An exploration of mediating mechanisms influencing willingness to pay for corporate social responsibility

Abstract

Abstract Corporate social responsibility is known a significant factor in shaping consumer behavior, particularly in socially conscious and developing economies. However, limited research has observed the psychological mechanisms through which CSR affects consumers’ willingness to pay. The objective of the study is to examine how CSR influences WTP through the mediating roles of consumer happiness, retention and emotional attachment, while also exploring the complementary role of service quality in strengthening these relationships. Drawing on cognitive consistency, stakeholder and perceived value theories, a conceptual framework was developed and tested using data from 350 consumers in Pakistan. The results reveal that CSR indirectly influences WTP through the mediators, but does not exert a significant direct influence. In contrast, service quality shows a significant direct and indirect influence on WTP. The findings propose that emotional and relational factors mediate the relationship of corporate social responsibility and willingness to pay and highlight the importance of integrating corporate social responsibility with high service quality to improve consumer satisfaction and price tolerance. The study offers theoretical and managerial implications for using corporate social responsibility and service quality to foster long-lasting consumer relationships and improve pricing strategies in developing economies.