The Influence of Corporate Social Responsibility (CSR) and Service Quality on Customer Loyalty Outcomes: The Private Banking Case in Myanmar THE PRIVATE BANKING CASE IN MYANMAR

Main Article Content

Aung Chan Aye
Phanasan Kohsuwan


         This study aims to investigate the impacts of corporate social responsibility (CSR) and service quality on customer loyalty outcomes of private bank users in Myanmar. Specifically, this study emphasizes four CSR dimensions, five dimensions of service quality, and five customer loyalty outcomes. The quantitative research approach was used to investigate 459 valid responses collected via a questionnaire survey from the users of a private bank in Mandalay, Myanmar.  The Confirmatory Factor Analysis (CFA) and Structural Equation Modeling (SEM) were used to analyze the data. This study found that CSR to Social and Non-social Stakeholder positively influence on Identification and Exclusive Consideration dimensions of customer loyalty outcomes. In addition, this study also found that CSR to Customers positively influence on Exclusive Consideration, Advocacy, Strength of Preference, and Share of Wallet dimensions of customer loyalty outcomes. However, service quality dimensions did not find to have significant effect on any dimensions of customer loyalty outcomes. The findings could contribute to the service loyalty context in the aspect of stakeholder CSR and service quality, including loyalty outcomes. Moreover, the findings could be applied to the development of CSR and service quality strategies to make customers remain with the company and sustain customer loyalty.


Download data is not yet available.

Article Details

Research Article


Abdullah, H. N., & Hilmi, M. F. (2014). Service Quality as Determinant of Customer Loyalty. International Journal of Business and Innovation, 1(6), 1-11. Retrieved from

Ajina, A. S., Japutra, A., Nguyen, B., Syed-Alwi, S. F., & Al-Hajla, A. H. (2019). The importance of CSR initiatives in building customer support and loyalty: Evidence from Saudi Arabia. Asia Pacific Journal of Marketing and Logistics, 31(3), 691-713. doi:10.1108/APJML-11-2017-0284

Alafeshat, R., & Alola, U. V. (2018). Investigating the Nexus of Service Quality and Customer Loyalty in Banking Industry via the Mediating Role of Customer Satisfaction. Academic Journal of Economic Studies, 4(3), 167-176. Retrieved from

Asubonteng, P., McCleary, K. J., & Swan, J. E. (1996). SERVQUAL revisited: a critical review of service quality. The Journal of Service Marketing, 10(6), 62-81. doi:10.1108/0887604961014 8602

Barkemeyer, R., & Miklian, J. (2019). Responsible Business in Fragile Contexts: Comparing Perceptions from Domestic and Foreign Firms in Myanmar. Sustainability, 11(3), 1-18. doi:10. 3390/su11030598

Baumann, C., Elliott, G., & Hamin, H. (2011). Modelling customer loyalty in financial services: A hybrid of formative and reflective constructs. International Journal of Bank Marketing, 29(3), 247-267. doi:10.1108/02652321111117511

Baumgartner, H., & Homburg, C. (1996). Application of Structural Equation Modeling in Marketing and Consumer Research: A review. International Journal of Research in Marketing, 13(2), 139-161.

Bhat, S. A., Darzi, M. A., & Parrey, S. H. (2018). Antecedents of Customer Loyalty in Banking Sector: A Mediational Study. The Journal for Decision Makers, 43(2), 92-105. doi:10.1177/ 0256090918774697

Bhattacharya, C. B., Rao, H., & Glynn, M. A. (1995). Understanding the Bond of Identification: An Investigation of Its Correlates Among Art Museam Members. Journal of Marketing, 59(4), 46-57. doi:10.2307/1252327

Butcher, K., Sparks, B., & O'Callaghan, F. (2001). Evaluative and relational influences on service loyalty. International Journal of Service Industry Management, 12(4), 310-321. doi:10.1108/ 09564230110405253

Byrne, B. M. (2016). Structural Equation Modeling With AMOS (3rd ed.). New York: Routledge.

Chung, K. H., Yu, J. E., Choi, M. G., & Shin, J. I. (2015). The Effects of CSR on Customer Satisfaction and Loyalty in China: The Moderating Role of Corporate Image. Journal of Economics, Business and Management, 3(5), 542-547. doi:0.7763/ JOEBM.2015.V3.243

Day, G. S. (1969). A Tow-Dimensional Concept of Brand Loyalty. Journal of Advertising Research, 9(3), 29-36. doi:10.1007/978-3-642-51565-1_26

Diaz, A. C., & Ruiz, F. J. (2002). The consumer's reation to delay a service. International Journal of Service Management, 13(2), 118-140. doi:10.1108/09564230210425331

Dick, A. S., & Basu, K. (1994). Customer Loyalty: Toward an Integrated Conceptual Framework. Journal of the Academy of Marketing Science, 22(2), 99-113. doi:10.1177/0092070 394222001

Directorate of Investment and Company Administration. (2018). Inclusive Business in Myanmar : An Agenda to Catalyse SocialImpact. Retrieved from

Dwyer, F. R., Schurr, P. H., & Oh, S. (1987). Developing Buyer-Seller Relationship. Journal of Marketing, 51(2), 11-27.

Eklof, J., Podkorytova, O., & Malova, A. (2018). Linking customer satisfaction with financial performance: an empirical study of Scandinavian banks. Total Quality Management & Business Excellence, 1-19. doi:10.1080/14783363.2018.1504621

Eshghi, A., Roy, S. K., & Ganguli, S. (2008). Service Quality and Customer Satisfaction: An Empirical Investigation in Indian Mobile Telecommunication Services. The Marketing Management Journal, 18(2), 119-144. Retrieved from

Feldman, P., & Parraga, A. Z. (2013). Consumer social responses to CSR initiatives versus corporate abilities. Journal of Consumer Marketing, 30(2), 100-111. doi: 10.1108/07363761 311304915

Gabbott, M., & Hogg, G. (1994). Consuemr Behaviour and Services: A Review. Journal of Marketing Management, 10(4), 311-324. doi:10.1080/0267257X.1994.9964277

Ganesh, J., Arnold, M. J., & Reynolds, K. E. (2000). Understanding the Customer Base of Service Providers: An Examination of the Differences Between Switchers and Stayers. ournal of Marketing, 64(3), 65-87. doi:10.1509/jmkg.

Hair, J. F., Black, W. C., Babin, B. J., & Anderson, R. E. (2014). Multivariate data analysis (7th ed.). Harlow, Essex: Pearson.

Hashem, N. D., & Ali, N. D. (2019). The impact of service quality on customer loyalty: A study of dental clinics in Jordan. International Journal of Medical and Health Research, 5(1), 65-68. Retrieved from

Hasim, M. A., Mahmud, N. K., Shamsudin, M. F., Hussain, H. I., & Salem, M. A. (2015). Loyalty Program & Customer Loyalty in Banking Industry. Global Journal of Interdispilinary Social Science, 4(5), 16-21. Retrieved from 2015.html

Hauser, J. R., & Wernerfelt, B. (1989). The Competitive Implications of Relevant-Set/Response Analysis. Journal
of Marketing Research, 26(4), 391-405. doi:10. 2307/3172760

Henderson, D. (2001). Misguided Virtue: False Notions of Corporate Social Responsibility. London: The Institute of Economic Affairs.

Hsu, S.-L. (2018). The Effects of Corporate Social Responsibility on Corporate Image, Customer Satisfaction and Customer Loyalty: An Empirical Study on the Telecommunication Industry. The International Journal of Social Sciences and Humanities Invention, 5(5), 4693-4703. doi:10.18535/ijsshi/ v5i5.08

Hu, L. T., & Bentler, P. M. (1999). Cutoff Criteria for Fit Indexes in Covariance Structure Analysis: Conventional Criteria Versus New Altrnatives. Structural Equation Modeling: A Multidisciplinary Journal, 6(1), 1-55. Retrieved from

Huang, M.-H., Cheng, Z.-H., & Chen, I.-C. (2017). The importance of CSR in forming customer-company. Journal of Services Marketing, 31(1), 63-72. doi:10.1108/JSM-01-2016-0046

Igbudu, N., Garanti, Z., & Popoola, T. (2018). Enhancing Bank Loyalty through Sustainable Banking Practices: The Mediating Effect of Corporate Image. Sustainability, 10(11), 1-11. doi:10. 3390/su10114050

Irshad, A., Rahim, A., & Khan, M. F. (2017). The Impact of Corporate Social Responsibility on Customer Satisfaction and Custoemr Loyalty, Moderating Effect of Corporate Image (Evidance From Pakistan). City University Research Journal. Special issue: AIC, 63-73. Retrieved from Researches.php

Jones, T., & Taylor, S. (2007). The conceptual domain of service loyalty: how many dimensions? Journal of Services Marketing, 21(1), 36-51. doi:10.1108/08876040710726284

Joudeh, J. M., & Dandis, A. (2018). Service Quality, Customer Satisfaction and Loyalty in an Internet Service Providers. International Journal of Business and Management, 13(8), 108-120. doi:10.5539/ijbm.v13n8p108

Jun, M., & Cai, S. (2001). The key determinant of Internet Banking Service Quality: a content analysis. International Journal of Bank Marketing, 19(7), 276-291. doi:10.1108/02652320110 409825

Kamat, K., Pilla, S. K., Pech, R. J., Mello, C. D., & Chang, L.-C. (2017). Service Quality, Customer Satisfaction and Loyalty: A Comparative Study of Hotel with Retail Banking, Hospitals and Retail Service Industries. Revista Latino-Americana De Turismologia, 3(2), 38-49. Retrieved from

Kardes, F. R., Kalyanaram, G., Chandrashekaran, M., & Dornoff, R. J. (1993). Brand Retrieval, Consideration Set Composition, Consumer Choice, and the Pioneering Advantage. Journal of Consumer Research, 20(1), 62-75. Retrieved from

Kheng, L. L., Mahamad, O., Ramayah, T., & Mosahab, R. (2010). The Impact of Service Quality on Customer Loyalty: A Study of Banks in Penang, Malaysia. International Journal of Marketing Studies, 2(2), 57-66. doi:10.5539/ijms.v2n2p57

Kotler, P., Lee, N., & Corporation, E. (2005). Corporate social responsibility : doing the most good for your company and your cause. Hoboken, N.J. : Wiley.

Kumar, A. (2017). Effect of service quality on customer loyalty and the mediating role of customer satisfaction: an empirical investigation for the telecom service industry. Journal of Management Research and Analysis, 4(4), 159-166. doi:10. 18231/2394-2770.2017.0029

Lee, C. Y. (2018). Does Corporate Social Responsibility Influence Customer Loyalty in the Taiwan Insurance Sector? The role of Corporate Image and Customer Satisfaction. Journal of Promotion Management, 25(1), 1-22. doi:10.1080/1049 6491.2018.1427651

Leninkumar, V. (2017). The Relationship between Customer Satisfaction and Customer Trust on Customer Loyalty. International Journal of Academic Research in Business and Social Sciences, 7(4), 450-465. doi:10.6007/IJARBSS/v7-i4/2821

Liu, C. T., Guo, Y. M., & Lee, C. H. (2011). The effects of relationship quality and switching barriers on customer loyalty. International Journal of Information Management, 31(1), 71-79. doi:10.1016/j.ijinfomgt.2010.05.008

Liu, M. T., Wong, I. A., Rongwei, C., & Tseng, T. H. (2014). Do perceived CSR initiatives enhance customer preference and loyalty in casinos? International Journal of Contemporary Hospitality Management, 26(7), 1024-1045. doi:10.1108/ IJCHM-05-2013-0222

Mael, F., & Ashforth, B. E. (1992). Alumni and their alma mater: A partial test of the reformulated model of organizational identification. Journal of Organizational Behavior, 13(2), 103–123.

Maignan, I., Ferrell, O. C., & Hult, G. M. (1999). Corporate Citizenship: Cultural Antecedents and Business Benefits. Journal of the Academy of Marketing Research, 27(4),455-469. doi:10.1177/0092070399274005

Malik, M. E., Naeem, B., & Nasir, A. M. (2011). Hotel Service Quality and Brand Loyalty. Interdisciplinary Journal of Contemporary Research in Business, 3(8), 621-629. Retrieved from

Markovic, S., Iglesias, O., Singh, J. J., & Sierra, V. (2018). How does the Perceived Ethicality of Corporate Services Brands Influence Loyalty and Positive Word-of-Mouth? Analyzing the Roles of Empathy, Affective Commitment, and Perceived Quality. Journal of Business Ethics, 148(4), 721-740. doi:10.1007/s10551-015-2985-6

Menon, A., & Menon, A. (1997). EnviroprenMearukertiinag Sl trategy: The Emergence of Corporate Environmentalism as Market Strategy. Journal of Marketing, 61(1), 51-67. doi:10.2307/1252189

Mitra, A., & Lynch, J. G. (1995). Toward a Reconciliation of Market Power and Information Theories of Advertising Effects on Price Elasticity. Journal of Consumer Research, 21(4), 644-659. Retrieved from

Mohamud, H. A. (2018). The Impact of Corporate Social Responsibility Practice on Financial Performance of Banking Industry: Case Study: East African Commercial Banks. Journal of Economics, Management and Trade, 21(12), 1-7. Retrieved from JEMT/issue/view/4432

Moisescu, O. I. (2015). The Impact of Customers' Perception of CSR on Corporate Brand Loyalty: The Case of the Romanian Mobile Telecom Industry. Central European Business Review, 4(2), 21-30. doi:10.18267/j.cebr.123

Moisescu, O. I., & Beracs, J. (2015). Exploring the Effect of Perceived CSR on Customer Loyalty in the Dairy Products Market. Romanian Journal of Marketing, 10(2), 46-53. Retrieved from id&arhiva_id=413

Myanmar and CSR: Creating and Implementing Successful Strategy. (2014). Retrieved from

Nadeem, A., & Nasir, N. (2017). Impact of SERVQUAL Dimensions over Customer Loyalty in Hospitality Industry of Pakistan. International Journal of Humanities and Social Science, 7(4), 154-158. Retrieved from journal/index/3808

Nyarku, K. M., Kusi, L. Y., Domfeh, H. A., Ofori, H., Koomson, I., & Owusu, J. A. (2018). Moderating the Service Quality-Customer Loyalty Relation through CustomerSatisfaction, Gender and Banking Status: Evidence from Mobile Money Users in University Of Cape Coast, Ghana. International Journal of Academic Research in Business and Social Science, 8(6), 704-733. Retrieved from

Öberseder, M., Schlegelmilch, B. B., Murphy, P. E., & Gruber, V. (2014). Consumers’ Perceptions of Corporate Social Responsibility: Scale Development and Validation. Journal of Business Ethics, 124(1), 191-115. doi:10.1007/s10551-013-1787-y

Oliver, R. L. (1999). Whence Consumer Loyalty? Journal of Marketing, 63(Fundamental Issues and Directions for Marketing), 33–44.

Parasuraman, A., Zeithaml, V. A., & Berry, L. L. (1988). SERVQUAL: A Multiple Item Scale for Measuring Consumer Perceptions of Service Quality . Journal of Retailing, 64(1), 12-40. Retrieved from journal-of-retailing

Pasha, A. T., & Waleed, A. (2016). Factors Affecting Customer Loyalty in Banking Sector of Punjab, Pakistan. Paradigms: A Research Journal of Commerce, Economics, and Social Sciences, 10(2), 43-52. Retrieved from https://papers.ssrn. com/sol3/papers.cfm?abstract_id=2839333

Pe´rez, A., Martı´nez, P., & Bosque, I. R. (2013). The development of a stakeholder-based scale for measuring corporate social responsibility in the banking industry. Service Business, 7(3), 459-481. doi:10.1007/s11628-012-0171-9

Rather, R. A., & Hollebeek, L. D. (2019). Exploring and validating social identification and. International Journal of Contemporary, 31(3), 1432-1452. doi:10.1108/IJCHM-10-2017-0627

Raza, M. A., Siddiquei, A. N., Awan, H. M., & Bukhari, K. (2012). Relationship Between Service Quality, Perceived Value, Satisfaction and Revisit Intention in Hotel Industry. Interdisciplinary Journal of Conterporary Research in Business, 4(8), 788-805. Retrieved from archives.htm

Rehman, U. U., Ilyas, M., Aslam, U., & Imran, M. K. (2016). Service Quality Dimensions and Its Impact on Customer's Behavioral Intentions. Pakistan Business Review, 18(1), 120-139. doi:10.22555/ pbr.v18i1.674

Reynolds, K. E., & Beatty, S. E. (1999). Customer Benefits and Company Consequences of Customer-Salesperson Relationships in Retailing. Journal of Retailing, 75(1), 11- 32. doi:10.1016/S0022-4359(99)80002-5

Saghier, N. E. (2015). Managing Service Quality: Dimensions of service quality: a study in Egypt. International Journal of African and Asian Studies, 9, 56-63. Retrieved from

Schneider, B., & Bowen, D. E. (1999). Understanding Customer Delight and Outrage. Sloan Management Review, 41(1), 35-45. Retrieved from understanding-customer-delight-and-outrage/

Sheth, J. N. (1968). A Factor Analytical Model of Brand Loyalty. Journal of Marketing Research, 5(4), 395-404. doi:10.2307/ 3150264

Singh, G., Singh, I., & Vij, S. (2017). Antecedents and Consequences of Customer Loyalty: A Conceptual Model. International Journal of Applied Business and Economic Research, 23(2), 237-251. Retrieved from Antecedents_and_Consequences_of_Customer_Loyalty_A_Conceptual_Model

Smith, A. K., & Bolton, R. N. (2002). The effect of customers' emotional responses to service failure on their recovery effort evaluations and satisfaction judgments. Journal of the Academy of Marketing Science, 30(1), 5-23. doi:10.1177/ 030794 50094298

Srinivas, D., & Rao, N. H. (2018). Service Quality in Commercial Banks: A Study of Public Sector Banks in Warangal District. Journal of Management, 5(4), 9-17. Retrieved from https://

Stark, A. (1993). What’s the Matter with Business Ethics? Retrieved September 17, 2018, from Harvard Business Review:

Sureshchandar, G. S., Rajendran, C., & Anantharaman, R. N. (2003). Customer perceptions of service quality in the banking sector of a developing economy: a critical analysis. International Journal of Bank Marketing, 21(5), 233-242. doi:10.1108/ 02652320310488411

Turker, D. (2009). Measuring Corporate Social Responsibility: A Scale Development Study. Journal of Business Ethics, 85(4), 411-427. doi:10.1007/s10551-008-9780-6

Turker, D. (2009). How Corporate Social Responsibility Influences Organizational Commitment. Journal of Business Ethics, 89(2), 189-204. doi:10.1007/s10551-008-9993-8

Ullah, A., Raza, M., & Chander, S. (2016). Effect of Perceived Quality of Service on Customer Loyalty: A Case of Pearl Continental Hotel Services. City University Research Journal, 6(1), 81-100. Retrieved from Jan%202016%20issue.html

Welford, R. (2013). CSR is good business. Retrieved September 16, 2018, from

Westbrook, R. A. (1987). Product/ Consumption-Based Affective Responses and Postpurchase Processes. Journal of Marketing Research, 24(3), 258-270.

Zeithaml, V. A., Berry, L. L., & Parasuraman, A. (1996). The Behavioral Consequences of Service Quality. Journal of Marketing, 60(2), 31-46. doi:10.2307/1251929

Zikmund, W. G. (2010). Business research methods (8th ed.). Eagan, MN ; Mason, Ohio: Cengage Learning South-Western.