In 1974 an article appeared in Science magazine with the dry-sounding title “Judgment Under Uncertainty: Heuristics and Biases” by a pair of psychologists who were not well known outside their discipline of decision theory. In it Amos Tversky and Daniel Kahneman introduced the world to Prospect Theory, which mapped out how humans actually behave when faced with decisions about gains and losses, in contrast to how economists assumed that people behave. Prospect Theory turned Economics on its head by demonstrating through a series of ingenious experiments that people are much more concerned with losses than they are with gains, and that framing a choice from one perspective or the other will result in decisions that are exactly the opposite of each other, even if the outcomes are monetarily the same. Prospect Theory led cognitive psychology in a new direction that began to uncover other human biases in thinking that are probably not learned but are part of our brain’s wiring.

Thinking fast and slow.

PurposeThe main purpose of this paper is to explore the influence mechanism of corporate social responsibility (CSR) for smart cities on consumers' purchase intention. The authors aim to identify the key components of CSR for smart cities based on the perspective of consumers, namely responsibility toward consumers, environment and community and validate their relationship.Design/methodology/approachThe authors exploit data collected by questionnaire surveys to estimate the effects of CSR for smart cities on consumers' purchase intentions and to investigate the statistical causality between them. The multilinear regression model is used to figure out the different impact levels of the three dimensions of CSR for smart cities on consumers' purchase intention.FindingsThe results illustrate that CSR for smart cities and its three dimensions all have significant positive impacts on consumers' purchase intentions. Besides, consumer–corporate identity (CCI) exerts a partial mediation effect on this influence mechanism.Research limitations/implicationsThis research is based on a rather small sample size. Besides, due to the time limitation and other factors, some other control variables are neglected in the regression model. Therefore, the impact level could be distorted.Practical implicationsThe authors put forward management implications according to research conclusions. Corporates should actively fulfill the CSR in the field of consumer responsibility to boost consumers' purchase intention. Corporate should strengthen the interaction with consumers to improve their corporate identity.Originality/valueThe main contribution of this paper is to provide convincing evidence of the impacts of CSR for smart cities on consumer purchase intention (CPI), thus proposing effective measures for corporates to win more consumers by taking on social responsibility for smart cities. This paper takes CCI as mediating variable to deepen the understanding of the impacts of CSR for smart cities on CPI, which is innovative and beneficial to enriching literature in related fields.

Research of influence mechanism of corporate social responsibility for smart cities on consumers' purchasing intention

As one of the largest payment platforms in China, Alipay, launched a green behavior project called Ant Forest. The purpose of taking this initiative by Alipay is to make the world greener. This mobile application has motivated many users to plant millions of trees. However, minimal studies have been conducted to empirically disclose the factors that motivate Alipay users to participate in Ant Forest. A mixed-method approach is used to examine the factors influencing Alipay users to participate in Ant Forest and the level of satisfaction they got from it. The qualitative method was carried out through a structured questionnaire from 400 Alipay users and qualitative data from 20 users who have applied to Ant Forest and successfully planted trees. Additionally, alongside the mixed method employed to rationalize the relationship highlighted, a multiple regression model was employed to predict the value of a dependent variable (level of satisfaction) based on the value of several independent variables (namely, number of years engaged with Ant Forest activities, age, gender, profession, and education). The empirical results show that intrinsic motivations (enjoyment, social interaction, fulfilment, altruism) and extrinsic motivations (external rewards, competition) influence Alipay users to participate in the Ant Forest project. Further insights are presented in the concluding section for all stakeholders for environmental sustainability among the users of Alipay.

/pdf/motivations-influencing-alipay-users-to-participate-in-the-1cyew6hl.pdf

Motivations Influencing Alipay Users to Participate in the Ant Forest Campaign: An Empirical Study

Based on the concept of hypocrisy perception, this paper studies and discusses consumers' response to corporate social responsibility (CSR) hypocrisy perception, discusses the formation of consumers' hypocrisy perception from the perspective of consumers' expectation of CSR, and originally reveals the psychological and behavioral mechanisms of the generation of negative emotions and their role in consumer response. The results are as follows: (1) consumers' CSR expectations and CSR perceived performance have a significant impact on their perception of hypocrisy; (2) consumers' perception of hypocrisy has a significant impact on their negative emotions; (3) consumers' negative emotions can have a significant impact on their attitudes and negative behaviors. The research results show that consumers' expectations of CSR activities can affect consumers' attitudes and behaviors, among which consumers' perceived CSR performance, perceived hypocrisy, and negative emotions play an important role. In the implementation of CSR activities, enterprises should avoid making consumers have excessive expectations and appease their negative emotions, so as to improve the implementation effect of CSR activities.

/pdf/consumer-response-to-corporate-hypocrisy-from-the-1qt364muh8.pdf

Consumer Response to Corporate Hypocrisy From the Perspective of Expectation Confirmation Theory.

The purpose of this study was to investigate the effect of perceived corporate hypocrisy on customer mistreatment behaviors within the banking industry and the moderating effects of customer–company identification (CCI) and brand equity on the hypocrisy-mistreatment behavior relationship.,Using multistage sampling, 567 South Korean banking service users participated in an online survey. Structural equation modeling (confirmatory factor analysis) and hierarchical regression analysis were used to analyze the data.,Perceived corporate hypocrisy was positively related to customer mistreatment behaviors. CCI and brand equity differentially moderated the positive relationship between perceived corporate hypocrisy and customer mistreatment behaviors. Specifically, CCI and brand equity strengthened and weakened the positive relationship between perceived corporate hypocrisy and customer mistreatment behaviors, respectively.,Marketers and banking service managers should pay careful attention to customer evaluations of their social activities and communication about the ethical values and actions of their firms. Since CCI and brand equity have contrasting moderating effects on the corporate hypocrisy-aggressive behavior relationship, marketers should devise different strategies to manage the adverse effects of such corporate crises on company-identified and brand-committed customers. For example, managers should focus on customers who actively express their deep sense of disappointment or profound anger in response to corporate hypocrisy (e.g. those with high levels of CCI) because they are likely to exhibit aggressive behaviors toward the company or its employees. Managers need to devise customized relationship-recovery strategies for such customers (e.g. forging a personal connection between the customer and service provider).,The present findings delineate the adverse effects of perceived corporate hypocrisy on customer behaviors and the moderating effect of customer relationship quality on the corporate hypocrisy-mistreatment behavior relationship within the banking industry.

Customer reactions to bank hypocrisy: the moderating role of customer–company identification and brand equity

Companies may be confused by consumers’ perceptions of hypocrisy related to corporate social responsibility activities. This study investigates the mechanism of consumer response to perceived hypoc...

https://journals.sagepub.com/doi/pdf/10.1177/2158244020922876

Consumer Response to Perceived Hypocrisy in Corporate Social Responsibility Activities

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Consumer Response to Corporate Hypocrisy From the Perspective of Expectation Confirmation Theory.

Consumer Response to Perceived Hypocrisy in Corporate Social Responsibility Activities