The Effect of Product Quality, Brand Image and Brand Trust on Bear Brand Customer Loyalty
(Case Study on Management Study Program Students at Narotama University)
Afira Muntiasari
Department of Managemen, Narotama University
Jl. Arief Rachman Hakim, No. 51, 60117, Surabaya, Indonesia [email protected]
Abstract
This research aims to analyze whether Product Quality, Brand Image, and Brand Trust have a significant effect on Bear Brand Customer Loyalty among Management Study Program Students at Narotama University Class of 2019. The data collection technique for this study was a sampling technique using purposive sampling by taking 100 respondents. Data collection through distributing questionnaires. The type of research used is quantitative research, using the Multiple Linear Regression data analysis method through the IBM SPSS version 26 for windows application. Based on the results of the study, it shows that the variables of Product Quality, Brand Image, and Brand Trust partially have a significant positive effect on Customer Loyalty. Simultaneously the variables Product Quality, Brand Image, and Brand Trust have a significant positive effect on Customer Loyalty obtained by Fcount > F table, namely 67.328> 2.699 with a significance value of 0.000 <0.05.
Keywords :
Brand Image, Brand Trust, Customer Loyalty, Product Quality 1. Introduction
The development of the beverage industry in Indonesia is marked by the various types and brands of drinks circulating in the market. In addition, every company today must have a good and appropriate strategy in dealing with competition to attract customer attention, so as not to cause the products issued by the company to fail in marketing. The existence of developments and progress in the emergence of packaged milk beverage products at this time which are marked by various brands circulating in the community has resulted in competitive competition between companies, companies must be able to compete with their competitors in improving product quality. Companies are required to be able to meet customer needs and be able to create a product that has advantages and a characteristic that can differentiate between these products and competitors' products. Companies are required to create a product value that can attract customer buying interest in a product.
A company can be said to be a winner in increasingly fierce business competition if the company can attract the attention of consumers as much as possible and of course the company gets enormous profits in accordance with company goals.
1.1. Literature Review 1.1.1. Previous Research
Research conducted by Heliani & Elisah (2022) This study aims to determine product quality, Brand
a product as something that can be offered to the market to be noticed, owned, used or consumed so as to satisfy wants and needs.
1.2.2. Brand Image
According to Kotler (2016) brand image is defined as the sum of the beliefs, images, impressions that a person has on an object. The object in question can be a person, organization, group of people or other known. If the object is in the form of an organization, it means that the whole belief, picture and impression of a person's organization is an image.
1.2.3. Brand Trust
According to Tjiptono (2015) brand trust is defined as the customer's desire to rely on a brand with the risks it faces because the expectation of the brand will lead to positive results.
1.2.4. Customer Loyalty
According to Griffin (2015:31) Customer loyalty is a reliable measure for predicting sales and financial growth. Loyalty can be defined based on buying behavior. Loyal customers are people who make regular repeat purchases, buy across product and service lines, recommend products to others, and demonstrate immunity to the pull of competing products.
1.3. Relations Between Variables
1.3.1. Relationship Between Product Quality Variable (X1) and Customer Loyalty (Y)
The better the quality of the products offered by the company to consumers, encouraging consumer attitudes to want to make purchases. This is supported by previous research, namely according to Fathorrahman, (2021); Heliani & Elisah (2022); Sianturi, Malau, & Hutapea (2021) states that product quality has a significant influence on customer loyalty.
1.3.2. Relationship Between Brand Image Variable (X2) and Customer Loyalty (Y)
The stronger and superior the image that is believed by consumers from a product, the consumer will buy the product for consumption. This is supported by previous research, namely according to Astuti & Sudarusman (2021); Fitriani (2019); Ngabiso et al., (2021) stating that Brand Image has a significant influence on Customer Loyalty.
1.3.3. Relationship Between Brand Trust Variable (X3) and Customer Loyalty (Y)
The better consumer perception and trust in a particular brand will create consumer buying interest and even increase consumer loyalty to certain products. This is supported by previous research, namely according to Harjati (2020); Hartati (2019); Ngabiso et al., (2021) states that Brand Trust is an important consideration before choosing beverage products or before deciding to purchase beverage products.
1.3.4. The Relationship Between the Variables Product Quality (X1), Brand Image (X2), and Brand Trust (X3) With Customer Loyalty (Y)
The existence of a quality product has an important role in forming a brand image for the product, because a strong and superior image will lead to brand trust in customers. Where the product is in accordance with the wishes and needs of its customers. This is supported by all the studies mentioned above, so if there is a partial relationship between each variable, it is likely that it will also have an effect simultaneously.
1.3.5. Framework of Thinking
Figure 1. Research Concept Source: Results of Research Data Processing 1.4. Hypothesis
H1: Product Quality (X1) partially has a positive and significant effect on Customer Loyalty (Y) H2: Brand Image (X2) partially has a positive and significant effect on Customer Loyalty (Y) H3 : Brand Trust (X3) partially has a positive and significant effect on Customer Loyalty (Y)
H4: Product Quality (X1), Brand Image (X2), and Brand Trust (X3) simultaneously have a positive and significant effect on Customer Loyalty (Y)
2. Research Methods
2.1. Type of Research, Sample, and Data Collection
This research was conducted on research respondents, namely consumers from Management Study Program students at Narotama University Batch 2019 who had bought and consumed Bear Brand. The data collection technique for this study was a sampling technique using purposive sampling by taking 100 respondents. Data collection through distributing questionnaires and measured using a Likert Scale 1-5.
2.2. Variables and Operational Definitions
Tabel 1. Operational Definition of Research
Variable Indicators Questionnaire Items Likert Scale
Product Quality (X1) (Kotler Philip dan Kevin L. Keller, 2013).
Product durability Product features 3.Product Reliability 4.Conformance
of Specifications
Bear Brand dairy products have good shelf life (production code and expiration date are always printed on the packaging) Bear Brand milk products are viewed by customers as milk that has higher quality
than other milk, in terms of price, packaging, viscosity Bear Brand dairy products have the specialty of having a complete nutritional
content and a thicker milk texture Bear Brand dairy products contain ingredients according to the specifications
promised in their promotions, namely 100% high quality pure milk
Likert 1-5
Brand Image (X2) (Keller, 2018:5) Brand Advantage
Brand Power Brand Uniqueness
The distinctive feature that is the main attraction for consumers of Bear Brand dairy products is the superior quality and
benefits they have
Bear Brand Milk has been popular for a long time through intense TV commercials, considering the existence of
Bear Brand Milk since 1906 Bear Brand dairy products have a brand uniqueness in terms of packaging and logo design, besides that they also have various variants that meet consumer expectations
Likert 1-5
Brand Trust (X3) (Delgado-ballester, 2018) 1.Viability 2.Intentionality
Consumers of Bear Brand dairy products can rest assured that bear brand products will always fulfill the promised quality
and benefits
Consumers of bear brand products are confident that the inputs and complaints they have will be properly accommodated
by the company PT Nestle
Likert 1-5
Customer Loyalty (Y) (Kotler Philip dan Kevin L.
Keller, 2016:57) 1.Repeat Purchase 2.Retention 3.Referalls
Consumers of Bear Brand milk repurchase Bear Brand milk
Consumers of Bear Brand milk are not affected by promotions from other products and continue to choose Bear
Brand milk for consumption Consumers of Bear Brand milk provide recommendations and positive comments
about Bear Brand milk to others.
Likert 1-5
3. Results and Discussion 3.1. Analysis
3.1.1. Respondent Profile
Based on a research sample of 100 respondents to consumers of Management Study Program Students at
The mean of the Brand Image variable is 4.15 which means strongly agree. The mean of the Brand Trust variable is 4.15 which means strongly agree. The mean of the Customer Loyalty variable is 4.16 which means strongly agree.
3.1.3. Data Instrument Testing 1. Validity Test
Table 2. Validity Test Results
Variable Question R Count Result Product Quality (X1)
1 0,681 Valid
2 0,695 Valid
3 0,703 Valid
4 0,710 Valid
Brand Image (X2)
1 0,769 Valid
2 0,787 Valid
3 0,751 Valid
Brand Trust (X3) 1 0,884 Valid
2 0,889 Valid
Customer Loyalty (Y)
1 0,727 Valid
2 0,817 Valid
3 0,744 Valid
Source: Results of Research Data Processing
In the table above, for each item the value of R count > R table (0.1966), so that the data obtained from the study shows that each item in each variable is declared valid.
2. Reliability Test
Table 3. Reliability Test Results
Variable Koefisien Alpha Cronbach’s Decision
Product Quality(X1) 0,647 Reliabel
Brand Image (X2) 0,650 Reliabel
Brand Trust (X3) 0,729 Reliabel
Customer Loyalty (Y) 0,641 Reliabel
Source: Results of Research Data Processing
In the table above, the data obtained from the research shows that the variable Product Quality (X1), Brand Image (X2), Brand Trust (X3) and Customer Loyalty (Y) has a Cronbach's alpha coefficient value above 0.6 so it proves reliable.
3.1.4. Classical Assumption Testing 1. Normality Test
Table 4. Normality Test Results One-Sample Kolmogorov-Smirnov Test
Standardized Residual
The table above shows that the significance value of the standardized residual is 0.128 >
0.05 so that the residuals are normally distributed. This shows that the regression model is feasible to use because it fulfills the element of normality.
2. Multicollinearity Test
Table 5. Multicollinearity Test Results Collinearity Statistics
Tolerance VIF
0.446 2.243
0.408 2.452
0.512 1.953
Source: Results of Research Data Processing
From the table, the tolerance values for the independent variables are > 0.1 and the VIF is < 10. These values indicate that there is no multicollinearity between the independent variables.
3. Heteroscedasticity Test
Table 6. Heteroscedasticity Test Results Correlations
Product Quality
Brand Image
Brand Trust
Unstandardized Residual Correlation Coefficient 1.000 .570** .537** .009
Product Quality Sig. (2-tailed) . .000 .000 .929
N 100 100 100 100
Correlation Coefficient .570** 1.000 .595** .140
Brand Image Sig. (2-tailed) .000 . .000 .164
Spearman's rho N 100 100 100 100
Correlation Coefficient .537** .595** 1.000 .035
Brand Trust Sig. (2-tailed) .000 .000 . .727
N 100 100 100 100
Unstandardized Residual
Correlation Coefficient .009 .140 .035 1.000
Sig. (2-tailed) .929 .164 .727 .
N 100 100 100 100
**. Correlation is significant at the 0.01 level (2-tailed).
Source: Results of Research Data Processing
Based on the results of the heteroscedasticity test using the Glejser test, it can be seen that the significance value of the Product Quality (X1), Brand Image (X2), and Brand Trust (X3) variables for Absolute Residual each has a significance value of > 0.05. That is, the data is declared not experiencing heteroscedasticity.
3.1.5. Multiple Linear Regression Analysis
Table 6. Multiple Linear Regression Test Results Coefficientsa
Model
Unstandardized Coefficients
Standardized
Coefficients t Sig. Collinearity Statistics
B Std. Error Beta Tolerance VIF
(Constant) .969 .840 1.154 .252
1 Product Quality .264 .067 .340 3.922 .000 .446 2.243
This study produces multiple linear regression equations as follows:
Y = 0,969 + 0,264 X1 + 0,351 X2 + 0,317 X3 + e
The value of the dependent variable Customer Loyalty (Y) can be seen from its constant value of 0.969, Product Quality (X1) the magnitude of the regression coefficient is 0.264, it means that every change in the Product Quality variable (X1) of one unit, the Customer Loyalty variable (Y) will increase, Brand Image (X2) the magnitude of the regression coefficient is 0.351, it means that every change in the Brand Image variable (X2) is one unit, the Customer Loyalty variable (Y) will increase, Brand Trust (X3) the magnitude of the regression coefficient is 0.317, it can mean that every change in the variable Brand Trust (X3) of one unit, the Customer Loyalty variable (Y) will increase.
3.1.6. Hypothesis Testing 1. T test (Partial)
Table 7. Hypothesis Testing Coefficientsa Model
Unstandardized Coefficients
Standardized
Coefficients t Sig. Collinearity Statistics
B Std. Error Beta Tolerance VIF
1
(Constant) .969 .840 1.154 .252
Product Quality .264 .067 .340 3.922 .000 .446 2.243
Brand Image .351 .099 .323 3.560 .001 .408 2.452
Brand Trust .317 .096 .267 3.300 .001 .512 1.953
Source: Results of Research Data Processing a. Dependent Variable: Customer Loyalty
Based on the Sig value on the t test of this study, it can be interpreted as follows:
1) Because the t count > t table is 3.922 > 1.661 and a significance value of 0.005 <0.05, this indicates that partially the Product Quality variable (X1) has a significant effect on Customer Loyalty (Y).
2) Because the t count > t table is 3.560 > 1.661 and a significance value of 0.001 <0.05, this indicates that partially the Brand Image variable (X2) has a significant effect on Customer Loyalty (Y).
Because the t count > t table is 3.300 > 1.661 and a significance value of 0.001 <0.05, this indicates that partially the Brand Trust variable (X3) has a significant effect on Customer Loyalty (Y).
2. F Test (Simultaneous)
Table 8. F Test Results (Simultaneous) ANOVAa
Model Sum of Squares df Mean Square F Sig.
Regression 98.225 3 32.742 67.328 .000b
1 Residual 46.685 96 .486
Total 144.910 99
Source: Results of Research Data Processing
3.1.7. Determination Coefficient Test
Table 9. Test Results for the Coefficient of Determination (R2) Model Summaryb
Model R R Square Adjusted R Square Std. Error of the Estimate
1 .823a .678 .668 .697
Source: Results of Research Data Processing
a. Predictors: (Constant), Brand Trust, Product Quality, Brand Image b. Dependent Variable: Customer Loyalty
The value of the coefficient of multiple determination (R-square) is 0.678 or 67.8%, this value indicates that 67.8% Customer Loyalty (Y) is influenced by Product Quality (X1), Brand Image (X2) and Brand Trust (X3) and the remaining 32.2% is influenced by other variables outside the research.
3.2. Discussion of Research Results
3.2.1. Effect of Product Quality (X1) on Customer Loyalty (Y)
Based on these results obtained from the results of the regression test statistic with a t-count value of 3.922, which means that every increase in the product quality variable by 1 unit, the purchase decision will also increase by 3.922. The results of a significance value of 0.000 are smaller than 0.05, the hypothesis is declared accepted. . This shows that the better the quality of the products offered by the company to consumers, it will encourage consumer attitudes so that customer loyalty arises for bearbrand products in Narotama University management students class of 2019.
3.2.2. Effect of Brand Image (X2) on Customer Loyalty (Y)
From the results of hypothesis testing it was found that the brand image variable had a positive and significant effect on bearbrand customer loyalty among Narotama University management students class of 2019. These results were obtained from the statistical results of the regression test with a calculated t value of 3.560, which means that every increase in the brand image variable is 1 unit, so customer loyalty will also increase by 3,560. The result of a significance value of 0.001 is smaller than 0.05. The hypothesis is declared accepted. This shows that the better the brand image, the more it will encourage consumer attitudes so that customer loyalty arises for bearbrand products among Narotama University management students class of 2019.
3.2.3. Effect of Brand Trust (X3) on Customer Loyalty (Y)
From the results of hypothesis testing, it was found that the brand trust variable had a positive and significant effect on bearbrand customer loyalty among Narotama University management students class of 2019. These results were obtained from the statistical results of the regression test with a calculated t value of 3.300, which means that every increase in the brand trust variable is 1 unit, so customer loyalty will also increase by 3,300. The result of a significance value of 0.001 is smaller than 0.05. The hypothesis is declared accepted. This shows that the better the brand trust, the more it will encourage consumer attitudes so that customer loyalty arises for bearbrand products in Narotama University management students class of 2019.
3.2.4. Effect of Product Quality (X1), Brand Image (X2), and Brand Trust (X3) on Customer Loyalty (Y)
Based on the results of simultaneous testing (Test F) of the independent variables (free) product quality, brand image, and brand trust on customer loyalty, the F value gets a score of 67,328 greater than the F table, which is 2.699 with a sig value of 0.000 <0.05. This is in line with the 5th hypothesis or H5 which states Product Quality (X1), Brand Image (X2), and Brand Trust (X3) simultaneously have a significant positive effect on Customer Loyalty (Y).
4. Conclusions and Recommendations 4.1. Conclusion
Based on the results of partial statistical tests, the product quality variable has a significant positive effect
3. Based on the results of partial statistical tests, the brand trust variable has a significant positive effect on customer loyalty Bear brand among students of management study program at Narotama University.
4. Based on the results of simultaneous statistical tests, the variables of product quality, brand image, and brand trust have a significant positive effect on customer loyalty Bear brand in management study program students at Narotama University.
4.2. Suggestion
Based on the results of the research, discussion and conclusions that have been described above, the authors can provide the following suggestions:
1. For Academics
It is hoped that this research can contribute to the development of science and can serve as a source of reference and documentation as material for consideration for other research related to product quality, brand image, and brand trust on customer loyalty.
2. For The Company
This research can be a reference for company management in making policies and become information that can assist management in making decisions regarding the application of company values. With the results of research which state that product quality, brand image, and brand trust have an influence on customer loyalty both partially and simultaneously, this can be taken into consideration and input for future companies. Because of these three variables have a considerable influence on customer loyalty as much as 67.8%.
3. For Further Researchers
For future researchers, it is hoped that in the future it can be used as a data source and reference for research and further research is carried out based on more complete and broader information, not only on Narotama students. And adding other variables that are not present in this study and also of course those related to customer loyalty such as prices, promotions and so on with the hope that the results from further research can be better.
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