TNI Journal of Business Administration and Languages

Vol.7 No.2 July - December 2019

The Influence of Corporate Social Responsibility (CSR) and Service

Quality on Customer Loyalty Outcomes: The Private Banking Case
in Myanmar

Aung Chan Aye1* Phanasan Kohsuwan2

1,2International
College, Panyapiwat Institute of Management, Bangkok, Thailand
1Department of Management Studies, Monywa University of Economics, Myanmar

*Corresponding Author. E-mail Address: [email protected]

Received: 27 July 2019; Revised: 8 September 2019; Accepted: 13 September 2019

Published online: 25 December 2019

Abstract
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.

Keywords: Corporate Social Responsibility, Service Quality, Customer Loyalty, Customer Loyalty Outcomes

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I. INTRODUCTION could not identify loyal customers, could not link

The competitions among business organizations are customer loyalty to firm performance measures and
increasing continuously and changing the way these could not design successful loyalty programs by
business organizations deliver their products or services rewarding the wrong customer behavior or attitudes
to the market (Bhat, Darzi, & Parrey, 2018). As they have (Jones & Taylor, 2007). Early conceptualization of
to interact with the customer and want to establish service loyalty focused primarily on its outcome and
long-term relationship with customer, service many researchers had been identified on the
organizations are putting their focus on customer dimension of customer loyalty outcomes (Jones &
(Markovic, Iglesias, Singh, & Sierra, 2018). The financial Taylor, 2007). In this study, these customer loyalty
organizations, such as banks, are also trying to improve outcomes are used as dependent variables and the
their process by affiliating with customers and try to impacts of CSR performance and service quality on
survive and compete in the market (Bhat et al., 2018). customer loyalty outcomes are studied.
In order to survive and gain a competitive advantage in Because of unusual global climate changes, and
an intense competition, banks are now shifting their frequently occurred social events, organizations’ social
focus on the loyalty of their customers (Leninkumar, responsibilities become increasingly influential, and
2017). these organizations cannot stand for maximization of
Customer loyalty becomes a major concern in the profit alone (Hsu, 2018). In recent years, CSR gradually
banking sector as the competition becomes intense becomes a good strategic marketing tool (Lee, 2018).
(Pasha & Waleed, 2016). It plays a critical role as it can Findings of previous studies proposed that
increase sales and maintaining a relationship with organizations can turn their customers into brand
customers (Singh, Singh, & Vij, 2017). Development of ambassadors and make their customers to pay higher
customer loyalty is a common marketing objective and prices for the same product or service by being a good
therefore gains much attention in the literature (Huang, corporate citizen. In addition, studies also found that
Cheng, & Chen, 2017; Rather & Hollebeek, 2019). A loyal CSR initiatives can significantly improve loyalty
customer keeps purchasing the company’s products intention and brand preference of customers can be
constantly (Hashem & Ali, 2019). With different improved by their perception of CSR (Liu, Wong,
marketing strategies, banks are trying to gain customer Rongwei, & Tseng, 2014).
loyalty (Hasim, Mahmud, Shamsudin, Hussain, & Salem, Although the concept of CSR is globally seen as the
2015). In addition, many researchers in banking sector sustainability, social performance, or shared value,
have been focused on customer loyalty and try to Myanmar companies usually understand as making
explain the predictors for customer loyalty (Eklof, donations, especially for temples, and scholarships and
Podkorytova, & Malova, 2018; Kamat, Pilla, Pech, Mello, housing for staff of the firms (The DaNa Facility, 2018).
& Chang, 2017; Nyarku et al., 2018; Irshad, Rahim, & However, like other banks in the world, most of the
Khan, 2017). banks in Myanmar also view CSR as a mean to improve
On the other hand, because of the significance of customer loyalty, and consequently, participating in
service loyalty, nature and dimensions of this construct CSR activities (Barkemeyer & Miklian, 2019). In this
is worth to be fully understand. If not, the regards, many previous studies have been done on the
measurement of this would be the wrong one and impacts of CSR activities on loyalty intention of bank

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customers (Ajina, Japutra, Nguyen, Syed-Alwi, & Al- The objectives of this research are
Hajla, 2019; Mohamud, 2018; Igbudu, Garanti, & 1. To examine the impacts of four dimensions of
Popoola, 2018). However, relatively few researches of CSR on five dimensions of customer loyalty outcomes.
this area have been done in Myanmar context. In 2. To examine the impacts of five dimensions of
addition, in Myanmar, CSR initiatives of businesses are service quality on five dimensions of customer loyalty
very important as they can protect the environment, outcomes.
build strong and economically active communities, and
help the poorest of the population out of poverty II. LITERATURE REVIEW
(Welford, 2013). In this regards, Myanmar Centre for Different authors defined customer loyalty
Responsible Business (2014) pushshes the firms seeking differently. Customer loyalty is the extent to which
to enter Myanmar to incorporate corporate social customers feel that a service provider has consistent
responsibility (CSR) into their business model. This policies and procedures and increased service
study tries to fill these gaps by exploring the influence efficiency, and their likelihood of repurchasing
of CSR on customer loyalty specifically in banking (Schneider & Bowen, 1999). Liu and colleagues (2011)
services in Myanmar. argued that customer loyalty is the commitment made
On the other hand, due to its significance, quality by customers to rebuy a particular product or service.
has attracted the attentions of many customers and In addition, Oliver (1999) defined customer loyalty as a
researchers (Joudeh & Dandis, 2018; Hashem & Ali, genuinely held commitment to rebuy or re-patronize a
2019). Even in the area of service, it is one of the most preferred product/ service consistently in the future.
important aspect of business success (Joudeh & Dandis, Different researchers operationalized five variables
2018). In addition, as customers are now aware of the of customer loyalty outcomes of loyalty. The customer
quality of service, which leads the organizations to put loyalty outcomes the researchers operationalized are
more attention to the quality of service provided to Identification, Exclusive Consideration, Advocacy,
customers (Joudeh & Dandis, 2018), banks should Strength of Preference, and Share of Wallet. The
please all types of customers who are from various definitions of these variables and corresponding
social groups (Srinivas & Rao, 2918). In doing so, literatures are shown in TABLE I.
competitive pressures also push them to focus on the
customers’ perception of quality and gain customer
loyalty (Kamat et al., 2017). Many researchers have
been focused on the impact of service quality on
customer loyalty in the banking sector (Alafeshat &
Alola, 2018; Eklof et al., 2018; Kamat et al., 2017).
However, only a limited number of studies has been
done in Myanmar banking context. In order to fill this
gap, this study tries to explain the impact of service
quality on customer loyalty. Hence, in this study, CSR
and service quality are used as the predictors for
customer loyalty in the banking sector of Myanmar.

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TABLE I: Definitions of Customer Loyalty Outcomes Variables 2001; Oliver, 1999). The proportion of a customer’s
Customer Definitions purchase from a company in a specific category is an
Loyalty important determinant of loyalty index (Day, 1969). In
Outcomes
this study, these five variables of customer loyalty
Identification Customers who use the services get the
sense of ownership over the service of the outcomes are treated as dependent variables and the
firm that they received (Gabbott & Hogg, impact of CSR dimensions and service quality
1994; Bhattacharya, Rao, & Glynn, 1995; dimensions on these customer loyalty outcomes are
Butcher, Sparks, & O'Callaghan, 2001). tested.
Exclusive The extent to which the customer Corporate social activities are initiated by a
consideration considers the service provider as his or her
company to support causes and to reach commitments
only choice when using financial service
(Dwyer, Schurr, & Oh, 1987; Jones & Taylor, to corporate social responsibility (Kotler & Lee, 2005).
2007). According to the World Bank, CSR is the commitment
Advocacy Consumer’s willingness to recommend a of the business which contributes to economics
(Word-of- service provider to other consumers (Dick developments (Chung, Yu, Choi, & Shin, 2015). Turker
Mouth) & Basu, 1994; Westbrook, 1987). (2009a) defined CSR as corporate behaviors that have a
Strength of Customers have a strong preference for a positive effect on stakeholders rather than economic
Preference service provider in comparing to other
interest. This definition of CSR is closely connected with
service providers and are not easy for
competitors to persuade them (Dick & the concept of ‘stakeholder’ (Turker, 2009a) and
Basu, 1994; Butcher et al., 2001; Oliver, stakeholder theories influence the concerns of CSR
1999; Day, 1969). (Henderson, 2001). Firms’ stakeholder theory is
Share of Wallet Customer’s relative desire to make all of presumably the most influential popular theory in the
their purchases in a specific category with CSR area (Stark, 1993). Following the stakeholder
the same service provider (Reynolds &
perspective of CSR theory, Turker (2009a) and Turker
Beatty, 1999; Day, 1969).
(2009b) specified the responsibilities of corporations on
four kinds of stakeholder – responsibilities to, Social
Many studies have been done in the area of
and Non-social stakeholders, Employees, Customers,
customer loyalty outcomes. Building a relationship
and to Government. In this study, these CSR dimensions
between customer and service provider can create a
are used as research variables determining CSR
sense of belongingness (Gabbott & Hogg, 1994;
activities of the firm and their impact on customer
Bhattacharya, Rao, & Glynn, 1995). Jones and Taylor
loyalty outcomes.
(2007) reviewed the literature in the area of marketing
Many researchers have been studied on the
and found that exclusive consideration is the outcomes
influence of each dimension of CSR on customer
that loyal customers have on the business. Loyal
loyalty. Menon and Menon (1997) argued that, in high-
customers are motivated to hand over good word-of-
impact industries, environmentally mindful customers
mouth (Advocacy) communication to other consumers
reward suppliers’ environmental orientation with
(Dick & Basu, 1994). Many researchers propose that
increased commitment. On the other hand, customer
customer preference is central to a loyalty
orientation of CSR influence on buying decision directly
conceptualization (Dick & Basu, 1994; Butcher et al.,
(Pe´rez, Martı´nez, & Bosque, 2013). Moreover, scholars

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have also argued that customers’ positive responses to customer loyalty outcomes were studied. According to
CSR perceptions are significant when other stakeholder the above discussions lists of hypotheses are laid down
concerns are included in this construct, including good as follows and conceptual framework is presented in
labor practices among others (Feldman & Parraga, Fig. 1.
2013). Moisescu (2015) found that customers’ H1a: Social and Non-social component of CSR has a
perception of the organization’s responsibilities toward positive influence on Identification.
public authorities influences on loyalty. H1b: Social and Non-social component of CSR has a
On the other hand, as the competition becomes positive influence on Exclusive Consideration.
intense, service quality becomes a very important H1c: Social and Non-social component of CSR has a
marketing tool for companies. Customers who positive influence on Advocacy.
experienced a quality service tend to share their H1d: Social and Non-social component of CSR has a
experience with others leading to an expanded positive influence on Strength of Preference.
customer base and that such customers tend to H1e: Social and Non-social component of CSR has a
become loyal customers (Joudeh & Dandis, 2018). positive influence on Share of Wallet.
However, customers who experienced a bad service H2a: Employee component of CSR has a positive
tend to share that experience with others and this leads influence on Identification.
to reduce purchase and customer base (Smith & H2b: Employee component of CSR has a positive
Bolton, 2002). Service quality is the overall assessment influence on Exclusive Consideration.
of service by the customers (Eshghi, Roy, & Ganguli, H2c: Employee component of CSR has a positive
2008), or the degree to which a service product meets influence on Advocacy.
the needs or expectations of customers (Asubonteng, H2d: Employee component of CSR has a positive
McCleary, & Swan, 1996). This study used service quality influence on Strength of Preference.
variables of the SERVQUAL model, Tangibles, Reliability, H2e: Employee component of CSR has a positive
Responsiveness, Assurance, and Empathy, which were influence on Share of Wallet.
developed by Parasuraman, Zeithaml, and Berry (1988), H3a: Customer component of CSR has a positive
in assessing its impact on customer loyalty. influence on Identification.
Many studies had been made on the dimensions of H3b: Customer component of CSR has a positive
service quality’s influence on customer loyalty (Malik, influence on Exclusive Consideration.
Naeem, & Nasir, 2011; Raza, Siddiquei, Awan, & Bukhari, H3c: Customer component of CSR has a positive
2012; Nadeem & Nasir, 2017; Ullah, Raza, & Chander, influence on Advocacy.
2016; Rehman, Ilyas, Aslam, & Imran, 2016). Malik and H3d: Customer component of CSR has a positive
colleagues (2011) studied the impact of each influence on Strength of Preference.
dimension of the SERVQUAL model on loyalty in the H3e: Customer component of CSR has a positive
hotel industry. Raza and colleagues (2012) found that influence on Share of Wallet.
service quality matters a lot in developing customer H4a: Government component of CSR has a positive
loyalty. Nadeem and Nasir (2017) found that SERVQUAL influence on Identification.
dimensions would increase customer loyalty. In this H4b: Government component of CSR has a positive
study, the dimensions of service quality’s impacts on influence on Exclusive Consideration.

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H4c: Government component of CSR has a positive H8b: Assurance dimension of service quality has a
influence on Advocacy. positive influence on Exclusive Consideration.
H4d: Government component of CSR has a positive H8c: Assurance dimension of service quality has a
influence on Strength of Preference. positive influence on Advocacy.
H4e: Government component of CSR has a positive H8d: Assurance dimension of service quality has a
influence on Share of Wallet. positive influence on Strength of Preference.
H5a: Tangibles dimension of service quality has a H8e: Assurance dimension of service quality has a
positive influence on Identification. positive influence on Share of Wallet.
H5b: Tangibles dimension of service quality has a H9a: Empathy dimension of service quality has a
positive influence on Exclusive Consideration. positive influence on Identification.
H5c: Tangibles dimension of service quality has a H9b: Empathy dimension of service quality has a
positive influence on Advocacy. positive influence on Exclusive Consideration.
H5d: Tangibles dimension of service quality has a H9c: Empathy dimension of service quality has a
positive influence on Strength of Preference. positive influence on Advocacy.
H5e: Tangibles dimension of service quality has a H9d: Empathy dimension of service quality has a
positive influence on Share of Wallet. positive influence on Strength of Preference.
H6a: Reliability dimension of service quality has a H9e: Empathy dimension of service quality has a
positive influence on Identification. positive influence on Share of Wallet.
H6b: Reliability dimension of service quality has a
positive influence on Exclusive Consideration. CSR
H6c: Reliability dimension of service quality has a Dimensions
Customer Loyalty
positive influence on Advocacy.
Outcomes
H6d: Reliability dimension of service quality has a Service
positive influence on Strength of Preference. Quality
H6e: Reliability dimension of service quality has a Dimensions
positive influence on Share of Wallet.
Fig. 1 Conceptual Framework
H7a: Responsiveness dimension of service quality has
a positive influence on Identification.
III. RESEARCH METHODOLOGY
H7b: Responsiveness dimension of service quality
has a positive influence on Exclusive Consideration. Exploratory research was used in the study. A draft
H7c: Responsiveness dimension of service quality has questionnaire was prepared based on the previous
a positive influence on Advocacy. literature, and this questionnaire was modified
H7d: Responsiveness dimension of service quality according to the results of Item Objective Congruence
has a positive influence on Strength of Preference. (IOC) test. For the pilot study, this modified
H7e: Responsiveness dimension of service quality questionnaire was then translated from English to
has a positive influence on Share of Wallet. Myanmar using back-translation technique and
H8a: Assurance dimension of service quality has a surveyed 41 respondents. Reliability Analysis was used
positive influence on Identification. as preliminary analysis for the pilot study. Based on the

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results of the pilot study, the questionnaire was refined IV. RESULTS AND DISCUSSIONS
for the main data collection. For the purpose of the A. Analysis Results
main study, 650 questionnaires were distributed to In the main study, the values of Cronbach’s Alpha
private bank users in Mandalay, Myanmar and out of of all the constructs were above 0.7 ranging from 0.709
which 547 questionnaires were returned. Therefore, the to 0.858 considered as very good reliability (Zikmund,
response rate was 84.15% and after eliminating Babin, Carr, & Griffin, 2010). Hence, scale items for all
incomplete responses and responses with outliers, 459 the variables used in the model were acceptable in
qualified responses were used for the study. In the terms of internal consistency.
main study, after analyzing scale reliability with The independent variables were four dimensions of
Cronbach’s Alpha, Confirmatory Factor Analysis (CFA) CSR, and five dimensions of service quality. The
and Structural Equation Model (SEM) were used to dependent variables were five dimensions of customer
analyze the scale validity and hypotheses specified in loyalty outcomes. In this study, customer loyalty was a
the model. second order variable. The summary of CFA and SEM
model fit indexes along with fit criteria based on
A. Research Measurement previous researchers are given in TABLE II.
In this study, five variables of customer loyalty
outcomes were used as dependent variables, and four TABLE II: Summary of Model Fit Indexes for CFA and SEM
dimensions of CSR and five dimensions of service Construct CMIN/ GFI CFI RMSEA
quality were used as independent variables. Scales DF
items for all of these variables were subject to IOC test CSR 1.928 0.951 0.949 0.045
and refined according to experts’ suggestions. For CSR Service 1.943 0.953 0.968 0.045
Quality
dimensions, scale items were adapted from the work
Customer 2.214 0.95 0.975 0.051
of Maignan, Ferrell, and Hult (1999), Turker (2009a), and Loyalty
Öberseder, Schlegelmilch, Murphy, and Gruber (2014). Outcomes
For service quality dimensions, scale items were based SEM 3.072 0.831 0.866 0.067
on the work of Parasuraman et al. (1988), and Saghier Criteria <3 >0.9 >0.9 <0.08
(2015). Scale items for customer loyalty outcomes were References Byrne Hair, Black, Hu and Hu and
(2016) Babin, and Bentler Bentler
adapted from the work of Sheth (1968), Hauser and
Anderson (1999) (1999)
Wernerfelt (1989), Mael and Ashforth (1992), Kardes, (2014)
Kalyanaram, Chandrashekaran, and Dornoff (1993), n=459
Mitra and Lynch (1995), Zeithaml, Berry, and
Parasuraman (1996), Reynolds and Beatty (1999), As shown in Table 1, during the process of CFA, fix
Ganesh, Arnold, and Reynolds (2000), and Baumann, indexes were matched to the model fit criteria referred
Elliott, and Hamin (2011). The scale items for all the by previous researchers. For the SEM, the value of GFI
constructs were measured by using a five-point Likert and CFI did not exceed 0.9. However, they still meet
scale. the requirement suggested by Baumgartner and
Homburg, (1996), which is 0.08. Moreover, the alue of
CMIN/DF is slightly above 3 and very close to the

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threshold value. The value of RMSEA statisfied the H5e -2.456 -0.656 0.512 Not Supported
requirement of previous researchers’ suggestions. Once H6a 3.888 0.747 0.455 Not Supported
CFA for each dependent and independent constructs H6b 8.61 0.917 0.359 Not Supported
and SEM for the overall model were done, the H6c 8.672 0.922 0.357 Not Supported
hypothesis testing results generated from the SEM H6d 9.584 0.932 0.351 Not Supported
process are presented in TABLE III. The measurement H6e 8.902 0.935 0.35 Not Supported
model for the study is presented in Fig. 2. H7a -2.124 -0.747 0.455 Not Supported
H7b -4.456 -0.829 0.407 Not Supported
TABLE III: Hypothesis Testing Results H7c -4.777 -0.885 0.376 Not Supported
Hypot β CR Sig. (P) Evidence H7d -5.364 -0.905 0.365 Not Supported
hesis H7e -4.606 -0.839 0.402 Not Supported
H1a 0.298 3.63 *** Supported H8a -0.751 -0.245 0.806 Not Supported
H1b 0.154 2.196 0.028 Supported H8b -4.27 -0.805 0.421 Not Supported
*** = p<0.001 H8c -4.085 -0.77 0.441 Not Supported
TABLE III: HYPOTHESIS TESTING RESULTS (CONTINUED)
H8d -4.537 -0.781 0.435 Not Supported
Hypot β CR Sig. (P) Evidence
H8e -4.603 -0.852 0.394 Not Supported
hesis
H9a 3.669 1.119 0.263 Not Supported
H1c 0.084 1.322 0.186 Not Supported
H1d 0.036 0.58 0.562 Not Supported H9b 6.118 0.982 0.326 Not Supported
H1e 0.126 1.897 0.058 Not Supported H9c 6.143 0.983 0.326 Not Supported
H2a -0.001 -0.029 0.976 Not Supported H9d 6.663 0.972 0.331 Not Supported
H2b 0 0 1 Not Supported H9e 6.058 0.952 0.341 Not Supported
H2c -0.043 -1.019 0.308 Not Supported *** = p<0.001
H2d -0.049 -1.15 0.25 Not Supported
H2e -0.05 -1.169 0.242 Not Supported
H3a 0.105 1.468 0.142 Not Supported
H3b 0.163 2.153 0.031 Supported
H3c 0.19 2.532 0.011 Supported
H3d 0.256 3.104 0.002 Supported
H3e 0.281 3.296 *** Supported
H4a -0.006 -0.107 0.914 Not Supported
H4b 0.115 1.908 0.056 Not Supported
H4c 0.081 1.43 0.153 Not Supported
H4d 0.092 1.599 0.11 Not Supported
H4e -0.101 -1.74 0.082 Not Supported
H5a -2.594 -1.103 0.27 Not Supported
H5b -2.762 -0.735 0.462 Not Supported
H5c -2.677 -0.712 0.477 Not Supported
H5d -2.667 -0.653 0.514 Not Supported

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Fig. 2 Measurement Model for the Study

B. Discussion (Kheng, Mahamad, Ramayah, & Mosahab, 2010).

This study investigated the impact of CSR According to the results of the hypothesis testing,
dimensions and service quality dimensions on Tangibles dimensions of service quality have no
customer loyalty outcomes. This study found that CSR positive influence on any dimensions of customer
to Social and Non-social Stakeholder has positive loyalty outcomes. From the perspective of the private
influence on Identification and Exclusive Consideration. bank users in Mandalay, Myanmar, Tangibles
In addition, this study also found that CSR to Customers dimensions of a bank’s service cannot influence the
positively influence on Exclusive Consideration, loyalty of its customers. This finding was aligned with
Advocacy, Strength of Preference, and Share of Wallet the previous studies (Kheng et al., 2010; Sureshchandar,
dimensions of customer loyalty outcomes. Although Rajendran, & Anantharaman, 2003). In addition, the
the standardized regression weight (β) were low, these current study found that reliability dimension of service
variables still have a direct positive impact on customer quality has no positive influence on all dimensions of
loyalty. This finding was aligned with the findings of customer loyalty outcomes of private bank users in
Menon, and Menon (1997), Pe´rez et al. (2013), and Mandalay, Myanmar. This finding was aligned with the
Moisescu, and Beracs (2015). Other dimensions of CSR finding of Kumar (2017). For the third variable of service
such as CSR to Employees, and CSR to Government do quality, the study found that the relationship between
not found to have significant impact on any dimensions the responsiveness dimension of service quality and
of customer loyalty outcomes. customer loyalty outcome is insignificant. This is aligned
Due to the emergence of self-service terminals, and with findings of Kheng et al. (2010), Jun and Cai (2001),
advance in information technology, tangibles lost its Diaz and Ruiz (2002), and Abdullah and Hilmi (2014). In
importance as a measurement for customer loyalty addition, the results indicate that the relationship

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between the assurance dimension of service quality B. Managerial Implications

and customer loyalty outcomes was insignificant. This The results of the study can be applied in a real
result was aligned with the findings of Abdullah and business situation. The results show that CSR to Social
Hilmi (2014). The last dimension of service quaity, and Non-social Stakeholders, one of the dimensions of
Empathy, also have no positive significant effect on any CSR, positively relate to the Identification and Exclusive
dimensions of customer loyalty outcomes. This finding Consideration, which are the dimensions of customer
was aligned with the finding of Ganić, Hodović, and loyalty outcomes. This can be implied that, although
Kalajdžić, (2018), which did not find the significant direct the degree of their influence was quite low, banks
relationship between sevice quality dimmensions and should take care of activities that are concerned with
customer loyalty. the protection of the natural environment, well-being
of society, generation, and back for the non-
V. CONCLUSIONS governmental organizations (NGOs). This can result in
A. Theoretical Contribution the feeling of ownership that the customer holds over
This study made contributions to business research the service and the customer consider the bank as his
in a number of ways. Most significant was the or her only choice whenever he or she need service
development of a theoretical model or framework from a bank. In addition, CSR to Customer, which is one
which extended previous theories and satisfied all of the dimensions of CSR, also positively influence on
conditions with the desired level of fit to the data. In Exclusive Consideration, Advocacy, Strength of
addition, the current framework, which was the Preference, which are the dimensions of customer
combination CSR, service quality, and customer loyalty, loyalty outcomes. Therefore, it can be implied that by
was fixed with the banking sector, and Myanmar doing CSR targeting toward its customers, banks can
context. become their customers’ only choice in banking
Fundamentally, from the theoretical perspective, service, get good word-of-mouth communication with
the current study used three marketing theories and strong preference from customers, and occupied all the
their causal relationships as a basic framework to gain purchases of banking service made by its customers.
a better understanding of the impact of CSR
performance and service quality on customer loyalty C. Limitations and Recommendations for Future
outcomes from the perspective of the customer. In Studies
measuring CSR, Turker’s stakeholder approach to CSR, This study investigated the impact of CSR
which is widely used by the various researcher, had performance and service quality on customer loyalty
been used as an independent construct. In addition, in and the impact of customer loyalty on customer
measuring service quality, widely used variables of loyalty outcomes. However, potential limitations may
service quality had also been used as an independent still exist. Firstly, the sample used to test the model
construct. As a dependent construct for the research was collected from the users of a major bank in
model, five dimensions of customer loyalty outcomes Myanmar. In addition, all the respondents are the users
had been used. All the constructs in the model were of private banks in Mandalay, Myanmar. The theoretical
tested with statistical methods and validated in limitation of the study is that CSR and service quality
accordance with the previous studies. are not the only predictor of customer loyalty.

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Based on the limitations of the research, there are Retrieved from http://www.ajes.ro/volume-4-issue-3-
several rooms that future studies can fill up. According 2018/
Asubonteng, P., McCleary, K. J., & Swan, J. E. (1996). SERVQUAL
to the research limitation, future studies might consider
revisited: a critical review of service quality. The
enlarging the scope to conduct from different service Journal of Service Marketing, 10(6), 62-81. doi:
business industries and different geographical region. 10.1108/0887604961014 8602
Future studies should extend the predictors of Barkemeyer, R., & Miklian, J. (2019). Responsible Business in
customer loyalty by reviewing other previous studies. Fragile Contexts: Comparing Perceptions from Domestic
and Foreign Firms in Myanmar. Sustainability, 11(3), 1-
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D. Conclusion
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