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.
Highlights
A good firm that dynamically practices and advocates for corporate social responsibility initiatives, in environmentally conscious ways, has better chances of boosting customer retention rates and creating a positive reputation and attitudes toward the firm [1]
The purpose of the current study was to examine the influence of corporate social responsibility (CSR) on customer loyalty and to find the moderating effects of the socio-economic characteristics of passengers in the airline industry
The airline industry is especially under more pressure to be socially responsible due to their large carbon footprint, and many airlines have put a variety of CSR initiatives in place
Summary
A good firm that dynamically practices and advocates for corporate social responsibility initiatives, in environmentally conscious ways, has better chances of boosting customer retention rates and creating a positive reputation and attitudes toward the firm [1]. This is even more true in the airline industry. Customers increasingly want to buy products or services from socially responsible companies that care for the environment, communities, and society [6] Given such market conditions, the airline firms’ bid for environmental corporate social responsibility practices is undoubtedly essential to rouse eco-conscious consumers’ loyalty intentions and beneficial behavior from companies [1], which are crucial requirements for successfully managing airlines and generating long-term profits for firms [7]
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