By
Marsella Giovani Aliman 11503044
BACHELOR’S DEGREE in
BUSINESS ADMINISTRATION - HOSPITALITY 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
July – 2019
Revision after the Thesis Defense on 9 July 2019
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.
Marsella Giovani Aliman
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Student Date
Approved by:
Dr. Nila K. Hidayat S.E, M.M
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Thesis Advisor Date
Dr. Nila K. Hidayat S.E, M.M
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Dean Date
ABSTRACT
THE IMPACT OF INNOVATION AND BRAND AWARENESS TO INCREASE CUSTOMER LOYALTY, CASE STUDY: CATURRA ESPRESSO IN SURABAYA
By:
Marsella Giovani Aliman Dr. Nila K. Hidayat S.E, M.M.
SWISS GERMAN UNIVERSITY
Nowadays, the industry of café is starting to grow especially in Surabaya area. Since 2015, there are more than a hundred of coffee shop that opened in Surabaya and they keep increasing until these days. Hence, the competition level in coffee shop industry is in the high-level and millennial generations nowadays are more looking the restaurants with new concept of innovation. Some of the previous studies believe that innovation has an important role for gaining the loyalty of the customers. Not only through innovation, brand awareness also plays an important part for affecting the customer to become loyal. Caturra Espresso is used as the unit analysis in this research since the number of their visitors and revenue is decreasing from 2015 until now. A questionnaire was distributed to the 160 respondents who are the loyal customer of Caturra Espresso. Classical assumption test and multiple regression analysis were conducted in this research to analyze the data using SPSS program. This research found that innovation and brand awareness has an impact by 65.9% to increase the customer loyalty in Caturra Espresso while the other 34.1% are influenced by the other factors that not observed in this study. Futhermore, this reseach can be used for the management of Caturra Espresso to increase or maintain the number of their loyal customer and also help them to increase their revenue. While for futher studies, can also use this result for further research of the other variables that are not been observed in this research.
Keywords: Brand Awareness, Café, Caturra Espresso, Coffee Shop, Customer Loyalty, Food and Beverage, Innovation
© Copyright 2019 by Marsella Giovani Aliman
All rights reserved
DEDICATION
I dedicate this work to the person I love the most in this world, my beloved Grandfather, who has taken away by God during the process of this thesis writing.
I love you and I miss you.
ACKNOWLEDGEMENT
Firstly, I would like to thank God and be grateful for His blessing, for receiving the chance of studying for these past 4 years and being in the process of establishment of my thesis. Without His blessing and the Holy Spirit, I will not be able to finish until this far.
Secondly, I am filled with massive gratitude with my parents that have supported and flooded me with their endless prayers while living out of their reach outside their and my hometown until I became who I am now; moreover my grandparents for all the things you have done to me, especially my grandfather, whom surely I believe watches me and sends his prayers towards me. I present this thesis for you.
Thirdly, my one and only thesis advisor, Ms. Nila Hidayat. Despite of being challenging, her great guidance led me here finishing my thesis as best as can. Thank you very much for always believe in me, the patience, and guide me with your best.
Furthermore, I thank Swiss German University that has provided and educated me to be a more positive person- the journey from campus to the internship programs that I had at Bali and Hong Kong, which are those are the best moments I ever had in my life. I met with many amazing people in this journey, which I am so grateful and blessed.
Lastly, I feel blessed to have my great friends and colleagues. Icha and Fara for being my best survival kit in this university life and someone to stick with when I am staying at Jakarta. Surely these are the good old days with two of you that I am going to miss in the years ahead. And for my hometown friend, my comfort zone, Kesayangan, to be always there in a call away. Much love!
TABLE OF CONTENTS
STATEMENT BY THE AUTHOR ... 2
ABSTRACT ... 3
DEDICATION ... 5
ACKNOWLEDGEMENT ... 6
LIST OF FIGURES ... 9
LIST OF TABLES ... 10
CHAPTER 1 – INTRODUCTION ... 11
1.1 Background ... 11
1.2 Research Problems ... 16
1.3 Research Questions ... 16
1.4 Research Objectives ... 16
1.5 Scope and Limitation ... 17
1.6 Significance Study ... 17
CHAPTER 2 – LITERATURE RESEARCH ... 18
2.1 Current Condition of Coffee Shop in Indonesia ... 18
2.2 Innovation ... 20
2.2.1 Definition of Innovation ... 20
2.2.2 Dimension and Indicator of Innovation ... 21
2.2.3 Relationship of Innovation and Customer Loyalty ... 23
2.2.4 Relationship of Innovation and Customer Satisfaction ... 23
2.3 Brand Awareness ... 23
2.3.1 Definition of Brand Awareness ... 23
2.3.2 Indicator of Brand Awareness ... 24
2.3.3 Relationship of Brand Awareness and Customer Loyalty ... 25
2.3.4 Relationship of Brand Awareness and Purchase Intention ... 26
2.4 Customer Loyalty ... 26
2.4.1 Definition of Customer Loyalty ... 26
2.4.2 Indicator of Customer Loyalty ... 27
2.4.3 Relationship of Corporate Brand Image and Customer Loyalty ... 28
2.4.4 Relationship of Customer Satisfaction and Customer Loyalty ... 28
2.4.5 Relationship of Restaurant Service Quality and Customer Loyalty ... 29
2.5 Previous Study ... 29
2.6 Study Differences ... 32
2.7 Research Model ... 33
2.8 Hypothesis ... 33
CHAPTER 3 – RESEARCH METHOD ... 34
3.2 Unit of Analysis ... 34
3.3 Sampling Design ... 35
3.3.1 Population ... 35
3.3.2 Sampling ... 35
3.3.3 Sample Size ... 35
3.4 Sources & Collection ... 36
3.4.1 Type of Data ... 36
3.4.2 Data Collection Method ... 37
3.6 Data Processing Procedure ... 41
3.6.1 Data Preparation ... 41
3.6.2 Data Screening ... 42
3.6.3 Validity Test ... 42
3.6.4 Reliability Test ... 44
3.7 Data Analysis Technique ... 46
3.7.1 Classical Assumption Test ... 46
3.8 Qualitative Data Analysis ... 50
3.8.1 In-Depth Interview ... 50
3.8.2 Tringulation ... 50
CHAPTER 4 – RESULT AND DISCUSSION ... 51
4.1 Company Profile – Caturra Espresso ... 51
4.2 Respondent Profile ... 52
4.2.1 Gender ... 53
4.2.2 Age ... 54
4.2.3 Education ... 55
4.2.4 Occupation ... 56
4.3 Multiple Regression Analysis ... 57
4.3.1 F-Test ... 58
4.3.2 T-Test ... 59
4.3.3 R2 Test (Coefficient Determination) ... 60
4.4 Hypothesis Result & Discussion ... 60
4.5 Triangulations ... 62
4.5.1 In-depth Interview with the Owner of Caturra Espresso ... 63
4.5.2 In-depth interview with the loyal customer of Catura Espresso ... 65
CHAPTER 5 – CONCLUSION AND RECOMMENDATION ... 68
5.1 Conclusion ... 68
5.2 Recommendation ... 69
5.2.1 Managerial Implication ... 69
5.2.3 Further Study ... 71
REFERENCES ... 72
GLOSSARY ... 76
APPENDICES ... 77
Appendix 1 – Questionnaire for Caturra Espresso Customer (English) ... 78
Appendix 2 – Questionnaire Caturra Espresso Customer (Bahasa) ... 81
Appendix 3 – Caturra Espresso Overview ... 84
Appendix 4 – Interview Transcript with Kevin (Caturra Espresso Owner) ... 87
Appendix 5 – Interview Transcript with Alicia (Caturra Espresso Owner) ... 92
Appendix 6 – Innovation Validity Result ... 95
Appendix 7 – Brand Awareness Validity Result ... 99
Appendix 8 – Customer Loyalty Validity Result ... 100
Appendix 9 – Normality Test Histogram Result ... 102
Appendix 10 – T-Test Partial Correlation Result ... 103
Appendix 11 – Curriculum Vitae ... 104
