The impact of corporate social responsibility on word of mouth through the effects of customer trust and customer commitment in a serial multiple mediator model

Author(s):  
Syed Azamussan ◽  
Shanmugam Munuswamy
2017 ◽  
Vol 9 (2) ◽  
Author(s):  
Christina Esti Susanti

In recent business competition, marketing managers try to satisfying consumers and building stable-long term relationship between company and consumer. The relationship needs consumer’s trust to company. That is why marketing managers are interested in knowing the impact of trust, loyalty and corporate social responsibility (CSR) toward customer retention (repurchase intention) in order to develop the long term profitability of the company. The long term relationship with consumers results in profitability and also impacts of survival and company development. In other word, trust influences toward loyalty and consumer retention. In the same moment, it is not surprising that academicians and practitioner effort to understand trust, customer loyalty, repurchase intention and CSR. This research examines firstly, influence of customer trust toward customer loyalty. Secondly, the research examines influence of customer loyalty toward repurchase intention. Thirdly, the research examines the role of perceived CSR as a moderating variable on the influence customer trust toward customer loyalty. The packaged-drinking water Aqua is taken as the research context because the Aqua company have donated 10 litter clean water in East Indonesia for each of one litter consumer buying. The result of the research shows that perceived CSR play a strong and positive role of influencing trust toward loyalty. Otherwise, trust influences strongly toward loyalty and loyalty influences strong enough toward repurchase intention. The result is expected to give managerial benefit for Aqua Company and also theoretical development in marketing related to the moderation role of perceived CSR in the influence of trust toward loyalty and repurchase intention.


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.


Author(s):  
Lindiawati . ◽  

Corporate Social Responsibility (CSR) has been becoming more attention for both companies and consumers. People are more aware of giving consideration on what companies have been doing for public as the representative of their responsibilities, and they use this to make buying decision and producing word-of-mouth. Corporate Social Responsibility has also been involved in banking industry since bank is an industry that is considered fragile or very easy to be affected by publis psychology leading bank customers then rush during a negative issue impacting the bank industry. By the government regulation pushing the banks to implement CSR, the kinds of CSR activities must reflect what banks wanth to achieve. Based on some studies on CSR impacts, it has been identified that the impact of CSR activities can be classified into four categories namely: phylanthophy, promotion, business impact, and mindset change. By knowing the map of the banks’ CSR activities based on those four categories, it can be concluded the competitiveness of the bank especially from the perspective of their social exposures. The result shows There are four banks that have well implemented CSR in term of that they have many CSR activities and whose impact levels are high. Three of of the four banks, have completed CSR whose impacst are complete, namely philanthropy, promotion, Business Impact, and Mindset Change.


2022 ◽  
Vol 5 (2) ◽  
pp. 110-128
Author(s):  
Jawad Farisi ◽  
Gancar Candra Premananto

At the end of 2019, a global pandemic began to hit the whole world, including Indonesia. This seems to have influenced the consumer confidence index. Consumer confidence in current economic conditions has weakened due to weakening incomes and reduced job availability. The existence of problems related to the decrease in the level of consumer confidence will be very detrimental to the company if the solution is not immediately considered. The purpose of this study was to examine and analyze the effect of corporate social responsibility on corporate reputation, word of mouth and customer trust as well as the effect of corporate reputation and word of mouth on customer trust. This research applies a quantitative approach with the type of research applied is causal research. The population in this study were 344 consumers of PT Petrokimia Gresik (PG), while the sample used in the study was 185 people.Data analysis in this study uses inferential statistics, which is an analysis aimed at proving the hypothesis using structural equation modeling - AMOS. The results of this study found that corporate social responsibilityprovides a significant effect on corporate reputation, word of mouth and consumer trust. Then corporate reputation and word of mouth are also proven to have a significant effect on consumer trust.


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