FROM CSR TO SERVICE QUALITY: UNVEILING THE KEY DRIVERS OF CUSTOMER LOYALTY FOR INDONESIA'S FLAG CARRIER
DOI:
https://doi.org/10.25170/jm.v22i1.6046Keywords:
corporate social responsibility, service quality, corporate image, customer loyalty, airline industryAbstract
To stay ahead in the competitive airline industry, various efforts are made to maintain consumer loyalty amidst numerous airline options. Companies engage in Corporate Social Responsibility activities as a marketing strategy. These efforts support sustainability, enhance corporate image, and strengthen customer loyalty. However, relying solely on social activities is not enough to boost customer loyalty. In such a competitive aviation industry, airlines must also focus on business activities related to customers, influenced by service quality. This study examines the impact of CSR and service quality on corporate image and customer loyalty of airlines in Indonesia. Using a quantitative approach, questionnaires were distributed online to 319 respondents. Data was processed using SmartPLS software for hypothesis testing. Out of 16 hypotheses, 14 were accepted, indicating a stronger direct relationship between service quality towards corporate image and customer loyalty compared to CSR. Additionally, the mediating influence of corporate image was identified.
References
Akdogu, S. K. (2017). The Link Between CSR and Sustainable Development in a Global Economy. The Annals of Regional Science, 37(1), 55-77. https://doi.org/10.1007/978-3-319-35083-7_13
Alam, M. M. D., & Noor, N. A. M. (2020). The Relationship Between Service Quality, Corporate Image, and Customer Loyalty of Generation Y: An Application of S-O-R Paradigm in the Context of Superstores in Bangladesh. SAGE Open, 10(2). https://doi.org/10.1177/2158244020924405
Alkarkhi, A. F. M., & Alqaraghuli, W. A. A. (2020). Statistical Hypothesis Testing. Applied Statistics for Environmental Science with R, 57–86. https://doi.org/10.1016/b978-0-12-818622-0.00005-8
Badan Pusat Statistik. (2023). Jumlah Penumpang Pesawat di Bandara Utama. https://www.bps.go.id/id/statistics-table/2/NjYjMg==/jumlah-penumpang-pesawat-di-bandara-utama.html
Banerji, D., Saha, V., Singh, N., & Srivastava, R. (2023). What are the most important consumer decision factors when choosing an airline? An emerging economy perspective. The Annals of Regional Science, 37(1), 55-77. https://doi.org/10.1108/APJML-07-2021-0486
Berndt, A. E. (2020). Sampling Methods. Journal of Human Lactation, 36(2), 224–226. https://doi.org/10.1177/0890334420906850
Chen, C. C., Khan, A., Hongsuchon, T., Ruangkanjanases, A., Chen, Y. T., Sivarak, O., & Chen, S. C. (2021). The role of corporate social responsibility and corporate image in times of crisis: The mediating role of customer trust. International Journal of Environmental Research and Public Health, 18(16). https://doi.org/10.3390/ijerph18168275
Chung, S., Park, J. W., & Lee, S. (2022). The Influence of CSR on Airline Loyalty through the Mediations of Passenger Satisfaction, Airline Brand, and Airline Trust: Korean Market Focused. Sustainability, 14(8). https://doi.org/10.3390/su14084548
Cui, Q. and Li, X. yi (2021) Which airline should undertake a large emission reduction allocation proportion under the “carbon neutral growth from 2020” strategy? An empirical study with 27 global airlines. Journal of Cleaner Production 279(2021). https://doi.org/10.1016/j.jclepro.2020.123745
Gurlek, M., Duzgun, E., & Uygur, S. M. (2018). How does corporate social responsibility create customer loyalty? The role of corporate image. The Electronic Library, 34(1), 1–5. https://doi.org/10.1108/SRJ-10-2016-0177
Hair, J. F. et al. (2021). An Introduction to Structural Equation Modeling. The Annals of Regional Science, 37(1), 55-77. https://doi.org/10.1007/978-3-030-80519-7_1
Han, H., Chua, B. L., Lee, S., & Koo, B. (2021). Quality, emotion, price, and social values in building passenger loyalty: Impact of relationship quality (mediator) and in-flight physical environments (moderator). Journal of Travel and Tourism Marketing, 38(2), 123–138. https://doi.org/10.1080/10548408.2021.1887054
Han, H., Yu, J., & Kim, W. (2019). Environmental corporate social responsibility and the strategy to boost the airline’s image and customer loyalty intentions. Journal of Travel and Tourism Marketing, 36(3), 371–383. https://doi.org/10.1080/10548408.2018.1557580
Hasan, M., Khan, M. N., & Farooqi, R. (2019). Service Quality Measurement Models: comparative analysis and application in airlines industry. Global Journal of Enterprise Information System, 11(3 SE-View Point (VP)), 30–38. https://doi.org/10.18311/gjeis
Hwang, J., & Lyu, S. O. (2020). Relationships among green image, consumer attitudes, desire, and customer citizenship behavior in the airline industry. International Journal of Sustainable Transportation, 14(6), 437–447. https://doi.org/10.1080/15568318.2019.1573280
International Air Transport Association. (2023). Safety Report Executive and Safety Overview 2023. https://www.iata.org/en/publications/safety-report/
Karim, R. Al, & Rabiul, M. K. (2022). The Relationships of Corporate Sustainability, Customer Loyalty, and Word of Mouth: The Mediating Role of Corporate Image and Customer Satisfaction. Journal of Quality Assurance in Hospitality and Tourism, 00(00), 1–25. https://doi.org/10.1080/1528008X.2022.2107954
Khoo, K. L. (2022). A study of service quality, corporate image, customer satisfaction, revisit intention and word-of-mouth: evidence from the KTV industry. PSU Research Review, 6(2), 105–119. https://doi.org/10.1108/PRR-08-2019-0029
Kim, M., Yin, X., & Lee, G. (2020). The effect of CSR on corporate image, customer citizenship behaviors, and customers’ long-term relationship orientation. International Journal of Hospitality Management, 88(October 2019), 102520. https://doi.org/10.1016/j.ijhm.2020.102520
Kim, S., & Hwang, J. (2023). Airline CSR and Quality Attributes as Driving Forces of Passengers’ Brand Love: Comparing Full-Service Carriers with Low-Cost Carriers. Sustainability, 15(9). https://doi.org/10.3390/su15097293
Kim, Y., Lee, S. S., & Roh, T. (2020). Taking another look at airline CSR: How required CSR and desired CSR affect customer loyalty in the airline industry. Sustainability, 12(10). https://doi.org/10.3390/su12104281
Latif, F., Pérez, A., Alam, W., & Saqib, A. (2019). Development and validation of a multi-dimensional customer-based scale to measure perceptions of corporate social responsibility (CSR). Social Responsibility Journal, 15(4), 492–512. https://doi.org/10.1108/SRJ-03-2018-0080
Lee, S. S., Kim, Y., & Roh, T. (2019). Modified pyramid of CSR for corporate image and customer loyalty: Focusing on the moderating role of the CSR experience. Sustainability, 11(17). https://doi.org/10.3390/su11174745
Lee, W. S., Tang, R., Moon, J., & Song, M. (2022). The structural relationship between a low-cost carrier’s service experience, corporate social responsibility, brand love, and reuse intention: The case of Southwest Airlines. Journal of Air Transport Management, 102(February 2021). https://doi.org/10.1016/j.jairtraman.2022.102216
Nitzl, C., Roldan, J.L. and Cepeda, G. (2016) Mediation analysis in partial least squares path modelling, Helping researchers discuss more sophisticated models, Industrial Management and Data Systems, 116(9). https://doi.org/10.1108/IMDS-07-2015-0302.
Orhan, G. (2021). The effects of airline strategies on environmental sustainability. Aircraft Engineering and Aerospace Technology, 93(8), 1346–1357. https://doi.org/10.1108/AEAT-03-2021-0078
Özkan, P., Süer, S., Keser, I. K., & Kocakoç, I. D. (2020). The effect of service quality and customer satisfaction on customer loyalty: The mediation of perceived value of services, corporate image, and corporate reputation. International Journal of Bank Marketing, 38(2), 384–405. https://doi.org/10.1108/IJBM-03-2019-0096
Park, E. (2019). Corporate social responsibility as a determinant of corporate reputation in the airline industry. Journal of Retailing and Consumer Services, 47(October 2018), 215–221. https://doi.org/10.1016/j.jretconser.2018.11.013
Shen, C., & Yahya, Y. (2021). The impact of service quality and price on passengers’ loyalty towards low-cost airlines: The Southeast Asia’s perspective. Journal of Air Transport Management, 91(October 2020), 101966. https://doi.org/10.1016/j.jairtraman.2020.101966
Song, H. J., Ruan, W., & Park, Y. (2019). Effects of service quality, corporate image, and customer trust on the corporate reputation of airlines. Sustainability (Switzerland), 11(12). https://doi.org/10.3390/su10023302
Streimikiene, D., Lasickaite, K., Skare, M., Kyriakopoulos, G., Dapkus, R., & Anh, P. (2020). The impact of Corporate Social Responsibility on Corporate Image: Evidence of budget airlines in Europe. The Annals of Regional Science, 37(1), 55-77. https://doi.org/10.1002/csr.2099
Sunny, J., Song, H., Lee, C., & Young, J. (2017). The impact of four CSR dimensions on a gaming company’s image and customers’ revisit intentions. International Journal of Hospitality Management, 61, 73–81. https://doi.org/10.1016/j.ijhm.2016.11.005
Sunny, J., Song, H., Lee, C., & Young, J. (2017). The impact of four CSR dimensions on a gaming company’s image and customers’ revisit intentions. International Journal of Hospitality Management, 61, 73–81. https://doi.org/10.1016/j.ijhm.2016.11.005
Thanh, H. P., & Anh, T. H. (2023). The mediating impact of airlines’ image in relation of corporate social responsibility and customers’ loyalty: An empirical in Vietnam. Cogent Business and Management, 10(1). https://doi.org/10.1080/23311975.2023.2188641
Upadhaya, B., Munir, R., Blount, Y., & Su, S. (2018). Diffusion of corporate social responsibility in the airline industry. International Journal of Operations and Production Management, 38(4), 1020–1040. https://doi.org/10.1108/IJOPM-10-2015-0638
Wang, C. C. (2020). Corporate social responsibility on customer behaviour: the mediating role of corporate image and customer satisfaction. Total Quality Management and Business Excellence, 31(7–8), 742–760. https://doi.org/10.1080/14783363.2018.1444985
Zhao, Y., Abbas, M., Samma, M., Ozkut, T., Munir, M., & Rasool, S. F. (2021). Exploring the Relationship Between Corporate Social Responsibility, Trust, Corporate Reputation, and Brand Equity. Frontiers in Psychology, 12(November), 1–10. https://doi.org/10.3389/fpsyg.2021.766422
Downloads
Published
Issue
Section
License
Copyright (c) 2025 Kelvin Levi Martawidjaja, Tengku Ezni Balqiah
This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
Authors who publish with this journal agree to the following terms:
Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution-NonCommercial-ShareAlike License that allows others to share the work with an acknowledgement of the work's authorship and initial publication in this journal.
Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgement of its initial publication in this journal.
Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See the Effect of Open Access).
