Role of CSR towards Customer Loyalty: An Investigation of the Retail Apparel Brands of Karachi

Abstract

The study aims to determine the effect of corporate social responsibility (CSR) on customer satisfaction (CS), corporate reputation (CR) and customer trust (CT) for improving customer loyalty (CL) in the apparel industry. 299 responses were acquired from the sample population, comprising consumers of Karachi apparel brands. A nonprobability convenience sampling technique was utilized to select participants. Additionally, the study collected data through the survey method, and PLS-SEM was used to test hypotheses. The findings showed that CSR significantly affects CR, CS and CT. Moreover, CR and CS have a positive insignificant effect on CT, whereas CT has a positive significant effect on CL. When firms effectively inform their customers about their CSR initiatives, customers may feel trusted by them. This trust may lead to stronger customer relationships, recurring business, and positive word-of-mouth recommendations. Furthermore, a strong corporate reputation attracts new customers while retaining existing ones, essential for long-term success.