Analysis Of Service Quality, Price And Container Distribution On Competitive Advantage Through Consumer Excellence a t PT. Evergreen Shipping Agency Indonesia Makassar Branch
Hasniaty a,1, Glorya Martzella Noija a,2, Nasir Hamzah a,3, Gunawan Bata Ilyas b,4,Yohannes Johny Soetiknoa,5
1 a Program Studi Magister Manajemen, Universitas Fajar, b STIE AMIKOP Makassar [email protected], [email protected], [email protected], [email protected]
* corresponding author
I. Introduction
Trade between countries is inseparable from export and import. Indonesia as a developing country carries out import-export activities. In addition, export activities are based on the condition that no single country is truly independent because each other needs one another. Export activities have a very important role for Indonesia's economic strength. Exports have a strategic role in assisting the government in carrying out domestic development [6].
To support trade activities between countries, of course connectivity is needed in the form of adequate means of transportation to bring goods/products/commodities to their destination. This connectivity can be done by sea and air access. In the selection of transportation media, one must choose an effective and efficient one in order to reduce shipping/distribution costs. This has encouraged the establishment of shipping companies that provide container and shipping services through sea access, one of which is PT. Evergreen Shipping Agency Indonesia.
PT. Evergreen Shipping Agency Indonesia is a container or container transportation and shipping company from Taiwan with its head office in Jakarta, which has several branches in Indonesia, one of which is in the city of Makassar.
The growth rate of export-import activities from year to year can be seen from the following data from the Ministry of Trade:
1) Period January-December 2018: Exports increased by 6.65% while imports increased by 20.15%.
2) Period January-December 2019: Exports decreased by 6.94% and imports decreased by 9.53%.
ARTICLE INFO A B S T R A C T
Article history:
Received 30 Sep 2022 Revised 06 Nov 2022 Accepted 13 Dec 2022
This research was conducted at PT. Evergreen Shipping Agency Indonesia Makassar branch as a container transportation and shipping company. The purpose of this study is to analyze the effect of service quality, price and distribution on competitive advantage through customer satisfaction. The population in this study are all consumers or exporters who use the services of PT Evergreen Shipping Agency Indonesia Makassar branch with saturated sampling or the entire population. The data collection instrument was in the form of a questionnaire distributed via google form, using quantitative analysis using the SmartPLS method. This study proposes ten (10) hypotheses, eight of which have a significant effect and three are not significant. The results of the study found (1) Service Quality has no significant effect on Consumer Satisfaction. (2) Price has a significant effect on Consumer Satisfaction, (3) Container Distribution has a significant effect on Consumer Satisfaction, (4) Consumer Satisfaction has no significant effect on Competitive Advantage, (5) Service Quality has no significant effect on Competitive Advantage, (6) Price has an effect significant effect on Competitive Advantage, (7) Container Distribution has a significant effect on Competitive Advantage, (8) Service Quality has no significant effect on Competitive Advantage through Consumer Satisfaction, (9) Price has a significant effect on Competitive Advantage through Consumer Satisfaction, (10) Container Distribution has an effect on significant impact on Competitive Advantage through Customer Satisfaction.
Copyright © 2022 International Journal of Artificial Intelegence Research. All rights reserved.
Keywords:
Container Distribution, Consumer Satisfaction, Competitive Advantage Price, Service Quality
Hasniaty et al (Analysis of Service Quality, Price and Container Distribution on Competitive 3) Period January-December 2020: Exports decreased by 2.61% and imports decreased by 17.34%.
4) January-December 2021 period: Exports increased by 41.88% while imports increased by 38.59%.
5) January-April 2022 period: Exports increased by 36.68% while imports increased by 28.51%.
Based on the data above, it can be seen that export-import growth has continued to increase even though it had fallen in 2019 to 2020. This increase was also accompanied by a very tight level of competition, companies competing to be able to provide the maximum quality of service to consumers. Various kinds of existing shipping agents make consumers have many choices before determining which shipping agent company has better service compared to other competitors.
Increased competition requires companies to always pay attention to the needs and desires of consumers and try to meet consumer expectations by providing the best service in order to continue to exist in the arena of business competition. Several companies that have become competitors to PT Evergreen Shipping Agency Indonesia include PT. Ocean Network Express Indonesia (ONE), PT Maersk Line, and PT. SITC Indonesia
Competitive advantage comes from the company's ability to take advantage of its internal strengths to respond to external environmental opportunities while avoiding external threats and internal weaknesses (Mooney, 2017). Competitive advantage is a condition owned by a company where it exceeds its competitors.
In maintaining the company in the midst of intense business competition, it is necessary to pay attention to the supporting factors so that there is satisfaction with the services provided. Customer satisfaction in the service sector is an important element and a determinant in developing a company so that it continues to exist in the face of competition. Improving service to consumers is very important in an effort to increase consumer satisfaction,
Customer satisfaction can not only be achieved with service quality, but there are other factors that support the fulfillment of customer satisfaction. Service quality is a unique phenomenon, because the dimensions and indicators can differ among the people involved in the service. Service quality refers to the level of service perfection in meeting the needs and demands of each consumer. Azwar (2013) also explains that whether the needs and demands of service users are met or not.
Talking about customer satisfaction, price is one of the factors so that consumers are willing to use the services provided by PT Evergreen Shipping Agency Indonesia. According to Andi (2015: 128) price is the main factor that can influence a buyer's choice, price plays quite a role in determining consumer purchases, for this reason, before setting a price, the company should look at several price references for a product that is considered quite high in sales.
In addition to quality service and good prices, service satisfaction at PT Evergreen Shipping Agency Indonesia can also be seen from the availability of container stock or the container distribution process itself. Sometimes the large number of requests for containers cannot be fulfilled due to a shortage of available containers. This scarcity occurs not only at PT Evergreen Shipping Agency Indonesia but at other competing companies. Currently, one of the reasons for the scarcity is the Covid-19 pandemic, which has pushed developed countries to re-implement lockdowns, disrupting export-import routes. There has been a buildup of containers and also limited space for ships on global shipping that has occurred since October last year (Logistiknews, Jan 16 2022). One of the obstacles is that container storage facilities (depots) are inadequate, so there are many complaints from consumers.
On the basis of the background description presented above, the researcher is interested in conducting research with the title: "Analysis of Service Quality, Price, Container Distribution of Competitive Advantage Through Consumer Satisfaction at PT Evergreen Shipping Agency Indonesia Makassar Branch". Furthermore, the formulation of the research problem can be seen as follows:
1. Does Service Quality have a significant effect on Customer Satisfaction?
2. Does Price have a significant effect on Consumer Satisfaction?
3. Does Container Distribution have a significant effect on Consumer Satisfaction?
4. Does Customer Satisfaction have a significant effect on Competitive Advantage?
5. Does Service Quality have a significant effect on Competitive Advantage?
6. Does Price have a significant effect on Competitive Advantage?
7. Does Container Distribution have a significant effect on Competitive Advantage?
8. Does Service Quality have a significant effect on Competitive Advantage through Customer Satisfaction?
9. Does Price have a significant effect on Competitive Advantage through Customer Satisfaction?
10. Does Container Distribution have a significant effect on Competitive Advantage through Customer Satisfaction?.
II. Methods
This study aims to analyze and explain the effect of service quality on customer satisfaction, the effect of price on customer satisfaction, the effect of container distribution on customer satisfaction, the effect of customer satisfaction on competitive advantage, the effect of service quality on competitive advantage, the effect of price on competitive advantage, the effect of container distribution on competitive advantage, the effect of service quality on competitive advantage through customer satisfaction, the effect of price on competitive advantage through customer satisfaction, and the effect of container distribution on competitive advantage through customer satisfaction.
The population in this study is all consumers at PT. Evergreen Shipping Agency Indonesia.
According to Roscoe in Sugiyono (2015) an appropriate sample size in a study is between 30 and 500.
Based on exporter data from PT. The Indonesian branch of the Evergreen Shipping Agency, on average, exporters who use the services of PT. Evergreen Shipping Agency Indonesia Makassar branch with 30 companies. Due to the small number, the researchers used a saturated sample. This study used a non-probability sampling technique with purposive sampling with the following respondent criteria:
1) Exporting company located in Makassar.
2) Using the services of PT. Evergreen Shipping Indonesia more than once a year..
III. Result and Discussion
Respondents' answers on average on the service quality variable with an average value of 4 means the tendency to agree. The highest score was obtained on the tangibles indicator in the statement
"Complete documents for picking up goods at destination" with an average value of 4.63. According to Tjiptono (2014: 282) physical evidence (tangibles) is a form of a company's ability to show its existence to customers or external parties. Real evidence of the services provided by the service provider is the appearance and capability of the facilities or infrastructure owned by the company and the condition of the surrounding environment. Another definition expressed by Rosalia and Purnawati (2018: 247) in their research reveals how these agencies display the ability of reliable physical facilities and infrastructure. In this case PT, Evergreen Shipping Agency Indonesia Makassar branch provides services with good facilities. The second highest average value with a value of 4.53 can be seen in the responsiveness indicator with the statement "staff is willing to help customer needs", there is also a guarantee indicator with the statement "guarantee the safety of goods arriving at their destination safely, and also in the attention indicator with the statement that Evergreen staff personally pay attention and are friendly to consumers. According to Tjiptono (2014: 282) responsiveness is the desire of staff to help customers and provide responsive services. According to Supriyanto and Ernawati (2010: 302) guarantee is the ability of service providers to increase customer confidence in the services offered. According to Supriyanto and Eranawaty (2010: 302) attention is the provision of individual services with full attention and according to the needs or expectations of consumers. Based on this theory PT. Evergreen Shipping Agency Indonesia Makassar branch needs to maintain and even improve fast response, guarantee good delivery and handling, as well as pay attention and be proven to provide good service, in order to provide better service quality for consumers and be able to inform other potential customers
The price shows that the highest average value with a value of 4.27 is obtained on the price affordability indicator with the statement "affordable prices make consumers want to use Evergreen's services again" and the second highest value remains on the price affordability indicator with the statement "price is set accordingly with available facilities. According to Kotler (2012: 345) affordability means that consumers can reach the prices set by the company. Products or services usually differ in price from the cheapest to the most expensive. With prices set, many consumers buy
Hasniaty et al (Analysis of Service Quality, Price and Container Distribution on Competitive products or use services. So based on the theory above, for consumers, the prices provided are affordable, making consumers want to return to using the services, the price of PT. Evergreen Shipping Agency is competitive and not more expensive than its competitors. For that PT. Evergreen must continue to offer affordable prices for consumers so that consumers do not switch to other cruises.
The distribution of containers shows that the highest average value with an average value of 4.20 is found in the product availability indicator with the statement "20' and 40'HC containers are easy to get". According to Kotler in Utama (2012: 8) product availability is a company's ability to maintain product inventory when there is an increase in demand for product brands. If consumers feel facilitated by the availability of the desired product at the intended store, then the consumer will not move. This illustrates that PT. Evergreen Shipping Agency Indonesia must oversee the distribution of containers so that the availability of containers is always there, especially during an increase in consumer demand In terms of competitive advantage, it shows that the highest average value with an average value of 4.20 is found in the market coverage indicator with the statement "Evergreen company always provides containers according to the wishes and needs of consumers compared to its competitors.
According to Kadarningsih, (2013), market coverage is the company's ability to cover all groups. This shows PT. Evergreen Shipping Agency Indonesia Makassar branch always offers competitive prices, offers the same low or even lower prices, offers high quality containers, provides containers according to the wishes and needs of consumers, and delivers container shipments to destination countries on time compared to its competitors.
On consumer satisfaction, the tendency of respondents to agree with the highest average of 4.47 on the indicator of conformity of expectations with the statement of conformity of expectations. And the second average with an average value of 4.33 on the indicator of intention to return with the statement "I feel satisfied and want to use Evergreen's services again", as well as on the willingness to recommend indicator with the statement "I feel satisfied and want to recommend it to other consumers use Evergreen services”. According to Hawkins and Lonney quoted in Tjiptono (2014:
101), conformity of expectations is the level of compatibility between service performance expected by consumers and perceived by consumers. Meanwhile, interest in visiting again is the willingness of consumers to revisit or reuse related services and willingness to recommend is the willingness of consumers to recommend services that have been felt to friends or family. So that customer satisfaction at the PT Evergreen Shipping Agency Indonesia Makassar branch has services that are in accordance with what consumers expect, they are satisfied with the prices given, satisfied with the containers used, satisfied with the overall services provided so they want to return to using services and recommend to consumers other.
Table 1. Smart PLS analysis with direct influence Hypothesis (Direct Effect) Original Sample (O) T-
Statistics P- Values
Results
H1 Service Quality (X1) → Satisfaction
Consumer (Z)
-0,036 0,178 0,859 Rejected
H2 Price (X2)
→ Satisfaction Consumer (Z)
0,467 2,280 0,023 Accepted
H3 Container Distribution (X3) → Consumer Satisfaction (Z)
0,423 2,880 0,004 Accepted
H4 Consumer Satisfaction (Z) →
Competitive Advantage (Y)
0,400 1,971 0,003 Accepted
H5 Service Quality (X1) → Superiority
compete (Y)
-0,138 0,964 0,335 Rejected
H6 Price (X2)
→
Competitive Advantage (Y)
0,791 2,839 0,000 Accepted
H7 Container Distribution (X3) → Competitive Advantage (Y)
0,614 2,864 0,001 Accepted
Based on the table above, the results obtained from the analysis of the T-Statistics and P-Values tests on the hypothesis that have a direct effect are described as follows:
a) T-Statistics and P-Values test for H1 can be seen that the T-Statistics value is 0.178 <1.96 and P-Values 0.859 > 0.05 so it can be concluded that H1 is rejected, meaning that Service Quality does not significantly affect Customer Satisfaction .
b) The T-Statistics and P-Values test for H2 can be seen that the T-Statistics value is 2.280 > 1.96 and the P-Values is 0.023 <0.05 so it can be concluded that H2 is accepted meaning that Price has a significant effect on Consumer Satisfaction
c) T-Statistics and P-Values test for H3 can be seen that the T-Statistics value is 2.880 > 1.96 and P-Values 0.004 <0.05 so it can be concluded that H3 is accepted meaning that Container Distribution has a significant effect on Consumer Satisfaction
d) The T-Statistics and P-Values test for H4 can be seen that the T-Statistics value is 1.971 > 1.96 and the P-Values is 0.003 <0.05 so it can be concluded that H4 is accepted which means that Consumer Satisfaction has a significant effect on Competitive Advantage.
e) The T-Statistics and P-Values test for H5 can be seen that the T-Statistics value is 0.964 <1.96 and the P-Values is 0.335 > 0.05 so it can be concluded that H5 is rejected meaning Service Quality does not significantly influence Competitive Advantage.
f) The T-Statistics and P-Values test for H6 can be seen that the T-Statistics value is 2.839 > 1.96 and the P-Values is 0.000 <0.05 so it can be concluded that H6 is accepted meaning that Price has a significant effect on Competitive Advantage.
g) The T-Statistics and P-Values test for H7 can be seen that the T-Statistics value is 2.864 > 1.96 and the P-Values is 0.001 <0.05 so it can be concluded that H7 is accepted meaning that the Container Distribution significantly influences Competitive Advantage
Table 2. Table 2. Smart PLS analysis with Indirect influence
the T-Statistics and P-Values tests on hypotheses that have an indirect effect are described as follows
a) The T-Statistics and P-Values test for H8 can be seen that the T-Statistics value is 0.154 <1.96 and the P-Values is 0.878 > 0.05 so it can be concluded that H8 is rejected meaning that service quality does not significantly affect Competitive Advantage through Consumer Satisfaction.
Hipotesis Pengaruh Tidak Langsung (Indirect
Effect)
Original sample (O)
T- Statistics
P-Values Hasil
H8 Quality of Service (X1)
→ Satisfaction Consumer (Z) ->
Competitive Advantage (Y)
-0.011 0,154 0,878 Rejected
H9 Price (X2) → Consumer Satisfaction (Z) →
Competitive Advantage (Y)
0,403 1,988 0,008 Accepted
H10 Container Distribution (X3) → Consumer Satisfaction (Z) →
Competitive Advantage (Y)
0,468 2,439 0,002 Accepted
Hasniaty et al (Analysis of Service Quality, Price and Container Distribution on Competitive b) The T-Statistics and P-Values test for H9 can be seen that the T-Statistics value is 1.988 > 1.96
and the P-Values is 0.008 <0.05 so it can be concluded that H9 is accepted meaning that Price significantly influences Competitive Advantage through Consumer Satisfaction .
c) Test the T-Statistics and P-Values for H10, it can be seen that the T-Statistics value is 2.439 >
1.96 and the P-Values is 0.002 <0.05 so it can be concluded that H10 is accepted meaning that the Container Distribution significantly influences Competitive Advantage through Satisfaction Consumer.
Discussion
Based on the research that has been described statistically, in order to obtain a more comprehensive description of the results of the research, it will be reviewed
furthermore each calculated data is in accordance with the hypothesis that has been formulated.
Then the results of the study are described as follows.
1. Based on the previous test, it is known that Service Quality has no significant effect on Customer Satisfaction at PT. Evergreen Shipping Agency Indonesia Makassar branch, which means the hypothesis is rejected. Service quality is a measure of how good the level of service provided is and is able to meet consumer expectations. Service quality can be realized through fulfilling consumer needs and desires and the accuracy of their delivery to match consumer expectations (F. Tjiptono and G. Chandra, 2011). In this case consumer satisfaction does not refer to whether the quality of existing services is good or not, and consumers will continue to use the services of PT. Evergreen Shipping Agency Indonesia Makassar branch without comparing the quality of service with its competitors. This happens because consumers do not look at all indicators, but what is taken into consideration is that the company has reliability in establishing good relationships by serving and providing services according to consumer needs, such as processing incoming orders, when the ship has departed, always checking container positions until when there is a delay or even a change in connecting vessel, the company immediately informs the consumer.
2. Based on the previous test, it is known that price has a significant effect on customer satisfaction, which means that the hypothesis is accepted. The results obtained indicate that there is a competitive price that will increase consumer satisfaction or in other words if PT. Evergreen Shipping Agency Indonesia's Makassar branch can provide appropriate shipping container prices for export so that consumer satisfaction will increase
3. The distribution of containers has a significant effect on customer satisfaction with a positive relationship, which means that the distribution of containers has a significant effect on customer satisfaction so that the hypothesis is accepted. This shows that the availability of containers is a reference for consumers to feel satisfied when using company products and services. Consumers will be satisfied if the containers used are available and clean.
4. This study shows the results that customer satisfaction has a significant effect on competitive advantage with a positive relationship direction. This means that the hypothesis is accepted. This can be interpreted that customer satisfaction is able to increase competitive advantage against competing companies. According to Philip Kotler and Kevin Lane Keller (2014: 177) quoted from the Marketing Management book, it says that consumer satisfaction is a person's feelings of pleasure or disappointment that arise after comparing the performance (outcome) of the service expected to the expected performance.
5. This study shows the results that service quality has no significant effect on competitive advantage at PT. Evergreen Shipping Agency Indonesia Makassar branch, so that in this study the hypothesis was rejected. Service quality is the expected level of excellence and control over excellence to meet customer desires, Tjiptono (2011:59). Meanwhile, according to Porter (2015) competitive advantage is the heart of marketing performance to face competition, but after progress has had an impact on many companies that have lost their minds about competitive advantage that not only try to face competition but struggle to further develop in pursuing business fields.
6. Price has a significant effect on competitive advantage with a positive relationship direction, which means the hypothesis is accepted. This illustrates that price is an important thing in consumer considerations in deciding to use the services of PT. Evergreen Shipping Agency Indonesia Makassar branch or use other shipping services or competitors. Consumers will choose to use services if the price provided is much cheaper or more profitable for consumers. According to Lupiyoadi, 2011) Pricing strategies greatly influence the provision of value, product image and consumer decisions to buy.
7. The results of this study indicate that the distribution of containers has a significant effect on competitive advantage at PT. Evergreen Shipping Agency Indonesia Makassar branch, which means the hypothesis is accepted. More details, namely the higher the level of container distribution, the higher the level of competitive advantage. According to Daryanto (2011) distribution is an organizational device that is interdependent in providing a product for use or consumption by consumers/users.
8. Service quality has no significant effect on competitive advantage through customer satisfaction at the Makassar branch of PT Evergreen Shipping Agency Indonesia so that the hypothesis in this study is rejected. It can be concluded that consumer satisfaction does not refer to whether the quality of existing services is good or not, and consumers will continue to use the services of PT.
Evergreen Shippiing Agency Indonesia Makassar branch without comparing the quality of service with its competitors. Narteh (2017) argues that customers who are satisfied as a result of a service will become disseminators of customer loyalty, which then results in taking premium services, repurchasing intentions, and creating a basic source of competitive advantage. In Johnson and Sirikit's research (2002) which explains the influence of service quality on competitive advantage, customer behavior is also a factor to be considered, where customer perceptions and customer satisfaction on service quality of a service are important components in creating competitive advantage and have a binding impact. a customer towards one company loyally. The results of this study are in line with research.
9. The results of this study indicate that price has a significant effect on competitive advantage through customer satisfaction with a positive relationship direction, which means the hypothesis is accepted. In line with the opinion of Laylani Lenggogeni (2016), a competitive price is a price that is considered appropriate by potential customers because it is in accordance with the benefits of an affordable product, and is expected to be able to compete with the prices of products or services from other companies. Basically consumers want a fair price and in accordance with the product or service
10. Based on previous tests, it is known that container distribution has a significant effect on competitive advantage through customer satisfaction, which means that the hypothesis is accepted. This is in line with the opinion of Subagyo, Nur, & Indra (2018), distribution is the movement or transfer of goods or services from sources to final consumers, consumers or users, through distribution channels, and payment movements in the opposite direction, get to the original manufacturer or supplier.
IV. Conclusion
1. Service quality has no significant effect on customer satisfaction at the PT Evergreen Shipping Agency Indonesia Makassar branch, so whether or not service quality is not a reference for consumer satisfaction, consumers will continue to use services because there is a sense of trust that goods will arrive safely.
2. Price has a significant effect on consumer satisfaction. PT Evergreen Shipping Agency Makassar branch must provide reasonable prices and in accordance with what is obtained by consumers so that a sense of satisfaction arises.
3. Container distribution has a significant effect on consumer satisfaction. Container distribution is a reference for consumers to feel satisfied when using containers and the services of PT.
Evergreen Shipping Agency Indonesia Makassar branch. Distribution is influenced by the transportation system related to the method of shipping or distributing products, product availability, the number of products available from companies for consumers, and waiting time, which means the length of time waiting for the product that consumers want.
Hasniaty et al (Analysis of Service Quality, Price and Container Distribution on Competitive 4. Consumer satisfaction has a significant effect on competitive advantage. Customer satisfaction
must be able to increase competitive advantage against competing companies. PT. Evergreen Shipping Indonesia Makassar branch in an effort to achieve competitive advantage in leading the market, the company must know the various components that can provide satisfaction to its customers, either through increasing customer feelings, as well as exceeding customer expectations for the services provided.
5. Service quality has no significant effect on competitive advantage at PT. Makassar branch of Evergreen Shipping Agency. Service quality is not a reference in competitive advantage.
Consumers continue to use the company's services because of other factors such as loyalty, appropriate prices and containers that are always available and in a condition suitable for use.
6. Prices have a significant effect on competitive advantage at PT. Makassar branch of Evergreen Shipping Agency. The pricing strategy is very influential on providing value, product image and consumer decisions to buy.
7. Container distribution has a significant effect on competitive advantage at PT. Makassar branch of Evergreen Shipping Agency. This means that the higher the level of container distribution, the more stock, so the higher the level of competitive advantage.
8. Service quality has no significant effect on competitive advantage through customer satisfaction at PT. Makassar branch of Evergreen Shipping Agency. consumer satisfaction does not refer to whether the quality of existing services is good or not, and consumers will continue to use the services of PT. Evergreens. Shippiing Agency Indonesia Makassar branch without comparing the quality of service with its competitors.
9. Prices have a significant effect on competitive advantage through customer satisfaction at PT.
Makassar branch of Evergreen Shipping Agency. By setting competitive prices, companies will be able to compete with prices from other companies. And also through competitive prices, a company will get more value which will be a competitive advantage for the company itself.
Companies must also control prices so that they do not harm the company but still provide satisfaction to consumers.
10. Container distribution has a significant effect on competitive advantage through customer satisfaction at PT. Makassar branch of Evergreen Shipping Agency. Good distribution can reduce competitors to replace their products in the target market. Companies must be able to implement a good distribution strategy. The distribution channel will determine how easy it is for consumers to get the desired container. Consumers will choose shipping services according to whether or not containers are available.
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