INVESTIGATION OF CUSTOMER LOYALTY AND CUSTOMER SATISFACTION WITH RESPECT TO CORPORATE SOCIAL RESPONSIBILITY: A MODEL FOR THE INDIAN BANKING INDUSTRY

This paper aims to study the roles of corporate social responsibility (a non-service related concept) and perceived service quality (a service-related concept) in determining the attitudinal and behavioral loyalty and satisfaction of customers in the retail banking sector in India. The study is quantitative in nature and uses the responses of 1067 respondents who answered a survey questionnaire. Data analysis was performed using partial least squares (PLS), a variance based structural equation modeling method. The results of the study demonstrate that corporate social responsibility (CSR) has a significant strong and positive association with attitudinal loyalty and satisfaction. While the results are clear and have strong salience for the retail banking industry, future research should take into account the specific industry context within the national culture. The study provides a set of findings relating to CSR initiatives and perception of service quality that could be readily incorporated into banks’ corporate strategic plans. The paper demonstrates an empirical operationalization of CSR initiatives measured from the customers’ point of view, and from which banks could learn for corporate strategy development.