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Taking Another Look at Airline CSR: How Required CSR and Desired CSR Affect Customer Loyalty in the Airline Industry

Author

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  • Yaeri Kim

    (College of Business Administration, Sejong University, Gwang-gaeto Bldg 321, Neungdong-ro 209, Gwangjin-gu, Seoul 05006, Korea
    All authors contributed equally to this paper.)

  • Seojin Stacey Lee

    (Center for Happiness Studies, Seoul National University, Gwanak-gu, Gwanak-ro 1, Bldg. 220, Seoul 08826, Korea
    All authors contributed equally to this paper.)

  • Taewoo Roh

    (Department of International Trade and Commerce, Soonchunhyang University, Unitopia 901, Soonchunhyang-ro 22, Sinchang-myeon, Asan-si 31538, Korea)

Abstract

This study aims to take another look at corporate social responsibility (CSR) dimensions in airline industries and identify the moderating effects of socio-economic characteristics on customer loyalty. We applied Carroll’s four CSR dimensions and reorganized economic and legal responsibilities under ‘required CSR’ and philanthropic and environmental responsibilities under ‘desired CSR’. The current study reveals that customer loyalty increased when customers perceived airlines to be practicing desired CSR, but not for required CSR. However, this effect varies depending on the expected moderator of socio-economic variables. Regarding required CSR, customers with higher levels of either income or formal education showed increased customer loyalty. However, for desired CSR, only customers with higher levels of education showed significantly increased customer loyalty. Thus, the research findings imply that in order to effectively deliver CSR strategies, airline CSR initiatives also need to take into consideration the socio-economic levels of targeted consumers.

Suggested Citation

  • Yaeri Kim & Seojin Stacey Lee & Taewoo Roh, 2020. "Taking Another Look at Airline CSR: How Required CSR and Desired CSR Affect Customer Loyalty in the Airline Industry," Sustainability, MDPI, vol. 12(10), pages 1-19, May.
    • Handle: RePEc:gam:jsusta:v:12:y:2020:i:10:p:4281-:d:362067
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    2. T. Praveen Kumar & Santosh Basavaraj & K. Soundarapandiyan, 2024. "Can co‐creating in CSR initiatives influence loyal customers? Evidence from the banking industry," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 31(1), pages 180-195, January.
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    7. Thowayeb H. Hassan & Amany E. Salem, 2021. "Impact of Service Quality of Low-Cost Carriers on Airline Image and Consumers’ Satisfaction and Loyalty during the COVID-19 Outbreak," IJERPH, MDPI, vol. 19(1), pages 1-16, December.
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