PROPOSED MARKETING STRATEGY TO INCREASE PT KERETA API INDONESIA (PERSERO) CUSTOMER LOYALTY FOR BANDUNG – YOGYAKARTA ROUTE DURING PANDEMIC

• Main Author: Egayulia Nurhaliza, Putri
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/68097
• Institution: Institut Teknologi Bandung

The Covid-19 pandemic posed a global threat to people’s health and it forced the government to take action to reduce the disease from spreading wider. The Indonesian government created regulations such as lockdowns and travel restrictions to deal with this outbreak. Public spaces, such as schools, offices, and malls, were temporarily closed and people were advised to stay at home. These regulations highly affect the transportation industry, especially the public transportation sector. PT Kereta Api Indonesia (Persero) or KAI, as the only public train service provider in Indonesia, was not an exception. Before the pandemic, the occupancy for Bandung – Yogyakarta train route was on its peak. However, it decreased significantly in 2020 and 2021 even when the restriction was loosened. This study aims to analyze the company’s external and internal condition, identify which factors affect customers loyalty during pandemic, and propose marketing strategy to maintain and increase KAI’s customer loyalty for Bandung – Yogyakarta route. The external analysis was conducted by using PESTLE, Porter’s Five Forces, and consumer analysis. The consumer analysis was carried out by distributing questionnaire through online platform and processing the result using PLS-SEM method to identify the relationship between tangibles, responsiveness, reliability, assurance, empathy, Covid-19 protocols, service quality, customer satisfaction, and customer loyalty. The internal analysis was conducted by using VRIO framework, STP analysis, and 7P marketing mix. The result from external analysis and internal analysis was combined for SWOT analysis. The result from SWOT analysis was used in TOWS matrix to formulate alternative strategies to increase KAI’s customer loyalty.