Sustainable Development and Customer Satisfaction and Loyalty in North Cyprus: The Mediating Effect of Customer Identification

Abstract

This study analyzes the influence of corporate social responsibility (CSR) from a multidimensional sustainable development approach on customer loyalty and satisfaction through the mediation of customer identification. CSR is a key concept for banks to attract, retain, satisfy and increase the loyalty of customers. Structural equation modeling was conducted to test the proposed relationship. The questionnaire was filled out by 389 banking sector customers. The findings suggested that customer identification mediates the relationship between the economic development dimension of CSR and customer satisfaction and loyalty. However, customer identification did not show a mediating effect between social equity and environmental protection dimension of CSR and customer loyalty and satisfaction. The findings are expected to provide insights into the importance of CSR for the banking industry in order to enhance favorable customer attitudes.

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