Consumer Identification and Trust

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    International Journal of Hospitality Management 35 (2013) 8999

    Contents lists available at ScienceDirect

    InternationalJournal ofHospitality Management

    j ournal homepage: www.elsevier .com/ locate / i jhosman

    CSRand customer loyalty: The roles oftrust, customer identificationwith the company and satisfaction

    Patricia Martnez, Ignacio Rodrguez del Bosque 1

    University of Cantabria, Faculty of Economics, Avenidade los Castros s/n, 39005 Santander, Cantabria, Spain

    a r t i c l e i n f o

    Keywords:

    Corporate social responsibility

    Customer trustCustomer identification

    Customer satisfaction

    Customer loyalty

    Hospitality industry

    a b s t r a c t

    Corporate social responsibility (CSR) has become a crucial construct in hospitality companies. One of

    the main reasons is due to the idea that CSR influence consumer loyalty. This paper presents a model

    ofinfluence ofCSRon hotel customer loyalty by simultaneously including trust, customer identification

    with the company and satisfaction as mediators by showing the direct and indirect effects among these

    constructs. In the proposed model, loyalty is indirectly affected by perceived CSR, via the mediation of

    trust, identification and satisfaction. Empirical testing using a surveyofSpanish hotel consumers confirms

    most ofour hypothesized effects except the effect ofcustomer trust on customer identification with the

    company. Finally, managerial implications and limitations ofour findings are discussed.

    2013 Elsevier Ltd. All rights reserved.

    1. Introduction

    The hospitality industry is one of the worlds fastest grow-

    ing sectors playing an essential role in tourism, since tourists are

    undertaking travel to increasingly distant places and locations, inincreasing numbers (De Grosbois, 2012). This sector is frequently

    viewed as a source of economic, environmental, social and cul-

    tural benefits through its support of job creation, improvements

    to infrastructures and cultural understanding (Bohdanowicz and

    Zientara, 2009). Nevertheless, in satisfying the growing needs of

    hotel guests, there are many negative impacts such as air andnoise

    pollution,biodiversity loss, waste generation,non-compliancewith

    fundamental laborstandards, and the growth of prostitution (Chan,

    2011). Therefore,a corporatesocial responsibility(CSR) orientation

    is a strategy for companies in the hospitality sector to mini-

    mize the negative impacts of their activities on natural, cultural

    and social environments (Chan, 2011). CSR means that organiza-

    tions take on responsibility toward others in society, not only on

    their shareholders and customers (Holloway, 2004). Nowadays,

    customers are vulnerable to diverse problems they are dealing

    with, such as crisis in values, natural disasters, climate change

    and enormous differences among regions and financial crisis in

    developed countries. These are issues for hospitality companies to

    play a constructive role in society by introducing CSR into firms

    strategy to achieve customer loyalty and sustainable competitive

    Corresponding author. Tel.: +34 942 20 16 61.

    E-mail addresses: [email protected] (P. Martnez), [email protected]

    (I. Rodrguez del Bosque).1 Tel.: +34 942 2016 61.

    advantages (Nemec, 2010). As a result, a growing number of

    hospitality companies have implemented a number of socially

    responsible practices to show their commitment toward this con-

    cept. Meli Hotels International, Marriott International, NH Hotels

    and Novotel Hotels have all implemented numerous CSR ini-tiatives including energy and water conservation, recycling and

    community involvement (Goeldner and Brent Ritchie, 2006). For

    example, Meli Hotels International cooperates with TUI Travel

    the leader travel group in Europe in the distribution of a spe-

    cific guide in which they educates clients on souvenir purchasing.

    Similarly, NH Hotels created the Ecomeeting concept, in which

    events, congresses and conventions are organized based on sus-

    tainability requirements ensuring a respectful use of energetic

    resources, using products with low environmental footprint and

    fair trade.

    One of the main reasons for this growing interest is because

    of the idea that CSR influence consumer loyalty at a time when

    hospitality companies are facing an extremely business compet-

    itive environment and ever growing customer expectations (Han

    et al., 2011). Many hospitality firms are having difficulty increas-

    ing their market share because of rising international competition,

    slower growth rates, decreased population growth, and oversup-

    plied and mature markets (So et al., 2013). Thus, firms within this

    sector have become more interested in looking after and retain-

    ing their customers because the advantages seem obvious. When

    customers become loyal, they buy more, are willing to pay more

    andrecommendmore (Harris and Goode, 2004). However, creation

    of loyalty among customers represents a challenge for hospitality

    business since switching hospitality supplier can represent a risk

    because it is difficult to estimate the quality of the service before it

    is consumed (Nemec, 2010).

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    Therefore, in their search for increasing their loyal customers,

    firms try their best to develop long-term relationship with cus-

    tomers, fulfilling their various needs and wants (Han and Back,

    2008). Withthis increased interest in customer relationships, it has

    become increasingly obvious that hospitality theory and practice

    must include customer loyalty as a central construct in relation-

    ships and must also incorporate its antecedents. Extant literature

    presentsseveral perspectives on thistopic (Harris andGoode, 2004;

    He et al., 2012). Previous studies largely focus on the examina-

    tion of key marketing concepts that serve as customer loyalty

    antecedents such as customer satisfaction (Lee et al., 2009) and

    customer trust (Chaudhuri and Holbrook, 2001). Harris and Goode

    (2004) state that services researchers continue to devote consid-

    erable attention to these social exchange variables as attempts to

    understand the dynamics of service. In the last years an integrated

    approach is rising that incorporates these constructs into holistic

    conceptualizations (He et al., 2012). To date the literature devotes

    insufficientattention to social identificationantecedents (e.g., iden-

    tification) to customer loyalty and has not yet incorporated them

    into established frameworks. Recent studies propose that a social

    identity perspective could be useful to explore the relationship

    between companies and their stakeholders (Bhattacharya and Sen,

    2003). Academic literature provides evidence on the effects of cus-

    tomer identification with the company on customer loyalty (Heand Li, 2011; Marin et al., 2009; Perez et al., 2012). Customer iden-

    tification with the company (C-C identification) is defined as a

    cognitive state of consumer connection and closeness to a com-

    pany(Duttonet al., 1994), brought about by subjective comparison

    of the organizational entity and the consumers own identity. Anal-

    ysis of C-C identification can be used to provide a more effective

    explanation for the influence of CSR on customer loyalty, due to

    the fact that a subject can satisfy self-definitional needs through

    his/her relationship with a socially responsible company (Sen and

    Bhattacharya, 2001). However, limited research integrates social

    identity variables (e.g., identification) with social exchange vari-

    ables (e.g., trust and satisfaction) in explaining customer loyalty

    (Heetal.,2012). Since bothsocialidentification processes(Stetsand

    Burke, 2000;Tajfel and Turner, 1979) and interpretations of servicedynamics (Harris and Goode, 2004) contribute to consumers

    psychological processes, including both courses into a broader

    conceptualization of customer loyalty development seems logi-

    cal. This research offers an integrated framework to overcome this

    gap.

    Furthermore, fairly recently the CSR notion has been used in

    studies incorporating the customer loyalty model. In this sense,

    recent studies empirically demonstrate a positive relationship

    between CSR and customer loyalty (Garca de los Salmones et al.,

    2005;He and Li,2011; Marin et al., 2009;Perezet al., 2012). Most of

    these studies propose that CSR directly generates more customer

    loyalty, without requiring the intervention of mediating variables.

    According to these studies, CSR is such a significant attribute of

    corporate image that it is able to mechanically attract the con-sumer. However, due to the inherent complexity of the construct,

    it is doubtful that CSR will be taken into account mechanically

    by consumers when making consumption decisions, or deciding

    which company to strengthen relations with (Bhattacharya and

    Sen, 2003). This study considers that CSR influence on customer

    loyalty is explained better by including in the analysis the role

    played by social identity variables (e.g., identification) and social

    exchange variables (e.g., trust and satisfaction). Although several

    studies have attempted to link CSR to consumer responses, there

    is still a limited understanding of the different paths that con-

    nect CSR to loyalty (Marin et al., 2009). In fact, little research

    has provided a conceptual model to understand how CSR influ-

    ences hotel customer loyalty formation process (Mason et al.,

    2006).

    The present research makes a number of contributions to the

    hospitality literature. First, it test and demonstrates that CSR plays

    a significant indirect role in the development of hotel customer

    loyalty. Second, this research confirms the pivotal role of C-C iden-

    tification in theprocessof CSR to customerloyaltydevelopmentand

    stresses the mediating effects of customer trust and satisfaction on

    the effects of CSR on customer loyalty. By doing so, this research

    expands previous studies that suggest that social identification

    perspective of customer loyalty can integrate with other perspec-

    tives such as the conceptualization of service dynamics (Harris

    and Goode, 2004) through incorporating the mediation effects of

    social exchange variables in explaining customer loyalty (He et al.,

    2012). To the best of our knowledge, previous empirical studies in

    the hospitality sector did not incorporate different perspectives of

    customer loyalty into a more general framework by stressing the

    mediating roles of customer identification, trust and satisfaction.

    Consequently, our research distinguishes itself by expanding prior

    research on social identity perspective of customer loyalty through

    incorporating the mediation effects of social exchange constructs

    and social identity variables along the path from CSR to customer

    loyalty.

    2. Researchmodel and development of hypotheses

    2.1. Customer loyalty and its antecedents

    Within the hospitality context, there is intense interest in

    identifying those factors that determine guest loyalty to hotels

    because it is generally believed that loyal customers lead to greater

    profitability. Most hotels offer reward schemes, routinely track

    their guests likes and dislikes, and give special deals for repeat

    customers (Mason et al., 2006). In this context, the consumer

    is the most limited resource for the company and their loy-

    alty directly affects its profits (Edvardsson et al., 2000). There is

    considerable studies on the drivers of loyalty in hospitality busi-

    nesses (Mattila, 2006; So et al., 2013; Tanford et al., 2012), but

    none that has investigated the loyalty determinants presentedhere within a single study. To the best of our knowledge, pre-

    vious empirical studies in the hospitality sector did not expand

    prior research on social identity perspective of customer loyalty

    through incorporating the mediation effects of trust and satisfac-

    tion as social exchange constructs, and customer identification as

    a social identity variable along the path from CSR to customer loy-

    alty.

    Considerable debate exists in the academic literature regarding

    thedefinition anddimensionality of consumerloyalty. Oliver (1997,

    p. 392) defines this construct as adeeply heldcommitmenttore-buy

    or re-patronizea preferredproductor serviceconsistentlyin thefuture,

    thereby causing repetitive same-brand or samebrand-set purchasing,

    despite situational influences andmarketingefforts having the poten-

    tialto cause switchingbehavior. Similar definitions for the constructexist butmuch of the original research on customer loyalty defined

    it in behavioral and attitudinal terms (Han et al., 2011). Precisely,

    a general approach to analyze customer loyalty is to differenti-

    ate between consumers attitudinal loyalty and behavioral loyalty

    (Chaudhuri and Holbrook, 2001; Han et al., 2011). The behavioral

    component of customer loyalty is related to repeated transactions

    made from the consumer in a specific period of time. However,

    repurchase behavior can be due to satisfaction or just to a lack of

    alternatives, or as a reason of convenience or habit. Therefore, it is

    thought that this approach can lead to identifying as loyalty some

    behaviors that have been usually described as spurious loyalty or

    even no loyalty, which happen when the repurchase takes place

    even if the organization has a negative image in the market (Dick

    and Basu, 1994, p. 100).

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    A broader and more complete visionof loyalty, supportedin this

    study, refers to consumerloyaltyas a stepfurther.Therefore, loyalty

    is analyzed in terms of consumer preferences and intentions (atti-

    tudinalloyalty). Attitudinalloyaltymeans thata positive evaluation

    ofthe company is made together with the existence ofan emotional

    link between the consumer and the organization that generates a

    real loyalty or, at least, a potential loyalty. This type is linked to

    active loyalty, whichnot only means repurchase but also a positive

    word of mouth. To this end, some hospitalityresearchers evaluated

    customer loyalty solely employing an attitudinal approach (Han

    and Back, 2008). However, a customers favorable attitude toward

    a particular product or brand may not assure repeat patronage or

    repurchase frequency (Dick and Basu, 1994; Oliver, 1997). Thus,

    hospitality researchers insist and agree that measuringboth attitu-

    dinal and behavioral aspects is essential to assess customer loyalty

    precisely (Han et al., 2011).

    To conclude, below are the antecedents of loyalty that act as

    study variables in this research. As stated by Mason et al. (2006)

    there is no general agreement on what creates loyalty to a hotel.

    Although customer loyalty has been linked to CSR both theoreti-

    cally (Sen and Bhattacharya, 2001) and empirically (Garca de los

    Salmones et al., 2005; Marin et al., 2009; Perez et al., 2012) there

    is still a limited comprehension of the alternative paths that link

    loyalty to CSR. A sequential approach, where the mediation of cer-tain constructs explains the different ways that CSR activities and

    behavioral outcomes are linked, willbe helpful for hospitality man-

    agers in order to implement and develop actions that enhance

    consumers loyalty in this specific sector.

    2.1.1. Consumer trust

    Consumer trust is defined as a belief that the product or service

    provider can be relied on to behave insucha manner that the long-

    term interests of theconsumers will be served(Crosbyet al., 1990).

    Academicliterature identifiestrust as a prerequisite for thecreation

    and preservation of long-term relationships between the company

    and consumers (Morgan and Hunt, 1994), especially in the context

    of services markets. In this sense, Reichheld and Schefter (2000, p.

    107) observe that to gain the loyalty of customers, you must first

    gain their trust. The importance of trust in explaining customer

    loyalty is supported by authors such as Chaudhuri and Holbrook

    (2001), Sirdeshmukh et al. (2002) and Ball et al. (2004). Relation-

    ship marketing theory has been well supported in the marketing

    empirical literature and trust has been empirically demonstrated

    to be an importantmediator between corporate activities and con-

    sumer loyalty (Ball et al., 2004; Chaudhuri and Holbrook, 2001).

    Moreover, trust is considered key to building relationships within

    thehospitality industry.A number of researchers have documented

    theroleoftrustinloyaltytohotels(Hikkerova,2011;Soetal.,2013 ).

    In those studies, trust has been shown to be a strong determinant

    of loyalty.

    Trust is conceived as having two components: (1) performance

    or credibility trust and (2) benevolence trust (Sirdeshmukh et al.,2002). Within the hotel sector, competence trust suggests that the

    customer believes in the ability, infrastructures of the hotel, skills

    and knowledge of the hotel employees, and capability of the hotel

    to provide the expected information and services to customers

    when they arrive and stay at the hotel. Secondly, benevolence trust

    is the customers reliance upon the care, concern, honesty and

    benevolence shown by the hotel. Customers trust in the hotels

    benevolence refers to their belief that the hotel will not only act

    in a competent and reliable manner, but will also have the well-

    being and interests of the customer at heart when making service

    decisions and providing services. Therefore, based on these ideas

    about trust, we propose the following hypothesis:

    H1. Customer trust will positively influence on customer loyalty.

    2.1.2. Customer identificationwith the company

    Customer identification with the company (C-C identification)

    is an important but underutilized construct. Similar to trust, C-C

    identification also influences customer loyalty (Bhattacharya and

    Sen, 2003; Marin et al., 2009; Perez et al., 2012). Based on Social

    Identity Theory (Stets and Burke, 2000; Tajfel and Turner, 1979)

    and Self-Categorization Theory (Hornse, 2008; Turner et al., 1987)

    C-C identification helps explain reasons and motivations which

    encourage individuals to relate to companies. This occurs through

    a cognitive categorization process where an individual positions

    him/herself as a member of an organization by enhancing similar-

    ities with other members and differences with non-members. By

    the awarenessof belongingand connection to an organizationindi-

    viduals canachievea positive social identity (Kreiner and Ashforth,

    2004). As a result of this sense of connection, the organization is

    psychologically acceptedas partof thatpersonal identity(Scott and

    Lane, 2000). The underlying premise is that individuals typically

    go beyond their personal identity to develop a social identity with

    the hope of articulating their sense of self (Kreiner and Ashforth,

    2004) and that individuals may also identify with organizations

    even when they are not formal members of these organizations

    (Scott and Lane, 2000). Therefore, organizational customers also

    have the need for self-definition and may express themselves

    through developing social identifying relationships. In this regard,C-C identification is a cognitive stateof self-categorization, connec-

    tion and proximity of a consumer to the company (Bhattacharya

    and Sen, 2003), brought about by a subjective process of compar-

    ison between the organizational identity and the consumers own

    identity (Ashforth and Mael, 1989; Dutton et al., 1994). In other

    words, this cognitive state of connection and proximity implies a

    perception of overlap between the organizational and the personal

    identity (Ashforth and Mael, 1989; Bhattacharya and Sen, 2003)

    where theexistence of sharedvalues plays an important role (Scott

    and Lane, 2000).

    C-C identification originates consumers to become psycholog-

    ically attached to and care about the company (Bhattacharya and

    Sen, 2003), which positively stimulates their loyalty (Marin et al.,

    2009; Perez et al., 2012). Moreover, Bhattacharya and Sen (2003)propose that in consumercompany relationship contexts, the

    commitment generated by identification is expressed by a more

    stable andlasting preference, so loyalty is a natural consequence of

    C-C identification. Since consumers identify not only with its prod-

    ucts or services butalso with a company, their loyalty is likely to be

    invulnerable to minor modifications in product (or service) devel-

    opmentand extendto allthe products andservicesprovidedby the

    company (Bhattacharya and Sen, 2003). To our knowledge, hospi-

    talityresearchhas notdocumentedthe role of C-C identification on

    hotel customer loyalty which represents a fundamental advance in

    academic literature within this context. Therefore, based on these

    ideas about C-C identification, we propose the following hypothe-

    sis:

    H2. C-C identification will positively influence on customer loy-

    alty.

    2.1.3. Customer satisfaction

    Finally, an extensively tested relationship between consumer

    satisfaction and loyalty is included (Dick and Basu, 1994; Oliver,

    1997). The academic literature has suggested that if customers

    are satisfied with their chosen brands, increasingly they will be

    inclined to re-purchase its products or services and finally become

    loyal customers exhibiting strong customer goodwill. Research has

    shown that customer satisfaction has a significant positive impact

    on customerretention, service usage, andon share of customer pur-

    chases so customer satisfaction is considered to be one the main

    antecedents of customer loyalty (Verhoef, 2003). Many studies in

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    the previous hospitality and tourist literature have proposed and

    tested the relationship between satisfaction and loyalty (Kim et al.,

    2001; Evanschitzky and Wunderlich, 2006). For instance, in the

    hotel industry, Kim et al. (2001) demonstrated that satisfaction

    was an important predictor of commitment and loyalty. Hence,

    and basing on the previous literature review regarding customer

    satisfaction we propose:

    H3. Customer satisfaction will positively influence on customer

    loyalty.

    3. Influence of CSR associations on C-C identification, trust

    and satisfaction

    CSR associations reflect the organizations status and activi-

    ties with respect to its perceived societal obligations (Brown and

    Dacin, 1997). An increasing stream of research proposes to study

    the effects of CSR associations on consumer attitudes and behaviors

    emphasizing the identification of this collective with the company.

    Actually, several authors have identified a positive influence of

    CSR associations on consumer identification with the company (He

    and Li, 2011; Lichtenstein et al., 2004; Marin et al., 2009). More-

    over, although CSR information is better used to generate states of

    identification and connection for the consumer toward the com-pany, some researchers also suggest its relationship to consumer

    trust and satisfaction (Luo and Bhattacharya, 2006; Swaen and

    Chumpitaz, 2008). Regarding the link between CSR and C-C iden-

    tification, the organizational identification literature teaches that

    companys CSR activities reveal a corporate character and iden-

    tity that allows stakeholders to identify with the firm on the basis

    of an evaluation of the overlap between their own identities and

    that of the company (Lichtenstein et al., 2004; Maignan and Ferrell,

    2004; Sen and Bhattacharya, 2001). CSR initiatives associate the

    company with an image of responsiveness to the needs of the soci-

    etyit depends on for continuedexistence andsurvival (Marin et al.,

    2009). Recently, studies about C-C identification (Bhattacharya and

    Sen, 2003; Marin et al., 2009) suggest that CSR initiatives are a key

    element of corporate identity that can induce customers to identifyand develop a sense of connection with the company. More pre-

    cisely, Lichtenstein et al. (2004, p. 17) state that the way that CSR

    initiatives create benefits for companies appears to be by increasing

    consumers identification with the company. For this reason, indi-

    viduals who are aware of the companys efforts to develop socially

    responsible activities will develop higher stages of identification

    with thefirm than thoseindividualswho arenot aware of these ini-

    tiatives (Bhattacharya and Sen, 2003). Additionally, it is suggested

    that individuals are more likely to identify with those companies

    with higher levels of CSR in order to express a more ethical and

    social image and increase their self-esteem (Aquino and Reed II,

    2002). Taking into account all the literature review presented, it

    seems appropriate to propose that:

    H4. CSR associations will have a positive directeffect on C-C iden-tification.

    3.1. CSR associations and customer trust

    Similar to C-C identification, trust is positively affected by CSR

    (Ball et al., 2004; Kennedy et al., 2001; Swaen and Chumpitaz,

    2008). Consumer trust is affected by the existence of values that

    the company and its consumer share (Morgan and Hunt, 1994).

    Regarding CSRs initiatives, this behavior provides information

    about corporate character and values (Brown and Dacin, 1997),

    and it is useful for enhancinggeneral trust towardthe organization

    (Aaker, 1996). As Hosmer (1994) states, by injecting ethical and

    responsible principles into companies strategic decision-making

    processes firms canenhance the trust of all stakeholders, including

    customers. The perception that a company is ethical and responsi-

    ble stimulates trust-based relationships founded in the belief that

    all exchange partners actions will be credible beyond any contrac-

    tual or legal constraints (Swaen and Chumpitaz, 2008). In support

    of this view, Pivato et al. (2008, p. 5) also recently proposed that

    the creation of trust is one of the most immediate consequences of a

    companys social performance or the immediate or most proximate

    outcome of CSR activities (with attitude, behaviors, and financial

    performance being more distal CSR outcomes). Thus, we put for-

    ward the following research hypothesis:

    H5. CSR associations will positively influence on customer trust.

    3.2. CSR associations and customer satisfaction

    In the same way, the academic literature has suggested that

    CSR associations can influence customer satisfaction (Bign et al.,

    2011; He and Li, 2011; Luo and Bhattacharya, 2006). However,

    those works in which has been tested the relationship between

    CSR and consumer satisfaction have based their analysis on eco-

    nomic criteria (Luo and Bhattacharya, 2006). So, theanalysis of this

    relationship not basing the study on economic criteria is consid-

    ered a contributing source to the literature (Bign et al., 2011).

    CSR associations create a favorable context around the companystimulating the emission of more favorable judgments about the

    service experience (Brown and Dacin, 1997). So that customers are

    more understanding to failures in the service delivery improving

    customer satisfaction. Luo and Bhattacharya (2006, p. 3) articulate

    three reasons for what they name the CSR activities-customer sat-

    isfaction effect. Firstly, as Maignan et al. (2005) suggest companys

    customers can be potential stakeholders who cares about not only

    the economic performance of organizations but also to the over-

    all standing (including social performance) of the company. Thus,

    customers are likely to be more satisfied if services or products

    providers develop CSR initiatives and present a socially responsi-

    ble behavior toward society (He and Li, 2011). Secondly, a strong

    record of CSR creates a favorable image that positively enhances

    consumers evaluations of the firm and their attitude toward it(Sen and Bhattacharya, 2001). Moreover, CSR initiatives are a key

    element of corporate identity that can lead customers to identify

    with the company and these customers are more likely to be sat-

    isfied with firms offerings (Bhattacharya and Sen, 2003). Three,

    Mithas et al. (2005) empirically demonstrate that perceived value

    is a key antecedent to promoting customer satisfaction. Customers

    are more likely to derive better perceived value and, consequently,

    highersatisfaction from a product that is made bya socially respon-

    sible company (Luo and Bhattacharya, 2006). Following this line of

    thought, this paper argues that CSR associations have an effect on

    customer satisfaction. Thus, we hypothesize:

    H6. CSR associations will positively influence on customer satis-

    faction.

    3.3. Identification and satisfaction

    Expectation disconfirmation theory of customer satisfaction

    (Oliver, 1997) proposes that customers are more likely to be satis-

    fied when the actual company performance exceeds or confirms

    prior expectations. C-C identification provides a more favorable

    context for customers to respond to company performance experi-

    ence as against prior expectation (He and Li, 2011). Thus, when

    company performance expectations are confirmed (or exceed),

    those customers with higher levels of identification with the com-

    pany will be more satisfied, since it reassures customers of their

    psychological attachment with the company, which in turns helps

    the customers to preserve its self-esteem (Aquino and Reed II,

    2002). However, whencorporate performance expectations are not

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    TRU

    LOYCSR CCI

    SAT

    H1

    H2

    H3

    H5

    H4

    H6

    H8

    H7

    H9

    Fig. 1. Conceptual model.

    confirmed, customers with high levels of identification with the

    company will tend to be less dissatisfied due to their more affec-

    tive attachment to the company (Chaudhuri and Holbrook, 2001).

    Thus, customers with stronger identification are more prone to be

    satisfied with thecompany(Bhattacharya andSen, 2003;He and Li,

    2011). Therefore, it is more likelythat customers with higherlevels

    of identification with the company experience more severe states

    of satisfaction. So that, we propose:

    H7. C-C identification will positively influence on customer satis-faction.

    3.4. Identification and trust

    Mutual trust is a key characteristic of successful social

    exchanges. Therefore, companies consider building a trustwor-

    thy identity among their stakeholders customers, employees,

    investors and other bodies as a crucial mission. Customers are

    likely to identify with trustworthy organizations in order to com-

    municate their self-definition and enhance their self-esteem (Keh

    and Xie, 2009). By identifying with the trusted party character-

    ized as being competent, benevolent and honest, customers tend

    to portray a similar profile to them. That a customer will per-

    ceive a linkage between its self-identity and a specific companywhen the firm distrusts the consumer is hard to imagine. In this

    sense, Bhattacharya and Sen (2003) propose that the extent to

    which consumers perceive the company identity as trustworthy

    will determine their response to it. Further, as a key factor in

    building close and long-term relationships, trust should also be

    an antecedent of identified relationships. Based on the previous

    argument, it is hypothesized that:

    H8. Customer trust will positively influence on C-C identification.

    3.5. Trust and satisfaction

    Previous studies documentthat trustand satisfaction are closely

    related to each other. Academic literature in the hospitality con-

    text supports the close relationship between satisfaction and trust

    (Christou,2010; Yuksel et al., 2008). Previous studies maintain that

    trust precedes satisfaction (Chiou and Pan, 2009). According to

    these studies there are many different sources of trust and these

    will have a positive influence on the quality of experience with the

    organization (e.g., satisfaction judgment). For instance, one may

    build trust in an organization based on positive word-of-mouth,

    advertising,and other types of communication. Thiswill have a pos-

    itive influence on his/her own judgment of the organization, upon

    experiencingthe firm.Therefore, trust in an organizationwill create

    a positive attitude toward the organization, increasing satisfaction

    (Chiou and Pan, 2009) (Fig. 1). So that, we propose:

    H9. Customer trust will positively influence on customer satisfac-

    tion.

    4. Methods

    4.1. Data collection and sample

    The quantitative method used to test the research hypothe-

    ses included the development of a survey questionnaire to

    measure customers perceptions of Spanish hotel companies. A

    non-probability sampling procedure was chosen (Trespalacios

    et al., 2005) to design the research sample. To ensure greater rep-

    resentation of the data, a multistage sampling by quotas was made

    by characterizing the population according to two criteria relevant

    to the investigation: the sex and the age of the respondent. Thus,

    personal surveys of hotel customers were conducted during the

    period April 425, 2011. The data collection was developed in col-

    laboration with university students of the University of Cantabria

    coursing their last academic year. Of the 400 questionnaires, 382

    usable questionnaireswere returned.Respondents wereinstructed

    to refer national hotels where they had spent their last holidays

    in the last year when answering questions regarding the variables

    integrated in the model.

    4.2. Measures

    Existing well-established multiple-item 7-point Likert scales,

    ranging from strongly disagree (1) to strongly agree (7), were

    adopted to measure our variables. CSR associations were measured

    followingthe model providedby Brown andDacin (1997). C-C iden-

    tification was measured using a four item scale from Mael and

    Ashforth (1992). Customer satisfaction was measured following a

    six items scale provided by Cronin et al. (2000). In the literature,

    researchers have used both the unidimensional (Selnes and Sallis,

    2003) andmultidimensionalviews of trust(Kingshott,2006). In this

    research, we took a multidimensional perspective and operational-

    ized customer trust multidimensionally. Measures of consumer

    trust were adapted from extant research (Morgan and Hunt, 1994;

    Sirdeshmukh et al., 2002) and included five items measuring the

    performance and benevolence components of trust. Finally, cus-tomer loyalty measure was drawn from extant services literature

    (Sirdeshmukh et al., 2002; Zeithaml et al., 1996) and included four

    items measuring both the attitudinal and behavioral components

    of loyalty. The final measures are provided in the Appendix. Before

    the main study, the questionnaire was assessed for content valid-

    ity based on feedback from two scholars and sixteen postgraduate

    students who specializes in hospitality and tourism, who offered

    comments concerning item comprehensibility, readability, word-

    ing, ambiguity and any other weaknesses in the questionnaire

    design and instrumentation (Hair et al., 2010). During the pretest

    procedure, respondents were encouraged to comment any ques-

    tion that they thought was unclear, ambiguous or that they were

    unable to answer. Some minor grammatical changes were made to

    the questionnairefollowing thepretest process. Nevertheless, noneof the items was deleted in response to theexperts comments. The

    items on the questionnaire were used because they met the criteria

    for the item analysis.

    5. Results

    Table 1 displays the respondents profile. Female respondents

    accounted for 50.2% of the sample, while male respondents repre-

    sented 49.8%. Ten percent of the respondents were under the age

    of 24, with 38.7% between the ages of 25 and 44, and 51.3% over

    the age of 45. Interms of educational level, 52.7% of the sample had

    an undergraduate degree, 20.3%a graduate degree and18.9%of the

    respondents had a postgraduate degree.

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    P. Martnez, I. Rodrguez del Bosque / International Journal of Hospitality Management35 (2013) 8999 95

    Table 4

    Structural equation model results.

    Hypotheses Structural relationship Std. coefficient (Robust t-value) Contrast

    H1 TrustLoyalty 0.68 (9.12)* Accepted

    H2 C-C identificationLoyalty 0.45 (3.66)* Accepted

    H3 SatisfactionLoyalty 0.39 (2.75)* Accepted

    H4 CSRC-C identification 0.30 (3.74)* Accepted

    H5 CSRTrust 0.49(4.95)* Accepted

    H6 CSRSatisfaction 0.73(11.02)* Accepted

    H7 C-C identificationSatisfaction 0.34 (3.65)*

    AcceptedH8 TrustC-C identification 0.11 (1.56) Rejected

    H9 TrustSatisfaction 0.53 (4.38)* Accepted

    NFI =0.93 TLI = 0.95, CFI = 0.93 IFI = 0.96, GFI = 0.87 RMSEA = 0.06

    2 =353.738, df= 157 (p= 0.000), 2/df=2.25

    * Significantp

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    96 P. Martnez, I. Rodrguez del Bosque / International Journal of Hospitality Management35 (2013) 8999

    Table 5

    Mediation analysis results.

    Fit estimates 2 df 2 df NFI TLI CFI IFI GFI RMSEA

    Model 1 353.73 157 Base comparison 0.93 0.95 0.93 0.96 0.88 0.06

    Model 2 78.907 13 0.93 0.90 0.94 0.94 0.87 0.11

    Model 3 453.61 160 99.87 3 0.89 0.91 0.92 0.92 0.86 0.08

    Model 4 347.65 156 6.08 1 0.93 0.95 0.93 0.96 0.87 0.06

    Model 1, full mediation Model 2 Model 3, no mediation Model 4, partial mediation

    CSRTrust 0.49* 0.25* 0.49*

    CSRC-C identification 0.30* 0.36* 0.30*

    CSRSatisfaction 0.73* 0.43* 0.72*

    CSRLoyalty 0.38* 0.51* 0.10

    TrustLoyalty 0.68* 0.59*

    C-C identificationLoyalty 0.45* 0.35*

    SatisfactionLoyalty 0.39* 0.34*

    TrustSatisfaction 0.53* 0.52*

    C-C identificationSatisfaction 0.34* 0.30*

    TrustC-C identification 0.11 0.11

    R2

    Trust 0.21 0.22 0.21

    C-C identification 0.40 0.43 0.40

    Satisfaction 0.75 0.70 0.75

    Loyalty 0.74 0.14 0.28 0.74

    * Significantp

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    P. Martnez, I. Rodrguez del Bosque / International Journal of Hospitality Management35 (2013) 8999 97

    path to customer royalty. This research demonstrates this point

    by developing and testing a general framework that integrates

    social identity and social exchange perspectives on customer loy-

    alty. Recently, academic literature agrees to integrate the role of

    different constructs such as trust and satisfaction (He et al., 2012;

    So et al., 2013) to customer loyalty. Therefore, this study expands

    previous researchon social identityperspective of customerloyalty

    by incorporating the mediationeffects of social exchange variables.

    Additionally, this study proves the pivotal role of customer iden-

    tification development and highlights the mediation influence of

    C-C identification on the effects of CSR on the path to customer

    loyalty.

    From a practical point of view, this research expands the tra-

    ditional view of CSRs effects on customers and suggests that CSR

    associations do not only affect product evaluation, but also cus-

    tomer identification with the company, customer satisfaction and

    trust. Customers are more likely to believe that responsible com-

    panies operate honestly in their activities and reflect interests of

    both parties in the relationship when making decisions, which

    contribute to the trustworthiness and honesty of these companies

    and the satisfaction of customers. Moreover, customers are more

    willing to relate with companies carrying out socially responsible

    initiatives, as part of self-enhancement and self-stem. Essentially,

    a focus on CSR provides an effective instrument for increasing trustbetween companies and their customers. CSR facilitates the devel-

    opment of relationships that are formed on the basis of honesty

    and a belief on others promises and actions, something beyond

    legalities and contractual arrangements (Kennedy et al., 2001).

    Thus, this study adds additional empirical evidence to the recent

    observation of the positive effect of CSR on customer identifica-

    tion (Lichtenstein et al., 2004; Marin et al., 2009; Perez et al., 2012)

    and customer satisfaction (Luo and Bhattacharya, 2006; He and

    Li, 2011), and extends Luo and Bhattacharyas (2006) research by

    proposing, developing and confirming the mediation role of cus-

    tomer identificationon the relationship between CSR and customer

    satisfaction.

    Finally, it is important to note that the effect of trust on C-C

    identification is not significant. This finding surprisingly contra-dicts results from Keh and Xie (2009) who established a positive

    influence of consumer trust on consumer identification with the

    company. However, these authors argue that the role of trust is

    not likely one that lasts forever and is highly dependent on other

    factors. The cause of discrepancy between the present study and

    previous research (Keh and Xie, 2009) can be that unlike previous

    studies, this research operationalizes consumers trust as a two-

    dimensional concept composed of performance and benevolence

    components. This result is consistent with the study ofChoi and

    Kim (2011) who stated that only by creating and developing cus-

    tomer trust is not a guarantee of identification within the hotel

    industry.

    7. Managerial implications

    These findings have important managerial implications for hos-

    pitality companies in building strong and lasting relationships

    with consumers. First, our results indicate that companies play

    an important role in the everyday lives of consumers and can

    even influence the construction of individuals identity. Specifi-

    cally, the results suggest that by focusing on aspects that influence

    consumer behavior (e.g., CSR-based identification) managers could

    achieve some important and desired consequences, most notably

    consumers satisfaction and loyalty. These findings suggest that

    hotel managers should invest more in socially responsible initia-

    tives since customers tend to support and rewardthose companies

    that are perceived as socially responsible by developing a greatest

    loyalty toward them. With regard to this, the significant rele-

    vance of both CSR on C-C identification, and C-C identification on

    customer satisfaction and loyalty, suggests that hospitality firms

    should invest in the area of corporate identity management. It is

    vital for managers take into account the relevance of the com-

    pany identity for their target market. By strategically managing

    corporate identity hotel managers can enhance corporate associ-

    ations which in turn foster senses of belonging and identification

    amongvariousstakeholders(HeandLi,2011), andencourage favor-able attitudinal and behavioral responses to the firms (Brown and

    Dacin, 1997). Therefore, hotel managers should make an effort

    to develop a distinct CSR-based corporate identity that resonates

    with customers. This way, hospitality managers could reinforce

    their corporate strategy through their investment in CSR initia-

    tives since a company that provides benefits through their various

    CSR activities will be perceived as a company that is both able

    and interested in caring for their customers (Marin et al., 2009).

    It is also very important that managers, when design programs

    aimed at reinforcing customer loyalty, besides offering additional

    benefits and showing trustworthiness, should communicate not

    only corporate identity but also create the notion of identifica-

    tion among customers. Within the hospitality context, companies

    may enhance stakeholders identification with the organization

    through several approaches such as the inclusion of CSR images in

    corporate communications, by affiliating stakeholders to the com-

    pany by shared concerns toward a specific social or environmental

    cause, or by fostering stakeholders interactions around CSR activ-

    ities.

    Third, given that CSR has stronger effect on customer satis-

    faction, hospitality companies should assign their resources to

    improve these areas. Hospitality companies should invest more

    on CSR initiates since it has been demonstrated that one of the

    reasons making the consumer feel satisfied with the company is

    the knowledge and perception of its social responsibility, which

    can be positively influenced by the corporate communication of

    its CSR program. In this sense, any communication that makes CSR

    programs more credible, authentic and distinct from competitors

    will considerably improve the companys attractive. Nevertheless,any communication attempting to connect companies to a socially

    responsible identity must consider the extent to which that CSR-

    based identity is valued by customers, and what aspects can be

    leveraged to enhance perceptions of self-importance associated

    with that identity.

    Although most of our hypotheses are supported, this study has

    a few limitations that present opportunities for further research.

    This study tests the hypothesis with hotel consumers based on a

    convenient sample from Spain. Future research should test this

    modelwith larger random samples or samples in othercontexts, for

    instance in different subsectors of the tourism industry to general-

    ize the results obtained. Second, other social exchange variables

    such as customer commitment can be included in future stud-

    ies to form a more inclusive and comprehensive framework, andprovide additional insights into the development and benefits of

    CSR. Thirdly, there are other antecedents of customer loyalty such

    as perceived quality, perceived value and complaint handling that

    could be included since the explanatory power of our model could

    still be improved. Fourth, given that CSR was measured following

    the model provided by Brown and Dacin (1997), future studies

    may analyze the proposed model in this study by using differ-

    ent conceptual frameworks such as the Carrolls pyramid or the

    sustainable development-based model in order to provide a more

    comprehensive model. Finally, the consideration of separate con-

    structs for loyalty, onemore related to attitudinal loyalty and other

    to behavioral loyally,may notonly contribute to a superior explana-

    tory power, but also to a better understanding of the nature of the

    relationships.

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