ABSTRACT

The airline business is facing an increasing level of competition. In order to increase their sales volumes, marketers use sales promotions. Direct premium is one of the sales promotion techniques which can be categorized into two types; fit and non-fit direct premium. A direct premium will create positive attitudes toward the brand which ultimately affects the consumer’s purchase intentions. This study investigates the differences in consumers’ attitudes toward brands and purchase intention to do with the application of fit and non-fit direct premium, and its impact on consumers’ purchase intentions. Using an experimental design approach, this study focuses on hypothesis testing by using one way ANOVA analysis techniques and simple linear regression. The managerial implications and suggestions for future research will then be delivered.