THE ROLE OF DIGITAL INNOVATION, PERCEIVED VALUE, AND LOYALTY PROGRAM ON CUSTOMER LOYALTY AT GARUDA INDONESIA

Abstract

Airlines business is a competitive industry, which pushes the airline company to make changes in its strategy to retain current customers or to get more customers. Garuda Indonesia as the flag carrier is also a Full-Service Carrier that operates among other Low-Cost Carrier in Indonesia. To win the competition with these Low-Cost Carriers, Garuda Indonesia has to make strategies in Digital Innovation, Perceived Value, and Loyalty Program. This study aims to analyze the effect of Digital Innovation, Perceived Value, and Loyalty Programs on customer satisfaction and trust that will impact on customer loyalty at PT Garuda Indonesia. Data is taken from the questionnaire answers of the respondents. The respondents are Garuda Indonesia passengers who fly international and domestic route and also a member of GarudaMiles (Loyalty Program of Garuda Indonesia). The results show Digital Innovation and Perceived Value have a significant impact on customer satisfaction and trust. While Loyalty Program has no significant impact on customer satisfaction and trust. The results of the study also show that customer satisfaction and trust had a significant impact on customer loyalty.