||Corporate Social Responsibility and Consumer Loyalty: The Roles of Consumer-company Identification, Consumer Satisfaction and Brand Preference
||Institute of Telecommunications and Management
Corporate social responsibility (CSR)
Social identity theory
Expectation disconfirmation theory
The concept of CSR has become an increasingly important business strategy of companies worldwide. CSR activities inform consumers about a company’s identity, differentiate it from its competitors, and build up long-term relationships with its customers. Consumer loyalty is a typical way to express consumer satisfaction with a company’s performance, and it is closely connected with profitability. The aim of this study is to examine whether the CSR initiatives of telecommunications companies enhance the level of consumer loyalty for their subscribers. Based on social identity theory and expectation disconfirmation theory, this study models CSR as an antecedent of consumer loyalty by considering three constructs: consumer-company (C-C) identification, consumer satisfaction, and brand preference. The extent of and the causal relationships among the constructs in the research model are empirically examined with data collected via a face-to-face questionnaire survey from 408 telecommunications subscribers in Taiwan. An ANOVA is used to determine whether or not the consumer loyalty level of the respondents varies with their demographic characteristics. In addition, C-C identification, consumer satisfaction, and brand preference are used to test the mediating effect between CSR and consumer loyalty. Descriptive statistics analysis and confirmatory factor analysis (CFA) are conducted to provide a basic summary of the sample data and to examine the discrepancy between the hypotheses and the empirical data to test whether the proposed theoretical model fits empirical data. Subsequently, structural equation modeling (SEM) is applied to test the causal model and understand the relationship among constructs.
The results of the study are summarized as follows: It was found at a level of statistical significance that CSR positively influences C-C identification and consumer satisfaction; C-C identification positively influences consumer satisfaction and consumer loyalty; consumer satisfaction positively influences brand preference, and brand preference positively influences consumer loyalty. However, no significant relationship was found between CSR and brand preference or between consumer satisfaction and consumer loyalty. In particular, the comparison of the standardized path coefficients revealed that C-C identification had the strongest impact on consumer loyalty, followed by brand preference, consumer satisfaction, and CSR. The association between CSR and consumer loyalty was found to be partially mediated by C-C identification, consumer satisfaction, and brand preference. Further, the ANOVA results revealed there to be significant relationships among demographic characteristics (i.e., monthly fee, mobile phone operator, and original adoption time of mobile phone operator) and consumer loyalty. Finally, managerial suggestions are provided for telecommunications companies to help them increase their CSR activities in order to increase consumer loyalty.
Table of Contents.......................................I
List of Tables.........................................II
List of Figures.......................................III
1.1 Background and Motivation...........................1
1.2 Research Objectives.................................5
2. Theoretical Background...............................7
2.1 Social Identity Theory..............................7
2.2 Expectation Disconfirmation Theory..................9
3. Hypothesis Development..............................12
3.1 Corporate Social Responsibility....................12
3.2 Consumer-company Identification....................13
3.3 Consumer Satisfaction..............................14
3.4 Brand Preference...................................16
3.5 Consumer Loyalty...................................18
4. Research Model and Design...........................24
4.1 Research Model.....................................24
4.2 Measurement Development............................24
4.3 Data Collection and Sampling.......................28
4.4 Analysis Procedure.................................28
5. Empirical Results...................................31
5.1 Descriptive Statistics Analysis....................31
5.1.1 Respondent Profile...............................31
5.1.2 Means and Standard Deviation of Items............32
5.1.3 Analysis of Variance on Consumer Loyalty.........35
5.2 Confirmatory Factor Analysis.......................36
5.3 Structural Equation Modeling.......................39
5.4 Mediation Analysis.................................44
6. Conclusion and Discussion...........................47
6.1 Summary of the Results.............................47
6.2 Managerial Implications............................48
6.3 Limitations and Future Research....................49
Appendix A: Items in Questionnaire.....................66
Appendix B: Items in Chinese Questionnaire.............68
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