A CASE STUDY OF 'Kila Kila by Akasya' - SGU Repository

THE IMPACT OF CONSUMER-BASED BRAND EQUITY ON CUSTOMER LOYALTY: A CASE STUDY OF ‘Kila Kila by

Akasya’

By

Nida Thahirah Sari 11503037

BACHELOR’S DEGREE in

BUSINESS ADMINISTRATION – HOTEL AND TOURISM MANAGEMENT Concentration

FACULTY OF BUSINESS AND COMMUNICATION

SWISS GERMAN UNIVERSITY

The Prominence Tower

Jalan Jalur Sutera Barat No. 15, Alam Sutera Tangerang, Banten 15143-Indonesia

Revision after the Thesis Defense on 11 July 2019

Nida Thahirah Sari I hereby declare that this submission is my own work and to the best of my knowledge, it contains no material previously published or written by another person, nor 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.

Nida Thahirah Sari

_____________________________________________

Student

Date

Approved by:

Gemala P. Garibaldi, S.Psi, M. Bus, M. Pd.

_____________________________________________

Thesis Advisor Date

Dr. Nila K. Hidayat SE., MM.

_____________________________________________

Dean Date

Nida Thahirah Sari

ABSTRACT

THE IMPACT OF CONSUMER-BASED BRAND EQUITY ON CUSTOMER LOYALTY: A CASE STUDY OF ‘KILA KILA BY AKASYA’

By

Nida Thahirah Sari,

Gemala P. Garibaldi, S.Psi, M. Bus, M. Pd.

SWISS GERMAN UNIVERSITY

Restaurant industry is considered as a promising sector in Jakarta, especially Indonesian cuisine. Hence, it creates a highly competitive environment in the market. To survive, restaurant industry need to use strategies one way to do it by create a loyalty of the customer using a brand equity. This study aim to identify whether or not CBBE and its each dimensions have an impact on customer loyalty. Questionnaire was completed by 100 customers who have been visited Kila Kila by Akasya at least once. Multiple regressions were used to test the impact of CBBE on customer loyalty in Kila Kila by Akasya. The findings shows that brand identification of CBBE is the strongest dimension that affects the customer loyalty of Kila Kila by Akasya, followed by lifestyle-congruence, physical attribute and staff behavior of CBBE. Meanwhile, the ideal-self congruence does not affect the customer loyalty of Kila Kila by Akasya. This study also provides the management with the several suggestions in implementing CBBE to achieve customer loyalty in Kila Kila by Akasya.

Keywords: Consumer-Based Brand Equity, Customer Loyalty, Restaurant Industry.

Nida Thahirah Sari

© Copyright 2019 by Nida Thahirah Sari

All rights reserved

Nida Thahirah Sari

DEDICATION

I dedicate this work to my parents, the reason of what I become today.

Nida Thahirah Sari My deepest gratitude and praise to the Almighty Allah SWT who created and nurture of in this transitory world also for giving me strength and guidance to do this assignment successfully, and throughout four years of university.

I want like to present this dissertation to my parents for their endless love, pray, and support. Thank you, Pa and Ma for everything you have done for me.

I would like to express my gratitude and highest respect to my thesis supervisor, Ms. Gemala P. Garibaldi, S.Psi, M. Bus, M. Pd. for the patient guidance, encouragement, and advice she has provided throughout the thesis writing process. I will remember the ‘red ink’ syndrome, but I’m grateful for having you to be my advisor.

I want to thank and gratitude to Ms. Aliyah Latief and Mr. Kasya Latief as the owner of Kila Kila by Akasya also Mr. Armaya as the restaurant manager for giving me permission doing my research and giving much knowledge also an inspiration for my thesis.

To all Swiss German University lecturers, Hotel and Tourism Management batch 2015 family and friends that I cannot mention one by one, thank you for being supportive and caring throughout the past four years and to Galendra for becoming a source of happiness while facing this complicated thesis working.

Last, for all people who have not mentioned above, thank you for all your kindness and

support towards me.

Nida Thahirah Sari

Table of Contents

STATEMENT BY THE AUTHOR ... 2

ABSTRACT ... 3

DEDICATION ... 5

ACKNOWLEDGEMENTS... 6

LIST OF FIGURE ... 10

LIST OF TABLE ... 11

CHAPTER 1 - INTRODUCTION ... 12

1.1 Background ... 12

1.2 Research Problem ... 18

1.3 Research Objectives ... 18

1.4 Significance of study ... 19

1.5 Research Question... 19

1.6 Scope and Limitation ... 20

CHAPTER 2 –LITERATURE REVIEW ... 21

2.1 Framework of Thinking ... 21

2.2 Brand Equity ... 23

2.2 Consumer-Based Brand Equity ... 23

2.2.1 Consumer-Based Brand Equity Definition ... 23

2.2.2 Consumer-Based Brand Equity Dimensions ... 24

2.3 Factors affecting Customer Based Brand Equity (CBBE) ... 26

2.4 Customer Loyalty ... 27

2.4.1 Customer Loyalty Definition ... 27

2.4.2 Dimension of Customer Loyalty ... 28

2.5 Factors Affecting Customer Loyalty ... 29

2.6 Restaurant ... 30

2.6.1 Casual Dining ... 30

2.7 The Impact of Consumer-Based Brand Equity towards Customer Loyalty ... 31

2.8 Previous Study ... 32

2.9 Difference with Previous Study ... 34

2.10 Research Model ... 34

2.11 Hypothesis ... 34

CHAPTER 3 – RESEARCH METHODS ... 36

Nida Thahirah Sari

3.2 Unit Analysis and Observation ... 37

3.3 Sampling ... 37

3.3.1 Population and Sample ... 37

3.3.2 Sampling Method ... 37

3.3.3 Sample Size ... 38

3.4 Timeframe of Study ... 39

3.5 Data Source and Collection ... 39

3.5.1 Primary Data ... 39

3.5.2 Secondary Data ... 40

3.5.3 Data Collection Method ... 40

3.6 Operational Variable ... 44

3.7 Data Processing Procedure ... 49

3.7.1 Data Screening ... 49

3.8 Data Analysis Technique ... 49

3.9 Classical Assumption ... 51

3.10 Multiple Linear Regression Analysis ... 52

CHAPTER 4 – RESULT AND DISCUSSION ... 54

4.1 Company Profile – Kila kila by Akasya ... 54

4.2 Validity and Reliability Pre-test ... 56

4.2.1 Validity Pre-test ... 57

4.2.2 Reliability Test ... 58

4.3 Post-test ... 59

4.3.1 Respondent Profile ... 59

4.4 Classical Assumption Test ... 69

4.4.1 Normality Test ... 69

4.4.2 Heteroscedasticity Test ... 70

4.4.3 Multicollinearity Test ... 72

4.4.4 Multiple Regression Test ... 72

4.5 Discussion ... 77

BAB 5 – CONCLUSION AND RECOMMENDATION ... 80

5.1 Conclusion ... 80

5.2 Recommendations ... 81

5.2.1 Recommendations for Kila Kila by Akasya ... 81

Nida Thahirah Sari

5.2.2 Recommendations for future research ... 82

GLOSSARY ... 82

REFERENCES ... 84

APPENDIX ... 91

APPENDIX 1 - QUESTIONNAIRE ... 91

APPENDIX 2 – POSTTEST ANSWERS ... 99

APPENDIX 3 – PHOTOS OF KILA KILA BY AKASYA ... 103

APPENDIX 4 - IN-DEPTH INTERVIEW ... 107

CURRICULUM VITAE ... 109