Do perceived CSR initiatives enhance customer preference and loyalty in casinos?

Abstract

Purpose – This study aims to investigate how perceptions associated with corporate social responsibility (CSR) initiatives influence customers’ preference and loyalty in a controversial consumer market. The mediating effect of brand preference between perceived CSR initiatives and customer loyalty is also examined. Design/methodology/approach – The methodology in the current study involves the use of questionnaire surveys delivered to a convenience sample in the city of Macau in 2012. A total of 616 valid samples were collected among casino players in a high bet limit area in six major casinos. Regression analysis was used to test the hypotheses formulated for carrying the study forward. Findings – The findings indicated that customers’ brand preference can be enhanced by their perceptions on CSR. Two CSR initiatives (stakeholders and society) significantly increase loyalty intention, although to varying degrees. The impact of CSR on stakeholders has a stronger influence on customers’ brand preference. Another important finding of the current study is the fact that brand preference is a partial mediator of perceived CSR initiatives and customer loyalty. Research limitations/implications – This study verified the relationship among CSR initiatives perception, brand preference and loyalty intention in the context of the Macau gaming industry. Perceived CSR initiatives enhance customer loyalty. Additionally, this study found a partial mediating effect of brand preference between CSR perception and customer loyalty. Practical implications – Customer loyalty can be enhanced with companies’ appropriate investments in social responsibilities. Although a socially responsible brand image of a company is not guaranteed to be a competitive advantage that attracts more premium customers, there is a general consensus that it may result in the latter with appropriate CSR strategies involving the greatest attention directed toward improving stakeholders’ interests. From the marketing perspective, retaining premium customers with a higher brand preference level is a key to both long-term competitiveness and profitability. Originality/value – This study investigates how premium customers’ perceived CSR initiatives of a casino influence their loyalty intention, and also examines how brand preference, as a mediator, influences the relationship between perceived CSR and loyalty intention. Extending the realm of CSR study to understand the linkage between CSR and customer behaviors is also important because multiple theories predict different benefits, and assessing the value of CSR, therefore, requires multiple approaches. Finally, evidence from the research is significant for researchers and practitioners, especially when working on conflicting issues.

The mediating role of affective commitment between corporate social responsibility and eWOM in the hospitality industry

“…In this case, because of increasing awareness of environmental issues in the global hotel industry, consumers display strong purchase intention and positive behaviour towards organizations that adopt environmentally friendly practices (Kasim, 2004). Also, the significant positive link between customers' perception of the hotel stakeholder CSR and their positive eWOM confirms previous research that revealed how stakeholders' CSR activities affect customers' WOM (Liu et al, 2014b;Markovic et al, 2018). The explanation might be that customers, as hotel stakeholders, see CSR stakeholder activities relevant to themselves and therefore as more valuable (Liu et al, 2014b).…”

“…Regarding the link between stakeholders' CSR activites and customers' positive eWOM, Liu et al (2014b) found this to be more relevant, and therefore more valuable, to hoteliers. Vlachos et al (2009) similarly stated that CSR activities related to stakeholders could improve customer trust and reduce any scepticism about the organization, leading to stronger positive recommendations.…”

“…The growing awareness of this issue has led hoteliers to develop and promote social and environmental initiatives to attract travellers who are aware of their interest, manifest through CSR activities (Ghaderi et al, 2019;Mart ınez et al, 2018;Mohammed & Al-Swidi, 2019;Mohammed & Rashid, 2018;Palacios-Florencio et al, 2018). CSR concerns a firm's activities and attitude in relation to its obligations towards the environment, stakeholders and the society in which it operates (Liu et al, 2014b). Online reviews can be used to assess customers' level of CSR consciousness, expressed in their opinions about a hotel's attention to CSR issues (D'Acunto et al, 2020).…”

Corporate social responsibility and employee performance: The mediating role of employee engagement in the manufacturing sector of Pakistan

“…In the context of shareholders, studies documented the CSR association with the corporate image (Ali, Danish, & Asrar‐ul‐Haq, 2020), reputation (Branco & Rodrigues, 2006; Javed, Rashid, Hussain, & Ali, 2020), and performance (Alafi & Hasoneh, 2012; Galbreath & Shum, 2012; Margolis, Elfenbein, & Walsh, 2009). From the customer perspective, studies examined the association between CSR and customer satisfaction (Lee & Heo, 2009; Saeidi, Sofian, Saeidi, Saeidi, & Saaeidi, 2015; Xie, Jia, Meng, & Li, 2017) and customer loyalty (Tingchi Liu, Anthony Wong, Rongwei, & Tseng, 2014). Past studies have also reported evidence about CSR and employee association through various behavior factors, that is, job satisfaction (Asrar‐ul‐Haq, Kuchinke, & Iqbal, 2017), organizational identification (Cheema, Afsar, & Javed, 2020), turnover intentions (Kim, Song, & Lee, 2016; Lin & Liu, 2017), and organizational commitment (Mory, Wirtz, & Göttel, 2016).…”

Behavioral and psychological consequences of corporate social responsibility: need of the time

“…In literature, CSR is studied in varying industries, from various perspective, like environmental practices and green programs are major concern for hospitality industry as they directly influence corporate financial performance and value (Lee and Heo, 2009;Lee and Park, 2009). Further, in hotel industry, CSR is mostly studied for its consequences from customers' (Liu et al, 2014;Yueying, 2014;Lee et al, 2012), and/or firms' perspective Lee et al, 2013;Garay and Font, 2012; de Grosbois, 2012), but there is dearth of literature focusing on the employees' perspective (Fu et al, 2014;Lee et al, 2012).…”