Corporate social responsibility and service innovation on customer loyalty: An empirical investigation in wealth management services

Customer loyalty is crucial for firms to generate positive returns. Creation of customer loyalty is a challenge for service firms because switching service firms can represent a risk. The purpose of this paper is to examine how wealth managers select and implement corporate social responsibility (CSR) and service innovation strategies to influence customer loyalty.

A review of the related literature indicated that scant studies have determined the meanings and outcomes of CSR and service innovation. Therefore, the roles of CSR and innovation were examined in this study to evaluate how these factors affect customer loyalty in a wealth management context. The authors evaluated customer advocacy, relationship quality, and relationship value as mediating variables, and formulated six hypotheses. Data were collected using a questionnaire survey distributed to wealth management customers in Taiwan. All the hypotheses were verified using a structural equation model and data collected from the respondents.

The results indicated that relationship quality and value are positively related to customer loyalty, and customer advocacy is positively related to both relationship quality and value. In addition, CSR and service innovation are positively related to customer advocacy.

This research was limited to collecting data related to specific service providers, and therefore consumers in other countries should be examined to test the robustness of the theoretical model. The results of analyses conducted on other industries and in other countries might differ.

In the wealth management service context, CSR and service innovation capabilities contribute to customer advocacy, which can achieve superior relationship quality, relationship value, and customer loyalty.

This paper contributes to investigations on the effect of CSR and service innovation on customer loyalty by adopting customer advocacy, relationship quality, and relationship value as mediators.