The Effect of Price And Perceived Quality on Ticket Purchase Intention at Lion Air Airline

Luki Chrisnawan, M Onibala, Yoanita Octora, Edhie Budi Setiawan, Didiet Anthony

Abstract


In present days, the airline industry is ever-thriving, notably in Indonesia. The Indonesian Minister of Transportation has issued Ministerial Decree No. 72 of 2019 to set the upper limit and lower limit rates of Indonesian airline ticket prices. The aim of this research was to figure out the significant effects of price on perceived quality, price on purchase intention, and perceived quality on purchase intention in the case of Lion Air. This research used quantitative research, which were then analyzed by the SEM PLS technique with the software SmartPLS. The results show that in Lion Air 1) price had a positive effect on purchase intention, 2) price had a positive effect on perceived quality, 3) perceived quality had a positive effect on purchase intention, and 4) perceived quality was able to mediate the relationship between price and purchase intention.


Keywords


price, perceived quality, purchase intention

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DOI: https://doi.org/10.25292/atlr.v2i0.161

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