The importance of CSR initiatives in building customer support and loyalty

Abstract

Purpose The purpose of this paper is to examine how the perception of CSR influences different aspects of consumer behaviour, specifically focussing on the antecedents of perceived value, customer support and loyalty. Design/methodology/approach A total of 418 completed responses were obtained and provided the data to analyse and test the hypothesised research model. To test the hypotheses, structural equation modelling using PLS was employed. Findings Findings reveal that customer awareness of the current CSR initiatives to different stakeholder groups significantly influences their perceptions of what social initiatives are actually undertaken by firms for their economic, legal, ethical and philanthropic responsibility. In addition, customer views of what firms actually do in respect to social initiatives are significantly related to their level of CSR expectations. This indicates that the customers will always expect more from banks compared to what they actually do. Surprisingly, CSR perception is not directly related to customers’ loyalty, which contradicts the majority of previous studies indicating that CSR perception influences consumer behaviour. Originality/value This study provides an original contribution to the CSR body of knowledge, especially for developing countries where the awareness level is low. It also provides a deep understanding of the influence of CSR into consumer behaviour, as it investigates the influence of the full construct of CSR into customer loyalty. Finally, the study investigated the relationship between the perception and the expectation of CSR; this relationship has been neglected in previous studies, where either CSR perceptions or CSR expectations have been examined separately.