Mid Sweden University

Small and medium sized enterprises (SME) are considered to be some of the most important clients for banks and financial institutions since they generally provide them with the greatest profits. However, this is currently changing as clients today are more prone to switch banks than previously. Price has generally been a factor that might be important in regards to SME loyalty since price may have a direct effect on SMEs. On the other hand CSR may have long term effects that are not only positive for SMEs but also society as a whole. CSR may have become more important due to today’s society where people might have become more environmentally conscious and where society to a higher degree than before, have started to hold companies responsible for their actions. The purpose of this study will therefore be to measure, describe and analyze how CSR and price affect SMEs loyalty towards banks in comparison to the previously studied variables of satisfaction, trust, service quality and relationship. The empirical data in this study was composed of primary data since the authors of the study collected it by themselves. The authors gathered the data through a survey conducted over the telephone. The study conducted a total of 240 phone calls within the Västernorrland and Gävleborg County, which resulted in a total number of 82 respondent that answered the survey. The result of this study shows that CSR, price, satisfaction, service quality and trust does not have any statistically significant effect on SMEs loyalty towards banks which could be interpreted as these variables not being that important for SMEs choice of bank. This study can establish that only the variable relationship had a significant effect on SMEs loyalty towards banks. This could be because SMEs believe that having a strong and enduring relationship with their bank will be in their best interest.