Do CSR actions in retailing really matter for young consumers? A study in France and Norway

Journal of Retailing and Consumer Services 21 (2014) 9–17

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Journal of Retailing and Consumer Services journal homepage: www.elsevier.com/locate/jretconser

Do CSR actions in retailing really matter for young consumers? A study in France and Norway Leïla Loussaïef a,n, Silvia Cacho-Elizondo b, Inger Beate Pettersen c, Anita E. Tobiassen d a

ISC Paris, 22 bd du Fort de Vaux, 75848 Paris Cx 17, France IPADE Business School, Floresta # 20, Col. Clavería, Delegación Azcapotzalco, México D.F. 02080, Mexico c Centre for Innovation, Faculty of Engineering, Bergen University College, Norway d Norwegian Business School, Thormøhlensgt 39, No-5006 Bergen, Norway b

art ic l e i nf o

a b s t r a c t

Article history: Received 30 April 2012 Received in revised form 17 September 2013 Accepted 21 September 2013 Available online 15 October 2013

This research explores how young consumers perceive Corporate Social Responsibility (CSR) actions of French and Norwegian food retailers, and how these actions affect brand image, brand associations (adjectives, verbs, and names) and consumer–retailer relationships. It uses a qualitative methodology with in-depth interviews. This exploratory study shows that French and Norwegian young consumers have problems linking CSR with food retailing, and they question retailers' true commitment to CSR. Young French consumers had stronger brand associations than young Norwegians. Therefore, we argue that, CSR commitment among retailers in both countries is likely to positively affect retailer brand image. Nevertheless, CSR related products could also be associated with higher prices and may exclude lowincome consumers. & 2013 Elsevier Ltd. All rights reserved.

Keywords: Retailing Brand image Brand associations Corporate Social Responsibility (CSR) Corporate communication France–Norway

1. Introduction Corporate Social Responsibility (CSR) has become an important research topic and the number of specialized journals dedicated to this topic is increasing. At the same time, CSR is becoming a more important strategic issue for businesses (Ramasamy and Yeung, 2009). Unfortunately, many companies only start to feel concerned about CSR when their reputations suffer. Firms such as Coca Cola, Wal-Mart and Gap have been criticized for their lack of commitment to CSR (www.marketingweek.co.uk, 2007). This disregard of corporate behavior could irreversibly damage or change their brand image (Louppe, 2006). Neglecting CSR is a strategic mistake because consumers seem to respond positively when a certain brand exhibits good social behavior (Gupta and Pirsch, 2008; Castaldo et al., 2009). Increasing consumer interest in corporate social responsibility could lead them to reward or punish corporate brands accordingly, and thereby affect brand images. It is, therefore, critical to assess the effect CSR has on consumers. However, most research in this field tends to take a corporate perspective (Konrad et al., 2006) while less research adopts the consumer perspective (Gupta and Pirsch, 2008; Swaen and n

Corresponding author. Tel.: þ 33612172599. E-mail addresses: [email protected] (L. Loussaïef), [email protected] (S. Cacho-Elizondo), [email protected] (I.B. Pettersen), [email protected] (A.E. Tobiassen). 0969-6989/$ - see front matter & 2013 Elsevier Ltd. All rights reserved. http://dx.doi.org/10.1016/j.jretconser.2013.09.005

Chumpitaz, 2008; Ramasamy and Yeung, 2009). In this exploratory study, we integrate research reflecting both corporate and consumer perspectives, with an emphasis on consumer perceptions. Our research is focused on young adult consumers in two countries: Norway and France. It is interesting and relevant to gain insights into the behavior of young adult consumers, as this consumer group has increasing commercial worth and their behavioral traits and attitudes are barometers of social and cultural changes (Grant, 2004; Kruger and Mostert, 2012). Young adult consumers are also seen as educated, critical, and demanding consumers (Grant, 2004; Sheriff and Nagesh, 2007). Furthermore, they exhibit high social consciousness as they have a concern for social causes and activism (Sheriff and Nagesh, 2007; Hyllegard et al., 2011). Young adults are also increasingly brand conscious and exhibit strong brand relationships (Grant, 2004; Sahay and Sharma, 2010). Yet, in societies where young adults move out on their own, they are under economic pressure to purchase all products for the household. Consequently, they balance between being brand conscious and price-sensitive (Chandon et al., 2009; Sahay and Sharma, 2010). As consumer behaviors are presumed to vary across nations (Podoshen et al., 2011) and communication about responsibility is considered difficult to articulate across cultures (Usunier and Prime, 2012), we compare young adult consumers because they tend to be more alike than other groups in an international context. Comparing this group in France and Norway will allow us to analyze the differences and similarities between them.

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We selected food retailing as the business context, and found this sector appropriate for several reasons. First, the food sectors – encompassing the supply chain from producers, agri-business, and food industry to retailers – have suffered a number of recent food scandals: the dioxin crisis, the bovine spongiform encephalopathy (BSE), and E. coli and Salmonella (Chen, 2008). It is, therefore, crucial for actors such as retailers to build and enhance consumers' trust in food safety. Second, food products are seen as highinvolvement products as they are closely associated with individual health (Montoro-Rios et al., 2008). Simultaneously, consumers have difficulties evaluating food attributes through search and experience, and have to rely on credence properties (Chen, 2008). Consumers, therefore, would seek to diminish risk perceptions through trusted brands, including retailing brands. Third, retailers are starting to see the positive relationship between social corporate responsibility and the building of consumer trust and loyalty (Swaen and Chumpitaz, 2008; Xie and Peng, 2011). Further research exploring the effects of CSR in the retailing sector could clarify these relationships (Oppewal et al., 2006). The focal research analyzes how young adult consumers perceive retailers' CSR actions. More specifically, we explore whether and if so how CSR actions affect brand image, brand associations, and the consumer–retailer relationship in France and Norway. First, we explore young adult consumers' awareness and perceptions of CSR actions in food retailing. Consumer awareness of CSR actions is essential because it preconditions a consumer's ability to reward or punish firms (Kline and Dai, 2005). CSR awareness among consumers also depends on retailers' efforts and strategies to communicate their CSR actions (Pomering and Dolnicar, 2009). Second, we explore whether and if so how retailers' CSR actions affect brand image, brand associations, and the consumer–retailer relationship. Few retailing studies on brand image have incorporated the effects of CSR actions (Gupta and Pirsch, 2008). Hence, we have limited knowledge of CSR effects brand image, brand associations, and the consumer–retailer relationship. Our research, therefore, aims to add new insights into these issues. The paper is structured as follows. First, we present the theoretical and conceptual framework and the research context. Second, we describe the methodology. Third, we analyze and present the main findings. Finally, in the last section, we present the discussion and conclusions as well as some ideas for future research.

2. Theoretical framework Our theoretical framework is based on two main areas. The first covers research on CSR, with both a consumer perspective and a corporate perspective. The second area incorporates theories on brand image, brand associations, and consumer–brand relationships, with a focus on how CSR actions impact these conceptual constructs. 2.1. The CSR concept and consumer perceptions In 2001, the European Commission defined CSR as “a concept whereby companies decide voluntarily to contribute to a better society and a cleaner environment” (European Commission, 2001). Conceptually, Corporate Social Responsibility is composed of four inter-related dimensions: economics, law, ethics, and philanthropy. These factors allow a firm “to make a profit, obey the law, be ethical, and be a good corporate citizen” (Carroll, 1991). CSR implies that a company, after identifying its stakeholder groups (e.g. investors, employees, customers, suppliers, and public organizations), should incorporate its needs and values within its

strategic and operational decision-making process. The French trading group Monoprix illustrates this trend. Since 1990, this group has undertaken a CSR strategy that has become a true priority for the company. Monoprix embraces a broad spectrum of actions such as: the use of a mascot (a penguin) in its communication campaigns, a claim that “…the company thinks, buys and sells in a responsible way”, the promotion of fair-trade and organic brands like Alter Eco and Monoprix Bio, and the use of transparent carrier bags with less ink and solvents. Having CSR in mind implies that firms should be concerned about accomplishing two goals: to be profitable, and to be in line with the social objectives defined in CSR. This will determine their ability to achieve economic goals in a socially responsible way (Carroll, 2000). Meeting both types of goals, economic and non-economic, is necessary for the survival and success of the organization. When implementing a CSR strategy, retailers need to understand how consumers perceive CSR actions and how they react to them (Du et al., 2007). Scant research, however, offers insights into how consumers' perceive CSR actions (Swaen and Chumpitaz, 2008). Earlier studies have also narrowed the conceptualization of CSR and have only examined one or two CSR actions (Maignan, 2001). Few studies have examined general consumer awareness of CSR actions, perhaps because of the broad and complex nature of the CSR concept (Pomering and Dolnicar, 2009). Despite the limited knowledge of consumer perceptions of CSR actions, scholars consider consumer awareness of CSR to be a precondition to rewarding ethical businesses behavior (Kline and Dai, 2005). Pomering and Dolnicar (2009) define CSR awareness as an independent variable in explaining purchase behavior. Other researchers find that CSR awareness moderates consumers' product evaluations (Mohr et al., 2001; Klein and Dawar, 2004) or behavior intents (François-Lecompte, 2006). Previous studies implicitly assume awareness of CSR actions, or create it artificially in experiments. Consequently, “…it remains unclear whether real consumers are aware of CSR activities when facing real consumption decisions, leaving a gap in our understanding of the CSR-consumer nexus” (Pomering and Dolnicar, 2009:286). Exploratory research can contribute to our understanding of CSR–consumer relationship by investigating how consumers perceive CSR and to what extent they are cognizant of CSR actions (Maignan, 2001). 2.2. CSR and corporate communication To better understand consumer perception of CSR, we need to look into how retailers communicate CSR. Scholars agree that there are challenges and limitations with respect to the communication of CSR (Schultz and Morsing, 2003; Kline and Dai, 2005; Pomering and Dolnicar, 2009). In general, companies fail to communicate their CSR actions effectively, thereby producing a weak consumer response. Pomering and Dolnicar (2009) argue that companies should feel responsible for low CSR awareness among consumers. This challenges firms to create conscious linkages between socially responsible actions and corporate image (Kline and Dai, 2005). Nevertheless, consumers are interested in learning more about firms' CSR actions, and are more supportive of firms that pursue them. It is then necessary to educate consumers on this type of action, and thereby facilitate the acquisition and storing of CSR related information. When consumers are less familiar with certain social issues related to CSR policies, it is even more important to adopt the role of social-issue educator to produce the desired effects on consumers (Auger et al., 2003). CSR related marketing communications are an opportunity to shape consumer perceptions of organizational image and brand values. Retailers can shape a market differentiating strategy that builds brand equity, and leads to customer loyalty and other positive post-purchase outcomes. In the literature, the retailer brand equity concept represents

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a recent view of the value created by retail brands (Jara and Cliquet, 2011). However, retailers should not advertise CSR actions in the same way as products, services, or brands (Schultz and Morsing, 2003). The sensitive nature of CSR communications represents a challenge to marketers because trust in the information source is critical for a successful communication. Morsing and Schultz (2006) find that consumers prefer CSR related communications in so-called minimal release channels (annual reports and web sites rather than in traditional communication channels). Consumers are generally skeptical towards advertising, and react negatively if firms attempt to persuade them. Furthermore, consumers may think that CSR actions are used superficially to promote corporate image and do not reflect the firm's real values and ethical commitment. Thus, companies need to carefully evaluate various promotional practices to communicate their actions. When they select channels and tools of communication, it is important to understand at what level CSR impact occurs. For consumers, three main levels may be affected: retailer brand image, retailer brand associations, and the consumer– retailer relationship.

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for the retailer itself.” Therefore, retailer brand image embraces consumer “attitude” toward the retailer, taking into account the three components of an attitude: cognitive, affective and behavioral. We argue, therefore, that retailer brand image is a multidimensional construct (Low and Lamb, 2000). We also expect that CSR affects the consumer–retailer relationship. Brand relationship theory suggests that consumers develop ties with brands not only for utilitarian or functional motives (e.g. geographical proximity, price, product quality, sales incentives), but also for more emotional and identity-fit motives. Research has recognized matching values such as empathy, honesty, trust, and solidarity to strengthen relationships (Fournier, 1998; Roberts, 2005; Cacho-Elizondo, 2006; Thompson et al., 2006). When consumers acknowledge a brand's values, they are more willing to establish stronger and longer lasting bonds with that brand or company. Also, previous research has shown that positive brand attitudes, consumer satisfaction, and purchase intentions increase as the congruence between self-image and brand image increases (Graeff, 1996, 1997; Park and Lee, 2005).

3. Research context and methodology 2.3. CSR impact on brand image, associations and relationships 3.1. Comparing French and Norwegian retail sectors The first level that can be impacted by CSR is brand image. Assuming that consumers are aware of and perceive CSR actions, Swaen and Chumpitaz (2008) claim that there can be an impact on brand image and trust toward the company. In addition to the effect on brand image, the actions related with social responsibility can influence corporate-consumer identification. In other words, consumers may perceive a socially responsible company to have greater prestige or reputation, and, therefore, a socially responsible company might be able to differentiate itself from competitors (Curras-Perez et al., 2009). Some studies have found that CSR actions, when part of a brand's positioning, have the potential to transform consumers into long-term advocates of the brand, which has important implications for relationship marketing (Du et al., 2007). A few studies have examined the consumer-impact issue in the retailing sector. Among them, Gupta and Pirsch (2008):524) have studied how effective corporate social responsibility programs positively influence store image. They conclude that a “…retailer's ability to offer up-to-date products and relevant selections in conjunction with their ability to do so in socially responsible way are both important in determining consumer's retail store image and in contributing to the consumer's overall level of satisfaction and loyalty toward the store.” This is particularly true in a consumeroriented industry such as retailing because retailers can have a significant impact on CSR-related issues through their unique relationship with consumers (Oppewal et al., 2006). Gupta and Pirsch (2008) also point out that in retailing studies the constructs of “store image” or “store personality” (referred to here as brand image or brand personality) do not always take into account the role of CSR actions. A retailer's brand image is usually defined considering only aspects like geographical location, merchandising, customer service, prices, advertising, personal selling, sales incentives, loyalty programs, and the affective inferences derived from the store's attributes. This gap in the evaluation of retailers' brand image is disconcerting because retailers spend money and time communicating their CSR actions, and therefore should expect a capitalization in terms of consumers' attitudes and relational proximity. According to previous research, the assessment of retailer brand image includes not only the physical attributes of the store (e.g. space, temperature, neatness) but also more affective attributes such as the “fit with store personnel” or even a kind of “love

In the following section, we describe and compare the retailing sectors of France and Norway. France, with 65 million inhabitants as of 2012, has been a retail pioneer in terms of launching different types of formats: supermarkets, hypermarkets, convenience stores, and discount stores (Benoun and Héliès-Hassid, 1995; Sternquist, 2007). Nowadays, the French retailing sector has a considerable market size and is Europe's second largest retail market after Germany. One of the top French retailers, Carrefour, is the second largest retailer in the world, and seven other French retailers are among the 100 largest retailers in the world. Norway, with almost 5 million inhabitants, does not have the local growth and the widespread international food retail market that France has, despite being a wealthy country. Though Norwegian food retailers are less international, they have also made some strategic inroads into other Nordic nations and the Baltic countries. Four retailing groups dominate the Norwegian retail sector: Norges Gruppen, REMA1000, ICA, and COOP. Low-price discounters are the most common store format in Norway, and represent 53% of total sales, while hypermarkets represent only 6% (Einarsson, 2008). In terms of corporate branding, Norwegian retailers are just beginning to develop their branding; some of them through private labels such as organic and premium brands (e.g. Coop Norge). French retailers are more highly developed in that respect and are almost on par with British retailers, which are considered to be the best in the world (Sternquist, 2007). Sternquist identifies five generations of retail brand strategies which, going from less to more advanced, are: (1) Generic, (2) Low price copy, (3) Me-too copy of major brands, (4) Value-added, and (5) Corporate Positioning. French retailers have more sophisticated branding strategies that can be described as 4th and 5th generation while Norwegian retailers with less evolved branding strategies can be considered as 2nd to 4th generation. In both countries, few retailers espouse corporate values related to CSR. Appendices A1 and A2 list, respectively, the major French and Norwegian retailers and the corporate values identified on their websites. In the case of France, values that seem more directly related to CSR are: Responsibility (Carrefour), Solidarity (Carrefour and Casino), and Social Utility (E. Leclerc). Norwegian retailers' corporate values most closely related to CSR are the following: Responsibility,

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Creating Value (Norges Gruppen), High Business Ethics (REMA1000), Safety (ICA), Empathy, and Honesty (COOP). However, none of the corporate values displayed correspond directly with the wordings: “corporate social responsibility”. 3.2. Methodology This research explores how young adult consumers perceive French and Norwegian food retailers' CSR actions, and how these perceptions affect retailer brand image, associations, and consumer–retailer relationships. The qualitative orientation of our study is in accordance with empirical researches that are more often used to explore and elaborate new theoretical objects than to test them (Snow and Thomas, 1994). As explained by Silverman (2011), the main objective of a qualitative research is to focus on how and why instead of how much and how many as for quantitative approach. As with most explorative methods, we do not seek external validity nor do we seek to offer a representative picture of consumers as a group. Rather, the main purpose is to describe a complex social system (Marshall and Rossman, 1989). With these explorative objectives in mind, we used a qualitative methodology in line with Glaser and Strauss (1967) common approach. The analysis used is a classical content one, with sorting, categorizing and naming themes. A convenience sample of 16 business students (8 in each country) was drawn from the population of young adult consumers. Business students are an appropriate sample in cross-country research because they are more likely to possess homogenous traits across countries. The use of a student sample, therefore, reduces potential confusions caused by cross-country differences in heterogeneous samples and ensures that the findings reveal cross-country differences and similarities and not external confounding factors (Engle et al., 2011). Business students are also likely to be more aware of the concept of CSR than non-students, as business schools are increasingly integrating CSR topics in their core content (Sobczak et al., 2006; Kolodinsky et al., 2009). Choosing business students, therefore, ensures that we have access to knowledgeable respondents that can provide relevant and high quality data (Kolodinsky et al., 2009; Hyllegard et al., 2011). However, prior research is not conclusive regarding how education influences attitudes (positive or negative) towards CSR (Sobczak et al., 2006; Hyllegard et al., 2011), and little research has dealt with business students and their attitudes towards CSR (Kolodinsky et al., 2009). Using business students in research about CSR is also relevant and important because they will become the managers and business leaders of tomorrow (Kolodinsky et al., 2009). We conducted eight interviews in France (Paris) then eight interviews in Norway (Bergen). The sample was composed of male and female undergraduates aged 18–25. The Norwegian sample consisted of 4 males and 4 females. All were students with tight budgets. Respondents concern for CSR varied, and we observed the following: 2 with low concern, 4 with medium concern, and 2 with high concern for CSR. The French sample was composed of two males and six females, one of whom was working while studying; 6 of them showed a low or medium concern of CSR while 2 seemed very sensitive to it. The interviews were conducted in the respondents' business schools and recorded with the participants' permission. The interview guide was composed of three main topics. The first part examined consumers' awareness and perceptions of retailers' CSR actions. In interviews, respondents were encouraged to spontaneously give examples of retailers and their CSR actions. The second part focused on associations that CSR actions of specific retailers (selected by the interviewee) elicited. This part explored brand associations (verbs, names and adjectives) linked to the perceived CSR actions as well as associations derived from

potential CSR actions. After transcription, the interviews were analyzed using a classical content analysis: sorting, categorizing and naming themes. Two local researchers conducted the interviews, with one directing the interview and the other taking notes and questioning when necessary. The sample used represents the number of respondents that were necessary to achieve a position whereby each of the emergent categories and relationships was saturated (Glaser, 1978). This form of theoretical sampling ensures that the emergent theory is fully developed or not lacking in density or precision (Strauss and Corbin, 1990). Theoretical saturation can be achieved without complex details, indeed these can strangle workability. Thus, Glaser (1978) carries forward the original claim that “our strategies do not insist that the analyst engage in a degree of explicitness and overdrawn explanation in an effort to coerce the theory's acceptance by drugging the reader's imagination and beating him into intellectual submission” (Glaser and Strauss, 1967, p. 8) In France, where fieldwork started, saturation was achieved after eight interviews, with no new codes emerging in the analysis. This allowed the local researchers to stop conducting new interviews. The Norwegian fieldwork followed the French scheme, and saturation was also achieved after eight interviews.

4. Main results 4.1. Consumers perceptions of CSR actions in retailing Both French and Norwegian consumers had problems coming up with examples of CSR actions in food retailing. In fact, the respondents had real problems even empirically linking CSR and retailing in general. Our young consumers across both countries thought the relation between CSR and retailing was doubtful, and they questioned retailers' engagement in CSR. French and Norwegian consumers were not convinced that retailers had a true commitment in spite of their CSR actions, as the following quotes illustrate: “…there is no doubt that they just do it because of profit” (Preben) and “… just to make more money?” (Jonathan). However, consumers across the two countries were positive about retailers' (future) engagement in CSR: “I don't think they do anything about corporate social responsibility, but it would be a worthwhile thing if they did it” (Marie-Laure). Respondents in both countries mentioned replacing plastic bags with more environmentally friendly bags (e.g. bio degradable, solid textiles) in stores. In France, nearly all (7 of 8) came up with the example of plastic bags and had high awareness related to this issue (e.g. the extent of the problem of plastic bags globally, and the important of solving it). Only 4 Norwegian consumers mentioned plastic bags and 2 had high awareness of the issue. The higher awareness in France could be due to French retailers' higher engagement compared to Norwegian retailers, as well as to France and the EU's engagement in the debate over future legislation on plastic carrier bags (www.europarl.europa.eu). Norway has not made any commitment to reduce the use of plastic bags. Our French respondents suggest that French retailers have assumed the role of leaders and educators (cf. Auger et al., 2003) on the issue, and respondents perceived retailers' actions as important. In Norway, retailer engagement is limited to selling alternative bags – but there are no real attempts to reduce the volume of plastic bags. Despite the difference in awareness across the two countries, this specific issue had been noticed by young consumers; it seemed easy to observe retailers´CSR actions in stores and easily acquired and remembered by consumers (cf. Pomering and Dolnicar, 2009). Aside from plastic bags, it was difficult for respondents in both countries to identify retailers' CSR actions. With some help, French

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consumers mentioned other CSR actions, such as helping small producers, offering better working conditions, encouraging recycling, caring about families, and promoting economies of energy. Norwegians mentioned organic and fair-trade products and linked them to CSR. They also mentioned the labeling of healthy food and actions to minimize waste. In our sample, young adult consumers in both countries complained about the lack of visibility of retailers' CSR communication efforts. Some Norwegian respondents said they needed more information to be convinced about the benefits of CSR related products such as organic and fair-trade products (cf. Auger et al., 2003). Their main source of information was observation in stores while shopping, although some had looked for information through retailers' websites or other online sites (e.g. newspapers). None of the respondents had spent a great deal of energy seeking information about CSR in retailing. 4.2. Impact of CSR on brand associations Although our young French consumers did not seem fully aware of retailers' efforts towards CSR, the associations came out easily. The first associations were descriptive adjectives rather than action verbs or nouns (“responsible”, visionary”, “innovative”, “empathetic”, “human”, etc.). These associations had positive connotations, which imply retailer brand image reinforcement. Conversely, CSR was also associated with higher prices and, therefore, perceived as a factor that jeopardized low-income customers (“If I wasn't a student, I would be able to buy more responsible products” (Cloé)). Moreover, retailers communicating their CSR actions or products were perceived as merely concerned about their brand image. As Cloé and Marine said: “It is for their image;” “It is all about image”. Norwegian respondents struggled more to describe retailers' CSR actions using adjectives, verbs, or nouns. Their problem associating CSR actions with specific retailers may explain this. Even though they managed to recall (with some assistance) CSR actions like offering ecological or fair-trade products, these actions were only weakly linked to retailers. In the respondents' opinion, Norwegian retailers were in an early stage concerning CSR. Our young Norwegian consumers mentioned various CSR actions and expressed their perceptions of these actions in the form of both positive and negative associations. The following citations illustrate positive associations: “I think of healthy products and menus – which can guide consumers on what to buy. It is also very positive that they offer an ecological product line” (Lise) and “It is important that retailers are engaged in selling sustainable products – when you shop there you make a positive contribution and make the world a better place” (Martin). In sum, the young consumers mentioned positive associations such as: adding value to consumers, introducing new product lines (fair-trade and ecological products), reducing waste (environmentally friendly bags,) contributing to make a better world, and promoting social and economic development in Third World countries. The negative associations were linked to the view that retailers were driven by profit, and were more concerned with their own corporate image than with true commitment to social responsibility. Retailers consequently seemed to be perceived as lacking integrity, as the following citations illustrate: “CSR actions are of importance for me – but I would like to know if retailers do it just for money, and exploit consumers even more with higher prices” (Hanna) and “The ecological product line has more to do with profit I guess than CSR” (Lise). French interviewees with low concern for CSR were less prone to suggest both positive and negative brand associations, than those who showed higher concern. Contrary to what we originally expected, trust was not very important in informing their views.

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Norwegian respondents with a low concern for CSR tended to express associations that were more negative while consumers with high concern were more positive in their statements. Thus, the main difference between the samples is that French respondents used more adjectives and verbs compared to Norwegians, who were less eloquent in their descriptions. Appendix A3 compares the foremost adjectives, verbs and nouns cited by the respondents in both countries. 4.3. Impact of CSR actions on consumers' relationship with retailers In the French sample, we identified two consumer profiles: emotional and indifferent. The emotional link ranges from basic sympathy towards the retailer to a more complete identification with the brand. Those indifferent to CSR had a more functional view of retailers: “A supermarket is just a supermarket” (Marie-Laure). “I wouldn't go far from my place just because the supermarket is implementing CSR actions” (Antony). Those with an emotional profile were more aware of CSR actions and far more inclined to do their shopping in stores with a focus on CSR compared to those who were indifferent. As Cloé said: “If I had to choose between two supermarkets at the same distance from my place, I would automatically go to the one I feel is more responsible”. Those not concerned about CSR did not find any reason to choose one specific retailer over another. In the Norwegian sample, we also identified two profiles: rational and emotional. The rational consumers were, in fact, skeptical of the presumed positive effects of several CSR actions or products, and they wanted documentation of the actual effects of CSR actions, such as ecological and fair-trade products. The following citations describe their thinking: “It is fine with organic products – but then we could not produce enough food to feed people. And with child labor, I think that children should not work – but then you take away the income from the family” (Hanna). “To get motivated, I need to be convinced that these companies are able to hinder environmental crisis with their CSR engagement – then I would care” (Preben). If retailers or other organizations could document that such products are environmentally friendly and promote local economic development, respondents would consider purchasing CSR related products. The emotional respondents were more inclined to buy organic products (such as chicken) due to their empathy with animals: “I have started to buy organic chicken and eggs – I love animals and care about their well-being” (Annicken). These emotional consumers also expressed high levels of empathy with people struggling under harsh working conditions in Third World countries as well as the use of child labor, which sometimes led to product boycott: “I have heard about coffee farmers at company X, and child labor at company Z – about the hard work and the poor pay – and I don't want to buy their products because it would weigh on my consciences” (Lise). Our analysis indicates that the causal link between CSR actions and the consumer–retailer relationship is not straightforward. Other moderating factors, such as consumer profiles, could influence the effect of CSR actions on the consumer–retailer relationship. Even though CSR actions can influence consumer attitudes positively, respondents explained that these attitudes would influence purchase intention and retailer loyalty to only a minor degree, as illustrated in the following quote: “CSR actions are positive – but it does not mean I will shop at a particulara store because of that. The quality, freshness and product offer are more important” (Preben). So, other purchase criteria seemed to be more important for young adult consumers. The most important criterion cited by all respondents was geographical proximity, since many students do not have access to a car. Other important purchase criteria were:

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low prices, product quality, fresh products, and product variety. If retailers, in addition to the mentioned criteria, offered CSR related products, consumers were inclined to stay loyal to them.

5. Discussion and conclusions 5.1. Challenges to communicate CSR through retailer branding As outlined above, both Norwegian and French consumers in our sample had difficulties linking CSR to retailing and questioned whether retailers had a true engagement in CSR. Our young consumers also lacked information about CSR actions in food retailing, and potential positive consequences of such actions. We argue, therefore, that retailers are generally failing to communicate their CSR efforts, and are thereby responsible for low awareness of CSR (Pomering and Dolnicar, 2009). Several factors may explain the above statements. First, does retailing, and specifically food retailing, have some inherent characteristics that influence how we view the sector? The relatively recent history of retailers as retailer brands could be one possible explanation. Although a number of European retailers have invested in building their retailer brands, these recent branding efforts do not include all actors and all countries (Jara and Cliquet, 2011). In addition, we believe that building and managing retailer brands is challenging, because, among other factors, the retailer brand equity concept and phenomenon is complex and multidimensional. The retailer brand equity concept encompasses numerous elements that create and maximize the value of the brand, such as retailer personality, geographical location, advertising, loyalty programs, price image, physical appearance of store, perceived quality, brand service, store service, among others (e.g. Gupta and Pirsch, 2008; Jara and Cliquet, 2011). Until now, there has been scant research centered on the retailer brand equity concept (Swoboda et al., 2009). Moreover, food retailers typically offer a wide range of products and brands in their stores, including both retailer and industry brands, which may render acquisition and storing of brand information more difficult (see Pomering and Dolnicar, 2009), including CSR information. In many business sectors, CSR has become one important element in building and sustaining brands (Blumenthal and Bergstrom, 2003; Gupta and Pirsch, 2008). Yet, in retailing, it seems that CSR actions frequently occur ad hoc and are not an integral part of a retailer's branding strategy. CSR actions should be part of a branding strategy that aims to reinforce trust and loyalty in consumer markets. 5.2. Consumers want more information about CSR actions Young adult consumers in our sample lacked information about retailers' CSR actions. They rarely searched for information actively on retailers' websites, where food retailers publish information on their CSR policies. Respondents generally obtained information about CSR actions by observing them in stores, and consistently told us that retailers communicate little about CSR in stores or through other media. According to previous research (Schultz and Morsing, 2003; Pomering and Dolnicar, 2009), communicating CSR is challenging due to its sensitive nature as well as to the fact that trust in the information source is critical. Consequently, some authors (e.g. Schultz and Morsing, 2003) advise businesses to communicate CSR via annual reports and web sites, and not through traditional marketing. Our respondents did not suggest particular marketing methods, marketing content or channels, but they requested more information on retailers' CSR actions. This statement is consistent

with research that suggests that the public wants to know what, where, when and how brands are giving back to society (Blumenthal and Bergstrom, 2003). Some respondents also declared that retailers made little effort to educate consumers about their CSR efforts (cf. Auger et al., 2003). Yet, in the case of plastic bags, French consumers stated that retailers took a social-issue educator role to increase awareness. Therefore, additional information could raise CSR awareness among consumers, eventually increasing their purchase intentions and strengthening their relationship with the retailer. Hence, higher retailer investment in CSR communication could produce consumer value and increase the value of the retailer brand. For retailers, it is essential to have a broad communication approach that clearly defines the specific desires of their target segments (Pomering and Dolnicar, 2009). 5.3. Retailers should strengthen brand associations Respondents in both countries needed some assistance in recalling CSR actions in food retailing, but could not come up with any associations. These results suggest that the associative link between CSR and retailing is relatively weak. Moreover, CSR is neither part of these consumers' strong memory structure nor their unaided association networks related to retailer brands. Hence, if retailers want to capitalize on their CSR efforts, they need to strengthen these associations. Young consumers in both countries came up with both positive and negative associations.

Table A1 Corporate values of the main French food retailers. Retailer group

Food retailer brands

Corporate values

Carrefour

Carrefour Franprix Shopi Dia Ed Champion 8 à huit Ooshop

Freedom Responsibility Sharing Respect Integrity Solidarity Progress

Auchan

Auchan Les Halles d'Auchan Atac Simply Market Easymarché Fredy Eurobounta Auchandirect

Trust Sharing Progress

E. Leclerc

E. Leclerc Système U

Independence Social utility

Les Mousquetaires

Intermarché Ecomarché Netto

Engagement Trust Proximity

Cora

Cora Match Profi Houra.fr

Respect Honesty Cordiality Trust

Casino

Géant Casino Super Casino Monoprix Monop

Quality Proximity and adaptability Solidarity and equity Dialog, exchange and listening

Inno Petit Casino Petit Casino 24 h Vival Spar Leader Price

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The positive associations (i.e., being responsible, human, innovative and visionary) could positively affect consumer attitudes toward the retailer. Retailers could therefore benefit from being more explicit in their CSR communication efforts. Negative associations were mainly related to (1) skepticism towards retailers and whether their CSR engagement reflected a true commitment, and (2) high prices related to CSR actions (e.g. ecology and fair trade products). Thus, strengthening consumers' trust of their CSR actions could be one priority for retailers.

Table A2 Corporate values of the main Norwegian food retailers. Retailer

Food retailer brands

Corporate values

Norges Gruppen

Joker Kiwi Spar/Eurospar Meny Ultra

Responsible Consumer oriented Creating value Inspiring Dynamic

REMA1000

REMA1000

Focus on the core of our business concept High business ethics No debts Motivate people to share a winning culture Think positively and are pro-active Talk to each other – not about each other The customer is king Wish to have fun and be profitable

ICA

Ica local store Ica supermarket Ica Maxi

Safe Modern Inspiring Personal Engaging

COOP

Coop Prix Coop Mega Coop OBS

Faith in the business concept Want to have an impact Empathy Honesty Innovative

Trust is one important dimension contributing to the consolidation of retailer brand image and consumer–retailer relationships (e. g. Swaen and Chumpitaz, 2008; Curras-Perez et al., 2009; Xie and Peng, 2011). Young adult consumers are also frequently low-income consumers confronted with a price barrier (Chandon et al., 2009; Sahay and Sharma, 2010) despite being idealistic and community oriented (Sheriff and Nagesh, 2007; Shinn, 2011; Hyllegard et al., 2011). Retailers therefore need to be cognizant of this constraint and seek to avoid excessively high priced CSR products if they want to gain support from young adult consumers in the future. French consumers had stronger association networks than the Norwegian consumers in our study. We can attribute these differences to the two retailing contexts, where French retailers are more sophisticated and advanced in their retailer branding than their Norwegian counterparts (belonging to different generations of retail brand strategies, see Sternquist, 2007). Yet, European retailers are still developing their retailer branding strategies (Jara and Cliquet, 2011), and the potential for improvement is substantial. 5.4. No direct relationship between CSR actions and consumer loyalty Our exploratory study suggests that CSR actions can positively affect consumer attitudes and their relationships with retailers. However, consumers' low awareness of CSR actions in retailing precludes, to some degree, this potential effect. Yet, the relationship between CSR actions and consumer purchase intentions and loyalty toward a retailer is not clear. Consumer profiles, varying according to interest and concern about CSR, can influence their perceptions of CSR actions and their potential effects (e.g. Sen and Bhattacharya, 2001; Hyllegard et al., 2011). Moreover, other purchasing criteria, such as price and geographical proximity, moderated the effect of CSR actions on, for instance, purchase intentions. Hence, retailers need to better understand young adult consumer understanding of CSR, focusing more specifically on CSR awareness. Our young adult consumers were price sensitive and did not have access to vehicles. Consequently, they had less freedom of choice for products and retailers. Nevertheless, some of them were

Table A3 Brand associations cited to describe retailers´ CSR actions. France ADJECTIVES Sympathy dimension Pleasant; empathetic; and sharing Responsibility dimension Socially aware citizens; provident; and responsible; Concerned Human dimension Human Protective and non discriminatory Innovative dimension Building; innovative; different; visionary; and dynamic Price dimension VERBS

NOUNS

Responsibility dimension Select CSR engaged suppliers; have social conscience; create a better world; and help others be aware of CSR Human dimension Think about employees; improving working conditions; care about family well being; get close to consumers; and pay attention to others Innovative dimension Look at the future Opportunistic dimension Look for a better brand image Proximity Protection Positive outlook about the future

15

Norway

Socially responsible and concerned (animal welfare)

Advanced; visionary; different; innovative; leader; and competent Expensive Satisfying customer needs; promoting healthy products (fruits and vegetables); promoting fair trade products; and engaged in Society Improving working conditions and local economic development

Lacking integrity (ad hoc engagement & trend imitators); and driven by profit Collective values Consumer-oriented High priced

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also idealistic and concerned about CSR (Shinn, 2011; Hyllegard et al., 2011), and even small actions, such as a retailer's engagement in eliminating plastic bags, did produce positive associations. They also asked for more information about retailers' CSR actions, and asserted that more information could enhance their purchase intentions toward CSR related products and strengthen their relationship with retailers. If retailers want to use CSR actions to build and strengthen their retailer brand, they should create conscious linkages between their CSR actions and their retailer brand image (Kline and Dai, 2005), because consumers struggle to see these links. CSR information, targeting younger customers and using social media, would be a good option for retailers.

6. Limitations and future research This research has the natural limitations inherent in a qualitative and explorative approach. However, the article builds on previous research of the authors (one on the CSR concept and the other on consumer brand relationship). The main objective was to assess if CSR really matters to a small sample of young adult consumers in two different European countries. As the sample concentrates on business students, we recommend further studies that include other groups of students and also non-students to extend our knowledge of young adult consumers and their attitude towards CSR. Future research should also examine possible country specific traits, such as politics, socio-cultural aspects (Hofstede, 2001, 2005), and history in order to explain differences in CSR engagement in the retail sector. Additionally, it should test deeply, qualitatively, and quantitatively, the proposed contributions generated from grounded theory as well as the impact of potential moderators mentioned above. It would also be helpful to apply these findings to a particular retailer using its own database of loyal clients to see if interest and varying levels of concern towards CSR actions correlate with the level of loyalty and satisfaction. Our hypothesis is that a socially responsible image could strengthen the relational bonds (utilitarian and symbolic) between consumers and retailers.

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