Strategy to increase customer loyalty on indonesian railway

Abstract

Indonesian Railway is an effective mass transportation mode for long-distance or close-distance and accommodate all human activities. However, with the intense competition between other transportation modes, customer loyalty has an important role for increasing corporate's profits. Therefore, PT Kereta Api Indonesia needs a strong strategy to increase customer loyalty. To create such strategy, this research examines the impact of Service Quality, Corporate Image, Complaint Handing, Trust, Perceived Value, and Customer Satisfaction factors on customer loyalty by using SEM method. Importance-Satisfaction Analysis method is also used to obtain action items along with the execution priority of each action items. This research uses a study case in Indonesia, particularly in Java, on three objects, Executive Class, Business Class, and Economy Class. The research outcome can become a strategy for PT Kereta Api Indonesia in increasing customer loyalty, so that they can compete with other transportation modes in Indonesia.