Corporate Social Responsibility as a Mediator of the Effect of Brand Awareness and Corporate Reputation on Customer Loyalty

Abstract

Factors that promote customer loyalty are of great concern to the banking sector because loyalty predicts business success. The purpose of this study is to examine the mediation role of corporate social responsibility on the effect of brand awareness and corporate reputation on customer loyalty. Data was collected through a cross sectional survey from 405 bank customers. Research hypotheses were tested using the structural equation model. The findings show that corporate social responsibility partially mediates the effect of both brand awareness and corporate reputation on customer loyalty. The results indicate that corporate social responsibility plays a vital role within the banking sector as it mediates the effect of brand awareness and corporate reputation on customer loyalty. If banks engage in successful corporate social responsibility practices, brand awareness and corporate reputation are enhanced and this result in improved customer loyalty. By empirically examining corporate social responsibility as a mediator on the effect of brand awareness and corporate reputation on customer loyalty the study seeks to contribute to the scholarly conversation.

The impact of Islamic tourism on the satisfaction of local tourists

“…It can be measured through consumer repurchase behaviour for the same brand (Ferreira and Coelho, 2015). Previous researchers (Chikazhe et al, 2020;Ferreira and Coelho, 2015) asserted that brand loyalty measures the tendency of customers to switch brands, especially when brands change their offerings or features in terms of price, quality and quantity. A study by Eid (2015) stated that customer loyalty can be broken down into two categories: short-term and long-term brand loyalty.…”

“…Brand awareness and advertising have a positive influence and a significant correlation with brand reputation. It has been founded by Chikazhe et al (2020) that corporate social responsibility acts as an intermediary between brand awareness, brand reputation and customer loyalty. The three variables were found to be statistically significant.…”