Customer Perceived Practice of CSR on Improving Customer Satisfaction and Loyalty

The main purpose of this research is to examine the impact of perceived corporate social responsibility (CSR) practices or initiatives on customer satisfaction and loyalty. A conceptual framework comprises of 4 elements (economic, legal, ethical and philanthropy) developed by Carroll (1991) is used to examine the CSR practices and its impact on customer satisfaction and loyalty. A multivariate likert-scale questionnaire (scale from 1-6) has been developed with one additional dimension (customer satisfaction) and its impact on loyalty. A sample of 152 respondents has been used to collect the data using convenience sampling method. Regression and correlation analysis is conducted using SPSS 20 on both modified and full version of data-set to conform the results of analysis is consistent and accurate. Regression beta coefficient and correlation coefficients were generated to test the hypotheses and to establish the causal effects of economic, ethical, legal, philanthropy on customer satisfaction and loyalty. The results shows that there is a significant and positive impact of CSR dimensions of economic, ethical, and philanthropy on both customer satisfaction and loyalty. The result shows a negative relationship between legal CSR dimensions and customer satisfaction and loyalty. This result is confirmed by correlation analysis as well, which is run on both full version and modified version of data-set generated after exploratory factory analysis. Also this research found that there is significant and strong positive relationship between improved customer satisfaction and loyalty. This study concluded that increasing perceived CSR practices such as economic, ethical and philanthropy CSR will improve both customer satisfaction and loyalty. Therefore manager at corporate sector should take initiatives to increase perceived CSR practices to improve customer satisfaction in order to retain and build loyalty of customer. Further research could be undertaken on different context or by increasing the sample size to test the legal dimension of CSR to confirm previous research finding