FACTORS THAT INFLUENCE LION AIR’S CUSTOMER SATISFACTION AND CUSTOMER LOYALTY IN SURABAYA

Abstract

The aviation industry in the Asia-Pacific region has shown robust growth in 21st century. Indonesia, the current engine of economic growth in Southeast Asia and one of the largest economies in the Asia-Pacific, contains a burgeoning middle class that is increasingly using airplanes for domestic and international transport. As a result Indonesia’s private owned airlines Lion Air plays a big role in Indonesia. Making headlines on ordering new aircraft, breakthrough bounderies, and be a market leader on budget airline industry in order to fullfil the growing demand of air traveler in Indonesia. Therefore, the researcher has planned to conduct the study of factors that influences Customer Satisfaction and Customer loyalty of Lion Air. The data used in this test were collected from 100 respondents. Five-point Likert type was used to obtain respondent’s level of agreement. The eligibility of 100 respondents, they must have flown at least one time in the past six months with Lion Air in and out of Surabaya. The study revealed significant result of Customer Expectation towards Customer Satisfaction and Customer Satisfaction towards Customer Loyalty, while Price insignificantly effect Customer Satisfaction, This research used descriptive analysis, simple, and multiple linear regression analysis with SPSS to test the relationship between variables. This research finding revealed that Lion Air must work extensively to gain customer’s trusts and increase their credibility by paying attention on the accuracy of reservation and ticketing processes, and at the same time make improvement on flight on-time performances, minimize flight’s delay, avoid any flight cancelations, and improve performance on baggage handling.