THE ANALYSIS OF SERVICE QUALITY AND PRICE ON CUSTOMER SATISFACTION AND LOYALTY OF LUFTHANSA GERMAN AIRLINE INDONESIA PASSANGERS

Abstract

This research aims to test and analyze the influence of service quality and price in customer’s satisfaction and loyalty of Lufthansa German Airline Indonesia passengers. This research used primary data through questionnaire of 400 respondents. The respondents were passengers, who have been travelling with Lufthansa from/to Asia to/from Europe route more than one time. Statistical Product and Service Solution (SPSS) version 20.0 was used to analyze the data. The result on this research shown that service quality significantly influence customers satisfaction with price insignificant influence on customer satisfaction. Service quality and price also insignificantly influence loyalty. Customer satisfaction gives significant influence on customer loyalty which is mean that service quality indirectly influences loyalty through customer satisfaction. This is implies that when customer satisfy, they will have loyalty to Lufthansa German Airline. This research also shows that either the high or low price not has any influence on customer satisfaction or loyalty. This research recommends to Lufthansa German Airline to maintain a consistent service quality in order to influence the satisfaction of passengers and followed to be loyal.