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CHAPTER I INTRODUCTION
1.1 Background
The development and growth of the automotive industry is currently very rapid, this is indicated by the increasing quantity of vehicles currently owned by the public. Especially in the motorcycle industry, its development is very visible, motorbikes are born with various brands, models, types, colors and other specifications. All of this is in line with increasing population activity in various aspects.
In order for the motorcycle industry to exist in the automotive market, it must be consistent with the strategy of understanding consumer wants, needs and tastes. This is because more and more various brands and their variants appear, such as Yamaha, Honda, Suzuki, Kawasaki, and so on, so companies need to know what can influence consumers to buy an item.
Human life cannot be separated from buying and selling, before making a purchase, someone will usually make a purchase decision in advance of a product.
According to Fandy Tjiptono (in Adha, 2019) Purchasing decision is a process in which consumers think about, look for information about a particular product or brand and at least be good at each of these alternatives and make purchase decisions.
Some of the factors that influence motorcycle purchasing decisions are quality of service, service quality becomes an important thing because service quality is a strategy to attract more new customers, retain existing customers, avoid customer movement and create special advantages. Companies that prioritize good service quality will have an impact on consumer satisfaction in purchasing decisions for motorcycle products.
Another factor is price. Price is important because it is an important factor in a company to get a profit. Many companies go bankrupt because they set prices
2 that are not suitable in the market. The price set must be in accordance with the consumer's economy, so that consumers can buy these goods and services.
Therefore, fixing the right price needs great attention from the company.
The next factor is Brand Loyalty. According to Mowen (in Jabir, 2016) brand loyalty is defined as the level where customers have a positive attitude towards a brand, have commitment and tend to continue to buy products with a certain brand in the future. Thus, brand loyalty is directly influenced by customer satisfaction / dissatisfaction with certain brands.
Table 1.1 Data on Motorcycle Sales for 2017-2019
No. Brand Sales Year 2017 Sales Year 2018 Sales Year 2019 1. Honda 4.385.888 unit 4.759.202 unit 4.910.688 unit 2. Yamaha 1.348.211 unit 1.455.088 unit 1.434.217 unit
3. Suzuki 78.637 unit 89.508 unit 71.861 unit
4. Kawasaki 72.191 unit 78.982 unit 69.766 unit
5. TVS 1.176 331 unit 898 unit
TOTAL 5.886.103 unit 6.383.111 unit 6.487.430 unit
Source: Indonesian Motorcycle Industry Association (AISI),2020
Based on Table 1.1 It can be seen that sales of Honda brand motorcycles are the highest sales compared to other motorcycle brands during 2017 to 2019. It can be seen that the good marketing strategies that have been carried out by Honda brand motorcycles have become the motorbikes with the most sales.
In Bengkalis there is a CV.Andalas Motor Dealer. This dealer is the first dealer in Bengkalis, a dealer that sells Honda motorcycles. This dealer is located on Jalan Hasanudin Bengkalis, where this location is in the middle of a crowd.
Andalas motorbike dealers must be able to provide the best for consumers or customers and use the right marketing strategies to be able to compete with competitors in terms of customer needs and satisfaction to buy a product or service. So that the determination of a mature and precise strategy needs to be considered by the dealer CV. Andalas Motor Bengkalis to be able to compete with other dealers.
Table 1.2 Motorcycle Sales Data for 2017-2019 at CV. Andalas Motor Bengkalis
No. Year Amount (per unit)
1 2017 1002
2 2018 1088
3 2019 1209
Source:Dealer CV.Andalas Motor Bengakalis,2020
3 Based on Table 1.2 the sales of motorbikes at CV. Andalas Motor has increased from 2017 to 2019. This proves that in the City of Bengkalis, Honda motorbikes are very much in demand by the Bengkalis community.
Based on the background stated, this is an interesting object of research to be studied because this dealer has a strategic location, good quality service and a price that is affordable for consumers in making motorcycle purchasing decisions in this place. So that the author also thought to do research with the title “THE INFLUENCE OF SERVICE QUALITY, PRICE, AND BRAND LOYALTY ON MOTORCYCLE PURCHASE DECISION AT DEALER CV.ANDALAS MOTOR BENGKALIS”.
1.2 Formulation of the problem
Based on the background that has been stated, the formulation of the problem in this study is: How is the influence of service quality, price, and brand loyalty on motorcycle purchasing decisions at the dealer CV.Andalas Motor Bengkalis?
1.3 Purpose of the Study
Based on the background and problem formulation, the objectives of this study are:
1. To determine the effect of service quality on motorcycle purchasing decisions at the dealer CV.Andalas Motor Bengkalis.
2. To determine the effect of price on motorcycle purchasing decisions at the dealer CV.Andalas Motor Bengkalis.
3. To determine the effect of Brand Loyalty on motorcycle purchasing decisions at the dealer CV.Andalas Motor Bengkalis.
4. To determine the effect of service quality, price, and brand loyalty motorcycle purchasing decisions simultaneously at dealer CV. Andalas Motor Bengkalis.
4 1.4 Significance of the Study
1. For dealer CV. Andalas Motor Bengkalis
The results of this study can be used as additional information, input and considerations from dealer CV. Andalas Motor Bengkalis in managing service quality, price and brand loyalty for motorcycle purchasing decisions at CV. Andalas Motor Bengkalis dealerships in order to create excellence and be able to compete with other dealers.
2. For Researchers
This study is an opportunity for researchers to increase knowledge and find out the benefits of service quality, price and brand loyalty in making motorcycle purchasing decisions at CV. Andalas Motor Bengkalis.
3. For Other Parties
This research is expected to be a reference and knowledge for research in the field of marketing, especially those related to service quality, price and brand loyalty for motorcycle purchasing decisions at the dealer CV.Andalas Motor Bengkalis.
1.5 Scope and Limitation of the problem
So that research does not become broad and be clear, the scope and boundaries of the problem of this research are as follows:
1. Scope of this study, namely consumers who have bought a motorcycle at the dealer CV.Andalas Motor Bengkalis.
2. Study is limited to the influence of service quality, price, and brand loyalty on motorcycle purchasing decisions at the dealer CV.Andalas Motor Bengkalis.
1.6 Writing Systematic
In order to provide a clear picture of the writing of this project, a writing system has been compiled containing information on the material discussed in each chapter. The systematics of this writing are as follows:
CHAPTER I : INTRODUCTION
5 In this chapter, the authors describe the background, formulation of the problem, purpose of the study, significance of this study, the scope and limitations of the problem and the systematics of writing in the final report.
CHAPTER II: LITERATURE REVIEW
In this chapter, the authors describe the theoretical basis that will be used in the completion of both general and specific theoretical research which consists of Related Theory, literature review, and framework.
CHAPTER III : METHODS AND ACCOMPLISHMENT PROCESS In this chapter the authors explain various things, including:
location, time and object of the study, types and sources of data, population and sample, sampling techniques, data collection techniques, data processing techniques, measurement scale, test validity and reliability, data analysis methods. data, research hypotheses, research models, types of the study, concept definitions and operational variable, and schedule and budget of the study.
CHAPTER IV : RESULT AND DISCUSSION
This chapter contains Result, Discussion, and Limitation of the Study.
CHAPTER V : CONCLUSION AND SUGGESTION
This chapter contains Conclusions and Suggestions REFFERENCES
APPENDICES
WRITER BIOGRAPHY
