i
THE INFLUENCE OF PERCEIVED VALUE, BRAND
REPUTATION TO CUSTOMER COMMITMENT THROUGH
CONSUMER TRUST ON ONLINE SHOPPING AT
WWW.TOKOBAGUS.COM
(Study Case : Consumer of Tokobagus.com in Bintaro, Ciputat, and BSD )
THESIS
Submitted to Faculty of Economics and Business in Partial Requrements for Acquiring the Bachelor Degree of Economics
By:
FITRI AYASOFIA
109081100014
DEPARTMENT OF MANAGEMENT
INTERNATIONAL CLASS PROGRAM
FACULTY OF ECONOMICS AND BUSINESS
SYARIF HIDAYATULLAH STATE ISLAMIC UNIVERSITY
JAKARTA
ii
SHEET STATEMENT
AUTHENTICITY SCIENTIFIC WORKS
Signature Below :
Name : Fitri Ayasofia
vi
Curriculum Vitae ( CV )
A. Personal Data
Full Name : Fitri Ayasofia
Nickname : Aya
Gender : Perempuan
Place and DOB : Jakarta, 6 april 1991
Address : Perumahan Karya Indah Village II Blok BB/10 – 11 Pondok aren, Tangerang Selatan 15222
Nationality : Indonesia
Religion : Islam
Height/Weight : 160 cm / 65 kg
Health : Very Good
Telepon& HP : (021)7311706 / 081218951859
E-mail : aiyasofia@ymail.com
B. Family Data
1. Father : Dr. Hasyim, SE, M.Ed
Place and DOB : Makassar, December 12 1960 Occupation : Lecture
Last Education : S3
2. Mother : Sumarni Sulaeman
Place and DOB : Makasar, June 28 19960 Occupation : Civil Servant
Last Education : D3
3. Sister : Yusrini Anugrah Pratiwi Place and DOB : Jakarta, June 17 1994 Occupation : Student
vii C. EDUCATION
Formal
1995 – 1997 : TK 0 kecil & 0 besar TK Annisaa. Jombang, Pondok Aren, Tangerang
1997 – 2003 : SD Negeri Pesanggrahan 03 pagi. Kodam, Bintaro, Jakarta Selatan
2003 - 2006 : SMP Negeri 161. Kebayoran Lama, Jakarta Selatan
2006 – 2009 : SMA TERPADU Krida Nusantara, Bandung
2009 – 2013 : Program Sarjana (S-1) Management (International class) UIN Syarif Hidayatullah, Jakarta
Non Formal
viii ABSTRACT
This research aim to analyze the influence of perceived value and brand reputation to consumer commitment through consumer trust of online shopping in www.Tokobagus.com in region Ciputat, Bintaro and BSD. Convenience sampling method has been selected to obtain data required at this study. The research utilize 60 respondents and overall of respondents are in Ciputat, Bintaro and BSD who are use the services of online shopping in www.Tokobagus.com. Analytical method used is path analysis. The result of this research show that : The consumer perceived value and brand reputation have significant influence simultaneously and partially in consumer trust on first structural equation. The second structure equation shows that : the consumer perceived value and consumer trust have significant influence simultaneously on consumer commitment. The brand reputation have no significant influence partially on consumer commitment, but the variable perceived value and consumer trust have significant influence partially on consumer commitment.
ix ABSTRAK
Tujuan utama dari penelitian ini adalah untuk menganalisa pengaruh nilai persepsi, reputasi merek terhadap komitmen konsumen melalui kepercayaan konsumen pada belanja online di www.tokobagus.com untuk region Ciputat, Bintaro dan BSD. Pengumpulan sampling menggunakan metode convenience sampling digunakan untuk mengumpulkan data penelitian ini. Penelitian ini menggunakan 60 responden dan keseluruhan responden berada di Ciputat, Bintaro dan BSD yang menggunakan jasa belanja online di www.tokobagus.com. Metode penelitian ini menggunakan analisa jalur. Hasil dari penelitian ini menunjukkan : persepsi nilai dan reputasi merek memiliki pengaruh yang signifikan terhadap kepercayaan konsumen secara simultan dan parsial pada struktur satu. Struktur dua hasil penelitian menunjukkan bahwa : nilai persepsi dan kepercayaan pelanggan memiliki pengaruh yang signifikan terhadap komitmen konsumen secara simultan. Reputasi merek tidak memiliki pengaruh yang simultan terhadap komitmen konsumen secara parsial, namun nilai persepsi dan kepercayaan konsumen memiliki pengaruh secara parsial terhadap komitmen konsumen.
x
PREFACE
Bismillahhirrahmannirrahim,
AssalammualaikumWr. Wb
Alhamdulillahhirabbilalamin, All praise and thanks to God almighty Allah SWT for all His the favor and guidance, which always give directions, strength and spiritual, as well as healthy, so I can complete this thesis to obtain a degree in Economics and business UIN Syarif Hidayatullah Jakarta.
In the process of the preparation of this thesis, the author very aware of all the weakness that the author had, but with the permission of Almighty God Allah SWT, hard work, prayers, and a strong desire to complete this thesis and of course the never-ending support provided by family, friends, boyfriend, counselors and teachers, this thesis may be completed eventually. The amount of gratitude I say unto:
1. My parents, my father Dr.Hasyim, SE, M.Ed and my mother Sumarni who give their best, all the effort they gave with my goal to be a better person, more success for the future and a happy. Papa Hasyim who was always patient and always ready to take the time to help and teach me from start to finishing this thesis.
2. Mr. Prof. Dr. Abdul Hamid, MS as Dean of Economic and Business Faculty state Islamic university Syarif Hidayatullah Jakarta
3. Mr Dr. Yahya Hamja., MM as my supervisor I, thank you for all advices and the ease that you gave to me during guiding to finishing my thesis. 4. Mrs Cut Erika as my supervisor II, thank you for all advices that you gave
to me during guiding my thesis.
xi 6. all the lecturers and employees of the Faculty of Economics and business of UIN Syarif Hidayatullah over all the outpouring of science and service that has been given.
7. to my sister dear, Yusrini Anugrah Pratiwi who always give support and affection for your beloved sister, so I encouraged to promptly complete the thesis and I hope I pass as a Bachelor of economics can spur the sister to immediately complete Lecture course with value and better results and can boast of both parents.
8. For one of the special person in my life, Hary Trisetyo a very patient and never bored to accompany, support when I‟ve got lazy, when I'm down, and a person who are always present in any circumstance and when I really need the spirit.
9. For friends of compatriots in lectures to prepare and complete the thesis, Rara Anggun Tias, Vera Suciyati, and the Somalian, Luqman Omar. May our friendship persists for long and see you at the height of the success guys!
10.For friends in management international force 2009, both had graduated in advance, my compatriots in completing the thesis, as well as a friend In Shaa Allah soon following the completed thesis. Thank you for togetherness during the lecture.
11.For all siblings, relatives, uncle and aunty, which always give support the spirit of regeneration also morale.
12.As well as the other parties which are helps, I cannot mention one by one I apologies and I say thanks to the fullest it.
xii WassalammualaikumWr.Wb
Jakarta, 6 September 2013 Author
xiii
LIST OF CONTENT
COVER
IN COVER ... i
Statement of Authenticity Sheet Papers ... ii
Curriculum Vitae ... vi
Abstract ... viii
Abstrak ... ix
Preface ... x
List of Content ... xiii
List of Table ... xvi
List of Picture ... xix
List of Attachment... xx
CHAPTER I INTRODUCTION ... 1
A. Research Background... 7
B. Problem Formulation ... 8
C. Research Purpose ... 9
D. Benefit of Research ... 9
CHAPTER II LITERATUR REVIEW ... 10
A. Variable Definition ... 10
1. Definition of Brand ... 10
2. Consumer Behavior ... 12
3. Internet, E-commerce, and online shopping ... 14
4. Definition of Brand Reputation ... 16
5. Definition of Consumer Perceive Value ... 20
6. Definition of Consumer Trust ... 24
xiv
B. Previous Research ... 34
1. Brand Reputation with the Consumer‟s Trust ... 34
2. Customer (Perceived) Value with the Consumer‟s Trust ... 35
3. Customer (Perceived) Value with the Customer Commitment... 36
4. Brand Reputation with the Customer‟s Commitment ... 37
5. Consumer‟s trust with the Customer‟s Commitment ... 37
C. Conceptual Framework ... 38
D. Hypothesis ... 43
E. Hypothesis Statistically ... 45
CHAPTER III RESEARCH METHODOLOGY ... 48
A. Scope of The Research ... 48
B. Population and Sample ... 49
1. Population ... 49
2. Sample ... 50
C. Data Resource and Data Collecting Method ... 50
1. Primary Data ... 50
2. Secondary Data ... 51
D. Analysis Method ... 51
1. Validity and Reliability Test ... 51
a. Validity Test ... 51
b. Reliability Test ... 52
2. Path Analysis ... 52
E. Operational Variables ... 55
CHAPTER IV ANALYSIS AND DISCUSSION ... 71
A. General Description of Research Object... 71
1. What is Tokobagus.com ... 71
2. Short history ... 71
B. Analysis and Discussion ... 73
1. Validity Test ... 73
2. Reliability Test ... 76
C. Finding Research ... 77
1. Characteristics and Data of Respondent ... 77
2. Descriptive Analysis ... 79
xv
b. Brand reputation ... 87
c. Consumer trust ... 92
d. Customer Commitment ... 97
D. Analysis 1. Path Analysis ... 103
2. F Test (Simultate Test) ... 110
3. T Test (Parsial Test) ... 113
CHAPTER V CONCLUSION AND IMPLICATION ... 129
A. Conclusion ... 129
B. Implication ... 131
1. For a Company ... 134
2. For Academicians... 136
REFERENCE ... 137
xvi LIST OF TABLE
3.1 Likert Scale Table ... 60
3.2 Operational Variable ... 69
4.1 Table of Validity Test ... 74
4.2 Reliability Statistic ... 76
4.3 Profile Respondents Base on Gender ... 77
4.4 Profile Respondents Based on Professions ... 78
4.5 Frequency of Respondents Answer About Customer Total Value ... 79
4.6 Frequency of Respondents Answer About Customer Total Value ... 79
4.7 Frequency of Respondents Answer About Customer Total Value ... 80
4.8 Frequency of Respondents Answer About Customer total value ... 80
4.9 Frequency of Respondents Answer About Customer overall judgement ... 81
4.10 Frequency of Respondents Answer About Customer overall judgement ... 81
4.11 Frequency of Respondents Answer About Monetary Value... 82
4.12Frequency of Respondents Answer About Monetary Value... 82
4.13 Frequency of Respondents Answer About Trade-off between benefit & cost ... 83
4.14 Frequency of Respondents Answer About Trade off between benefit & cost ... 84
4.15 Frequency of Respondents Answer About Service Quality ... 84
4.16 Frequency of Respondents Answer About Service Quality ... 85
4.17 Frequency of Respondents Answer About Professionalism ... 85
4.18 Frequency of Respondents Answer About Professionalism ... 86
4.19 Frequency of Respondents Answer About Price fairness ... 86
4.20 Frequency of Respondents Answer About Price fairness ... 87
xvii
4.22 Frequency of Respondents Answer About Company performance ... 88
4.23 Frequency of Respondents Answer About Rating in a community ... 89
4.24 Frequency of Respondents Answer About Rating in a community ... 89
4.25 Frequency of Respondents Answer About truth worthiness based on referrals ... 90
4.26 Frequency of Respondents Answer About trusth wortiness based on referrals ... 90
4.27 Frequency of Respondents Answer About forard loking benefit... 91
4.28 Frequency of Respondents Answer Aboutforward loking benefit ... 91
4.29 Frequency of Respondents Answer About exchange integrity ... 92
4.30 Frequency of Respondents Answer About exchange integrity ... 93
4.31 Frequency of Respondents Answer About Degree of confidence ... 93
4.32 Frequency of Respondents Answer About degree of confidence ... 94
4.33 Frequency of Respondents Answer About goodwill and wilingness... 94
4.34 Frequency of Respondents Answer About goodwill and wiligness... 95
4.35 Frequency of Respondents Answer About feeling about satisfaction ... 95
4.36 Frequency of Respondents Answer About feeling about satisfaction ... 96
4.37 Frequency of Respondents Answer About feeling about certainty ... 96
4.38 Frequency of Respondents Answer About feeling about certainty ... 97
4.39 Frequency of Respondents Answer About customer retantion ... 97
4.40 Frequency of Respondents Answer About customer retantion ... 98
4.41 Frequency of Respondents Answer About repurchase intention ... 98
4.42 Frequency of Respondents Answer About repurchase intention ... 98
4.43 Frequency of Respondents Answer About staying intention ... 99
4.44 Frequency of Respondents Answer About staying intention ... 99
4.45 Frequency of Respondents Answer About enduring attitude ... 100
xviii
4.47 Frequency of Respondents Answer About desire to particular brand... 101
4.48 Frequency of Respondents Answer About desire to particular brand... 101
4.49 Frequency of Respondents Answer About desire to maintain membership ... 102
4.50 Frequency of Respondents Answer About desire to maintain membership ... 102
4.51 result calculation of correlation test ... 104
4.52 relationship between each variable ... 106
4.53 coefficeint determinant structure I ... 108
4.54 coefficeint determination structure II ... 109
4.55 F Test structure I ... 110
4.56 F Test Structure II ... 112
4.57 T Test structure II ... 113
4.58 Analysis influence PV and BR to CT ... 116
4.59 T Test for structure II ... 117
4.60 Analysis influence PV,BR,CT to CC ... 122
4.61 T Test after trimming ... 122
4.62 Analysis influence PV,CT to CC ... 123
4.63 Coefficient Determinant aftertrimming ... 123
4.64 Total effect of CPV, and BR ... 125
xix LIST OF PICTURE
2.1 Resarch model based on each variable definition ... 40
2.2 Research model based on previous researcher ... 41
2.3 Framework ... 42
4.1 Correlation value in the model ... 107
xx LIST OF ATTACHMENT
Attachment 1 Research Questionnair ... 141
Attachment 2 Raw data of validity and reliability test ... 147
Attachment 3 Raw data of path anaysis ... 149
Attachment 4 Frequency distribuion of the assesment respondents ... 150
Attachment 5 Result of validity and reliability test ... 153
1 CHAPTER I
INTRODUCTION
A. Research Background
Since 90s the development pattern of marketing in Indonesia experienced
significant changes, especially in the big city. The original marketing pattern is
characterized by a pattern of conventional face-to-face interaction and directly
between buyer and seller, accompanied by bargaining activities, gradually turns
into a pattern of self-service marketing. This period was marked by the emergence
of the market – a grocery store and supermarket, on this pattern, the intensity of
the interaction between buyers and seller diminishing compared to conventional
patterns, price and quantity of goods on a permanent basis and not significantly
possible the existence of bargaining between the buyer and the seller.
In early 2000s, increasingly develop of marketing pattern, after the
emergence of patterns of utilizing electronic media marketing in the execution of
transactions, such as online shopping. Typical of the pattern of marketing this is
no physical meetings directly between the seller and the buyer, as well as the
pattern of provision of products, all made through electronics, both between
companies with the company, company with distributors, as well as the company
with the consumer. The role of the service delivery, technology communications
play an important role. Marketing pattern looks complicated but it has advantages
2 Schijns (2003) describe that “online environments it is more complicated
to establish a social connection between firms and customers due to the lack of physical environment, social distance between companies and customers”
Another way of marketing as well as excess pattern described by Burke et
al (2000) on cang and wang (2009 : 333), “online exhibits different characteristics
from traditional shopping, online shopping can offer greater product selection,
accessibility without restriction of time and space”.
Nevertheless, the pattern of marketing also has disadvantages such as
being delivered by Srinivasanet (2002) that : consumer can compare competing
products and services with minimal expenditure of personal time or effort, which
results in competitive business markets and lower brand loyalty.
This is possible because consumers can easily switch to other product
options in a very short time without having to deal with the seller.
Husin (2011) revealed that online shopping has actually been introduced
since 1979 in the United Kingdom, by Michael Aldrich of Redifon computers,
long before there was the internet. Aldrich attributed the color TV with computer
and telephone so that it can conduct transactions via a telephone sale, in
accordance with item displayed on the TV screen, but with the internet then
communication with the telephone starting replaceable.
Online shopping itself as a form of communication that did not require
face-to-face between buyers and sellers, so buyers and sellers can reside in a place
3 desired product through the company website accessed through seller social media
or blogs.
In Indonesia, reports of buying and selling online its increasing trend.
Source of information from the CEO of PT Indonesia Payment Solution said that,
total financial online transactions in 2010 and USD recorded 3.4 billion and year
2012 total financial online transactions are estimated reached USD 4.1 billion.
This number will continue to increase along with the use of internet in Indonesia
still continuing.
As the largest category on types of products in online transactions is
gadgets and stuff, such as electronics, tablet PCs, smartphones, and computer
spare parts. In second category are hobby goods or collectors, such as sports tools,
games, and accessories as well as medicines and cosmetics.
On the pattern of this kind of marketing the trust level of the product,
and manufacturers, it played an important role, in other words the "Trust" is
crucial in marketing like this. Hasan Afzal (2010) said that “Consumer trust is a variable that generates consumers‟ commitment.” Particularly, high involvement situation in which effect is strong in assessment as a whole contentment.
Change of marketing patterns is currently developing in the direction of
deeper relations between the growing companies with buyers through its products.
Rust et al. (2009: 2) describe that “yet never before have companies had such
powerful technologies for interacting directly with customers, collecting and
4 Currently, internet users are increasing rapidly, not only in the world, but
also in Indonesia. The population of Indonesia in 2012 was 248 million
inhabitants, of whom 110 million is estimated as middle-class class of internet
users in Indonesia. In addition, there are a total of 23% of internet users or as
many as 50 million people. As a percentage of this amount least come within
South-East Asia, where the highest Singapore, 67% of the total population.
Despite having the lowest number of percentage as internet users in
Southeast Asia, but Indonesia is considered a potential market of internet users,
given the growth in GDP which reached 6.4% from 2011 to 2012, and credit card
users who have reached the 30% of the total population in 2012. In addition to
Indonesia's seventh-largest facebook users, Indonesia as 4th larger users in the
world with $ 43 million, and also the 3rd twitter user in the world with a total of
11 active twitter user, 5 million inhabitants.
From 55 million internet users in indonesia, 71% of the internet user
browsing internet via laptops or desktops, 24% through smartphones and the rest
use other media. In addition to use PC, most Indonesian people access the internet
home, which amounted to 63%, and the remaining 25% from office facilities,
where the rest are using the internet at cafe, cybercafe or school. The results of the
survey found, that Indonesian spends for more than 30 minutes per week for
online. By which time, Indonesia spending time for online is above average time
on line than Malaysia and the Philippines but far under the average of the citizens
of Singapore and Vietnam. On line time, mostly used for searching via the search
5 utilize of internet is to search activity news, download music and games, on line
transactions, education and careers, traveling, and only a few are utilizing the
internet for blogs and games on line.
Based on survey results from AC Nielsen (2008) has more than 635
million people in the world ever make deals shopping online. The growth of
shopping on line in whole over the world has increased 50% since the year 2001
to the 2008. In Indonesia, growth of transaction on line also increased 50% from
year 2009 to 2010 (AC Nielsen Indonesia, 2010). Based on the data, 40% of
internet users utilize the internet for online transactions, where 37% of them
shopping for fashion goods, followed by booking on line for travel (including
hotels and planes) followed by electronic items and books. Most of the shoppers
on line, shopping via facebook and kaskus, while the rest are shopping through
websites that offer goods for online like a nice store, amazon, e-bay, souvenirs,
and pediabhineka, tokobagus, kaskus, etc.
Many payment methods are chosen by consumers in Indonesia by Bank
transfer, followed by credit card and the rest option for Cash on Delivery. Where
the average consumer spent Rp.500,000 for once shopping online.
Handy Irawan in Marketing Magazine March 2012 issued, reveal a
phenomenon in shopping online that consumers in Indonesia have uniqueness
attitude, behavior and decision in making process in evaluating and purchasing
products. For example, in the field of culture, Indonesia has their own culture of
people who are clearly much different compared to American culture. Indonesia
6 the meaning of Indonesia Society of different colors, like green color more
favorite. Our market has many products that are intended focus to the Muslims.
The influence of the other is unique in terms of the "reference group". This is the
part that really can't be compared to the American public. In this context, the
opinion as a great leader influencer and the most important is Indonesian society
as a group that has a strong level of socializing.
The impact of this powerful community level is great for marketing
strategy, especially in the context of market penetration. One strategy that
important is the communication strategy. The communication process that uses
word of mouth and raises the level of trust to be effective that assist the market
penetration of a brand.
Indrawan (2012) supported research results of Husni (2011) added, the
various external factors above also affects the internal factors such as the process
of the formation of perception, memory, motivation, attitude, lifestyle and
behavioral processes eventually purchase. As an example, consumers of Indonesia
are likely has short-term memory more dominant. This is a combination between
educational level and social class average is still low, the culture and norms, as
well as the influence of the existing systems in the community. It gives very big
implications on strategy positioning of a product. Almost the same as the first
character, then Indonesia's consumer also tend to not only have a plan, it makes
the consumer spending patterns of Indonesia is relatively disorganized, the
7 With such unique characteristics, then this research was conducted to find
out whether media users on line shopping is committed both to the products or
services and to the providers of goods or commitment, as well as to find out what
factors are associated with the level of consumer confidence on shopping on line.
In addition to the explanation that has been put forward on the basis of
consideration of why this research needs to be done, in order to understand the
factors that affect consumer behavior is what the marketing patterns on line.
Some of the variables is assumed as interrelated variables for causality is a
brand reputation, which is the starting point for the introduction of consumer
product offerings, then consumers will be doing an assessment of the advantages
(benefits) earned and costs incurred, this variable was called with perceived value.
Both of these variables on the variables that affect a assume the level of
commitment or loyalty of consumers against a product, where the causality
between the independent variable i.e. reputation and perceived value to the
consumer is influenced by how big a commitment low levels consumer
confidence (consumer trust) of the products on offer. This research will enrich the
efforts implies the dimensions of marketing that can be used as the object of an
improvement in marketing on line.
B. Problem Formulation
Based on the identification of problems and restrictions as already
8
1. Are there any significant effects between the Perceived Value of
consumer Trust in shopping online?
2. Are there any significant effects between the Brand Reputation of
Consumer Trust in online shopping?
3. Are there any significant effects directly or indirectly between the
Perceived Value to the Customer Commitment in shopping online?
4. Are there any significant effects directly or indirectly between the
Brand Reputation of the Customer Commitment in shopping online?
5. Are there any significant effects between Consumer Trust of the
customer's Commitment in shopping online?
C. Research Purposes
The goal ofthis research in particular is to find out:
1. To analyze the influence and role of Perceived Value to the Consumer
Trust in online shopping
2. To analyze the influence and role of Brand Reputation of Consumer
Trust in online shopping
3. To analyze the effect of directly or indirectly between the Perceived
Value of Customer of Commitment in shopping online
4. To analyze the influence of directly and indirectly between Brand
Reputation of Customer Commitment in shopping online
5. To analyze the influence and role of Consumer Trust of the customer's
9 D. Benefit of Research
This research is expected to be useful in the developing aspects of science
as well as to government aspects.
The Development Of Scienceaspects:
1. The development of the theory of Brand and customer behavior
theory with applications online marketing
2. Application of the theory of perceived value on the conditions in
Indonesia
3. The results of this research are expected to be useful for the
development of the science of consumer behavior, especially
linkages with variable reputation Brand, Brand trust and Brand
Commitment.
The Development of governance aspects:
1. Being one of the producers as reference for designing an effective
strategy for the development of online shopping is very potential in
Indonesia.
2. Being a reference for marketing materials to create trust and a
10 CHAPTER II
LITERATUR RIVEW
A. Variable Definition 1. Definition of Brand
Aaker and Keller (1990:112) in Afzal (2011:43), defines a brand as
a ' name, logo, trademark and symbol '. Added by Argenti and
Drunkenmiller (2004:75) in Pinson (2012: 5) brand is a name, term, sign,
symbol or design, or a combination of them intended to identify the goods
and services of one seller or groups of sellers and to differentiate them from those of the competition.”
Attested in Afzal (2011:44) that, brand will creating a difference
between generic products also expressed by Einwiller (2001).
Furthermore, disclosed the importance of Brand in the company, by Rao
(1994) in Matzler, et. Al. (2006: 76) that brand is an intangible asset of a
company that has values. Which brand would reflect the spirit and soul of
the Organization, further brand the product can tell the difference with
competitor and can determine the position of the competitors have similar
products, so eventually customers will feel as a part of specific brand
product in Aaker(1991:102), so the arguments presented by Afzal, et. Al.
(2011:44)in expressed the importance of brand for a company.
In the background of his article, Mohammed (2012: 113) said that
11 or even the organization of a particular store. Brand give consideration
associated between producers and consumers, and describes whether a
product has fulfilled the expected by the consumer or not. Next, brand will
show whether consumers are on a specific community or not.
Consumers are aware to the importance of a brand, the higher
commitment of consumers of a brand. The famous brand will provide
profits for these products and will differentiate it from similar products of
a brand is not well known, so Mohammed quote from Keller (2003).
Where though many brand on the market, but usually consumer will prefer
for brand that they already known in advance. Furthermore, the famous
brand will become attractive not only for consumers, but also encourage
repeat purchases and will increase the price of the product, so it will give
you an advantage for the company in the medium term and Foster
Cadogan (2000: 343).
The shape of the brand is actually an assortment, 'may be a
product, service, shops, famous personality, place, organization or idea ' so
brand experts, Keller (2003b) says. More than just a brand name or logo,
but rather to ' a set of expectation and perception that rose from the
experience of the product or the organization ' Davis (2002: 503) added.
Mohammed (2012: 113) concluded that tangible or intangible components
of a brand can shape perceptions of customers over time and will shape the
attitudes of customer‟s brand, so that it will give rise to a special form of
12 studies mention that the role of the brand is not as important as with the
role of pricing, packaging, and various technical characteristics inherent in
such products as quoted from Serge (2000: 92).
Based on the sentence above, seen that brand is a very powerful
asset for a company, so a good reputation will give positive expectations
for customers and a bad reputation will give you an image that is not good
from the side (Creed and Miles, 1996, in which Afzal, 2011: 46).
2. Consumer Behavior
The purpose of a marketer is to serve and satisfy the needs and
desires of consumers. Marketers must know and understand how consumer
behavior in fulfilling your wishes and needs.
According to Engel (2010: 22) consumer behavior is direct action
to get consumption and spend the products and services, including the
decision-making process. Kottler (2012) said that consumer behavior is the
behavior of the end consumers, both individuals and household who buy
products personal consumption. Whereas previously Mowen (2006) stated
that consumer behavior is the study of unit purchases and Exchange
processes involving the acquisition, and consumption of goods and
services. Definition of consumer behavior is most often used is from
Schiffman and Kanuk (2008) where consumer behavior is a process where
a person in a seeks, give, use, evaluating, and acting after the consumption
13 Based on the description above, seen that consumer behavior
related to decision-making to use and consumer goods and services in
fulfilling needs and wants of a consumer.
Zeithaml and Bitner (2005) argues that the stages performed in
decision-making means evaluating services and products offered, by
doing: search source of information, a variety of alternative assessment
products and services, purchase and use of products and services and the
last one is the evaluation of post purchase.
With the development of e-commerce, since the end of the 1990s,
media in shopping meeting growing spending needs and desires as well as
through internet media. This is certainly have an effect on the behavior of
consumer purchases, purchase behavior with the media on line have a
difference with conventional media.
According to Li and Zhang (2002: 508) online purchase behavior
refers to the process of purchasing goods and services products through
the medium of the internet. It distinguishes with conventional shopping
process is in shopping online, information retrieval and alternative
products and services is done by looking at the information that is
available through the medium of the internet, and how to purchase
between buyer and seller is not met. The difference is the behavior of
consumers who buy on line, just do a search if the information he felt in
14 The behavior of consumers in shopping online is influenced by
various factors, in particular the recurrent desire to do shopping or even
feel any attachment with the shop on line or purchased online brands,
various studies say depending on the level of trust that such a result of
consumer research Javernpaa, Tranctinsky and Vitale (2000: 45). Where
the trust of consumers is very depending on the perceived value of online
stores or products and services purchased online consumer and reputation
earned from online stores as well as the goods and services he received, it
is expressed by Quelch and Klein (1999: 72).
3. Internet, e-commerce and Online Shopping
The history of the Internet's existence comes from the United
States Department of Defense Advanced Research Project Agency
(ARPA) in 1963, which was originally a United States Government
experiment NET created to connect the computer researcherto the centre in
the Department of Defense.
Currently, Internet is a computer network that links computer
networks with other networks worldwide (Hornby, 2000). Internet has
become the world's largest information resource that contains a wide range
of breakthrough in form of communicating, social interactions to business
interactions. A wide range of buying and selling that was once done
facto-face can now be done on line via the internet, which is called
15 E-commerce defined by Turaban (2002) is a concept that describes
the process of purchase, sales and products changing, services and
information through a computer network. E-commerce has three
categories, B2C (Business to Customer) that is a transaction on line
connected directly between the business person with customers
individually. Then the category B2B (business to business), transactions
on line between one or several companies with other businesses, and B2E
(Business to Employee), the information and the service made up for the
workers.
Husin (2011) tells us that, on line shopping was first introduced in
the United Kingdom since 1979 by Michael Aldrich of Redifon
computers, long before the internet exist. Aldrich attributed the color TV
with computers and telephones, so to transact a sale over the phone, in
accordance with item displayed on the TV screen.
Then with the uses of the internet, communication with the phone
starts replaceable by online shopping form of transactions that do not
require a face-to-face between buyers and sellers, so buyers and sellers can
be in a separate place so much, but can make deals, and the buyer can
choose the product through a vending company sites that are accessed
16 4. Definition of Brand Reputation
Halliday and Kuenzel (2010: ) in Pinson (2012: 3) outlines the
notion of reputation as: the collective representation of multiple
constituencies image of company, built up over time and based on
company's identity programs, its performance and how constituencies have
perceived its behavior. The unity of the community in view of the
assessment form and behavior towards companies, which are arrayed in a
long period of time, based on the programs and performance undertaken
by the company.
Other notions of reputation put forward by (Bromley: 1993).
Davies and Miles (1983) in Pinson (2012: 23) reputation are: Summary of
the impressions or perceptions held by external stakeholders. Whole of the
feeling and opinion submitted by stakeholders outside the company.
The reputation of a brand can be accessed from the consumer
opinions, hopes and beliefs, so a Brand's Reputation is the consumer
confidence that the brand is good and reliable. The reputation of a brand
can be built through advertising and PR and of course the quality of the
items added (Afzal, 2011: 46).
From above can be interpreted as meaning that the reputation of a
company represented by the performance of which was created by the
company which is reflected in the quality of the resulting products, as well
as other performance are perceived by consumers. This means bring the
17 grew and vice versa, the ugly performance of the company's consumer
increasingly negative perceptions which means reducing the company's
reputation in the eyes of consumers.
Brand reputation is often associated as the credibility of the
companies that are perceived by consumers (Herbig, 1993, Hyde, 2005 in
Casalo, 2011: 201). Aside from the external side, the reputation of a brand
can be seen from the internal side, where in his article, Pinson (2012: 25)
reveals ' CEOs views reputation as an intangibles assets that provide a firm
with greater confidence among stakeholders, better positioning in the
marketplace and associated with superior performance compared to other
brands in the same product category ' (deChertnatony, 1999) Ceos looked
at the reputation as an invisible treasure that give confidence to
stakeholders, a better position on the market, and can provide better
performance than other brands of the same product.
Confirmed also mention by Dahlen, et. Al. (2009: 157) that brand
reputation is an asset that will give the company an advantage, which will
create goodwill from consumers based on experience from previous
purchases. It is believed that the brand that has a good reputation will ease
the process of purchase of the customer or consumer decision making in
purchasing (Chun: 2005). In the contacts associated with the on line
shopping or e-commerce, Josang, et. Al., 2007 in Cassalo, (2011: 201)
18 truthworthiness based on referrals or rating from members in a
community.
The good reputation of the company in the eyes of consumers will
give a positive impact to the company's performance as it allegedly by
Chun (2005) a good brand reputation stimulates purchase by simplifying
decision procedures for customers, a good brand reputation that will
stimulate the purchasing easier, in other words a good reputation doesn't
complicate the assessment of consumer products that it generates, because
consumers feel confident would be quality of the product that results from
companies that have a good reputation.
Correspondingly Deephouse (2000) and Siltaoja in Ker Tah Hsu
(2011) tells us that the executives viewed the company's reputation as an
important source that directs the company to consider corporate
competitive advantage Executive reputation as the critical intangible
resources that leads to competitor advantage. The explanation above was
added by Herbig and Milewicz (1995) cited Dahlen, et. Al. (2009: 157) a
backward-looking asset with forward looking, the goodwill benefit
consumers ascribe to a brand based on their previous encounters with it.
Reputation is an invisible asset but provide a real advantage, because
consumers who either provide an assessment based on what they see and
feel.
Brand reputation will Giving an advantage for a company's
19 (competitive advantage) it means the good reputation of the company is a
sign of the high competitive advantage possessed, and this will encourage
positive assessment (perceived value) from consumers against firms.
Worcester (2001) in Riadh (2011: 120) says that the company's
image can be defined as "the net result of the interaction of all experiences,
impressions, beliefs, feelings and knowledge people have about the
company", where the image can also be described as what the public views
as a whole regarding the company.
Related to the company's image, reputation of the company by
Tsung-Chi (2007: 134) is how the customer views of service providers, the
extent to which they are honest and paying attention to the customer.
Added, that previous studies have shown that with the increasingly sharp
competition at the moment, consumers can easily switch to a company that
has a better image, though customers were satisfied with the service
providers who are currently wearing.
If the reputation associated with the other variables, so a lot of the
literature are debating on how linking between service quality, satisfaction
and image. Some says that the image is the antecedent of customer
satisfaction, to be a moderator between service quality and satisfaction, but
there are studies that indicate the opposite.
Gronross (2001), is one of the person who said that image was
created from service quality and customer satisfaction. What is relayed by
20 (2006), as well as research from Nguyen and LeBlanc (2005), on the
service industry in South Korea. Even the research of Nguyen and
LeBLanc has also been linked with the company's image among customer
loyalty, customer loyalty was created from a good corporate image.
The latest research from Kassim and Souiden (2010) indicates that
a good image of the company will develop and maintain good
relationships with customers, can even increase market share and sales.
Not only the company's image but in Tsung-Chi (2007: 135) it is said that
reputation also has connections in maintaining customer relationships with
the service provider.
5. Definition of Consumer Perceive Value
According to Kotler (2012), the value of the thought of the
customer (Customer Perceived Value) is the difference between the
evaluation of the prospects for all benefits and all the costs that are on
offer and other alternatives considered. The evaluation process involves
the exchange of what is acceptable to consumers (customer total value,
service value, image value) and what was sacrificed (customer total cost,
the monetary cost and non-monetary cost includes the cost of time, energy
and mental). Seen from the side of the consumer, have a high value is a
major factor in the transaction of buying and selling (Hollbrook: 1994).
Kottler (2010.) in Suliyanto (2010: 2) adds that the Customer
21 or services that are expected to satisfy them. Added by the Ziethmal
(1988) in Li (2010: 23) expressed approval that the Customer Perceived
Value is the overall assessment of the value to products based on the
perception that he received or upon what has been accepted by the
consumer.
A little different from what is presented by Kottler, Ducoffe (1996)
in Dahlen, et. Al. (2009: 156), said that the Perceived value of Customer
as the value of the products or services received based on consumer
advertising of such products or services.
In the end, as a result of research Li (2010: 20) which is in line
with the theory of Lemon, et. Al. (2001), that the Customer Perceived
Value holds the key role in the relationship between the purchaser and the
company, which was created from a number of factors, namely ' quality,
price and convenience '.Cronin (2000) associate the Customer Perceived
Value on on line shopping system as whole consumer assessment of the
quality and the sacrifice incurred in shopping; ' customer's overall
judgment of quality and sacrifice to shop '.
Mac Dougal and Levesque (2000) in Suliyanto (2009; 2), said that
the Perceived Customer Value will give a ' long-term benefit '. Because
customer perceived value increase consumer confidence on a particular
product, so it will encourage consumers to do the repetitive consumption
on these products, or enhancing a sense of attachment to a product or
22 Various definitions of Customer Perceived Value cited by Li
(2010; 30-33) from different sources, Anderson (1993) says that CPV is
related to the monetary units that are associated with that product.
Whereas Burtz and Goodstein (1996) says that CPV more leads to
emotional shape that is formed between customers with a certain brand,
because it considers the value of having a ' brand ' is more than other
brands in the similar products. While Moliner (2007) says that the
Perceived Value to the Customer more experience after consuming, where
subjective judgment and therein including emotional reactions after
consuming a product or service. Monroe (1990) says that the Customer
Perceived Value is a tradeoff ' from ' quality or benefit which is received
from a consumer product compared to the sacrifice of the issued price. The
theory of Customer Perceived Value is most often used in the study are
those of the Woodruff who says that Customer Perceived Value is the
overall evaluation of product attributes, attributes and performance
consequences received by the consumer after consuming the products and
benefit that gets compared to other products.
Mohammed (2012; 116) in his research related to brand loyalty,
many take the Customer Perceived Value of theory Anderson and
Srinivasan (2003), said that if the perceived value is decreased, then the
consumer will tend to not committed against the product, brand or
23 factor shaping the overall satisfaction is new on is finally will increase
loyalty and commitment from the customer.
Lack of Perceive Value, which is quoted from research by Peterson
(2004), Holbrook (1994), Petrick and Backman (2004) is in market
research, measuring the Perceived Value is not an easy thing, where the
theory of perceived value measurement itself is very less. Measurement of
perceived value, into a debate about the perceived dimensions of value still
takes place today, and requires more than just a marketing tool and
statistics but there are psychometric science in it so it was revealed from
the article and Jayanti Ghosh (1996).
It is also delivered by Dahlen (2009: 156) that raised customer
perceived value in his research, where it is perceived that express their
customer measurement value can be viewed from any side or from one
side only, for example, perceived value received from the advertising of a
product, can even be restricted from one media advertisements only.
Because of the perception of the consumer receives an advertisement, may
cause an emotional attitude of consumers to the product being advertised.
However, there has been a lot of studies that are related to
Customer Perceived Value, such as the study of the Dagger, et al (2007) in
the healthcare industry in Australia using the dimensions of service
quality, interpersonal hers added quality, technical quality, environment
quality and administrative quality. The results of the study showed a link
24 studies have been conducted by the Moliner (2007) on the tourism
industry in Spain, where the dimensions of customer perceived value used
is the functional value of service quality, price and professionalism then
the dimensions of emotional value and social value dimension. Kim
(2008) the adopting model research of Oliver (2007) conducted a study on
e-commerce perceived value, dimensions used are perceived service
quality, product quality and perceived perceived price fairness.
6. Definition of Consumer Trust
According to Morgan and Hunt (1999), the Trust is defined as the
level of integrity, honesty and competence of one party against the other
party, confidence on exchange partner's reliability and integrity.
Trust usually viewed as a critical element of being able to keep the
relationship in the future, in this case the customer relationships with
service providers. Then Morgan and Hunts (1994: 23) in Helen wong et al.
(2012) gives the sense of out Trust when one party has confidence in an
exchange partner is reliability and integrity, trust arises if someone feel
confident against the other party in terms of reliabilities and integrity.
Thus the trust arises if a person or a company able to show something
good sake that can convince someone to be his ability and integrity.
In the sense, Adidam et al (2004) have almost the same thinking. In
Helen wong (2012) explained that u.s. trust confidence conceptualized in
25 experience as an individual has his/her ad with the institution, the concept
of trust as a belief of ability and integrity shown by co-workers based on
someone's experience of the institutions or their home institution.
Next on his research, Chaudari and Holbrook (2001: 82), Morgan
and Hunt (2004) back to affirm that Trust is a desire of most consumers to
trust the ability of a particular brand to be able to deliver its performance
in accordance in what it should be or according to what he had promised.
Trusts can also be interpreted as a goodwill and willingness "from
consumers to take risks, to which goodwill is built from previous
experience, and Trust is the expectation of a positive outcome, expressed
by Deutsch (1979) in Afzal, et. Al. (2011: 45). While the willingness is the
desire of consumers to face the risks, that may be associated with receipt
of the brand that will be consumed, (lau and Lee, 1999, in the Suliyanto
2011: 2).
Emphasized by the Doney and Cannon (1992) says that consumer
Trust is very relevant to the situation which is full of uncertainty where the
larger brand differentiating in the similar products. Garbarino and Johnson
(1999, 71) says that consumer trust can arise as a belief of the honesty and
integrity of the seller, which may be reflected in the attitude of the
personnel of the seller (Crosby, et. al, 1990).
In his research, Ching-Hsien, et. Al. (2002: 2) says that will happen
because the trust's consumer's initiative themselves to further believe with
26 uncertainty, not only because consumers know that the brand deserves to
be trusted, but reliable, secure and honest in expressing the contents of
products that are sold, as quoted from Arnjun and Morris (2001). In fact
added by Doney and Cannon (1997) 's consumer's Trust can be created and
built through the consumer experience in doing such consumption
activities, starting from the process of introduction to the brand.
In the end, it's consumer's trust of research results and Garbarino
Johnson (1999: 72) can be viewed as a major component in the
relationship (relationship) between the seller and the buyer (Berry, 1995,
Dwyer, 1987, Morgan and Hunt, 1994).
However it should be noted also that's consumer's trust by
Kabadayi and Alan (2012: 82) cited from Casalo (2007) can be viewed as
a cognitive component, because it can be an encouragement to its purely
emotional. Where the emotional impetus can arise from complacency after
the previous purchases (Anderson and Narus, 1990, Afzal, 2011: 45)
Andreas Eggert (2002) distinguish perceived between value and
customer satisfaction by saying that perceived value can be measured as
the cognitive variable, while the customer satisfaction can be assessed as
variable relating to affective; perceived value is ArcGIS measured a s a
cognitive variable, customer satisfaction is ArcGIS measured as an
affective variable, whereas Zeithaml (2008:18) saying that perceived value
is consumer to the overall assessment of the usability of a product may be
27 issued to obtain the product's consumer's Perceived value as the overall
assessment of the utility of the product based on perceptions of what
received and what is given.
While Helen Wong (2012) outlines that a trustworthy party is one
that is considered reliable and has high level of integrity and the associated
qualities, belief is a considered a high reliability and integrity with regard
to quality.
Casalo et al. cited by Helen Wong (2007: 82) defines trust as
cognitive component, which may induce emotional response, including
cognition components insidereponses emotionally. As well as related to
the experience of the brand, or a product like that is to say by the Doney
and Cannon, (1997) in Helen Wong (2007: 82) that the Trust can be
Created and developed by direct experiences of consumers via the brands,
trust can be in shape by the direct experience of the customer. By doing it,
so can be said that trust is related to someone's beliefs against reliabilities
and integrity shown by a person or a product or company.
Afzal (2010) explains that Consumer trust is a variable that
generates the consumers‟ commitment. Particularly high involvement
situation In which its effect is strong in assessment as a whole
contentment; Morgan and Hunt (1994) cited by Chaudhuri and Holbrook
(2001: 82) gives the sense of trust as the willingness of the average
28 the desire for the average consumer to the ability shown by the brand or
company.
Doney& Cannon, (1992), Ching-Hsien, et al (2002) in Chaudhuri
and Holbrook (2001: 81) says that trust also relevant situation in
uncertainty economic situation, when greater brands versus lesser
differences among brands occur. The Trust also has to do with the
situation of uncertainty, when well-known brands are dealing with other
brands.
Benefit from the emergence of consumer confidence are reducing
uncertainty, so that consumers can reduce spending and reduce the time to
a sense of uncertainty as it is pointed out by (Arjun and Morris, 2001) in
Kabadayi and Alan (2012: 2) The Trust can reduce economic uncertainty,
because the customer not only knows that brand can be worth trusting, but
also thing that dependable, safe and honest consumption scenario.
AndersoNorus (1990) and strengthen said that trust is feeling
about satisfaction because of its ability to moderate risk in the buying
process, meaning that if a person believing in a product then feeling
satisfied should appear as a loss of severely screwing things will have risk
of loss from the purchase of the item.
7. Definition of Customer Commitment
Some literature describes as a back and forth between commitment
29 notions would then be means that whether in order or sense impression in
both of them that there may be differences.
Tim Jones (2007) explain that customer commitment has been
attracting the attention since Morgan and Hunt gave a rise to his theories
of relationship marketing, they say that customer commitment has
garnered much interest since Morgan and Hunt's (1994) the seminal work
on the trust's commitment theory of relationship marketing. Why customer
commitment is very interesting because it turns attention to customer
commitment with regard to various things as stated by Bansal et al (2004)
in Tim Jones (2007); our customer commitment is a powerful predictor of
various metric related to customer retention like switching/staying
intention and repurchase intention; Our Customer commitment is a very
influential predictor of a variety of matters related to customer loyalty as
the intensity of the repurchase.
In order for our understanding of the customer's commitment more
clearly, here the author pointed out some sense of customer commitments
as follows:
Jeff Hess and John Story (2005: 334) uses the term to refer to the
commitment form relationships with customers, beyond the end,
confidence, attitude and behavior towards the brand and things related to
the brand explains the sense of commitment as follows: We use the term
"commitment" to refer to the ultimate relationship's consumer's
30 brand and their relationship with that brand. Furthermore Moorman et al
(1992) in Tim Jones (2007) outlines that commitment, loosely defined as a
desire to maintain a valued relationship; Commitment interpreted as the
desire to maintain the relationship values.
Jeff Hess and John Story (2005: 319) stated that the Commitment
is a fundamental and powerful concept that can only be fully understood
and applied if decomposed into its major dimensions; commitment is a
strong basic concept can be understood if in applying on various
dimensions.
In the concept of buying resetting, originally Aaker (1991) says
that the purchase is one of the factors that determine the levels of customer
loyalty. But often, customers are buying in the absence of a certain feeling
of such goods (Mown, 1999).
Customers who do not have a commitment to the brand or the
online shop is customers who make a purchase on the anniversary of the
same brand, but it has no emotional attachment to the brand (Hawkins,
2004) in Jones (2010: 17). Added, this is done because they only have a
habit to buy in the store. So they make a purchase without having a feeling
of attachment to the brand or store where they bought the item.
Customer's own actual Commitment can be defined from various
sides, as stated by Jones (2010: 17) ' the commitment concept appearing in
31 definitions all reflect that commitment to a relationship involves both a
psychological state and a motivational phenomenon‟.
Customer's Commitment by Morman, et al (1992) in Garbarino and
Johnson (1999: 71) is ' enduring desire to maintain valued relationship '
where customers always want to maintain a good relationship with the
seller and hope that the relationship is worth. Ogba and further (2007: 4)
said that the commitment of the Subscriber is ' An enduring attitude or
desire for the particular brand. It is the degree to which customers as
members of an organization are committed to an emotionally an
organizations, its brand or product, hurricane status by continuous desire
to maintain membership ', not only the desire to consume a particular
brand, but also a level where customers feel as members of a producer
organization are emotionally tied to the company, whether through a brand
or product.
The importance of the customer's Commitment reflected in the
Jones article, et. Al. (2010: 16) who says that customer commitment is
powerful predictor to customer retention, like staying intention and
repurchase intention, thus our customer commitment is a key to a
marketing ' success, here it is revealed that the commitments from
customers will give you the desire to make a purchase that is repeated so
that it can successes the marketing strategy (Bansal, et. al, 2004, Fullerton,
32 Meanwhile Grun et al. (2000) in Tim Jones (2007) shared a
commitment within 3 (three) types, namely:
1. Affective Commitment as the degree to which a customer is psychologically bonded to the service organization on the basis of how favorable the consumer feels about the organization
2. Normative Commitment as the degree to which a customer is psychologically bonded to the organization on the basis of his/her sense of obligation to the organization Normative Commitment as the degree to which a customer is psychologically bonded to the organization on the basis of his/her sense of obligation to the organization
3. Continuance commitment as the degree to which a customer is psychologically bonded to perceive cost associated with terminating the relationship
Caudhari and Holbrook (2001) quoted Oliver (1999:34) explain that A deeply held commitment to re-buy or re-patronize a preferred product/service consistently in the future, thereby causing repetitive the same brand - set purchasing, despite situational influences and marketing effort having the potential to cause switching behavior.
Aaker (1991), and Assael, (1998) in Chaudhuri and Holbrook
(2001: 82) outlines that there are 2 different aspects of brand loyalty:
33 purchase of the brand, attitudinal positions, is a dispositional degree of
commitment in terms of some unique value associated with the brand.
Commitment indicated loyal customer shows 3 characteristics below:
1. They spend more money in purchasing product or service of a company
2. They encourage others to purchase products or service of a company
3. They believe it is valuable to purchase products or service of accompany
This commitment will only arise if consumers put trust either of
the products as well as against the companies; therefore the commitment is
very closely related to the level of consumer confidence.
Egan (2004) in Santouridis (2010: 333) say that loyalty is the
consumer behavior as measured from the number of repeat purchases
(repeat purchase), "share of wallet" and purchase frequency in a certain
period.
In Siddiqi (2011: 22), Singh and Sirdemuskh (2000) says that
Customer Loyalty as the "market place currency of the twenty-first
century". Ndubisi and Pfeifer (2005) provide an important entry that
serves a loyal customer is much more lightweight five times compared to
provide service to the customer. This statement shows that retain
34 same is expressed by Walsh (2005) that maintaining a loyal customer
more profitable than looking for new customers.
Reicheld and Sasser (2003) in Riadh (2011: 112) say that loyalty is
defined as a very strong commitment and depth, and empirically can
increase the level of profitability of the company. This is in line with what
was said by Oliver (1999), that loyalty is high in committeemen making a
purchase over and over on the same goods or services on a consistent basis
in the future and was deeply affected by the marketing activities
undertaken by the company, whether to make the transition to another
brand or not.
B. Previous Research
1. Brand Reputation with the Consumer’s Trust
Linked between Brand Reputation with the consumer's Trust,
reflected in the research conducted by Donney and Cannon, (1997) in
Cassalo, et. Al. (2011, 201) mentioned that ' the consumers who perceived
the website who have a good reputation are more likely trust the website.
Here is revealed the existence of a positive influence, in which consumers
who are convinced good reputation of the company or brand, will be more
trusted sites offering goods with those brands.
Research by Javernpaa, Tractinsky and Vitale (2000: 46) also says
that consumer's Trust in online shopping, consumers ' perceptions of how
35 that make up the perception of the consumer. Where is the Javernpaa
mentioned in his research that the Reputation of a company that sells a
product on line that affect trust, i.e. the perception form the reputation of
sites or stores that sell products and services on line, but not the reputation
that leads to a product or brand.
Li and Zhang (2002: 509) that the consumer will have the
confidence to shop online, in case of previous experience has a good
experience, and consumers that shopping on line has a good reputation.
Afzal (2011: 46) reveals if a buyer assumes that brand as worthy,
he also trusts that brand and make buying decisions. But if that brand does
not meet customer needs and doesn‟t have good value then s
