THE EFFECT OF QUALITY DIMENSIONS ON CUSTOMER PERCEIVED VALUE, RESTAURANT IMAGE, CUSTOMER SATISFACTION AND BEHAVIORAL INTENTIONS (STUDY ON THE WANG XING RESTO).

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THE EFFECT OF QUALITYDIMENSIONS ONCUSTOMER PERCEIVED VALUE,

RESTAURANTIMAGE, CUSTOMER

SATISFACTIONANDBEHAVIORALINTENTIONS

(STUDY ON THEXING WANG RESTO)

THESIS

To Complete Tasks and Requirements in Order to Achieve a Degree in

Economics

Management Department SebelasMaret University

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ABSTRACT

THE EFFECT OF QUALITY DIMENSIONS ON CUSTOMER PERCEIVED VALUE, RESTAURANT IMAGE, CUSTOMER SATISFACTION AND BEHAVIORAL

INTENTIONS

(STUDY ON THE WANG XING RESTO)

ODYSIUSOCTAVIA RIKA

F0211078

Restaurantbusinessisone of thepromising businessesinIndonesia,

particularlyinthe cityof Solo. This is becauseone of the characteristicsof

Soloidenticalwithculinaryhobbythatcanbe seenwiththe rise ofthe

culinarybusinessinthe cityof Solo, such asopening

GALABOorGladagLangenboganSolo. It is also followed by increasing the number of Chinese food restaurant in Solo.

This studydiscussestheeffectof qualitydimensions oncustomer perceived

value, restaurantimage, customer

satisfactionandbehavioralintentionsconductedinXingWangResto,thenewChinese foodrestaurantandstillneed a lot ofimprovementin them.

In connectionwiththe researchobjectivesandtodeterminewhat needstobe

improvedinXingWangResto, the author analyze byhypothesis testingandanalysisby usingHOQ. Populationsinthis study are allChinese foodrestaurant’s customers,

whilethe samplein this studyis customerswhohavemade a

purchaseatXingWangrestaurantwith a sample sizeof185respondents. The

samplingtechniqueinthisstudy isusingpurposivesampling. Then

testinghypothesesandmaking ofHOQbyusingquestionnaires, interviews,

andobservations.

The resultsofhypothesisanalysis: quality of physicalenvironment and

servicequalityhas not positiveinfluenceonrestaurantimageandcustomer perceived value. Food quality has a positive influence on restaurant image and customer perceived value.Quality of physical environment, food quality, and service quality together have not positive influence on restaurant image. Quality of physical environment, food quality, and service quality together have positive influence on customer perceived value. Restaurantimagehas notpositiveinfluenceoncustomer satisfaction. Restaurant Image has positive influence on customer perceived value.Customer perceived value and halal/haramhavepositiveinfluenceoncustomer satisfaction. Restaurant image and customer perceived value together have positive

influence on customer satisfaction,andcustomer satisfactionhasa

positiveinfluenceonbehavioralintention. The result of analysisHOQ can be

usedforXingWangRestotoimproveperformanceparticularly in relation toits

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Keyword: Quality of Physical Environment, Food Quality, Service Quality,

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MOTTO

God nevergivesproblem more than the power ofHis children.

IbelieveIwas borninthis worldnottobean ordinary person, butIwas born in this

world to completeHis plan are greatandmagical for me.

There is nothing thatshould excessiveregrettable, becauseeverythingis

happenstomakeusbetter.

Neverworryaboutyour future, becauseGodhas setall the bestfor you.

Just do your best for everything!!! And believe, Jesus will make it perfect!!!

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DEDICATIONPAGE

This thesisdedicatespecialfor:

My beloved Father in this world, Jesus Christ.

Thank you for everything Dad.

My lovelyparents, thank youforyour love, prayers,

andsupportarealwaysgiven forme.

My sister..I love youche.

My belovedboyfriend, thanks always love me,

alwaysbe myspirit, and alwayscompletemy life. I

love you o’oh.

My bestfriends, thanks forallbeb.

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Thanks to:

Praise and gratitude the author prayed to Jesus Christ, who always bless, so finally

can finish this thesis. The author is dedicated to:

Jesus Christ to all His blessings to me, so I can complete this thesis.

To my parents, especially my mom ..thanks for everything .. for prayer,

support, love, and patience in the face of all selfishness. Mom, finally I fulfill

my promises..always do my best in every step of my life.

My lovely sister ..che finally, I can catch up you .. thx for your support. Love u

che.

My beloved boyfriend ... o’oh thanks for all your support..finally, nonik can

complete my thesis..thx always patient with all my selfishness when I work

my thesis. I love you o’oh.

My bestfriends Yohana and Ista, finally as we promise ..Graduation together!

Tegar, quickly follow us! Fighting!!!

All my operations management classmates. “Trio Kwek-Kwek”. Aryo and

Amira. Although just three persons, we are actually very compact! Fighting!!!

All of my friends, management 2011 especially Management C, thx all

memories during college, was really impressive!!! Management 2011 is the

best!!!

Solo, March 2015

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PREFACE

Gratitude the author prayed to God the Almighty, who has given the blessing

and grace, so that I can finish the thesis with the title "THE EFFECT OF QUALITY

DIMENSIONS ONCUSTOMER PERCEIVED VALUE, RESTAURANT IMAGE,

CUSTOMER SATISFACTION AND BEHAVIORAL INTENTIONS (STUDY ON THE

WANG XING RESTAURANT). "This thesis as one of the requirements to achieve a

Bachelor of Economics Management Department at Faculty of Economics and

Business, SebelasMaret University Surakarta.

In this moment I would like to express sincere gratitude and appreciation to all

parties who have helped either directly or indirectly, until I can finish my thesis.

Gratitude and sincere appreciation I give to:

1. Dr. WisnuUntoro, MS. as the Dean of the Faculty of Economics and

Business UNS.

2. Dr. Hunik Sri RuningSavitri,MSi. As Chairman of the Department of

Management, Faculty of Economics and Business UNS.

3. Drs. Yong Dirgiatmo, M.Sc. As a thesis supervisor who has a lot of spare

time in order to provide guidance and instruction are very useful in the

preparation of this thesis.

4. YeniFajariyanti SE, MSi. as Academic Advisors who has helped during the

process of studying at the Faculty of Economics and Business UNS.

5. Mr. Ricky Veranata and Ms. YulianaKurniadewi as management Xing Wang

Restaurant.

6. Lecturers at FEB UNS and all employees of the UNS.

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The author recognizethatthere arestillmanyshortageinthis thesis,

thereforeanyfeedback,criticisms, and suggestionswillmakeitmoremeaningful.

Finally,the authorhopes thatthis papercan be useful forall those who need.

Surakarta, March 2015

The Author

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TABLE OF CONTENTS

Page

TITLE PAGE... i

APPROVAL PAGE... ii

ENDORSEMENT PAGE... iii

MOTTO PAGE...iv

DEDICATION PAGE... v

PREFACE...vi

TABLE OF CONTENTS... vii

LIST OF TABLES... xii

LIST OF FIGURES... xiv

ABSTRACT... xv

CHAPTER I INTRODUCTION... 2

A. Research Background... 2

B. Problem Formulation... 5

C. Purpose Study ... 5

D. Research Benefits... 6

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CHAPTER II ANALYSIS REFERENCES... 9

A. Review of Literature ... 9

1. Service ... 9

2. Quality Dimensions... 10

3. Customer Perceived Value ... 16

4. Restaurant Image ... 17

5. Customer Satisfaction ... 18

6. Behavioral Intentions ... 18

7. Halal/Haram ... 20

B. Hypothesis Development ... 21

1. Hypothesis 1... 21

CHAPTER III RESEARCH METHODS... 27

A. Research Design ... 27

B. Population, Sampling, and Sampling Techniques ... 27

1. Population ... 27

2. Sample ... 28

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C. Variable Measurement and Operational Definitions... 29

1. Quality Dimensions... 29

2. Restaurant Image ... 31

3. Customer Perceived Value ... 31

4. Halal/Haram ... 31

5. Customer Satisfaction ... 32

6. Behavioral Intentions ... 32

D. Data Sources ... 33

1. Primer Data ... 33

2. Secondary Data... 33

E. Data Collection Methods ... 33

1. Questionnaire ... 33

2. Direct Observation... 34

3. Interview... 34

F. Methods of data Analysis ... 34

1. Descriptive Analysis ... 34

2. Instruments Research Testing ... 35

3. Hypothesis Test... 36

4. House of Quality... 38

CHAPTER IV DATA ANALYSIS AND DISCUSSION... 41

A. Overview Xing Wang Restaurant ... 41

B. Data Analysis and Discussion ... 43

1. Descriptive Analysis ... 43

a. Characteristic of Respondents ... 44

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2. Instrument Research Testing... 54

a. Validity Test ... 54

b. Reliability Test... 56

3. Hypothesis Test... 57

a. Hypothesis 1a ... 57

b. Hypothesis 1b ... 59

c. Hypothesis 1c ... 60

d. Hypothesis 1d ... 61

e. Hypothesis 2a ... 62

f. Hypothesis 2b ... 64

g. Hypothesis 2c ... 64

h. Hypothesis 2d ... 66

i. Hypothesis 3 ... 67

4. House of Quality Analysis... 73

a. Customer Requirements (CR)... 73

b. Level of Importance Customer Requirements ... 74

c. Technical Requirement (TR) ... 76

d. Relationship Between CR and TR... 80

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g. Analysis Synergy or Conflict in Technical Requirement... 87

CHAPTER V CONCLUSION AND RECOMMENDATION... 90

A. Conclusions ... 90

B. Research Limitations... 92

C. Suggestions ... 92

REFERENCES... 94

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LIST OF TABLE

Table Page

IV.1Descriptionof Respondents byFrequency ofVisit ... 44

IV.2Description ofRespondents byGender ... 44

IV.3Descriptionof Respondents byAge ... 45

IV.4Description ofRespondents byEducation Level... 45

IV.5Descriptionof Respondents byIncome Level... 46

IV.6 Respondent’s Response about Quality of Physical Environment... 47

IV.7 Respondent’s Response about Food Quality... 48

IV.8 Respondent’s Response about Service Quality ... 49

IV.9 Respondent’s Response about Restaurant Image... 50

IV.10 Respondent’s Response about Customer Perceived Value... 51

IV.11 Respondent’s Response about Halal/Haram Product... 52

IV.12 Respondent’s Response about Customer Satisfaction ... 53

IV.13 Respondent’s Response about Behavioral Intentions... 54

IV.14 Result of Validity Test... 55

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IV.16 Result of Hypothesis 1a... 58

IV.17 Result of Hypothesis 1b... 59

IV.18 Result of Hypothesis 1c... 60

IV.19 Result of Hypothesis 1d... 61

IV.20 Result of Hypothesis 2a... 63

IV.21 Result of Hypothesis 2b... 64

IV.22 Result of Hypothesis 2c... 65

IV.23 Result of Hypothesis 2d... 66

IV.24 Result of Hypothesis 3... 67

IV.30 Customer Requirement ... 73

IV.31 Level of Importance Customer Requirement ... 75

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LIST OF FIGURE

Figure Page

I.1 Research Framework ... 7

II.1 Framework... 15

II.2 Research Framework ... 21

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APPENDIX

Appendix 1 Research Certificate

Appendix 2 Raw Data of Questionnaire

Appendix 3 Validity and Reliability Quality of Physical Environment

Appendix 4 Validity and Reliability Food Quality

Appendix 5 Validity and Reliability Service Quality

Appendix 6 Validity and Reliability Restaurant Image

Appendix 7 Validity and Reliability Customer Perceived Value

Appendix 8 Validity and Reliability Halal/Haram

Appendix 9 Validity and Reliability Customer Satisfaction

Appendix 10 Validity and Reliability Behavioral Intentions

Appendix 11 Result of Hypothesis 1A

Appendix 12 Result of Hypothesis 1B

Appendix 13 Result of Hypothesis 1C

Appendix 15 Result of Hypothesis 2A

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Appendix 18 Result of Hypothesis 2D

Appendix 19 Result of Hypothesis 3

Appendix 25 Instrument Matrix

Appendix 26 Instrument HOQ