The Influence of Corporate Social Responsibility on Customer Loyalty : Evidence from the Travel Agencies and Hotels

Document Type : Original Article

Authors

1 Hotel Studies Department, Faculty of tourism and hotels, University of Sadat City

2 Tourism Studies Department, Faculty of tourism and hotels, University of Sadat City

Abstract

Despite the increasing interest in corporate social responsibility (CSR) marketing practices, the role of CSR has little been explored in the area of tourism and hospitality marketing especially in regard to the potential effects of CSR initiatives on customer responses. Also, there are few scholars, if any, who overviewed this concept in the developing countries. By understanding the effectiveness of CSR practices in the market place and its impact on customers’ responses toward the company, travel agencies and hotel operation will be able to attract new customers as well as keep strong relationships with current customers. CSR marketing will provide the firm a competitive edge over its competitors.
 
This paper explores how customers’ perceptions of firms’ corporate social responsibility (CSR) determine customers’ behaviour and influence customer loyalty through satisfaction and commitment. To investigate such influence, data were collected through a questionnaire distributed to a sample of 350 customers of Egyptian hotels and 300 customers of Egyptian travel agencies. A total of 335 responses from hotels’ customers and 260 responses of travel agencies’ customers were collected and analyzed using structural equation modelling method. Results showed that CSR contribute to achieving customer loyalty in both sectors and confirmed the roles of satisfaction and commitment as mediating variables. These results imply that CSR can be used as a main tool for marketing strategy. Certain CSR marketing actions could work better than others to create positive identification and image of the company.

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