The Effects of Corporate Social Responsibility on Customer Loyalty: The Mediating Effect of Reputation in Cooperative Banks Versus Commercial Banks in the Basque Country

The marketplace has seen significant growth in the demand for ‘ethical’ behavior, and banks are seeking to leverage customers’ perception in order to build a sustainable competitive advantage. In consequence, the concepts of corporate social responsibility and corporate reputation are of vital conce...

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Bibliographic Details
Authors: Aramburu, Izaskun Agirre (Author) ; Pescador, Irune Gómez (Author)
Format: Electronic Article
Language:English
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Published: Springer Science + Business Media B. V 2019
In: Journal of business ethics
Year: 2019, Volume: 154, Issue: 3, Pages: 701-719
Further subjects:B Moderation
B Perceived CSR
B Second-order model
B Reputation
B Loyalty
B Mediation
B Cooperatives
Online Access: Volltext (lizenzpflichtig)
Description
Summary:The marketplace has seen significant growth in the demand for ‘ethical’ behavior, and banks are seeking to leverage customers’ perception in order to build a sustainable competitive advantage. In consequence, the concepts of corporate social responsibility and corporate reputation are of vital concern for academics and managers in terms of their potential impact on customers. This study seeks to contribute to the literature by examining the mediating role of corporate reputation on the relationship between perceived corporate social responsibility (conceptualized as a formative second-order formative construct) and customer loyalty. The study also takes into consideration the role played by bank type in the mediation effect. To achieve this aim, a study was performed comprising 572 personal surveys in the Basque Country. The results showed that corporate reputation partially mediated the relation between corporate social responsibility and customer loyalty. On the other hand, bank type is shown not to moderate the mediation effect. The results have important implications for practitioners wishing to manage their relations with customers.
ISSN:1573-0697
Contains:Enthalten in: Journal of business ethics
Persistent identifiers:DOI: 10.1007/s10551-017-3438-1