The Influence of CSR on Airline Loyalty through the Mediations of Passenger Satisfaction, Airline Brand, and Airline Trust: Korean Market Focused

Abstract

Corporate social responsibility (CSR) has become a significant factor in determining business sustainability. This trend is particularly evident in the airline industry, as airlines endeavor to navigate highly competitive market circumstances. CSR activities constitute a significant duty as one of the survival strategies and to sustain their business based on the customer loyalty in the airline industry in Korea. The purpose of this research was to explore the influence of CSR on airline loyalty through meaningful mediators within the airline industry in order to elicit important insights and provide relevant conclusions for airline experts to apply toward business sustainability. This study employed three factors—passenger satisfaction, airline brand, and airline trust—as key mediators between CSR and airline loyalty. An online survey was carried out through private SNS channels targeting airline service users, and 312 completed surveys were collected. A confirmatory factor analysis (CFA) and structural equation modeling (SEM) enabled the study to determine that CSR activities among airlines significantly impact passenger satisfaction, airline brand, and airline trust. Moreover, passenger satisfaction and airline trust have a notable influence on airline loyalty. Limitations and implications for both academia and management are also presented based on the results of this research.

The Effects of ESG Management on Business Performance: The Case of Incheon International Airport

“…Consequently, the alignment of environmental and governance factors with reputation, especially in performance evaluation, appears limited, hindering the recognition of ESG activities. This limitation might explain the lower overall correlation of ESG components compared to more familiar factors among the public [52,155]. This study delves into the structural equation modeling (SEM) path analysis conducted within the research model's framework.…”

The nexus between corporate social responsibility of airports and passenger satisfaction: A cross‐country study

“…Since the quality and price of a commodity are not certainly a competitive edge, ethical and social behavior is measured as crucial factors that can trigger a passenger response (Chung et al, 2022). Passengers look for noticeable signals, for example, CSR initiatives, to recognize underlying desired traits such as "how a company cares."…”

“…CSR is an efficient approach to enhance individual satisfaction in the present consumerist culture as consumers are becoming more aware of social issues, and their reactions are becoming stronger (Ali et al, 2021). Airports' involvement in CSR actions significantly increases customer satisfaction and attitudes, and as a result, passenger intentions for loyalty increase (Chung et al, 2022). As a result, CSR initiatives can serve as a strategic and tactical tool for airports to regulate and manage their passenger interactions, as these activities, particularly in the social area, assist them in sending the proper indications to stakeholders and forming reputational insights (Leiva et al, 2016).…”

“…CSR has potentially been considered a relevant attribute in the marketer's realm. Since the quality and price of a commodity are not certainly a competitive edge, ethical and social behavior is measured as crucial factors that can trigger a passenger response (Chung et al, 2022). Passengers look for noticeable signals, for example, CSR initiatives, to recognize underlying desired traits such as “how a company cares.” They recognize more effectively a firm involved in CSR and are satisfied with their choices (Nikbin et al, 2016).…”

“…When persons perceive affirmative CSR, their assessments and approach toward the corporation will be favorable, consequently leading to high satisfaction (Pérez & Del Bosque, 2015). Particularly, in the airport industry, there is a positive correlation between passengers' view of CSR activities and their satisfaction intention (Chung et al, 2022; Phillips et al, 2019). When passengers observe CSR activities positively, their attachments to the airport and their satisfaction are strengthened (Chang & Yeh, 2016).…”