THE INFLUENCE OF REPUTATION AND CUSTOMER RELATIONSHIP MANAGEMENT (CRM) TOWARDS THE COMPETITIVE ADVANTAGE OF AIRLINES IN INDONESIA
Yhani Mardani, Ratih Hurriyati, Disman, Vanessa Gaffar

Universitas Pendidikan Indonesia

Abstract

One of the fastest growing transportation modes in Indonesia is air transportation. The air transportation market in Indonesia isexperiencing rapidgrowth. This leads to the increase in the number of airline passengers in almost all airports. However, the facts show that the competitive advantage of the industry hasnot been superior yet. These conditions are relatedto the issues in the development of reputation and customer relationship management (CRM). Hence, this study was done to examinethe influence of reputation and CRM towardsthe competitive advantage of the airline industry in Indonesia. This study employs quantitative approach by involving 100 passengers member from 5 different airlines namely Garuda, Lion air, Citilink, Batik Air and Air Asia as the samples. The data wasthen processed using the PLS statistical test tool.The results showedthat Reputation and CRM affectedthe competitive advantage both simultaneously and partially, in which reputation gavegreater impact than CRM. To conclude, competitive advantage in the airline industry in Indonesia wasdominantly more influenced by reputation than by CRM.

Keywords: Reputation, Customer Relationship Management, Competitive Advantage.

Topic: Marketing Management