The Relationship Between Corporate Social Responsibility and Customer Loyalty: Evidence From Vietnam

The Relationship Between Corporate Social Responsibility and Customer Loyalty: Evidence From Vietnam

Dinh Toan Nguyen, Khanh Van Bach, Khanh Linh Bui, Ngoc Mai Tran, Hoang Ngan Le
DOI: 10.4018/IJCRMM.304909
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Abstract

This study was conducted to investigate the relationship between corporate social responsibility and customers’ loyalty. The study first reviewed previous research and developed hypotheses related to the research survey data sets collected through qualitative research with questionaires answered by 386 consumers of Grab holding inc, Data were collected via internet questionnaires. Structural Equation modeling (SEM) was used to test the study hypotheses. The findings from the study indicated that customer and envirnment oriented CSR had a significant positive effect on behavioral loyalty and attitude loyalty. Employees and community oriented CSR had a significant positive effect behavioral loyalty, while the attitude loyalty had a significant positive effect behavioral loyalty. Based on the study’s empirical analysis, some implications were proposed to help enterprises on how to CSR activities in order for them to enhance their customer’s loyalty.
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Introduction

These years, Corporate Social Responsibility (CSR) has been playing an important role in the brand’s strategy. The entry of an increasing number of domestic and foreign technology service providers escalates the competitiveness of the market, posing a challenge to ensure the sustainability of enterprises in many aspects: reputation (Carter et al., 2021; Kiatkawsin & Sutherland, 2020), brand management (Schmeltz & Kjeldsen, 2022) online customers (Wang et al., 2019), and brand loyalty (Ahn et al., 2021; Vu et al., 2020). Among them, brand loyalty emerges as a key factor that directly enlarges market share and profits (Arslan, 2020), and it is a tool to retain customers for survival of business (Chaudhuri et al., 2021).

The literature on the CSR–loyalty relationship have been thoroughly examined. Most of the existing studies on the CSR–customer loyalty relationship focused on developed countries (Chen McCain et al., 2019; Latif et al., 2020; Palacios-Florencio et al., 2018) and the studies conducted in developing countries (Cha et al., 2016; Chen et al., 2012; Chubchuwong, 2019; Kim & Ham, 2016). Further, existing scholarships studied the role of CSR in accomplishing customer loyalty in the context of airlines (Chen et al., 2012), tourism (Chubchuwong, 2019), hotels (Gürlek et al., 2017; Kim & Ham, 2016), casinos (Chen McCain et al., 2019), restaurants (Kim & Ham, 2016), food chains (Ali et al., 2021), coffee shops (Cha et al., 2016), super markets (Servera-Francés & Piqueras-Tomás, 2019), banking (Pratihari & Uzma, 2018), and shopping malls (Khan & Fatma, 2019). Whether CSR plays an influential role in shaping the CSR–loyalty relationship in technology transport has rarely been investigated, particularly in developing countries. In particular, previous studies on the relationship between CSR and loyalty only measured composite loyalty (a combination of behavioral and attitudinal measurement) (eg, Ali et al., 2021; Chen McCain et al., 2019; Khan & Fatma, 2019; Pratihari & Uzma, 2018; Servera-Francés & Piqueras-Tomás, 2019), but has rarely been investigated on this relationship to the two different aspects of brand loyalty that have been described in previous work on the concept—behavioral and attitudinal (Aaker, 1991; Oliver, 1999), as well as the mediating role of attitudinal loyalty.

Additionally, Some studies on the relationship between CSR and loyalty but must be checked through one or more mediating variables: company evaluation, identity attractiveness of brand, customer-brand relationship identification (Ahn et al., 2021; Islam et al., 2021); corporate image (Chung et al., 2015; Muflih, 2021); stakeholder associations, attitude, and identification, intention to seek employment, consume company’s products and invest in the company (Sen et al., 2006); perceived service quality (Lacap et al., 2021; Mandhachitara & Poolthong, 2011). Besides, previous studies focus on testing the impact of social responsibility in general on customer loyalty. In Vietnam, research on CSR have been thoroughly examined. Most of the existing studies on the CSR–customer loyalty relationship focused on the context of hotels (Tran & Nguyen, 2014), banking (V. A. Nguyen & Nguyen, 2021), feed (H. H. Nguyen & Nguyen, 2013), and tourism (Yu & Hwang, 2019).

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