The importance of CSR in forming customer–company identification and long-term loyalty

Abstract

Purpose

Promoting customer–company identification (CCI) has become a crucial relationship marketing strategy for service firms. The purpose of this study is to examine how customers’ perceptions of service quality and corporate social responsibility (CSR) affect CCI over time. More importantly, a comparative analysis is conducted to compare the long-term effectiveness of service quality versus CSR in forming CCI.

Design/methodology/approach

A conceptual framework is developed and then empirically examined using latent growth curve modeling. The study data were collected from restaurant customers in Taiwan in four waves of 213 repeated measures.

Findings

The results of this study show that customers’ perceptions of both service quality and CSR affect CCI. Particularly, the results of this study indicate that compared with service quality, customers’ perceived CSR has a stronger effect in the promotion of CCI over time.

Practical implications

This study offers a new insight for service marketing practitioners who are planning and implementing strategies for enhancing CCI. The findings suggest that relationship investments are more effective over the long term when service firms shift their investment priority over time from achieving high service quality to increasing consumers’ belief in the firm’s commitment to CSR.

Originality/value

Though previous research has explored the various drivers of CCI, longitudinal examinations are surprisingly scarce in this context. Using latent growth curve modeling, this study examines how CCI antecedents influence changes in CCI over time. More importantly, this study reveals that CSR has a stronger long-term impact on CCI than service quality.

Citation

Huang, M.-H., Cheng, Z.-H. and Chen, I.-C. (2017), "The importance of CSR in forming customer–company identification and long-term loyalty", Journal of Services Marketing, Vol. 31 No. 1, pp. 63-72. https://doi.org/10.1108/JSM-01-2016-0046