The Influence of Corporate Social Responsibility (CSR) and Service Quality on Customer Loyalty Through Customer Satisfaction as a Mediating Variable among Bank BRI Customers in Semarang City

Abstract

Customer loyalty is important for the sustainability of banks because loyal customers keep using a bank’s services, broaden their use of its products, and recommend it to others. This study analyzes the effects of corporate social responsibility (CSR) and service quality on customer loyalty, with customer satisfaction as a mediating variable, among customers of Bank Rakyat Indonesia (BRI) in Semarang City. Data were collected through an online questionnaire from 180 purposively selected respondents and analyzed with partial least squares structural equation modeling (PLS-SEM) in SmartPLS. CSR (β = 0.212) and service quality (β = 0.696) have positive effects on customer satisfaction, and CSR (β = 0.300) and customer satisfaction (β = 0.334) have positive effects on customer loyalty, whereas the direct effect of service quality on customer loyalty is not significant (p = 0.074). Customer satisfaction partially mediates the effect of CSR and fully mediates the effect of service quality on customer loyalty. The model explains 73.2% of the variance in customer satisfaction and 56.3% of the variance in customer loyalty. BRI is advised to continue strengthening its CSR programs and to improve service quality consistently, because both build loyalty mainly by increasing customer satisfaction.