Abstract
Promoting corporate social responsibility (CSR) and co-creation has become a crucial relationship marketing strategy for the banks. This research empirically investigates how banks’ CSR activities generate positive customer responses in the form of co-creation, customer–company identification (CCI), and loyalty. This research sheds light on the influence of CSR on customer behavior by analyzing the underlying psychological processes through the sequential mediation of co-creation and CCI. Working with a sample of 280 banking customers in Pakistan, partial least square based structural equation modeling (PLS-SEM) is employed to test the conceptual model. CSR is a multidimensional formative construct that affects customer loyalty both directly and indirectly. Sequential partial mediations of co-creation and CCI are found between CSR activities and customer loyalty. Lastly, CCI has a direct and significant impact on co-creation and customer loyalty. Banks must include CSR in their long-term marketing plans to improve overall customer behavior because banks’ CSR activities result in customer identification and co-creation. Similarly, banks should welcome the customers’ participation in service design and use their knowledge and skills to improve overall service culture.
Highlights
The banking crises and financial scandals in 2008 hurled many retail banks into mayhem, resulting in their closures, mergers, and acquisitions
Customer confidence was gravely corroded and needed to be fully restored. This falling customer confidence in banking institutions resulted in lower satisfaction and trust, leading to an adverse impact on their loyalty intention, and customer turnover has become a constant scourge of businesses [1]
In this era of fierce competition, organizations are trying to cope with their rivals through different marketing strategies [3], accentuating the fact that incorporating Corporate Social Responsibility (CSR) is an efficient way to sustain the business
Summary
The banking crises and financial scandals in 2008 hurled many retail banks into mayhem, resulting in their closures, mergers, and acquisitions. Customer loyalty has a powerful influence on business performance as it is directly associated with lower marketing costs and higher profitability [2]. In this era of fierce competition, organizations are trying to cope with their rivals through different marketing strategies [3], accentuating the fact that incorporating Corporate Social Responsibility (CSR) is an efficient way to sustain the business. Companies engaged in CSR activities result in better corporate performance thanks to the improvement of customer loyalty [7,8] It becomes a competitive advantage for most of the companies in any business industry [9]
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
