A model of customer loyalty and corporate social responsibility

Abstract

PurposeThis paper aims to examine the roles of corporate social responsibility (a non service‐related concept) and perceived service quality (a service‐related concept) in determining the attitudinal and behavioral loyalty of customers in the retail banking sector in Bangkok, Thailand.Design/methodology/approachThe study is quantitative in nature using the responses of 275 bank customers who answered a survey questionnaire. Data analysis was performed using partial least squares (PLS), a variance‐based structural equation modeling method.FindingsThe results of the study demonstrate that corporate social responsibility (CSR) has a significantly strong and positive association with attitudinal loyalty. Perceived service quality mediated the relationship between CSR and repeat patronage intentions (behavioral loyalty). Direct effects were reported between perceived service quality and both attitudinal and behavioral loyalty. A positive relationship between attitudinal and behavioral loyalty was demonstrated.Research limitations/implicationsWhile the results are clear and have strong salience for the retail banking industry, future research should take into account the specific industry context within the national culture.Practical implicationsThe study provides a set of findings relating to CSR initiatives and perception of service quality that could be readily incorporated into banks' corporate strategic plans.Originality/valueThe paper demonstrates an empirical operationalization of CSR initiatives measured from the customers' point of view, and from which banks could learn for corporate strategy development.

An empirical examination of the relationships between service quality, satisfaction and behavioral intentions in higher education setting

“…Approachability of professors, having students' best interest at heart, professors' sincere interest in instilling knowledge, encouraging active participation of the students during the process of teaching and motivating students to do their best have been recognized as the main traits of professors' behavior which lead to students' perceptions of higher education service quality. This is in line with previously stated importance of service personnel' behavior and their relationship with customers for the perceptions of service quality (Parasuraman et al, 1985;Mandhachitara & Poolthong, 2011). Satisfaction was measured by four items, similar to those used by Cronin et al (2000) and Chi and Gursoy (2009).…”

Bank customers’ preferences and responses to Corporate Social Responsibility (CSR) initiatives in Ghana

“…In an interview with customers on the value received from CSR, Green and Peloza (2011) found that, for the majority of the respondents, CSR that produces functional value (direct benefits) is the leading, and in many cases, the sole driver behind integrating CSR into their decision-making processes. However, in obtaining positive behavioural responses such as purchase intentions, Berens et al (2005, in Mandhachitara & Poolthong, 2011 found that CSR only has a significant effect on purchase intentions when the company competency is high. This confirms that positive responses to CSR result only when the basic requirements of product and service quality are present, which McDonald and Lai (2011) and Rashid et al (2013) classify as customer-centric CSR.…”

From CSR to Customer Loyalty: An Empirical Investigation in the Retail Banking Industry of a Developing Country

“…Thus, Walsh and Beatty (2007) found that American bank customers' satisfaction, loyalty and trust, are positively correlated with their perceptions of their banks' customer orientation. Also, Mandhachitara and Poolthong (2011) demonstrated that perceived customer orientation is significantly, strongly and positively associated with attitudinal loyalty among bank customers, service quality having a moderating effect on the relationship. Moreover, Matute-Vallejo et al (2011), after analyzing the Spanish retail banking sector, proved that customer loyalty is influenced by costumers' perceptions of their banks' price fairness, while Oberseder et al (2014) showed that purchase intentions in the Austrian retail banking sector is positively impacted by the extent to which banks are perceived as implementing fair sales practices, comprehensibly labelling services, meeting quality standards, and offering their customers safe products and the possibility to file complaints.…”

“…Being perceived as a good employer, or the extent to which a company is perceived as respecting the rights of its employees, setting safe and decent working conditions, offering adequate remuneration, training its employees, and communicating honestly with them, have been proven to be positively correlated with purchase intentions in the Austrian retail banking sector (Oberseder et al, 2014), or with repurchase and word of mouth intentions in the American financial services sector (Walsh and Beatty, 2007). Mandhachitara and Poolthong (2011) also found that customer loyalty in retail banking is affected by banks' employer brand image (offering a safe workplace, supporting employees' family values, and offering fair compensations and equal employment opportunities). Put together, these findings lead to the third research hypothesis of this study:…”

“…In what concerns service industries, in which case customer loyalty is more elusive and unpredictable as compared to other sectors (Vlachos and Vrechopoulos, 2012), most studies have been focused on industries such as: retail (Ailawadi et al, 2014, Gupta and Pirsch, 2008, Lombart and Louis, 2014, Vlachos, 2012, Vlachos and Vrechopoulos, 2012, Walsh and Bartikowski, 2013, banking (Choi and La, 2013, Chomvilailuk and Butcher, 2014, Mandhachitara and Poolthong, 2011, Marin et al, 2009, Matute-Vallejo et al, 2011, Salmones et al, 2009, Walsh and Beatty, 2007, and telecom (He and Li, 2011, Moisescu, 2015a, Salmones et al, 2005, Vlachos et al, 2009.…”