Abstract
The homogenization of the banking segment has made it difficult for banking institutions to practice the quality of services that are needed in order to retain consumers. Thus, these days, finding ways to increase consumer loyalty—especially green loyalty—has become a challenge for the banking industry around the planet. Research has long acknowledged that corporate social responsibility (CSR) is a strategic concern that could help organizations to increase consumer loyalty. However, the impact of CSR practices on green consumer loyalty is rarely addressed in the extant literature. Hence, the present research investigated the impact of CSR on green consumer loyalty with the mediating effect of co-creation in the banking industry of Pakistan. The study also introduced green banking initiatives as a moderator between the mediated relation of CSR and green consumer loyalty, with the intention that such a moderator would strengthen this indirect relationship. The structural equation modeling technique was used for the data analysis. The results confirm that CSR enhances consumer loyalty, and that co-creation partially mediates this relationship. Furthermore, green banking initiatives further strengthen this relation. The results of the current survey could help banking institutions learn how they can develop core strategic considerations based on the integration of CSR co-creation and green banking initiatives.
Highlights
The concept of corporate social responsibility is deeply rooted in the idea of the long-term ‘footprint’ that an organization leaves on society, and can be seen in areas such as environmental responsibility/ sustainability [1], employee relations [2], and targeted marketing [3]
The researchers remained directly engaged in the data collection procedure, verifying the corporate social responsibility (CSR) awareness of respondents and obtaining their permission, moving on to the research instrument
All of the items were tested by experts, and the items of all three constructs were randomly scattered in the questionnaire in order to break any anticipated sequence developed by the respondents
Summary
The concept of corporate social responsibility is deeply rooted in the idea of the long-term ‘footprint’ that an organization leaves on society, and can be seen in areas such as environmental responsibility/ sustainability [1], employee relations [2], and targeted marketing [3]. With the growing inclination towards green banking, most researchers have studied issues in various areas, such as green banking initiatives [33], the impact of green banks on sustainable development [36], consumer information of green banks [37], customer satisfaction in green banks [38], green consumer loyalty [33], green bank acceptance [39], consumers’ green attitude [40], and environment up-gradation through green banking initiatives [41]. Due to increased pressures from different stakeholders, including consumers, banking institutions have started to report their efforts to preserve the natural environment In this regard, green banking initiatives can lead a bank toward consumer satisfaction, which enhances green consumer loyalty [45,46,47]. The results of the current survey will help banking institutions to understand how they can develop core strategic considerations based on the integration of CSR, co-creation, and green initiatives to boost green consumer loyalty. The rest of the article is comprised of the theory building and hypothesis, research methodology, analysis of data, discussion, conclusion, and implications for policy makers
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