IDEAS home Printed from https://ideas.repec.org/a/sae/sagope/v11y2021i4p21582440211067233.html
   My bibliography  Save this article

Connecting Corporate Social Responsibility (CSR) to Customer Loyalty: A Mediation Analysis in Hoteling Industry of Pakistan

Author

Listed:
  • Muhammad Usman Shah
  • Muhammad Farooq Jan

Abstract

This study examines the role of Corporate Social Responsibility (CSR) in enhancing customer loyalty by exploring direct and mediating effects of trust, credibility, and word of mouth. Cross-sectional data of 463 respondents was taken from Pakistan using an online survey because of the limitations of covid19. Hypotheses were tested using SmartPLS-3. Findings of the study revealed that CSR has affected customer loyalty significantly and positively. The mediating role of trust was found insignificant. Credibility and word of mouth were found as significant mediating variables in the linkage between CSR and Customer Loyalty. This study has provided a direction for the hoteling industry to incorporate CSR activities in their operation for gaining customer loyalty using empirical analysis. In this regard, this paper makes a significant contribution to the existing literature regarding the connections between CSR and customer loyalty with the help of trust, credibility, and word of mouth as mediators, which are not tested empirically in the existing literature.

Suggested Citation

  • Muhammad Usman Shah & Muhammad Farooq Jan, 2021. "Connecting Corporate Social Responsibility (CSR) to Customer Loyalty: A Mediation Analysis in Hoteling Industry of Pakistan," SAGE Open, , vol. 11(4), pages 21582440211, December.
    • Handle: RePEc:sae:sagope:v:11:y:2021:i:4:p:21582440211067233
    DOI: 10.1177/21582440211067233
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/21582440211067233
    Download Restriction: no
    File URL: https://libkey.io/10.1177/21582440211067233?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Yeon, Jewoo & Park, Inyoung & Lee, Daeho, 2019. "What creates trust and who gets loyalty in social commerce?," Journal of Retailing and Consumer Services, Elsevier, vol. 50(C), pages 138-144.
    2. Sri Gunawan & Sri Yunan Budiarsi & Sri Hartini, 2020. "Authenticity as a corporate social responsibility platform for building customer loyalty," Cogent Business & Management, Taylor & Francis Journals, vol. 7(1), pages 1775023-177, January.
    3. Bastian Popp & Herbert Woratschek, 2017. "Consumer–brand identification revisited: An integrative framework of brand identification, customer satisfaction, and price image and their role for brand loyalty and word of mouth," Journal of Brand Management, Palgrave Macmillan, vol. 24(3), pages 250-270, May.
    4. Dewi Trini & M. Noor Salim, 2018. "Customer Experience Marketing (CEM), Customer Satisfaction and Customer Trust Affects Customer Loyalty: A Study on Star Hotels in Jakarta Province," Business Management and Strategy, Macrothink Institute, vol. 9(2), pages 100-116, December.
    5. Su, Lujun & Pan, Yue & Chen, Xiaohong, 2017. "Corporate social responsibility: Findings from the Chinese hospitality industry," Journal of Retailing and Consumer Services, Elsevier, vol. 34(C), pages 240-247.
    6. Ghazal Shams & Mohsin Abdur Rehman & Sarminah Samad & Raouf Ahmad Rather, 2020. "The impact of the magnitude of service failure and complaint handling on satisfaction and brand credibility in the banking industry," Journal of Financial Services Marketing, Palgrave Macmillan, vol. 25(1), pages 25-34, June.
    7. E. Arikan & D. Kantur & C. Maden & E. Telci, 2016. "Investigating the mediating role of corporate reputation on the relationship between corporate social responsibility and multiple stakeholder outcomes," Quality & Quantity: International Journal of Methodology, Springer, vol. 50(1), pages 129-149, January.
    8. Park, Eunil & Kim, Ki Joon & Kwon, Sang Jib, 2017. "Corporate social responsibility as a determinant of consumer loyalty: An examination of ethical standard, satisfaction, and trust," Journal of Business Research, Elsevier, vol. 76(C), pages 8-13.
    9. Ahmad Aljarah & Lawrence Emeagwali & Blend Ibrahim & Bashar Ababneh, 2018. "Does corporate social responsibility really increase customer relationship quality? A meta-analytic review," Social Responsibility Journal, Emerald Group Publishing Limited, vol. 16(1), pages 28-49, December.
    10. Gudergan, Siegfried P. & Ringle, Christian M. & Wende, Sven & Will, Alexander, 2008. "Confirmatory tetrad analysis in PLS path modeling," Journal of Business Research, Elsevier, vol. 61(12), pages 1238-1249, December.
    11. Seojin Stacey Lee & Yaeri Kim & Taewoo Roh, 2019. "Modified Pyramid of CSR for Corporate Image and Customer Loyalty: Focusing on the Moderating Role of the CSR Experience," Sustainability, MDPI, vol. 11(17), pages 1-21, August.
    12. Shumookh Abdul Aziz Al-Ghamdi & Nada Saleh Badawi, 2019. "Do corporate social responsibility activities enhance customer satisfaction and customer loyalty? Evidence from the Saudi banking sector," Cogent Business & Management, Taylor & Francis Journals, vol. 6(1), pages 1662932-166, January.
    13. Imran Khan & Mobin Fatma, 2019. "Connecting the dots between CSR and brand loyalty: the mediating role of brand experience and brand trust," International Journal of Business Excellence, Inderscience Enterprises Ltd, vol. 17(4), pages 439-455.
    14. Ricardo Leiva & Ignacio Ferrero & Reyes Calderón, 2016. "Corporate Reputation in the Business Ethics Field: Its Relation with Corporate Identity, Corporate Image, and Corporate Social Responsibility," Corporate Reputation Review, Palgrave Macmillan, vol. 19(4), pages 299-315, November.
    15. Juan Andres Bernal‐Conesa & Carmen de Nieves Nieto & Antonio Juan Briones‐Peñalver, 2017. "CSR Strategy in Technology Companies: Its Influence on Performance, Competitiveness and Sustainability," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 24(2), pages 96-107, March.
    16. Raouf Ahmad Rather & Linda D. Hollebeek & Jamid Ul Islam, 2019. "Tourism-based customer engagement: the construct, antecedents, and consequences," The Service Industries Journal, Taylor & Francis Journals, vol. 39(7-8), pages 519-540, June.
    17. Theodoulidis, Babis & Diaz, David & Crotto, Federica & Rancati, Elisa, 2017. "Exploring corporate social responsibility and financial performance through stakeholder theory in the tourism industries," Tourism Management, Elsevier, vol. 62(C), pages 173-188.
    18. 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.
    19. Giacomo Boesso & Francesco Favotto & Giovanna Michelon, 2015. "Stakeholder Prioritization, Strategic Corporate Social Responsibility and Company Performance: Further Evidence," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 22(6), pages 424-440, November.
    20. Davvetas, Vasileios & Diamantopoulos, Adamantios, 2017. "“Regretting your brand-self?” The moderating role of consumer-brand identification on consumer responses to purchase regret," Journal of Business Research, Elsevier, vol. 80(C), pages 218-227.
    21. Hollebeek, Linda D. & Glynn, Mark S. & Brodie, Roderick J., 2014. "Consumer Brand Engagement in Social Media: Conceptualization, Scale Development and Validation," Journal of Interactive Marketing, Elsevier, vol. 28(2), pages 149-165.
    22. Khawaja Fawad Latif & Aymen Sajjad, 2018. "Measuring corporate social responsibility: A critical review of survey instruments," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 25(6), pages 1174-1197, November.
    23. Vicky Katsoni (ed.), 2015. "Cultural Tourism in a Digital Era," Springer Proceedings in Business and Economics, Springer, edition 127, number 978-3-319-15859-4, December.
    24. Yeonsoo Kim, 2017. "Consumer Responses to the Food Industry’s Proactive and Passive Environmental CSR, Factoring in Price as CSR Tradeoff," Journal of Business Ethics, Springer, vol. 140(2), pages 307-321, January.
    25. Su, Lujun & Swanson, Scott R. & Chinchanachokchai, Sydney & Hsu, Maxwell K. & Chen, Xiaohong, 2016. "Reputation and intentions: The role of satisfaction, identification, and commitment," Journal of Business Research, Elsevier, vol. 69(9), pages 3261-3269.
    26. Clark, Moira K. & Lages, Cristiana Raquel & Hollebeek, Linda D., 2020. "Friend or foe? Customer engagement’s value-based effects on fellow customers and the firm," Journal of Business Research, Elsevier, vol. 121(C), pages 549-556.
    27. 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.
    28. Oriol Iglesias & Stefan Markovic & Mehdi Bagherzadeh & Jatinder Jit Singh, 2020. "Co-creation: A Key Link Between Corporate Social Responsibility, Customer Trust, and Customer Loyalty," Journal of Business Ethics, Springer, vol. 163(1), pages 151-166, April.
    29. Boon Liat Cheng & Zabid Abdul Rashid, 2015. "Interrelationships of Service Quality, Customer Satisfaction, Corporate Image and Customer Loyalty of Malaysian Hotel Industry," Springer Proceedings in Business and Economics, in: Vicky Katsoni (ed.), Cultural Tourism in a Digital Era, edition 127, pages 37-38, Springer.
    30. Kim, Junghyun & Park, Taehoon, 2020. "How corporate social responsibility (CSR) saves a company: The role of gratitude in buffering vindictive consumer behavior from product failures," Journal of Business Research, Elsevier, vol. 117(C), pages 461-472.
    31. Izaskun Agirre Aramburu & Irune Gómez Pescador, 2019. "The Effects of Corporate Social Responsibility on Customer Loyalty: The Mediating Effect of Reputation in Cooperative Banks Versus Commercial Banks in the Basque Country," Journal of Business Ethics, Springer, vol. 154(3), pages 701-719, February.
    32. Claudel Mombeuil & Anestis K. Fotiadis, 2017. "Assessing the effect of customer perceptions of corporate social responsibility on customer trust within a low cultural trust context," Social Responsibility Journal, Emerald Group Publishing Limited, vol. 13(4), pages 698-713, October.
    33. Chen, Fang-Yuan & Chang, Yu-Hern & Lin, Yi-Hsin, 2012. "Customer perceptions of airline social responsibility and its effect on loyalty," Journal of Air Transport Management, Elsevier, vol. 20(C), pages 49-51.
    34. Michael Spence, 1973. "Job Market Signaling," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 87(3), pages 355-374.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Maryam Zidehsaraei & Reza Esmaeilpour & Mohsen Akbari, 2024. "The effects of similarity of values, religious values, and empathy on bank commitment to CSR and customers’ internal and behavioral responses: evidence from Guilan Province in Iran," Journal of Financial Services Marketing, Palgrave Macmillan, vol. 29(1), pages 154-170, March.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Waris Ali & Yu Danni & Badar Latif & Rehana Kouser & Saleh Baqader, 2021. "Corporate Social Responsibility and Customer Loyalty in Food Chains—Mediating Role of Customer Satisfaction and Corporate Reputation," Sustainability, MDPI, vol. 13(16), pages 1-15, August.
    2. SangRyeong Lee & Jin-Woo Park & Sukhoon Chung, 2022. "The Effects of Corporate Social Responsibility on Corporate Reputation: The Case of Incheon International Airport," Sustainability, MDPI, vol. 14(17), pages 1-19, September.
    3. Rather, Raouf Ahmad & Hollebeek, Linda D., 2021. "Customers’ service-related engagement, experience, and behavioral intent: Moderating role of age," Journal of Retailing and Consumer Services, Elsevier, vol. 60(C).
    4. Zimmer, Lukas & Swoboda, Bernhard, 2023. "Perceived corporate social responsibility effects across nations – The role of national institutions," International Business Review, Elsevier, vol. 32(3).
    5. James Agyei & Shaorong Sun & Emmanuel Kofi Penney & Eugene Abrokwah & Richmond Ofori-Boafo, 2021. "Linking CSR and Customer Engagement: The Role of Customer-Brand Identification and Customer Satisfaction," SAGE Open, , vol. 11(3), pages 21582440211, August.
    6. Maryam Zidehsaraei & Reza Esmaeilpour & Mohsen Akbari, 2024. "The effects of similarity of values, religious values, and empathy on bank commitment to CSR and customers’ internal and behavioral responses: evidence from Guilan Province in Iran," Journal of Financial Services Marketing, Palgrave Macmillan, vol. 29(1), pages 154-170, March.
    7. Pilar Fernández‐Ferrín & Sandra Castro‐González & Belén Bande, 2021. "Corporate social responsibility, emotions, and consumer loyalty in the food retail context: Exploring the moderating effect of regional identity," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 28(2), pages 648-666, March.
    8. D. Louis & C. Lombart, 2024. "Impact of a corporate social responsibility message on consumers’ sustainable behaviours and purchase intentions," Post-Print hal-04386727, HAL.
    9. Didier Louis & Cindy Lombart, 2024. "Impact of a corporate social responsibility message on consumers' sustainable behaviours and purchase intentions," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 31(1), pages 579-599, January.
    10. Muflih, Muhammad, 2021. "The link between corporate social responsibility and customer loyalty: Empirical evidence from the Islamic banking industry," Journal of Retailing and Consumer Services, Elsevier, vol. 61(C).
    11. Wójcik Piotr, 2018. "The business case for corporate social responsibility: A literature overview and integrative framework," Journal of Management and Business Administration. Central Europe, Sciendo, vol. 26(1), pages 121-148, March.
    12. Liao, Junyun & Chen, Jiawen & Zhao, Haichuan & Li, Muhua, 2023. "Fanning the flames: Transmitting negative word of mouth of rival brands," Journal of Business Research, Elsevier, vol. 154(C).
    13. Behnam, Mohsen & Hollebeek, Linda D. & Clark, Moira K. & Farabi, Reza, 2021. "Exploring customer engagement in the product vs. service context," Journal of Retailing and Consumer Services, Elsevier, vol. 60(C).
    14. Christopher J. Waples & Benjamin J. Brachle, 2020. "Recruiting millennials: Exploring the impact of CSR involvement and pay signaling on organizational attractiveness," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 27(2), pages 870-880, March.
    15. 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.
    16. Naveed Ahmad & Miklas Scholz & Zia Ullah & Muhammad Zulqarnain Arshad & Raja Irfan Sabir & Waris Ali Khan, 2021. "The Nexus of CSR and Co-Creation: A Roadmap towards Consumer Loyalty," Sustainability, MDPI, vol. 13(2), pages 1-15, January.
    17. Alatawi, Ibrahim A. & Ntim, Collins G. & Zras, Anis & Elmagrhi, Mohamed H., 2023. "CSR, financial and non-financial performance in the tourism sector: A systematic literature review and future research agenda," International Review of Financial Analysis, Elsevier, vol. 89(C).
    18. Pere Mercadé‐Melé & Carmina Fandos‐Herrera & Sofía Velasco‐Gómez, 2021. "How corporate social responsibility influences consumer behavior: An empirical analysis in the Spanish agrifood sector," Agribusiness, John Wiley & Sons, Ltd., vol. 37(3), pages 590-611, July.
    19. Park, Eunil, 2019. "Corporate social responsibility as a determinant of corporate reputation in the airline industry," Journal of Retailing and Consumer Services, Elsevier, vol. 47(C), pages 215-221.
    20. Linda D. Hollebeek & Moira K. Clark & Wafa Hammedi & René Arvola, 2021. "Cocreated brand value: theoretical model and propositions," Journal of Brand Management, Palgrave Macmillan, vol. 28(4), pages 413-428, July.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:sagope:v:11:y:2021:i:4:p:21582440211067233. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.