Linking Corporate Social Responsibility to Customer Loyalty through Co-Creation and Customer Company Identification: Exploring Sequential Mediation Mechanism

Ali Raza, Amer Saeed, Muhammad Khalid Iqbal, Umair Saeed, Imran Sadiq and Naveed Ahmad Faraz
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Ali Raza: Knowledge Unit of Business, Economics, Accountancy, and Commerce, University of Management and Technology, Sialkot 51310, Pakistan
Amer Saeed: School of Business and Economics, University of Management and Technology, Lahore 54770, Pakistan
Muhammad Khalid Iqbal: Knowledge Unit of Business, Economics, Accountancy, and Commerce, University of Management and Technology, Sialkot 51310, Pakistan
Umair Saeed: Business Administration Department, College of Sciences, Ministry of Higher Education, Ibri 511, Oman
Imran Sadiq: School of Business and Economics, University of Management and Technology, Lahore 54770, Pakistan
Naveed Ahmad Faraz: School of Management, Wuhan University of Technology, Wuhan 430070, China

Sustainability, 2020, vol. 12, issue 6, 1-19

Abstract: Promoting corporate social responsibility (CSR) and co-creation has become a crucial relationship marketing strategy for the banks. This research empirically investigates how banks’ CSR activities generate positive customer responses in the form of co-creation, customer–company identification (CCI), and loyalty. This research sheds light on the influence of CSR on customer behavior by analyzing the underlying psychological processes through the sequential mediation of co-creation and CCI. Working with a sample of 280 banking customers in Pakistan, partial least square based structural equation modeling (PLS-SEM) is employed to test the conceptual model. CSR is a multidimensional formative construct that affects customer loyalty both directly and indirectly. Sequential partial mediations of co-creation and CCI are found between CSR activities and customer loyalty. Lastly, CCI has a direct and significant impact on co-creation and customer loyalty. Banks must include CSR in their long-term marketing plans to improve overall customer behavior because banks’ CSR activities result in customer identification and co-creation. Similarly, banks should welcome the customers’ participation in service design and use their knowledge and skills to improve overall service culture.

Keywords: corporate social responsibility; co-creation; customer-company identification; customer loyalty; customer behavior; developing country; sustainability (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (38)

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