FROM CSR TO SERVICE QUALITY: UNVEILING THE KEY DRIVERS OF CUSTOMER LOYALTY FOR INDONESIA'S FLAG CARRIER

To stay ahead in the competitive airline industry, various efforts are made to maintain consumer loyalty amidst numerous airline options. Companies engage in Corporate Social Responsibility activities as a marketing strategy. These efforts support sustainability, enhance corporate image, and strengthen customer loyalty. However, relying solely on social activities is not enough to boost customer loyalty. In such a competitive aviation industry, airlines must also focus on business activities related to customers, influenced by service quality. This study examines the impact of CSR and service quality on corporate image and customer loyalty of airlines in Indonesia. Using a quantitative approach, questionnaires were distributed online to 319 respondents. Data was processed using SmartPLS software for hypothesis testing. Out of 16 hypotheses, 14 were accepted, indicating a stronger direct relationship between service quality towards corporate image and customer loyalty compared to CSR. Additionally, the mediating influence of corporate image was identified.