The Effects of CSR on Customer Satisfaction and Loyalty in China: The Moderating Role of Corporate Image

Abstract

Abstract-In the face of growing worldwide interest in corporate social responsibility (CSR), this paper explores how CSR factors influence customer satisfaction and loyalty and whether the moderating effects of corporate image in the relationships between CSR and customer satisfaction and customer loyalty are or not. There may be the difference of perceptions of CSR between consumers of developing and developed countries. This study used structural equation modeling (SEM) to test the hypotheses. The findings show that CSR positively affects customer satisfaction and loyalty, and customer satisfaction positively affects customer loyalty. The importance order of CSR factors is as follows: consumer protection, philanthropic responsibility, legal responsibility, ethical responsibility, economic responsibility, and environmental contribution. The moderating effect of corporate image in the relationship between CSR and customer satisfaction is identified. Thus, managers should put CSR factors into action in the perspective of consumers, which will encourage customers to perceive the firms more favorably. The conclusion draws implications for marketing practice and future research.Index Terms-Corporate image, customer loyalty, customer satisfaction, CSR.

Does Customer Loyalty Depend on Corporate Social Responsibility?

“…Numerous studies have confirmed the influence of perceptions about CSR dimensions on customers' loyalty (Ailawadi et al, 2014;Chung et al, 2015;García de los Salmones et al, 2005;He & Li, 2011;Marin et al, 2009;Perez et al, 2012;Srbljinović, 2012).…”

“…But loyal customers increase their purchases of certain products over time. At the same time, they are ready to buy and use other products from the product range of the company to which they are loyal, so they are important for delivering long-term profits (Chung et al, 2015). A cost reduction in loyal customers' services could also be achieved.…”

“…Customers have more trust, purchase more, and prefer to recommend socially responsible companies (Vlachos, Tsamakos, Vrechopoulos, & Avramidis, 2009). Numerous studies have shown a positive relationship between perceptions of CSR and customer loyalty (Ailawadi, Neslin, Luan, & Taylor, 2014;Chung et al, 2015;García de los Salmones et al, 2005;He & Li, 2011;Lee et al, 2012;Marin et al, 2009;Perez et al, 2012;Srbljinović, 2012). Customers appreciate companies' participation in humanitarian events, programs devoted to energy conservation, sponsorship of local events, etc.…”

“…Customer loyalty is the basic goal of each company, especially in the conditions of strong competition, economic crisis, and international scandals. It is considered a vital objective for a company's survival and growth as well as an important basis for developing a sustainable competitive advantage (Chung, Yu, Choi & Shin, 2015). Loyalty can be defined as a customer's unconditional commitment to the company and his or her strong relationship with the brand, which is not likely to be affected under normal circumstances (Maheshwari, Lodorfos, & Jacobsen, 2014, p. 16).…”

Investigating the Moderating Effect of Hospital Public Image on Loyalty

“…Hsieh and Li's study [10] showed that brand image played as moderating variable which strengthen the effect of public relation's effectiveness. Chung et al's study [11] also empirically showed that a favorable companies with a good brand image will perceived better on delivering CSR. Hospital manager also spend a lot of money to build the corporate's image.…”