Perceived effect of philanthropic relation on customer loyaty

Perceived effect of philanthropic relation on customer loyaty

Author by Dr. Margret Kabuoh

Journal/Publisher: International Journal Of Development Strategies In Humanities, Management & Social Sciencec

Volume/Edition: 6

Language: English

Pages: 138 - 146

Abstract

There has been intense competition amongst the food and beverage industry as organizations are striving to gain customer loyalty in the same market. Hence, there is need for this organization to go beyond borders in order to gain customer loyalty. Organizations therefore have employed the philanthropic aspect of corporate social responsibility in order to enjoy consistent patronage from their customers. This study seeks to evaluate the perceived effect of philanthropic relation on customer loyalty in selected food and beverage companies in Lagos State, Nigeria. Survey research was employed for this study. The population of the study consists of management staff (strategic and operational management level) from the Nigeria Bottling Company and Seven-Up Bottling Company in Lagos state giving a population of 1,987.  Taro Yamane formula was used to arrive at a sample size of 433. A structured questionnaire was administered which gave a response rate of 91.7%. The instrument was validated and the Cronbach Alpha reliability for the construct was 0.823. The results of the analysis show that philanthropic relation has a significant effect on customer loyalty (R2 = 0.880, p = 0.000 < 0>there is a significant relationship between philanthropic relation and customer loyalty. The study then recommends that philanthropic relation should be integrated in the organizations’ strategy and should not be seen as a mere giving where only the community benefits.


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