The Effect of Service Quality and Sustainability Practices on Brand Equity: The Case of Korean Air Passengers

Abstract

A company’s brand equity is built through sustainable development. Sustainability practices are increasingly being adopted by a wide range of organizations, with the aviation industry being particularly prominent. This trend can play a key role in enhancing brand equity within the Korean aviation sector. Specifically, the focus is on whether sustainability practices contribute positively to brand value within the aviation industry. The primary objective is to examine how service quality and sustainability practices influence airline brand equity through mediating factors. While previous research has predominantly explored airline service quality, this study aims to analyze the influence of sustainability practices on brand equity, particularly targeting Korean Air, amid the increasing interest in sustainability research within the airline industry. Additionally, a survey was conducted on 379 Korean Air passengers, and structural equation modeling (SEM) was employed for analysis. The results indicate a strong positive correlation among service quality, sustainability practices, and brand equity, suggesting heightened passenger interest in airline sustainability practices, along with service quality. Hence, this theoretical investigation signifies a potential positive impact on the Korean aviation industry.