Abstract
Airline industries are currently faced with challenges to satisfy consumers in order to improve organizational performance. The purpose of this study is to analyze service quality, corporate image, price fairness, and airline safety as a stimulus of customer satisfaction and its impact on brand loyalty. Samples data of 350 Low Cost Carrier/LCC passengers in Indonesia were collected and purposive sampling technique was used to analyze the developed hypothesis. Further data is processed with Structural Equation Modeling technique. The results of the study found that the stimulus of customer satisfaction of LCC is service quality, corporate image, price fairness, and airline safety. Furthermore, customer satisfaction will provide consequences for airline brand loyalty. The study also found that corporate image is the strongest factor affecting customer satisfaction. For further research, it is suggested to add customer value as a stimulus of customer satisfaction.
Highlights
Each country requires a means of transportation to facilitate the movement of people and goods into and out of the country that will provide added value in the form of time efficiency and speed better than other transportation modes
Based on the theory and previous research, the hypothesis to be tested in this study is as follows: H1: There is a positive effect of service quality toward customer satisfaction
Hypothesis to be tested further in this research is: H2: There is a positive effect of corporate image toward customer satisfaction
Summary
Each country requires a means of transportation to facilitate the movement of people and goods into and out of the country that will provide added value in the form of time efficiency and speed better than other transportation modes. Air transport, in particular contributes to the government in the fulfillment of employment for the community, which is a direct result (the creation of industrial employment from the air transport itself) or indirectly (multiplier effect of the increase of incoming tourists opening employment for aircraft maintenance, travel and hospitality) (https://www.kompasiana.com). From 2010 to 2015, the airline industry could generate a net profit of USD $59.2 billions (IATA, 2016). McKinsey consultancy review in 2014 said that globally (both in Europe, Latin America and Asia), the development of the aviation world have grown rapidly, but the market is starting to specialize, such as the Low Cost Carrier / LCC specialization. LCC airlines are increasingly becoming a major lead in the global comfort of flight (such as additional food reservations, or ticket booking altogether with hotel and tour) (http: //industri.bisnis.com). In Indonesia, LCC is growing rapidly, where since 2012 until 2016 there was a continuous growth in the number of flights and passengers using the LCC both domestic and foreign
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