THE IMPACT OF BRAND EQUITY AND PRICE TOWARDS CUSTOMER PURCHASE DECISION IN LOW COST AIRLINES (A CASE STUDY OF INDONESIA AIRASIA, JAKARTA – DENPASAR ROUTE) By Fazrul Rahman ID No. 014201200185 A skripsi presented to the Faculty of Business President University Inpartial fulfillment of the requirements for Bachelor Degree in Economics Majoring Management October 2016 PANEL OF EXAMINERS APPROVAL SHEET The panel of examiners declared that the skripsi entitled “THE IMPACT OF BRAND EQUITY AND PRICE TOWARDS COSTUMER PURCHASE DECISION IN LOW COST AIRLINES (A STUDY CASE OF INDONESIA AIRASIA, JAKARTA – DENPASAR ROUTE)” that was submitted by Fazrul Rahman majoring in Management from the Faculty of Business was assessed and approved to have passed the Oral Examinations on December 14, 2016. Miftah Zikri, M.Sc Chair – Panel of Examiners Dr. Ir. Yunita Ismail Masjud, M.Si Examiner 2 Filda Rahmiati, MBA Examiner 3 SKRIPSI ADVISER RECOMMENDATIONLETTER This skripsi entitled “THE IMPACT OF BRAND EQUITY AND PRICE TOWARD COSTUMER PURCHASE DECISION IN LOW COST AIRLINES (A STUDY CASE OF AIR ASIA INDONESIA IN JAKARTA – DENPASAR ROUTE)” prepared and submitted by Fazrul Rahman in partial fulfillment of the requirements for the degree of Bachelor in the Faculty of Business has been reviewed and found to have satisfied the requirements for a skripsi fit to be examined. I therefore recommend this skripsi for Oral Defense. Cikarang, Indonesia, December 14, 2016 Acknowledged by, Recommended by, Dr. Dra. Genoveva, M.M Miftah Zikri, M.Sc Head of Management Study Program Skripsi Adviser DECLARATION OF ORIGINALITY I declare that this skripsi, entitled “THE IMPACT OF BRAND EQUITY AND PRICE TOWARD COSTUMER PURCHASE DECISION IN LOW COST AIRLINES (A STUDY CASE OF INDONESIA AIRASIA, JAKARTA – DENPASAR ROUTE) is, to the best of my knowledge and beliefs, an original piece of work that has not been submitted, either in whole or in a part, to another university to obtain a degree. Cikarang, Indonesia, December 14, 2016 FazrulRahman ABSTRACT This research is aimed to analyze Brand Equity and Price toward Customer Purchase Decision that is measure through Brand Awareness, Brand Association, Perceived Quality, and Price with Customer Purchase Decision. Brand Equity and price can be referred to the result of branding strategy and promotion of implementation in Low Cost Airlines business operation for achieving a business growth. Methodology used in this research is quantitative approach with descriptive method by using primarily data and questionnaire is the research instrument. The sampling technique used is non-probability technique with accidental sampling method and the sample size is 200 respondents. Descriptive research and multiple regression analysis are adopted as tool for analysis in this research with significant level of 0.05. The result of research shows that Brand equity and Price has partially and simultaneously influence with Customer Purchase Decision and contribution of Brand Equity and Price toward Customer purchase Decision is shown by coefficient of determination value in which Brand Equity and Price has influence 71.3% on customer purchase decision, the rest 29.7 is influenced by other factor that are not included in this research such as Brand Loyalty and Promotion. Thus Brand Equity and Price result of Branding image implementation in low cost Airlines business operation has partially significant contribution to influence the Customer Purchase Decision of Customers in the market. Keyword: Low Cost Airlines, Brand Equity, Price, Purchase Decision, Branding strategy. ACKNOWLEDGEMENT “In The Name of ALLAH, The Most Gracious, The Most Merciful” Alhamulillahirabbilalamin, Praise and great gratitude submitted to almighty Allah SWT who always gives the writer gracious mercy and tremendous blessing that with the tears of happiness, the moment that I wait for a long time is finally come true. This is the moment that they have helped me to finishing this research entitled “The Impact of Brand Equity and Price Towards Customer Purchase Decision in Low Cost Airline (A Study Case of Indonesia AirAsia, Jakarta – Denpasar Route)”. This skripsi is arranged to fulfill the requirements for obtaining bachelor’s degree, in Management study program, Faculty of Business, President University. On this occasion with great humility, I would like to thank you to all of those who have given me help, contribution and guidance so that this skripsi can be finished. Completion of writing of this skripsi, the author would like to thank to: 1. Allah SWT with his blessing and merciful that allows me seeking precious knowledge up until higher level as well as has helped me to finish this skripsi. 2. My beloved parents Tetta and Mama for their love, as the best parents ever in this world and always pray, encouraging, giving material I needed, working hard, always trying to do the best, to support me and giving the happiness in my life, and always give me advices and motivation so I can finish my study. They are hero of my heart whom I will not regret in this life. 3. My brother and sister Annisa Fathir Rahman, Fazhluur Rahman, Sartika Fathir Rahman, Bagus Guntur Wibowo, and Mirna, thanks for your love and support and giving motivation for me during this skripsi and my study. 4. My Uncles, Aunties, and Cousins, thank you for helping, support and motivated me during my study. 5. My Thesis Adviser, Mr. Sonny Vinn Sutedjo, S.E., M.M as the greatest adviser that I know, thank you for your guidance, attention, patience and kindness during the process of writing and finishing this skripsi, Thanks for your good advice and valuable input. I’m so proud to have you as my skripsi adviser. 6. My Friendly lecturer, Mr. Orlando Santos MBA and Mrs. Genoveva, the person who always helps and inspires me gains knowledge in university life with simplest ways. Thanks for your guidance, care, time, and kindness; you are the best and friendliest lecturer ever. 7. Dearest my best Friends Asty Nur Utami, Septian Arya, Arham Rezkiawan, Muh. Erwin, Achmad Fauzan, Takalar Presuniv, Society Presuniv and Sliber TKL, thank you for your support during this skripsi and my study period, and thanks for being my family in last 4 years. 8. My fellow Jakarta Internship Team, Ilham Ridwani, Michael Tiopan, Zani Patria Akbar, Steven Boy, Christian Ebenheizer, Pradana Adlu, Miftahul Fikri, Dudi Afriyanaldi, Andra Martha, as the best friends for sharing the experiences from become Internship Employee until finishing my study. 9. Eldy, Fathur, Aidil, Jamal and the other Gaple team, thank you for your night life to playing Gaple during this skripsi, and your Acehnese accent that makes me always laughing. 10. Naga Hitam Riverside, thanks for being my family in my university life, thank you for your laughs, togetherness, and craziness. I hope our brotherhood will not give up until we are older. Keep in touch brader! 11. All of the lecturers who have given my precious insight, shaped critical mindset for me to be a sustainable leader in near future. All of you are indeed unique so that I can learn how to see a thing from different point of view. TABLE OF CONTENTS PANEL OF EXAMINERS APPROVAL SHEET ...................................................................................................... i DECLARATION OF ORIGINALITY .................................................................................................................... ii SKRIPSI ADVISERRECOMMENDATION LETTER .............................................................................................. iii ABSTRACT...................................................................................................................................................... iv ACKNOWLEDGEMENT ....................................................................................................................................v TABLE OF CONTENTS ................................................................................................................................... 8i LIST OF TABLES .............................................................................................................................................. ix LIST OF FIGURES ............................................................................................................................................. x CHAPTER I - INTRODUCTION ......................................................................................................................... 1 1.1. Background of the Study. ....................................................................... 1 1.2. Problem Identification. ........................................................................... 8 1.3. Statement of Problem. ............................................................................. 9 1.4. Research Objectives. ............................................................................... 9 1.5. Significance of Study. ............................................................................ 10 1.6. Scope and Limitation of the Study. ...................................................... 10 1.7. Definition of Terms. .............................................................................. 11 CHAPTER II – LITERATURE REVIEW ............................................................................................................. 12 2.1. Theoretical Review. ............................................................................... 12 2.2. Influence of Independent variables on Dependent variables.