The Effect of Social Media Marketing and Corporate Social Responsibility on Customer Retention: The Mediating Role of Perceived Value

Abstract

This purpose of this study is to investigate the impact of corporate social responsibility and social media marketing on perceived value. It also examines the impact of perceived value on customer retention. Additionally, it investigates the role that perceived value plays as a mediator between the independent variables and customer retention. This research used a quantitative methodology. Respondents were recruited using a convenience sampling strategy. Data was gathered from 290 participants using an online survey. The data analysis and testing of research hypotheses were conducted using SPSS and AMOS. This research used relationship marketing theory and social exchange theory. The study showed that social media marketing and corporate social responsibility have a favorable impact on perceived value. It was also determined that perceived value positively influences customer retention. Furthermore, perceived value partially mediates the effect of social media marketing on customer retention. Similarly, perceived value partially mediates the effect of corporate social responsibility on customer retention. This paper assists organizations in comprehending the interconnections between perceived value, customer retention, corporate social responsibility, and social media marketing in the retail sector of Pakistan. The outcomes of this research provide the Pakistani retailing industry with useful information for creating branding and marketing strategies to promote the retail business. This study has shown how important social media marketing, corporate social responsibility, perceived value, and customer retention are, which could help make the necessary plans for the retailing industry to grow. Moreover, this study is exceptional since it investigates customer retention in a novel context.