Comparison of Power Influence Factors Shaping Loyalty Indonesian Domestic Airlines
EuropeanJournalof
Businessand
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ISSN2222-1905
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ISSN 222?-2839{Online)
V o l7 No 1 1
2415
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Comparisonof Power InfluenceFactorsShapingLoyalty
IndonesianDomesticAirlines
Reni HeviandriRiandarinir- Ujang Sumanvan2 Lilik Noor Yuliati2 Kirbrandokol
l.GraduateSchoolof Managernent
and Business,Bogor AgricultureLlniversity,Indonesia
2.Depafimentof Farnilyand ConsunrerSciences,Bogor AgricultureUniversity,Indonesia
* E-rnailof the correspondins
author:renisuko@grnail.com
A bstract
perceptionof the quality of airline serviceLFA lower than the FSA for airline passengers
pay the
Passenger
ticket realizedwith relativelycheaperrates.This study airnedto analyzethe differencesin causalitybetween
variablesexpectedto affect the flight of custonrerloy'alty.By using StructuralEquationModeling (SEM) this
paperexarninesthe relationshipcausalconstructsquality ofservice, price,and satisfaction,
to the irnageas rvell
as customerloyalty and LFA. FSA flight. The resultsindicatethat there are differencesin causalitybetween
custonlerloyalty nrodelsof FSA with LFA. The quality of serviceand price togethercreatesatisfactionand
FSA and LFA. Quality of servicehas a
encouragethe creationof a good inragein the minds of passengers
greaterinfluenceon satisfactionthan the price effect and the direct effect on the irrage quality of service is
greaterthan its indirect effect through satisfaction.FSA found that customersatisfactiondoes not encourage
lo1'alty.
loyalty,customersatisfactionLFA oppositeeff-ecton passenger
Keywords: CustomerSatisfaction,
CustomerLoyalty, Low Fair Airline, Full ServiceAirlines
t. Introduction
Flight Low Fare Airlines (LFA) into a new phenomenonas the impact of changesin the businessaviation
industryin severalcountries,includingIndonesia.The 2000swas the era of growth LFA flight in Indonesia.The
nurnberof airline LFA continuesto grow with the effectof an increasein passenger
numberssignificantlyfrom
provides
y,ear.
Intense
not
to
competition
between
airlines
only
an
opportunity
for
the companyto survive
),ear
and thrive and achievetheir businessobjectives,but also resultedin someairlinesare not able to survive or go
bankrupt.
Threeairlinesare consideredquite successfulin increasingthe numberof passengers
today is Garuda
Indonesia,Lion Air and Air Asia. TheseLFA continuesto grow and developthe businessdriversof changein
Garuda
the domesticairline industry,the impact on the changernap market share in getting the passengers.
lndonesiahas become the rrrarketleader rvith a master flight domesticand internationalmarket. Since the
presenceof LFA particularairline Lion Air and Air Asia, the nunrberof passengers
servedby both airlines,are
as the airline Garuda IndonesiaFull ServiceAirline
able to exceedthe growth in the number of passengers
(FSA).
intensecornpetitionwith
Someairline LFA useslow price strategyto attracta numberof passengers,
price differentiationas a parameterto force airlinesto enter into price conrpetitionor price war. The global
financial crisis of 2008 have an impact on the rvorld of transportationcost. irnpactof the crisis has pushed
passenger
flight businessgoalsand touristpassengers
choosethe low cost airlinesas a resultofreduced levelsof
welfare.In the last l0 yearstherehasbeena changein customerbehavioras well as the sensitivityof passenger
airlinesbusinesspurposeswherethe businessgoalsdomestictend to considerin choosingairline prices.Mason
(2002) provedthat 40% of short-haulpassenger
businessgoalsbecorneelasticto price and srvitchingfrorn FSA
conditionshave rnadethe changingdemographics
to airline LFA. Changesin technology'and macro-econornic
(Sumarwan201I ).
and lifestylesof custorners
t-FA passengers
not only considerthe price but alsothe qualityof servicewhen selectinga flight (Jou.
Lanr, Hensher,Chen and Kou 2008). Quality of service is an important factor to develop and maintain
(Park,Robertsonand Wu 2006). Passengers
relationshipswith custonrers
can assessand evaluatethe quality of
the airline througha comparisonbetweenexperiencesand their erpectationson a nurnberof attributesof the
service(Grdnroos2007).
(Saha,
The level of servicequality has a direct irnpacton the satisfactionof air transporlpassengers
Theingi 2009).Quality of servicehas a positiveinfluenceon interestrepeatpurchase,recommend,and choosea
better alternativein which three have a relationshipn'ith custornerloyalty,(Jones,Mothersbaugh,and Beatty
2000). One force airlines to survive in the increasinglyfierce cornpetitionis to create consumer loyalty.
of the sarneairline.
Consumerswho are loyal customerswho rnakerepeatpurchases
t-oyalty to the airline is a very compler phenomenonbecausemany backgroundfactorscustomers
of customerloyalty concludedthat the
becomeloyal to one parlicularairline.Someresearchon the antecedents
cost factors of quality of servicesoffered,custonrersatisfaction,airline irnage,as rvell as confidencein the
servicesreceived,or even a consufflerpreferencetowards a particularairline is affecting the willingnessof
t20
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consumersto re-usethe servicesof a the same airline. More specificallyForgas,Sanchez,
ancl palau (2010)
statedthat thereare differencesin the antecedents
of loyalty arnongcustomersLFA with the FSA.
This study aims to examinethe relationshipsbetrveenthe constructsof quality of service(pre-flight, in-f'light,
post-flight,and perceivedsafetl').price,satisfaction,rirrageand custornerloyaliy of the dornestic
flr'ghtsttratwili
distinguishbetweenthe LFA customersarrdFSA.
2 . L i t e r a t u r eR e v i e w
2 . 1 A i r l i n eI n d u s t r y ' B
s u s i n e s sM o d e l
T h e r ea r e t h r e em o d e l so f a v i a t i o nb u s i n e s isn I n d o n e s i an, a m e l yr n o d e l sF u l l S e r v i c eA i r l i n e ( F S A ) o r t h a t w e
are familiar with the traditionalcost,servicemodelsLor,vFareAirlines (LFA), and the ntixturebetweentlre two
servicemodels(full serviceairlinesand low fare airlines)(Manurung20 l0).
LFA or low-costairline is airlinesgenerallyoffer lower ratesby elinrinatingsonreof tlre servicesthat
are owned by traditionalairlines or FSA. The terrn in the aviation industryis actuallyreferringto the airline
which has a structureof lower operatingcoststhan their cornpetitors,but the terrn is often appliedalso to all
airlines with low ticket prices and lirnited services,regardlessof their operatingrnodels(Miller. Vandome
.McBrewster2009).
FSA conceptknown as the businessrnodelof traditionalairlines(legacycarriers),in this concept,the
enrphasisis completeand high quality servicesalso at a prerniunrprice. Servicesprovided is conrprehensive.
flexible flight frequency,the grant of loungefacilities,provisionof food and drink, looseseatand entertainrnent
facilitiesand so on, to supportquality services,airporl used also is the main airporl. Urrtil tlre year 20 12, in
Indonesia.Garudalndonesia,which onlv usesthe conceptof the FSA, but sincethe year 20 l3 appearedairline
Batik Air is the concepto1'theFSA.
The main differencebetrveenthe LFA and the FSA is the rate charged,fare differenceoccursbecause
ol'the cost of LFA able to cut unnecessary
costs arrdeliminatingservicesthat are not directlv relatedto the
operationand in principle can be acceptedby the customer.The cost differenceby Hanssonet al. (2003)
includessalesand reservation,servicein the plane,pilot salaries.aircraft ownership,maintenanceand ground
handling.
2.2 ConsumerBehavior
Consunrerbehavioris essentiallyto understand"rvhy do consur.ners
do rvlratthey do". Consumerbehavioris all
the activities,actions,as well as the psychologicalprocesses
that drive action at the tirne beforebuy, when to
buy. use,spendingand evaluateproductsand services(Sunrarwan2004). Decision-makingchoosingthe airline
is defined as activities underlakenby passengersfrorr beginning to recognizethe need, seek as rnuch
infonnationabout the existingairline, evaluateoptions,and finally decidedto rnakereservations
and purchase
a i r l i n et i c k e t so f c h o i c e .
2 . 3 Q u a l i t yo f S e r v i c e
Bern), Leonard.
Quality ol'serviceis a total experiencethat can only'be evaluatedb1,thecustomer(Pasuraman,
Zeithamal,Valarie I 988). According to Pasuramanel a/. ( 1985),there are trvo main factorsthat afJ'ectthe quality
ofservice that is ExpectedServiceand PerceivedService.Ifthe servicesreceivedor perceivedas erpected.then
the perceivedservicequality is good and satisfoing,if the servicesreceivedexceedconsunlerexpectations,
the
quality of serviceperceivedby the excellentand qualified.Conversely,if the servicesreceivedis lower than
expected,thenthe perceivedpoor qualityofservice (Ahna 2007).
Quality of service is an inrpofiantdetenninantof the behavior of customersatisfactiorland cost
(Sureshchanndar
et a|.2003; Ling, Lin and Lu 2005; Dagsrer,
Sweeneyand Johnson2007).Studiesshow that the
perceptionof servicequality affectsthe feelingof satisfaction,
which in turn affectsthe behaviorof loyaltv and
(Tanr 2000; Choi and Chu 2001; Petrickand Backnran2002). Passenser
post-purchase
perceptionofthe quality
of airline servicesis one of the nrain drivers of satisfactionand perceivedvalue. Failureto provide a quality
serviceto the customersalso can destroythe inragecan'ierand causea negativeeffect on customerlol,alty
(Archana&Subha2012).
The airlinethat is able to createand rnaintainquality of servicervill gain sonrebenefits,amongothers:
(l) establisha close relationshipbetweenthe airline passengers,
(2) provide a good basis for repurchase.(3)
(5)
passengers,
(4)
rvord-of-rnouth,
create
createa good reputationin the minds of
encouragethe loy,altyof
passengers,
and in the end (6) encouragingincreaseairline profits (Park et al. 2005; Rizan20 I 0). Good quality
of'serviceis a conrpetitivestrateg),forthe airlines,in additionto irnprovingsatisfactionis also able to increase
the airline'simagein the nrindsof customers,
the qualityof customerserviceis alsopushingfor a cornmitnrentto
the airline.which leadsto an increasein marketshare.
In general,the evaluationof the service processcan be divided into three distinct phases:pre(Kasperet ul. 2006), so that u,henadaptedinto the aviation
consumption,consumptionand post-consurnption
t21
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industry,the third stageis the pre-flight services(pre-t'light,in flight, in-flight) and post-tlightactivities(postflight), each stage,each containingseveralcustomer-oriented
activitiesand contributeto the total custolner
experience(Leong 2008). Identificationof the factorsof serviceq,ralityin the airline industryis done partly by
Ostrorvski1993;Sultanand Simpson2000; jaur et al 2002. Chang2002.Mazzeo2003; Park et aI.2004; Chen
a n dC h a n g2 0 0 5 ;L i o u a n d T z e n g 2 0 0 7 ) .
Dirnensionsof securityand safetyis the most inrportantdinrensionis usedto nteasurethe quality of
servicecost (Clemeset a|.2008), becausewhen choosingan airline, passengeraircraft safetyregardedas the
rnost irnportantcriteria (Gilberl and Wong 200i; Atalik and Ozel 2007). Safety and comfort are the most
instrumentalfactor in the selectionof Indonesianairlines (Marsetyawan2006). Indonesiahas a poor record
relatedto aviationsafet1,,
and accidentairline Air Asia QZ 8501 on Sunday,December28th, 20 l4 to add a bad
r e c o r dl b r f l i e h t l n d o n e s i a .
2.4 Price
Understanding
the price of customercognitiveconceptis somethingthat must be sacrificedto obtain several
typesof productsand services,in which the lower the perceivedprice,thenthe lower the perceivedsacrificeand
more satisfied custornersperceived price of the whole transactionwas created(Zeithaml 1988). Provide
appropriateprice to the customeris anotherway to achieveloyalty (Clemeset u\.2008); Chen et ul.20l l; Chen
and Hu 20 12). There is a relationshipbetweenthe reasonableness
of the price with satisfactionand loyalty in
servicecornpanies(Consuegraet al. 2007).Pricefairnessperceptionsare positivelyassociatedeitherdirectly or
indirectlythroughsatisfactionon customerloyalty (Bei and Chiao2001).
The reasonableness
ofthe price can be rneasured
throughatlributes(Consuegraet a\.2007):
l. Customersfeel payinga reasonable
price on a purchasetransactionfaithful.
2. Referenceprice level, where custornersfeel nornral if a product or servicesof a different kind of
cornpanies
are setat differentprices.
3. Policiesprice is detenninedby the companyare reasonable
and acceptable
to the customer.
4. Price set is an ethical,wheretlre customeris alrvaysnotified of price changesthat will be madeby the
companybeforethe new pricesare set.
2.5 CustomerSatisfaction
The conrpanyrecognizesthat customersatisf'action
is the nrainthing that shouldbe achievedby the conrpanyto
gain the loyalty of its customers.Satisfactionis a nrediatingvariablebetweenservicequality and custonrer
foyaltyso many satisfiedcustomersthat will providea high loyaltyto the cornpany(Akbar et al. 2010).
Studythe relationshipbetweensatisfactionand quality of serviceas well as its impact on loyalty has
been carriedout, among others,Lee, Graefe,& Burns (200a); Tian - Cole, Crompton,& Wilson (2002). The
resultsZins (2001) on the future of passenger
loyalty antecedents
in the commercialaviationindustryfound that
custolnersatisfactionrvith the brandimageand quality of serviceis an irnportantcolnponentto explainloyalty to
airlinepassengers.
The comparativestudy conductedby Bamford and Xystouri (2005) found that tlre failure of services
such as flight cancellation,diversion,delays,strikesand negativeattitudesof employeesis more comrnon in
LFA flight, so more prevalentcornplaintsin airlineserviceLFA comparedto FSA.
2 . 6 A i r l i n e sh n a g e
Corporateimage(the imageof the conrpany)can be consideredas a functionof the accunrulated
experienceof
the purchaseor consumptionand has trvo main components;functionaland emotional.Functionalcomponents
associatedwith real attributesthat can be easily measured;while the emotionalcomponentis relatedto the
psychologicaldimensionis rnanifested
by feelingsand attitudestowardan organization.This feelingcomesfrom
individualexperiences
with the organizationand processirrg
of infonnationaboutthe attributes,which constitute
a functionalindicatorof cornpanyimage(Tang2007). Imagepositivea positiveimpacton the conrpanyso as to
increasethe nutrrberof sales,othenvisenegativeimagecausedlossesto the company.Satisfactionfollolved by
the image of the company is irnportantin a construct(Cohen et a|.2006). hnage companiesaffectedby the
qualityof serviceand customersatisfaction,
which in turn affectcustomerloyalty(Tang2007; Kandampully,l lu
2007). Customerloyalty arisesthrough good image of the airline that is createdthroughthe irnprovementof
s e r v i c eq u a l i t ya n dc u s t o r n esra l i s l a c t i o n .
?.7 CustomerLoy,alty
Loyal customersare very attractiveto businesses
becausethey are lesssensitiveto price,tlrerefore,maintainand
increasethe number of loyal passengers
is a must for the airline to survive in the current situationof tight
cornpetition(Gomez, Arranz,Cillan 2006).
Factorsforrningcustomerloyalty is the quality of service,trust,
and custolnersatisfaction(Akbar and
I-uropcan.loumal of Businessand Managenrent
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ISSN 2222-1905 (Paper) ISSN 2222-2839(Online)
Vol.7.Noll.20l5
Parvez2009). The quality of servicesoffered,customersatisfactiontor servrcesreceived,or even a consumer
preferencetowardsa particularairlineis affectingthe willingnessof consurners
to re-usethe servicesof the same
airline(Hellier,Geursen,Carr, Rickard2002; Li, Lee 200 l).
Basedon the literaturedescribedabt, e, the conceptualmodel proposedin this study is :(Figurel)
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Figure l. Customerloyalty flights rnodel
3. Methodology,Variable and Data
3.1 Location and Time Researclt
The researchwas conductedfrom Februaryto March 20 14, with an interviewof the dornesticflight passengers
Airport,Jakarta(lndonesia).
departingthroughterrninals1,2 and3 Soekarno-Hatta
3.2 Method Of Collecting Data
This study was designedas a survey with quantitativedescriptiveapproachto obtain a picture, information,
explanationsand current conditionsrelated to customerloyalty. Data collectedby using questionnairesand
The samplesin this study using non-probabilitysampling
interviews(face to face interview)to the respondent.
design,the samplingtechniquethat doesnot give the samechanceor opportunityfor eachelementor memberof
the populationto be selectedinto the sarnple(Sekaran2003). Types of non-probabilitysamplingare purposive
sampling,the method of gatheringinfonnation from nrembersof the populationwho meet certain defined
criteria.
of the populationand the
The criteria used by the consideration(judgment)on the characteristics
aircraftover
pulposeof this study,in which the criteriausedin selectingthe samplein this studywas a passenger
| 8 yearsold, had beenusingtwo differentdornesticairlines.
Hair et al. (1998) recommendan appropriatesarnplesize rangedfrom 100 to 200, or a total of five
interviewedin this study were 352 respondents.
samplesfor eachparameterobservation.Respondents
3.3 Variable Description and Measurentenl
imagesand customerloyalty.
Latentvariablesusedin this study are servicequality,price,custonrersatisfaction,
lndicatorsfor eachlatentvariableare describedin Table |.
111
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Table l. Latentvariablesand their indicators
Construct
Dimension
I. ServiceQuality
Pre-flighl
l.
2"
3.
4.
5.
6.
7.
8.
9.
10.
I l.
Websiteservices
Frequcncyofflights
Convenienccof flight schcdule
Convenicnceofreservation and ticketing
Check-in service(waiting time, ef'ficieniy. etc)
Neatappearance
ofcmplolee
Customerscrviccenthusiasm
Flight on time
Inlbrmationflight dclal's
Compensationfor l'light delays
Tlre amount imposedfor overweight baggage
In-flight
l.
2.
3.
4.
5.
6.
7.
8.
9.
Seatcomfbrl
Seatspaceand legroorn
Clcanlinesson board
Cleirnliness
of restroom
Food and beverageserviccon board
Irntertainmentfacilities on board
Flight attendantsattitudes
Flight attendantsappearancc
Courtesyof employees
Post-flight
L
2.
Prorhptnessand accuracy ofbaggage dclivcry
Handlingol lossluggage
Indicator
i ff#,lill
l,ffi;j,3;'ill';!x'*'*.
Safety
2.
Price
l.
2.
3.
4.
5.
6.
Aircraft securitycheck belbre departure
Aircraft t1'pe
Physicalappearanceofaircraft
Flight safctyrecords
Aftention and aleftnessof the crew cabin to the safetl,and
comfbrt of passcngersduring the llight
Senseofsafety during the flight
l.
Fairnessthe oriceofairline rickets
3l;lfi"$'j,.*,'.ffi
,..,;..;";"
3. CustomcrSatisfaction
4. Image
l. How satisficdareyou r.viththescrviceoverall
|,
The {iompany'scomrnitmcntto always provide the
services
lharimpressed
themindsof consumeis
2. Thc company'scommitment
to the bestcompared
to other
airlines
3. Thcairlinccflbrtro maintain
thcrepuration/imagc
Measurementindicatorsusing a Likert scalewith categoryscale l-5: I - very dissatisfied,2: not satisfied,3 moderate,4 : satisfiedand 5 - very satisfied.
3.1 ProcessingMethodsand Datq Anal1,5ig
This studydataprocessingusingdescriptiveanalysisto get an overviewofthe characteristics
ofthe respondents,
and inferentialanalysisusing the StructuralEquationModel (SEM) to confinn that the model has been built.
Explainingthe contributionof each indicatorvariablesin the model are basedon measurements
Confirmatory
FactorAnalysis (CFA) and to test the causalitybetrveenthe constructsin the structuralmodel is basedon an
understanding
ofthe theoryas the studyofliterature.
Testson the suitabilityof the model usingcriteriaGoodnessOf Fit Index (GOFI), CFA is usedto test
the constructvalidity and reliabilityof the measurement
model. Hair et al. (2006) statedthat the factor loading
value of an indicatorin nteasuringthe latentvariablesas valid if the value is greaterthan 0.5 and significant.A
constructis said to reliably if the value of ConstructReliability (CR) is not less than 0.7, and the value of
VarianceExtracted(VE) is not lessthan 0.5. The influencetestsof the relationshipbetweenthe constructsusing
t-testto comparethe t-testwith t+able and we usedSPSS | 7 for descriptiveanalysisand Lisrel version8.3 for
124
I
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\\\.!]!lcgg
I S S N 2 2 2 2 - 1 9 0 5( P a p e r )I S S N 2 2 2 2 - 2 8 3 9( O n l i n e )
'-:'l
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SE,Manalysis.
3.5 H1;pothesis
'lowing
hypothesis:
Basedon the abovetheorystudyproposedthe f
H I : ServiceQuality influencethe satisfaction
H2: Loyalty influencethe Quality of Service
H3: Loyalty inl'luencethe ImageQuality Service
H4: l'he price influencethe satisfaction
H5: Priceinfluencethe Loyalty
H6: Satisfactioninfluencethe Irnage
H7: Satisfactioninfluencethe lo1'alty
H8: lmage influencethe Loyalty
4 . R e s u l t sa n d D i s c u s s i o n
1. I Descriptit,eAnah'sis
of the
tool in a population,the characteristics
is irnportantstatisticalmeasurernent
of respondents
Characteristics
as
well
as
expenditure,
rnonthly
nteasured
through
gender,
age,
incorne
in this study is describedon
respondents
into
divided
two
the
respondents
loyalty.
352
Of
with
customer
associated
educationand ernployrnentlevels
of the 352
groups. of which 222 respondentsas well have used the FSA also use the LFA. Characteristics
respondentswho becomesthe object of research,most of the respondelltswere male as much as 235 (66.8%),
have a greater
with the highestage range in tlre age range20-40 years,an age group in which the respondents
degreeof mobility than the age group Other respondentsso relatively frequenttravel both for office / work or for
was 38.89%privateemployeeswith educationalbackgroundBachelor
other purposes.Most of the respondents
degree(Table2).
Table2 Profileof respondents
ParticiPants
Description
Gender
Age
Education
0ccupation
Spending
Male
Female
2026 3l 36 *
-1146 5l 56 -
25 ycars
30 years
35 y'ears
40 years
45 years
50 1'ears
55 years
60 1'ears
Elementary
JuniorSchool
I ligh school
AssociateDegree
BactrelorI)egree
MasterDegrcc
PhDDegree
Frequency
"h
235
66.8
lll
JJ.z
85
77
57
a,t I
L+- |
25
t7
21.9
16.2
10.5
8.8
6.5
7.1
'1.8
+J
0.9
I.4
2.6.4
t2.2
)t
il
/.J
163
43
n
WhiteCollarEmployees
Civil Scrvanls
SelfEmployed
Student
[)roffesional
Uncmplolcd
t-t /
< IDR 2 million
> I D R2 m i l l - I D R4 m i l l
> l D R4 m i l l . l D R 6 m i l l
> l l ) R 6 n r i l- ll D R S m i l l
> IDR 8 mill
6l
| -)-)
70
{t
JJ
na
t8
4t,
47
40.J
12.2
0.6
38 . 9
19.9
t4.8
9.4
12.0
5.1
17.3
37.8
20.2
I 1.4
13.4
Loyalty developedfbllorvingthree stages,namely cognitive.affective,and conative.Usually become
loyal custornersfirst on cognitive aspects,then the affectiveaspects,and finally the conativeaspect.Table 3
who have usedthe FSA hasa level of asreementthat is different.some 77
explainsthat of the 222 respondents
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respondents(34.68%) is a customerwho has reachedthe level of Influencer,lo),alty Client (20.72oh),and
Pafiners(18.92%\as Table 3.
Table 3 Levelsof agreementIrSA custrtxer loyaltv indicator
Statement
Total
All airlinesarethesame(Shopper)
I will usethisairlineon thenextflight(Client)
I will alwaysusethis airlineasa partnerin my journey (Partner)
Because
manybenefits,I wouldrecommend
this airlinesto others(tnfluencer)
Total
Y"
57
46
42
77
25.68
20.72
18.92
34.68
222
100.00
The resultsshowedthat most.of the FSA customersalreadyat the level beganto be loyal clientsand
partnerto becomean influencer;only 25.680/o
saidthat all the airlinesare same(shopper).
Of the 352 respondentswho provide an assessment
of the level of agreementthat the LFA has a
(9:09%) is a custornerwho has reachedthe level of lnfluencer,loyalty Client
different,a total of 32 respondents
(1932%), and Partners(14.77%),but the very high numberof customerswho assumethat the LFA airlinessarre
(56.82%),as Table4.
as otherairlines(Shopper)of 200 respondents
Table4 Levelsof agreement[-FA customerloyalty indicator
Total
Statement
All airlinesare the same(Shopper)
I w i l l u s et h i s a i r l i n eo n t h e n e i t n i g f r tl C t i e n r ;
I rvill alwaysusethis airlineas u pJm"i in my journey (Partner)
Becausemany benefits.I would recommendthis airlines to others(lnfluencer)
200
68
52
Total
352
JL
'
s6.82
19.32
14.77
9.09
100.00
The resultsof this study showedthat the rnajorityof airline customersLIrA is a custon.ler
u'ho assurne
tlratall the airlinesare sanre.sincemany LFA airlinesrelativelyoffersthe sameproductso that the airline is able
to provide different services,routes and flight times rnore with price cheaperwould be preferredby LFA
customers.
1.2 AnulysisMeasut'ententModel
Inl'onnationon the level of agreementof each indicator can be read separately,but the explanationlatent
variablescannotbe done individuallybecauseof the aspectsof the relationship(correlation)betweenindicators
of each other. Sequentialeffectsoccur in a set of indicatorsin explainingthe latentvariables.Therefore,it is
necessary
that the measurement
model basedon the Cont'irmatoryFactorAnalysis(CFA) (Joreskogand Sorbom
1996)to explain tlre contributionof eaclrindicator.SEM providesfacilities UnrveightLeast Square(UL) to
determinethe performanceor contributionof each indicator in explaining her latent variables.Facilities
Unweight Least Square(UL) in the SEM would suspectthe magnitudeof the coefficientvalue measurement
rnodel.ConstructReliability(CR) is an indicatorof the ability to explainthe variable(frornthe aspectof quality)
and VarianceExtracted(VE) show the weight indicatoris able to explainthe latentvariables(quantityaspect).
resultsshow that thereare severalindicatorsto obtainload factor 2.51)
Testing found that the Quality of Service (Service Quality) positive and significant effect on
satisfaction(CustomerSatisfaction)and the Image of the airline (Airline Image) but no significanteffect on
customerloyalty (custornerloyalty). Image Quality of Servicedirect influence(tr - 0:50, t:8.4 1), greaterthatr
its indirecteffectthroughCustornerSatisfaction(0:08).
P r i c e( f a i m e s sp r i c e )a n d a s i g n i f i c a npt o s i t i v ee f f e c to n c u s t o m e sr a t i s f a c t i o(n) . : 0 : 1 9 , t : 3 . 4 5 ) b u t
n o s i g n i f i c a net f f e c to n C u s t o r n eLr o y a l t y( ) . : 0 . 0 0 1 , t : 0 : 0 1 ) , w h e n c o m p a r e dt o t h e p r i c e ,t h e nt h e i n f l u e n c e
of the SatisfactionQuality of Service(),: 0:53) is greaterthan the price effect (),: 0.19) towardssatisfaction.
Customersatisfactionpositiveand significanteffecton Airline Image(p : 0:16,t : 2.24) and CustornerLoyalty
( B : 0 : 2 5 ,t : 2 . 2 4 ) , s i m i l a r l yA i r l i n e I m a g es i g n i f i c a net f f e c to n l o y a l t y( p : 0 : 2 3 ,t : 3 . 0 9 ) .
Resultsof researchon customer loyalty LFA rnodelsshow different results,which affect service
quality indirectlyloyalty throughsatisfaction.PerceivedLFA price is cheaperthan the FSA ratesdid not leadto
customerloyalty to the airline LFA. Satisfactionis centralto improvecustorrerloyalty,eitherthroughimproved
quality ofserviceand reasonable
ratesapply.
HI
H2
H3
H4
H5
H6
H7
H8
5. Conclusion
This study contributesabout differencescausalityvariable quality of service,price, satisfactionand loyalty
irrage betweenthe FSA and LFA airline customers.FSA customerloyalty is not only influencedby satisfaction
and increasethe imageof the airline,but supposedlythereare otherfactorsthat influence.While the satisfaction
LFA influencethe loyalty. Dimensionsof quality of serviceand pricing strategiescan be
of airline passengers
usedby airlinesin settingthe strategicplanningffameworkto maintainand increasethe numberof passengers,
throughthe correspondence
betweenprice and the servicesprovided.
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I I S T E ' s a c k n o w l e d g e m e n ttso t h e s u p p o r t sf r o m c o - h o s t i n gu n i v e r s i t i e sw o r l d w i d e
o
Universityof North Carolinaat Charlotte,United States
.
CaliforniaStateUniversity.United States
o
The City Universityof New York, United States
o
A r i s t o t l eU n i v e r s i t yo'f T h e s s a l o n i kG
i .r e e c e
.
UniversiteitLeiden.Netherlands
A c k n o w l e d g e m e not f E d i t o r s a n d l n t e r n a t i o n a lR e v i e r v e r s
Prof.Dr.Bibhu Kar
I n d i a nS c h o o o
l f B u s i n e s sI,n d i a
Prof.Dr. Y. Zhang
ChinaAcadenryof Sciences(CAS), China
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Universitl'of Malaya, Mala;-sia
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Comparisonof Power InfluenceFactorsShapingLoyalty
IndonesianDomesticAirlines
Reni HeviandriRiandarinir- Ujang Sumanvan2 Lilik Noor Yuliati2 Kirbrandokol
l.GraduateSchoolof Managernent
and Business,Bogor AgricultureLlniversity,Indonesia
2.Depafimentof Farnilyand ConsunrerSciences,Bogor AgricultureUniversity,Indonesia
* E-rnailof the correspondins
author:renisuko@grnail.com
A bstract
perceptionof the quality of airline serviceLFA lower than the FSA for airline passengers
pay the
Passenger
ticket realizedwith relativelycheaperrates.This study airnedto analyzethe differencesin causalitybetween
variablesexpectedto affect the flight of custonrerloy'alty.By using StructuralEquationModeling (SEM) this
paperexarninesthe relationshipcausalconstructsquality ofservice, price,and satisfaction,
to the irnageas rvell
as customerloyalty and LFA. FSA flight. The resultsindicatethat there are differencesin causalitybetween
custonlerloyalty nrodelsof FSA with LFA. The quality of serviceand price togethercreatesatisfactionand
FSA and LFA. Quality of servicehas a
encouragethe creationof a good inragein the minds of passengers
greaterinfluenceon satisfactionthan the price effect and the direct effect on the irrage quality of service is
greaterthan its indirect effect through satisfaction.FSA found that customersatisfactiondoes not encourage
lo1'alty.
loyalty,customersatisfactionLFA oppositeeff-ecton passenger
Keywords: CustomerSatisfaction,
CustomerLoyalty, Low Fair Airline, Full ServiceAirlines
t. Introduction
Flight Low Fare Airlines (LFA) into a new phenomenonas the impact of changesin the businessaviation
industryin severalcountries,includingIndonesia.The 2000swas the era of growth LFA flight in Indonesia.The
nurnberof airline LFA continuesto grow with the effectof an increasein passenger
numberssignificantlyfrom
provides
y,ear.
Intense
not
to
competition
between
airlines
only
an
opportunity
for
the companyto survive
),ear
and thrive and achievetheir businessobjectives,but also resultedin someairlinesare not able to survive or go
bankrupt.
Threeairlinesare consideredquite successfulin increasingthe numberof passengers
today is Garuda
Indonesia,Lion Air and Air Asia. TheseLFA continuesto grow and developthe businessdriversof changein
Garuda
the domesticairline industry,the impact on the changernap market share in getting the passengers.
lndonesiahas become the rrrarketleader rvith a master flight domesticand internationalmarket. Since the
presenceof LFA particularairline Lion Air and Air Asia, the nunrberof passengers
servedby both airlines,are
as the airline Garuda IndonesiaFull ServiceAirline
able to exceedthe growth in the number of passengers
(FSA).
intensecornpetitionwith
Someairline LFA useslow price strategyto attracta numberof passengers,
price differentiationas a parameterto force airlinesto enter into price conrpetitionor price war. The global
financial crisis of 2008 have an impact on the rvorld of transportationcost. irnpactof the crisis has pushed
passenger
flight businessgoalsand touristpassengers
choosethe low cost airlinesas a resultofreduced levelsof
welfare.In the last l0 yearstherehasbeena changein customerbehavioras well as the sensitivityof passenger
airlinesbusinesspurposeswherethe businessgoalsdomestictend to considerin choosingairline prices.Mason
(2002) provedthat 40% of short-haulpassenger
businessgoalsbecorneelasticto price and srvitchingfrorn FSA
conditionshave rnadethe changingdemographics
to airline LFA. Changesin technology'and macro-econornic
(Sumarwan201I ).
and lifestylesof custorners
t-FA passengers
not only considerthe price but alsothe qualityof servicewhen selectinga flight (Jou.
Lanr, Hensher,Chen and Kou 2008). Quality of service is an important factor to develop and maintain
(Park,Robertsonand Wu 2006). Passengers
relationshipswith custonrers
can assessand evaluatethe quality of
the airline througha comparisonbetweenexperiencesand their erpectationson a nurnberof attributesof the
service(Grdnroos2007).
(Saha,
The level of servicequality has a direct irnpacton the satisfactionof air transporlpassengers
Theingi 2009).Quality of servicehas a positiveinfluenceon interestrepeatpurchase,recommend,and choosea
better alternativein which three have a relationshipn'ith custornerloyalty,(Jones,Mothersbaugh,and Beatty
2000). One force airlines to survive in the increasinglyfierce cornpetitionis to create consumer loyalty.
of the sarneairline.
Consumerswho are loyal customerswho rnakerepeatpurchases
t-oyalty to the airline is a very compler phenomenonbecausemany backgroundfactorscustomers
of customerloyalty concludedthat the
becomeloyal to one parlicularairline.Someresearchon the antecedents
cost factors of quality of servicesoffered,custonrersatisfaction,airline irnage,as rvell as confidencein the
servicesreceived,or even a consufflerpreferencetowards a particularairline is affecting the willingnessof
t20
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consumersto re-usethe servicesof a the same airline. More specificallyForgas,Sanchez,
ancl palau (2010)
statedthat thereare differencesin the antecedents
of loyalty arnongcustomersLFA with the FSA.
This study aims to examinethe relationshipsbetrveenthe constructsof quality of service(pre-flight, in-f'light,
post-flight,and perceivedsafetl').price,satisfaction,rirrageand custornerloyaliy of the dornestic
flr'ghtsttratwili
distinguishbetweenthe LFA customersarrdFSA.
2 . L i t e r a t u r eR e v i e w
2 . 1 A i r l i n eI n d u s t r y ' B
s u s i n e s sM o d e l
T h e r ea r e t h r e em o d e l so f a v i a t i o nb u s i n e s isn I n d o n e s i an, a m e l yr n o d e l sF u l l S e r v i c eA i r l i n e ( F S A ) o r t h a t w e
are familiar with the traditionalcost,servicemodelsLor,vFareAirlines (LFA), and the ntixturebetweentlre two
servicemodels(full serviceairlinesand low fare airlines)(Manurung20 l0).
LFA or low-costairline is airlinesgenerallyoffer lower ratesby elinrinatingsonreof tlre servicesthat
are owned by traditionalairlines or FSA. The terrn in the aviation industryis actuallyreferringto the airline
which has a structureof lower operatingcoststhan their cornpetitors,but the terrn is often appliedalso to all
airlines with low ticket prices and lirnited services,regardlessof their operatingrnodels(Miller. Vandome
.McBrewster2009).
FSA conceptknown as the businessrnodelof traditionalairlines(legacycarriers),in this concept,the
enrphasisis completeand high quality servicesalso at a prerniunrprice. Servicesprovided is conrprehensive.
flexible flight frequency,the grant of loungefacilities,provisionof food and drink, looseseatand entertainrnent
facilitiesand so on, to supportquality services,airporl used also is the main airporl. Urrtil tlre year 20 12, in
Indonesia.Garudalndonesia,which onlv usesthe conceptof the FSA, but sincethe year 20 l3 appearedairline
Batik Air is the concepto1'theFSA.
The main differencebetrveenthe LFA and the FSA is the rate charged,fare differenceoccursbecause
ol'the cost of LFA able to cut unnecessary
costs arrdeliminatingservicesthat are not directlv relatedto the
operationand in principle can be acceptedby the customer.The cost differenceby Hanssonet al. (2003)
includessalesand reservation,servicein the plane,pilot salaries.aircraft ownership,maintenanceand ground
handling.
2.2 ConsumerBehavior
Consunrerbehavioris essentiallyto understand"rvhy do consur.ners
do rvlratthey do". Consumerbehavioris all
the activities,actions,as well as the psychologicalprocesses
that drive action at the tirne beforebuy, when to
buy. use,spendingand evaluateproductsand services(Sunrarwan2004). Decision-makingchoosingthe airline
is defined as activities underlakenby passengersfrorr beginning to recognizethe need, seek as rnuch
infonnationabout the existingairline, evaluateoptions,and finally decidedto rnakereservations
and purchase
a i r l i n et i c k e t so f c h o i c e .
2 . 3 Q u a l i t yo f S e r v i c e
Bern), Leonard.
Quality ol'serviceis a total experiencethat can only'be evaluatedb1,thecustomer(Pasuraman,
Zeithamal,Valarie I 988). According to Pasuramanel a/. ( 1985),there are trvo main factorsthat afJ'ectthe quality
ofservice that is ExpectedServiceand PerceivedService.Ifthe servicesreceivedor perceivedas erpected.then
the perceivedservicequality is good and satisfoing,if the servicesreceivedexceedconsunlerexpectations,
the
quality of serviceperceivedby the excellentand qualified.Conversely,if the servicesreceivedis lower than
expected,thenthe perceivedpoor qualityofservice (Ahna 2007).
Quality of service is an inrpofiantdetenninantof the behavior of customersatisfactiorland cost
(Sureshchanndar
et a|.2003; Ling, Lin and Lu 2005; Dagsrer,
Sweeneyand Johnson2007).Studiesshow that the
perceptionof servicequality affectsthe feelingof satisfaction,
which in turn affectsthe behaviorof loyaltv and
(Tanr 2000; Choi and Chu 2001; Petrickand Backnran2002). Passenser
post-purchase
perceptionofthe quality
of airline servicesis one of the nrain drivers of satisfactionand perceivedvalue. Failureto provide a quality
serviceto the customersalso can destroythe inragecan'ierand causea negativeeffect on customerlol,alty
(Archana&Subha2012).
The airlinethat is able to createand rnaintainquality of servicervill gain sonrebenefits,amongothers:
(l) establisha close relationshipbetweenthe airline passengers,
(2) provide a good basis for repurchase.(3)
(5)
passengers,
(4)
rvord-of-rnouth,
create
createa good reputationin the minds of
encouragethe loy,altyof
passengers,
and in the end (6) encouragingincreaseairline profits (Park et al. 2005; Rizan20 I 0). Good quality
of'serviceis a conrpetitivestrateg),forthe airlines,in additionto irnprovingsatisfactionis also able to increase
the airline'simagein the nrindsof customers,
the qualityof customerserviceis alsopushingfor a cornmitnrentto
the airline.which leadsto an increasein marketshare.
In general,the evaluationof the service processcan be divided into three distinct phases:pre(Kasperet ul. 2006), so that u,henadaptedinto the aviation
consumption,consumptionand post-consurnption
t21
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industry,the third stageis the pre-flight services(pre-t'light,in flight, in-flight) and post-tlightactivities(postflight), each stage,each containingseveralcustomer-oriented
activitiesand contributeto the total custolner
experience(Leong 2008). Identificationof the factorsof serviceq,ralityin the airline industryis done partly by
Ostrorvski1993;Sultanand Simpson2000; jaur et al 2002. Chang2002.Mazzeo2003; Park et aI.2004; Chen
a n dC h a n g2 0 0 5 ;L i o u a n d T z e n g 2 0 0 7 ) .
Dirnensionsof securityand safetyis the most inrportantdinrensionis usedto nteasurethe quality of
servicecost (Clemeset a|.2008), becausewhen choosingan airline, passengeraircraft safetyregardedas the
rnost irnportantcriteria (Gilberl and Wong 200i; Atalik and Ozel 2007). Safety and comfort are the most
instrumentalfactor in the selectionof Indonesianairlines (Marsetyawan2006). Indonesiahas a poor record
relatedto aviationsafet1,,
and accidentairline Air Asia QZ 8501 on Sunday,December28th, 20 l4 to add a bad
r e c o r dl b r f l i e h t l n d o n e s i a .
2.4 Price
Understanding
the price of customercognitiveconceptis somethingthat must be sacrificedto obtain several
typesof productsand services,in which the lower the perceivedprice,thenthe lower the perceivedsacrificeand
more satisfied custornersperceived price of the whole transactionwas created(Zeithaml 1988). Provide
appropriateprice to the customeris anotherway to achieveloyalty (Clemeset u\.2008); Chen et ul.20l l; Chen
and Hu 20 12). There is a relationshipbetweenthe reasonableness
of the price with satisfactionand loyalty in
servicecornpanies(Consuegraet al. 2007).Pricefairnessperceptionsare positivelyassociatedeitherdirectly or
indirectlythroughsatisfactionon customerloyalty (Bei and Chiao2001).
The reasonableness
ofthe price can be rneasured
throughatlributes(Consuegraet a\.2007):
l. Customersfeel payinga reasonable
price on a purchasetransactionfaithful.
2. Referenceprice level, where custornersfeel nornral if a product or servicesof a different kind of
cornpanies
are setat differentprices.
3. Policiesprice is detenninedby the companyare reasonable
and acceptable
to the customer.
4. Price set is an ethical,wheretlre customeris alrvaysnotified of price changesthat will be madeby the
companybeforethe new pricesare set.
2.5 CustomerSatisfaction
The conrpanyrecognizesthat customersatisf'action
is the nrainthing that shouldbe achievedby the conrpanyto
gain the loyalty of its customers.Satisfactionis a nrediatingvariablebetweenservicequality and custonrer
foyaltyso many satisfiedcustomersthat will providea high loyaltyto the cornpany(Akbar et al. 2010).
Studythe relationshipbetweensatisfactionand quality of serviceas well as its impact on loyalty has
been carriedout, among others,Lee, Graefe,& Burns (200a); Tian - Cole, Crompton,& Wilson (2002). The
resultsZins (2001) on the future of passenger
loyalty antecedents
in the commercialaviationindustryfound that
custolnersatisfactionrvith the brandimageand quality of serviceis an irnportantcolnponentto explainloyalty to
airlinepassengers.
The comparativestudy conductedby Bamford and Xystouri (2005) found that tlre failure of services
such as flight cancellation,diversion,delays,strikesand negativeattitudesof employeesis more comrnon in
LFA flight, so more prevalentcornplaintsin airlineserviceLFA comparedto FSA.
2 . 6 A i r l i n e sh n a g e
Corporateimage(the imageof the conrpany)can be consideredas a functionof the accunrulated
experienceof
the purchaseor consumptionand has trvo main components;functionaland emotional.Functionalcomponents
associatedwith real attributesthat can be easily measured;while the emotionalcomponentis relatedto the
psychologicaldimensionis rnanifested
by feelingsand attitudestowardan organization.This feelingcomesfrom
individualexperiences
with the organizationand processirrg
of infonnationaboutthe attributes,which constitute
a functionalindicatorof cornpanyimage(Tang2007). Imagepositivea positiveimpacton the conrpanyso as to
increasethe nutrrberof sales,othenvisenegativeimagecausedlossesto the company.Satisfactionfollolved by
the image of the company is irnportantin a construct(Cohen et a|.2006). hnage companiesaffectedby the
qualityof serviceand customersatisfaction,
which in turn affectcustomerloyalty(Tang2007; Kandampully,l lu
2007). Customerloyalty arisesthrough good image of the airline that is createdthroughthe irnprovementof
s e r v i c eq u a l i t ya n dc u s t o r n esra l i s l a c t i o n .
?.7 CustomerLoy,alty
Loyal customersare very attractiveto businesses
becausethey are lesssensitiveto price,tlrerefore,maintainand
increasethe number of loyal passengers
is a must for the airline to survive in the current situationof tight
cornpetition(Gomez, Arranz,Cillan 2006).
Factorsforrningcustomerloyalty is the quality of service,trust,
and custolnersatisfaction(Akbar and
I-uropcan.loumal of Businessand Managenrent
\\\\\\.ltsle.org
niri
ISSN 2222-1905 (Paper) ISSN 2222-2839(Online)
Vol.7.Noll.20l5
Parvez2009). The quality of servicesoffered,customersatisfactiontor servrcesreceived,or even a consumer
preferencetowardsa particularairlineis affectingthe willingnessof consurners
to re-usethe servicesof the same
airline(Hellier,Geursen,Carr, Rickard2002; Li, Lee 200 l).
Basedon the literaturedescribedabt, e, the conceptualmodel proposedin this study is :(Figurel)
\'J:L,^
(
\
{
---"--.--.\
porr_
\
flr*hl
J
\.-_:___/
surury
f
Figure l. Customerloyalty flights rnodel
3. Methodology,Variable and Data
3.1 Location and Time Researclt
The researchwas conductedfrom Februaryto March 20 14, with an interviewof the dornesticflight passengers
Airport,Jakarta(lndonesia).
departingthroughterrninals1,2 and3 Soekarno-Hatta
3.2 Method Of Collecting Data
This study was designedas a survey with quantitativedescriptiveapproachto obtain a picture, information,
explanationsand current conditionsrelated to customerloyalty. Data collectedby using questionnairesand
The samplesin this study using non-probabilitysampling
interviews(face to face interview)to the respondent.
design,the samplingtechniquethat doesnot give the samechanceor opportunityfor eachelementor memberof
the populationto be selectedinto the sarnple(Sekaran2003). Types of non-probabilitysamplingare purposive
sampling,the method of gatheringinfonnation from nrembersof the populationwho meet certain defined
criteria.
of the populationand the
The criteria used by the consideration(judgment)on the characteristics
aircraftover
pulposeof this study,in which the criteriausedin selectingthe samplein this studywas a passenger
| 8 yearsold, had beenusingtwo differentdornesticairlines.
Hair et al. (1998) recommendan appropriatesarnplesize rangedfrom 100 to 200, or a total of five
interviewedin this study were 352 respondents.
samplesfor eachparameterobservation.Respondents
3.3 Variable Description and Measurentenl
imagesand customerloyalty.
Latentvariablesusedin this study are servicequality,price,custonrersatisfaction,
lndicatorsfor eachlatentvariableare describedin Table |.
111
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Table l. Latentvariablesand their indicators
Construct
Dimension
I. ServiceQuality
Pre-flighl
l.
2"
3.
4.
5.
6.
7.
8.
9.
10.
I l.
Websiteservices
Frequcncyofflights
Convenienccof flight schcdule
Convenicnceofreservation and ticketing
Check-in service(waiting time, ef'ficieniy. etc)
Neatappearance
ofcmplolee
Customerscrviccenthusiasm
Flight on time
Inlbrmationflight dclal's
Compensationfor l'light delays
Tlre amount imposedfor overweight baggage
In-flight
l.
2.
3.
4.
5.
6.
7.
8.
9.
Seatcomfbrl
Seatspaceand legroorn
Clcanlinesson board
Cleirnliness
of restroom
Food and beverageserviccon board
Irntertainmentfacilities on board
Flight attendantsattitudes
Flight attendantsappearancc
Courtesyof employees
Post-flight
L
2.
Prorhptnessand accuracy ofbaggage dclivcry
Handlingol lossluggage
Indicator
i ff#,lill
l,ffi;j,3;'ill';!x'*'*.
Safety
2.
Price
l.
2.
3.
4.
5.
6.
Aircraft securitycheck belbre departure
Aircraft t1'pe
Physicalappearanceofaircraft
Flight safctyrecords
Aftention and aleftnessof the crew cabin to the safetl,and
comfbrt of passcngersduring the llight
Senseofsafety during the flight
l.
Fairnessthe oriceofairline rickets
3l;lfi"$'j,.*,'.ffi
,..,;..;";"
3. CustomcrSatisfaction
4. Image
l. How satisficdareyou r.viththescrviceoverall
|,
The {iompany'scomrnitmcntto always provide the
services
lharimpressed
themindsof consumeis
2. Thc company'scommitment
to the bestcompared
to other
airlines
3. Thcairlinccflbrtro maintain
thcrepuration/imagc
Measurementindicatorsusing a Likert scalewith categoryscale l-5: I - very dissatisfied,2: not satisfied,3 moderate,4 : satisfiedand 5 - very satisfied.
3.1 ProcessingMethodsand Datq Anal1,5ig
This studydataprocessingusingdescriptiveanalysisto get an overviewofthe characteristics
ofthe respondents,
and inferentialanalysisusing the StructuralEquationModel (SEM) to confinn that the model has been built.
Explainingthe contributionof each indicatorvariablesin the model are basedon measurements
Confirmatory
FactorAnalysis (CFA) and to test the causalitybetrveenthe constructsin the structuralmodel is basedon an
understanding
ofthe theoryas the studyofliterature.
Testson the suitabilityof the model usingcriteriaGoodnessOf Fit Index (GOFI), CFA is usedto test
the constructvalidity and reliabilityof the measurement
model. Hair et al. (2006) statedthat the factor loading
value of an indicatorin nteasuringthe latentvariablesas valid if the value is greaterthan 0.5 and significant.A
constructis said to reliably if the value of ConstructReliability (CR) is not less than 0.7, and the value of
VarianceExtracted(VE) is not lessthan 0.5. The influencetestsof the relationshipbetweenthe constructsusing
t-testto comparethe t-testwith t+able and we usedSPSS | 7 for descriptiveanalysisand Lisrel version8.3 for
124
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SE,Manalysis.
3.5 H1;pothesis
'lowing
hypothesis:
Basedon the abovetheorystudyproposedthe f
H I : ServiceQuality influencethe satisfaction
H2: Loyalty influencethe Quality of Service
H3: Loyalty inl'luencethe ImageQuality Service
H4: l'he price influencethe satisfaction
H5: Priceinfluencethe Loyalty
H6: Satisfactioninfluencethe Irnage
H7: Satisfactioninfluencethe lo1'alty
H8: lmage influencethe Loyalty
4 . R e s u l t sa n d D i s c u s s i o n
1. I Descriptit,eAnah'sis
of the
tool in a population,the characteristics
is irnportantstatisticalmeasurernent
of respondents
Characteristics
as
well
as
expenditure,
rnonthly
nteasured
through
gender,
age,
incorne
in this study is describedon
respondents
into
divided
two
the
respondents
loyalty.
352
Of
with
customer
associated
educationand ernployrnentlevels
of the 352
groups. of which 222 respondentsas well have used the FSA also use the LFA. Characteristics
respondentswho becomesthe object of research,most of the respondelltswere male as much as 235 (66.8%),
have a greater
with the highestage range in tlre age range20-40 years,an age group in which the respondents
degreeof mobility than the age group Other respondentsso relatively frequenttravel both for office / work or for
was 38.89%privateemployeeswith educationalbackgroundBachelor
other purposes.Most of the respondents
degree(Table2).
Table2 Profileof respondents
ParticiPants
Description
Gender
Age
Education
0ccupation
Spending
Male
Female
2026 3l 36 *
-1146 5l 56 -
25 ycars
30 years
35 y'ears
40 years
45 years
50 1'ears
55 years
60 1'ears
Elementary
JuniorSchool
I ligh school
AssociateDegree
BactrelorI)egree
MasterDegrcc
PhDDegree
Frequency
"h
235
66.8
lll
JJ.z
85
77
57
a,t I
L+- |
25
t7
21.9
16.2
10.5
8.8
6.5
7.1
'1.8
+J
0.9
I.4
2.6.4
t2.2
)t
il
/.J
163
43
n
WhiteCollarEmployees
Civil Scrvanls
SelfEmployed
Student
[)roffesional
Uncmplolcd
t-t /
< IDR 2 million
> I D R2 m i l l - I D R4 m i l l
> l D R4 m i l l . l D R 6 m i l l
> l l ) R 6 n r i l- ll D R S m i l l
> IDR 8 mill
6l
| -)-)
70
{t
JJ
na
t8
4t,
47
40.J
12.2
0.6
38 . 9
19.9
t4.8
9.4
12.0
5.1
17.3
37.8
20.2
I 1.4
13.4
Loyalty developedfbllorvingthree stages,namely cognitive.affective,and conative.Usually become
loyal custornersfirst on cognitive aspects,then the affectiveaspects,and finally the conativeaspect.Table 3
who have usedthe FSA hasa level of asreementthat is different.some 77
explainsthat of the 222 respondents
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respondents(34.68%) is a customerwho has reachedthe level of Influencer,lo),alty Client (20.72oh),and
Pafiners(18.92%\as Table 3.
Table 3 Levelsof agreementIrSA custrtxer loyaltv indicator
Statement
Total
All airlinesarethesame(Shopper)
I will usethisairlineon thenextflight(Client)
I will alwaysusethis airlineasa partnerin my journey (Partner)
Because
manybenefits,I wouldrecommend
this airlinesto others(tnfluencer)
Total
Y"
57
46
42
77
25.68
20.72
18.92
34.68
222
100.00
The resultsshowedthat most.of the FSA customersalreadyat the level beganto be loyal clientsand
partnerto becomean influencer;only 25.680/o
saidthat all the airlinesare same(shopper).
Of the 352 respondentswho provide an assessment
of the level of agreementthat the LFA has a
(9:09%) is a custornerwho has reachedthe level of lnfluencer,loyalty Client
different,a total of 32 respondents
(1932%), and Partners(14.77%),but the very high numberof customerswho assumethat the LFA airlinessarre
(56.82%),as Table4.
as otherairlines(Shopper)of 200 respondents
Table4 Levelsof agreement[-FA customerloyalty indicator
Total
Statement
All airlinesare the same(Shopper)
I w i l l u s et h i s a i r l i n eo n t h e n e i t n i g f r tl C t i e n r ;
I rvill alwaysusethis airlineas u pJm"i in my journey (Partner)
Becausemany benefits.I would recommendthis airlines to others(lnfluencer)
200
68
52
Total
352
JL
'
s6.82
19.32
14.77
9.09
100.00
The resultsof this study showedthat the rnajorityof airline customersLIrA is a custon.ler
u'ho assurne
tlratall the airlinesare sanre.sincemany LFA airlinesrelativelyoffersthe sameproductso that the airline is able
to provide different services,routes and flight times rnore with price cheaperwould be preferredby LFA
customers.
1.2 AnulysisMeasut'ententModel
Inl'onnationon the level of agreementof each indicator can be read separately,but the explanationlatent
variablescannotbe done individuallybecauseof the aspectsof the relationship(correlation)betweenindicators
of each other. Sequentialeffectsoccur in a set of indicatorsin explainingthe latentvariables.Therefore,it is
necessary
that the measurement
model basedon the Cont'irmatoryFactorAnalysis(CFA) (Joreskogand Sorbom
1996)to explain tlre contributionof eaclrindicator.SEM providesfacilities UnrveightLeast Square(UL) to
determinethe performanceor contributionof each indicator in explaining her latent variables.Facilities
Unweight Least Square(UL) in the SEM would suspectthe magnitudeof the coefficientvalue measurement
rnodel.ConstructReliability(CR) is an indicatorof the ability to explainthe variable(frornthe aspectof quality)
and VarianceExtracted(VE) show the weight indicatoris able to explainthe latentvariables(quantityaspect).
resultsshow that thereare severalindicatorsto obtainload factor 2.51)
Testing found that the Quality of Service (Service Quality) positive and significant effect on
satisfaction(CustomerSatisfaction)and the Image of the airline (Airline Image) but no significanteffect on
customerloyalty (custornerloyalty). Image Quality of Servicedirect influence(tr - 0:50, t:8.4 1), greaterthatr
its indirecteffectthroughCustornerSatisfaction(0:08).
P r i c e( f a i m e s sp r i c e )a n d a s i g n i f i c a npt o s i t i v ee f f e c to n c u s t o m e sr a t i s f a c t i o(n) . : 0 : 1 9 , t : 3 . 4 5 ) b u t
n o s i g n i f i c a net f f e c to n C u s t o r n eLr o y a l t y( ) . : 0 . 0 0 1 , t : 0 : 0 1 ) , w h e n c o m p a r e dt o t h e p r i c e ,t h e nt h e i n f l u e n c e
of the SatisfactionQuality of Service(),: 0:53) is greaterthan the price effect (),: 0.19) towardssatisfaction.
Customersatisfactionpositiveand significanteffecton Airline Image(p : 0:16,t : 2.24) and CustornerLoyalty
( B : 0 : 2 5 ,t : 2 . 2 4 ) , s i m i l a r l yA i r l i n e I m a g es i g n i f i c a net f f e c to n l o y a l t y( p : 0 : 2 3 ,t : 3 . 0 9 ) .
Resultsof researchon customer loyalty LFA rnodelsshow different results,which affect service
quality indirectlyloyalty throughsatisfaction.PerceivedLFA price is cheaperthan the FSA ratesdid not leadto
customerloyalty to the airline LFA. Satisfactionis centralto improvecustorrerloyalty,eitherthroughimproved
quality ofserviceand reasonable
ratesapply.
HI
H2
H3
H4
H5
H6
H7
H8
5. Conclusion
This study contributesabout differencescausalityvariable quality of service,price, satisfactionand loyalty
irrage betweenthe FSA and LFA airline customers.FSA customerloyalty is not only influencedby satisfaction
and increasethe imageof the airline,but supposedlythereare otherfactorsthat influence.While the satisfaction
LFA influencethe loyalty. Dimensionsof quality of serviceand pricing strategiescan be
of airline passengers
usedby airlinesin settingthe strategicplanningffameworkto maintainand increasethe numberof passengers,
throughthe correspondence
betweenprice and the servicesprovided.
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