Abstract:
Corporate sustainability has emerged as a critical component of modern business
practices, yet its impact on customer loyalty remains a subject of ongoing inquiry,
particularly within regional contexts. This study investigates the influence of perceptual
corporate sustainability on customer loyalty in the banking sector of the Batticaloa
district, Sri Lanka. By bridging { research gap at the intersection of sustainability and
customer loyalty, the study aims to provide valuable insights into the dynamics of this
relationship within the unique socio-economic and cultural backdrop of Batticaloa.
The research employs a quantitative approach, utilizing a structured questionnaire to
collect data from 384 customers across five major banks in the district. The study
employs reliability analysis, validity analysis, Univariate analysis (mean and standard
deviation), regression analysis, and hypothesis testing to analyze the collected data.
The findings reveal a high level of perceptual corporate sustainability and customer
loyalty among the customers of selected banks in Batticaloa. Furthermore, the study
identifies a strong positive relationship between perceptual corporate sustainability and
customer loyalty. The regression analysis demonstrates that perceptual corporate
sustainability significantly and positively impacts customer loyalty, with 52.8% of the
observed variance in customer loyalty being explained by the model.
The study contributes to the existing body of knowledge by addressing a critical
research gap and advancing theoretical understanding of the intricate relationship
between perceived corporate sustainability and customer loyalty within a regional
context. The findings offer practical implications for banks in Batticaloa, enabling them
to develop targeted strategies for leveraging sustainability initiatives to enhance
customer loyalty. The research also holds strategic importance for policymakers and
regulatory bodies, informing the formulation of policies that harmonize global
sustainability goals with local concerns.
