Abstract

OGINNI, B.O., AJIBOLA, K. S., BABATUNDE, B. O., FAMOLU, F. B. (2022) Does Discretionary Spending and Ethical Responsibility Guarantee Customer Loyalty? Izvestiya. Journal of Economics, Management and Informatics, 66 (3–4), pp. 154 – 168. https://doi.org/10.56065/IJUEV2022.66.3-4.154

Customer loyalty is still a major concern to organizations despite the various activities of manufacturing firms in their various host communities. Given this, this paper examines the relationship between discretionary spending, ethical responsibility and customer loyalty. The descriptive survey research design was adopted in the study. The unit of analysis was International Breweries and a purposive sampling technique was used to select sample for the study from the target population. The stakeholder theory was the underpinning theory. The result revealed that there exists a strong significant positive relationship between discretionary spending, ethical responsibility and customer loyalty. Based on the findings, it was recommended that organizations should have a standing committee to oversee the proper implementation, monitoring, control, and evaluation of their discretionary spending and ethical responsibility activities.

Keywords: customer loyalty, discretionary spending, ethical responsibility, ethical business

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