The Effect of Corporate Social Responsibility on Customer Loyalty in Mobile Telephone Companies

Abstract

Purpose: The present study aims at developing and empirically testing a research model that presents the influence of Corporate Social Responsibility on corporate image, customer satisfaction and customer loyalty, demonstrating the direct and indirect effects among these structures. Design/Methodology/Approach: The examination of the proposed research model was carried out using a structured questionnaire completed by 358 mobile users in the city of Kavala. The validity and the reliability of the questionnaire were examined, while for the data analysis the Structural Equation Modeling Technique was used with LISREL 8.80. Findings: The findings of this study indicate that Corporate Social Responsibility have not a significant direct effect on customer loyalty, while corporate image and customer satisfaction have a significant positive effect on customer loyalty. Moreover, the findings provide practical new insights in understanding how a mobile company's CSR policy could be developed and implemented to help enhance customer loyalty through the mediating effects of customer satisfaction. Practical Implications: The companies would like to understand the implications of its CSR policy implementation, especially in enhancing its corporate image and customer satisfaction in terms of reputation and impression. Originality/Value: This study is a pioneer research in addressing the mediating role played by customer satisfaction for strengthening the relationship between CSR and customer loyalty in mobile phone companies.

The Effects of Corporate Social Responsibility on Customers’ Loyalty in Lao PDR

“…In other words, it helps to increase and better customers' loyalty through building good reputation and closer relationship with existing customers and penetrating vaster customer groups, namely Lao Telecom has supported "Good-Things-Project for Lao Society" in mitigating the plastic use, Garbage Collection Project for Clean City and other environmental activities. Unlike (Dimitriadis & Zilakaki, 2019) depicted a negative influence and not statistical significance of environmental accountability on customers' loyalty. Hence, it is epitomized that environmental responsibility plays a crucial role in fostering the long-term sustainable business performance and being a key to make customers' loyalty consciousness on service sector as well as Lao Telecom company, it can increase loyalty through corporate environmental activities, environmental stewardship involving in business operation and it is imperative for company/organization to take initiative in reducing the environmental degradation in order to achieve long-term business profit.…”

“…Empirical studies asserted a positive impact of environmental factor on customers' loyalty (Moisescu & Gică, 2020) and also suggested the need to consider other service sectors from developing countries. By way of contrast, another scholar discovered that environmental responsibility was negatively influenced but not statistically significant on customers' loyalty (Dimitriadis & Zilakaki, 2019); the paper also recommended to explore for disparate sectors; while there was a strong influence for the impact of CSR components on Chinese customers' loyalty (Liu et al, 2019); customer environmental satisfactions and environmental friendliness of the company has a statistical significance and positive impact on customer loyalty (Mohd Suki, 2015). Similarly, CSR activities in term of environmental responsibility plays a major part in pushing the long-term sustainable business performance and being a key to build customers' consciousness on products/services namely service sector, which environmental responsibility can increase more and more customers' loyalty through corporate environmental activities, a cleaner environment, environmental stewardship involving in business operation and taking initiative in reducing the environmental degradation and so on.…”

The effects of corporate governance on the customer’s recommendations: a study of the banking sector at the time of COVID-19

“…According to Minkiewicz et al (2011), corporate branding is defined in the literature as the pure result of all the beliefs, impressions, experiences, feelings and knowledge that consumers have about a company (Dimitriadis and Zilakaki, 2019). Moreover, Srivastava and Sharma (2013) defined corporate image as "the set of impressions through which a product or service is known and which people describe, remember and relate to it".…”

“…Usually, a company's image consists of a functional and an emotional dimension. Where the former concerns the most tangible or real assets, such as the company's reputation, its service and its capabilities while the latter relates to the subjective feelings and impressions of an institution's clients (Chang and Yeh, 2017;Dimitriadis and Zilakaki, 2019).…”

“…Therefore, the image of the company becomes a question of attitudes and beliefs about the customer's satisfaction. Moreover, some empirical studies have examined the impact of the company's image on the customer's satisfaction (Dimitriadis and Zilakaki, 2019). In general, a favourable corporate image of a company has a positive impact on the intention and behaviour of consumers towards the products or services in question.…”