THE EFFECT OF PRICE AND PAID BAGGAGE TOWARDS CUSTOMER LOYALTY THROUGH PURCHASING DECISION OF LION AIR AIRLINE

Nurul Humaira, Cindy Novita Audria, Edhie Budi Setiawan, Aisyah Rahmawati

Abstract


The application of the paid baggage sparked problems and rejection due to the free of charge baggage facility that has been used by many customers to be unavailable. Besides that, the increase of fees due to the rise of aviation fuel prices made the customers having second thoughts to use services by Lion Air airline. This study explores the impact of price and paid baggage towards customer loyalty through the purchasing decision on Lion Air airline. Using the method of collecting questionnaire given to Lion Air users that is analyzed using Partial Least Square – Structural Equation Modeling (PLS-SEM). The result shows that price positively affect customer loyalty, price positively affect the purchasing decision, paid baggage positively affect the customer loyalty, paid baggage positively affect the purchasing decision, and the purchasing decision mediates the relation between price and paid baggage towards the customer loyalty.

Keywords


price, paid baggage, customer loyalty and purchasing decision

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DOI: https://doi.org/10.25292/atlr.v3i0.283

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