[{"data":1,"prerenderedAt":94},["ShallowReactive",2],{"research-hkust-researchers-analyze-reputation-investment-strategies-for-green-skies-insights-on-herd-effects-and-customer-heterogeneity":3},{"id":4,"title":5,"body":6,"cover":79,"date":80,"description":76,"extension":81,"link":82,"meta":83,"navigation":84,"path":85,"researchId":86,"seo":87,"slug":88,"source":89,"stem":90,"tags":91,"__hash__":93},"research\u002Fresearch\u002F30-hkust-researchers-analyze-reputation-investment-strategies-for-green-skies-insights-on-herd-effects-and-customer-heterogeneity.md","HKUST Researchers Analyze Reputation Investment Strategies for Green Skies: Insights on Herd Effects and Customer Heterogeneity",{"type":7,"value":8,"toc":75},"minimark",[9,22,26,35,43,51,54,62,65],[10,11,12,13,12,18],"figure",{},"\n  ",[14,15],"img",{"src":16,"style":17},"https:\u002F\u002Fmedia.meteonex.hkust.edu.hk\u002Fportals\u002FCCRS\u002Fpublic\u002Fimages\u002Fresearch\u002Fjian_and_member.png","width: 70%",[19,20,21],"figcaption",{},"Prof. JIAN Sisi(left) and her team member(right).",[23,24,25],"p",{},"With the increasing focus on Environmental, Social, and Governance (ESG) and the International Air Transport Association (IATA)'s carbon reduction targets, airlines are implementing strategies such as Sustainable Aviation Fuel (SAF) and participating in the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) to enhance their corporate social responsibility (CSR). However, the high production costs of SAF present challenges in balancing CSR efforts with profitability.",[10,27,12,28,12,32],{},[14,29],{"src":30,"style":31},"https:\u002F\u002Fmedia.meteonex.hkust.edu.hk\u002Fportals\u002FCCRS\u002Fpublic\u002Fimages\u002Fresearch\u002Fgreen_skies1.png","width: 80%",[19,33,34],{},"Fig. 1. Carbon Emission Reduction Services Offered by Airline Carriers.",[23,36,37,38,42],{},"This study, led by ",[39,40,41],"em",{},"CCRS member Prof. JIAN Sisi",", investigates how CSR reputation, particularly regarding the adoption of SAF, affects airlines' investment and pricing strategies. A two-stage sequential decision model was developed to analyze the interactions among CSR reputation, pricing strategies, herd effects, and customer heterogeneity. The model distinguishes between two pricing strategies: uniform pricing with standard green services and differentiated pricing with tailored services.",[10,44,12,45,12,48],{},[14,46],{"src":47,"style":31},"https:\u002F\u002Fmedia.meteonex.hkust.edu.hk\u002Fportals\u002FCCRS\u002Fpublic\u002Fimages\u002Fresearch\u002Fgreen_skies2.png",[19,49,50],{},"Fig. 2. The herd effects in the airline industry.",[23,52,53],{},"The results demonstrate that while herd behavior incentivizes investments in reputation, a critical threshold determines the relative effectiveness of uniform versus differentiated pricing. The inherent costs associated with implementing differentiated pricing demand greater efficiency gains to surpass those achievable through uniform pricing.",[10,55,12,56,12,59],{},[14,57],{"src":58,"style":31},"https:\u002F\u002Fmedia.meteonex.hkust.edu.hk\u002Fportals\u002FCCRS\u002Fpublic\u002Fimages\u002Fresearch\u002Fgreen_skies3.png",[19,60,61],{},"\n    Fig. 3. Changes of airline’s investment and pricing strategies with β (Sensitivity coefficient\n    of the herd effect) and η (The integrated efficiency indicator).\n  ",[23,63,64],{},"These findings offer valuable managerial insights for government and airline investment policies. From a governmental perspective, promoting environmental investment by airlines can be facilitated through instrument such as leveraging public credibility to emphasize the need for carbon reduction initiatives, utilizing advertising to provide free publicity for leaders in carbon reduction, and offering subsidies for SAF. These approaches can effectively reduce the costs associated with reputation investment for airlines, ultimately encouraging them to cultivate a stronger environmental reputation.",[23,66,67,68],{},"Link of the article: ",[69,70,71],"a",{"href":71,"rel":72,"target":74},"https:\u002F\u002Fwww.sciencedirect.com\u002Fscience\u002Farticle\u002Fpii\u002FS0191261526000135",[73],"nofollow","_blank",{"title":76,"searchDepth":77,"depth":77,"links":78},"",2,[],"https:\u002F\u002Fmedia.meteonex.hkust.edu.hk\u002Fportals\u002FCCRS\u002Fpublic\u002Fimages\u002Fresearch\u002Fcover\u002Fid30.png","2026-03-10","md",null,{},true,"\u002Fresearch\u002F30-hkust-researchers-analyze-reputation-investment-strategies-for-green-skies-insights-on-herd-effects-and-customer-heterogeneity",30,{"title":5,"description":76},"hkust-researchers-analyze-reputation-investment-strategies-for-green-skies-insights-on-herd-effects-and-customer-heterogeneity","local","research\u002F30-hkust-researchers-analyze-reputation-investment-strategies-for-green-skies-insights-on-herd-effects-and-customer-heterogeneity",[92],"carbon","36qsvZ-f7mzEZzZRc7oHGUGqLxuh8F7ruRe_567Ml58",1792997703019]