Impact of corporate social responsibility on customer loyalty: Evidence from the Vietnamese jewellery industry

Figures & data

Table 1. Customer survey results

Criteria	Number of survey questionnaires	Percentage
Number of forms distributed	350	100%
Number of forms collected	340	97.1%
Number of valid forms	300	85.7%

Figure 1. Proposed model.

Table 2. Summary of scales

No.	Contruct	Number of Observations	Cronbach’s Alpha	Evaluate
1	CSR (CSR)	5	0.924	Satisfactory
2	WOM (WOM)	5	0.939	Satisfactory
3	Trust (NT)	4	0.957	Satisfactory
4	Customer satisfaction (HL)	4	0.885	Satisfactory
5	Customer loyalty (TT)	4	0.911	Satisfactory

Table 3. KMO and Bartlett’s test of sphericity

KMO measure of sampling adequacy		.900
Bartlett’s test of sphericity	Approx. Chi-square	6464.271
	df	231
	Sig.	.000

Table 4. Model fit summary

Model	RMSR	GFI	AGFI	PGFI
Default model	.034	.889	.853	.671
Saturated model	.000	1.000
Independence model	.360	.161	.081	.147

Table 5. AVE

No.		AVE
1	TT	0.694
2	HL	0.660
3	CSR	0.708
4	WOM	0.738
5	NT	0.859

Figure 2. Results of model fit assessment through CFA.

Figure 3. Hypothesis testing.

Table 6. Regression weights

			Estimate	SE	CR	P	Label
NT	<—	CSR	.587	.066	8.879	***
HL	<—	CSR	.232	.068	3.398	***
HL	<—	NT	.452	.059	7.708	***
WOM	<—	NT	.366	.049	7.410	***
WOM	<—	HL	.187	.052	3.586	***
WOM	<—	CSR	.316	.053	5.973	***
TT	<—	CSR	.202	.044	4.555	***
TT	<—	HL	.097	.041	2.384	.017
TT	<—	NT	.207	.042	4.907	***
TT	<—	WOM	.005	.050	.106	.916
CSR4	<—	CSR	1.000
CSR3	<—	CSR	.898	.051	17.603	***
CSR5	<—	CSR	.977	.051	19.147	***
CSR2	<—	CSR	.927	.048	19.118	***
CSR1	<—	CSR	.942	.048	19.602	***
WOM3	<—	WOM	1.000
WOM2	<—	WOM	.919	.052	17.831	***
WOM1	<—	WOM	1.022	.058	17.755	***
WOM4	<—	WOM	.899	.041	21.757	***
WOM5	<—	WOM	1.032	.047	21.949	***
NT4	<—	NT	1.000
NT1	<—	NT	1.004	.032	31.387	***
NT3	<—	NT	.885	.034	26.390	***
NT2	<—	NT	.904	.036	25.333	***
TT3	<—	TT	1.000
TT2	<—	TT	1.060	.057	18.540	***
TT1	<—	TT	1.566	.096	16.274	***
TT4	<—	TT	1.565	.097	16.193	***
HL2	<—	HL	1.000
HL3	<—	HL	.885	.053	16.800	***
HL1	<—	HL	.812	.053	15.346	***
HL4	<—	HL	.852	.050	16.912	***

Note: ***p < 0.001

From Table 11, the results of the regression weights showed the following evidence:

- CSR affects customer trust (p = 0.000)

- CSR impacts customer satisfaction (p = 0.000)

- CSR affects WOM (p = 0.000)

- CSR affects customer loyalty (p = 0.000)

- Customer trust has an impact on customer satisfaction (p = 0.000)

- Customer trust affects WOM (p = 0.000)

- Customer trust affects customer loyalty (p = 0.000)

- Customer satisfaction affects WOM (p = 0.000)

- Customer satisfaction affects customer loyalty (p = 0.017)

Moreover, the degree of impact of the independent variables on the dependent variable is presented in Table 7.

Table 7. Standardised regression weights

			Estimate
NT	<—	CSR	.416
HL	<—	CSR	–.220
HL	<—	NT	.142
WOM	<—	CSR	.009
WOM	<—	NT	.089
WOM	<—	HL	–.028
TT	<—	WOM	–.018
TT	<—	HL	–.086
TT	<—	NT	.320
TT	<—	CSR	.207
TT5	<—	TT	.874
TT4	<—	TT	.878
TT3	<—	TT	.933
TT1	<—	TT	.819
TT2	<—	TT	.821
HL5	<—	HL	.794
HL1	<—	HL	.838
HL2	<—	HL	.864
HL4	<—	HL	.822
HL3	<—	HL	.748
CSR4	<—	CSR	.861
CSR2	<—	CSR	.955
CSR3	<—	CSR	.520
CSR1	<—	CSR	.588
WOM4	<—	WOM	1.006
WOM1	<—	WOM	.816
WOM2	<—	WOM	.511
WOM3	<—	WOM	.370
NT2	<—	NT	.883
NT3	<—	NT	.812
NT1	<—	NT	.712

Table 8. Summary of hypothesis testing results

No.	Hypothesis	Path Coefficient	P-value	Study Results
1	CSR—> Trust	0.503	0.000***	Accepted
2	CSR—> Customer satisfaction	0.211	0.000***	Accepted
3	CSR—> WOM	0.308	0.000***	Accepted
4	CSR—> Customer loyalty	0.296	0.000***	Accepted
5	Trust—> WOM	0.417	0.000***	Accepted
6	Trust—> Customer satisfaction	0.480	0.000***	Accepted
7	Trust—> Customer loyalty	0.355	0.000***	Accepted
8	Customer satisfaction—> WOM	0.200	0.000***	Accepted
9	Customer satisfaction—> Customer loyalty	0.157	0.017*	Accepted
10	WOM—> Customer loyalty	0.008	0.916	Rejected

Note: *p < 0.05, **p < 0.01 and ***p < 0.001

Table

No.	Observed variables	Code	Source
Corporate social responsibility (CSR)
1	The jewellry company always provide accurate information about products to customers.	CSR1	McGuire (1963); Du et al. (2007); Mandhachitara and Poolthong (2011)
2	The jewellry company always care about the interests of customers.	CSR2
3	The company’s jewellry products are affordable and reasonable.	CSR3
4	The jewellry company always treat customers fairly, always have programs to support social and cultural activities.	CSR4
5	The jewellry company always bring the best products to customers.	CSR5
Word-of-mouth (WOM)
6	I often share the policies’ benefits that the jewellry company bring to me, so that everyone knows.	WOM1	Mandhachitara and Poolthong (2011)
7	I always have a good perception of the jewellry company and shares his or her percept to friends and relatives.	WOM2
8	I give the dissemination of the enterprise’s preferential policies and programs in discussions with other people.	WOM3
9	When introducing the jewellry company to other people, I always identify the business as one of the successful businesses	WOM4
10	Talking about jewelry industry, I always mention the jewellry company	WOM5
Trust
11	I trust completely into the jewellry company	NT1	Hosmer (1994); Salmones, Crespo, Bosque et al. (2005b)
12	I have a high trust on jewellry company’s products	NT2
13	I really believe on the quality of the company’s products	NT3
14	I am confident in the company’s commitments.	NT4
Customer satisfaction
15	The company’s products meet the requirement of customers.	HL1	Rashid et al. (2013)
16	I am completely satisfied with the company’s products	HL2
17	Choosing the jewellry company is my right choice to buy jewellry.	HL3
18	I am completely satisfied with the program/policy of the jewellry industry.	HL4
Customer loyalty
19	I recommend the jewellry company’s products to other people.	TT1	Salmones, Crespo, Bosque et al. (2005b); Balqiah et al. (2011)
20	I will talk well about the jewellry company to other people.	TT2
21	I am a loyal customer of the jewellry company	TT3
22	I still intend to continue to be a customer of the company	TT4

Table

Criteria	Frequency	Percentage (%)
1/ Gender
Female	184	61.3
Male	116	38.7
Total	300	100
2/ Age
18–24 years	52	17.3
25–34 years	155	51.7
35–44 years	63	21.0
45–60 years	25	8.3
> 60 years	5	1.7
Total	300	100
3/ Education level
High school	57	19.0
Vocational education or training centre qualification	122	40.7
Over undergraduate	121	40.3
Total	300	100
4/ Occupation
Students	12	4.0
Officers and employees	84	28.0
Business	139	46.3
Others	65	21.7
Total	300	100

Total variance explained

Component	Initial Eigenvalues			Extraction Sums of Squared Loadings			Rotation Sums of Squared Loadings
	Total	% of Variance	Cumulative %	Total	% of Variance	Cumulative %	Total	% of Variance	Cumulative %
1	11.115	50.522	50.522	11.115	50.522	50.522	3.986	18.118	18.118
2	2.201	10.004	60.526	2.201	10.004	60.526	3.801	17.275	35.393
3	1.781	8.094	68.620	1.781	8.094	68.620	3.458	15.718	51.111
4	1.495	6.794	75.413	1.495	6.794	75.413	3.257	14.804	65.914
5	1.074	4.880	80.293	1.074	4.880	80.293	3.163	14.379	80.293
6	.562	2.554	82.847
7	.475	2.161	85.008
8	.420	1.909	86.917
9	.398	1.808	88.725
10	.319	1.451	90.176
11	.298	1.355	91.531
12	.281	1.277	92.808
13	.269	1.222	94.030
14	.243	1.104	95.134
15	.235	1.070	96.204
16	.193	.877	97.082
17	.156	.710	97.792
18	.145	.657	98.449
19	.133	.605	99.055
20	.095	.432	99.487
21	.063	.288	99.774
22	.050	.226	100.000

Extraction method: principal component analysis.

Table

	Component
	1	2	3	4	5
CSR4	.861
CSR3	.822
CSR5	.806
CSR2	.803
CSR1	.760
WOM3		.805
WOM2		.793
WOM1		.765
WOM4		.752
WOM5		.737
NT4			.849
NT1			.828
NT3			.805
NT2			.784
TT3				.832
TT2				.805
TT1				.798
TT4				.790
HL2					.838
HL3					.790
HL1					.768
HL4					.730

Extraction method: principal component analysis.

Rotation method: Varimax with Kaiser normalisation.

a. Rotation converged in six iterations.

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