Businesses have witnessed a significant increase in the demand for firms to be actively involved in CSR activities. As a result of this, business executive leverages on this development as a medium to not only increase customer loyalty but to gain competitive advantage in today’s business environment. The purpose and main objective of this study are to examine the effect of corporate social responsibility (CSR) activities on customer loyalty among customers in the grocery retail business in Nigeria. This research aim is to establish a positive relationship that exists between CSR activities and customer loyalty in the grocery retail business in Nigeria. It will be of interest to the firms in the grocery retail industry in Nigeria to examine how current and potential customers evaluate their various CSR activities, how it is significant to creating more loyal customers and improving the company’s brand reputation in the business environment.
Design/ research methodology/approach
A mono quantitative research methodology was chosen for this research. The quantitative cross-sectional research design was employed to measure the effects of CSR activities on customer loyalty and company reputation in the grocery retail business in Nigeria. An in-person distribution of questionnaires was done among 300 customers who frequently visited the five grocery retail businesses based on the revenue generated in Lagos, Nigeria.
A total of 300 questionnaires were administered but 276 respondents from different age
groups, sex, and educational background successfully responded to the questionnaires without bias. Having analysed the data using the multiple regression analysis in SPSS statistics, it was found from the analysis that CSR activities has a positive effect on customer loyalty and plays a significant role in improving brand reputation in the business environment thereby enabling such corporate organization gain competitive advantage in the business environment. About the strength of prediction, it was found that companies that engage in CSR activities that aim at improving their immediate society had the strongest effect. This was followed corporate organizations in the grocery retail business in Nigeria that engages in CSR activities that treat their employees fairly.
The research adds value to previous research to CSR in Nigeria. It is, however, original in the aspect of research conducted on the effect of CSR activities on customer loyalty in the grocery retail business in Nigeria. This research, therefore, proposes customer satisfaction, customer service, fair treatment of employees, improvement in the wellbeing and development of the community in which such business thrives are the significant CSR activities that have a positive effect on customer loyalty. Value is therefore added to companies that integrate such CSR activities in their objectives in terms of having a tremendous improvement in company brand reputation in the business environment and strengthening of customer loyalty in other to gain competitive advantage.