Impact of corporate social responsibility on customer

Satisfaction and customer retention

Under the mediating role of customer company identification

Muhammad Rafeeq
MBA Mktg SAP 12577, Spring 2020
Riphah International University
Rafique_muhammad@yahoo.com
Abstract

Purpose- The purpose of this paper is to examine the influence of perceived CSR and C-C
identification as it also influences on customer satisfaction, customer retention of automotive
industry in Pakistan.
Design/methodology/approach- Personal survey from automotive customers will be carried
out in the various metropolitan cities of Punjab Pakistan including Islamabad, Rawalpindi
and Lahore. There will be more than 200 valid responses collected and further analyze for
research purposes.
Findings- Findings will show the customer perception about CSR activities along with cus-
tomer company identification in results of customer satisfaction, retention.
Research limitation- Study will only have impact on customer satisfaction, retention which
further suggests the automotive industry to invest more on CSR and C-C Identification.
Practical Implications- Study will suggest automotive industries to work practical things to
enhance customer satisfaction, retention which will further increase the business.
Originality value- This study will provide a comprehensive frame work that integrates CSR
and C-C Identification values towards building the customer satisfaction, retention.
Keywords- Corporate social responsibilities, Customer Company Identification, customer
satisfaction, customer retention.

1. Introduction
Pakistan automotive industry is a fastest growing industries in South Asia. The production
and sales have both grown 171% and 172.5% between (2014 and 2018), (new release 18th
of March 2016 invest.gov.pk/automobile). Employing workforce ratio of over 1.8 million
according to (en.wikipedia.org/wiki/Automotive_industry_in_Pakistan 2020). The automo-
tive organization offering various benefits to social, cultural and economic nationwide envi-
ronments through generating of employment opportunities (Yang et al., 2012),
(Bohdanowicz and Zientara, 2009). In today modern business world, the main key objective
is to get the competitive advantage over its competitors, because in old days in Pakistan there
were only three main competitor manufacturing of cars, but now the scenario become
changed and new other competitors are entered in the market like; Changan, Nissan, KIA,
Alhaj Faw, Master Motors etc., (Muhammad Rafeeq, 2020). Every organization wants to
maximize profit by delivering best quality products, services and by utilizing minimum re-
sources. Customer satisfaction is the key success toward customer retention, and high cus-
tomer satisfaction brings more customers toward retain with brand (Petruzz and Romanazzi,
2006). In financial year 2019, the sales of cars of automotive sector dropped by 44% in Paki-
stan (News releases, February 12th, 2020).Today the most important goal for automobile sec-
tor is to retain the customers. Customer satisfaction is the main object of well reputed organi-
zation. There are different ways by which an organization may try to retain customer’s
(Oksana, 2003). In this modern world satisfaction of customer become a challenging job for
organization. The prices of product, quality work and timely delivery, offered by the compet-
itors usually make it a far cry for the firm. Some competitors add the value to the products
and it offers in different ways. In old days, bestselling organization were considered success-
ful, but in this modern time the world has become changed and only sales are not the target
and achievements of the organization. Every organization selling their products but as dis-
cussed, that only products selling are not enough for an organization to survive in the market
for a long time and build profitable relationship with the customers in the competitive mar-
ket, where dissatisfied customers are easily switched to other brands. If a customer purchases
a car from the company and after some time he or she observed any defect in the car, then he
or she will visit at company workshop for rectification of the problem, after sales service is
one of the most important objective where customer visits at company and service staff re-
solves their product issues. Companies trying to deliver best services to the customers be-
cause if one customer satisfied then he will recommend, revisit and repurchase of the product
and services. Therefore, companies must focus on a comprehensive approach towards rela-
tionship marketing that include customer satisfaction which will result in retaining current
customers as well new customers and generation of positive word of mouth. A perceived
value of a product or services has a deep and direct impact on the customer satisfaction (Vin-
cent et al., 2008). Automotive customers have become more aware about the CSR practices
today (Rafeeq 2020). By interpreting customer behaviors like retention to profit firms move
closer to the dependent variable profitability (Reichheld and Sasser, 1990; Reichheld et al.,
2000). Customer relationships have increasingly studied in the academic marketing literature
(Berry 1995; Dawyer, Schurr, and Oh 1987; Morgan and Hunt 1994; Sheth and Paravtiayar
1995). Increased awareness among customers about CSR activities put pressure on compa-
nies to be socially responsible that is the key reason behind organizations adopting CSR ac-
tivities (Bohdanowicz, 2006). CSR practices followed by organizations are also affecting
customer satisfaction (Gao and Mattila, 2014). Customer satisfaction is directly related to
company profitability of the company (Lee and Heo, 2009).

2. Literature Review
The concept of CSR is very broad (Mohr et al., 2001) elusive (Smith and Langford, 2009),
and still evolving (Cochran, 2007). Many concepts of CSR have been emerged in literature,
but in a lack of commonly accepted definition (Gatti et al., 2012). Bowen (1953) was the first
person who had defined the actual concept of CSR as the obligation “to pursue those policies,
to make those decisions or to follow those lines of action which are desirable in terms of the
objective values of our society” (p.6) in the book, Social Responsibilities of Businessmen.
Laterkieth Davis (1960) suggested that the business social responsibility refers to the “deci-
sion and action taken for any reasons, at least partially beyond the firm’s direct economic or
technical interest” (p.70). About the same time, Eells and Walton (1961) show the concerns
for the broader social responsibility system. In (2000), European Commission defines that the
CSR as a “concept whereby companies participates in social and environmental concerns in
their business operations and in their interaction with their stakeholders, shareholders on a
voluntary basis” (Commission of European Communities, 2006, p.5).This statement has been
used in other terms also such as Corporate Social Responsiveness (Wartick and Cochran,
1985), this concept also has been used in corporate sustainability, and ethics (Vaaland et al.,
2008) and corporate citizenship (Maignan, 2001). With the passage of time the importance of
CSR has been acknowledged by many different firms all over the world (Luo and
Bhattacharya, 2006). In previous studies shows that CSR influences consumer product re-
sponses (Brown and Dacin, 1997), Consumer company identification is the “positive word of
mouth” (Sen and Bhattachrya, 2001) and (Price et al., 1987), overall company evaluation and
improve financial performance (Marin et al., 2009) and Luo and Bhattachrya, 2006). On the
other hand, CSR has been linked to various customer responses and awareness throughout
nationwide about the product and service (Muhammad Rafeeq, 2020).
2.1 Customer identification with the company (C-C identification)
According to the social identity theory (Tajfel and Turner, 1979; Brewer, 1996), customers
tend to identify themselves with organizations on the basis of similar traits and values shared
by the organization (Mael and Ashforth, 1992). In order to satisfy the self-definitional need,
individuals go beyond their self-identity to form a social identity (Turner, 1985). Social iden-
tity refers to the perception of the self with respect to a group while considering the conse-
quences of individual identification with that group (Mael and Ashforth, 1992). C-C identifi-
cation is a substrate of meaningful and deep-rooted relationships that marketers seek to de-
velop with their customers (Bhattacharya and Sen, 2003). Turner (1985) stated that individu-
als tend to attach themselves to groups which they perceive as distinctive and socially re-
sponsible in order distinguish themselves from others. In a business context, customers who
identify with a company are more likely to support its products/services and safeguard its
reputation (Siu et al., 2014).

2.2 CSR and C-C identification

C-C identification literature suggests that if self-identity of the consumer overlaps with com-
pany identity (in cases where the company is engaged in CSR activities), the consumer iden-
tifies with the company (Sen and Bhattacharya, 2001). Thus, individuals aware of company’s
socially responsible actions show higher levels of identification with them as compared to
those individuals who are not aware of such initiatives (Sen et al., 2006). Thus, consumer
perceived CSR strengthens consumer’s identification towards the organization and instills
within them a sense of belonging towards the organization (Matute-Vallejo et al., 2011).
Therefore, the following hypothesis is proposed:

H1. CSR is positively and directly related to C-C identification

2.3 C-C identification and satisfaction

According to the cognitive affective model, customer satisfaction is achieved through cogni-
tive and affective responses (del Bosque and San Martin, 2008). Identification may serve as a
psychological process that motivates satisfaction (Siu et al., 2014). Expectation disconfirma-
tion theory suggests that customers are likely to be satisfied with a company if the actual per-
formance of the products or services offered by the company exceeds their expectations
means customer delight (Oliver, 1997). C-C identification results in a more favorable view
towards the company (He and Li, 2011); even ifcustomer expectations and demand are not
met by the product or services offered by the company, the consumer will remain less dissat-
isfied but not leave the brand if C-C identification is strong (Perez and del Bosque, 2015). As
mentioned above, when company performance meets or exceeds customer expectations, the
result is satisfied customers with strong company identification (Martinez and del Bosque,
2013). This further reinforces customers emotional attachment to the company and helps in
preserving their self-esteem(Aquino and Reed II, 2002). It is more likely that customers with
strong C-C identification will be satisfied with the company (Bhattacharya and Sen, 2003).
Hence, the following hypothesis is proposed:

H2. C-C identification is positively and directly related to customer satisfaction.

2.4 C-C Identification and customer retention

Inline Social Identity theory (e.g. Brewer, 1991; Kramer, 1991; Tajfel and Turner, 1979,
1985), explains that individuals uses entities such as companies as a social identifier in order
to define themselves with companies, they tend to hold more positive images of those organ-
izations. They tend to hold more positive images of those organizations. This consequence
extends the research in organizational Identification e.g. (Ashfort and Mael, 1989; Bergami
and Bagozzi, 2000; Dutton et al., 1994) to the context of consumers (Bhattachrya and Sen,
2003), this showing that employees are not only, but also affect external audiences (custom-
ers) identity themselves with organization in order to make sense of who they are and what
they belong to. In line with (Bhattacharya and Sen, 2003), this study highlights that strategies
that encourage customer identification with organization may be the key for achieving cus-
tomer retention. Earlier studies have suggested that customer satisfaction has a positive im-
pact on customer retention, customer car maintenance, purchases of goods and service usage,
and this considered one of the main antecedents (Leverin and Liljander, 2006; Aurier and N
Goala, 2010).

H3. C-C identification is positively and directly related to customer retention.

2.5 Customer satisfaction

Customer satisfaction refers to the internal positive feeling of a customer towards a brand
which meets his expectations (Carl and Mc Daniel, 2005). Customer satisfaction refers to the
internal positive feeling of a customer towards a brand which meets his expectations (Carl
and McDaniel 2005). Customer satisfaction represents the positive influence and builds
strong customer relationship between the firm and its customer. If the customers are satisfied
with the product and service of the firm, they are influenced positively towards buying. Cus-
tomer satisfaction is the overall analysis of the product (Johnson and fornell, 1991). Custom-
er satisfaction refers to the attitude of buyer to continue the relationship (Fornel 1992; Ander-
son 1994; Ndubisi 2003). Service quality and product quality, price and brand image are cor-
related to customer satisfaction (Malik at el., 2012. Employ empowerment, timely decision
reduces time and increases customer satisfaction (Muhammad Rafeeq, 2020). Customer satis-
faction is not difficult job it is very easily accessible based upon on past experiences (Jung-
Chaeuh and Youjae, 2006).

2.6 CSR and customer satisfaction

CSR activities help and create a more favorable context that positively influence on customer
evaluation and attitude toward the organization. Mutually organized philosophy (Scott 1987)
and sponsor philosophy (Maignan, Ferrell, & Ferrell, 2005) reveals that an organization ar-
rangement is not only related to economic but also with house hold members, municipal and
realm (Handelman and Arnold, 1999). Customer trust, CSR is also influenced on customer
satisfaction (He and Li, 2011; Luo and Bhattacharya, 2006).Customer compares one organi-
zation to other organizations for healthier Customers compares one organization with other
organizations for healthier and judge sophisticated from the merchandise that finished by in-
formally answerable organization (Luo and Bhattacharya, 2006). Though this investigation
claims that nearby this investigation claims that nearby relationship affiliation with in CSR
and customer satisfaction. According to stakeholder theory (Freeman, 1984), CSR activities
build positive brand image not only for the customer as well for employee and stakeholders
also. CSR activities is basically awareness of a firm not only for products and service selling,
whenever firms deliver quality products and services to the customer, they become satisfied
and they also recommend others to visit there for purchase of the products.

H4. CSR is positively and directly related to customer satisfaction

2.7 Customer retention

Studies about customer retention were guided by commitment and trust theory which was
proposed by (Morgan and Hun, 1994), commitment and trust theory posits that customer re-
lationships can be established and maintained through gaining consumers trust and brand im-
age commitment which result from positive purchase experiences. According to Van Vuuren
et al., (2012), understanding the main constituents of trust and commitment is vital in order to
develop long term relationships with the customer. Morgan and Hunt (1994) added that the
relationship commitment-trust requires firms to provide superior products and services to
their customers and communicate the brand value also. Firm need to avoid from short term
services they should focus on long term bonds with their profitable customers. Thus, custom-
er tends to develop trust toward these firms and mutual commitment enables both parties to
fulfill their needs and run the business as well resolve the customer issues. Consequently, the
higher degree of trust and commitment directly leads to greater customer retention (Himan
and Hanaysha, 2015). Customer retention can be described as the process of building cus-
tomer loyalty toward a particular brand, thus having customers to purchase its products or
services with the passage of time (Cannie, 1994; Danish et al., 2015). Customer retention
emphasizes on repetitive patronage which is mainly associated with the customers repurchase
behavior and brand loyalty (Buttle, 2004). Moreover, a successful customer-brand relation-
ship attracts the consumers less to price promotions offered by the competitors. Anderson
and Sullivan (1990) also described that customer retention provides financial implications to
the organization because gaining new customers is costlier than maintaining existing ones
due to the expense that they spend on advertising and promotional activities to influence their
purchase behavior. Customer retention has largely been considered to be the main objective
for organization that focus on the relationship marketing strategy (Coviello et al., 2001; Gro-
noroos, 1991). For instance, retain customers are more willing to pay higher prices on pur-
chasing of products and service than new customers and they are less sensitive to the promo-
tional offer which are usually provided to add new ones (Ang and Buttle, 2006).

2.8 CSR and customer retention

Customer retention basically is repurchasing intention which defined customer intending to
buy product or services from the same supplier, so long as their recent purchases experience
has been satisfactory, and it ensure effective use of time and money (Johnson et al., 2001).It
implies a long-term relationship between the customer and the firm (Wilson,1995). Jose et
al., (2015 concluded the CSR activities are affect repurchasing intention positively. Some of
customers are influenced during purchasing of products and service they did not take deci-
sion but by corporate responsibility considerations although this a minority (Smith, 2003).

H5. CSR is positively and directly related to customer retention.

2.9 Customer satisfaction and retention
Customer satisfaction is measured in terms of the fulfillment of the gap between customer
actual experience and customer expectation. Customer retention refers to the ongoing rela-
tionship between the customer and organization (Ibojo& Asabi, 2015). Bowen and Chen
(2001) underline the importance of customer satisfaction in order to ensue customer reten-
tion. Subsequently, the following hypothesis is presumed.

H6.Customer satisfaction has a significant influence on customer retention

3. Research Model

Satisfaction

H4 H2
H6

H1 C-C
CSR Identification

H3
H5

Customer Retention

4. Methodology
4.1 Sample and data collection
The data were collected through a personal survey using a structured questionnaire during
November-December, 2020. Respondents were customers of automobile and automobile
employees who had working in 3S and 7S dealership from last 10 to 20 years. These dealer-
ships were located in 4 main cities of Pakistan, namely Rawalpindi, Lahore, Multan and Ka-
rachi. Data collection was done with the help of automotive employees which were working
in marketing and after sales departments. They were briefed about the research objectives
and design. The questionnaire items were reviewed and analyzed before distributing to par-
ticipants. Respondents were assured of confidentially of information they provided. The re-
spondents seemed to be aware of the CSR phenomenon and related issues.

4.2 Scale and Measures

Research was done on existing well-established scales and measures the proposed variables.
All the items were measured on a five-point Likert scale with measure ranging from strongly
disagree to strongly agree (1=strongly disagree, 5=strongly agree).

4.3 Measuring Instruments

The questionnaire was carried out with 94 automobile dealers to identify unclear items.

4.3.1 Corporate Social Responsibilities

CSR was measured with a seven-item scale taken from the study of Hull, C. E. and Rothen-
berg, S (2008). Current my “corporate social responsibility” meets with my standards. The
Cronbach alpha for this scale was found to be 0.876.

4.3.2 C-C identification

CCI was measured with a six-item scale taken from the study of Homburg, Wieseke, and
Hoyer (2009) and Mael and Ashforth (1992). .” The Cronbach alpha for this scale was found
to be 0.849.

4.3.3 Customer satisfaction

CS was measured using eight item scale taken from the study of Oliver (1997) and
Sirdeshmukh et al, (2002). .” The Cronbach alpha for this scale was found to be 0.913.

4.3.4 Customer retention

CR was measured with nine item scale taken from the study of Chaudhuri and Holbrook,
2001; Oliver, 1997; Pritchard et al, (1999) and Sirdeshmukh et al, (2002). .” The Cronbach
alpha for this scale was found to be 0.822.
5. Results and analysis

The below analysis conduct in this research;

1. Corporate Social Responsibility

2. Customer Company Identification
3. Customer Satisfaction
4. Customer Retention

5.1 Correlation, Reliabilities and Descriptive analysis

Means, standard deviation and correlation matrix are presented in Table 1.

Table 1: Reliabilities, Descriptive and correlations

Mean SD 1 2 3 4

1 CSR 3.71 .693 (.876)

2 CCI 3.73 .780 .576 ** (.849)

3 CS 3.59 .746 .772 ** .602 ** (.913)

4 CR 3.43 .647 .728 ** .525 ** .819 ** (.852)

N=208, Reliabilities in brackets, (**P<0.01), CSR = Corporate social responsibility, CCI=

Customer-Company Identification, CS= Customer Satisfaction, CR= Customer Retention
The table indicates that Corporate Social Responsibility has strong significant positive rela-
tionship with customer satisfaction (.746), p<0.01), which provides support for hypothesis 1.
Corporate social responsibility has positively and directly related to customer retention
(.647), p<0.01), which support for hypothesis 2. Customer satisfaction has significant strong
positive relation with customer retention (.913), p<0.01).
5.2 Regression Analysis

Table 2: Regression Analysis by Process macro

Direct and Indirect effect of CSR on CS and CR with Mediation of CCI

Direct and Indirect effect of CSR on CS and CR

Effect Se T P LLCI ULCI

0.6848 0.0558 12.274 .0000 .5748 0.7949

Indirect effect(s) of CSR on CCI through CS and CR

Effect BootSE BootLLCI BootULCI

MEAN CCI 0.1465 0.0438 0.0619 0.2346

Direct effect of CSR on CS

Effect Se t P LLCI ULCI

.5953 .0538 11.0676 .0000 .4892 .701

Indirect effect(s) of CS on CR

Effect BootSE BootLLCI BootULCI

MEAN CCI .0850 .0427 .0082 .1756

Table 2 shows that CSR has significant positive effect on CS and CR (β=0.68, p=0.0000)
which means hypothesis 1 is supported and there is a significant indirect effect of CSR on CS
and CR through CCI (β=0.14, Boot LLCI=0.06 so hypothesis 3 is supported that CCI medi-
ates the relationship between CSR on CS and CR. Similarly, CS has significant positive ef-
fect on CR (β=0.5953, P=0.0000) which means hypothesis 2 is supported. Also there is sig-
nificant indirect effect of CS on CR through CCI (β=0.0850, Boot LLCI=0.0082 and Boot
ULC= 0.1756 which means the hypothesis 4 is supported.

6. Discussion
The aims of this study were to first, investigated the influence of customer satisfaction on
customer retention. Second, to investigate the impact of mediating role of customer compa-
ny identification between corporate social responsibilities and customer satisfaction, cus-
tomer retention. And also assess the impact of customer satisfaction on customer retention.
By using a sample consist of 208 automobile employees, managers & employees working at
different departments in multiples cities of Pakistan. The result point out those corporate so-
cial responsibilities is significantly related to customer satisfaction & customer retention.
That is, hypothesis 1 is accepted, and also hypothesis 2 is tested and found positively related
to customer satisfaction, mean while hypothesis 3 which assumes that customer company
identification mediates the relationships between customer retention. hypothesis 4 tested and
found that corporate social responsibilities is directly related to customer satisfaction and al-
so hypothesis 5 is positively and directly related to customer retention. Hypothesis 6 impact
of customer satisfaction is positive significant influence on customer retention. The result of
the current study shows a direct and positive impact of CSR on CCI and as well on CS and
CR. On the strength of these results that companies pay more attention to CSR in order to
increase the activities which are beneficial of organization. If organization participates in
CSR activities then the company image will be highlighted in front of peoples and they will
think positive about the company image and its brands. CSR related activities also positively
impact on customer satisfaction and retention. However, companies do not consider custom-
er retention seriously in the absence of their profitability. In other words, companies take
three main considerations into their account to guarantee their customer satisfaction, cus-
tomer retention, customer loyalty and customer profitability. According to Singh (2016) re-
ported that the cost of satisfying one is less seven times than the cost required to attract new
customers.

7. Practical Implication
Consequence should be placed on firms have focus on Corporate social responsibility and
customer company identification practices for customer satisfaction and retention. It can be
done by implementation of CSR, which creates positive impact in the society about the firm
image and brand. If the customers are satisfied from the firm, it will be retain the customer
for a long time with the existing firm and firms will maximizing profits for these customers
as well.

8. Limitation and Direction for Future Research

This study was conducted only in one Automotive sector (Pak Suzuki Motor), future re-
searchers are suggested to target other automotive sectors as well. Sample size was small
208 nos. of respondents, so in future researchers will be use larger number of sample size. In
automotive sector only one company has been targeted, in future researchers are suggested
to target different sectors and companies to get more required data and information.

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Appendix

RIPHAH INTERNATIONAL UNIVERSITY, ISLAMABAD

FACULTY OF MANAGEMENT SCIENCES

Dear Respondent,

I am a student of MBA marketing and doing research entitled, "Impact of Corporate Social
Responsibility on Customer Satisfaction and Customer Retention under the mediating
role of Customer Company Identity. For this purpose, I need data collect from the different
respondents and you are one of the potential respondents of my study. It is request to you
please spare some of time from your busy schedule and fill this questioner in order to help
me in completing the research. It is assured that your responses will be kept confidential and
will not be used for any other purpose then academic research, and data will be analyzed only
aggregates. Participation is voluntary and we assured that your data will be kept confidential
and safe.

Muhammad Rafeeq
Researcher

DEMOGRAPHIC QUESTIONS
Multiple choices
1. Gender:

A. Male B. Female

2. Name___________________________

3. Age:

A. 20-30 B. 31-40 C. 41-50 D. 51 and above

4. Education Level:

A. Matric B. Inter C. Graduation D. Master E. M/S, PHD

5. Employment Status:

A. Employed B. Unemployed
6. Income:

A. 25k B. 26k-50k C. 51k-75k D. 76k-1lac E. 1lac and

above

7. Marital Status:

A. Married B. Unmarried

Scale: Responses to each item are measured on a five-point scale with the anchors labeled:
(1) Strongly disagree, (2) disagree, (3) neither disagree nor agree, (4) agree, (5) strongly
agree.
An “(R)” denotes a negatively phrased and reverse-scored item.

Section A
CORPORATE SOCIAL RESPOSIBLITY

1. Does our company do enough towards protecting the environment? 1 2 3 4 5

2. Do you believe that our company is a fair market participant? 1 2 3 4 5
Do you believe that our company is maintaining a good/positive image
3. 1 2 3 4 5
in public?
Does our company do enough to support cultural and charitable initia-
4. 1 2 3 4 5
tives and campaigns?
How satisfied are you with our company’s effort to secure the physi-
5. 1 2 3 4 5
cal/psychological health of its employees?
Overall, how satisfied are you with the way your company is taking re-
6. 1 2 3 4 5
sponsibility for its employees?
Overall, how satisfied are you with the way our company manages so-
7. 1 2 3 4 5
cial responsibility?

Hull, C. E. and Rothenberg, S. (2008). ‘Firm performance: the interactions of corporate

social performance with innovation and industry differentiation’. Strategic Manage-
ment Journal, 29, 781–9.

Section B
CUSTOMER-COMPANY IDENTIFICATION

1 When someone criticizes Suzuki Pakistan, it feels like a personal insult 1 2 3 4 5

2 I am very interested in what others think about Suzuki Pakistan 1 2 3 4 5
When I talk about Suzuki Pakistan, I usually say “we” rather than
3 1 2 3 4 5
“they.”
4 Suzuki Pakistan s’ successes are my successes. 1 2 3 4 5
When someone praises Suzuki Pakistan, it feels like a personal compli-
5 1 2 3 4 5
ment
6 If a story in the media criticized Suzuki Pakistan, I would feel embar- 1 2 3 4 5
 rassed.

Customer–Company Identification Based on Homburg, Wieseke, and Hoyer (2009) and

Mael and Ashforth (1992)

Section C
CUSTOMER SATISFACTION

1 The automobile has exceeded my highest expectations. 1 2 3 4 5

2 The automobile is among the best I could have bought or leased. 1 2 3 4 5
3 The automobile is exactly what I needed. 1 2 3 4 5
4 My choice to buy or lease this piece of automobile was a wise one 1 2 3 4 5
5 I am satisfied with my decision to buy or lease the piece of automobile. 1 2 3 4 5
6 I am sure that it was the right thing to do to buy or lease the automobile 1 2 3 4 5
7 Using this automobile has been a good experience 1 2 3 4 5
8 I. have been delighted with the automobile I am evaluating 1 2 3 4 5

(Oliver, 1997; Sirdeshmukh et al., 2002)

Section D
CUSTOMER RETENTION

I use automobile from the company I am evaluating because it is the best

1 1 2 3 4 5
choice for me
I consider myself to be a loyal patron of the manufacturer of automobile I am
2 1 2 3 4 5
evaluating.
3 I am committed to the manufacturer of automobile I am evaluating. 1 2 3 4 5
In the future, I would be willing to pay a higher price for automobile
4 1 2 3 4 5
from the manufacturer I am evaluating over competitive offerings.
I consider the manufacturer I am evaluating my first choice when buy-
5 1 2 3 4 5
ing/leasing automobile
If I had it to do all over again, I’d buy or lease automobile from a differ-
6 1 2 3 4 5
ent company
7 I intend to keep buying the automobile I am evaluating 1 2 3 4 5
I would not switch to a competitor, even if I had a problem with the
8 1 2 3 4 5
products/services of the automobile I am evaluating
I intend to purchase automobile from the manufacturer of the automo-
9 1 2 3 4 5
bile I am evaluating in the future
Customer Loyalty (Chaudhuri and Holbrook, 2001; Oliver, 1997; Pritchard et al., 1999;
Sirdeshmukh et al., 2002)