CUSTOMER LOYALTY IN RESTAURANT: CASE STUDY RESTAURANT X
By
Omar Praditya Djajadiningrat 13312025
BACHELOR’S DEGREE in
BUSINESS ADMINISTRATION – HOTEL AND TOURISM MANAGEMENT CONCENTRATION
FACULTY OF BUSINESS ADMINISTRATION AND HUMANITIES
SWISS GERMAN UNIVERSITY EduTown BSD City
Tangerang 15339 Indonesia
August 2016
Revision after the Thesis Defense on July 26, 2016
Omar Praditya Djajadiningrat STATEMENT BY THE AUTHOR
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.
Omar Praditya Djajadiningrat
____________________________________________
Student Date
Approved by:
Oqke Prawira, SST, Msi, Par.
____________________________________________
Thesis Advisor Date
Eric Jos Nasution, MBA, MA, Ph.D.
____________________________________________
Dean Date
Omar Praditya Djajadiningrat ABSTRACT
ANALYZING SERVICE QUALITY AND PRICE IMPACT TOWARDS CUSTOMER LOYALTY IN RESTAURANT: CASE STUDY RESTAURANT X
By
Omar Praditya Djajadiningrat Oqke Prawira, SST, Msi, Par., Advisor
SWISS GERMAN UNIVERSITY
The restaurant industry, this part of the hospitality industry is one of the biggest and rapid growing industries in the world. In Jakarta, which is the capital city of Indonesia the number of restaurant keep growing every year creating fierce competition between restaurants. In order to compete restaurants increase their quality in order to reach customer satisfaction, nowadays restaurant aim higher than just customer satisfaction they also aim for the customer loyalty by increasing the quality, and price of their service, food and beverage. This research studies the impact of service quality and price to the customer loyalty. The research type is quantitative with 97 samples from restaurant X; the data collecting instrument is questionnaire. All the data then processed using SPSS. Based on the data research collected it is concluded that service quality and price have a positive significant impact towards customer loyalty 46% and 52%.
Keywords: Service Quality, Price, Customer Loyalty, Restaurant
Omar Praditya Djajadiningrat
© Copyright 2016
By Omar Praditya Djajadiningrat All rights reserved
Omar Praditya Djajadiningrat DEDICATION
I dedicate this work for myself and my family especially my mother, Novita Tri Dewanti and my father, Dewananda Wardana.
Omar Praditya Djajadiningrat First of all, I wish to thank Allah SWT. for giving me the blessing of knowledge, and strength that help me in finishing this research. I would like to show gratitude and appreciation for the following people that have help me in the process of this research :
My family, for all their support and understanding.
My thesis advisor, Oqke Prawira, SST, Msi, Par. That have guide me in the process of this research.
Restaurant X that have given me the opportunity to do this research in their restaurant.
My friends and classmates in HTM, for their support, and opinion that help me in this research.
All lectures and staff of the Swiss German University.
.
Omar Praditya Djajadiningrat Page Contents
STATEMENT BY THE AUTHOR ... 2
ABSTRACT ... 3
DEDICATION ... 5
ACKNOWLEDGEMENTS ... 6
TABLE OF CONTENTS ... 7
LIST OF TABLES ... 10
LIST OF FIGURES ... 11
CHAPTER 1 ... 12
INTRODUCTION ... 12
1.1 BACKGROUND ... 12
1.2 RESEARCH PROBLEM ... 13
1.3 RESEARCH OBJECTIVE ... 14
1.4 RESEARCH QUESTION ... 14
1.5 SIGNIFICANCE OF STUDIES ... 14
1.6 SCOPE AND LIMITATION ... 14
1.7 THESIS STRUCTURE ... 15
CHAPTER 2 ... 17
LITERATURE REVIEW ... 17
2.1 FRAMEWORK OF THINKING ... 17
2.2 LITERATURE REVIEW ... 18
2.2.1 Tourism ... 18
2.2.2 Hospitality ... 18
2.2.2.3 History of the hospitality industry ... 18
2.2.2.4 Operating Sectors of Tourism and Hospitality Industry ... 19
2.2.5 Lodging Industry ... 19
2.2.5.1 History of lodging ... 20
2.2.5.2 Type of lodging ... 20
2.2.6 Foodservice industry ... 20
2.2.6.1 Food service segments ... 21
2.2.7 Service ... 21
Omar Praditya Djajadiningrat
2.2.7.2 Service quality ... 23
2.2.8 SERVQUAL ... 23
2.2.9 Customer Loyalty ... 24
2.2.9.1 Customer loyalty measurement framework ... 26
2.2.9.2 Measuring customer loyalty ... 27
2.2.9.3 Relation of service quality and price with customer loyalty ... 28
2.2.10 Price ... 28
2.2.1 Relation of price and customer loyalty ... 29
2.3 PREVIOUS STUDY ... 29
2.4 DIFFERENCE FROM PREVIOUS RESEARCH ... 31
2.5 RESEARCH MODEL ... 33
2.6 HYPOTHESIS ... 33
CHAPTER 3 ... 34
RESEARCH METHODOLOGY ... 34
3.1 RESEARCH PROCESS ... 34
3.2 TYPE OF RESEARCH ... 35
3.3 TYPE OF DATA ... 35
3.4 RESEARCH INSTRUMENT ... 36
3.5 OPERATIONAL VARIABLE ... 36
3.6 POPULATION AND SAMPLE ... 37
3.6.1 POPULATION ... 37
3.6.2 SAMPLE SIZE ... 37
3.6.3 SAMPLING TEHNIQUE ... 38
3.7 DATA TESTING ... 38
3.7.1 PRE-TESTING ... 38
3.7.2 POST-TESTING ... 38
3.8 RELIABILITY AND VALIDITY ... 39
3.8.1 RELIABILITY ... 39
3.8.2 VALIDITY ... 40
3.9 DATA ANALYSIS ... 40
3.9.1 Normality ... 41
3.9.2 Heteroscedasticity ... 41
3.9.3 Hypothesis testing ... 42
Omar Praditya Djajadiningrat
RESULT AND DISCUSSION ... 43
4.1 COMPANY PROFILE ... 43
4.2 RESPONDENT PROFILE ... 44
4.2.1 Gender ... 44
4.2.2 Age ... 45
4.2.3 Occupation ... 46
4.2.4 Monthly Income ... 47
4.3 STATISTICAL ANALYTIC ... 48
4.3.1 Pre – Test ... 48
4.3.1.1 Reliability ... 48
4.3.2 Post – test ... 52
4.3.2.1 Reliability ... 52
4.3.2.2 Validity ... 53
4.3.2.3 Descriptive analysis ... 57
4.4 REGRESSION ANALYSIS ... 58
4.4.1 Classical assumption tests ... 58
4.4.1.1 Normality test ... 58
4.4.1.2 Heteroscedasticity test ... 59
4.4.2.1 T –test ... 60
4.4.2.2 F test ... 61
4.4.2.5 Coefficient determination table ... 61
4.5 HYPOTHESIS ANALYSIS ... 62
CHAPTER 5 ... 63
CONCLUSIONS AND RECOMMENDATION ... 63
5.1 CONCLUSIONS ... 63
5.2 RECOMMENDATION ... 65
5.2.1 Company recommendation ... 65
5.2.1 Future research recommendation ... 66
GLOSSARY ... 67
REFERENCES ... 68
APPENDICES ... 69
CURRICULUM VITAE ... 94
