THE FACTORS IMPACTING THE HALAL BRAND CONSUMER LOYALTY OF PT. SOKA CIPTA NIAGA
By
Nigel Philo Abdy 11403097
BACHELOR’S DEGREE in
INTERNATIONAL BUSINESS AND MARKETING
FACULTY OF BUSINESS ADMINISTRATION AND COMMUNICATION
SWISS GERMAN UNIVERSITY
The Prominence Tower
Jalan Jalur Sutera Barat No. 15, Alam Sutera Tangerang, Banten 15143 - Indonesia
AUGUST 2018
CONSUMER LOYALTY OF PT. SOKA CIPTA NIAGA
By
Nigel Philo Abdy 11403097
BACHELOR’S DEGREE in
INTERNATIONAL BUSINESS AND MARKETING
FACULTY OF BUSINESS ADMINISTRATION AND COMMUNICATION
SWISS GERMAN UNIVERSITY
The Prominence Tower
Jalan Jalur Sutera Barat No. 15, Alam Sutera Tangerang, Banten 15143 - Indonesia
Revision after the Thesis Defense on 26 July 2018
The Factors Impacting the Halal Brand Consumer Loyalty of PT. Soka Cipta Niaga
Nigel Philo Abdy Page 2 of 123
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.
Nigel Philo Abdy
____________________________________________
Student Date
Approved by:
Moch. Riyadh Rizky Adam, ST., M.S.M.
____________________________________________
Thesis Advisor Date
Dr. Nila K. Hidayat, SE., MM.
____________________________________________
Dean Date
ABSTRACT
THE FACTORS IMPACTING THE HALAL BRAND CONSUMER LOYALTY OF PT. SOKA CIPTA NIAGA
By
Nigel Philo Abdy
Moch. Riyadh Rizky Adam, ST., M.S.M.
SWISS GERMAN UNIVERSITY
Brand loyalty is the tendency of consumers to continuously purchase one brand’s products over another. Consumer behaviour patterns demonstrate that consumers will continue to buy products from a company that has fostered a trusting relationship. Loyalty is extremely beneficial to businesses as it leads to repeat purchases by consumers, higher revenues, and customer referrals. Quantitative method is used in this research by using SEM-PLS. PLS is needed to analyse the numbers resulting from the response of respondents recorded through the distribution of questionnaires. This research aims to find out the impacts of Halal Brand Image, Brand Perceived Quality, Brand Satisfaction, and Brand Trust on the Brand Loyalty of PT Soka Cipta Niaga as one of the companies that use Islamic Marketing in an unconventional product, which is Socks. The finding of this research has shown that these variables not only have an impact towards Brand Loyalty itself, rather than each other, and the results also show that Halal Brand Image has the largest impact towards all the other variables.
Keywords: Halal Brand Image, Brand Perceived Quality, Brand Satisfaction, Brand Trust, Brand Loyalty
The Factors Impacting the Halal Brand Consumer Loyalty of PT. Soka Cipta Niaga
Nigel Philo Abdy Page 4 of 123
© Copyright 2018 by Nigel Philo Abdy
All rights reserved
DEDICATION
I dedicate this work to my beloved family, for all the support and prayers they’ve blessed me with.
The Factors Impacting the Halal Brand Consumer Loyalty of PT. Soka Cipta Niaga
Nigel Philo Abdy Page 6 of 123
ACKNOWLEDGEMENTS
Above all, I would like to thank God as my largest source of strength and support.
To my family who always motivates and pray for me. May this work make them proud.
I also wish to thank the amazing lecturers of Swiss German University for guiding me throughout my university period. Especially Mr. Fiter Abadi and Mrs, Margaretha Lingga for the guidance throughout my university years. A special thank you to Mr. Rizky, who I show grate gratitude for being patient in helping and guiding me through my thesis, it would be impossible to go through this without you.
To all my dearest friends who has supported me from the beginning, Especially Marcelinus William Gani, Sutanoto Sanjaya, Leonardus Nicholas Nugrahtama, Rony Ferdinand, Johan Sudarto, Farahiyah Ghassani, Chelsea Tandry, Canny Geraldine, Ni Wayan Sekar Ayu Prabashanti, Fionna Adeline, Dinda Lestari, Azim Atlantino. Thank you for the great times and memories.
Table of Contents
STATEMENT BY THE AUTHOR ... 2
ABSTRACT ... 3
DEDICATION ... 5
ACKNOWLEDGEMENTS ... 6
List of Figures ... 10
List of Tables ... 11
CHAPTER I - INTRODUCTION ... 12
1.1 Background ... 12
1.2 Research Problem ... 16
1.3 Research Questions ... 17
1.4 Research Objectives ... 17
1.5 Scope and Limitations ... 18
1.6 Significance of Study ... 18
CHAPTER II - LITERATURE REVIEW ... 19
2.1 Conceptual Framework ... 19
2.2 Variables ... 21
2.2.1 Brand Management ... 21
2.2.2 Brand Image ... 21
2.2.3 Brand Perceived Quality ... 22
2.2.4 Brand Satisfaction ... 23
2.2.5 Brand Trust ... 24
2.2.6 Brand Loyalty ... 25
2.3 Previous Studies ... 26
2.4 Study Differences ... 31
2.5 Hypotheses ... 32
CHAPTER III - RESEARCH METHODOLOGY ... 37
3.1 Type of Study ... 37
3.2 Unit Analysis / Unit Observation ... 39
3.3 Sampling Design ... 39
The Factors Impacting the Halal Brand Consumer Loyalty of PT. Soka Cipta Niaga
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3.3.2 Sampling Method ... 40
3.3.3 Sampling Size ... 41
3.4 Timeframe of Study ... 42
3.5 Research Framework ... 43
3.6 Data Sources & Collection ... 44
3.6.1 Type of Data ... 44
3.6.2 Data Collection Method ... 44
3.6.3 Questionnaire Structure ... 46
3.7 Research Model ... 51
3.8 Operationalization Variables ... 52
3.9 Data Processing Procedures ... 55
3.9.1 Data Preparation ... 55
3.9.2 Data Screening ... 55
3.9.3 Validity Test ... 56
3.9.4 Reliability Test ... 56
3.9.5 Pre-testing ... 57
CHAPTER IV - RESULTS AND DISCUSSION ... 59
4.1 PT. Soka Cipta Niaga ... 59
4.2 Respondents Profile ... 60
4.2 Data Analysis ... 67
4.2.1 Validity and Reliability ... 67
4.3 Model Evaluation ... 74
4.3.1 Measurement Model or Outer Model Evaluation ... 74
4.4 Hypothesis Testing Result and Analysis ... 81
4.5 Discussion ... 84
4.5.1 Halal Brand Image ... 84
4.5.2 Brand Perceived Quality ... 86
4.5.3 Brand Satisfaction ... 88
4.5.4 Brand Trust ... 90
CHAPTER V - CONCLUSION AND RECOMMENDATION ... 92
5.1 Conclusion ... 92
5.1.1 Data Analysis (Pre-Test) ... 92
5.1.2 Data Analysis (Post-Test) ... 92
5.2 Recommendation ... 94
5.2.1 Managerial Implication ... 94
5.3 Future Study ... 97
References ... 98
Glossary ... 102
Appendices ... 106
Appendix 1 – Questionnaire ... 106
• Bahasa Indonesia ... 106
• English ... 111
Appendix 2 – Questionnaire Result ... 115
Appendix 3 – Pre-Test Output ... 117
• Reliability (Halal Brand Image) ... 117
• Reliability (Brand Perceived Quality) ... 117
• Reliability (Brand Satisfaction) ... 117
• Reliability (Brand Trust) ... 117
• Reliability (Brand Loyalty) ... 118
• Validity (Halal Brand Image) ... 118
• Validity (Brand Perceived Quality) ... 119
• Validity (Brand Satisfaction) ... 119
• Validity (Brand Trust) ... 120
• Validity (Brand Loyalty) ... 120
Appendix 4 – Curriculum Vitae ... 122