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Effects of quality and corporate social responsibility on loyalty

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  • Rojanasak Chomvilailuk
  • Ken Butcher

Abstract

The purpose is to investigate the impact of corporate social responsibility perceptions on three aspects of customer loyalty for a new bank service (Travel Card) relative to a recognised major predictor in service quality. Surveys were completed by 204 bank consumers in Australia. Using a series of regression equations, two sets of socially responsible perceptions had significant effects on purchase intention and positive word of mouth. In both cases, new socially responsible information was twice as strong a predictor as service quality. However, for affective commitment, service quality was the dominant predictor. Furthermore, existing perceptions of socially responsible performance had a negative effect on purchase intentions. The study presents the first evidence that new socially responsible perceptions for a service firm can be a more powerful predictor than corporate abilities. The findings further illustrate the differential impacts of socially responsible information on different loyalty conceptualisations.

Suggested Citation

  • Rojanasak Chomvilailuk & Ken Butcher, 2014. "Effects of quality and corporate social responsibility on loyalty," The Service Industries Journal, Taylor & Francis Journals, vol. 34(11), pages 938-954, August.
    • Handle: RePEc:taf:servic:v:34:y:2014:i:11:p:938-954
    DOI: 10.1080/02642069.2014.915952
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    Cited by:

    1. Sakiyama, Ryo & Dony Dahana, Wirawan & Baumann, Chris & Ye, Mingqi, 2023. "Cross-industrial study on satisfaction-commitment-PWOM linkage: The role of competition, consumption visibility, and service relationship," Journal of Business Research, Elsevier, vol. 160(C).
    2. Mobin Fatma & Zillur Rahman, 2016. "Consumer responses to CSR in Indian banking sector," International Review on Public and Nonprofit Marketing, Springer;International Association of Public and Non-Profit Marketing, vol. 13(3), pages 203-222, October.
    3. Eloy Gil-Cordero & Juan Pedro Cabrera-Sánchez & Ignacio Cepeda-Carrión & Jaime Ortega-Gutierrez, 2021. "Measuring Behavioural Intention through the Use of Greenwashing: A Study of the Mediating Effects and Variables Involved," Sustainability, MDPI, vol. 13(12), pages 1-12, June.
    4. Mobin Fatma & Zillur Rahman, 2017. "An Integrated Framework to Understand How Consumer-Perceived Ethicality Influences Consumer Hotel Brand Loyalty," Service Science, INFORMS, vol. 9(2), pages 136-146, June.
    5. Oriol Iglesias & Stefan Markovic & Jatinder Jit Singh & Vicenta Sierra, 2019. "Do Customer Perceptions of Corporate Services Brand Ethicality Improve Brand Equity? Considering the Roles of Brand Heritage, Brand Image, and Recognition Benefits," Journal of Business Ethics, Springer, vol. 154(2), pages 441-459, January.
    6. Stefan Markovic & Oriol Iglesias & Jatinder Jit Singh & Vicenta Sierra, 2018. "How does the Perceived Ethicality of Corporate Services Brands Influence Loyalty and Positive Word-of-Mouth? Analyzing the Roles of Empathy, Affective Commitment, and Perceived Quality," Journal of Business Ethics, Springer, vol. 148(4), pages 721-740, April.
    7. Jose Ribamar Siqueira Junior & Enrique Horst & German Molina & Laura H. Gunn & Felipe Reinoso-Carvalho & Burcu Sezen & Nathalie Peña-García, 2023. "Branding in the eye of the storm: the impact of brand ethical behavior on brand commitment during the COVID-19 crisis in a South American country," Journal of Marketing Analytics, Palgrave Macmillan, vol. 11(1), pages 95-115, March.
    8. Ovidiu I. Moisescu & Oana A. Gică & Victor O. Müller & Camelia Ancuța Müller, 2019. "Can Corporate Fairness towards Public Authorities Enhance Customer Loyalty? A Multi-Sectorial Investigation in a Developing Country," Sustainability, MDPI, vol. 12(1), pages 1-14, December.
    9. Mobin Fatma & Imran Khan, 2023. "CSR Influence on Brand Loyalty in Banking: The Role of Brand Credibility and Brand Identification," Sustainability, MDPI, vol. 15(1), pages 1-13, January.
    10. Won‐Moo Hur & Hanna Kim & Hyun Kyung Kim, 2018. "Does customer engagement in corporate social responsibility initiatives lead to customer citizenship behaviour? The mediating roles of customer‐company identification and affective commitment," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 25(6), pages 1258-1269, November.
    11. Juan J. Nájera-Sánchez, 2019. "A Systematic Review of Sustainable Banking through a Co-Word Analysis," Sustainability, MDPI, vol. 12(1), pages 1-23, December.

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