THE REVITALIZATION OF BRAND IMAGE OF LOW COST AIRLINES: A Survey of Working People in Indonesia

By Hendy Febiansyah 014201000146

A skripsi presented to the Faculty of Business President University In partial fulfillment of the requirements for Bachelor Degree in Economics Major in Management

February 2014

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PANEL OF EXAMINERS APPROVAL SHEET

The Panel of Examiners declare that the skripsi entitled “The Revitalization of Brand Image of Low Cost Airlines : A Survey of Working People in Indonesia” that was submitted by Hendy Febiansyah majoring in management from Faculty of Business was assessed and approved to have passed the oral examination on January 27, 2014.

Ir. Erny E. Hutabarat, MBA Chair – Panel of Examiner

T. Manivasugen, MBA Examiner I

Suresh Kumar, ST., M.SI Examiner II

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THESIS ADVISER RECOMMENDATION LETTER

This thesis entitled “The Revitalization Factors of Brand Image of Low Cost Airlines : A Survey of Working People in Indonesia” prepared and submitted by Hendy Febiansyah in partial fulfillment of the requirements for degree of Bachelor in the Faculty of Business has been reviewed and found to have satisfied the requirements for thesis fit to be examined. I therefore recommend this thesis for oral defense.

Cikarang, Indonesia, February 7, 2014

Acknowledged by, Recommended by,

Vinsensius Jajat Kristanto SE., MM., MBA. Suresh Kumar, ST.,M.SI. Head, Management Study Program Advisor

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DECLARATION OF ORIGINALITY

I declare that this skripsi, entitled “The Revitalization Factors of Brand Image of Low Cost Airlines : A Survey of Working People in Indonesia” is to the best of my knowledge and belief, an original piece of work that has not been submitted, either in whole or in part to another university to obtain a degree.

Cikarang, Indonesia, February 7, 2014

Hendy Febiansyah

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ABSTRACT

This study explored factors which influencing the revitalization of brand image of low cost airlines in Indonesia that is perceived negatively by Indonesian people because of various incidents and accidents that often happen to low cost airline in Indonesia such as Air Asia, Citilink, Lion Air and Tigerair Mandala. While overall brand perceptions play so many important roles in influencing consumer perceptions of low cost airline in Indonesia. This study analyzed and argued brand revitalization is comprised of improvement of brand image. Warranty program, advertising communications, innovative product improvements, third- party appraisals, reliability aspects, tangible aspects are hypothesis to play role in revitalizing of brand image of low cost airline in Indonesia which plagued by negative perceptions. The sample of 300 respondents is consists of 45% of male and 55% of female respondents. This study method used both factor analysis and multiple regressions. According to the results, the revitalization brand image of low cost airline in Indonesia is positively influenced by warranty program, advertising communication, third-party appraisals and reliability aspects, which advertising communication is the most significance variable influencing toward the revitalization of brand image of low cost airlines in Indonesia.

Keywords: Brand Image, Revitalization, warranty programs, advertising communication, innovative product improvements, third-party appraisals, reliability aspects, tangible aspects, incident, accident.

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ACKNOWLEDGEMENT

“Namo Buddhaya, Namo Dhammaya, Namo Sanghaya” “Namo Sakyamuni Buddhaya, Namo Amitofo” “Namo Kwan She Im Phu Sa, Namo Ti Chang Wang Phu Sa” “Tadyata Om Gate Gate, Para Gate, Parasam Gate, Bodhi Svaha” “Sabbe Satta Bhavantu Sukhitata”

-Most Commonly Prayer of Buddhayana Traditional Buddhist Origin-

First of all, I would like to say thanks to my Great Parents, Buddha, Bodhistava- Mahasatva, great almighty deities, my good karma, and universe as I am able to finish this research effectively.

In this opportunity, I would like to also give my gratitude to these important people 1. Mr. Suresh Khumar, ST., M.SI, my great thesis adviser, thank you sir for everything. Thank you for your patience, guidance, suggestions, positive criticism, and support. Wish you all d best sir! May your family and you always be happy, healthy, wealthy, and live in prosperity. The last, good luck for your PH.D. God bless you and your family. 2. Mr. V. Jajat Kristanto, SE., MM., MBA., Mom Ir. Erny E. Hutabarat, MBA, Mr. T. Manivasugen, MBA, Mr. Bruno Rumyaru, MA., Mr. Irfan Z. Habsjah, MBA, CMA, Mr. Luhur Korsika B. Sc., MIB, Mr. Orlando, MBA., Mom Hernawati Wibawati Retno Wiratih, M. Sc. Thanks for everything over the past three and half years. 3. Billy Homario, Michael Thomas, Regina Jaya, Catherine Ria Cahyadi for becoming gorgeous friends of mine from the first year. Accept me for whom the way I am, accept my stupidity, my complicated mood and everything. A word of thank you is never enough to replace all memories we have been through beyond the time. Hope the best for you in d future.

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4. To Cocong-ers, Deby Jakal Dwijayanti, Imelly Pastika Sinaga, Novita Nurfitriyana. We have been in such „complicated‟ relationship from first semester until this last semester. Thanks for everything cocong-ers. Hope the best for all of you in d future. 5. To IB-ers, Rifka Christy Halim, M. Husni Yuliyanto, Kurniantio Dharmawan, Raynard Tantra, Gandri Pohan, Hendra, Josephine, Athalia Permatasari, Shintia Dewi, Elian Setiawan, Sally Maryanto, Harry Afriani Gepis, Tobias Eric Hengilus. Bro Bro, Sis Sis, I hope we can be graduated together, in the same time, on the same place. Thanks for being friendly friends of mine until today. Hope the best for all of you in d future. 6. To my seniors, William Wijaya and Andrea Saputra, thanks for always and never tired for advising and supporting me on my thesis and lecturing me in this past 3 and half years. Hope the best for all of you in d future. 7. To my KMBA friends, Rendy Sun, Hardi Lawindro, Theja Natanael. Feriko Tjhia, Weriyen Oktavia, Chintia Tjandra, Natalia, Chelia, Ade Stefanus, Silvia Lim, Airien, Rendy Yuan, and others. Thanks for being my family in this past 3 and half years. 8. To the fabulous and gorgeous friends of mine, Wisnu Setiawan, Lissa Yun, Nesia Lisa Pertiwi, Christin Widjaja, Rieka Wulandari, Rosyanti, Afryandi, Rendi Putra Tjhientoso, Ruth, Agustinus Wiharja, Kris Rasta, Sonario, Anthony Perkasa, Abdi, Banu, Natalia Lois. Thanks for sharing lots of fun in this past 3 and half years. 9. Last but not least to all my friends who I can‟t mention one by one. Hope the best for all of you

Cikarang, Indonesia, February 7, 2014

Hendy Febiansyah

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TABLE OF CONTENTS

THESIS ADVISOR RECOMMENDATION LETTER i DECLARATION OFORIGINALITY ii PANEL OF EXAMINERS APPROVAL SHEET iii ABSTRACT iv ACKNOWLEDMENT v TABLE OF CONTENTS vii LIST OF TABLES x LIST OF FIGURES xii I INTODUCTION 1 1.1 Research Background 1 1.2 Problem Identifications 4 1.3 Statement of Problems 6 1.4 Research Objective 6 1.5 Research of Limitation 6 1.6 Definitions of Terms 7 1.7 Significance of Study 8 1.6.1 The Researchers 8 1.6.2 The Low Cost Airlines 8 1.6.3 The Reader 8 1.6.4 President University 9 1.6.5 Future Researchers 9 II REVIEW OF LITERATURE 10 2.1 Theoretical Review 10 2.1.1 Brand 10 2.1.2 Brand Image 10 2.1.3 Brand Association 11 2.1.4 Brand Attitudes 11 2.1.5 Brand Revitalization 11 2.1.6 Warranty Program 12

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2.1.7 Innovative Product Improvements 12 2.1.8 Advertising Communications 13 2.1.9 Third-Party Appraisals 13 2.1.10 Perceived Quality 13 2.2 Previous Research 14 2.3 Theoretical Frameworks 19 2.4 Hypothesis 19 III RESEARCH METHODOLOGY 21 3.1 Research Design 21 3.2 Population and Sampling Design 21 3.3 Research Instruments 22 3.4 Reliability and Validity 27 3.4.1 Reliability 27 3.4.2 Validity 28 3.5 Data Collection Procedure 29 3.5.1 Primary Data 30 3.5.2 Secondary Data 30 3.6 Testing Hypothesis 30 3.6.1 Multiple Regressions 30 3.6.2 Classical Assumption Test 31 3.6.3 F Test 32 3.6.4 T Test 33 3.6.5 Coefficient of Determination Test 34 IV ANALYSIS OF DATA AND INTERPRETATION OF RESULTS 35 4.1 Company Profile 35 4.1.1 Air Asia 35 4.1.2 Lion Air 38 4.1.3 Tigerair Mandala 42 4.1.4 Citilink 43 4.2 Data Analysis 45 4.2.1 Factor Analysis 45

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4.2.2 Reliability Test 53 4.2.3 Descriptive Statistic 60 4.2.3.1 Respondent Profile 60 4.2.3.2 Variable Frequency 64 4.2.4 Classic Assumption Test 81 4.2.4.1 Normality Test 81 4.2.4.2 Heterocedascity Test 82 4.2.4.3 Multicollinearity Test 83 4.2.5 Testing the Hypothesis 84 4.2.5.1 F Test 84 4.2.5.2 T Test 85 4.2.5.3 Multiple Regressions Models 87 4.2.5.4 Measuring the Variability of Regressions Models 89 4.2.6 The New Frameworks 90 4.3 Interpretation of Results 90 V CONCLUSIONS AND RECOMMENDATIONS 94 5.1 Conclusion 94 5.2 Recommendations 95 5.2.1 Company 95 5.2.2 The Future Researchers 100 REFERENCES 101 APPENDICES 107 APPENDIX I QUESTIONNAIRE 108 APPENDIX II TOTAL VARIANCE EXPLAINED 112 APPENDIX III ROTATED COMPONENT MATRIX 113

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LIST OF TABLES

Table 1.1 Differences between Low Cost and Full Service Carriers 4 Table 2.1 Previous Research Data Analysis 14 Table 3.1 Illustration of Likert-Style Rating Scale Questionnaire 23 Table 3.2 Relative Grading System for Each Dimensions 23 Table 3.3 Variable Operation 24 Table 4.1 Air Asia Fleets 36 Table 4.2 Lion Air Fleets 39 Table 4.3 Tigerair Mandala Fleets 42 Table 4.4 Citilink Fleets 44 Table 4.5 Communalities Table 45 Table 4.6 Table of KMO and Barlett‟s Test 46 Table 4.7 Table Variance Experiences 47 Table 4.8 Table of KMO and Barlett‟s Test 47 Table 4.9 Total Variance Explained 48 Table 4.10 Communalities Table and Rotated Component Matrix Table 49 Table 4.11 Factor 1 Variables Operations 50 Table 4.12 Factor 2 Variables Operations 51 Table 4.13 Factor 3 Variables Operations 51 Table 4.14 Factor 4 Variables Operations 52 Table 4.15 Factor 5 Variables Operations 52 Table 4.16 Factor 6 Variables Operations 53 Table 4.17 Reliability Table of Advertising Communications (X1) Variable 54 Table 4.18 Item Total Statistic of Advertising Communications (X1) Variable 54 Table 4.19 Reliability Table of Warranty Programs (X2)

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Variable 55 Table 4.20 Item Total Statistic of Warranty Program (X2) Variable 55 Table 4.21 Reliability Table Innovative Product Improvement (X3) Variable 55 Table 4.22 Item Total Statistic of Innovative Product Improvement (X3) Variable 56 Table 4.23 Reliability Table of Innovative Product Improvement (X3) Variable after Removing x3.1 56 Table 4.24 Item Total Statistic of Innovative Product Improvement (X3) Variable after Removing x3.1 56 Table 4.25 Reliability Table of Reliability Aspects (X4) Variable 57 Table 4.26 Item Total Statistic of Reliability Aspects (X4) Variable 57 Table 4.27 Reliability Table of Reliability Aspects (X4) After Removing Statements x5.6 57 Table 4.28 Item Total Statistic of Reliability Aspects (X4) After Removing Statements x5.6 57 Table 4.29 Reliability Table of Third Party Appraisals (X5) Variable 58 Table 4.30 Item Total Statistic of Third Party Appraisals (X5) Variable 58 Table 4.31 Reliability Table of Tangible Aspects (X6) Variable 58 Table 4.32 Item Total Statistics of Tangible Aspects (X6) Variable 59 Table 4.33 Reliability Table of Brand Image Revitalization (Y) Variable 59 Table 4.34 Item Total Statistic of Brand Image Revitalization (Y) Variable 59 Table 4.35 Histogram Chart 81

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Table 4.36 P-P Plot Chart 82 Table 4.37 Scatterplot 83 Table 4.38 Coefficients 84 Table 4.39 F-Test Results – ANOVA 85 Table 4.40 T-Test – Significance Value 86 Table 4.41 Significance Table 88 Table 4.42 Coefficients – Standard Coefficients 88 Table 4.43 Model Summary 89

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LIST OF FIGURES

Figure 1.1 Domestic LCC Penetrations by Country in 2010 2 Figure 1.2 Indonesia Annual Domestic Traffic from 2005 to 2012 3 Figure 1.3 Positioning of Indonesia‟s Major Airline Brands 3

Figure 2.1 Theoretical Frameworks 19

Figure 4.1 Logo Air Asia 35

Figure 4.2 Logo Lion Air 38

Figure 4.3 Logo Tigerair Mandala 42

Figure 4.4 Logo Citilink 43

Figure 4.5 Demographic Views (Gender) 60

Figure 4.6 Demographic Views (Age) 60

Figure 4.7 Demographic Views (Education) 61

Figure 4.8 Demographic Views (Income Level per Month in

Million IDR) 62

Figure 4.9 Demographic Views (How Many Times of Low Cost

Airline Brands Have You Been Consumed) 62

Figure 4.10 Demographic Views (Which Airline Do You Fly

Most Frequently) 63

Figure 4.11 Demographic Views (How Often Do You Travel with

That Airline) 64

Figure 4.12 Advertising Communications (X1) on Air Asia

Indonesia 65

Figure 4.13 Advertising Communications (X1) on Citilink 66

Figure 4.14 Advertising Communications (X1) on Lion Air 66

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Figure 4.15 Advertising Communications (X1) on Tigerair

Mandala 67

Figure 4.16 Warranty Programs (X2) on Air Asia Indonesia 68

Figure 4.17 Warranty Programs (X2) on Citilink 69

Figure 4.18 Warranty Programs (X2) on Lion Air 69

Figure 4.19 Warranty Programs (X2) on Tigerair Mandala 70

Figure 4.20 Innovative Product Improvements (X3) on Air Asia

Indonesia 71

Figure 4.21 Innovative Product Improvements (X3) on Citilink 72

Figure 4.22 Innovative Product Improvements (X3) on Lion Air 72

Figure 4.23 Innovative Product Improvements (X3) on Tigerair

Mandala 73

Figure 4.24 Reliability Aspects (X4) on Air Asia Indonesia 74

Figure 4.25 Reliability Aspects (X4) on Citilink 74

Figure 4.26 Reliability Aspects (X4) on Lion Air 75

Figure 4.27 Reliability Aspects (X4) on Tigerair Mandala 75

Figure 4.28 Third Party Appraisal (X5) on Air Asia Indonesia 76

Figure 4.29 Third Party Appraisal (X5) on Citilink 77

Figure 4.30 Third Party Appraisal (X5) on Lion Air 77

Figure 4.31 Third Party Appraisal (X5) on Tigerair Mandala 78

Figure 4.32 Tangible Aspects (X6) on Air Asia Indonesia 79

Figure 4.33 Tangible Aspects (X6) on Citilink 79

Figure 4.34 Tangible Aspects (X6) on Lion Air 80

Figure 4.35 Tangible Aspects (X6) on Tigerair Mandala 80

Figure 4.36 The New Frameworks 90

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CHAPTER I

INTRODUCTION

1.1 Research Background

Transportation has a significant role in lot of kinds of economic activity; with the other words transportations is core of the economic (Nasution, 1999; Cobb, 2005). Great transportation system, communication and information technologies are needed by all countries in order to support the mobilization. The transportation development has strong relationship toward economy development in each country, so that the transportation is the promising field now and in the future.

Since the first commercial airlines began designing fare-paying passengers, Airlines managers and directors have sought so many ways to lower the cost of air travel (Cobb, 2005; Tretheway 2002). In the early 50 and 60‟s, the concept of “low cost” introduced by charter airlines, but unlike scheduled airlines, at this time the airline was responsibility to fill the number of seats (Doganis, 2005). This concepts were using until Boeing 747 “Jumbo Jet” acquired by most of the world‟s leading airlines in the early70‟s-80‟s which identified a significant fall in the cost of air travel in real terms (Turnbull, 1999; Cobb, 2005).

The first breakthrough of the new concepts of low cost model in the airlines was in 1978, when Southwest Airlines – today is the fifth largest airlines in the USA by the numbers of passengers, introducing the concept of “Low Cost, no frills” low fares to stimulate air travel (Bailey 2002; Blaha 2003).

The International Air Transport Association (IATA) stated that 17% of the world‟s air traffic now travels on a low cost airline (IATA, 2010). According to CAPA (2011), Indonesia has the 3rd least in terms of domestic LCC penetration in

1 the world but if the data Included Lion Air and Citilink Indonesia‟s domestic market LCC penetration would be close to 50%. Meanwhile in Europe, Ireland with the total value 79.3% is the highest rank in terms of domestic LCC penetration.

Figure 1.1 Domestic LCC Penetration by country in 2010

Source: CAPA (Centre for Asia Pacific Aviation)

Today Ryanair, a based Irish ultra-low cost airline is the largest airline in Europe carrying over 40 million passengers a year and has a market capitalization value higher than British Airways (Barret, 2009).

According to the analysis of CAPA (2013), the Indonesian domestic market growth is slower in 2013 despite the bankruptcy and suspension of operation of Indonesia‟s fourth largest airline, Batavia. But not for so long, the other LCC carriers, primary Mandala affiliated with Tiger Airways and Citilink, subsidized with Garuda Indonesia have been quickly filling the void spot which has caused by Batavia.

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Figure 1.2 Indonesia Annual Domestic Traffic from 2005 to 2012

Source: CAPA (Centre for Asia Pacific Aviation)

Figure 1.3 Positioning of Indonesia’s Major Airline Brands

Source: CAPA (Centre for Asia Pacific Aviation)

Through, Indonesia has not fully embraced the concept of LCC‟s although the market is a natural high growth LCC market. As Indonesia AirAsia, an international chained of Malaysia based airlines, has discovered that Indonesia is a unique and special market which presents challenges to the pure low cost model (CAPA, 2012). Lion and Citilink operate turboprop aircraft to compete in the

3 smaller markets. Same with AirAsia, by this year looked at adding smaller aircraft, which could help Indonesia AirAsia compete in smaller domestic markets (CAPA, 2012).

Table 1.1: Differences between Low Cost and Full Service Carriers Characteristic Low Cost Airlines Full Services Brand One Brand, Low Price Extended Brand : Price / Service Price Simple pricing structure Complex pricing structure Distribution Internet, direct booking Internet, direct and agent Checking in No ticket (usually) Ticket and no ticket Network Point-to-point Hub-and-spoke Classes One Class Multiple Class During flight No Frills Frills (free food and beverage) Aircraft Usage Very intensive Average – intensive Aircraft type One or few types Multiple types Turnaround times 25 minutes Slow Customer Service Generally underperforms Full Service Source : Hooloway (2008) and O‟Connell & William (2005)

1.2 Problem Identifications

According to Andrews and Kim, 2007, the incident and accident are the most serious causes that could ruin and give so many negative impacts to brand image of company especially Airline Company. For example on 10 January 2011, Hutapea (2011) reported Air Asia flight slide on the runway while landing. The incident happened around 10:15pm on the local time during a very heavy rain and because of this incident four passengers were rushed to Sarawak General Hospital. According to Baker (2011), on 5 September 2005, Mandala airline on Domestic flight crushed in Padang Bulan, Medan Indonesia. The accident happened on Medan – Jakarta flight and making only 16 people over 117 people

4 survived. This accident is one of five worst accidents that happened in Indonesia. Pemberontak (2013) and Antoni (2013) stated there was an incident on 6 April 2013, Citilink Boeing 737-300 crushed three runway lamps when landing in Bandara International Minangkabau (BIM) and made all the passengers got panic attaked. Sun (2013), reporting a Lion Air Boeing 737 lies submerged in the water after missing the runway during the landing at Bali‟s International Airport near Denpasar on April 14, 2013.

Accidents and incidents give so many bad impacts and bring huge negative effects towards brand image and it will take a long time to successfully regenerate it (Ewing et al., 2005). The situation will even get worse if the company fails to realize the truth of negative image issues in a wise manner (Lamons, 2004). The negative information can easily spread by media, internet and word of mouth (Weinberger, 2006). Brands either live or die. Changing of customers‟ trusty toward the company could bring „die‟ to them. But with well-understanding strategies, brands can be revitalized with new products and services or new “faces” (Venktesh, 2005).

Brand revitalization has to be differentiated from brand creation because brand revitalization focuses on changing of perceptions among consumers toward the company and involves on a changing position in the market meanwhile brand creation focused on creating brand image and selecting the market position which suitable for the new brand (Venktesh, 2005).

Keller (2004) emphasizes, the company needs to know what factors will possibly revitalize of customers‟ perceptions in order to retain customers‟ trusty and market share. According to Andrew and Kim (2007), there are four factors which influencing of brand revitalization and they are warranty program, advertising communication, innovative product/ service improvement and positive 3rd party appraisals. According to David and Robin (2003), customers‟ perceived has been becoming an important role in historical of airlines since consumer was the key element of revitalizing a brand. According to Parasuraman as cited in Ayding and

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Yildrim (2012), to know about that using five dimensional aspects by is the best way to know whether the airline service is good or not. The five dimensional aspects of Parasuraman are Tangible Aspects, Reliability Aspects, Responsiveness Aspects, Assurance Aspects and Empathy Aspects

1.3 Statement of Problem

The problem statements that are tested and evaluated in this study can be formulated in the form of questions as stated below: 1. To what extent do revitalization factors influence brand revitalization of low cost airline on Indonesian working people? 2. Which is the most significance revitalization factors influence brand revitalization of low cost airlines on Indonesian working people perceived?

1.4 Research Objective

The main objective of this research is to find out to what extent revitalization factors influence simultaneously toward to brand revitalization of low cost airlines in Indonesia passengers and to find out which is the most significance revitalization factors influence brand revitalization of low cost airlines on Indonesian working people perceived.

1.5 Research of Limitation

This study attempts to understand Indonesia Passengers‟ perception that utilizes low cost airlines in Indonesia at Soekarno Hatta International Airport of Jakarta. The respondents have to be in the range of age minimum 21 years old and expected to be those who have earn their own money under unemployment bond. The low cost airlines in this study focus on Air Asia, Lion Air, Mandala, and Citilink. The date of study was from 1st October 2013 – 15th January 2014.

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This study focus on the revitalization factors which consists of nine independent variables. They are warranty programs, innovative product/service improvements, third party appraisals, advertising communication, reliability aspects, tangible aspects, responsiveness aspects, empathy aspects and assurance aspects toward brand revitalization efforts in low cost airlines market in Indonesia

1.6 Definition of Terms

The definitions of terms that are relevant to the study are listed below: 1. LCC means Low Cost Carrier or Low Cost Airlines. 2. Local low cost airline brand means Lion Air and Citilink. 3. International-Chained low cost airline brand means Indonesia AirAsia and Tigerair Mandala Airways. 4. Passengers mean Indonesian working people who have flown and who are flying with LCCs. 5. Brand revitalization means process to revitalize a brand that this study chose brand image to be represented as brand revitalization. 6. Brand Image mean the brand image of low cost airline brand in Indonesia 7. Innovative product/ service improvements mean the innovation of product/service that improved by low cost airline company both local and international brands in Indonesia 8. Warranty programs mean the warranty that made by low cost airline company both local and international-chained brand in Indonesia 9. Third party appraisals means the positive appraisal from third party that regarding to low cost airline brands in Indonesia both local and international brand 10. Advertising communication means the advertising of low cost airline in Indonesia both local brand and international brand 11. Tangible aspects mean appearance of physical facilities equipment, personnel and communication material.

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12. Reliability Aspects means ability to perform the promise service dependably and accurately 13. Responsiveness aspects means willingness to help customers 14. Assurance aspects means knowledge and courtesy of employees and the ability to convey trust and confidence 15. Empathy aspects means caring, individualized attention the firm provides its customers

1.7 Significance of the Study

The researcher intends to give valuable and constructive contributions through this particular research in terms of information, knowledge and recommendations to the following parts: 1.7.1 The Researcher This study allows the researcher to deeply analyze the way of big aviation companies doing as well as to have the knowledge about factors that effect to brand revitalization of low cost airlines both International and Local in Indonesia passengers. As a student of International Business, the researcher would understand brand is very important to a company and differences of the way of international and local brand runs their company, especially in here is an aviation or airlines industry.

1.7.2 The LCC airlines This study is expected to provide the benefit to low cost airline company and/or any organizations that related to low cost airline company and hope this study can help to develop the strategy plan to indicate for brand revitalization as well as could be used as reference by both researchers and marketer alike.

1.7.3 The Reader This research is hoped to be useful of information and knowledge for the readers, especially for those who have interest in Airlines Industry. Nonetheless, this

8 research is not reserved only for certain groups, the researchers also hopes that this research could be used by any aspects that related to airlines industry especially low cost airlines industry.

1.7.4 President University This research is also expected to have contribution to President University. The researcher hopers that this research could be a literature in President University and a reference for student of President University, especially for those who are majoring in International Business.

1.7.5 Future Researchers The researcher hopes that this research could be an integrated reference for the future researches. This research could serve in the perspective of Airline Industry especially low cost airlines industry.

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CHAPTER II

REVIEW OF LITERATURE

2.1 Theoretical Review

2.1.1 Brand “A brand is a name, term, sign, symbol or design, or combination of them, intended to identify the goods and services of one seller or group of sellers and to differentiate them from those of competition” (Keller, 2008, p.7).

Pearson (2005) explained when the process of distinguished of the uniqueness and benefit of products and services done by marketing of the company and at the same time company is adding the value to them it is called a brand.

2.1.2 Brand Image The Company brand image is an important intangible foundation that is hard to be imitating by others and it can help an organization to best performance (Roberts and Dowling, 2002).

Erfan and Ling (2013) stated brand image as same as brand association is a brand which could bring the consumer‟s mind. So, brand image itself is representing of consumer‟s feelings and thought about the brand (Roy and Banerjee, 2007).

A common theory related to brand image is a health brand will give positive impacts on consumers‟ perceived such as to manage prices, loyal buyers and more positive verbal advertising (Orth and Green, 2009).

According to Hsieh and Li (2008), strong brand image will create great brand messages in the market over the competition brand. Consequently, customers‟ perceived will be affected and established by brand image (Burmann et al. 2008).

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Research conducted by Clotty et. al (2008) has proven a great significant and positive relationship between brand image and customer loyalty.

2.1.3 Brand Association Brand associations are another element of brand revitalization. It also plays an important role in consumers‟ perceived toward product and service (Van et al, 2003). According to Aaker (2002), brand association is an important degree to link anything between the brand and the mind of consumers.

Brand association is a foundation of Brand image. Thus brand image is an important mediator parts to enhance and develop positive brand revitalization (Keller, 2003).

2.1.4 Brand Attitudes Keller (2003) indicates that brand associations include brand attitudes. Brand attitudes are defined as evaluations of consumers toward the brand based on consumer behavior (Wilkie, 2006).

Brand attitudes related to beliefs of customers toward the functional, attributes, benefits and also great perceived quality of the products and services (Zeithmal, 2003; Rossiter and Percy, 2003). Manager should focus on designing, creating, and maintaining brand attitudes because it is as important as with brand associations (Faircloth et al., 2004)

2.1.5 Brand Revitalization Brand revitalization means a major overhaul of a brand. The processes are starting with checking the position of the brand itself and continuing through creative regeneration of brand identity.

There are a lot of factors needed to be concern by the company to survive in the market today example concern about changing of markets, economic, rules and regulations, lifestyles, , and technologies (Haig, 2003).

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Johnson and Peppas (2003) emphasizes, company needed to preserve, identify protect and prepare contingency plans for their brand image effectively toward the possibility of potential threats such bad issues, crisis, negative publicity etc. Keller et al. (2007) said if the threats had happened, the company needs to reposition their brand toward the marketing campaigns so that the company can avoid any damaged towards their brand images

Brand revitalization refers to the changing of negative appraisals to positive appraisal toward consumers‟ perception in all elements of the brands. Brand revitalization involves improvements in all elements of brand image, brand associations and brand attitudes (Andrews and Kim, 2007).

2.1.6 Warranty Program Warranty program is a program which company made to compensate the customers if failure occurred in product and service in the form of insurance work as a risk-sharing mechanism between consumers and the sellers (Heal 1977; Chu and Chintagunta, 2011).

Warranties may also affect a company to improve their product or service, at least to reduce the chances of possibility of failure may occur. This is because if a firm gives more attention to its quality improvement and it will reduce a firm‟s future warranty compensation and increase its profit (Priest 1981; Chu and Chintagunta, 2011).

2.1.7 Innovative Service Improvement Gallouj and Savona (2009) stated innovation in services may impact to one or more terms of service itself which often manifested as a changing in the company‟s competences, the customers‟ competences, and the prerequisites of the offering.

Service is a perspective which point at the value created by company and this is the key role in succeeding in service innovation (Edvardsson et al., 2005).

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Michael et al. (2008) emphasized the changing of the role of customer and processing of the value creation is the main point of innovative in service improvement. But sometimes the process of value creation is difficult to understand by customers, it is essential to collaborate with the communication process.

2.1.8 Advertising Communication Gruner and Homburg (2003) concluded intensive communication with customer is needed by company to success the revitalization of brand images. Bonner (2010) said to understand of customers‟ need during the revitalization process, communication using advertising is one of key role to understand it.

2.1.9 Third Party Appraisal Third party appraisals designed to give positive impact to the brand. It is used by customers to recapture some of the losses from diverse information (Huffman et al. 2004). People who are expert in this “third-party” could give positive impacts to brand association, attitudes and images by becoming a source of valid appraisals (Hovland et al., 1953; Andrews and Kim, 2007). But same with a coin, third party appraisals are not only can bring a good image to a company but also can harm a brand image depending on how the information is used.

2.1.10 Perceived Quality Cromin and Taylor as cited in Achana and Subha (2012), consumers perceive is important that why perceived quality is needed to know about customers‟ satisfaction. Customer satisfaction has become an important thing in airline operations (Ranaweera and Prabhu, 2003). This becomes critically important because for successful and profit business, having satisfied consumers are basic foundations and philosophy in the business (Shin and Elliot, 2004).

Ostrowski, et al., (2003) stated the first requirements of airlines business today in competitive pressure market are to create, provide and maintain good quality. Achana and Subha (2012) believe that it is difficult to know either the airline

13 service is good or not due to the heterogeneity of airlines and only customers can evaluate it. Parasuraman as cited in Aydin and Yildrim (2012), using five dimensional aspects of service quality is the best way to know about that. They are Tangible Aspects, Reliability Aspects, Responsiveness Aspects, Assurance Aspects and Empathy Aspects.

2.2 Previous Research

Table 2.1 Previous Research Data Analysis Authors Research Independent and Research Results Title Dependent Methodology Variable Aydin, K., Service x1. Tangibles Asking about Passengers‟ Yildrim, Quality in x2. Reliability Demographics expectations S. (2012) Airline x3. and perception Business : A Responsiveness The Questions were found to Research on x4. Assurance addressed in be close results THY x5. Empathy 5-Point Likert Y. Consumers‟ Scale to 120 Service quality respondents expectations and perceptions Using Convenience Sampling Method

Analyzed by SPSS 16.00 Alamgir, Influence of x1. Brand Equity Using Primary Brand name has M., Nasir, Brand Name x2. Brand Loyalty and Secondary strong influence T., on x3. Brand data. on purchase

14

Shamsudd Consumer x4. Awareness decisions oha, M., Decision Y. Perceived Asking about Nedelea, Making Quality Demographics. A. (2010) Process – Consumer An Decision Making Using simple Empirical and Purchase random Study on Intention sampling (100 Car Buyers respondents)

Descriptive Statistics were using in order to analyze the data of the research Keung, K. Effect of x1.Brand Qualitative Brand name has (2007) Brand Awareness Semi- strong influence Image on x2. Brand Loyalty Structured on purchase Consumer x3.Brand interviews decisions Purchasing Association used by the Behavior on x4.Perceived researcher to Clothing: Quality collect the Comparison Y. Consumer data. between Buying Decisions China and Non the UK‟s Probability Consumers Sampling was used in this research

The

15

combination both quota sampling and convenience was used in data collection

The research was analyzed using Within- Case and Cross-Case analysis Gilbert, Passenger X1. Reliability The research Service Quality D., Wong, Expectation X2. methodology has strong R., K., C. s and Responsiveness was used key influence (2002) Airline X3. Assurance purchased toward Service: a X4. Empathy criteria which Passenger‟s Hong Kong X5. Tangibles formulated by expectation Based Study Y. Passengers‟ mason to expectations utilize the toward service questionnaire quality (Y) by using secondary data

26 questions were constructed which spread to suitable 365 respondents

16

Using SPSS to test reliability, ANOVA and t- test Mahmud, The Effect X1. Tangibles Using Service Quality A., Jusoff, of Service X2. Empathy explanatory and Price are K., Quality and X3. Reliability study positive toward Hadijah Price on X4. Assurance Random customer (2013) Satisfaction X5. sampling was loyalty and Loyalty Responsiveness used to of Customer X6. Price determine the of Y. Customer respondents Commercial Loyalty Flight Service Industry Venteskh, Issues in X1. Corporate Using primary All strategies B. (2005) Brand Vision and and secondary need to Rejuvenatio Mission data. synergies n Strategies X2. Strategies together X3. Product Primary data Attributes collected by X4. Stake Holders survey via Y. Brand emails Rejuvenation Secondary data collected from journals, newspaper and websites.

17

Mustafa, The X1. Tangibility Primary data The four A. Pei, F., Evaluation X2. Reliability gathered by independent J., Peng, of Airline X3. Spreading 100 variables have L., S. Service Responsiveness questionnaire. strong influence Hamid, Quality X4. Assurance toward the H., A. Using the X5. Evaluating Secondary data quality of the (2005) Analytic Y. Airline Service gathered from airline Hierarchy Quality skytrax data Process which later converted to ranking system 1-9 scale in order to use the AHP methodology Andrews, Revitalizing X1. Warranty Asking about International M., Kim, Suffering Program Demographics Brand D. (2007) Multination X2. Innovative Revitalization is al Brands: Service The Questions positively an Improvements addressed in influenced by Empirical X3. Advertising 5-Point Likert product Study Communications Scale to 100 improvements, X4. Third-Party respondents warranty Appraisals programs and Y. International Using advertising Brand Convenience communication Revitalization Sampling Method and analyzed by SPSS 16.00

Constructed by Researcher

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2.3 Theoretical Framework Figure 2.1 Theoretical Framework

Source: Andrew and Kims (2007) & Aydin and Yildrim (2012) H5

2.4 Hypothesis

Independent Variables are Warranty Program (X1), Innovative service improvement (X2), Advertising communication (X3), Third party appraisal (X4), Tangible Aspects (X5), Reliability Aspects (X6), Responsiveness Aspects (X7), Assurance Aspects (X8), and Empathy Aspects (X9) have influence toward

19 dependent variable of Brand revitalization of brand images of low cost airline in Indonesia. Each independent variable will be significance toward the dependent variable. The Hypotheses are following:

 H1: Warranty program has influence on the Brand Revitalization of brand image of low cost airline in Indonesia

 H2: Innovative service improvement has influence on the Brand Revitalization of brand image of low cost airline in Indonesia

 H3: Advertising Communication has influence on the Brand Revitalization of brand image of low cost airline in Indonesia

 H4: Third party appraisal has influence on the Brand Revitalization of brand image of low cost airline in Indonesia

 H5: Tangible Aspects has influence on the Brand Revitalization of brand image of low cost airline in Indonesia

 H6: Reliability Aspects has influence on the Brand Revitalization of brand image of low cost airline in Indonesia

 H7: Responsiveness Aspects has influence on the Brand Revitalization of brand image of low cost airline in Indonesia

 H8: Assurance Aspects has influence on the Brand Revitalization of brand image of low cost airline in Indonesia

 H9: Empathy Aspects has influence on the Brand Revitalization of brand image of low cost airline in Indonesia

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CHAPTER III RESEARCH METHODOLOGY

3.1 Research Design

The type of research will be used in this study will be the quantitative research method. Quantitative method is often being used with aim to verify and prove existing theories or test hypothesis developed based from the previous research or study. According to Malhotra and Peterson (2010), quantitative research is an unstructured exploratory research methodology based on small samples that provide insights and understanding of the problem setting.

Quantitative research is a type of research which explaining phenomena by collecting some data, analyzed using mathematically-based methods and particularly statistics (Creswell, 2005). Cooper and Schindler (2006) implied, quantitative research provides precise measurement which often used to aims and verify also prove existing theories or to test hypothesis developed from previous study.

Questionnaire spread in many ways; first uploaded to the Google drive and distributed to people with the range of age minimum 21 years old through their email. The respondents are expected to be those who have earn their own money under unemployment bond. Second way was the researcher spread the questionnaire one by one to the people in Soekarno-Hatta International Airport

3.2 Population and Sampling Design

Sampling is the process of selecting some numbers from the population, to make it possible for the researcher to generalize such properties or characteristics to the

21 population elements (Sekaran and Bougie, 2011). Sampling design can be classified into two: probability and non-probability. Probability is the selection of sampling techniques in which the chance of each case being selected from the population is known and not zero meanwhile non-probability sampling is where the population to be selected is not known (Saunders, Lewis and Thornhill, 2009). According to Sekaran (2010), the determination of sample size number should be among 30 to 500 elements. Malhotra (2012) said the sample size is at least four to five times of variables researched. Then on the other research, an excellent research needed 1000 or more sample sizes, very good is 500, good is 300, fair is 200 and a poor research is 100 or less for its sample sizes (Zhao, 2009)

Considering of limited time, the researcher takes 300 respondents for its sample size in this research. The respondent must be Indonesians in range of age minimum 21 years old who has earn their own money under employment bond and who have been flying with International-chained or low cost airlines in Indonesia such as Air Asia, Tiger Mandala, Lion Air, and Citilink.

Margin of error is the percentage of allowance for no precision of error that occurs due to the use of sample instead of population. There are two level of percentage 0.01 and 0.5 percent. In this study, researcher used 0.05 percentage of margin, because of that the confidence level is 95%.

3.3 Research Instruments

The questionnaire is consisted of 30 questions which constructed from previous journals and researches. Overall, questionnaires are divided into two sections. Section A requires respondents to fill out a likert-scale questionnaire. Section B requires respondents to fill out their brief personal details.

In this research, there are five independent variables (X) and one dependent variable (Y) and every variable has few statements. Warranty Program has three

22 statements, advertising communications has six statements, innovative product improvement has four statements, third party appraisals has three statements, perceived quality with 5 dimensional aspects has eight statements and brand image has three statements.

Table 3.1 Illustration of Likert-style Rating Scale Questionnaire No. Statements SD D N A SA 1.

To measure this primary data, the researcher used Likert Scale which was developed by Rensis Likert because it is the most frequently used variation of the summed rating scale. The type of rating is agreement and there are five categories, strongly disagree (SD), disagree (D), neutral (N), agree (A) and strongly agree (SA).

Cooper and Schindler (2006) stated each response is given a numerical score to measure the participants overall. In this research, data is interpreted using five – Likert Scale Malhotra (2010) as the basic for the interpretation of the result of the compute data where the boundary of numerical and option includes:

Table 3.2 Relative Grading System for Each Dimension Response Category Rating Scale

Strongly Agree 5

Agree 4

Neither Agree nor Disagree (Neutral) 3

Disagree 2

Strongly Disagree 1

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Table 3.3 Variables Operation

STATEMENTS SD D N A SA Source Brand Image 4. I would prefer the product/ service of this low cost airline brand Andrews and Kim. more than I would before (2007). “Revitalizing suffering multinational 5. This low cost airline brands: an empirical brand has a stronger brand study.” International Marketing Review. Vol. image than it did before 24 No. 3. Pp. 350-372 6. The image of this low cost airline brand is more consistent than it once was Warranty Programs 7. This low cost airline brand offers an outstanding warranty (ex. Refund reasonable, fast Andrews and Kim. luggage claim, reasonable, (2007). “Revitalizing etc.) suffering multinational brands: an empirical 8. This low cost airline study.” International brand offers a very Marketing Review. Vol. 24 No. 3. Pp. 350-372 convenient repair or replacement service 9. I believe this low cost airline brand offers a comprehensive warranty Advertising Communications 10. I like the advertising of this low cost airline

24 brand

11. I react favorably to the advertising of this low cost airline brand

12. I feel positive toward Andrews and Kim. (2007). “Revitalizing the advertising of this low suffering multinational cost airline brand brands: an empirical study.” International 13. The advertising of this Marketing Review. Vol. low cost airline brand is 24 No. 3. Pp. 350-372 good 14. The advertising of this low cost airline brand does a good job 15. I am happy with the advertising of this low cost airline brand Innovative Product Improvements 16. This low cost airline brand is known for being innovative 17. This low cost airline brand frequently Andrews and Kim. introduces more (2007). “Revitalizing suffering multinational innovations than its brands: an empirical competitors study.” International Marketing Review. Vol. 18. I find this low cost 24 No. 3. Pp. 350-372 airline brand‟s innovations to be more delightful than its competitors 19. This low cost airline brand provides many

25 channel to buy the ticket Third-Party Appraisals 20. There has been any type of positive third party appraisal of the brand that you aware of (Consumer magazines, news reports, Andrews and Kim. etc.) (2007). “Revitalizing suffering multinational 21. I react favorably to the brands: an empirical positive third-party study.” International Marketing Review. Vol. appraisal of this low cost 24 No. 3. Pp. 350-372 airline brand 22. The positive third- party appraisal made me want to try this low cost airline 5 Dimensional Aspects 23. The airline has modern looking equipment 24. The airline has good physical facilities

25. The airline and crews Aydin, K., Yildrim, S. have sincere interest in (2012). “Service Quality in Airline solving customer‟s Business: A Research problem on THY.” Journal of Social Science. Vol. 24. 26. The airline provides Pp. 55-49 the service at the time of promised 27. The airline insists on error free records 28. Crews will give

26 prompt service to customer 29. The behavior of crews will give confidence in customers 30. Customers will feel safe in transactions Source: Self-Developed After In order to get the data to test the hypothesis, the process of collecting the information will be done through online questionnaire and print out questionnaire spread one by one to the people who are flying and who have been flying with Low cost airline in Indonesia.

The feedbacks were finally analyzed by using factor analysis and multiple regression methods. Factor analysis is a method of data reduction. It does by seeking latent variables which were reflected in the observed variables. Multiple regressions are applied on the study to explore the relationship among the variables. By using the quantitative research, data can be measured easily and it enables the researches to work with larger amount of samples (UCLA, 2013).

All of the quantitative data were analyzed using the statistical packages for social science (SPSS). SPSS 16.0 was used to conduct and calculate the data. It is commonly utilized by researcher to quantitatively examine the data obtained from questionnaire distribution. It‟s helpful to investigate statistical data such as factor analysis, validity, reliability, linear regression, multiple regression, etc.

3.4 Reliability and Validity

3.4.1 Reliability Refers to Cooper and Schindler (2006, pp. 352) “Reliability is a characteristic of measurement concerned with accuracy, precision and consistency.”

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Reliability test used to show how far the measurement result is relatively consistent if the measurement is re-done for twice or more. Reliability test is an index to show the degree of trust and reliability of the instrument, which in this research is questionnaire. In conducting this research, the researcher was used Cronbach‟s Alpha to test the reliability the data.

According to Lind, Marchal & Mason (2002):

̅

( ) ̅

Where: α = instrument reliability‟s coefficient r = mean correlation coefficient between variables N = number of questions

According to Malhotra (2010) to achieve the moderate scale reliability, the alpha value of all items indicated the reliability statistics has to exceed 0.60. The variable will be categorize as unreliable if the Cronbach‟s alpha of that certain variable is less than 0.60

3.4.2 Validity The validity test show how far the questionnaire able to measure what the researcher want to measure in this study. The validity test help the researcher to ensure that each of question that asked in the questionnaire is the right and appropriate question which each of question able to measure what the researcher want to measure.

The communalities values is the main concern of decision whether statements are valid or not. Because communality is the amount of variance which a variable shares all other variables included in factor analysis. The value ranges from 0 to

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1. The bigger, the better, this means the variables can be explained more by the factor formed but the value at least 0.5 if lower than that, the variables considered invalid and must be removed.

After that, the researcher must consider of KMO and Barlett‟s test. KMO value must bigger than 0.5 for the satisfactory; to know is the factor analysis is in a positive or negative value. Barletts‟s test is an indication of the relationship among variables and to determine whether variables are correlated or not and the value must be below 0.05 (Malhotra, 2012). Then, Rotated component matrix is the next step to acquire as simpler factor structure. The idea of rotation is to reduce the number factors on which the variables under investigation have high loadings. The rotation will not change anything but makes the interpretations of analysis easier.

Checked convergent and divergent validity is the last but not least important steps in this research. Convergent validity helps researcher to construct validity when researcher used two different measurement ways and research methods to collect the data. Divergent validity is the next and important step after convergent validity because this step leads the researcher to know whether operational definition for a construct actually measures more than one construct (Laerd, 2012)

3.5 Data Collection Procedure

In this study the researcher use two types of data to collect the information. Those are primary and secondary data. Primary data is the data which consists all the information that researcher needs for conduct the study by spreading questionnaire.

Meanwhile, secondary data is the information gathered and collected by the researcher from available sources that are related to the study such as internet, books, journals, or any other resources that can be used for this study. Data

29 collection is very crucial to create valid, reliable, and accurate data which to be conducted in the right and proper way. The method of the data collection is consisting of:

3.5.1. Primary Data Donald (2005) explained that the researcher must go directly to the source of information collect the data. Primary data is very important to this research because the data that is collected directly from information source.

Peterson (2010) argued that primary data is the data originated by the researcher for a specific purpose of addressing the research problem. The way to get the data is by using survey which the questionnaire distributed and spread to qualified respondent.

3.5.2. Secondary Data According to Malhotra and Peterson (2012) secondary data is “data collected for some purpose other than the problem at had”. The researcher decided to retrieve the data from journals, internet, books, etc.

3.6 Testing Hypothesis

3.6.1 Multiple Regressions In this study, the researcher uses multiple regression tools to conduct the research. According to Render Stair, Hanna (2009), multiple regression models is a practical extension of simple regression in which it allow user to build a model with several independent variable

Y= βo + β1X1 + β2X2 + β3X3 + β4X4 + β5X5 + β6X6 + β7X7 + β8X8 +

β9X9 + ε Where: Y = The Revitalization of Brand Image (dependent variable)

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β0 = Y intercept β1 – β 6 = Regression Coefficient X1 = Warranty Program (independent variable) X2 = Innovative Service Improvement (Independent Variable) X3 = Advertising Communication (Independent Variable) X4 = Third Party Appraisal (Independent Variable) X5 = Tangible Aspects (Independent Variable) X6 = Reliability Aspects (Independent Variable) X7 = Responsiveness Aspects (Independent Variable) X8 = Assurance Aspects (Independent Variable) X9 = Empathy Aspects (Independent Variable) ε = Random Error

3.6.2 Classical Assumption Test Classical assumption is the statistical requirements that must be met in multiple linear regression analysis (hellomgz.blogspot.com, 2013). In order to use multiple regression models, classic assumption test need to implement such as normality testing, heteroscedascity testing and multicollinearity.

1. Normality Test This test is used for determined whether the data is well set by normal distribution or to compute how an unlikely random variable is to be normally distributed (UCLA, 2013). In this research, the researcher will use the graphic in the normality test. Among of types in descriptive plots, the researcher will use histogram in which the researcher just needs to see whether the data is normal or not. Theory driven plot consist of P-P plot and Q-Q plot

2. Heteroscedascity Test Generates chart patterns point spread (scatterplot). In a multiple regression equation, it is needed to be tested for the same or not the variance of the residuals of the observations with other observations. If the residuals have the same variance, it is called homoscedascity. And if the residuals have the difference

31 variance, it is called heteroscedascity (dawaisimfoni.wordpress.com, 2013). Multiple regressions equation is good if there is no heteroscedasticity.

3. Multicollinearity Test Multicollinearity test is a test that used to know or detect whether any independent variable that correlated strongly to each other‟s in the multiple regression models. Multicollinearity is situation that researcher have to avoid because it will not good for independent variable correlated strongly to each other (dawaisimfoni.wordpress.com, 2013). In this test, the researcher has to see VIF value within this formula

And

Where:

= the value obtained by regressing the kth predictor on the remaining predictors. SSR = Regression sum of squares SST = Total sum of squares

If VIF value of one of variable is around or greater than 10, it means that there is collinearity occurs in that variable. And if there are two variables has the same situations, it means both of them has strong correlation and needs top eliminated from multiple regression

3.6.3 F Test F test is used to determine whether there is a significant relationship between independent variables and dependent variable. F test works by statistically test the null hypothesis that there is no linear relationship between independent variable and dependent variable. In below showed f test formula that used in this research:

⁄

( )⁄( )

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Where:

F = statistic test for F distribution R2 = coefficient of determination k = number of independent variables in the model n = number of sample

The level of significance that used in this research is α = 0.05. Ho is accepted if the f test value is greater than the level of significance α = 0.05 and Ho is rejected if the f test value is less than the level of significance α = 0.05.

Ho: β1 = β2 = β3 = β4 = β5 = 0, if significant F > 0.05, accept H0

Ha: at least there is one β ≠ 0, if significant F < 0.05, reject H0

In this research the hypotheses are as follow:

Ho: Warranty programs, advertising communications, innovative product improvements, third-party appraisals, and perceived quality have no influence on the revitalization of brand image of low cost airline in Indonesia.

Ha: Warranty programs, advertising communications, innovative product improvements, third-party appraisals, and perceived quality have influence on the revitalization of brand image of low cost airline in Indonesia.

3.6.4 T test T test is used to determine the partial relationship of each independent variable toward dependent variable. The level of significance α is 0.05. Ho is rejected if t test value lower than α = 0.05 and Ho is accepted if t test value greater than α = 0.05.

Ho: βi = 0, if significant T > 0.05, accept Ho i = 1,2,3,4,5,6,7.

Ha: βi ≠ 0, if significant T < 0.05, reject Ho

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In this research, the hypotheses will be as follow:

(Ho1): Warranty programs, advertising communications, innovative product improvements, third-party appraisals, and perceived quality have no influence on the revitalization of brand image of low cost airline in Indonesia.

(Ha1): Warranty programs, advertising communications, innovative product improvements, third-party appraisals, and perceived quality partially has influence on the revitalization of brand image of low cost airline in Indonesia

3.6.5 Coefficient of Determination Test (Adjusted R Square) The coefficient of determination test is used in this research in order to know about the correlation of independent variables toward the dependent variable and also to know how far the dependent variable is can be explained by independent variables (UCLA, 2013). The value of adjusted R square is range from 0 till 1. If the value of adjusted R square is close to 0, means that the capability of independent variables to explain the dependent variable is weak. In the other side if the value of adjusted R square is close to 1, means that the capability of independent variable to explain the dependent variable in this research is strong.

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CHAPTER IV

ANALYSIS OF DATA AND INTERPRETATION

OF RESULTS

4.1 Company Profile

4.1.1 Air Asia

Air Asia is a Malaysian low cost airline headquarters in Kuala Lumpur, Malaysia, started operation on November 18, 1996 under Malaysian government managing. Purchased at late 2001 by former Time Warner executive, Tony Fernandes were the one who helped Air Asia from their destruction because of having heavily indebted, Air Asia grew from two planes in 2002 to a fleet of 132 aircrafts flying 30 Million people around the world and named as the world‟s best low cost- airline and a pioneer of low cost-carrier in Asia.

Figure 4.1 Logo Air Asia

Source: www.airasia.com

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Air Asia with the slogan „Now Everyone Can Fly‟ which main operates on Kuala Lumpur International Airport, has total revenue on 2012 RM 5.0 billion/US$ and net income RM 1.88 billion/US$. To expand and strengthen their market share, Air Asia has total 8 subsidiaries which are Air Asia x operating to service Long Haul Destinations, Thai Air Asia based on Bangkok - Don Meuang International Airport, Indonesia Air Asia based on Jakarta – Soekarno Hatta International Airport, Philippines Air Asia based on Pampanga – Clark International Airport, Air Asia Japan based on Narita International Airport, Air Asia India based on Chennai International Airport and the last Air Asia Zest based on Ninoy Aquino International Airport.

The Data of total Air Asia fleet excluding Air Asia x Consist of the following

Table 4.1 Air Asia Fleets

Aircraft In Orders Passengers Aircraft are distributed Fleet Airbus A319- 1 0 144 Air Asia Zest (1) 100 Airbus A320- 131 88 180 Air Asia (66) 200 Thai Air Asia (34) Indonesia Air Asia (29) Air Asia Zest (10) Philippines Air Asia (3) Airbus 0 264 180 Entering Service in 2016 A320neo Total 132 352 Source: www.airasia.com

4.1.1.1 Indonesia Air Asia

Indonesia Air Asia, first named Awair founded on December 2004, is a low cost airline based in Jakarta, Indonesia. It operates scheduled domestic, international services and is Indonesian Associate carrier of Malaysian low-fare airline, Air

36

Asia which has a 49% share of ownership because Indonesian laws disallow majority foreign ownership on domestic civil aviation operations. Indonesia Air Asia is listed by Indonesian Civil Aviation Authority for the best airline for its safety quality.

For domestic flight, Indonesia Air Asia operates from terminal 3 meanwhile for International flight; it operates from terminal 2D on Soekarno Hatta International Airport.

List of Domestic Destinations in Indonesia

 Java Island  Jakarta – Soekarno Hatta International Airport  Bandung – Husein Sastranegara International Airport  Semarang – Achmad Yani International Airport  Surabaya – Juanda International Airport  Yogyakarta – Adisucipto International Airport

 Sumatra Island  Medan – Kuala Namu International Airport  Pekanbaru – Sultan Syarif Kasim II Airport

 Other Island  Denpasar Bali – Ngurah Rai International Airport  Makassar – Sultan Hasanuddin International Airport

List of International Destinations

 Australia  Perth – Perth International Airport  Darwin – Darwin International Airport

 Malaysia  Johor Baru – Senai International Airport

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 Kuala Lumpur – Kuala Lumpur International Airport  Penang – Penang International Airport  Kota Kinibalu – Kota Kinibalu International Airport

 Singapore  Singapore – Changi International Airport

 Thailand  Bangkok – Don Mueang International Airport  Phuket – Phuket International Airport

4.1.2 Lion Air

Lion Air under managing of Rusdi Kirana as CEO and operations of PT Lion Mentari Airlines, commenced operations on 30 June 2000 which is Indonesia‟s largest privately run airline with the largest share of domestic market with around 40% of market share in Indonesia‟s air industry (Lion Air. www.indonesia- investments.com, 2013)

Figure 4.2 Lion Air Logo

Source: www.lionair.com

Lion Air made global headlines when in November 2011, it ordered 230 aircrafts (201 737MAX aircrafts and 29 737-900ER) from boeing for the price of USD $21.7 billion. In March 2013, Lion Air ordered a record-breaking 234 airplanes

38 from France-based airbus for a combined price 18.4 billion euro (USD $24 billion). Through these record breaking purchases, Lion Air is well prepared to maintain or even improve it domestic market share and to take advantage of Asia Pacific‟s promising aviation sector (Lion Air orders lion’s share, www.newairplane.com , 2013)

Table 4.2 Lion Air Fleet

Aircraft In Fleet Orders Passengers Notes Airbus A320- - 60 180 - 200 Airbus - 109 180 - A320neo Airbus - 65 TBA - A321neo Boeing 737- 2 - 149 To be Retired 300 Boeing 737- 5 - 168 Exit service in 400 2017 Boeing 737- 20 16 189 Orders 800 Converted from 900ER Boeing 737- 68 91 213 Launch 900ER Customer Boeing 737 - 201 TBA - MAX 9 Boeing 747- 2 - 496 - 400 Total 97 541 Source: www.lionair.com

Lion Air currently serves more than 60 destinations domestic and international flights

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Domestic Flight

 Indonesia  Ambon – Pattimura Airport  Balikpapan – Sultan Aji Muhammad Sulaiman (SAMS) Airport  Banda Aceh – Sultan Iskandarmuda Airport  Bandar Lampung – Redin Intan II Airport  Bandung – Husein Sastranegara International Airport  Banjarmasin – Syamsudin Noor Airport  Batam – Hang NAdim Airport  Bengkulu – Fatmawati Soekarno Airport  Berau – Berau International Airport  Denpasar – Ngurah Rai International Airport  Gorontalo – Jalaluddin Airport  Jakarta – Soekarno HAtta International Airport  Jambi – Sultan Thaha Airport  Jayapura – Sentani Airport  Kendari – Wolter Monginsi Airport  Kupang – El Tari Airport  Lombok – Lombok International Aiport  Luwuk – Syukuran Aminuddin Amir Airport  Makassar – Hassanuddin International Airport  Malang – Abdul Rachman Saleh Airport  Manado – Sam Ratulangi Airport  Manokwari – Rendani Airport  Maumere – Wai Oti Airport  Medan – Kuala NAmu International Airport  Merauke – Mopah Airport  Padang – Minangkabau International Airport  Palangkaraya – Tjilik Riwut Airport  Palembang – Sultan Mahmud BAdarudding II Airport

40

 Palu – Mutiara Airport  Pangkal Pinang – Pangkal Pinang Airport  Pekanbaru – Sultan Syarif Qasim II International Airport  Pontianak – Supadio Airport  Semarang – Achmad Yani International Airport  Solo – Adisumarmo International Airport  Sorong – Soronmg Aiport  Surabaya – Juanda International Airport  Tanjung Pandan – Buluh Tumbang Airport  Tanjung Pinang – Raja Haji Fisabilillah Airport  Tarakan – Juwata Airport  Ternate – Babullah Airport  Waingapu – Mau Hau Airport  Yogyakarta – Adisucipto International Airport

International Flight

 East Timor  Dili – President Nicolau Lobato International Airport

 Malaysia  Kuala Lumpurt – Kuala Lumpur International Airport  Penang – Penang International Airport

 Phillipines  Davao – Davao International Airport

 Thailand  Bangkok – Suvarnabhumi Airport

 Vietnam  Hanoi – Noi Bai International Airport

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 Ho Chi Minh City – Tan Son Nhat International Airport

 Saudi Arabia  Jeddah – King Abdulaziz International Airport (seasonal)

4.1.3 Tigerair Mandala

Tigerair Mandala is a low cost airline headquatered in Jakarta, Indonesia which associated woth Singaporean Airnline Group, Tigerair Group. The former full service airline, Mandala, transformed itself as a low cost airline in 2011 caused by debt woes. Mandala resumed it operation on April 2012 because of an injection of fresh capital by Indonesian conglomerate Saratoga Investment Corp. which took over 51% of the airline, with partner Tigerair taking up 33.3% and the rest by creditors.

Figure 4.3 Tigerair Mandala Logo

Source: www.tigerair.com

All Tigerair Mandala‟s aircraft are being maintained under Singapore Airlines Enginerring Company (SIAEC). As one of Indonesian airlines which is not listed under EU ban, Tigerair Mandala applies one of the highest safety standard and maintenance. It plans to increase its fleet to 15 aircraft by end 2013 and to 25 by 2015

As of June 2013, the Tigerair Mandala fleet consists of the following aircraft with and average age of 0.8 years

Table 4.3 Tigerair Mandala Fleet

Aircraft Total Orders Passenger Seats Airbus A320-200 9 16 180 Source: www.tigerair.com

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Tigerair Mandala consists of 7 domestic destinations and several international flights:

 Indonesia  Jakarta – Soekarno Hatta International Airport  Bali – Ngurah Rai International Airport  Surabaya – Juanda International Airport  Yogyakarta – Adisucipto International Airport  Medan – Kuala Namu International Airport  Palembang – Sultan Mahmuds Badaruddin II International Airport  Pekanbaru – Sultan Syarif Kasim II International Airport

 International Flight  Hong Kong – Hong Kong International Airport  Malaysia – Kuala Lumpur International Airport  Singapore – Singapore International Airport  Thailand – Suvarnabhumi International Airport

4.1.4 Citilink

Citilink is a low cost airline headquartered in Jakarta, Indonesia established in 2001 as a low cost subsidiary of Garuda Indonesia. Since July 30, 2012 Citilink has officially operated as a separate business from Garuda Indonesia and operating 14 fleets.

Figure 4.4 Citilink Logo

Source: www.citilink.com

As April 2013, Citilink serves 21 domestic destinations

 Indonesia  Bali – Ngurah Rai International Airport

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 Bandung – Husein Sastranegara International Airport  Jakarta – Soekarno Hatta International Airport  Lombok – Lombok International Airport  Malang – Abdul Rachman Saleh Airport  Semarang – Achmad Yani International Airport  Surakarta/Solo – Adisumarmo International Airport  Surabaya – Juanda International Airport  Yogyakarta – Adisucipto International Airport  Batam – Hang Nadim International Airport  Bengkulu - Fatmawati Soekarno Airport  Jambi – Sultan Thaha Airport  Medan – Kuala Namu International Airport  Padang – Minagkabau International Airport  Pangkal Pinang – Depati Amir Airport  Palembang – Sultan Mahmud Badaruddin II Airport  Pekanbaru – Sultan Syarif KAsim II International Airport  Tanjung Pandan – Buluh Tumbang Airport  Balikpapan – Sepinggan International Airport  Banjarmasin – Syamsudin Noor Airport  Makassar – Sultan Hasanuddin International Airport  Ambon – Pattimura Airport

Table 4.4 Citilink Fleet

Aircraft In Fleet Order Passengers Notes Airbus - 35 TBA Planned 2017 A320neo

Airbus A320- 24 25 180 Planned 2014 200

Total 24 75 Source: www.citilink.com

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4.2 Data Analysis

4.2.1 Factor Analysis

Table 4.5 Communalities Table

Communalities

Initial Extraction

x1.1 1.000 .727

x1.2 1.000 .773

x1.3 1.000 .745

x2.1 1.000 .494

x2.2 1.000 .683

x2.3 1.000 .582

x2.4 1.000 .617

x2.5 1.000 .653

x2.6 1.000 .616

x3.1 1.000 .776

x3.2 1.000 .752

x3.3 1.000 .715

x3.4 1.000 .622

x4.1 1.000 .656

x4.2 1.000 .702

x4.3 1.000 .798

x5.1 1.000 .727

x5.2 1.000 .754

x5.3 1.000 .644

x5.4 1.000 .667

x5.5 1.000 .671

x5.6 1.000 .611

x5.7 1.000 .498

x5.8 1.000 .680

Extraction Method: Principal Component Analysis. Source: SPSS 16.0 and Self-Developed Primary Data

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In this factor analysis, the communalities extraction value is the most important things of all that must be the main concern of the decision whether the statements or variables are valid or not. Valid statements are those with communality values of at least 0.5.

If communality value values fail to reach 0.5, statements will be considered invalid and must be eliminated. Beside of Communalities extraction table, researcher must considered KMO and Barlett‟s test table and Rotated Component Matrix.

From table 4.5, there are two statements have extraction value lower than 0.5, X2.1 has extraction value 0.494 and X5.7 has extraction value 0.498. Researcher considered both of them as invalid and has to be removed from the research

4.6 Table of KMO and Barlett’s Test

KMO and Bartlett's Test

Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .799

Bartlett's Test of Sphericity Approx. Chi-Square 3.088E3

Df 276

Sig. .000

Source: SPSS 16.0 and Self-Developed Primary Data

From table 4.6, KMO and Barlett‟s test is conducted with the value 0.799 (greater than 0.5) which indicates factor analysis accepts that. Barletts‟s test of Sphericity examines the null hypothesis t which in this research is that all factors do not play role on the revitalization factor of brand image of low cost airlines in Indonesia. The result of Barlett‟s Test of Sphericity on the table 4.6 below has shown a significance value 0.000, which is less than 0.05. Therefore, the null hypothesis is rejected and factor analysis can still be continued.

After checking the value of communalities table and Keiser Meyer Olkin Measure, in the factor analysis, the researcher needs to check the value of rotation Sums of Squared loadings factors.

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Table 4.7 Total Variance Experiences

Rotation Sums of Squared Loadings Component Total % of Variance Cumulative % 1 3341 13919 13919 2 2941 12253 26173 3 2352 9798 35971 4 2297 9571 45542 5 2037 8489 54031 6 1988 8282 62313 7 1203 5011 67324 Source: SPSS 16.0 and Self-Developed Primary Data

After did some analyzing and removing few statements, the researcher got the best results for this research.

Table 4.8 Table of KMO and Barlett’s Test

KMO and Bartlett’s Test

Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .772

Bartlett‟s Test of Sphericity Approx. Chi-Square 2.308E3

Df 171

Sig. .000 Source: SPSS 16.0 and Self-Developed Primary Data

From table 4.8, KMO and Barlett‟s test is conducted with the value 0.772 (greater than 0.5) which indicates factor analysis accepts that. Barletts‟s test of Sphericity examines the null hypothesis t which in this research is that all factors do not play role on the revitalization factor of brand image of low cost airlines in Indonesia.

The result of Barlett‟s Test of Sphericity on the table 4.8 below has shown a significance value 0.000, which is less than 0.05. Therefore, the null hypothesis is rejected and factor analysis can still be continued

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Table 4.9 Total Variance Explained

Rotation Sums of Squared Loadings Component Total % of Variance Cumulative % 1 2.961 15.585 15.585 2 2.286 12.034 27.618 3 2.120 11.158 38.777 4 2.010 10.579 49.356 5 1.958 10.305 59.660 6 1.888 9.938 69.598 Source: SPSS 16.0 and Self-Developed Primary Data

Total variance explained shows all factors which are extractable from the analysis along with their eigenvalues. In this research, total variance explained shows how strong new factors formed contribute to the revitalization of brand image of low cost airlines in Indonesia through the cumulative variance amount.

That‟s why on Table 4.9 that is labeled “Rotation Sums of Squared Loadings,” the factors‟ eigenvalues is displayed. Rotation has the effect of optimizing the factor structure (Field, 2005) and one consequence for these data is that the relative importance of the six factors is equalized. And from this table, it can be noticed all 19 valid variables have formed six new factors. These six new factors contribute totally 69.598% to the revitalization of brand image of low cost airlines in Indonesia.

Meanwhile, the rest 30.402% of the variance could not be represented in those six new factors. These new factors will be deeply explained in the next parts of this research. Explanations will cover the elimination of one new factor due to some reasons and the labeling of new factors so that the result interpretation can be conducted smoothly.

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Table 4.10 Communalities Table and Rotated Component Matrix Table

Communalities and Rotated Component Matrix Table

Rotated Component Matrix

Initial Extraction Remarks Component

1 2 3 4 5 6

x2.6 1.000 .649 Valid .760

x2.2 1.000 .677 Valid .759

x2.3 1.000 .580 Valid .714

x2.5 1.000 .618 Valid .705

x2.4 1.000 .609 Valid .555

x1.2 1.000 .796 Valid .865

x1.1 1.000 .690 Valid . .768

x1.3 1.000 .744 Valid .760

x3.2 1.000 .796 Valid .840

x3.3 1.000 .762 Valid .803

x3.1 1.000 .609 Valid .653

x5.4 1.000 .737 Valid .824

x5.5 1.000 .755 Valid .782

x5.6 1.000 .573 Valid .614

x4.3 1.000 .784 Valid .782

x4.2 1.000 .718 Valid .715

x4.1 1.000 .648 Valid .708

x5.2 1.000 .714 Valid .780

x5.1 1.000 .765 Valid .777

Source: SPSS 16.0 and Self-Developed Primary Data

From table 4.10, all statements have extraction value more than 0.5 in the column extraction, so researcher decided all statements are valid for this research. And for the six factors (latent variables) formed can be analyzed thoroughly as follow

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1. Factor 1

The first factor has the variance value amount of 15.585% (see Table 4.9). The First factor consists of five manifest variables which are illustrated in table 4.11 below

Table 4.11 Factor 1 Variables Operations

Variables Values x2.6 I am happy with the advertising of this low cost airline .760 brand

x2.2 I react favorably to the advertising of this low cost .759 airline brand

x2.3 I feel positive toward the advertising of this low cost .714 airline brand

x2.5 The advertising of this low cost airline brand does a .705 good job

x2.4 The advertising of this low cost airline brand is good .555

Source: SPSS 16.0 and Self-Developed Primary Data

The first factor should be termed “Advertising Communications”. The reason behind that because all variables on table 4.11, the factor discuss about advertising, which includes feeling happy, reaction favorably, feeling positive toward the advertising and advertising of the company is good.

2. Factor 2

The second factor has the variance value amount of 12.034% (see Table 4.9). The Second factor consists of three manifest variables which are illustrated in Table 4.12 below

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Table 4.12 Factor 2 Variables Operation

Variables Values x1.2 This low cost airline brand offers a very convenient .865 repair or replacement service

x1.1 I would prefer the product/ service of this low cost .768 airline brand more than I would before

x1.3 I believe this low cost airline brand offers a .760 comprehensive warranty

Source: SPSS 16.0 and Self-Developed Primary Data

The second factor should be termed “Warranty Program”. The reason behind that because all variables on table 4.12, the factor discuss about warranty program, which includes does the airline offering convenient repair, comprehensive warranty, and do respondents trust with the airline

3. Factor 3

The third factor has the variance value amount of 11.158% (see Table 4.9). The third factor consists of three manifest variables which are illustrated in table 4.13 below.

Table 4.13 Factor 3 Variable Operation

Variables Values x3.2 This low cost airline brand frequently introduces more .840 innovations than its competitors

x3.3 I find this low cost airline brand‟s innovations to be .803 more delightful than its competitors

x3.1 This low cost airline brand is known for being innovative .653

Source: SPSS 16.0 and Self-Developed Primary Data

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The third factor should be termed “Innovative Service Improvements”. The reason behind that because all variables on table 4.13, the factor discuss about does the airline frequently introduces more delightful innovation than the competitors.

4. Factor 4

The fourth factor has the variance value amount of 10.579% (see Table 4.9). The fourth factor consists of three manifest variables which are illustrated in table 4.14 below

Table 4.14 Factor 4 Variable Operation

Variables Value x5.4 The airline insists on error free records .824

x5.5 The airline provides the service at the time of promised .782

x5.6 Crews will give prompt service to customer .614

Source: SPSS 16.0 and Self-Developed Primary Data

The fourth factor should be termed “Reliability Aspects”. The reason behind that because all variables on table 4.14, the factor discuss about does the airline insist on error free records, provide the service at the time of promised and the crews giving the good services.

5. Factor 5

The fifth factor has the variance value amount of 10.305% (see Table 4.9). The fifth factor consists of three manifest variables which are illustrated in table 4.15 below

Table 4.15 Factor 5 Variable Operation

Variables Values x4.3 The positive third-party appraisal made me want to try .782

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this low cost airline

x4.2 I react favorably to the positive third-party appraisal of .715 this low cost airline brand

x4.1 There has been any type of positive third party .708 appraisal of the brand that you aware of (Consumer magazines, news reports, etc.)

Source: SPSS 16.0 and Self-Developed Primary Data

The fifth factor should be termed “Third Party Appraisals”. The reason behind that because all variables on table 4.15, the factor discussing about positive third party appraisal and how Indonesians will react toward that.

6. Factor 6

The sixth factor has the variance value amount of 9.938% (see Table 4.9). The sixth factor consists of two manifest variables which are illustrated in table 4.16 below.

Table 4.16 Factor 6 Variables Operations

Variables Values x5.2 The airline has good physical facilities .780

x5.1 The airline has modern looking equipment .777

Source: SPSS 16.0 and Self-Developed Primary Data

The sixth factor should be termed “Tangible Aspects”. The reason behind is that because both variables in table 4.16, the factors are mostly related to physical facilities and equipment sot the airlines itself.

This is the last part of factor analysis. The researcher sees from the result at table 4.9, the convergent value is high for every each other factor loading. And there is no divergence at all.

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4.2.2 Reliability Test

After having six new factors, the next process is to check the reliability of each factor. The reliability test is also needed to figure out whether the new factors are accurate, precise and consistent enough to be utilized. According to Malhotra (2010), the Cronbach‟s alpha on reliability table is less than 0.6 is not reliable and for Cronbach‟s Alpha value in table item-total statistic, must be below of Cronbach‟s Alpha value on Reliability table. The computed Alpha values of each variable for the research variables indicated below.

Table 4.17 Reliability Table of Advertising Communications (X1) Variable

Reliability Statistics

Cronbach's Alpha N of Items

.800 5 Source: SPSS 16.0 and Self-Developed Primary Data

Table 4.18 Item Total Statistics of Advertising Communications (X1) Variable

Item-Total Statistics Scale Mean if Item Scale Variance if Corrected Item- Cronbach's Alpha Deleted Item Deleted Total Correlation if Item Deleted

x2.6 13.4833 6.792 .596 .758

x2.2 13.5767 6.238 .608 .755

x2.3 13.4400 6.475 .625 .748

x2.5 13.4933 6.933 .581 .762

x2.4 13.4067 7.413 .510 .783 Source: SPSS 16.0 and Self-Developed Primary Data

From table 4.17 Reliability Statistic, the value of Cronbach‟s Alpha for advertising communication (X1) variable is 0.800 which considered reliable.

This table related to table 4.18 Item-Total Statistic of advertising communications which for the first statement (x2.2) has Cronbach‟s Alpha value 0.755, second statement (x2.3) has Cronbach‟s Alpha value 0.748, the third statement (x2.4) has

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Cronbach‟s Alpha value 0.783, the fourth statement (x2.5) has Cronbach‟s Alpha value 0.762 and last the fifth statement (x2.6) has Cronbach Alpha value 0.758.

Table 4.19 Reliability Table of Warranty Programs (X2) Variable

Reliability Statistics

Cronbach's Alpha N of Items

.792 3 Source: SPSS 16.0 and Self-Developed Primary Data

Table 4.20 Item-Total Statistics of Warranty Program (X2) Variable

Item-Total Statistics Scale Mean if Item Scale Variance if Corrected Item- Cronbach's Alpha Deleted Item Deleted Total Correlation if Item Deleted

x1.2 5.8967 1.939 .692 .651

x1.1 5.9400 2.197 .604 .747

x1.3 5.7367 2.188 .605 .746 Source: SPSS 16.0 and Self-Developed Primary Data

From table 4.19 Reliability Statistic, the value of Cronbach‟s Alpha for warranty program (X2) variable is 0.792 which considered reliable.This table related to table 4.20 Item-Total Statistic of warranty program which for the first statement (x1.1) has Cronbach‟s Alpha value 0.747, second statement (x1.2) has Cronbach‟s Alpha value 0.651 and last the third statement (x1.3) has Cronbach‟s Alpha value 0.746.

Table 4.21 Reliability Table of Innovative Product Improvements (X3) Variable

Reliability Statistics

Cronbach's Alpha N of Items

.771 3

Source: SPSS 16.0 and Self-Developed Primary Data

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Table 4.22 Item-Total Statistics of Innovative Product Improvements (X3) Variable

Item-Total Statistics

Scale Mean if Item Scale Variance if Corrected Item- Cronbach's Alpha Deleted Item Deleted Total Correlation if Item Deleted

x3.2 6.6333 2.159 .693 .588

x3.3 6.6133 2.251 .616 .682

x3.1 6.6267 2.823 .521 .780 Source: SPSS 16.0 and Self-Developed Primary Data

From table 4.21 Reliability Statistic, the value of Cronbach‟s Alpha for Innovative Product Improvements (X3) variable is 0.771 which is considered reliable. But at the table 4.22 Item-Total Statistic, statement x3.1 must be removed from the test because its Cronbach‟s Alpha value is 0.780 more than it is supposed to be.

Table 4.23 Reliability Table of Innovative Product Improvements (X3) Variable after Removing Statement x3.1 Reliability Statistics

Cronbach's Alpha N of Items

.780 2 Source: SPSS 16.0 and Self-Developed Primary Data

Table 4.24 Item-Total Statistics of Innovative Product Improvements (X3) Variable after Removing Statement x3.1 Item-Total Statistics Scale Mean if Item Scale Variance if Corrected Item- Cronbach's Alpha Deleted Item Deleted Total Correlation if Item Deleted

x3.2 3.3233 .882 .639 .a

x3.3 3.3033 .841 .639 .a

Source: SPSS 16.0 and Self-Developed Primary Data

From table 4.23 Reliability Statistic after removing statement x3.1, the value of Cronbach‟s Alpha for Innovative Product Improvement (X3) variable is 0.780 which is considered reliable.

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Table 4.25 Reliability Table of Reliability Aspect (X4) Variable

Reliability Statistics

Cronbach's Alpha N of Items

.721 3 Source: SPSS 16.0 and Self-Developed Primary Data

Table 4.26 Item-Total Statistics of Reliability Aspect (X4) Variable

Item-Total Statistics Scale Mean if Item Scale Variance if Corrected Item- Cronbach's Alpha Deleted Item Deleted Total Correlation if Item Deleted

x5.4 6.3533 2.443 .567 .602

x5.5 6.2500 2.235 .633 .512

x5.6 6.1167 3.408 .455 .733 Source: SPSS 16.0 and Self-Developed Primary Data

From table 4.25 Item-Total Statistic for variable, Cronbach‟s Alpha for statement (x5.6) is 0.733, more than the value supposed to be, so it must be removed.

Table 4.27 Reliability Table of Reliability Aspect (X4) Variable After Removing Statements x5.6

Reliability Statistics

Cronbach's Alpha N of Items

.733 2 Source: SPSS 16.0 and Self-Developed Primary Data

Table 4.28 Item-Total Statistics of Reliability Aspect (X4) Variable After Removing Statements x5.6

Item-Total Statistics

Scale Mean if Item Scale Variance if Corrected Item- Cronbach's Alpha Deleted Item Deleted Total Correlation if Item Deleted

x5.4 3.1100 1.102 .579 .a

x5.5 3.0067 1.057 .579 .a

Source: SPSS 16.0 and Self-Developed Primary Data

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From table 4.27 Reliability Statistic after removing statement x5.6, the value of Cronbach‟s Alpha for Reliability Aspect (X4) variable is 0.733 which is considered reliable. This table related to table 4.27 Item-Total Statistic of Reliability Aspect (X4) variable after removing statement x5.6.

Table 4.29 Reliability Table of Third Party Appraisal (X5) Variable

Reliability Statistics

Cronbach's Alpha N of Items

.685 3 Source: SPSS 16.0 and Self-Developed Primary Data

Table 4.30 Item-Total Statistics of Third Party Appraisal (X5) Variable

Item-Total Statistics Scale Mean if Item Scale Variance if Corrected Item- Cronbach's Alpha Deleted Item Deleted Total Correlation if Item Deleted

x4.3 6.5600 1.618 .551 .525

x4.2 6.6033 1.692 .454 .650

x4.1 6.6367 1.630 .494 .597 Source: SPSS 16.0 and Self-Developed Primary Data

From table 4.29 Reliability Statistic, the value of Cronbach‟s Alpha for Third Party Appraisals (X5) variable is 0.685 which considered reliable. This table related to table 4.30 Item-Total Statistic of Third Party Appraisal which for the first statement (x4.1) has Cronbach‟s Alpha value 0.597, second statement (x4.2) has Cronbach‟s Alpha value 0.650 and last the third statement (x4.3) has Cronbach‟s Alpha value 0.525.

Table 4.31 Reliability Table of Tangible Aspect (X6) Variable

Reliability Statistics

Cronbach's Alpha N of Items

.793 2

Source: SPSS 16.0 and Self-Developed Primary Data

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Table 4.32 Item-Total Statistic of Tangibles Aspect (X6) Variable Item-Total Statistics

Scale Mean if Item Scale Variance if Corrected Item- Cronbach's Alpha Deleted Item Deleted Total Correlation if Item Deleted

x5.2 3.4200 .726 .657 .a

x5.1 3.4333 .735 .657 .a

Source: SPSS 16.0 and Self-Developed Primary Data

From table 4.31 Reliability Statistic, the value of Cronbach‟s Alpha for Tangible Aspect (X6) variable is 0.793 which considered reliable. This table related to table 4.32 Item-Total Statistic of Reliability Aspect.

Table 4.33 Reliability Table of Brand Image Revitalization (Y) Variable

Reliability Statistics

Cronbach's Alpha N of Items

.623 3 Source: SPSS 16.0 and Self-Developed Primary Data

Table 4.34 Item-Total Statistics of Brand Image Revitalization (Y) Variable

Item-Total Statistics Scale Mean if Item Scale Variance if Corrected Item- Cronbach's Alpha Deleted Item Deleted Total Correlation if Item Deleted

y.1 7.0200 1.832 .393 .575

y.2 6.7800 1.751 .451 .500

y.3 7.0067 1.485 .457 .489 Source: SPSS 16.0 and Self-Developed Primary Data

From table 4.33 Reliability Statistic, the value of Cronbach‟s Alpha for Brand Image Revitalization (Y) variable is 0.623 which considered reliable. This table related to table 4.34 Item-Total Statistic of Brand Image Revitalization which for the first statement (Y.1) has Cronbach‟s Alpha value 0.575, second statement (Y.2) has Cronbach‟s Alpha value 0.500 and last the third statement (Y.3) has Cronbach‟s Alpha value 0.489.

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4.2.3 Descriptive Statistic

4.2.3.1 Respondent Profile

Figure 4.5 Demographic Views (Gender)

Gender

Male (134) Female 45% (166) 55%

Source: Microsoft Excel 2010 and Primary Data

At the chapter 3, the researcher needs to find 300 respondents. At the end of the results, on the figure 4.5 there were 55% or 166 female respondents and 45% or 134 male respondents who helped fulfilling the data that researcher needs

Figure 4.6 Demographic Views (Age)

Age >51 Years (28) 9%

41-50 Years (66) 22% 21-30 Years (144) 48%

31-40 Years (62) 21%

Source: Microsoft Excel 2010 and Primary Data

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At chapter 3, the researcher needs respondents who are Indonesians in range of age minimum 21 years old who has earn their own money under employment bond and who have been flying with International-chained or low cost airlines in Indonesia such as Air Asia, Tiger Mandala, Lion Air, and Citilink.

At the end of the results, on the figure 4.6, there were 48% or 144 respondents in the range of 21-30 years old, 21% or 62 respondents in the range of 30-40 years old.22% or 66 respondents in the range of 41-50 years old and last but not least around 9% or 28 respondents in the range of more than 51 years old who helped the researcher gather the data.

Figure 4.7 Demographic Views (Education)

Master Degree or Education Higher (22) 7%

High School or Below (128) Bachelor Degree 43% (120) 40%

Diploma (30) 10%

Source: Microsoft Excel 2010 and Primary Data

On the figure 4.7, demographic views for education level, there were around 43% or 128 respondents who have high school or below on their education level, 10% or 30 respondents who have diploma, 40% or 120 respondents who have bachelor degree and the last but not least 7% or 22 respondents who have level education in the level of master degree or higher.

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Figure 4.8 Demographic Views (Income Level per Month in Million IDR)

Income Level per Month >10 Million IDR (36) 12%

<2 Million 5-10 IDR (86) Million 29% IDR (76) 3-5 25% Million IDR 2-3 Million IDR (64) (38) 21% 13%

Source: Microsoft Excel 2010 and Primary Data

On the figure 4.8, demographic views for income level per month, there were around 29% or 86 respondents who earn <2 million IDR per month, 13% or 38 respondents who earn 2-3 million IDR, 21% or 64 respondents who earn 3-5 million IDR, 25% or 76 respondents who earn 5-10 million IDR, and around 12% or 36 respondents who earn >10 million IDR per month for their salary

Figure 4.9 Demographic Views (How Many Times of Low Cost Airline brands have you been Consumed?)

Low Cost Airline in Indonesia Have Been Consumed by You Only One Times (60) 20%

More Than one times (240) 80%

Source: Microsoft Excel 2010 and Primary Data

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On the figure 4.9, demographic views for how many times the respondents have consumed the low cost airline brands in this research. The results are there were around 80% or 240 respondents who have already consumed the low cost airline more than one times and only 20% or 60 respondents who only consumed it one times.

Figure 4.10 Demographic Views (Which Airline Do You Fly Most Frequently?)

Which Airline Do You Fly Most Frequently?

Citilink (28) 9%

Air Asia (116) 39%

Lion Air (126) 42%

Tigerair Mandala (30) 10%

Source: Microsoft Excel 2010 and Primary Data

On the figure 4.10, demographic views for which airline the respondents fly most frequently, there were 39% or 116 respondents who choose Air Asia, 10% or 30 respondents who choose Tigerair Mandala, 42% or 126 respondents who choose Lion Air and the last but not least around 9% or 28 respondents who choose Citilink as the airline which respondents fly most frequently.

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Figure 4.11 Demographic Views (How Often Do You Travel with that Airline?)

How Often Do You Travel with That

Airline? >12 Times per 8-11 Times per Year Year (20) 1% 7%

4-7 Times per Year (94) <3 Times per 31% Year (182) 61%

Source: Microsoft Excel 2010 and Primary Data

On the figure 4.11, demographic views for how often the respondents travel with the airline, there were around 61% or 182 respondents who travel below 3 times per year, 31% or 94 respondents who travel around 4-7times per year, 7% or 20 respondents who travel 8-11times per year and only 1% or 4 respondents who travel more than 12 times per year using the airplane.

4.2.3.2 Variable Frequency

In This Part, the researcher will show each survey results based on each variable for each company. X1 is Advertising Communications, X2 is warranty program, X3 is Innovative Product Improvements, X4 is Reliability Aspects, X5 is Third party Appraisal and the last but not least X6 is Tangible Aspects.

A. Advertising Communications

The first variable or X1 is Advertising Communications which consists of 5 statements that related to the revitalization of brand image. These 5 statements is

64 comes after checked of the validity test process. At the first time, the researcher has 6 statements on Advertising Communications Variable, but because the first statements cannot reach 0.5, so it considered invalid.

Figure 4.12 Advertising Communications (X1) on Air Asia Indonesia

Advertising Communication on Air Asia Indonesia

X2.6

X2.5 Strongly Disagree Disagree X2.4 Neutral Agree X2.3 Strongly Agree

X2.2

0% 20% 40% 60% 80% 100%

Source: Microsoft Excel 2010 and Primary Data

On figure 4.12, 36.2% respondent chose to be Neutral, 34.5% Agree and 12.06% respondents strongly agree to react favorably to the advertising of Air Asia Indonesia. 33.6% respondents chose to be Neutral, 31.03% agree and 18.96 respondents strongly agree to feel positive toward the advertising of Air Asia Indonesia. The Advertising of Air Asia does a good job, around 49.13% respondents chose to be Neutral, 33.6% agree, and 11.2% strongly agree with the statement. The advertising of Air Asia Indonesia is good, around 37% respondents chose to be Neutral, 36.2% agree and 8.6% respondents strongly agree with the statements. 50.86% respondents chose to be Neutral, 29.31% agree and 10.34% respondents strongly agree if they are happy with the advertising of Air Asia Indonesia

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Figure 4.13 Advertising Communications (X1) on Citilink

Advertising Communications on Citilink

X2.6 Strongly Disagree X2.5 Disagree X2.4 Neutral X2.3 X2.2 Agree 0% 20% 40% 60% 80% 100% Strongly Agree

Source: Microsoft Excel 2010 and Primary Data

On figure 4.13, 75% respondents chose to be Neutral and only 3.5% agree if they react favorably to the advertising of Citilink meanwhile around 10.7% disagree and strongly disagree with the statement. Around 42.85% chose to be neutral as same as respondents agree if they feel positive toward the advertising of Citilink. The Advertising of Citilink does a good job, around 71.4% respondent chose to be Neutral and 21.4% agree with that statement. The advertising of Citilink is good, arounf 64.3% respondent chose to be Neutral and 28.57% respondent agree with the statement. The last, 57.1% respondents chose to be Neutral and 21.4% agree if they are happy with the advertising of Citilink.

Figure 4.14 Advertising Communications (X1) on Lion Air

Advertising Communications on Lion Air

X2.6 Strongly Disagree X2.5 Disagree X2.4 Neutral X2.3 Agree

X2.2 Strongly Agree

0% 20% 40% 60% 80% 100%

Source: Microsoft Excel 2010 and Primary Data

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On figure 4.14, 42.1% respondents chose to be neutral, 33.3% agree and 6.6% strongly agree if they react favorably to the advertising of Lion Air. 44.4% respondent chose to be neutral, 35.7% agree and 5.5% strongly agree if they feel positive toward the advertising of Lion Air. The advertising of Lion Air does a good job, around 53.17% respondents chose to be neutral, 34.12% agree and 7.9% strongly agree with that statement. The advertising of Lion Air is good, 48.4% respondents chose to be Neutral, 32.5% agree and 6.3% strongly agree with that statement. The last, around 49.2% respondent chose to be neutral, 34.9% agree and 9.5% strongly agree if they are happy with the advertising of Lion air.

Figure 4.15 Advertising Communications (X1) on Tigerair Mandala

Advertising Communications on Tigerair Mandala

X2.6

X2.5 Strongly Disagree Disagree X2.4 Neutral Agree X2.3 Strongly Agree

X2.2

0% 20% 40% 60% 80% 100%

Source: Microsoft Excel 2010 and Primary Data

On figure 4.15, around 76.6% respondent agree if they react favorably to the advertising of Tiger Mandala. 33.3% respondents chose to be neutral and 43.3% chose to agree if they feel positive toward the advertising of Tiger Mandala. The advertising of Tiger Mandala does a good job, 66.6% respondents agree with that statement. The advertising of Tiger Mandala is good, around 40% respondents chose to be neutral, 36.6% agree and 16.6% strongly agree with the statement.

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The last, 66.6% respondents chose to be neutral, 13.3% agree as same as strongly agree if they are happy with the advertising of Tiger Mandala.

B. Warranty Program

The second variable or X2 is Warranty Programs which consists of 3 statements that related to the revitalization of brand image. These 3 statements is comes after checked of the validity test process. x1.1 is represented of “this low cost airline brand offers an outstanding warranty (ex. Refund, fast luggage claim, reasonable, etc). x1.2 is represented “this low cost airline brand offers a very convenient repair or replacement service”. x1.3 is represented “I believe this low cost airline brand offers a comprehensive warranty”

Figure 4.16 Warranty Programs (X2) on Air Asia Indonesia

Warranty Program on Air Asia Indonesia

X1.3 Strongly Disagree Disagree X1.2 Neutral Agree X1.1 Strongly Agree

0% 20% 40% 60% 80% 100%

Source: Microsoft Excel 2010 and Primary Data

On the figure 4.16, Air Asia Indonesia offers an outstanding warranty program, 44.8% respondents chose to be Neutral. 23.3% respondents agree with that statement and only 3.45% respondents strongly agrees with the statement. Air Asia Indonesia offers a very convenient repair or replacement service, around 50% choose to be Neutral, 30.1% agree and only 1.7 % respondents strongly agree with that. I believe, Air Asia Indonesia offers a comprehensive warranty, 53.4% chose to be Neutral, 31.8% Agree and only 3.44% respondents strongly agree with that.

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Figure 4.17 Warranty Program (X2) on Citilink

Warranty Program on Citilink

X1.3 Strongly Disagree Disagree X1.2 Neutral

X1.1 Agree Strongly Agree 0% 20% 40% 60% 80% 100%

Source: Microsoft Excel 2010 and Primary Data

On figure 4.17, Citilink offers an outstanding warranty program, 42.8% respondents chose to be Neutral meanwhile 28% agree with the statement. Citilink offers over convenient repair or replacement service, 39.2% chose to be Neutral meanwhile 35.7% agree with that. I believe, Citilink offers comprehensive warranty, around 50% respondents chose to be Neutral, 28.6% Agree and 10.7% respondents strongly agree with the statement.

Figure 4.18 Warranty Program (X2) on Lion Air

Warranty Program on Lion Air

X1.3

Strongly Disagree Disagree X1.2 Neutral Agree Strongly Agree X1.1

0% 20% 40% 60% 80% 100%

Source: Microsoft Excel 2010 and Primary Data

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On figure 4.18, Lion Air offer an outstanding warranty program, around 41.27% chose to be Neutral, 41.23% disagree and only 11.11% Agree. Lion Air offers a very convenient repair or replacement service, 38.1% respondent chose to be Neutral, 37.3% Disagree, meanwhile just only 13.5% Agree and 1.5% respondents strongly agree with the statement. I believe Lion Air offers a comprehensive warranty, around 47.6% chose to be Neutral, 28.36% Disagree meanwhile just only 12.7% agree and 4.7% strongly agree with the statement.

Figure 4.19 Warranty Program (X2) on Tigerair Mandala

Warranty Program on Tigerair Mandala

X1.3

Strongly Disagree Disagree X1.2 Neutral Agree Strongly Agree

X1.1

0% 20% 40% 60% 80% 100%

Source: Microsoft Excel 2010 and Primary Data

On figure 4.19, Tiger Mandala Airways offers an outstanding warranty program, 60% respondents chose to be Neutral and 30 % agree with that. Tiger Mandala offers a very convenient repair or replacement service, 80% respondents chose to be Neutral and 10% Agree. I believe Tiger Mandala Airways offers a comprehensive warranty, 60% chose to be Neutral and 26.67% agree with the statement.

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C. Innovative Product Improvement

The third variable or X3 is Innovative Product Improvement which consists of 4 statements that related to the revitalization of brand image. Researcher decided to remove 2 statements from this research, because for the first statement “this low cost airline brand is known for being innovative” at reliability test its Cronnbach‟s Alpha value more than statistic which it supposed to be. And the second statement “this low cost airline brand provides many channel to buy ticket” must be removed because after so many steps of calculation, its value in communalities table lower than 0.5 and researcher consider it as invalid.

Figure 4.20 Innovative Product Improvements (X3) on Air Asia Indonesia

Innovative Product Improvement on Air Asia Indonesia

X3.3 Strongly Disagree Disagree Neutral Agree

X3.2 Strongly Agree

0% 20% 40% 60% 80% 100%

Source: Microsoft Excel 2010 and Primary Data

On figure 4.20, Air Asia Indonesia frequently introduces more innovations than its competitors, around 36.2% chose to be neutral, 44.8% agree and 10.34% strongly agree with that statement. 29.31% respondent chose to be neutral, 43.9% agree and 14.6% strongly agree if they find Air Asia Indonesia‟s innovations to be more delightful than its competitors.

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Figure 4.21 Innovative Product Improvements (X3) on Citilink

Innovative Product Improvement on Citilink

X3.3 Strongly Disagree Disagree Neutral

X3.2 Agree Strongly Agree

0% 20% 40% 60% 80% 100%

Source: Microsoft Excel 2010 and Primary Data

On figure 4.21, Citilink frequently introduces more innovations than its competitors, 35.7% respondent chose to be neutral and 42.86% agree with that statement. Third, 42.86% respondent chose to be neutral and 35.7% agree with the statement if they find Citilink to be more delightful than its competitor.

Figure 4.22 Innovative Product Improvements (X3) on Lion Air

Innovative Product Improvements on Lion Air

X3.3 Strongly Disagree Disagree Neutral Agree X3.2 Strongly Agree

0% 20% 40% 60% 80% 100%

Source: Microsoft Excel 2010 and Primary Data

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On figure 4.22, Lion Air frequently introduces more innovations than its competitors, 46.03% respondent chose to be neutral and 26.98% agree with that statement, meanwhile 15.87% disagree. Third, 44.44% respondent chose to be neutral and 25.4% agree with the statement if they find Lion Air to be more delightful than its competitor, meanwhile 26.98% disagree with that.

Figure 4.23 Innovative Product Improvements (X3) on Tigerair Mandala

Innovative Product Improvements on Tigerair Mandala

X3.3

Strongly Diasgree Disagree Neutral Agree Strongly Agree X3.2

0% 20% 40% 60% 80% 100%

Source: Microsoft Excel 2010 and Primary Data

On figure 4.23, Tiger Mandala frequently introduces more innovations than its competitors, around 66.6% respondents agree with that statement. Third, 26.6% respondent chose to be neutral, and 40% strongly agree with the statement if they find Tiger Mandala to be more delightful than its competitor.

D. Reliability Aspect

The fourth variable or X4 is Tangible Aspect which consists of 2 statements that related to the revitalization of brand image.

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Figure 4.24 Reliability Aspects (X4) on Air Asia Indonesia

Reliability Aspects on Air Asia Indonesia

X5.5 Strongly Disagree Disagree Neutral Agree X5.4 Strongly Agree

0% 20% 40% 60% 80% 100%

Source: Microsoft Excel 2010 and Primary Data

On figure 4.24, around 47.4% respondent chose to be neutral, 30.17% agree and 10.34% strongly agree if Air Asia Indonesia insists on error free records. Air Asia Indonesia provides the service at the time promise, around 31.89% respondent chose to be neutral, 45.68% agree and 10.34% strongly agree with the statement.

Figure 4.25 Reliability Aspects (X4) on Citilink

Reliability Aspects on Citilink

X5.5 Strongly Disagree Disagree Neutral Agree X5.4 Strongly Agree

0% 20% 40% 60% 80% 100%

Source: Microsoft Excel 2010 and Primary Data

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On figure 4.25, around 64.28% respondent chose to be neutral, 21.42% agree and 14.28% strongly agree if Citilink insists on error free records. Citilink provides the service at the time promise, around 35.71% respondent chose to be neutral, 28.57% agree as same as strongly agree with the statement.

Figure 4.26 Reliability Aspects (X4) on Lion Air

Reliability Aspects on Lion Air

X5.5 Strongly Disgree Disagree Neutral X5.4 Agree Strongly Agree

0% 20% 40% 60% 80% 100%

Source: Microsoft Excel 2010 and Primary Data

On figure 4.26, around 34.9% respondent chose to be neutral, 28.57% disagree and 18.25% strongly disagree if Lion Air insists on error free records. Lion Air provides the service at the time promise, around 36.5% respondent chose to be neutral, 30.15% disagree and 15.87 strongly disagree with the statement.

Figure 4.27 Reliability Aspects (X4) on Tiger Mandala

Reliability Aspects on Tiger Mandala

Strongly Disagree X5.5 Disagree Neutral X5.4 Agree Strongly Agree 0% 20% 40% 60% 80% 100%

Source: Microsoft Excel 2010 and Primary Data

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On figure 4.27, around 46.6% respondent chose to be neutral and 26.6% agree if Tiger Mandala insists on error free records. Tiger Mandala provides the service at the time promise, around 40% respondent chose to be neutral and 26.6% agree meanwhile 33.3% disagree with the statement.

E. Third-Party Appraisals

The fifth variable or X5 is Third Party Appraisal which consists of 3 statements that related to the revitalization of brand image. These 3 statements is comes after checked of the validity test process.

Figure 4.28 Third Party Appraisals (X5) on Air Asia Indonesia

Third Party Appraisal on Air Asia Indonesia

X4.3

Strongly Disagree Disagree X4.2 Neutral Agree Strongly Agree X4.1

0% 20% 40% 60% 80% 100%

Source: Microsoft Excel 2010 and Primary Data

On figure 4.28, around 40.5% respondents chose to be neutral and 52.58% agree with the statement if there has been any type of positive third party appraisal of Air Asia Indonesia in magazine, newspaper, etc. Around 34.4% respondent chose to be neutral 49.1% agree if they react favorably to the positive third party appraisal of Air Asia Indonesia. The positive third party appraisal, made the respondents want to try Air Asia Indonesia, around 46.55% chose to be neutral and 44.83% agree with that.

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Figure 4.29 Third Party Appraisals (X5) on Citilink

Third Party Appraisal on Citilink

X4.3 Strongly Disagree Disagree X4.2 Neutral Agree X4.1 Strongly Agree

0% 20% 40% 60% 80% 100%

Source: Microsoft Excel 2010 and Primary Data

On figure 4.29, around 50% respondents chose to be neutral and 35.7% agree with the statement if there has been any type of positive third party appraisal of Citilink in magazine, newspaper, etc. Around 35.7% respondent chose to be neutral 57.14% agree if they react favorably to the positive third party appraisal of Citilink. The positive third party appraisal, made the respondents want to try Citilink, around 54.28% chose to be neutral and 35.71% agree with that.

Figure 4.30 Third Party Appraisals (X5) on Lion Air

Third Party Appraisal on Lion Air

X4.3 Strongly Disagree Disagree X4.2 Neutral Agree X4.1 Strongly Agree

0% 20% 40% 60% 80% 100%

Source: Microsoft Excel 2010 and Primary Data

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On figure 4.30, around 50.79% respondents chose to be neutral and 28.8% agree with the statement if there has been any type of positive third party appraisal of Lion Air in magazine, newspaper, etc meanwhile around 20.63% disagree with that. Around 53.96% respondent chose to be neutral 25.39% agree if they react favorably to the positive third party appraisal of Lion Air meanwhile 18.86% disagree. The positive third party appraisal, made the respondents want to try Lion Air, around 41.26% chose to be neutral and 33.33% agree with that statement meanwhile 19.04% disagree.

Figure 4.31 Third Party Appraisals (X5) on Tigerair Mandala

Third Party Appraisal on Tigerair Mandala

X4.3

Strongly Disagree Disagree X4.2 Neutral Agree Strongly Agree X4.1

0% 20% 40% 60% 80% 100%

Source: Microsoft Excel 2010 and Primary Data

On figure 4.31, around 40% respondents chose to be neutral and 46.6% agree with the statement if there has been any type of positive third party appraisal of Tiger Mandala in magazine, newspaper, etc. Around 63.3% respondent chose to be neutral 13.3% agree as same as strongly agree if they react favorably to the positive third party appraisal of Tiger Mandala. The positive third party appraisal, made the respondents want to try Tiger Mandala, around 46.6% chose to be neutral and 33.3% agree with that.

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F. Tangibles Aspects

The sixth variable or X6 is Tangible Dimension which consists of 2 statements that related to the revitalization of brand image.

Figure 4.32 Tangibles Aspects (X6) on Air Asia Indonesia

Tangible Aspects on Air Asia Indonesia

X5.2 Strongly Disagree Disagree Neutral X5.1 Agree Strongly Agree

0% 20% 40% 60% 80% 100%

Source: Microsoft Excel 2010 and Primary Data

On figure 4.32, around 39.65% respondents chose to be neutral, 37.93% agree and 11.5% strongly agree if Air Asia Indonesia has modern looking equipment. Around 34.48% respondents chose to be neutral, 39.65% agree, and 15.51% strongly agree if Air Asia Indonesia has good physical facilities.

Figure 4.33 Tangible Aspects (X6) on Citilink

Tangible Aspects on Citilink

X5.2 Strongly Disagree Disagree Neutral X5.1 Agree Strongly Agree 0% 20% 40% 60% 80% 100%

Source: Microsoft Excel 2010 and Primary Data

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On figure 4.33, around 50 % respondents chose to be neutral, 50% agree if Citilink has modern looking equipment. Around 50% respondents chose to be neutral, 42.85% agree if Citilink has good physical facilities.

Figure 4.34 Tangible Aspects (X6) on Lion Air

Tangible Aspect on Lion Air

X5.2 Strongly Disgree Disagree Neutral

X5.1 Agree Strongly Agree

0% 20% 40% 60% 80% 100%

Source: Microsoft Excel 2010 and Primary Data

On figure 4.34, around 39.68 % respondents chose to be neutral, 36.2% agree if Lion Air has modern looking equipment meanwhile 22.4% disagree with that. Around 55.5% respondents chose to be neutral, 25.4% agree if Lion Air has good physical facilities.

Figure 4.35 Tangible Aspects (X6) on Tigerair Mandala

Tangible Aspects on Tigerair Mandala

X5.2 Strongly Disagree Disagree Neutral X5.1 Agree Strongly Agree 0% 20% 40% 60% 80% 100%

Source: Microsoft Excel 2010 and Primary Data

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On figure 4.35, around 33.3 % respondents chose to be neutral, 40% agree if Tiger Mandala has modern looking equipment. Around 36.6% respondents chose to be neutral, 26.6% agree and 20% strongly agree if Tiger Mandala has good physical facilities.

4.2.4 Classical Assumption Test

In order to use multiple regression models, there are so many test need to implement such as normality testing, heteroscedasity testing and multicollinearity. Before that, here are the results of calculations, tabulations and considerations made by researcher using SPSS 16.0

4.2.4.1 Normality Test

Normality Test used to test the independent variable (X) and the dependent variable (Y) on the resulting regression equation, whether normally distributed or not distributed normally. Histogram and P-P plot chart used to test the normality.

Table 4.35 Histogram Chart

Source: SPSS 16.0 and Self-Developed Primary Data

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Table 4.36 P-P Plot Chart

Source: SPSS 16.0 and Self-Developed Primary Data

Normal P-Plot of regression Standardized Residual on table 4.36 Suggest that the data spreading around the diagonal line and follow the direction of the diagonal line, then the regression model meet the assumption of normality.

4.2.3.2 Heteroscedascity Testing

Heteroscedascity needed to be tested for the same or not the variance of the residuals of the research with other research. If the residual have the same variance, it is called homoscedasticity and if the residuals have the difference variance, it is called heteroscedascity. It is good if there is no heteroscedasticity.

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Table 4.37 Scatterplot

Source: SPSS 16.0 and Self-Developed Primary Data

From table 4.37 above, it has the points spread above and below number 0 and showed there is no heterosdesticity.

4.2.3.3 Multicollinearity Test

In order to do the Multicollinearity test, the researcher used variance inflation factor or (VIF) to check. Variance inflation factor or (VIF) has function to measure how much the variance of the estimated coefficients is increased over the case of no correlation among the variables. According to Barry Render, Palph Stair and Michael Hanna (2006), a variable categorize or having a high collinearity if VIF value or results more than 10 or it has tolerance tend to approach 0.

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Table 4.38 Coefficients

Coefficientsa

Collinearity Statistics

Model Tolerance VIF

1 (Constant)

wAverage .791 1.264

aAverage .727 1.375

iAverage .805 1.243 tAverage .780 1.282

p21Average .777 1.286

p45Average .758 1.319 a. Dependent Variable: yAverage

Source: SPSS 16.0 and Self-Developed Primary Data

From table 4.38 Tolerance and VIF value for each variable has already appropriate with the rules and indicating that there is no multicollinearity. Thus the assumptions of normality, heterocedascity and multicollinearity in the regression model can be met from these models.

4.2.5 Testing the Hyphotesis

In chapter 3, the researcher has stated some hypothesis related to the problem related to this tudy. The researcher will use T-Test and F-Test in order to determine which hypothesis that researcher has to accept or reject.

4.2.5.1 F Test

F test is used to test the effect of all independent variables toward independent variable simultaneously.

 H0: β1 = 0, Null hypothesis is accepted if F value is greater than 0.05

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 Ha:β ≠ 0, Alternative hypothesis is accepted if F value less than 0.05

In this study, the researcher used SPSS V.16 to do the f test, and it showed in table below:

Table 4.39 F-Test Result – ANOVA

ANOVAb

Model Sum of Squares df Mean Square F Sig.

1 Regression 34.030 6 5.672 22.966 .000a

Residual 72.357 293 .247

Total 106.386 299 a. Predictors: (Constant), p45Average, aAverage, iAverage, wAverage, tAverage, p21Average b. Dependent Variable: yAverage

Source: SPSS 16.0 and Self-Developed Primary Data

The requirement value that has to achieve in this F test is the significance value has to be less than 0.05 and F value has to be greater than 1.96. From table 4.39 above, it can be seen that the significance value is 0.00 which is less than 0.05 and the f value is greater than 1.96 which is 22.966.

From that results it can be conclude that all of the independent variable has significant influence toward dependent variable of Brand Image of Revitalization.

It means in this study the researcher will accept the Ha and reject H0.

4.2.5.2 T-Test

T-Test is used to examine whether each independent variable factor has influence toward dependent variable. Each independent variable will be significance toward the dependent variable if each value of p of each independent variable is less than 0.05.

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Table 4.40 T-Test – Significance Value

Standardized Unstandardized Coefficients Coefficients

Model B Std. Error Beta t Sig.

1 (Constant) 1.065 .236 4.514 .000

wAverage .103 .047 .120 2.211 .028

aAverage .317 .053 .337 5.967 .000

iAverage .051 .060 .046 .855 .393

thAverage .128 .055 .128 2.348 .020

tAverage .028 .042 .037 .668 .504

rAverage .112 .036 .174 3.146 .002 a. Dependent Variable: yAverage Source: SPSS 16.0 and Self-Developed Primary Data

From table 4.40, it has shown each significance value of each independent variable, here are the results as following:

 Advertising Communications (X1) has significance value 0.000 which is less than 0.05. It means Advertising Communications (X1) is significance toward the dependent variable of Revitalization of Brand Image of Low

cost Airline in Indonesia and H0.2 is rejected and accepted H1.2 from the hypothesis.  Warranty Program (X2) has significance value of 0.028 which is less than 0.05. It means Warranty Program (X2) is significance toward the dependent variable of Revitalization of Brand Image of Low cost Airline

in Indonesia and H0.1 is rejected and accepted H1.1 from the hypothesis.  Innovative Product Improvements (X3) has significance value of 0.393 which is greater than 0.05. It means that Innovative Product Improvement (X3) is not significance toward the dependent variable of Revitalization of

Brand Image of Low cost Airline in Indonesia and H0.3 is accepted and

rejected H1.3 from the hypothesis.

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 Reliability Aspects (X4) has significance value 0.002 which is less than 0.05. It means Reliability Aspect (X4) is significance toward the dependent variable of Revitalization of Brand Image of Low cost Airline

in Indonesia and H06 is rejected and accepted H1.6 from the hypothesis.  Third Party Appraisals (X5) has significance value 0.020 which is less than 0.05. It means Third Party Appraisals (X5) is significance toward the dependent variable of Revitalization of Brand Image of Low cost Airline

in Indonesia and H0.4 is rejected and accepted H1.4 from the hypothesis.  Tangible Aspects (X6) has significance value of 0.504 which is greater than 0.05. It means that Tangible Aspect (X6) is not significance toward the dependent variable of Revitalization of Brand Image of Low cost

Airline in Indonesia and H0.5 is accepted and rejected H1.5 from the hypothesis.  According from the table 4.40, it can be conclude that among the six independent variables showed that the most significance factor is Advertising Communications (X1). It can be seen at t column where the value of Advertising Communications (X1) in t column was 5.967 which is the highest among others independent variables.  According from the table 4.40, although Innovative Product Improvements and Tangible Aspects are not significance toward the Revitalization of Brand Image of Low cost Airline in Indonesia, those independent variable partially still give influence toward the Revitalization of Brand Image as it still has values in t values as it showed in T test table.

4.2.5.3 Multiple Regressions Model

There are more than one independent variables that used in this study, because of that the researcher used multiple regression models in order to explain relationship between dependent variable and those independent variables.

Y= βo + β1X1 + β2X2 + β4X4 + ε

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Table 4.41 Significance Table

Significance Standard Independent Variables value Value of 0.05

Advertising Communications (X1) 0.000 Significance

Warranty Program (X2) 0.028 Significance

Innovative Product Improvements (X3) 0.393 Not Significance

Reliability Aspect(X4) 0.002 Significance

Third Party Appraisals (X5) 0.020 Significance

Tangible Aspect (X6) 0.504 Not Significance Source: SPSS 16.0 and Self-Developed Primary Data

Table 4.42 Coefficients – Standardized Coefficients

Coefficientsa

Standardized Unstandardized Coefficients Coefficients Collinearity Statistics

Model B Std. Error Beta T Sig. Tolerance VIF

1(Constant) 1.065 .236 4.514 .000

wAverage .103 .047 .120 2.211 .028 .791 1.264

aAverage .317 .053 .337 5.967 .000 .727 1.375

iAverage .051 .060 .046 .855 .393 .805 1.243

thAverage .128 .055 .128 2.348 .020 .780 1.282

tAverage .028 .042 .037 .668 .504 .777 1.286

rAverage .112 .036 .174 3.146 .002 .758 1.319 a. Dependent Variable: yAverage

Source: SPSS 16.0 and Self-Developed Primary Data

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From table 4.41, it has showed each significance value of each independent variable and it showed that there are two independent variable which not significance and it cannot be used in the multiple regression model.

From table 4.42, from the column of Standardized Coefficients form of the calculation of the regressions is as follows

Y = 0.337 Advertising Communication + 0.120 Warranty Program + 0.174Reliability Aspects + 0.128 Third Party Appraisals

4.2.5.4 Measuring the Variability of Regressions Models This measurement is used to examine whether this multiple regression models able to help in predicting the Revitalization of Brand Image of Low Cost Airline in Indonesia based on 6 independent variables

Table 4.43 Model Summary

Model Summaryb

Std. Error of the Model R R Square Adjusted R Square Estimate

1 .566a .320 .306 .49694

a. Predictors: (Constant), p45Average, aAverage, iAverage, wAverage, tAverage, p21Average

b. Dependent Variable: yAverage Source: SPSS 16.0 and Self-Developed Primary Data

Table 4.8 showed that R value which to describe the coefficient of correlation, where the R value is 0.566 which means that there is a quite strong correlation between independent variables and dependent variable of Revitalization of Brand Image of Low Cost Airline in Indonesia. The adjusted R square is to show how far or large these all independent variables can describe or affecting the independent variable. From figure 4.43 it show that adjusted R square value is only 0.306, which means that 4 independent variables only can describe and

89 affecting 30.6% about Revitalization of Brand Image of Low Cost Airline in Indonesia and the rest of 69.4% is explained or describe by another factors which not discussed in this research.

4.2.6 The New Frameworks Figure 4.36 The New Frameworks

Advertising Communications

X1

x4 Third Brand Image Warranty Party Revitalization Appraisals x2 Programs

x3

Reliability Aspects

Source: SPSS 16.0 and Self-Developed Primary Data The new framework is constructed based on the new latent factors that had been analyzed through factor analysis. At the first time, researcher

4.3 Interpretation of Results

4.3.1 Advertising Communication (X1) toward Revitalization of Brand Image of Low Cost Airline in Indonesia According to the T test and F test results, showed that advertising communications variable is categorized as variable that can influence the

90 revitalization of brand image of low cost airline in Indonesia and it has the most significance affect towards the revitalization of brand image.

The T value of advertising communications variable in T test table is the highest compare with other t value of other independent variables. The t value is 5.967 which mean that it strongest in influencing the revitalization of brand image of low cost airline in Indonesia and the significance value of physical evidence is 0.000 less than 0.05, means that it significance affect the revitalization of brand image.

Based on above statements and related with the questionnaire in advertising communications part, it showed that consumer or Indonesian will prefer to consume Airline which has a good advertising which can give them more fancy, unique or special feeling than other airline. It showed that advertising communication variable is the most important variable which concerned by Indonesians.

4.3.2 Warranty Programs (X2) toward Revitalization of Brand Image of Low Cost Airline in Indonesia

According to the result of T-test and F-test, Warranty Program (X2) variable is influence and significant toward the Revitalization of Brand Image of Low Cost Airline in Indonesia. The T value of Warranty Program variable in T test table is 2.211which means that every increase of Warranty Programs (X2) such as improvement on (warranty system, offering a very convenient repair or replacement service and comprehensive warranty) will lead to increase of Revitalization of Brand Image of Low Cost Airline Indonesia.

Based on statement above and related with the questionnaire in warranty programs part statement, it means the better quality of warranty programs of each low cost airline and offering a very convenient repair or replacement service will lead to the increasing of the revitalization of brand image of low cost airline in

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Indonesia. The results showed that Indonesian people will prefer to consume the service of airline which is the airline can offer the better of warranty programs.

4.3.3 Reliability Aspect (X3) toward Revitalization of Brand Image of Low Cost Airline in Indonesia. According to the result of T-test and F-test, reliability aspect (X3) variable is influence and significant toward the Revitalization of Brand Image of Low Cost Airline in Indonesia. The T value of reliability aspect variable in T test table is 3.146 which mean that every increasing in reliability aspect (X3) such as good service, will lead to increase of Revitalization of Brand Image of Low Cost Airline Indonesia.

Based on statement above and related with the questionnaire in reliability aspect statements, it means Indonesian people will give so much concern on airline whose give the best service such as error free records, on time and crews give best service to customer. These will lead to the increasing of the revitalization of brand image of low cost airline in Indonesia.

4.3.4 Third Party Appraisals (X4) toward Revitalization of Brand Image of Low Cost Airline in Indonesia

According to the result of T-test and F-test, third-party appraisals (X4) variable is influence and significant toward the Revitalization of Brand Image of Low Cost Airline in Indonesia. The T value of third party appraisals variable in T test table is 2.348 which mean that every increase of third-party appraisals (X4) such as good appraisal on magazines, newspaper, etc., will lead to increase of Revitalization of Brand Image of Low Cost Airline Indonesia.

Based on statement above and related with the questionnaire in third party appraisals statements, it means more and more positive appraisal from third party will lead to the increasing of the revitalization of brand image of low cost airline in Indonesia. The results showed that Indonesian people will prefer to consume

92 the service of airline which that the airline has so many good appraisal on third party.

4.3.5 Innovative Product Improvements toward Revitalization of Brand Image of Low Cost Airline in Indonesia. According to the T test and F test results, Innovative Product Improvements variable is categorized as variable that can influence towards Revitalization of Brand Image of Low Cost Airline Indonesia however it‟s not significance toward the Revitalization of Brand Image itself. It showed on the t value in T table which only reach 0.855 lower than influence toward the dependent variable and the significance value is 0.393 greater than 0.05 which means that Innovative Product Improvements is not significance toward the Revitalization of Brand Image

Based on above statement and related with questionnaire in Innovative Product Improvements part statements showed that the innovation of Airlines itself is not gives significance affect toward the revitalization of brand image and Indonesians don‟t really give concern if the airline innovated more than other airline.

4.3.6 Tangible Aspect toward Revitalization of Brand Image of Low Cost Airline in Indonesia. According to the T test and F test results, Tangible aspect variable is categorized as variable that can influence towards Revitalization of Brand Image of Low Cost Airline Indonesia however it‟s not significance toward the Revitalization of Brand Image itself. It showed on the t value in T table which only reach 0.668 lower than influence toward the dependent variable and the significance value is 0.504 greater than 0.05 which means that tangible aspect is not significance toward the Revitalization of Brand Image of Low Cost Airline Indonesia.

Based on above statement and related with questionnaire in tangible aspect part statements showed that Indonesian people do not give so much concern if the airline has more modern looking equipment or has better physical facilities than other competitors or not.

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CHAPTER V CONCLUSION AND RECOMMENDATION

In this chapter the researcher will presents the conclusion and recommendation which derived from the analysis in chapter four about the influence of warranty program, advertising communications, innovative product improvements, third party appraisal, tangible aspect and reliability aspect toward the Revitalization of Brand Image of Low Cost Airline in Indonesia.

This analysis is to know whether all the six independent variables have influence simultaneously toward the Revitalization of Brand Image and which factor of 6 independent variables that significant influence on the revitalization of brand image of low cost airline in Indonesia.

5.1 Conclusion

According to chapter four about the analysis of 6 independent variables towards the revitalization of brand image of low cost airline in Indonesia, here are some conclusions that researcher get as following:

1. According to the F test result which derived from chapter four, it showed that all independent variables has significance simultaneously influence toward the revitalization of brand image. It can be proven by look at the F value and significance value which F value and significance value which present that F value is 22.966 greater than 1.96 and significance value is 0.000 lower than 0.05

2. Second according to the T test result which delivered from chapter four showed that among 6 independent variables, only four independent variables which partially have significance affect toward the revitalization of brand image of low cost airline in Indonesia. These are the four independent variables which significance toward the dependent variable

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(Y), warranty program, advertising communications, third party appraisals and reliability aspect.

3. The last, according to the results and interpretation results that had been showed in chapter fourth, among all of the four independent variables advertising communications is the most significance independent variable which can give the most significance affect toward the revitalization of brand image of low cost airline in Indonesia.

5.2 Recommendation

Based on those conclusions drawn above and some finding in this study, there are some possible course of action may be identified. As stated in the chapter 4, there are four independent variables which have given significance toward the revitalization of brand image.

5.2.1 Company

The following recommendations are offered as guidelines or suggestion for consideration and possible application by Air Asia, Citilink, Lion Air and Tiger Mandala for their company. The following recommendations are made:

A. Advertising Communications

According to this research, advertising communication is the most significance variable which gives so much impact toward customers and the revitalization of brand image. Customers really give their attention to the advertising they saw. They can react favorably to the advertising, feeling the positive, happy and trust to the airline all because of advertising. That‟s why company really needs to give their attention toward their advertising.

1. Air Asia Indonesia

According to the results, Air Asia can be proud of their advertising communication, because more than one third 116 respondents feel positive and the rest feel neutral, toward Air Asia because of their advertising. But still, Air

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Asia needs to improve more and more their advertising teams and projects to increase their market and get more customers.

2. Citilink

According to the results, Citilink needs little bit to repair their advertising. Because among 28 respondents, more than half of them just feel neutral toward the advertising of Citilink. Citilink needs to give so much concern on this because Advertising Communications is the most significance variable which influences the brand revitalization.

3. Lion Air

According to the result, same with Air Asia, Lion Air can be proud of to their advertising communication, because more than one third 126 respondents said Lion Air‟s advertising is really good, they feel positive and happy to the company. But still, Lion Air needs to improve more and more their advertising teams and projects to increase their market and get more customers.

4 Tigerair Mandala

According to the results, Tiger Mandala is one of low cost airline in Indonesia which has good advertising. This can be seen from more than half of 30 respondents who choose Tiger Mandala agree if Tiger Mandala has good advertising and feel positive and happy toward the advertising.

B. Warranty Program

According to this research, the customer will choose to use airline which the company will give a good and comprehensive program for its warranty, such as refund reasonable if anything happened to the flight, fast language claim, protection, good and convenient repair or replacement service.

1 Air Asia Indonesia

According to the results, Air Asia little bit needs to repair their warranty program. Because among 116 respondents who chose Air Asia as a flight which they fly

96 most frequently, Almost half respondents feel neutral and only small portions who choose agree if Air Asia has good warranty program. Air Asia needs to concern about almost half and third respondents choose disagree if Air Asia has good warranty program.

2 Citilink

According to the results, Citilink can little bit breathing, because among 28 respondents who chose Citilink as a flight which they fly most frequently, Almost half respondents feel agree if Citilink has good warranty program. But still, Citilink needs to improve their warranty program to win the market.

3. Lion Air

According to the results, Lion Air really needs to repair their warranty program. Because among 126 respondents who chose Air Asia as a flight which they fly most frequently, Almost half respondents feel disagree if Lion Air has good warranty program. Lion Air needs to concern about this because the rest of respondents just feeling Neutral on Lion Air warranty system.

4 Tigerair Mandala

According to the results, Tiger Mandala can little bit breathing, because among 30 respondents who chose Tiger Mandala as a flight which they fly most frequently, Almost half respondents feel agree if Tiger Mandala has good warranty program. But still, Tiger Mandala needs to improve their warranty program to win the market.

C. Reliability Aspect

According to this research, the customer will choose to use airline which the company will give a good and comprehensive on their reliability aspects, such as the airline provides the service at the time of promised and the airline insist on free error records. Researcher believe if one of four company which can offer better on this aspect than the competitors, they will win heart of Indonesian

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People, because Indonesian people will use the airplane which can delivered good services to their customer.

1 Air Asia Indonesia

From the data, almost half among 116 respondents agree if Air Asia is the airline which insist on error free records and will provides the service at the time of promised. This is such a promising result for Air Asia to always keeping their performance well. Air Asia still need to improve this aspect so Air Asia can win the market.

2 Citilink

From the data, almost half among 28 respondents agree if Citilink is the airline which insist on error free records and will provides the service at the time of promised. Citilink still need to improve more this service aspect so Citilink can win the market.

3 Lion Air

From the data, Lion Air is company which given so much attention from the 126 respondents on their service. Lion Air is airline which has the lowest score on error free records; so many respondents said Lion Air often got in the incident and accident.

Then, Lion Air is the lowest score on airline which can provides the service at the time of promised. Respondents said flight of Lion Air often got delay. Lion Air really needs to concern about their service aspect. Because good service will give positive images toward the company

4 Tigerair Mandala

According to the result, Tiger Mandala needs to give concern on their reliability aspect. One third of 30 respondents disagree if Tiger Mandala provides service at the time promised and insists on free error records. But the rest of respondent believe that Tigerair Mandala has been delivered good on the service.

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D. Third Party Appraisals

According to the result, a third-party appraisal is one of significance variable which will give impact to customer and the revitalization of brand image. Customer gives their attention toward the appraisal from third party in magazines, newspaper, etc.

Because customer will give their assessment toward the company can be from what they read. If there are so many appraisals from the third party, it will increase company brand image in the eye of customer. So company needs to give attention for anything in internal and external.

1 Air Asia Indonesia

According to the results, more than half among 116 respondents agree if Air Asia has a lot of good appraisal and assessment from third party such as magazine, etc.

2 Citilink

According to the results, more than half among 28 respondents agree if Citilink has good appraisal from third party. But still Citilink needs to concern about one seventh respondents who strongly disagree to this variable.

3 Lion Air

According to the results, Lion Air needs to concern about their safety and security systems. As so many references said, Lion Air has a lot of incidents and accident which make a lot of bad appraisals from third party. Because based on the data, half of 126 respondents chose to be neutral and the portion of agree and disagree toward this is almost same.

4 Tigerair Mandala

According to the results, more than half among 30 respondents agree if Tiger Mandala has a lot of good appraisal and assessment from third party such as in magazine, newspaper, etc.

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E. Innovative Product Improvements

For the innovative product improvements variable, according to the results is not significance toward the revitalization of brand image however this variable still influence toward the revitalization. Therefore based on the result, the researcher still would like to recommend of four low cost airlines to innovated more and more so it will become the important factors that customer will give more attention to, so that this independent variable can become significance.

F. Tangible Aspects

For the tangible aspects variable, according to the results is not significance toward the revitalization of brand image however this variable still influence toward the revitalization. Therefore based on the result, the researcher still would like to recommend of four low cost airlines to always take care of the airline, so it will become the important factors that customer will give more attention to, so that this independent variable can become significance.

By doing all of those recommendation, it hopes that it can works fully as it showed that in adjusted R square table showed that the six independent variables is only able to describe and affect toward the revitalization of brand image about 30.6%. however by maintain the those four significance variables (warranty programs, advertising communications, third-party appraisals, reliability aspects) and improving those influence variables (innovative product improvements and tangible aspects) it will makes all independent variable able to affect more toward the revitalization of brand image of low cost airline in Indonesia

5.2.2 The Future Researchers I recommend the future researcher to find the other independent variables which can influence the revitalization of brand images and to fulfill the rest of 69.4% model summary. The future researchers can research about the other model of business airline models, full service airlines or other transportations such as bus, train, and cruise ship.

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APPENDICES

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APPENDIX I QUESTIONNAIRE

My name is Hendy Febiansyah. I have been studying in the field of International Business at President University in Jababeka, Cikarang, Bekasi. I am conducting a research to obtain my Bachelor Degree. I would like to get some information about general characteristics and how you perceive low cost airlines in Indonesia. I would be very grateful if you fill out the questionnaire in order to complete the research process.

Please fill (v) in this questionnaire by marking the appropriate item

Screening Process 1. How many low cost airline brands from these brands have you been consumed?

More than One Only One

2. Which airline do you fly most frequently? AirAsia Mandala LionAir Citilink

3. How often do you travel with that (1.) airline Less than 3 times per year 4-7 times per year 8-11 times per year More than 12 times per year

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Brand Image SD D N A SA 4. I would prefer the product/ service of this low cost airline brand more than I would before 5. This low cost airline brand has a stronger brand image than it did before 6. The image of this low cost airline brand is more consistent than it once was

Revitalization Factors A. Warranty Programs 7. This low cost airline brand offers an outstanding warranty (ex. Refund reasonable, fast luggage claim, reasonable, etc.) 8. This low cost airline brand offers a very convenient repair or replacement service 9. I believe this low cost airline brand offers a comprehensive warranty

B. Advertising Communications 10. I like the advertising of this low cost airline brand 11. I react favorably to the advertising of this low cost airline brand 12. I feel positive toward the advertising of this low cost airline brand 13. The advertising of this low cost airline brand is good 14. The advertising of this low cost airline brand does a good job 15. I am happy with the advertising of this low cost

109 airline brand

C. Innovative Product Improvements 16. This low cost airline brand is known for being innovative 17. This low cost airline brand frequently introduces more innovations than its competitors 18. I find this low cost airline brand‟s innovations to be more delightful than its competitors 19. This low cost airline brand provides many channel to buy the ticket

D. Third-Party Appraisals 20. There has been any type of positive third party appraisal of the brand that you aware of (Consumer magazines, news reports, etc.) 21. I react favorably to the positive third-party appraisal of this low cost airline brand 22. The positive third-party appraisal made me want to try this low cost airline

E. 5 Dimensional Aspects

23. The airline has modern looking equipment 24. The airline has good physical facilities 25. The airline and crews have sincere interest in solving customer‟s problem 26. The airline provides the service at the time of promised 27. The airline insists on error free records 28. Crews will give prompt service to customer

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29. The behavior of crews will give confidence in customers 30. Customers will feel safe in transactions

Personal Details 1. Name : 2. Gender : Male Female

3. Age : 15-20 Years 21-30 Years >51 Years 31-40 Years 41-50 Years

4. Education : High School or below Diploma Bachelor Degree Master Degree or higher

5. Income Level per Month (million IDR) : < 2 Million IDR 2 – 3 Million IDR >10 Million IDR 3 – 5 Million IDR 5 – 10 Million IDR

- Thank You-

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APPENDIX II

TOTAL VARIANCE EXPLAINED

Total Variance Explained

Extraction Sums of Squared Rotation Sums of Squared Initial Eigenvalues Loadings Loadings

% of Cumulative % of Cumulative % of Cumulative Component Total Variance % Total Variance % Total Variance %

1 5.425 28.554 28.554 5.425 28.554 28.554 2.961 15.585 15.585

2 2.046 10.768 39.323 2.046 10.768 39.323 2.286 12.034 27.618

3 1.690 8.897 48.219 1.690 8.897 48.219 2.120 11.158 38.777

4 1.550 8.159 56.379 1.550 8.159 56.379 2.010 10.579 49.356

5 1.304 6.865 63.244 1.304 6.865 63.244 1.958 10.305 59.660

6 1.207 6.354 69.598 1.207 6.354 69.598 1.888 9.938 69.598

7 .830 4.370 73.968

8 .708 3.728 77.696

9 .636 3.348 81.044

10 .611 3.216 84.260

11 .485 2.550 86.810

12 .430 2.261 89.070

13 .410 2.158 91.229

14 .369 1.941 93.169

15 .323 1.701 94.870

16 .279 1.470 96.340

17 .249 1.309 97.649

18 .233 1.227 98.876

19 .214 1.124 100.000

Extraction Method: Principal Component Analysis.

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APPENDIX III

ROTATED COMPONENT MATRIX

Rotated Component Matrixa

Component

1 2 3 4 5 6 a6 .760 a2 .759 a3 .714 a5 .705 a4 .555 w2 .865 w1 .768 w3 .760 i2 .840 i3 .803 i1 .653 p4 .824 p5 .782 p6 .614 t3 .782 t2 .715 t1 .708 p2 .780 p1 .777

Extraction Method: Principal Component Analysis. Rotation Method: Varimax with Kaiser Normalization. a. Rotation converged in 7 iterations.

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