Proceedings of the 25th International Academic Conference, OECD Headquarters, Paris

THE EFFECT OF CORPORATE REPUTATION ON COMMITMENT, TRUST, AND LOYALTY AND ITS IMPACT ON CUSTOMER BEHAVIOR OF GARUDA INDONESIA AIRLINE PASSENGERS IN BANDA ACEH, INDONESIA

MIRZA TABRANI, MUSLIM ABDUL DJALIL

Abstract:

The objective of this research is to investigate the influence of corporate reputation on commitment, trust and loyalty and its impact on customer behavior of Garuda Indonesian Airline’s passengers in Banda Aceh, Indonesia. The respondents are the Garuda passengers which are selected by using non-probability sampling procedures. SEM analytical model is employed with Amos as its statistical software. The results showed that corporate reputation has a positive effect on commitment, trust, and loyalty; and commitment, trust and loyalty have a positive affect on customer behavior; commitment, trust, and loyalty mediate the relationship between the company's reputation and customer behavior. The originality of this study is the combined using of three intervening variables of commitment, trust, and loyalty to investigate the relationship between corporate reputation and consumer behavior in the context of airline industry as a conceptual research as far as the researcher’s concerned. This would contribute to the development of consumer behavior knowledge. The limitations of this research are that it does not capture a deep picture of the consumer behavior in the designated airline industry in Indonesia and varied education of pasengers which may have led to a biased response of questionnaire’s items.

Keywords: Corporate Reputation, Commitment, Trust, Loyalty, Customer Behavior

DOI: 10.20472/IAC.2016.025.056

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