The Analysis of Customer Satisfaction in 'House of LIN' Bandung With Importance-Performance Analysis.

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Maranatha Christian University i

ABSTRACT

Saat ini, banyak industri jasa berkembang di Indonesia, salah satunya adalah jasa salon. Pihak salon perlu memberikan kualitas pelayanan yang terbaik agar tercipta kepuasan pelanggan, sehingga mereka dapat bersaing dengan para pesaing lainnya. Dengan berkembangnya bisnis salon, maka saya tertarik untuk meneliti mengenai kualitas jasa House of LIN Bandung. Penelitian ini bertujuan untuk menemukan persentase pelanggan yang merasa puas dan mengetahui tindakan yang perlu dilakukan House of LIN berdasarkan penilaian pelanggan terhadap berbagai elemen dari kumpulan jasa House of LIN.

Penelitian ini dilakukan dengan menyebarkan kuesioner kepada 100 orang responden yang sedang mengkonsumsi jasa House of LIN. Karakteristik individu yang digunakan antara lain: jenis kelamin, usia, pekerjaan, asal tempat tinggal, dan frekuensi mengkonsumsi jasa House of LIN. Metode pengumpulan data yang digunakan adalah metode survey. Sedangkan metode analisis data yang digunakan adalah importance-performance analysis yang didukung oleh pengukuran rata-rata (mean descriptive statistic measurement). Variabel operasional dalam penelitian ini didasarkan pada penelitian Parasuraman, Zeithaml, dan Berry yaitu kualitas pelayanan, sedangkan sub variabel yang digunakan yaitu: keandalan, daya tanggap, kepastian, empati, dan berwujud (dikutip dari Kotler 440).

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TABLE OF CONTENT

Page

ABSTRACT ... i

DECLARATION OF ORIGINALITY ... ii

PUBLICATION APPROVAL PAGE ... iv

PREFACE ... vi

CHAPTER II THEORETICAL REVIEW 2.1 Service Comprehension ... 6

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Method ... 13

CHAPTER III FINDINGS AND DISCUSSION OF THE STUDY 3.1 Respondents Characteristic ... 16

3.1.1 Respondents Characteristic Based On Gender ... 17

3.1.2 Respondents Characteristic Based On Domicile ... 17

3.1.3 Respondents Characteristic Based On Occupation ... 18

3.1.4 Respondents Characteristic Based On Age ... 19

3.1.5 Respondents Frequency in Consume Service Given by House of LIN ... 20

3.2 Customer Satisfaction Analysis ... 21

3.3 Means Importance-Performance Analysis ... 22

3.4 Discussion ... 24

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LIST OF TABLES

Page

Table 3.1 Respondents’ Characteristics Based on Gender ... 17

Table 3.2 Respondents’ Characteristics Based on Domicile ... 17

Table 3.3 Respondents’ Characteristics Based on Occupation ... 18

Table 3.4 Respondents’ Characteristics Based on Age ... 19

Table 3.5 Respondents’ Frequency to Consume Service Given by House of LIN ... 20

Table 3.6 Customer Satisfaction Analysis ... 21

Table 3.7 Mean Importance Analysis ... 23

Table 3.8 Mean Performance Analysis ... 24

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LIST OF FIGURES

Page

Figure 2.1 Importance-Performance Analysis Map ... 14

Figure 3.1 Importance-Performance Map Based on Means of Direct

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LIST OF APPENDIX

Appendix 1 Research confirmation from the owner of House of LIN

Appendix 2 Questionnaire Format

Appendix 3 SPSS Calculation: Gender, Domicile, Occupation, Age,

Frequency

Appendix 4 SPSS Calculation: Descriptive Statistic Importance-

Performance

Appendix 5 SPSS Calculation: Customer Satisfaction Analysis

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Maranatha Christian University 1

CHAPTER I

INTRODUCTION

1.1 Background of the Study

Service quality is one of the service company strategies(Kotler 91) which creates a long term beneficial relationship between

customers and the companies (Tjiptono 115). When a company is

able to deliver good service quality to its customer, customer

satisfaction will be established (Gerson qtd. in Arief 169). If

customers feel satisfied, they will be loyal both to their selection and

the company.

Beside that, Kotler says that eventhough a company already has

loyal customers,it still needs to satisfy its loyal customers to prevent

them from switching to the competitors. If they switch to the

competitors, it will be hard for the company to attract new customers,

especially in terms of costs (49). Lele, qtd. in Arief says customer

loyalty will make the company win the competition so in the long term

the company can increase its benefit (213). Thus, it can be

concluded that service companies need to give attention to the

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satisfaction will create a beneficial long term effect to the companies,

which is customer loyalty.

Since service quality and customers’ satisfaction are important,

it is advisable for a company to measure customer satisfaction

regularly (Kotler 48). One of the ways to measure customer

satisfaction is by using service quality dimensions or SERVQUAL

(Parasuraman, et al. qtd. in Tjiptono and Chandra 145). A

SERVQUAL dimension is an evaluation of a measure differentiation

between the value given by customer for each statement in relation

with expectation and performance. This operation is formulated in:

SERVQUAL score = performance score – expectation score

(Zeithaml, et al., qtd. in Tjiptono, Chandra 157).

Based on the criteria, Parasuraman, et al. determine the

percentage of satisfied customers to the services given by the service

company. If the service performance is below the customers’

expectation they will feel upset or dissatisfied. In contrast, if the

service performance meets or is higher than the customers’

expectation, they will be satisfied (qtd. in Tjiptono, Chandra 157).

Moreover, Parasuraman, et al. say that there are five dimensions

which can be used by customers to evaluate service quality: reliability,

responsiveness, assurance, empathy and tangibility (qtd. in Kotler

440). Parasuraman, et al. explain that reliability is used to evaluate

the performance and dependability of a company; responsiveness is

used to evaluate employees readiness to offer the service needed by

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good manners, and their ability to create customers’ trust; empathy is

used to evaluate company’s attention to understand customers’

problems; and tangibility is used to evaluate the physical appearance

of the company (qtd. in Tjiptono 134).

In this research the object is a salon because nowadays, a

competition in salon business in Bandung is getting tighter. New

salons are established both for middle up class and lower class

people. There are new salons opened, because salon is a business

with a good prospect (Idris et al. 1). The observation takes place in

House of LIN which is located at Jl. Jenderal Sudirman No 818

Bandung. I choose House of LIN as an object to observe because

according to the owner, Tan Hay Lin, the number of customers who

visit House of LIN increases from 1984 to 2008 (see Appendix 1).

Beside that, their old customers are loyal to use the service given by

House of LIN although many new salons are appearing. Therefore, it

can be concluded that service quality, which is a strategy to satisfy

customers, has already been applied by House of LIN to maintain its

loyal customers. Based on those facts, I am interested to observe the

service quality performed by House of LIN to make their customers

feel satisfied and stay loyal to use the service given by House of LIN.

Based on the explanation the importance of service quality and

customer satisfaction, I am interested in doing a research in a salon.

The title for the research is: “The analysis of customer satisfaction in

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1.2 Identification of the Case

Based on the background, there are three cases that I am going to

analyze:

1. What is the percentage of satisfied customers?

2. What is the rate of various elements of House of LIN service quality by customers through importance-performance analysis?

3. What are the actions that House of LIN should take after they find out the rate of the various elements of service quality (concentrate

here, keep up the good work, possible over kill, low priority)?

1.3 Objectives of the Study

The objectives of this research are:

1. To know the percentage of satisfied customers.

2. To analyzethe rate from each element of House of LIN service quality through importance-performance analysis.

3. To suggest the actions required by House of LIN after they find out the rate of the various elements of service quality (concentrate

here, keep up the good work, possible over kill, low priority).

1.4 Limitation of the Study

I would like to focus my discussion on elements to measure

service quality (tangibility, assurance, empathy, responsiveness, and

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with the salons. I do some interviews and observations, also

distribute questionnaires to collect data that support my research.

1.5 Layout of the Thesis

This thesis starts with the Abstract, a concise summary of the

entire paper in Indonesian. This abstract is followed by the Preface,

in which acknowledgements are given to those contributing and

involving in the work. After that is the Table of Contents and the

Appendices, followed by its four chapters: Chapter I, Introduction to

the study consisting: Background of the Study, Identification of the

Case, Objectives of the Study, Limitation of the Study, and Layout of

the Thesis.

Chapter II, Theoretical Review, contains basic theories or

concepts related to the Case Study. Chapter III, Findings and

Discussion of the study, includes ways of collecting data, information

or data gathered and discussion of important findings. Chapter IV,

Conclusion, has a major statement that is made along with some

suggestions or implication for further study. Following the Conclusion

is Bibliography, where the references used for the study are

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CHAPTER IV

CONCLUSION AND SUGGESTIONS

4.1 Conclusion

This research analyzes about the percentage of satisfied

customers in House of LIN and the rate from each elements of House

of LIN service quality. Through this research it can be known whether

the service given by House of LIN is already equal with or higher than

what customers expect and in the end it can satisfy customers.

Based on the result of the analysis, House of LIN can know what

aspects need to be improved, maintained, reduced, and possibly over

killed to support its business.

This research focuses on House of LIN customers and takes the

sample of 100 respondents who are consuming House of LIN

services. The indicators used are from the research of Parasuraman,

Zeihaml, and Berry, which is adopted by Kotler about service quality

attributes: reliability, responsiveness, assurance, empathy, and

tangibility. The data analysis method used is importance-performance

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Based on the result, 5% of House of LIN customers feel

dissatisfied, 6% of House of LIN customers feel satisfied, and 89% of

House of LIN customers feel very satisfied. Therefore, it can be

concluded that each House of LIN service quality attribute is located

in quadrant A, B, C, and D. Quadrant A (concentrate here) is a

quadrant that explain the service quality attributes that House of LIN

need to improve. The indicator numbers are: modern facility (point 1),

attractive physical facilities (point 2), employees’ tidiness (point 3),

employees’ knowledge to answer customers’ questions (point 17)

and understand customers’ specific needs (point 22).

Quadrant B (keep up the good work) is a quadrant that explains

the good service quality that House of LIN needs to maintain. The

indicator numbers are: give an accurate service (point 7), employees

willing to give the accurate of information services (point 10),

employees willing to give quick service (point 11), help customer’s

problems and requests (point 12) although they are busy (point 13),

employees’ behavior that make customers trust them (point 14), and

employee smile and speak politely (point 16).

Quadrant C (low priority) is a quadrant that explains House of LIN

should put aside each service quality attribute. The indicator numbers

are: service information; brochure; look interesting (point 4), safety in

doing a transaction with House of LIN (point 15), House of LIN gives

individual attention (point 18) and employees give customers

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is convenient (point 19), and House of LIN gives priority to customers’

importance (point 21).

Quadrant D (possible overkill) is a quadrant that explains the

service quality attributes that House of LIN need to reduce. The

indicator numbers are: House of LIN do a prompt service (point 5)

and willing to provide its services at the time it promises to do so

(point 8), House of LIN shows a sincere interest in solving your

problem (point 6), and House of LIN insists on error-free records

(point 9).

4.2 Research Limitation

This research is done by taking a salon in Bandung randomly

because of the time limitation. House of LIN is chosen because it is

because House of LIN is a salon in Bandung which has existed for

quite a long time and also the owner permits me to do a research

about the service quality performed by House of LIN to its customers.

4.3 Suggestions

4.3.1 For the Company

Based on the explanation from my research and my conclusion

there are two suggestions that I can offer. First, if House of LIN wants

to satisfy its customers, it needs to maintain good service elements in

quadrant B. Then if House of LIN wants to improve the customer

satisfaction and prevent its loyal customers from switching to the

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service quality elements in quadrant A then maintain the good service

quality in quadrant B. Next, if House of LIN wants to equip the

switching barriers it needs to improve the service quality elements in

quadrant A then maintain good service quality in quadrant B. Then it

can do service quality elements in quadrant C. Later, to minimize

unnecessary costs and efforts, House of LIN can omit the service

quality elements in quadrant D.

Secondly, as the operational suggestion, House of LIN should add

the number of employees and equipments for example: hair wash

vessels, tables, chairs and hair dryers so the customers can be

served faster. The colour of the employees’ uniform should be

different from day to day to make the employees fresher. Moreover,

House of LIN needs to improve the skills of each employees in using

guidelines and also to provide training. House of LIN should follow

the development of the needs and expectations from every customer.

4.3.2 For the next research

It would be better for the next research to do a pre-survey first to

know the level of brand awareness from customers about service

company brand especially salon. The objective of this pre-survey is to

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Maranatha Christian University

BIBLIOGRAPHY

BOOKS:

Arief, Muhtosim. Pemasaran Jasa dan Kualitas Pelayanan. Malang:

Bayumedia Publishing, 2006.

Cooper, Donald R., and Pamela S. Schindler. Business Research Method.

6th ed. Singapore: McGraw-Hill, 1998.

Dictionary of Contemporary English. Longman, 2001.

Kotler, Philip. Marketing Management. New Jersey: Prentice-Hall, Inc.,

2000.

Musselman, Vernon A., and John H. Jackson. Pengantar Ekonomi

Perusahaan. 9th ed. Jakarta: Erlangga, 1996.

Sekaran, Uma. Research Methods for Business (A Still-Building Approach).

3rd ed. New York: John Wiley & Sons, Inc., 2000.

Sugiyono, Prof. Dr. Statistika untuk Penelitian. Bandung: CV Alfabeta,

2005.

Tjiptono, Fandy, Yanto Chandra, and Anastasia Diana. Marketing Scales.

Yogyakarta: ANDI, 2004.

Tjiptono, Fandy, and Gregorius Chandra. Service, Quality, and

Satisfaction. Yogyakarta: ANDI, 2005.

Tjiptono, Fandy. Perspektif Manajemen dan Pemasaran Kontemporer.

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Maranatha Christian University Zeithaml, Valarie A., A. Parasuraman, and Leonard L. Berry. Delivery

Quality Service: Balancing Customer Perceptions Expectations. New

York: The Free Press, 1990.

ELECTRONIC PUBLICATIONS:

Idris, Omar, et al. “Peruntungan Membisniskan Stres.” Kontan No. 6,

Tahun X. 7 November 2005 <www.kontan_online.com>.

“Jasa.” Wikipedia Indonesia: Ensiklopedia Bebas Berbahasa Indonesia.

11 Februari 2008. <http://id.wikipedia.org/wiki/Jasa>.

“Online Dictionary.” Dictionary: WordNet. 2008.