Impact of corporate social responsibility on customer loyalty with mediating role of brand trust (with special reference of Ceylon Biscuits Limited in Colombo District)

Abstract

This study examines the effect of various corporate social responsibility (CSR)activities (market, society and environmental support) conducted by organizations oncustomer loyalty in the Ceylon Biscuits Limited of Colombo district. The interveningeffect of brand trust between various facets of CSR and customer loyalty is alsoinvestigated. The respondents of the study were 210 customers from in the Colombodistrict. The impact of CSR activities was tested with the help of regression analysis.The results of research suggest that CSR activities made in the interest of market,society and the environment have a significant and positive impact on customerloyalty. Although CSR activities made for supporting these three parts and helpfuleffect on customer loyalty in Colombo district. Brand trust mediates between the CSRfor (Customers & Local Community) and customer loyalty. Moreover, no interveningevidence of brand trust is found between the corporate social responsibility(Environmental Support) and customer loyalty. Descriptive statistics and hypothesistesting as data analysis technique while employing statistical Package for SocialScience (SPSS) as the primary data analyzing tool. Data were analyzed usingdescriptive statistics, correlation analysis and regression analysis to test theformulated hypotheses and the significance and reliability of the findings.