Corporate Social Responsibility Activities Factors and Their Affecting on Maintaining Customer Satisfaction and Loyalty in Hypermarket Industry in Malaysia
Keywords:
hypermarket, corporate social responsibility, customer satisfaction, customer loyaltyAbstract
The purpose of this paper is to contribute to knowledge on the impact of corporate social responsibility (CSR) activities (community support, environmentally friendly, sell locally produced products, treating employees) on customer satisfaction and loyalty (hypermarkets). This study aims to examine the influence of CSR on customer satisfaction and customer loyalty of Malaysian consumers and whether they consider CSR for hypermarket before making purchase decisions of the products and services. With the support of empirical evidence and rational arguments, a set of eleven (4) hypotheses were proposed for testing. A sample of 384 respondents loyal to hypermarket has been used to collect the data using a convenience sampling method. Data was collected from the hypermarket in Kuala Lumpur. Statistical analysis was done through SPSS for primary analysis and Smart PLS for analysis of the outer model and testing the relationships hypothesized. Findings revealed that all the hypotheses were significantly effective. The originality and value of this paper is the study of consumer-oriented CSR as a variable that allows competitive differentiation of the company, by improving the relationship with the consumers and the generation of satisfaction and loyalty. One of the major conclusions of the study is that CSR and can only yield optimal performance for the customer satisfaction and customer loyalty if it is combined with the knowledge, experiences, and outstanding abilities in the use CSR activities dimensions.
References
B. Carroll and K. M. Shabana, “The business case for corporate social responsibility: A review of concepts, research and practice,” International Journal of Management Reviews, 2010.
Aguilera-Caracuel, J., Guerrero-Villegas, J., Vidal-Salazar, M. D., & Delgado-Márquez,
B. L. (2015). International cultural diversification and corporate social performance in multinational enterprises: The role of slack financial resources.
Arnold, S.J. and L.M. Narang, 2000. Market entry effects of large format retailers: A stakeholder analysis. International Journal of Retail & Distribution Management, 28(4/5): 139-154.Available at: https://doi.org/10.1108/09590550010319896.
Gardi, B., Hamawandy, N. M., Sulaiman, V., Saeed, H., Ali, R. M., Sulaiman, A. A., & Mahmood, S. A. (2020). The Effect of Capital Competence on the Profitability of Development and Investment Banks in Turkey. Solid State Technology, 63(5), 12571– 12583.
Hamawandy, N. M., Omar, A. J., Abubakr, Z. A., Sulaiman, V., & Saeed, H. (2020). Review the Interaction Between Transactions with Affiliated Entities and Income Management in Companies Admitted To Tehran Stock Exchange Income management.
Ismael, B. A., Ahmed, R. A., Yaba, J. A., Hamawandy, N. M., Abdullah, R., Jamil, D. A., & Sulaiman, A. A. (2020). The Effects of Computerized Accounting System on Auditing Process : a Case Study from Northern Iraq. Jain 2002.
MIR, N. M., Abubakr, Z. A., Jawhar, A. M., Omar, R., Onn, U. H., & Science, F. (2020). the Effect of Exchange Rate and Inflation on the Economic Performance of Selected Industries Stock -Iran on the Economic Performance of Selected. Solid State Technology, 63(6), 12584–12602.
Othman, B. J., Hamawandy, N. M., & Aziz, H. T. (2020). Interpret and Apply Economic Analysis to The Role of International Business Organizations and Their Activities : A Case study of Adelia.
Sulaiman, A. A., Hamawandy, N. M., Polytechnic, E., Tun, U., & Onn, H. (2020). THE IMPACT OF THE RESTATEMENT OF FINANCIAL STATEMENTS ON COMPANY GROWTH. 7(15), 4615–4624.
Avgeli, V., Smarianakis, D., & Sotiriades, M. (2020). Correlating Customer Satisfaction and Customer Loyalty: The Case of International Tourists in Cretan Resort Hotels. Journal of Tourism and Hospitality Management, 8(2), 43-59.
Ogiemwonyi, O., Harun, A., Othman, B., Ismael, D., Alam, M. N., & Hamawandy, N.
M. (2020). Analyzing Issues and Challenges on Environmentally Supportive Behaviour Among Malaysian and Nigerian Consumers. Sci.Int.(Lahore), ISSN 1013-5316, 32(1), 87–92. http://www.sci-int.com/pdf/637182281460007063.pdf
Bagram, M., & Khan, S. (2012). Attaining customer loyalty: The role of consumer attitude and consumer behavior. International Review of Management and Business Research, 1(1), 1-8.
Brown, Steven P., Lam, Son K. (2008), “A Meta-Analysis of Relationships Linking Employee Satisfaction to Customer Responses,” Journal of Retailing, 84 (September), 243–255
DABIJA, D. C., BEJAN, B. M. (2017): Behavioral Antecedents for Enhancing Green Customer Loyalty in Retail. In: Pamfilie, R., et al. [eds.]: BASIQ International Conference: New Trends in Sustainable Business and Consumption (pp. 183–191). Bucharest, Editura ASE.
Dabija, D. C., Bejan, B. M., & Grant, D. B. (2018). The impact of consumer green behaviour on green loyalty among retail formats: A Romanian case study. Moravian geographical reports, 26(3), 173-185.
Al-Kake, F., & Hasan, N. M. (2019). The Effect of Corporate Governance on Firm’s Profitability: Evidence from London Stock EX- CHANGE. International Journal of Psychosocial Rehabilitation, 23(2), 727–742. https://doi.org/10.1080/10599231.2019.1572421
Baban, & Hasan, N. N. (2019). Impact of the foreign direct investment on the economy of the United Kingdom. International Journal of Psychosocial Rehabilitation, 23(2), 743–763. https://doi.org/10.37200/IJPR/V23I2/PR190328
Hamawandy, N. M., Omar, A. J., Abubakr, Z. A., Sulaiman, V., & Saeed, H. (2020). Review the Interaction Between Transactions with Affiliated Entities and Income Management in Companies Admitted To Tehran Stock Exchange Income management.
Ismael, B. A., Ahmed, R. A., Yaba, J. A., Hamawandy, N. M., Abdullah, R., Jamil, D. A., & Sulaiman, A. A. (2020). The Effects of Computerized Accounting System on Auditing Process : a Case Study from Northern Iraq. Jain 2002.
Jabbar, B., Al-Kake, F., Diah, M. L. M., Othman, B., & Hasan, Z. M. (2019). This study examines the antecedents and the effects of knowledge management and information technology in the manufacturing industry. International Journal of Psychosocial Rehabilitation, 23(2), 899–908. https://doi.org/10.37200/IJPR/V23I2/PR190339
Ogiemwonyi , Humran, N. (2020). The Relationship between Service Quality Dimensions and Customer Satisfaction towards Hypermarket in Malaysia. International Journal of Psychosocial Rehabilitation, 24(5), 2062–2071. https://doi.org/10.37200/ijpr/v24i5/pr201904
Ogiemwonyi, O., Harun, A., Othman, B., Ismael, D., Alam, M. N., & Hamawandy, N.
M. (2020). Analyzing Issues and Challenges on Environmentally Supportive Behaviour Among Malaysian and Nigerian Consumers. Sci.Int.(Lahore), ISSN 1013-5316, 32(1), 87–92. http://www.sci-int.com/pdf/637182281460007063.pdf
Doherty, A.M. and Quinn, B. (1999), “International retail franchising: an agency theoryperspective”,International Journal of Retail & Distribution Management, Vol. 27 No. 6,pp.224-236.
Dorasamy, N., (2013). Corporate social responsibility and ethical banking for developing nation. Journal of Economics and Behavioral Studies, 5(11), 777-785.
Esbjerg, L. and T. Bech-Larsen, 2009. The brand architecture of grocery retailers: Setting material and symbolic boundaries for consumer choice. Journal of Retailing and Consumer Services, 16(5): 414-423.Available at: https://doi.org/10.1016/j.jretconser.2009.06.002.
Esbjerg, L., & Bech-Larsen, T. (2009). The brand architecture of grocery retailers: setting material and symbolic boundaries for consumer choice. Journal of Retailing and Consumer Services, 16(5), 414-423.
Espejel, J., Fandos, C., & Flavian, C. (2008). Consumer Satisfaction: A Key Factor of Consumer Loyalty and Buying
G. J. Biehal and D. A. Sheinin, “The influence of corporate messages on the product portfolio,” Journal of Marketing, vol. 71, no. 2, pp. 12-25, 2007.
Ghaffarkadhim, K., Harun, A., Othman, B. A., & Raja, P. (2019). Hypermarkets in malaysia: Issues of expansion, distribution and corporate social responsibility. International Journal of Psychosocial Rehabilitation, 23(2), 659-670.
Gupta, K. K., & Bansal, I. (2012). Development of an instrument to measure Internet banking service quality in India. International Refereed Research Journal, 2(2), 11-25
Hair Jr, J. F. (2006). Black, Wc, Babin, Bj Anderson, Re & Tatham, Rl (2006). Multivariate data analysis, 6.
Hair, J. F., Risher, J. J., Sarstedt, M., & Ringle, C. M. (2019). When to use and how to report the results of PLS-SEM. European Business Review.
Hassan, H., Bakar Sade, A., & Sabbir Rahman, M. (2013). Malaysian hypermarket retailing development and expansion. International Journal of Retail & Distribution Management, 41(8), 584-595.
Heinonen, K. (2014). Multiple perspectives on customer relationships. International Journal of Bank Marketing, 32(6), 450-456.
Intention of a PDO Food Product. British Food Journal, 110(9), 865-881.
J. L. Campbell, “Institutional analysis and the paradox of corporate social responsibility,” American Behavioral Scientist, vol. 49, no. 7, pp. 925-938, 2006.
Kadhim, K. G., Harun, A., Othman, B., Falah, F. S., & Alfarttoosi, A. (2020). The Effect of Corporate Social Responsibility Activities on Customer Satisfaction Towards Hypermarkets in Kuala Lumpur Malaysia. International Journal of Advanced Science and Technology, 29, 3974-3988.
Kadhim, K. G., Harun, A., Othman, B., Melhem, I., Mechman, A., & Mohammed, A. THE INFLUENCE OF CORPORATE SOCIAL RESPONSIBILITY COMMUNICATION (CSR) ON CUSTOMER SATISFACTION TOWARDS HYPERMARKETS IN KUALA LUMPUR MALAYSIA.
Marques, S.H., Cardoso, M.M., Palma, A.P. 2013. Environmental factors and satisfaction in a specialty store. Int. Rev. Retail Distrib. Consum. Res. 23 (4), 456-47,4.
Menon , K. , Dubé , L. , 2000. Ensuring greater satisfaction by engineering salesperson re sponse to customer emotions . J. Retail . 76 ( 3 ) , 285-307 . Understanding customer experience
Osborn, Suzanne Barry (2001). Desperately seeking integrity; companies must strive to fill the latest customer demand. Chain Store Age, 77 (3), 54.
Othman, B., Harun, A., Rashid, W., Nazeer, S., Kassim, A., & Kadhim, K. (2019). The influences of service marketing mix on customer loyalty towards Umrah travel agents: Evidence from Malaysia. Management Science Letters, 9(6), 865-876.
P. Kotler and N. Lee, Corporate Social Responsibility: Doing the Most Good for Your Company and Your Cause, N. J. Hoboken and John Wiley, 2005.
Pektaş, G. Ö. E., Yüksel, M., & Durmaz, A. (2017). Does Locally Produced Food Create Loyalty?: An Investigation On Locavore Attitude As Control VARIABLE.
Pino, G., Amatulli, C., De Angelis, M., & Peluso, A. M. (2016). The influence of corporate social responsibility on consumers’ attitudes and intentions toward genetically modified foods: Evidence from Italy. Journal of Cleaner Production, 112, 2861–2869.
Pitta, D., Franzak, F., & Fowler, D. (2006). A strategic approach to building online customer loyalty: Integrating customer profitability tiers. Journal of Consumer Marketing, 23(7), 421-429
Puccinelli. N.M., Goodstein, R.C, Grewal. D., Price, R. Raghubir, P., Stewart, D., 2009. Customer experience management in retailing understanding the buying process.J. Retail. 85 (1) 15-30.
Ranjanee, K.S., R. Alavi, K. Abdullah and M. Arif Zakaullah, 2009. Spillover effects of foreign hypermarkets on domestic suppliers in Malaysia. International Journal of Retail & Distribution Management, 37(3): 226-249.
Rashid, M., Abdeljawad, I., Ngalim, S.M., & Hassan, M.K., (2013). Customer-centric corporate social responsibility. Management Research Review, 36(4), 359-378.
RESHMI, R., JOHNSON, B. (2014): A study on the buying behaviour of green products. International Journal of Research in Commerce & Management, 5(12): 39– 45.
S. Sen and C. B. Bhattacharya, “Does doing good always lead to doing better? Consumer reactions to corporate social responsibility,” Journal of Marketing Research, vol. 38, no. 2, pp. 225-43, 2001.
Saeidi, S. P., Sofian, S., Saeidi, P., Saeidi, S. P., & Saaeidi, S. A. (2015). How does corporate social responsibility contribute to firm financial performance? The mediating role of competitive advantage, reputation, and customer satisfaction. Journal of Business Research, 68(2), 341–350. https://doi.org/10.1016/j.jbusres.2014.06.024.
SATHIYAVANI, S., & GURUSAMY, P. IMPACT OF CORPORATE SOCIAL RESPONSIBILITY IN BANKING SECTOR WITH REFERENCE TO COIMBATORE CITY.
Setó-Pamies, D. (2012). Customer loyalty to service providers: examining the role of service quality, customer satisfaction and trust. Total Quality Management, 23(11), 1257- 1271.
Singh, A. K. (2019). Customer Satisfaction as an Antecedent of Customer Loyalty. International Journal of Research in Social Sciences, 9(6), 505-515.
Sun, K. A., & Kim, D. Y. (2013). Does customer satisfaction increase firm performance? An application of American Customer Satisfaction Index (ACSI). International Journal of Hospitality Management, 35, 68-77.
Swoboda, B., F. Haelsig, D. Morschett and H. Schramm-Klein, 2007. An intersector analysis of the relevance of service in building a strong retail brand. Managing Service Quality: An International Journal, 17(4): 428-448.Available at: https://doi.org/10.1108/09604520710760553.
Swoboda, B., Haelsig, F., Morschett, D. and Schramm-Klein, H. (2007), “An intersector analysis of the relevance of service in building a strong retail brand”, Managing Service Quality, Vol. 17 No. 4, pp. 428-448.
Terblanche, N. S. (2018). Revisiting the supermarket in-store customer shopping experience. Journal of Retailing and Consumer Services, 40, 48-59.
Verma, Y., & Singh, M. R. (2017). Marketing Mix, Customer Satisfaction and Loyalty: an Empirical Study of Telecom Sector in Bhutan. Indian Journal of Commerce and Management Studies, 8(2), 121.
Downloads
Published
How to Cite
Issue
Section
License
You are free to:
- Share — copy and redistribute the material in any medium or format for any purpose, even commercially.
- Adapt — remix, transform, and build upon the material for any purpose, even commercially.
- The licensor cannot revoke these freedoms as long as you follow the license terms.
Under the following terms:
- Attribution — You must give appropriate credit , provide a link to the license, and indicate if changes were made . You may do so in any reasonable manner, but not in any way that suggests the licensor endorses you or your use.
- No additional restrictions — You may not apply legal terms or technological measures that legally restrict others from doing anything the license permits.
Notices:
You do not have to comply with the license for elements of the material in the public domain or where your use is permitted by an applicable exception or limitation .
No warranties are given. The license may not give you all of the permissions necessary for your intended use. For example, other rights such as publicity, privacy, or moral rights may limit how you use the material.
