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

Related Articles

The Effects of Culture and Human Resources Management Policies on Supply Chain Management Strategy

The prime objective of the study is to investigate the impact of culture and human resource practices on the supply chain management strategies in the Indonesian manufacturing sector. The investigation of supply chain ma...

Healthcare Facilities Website and Their Impact on Customer Satisfaction from the Perspective of Customer Relationship Management (CRM)

Recently, customer relationship management (CRM) applications have also shown importance in areas where demand exceeds supply. The core of CRM is based on marketing and communication with the customer is an important par...

APPLICATION OF BAYESS PRINCIPLE OPTIMUM - OPTIMIZATION MODEL FOR MANAGERIAL DECISION AND CONTINUAL IMPROVEMENT

This contribution presents utilization of quantitative method of operational analysis - Bayes principle optimum in the area of utilizing alternative power sources. By this quantitative model we can find out solution of e...

THE INNOVATIVE METHODS OF FUTURE PROFESSIONAL STAFF EDUCATION

The article presents the results of the carried out analysis concerning the level determination of the use of innovative methods of teaching specialized subjects in preparation for the profession of logistics, and to ide...

SELECTED APPROACHES TO EVALUATION OF THE BEST NON-LIFE INSURANCE COMPANY IN THE POLISH INSURANCE MARKET

This article deals with the identification of the best non-life Polish insurance company according to selected approaches. Four indicators were selected for evaluation such as growth of brutto written premium, asset leve...

Download PDF file
  • EP ID EP247948
  • DOI 10.17512/pjms.2017.16.1.17
  • Views 126
  • 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