dc.description.abstract | Nowadays, the competition in the market becomes tighter everyday. A market that was
once a blue sea market has turned into a blood-coloured sea because there are too many
competitors in one market. This, unexceptionally, affects the airline industry. In order to
survive in this situation, a company must make a managerial decision, whether to create a
differentiation or to withdraw from the competition. In the domestic airline context, one
of the solutions for this problem is by creating an upgraded service that will be offered to
the customer. This upgraded service sometimes called as a business class or first class.
The aim of this research was to examine the influence of perceived value, which was
mediated by brand affect and brand trust, toward customer loyalty. This research is also
aiming to investigate the moderating influence of price perception on the relationship
between brand affect, brand trust and customer loyalty in the domestic flight context. This
research was conducted in Yogyakarta in the context of customer’s perception on
premium airline services. The data was collected using questionnaire based on Likert
Scale. The selection of respondent was done by convenient sampling of 237 respondents
which were chosen to represent the overall customer’s opinion. The data was analyzed
using Structural Equation Modeling and Moderated Regression Analysis using AMOS
and SPSS as the software. The result of this research found that perceived value,
mediated by brand affect and brand trust, had a significant influence on customer loyalty.
The moderating influence of high price perception also found to have a positive
influence, but not significant, on the relationship between brand trust and customer
loyalty. However, there is no moderating influence of high price perception on the
relationship between brand affect and customer loyalty. | en_US |