Experiential Marketing To Build Customer Loyalty Through Customer Satisfaction In Higher Education
Tri Endang Yania,1*,D.C. Kuswardania,2, Wyati Saddewisasia,3, Witjaksono Eko Hartotoa,4, Adijati Utaminingsiha,5
aFaculty of Economics, Semarang University, Semarang, Indonesia
1atri.endang.yani@usm.ac.id*,2dhani_dc@yahoo.co.id,3wyatis@yahoo.com,4witjaksono.fe.usm@gmail.com,5adijati@usm.ac.id
*corresponding author
ARTICLE INFO ABSTRACT
Article history:
Received 31 Apr 2022 Revised 6 May 2022 Accepted 13 June 2022
This study aims to analyze the effect of Experiential Marketing on customer loyalty through customer satisfaction as an intervening variable in universities. The population in this study were students who were still active at the University of Semarang. The data collection technique used is purposive sampling with the criteria of respondents being students who have taken at least the fourth semester. The analytical method used is multiple linear regression and path analyses. The results showed that Experiential Marketing had a positive effect on Customer Satisfaction, Experiential Marketing had no effect on Customer Loyalty and Customer Satisfaction had a positive effect on Customer Loyalty. Meanwhile, based on path analyses, it is known that Customer Satisfaction is able to mediate the effect of Experiential Marketing on Customer Loyalty.
Copyright © 2023 International Journal of Artificial Intelegence Research.
All rights reserved.
Keywords:
Experiential Marketing Customer Satisfaction Customer Loyalty Higher Education
I. Introduction
Customer loyalty is the goal of all companies, because customer loyalty will ensure the survival of a company. Therefore the company will carry out a strategy in order to retain its customers. The right strategy will be able to keep customers from switching to other companies. According to [30]
the ultimate goal of the success of a company that has a relationship with its relationships is to form strong loyalty. A company's efforts to have many customers are not only by finding new customers, but also by retaining existing customers. If the customer can survive and become a regular customer then it shows that customer loyalty has been achieved.
Developments in the world of marketing at this time are increasingly modern. Marketers are increasingly creative in marketing their products. They see that involving customers in marketing activities will provide effective results. Customers will be brought to feel the product and given an unforgettable experience, so that customers will feel that they are highly valued. Creating an unforgettable experience for consumers is better known as Experiential Marketing. Experiential Marketing is the concept of developing a marketing strategy that emphasizes the emotional aspect of creating an experience for customers while using a product or service. Experiential Marketing is one form of marketing development that is expected to bridge the world between academia and practice. [18] The essence of Experiential Marketing is to build lasting relationships with customers.
Higher education as an institution engaged in educational services certainly not only provides education and skills to students, but also during the process of delivering educational services, of course, it must also provide services that please and satisfy students. According to [23] the success of universities can be seen from student satisfaction with the services provided.
Experiential Marketing will encourage the formation of customer loyalty. According to [12] one aspect of experiential marketing, namely a good feeling will make customers able to think
positively. Marketers just give influence by combining the feel and think that is in the customer to become a memorable experience action, namely an unforgettable experience.
There are five elements of Experiential Marketing [24], namely sense, feel, think, act and relate.
Sense concerns the five senses, such as sight, hearing, and smell which can be done by providing a beautiful sight, pleasant smell, comfortable touch, appropriate music. The feel element is a positive feeling and emotion that arises, how to create a comfortable feeling for consumers. The element of think is creative that appears in the minds of customers of a brand, by making customers think positively about the product. The act element involves physical actions and interactions that arise, namely by making customers more active with the product. The relate element is an effort to connect the brand with the consumer itself, other people or culture.
Several studies have shown that Experiential Marketing can affect customer loyalty. However, achieving customer loyalty is not an easy thing. Many argue that loyalty will be achieved if the customer is satisfied. Meanwhile, satisfaction will occur if the company is able to meet the needs and wants of customers. [19] say that consumer satisfaction is the overall attitude of consumers after obtaining and using goods and services. Companies must be able to meet the needs and desires of consumers to gain consumer loyalty.
Customer loyalty is also a problem that occurs in a university, including the University of Semarang. A university certainly wants its survival to be maintained. Currently, there are many universities that organize study programs with several strata. Not only undergraduate (S1) study programs but also Strata 2 (S2) and Strata 3 (S3) study programs. They try to get students both from outside and from within the college itself. Getting students who come from their own college is an effort that is often done by many universities, because it is easier to do. Higher education as an institution engaged in educational services, of course, not only provides education and skills to students, but also during the process of delivering educational services, of course, must also provide services that are pleasant and satisfying to students. Various efforts are made by universities to retain students, provide services according to the needs and desires of students. This is done so that students feel satisfied and interested in continuing their studies at the same university.
Loyalty can be caused by several reasons, including the fulfillment of student needs and desires so that student satisfaction is achieved while studying. Customer needs and wants can be achieved with Experiential Marketing. By providing sense, feel, think, act and relate, the needs and desires of customers will be fulfilled. Furthermore, with the fulfillment of customer needs and desires, the customer will feel satisfied. Satisfied customers tend to lead to loyalty.
Several studies have shown that Experiential Marketing has a positive effect on customer loyalty [10], [4], [16]. The results of other studies show the opposite, namely that Experiential Marketing has no effect on customer loyalty [22], [5].
The results of research on the positive influence of consumer satisfaction on customer loyalty were also found [22], [4]. In this study also concluded that consumer satisfaction is able to mediate the effect of Experiential Marketing on customer loyalty.
Based on the phenomena and previous studies above, this study raises the issue of how to build customer loyalty in higher education. The results of this study are expected to provide input for universities to achieve customer loyalty, so as to create university competitiveness.
II. Method
This study uses an explanatory approach, which is used to explain causal relationships between variables through testing the formulated hypotheses. The research variables used in this study are Experiential Marketing as the independent variable and customer loyalty as the dependent variable while customer satisfaction as the intervening variable.
The object of this research is the University of Semarang. The population in this study were students of S1 and D3 study programs at the University of Semarang. The sampling technique used is non-probability sampling with a purposive sampling approach, where the researcher chooses a purposive sample subjectively [7]. The criteria used in this case are: 1) S1 and D3 students who are active at the University of Semarang. 2) Students who have taken semester IV (four) in all faculties
The formula used to determine the number of samples from the known population uses the Slovin formula. The Slovin formula is a formula used to calculate the minimum number of samples in a limited population survey. Slovin's formula is as follows:
𝑛 = 𝑁
1+𝑁𝑒2
Notes:
N = number of samples
e = Margin of error, which is the expected error rate of 10%
The number of samples can be calculated as follows:
= 99,50
𝑛 = 19786
1+(19786)(0,10) 2
From the results of the calculation above, the number of samples is 99.50, then it is fulfilled to be 100 samples.
Primary data was collected using questionnaires online with the help of google forms. The google form link is distributed via whatsApp social media to Semarang University students in accordance with the criteria that have been set.
The measurement of the variables themselves will be carried out using a Likert scale using the scoring method as follows: Strongly Disagree (STS) = 1, Disagree (TS) = 2, Moderately Agree (CS) = 3, Agree (S) = 4, Strongly Agree ( SS) = 5.
Based on the theory and previous research, a research framework is made that shows the relationship between Experiential Marketing, Customer Loyalty and Customer Satisfaction as intervening variables, as follows:
Fig. 1. Research framework
Based on the framework of thought in figure 1, the hypothesis proposed is as follows:
H1: Experiental Marketing affects customer satisfaction H2: Experiental Marketing affects customer loyalty H3: Customer satisfaction affects customer loyalty
H4: Experiental Marketing affects customer loyalty by being mediated by customer satisfaction Data analysis is carried out with the SPSS program which includes validity and reliability tests, multicollinearity tests, heteroscedasticity tests and normality tests, and multiple linear regression analysis. Meanwhile, to determine the ability of the intervening variable, path analysis is used.
he research design of this research is a Case Study with a Qualitative approach. Qualitative research methods are often referred to as naturalistic research methods, namely research methods based on the philosophy of postpositivism, used to research on natural object conditions, as opposed to experiments where the researcher is a key instrument where the technique the data collection was carried out in a triangulation (combined) manner, data analysis was inductive or qualitative in nature and the results of qualitative research emphasized the meaning of generalization (Sugiyono, 2016).
In this study the selected informants were people who really understood the business, namely business owners and employees who were fully involved in running the business. The number of informants studied was 57 informants. The location of the research was carried out in the city of Semarang, where there are many business people in the Bandeng Presto cluster in the city of Semarang. who joined as Go-Food merchants.
The types of data in this study are secondary data and primary data. Primary data obtained directly from informants either through interviews or observation and direct observation of research objects, while secondary data obtained from literature books, news on the internet, data from the Central Bureau of Statistics data from APJII (Indonesian Internet Service Provider Association), the Office Cooperatives and others. The data collection procedure that will be carried out in this study is through observation, interviews and documentation. To help researchers so that the results of the interviews can be recorded properly and the researchers have evidence that they have conducted interviews with informants or data sources, this research will use supporting equipment during the interview process, namely as follows: 1. Notebook: to make notes related to interviews conducted carried out by researchers 2. Notebook: to record conversations with data sources 3.
Android smartphone equipped with a recorder, to record conversations with data sources and also make videos of research situations 4. Canon Digital SLR camera, used to take pictures of research objects.
Testing the credibility of the data or trust in the data resulting from qualitative research includes extending observations, increasing persistence in research, triangulation, discussions with colleagues, negative case analysis, and member checks (Sugiyono, 2016).
III. Result and Discussion A. Validity Test
The results of the validity test can be seen in table 1. Table 1 shows the calculated R values on all indicators greater than the table R. That is, all question items are declared valid and can be used as accurate data collectors.
Table 1. Validity Test
Variable Indicators R Value R Table Conclusion
Experiential Marketing X1 ,697 0,1966 Valid
X2 ,613 0,1966 Valid
X3 ,567 0,1966 Valid
X4 ,719 0,1966 Valid
X5 ,713 0,1966 Valid
X6 ,727 0,1966 Valid
X7 ,765 0,1966 Valid
X8 ,726 0,1966 Valid
X9 ,744 0,1966 Valid
X10 ,748 0,1966 Valid
X11 ,810 0,1966 Valid
X12 ,693 0,1966 Valid
X13 ,633 0,1966 Valid
X14 ,698 0,1966 Valid
X15 ,764 0,1966 Valid
X16 ,701 0,1966 Valid
X17 ,655 0,1966 Valid
X18 ,761 0,1966 Valid
X19 ,643 0,1966 Valid
Customer Satisfaction Y.1.1 ,795 0,1966 Valid
Y.1.2 ,795 0,1966 Valid
Y.1.3 ,803 0,1966 Valid
Y.1.4 ,732 0,1966 Valid
Customer Loyalty Y.2.1 ,911 0,1966 Valid
Y.2.2 ,915 0,1966 Valid
Y.2.3 ,812 0,1966 Valid
B. Reliability test
In Table 2, it can be seen that the value of Cronbach's Alpha for all variables is greater than 0.70, so that it can be concluded that all items on all variables are said to be reliable or consistent.
Table 2. Reliability Test
Variable Cronbach’s alpha Conclusion
Experiential Marketing ,943 Reliabel
Customer Satisfaction ,780 Reliabel
Customer Loyalty ,852 Reliabel
C. Test classical assumptions 1) Multicholinearity Test
Based on the regression analysis in the coefficient table, the Tolerance value for the Experiential Marketing and Customer Satisfaction variables was 0.364 greater than 0.01, while the VIF value for the two variables was 2.747 smaller than 10. So it can be concluded that there is no problem of multicholinearity in the regression model.Table
2) Heteroskedasticity Test
The heteroskedasticity test was carried out with the Glejser test, obtained a p-value of experiential marketing of 0.584, while the p-value of 0.800 where both were greater than 0.05. This means that there is no heteroskedasticity problem in regression models. In other words, all independent variables contained in this model have an equal/homogeneous distribution of variants.
3) Normality Test
The normality test of model 2 was carried out with the Kolmogoror-Smirnov test showing that a significant value of 0.200 is greater than the alpha level of 0.05. This means that the data is distributed normally.
D. Multiple Linear Regression Analysis Model 1
Multiple linear regression analysis model 1 is to analyze the effect of Experiential Marketing on Customer Satisfaction. The results of the analysis are shown in table 3 below:
Table 3. Regression Analysis Model 1 Coefficientsa
Model Unstandardized
Coefficients
Standardized Coefficients
t Sig.
B Std. Error Beta
1 (Constant) 2,433 ,988 2,463 ,016
ExperientalMarketing ,173 ,013 ,798 13,086 ,000
a. Dependent Variable: Customer Satisfaction
Table 3 shows a regression coefficient of 0.798 which is positive, meaning that if Experiential Marketing is increased, customer satisfaction will increase.
E. Hypothesis Testing Model 1
Hypothesis testing is carried out by looking at significant probability figures. In Table 3 a significant figure of 0.000 is seen smaller than 0.05. This means that there is a significant influence between Experiential Marketing on Customer Satisfaction.
F. F Test Model 1
The results of the F test which shows the accuracy of a regression model for making forecasting.
The ANOVA table shows a significant probability number of 0.000, meaning that the regression model is appropriately used for forecasting.
G. Coefficient of Determination Model 1
The coefficient of determination is 0.632, meaning that 63.2% of customer satisfaction variation can be explained by its independent variable, namely Experiential Marketing. Meanwhile, the 39.8% variation in Customer Satisfaction is explained by other factors outside the study.
H. Multiple Linear Regression Analysis Model 2
Table 4. Multiple Linear Regression Analysis Model 2 Coefficientsa
Model Unstandardized Coefficients Standardized Coefficients t Sig.
B Std. Error Beta
1 (Constant) -,824 1,084 -,760 ,449
Experiental Marketing ,015 ,023 ,069 ,633 ,528
Customer Satisfaction ,691 ,108 ,703 6,425 ,000
Table 4 shows that the regression coefficients of the two variables are positive, meaning that the more Experiential Marketing and Customer Satisfaction are improved, the more Customer Loyalty increases.
I. Hypothesis Testing Model 2
The significant probability number in Experiential Marketing is 0.528, which is greater than an alpha level of 0.05, which means that Experiential Marketing has no significant effect on Customer Loyalty. So, the hypothesis which states that there is an effect of Experiential Marketing on Customer Loyalty is rejected.
The significant probability of Customer Satisfaction is 0.000, which is smaller than the 0.05 alpha level. This means that customer satisfaction has a significant effect on customer loyalty. So that the hypothesis which states that there is an effect of Customer Satisfaction on Customer Loyalty is accepted.
J. F Test Model 2
In the ANOVA table, a significant probability of 0.000 is obtained less than the alpha level of 0.05. This means that regression models can be used for forecasting.
K. Coefficient of Determination Model 2
The model determination coefficient 2 seen from the adjusted R square shows 0.568. This means that 56.8% of customer loyalty variations can be explained by Experiential Marketing and Customer Satisfaction, while the remaining 43.2% is explained by other factors outside of research.
L. Path Analysis
The path diagram developed based on regression models 1 and 2 can be described as follows:
Fig. 2. Empirical path diagram
A summary of the results of the estimation of regression model parameters 1 and 2 can be seen in the table below:
Table 5. Summary of model parameter estimation results
Model Path coefficient t Sig. Adj R2
Model 1
p(Customer Satisfaction Experiential Marketing) .798 13,086 .000 .632 Model 2
P(Customer Loyalty Experiential Marketing) .069 .633 .528 .568 P(Customer Loyalty Customer Satisfaction) .703 6.425 .000
The amount of direct influence between Experiential Marketing on Customer Loyalty is 0.069.
While the amount of indirect influence between Experiential Marketing on Customer Loyalty through Customer Satisfaction is 0.798 X 0.703 = 0.561. The magnitude of the coefficient of direct influence is smaller than the indirect effect, it can be concluded that customer satisfaction is able to mediate the effect of experiential marketing on customer loyalty.
The results of the study show that Experiential Marketing has a positive effect on customer satisfaction. This can be interpreted as increasing Experiential Marketing, it will further increase customer satisfaction. Efforts to satisfy customers, in this case students can be done by improving the Experiential Marketing indicators. Experiential Marketing is the concept of developing a marketing strategy that emphasizes the emotional aspect of creating an experience for customers while using a product or service. There are five elements of Experiential Marketing [24], namely sense, feel, think, act and relate. Universities should strive to provide a sense of experience by increasing the variety of services, such as building attractive and comfortable buildings so that they can increase student pride. The feel experience strategy needs to be improved with attractive promotions, providing friendly and courteous service to students. To encourage students to be interested in higher education, it is necessary to think strategies, such as providing scholarships, easy access to information and making catchy slogans. Act experience can be provided by providing convenience and comfort in academic and administrative services. Meanwhile relate experience is created by creating a pleasant atmosphere of friendship and togetherness among students, lecturers and employees. The results of this study are in line with research conducted by [28], [26]; [1] which state that Experiential Marketing affects Customer Satisfaction.
Experiential Marketing in this study does not directly affect Customer Loyalty. Improvements in Experiential Marketing will not increase Customer Loyalty directly. Several studies have shown that Experiential Marketing has a positive effect on Customer Loyalty [10]; [4]; [16]. The results of other studies show the opposite, namely that Experiential Marketing has no effect on Customer Loyalty [22]; [5].
Customer Satisfaction in this study is proven to be able to influence Customer Loyalty. The more customer satisfaction increases, the customer loyalty will also increase. So to increase customer loyalty, in this case students, student satisfaction must be created first. Student satisfaction can be obtained by giving a feeling of pleasure, comfort, providing appropriate services and reducing or eliminating complaints. The results of the same study conducted by Shandra &
Murwatiningsih (Shandra and Murwatiningsih, 2016) stated that customer satisfaction will affect loyalty. The results of [13]; [11] state that customer satisfaction has a significant effect on customer loyalty. While the results of research by [6] states that there is a relationship between customer satisfaction and banking customer loyalty. If the customer is satisfied with the bank's products and services, it is likely that the customer will remain loyal to the bank.
This study also proves that Customer Satisfaction is able to mediate the relationship of Experiential Marketing to Customer Loyalty. This means that Experiential Marketing is able to increase Customer Loyalty through Customer Satisfaction first. Efforts to gain customer loyalty can be done by improving experiential marketing so as to satisfy customers. In college, to create student loyalty, it must be able to give an impression or experience to students, the more positive the impression or experience received by students, the greater the satisfaction which will later serve as a mediation for the formation of student loyalty. This study supports the research conducted by [22] on the effect of Experiential Marketing on Consumer Loyalty and mediated Consumer Satisfaction, Consumer Satisfaction is also able to mediate the effect of Experiential Marketing on Customer Loyalty.
M.Managerial Implications
Based on the above findings, universities should increase student satisfaction to achieve student loyalty. Students satisfaction can be obtained by providing a feeling of pleasure, comfort, providing appropriate service and reducing or eliminating complaints. Universities can apply Experiential Marketing by giving a good impression or deep experience during the process of services provided
to students. A deep impression or experience is given through the provision of adequate educational facilities, employees to serve students well, friendly and polite, the delivery of good lecture activities, the provision of facilities to correlate with each other, and built familiarity between students and lecturers.
IV. Conclusion
Based on the results of the analysis that has been carried out, it can be concluded that Experiential Marketing has a positive effect on customer satisfaction, which means that the better Experiential Marketing is, the more satisfying it will be. While Experiential Marketing has no effect on Customer Loyalty. Customer Satisfaction has a positive effect on Customer Loyalty, which means that increasing Customer Satisfaction will increase Customer Loyalty. Meanwhile, Customer Satisfaction is able to mediate the influence of Experiential Marketing on customer loyalty.
In universities, the results of this study show that student satisfaction has an important role in mediating the relationship between experiential marketing and student loyalty. In other words, student loyalty can be achieved if student satisfaction is achieved. Meanwhile, student satisfaction will be achieved if universities implement Experiential marketing, namely by providing a good and deep impression and experience in the minds of students.
Higher education as an institution engaged in services, where in the delivery of services to consumers, in this case students, must come to campus and there is interaction between students and lecturers and employees, it is very important to implement the Experiential Marketing strategy by providing a good and deep impression and experience to students. Provide magnificent buildings, good and adequate facilities, a beautiful garden will make a very good impression in the minds of students. Employees and lecturers providing good and pleasant service will give a positive impression in the minds of students. The availability of facilities to meet, discuss, organize and form a student community will provide a pleasant and memorable experience. The existence of an opportunity to develop oneself for students and a good image of the college is a very profound experience.
The deep impressions and experiences received by students will make students feel happy, comfortable, at home and reduce or even eliminate student complaints. In other words, the Experiential Marketing applied will increase student satisfaction. Satisfied students will subsequently become loyal to the college.
Recommendations
To increase student satisfaction and student loyalty, universities should increase experiential marketing by touching student emotions in order to produce a deep experience through sense, feel, think, act and relate experience in the process of delivering services. If student satisfaction increases, student loyalty will also increase.
In the next study, it is expected to add other variables that affect customer satisfaction and loyalty, such as brand image and brand trust.
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