ANALYSIS OF CUSTOMER SATISFACTION AND BUSINESS

MODEL CANVAS IMPLEMENTATION

IN START-UP BUSINESS: THE CASE OF EUREKA INTERVIEW

Entrepreneurship Thesis

To Fulfill Graduate Program Degree Requirement

Submitted by

Mohammad Genta Mahardhika

10/310079/PEK/15251

MASTER OF MANAGEMENT PROGRAM

FACULTY OF ECONOMICS AND BUSINESS

UNIVERSITAS GADJAH MADA

2012

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DECLARATION

I hereby declare that this thesis does not contain work that has previously been

submitted to obtain any degree at any higher educational establishment, and to the

best of my knowledge does not contain the previously published work nor opinion of

other person, with the exception of those cited written in this paper and acknowledge

in the bibliography.

Yogyakarta, 16 March 2012

Mohammad Genta Mahardhika

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ACKNOWLEDGMENT

The greatest gratitude to The God Almighty, who give me a wonderful life,

and great opportunity to finish my thesis in MMUGM. I would like to give my

deepest gratitude and appreciation for these wonderful people:

1. Nurul Indarti, Sivilokonom. Cand. Merc., Ph.D for being my lecturer and

thesis supervisor. Thank you for spending your limited time to discuss and

advise my thesis. You are supportive and smart person, Mam. No wonder

your have achieve so many things at the young age.

2. Dr. Zulfahmi Burhan, Sjahdjunarni, Mohammad Gezah Albanna and Geny

Permata Hati for being my lovely family with great support. Thank you Gez

and Geny for being unique, and creative brother and sister. Thank you for

every prayer being said, Mom. Thank you for every discussion we have made,

Dad.

3. Vita Widyasari, S.Ked. for being my lovely supportive person since we met.

Thank you hun.

4. Dian Ardhini Hapsari, MBA for being my best friend in MMUGM. Thank

you for every support in thesis, class, marketing club, and jumping jack.

Thank‟s Dhin.

5. Vishal Chander Dasani, MBA for being my best friend in MMUGM. Thank

you for every support in thesis, class, marketing club, and jumping jack.

Thank‟s Bro.

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6. My big family, Nenek, Amak, Tek Del dan Pak Etek In, Pak Etek Pi dan Tek

Elsi, Tek Yon dan Pak Etek Bis, Tek Eva, Tek Tety, Fauzan, Fauziah, Furqan,

Irma, Ilham, Ilvy, Damar, Daffa, Tek Lin dan Pak Etek Dani, Mozza, Tek

Yeni dan Pak Etek Zal, Dhika, Hatta, Mak Dang Wan, Mak Angah Pin, Mak

Etek At. Thank you for supporting in your own way.

7. I also want to give my greatest gratitude all MMUGM staff especially to the

Admission Office (Ms Diana Kestanti, Mrs Noor Aini Endrawati, Mrs Sri

Lestari, Mr Eko Sukajiyanto) for the warm friendship and guidance through

our years in MMUGM, Ms Panca Mulyaningrum, Mr Rujito, Ms Asih, and

Mr Rizki in the Student Association Office for being very supportive in the

extra-curricular activities. Mr Muhammad Akhdy Prihantono, Mrs Ning, Mr

Bambang, Mr Poniman, Mr Fatur, Mr Widadi, Mrs Ira and the rest of

Academic Affairs Office who has been very supportive during the study. Mrs

Erna, Mr Bekti, Mr Ngatimin, Mr Fatkhan Mrs Desy, Mrs Ruri, Mr Wijaya

and the rest of MMUGM staff. Thank you for supporting in your own way.

8. All of my friend in MMUGM Yogyakarta: Arief, Budi, Cendana, Ifti, Ophy,

Dian Listya, Metta, Sari, Belinda, Winda, Phipi, Dinar, Aang, Wendy, Andri,

Non, Gugu, Jumran, Yudhis, Iko, Novi, Thici, Tabitha, Iin, Fadly, Putra,

Dimas, Yudha, Rasyid, Rahmat, Anggi, Icha, Dian, Dewi, Lingga, Andri,

Riri, Rindi, Cathrin, Yuna, Tyas, Iman, Dian ISU, Leo, Yulis, mas Rahmat.

9. Everyone who support me and i cannot mention it one by one. May Allah

bless you.

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“The Best of Human Beings are human beings who provide benefits to many people”

–Mohammad SAW-

Yogyakarta, 16 March 2012

Mohammad Genta Mahardhika

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TABLE OF CONTENTS

CHAPTER I BACKGROUND ....................................................................... 1

I.1 Company External Environment .......................................................................... 1

I.2 Company Internal Environment ........................................................................... 2

I.3 Research Questions .............................................................................................. 3

I.4 Purpose of the Study ............................................................................................ 4

I.5 Benefit of the Study ............................................................................................. 4

CHAPTER II LITERATURE REVIEW ......................................................... 5

II.1 Customer Satisfaction ......................................................................................... 5

II.2 Mission, Vision, and Goals ................................................................................. 7

II.3 Business Model Canvas ...................................................................................... 9

II.3.1 Customer Segment ..................................................................................... 11

II.3.2 Value Proposition ....................................................................................... 12

II.3.3 Channel ...................................................................................................... 13

II.3.4 Customer Relationship ............................................................................... 14

II.3.5 Key Resources ............................................................................................ 16

II.3.6 Key Activities............................................................................................. 17

II.3.7 Key Partnerships ........................................................................................ 17

II.3.8 Revenue Stream ......................................................................................... 18

II.3.9 Cost Structure ............................................................................................. 20

CHAPTER III RESEARCH METHODS ...................................................... 22

III.1 Level of Analysis ............................................................................................. 22

III.2 Type of Data .................................................................................................... 22

III.3 Population and Sample .................................................................................... 22

III.4 Data Collection Methods ................................................................................. 23

III.5 Quality of the Instruments ............................................................................... 23

III.6 Data Analysis Methods ................................................................................... 23

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CHAPTER IV STRATEGY AND PLAN ...................................................... 24

IV.1 Mission, Vision, and Goals ............................................................................. 24

IV.2 Customer Segment .......................................................................................... 26

IV.3 Value Propositions .......................................................................................... 26

IV.4 Channel ........................................................................................................... 27

IV.5 Customer Relationship .................................................................................... 29

IV.6 Key Resources ................................................................................................. 29

IV.7 Key Activities .................................................................................................. 30

IV.8 Key Partnerships ............................................................................................. 30

IV.9 Revenue Stream .............................................................................................. 30

IV.10 Cost Structure ................................................................................................ 31

CHAPTER V STUDY RESULTS AND BUSINESS ACTION ........................ 33

V.1 Study Results .................................................................................................... 33

V.1.1 The Result of Customer Satisfaction in Training Methods ....................... 34

V.1.2 The Result of Customer Satisfaction in Trainer Performance ................... 35

V.1.3 The Result of Customer Satisfaction in Training Usefulness .................... 36

V.2 Business Action ................................................................................................ 37

V.2.1 Customer Segment ..................................................................................... 37

V.2.2 Value Propositions ..................................................................................... 38

V.2.3 Channel ...................................................................................................... 38

V.2.4 Customer Relationship ............................................................................... 39

V.2.5 Key Resources ........................................................................................... 39

V.2.6 Key Activities ............................................................................................ 39

V.2.7 Key Partnerships ........................................................................................ 40

V.2.8 Revenue Streams ........................................................................................ 40

V.2.9 Cost Structure............................................................................................. 40

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CHAPTER VI CONCLUSION AND RECOMMENDATION ........................ 41

VI.1 Conclusion ....................................................................................................... 41

VI.2 Recommendation ............................................................................................. 42

BIBLIOGRAPHY ....................................................................................... 44

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APPENDIX

Appendix 1 Questionnaire ....................................................................................... 47

Appendix 2 Data Collection .................................................................................... 48

Appendix 3 Descriptive Statistics ........................................................................... 49

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TABLE OF TABLES

Table 1 Customer Satisfaction Researchers Statement ................................................. 6

Table 2 Cost Structure ................................................................................................. 31

Table 3 Customers Demography Summary ................................................................ 33

Table 4 Result of Customer Satisfaction in Training Methods ................................... 34

Table 5 Result of Customer Satisfaction in Trainer Performance Results.................. 35

Table 6 Result of Customer Satisfaction in Training Usefulness ............................... 36

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TABLE OF FIGURES

Figure 1 Mission, Vision and Goals of Eureka Interview ........................................... 24

Figure 2 Eureka Interview Nine Building Blocks ....................................................... 32

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Intisari

Eureka Interview adalah bisnis baru yang bergerak dalam bidang

pelatihan wawancara kerja dengan metode simulasi. Setelah pendiriannya

pada tahun 2010, sangat penting untuk mengevaluasi performa Eureka

Interview dalam sudut pandang konsumen dan belajar menjalankan

bisnis pemula selangkah demi selangkah. Penelitian ini berkeinginan

untuk mengevaluasi bisnis Eureka Interview dalam perspektif kepuasan

konsumen. Penelitian ini menjadi semakin penting ketika mengetahui

adanya pesaing-pesaing yang mencoba mengungguli, adanya peluang

serta ancaman dari dalam dan luar Eureka Interview. Tujuan utama dari

penelitian ini adalah untuk menganalisa implementasi dari konsep canvas

business model dalam memberikan produk yang memiliki nilai tambah

untuk membuat konsumen puas. Kepuasan konsumen didefinisikan

sebagai persepsi individu terhadap semua pengalaman dalam

berhubungan dengan barang atau jasa dalam hubungannya dengan

persepsi produk. Business model canvas dedifinisikan sebagai

rasionalisasi bagaimana sebuah organisasi membuat, menyampaikan dan

memaparkan nilai dalam bentuk nine building blocks. Penelitian ini

dilakukan dalam waktu tiga bulan sejak 29 Oktober 2011 sampai 28

Januari 2012. Total responden adalah 43 orang. Mereka adalah konsumen

Eureka Interview dalam periode penelitian. Hasil penelitian ini

menunjukkan bahwa kepuasan konsumen Eureka Interview yang terdiri

dari tiga faktor (kepuasan konsumen dalam metode pelatihan,

penampilan pelatih, dan kebermanfaatn pelatihan) berada pada level

puas. Dari nine building blocks canvas, ada beberapa bagian yang telah

di implementasikan dengan baik oleh Eureka Interview, yaitu customer

segment, value propositions, key resources, key activities, key

partnerships, revenue streams, dan cost structure. Building blocks

lainnya yaitu channel dan customer relationship di dalam Eureka

Interview business model belum diimplementasikan dengan baik.

Kata Kunci: Kepuasan Konsumen, Model Bisnis, Bisnis Pemula

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Abstract

Eureka Interview is a new business dealing in job interview soft skills

simulation training. After the establishment in 2010, it is crucial to

evaluate performance of Eureka Interview from customer‟s perspective

and to learn step by step strategies in running start up business. This

study was intended to evaluate Eureka Interview‟s business from the

perspective of customer satisfaction; and since there was an intense

rivalry among its competitors as well as the availability of opportunities

and threats from the company‟s internal and external environments, this

study becomes crucially important. The main purpose of this study was

to analyze business model implementation in delivering value added

products to make customer satisfied. Customer satisfaction is defined as

the individual perceptions of all experiences with the product or service

in relation to his or her expectations. Business model canvas is defined as

the rationale of how an organization creates, delivers, and captures value

in the forms of nine building blocks. This study was conducted in three

months since October 29th

, 2011 until January 28th

, 2012. Total

respondents were 43 people. They were Eureka Interview‟s customers

during the study period. The results showed that Eureka Interview‟s

customer satisfaction which consists of three factors (customer

satisfaction in training methods, customer satisfaction in trainer

performance, and customer satisfaction in training usefulness) are in the

level of satisfied. From nine building blocks business model canvas,

there were some building blocks in Eureka Interview that had already

being well-implemented. They were customer segment, value

propositions, key resources, key activities, key partnerships, revenue

streams, and cost structure. In the other hand, channel and customer

relationship in Eureka Interview‟s business model were not well-

implemented yet.

Keywords: Customer Satisfaction, Business Model, Start-up business

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CHAPTER I BACKGROUND

There is a growing trend in the number of entrepreneurs globally, including in

Indonesia (Klapper & Delgado, 2007). Majority of them are new entrepreneurs.

These new entrepreneurs have many challenges. One challenge is to implement an

existing business idea into a profitable business practice by delivering value added

products and satisfactory services to the customer. Eureka Interview is a new business

dealing in interview soft skills simulation training and through this thesis, the

challenges and opportunities of the Eureka Interview will be discussed.

I.1 Company External Environment

By the year 2010, the number of entrepreneurs in United State was 12.5% of the

nation‟s population. Japan was 10%, England 10 %, Singapore 7.5 %, China 2.5 %,

India 2.5 % and Malaysia 2.5 %. In Indonesia, the percentage of entrepreneurs

compare to total population was only 0.2%. It was a very low rate compare to other

countries. According to Elfindri, Ayunda, and Saputra (2010), to increase a welfare

level of a country, the ideal number of entrepreneurs should be at least 2% of the

population.

According to Stowe (2002) the United States has an almost overwhelming variety of

educational programs and activities that are designed to promote entrepreneurship.

The programs designed from the early stage of education (K-12 programs) to higher

education level (Ph.D. programs). By 1970, there were some 16 universities with

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courses in entrepreneurship in USA. The numbers are increasing year by year.

Nowadays, USA has entrepreneurship course and small business education. The

difference between entrepreneurship education and small business education is that

the entrepreneurship education focus on building companies that will eventually go

public and create wealth for the founders while small business courses focus on

creating business to provide an income for their owner-operators (Alberti, Sciascia, &

Poli, 2004).

Entrepreneur education program has just recently become popular in Indonesia.

According to Ortmans (2011) The Ministry of National Education has replicated the

International Labour Organization‟s “Know about Business” curriculum and has

trained 10,800 teachers in more than 4,500 schools since 2008.

There are also entrepreneurship education programs both in private and state

universities. University of Ciputra, one of private universities, has invested in

entrepreneurship curriculum about 10 million dollars. Directorate General of Higher

Education has launched program called Student Entrepreneur Program. This program

evaluates student business proposal, funds the prospective business and trains the

student entrepreneur (Ibrahim, 2011).

I.2 Company Internal Environment

Student entrepreneur program has affected all the participants positively. One of the

participant is a student of Faculty of Economics and Business Universitas Gadjah

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Mada (FEB UGM). His name is Mohammad Genta Mahardhika and he found Eureka

Interview which became the object of this study.

Eureka Interview business is a job interview consultant and training, founded in

Yogyakarta at July 1st 2010. This company started the first training in July 17

th 2010

with five trainees. It takes one year until the Eureka Interview organized soft

launching on October 28th

2011. The soft launching was a milestone to begin this

study.

At soft launching, Eureka Interview management consists of four people. The

majorities of management are fresh graduate students and has little experience in

managing consultant and training business, or business in general. Therefore, the

company‟s objective for increasing profit and satisfying the customers were quite

challenging for these young people.

I.3 Research Questions

After the establishment in 2010, it is crucial to evaluate performance of the Eureka

Interview from customer perspective and to learn step by step running start up

business. This study is intended to evaluate Eureka Interview business from the

perspective of customer satisfaction; and since there an intense rivalry among its

competitors as well as the availability of opportunities and threats from the

company‟s internal and external environments, this study becomes crucially

important. The researcher addresses the research questions as:

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1. Are the customers of Eureka Interview satisfied with the services?

2. Is the business model of Eureka Interview implemented effectively?

I.4 Purpose of the Study

The main purpose of this study is to analyze business model implementation in

delivering value added products to make customer satisfy. The purposes are stated as

follows:

1. To analyze Eureka Interview‟s customer satisfaction level

2. To analyze Eureka Interview‟s business model implementation

I.5 Benefit of the Study

This study has practical and theoretical benefits. In practical aspect, it will benefit the

Eureka Interview management and researcher will has benefit in theoretical aspect.

1. The Eureka Interview; Satisfied customers is a key to profitable and sustain

business. If Eureka Interview understands about customer satisfaction, they

will grab one of success keys in business. The other success key is business

model implementation. Business model should evaluate time to time.

Business model evaluation will be a guide to run start up business.

2. This study provides reference for future study.

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CHAPTER II LITERATURE REVIEW

Theoretical basis is important in conducting a study on customer satisfaction and

implementing a business model. In this chapter, the basic theories of customer

satisfaction, mission, vision, goals, and the company‟s business model canvas are

discussed.

II.1 Customer Satisfaction

Churchill Jr. & Surprenant (1982) defined customer satisfaction as an outcome of

purchase and result from the buyer‟s comparison of the rewards and costs of the

purchase in relation to the anticipated consequences. According to Parasuraman et al

(1988) customer satisfaction is defined as a result of comparison between customer

expectations about services provided by a service provider and customer actual

services received by a service provider (Yunus, Ismail, Juga, & Ishak, 2009).

Satisfaction is defined as an overall evaluation of performance based on all prior

experiences with a firm (Nicoleta-Cristina, 2008). In this study, customer satisfaction

is the individual perceptions of all experiences with the product or service in relation

to his or her expectations.

Although sales or market share can indicate how well a firm is performing currently,

satisfaction is perhaps the best indicator of how likely it is that the firm‟s customers

will make further purchases in the future (Farris et al, 2010). Future purchases reflect

company‟s sustainability and profitability. Some researcher supports this argument

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according to Ahmed, Nawaz, Usman, Shaukat, Ahmad, and Iqbal (2010). Some

arguments about this matter can be seen in table 1.

Table 1 Customer Satisfaction Researchers Statement

Researcher Year Statement

Drucker 1973 Customers‟ satisfaction is the base for business success.

Rust and

Zahorik

1993 Customers‟ satisfaction is now becoming a corporate

level strategy. There is positive relationship between

customer satisfaction and financial performance.

Anderson et al. 1994 Customers‟ satisfaction is source of competitive

advantage for organizations. There is positive

relationship between customers‟ satisfaction and

financial performance.

Claycomb &

Martin

2002 Customers‟ satisfaction is corner stone for relationship

between marketing and management.

Kim et al. 2004 Customers‟ satisfaction leads them to use current

service and creates loyal customers for future.

Source: Ahmed et al (2010).

According to Farris, Bendle, Pfeifer, and Reibstein (2010), customer satisfaction

measurement could give two advantages both inside and outside the organization.

Within organization, customer satisfaction measurement may provide feedback to the

employee and management. If there was a problem during its service, the customer

satisfaction measurement will be a warning for them. By using customer satisfaction

measurement, company would also able to determine the customer willingness for

recommending the business. A satisfied customer has higher tendency to recommend

a product/ service to friends, relatives and colleagues.

There are some factors that affect the customer satisfaction in service business.

According to Potluri and Mangnale (2011) some of them are service delivery process,

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service interaction and overall customer satisfaction level according to service

usefulness. In this study, customer satisfaction is defined as follows:

1. Service delivery process are the construction of services, describing the

scheme and sequence in which service operating system work and how they

link together to create the service experiences and outcomes that customers

will worth. In the context of this study, training methods of Eureka Interview

can be considered as service delivery process.

2. Service interaction principally determine by a high degree of person to person

interaction and by the absence of an exchange of tangible goods. In the

context of this study, trainer interaction with customer can be considered as

service interaction.

3. Overall performance of service usefulness which means the overall

perceptions of customer about the usefulness services.

II.2 Mission, Vision, and Goals

Achieving high level customer satisfaction is the basic creation for a company‟s

mission, vision, and goals of the company. According to Lipton (1996) mission

addresses the fundamental question of why an organization exists. Why it is in

business? What is its purpose? For whose benefit are all its efforts?

Defining mission statement is quite difficult for all companies. Companies usually

take a long time to define their mission. Successful companies usually define their

mission since the beginning of the company and they are not mention price or

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financial profit as a mission. For example, AT&T‟s mission statement is “Dedication

to being the world‟s best at bringing people together-giving them easy access to each

other and to the information and services they want- anytime, anywhere.” Another

example is SONY mission “To experience the sheer joy of innovation and the

application of technology for the benefit and pleasure of the general public” (Collins

& Porras, 1996).

The next term is vision. According to Collins & Porras (1996) vision provides

guidance about what core to preserve and what future to stimulate progress toward. A

well-conceived vision consists of two major components: core ideology and

envisioned future. Core ideology defines what we stand for. The envisioned future is

what we aspire to become, to achieve, to create something that will require significant

change and progress to attain. A vision must focus on the future and be a concrete

foundation for the organization. A good vision communicates why the organization

is special and different than the others. For example, Wal-Mart in 1990 wanted to

become a $125 billion company by the year 2000. The other example is Boeing in

1950. It is vision is “Become the dominant player in commercial aircraft and bring

the world into the jet age” (Collins & Porras, 1996).

The next term is goals. Goals are the milestone to achieve vision. Goals vibrant,

engage, and specific description is a milestone to achieve the vision. Company‟s

vision needs an audacious 10-to-30 year goal to progress. According to Collins and

Porras (1996) the term is called BHAG (Big, Hairy, and Audacious Goals). A true

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BHAG is clear and compelling, serves as unifying focal point of effort, and acts as a

catalyst for team spirit. A BHAG may only a 50% to 70% probability of success, but

the organization believes that it can reach anyway.

Henry Ford brought to life the goal of democratizing the automobile with this goal: “I

will build a motor car for the great multitude. It will be so low in price that no man

making a good salary will be unable to own one and enjoy with his family the

blessing of hours of pleasure in God‟s great open spaces. When I‟m through,

everybody will be able to afford one, and everyone will have one. The horse will

disappeared from our highways, the automobile will be taken for granted and we will

give a large number of men employment at good wages” (Collins & Porras, 1996).

Another example of SONY goals, “We will create products that become pervasive

around the world. We will be the first Japanese company to go into the U.S market

and distribute directly. We will succeed with innovations that U.S companies have

failed at – such as the transistor radio. Fifty years from now, our brand name will be

as well-known as any in the world and will signify innovation and quality that rival

the most innovative companies anywhere. „Made in Japan‟ will mean something fine,

not something shoddy” (Collins & Porras, 1996).

II.3 Business Model Canvas

Implementing mission, vision, and goals to become value that customer needed must

use theoretical tools. The idea tool to conduct the implementation is business model.

A business model describes the rationale of how an organization creates, delivers, and

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captures value (Osterwalder & Pigneur, 2010). Canvas business model is one of the

concept business models. Business model canvas was written by Alexander

Osterwalder and Yves Pigneur, professors in University of Lausanne, (Grassl, 2010).

The Business Model Canvas is the structure common to all models. It consists

of nine components (“building blocks”) arranged in a particular way that is

somewhat reminiscent of Porter‟s model of a value chain. At the core of a

business model lies a value proposition, which links the use of key resources

and the performance of key activities by key partners to build customer

relationships through channels operated to reach customer segments. The

stream of revenues generated by these components is held against the cost

structure associated with them. The Canvas is the leitmotif of the book, and

all business models presented are fitted into this mold. This structure provides

the backdrop for considering selected patterns of business models (unbundling

components, diversity based on the “long tail” hypothesis, multi-sided

platforms, “free” products, and “open” business models), techniques to help

design business models (from customer insights via prototyping to scenarios),

and lastly a re-interpretation of strategy through the lines of business models.

The book concludes with a systematic exposition of the business model

design process and an outlook to “beyond-profit” business models. The

examples presented on the way include a great variety of cases, from Skype to

Lego®, and from GlaxoSmithKline to Swatch Group. (p.1)

Business model can best be described through nine basic building blocks that show

the logic of how company intends to make money. Based on Osterwalder (2010), the

nine blocks cover the four main areas of business: customers, offer, infrastructure,

and financial viability. The business model is like a blueprint for a strategy to be

implemented through organizational structures, processes, and systems. Each block in

nine building blocks canvas is described as follows.

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II.3.1 Customer Segment

According to Larsen (2010) customer segmentation is a process of dividing the

market into several segments based on factors such as demographic, geographic, and

psychographic. The customer segments building block defines the different groups of

people or organizations an enterprise aims to reach and serve. Company needs to

group market with common needs, common behaviors, or other attributes. A business

model is designed carefully based on strong understanding of specific customer

needs. According to Osterwalder (2010) customer groups represent separate segments

if:

1. Their needs require and justify a distinct offer

2. They are reached through different distribution channels

3. They require different types of relationships

4. They have substantially different profitabilities

5. They are willing to pay for different apsects of the offer

There are different types of customer segments according to Kotler (2006). Here are

some examples:

1. Mass market; Business model who targets mass market is not distinguish

between different customer segments. The value proposition, distribution

channels, and customer relationships all focus on one large group with similar

needs and problems.

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2. Niche market; Business model targets specific, specialized customer

segments. The value propositions, distribution channels and customer

relationships are all aligned with specific requirements of a niche market.

3. Segmented; Segmented business model is a market segment consists of a

group of customers who share a similar set of needs and wants.

4. Diversified; This business model has two unrelated customer segments with

very different needs and problems.

5. Multi-sided platforms (or multi-sided markets); Organizations serve two or

more interdependent customer segments. Both segments are required to make

the business model works.

II.3.2 Value Proposition

The second building block is value proposition. According to Treacy and Wiersema

(1993) value propositions is an implicit offer to customers in a particular combination

of values. The value propositions building blocks describes the bundle of products

and services that create value for a specific customer segment. Value proposition

consist of a selected bundle of products to solve customer problem or satisfies a

customer need. Values may be quantitative (e.g. price, speed of service) or qualitative

(e.g. design, customer experience). According to Osterwalder (2010) elements from

the following list can contribute to customer value creation:

1. Newness; Some value proposition satisfy an entirely new set of needs that

customers previously didn‟t perceive because there was no similar offering.

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2. Performance; Improving product performance has traditionally been a

common way to create value.

3. Customization; Tailoring products and services to the specific needs of

individual customers or customer segments create value.

4. “Getting the job done”; Value can be created simply by helping customer get

certain jobs done.

5. Design; some products can be outstanding because of superior design.

However, design is difficult elements to measure.

6. Brand/ Status; Customer may find value in using/ displaying a specific brand.

7. Price; satisfy the needs of price-sensitive customer segments by offering

lower price with the same value.

8. Cost reduction; creating value by helping customers reduce costs.

9. Risk reduction; reducing customers risk when purchasing products can create

value.

10. Accessibility; when customers experience difficulties to access the products,

making the products available to customers can create value.

11. Convenience/ Usability; Substantial value can create by making things more

convenient or easier to use.

II.3.3 Channel

Channel is the third block. This building block describes how a company

communicates and reaches its customer segments to deliver a value proposition.

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According to Kamali and Loker (2002) channel is defined as the use of

communication, transaction, distribution channels by company to the customers.

Company‟s interface with customers comprise in communication, distribution, and

sales channels. According to Osterwalder (2010) channel has several function

including:

1. Raising awareness among customers about a company‟s products

2. Helping customers evaluate a company‟s value proposition

3. Allowing customers to purchase specific products

4. Delivering a value propositions to customers

5. Providing post purchase customer support

Bringing a value propositions to market is difficult. The solution is find the right mix

of channels to reach customer segment. Organization can choose using their own

channels, partner channels, or through a mix of both. Partner channels lead to lower

margins, but they allow an organization to expand its reach and benefit from partner

strengths. Own channel lead to high costs and unproven channel.

II.3.4 Customer Relationship

According to Prasongsukarn (2009) customer relationship is a combination of

strategy and information systems, it aims at focusing attention on customers in order

to serve them better. The type of relationships a company establishes with specific

customer segments is the definition of the customer relationship building block.

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According to Osterwalder (2010) customer relationships may be driven by the

following motivations:

1. Customer acquisition

2. Customer retention

3. Boosting sales (upselling)

We can distinguish between several categories of customer relationship, which may

co-exist in a company‟s relationship with a particular customer segment based on

Osterwalder (2010):

1. Personal assistance; Human interaction is based in this relationship. The

customer can communicate with someone during sales process or after sales

process using phone, email or on site meeting.

2. Dedicated personal assistance; using customer representative specifically to

an individual client.

3. Self-service; a company maintains no direct relationship with customers.

Customers help themself by system that company provides.

4. Automated services; this type of relationship using automated processes to

make customer help themselves.

5. Communities; Facilitate connections between community members and to

become more involved with customers/ prospects are the motivation behind

communities utilization.

16

6. Co-creation; Co-create value with customers to make products.

II.3.5 Key Resources

The key resources building block describes the most important assets required to

make a business model work. These resources allow an enterprise to create and offer

a value proposition, reach markets, maintain relationships with customer segments

and earn revenues. According to Grant (1991), a key resource is a basis of company

to create profit and source of direction. Key resources can be owned or leased or

acquired from key partners. According to Osterwalder (2010) key resources can be

categorized as follows:

1. Physical; this category includes physical assets such as manufacturing

facilities, buildings, vehicles, machines, systems, point-of-sales systems, and

distribution.

2. Intellectual; Intellectual resources such as brands, proprietary knowledge,

patents and copyrights, partnerships, and customer databases are very

important nowadays.

3. Human; every business need human to run their business, but in some

businesses human capital plays the most critical role.

4. Financial; Cash, lines of credit, or stock option pool for hiring key employees

are some financial resources and/ or financial guarantees.

17

II.3.6 Key Activities

The key activities building block describes the most important thing the company

must do to make its business model work. According to Osterwalder (2010) key

activities can be categorized as follows:

1. Production; in substantial quantities and/ or of superior quality these activities

relate to designing, making, and delivering a product.

2. Problem Solving; New solutions to individual customer problems are relate to

coming up in this type of key activity.

3. Platform/ network; Business model that design with a platform as the key

resources, do this key activity.

II.3.7 Key Partnerships

According to Carnwell and Carson (2004) partnerships is shared commitment, where

all partners have a right and an obligation to participate and will be affected equally

by the benefits and disadvantages arising from the partnership. The key partnerships

building blocks describe the network of suppliers and partners that make the business

model work. Companies create alliances to optimize their business models, reduce

risk, or acquire resources. According to Osterwalder (2010) there are four different

types of partnerships and three motivations for creating partnerships. The four

different types of partnerships are:

1. Strategic alliances between non-competitors

2. Coopetition: strategic partnerships between competitors

18

3. Joint ventures to develop new business

4. Buyer-supplier relationships to assure reliable supplies

The three motivations for creating partnerships are:

1. Optimization and economy of scale; this design to optimize the allocation of

resources and activities. Formed to reduce costs and often involve outsourcing

or sharing infrastructure are usually happen in optimization and economy of

scale.

2. Reduction of risk and uncertainty; Partnerships can help reduce risk in a

competitive environment characterized by uncertainty.

3. Acquisition of particular resources and activities; this partnerships can be

motivated by needs to acquire knowledge, licenses, or access to customers.

II.3.8 Revenue Stream

The revenue stream building block represents the cash a company generates from

each customer segment. Revenue stream is revenue that resulted from delivering

value to customers. According to Osterwalder (2010) there are several classifications

of revenue stream. First, a business model can involve two different types of revenue

streams:

1. Transaction revenues resulting from one-time customer payments

2. Recurring revenues resulting from on-going payments to either deliver a value

proposition to customers or provide post-purchase customer support

19

Second, there is several ways to generate revenue stream:

1. Asset sale; selling ownerships rights of a physical products.

2. Usage fee; this revenue streams come from the use of particular service.

3. Subscription fee; this revenue stream comes from selling continuous access to

a service.

4. Lending/Renting/Leasing; This revenue stream come from allowing someone

to use particular asset as an exclusive right in fixed period and as a return, fee

will be given.

5. Licensing; this revenue stream come from giving customers permission to use

protected intellectual property in exchange for licensing fees.

6. Brokerage fees; this revenue stream come from intermediation service

between two parties.

7. Advertising; this revenue streams come from product fees from advertising a

particular product.

Third, each revenue streams has different pricing mechanisms. There are two main

types of pricing mechanism: fixed and dynamic pricing. Fixed menu pricing are based

on static variables. Examples of fixed menu pricing:

1. List price; fixed prices for individual products or other value proposition.

2. Product Feature Dependent; Price depends on quality of value propositions

features or the number.

20

3. Customer segment dependent; Price depends on type of customer segment.

4. Volume dependent; Price depends on the number of quantity purchased.

Fourth, variable pricing are pricing methods that change based on market conditions.

Some examples of variable pricing are:

1. Negotiation (bargaining): price depends on the power of negotiation between

two parties.

2. Yield management: this menu pricing depends on inventory and time of

purchase.

3. Real-time market: supply and demand play significant role to establish the

price.

4. Auctions; price come out from competitive bidding among the buyer.

II.3.9 Cost Structure

The last block is the cost structure. It describes all costs incurred to operate a business

model. All business model building blocks incur costs. Creating and delivering value,

maintaining customer relationships, generating revenue, get key resources, doing key

activities and build key partnerships. According to Osterwalder (2010) there are two

broad classes of business model cost structure and four characteristics of cost

structure. The two broad classes of business model are:

21

1. Cost-driven; Focus on minimizing costs wherever possible. Usually this cost

structure maintains the leanest possible cost structure, using low price concept

of value proposition, maximum automation, and extensive outsourcing.

2. Value-driven; Focus on value creation. Usually this cost structure has

premium value propositions and high degree personalized service.

The four characteristics of cost structure are:

1. Fixed costs; Costs that still exist wherever the products sold or not.

2. Variable costs; Costs that proportionally with the volume of goods or services

produced.

3. Economies of scale; Cost advantages that a business enjoy as its output

expands. Average cost per unit will lower as output rise.

4. Economies of scope; Cost advantages that a business enjoys due to a larger

scope of operations.

22

CHAPTER III RESEARCH METHODS

This study uses descriptive quantitative method to measure customer satisfaction. The

advantage for quantitative method is the research instrument consistency and average

respondent conclusion.

III.1 Level of Analysis

The analysis level of this study is customer. Researcher questioned the customer

satisfaction after receiving Eureka Interview‟s service. The service of Eureka

Interview was determined as follows:

1. Customer satisfaction in training methods,

2. Customer satisfaction in trainer performance, and

3. Customer satisfaction in training usefulness.

III.2 Type of Data

The data required for this study is primary data. It was obtained from the

questionnaire filled by Eureka Interview‟s customers.

III.3 Population and Sample

The population of this study was Eureka Interview customers during study period

(October 29th

2011 – January 28th

2012). All was taken as a research object.

23

III.4 Data Collection Methods

Data collection method which used in this study was questionnaire. The questionnaire

was printed and distributed to the respondents. They were asked to fill out the

questionnaires after Eureka Interview training. The questionnaire form is enlisted in

the appendix part of this report.

III.5 Quality of the Instruments

The questionnaire developed by researcher is based on the theory customer

satisfaction factors in service business (Potluri & Mangnale, 2011). Content validity

is used to assess the questionnaires‟ validity. The data validity and reliability was

tested using SPSS 19. The result of validity tests showed that KMO Sampling

Adequacy > 0.5 (0.552) and reliability test shows that cronbach‟s alpha > 0.7 (0.738).

It means that the questionnaires are valid and reliable.

III.6 Data Analysis Methods

There are some steps for data analysis in this study:

1. Data collection

2. Data input

3. Data checking

4. Data analysis using SPSS

5. Results analysis and discussion

Respondent answered questions using 10 point scale in rating format. Scale 9 and 10

means very satisfied, 7 and 8 satisfied, below 7 not satisfied. This classification is

adjustment from Reichheld (2003) classifications.

24

CHAPTER IV STRATEGY AND PLAN

According to Osterwalder (2010), the theory of business model is a guidance to create

profitable business. Profitable business is a result of mission, vision, and goals clarity

implemented in nine building blocks business model canvas. This chapter discusses

Eureka Interview mission, vision, goals, and the nine building blocks canvas.

IV.1 Mission, Vision, and Goals

Eureka Interview mission, vision, and goals summarize in figure 1.

Figure 1 Mission, Vision and Goals of Eureka Interview

Mission

“To be a partner of youngster to achieve their success with soft skills”

Vision

“To become worlwide company which improves youngster soft skills that

needed in business environment.”

Goals

“In 2021 Eureka Interview serve customers all of Java Island.”

“In 2031 Eureka Interview market scope in Asia.”

“In 2051 Eureka Interview market scope in Europe and America.”

“When peoples hear Eureka Interview, they will associate as their partner to

achieve success with soft skills.”

“Majority university students in this world will choose Eureka Interview

because their professionalism and hospitality.”

25

Eureka Interview mission is “To be a partner of youngster to achieve their success

with soft skills.” This mission already answered the fundamental questions of Lipton

(1996) concept. The fundamental questions were answered in Eureka Interview‟s

missions as follow:

1. Why an organization exists? To be a partner of youngster in achieving their

success.

2. Why it is in business? To be a partner in achieving youngster‟s success.

3. What is its purpose? To be a partner of youngster.

4. For whose benefit are all its efforts? To youngster and Eureka Interview as the

youngster‟s partner.

Eureka Interview vision articulation is “to become worldwide company which

improves youngster soft skills that needed in business environment.” This vision has

already answered the criteria of good vision. The criterions of good vision are focus

on the future, concrete foundation for the organization and communicate that the

business is special and different than the others (Collins & Porras, 1996). Vision

without execution is delusion. Eureka Interview executes the vision in its goals as can

be seen in figure 1. The goals of Eureka Interview have already had BHAG (Big,

Hairy, Audicious Goals) criteria. They are also clear and compelling. The goals have

serve as unifying focal point of effort and act as catalyst for team spirit. Every goal

has its own time limit and detail term.

26

IV.2 Customer Segment

Eureka Interview‟s customer segment can be categorized as segmented market. The

customers of Eureka Interview are educated job seekers. They can be classified into

three sub-segments. These sub-segments have been reached from different

distribution channels and willing to pay different aspects for the offerings. The first

sub-segment is students who are usually at the end of their study. The second sub-

segment is educated job seekers who have already graduated from universities and

ready to enter the workforce. The third sub-segment is professionals who are trying to

find better opportunity for living in other company or having consideration in

changing their career paths.

IV.3 Value Propositions

Eureka Interview‟s value proposition was categorized in newness category. This

company has determined several problems that commonly occurred during job

interview. Those problems are: (1) job seekers are unprepared with job interview, (2)

job seekers have experienced job interview but always failed, (3) job seekers have

inappropriate manners, and (4) job seekers face difficulty in answering hard

questions. This business offers solution to overcome these problems by helping

customers‟ soft skills in job interview. During its trainings, Eureka Interview also

helping customers to build confidence, increase motivation and strengthen belief to

win the job interview.

27

Nowadays Eureka Interview focuses on job interview training which consists of three

products. The products are described as follows:

1. Job Interview Basic Training; Basic training curriculums are job interview

simulation, introduce yourself professionally and Eureka mind-set learning.

The duration of the training is five hours which is taken in one day.

2. Job Interview Premium Training; Premium training curriculums are job

interview simulation, introduce yourself professionally, Eureka mind-set

learning, advance communication technique and advance negotiation

technique. The duration of the training is ten hours which is taken in two days.

3. Job Interview Platinum Training; Platinum training curriculums are job

interview simulation, introduce yourself professionally, Eureka mind-set

learning, advance communication technique, advance negotiation technique,

communication in curriculum vitae and frequently asked question in

interview. The daily duration of the training is five hours which taken in four

times a month.

IV.4 Channel

Basic channel which utilized by Eureka Interview are communication and transaction

channels from company to the customers. At the moment, Eureka Interview chooses

to use its own channels rather than partner‟s channels. The examples of channel are

office, Internet, print advertising and mobile phone. The discussion about channels

utilized in Eureka Interview described as follows:

28

1. Office; Eureka Interview‟s office opens during workdays (Monday –

Saturday) from 9 am to 3 pm. The office layout was designed in professional

yet cozy environment. This design was purposed to create comfortable

environment for customers to discuss and share about their problems in facing

job interview. It is also coherent with the value of Eureka Interview which is

hospitality. This office is located in a strategic area at Yogyakarta so

customers can get easy access.

2. Internet; Website, twitter and Facebook are the channels for Eureka Interview

in the Internet. Eureka Interview‟s website domain is http://www.eureka-

interview.com. In the website, customers can view Eureka Interview‟s

business profile, products, prices, payment methods and contact numbers

Eureka Interview‟s twitter username is @EurekaInterview. The twitter

account is updated with Eureka Interview‟s activity reports. It also gives free

job interview tips and tricks to the customers regularly. Customers can easily

communicate through this social network. The other social network media

that is used by Eureka Interview Facebook. The fan page domain is

http://www.facebook.com/EurekaInterview. The primary function of Eureka

Interview‟s social network media is to update the nearest schedule for

trainings. Especially for Eureka Interview‟s Facebook account, it is also

updated with pictures and videos of the previous trainings.

3. Print Advertising; Not only optimizing the internet, but Eureka Interview also

promotes their products using print advertising. The objective for using this

29

product as promotional tool is to raise society awareness toward Eureka

Interview as business entity and also its products. The kind of Eureka

Interview print advertisings are leaflets, posters, x-banners, and street banners.

4. Mobile Phone; there are two modes which used by Eureka Interview in

utilizing its mobile phone: active and passive modes. The activity in active

mode for example sending promo text messages to Eureka Interview

customers‟ database. While in passive mode‟s activity, the mobile phone

functioned as a communication device between Eureka Interview and the

customers.

IV.5 Customer Relationship

Customer relationship is aimed to provide better service to the customers. Eureka

Interview uses personal assistance, one type of customer relationship. Personal

assistance helps customers understand about Eureka Interview as a company and the

products served by Eureka Interview.

IV.6 Key Resources

Eureka Interview‟s key resources can be categorized as human capital key resources.

The key resources are trained trainers and good management. Trained trainers and

good management lead business become profitable and directed. Trained trainers

satisfied the customers. Satisfied customer means profitable business. Good

management operates business in an effective and efficient ways directed to

company‟s goals, vision, and mission.

30

IV.7 Key Activities

Eureka Interview key activity is problem solving. This is the most important action

which has to be taken by this company to succeed. Eureka Interview solves

customers‟ problems using trainings and consultations.

IV.8 Key Partnerships

Strategic alliance with non-competitor organizations help Eureka Interview grows

significantly. An example of strategic alliance is partnership with universities or

student organizations in the universities. This partnership gives access to potential

customers. As part of the partnership, Eureka Interview gives free training for the

students in the universities. The students can get benefit from the experience in free

job interview training while Eureka Interview can get benefit from the opportunity to

promote its products.

IV.9 Revenue Stream

Eureka Interview revenue stream represents the cash that this company generates

from educated job seeker customer segment. This cash is resulted from delivering

value to customers. Customers who access Eureka Interview‟s service paid certain

fees based on each product‟s type. This revenue stream type called fixed pricing

mechanism in product feature dependent. Fixed pricing for each Eureka Interview

products are Rp 150,000 for Job Interview Basic Training, Rp 500.000 for Job

Interview Premium Training, and Rp 1.250.000 for Job Interview Platinum Training.

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IV.10 Cost Structure

All Eureka Interview business model building such as creating and delivering value,

maintaining customer relationships, generating revenue, getting key resources, doing

key activities and building key partnerships incur costs. The cost structure of business

model is divided into two broad classes: cost driven and value driven. Eureka

Interview‟s cost structure was classified as value driven cost structure because as

showed in table 2, the majority of the business model blocks focused on value

creation. Table 2 below presented all costs that incurred in business model blocks of

Eureka Interview.

Table 2 Cost Structure

Building Blocks Fixed Cost (Rp) Variable Cost (Rp)

Value Propositions (Training Costs)

- Training Kit 10,000

- Food & beverages 15,000

- Food & beverages (trainer) 75,000

- Trainer fee 10% from total

revenue per training

- Rent training room 150,000

Channel

- Office 3,000,000

- Internet (website) 250,000

- Internet (promo) 500,000

- Print Advertising 400,000

- Mobile phone 50,000

Customer Relationship

- Social Media Community -

- Customer Service -

32

Table 2 (continued)

Key Resources

- President Director salary 500,000

- Vice PD salary 450,000

- Administration and Finance

Director salary

400,000

- Network Director salary 400,000

- Art Director salary 400,000

Key Activities

- Training In value proposition

cost

- Consultation In channel cost

Key Partnerships

- Expand networks 50,000

Figure 2 Eureka Interview Nine Building Blocks

33

CHAPTER V STUDY RESULTS AND BUSINESS ACTION

This study was conducted in three months since October 29th

, 2011 until January 28th

,

2012. The numbers of total respondent were 43 people. They were Eureka

Interview‟s customers during this study period.

V.1 Study Results

Eureka Interview‟s customers who were also respondents of this study summarized in

Table 3.

Table 3 Customers Demography Summary

Type of Training Date Number of

Customers University Faculty

Job Interview 29 October 2011 29 UGM Economics and

Business

Job Interview 12 November 2011 4 UGM

Economics and

Business

1 UGM Forestry

Job Interview 19 November 2011 2 UGM Food

Technology

Job Interview 3 - 4 December 2011 1 UGM Engineering

Negotiation 30 - 31 December 2011 1 UNY English

Job Interview 18 -19 January 2012

2 UGM Economics and

Business

1 UGM Social and

Politics

Job Interview 27-28 January 2012 1 UGM

Economics and

Business

1 UGM Technic

Total Customers (Respondents) 43

34

The table in previous page showed that Eureka Interview‟s customers were majority

came from Faculty of Economics and Business UGM. Others customers were from

Food Technology, Forestry, Social Politics and Engineering Faculty of UGM. There

was one customer who studied in English Faculty UNY.

The customer satisfaction in this study is consists of three factors. They are customer

satisfaction in training methods, customer satisfaction in trainer performance and

customer satisfaction in training usefulness. The study results of these three factors

are shown as follow.

V.1.1 the Result of Customer Satisfaction in Training Methods

The result of customer satisfaction in training methods of Eureka Interview is

provided in table 4.

Table 4 Result of Customer Satisfaction in Training Methods

Rating Number of

Respondent Percentage

10 4 9.3%

9 15 34.9%

8 20 46.5%

7 4 9.3%

<7 - -

Mean 8.44

Mode 8

Source: Appendix 2

The result showed that in average, Eureka Interview‟s customers were satisfied with

its services. The mean of customer satisfaction in methods was 8.44. There was

55.8% respondents who rated 8 - 7 for Eureka Interview methods. It means majority

35

of customers were satisfied with Eureka Interview‟s methods. The others 44.2%

respondents rated 10 – 9 for Eureka Interview‟s methods, which means very satisfied.

None of them rated the method below seven. The results were consistent with

respondent comments. Some comments from respondent indicated that customers

were satisfied and happy with the methods. They said the overall methods are

effective, the active-learning method is interesting, the simulation method is

challenging, and the methods were applicable and relevant for job interview.

V.1.2 the Result of Customer Satisfaction in Trainer Performance

The result of customer satisfaction in trainer performance is provided in table 5. The

mean for trainer performance evaluation was 8.42. There was 58.1% respondents who

rated 8 – 7 for Eureka Interview‟s trainer performance. It means the majority of

customers were satisfied. The others 41.9% were rated 10 – 9 for Eureka Interview

trainer performance, which means they were very satisfied. None of them rated below

7.

Table 5 Result of Customer Satisfaction in Trainer Performance Results

Rating Number of

Respondent Percentage

10 4 9.3%

9 14 32.6%

8 21 48.8%

7 4 9.3%

<7 - -

Mean 8.42

Mode 8

Source: Appendix 2

36

The result is consistent with the respondents‟ comments. The respondents said that

the trainers were fun, attractive and interesting. On the other hand there are some

suggestions according to the trainer‟s performance. For training which included a lot

of participants (more than 20 people in one training), there was a tendency that the

trainer focused on one person during the training.

V.1.3 the Result of Customer Satisfaction in Training Usefulness

The result of training usefulness is provided in table 6. In average, customer

satisfaction rate in training usefulness was 8.79. Majority respondents (60.5%) rated

10 – 9 for Eureka Interview. It means majority of the respondent were very satisfied.

The other 39.5 % of the respondents rated 8 – 7 for Eureka Interview total usefulness,

which means respondent were satisfied in using Eureka Interview‟s service. None of

them rated below seven.

Table 6 Result of Customer Satisfaction in Training Usefulness

Rating Number of

Respondents Percentage

10 10 23.3%

9 16 37.2%

8 15 34.9%

7 2 4.7%

<7 - -

Mean 8.42

Mode 8

Source: Appendix 2

37

This result is consistent with the respondents‟ comments. There were a lot of

comments from customers regarding this topic. Respondents stated that Eureka

Interview trainings were very useful, impressive, cool, excellent and amazing. There

were some suggestions that were recorded from the respondents, such as increasing

the number of job interview‟s tips and tricks, providing after sales service and

inviting interviewers from multi-national companies.

V.2 Business Action

Eureka Interview‟s soft launching was held on October 28th

2011. Since the soft

opening and during research time (28 October 2011 – 28 January 2012) business

model canvas was implemented. There were some decisions which were taken by

Eureka Interview‟s management that affected nine building blocks implementation.

The implementations of nine building blocks from canvas business model are

explained below.

V.2.1 Customer Segment

Eureka Interview‟s target market is educated job seekers. During research period

some organizations had invited Eureka Interview to their campuses/offices to conduct

soft skills trainings. There were some training which related to job interview but

some were not. Eureka Interview‟s management decided to expand their target

market become university students, educated job seekers, professionals and young

entrepreneurs.

38

V.2.2 Value Propositions

Customer satisfaction‟s results showed the alignment between values proposition that

being planned and the one that being implemented in the real business. In the

product‟s side, two products have been added to Eureka Interview. There were

negotiation and presentation training. Each product consists of three sub-products

which are Basic Training, Premium Training and Platinum Training. The differences

between each sub-product are training duration, training curriculum and training

facility.

V.2.3 Channel

Office had not become a significant channel effect to brought value proposition to the

market. The effect to sales improvement was not good. Customers were not willing to

go to the management‟s office because they prefer to communicate using mobile

phone or meet in a public place like campus. Eureka Interview‟s management has

decided to move the office from R.10 University Club UGM (UC UGM) to Pogung

Baru A11, Kaliurang Street Km.5. This decision was considering capital resources

allocation.

Channels that have been proved to attract customers to Eureka Interview were print

advertising, word of mouth and internet. Internet has become a strategic information

channel to reach Eureka Interview easily. The website domain, twitter and Facebook

were free therefore it gives saving benefit to the management. These internet devices

have made Eureka Interview‟s customers convinced about the business. However,

Eureka Interview‟s Internet channel especially in website and Facebook has

39

difficulties for updating the content as planned before. These problems occurred

because the Internet channel was not becomes the first priority for promotion.

V.2.4 Customer Relationship

Eureka Interview‟s customer relation has a good role to attract customers. Some

selling process was supported by customer relation. However, Eureka Interview‟s

customer relation as one of personal assistance still in the customer acquisition phase.

The personal assistance was not good-implemented yet in customer retention and was

not able yet to boost sales using cross selling products.

V.2.5 Key Resources

Eureka Interview‟s customer satisfaction evaluation showed that trainers have good

attitude, good listener, fun, and well trained. These were shown in customer

satisfaction research results.

During research period, there was personnel replacement. The organization structure

in Eureka Interview‟s management now consists of President Director, Vice President

Director, Administration and Finance Director, Network Director and Art Director.

Excluding Art Director, the other four persons are capable to perform as trainers.

V.2.6 Key Activities

Eureka Interview has created Eureka Card as a guideline to the customers. Eureka

Card enlisted skills that customers must acquire during the trainings. It is also

functioned as controlling tool of training curriculums that were being delivered in

trainings.

40

V.2.7 Key Partnerships

Eureka Interview has been invited to some universities in Yogyakarta to conduct

some training. The Student Organization of Engineering Faculty UGM has invited

Eureka Interview in February and March 2012. Limitation of resources makes this

key partnership to other institutions was not optimally implemented yet. Eureka

Interview‟s management has made some decision changes at the beginning of the

year 2012 to solve this problem. Eureka Interview assigned network director to build

networking and to implement the potential partnerships. As result, Eureka Interview

now has an alliance with Swaragama Training Center (STC), the Strategic Business

Unit (SBU) of Swaragama FM radio station to organized job interview trainings.

V.2.8 Revenue Streams

Eureka Interview‟s revenue stream was majority come from Job Interview Premium

Training. It was about 70-80% from total revenue. In the contrary, there were no

customers who registered for Platinum Training yet. It could be happened because of

its price or inappropriate channel to offer this product.

V.2.9 Cost Structure

Eureka Interview‟s office channel was very costly. The cash was run out every month

since soft launching only for office rent. When the office has been moved to

Kaliurang Street Km.5, office cost can be eliminated. The others cost that changed

during time of study was internet promotion. Free resources had made Eureka

Interview can minimize cost structure. Now, Eureka Interview has made some

investments in print advertising cost.

41

CHAPTER VI CONCLUSION AND RECOMMENDATION

VI.1 Conclusion

There are some conclusions which come from this study‟s questions:

1. Are the customers of Eureka Interview satisfied with the services?

The evaluation stated that Eureka Interview‟s customers were satisfied with

Eureka Interview methods, trainer performance and total usefulness. It is a

good sign for Eureka Interview because it indicates that this business has an

opportunity to grow significantly in the future.

2. Is the business model of Eureka Interview implemented effectively?

Nine building blocks business model which was prepared to deliver value

added products to Eureka Interview‟s customers has been well implemented.

Customer segment and value proposition can be implemented precisely in the

market situation. The customer segments were existed and the value

proposition was really needed. However the development of new products

was not well-maintained yet.

Channel and customers relationship were the most difficult blocks to be

implemented. The prediction was not precise. There was a lot of unnecessary

cost which lost during the time of study. In the future Eureka Interview‟s

management should find better channel. Revenue streams have two more

additional sources of income in negotiation and presentation training. This

was an improvement to generate more income for Eureka Interview. Key

42

resources already have good standard for improvement in the future because

of the trainer‟s and management‟s.

Problem solving as the key activity in Eureka Interview‟s business is in good

level. The result of customer satisfaction supported this statement. Key

partnership has good progress during the study period because there were

some universities in Yogyakarta which had invited Eureka Interview.

However, the numbers of alliance organization were not significantly

improved.

VI.2 Recommendation

This study recommends Eureka Interview‟s management to precisely implementing

the nine building blocks concept. Even though there were some blocks that have been

well implemented, but there were some blocks that still need improvement. The

management should allocate resources to improve the second building blocks.

Customer satisfactions need to be maintained using after sales services. Customers‟

opinions from the questionnaire indicated that they all satisfied with Eureka

Interview‟s services. However, some distractions while delivering the services should

be surmounted in the future.

43

Some future recommendation actions that may become solution to Eureka Interview‟s

management are:

1. Build specific channel to increase platinum training‟s consumers.

2. Build appropriate channel to negotiation and presentation training services.

3. Build mechanism to evaluate referral customers.

4. Invest in office when supported by the financial cash flow.

The next research about customer satisfaction in start-up business should include

questions about consumers‟ willingness to refer product/service to colleagues, friends

or relatives. This is a better indicator for customer loyalty and will able to measure

word of mouth.

44

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APPENDIX

Appendix 1 Questionnaire

EVALUATION SHEET

1. What do you think about this training methods?

(1 very uninteresting dan 10 very interesting)

2. What do you think about the trainer performance?

(1 very uninteresting dan 10 very interesting)

3. What do you think about the traning usefulness?

(1 very uninteresting dan 10 very interesting)

IMPRESSION AND SUGGESTION

1 2 3 4 5 6 7 8 9 10

1 2 3 4 5 6 7 8 9 10

1 2 3 4 5 6 7 8 9 10

48

Appendix 2 Data Collection

No Kuesioner Pelatihan Pertanyaan 1 Pertanyaan 2 Pertanyaan 3

9 FT Okt 2011 7 8 9

10 FT Okt 2011 8 8 9

11 FT Okt 2011 8 8 9

12 FT Okt 2011 8 8 9

13 FT Okt 2011 7 8 9

14 FT Okt 2011 8 7 8

15 FT Okt 2011 8 8 8

16 FT Okt 2011 8 8 8

17 FT Okt 2011 8 8 8

18 FT Okt 2011 8 8 8

19 FT Okt 2011 8 8 8

20 FT Okt 2011 7 7 7

5 FT Okt 2011 9 8 9

22 FT Okt 2011 8 8 10

23 FT Okt 2011 8 8 9

2 BT Nov 2011 9 9 8

3 BT Nov 2011 8 9 10

4 BT Nov 2011 8 9 10

21 BT Nov 2011 9 9 10

6 BT Nov 2011 9 8 8

7 BT Nov 2011 8 7 9

8 BT Nov 2011 9 9 9

1 PT Des 2011 9 10 10

24 BT Des 2011 9 9 8

25 PT Jan 2012 9 9 9

26 PT Jan 2012 9 10 10

27 PT Jan 2012 9 9 9

28 FT Okt 2011 8 8 9

29 FT Okt 2011 9 9 10

30 FT Okt 2011 7 7 9

31 FT Okt 2011 9 8 8

32 FT Okt 2011 8 9 8

33 FT Okt 2011 8 8 9

34 FT Okt 2011 10 10 10

35 FT Okt 2011 8 8 8

36 FT Okt 2011 8 8 8

37 FT Okt 2011 10 9 8

38 FT Okt 2011 9 8 7

39 FT Okt 2011 8 9 8

40 FT Okt 2011 9 8 9

41 FT Okt 2011 10 10 10

42 BT Jan 2012 10 9 10

43 PT Jan 2012 9 9 9

49

Appendix 3 Descriptive Statistics

Statistics

Customer_Satisfaction_In

_Methods

Customer_Satisfaction_In

_Trainer_Performance

Customer_Satisfaction_In_Total_Us

efulness

N Valid 43 43 43

Missing 0 0 0

Mean 8,44 8,42 8,79

Mode 8 8 9

Customer_Satisfaction_In_Methods

Frequency Percent Valid Percent Cumulative Percent

Valid 10 4 9,3 9,3 9,3

9 15 34,9 34,9 44,2

8 20 46,5 46,5 90,7

7 4 9,3 9,3 100,0

Total 43 100,0 100,0

Customer_Satisfaction_In_Trainer_Performance

Frequency Percent Valid Percent Cumulative Percent

Valid 10 4 9,3 9,3 9,3

9 14 32,6 32,6 41,9

8 21 48,8 48,8 90,7

7 4 9,3 9,3 100,0

Total 43 100,0 100,0

Customer_Satisfaction_In_Total_Usefullness

Frequency Percent Valid Percent Cumulative Percent

Valid 10 10 23,3 23,3 23,3

9 16 37,2 37,2 60,5

8 15 34,9 34,9 95,3

7 2 4,7 4,7 100,0

Total 43 100,0 100,0