Corporate Social Responsibility and Customer Loyalty in Food Chains—Mediating Role of Customer Satisfaction and Corporate Reputation

Waris Ali,Yu Danni,Saleh Baqader,Rehana Kouser,Badar Latif

doi:10.3390/su13168681

Abstract

The study examined the role of perceived CSR in deriving customer loyalty by exploring direct and mediated effects of corporate reputation and customer satisfaction in Pakistan’s food chains. The data were collected through a survey method from 322 customers of McDonald’s in Pakistan during October 2019 and January 2020. The collected information was then analyzed through the Partial Least Square Structural Equation Modeling (PLS-SEM) technique to test the hypothesized relationships. The results revealed a significant positive impact of perceived CSR on customer loyalty, corporate reputation, and customer satisfaction. Further, customer satisfaction and corporate reputation appeared to mediate the relationship between perceived CSR and customer loyalty.

Highlights

This study examines the relationship between CSR and customer loyalty through the mediating role of corporate reputation and customer satisfaction in Pakistan’s food chains
The results showed a significant positive relationship between perceived CSR and customer loyalty (β = 0.11, t = 1.75, p = 0.00), customer reputation (β = 0.87, t = 2.20, p = 0.00), and customer satisfaction (β = 0.71, t = 10.56, p = 0.00)
The study examined the role of perceived CSR in deriving customer loyalty by exploring direct and mediated effects of corporate reputation and customer satisfaction in Pakistan’s food chains

Summary

Introduction

Food chains, including restaurants and hotels, minimize their social and ecological impacts. It has been noticed in the extant literature that product attributes such as price and quality are no longer the main reasons for competitive advantages; instead, corporate social and ethical practices have appeared to stimulate customer responses [6]. Food chains are struggling to satisfy and sustain customers, and they are using CSR as a strategic tool to seek customers’ favorable responses [7], including customer satisfaction, corporate reputation, customer loyalty, and positive attitudes towards the company’s brands [8]. Customer loyalty is seen as a pivotal illustration to display their approval for corporate performance [9]

Methods

Results

Discussion

Conclusion