Investigating the Moderating Effect of Hospital Public Image on Loyalty

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Series:

Advances in Economics, Business and Management Research

Proceedings of the 1st Economics and

Business International Conference 2017

(EBIC 2017)

Chair



Dr. Rina Bukit, SE, M.Si, Ak

USU, Medan Indonesia

Co-Chair



Dr. Elisabeth Siahaan, SE, M.Ec

USU, Medan Indonesia

Honorary Board



Prof. Dr. Runtung Sitepu, SH, M.Hum

USU, Medan Indonesia



Drs. Mahyuddin K.M. Nasution, M.I.T.Phd

USU, Medan Indonesia



Prof. Dr. Ramli, SE, MS

USU, Medan Indonesia



Prof. Dr. Prihatin Lumbanraja, SE, M.Si

USU, Medan Indonesia



Dr. Arlina Nurbaity Lubis, SE, MBA

USU, Medan Indonesia



Drs. Hasan Sakti Siregar, M.Si, Ak

USU, Medan Indonesia

Secretary



Yasmin Chairunnisa Muchtar, SP, MBA

USU, Medan Indonesia



Inneke Qamariah, SE, M.Si

USU, Medan Indonesia

Treasurer



Dra Nurzaimah, MM, Ak

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Technical Committee



Dr. Yeni Absah, SE, M.Si

USU, Medan Indonesia



Dr. Endang Sulistya Rini, SE, M.Si

USU, Medan Indonesia



Beby Kendida Hasibuan, SE, M.Si

USU, Medan Indonesia



Dr. Khaira Amalia Fahrudin, SE, MBA

USU, Medan Indonesia



Aisyah, SE, M.Si

USU, Medan Indonesia



Drs. Coki Ahmad Syahwier HSB, MP

USU, Medan Indonesia



Dra. Marhayanie, M.Si

USU, Medan Indonesia



Drs. Syahrul Rambe, MM, Ak

USU, Medan Indonesia



Yulinda, SE, M.Si

USU, Medan Indonesia



Inggrita Gusti Sari Nasution, SE, M.Si

USU, Medan Indonesia

Secretariat



Ishbir Mujahid Adha, SE, M.Si

USU, Medan Indonesia



Dani Ramadani

USU, Medan Indonesia

Editorial Board



Assoc. Prof. Dr. Zuraidah Mohd. Sanusi

UiTM Shah Alam, Malaysia



Prof. Dr. Ritha F. Dalimunthe, SE, M.Si

USU, Medan Indonesia



Prof. Dr. Wilson Cordova

Kai Sek College, Philippines



Prof. Dr. Azhar Maksum, SE, M.Ec, Ak, CA

USU, Medan Indonesia



Prof. Dr. Ade Fatma Lubis, MAFIS, MBA, Ak

USU, Medan Indonesia



Prof. Dr. Erlina M.Si, Ph.D, Ak

USU, Medan Indonesia



Dr. Iskandar Muda, SE, M.Si, Ak

USU, Medan Indonesia



Dr. Jantima Banjongprasert

Silpakorn University International College, Thailand



Wahyu Ario Pratomo, SE, M.Ec

USU, Medan Indonesia

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International University of Japan, Japan



Dr. Isfenti Sadalia, SE, ME

USU, Medan Indonesia



Dr. Murni Daulay, M.Si

USU, Medan Indonesia



Prof. Wen kai Li

International University of Japan, Japan



Erlinda Nusron Yunus, Ph.D

PPM School Of Management, Indonesia



Arta Moro Sundjaja, SE, S.Kom, MM

Bina Nusantara, Jakarta, Indonesia



Dr. Nurulnadwan Aziz

UiTM Terengganu, Malaysia



Prof. Dr. Paham Ginting, MP

USU, Medan Indonesia



Dr. Rosman Mahmud

UiTM Terengganu, Malaysia



Assoc Prof. Dr. Baharom Ab Rahman

UiTM Terengganu Malaysia



Elvia R Shauki, Ph.D

University of South Australia, Australia



Assoc Prof. Dr. Abdol Samad Nawi

UiTM Terenggannu, Malaysia



Dr. Dedhy Sulistiawan

Universitas Surabaya, Surabaya Indonesia



Prof. Dr. Armanu Thayib

Universitas Brawijaya, Malang Indonesia



Dr. Fathyah Hashim

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The Effect of Halal Destination Image and Visitors Satisfaction on

Tourist Loyalty (Object In Bukit Tinggi City Of West Sumatera)

Elfitra Desy Surya, Endang Sulistia Rini, Nasrudin Setiawan

This research aims to clarify: the influence image of halal destinations variable and to tourist satisfaction variable Against tourist loyaltyin Bukit Tinggi city. This research uses quantitative approach with explanatory research. This research uses three variables: tourist satisfaction, image of halal...

details download PDF

A Review of Government Interventions Promoting Smallholder

Development in Indonesia

Zahari Zen, Tapi Rondang Nibulan

Oil palm against a background of widespread poverty in the outer islands, where a large, very poor rural population that was not technically conversant with high input agriculture lived side by side with a prosperous commercial estate plantation sector. While many smallholders in these regions cultivated...

Analysis of Human Development Index: Concept and Factors that

Influence North Sumatera Province

Eko Wahyu Nugrahadi, Muammar Rinaldi

In 2010 the United Nations Development Program (UNDP) re-issued a new version by changing the methodology of calculating the Human Development Index (HDI) from Adult Literacy Rate (ALR) to Expected Year of Schooling (EYS). This improvement is expected to be able one of important indicators in the effort...

Analysis The Determination of The Stability of Exchange Rates In

Indonesia

Ayu Putri Sumada Br.Ginting, Dede Ruslan, Mrs Fitrawaty

The exchange rate is the value of the currency of a country with the value of the currency of other countries, which used to make the international trade. This study aims to analyze the effect of BI Rate, money supply, inflation, foreign exchange tourism, exports and imports on the exchange rate in Indonesia....

The Effect of Social and Legal Environments Toward Welfare

with Economic Expennditures as Intervening Variables

Agus Tripriyono, Sirojuzilam Mr, Mrs Erlina, Agus Purwoko

This study aims to examine the influence of the social environment and the legal environment on the welfare of society with economic expenditure as a mediator. The independent variables of this research are the social environment and the legal environment and its dependent variables are community welfare...

Forensic Accounting on Corporate Governance Maturity

mediated by Internal Audit: A Conceptual Overview

Ali Rehman, Fathyah Hashim

Identification and development of forensic accounting as an organization's essential intangible asset has been traced as an immense vital essence that can influence corporate governance maturity. This paper attempts to integrate relevant empirical research and literature to extend the intended potentials...

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The Factors Which Influence Accounting Students

Understanding with Spiritual Intelligence as Moderating Variable

(An Empirical Study on the student of USU, UNIMED, and

UINSU)

Khanti Listya, Idhar Yahya, Erwin Abu Bakar

The objective of the research was to analyze the factors influencing accounting students to understand accounting with spiritual quotient as the moderating variable (an empirical study on Students of University of Sumatera Utara (USU), State University of Medan (UNIMED), and State Islamic University...

The Factors of The Infuence on Audit Quality at The Inspectorate

General of Ministry of Environment and Foresty

Yasinta Pritama, Tavi Supriana, Zainul Bahri Torong

The objective of the research was to analyze an Influence of expertise, independency, due professional care, time pressure, budget pressure, audit planning, and audit supervision on audit quality at the Inspectorate General of Ministry of Environment and Forestry. The population of this research is government...

Variaton of Industrial Type Contributions on Working

Performance

Ratna Balqis Nasution, Iskandar Muda, Mrs Erlina, Hasan Sakti Siregar, Setareh Katircioglu

The purpose of this research is to see the influence of variation and types of large and medium industries in North Sumatera on the Absorption of the Labor force in North Sumatera Province. The type of research is descriptive quantitative. The data used are secondary data sourced from Statistics Agency...

Institutional Fishermen Economic Development Models and

Banking and Financing Institution Support in The Development

of The Innovation System

Iskandar Muda, Mr Rahmanta, Mrs Marhayanie, Adi Syah Putra

This study aims to analyze Institutional Model of Fishery and Marine Economy Development and Banking and Finance Institution Support in Development of Innovation System of Fishery and Marine Region in North Sumatera. This type of research is descriptive quantitative. The data used are primary data. The...

A Study of Determinant Factors Towards the Quality Teaching

Among Teachers at Primary School in Bentong District

Ain Atiqah Syaqilah Fauzi, Nasiha Abdullah, Nik Noor Afizah Azlan, Ahmad Suffian Mohd Zahari

The quality of teaching among the teachers is important in order to improve the students' achievement as well as improving the quality of education to students. In order to do that, teachers need to look deeper into ways to transform old classrooms and teaching styles into 21st century teaching and learning...

Determinants Of Customer Loyalty: A Preliminary Study On A

Prominent Bank In Malaysia

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The Effect of Interpersonal Relationships and Role Ambiguity on

Job Satisfaction and Its Impact Toward Employees' Intention to

Leave in Event Organizer Services Provider in Medan

Indayana Dalimunthe, Dr. Yeni Absah, Dr. Sitti Raha Agoes Salim

Event organizer has been growing fast in modern society as an answer for people's need to hold events for them without managing the event themselves. Event organizer enabled people to hold events without properly plan, organize, act, and control the events. As result, there is a high demand for event...

The Effect of Service Quality on Satisfaction and Impact on

Loyalty User Transportation Service CV Sempati Star

Medan-Banda Aceh

Finta Aramita, Endang Sulistya Rini, Beby Karina Fawzeea Sembiring

The growing and increasing role of the service sector in the future is mainly driven by rapid advances in telecommunications and information technology. The challenge for the service management today is how to integrate all the elements that exist in the consumer service to fit the strategy of the company's...

The Effect Of Education And Training (Total) On Education:

Performance Through Education Competency With Organization

Support As Variable Moderating On School Country Police (Spn)

Polda Sumut

Suhana Sinaga, Sitti Raha Agoes Salim, Yeni Absah

Education and training can not be separated to create an environment where educators can improve their skills, knowledge and attitudes to help the organization achieve its goals. In other words it helps educators to grow.The purpose of this study is to determine the effect of Educator Training on Educators'...

Influence Of Servicescape, Customer Satisfaction, WOM, and

Social Media to Consumer Loyalty (study case bali beach)

Syafrizal Helmi Situmorang

Indonesia have blessed with many beautiful natural scenery. This beautiful gift of nature must be kept to the best possible so that it can be enjoyed by many peopleand become a source of local income. The purpose of this study was to determine the influence of Servicescape, Customer satisfaction, Word...

The Influence Of Work Satisfaction And Work Stress On

Organizational Citizenship Behavior Through Organizational

Commitment As Intervening Variable At PT Asabri (Persero),

Sumatera Region

Reni Astrida, Sitti Raha Agoes Salim, Yeni Absah

PT ASABRI (Persero) is a social life insurance company which is required by law and gives financial protection for the Indonesian soldiers, Police officers, and employees who work for them. Today, the company is doing business and cultural transformation until 2021 in order to increase the welfare of...

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The Influence Of Social Media On Buying Decisions On Women

Small And Medium Enterprises (MSMEs) In North Sumatera

Fivi Rahmatus Sofiyah, Mrs Yulinda

The purpose of this research is to know the influence of social media usages such as Facebook, Instagram, WhatsApp, Line, and Twitter on buying decisions Women MSMEs in North Sumatra from 2015 until 2016. This research is descriptively quantitative method with the purposive sampling as many as 100 Women...

The Influence of Firm Size, Export Ratio and Earning Variablity

On Firm Value with Economic Exposure as Intervening Variable

in The Manufacturing Industry Sector

Thomas Sumarsan Goh, Arthur Simanjuntak

This study was carried out to test the influence of firm size, export ratio, and earnings variability on the firm value with economic exposure as an intervening variable in the manufacturing industry sector listed in the Indonesia Stock Exchange. The population of this study were 138 manufacturing companies...

Entrepreneurial Intellectual Capital [Human Capital, Social

Capital, Customer Capital, Technology Capital] on SME's

performance in Medan, Indonesia

Yasmin Chairunisa Muchtar, Inneke Qamariah, - Fadli

This study aims to investigate the effect of Entrepreneurial Intellectual Capital [Human Capital, Social Capital, Customer Capital, Technology Capital] on SME's performance in Medan, Indonesia. Sixty business owners from various sector are used as samples in this survey. Data analysis used in this study...

Measuring Efficiency of Fuel Oil Usage in PT PLN: A Short-Run

Analysis

Tongam Sihol Nababan

This study aims to measure and to analyze the efficiency level of fuel oil usage in units of PT. PLN generation. The study result shows that until now the PLN is still operating in inefficiency condition, because of foil oil usage. The energy consumption level of fuel oil is less efficient compared with...

The Impact Of Risk Management And Bank Size On Profitability

Of Commercial Banking In Indonesia

Nisrul Irawati, Azhar Maksum

The growth of credit in Indonesian Banking industry tends to be slower in period 2011 until 2016 whereas the credit growth only 7.87% compare to 10.4% in 2016. But based on the important role of the banking sector for economic development, the regulator should manage the risk of the credit in order to...

The Role Of Sismiop (Information Management System Of Tax

Object) In Land And Building Tax Revenues (A Case Study At

The Regional Revenue Agency, Medan)

Farel Siregar

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The Analysis of Employee's Work Accident Trend for Policy

Making to BPJS Ketenagakerjaan Participant in Medan Belawan

Branch

Adriani Sinaga, Yeni Absah, Prihatin Lumbanraja

BPJS Ketenagakerjaan Branch Office Medan Belawan is a branch office that pays the highest occupational injury claim because it is in the area of Medan Industrial Estate. This study aims to analyze employee's work accident trend for policy making to BPJS Ketenagakerjaan participant in Medan Belawan branch....

Utilization of The Sand from Mount Sinabung Eruption as

Material for Planting Media

Bode Haryanto, Eri B B Tarigan, Rina Br Bukit, Jonathan I Tarigan, Paham Ginting

The idea of this study was to descript the output and feasibility of sand utilization from mount Sinabung eruption activities. The sand used as materials to produce planting media for vegetables. The experiment started from collecting the sand with pretreatment then added by certain material such as:...

The Impact of Supervision Characteristics of Board of

Commissioners on Tax Aggressiveness

Anastasia Niniek, Riko Riandoko, Muhammad Rheza Ramadhan

This study aims to find the effect of supervision characteristics of the board of commissioners on tax aggressiveness. Supervision characteristics of the board of commissioners are proxied by four proxies: risk management system and internal control, big-4 audit firm, external auditor independence, and...

The Influence of Cost of Equity on Financial Distress and Firm

Value

Anna Sumaryati, Nila Tristiarini

Cost of equity is the cost incurred by the company to meet the rate of return expected by investors, either in the form of dividends or capital gains Since investors wanted a rate of return on the investment, then the company should compensate the shareholders with the economic return implicit in forecasting...

Factors Affecting Capital Structure Of Go Public Manufacturing

Companies In BEI (Indonesia Stock Exchange)

Abdillah Arif Nasution, Ikhsan Siregar, Mutia Ismail

This study aims to determine and analyze the effect of company's size, business risk, asset growth, and profitability on capital structure in manufacturing companies listed on the stock exchange of Indonesia year 2014 - 2016, either partially or simultaneously. In addition, this study also reviewed variables...

The Effect of The Existence of Large and Medium Industries on

The Absorption of Labor in Sumatera Utara

Iskandar Muda, Ratna Balqis Nasution, Mrs Erlina, Hasan Sakti Siregar, Setareh Katircioglu

The purpose of this study is to see the influence and existence of large and medium industries in North Sumatra to absorb the number of workers in North Sumatra Province. The type of research is descriptive quantitative. The data used are secondary data sourced from Statistics Agency of North Sumatera...

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The Triple Bottom Line (TBL) studies towards Sustainability

Marketing

Zalinawati Abdullah, Ahmad Ismail Mohd Anuar, Wan Maziah Wan Ab Razak, Nurul Aini Aziz, Haslenna Hamdan

The research was conducted to investigate the implementation of marketing sustainability among customer. Sustainability is a collective term for everything to do with responsibility for the world in which we live. The study focusing on the relationship between three elements of Triple Bottom Line (TBL)...

Increasing Organization Performance Through Competitive

Advantage of Private University in Medan

Elizabeth Haloho, Lailan Tawila

There is increament number of students who finished Senior High School in Medan every year. With this reason, private universities are encourage to compete amongs them to atract new students to register. Therefore each of them must have a competitive advantage to become known by potential students and...

Influence Service Quality, Product Quality, and Brand Image to

Customer Loyalty at Club Music Center Stage Novotel Lampung

Susi Indriyani

Competition in the entertainment at the music club needs to be faced with the right competitive strategy, the entertainment industry in Bandar Lampung is quite well developed, this is marked by the emergence of some family karaoke, and other entertainment. Hotel Novotel Lampung as one of the four-star...

The Adversity Quotient (Control, Origin & Ownership, Reach,

and Endurance) and its Relationship Toward Entrepreneurial

Intention: A Study on Student in Faculty of Economics &

Business Universitas Sumatera Utara

Bongsu Hutagalung, Yasmin Chairunisa Muchtar, Muhammad Irsyad Tamimi, Ami Dilham, Arif Qaedi Hutagalung

This study aimed to analyze the effect of control, origin & ownership, reach, and endurance on the entrepreneurial intention. The population and sample in this study were students in The Faculty of Economics and Business University of North Sumatera batch 2013 and 2014 majoring in entrepreneurship up...

Development Strategies for Woven SMEs in Medan

Inggrita Gusti Sari Nasution, Frida Ramadini

This research aims to implement development strategies for woven SMEs in Medan. Data used was primary data from depth interview with the woven SMEs in Medan. Sampling technique used was a non-probability sampling. SWOT analysis by comparing internal and external factors was used for data analysis. The...

The Effect of Transformational Leadership on Team Satisfaction:

The Mediating Effect of Psychological Safety

Mr Winarto

Following hitherto published research on the positive outcomes of transformational leadership; I hypothesize that transformational leadership leads to higher team satisfaction. However, as suggested by Bass (1999), the mechanisms underlying the relationships between transformational leadership and the...

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Significant Overview of Japan Tourism: Muslim Friendly

Destination and Social Media

Syarifah Hasanah, Aizul Nahar Harun

Muslim friendly destination has been emerging rapidly in majority Muslim countries, as well as in minority Muslim countries. Interestingly, many minority Muslim countries have found the Muslim friendly destination as lucrative, as result they pay more serious attention to it. Japan is one of examples...

Financial Literacy Of Sme's In Medan City: A Descriptive

Analysis

Lisa Marlina, Nisrul Irawati

There are a huge number of workers in Indonesia's SME sector almost 98% but this SME's sector give an enormous amount of contribution to Gross Domestic Product. On the contrary, SME's sector still has a low level of productivity and business performance. In order to perform well in business, every business...

Financial Literacy and Financial Behavior as a Measure of

Financial Satisfaction

Beby Kendida Hasibuan, Yeti Meliany Lubis, Walad Altsani HR

The economy of a good country can be seen from how many people are involved in entrepreneurship activities in order to meet their needs. This condition also happened in Indonesia, where currently many Indonesians are choosing this field. Unfortunately this activity is not done consistently and regularly,...

Foundation Lecturer's Performance Antecedents (Empirical

Study on Private Universities in Medan)

Kuras Purba, Prihatin Lumbanraja, Elisabeth Siahaan, Parapat Gultom

This study aims to examine empirically the antecedents of foundation lecturer's performance. There are four variables measured which consists of foundation management, university governance, dean's leadership and lecturer's performance. Data analysis is based on 576 students of nine universities in Medan...

The Analysis of Modern Retail Growth toward Traditional retail

store in Berastagi as a Tourist City

Wan Suryani, Febrilian Lestario

This research aims to reveal and overview the impact of modern retail business' growth toward the development of traditional retail store in Berastagi as a tourist city. The hypothesis of this research is The growth of modern retail business significantly impacts the growth of traditional retail store...

The Influence of Intellectual Capital on Competitive Advantage

on Universities in Medan City

Isfenti Sadalia, Nisrul Irawati, Isdiana Syafitri

The purpose of this research is to analyze the influence of intellectual capital on competitive advantage. The samples of this research is 80 (eighty) lecturers in several universities in Sumatera Utara province, by applying simple random sampling. Data was analyzed by using multiple linier regression...

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T. Citra Nisa Farza, Mrs Fitrawaty, M. Yusuf Harahap

The achievement of a low inflation target is a big agenda that is currently being carried by Bank Indonesia. This target is certainly not apart from the Central Bank's monetary policy strategy that implements Inflation Targeting (IT). This research aims to analyze the effect of the money supply, BI Rate,...

The Effect of Rice Subsidyon The Expenditure of Public Family

Consumption And Welfare of Poor Households

Renny Maisyarah, Mr Sofyardi

The aim of this study is to find out an influence of rice subsidy on the consumption expenditure of poor families in North Sumatera Province, so that there is an impact on the welfare of poor families in North Sumatra Province, and also the influence of rice subsidy on family welfare of poor families...

Analysis Of Value Added From Results Of Catfish Fishing

Trawling Kite In The Village Of Bagan Percut District Percut Sei

Tuan Regency Deli Serdang

Mr Ramli

The phenomenon of economic inequality between coastal cities and villages is a key issue for economic development. Breakthrough development strategies need to be sought in order to overcome poverty and equitable development outcomes. Regional economic development, implemented by the government is limited...

Effect of Earnings Management on Cost of Debt Before and After

International Standard Financial Reporting Implementation

Chandra Situmeang, Azhar Maksum, Mrs Erlina, Tavi Supriana

A business environment with high competition requires higher efficiency, not just operating efficiency but also the funding efficiency. One of the causes of funding inefficiency is the high cost of debt as a result of earnings management practices that can reduce investor confidence in the company's...

Antecedent Capital Structure and Its Effect on Firm Value :Case

Study on Tourism Industry Sector Listed in Indonesia Stock

Exchange

Mr Ngatemin, Azhar Maksum, Mrs Erlina, Mr Sirojuzilam

Research on the capital market in the tourism industry in Indonesia is still very limited, besides the results of research related to it each has not found consistent results. This research aims to assess empirically the antecedents of capital structure and its effect on firm value. The population of...

Effectiveness of Market Results Diversified Palm Products and

Constraints of Capital, Financing and Marketing

Marlon Sihombing, Iskandar Muda, Erni Jumilawati, Abikusno Dharsuky

The purpose of this research is to know the effectiveness and constraints of Capital, Financing and Marketing of Diversification of Palm Products resulting from the development of Regional Innovation System. The type of this research is explanatory survey and analyzed with quantitative descriptive. Respondents...

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Mrs Marhayanie, Mutia Ismail, Iskandar Muda

The purpose of this study is to know the level of community knowledge of the smartphone features with Learning and Asking its use to increase the turnover of car rental service sales in Medan. This research type is descriptive quantitative with student population of rental user in Medan City. The selected...

Role and Contribution of Village Financial Management to

Realize Transparency And Accountable Village Budgeting

Revenue And Expenditure District of West Bangka

Mr Karmawan

This Empirical Research aims to look at the contribution and role of Management Village Finance by village apparatus, overall activities including planning, Implementation, administration, reporting and accountability of village finances and Funds Villages sourced from the State Revenue and Expenditure...

The Influence of Individual Characteristics and Transformational

Leadership Style on Job Satisfaction and Employee Performance

at Bank Aceh Sharia

Marbawi Adamy, Prihatin Lumbanraja, Arlina Nurbaity Lubis, Elisabeth Siahaan

The purpose of this quantitative descriptive explanatory surve study was to analyze the influence individual characteristics, transformational leaders, and job satisfaction on performance of employees on PT. Bank Aceh Sharia Lhokseumawe. The research was conducted at the Bank Aceh Sharia employees located...

The Role of Buying Motivation in Moderating Online Shopping

Behaviour

Junita Safitri, Endang Sulistya Rini, Paham Ginting, Arlina Nurbaity Lubis

Nowadays Online Shopping have been part of our life. It has been known since internet was introduced to Indonesia. Every day millions of people are going online, but just some of them going online for shopping. In fact, online shopping hasn't been the main option when customer still bought offline especially...

The Analysis Of Factors Influencing The Contractor Bid / No Bid

Decision Making And The Success Of Tender Bids In

Procurement Of Services Construction At PT Inalum (Persero)

Syaifuddin A. Harahap

The reliable infrastructures support the success of the company operation dan such achievement would be gained if planning, monitoring and maintaining of the infrastrucutures executed correctly and timely. One method in getting the reliable infrastructures by means of outsource to another party (contractor)....

The Effect Of The Non-Physical Work Environment And Job

Insecurity On The Performance Of Outsourcing Employee

Business Support Through The Motivation As Intervening

Variable at PT Telekomunikasi Selular Branch Medan

Nuri Aslami, Sitti Raha Agoes Salim, Yeni Absah

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Corporate Culture as an Effort of Company Transformation

Doli M. Ja'far Dalimunthe, Sabrina Cyndi Azhari Pasaribu

Applying corporate culture has become a demand that can not be negotiable by the company to still exist in the increasingly fierce competition today. Not only for big companies, corporate culture is now also considered very important to be applied by small companies though. Companies that are only profit-oriented...

Factors Supporting Digital Marketing Of Competitive Rattan

Products In Medan City

Ritha F. Dalimunthe

Entrepreneurs have an important role in improving the small industry of an area like Medan municipality. It can be done through the increase of the added value of raw materials into semi-finished materials or finished goods in local area and can be marketed overseas so that it can open employment and...

Entrepreneurship as Career Choice for University Students in

Medan

Yasmin Chairunisa Muchtar, Inneke Qamariah

One way to reduce unemployment is by creating jobs through entrepreneurship. Entrepreneurship can improve the economy of the surrounding community, which will broadly encourage the Indonesian economy. In this case, students, the most potential employer, after completing the education will face career...

The Role of Product Innovation in Mediating Market Orientation

with Marketing Performance

Gusti Agung Ayu Widyaningsih, Ni Nyoman Kerti Yasa, I Gusti Ayu Ketut Giantari, I G A Dewi Adnyani

The aim of this research is to explain the product innovation role in mediating relationship between market orientations with marketing performance to restaurant industry in Denpasar City. This research was conducted by the owners or manager of restaurant in Denpasar City by using questionnaire that...

Leadership Assessments in Business Organizations in Indonesia

Arief Fahmie, Laura Monica, Dwi Despiana, Elisa Kusrini

Leadership creates a social influence practice in which the leader encourages the voluntary involvement of subordinates to achieve organization goals. For instance, to manage supply chain, leadership contributes significantly in term of flexibility and innovation. In the era of VUCA (Volatility, Uncertainty,...

The Reforestation through Oil Palm Plantation in Sumatra Island

Jan Horas Veryady Purba

The Sumatra Island is one of the important islands that has the largest contribution in the development of plantations in Indonesia. Some of the world's important commodities are produced on the Sumatra Island and deliver Indonesia into an important producing country in the world. The purpose of this...

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The Effect of The Political Environment and The Economic

Environment on The Welfare of Community

Agus Tripriyono, Iskandar Muda, Mrs Erlina

This study aims to examine the influence of the political environment and the economic environment on the welfare of society. The independent variable of this research is the political environment and the economic environment and its dependent variable is the welfare of society. This type of research...

Financial Studies of The Development Project of Belawan Access

Channel at PT. Pelindo I (Persero)

Listiani Nurul Huda

Geographical condition of Indonesia that is dominated by sea led Indonesia to desperate need of the sea transportation management to meet its operational needs. PT. Pelindo I is a company that has the authority to manage the port in North Sumatra and its surrounding areas. Belawan's current access channel...

Regional Development Based on System Integration Paddy Rice

Farming and Livestock Buffaloes in Humbang Hasundutan

Regency

Hotden L. Nainggolan, Marlon Sihombing, Tavi Supriana, Ma'ruf Tafsin

This study was conducted to assess the regional development based on system integration paddy rice farming and livestock buffaloes in Humbang Hasundutan. This study uses analysis of linear regression with SPSS. The results showed; a) system integration paddy rice farming and livestock buffaloes more...

Various Aspects of The Implementation of SIMDA Which

Influence The Quality of Financial Statement with The Role of

PPK-SKPD as Moderating Variable (A Case Study at The SKPD

of Deli Serdang Regency)

Mrs Agustina, Tapi Anda Sari Lubis, Iskandar Muda

The objective of this study was to examine some factors which influence the financial statement quality of SKPD (Regional Work Unit) of the Deli Serdang District Government with the role of PPK-SKPD as moderating variable. The study used causal comparative method with primary data. The population was...

The Effect of Intellectual Capital Measurement on Profitability

and Market Price

Dian Prawitasari, Ririh Dian Pratiwi, Nila Tristiarini

Recently, the role of Intellectual Capital is becoming one of the important strategies of the company to develop and grow, enhance it is able to improve the company's value with the utilization of existing resources Intellectual capital is the knowledge that gives information about the company's intangible...

The Effect of Environmental Performance and Intellectual

Capital on Financial Performance Moderated by CSR Disclosure

on Manufacture Companies Listed in ISX

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This study aims to analyze the effect of environmental performance and intellectual capital on the financial performance of companies moderated by corporate social responsibility disclosure. Data are collected from all manufacturing companies listed on the Indonesia Stock Exchange in 2012-2014. By using...

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Investigating the Moderating Effect of Hospital

Public Image on Loyalty

Arlina Nurbaity Lubis

Department of Management

Faculty of Economic and Business

Universitas Sumatera Utara

Medan, Indonesia

arlinalubis10@gmail.com

Prihatin Lumbanraja

Department of Management

Faculty of Economic and Business

Universitas Sumatera Utara

Abstract—A growing concern for people’s health has brought

out a need of a better healthcare. People will be more selective to use a healthcare services. The seed of service repurchase for healthcare started from their loyalty toward the healthcare services provider. People went through service experience to evaluate their satisfaction toward service given to them. Naturally, people will be satisfied if they had experienced the services beyond their expectation. However, public opinion to the healthcare services provider affect their choice. This research aimed to evaluate the new dimension of healthcare services on their satisfaction and loyalty. In addition, this research also evaluated the moderating effect of hospital image while creating

people’s loyalty in private hospital. This research took place in three private hospital in Medan. A number of 150 inpatients participated in this research. Data were collected through questionnaires and structured interview. The data was analyzed using second-order partial least squares. This research showed a positive and significant effect of service quality toward

inpatients’ satisfaction.Loyalty can only affect indirectly through

satisfaction. The presence of hospital images slightly strengthen

inpatients’ loyalty toward healthcare services provider. However, it is insignificant. This study suggested that hospital management should focused on improving their patient educational services and their staff professionalism as both services perceived higher on service quality.

Keywords— Hospital Images, Service Quality, Satisfaction, Loyalty

I. I

NTRODUCTION

Demand for private healthcare services has been increasing

for last decade, especially in Medan, North Sumatera. People's

trust toward private healthcare services provider keeps on

growing. They believed that the private healthcare services

mostly better than the government one. On a single glance,

people will mostly perceived that the private one better than the

government one. Most people believed that private healthcare

services had more sophisticated and modern medical

equipment. To put it simply, they private healthcare service

provider gave a better performance.

Healthcare service industry, like other services, required a

lot of interaction with its customer to determine their

successfulness [1]. The core for their success factor was related

to the perceived service quality, satisfaction, and customer

loyalty. Even though most people believed that the private will

perform better, the customer behavior is dynamic. People’s

preference may change overtime.

quality itself. However, according to marketing concept,

service consumption and evaluation will ended up on

dissatisfied, satisfied, or delighted. A loyal behavior can only

occurred on satisfied and delighted customer [3].

Parasuraman et al. [4] already stated one’s service quality

become a key success factor for sustainability in a competitive

market. Service quality is generated through service delivery,

the routine that delivered for each customer. We should keep a

note that the key success factor for service quality was not the

procedure or the operation itself, but the perceived service

quality on customer's perspective [5]. Thus, it is important to

evaluate the services that perceived by the customer. The

perceived service quality will affect their satisfaction level

[6,7]. The significance for these finding is the rapid change for

recent years' hospital service quality. They steadily improve the

services to be better than another competitor on the field.

Bowen and Chen [8] warned that satisfying the customer

was not enough, they should be delighted with the services to

generate their loyal behavior. Satisfy the customer and brought

up their loyalty is actually not an option for services provider,

especially the private one, as people will be more aware. It is a

must, a task to carry out if they were willing to create a

competitive advantage and sustainable growth for a long term

[9].

will perceived better on delivering CSR. Hospital manager also

This is an open access article under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/). 464 Advances in Economics, Business and Management Research (AEBMR), volume 46

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spend a lot of money to build the corporate’s image. They do

not wish that people negatively perceived themselves.

However, it is still unclear whether the image actually will

strengthen people’s loyalty or not.

This research was aimed to investigate the effect of

perceived service quality on patients’ satisfaction and loyalty,

a

s well as the important aspect of service quality on patients’

perspective for private healthcare services provider in Medan.

Moreover, we investigate the role of brand image in

relationship between perceived services quality with

satisfaction and loyalty.

II. LITERATURE

REVIEW

A. Benefit of Loyal Patients and how to measure it

Marketers agreed to the term that one of final goal of

marketing activities was achieving customer loyalty [12]. It

was

the source of company’s long

-life profit as well as the

source of sustainable competitive advantage [13]. Wright et al.

illustrated that loyalty, in service context, described as their

behavior and willingness to repurchase the services in the

future repeatedly. They will also voluntarily recommend their

friend or other to the product (or service provider). Loyalty is

more than a consistent repurchase behavior.

A loyal patient will not easily swayed to other healthcare

provider. Thus, a loyal patient will be more likely to use our

healthcare services when they or their family need it. In a nut

shell, loyal patient will retain themselves to use our services in

the near future. Based on previous studies, it is around fifteen

times more expensive to gain a new customer than maintaining

the existing one [14]. Retaining the customer become more

strategic way to achieve sustainability for a long term.

Researcher agreed on how a loyalty reflected toward

customers’ behavior. Firstly, they will repurchase or reuse the

product and services (repurchase). Secondly, they will be

harder to shift toward other product (retain). Lastly, they will

recommend the product to other, family, friends, even collage

(recommend).

B. Relationship of Satisfaction and Loyalty

Satisfaction was not inherent with the products or services

but their perception toward its attribute [15]. Naturally, each

person’s satisfaction level for the same service will vary

according to each individual [16]. The concept of satisfaction

related to customers’ e

valuation toward their previous

consumption, either product or service [17].The customer will

compare their previous experience with the expectation. They

will be satisfied if at least their consumption meets their

expectation. In contrast, they will be dissatisfied if it can not

meet their expectation. Lovelock and Wright explained that

there is a huge difference in loyalty behavior on the one that

satisfied with the one that extremely satisfied (delighted). Thus,

we expect the positive effect of customer satisfaction to their

loyalty.

C. Service Quality and Patients’ Satisfaction

Parasuraman [18] stated that service quality is a

multi-dimension concept. It should not be explained separately.

According to Parasuraman, service quality had five

dimensions: (1) tangibility, (2) empathy, (3) responsiveness,

(4) reliability, and (5) assurance. Lubis’s study [19] expanded

the dimension in accordance with the healthcare practice in

North Sumatera and summarized ten dimension of healthcare

service quality: (1) patient educational services, (2)

staff-professionalism, (3) food aspect, (4) assurance, (5)

responsiveness and convenience services, (6) empathy, (7)

cleanliness, (8) well-educated staff, (9) people trust-gaining

services, and (10) reliable services.

Customers’ satisfaction was

evaluated based on their

experience toward the given services. There was a direct

relationship between the perceived service quality and their

satisfaction. According to our literature, a better service lead to

satisfaction. Jiang and Wang’s Study [20] sh

owed that on a

utilitarian services such as healthcare services, it is important to

show the pleasure of good services than arousing the

satisfaction itself. Ahmed et al. [21] empirically showed that

the service provided by healthcare provider will positively

affect their satisfaction and loyalty.

D. Previous role of brand image

Brand image lied on people’s mind. It based on both their

capabilities and more emotional aspect [22]. It represent the

corporate on public’s mindset [23]. Chung et al. evaluated the

moderating effect of brand image on CSR and Loyalty. Indeed,

the brand im

age strengthen people’s acceptance toward the

the study on private healthcare service provider in Medan. We

researched on RS Stella Maris, RS Elisabeth, and RS

Columbia-Asia. A number of fifty inpatients for each hospital

have participated in this research. The data were collected

through self-administering questionnaires. The questionnaires

were based on the previous work related to ten-dimension of

hospital service quality.

B. Data Analysis Method

The data were analyzed using Smart-PLS [24]. In order to

evaluate the importance of each aspect of perceived service

quality, a second-order model was proposed in this study. The

proposed model summarized in Figure 1. The model was

evaluated for its validity and reliability based on

partial-least-squared criterion.

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Figure 1. Research Model

C. Evaluating the Moderation Role

In order to achieve the robust estimate, we used two-stage

approach to estimate the effect of each variable in model. The

brand image used as both independent and moderating

We evaluated the current situation of each construct based

on its average value (max scale of 5). The gap between

maximum and minimum value can explain the variation of

each inpatients' respond within our research construct.

Table 1. Descriptive Result

Staff Professionalism 4.09 5.00 2.17

Well-Educated Staff 4.05 5.00 2.05

service quality aspect also perceived well to the inpatients

(cut-off value of 3.40). The highest value that perceived well on the

patients’ perspective was their assurance level. They

commonly believed that private healthcare services assuring

themselves for the services given. Also, the place’s cleanliness

was always in check. They keep the ward clean all the time.

However, there were several inpatients that perceived most

aspect negatively. The existence of minimum value under 2.60

point leave a lot of room for improvement. Overall, all aspect

of our variables had already been perceived well.

B. Validity and Reliability Model

The PLS model evaluation require validity and reliability

test for the given model [25]. The indicator for each construct

should be able to explain its variables well according to the its

average variance extracted (AVE) and composite reliability.

The AVE value for each construct should be more than 0.5 to

achieve the validity model. The composite reliability value for

each construct should be more than 0.7 to achieve the

reliability model. Validity and reliability index value based on

AVE and composite reliability were summarized on Table 2 as

follow:

Table 2. Validity and Reliability Valuation PLS Model

Construct AVE Composite Reliability

Assurance 0.538 0.853

Cleanliness 0.745 0.897

Corporate Image 0.586 0.951

Empathy 0.738 0.894

Food Aspect 0.872 0.953

Loyalty 0.613 0.967

Patient Educational Services 0.615 0.954

Patient Trust 0.727 0.889

Reliable Service 0.643 0.843

Responsiveness and Convenience 0.734 0.917

Satisfaction 0.760 0.950

Staff Professionalism 0.709 0.935

Well-Educated Staff 0.597 0.855