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Restorative advertising in the airline sector

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  • Squalli, Jay

Abstract

It is sometimes contended that large airlines cut their advertising expenditure in reaction to major accidents and postpone it until after the memories of accidents have dissipated. This paper assesses the relationship between safety perceptions and airline advertising expenditure based on the assumption that consumers have updating beliefs and dissipating memories. The results suggest that large airlines do not vary their advertising in reaction to accidents resulting in minor or serious injuries, but appear to decrease advertising expenditure in response to fatal accidents.

Suggested Citation

  • Squalli, Jay, 2009. "Restorative advertising in the airline sector," Journal of Air Transport Management, Elsevier, vol. 15(1), pages 47-51.
    • Handle: RePEc:eee:jaitra:v:15:y:2009:i:1:p:47-51
    DOI: 10.1016/j.jairtraman.2008.10.003
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    References listed on IDEAS

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    1. Beck, Nathaniel & Katz, Jonathan N., 1995. "What To Do (and Not to Do) with Time-Series Cross-Section Data," American Political Science Review, Cambridge University Press, vol. 89(3), pages 634-647, September.
    2. Jay Squalli & Mohsen Saad, 2006. "Accidents airline safety perceptions and consumer demand," Journal of Economics and Finance, Springer;Academy of Economics and Finance, vol. 30(3), pages 297-305, September.
    3. Mitchell, Mark L & Maloney, Michael T, 1989. "Crisis in the Cockpit? The Role of Market Forces in Promoting Air Travel Safety," Journal of Law and Economics, University of Chicago Press, vol. 32(2), pages 329-355, October.
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    5. Borenstein, Severin & Zimmerman, Martin B, 1988. "Market Incentives for Safe Commercial Airline Operation," American Economic Review, American Economic Association, vol. 78(5), pages 913-935, December.
    6. Rose, Nancy L, 1990. "Profitability and Product Quality: Economic Determinants of Airline Safety Performance," Journal of Political Economy, University of Chicago Press, vol. 98(5), pages 944-964, October.
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    Cited by:

    1. Ismail, Noor Azina & Jenatabadi, Hashem Salarzadeh, 2014. "The influence of firm age on the relationships of airline performance, economic situation and internal operation," Transportation Research Part A: Policy and Practice, Elsevier, vol. 67(C), pages 212-224.
    2. Jenatabadi, Hashem Salarzadeh & Ismail, Noor Azina, 2014. "Application of structural equation modelling for estimating airline performance," Journal of Air Transport Management, Elsevier, vol. 40(C), pages 25-33.

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