- Apply for Authority
- P-ISSN1738-3110
- E-ISSN2093-7717
- SCOPUS
ISSN : 1738-3110
Affecting Customer Loyalty by Improving Corporate Image and Customer Value through Corporate Social Responsibility Activities
Hwang, Hee-Joong
Song, In-Am
- Downloaded
- Viewed
Abstract
Purpose - Recently, a variety of activities for practicing the continuing management of domestic and foreign companies have been conducted and further, corporate social responsibility for maximizing the value of stakeholders such as customers, cooperative companies, and the local community emerges as a key business strategy. Accordingly, the issue of whether corporate image and customer value through corporate social responsibility activities positively affect customer loyalty and customer attitude is investigated in this study. Research design, data, and methodology - Corporate social responsibility activities are classified into legal and moral activities, environmental protection activities, economic activities, and community service activities; further, customer values are classified into emotional value, functional value, and social value, to determine the parameters. In addition, the strategic approach direction of social responsibility activities is justified as a strategy for effectively achieving the expected results that corporations seek by proving the effect of these parameters on customer loyalty. Results - The study results can be summarized as follows. First, legal and moral activities, environmental protection activities, economic activities, and community service activities are four types of CSR activities affecting meaningful improvements in corporate image. Second, legal and moral activities affect factors that meaningfully improve customer value, including factors such as emotional value, functional value, and social value, while environmental protection activities affect improvements in the factor of social value only. Third, corporate image affects meaningful improvements in customer value. Fourth, corporate image affects improvements in customer loyalty positively. Fifth, the three factors of customer value, that is, emotional value, functional value, and social value affect meaningful improvements in customer loyalty. Sixth, customer value acts to partly mediate the effect of companies' CSR activities on customer loyalty. As shown in the study results above, it was verified that CSR activities affect meaningful improvements in corporate image and customer value and, in turn, corporate image and customer value affect meaningful improvements in customer loyalty. In addition, it was verified that customer value acts to partly mediate the effects of companies' CSR activities on customer value. Conclusions - Accordingly, the results of this study suggests as follows. First, it was clearly verified that customers' recognition of CSR efforts has a positive effect on corporate image, customer value, and loyalty because CSR activities improve the relationships between customers and corporations by providing customers with value. Second, it was suggested that corporations implement social contribution activities strategically according to the theory that the higher the rate of CSR activities, the better the corporate image and repurchase intention would be, which is a theory verified through practical analysis. Corporations should do this by constructing positive relationships from the value perceived by customers. To summarize the study results in a brief manner, it is suggested by the results of the study that a corporation should conduct CSR more actively to make customers recognize the positive image of their products and services.
- keywords
- Corporate Social Responsibility, Corporate Image, Customer Value, Customer Loyalty
Reference
Babin, B. J., Darden, W. R., & Griffin, M.(1994). Work and fun:Measuring hedonic and utilitarian shopping value. Journal of Consumer Research, 20(2), 644-656.
Baron, R. M., & Kenny, D. A.(1986). The Moderate-mediator variable distriction in social psychological research: conceptual, strategic, and statistical considerations. Journal of Personality and Social Psychology, 51(1), 1173-1182.
Bhattacharya, C, B., Korschun, D., & Sankar, S.(2009). Strengthening Stakeholder-Company Relationship Through Mutually Beneficial Corporate Social Responsibility Initiatives. Journal of Business Ethics, 85(1), 257-272.
Bitner, M. J.(1990). Evaluating service encounters: The effects of physical surroundings and employee respondence. Journal of Marketing, 54(2), 69-82.
Bowen, J. T., & Chen, S. L.(2001). The relationship between customer loyalty and customer satisfaction. International Journal of Contemporary Hospitality Management, 13(5), 213-227.
Brown, T. J., & Dacin, P. A.(1997). The company and the product:corporate Associations and Consumer Product Responses. Journal of Marketing, 61(1), 68-84.
Carroll, A. B.(1979). A three dimensional conceptual model of corporate social performance. Academy of Management Review, 4(1), 497-505.
Caudron, S. (1997, February). Forget your image: It's your reputation that matters. Industry Week, 13-16.
Chang, T. Z., & Albert R. W.(1994). Price, Product Information, and Purchase Intention: An Empirical Study. Journal of the Academy of Marketing Science, 22(1), 16-27.
Cho, Yoon-sung (2009). Effect of corporate social responsibility(CSR) on the quality of customer relationship : comparative perspectives between promotion focus customers and prevention focus customers. Seoul, Korea: thesis for doctorate in Graduate School of Hanyang University.
Cronin, J. J., Brady, M. K., & Hult, G. T. M. (2000). Assessing the Effect of Quality, Value, and Customer Satisfaction on Consumer Behavioral Intentions in Service Environments. Journal of Retailing, 76(2), 193-218.
Dahlsrud, A.(2008). How Corporate Social Responsibility is Defined : an Analysis of 37 Definitions. Corporate Social Responsibility and Environmental Management, 15(1), 1-13.
Dick, A., & Basu, S. K.(1994). Customer loyalty: toward an intergrated conceptual Framework. Journal of the Academy of Marketing Science, 22(1), 99-113.
Dowling, G.(2002). Creating Corporate Reputation, Identify, Image and Performance. New York: Oxford University Press Inc.
Garbarino, E., & Johnson, M. S.(1999). The different roles of satisfaction, trust, and commitment in customer relationships. Journal of Marketing, 63(2), 70-87.
Hansen, G.(2004). Corporate Social Responsibility: An Economic and Financial Framework. The Geneva Papers on Risk and Insurance Issues and Practice, 30(3), 387-409.
Holbrook, M. B. (1994). The nature of customer value. In R.T. Rust & R.L. Oliver (Eds), Service Quality: New Directions in Theory and Practice (pp.1-19), Thousand Oaks, CA :Sage Publications.
Hwang, Byeong-Il (2004). The Effects of Perceived Service Quality on Customer Satisfaction, Brand toward Attitude and Customer Loyalty. Korean Business Review, 17(2), 131-159.
Hwang, Hee-Joong (2013). A Study on the Global Management Strategy for Product Quality Assurance Based on Brand Power and Country of Origin Effect. Journal of Distribution Science, 11(2), 23-33.
Jeong, Yoon-Say (2002). Study of the effects of customer satisfaction, switching costs, and corporate image on the customer loyalty to the internet shopping mall. Seoul, Korea : thesis for doctorate in Graduate School of Dankook University.
Jones, T. O., & Sasser, W. E.(1995). Why satisfied customer defect. Harvard Business Review, 73(4), 88-99.
Julian, G.(1999). The impact of employee performance cues on guest loyalty, perceived value and service quality. The service Industries Journal, 19(3), 97-118.
Kang, Byoung-Chan (2012). Luxury Tourism Recognition and Perceived Value, and Their Effects on Brand Attitude and Behavioral Intention. Seoul, Korea: thesis for doctorate in Graduate School of Kyung Hee University.
Kim, Hae-Ryong, Kim, Na-Min, Yoo, Kwang-Hee, & Lee, Moon-Kyu (2005). Developing a Scale for Evaluating Corporate Social Responsibility. Korea Marketing Review, 20(2), 27-52.
Kim, Jun-Ho (2005). Study on the changed Expectation of Customers of the Service Quality. Seoul, Korea: thesis for doctorate in Graduate School of Kyonggi University.
Kim, Jung-Su, & Kim, Young Gyul (2002). The Effect of Customer`s Perceived Value of Internet Banking an Customer Loyalty. Asia Pacific Journal of Information System, 8(4), 215-235.
Kim, Soon-Woo (2009). The Effect of Title Sponsorship of Tennis Championship on a brand and an Image of Enterprises. Seoul, Korea: thesis for doctorate in Graduate School of Kookmin University.
Kim, Yi-Tae (2008). Effects of the Corporate Image on Customer Value and Loyalty. The Korea Contents Society, 8(1), 76-77.
Kotler, P., & Armstrong, G.(1998). Principles of Marketing. New York, NY: Prentice Hall.
Kotler, P.(1994). Marketing Management (8th Edition). New York, NY: Prentice Hall.
Lee, Hak-Sik, Jang, Kyung-Ran, & Lee, Young-Ki (1999). The Relationship between Market Orientation and Business Performance, and Mediators in the Hotel Industry. Korea Business Review, 61(1), 47-72.
Lee, Han-Joon, & Park, Jong-Chul (2009). The Effects of Corporate Social Responsibility Activities on Product and Corporate Evaluation : The Mediating Role of Trust. Korea Marketing Review, 24(1), 231-250.
Loudon, D. L., & Bitta, A. J.(1987). Consumer behavior. New York, NY: MacGraw-Hill.
Maignan, I., & Ferrell, O. C.(2004). Corporate social responsibility and marketing : an integrative framework. Journal of the Academy of Marketing science, 32(1), 3-19.
Marin, L., Ruiz, S., & Rubio., A.(2009). The Role of Identity Salience in the Effects of Corporate Social Responsibility on Consumer Behavior. Journal of Business ethics, 84(1), 65-78.
Martensen, A., & Gronholdt, L.(2003). Improving Library Users'Perceived Quality, Satisfaction and Loyalty : An Integrated Measurement and Management System. Journal of Academic Librarianship, 29(3), 140-147.
Martensen, A., Setnholdt, G., & Ears, K. K.(2003). The Drivers of Customer Satisfaction and Loyalty: Cross-industry Findings from Denmark. Total Quality Management, 11(4), 544-554.
Morgan, R. M., & Hunt, S. D.(1994). The Commitment-Trust Theory of Relationship Marketing. Journal of Marketing, 58(1), 20-38.
Nguyen, N., & LeBlanc, G.(1998). The mediating role of corporate image on customers’ retention decisions: An investigation in financial service. International Journal of Bank Marketing, 16(2), 52-65.
Oliver, R. L.(1999). Whence consumer loyalty?. Journal of Marketing, 63(Special Issue), 33-44.
Oliver, S. L.(1997). Exploring Lay Perspectives on Questions of Effectiveness. In A. Maynard and I. Chalmers (eds), Non-random Reflections on Health Services Research (pp. 271-272), London: BMJ Publishing Group.
Parasuraman, A., & Grewal, D.(2000). Serving customers and consumers effectively in the twenty-first century: a conceptual framework and overview. Journal of the Academy of Marketing Science, 28(1), 9-16.
Park, Rye-Gyu (2010). Impact of Corporate Characteristics and Corporate Social Responsibility on Brand Attitude and Loyalty. Seoul, Korea : thesis for doctorate in Graduate School of Chosun University.
Peterson, D. K.(2004). The Relationship between Perceptions of Corporate Citizenship and Organizational Commitment, Business and Society, 43(3), 296-379.
Petkoski, D., & Twose, N.(2003). Public Policy for Corporate Social Responsibility. WBI Series on Corporate Responsibility, Accountability, and Sustainable Competitiveness.
Rusbult, C. E., & Farrell, D.(1983). A longitudinal test of the investment model : The impact on job satisfaction, job commitment, and turnover of variations in rewards, costs, alternatives, and investments. Journal of Applied Psychology, 68(1), 429-438.
Sen, S., & Bhattacharya, C. B.(2001). Does Doing Good Always Lead to Doing Better? Consumer Reactions to Corporate Social Responsibility. Journal of Marketing Research, 38(1), 225-243.
Seo, Hyun-Sook (2010). Analysis of casuality relation between causes & effects of multi-dimensional convenience. Seoul, Korea : thesis for doctorate in Graduate School of Kyung Hee University.
Sethi, S. P.(1975). Dimensions of Corporate Social Responsibility. California Management Review, 15(2), 17-24.
Sheth, J. N., Newman, B., & Gross, B. L.(1991). Why We Buy What We Buy: A Theory of Consumption Values. Journal of Business Research, 22(2), 159-170.
Song, In-Am, & Yang, Seung-mi (2013). Research on customer loyalty determinants in the Korean mobile communications market - the moderating effect of SNS use. Information and Society, 26, 74-101.
Spinkle, G. B., & Maines, L. A.(2010). The benefits and costs of corporate social responsibility. Business Horizon, 53(1), 445-453.
Sweeney, J. C., & Soutar, G. N.(2001). Consumer perceived value: the development of a multiple item scale. Journal of retailing, 77(2), 203-220.
Taylor, S. A., & Baker, T. L.(1994). An Assessment of the Relationship between Service Quality and Customer Satisfaction in the Formation of Consumers’ Purchase Intentions. Journal of Retailing, 70(2), 163-178.
Thaler, R. H.(2012). Corporate Citizens do well by doing good to others, The korea Herald. 2012. 1. 26.
Yoo, Tae-Yong (1994). Exploratory Study on Factor Structure of Trait Adjectives Describing Corporate Image. The Korean Journal of Industrial and Organizational Psychology, 8(1), 29-54.
Yoon, Kak, & Suh, Sang-Hee (2003). The Influence of Corporate Advertising and Social Responsibility Activities on Corporate Image and Brand Attitudes. Adveryising Research. 61(1), 47-72.
Zeithaml, V. A.(1988). Consumer perceptions of price, quality, and value : A means-end model and synthesis of evidence. Journal of Marketing, 52(3), 2-21.
- Downloaded
- Viewed
- 0KCI Citations
- 0WOS Citations