CORPORATE SOCIAL RESPONSIBILITY AND CUSTOMER LOYALTY IN TAIWAN'S INTERCITY BUS INDUSTRY

This paper proposes a new research model to examine the relationships between corporate social responsibility (CSR) and customer loyalty in intercity bus services. The model comprises five constructs and nine research hypotheses, with service quality, corporate image and customer satisfaction as mediating constructs. The nine hypotheses are tested on data collected from 349 passengers of a leading intercity bus company in Taiwan, using structural equation modeling. The study finds that CSR has a direct effect on customer loyalty and also has an indirect effect on customer loyalty through corporate image and customer satisfaction. The findings of the study provide useful insights into how intercity bus companies should reinforce their CSR activities that would enhance the company image and customer satisfaction, leading to customer loyalty.