Modified Pyramid of CSR for Corporate Image and Customer Loyalty: Focusing on the Moderating Role of the CSR Experience

Abstract

The current study aims to suggest a modified pyramid of corporate social responsibility (CSR) in the airline industry and find the moderating effects of consumer’s CSR experience (CSRE). Although previous studies proved the positive effects of CSR, there are surprisingly few research studies that incorporate Carroll’s fundamental CSR and specific issues of environmental responsibility in the airline industry as the integrated model. Thus, we suggest an alternative perspective of CSR, which can apply exclusively in the airline industry. Second, the moderating role of CSRE is demonstrated in a critical manner. To be specific, we hypothesize that sharing the same experience of altruistic motives may increase intimacy between the company and consumers, which affects a positive CSR evaluation. Therefore, consumers sharing the CSRE may perceive the CSR initiative more positively when compared to those who were not involved in the CSR programs before. By using the structural equation model (SEM) and ordinary least square (OLS) regression, we examined the effects of the modified pyramid of CSR on the corporate image (CI) and the moderating role of CSRE on customer loyalty (CL). The findings suggest that airline managers should consider environmental responsibility in CSR activities and design a variety of programs that should be designed to enhance consumers’ CSRE.