Determinants affecting trust, satisfaction, and loyalty: A case study of low-cost airlines in Indonesia

Abstract

A low-cost carrier is an airline that offers lower rates but at a lesser cost, sacrificing some convenience. This study aims to determine the effect of service quality and brand image on trust, satisfaction, and passenger loyalty to low-cost airlines in Indonesia. Primary data were collected through Google Forms and submitted via WhatsApp with the criteria of having previously used the services of Indonesian low-cost airlines. Of the 300 respondents who received the questionnaire, only 242 filled it out accurately. The data were analyzed with the help of the SmartPLS program and structural equation modeling. The findings show that service quality and brand image positively and significantly affect passenger trust, satisfaction, and loyalty (p < 0.05). Trust positively and significantly affects satisfaction (p < 0.05). Trust and satisfaction positively and significantly affect loyalty (p < 0.05). Service quality and brand image affect satisfaction through trust (p < 0.05). Service quality and brand image affect loyalty through satisfaction (p < 0.05), and trust affects loyalty through satisfaction (p < 0.05). AcknowledgmentsThe research funding for this study was provided by the Ministry of Education, Culture, Research and Technology of the Republic of Indonesia under the Basic Research for Higher Education Excellence (PDUPT) category in 2022. Additionally, gratitude is extended to the various levels of leadership at Universitas Muhammadiyah Sumatera Utara, including the leadership of the Faculty of Economics and Business and the personnel of the Institute for Research and Community Service (LPPM) at Universitas Muhammadiyah Sumatera Utara.

Keywords

• Indonesia
• low-cost carrier
• loyalty
• satisfaction
• SmartPLS
• trust