Corporate Social Responsibility as a Mediator of the Effect of Brand Awareness and Corporate Reputation on Customer Loyalty

Lovemore Chikazhe, Blessing Chigunha, Martin Dandira, Tendai Silvaziso Mandere, King Christopher Muchenje

Abstract


Factors that promote customer loyalty are of great concern to the banking sector because loyalty predicts business success. The purpose of this study is to examine the mediation role of corporate social responsibility on the effect of brand awareness and corporate reputation on customer loyalty. Data was collected through a cross sectional survey from 405 bank customers. Research hypotheses were tested using the structural equation model. The findings show that corporate social responsibility partially mediates the effect of both brand awareness and corporate reputation on customer loyalty. The results indicate that corporate social responsibility plays a vital role within the banking sector as it mediates the effect of brand awareness and corporate reputation on customer loyalty. If banks engage in successful corporate social responsibility practices, brand awareness and corporate reputation are enhanced and this result in improved customer loyalty. By empirically examining corporate social responsibility as a mediator on the effect of brand awareness and corporate reputation on customer loyalty the study seeks to contribute to the scholarly conversation.


Full Text:

PDF


DOI: https://doi.org/10.5296/bms.v11i1.17141

Copyright (c) 2020 Business Management and Strategy



Business Management and Strategy  ISSN 2157-6068

Email: bms@macrothink.org

Copyright © Macrothink Institute 

To make sure that you can receive messages from us, please add the 'macrothink.org' domain to your e-mail 'safe list'. If you do not receive e-mail in your 'inbox', check your 'bulk mail' or 'junk mail' folders.