Environmental marketing in the airline sector

327 Pages·2017·3.65 MB·English

Loughborough University
Institutional Repository
Environmental marketing in
the airline sector: an
evaluation of market
segments, green image and
eco-positioning
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Additional Information:
• A Doctoral Thesis. Submitted in partial fulfilment of the requirements
for the award of Doctor of Philosophy of Loughborough University.
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Publisher: (cid:13)c Robert J.P. Mayer
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Environmental Marketing in the Airline Sector:
An evaluation of market segments, green image and
eco-positioning
by
Robert J. P. Mayer

A Doctoral Thesis
Submitted in partial fulfilment of the requirements
for the award of
Doctor of Philosophy of Loughborough University

May 2013
© by Robert J. P. Mayer 2013
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Author: Robert Mayer
Title: Environmental Marketing in the Airline Sector: An evaluation of market
segments, green image and eco-positioning
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IV
ABSTRACT
The environmental impacts of air travel have become more prominent.
Governments and environmental groups have increasingly focussed on the
effect that air transport has on the environment, and airlines have started to
respond to the increasing awareness of their environmental impacts. The aim
of this research is to develop an understanding of how leisure air travellers
perceive the environmental marketing mix of airlines. Resource-Advantage
Theory is used to analyse green marketing in the airline sector. This theory
will be extended to the airline sector by establishing green market segments,
analysing green brand images among air travellers and evaluating Market-
Orientation Strategy. The data for this research stems from a large,
quantitative survey conducted at Liverpool John Lennon Airport. Using
attitudinal and behavioural variables, five leisure air travel segments are
identified.
Some market segments perceive certain marketing initiatives as more
effective in addressing the environmental impact of air transport than others
and are also more likely to take up certain initiatives. Segmenting the market
enables airlines to use their green marketing mix in a more targeted way.
Many passengers differentiate airlines based on their environmental image.
Some airlines are perceived as more environmentally-friendly than others.
Yet, the business model does not affect the environmental image, while
having flown with an airline has a positive impact on green image in many
cases. Green communication is key for airlines, as actual environmental
efficiency does not affect the eco-positioning of the airline. Yet it is important
that any environmental claims are substantiated, as environmental groups and
government regulators might address these otherwise. Three case studies
(Virgin Atlantic, easyJet and Flybe) discuss that while all three airlines have
applied a green marketing mix, only two (Virgin Atlantic and easyJet) are able
to benefit from this in their environmental image.
The thesis addresses the importance and relevance of Resource-Advantage
Theory in airline marketing research. This theory proves to be an appropriate
and necessary underpinning for green airline marketing, an area that has
V
received little attention in theory application. The theory can be used to
explain why green marketing segments can be identified in airline leisure
markets and why airlines should adopt a green marketing mix to enhance their
green brand-equity. These aspects are supported by the data collected and
analysed. The research shows that an understanding of passenger
perceptions with regard to green marketing is highly relevant for airline
marketing managers, in order for them to establish a successful green
marketing mix.
Key Words: Airline marketing; green marketing; market segmentation; brand
image; leisure air travel; environment
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ACKNOWLEDGMENTS
First of all I would like to thank my parents for their encouragement and
support over the years. Without them, I would not have been able to start my
undergraduate degree, master‟s degree and subsequently this doctorate.
Special thanks go to my two supervisors, Dr. Tim Ryley and Dr. David
Gillingwater, for all their helpful feedback, guidance and comments while
doing my PhD. Their support was of great help in shaping this research.
I would also like to thank my colleagues at the University of Huddersfield for
generating a great environment to work in, which made the combination of
working and studying much easier.
I am particularly thankful to Robin Tudor of Liverpool John Lennon Airport who
gave me access to the airport for conducting the survey and thanks to all the
hundreds of anonymous respondents who filled in the questionnaire while
waiting for their flights.
Finally, I would like to thank my friend James for his support over the years.
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ABBREVIATIONS
AAGR .......... Average Annual Growth Rate
AEA ............. Association of European Airlines
ANOVA ....... Analysis of Variance
ASA ............. Advertising Standards Agency
BBC ............ British Broadcasting Corporation
C ................. Cluster
CAA ............ Civil Aviation Authority
CC ............... Cheap and Cheerful Travellers
CEO ............ Chief Executive Officer
CIM ............. Chartered Institute of Marketing
CO .............. Carbon Monoxide
CO ............. Carbon Dioxide
2
CSR ............ Corporate Social Responsibility
DEFRA ........ Department for Environment, Food and Rural Affairs
df ................. Degrees of Freedom
DfT .............. Department for Transport
e.g. .............. exempli gratia (for example)
ELFAA ........ European Low Fares Airline Association
ES ............... Environmental Sympathisers
et al. ............ et alii (and others)
ETS ............. Emissions Trading Scheme
EU ............... European Union
FSNA .......... Full-service Network Airline
GDP ............ Gross Domestic Product
H O ............. Hydrogen Oxide (Water)
2
HC ............... Hydrocarbons
i.e. .............. id est (that is)
IATA ............ International Air Transport Association
ICAO ........... International Civil Aviation Organization
IPCC ........... Intergovernmental Panel on Climate Change
MtC ............. Million Tonnes of Carbon Equivalent
n.d. .............. no date
NB ............... Nota bene (note)
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