Corporate social responsibility and service innovation on customer loyalty

2015 ◽  
Vol 33 (6) ◽  
pp. 823-839 ◽  
Author(s):  
Ying-Pin Yeh

Purpose – Customer loyalty is crucial for firms to generate positive returns. Creation of customer loyalty is a challenge for service firms because switching service firms can represent a risk. The purpose of this paper is to examine how wealth managers select and implement corporate social responsibility (CSR) and service innovation strategies to influence customer loyalty. Design/methodology/approach – A review of the related literature indicated that scant studies have determined the meanings and outcomes of CSR and service innovation. Therefore, the roles of CSR and innovation were examined in this study to evaluate how these factors affect customer loyalty in a wealth management context. The authors evaluated customer advocacy, relationship quality, and relationship value as mediating variables, and formulated six hypotheses. Data were collected using a questionnaire survey distributed to wealth management customers in Taiwan. All the hypotheses were verified using a structural equation model and data collected from the respondents. Findings – The results indicated that relationship quality and value are positively related to customer loyalty, and customer advocacy is positively related to both relationship quality and value. In addition, CSR and service innovation are positively related to customer advocacy. Research limitations/implications – This research was limited to collecting data related to specific service providers, and therefore consumers in other countries should be examined to test the robustness of the theoretical model. The results of analyses conducted on other industries and in other countries might differ. Practical implications – In the wealth management service context, CSR and service innovation capabilities contribute to customer advocacy, which can achieve superior relationship quality, relationship value, and customer loyalty. Originality/value – This paper contributes to investigations on the effect of CSR and service innovation on customer loyalty by adopting customer advocacy, relationship quality, and relationship value as mediators.

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Niki Glaveli

Purpose This study aims to uncover the underlying multiple intervening mechanisms between corporate social responsibility (CSR) and customer loyalty. Social identity and social exchange theories offer the ground for prediction that the primary outcomes of CSR initiatives are customer–company (C–C) identification and customer trust, which in turn affect customer loyalty. Also, the differential effect of CSR behaviors toward specific stakeholder groups on customer attitudes and behaviors are examined. Design/methodology/approach Data were collected from 333 customers of telecommunication companies in Greece. Structural equation modeling was used to test the postulated relationships. Findings The findings demonstrate that both C–C identification and customer trust intervene in the relationship between customer perceptions of CSR and customer loyalty; however, the identification mechanism is stronger than the trust mechanism in building customer loyalty while C–C identification seems to drive customer trust. Moreover, out of the three CSR components (customers, employees, and society/environment) that were considered as relevant to customers and were investigated, customer-centric activities were found to be the stronger predictor of both C–C identification and customer trust. Also, CSR toward society/environment was found to positively influence C–C identification. Practical implications The findings of this research can assist practitioners in effectively conceptualizing CSR image from a customers’ point of view and designing their company’s CSR and communication strategies to boost positive customer responses and strong long-term relationships. Originality/value The current study provides further insights into the complex relationship between CSR and customer responses and the impact that different CSR activities may have on customers.


2019 ◽  
Vol 16 (5) ◽  
pp. 671-689 ◽  
Author(s):  
Morteza Akbari ◽  
Maryam Mehrali ◽  
Nader SeyyedAmiri ◽  
Niloofar Rezaei ◽  
Afsaneh Pourjam

Purpose In the current era, businesses and customers are becoming increasingly concerned with social and environmental issues, and unlike the past, the main focus is not merely on economic growth. As new customers are getting more informed and responsible toward their surroundings, it is necessary for enterprises to act responsibly to attract responsible customers. Therefore, this paper aims to investigate the impact of corporate social responsibility (CSR) on brand positioning and customer loyalty in travel agencies in Tehran, Iran. Design/methodology/approach Through quota sampling, 86 agencies are selected and a number of 200 customers of those travel agencies are surveyed by means of purposive sampling. Findings The result reveals that CSR has a significant effect on loyalty of customers and brand positioning. In addition, the results indicate that all hypotheses have significant effects except for the C-C identification on customer loyalty. Practical implications Tourism managers should bear in mind that performing CSR activities is not merely a cost burden but a viable strategy for creating competitive advantage. They should adapt their CSR activities to the industry environment. Originality/value The study provides important evidence about CSR and their role in brand positioning and customer loyalty in tourism industry. In addition, the study contributes to the literature by developing the link between CSR and brand positioning.


2015 ◽  
Vol 29 (1) ◽  
pp. 15-25 ◽  
Author(s):  
Andrea Pérez ◽  
Ignacio Rodríguez del Bosque

Purpose – The aim of the authors of this paper is to propose a cognitive – affective – conative sequential model to study how three dimensions of corporate social responsibility (CSR) image (society, customers and employees) impact customer affective (identification and satisfaction) and behavioural (recommendation and repurchase) responses in the banking industry. The authors also test how the type of company (savings banks vs commercial banks) moderates customer responses to these three dimensions of CSR image. Design/methodology/approach – A multi-group structural equation model is tested using information collected from 648 savings banks’ customers and 476 commercial banks’ customers in Spain. Findings – The findings demonstrate that the perceptions of customer-centric CSR initiatives positively and consistently impact customer identification with the banking institution, satisfaction, recommendation and repurchase behaviours in the savings and commercial banks’ samples. The dimensions of CSR image that concern the activities oriented to society and employees only positively impact customer responses in the savings banks’ sample. Practical implications – The findings of this study can assist scholars in creating more informative CSR-based loyalty models that take into consideration new variables (satisfaction and type of company) and better approaches to the conceptualization of CSR image (e.g. the formative approach). The findings can also assist savings and commercial banks in better designing their CSR and communication initiatives to benefit from customer affective and conative responses. Originality/value – The contributions of the paper are threefold: the authors include satisfaction as a new variable in the study of the CSR-based loyalty model; the CSR image is conceptualized as a formative construct, and this provides new justifications for the mixed results reported by previous scholars who have analysed the effects of CSR image on customer loyalty; and the authors explore the moderating role of the type of company on the CSR-based loyalty model proposed in the paper.


2018 ◽  
Vol 16 (1) ◽  
pp. 28-49 ◽  
Author(s):  
Ahmad Aljarah ◽  
Lawrence Emeagwali ◽  
Blend Ibrahim ◽  
Bashar Ababneh

Purpose The purpose of this paper is to examine the impact of corporate social responsibility (CSR) on customer relationship quality (RQ) based on three main aspects of RQ, namely, satisfaction, trust and commitment. Design/methodology/approach A quantitative meta-analysis of 80 unique effect sizes reported in 60 articles (n = 27,805) was conducted to determine effect sizes of the relationship between CSR and the aspects of RQ of the customer. Furthermore, the economic development has been examined as potential moderators between CSR and RQ. Findings Meta-analysis suggests that a positive relationship between CSR and the three studied aspects of RQ is well established; however, the strength of studied relationships has revealed variations in magnitude. Customer commitment was affected by CSR (r = 56) the most, closely followed by customer trust (r = 0.52), while customer satisfaction (r = 0.44) was affected the least. Moreover, the result of meta-regression shows that the economic development moderates only one relationship, CSR and trust. Originality/value Presenting a summary of the direction of primary research on the relationship between CSR and RQ, as no prior meta-analysis on the primary relationship has been conducted till date (to the best of the authors’ knowledge).


2017 ◽  
Vol 13 (2) ◽  
pp. 323-338 ◽  
Author(s):  
Richa Chaudhary

Purpose This paper aims to examine the influence of employees’ corporate social responsibility (CSR) perceptions on their engagement level at work. In addition, the study looks into the contingencies of the relationship by proposing and examining gender as moderator of the proposed relationship. Design/methodology/approach The study sample consisted of 187 business professionals from both public and private sector manufacturing and service firms operating in India. The study uses a non-experimental correlational field study design. The data were collected with the help of self-administered questionnaires via both personal visits to the organizations and internet-based questionnaire using snowball sampling. Hierarchical linear regression analysis was used to test the study hypotheses. Findings The study results clearly underscore the potential of firm’s involvement in CSR activities in influencing the employee attitude and behaviour at work. However, the study findings failed to show any significant effect of interaction between CSR and gender on employee engagement. Practical implications Given the positive association of CSR with employee engagement irrespective of gender differences as reflected in the study results, CSR can actually be used across the organizations as tool for talent management. Originality/value The study bridges the macro-micro divide and addresses to the need for micro level research in CSR stream by examining the influence of CSR perceptions on work engagement level of employees. The study advances existing body of knowledge beyond developed Western economies by exploring the strategic value of CSR in India, which presents a unique cultural context to look at.


2017 ◽  
Vol 13 (3) ◽  
pp. 409-427 ◽  
Author(s):  
Mert Gürlek ◽  
Ertugrul Düzgün ◽  
Selma Meydan Uygur

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.


2020 ◽  
Vol 43 (11) ◽  
pp. 1337-1370 ◽  
Author(s):  
Ali Raza ◽  
Raouf Ahmad Rather ◽  
Muhammad Khalid Iqbal ◽  
Umair Saeed Bhutta

Purpose This paper aims to address the need for a more in-depth empirical investigation of exploring the link between the adoption of corporate social responsibility (CSR) practices and different aspects of customer behavior in a developing country. This paper develops a research framework and assesses the mediating role of trust, customer-company identification (CCI) and electronic-service quality (E-SQ) between customer perceptions of CSR and customer loyalty. Design/methodology/approach Working with a sample of 280 banking customers in Pakistan, partial least square based structural equation modeling is used to test the conceptual model. Findings Surprisingly, results suggest that CSR is not directly related to customer loyalty, which is contradictory to previously established findings conducted in developed countries. Thus, confirming a full mediation of CCI, E-SQ and trust in enhancing the effect of CSR on customer loyalty. The study also confirms that CSR is positively related to E-SQ, and E-SQ also directly affects CCI. Practical implications Banks should adhere to honest CSR practices and effectively communicate and advertise these practices to increase awareness and knowledge among the customers. Similarly, banks should advance in technological expertise to generate customer identification, which then leads to their loyalty. Originality/value Previous studies conferred short-term customer’s reactions, such as purchase intention and brand image. Still, this research discusses the long-term effect of CSR on customer behavior, such as the loyalty of the customers. Moreover, this is the pioneer study that investigates how CSR actions influence customer perceptions about E-SQ and how electronic services affect customer identification with a bank.


2019 ◽  
Vol 31 (4) ◽  
pp. 925-943 ◽  
Author(s):  
Lan Li ◽  
Gang Li ◽  
Xue Yang ◽  
Zhilin Yang

PurposeThe purpose of this paper is to investigate the impact of corporate social responsibility (CSR) on the performance of service innovation (PSI), and the mediating effect of knowledge acquisition.Design/methodology/approachDrawing on social exchange and knowledge management theories, this paper establishes a relevant conceptual model and adopts a hierarchical regression analysis to examine the model with a data set of 298 firms from China.FindingsCSR positively affects the PSI; however, the effects vary when firms take responsibility for different stakeholders. CSR for the same group of stakeholders influences differently the short-term financial and long-term non-financial PSI, whereas knowledge acquisition mediates the impact of employee and customer CSR on PSI, but not the impact of community CSR on PSI.Practical implicationsManagers could improve the PSI of the firm by strategically assuming CSR and by managing corporate knowledge acquisition activities.Originality/valueThis study contributes to the service innovation literature by identifying the influence of particular types of CSR on PSI, and by highlighting the influencing mechanism of knowledge acquisition. It extends scholarly understanding of the antecedents of PSI as well as the business returns to CSR.


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