Determinants affecting trust, satisfaction, and loyalty: A case study of low-cost airlines in Indonesia
-
Author(s)Raihanah DaulayLink to ORCID Index: https://orcid.org/0000-0003-2351-6010
,
Roswita HafniLink to ORCID Index: https://orcid.org/0000-0002-2590-2436
,
Satria Mirsya Affandy Nasution
,
JufrizenLink to ORCID Index: https://orcid.org/0000-0002-4837-7451
,
Muhammad Irfan NasutionLink to ORCID Index: https://orcid.org/0000-0001-7021-0925
-
DOIhttp://dx.doi.org/10.21511/im.20(1).2024.09
-
Article InfoVolume 20 2024, Issue #1, pp. 101-112
- 341 Views
-
105 Downloads
This work is licensed under a
Creative Commons Attribution 4.0 International License
A low-cost carrier is an airline that offers lower rates but at a lesser cost, sacrificing some convenience. This study aims to determine the effect of service quality and brand image on trust, satisfaction, and passenger loyalty to low-cost airlines in Indonesia. Primary data were collected through Google Forms and submitted via WhatsApp with the criteria of having previously used the services of Indonesian low-cost airlines. Of the 300 respondents who received the questionnaire, only 242 filled it out accurately. The data were analyzed with the help of the SmartPLS program and structural equation modeling. The findings show that service quality and brand image positively and significantly affect passenger trust, satisfaction, and loyalty (p < 0.05). Trust positively and significantly affects satisfaction (p < 0.05). Trust and satisfaction positively and significantly affect loyalty (p < 0.05). Service quality and brand image affect satisfaction through trust (p < 0.05). Service quality and brand image affect loyalty through satisfaction (p < 0.05), and trust affects loyalty through satisfaction (p < 0.05).
Acknowledgments
The research funding for this study was provided by the Ministry of Education, Culture, Research and Technology of the Republic of Indonesia under the Basic Research for Higher Education Excellence (PDUPT) category in 2022. Additionally, gratitude is extended to the various levels of leadership at Universitas Muhammadiyah Sumatera Utara, including the leadership of the Faculty of Economics and Business and the personnel of the Institute for Research and Community Service (LPPM) at Universitas Muhammadiyah Sumatera Utara.
- Keywords
-
JEL Classification (Paper profile tab)M31, M39, L93
-
References57
-
Tables4
-
Figures1
-
- Figure 1. Research framework
-
- Table 1. Composite reliability
- Table 2. Average variance extracted
- Table 3. Discriminant validity
- Table 4. Direct and indirect effects
-
- Abd-El-Salam, E. M., Shawky, A. Y., & El-Nahas, T. (2013). The impact of corporate image and reputation on service quality, customer satisfaction and customer loyalty: Testing the mediating role. Case analysis in an international service company. Journal of Business and Retail Management Research (JBRMR), 8(1), 130-153.
- Aboubakr, R. M., & Bayoumy, H. M. M. (2022). Evaluating educational service quality among dentistry and nursing students with the SERVQUAL model: A cross-sectional study. Journal of Taibah University Medical Sciences, 17(4), 648-657.
- Alfiyanto, C., Indriani, F., & Perdhana, M. S. (2020). The effect of service quality on consumer trust and customer satisfaction to improve customer loyalty on go-car transportation online in Semarang City. Diponegoro Journal of Economics, 9(1), 43-58.
- Al-Hattami, H. M., Abdullah, A. A. H., & Khamis, A. A. A. (2021). Determinants of intention to continue using internet banking: Indian context. Innovative Marketing, 17(1), 40-52.
- Alzaidi, M. S., & Agag, G. (2022). The role of trust and privacy concerns in using social media for e-retail services: The moderating role of COVID-19. Journal of Retailing and Consumer Services, 68, 103042.
- Aulia, D., & Briliana, V. (2017). Brand equity dimension and consumer behavior in social media. South East Asia Journal of Contemporary Business, Economics and Law, 13(2), 15-24.
- Azhar, M. E., Jufrizen, J., Prayogi, M. A., & Sari, M. (2019). The role of marketing mix and service quality on tourist satisfaction and loyalty at Samosir. Independent Journal of Management & Production.
- Balbin-Romero, G., Carrera-Mija, E., Serrato-Cherres, A., & Cordova-Buiza, F. (2022). Relationship between e-banking service quality based on the e-SERVQUAL model and customer satisfaction: A study in a Peruvian bank. Banks and Bank Systems, 17(4), 180-188.
- Ben Akpoyomare, O., Kunle Adeosun, L. P., & Ganiyu, R. A. (2016). Airline service quality dimensions and customer loyalty: Empirical evidence from air passengers’ in Lagos State. Czech Journal of Tourism, 5(2), 155-171.
- Bigné, E., Ruiz-Mafé, C., & Badenes-Rocha, A. (2023). The influence of negative emotions on brand trust and intention to share cause-related posts: A neuroscientific study. Journal of Business Research, 157, 113628.
- Bloemer, J., & Odekerken-Schröder, G. (2002). Store satisfaction and store loyalty explained by customer- and store-related factors. Journal of Consumer Satisfaction, Dissatisfaction and Complaining Behavior, 15, 68-80.
- Bock, D. E., Mangus, S. M., & Folse, J. A. G. (2016). The road to customer loyalty paved with service customization. Journal of Business Research, 69(10), 3923-3932.
- Cardoso, A., Gabriel, M., Figueiredo, J., Oliveira, I., Rêgo, R., Silva, R., Oliveira, M., & Meirinhos, G. (2022). Trust and loyalty in building the brand relationship with the customer: Empirical analysis in a retail chain in Northern Brazil. Journal of Open Innovation: Technology, Market, and Complexity, 8(3), 109.
- Chang, C.-S., Chen, S.-Y., & Lan, Y.-T. (2013). Service quality, trust, and patient satisfaction in interpersonal-based medical service encounters. BMC Health Services Research, 13.
- Chatterjee, S., Kittur, P., Vishwakarma, P., & Dey, A. (2023). What makes customers of airport lounges satisfied and more? Impact of culture and travel class. Journal of Air Transport Management, 109, 102384.
- Chaudhuri, A., & Holbrook, M. B. (2001). The chain of effects from brand trust and brand affect to brand performance: The role of brand loyalty. Journal of Marketing, 65(2), 81-93.
- Dam, S. M., & Dam, T. C. (2021). Relationships between service quality, brand image, customer satisfaction, and customer loyalty. Journal of Asian Finance, Economics and Business, 8(3), 585-593.
- Griffin, J. (2010). Customer loyalty: How to earn it, how to keep it. Jossey-Bass.
- Grönroos, C. (1984). A service quality model and its marketing implications. European Journal of Marketing, 18(4), 36-44.
- Hair, J. F., Hult, G. T. M., Ringle, C. M., & Sarstedt, M. (2014). A primer on partial least squares structural equation modeling (PLS-SEM). SAGE Publications.
- Hair, J. F., Sarstedt, M., & Ringle, C. M. (2019). Rethinking some of the rethinking of partial least squares. European Journal of Marketing, 53(4), 566-584.
- Hamin, H., Tung, R. L., Baumann, C., & Hoadley, S. (2018). Customers’ savings rate and share of wallet: The moderating role of religion and ethnicity/immigrant generation vis-à-vis attitude as mediator. Journal of Strategic Marketing, 26(5), 400-416.
- Hassan, T. H., & Salem, A. E. (2022). Impact of service quality of low-cost carriers on airline image and consumers’ satisfaction and loyalty during the COVID-19 outbreak. International Journal of Environmental Research and Public Health, 19(1), 83.
- Hendrawan, G. M., & Agustini, M. Y. D. H. (2021). The mediating effect of e-satisfaction and trust on the influence of brand image and e-loyalty. Journal of Management and Business Environment (JMBE), 3(1), 10-31.
- Högström, C., Gustafsson, A., & Tronvoll, B. (2015). Strategic brand management: Archetypes for managing brands through paradoxes. Journal of Business Research, 68(2), 391-404.
- Hu, K. C., & Huang, M. C. (2011). Effects of service quality, innovation and corporate image on customer’s satisfaction and loyalty of air cargo terminal. International Journal of Operations Research, 8(4), 36-47.
- Hussain, R. (2016). The mediating role of customer satisfaction: Evidence from the airline industry. Asia Pacific Journal of Marketing and Logistics, 28(2), 234-255.
- Hussain, R., Al Nasser, A., & Hussain, Y. K. (2015). Service quality and customer satisfaction of a UAE-based airline: An empirical investigation. Journal of Air Transport Management, 42, 167-175.
- Jalal, P., Ishak, N., Mohi, Z., & Shariffuddin, N. (2014). The effect of brand image on purchase intention mediates by use experience towards Furama hotel. In Hospitality and Tourism: Synergizing Creativity and Innovation in Research. Taylor & Francis Group.
- Kassim, N., & Abdullah, N. A. (2010). The effect of perceived service quality dimensions on customer satisfaction, trust, and loyalty in e-commerce settings: A cross cultural analysis. Asia Pacific Journal of Marketing and Logistics, 22(3), 351-371.
- Khanh Giao, H. N., & Vuong, B. N. (2021). The impact of service quality on passenger loyalty through the mediating roles of relationship quality: Evidence from domestic flights of Vietnamese low-cost airlines. Transportation Research Procedia, 56, 88-95.
- Kotler, P., & Keller, K. L. (2016). Marketing management (16th ed.). Pearson.
- Kurniadi, H., & Rana, J. A. S. (2023). The power of trust: How does consumer trust impact satisfaction and loyalty in Indonesian digital business? Innovative Marketing, 19(2), 236-249.
- Laine, L. T., & Ma, C.-to A. (2017). Quality and competition between public and private firms. Journal of Economic Behavior & Organization, 140, 336-353.
- Lie, D., Sudirman, A., Efendi, E., & Butarbutar, M. (2019). Analysis of mediation effect of consumer satisfaction on the effect of service quality, price and consumer trust on consumer loyalty. International Journal of Scientific and Technology Research, 8(8), 421-428.
- Lovelock, C., & Wright, L. (2002). Principles of service marketing and management. Prentice Hall.
- Marliawati, A., & Cahyaningdyah, D. (2020). Impacts the brand of experience and brand image on brand loyalty: Mediators brand of trust. Management Analysis Journal, 9(2), 140-151.
- Meesala, A., & Paul, J. (2018). Service quality, consumer satisfaction and loyalty in hospitals: Thinking for the future. Journal of Retailing and Consumer Services, 40, 261-269.
- Nasution, A. F., Safari, S., Purwati, A. A., & Panjaitan, H. P. (2022). The effect of service quality and trust on customer satisfaction and loyalty at PT. Agung Toyota Harapan Raya Pekanbaru. International Conference on Business Management and Accounting (ICOBIMA), 1(1), 96-108.
- Nuryakin, N., & Priyo, J. S. (2018). Service quality,trust and customer loyalty: The role of customer satisfactionat the hotel services industry in Indonesia. Quality Management, 19(166), 50-55.
- Nusjirwan, N., Regen, R., & Nardo, R. (2020). The role of service quality and trust in building customer satisfaction and loyalty. Budapest International Research and Critics Institute-Journal (BIRCI-Journal), 3(4), 4059-4069.
- Oliver, R. L. (2014). Satisfaction: A behavioral perpective on the customer. McGraw-Hill.
- Pal, D., Roy, P., Arpnikanondt, C., & Thapliyal, H. (2022). The effect of trust and its antecedents towards determining users’ behavioral intention with voice-based consumer electronic devices. Heliyon, 8(4), e09271.
- Park, E., Jang, Y., Kim, J., Jeong, N. J., Bae, K., & del Pobil, A. P. (2019). Determinants of customer satisfaction with airline services: An analysis of customer feedback big data. Journal of Retailing and Consumer Services, 51, 186-190.
- Putra, I. P. K., Hudayah, S., & Achmad, G. N. (2020). The effect of customer value and customer trust on satisfaction and customer loyalty PT Samator Gas Industri Samarinda Seberang. International Journal of Economics, Business and Accounting Research, 4(2), 151-160.
- Radiman, R., Wahyuni, S. F., Jufrizen, J., Muslih, M., Gultom, D. K., & Farisi, S. (2018). Effect of marketing mix, service quality, and university image on student loyalty. Proceedings of the 1st International Conference on Economics, Management, Accounting and Business, ICEMAB 2018.
- Rico, R., Tecoalu, M., Wahyoedi, S., & Purnama, E. D. (2018). The effects of trust, service quality and perceived value on satisfaction and their impact on loyalty. Proceedings of the 7th International Conference on Entrepreneurship and Business Management (ICEBM) (pp. 325-330).
- Rita, P., Oliveira, T., & Farisa, A. (2019). The impact of e-service quality and customer satisfaction on customer behavior in online shopping. Heliyon, 5(10), e02690.
- Robertson, T. S., & Gatignon, H. (1986). Competitive effects on technology diffusion. Journal of Marketing, 50(3), 1-12.
- Sallam, M. A. (2016). An investigation of corporate image effect on WOM: The role of customer satisfaction and trust. International Journal of Business Administration, 7(3).
- Saragih, M. F. Y., Absah, Y., & Rini, E. S. (2023). The effect of prior experience and trust on customer loyalty with satisfaction as an intervening variable in Mandiri supermarket Medan. International Journal of Educational Review, Law and Social Sciences (IJERLAS), 3(5), 1707-1717.
- Shen, C., & Yahya, Y. (2021). The impact of service quality and price on passengers’ loyalty towards low-cost airlines: The Southeast Asia’s perspective. Journal of Air Transport Management, 91, 101966.
- Souiden, N., Amara, N., & Chaouali, W. (2020). Optimal image mix cues and their impacts on consumers’ purchase intention. Journal of Retailing and Consumer Services, 54, 102011.
- Suhaily, L., & Darmoyo, S. (2017). Effect of product quality, perceived price and brand image on purchase decision mediated by customer trust (study on Japanese brand electronic product). Jurnal Manajemen, 21(2), 179-194.
- Uzir, M. U. H., Jerin, I., Al Halbusi, H., Hamid, A. B. A., & Latiff, A. S. A. (2020). Does quality stimulate customer satisfaction where perceived value mediates and the usage of social media moderates? Heliyon, 6(12), e05710.
- Wijaya, B. S. (2013). Dimensions of brand image: A conceptual review from the perspective of brand communication. European Journal of Business and Management, 5(31), 55-65.
- Zatwarnicka-Madura, B., Stecko, J., & Mentel, G. (2016). Brand image vs. consumer trust. Actual Problems of Economics, 8(182), 237-245.
-
Factors affecting service quality at Vietnamese retail banks
Tran Phi Hoang
doi: http://dx.doi.org/10.21511/bbs.13(2).2018.04
Banks and Bank Systems Volume 13, 2018 Issue #2 pp. 39-48 Views: 6457 Downloads: 1373 TO CITE АНОТАЦІЯSustainable growth and development can be the most important lesson that banks have learned in recent decades. Banks would gain many benefits, win the competition and develop sustainably if there have been more and more loyal customers. Customer satisfaction will help build customer loyalty. In order to have loyal customers, service quality must be good. Quality customer service of the bank is to ensure customer satisfaction and take their needs into consideration to improve service quality. High customer service quality will generate value not only to meet customer needs but also the expectations of customers and make banks more prominent than their competitors. This study identifies factors that affect customer satisfaction with the service quality at Vietnamese retail banks. The results are obtained by qualitative and quantitative method. The research model with a questionnaire consisting of 22 variables, 5 scales for a survey of 554 customers, is identified and developed through interviews with experts and group discussions. The findings show that customer satisfaction with the service quality at retail banks is influenced by “reliability”, “responsiveness”, “empathy”, “security”, and “tangibles”. Based on the findings, solutions for improving service quality are proposed for Vietnamese retail banks.
-
Perceived health risk, online retail ethics, and consumer behavior within online shopping during the COVID-19 pandemic
Yuniarti Fihartini ,
Arief Helmi ,
Meydia Hassan ,
Yevis Marty Oesman
doi: http://dx.doi.org/10.21511/im.17(3).2021.02
Innovative Marketing Volume 17, 2021 Issue #3 pp. 17-29 Views: 4453 Downloads: 1707 TO CITE АНОТАЦІЯThe risk of virus contracting during the COVID-19 pandemic has changed consumer preference for online shopping to meet their daily needs than shopping in brick-and-mortar stores. Online shopping presents a different environment, atmosphere, and experience. The possibility of ethical violations is higher during online than face-to-face transactions. Therefore, this study was conducted to investigate the influence of perceived health risk and customer perception of online retail ethics on consumer online shopping behavior during the COVID-19 pandemic, involving seven variables, namely perceived health risk, security, privacy, non-deception, reliability fulfillment, service recovery, and online shopping behavior. The data were collected through an online survey by employing the purposive sampling technique to a consumer who has shopped online during the COVID-19 pandemic in Indonesia. 315 valid responses were obtained and analyzed through quantitative method using SEM-Amos. The results showed that perceived health risk and four variables of online retail ethics including security, privacy, reliability fulfillment, and service recovery affected online shopping behavior. Meanwhile, non-deception was found to have an insignificant effect. The coefficient value proved perceived health risk to be more dominant in influencing online shopping behavior than the variables of online retail ethics. Thus, consumers pay more concern for their health during online shopping. However, positive consumer perceptions of the behavior of online retail websites in providing services also can encourage consumers to shop online during this pandemic.
-
Human resource management in promoting innovation and organizational performance
I Gede Riana ,
Gede Suparna ,
I Gusti Made Suwandana ,
Sebastian Kot ,
Ismi Rajiani
doi: http://dx.doi.org/10.21511/ppm.18(1).2020.10
Problems and Perspectives in Management Volume 18, 2020 Issue #1 pp. 107-118 Views: 3495 Downloads: 825 TO CITE АНОТАЦІЯHuman resource management (HRM) is one of the elements enabling an organization to remain competitive in turbulence conditions. The effective practice of HRM makes competent and innovative employees contributing to the achievement of organizational objectives. This study aims to analyze HRM practices in creating innovation and organizational performance. The questionnaire was used to measure the respondents’ perceptions of variables used by a Likert scale. A survey of 126 manager samples and middle managers at export-oriented short and medium enterprises (SMEs) in Bali, Indonesia, was conducted to test the model. The analysis has shown that the proposed model was proven to be compliant with the research hypotheses. HRM significantly affects organizational performance and innovation, and it was found out that innovation can improve organizational performance. However, in the process of simultaneous testing, it was found out that innovation cannot improve organizational performance. The lack of attention to investments in human resources became one of the barriers to SMEs in creating innovation.
