A Business Model of Low Cost Carrier in Indonesia (The Influence of Perceived Advertising Spending and Price Deals on Brand)


This research aims to analyze the influence of the elements of marketing communication mix, especially the influence of advertising as seen from the perspective of the consumer (perceive advertising spending) and price deals on brand equity. Measurements were taken from the research variables by determining how much the relationship between variables. Descriptive analysis is used to see the profile picture of the user respondents AirAsia flight services. Verification analysis is used to test the hypothesis by using Structural Equation Modeling (SEM). The unit of analysis is the LCC passengers Indonesia AirAsia flight services. The number of samples selected in groups (clusters). The selection of a simple random sample were 105 questionnaires. Analysis of the results showed that there is a positive and significant relationship between perceived advertising spending on brand equity. In contrast to the variable price deals showed a negative relationship to brand equity. This research concludes that the consumer perspective to ads (advertising) is spent by the company in a significantly positive effect. Perceive advertising spending is then measured and shows can increase brand equity AirAsia. Conversely, price deals do not significantly affect on AIRASIA Brand Equity.

Author Information
Wilhelmus Limayadi, Catholic University of Atmajaya, Indonesia
A.Y Agung Nugroho, Catholic University of Atmajaya, Jakarta

Paper Information
Conference: ACBPP2015
Stream: Business – L – Industrial Organization

This paper is part of the ACBPP2015 Conference Proceedings (View)
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Posted by James Alexander Gordon