The impact of consumer's perceived social responsibility on brand loyalty with brand credibility and identity for insurance

EXTENDED ABSTRACT
 
Introduction: In recent decades, intensified market competition and the rise of socially aware consumers have heightened the strategic importance of corporate social responsibility (CSR) in attracting and retaining customers. Service-oriented industries, particularly insurance, rely heavily on long-term customer relationships. Within this context, understanding the mechanisms that enhance customer loyalty to insurance brands is crucial. This study investigates the causal relationship between consumers’ perceived CSR and brand loyalty, with a focus on the mediating roles of brand credibility and brand identity. The research is positioned in the context of Asia Insurance Company in Tabriz, Iran, a competitive service provider facing the challenge of customer retention. Drawing on social exchange theory and signaling theory, the study argues that perceived CSR initiatives enhance consumers’ trust, identification, and emotional attachment, which in turn strengthen loyalty. While CSR has been extensively studied in developed markets, evidence from emerging economies and the insurance industry remains limited. Thus, this study contributes to bridging the gap in the literature by offering empirical findings from Iran’s insurance sector.
Methodology: This research is applied in purpose and descriptive–correlational with a causal design. The statistical population consisted of all Asia Insurance customers in Tabriz during 2023–2024. Using Cochran’s formula, a sample size of 384 was determined. A total of 500 questionnaires were distributed, 403 were returned, and 384 were deemed valid, yielding an 80% response rate. The study employed a standardized questionnaire measuring four constructs: perceived CSR (economic, ethical, and environmental dimensions), brand credibility, brand identity, and brand loyalty. Reliability was confirmed using Cronbach’s alpha coefficients ranging from 0.73 to 0.86, while convergent and discriminant validity were established through confirmatory factor analysis (CFA). Data were analyzed using SPSS and AMOS software with structural equation modeling (SEM). Normality, linearity, and multicollinearity assumptions were tested and satisfied. Model fit was evaluated through indices such as RMSEA = 0.059, CFI = 0.928, GFI = 0.902, and χ²/df = 2.128, all indicating an acceptable model. Bootstrap analysis was applied to test mediation effects.
Discussion and Results: The study underscores the strategic role of CSR in fostering sustainable customer loyalty in the insurance sector. First, CSR directly enhances loyalty by aligning company actions with consumer values. In industries like insurance, where trust and long-term commitment are pivotal, CSR serves as a differentiator in competitive markets. Second, CSR strengthens brand credibility. When customers perceive a company as socially responsible, they view it as more trustworthy and reliable, which reduces uncertainty and enhances confidence in service quality. Third, CSR reinforces brand identity by enabling consumers to connect emotionally with the brand’s values and personality, fostering stronger psychological bonds.
From a managerial perspective, insurance companies should design CSR initiatives not only as philanthropic gestures but as strategic tools integrated into brand management. Transparent communication of CSR activities, customer engagement in social projects, and alignment with community needs are recommended to enhance both credibility and identity. Practically, Asia Insurance could host educational workshops, develop CSR-based loyalty programs, and publish annual CSR reports to reinforce positive perceptions. Moreover, digital storytelling and collaboration with NGOs may amplify the impact of CSR on brand image. This research contributes to the branding and CSR literature by providing empirical evidence from a developing country context. It demonstrates how CSR can act as a catalyst for loyalty through mediating constructs, validating the application of social exchange and signaling theories in insurance services. Future research could explore cross-industry comparisons, longitudinal designs to track CSR impact over time, or cross-cultural studies to examine variations in consumer responses. Limitations include the geographic focus on a single city and reliance on self-reported data, which may restrict generalizability. The results demonstrated that perceived CSR significantly and positively influences brand loyalty (β = 0.73, t = 13.851). Furthermore, perceived CSR exerts significant effects on both brand credibility (β = 0.64, t = 10.903) and brand identity (β = 0.60, t = 10.125). Both mediators—brand credibility (β = 0.79, t = 13.336) and brand identity (β = 0.77, t = 12.571)—were shown to significantly impact brand loyalty. Indirect path analyses confirmed the mediating role of brand credibility (β = 0.351, p < 0.05) and brand identity (β = 0.315, p < 0.05). When both mediators were considered simultaneously, the overall indirect effect of perceived CSR on brand loyalty was β = 0.449 (p < 0.05), confirming the joint mediating effect. These findings provide robust support for the conceptual model, highlighting CSR’s direct and indirect pathways to loyalty.
Conclusion: CSR is not only a moral obligation but a strategic asset that enhances both credibility and identity, ultimately securing customer loyalty. For insurance companies in emerging economies, embedding CSR into brand strategy is essential to achieving sustainable competitive advantage and long-term success.