IMPACT OF PERCEPTUAL CORPORATE SUSTAINABILITY ON COUSTOMER LOYALTY

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.