Analysis of Customer Value Model of the Aviation Service in Indonesia

Yhani Mardani, Ratih Huriyati, Vanessa Gaffar

2017

Abstract

Companies can build loyalty if customers are able to provide superior customer value. Meanwhile, there is a shift in the trend of using airline servgcbme in Indonesia. These conditions lead to passengers’ disloyalty to an airline. Meanwhile, the aviation service industry has a fairly low customer value compared to other industries. Several research have shown the relationship between customer value with Customer Relationship Management (CRM) and sales promotion. Therefore, this study aims at examining the influence of Customer Relationship Management (CRM) and sales promotion to the value of airline customers in Indonesia. This study employed quantitative approach. The analytical units of this study are four national airline companies that have issued passenger memberships (Frequent Flyer) namely Lion Air (Lion Air Passport), Citylink (Supergreen Card), Air Asia (Big Loyalty Card) and Batik Air (Batik Frequent Flyer Card). The population in this study is all airline passengers who are recorded as a member (frequent flyer) in the four national airlines. The observation was conducted using cross section or one shoot time horizon, which wasin 2018. Data were obtained through questionnaires from samples consisting100 passengers from the four airlines. To test the hypothesis, partial least squares path modeling (PLS-PM) was used. The results showed that CRM and sales promotion hada significant influence on customer value in the aviation industry in Indonesia. Sales promotion hada greater role than CRM in improving customer value. CRM also provided a significant role in increasing customer value.These findings provide implications for airlines in an effort to increase customer value through the development of sales promotion and CRM

Paper Citation

in Harvard Style

Mardani Y., Huriyati R. and Gaffar V. (2017). Analysis of Customer Value Model of the Aviation Service in Indonesia.In Proceedings of the 2nd Global Conference on Business, Management and Entrepreneurship - Volume 1: GC-BME, ISBN 978-989-758-333-9, pages 148-157. DOI: 10.5220/0007116401480157

in Bibtex Style

@conference{gc-bme17,
author={Yhani Mardani and Ratih Huriyati and Vanessa Gaffar},
title={Analysis of Customer Value Model of the Aviation Service in Indonesia},
booktitle={Proceedings of the 2nd Global Conference on Business, Management and Entrepreneurship - Volume 1: GC-BME,},
year={2017},
pages={148-157},
publisher={SciTePress},
organization={INSTICC},
doi={10.5220/0007116401480157},
isbn={978-989-758-333-9},
}

in EndNote Style

TY - CONF

JO - Proceedings of the 2nd Global Conference on Business, Management and Entrepreneurship - Volume 1: GC-BME,
TI - Analysis of Customer Value Model of the Aviation Service in Indonesia
SN - 978-989-758-333-9
AU - Mardani Y.
AU - Huriyati R.
AU - Gaffar V.
PY - 2017
SP - 148
EP - 157
DO - 10.5220/0007116401480157