The Impact of Environmental and Social Responsibility on Customer Loyalty: A Multigroup Analysis among Generations X and Y

The purpose of the current study was to comparatively estimate, for generation X and generation Y, the impact of corporate environmental and social responsibility on customer loyalty, via customer-company identification and customer satisfaction as mediators. For this, a survey was conducted among a sample of telecom customers, comprising 445 members of generation X, and 601 of generation Y. Data were analyzed using partial least squares structural equation modeling and multigroup analysis. Results revealed that the impact of corporate environmental responsibility on customer loyalty is significantly higher within generation Y, while the social facet of corporate responsibility is more relevant for customers from generation X. The current study contributes to the literature by developing and testing, within multiple generational groups, a theoretical model which outlines the links between environmental and social responsibility and customer outcomes. As these relationships have been scarcely analyzed in the context of age cohort membership as a moderator, our study fills an important literature gap, emphasizing significant differences between generations X and Y. The findings have relevant implications for the effective communication of corporate environmental and social responsibility activities, providing important insights on how messages and communication channels should be adapted to generations X and Y as target audiences.