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How To Make Brand Trust To The English Language Institution in Kediri, East Java Indonesia Dian Utami Sutiksno, Saul Ronald Jacob Saleky, Nur Choirul Afif Universitas Padjadjaran, Universitas Hasanuddin, Universitas Padjadjaran Abstract Equally one of the requirements to be able to compete at the world-wide level is the domination of English as an international voice communication. However, Indonesia is among the countries that mastery level is relatively lower compared to other ASEAN countries, such as Malaysia and Singapore. These conditions form the Indonesian people to pursue an intensive English course in the area where they live. Viewing this as an opportunity, various English language institution courses started to pop up. But some people do not get the results as expected and are still looking for other colleges that are considered to have high quality teachings with affordable prices. Most people then choose Kampung Inggris as a place to learn English. Kampung Inggris is situated in Pare, Kediri. Every year the number of participants in Kampung Inggris continued to increase from year to year, with the number increasing land up. Qualifications of teaching staff, infrastructure, and management colleges in big cities is better than the village colleges in the Pare, Kediri. However, some participants still chose Kampung Inggris, as a place to learn English. The purpose of this study is to determine how the brand trust and brand affect influence on brand loyalty of various English Courses in Pare, Kediri. Based on the results of the research that has been done, brand trust has a positive and significant impact on brand loyalty institute courses, either simultaneously or partially. Similarly, brand affect positive and significant effect on brand loyalty both simultaneously and partially. These results demonstrate how the brand trust, brand loyalty of brand affect are able to explain the course of the institution. So that every marketer needs to give attention to both of these variables. Keywords : Brand trust, brand affect, brand loyalty , English language colleges

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How To Make Brand Trust To The English Language Institution in Kediri, East Java

Indonesia

Dian Utami Sutiksno, Saul Ronald Jacob Saleky, Nur Choirul Afif Universitas Padjadjaran, Universitas Hasanuddin, Universitas Padjadjaran

Abstract

Equally one of the requirements to be able to compete at the world-wide level is the domination of English as an

international voice communication. However, Indonesia is among the countries that mastery level is relatively lower

compared to other ASEAN countries, such as Malaysia and Singapore. These conditions form the Indonesian people to

pursue an intensive English course in the area where they live. Viewing this as an opportunity, various English language

institution courses started to pop up. But some people do not get the results as expected and are still looking for other

colleges that are considered to have high quality teachings with affordable prices. Most people then choose Kampung

Inggris as a place to learn English. Kampung Inggris is situated in Pare, Kediri. Every year the number of participants in

Kampung Inggris continued to increase from year to year, with the number increasing land up.

Qualifications of teaching staff, infrastructure, and management colleges in big cities is better than the village

colleges in the Pare, Kediri. However, some participants still chose Kampung Inggris, as a place to learn English. The purpose

of this study is to determine how the brand trust and brand affect influence on brand loyalty of various English Courses in

Pare, Kediri. Based on the results of the research that has been done, brand trust has a positive and significant impact on

brand loyalty institute courses, either simultaneously or partially. Similarly, brand affect positive and significant effect on

brand loyalty both simultaneously and partially. These results demonstrate how the brand trust, brand loyalty of brand

affect are able to explain the course of the institution. So that every marketer needs to give attention to both of these

variables.

Keywords : Brand trust, brand affect, brand loyalty , English language colleges

INTRODUCTION

Communication needs on a global level requires every individual is able to master a foreign language, especially English. Any

individual who wants to prepare themselves to enter the workforce or continue their studies to a higher level have a need

to get the services of qualified English language courses in order to have the competence to be able to communicate orally

and in writing in English. The competitiveness of a nation is determined one with mastery of English as an international

means of communication. Mastery of the English language will encourage someone to make contact with the outside world,

so it could establish cooperation, negotiation, and other things in an international context. A nation that is lacking in the

mastery of the English language will make them isolated from the outside world, because said nation will not be able to

take in a broad scope of developments in science nor able to associate nor interact at the international stage

As in 2013, out of 60 countries Indonesia was ranked 25t in the profiency of the English language. This results also put

Indonesia under the other ASEAN countries, such as Singapore and Malaysia. Meanwhile in Asia, the results of English

Proficiency Index ranks Indonesia in 6th place compared to other countries where English First (EF) open tutoring agencies

(English Proficiency Index in Asian countries; 2013). Thus, the ability to speak English in Indonesian society is still under

Malaysia and Singapore. Although still higher than other ASEAN countries, such as Vietnam. These conditions make both

public and business organizations in Indonesia, both private and state owned require English language skills of its workforce

by requiring the candidate attach a certificate of English language skills, including certificates such as TOEFL, GMAT and

IELTS as well. In addition, multinational companies generally also require the ability to speak English for the candidates of its

workforce, especially for middle-level and corporate recruitment. The need to improve the English language skills

encourages the opening of the English language colleges in various cities in Indonesia. Various awarded bid to capture

market opportunities. Even some of the Institute Courses have opened English courses use the services of the franchise

system as LIA, The British Institute (TBI), Real English and English First (EF).

Although various agencies have English courses available in various cities in Indonesia with qualification of the teaching staff

deemed competent, some English language learners are still experiencing difficulties in learning English with the existing

learning systems. The alleged difficulty is because of the very less frequency in learning, also with the environmentless

consucive to train language learners and the mismatch between the goals with the course that offered courses in

institutions where they live. This makes them look for an integrated English language colleges, with a level of frequency and

length of study is relatively high and the environment is conducive for learning. Most English language learners who have

not been able to resolve their problems and then select Kampung Inggris, as a place to learn English. By learning in

Kampung Inggris they hope their English proficiency would increased significantly.

Pare is a district in Kediri, East Java. When viewed from the profile area, Pare condition is not much different from other

small cities. But the interesting thing in this area is there are a lot of migrants from various regions in Indonesia live in Pare.

The number of migrants from various regions in the then small town attracts many investors to invest in the area, including

lodging business, travel agents, motor vehicle or bicycle rental, laundry, souvenir centers and souvenirs typical kediri,

restaurant and catering. In addition, the existence of this region encourage increased occupancy of railways, aircraft,

intercity bus, travel, and other means of transportation to and from this area. In addition, the arrival of the course

participants from various regions in Indonesia to Kampung Inggris encourages occupancy rate/occupancy transportation by

land, sea or air to and from Kampung Inggris. An increasing number of clients/students who have studied in Kampung

Inggris also have an impact on changes in land up in the region.

Arrival of participants from various regions in Indonesia, such as Aceh, Bangka Belitung, Palembang, Makassar, Manado,

Yogyakarta, Bandung, Jakarta and other areas to another area to learn the English language would be an interesting thing

that need to be investigated. Given the variety of the offer has been available in their local area by qualified teachers and

learning facilities better than the few colleges in the Kampung Inggris. At first, in Kampung Inggris there is only one

institution, namely the Basic English Course. With the increasing market demand and the growing recognition of Tulungrejo

Village and Palem as an integrated area for an English course, many entrepreneurs start entering courses in business English

language course. Based on the record of Forum Komunikasi Bahasa (Forum Communications Language) that houses a

variety of courses in the institution Pare, Kediri - East Java, there are more than 148 Institutions English course in this area.

It shows that the offer for English courses services continues to increase from year to year.

The main factor that makes the appeal of Kamping Inggis in Pare - Kediri is the existence of a variety of English language

colleges in the region. The existence of courses in Kampung Inggris institutions played a vital role to increase the number of

visits/arrival of guests from various regions in Indonesia into the area. The existence of hundreds of colleges in Kampung

Inggris gives consumers the option to purchase a variety of services English courses. Based on research by Hidayat et al

(2012), the number of students in the area of Kampung Inggris continues to increase from year 2000 to 2010. Above results

are confirmed by the results of a survey that researchers did, in the period 2013 January - April 2013 the number of

students in Kampung Inggris courses for 5 institutions, namely Global-E, Elfast, Mahesa, BEC, Mr.Bob and Daffodils reaching

more than 15,000 students. This does not include some of the colleges that have not been surveyed by the researchers,

which accounted for 124 courses institutions. The existence of Kampung Inggris in the village Tulungrejo, Pare, Kediri also

resulted in increased local revenue.

According to Hidayat (2011:12) there are 124 colleges in Kampung Inggris. Meanwhile, according to the Chairman of the

Forum Communication Language, there are 148 courses institutions registered in Kampung Inggris. However, based on the

results of observations made, only 7 colleges (Global-E, Elfast, Daffodils, Krishna, Mahesa, Mr.Bob, and BEC), which controls

more than 80% market share in the area of Kampung Inggris. These conditions indicates that the course from other

institutions that opened in Kampung Inggris region does not always make the participants have confidence in the brand

agencies even if the institution opened in Kampung Inggris. This phenomenon explains the number of more than 100

colleges in Kampung Inggris there are only 7 colleges which controls more than 80% market share of English language

courses in the area. It shows that the opening of the institution in the area of Kampung Inggris does not automatically make

the market has confidence in the brand (brand trust) colleges in Kampung Inggris.

Based on the results of the observations that have been made on February the 5th – 10th in 2013, showed that the majority

of the service fromthe course for participant institutions feel uncomfortable staying in the hostel /boarding house in the

area of Kampung Inggris. Where 3x3 meter room should be filled by a maximum of 2 people, can in fact be filled by 3 (three)

to 4 (four) people. Additionally in terms of security, some participants experienced loss of valuable items such as laptops,

mobile phones and wallet.

Each institution that offers promising English course attracts the participants of the English language courses, making the

collage participants to have high expectations of service products against the course, but according to Mrs. Tri Winarni, as

lead agency Krishna course (interview date 4 April 2013, at 11:50 pm) stated that the majority of the participants were

dissatisfied with the course of most institutions in Kampung Inggris. That is because colleges promises something beyond

their control, she stated that institutes offers courses in Kampung Inggris are only able to meet the expectations of

participants of an English course at a low to medium level. These conditions indicate that, the brand affect for English

course Institutions in kampung Inggris are considered unfavorable in the eyes of some of the participants of English courses.

In addition, the results of observations made (dated January 5th to February 10th, 2013) by observing the behavior of

participants in the colleges of Kampung Inggris. Researchers observed a tendency of the participants, whether they would

still stay in the course of the first institutions they use, or would switch to other colleges. Based on these observations, it

turns out most of the students switches from one institute course to another institute course due to several reasons,

namely: material provided does not match what they need and qualifications of the teaching force is considered less

qualified. In addition, the influence of friends and family preferences also influence them to switch from one institute

course to another, because the course chosen in the current Institution is more reliable than the previous course institution.

This phenomenon reveals how some of the participants move from one institution to another institution. In fact, in terms of

courses offered form each institution have relatively the same offer from one another. These conditions indicate the

participants do not have brand loyalty to certain colleges in Kampung Inggris.

According to Chaudhuri and Holbrook (2001:82) brand affect is a brand potential in getting a positive response to the

average consumer as a result of their use, including attitude. Attitude is something that affects consumers' decision to a

brand, which according Baghozi; Gonipath; Nyer (1999:184) there are two dimensions that influence attitudes, namely

cognition and affection. Brand trust in respect of aspects of cognition consumers to the brand, where the functional

benefits of a brand is more dominant to consideration. While brand affect respect to affective aspects inherent in the

consumer. Kotler (2012) explain consumer behavior is influenced by cognitive and affective aspects, which will determine

the cognitive aspects of consumer affection. If the cognitive aspects of the consumer is not able to explain the benefits of

the brand, the affective aspect will determine consumer attitudes toward the brand. Therefore, it should be if brand trust of

the English language colleges in Kampung Inggris is particularly bad in the eyes of the English language course participants,

should they will give a negative attitude to the English language colleges. The researcher intends to uncover how

relationships between brand trust on brand affect English language colleges in Kampung Inggris, Pare, Kediri.

Jahangir et al. (2009:21-23) suggests that brand affect and brand quality is positively and significantly related to brand

loyalty. Iglesias (2011) in Kabadayi (2012:85) also states the importance of brand affect in creating brand loyalty. Therefore,

if the brand affect of the English course participants are not good, it will have an impact on brand loyalty.

According to Lin and Lee (2012:320) states that brand trust has no effect on brand loyalty. While in the context of the object

under study, researchers found that according to Mrs. Tri Winarni, as the owner of Krishna course institutions (the interview

date 4 April 2013, at 12.50WIB) stated course participants were dissatisfied with most colleges in Kampung Inggris, Pare,

Kediri. Participants rely on the English language course institution capable of fulfilling the promises offered. In addition,

English language courses in Kampung Inggris are expected to solve problems and meet the participants needs in obtaining

the services of a quality English language courses. Researchers also found that the participants has given a negative opinion

on institutions courses generally in Kampung Inggris, but received a positive opinion on a particular course institutions

(including Elfast, Daffodils, Krishna and Access) on a particular program. However, participants still have confidence that

they are still making Kampung Inggris as the best place to learn English than in their regions. This indicates that although the

general course participants perceive is less well in Kampung Inggris, they still chose Kampung Inggris as a place to learn

English.

The purpose of this study is to analyze how the effect of brand trust and brand affect on brand trust of the English language

course institution with a customer survey from participants through a variety of English language colleges in Kampung

Inggris districtsi in Pare, Kediri, East Java.

LITERATURE STUDY

Determination of the brand (branding) is a way to give the brand power products and services. Determination of the brand

serves to create differences among products (Ibid). "A brand is an image of an organization, at the same time huge amounts

are spent by the organization in order to Compete and survive in a competitive market, fulfilling customer demands" is the

brand image of an organization, at the same time large amounts spent by organization - in the determination of the brand -

in order to compete and survive in a competitive market - and - meet the demands of customers. (Barrett; Lye;

Venkateswarlu, 1999) in (Anwar; Gulzar; Sohail; Akram, 2011:73).

Determination of brands creating mental structures that help consumers organize their knowledge about products and

services by way of explaining their decision-making, and in the process provide value to the company (Kotler and Keller,

2013:265). According to Martin et al. (2005) in Kabadayi and Alan (2012:80) states that, "In a growing environment

competences; Becomes most valuable brand, strategic and critical assets of a company and receives a considerable

attention "(In an environment of growing competence; become the most valuable brand, the critical and strategic corporate

asset, and received considerable attention). By looking at the various roles of the brand, the brand marketers put as

intangible assets the company, so that with the establishment of the brand so that it will appear trusts.

According to Morgan and Hunt (2004) in Afsar, Ur Rehman, Qureshi and Shahjehan (2010:1042) "Trust has been defined as

the willingness to rely on an exchange partner in Whom one has confidence". Meanwhile, according Deuts (1979) cited by

Ballester and Aleman (2005:190) "Trust is defined as the confidence that one will find what is Desired from another, rather

that what is feared". Rotter (1967) cited by Jahangir, Parvez, Shattscharjee and Ahamed (2009:20) stated that "trust is a

generalized expectancy held by an individual that the word of another can be relied on".

According to Aaker (1996); Lasser et al. (1995) in Tan and Rasiah (2011:129) states that, "brand trust as the consumers'

readiness in believing on a particular brand of its capability of promised functionality and its attributes". According to

Ballester and Aleman (2005:188) "Brand trust is defined as the confident expectations of the brand's reliability and

intentions”.

Ballester and Aleman (2005:188) argues that, brand reliability or reliability of the brand that originates in consumer

confidence means the product is able to meet the promised value, or in other words, the perception that the brand is able

to meet needs and deliver satisfaction. Brand reliability is essential for the creation of trust in the brand since the brand's

ability to meet its promised value consumers put make sure the taste will get what is needed in this case needs to come out

feeling threatened. While the intention brand based on consumer confidence that the brand is able to put the interests of

consumers when problems arise in the consumption of products unexpectedly.

The second component of brand trust (brand reliability and brand intension) is able to put the interests of consumers when

problems arise in the consumption of products unexpectedly. The second component of the brand rests on the belief that

consumers' assessment is based on subjective or perceptions of each consumer on the benefits that can be provided the

product/brand.

According Lantieri and Chiagouris (2009:83) argues that there are some things that have created mistrust of brands,

including the consumer more cynical about the brand, the consumer has a bad experience with the brand, how the

structure of the company, quality is uneven/unstable, decrease the quality of services, and too many options offered by the

company.

According to Rotter (1967) in Jahangir et al. (2009:22) states that, confidence in the brand is a key variable in the

development of enduring desire to maintain long-term relationships. While Mc.Allister (1995) in Jahangir et al. (2009:22)

expressed confidence in the brand is the extent to which a person believes, and is willing to act on the basis of the words,

actions, and decisions of others, is unique in the domain of the consumer, the average consumer willingness to rely on the

brand's ability to perform other functions. consumer understanding of the product brand that differentiates it from other

brands (Tjahyadi, 2006:73).

According to Jacoby and Chestnut (1978), quoted by Chaudhuri and Holbrook (2001:87) to measure brand trust as the

variables studied are based on the following four statements: "I believe in this brand", "I rely on this brand", "This is honest

brand ", and "This brand is very safe". Meanwhile, according to Geçtidan Zengin (2013:114) brand trust is measured by the

three following statement "I trust his brand", "This brand is safe" and "This is an honest brand". Based on the study of the

concept of brand trust, for the purposes of this study the measurement of brand trustmenggunakan-dimensions as follows:

brand reliability, brand intention (Lin and Lee, 2012:312; Ballester and Aleman, 2005:188).

The argument underlying the determination of the dimensions of the variables to measure brand trust variables are as

follows: (i) Brand reliability can be measured by the extent of a brand is able to perform its function, so in this study may

explain the different brand reliability functional benefits of a brand. (ii) intentions already leading brand into consumer

attitudes toward the brand, whether it has a tendency to make the process of buying or not. But brand intentions here is

based more on the basis of rational considerations.

In the procurement process based on the purchasing decisions of purchase decision is influenced by affective factors. Lin

and Lee (2012:309) noted the importance of affective factors in self steeped consumers as human beings, because affection

more influence on decisions than cognition.

Therefore we can see that the research conducted by Chaudhuri and Holbrook (2001:81) states that brand attitudes can be

measured through brand trust and brand affect. This study can serve as the basis framework of how influential brand trust

on loyalty. Aaker (1991:39) states that brand loyalty is at the core of a brand's equity. If different customers to purchase a

brand in fact with respect to features, price, and convenience of trademarks. On the other hand, they continue to buy the

brand even in the face of competitors with superior features, price, and convenience, there is substantial value in the brand

and possibly in the symbols and slogans.

According Bannet and Bove (2002:2). The concept of loyalty has long been regarded by academics and marketing

practitioners as a valuable tool for developing effective marketing strategies. Loyalty is considered to be a multi-

dimensional concept that complex (Dick and Basu 1994; Ha 1998; Javalgi and Moberg, 1997; Mellens et al. 1996; Bennett

and Bove, 2002:3).

Berbagai penelitian diatas menunjukkan bahwa, terdapat keterkaitan antara brand affect terhadap brand trust.Selain itu

penelitian diatas juga menggambarkan keterkaitan antara brand trust terhadap brand loyalty. Peneliti bermaksud

mereplikasi model penelitian Kabadayi dan Alan (2012:81) dimana peneliti bermaksud ingin menguji secara empiris,

sejauhmana hubungan ketiga variabel (brand trust,brand affect dan brand loyalty) pada lembaga kursus di kawasan

kampung inggris, Pare, Kediri.

Various studies above show that, there is a link between brand affect on brand trust. Beside that the above study also

illustrates the relationship between brand trust on brand loyalty. Researchers intend to replicate our model Kabadayi and

Alan (2012:81) in which the researcher intends to test empirically, the extent of the relationship of three variables (brand

trust, brand loyalty and brand affect) at colleges in Kampung Inggris.

RESEARCH METHOD

The research method is a scientific method used to obtain the data with its intended purpose. This study used the

descriptive analytical method, which describes a phenomenon that occurs in an explanatory research object and method, to

determine the relationship between the variables with other variables. Model testing of latent variable models of

relationships using path analysis.

The unit of analysis in this study were participants of the English language colleges in Kampung Inggris, Village Tulungrejo,

Pare, Kediri. Implementation of planned observations is in February-June 2013. Units of analysis / research subjects of this

study were the students of English courses at various colleges in Kampung Inggris, namely the Institute of Global Course-E,

Krishna, Mahesa, Elfast, Mr. . Bob, Daffodils and Basic English Course (BEC). While the observation unit which is investigated

are the customers' perception of brand trust, brand loyalty and brand affect in Kampung Inggris, Tulungrejo Village,

Subdistrict Pare, Kediri.

Measurement of customer attitudes towards brand trust, brand loyalty and brand affect are doneby using numerical

differences. The reason for using numerical differential in this study is because of the perception and attitudes that could be

positive and negative, therefore the use of differential numeric scale used to measure the tendency of perceptions and

attitudes of customers is very appropriate, whether it has a positive or negative tendency. Including differential numeric

scale on an interval scale, therefore this study uses the interval measurement scale.

According Jogiyanto (2008:67) gives a differential numeric scale extreme values on both sides, where the value of one side

is given a positive value and the other side is given a negative value. The scale is the same as the scale semantic distinction

(semantic differential) using two extreme values and subject to determine the response between the two extreme-value-

the-space provided to respond-referred to as the semantic space (Jogiyanto, 2007:67). In this numerical difference scale,

semantic space is replaced with numerical figures.

The following table analyze the respondents' answers to the questionnaire as in table 3.1 below:

Table 3.1

Examples of Numerical Rating Scale Differential Measurement

No Statement RATING CATEGORY

1 Statement 1 Not Yet Tested 1 2 3 4 5 6 7 8 9 10 Been Tested

2 Statement 2 False 1 2 3 4 5 6 7 8 9 10 True

3 Statement 3` Poor 1 2 3 4 5 6 7 8 9 10 Excelent

4 Statement 4 Inappropriate 1 2 3 4 5 6 7 8 9 10 Suitable

In this study, the interval scale is of 1 to 10. According Jogiyanto (2008:67) semantic differential scale gives space for the

respondent to see the tendency of respondents to the statement whether it is negative or positive. As for the question on

the questionnaire items for each institution in accordance with the course distinguished brand tutoring agencies, such as

the brand agency MAHESA course, Global-E, Krishna, Daffodills, Access, BEC, Elfast and Mr.Bob. The purpose of these so

that the respondent can immediately identify the brand being assessed.

The population in this study were students of English courses in Kampung Inggris, Subdistrict Pare, Kediri. Researchers

chose colleges that have relatively long standing based on two criteria. First, the institution has been established over the

course of 5 years. Second, the number of colleges students reached more than 1,000 students per year. If either of the

above two criteria are met, it will be included in the study population. Based on both criteria, there are 8 (eight) institutions

that entered as the observation unit. While participants colleges as the unit of analysis. The number of colleges in the

Kampung Inggris area according to the Chairman of the Forum Komunikasi Bahasa (Forum hometown Communication

Language) Pare, Kediri is as much as 148 (one hundred and forty-eight) Institute Course.

In connection with this research, probability sampling technique was used by means of stratified random sampling, i.e.

sampling with a set based on the number of population of each institution. Based on the number of students and age

criteria institute courses, the courses chosen by 8 institutions as an affordable population. Because the population size is

too large, to determine the sample size using the formula Slovin author, obtained from the number of students in 8 colleges

in December 2013 is estimated at students. Thus, the number of respondents who were taken after the calculation is

obtained as 99.98328 but can be rounded to 100 respondents. Sampling was carried out by using means of probability

sampling, meaning that all the population has an equal chance to be the respondent. Sampling technique in this study uses

a stratified random sample. The sample was selected by stratified random sampling technique with proportional allocation

shown in the following table below:

Table 3.2 Distribution of Sample Course Participants

Course Institution Number of

students Ni ni (rounded)

Global – E 1300 21.74 22

Elfast 960 16.05 16

Daffodils 700 11.71 12

Mahesa 600 10.03 10

Access 650 10.87 11

Kresna 770 12.88 13

Mr.Bob 500 8.36 8

Basic English Club 500 8.36 8

Total 5980 100 100

Source: Forecast number of students as at 30 November 2013 in each English course in Kampung Inggris, Pare, Kediri,

respectively.

Given the model in this study is causality (cause-effect relationships), then to test the hypothesis empirically this study will

use Multivariate Data Analysis, by using path analysis test equipment. Testing the hypothesis will be tested empirically

through a study based on a selected sample that meets the specified criteria. These five variables were measured using

measurement instruments that form intervals, X1 = Brand Trust, Brand Affect = X2, Y = Brand Loyalty, but for sub.struktur 1,

data from a study of the variables are then tabulated into the following table:

table 3.3

Tabulation of Results Measurement Brand Trust, Brand Affect, Brand Loyalty

Interval Level of Measurement

Observation X1 X2

X1

X2

Source: Kerlinger F.N. and Pedhazur (1973) in Munir (2005:2)

The analysis proposed by the researcher can be translated into the path diagram below:

Source: Developed for this research

Figure 3.1 Path Diagram

Brand Trust, Brand Affect and Brand Loyalty

Description:

X1 = Exogenous Variable X1 (Brand Trust)

X2 = Exogenous Variable X2 (Brand Affect)

Y = Endogenous Variable Y (Brand Loyalty)

= Korealasi between variables X1 and X2.

ρYX1= Path coefficients variable X1 to variable Y

ρYX2= Path coefficients variable X2 to variable Y

= Other variables that affect the variable Y, which is not contained in the model

This test uses 1 Test side, because the research hypothesis suggests the effect of Xi on Y is a positive influence. Manually

path coefficients were tested by t-test statistic with 16 degrees of independent there is a critical point = 2.1199. Using the

SPSS output, in ª Coefficients table, in column sig and t used to test koeisien track. If the p-value (Sig column) is smaller than

0.05 or t columns greater than the critical point of 2.1199 then Ho is rejected. Meanwhile, if the p-value (column Sig)

greater than 0.05 or greater than the column t 2.1199 Ho received critical point.

From the results of tests of significance testing path coefficients obtained objective information, that the path coefficient

from Xi to Y significant or meaningful if t count on t-table and the p-value below 0.05. Meanwhile, if the path coefficient

from Xi to Y is not significant or not if the t-test under the t-table and p-value above 0.05. If there is one variable Xi to Y that

is not significant, then the process must be started again by issuing the Xi that are not significant from the model (the

process is repeated from the beginning of the formation of the structural model, by removing the insignificant variables

from the model). Variables that have test results greater t is a variable that has a greater influence than other variables. It is

shown in the column t. If the value of the variable Xi t is greater than the column of another variable Xi, then the effect of

the variable Xi Xi is larger than the other variables. Or the total effect of the exogenous variables Xi variable Y is equal to n%

when compared to the other Xi are only n%.

Y rX1X3

ε X1

X2

PYX2

pYX1

RESULT AND DISCUSSION

To examine the effect of brand trust and brand Affect on brand loyalty. Testing research hypotheses can be formulated as

follows:

Null Hypothesis (Ho): there is a positive and significant effect of brand trust and brand Affect on brand loyalty.

Alternative Hypothesis (Ha): There is not a positive and significant effect of brand trust and brand Affect on brand loyalty.

Hypothesis Statistics:

Ho: ρ_ (YX_1) = ρ_ (YX_1) = 0, simultaneously there is no influence of brand trust and brand affect towards brand loyalty.

Ha: At least there is ρ_ (YX_i) ≠ 0, there is a simultaneously positive and significant effect of brand trust and brand affect on

brand loyalty.

Statistical test used was the F test at the alpha of 5% with the following results:

table 4.40

Simultaneous testing of brand trust (X1) and brand Affect (X2) towards brand loyalty (Y)

Model Sum of Squares Df Mean Square F Sig.

1 Regression 3426.534 2 1713.267 84.607 .000a

Residual 1964.216 97 20.250

Total 5390.750 99

a. Predictors: (Constant), X1, X2

b. Dependent Variable: Y

Based on the SPSS calculations above, the value of calculated F = 84.607 and p-value = 0.000 means that Ho is rejected. This

means that there is simultaneously a positive and significant effect on brand loyalty (p-value <0.05).

It can be concluded that the hypothesis testing can be forwarded to the partial test to test the effect of the difference in the

form of large n coefficient. Total value of the coefficient of determination (R ²) is 0.636 or 63.6% brand loyalty factor and

once adjusted into 0,628 or 62.80% are influenced by factors brand trust and brand affect. The remaining 37.20% is

influenced by other factors which are not examined. Research conducted by Chaudhuri and Holbrook (2001:81) describes

the effect of brand affect and brand trust on brand loyalty.

CONCLUSION After exposure in the previous chapter, this research can be concluded that the positive and significant influences of brand

trust and brand Affect on brand loyalty. Total value of the coefficient of determination (R ² ajusted) of 0.636 atau 0.628. It is

clear that brand loyalty is influenced by brand trust and brand Affect jointly by 62.8 percent at a significance level of 5%. Its

mean that the level of brand loyalty is strongly depend on brand trust and brand affect. We need to pay attention to the

performance of the brand trust and brand Affect.

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