The impact of corporate social responsibility (CSR) and customer trust on the restoration of loyalty after service failure and recovery

Abstract

Purpose

This study seeks to examine perceived corporate social responsibility (CSR) with a focus on ethical and legal questions, related to the constructs such as recovery satisfaction, customer trust, and loyalty after a service failure.

Design/methodology/approach

An empirical test was conducted on this relationship in the context of service failure and recovery. A structural equation model was employed to test the hypotheses.

Findings

Results indicate that perceived CSR has a significant impact on customer trust and loyalty and that customer trust serves as a key mediating variable in service recovery.

Research limitations/implications

This study provides a theoretical implication for the relationship between perceived CSR and the relationship constructs such as service recovery satisfaction, customer trust, and loyalty.

Practical implications

The results suggest that managers may need to be aware of perceived CSR as a key variable in restoring customer loyalty. The results further suggest that perceived CSR has a direct and indirect positive effect on loyalty; perceived CSR has a direct impact on loyalty, but it also has an indirect influence on loyalty through customer trust.

Originality/value

In an attempt to deepen the understanding of how customer perceptions of firm CSR are connected with other customer-related outcomes during service recovery, the present research proposes a comprehensive model which encompasses CSR and other key relationship constructs after a service failure and recovery.

Citation

Choi, B. and La, S. (2013), "The impact of corporate social responsibility (CSR) and customer trust on the restoration of loyalty after service failure and recovery", Journal of Services Marketing, Vol. 27 No. 3, pp. 223-233. https://doi.org/10.1108/08876041311330717