the influence of brand name, product quality, price, store

The Influence of Brand Name, Product Quality, Price,

Store Environment, Promotion, and Service Quality towards

Brand Loyalty: A Case of Jco donut and Coffee in South Jakarta

and South Tangerang

By

Maudy Riaditya Gunawan

014200900090

A Skripsi presented to the

Faculty of Business President University

in partial fulfillment of the requirements for

Bachelor Degree in Economics Major in Management

February 2015

i

PANEL OF EXAMINERS APPROVAL SHEET

Herewith, the Panel of Examiners declares that the Skripsi entitled “THE

INFLUENCE OF BRAND NAME, PRODUCT QUALITY, PRICE,

STORE ENVIRONMENT, PROMOTION AND SERVICE QUALITY

TOWARDS BRAND LOYALTY: A CASE OF JCO DONUT AND

COFFEE IN SOUTH JAKARTA AND SOUTH TANGERANG”

submitted by Maudy Riaditya Gunawan, Management Study Program, Faculty

of Business was assessed and approved to have passed the oral examination on

February 12, 2015

Liswandi, S.Pd.MM

Chair - Panel of Examiners

Purwanto, ST. MM

Examiner 1

Suresh Kumar ST, M.Si

Examiner 2

ii

SKRIPSI ADVISOR

RECOMMENDATION LETTER

This Skripsi entitled “The Influence of Brand name, Product Quality,

Price, Store Environment, Promotion and Service Quality towards Brand

Loyalty: A Case of Jco donut and Coffee in South Jakarta and South

Tangerang” prepared and submitted by Maudy Riaditya Gunawan in partial

fulfilment of the requirements for the Bachelor degree of Management in

the Faculty of Business has been reviewed and found to have satisfied the

requirements for a fit to be examined. I therefore recommend this Skripsi for

Oral Defense.

Cikarang, Indonesia, January 15, 2015.

Acknowledged by, Recommended by,

Vinsensius Jajat Kristanto SE., MM., MBA Suresh Kumar ST, M.Si

Head, Management Study Program Skripsi Advisor

iii

DECLARATION OF ORIGINALITY

I declare that this skripsi, entitled “The Influence of Brand name, Product

Quality, Price, Store Environment, Promotion and Service Quality towards

Brand Loyalty: A Case of Jco donut and Coffee in South Jakarta and

South Tangerang” is, to the best of my knowledge and belief, an original

piece of work that has not been submitted, either in whole or in part, to

another university to obtain a degree.

Cikarang, Indonesia, January 15, 2015.


iv

ABSTRACT

The growth of JCo Donuts and Coffee Indonesia has been developed rapidly in

several years back, but the lead in donuts industry in Indonesia is still centered to the

Dunkin Donuts for the last 2 years according to the Top Brands Awards Indonesia.

With the changing lifestyle of Indonesian consumers, more educated people and

affluent, people tend to eating-out especially in café or places that has a comfortable

ambience to hang out, this habit is not only followed by young generation but also the

older ones. This research aims to test and analyze the Impact of Brand Loyalty factors

toward Brand Loyalty of JCo Donuts and Coffee in South Jakarta and South

Tangerang. The six factors of brand loyalty are brand name, product quality, price,

promotion, service quality and store environment. Questionnaires were distributed

and self-administered to 350 respondents who have been visited in Jco Donut and

Coffee in South Jakarta and South Tangerang. This research is using the purposive

sampling. The result on this research has shown that brand loyalty factors (brand

name, Product Quality, Promotion and Service Quality) has influence towards Brand

royalty. Adjusted R square of 0.540 showed that 54.0% Brand Loyalty of JCo Donuts

and Coffee in South Jakarta and South Tangerang can be explained by Brand Name,

Product Quality, Promotion and Service Quality. While the remaining 46.0% are

influenced or explained by other variables not included in this research model. This

study can be a base for the next research in terms of certain variable such as Brand

Name, Product Quality, Price, Store Environment, Promotion and Service Quality.

Keyword: Brand Name, Product Quality, Price, Store Environment, Promotion and

Service Quality

v

ACKNOWLEDGEMENT

First of all, I would like to thank Allah SWT for all the blessing in my life and give me

opportunity to accomplish my skripsi requirement to obtain Bachelor Degree in President

University majoring in Management International Business. Furthermore, I would like to thank

all of people who have help and support me in accomplishing my skripsi “The Influence of

Brand name, Product Quality, Price, Store Environment, Promotion and Service Quality

towards Brand Loyalty: a Case of Jco donut and Coffee in South Jakarta and South

Tangerang”.

I would like to say thank, especially to:

My beloved family, my mother, my father and my brother, thank you for all the

prayers and sacrifices and all its support over the years, either in moral, spiritual,

and material infinite. I do not know how to describe my gratitude to all of you in

words. Thanks for everything that you gave to me.

Mr.Vincentius djajat as head of management study program in faculty of economy

and business which always strive to provide the best for the students in the Faculty

of Economics and Business.

Mr. Suresh Kumar, ST., M.Si, as my Skripsi advisor. Thank you so much for the

advice, guidance, and knowledge from the beginning until this Skripsi successfully

accomplish.

All the respondents in Jco Donut and Coffee in Pondok Indah Mall, Senayan City,

Summarecon Bsd and Bintaro Plaza, thanks a lot for spending your time to fill the

questionnaire.

Dearest my friends in PU, Susan, Dewangkara, Panjul, Sayed, al, Theo, Madonna,

Naomi and Novan, thanks for your supports and kindness during the thesis period.

My high school Friends, Vinnie, Kipli, diera, ninna, Govinda, Byandra, Ghazi,

thanks for always remind me and support.

vi

Dearest friends that I always remembered, Dede, Cilla, Rhesa, Abel, Morin,

Hussein, Abdu, Dion, Oi.

Dearest my uncle and aunty, Mang Buche, Om Irwan, Om Ebby, Wak pat, wak

dida, Bi Uli.

.

Finally, perfection is belongs to God, the author is aware that this thesis is still a lot

of shortcomings and far from perfectness. Therefore, the authors expect suggestions

and constructive criticism of this thesis to be a better and useful in the future.

Hopefully this study can add to the information and knowledge to the reader.

Cikarang, Indonesia, January 15 2015


vii

Table of Contents

PANEL OF EXAMINERS APPROVAL SHEET ......................................................... i

SKRIPSI ADVISOR ..................................................................................................... ii

RECOMMENDATION LETTER ................................................................................ ii

DECLARATION OF ORIGINALITY ........................................................................ iii

ABSTRACT ................................................................................................................. iv

ACKNOWLEDGEMENT ............................................................................................ v

Table of Contents ........................................................................................................ vii

List of Figures ............................................................................................................... x

List of Tables ................................................................................................................ x

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

INTRODUCTION ........................................................................................................ 1

1.1. Research background ..................................................................................... 1

1.2. Problem Identification ........................................................................................ 4

1. 3. Statement of problem ........................................................................................ 6

1. 4. Research Objective ............................................................................................ 7

1. 5. Research Limitation .......................................................................................... 8

1. 6. Definition of terms ............................................................................................ 8

1. 7. Significance of the Study .................................................................................. 9

CHAPTER II ............................................................................................................... 11

LITERATURE REVIEW ........................................................................................... 11

2.1. Theoretical Review .......................................................................................... 11

2.1.1. Brand Name .............................................................................................. 12

2.1.2. Product Quality ......................................................................................... 13

2.1.3. Price .......................................................................................................... 14

2.1.4. Store Environment .................................................................................... 14

viii

2.1.5. Promotion .................................................................................................. 15

2.1.6. Service Quality .......................................................................................... 16

2.1.7. Brand Loyalty ........................................................................................... 16

2.2. Previous Research ............................................................................................ 17

2.3. Theoretical Framework .................................................................................... 20

2.4. Hypothesis ........................................................................................................ 20

CHAPTER III ............................................................................................................. 22

RESEARCH METHODOLOGY ................................................................................ 22

3.1 Research Design ................................................................................................ 22

3.1.1 Research Variable ...................................................................................... 23

3.2 Population and Sample ...................................................................................... 23

3.3 Operationalization of Variables ......................................................................... 24

3.4 Data Collection .................................................................................................. 28

3.4.1 Data collecting method .............................................................................. 28

3.4.2 Type and Source of data ............................................................................. 29

3.5 Analysis method ................................................................................................ 31

3.5.1 Research instrument ................................................................................... 31

3.6 Quantitative Analysis ........................................................................................ 31

3.6.1 Validity test ................................................................................................ 31

3.6.2 Reliability test ............................................................................................ 33

3.6.3 Multiple Linear Regression Analysis ......................................................... 33

3.6.4. Classic Assumption ................................................................................... 34

3.6.5 Testing the Hypothesis ............................................................................... 36

3.6.6. Adjusted R Square .................................................................................... 36

CHAPTER IV ............................................................................................................. 37

THE ANALYSIS OF DATA AND INTERPRETATION ......................................... 37

4.1 The History of J Co Donuts and Cofee in Indonesia ......................................... 37

4.2 The analysis of Qualitative and Interpretation .................................................. 39

4.2.1 Profile of Respondents ............................................................................... 39

ix

4.3. Data Analysis (Test Validity and Reliability Test) .......................................... 48

4.3.1. Test Validity (Factor Analysis) ................................................................. 48

4.4. Analysis of Multiple Linear Regression ........................................................... 63

4.4.1. Classic Assumption Test ........................................................................... 63

4.4.2. Testing of Hypothesis ............................................................................... 66

4.5. Interpretation of result ..................................................................................... 71

CHAPTER V .............................................................................................................. 73

CONCLUSIONS AND RECOMENDATION ........................................................... 73

5.1 Conclusions ....................................................................................................... 73

5.2 Recommendation ............................................................................................... 74

REFERENCES ........................................................................................................... 77

Journals ....................................................................................................................... 78

Internet ........................................................................................................................ 81

APPENDIX ................................................................................................................. 82

x

List of Figures

Figure 1.1. TokoDonat 2012 ......................................................................................... 6

Figure 1.2. TokoDonat 2013 ......................................................................................... 6

List of Tables

Table 3. 1. Operationalization of Variables ................................................................ 23

Table 4. 2. Profile of Respondents .............................................................................. 38

Table 4.3. Score per statement item about Brand Name ............................................. 39

Table 4.4. Score per statement item about Product Quality........................................ 40

Table 4.5. Score per statement item about Price ......................................................... 41

Table 4.6. Score per statement item about Store Environment ................................... 43

Table 4.7. Score per statement item about Promotion ................................................ 44

Table 4.8. Score per statement item about Service Quality ........................................ 45

Table 4.9. Score per statement item about Brand Loyalty .......................................... 46

Table 4.10. KMO and Bartlett's Test .......................................................................... 49

Table 4.11. Communalities ......................................................................................... 49

Table 4.12. Rotated Component Matrix of Variables ................................................. 50

Table 4.13. Rotated Component Matrix of Variables ................................................. 51

Table 4.14. Final Rotated Component Matrix of Variables ........................................ 52

Table 4.15. Final KMO and Bartlett’s Test ................................................................ 53

Table 4.16. Final Communalities ................................................................................ 54

Table 4.17. Total Variance Explained ........................................................................ 55

Table 4.18. Final Rotated Component Matrix ............................................................ 56

Table 4.19. KMO and Bartlett's test............................................................................ 57


Table 4.21. KMO and Bartlett's test............................................................................ 58


Table 4.23. Total Variance Explained ........................................................................ 59

Table 4.24. Brand Name (X1) ..................................................................................... 60

Table 4.25. Product Quality (X2)................................................................................ 60

Table 4.26. Promotion (X5).........................................................................................61

Table 4.27. Service Quality (X6) ................................................................................ 62

Table 4.28. Brand Loyalty (Y) .................................................................................... 63

Table 4.29. Histogram ................................................................................................. 64

Table 4.30. Normal P-P Plot of Regression Standardized Residual ........................... 65

xi

Table 4.31. Multicollinearity ...................................................................................... 66

Table 4.32. Scatterplot ................................................................................................ 67

Table 4.33. F test – Anova .......................................................................................... 69

Table 4.34. The Model of Regression Equation ......................................................... 70

Table 4.35. The Model of Summary ........................................................................... 71

1

CHAPTER I

INTRODUCTION

1.1. Research background

One of the vital needs of the increasing population in our country is food.

There are a few number of restaurant goers to meet the necessity of food. Most of the

people in our country occasionally go to the restaurant to enjoy ethnic and some of

western food items. Unhygienic environment, poor food quality, insufficient

structural facilities, deficiency of available food items, uneducated chefs, unskilled

waitress and ineffective management system make people reluctant to consume

foods from restaurant in our country. Today, meals are more of an afterthought rather

than a planned occasion. People themselves hungry with no time cook; so they eat

out.

Nowadays, economy grows very fast along with the growth of every aspect

industry. Especially in food industry, there are so many chances are offer to people

that want to try their luck in this industry. For those people who have skilled to cook,

they usually build their own restaurant. But, for people who don’t have skill,

franchise is one of the best alternative investment because in general, restaurants who

turn into franchise already have good image from consumer and also the operation is

not complicated and the management system is already built with the standard

operation that have been done in many companies generally. In Indonesia itself,

especially in Jakarta, there are many choices of franchise that offered, from the

traditional food until international food from abroad food company. For the customer,

there are many positive aspects they can get such as they have many choices of food

2

they want just settle it with their taste and motivate local franchise company to

increase their service into international quality. Somehow, for some people, food

franchise is already become a quality assurance to be done although there is still

people who fail in this franchise business. But, for those who ran the business itself, it

is more challenging by looking there is many competitors out there, a good

management strategy is must.

In a business of services, we believe that restaurant failures are partly a result

of management's lack of strategic orientation in measuring and focusing on customer

satisfaction. Although food taste is one of the measure people will be coming to a

restaurant, there is no guarantee people will come back. As stated by Mittal and

Kamakura (2001), customer satisfaction is a key factor in formation of customer’s

desires for future purchase. Customer likes to talk about their good experiences at

purchasing something. Since resources are almost always limited, the business man

must establish priorities among the strategic moves that are likely to improve a

customer's repeat purchase. Restaurants must understand their strategy and what their

strategy means to risks associated with it. They must also understand risks generally

associated with restaurants. Restaurants face several types of risk: operational,

strategic, and economic (theinstitute.org, 2011).

Restaurants that change their menu, service staff, pricing, or other processes

face risks to their reputation. A restaurant strategically driven towards high ratings

and resulting prestige might find its rating lowered when makes menu changes.

Addressing this strategic risk requires an understanding of the criteria for being in a

particular rating category. Even if a restaurant enjoys high ratings, people’s tastes

change, and maintaining clientele requires dedicated attention to shifting customer

needs (theinstitute.org, 2011). This focus can include assessing data about which

items are ordered, customer surveys, and even informal reports from employees on

customer satisfaction. Changing trends in the sale of vegetables, herbs, and meats in

local marketplaces can also show taste changes (theinstitute.org, 2011).

3

The community in which a restaurant is located also can affect the restaurant’s

reputation. For example, if the restaurant is located in a resort community that is no

longer fashionable or goes out of business, will people continue to visit the

restaurant? The same problem exists in a mall when the customer leaves and the mall

receive less traffic. Restaurant owners must also deal with strategic risks involving

growth and expansion. Researching local economics, demographics, and changing

customer tastes before making any strategic direction changes is as important as

educating staff on cleanliness in the kitchen.

As the restaurant industry continues to grow, restaurants face increased

competition. In an effort to attract new customers and maintain current customers,

many establishments are offering additional services such as entertainment and

catering. Theme restaurants featuring movie, sports, and musicmemorabilia have also

gained popularity over the past few years. Several theme restaurants provide

entertainment not only live band or big television for them to watch during eating

anymore but they are trying to do innovations bring pleasure in dining. For example,

Beerdy Virtual Golf & Bar at Gandaria City Mall that serve customer not only with

their variety of food but also entertain them with virtual golf where customer can

enjoy playing golf in the middle of lunch or dinner. Other is Strawberry restaurant

that provide the playing Jumanji board game complete with the room to play when

they are done eating. Toys café also a place located in Senopati, where people can eat

while they can also play many kinds of games, the video games, laser tag, card

games, board games, pinball and etc. Not only games and but now people can try to

eat in the dark where they are discovering their food with no light at all, Blind café

provide food for people to enjoy in the dark, they guided and served by blind people

that believed has ability to feel anything in the dark. As the competition heats up,

many people are focusing only in those segments. But, people should pay attention

also to the bakery restaurant which has not many competitors especially in donut

segment.

4

History of Donuts come to Indonesia is begin in 1968 where American

Donuts opened their stand in Djakarta Fair, they introduce Donuts with automatic

fried machine for the first time. Followed by Dunkin Donuts in 1985 opened their

first shop at HayamWuruk, Central Jakarta. Dunkin Donuts then attract the intention

of customer up until they owned 200 franchises in Indonesia (DunkinDonuts.co.id).

On 1990, Dunkin is sold to Allied Domecq (formerly of Allied Lyons) of Great

British. They keep on moving the business to the brighter era; they even opened their

5000th

stores in Bali, Indonesia on 1999, the first Dunkin Café in Mall Taman

Anggrek, Jakarta, Indonesia on 2006 and they opened the world’s biggest store of

Dunkin Donuts in Palembang, Indonesia on 2012. On 2009, Dunkin already owned

15.000 stores all over the world. Dunkin' Donuts set a record breaking sales US$ 5

billion during 2005 - 2006 fiscal years.

The Donuts trend in Indonesia keep on development up until now there are

Master Ring, Master Donuts, Mister Donuts and others. Finally on 2005, local brand

come with its own attractiveness and many variety of products and it’s not just selling

donuts but also sell the other beverages and frozen yoghurt without override their

main products, donuts itself.

1.2. Problem Identification

JCO Donuts and Coffee owned by Johnny Andrean the hairdresser and

entrepreneur. On its owned group, despite Johnny Salon and JCo Donuts, the group

also consisted of Breadtalk and Roppan. Growth of his business keep on health

condition, knowing the market intention, Johnny tries to win the customer with his

touch in all his business. Now, JCo Donuts and Coffee already open 170 branches,

135 in Indonesia, 11 in Malaysia, 18 stores in Philippines, 4 stores in Singapore and 2

stores in China (JcoDonuts.com). The businesses keep growing, the variety of

topping and taste keep on renewal. Not only the taste of the products but Johnny

5

knows how to spoil their customer with the environment of the store, music selection,

interior/store display and not forget to mention the service quality.

For a while in Indonesia, Dunkin Donuts being a single character of Donuts

franchise, serving customers with American taste, Dunkin has a simple focus in

serving breakfast and snack for its customers. Until 2005 where Jco has been

established in Indonesia bring a new variety of products, Jco gives their customer

choice of taste and product selections. The market attract to the concept of Jco

Donuts in Indonesia, gives them a modern touch with local insight. Jco grow their

products to beverages and frozen yoghurt with topping selections.

Jco and Dunkin Donuts keep on competing their own features, stick with their

specialties they have their own customers but don’t mean that their customers are

overlapped. Those two brands are registered at TOP BRAND AWARD Indonesia as

2 biggest franchise donuts in Indonesia on last two years 2012 and 2013 with Dunkin

in the top position with 53% (2012) and 49% (2013) over 100% of the ratings. In the

second place, Jco with 40,4% (2012) and 45,3% (2013) still in position ready to

compete Dunkin Donuts with the biggest competitor for its brand in Indonesian

Market (topbrand-award.com).

As people can see in recent years, Jco donuts nowadays are more visited by

customer than Dunkin Donut. But, According to figure 1.1 and figure 1.2, it show

that Dunkin Donut still better than Jco donut. This shows that Jco Donut has less big

market share compared to Dunkin Donut. But, Dunkin Donut should be more careful

now because Jco is getting better from the past two years.

6

Figure 1.1. TokoDonat 2012

(Source: .topbrand-award.com, 2012)

Figure 1.2. TokoDonat 2013

(Source: .topbrand-award.com, 2013)

1. 3. Statement of problem

In this research, researcher discussed about how much is the impact from

brand loyalty variable towards brand loyalty of JCo Donuts & Coffee in Indonesia.

Therefore, based on the statement above this thesis title is “The Influence of Brand

name, Product Quality, Price, Store Environment, Promotion and Service Quality

7


Tangerang” specifically this research is aimed to answer the questions below:

1. To what extent do brand name, product quality, price, store environment,

promotion and service quality influence simultaneously Brand loyalty of JCo

Donuts & Coffee Indonesia?

2. To what extent does Brand Name partially influence of Brand Loyalty JCo


3. To what extent does Product Quality partially influence of Brand Loyalty JCo


4. To what extent does Price partially influence of Brand Loyalty JCo Donuts &

Coffee Indonesia?

5. To what extent does Store Environment partially influence of Brand Loyalty JCo


6. To what extent does Promotion partially influence of Brand Loyalty JCo Donuts

& Coffee Indonesia?

7. To what extent does Service Quality partially influence of Brand Loyalty JCo


1. 4. Research Objective

The main objective of this research is empirically investigating the impact of

brand loyalty variables toward brand loyalty of JCo Donuts & Coffee Indonesia.

This study is conducted to meet some following objectives:

1. To determine the influence of Brand Name, Product Quality, Price, Promotion,

Service Quality and Store Environment toward the Brand Loyalty of JCo Donuts

& Coffee in South Jakarta and South Tangerang.

8

2. To determine the influence of brand name towards the Brand Loyalty of JCo

Donuts & Coffee South Jakarta and South Tangerang..

3. To determine the influence of product quality towards the Brand Loyalty of JCo

Donuts & Coffee South Jakarta and South Tangerang.

4. To determine the influence of price towards the Brand Loyalty of JCo Donuts &

Coffee South Jakarta and South Tangerang.

5. To determine the influence of store environment towards the Brand Loyalty of

JCo Donuts & Coffee South Jakarta and South Tangerang.

6. To determine the influence of promotion towards the Brand Loyalty of JCo


7. To determine the influence of service quality towards the Brand Loyalty of JCo


1. 5. Research Limitation

This research is focusing on the customer loyalty on JCo Donuts & Coffee Indonesia

for the last two years (based on the data from Top Brand Award 2012 and 2013). The

research is conducted at South Jakarta and South Tangerang with the main target

classified between the ages of 15 – 65 years old. This target has been selected due to

the common JCo Donuts & Coffee Indonesia customer; the respondents must be a

regular customer of food franchise industry among the selected areas.

1. 6. Definition of terms

1. Brand loyalty is defined as a deeply held commitment to a preferred product or

service consistently in the future, repeated purchase and commitment despite the

situational influences and marketing efforts which have the potential to cause

switching behavior (Algesheimer et al.,2005; Şahin et al., 2011).

9

2. Brand name is the creation of an image or the development of a brand identity

and is an expensive and time consuming process (Shulz, 2012).

3. Product quality is defined as fitness of use or conformance to requirement (Rusell

and Taylor, 2006).

4. Price is the amount of money charged for a product or service, or the sum of the

values that customers exchange for the benefits of having or using the product or

service (Kotler and Amstrong, 2010)

5. Store environment is the image or impression of a store in the minds of customers

(Dunne and Lunsch, 2005)

6. Promotion is part of communication that consists of company messages designed

to stimulate awareness of, interest in, and purchase of its various products and

services (kotler, 2003).

7. Service quality is one of the vital determinants of customer satisfaction and it will

directly affect the organizational success especially in the service industry (Tat et

al., 2011).

1. 7. Significance of the Study

This research has been done on many purposes, which is divided into several

aspects

1. The Reader

To be used as source of information, secondary data, and as contribution to the

importance of brand name, product quality, price, store environment, promotion

and service quality on achieving brand loyalty.

2. The Researcher

To gain knowledge on the importance of brand name, product quality, price, store

environment, promotion and service quality affecting the brand loyalty.

10

3. Academic

As the benchmark in doing research related to the curriculum in the university.

4. The Company

It is expected to give thoughts to the company to be used as suggestion or

recommendation in increasing the brand loyalty.

11

CHAPTER II

LITERATURE REVIEW

2.1. Theoretical Review

Brand loyalty is defined as a deeply held commitment to a preferred product

or service consistently in the future, repeated purchase and commitment despite the

situational influences and marketing efforts which have the potential to cause

switching behavior (Algesheimer et al.,2005; Şahin et al., 2011). It means to have the

loyalty, consistency for servicing the customer is important. Before it, the company

should maintain a good relationship with customers. According to Bowden (2009),

Customer brand relationship is developed over a period of time due to customers’

previous experience with a brand. Brand experience is therefore conceptualized as

sensations, feeling, cognition's and behavioral responses that are evoked by brand

related stimuli such, identity, packaging, communication, as well as the brand

environment (Brakus et al., 2009). This means, customers would make a decision on

choosing a product or services and that decisions are often influence by great

marketing promotion and also friendly environments provided by the brand. These

factors changes buyers’ behavior and customers will return to a brand with great

services that guarantee the satisfaction. Leading to that the likeliness of customers

returning to brand increases as well as their loyalty (Bowden, 2009; Iglesias et al.,

2011). This since, a strong relationship is built on customers positive experiences

with the brand (Hong-Youl & Perks, 2005).

Before they become loyal, the customers should have a good experienced first

with the brand or product. Brand experience can be defined as customers perception

of the interaction with the brand such as the brand image shown in advertising,

12

personal contact or the level of quality concerning the personal treatment that the

customers receive (Alloza, 2008). To keep maintaining customer preferences, it is

essential to identify the main factors that would impact in the brand loyalty of

customers. Furthermore, the ability to create a strong brand loyalty is reflected in the

company’s values that might provide entry barriers for new competitors and increase

the ability to respond to emerging threats on the market, increase sales and revenues

and a customer base that is less sensitive to the marketing efforts by competing

brands (Delgado-Ballester & Munuera-Alemán, 2001). The company should not only

to keep maintain good relationship with customer, but with a good price also.

Punniyamoorthy et al., (2007) further states that loyalty is affected by perceived

value, trust, satisfaction and commitment. It can determine Brand name, product

quality, price, store environment, promotion and service quality are very important to

achieve. Brand loyalty, is a very important concept in understanding consumer

behavior (Lee et al., 2001; Wood, 2004). Loyal consumers only buy the same brand,

even when there is other brand in the market (Ryan et al., 1999)

2.1.1. Brand Name

Brand can be defined as a type of product manufactured by a particular

company under a particular name. Brand name can represent the image of a product.

The main importance of brand name is to attract the customers, more famous the

brand name people have, the more customers they get. As stated by Keller (2003),

famous brand name can disseminate product benefits and lead to higher recall of

advertised benefits than non-famous brand names.

Brand name should be unique and easy to remember that will attract

customers and give an insight to the reputation of companies in market with

preference to their names (Keller, 2008). Brand name distinct product of companies

than that of the rivals and give competitive advantage over competitors (Zeugner -

Roth, et al., 2008)

13

To develop a successful brand name are need a long way process, the brand

name should represent the image of the product. A brand name is a highly loaded

variable in the factor of branding, and is found to be the most important element

affecting a restaurant’s performance; brand name is the creation of an image or the

development of a brand identity and is an expensive and time consuming process

(Shulz, 2012). The development of a brand name become an essential part of process

since it will impact the brand image will be in the future. From the findings, a

restaurant should aim most of its advertising efforts at enhancing customer awareness

so that customers at least consider that brand in the suggested set of alternatives

(Shulz, 2012). Brand name can be a main attributes to push the success of a product.

When people are recognize the brand and knowing what they will get from buying a

brand it will be a huge investment that already planted in a customer’s mind of what

benefits will they get from a single purchase.

2.1.2. Product Quality

Product quality is defined as fitness of use or conformance to requirement

(Rusell and Taylor, 2006). Product is a manufactured creates by someone and refined

for sale. Product quality is the characteristic of a product or performance as a measure

of satisfy needs. If the products have good quality, consumer will repeat purchase.

People will recognize big brand or famous brand names but at the end, the product of

quality is the main factor people tend to repeat purchase.

The value of purchase that guarantees their satisfaction will be trigger of

people being a repeat customer. In service industry context product quality is

considered as service quality that includes the approach how that service provider for

example the airline, restaurants, banks and retail stores serve their customers, how the

product they offer satisfy customer needs as physical quality of product and how such

particular product apparently communicate that brand image to build brand loyalty an

14

d in result brand equity (Chang and Yen 2002). More you are reliable in terms of

your product quality more customers will be satisfies with your product.

2.1.3. Price

According to Cadogan and Foster (2000), price is probably the most important

consideration for the average consumer. Consumers with high brand loyalty are

willing to pay a premium price for their favored brand, so their purchase intention is

not easily affected by price. The importance of price is as a measurement that

indicated between goods and the money to pay. People will evaluate the market price

before they decide to buy something.

For loyal customers, they willing to pay high cost for the product from some

brand they trust. Loyal customer are willing to pay more for brand or product that

they already aware and trusted rather than try something new with same price. Even

the price are gaining, the intentions of purchase still high because the perceive risk

are paid by the brand trust. Loyal customers are willing to pay a premium even if the

price has increased because the perceived risk is very high and they prefer to pay a

higher price to avoid the risk of any change (Yoon and Kim, 2000).

Price can be defined as the amount of money or exchange value to be given to

pay product or service (Han, 2009). According to bucklin et al (2002), price

significantly influences consumer choice and incidence of purchase. People can to

buy product when the price is low, the discount pricing attempt to be main influence

to consume the product. Han (2009) claim that one of the most adaptable factors

which improved quickly is the pricing.

2.1.4. Store Environment

Success or failure of a restaurant depends partly on the physical environment

of restaurants (Parsa et al., 2011). Some attributes going to be a big impact to attract

the customer. Those attributes such as store location, store layout, the interior, music

15

and ambience are matters for customer satisfaction. it will give a big impact for

customer to repeat their purchase and become a loyal customer. Environment failures

of restaurants lead to operational inefficiencies and eventual loss of competitive edge,

ultimately leading to customer losses (Parsa et al.,2011).

Fields (2007), poor concept that is not differentiated is one of the primary

reasons for restaurant failures. The store in strategic location is more profitable since

the probability of accidentally of purchase will be higher. Locations can be one of the

most important things in business since it gave more benefits rather than a store in

less strategic location.

2.1.5. Promotion

Promotion is one of marketing mix attributes which is kind of communication

with customer. These activities are helping the company to enhance the loyalty of the

brand through personal selling companies promote the products and their service and

this efforts of the company increase the purchase intension of the consumer and

positive attitude towards the product and as well as the image of the organization (To

and Leung, 2001). It can be included the advertising, sales promotion, personal

selling and publicity. A good price promotion should communicate to customer what

the benefit they will get and what the company will provide. price promotions have

accounted for the main share of the marketing budget in most consumer packaged

goods categories (Srinivasan, et al., 2004). Promotions are also one of media to show

that the product is different with other brands.

Kotler and Armstrong (2006) agreed and added that promotions are beneficial

to retailers in several aspects: First, promotional variables such as in-store display and

‘‘two for-one’’ are often used to trigger unplanned purchases. Promotion also can

encourage customer to purchase or consume the product with many attracting ways.

With promoting their brands, the company tries to increase the awareness of their

products and somehow gain the profit from the purchase. One of the importance of

16

promotion is to attract customer preferences and to see how the products perform in

the market.

2.1.6. Service Quality

Service is kind of performance that's proposed by 1 get together to an

alternative and also within corporeality can be although to part of it (Kotler & Keller,

2006). Customer spends the money not only for the product but also for the service

they will get. People tend to make assessment in their mind that the money they

spend should be equal with the product and service quality will be received by them.

Poor of service quality can cause loss of interest and break the perception of the

brand image itself. On the other hand, Wong (2004) found that service quality

positively would affect emotional satisfaction that in turn would have positive effect

on both customer loyalty and relationship quality

Brand loyalty is wide concept and is impacted by many factors and service

quality is one of the major determinants of customer brand loyalty (Zeithaml and

Bitner, 2003) Zeithaml and Bitner (2000) suggested that consumers judge the quality

of the services based on their perceptions of the technical outcome provided, the

process by which the outcome is delivered, and the quality of the physical

surroundings where the service is delivered.

2.1.7. Brand Loyalty

Brand loyalty is the costumers’ tendency for buying some goods from one

brand repeatedly rather than buying from competitors’ brand. Brand loyalty by any

customer not only represent the repeat purchase of that brand but sometimes it also

refers to the psychological commitment of that customers toward that brand therefore,

brand loyalty not only mean that customer will not purchase that brand most often but

also he or she will refute to purchase any other brand of same or better quality as

compare to the old one he or she is loyal to that brand (Rehman et al., 2007).

17

Numerous researchers believed that antecedents of brand loyalty are dynamic

and complex in nature that evolves over time with the changing needs of customers

(Johnson, Herrmann, and Huber, 2006). Researchers highlighted that there are still

somefactors that need to be understand and need to be analyzed from the perspective

of customer loyalty with any specific brand (Taylor, Hunter, and Longfellow, 2006)

Various researchers defined brand loyalty in different ways. Relationship

theory of brand suggests that, brand is a tool that connects customers and suppliers to

the firm and is a mean to sustain such relationship in long run (Davis,Oliver,

&Brodie, 2000; Chang & Chieng, 2006). Customers tend to try a new product first

just to get to know the product performance. If they feel satisfy with the new product,

they are willing to purchase and the chance of being loyal customer increase.

2.2. Previous Research

No. Title/Research Research Design Result

1. Influence of brand loyalty

on consumer sportswear

(WOONG FONG YEE

AND YAHYAH SIDEK,

2008)

A total of 100 sets of

questionnaires were

distributed to

respondents at the

Bandar Baru Bangi and

Serdang areas. The

sampling used is

purposive sampling

distributed to multiple

ethnicity namely Malay,

Chinese, Indian and

other race. Descriptive

analysis is used to

analyze the background

as well as the

respondent’s profiles

pertaining to their

evaluation of brand

The research result

showed that there is

positive and

significant

relationship

between factors of

brand loyalty (

brand name, product

quality, price, style,

promotion, service

quality and store

environment ) with

sportswear brand

loyalty

18

loyalty. Pearson

correlation used to test

seven independent

variables (brand name,

product quality, price,

style, promotion, service

quality and store

environment) that

influenced consumer

brand loyalty and to test

if a relationship existed

between the independent

and dependent variables.

2. Factors influencing

customer loyalty towards

fast food restaurant

(HOSSEIN NEZAKATI,

YEE LEE KUAN AND

OMID ASGARI, 2011)

This study chooses to

use exploration research.

There are 230 self

administered

questionnaire were

distributed direct

distribution to

respondent and small

portion of questionnaire

are distributed through

email. This study using

the non-probability

sampling is used to

conduct the survey. The

techniques of data

analysis in this study is

the multiple regression

linear analysis.

These three

variables (product

quality, customer

satisfaction and

brand trust) are

significant at 0.05

significant values

the findings indicate

that Malaysian

consumers are

concern on product

quality of a fast

food

3. Determinant of factors that

influence consumer in

choosing normal full-

service restaurant: case in

The primary data

collected through

questionnaires given

away to students who

Consumers are put

heavy priorities on

food quality,

followed by

19

seriiskandar, perak (YONG

AZRINA ALI AKBAR

AND MUHARRATUL

SHARIFAH

ALAUDEEN, 2012)

have the specified

criteria and the total was

150 respondents.

Researcher applied

convenience sampling

method. The data was

analyzed using Factor

Analysis technique.

trustworthiness,

service quality,

price, environment

and location in

choosing normal

full-service

restaurant

4. A Study on determining the

factors that influence the

customer value in the fast

casual restaurants (H.

RAFET YUNCU,

OKTAY EMIR AND

YALEIN

ARSLANTURK, 2013)

The study using

quantitative

methodology. The data

was collected through a

questionnaire. Previously

total respondents are

300, after the analysis

was done out the total

respondents change to

247 using random

sampling. The

questionnaires were

analyzed using the

Structural Equation

Modeling (SEM).

There are four basic

dimensions have

determined:

product, support

services, service and

price, and also the

customer have

expressed that the

atmosphere of the

restaurant is

important

20

2.3. Theoretical Framework

2.4. Hypothesis

H1: Brand name has significant influence towards Brand Loyalty

H2: Product Quality has significant influence towards Brand Loyalty

H3: Price has significant influence towards Brand Loyalty

H4: Store Environment has significant influence towards Brand Loyalty

Brand

Loyalty

Six factors that influence

customers brand loyalty

adapt from Wong Feng

Yee and YahyahSidek

(2008) and Nezakati et

al.,(2011)

Brand name

Product quality

Price

Promotion

Store

Environment

Service quality

H2

H3

H4

H5

H6

H1

H7

&7

21

H5: Promotion has significant influence towards Brand Loyalty

H6: Service Quality has significant influence towards Brand Loyalty

H7: Brand name, Product Quality, Price, Promotion, Service Quality and

Store Environment have simultaneously influence towards Brand

Loyalty

22

CHAPTER III

RESEARCH METHODOLOGY

3.1 Research Design

In doing a research, researcher can use two kinds of methods. There are

qualitative and quantitative. Quantitative research is scientific investigation that

includes both experiments and other systematic methods that emphasize control and

quantified measures of performance (Proctor & Capaldi, 2006 cited in Hoy, 2009).

Quantitative research, which usually expressed as scores, consists of empirical

observation and mathematical expression which becomes the central of

measurement and statistics (Taylor, 2005).

According to Glesne & Peshkin (as cited in Thomas, 2003) quantitative

methods focus on measurements or amounts (such as more and less, larger and

smaller), the researcher will seek about the explanation by analyzing those numbers

and the role is to observe and measure by using sampling strategies and

experimental design as important aspects.

On the other hand, qualitative research is an experiments that deals with

words (verbal, narrative, and descriptive), data collection done through direct

observation, interviews, and written documentation (Taylor, 2005). Qualitative

research is way to take deeper meanings of particular experience through

observations on the person, this method seems more flexible than the other one

because it allows the research procedures to develop from the observations that

collected and accept the researcher to use a subjectivity to get deeper understanding

from the experience observed (Rubin & Babbie, 2011).

23

In this research, researcher used quantitative method to support the

research conducted. The purpose of using quantitative is by some advantages, such

as: the result is statistically reliable if the research conducted properly, means that

researcher can directly identify whether the idea, concept, product, or service is

better than the alternatives. The second is that the results are projectable to the

population (Nykiel, 2007).

3.1.1 Research Variable

This research consists of seven variables, which are six Independent Variables

and one dependent variable. The independent ones are brand name denoted in X1,

product quality denoted in X2, price denoted in X3, store environment denoted X4,

promotion denoted in X5, and service quality denoted X6. Whereas, the dependent

one is brand loyalty denoted in Y.

3.2 Population and Sample

Sample size or the number of samples taken to be an important issue when the

type of research to be done is research that uses quantitative analysis. Roscoe (1975)

in Sekaran (2010) provided guidance on the determination of the number of samples

should be among 30 to 500 elements. According to Supranto (2001) in which he

stated that size of the sample can be determined by calculating with below formula:

5 × 𝑞

Where q defines the number of questions in questionnaire.

By that formula, minimum number of respondent in this research is 175

because there are 35 questions. Researcher spread 350 just in case there are

questionnaires lost or left unfinished as those will not be counted. The number of 350

is very applicable according to Roscoe (1975) in Sekaran (2010) in which he stated

24

that number of samples should be among 30 to 500 elements. Population is the whole

object or subject in a region and meets certain conditions and related with the

problems which the sample chosen for an exact purpose. A person is chosen as

sample because the researcher assumes that the person has relevant information

towards the research and fulfilled the criteria that are already determined by the

researcher (Ferdinand, 2006).

Based on that explanation, the samples in this study were selected as many as

350 respondents and eligible to be processed there as much as 327 respondents.

3.3 Operationalization of Variables

Table 3. 1. Operationalization of Variables

No. Variable Statement Research

1. Brand Name Q1. Distinctive, simple, clear and

ease too recognize logo

WOONG FOONG

YEE and

YAHYAH SIDEK

(2013)

Q2. Has been familiar to urban

society

WOONG FOONG

YEE and

YAHYAH SIDEK

(2013)

Q3.Delicious and distinctive with

similar products

WOONG FOONG

YEE and

YAHYAH SIDEK

(2013)

Q4.Simple and attractive package WOONG FOONG

YEE and

YAHYAH SIDEK

(2013)

Q5.It had patent right WOONG FOONG

YEE and

25

YAHYAH SIDEK

(2013)

2. Product Quality Q1. Favorable and containing

Vitamin required by human body

FR SOFIA (2013)

Q2. Sterile food preparation

process and assured with

qualified materials with halal

certificate

FR SOFIA (2013)

Q3. Delicious and distinctive

with similar products

FR SOFIA (2013)

Q4. Willing to pay more for

delicious taste

FR SOFIA (2013)

Q5. Having various tastes and

flavors

FR SOFIA (2013)

3. Price Q1. Offered price is affordable

for customer

WOONG FOONG

YEE and

YAHYAH SIDEK

(2013)

Q2. Varying price for each

product type

WOONG FOONG

YEE and

YAHYAH SIDEK

(2013)

Q3. Price is competitive for

similar product

WOONG FOONG

YEE and

YAHYAH SIDEK

(2013)

Q4. Product price includes tax

and service

WOONG FOONG

YEE and

YAHYAH SIDEK

(2013)

26

Q5. Offered Price equals to

product quality

WOONG FOONG

YEE and

YAHYAH SIDEK

(2013)

4. Store Environment Q1. Outlet is located in strategic

location

WOONG FOONG

YEE and

YAHYAH SIDEK

(2013)

Q2. Outlet lay out is attractive

enough for customers

WOONG FOONG

YEE and

YAHYAH SIDEK

(2013)

Q3. Interior design in is attractive

enough

WOONG FOONG

YEE and

YAHYAH SIDEK

(2013)

Q4. Outlet placement makes

product easy to see

WOONG FOONG

YEE and

YAHYAH SIDEK

(2013)

Q5. Easing customer to buy

products

WOONG FOONG

YEE and

YAHYAH SIDEK

(2013)

5. Promotion

Q1. Promotion conducted by

outlet is attractive

WOONG FOONG

YEE and

YAHYAH SIDEK

(2013)

Q2. Promotion is conducted

selectively by the corporation

WOONG FOONG

YEE and

YAHYAH SIDEK

(2013)

27

Q3. Used promotion media WOONG FOONG

YEE and

YAHYAH SIDEK

(2013)

Q4. Promotion is often conducted WOONG FOONG

YEE and

YAHYAH SIDEK

(2013)

Q5. Promotion is selectively

conducted through leaflet and

product package

WOONG FOONG

YEE and

YAHYAH SIDEK

(2013)

6. Service Quality Q1. Physical facilities of service

visually attractive

WOONG FOONG

YEE and

YAHYAH SIDEK

(2013)

Q2. Service visually convincing

and enjoyable

WOONG FOONG

YEE and

YAHYAH SIDEK

(2013)

Q3. Devices to conduct services

are modern enough

WOONG FOONG

YEE and

YAHYAH SIDEK

(2013)

Q4. Service can be accessed from

telephone for delivery order

WOONG FOONG

YEE and

YAHYAH SIDEK

(2013)

28

Q5. Short waiting time for

service Service can be accessed

from telephone for delivery order

WOONG FOONG

YEE and

YAHYAH SIDEK

(2013)

3.4 Data Collection

3.4.1 Data collecting method

The data used in this research are collected in two step. The first step done by

collecting data through analysis test instrument question or remark that aims to see

the level of validity and reliabilities instrument question or statement said. The

second step, data that has been tested through the level of validity and the reliability

will be analyzed by software spss 18 for windows to see the influence of between

each variable research.

This type of research is a research with descriptive analysis method.

Analytical descriptive survey method is a method of research that takes from a

population and use the questionnaire as a data collection tool. In this study the data

and information collected from respondents using a questionnaire. After the data is

retrieved and then the results will be presented in a descriptive and at the end of the

research will be analyzed to test the hypothesis put forward at the beginning of this

research.

Meanwhile data collecting method obtained using:

1. Literature study

In this case the researcher obtains the data by literatures and other journals

that are appropriate regarding the problem that are investigated.

29

2. On-field study

The researcher obtains the data directly to the research object by:

3. Observation

By holding observation directly to the objects that JCo's restaurant &coffee in

South Jakarta and Tangerang (Bumi Serpong Damai).

4. Questionnaire

By spreading questionnaire that contained structured statement to get the

require information from the respondent.

3.4.2 Type and Source of data

The data of this research obtain from two resources, which are primary data

and secondary data.

1. Primary Data

Primary data defined as the way of collecting the data from

original source for the first time by researcher or investigator

for their own purpose (Kothari, 2004), or a process of

collecting data for the first time for a certain research

(McMurray, Pearson, Scott, & Pace, 2004) sometimes also

called as first-hand information.

1. Survey

In this research the primary data collected by survey

method through distributing questionnaire. According to

Mahotra and Pearson, 2002 in (Tandi, 2008) Survey is a

structured questionnaire given to a sample of population

and designed to specific information from respondent. In

30

this research, the primary data collected by survey method

through distributing the questionnaire.

2. Questionnaire

Questionnaire method usually used for big quantity of

respondents, and can be distributed directly, via internet,

e-mail, or post to the respondents. In this research,

questionnaire using likert scale, the most favored

measuring tool nowadays, it does not require the

respondents to rate the items but the researcher prepares it

(McNabb, 2013). The objective of this measurement is to

see the extent of participant agreement with each item.

3. Demographic

This study has a clear demographic orientation,

characteristic considered in this study were age and

gender. The respondents should meet the requirements

before fill in the questionnaire offered, they have to be a

regular customers at food franchise industry around South

Jakarta and South Tangerang.

2. Secondary Data

Secondary data are those data or information that already exist and

collected by someone else for his or her study (Kothari, 2004). Usually

this information is merely a compilation of some data based on the

study or research done before. Secondary data can be various, such as

archives, company sources, records, and others. In this research, those

secondary data collected from books and journals.

31

3.5 Analysis method

To solve the problem in this research, the researcher implemented quantitative

analysis.

3.5.1 Research instrument

The data obtained from the results of the questionnaire to each variable will

be given score with Likert scale. Where an alternative answer to the respondent was

given a score of 1 to 6, with an alternate answer strongly agree, agree, Agree with

doubt, Doubt with disagree, disagree, strongly disagree (Chomeya,2010).

3.6 Quantitative Analysis

Quantitative analysis is the analysis of data that obtained from the research

with a statistical method for measuring the amount of influence the variables. To

know the influence of the variables, the testing of hypotheses tested by calculation

statistics. A quantitative analysis used in this research is:

3.6.1 Validity test

Validity test is a tool that uses to measure the validity of a questionnaire. In

short, it is concerning to what was to be measured was actually measured. Validity

also defines as the degree to which evidence and a theoretical rationale support the

standard and defines the appropriateness of summary and actions based on the scores

of data or information (Lissitz, 2009). Researcher tested validity using Factor

Analysis.

Factor analysis is a multivariate statistical procedure that used to

examine all the variables for interdependence (Malhotra, 2010). In general, this

method used to examine small number of factors that used to represent relationship

32

among interrelated variables. According to Nunnally in Yamaguchi (2008) there are

several steps in factor analysis to be tested:

1. KMO and Barlett Test

This research is using factor analysis to find out what extent independent

variables influence dependent variable. There are two criteria used to determine

whether factor analysis appropriate statistically by Kaisar-Meyer-Olkin (KMO)

measure of adequacy and Bartlett Test of sterility (Simamora, 2005). The standard of

KMO value should be more than (0.5), when KMO is less than (0.5), the factor

analysis is not appropriate to use (Child, 2006). Bartlett Test of sterility is a statistical

test used to test either variable in the research has correlation or not (Simamora,

2005). The significant value of Bartlett test should be significant (p < 0.05) for factor

analysis to be suitable (Wiliams, 2012).

2. Communalities

According to Malhotra (2010), communalities is the appropriate test shows

the amount of variance (in percentage) a variable that can be defined by the formed

factors. The standard of communalities values should be greater than (>0.5). When

there are the value less than (0.5) then the item of question should be taken out. The

greater communalities value of one variable will create the strong relation with the

formed factors.

3. Total Variance

In total variance table, there is cumulative column which representing a

percentage of the variance being explained in this study. The requirement of

33

cumulative percentage is 60%, but it would be great if the percentage is much higher.

(Lehner & Bredl, 2011).

4. Factor Rotation

Rotated component matrix show the factor loading of each variable on the

component and represent the partial correlation between item and rotated factor.

Factor loading show the correlation between variable and components (Santoso,

Statistik Multivariat, 2010).

3.6.2 Reliability test

Reliability test is an instrument to measure the questionnaire as indicators

from variables (Ghozali, 2001). Since unreliable construct cannot be valid, the first

thing to do is asses the reliability test. Reliability test is purposed to describe the

overall consistency of a measurement and seek the correlation’s answer between

respondent (K.Malhotra, 2010). The measuring process has been done with statistic

Cronbach Alpha (α). According to Nunnaly (1967) in Ghozali (2001), the following

decision rule of the reliability test is as follows:

a. if the Cronbach Alpha value is above 0,6 the following variable is reliable

b. if Cronbach Alpha value is below 0,6 the following variable is not reliable

3.6.3 Multiple Linear Regression Analysis

Regression analysis is a study that used to define the dependence of dependent

variable on one or more independent variable, to estimate the average value of

dependent variable (Ghozali as cited in Andini, 2012). Regression with more than one

independent variable called as multiple regressions, a condition when two or more

independent variables are used in a linear regression analysis (Richter, 2012). The

general form of the multiple regressions can be formulated as:

34

Y = a + b1X1 + b2X2 + b3X3 + b4X4 + b5X5 + b6X6 + e

Where:

Y define as the dependent variable (Brand loyalty)

X1 = variable 1 (Brand name)

X2 = variable 2 (Product quality)

X3 = variable 3 (Price)

X4 = variable 4 (Store environment)

X5 = variable 5 (Promotion)

X6 = variable 6 (Service quality)

3.6.4. Classic Assumption

3.6.4.1. Normality

Defines as a basic assumption in regression, where residuals are distributed in

a normal and independent way. In the case of measuring the normality of a study,

researcher can check whether the distributions are illustrated through a straight line in

the plot or not (Richter, 2012). Ghozali (2006) stated that normality test can be

detected through scatter plot performance on the diagonal line in the graph, or by

analyze the histogram. Based on:

a. If the data are scattered around diagonal line and come after the line or

the histogram graph perform a normal distribution form, meaning that the normality

assumption is acceptable.

35

b. If the data are not scattered around diagonal line and/or not come after

the line or the histogram graph does not perform a normal distribution form, meaning

that the normality assumption is not acceptable.

3.6.4.2. Multicollinearity

It refers to a situation in which more than one explanatory variables are

linearly dependent (Van den Poel and Lariviere, 2004) and multicollonearity used to

calculate the matrix value. T

His situation can be detected by:

a. When regression having a similarity value with R2, which is very high. But

there are a lot of not significant independent variables.

b. There are several variables with eigen value closer to zero. (Prastisto, 2004)

Ghozali (2006) explain about multicollinearity test can be detected by two

ways. The first, tolerance value and the opposite, the second is VIF (Variance

Inflation Factor). If the tolerance value is 0.10 or less and equal to VIF of 10, means

that there is an exact collinearity detected (Jacob Cohen, 2013).

3.6.4.3. Heterocedasticity

Represent the variances of error terms that might occur in regression model

are not constant over different sample observations. The figure will indicates that the

magnitude of error terms is a function of the size of object being studied (Lee, Lee, &

Lee, 2013). This method will help in defines a problem when researcher would like to

estimating parameters in the regression model. The easiest way in examine a

heterocedasticity is by look at the plot of the residuals against the independent

variables or expected values. (Lee, Lee, & Lee, 2013). To detect a heterocedasticity

in a research can be done by analyzing the scatter plot. If the scatters plot form a

36

particular pattern, meaning that there is a heterocedasticity in the regression. On the

other hand, if the scatter plot does not perform particular pattern, there is no

heterocedasticity detected (Prastisto, 2004).

3.6.5 Testing the Hypothesis

To accept and reject the research hypothesis that has been formulated, t test an

f test is needed.

a. F test

F test usually using ANOVA (Analysis of variance), F test is used to test the

significance of the overall multiple regression model. This test determines whether

there is significant relationship between the dependent variable and independent

variables (Berenson, Levine, & Krehbiel, 2005). If the significance level for the F-test

is less than (<0.05), means rejecting H0 and conclude that the relationship between

variables does exist, and vice versa.

b. T test

T test usually using coefficients table, which is used to determine the effect of

each independent variable toward dependent variable. This test aims to see whether

independent variable partially influence dependent variable partially (Malhotra,

2010). If the significant <0.05, Ha do not rejected and H0 rejected. Otherwise, if the

significant >0.05, Ha rejected and H0 do not rejected.

3.6.6. Adjusted R Square

According to Malhotra (2010) adjusted R square used to find out the relation

between two or more independent variables with dependent variable. The value of R

is around 0 to 1, the relation is stronger when the value approaches 1, vice versa.

37

CHAPTER IV

THE ANALYSIS OF DATA AND INTERPRETATION

4.1 The History of J Co Donuts and Cofee in Indonesia

The J-Co is owned by Johnny Andrean, an owner network business franchise

of salon and BreadTalk in Indonesia. J-Co is inspired by USA donuts. Johnny is

always doing business trips to USA and having chance to enjoy various kinds of

flavors and uniqueness donuts. First time, he wanted to buy a network marketing

franchise of USA donuts but he found several product limitations. The limitations are

on raw material and weakness in quality control.

Then Johnny decided to develop his own production without having to buy

franchise donut from USA. He chose to produce a perfect shape and sense donuts as

he had tried in the USA, with a special focus on the quality of raw materials and

production processes.

38

On his return to Indonesia, he develops a donut outlet with the similar

concept, shape and taste with USA donut outlets. Johnny has observed that none of

Indonesian donut outlets, which has an open kitchen concept, so he started in J.CO.

Thus, in addition to having a different flavor, the concept of the outlet is also created

as an open kitchen so the consumers can see the various attractions in the making of

donuts, from mixing the ingredients until the donuts ready for sale.

J.Co donuts are made by machines, including mixing the ingredients, cooking

and making donuts toppings. The only human labor is only at the time of making

donuts, which also use the mold tool.

All machines used fully imported from USA, also with the basic ingredients,

more than 50% is imported from abroad. For example, chocolate and milk, chocolate

is imported from Belgium and milk from New Zealand. And for drinks, the

ingredients mostly imported. Most coffee powder imported from Italy and Costa

Rica. Based on all this, J.CO is positioned as a premium-quality product in the

Indonesian market donuts.

Some people may argue that J.CO logo has similarities with the Starbucks

logo, but if observed carefully, it is different. The spherical shape may be the same,

but it is not a trademark.

39

J.CO Donuts & Coffee uses peacock symbols on their logo. The peacock

symbolizes beauty, neatness, softness and timelessness. The beauty and subtlety

reflected from flavors and shapes of donut. While immortality can be seen from the

Loyalty of consumers who are willing to stand in the long queue stores just to get

their favorite J-Co donut.

Each donut creatively named based toppings and flavors. This creates a

unique and easy to remember, for example, Chees Me Up is the name for a donut

with melted cheese on top layer. Tira Miss U is the name for a donut with tiramisu

topping.

Johnny take three years before launching J.CO Donuts & Coffee to the

Indonesian market. Three years used to prepare standards and production procedures,

selection of raw materials, improve the quality of products and production processes,

as Good as business operations.

However, J.CO has been presented in the Indonesian market. The first outlet

opened in Supermall Karawaci Tangerang (not far from Jakarta) on June 26, 2005.

J.CO Donuts & Coffee in Indonesia is controlled and owned by Johnny himself,

while overseas outlet franchise, Good known J.CO Donuts & Coffee franchise is

owned by Singapore's BreadTalk group.

JCO is now opened for franchise and spread abroad. Enjoy J.CO.

4.2 The analysis of Qualitative and Interpretation

4.2.1 Profile of Respondents

This study was conducted on 350 consumers J.Co Donuts and Coffee in

Indonesia by distributing questionnaires. The questionnaire distributed directly to the

350 consumers to be filled completely in accordance with the existing conditions.

40

From the 350 questionnaires, only 327 questionnaires were returned, so that the data

used in this study only 327 questionnaires. It shows that the rate of return the

questionnaire by consumers J.Co Donuts and Coffee in Indonesia quite good, which

amounted to 93.4%. The profile of the respondents in this study can be seen in the

following table:

Table 4. 2. Profile of Respondents

Characteristic of Responden Number %

Sex gender

- Male 171 52,29

- Female 156 47,71

Total number 327 100

Level of Education

- < S-1 101 30,89

- S-1 128 39,14

- S-2 98 29,97


Profession

- Officer 148 45,26

- Collage student 106 32,41

- Etc 73 22,33


Source: Processed Data, 2014

Table 4.2 shows that consumers J.Co Donuts and Coffee in Indonesia, mostly

are male with a number of 171 people (52.29%); mostly have higher education (S1

41

and S2) with a number of 226 people (69.11%) and the majority of the civil servants,

employees and entrepreneurs profession with the number of 148 people (45.26%).

Descriptive statistics aims to provide an overview or description of the data in

the form of responses or perceptions respondents on Brand Name, Product Quality,

Price, Store Environment, Promotion, Service Quality, and Brand Loyalty in J.Co

Donuts and Coffee in Indonesia, so it can be more easily understood.

According to Martiasrus (2013) These are analytical formula descriptions

percentage used to calculate observation results:

Percentage (%): n/N x 100 %

Where n: Score obtain

N: The total number of the ideal value of each item multiplied by the

number respondents

These are the descriptive score (Martiasrus, 2013) refer to the percentage:

01 % – 20 % : Very Poor

21 % – 40 % : Poor

41 % – 60 % : Enough

61 % – 80 % : Good

81 % – 100 % : Very Good

Based on respondents' answers, it can be seen criteria respondents rating

based on Brand Name, Product Quality, Price, Store Environment, Promotion,

42

Service Quality, and Brand Loyalty in J.Co Donuts and Coffee in Indonesia as

follows:

4.2.2.1 Respondents on Brand Name

Based on the answers of respondents on Brand Name to J.Co Donuts and

Coffee in Indonesia obtained a score of answers and assessment criteria for each of

the following:

Table 4.3. Score per statement item about Brand Name

No Statement

real

Score

Expectation

score % Category

1 The simple logo and easily

understood 1456 1635 89,05 Very Good

2 Goodknown in urban people 1040 1635 63,61 Good

3 The delicious taste and

different with another 1228 1635 75,11 Good

4 The simple packaging and

interesting 1150 1635 70,34 Good

5 Have patents 838 1635 51,25 Enough

Total numbers 5712 8175 69,87 Good


Based on table 4.3 that nearly all the items on the statement to measure the

Brand Name on J.Co Donuts and Coffee in Indonesia show the criteria of "Good",

even a statement about the "clarity of the logo" to obtain the assessment criteria of

"Very Good". This suggests that the Brand Name on J.Co Donuts and Coffee in

Indonesia on a per-item statement almost everything is "good", but the item statement

about "ownership of patent rights" obtain the lowest level of achievement is 51.25%

with assessment "Enough". However, the general consumer valuation of Brand Name

on J.Co Donuts and Coffee in Indonesia is "good" with the level of achievement of

69.87%.

43

4.2.2.2 Respondents on Product Quality

Based on Table 4.4 show almost all of the items to measure Product Quality

statement on J.Co Donuts and Coffee in Indonesia get criterion of "Good". This

indicates that the Product Quality at J.Co Donuts and Coffee in Indonesia on a per-

item statement almost is "good", but the item statement about "the process of

manufacture and the presence of halal certificates" reach the lowest level of

achievement (46.24 %) with assessment "Enough". However, the general consumer

valuation of Product Quality on J.Co Donuts and Coffee in Indonesia is "good" with

the level of achievement is 63.60%.

Based on the answers of respondents on Product Quality in J.Co Donuts and


the following:

Table 4.4. Score per statement item about Product Quality

No Statement

Real

Score

Expectation

score

% Category

1

Many people like it and

contain anuseful vitamin for

body.

1195 1635 73,09 Good

2

The manufacturing process is

steril and secured with

quality ingredients and have

“halal” certificate.

756 1635 46,24 Enough

3

The delicious taste and

different with another

product

1055 1635 64,52 Good

4 Willing to pay more for

delicious taste 929 1635 56,82 Enough

5 Have various taste 1264 1635 77,31 Good

Total number 5199 8175 63,60 Good


44

4.2.2.3 Respondents on Price

Based on Table 4.5 it show that almost all of the items to measure statements

about Price on J.Co Donuts And Coffee In Indonesia are “Good” criteria ,even the

statement about the "appropriateness of the price with the customer and the ability to

price variations" get assessment “very Good“ criteria. This indicates that Price on

J.Co Donuts And Coffee In Indonesia on a per-item statement almost everything is

"good", but the statement about the item "product price includes taxes and service"

reach the lowest level of achievement (43.73%) with assessment "Good Enough"

criteria. However, the general consumer valuation of Price on J.Co Donuts and

Coffee in Indonesia is "good" with the level of achievement of 73.98%.Based on the

answers of respondents about Price on J.Co Donuts and Coffee in Indonesia obtained

a score of answers and assessment criteria for each of the following:

Table 4.5. Score per statement item about Price

No Statement

Real

Score

Expectation

score % Category

1

The offered price is

accordance with the

customer ability

1357 1635 83,00 Very Good

2 The cost of each type of

product varies 1465 1635 89,60 Very Good

3 The price is competitive

with similar product 1287 1635 78,71 Good

4 The product price include

taxes and services 715 1635 43,73 Enough

5 The price is suitable with the

quality of the product 1224 1635 74,86 Good



45

4.2.2.4 Respondents of the Store Environment

Based on Table 4.6 it appears that nearly all the items on the statement to

measure the Store Environment on J.Co Donuts And Coffee In Indonesia get "good"

criteria even the statement about "strategic location and attractive outlets" get

assessment "Very Good" criteria. This indicates that the Store Environment on J.Co

Donuts And Coffee In Indonesia as a per-item statement almost everything is "good",

but the statement about the item "Placement Outlet" get the lowest level of

achievement (34.01%) with the " Enough" assessment. However, the general

consumer valuation of Store Environment on J.Co Donuts and Coffee in Indonesia is

"good" with the level of achievement of 64.23%.

Based on the answers of the respondents of Store Environment on J.Co

Donuts and Coffee in Indonesia obtained a score of answers and assessment criteria

for each of the following:

Table 4.6. Score per statement item about Store Environment

No Statement

Rreal

Score

Expectation

score % Category

1 The available outlet is on

strategic location. 1337 1635 81,77 Very Good

2 Booth layout is quite

attractive to buyers 1344 1635 82,20 Very Good

3 The outlet interior design is

quite interesting 1228 1635 75,11 Good

4

Placement Outlet is

harmonious and show

available product

556 1635 34,01 Enough

5 Make easier for buyers to

buy products 786 1635 48,07 Enough



46

4.2.2.5 Respondents on Promotion

Based on Table 4.7 it appears that all of the items to measure statements about

the Promotion J.Co Donuts and Coffee in Indonesia get “Good” criteria, even the

statement about "selective Promise" obtain assessment “Very Good” criteria. This

suggests that the Promotion at J.Co Donuts and Coffee in Indonesia on a per-item

statement almost everything is "good", and in general consumer valuation of

Promotion on J.Co Donuts and Coffee in Indonesia is "good" with the level of

achievement 75, 22%.

Based on the answers of respondents on the Promotion J.Co Donuts and


the following:

Table 4.7. Score per statement item about Promotion

No Statement

Rreal

Score

Expectation

score % Category

1 The promotion get many

attention 1204 1635 73,64 Good

2 Promotion of the company is

selective 1335 1635 81,65 Very Good

3 The promotion media used 1271 1635 77,74 Good

4 The huge number of used

promotion media 1101 1635 67,34 Good

5

The promotion is selectively

by let live and product

packages

1238 1635 75,72 Good

6 Total number 6149 8175 75,22 Good


4.2.2.6 Respondents on Service Quality

Based on Table 4.8 it appears that nearly all the items on the statements to

measure Service Quality in J.Co Donuts And Coffee In Indonesia get “enough”

47

criteria, even the statement about "telephone service" assessment criteria to obtain

"Poor" with the level of achievement of the most low (30.82%). However, the

general consumer valuation of the Service Quality on J.Co Donuts and Coffee in

Indonesia is "Enough" to the level of achievement of 55.84%.

Based on the answers of respondents, Service Quality in J.Co Donuts and

Coffee In Indonesia obtained a score of answers and assessment criteria for each of

the following:

Table 4.8. Score per statement item about Service Quality

No Statement

Rreal Score

Expectation

score % Category

1 The physical facility of

services is attractive 1264 1635 77,31 Good

2 The services is convincing

and enjoyable 1279 1635 78,23 Good

3 The tool used for service is a

quite modern. 819 1635 50,09 Enough

4

The customer

communication and store is

easily understood

699 1635 42,75 Enough

5

The services can be

accessed by phone for

delivery order

504 1635 30,82 Poor

Total number 4565 8175 55,84 Enough


4.2.2.7 Respondents on Brand Loyalty

Based on Table 4.9 it appears that almost all of the items to measure statement

about Brand Loyalty on J.Co Donuts and Coffee in Indonesia get the “good” criteria.

This indicates that Brand Loyalty on J.Co Donuts And Coffee In Indonesia on a per-

48

item statement almost everything is "good", but the item statement about "the buying

back" get the lowest level of achievement is 43.06% with the assessment " Enough "

criteria. However, the general consumer valuation of Brand Loyalty on J.Co Donuts

And Coffee In Indonesia is "good" with the level of achievement 60.65%.

Based on the answers of respondents, Brand Loyalty on J.Co Donuts and


the following:

Table 4.9. Score per statement item about Brand Loyalty

No Statement Real Score

Expectatio

n score % Category

1

If I want to buy a J-Co product, I will

buy it again because I have known the

J-Co product quality

704 1635 43,06 Enough

2

I would recommend J-Co product to

others because I have felt the comfort

afforded by the J-Co product

1003 1635 61,34 Good

3

I am willing to pay more for the J-co

because had proven of quality, price, etc

and have competitive price with similar

product

1166 1635 71,31 Good

4 If one day I am not satisfied with the

service J-Co, I will tell to J-Co outlet 1070 1635 65,44 Good

5 I'm interested in increasing the number

of another J-Co products 1015 1635 62,08 Good



4.3. Data Analysis (Test Validity and Reliability Test)

4.3.1. Test Validity (Factor Analysis)

In order to find out what extent independent variable influence mediator and

dependent variable, this research using factor analysis to analyze the most influence

factor in this research. The first step is testing the all of independent variables.

49

4.3.1.1 Factor Analysis of Independent Variables

1. KMO and Bartlett test

Table 4.10. KMO and Bartlett's Test

Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .826

Bartlett's Test of Sphericity Approx. Chi-Square 6.556E3

Df 435

Sig. .000

Kaiser-Meyer-Olkin criterion (value are between 0 to 1) cand 0.826 is quite

high and acceptable. On the other hand, Bartlett test also accepted if the significance

is less than 0.05, in this research the significance is 0.0001.

Based on table below, all the variables are acceptable because they meet the

requirement of communalities value which should be above 0.5. So, there is no need

to take out any question from the questionnaire.

2. Communalities

Then the researcher tried to run the next factor analysis by using the variables

in the table 4.11. The result is as follows:

The result of table 4.12 shows that Store Environment (X4) variables are

separated one to another or not in the same component. So, the reseracher try to re-

run the process by excluding the Store Environment (X4) variables. The result is as

follows:

50

Table 4.11. Communalities

Initial Extraction

X11 1.000 .717

X12 1.000 .753

X13 1.000 .779

X14 1.000 .776

X15 1.000 .849

X21 1.000 .631

X22 1.000 .537

X23 1.000 .583

X24 1.000 .662

X25 1.000 .794

X31 1.000 .645

X32 1.000 .712

X33 1.000 .657

X34 1.000 .668

X35 1.000 .747

X41 1.000 .677

X42 1.000 .758

X43 1.000 .554

X44 1.000 .716

X45 1.000 .680

X51 1.000 .685

X52 1.000 .804

X53 1.000 .750

X54 1.000 .635

X55 1.000 .669

X61 1.000 .810

X62 1.000 .664

X63 1.000 .676

X64 1.000 .732

X65 1.000 .783

Extraction Method: Principal

Component Analysis.

51

Table 4.12. Rotated Component Matrix of Variables

Rotated Component Matrixa

Component

1 2 3 4 5 6

X41 .802

X31 .773

X42 .760

X35 .748

X25 .702

X32 .648

X33 .586

X21 .577

X23 .552

X43

X54

X44 .806

X65 .804

X63 .708

X45 .702

X64 .683

X34 .672

X22 .648

X24 .555

X52 .812

X53 .809

X55 .722

X51 .683

X13 .817

X12 .800

X11 .553

X61 .813

X62 .586

X15 .836

X14 .539 .593

Extraction Method: Principal Component Analysis.

Rotation Method: Varimax with Kaiser Normalization.

a. Rotation converged in 7 iterations.

The result of table 4.13 shows that Price (X3) variables are separated one to

another or not in the same component. So, the reseracher try to re-run the process by

excluding the Price (X3) variables. The result is as follows:

52

Table 4.13. Rotated Component Matrix of Variables


Component

1 2 3 4 5 6

X53 .796

X52 .774

X51 .761

X55 .708

X65 -.862

X32 .758

X63 -.650

X11 .647 .531

X24 .781

X23 .740

X21 .706

X13 .855

X12 .815

X61 .847

X62 .768

X33 .509

X15 .923

X14 .698




The result on table 4.14, showed that there are correlations between the

variables and the factors. Then the reseacher re-run the factor analysis by

using those variables. The result shown as follows :

53

Table 4.14. Final Rotated Component Matrix of Variables


Component

1 2 3 4

X53 .806

X52 .786

X51 .761

X55 .658

X24 .826

X23 .695

X21 .694

X22 .644

X12 .844

X13 .778

X14 .764

X61 .839

X62 .776




Table 4.15. Final KMO and Bartlett’s Test

KMO and Bartlett's Test

Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .798

Bartlett's Test of Sphericity Approx. Chi-Square 1.884E3

Df 78

Sig. .000

54

Kaiser-Meyer-Olkin criterion (value are between 0 to 1) and 0.798 is

acceptable. On the other hand, Bartlett test also accepted if the significance is less

than 0.05, in this research the significance is 0.0001.

Table 4.16 - Final Communalities

Communalities

Initial Extraction

X12 1.000 .792

X13 1.000 .705

X14 1.000 .653

X21 1.000 .717

X22 1.000 .584

X23 1.000 .555

X24 1.000 .703

X51 1.000 .712

X52 1.000 .769

X53 1.000 .724

X55 1.000 .646

X61 1.000 .776

X62 1.000 .784

Extraction Method: Principal Component

Analysis.

Based on table 4.16, all the variables are acceptable because they meet the

requirement of communalities value which should be above 0.5. Those accepted

variables are: Brand Name 2 (X12), Brand Name 3 (X13), Brand Name 4 (X14),

Product Quality 1 (X21), Product Quality 2 (X22), Product Quality 3 (X23), Product

Quality 4 (X24), Promotion 1 (X51), Promotion 2 (X52), Promotion 3 (X53)

Promotion 5 (X55), Service Quality 1 (X61), and Service Quality 1 (X61).

3. Total Variance Explain

As we can see from table 4.17, cumulative percentage is 69,384% which is

good because it represents that 69.38% of the independent variable offered are cover

up factors that influencing dependent variable.

55

Table 4.17. Total Variance Explained

Total Variance Explained

Component

Initial Eigenvalues Extraction Sums of Squared Loadings Rotation Sums of Squared Loadings

Total % of Variance Cumulative % Total % of Variance Cumulative % Total % of Variance Cumulative %

1 5.102 39.246 39.246 5.102 39.246 39.246 2.557 19.667 19.667

2 1.515 11.651 50.897 1.515 11.651 50.897 2.445 18.804 38.472

3 1.373 10.561 61.458 1.373 10.561 61.458 2.272 17.476 55.948

4 1.030 7.926 69.384 1.030 7.926 69.384 1.747 13.437 69.384

5 .733 5.640 75.024

6 .693 5.330 80.355

7 .591 4.543 84.898

8 .554 4.263 89.160

9 .380 2.923 92.083

10 .317 2.436 94.519

11 .289 2.220 96.739

12 .227 1.750 98.489

13 .196 1.511 100.000


4. Rotated Component Matrix

As per result on table 4.16, there are correlations between the variables

and the factors. The first factor loading is Brand Name variable, which

are Brand Name 2 (0.792), Brand Name 3 (0.705), Brand Name 4

(0.653). Next is Product Quality variable, which are Product Quality 1

(0.717), Product Quality 2 (0.584), Product Quality 3 (0.555), Product

Quality 4 (0.703). Next is Promotion variable, which are Promotion 1

(0.712), Promotion 2 (0.769), Promotion 3 (0.724) Promotion 5

56

(0.646). The last one is Service Quality variable, which are Service

Quality 1 (0.776), and Service Quality 1 (0.784)

Table 4.18 – Final Rotated Component Matrix


Component

1 2 3 4

X53 .806

X52 .786

X51 .761

X55 .658

X24 .826

X23 .695

X21 .694

X22 .644

X12 .844

X13 .778

X14 .764

X61 .839

X62 .776




4.3.1.2 Factor Analysis of Dependent Variable

1. KMO and Bartlett test

Kaiser-Meyer-Olkin value should be between 0 to 1. The closer to 1 the better

the value. The dependent variable’s KMO value is 0.721 which is acceptable. On the

other hand, Bartlett test also accepted if the significance is less than 0.05, in this

research the significance is 0.0001

57

Table 4.19. KMO and Bartlett's test

2. Communalities


Based on table 4.20, not all the variables are acceptable because there are two

values which below 0.5. Therefore, those dependent variables will be taken out

The final results of dependent variable are:

58

Table 4.21. KMO and Bartlett's test

Based on table 4.21, KMO and Bartlett of dependent variable has been

accepted from both side. With KMO 0,617 and Bartlett is less than 0.05, in this

research the significance is 0.0001.


Based on result after reprocess, all the variables are acceptable because their

value are above 0.5. From table 4.22 the remaining variables are Y3, Y4, and Y5.

3. Total Variance Explain

Table 4.23. Total Variance Explained

59

Total variance explained of dependent variable is 69,628 %. This variable

does not have rotated component matrix because just have one component.

4.3.1.3 Reliability

Reliability is an index that indicates the extent to which a measuring

instrument measures the same symptoms and the results show the same, the

instrument measurement is reliable. In other words, reliability indicates the

consistency of a measuring instrument for measuring the same phenomenon.

Reliability of the research instrument in this study was tested using Cronbach's Alpha

coefficient. Decision-making is based on if the value of Cronbach's Alpha variable

exceeds 0.6 then the question is reliable and vice versa (Ghozali, 2005). The results

of the reliability testing are as follows:

1. Brand Name

Table 4.24 Brand Name (X1)

Reliability Statistics

Cronbach's Alpha N of Items

.791 3

Item-Total Statistics

Scale Mean if Item

Deleted

Scale Variance if

Item Deleted

Corrected Item-

Total Correlation

Cronbach's Alpha

if Item Deleted

X12 7.29 3.899 .697 .643

X13 6.70 4.209 .650 .697

X14 6.94 4.475 .554 .798

Source: SPSS Output

60

Based on the result on table 4.24, cronbach’s alpha of Brand Name

variable is 0.791, which is good. There is one item can be deleted if

the researcher want to increase the alpha value.

.

2. Product Quality

Table 4. 25. Product Quality (X2)



.761 4


Scale Mean if Item

Deleted

Scale Variance if

Item Deleted

Corrected Item-

Total Correlation

Cronbach's Alpha

if Item Deleted

X21 8.38 6.512 .644 .658

X22 9.72 7.760 .502 .736

X23 8.81 7.046 .511 .731

X24 9.19 6.033 .598 .686

Source: SPSS Output

Based on the result on table 4.25, cronbach’s alpha of Product Quality

variable is 0.761, which is good. There is no item can be deleted to increase the alpha

value.

61

3. Promotion

Table 4.26. Promotion (X5)



.832 4

Source: SPSS Output

Based on the result on table 4.26, cronbach’s alpha of Promotion variable is

0.832, which is good. There is no item can be deleted to increase the alpha value.

4. Service Quality

Based on the result on table 4.27, cronbach’s alpha of Service Quality variable

is 0.701, which is good. There is no item can be deleted to increase the alpha value.

Table 4.27. Service Quality (X6)


Scale Mean if Item

Deleted

Scale Variance if

Item Deleted

Corrected Item-

Total Correlation

Cronbach's Alpha

if Item Deleted

X51 11.76 6.989 .574 .827

X52 11.35 6.782 .756 .749

X53 11.55 6.561 .707 .766

X55 11.65 6.743 .620 .806



.701 2

62

Source: SPSS Output

.

5. Brand Loyalty

Based on the result on table 4.28, cronbach’s alpha of Brand Awareness

variable is 0.775, which is good. There is one item can be deleted to

increase the alpha value.

Table 4.28. Brand Loyalty (Y)


Scale Mean if Item

Deleted

Scale Variance if

Item Deleted

Corrected Item-

Total Correlation

Cronbach's Alpha

if Item Deleted

Y3 6.38 4.585 .524 .786

Y4 6.67 3.866 .578 .742

Y5 6.84 3.860 .751 .546

Source: SPSS Output


Scale Mean if Item

Deleted

Scale Variance if

Item Deleted

Corrected Item-

Total Correlation

Cronbach's Alpha

if Item Deleted

X61 3.91 1.032 .547 .a

X62 3.87 1.424 .547 .a

a. The value is negative due to a negative average covariance among items. This violates

reliability model assumptions. You may want to check item codings.



.775 3

63

Based on the table above shows that the variable Brand Name (X1), Product

Quality (X2), Promotion (X5), Service Quality (X6) and Brand Loyalty (Y) indicates

the value of the coefficient of Cronbach's Alpha exceeds 0.6. Those condition means

that all of these variables can be used in subsequent analysis.

4.4. Analysis of Multiple Linear Regression

4.4.1. Classic Assumption Test

The data in regression model should meet the requirement of assumption tests.

Classical assumption test including normality test, Heterocedasticity test, and

multicollinearity test.

4.4.1.1 Normality Test

The first normality histogram in table 4.29 shows that the data spread to the

entire normal curve area, which means the data has a normal distribution. Normality

P-plot chart also shows that the data spread around the diagonal line, which means

the data also has a normal distribution.

Table 4.29. Histogram

64

Table 4.30. Normal P-P Plot of Regression Standardized Residual

4.4.1.2 Multicollinearity

Multicollinearity test aims to test whether the regression model find a

correlation between the independent variables. The general guidelines to limit the

value of tolerance and VIF to the regression model is free from multicollinearity is

above 10% for tolerance and below of 10 for VIF (Variance Inflation Factor). The

result in the table 4.31 shows all the variables have not any multicolinearity

problems.

65

Table 4.31. Multicollinearity

Independent

Variable

Collinearity Statistic Decision

Tolerance VIF

Brand Name

(X1)

0.769 1.301 There is no

multicollinearity

problems

Product Quality

(X2)

0.547 1.830 There is no

multicollinearity

problems

Promotion (X5) 0.581 1.723 There is no

multicollinearity

problems

Service Quality

(X6)

0.715 1.398 There is no

multicollinearity

problems

4.4.1.4 Heterocedasticity

The data in table 4.32 is formed like a tunnel or particular pattern increases,

which is means the data shows a heterogeneous. Otherwise, when the plot appears to

be spread randomly, then the data is not heteroscedasticity (Widarjono, 2010).

Table 4.32. Scatterplot

66

4.4.2. Testing of Hypothesis

The Statistical tools were used to test the hypothesis is multiple linear

regression (multiple regression). The aim is to connect multiple linear regression of

the dependent variable with several independent variables in a single predictive of

capital. The influence of the independent variable on the dependent variable was

tested at a significance level of 5%. The decision-making criteria in the acceptance

and rejection of each hypothesis are to compare the calculated value with the value

table for each regression coefficient. If the calculated value is smaller than the table

value, the hypothesis of Ho is rejected and vice versa if the calculated value is greater

than the table value, then Ha is accepted. In addition to the comparison criteria

calculated value with the value of the table, also used the criteria of p value. P value ≥

0.05 then Ho is rejected (insignificant) and vice versa p value ≤ 0.05 then Ha

accepted (significant).

4.4.2.1. F Test – ANOVA

F test or ANOVA table is used to understand the influence of all independent

variables toward dependent variables. In table 4.33, F test result shows in the table is

(96.501) with significant value (0.000) which means that independent variables

simultaneously influence dependent variable.

F test is used to determine whether there is influence jointly (simultaneously)

from the independent variables (free) to the dependent variable (bound) between the

independent variables in the model between variables of Brand Name (X1), Product

Quality (X2), Price (X3), Store Environment (X4), Promotion (X5), Service Quality

(X6) on the dependent variable (dependent) Brand Loyalty (Y). Proving is done by

looking at the magnitude of the probability value (p value) compared to 0.05 (Level

of significance α = 5%). The test criteria were used as follows:

67

Ho: There are no effect Brand Name (X1), Product Quality (X2), Price (X3),

Store Environment (X4), Promotion (X5), Service Quality (X6) on Brand Loyalty (Y)

Ha: There are influence of Brand Name (X1), Product Quality (X2), Price

(X3), Store Environment (X4), Promotion (X5), Service Quality (X6) on Brand

Loyalty (Y).

The test results of multiple linear regression model obtained F value is 96.501

with a significance probability of 0.000. Thus Ho is rejected and Ha is accepted, it

means that the variables Brand Name (X1), Product Quality (X2), Price (X3), Store

Environment (X4), Promotion (X5), Service Quality (X6) as simultaneously have

significant impact on Brand Loyalty (Y)

Table 4.33. F test - Anova

ANOVAb

Model Sum of Squares df Mean Square F Sig.

1 Regression 4095.350 4 1023.838 96.501 .000a

Residual 3416.307 322 10.610

Total 7511.657 326

a. Predictors: (Constant), Service Quality, Brand Name, Promotion, Product Quality

b. Dependent Variable: Brand Loyaliti

4.4.2.2. T-Test (Coefficients Table)

Analysis of Multiple linear regression was used to determine the influence of

the independent variables (independent), are Brand Name (X1), Product Quality

(X2), Price (X3), Store Environment (X4), Promotion (X5), Service Quality (X6) to

variable bound (dependent) are Brand Loyalty (Y) which can be calculated by using

the SPSS software SPSS for Windows 18. The calculation results together can be

seen in the following table:

68

Table 4.34. The Model of Regression Equation

Source: Primary data processed with SPSS software

Based on the above table, obtained the model multiple linear regression

Standardized Coefficients as follows:

𝑌 = −1.380 + 0.135𝑋1 + 0.276 𝑋2 + 0.211𝑋5 + 0.560 𝑋6

The multiple linear regression models can be interpreted as follows:

a. The coefficient of regression of the variable X1 (Brand Name) obtained 0.135

with a positive coefficient. This indicates that the variables Brand Name

contributes positively to Brand Loyalty of 0.135 or 13.5% with an estimated

standard error are 0.052.

b. The coefficient regression of variable X2 (Product quality) obtained 0,276

with positive coefficient. This indicates that the product quality variable have

positive contribution to Brand Loyalty with 0.276 or 27,6 % and estimated

standard error are 0,061.

c. The regression coefficient of X5 variable (Promotion) of obtained 0.211 with

a positive coefficient. This indicates that the variable of Promotion makes a

Model

Unstandardized Coefficients Standardized Coefficients

T Sig. B Std. Error Beta

1 (Constant) -1.380 1.026 -1.345 .180

Brand Name .135 .052 .112 2.619 .009

Product Quality .276 .061 .231 4.551 .000

Promotion .211 .057 .183 3.703 .000

Service Quality .560 .061 .408 9.177 .000

a. Dependent Variable: Brand Loyaliti

69

positive contribution to the Brand Loyalty with 0.211 or 21.1% and estimated

standard error as 0.057.

d. The regression coefficient of the variable X6 (Service Quality) obtained 0,560

with the positive coefficient. This indicates that the variable of Service

Quality has positive contribution to Brand Loyalty with 0.560 or 56.0% and

estimated standard error as 0.061.

The coefficient of determination (R²) of the factors that have corrected the

error or bias in the population (Adjusted R Square) shows a fairly high value. The

coefficient of determination (R ²) Adjusted R Square means that the variable Brand

Name (X1), Product Quality (X2), Promotion (X5), Service Quality (X6) are able to

explain the dependent variable (dependent) Brand Loyalty (Y) of 0.540 or 54.0%

while the rest influenced by other factors which is not included in the theory.

Table 4.35. The Model of Summary

Partial Test is used to determine the effect of each independent variables

Brand Name (X1), Product Quality (X2), Promotion (X5), Service Quality (X6) on

the dependent variable, Brand Loyalty (Y). The Partial Test conducted by comparing

the t value with the value of the t table. In addition to the t test also saw the

Model Summaryb

Model R R Square Adjusted R Square

Std. Error of the

Estimate

1 .738a .545 .540 3.257

a. Predictors: (Constant), Service Quality, Brand Name, Promotion, Product

Quality


70

magnitude of the probability value (p value) compared with 0.05 (Level of

significance α = 5%).

Based on Table 4.34 above the regression model, it can be described as

follows:

a. Hypothesis Test of brand name influenced (X1) to Brand Loyalty (Y)

Brand name has significant value of 0.009 and it is smaller than 0.05

(Level of significance α = 5%). This means that the variable Brand Name

(X1) have significant positive impact on Brand Loyalty (Y). While the views

of the value of the regression coefficient Brand Name variable (X1) is

positive, it indicates that the increasing respondents' perceptions about Brand

Name (X1) can result in an increasing in Brand Loyalty (Y). It can be

concluded that H1 is accepted.

b. Hypothesis Test of product quality influenced (X2) to Brand Loyalty (Y)

Product quality has significant value of 0.000 and it is less than 0.05

(Level of significance α = 5%). This means that the variable of Product

Quality (X2) have significant and positive effect on Brand Loyalty (Y). While

the views of the value of the regression coefficient of the variable Product

Quality (X2) is positive, it indicates that the increase in respondents'

perceptions of Product Quality (X2) can result an increasing in Brand Loyalty

(Y). It can be concluded H2 is accepted.

c. Hypothesis Test of Promotion influenced (X5) to Brand Loyalty (Y)

Promotion has significant value of 0.000 and it is less than 0.05 (Level

of significance α = 5%). This means that the variable of Promotion (X5) have

significant and positive impact on Brand Loyalty (Y). While the views of the

71

value of the regression coefficient Promotion variable (X5) is positive, it

indicates that the increase in respondents' perceptions of Promotion (X5) can

result an increasing Brand Loyalty (Y). It can be concluded H5 is accepted.

d. Hypothesis Test of Service quality influenced (X6) to Brand Loyalty (Y)

Service quality has significant value of 0.000 it is less than 0.05 (Level

of significance α = 5%). This means that the variable of Service Quality (X6)

have a significant and positive impact on Brand Loyalty (Y). While the views

of the value of the regression coefficient of the variable Service Quality (X6)

is positive, it indicates that the increase in respondents' perceptions of Service

Quality (X6) can result increasing Brand Loyalty (Y). It can be concluded H6

is accepted.

4.5. Interpretation of result

The test results of multiple linear regression model obtained F value indicate

that the independent variables Brand Name (X1), Product Quality (X2), Price (X3),

Store Environment (X4), Promotion (X5), Service Quality (X6) as simultaneously

have significant impact on Brand Loyalty (Y). This result is equal to the researches

by Woong Fong Yee and Yahyah Sidek (2008) which indicates that brand loyalty

variables has significance impact to brand loyalty.

From the calculation of the t value greater than the table value, while the

magnitude of the probability is smaller than 0.05 (Level of significance α = 5%). This

means that the variable Brand Name (X1) have significant positive impact on Brand

Loyalty (Y). This result is related to the research by Woong Fong Yee and Yahyah

Sidek (2008) that Brand Name has significant impact to Brand Loyalty.

From the calculation of the t value greater than the table value, while the

magnitude of the probability less than 0.05 (Level of significance α = 5%). This

72

means that the variable of Product Quality (X2) have significant and positive effect

on Brand Loyalty (Y). This result is related to the research by Woong Fong Yee and

Yahyah Sidek (2008) that Product Quality has significant impact to Brand Loyalty.

This result also related to the research by Hossein Nezakati, Yee Lee Kuan And

Omid Asgari, (2011) entitled Factors influencing customer loyalty towards fast food

restaurant that shows Product Quality has significant impact to customer loyalty

towards fast food restaurant.

From the calculation of the t value obtained greater than the table value, while

the magnitude of the probability value less than 0.05 (Level of significance α = 5%).

This means that the variable of Promotion (X5) have significant and positive impact

on Brand Loyalty (Y). This result is related to the research by Woong Fong Yee and

Yahyah Sidek (2008) that Promotion has significant impact to Brand Loyalty.

From the calculation of the t value obtained greater than the table value of,

while the magnitude of the probability value less than 0.05 (Level of significance α =

5%). This means that the variable of Service Quality (X6) have a significant and

positive impact on Brand Loyalty (Y). This result is related to the research by Woong

Fong Yee and Yahyah Sidek (2008) that Service Quality has significant impact to

Brand Loyalty. This result is also related to the research by Yong Azrina Ali Akbar

And Muharratul Sharifah Alaudeen, (2012) entitled Determinant of factors that

influence consumer in choosing normal full-service restaurant: case in seri iskandar,

perak that shows Service quality has significant influence towards consumers in

choosing normal full-service restaurant.

73

CHAPTER V

CONCLUSIONS AND RECOMENDATION

5.1 Conclusions

Based on the results of research and discussion on The Influence of Brand

name, Product Quality, Price, Store Environment, Promotion and Service Quality


Tangerang, it can be concluded as follows:

1. The Brand Name in J.Co Donuts and Coffee in Indonesia generally is "good", but

the statement about the items' ownership of patent rights "show the lowest level

of achievement of the assessment" Enough "criteria and Brand Name have a

positive and significant impact on Brand Loyalty. This can be seen in the results

of the regression test showed that the beta value for Brand Name is a positive and

hypothesis testing results show that the value p is smaller than the value of alpha.

2. The Product Quality on J.Co Donuts And Coffee In Indonesia generally is

"good", but the item statement about "the process of creation and existence of

halal certificate" get the lowest level of achievement of the assessment " Enough"

criteria and The Product Quality have the positive effect and significant impact on

Brand Loyalty. It can be seen in the regression test results showing that the value

of beta for Product Quality is positive and hypothesis testing results show that the

value p value is smaller than the value of alpha.

3. Price on J.Co Donuts and Coffe in Indonesia generally is “good’. But the item has

been eliminated because in the factor rotation process, Price items were separated

one to another or not in the same component. So, the researcher re-run the factor

analysis process without including those price items.

74

4. Store Environment on J.Co Donuts and Coffe in Indonesia generally is “good’.

But the item has been eliminated because in the factor rotation process, Store

Environment items were separated one to another or not in the same component.

So, the researcher re-run the factor analysis process without including those Store

Environment items.

5. Promotion on J.Co Donuts and Coffee in Indonesia generally is "good", and

Promotion have positive and significant impact to Brand Loyalty. It can be seen

in regression testing show beta value for promotion is positive and the result of

hypothesis testing show p value is smaller than alpha value.

6. Service Quality on J.Co Donuts And Coffee In Indonesia generally is "Enough",

even on the item statement about "telephone service" obtain the lowest level of

achievement with the assessment criteria of "Poor" and Service Quality have the

positive and significant impact to Brand Loyalty. It can be seen in the regression

test results showing that the value of beta for the Service Quality is positive and

hypothesis testing results show that the value p is smaller than the value of alpha.

7. Apart from the variables that already discussed above, there might be other

factors that are not mentioned in this study. Since all the independent variable can

only predict 54%, the other factors might come from external, for example

Customer satisfaction, Brand Image, Brand Trust, Place or the Location of the

store and etc.

5.2. Recommendation

Based on the above conclusions, the attempts that must be done by J.Co

Donuts and Coffee in Indonesia for increasing Brand Loyalty is as follows:

75

1. For the company

Based on the result above, the ownership of the patent rights has a low score,

probably driven by the name of J.Co did not representative of Indonesian

name, so people referring more to the foreign brand. Company must put more

focus to emphasize J.Co as a local brand with international standard to attract

more interest that Indonesian has a really good brand that can be compared to

the international brand.

Majority of Indonesian citizen are Moslem, the “halal” label can be a

trigger for people to buy the products, with the idea of J.Co is not an

Indonesian brand they will be consider that J.Co may not be a khoser

products, this problem can also be one of the preference of buying the

products. Company can also put the “halal” label on the products to make

customers easier to identify the khoser of the products.

Mostly of restaurant and food place are putting the price exclude the

tax and service charge. For such restaurant like a J.Co where people are

queuing in the line and order their product directly in the cashier lane it will

be hard for them to calculate how much is the nett price of the products. This

can be an idea for the J.Co to include the price with tax and services.

Furthermore, the J.Co has less variety in the menus, which most of their

products are in a set of package e.g. one dozen, half dozen etc. Which will be

easier if the price in displays are already include with the tax and service

charge. Also, this probably can faster people to queue in the line.

Even though the Store Environment variable is already in a good rate,

the statement “the placement of the outlets” is still enough rates. This

probably because most of the J.Co outlets are located inside the malls or rest

area, which will be harder for the customers that want to just buy the products,

76

they should come inside the store. J.Co also can consider placing their outlets

in stand-alone store for them to buy only the products without coming inside

malls.

Promotion variable already significant impact to the Brand Loyalty,

this can be a good point for the company. Although they still have to maintain

this particular variable to manage their customer’s loyalty.

Last variable is the Service Quality, this particular variable is already

in a good rate but the item “telephone service” is rated as poor. This probably

caused by the service of the workers in-charge for telephone service/delivery

have a low knowledge on how to service the customer by the phone.

Company can provide training for those who work in this particular position

on how they greet, they manage to answer the call and response to particular

questions in a certain amount of time. So this can be more effective for the

company.

2. For the other researcher

This study can be a base for the next research in terms of certain

variable such as Brand Name, Product Quality, Price, Store Environment,

Promotion and Service Quality. Also, the next research can focus on the

improvement of existing deficiencies and factors that are not mentioned in

this particular study, such as Customer satisfaction, Brand Image, Brand

Trust, Place or the Location of the store and etc.

Based on the result of adjusted R2 in this research, there is a big

opportunity for future researcher to reach higher value of determinant, which

represents the contribution of Brand Name, Product Quality, Price, Store

Environment, Promotion and Service Quality on Brand loyalty or if future

research want to use this variable to research in another service field.

77

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82

APPENDIX 1

A. Identitas Responden

Untuk keperluan keabsahan data penelitian ini, saya mengharapkan kepada

bapak/Ibu/Sdra/Sdri untuk mengisi data-data berikut ini:

Nama :…………………………............

Jenis kelamin :( ) Pria ( ) Wanita

Jenjang Pendidikan :( ) SMA ( ) D3 ( ) S1 ( ) S2 ( ) Lain-lain

Pekerjaan Anda :( )Pegawai Negeri

83

( )Pegawai Swasta

( )Profesi: Dokter, Pengacara, dll

( )Wiraswasta

( )Lain-lain

B. Petunjuk Pengisian

Peryataan-pernyataan di bawah ini bertujuan untuk mengetahui pendapat anda

tentang The Impact Of Brand Loyalty Variable Toward The Brand Loyalty Of JCO

Donutor And Coffee In Indonesia. Bapak/Ibu dimohonkan hanya memberikan satu

pilihan jawaban yang diungkapkan paling sesuai dengan memberikan tanda silang

(x) di kolom sebelah kanan. Pada setiap pertanyaan telah disediakan bagian lima

poin skala di sampingnya dengan keterangan sebagai berikut:

1. Sangat Setuju(SS)

2. Setuju(S)

3. Ragu-Ragu dengan Setuju (RDS)

4. Ragu-Ragu dengan tidak Setuju (RDTS)

5. Tidak Setuju (TS)

6. Sangat Tidak Setuju (STS)

1. NAMA MERK

Atribut penelitian :

SS : Sangat Setuju S : Setuju

RDS : Ragu-Ragu dengan Setuju RDTS : Ragu-Ragu dengan

tidak Setuju TS : Tidak Setuju

STS : Sangat Tidak Setuju

NO PERNYATAAN SS S RDS RDTS TS STS

84

1 Logonya has,simple dan jelas sehingga mudah

2 sudah memasyarakat di masyarakat perkotaan

3 Rasanya mantap dan enak berbeda dengan produk

sejenis

4 Kemasannya sederhana dan mempunyai daya tarik

5 Sudah Punya hak paten

2. KUALITAS PRODUK/ TASTE







1 Banyak yang suka dan mengandung Vitamin yang

diperlukan oleh tubuh

2 Proses pembuatannya yang seteril dan terjamin

dengan bahan yang berkualitasdan ada sertifikat

halal

3 Rasanya mantap dan enak berbeda dengan produk

sejenis

4 Mau mengeluarkan biaya lebihjika rasanya enak

5 Mempunyai berbagai macam rasa

85

3. HARGA




tidak Setuju TS : Tidak Setuju STS : Sangat Tidak

Setuju


1 Harga yang ditawarkan sesuai dengan kemampuan

pelanggan

2 Harga tiap Jenis produk bervariasi

3 Harga cukup bersaing dengan produk sejenis

4 Harga Produk termasuk Pajak dan Servis

5 Harga yang ditawarkan sesuai dengan kualitas produk

4. LINGKUNGAN GERAI ATAU RESTORAN




tidak Setuju TS : Tidak Setuju STS : Sangat Tidak

Setuju


1 Gerai yang tersedia berada di tempat strategis

2 Tata letak Gerai cukup menarik bagi pembeli

3 Desain Interior di dalam Outlet cukup menarik

86

4 Penenpatan Outlet cukup serasi sehingga produk yang

ditawarkan terlihat

5 Memudahkan pembeli untuk membeli produk

5. PROMOSI







1 Promosi yang dilakukan Gerai menarik perhatian

2 Promosi yang dilakukan perusahaan secara selektif

3 Media Promosi yang dipergunakan

4 Media Promosi yang dilakukan cukup bnyak

5 Sarana Promosi dilakukan selektif melalui let live serta

kemasan Produk

6. KUALITAS LAYANAN





87



1 Fasilitas fisik pelayanan mempunyai tampilan yang

Menarik

2 Penampilan pelayanan cukup menyakinkan dan

menyenangkan

3 Komunikasi Pelanggan dan pelayan mudah dipahami

4 Pelayanan dapat diakses melalui Telp. untuk delivery

order

5 Waktu tunggu pelayanan tidak lama

7. BRAND LOYALTY







1 Jika saya ingin membeli produk J-Comaka produk J-Co akan

saya beli kembali karena saya telah merasakan kualitas J-Co

itu sendiri

2 Saya akan merekomendasikan produk J-Co pada orang lain

karena saya telah merasakan kenyamanan yang diberikan

oleh produk J-Co

3 Saya bersedia membayar lebih tinggi untuk produk J-Co

karena produk J-Co sudah terbukti kualitas, rasa dan lain-lain

dan juga memiliki harga jual bersaing dengan produk sejenis

88

4 Bila suatu saat saya tidak puas atas pelayanan J-Co, saya

akan menyampaikannya pada pihak J-Co

5 Saya tertarik menambah jumlah produk J-Co yang lain

APPENDIX 2

Profile of Respondents

Characteristic of Responden Number %

Sex gender

- Male 171 52,29

- Female 156 47,71


89

Level of Education

- < S-1 101 30,89

- S-1 128 39,14

- S-2 98 29,97


Profession

- Officer 148 45,26

- Collage student 106 32,41

- Etc 73 22,33


Score per statement item about Brand Name

No Statement

real

Score

Expectation

score % Category

1 The simple logo and easily

understood 1456 1635 89,05 Very Good

2 Goodknown in urban people 1040 1635 63,61 Good

3 The delicious taste and

different with another 1228 1635 75,11 Good

4 The simple packaging and

interesting 1150 1635 70,34 Good

5 Have patents 838 1635 51,25 Enough

Total numbers 5712 8175 69,87 Good

90

Score per statement item about Product Quality

No Statement

Real

Score

Expectation

score

% Category

1

Many people like it and

contain anuseful vitamin for

body.

1195 1635 73,09 Good

2

The manufacturing process is

steril and secured with

quality ingredients and have

“halal” certificate.

756 1635 46,24 Enough

3

The delicious taste and

different with another

product

1055 1635 64,52 Good

4 Willing to pay more for

delicious taste 929 1635 56,82 Enough

5 Have various taste 1264 1635 77,31 Good


Score per statement item about Price

No Statement

Real

Score

Expectation

score % Category

1

The offered price is

accordance with the

customer ability

1357 1635 83,00 Very Good

2 The cost of each type of

product varies 1465 1635 89,60 Very Good

3 The price is competitive

with similar product 1287 1635 78,71 Good

4 The product price include

taxes and services 715 1635 43,73 Enough

5 The price is suitable with the 1224 1635 74,86 Good

91

quality of the product


Score per statement item about Store Environment

No Statement

Real

Score

Expectation

score % Category

1 The available outlet is on

strategic location. 1337 1635 81,77 Very Good

2 Booth layout is quite

attractive to buyers 1344 1635 82,20 Very Good

3 The outlet interior design is

quite interesting 1228 1635 75,11 Good

4

Placement Outlet is

harmonious and show

available product

556 1635 34,01 Enough

5 Make easier for buyers to

buy products 786 1635 48,07 Enough


Score per statement item about Promotion

No Statement

Rreal

Score

Expectation

score % Category

1 The promotion get many

attention 1204 1635 73,64 Good

2 Promotion of the company is

selective 1335 1635 81,65 Very Good

3 The promotion media used 1271 1635 77,74 Good

4 The huge number of used

promotion media 1101 1635 67,34 Good

5

The promotion is selectively

by let live and product

packages

1238 1635 75,72 Good

6 Total number 6149 8175 75,22 Good

92

Score per statement item about Service Quality

No Statement

Rreal Score

Expectation

score % Category

1 The physical facility of

services is attractive 1264 1635 77,31 Good

2 The services is convincing

and enjoyable 1279 1635 78,23 Good

3 The tool used for service is a

quite modern. 819 1635 50,09 Enough

4

The customer

communication and store is

easily understood

699 1635 42,75 Enough

5

The services can be

accessed by phone for

delivery order

504 1635 30,82 Poor

Total number 4565 8175 55,84 Enough

Score per statement item about Brand Loyalty

No Statement

Real

Score

Expectation

score % Category

1

If I want to buy a J-Co product, I will

buy it again because I have known the

J-Co product quality

704 1635 43,06 Enough

2

I would recommend J-Co product to

others because I have felt the comfort

afforded by the J-Co product

1003 1635 61,34 Good

3

I am willing to pay more for the J-co

because had proven of quality, price,

etc and have competitive price with

similar product

1166 1635 71,31 Good

4 If one day I am not satisfied with the

service J-Co, I will tell to J-Co outlet 1070 1635 65,44 Good

5 I'm interested in increasing the number

of another J-Co products 1015 1635 62,08 Good

93


F test - Anova

ANOVAb

Model Sum of Squares df Mean Square F Sig.

1 Regression 4095.350 4 1023.838 96.501 .000a

Residual 3416.307 322 10.610

Total 7511.657 326

a. Predictors: (Constant), Service Quality, Brand Name, Promotion, Product Quality


The Model of Regression Equation

The Model of Summary

Model

Unstandardized Coefficients

Standardized

Coefficients

t Sig. B Std. Error Beta

1 (Constant) -1.380 1.026 -1.345 .180

Brand Name .135 .052 .112 2.619 .009

Product Quality .276 .061 .231 4.551 .000

Promotion .211 .057 .183 3.703 .000

Service Quality .560 .061 .408 9.177 .000

a. Dependent Variable: Brand Loyaliti

94

Histogram

Normal P-P Plot of

Regression Standardized Residual

Model Summaryb

Model R R Square Adjusted R Square

Std. Error of the

Estimate

1 .738a .545 .540 3.257

a. Predictors: (Constant), Service Quality, Brand Name, Promotion, Product

Quality


95

Multicollinearity

Independent

Variable

Collinearity Statistic Decision

Tolerance VIF

Brand Name

(X1)

0.769 1.301 There is no

multicollinearity

problems

Product Quality

(X2)

0.547 1.830 There is no

multicollinearity

problems

Promotion (X5) 0.581 1.723 There is no

multicollinearity

problems

Service Quality

(X6)

0.715 1.398 There is no

multicollinearity

problems

96

Scatterplot

the influence of brand name, product quality, price, store

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