The Effect of Brand Awareness, Service Quality and Airline Pricing Policy on Consumer Preferences

Abstract

Recent changes in baggage fee policies and fluctuations in ticket prices on Low-Cost Carrier (LCC) airlines pose a challenge for airlines to sustain passenger loyalty within a highly competitive market. Existing research indicates conflicting findings regarding the impact of price adjustments and service quality on repeat purchase intentions. To address this empirical gap, this study investigates the effect of brand awareness, service quality, and airline pricing policy on Citilink's consumer preference at Hang Nadim Airport. Analyzing survey data from 103 passengers using Partial Least Squares Structural Equation Modeling (PLS-SEM), the validated model accounts for 63.1% of the variance in consumer preference. The results indicate that brand awareness, service quality, and airline pricing policy have a significant effect on consumer preference, with airline pricing policy being the predictor with the largest path coefficient. These findings are expected to be policy material for airlines in implementing low ticket price policies optimally.