The Effects of Green Practices and Green Image on Customer Perception: Case of Airline Industry

This study attempts to evaluate the effects of green image and brand image on passenger satisfaction and loyalty. This research also investigates the moderating effects of green practices on the relationships between green image and brand image on passenger satisfaction as well as link of satisfaction and loyalty. The hypotheses developed are based on Theory of Planned Behavior which has been checked with data obtained from 542 passengers who travelled by airline companies in two international Airports of Larnaca, Cyprus and Hamburg, Germany. Structural Equation Modelling (SEM) method applied to test measurement and proposed model. Results revealed that green image enhance passenger satisfaction and loyalty. Brand image boosts passenger satisfaction that leads to loyalty towards the airlines. Green practices moderated the effect of green image on passenger satisfaction and loyalty. The relationship between green image and customer loyalty in airlines is moderated by green practices. Managerial and research recommendations and limitations of the study are presented at the end of the research. Keywords: Green Practices, Green Image, Brand Image, Cyprus, and Hamburg