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Analysis of The Effect of Brand Image and Perceived Quality on Customer Loyalty Through Customer Satisfaction as an Intervening
Variable (Case Study PT. Sempurna Sukses Sejati)
SherlyInternational Marketing, Bina Nusantara University [email protected]
ABSTRAK
To improve the company's performance in overcoming the tight competition in the stationery industry at this time, research should be conducted on how the brand image of ESCO products in the minds of consumers and how the perception of the quality of ESCO products according to consumers who use them. This research was conducted to find out how far the ESCO brand products have developed in the community and whether they can compete in the market with various brands and similar products. Therefore, this study also wants to analyse the extent to which consumers are loyal to the brand and how far the satisfaction has been obtained. Consumer satisfaction is something that can encourage consumers to be more loyal to a brand and consumer loyalty to the brand is very important for the company because it will bring long-term profit and benefits to the company's products in the future.
Keyword: Brand Image, Perceived Quality, Customer Satisfaction, Customer Loyalty
A. INTRODUCTION
From time to time, stationery has undergone various kinds of evolution and was created to be more sophisticated and more comfortable to use because stationery has been one of the basic human needs since long ago. Starting from only using stones, wood, and animal bones that are tapered at the end to be used as tools for writing in the stone age. Now stationery is increasingly sophisticated and has been better designed to be more comfortable when used. Because stationery is an important part of human daily life, the level of need and demand for stationery in the community has a high percentage, therefore there are also many companies that stand up and try to run a business in the stationery category as a business.
49 Quoted from (CekIndo, 2020) revenue in the stationery industry has reached IDR 11.7 trillion in 2018 with an annual growth rate of 17.8 percent. Indonesia, Thailand, and the Philippines, China are countries known for their quality stationery production for local consumption and export. Indonesia's stationery portfolio is diverse, ranging from the cheapest to the most expensive and exclusive. For products that are classified as luxury, most of them come from imported goods. The target market for the stationery industry is quite broad, such as employees, students, shops, students, or in the community. Some examples of stationery brands that are well known in Indonesia are Faber-Castle, Standard, Faster, Pilot, Snowman, Montana, Deli, Esco, Joyko, Kenko, etc. Seeing the many opportunities, not a few entrepreneurs who began to move in the field of stationery both local and imported stationery.
B. THEORY 2.1 Brand
Brand image provides encouragement to consumers to look further about the product and connect with the product brand, consumer brand image is the result of marketing activities carried out by the company to prove to customers that products with this brand are worth it to buy to meet their needs and brand image plays an important role in the survival of a company (Liu et al., 2020). Brand image greatly affects customer satisfaction, customer satisfaction is considered very important for the company because when the customer is satisfied in using a product or service, the customer will not hesitate to buy the product or service when needed (Sandelands, 2017). Consumers will believe in a product or service if the product or service has a good brand image, and it can make it easier for consumers to make choices and feel
50 comfortable when buying a product. Brand image can be measured into three items, namely: value, realized quality, and uniqueness. According to (Sanny et al., 2020) brand image is an overall representation of product information and knowledge that leads to the perception of the brand itself, brand image is also associated with the beliefs and perceptions held by consumers about a brand.
2.2 PERCEIVED QUALITY
Quality is a consumer assessment of a product or service that contains an overall superiority or superiority compared to others. The superiority of a product or service is the key to getting a high perception of quality in the minds of consumers (Gusti &
Made, 2018). Perceived quality has a positive effect on consumer willingness to make purchases. According to (Farida Indriani, 2018), positive perceived quality will encourage consumers to make purchases and create loyalty to a brand. If perceived quality gets a negative response from consumers, it will directly result in a decrease in the number of sales and will have an impact on the difficulty of the product or service surviving in the market. This greatly affects the performance of a company;
therefore, it is important for companies to research consumer perceptions about marketed products and brands.
According to (Lee & Chen-Yu, 2018), consumer perceptions of the quality of a product or service come from consumer perceptions of price. The form of perceived quality according to (Verdilla & Albari, 2018), can be seen in terms of price, shape, style choice, product quality, and other attributes. The concept of perceived quality according to (Schnettler & Lobos, 2019) is a consumer assessment of the overall superiority of the product. Where the concept listed explains that the essence of consumer perception is when they use a product and assess the product and then compare it with the expectations that were previously expected. Then according to
51 (Guo et al., 2018), the concept of perceived quality is a subjective evaluation of product quality. This is an important component that comes from the user experience of products and services.
2.3 CUSTOMER SATISFACTION
Customer satisfaction shows the achievement of a company in helping consumers to meet their satisfaction, needs, wants, and demands (Rosli & Nayan, 2020). According to (Hayati et al., 2020), customer satisfaction is a behavior shown by consumers regarding goods or services that have been received and used, in other words, satisfaction is a choice after evaluating the assessment of certain transactions.
Customer satisfaction according to (Mahsyar & Abidin, 2020) is a feeling of pleasure or disappointment with a product or service that has been purchased and the benefits are felt directly. If the product performance can exceed customer expectations, it will directly give customers a feeling of satisfaction.
2.4 CUSTOMER LOYALTY
Loyal customers will tend to buy more often and recommend products from that brand to people around them (Othman & Harun, 2020). The tendency of consumer behavior to prefer one brand over another due to customer satisfaction with the products and services marketed by the company is the definition of brand loyalty according to (Vuong, 2019). In addition, the commitment to repurchase a preferred product or service consistently will create customer loyalty not only at this time, but also in the future. According to (Romdonny et al., 2019), consumer attitudes and behavior themselves are things that greatly affect customer satisfaction. There are three characteristics that can describe customer loyalty, namely the intention to repurchase, consistent purchases and how long they have been customers, providing
52 information to others about the product and recommending it. These all indicate that customer loyalty holds the intention to repurchase products or services from the same company, and the intention to recommend them to others (Chen & Liu, 2017).
C. METHODS OF IMPLEMENTATION
This research will use quantitative research. Quantitative research methods are concerned with measuring and analyzing variables to obtain results. In this study, there will be three types of variables to be studied, namely:
1. Independent variables are Brand Image (X1) and Perceived Quality (X2).
2. The Dependent Variable in this study is Customer Loyalty (Z).
3. The Intervening Variable in this study is Customer Satisfaction (Y).
The data collection method used for this research is to use literature study and questionnaires and the sampling method will use Probability Sampling. The type of sampling that will be selected is Simple Random Sampling and the calculation technique that will be used in this study is slovin. The data analysis methods used in this study are validity test, reliability test, normality test, multicollinearity test, heteroscedasticity test and path analysis test or commonly called path analysis test.
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D. RESULT AND DISCUSSION
Table 1. Results of Brand Image Validity Test
Reliability Statistics Cronbach's
Alpha N of Items
,774 6
No. R Counts Marks R Table Result
1 0,613 > 0.1966 Valid
2 0,710 > 0.1966 Valid
3 0,773 > 0.1966 Valid
4 0,610 > 0.1966 Valid
5 0,682 > 0.1966 Valid
6 0,768 > 0.1966 Valid
Reliability Statistics Cronbach's
Alpha N of Items
,724 5
No. R Counts Marks R Table Result
1 0,770 > 0.1966 Valid
2 0,651 > 0.1966 Valid
3 0,783 > 0.1966 Valid
4 0,737 > 0.1966 Valid
5 0,318 > 0.1966 Valid
No. R Counts Marks R Table Result
1 0,810 > 0.1966 Valid
2 0,505 > 0.1966 Valid
3 0,779 > 0.1966 Valid
4 0,828 > 0.1966 Valid
5 0,543 > 0.1966 Valid
Reliability Statistics Cronbach's
Alpha N of Items
,645 5
Tabel 5
Result of Customer Satisfaction Validity
54 Tabel 6 Result of Customer Loyalty Validity Test
Tabel 7 Result of Normality Test
Tabel 8 Result Test Multikoliearitas
Reliability Statistics Cronbach's
Alpha N of Items
,838 4
No. R Counts Marks R Table Result
1 0,731 > 0.1966 Valid
2 0,851 > 0.1966 Valid
3 0,817 > 0.1966 Valid
4 0,877 > 0.1966 Valid
Brand Image (X1)
Ho VIF = 1.971 < 10 Ho accepted and there is no multicollinearity
Ho Tolerance = 0.507> 0.10 Ho accepted there is no multicollinearity
Perceived Quality (X2)
Ho VIF = 1.154 < 10 is accepted and there is no multicollinearity
Ho Tolerance = 0.866 > 0.10 Ho accepted there is no multicollinearity
Customer Satisfaction (Y)
Ho VIF = 2.057 < 10 Ho accepted and there is no multicollinearity
Ho Tolerance = 0.486 > 0.10 Ho accepted there is no multicollinearity
The data above shows that the results of the normality test test using the Kolmogorov- smirnov method are obtained with an asymp value. Sig. (2-tailed) of 0.200 which means greater than the alpha value of 0.05 so that it can be concluded that the data is normally distributed, or Ho is accepted.
55 Tabel 9 Result Test of Heterokedastisitas
Tabel 10 Result Test Path Analysis E.
Brand Image (X1)
Ho = 0.059> 0.05 there is no heteroscedasticity Perceived Quality (X2)
Ho = 0.736 > 0.05 there is no heteroscedasticity Customer Satisfaction (Y)
Ho = 0.070 > 0.05 there is no heteroscedasticity
Following the conclusion of the table and structural model above, these influences can be explained as follows:
1.Brand Image (X1) directly has a significant effect on Customer Satisfaction (Y) of 0.427.
2.Perceived Quality (X2) directly has a significant effect on Customer Satisfaction (Y) of 0.225.
3.Brand Image (X1) directly has a significant effect on Customer Loyalty (Z) of 0.275.
4.Perceived Quality (X2) directly has a significant effect on Customer Loyalty (Z) of 0.248.
5.Customer Satisfaction (Y) directly has a significant effect on Customer Loyalty (Z) of 0.181.
6.Brand Image (X1) indirectly has a significant influence on Customer Loyalty (Z) through Customer Satisfaction (Y) of 0.365.
7.Perceived Quality (X2) indirectly has a significant effect on Customer Loyalty (Z) through Customer Satisfaction (Y) of 0.243.
8.Brand Image (X1) and Perceived Quality (X2) indirectly have a significant influence on Customer Loyalty (Z) through Customer Satisfaction (Y).
Gambar 1 Structure Models
56 D. CONCLUSION AND SUGGESTION
4.1 CONCLUSION
Based on the results of research obtained from data processing, namely, to determine whether there is an influence between Brand Image and Perceived Quality on Customer Loyalty through Customer Satisfaction as an intervening variable on ESCO brand products in Jakarta, the following are conclusions based on the results of data analysis that has been done previously:
1. Brand Image has a significant influence on Customer Satisfaction, if the company builds a good and positive brand image, it can trigger an increase in customer satisfaction in ESCO brand stationery products.
2. Perceived Quality has a significant influence on Customer Satisfaction, if the perception of quality is positive in the minds of consumers, it will also influence increasing customer satisfaction with ESCO brand stationery products.
3. Customer Satisfaction has a significant influence on Customer Loyalty, if customer satisfaction is good and increases, it will have an influence on consumer loyalty to ESCO brand stationery products.
4. Brand Image has a significant influence on Customer Loyalty, if the brand image is well built it will increase consumer loyalty to ESCO brand stationery products.
5. Perceived Quality has a significant influence on Customer Loyalty, if the perception of quality is good according to consumers, it will have an impact on increasing the level of consumer loyalty to ESCO brand stationery products.
6. Brand Image has a significant indirect effect on Customer Loyalty, through Customer Satisfaction. If the brand image created in the minds of consumers can be said to be good, it will increase consumer loyalty through customer satisfaction.
7. Perceived Quality has a significant indirect effect on Customer Loyalty through Customer Satisfaction. If the perception of quality is well developed by the company, it will affect consumer loyalty through consumer satisfaction.
8. Brand Image and Perceived Quality have an indirect effect on Customer Loyalty through Customer Satisfaction, which means that the better a brand image and perceived quality to consumers will have an influence on consumer loyalty and can increase consumer satisfaction with ESCO brand stationery products.
57 4.2 SUGGESTION
The following are some suggestions that the author can convey to PT Sempurna Sukses Sejati related to ESCO brand stationery products referring to the results of data processing and conclusions are as follows:
1. Brand Image is one of the most important roles in marketing products in a market full of competition. Companies need to create marketing strategies to improve the impression of a good brand image in the eyes of consumers by creating attractive logo designs, conducting effective promotions, using influencer services, utilizing social media, and improving the quality-of- service products so that the Brand Image at PT Sempurna Sukses is more easily recognized and remembered by consumers. For example, companies can carry out promotions in e-commerce such as Tokopedia, Shopee, Lazada, etc. while using influencer services to introduce and communicate company products to customers as well as inform customers that ESCO stationery can now be more easily obtained in various kinds of e-commerce with quality and prices that are suitable for customers, so that customers can be a little more distracted from competitors' stationery products.
2. Perceived Quality is part of the way to create a good brand image because consumers will certainly lead to quality and if they feel that a product has a quality that matches their expectations, consumers will no longer hesitate when they want to buy a product. The way to improve the quality of Perceived Quality can be by making product designs that are comfortable to use so that consumers are more comfortable with the product and making several product variant innovations so that consumers can feel more benefits from the products made by PT Sempurna Sukses Sejati.
3. Customer Satisfaction is customer satisfaction seen as the key to retaining existing customers and building long-term relationships with customers.
Companies must manage good service quality and not only product quality to compete and maintain customer satisfaction. Service quality has an important essence for the company's strategy to sustain itself and achieve success in the face of competition. Because higher service quality results in higher customer satisfaction. If the service received or felt is as expected, then the service quality is perceived as satisfactory.
58 4. Customer Loyalty is an inherent commitment and leads to repurchase or repurchase and reuse of products from certain brands. Companies must have the awareness to provide added value to their customers in the form of experiences. Companies must gain an understanding of customers to provide customer experience. With that knowledge the company can understand customer emotions to be able to create deep preferences for an experience so that customers will feel satisfied with the product and in the end, customers can become loyal to the company and by providing customer experience the company can create a competitive advantage.
