Volume 5, Issue 3, March – 2020 International Journal of Innovative Science and Research Technology

ISSN No:-2456-2165

The Effect of Service Quality, Service Marketing Mix

and Costumer Value on Consumer Satisfaction and its
Impact on the Loyalty of the Consumer Industry of
the Low-Cost Carrier Flight in Indonesia
Syahrum Agung
Universitas Ibnu Khaldun

Abstract:- The objectives of this research is to analyze With the characteristics of an aviation services
impact service quality, service marketing mix, and business with high levels of product risk and timeliness
customer value on customer satisfaction and customer being important for consumers, finding the ideal model is
loyalty in low-cost carrier airline industry, in Indonesia. difficult to build without combining the variables of service
The research design used in the study is explanatory quality, marketing mix, and customer value into an
design which explains the causal relationship among inseparable part as a management effort in increasing
variables and scoring all indicators for each variables. customer satisfaction (customer satisfaction).
The study location is in Terminal-2 Soekarno-hatta
Airport, Tangerang, Banten Province. Object of airlines The low passenger satisfaction with airlines, one of
researched are Citilink, Lionair, Air Asia dan the main problems caused by several flights often delay,
WingsAir. The dissertation used primary data from this was stated by the Ministry of Transportation about the
questionnaire filled out by the 200 respondents. The on time performance (OTP) of six airlines in Indonesia for
sample selection used judgment sampling.The analysis the period January-June 2013 or Semester I The OTP value
tool used of research used descriptive statistics such as of an airline is fairly good if the value is above 80%, if the
persentage, mean, and chi-square, and Structural value is above 70% then the OTP of the airline is fairly
Equation Modeling (SEM) using Lisrel. The descriptive normal, whereas if the OTP value of the airline is below
analysis shows that the level of service quality, service 70% then it is considered bad. From this evaluation, several
marketing mix, customer value, customer satisfaction factors were found to cause flight delays, namely technical,
and customer loyalty is well perceived. The results of non-technical and weather factors. Operational technical
relationship among variables stated that the Service factors are factors of delay caused by airport conditions
Quality has significant impact on customer satisfaction (outside of airline management) such as airports cannot be
and loyalty, marketing mix has no significant impact on used, runway cracks, delays in refueling, and queues of
customer satisfaction and loyalty; Customer value has aircraft that will take off or landing at the airport.
significant impact on customer satisfaction and loyalty,
and customer satisfaction has significant impact on Second, non-technical operational factors, namely
customer loyalty, flight delays caused by airline management such as flight
crew delays, catering delays, delays due to waiting
Keywords:- Loyalty , Service Quality, Marketing Mix, passengers who will check-in, aircraft unpreparedness and
Value, Satisfaction. late handling on land. These factors accounted for 49.63%
or as many as 36,702 flights. Third, the weather factor with
I. INTRODUCTION a percentage of 15.84% or as many as 11,713 flights.
Fourth, other factors, namely flight delays caused by
At present almost all airlines have programs to make outside airline management, operational techniques, and
loyal customers, where all of them have similar programs. weather, such as riots or demonstrations in the airport area.
Travelers collect points by taking personal trips or business These factors accounted for 2.57% or as many as 1,902
trips with their partners using airlines, which then points flights.
can be exchanged for air travel or other prizes. The entire
loyalty program is designed for the simple purpose of While the factors causing flight cancellations include:
giving a reason for passengers to continue using certain First, operational technical factors with a percentage of
flight services. And now loyalty program users are a very 0.50% or as many as 370 flights. Second, operational non-
profitable source of revenue for airlines - in fact, they have technical factors 2% or as many as 1,481 flights. Third,
also been adopted by low-cost carriers (LCCs) such as weather factors are 7.74% or as many as 5,726 flights, and
AirAsia, Jetstar and Cebu Pacific. How can airlines be able fourth, other factors are 0.13% or as many as 94 flights.
to get greater loyalty from today's travelers who are From the data above shows that the problem of flight
increasingly diverse, have to influence, and are faced with delays caused by the biggest factor is non-technical
more choices than ever before? Building customer loyalty operations caused by airline management, it will affect the
is not easy with the increasing number of airlines. performance of the service and the assessment of
consumers.

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Volume 5, Issue 3, March – 2020 International Journal of Innovative Science and Research Technology
ISSN No:-2456-2165
From the identification of the problems above, there A. Effect of Service Quality on Consumer Satisfaction
are several factors that affect the satisfaction and loyalty of The relationship between service quality and
airline customers, including the quality of service they feel, consumer satisfaction according to the thoughts of Hui,
the products of the airline, the promotions they do and the Kandampully and Juwaheer (2009) along with the thoughts
customer value they get. Based on the formulation of this of Lai, Griffin, and Babin (2009) which states that service
problem, the following research questions were asked. quality has a positive effect on customer satisfaction.
According to Schnaars in Hasan (2009) satisfied consumers
 Is there an effect of service quality on consumer can provide a good basis for repeat purchases and the
satisfaction in the domestic low-cost-carrier flight creation of consumer loyalty. Sanka (2012) revealed that
service industry in Indonesia? there is a positive and significant correlation between
 Is there an influence on the service marketing mix on dimensions of service quality and customer satisfaction.
the satisfaction of the low-cost-carrier domestic aviation According to Bedi in Ming et al. (2010) providing high
services industry in Indonesia? quality services is a must for achieving consumer
 Is there an influence of customer value on customer satisfaction. The research is in line with Naeem and Saif
satisfaction in the domestic low-cost-carrier flight (2009) who find that consumer satisfaction is the result of
service industry in Indonesia? service quality.
 Is there an effect of service quality on consumer loyalty
in the low-cost-carrier domestic aviation industry in Bahar et al. (2009) state user satisfaction is a major
Indonesia? factor in assessing service quality, where consumers assess
 Is there an effect of the service marketing mix on the performance of services received and that are felt
consumer loyalty in the low-cost-carrier domestic directly to the product of service. Munawaroh's research
aviation industry in Indonesia? results (2005) state that good service quality is very
 Is there an effect of customer value on consumer loyalty important in creating customer satisfaction. Other research
in the low-cost-carrier domestic aviation service shows that unlike Hu's (2012) findings, Wardhani's (2006)
industry in Indonesia? study found that to be able to survive and win the
 Is there an influence of customer satisfaction on competition in the aviation services industry, airline
consumer loyalty in the low-cost-carrier domestic companies need to have excellent service quality compared
aviation service industry in Indonesia? to competitor companies because consumers will only be
loyal if the quality of services provided in accordance with
II. LITERATURE REVIEW consumer expectations. The results of Wardhani's research
(2006) confirm that it is not enough for aviation service
One important factor that is considered by consumers companies to be able to exist in the aviation industry only
in buying a flight service product is the service factor, to promote the marketing mix strategy but it is necessary
which is related to the service or information provided by for companies to implement integrated marketing and
the flight attendant to passengers. Service is reflected in the service mix in an effort to increase perceived value and
five dimensions of service quality, namely employee customer satisfaction.
attitudes and behavior, Access, Reliability, Recovery, and
Reputation, according to Fathi and Farahmand (2013) the Based on the results of these studies, the following
better the staff's ability to provide services, the more hypotheses can be established:
satisfied consumers will be. In addition, the consumer's H1: Service quality affects customer satisfaction
decision to choose to use aviation service product or the
reason consumers switch to competitors is inseparable from B. The Effect of Marketing Mix on Consumer Satisfaction
the influence of the marketing mix (7P), namely product, According to Kotler and Armstrong (2012) product
price, place, and promotion, people, process, physical quality is a characteristic of a product related to its ability
evidence. Thus, the right strategy is needed in making a 7P to meet stated or implied consumer needs. Quality has a
combination so that the products offered by the company direct impact on product performance so that it is closely
can produce levels of customer satisfaction that have related to Costumer Value and satisfaction. Prices affect the
implications for customer loyalty. This statement is level of sales, profits, and market share that can be
supported by Raj and Arokiasamy (2012) who found that achieved by a company. According to Xia, Yang, Jackson,
consumer loyalty is determined by the marketing mix that Stoffa, and Sen (2004) price justice refers to the consumer's
has been done by the company. Cengiz (2007) also states judgment whether the price set by the seller is reasonable or
that the marketing mix affects the level of consumer not, acceptable to the consumer or not. The results of the
satisfaction, which in turn will affect consumer loyalty. In study of Xia, et al. (2004) price factors influence consumer
addition to service quality and marketing odors, according satisfaction and customer loyalty, the findings of this study
to Cengiz (2007) Costumer Value also influences consumer are reinforced by the results of Herrmann et al. (2007) who
satisfaction and customer loyalty as reflected in 4 found that consumer satisfaction was directly affected by
dimensions, namely transparency, comfort, social value, price perceptions.
monetary value.

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Volume 5, Issue 3, March – 2020 International Journal of Innovative Science and Research Technology
ISSN No:-2456-2165
Widagdo (2011) states that one of the factors that can E. Effect of Marketing Mix on Consumer Loyalty
influence consumers in purchasing a product is intensive The marketing mix can be used as a marketing tool
promotion. Promotion is essentially a form of marketing that makes it easy for companies to achieve their marketing
communication aimed at driving demand. What is meant by goals. The components in the marketing mix include
marketing communication is marketing activities that seek product, place, price, promotion. The results of Maulindah's
to disseminate information, influence and or remind target (2011) research found that there was a significant positive
markets for companies and their products to be willing to effect on product, place, price, promotion on consumer
accept, buy, and be loyal to the products or services offered loyalty. Meanwhile, Cengiz and Yayla (2007) formed a
by the company concerned. research model by hypothesizing that the marketing mix as
a single variable has many implications both directly and
Distribution here is related to efforts to facilitate and indirectly on customer satisfaction, perceived value,
facilitate the delivery of products from producers to customer loyalty, and word of mouth. The results of the
consumers so that their use is as needed. Companies must study prove that the marketing mix influences both directly
determine what methods and channels will be used to and indirectly on customer satisfaction, perceived value,
deliver products to consumers, this will certainly form the customer loyalty, and word of mouth.
selection of distribution channels that can work well so that
products can reach consumers and meet their satisfaction. In contrast to Cengiz and Yayla (2007), the findings
of Alfin and Alhabsji (2013) found that service quality and
Asgharpoour (2012) states that distribution factors product quality have a significant effect on corporate image
provide facilities for consumers; or provide access to a and customer satisfaction, and proven corporate image has
product. Asgharpoour's research results (2012) found that a significant effect on customer satisfaction and customer
the distribution intensity had a significant positive effect on trust, but the corporate image has no effect on customer
customer satisfaction. satisfaction. If the findings of Cengiz and Yayla (2007) find
four elements of the marketing mix have a significant effect
Based on the results of these studies, the following on customer satisfaction, perceived value, customer loyalty,
hypotheses can be established: and word of mouth, in contrast to Owomoyela and
H2: Marketing Mix influences Consumer Satisfaction Olasunkanmi's (2013) research which found that the price
element has no significant effect on customer loyalty. From
C. Effect of Costumer Value on Consumer Satisfaction the several studies conducted above, it is seen that each
Value is an estimate of consumers about the total research has a different model framework and the
ability of a product to meet their needs. The value of each implications for loyalty and word of mouth are also
product actually depends on how far the product can different.
approach the ideal product, including the price.
Management must be able to know where and how to offer Based on the results of these studies, the following
high value. A high value will result in customer hypotheses can be established:
satisfaction. This is supported by research Tam (2004) H5: Marketing Mix influences Consumer Loyalty
which shows the fact that perceived value has a positive
effect on customer satisfaction. F. Effect of Customer Value on Consumer Loyalty
Yang and Peterson (2004) found the perception of
Based on the results of these studies, the following customer value has a positive effect on customer loyalty,
hypotheses can be established: customer satisfaction has a positive effect on customer
H3: Costumer Value affects Consumer Satisfaction loyalty, the perception of customer value has a positive
effect on customer satisfaction. Novianti et al (2019) and
D. Effect of Service Quality on Consumer Loyalty Pan et al (2011) found that consumer satisfaction has a
Research by Manjunath and Aluregowda (2013) positive effect on consumer loyalty. Atalik and Arslan
shows that service quality is an important element in (2007) examined the effect of customer value on consumer
creating customer satisfaction and loyalty. Siddiqi (2011) loyalty in the aviation service industry in Turkey, the study
states consumer loyalty results from high-quality service departed on the thought that there has been a shift of
and customer satisfaction. Akbar and Parves (2009) marketing activities that only focus on issues of quantity,
explained that service quality and loyalty have a positive quality, functionality, availability, accessibility, delivery,
and significant relationship. price shifts to Costumer Value creation. The results found
that Costumer Value had a significant positive effect on
In making policies to increase loyalty, service quality consumer loyalty.
needs to be considered because it affects customer loyalty
(Yani, 2004). Based on the results of these studies, the following
hypotheses can be established:
Based on the results of these studies, the following H6: The Value of the Customer influences Consumer
hypotheses can be established: Loyalty
H4: Service Quality influences Consumer Loyalty

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ISSN No:-2456-2165
G. Effect of Consumer Satisfaction on Consumer Loyalty more often, become the strong word of mouth, create
In the research of Molina et al. (2007), Molaee et al. business referrals. Based on the theoretical review above,
(2013) and Anggraeni and Kerti Yasa (2012) stated that the framework of this research can be elaborated as
there is a positive and significant influence between follows:
customer satisfaction and customer loyalty. Anton in Singh
(2006) states that repurchase intentions, recommending H7: Consumer Satisfaction influences Consumer Loyalty
products or services, loyalty and profitability have a
positive relationship with satisfaction. Hallowell (1996) Based on the results of the hypotheses above, the
which states that customer satisfaction is a prerequisite for conceptual model of this study can be described as in
consumer loyalty. Loyal consumers have a lower tendency Figure as follows:
to switch brands, are less price-sensitive, buy more and

Fig 1:- Conceptual Framework

 Hipotesis This research was conducted from January 2017 in the

Based on the framework in the picture above can be form of collecting preliminary data and information in
used for research models, then the research hypothesis can order to determine the problems indicated in the research
be formulated as follows: object. This research was conducted at Terminal 2,
H1: Quality of service affects customer satisfaction in the Soekarno-Hatta Airport in Tangerang, Banten, a gathering
low-cost carrier airline service industry in Indonesia. place for people who were leaving or had arrived on a low-
H2: The marketing mix affects customer satisfaction in the cost carrier. The list of names of airlines in Indonesia
low-cost carrier airline service industry in Indonesia. included in the low-cost carrier group is Citilink, Lionair,
H3: Costumer Value influences customer satisfaction in the Air Asia and WingsAir. In this study, the study population
low-cost carrier airline industry in Indonesia. was all consumers who had carried out flight activities
H4: Service quality influences consumer loyalty in the low-
cost carrier airline service industry in Indonesia. The sampling technique in this study uses a
H5: Marketing mix influences consumer loyalty in the low- probability sampling technique that is a sampling technique
cost carrier airline service industry in Indonesia. that provides equal opportunities for each element
H6: The value of the customer influences consumer loyalty (member) of the population to be selected as a sample
in the low-cost carrier airline service industry in Indonesia. member. The sampling technique in this study uses
H7: Consumer satisfaction influences consumer loyalty in judgment sampling by selecting respondents who have just
the low-cost carrier airline service industry in Indonesia. arrived at the Terminal -Final terminal:
 Soekarno-Hatta Airport, Tangerang, Banten Province;
III. RESEARCH METHDOLOGY  Juanda Airport, Surabaya, East Java Province;
 Kualanamu Airport, Medan, North Sumatra;
The design in this study belongs to causal design,  Halim Perdana Kusuma Airport, Jakarta, DKI Jakarta
which is a design that aims to analyze the relationship Province, and
between one variable with another variable. In order to  Adi Sutjipto Airport, Yogyakarta.
fulfill the design, the research was conducted descriptively
and explosively. Descriptive research to describe or The respondent waits at various resting places to
describe the condition of each research variable after using continue the journey home. The selected respondents were
empirical data, while explanation research to explain the users of low-cost-carrier flights from the 4 brands above
causal relationships between research variables. For testing that were used at least 2 times in a row. Sampling was done
hypotheses used quantitative techniques with multivariate at the airport because passengers still experience
analysis methods, including the development of structured remembering and they can feel directly tangible. In
equation models (SEM). addition, guarding the objectivity of passengers who have

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Volume 5, Issue 3, March – 2020 International Journal of Innovative Science and Research Technology
ISSN No:-2456-2165
actually boarded a plane. This research will use 200  Incremental Fit Index (IFI)
samples IFI values are generally above 0.9 to indicate that the
model is fit. Therefore, because the IFI value is 0.77, the
IV. DATA ANALYSIS model is not fit.

 The goodness of Fit Analysis  Relative Fit Index (RFI)

To find out whether the proposed structural model is RFI values generally above 0.9 indicate the model is
compatible with facts or empirical data (goodness of fit), it fit. Therefore, because the RFI value is 0.64, the model is
is carried out with various criteria, namely: not fit.
 Absolute fit indices,
 Incremental fit índices, C. Parsimonious fit indices criteria
 Parsimony fit índices.  Expected Cross-Validation Index (ECVI)
The model is fit if the ECVI is smaller than the ECVI
According to Hair et al. (2010), the use of 4-5 independence value. Therefore, because the ECVI value is
goodness of fit criteria is sufficient as long as each of the 2.11 and ECVI independence is 8.54, the model is fit.
goodness of fit criteria is represented.
A. Absolute fit indices criteria  Akaike Information Criterion (AIC)
 Chi-Square Probability Value The model is suitable if the AIC value is smaller than
Chi-Square probability value of at least 5% shows that the independence AIC value. Because the AIC value is
empirical data has similarities with the theory. Because the 457.52 and the Independence value of AIC = 1698.73, the
probability value is 0.0 under 5%, the model is not fit. model is fit.

 Root Mean Square Error of Approximation (RMSEA)  Consistent Akaike Information Criterion (CAIC)
RMSEA value of less than 5% percent is a measure The model is suitable if the CAIC value is smaller
that the model is fit, values ranging from 0.05 to 0.08 than the saturated and independence CAIC values.
indicate that the model has a reasonable error estimate. Therefore, because the CAIC value is 672.44, the Saturated
Therefore, because the probability value is 0.07 below 0.1, CAIC value is 1322.65 and Independent CAIC is 1784.7,
the model is fit. the model is fit.

 The goodness of Fit Index (GFI)  Parsimonious Goodness of Fit Index (PGFI)
GFI value is a measure of the accuracy of the model in If the PGFI value is> 0.60, then the model is fit.
producing observed matrix covariance. GFI values range Therefore, because the PGFI value is 0.65, the model is fit.
between 0 and 1. GFI values greater than 0.9 indicate a
good model fit. Therefore, because the GFI value is 0.85,  Root Mean Residual (RMR)
the model is not fit. RMR value below 0.1 will be better. Thus, because
the value of the RMR is 0.084, the model is fit. Based on
B. Incremental fit indices criteria the results of the Goodness of Fit test, it is known that from
 Adjusted Goodness of Fit Index (AGFI) the Incremental fit indices criteria there is not a single
AGFI values greater than 0.9 indicate a good model benchmark that states the fit model. Therefore it is
fit. Thus, because the AGFI value is 0.80, the model is not concluded that there will be at least one test of influence
fit. between variables that are not significant.

 Normed Fit Index (NFI)  Structural Model Analysis

NFI values generally above 0.9 indicate the model is After analyzing the measurement model, so does the
fit. Therefore, because the NFI value is 0.70, the model is analysis of goodness of fit, next is the structural model
not fit. analysis to determine the effects of variables in the research
model. As a starting point, if the statistical value of t is
 Comparative Fit Index (CFI) greater than the statistical value of t (table) of 1.96, the
CFI values generally above 0.9 indicate a fit model. magnitude of the effect is significant or real.
Therefore, because the CFI value is 0.77, the model is not
fit.

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Volume 5, Issue 3, March – 2020 International Journal of Innovative Science and Research Technology
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Fig 2

 Evidence of the Research Hypothesis V. DISCUSSIONS AND FINDINGS

 The influence of Service Quality on Consumer
Satisfaction is 0.34. Statistical value of t arithmetic = Based on the results of descriptive analysis and
3.13 above the value of t table (n> / = 30; α 5%) = 1.96. causality analysis, there are analysis results that need to be
Thus, the null hypothesis is rejected, so that Service discussed further because they are not in line with
Quality influences Consumer Satisfaction. expectations. The results of the analysis are summarized in
 The magnitude of the influence of the Marketing Mix the following sub-chapters, namely:
on Consumer Satisfaction is 0.04. Statistical value t =
0.24 under 1.96. Thus, the null hypothesis is accepted,  Influence test
so that the Marketing Mix does not significantly
influence Consumer Satisfaction. A. Service Quality affects Consumer Satisfaction.
 The influence of Customer Value on Consumer The results of this study indicate that service quality
Satisfaction is 0.33. The statistical value of t arithmetic affects customer satisfaction. One factor that determines
= 2.26 above 1.96. Thus, the null hypothesis is rejected, customer satisfaction is the customer's perception of the
so that Customer Value influences Consumer quality of services provided. Customer perception of
Satisfaction. service influences:
 The influence of Service Quality on Consumer Loyalty  The level of customer interest
is 0.24. The statistical value of t arithmetic = 2.19 above  Customer satisfaction
the value of 1.96. Thus, the null hypothesis is rejected,  Score
so that Service Quality influences Consumer Loyalty.
 The magnitude of the influence of the Marketing Mix The process of perception of a service does not require
on Consumer Loyalty by 0.01. Statistical value t = 0.08 the customer to use the service first. The factors that
below 1.96. Thus, the null hypothesis is accepted, so influence customer perception or service are:
that the Marketing Mix does not significantly influence  Price
Consumer Loyalty.  Imagery
 The influence of Customer Value on Consumer Loyalty  Service phase
is 0.27. The statistical value of t arithmetic = 2.00 above
the value of 1.96. Thus, the null hypothesis is accepted,  Moment of service
so that Customer Value influences Consumer Loyalty. This is in line with research conducted by Jangdish, N
 The effect of Consumer Satisfaction on Consumer Sheth (1991). Airlines need to pay attention to factors that
Loyalty is 0.38. The statistical value of t arithmetic = influence customer perceptions of the service industry.
1.99 above the value of 1.96. Thus, the null hypothesis
is rejected, so that Consumer Satisfaction influences
Loyalty

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According to Michael Porter a company is also the consumer loyalty variable. The quality of services
influenced by the industrial environment. The strength of starting from the airline's physical facilities used by
the competition is consumers such as bus facilities, check-ins, aircraft
 The threat of new entrants (barries to new entry) conditions need to be considered by the airline
 The threat of substitution products
 Bargaining power of suppliers (bargaining power of E. The marketing mix does not significantly influence
suppliers) Consumer Loyalty.
 Bargaining power of buyers (bargaining of customers) In this study shows that the marketing mix does not
 Fighting between members of the industry (rivalry significantly influence consumer loyalty, it shows that the
among exiting firms) airline needs to innovate to strengthen consumer loyalty. In
accordance with Kim's theory (2017; 44) it is necessary to
From the consumer side, consumers have influence or raise. Airlines need to improve services and expand market
bargaining power. Consumers demand better service share and expand market segments. The quality of services
quality and also want lower prices. provided must focus on consumers by providing
improvements including by:
B. The marketing mix has no significant effect on  Improve facilities such as wider seat spacing.
consumer satisfaction.  Continuously communicating with customers, one of
In this study, the result is that the Marketing Mix does them is by creating loyalty programs, for example with
not significantly influence consumer satisfaction. The the LLCC (Loyalty Low-Cost Carrier) program.
marketing mix is a set of tools that marketers can use to
shape the characteristics of services offered by customers In order to expand market segments, it is necessary to
(Keller, 2009). This study shows that the marketing mix create new programs to increase consumer loyalty. Loyalty
does not affect satisfaction, it shows that all the sets of tools programs that can be developed are loyalty programs that
used do not all affect. The findings in this study are that penetrate the family. This program can be called the Low-
facilities such as comfortable seats have little value and the Cost Carrier Family Loyalty
service for quite a lot of delays but other indicators almost
all have high values, so indicators that have low values will F. Customer Value influences Consumer Loyalty.
be covered with other values. Consumers have the choice In this study, it was found that customer value affects
of several low-cost carrier airlines that provide competitive consumer loyalty. In this study in line with research
offers starting from price, products offered, promotions, conducted by Kim (2017) new innovations and creativity
and location. In the porter, theory states a low-cost are needed. Companies need to create value innovation to
leadership strategy (overall cost leadership) (Porter, 1985). their customers, namely by providing the maximum benefit
In this theory, the characteristic is that the company but by reducing costs as low. This requires innovation and
concentrates its attention on the selling price of cheap creativity. In this study, researchers suggest that airlines
products to reduce production costs, promotion and make innovations that can provide more benefits for
research. In this study, all airlines put forward low prices consumers including trimming the check-in process,
consumers who already have tickets directly get a seat,
C. Customer Value influences Consumer Satisfaction. consumers will be faster in the check-in process, so that
In this study shows that customer value affects consumers will be more efficient in time. Other strategies
customer satisfaction, consumers will see how much value that can be used to increase customer value by reducing
is issued with the benefits received. This is in line with the costs include reducing in-flight entertainment, operating
theory of Keen (2003: 273) which states that Cost-Benefit second-hand aircraft, and using airports that are not playing
Analysis as an analysis that describes the business reasons, airports. If costs can be reduced, it is hoped that there will
why or why specific investment is not chosen. According to be units that can be improved in quality such as service
Remenyi (2007: 152), defining Cost-benefit Analysis processes and other marketing mix strategies.
(CBA) is to evaluate whether the effectiveness of benefits
is greater than the cost or easily meets the needs of the G. Consumer Satisfaction influences Consumer Loyalty.
community. In line with this theory, the consumer will In this study, customer satisfaction affects customer
evaluate the costs he incurred. loyalty, it shows that airline customer satisfaction must be
built, from customer satisfaction will form loyalty. This
D. Service Quality affects Consumer Loyalty. theory is consistent with Griffin's theory, Jill (2005: 31),
In this research, it is shown that service quality customer satisfaction is a measure for companies to get
influences consumer loyalty. This is in line with this loyalty from consumers and loyalty is a reliable measure to
research, according to the theory from Griffin, Jill (2012), predict growth and sales. In building consumer loyalty
in building customer satisfaction an airline must pay when it comes to flight, management needs to look at who
attention to one of them variable service quality. Good is the market segment of the LCC. The LCC Aviation
service quality will affect customer satisfaction. Customer Market Segment is on average Baby Boomers, Generation
satisfaction will have an impact on consumer loyalty. In X and Generation Z for which they have their own
this study, customer satisfaction is an intervening variable. characteristics.
The results of this study indicate that the customer
satisfaction variable as an intervening variable strengthens

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The loyalty of each generation is very different, if in grandiose, the reality is that there are still
the past loyal customers were measured by making disappointments.
repeated purchases regularly, buying between product lines  Loyalty. In this variable, there are indicators that
and services, referring to others and showing immunity to become a barrier to consumer loyalty, namely
competitors' attractiveness. The airline must see that the consumers will choose the cheapest price of the
factors that affect loyalty are very segmented. Several available airlines, except when on the specified
factors affect loyalty: schedule only 1 type of airline will serve it.
 Factors that influence loyalty are internal and external
factors, internal factors consist of psychological factors Based on the results of the low assessment, further
and personal factors. While external factors consist of deepening is done to understand it and provide input
social, cultural, social class factors. solutions to management.
 Internal factors include motivation, perception, lifestyle
and the learning process  The top management of the low-cost carrier airline
 Compilers of social factors are people's life style, work periodically must evaluate the company's strategy and
environment and friends, family environment and the functional strategies related to the marketing mix of
media services, especially those applied to this type of aviation
 Personality and values is one of influencing consumer services. Attention especially on marketing mix that has
loyalty a direct impact on consumers, so that customer
satisfaction, values, and loyalty can be improved.
From these factors, the airlines need to study these  In terms of the service process, namely how the airline
factors to make recommendations in decision making. office at the airport when helping passengers check-in,
serving passengers in the cabin and exiting the plane, as
VI. IMPLICATION FOR MANAGEMENT well as luggage safety. In the service process, it is
expected that a pleasant attitude from the officer must
Summary results of the descriptive analyzes of each be maintained so that it remains in an optimal position.
dimension that were rated low on each variable are restated. Therefore, the causes that make officers feel dissatisfied
with work and have a bad impact when serving
 Quality of Service. In this variable, the Access passengers must be known and addressed.
dimension is consumer disappointment over the fact  In the event of a delay or departure delay. One cause of
that departure is delayed and the lack of information is the delay is due to a series of delays that are difficult to
fast and transparent, and service rights to consumers as avoid. Officers should have been able to serve
a result of delays outside the time limit are still low. passengers who seemed disappointed with the delay.
 Marketing mix. In this variable, in terms of the  This type of logging airline determines the frequency of
marketing mix offered to consumers, it turns out that departures with many time schedules, even though the
complained about is the service product offered, such as number of passengers can be served with fewer time
a narrow seat and the type of food and drinks offered schedules. As a result, there was an intent to divert
are too simple, especially expensive. In addition to passengers' departure on the next flight. Therefore, this
products, the service process of employees at check-in delay is deliberate by airlines in the field. Departure
locations and on hospitality aircraft as well as firmness delays or advance flight departure hours even though
is inadequate. Services for delays / adequate delay still informed by email, SMS, or WA is a disappointment for
do not provide satisfaction to consumers, because the prospective passengers, because it will change the plan
airline has not provided maximum service in the event that was previously prepared.
of a delay. The form of compensation given to  Implement a management information system as
consumers in the event of a delay still does not provide follows: Passenger Service Solution, Internet Booking
satisfaction to consumers. The departure schedule (take- Engine System, Self Service System, Cargo Integration
off) from the assessment results still has a negative Solution, and Network and Schedule Management
value, meaning that there are still airlines that do not System so that all can be monitored properly.
match the scheduled departure. From the findings
above, it is necessary to study the types of consumers  Education and Training
today, at this time consumers do not only focus on As an aviation service industry, aspects of the
product-based (quality products) but they need customer availability of human resources both in quantity and
satisfaction, customer care, customer engagement and quality, qualifications, and competencies must be
empowering the customer through real-time delivery. possessed. Cases of the behavior of pilots, stewards or
 Customer Value. In this variable, the social dimension officers on the runway should not need to occur if the
with indicators of pride felt and sense of prestige to be development of human resources goes well. Therefore, HR
shown, such as those of friends/colleagues / family, development through the implementation of training
does not appear. programs and HR development must be carried out
 Consumer satisfaction. Consumers have tried to effectively. Likewise, the monitoring and evaluation of HR
suppress the hopes or desires of airline services. performance must be able to be carried out according to
However, even though consumer expectations are not high-quality standards and good SOPs.

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Volume 5, Issue 3, March – 2020 International Journal of Innovative Science and Research Technology
ISSN No:-2456-2165
VII. CONCLUSION SUGGESTION

A. Conclusion of Descriptive Analysis results Based on the results of research and discussion, and
All findings have been analyzed based on descriptive adjusted for the benefits of this study, the suggestions
studies and have also been discussed. It is known that proposed are:
consumers judge badly for delayed departures as well as the
lack of information about them; narrow seating and the type A. For the Government
of food and drink offered is too simple; and the attitude of  Public sector companies that serve the public
employees at check-in locations and on planes where specifically Indonesian citizens must be protected under
friendliness and firmness are inadequate. the laws and regulations derived from it
 Specifically for government airlines, they must
However, the discussion section has ended by participate in controlling public sector services such as
providing input to the airline management one of the the formation of the Indonesian national airline
solutions that need to be considered based on the input association.
from the respondent. With improvements in the positive  The government should review the departure schedule
direction for consumers, it is expected that the level of proposed by the airline.
consumer satisfaction will increase and also have an impact  Implementation of flight schedule implementation must
on true loyalty.. be closely monitored by flight route supervisors.
 The addition of a new airport specifically for LCC, of
B. Conclusion of Causality Analysis course, can be a solution for the already very heavy
Based on the results of the causality analysis in the traffic and reduce schedule delays.
form of influence between latent variables in the model set  Determination of lower and upper fares must be
in chapter 3, it is concluded that not all hypotheses have a reviewed, so that flight safety must not be reduced,
positive and significant influence. because all airlines must have the same level of safety,
both LCC and medium and full service.
The accepted hypotheses are:  To reduce the level of accidents the government needs
 Quality of service to consumer satisfaction of the low- to make rules to monitor financial reports, maintenance
cost-carrier domestic aviation service industry in reports and aircraft maintenance on a regular basis
Indonesia
 Customer value for consumer satisfaction in the low- B. For the company's management
cost-carrier domestic aviation service industry in Based on the results of this study the company must
Indonesia pay attention to the following matters:
 Quality of service to consumer loyalty in the low-cost-  Management needs to review the service strategy to find
carrier domestic aviation industry in Indonesia out weaknesses as well as to develop better service
 Customer value for consumer loyalty in the low-cost- programs including:
carrier domestic aviation service industry in Indonesia  Provide better quality services such as comfortable
 Consumer satisfaction with consumer loyalty in the chairs and other facilities that meet consumer comfort
low-cost-carrier domestic aviation service industry in  The speed of response from the airlines to complaints.
Indonesia  Guarantees against schedule delays, airlines should
adhere to the schedule according to permits and
The rejected hypotheses are: recommendations set by the Ministry of Transportation,
 Marketing Mix does not affect Consumer Satisfaction, so that consumers are not disadvantaged.
whereas according to the concepts and results of  The airline must be able to provide several alternative
previous studies there is a positive and significant communications that can be used to make it easier for
effect; passengers to meet in asking for help.
 Marketing Mix does not affect Consumer Loyalty,  Airlines must be able to convince customers that the
whereas according to the concepts and results of aircraft they are using is able to guarantee the safety of
previous studies there is a positive and significant passengers so that responsibility and professionalism of
effect. work from pilots or staff of the airlines are required.
 Management needs to review departure schedules in
order to minimize the risk of departure delays rather
than excessive departure schedules.
 There should be a separation between LCC aircraft
airports and large planes. For example, special airports
to accommodate aircraft for the LCC fleet are stationed
outside the city. Meanwhile, the main airport is near the
city.

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Volume 5, Issue 3, March – 2020 International Journal of Innovative Science and Research Technology
ISSN No:-2456-2165
 Management needs to review what customer value has [3]. Amir Mahmud, Kamaruzaman Jusoff dan St. Hadijah,
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