The effect of customer perception of CSR initiative on customer loyalty in the hotel industry
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Abstract
Corporate social responsibility (CSR) has become an important aspect of the hotel business, one of the main pillars of the Thai tourism industry. This importance is underpinned by the idea that CSR influences consumer loyalty. For this reason, firms require new variables to respond to customers’ needs. This paper presents a model of the influence of customer perception of CSR initiative on hotel customer loyalty simultaneously including perceived service quality, corporate trust, and self-image congruence. Empirical testing was done through a survey of 138 guests who have experience from 65 hotels with 5 stars in 6 regions of Thailand. The sample selection employed a purposive sampling method, with power sampling by G*Power3.0.1.0. The descriptive statistics were analyzed in term of frequency and percentage. Moreover, structural equation model analysis was performed using the partial least square technique. The results confirm most of our hypothesized effects except the effect of corporate trust on customer loyalty, and indirect effect of customer perception of CSR initiative on customer loyalty via perceived service quality and corporate trust. The findings reveal the importance of understanding that creating positive customer perceptions of CSR will both directly and indirectly affect customer loyalty via self-image congruence. The study recommends that to create a loyalty program, elite hotels could create CSR activities together with customers which incorporates and perpetuates a positive and effective and widely acceptable brand identity.
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