The impact of providing compensation services and flight delays on customer loyalty through repeat purchases on Citilink airlines at Soekarno Hatta International Airport (CGK) (Case Study: QG-978)

Abraham Setia Simorangkir, Tito Warsito, Danang Darunanto

Abstract


This study aims to examine the impact of compensation services and flight delays on customer loyalty through repurchase decisions on Citilink passengers at Soekarno Hatta International Airport (CGK). A quantitative approach was used in this study with the Structural Equation Modeling (SEM) method and data analysis using Smart PLS. The variables studied include compensation services (X1), flight delays (X2), repeat purchases as a mediating variable (Z), and customer loyalty (Y). The data source is obtained through a questionnaire distributed online to 105 respondents who have used Citilink services, based on the Isaac and Michael Table with an error rate of 5%, so the sample size is 105 respondents. The results of the analysis show that based on the retention data questionnaire statement, it turns out that the respondents gave a statement of distrust by not going to use citilink airlines again and choosing to use other airlines, which means that there is a problem with customer loyalty after delays. Effective compensation and good service quality can increase repeat purchases and customer loyalty. Conversely, flight delays have a negative impact on repeat purchases, which shows the importance of punctuality and service quality for airline companies.


Keywords


Compensation Service; Flight delay; Repeat purchase; Customer loyalty

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DOI: https://doi.org/10.25292/atlr.v7i0.666

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