Contributions of corporate social responsibility (CSR) to customer loyalty: The case of selected retail outlets in Zimbabwe

Abstract

The aim of this study was to investigate and draw conclusions on contributions of Corporate Social Responsibility (CSR) on customer loyalty using the two giant retail players – Spar Zimbabwe and TM Pick n Pay .The main research question was “Does Corporate Social Responsibility contribute positively to customer loyalty of the retailers in Zimbabwe?” The study was mainly guided by the positivism paradigm hence it adopted the quantitative design. As such the research approach was deductive as it was meant to test hypotheses which were presented in Chapter One of the report. To collect primary data, the research applied a survey strategy in which a structured questionnaire was administered among the selected respondents from the retail sector. The study population comprised of customers of the two retail outlets, estimated to be 5000 per week from which a sample of 357 was selected using the stratified sampling and simple random sampling techniques. Statistical analysis was conducted using SPSS version 25. Research findings confirmed the relationships between perceived service quality, trust and customer loyalty. Business practice CSR reputation targeting primary stakeholders was found to have a strong relationship with perceived quality and trust, but the relationship between philanthropic CSR reputation and trust has a positive relationship with a moderate effect. From the research data gathered and analysed, it was revealed that strategic efforts should be exerted on CSR, due to its value in contributing positively to service quality, trust and loyalty, which are regarded as important in bringing about sustainable competitive advantages and profitability for any organisation .It is therefore very important and relevant for the authorities to remember that when allocating resources for CSR, corporations should focus more on fulfilling the needs of their primary stakeholders who contribute to the companies’ profitability. Responsible business practices should be developed to create better quality customer perception which leads to higher loyalty and profitability. Limitations and suggestions for future research are also discussed.