Shabbir, Muhammad ORCID: https://orcid.org/0000-0002-0796-0456, Mohd Shariff, Mohd Noor, Salman, Rabia, Bin Bakar,, Muhammad Shukri and Shabbir, Muhammad Farooq (2018) Corporate social responsibility and customer loyalty in Islamic banks of Pakistan: A mediating role of brand image. Academy of Accounting and Financial Studies Journal, 22 (1).

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Abstract

Banks have turned out to be the foundation of economy that assumes as an imperative part for development of business organizations. The current era is referred as information age where customers are highly informed. Moreover, it is imperative for banks to remain competitive in this era of information and competition. Every business needs to retain customer to survive in the competition. The customer’s knowledge with respect to their assets, has constrained the banks to incorporate corporate social responsibility. The organizations are worried about coordinating CSR activities to develop better corporate reputation (Meehan, Meehan & Richards, 2006). Recently, gigantic growth has noticed in Islamic banking industry of Pakistan. More and more commercial banks are offering Islamic financial products which turn into an inevitable intense competition. Customer loyalty is a tool to retain customers specially in competitive environment, it is crucial for business survival (Jacoby & Kyner, 1973). Businesses are concerned to take part in social activities to build a positive image of business in the eyes of customers (Martínez, Pérez & del Bosque, 2014). As asserted by Bravo, Montaner & Pina (2012) customer loyalty is influenced by corporate image of business.

Islamic banking industry is inclined to take part in CSR activities to enhance corporate image of banks. Alamro & Rowley (2011) argued that brand preference is positively influenced by brand image and reputation. Moreover, Ricks (1997) found that businesses take part in social activities build a positive image of business which make customer to become more loyal and proud to be affiliated with such a business. Carroll & Shabana (2010) found that the relationship among corporate social responsibility and customer loyalty is mediated by other factors (Boulstridge & Carrigan, 2000). The role of different mediating variables has been analysed in the framework of CSR and customer loyalty. This study is an effort to explore the missing link of mediating role of corporate image in the relationship of corporate social responsibility and customer loyalty in the context of Islamic banking industry of Pakistan. The study is structured as; second part of the study is to give a brief overview of past literature on corporate social responsibility and customer loyalty. We develop hypotheses on the basis of literature and in methodology section we discuss about instrument for data collection and statistical tool to verify the relationship. In last section we discuss the results and provide recommendations on the basis of results.

Item Type:	Article
Status:	Published
School/Department:	London Campus
URI:	https://ray.yorksj.ac.uk/id/eprint/10184

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