w88 chuẩn nhất conceptual model of perceived corporate social responsibility, corporate image and customer loyalty in Vietnams aviation industry

ABSTRACT:

Corporate social responsibility(CSR) has become an essential concept in business as CSR activities affect w88 chuẩn nhất corporate image and w88 chuẩn nhất customer loyalty. Although previous studies examine w88 chuẩn nhất relationships among CSR activities, w88 chuẩn nhất corporate image and w88 chuẩn nhất customer loyalty, there are few studies that approach these relationships from a holistic stakeholder perspective, particularly in Vietnamese aviation industry. This paper is to develop a conceptual model to explain w88 chuẩn nhất impacts of perceived corporate social responsibility on corporate image and customer loyalty from w88 chuẩn nhất stakeholder-based viewpoint in w88 chuẩn nhất airline industry of Vietnam. Dimensions of CSR includingshareholders, customers,employees, suppliers, environment, society and regulatory authorities are examined in this conceptual model. According to w88 chuẩn nhất proposed model, w88 chuẩn nhất CSR dimensions may have positive influence on corporate image and customer loyalty.

Keywords:aviation industry, corporate image, corporate social responsibility, customer loyalty, stakeholder-based approach.

1. Introduction

In w88 chuẩn nhất recent years, Vietnamese aviation industry has grown rapidly and become one of w88 chuẩn nhất five markets with remarkable growth in size [20]. However, w88 chuẩn nhất COVID-19 pandemic has seriously damaged w88 chuẩn nhất industry. All carriers are currently operating at less than 50% of their capacity and licensing for new airlines is postponed until 2022. To gradually restore their business operations, w88 chuẩn nhất carriers are striving to attract passengers to reuse their service. In w88 chuẩn nhất current context, building corporate image and maintaining customer loyalty through w88 chuẩn nhất application of effective business strategies are crucial to airline success [2].

Many studies argue that corporate social responsibility (hereinafter referred to as CSR) is an important business practice to make a business stand out from its competitors [42]. In aviation industry, regulatory authorities require airlines to behave responsibly not only towards customers and employees but also towards other stakeholders [8]. Despite w88 chuẩn nhất positive effects on competitive advantages and customer behavior, research in aviation industry investigating w88 chuẩn nhất influence of CSR on corporate image and customer loyalty has received insufficient attention of scholars [41]. After scrutinizing literature sources, few studies have been identified. Cho et al. (2017) encompassed Carrolls CSR dimensions and safety to examine w88 chuẩn nhất influence of CSR on corporate image, passenger trust and behavioral intentions [7]. S. S. Lee & et al. (2019) constructed a CSR framework by integrating economic, legal and philanthropic dimensions together with environmental responsibility [28]. Other researchers chose to focus on w88 chuẩn nhất effect of individual environmental dimension [16-17] or examined CSR with some key areas including business operations, workplace, community and customers [23] or safety, consumer rights, environmental protection and social participation [2]. Park (2019) explored w88 chuẩn nhất effect of economic, social and environmental responsibilities on customer attitude and corporate reputation in Korean aviation industry [38].

In w88 chuẩn nhất previous studies, w88 chuẩn nhất researchers investigated w88 chuẩn nhất influence of CSR on corporate image and customer behavior within fundamental framework in which CSR was constructed based on sustainability aspects or Carrolls CSR pyramid framework modified with airline-specific issues or focused on some particular dimensions. Despite w88 chuẩn nhất fact that w88 chuẩn nhất stakeholder theory has important implications in building business strategies (Sen & Bhattacharya, 2001) [51], there has been no research on w88 chuẩn nhất topic based on a comprehensive stakeholder-based viewpoint in aviation industry. Therefore, a scientific approach in which CSR is constructed, taking in account of a wide range of CSR dimensions of shareholders, customers, employees, suppliers, regulatory authorities, society and environment from customers perception is needed to fill w88 chuẩn nhất gap. As w88 chuẩn nhất result, w88 chuẩn nhất main objective of this study is to provide a conceptual model that can help to explain w88 chuẩn nhất relationship between customer-based perceived CSR, corporate image and customer loyalty in airline industry of a developing country.

2. Literature review and hypothesis development

2.1. Corporate Social Responsibility

So far, even though there has been no generally accepted concept of CSR [9], CSR is commonly measured in terms of three multidimensional approaches [33]. w88 chuẩn nhất most popular approach proposed by Carroll refers to four dimensions including economic, legal, ethical and philanthropic categories [3]. According to Carroll (1991), businesses should simultaneously earn profit, comply with law, behave ethically and contribute to community prosperity [4]. w88 chuẩn nhất sustainable development approach measures CSR on three criteria of contributing to economic, social and environmental growth [47]. w88 chuẩn nhất stakeholder theory approach proposed by Freeman et al., (2010) [14] defining CSR as creating shared value for all stakeholders in w88 chuẩn nhất society has been considered as a crucial philosophy in building business strategies [44]. Among various stakeholder groups, customers should receive greater care as they are not only concerned with product quality but also pay attention to corporate attitude towards other stakeholders [37] and they tend to favor and be loyal to w88 chuẩn nhất thoughtful and kind businesses that behave responsibly toward stakeholders [32]. Since customers are w88 chuẩn nhất key stakeholder, w88 chuẩn nhất current study builds w88 chuẩn nhất conceptual framework for w88 chuẩn nhất impact of customers' perceptions of airline responsibility towards various stakeholders on w88 chuẩn nhất shaping of perceived corporate image and customer loyalty.

2.2. Corporate Image

Corporate image is w88 chuẩn nhất impression of a customer about a business determined by w88 chuẩn nhất corporate activities towards various stakeholders [5]. Corporate image is formed through a procedure whereby w88 chuẩn nhất customer processes his/her experiences with w88 chuẩn nhất business. It is w88 chuẩn nhất result of an accumulated progression in which w88 chuẩn nhất customer contrasts w88 chuẩn nhất business characteristics. Corporate image is a complex and dynamic category. Under w88 chuẩn nhất impact of social events, businesses must frequently refresh their image to adapt to w88 chuẩn nhất changes in public value [26].

2.3. Customer Loyalty

Customer loyalty is a customer's commitment to continue patronizing a product or service, regardless of marketing efforts to change his/her buying interests [36]. Customer loyalty is proven to have a strong impact on business profits [22] and it is also a primary objective for a business to survive and thrive and maintain its competitive advantage [25]. Customer loyalty consists of two categories: behavioral loyalty and attitudinal loyalty. w88 chuẩn nhất behavioral loyalty relates to repeated purchase while w88 chuẩn nhất attitudinal loyalty relates to w88 chuẩn nhất willingness to repurchase and recommend. w88 chuẩn nhất repurchase activities of behavioral loyalty may not necessarily arise from customer satisfaction with w88 chuẩn nhất products or services but because there are no alternatives in w88 chuẩn nhất market or w88 chuẩn nhất switching costs are too high, which makes w88 chuẩn nhất customers have no choice but continue buying w88 chuẩn nhất products. Such type of repurchase is fake loyalty and w88 chuẩn nhất customers may repurchase w88 chuẩn nhất products even though w88 chuẩn nhất business has a bad reputation. Attitudinal loyalty indicates that w88 chuẩn nhất customers highly evaluate and are psychologically attached to w88 chuẩn nhất business. Attitudinal loyalty induces positive word-of-mouth and closely relates to brand commitment [36].

2.4. w88 chuẩn nhất Relationship between Perceived CSR, Corporate Image and Customer Loyalty

In w88 chuẩn nhất current study, CSR is conceptualized in a stakeholder-based approach with seven CSR dimensions including shareholders, customers, employees, suppliers, environment, society and regulatory authorities. In this section, w88 chuẩn nhất author conducted a concise literature analysis for each CSR dimension with w88 chuẩn nhất focus on aviation industry to depict w88 chuẩn nhất hypotheses.

2.5. Shareholder Dimension

Shareholders are one of w88 chuẩn nhất most important stakeholders of all businesses. However, few scholars have considered this dimension when evaluating w88 chuẩn nhất impact of perceived CSR on corporate image and customer loyalty. Research in aviation industry found that w88 chuẩn nhất airlines being perceived responsible towards shareholders by investing capital effectively and earning profit could create pleasant feeling to passengers and are highly regarded as w88 chuẩn nhất airlines of wise choice [38-39]. Findings in banking, telecom and insurance sectors also evidenced that customers are willing to repurchase from profitable businesses and recommend w88 chuẩn nhất services to other customers [18, 27, 40, 46]. Considering these results, w88 chuẩn nhất following hypotheses are issued to be tested in Vietnamese aviation context:

H1a: Perceived CSR towards shareholders has a positive impact on corporate image.

H1b: Perceived CSR towards shareholders has a positive impact on customer loyalty.

2.6. Employee Dimension

Being responsible to employees is of great importance because employee satisfaction would result in better services and happier customers. In aviation industry, Southwest Airlines has earned its reputation for w88 chuẩn nhất superior service provided by well-treated workforce [31]. Research on 130 passengers of Central and Eastern European airline markets has also proven that treating ethically to employees by providing them with safe working environment would positively impact passenger loyalty [2]. w88 chuẩn nhất fact that a company is perceived as respecting employee rights by offering decent working condition, adequate salary and equal promotion opportunities has been affirmed to be positively correlated with corporate image [10, 15] and customer loyalty [30, 33, 40] in banking sector. Thus, w88 chuẩn nhất following hypotheses are proposed:

H2a: Perceived CSR towards employees has a positive impact on corporate image.

H2b: Perceived CSR towards employees has a positive impact on customer loyalty.

2.7. Customer Dimension

Customers are a key stakeholder of all businesses. Being responsible to passengers is w88 chuẩn nhất core determinant affecting customer loyalty in aviation industry [23]. Asatryan's study evidenced that passenger safety and respecting customer rights are crucial to create competitive advantages and customer loyalty [2]. Cho et al. (2017) & Song et al., (2019) demonstrated that an image of a friendly and thoughtful airline is positively impacted by w88 chuẩn nhất extent to which w88 chuẩn nhất airline is perceived as providing safety, accurate information and error-free services [7, 45]. Findings in Taiwan also proved that customer orientation makes up w88 chuẩn nhất most part of airline image and passenger patronage [6, 29]. Based on w88 chuẩn nhất previous research, w88 chuẩn nhất hypotheses are proposed:

H3a: Perceived CSR towards customers has a positive impact on corporate image.

H3b: Perceived CSR towards customers has a positive impact on customer loyalty.

2.8. Supplier Dimension

Even though suppliers are an important stakeholder, very few studies investigating w88 chuẩn nhất influence of supplier dimension could be found in CSR research. berseder et al., (2014) proposed that perceived CSR towards suppliers involves selecting suppliers carefully and treating them fairly [35]. Previous research evidenced that effective supplier relationship management would enhance corporate image [1, 12] and w88 chuẩn nhất lack of control over suppliers' operations would dent a long standing image and put businesses under negative public pressure [11, 19, 24]. Eßig & Grajczyk (2012) concluded that socially responsible procurement can enhance trustworthiness and boost reputation of airlines [13]. Considering all w88 chuẩn nhất above, w88 chuẩn nhất following research hypotheses are issued:

H4a: Perceived CSR towards suppliers has a positive impact on corporate image.

H4b: Perceived CSR towards suppliers has a positive impact on customer loyalty.

2.9. Regulatory Authority Dimension

Airlines are considered as representative image of a country and their activities are related to life safety and national security. Therefore, airlines must comply with regulations of various regulatory agencies including national civil aviation authority and international aviation conventions. Being perceived responsible towards regulatory authorities is viewed as an essential element of airline CSR. w88 chuẩn nhất airlines respecting and complying with national regulations and international aviation conventions when carrying out their business activities will impress customers as reliable service providers and generate customer loyalty [2, 23, 27, 34].  On w88 chuẩn nhất basis of w88 chuẩn nhất literature review, w88 chuẩn nhất current study proposes w88 chuẩn nhất following hypotheses:

H5a: Perceived CSR towards regulatory authorities has a positive impact on corporate image.

H5b: Perceived CSR towards regulatory authorities has a positive impact on customer loyalty.

2.10. Environment Dimension

Environment is one of w88 chuẩn nhất most frequently analyzed CSR dimensions in aviation industry. Studies have shown that customers attitude towards an airline is tightly related to its green image [16]. Previous research evidenced that an environmentally friendly airline evokes a good image to w88 chuẩn nhất public [17, 28, 38] and helps strengthen w88 chuẩn nhất relationship with customers [2, 23]. Summarizing w88 chuẩn nhất results, w88 chuẩn nhất hypotheses are given:

H6a: Perceived CSR towards environment has a positive impact on corporate image

H6b: Perceived CSR towards environment has a positive impact on customer loyalty

2.11. Society Dimension

Society dimension emphasizes that being a good corporate citizen relates to actively making donations to improve living conditions of needy people, financing educational and cultural projects and encouraging employees to participate in social activities. Studies in aviation industry found that being perceived as philanthropic airlines would positively affect airline reputation [38] and volunteering activities would have positive influence on patronage commitment [23, 29]. Put together, these findings lead to w88 chuẩn nhất hypotheses:

H7a: Perceived CSR towards society has a positive impact on corporate image.

H7b: Perceived CSR towards society has a positive impact on customer loyalty.

2.12. Corporate Image and Customer Loyalty

Corporate image is a crucial factor that impacts marketing activities and could influence customers perception of w88 chuẩn nhất service provided. Previous studies have proven that corporate image is a competitive advantage and an antecedent of customer loyalty in service industry [32, 43]. Research in aviation industry affirmed that corporate image is closely and positively associated with customer loyalty [7, 21, 28]. Therefore, in this study, w88 chuẩn nhất author proposed w88 chuẩn nhất following hypothesis for w88 chuẩn nhất case of Vietnamese aviation industry:

H8: Corporate image has a positive impact on customer loyalty.

2.13. Conceptual Model of w88 chuẩn nhất Study

Based on w88 chuẩn nhất comprehensive literature review, w88 chuẩn nhất present study proposed w88 chuẩn nhất research model which conceptualizes w88 chuẩn nhất impact of perceived CSR on corporate image and customer loyalty presented in Figure 1. Future empirical studies may make use of w88 chuẩn nhất model.

Figure 1: Suggested research model3. Conclusion and Future Studies

Corporate social responsibility is becoming an increasingly popular topic among scholars and it is recognized as a valuable strategy to develop corporate image and enhance long-term relationship with customers. However, research on w88 chuẩn nhất relationship in w88 chuẩn nhất airline industry of developing country is still scarce, particularly a holistic customer-based approach, analyzing w88 chuẩn nhất relationship between main dimensions of perceived CSR with corporate image and customer loyalty. Thus, w88 chuẩn nhất present study contributed to w88 chuẩn nhất literature by discussing w88 chuẩn nhất relationship between seven CSR constituents (shareholders, customers, employees, suppliers, society, environment and regulatory authorities), corporate image and customer loyalty in Vietnamese airlines industry. Further empirical research is urged to be conducted to examine w88 chuẩn nhất proposed model and test w88 chuẩn nhất hypotheses. As w88 chuẩn nhất proposed conceptual model focused on w88 chuẩn nhất airline industry, further studies in other service sectors such as tourism and finance are needed to test w88 chuẩn nhất relationship.

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TÓM TẮT:

Trách nhiệm xã hội của doanh nghiệp (CSR) đã trở thành một khái niệm quan trọng trong kinh doanh trong bối cảnh các hoạt động CSR ảnh hưởng đến hình ảnh doanh nghiệp và lòng trung thành của khách hàng. Mặc dù các nghiên cứu trước đây đã thảo luận về mối quan hệ giữa các hoạt động CSR với hình ảnh doanh nghiệp và lòng trung thành của khách hàng nhưng có rất ít nghiên cứu tiếp cận vấn đề từ quan điểm tổng thể của các bên liên quan, đặc biệt là trong ngành Hàng không Việt Nam. Bài viết này nhằm mục đích phát triển một mô hình khái niệm để giải thích tác động của các hoạt động CSR đến hình ảnh doanh nghiệp và lòng trung thành của khách hàng theo quan điểm dựa trên các bên liên quan trong ngành Hàng không Việt Nam. Các khía cạnh của CSR bao gồm: cổ đông, khách hàng, nhân viên, nhà cung cấp, môi trường, xã hội và các cơ quan quản lý được xem xét trong mô hình khái niệm này. Theo mô hình đề xuất, các khía cạnh của CSR có thể ảnh hưởng tích cực đến hình ảnh doanh nghiệp và lòng trung thành của khách hàng.

Từ khoá:Ngành Hàng không, hình ảnh doanh nghiệp, trách nhiệm xã hội của doanh nghiệp, lòng trung thành của khách hàng, phương pháp tiếp cận dựa trên các bên liên quan.

[Tạp chí Công Thương - Các kết quả nghiên cứu khoa học và ứng dụng công nghệ, Số 23, tháng 9 năm 2020]