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.

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 Ethics, 61(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

Naše gospodarstvo/Our economy

Journal of contemporary issues in economics and business

Journal Information

Cited By

Metrics

All Time Past Year Past 30 Days
Abstract Views 0 0 0
Full Text Views 722 712 75
PDF Downloads 453 452 37