The Effect of Corporate Social Responsibility on Customer Loyalty in Mobile Telephone Companies

Abstract

Purpose: The present study aims at developing and empirically testing a research model that presents the influence of Corporate Social Responsibility on corporate image, customer satisfaction and customer loyalty, demonstrating the direct and indirect effects among these structures. Design/Methodology/Approach: The examination of the proposed research model was carried out using a structured questionnaire completed by 358 mobile users in the city of Kavala. The validity and the reliability of the questionnaire were examined, while for the data analysis the Structural Equation Modeling Technique was used with LISREL 8.80. Findings: The findings of this study indicate that Corporate Social Responsibility have not a significant direct effect on customer loyalty, while corporate image and customer satisfaction have a significant positive effect on customer loyalty. Moreover, the findings provide practical new insights in understanding how a mobile company’s CSR policy could be developed and implemented to help enhance customer loyalty through the mediating effects of customer satisfaction. Practical Implications: The companies would like to understand the implications of its CSR policy implementation, especially in enhancing its corporate image and customer satisfaction in terms of reputation and impression. Originality/Value: This study is a pioneer research in addressing the mediating role played by customer satisfaction for strengthening the relationship between CSR and customer loyalty in mobile phone companies.