The Influence of Economic Corporate Social Responsibility on Customer Loyalty in Safaricom Kenya Limited

Abstract

Many firms are beginning to realize the importance of Corporate Social Responsibility and its impact on societal well-being. The study sought to examine the relationship between CSR and customer loyalty in Safaricom Kenya Limited. Based on the study, this paper discusses the influence of economic CSR on customer loyalty in Safaricom Kenya Limited. The study hypothesized that there is a relationship between economic CSR and customer loyalty in Safaricom. Expectation Disconfirmation Theory was used to ground the study and the target population included all Safaricom customers in Kenya. The study utilized a correlational research design. Data was collected using the mall intercept method where ten different locations were selected in Eldoret for this purpose. A total of 400 questionnaires was administered to the respondents sampled through systematic random sampling technique. Pearson's product moment correlation was used to establish the relationship between CSR dimensions and customer loyalty. The findings indicated the existence of positive association between economic CSR and customer loyalty in Safaricom Kenya Limited. A test on hypothesis was conducted through multiple regression analysis and at 5% confidence level. The results revealed that the economic CSR dimension positively related to customer loyalty. Based on the research findings, it was recommended that besides profit making motive, firms should put more emphasis on CSR initiatives for the benefit of society as this earns them good corporate image and also helps them in retaining their customers as well as attract new ones. The study highlights the importance of CSR in businesses.