CSR and consumer behavioral responses: the role of customer-company identification

Abstract

Purpose The purpose of this paper is to examine the influence of perceived CSR and its influence on customer satisfaction and loyalty in the hotel industry. Design/methodology/approach Personal surveys of hotel guests were carried out in three metropolitan cities of India. The survey resulted in 327 valid responses which were further analyzed. To test the proposed model, structural equation modeling was applied. Findings The findings show that consumer perception of CSR activities positively influences consumer identification with the company, and identification positively results in customer satisfaction and loyalty. Research limitations/implications Findings of the study have important implications for hospitality companies as they suggest that hotel managers should invest more in socially responsible initiatives since consumers tend to support those firms that are perceived as socially responsible by developing a sense of loyalty towards them. Originality/value This study provides a comprehensive framework that integrates social identity and social exchange perspectives towards building customer satisfaction and loyalty.