Relative importance of CSR in mobile telephony: A discrete choice analysis

Abstract

The argument is made that Corporate Social Responsibility (CSR) not only contributes to the welfare of society and the environment but also enhances consumers’ trust and reputation. This has sparked interest in understanding how much consumers value a company that incorpo-rates responsible practices, and how important it is compared to other product or business attrib-utes. In this context, the aim of the present study was to analyze the relative importance of CSR as a competitive attribute in consumer preferences within the mobile telecommunications sector in Chile, a dynamic sector that holds great impor-tance for the country. To achieve this, a survey was conducted, and a multivariate discrete choice model was employed to assess the significance of the CSR attribute in consumers’ purchasing decisions and their willingness to pay. The results reveal that CSR practices have a positive influence on consumer preferences and are collectively more important than business skills and price. Additionally, it was found that there is generally a favorable inclination to reward companies that adopt this manage-ment approach, although the willingness to pay a premium is minimal. In conclusion, establishing a business model based on CSR will positively impact purchasing preferences, but will not significantly increase willingness to pay.