SlideShare a Scribd company logo
1 of 15
Download to read offline
Page 1 of 15
[Reference: Suntu Kumar Ghosh, Dr. Nazrul Islam & Amitava Bose Bapi. 92018). The Relationship
between CSR, PSQ and Behavioral Intentions of Hotel Customers in Bangladesh. M - Infiniti (Journal of
Management). Vol. 12(1):50-67]
The Relationship between CSR, PSQ and Behavioral
Intentions of Hotel Customers in Bangladesh
Suntu Kumar Ghosh
Assistant Professor of Marketing
School of Business, Uttara University, Dhaka, Bangladesh
Email: suntu_ghosh@yahoo.com
Dr. Nazrul Islam
Professor, School of Business, Uttara University, Dhaka, Bangladesh
Email: nazrulku@gmail.com
&
Amitava Bose Bapi
Assistant Professor, School of Business, Uttara University, Dhaka, Bangladesh
Email: amitav.bapi@gmail.com
Abstract
In recent years, hotel business became an important business in Bangladesh due to substantial
increase of customers in this industry. The reasons can be attributed by the increase in health
consciousness and social responsiveness of the customers. But the industry is not in a position to
fulfill the demands of the customers. Hence, this study aims at examining the extent of corporate
social responsibility (CSR) of the hotels that can influence perceived service quality (PSQ) and
behavioral intentions of the customers in this industry of Bangladesh. In order to identify and
measure the CSR activities, a quantitative approach has been applied, harnessing a survey
questionnaire among the hotel customers in Bangladesh. Three hundred hotel customers from 45
hotels located in Dhaka were interviewed with a structured questionnaire. Data analysis has been
performed by using Partial Least Squares - Structural Equation Modeling (PLS-SEM) method.
The results of the study confirm that the CSR activities have significant and positive relationship
with perceived service quality of the customers. Perceived service quality is also positively
associated with the behavioral intentions of the hotel customers. Finally, CSR demonstrated a
direct and positive relationship with the customers’ behavioral intentions in the hotel industry of
Bangladesh.
Keywords: Corporate social responsibility, Perceived service quality, Consumer behavioral
intention, Consumer studies, PLS SEM, Hotel industry in Bangladesh
Page 2 of 15
The Relationship between CSR, PSQ and Behavioral
Intentions of Hotel Customers in Bangladesh
1. Background
Most companies are struggling to survive in the current competitive market, as consumer
consumption patterns and perceptions towards organization activities change within developed
countries and increasingly in developing countries. Broadly, consumers and other stakeholders
have started to become more actively concerned about the effects of a company’s activities upon
various aspects of their lives and its performance within the wider community. A company’s
performance is largely judged by its impact on the environment and on society as a whole
(Sheikh and Beise -Zee, 2011). In light of this, alongside other business disciplines, marketing
can be recognized as the discipline which makes connections between the firm and its
surrounding environment (Vaaland et al., 2008).
As a concept and as a discipline of practice, marketing is constantly changing and evolving over
time. From the American Marketing Association’s 2007 definition “Marketing is the activity, set
of institutions, and processes for creating, communicating, delivering, and exchanging offerings
that have value for customers, clients, partners, and society at large”, we can conclude that
marketing’s focus has perhaps shifted from the traditional shareholder and customer orientation
focus towards a boarder more stakeholder-based orientation. According to Maignan and Ferrell
(2004), stakeholders of a company should be considered as partners, with marketers giving more
focus towards stakeholders’ values and norms. Such norms relate to a variety of marketing issues
such as sales practices, environmental protection, consumer rights, product safety, appropriate
information disclosure, the support of local communities, strengthening supplier relationships
and improving the quality of life of consumers and employees, as well as, other actors within the
market place. This can be interpreted as a central aspect of corporate social responsibility (CSR).
CSR, as a construct, includes a number of different aspects, from ethical, environmental, social
and sustainability attributes, which intersect different related concepts of marketing (e.g., societal
marketing, cause-related marketing, environmental marketing, socially responsible buying and
sustainable consumption) (Vaaland et al., 2008). In addition, marketing and CSR both consider
and focus on all of the important stakeholder groups that hold the firm responsible and
accountable for its actions.
In marketing, strategic CSR is particularly important, when compared to other CSR strategic
options (Vaaland et al., 2008). This is due to strategic CSR activity expenditures being viewed as
investments, with expectation that there will be long term returns for the business (Lantos, 2001,
2002). Marketers are therefore required to incorporate and adopt CSR within the development of
their marketing strategy and to encourage CSR to attain relevant marketing objectives (e.g.,
increase sales, brand equity, corporate image, enhance customer preference), in line with
stakeholder values and norms, which can result towards benefitting both companies and their
stakeholders (Grigore, 2011).
Page 3 of 15
Nowadays, CSR is becoming more regarded as a universal phenomenon (Carvalho et al., 2010)
and gaining greater recognition from both researchers and practitioners alike (Lee et al., 2012).
Within the today’s competitive environment, a number of companies are now actively
participating with CSR activities and integrating their CSR initiatives into corporate strategies.
Lai et al. (2010) noted that most companies today not only pay due attention to CSR issues, but
also actively participate in CSR activities due to the positive recognition effects of CSR
participation and the consequences of CSR omissions upon consumer behavior. To some, the
influence of CSR initiatives on customer attitudes remains subjective and only partially
empirically answered (Poolthong and Mandhachitara, 2009; Aguinis and Glavas, 2012), there is
still scarcity of facts about the reasons why organization involves in CSR activities, what would
be the outcome of CSR policies and actions on organization objectives and consumer behavior
outcomes, and the circumstances under which these outcomes are more or less likely to be
observed. To others, CSR can readily influence consumer perceptions towards value recognition
(Khan et al, 2015; Le and Ferguson, 2016).
Over the last decade in particular, CSR research has been more generally conducted across a
variety of service industries. For example, these have included: financial services (Khan et al.,
2009; Khan et al., 2015; Mandhachitara and Poolthong, 2011;McDonald and Lai,
2011;Poolthong and Mandhachitara, 2009) hospitals (Hansen et al., 2011); travel agencies
(Sheldon, 2011); airline services (Tsai and Hsu, 2008); higher education (Idowu, 2009); mobile
telephone services (Garcia de los Salmones et al., 2005); food services (Lee et al., 2012) ; hotels
(Henderson, 2007;Kabir, 2011; Le and Ferguson, 2016; Lee and Heo, 2009;Matev and
Assenova, 2012; Marin and Ruiz, 2007; Tsai et al., 2010); tourism (Guchait et al., 2011); tour
operators (Dodds and Kuehnel, 2010); life insurance companies (Hsu, 2012); aviation services
(Selvarajh et al., 2012) and theme parks (Holcomb et al., 2010). Moreover, CSR research has
been conducted in several countries. These include the USA (Hansen et al., 2011; Inoue and
Lee, 2011; Lee and Heo, 2009); Canada (Dodds and Kuehnel, 2010); Spain (Garcia de los
Salmones et al., 2005; Marin and Ruiz, 2007); UK (Idowu, 2009); France (Kakabadse and
Rozuel, 2006); Swaziland (Kabir, 2011); Bulgaria (Matev and Assenova, 2012); China (Tsai and
Hsu, 2008); South Korea (Lee et al., 2012); Taiwan (McDonald and Lai, 2011;Tsai et al., 2010);
Thailand (Mandhachitara and Poolthong, 2011); Malaysia (Selvarajh et al., 2012);Vietnam (Le
and Ferguson, 2016); Pakistan (Khan et al., 2015) and Bangladesh (Khan et al., 2009). It is
apparent that CSR is receiving distinctive assessment within theservice industries across the
world, with research emerging regarding the consumer perceptions towards CSR within Asia’s
hotel industry. No CSR research appears to have been conducted upon regarding CSR’s
perceived customer value within South Asia, notably from Bangladesh.
The roles of customer expectations and perceptions of CSR’s activities direct influence upon
perceived service quality (PSQ) have been identified within several studies (Garcia de los
Salmones et al., 2005; Mandhachitara and Poolthong, 2011; Poolthong and Mandhachitara,
2009; Senthikumar et al., 2011). From their survey research, a number of academics have
concluded that service quality leads to customer value and satisfaction, enhanced corporate
image and increased behavioral intentions (Cronin et al., 2000; Dabholkar et al., 2000; González
et al., 2007; Hu et al., 2009). Additionally, when investigating the relationships between service
quality, value, image and satisfaction at a Chinese telecoms company, Lai et al. (2009) found, in
their survey of one thousand customers, that service quality can directly influence perceived
Page 4 of 15
value and image perceptions and value, with image influencing satisfaction. Corporate image
was also detected as influencing value, with both customer satisfaction and value serving as
significant determinants of customer loyalty.
Although the important aspect of service quality and service quality measurement has received
increasing attention within the marketing literature, there has been limited research that has used
service quality concept for the hotel industry (Wilkins et al., 2007). Research on categorizing
hotel services has shown some distinguishing service attributes within the hotel industry, e.g.,
imprecise standards, short distribution channel, reliability and consistency, face to face
interaction and information exchange and fluctuating demand. This can cause difficulties in the
task of defining, delivering and measuring service quality (Akbaba, 2006). The role of PSQ in
the mind of consumers is a particularly important aspect for hotel industry (Akbaba, 2006;
Kayaman and Arasli, 2007; Tsang and Qu, 2000).
In summary, many service sectors, including hotels, appear to be engaging in CSR. It appears
significant research has been conducted, with some validation of the attraction/satisfaction
influence upon the customer as a service quality dimension. Interestingly though hotel industry
CSR research with respect to service quality and customer behavioral dimension is focused
within the EU and US, with some perceived value perceptions being detected, little to no studies
appear to have explored the PSQ and CSR interrelationships within South Asia’s hotel sector.
This study therefore will seek to explore the role of CSR and PSQ in determining behavioral
intentions of customers within Dhaka’s hotel industry.
Dhaka, as the capital city of Bangladesh, has been undergoing significant development over the
last decade. An expanding middle income domestic population is causing an upsurge in local,
domestic tourism in Bangladesh, and the hotel sector is responding by building new hotels and
accommodation facilities. The number of five-star, four star, and three star hotels are increasing
in Dhaka city, as well as expansions in other major cities of Bangladesh.
Dhaka city has about 45 hotels in the five-star, four-star and three star categories, with a good
number of similar kinds of hotels in the pipeline. Within the next two to five years, around 2,000
new rooms will be added within Dhaka city alone. In Dhaka city, around 80 percent of the hotel's
clientele are business travelers, followed by 10 percent airline crew and 10 percent leisure
travelers.
With the growing hotel sector making a significant contribution to the economic progress of
Bangladesh (Bangladesh Economic News, 2012), CSR activities within this sector could also
help attract foreign customers and contribute in towards an increasing domestic demand within
this sector also (Belal and Owen, 2007).It is still early days for CSR practices within the hotels
of Dhaka. To date, no research has been conducted to examine the roles of CSR with respect to
potential service quality attributes determining behavioral intentions of customers within the
hotel sector of Dhaka. Therefore, it is imperative to assess CSR’s contribution to the
development of behavioral intentions in the Dhaka hotel enterprises, and also to address the
potential influence of CSR initiatives in relation to the perception of Dhaka hotel image and
service quality. This study intends to fill this research gap.
Page 5 of 15
2. Objective of the Study
A major objective of this study is, therefore, to examine the role of CSR initiatives upon PSQ
and behavioral intentions of the customers from the viewpoint of Dhaka’s hotel industry. The
specific objectives are:
• To investigate the relationship between CSR and PSQ.
• To investigate the relationship between CSR and customer behavioral intentions.
• To help policy makers of the hotel industry to formulate and implement a hotel’s strategic
plan.
3. Hypothesis Development
From the introductory literature review, a number of hypotheses can be developed to help
structure the proposed research study.
3.1 CSR and PSQ
Consumer expectations and perceptions of CSR inventiveness can positively affect consumers’
attitude towards the firm service and it’s PSQ. Several studies found a direct and positive relation
between CSR initiatives and PSQ. Rummel (1999) posited and empirically tested the relationship
between the use of natural and environmental friendly ingredients in body shop and the
customer’s perceptions of its products. Garcia de los Salmones et al. (2005) findings indicated
that there is a direct and positive consequence between consumers’ perceptions of CSR behavior
and their valuation of the service quality. Poolthong and Mandhachitara (2009) found that CSR
expectations have positive and direct effects on PSQ. More recently, Mandhachitara and
Poolthong (2011) investigated the role of customer expectations of CSR activities towards repeat
patronage intentions and attitudinal loyalty within Bangkok’s retail banking sector and found a
positive and significant relationship between CSR and PSQ. Therefore
H1: CSR is positively related to PSQ.
3.2 CSR and Behavioral Intentions
Positive CSR initiatives can stimulate product trails and can enhance repeat purchase. Many
researchers agreed that CSR has a direct and indirect influence on consumer behavior (Berens et
al., 2005; Garcia de los Salmones et al., 2005; Guchait et al., 2011; McDonald and Lai, 2011;
Mohr et al., 2001). In their empirical examination of the role of CSR towards explaining
consumer behavior, Mohr et al. (2001) found that CSR exhibited a profound influence on
consumer purchasing behavior within the US. McDonald and Lai (2011) found that CSR
activities can exert strong, positive effects on customer behavioral intentions towards a bank.
Additionally, investigating the relationships among corporate associations, CSR and consumer
product responses within a financial services company, Berens et al. (2005), found that CSR had
a significant effect on both product attitudes and purchase intentions. More recently, Guchait et
al. (2011) investigated the influence of customer perceptions from CSR upon behavioral
intentions (patronage intentions, switching intentions and word of mouth) within the hospitality
industry. Their findings suggested that the consumer’s behavioral intentions are significantly
affected by the consumer’s perceptions of CSR. Consumers who are interested to purchase
products in the future tend to suggest others buy a product where they, themselves, found the
firm to be positively involved in CSR activities such as health, education, natural resource
management and the development of natural, safer ingredients within the product. Therefore
Page 6 of 15
H2: CSR is positively related to a customer’s behavioral intentions.
3.3 PSQ and Behavioral Intentions
Positive customer expectations and positive perceptions of service quality can have the combined
effect of positively reinforcing the customer’s behavior intention. Several studies, within
different industries (e.g., banking institutions, mobile communications companies), have
identified a direct and positive link between the service quality and customer’s behavior
intention (e.g., Lai et al., 2009; Nguyen and LeBlanc, 1998; Wang et al., 2003). Hu et al. (2009)
also identified a model that indicated high levels of quality service and superior customer value
leading to high customer satisfaction, enhanced corporate image, and ultimately, improved
customer retention.
H3: PSQ is positively related to a customer’s behavioral intentions.
4. Conceptual Framework of the Study
Based on the relevant literature review and hypothesized relationships, Figure 1 demonstrates the
proposed conceptual model.
Figure 1: Conceptual Framework of the Study
5. Research Methodology
5.1 Data Collection and Sampling Procedures
A self-administered questionnaire (with minor adaptations and modifications) was used to
examine the roles of CSR and PSQ towards determining the behavioral intentions of hotel
customers. A pilot test, based on 50 questionnaires, was conducted among hotel guests within
Bangladesh to assess any insignificant or difficult to interpret indicators so as to ensure that the
wordings of the questionnaire was clear. Some minor revisions were applied to avoid confusion
and to help increase the clarity of the questionnaire within the final study. Reliability analysis
will also be performed to test the internal consistency of each of the items using Cronbach’s
alpha coefficients. As recommended by Nunnally (1978), coefficients higher than 0.70 are
deemed acceptable.
CSR
PSQ Behavioral
intentions
H1
H2
H3
Page 7 of 15
This research focused on five-star, four-star, and three-star hotel industry segments for three
reasons. First, CSR and service quality is a crucially important aspect of the hotel industry as it
provides a good impression to customer. Second, all three hotel categories meet diversified
domestic and international customer needs and expectations. Finally, to a certain extent, the
customer is prepared potentially to pay an extra premium for a better service experience.
Data was collected from five-star, four- star, and three- star hotels located in Dhaka city from the
peak season December to February. Like many capital cities, hotels within Dhaka can divided
from five through to one-star hotel ratings, with the hotel rating being issued by that national
Bangladesh Parjatan Corporation. Currently, there are sixty-five hotels in Dhaka. Of these, forty-
five (almost 70%) have been recognized as five, four and three star hotels. Of this,
approximately, five (11%) 5-star, three 4-star (6.5%) and thirty-seven (82%) are 3-star hotels
((Hotelcombined, 2012).The target population for the survey related to all the clients who were
staying in the aforementioned hotels during period of research. In selecting target population, it
is assumed that the hotel clients of Dhaka city are more sensitive in service compared to other
regions of Dhaka. There are more than 100,000 clients accessing services from different hotels
operating in Dhaka each and every year (Hotelcombined, 2012). Purposeful client sampling was
initiated whilst conducting interviews with the questionnaire survey.
Partial least squares (PLS), a variance-based structural equation modeling (SEM) method were
used for data analysis. Three hundred sample clients were selected as appropriate for this study.
Hair et al. (2006) suggests that sample sizes within a range of 150 to 400 are appropriate for
PLS- SEM. The reason is that small sample sizes (i.e., less than 150) makes PLS-SEM unreliable
whereas large sample sizes (of more than 400) makes goodness –off-fit measures prone to
suggest a poor fit.
5.2 Measurement and Scaling
All of the measurement items for each of the constructs used within this study is adopted from
previous proven research. The questionnaire was designed within five parts, where each part
independently assessed CSR expectation, PSQ and behavioral intentions respectively, with the
last part measuring basic demographic details of the respondents. Apart from the demographic
information, app items-were measured using a five-point Likert scale.
5.2.1 Corporate Social Responsibility (CSR)
CSR is a diverse concept covering numerous dimensions, with different components
emphasized, depending on the type of service industry and the specific context. Based upon a
new survey application within Bangladesh’s hotel industry, alongside the context of the specific
research design, an 18-item measurement scale related to CSR activities were adopted and
modified from Garcia de los Salmones et al. (2005), Mandhachitara and Poolthong (2011) and
McDonald and Lai (2011) studies. All of these studies were considered suitable following
comparison with other studies. Their section was based on their previous research application fit
within the service sector, their design to collect data directly from consumers, and their
successful use of multivariate analysis techniques (i.e., SEM, MANOVA) within their data
analysis process.
Page 8 of 15
Within this study, the economic dimension of CSR was not considered as a relevant consumer-
based attribute for assessment. This was based on the assessment that the customer does not
necessarily recognize economic dimensions as explicitly important components of social
responsibility and that customer tend to give more emphasize towards non-economic dimensions
rather than economic dimensions (Garcia de los Salmones et al., 2005). Generally, all items are
measured on a five-point Likert scale from very low (1) to very high (5).
5.2.2 Perceived Service Quality (PSQ)
PSQ has been conceptualized as a multidimensional construct, but it has been operationalized
with different components depending upon the type of hotel service. SERVQUAL is the most
useful instrument for measuring service quality. This study has adopted the Akbaba (2006) 29-
item service quality attribute measurement scale which was developed and used specially for
hotels. Akbaba (2006) prepared a questionnaire adopted from the SERVQUAL instrument and
identified five service quality dimensions named as “tangibles, “adequacy in service supply”,
“understanding and caring”, “assurance”, and “ convenience” to measure service quality in
business hotels. All items were also measured on a five-point Likert scale from very low (1) to
very high (5).
5.2.3 Behavioral Intentions of the Customers
Based on the Zeithaml et al. (1996) definition, behavioral intentions within this study refers to a
hotel customer’s stated likelihood to return to the hotel, speak positive things regarding the hotel,
recommend the hotel to family, friends, and others in the future, spend more time with the hotel
and whether they would be prepared to pay more for their hotel stay. These five items were
adopted as measures for the behavioral intentions construct, based on modifications from the
studies of Han et al. (2009), Ryu et al. (2008), Cronin et al. (2000) and Zeithaml et al. (1996). All
items were measured on a five-point Likert scale.
5.3 Scale Dimensionality and Validation
In order to check scale dimensionality and validation of the four constructs of CSR expectations,
PSQ, corporate image and behavioral intentions, exploratory factor analysis (EFA) and
confirmatory factor analysis (CFA) were conducted. EFA was employed in order to examine the
structure of the data, and where required, to reduce the data. As illustrated in Table 1, according
to EFA results, the percentages of variance ranged from 61.95 percent to 79.95 percent. This is
higher than the suggested verge. The high Cronbach’s alpha results of 0.823 to 0.857 positively
indicate high internal consistency for each of the items.
Confirmatory factor analysis (CFA) was applied in order to test how sufficiently well the
different measured items represent the constructs of CSR expectations, PSQ, corporate image
and behavioral intentions. As a result, CFA tests the co-relational structure of a data set against a
hypothesized structure and, subsequently, rates the “goodness-of-fit”. Several goodness-of-fit
indices (i.e., Chi-Squared test, RMSEA, SRMR, GFI and AGFI) can be applied in order to test
convergent and divergent validity. A summary of the CFA results are shown in Table 2
Page 9 of 15
Latent construct No. of items Variance explained %
CSR 18 79.95 0.854
PSQ 29 61.95 0.857
Behavioral intentions 5 76.51 0.844
Table 1: Summary of EFA Results
X2
Df X2/df
P value GFI AGFI RMSEA SRMR
CSR expectations
All 18 items included 185.119 71 2.607 0.000 0.911 0.869 0.086 0.076
PSQ
All 29 items included 233.124 91 2.899 0.000 0.902 0.801 0.89 0.087
Table 2: Summary of CFA Results
6. Data Analysis
PLS SEM, a partial least squares variance-based structural equation modeling method is used for
this data analysis purpose. PLS SEM is considered as an appropriate approach in this study
because of its ability to test a series of multiple and interrelated dependence relationship at one
time (Hair et al., 2006). PLS SEM results are distributed into outer relations (or measurement
models), or inner relations (or hypothesis testings).
6.1 Outer Relations (Measurement Models)
As illustrated in Table 3, the loadings of each construct ranges from 0.749 to 0.907. This is
greater than the recommended minimum 0.71 threshold. The critical ratios (C.R.) exceed the t-
value of 1.96 (p<0.05). Since the composite reliabilities are greater than 0.70 and the average
variance extracts (AVEs) range from 0.606 to 0.799, the construct reliability of the measurement
model has been achieved. A summary of the PLS factor loadings and other measurement indices
are shown in Table 3.
6.2 Inner Relations or Hypothesis Testing
Critical ratios at levels greater than 1.96, p <0.05 indicate the significance of the structural path.
Individual R2
values are greater than 0.10 indicate a high relevance for the model. The path
coefficients and their critical ratios for each hypothesized relationship are shown in Figure 2.
Table 4 summarizes the result of hypothesis testing based on PLS analysis.
Construct Loadings Critical ratio
CSR expectation
(AVE=0.690, Composite reliability=0.870, Cronbach’s
alpha=0.776)
Community support (5 items)
Employee relations (4 items)
Product and service-oriented( 6 items)
Environmental support( 3 items)
0.774
0.808
0.813
0.799
24.889
20.828
37.071
19.833
Page 10 of 15
Perceived Service Quality
(AVE=0.606, Composite reliability=0.860, Cronbach’s
alpha=0.784)
Tangibles (8 items)
Adequacy in service supply (8 items)
Understanding and caring (6 items)
Assurance (4)
convenience (3)
0.829
0.851
0.786
0.793
0.789
51.456
25.779
21.236
25.307
19.871
Behavioral intentions
(AVE=0.799, Composite reliability=0.888, Cronbach’s
alpha=0.749)
Come back to the hotel in the future
Say positive things about the hotel
Recommend the hotel to friends or my others
Visit the hotel more frequently
Like to pay more for the hotel
0.883
0.907
0.785
0.786
0.749
46.514
70.791
16.784
28.277
18.973
Table 3: Summary of Measurement Models Results
7. Analysis and Interpretations
Fundamental to the success of this research study, all three of the hypothesized relationships
were supported by the analysis of the consumer study data gathered.
CSR was shown to have a positive, significant relationship with both perceived service quality
(B= 0.659, CR=8.722) and behavioral intentions (B= 0.221, CR= 4.108). As core considerations
within this research, both H1 and H2 are supported. Perceived service quality was verified as
illustrating significant relations towards behavioral intentions (B= 0.483; CR=6.204). Therefore,
H3 is supported.
All the significant path relationships verified within this research within Bangladesh is also
supported by previous research studies conducted in other countries. For example, Poolthong and
Mandhachitara (2009) and Garcia de los Salmones et al. (2005) have reported that CSR is
positively related to PSQ. The positive and significant link between CSR and behavioral
intentions is supported by McDonald and Lai (2011). The association between PSQ and
behavioral intentions is demonstrated in the studies of Nguyen and LeBlanc (1998) and Wang et
al. (2003).
Page 11 of 15
Figure 2: Graphical Model and Results
Hypothesis Independent Dependent CR R2
H1 CSR Perceived service
quality
0.659 8.722 0.434 Supported
H2 CSR Behavioral
intensions
0.221 4.108 0.280 Supported
H3 Perceived service
quality
Behavioral
intensions
0.483 6.204 0.310 Supported
Table 4: Result of hypothesis testing based on PLS analysis
8. Conclusions
Though the interest is growing, research on CSR and behavioral intentions of the customer is still
relatively low. This study builds on existing knowledge within the academic world as there is
general lack of research studies within this area. This study has incorporated CSR, perceived
serviced quality and behavioral intentions into one theoretical framework which indicates the
direct contributions from CSR upon the customer’s perception of service quality (PSQ) and
CSR’s direct influence upon the customer’s behavioral intentions. For practitioners, the findings
of the study will help policy strategy makers of the hotel industry to formulate and implement a
hotel’s strategic plan relevant to Bangladesh. The study has carried out in Bangladesh and data
were collected from five-star, four-star and three-star categories hotel in Dhaka city. So, the
findings will not be generalized for the entire hotel segment in Dhaka. However, there is an
ample scope to conduct further study on this important topic by taking more samples into
account for better and more precise results on these relationships.
CSR
PSQ
Behavioral
Intentions
H3 ( =0.483; CR=6.204)
R2
=0.434
R2
=0.310
R2
=0.280
H2 ( =0.221; CR=4.108)
H1 ( =0.659;
CR=8.722)
Page 12 of 15
References
Aguinis, H., and Glavas, A. (2012).What We Know and Don’t Know about Corporate Social
Responsibility: A Review and Research Agenda. Journal of Management, 38 (4), 932-
968.
Akbaba, A. (2006). Measuring service quality in the hotel industry: A study in a business hotel in
Turkey. Hospitality Management, 25, 170-192.
American Marketing Association (2007).Definition of Marketing. Available at
http://www.marketingpower.com/AboutAMA/Pages/DefinitionofMarketing.aspx(assesse
d on October 5, 2012).
Bangladesh Economic News (2012). Available at
http://bangladesheconomy.wordpress.com/category/leisuretourism/ (assessed on July 30,
2012).
Belal, A.R., and Owen, D.L. (2007).The views of corporate managers on the current state of, and
future prospects for, social reporting in Bangladesh. Accounting, Auditing &
Accountability Journal, 20(3), 472-494.
Berens, G., van Riel, C.B.M., and van Bruggen, G.H. (2005). Corporate associations and
consumer product responses: the moderating role of corporate brand dominance. Journal
of Marketing, 69, 35-48.
Bloemer, J., Ruyter, K.D., and Peeters, P. (1998).Investigating drivers of bank loyalty: the
complex relationship between image, service quality and satisfaction. International
Journal of Bank Marketing, 16(7), 276 – 286.
Carvalho, S. W., Sen, S., Mota, M.O., and Lima, R. C. (2010). Consumer Reactions to CSR: A
Brazilian Perspective. Journal of Business Ethics, 91, 291-310.
Cronin, J.J., Brady, M., and Hult, G. T. (2000).Assessing the Effects of Quality, Value, and
Customer Satisfaction on Consumer Behavioral Intentions in Service Environments.
Journal of Retailing, 76(2), 193–218.
Dabholkar, P.A., Shepherd, C.D., and Thorpe, D.I. (2000). A Comprehensive Framework for
Service Quality: An Investigation of Critical Conceptual and Measurement Issues
Through a Longitudinal Study. Journal of Retailing, 76(2), 139–173.
Dodds, R., and Kuehnel, J. (2010). CSR among Canadian mass tour operators: good awareness
but little action. International Journal of Contemporary Hospitality Management, 22 (2),
221 – 244.
Garcia de los Salmones, M. d. M., Crespo, A.H., and del Bosque, I.R. (2005). Influence of
corporate social responsibility on loyalty and valuation of services. Journal of Business
Ethics, 61 (4), 369-385.
González, M.E.A, Comesaña, L.R., and Brea, J.A.F. (2007).Assessing tourist behavioral
intentions through perceived service quality and customer satisfaction. Journal of
Business Research, 60, 153–160.
Grigore, G. F. (2011). Chapter 3: Corporate Social Responsibility and Marketing. Developments
in Corporate Governance and Responsibility, 2, 41-58.
Guchait, P., Anner, M., and Wu, L. (2011). Consumer Perceptions of Corporate Social
Responsibility of Service Firms: Impact on Customer Attitudes and Behavioral
Intentions, 16th
Graduate Students research Conference.
Hair, J.F., Black, W.C., Babin, B.J., Anderson, R.E., and Tatham, R.L. (2006).Multivariate Data
Analysis, 6th
ed, Pearson Prentice-Hall, International Edition, Upper Saddle River, NJ.
Page 13 of 15
Han, H., Hsu, L., and Lee, J. (2009).Empirical investigation of the roles of attitudes toward green
behaviors, overall image, gender, and age in hotel customers’ eco-friendly decision-
making process. International Journal of Hospitality Management, 28 (4), 519-528.
Hansen, S. D., Dunford, B.B., Boss, A.D., Boss, R.W., and Angermeier, I. (2011). Corporate
Social Responsibility and the Benefits of Employee Trust: A Cross-Disciplinary
Perspective. Journal of Business Ethics, 102 (1), 29-45.
Henderson, J. C.(2007). Corporate social responsibility and tourism: Hotel companies in Phuket,
Thailand, after the Indian Ocean tsunami. Hospitality Management, 26, 228-239.
Holcomb, J., Okumus, F., and Bilgihan, A. (2010). Corporate social responsibility: what are
the top three Orlando theme parks reporting?.Worldwide Hospitality and Tourism
Themes, 2 ( 3), 316 – 337.
Hotelcombined (2012). Available at http://www.hotelscombined.com/City/Dhaka_1.htm
(assessed on July29, 2012).
Hsu, K.T. (2012). The Advertising Effects of Corporate Social Responsibility on Corporate
Reputation and Brand Equity: Evidence from the Life Insurance Industry in Taiwan.
Journal of Business Ethics, 109, 189-201.
Hu, H., Kandampully, J., and Juwaheer, T.D.(2009). Relationships and impacts of service
quality, perceived value, customer satisfaction, and image: an empirical study. The
Service Industries Journal, 29 (2), 111-125.
Idowu, S. O. (2009). An Empirical Study of What Institutions of Higher Education in the UK
Consider to be Their Corporate Social Responsibility. Available at
http://ssrn.com/abstract=1403924( assessed on August 25, 2012).
Inoue, Y., and Lee, S. (2011). Effects of different dimensions of corporate social responsibility
on corporate financial performance in tourism-related industries. Tourism
Management,32, 790-804.
Kabir, M.H. (2011). Corporate social responsibility by Swaziland hotel industry. Procedia-
Social and Behavioral Sciences,25, 73-79.
Kakabadse, N. K., and Rozuel, C. (2006). Meaning of corporate social responsibility in a local
French hospital: a case study. Society and Business Review, 1 (1), 77 – 96.
Kayaman, R., and Arasli, H. (2007). Customer based brand equity: evidence from the hotel
industry. Managing Service Quality, 17 (1), 92 –109.
Khan, H.U.Z, Halabi, A.K., and Samy, M. (2009). Corporate social responsibility (CSR)
reporting: a study of selected banking companies in Bangladesh. Social Responsibility
Journal, 5 (3), 344 – 357.
Khan, Z., Ferguson, D., and Pérez, A. (2015).Customer responses to CSR in the Pakistani
banking industry. International Journal of Bank Marketing, 33 (4), 471-493.
Lai, F., Griffin, M., and Babin, B.J. (2009). High quality, value, image, and satisfaction create
loyalty as a Chinese telecom. Journal of Business Research, 62 (10), 980-986.
Lai, C.S., Chiu, C. J., Yang, C.F., and Pai, D.C. (2010). The Effects of Corporate Social
Responsibility on Brand Performance: The Mediating Effect of Industrial Brand Equity
and Corporate Reputation. Journal of Business Ethics, 95, 457-469.
Lantos, G.P. (2001).The boundaries of strategic corporate social responsibility. Journal of
Consumer Marketing, 18(7), 595– 632.
Lantos, G.P. (2002). The ethicality of altruistic corporate social responsibility. Journal of
Consumer Marketing, 19 (3), 205 – 232.
Page 14 of 15
Le, H.D., and Ferguson, D.L. (2016). Customers Relationship Enhancements from Corporate
Social Responsibility Activities Within the Hospitality Sector: Empirical Research from
Vietnam. Corporate Reputation Review, 19 (3), 244-262.
Lee, Y., Kim, Y., Lee, K.H., and Li, D. (2012). The impact of CSR on relationship quality and
relationship outcomes: A perspective of service employees. International Journal of
Hospitality Management, 31, 745-756.
Lee, S., and Heo, C. Y. (2009). Corporate social responsibility and customer satisfaction among
US publicly traded hotels and restaurants. International Journal of Hospitality
Management, 28, 635-637.
Maignan, I., and Ferrell, O.C. (2004). Corporate Social Responsibility and Marketing: An
Integrative Framework. Journal of the Academy of Marketing Science, 32 (1), 3-19.
Mandhachitara, R., and Poolthong, Y. (2011).A model of customer loyalty and corporate social
responsibility. Journal of Services Marketing, 25 (2), 122-133.
Marin, L. and Ruiz, S. (2007). ‘‘I Need You Too!’’ Corporate Identity Attractiveness for
Consumers and The Role of Social Responsibility. Journal of Business Ethics, 71, 245-
260.
Matev, D., and Assenova, M. (2012). Application of corporate social responsibility approach in
Bulgaria to support sustainable tourism development. Clean Technologies and
Environmental Policy.
McDonald, L. M., and Lai, C. H.(2011). Impact of corporate social responsibility initiatives on
Taiwanese banking customers. International Journal of Bank Marketing, 29 (1), 50 – 63.
Mohr, L.A., Webb, D.J., and Harris, K.E. (2001). Do Consumers Expect Companies to be
Socially Responsible? The Impact of Corporate Social Responsibility on Buying
Behavior. The Journal of Consumer Affairs, 35 (1), 45-72.
Nguyen, N., and LeBlanc, G. (1998).The mediating role of corporate image on customers’
retention decisions: an investigation in financial services. International Journal of Bank
Marketing, 16 (2), 52 – 65.
Nguyen, N., and LeBlanc, G. (2001).Corporate image and corporate reputation in customers’
retention decisions in service. Journal of Retailing and Consumer Services, 8 (4), 227-
236.
Nunnally, J.C. (1978).Psychometric Theory, McGraw-Hill, New York.
Park, J., Robertson, R., and Wu, C. (2004). The effect of airline service quality on passengers’
behavioral intentions. a Korean case study. Journal of Air Transport Management, 10 (6),
435-469.
Poolthong, Y., and Mandhachitara, R. (2009).Customer expectations of CSR, perceived service
quality and brand effect in Thai retail banking. International Journal of Bank Marketing,
27 (6), 408-427.
Rummell, T. (1999). What’s new at the body shop? Global Cosmetic Industry, 165 (5) 16-18.
Ryu, K., Han, H., and Kim, T. (2008). The relationships among overall quick-causal restaurant
image, perceived value, customer satisfaction, and behavioral intentions. International
Journal of Hospitality Management, 27, 459-469.
Selvarajh, T., Munusamy, J., Chelliah, S., and Pandian, S. (2012). An empirical study on
corporate social responsibility in Malaysian aviation industry: A case study. African
Journal of Business Management, 6 (8), 2919-2930.
Page 15 of 15
Senthikumar, N., Ananth, A., and Arulraj, A. (2011).Impact of corporate social responsibility on
customer satisfaction in banking service. African Journal of Business Management, 5 (7),
3028-3039.
Sheldon, P.J. (2011). An Exploratory Study of Corporate Social Responsibility in the U.S. Travel
Industry. Journal of Travel Research, 50 (4), 392-407.
Sheikh, S.R., and Beise-Zee, R. (2011).Corporate social responsibility or cause-related
marketing? The role of cause specificity of CSR. Journal of Consumer Marketing, 28 (1),
27-39.
Tsai, W. H., and Hsu, J.L. (2008). Corporate social responsibility programs choice and costs
assessment in the airline industry—A hybrid model. Journal of Air Transport
Management, 14 (4), 188-196.
Tsai, W. H., Hsu, J.L, Chen, C.H., Lin, W.R., and Chen, S.P. (2010).An integrated approach for
selecting corporate social responsibility programs and costs evaluation in the
international tourist hotel. International Journal of Hospitality Management, 29, 385-396
Tsang, N., and Qu, H. (2000). Service quality in China's hotel industry: a perspective from
tourists and hotel managers. International Journal of Contemporary Hospitality
Management, 12 (5), 316 – 326.
Vaaland, T.I., Heide, M., and Grønhaug, K. (2008). Corporate social responsibility: investigating
theory and research in the marketing context. European Journal of Marketing, 42 (9), 927
– 953.
Wang, Y., Lo, H., and Hui, Y.V. (2003). The antecedents of service quality and product quality
and their influences on bank reputation: evidence from the banking industry in China.
Managing Service Quality, 13(1), 72 – 83.
Wilkins, H., Merrilees, B., and Herington, C. (2007).Towards an understanding of total service
quality in hotels. International Journal of Hospitality Management, 26 (4), 840-853.
Zeithaml, V.A., Berry, L.L., and Parasuraman, A. (1996).The behavioral consequences of service
quality. Journal of Marketing, 60, 31-46.

More Related Content

Similar to The Relationship between CSR, PSQ and Behavioral Intentions of Hotel Customers in Bangladesh

CONCEPTUALTHEORETICAL PAPERCustomer engagement in service
CONCEPTUALTHEORETICAL PAPERCustomer engagement in serviceCONCEPTUALTHEORETICAL PAPERCustomer engagement in service
CONCEPTUALTHEORETICAL PAPERCustomer engagement in service
AlleneMcclendon878
 
Analysis of the effects of corporate social responsibility on
Analysis of the effects of corporate social responsibility onAnalysis of the effects of corporate social responsibility on
Analysis of the effects of corporate social responsibility on
Alexander Decker
 
Analysis of the effects of corporate social responsibility on
Analysis of the effects of corporate social responsibility onAnalysis of the effects of corporate social responsibility on
Analysis of the effects of corporate social responsibility on
Alexander Decker
 
Corp Soc Responsibility Env - 2022 - Shiri - Corporate social responsibility ...
Corp Soc Responsibility Env - 2022 - Shiri - Corporate social responsibility ...Corp Soc Responsibility Env - 2022 - Shiri - Corporate social responsibility ...
Corp Soc Responsibility Env - 2022 - Shiri - Corporate social responsibility ...
RizwanaHameed2
 
Factor Affecting Positive & Negative Word of Mouth in Restaurant Industry
Factor Affecting Positive & Negative Word of Mouth in Restaurant IndustryFactor Affecting Positive & Negative Word of Mouth in Restaurant Industry
Factor Affecting Positive & Negative Word of Mouth in Restaurant Industry
ijtsrd
 
Marketing Performance Analysis by Customer Relationship Marketing, Market Ori...
Marketing Performance Analysis by Customer Relationship Marketing, Market Ori...Marketing Performance Analysis by Customer Relationship Marketing, Market Ori...
Marketing Performance Analysis by Customer Relationship Marketing, Market Ori...
inventionjournals
 
Employees’ expectations from csr the case of master students
Employees’ expectations from csr  the case of master studentsEmployees’ expectations from csr  the case of master students
Employees’ expectations from csr the case of master students
barizah94
 
1216 March 2021Michelle, thorough review of how CSR act
1216 March 2021Michelle, thorough review of how CSR act1216 March 2021Michelle, thorough review of how CSR act
1216 March 2021Michelle, thorough review of how CSR act
BenitoSumpter862
 

Similar to The Relationship between CSR, PSQ and Behavioral Intentions of Hotel Customers in Bangladesh (20)

Importance of customer satisfaction in indian hotels on account of personal s...
Importance of customer satisfaction in indian hotels on account of personal s...Importance of customer satisfaction in indian hotels on account of personal s...
Importance of customer satisfaction in indian hotels on account of personal s...
 
Effect of Functional Service Quality on Customer Satisfaction and Image and t...
Effect of Functional Service Quality on Customer Satisfaction and Image and t...Effect of Functional Service Quality on Customer Satisfaction and Image and t...
Effect of Functional Service Quality on Customer Satisfaction and Image and t...
 
CONCEPTUALTHEORETICAL PAPERCustomer engagement in service
CONCEPTUALTHEORETICAL PAPERCustomer engagement in serviceCONCEPTUALTHEORETICAL PAPERCustomer engagement in service
CONCEPTUALTHEORETICAL PAPERCustomer engagement in service
 
Dr. Arun Mittal Marketing 3.0.pdf
Dr. Arun Mittal Marketing 3.0.pdfDr. Arun Mittal Marketing 3.0.pdf
Dr. Arun Mittal Marketing 3.0.pdf
 
mm bagali...... mba...... research......management......hrm......hrd............
mm bagali...... mba...... research......management......hrm......hrd............mm bagali...... mba...... research......management......hrm......hrd............
mm bagali...... mba...... research......management......hrm......hrd............
 
Impact of using relationship marketing strategies on customers loyalty study ...
Impact of using relationship marketing strategies on customers loyalty study ...Impact of using relationship marketing strategies on customers loyalty study ...
Impact of using relationship marketing strategies on customers loyalty study ...
 
presentation on how does it work for others yasir.pptx
presentation on how does it work for others yasir.pptxpresentation on how does it work for others yasir.pptx
presentation on how does it work for others yasir.pptx
 
Analysis of the effects of corporate social responsibility on
Analysis of the effects of corporate social responsibility onAnalysis of the effects of corporate social responsibility on
Analysis of the effects of corporate social responsibility on
 
Analysis of the effects of corporate social responsibility on
Analysis of the effects of corporate social responsibility onAnalysis of the effects of corporate social responsibility on
Analysis of the effects of corporate social responsibility on
 
artiekl 3.pdf
artiekl 3.pdfartiekl 3.pdf
artiekl 3.pdf
 
Sample of MSC research proposal
Sample of MSC research proposalSample of MSC research proposal
Sample of MSC research proposal
 
Corp Soc Responsibility Env - 2022 - Shiri - Corporate social responsibility ...
Corp Soc Responsibility Env - 2022 - Shiri - Corporate social responsibility ...Corp Soc Responsibility Env - 2022 - Shiri - Corporate social responsibility ...
Corp Soc Responsibility Env - 2022 - Shiri - Corporate social responsibility ...
 
Factor Affecting Positive & Negative Word of Mouth in Restaurant Industry
Factor Affecting Positive & Negative Word of Mouth in Restaurant IndustryFactor Affecting Positive & Negative Word of Mouth in Restaurant Industry
Factor Affecting Positive & Negative Word of Mouth in Restaurant Industry
 
10-1108_IJQSS-07-2016-0048.pdf
10-1108_IJQSS-07-2016-0048.pdf10-1108_IJQSS-07-2016-0048.pdf
10-1108_IJQSS-07-2016-0048.pdf
 
F0341037051
F0341037051F0341037051
F0341037051
 
The Role of Customer Relationship Management (CRM) in Improving Customer serv...
The Role of Customer Relationship Management (CRM) in Improving Customer serv...The Role of Customer Relationship Management (CRM) in Improving Customer serv...
The Role of Customer Relationship Management (CRM) in Improving Customer serv...
 
Marketing Performance Analysis by Customer Relationship Marketing, Market Ori...
Marketing Performance Analysis by Customer Relationship Marketing, Market Ori...Marketing Performance Analysis by Customer Relationship Marketing, Market Ori...
Marketing Performance Analysis by Customer Relationship Marketing, Market Ori...
 
International Journal of Business and Management Invention (IJBMI)
International Journal of Business and Management Invention (IJBMI)International Journal of Business and Management Invention (IJBMI)
International Journal of Business and Management Invention (IJBMI)
 
Employees’ expectations from csr the case of master students
Employees’ expectations from csr  the case of master studentsEmployees’ expectations from csr  the case of master students
Employees’ expectations from csr the case of master students
 
1216 March 2021Michelle, thorough review of how CSR act
1216 March 2021Michelle, thorough review of how CSR act1216 March 2021Michelle, thorough review of how CSR act
1216 March 2021Michelle, thorough review of how CSR act
 

More from Northern University Bangladesh

Leadership Behaviors of Women Entrepreneurs in SME Sector of Bangladesh
Leadership Behaviors of Women Entrepreneurs in SME Sector of BangladeshLeadership Behaviors of Women Entrepreneurs in SME Sector of Bangladesh
Leadership Behaviors of Women Entrepreneurs in SME Sector of Bangladesh
Northern University Bangladesh
 
A Study on Service Quality of the Bangladesh Police
A Study on Service Quality of the Bangladesh PoliceA Study on Service Quality of the Bangladesh Police
A Study on Service Quality of the Bangladesh Police
Northern University Bangladesh
 

More from Northern University Bangladesh (11)

Leadership Behaviors of Women Entrepreneurs in SME Sector of Bangladesh
Leadership Behaviors of Women Entrepreneurs in SME Sector of BangladeshLeadership Behaviors of Women Entrepreneurs in SME Sector of Bangladesh
Leadership Behaviors of Women Entrepreneurs in SME Sector of Bangladesh
 
Critical Factors for the Development of Women Entrepreneurship in Retail Busi...
Critical Factors for the Development of Women Entrepreneurship in Retail Busi...Critical Factors for the Development of Women Entrepreneurship in Retail Busi...
Critical Factors for the Development of Women Entrepreneurship in Retail Busi...
 
The Impact of Technological Change on Medium and Lower Skilled Textile and Ga...
The Impact of Technological Change on Medium and Lower Skilled Textile and Ga...The Impact of Technological Change on Medium and Lower Skilled Textile and Ga...
The Impact of Technological Change on Medium and Lower Skilled Textile and Ga...
 
Global Technological Change in a Labor Intensive Industry: Its Impact on Text...
Global Technological Change in a Labor Intensive Industry: Its Impact on Text...Global Technological Change in a Labor Intensive Industry: Its Impact on Text...
Global Technological Change in a Labor Intensive Industry: Its Impact on Text...
 
Impact of Effective Performance Appraisal Systems on Employee Motivation and ...
Impact of Effective Performance Appraisal Systems on Employee Motivation and ...Impact of Effective Performance Appraisal Systems on Employee Motivation and ...
Impact of Effective Performance Appraisal Systems on Employee Motivation and ...
 
Issues and Challenges of Information and Communication Technology (ICT) in SM...
Issues and Challenges of Information and Communication Technology (ICT) in SM...Issues and Challenges of Information and Communication Technology (ICT) in SM...
Issues and Challenges of Information and Communication Technology (ICT) in SM...
 
SERVICE REQUIREMENTS FOR THE AGED IN BANGLADESH
SERVICE REQUIREMENTS FOR THE AGED IN BANGLADESHSERVICE REQUIREMENTS FOR THE AGED IN BANGLADESH
SERVICE REQUIREMENTS FOR THE AGED IN BANGLADESH
 
A Study on Service Quality of the Bangladesh Police
A Study on Service Quality of the Bangladesh PoliceA Study on Service Quality of the Bangladesh Police
A Study on Service Quality of the Bangladesh Police
 
STRATEGIC MANAGEMENT ISSUES FOR ENTREPRENEURIAL SOFTWARE DEVELOPING COMPANIES...
STRATEGIC MANAGEMENT ISSUES FOR ENTREPRENEURIAL SOFTWARE DEVELOPING COMPANIES...STRATEGIC MANAGEMENT ISSUES FOR ENTREPRENEURIAL SOFTWARE DEVELOPING COMPANIES...
STRATEGIC MANAGEMENT ISSUES FOR ENTREPRENEURIAL SOFTWARE DEVELOPING COMPANIES...
 
STRATEGIES OF ENTREPRENEURIAL SOFTWARE DEVELOPING COMPANIES IN MALAYSIA AND B...
STRATEGIES OF ENTREPRENEURIAL SOFTWARE DEVELOPING COMPANIES IN MALAYSIA AND B...STRATEGIES OF ENTREPRENEURIAL SOFTWARE DEVELOPING COMPANIES IN MALAYSIA AND B...
STRATEGIES OF ENTREPRENEURIAL SOFTWARE DEVELOPING COMPANIES IN MALAYSIA AND B...
 
Curriculum Vitae of Professor Dr. Nazrul Islam
Curriculum Vitae of Professor Dr. Nazrul IslamCurriculum Vitae of Professor Dr. Nazrul Islam
Curriculum Vitae of Professor Dr. Nazrul Islam
 

Recently uploaded

Beyond the Codes_Repositioning towards sustainable development
Beyond the Codes_Repositioning towards sustainable developmentBeyond the Codes_Repositioning towards sustainable development
Beyond the Codes_Repositioning towards sustainable development
Nimot Muili
 
Abortion pills in Jeddah |• +966572737505 ] GET CYTOTEC
Abortion pills in Jeddah |• +966572737505 ] GET CYTOTECAbortion pills in Jeddah |• +966572737505 ] GET CYTOTEC
Abortion pills in Jeddah |• +966572737505 ] GET CYTOTEC
Abortion pills in Riyadh +966572737505 get cytotec
 
Agile Coaching Change Management Framework.pptx
Agile Coaching Change Management Framework.pptxAgile Coaching Change Management Framework.pptx
Agile Coaching Change Management Framework.pptx
alinstan901
 
internship thesis pakistan aeronautical complex kamra
internship thesis pakistan aeronautical complex kamrainternship thesis pakistan aeronautical complex kamra
internship thesis pakistan aeronautical complex kamra
AllTops
 
The Psychology Of Motivation - Richard Brown
The Psychology Of Motivation - Richard BrownThe Psychology Of Motivation - Richard Brown
The Psychology Of Motivation - Richard Brown
SandaliGurusinghe2
 

Recently uploaded (17)

Beyond the Codes_Repositioning towards sustainable development
Beyond the Codes_Repositioning towards sustainable developmentBeyond the Codes_Repositioning towards sustainable development
Beyond the Codes_Repositioning towards sustainable development
 
Abortion pills in Jeddah |• +966572737505 ] GET CYTOTEC
Abortion pills in Jeddah |• +966572737505 ] GET CYTOTECAbortion pills in Jeddah |• +966572737505 ] GET CYTOTEC
Abortion pills in Jeddah |• +966572737505 ] GET CYTOTEC
 
Safety T fire missions army field Artillery
Safety T fire missions army field ArtillerySafety T fire missions army field Artillery
Safety T fire missions army field Artillery
 
Agile Coaching Change Management Framework.pptx
Agile Coaching Change Management Framework.pptxAgile Coaching Change Management Framework.pptx
Agile Coaching Change Management Framework.pptx
 
Strategic Management, Vision Mission, Internal Analsysis
Strategic Management, Vision Mission, Internal AnalsysisStrategic Management, Vision Mission, Internal Analsysis
Strategic Management, Vision Mission, Internal Analsysis
 
Intro_University_Ranking_Introduction.pptx
Intro_University_Ranking_Introduction.pptxIntro_University_Ranking_Introduction.pptx
Intro_University_Ranking_Introduction.pptx
 
internship thesis pakistan aeronautical complex kamra
internship thesis pakistan aeronautical complex kamrainternship thesis pakistan aeronautical complex kamra
internship thesis pakistan aeronautical complex kamra
 
How Software Developers Destroy Business Value.pptx
How Software Developers Destroy Business Value.pptxHow Software Developers Destroy Business Value.pptx
How Software Developers Destroy Business Value.pptx
 
Leaders enhance communication by actively listening, providing constructive f...
Leaders enhance communication by actively listening, providing constructive f...Leaders enhance communication by actively listening, providing constructive f...
Leaders enhance communication by actively listening, providing constructive f...
 
Dealing with Poor Performance - get the full picture from 3C Performance Mana...
Dealing with Poor Performance - get the full picture from 3C Performance Mana...Dealing with Poor Performance - get the full picture from 3C Performance Mana...
Dealing with Poor Performance - get the full picture from 3C Performance Mana...
 
Marketing Management 16th edition by Philip Kotler test bank.docx
Marketing Management 16th edition by Philip Kotler test bank.docxMarketing Management 16th edition by Philip Kotler test bank.docx
Marketing Management 16th edition by Philip Kotler test bank.docx
 
W.H.Bender Quote 62 - Always strive to be a Hospitality Service professional
W.H.Bender Quote 62 - Always strive to be a Hospitality Service professionalW.H.Bender Quote 62 - Always strive to be a Hospitality Service professional
W.H.Bender Quote 62 - Always strive to be a Hospitality Service professional
 
Independent Escorts Vikaspuri / 9899900591 High Profile Escort Service in Delhi
Independent Escorts Vikaspuri  / 9899900591 High Profile Escort Service in DelhiIndependent Escorts Vikaspuri  / 9899900591 High Profile Escort Service in Delhi
Independent Escorts Vikaspuri / 9899900591 High Profile Escort Service in Delhi
 
digital Human resource management presentation.pdf
digital Human resource management presentation.pdfdigital Human resource management presentation.pdf
digital Human resource management presentation.pdf
 
Reviewing and summarization of university ranking system to.pptx
Reviewing and summarization of university ranking system  to.pptxReviewing and summarization of university ranking system  to.pptx
Reviewing and summarization of university ranking system to.pptx
 
The Psychology Of Motivation - Richard Brown
The Psychology Of Motivation - Richard BrownThe Psychology Of Motivation - Richard Brown
The Psychology Of Motivation - Richard Brown
 
International Ocean Transportation p.pdf
International Ocean Transportation p.pdfInternational Ocean Transportation p.pdf
International Ocean Transportation p.pdf
 

The Relationship between CSR, PSQ and Behavioral Intentions of Hotel Customers in Bangladesh

  • 1. Page 1 of 15 [Reference: Suntu Kumar Ghosh, Dr. Nazrul Islam & Amitava Bose Bapi. 92018). The Relationship between CSR, PSQ and Behavioral Intentions of Hotel Customers in Bangladesh. M - Infiniti (Journal of Management). Vol. 12(1):50-67] The Relationship between CSR, PSQ and Behavioral Intentions of Hotel Customers in Bangladesh Suntu Kumar Ghosh Assistant Professor of Marketing School of Business, Uttara University, Dhaka, Bangladesh Email: suntu_ghosh@yahoo.com Dr. Nazrul Islam Professor, School of Business, Uttara University, Dhaka, Bangladesh Email: nazrulku@gmail.com & Amitava Bose Bapi Assistant Professor, School of Business, Uttara University, Dhaka, Bangladesh Email: amitav.bapi@gmail.com Abstract In recent years, hotel business became an important business in Bangladesh due to substantial increase of customers in this industry. The reasons can be attributed by the increase in health consciousness and social responsiveness of the customers. But the industry is not in a position to fulfill the demands of the customers. Hence, this study aims at examining the extent of corporate social responsibility (CSR) of the hotels that can influence perceived service quality (PSQ) and behavioral intentions of the customers in this industry of Bangladesh. In order to identify and measure the CSR activities, a quantitative approach has been applied, harnessing a survey questionnaire among the hotel customers in Bangladesh. Three hundred hotel customers from 45 hotels located in Dhaka were interviewed with a structured questionnaire. Data analysis has been performed by using Partial Least Squares - Structural Equation Modeling (PLS-SEM) method. The results of the study confirm that the CSR activities have significant and positive relationship with perceived service quality of the customers. Perceived service quality is also positively associated with the behavioral intentions of the hotel customers. Finally, CSR demonstrated a direct and positive relationship with the customers’ behavioral intentions in the hotel industry of Bangladesh. Keywords: Corporate social responsibility, Perceived service quality, Consumer behavioral intention, Consumer studies, PLS SEM, Hotel industry in Bangladesh
  • 2. Page 2 of 15 The Relationship between CSR, PSQ and Behavioral Intentions of Hotel Customers in Bangladesh 1. Background Most companies are struggling to survive in the current competitive market, as consumer consumption patterns and perceptions towards organization activities change within developed countries and increasingly in developing countries. Broadly, consumers and other stakeholders have started to become more actively concerned about the effects of a company’s activities upon various aspects of their lives and its performance within the wider community. A company’s performance is largely judged by its impact on the environment and on society as a whole (Sheikh and Beise -Zee, 2011). In light of this, alongside other business disciplines, marketing can be recognized as the discipline which makes connections between the firm and its surrounding environment (Vaaland et al., 2008). As a concept and as a discipline of practice, marketing is constantly changing and evolving over time. From the American Marketing Association’s 2007 definition “Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large”, we can conclude that marketing’s focus has perhaps shifted from the traditional shareholder and customer orientation focus towards a boarder more stakeholder-based orientation. According to Maignan and Ferrell (2004), stakeholders of a company should be considered as partners, with marketers giving more focus towards stakeholders’ values and norms. Such norms relate to a variety of marketing issues such as sales practices, environmental protection, consumer rights, product safety, appropriate information disclosure, the support of local communities, strengthening supplier relationships and improving the quality of life of consumers and employees, as well as, other actors within the market place. This can be interpreted as a central aspect of corporate social responsibility (CSR). CSR, as a construct, includes a number of different aspects, from ethical, environmental, social and sustainability attributes, which intersect different related concepts of marketing (e.g., societal marketing, cause-related marketing, environmental marketing, socially responsible buying and sustainable consumption) (Vaaland et al., 2008). In addition, marketing and CSR both consider and focus on all of the important stakeholder groups that hold the firm responsible and accountable for its actions. In marketing, strategic CSR is particularly important, when compared to other CSR strategic options (Vaaland et al., 2008). This is due to strategic CSR activity expenditures being viewed as investments, with expectation that there will be long term returns for the business (Lantos, 2001, 2002). Marketers are therefore required to incorporate and adopt CSR within the development of their marketing strategy and to encourage CSR to attain relevant marketing objectives (e.g., increase sales, brand equity, corporate image, enhance customer preference), in line with stakeholder values and norms, which can result towards benefitting both companies and their stakeholders (Grigore, 2011).
  • 3. Page 3 of 15 Nowadays, CSR is becoming more regarded as a universal phenomenon (Carvalho et al., 2010) and gaining greater recognition from both researchers and practitioners alike (Lee et al., 2012). Within the today’s competitive environment, a number of companies are now actively participating with CSR activities and integrating their CSR initiatives into corporate strategies. Lai et al. (2010) noted that most companies today not only pay due attention to CSR issues, but also actively participate in CSR activities due to the positive recognition effects of CSR participation and the consequences of CSR omissions upon consumer behavior. To some, the influence of CSR initiatives on customer attitudes remains subjective and only partially empirically answered (Poolthong and Mandhachitara, 2009; Aguinis and Glavas, 2012), there is still scarcity of facts about the reasons why organization involves in CSR activities, what would be the outcome of CSR policies and actions on organization objectives and consumer behavior outcomes, and the circumstances under which these outcomes are more or less likely to be observed. To others, CSR can readily influence consumer perceptions towards value recognition (Khan et al, 2015; Le and Ferguson, 2016). Over the last decade in particular, CSR research has been more generally conducted across a variety of service industries. For example, these have included: financial services (Khan et al., 2009; Khan et al., 2015; Mandhachitara and Poolthong, 2011;McDonald and Lai, 2011;Poolthong and Mandhachitara, 2009) hospitals (Hansen et al., 2011); travel agencies (Sheldon, 2011); airline services (Tsai and Hsu, 2008); higher education (Idowu, 2009); mobile telephone services (Garcia de los Salmones et al., 2005); food services (Lee et al., 2012) ; hotels (Henderson, 2007;Kabir, 2011; Le and Ferguson, 2016; Lee and Heo, 2009;Matev and Assenova, 2012; Marin and Ruiz, 2007; Tsai et al., 2010); tourism (Guchait et al., 2011); tour operators (Dodds and Kuehnel, 2010); life insurance companies (Hsu, 2012); aviation services (Selvarajh et al., 2012) and theme parks (Holcomb et al., 2010). Moreover, CSR research has been conducted in several countries. These include the USA (Hansen et al., 2011; Inoue and Lee, 2011; Lee and Heo, 2009); Canada (Dodds and Kuehnel, 2010); Spain (Garcia de los Salmones et al., 2005; Marin and Ruiz, 2007); UK (Idowu, 2009); France (Kakabadse and Rozuel, 2006); Swaziland (Kabir, 2011); Bulgaria (Matev and Assenova, 2012); China (Tsai and Hsu, 2008); South Korea (Lee et al., 2012); Taiwan (McDonald and Lai, 2011;Tsai et al., 2010); Thailand (Mandhachitara and Poolthong, 2011); Malaysia (Selvarajh et al., 2012);Vietnam (Le and Ferguson, 2016); Pakistan (Khan et al., 2015) and Bangladesh (Khan et al., 2009). It is apparent that CSR is receiving distinctive assessment within theservice industries across the world, with research emerging regarding the consumer perceptions towards CSR within Asia’s hotel industry. No CSR research appears to have been conducted upon regarding CSR’s perceived customer value within South Asia, notably from Bangladesh. The roles of customer expectations and perceptions of CSR’s activities direct influence upon perceived service quality (PSQ) have been identified within several studies (Garcia de los Salmones et al., 2005; Mandhachitara and Poolthong, 2011; Poolthong and Mandhachitara, 2009; Senthikumar et al., 2011). From their survey research, a number of academics have concluded that service quality leads to customer value and satisfaction, enhanced corporate image and increased behavioral intentions (Cronin et al., 2000; Dabholkar et al., 2000; González et al., 2007; Hu et al., 2009). Additionally, when investigating the relationships between service quality, value, image and satisfaction at a Chinese telecoms company, Lai et al. (2009) found, in their survey of one thousand customers, that service quality can directly influence perceived
  • 4. Page 4 of 15 value and image perceptions and value, with image influencing satisfaction. Corporate image was also detected as influencing value, with both customer satisfaction and value serving as significant determinants of customer loyalty. Although the important aspect of service quality and service quality measurement has received increasing attention within the marketing literature, there has been limited research that has used service quality concept for the hotel industry (Wilkins et al., 2007). Research on categorizing hotel services has shown some distinguishing service attributes within the hotel industry, e.g., imprecise standards, short distribution channel, reliability and consistency, face to face interaction and information exchange and fluctuating demand. This can cause difficulties in the task of defining, delivering and measuring service quality (Akbaba, 2006). The role of PSQ in the mind of consumers is a particularly important aspect for hotel industry (Akbaba, 2006; Kayaman and Arasli, 2007; Tsang and Qu, 2000). In summary, many service sectors, including hotels, appear to be engaging in CSR. It appears significant research has been conducted, with some validation of the attraction/satisfaction influence upon the customer as a service quality dimension. Interestingly though hotel industry CSR research with respect to service quality and customer behavioral dimension is focused within the EU and US, with some perceived value perceptions being detected, little to no studies appear to have explored the PSQ and CSR interrelationships within South Asia’s hotel sector. This study therefore will seek to explore the role of CSR and PSQ in determining behavioral intentions of customers within Dhaka’s hotel industry. Dhaka, as the capital city of Bangladesh, has been undergoing significant development over the last decade. An expanding middle income domestic population is causing an upsurge in local, domestic tourism in Bangladesh, and the hotel sector is responding by building new hotels and accommodation facilities. The number of five-star, four star, and three star hotels are increasing in Dhaka city, as well as expansions in other major cities of Bangladesh. Dhaka city has about 45 hotels in the five-star, four-star and three star categories, with a good number of similar kinds of hotels in the pipeline. Within the next two to five years, around 2,000 new rooms will be added within Dhaka city alone. In Dhaka city, around 80 percent of the hotel's clientele are business travelers, followed by 10 percent airline crew and 10 percent leisure travelers. With the growing hotel sector making a significant contribution to the economic progress of Bangladesh (Bangladesh Economic News, 2012), CSR activities within this sector could also help attract foreign customers and contribute in towards an increasing domestic demand within this sector also (Belal and Owen, 2007).It is still early days for CSR practices within the hotels of Dhaka. To date, no research has been conducted to examine the roles of CSR with respect to potential service quality attributes determining behavioral intentions of customers within the hotel sector of Dhaka. Therefore, it is imperative to assess CSR’s contribution to the development of behavioral intentions in the Dhaka hotel enterprises, and also to address the potential influence of CSR initiatives in relation to the perception of Dhaka hotel image and service quality. This study intends to fill this research gap.
  • 5. Page 5 of 15 2. Objective of the Study A major objective of this study is, therefore, to examine the role of CSR initiatives upon PSQ and behavioral intentions of the customers from the viewpoint of Dhaka’s hotel industry. The specific objectives are: • To investigate the relationship between CSR and PSQ. • To investigate the relationship between CSR and customer behavioral intentions. • To help policy makers of the hotel industry to formulate and implement a hotel’s strategic plan. 3. Hypothesis Development From the introductory literature review, a number of hypotheses can be developed to help structure the proposed research study. 3.1 CSR and PSQ Consumer expectations and perceptions of CSR inventiveness can positively affect consumers’ attitude towards the firm service and it’s PSQ. Several studies found a direct and positive relation between CSR initiatives and PSQ. Rummel (1999) posited and empirically tested the relationship between the use of natural and environmental friendly ingredients in body shop and the customer’s perceptions of its products. Garcia de los Salmones et al. (2005) findings indicated that there is a direct and positive consequence between consumers’ perceptions of CSR behavior and their valuation of the service quality. Poolthong and Mandhachitara (2009) found that CSR expectations have positive and direct effects on PSQ. More recently, Mandhachitara and Poolthong (2011) investigated the role of customer expectations of CSR activities towards repeat patronage intentions and attitudinal loyalty within Bangkok’s retail banking sector and found a positive and significant relationship between CSR and PSQ. Therefore H1: CSR is positively related to PSQ. 3.2 CSR and Behavioral Intentions Positive CSR initiatives can stimulate product trails and can enhance repeat purchase. Many researchers agreed that CSR has a direct and indirect influence on consumer behavior (Berens et al., 2005; Garcia de los Salmones et al., 2005; Guchait et al., 2011; McDonald and Lai, 2011; Mohr et al., 2001). In their empirical examination of the role of CSR towards explaining consumer behavior, Mohr et al. (2001) found that CSR exhibited a profound influence on consumer purchasing behavior within the US. McDonald and Lai (2011) found that CSR activities can exert strong, positive effects on customer behavioral intentions towards a bank. Additionally, investigating the relationships among corporate associations, CSR and consumer product responses within a financial services company, Berens et al. (2005), found that CSR had a significant effect on both product attitudes and purchase intentions. More recently, Guchait et al. (2011) investigated the influence of customer perceptions from CSR upon behavioral intentions (patronage intentions, switching intentions and word of mouth) within the hospitality industry. Their findings suggested that the consumer’s behavioral intentions are significantly affected by the consumer’s perceptions of CSR. Consumers who are interested to purchase products in the future tend to suggest others buy a product where they, themselves, found the firm to be positively involved in CSR activities such as health, education, natural resource management and the development of natural, safer ingredients within the product. Therefore
  • 6. Page 6 of 15 H2: CSR is positively related to a customer’s behavioral intentions. 3.3 PSQ and Behavioral Intentions Positive customer expectations and positive perceptions of service quality can have the combined effect of positively reinforcing the customer’s behavior intention. Several studies, within different industries (e.g., banking institutions, mobile communications companies), have identified a direct and positive link between the service quality and customer’s behavior intention (e.g., Lai et al., 2009; Nguyen and LeBlanc, 1998; Wang et al., 2003). Hu et al. (2009) also identified a model that indicated high levels of quality service and superior customer value leading to high customer satisfaction, enhanced corporate image, and ultimately, improved customer retention. H3: PSQ is positively related to a customer’s behavioral intentions. 4. Conceptual Framework of the Study Based on the relevant literature review and hypothesized relationships, Figure 1 demonstrates the proposed conceptual model. Figure 1: Conceptual Framework of the Study 5. Research Methodology 5.1 Data Collection and Sampling Procedures A self-administered questionnaire (with minor adaptations and modifications) was used to examine the roles of CSR and PSQ towards determining the behavioral intentions of hotel customers. A pilot test, based on 50 questionnaires, was conducted among hotel guests within Bangladesh to assess any insignificant or difficult to interpret indicators so as to ensure that the wordings of the questionnaire was clear. Some minor revisions were applied to avoid confusion and to help increase the clarity of the questionnaire within the final study. Reliability analysis will also be performed to test the internal consistency of each of the items using Cronbach’s alpha coefficients. As recommended by Nunnally (1978), coefficients higher than 0.70 are deemed acceptable. CSR PSQ Behavioral intentions H1 H2 H3
  • 7. Page 7 of 15 This research focused on five-star, four-star, and three-star hotel industry segments for three reasons. First, CSR and service quality is a crucially important aspect of the hotel industry as it provides a good impression to customer. Second, all three hotel categories meet diversified domestic and international customer needs and expectations. Finally, to a certain extent, the customer is prepared potentially to pay an extra premium for a better service experience. Data was collected from five-star, four- star, and three- star hotels located in Dhaka city from the peak season December to February. Like many capital cities, hotels within Dhaka can divided from five through to one-star hotel ratings, with the hotel rating being issued by that national Bangladesh Parjatan Corporation. Currently, there are sixty-five hotels in Dhaka. Of these, forty- five (almost 70%) have been recognized as five, four and three star hotels. Of this, approximately, five (11%) 5-star, three 4-star (6.5%) and thirty-seven (82%) are 3-star hotels ((Hotelcombined, 2012).The target population for the survey related to all the clients who were staying in the aforementioned hotels during period of research. In selecting target population, it is assumed that the hotel clients of Dhaka city are more sensitive in service compared to other regions of Dhaka. There are more than 100,000 clients accessing services from different hotels operating in Dhaka each and every year (Hotelcombined, 2012). Purposeful client sampling was initiated whilst conducting interviews with the questionnaire survey. Partial least squares (PLS), a variance-based structural equation modeling (SEM) method were used for data analysis. Three hundred sample clients were selected as appropriate for this study. Hair et al. (2006) suggests that sample sizes within a range of 150 to 400 are appropriate for PLS- SEM. The reason is that small sample sizes (i.e., less than 150) makes PLS-SEM unreliable whereas large sample sizes (of more than 400) makes goodness –off-fit measures prone to suggest a poor fit. 5.2 Measurement and Scaling All of the measurement items for each of the constructs used within this study is adopted from previous proven research. The questionnaire was designed within five parts, where each part independently assessed CSR expectation, PSQ and behavioral intentions respectively, with the last part measuring basic demographic details of the respondents. Apart from the demographic information, app items-were measured using a five-point Likert scale. 5.2.1 Corporate Social Responsibility (CSR) CSR is a diverse concept covering numerous dimensions, with different components emphasized, depending on the type of service industry and the specific context. Based upon a new survey application within Bangladesh’s hotel industry, alongside the context of the specific research design, an 18-item measurement scale related to CSR activities were adopted and modified from Garcia de los Salmones et al. (2005), Mandhachitara and Poolthong (2011) and McDonald and Lai (2011) studies. All of these studies were considered suitable following comparison with other studies. Their section was based on their previous research application fit within the service sector, their design to collect data directly from consumers, and their successful use of multivariate analysis techniques (i.e., SEM, MANOVA) within their data analysis process.
  • 8. Page 8 of 15 Within this study, the economic dimension of CSR was not considered as a relevant consumer- based attribute for assessment. This was based on the assessment that the customer does not necessarily recognize economic dimensions as explicitly important components of social responsibility and that customer tend to give more emphasize towards non-economic dimensions rather than economic dimensions (Garcia de los Salmones et al., 2005). Generally, all items are measured on a five-point Likert scale from very low (1) to very high (5). 5.2.2 Perceived Service Quality (PSQ) PSQ has been conceptualized as a multidimensional construct, but it has been operationalized with different components depending upon the type of hotel service. SERVQUAL is the most useful instrument for measuring service quality. This study has adopted the Akbaba (2006) 29- item service quality attribute measurement scale which was developed and used specially for hotels. Akbaba (2006) prepared a questionnaire adopted from the SERVQUAL instrument and identified five service quality dimensions named as “tangibles, “adequacy in service supply”, “understanding and caring”, “assurance”, and “ convenience” to measure service quality in business hotels. All items were also measured on a five-point Likert scale from very low (1) to very high (5). 5.2.3 Behavioral Intentions of the Customers Based on the Zeithaml et al. (1996) definition, behavioral intentions within this study refers to a hotel customer’s stated likelihood to return to the hotel, speak positive things regarding the hotel, recommend the hotel to family, friends, and others in the future, spend more time with the hotel and whether they would be prepared to pay more for their hotel stay. These five items were adopted as measures for the behavioral intentions construct, based on modifications from the studies of Han et al. (2009), Ryu et al. (2008), Cronin et al. (2000) and Zeithaml et al. (1996). All items were measured on a five-point Likert scale. 5.3 Scale Dimensionality and Validation In order to check scale dimensionality and validation of the four constructs of CSR expectations, PSQ, corporate image and behavioral intentions, exploratory factor analysis (EFA) and confirmatory factor analysis (CFA) were conducted. EFA was employed in order to examine the structure of the data, and where required, to reduce the data. As illustrated in Table 1, according to EFA results, the percentages of variance ranged from 61.95 percent to 79.95 percent. This is higher than the suggested verge. The high Cronbach’s alpha results of 0.823 to 0.857 positively indicate high internal consistency for each of the items. Confirmatory factor analysis (CFA) was applied in order to test how sufficiently well the different measured items represent the constructs of CSR expectations, PSQ, corporate image and behavioral intentions. As a result, CFA tests the co-relational structure of a data set against a hypothesized structure and, subsequently, rates the “goodness-of-fit”. Several goodness-of-fit indices (i.e., Chi-Squared test, RMSEA, SRMR, GFI and AGFI) can be applied in order to test convergent and divergent validity. A summary of the CFA results are shown in Table 2
  • 9. Page 9 of 15 Latent construct No. of items Variance explained % CSR 18 79.95 0.854 PSQ 29 61.95 0.857 Behavioral intentions 5 76.51 0.844 Table 1: Summary of EFA Results X2 Df X2/df P value GFI AGFI RMSEA SRMR CSR expectations All 18 items included 185.119 71 2.607 0.000 0.911 0.869 0.086 0.076 PSQ All 29 items included 233.124 91 2.899 0.000 0.902 0.801 0.89 0.087 Table 2: Summary of CFA Results 6. Data Analysis PLS SEM, a partial least squares variance-based structural equation modeling method is used for this data analysis purpose. PLS SEM is considered as an appropriate approach in this study because of its ability to test a series of multiple and interrelated dependence relationship at one time (Hair et al., 2006). PLS SEM results are distributed into outer relations (or measurement models), or inner relations (or hypothesis testings). 6.1 Outer Relations (Measurement Models) As illustrated in Table 3, the loadings of each construct ranges from 0.749 to 0.907. This is greater than the recommended minimum 0.71 threshold. The critical ratios (C.R.) exceed the t- value of 1.96 (p<0.05). Since the composite reliabilities are greater than 0.70 and the average variance extracts (AVEs) range from 0.606 to 0.799, the construct reliability of the measurement model has been achieved. A summary of the PLS factor loadings and other measurement indices are shown in Table 3. 6.2 Inner Relations or Hypothesis Testing Critical ratios at levels greater than 1.96, p <0.05 indicate the significance of the structural path. Individual R2 values are greater than 0.10 indicate a high relevance for the model. The path coefficients and their critical ratios for each hypothesized relationship are shown in Figure 2. Table 4 summarizes the result of hypothesis testing based on PLS analysis. Construct Loadings Critical ratio CSR expectation (AVE=0.690, Composite reliability=0.870, Cronbach’s alpha=0.776) Community support (5 items) Employee relations (4 items) Product and service-oriented( 6 items) Environmental support( 3 items) 0.774 0.808 0.813 0.799 24.889 20.828 37.071 19.833
  • 10. Page 10 of 15 Perceived Service Quality (AVE=0.606, Composite reliability=0.860, Cronbach’s alpha=0.784) Tangibles (8 items) Adequacy in service supply (8 items) Understanding and caring (6 items) Assurance (4) convenience (3) 0.829 0.851 0.786 0.793 0.789 51.456 25.779 21.236 25.307 19.871 Behavioral intentions (AVE=0.799, Composite reliability=0.888, Cronbach’s alpha=0.749) Come back to the hotel in the future Say positive things about the hotel Recommend the hotel to friends or my others Visit the hotel more frequently Like to pay more for the hotel 0.883 0.907 0.785 0.786 0.749 46.514 70.791 16.784 28.277 18.973 Table 3: Summary of Measurement Models Results 7. Analysis and Interpretations Fundamental to the success of this research study, all three of the hypothesized relationships were supported by the analysis of the consumer study data gathered. CSR was shown to have a positive, significant relationship with both perceived service quality (B= 0.659, CR=8.722) and behavioral intentions (B= 0.221, CR= 4.108). As core considerations within this research, both H1 and H2 are supported. Perceived service quality was verified as illustrating significant relations towards behavioral intentions (B= 0.483; CR=6.204). Therefore, H3 is supported. All the significant path relationships verified within this research within Bangladesh is also supported by previous research studies conducted in other countries. For example, Poolthong and Mandhachitara (2009) and Garcia de los Salmones et al. (2005) have reported that CSR is positively related to PSQ. The positive and significant link between CSR and behavioral intentions is supported by McDonald and Lai (2011). The association between PSQ and behavioral intentions is demonstrated in the studies of Nguyen and LeBlanc (1998) and Wang et al. (2003).
  • 11. Page 11 of 15 Figure 2: Graphical Model and Results Hypothesis Independent Dependent CR R2 H1 CSR Perceived service quality 0.659 8.722 0.434 Supported H2 CSR Behavioral intensions 0.221 4.108 0.280 Supported H3 Perceived service quality Behavioral intensions 0.483 6.204 0.310 Supported Table 4: Result of hypothesis testing based on PLS analysis 8. Conclusions Though the interest is growing, research on CSR and behavioral intentions of the customer is still relatively low. This study builds on existing knowledge within the academic world as there is general lack of research studies within this area. This study has incorporated CSR, perceived serviced quality and behavioral intentions into one theoretical framework which indicates the direct contributions from CSR upon the customer’s perception of service quality (PSQ) and CSR’s direct influence upon the customer’s behavioral intentions. For practitioners, the findings of the study will help policy strategy makers of the hotel industry to formulate and implement a hotel’s strategic plan relevant to Bangladesh. The study has carried out in Bangladesh and data were collected from five-star, four-star and three-star categories hotel in Dhaka city. So, the findings will not be generalized for the entire hotel segment in Dhaka. However, there is an ample scope to conduct further study on this important topic by taking more samples into account for better and more precise results on these relationships. CSR PSQ Behavioral Intentions H3 ( =0.483; CR=6.204) R2 =0.434 R2 =0.310 R2 =0.280 H2 ( =0.221; CR=4.108) H1 ( =0.659; CR=8.722)
  • 12. Page 12 of 15 References Aguinis, H., and Glavas, A. (2012).What We Know and Don’t Know about Corporate Social Responsibility: A Review and Research Agenda. Journal of Management, 38 (4), 932- 968. Akbaba, A. (2006). Measuring service quality in the hotel industry: A study in a business hotel in Turkey. Hospitality Management, 25, 170-192. American Marketing Association (2007).Definition of Marketing. Available at http://www.marketingpower.com/AboutAMA/Pages/DefinitionofMarketing.aspx(assesse d on October 5, 2012). Bangladesh Economic News (2012). Available at http://bangladesheconomy.wordpress.com/category/leisuretourism/ (assessed on July 30, 2012). Belal, A.R., and Owen, D.L. (2007).The views of corporate managers on the current state of, and future prospects for, social reporting in Bangladesh. Accounting, Auditing & Accountability Journal, 20(3), 472-494. Berens, G., van Riel, C.B.M., and van Bruggen, G.H. (2005). Corporate associations and consumer product responses: the moderating role of corporate brand dominance. Journal of Marketing, 69, 35-48. Bloemer, J., Ruyter, K.D., and Peeters, P. (1998).Investigating drivers of bank loyalty: the complex relationship between image, service quality and satisfaction. International Journal of Bank Marketing, 16(7), 276 – 286. Carvalho, S. W., Sen, S., Mota, M.O., and Lima, R. C. (2010). Consumer Reactions to CSR: A Brazilian Perspective. Journal of Business Ethics, 91, 291-310. Cronin, J.J., Brady, M., and Hult, G. T. (2000).Assessing the Effects of Quality, Value, and Customer Satisfaction on Consumer Behavioral Intentions in Service Environments. Journal of Retailing, 76(2), 193–218. Dabholkar, P.A., Shepherd, C.D., and Thorpe, D.I. (2000). A Comprehensive Framework for Service Quality: An Investigation of Critical Conceptual and Measurement Issues Through a Longitudinal Study. Journal of Retailing, 76(2), 139–173. Dodds, R., and Kuehnel, J. (2010). CSR among Canadian mass tour operators: good awareness but little action. International Journal of Contemporary Hospitality Management, 22 (2), 221 – 244. Garcia de los Salmones, M. d. M., Crespo, A.H., and del Bosque, I.R. (2005). Influence of corporate social responsibility on loyalty and valuation of services. Journal of Business Ethics, 61 (4), 369-385. González, M.E.A, Comesaña, L.R., and Brea, J.A.F. (2007).Assessing tourist behavioral intentions through perceived service quality and customer satisfaction. Journal of Business Research, 60, 153–160. Grigore, G. F. (2011). Chapter 3: Corporate Social Responsibility and Marketing. Developments in Corporate Governance and Responsibility, 2, 41-58. Guchait, P., Anner, M., and Wu, L. (2011). Consumer Perceptions of Corporate Social Responsibility of Service Firms: Impact on Customer Attitudes and Behavioral Intentions, 16th Graduate Students research Conference. Hair, J.F., Black, W.C., Babin, B.J., Anderson, R.E., and Tatham, R.L. (2006).Multivariate Data Analysis, 6th ed, Pearson Prentice-Hall, International Edition, Upper Saddle River, NJ.
  • 13. Page 13 of 15 Han, H., Hsu, L., and Lee, J. (2009).Empirical investigation of the roles of attitudes toward green behaviors, overall image, gender, and age in hotel customers’ eco-friendly decision- making process. International Journal of Hospitality Management, 28 (4), 519-528. Hansen, S. D., Dunford, B.B., Boss, A.D., Boss, R.W., and Angermeier, I. (2011). Corporate Social Responsibility and the Benefits of Employee Trust: A Cross-Disciplinary Perspective. Journal of Business Ethics, 102 (1), 29-45. Henderson, J. C.(2007). Corporate social responsibility and tourism: Hotel companies in Phuket, Thailand, after the Indian Ocean tsunami. Hospitality Management, 26, 228-239. Holcomb, J., Okumus, F., and Bilgihan, A. (2010). Corporate social responsibility: what are the top three Orlando theme parks reporting?.Worldwide Hospitality and Tourism Themes, 2 ( 3), 316 – 337. Hotelcombined (2012). Available at http://www.hotelscombined.com/City/Dhaka_1.htm (assessed on July29, 2012). Hsu, K.T. (2012). The Advertising Effects of Corporate Social Responsibility on Corporate Reputation and Brand Equity: Evidence from the Life Insurance Industry in Taiwan. Journal of Business Ethics, 109, 189-201. Hu, H., Kandampully, J., and Juwaheer, T.D.(2009). Relationships and impacts of service quality, perceived value, customer satisfaction, and image: an empirical study. The Service Industries Journal, 29 (2), 111-125. Idowu, S. O. (2009). An Empirical Study of What Institutions of Higher Education in the UK Consider to be Their Corporate Social Responsibility. Available at http://ssrn.com/abstract=1403924( assessed on August 25, 2012). Inoue, Y., and Lee, S. (2011). Effects of different dimensions of corporate social responsibility on corporate financial performance in tourism-related industries. Tourism Management,32, 790-804. Kabir, M.H. (2011). Corporate social responsibility by Swaziland hotel industry. Procedia- Social and Behavioral Sciences,25, 73-79. Kakabadse, N. K., and Rozuel, C. (2006). Meaning of corporate social responsibility in a local French hospital: a case study. Society and Business Review, 1 (1), 77 – 96. Kayaman, R., and Arasli, H. (2007). Customer based brand equity: evidence from the hotel industry. Managing Service Quality, 17 (1), 92 –109. Khan, H.U.Z, Halabi, A.K., and Samy, M. (2009). Corporate social responsibility (CSR) reporting: a study of selected banking companies in Bangladesh. Social Responsibility Journal, 5 (3), 344 – 357. Khan, Z., Ferguson, D., and Pérez, A. (2015).Customer responses to CSR in the Pakistani banking industry. International Journal of Bank Marketing, 33 (4), 471-493. Lai, F., Griffin, M., and Babin, B.J. (2009). High quality, value, image, and satisfaction create loyalty as a Chinese telecom. Journal of Business Research, 62 (10), 980-986. Lai, C.S., Chiu, C. J., Yang, C.F., and Pai, D.C. (2010). The Effects of Corporate Social Responsibility on Brand Performance: The Mediating Effect of Industrial Brand Equity and Corporate Reputation. Journal of Business Ethics, 95, 457-469. Lantos, G.P. (2001).The boundaries of strategic corporate social responsibility. Journal of Consumer Marketing, 18(7), 595– 632. Lantos, G.P. (2002). The ethicality of altruistic corporate social responsibility. Journal of Consumer Marketing, 19 (3), 205 – 232.
  • 14. Page 14 of 15 Le, H.D., and Ferguson, D.L. (2016). Customers Relationship Enhancements from Corporate Social Responsibility Activities Within the Hospitality Sector: Empirical Research from Vietnam. Corporate Reputation Review, 19 (3), 244-262. Lee, Y., Kim, Y., Lee, K.H., and Li, D. (2012). The impact of CSR on relationship quality and relationship outcomes: A perspective of service employees. International Journal of Hospitality Management, 31, 745-756. Lee, S., and Heo, C. Y. (2009). Corporate social responsibility and customer satisfaction among US publicly traded hotels and restaurants. International Journal of Hospitality Management, 28, 635-637. Maignan, I., and Ferrell, O.C. (2004). Corporate Social Responsibility and Marketing: An Integrative Framework. Journal of the Academy of Marketing Science, 32 (1), 3-19. Mandhachitara, R., and Poolthong, Y. (2011).A model of customer loyalty and corporate social responsibility. Journal of Services Marketing, 25 (2), 122-133. Marin, L. and Ruiz, S. (2007). ‘‘I Need You Too!’’ Corporate Identity Attractiveness for Consumers and The Role of Social Responsibility. Journal of Business Ethics, 71, 245- 260. Matev, D., and Assenova, M. (2012). Application of corporate social responsibility approach in Bulgaria to support sustainable tourism development. Clean Technologies and Environmental Policy. McDonald, L. M., and Lai, C. H.(2011). Impact of corporate social responsibility initiatives on Taiwanese banking customers. International Journal of Bank Marketing, 29 (1), 50 – 63. Mohr, L.A., Webb, D.J., and Harris, K.E. (2001). Do Consumers Expect Companies to be Socially Responsible? The Impact of Corporate Social Responsibility on Buying Behavior. The Journal of Consumer Affairs, 35 (1), 45-72. Nguyen, N., and LeBlanc, G. (1998).The mediating role of corporate image on customers’ retention decisions: an investigation in financial services. International Journal of Bank Marketing, 16 (2), 52 – 65. Nguyen, N., and LeBlanc, G. (2001).Corporate image and corporate reputation in customers’ retention decisions in service. Journal of Retailing and Consumer Services, 8 (4), 227- 236. Nunnally, J.C. (1978).Psychometric Theory, McGraw-Hill, New York. Park, J., Robertson, R., and Wu, C. (2004). The effect of airline service quality on passengers’ behavioral intentions. a Korean case study. Journal of Air Transport Management, 10 (6), 435-469. Poolthong, Y., and Mandhachitara, R. (2009).Customer expectations of CSR, perceived service quality and brand effect in Thai retail banking. International Journal of Bank Marketing, 27 (6), 408-427. Rummell, T. (1999). What’s new at the body shop? Global Cosmetic Industry, 165 (5) 16-18. Ryu, K., Han, H., and Kim, T. (2008). The relationships among overall quick-causal restaurant image, perceived value, customer satisfaction, and behavioral intentions. International Journal of Hospitality Management, 27, 459-469. Selvarajh, T., Munusamy, J., Chelliah, S., and Pandian, S. (2012). An empirical study on corporate social responsibility in Malaysian aviation industry: A case study. African Journal of Business Management, 6 (8), 2919-2930.
  • 15. Page 15 of 15 Senthikumar, N., Ananth, A., and Arulraj, A. (2011).Impact of corporate social responsibility on customer satisfaction in banking service. African Journal of Business Management, 5 (7), 3028-3039. Sheldon, P.J. (2011). An Exploratory Study of Corporate Social Responsibility in the U.S. Travel Industry. Journal of Travel Research, 50 (4), 392-407. Sheikh, S.R., and Beise-Zee, R. (2011).Corporate social responsibility or cause-related marketing? The role of cause specificity of CSR. Journal of Consumer Marketing, 28 (1), 27-39. Tsai, W. H., and Hsu, J.L. (2008). Corporate social responsibility programs choice and costs assessment in the airline industry—A hybrid model. Journal of Air Transport Management, 14 (4), 188-196. Tsai, W. H., Hsu, J.L, Chen, C.H., Lin, W.R., and Chen, S.P. (2010).An integrated approach for selecting corporate social responsibility programs and costs evaluation in the international tourist hotel. International Journal of Hospitality Management, 29, 385-396 Tsang, N., and Qu, H. (2000). Service quality in China's hotel industry: a perspective from tourists and hotel managers. International Journal of Contemporary Hospitality Management, 12 (5), 316 – 326. Vaaland, T.I., Heide, M., and Grønhaug, K. (2008). Corporate social responsibility: investigating theory and research in the marketing context. European Journal of Marketing, 42 (9), 927 – 953. Wang, Y., Lo, H., and Hui, Y.V. (2003). The antecedents of service quality and product quality and their influences on bank reputation: evidence from the banking industry in China. Managing Service Quality, 13(1), 72 – 83. Wilkins, H., Merrilees, B., and Herington, C. (2007).Towards an understanding of total service quality in hotels. International Journal of Hospitality Management, 26 (4), 840-853. Zeithaml, V.A., Berry, L.L., and Parasuraman, A. (1996).The behavioral consequences of service quality. Journal of Marketing, 60, 31-46.