The influence of CSR on perceived value, social media and loyalty in the hotel industry

Abdullah Al-Swidi,Abdulalem Mohammed

doi:10.1108/sjme-06-2019-0029

Abstract

Purpose This study aims to examine how perceptions of corporate social responsibility (CSR) activities (i.e. environment, society and stakeholders) enhance perceived value, social media engagement to win customer loyalty in the hotel industry. In addition, it investigates the mediating effects of customer perceived value and social media engagement between CSR activities and customer loyalty. Design/methodology/approach A self-administered survey was conducted on customers in Malaysia. Based on the data collected from 389 customers, the analysis used the structural equation modelling (SEM) approach. The validity and reliability of the measurements were confirmed before the hypotheses of the study have been tested. Findings The results revealed that CSR related to the environment has significant direct and indirect impacts on customer loyalty. In addition, the effect of perceived value and social media engagement on customer loyalty has been supported. The results also demonstrated the mediating role of perceived value and social media engagement between CSR activities and customer loyalty. Research limitations/implications This study advances the understanding of the impact of CSR activities, perceived value and social media engagement on customer loyalty in the hotel industry. Hoteliers can gain benefits by understanding how specific CSR activities can enhance customer perceived value and social media engagement value, thus leads to customer loyalty. Originality/value This study investigates the association between CSR activities, perceived value, social media engagement and customer loyalty, which has been lacking a full investigation in the hospitality literature.

Highlights

As the competition continues among hotels for a larger market share, they require effective marketing strategies to attract customers and meeting their initial expectations and extending this to establishing customer loyalty and intention to revisit (Poon and Lock-Teng Low, 2005; Mohammed et al, 2017)
This study investigates the association between corporate social responsibility (CSR) activities, perceived value, social media engagement and customer loyalty, which has been lacking a full investigation in the hospitality literature
5.1 Theoretical implication From the theoretical perspective, this research makes a significant contribution to marketing literature regarding to how CSR activities influence perceived value, social media and loyalty in the hotel industry by filling the gaps that highlighted by previous researchers, including Arslanagic-Kalajdzic and Zabkar (2017), Su et al (2017), Lee et al (2018), Servera-Francés and Piqueras-Tomás (2019) and Loureiro and Lopes (2019)

Summary

Introduction

As the competition continues among hotels for a larger market share, they require effective marketing strategies to attract customers and meeting their initial expectations and extending this to establishing customer loyalty and intention to revisit (Poon and Lock-Teng Low, 2005; Mohammed et al, 2017) In this case, customers in the hotel industry are becoming more aware and concerned of the inhabitants and resources of the planet (Ghosh et al, 2018), emphasising the significance of healthy environments, preserving natural resources, and understanding the effects of intellectual, emotional and spiritual well-being, which impacts their purchasing and consumption decisions (Ghaderi et al, 2019). Referring to environmental CSR, it includes activities that are concerned with preventing environmental pollution, conserving energy and offering green production/services (Tingchi Liu et al, 2014) It is concerned with better environmental management and business operations related to the environment (Dahlsrud, 2008). Stakeholder activities include returns to investors, community development, treatment of employees, and control and monitoring of suppliers’ behaviour (Dahlsrud, 2008)

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