“HOW IMPORTANT TO BUILD THE LUXURIOUS COMMERCIAL AREA FOR THE AIRPORT?”

16 Desember 2012

Group    : 6

Chief         : Rizky Inayah                 224110220

Member  :

Sekar Wisyastuti P       224110046

Novia Cahya Syafitri   224110225

Nursery Alfaridi            224110046

 Kelas ZU’10

BACKGROUND

People’s mobility nowadays is developing rapidly so they need everything fast. This is the reason why do the people use the aircraft as their alternative transportation especially for the air transportation. Therefore, the airport provides so many facilities for the passengers’ amenities.

However, there are some situations which will cause them trapped into the airport. This matter exactly makes them feel uncomfortable being in this place. One of the reasons of those circumstances is delay or transit time that takes a long time for the passengers. So, the airport that takes the responsibility of every passengers provides the support facilities in order to comfort them while they are waiting for the time in the airport. It also gives the value added for the airport and of course an extra income.

These support facilities include the commercial area of the airport. Commercial area is one of the attractions in this place. This area is the most favourite place in the airport for the passengers because it has so many interesting spots such as restaurant, shopping mall, even there are game station, cinema, or casino in cetain airports as their commercial area.

Now, the airports are developing their commercial area in order to increase the amount of the visitors. Not only as a support facilities at the airport, this area can also levels up the airport’s prestige and also increasing the airport’s income.

The commercial area development itself needs a well plan along with a big enough cost. So its space, funds and layouts has to be adjusted well to make this place useful for the passengers’ needs.

That are the reasons why do we take this problems to our research, with the importance of the commercial area development at the airport as the main point and to know what are the effects for the airport to develop its commercial area luxuriously as our research purpose.

THEORY BASE

According to Valarie A. Zeithamldan Mary Jo Bitner (2003:3), the definition of service is “Include all economic activities whose output is not a physical product or construction, is generally consumed at the time it is produced, and provides added value in from (such as convenience, amusement, timeliness, comfort, or health) that are essentially intangible concerns of its frist purchaser”.

Airport is a place where the air transportation services are given. It also being a part of national and international air transportation service systems to be in favor of the passengers’ needs. So, it provides many facilities which has been included in Peraturan Direktur Jenderal Perhubungan Udara Nomor : Skep/ 47/ III/ 2007 Tentang Petunjuk Pelaksanaan Usaha Kegiatan Penunjang Bandar Udara Pasal 2 Ayat 1 dan 2 (b). It describes the supporting activities in the airport are:

–        Hotel reservation services in the airport

–        Shopping space lease services in the airport

–        Restaurant, bank, money changer space lease in the airport

There are also PP Nomor 70 Tahun 2001 which explains that the airport activity suppoting services are being done by a certain party.

In this global era, there are so many commercial areas in a certain national or international airport are built excessively. Besides to add more value, the commercial area development is also needed for passengers necessity fulfillness and for business sake.

This business concept of elaborating the services has a unique attraction of the product and service. It can be a standard for the other airport administrators and the entrepreneurs in making the commercial area as unique and luxurious as possible to appeal consumers. Moreover, this area is the most interesting place to visit in the airport. But is that a big deal to build such a prestige commercial area whereas we know that it will costs a big mount of money.

RESEARCH METHODOLOGY

Our research has a scope of research that focuses on the assessment of how important commercial area built luxuriously for the airport.

In this case, we choosed some of the research methodology. One of them is a method of data collection. The method of using primary data is by conducting a survey to respondents who often use commercial area at the airport. Primary data in this case is the data that is retrieved from the answers of the respondents are examined, namely in the form of opinions or data about the phenomenon of an object.

In addition, we also use the sample withdrawal method, which consists of a questionnaire and documentation. The questionnaire was distributed online via docs.google.com or indirect, as well as offline or in person. Whereas the documentation is a technique of collecting data in a way to see, read, observe and manipulate data to support this research.

Other method that we use is descriptive research method. This method aims to explain the influence of the commercial area development in an airport which can be used by the airport to gain an advantage. It is exercised by  formulating and interpreting the data so that can provide a clear description about the research that we do.

 

THE ANALYSIS RESULTS

In this study, based on the overall data obtained from 98 respondents, said that the commercial area at the airport is needed to be developed and its facilities also have to be added because some passengers have experienced a delay so they need a commercial area as one of the place that can be used for them to wait until they can go on board.

There also some respondents who claimed that the commercial area at the airport is uncomfortable and unsatisfying. That is one of the reasons why do this area is needed to be developed. So that, the commercial area could become the icon of an airport and also for the country where that airport is.

Some of these causes can give some impacts to an airport when they are developing their commercial area. One of them is to improve the passenger movement. The more atractive that the commercial area is, more passengers will come to that airport. For example Changi Airport, Singapore. People come to the airport just for shopping in its commercial area, so that beside they can increase the passenger movement, they can also earn much income either it is an aeronautical or non-aeronautical income.

And by developing commercial area at the airport, they can also improve the airport’s image. The facilities management at an airport should managed well, so it can provides and enhances a good airport image.

As we can seen from the economic sector, the development of this area can also be influential. This is because there will be many businesses that are established in that airport and it will increases the number of entrepreneurs. A large number of entrepreneurs can make the Government increasing the income taxes, so that it will indirectly makes a good impact for the Government as well.

Commercial area at the airport has to be developed and added some interesting facilities. However, the development of a luxury commercial area is not required, it will just burden more costs for the airport.

THE RESEARCH RESULT

This Chapter 4 explains about the research results that have been taken by the survey titled “How important to build the luxurious commercial area for the airport?”. The results of the research are done by using the method of data collection that is conducting a survey to respondents who often use commercial area at the airport. We also use the method of withdrawal of sample from the questionnaires and documentation.

From the data obtained, we formulate and interpret data using tables and graphs to show the results of this research. Based on the results of the survey that we did, the resulting data is as follows:

The Profile of Respondents

Age

Based on the results of the primary data processing, can be known that the age of the respondents is in the table as follows:

Table 4.1

The Criteria of Age

Frequency

Percentage

Teenager (13-17 year old)

8

8%

Adult (> 17 year old)

90

92%

TOTAL

98

97%

Diagram 4.1 Diagram of Age

Image

Nationality

Based on the data primary processing, it can be reported that those respondents nationality is as it seems at table below:

Table 4.2

Nationality

Frequency

Percentage

Indonesian

96

98%

Others Nationality

2

2%

TOTAL

96

100%

Diagram 4.2 Nationality

Image

Gender

Based on the data primary processing, the respondents’ gender is in the table as follows:

Table 4.3

Gender

Frequency

Percentage

Male

34

35%

Female

64

65%

TOTAL

98

100%

Diagram 4.3 Diagram of Respondents’ Gender

Image

Frequency

Based on the results of the primary data processing, the frequency visits of the respondents to the airport is as shown in the following table:

Table 4.4

Frequency

Quantity

Percentage

Once

7

7%

Seldom

68

69%

Frequently

23

23%

TOTAL

98

100%

Diagram 4.4 Diagram Based on the Frequency

Image

 

SURVEY DATA RESULTS

The results of the questionnaire answers which are submitted to the respondents show that the percentage of 17 questionnaires, both the questions and the statements, are the description of the data results of each question or statement.

First questionnaire was about the experience of the respondents who had visited the airport. It has 98%. The respondents said “Ever” which means most of the respondents have visited to the airport.

Questionnaire 2 is about the experience of respondents who had experienced a flight delay. 53% of respondents said “Never” which means the most of the respondents had never experienced flight delays.

Questionnaire 3 is about the experience of respondents when they spend time while waiting for delayed planes. 70% of respondents choosed “Playing with the gadget” which means the majority of respondents prefer playing gadgets to come to seeing the commercial area, because it is easy and do not spend a lot of money.

Image

Questionnaire 4 is about the opinions of respondents to assess commercial facilities in the area nowadays. 56% of respondents said “Ordinary” meaning that the majority of respondents have little attention to the commercial facilities area at this time because their main goal is to go to the airport only to board the aircraft.

Image

Questionnaire 5 is a statement about the respondents to assess that commercial area could be an icon (image) for the airport itself. 76% of respondents said “Agree” which means the majority of respondents assess that the commercial area could be an icon (image) airport.

Questionnaire 6 is about the comfort of the respondents when they are in the commercial area. 64% of respondents said “Ordinary” meaning that the majority of respondents do not really care when they are in the commercial area.

Questionnaire 7 is about the opinion of the respondents to assess the needs of the facilities and entertainment venues augment in the commercial area. 72% of respondents said “Need”, meaning that the majority of respondents felt that facilities and entertainment venues in the commercial area should be developed.

Image

Questionnaire 8 is the opinion of the respondents to assess what facilities are needed to be added in the commercial area nowadays. 30% of respondents said “No” meaning that the majority of respondents want that the facility in a commercial area can be added in order to add some facilities which are not exist in the area.

Image

Questionnaire 9 is a statement to the respondents to assess the entertainment venues in the commercial area at the airport. 60% of respondents said “Agree”. This means the majority of respondents felt the entertainment in the commercial area is a plus for the airport because it can increase the income for the airport.

Image

Questionnaire 10 is about the opinion of the respondents in developing commercial area that will increase the movement of passengers at the airport. 69% of respondents said “Yes” meaning that the majority of respondents considered that the development of a commercial area can increase the level of consumers’ satisfaction to make them continue to use the airport and to increase the movement of passengers at the airport.

Image

Questionnaire 11 is about the opinions of respondents’ satisfaction that use the existing facilities in the commercial area. 85% of respondents expressed “Ordinary”. It means the majority of respondents are not satisfied with the current situation of the facilities in commercial area.

EXECUTIVE SUMMARY

Based on the results of our research about “How important to build the luxurious commercial area for the airport?”, we can conclude that commercial area at the airport should be developed and its facilities also have to be added. However, the development of a luxurious commercial area is not really needed because the development needs the plans and the capital intensive.

One of the methods that we use in this research is the withdrawal method. It takes the sample of the questionnaire which will states the results of the survey data that we did. It states that  the most of the respondents want this area has an adequate facilities and makes it convenient for its users. They do not really want a luxurious commercial area.

This is because for some passengers who have ever experienced delays, this area is urgently needed as one of the places that they can used to wait at the airport. It also can earns more income besides the flight activity income. In addition, many respondents said that commercial area facilities in the airport are unattractive and less convenience. The satisfaction in that area is also one of the causes of an airport needs to develop its commercial area. Therefore, the area at the airport should be developed in such a way, but the development does not need to be too luxurious, because it will add greater costs for the airport.

RECOMMENDATION

Most of the consumers want the commercial area facilities in the airport continue to be developed, but the consumers do not assume the development is too luxuriously built. Based on these conclusions, there are some suggestions that can be useful for every commercial area at the airport as well as below:

  1. As we can see from the results of research, it is recommended that the management at every airports increasing the innovation in terms of doing improvements and provide facilities that focused on consumer convenience.
  2. It is also recommended that the management of the airport and the entrepreneurs who have a business in the commercial area should improve their business and technology management so that it can grows the high competitiveness and high level of the consumers convenience towards the commercial area facilities. There is no relationship between luxurious facilities with consumer convenience issues if both of parties carry out their duties well and still consider the optimization of the utility facilities in the commercial itself. In this way the commercial area facilities will be able to develop according to the needs of the community.
  3. It is also recommended that the management of airport manager especially for commercial area to make some cost savings in the use of financial resources during the development of commercial area. If the construction and development of commercial areas are luxury but forgetting the main purpose of the airport, it will be only waste the cost to the entrepreneur so it will burdens them because of the high cost of maintenance and repair of the facilities.
  4. It is also recommended that the management of the airport managers and the entrepreneurs should stop competition on the airport facilities and more focus on the maintenance and repair which aims to make the customers pleasant.
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S FSC LESS ENTHUSED BY THE PRESENCE OF LCC ? Part V. Conclusion

15 Desember 2012

Group: 1 (Task 5)
Chairman:
Netti Yuliarti (2241.10.176)
members:
Elparida Arni B (2241.10.133)
Claudia Kartika C (2241.10.163)
Class: S1 ZU10

 

CONCLUSION

After we conducted a series of surveys both online and offline, from the questions that we asked in the questionnaire, we can measure the level of air passenger preferences based on the answers they provide, including:

1. choosing to use the Full Service Carrier 25 people = 48%

Consists of:

– Businessman = 5 people

– Office workers = 15 people

– Lecturer = 3 people

– More = 2 people

By reason of traveling, as follows:

– Business travel = 5 people

– Others (official) = 15 people

– Reason families = 5 people

2. Choosing to use the Low Cost Carrier by 27 people = 52%

Consists of:

– Students = 22 people

– Other = 5 people

By reason of traveling, as follows:

– Vacationing = 20 people

– The reason the family = 7 people

We can draw the conclusion that passengers using the service of Low Cost Carrier, more than the passengers using the service of Full Service Carrier, but this does not mean that the public interest is reduced to this Full Services . But due to the emergence of Low Cost Carrier services system, airlines who operating in the Full Service Carrier, mapping their own market segments which are identified most coming from the businessmen community and office workers. This shows that the Full Service Carrier does have its own market. They tend to sell to the passengers themselves who choose to use business-class flights with various reasons such as prestige, range of services, convenience of flying, safety that is more assured, and so forth.

ADVICE/SUGGESTIONS

  • For Communities who use air transportation.

The public should elect the flying services that will be used is not based on the price of expensive tickets or cheap, but it should give priority to the need for safety of flight. Due to aviation safety is the most important thing. In addition, before using the services of an airline, whether full service airlines and low-cost airlines, consumers should find out as much as whether the airline in question has a good reputation in the eyes of its customers or otherwise. Because of the high and low price of the ticket does not guarantee the satisfaction gained by consumers.

  • For Full Service Airlines.

Companies must maintain the quality of service provided. Due to the quality of service is a priority of full service airlines, especially in the service of each touch point must be considered in detail as Full Fare Airline communicate directly with consumers. Because if it is seen from the results of questionnaires that have been filled, the community has agreed that service quality full flight fare well. This is an opportunity for companies to continuously improve customer satisfaction and loyalty.


15 Desember 2012

Group: 1 (Task 4)
Chairman:
Netti Yuliarti (2241.10.176)
members:
Elparida Arni B (2241.10.133)
Claudia Kartika C (2241.10.163)
Class: S1 ZU10

SURVEY REPORT

                 We have made a survey conducted by distributing questionnaires in the form of structured and unstructured questionnaires. In a structured questionnaire, the questions asked by some alternative answers (multiple choice) that have been determined by us. The questionnaire was distributed online. While the unstructured questionnaire, the questions were made in the form of essays, respondents are required to describe their thoughts in answer questionnaires. And a questionnaire was distributed offline. Forms of the data we collect is qualitative data, namely in the form of words or phrases such as questions that need answers. This survey was made to analyze the problems that are comparative to compare how the public interest against two (2) types of airline service, the Full Service Carriers and Low Cost Carrier. Total respondents that we can is by 52 respondents. We did the distribution of questionnaires since 2 October 2012 to 11 October 2012.

Below are the results from a recent survey:

age

job

freq travel

motif trip

respond

prefer

DATA ANALYSIS

 

From these data we have mentioned above, we will make an analysis that aims to determine how the public interest against the service Full Service Carrier with many emergence of Low Cost Carrier and what the underlying from the interest.

We analyze that, after many airline-emergence of a new airline with the concept of Low Cost Carrier or low cost airlines, many people who are resorting to using the service, but many are certain groups of people who remained loyal use Full Service Carrier. Underlying factors that according to our data including travel time, travel patterns, as well as underwriting travel expenses. Following review of our analysis:

If we want to use the service to fly with Low Cost Carrier, we have to make a reservation from a couple of months prior to travel. If time travel is sudden then we will not be able to make purchases of services. Because of low cost airlines rely heavily on their promotional strategies ahead of time before the scheduled flight performed, usually within a period of 3-6 months in advance. The closer with day of departure the ticket price will be more expensive. Therefore, the groups of people who tend to use the service to fly with Low Cost Carrier majority of students, who travel motive for a planned vacation. Since the holiday had been planned several months in advance, so that they will make a purchase at least 3 months prior to travel, and ticket prices will tend to be cheap. It is also based on the limited funds held by the student. They tend not to think about what kind of services they can receive, the most important basic services (destinations) could be fulfilled. While businessmen tend to keep using the service of Full Service Carrier, because the businessmen will travel on schedule that sometimes business or sudden nature cannot be planned in advance.

 


IS FSC LESS ENTHUSED BY THE PRESENCE OF LCC ? Part III. Research Methodology

15 Desember 2012

Group: 1 (Task 3)
Chairman:
Netti Yuliarti (2241.10.176)
members:
Elparida Arni B (2241.10.133)
Claudia Kartika C (2241.10.163)
Class: S1 ZU10

 

RESEARCH METHODOLOGY

 

The more widespread use of the concept of LCC (Low Cost Carier) by airline companies in Indonesia to make the concept of FSC (Full Service Carier) seemed a bit knocked out so we decided to examine the “DO FSC less attractive with the presence of LCCs? ‘. Regarding the background and the theoretical basis we have explained in previous studies. We will continue this research to develop a questionnaire to support the needs of data for research next.

In this case, we use a descriptive method to support the success of a recent survey. Using this method aims to see how the public interest against full service airlines. The survey is divided into two parts, the offline survey and online surveys. We made ​​10 essay questions for offline survey and 20 multiple-choice questions for online surveys.

The survey was conducted to review how the public interest against full service airlines, whether that interest is reduced as more widespread LCC (Low Cost Carier), or even FSC (Full Service Carier) has its own market. We chose businessmen, office workers, students and lecturers of STMT Trisakti, both men and women as a target survey as the most easily accessible and frequently travels by airplane.

In offline surveys, we conduct research directly to the expert / transportation professional (STMT Trisakti University Lecturers), so as to generate the data necessary research and actualization guaranteed. Implementation, realized by conducting interviews or question and answer directly to the expert / experienced transportation professionals on a full service airline and the Low Cost Carrier.

While in the online survey, we made a questionnaire on the site freeonlinesurveys.com.

In addition to using the site above, we are also distributing questionnaires via social networking sites such as facebook, twitter, and kaskus. Minimum target we have set is 30 respondents.


IS FSC LESS ENTHUSED BY THE PRESENCE OF LCC ? Part II. THEORETICAL

15 Desember 2012

Group: 1 (Task 2)
Chairman:
Netti Yuliarti (2241.10.176)
members:
Elparida Arni B (2241.10.133)
Claudia Kartika C (2241.10.163)
Class: S1 ZU10

 

The increasing demand of air transportation cause not only the upper class that requires this type transportation. The rise of the implementation strategy of the Low Cost Carrier aims to reach almost the entire community. Thus, the full service airline to be a bit marginalized. But if it remains consistent full-service market will still be there. According to the surveys we’ve done, here are some of the basic theory underlying the full service airlines:

 1. Theory of flight services

Article 97 paragraph 1 of Law No. 1 of 2009 states:

Services provided by the scheduled commercial air transport enterprises in carrying out its activities can be grouped in at least:

a. service with a maximum standard (full services);

b. service standards (medium services), or

c. minimum standards of service (no frills).

From the article it can be concluded that the Full Service Carrier Services is a service provided by the airlines maximum standards. “Maximum” means the service is given in full. Services include pre-flight services, in-flight and post-flight. So the service will be received by passengers before the flight that includes services (online services, customer complaint service, check-in process which is easy), during the flight (seating arrangements, food and drink, music, newspapers, magazines), and after  the flight (baggage, booking a hotel or taxi). Whereas in Low Cost Carrier, the passenger will receive only minimum service standards (basic services), by reducing the facilities provided to passengers, such as lack of catering, entertainment, and other additional facilities.

2. Theories related to cost

Supriyono (1999: 16), argued that the cost is a cost that is sacrificed or used in order to earn income (revenue) and will be used as a reduction of revenue.

From the definition, it can be said that, if the costs as low as possible, the profit obtained can be larger. In order to gain profit, the total income shall be reduced by the total cost .If in the reduction, the total cost is low, the positive difference obtained will be greater. This is what underlies the airline seeks to reduce their expenses, so that they can gain advantage by holding a maximum of Low Cost Carrier services. In the application of Full Service Carrier, although airlines do not do reduced cost, but in order to maximize revenue to cover operational expenses incurred, then this airline imposing a higher rate than the rates of Low Cost Carrier. Application of high tariffs also coupled with maximizing the quality of service provided to passengers, so despite high tariff does not mean full-service airline will lose passengers.

3. Price theory assumed quality

” …….. Setting a higher price for a product will make the consumer believe that the product of higher quality that can lead to sales and profits received bigger ……… “(Lincolin Arsyad, 2008).

Providing optimal services is usually accompanied by high prices. Just as Garuda Indonesia, every heard of this airline, always comes to mind is an expensive ticket prices but with premium facilities. Another case when we hear the name of Air Asia, then we think is a cheap ticket but did not get any food on the plane. Therefore, the pricing should be based on the value of a flight that could be felt by passengers.

4. Theory of flight safety

Article 1 number 48 of Law # 1 of 2009 mentions “Aviation Safety is a state of fulfillment of the requirements for safety in the use of airspace, aircraft, airports, air transport, air navigation, as well as supporting facilities and other public facilities.”

Aviation safety is a requirement that cannot be violated for any reason and in any condition. With high tariffs imposed in Full Service Carrier, not only gained additional passenger facilities, but also to the safety of flight, as evidenced by the implementation of a large insurance fund for each passenger. While the Low Cost Carrier, elimination of additional facilities in addition to improving renevue, also for the budget airline owned by the company can be diverted to support flight safety assurance.


IS FSC LESS ENTHUSED BY THE PRESENCE OF LCC ? Part I. Introduction

15 Desember 2012

Group: 1 (Task 1)
Chairman:
Netti Yuliarti (2241.10.176)
members:
Elparida Arni B (2241.10.133)
Claudia Kartika C (2241.10.163)
Class: S1 ZU10

 

INTRODUCTION

 

Nowadays LCC is booming among the users of air transportation. Besides the ticket price is cheap but still give priority to the safety aspects are reasons why LCC is in great demand by the public. Although the LCC presented only minimal services, it is not become an obstacle for people to use LCC.

 

But that does not mean, by the LCC phenomenon, then the FSC (Full Service Carrier) is not desirable. Instead the growth of aviation business in Indonesia with full service, recently increased. Many new players are starting to enter the market for full service that is only controlled by the airline Garuda Indonesia. Just call it Pacific Royale Airways is the first private airline in Indonesia to serve a full-service which has made its debut flight in some cities on June 11, 2012.

Although LCC services tend to dominate the aviation market in Indonesia, but the existence of the FSC is still visible. Indonesia National Air Carriers Association (INACA) or the Association of Indonesian Civil Aviation, said FSC class is only holding a smaller portion that is only 20% of Indonesian aviation market, the remaining 80% controlled by the LCC market. However, if the full service airlines remain consistent in excellent service, the market is still there.

Therefore, we conducted a study on the existence of a full service airline in the onslaught of low-cost airlines (LCC) aims to review how the public interest in the full-service airline, whether that interest is reduced as the rise of LCCs, or even FSC has its own market that is still survive.

Sources :

http://travel.detik.com/read/2012/06/07/073202/1934929/1025/mulai-terbang-11-juni-pacific-royale-siap-gaet-traveler

http://www.bisnis.com/articles/pemain-full-service-pasar-penerbangan-bertambah


SOCIAL MEDIA AS AN AIRLINE’S TOOL FOR INTERACTION

15 Desember 2012

Kelompok      : 10

Ketua             : Rahmadya Karisma Haris (224110327)

Anggota         : Veronica (224110019)

Meyta Rezky Setiorini (224110101)

Sherly Septirani (224110224)

Kelas              : S1-ZU-10

INTRODUCTION

Information Technology is growing rapidly and has become a part of daily life. Almost all informations can be easily accessed by public. Not only the public but the company also has used information technology to make approach with its customers, because there is no doubt that information technology creates new spaces that allow users to expand the network and operations can help companies in achieving wider market share .

The role of technology is much needed in every field of transport, such as transport by land, sea and air. Social media is also being the attention of the airline because they found it easier to get closer to customer by providing an easy access to all the information. For example, Indonesia Air Asia using the other social media beside their own website, such as facebook and twitter.

Is using the social media can really create loyalty from customers to the airlines? Then do they feel helped by the presence of companies who use social media such as a forum to get the information they want quickly and easily?

In essence, people would prefer something that allows him to perform daily activities and easily accessible than a complicated thing. This tendency will form a habit of costumers that in their  daily life was already struggling with a lot of social media. Then the airline’s presence in social media is increasingly making customer feel easier and more comfortable when they want to access schedules, routes, promotions, and other things around on the airline through social media. Moreover, customer more freely express their comments and suggestions to the airline. The objective is obvious, that the airline wants a two-way communication and good interaction between them and their costumers. Refers to the phenomenon, we do the research that is intended to determine how much influence of SCRM implementation to the consumer loyalty level.

THE THEORETICAL BASIS

The company surely wants their costumers have a high level of loyalty to the company, it can be represented by repeat purchases undertaken by the customer to the company’s products, for which CRM is required. According to Storbacka and Lehtinen (2001:3) CRM is to build relationship strategies that refine relationship and thus increase their value. Companies in developing customer-oriented business culture-centric intended to win the hearts of consumers. Implementation of CRM also includes the company’s operational activities such as marketing, sales, and services, as well as for analysis of the exploitation of customer data to improve the performance of the company such as customer financial data, marketing data, and other data services.

Three phases of CRM by Kalakota and Robinson (2004:121) to be performed by the company are as follows:

1)    Acquire: acquire new customers by providing easy access to information, new innovations and exciting services.

2)    Enhance: Improve relationships with existing customers by providing good services to the customers (Customer Service). Application of cross selling or up selling the second phase could increase the company’s revenue and reduce the cost to acquire customers (Reduce Cost).

3)    Retain: retaining customers is the company’s efforts to gain customer loyalty by listening to our customers and strive to meet customer needs.

As the development of technology grows and so does the ability of communities to interact on social media, the traditional CRM had evolved into SCRM (Social Costumer Relationship Management). Social CRM is the approach taken by the company and supported by technology to help companies solve business problems in dealing and interacting with customers. Social CRM can be regarded as a major change in business approach to solving customer problems involving social media such as: twitter, facebook, or other social platform.

Social CRM is a philosophy and a business strategy, supported by a technology platform, business rules, workflow, processes and social characteristics, designed to engage the customer in a collaborative conversation in order to provide mutually beneficial value in a trusted and transparent business environment. It’s the company’s response to the customer’s ownership of the conversation.-Greenberg (2010:34 ),

Hence, by using the concept of Social CRM, there is a correlation between people (the public), process (how automation and CRM application), and technology (software and social media) that can affect customer loyalty.

RESEARCH METHOD

We use research methods: spreading questionnaires and doing interviews. Questionnaires and structured interviews conducted in this study created and developed based on variables that have been defined as people, process and technology. This research questionnaire contains many questions that will also identify the significance of these variables on the dependent variable we are customer loyalty characterized by repeat purchases.

Our target/respondents are all the internet users and the people who are not Internet users but use the other people to use the Internet for their interests. This online questionnaire then spreaded through twitter and facebook to respondents and structured interviews will be conducted with experts.

Our research type is descriptive research. Descriptive research is a type of researh that is undertaken in order to describe the characteristics of the variables of interest in a situation (Sekaran, 2006:158). The variables people are the man behind the account or social media page which is representative of the airlines the airlines or we can say administrator. Variable process is a form of interaction in the form of discussion and provision of information between the administrator and users. Variable technology is a media technology that bridges the interaction, in this case: social media Social-CRM activities undertaken by the airlines. Meanwhile, the dependent variable is customer loyalty, the indicators are repeat searches for information until repeat purchases ​​by costumer.

ANALYSIS

Respondent Characteristics by Sex

Based on the results of the questionnaire, the data obtained characteristics of respondents by sex. As many as 38% of respondents are men, while 62% are women. Although  most of our respondents are women, but the percentage gap is not too far.

jenis kelamin
Characteristics of Respondents by Age

Based on the results of the questionnaire, the data obtained characteristics of respondents by age. As many as 80% of respondents aged between 18-25 years. This means, most respondents considered a young age. As many as 13% of respondents aged 26-35. A total of 4% of respondents are under age 18. 3% of respondents are aged over 35 years.

 usia

Characteristics of Respondents by Jobs

Based on the results of the questionnaire, respondents characteristic data obtained by the job. Most of the respondents are students with percentage 71%. It means that the population we research are users who accessed the internet and social media are mostly the students. 25% of respondents have jobs as private sector employees. Respondents who have a job as a civil servant at 3% and the remaining 1% have other jobs.

pekerjaan

From the data we got that the intensity of Internet usage by 55% of our respondents stated they use it very often, followed by 35% of respondents stated frequently use the internet. Respondents who rarely use the internet are only 9%, and no respondents who have never used the internet. Other data we got from the questionnaire that we shared declared activities to access and find information about the airlines over the internet shows a relatively big difference that 88% of respondents claimed that they have accessed or found information about the airlines, while 12% have never accessed or searched for information about the airline. The data is consistent with our study that the use of the internet to search for information about the airlines are very often.

Analyzing variable ‘technology’ for the question items 1, 2 and 3, we obtained data that respondents frequently access the Internet and they ever used the internet to search for information about airlines, and social media accounts used by respondents to access information about the airlines: The airline website is the most selected media and used by respondents with a percentage of 80%. Twitter is used as a social media where respondents are using this to access information about the airlines showed as a percentage of 17%, whereas facebook is used by 3% of respondents.

media yang digunakan

Searching information through social media is easy to do, this is because social media has become part of people’s lifestyles, especially among the young who can easily access through the gadgets they own.

Analyzing variable ‘people’ for question number 4 about the latest information by admin of airline’s social media, question number 5 about admin responses, and question 8 about  admin’s language and words that are used in responsing to the customers, we found that respondents agree social media admins always provide the latest information and able to respond to costumer’s problems, suggestions, and complaints and also use polite language with each percentage exceeds 50%. This number of percentage is good. But from the question number 6 and 7 about variable people found that 58% of respondents said that the admin does not always respond and reply to questions from the customer, also by 68% of respondents stated that the admin is not quick in replying to a question from the customer. This means that the admin responds the customer although not all suggestions, questions, or complaints responded quickly.

Analyzing variable ‘process’ for the questions number 9, 10, and 11 are about the assessment of social media usage, the information that is searched about the airlines, and costumer’s opinions about information that is provided. Respondents showed that social media is an effective media for airlines to provide information. The information that is searched by respondents are : promo for 51%, followed by information about the flight fare with a percentage of 35%, schedules and routes by 14%. Respondents considered that the information provided through social media is helpful, it is indicated by the percentage of 90%.

 informasi yang dicari

Correlation between the variables people, process and technology

From the results we have collected, it appears that there is a relationship between people, process and technology. It was seen from the good response from the admin via social media can influence customers to make a purchase decision and make airlines as a customer preferences. Usage of technology; internet and social media are easily accessible from their gadget makes it easier to customer to search information about the airlines. Although the data by 59% of respondents do not conduct periodic information retrieval, but by 61% of respondents make a purchase and 67% of respondents make it as a preference to make airlines.

The decision to purchase

keputusan pembelian

Decision making airline as a preference

 menjadikan preferensi
So it can be seen that the three variables are related one another and give effects to consumers in making purchasing decisions that also affect customer loyalty.

CONCLUTION

From the survey results we got, we  conclude that people make it as a preference. It is because the routine provision of information through social media that make most of the customers who can easily access social media feel that the provision of this information is very helpful to them in knowing the latest information about the promo or flight schedules. Even though people do not always seek information regularly but the general public still make the purchase.

Although admin’s respond are not quick in response to their problems and do not always replying the input provided by the customer, the information from airlines through social media will influence customer decisions in making a purchase then make them buy the airline’s products, either normal flight fare or promotion of ticket. By making that airlines to be such a maket preference, indicating that the formation of customer loyalty.

ADVICE
Airlines: recommended for aviation enterprise to have an employee to serve as the permanent administrator in managing and responsible to social media that is owned by the airlines. The goal is if the customers need information about the airlines so that admin can reply and respond quickly so that the customers can quickly get the informations that they need.

Society: recommended for the public who use air transport as a derived demand for the needs, using social media is helpful to obtain information about promotion or other information from the airlines, because now the airlines have been using social media to be able to close the gap and to approach the community and expect two-way conversation that can enhance CSR’s airlines. Moreover, this is done so that the public is not being close-minded from the development of information technology to access all the information needed.


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