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

Yaeri Kim, Seojin Stacey Lee and Taewoo Roh
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Yaeri Kim: College of Business Administration, Sejong University, Gwang-gaeto Bldg 321, Neungdong-ro 209, Gwangjin-gu, Seoul 05006, Korea
Seojin Stacey Lee: Center for Happiness Studies, Seoul National University, Gwanak-gu, Gwanak-ro 1, Bldg. 220, Seoul 08826, Korea
Taewoo Roh: Department of International Trade and Commerce, Soonchunhyang University, Unitopia 901, Soonchunhyang-ro 22, Sinchang-myeon, Asan-si 31538, Korea

Sustainability, 2020, vol. 12, issue 10, 1-19

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.

Keywords: corporate social responsibility (CSR); desired CSR; required CSR; socio-economic characteristics of consumers; partial least square structural equation model (PLS-SEM) (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (14)

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