Do socio-cultural factors affect the relationships between CSR and loyalty in retailing? A three-country investigation

Abstract

Purpose The aim of this research is to investigate the positive effects of corporate social responsibility (CSR) on loyalty to retailers through trust dimensions (competence, benevolence and integrity) taking into account socio-cultural factors (social norms and collectivism) across nations. Design/methodology/approach The authors carried out three quantitative studies (N = 948) in three countries (France, Germany and the United Kingdom [UK]). They then used structural equation modelling to test the model and hypotheses. Findings The results show contingent positive effects of CSR perception on customer loyalty. They underscore indirect effects of CSR on loyalty through the mediation of specific dimensions of trust (competence, benevolence and integrity). The authors also identify significant moderations such that the effects of social norms on CSR and loyalty are stronger in France/Germany than in the UK. The effects of collectivism on CSR and loyalty are stronger in France than in Germany and the UK. Practical implications Retailers can rely on CSR and trust to increase loyalty directly. When communicating CSR activities, retailers have to account for cultural differences in their main markets and adopt adjusted strategies to convince consumers about their CSR efforts. Retailers should understand the social norms of their customers in order to determine the effectiveness of disclosing CSR initiatives. Originality/value Using a cross-cultural perspective, this article extends and enriches knowledge on the relationship between CSR, social norms and loyalty in retailing in different cultural settings. It also underscores the role of trust in building loyalty across nations.