Effect of Product Attribute, Satisfaction and Trust in Customer Loyalty Oriflame products

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Progress Conference Volume 2 Number 2, August 2019| 277

Effect of Product Attribute, Satisfaction and Trust in Customer Loyalty Oriflame products

(Case Study at STIE student Widya Gama Lumajang)

Diah Anggraeni Prahesti¹, Tri Palupi Robustin², Hartono³ STIE Widya Gama Lumajang

Abstract

The purpose of this study was to Determine the effect between product attributes, satisfaction and trust in the loyalty of the Oriflame product customers to STIE Widya Gama Lumajang students, partially or simultaneously. This study uses quantitative research, the samples taken in this study amounted to 40 people. The method used is the method of multiple linear regression analysis. The results of the study partially PROVE that product attribute variables and trusts do not Affect the loyalty of customers of Oriflame products, while the variable Satisfaction Affects the loyalty of customers of Oriflame products. Simultaneously there are effects of product attributes, satisfaction and trust in the loyalty of customers of Oriflame products with a determination coefficient of 0653 indicates that 65 roomates.

Keywords: product attributes, satisfaction, trust, customer loyalty

INTRODUCTION

Competition between markets personal care and cosmetics industry is increasingly high, this is evidenced by the many types of cosmetics on the market of production in the country and abroad.

The number of cosmetics on the market today greatly influence a person to purchase and consumption of goods. Purchasing a product is now no longer to meet the needs (need), melainnkan to needs (wants).

Cosmetics is one of the human needs that already exists and is growing from time to time, it is also a cosmetic dismaping important role to support the appearance of a person. Even for someone with a more complex lifestyle cosmetics has become a staple. Of consumption of cosmetic products is now likely to greatly increase, along with changes in people's lifestyles and consumption patterns.

Meanwhile terlalui knowledge communities is not sufficient to choose and use the product appropriately, correctly and safely. On the other hand with the development of today's modern technology, advertising and promotional incentive to encourage consumers to consume excessive and often irrational.

One brand of cosmetics circulating among the community began in 1967 was Oriflame products.

Oriflame is one of the famous cosmetics with products that use ingredients from natural plants that are most likely to be used by all skin types Indonesian women. Currently Oriflame became an international beauty company with system sales in more than 60 countries around the world including Indonesia. Oriflame wants to create a cosmetics company that is very different from other companies by offering innovative product types.

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Progress Conference Volume 2 Number 2, August 2019| 278 The previous study tersebutlah become baselines by the author, in this study the authors examined related to product attributes, satisfaction and confidence in the Oriflame products, with the measurement variables used slightly different from the research done by (Moh. Dimyanti, 2012), where the this study authors used measurements of product attribute variables, satisfaction, trust and loyalty, where the sample is a management student rate of 6 to 8 in STIE Widya Gama Lumajang.

Based on the description above, the writer interested in taking research with Judu "The influence of product attributes, satisfaction and trust on customer loyalty Oriflame products".

METHODS

This research is using quantitative research, the type of data used is primary data and secondary data. The population in this study is a student who purchase and use products Oriflame in STIE Widya Gama Lumajang. The sampling technique with certain criteria.

Criteria for the study include:

a. Respondents were students STIE Widya Gama Lumajang

b. Respondents made purchases of Oriflame products of more than one kalipembelian

The analysis technique used in the study is the linear regression analysis bergandamodel have been selected for this study have several independent variables. The research data was processed using SPSS 21.

In this study, the independent variables used are the attributes of the product (X1), satisfaction (X2), and trust (X3). The dependent variable used in this study is a customer loyalty (Y).

Multiple linear regression equation in this study are as follows:

Y = a + b1. X1 + b2. X2 + b3. X3 + e

The first test conducted was the classic assumption test with some testing, namely: normality test, multicollinearity, heteroskedatisitas test.

The method of hypothesis testing done of the partial test (t test) and simultaneous testing (test F) and coefficient of determination (R2).

RESULTS AND DISCUSSION

The data presented is in the form of a table for which data have been processed by the researchers, following penlitian the data were obtained:

Table 1.Hasil Test Validity and Reliability

variables Statement product Moment Cronback's Alpha

1 0.431

2 0.627

Product attribute 3 0.446 0.678

4 0.412

5 0.661

1 0.593

Satisfaction 2 .595 0,746

3 .595

4 0.785

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Progress Conference Volume 2 Number 2, August 2019| 279

1 .674

Trust 2 0.695 0.699

3 .419

4 .515

1 0.865

Loyalty 2 .640 0,813

Customer 3 0.817

4 0.841

Source: Questionnaire Data Processing with SPSS 21, 2019

Table 1 shows that of whole grains statements consisting of each of the five (5) point statement for a variable product attributes, 4 (four) point statement for the variable Satisfaction, 4 (four) point statement for the variable Trust and 4 (four) point statement for Customer Loyalty variables have met the criteria in testing the validity, so it can be concluded that all declared valid point statement and declared eligible as an instrument of research because it can collect data or information required. In Table 1 also shows the value of Cronbach's alpha> 0.6, which means the statement is reliable,

The test results showed that the popularity of the 40 respondents obtained a mean value of -3.12 and a standard deviation of 0.961 and the peak point right in the middle or the right point at 0 (no slope).

The results of the normality test data show that the probability graph plots dots spread around the diagonal line and follow the direction of a diagonal spread. The second chart above shows that the regression model unfit for jeduanya meet nomalitas assumptions.

Table 2. Results of Testing Multicolinearity

variables tolerance VIF Information

Number of product attributes (X1)

0,747 1.338 free Multicolinearity Total Satisfaction (X2) 0.507 1,972 free Multicolinearity

Total Trust (X3) .640 1,562 free Multicolinearity

The test results showed that all variables used as predictors of regression models show a fairly small VIF, which were all under 10 and a tolerance value greater than 0.10. So the independent variables used in the study did not show any symptoms multikoliniaritas which means that all of these variables can be used as independent variables.

The regression model did not have symptoms of heteroskedastisitas which indicates that there is no significant interference in this regression model.

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Progress Conference Volume 2 Number 2, August 2019| 280 Table 3. Results Test t test (Test Partial)

Based on t test results above can be concluded about the first hypothesis up to the third hypothesis described as follows:

The results of the t test for the variable quality of product attributes (X1) obtained results tcount 0.309 with 0.759 significance level. By using a 5% significance limit or obtained ttabel 0.05 ± 2.024. This means that t (0.309) <t table (2.024), which means that H0 is accepted and Ha rejected.

With 0.759 significance level which is above the limit of significance of 0.05 the first hypothesis is rejected. In other words, it can be concluded that the variable product attributes have no significant effect on customer loyalty Oriflame cosmetic products on the students STIE Widya Gama Lumajang.

The results of the t test for Satisfaction (X2) obtained results tcount ttabel 5.248 with significance level of 0.000. By using a 5% significance limit or obtained ttabel 0.05 ± 2.024. This means that t (5.248)> t table (2.024), mean H0 rejected and Ha accepted. With a significant level of 0.000 under the limit of significance 0.05 second hypothesis could be accepted. In other words, it can be concluded that the Satisfaction variables significantly influence customer loyalty Oriflame cosmetic products on the students STIE Widya Gama Lumjanag

The results of the t test for variables Trust (X3) obtained results tcount 0.853 with 0.399 significance level. By using a 5% significance limit or obtained ttabel 0.05 ± 2.024. This means that t (0.853) <t table (2.024), which means that H0 is accepted and Ha rejected. With 0.399 significance level which is above the limit of significance of 0.05 the first hypothesis could be accepted. In other words, it can be concluded that customers trust variables have a significant effect on customer loyalty STIE student Oriflame cosmetics products Widya Gama Lumajang.

Coefficientsa

Model

Coefficients unstandardized

standardized Coefficients

t Sig.

correlations collinearity Statistics B Std.

Error

beta Zero-

order Parti

al

part toler ance

VIF

1

(Constant) -6899 3888 -1775 .084

Number of Product Attributes

.053 .173 .035 .309 .759 .412 .051 .030 .747 1,338

Total Satisfactio n

1,110 .211 .724 5,248 .000 .803 .658 .516 .507 1,972

Total Kepercaya an

.194 .227 .105 .853 .399 .540 .141 .084 .640 1,562

a. Dependent Variable: Customer Loyalty (Y)

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Progress Conference Volume 2 Number 2, August 2019| 281 Table 4. Results of Testing Test F (Simultaneous Testing)

ANOVAa

Model Sum of Squares df mean Square F Sig.

1

Regression 202 131 3 67 377 22 533 .000b

residual 107 644 36 2,990

Total 309 775 39

a. Dependent Variable: Number of Customer Loyalty

b. Predictors: (Constant), total confidence, total product attributes, Total Satisfaction

Based on the results of testing table 4 f test value given Fhitung 22.533> Ftable by 2.87 with a significant level of 0.000 <0.05. So it can be seen that the variables simultaneously Product Attributes, Satisfaction and Confidence significant effect on Customer Loyalty Oriflame cosmetic products on the students STIE Widya Gama Lumajang.

Based on these descriptions show there is a positive relationship between the variables Product Attributes, Satisfaction and Trust has a significant impact on Customer Loyalty Oriflame cosmetic products on the students STIE Widya Gama Lumajang.

Table 5. The coefficient of determination (R2)

From hasi calculations in Table 5 coefficients of determination (R2) using SPSS version 21 can be known if the determinant coefficient (R Square) obtained at 0.653. This means that 65.3%

Customer Loyalty can be explained by the variable product attributes, Satisfaction and Trust while the remaining 34.7% Customer Loyalty is influenced by other variables not examined in this study, for example variable quality of product, price and quality of service ,

CONCLUSION

Based on the analysis of research data and pembahsan already described, it can be concluded as follows:

1. Product attributes has no effect on customer loyalty 2. Satisfaction effect on customer loyalty

3. Trust no significant effect on customer loyalty

4. Product Attributes, Satisfaction and Trust show that the simultaneous attributes of the product, satisfaction and trust has a significant influence on customer loyalty Oriflame products.

Model Summaryb

Model R R

Square

Adjusted R Square

Std. Error of the Estimate

Change Statistics R Square

Change F Change

DF1 DF2 Sig. F Change

1 .808

a

.653 .624 1,729 .653 22 533 3 36 .000

a. Predictors: (Constant), total confidence, total product attributes, Total Satisfaction b. Dependent Variable: Number of Customer Loyalty

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