Investigating the Impacts of Corporate Social Responsibility Initiatives on Customers ‘Loyalty: A Study from Selected Private Banks in Bangladesh
Iqbal, Mohammed Masum; Pramanik, Shah Alam Kabir
As the significance of Corporate social Responsibility (CSR) initiatives on consumer attitudes, behavior, intention and loyalty has increased it remains imperative for the financial institutions especially banks to investigate the effects of CSR initiatives on customers’ loyalty. By taking a model “Causal relationship between CSR initiatives and Customers’ loyalty”, therefore, this study has aimed to trigger the effects of customer centric, ethics, green environment, and philanthropic on customers’ loyalty. A survey has been conducted on 320 visitors and the response rate is 88.75 percent. Initially, an exploratory factor analysis has been directed using SPSS 21 and subsequently Structural Equation Modeling (SEM) has been used to test both the proposed model and hypothesized relationships among the constructs. The result of the study has revealed that the constructs (customer centric, philanthropic, green environment and ethics) have significant impact on customers’ loyalty. The study also revealed that customer centric has the greatest effects on customers’ loyalty while ethics is the least influencing factor on loyalty in context of financial institutions in Bangladesh. The findings of the study will help the marketers of financial institutions to attract and retain their customers ultimately to develop customers’ loyalty and equity of the institutions.
CSR Initiatives, Customers’ Loyalty, Financial Institutions, Financial Institutions Marketing