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The impact of corporate social responsibility on customer loyalty in hypermarkets: A new socially responsible strategy

Abstract:

The purpose of this paper is to contribute to knowledge on the impact of corporate social responsibility (CSR) activities on retailers' performance (hypermarkets). An analysis using a comprehensive conceptualization of CSR reveals that CSR has positive implications for hypermarkets' performance and illustrates which CSR dimensions are the most important to focus on. For this purpose, this study enhances its empirical validity by collecting data from 667 respondents in Spain and testing the hypothesis applying partial least squares structural equation modeling. The study finds that CSR is positively influencing customer loyalty, and customer satisfaction, image, and quality also intervened in their relationships. In particular, a new finding of the study highlights the importance of the mediating role played by image and quality in enhancing the effect of CSR on satisfaction. The research findings provide useful insights into how hypermarkets should develop a CSR strategy that would enhance customer loyalty.