Effects of quality and corporate social responsibility on loyalty

Rojanasak Chomvilailuk · Ken Butcher

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Customer Service Quality and Loyalty Corporate Social Responsibility Reporting Environmental Sustainability in Business

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.

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References

1991Corporate Social Performance Revisited 2001Does Doing Good Always Lead to Doing Better? Consumer Reactions to Corporate Social Responsibility 1997The Company and the Product: Corporate Associations and Consumer Product Responses 2010The Business Case for Corporate Social Responsibility: A Review of Concepts, Research and Practice 2006Corporate Social Responsibility, Customer Satisfaction, and Market Value 2010Maximizing Business Returns to Corporate Social Responsibility (CSR): The Role of CSR Communication 2001Do Consumers Expect Companies to be Socially Responsible? The Impact of Corporate Social Responsibility on Buying Behavior 2005The impact of perceived corporate social responsibility on consumer behavior

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