Brand Distribution Service and Its Effect on Customer Value

Purpose - The purpose of the research is to further explore the understanding of the nature of the brand distribution service (i.e., service brand) by undertaking a quantitative investigation. We focus on the role of customer's perception of service brand on the customer value creation process. Research design, data, and methodology - This study used single cross-sectional design and 137 airline passengers as respondents using a convenience random sampling. We distributed the online questionnaires by email address. The empirical setting for this research is airline service in Indonesia with a consideration that airline service has the useful context for this research as the service delivery process involve extensive customer interactions with the airline and its employees. We then analyzed the data using multiple regression (step-wise) method to fulfill the research objectives. Results - Using the step-wise regression method, the result shows that the influential factors to create customer value are cost and company image. The result suggests a company to improve its costs components and its company image in order to increase the customer value. Conclusions - The research shows that costs play a critical role, and completed with the company image to form the customer value variable. This shows that mostly customer formed their value based on costs they sacrificed. Mainly, this evaluation is monetary cost based, while Indonesian customers tend to have a high value for money demands.