How does corporate social responsibility create customer loyalty? The role of corporate image

Abstract

Purpose: This paper aims to investigate whether corporate image has a mediating effect on the influence of corporate social responsibility (CSR) on customer loyalty in independent hotels. Design/methodology/approach: Data were collected from customers of five-star hotels located in Istanbul in Turkey. The theoretical model was tested with 404 usable data. The results were analyzed by using structural equation modeling (SEM). Findings: Findings show that CSR creates customer loyalty partially through corporate image in the independent hotels. In addition, it was found that the hotels included in the study carried out moderate level of CSR activities. Research limitations/implications: The research model was tested in independent five-star hotels. Further studies could be carried out using different independent hospitality companies. In addition, the research was conducted on a limited sample, as hotel managers were not willing to allow direct contact with customers. Further studies could be carried out on larger samples. Practical implications: This study recommends that independent hotels carry out more CSR activities on social and environmental issues. In addition, direct effect of CSR on customer loyalty is lower than its indirect effect via corporate image. Therefore, if companies desire to create customer loyalty through CSR, they should introduce their CSR activities to customers via communication tools (website, media etc.) Originality/value: This study examines CSR in terms of sustainable development in the independent hotels. Furthermore, it explains relationships between CSR and corporate image and customer loyalty through the principle of generalized reciprocity specified in the theory of social change.