Abstract
The competition to get the highest Market Share among Low-Cost Carrier airlines in Indonesia is getting fierce. Airlines are competing to offer prices that are appropriate for passengers to perceive them in this era of tariff wars. The degree of satisfaction that is felt is needed to get loyal customers. The purpose of this research is to analyze the impact of customer experience and perceived price on customer loyalty through customer satisfaction. The method of analysis in this study uses the SEM-PLS (Structural Equation Model - Partial Least Square) method with 250 respondents taken by purposive sampling. The result of this research is there is effect positive and significant between customer experience on customer satisfaction and customer loyalty, also there is effect of perceived price on customer satisfaction and customer loyalty. Airlines must pay attention to the services provided to create a memorable experience for passengers and adjust prices to be accepted by passengers.
Highlights
Indonesia is an archipelago country that has 17,504 islands from Sabang to Merauke which lies 3,977 miles long
The long and wide distances between Indonesian regions have driven the development of the air transportation industry
As seen in Tableseen[6], the R-Square value for the Customer Satisfaction (KP) variable is 0.604 and for the Customer Loyalty (LP) variable is 0.567. These results indicate that 60.4% of the Customer Satisfaction (KP) variable is influenced by the Customer Experience (CE) and Perceived Price (PP) variables, while the Customer Loyalty variable shows that 56.7% is influenced by the Customer Experience (CE) variable
Summary
Indonesia is an archipelago country that has 17,504 islands from Sabang to Merauke which lies 3,977 miles long. The long and wide distances between Indonesian regions have driven the development of the air transportation industry. The high public interest in the presence of air transportation with relatively cheap price offers has resulted in higher competition for Low-Cost Carrier (LCC) airlines. The growth of Low-Cost Carrier (LCC) airlines aims to create an affordable market for the community and fill routes where the market is not yet potential. In the first quarter of 2019, there was a negative passenger growth as shown in table 1.
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