Do corporate social responsibility activities enhance customer satisfaction and customer loyalty? Evidence from the Saudi banking sector

Al-Ghamdi, Shumookh Abdul Aziz; Badawi, Nada Saleh

doi:10.1080/23311975.2019.1662932

Cited by 41 publications

(38 citation statements)

References 64 publications

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“…There are three distinct approaches to measure client loyalty, namely, behavioural, attitudinal and composite approaches (Buttle, 2009; Chun, 2009; Rai, 2013; Al-Ghamdi and Badawi, 2019). According to the behavioural approach, the frequent purchase of products or services indicates customer loyalty to the product, brand or company (Al-Ghamdi and Badawi, 2019; Ehrenberg, 2000). Measures of the behavioural approach are the number of purchases, the frequency of purchase and the possibility of purchase (Dick and Basu, 1994).…”

Section: Literature Review and Research Hypothesesmentioning

confidence: 99%

“…According to this approach, the client, therefore, has a strong and lasting emotional relationship with the company associated with a sense of loyalty and commitment (Buttle, 2009). The level of customer loyalty is measured by one or more of the following factors: intent to buy back, positive word-of-mouth, willingness to pay a high price and not to switch to another brand or company (Hayes, 2008; Al-Ghamdi and Badawi, 2019).…”

Section: Literature Review and Research Hypothesesmentioning

confidence: 99%

“…The composite approach combines the two previous approaches and measures loyalty through product preference, tendency to change brand or company, repeat purchases and total purchases (Wong et al , 1999; Al-Ghamdi and Badawi, 2019). In our study, we will adopt the composite approach to measure customer loyalty.…”

Section: Literature Review and Research Hypothesesmentioning

confidence: 99%

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Corporate social responsibility and financial performance: bidirectional relationship and mediating effect of customer loyalty: investigation in Sweden

Hichri

Ltifi

2021

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Purpose The study is based on a hybrid model composed of accounting and business data and is amongst the first to test the impact of corporate social responsibility (CSR) performance on the financial performance of the company, as well as the impact of financial performance on CSR performance. The bidirectional logic chosen by the study is rarely adopted in the global context and has never been tested in the Swedish context. Moreover, the purpose of this paper is to test the mediating effect of customer loyalty on the company’s CSR performance-financial performance relationship to assess this effect over the long term. This design has been neglected in previous studies. Design/methodology/approach Data was collected from a sample of 110 Swedish companies during the period 2009–2019. This study collects the data from the Thomson Reuters Eikon database. A multiple regression analysis was performed to test the hypotheses. Findings The results confirmed the bidirectional relationship between CSR performance and company financial performance. This means that CSR performance positively influences the company’s financial performance. Similarly, financial performance positively influences the company’s CSR performance. Moreover, customer loyalty has a positive and significant mediating effect on the company’s CSR performance-financial performance relationship. Originality/value This study adds several inputs. The first contribution of the research is to test a hybrid model composed of accounting and commercial data. This model is amongst the first to test the impact of CSR performance on the financial performance of the company and the impact of financial performance on CSR performance. The second contribution is the bidirectional logic chosen by the study which is rarely adopted in the global context and has never been tested in the Swedish context. The third contribution is to test the mediating effect of customer loyalty on the company’s CSR performance-financial performance relationship to assess this effect over the long term. This design has been neglected in previous studies. The fourth contribution is the choice of the field of investigation for the reliability of the data used and the generalisation of the results obtained.

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Section: Literature Review and Research Hypothesesmentioning

confidence: 99%

Section: Literature Review and Research Hypothesesmentioning

confidence: 99%

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Corporate social responsibility and financial performance: bidirectional relationship and mediating effect of customer loyalty: investigation in Sweden

Hichri

Ltifi

2021

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“…In response, food chains, including restaurants and hotels, minimize their social and ecological impacts. It has been noticed in the extant literature that product attributes such as price and quality are no longer the main reasons for competitive advantages; instead, corporate social and ethical practices have also appeared to stimulate customer responses [6]. Customers seem to look for observable signals such as CSR activities to determine desirable outcomes (e.g., how caring the company is).…”

Section: Introductionmentioning

confidence: 99%

Corporate Social Responsibility and Customer Loyalty in Food Chains—Mediating Role of Customer Satisfaction and Corporate Reputation

Ali¹,

Latif

et al. 2021

Sustainability

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The study examined the role of perceived CSR in deriving customer loyalty by exploring direct and mediated effects of corporate reputation and customer satisfaction in Pakistan’s food chains. The data were collected through a survey method from 322 customers of McDonald’s in Pakistan during October 2019 and January 2020. The collected information was then analyzed through the Partial Least Square Structural Equation Modeling (PLS-SEM) technique to test the hypothesized relationships. The results revealed a significant positive impact of perceived CSR on customer loyalty, corporate reputation, and customer satisfaction. Further, customer satisfaction and corporate reputation appeared to mediate the relationship between perceived CSR and customer loyalty.

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“…Therefore, they suggest that the firm should allocate adequate resources for CSR activities. Many past studies found that customers appreciate a firm that spends resources on marketing environment-friendly products and contributes to society's betterment (Al-Ghamdi & Badawi, 2019). Consequently, customers develop sustainable relationships with such firms and encourage their peers to purchase from them (Dabor, 2019).…”

Section: Csr and Customer Loyaltymentioning

confidence: 99%

Corporate Social Responsibility and Customer Loyalty: Exploring the Role of Satisfaction and Corporate Image in the Banking Industry

Ahmad

Jawaid

Arshad

et al. 2021

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This study aims to determine the impact of corporate social responsibility on customerloyalty and satisfaction with the mediating effect of customer satisfaction and the moderatingeffect of corporate image in Pakistan’s banking sector. The study collected 302 responsesfrom the target population. We used a self-administered questionnaire for collecting thedata of banking customers in Pakistan by employing the convenience sampling technique.The study has used the PLS-SEM technique for statistical analysis. The results reveal thatcorporate social responsibility positively influences customer satisfaction. The results alsosuggest that CSR positively affects customer satisfaction. At the same time, CSR has aninsignificant association with customer loyalty. We also found that CS stimulates customerloyalty, and corporate image promotes CL. The results suggest that customer satisfactionmediates CSR and CL. We also found that corporate image does not moderate customerloyalty. Given the importance of CSR, we suggest that banks should allocate considerableresources for CSR activities. CSR is necessary for firms’ growth and sustainability. It also,directly and indirectly, affects the brand image, loyalty, and customer satisfaction. Due to strict regulations, banks have difficulty creating product differentiation; therefore, they relyon strategies such as CSR.

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Do corporate social responsibility activities enhance customer satisfaction and customer loyalty? Evidence from the Saudi banking sector

Cited by 41 publications

References 64 publications

Corporate social responsibility and financial performance: bidirectional relationship and mediating effect of customer loyalty: investigation in Sweden

Corporate social responsibility and financial performance: bidirectional relationship and mediating effect of customer loyalty: investigation in Sweden

Corporate Social Responsibility and Customer Loyalty in Food Chains—Mediating Role of Customer Satisfaction and Corporate Reputation

Corporate Social Responsibility and Customer Loyalty: Exploring the Role of Satisfaction and Corporate Image in the Banking Industry

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