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Does CSR Help to Retain Customers in a Service Company?

Author

Listed:
  • Juan Carlos Fandos-Roig

    (Department of Business Administration and Marketing, Universitat Jaume I, 12071 Castellón de la Plana, Spain)

  • Javier Sánchez-García

    (Department of Business Administration and Marketing, Universitat Jaume I, 12071 Castellón de la Plana, Spain)

  • Sandra Tena-Monferrer

    (Department of Business Administration and Marketing, Universitat Jaume I, 12071 Castellón de la Plana, Spain)

  • Luis José Callarisa-Fiol

    (Department of Business Administration and Marketing, Universitat Jaume I, 12071 Castellón de la Plana, Spain)

Abstract

The main aim of this paper is to analyze the influence of service companies’ corporate social responsibility (CSR) actions on final customer’s loyalty. A theoretical model of loyalty formation based on CSR was proposed and a sample of 1125 final customers of financial services in Spain was studied. Structural equation models were used to verify the hypothesized relationships. Based on the CSR theory oriented to stakeholders, this work justifies the direct and positive relationship between the perception of CSR actions in the shopping experience and customer trust. We also verified a positive indirect influence on loyalty. The services industry was chosen to conduct this research due to its own particularities (intangibility, inseparability, heterogeneity and perishability). As it is impossible to evaluate a service before its consumption, a high level of trust in the supplier will be necessary to motivate the purchase decision. We conclude that CSR becomes a key strategic asset for determining trust and loyalty among consumers. As major findings, we have verified the special importance of CSR in the services market. CSR improves customer trust in the service provider. Thus, this paper has significant managerial implications. Through CSR strategies, both the perception of the customer’s purchasing experience and trust can be enhanced, resulting in more loyal customers. As a limitation, this research was carried out among financial services. Further research should test the model across different industries and countries in order to determine the generalizability and consistency of the findings of this study.

Suggested Citation

  • Juan Carlos Fandos-Roig & Javier Sánchez-García & Sandra Tena-Monferrer & Luis José Callarisa-Fiol, 2020. "Does CSR Help to Retain Customers in a Service Company?," Sustainability, MDPI, vol. 13(1), pages 1-21, December.
    • Handle: RePEc:gam:jsusta:v:13:y:2020:i:1:p:300-:d:472882
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    References listed on IDEAS

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    Cited by:

    1. Chen Ma & Changjiang Yu & Yasir Latif, 2023. "CSR and Sustainable Growth in China’s Technology Firms between 2010 and 2021," Sustainability, MDPI, vol. 15(3), pages 1-24, January.

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