The Effect of Word-of-Mouth on Purchase Intention: A Case Study of Low-Cost Carriers in Indonesia

This study aims at testing word-of-mouth (WOM) by mediating positive and negative perceptions of purchase intention on low-cost carriers (LCC) flights in Indonesia. One of the communications mixes that airlines can carry out is WOM. WOM is a form of communication between passengers after using a flight. The formation of a positive perception of WOM is expected by airlines. If a positive perception of WOM has formed, a purchase intention will arise. The study population included LCC flight passengers in Indonesia, involving 387 respondents. For indicators and variables, validity and reliability tests were conducted using CFA, CR, and AVE tools. Sampling locations were Soekarno-Hatta and Kualanamu airports. Sample collection was obtained through purposive sampling, and the analytical tool used was structural equation modeling (SEM) with Lisrel. The results showed that WOM influenced purchase intention through positive and negative perceptions of WOM. It can be seen that a positive perception of WOM has a direct effect, while a negative perception of WOM has the opposite effect. In conclusion, the mediation of perceptions influences purchase intention, whether it in the same direction or the opposite ones. To conclude, WOM is an antecedent for it influences purchase intention. KCI Citation Count: 0