Abstract

This paper describes the competition on aviation industry in Indonesia. A phenomenon occuring in this industry that causes the decline in Purcashing Power will bring negative impact on domestic aviation industry. On the other hand the number of airplane passengers increases significantly, but this is not followed by increments of airline industry. Research was focused on two domestic airlines that have relatively large market share in this industry, Garuda Indonesia and Lion Air. Garuda Indonesia carries punctuality and convenience strategies both in aircraft and ground with target segmentation of passengers who are not sensitive to prices. Lion Air has a strategy of low cost carrier (LCC) with segmentation of passengers who have price sensitivity. This study analyzes if the brand image affects brand attitude, and if the brand attitude will affect buying interest. The result of this study describes that the brand image can enhance the perceived quality and advertising quality. Furthermore, the brand image will influence better attitudes toward the brand and buying interest.

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