Corporate social responsibility, customer loyalty and brand positioning

Abstract

Purpose In the current era, businesses and customers are becoming increasingly concerned with social and environmental issues, and unlike the past, the main focus is not merely on economic growth. As new customers are getting more informed and responsible toward their surroundings, it is necessary for enterprises to act responsibly to attract responsible customers. Therefore, this paper aims to investigate the impact of corporate social responsibility (CSR) on brand positioning and customer loyalty in travel agencies in Tehran, Iran. Design/methodology/approach Through quota sampling, 86 agencies are selected and a number of 200 customers of those travel agencies are surveyed by means of purposive sampling. Findings The result reveals that CSR has a significant effect on loyalty of customers and brand positioning. In addition, the results indicate that all hypotheses have significant effects except for the C-C identification on customer loyalty. Practical implications Tourism managers should bear in mind that performing CSR activities is not merely a cost burden but a viable strategy for creating competitive advantage. They should adapt their CSR activities to the industry environment. Originality/value The study provides important evidence about CSR and their role in brand positioning and customer loyalty in tourism industry. In addition, the study contributes to the literature by developing the link between CSR and brand positioning.