Deciphering Customer Loyalty Dynamics in Retail Banking: The Interplay of Service Quality, CRM, and CSR

While the relationships between service quality, satisfaction, loyalty, and customer relationship management (CRM) have been extensively studied in the literature, there is limited knowledge on how corporate social responsibility (CSR) moderates these relationships within the banking sector, particularly under conditions of weak institutions, low trust, and limited social pressure for responsible behavior and consumer protection. This study investigates customer loyalty dynamics in retail banking, focusing on the direct influence of service quality and CRM on customer satisfaction and loyalty, as well as their indirect effects on loyalty through customer satisfaction. We also explore the potential moderating role of CSR associations in this relationship. Using a quantitative approach, we collected 540 usable responses through a self-administered survey targeting retail bank customers in Haiti. Hypotheses were tested using covariance-based structural equation modeling. Our findings confirm the direct effects of service quality and CRM on customer satisfaction and loyalty, as well as the direct effect of customer satisfaction on loyalty. Additionally, we validate the indirect effects of service quality and CRM on loyalty through customer satisfaction. However, we did not find empirical support for the hypothesized moderating and moderated mediating effects of CSR associations. These results underscore the ongoing importance of prioritizing enhancements in service quality and CRM. Despite not directly reinforcing existing relationships, CSR remains pivotal for cultivating a robust customer base in retail banking.