Does CSR Help to Retain Customers in a Service Company?

The main aim of this paper is to analyze the influence of service companies’ corporate social responsibility (CSR) actions on final customer’s loyalty. A theoretical model of loyalty formation based on CSR was proposed and a sample of 1125 final customers of financial services in Spain was studied....

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Bibliographic Details
Published in:Sustainability 2021-01, Vol.13 (1), p.300
Main Authors: Fandos-Roig, Juan Carlos, Sánchez-García, Javier, Tena-Monferrer, Sandra, Callarisa-Fiol, Luis José
Format: Article
Language:English
Subjects:
Brand loyalty
Consumers
Customer services
Customers
Employees
Ethics
Heterogeneity
Marketing
Model testing
Multivariate statistical analysis
Perception
Social responsibility
Society
Stakeholders
Sustainability
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Summary:The main aim of this paper is to analyze the influence of service companies’ corporate social responsibility (CSR) actions on final customer’s loyalty. A theoretical model of loyalty formation based on CSR was proposed and a sample of 1125 final customers of financial services in Spain was studied. Structural equation models were used to verify the hypothesized relationships. Based on the CSR theory oriented to stakeholders, this work justifies the direct and positive relationship between the perception of CSR actions in the shopping experience and customer trust. We also verified a positive indirect influence on loyalty. The services industry was chosen to conduct this research due to its own particularities (intangibility, inseparability, heterogeneity and perishability). As it is impossible to evaluate a service before its consumption, a high level of trust in the supplier will be necessary to motivate the purchase decision. We conclude that CSR becomes a key strategic asset for determining trust and loyalty among consumers. As major findings, we have verified the special importance of CSR in the services market. CSR improves customer trust in the service provider. Thus, this paper has significant managerial implications. Through CSR strategies, both the perception of the customer’s purchasing experience and trust can be enhanced, resulting in more loyal customers. As a limitation, this research was carried out among financial services. Further research should test the model across different industries and countries in order to determine the generalizability and consistency of the findings of this study.
ISSN:2071-1050
2071-1050
DOI:10.3390/su13010300