Investigating loyalty through CSR: The mediating role of brand image and brand trust

Abstract

The purpose of this study is to investigate the effect of corporate social responsibility (CSR) activities on brand image, brand trust, brand loyalty, and purchase intention, based on consumers' perceptions in the context of the retail hypermarkets industry within the Egyptian market. To address the objectives of the study, a quantitative research methodology was used; the data were collected through a questionnaire, resulting in 403 valid responses from customers. The collected data were analysed using SPSS 23 and structural equation modelling on AMOS. The study found that CSR activities influence directly brand image and brand trust and indirectly brand loyalty and purchase intentions through the mediating role of brand image and brand trust. There was no significant direct relationship between CSR and brand loyalty as well as between CSR and purchase intentions. The effect of brand image is stronger than brand trust on both brand loyalty and purchase intention. The effects of brand image and brand trust are stronger in brand loyalty than in purchase intention. The paper adds to the understanding of the pivotal role of CSR activities as well as brand image and trust in affecting a consumer's intention to purchase decision, which has not been studied extensively in the Egyptian business to customer relationship markets in the retail industry. The study emphasises the importance of consumers' perceptions of CSR in achieving the main outcomes of relationship marketing (brand image, brand trust, brand loyalty and purchase intention). Retailers are progressively anxious to contribute to social and environmental domestic and international markets. Marketers should develop more consistent and effective social responsibility programmes to close any gaps between the retailer and the consumer perspective on CSR initiatives, and enhance the coordination between CSR activities incorporated into retailers' corporate strategic plans and their consumers' perceptions of these activities.