The Effect of Service Quality and Brand Image in the Air Cargo Industry on Customer Satisfaction and Loyalty of PT Garuda Indonesia (Persero) Tbk

Abstract

Air cargo is the only business that survived during the pandemic of Covid-19 for airline company especially Garuda Indonesia. Most of the airline companies made a new strategy related to their cargo business by forming preighters or converting their planes completely into cargo planes which further increased the competition between airlines in Indonesia. Garuda Indonesia, as the dominator of the cargo market in Indonesia, both domestically and internationally, needs to maintain its business so that it is not replaced by other airlines. As a company engaged in the service sector of delivering goods from port-to-port, improving service quality is an important aspect to increase competitive advantage and brand image is a supporting factor in sales, so this research is aimed to see the effect of service quality and brand image on customer loyalty directly and indirectly with the mediation of customer satisfaction. This study was analysed by using SEM-PLS and IPMA methods to see the relationship between the variables. It contributes to both managerial and theoretical customer behaviour through empirical data research based on surveys distributed to 118 freight forwarders in the Jabodetabek region, who cooperate with Garuda Indonesia Cargo. Through this research, it was found that there is a need for service improvement in the form of safe payment transactions and promotional products that can increase customer loyalty.

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