Customer expectations of CSR, perceived service quality and brand effect in Thai retail banking

Abstract

PurposeThis paper aims to explore how social responsibility initiatives can influence perceived service quality and brand effect from the perspective of retail banking customers in Bangkok, Thailand. The paper also aims to examine the impact of trust as a mediating variable between perceived service quality and brand effect.Design/methodology/approachThe study is quantitative in nature, using the responses of 275 bank customers to a closed‐end questionnaire administered on a face‐to‐face basis by trained fieldworkers. The data analysis is performed by partial least squares (PLS), a second generation statistical SEM variance‐based modeling technique.FindingsThe results of the study demonstrate how corporate social responsibility (CSR) initiatives influence service quality perceptions and also examine CSR's impact on trust and affective attitudes of customers towards their banks. The study's hypothesized relationships were principally supported, i.e. perceived service quality is positively associated with brand effect mediated by trust. CSR initiatives play an important role in perceived service quality, which in turn, influences trust and brand effect. Finally, CSR is shown to be directly related to brand effect.Research limitations/implicationsWhile the results are clear and have strong salience to the retail banking industry in Thailand, applications of the findings beyond Thailand should take into account other factors such as the nature of retail banking industry, the perception, behavior and demographics of retail banking customers as well as the strategic focus of retail banking toward CSR.Practical implicationsThe study provides a set of findings relating to CSR initiatives that could be readily incorporated into a bank's corporate plan.Originality/valueTo the authors' knowledge, their study proposes an exhaustive review of CSR activities a company could use to best match its stakeholders' interests. Also the paper demonstrates the contribution of advanced modeling methodology to understanding key relationships in the financial services sector.

An Integrated Framework to Understand How Consumer-Perceived Ethicality Influences Consumer Hotel Brand Loyalty

“…Several authors have shown that consumer perception of CSR activities is positively related to affective commitment (e.g., Lacey andKennett-Hensel 2010, Turker 2009). In the banking sector, Poolthong and Mandhachitara (2009) found a positive impact of CSR on brand affect. Chomvilailuk and Butcher (2014) also found a positive influence of CSR performance on customer affective commitment.…”

A model of green bank marketing

“…Poolthong and Mandhachitara (2009) cite several studies illustrating that CSR may refer to charitable contributions, cause-related marketing and green marketing, including the environment, personnel and community support, corporate philanthropy, the disclosure of social information and representation of women and minorities. Portney (2008) discusses the new dimensions of CSR and refers to the various voluntary activities that companies undertake such as the energy consumption reduction and waste management, development of safer or healthier products, improvement of employees ' working conditions, or contribution to the communities in which companies are located.…”

“…Peterson and Hermans (2004) analyse social responsibility themes in US banking, by examining socially responsible advertisements, whereas Poolthong and Mandhachitara (2009) explore the effect of social responsibility initiatives on perceived service quality and brand effect in retail banking in Thailand. Scholtens (2009) examines the dimensions of CSR in banking and identifi es four groups of indicators about bank social responsibility.…”

Pengaruh Penerapan Corporate Social Responsibility terhadap Persepsi Nasabah Bank dan Dampaknya terhadap Corporate Image

“…Pada penelitian yang dilakukan oleh Poolthong & Mandhachitara (2008) pada beberapa nasabah Bank di Thailand dijelaskan bagaimana para nasabah semakin percaya dan terpengaruh persepsinya terhadap setiap bank yang melakukan kegiatan CSR. Hasil penelitian membuktikan bahwa CSR berkaitan secara langsung terhadap persepsi nasabah suatu bank.…”