Corporate social responsibility and customer loyalty: The mediating role of service quality and customer satisfaction

Abstract

The study examined the mediating role of service quality and customer satisfaction on the connection between corporate social responsibility (CSR) and customer loyalty of all commercial banks in some selected townships in the Accra Metropolis of Ghana. The study was guided by explanatory research design, quantitative in nature with a questionnaire as its main data gathering instrument. Data gathered was analyzed using partial least square estimation. Primary data were collected from 1,200 customers of the commercial banks in some selected townships in the Accra Metropolis. The major finding of the study was that banks who undertook CSR practices were better positioned to offer better quality service and also tend to satisfy customers well which then translates into greater customer loyalty. Therefore, it was well recommended that management of commercial banks should improve upon their CSR practices in order to maintain their customers. Again, the managers in these commercial banks should note that in order for them to attract and keep customers, improving service quality and customer satisfaction should be a major goal they should thrive to achieve. Thus, the study contributes to our understanding of the means through which CSR contribute to customer loyalty of banks within a developing country context.