The Influence of Corporate Social Responsibility (CSR) on Customer Loyalty Mediated by Customer Satisfaction, Trust, Word of Mouth (WOM), and Company Reputation

Authors

  • Wulan Rahmawati Universitas Esa Unggul, Indonesia
  • Unggul Kustiawan Universitas Esa Unggul, Indonesia

DOI:

https://doi.org/10.38035/dijemss.v6i1.3480

Keywords:

Corporate social responsibility, customer loyalty, customer satisfaction, trust, word of mouth , and corporate reputation

Abstract

Retaining customers is important for companies because the cost of acquiring new customers is much greater than the cost of maintaining relationships with current customers. This is because loyal customers will certainly provide a positive image for the company and generate word of mouth promotion in acquiring new customers. The purpose of this study is to examine the effect of Corporate Social Responsibility (CSR) on customer loyalty mediated by Customer Satisfaction, Trust, Word of Mouth (WOM), and Corporate Reputation. Type data Which used is data primary, is data Which sourced or managed in a way direct by researcher. Collection data in study This done through questionnaire with using google-form . The population of this study were customers who had been Government Banks for more than 1 (one) year, namely Bank Mandiri, Bank BNI, and Bank BRI and were over 17 years old (seventeen years old). The sample in this study was 100 customers of Government Banks, namely Bank Mandiri, Bank BNI, and Bank BRI who have used and are still using the services of these banks. This study uses the Structural Equation Model (SEM) approach with a measurement model assisted by the Smart PLS program version 3.2.9. Furthermore results study show that corporate social responsibility has a significant positive effect on customer satisfaction, trust, word of mouth, corporate reputation , and customer loyalty. Then the variables customer satisfaction, trust, corporate reputation found has a significant positive effect on customer loyalty, but the word of mouth variable does not affect customer loyalty . Furthermore, it was found that customer satisfaction, trust, and corporate reputation can mediate the relationship between corporate social responsibility and customer loyalty . However, the corporate social responsibility variable does not affect customer loyalty with word of mouth as a mediator.

References

Ahmudin, A., & Ranto, D. W. P. (2023). Pengaruh Harga, Word of Mouth dan Kepuasan Pelanggan terhadap Loyalitas Pelanggan Telkomsel di Yogyakarta. Jurnal E-Bis, 7(1), 158–168. https://doi.org/10.37339/e-bis.v7i1.1112

Ahn, J., Shamim, A., & Park, J. (2021). Impacts of cruise industry corporate social responsibility reputation on customers’ loyalty: Mediating role of trust and identification. International Journal of Hospitality Management, 92(August 2020). https://doi.org/10.1016/j.ijhm.2020.102706

Akbari, M., Mehrali, M., SeyyedAmiri, N., Rezaei, N., & Pourjam, A. (2020). Corporate social responsibility, customer loyalty and brand positioning. Social Responsibility Journal, 16(5), 671–689. https://doi.org/10.1108/SRJ-01-2019-0008

Ali, W., Danni, Y., Latif, B., Kouser, R., & Baqader, S. (2021). Corporate social responsibility and customer loyalty in food chains—mediating role of customer satisfaction and corporate reputation. Sustainability (Switzerland), 13(16). https://doi.org/10.3390/su13168681

Aramburu, I. A., & Pescador, I. G. (2019). The Effects of Corporate Social Responsibility on Customer Loyalty: The Mediating Effect of Reputation in Cooperative Banks Versus Commercial Banks in the Basque Country. Journal of Business Ethics, 154(3), 701–719. https://doi.org/10.1007/s10551-017-3438-1

Ban, H. J., & Jun, J. K. (2019). A study on the semantic network analysis of luxury hotel and business hotel through the big data. Culinary Science & Hospitality Research, 25(1), 18–28.

Bukhari, S. A. A., Hashim, F., & Amran, A. B. (2020). Determinants and Outcome of Islamic Corporate Social Responsibility (ICSR) Adoption in Islamic Banking Industry of Pakistan. Journal of Islamic Marketing, 12, 730–762.

Cheung, A. (Waikong), & Pok, W. C. (2019). Corporate social responsibility and provision of trade credit. Journal of Contemporary Accounting and Economics, 15(3), 100159. https://doi.org/10.1016/j.jcae.2019.100159

Cowan, K., & Guzman, F. (2020). How CSR reputation, sustainability signals, and country-of-origin sustainability reputation contribute to corporate brand performance: An exploratory study. Journal of Business Research, 117(November), 683–693. https://doi.org/10.1016/j.jbusres.2018.11.017

De Mendonca, T. R., & Zhou, Y. (2019). Environmental performance, customer satisfaction, and profitability: A study among large U.S. companies. Sustainability (Switzerland), 11(19). https://doi.org/10.3390/su11195418

Faqihudin, A., Asnawi, M., & Pangayow, B. J. C. (2020). Pengaruh Penerapan Corporate Social Responsibility (CSR), Corporate Image, dan Keputusan Nasabah terhadap Loyalitas Nasabah. Jurnal Akuntansi Dan Keuangan Daerah, 15(1), 67–76.

Ghozali, I. (2016). Aplikasi Analisis Multivariete Dengan Program IBM SPSS 23 (Edisi 8). Badan Penerbit Universitas Diponegoro.

Gli, D. D., Tweneboah-Koduah, E. Y., Odoom, R., & Kodua, P. (2024). The effect of corporate reputation on customer loyalty in the Ghanaian banking industry: the role of country-of-origin. African Journal of Economic and Management Studies, 15(1), 73–87. https://doi.org/10.1108/AJEMS-12-2022-0492

Hair, J. F., Risher, J. J., Sarstedt, M., & Ringle, C. M. (2019). When to use and how to report the results of PLS-SEM. European Business Review, 31(1), 2–24. https://doi.org/10.1108/EBR-11-2018-0203

Hair, J. F., Risher, J. J., Sarstedt, M., & Ringle, C. M. (2019). When to use and how to report the results of PLS-SEM. European Business Review, 31(1), 2–24. https://doi.org/10.1108/EBR-11-2018-0203

Hanaysha, J. R. (2021). Impact of Price Promotion, Corporate Social Responsibility, and Social Media Marketing on Word of Mouth. Business Perspectives and Research, 9(3), 446–461. https://doi.org/10.1177/2278533721989839

Harun, M. S., Hussainey, K., Mohd Kharuddin, K. A., & Al Farooque, O. (2020). CSR Disclosure, Corporate Governance and Firm Value: A Study on GCC Islamic Banks. International Journal of Accounting & Information Management, 28, 607–638.

Islam, R., Ahmed, S., Rahman, M., & Al Asheq, A. (2021). Determinants of service quality and its effect on customer satisfaction and loyalty: an empirical study of private banking sector. TQM Journal, 33(6), 1163–1182. https://doi.org/10.1108/TQM-05-2020-0119

Jeon, M. M., Lee, S., & Jeong, M. (2020). Perceived corporate social responsibility and customers’ behaviors in the ridesharing service industry. International Journal of Hospitality Management, 84(July 2019), 102341. https://doi.org/10.1016/j.ijhm.2019.102341

Khan, I., Hollebeek, L. D., Fatma, M., Islam, J. U., & Riivits-Arkonsuo, I. (2020). Customer experience and commitment in retailing: Does customer age matter? Journal of Retailing and Consumer Services, 57(July), 102219. https://doi.org/10.1016/j.jretconser.2020.102219

Kim, S. (2019). The Process Model of Corporate Social Responsibility (CSR) Communication: CSR Communication and its Relationship with Consumers’ CSR Knowledge, Trust, and Corporate Reputation Perception. Journal of Business Ethics, 154(4), 1143–1159. https://doi.org/10.1007/s10551-017-3433-6

Latif, K. F., Pérez, A., & Sahibzada, U. F. (2020). Corporate social responsibility (CSR) and customer loyalty in the hotel industry: A cross-country study. International Journal of Hospitality Management, 89(May 2019), 102565. https://doi.org/10.1016/j.ijhm.2020.102565

Malhotra, N. (2017). MARKETING RESEARCH: An applied orientation. Marketing Research, 2, 1–26. https://thuvienso.hoasen.edu.vn/handle/123456789/12586

Miras?Rodríguez, M. D. M., Bravo?Urquiza, F., & Escobar?Pérez, B. (2020). Does corporate social responsibility reporting actually destroy firm reputation? Corporate Social Responsibility and Environmental Management, 27(4), 1947–1957.

Nasiru, M., & View, M. S. (2021). IMPACTS OF CUSTOMER RETENTION ON SURVIVAL OF BUSINESS PERFORMANCE OF ADAMA BEVERAGES YOLA Racheal Amos Musa ( Ph . D in View ). 3(February), 66–74.

Nguyen, T. H. N., Tran, N. K. H., & Do, K. (2023). An empirical research of corporate social responsibility on creating the green brand equity: An exploratory of Vietnamese consumers’ perception in the bank industry. Corporate Social Responsibility and Environmental Management, 30(3), 1292–1299. https://doi.org/10.1002/csr.2419

Ofori, E. (2020). The effects of Ponzi schemes and revocation of licences of some financial institutions on financial threat in Ghana. Journal of Financial Crime. https://doi.org/10.1108/JFC-01-2020-0003

Osakwe, C. N., Ruiz, B., Amegbe, H., Chinje, N. B., Cheah, J. H., & Ramayah, T. (2020). A multi-country study of bank reputation among customers in Africa: Key antecedents and consequences. Journal of Retailing and Consumer Services, 56(May 2019). https://doi.org/10.1016/j.jretconser.2020.102182

Park, E. (2019a). Corporate social responsibility as a determinant of corporate reputation in the airline industry. Journal of Retailing and Consumer Services, 47, 215–221.

Paulík, J., Kombo, F., & Klju?nikov, A. (2015). CSR as a driver of satisfaction and loyalty in commercial banks in the Czech republic. Journal of International Studies, 8(3), 112–127. https://doi.org/10.14254/2071-8330.2015/8-3/9

Pham, H. S. T., & Tran, H. T. (2020). CSR disclosure and firm performance: The mediating role of corporate reputation and moderating role of CEO integrity. Journal of Business Research, 120(August), 127–136. https://doi.org/10.1016/j.jbusres.2020.08.002

Quoquab, F., Mohamed Sadom, N. Z., & Mohammad, J. (2020). Driving customer loyalty in the Malaysian fast food industry: The role of halal logo, trust and perceived reputation. Journal of Islamic Marketing, 11(6), 1367–1387. https://doi.org/10.1108/JIMA-01-2019-0010

Rather, R. A., Tehseen, S., Itoo, M. H., & Parrey, S. H. (2019). Customer brand identification, affective commitment, customer satisfaction, and brand trust as antecedents of customer behavioral intention of loyalty: An empirical study in the hospitality sector. Journal of Global Scholars of Marketing Science, 29(2), 196–217.

Raza, A., Ilyas, S., Faisal, M. M., & Zia, M. H. (2020). An Empirical Investigation of Customer Loyalty as a Mediator between the Relationship of Customer Relationship Management and Word of Mouth. Paradigms, S1, 27–31. https://doi.org/10.24312/20000105

Shah, M. U., & Jan, M. F. (2021). Connecting Corporate Social Responsibility (CSR) to Customer Loyalty: A Mediation Analysis in Hoteling Industry of Pakistan. SAGE Open, 11(4). https://doi.org/10.1177/21582440211067233

Suhartanto, D., Helmi Ali, M., Tan, K. H., Sjahroeddin, F., & Kusdibyo, L. (2019). Loyalty toward online food delivery service: the role of e-service quality and food quality. Journal of Foodservice Business Research, 22(1), 81–97. https://doi.org/10.1080/15378020.2018.1546076

Tahir, Z. A. M., Abdullah, Z., Hasan, N. A. M., & Alsagoff, S. A. (2021). Institutionalising and managing corporate reputation through leadership communication in leading government-linked media companies. SEARCH Journal of Media and Communication Research, 13(2), 37–54.

Tran, N. T. (2022a). Impact of corporate social responsibility on customer loyalty: Evidence from the Vietnamese jewellery industry. Cogent Business and Management, 9(1). https://doi.org/10.1080/23311975.2022.2025675

Wong, A. K. F., Kim, S., & Lee, S. (2022). The evolution, progress, and the future of corporate social responsibility: Comprehensive review of hospitality and tourism articles. International Journal of Hospitality and Tourism Administration, 23(1), 1–33.

Yomboi, J., Nangpiire, C., Kutochigaga, E. A., & Majeed, M. (2021). The Impact of the Collapsed Banks on Customers in Ghana. Asian Journal of Economics, Business and Accounting, 21(17), 15–25. https://doi.org/10.9734/ajeba/2021/v21i1730487

Zhao, Y., Abbas, M., Samma, M., Ozkut, T., Munir, M., & Rasool, S. F. (2021). Exploring the relationship between corporate social responsibility, trust, corporate reputation, and brand equity. Frontiers in Psychology, 12, 766422.

Downloads

Published

2024-10-26

How to Cite

Rahmawati, W., & Kustiawan, U. (2024). The Influence of Corporate Social Responsibility (CSR) on Customer Loyalty Mediated by Customer Satisfaction, Trust, Word of Mouth (WOM), and Company Reputation. Dinasti International Journal of Education Management And Social Science, 6(1), 652–668. https://doi.org/10.38035/dijemss.v6i1.3480