Impact of perceived CSR practices on customers loyalty. The mediating role of reputation and customer satisfaction

Abstract Customers' loyalty is considered as an important factor ensuring overall organizational success in the long run. The purpose of this investigation is to determine how customer loyalty in Pakistan's banking sector affected by perceived corporate social responsibility (CSR) practice. To end this, the present study collected data from 378 respondents using convenience sampling technique. To test proposed hypothesis, the study used correlation analysis, regression analysis, and Baron and Kenny method used to test mediation effect of variables together with the Sobel test. The result of the study shows a significant positive association among perceived CSR, bank reputation and customers loyalty and customer satisfaction. This study further shows that bank reputation has a mediating effect between perceived CSR and customer loyalty, but the relationship between CSR practices and customer loyalty has a negative effect on customer satisfaction. It was found that there was no mediating effect of degree. The findings highlight the importance of allocating resources to CSR initiatives and reputation management as a means of increasing customer loyalty. The results provide an important academic addition to the current body of research on the impact of CSR on the development of customer loyalty, with a particular focus on the Pakistani banking industry.