scholarly journals Customers trust mediation: effect of CSR and service quality towards e-WOM

Author(s):  
Ni Made Rastini ◽  
Nyoman Nurcaya

This study aims to explain the effect of Corporate Social Responsibility activities, service quality on customer trust in PT. Bali Regional Development Bank and explained that customer trust encourages customers to do e-word of mouth to others. To achieve this goal, 100 people are used by Bank X customers spread across Bali Province and will be taken by purposive sampling with questionnaires as the method of data collection. Data is processed using Structural Equation Modeling analysis tools. The results of this study indicate that trust mediates the effect of service quality and corporate social responsibility to e-WOM at PT Bank X. The results of this study are expected to be able to contribute ideas to the banking industry, especially PT. Bank X in building long-term trust. The long-term trust of customers will make PT. Bank X can still compete and even be superior to other banks operating in Bali Province. The advantages of PT. BPB Bali will affect the pace of development in Bali Province through the assistance of MSMEs as one of the CSR programs that it does.

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Niki Glaveli

Purpose This study aims to uncover the underlying multiple intervening mechanisms between corporate social responsibility (CSR) and customer loyalty. Social identity and social exchange theories offer the ground for prediction that the primary outcomes of CSR initiatives are customer–company (C–C) identification and customer trust, which in turn affect customer loyalty. Also, the differential effect of CSR behaviors toward specific stakeholder groups on customer attitudes and behaviors are examined. Design/methodology/approach Data were collected from 333 customers of telecommunication companies in Greece. Structural equation modeling was used to test the postulated relationships. Findings The findings demonstrate that both C–C identification and customer trust intervene in the relationship between customer perceptions of CSR and customer loyalty; however, the identification mechanism is stronger than the trust mechanism in building customer loyalty while C–C identification seems to drive customer trust. Moreover, out of the three CSR components (customers, employees, and society/environment) that were considered as relevant to customers and were investigated, customer-centric activities were found to be the stronger predictor of both C–C identification and customer trust. Also, CSR toward society/environment was found to positively influence C–C identification. Practical implications The findings of this research can assist practitioners in effectively conceptualizing CSR image from a customers’ point of view and designing their company’s CSR and communication strategies to boost positive customer responses and strong long-term relationships. Originality/value The current study provides further insights into the complex relationship between CSR and customer responses and the impact that different CSR activities may have on customers.


2017 ◽  
Vol 21 (2) ◽  
Author(s):  
Rizal E Halim ◽  
Ahmadan Maulana Hermawan

In addition to running the rules set by the government, the activity of Corporate Social Responsibility (CSR) is also carried out by the company in increasing customer loyalty. This study aims to analyze the influence of CSR activities at the local aircraft company and local banking company to customer loyalty mediated by customer trust,C-C(Consumer-Company) identification, and customer satisfaction. Selection of these two industries because ofgrowththat hasoccurredeveryyear. The sample was consumers who have used the services of local aircraft in the last six months and consumers were registered as clients of local banks in the six months before the study began. This study uses Structural Equation Modeling (SEM) and found that for consumers from local aircraft, the company's CSR activities significantly affect customer loyalty through mediation of customer trust, while consumers from  local bank, CSR activities significantly affect the customer loyalty through mediation of c-cidentification.


2021 ◽  
Vol 10 (2) ◽  
pp. 191
Author(s):  
Delia Anindita Prashella ◽  
Kurniawati Kurniawati ◽  
Herfin Fachri ◽  
Prita Karina Diandra ◽  
Taryono Aji

ABSTRACT This article examines the effect of Corporate Social Responsibility (CSR) programs on customer loyalty that is mediated by service quality, trust and electorinic customer satisfaction. Using a sample of 207 BUKU 4 bank customers in Indonesia who have accounts for more than six months. The survey was conducted by filling out an online questionnaire. Data analysis used Structural Equation Modeling (SEM). The results obtained from this study indicate that CSR mediated by electronic service quality, trust, and customer satisfaction overall has a positive influence on customer loyalty of banks in Indonesia. This study reveals that the bank is not only oriented towards business profit, but also carry out CSR programs in a sustainable manner. The CSR program is considered important, because it can build effective communication with customers and prospective customers. It can also increase customer awareness. In addition, currently the technology owned by the bank will be a factor that can build consumer loyalty. ABSTRAK Artikel ini menguji pengaruh program Corporate Social Responsibility (CSR) terhadap loyalitas pelanggan yang dimediasi oleh kualitas layanan, kepercayaan dan kepuasan pelanggan elektronik. Menggunakan sampel 207 nasabah bank BUKU 4 di Indonesia yang memiliki rekening lebih dari enam bulan. Survei dilakukan dengan mengisi kuesioner online. Analisis data menggunakan Structural Equation Modelling (SEM). Hasil yang diperoleh dari penelitian ini menunjukkan bahwa CSR yang dimediasi oleh electronic service quality, trust, dan customer satisfaction secara keseluruhan berpengaruh positif terhadap loyalitas nasabah bank-bank di Indonesia. Studi ini mengungkapkan bahwa bank tidak hanya berorientasi pada keuntungan bisnis, tetapi juga menjalankan program CSR secara berkelanjutan. Program CSR dinilai penting, karena dapat membangun komunikasi yang efektif dengan pelanggan dan calon pelanggan. Hal ini juga dapat meningkatkan kesadaran pelanggan. Selain itu, saat ini teknologi yang dimiliki bank akan menjadi faktor yang dapat membangun loyalitas konsumen.JEL: M30, M31, M39


2022 ◽  
Vol 5 (2) ◽  
pp. 110-128
Author(s):  
Jawad Farisi ◽  
Gancar Candra Premananto

At the end of 2019, a global pandemic began to hit the whole world, including Indonesia. This seems to have influenced the consumer confidence index. Consumer confidence in current economic conditions has weakened due to weakening incomes and reduced job availability. The existence of problems related to the decrease in the level of consumer confidence will be very detrimental to the company if the solution is not immediately considered. The purpose of this study was to examine and analyze the effect of corporate social responsibility on corporate reputation, word of mouth and customer trust as well as the effect of corporate reputation and word of mouth on customer trust. This research applies a quantitative approach with the type of research applied is causal research. The population in this study were 344 consumers of PT Petrokimia Gresik (PG), while the sample used in the study was 185 people.Data analysis in this study uses inferential statistics, which is an analysis aimed at proving the hypothesis using structural equation modeling - AMOS. The results of this study found that corporate social responsibilityprovides a significant effect on corporate reputation, word of mouth and consumer trust. Then corporate reputation and word of mouth are also proven to have a significant effect on consumer trust.


2021 ◽  
Vol 13 (8) ◽  
pp. 4548
Author(s):  
Qingyu Zhang ◽  
Sohail Ahmad

Corporate social responsibility (CSR) in management domains is a well-known concept that links corporate interests and environmental/community values. CSR is considered a strategic policy that offers environmental and social competitive advantages. Organizations consider that CSR-based goodwill provides a tactical competitive edge and sustainable growth. The goal of this paper is to show how CSR programs affect consumers’ purchasing intention in the context of Pakistan. In addition, the effect of customer awareness has been studied as a moderator between CSR and purchasing intention. To this end, the study has conducted a survey and gathered Pakistani customers’ responses, and structural equation modeling has been used to evaluate the results. The study concludes that CSR activities favorably affect customer purchasing intentions directly as well as indirectly through improving brand image and trust, and customer awareness of CSR activities plays a moderating role. The implications and future research directions are discussed.


2017 ◽  
Vol 9 (2) ◽  
Author(s):  
Christina Esti Susanti

In recent business competition, marketing managers try to satisfying consumers and building stable-long term relationship between company and consumer. The relationship needs consumer’s trust to company. That is why marketing managers are interested in knowing the impact of trust, loyalty and corporate social responsibility (CSR) toward customer retention (repurchase intention) in order to develop the long term profitability of the company. The long term relationship with consumers results in profitability and also impacts of survival and company development. In other word, trust influences toward loyalty and consumer retention. In the same moment, it is not surprising that academicians and practitioner effort to understand trust, customer loyalty, repurchase intention and CSR. This research examines firstly, influence of customer trust toward customer loyalty. Secondly, the research examines influence of customer loyalty toward repurchase intention. Thirdly, the research examines the role of perceived CSR as a moderating variable on the influence customer trust toward customer loyalty. The packaged-drinking water Aqua is taken as the research context because the Aqua company have donated 10 litter clean water in East Indonesia for each of one litter consumer buying. The result of the research shows that perceived CSR play a strong and positive role of influencing trust toward loyalty. Otherwise, trust influences strongly toward loyalty and loyalty influences strong enough toward repurchase intention. The result is expected to give managerial benefit for Aqua Company and also theoretical development in marketing related to the moderation role of perceived CSR in the influence of trust toward loyalty and repurchase intention.


2018 ◽  
pp. 1042-1059
Author(s):  
Ari Setiyaningrum ◽  
Vincent Didiek Wiet Aryanto

Corporate ethics (CE) and corporate social responsibility (CSR) have been considered as the main determinants of companies' success as well as sustainability for company's viability. Both of them potentially affects on consumer buying behavior. This study aims at exploring the basic issue on CE and CSR. In addition, this study examines whether good corporate ethics and CSR engagement of companies always lead to positive consumer response in the context of controversial tobacco's company. Data collected by distributing questionnaires to the 318 respondents. By means of structural equation modeling (SEM) to examine the proposed model, it indicated that the more well-defined of corporate ethics lead to the better evaluation of CSR activities, the more well-defined of corporate ethics and the better evaluation of CSR activities lead to the good corporate reputation. In addition, the good corporate reputation leads to the higher corporate trust, and the higher corporate trust lead to the stronger consumers bonding.


2018 ◽  
Vol 13 (6) ◽  
pp. 255 ◽  
Author(s):  
Peter K. Turyakira

Businesses are increasingly required to address the demands of key stakeholders, in addition to those of shareholders. There is an increasing role of corporate social responsibility (CSR) to large businesses and small and medium enterprises (SMEs) alike. However, research to support the degree of the application of CSR activities to SMEs with respect to customer loyalty is limited. The purpose of this study was to examine the selected CSR activities that impact the customer loyalty of SMEs. A self-administered questionnaire was distributed to selected SMEs in Kampala District, while Structural Equation Modeling was utilised to determine the influence of independent variables on the dependent variable. The study findings revealed that the selected CSR activities (Society-oriented CSR activities, Market-oriented CSR activities and Environmental-oriented CSR activities) positively influence the Customer loyalty of SMEs.


2015 ◽  
Vol 5 (3) ◽  
pp. 174 ◽  
Author(s):  
Osveh Esmaeelinezhad ◽  
Kuppusamy Singaravelloo ◽  
Ali Boerhannoeddin

This study employs structural equation modelling technique to examine the direct effect of perceived external corporate social responsibility and perceived internal corporate social responsibility on employee engagement as well as the mediated link through organizational identification. Social exchange theory and social identity theory used to explain the relationships between the variables in this study. It was conducted among 1080 employees of four selected organizations in Iran which are among the main pioneers in performing corporate social activities. The test of research model shows the positive effect of perceived external corporate social responsibility and perceived internal corporate social responsibility on employee engagement. In addition, it confirms that organizational identification has a mediating role in above relationships. The results have also contributed to a better understanding of corporate social responsibility in Iran as a developing country in which corporate social responsibility has recently gained attention and thus there is still a lack of understanding about it. The findings would be useful for managers to have a better insight towards applying corporate social responsibility in line with increasing employees’ identification and engagement. 


2019 ◽  
Vol 1 (26) ◽  
pp. 22-30
Author(s):  
Hung Thanh Nguyen ◽  
Dung My Ho ◽  
Phuc Thi Hong Nguyen

This research aims at identifying impact of CSR on dimensions of job satisfaction and organizational commitment. The sample size of 422 was collected from staffs and managers. The analytical method of Structural Equation Modeling,(SEM) was used in this research. The results of the study showed that four factors of CSR including employee, customer, environment, and legality positively influenced job satisfaction and organizational commitment.


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