Measurement validation of a consumer-driven environmental, social, and governance (ESG) index for the airline industry

Abstract

While recent research on environmental, social, and governance (ESG) factors emphasizes their relevance for corporate financial benefits, a gap remains in understanding how consumers’ perceptions of ESG practices impact their responses toward airlines. This study investigates the influence of perceived airline ESG practices on consumers’ behavioral intentions by exploring the mediating roles of brand image, attachment, and attitude. Initially, a consumer-driven ESG measurement tailored to the airline sector was developed. Subsequently, an online survey involving 567 South Korean consumers was conducted to validate the effects of ESG perception on consumer responses. Data analysis through partial least-squares structural equation modeling revealed notable insights. The study underscores the significance of the “governance” dimension within ESG constructs, demonstrating its pivotal role in enhancing airline brand image, attachment, and attitude—factors that collectively influence consumers’ behavioral intentions. This research contributes novel perspectives from consumers, shedding light on the distinct importance of various ESG dimensions and providing a nuanced understanding of the factors shaping consumer perceptions of ESG initiatives. Overall, given the central role of airlines in the tourism sector and the imperative of understanding consumer perceptions of ESG practices, this study offers a comprehensive theoretical framework to elucidate consumer behavior. The findings deliver valuable insights and practical guidance for professionals in the airline industry.