The effect of corporate social responsibility on customer loyalty in Vietnam: the role of corporate image and customers satisfaction - A study in Ho Chi Minh city

Abstract

Businesses today aspire to embrace the social responsibility idea, as CSR recently has received the attention of the whole society. Customer loyalty, brand image, and customer happiness are some of the things that organizations are most interested in and strive to achieve while implementing CSR. Much study has already been conducted to understand how to best employ CSR to optimize these characteristics. However, translating CSR thoughts into real activities in businesses is a difficult task. Because of the lack of a theoretical foundation based on market factors, the implementation of CSR by firms in Vietnam is still notably ineffective. In order to give a solution to this problem and add to the research database of future research, this study investigates the link between social responsibility performance of business firms and its customers' loyalty, utilizing customer satisfaction and corporate image as mediators. In particular, social responsibility will be assessed in the three areas of economic responsibility, society responsibility, and environmental responsibility. A total of 257 samples were gathered utilizing online surveys and the quantitative approach. This data will next be examined using the SPSS program, the SEM process, and the AMOS model. This study investigates how CSR affects consumer loyalty in Ho Chi Minh City. The impact of two mediators on this relationship—customer satisfaction and corporate image— is then taken into account. The results demonstrate that CSR has a positive impact on consumer loyalty, with the social aspect having the highest effect. It is proven that both of the intermediary factors significantly affect the link between CSR and customer loyalty, with the customer satisfaction component having a greater weight. This research is noteworthy in terms of adding to the theoretical framework for future research on this topic in Vietnam. The outcomes of the study include recommendations for the basis of practice as well as for the interests of business, government, and customers