Abstract
This study examines the influence of corporate social responsibility activities on customer satisfaction and loyalty in the Saudi banking sector. The quantitative method was adopted by conducting a web-based survey via e-mail and social media platforms. A convenience sample of 624 banking customers in Saudi Arabia was withdrawn. Pearson’s Correlation Coefficients were generated, using statistical analyse software (SPSS 20), to test the study hypotheses. The empirical Findings of this study show that corporate social responsibility activities have a strong and positive impact on customer satisfaction and loyalty. It was also found that customer satisfaction is linked positively to customer loyalty. Findings from this paper are of importance for bank managers and directors when developing effective strategies.
Highlights
Specialists today think that firms are responsible to the society in which they operate, and they need to achieve certain social obligations (Peloza & Shang, 2011; Sen & Bhattacharya, 2001)
In order to fill the above gaps in the existing literature, this study aims to examine the relationship between corporate social responsibility (CSR) activities and customer satisfaction and customer loyalty in the Saudi banking sector
Discussion and managerial implications The findings of this study confirm that CSR activities can enhance satisfaction and loyalty of banking customers
Summary
Specialists today think that firms are responsible to the society in which they operate, and they need to achieve certain social obligations (Peloza & Shang, 2011; Sen & Bhattacharya, 2001). Studies show that customers are willing to reject a firm with no social responsibility by switching to another firm that is practicing corporate social responsibility (CSR) (Webb, Mohr, & Harris, 2008). Her research interests include corporate social responsibility, quality management and leadership. Nada Saleh Badawi is an Assistant Professor in the Department of Business Administration, Faculty of Economics and Administration at King Abdulaziz University. She received her PhD from Middlesex University. Her current research interests include relationship marketing, entrepreneurship and innovation
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