1
CHAPTER I
INTRODUCTION
1.1 Background
Modern convenience store or often called the c-store is a small store that provides daily needs with safe and comfortable store facilities. This kind of the store starts to be popular in Indonesia especially among adolescents. This is caused by the increasing number of the needs that follows the improved number of modern convenience store. Although the products and services in a modern convenience storeare not as complete as in the supermarket or hypermarket, its existence cannot just be underestimated. Modern convenience store has become a part of the communities when they need daily goods especially when their time is limited.
One of the benefits from this industry is the industry can be describedas the tough industry indeed. Even though the economic situation looks difficult for recent years, it does notaffect the purchasing power of this sector. Furthermore, the adolescents in Indonesia are likely to have a practical shopping pattern and theyemphasize on convenience facilities.On the other side of this localized experiences are convenience store incorporating other elements to transcend their own brand. That means the new world of convenience often requires a quick service of transportation and electricity payment inside the store along with a branded banking ATM. It leads to the shopping habits at the modern convenience store where this type of 1.1 Backgrgroound
Modern ccononveeniencee sstotorre orr ooftfenen ccalalleled d tht e c-store isis a small store
that proovividedes sdaily neededss with safe and coi omfmforo table storore e fafacilities. ThT is kind
of
o tthehe ssttore sstatarts to be popular in Indonesia especiaiallly ammonong g ada olesccents.
Th
This is caused by the increasing number of the needss that t fofollllows ththe
im
i prrooved number of modern convenience store. Although thhe e prododucucts andd
serrvices in a modern convenience storeare not as completete as s inin thehe
suupermarket or hypermarket, its existence cannot just be undeerestimaattedd. M
Modern convenience store has become a part of the communitiess whwhen theheyy
need daily goods especiallly whwhene theheirir ttiime is limited.
One of the benefits from this industry is the industryy canan bbe
de
descscriribebedadass ththe e totougughh ininduduststryry indeeeed.d. EEveven n ththououghgh tthehe eecocononomimicc sisitutuaation
lookokss didifffficiculult foforr recent yeaears, it does nnotaffect ththee ppurrchchasasining g popowewer of this
sector. Furthermore, the adollescents innIndonesia are likely to have a practical
shopping pattern and theyemmphasize oon convenience facilities.On the other
side of this localized experiennces arree convenience store incorporating other
2
storeclearly provides a range of items used in daily necessities with a good level of facilities.
Some adolescents mention that theywilling to pay more for goods in amodern convenience store instead of buying in a regular convenience store. This is caused by their higher level of trust-wothy towards the reputation of modern convenience store rather thantrust-worthy towards regular convenience store. Moreover, it is safer and and more comfortable. Convenience stores have to localize and adapt to the unique characteristics of their communities, they will also have to attach themselves to national and global brands that people from every neighborhood have come to expect as part of their dining and shopping experience.The major reason for modern convenience store is needed by people because the time consumption pattern changes. It means there are more people needs everything in a quick ways now. Moreover, it becomes an important issue for modern convenience store to serve their customer nicely. The customer’sloyalty is extremely necessary and need to be fulfilled in case of long term existence for a modern convenience store itself.
In addition, the reason for adolescents that made them do repetition to come to modern convenience stores is that they can sit there for a long time because the c-store provides seats and tables like in cafes. Automatically, it makes adolescents buy some goods or using the services in the modern convenience store while hanging out with their friends by means to just relax on that spot which has been provided with complete facilities as well as the Some adolescentss mmention that t ththeyeywilling to pay more for goods in
amodern conveneniience store instead of buying in a reregug lar convenience store. This is cacaused by their highgherr leleveell ofof truusts-wothy towardds s the reputation of
mooddern convennieiencnce e store rather ththanantrtrusustt-wworthy towarards regular
convenenieiencncee storee. MMoreover, it is safer anand andd momorer comfmfortable.
C
Cononvevenniencece stores have to localize and adapt to the unniqique chahararactctere isticcs of
th
theeir cocommunities, they will also have to attach themselvees s to nnatatioional annd
globbal brands that people from every neighborhood have comeme to exexpepectc as
paarrt of their dining and shopping experience.The major reasonn for moderernnn
coonvenience store is needed by people because the time consumpption papatternn
ch
chana ges. It meaansns ttheherere aarer more peopplele nneeeedsds eevev rything in aa qquuick wawaysys
now. Moreover, it becomes an imimpoportant issue for modern conveniencee sstotorre
to
to serve their customer nicely. The customer’sloyalty is extremeelyly nececesessasary
and needd tto bebe ffululfifilled iinn cacasese ooff llong ttererm m exe iisttence ffor a a momodern co
convn enienccee ststore itself.
In addition, the reasoon for adoleescents that made them do repetition to
come to modern conveniencee stores iss that they can sit there for a long time
because the c-store provides seeats aand tables like in cafes. Automatically, it
3
Wi-Fi connection. It is realized to be the force for the new lifestyle of adolescents. In Indonesia, some modernconvenience stores operatesfor 24 hours. To name some areIndomaretPoint and Circle K. Some convenience stores also impose a 24-hour service, so that the customer can reach them whenever they need. Of course, this will be very different from the services at the regular convenience stores.
From year to year, the growth of modern convenience store seems higher than regular one. The problem is that they provide promisinginvestment; flexible location and the franchise growth can be developed by everyone. However, there are few people perceived that modern convenience store brings negative impacts. Some owners of regular convenience stores that sell daily needs also feel threatened for the existence of modern convenience store. Most of them have a fear that their goods could not sell well because customer tend to move to modern convenience store. Based on that issue, the government must have discourse to limit the number of modern convenience stores in Indonesia. Nevertheless it does not discourage customer especially for the adolescents to stop buying the daily needs at a modern convenience store.
Based on the explanation above, the researcherinterested to do a research.It is about how customer especially adolescents will perceive the existence of modern convenience store. The research setswith the title of:“The Effects of Modern Convenience Store Attributes to Buytowards
Customer’s Loyalty (Case of Indomaret).”
hours. To name some arareIeIndomaretPoind intt and Circle K. Some convenience
stores also impopose a 24-hour service, so that the cucustomer can reach them
whenevverer they need. Of couursse,e tthiis s wiwillllbe e very differentffrorom the services at
thee regular convenenieiencnce stores.
Fr
Fromom year toto year, the growth of mododerern convnvenenieiencn e storre e seems
hi
highgherer thahan regular one. The problem is tthat ththeyey proovivde
p
prroomissininginvestment; flexible location and the franchise e growwthth can bbe
deveeloped by everyone. However, there are few people perceiveed thhatat momodern
coonnvenience store brings negative impacts. Some owners of regulalar
coonvenience stores that selldaily needs also feel threatened for thhe exissttence
of
of modern conveeninienencecesstotorer . Most of thhemem hahaveveaa fear that theirggooods cououldld
not sell well because customerr ttennd d to move to modern convenience ststooree.
Ba
Based on that issue, the government must have discourse to limitttthhe nnumumbber
of modern cod onvnvenenieience ststororeses iinn InInddonesiaia. NNeverththelless it ddoeoess not
di
discscouragege ccuustomer especialallyl for thhee adolescents toto sstotop p buyiyingng the daily
needs at a modern conveniennce store.
Based on the explannation aboove, the researcherinterested to do a
research.It is about how custommer eespecially adolescents will perceive the
4 1.2 Research Problem
Based on the background, the writer tries to identify some problems that may rise up as follows:
a. What factors are formed by the attributes from Indomaret based on customers’ perception?
b. Do the factors of attributes fromIndomaret positively affect the customer’sloyalty?
c. Do male and female will perceive the attributes from Indomaret differently?
d. Do male and female will purchasing the products from Indomaret differently?
e. Do male and female will using the services from Indomaret differently?
f. Do male and female will perceived the customer’s loyalty of Indomaret differently?
1.3 Research Objectives
Based on the problem formulation above, the objectives that need to be reached are:
a. To know what are the factors that can be formed by the attributes from Indomaret based on customers’ perception.
b. To know how variables on attributes fromIndomaret positively affect the customer’sloyalty.
problems that may riseeuupp as follows::
a. What facactotors are formed by the attributes frfrom Indomaret based on
cu
customers’ perceptioonn?
b
b. Do the fafactctororss of attributes fromff mInIndodomamaret positivelyly affect the
cu
custsomomer’sloloyyalty?
c.
c DDo mmale and female will perceive the attribubutes frfromom IIndn ommaret
d
differently?
d.
d. Do male and female will purchasing the products froom IIndndomomaret
differently?
e. Do male and female will using the services from Indommareet
differently?y?
f. Do male and female willll ppercrceieived the customer’s loyalty of Indoomamareret
differently?
1.
133ReR searchchOObjectives
Based on the problemm formulatiion above, the objectives that need to
be reached are:
a. To know what are the facctorssthat can be formed by the attributes from
5
c. To find outthat the male and female will perceive the attributes from Indomaret differently.
d. To find out that the male and female will purchasing the products fromIndomaret differently.
e. To find out that the male and female will using the services fromIndomaret differently.
f. To find out that the male and female will perceived the customer’s loyalty of Indomaret differently.
1.4 Research Benefits
1.4.1 Benefit for readers
This reserach is done to know the reasons and effects on consumer while they perceive the modern convenience store phenomenon which usually happen among adolescents who stay in a boarding house.
1.4.2 Benefit for researcher
This research can be a media to add some knowledge in the theory applied whichare already received from some lectures.Another benefit is to reveal how far the appropriateness between existing theory and the reality is.
d. To find out that tthehe male and d fefemam le will purchasing the products
fromIndodommaret differently.
e. ToTo find out that tthee mmalale e anand female will ususing the services
fromIndomamareret t differently.
f. ToTo ffinind out t ththat the male and female wiwill perceceiviveded the cusstot mer’s
l
loyaltlty of Indomaret differently.
1
1.4 RResearch Benefits
1.4.1 Benefit for readers
This reserach is done to know the reasons and effectsoon conssuumeer
while they ppererceceivivee ththe e modern connveveninienencece store phenommenenon whihichch
usually happen among adollesescec ntnts who stay in a boarding house.
1.44.22 BBeneefifit t fofor researarchcherer Th
Thisis research can beb a medidia to add someknknowowledgegeinin thetheory y
applied whichare alreadyy received ffrom some lectures.Another benefit is
to reveal how far the appprp opriatenness between existing theory and the
6 1.4.3 Benefit for further researcher
This research is expected to be used as the material for further researchers who want to do a research related to the attributes from convenience store that may affectadolescents’ willingness and loyalty to purchase products and using services in a modern convenience store.
1.5 Systematic of Writing
1.5.1 Chapter 1: Introduction
In this chapter, the researcher tries to describe the reason of choosing the topics, research problem, objectives and benefits of the research, also systematics of writing.
1.5.2 Chapter 2: Literature Review
In this chapter, the researcher tries to describe the framework and theories based on the problem that can be used in this research related to the topics.
1.5.3 Chapter 3: Research Methodology
In this chapter, the researcher tries to describe about the research methodology, measuring the instrument testing, and analysis tools to be used in the data collection.
researchers who wantnt tto do a reseaearcrch related to the attributes from
conveniencee ststore that may affectadolescents’ wiwllingness and loyalty to
purchahase products and ususinnggses rvrviciceses in n aa modern convenenience store.
1.5 Syststemematatic of WrWrititing 1.
1.5.5.11 ChChapter 1: Introduction
In this chapter, the researcher tries to describebe thee rereason oof
ch
choosing the topics, research problem, objectives and bebenefifitsts ofof the
research, alsosystematics of writing.
1.5.2 Chapapteterr 2:2:LLititererature Revieww
In this chapter, the rereses ararchcher tries to describe the frameworrkk anandd
theories based on the problem that can be used in this researcrchh reelalateed d to
thhe ttopics.i
1.5.3 Chapter 3: Reseaarch Methoodology
In this chapter, thee researchher tries to describe about the research
methodology, measuring thhee inststrument testing, and analysis tools to be
7 1.5.4 Chapter 4: Data Analysis
This chapter provides someanalyses of the calculation and construction of major components and their support. Later, the calculation results will be interpreted and adjusted to the topic.
1.5.5 Chapter 5: Conclusions and Recommendations
This chapter is a last chapter for the whole chapters contained in this final writing. In this chapter, there are also the conclusions and suggestions from the topic which will be referred for further developments.
construction of major cocomponents andndttheir support. Later, the calculation
results will bbee interpreted and adjusted to the topipic.c
1
1.5.5 Chapteter r5:5: Conclusions and RRececomommemenndations Th
This chaaptpter is a last chapter for ththee whw ole chchapapteters conttaianed in
th
thisis finalal writing. In this chapter, there are also the cononclclususions and
suggggestions from the topic which will be referrrer d fforfffor furtheher
de
