the impact of customer loyalty towards purchase …

THE IMPACT OF CUSTOMER LOYALTY TOWARDS PURCHASE

BEHAVIOR

A CASE STUDY OF AIRASIA INDONESIA

By

KUO TING YU

S11503042

BACHELOR’S DEGREE

in

BUSINESS ADMINISTRATION - HOTEL AND TOURISM MANAGEMENT

FACULTY OF BUSINESS AND COMMUNICATION

SWISS GERMAN UNIVERSITY

The Prominence Tower

Jalan Jalur Sutera Barat No. 15, Alam Sutera

Tangerang, Banten 15143 - Indonesia

JULY 2019

THE IMPACT OF CUSTOMER LOYALTY TOWARDS PURCHASE BEHAVIOR

A CASE STUDY OF AIRASIA INDONESIA of 83

KUO TING YU

STATEMENT BY THE AUTHER

I hereby declare that this submission is my own work, and to the best of my

knowledge, it contains no material previously published or written by another person,

nor material which to a substantial extent has been accepted for the award of any

other degree or diploma at any educational institution, except where due

acknowledgment is made in the thesis.

Kuo Ting Yu

_____________________________________________

Student

Date

Approved by:

Robert La Are, S.ST, M.Par

_____________________________________________

Thesis Advisor

Date

Dr. Nila K. Hidayat SE., MM.

____________________________________________

Dean

Date



KUO TING YU

ABSTRACT

THE IMPACT OF CUSTOMER LOYALTY PROGRAM TOWARDS PURCHASE

BEHAVIOR. A CASE STUDY OF AIRASIA INDONESIA.

By

Kuo Ting Yu

Robert La Are, S.ST, M.Par

SWISS GERMAN UNIVERSITY

The airline industry is considered as a promising sector in Indonesia. Due to the

increase of economic and national income, the number of passengers is increasing

year by year. AirAsia Indonesia is one of the well-known low-cost carriers in

Indonesia who has won many prestigious awards. However, the number of low-cost

carriers is also increasing, face a higher level of competition in the airline industry

makes the management realized that they need a strategy to enhance their customers’

purchase behavior. This study reports the impact of customer loyalty on purchase

behavior at AirAsia Indonesia. The questionnaire was completed by 132 respondents

who have ever fly with AirAsia Indonesia. Single linear regression was used to test

the impact of customer loyalty with two dimensions, which are attitudinal loyalty and

behavioral loyalty. The results show that customer loyalty has a strong impact

towards customers’ purchase behavior with the score of 83.8%. This study also

provides the company with several suggestions to gain better customers’ purchase

behavior.

Keywords: customer loyalty, low-cost carrier, airline industries, attitudinal loyalty,

behavioral loyalty, purchase behavior



KUO TING YU

© Copyright 2019

by Kuo Ting Yu

All rights reserved



KUO TING YU

DEDICATION

I dedicate this hard works for God, my family, Mr.Are, and the sake of my bachelor’s

degree. I sincerely wish this study can help improve future research regarding similar

topics.



KUO TING YU

ACKNOWLEDGMENT

First of all, I would like to express my sincerest thanks to God for giving me a

healthy, physically and condition, strength, and always be there to guide me.

Second, I am sincerely thankful for my parents and family. Thank you for being

supportive all the time. Thank you for supporting me both in moral and financial,

without your encouragement, help, pray, and love I would be unable to finish this

research.

Next, I would like to thank Mr. Are to be my thesis advisor. Thank you for your

presence, advice, guidance, knowledge, motivation, and timely suggestions. Thank

you for patiently teaching and guide me to finish this research. Also, to Ms. Jane from

the English department, thank you for helping me in checking my grammars and

citations, gave me a recommendation for the vocabularies, and all the feedback about

this study.

To all hotel and tourism management faculty’s lectures, thank you for all the

knowledge and help since semester one. Your knowledge and experience shared are

helpful for my thesis. Also to my friends, thank you for always be there to support

me, and here we are finally able to finish our research.

I would like to express my gratefulness to all the respondents who have helped me in

this research.

Last but not least, thank you for all the people who have not been mentioned above,

thank you for everything that you have done to me.



KUO TING YU

TABLE OF CONTENTS

STATEMENT BY THE AUTHER ............................................................................ 2

ABSTRACT .................................................................................................................. 3

DEDICATION.............................................................................................................. 5

ACKNOWLEDGMENT ............................................................................................. 6

CHAPTER 1 – INTRODUCTION ........................................................................... 12

1.1 Background ....................................................................................................... 12

1.2 Research Problem ............................................................................................. 14

1.3 Research Questions .......................................................................................... 15

1.4 Research Objectives ......................................................................................... 15

1.5 Scope and Limitation ....................................................................................... 15

1.6 Significance of the Study .................................................................................. 15

CHAPTER 2 LITERATURE REVIEW .................................................................. 16

2.1 Framework of Thinking ................................................................................... 16

2.2 Airline Industry ................................................................................................ 17

2.3 Current Airline Industry in Indonesia ........................................................... 18

2.4 Loyalty Program ............................................................................................... 20

2.4.1 Loyalty Program by Air Asia ..................................................................... 21

2.5 Purchase Behavior ............................................................................................ 22

2.6 Previous Studies ................................................................................................ 24

2.7 Study Differences .............................................................................................. 27

2.8 Hypothesis ......................................................................................................... 28

CHAPTER 3 – RESEARCH METHOD.................................................................. 29

3.1 Type of Study .................................................................................................... 29

3.2 Unit Analysis ..................................................................................................... 30

3.3 Population and Sampling ................................................................................. 30

3.3.1 Population ..................................................................................................... 30

3.3.2 Sampling ....................................................................................................... 30

3.3.3 Sampling Method ......................................................................................... 31

3.4 Type of Data Collection Method ..................................................................... 32

3.4.1 Primary Data ................................................................................................ 32

3.4.2 Secondary Data ............................................................................................ 32

3.5 Research Model ................................................................................................ 33

3.6 Variable Operationalization ............................................................................ 34



KUO TING YU

3.6.1 Independent Variable ....................................................................................... 34

3.6.2 Dependent Variable .......................................................................................... 36

3.7 Pre-test ............................................................................................................... 37

3.7.1 Validity .......................................................................................................... 37

3.7.2 Reliability ...................................................................................................... 37

3.8 Data Analysis Technique ................................................................................. 38

3.8.1 Single Regression ......................................................................................... 38

3.8.2 Normality Test ............................................................................................. 39

3.8.3 Heteroscedasticity Test ................................................................................ 39

3.8.4 Hypothesis Test ............................................................................................ 40

3.8.4.1 F-Test........................................................................................................ 40

CHAPTER 4 - RESULTS AND DISCUSSION ...................................................... 41

4.1 Company Profile – AirAsia Indonesia ............................................................ 41

4.2 Respondent Profile ........................................................................................... 43

4.2.1 Gender .......................................................................................................... 43

4.2.2 Age ................................................................................................................. 44

4.2.3 Educational Background ............................................................................. 45

4.2.4 Occupation .................................................................................................... 46

4.2.5 Monthly Income ........................................................................................... 47

4.2.6 Purpose of Travel ......................................................................................... 48

4.2.7 Big Loyalty ................................................................................................... 49

4.3 Validity and Reliability .................................................................................... 50

4.3.1 Validity Pre-Test Result .............................................................................. 50

4.3.2 Reliability Pre-Test Result .......................................................................... 50

4.3.3 Validity Post-Test Results ........................................................................... 51

4.3.4 Reliability Post-Test Results ....................................................................... 52

4.4 Classical Assumption Test ............................................................................... 53

4.4.1 Normality Test ............................................................................................. 53

4.4.2 Heteroscedasticity Test ................................................................................ 56

4.5 Single Linear Regression Test ......................................................................... 56

4.5.1 Single Regression ......................................................................................... 56

4.6 Hypothesis Test ................................................................................................. 57

4.6.1 F-Test ............................................................................................................ 57

4.6.2 T-Test ............................................................................................................ 58

4.6.3 R-Square Test ............................................................................................... 59



KUO TING YU

4.7 Cross Tabulation .............................................................................................. 60

4.7.1 Attitudinal Loyalty ...................................................................................... 60

4.7.2 Behavioral Loyalty ....................................................................................... 61

4.8 Descriptive Study .............................................................................................. 62

4.9 Discussion .......................................................................................................... 64

CHAPTER – 5 CONCLUSIONS AND RECOMMENDATIONS ........................ 66

5.1 CONCLUSION ................................................................................................. 66

5.1.1 Customer loyalty program impact the purchase behavior of AirAsia

Indonesia ..................................................................................................................... 66

5.2 Recommendation .............................................................................................. 67

5.2.1 Recommendation for AirAsia Indonesia ................................................... 67

5.2.2 Recommendation for Future Research or Students ................................. 69

GLOSSARY................................................................................................................ 70

ABBREVIATION ...................................................................................................... 71

REFERENCE ............................................................................................................. 72

APPENDICES ............................................................................................................ 77

CURRICULUM VITAE ............................................................................................ 81

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