HOW TO ESTABLISH CUSTOMER TRUST AND RETENTION IN A HIGHLY COMPETITIVE AIRLINE BUSINESS

Journal Title: Polish Journal of Management Studies - Year 2017, Vol 16, Issue 1

Abstract

The Indonesian social class population is increasing in number and the demand for rapid transportation heightens the competition in the airline industry in Indonesia. Many business players in this industry are changing their strategies and start to apply new strategies from intensive marketing, advertising, and promotion up to Low Cost Carriers strategy to get more passengers. Highly competitive market triggers the airline companies to attract and retain customers. Increasingly saturated market drives significant gains; thus, customer retention is essential for airlines industry. This study aims to analyze the influence of Service Quality, Brand Image, Customer Satisfaction, and Customer Trust on Customer Retention. A number of hypotheses are examined using a sample of Customers of Low Cost Carriers in Indonesia (Lion Air, Citilink, Sriwijaya Airline, Kalstar and Air Asia). The data is analyzed using LISREL, collected from 417 passengers who travel from Soekarno-Hatta Airport, Jakarta. We find that Service Quality, Brand Image, Customer Trust, and Customer Satisfaction have positive effect on Customer Retention<br/><br/>

Authors and Affiliations

Juliater Simarmata, Yulianti Keke, . Veronica, Siska Amonalisa Silalahi, Eva Benková

Keywords

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  • EP ID EP247948
  • DOI 10.17512/pjms.2017.16.1.17
  • Views 114
  • Downloads 0

How To Cite

Juliater Simarmata, Yulianti Keke, . Veronica, Siska Amonalisa Silalahi, Eva Benková (2017). HOW TO ESTABLISH CUSTOMER TRUST AND RETENTION IN A HIGHLY COMPETITIVE AIRLINE BUSINESS. Polish Journal of Management Studies, 16(1), 202-214. https://europub.co.uk./articles/-A-247948