Abstract
<p>study investigates how brand affection, loyalty programs, and brand trust determine the loyalty in airways industry. We examined the influence of brand trust and brand affection on loyalty in airlines services. The airways companies applied loyalty programs as a trend. The purpose of the loyalty programs is to encourage the loyalty of the customers. The purpose of this study is to analyze the influence of brand affection and loyalty programs on brand trust and loyalty among GarudaMiles members. Primary data were collected through a survey. Data collected by online quistionnaire through social media and resulting 171 processable questionnaire. Data were analysed using confirmatory factor analysis and structural equation modelling. Confirmatory factor analysis within structural equation modeling were carried out to assess adequacy of the measurements and validity of the model. We found that brand affection is not significantly influence customer loyalty; brand affection significantly influence brand trust; and brand trust significantly influence customer loyalty. This result indicate that brand affection has an indirrect effect on loyalty, it’s mediated by brand trust. Loyalty program is not significantly effect brand trust, it has direct effect on loyalty. It’s become clear that only brand trust mediates the relationship of brand affection and loyalty. The customers of the airways companies tend to be loyal because of the loyalty programs applied by the airways companies. These finding add performance effectiveness and long-term relationships with customers in airlines industry to the factors needed to respond to the highly competitive situation at present, which will be even more important with the ASEAN Economic Community in 2015.</p><p><br />Keywords: Brand Affection, Brand Trust, loyalty, Loyalty Program</p>
Highlights
In an growing competition environment, the brand becomes the most valuable asset
The results in this study shows that there is no association between the brand affection and loyalty in the cotext of GarudaMiles Members, it means that if the members of GarudaMiles have positive or negative affectiion, it will not effect their loyalty towards service provider
The results showed that the loyalty program (GarudaMiles) increase the loyalty of GarudaMiles members
Summary
In an growing competition environment, the brand becomes the most valuable asset. It is strategic and criticall for the company (Kabadayi and Alan, 2012). International Air Transport Association (IATA) predict the global airline business net profit reached US $ 25 billion in 2015. It grows up 25.6 percent compared with last year at $ 19.9 billion. IATA predicts that the aviation industry in Indonesia will reach the 9th largest market in the world for domestic flights and for international flights Indonesia was ranked on sixth, the fastest growth of the international aviation market in the world's (http://industri.kontan.co.id).
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