Corporate Social Responsibility as a Factor Promoting Customer Loyalty in the Latvian Retail Sector
Keywords:customer loyalty, corporate social responsibility, retailing, competitiveness, corporate citizenship
The retail sector is an important engine of the national economy and an indicator of the development of the national economy. Over the last ten years, the total retail turnover index has increased by 31%, which highlights the acquisition of competitive advantages. Businesses need to fight strategically for consumers in an environment where information and services are widely available. Promoting customer loyalty is important for companies, but with the realization of responsible and sustainable operations, corporate social responsibility is one of the ways to promote it. It is important to understand how important corporate responsibility is to consumers and what corporate social responsibility activities are now important to consumers to draw conclusions about their impact on customer loyalty. The aim of the current research is to identify corporate social responsibility activities that promote customer loyalty in the Latvian retail sector. In order to achieve the aim of the work, the following tasks have been set: (1) to study theoretical aspects of corporate social responsibility and customer loyalty; (2) to develop a questionnaire to assess public opinion on the importance of corporate social responsibility in the food retail sector and to conduct an in-depth interview to find out the opinion on the results of the questionnaire in practice;(3) to identify the corporate social responsibility activities that are important to society and promote the loyalty. The research question put forward is: What corporate social responsibility activities affect customer loyalty? For analysis of statistical data, the authors use such methods as internal coherence analysis (Cronbach's alpha), frequency analysis, ranking, factor analysis, graphical analysis. In order to identify the factors influencing corporate social responsibility in the Latvian retail sector, a survey was carried out. As a result of factor analysis a scheme of corporate social responsibility activities was developed for companies in the food retail sector, grouping together the most important directions and activities of corporate social responsibility for consumers in order to promote the customer loyalty.
Keywords: customer loyalty, corporate social responsibility, retailing, competitiveness, corporate citizenship
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