Influence of corporate social responsibility on customer loyalty in Kenya commercial bank limited Eldoret town, Kenya

Abstract

Customer loyalty is one of the most essential consumers behaviours that firms endeavour to influence through the use of Corporate Social Responsibility (CSR) activities. Inadequate studies have been conducted to determine the degree to which CSR activities influence customer loyalty. The purpose of this study was to establish the influence of CSR activities on customer loyalty in Kenya, with specific reference to KCB Eldoret Town. The study sought to establish the following CSR activities influence on customer loyalty at KCB in Eldoret; educational activities, sports programmes, health projects and environmental activities. The study was guided by stakeholder theory. The study adopted a descriptive research design. The population for the study involved 3636 customers and 4 community champions from KCB four branches in Eldoret town. A sample size of 364 respondents will be selected to participate in the study. The customers were selected through stratified random sampling while community champions were selected through purposive sampling method. The study utilised questionnaires and interview schedule as instruments of data collection. The research instruments were checked for validity and reliability prior to field administration. The research followed all ethical guidelines pertaining research. Data collected was analysed using qualitative and quantitative methods. Quantitative data was analysed using descriptive; frequencies, percentages means and standard deviation and inferential statistics; chi square at 99% confidence level. SPSS aided in data coding, entry and analysis. Qualitative data from interviews was analysed using content analysis. The study established that CSR activities by KCB group significantly positively influenced (p<0.01) customer loyalty in Uasin Gishu Sub County. It was established that the main CSR activity that affected customer loyalty most was education and sports activities. While health and environmental had lower effect on loyalty suggesting that more needs to be done by KCB to improve its support towards health and environmental projects. The study recommends that there is need for stakeholder (community) involvement in award of scholarships, more sport teams need to be provided with KCB branded sport kits to market their products and services, the KCB group to increase its funding towards the health sector and campaigns and awareness on the green environment should be stepped up.