Does Customer Loyalty Depend on Corporate Social Responsibility?

Open access

Abstract

This paper presents the results of a study conducted to examine the dependence of customer loyalty on corporate social responsibility (CSR). CSR is a good opportunity for a company’s differentiation, but only if customers value the company’s efforts in this field. Loyalty is a primary goal of each company, but it is influenced by numerous factors. The goal of this paper was to examine if CSR influences customer loyalty as one possible factor. Based on the presented results, management recommendations are provided concerning business strategy, mission, and vision formulation, so companies can fulfill customers’ interests and gain their loyalty.

If the inline PDF is not rendering correctly, you can download the PDF file here.

  • Ailawadi K. L. Neslin S. A. Luan Y. J. & Taylor G. A. (2014). Does retailer CSR enhance behavioral loyalty? A case for benefit segmentation. International Journal of Research in Marketing 31(2) 156–167. https://doi.org/10.1016/j.ijresmar.2013.09.003

  • Akbar M. M. & Parvez N. (2009). Impact of service quality trust and customer satisfaction on customer loyalty. ABAC Journal 29(1) 24–38

  • Carroll A. (1979). A three dimensional conceptual model of corporate social performance. Academy of Management Review 4(4) 497–505. https://doi.org/10.5465/AMR.1979.4498296

  • Carroll A. (1991). The pyramid of corporate social responsibility: Toward the moral management of organizational stakeholders. Business Horizons 4(3) 1–20. https://doi.org/10.1016/0007-6813(91)90005-g

  • Carroll A. (2015). Corporate social responsibility: The centerpiece of competing and complementary frameworks. Organizational Dynamics 44 87–96. https://doi.org/10.1016/j.orgdyn.2015.02.002

  • Carroll A. (2016). Carroll’s pyramid of CSR: taking another look. International Journal of Corporate Social Responsibility 3(1) 1–8. https://doi.org/10.1186/s40991-016-0004-6

  • Carroll A. & Shabana K. (2010). Business case for corporate social responsibility: A review of concepts research and practice. International Journal of Management Reviews 12(1) 85–105 https://doi.org/10.1111/j.1468-2370.2009.00275.x

  • Chen F. Y. Chang Y. H. & Lin Y. H. (2012). Customer perceptions of airline social responsibility and its effect on loyalty. Journal of Air Transport Management 20 49–51. https://doi.org/10.1016/j.jairtraman.2011.11.007

  • Chung K. H. Yu J. E. Choi M. G. & Shin J. I. (2015). The effect of CSR on customer satisfaction and loyalty in China: The moderating role of corporate image. Journal of Economics Business and Management 3(5) 542–547. https://doi.org/10.7763/JOEBM.2015.V3.243

  • Crane A. Matten D. & Spence L. J. (2013). Corporate social responsibility in a global context. In A. Crane D. Matten & L. J. Spence (Eds.) Corporate social responsibility: Readings and cases in a global context (2nd ed.; pp. 3–26). Abingdon: Routledge.

  • Ćeha M. (2013). Analysis of application of the concept of corporate social responsibility in local business. Singidunum Journal of Applied Sciences 10(1) 1–10. https://doi.org/10.5937/sjas1301001C

  • Day G. (1969). A two-dimensional concept of brand loyalty. Journal of Advertising Research 9(3) 29–35.

  • European Commission. (2011). A renewed EU strategy 2011–14 for corporate social responsibility. Retrieved from http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=COM:2011:0681:FIN:EN:PDF

  • García de los Salmones M. M. Herrero A. & Rodríguez del Bosque I. (2005). Influence of corporate social responsibility on loyalty and valuation of services. Journal of Business Ethics61(4) 369–385. https://doi.org/10.1007/s10551-005-5841-2

  • Geoffrey B. Sprinkle G. B. & Maines L. A. (2010). The benefits and costs of corporate social responsibility. Business Horizons 53(5) 445–453. https://doi.org/10.1016/j.bushor.2010.05.006

  • He H. & Li Y. (2011). CSR and service brand: the mediating effect of brand identification and moderating effect of service quality. Journal of Business Ethics 100(4) 673–688. https://doi.org/10.1007/s10551-010-0703-y

  • Hockerts K. Casanova L. Gradillas M. Sloan P. & Jensen E. (2008). An overview of CSR practices response benchmarking report. INSEAD Working Papers Collection 67 1–50.

  • Ivanović-Đukić M. (2011). Promovisanje društveno odgovornog poslovanja preduzeća u Srbiji. Sociologija 53(1) 21–42.

  • Jobber D. & Fahy J. (2006). Osnovi marketinga (2nd ed.). Beograd: Data Status.

  • Kandampully J. & Suhartanto D. (2000). Customer loyalty in the hotel industry: the role of customer satisfaction and image. International Journal of Contemporary Hospitality Management 12(6) 346–351. https://doi.org/10.1108/09596110010342559

  • Kotler P. & Lee N. (2005). Corporate social responsibility: Doing the most good for your company and your cause. Hoboken NJ: John Wiley & Sons Inc.

  • Lee E. M. Park S. Y. Rapert M. I. & Newman C. L. (2012). Does perceived consumer fit matter in corporate social responsibility issues?. Journal of Business Research 65(11) 1558–1564. https://doi.org/10.1016/j.jbusres.2011.02.040

  • Maden C. Arikan E. Telci E. E. & Kantur D. (2012). Linking corporate social responsibility to corporate reputation: A study on understanding behavioral consequences. Procedia–Social and Behavioral Sciences 58 655–664. https://doi.org/10.1016/j.sbspro.2012.09.1043

  • Maheshwari V. Lodorfos G. & Jacobsen S. (2014). Determinants of brand loyalty: A study of the experience–commitment–loyalty constructs. International Journal of Business Administration 5(6) 13–23. https://doi.org/10.5430/ijba.v5n6p13

  • Marin L. Ruiz S. & Rubio A. (2009). The role of identity salience in the effects of corporate social responsibility on consumer behavior. Journal of Business Ethics 84(1) 65–78. https://doi.org/10.1007/s10551-008-9673-8

  • Marinković V. (2012). Marketinški aspekti satisfakcije i lojalnosti: orijentacija na potrošače u savremenom bankarskom poslovanju. Kragujevac: Ekonomski fakultet.

  • Park J. Lee H. & Kim C. (2014). Corporate social responsibilities consumer trust and corporate reputation: South Korean consumers’ perspectives. Journal of Business Research 67(3) 295–302. https://doi.org/10.1016/j.jbusres.2013.05.016

  • Perez A. García de los Salmones M. M. & Rodríguez del Bosque I. (2012). The effect of corporate associations on consumer behavior. European Journal of Marketing 47(1) 218–238.

  • Peterlin J. Dimovski V. Uhan M. & Penger S. (2011). Rethinking the corporate social responsibility in Slovenia: empirical evidence. Ekonomska istraživanja 24(4) 126–142. https://doi.org/10.1080/1331677X.2011.11517487

  • Seifert B. Morris S. & Bartkus B. (2004). Having giving and getting: slack resources corporate philanthropy and firm financial performance. Business and Society 43 135–161. https://doi.org/10.1177/0007650304263919

  • Sirdeshmukh D. Japdig S. & Berry S. (2002). Customer trust value and loyalty in relational exchanges. Journal of Marketing 66(1) 15–37. https://doi.org/10.1509/jmkg.66.1.15.18449

  • Srbljinović M. (2012). Utjecaj društvene odgovornosti poduzeća na ponašanje potrošača u Hrvatskoj. Zbornik Ekonomskog fakulteta u Zagrebu 10(2) 161–180.

  • Visser W. (2006). Revisiting Carroll’s CSR pyramid: an African perspective. In M. Huniche & E. P. Rahbek (Eds.) Corporate citizenship in developing countries—new partnership perspectives (pp. 29–56). Copenhagen: Copenhagen Business School Press.

  • Vlachos P. A. Tsamakos A. Vrechopoulos A. P. & Avramidis P. K. (2009). Corporate social responsibility: attributions loyalty and the mediating role of trust. Journal of the Academy of Marketing Science 37 170–180. https://doi.org/10.1007/s11747-008-0117-x

  • Weimer J. & Pape J. C. (1999). A taxonomy of systems of corporate governance. Corporate Governance: An International Review 7(2) 152–167. https://doi.org/10.1111/1467-8683.00143

  • Zeithaml V. A. Berry L. L. & Parasuraman A. (1996). The behavioral consequences of service quality. Journal of Marketing 60(2) 31–46. https://doi.org/10.2307/1251929

Search
Journal information
Cited By
Metrics
All Time Past Year Past 30 Days
Abstract Views 0 0 0
Full Text Views 978 673 25
PDF Downloads 613 425 12