The Effect of Corporate Social Responsibility on Customer Trust and Loyalty (original) (raw)
Related papers
2015
The present paper aims at confirming the influence of CSR policies on building up customer relationship through improving trust and commitment, and at the same time to study the influence of these values on satisfaction and loyalty. To achieve this purpose, a causal model that establishes the relationship between those variables has been developed and empirically tested. In order to verify the proposed hypothesis a structured survey was developed. The survey was given to a sample of 501 customers (valid responses) of modern distribution retail stores (supermarkets and hypermarkets) in Spain. All hypotheses are supported, thus confirming that the consumer perception on CSR policies carried out by the retailer influence on trust and consumer commitment to the company. As these variables affect satisfaction and loyalty, these results also confirm the indirect influence of CSR on customer satisfaction, through these relational variables. Therefore CSR is an essential tool for developing...
It is an indisputable fact that Corporate Social Responsibility (CSR) has emerged in recent years, as both an important academic construct and a pressing corporate agenda item. A number of researchers have emphasized the crucial role of CSR initiatives in providing the companies with a series of benefits. From a marketing perspective, some of the benefits for socially responsible companies are higher purchase intentions and advocacy behavior, like positive Word of Mouth. Considering the growth of CSR initiatives by companies it becomes important to understand better the consumers’ reactions to them. This paper seeks to examine the relative importance that consumers attach to CSR and CSR initiatives and their impact on consumer behavior in the Greek mobile telecommunication industry. The results indicate that Greek consumers consider the CSR very important, rank the CSR initiatives which focus on the environmental protection highly, are willing to change service provider for a more social responsible one and last but not least, they are more sensitive to negative CSR publicity than the positive one.
2018
Corporate social responsibility plays a significant role in getting sustainable edge over competitors, gaining profits and enhancing business affairs with customers. The purpose of the study is to analyze the perception of consumers regarding the CSR and its impact on customers’ loyalty while trust mediates the link in the telecom context of Pakistan. The adopted questionnaire circulated among customers’ of different telecom companies through non probability sampling technique. The model was validated by confirmatory factor analysis through AMOS and hypotheses were investigated via path analysis. Findings revealed that CSR has a positive impact on customers’ loyalty and confirmed the mediating impact of trust between the association of CSR and customers’ loyalty. The current study provides literature regarding CSR, customer’s loyalty and trust that would be very useful for the marketing personnel of telecom companies in enhancing customers’ loyalty and trust by improving CSR practic...
The impact of corporate social responsibility on brand loyalty
Journal of Governance and Regulation, 2015
This article describes corporate social responsibility (CSR) as an organisational tool whose successful implementation can be used to gain brand loyalty. The benefits of CSR to society have been well documented to a great extent. However, there is very little information on the benefits of it to the actual corporations that practice it. This lack of knowledge is what motivated the study on which this article is based. The key objectives of the study for the article were to determine consumer attitudes towards specific CSR programs, determine the impact of CSR on brand image and brand loyalty and determine what kinds of CSR programs are considered to be adequate by consumers to qualify as socially responsible. A quantitative survey was done using customers of the South African mobile phone service provider Vodacom. A self administered questionnaire was used as the primary data collection instrument. The main findings of the study were that although most consumers were not aware of wh...
This study aims at examining the impact of Corporate Social Responsibility (CSR) on Customer Loyalty (CL) within the Telecommunication sector in the State of Qatar, the market in Qatar consists of two telecommunication providers; Ooredoo Qatar and Vodafone Qatar. Moreover, the study examines whether selected demographics (gender, age, income level and educational level) play any role in moderating the potential relation between CSR and CL. In order to accomplish this, the study utilized a descriptive analytical methodology and a quantitative research approach utilizing survey strategy. Using personally submitted questionnaires, 476 filtered and screened questionnaires were analyzed using SPSS software. The study revealed that customers perceived CSR activities as an essential element for them and for the operating organizations as well, moreover their awareness of such activities was salient through their responses to the questionnaire in place, and as a result, CSR activities were found to have a positive direct significant impact on CL. As for the suggested demographics, gender, age, and educational level didn’t play any significant effective role in moderating the impact of CSR on CL. On the other hand, the Income Level slightly enhanced the original relationship between CSR and CL, as the higher the income level, the more CSR activities impact CL. Based on the results of the study, the researchers recommend that telecommunication providers should continue conducting CSR activities and focus more on ethical, economic, and environmental dimensions of CSR. Providers should also work on communicating their CSR activities to the public and customers to increase customer loyalty and maintain their market share. Recommendations for future research based on the results are also provided.
Enhancing Customer Loyalty towards Corporate Social Responsibility of Thai Mobile Service Providers
—The aim of this research is to develop the understanding of corporate social responsibility (CSR) from consumers' perspective toward Thai mobile service providers. Based on the survey from 400 mobile customers, the result shows that four dimensions of CSR of Thai mobile service providers consist of economic, legal, ethical and philanthropic responsibility. These four CSR factors have positive impacts on enhancing customer satisfaction except one item of economic responsibility-profitability to shareholders. Ethical dimension has the strongest impact on customer satisfaction. Economic, legal, ethical, philanthropic responsibility and customer satisfaction have major impact on loyalty, whilst philanthropic component mostly affects loyalty.
Corporate Social Responsibility as a Factor Promoting Customer Loyalty in the Latvian Retail Sector
European Integration Studies
The retail sector is an important engine of the national economy and an indicator of the development of the national economy. Over the last ten years, the total retail turnover index has increased by 31%, which highlights the acquisition of competitive advantages. Businesses need to fight strategically for consumers in an environment where information and services are widely available. Promoting customer loyalty is important for companies, but with the realization of responsible and sustainable operations, corporate social responsibility is one of the ways to promote it. It is important to understand how important corporate responsibility is to consumers and what corporate social responsibility activities are now important to consumers to draw conclusions about their impact on customer loyalty. The aim of the current research is to identify corporate social responsibility activities that promote customer loyalty in the Latvian retail sector. In order to achieve the aim of the work, ...
How does corporate social responsibility create customer loyalty? The role of corporate image
Abstract Purpose – This paper aims to investigate whether corporate image has a mediating effect on the influence of corporate social responsibility (CSR) on customer loyalty in independent hotels. Design/methodology/approach – Data were collected from customers of five-star hotels located in Istanbul in Turkey. The theoretical model was tested with 404 usable data. The results were analyzed by using structural equation modeling (SEM). Findings – Findings show that CSR creates customer loyalty partially through corporate image in the independent hotels. In addition, it was found that the hotels included in the study carried out moderate level of CSR activities. Research limitations/implications – The research model was tested in independent five-star hotels. Further studies could be carried out using different independent hospitality companies. In addition, the research was conducted on a limited sample, as hotel managers were not willing to allow direct contact with customers. Further studies could be carried out on larger samples. Practical implications – This study recommends that independent hotels carry out more CSR activities on social and environmental issues. In addition, direct effect of CSR on customer loyalty is lower than its indirect effect via corporate image. Therefore, if companies desire to create customer loyalty through CSR, they should introduce their CSR activities to customers via communication tools (website, media etc.) Originality/value – This study examines CSR in terms of sustainable development in the independent hotels. Furthermore, it explains relationships between CSR and corporate image and customer loyalty through the principle of generalized reciprocity specified in the theory of social change. Keywords Corporate social responsibility, Customer loyalty, Corporate image, Sustainable development, Independent hotels Paper type Research paper
Journal of Business Research, 2017
Factors promoting loyalty are of great interest to both academics and practitioners because consumer loyalty is a notable predictor of business success. This study identifies the congruency between consumer values and the goals of corporate social responsibility (CSR) activities and corporate ethical standards as the two main determinants of CSR quality and commitment. It further investigates how consumer perceptions of CSR shaped by these two factors increase loyalty. The results of structural equation modeling analysis (N = 931) reveal that higher ethical standards leads consumers to perceive that the company is committed to its CSR activities. The company's CSR commitment induces greater satisfaction with and trust in the company and its services, which then ultimately encourages consumers to remain loyal.