THE IMPACT OF PHYSICAL ENVIRONMENT ON BRAND LOYALTY WITH BRAND PREFERENCE AS AN INTERVENING VARIABLE
A CASE STUDY: GANDY’S STEAK HOUSE
By
Julita 11303040
BACHELOR’S DEGREE in
BUSINESS ADMINISTRATION-
HOTEL AND TOURISM MANAGEMENT CONCENTRATION FACULTY OF BUSINESS ADMINISTRATION AND HUMANITIES
SWISS GERMAN UNIVERSITY The Prominence Tower
Jalan Jalur Sutera Barat No. 15, Alam Sutera Tangerang, Banten 15143 - Indonesia
August 2017
Revision after Thesis Defense on July 24th 2017
Julita 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 materia l 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.
Julita
____________________________________________
Student Date
Approved by:
Yudhistira Pratama, MBA
____________________________________________
Thesis Advisor Date
Dr. Nila K. Hidayat, SE.,MM.
____________________________________________
Dean Date
Julita ABSTRACT
THE IMPACT OF PHYSICAL ENVIRONMENT ON BRAND LOYALTY WITH BRAND PREFERENCE AS AN INTERVENING VARIABLE
A CASE STUDY: GANDY’S STEAK HOUSE
By Julita
Yudhistira Pratama, MBA SWISS GERMAN UNIVERSITY
Restaurant industry become one of the most advantageous industries on generating profit. Physical appearance and cleanness of restaurant is important as customers’
consideration on forming purchase decision. Physical environment has to be properly managed to meet the preference of customer to create a great experience for them in result on strengthening the loyalty. Preference is affected by consumer’s experience base on what they feel convenience in result on increasing brand loyalty. This research will show the impact of physical environment on brand loyalty with brand preference as an intervening variable. Data collection using probability cluster sampling is used to determine the respondents. 100 questionaires will be distributed in two branches of Gandy’s Steak House which are 50 questionnaires each in Hayam Wuruk and Menteng.
Using IBM SPSS 23 software and Path Analysis Method to generate the result. After all the method had been tested which are validity, reliability, normality, heteroscedastic ity, multicollinearity and path analysis, the result of this research support and indicate that physical environment has a significant impact on brand loyalty as well as brand preference as an intervening variable has a significant impact on brand loyalty through physical environment. It is very recommended for the company to always maintain and developing physical environment based on the preference that will be a strong factor on gaining brand loyalty and in order to survive in this industry.
Keywords: Physical environment, Brand Preference, Brand Loyalty
Julita
© Copyright 2017 By Julita All rights reserved
Julita DEDICATION
I dedicate this bachelor thesis for my mom and dad, my brothers, friends, and hospitality industry especially restaurant.
Julita ACKNOWLEDGEMENTS
First and foremost, I would like to thank God for his blessing to me until now, that He always gave me strength and patient through the obstacles that I have been through. It is realized without the guidance, assistance and prayers from others this thesis will not be completed in a timely manner. Therefore, I would like to say thank you as much as possible to all my relatives that helped me through the process, namely to:
1. To my beloved parents who worked so hard to earn money so I could finish my study until universities. For both my father and mother who always support me with every path that I take and make sure that I always have my back when I am down.
2. To my beloved brothers, Andrew my eldest brother who inspired me to become a greater person and successfull like him as well as helping on my chapter 3 and 4 especially SPSS system, Edward my younger brother who make me more dilige nt and patient to become his role model.
3. Sincerely my advisor, Mr. Yudhistira Pratama for your advise, guidance, encouragement and never ending support through the process. Thank you for your kindness and capabality to become my advisor and friends at the same time without you I couldn’t finish my thesis work on time. I also thanked you for every lesson about life that you shared to me and it makes me inspired to reach a big successfull in the future
4. To my SGU lectures and staffs, thank you for your assistance and support since my first until last semester also for sharing your knowledge to me. Without you I am nothing.
5. To Gandy’s Steak House especially Hayam Wuruk and Menteng that gave a permission to do this research.
6. To Mrs. Jane Sweed, my english advisor, thank you for looking up my bad grammar in this thesis.
Julita 7. To my beloved highschool friends, Lidya Juliawati Sihombing, Stefany Sulaima n, Poriyo Santoso, Octavine Christie, Tiffany Louis and Sarah Lucia. Thank you for your support since at the beginning of my highschool until now, for always being with me through ups and downs, through all the jokes when I’m stressed out with univ stuffs. I hope we could always stay the same like this until our hair turns grey.
I love you guys.
8. To Rumah Senang and The Stupids, Ricky Kartiyanta, Ronwilson Diardo, Stanley Adrianto, Nicholas Himawan, Adrian Tanadi, Bernardus Andreas, Brigita Everline, Callista Pranylia, Nabila Hasyari, Putrie W.H, Vanessa, Chrisya Virginia. Thank you for all the laughters since day one of university, love hate relationships of ours that make me feels like home while I am with you guys, all the fantastic memories in Bali and Europe. Love you guys endlessly and see you on top.
9. To Jakbar squads, My loved ones Raven Adiputra, Carlo Clanchy, Matteo Prathama, Kevin Kurniawan, Juan Raymond, Andrey Martinus. For your endless support eventhough we are not in the same faculty or even same university. Love you guys.
Last but not least, I would like to thank of all people that I could not mention one by one that involved in this research process. I hope this thesis will be useful for others.
Julita TABLE OF CONTENTS
STATEMENT BY THE AUTHOR ...2
ABSTRACT ...3
DEDICATION ...5
ACKNOWLEDGEMENTS ...6
TABLE OF CONTENTS ...8
LIST OF FIGURES ...11
LIST OF TABLES...12
CHAPTER 1 - INTRODUCTION...13
1.1 Background... 13
1.2 Research Problem ... 17
1.3 Research Objectives ... 17
1.4 Research Questions ... 17
1.5 Significance of Study... 18
1.6 Scope and Limitation ... 18
1.7 Thesis Frame work... 19
CHAPTER 2 – LITERATURE REVIEW ...20
2.1 Frame work of Thinking ... 20
2.2 Restaurant... 21
2.2 Physical Environment ... 22
2.2.1 Dimensions of Physical Environment... 24
2.3 Brand... 26
2.4 Brand Preference ... 26
2.4.1 Indicators of Brand Preference ... 27
2.5 Brand Loyalty... 28
2.5.1 Indicators of Brand Loyalty ... 30
2.6 Previous Study ... 31
2.7 Basis of Difference... 35
2.8 Research Model ... 36
2.9 Hypothesis... 37
CHAPTER 3 – RESEARCH METHODOLOGY...38
3.1 Research Process ... 38
3.2 Type of Research ... 39
3.3 Type of Data ... 39
3.3.1 Primary Data ... 39
3.3.2 Secondary Data ... 40
3.4 Research Instrument... 40
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3.5 Ope rational Variable ... 41
3.6 Population and Sample ... 43
3.6.1 Population ... 43
3.6.2 Sample... 43
3.6.3 Sampling Method ... 43
3.7 Method of Data Analysis ... 44
3.7.1 Pre Testing... 45
3.7.1.1 Validity ... 45
3.7.1.2 Reliability... 46
3.7.1.3 Transformation Ordinal Data to Interval Data ... 47
3.7.2 Post Testing ... 47
3.7.2.1 Path Analysis... 47
3.7.2.2 Normality ... 50
3.7.2.3 Correlation Analysis... 50
3.7.2.4 Heteroscedasticity Test... 51
3.7.2.5 Multicollinearity Test ... 52
3.7.2.6. Sobel Method ... 52
CHAPTER 4 – DATA ANALYSIS ...53
4.1 Data Source... 53
4.1.1 Company Profile ... 53
4.2 Custome rs Profile... 58
4.2.1 Gender ... 58
4.2.2 Age ... 59
4.2.3 Occupation ... 60
4.2.4 Respondent’s data on “The purpose of visiting Gandy’s Steak House”... 61
4.2.5 Respondent’s data on “How much do you spend on average every visit in Gandy’s Steak House” ... 62
4.2.6 Respondent’s data on “How many times have you visited Gandy’s Steak House in the past 6 months?”... 63
4.2.7 Respondent’s data on “When did you last time visited Gandy’s Steak House?” ... 64
4.3 Data Analysis ... 64
4.3.1 Validity and Reliability Test Result... 64
4.3.1.1 Validity Test ... 64
4.3.1.2 Validity Result in Pre-Test ... 65
4.3.1.3 Validity Result in Post – Test ... 69
4.3.1.4 Reliability Test ... 73
4.3.1.5 Reliability Result in Pre -Test ... 73
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4.3.1.6 Reliability Result in Post-Test... 74
4.4 Classical Assumption Test ... 74
4.4.1 Normality Test Result ... 75
4.4.2 Heteroscedasticity Test Result ... 76
4.4.3 Multicollinearity Test Result... 76
4.5 Path Analysis Method Result ... 77
4.5.1 Sub-structure 1 ... 77
4.5.2 Sub – structure 2 ... 81
4.6 Discussion... 86
CHAPTER 5 – CONCLUSION AND RECOMMENDATION ...89
5.1 Conclusion ... 89
5.2 Recommendation... 89
GLOSSARY...93
REFERENCES...94
APPENDIX 1 ...98
APPENDIX 2 ...102
APPENDIX 3 ...106
APPENDIX 4 ...118
APPENDIX 5 ...119
CURRICULUM VITAE ...120
