Corporate social responsibility (CSR) and customer loyalty in the hotel industry: A cross-country study

Abstract

• The study examines role of CSR in improving loyalty by exploring mediated effects of through service quality, satisfaction, image and reputation. • Data were collected from Pakistan, China, and Italy with self-administered questionnaires regarding customers’ hotel experiences. • The empirical findings for overall sample revealed that there is a positive relationship between CSR and customer loyalty. • The findings revealed a significant and positive impact of CSR on service quality, satisfaction, image and reputation. • Satisfaction and image were identified as significant mediators of the CSR-loyalty link but service quality and reputation were insignificant. The study examines the role of customer perceptions of CSR in improving customer loyalty by exploring its direct and mediated effects through service quality, customer satisfaction, corporate image and corporate reputation in a cross-country setting. Data from Pakistan, China, and Italy was collected through surveys to explore customers’ hotel experiences. The hypotheses were tested with SmartPLS-3. Findings for the overall sample revealed that CSR affected customer loyalty positively and significantly. Nonetheless, this relationship was insignificant in the samples from Pakistan and Italy, while it was found to be only partially significant in China. The findings also revealed a direct, positive and significant impact of CSR on service quality, customer satisfaction, corporate image and corporate reputation. The direct relationships among all these variables were also significant across samples. Customer satisfaction and corporate image were identified as significant mediators of the CSR-loyalty link, but service quality and corporate reputation were found insignificant.