The Effect of Paid Baggage to Purchase Intention through Price Fairness in LCC's Airlines User (Case Study on Lion Air Airline)

A P Lesmana, N R Putri, Edhie Budi Setiawan, Yoanita Octora

Abstract


LCC or low-cost-carrier airlines are flights that offer low fares to its customers by reducing the services or facilities obtained. In response to profit reductions, LCC airlines increase service costs by applying paid baggage. The application of the paid baggage causes the price to increase very high so that it is considered unreasonable and makes the passengers reconsider the interest of buying an LCC airline ticket. The purpose of this study is to know the interest in buying consumers of Lion Air after the paid baggage is set, knowing the influence of paid baggage on the price fairness of Lion Air Products, and knowing the price fairness influence of Lion Air product of consumer buying interest. The research methods performed are quantitative. Data collection techniques by passing a questionnaire with samples of 100 respondents who have used the services of Lion Air airline. The results of this study were analyzed using path analysis techniques. The results showed that the paid baggage variables and price fairness variables influenced significantly on the buying interest variables of the consumers of the Lion Air airline users.


Full Text:

PDF

References


Yunani OA. PERKEMBANGAN BISNIS LOGISTIK INDONESIA. 2008;

Munandar Y. Potret Daya Saing Logistik Indonesia Oleh: 2015;16–8.

Bank W. Logistics Performance Index [Internet]. 2017. Available from: https://lpi.worldbank.org/

Izberk-Bilgin E, Nakata CC. A new look at faith-based marketing: The global halal market. Bus Horiz. 2016;59(3):285–92.

Pradipta AR, Jeremy J, Didiet R, Hidayat R. Solutions for Gradual Development of Halal Logistics in Indonesia. :187–99.

Kementerian Agama RI. PP RI NO.31 TH. 2019. 2019;1–32.

Mawlani Sher Ali. The Holy Quran, Arabic text and English translation [Internet]. Holy Quran. 2004. p. xxi, 912 p. Available from: http://www.tangali.net/Kanzul Iman Quran EnglishTranslation.pdf

Mohammadian F, Hajipour B. Halal Cosmetics Supply Chain - A Conceptual Model. Int J. 2015;5(1):33–43.

Zulfakar MH, Anuar MM, Talib MSA. Conceptual Framework on Halal Food Supply Chain Integrity Enhancement. Procedia - Soc Behav Sci. 2014;121:58–67.

Raden Didiet Rachmat Hidayat et al. Logistik Halal (Kompilasi Berbagai Pemikiran). 1st Editio. Sandriana M, Cecep P, Olfebri, Rohana S, editors. Bogor: In Media; 2019.

Jusmaliani J, Nasution H. Religiosity Aspect in Consumer Behaviour: Determinants of Halal Meat Consumption. ASEAN Mark J. 2016;1(1):1–12.

Wilson JAJ, Liu J. The challenges of Islamic branding: Navigating emotions and halal. J Islam Mark. 2011;2(1):28–42.

Mahdi B, Maryam A. The Halal brand personality and its effect on purchase intention Mahdi Borzooei and Maryam Asgari Business Management Faculty,. Interdiscip J Contemp Research Bus. 2013;(May 2014):481–91.

Tieman M. The application of Halal in supply chain management: In-depth interviews. J Islam Mark. 2011;2(2):186–95.

Ngah AH, Zainuddin Y, Thurasamy R. Adoption of Halal Supply Chain among Malaysian Halal Manufacturers: An Exploratory Study. Procedia - Soc Behav Sci. 2014;129:388–95.

Fazira I, Harras D, Aviastuti I, Didiet R, Hidayat R, Amonalisa S. Benchmarking Of Malaysia Certified Halal Warehouse to Implement Certified Halal Warehouse in Indonesia. :139–49.

Hanzae, K.H. and Ramezani MR. Intention to Halal products in the world markets. Interdiscip J Res Bus. 2011;1(5):1–7.

Shahid S, Ahmed F, Hasan U. A qualitative investigation into the consumption of halal cosmetic products: the evidence from India. J Islam Mark. 2018;9(3):484–503.

Ambali AR, Bakar AN. People’s Awareness of Halal Foods and Products: Potential Issues for Policy-makers. Procedia - Soc Behav Sci. 2014;121(September 2012):3–25.

Shaari, J.A.N. and Mohd Arifin N. Dimension_of_Halal_Purchase.pdf. 2009.

Mohd Fuad Mohd Salleh RH. Halal Assurance System Requirements and Documentation in Cosmetics Industry Halal Assurance System Requirements and Documentation in. Proceeding Int Conf Halal Issues Policies 2013. 2013;(November).

Sutton J, Austin Z. Qualitative research: data collection,analysis,and management. Can J Hosp Pharm. 2015;68(3):226–31.




DOI: https://doi.org/10.25292/atlr.v2i0.240

Refbacks

  • There are currently no refbacks.


Copyright (c) 2019 Advances in Transportation and Logistics Research

Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.

Advances in Transportation and Logistics Research

ISSN: 2622-5778 (online)
Published by: Institut Transportasi dan Logistik Trisakti, Jakarta - Indonesia

ATLR by http://proceedings.itltrisakti.ac.id/index.php/ATLR is licensed under a Creative Commons Attribution 4.0 International License.