Open AccessInfluence of Low-Cost Carrier Attributes towards Airline Choice Decision in Bandung-Surabaya Route
Author(s) -
Idham Idham,
Prawira Fajarindra Belgiawan,
Christina Ari Pramono Putri
Publication year - 2021
Publication title -
jurnal manajemen teknologi
Language(s) - English
Resource type - Journals
eISSN - 2089-7928
pISSN - 1412-1700
DOI - 10.12695/jmt.2021.20.1.6
Subject(s) - purchasing , business , ticket , low cost carrier , logit , indonesian , marketing , discrete choice , advertising , computer science , economics , econometrics , linguistics , philosophy , computer security
. The number of Indonesian domestic passengers which increased rapidly has encouraged for the airlines to expand their market share by opening routes in the local region and one of the promising region is Bandung. In early 2019, the Low-Cost Carrier has implemented paid baggage policy. The changes of airline conditions and regulations could affect consumer purchasing decisions. The airline have to redesign its strategies and conduct a strategy adjusment to identify the consumer's needs and wants these days. Based on the problem description, this research aims to identify what significant attributes influence passenger's purchasing decision-making and determine what elastic and inelastic attributes. Data collection using an online questionnaire then spread to 235 respondents and were analyzed with Mixed Logit Model using BIOGEME software. The results shows that airline's departure time is a significant attribute towards passenger's airline choice. Ticket price also plays a key role in selecting an airline for passengers when the ticket price increases, Passenger will consider choosing other alternative airlines that are more affordable. The results could be used by an airline company to attract the passenger by improving its marketing strategy. Keywords: Low-cost carrier, airline choice, airline attribute, mixed logit, demand elasticities