Change the Paradigm Of Customer Perception On Charging Checked Baggage Fees To Purchase Decision

Abstract

Charging checked baggage fees for low-cost carrier is the current issue in the Indoneisan Airline industry. Differentiate baggage fees is one of the airline strategies to increase revenue. The price of additional checked baggage fees that not published well create some complaints from customers. On the other hand the imposition of baggage fees benefited for travelers who don't bring baggage allowance. From this case, customer of low-cost carrier has different perception about the imposition of baggage fees. This study examines the effect of customer perception on imposition of checked baggage toward purchasing decisions. This paper using quantitative data collected by questionnaires. The measurement of this study using likert scale and was analyzed using regression analysis. The data collected by 104 respondents. The respondents of this study are low-cost carrier users in Indonesia. The result of this paper will show that customer's perception of checked baggage additional fees affecting significantly to the purchase decision. the result of this study obtained that the customer perception on the imposition of checked baggage fees still not good and for variable purchase decision shows that customers are hesitant to buy an airline ticket which not include baggage allowance.