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Article

CSR Influence on Brand Loyalty in Banking: The Role of Brand Credibility and Brand Identification

by
Mobin Fatma
* and
Imran Khan
Department of Marketing, College of Business Administration, Prince Sultan University, Riyadh 11586, Saudi Arabia
*
Author to whom correspondence should be addressed.
Sustainability 2023, 15(1), 802; https://doi.org/10.3390/su15010802
Submission received: 8 November 2022 / Revised: 27 December 2022 / Accepted: 30 December 2022 / Published: 2 January 2023
(This article belongs to the Special Issue Social Marketing Approaches for Sustainable Development Goal)
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Abstract

:
The present research study examines the influence of perceived corporate social responsibility (CSR) on consumer brand loyalty in the banking industry. The present research also examines the indirect relationship between CSR and brand loyalty via brand credibility and brand identification. The causal relationship is tested among perceived CSR, brand identification, brand credibility, and brand loyalty. Data were collected through a survey of banking customers (n = 315) in India. Structural equation modeling techniques (SEM) were employed further to analyze the data with AMOS version 24.0. This study expanded the traditional view of CSR effects on consumers and tried to fill the gap that exists in the literature by analyzing the effect of perceived CSR, brand credibility, and brand identification on consumer brand loyalty in banking services. The findings drawn from the study have significant implications for banking companies.

1. Introduction

CSR is seen as a critical driver for the advancement of developing countries, as its aids in the eradication of poverty, encourages training and education, and advances equity and sustainable improvement [1], although the topic is controversial and has been contested in the past few years. The significance of CSR is widely discussed in the literature, ranging from increased stakeholder support [2], increased purchase intentions, reduced financial risk for the firms [3], and increased financial value [4]. This type of business achievement comes from adopting the CSR principles as a core business value [5] and using the same for branding purposes [6]. As a result, banks are implementing socially responsible strategies and tactics in their business [7,8]. Many authors (i.e., [9,10] have started to seek business values in socially responsible activities and identify the notable CSR activities that can benefit society and customers. Although researchers have investigated CSR activities’ influence on firms’ marketing activities, some research gap still exists in the banking business [10]. The concept of CSR is popular in various industry sectors and is especially very sensitive to the business due to the complex nature of the services that this business provides. Furthermore, it is difficult to evaluate how consumers perceive CSR activities in the banking business. In a way to affect the consumer perception of the bank services, the CSR activities must be very sensitive and important because they have a direct relation with the quality and image of the services [11].
This study seeks to understand the key antecedents of consumer brand loyalty in the Indian banking sector by examining the possible indicators of CSR, namely economic, environmental, and ethical indicators. Moreover, no prior studies have taken the role of brand credibility and brand identification as a mediating factor in the relationship between CSR and brand loyalty. We propose to test the study model considering the effect of CSR on brand loyalty via the mediating role of brand identification and brand credibility. Accordingly, this study makes three key contributions. First, most of the literature on CSR has focused on understanding and measuring CSR on the legal and ethical aspects only, and hardly considers the role of the environmental dimension, which could also be influential on consumers’ intentions [12]. This has been evident in the various industry sectors in which environmentally friendly businesses are more enduring to stakeholders, including consumers [13]. Although CSR literature in the banking sector mainly focuses on the economic, legal, ethical, and social aspects of CSR while not paying attention to the environmental aspect [14,15], CSR has become extremely popular and important in various industries, including banking [10,16]. Second, this study has taken the role of two important mediators—brand credibility and brand identification—to explain its facilitating influence on brand loyalty. Understanding the influence of brand identification and brand credibility in the formation of brand loyalty as a consequence of CSR activities will have significance for the marketer, as it provides suggestions in developing the CSR policy and activities, in addition to knowing whether brand identification and brand credibility get stronger or weaker as a result of CSR activities. Third, most of the studies were conducted in Western countries in various sectors. Thus, very limited attention was given to examining the CSR activities in Asian countries such as India. According to Fatma et al., [13], the functionality and sustainability of the banking sector can be well understood by the various aspect of CSR, and these can be executed by using the various tools given by CSR. It is being suggested that adopting the CSR initiatives in the banking sector will enhance its attractiveness and will also result in a competitive advantage [17] As a result, these CSR activities were also found to result in increased value for the company [18].
This study aims to understand the relationship between consumer perception of CSR in the banking business. Specifically, this study seeks to know the following points: (1) Does perceived CSR have any influence on consumer brand loyalty? (2) What are the activities contributing to consumers’ perceived CSR? (3) What is the mediating influence of brand credibility and brand identification in influencing the association between CSR and brand loyalty? Although the relationship between CSR and brand loyalty has been studied by many researchers [19,20], the systematic consideration of the influence of perceived CSR on brand loyalty via brand credibility and brand identification is very low [10], particularly in the domain of banking services [21,22].
The present study is organized as follows. The following section presents the review of the literature and hypothesis development, which is followed by the methodology section, which elaborates on the method used and hypothesis testing results and analysis. The last section presents the discussion and presents the theoretical and managerial implications of the study, followed by limitations and future research directions.

2. Literature Review and Hypothesis Development

2.1. Consumer Perception of CSR Activities

The way that consumers perceive CSR can influence their behavior in several ways, such as positive word of mouth, purchase intention, loyalty, etc. [23,24,25]. In the literature, perceived CSR and CSR activities are often used interchangeably. The former refers to the consumer’s actual perception of the company’s socially responsible activities, while the latter refers to the company’s actual activities such as voluntary contribution, charity giving, etc. [26]. Prior literature on consumer research has exhibited that CSR includes different actions showing its commitment to social obligations, and specifically places stress on consumer perception of such acts [27]. This perception is referred to as perceived CSR, which is defined as consumer evaluations of how well a company meets its stakeholder expectations and societal obligations by involving a broad range of voluntary activities [28]. Accordingly, we argue that if a company engages in CSR and promotes its effort, it is more likely to be perceived as socially responsible by consumers [29,30]. Mohr et al. [31] stated that consumer evaluation of companies, products, and purchase intention relies on CSR information among the stakeholders.
In the present competitive business scenario, the significance of CSR cannot be overstated. Consumers expect the company to be socially and ethically responsible to society and the environment. Meeting society’s social and ethical needs has become an expectation and a tactic for differentiation to achieve organizational legitimacy. With the expansion of corporate social impact, those companies who fulfill their responsibilities towards society and stakeholders achieve a long-term competitive advantage [32]. Consumers reward the companies who are actively engaged in CSR activities and promote them well compared to those that do not [33]. Brands such as McDonald’s and Starbucks are good examples of companies that are actively engaged in CSR activities. Starbucks provides a support service by donating the compost made from the leftover part of ground coffee to farmers [34]. McDonald’s is donating a part of the sale of some of its products to the NGOs that facilitate youth development [35]. As CSR becomes imperative for both the academic and corporate agendas, consumers are keen to pay close attention to companies’ involvement in CSR. The company image evolving from CSR practices can build a strong relationship between the company and its customers [36]. Companies’ CSR performance requires the active participation of both the internal and external stakeholders to anticipate and take competitive advantage of the dynamic social conditions. CSR has attracted the attention of both scholars and practitioners in recent times. CSR may be considered a management system and strategy for gaining a competitive advantage [37], making social welfare a part of their business [38].

2.2. Research Hypothesis

Shared common goals between the company and society CSR have motivated business firms to indulge in CSR practices voluntarily. Three groups of stakeholders have played a key role in doing incorporating CSR into the business model, i.e., customers [39], companies [40], and communities [41]. When consumers are involved in socially responsible activities, they are more likely to express their sincere responsibility toward sustainable consumption [41]. The concept of CSR is closely aligned with the concept of ethical values. It is based on the principle that companies should voluntarily contribute to the social welfare programs where they operate their business. This notion is based on the premise that business success and its existence is contingent on society, so they should think of society first and give them back through socially good ways. In this way, using the context of the banking services, this study investigates CSR’s effect on brand loyalty in the Indian banking sector. Although the previous studies on CSR investigated its outcomes, the authors call for a more systematic investigation into what drives firms to pursue CSR activity to have a positive influence on consumer behavior. The hypothesized framework is shown in Figure 1.

2.2.1. CSR and Brand Identification

Brand identification refers to the degree to which individuals define themselves when they find a similarity between the brand’s values and traits [42]. Importantly, identification with the brand can also occur in the absence of a formal membership with the brand. If consumers share some relationship with the product or services, they are more likely to identify with the brand as a sponsor [10]. Previous research on self-concept suggests that individuals are more likely to identify with a brand with stronger CSR to enhance their self-esteem and demonstrate a more social and ethical image [43]. Prior studies on consumer identification have suggested that socially responsible activities are key elements of a company’s identity and a way to associate consumers with the brand [41]. In their study, Sen and Bhattacharya [44] stated that consumer identification with the company results in positive consumer responses toward CSR activities. Lichtenstein et al. [27], p. 17) suggested that “a way that CSR initiatives create benefits for companies appears to be by increasing consumers’ identification with the corporation—[and] support for the company”. Thus, the following hypothesis is proposed:
H1. 
Consumer perception of CSR has a positive influence on brand identification.

2.2.2. CSR and Brand Credibility

Brand credibility refers to the credibility of a brand, and it is the extent to which the consumer believes in the expertise and trustworthiness of the brand [45]. A brand should be capable enough to deliver what it promises to its customers to be perceived as credible. For the implementation of effective CSR policies, it is crucial to build credibility in CSR activities, because CSR’s significant role in building a brand relies on such activities’ credibility [46]. CSR activities can convince the customer that a company stands for higher quality in products/services because it signals greater management competency [47]. Previous studies identified the various benefits of CSR activities for enhanced credibility by consumers [48]. Osterhus [49] suggested that company actions toward CSR activities and brand credibility significantly influence positive outcomes. If consumers trust the brand’s social actions, they are more likely to reward the brand for its CSR activities. Likewise, doing well appropriately and credibly can make the consumers feel an attachment to the brand as it has some desirable social values aligned with the way they are [27,50]. Accordingly, the following hypothesis is proposed:
H2. 
Consumer perception of CSR has a positive influence on brand credibility.

2.2.3. Brand Credibility and Brand Loyalty

Brand credibility is a crucial indicator impacting market share and brand image [51]. Brand signaling theory also signifies the relevance of brand credibility in brand equity [52]. Brand researchers are consistently in search of factors that can significantly influence brand credibility. The authors of [53,54] insisted on the importance of brand credibility in consumer patronage intention and the decision-making process. Brand credibility also helps reduce the risk for customers, as it can entrust brand specifications and induce motivations among the customers regarding a product’s worth. This can help facilitate the final decision to use the product [55]. With the personal history of brand experience, brand credibility is the “indicator” of brand loyalty. As such, those brands that are regarded as credible can easily generate loyalty among customers if they confirm their promises towards quality and trust. Furthermore, perceived quality and trustworthiness induce credibility towards the brand and lead to a stronger relationship with the customers, i.e., brand loyalty. Thus, we state the following hypothesis:
H3. 
Brand credibility has a positive influence on brand loyalty.

2.2.4. Brand Identification and Brand Loyalty

Research has suggested that when consumers identify with the brand, they tend to buy and recommend the brand more [56]. Martínez et al. [57] also suggested that brand identification is a key predictor of hotel brand loyalty. Brands are a meaningful way for consumers to identify with [19]. Based on the premise of social identity theory, consumers with strong brand identification tend to indulge more in pro-brand activities such as promoting the brand, recommending it to others, supporting it, etc. [37]. Brand identification provides a favorable context in consumers’ minds to respond to brand performance against the prior expectation. A successfully projected brand as connected to the CSR activities is perceived as more favorable by the consumers [10]; thus, the consumers are more susceptible to building a long-term relationship with the brand. Those consumers who form their identity by associating themselves with the brand [13] and have a positive feeling about the brand are loyal to the brand. Therefore, a customer with strong brand identification is more likely to stay with the focal brand. Thus, the following hypothesis is proposed:
H4. 
Brand identification has a positive influence on brand loyalty.

2.2.5. CSR and Brand Loyalty

CSR plays a key role in evaluating its products and building a positive perception of such companies’ consumer minds. Several studies have investigated CSR’s role in influencing brand loyalty through the various mechanism behind this relationship [19,58,59]. As per the belief of social exchange theory, when companies are involved in society’s welfare, such as donations to charity programs, environment protection, obeying the law, ethical treatment of labor, etc., it rewards them in attracting and retaining the consumers. Based on reciprocity norms, the consumer, as a member of society, is a recipient of such benefits. Many respond positively in the form of positive word of mouth, showing loyal behavior towards such companies. Based on previous studies, it can be said that socially responsible activities are relevant and meaningful elements of a brand image that can attract customers [60]. Marin et al. [61] stated in their studies that perceived CSR strengthens brand loyalty because it reflects the principles and values that demonstrate respect and care for customers and society, encouraging brand loyalty. Communicating the CSR activities well to the consumers helps them in establishing a strong identification with the company or brand [13], which leads the consumer to develop loyalty toward the firm [62]. Moreover, the consumer perception of CSR activities influences the company’s credibility (Fatma and Rahman, 2015), which is one of the influencing factors affecting brand loyalty. It is found in previous research that consumers find the identity of the brand more attractive and credible, and would like to build a long-term relationship with the brand, if the company indulges in socially responsible activities [57]. Taking into account the argument presented above, we propose the following hypothesis:
H5. 
Consumer perception of CSR activities has a positive direct influence on brand loyalty.
H6. 
Consumer perception of CSR has a positive indirect influence on brand loyalty via (a) brand credibility (b) brand identification.

3. Methodology

3.1. Data Collection

For the current study, data were collected through a personal survey. Respondents included the customers of three major retail banks in India. The criteria followed to select the respondents included those who were 18 years or above and also had an account with the banks from the last year. The selected banking companies’ major CSR activities that were included (e.g., cleanliness drive under Swach Bharat Abhiyan, providing support to flood relief, skill development programs, educational infrastructure development, rural development, etc.) represent their commitment towards the diverse stakeholder group including customers [63]. The study sample companies were scrutinized to ensure their active engagement in CSR activities. A nonprobability sampling procedure was employed to collect the data. Data were collected by visiting the different branches of the banks in the Delhi NCR area. A total of 315 questionnaires were completed from the bank customers. The respondents were proportionally distributed amongst the age, gender, and income group. Our preliminary analysis reveals that 64% of the respondents were male and 36% were female. In terms of the age of respondents, it is spread amongst the different age groups, with 31% of respondents aged between 18–36 years, 44% between 37–53, 20% between 54–69 years, and 4% who were 70 years or older. In terms of the income distribution, the median income of the respondents was INR 31000-55,000 as shown in Table 1.

3.2. Measures

All the measurement items were based on seven-point Likert scales ranging from “strongly disagree” to “strongly agree”. Consumer perception of CSR was measured as a second-order reflective construct consisting of three dimensions: economic, environmental, and ethical. The scale items used to measure these dimensions were taken from previous CSR studies [64,65,66,67]. Brand credibility represents the belief that a brand is comprised of trustworthiness and expertise and can fulfill its promises. Brand credibility was measured with the five-item scales taken from the study of [68]. The four-item scale was taken from the study of Stokburger-Sauer et al. [69] to measure brand identification. For brand loyalty, both attitudinal and behavioral perspective was used to measure this. The four-item scale was used from the study of Zeithmal et al. [70] to measure brand loyalty.

3.3. Measurement Model Analysis

Confirmatory factor analysis (CFA) was used to measure the constructs’ reliability and validity through AMOS 24.0. The measurement model includes perceived CSR, brand credibility, brand identification, and brand loyalty. Based on previous conceptualization, perceived CSR was specified as a second-order construct consisting of three dimensions: economic, environmental, and ethical. The measurement model shows the acceptable model fit [71], providing the following indices: NFI = 0.923; CFI = 0.956; GFI = 0.921, RMSEA = 0.62. The construct reliability and validity were further assessed by calculating the average variance extracted (AVE) and construct reliability [72]. All the constructs shown in Table 2 exceed the recommended level of 0.70 for composite reliability and 0.5 for AVE, suggesting fair grounds for reliability and convergent validity [71,73]. Moreover, AVE’s square root for all the constructs was higher than the squared correlation coefficients between any pair of constructs confirming the discriminant validity, as shown in Table 3 [72]. Since the data for the independent and dependent variables were collected from the same respondents, the risk of common method bias might exist in the present study data. Harman’s single-factor test was applied using the principal component analysis to assess the common method bias, which explained only 22 percent of the variance (supporting the premise of the absence of common method bias). Furthermore, the average of all the latent factors was 61.23, which further confirms the absence of common method bias.

3.4. Hypothesis Test and SEM Results

A structural model was analyzed using AMOS 24.0 to test the hypothesized model. The collected data fitted the proposed model well, as can been in model fit indices (χ2 = 439.409, df = 200, χ2/df = 2.197; GFI = 0.948; CFI = 0.921; RMSEA = 0.06). The path coefficients in the present model are shown in Table 3. As can be seen in Table 3, consumer perception of CSR has a significant positive influence on brand credibility (β = 0.52, p < 0.05) and brand identification (β = 0.25, p < 0.05), respectively, supporting H1 and H2. H3 states that CSR’s consumer perception has a significant and direct influence on brand loyalty and was found not significant. Thus, H3 is not supported. Nonetheless, the indirect relationship between consumer perception of CSR and brand loyalty was significant via brand credibility and brand identification. Furthermore, brand credibility (β = 0.20, p < 0.05) and brand identification (β = 0.13, p < 0.05) were found to have a significant positive influence on brand loyalty, and therefore support H4 and H5. Overall, the structural model explained the variance well for all the endogenous variables (R2 = (brand credibility) 29%, R2 = (brand identification) 45%, R2 = (brand loyalty) 35)%. The summary of the hypothesis testing results is shown in Table 4.

3.5. Mediation Analysis

We tested the mediation (H6a, H6b) through Hayes multiple mediator analysis [74], Model 4). The present study examines the mediating effect of two variables—brand credibility and brand identification—on brand loyalty. The findings reveal no significant difference in the indirect effect of the impact of perceived CSR on brand loyalty through brand credibility (β = 0.0081), not supporting the H6a. The present research did not find a significant indirect effect of the impact of perceived CSR on brand loyalty through brand identification (β = 0.0070, not supporting the H6b. The direct effect of perceived CSR on brand loyalty in the presence of brand credibility and brand identification was also not found significant (β = 0.0297). Thus, we can say that brand credibility and brand identification do not mediate the relationship between perceived CSR and brand loyalty. The results of the meditation analysis are shown in Table 5. The direct effect between perceived CSR and brand credibility and brand identification was significant.

4. Discussion

The present study assesses consumer-perceived CSR’s role in building consumer identification with the brand, brand credibility, and brand loyalty. The causal relationship is tested among perceived CSR, brand identification, brand credibility, and brand loyalty. This study found that CSR activities positively influence brand credibility because consumers perceive CSR messages to signal the authenticity of the brand. Since brand credibility promotes the firm, consumers respond more keenly to the brand, leading to stronger brand loyalty. Further, brand credibility positively influences brand loyalty. Consequently, if the brand is perceived as credible, the consumer will more likely rebuy it and commit to it. Therefore, companies should try to enhance the brand’s credibility by focusing on all the factors contributing to it (e.g., quality, price, availability, social responsibility, etc.). The credibility of the brand is significant for the customers to develop loyalty to the brand. The findings imply that researchers and companies should pay attention to understanding the cognitive mechanism of consumer formation of the CSR image, while most of the prior research focuses on the influence of affective outcomes [75]. This study suggests important insights by empirically showing that brand credibility and brand identification resulting from consumer-perceived CSR contribute to the long-term relationship with customers. Consumers are more willing to relate themselves with the brand associated with CSR activities relating to their self-esteem and self-enhancement. CSR activities are an effective instrument to enhance consumer brand identification.

4.1. Theoretical Contribution

One of the study’s significant contributions is to identify the key role of brand identification and brand credibility in the relationship between CSR and brand loyalty. This conceptualization has been empirically supported in the current study. The findings show that a consumer with strong brand identification towards socially responsible activities has enhanced loyalty towards the brand. The findings suggest that CSR activities will create awareness about the brand among its stakeholders and will contribute to its credibility [76], enhancing brand loyalty. This study adds empirical evidence in observing CSR’s positive influence on consumer identification with the brand [62] in banking services. This suggests that social benefits driven by a brand can influence brand identification. Moreover, the results suggest that companies can establish brand loyalty through consumer brand identification. Likewise, if a consumer finds an overlapping between the brand and their values, they are more likely to identify with the brand. Subsequently, it may result in a long-term relationship with the brand.

4.2. Managerial Implications

The results of the study suggest significant implications for bank managers. First, considering the outcome of CSR on the performance, CSR should not be treated as an additional activity; rather, it should be seen as a core activity or function of the business that companies should pay adequate attention to. To have long-term success in the business, CSR activities should be embedded in the business’s core operation, resulting in companies’ better social and financial performance. A company can benefit from the findings by knowing how perceived CSR can enhance the brand’s credibility and consumer identification with the brand, resulting in customer loyalty towards the brand. It is evident in many studies that a consumer’s positive attitude towards a firm’s social activity can significantly influence their perception and behaviors [10]. Hence, CSR has been taken as an obligation for the firm to act toward social welfare and satisfy the stakeholders’ interests [77]. The study suggests the bank’s customers expect their company to engage in socially responsible behavior, which may reward them in building a loyal customer base. The company’s involvement in CSR activities has many advantages for them. These acts have a broad impact on the brand’s reputation, which results in enhanced credibility of the brand and strong customer identification towards the brand, leading to brand loyalty. Nowadays, since the implementation of the Company Bill of 2013 in India, investment in CSR activities has increased, so companies should think of innovative ways to invest their money into CSR activities that can have a larger impact on society. Above all, to harness the investment made in these CSR programs, they should be communicated through various communication platforms to increase their awareness among consumers [41].

5. Conclusions

CSR is an emerging phenomenon and presents an opportunity to guide world businesses toward sustainable and social development. However, there is limited evidence on the impact of socially responsible aspects in banking services and the influence of this on various marketing outcomes. This study expanded the traditional view of CSR effects on consumers and tried to fill the gap by examining the effect of perceived CSR, brand credibility, and brand identification on consumer brand loyalty in banking services. This study develops and examines the theoretical model that explains the direct and indirect relationship between consumer perception of CSR of their banking firms and various marketing outcomes such as brand credibility, brand identification, and brand loyalty. This study set a critical link between CSR and brand loyalty by including brand credibility and brand identification in the path relationship. The results reveal that the direct association between perceived CSR and brand loyalty is insignificant, although the direct effect was observed via CSR to brand credibility and CSR to brand identification. Brand credibility and brand identification can be determined by consumer perception of CSR, so banks should stress various CSR initiatives to enhance their relationship with the customers.

Limitations and Future Research Directions

Apart from the significant findings drawn from the present study, we should acknowledge the study’s limitations that further researchers may address to advance this concept’s knowledge. First, this study’s context belongs to banking services only; this fact should be considered when applying the results drawn from the current study to other business models. The researchers could test the proposed model with more industries, as CSR activities vary across industries due to the different nature of their functions. Thus, to improve generalizability, studies should be conducted on the cross section of industries. Second, the present study considers the role of two indirect (mediating) variables (brand credibility and brand identification) in the association between CSR and brand loyalty. However, other variables, such as intention and attitude, can be tested as a mediator or moderators in the proposed model. Third, it will be interesting and meaningful to see how the impact of CSR on consumer–brand relationships varies according to consumer demographics. Future research may be conducted to see the difference among the different consumer groups based on their gender and age, and findings could be compared. The demographic variables can be added as a control variable in future research. This will help the banks to design their CSR strategies in the future for targeting a specific group.

Author Contributions

Conceptualization, M.F. and I.K.; methodology, M.F.; software, I.K.;.; formal analysis, I.K.; writing—original draft preparation, M.F.; writing—review and editing, M.F.; project administration, I.K. All authors have read and agreed to the published version of the manuscript.

Funding

This research received no external funding.

Institutional Review Board Statement

Not applicable.

Informed Consent Statement

Informed consent was obtained from all subjects involved in the study.

Data Availability Statement

Not applicable.

Acknowledgments

The authors would like to acknowledge the support of Prince Sultan University for paying the Article Processing Charges (APC) of this publication.

Conflicts of Interest

The authors declare no conflict of interest.

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Sustainability 15 00802 g001 550
Figure 1. Hypothesized framework.
Figure 1. Hypothesized framework.
Sustainability 15 00802 g001
Table
Table 1. Sample demographics.
Table 1. Sample demographics.
Characteristics SamplePercentage
Age (years)18–369831.11%
37–5313843.80%
54–696320.00%
>=70165.07%
GenderMale20163.80%
Female11436.19%
Income (monthly INR)<=30,0003611.42%
31,000–55,00013241.90%
56,000–90,0009931.42%
>=91,0004815.23%
Table
Table 2. Scale item and construct evaluation.
Table 2. Scale item and construct evaluation.
Measurement ItemsStandardized LoadingAVECRα
Perceived CSR 0.7220.9030.923
Economic CSR 0.6140.9210.917
“XXX continually improves the quality of their services”0.758
“XXX has procedures in place to respond to every customer complaint”0.914
“XXX monitors their employee’s productivity”0.890
“XXX strives to lower their operational cost”0.884
Environment CSR 0.6740.9060.903
“XXX is concerned with respecting and protecting the environment”0.960
“XXX reduces its consumption of natural resources”0.796
“XXX communicates to its customers about its environmental practices”0.882
Ethical CSR 0.6010.8540.853
“XXX drivers are required to provide accurate information to the customers”0.831
“XXX is recognized as an ethically trustworthy company”0.842
Brand Credibility 0.7230.9540.949
“XXX’s claims about its service are believable”0.902
“XXX has a name you can trust”0.930
“XXX reminds me of someone who’s competent and knows what he/she is doing”0.769
“XXX doesn’t pretend to be something it isn’t”0.976
“XXX is at the forefront of using technology to deliver a better service”0.898
Brand Identification 0.6600.9120.911
“I identify strongly with brand XXX”0.890
“Brand XXX is like a part of me”0.765
“Brand XXX has a great deal of personal meaning for me”0.942
“I feel a strong sense of belonging to brand XXX”0.791
Brand Loyalty 0.6540.8450.843
“I will recommend the service provider to someone who seeks your advice”0.982
“I will do more business with the service provider in the future”0.795
“I will consider the service provider my first choice to buy similar services next time”0.788
“I will say positive things about the service provider to other people”0.830
Table
Table 3. Descriptive statistics.
Table 3. Descriptive statistics.
MeanSDPCSRBCBIBL
PCSR3.531.13***
BC4.240.980.23***
BI3.971.010.450.29***
BL3.841.070.470.320.55***
Notes: PCSR—perceived CSR; BC—brand credibility; BI—brand identification; BL—brand loyalty; SD—standard deviation; ***—p < 0.05.
Table
Table 4. Hypothesis results.
Table 4. Hypothesis results.
HypothesisStructural RelationshipStandardized CoefficientsContrast
H1CSR–brand credibility0.52Supported
H2CSR–brand identification0.25Supported
H3CSR–brand loyalty−0.29Not supported
H4Brand credibility–brand loyalty0.20Supported
H5Brand identification–brand loyalty0.13Supported
p < 0.05.
Table
Table 5. Mediation results.
Table 5. Mediation results.
Total Effects
(CSR- >Brand Loyalty)		Direct Effect
(CSR- > Brand Loyalty)		RelationshipIndirect EffectConfidence Lower BoundInterval Upper BoundConclusion
0.04480.0297H6a CSR > brand credibility > brand loyalty0.0081−0.00990.0278No mediation
H6b CSR > brand identification > brand loyalty0.0070−0.00200.0217No mediation
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Fatma, M.; Khan, I. CSR Influence on Brand Loyalty in Banking: The Role of Brand Credibility and Brand Identification. Sustainability 2023, 15, 802. https://doi.org/10.3390/su15010802

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Fatma M, Khan I. CSR Influence on Brand Loyalty in Banking: The Role of Brand Credibility and Brand Identification. Sustainability. 2023; 15(1):802. https://doi.org/10.3390/su15010802

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Fatma, Mobin, and Imran Khan. 2023. "CSR Influence on Brand Loyalty in Banking: The Role of Brand Credibility and Brand Identification" Sustainability 15, no. 1: 802. https://doi.org/10.3390/su15010802

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