OF STARBUCKS CUSTOMERS IN SOUTH TANGERANG
By
MARIO HIDAYAT 11403046
BACHELOR’S DEGREE in
BUSINESS ADMINISTRATION
FACULTY OF BUSINESS ADMINISTRATION AND COMMUNICATION
SWISS GERMAN UNIVERSITY The Prominence Tower
Jalan Jalur Sutera Barat No. 15, Alam Sutera Tangerang, Banten 15143 - Indonesia
June 2018
Revision after the Thesis Defense on 25 July 2018
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Mario Hidayat STATEMENT BY THE AUTHOR
Hereby, I declare that this bachelor thesis submitted is my own work and to the best of my own knowledge, it contains no material previously published or written by another person, or material which to a substantial extent has been accepted for the award of any other degree or diploma at any educational institution, except where due acknowledgement is made in the thesis.
Mario Hidayat
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Student Date
Approved by :
Junaidi Sinaga, ST, MM, MBA
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Thesis Advisor Date
Dr. Nila K. Hidayat, SE, MM
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Dean of Faculty of Business Administration Date
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Mario Hidayat ABSTRACT
Analyzing The Impact of Marketing Mix, Brand Image and Service Quality Towards Customer Loyalty with The Mediator of Customer Satisfaction : A case of Starbucks
Customers in South Tangerang By :
Mario Hidayat
Junaidi Sinaga ST, MM, MBA, Advisor
SWISS GERMAN UNIVERSITY
The purpose of this research is to analyze the impact of marketing mix that consist of 4Ps, brand image and service quality towards customer loyalty of Starbucks customers with the mediator of customer satisfaction. And to identify those factors as well as to know how significant those factors impact on customer loyalty through the mediator of customer satisfaction. Finally this thesis determines the recommendation and strategy for Starbucks to compete at this highly competition in coffeehouses industry with maintain and maximize the factors in order to build strong customer loyalty of Starbucks customers. This study is descriptive study that using quantitative approach, primary quantitative data collected through questionnaires of 130 respondents, while the secondary data is collected from various textbooks, journals, articles, news and the previous literatures. The quantitative data was analyzed using SPSS software and path diagram with SmartPLS3 as a tool. The result of structural analysis shows that variable product, promotion, place, brand image, service quality has a significant impact towards customer satisfaction while variable price has no significant impact towards customer satisfaction as well as variable customer satisfaction has a significant impact towards customer loyalty in case of Starbucks.
Keywords : Coffeehouse , Starbucks Indonesia, Marketing Mix, 4 P’s, Brand Image, Service Quality, Customer Satisfaction and Customer Loyalty
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Mario Hidayat
© Copyright 2018 by Mario Hidayat All rights reserved
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Mario Hidayat DEDICATION
This thesis work is dedicated to my family and many friends for their endless love, support, and encouragement
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Mario Hidayat ACKNOWLEDGEMENTS
Firstly, I thank God for all the blessings that makes this thesis could be finish on time.
The greatest appreciation to my thesis advisor, Mr. Junaidi Sinaga, ST, MM, MBA for the guidances and advices during the development of this thesis work. Thank you for your time, attention, and patience. And Thank to Mr. Fiter Abadi, BE, MBA for his assistance on my thesis, insightful comment and support as well as all of the lecturers that have contributed to my knowledge and teach me in Swiss German University.
Special Thank to Jesslyn, Evangelyn, Nicolas, Richard, Bernard, Nadia, Johan, Rony, Nicholas, Nico and everyone whose names I cannot mention due to the limitation of space and time for the support to finish this study since semester one in Swiss German University. I would like to give my sincere thanks to all my classmates for supporting each other as well as encouraging words and for sharing opinion and suggestions for this 4 years in SGU. Last but not least, special thank to my KAWAN LAMA friends Bella, Fefe, Geraldo, Ryan, Binar, Evan, Grace, Marsya and all of my friends from senior high school whose supported and encouraged me during my thesis process which I cant mention one by one.
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Mario Hidayat TABLE OF CONTENTS
STATEMENT BY THE AUTHOR ... 2
ABSTRACT ... 3
DEDICATION ... 5
ACKNOWLEDGEMENTS ... 6
TABLE OF CONTENTS ... 7
LIST OF FIGURES ... 11
LIST OF TABLE ... 12
CHAPTER 1 – INTRODUCTION ... 14
1.1Background ... 14
1.2Coffee houses Industry in Global ... 16
1.3 Coffee houses Industry in Indonesia ... 17
1.4 Problem Identification of Starbucks in Global ... 19
1.5 Problem Identification of Starbucks in Indonesia ... 19
1.6 Research Problem ... 20
1.7 Research Questions ... 21
1.8 Research Objective ... 21
1.9 Scope and Limitation ... 21
1.10 Significance of Study ... 22
1.11 Thesis Structure ... 22
CHAPTER 2 – LITERATURE REVIEW ... 23
2.1 Conceptual Framework ... 23
2.2 Theoretical Foundation ... 24
2.3 Marketing ... 24
2.4 Marketing Mix ... 25
2.5 Marketing Mix 4Ps ... 26
2.6 Marketing Mix 4 Ps Evolution ... 27
2.7 The Extended 7 Ps ... 27
2.7.1 Product ... 28
2.7.2 Price ... 30
2.7.3 Promotion ... 30
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Mario Hidayat
2.7.5 People ... 33
2.7.6 Physical Evidence ... 33
2.7.7 Process ... 34
2.8 Brand ... 34
2.8.1 Brand Image ... 34
2.9 Service Quality ... 35
2.9.1 Responsiveness ... 36
2.9.2 Reliability ... 36
2.9.3 Tangible ... 36
2.9.4 Assurance... 36
2.9.5 Emphaty ... 37
2.10 Customer Satisfaction ... 37
2.11 Customer Loyalty... 39
2.11.1 Benefits of Customer Loyalty ... 40
2.11.2 Important facts of loyal customers for a company ... 40
2.12 Previous Study ... 41
2.13 Study Differences... 42
CHAPTER 3 – RESEARCH METHOD ... 45
3.1 Type of Study ... 45
3.2 Unit analysis and Observation ... 45
3.3 Sampling Design ... 46
3.3.1 Population & Sample Target ... 46
3.3.2 Sampling Method ... 46
3.3.3 Sampling Size ... 47
3.4 Location & Time Frame of Study ... 48
3.5 Data Sources & Collection ... 49
3.5.1 Type of Data ... 49
3.5.2 Data collection Method ... 49
3.5.3 Questionnaire Structure ... 50
3.6 Research Model ... 51
3.7 Hypotheses ... 52
3.8 Variable Operationalization ... 53
3.9 Data Processing Procedures ... 60
3.9.1 Data Preparation ... 60
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3.9.3 Validity Test ... 61
3.9.4 Reliability Test ... 66
3.10 Data Analysis Technique... 69
3.10.1 Descriptive Statistic Analysis ... 70
3.10.2 Inferential Statistic Analysis ... 70
CHAPTER 4 – ANALYSIS AND DISCUSSION ... 75
4.1 Company Background ... 75
4.1.1 Brief Company Profile ... 75
4.1.2 Starbucks Coffee Logo ... 75
4.1.3 Starbucks Coffee in Indonesia ... 76
4.2 Respondent Profile ... 77
4.2.1 Age ... 78
4.2.2 Gender ... 78
4.2.3 Occupation ... 79
4.2.4 Monthly Income ... 79
4.2.5 Frequency of Visit per Month ... 80
4.3 Descriptive Statistic Analysis ... 81
4.4 Inferential Statistic Analysis... 81
4.4.1 Measurement Model ... 81
4.4.2 Structural Model ... 86
4.5 Path Diagram ... 95
4.6 Hypothesis ... 97
4.6.1 Hypothesis #1 ... 98
4.6.2 Hypothesis #2 ... 99
4.6.3 Hypothesis #3 ... 100
4.6.4 Hypothesis #4 ... 101
4.6.5 Hypothesis #5 ... 102
4.6.6 Hypothesis #6 ... 103
4.6.7 Hypothesis #7 ... 104
4.7 Respondent Profile Result ... 105
CHAPTER 5 – CONCLUSION & RECOMMENDATIONS ... 106
5.1 Conclusion ... 106
5.2 Recommendation ... 108
5.3 Recommendation for Further Study... 112
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Mario Hidayat
REFERENCES ... 114
APPENDIX ... 121
A. Questionnaires ... 121
B. T-Value Calculator Result ... 125
C. Construct Reliability and Validity ... 125
D. Path Coefficients Score ... 125
E. R Square ... 126
F. Path Coefficient and R Square Model ... 126
G. Questionnaire Result ... 127
H. Budget ... 137
CURRICULUM VITAE ... 138
PLAGIARISM RESULT ... 140
