Relationship between ethical corporate social responsibility and customer loyalty: the mediating role of customers’ gratitude
Article Sidebar
Main Article Content
Abstract
The purpose of this study was to examine whether customer gratitude mediates the association between ethical corporate social responsibility and customer loyalty. A cross-sectional survey was adopted. A total of 430 individual customers of retail banks located in some selected towns in north-east region of Nigeria were selected using convenience sampling. Structured questionnaires were used to collect. Descriptive statistics and partial least square structural equation modeling were used in data analysis. Finding showed that ethical corporate social responsibility positively and significantly affected customer loyalty. Also, a positive and significant effect of ethical corporate social responsibility on customer gratitude was observed. Furthermore, it was observed that customer gratitude and customer loyalty are positively associated. Also, customer gratitude mediated between ethical corporate social responsibility and customer loyalty. This study concluded that customer gratitude mediated the influence of ethical corporate social responsibility on customer loyalty. The finding of this study will help managers of Nigerian retail banks to develop ethical corporate social practices which strongly create feelings of gratitude among their banks’ customers in order to take advantage of customers’ gratitude, and eventually cultivate customers’ loyalty.
Downloads
Article Details
This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
1. Proposal of Policy for Free Access Periodics
Authors whom publish in this magazine should agree to the following terms:
a. Authors should keep the copyrights and grant to the magazine the right of the first publication, with the work simultaneously permitted under the Creative Commons Attribution-NonCommercial-ShareAlike 4.0 that allows the sharing of the work with recognition of the authorship of the work and initial publication in this magazine.
b. Authors should have authorization for assuming additional contracts separately, for non-exclusive distribution of the version of the work published in this magazine (e.g.: to publish in an institutional repository or as book chapter), with recognition of authorship and initial publication in this magazine.
c. Authors should have permission and should be stimulated to publish and to distribute its work online (e.g.: in institutional repositories or its personal page) to any point before or during the publishing process, since this can generate productive alterations, as well as increasing the impact and the citation of the published work (See The Effect of Free Access).
Proposal of Policy for Periodic that offer Postponed Free Access
Authors whom publish in this magazine should agree to the following terms:
a. Authors should keep the copyrights and grant to the magazine the right of the first publication, with the work simultaneously permitted under the Creative Commons Attribution-NonCommercial-ShareAlike 4.0 [SPECIFY TIME HERE] after the publication, allowing the sharing of the work with recognition of the authorship of the work and initial publication in this magazine.
b. Authors should have authorization for assuming additional contracts separately, for non-exclusive distribution of the version of the work published in this magazine (e.g.: to publish in institutional repository or as book chapter), with recognition of authorship and initial publication in this magazine.
c. Authors should have permission and should be stimulated to publish and to distribute its work online (e.g.: in institutional repositories or its personal page) to any point before or during the publishing process, since this can generate productive alterations, as well as increasing the impact and the citation of the published work (See The Effect of Free Access).
d. They allow some kind of open dissemination. Authors can disseminate their articles in open access, but with specific conditions imposed by the editor that are related to:
Version of the article that can be deposited in the repository:
Pre-print: before being reviewed by pairs.
Post-print: once reviewed by pairs, which can be:
The version of the author that has been accepted for publication.
The editor's version, that is, the article published in the magazine.
At which point the article can be made accessible in an open manner: before it is published in the magazine, immediately afterwards or if a period of seizure is required, which can range from six months to several years.
Where to leave open: on the author's personal web page, only departmental websites, the repository of the institution, the file of the research funding agency, among others.
References
Aramburu, A. A., & Pescador, I. G. (2017).The effects of corporate social responsibility on customer loyalty: The mediating effect of reputation in cooperative banks versus commercial banks in the Basque country, Journal of Business Ethics, 154(3), 701-719. DOI.10.1007/s10551-017-3438-1
Afrinvest, (2018). The virtuous cycle-again! The Nigerian economy and financial market/2017 review & 2018 outlook. Retrieved From: https://www.afrinvest.com/.../2018/.../Nigerian-Economy-and-Financial-Market-2017-.
Barlett, M. Y., & DeSteno, D. (2006). Gratitude and pro social behavior helping when it costs you, Psychological Science, 17(4), 319-325. Retrieved from: https //www.uwc.ac.za
Berenbeim, R. E. (2006). Business ethics and corporate social responsibility defining an organization’s ethics brand. Address delivered to the Ethics and Compliance Conference New York, May 12, 2006. Retrieved from: https //www.uwc.ac.za
Berg, H., & Lidfors, L. (2012). The effect of perceived corporate social responsibility on customer loyalty an empirical study into consumer behaviour on the Swedish chocolate market, Thesis for the award of master degree in Marketing, Linnæus University. Retrieved from: www.diva-portal.org/smash/get/diva2:533436/FULLTEXT01.pdf
Bhattacharya, C. B., Korschun, D., & Sen, S. (2009). Strengthening stakeholder-company relationship through mutually beneficial corporate social responsibility initiatives. Journal of Business Ethics, 85, 257-272. DOI 10.1007/s10551-008-9730-3
Bhattacarya, C. B., & Sen, S. (2004). Doing better at doing good: When, why, and how consumers respond to corporate social initiatives, California Management Review, 47(1), 9-74. Retrieved from: www.davideacrowther.com/csrmodule/csrreading4b.pdf
Carroll, A. B. (1979). A three-dimensional conceptual model of corporate performance. Academy of Management Review, 4(4), 497-505. Retrieved from: URL: http://www.jstor.org/stable/257850
Carroll, A. B. (1991). The pyramid of corporate social responsibility: toward the moral management of organizational stakeholders. Business Horizon, 34(4), 39-48. Retrieved from: AB Carroll - Business horizons, 1991 - cf.linnbenton.edu
Carroll, A. B. (2016). Carroll’s pyramid of corporate social responsibility: Taking another look. International Journal of Corporate Social Responsibility, 1(3), 1-8. DOI: 10.1186/s4099.016-004-6
Chang, Y. H., & Yeh, C. H. (2017). Corporate social responsibility and customer loyalty in intercity bus services. Transport Policy, 59, 38-45. http://dx.doi.org/10.1016/j.tranpol.2017.07.001
Dick, A. S., & Basu, K. (1994). Customer loyalty: Toward an integrated conceptual Framework. Journal of the Academy of Marketing Science, 22(2), 99-113. Retrieved from: https://www.uwc.ac.za
Diwani, P. P. Sinha, P. K., & Mathur, S. (2016). Role of gratitude and obligation in long term relationships. Journal of Retailing and Consumer Services, 31, 143-156. http://dx.doi.org/10.1016/j.jretconser.2016.01.005.
Du, S., Bhattacharya, & Sen, S. (2010). Maximizing business returns to corporate social responsibility (CSR): The role of CSR communication. International Journal of Management Reviews, 8-19. DOI:10.1111/j.1468-2370.2009.00276.x
Faza-e-Hasan, S. M., Lings, I. N., Mortimer, G., & Neale, L. (2017). How gratitude influences customer word of mouth intentions and involvement: The mediating role of affective commitment. Journal of Marketing Theory and Practice, 25(2), 200-211. DI:10.1080/10696679.2016.1270769
Fornell, C., & Larcker, D. F. (1981). Evaluating structural equation models with unobservable variables and measurement error. Journal of Marketing Research, 18(1), 39–50. https://doi-org.ezproxy.uwc.ac.za/10.11771002224378810/800104
Goyal, P., & Chanda, U. (2017). A bayesian network model on the association between CSR, perceived service quality and customer loyalty in Indian banking industry. Sustainable Production and Consumption, 10, 50-65. http.dx.doi.org/10.1016/j.spc.2016.12.001
Salmones, M. M. G., & Bosque, I. R. (2011). Corporate social responsibility and loyalty in services sector. EsicMarket, 138, 199-221. Retrieved from: www.esic.edu/documentos/revistas/esicmk/110105_124149_I.pdf
Salmones, M. M., Crespo, A. H., & Bosque, I. R. (2005). Influence of corporate social responsibility on loyalty and valuation of services. Journal of Business Ethics, 61, 369-385. DOI 10.1007/s10551-005-5841-2
Gunesh, R. V., & Geraldine, R. W. (2015). Do corporate social responsibility practices of banks in Mauritius lead to satisfaction and loyalty? Studies in Business and Economics, 10(2), 128-144. DOI 10.1515/sbe-2015-0025
Hair, F. J. JR., Bush, R. P., & Ortaniau (2009). Marketing research within a changing environment. 3rd edition, McGraw-Hill/Irwin, New York,
Hair, J. F., Black, W. C., Babin, B. J., & Anderson, R. E. (2010). Multivariate data Analysis (7th ed.), Pearson Prentice Hall, New Jersey.
Hair Jr., J., Sarstedt, M., Hopkins, L., & Kuppelwieser, V. G. (2014). Partial least squares structural equation modeling (PLS-SEM) An emerging tool in business Research. European Business Review, 26(2), 106-121. DOI 10.1108/EBR-102013-0128
He, Y., & Lai, K. K. (2014). The effect of corporate social responsibility on brand loyalty: the mediating role of brand image. Total Quality Management, 25(3), 249-263. http://dx.doi.org110.1080/14783363.2012.661138
Huang, M. H. (2015). The influence of relationship marketing investments on customer gratitude in retailing. Journal of Business Research, 68, 1318-1323. http://dx.doi.org/10.1016/j.jusres.2014.12.081
Išoraitė, M. (2016). Customer loyalty theoretical aspects. Ecoforum, 5(2), 292-299. Retrieved from: www.ecoforumjournal.ro › eco › article › download
Jain, M., & Jaiswal, S. J. (2016). Gratitude: Concept, benefits and cultivation. International Journal of Engineering Technology Science and Research, 3(5), 207-211. Retrieved from: www.ijetsr.com/images/short_pdf/1463223114_giit295_ijetsr_(2).
Jones, T. M. (1995). Instrumental stakeholder theory: A synthesis of ethics and economics. Academy of Management Review, 20(2), 404-437. Retrieved from https://edisciplinas.usp.br/pluginfile.php/.../Ficha%207_Jones%20%281995%29.pdf
JR., J. F. H., Bush, R. P., & Ortinau, D. J. (2009). Marketing research in a digital, information environment. edition 4. McGraw-Hill, Boston.
Kaiser, H. F. (1974). An index of factorial simplicity. Psychometrika, 39(1), 31-36. Retrieved from: https://jaltcue.org/files/articles/Kaiser1974_an_index_of_factorial_simplcity.pdf
Kim, J., Song, H., Lee, K. L., & Lee, J. Y. (2017). The impact of four CSR dimensions on a gaming company’s image and customers’ revisit intentions. International Journal of Hospitality Management, 61, 73-81. http.dx.doi.org/10.1016/j.ijhm.2016.11.005
Kim, S. B., & Kim, D. Y. (2016). The influence of corporate social responsibility, ability, reputation, and transparency on hotel customer loyalty in the U.S.: A gender-based approach. SpringerPlus, 5(1537), 1-13. DOI 10.1186/s40064-016-32203
Kodua, P., Narteh, B., Braimah, M., & Mensah, P. (2016). The role of corporate social responsibility in influencing brand loyalty in the Ghanaian telecommunication industry. Journal of Business and Economics, 7(11), 1895-1906. DOI: 10.15341/jbe (2155-7950)11.07.2016/015
Lentner, C., Szegedi, K., & Tatay, T. (2015). Corporate social responsibility in the banking sector. Public Finance Quarterly, 1, 95-103. Retrieved from: https://www.researchgate.net/.../303697394_Corporate_Social_Responsibility_in_the_
Mandhachitara, R., & Poolthong, Y. (2011). A model of customer loyalty and corporate social responsibility. Journal of Services Marketing, 25(2), 122-133. DOI.10.1108/08876041111119840
Martinez, P., & Bosque, I. R. (2013). Corporate social responsibility and customer loyalty: The roles of trust, customer identification with the company and satisfaction. International Journal of Hospitality Management, 35, 89-99. http://dx.doi.org/10.1016/j.ijhm.2013.05.009
McCain, S. C., Lolli, J. C., Liu, E., & Jen. (2019). The relationship between casino corporate social responsibility and casino loyalty. Tourism Economics, XX(X), 1-24. DOI10.1177/1354816618808077
Mccullough, M. E., Kilpatrick, S. D., Emmond, R. A., & Larson, D. B. (2001). Is gratitude a moral affect?. Psychological Bulletin, 27(2), 249-266. DOI.10.1037/00332909.127.2.249
McCullough, M. E., Kimeldorf, M. B., & Cohen, A. D. (2008). An adaptation for altruism the social causes, social effects, and social evolution of gratitude. Current Directions in psychological Science, 17(4), 281-285. Retrieved from: www.uwc.ac.za
McDonald, L. M., & Rundle-T. (2008). Corporate social responsibility and bank customer satisfaction a research agenda. International Journal of Bank Marketing, 26(3), 170-182. Retrieved from: citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.334.3070&rep=rep1.
Moss, M. R. (2002). Spreading the ethical word, The Information Management Journal, 36(4), 42-46. Retrieved from: https://www.uwc.ac.za
Mulaessa, N., & Wang, H. (2017). The effect of corporate social responsibility activities (CSR) on consumers purchase intention in China: Mediating role of consumer support for responsible business. International Journal of Marketing Studies, 9(1), 73-81. doi:10.5539/ijms.v9n/p73
Ogunowora, B., Stackhouse, M., & Oh, W. Y. (2018). Media depictions of CEO ethics and stakeholders support of CSR initiative: The mediating roles of CSR motive attributions and cycinism. Journal of Business Ethics, 150, 525-540. https://doi.org/10.1007/s10551-016-3173-z
Pallant, J. (2005). SPSS survival manual: A step by step guide to data analysis using spss for windows (version 12), Open University Press
Pallant, J. (2010). SPSS survival manual: a step by step guide to data analysis using SPSS (4th ed.), Open University Press, New York.
Palmatier, R. W., Jarvis, C. B., Bechkoff, J. R., & Kardes, F. R. (2009). The role of customer gratitude in relationship marketing, Journal of Marketing, 73, 1-18. Retrieved from: https://pdfs.semanticscholar.org/91fb/df3a9852bc08fbc8836cb026df6Xb0b724.f
Pan, Y., Sheng, S., & Xie, F. T. (2012). Antecedents of customer loyalty: An empirical synthesis and reexamination. Journal of Retailing and Consumer Services, 19, 150-158. Doi:10.1016/j.jretconser2011.11.004
Park, J. C., & Choi, J. (2016). Relationship between corporate philanthropy and consumer loyalty-The mediating role of gratitude, trust and commitment: South Korean consumer perspectives. Academy of Marketing Studies Journal, 20(1), 11-17. Retrieved from: https://www.abacademies.org/articles/amsjvol20no12016.pdf
Podsakoff, P. M., MacKenzie, S. B., Lee, J. Y., & Podsakoff, N. P. (2003). Common method biases in behavioral research: A critical review of the literature and recommended remedies. Journal of Applied Psychology. 88(5), 879–903. Retrieved from: www.researchgate.net › publication › 279796507_Comm
Romani, S., Grappi, S., & Bagozzi, R. P. (2013). Explaining consumer reactions to corporate social responsibility: The role of gratitude and altruistic values. Journal of Business Ethics, 114, 193-206. DOI 10.1007/s10551-012-1337-z
Scheffer, J. (2002). Dealing with missing data. Research letters in the Information and Mathematical Sciences, 3, 153-160. Retrieved from: exec-ed.ac.nz › Colleges ›IIMS › RLIMS › Volume03
Simon, F. (2013). The influence of empathy in complaint handling: Evidence of gratitudinal and transactional routes to loyalty. Journal of Retailing and Consumer Services, 20, 599-608. http://dx.doi.org/10.1016/j.jretconser.2013.05.003
Slavova, I. (2013). Strategic perspective of corporate social responsibility. Economic Alternative. 13, 90-105. Retrieved from https://www.unwe.bg/uploads/Alternatives/A09-03.2013.pdf
Stanisavljević, M. (2017). Does Customer loyalty depend on corporate social responsibility? NašeGospodarstvo/Our Economy, 63(1), 38-46. DOI:10.1515/ngoe-20170004
Szczepańska, K., &Gawron, P. P. (2011). Changes in approach to customer loyalty. Contemporary Economics. 5(1), 60-69. DOI:10.5709/ce.1897-9254.5
Tabachnick, B. G., & Fidell, L. S. (2007). Using multivariate statistics (5th ed.). Pearson, Boston
Tian, L., Du. M., & Huebner, E. S. (2015). The effect of gratitude in elementary school students’ subjective well-being in schools: The mediating role of pro social behaviour. Soc. Indic Res, 122, 887-904. DOI.10.1007/s11205-014-0712-9
Tong, C., Wong, A. T., & Hsiang, L. C. L. L. (2017). The relationship between corporate social responsibility and customer satisfaction in Taiwan farmer association. Journal of Economics, Management and Trade, 18(20), 1-13. DOI:10.9734/JEMT/2017/34279
World Bank Group, (2017). Federal Republic of Nigeria diagnostic review of financial consumer protection key findings and recommendations. Retrieved from: documents.worldbank.org/.../pdf/125964-WP-P160136-PUBLIC-NIGERIADiagnosti...
Xie, C., & Bagozzi, R. P. (2014). The role of moral emotions and consumer values and traits in the decision to support nonprofits. Journal of Nonprofit & Public Sector Marketing, 26, 290-311. DOI:10.1080/10495142.2014.965064
Xie, C., Bagozzi, R. P., & Gronhaug, K. (2015). The role of moral emotions and individual differences in consumer responses to corporate green and non-green actions. Journal of the Academy Marketing Science, 43, 333-356. DOI 10.1007/s11747-014-0934-5.
Xie, C., Bagozzi, R. P., & Gronhaug, K. (2019). The impact of corporate social responsibility on consumer brand advocacy: The role of moral emotions, attitudes and individual differences. Journal of Business Research, 95, 514-530. https://doi.org/10.1016/j.busres.2018.07.043
Yuen, K. F., Thai, V. V., & Wong, Y. D. (2016). Are customers willing to pay for CSR? A study of individuals -specific mediators. Total Quality Management, 27(8), 912-926. http://dx.doi.org/10.1080/14783363.2016./187992
Zikmund, W. G., Ward, S., Lowe, B., & Winzar, H. (2007), Marketing research Asia pacific edition, Cengage Learning Australia Pty Limited, South Melbourne.