Customer responses on CSR: evidences from Vietnamese banking sector

Abstract

The purpose of this paper is to investigate the impacts of corporate social responsibility (CSR) on the relationship of commercial bank and its customers. It also aims to identify the linkages between CSR practices of the bank and the purchase behavior of customers. This study employs a quantitative research design to test a selective CSR model which is considered a suitable model applied for commercial banks. A structural equation model is tested with information collected from customer survey to determine if customer’s CSR perceptions support their continuous intention to purchase banking services. The study identifies the component factors of CSR of commercial bank. The results show that only the bank’s economic and ethical responsibilities have affected on the bank and customer relationship, thereby influencing the customer’s purchase behavior. However, the tested results show that there is no impact of legal and environmental responsibilities on the bank and customer relationship and thus no influence on purchase intention of customers. Although there is a rich stream of research reporting the impact of CSR on purchasing intention but there is no research about which component of CSR affects the direction of purchase intention of customers, among several components of CSR. This research finds out not all components of CSR indirectly affect the customer’s purchase behavior and as a result this paper provides valuable insights, and contributes to existing literature. Moreover, research results provide reference information for banking managers to allocate resources to CSR components which directly influence on purchase intention of customers, to reinforce the bank and customer relationship and increase customer’s using of banking services. However, the context of the study may be limited by its single category, banking services in Vietnam.