Curvilinear Effects of Corporate Social Responsibility and Benevolence on Loyalty

Abstract

Building consumer loyalty remains a key priority but is also problematic for managers, since many loyalty improvement programs based on corporate associations investments regularly fail to deliver intended results. A possible explanation for this unpleasant situation likely relates to managers’ focus in maximizing rather than optimizing investments in loyalty improvement programs. Building on the corporate social responsibility (CSR) and trust literatures this study conceptualizes and empirically examines the non-linear effects of multiple loyalty and trust determinants, including values-driven CSR motivations, service quality, benevolence and trust. Results suggest the hygiene role of values-driven CSR-induced attributions, the motivator role of consumer benevolence and the bivalent mechanisms of perceived service quality and trust. Furthermore, the study recognizes consumer trust as an important mediating mechanism through which the postulated curvilinearities affect loyalty intentions. The study contributes to the study of consumer loyalty and trust mechanisms, by recognizing these mechanisms as being non-linear and complex.

Keywords: Corporate Social Responsibility, Benevolence, Service Quality, Loyalty, Curvilinear Mechanisms

JEL Classification: M31