Preview

Csr in Viet Nam

Best Essays
Open Document
Open Document
3728 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Csr in Viet Nam
Mathematics and Computers in Contemporary Science

The effect of CSR initiatives on customer loyalty in the airline industry
ROMAN ASATRYAN Department of Economics Tomas Bata University in Zlin Mostní 5139, 76001, Zlín CZECH REPUBLIC romankempo2002@yahoo.com
Abstract: - Customer loyalty is one of the most essential consumers behaviours that firms endeavor to influence through the use of Corporate Social Responsibility (CSR) as a marketing tool. Over the years, researchers have studied the impact of CSR in direct relationship to customer loyalty. In the airline industry, firms are increasingly formulating and implementing CSR policy initiatives. When managers of airlines invests resources in social responsibility activities and see the investment as an aspect of the promotion and marketing of the firm, they want to know the possible impact of such measures, particularly those that relate to the knowledge and opinions of customers of CSR, and how these impacts on the relationship between customers and airlines. The main objective of this study is to examine customer knowledge and opinions of CSR, and examine the relationship between it and customer loyalty in the Central and Eastern European (CEE) airline market. The study found that, customers of airlines tend to be concerned with airline CSR initiatives although they perceive them to be less than satisfactory. Findings from a hierarchical regression analyses indicates that, when there is a control for relationship quality, airline CSR has a marginally significant and positive association with behavioral and attitudinal loyalty. This tends to show that, the respondents regard it as important for airlines to assume their social obligations to society. However, there is a concession; there is considerable room for improvement, in terms of the CSR performance of airlines. The study also found that CSR initiatives can enhance customer loyalty with airline CSR having a marginally significant influence on behavioral



References: [1] Bojei, J. and Alwie, A. The influence of relationship quality on loyalty in service sector. International Journal of Economics and Management, Vol. 4, 2010, pp.81-100. [2] Boulstridge, E. and Carrigan, M. Do consumers really care about corporate responsibility: highlighting the attitude-behavior gap. Journal of Communication Management. Vol. 4, No. 4, 2000. pp. 358–368. [3] Brown, T. and Dacin, P. The Company and the Product: Corporate Associations and Consumer Product Responses. Journal of Marketing. Vol. 61, No. 1, 1997. pp. 68-84. [4] Chaudhuri, A. and Holbrook, M. B. The chain of effects from brand trust and brand affect to brand performance: the role of brand loyalty. Journal of Marketing, Vol. 65, 2001, pp. 81-93. [5] Cheng, J. H., Chen, F. Y. and Chang, Y. H. Airline relationship quality: an examination of Taiwanese passengers. Tourism Management, Vol. 29, 2008, pp. 487-499. [6] Creyer, E. H. and Ross, W. T. The influence of firm behavior on purchase intention: do consumers really care about business ethics? Journal of Consumer Marketing. Vol. 14, 1997, pp. 421–432. [7] Du, S., Bhattacharya, C. B and Sen, S. Reaping relational rewards from corporate social responsibility: The role of competitive positioning. International Journal of Research in Marketing. Vol. 24, Issue 3, 2007. pp. 224– 241. [8] Fang-Yuan, C., Yu-Hern C. and Yi-Hsin, L. Customer perceptions of airline social responsibility. Journal of Air Transport Management, Vol. 20, 2012, pp. 49-50. [9] Folkes, V. S. and Kamin, M. A. Effects of Information About Firms’ Ethical and UnethicalActions on Consumers’ Attitudes. Journal of Consumer Psychology. Vol. 8, No. 3, 1999. pp. 243-259. [10] Forster, T. Die grünen Yuppies. Werben & Verkaufen, Vol. 51, 2007, pp. 45 [11] Freeman, R. E., Harrison, S. J., Wicks, C. A., Parmar, L. B. and De Colle, S. Stakeholder theory: The state of the art. Cambridge University Press: UK. 2010. 4 Conclusion In conclusion, it can be emphasized that CSR has an effect on customer loyalty. Hence, the study identifies areas that organizations can emphasize with regards to the involvement and support for CSR efforts in the airline market across the CEE region. This tends to show that the respondents regard as important for airlines to assume their social obligations to society. However, there is a concession that there is considerable room for improvement in terms of the CSR performance of airlines. It was also found that CSR initiatives can enhance customer loyalty with airline CSR having a marginally significant influence on behavioral and ISBN: 978-1-61804-152-4 70 Mathematics and Computers in Contemporary Science [12] Garcia de los Salmones, M. M., Crespo, A. H. and Rodriguez del Bosque, I., Influence of corporate social responsibility on loyalty and valuation of services. Journal of Business Ethics, Vol. 61, 2005, pp. 369-385. [13] Lazar, F. A vital industry in search of new policies: air transport in Canada. Behind the Headlines, (2003). http://goliath.ecnext.com/coms2/gi_0199162100/A-vital-industry-insearch.html, (November, 1, 2012) [14] Lichtenstein, D., Drumwright, M. E. and Braig, M. B. The Effect of Corporate Social Responsibility on Customer Donations to Corporate-Supported Nonprofits. Journal of Marketing. Vol. 68, No. 4, 2004. pp. 16-32. [15] Lin, C.P. and Ding, C. G. Opening the black box: assessing the mediating mechanism of relationship quality and the moderating effects of prior experience in ISP service. International Journal of Service Industry Management, Vol. 16, 2005, pp. 55-80. [16] Liu, Y., Hongli, J. and Fenglan, A Study on the Perceived CSR and Customer Loyalty Based on Dairy Market in China. Service Systems and Service Management (ICSSSM), 2010 7th International Conference. 2010. pp. 1-6. [17] Mandhachitara, R. and Poolthong, Y. A model of customer loyalty and corporate social responsibility. Journal of Services Marketing, Vol. 25, 2011, pp. 122-133. [18] Roberts, K., Varki, S. and Brodie, R. Measuring the quality of relationships in consumer services: an empirical study. European Journal of Marketing, Vol. 37, 2003, pp. 169-196. [19] Romanova, I. Air Transport in the UK: Current Trends and Future Scenarios, (2004), http://www.hausarbeiten.de/faecher/vorschau/3 6306.html, October 11, 2012. [20] Ross, J. K., Patterson, L. and Stutts, M. A. Consumer Perceptions of Organizations That Use Cause-Related Marketing. Journal of the Academy of Marketing Science. Vol. 20, No. 1, 1992. pp. 9397. [21] Sen, S. and Bhattacharya, C. Does Doing Good Always Lead to Doing Better? Consumer Reactions to Corporate Social Responsibility. Journal of Marketing Research. Vol. 38, No. 2, 2001. pp. 225-243. [22] Simcic Bronn, P. and Belliu Vrioni, A. Corporate social responsibility and causerelated marketing: an overview. International Journal of Advertising. Vol. 20, 2001. pp. 207– 222. [23] Valor, C. Corporate social responsibility and corporate citizenship: towards corporate accountability. Business and Society Review, Vol. 110, 2005, pp. 191-212. [24] Wood, J. D. Corporate social performance revisited. The Academy of Management Review. Vol. 16, No. 4, 1991. pp. 691-718. ISBN: 978-1-61804-152-4 71

You May Also Find These Documents Helpful

  • Good Essays

    Air Canada Swot Analysis

    • 1010 Words
    • 5 Pages

    Air Canada, founded in 1937, has been recognised as Canada’s flag airline.1 This airline provides services to its passengers within 192 countries around the world and ranks top twenty amongst the largest air transport provider worldwide.2 Air Canada has established a direct connection between its passengers and their company through brand loyalty. Two main aspects that are continuously being focused on is attitudinal aspects as well as behavioural aspects. It is undeniable that besides having the mindset to continue repurchasing from a certain brand, customers also have a certain level of commitment or emotional connection towards the brand. This report aims to examine the factors that influence passengers towards brand loyalty…

    • 1010 Words
    • 5 Pages
    Good Essays
  • Powerful Essays

    Success for commercial airline companies is determined by their profit and their profitability is increased by making the most of satisfying their customers and retaining loyalty. Survey results in 2007 indicated that “airlines have work to do to improving customer satisfaction,” (AP, 2007). Delta Airlines ranked among the lowest and Southwest Airlines ranked among the highest in the survey areas of overall satisfaction, intentions to be a repeat customer, perceptions in expectations, value and quality in response to questions related to approval in a variety of industries including airlines. In order to gauge the level of customer contentment, whether or not it has improved for these two airline companies and how customer satisfaction differs between Southwest Airlines and Delta Airlines, a research project was conducted to find out how the customers now react to the respective airline companies and how well the airlines are trying to satisfy customers after making promises to do better.…

    • 3475 Words
    • 14 Pages
    Powerful Essays
  • Good Essays

    In the set-up to the play we learn that Willy has come home early from his work trip because he is not longer able to drive and he can’t do his job. His son Biff is home after working as a farm hand for many years in the West. It is revealed that Willy’s mental wanderings are getting worse; he is preoccupied with Biff’s aimlessness and inability to find success in business. As the development continues, Linda informs her sons that Willy has been trying to commit suicide and tells Biff that his father’s life is in his hands. Biff needs to get a job and get serious – or take the blame for his father’s actions.…

    • 845 Words
    • 4 Pages
    Good Essays
  • Powerful Essays

    Auditing Research

    • 5043 Words
    • 21 Pages

    Moir, L. (2001). What do we mean by Corporate Social Responsibility? Corporate Governance: The International Journal of Effective Board Performance, 16-22.…

    • 5043 Words
    • 21 Pages
    Powerful Essays
  • Powerful Essays

    Sheldon, Pauline, and Sun Yun Park. “An Exploratory Study of Corporate Social Responsibility in the U.S. Travel Industry.” Journal of Travel Research 50:392 (2010): n. pag. Web. Mar. 2014…

    • 2511 Words
    • 8 Pages
    Powerful Essays
  • Powerful Essays

    Caceres, R. C. & Paparoidamis, N. G. (2005). Service quality, relationship satisfaction, trust, commitment and business-to-business loyalty. European Journal of Marketing, 41(7/8), 836-867.…

    • 2712 Words
    • 11 Pages
    Powerful Essays
  • Best Essays

    Csr Ryanair

    • 3593 Words
    • 15 Pages

    This study is to analysis the selected airline business environment and Corporate Social Responsibility (CSR) program implementations of some airline and compare with the selected airline.…

    • 3593 Words
    • 15 Pages
    Best Essays
  • Powerful Essays

    Business Plan Sample

    • 16533 Words
    • 67 Pages

    Li, M. L., & Green, R. D. 2011. A mediating influence on customer loyalty: The role of…

    • 16533 Words
    • 67 Pages
    Powerful Essays
  • Powerful Essays

    Customer perception is an integral part of company success. Study showed that customers’ willingness to buy are dominantly based on their perceptions of the company (Smith, 2013). Hence, customer relationship management (CRM), which has direct impact on their perceptions, plays a crucial role in company performance. Lacey and Kennett-Hensel (2010) demonstrated a strong connection between CSR performance and CRM, stating that customer relationships could be strengthened by the adoption of CSR measures. By taking into consideration interactions with customers, such as customer experience and after-sale services, CSR activities could help promote customer satisfaction and reduce conflicts with customers. According to Kumar (2012), companies with better CRM are more…

    • 1534 Words
    • 6 Pages
    Powerful Essays
  • Satisfactory Essays

    Malaysia airlines are able to compete with other airlines company , putting more effort in winning customer interest is one of the important factor. In order to win customer trust and confidence, giving deals, promotions, and brand loyalty are of the fundamental pillars of any organization. Giving the most common example of firms keeping their brand loyalty is by accessing membership-card. Malaysia airlines can include facilities to their membership cards to penetrate the market within potential customers, such as giving promotions based on the percentage level according to the customer credibility. When customers travel, Malaysia airlines facilitate customers with credit points which can be redeem for discount or upgrading economic class to business class seats in future travelling. However, it is important to prevent customer’s reluctance becoming a member of Malaysia airlines, application of membership cards to all the customers should be simplify by reducing terms and conditions.WInning customer satisfaction in order to meet the competition challenges, Malaysia airlines involve themselves in Corporate Social Responsibility (CSR) which is a process that encourages companies involve in activities that embrace responsibilities in social benefits, including environment, customers, employees, communities. With CSR, Malaysia airlines can strive for a distinctive selling proposition in the competitive airlines industry and play a part in building customer loyalty based on unique moral values such as Provide helping hands in the unfavorable conditions . CSR can improvise the employees efficiency, because they will contribute better productivity and prove them more productive towards the firm or organization when the company provides flexible environment and…

    • 318 Words
    • 2 Pages
    Satisfactory Essays
  • Best Essays

    Löber, H. (2012) Corporate Management, Corporate Social Responsibility and Customers : An Empirical Investigation. Hamburg: Diplomica Verlag.…

    • 3376 Words
    • 12 Pages
    Best Essays
  • Powerful Essays

    Csr Strategy

    • 5669 Words
    • 23 Pages

    CORPORATE SOCIAL RESPONSIBILITY STRATEGY, MARKETING PERFORMANCE AND MARKETING SUSTAINABILITY: AN EMPIRICAL INVESTIGATION OF ISO 14000 BUSINESSES IN THAILAND Srisunan Prasertsang, Mahasarakham Business School, Mahasarakham University, Thailand Phapruke Ussahawanitchakit, Mahasarakham Business School, Mahasarakham University, Thailand ABSTRACT This study examines the impacts of six dimensions of corporate social responsibility strategy on marketing sustainability through mediating influences of marketing image, customer satisfaction, stakeholder acceptance and marketing performance. Corporate social responsibility consists of human development, environment considerations, community involvements, product and service innovation, consumer attention, and competition tendency which is an important strategy that will help firm gain greater marketing image, customer satisfaction, stakeholder acceptance, marketing performance and marketing sustainability. Here, 106 ISO 14000 businesses in Thailand were chosen as the sample of the study. The results show that some dimensions of corporate social responsibility strategy have a significant effect on marketing image, customer satisfaction, stakeholder acceptance and marketing sustainability. Also, marketing performance has a potential positive influence on marketing sustainability. In addition, ethics vision and competitive intensity have a partial moderating effect on the relationship corporate social responsibility strategy, marketing image, customer satisfaction, stakeholder acceptance, marketing performance and marketing sustainability. Potential discussion with the research results is effectively implemented in the study. Theoretical and managerial contributions are explicitly provided. Conclusion and suggestions and directions for future research are highlighted. Keywords: Corporate Social Responsibility, Marketing Image, Customer Satisfaction, Stakeholder Acceptance, Marketing Performance, Ethics Vision, Competitive…

    • 5669 Words
    • 23 Pages
    Powerful Essays
  • Good Essays

    According to a survey conducted by Nielsen in the UAE, 49% of buyers are eager to reward companies that are socially responsible. Even if a company charges high for their goods and services, consumers are prepared to spend more, as long as they are socially responsible. Since its commencement in 2006, the Abu Dhabi Airports Company has been positively acknowledged for its operational excellence, marketing, training and corporate responsibility initiatives by the local community and international as well as local organizations.…

    • 794 Words
    • 4 Pages
    Good Essays
  • Satisfactory Essays

    csr in hcl

    • 681 Words
    • 3 Pages

    CSR has become an integral part of corporate strategy. Companies have CSR teams that devise specific policies, strategies and goals for their CSR programs and set aside budgets to support them. Corporate social responsibility plays a crucial role in making your brand popular not only among your competitors but also media, other organizations and most importantly people who are your direct customers. Corporate social responsibility (CSR) focuses on the wealth creation for the optimal benefit of all stakeholders – including shareholders, employees, customers, environment and society..…

    • 681 Words
    • 3 Pages
    Satisfactory Essays
  • Satisfactory Essays

    One of the studies titled “Service quality and customer satisfaction of a UAE-based airline: An empirical investigation” goes ahead to identify six different dimensions in relation to the quality of service provided in Dubai in relation to the airlines of Dubai. Furthermore, the paper successfully established links in the following factors pertaining to the Quality of Service, Corporate and Social Image of the Service Provider, Expectations of the Customer, Value that is Perceived for the Service, Satisfaction Level of the Consumers, and Customer Loyalty to the Brand. Furthermore, the empirically performed study mentions that the customer satisfaction can lead to brand loyalty which can lead to consistent…

    • 938 Words
    • 4 Pages
    Satisfactory Essays