THE INFLUENCE OF SERVICE QUALITY AND BRAND IMAGE TOWARD CUSTOMER SATISFACTION THAT IMPACTS ON
COSTUMER LOYALTY
(Case Study onAl-Azhar Coorperative)
By : Ali Akbar 1110081100016
MANAGEMENT DEPARTEMENT INTERNATIONAL CLASS PROGRAM THE FACULTY OF ECONOMICS AND BUSINESS SYARIF HIDAYATULLAH STATE ISLAMIC UNIVERSITY
v PERSONAL INFORMATION Ali Akbar
Number 7, Pesantren Al-Ma’ ur RT RW 4, Kreo Selata , Larangan, 15156, Tangerang (Indonesia)
021-7376230 +6282114813828
29akbaralii@gmail.com
Sex Male| Date of birth 29 June 92 | Nationality Indonesia
Formal Education
Syarif Hidayatullah State Islamic University Jakarta, Faculty of Economics and Business (Management International)
MA Annajah Jakarta SMP Islam Al-Azhar 3 Bintaro SD Islam Al-Azhar 17 Bintaro TK Islam Al-Azhar 17 bBntaro
PERSONAL SKILLS
Mother tongue(s) Indonesian Language
Other language(s)
UNDERSTANDING SPEAKING
W
Listening Reading Spoken interaction Spoken production
English Language B1 B1 B2 B1 B
1
Levels: A1/2: Basic user - B1/2: Independent user - C1/2 Proficient user Common European Framework of Reference for Languages Organisational / managerial skills ▪ Organisasi Siswa Intra Sekolah 2008-2009 (President)
Computer skills ▪ Good command of Microsoft Office™ tools ▪ good enough of SPSS Statistical 17.0
▪ Photoshop and PhotoScape as an amateur photographer
Other skills ▪ Goalkeeper in Management International 2010 ▪ Self Defense Arts (Silat)
vi Publications
Presentations Projects Conferences Seminars Honours and awards Memberships References
▪National Seminar on “The Law of Business Competition : Comparative
Perspective (Islam –Europe)” held by Faculty of Sharia and Law Syarif Hidayatullah State Islamic University Jakarta on April 24, 2014 Mon
▪Global Conference “Empowering Local Wisdom and Youth for the Continuity of
Sustainable Development” held by Budi Luhur University Jakarta on 24 march 2014
vii
ABSTRACT
The aim of this research is to analyze the influence of service quality and brand image toward customer satisfaction that impacts on customer loyalty at Al-Azhar Cooperative. Convenience sampling method has been selected to obtain the data requires at this study. The research use 60 respondents and respondent’s entire member and non-member of Al-Azhar Cooperative. Path analysis used as analytical method in this research. The result of this research shows that service quality and brand image have significant influence simultaneously on customer satisfaction. Service quality has significant influence partially on customer satisfaction and brand image has significant influence partially on customer satisfaction. The second structure equation showed that service quality, brand image, and customer satisfaction have significant influence simultaneously on customer loyalty. Service quality has not significant influence on customer loyalty but brand image and customer satisfaction have significant influence on customer loyalty.
viii
ABSTRAK
Penelitian ini bertujuan untuk menganalisis pengaruh kualitas service dan citra merek terhadap kepuasan pelanggan dan dampaknya terhadap loyalitas pelanggan di Koperasi Al-Azhar. Convinience Sampling telah dipilih untuk memperoleh data dalam penelitian ini. Penelitian ini menggunakan 60 responden dan keseluruhan responden adalah member dan non-member Koperasi Al-Azhar. Metode yang digunakan adalah path analysis. Hasil penelitian menunjukan bahwa kualitas service dan citra merek berpengaruh secara simultan terhadap kepuasan pelanggan. Kualitas service berpengaruh secara partial terhadap kepuasan pelanggan dan citra merek berpengaruh secara partial terhadap kepuasan pelanggan. Pada persamaan struktur kedua menunjukkan bahwa kualitas service, citra merek dan kepuasan pelanggan berpengaruh secara simultan terhadap loyalitas pelanggan. Kualitas service tidak berpengaruh secara partial terhadap loyalitas pelanggan, tetapi citra merek dan kepuasan pelanggan berpengaruh secara partial terhadap loyalitas pelanggan.
ix
FOREWORD
Assalamualaikum Wr. Wb
Alhamdulillahhirobil alamin, I would say thanks to ALLAH SWT for all his gift and favor. Best regards also to prophet Nabi Muhammad SAW for being role model to me. So that I can complete this thesis to attain a Bachelor of Economy Degree in UIN Syarif Hidayatullah Jakarta.
In the process of drafting and preparation of this thesis author realized that thesis is far from perfect, because the perfection just only ALLAH SWT, but with effort, hard work, prayers, and never ending support given by families, friends and faculty supervisor. I say thanks to the people who have helped me in the preparation of thesis :
1. Thank you so much to my mother Hj. Nining Ratna Ningrum and my father H. Abdulloh Sholeh that always give me support and prayers that never stop during this time. Thank you Mama and Papa for always beside me, thanks for reminder me, helping me, caring me, advising me, and teach me how to be patient. Without prayers and support you are, I was nothing in this world. Thanks for everything Ma, Pa, I always Love you.
2. Prof. Dr Abdul Hamid, MS as a Dean of Faculty of Economics and Business of UIN Syarif Hidayatullah Jakarta and as a first supervisor, thank you so much for your recommendation and knowledge during guiding to finish my thesis.
3. Leis Suzanawaty, SE., M.Si as a Vice Dean of Faculty of Economics and Business of UIN Syarif Hidayatullah Jakarta and as a second supervisor, thank you for your recommendation, advice, time, and knowledge during guiding to finish my thesis.
4. Dr. Muniyati Aisyah, Ir.,MM as a Head of Management Studies Program and Titi Dewi Warinda,S.,MSIas a Secretary of Management Studies Program, that always aid me if I have difficulties, teach me something that I do not know, advice me if I make mistake, and very friendly.
5. Ahmad Rodoni, Prof.DR as Academic Lecture that always give me best solutions form beginning of semester.
6. All the Lecturers and Employees of Faculty Economics and Business UINSyarif Hidayatullah Jakarta to teach me all of subject about economy and business.
x
replace it with a smile, joke and laughter. Thanks always to be one of supporter of me. Love you deeply.
8. Aldi, Adit, Aisya, Aufa, Andro, Annisa, Beler, Baonk, Erby, Dadut, Tami, Sisca, Futri, Nonon, Mamang, Pampam, Sutand, Tama, Rahim, Rizma, Ghilman as my best friends, thank you for you always beside me, support me, and I never forget every moment for you all. Thanks for every moment you given to me. Thanks to willing to hear all those stories and give support me every time, I will missed every moment we spent together and I will missed you guys. We can achieve our dreams and our friendship will continue forever. You all amazing guys!
9. Adittya Prasetya Irwan, Annisa Gustiarawanti, and Abdiel Sandi thanks for helping me to complete this thesis, thanks for recommendation, time, and teach me. Success for all of you guys.
10.Basis Bank Mini thanks for every moment you given to me guys, I will never forget every joke we have, I will never forget guys. Success for Basis Bank Mini and all of you guys.
11.Senior and Junior of International Program 2008, 2009, 2011, and 2012 that I have missed the moment when we were spent together and all the memories ever undertaken when it became a class mate.
12.My friend in International Accounting 2010 and Regular Management 2010, I will never forget all the moment when we spent together.
Finally, the author expect for any critics and suggestion that could improve the content of this thesis, the author hopes to that the thought provoking contributions can give benefit to the reader, hopefully this thesis could be worthwhile for all of us. Amin
Wassalamualaikum Wr. Wb
Jakarta, 4 November 2014
xi LIST OF CONTAINS
COVER
ACCEPTANCE LETTER ... i
CERTIFICATION OF THESIS EXAM SHEET ... ii
CERTIFICATIONOF COMPREHENSIVE EXAM SHEET ... iii
STATEMENT OF AUTHENTICITY SCIENTIFIC WORK ... iv
CURICULUM VITAE ... v
B. Problem Formulation ... 5
C. Purpose of Research ... 5
D. Benefits of Research ... 6
CHAPTER II LITERATURE REVIEW A. Theoretical Basis 1. Marketing ... 7
a. Understanding of Marketing ... 7
b. Definition of Marketing Management ... 8
2. Service Quality ... 9
a. Definition of Service Quality ... 9
b. Dimension of Service Quality ... 11
3. Brand Image ... 12
xii
b. Measurement of Brand Image ... 14
c. Building Brand Image ... 15
4. Customer Satisfaction ... 15
a. Definition of Customer Satisfaction ... 15
b. Factor of Customer Satisfaction ... 17
c. Method of Measuring Customer Satisfaction... 18
5. Customer Loyalty ... 20
a. Definition of Customer Loyalty ... 21
b. Characteristic of Customer Loyalty ... 22
B. Previous Research ... 23
C. Conceptual Framework ... 27
D. Hypothesis ... 28
CHAPTER III RESEARCH METHODOLOGY A. Scope of Research ... 32
B. Determine Sample Method ... 32
1. Population ... 32
2. Sample Technique ... 33
C. Data of Collection Methods ... 34
1. Types of Data ... 34
a. Primary Data ... 34
b. Secondary Data ... 35
D. Data Analysis Method ... 36
1. Descriptive Analysis ... 36
2. Validity Test ... 36
3. Reliability ... 37
4. Path Analysis ... 37
5. The Coefficient of Correlation Test ... 39
6. The Coefficient of Determination ... 40
7. Simultaneous Test ... 40
8. Partial Test ... 41
xiii CHAPTER IV RESULT AND ANALYSIS
A. General Overview Research Object ... 45
1. History of Al-Azhar Cooperative ... 45
2. Organizational Structure of Al-Azhar Cooperative ... 46
3. Legal Entity of Al-Azhar Cooperative ... 46
4. Product and Business Units of Al-Azhar Cooperative ... 47
B. Analysis and Discussion ... 48
1. General Description and Respondent Data ... 48
2. Validity Test ... 51
3. Reliability Test ... 54
C. Descriptive Analysis ... 57
1. Service Quality ... 57
2. Brand Image ... 61
3. Customer Satisfaction ... 64
4. Customer Loyalty ... .67
D. Analysis Result ... 72
1. Path Analysis ... 72
a. Testing Relationship Between Sub Variable... 72
2. Hypothesis Test ... 76
a. Coefficient of Determination (R2) ... 76
3. Simultaneously Test ( F Test ) ... 78
a. Simultaneously Test of Substructure I ... 78
b. Simultaneously Test of Substructure II ... 79
4. Partial Test ... 81
a. Partial Test of Substructure I... 81
b. Partial Test of Substructure II ... 84
E. Path Analysis Diagram ... 88
F. Influence Calculation ... 88
1. Influence Calculation Substructure I ... 88
xiv CHAPTER V CONCLUSION AND SUGESTION
A. Conclusions ... 92
B. Suggestion ... 93
REFERENCES ... 96
xv LIST OF TABLE
Number Description Page
1.1 Data Member ... 4
3.1 Likert Scale of Five Levels ... 35
3.2 The Level of Coefficient Correlation... 39
3.2 Operational Variable ... 42
4.1 Respondent Gender ... 48
4.2 Respondent Age ... 48
4.3 Respondent Occupation ... 49
4.4 Respondent Income per Month ... 50
4.5 Validity Test : Service Quality (X1) ... 51
4.6 Validity Test : Brand Image (X2) ... 52
4.7 Validity Test : Customer Satisfaction (Y1) ... 52
4.8 Validity Test : Customer Loyalty (Y2) ... 53
4.9 Reliability Test : Service Quality (X1) ... 54
4.10 Reliability Test : Brand Image (X1) ... 54
4.11 Reliability Test : Customer Satisfaction (Y1) ... 55
4.12 Reliability Test : Customer Loyalty (Y2) ... 55
4.13 Employee of Al-Azhar Cooperative always maintain the cleanliness of room ... 56
4.14 Employee of Al-Azhar Cooperative look clean and attractive ... 57
4.15 Employee of Al-Azhar Cooperative provide service in accordance with time promised ... 57
4.16 Employee of Al-Azhar Cooperative resolve problems quickly when there is the problem ... 58
4.17 Employee of Al-Azhar Cooperative willing to help me when I had difficulties in choose the product ... 58
xvi
4.19 Employee of Al-Azhar Cooperative understand customer
needs that are needed by the customer ... 59
4.20 The price offered by Al-Azhar Cooperative quite affordable ... 60
4.21 The quality product of Al-Azhar Cooperative is not doubted ... 61
4.22 Brand of Al-Azhar Cooperative has an attractive design then other brands ... 61
4.23 Al-Azhar Cooperative has a lot of variety products ... 62
4.24 Brand of Al-Azhar Cooperative is easy to pronounce ... 62
4.25 Al-Azhar Cooperative brand is easy to remember ... 63
4.26 Al-Azhar Cooperative is a cooperative which receive the customer complaint ... 63
4.27 Al-Azhar Cooperative is a cooperative which provide good information about something that is needed by the customer ... 64
4.28 The customer of Al-Azhar Cooperative is a loyal customer ... 64
4.29 Al-Azhar Cooperativealways give more attention to customer ... 65
4.30 Al-Azhar Cooperative customers feel safe and comfortable to cooperative ... 65
4.31 Al-Azhar Cooperative is a cooperative which always give suggestion and complaint of their customer ... 66
4.32 Al-Azhar Cooperative is better than other cooperative ... 67
4.33 Al-Azhar Cooperative has a good product quality ... 67
4.34 I feel confidence with Al-Azhar Cooperative ... 68
4.35 I prefer Al-Azhar Cooperative than the other products ... 68
4.36 I really like Al-Azhar Cooperative ... 69
4.37 I intend to keep buying of Al-Azhar Cooperative product ... 69
xvii
4.39 I will recommend Al-Azhar Cooperative to family and
friend ... 70
4.40 Correlation Coefficient Substructure I ... 71
4.41 Testing Relationship between variable Substructure I ... 72
4.42 Correlation Coefficient Substructure II ... 73
4.43 Testing Relationship between variable Substructure II ... 74
4.44 Coefficient Determination of Substructure I ... 75
4.45 Coefficient Determination of Substructure II ... 76
4.46 Analysis of Variant (ANOVA) of Substructure I ... 77
4.47 Analysis of Variant (ANOVA) of Substructure II ... 78
4.48 Result Partial Test Substructure I ... 80
4.49 Partial Test The Influence of Service Quality and Brand Image to Customer Satisfaction ... 82
4.50 Result Partial Test Substructure II ... 83
4.51 Partial Test The Influence of Service Quality, Brand Image, and Customer Satisfaction to Customer Loyalty ... 86
4.52 Direct and Indirect influence of Service Quality (X1) to Customer Satisfaction (Y1) ... 87
4.53 Direct and Indirect influence of Brand Image (X2) to Customer Satisfaction (Y1) ... 88
4.54 Direct and Indirect influence of Brand Image (X2) to Customer Loyalty (Y2) ... 89
xviii LIST OF FIGURE
Number Description Page
1 CHAPTER I
INTRODUCTION
A. Research Background
As one of institutional cooperative which have a purpose for increase the
human welfare, the cooperative has focused to the importance of people in low
economy. In this thing, mutual becomes the first foundation for get all purpose.
According to Kartasapoetra et al (1991:1) cooperative is mutual
institution which have moved in economic sector. They are generally
composed based on low economy and equal rights which have obligation to do
some efforts for fulfill needs and wants of its members.
As one of institutional economic, cooperative has to practice the
principles of economic in order to live sustainable. The cooperative has to
work economically, efficient in business, and good management because those
things can increase the economy global and human welfare, especially for their
members.
According to data Sekretariat Kabinet Replublik Indonesia, the growth of
cooperatives has increase 4,5% from 2009 until 2013. In 2009 the total
numbers of cooperative around 170.411 units, while on June 2013 the number
of cooperatives has increase to 200.808 units.
From the data above, it shows that the total number of cooperative always
growth every year, even it could decrease if the cooperative could not survive.
In order to avoid that thing, the cooperative can use the concept of marketing
2
loyalty. These thing becomes main discussion that will be described in this
research.
Marketing becomes important thing for success in all organizations and
business, because in order to fulfill needs and wants the customer, every single
organization or company have to understand planning, distributing, and
promoting goods and services. Marketing as the process of planning and
executing the conception, pricing, promotion, and distribution of ideas, goods,
and services to create exchanges that satisfy individual and organizational
objectives. (Belch and Belch, 2009:8).
The cooperative or company that run a system of effective and efficient
marketing will get more revenue.One of the element marketing that can be
used is service quality, brand image, customer satisfaction, and customer
loyalty.
Service is the one important thing in selling the product. Cooperative
never stop give a good service to the customer, because service determine the
quality and professionalism some organization in order to get more benefit.
Good service can give more profit to company. In the other side bad services
can give disaster to company. To get a good service, cooperative has to
understand about service quality.
In other side, cooperative never stop make revenue, while other
cooperative always try to increase their performance trough service quality. It
can be dangerous if the cooperative always think how to get revenue as much
3
good service quality will create a good brand image, if the cooperative
provides good services.
Brand image is one of elements marketing. Consumers think that brand as
an important part of the product and image of company. Good brand will create
an additional value to some product. Brand image is the picture of value or
benefit received by the consumer, not only the physical picture but the benefit
or value of the product, because quality of the product can influence the
consumer's decision for buy the product. (lovelock, 2005:380)
After the cooperative provides good service quality, consumers will feel
the level of satisfaction. That thing refers to the customer satisfaction. From
customer satisfaction can show how far the cooperative provides excellent
service, consumer will feel satisfied or not satisfied after what they consume. Is
it equals with their expectation or below from their expectation.
Satisfaction is a person’s feeling of pleasure or disappointment resulting
from comparing a product’s perceived performance (or outcome) in relation to
his or her expectations. Therefore, satisfaction is closely related to consumers
expectations. (Sondoh., et al:2007).
In the other hand, satisfaction also can make the customer more loyal to
the product, because they already used the product and the result equal with
their expectation and based on their experience. This thing refers to customer
loyalty. The one of characteristic customer loyalty was doing re-purchase to
same company.
In this research, the object is Azhar Cooperative. As we know that
4
has a good reputation among another cooperative, because they always provide
service quality to keep their brand image always good andconsumer will feel
the satisfaction, so they will be loyal.
In fact, a few years ago started from 2009-2012 Al-Azhar Cooperative
had increased number of members. But in recent years, especially in 2013
Al-Azhar Cooperative had decreased number of members. This is what happens to
Al-Azhar Cooperative which was founded from 1969 until now that had
decreased number of members in 2013. Here is the number data cooperative
members of Al-Azhar until the end of 2013 :
Tabel 1.1
Source : Laporan Pertanggungjawaban Pengurus dan Pengawas Koperasi Al-Azhar masa bakti 2009-2013
Research needed to know what factor that influence decreasing number of
members. The variety of consumers in order to fulfill their daily needs and
wants could be affected from several factors. It can be from consumer or from
cooperative.
From the background above, the author took some of several variables
relating the background research to investigate the service quality and brand
5
as a endogenous variable (Y). Based on these descriptions, the author makes a
research with title.
“THE INFLUENCE OF SERVICE QUALITY AND BRAND IMAGE TOWARD CUSTOMER SATISFACTION THAT IMPACTS
ON COSTUMER LOYALTY” (Case Study of Al-Azhar Coorperative).
B. Problem Formulation
Based on the background described above, so the formulation of the
problem that will be explained in this research are :
1. Does service quality have influence customer satisfaction partially?
2. Does brand image have influence customer satisfaction partially?
3. Do service quality and brand image have influence customer satisfaction
simultaneously?
4. Does service quality have influence customer loyalty partially?
5. Does brand image have influence the customer loyalty partially?
6. Does customer satisfaction have influence customer loyalty partially?
7. Do service quality, brand image, and customer satisfaction influence
customer loyalty simultaneously?
C. Purpose of Research
Every research have a purpose. The purpose of this research are :
1. To analyze the influence of service quality on customer satisfaction
partially.
6
3. To analyze the influence of service quality and brand image on customer
satisfaction simultaneously.
4. To analyze the influence of service quality on customer loyalty partially.
5. To analyze the influence of brand image on customer loyalty partially.
6. To analyze the influence of customer satisfaction on customer loyalty
partially.
7. To analyze the influence of service quality, brand image, and customer
satisfaction on customer loyalty simultaneously.
D. Benefit of Reaserch
Given this research, the researcher hope that the results of this research
has benefits for all parties, while the benefits include :
1. For Author
To get more knowledge and experience in conducting research, train the
ability that have been learned in lecture or class into scientific forms and
compare between the theory obtained by the fact that happen in the field.
2. For Al-Azhar Cooperative
Thorough this research, Al-Azhar cooperative will see the dominant
factors among service quality, brand image, customer satisfaction and
customer loyalty. Therefore, based on these factors can help the
cooperative to develop become better and repair the performance.
3. For Readers
The readers may use this research as the material for comparing the
factors that influence among service quality, brand image, customer
satisfaction and customer loyalty. So, the information can be used in
7 CHAPTER II
LITERATURE REVIEW
A. Theoretical Basis
1. Marketing
a. Understanding of Marketing
Marketing is one of important activities that had been done by
organization or company to involve their business and keep a life.
Some people think that marketing is only selling and advertising the
product. Actually in business, marketing was a main element for make
a planning and distributing the ideas so the people can know and buy
the product from its company.
Definition of marketing has a lot of explanation from several
expert. Every expert has own opinion and outlook, but all of them
have a similar understanding between each other. Here are some
definition of marketing that author quotes from several expert :
According to Peter and Donnelly (2009:1) marketing as an
organizational function and a set of processes for creating,
communicating, and delivering value to customers and for managing
customer relationships in ways that benefit the organization and its
stakeholders.
According to Belch and Belch (2009:8) marketing is the process of
planning and executing the concept, pricing, promotion, and
distribution of ideas, goods, and services to create exchanges that
8
According to Kotler and Keller (2009:5) marketing is a societal
process by which individuals and groups obtain what they needs and
wants through creating, offering, and freely exchanging products and
services of value with others.
From the definition above marketing that have been explained by
the expert, author can make a conclusion that marketing is a process
that do by individual and group to fulfill their needs and wants with
profitable ways.
b. Definition of Marketing Management
Marketing management is divided from two words namely
management and marketing. Basically management consists of design
and implementation plan. In making some plan, need the ability to
create strategy and plan. Plan is needed for distribute the ideas that
have been designed in order to get benefit from sales result.
In this case, definition of marketing management also have
different explanation from several expert, but all of them have a
similar understanding between each other. Here are some definition of
marketing management that author quotes from several expert :
According to Peter and Donnelly (2009:15) marketing
management is the process of planning and executing the conception,
pricing, promotion, and distribution of goods, services, and ideas to
create exchanges with target groups that satisfy customer and
9
According to Kotler and Keller (2009:5) marketing management is
the art and science of choosing target markets and getting, keeping,
and growing customer through creating, delivering, and
communicating superior customer value.
From the definition above marketing management that have been
explained by the expert, author can make a conclusion that marketing
management is a concept or art were designed to attract buyers for buy
a product or service.
2. Service Quality
a. Definition of Service Quality
Service quality is one of important factors in order to achieve
competitive advantage. Service has variety meaning and traditionally
difficult to describe. Even more difficult were the fact how to create
and send the service to customer often hard to understand. Some
expert also define in different ways, here are the definition of
Lovelock and Wright (2005:5) :
1) Service is an act or performance that had offered by one party to
the other party. Although the process might be related to the
physical product, the performance is essentially intangible and
usually the result does not have ownership to factor of production.
2) Services are economic activities that create and deliver benefits to
customers at a particular time and place, as the result of actions that
10
According Lovelock and Wirtz (2005:9) services are economic
activities that have offered by one party to another party, most
commonly employing time-defined performances to bring about
desired result in recipients themselves or in object or other assets for
which purchasers have responsibility.
According to Kotler et al (2009:139) quality is the totality of
features and characteristics of a product or services that bear on its
ability to satisfy stated or implied needs.
According to Lovelock and Wright (2005:96) service quality is
long term evaluation customers to deliver some service through a
company. Service quality can be determined with comparing the
perception of consumer for services which clearly they had received
or get from the a real service what they were expecting or desired to
the service attribute some company.
According to Santouridis and Trivellas (2010) service quality is
usually understood as a measure of how well the level of the delivered
services matches customer’s expectations.
Service is the most important element to know customer
satisfaction in consuming the product or service. Customers will
compare what they were expecting for accepted with what their truly
received during the post-purchase step of the process buying service.
They had decided whether satisfied or dissatisfied with delivering the
11
If the service that received and perceived suitable with
expectation, so the service quality has a good perception and satisfied.
If the services received beyond the consumer expectations, so the
service quality has a very good perception and good quality. Whereas,
if the services received is lower than expected, then service quality has
a bad perception.
From the definition above service quality that have been
explained by expert, the author can make conclusion that service
quality is any kind of activity that performed by company in order to
fulfill consumer expectations. In this case, service defined as a service
that deliver by owner such as easier, speed, relationship and politeness
which shown through attitude and character in delivering service for
customer satisfaction.
b. Dimension of Service Quality
The cooperative or company can stay ahead and compete because
they give a service with high quality, consistent, and continuous.
Every company have to maintain service quality that had given, even
make some improvement so the expectation from consumer could be
fulfilled.
To provide good service quality to customer, we have to know the
thing that customer expect from service quality that we had provided.
In this case, there are five dimension service quality based on
12
1) Tangibles
The appearance of physical facilities, equipment, personnel, and
communication materials.
2) Reliability
Ability to perform the promised service dependably and accurately.
3) Responsiveness
Willingness to help customers and provide prompt service.
4) Assurance
Credibility, security, competence, and courtesy.
5) Empathy
Access, communication, and understanding customer.
3. Brand Image
a. Definition of Brand Image
13
Brand was an important attributes from some product. Moreover,
brand was an identity to differentiate company’s product with another
product. In this case, definition of brand image has different
explanation from several expert, but all of them have a similar
understanding between each other. Here are some definition of brand
image that author quotes from several expert :
According to Kotler et al (2009:296) brand is a name, term, sign,
symbol, or design, or some combination of these elements, intended to
identify the goods and services of one seller or group of sellers and to
differentiate them from those of competitors. The different
components of a brand names, logos, symbols, package, designs, and
so on are brand elements.
According to Petter and Donnelly (2009:85) brand is a name,
term, design, symbol, or any other feature that identifies one seller’s
good or services as distinct from those of other sellers.
According to Keller (2008:2) 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 group of sellers and to differentiate them from those competition.
According to Keller (2008:51) brand image is consumer’s perception about the brand, as reflected by brand association held in consumer memory.
From the definition above brand image that have been explained
by expert, the author can make conclusion that brand image is the
14
differentiation between another company.
b. Measurement of Brand Image
According to Keller (2008:56) defined the measurement of
brand image can conducted based on the aspects of a brand,
namely :
1) Strengthens
The more deeply a person thinks about product information
and relates it to existing brand knowledge, the stronger result
brand associations will be. The strength in this case are the
advantages owned by a physical brand which not found from
another brand. The advantages of this brand refers to the
physical attributes, so commonly as the advantages compared
to the other brand. What is included in group strength namely;
physical product, quality product, function of product facilities,
price product, and the appearance of supporting facilities to its
products.
2) Uniqueness
15
3) Favorable
Favorable refers to the ability of the brand to be easily
remember by consumers. What is included in this category
namely; brand easy to say, the ability of brand to be
remembered by consumers, or the suitability between the
impression of brand in mind of consumer with brand image
company above its brand.
c. Building Brand Image
According to Joe (2004:20) establishment of brand image in
consumer perspective are not happen in a relatively short time, but
in the long term, and not takes many years. Establishment of brand
image are influenced by:
1) The quality of product that produce.
2) Services provided.
3) The company's reputation.
4) The company’s policy.
5) Marketing activities of the company itself.
4. Customer Satisfaction
a. Definition of Customer Satisfaction
Everyone knows what satisfaction is, until asked to give a
definition. Then seems nobody knows. In less technical terms we
interpret this definition to mean that satisfaction is the customer’s
16 service has met the customer’s needs and expectations. Failure to meet
needs and expectations is assumed to result in dissatisfaction with the
product or service. (Zeithaml., et al 2006:110)
Customers have experience different levels of satisfaction or
dissatisfaction after they consume product or service which was
suitable with their expectation. Because satisfaction is the emotional
condition, reaction after bought something could be anger,
dissatisfaction, aggravation, neutrality, excitement, or enjoyment.
(Lovelock and Wirght, 2005:102).
Customer satisfaction can be achieved only with giving high
quality service to the consumer. Good service and quality had been
judged by consumers directly from employee as a person who serve a
service or also called producer services. Because it takes some effort
to improve service quality system that had given to fulfill the desire
and increasing customer satisfaction. So, service quality was the first
thing to measure improvement customer loyalty to become something
important that we have to be considered by company in order to
achieve customer satisfaction.
According to Kotler et al (2009:136) satisfaction is a person’s
feelings of pleasure or disappointment resulting from comparing a
products perceived performance (out-come) in relation to his or her
expectations. If the performance falls short of expectations, the
customer is satisfied. If the performance exceeds expectations, the
17
Service quality has a close relationship with customer satisfaction.
Quality gives a push to consumers for establish a strong relationship
with the company. In the long term, this relationship enable
companies to understand consumer expectations and needs carefully.
Thus, companies can increasing customer satisfaction and at the end
its satisfaction can create loyalty or customer loyalty.
In order to get customer satisfaction, companies can give an
excellent service quality. Because that things can fulfill the consumer
needs and expectations. Satisfaction is the fulfill response of customer
about the service and product. It is also a finding about the product
and service feature or the product and services itself; satisfaction is
conceptualized as an overall, customer attitude towards a service
provider. Thakur and Singh (2012)
From the definition above customer satisfaction that have been
explained by expert, the author can make conclusion that customer
satisfaction is the expectation based on what customer perceives.
b. Factor of Customer Satisfaction
According to Rangkuti (2003:30) customer satisfaction defined as
the response of consumer to mismatch between previous importance
level and the actual performance after used. The factors that affect
18
1) Customer value, namely :
a) Accept customer complaint.
b) Responses customer complaint.
c) Have many types of services.
d) Give a good information to customer.
2) Customer Response, namely :
a) Keep loyal for a long time.
b) Buy more when company introduce new product and renew
existing product.
c) Talk a good thing about the company product.
d) Give a little attention to brand and advertising competitor.
e) Offering the service or product ideas to company.
3) Customer perception, namely :
a) Customer feel satisfied with process and services provided.
b) Customers feel safe and comfortable when have a deal to
company.
c) Give a advice to customer complaint either through the
suggestion box or e-mail.
c. Method of Measuring Customer Satisfaction
Kotler and Amstrong (2003:148) discuss several methods to
19
1) Complaint and Suggestion system
Each customer oriented service organization should provide the
widest opportunity to its customers to submit suggestion, criticism,
opinions, and their complaints. Information obtained through this
method can provide new ideas and input are valuable to the
company making it possible to react quickly and respond in
overcome the problems that arise.
2) Customer satisfaction survey
Like in this research, company can do a survey to measure
customer satisfaction using such as questioner or by phone calls to
a random sample of their customers. Through the survey,
companies will get responses and feedback directly from customers
and give a positive sign that companies pay attention to them.
Customer satisfaction survey is divided into four categories, which
are :
a) Directly report satisfaction
The respondents are being asked directly with question in order
to know if they are very satisfied, satisfied, neutral, dissatisfied,
or very dissatisfied. This survey is to used to collect the
customer opinion and needs which can give the result called the
customer satisfaction index. This customer satisfaction index’s
20
b) Derived dissatisfaction
The question that being asked included two aspect, how high is
the customer expectation in the certain attribute, and how high
is the performance that customer’s feel of this attribute.
c) Problem analysis
The respondents are being asked to describe two things; the
problem which related with the company offer and suggestion
for improvement.
d) Importance performance analysis
The respondents are asked to rate the services according to the
customer importance and company performance in each
attributes.
e) Ghost shopping
This method use a person to pose as potential buyer to report
their findings on strong and weakness points when experience
buying the company’s and competitor’s product. Ghost shoppers
also can observe how the company and its competitors in
serving customer demands, answering customer question, and
solve any problems or customer complaints.
f) Lost customer analysis
The company contact customers who have stopped buying or
21
happened and in order to understand and take the police to
further improve or refine.
g) Some caution in measuring customer satisfaction
The company must make a well-structured questionnaire;
otherwise the customer would face a huge questionnaire. The
company must also be able to recognize that two customers can
report being highly satisfied for two reasons. One person maybe
easily satisfied most of the time, and the other one might be
hard to please but was pleased on this occasion.
5. Customer Loyalty
a. Definition of Customer Loyalty
Customer loyalty is the purpose form organization or company to
have a strong relationship with members, that thing can involve the trust
between company and customer, because the customer has been loyal to
its product and they will not move to other product or brand, at the end
the company can get more revenue.
According to Manish (2001) customer loyalty is winning the
confidence of the customer in favor of an organization such that the
relationship becomes a win and win solution for both the organization as
well as the customer. Customer loyalty is not only the customer
incorporated to company. Customer loyalty is something more of what an
22
customer is not only build loyalty to company, but the company has to
maintain its loyalty to the customer.
According to Lovelock and Wright (2005:133) loyalty is customer
decision to voluntarily always became a member with a particular
company in long term periods.
From the definition above customer loyalty that have been explained
by expert, the author can make conclusion that customer loyalty is some
relationship between company and customer to create trustiness, because
the customer feel satisfied with its product.
b. Characteristic of Customer Loyalty
Customers who are loyal is an important asset for the company, it can
be seen from their characteristics, according to Griffin (2010:130) the
characteristic of customer loyalty such as :
1) Recommending the products or services to other.
2) Buy the product line or services.
3) Shows the immunity from attraction similar product of competitors.
4) Making a purchase regularly
In order to be a loyal customer, customer has to pass several steps.
According to Lovelock and Wirtz (2004:352) there are four steps to
measure customer loyalty. The steps are as follows :
a) Cognitive Loyalty
23
service is become determine factor. Consumers become loyal in a
cognitive sense, it can be perceiving from brand attribute
information that one brand is better than other and the product has a
good quality (Tjokroaminoto and Kunto, 2014). This means,
information held by a consumer confidence must point to a brand is
considered to be superior over the competition.
b) Affective Loyalty
In this step of loyalty, the position has a strong influence, either in
behavior or the component that have influence to satisfaction. This
condition is difficult to be eliminated, because the loyalty has been
planted in customer mind not as awareness or expectation. Affective
loyalty indicates the preferences and liking the
brand/stores/services.
c) Conative Loyalty
This step has contain the high purchase intention such as keep buy
some product. The desire to do re-purchase or be a loyal are the
action can be anticipated but not realized.
d) Action Loyalty
Action or behavioral loyalty is the stage where behavioral intentions
get converted into actions. Behavioral loyalty has been considered
as repeat purchases frequency or proportion of purchase and
24 B. Previous Research
This previous research on this topic has been contacted by :
1. Ilias Santouridis and Panagiotis Trivellas (2010) in their study entitled “Investigating the impact of service quality and customer satisfaction on
customer loyalty in mobile telephony in Greece”. The purpose of this
research is to investigate crucial factors that lead to customer loyalty in
the mobile telephony sector in Greece, namely service quality and
customer satisfaction. Furthermore, the mediation effect of customer
satisfaction on the service quality and customer loyalty relationship is also
to be examined. Field research was conducted. The questionnaire was
formed by a synthesis of existing constructs in relevant literature. The
main research target sample consisted of residential non-business mobile
phone users in Greece. Reliability tests and statistical analyses were
performed to both confirm scale validity and reliability and answer the
research questions. The dimension of service quality has significant
influence to customer satisfaction, and also has significant influence to
customer loyalty. The mediation role of customer satisfaction to service
quality and customer loyalty relationship has been confirmed. For a more
holistic investigation approach of customer loyalty, a future study could
examine other antecedents such as trust, inertia and attractiveness of
alternatives. Moreover, the investigation of the mediation role of
switching costs on the link between satisfaction and loyalty could enhance
25
mature market such as that of Greece, to understand what the drivers of
customer loyalty are. The present study produced useful findings, which
can be utilized by mobile telephony provider managers, in their effort to
develop and implement successful customer loyalty strategies.
2. Satendra Thakur and DR. A. P Singh (2012) in their study entitled“Brand
image, Customer Satisfaction,andLoyalty Intention: Study in the Contextof
Cosmetic ProductAmong the people of Central India”. This research
article is examine the relationship between brand image, customer
satisfaction and loyalty intention in the context of cosmetic product of
selected company brand among the peoples of central India, five benefit of
brand image have been discussed namely social, functional, symbolic,
experiential and appearance enhance. Information has been obtained from
150 male as well as female customers who always used the cosmetic
product of selected brand for the proposed research work. Result has
shown that three brand image benefit namely functional, social and
appearance enhance have positively and significantly related to customer
satisfaction and loyalty intention and two benefit namely experiential and
symbolic have no significant impact on customer satisfaction and loyalty
intention on the other hand result indicate that there is a positive
relationship between customer satisfaction and loyalty intention. The
results imply that marketing manager should focus on the brand image to
win the customer satisfaction in order to make the customer loyal about
26
3. Dwi Aryani and Febrina Rosinta (2010) in their study entitled “The
Influence of Service Quality toward Customer satisfaction in shipping
Customer Loyalty on PT. Human Resource Development”. This research
articleis examine the relationship among service quality, customer
satisfaction, and customer loyalty. The research is quantitative with use
non-probability purposive sampling technique. The instrument of the
research uses questionnaires which were analyzed with Structural
Equation Modeling. The result of the research shows that the five
dimensions such as physical evidence, empathy, reliability, quickness, and
guaranty positively affect the service quality. The other results show that
customer’s satisfaction is a preceding factor of customer’s loyalty. The
direct effect of service quality on customer’s loyalty does not sustain the
research, since the researcher did not find any significant direct relation
between service quality and customer’s loyalty.
4. Endang Tjajaningsih (2013) in her study entitled “The Influence of Brand
and Promotion to Customer Satisfaction that Impact Customer Loyalty
(Study Case on the Member of Carrefour Semarang)”. This research
article is examine the relationship image, promotion, customer satisfaction,
and customer loyalty. This research aims to develop and test empirical
model of development customer loyalty on the basis of image and
promotion. The research was conducted at Customer of Carrefour
27
analysis by using some software, such as: SPSS 16.0 and Microsoft Excel
version 2007. The sample size of the study was 100 Customer of Carrefour
Supermarket in Semarang. The results showed that image affect positively
towards customer satisfaction and promotion affect positively towards
customer satisfaction. Image, promotion, and customer satisfaction affect
positively towards customer loyalty. Furthermore, mediating effect of
customer satisfaction apply to image effects on customer loyalty.
Customer satisfaction serves as a mediating variable between the variable
image on customer loyalty. Mediating effect of customer satisfaction apply
for promotion effect on customer loyalty. Customer satisfaction serves as a
mediating variable between promotional variables on customer loyalty.
C. Conceptual Framework
According to Sugiyono (2009:89) defines that the conceptual framework
is a synthesis about relationship between variables which compiled from a
variety of theories that have been described, next analyzed critically and
systematically, so that creating the synthesis about the relationship between
variable that studied.
In this conceptual framework, there are two variable exogenous such as
service quality and brand image. Two variable endogenous such as customer
satisfaction and customer loyalty. The purpose of this research is toanalyze the
influence of service quality and brand image toward consumer satisfaction that
impacts on customer loyalty at Al-Azhar Cooperative. Here for the picture of
28
stated as a possible answer to the researcher question. A useful hypothesis is a
predictable statement that may include a prediction explanation. (Malhotra,
2009:78).
According to Sugiyono (2009:93) hypothesis is a temporary answer to the
research formulation problems. The author has generated seven hypotheses
associated with the model. These hypotheses focus on the relationship among
service quality, brand image, customer satisfaction, and customer loyalty. The
seven hypotheses are as follows :
29
1. The Relationship Service Quality and Customer Satisfaction
According to Aryani and Rosinta (2010) in order to analyze how
service quality can effect customer satisfaction, we need five dimensions
of service quality such as tangible, reliability, responsive, assurance, and
empathy. The instrument of service quality can be directly influence
customer satisfaction, the definition of satisfaction refers to a person’s
approval or disappointment when their personal opinion of services
received with their original service expectations (Liao and Hseih, 2010).
Thus, the hypothesis can be drawn as follows :
H0 = Service quality doesn’t have influence on customer satisfaction
H1 = Service quality has influence on customer satisfaction
2. The Relationship Brand Image and Customer Satisfaction
According to Tjokroaminoto and Kunto (2014) suggest that the
concept of brand image is the idea to get the customer satisfaction. Brand
is powerful factor that effects customer satisfaction. Brand becomes the
most important factor to get the relationship between company and
customer. The concept is based on three factor such as strength of brand
association, uniqueness of association, and favorability of association.
H0 = Brand image doesn’t have influence on customer satisfaction
30
3. The relationship Service Quality and Brand Image toward Customer
Satisfaction
According to Kotler et al (2009:136) satisfaction is a person’s feelings
of pleasure or disappointment resulting from comparing a products
perceived performance (out-come) in relation to his or her expectations.
The expectation is come from services. Services are economic activities
offered by one party to another, service customer expect to obtain the
value from access to labor, professional skills, facilities, networks,
systems, and equipment (Lovelock et al., 2005:9). Meanwhile brand image
is supporting element for know how far service quality and customer
satisfaction, because brand is the activity in marketing program. Thus, the
hypothesis can be drawn as follows :
H0 = Service quality and brand image don’t have influence on
customer satisfaction
H1 = Service quality and brand image have influence on customer
satisfaction
4. The Relationship Service Quality and Customer Loyalty
Service quality can be directly influence customer loyalty, the concept
of service quality determine how consumer loyal to product or service. It
can be seen when the consumer doing repurchase and willingness to
recommend the company’s product to another (Griffin, 2012:31). Thus, the
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H0 = Service quality doesn’t have influence on customer loyalty
H1 = Service quality has influence on customer loyalty
5. The Relationship Brand Image and Customer Loyalty
The possible outcomes of developing brand image can create greater
loyalty by three major ways; through the initial choice of brand elements
making up the brand, through marketing activities and the design of
marketing program, and through leverage of secondary association (Keller,
2008:638). Thus, the hypothesis can be drawn as follows :
H0 = Brand image doesn’t have influence on customer loyalty
H1 = Brand image has influence on customer loyalty
6. The Relationship Customer Satisfaction and Customer Loyalty
The relationship between customer satisfaction and customer loyalty
has been explained in a number of ways. According to Lee et al (2007)
customer satisfaction is viewed as a function of perceived performance and
expectations and consumer behavioral studies show that customers who
are only just satisfied still find it easy to switch over when a better offer
comes along. According to Lewis and Newman (2001) satisfaction is an
element to fulfills the need of the customers to product. The unsatisfied
customers will spread their negative impression to other consumers.
Consequently, it will create customer dissatisfaction which decrease
customer loyalty. This implies that customer satisfaction and customer
loyalty are highly related (Hoq et al.,2010).Thus, the hypothesis can be
32
H0 = Customer satisfaction doesn’t have influence on customer
loyalty
H1 = Customer satisfaction has influence on customer loyalty
7. The Relationship Service Quality, Brand Image, and Customer
Satisfaction toward Customer Loyalty
According to Liao and Hseih (2011) service quality, brand image, and
customer satisfaction have direct relation to customer loyalty. Service
quality might be dominant factor especially tangible, reliability,
responsive, empathy, and assurance. In addition, if the company wants to
maintain to customer loyalty, it needs to focus on the strength brand,
customer’s expectation, and actual performance. Thus, the hypothesis can
be drawn as follows :
H0 = Service quality, brand image, and customer satisfaction don’t
have influence on customer loyalty
H1 = Service quality, brand image, and customer satisfaction don’t
33 CHAPTER III
RESEARCH METHODOLOGY
A. Scope of Research
This study aims to test hypothesis about variable service quality, brand
image, customer satisfaction, and customer loyalty of Al-Azhar Cooperative.
Scope of research for this studies are as follows:
1. The focus of the author in this study is the influence of variables service
quality and brand image towards customer satisfaction that impacts on
customer loyalty.
2. The location and the object to be examined are member and non-member
Al-Azhar Cooperative that located in Jl. Sisingamangaraja Komplek
Masjid Agung Al-Azhar, Kebayoran Baru, South Jakarta, Telephone :
021-72788801 & 021-7253324 period February – August 2014.
3. In this study consisted used two variables are exogenous variables and
endogenous variable. Exogenous variable in this research is service quality
given symbol (X1) and brand image given symbol (X2). Endogenous
variable in this research is customer satisfaction given symbol (Y1) and
customer loyalty given the symbol (Y2).
B. Determine of Sample Method
1. Population
The population in this study is the member and non-member Al-Azhar
Cooperative, here the researcher does not restrict the respondent from
34
subjects that have certain quality and characteristic designed by author for
learned and at the next pulled the conclusion. (Sugiyono, 2009:115)
According to Malhotra(2004:314)population is the aggregate of all the
elements that share common set of characteristic and that comprise the
universe for the purpose of the marketing research problem.
2. Sample Technique
According to Sugiyono (2009:116) sample is a part of total number
and characteristic that owned by its population. According to Malhotra
(2004:314) sample is a subgroup of the elements of the population selected
for participation in the study. Element is the object about which or from
which the information is desired (Malhotra, 2004:315).
The sample technique will be used is convenience sampling.
According to Malhotra (2004:321) convenience sampling is a
nonprobability sampling technique that attempts to obtain a sample of
convenient elements. Because, non probability sampling relies on the
personal judgment of the researcher rather than chance to select the sample
elements. The researcher can arbitrarily or consciously decide what
elements to include the sample (Malhotra 2004:320)
The researcher takes 60 samples respondent, because accordingto
Sugiyono (2010:74) guidelines to determining sample are as follows :
a. Sample size should be between 30-500 elements.
b. If the sample is broken down further into sub-sample (Male/Female,
Elementary/Junior/High School, etc.) must be a minimum number of
35
c. In the multivariate research (multiple linear regressions) the sample
sizeshould be several times larger (10 times) than the number of
variables tobe analyzed.
d. A simple experiment for research, with strict controls, sample
sizebetween 10-20 elements.
C. Data Collection Methods
1. Types of Data
According to Kenneth and Jane (2004:8) data is streams of raw facts
representing events occurring in organization or the physical environment
before they have been organized and arranged into a form that people can
understand and use. The types of data used in this research are as follows :
a. Primary Data
According to Malhotra (2004:37) primary data is data originated
by the researcher for the specific purpose of addressing the research
problem. Primary data isthe data obtained directly from the object
under study by research or field research. Primary data is data sources
which is directly gives the data for researcher (Sugiyono, 2009:193).
Primary data was collected through questioner methods. According
to Malhotra (2004:280) questioner is a structured techniques for data
collection that consist of a series of questions, written or verbal, that a
respondent answers. Questioner method is technique data collections
that had been done with give a set of questions or written statement to
the respondent to be answered (Sugiyono, 2009:199). The data will be
36
This study used alikert scale that is consist of five level. Likert scaleis
widely used a rating scale that requires the respondents to indicate
agreement and disagreement with each of a series statement about the
stimulus objects. Typically, each scale item has five response categories,
ranging from “strongly disagree” to “strongly agree” (Maholtra,
2004:258).
Likert scale is to measure attitude, opinion, and perceptions of
individuals or groups social phenomena (Riduwan and Engkos, 2008:20).
Likert scale of five levels to express the attitude or the respondent’s
answer are as follows:
Table 3.1
Likert Scale of Five Levels (Malhotra, 2004:258)
No Range Weight
1 Strongly Agree (SA) 5
2 Agree (A) 4
3 Neutral (N) 3
4 Disagree (D) 2
5 Strongly Disagree (SD) 1
b. Secondary Data
According to Malhotra (2004:37) data is collected for some
purpose other than the problem at hand. Secondary data is source
indirectly give the data for researcher (Sugiyono, 2009:193). In the
development of this study research, technique of taking secondary data
37
1) Library Study, done for collecting the data with information
through reference books, journals, and other information which
suitable according to this study.
2) Notes of Al-Azhar Cooperative such as history company,
organization structure, total of employee, total member, and
product.
D. Data Analysis Methods
1. Descriptive Analysis
According to Istijanto (2009) descriptive study was conducted where
the research is done to provide wider exposure which has a purpose to
change the raw data become easy to comprehended in the form of short
time. The descriptive analysis used to explain general description about the
respondent. This way is done by distributing the 60 questioners to
respondent and then processed with statistical methods using SPPS 17 and
Microsoft Excel.
2. Validity Test
According to Malhotra (2004:269) validity of a scale may be defined
as the extent to which differences in observed scale scores reflect true
differences among objects on the characteristic being measured, rather
than systematic or random error.
According to Ghozali (2005:45) the validity of this research is used to
measure the legality of a questionnaire. Test validity used to measure the
legal valid or un-valid of a questionnaire. In order to determine whether an
38
correlation coefficients test on minimum correlation 0.30, means that an
item is considered valid if the total score is greater that 0.30 (Priyatno,
2010:90)
3. Reliability
According to Malhotra (2004:267) reliability refers to extent which
has a scale produces consistent results if repeated measurements are made
on the characteristic.
According to Sugiyono (2009:456) reliability is often defined as the
consistency and stability of data findings. From a positivistic perspective,
reliability typically is considered to be synonymous with consistency of
data produced by observation made by different researcher at different
times.
Reliability test conducted by researcher is to measure the consistency
of the questions that include in the questionnaire on the variables.
According to Malhotra (2004:268) a questionnaire is considered reliable
when cronbach's alpha test reached 0.6 or more. Cronbach’s alpha is the
average of all possible split half coefficients resulting from different ways
of splitting the scale items (Malhotra, 2004:268).
4. Path Analysis
According to Riduwan and Engkos (2008:2) path analysis model was
used to analyze the patterns of relationships between variables with the aim
to find out directly or indirectly influence the set of independent variables
