Effects of Service Quality, Price and Promotion on Customers’ Purchase Decision of Traveloka Online Airline Tickets in Jakarta, Indonesia

Abstract

The growth of small businesses of airline tickets through online services in Indonesia is very rapid today. However, studies examining factors determining the customers’ purchase decision made towards the online airline tickets established by the small businesses in the country are not available yet, especially those studies published in high-caliber journals. For this reason, this study aims to examine the effects of service quality, airline ticket price and promotion on customers’ purchase decision of online airline ticket provided by the small business so called Traveloka company in Jakarta, Indonesia. The statistical method used to examine the above research question is by applying a multiple linear regression analysis. The model has one dependent variable that is customers’ purchase decision and three independent variables, namely, service quality, airline ticket price and promotion. Data were collected by using questionnaires distributed to 166 respondents of the online airline tickets customers of Traveloka in Jakarta. The statistical program to estimate the model is by using SPSS version 20. The study found that the online airline tickets services by Traveloka have been widely known by the respondents under survey. They also knew the way how Traveloka sells the online airline tickets to them. The study also found that service quality and airline ticket price have positive and significant effects on purchase decision made by the Traveloka’s costumers. However, the promotion variable has no significant effect on costumers’ purchase decision. Therefore, it is a must for Traveloka company to give great attention to improve the service quality and price in making the customers decided to buy the online airline tickets. Otherwise, the Traveloka’s customers will find other online airline tickets services. If this is the case, this condition will further mitigate the business profit that potentially is obtained by the Traveloka company. Thus, much remain to be done by the Traveloka company in order to sustain the value of the company.