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PRICE, SERVICE QUALITY AND CUSTOMER LOYALTY: A CASE OF AIR ASIA
Nadia Hanum Amiruddin
Faculty of Business & Entrepreneurship,
University Malaysia Kelantan, Kelantan
Email : nhanum@umk.edu.my , Tel : 0163350165
ABSTRACT
Nowadays, the market is getting competitive in all aspects of survival of the company. Companies especially in the service industry realize that in order to win the market, they need to explore new ways of approaching customers. Therefore, it is important for the company to foster customer loyalty. In this study, SERVQUAL or Gap Analysis Study has become an adapted model for the researcher in measuring the service quality in Air Asia. SERVQUAL measured tangibles, reliability, responsiveness, assurance and empathy. This research aimed to study the relationship between service quality and price towards customer loyalty in the Air Asia services. For this study, the survey method was used as instrument for collecting data. A mall intercept was the method of data collection used by researchers where passengers at the arrival and departure halls of LCCT were given the questionnaire. Based on this research, the result indicates that there are significant relationship between service quality towards customer loyalty and price towards customer loyalty. Based on the correlation analysis, it shows that between service quality and price, price is the most influencing factor that will affect customer loyalty. It can be concluded that, if Air
Asia remains as the low fares to the customers, the likeliness to increase the customer loyalty is high. However, it does not mean that the service quality is not important, but, price gives slightly higher influence that will lead to customer loyalty.
Keywords: Service Quality, SERVQUAL, Price, Customer Loyalty
INTRODUCTION
The research related to service quality and customer satisfaction in the airline

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