The Effect of Price Fairness and Service Convenience on Customer Satisfaction and Its Impact on Customer Loyalty (Case Study: Indonesia AirAsia)

T. Mayumartiana, A. Aulia, Yoanita Octora, Edhie Budi Setiawan

Abstract


The development of aviation industry in Indonesia nowadays is experiencing increasing demand. However, in 2019 there were price fluctuations in the airline industry which resulted in ticket price increase at lower limit rates. The expensive prices of airline tickets have resulted in lower demand for airline service industry in Indonesia. The purpose of this study is to determine the effect of significant price fairness and service convenience on customer satisfaction and its impact on customer loyalty in Indonesia AirAsia. This study is quantitative study. The method used in this study is path analysis. The results of this research have showed that price fairness and service convenience have an effect on customer satisfaction. Price fairness and service convenience also have an effect on customer loyalty. It indicates that increasing customer satisfaction can be done through the ease of payment so that it can increase customer loyalty. Therefore, customer satisfaction can mediate interventions in relation to customer loyalty.

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DOI: https://doi.org/10.25292/atlr.v2i0.229

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