Abstract
Purpose – This study aims at investigating the effect of corporate social responsibility perceptions of local people living in Diyarbakır on bank loyalty in terms of banking services and the mediator roles of trust and satisfaction in this effect. Research methodology – Cronbach’s Alpha coefficients, reliability, convergent and discriminant validity and multicollinearity were examined before testing the hypotheses of the research. The validity of the measurement model for the variables that are included in the model was examined by the confirmatory factor analysis. Partial least squares path modelling was used to analyze the research model and hypotheses, and multiple mediation analysis was used to test the mediation effects. The collected data were analyzed by the software SPSS 22.0 and SmartPLS 3.3.0. Findings – The research results exposed that the corporate social responsibility perceptions of bank customers have significant and positive effects on bank loyalty. Furthermore, satisfaction has had partial mediation effects on the relationship between CSR perception and loyalty. Research limitations – The population covers individuals with regular wage or salary who live in Diyarbakır. The survey was conducted between October 1 and December 1, 2019, with convenience sampling technique and 400 questionnaires were collected. Practical implications – When conducting CSR activities, businesses should emphasize that trust and satisfaction have an essential effect as well as loyalty. Originality/Value – This study investigated the simultaneous multiple mediator effects of trust and satisfaction in the relationship between CSR and loyalty.
Highlights
corporate social responsibility (CSR) is an essential issue for those seeking the recipe that today’s businesses should implement and gain value in the eyes of customers
The variance inflation factor (VIF) values in Table 2 that it is much lower than 5 points out that there is no multicollinearity problem for the research. This part of the study includes the demographic characteristics of the local population, descriptive statistics, correlation coefficients and testing the hypotheses formed by the structural equation model
The factor that brings a bank to the forefront in the eyes of the customer is its capacity to show itself in CSR activities
Summary
CSR is an essential issue for those seeking the recipe that today’s businesses should implement and gain value in the eyes of customers. It is not easy to understand clearly whether the real intention of the companies is to take part in social projects or increase the sales volume. CSR activities should be participated and supported by stakeholders regardless of their intentions. Research on the history of CSR goes back to the 1930s when Berle and Means defended the need for more transparency and accountability for the business’s stakeholders. It can be stated that formal research on social responsibility was handled to a great extent in the 20th century; research in this area has increased especially in the last 50 years (Carroll, 1999). It has come to the conclusion that companies should gain a new motivation in their marketing efforts. The understanding of social marketing emerged, and the researchers emphasized that companies should not be indifferent to their social environment
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