Important Factors in Restaurant Design Affecting Customer Loyalty in Jakarta

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By

Kevin Juliawan Surya 13310046

I propose to the Advisors and to the Committee Members a study of the afore mentioned topic to be carried out in partial fulfillment of the requirements for

the

BACHELOR’S DEGREE In

HOTEL & TOURISM MANAGEMENT BUSINESS ADMINISTRATION

SWISS GERMAN UNIVERSITY EduTown BSD City

Tangerang 15339 Indonesia

JULY 2014

Revision after the Thesis Defense on 14th July 2014

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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.

Kevin Juliawan Surya

_______________________ _

Student Date

Approved by:

Mr. Pudyotomo A. Saroso

_______________________

Thesis Advisor Date

Prof. Eric Jos Nasution. MBA, M.A, PhD

_______________________

Dean Date

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ABSTRACT

IMPORTANT FACTOR IN RESTAURANT DESIGN THAT AFFECT CUSTOMER PREFERENCES LEADING TO CUSTOMER LOYALTY IN

JAKARTA AREA By

Kevin Juliawan Surya SWISS GERMAN UNIVERSITY Mr. Pudyotomo A. Saroso, Advisor

Customer loyalty is something that actually important and needed by every restaurant. Loyalty itself could come from the product, services and atmosphere of the restaurant. With more demanding customer, restaurant businesses face some intense competition. Restaurant design could be considered as one of the factor that could create a customer loyalty.

This thesis will take four most important factors in restaurant design, from ten factors that will be researched, which are; Ornament, Color, Lighting, Sound & Acoustic design, Material Selection, Size, Temperature, Texture, Scent, and Shapes.

This thesis focuses on Restaurant Design preferred by Jakarta citizens.

Consequently, the research method used as quantitative research. It was supported with primary data from a questionnaire using Likert scale that was collected from 100 respondents from South Jakarta.

As the result, it is found that there is significant positive influence of Restaurant design toward Customer Loyalty by 88% and the factor of Restaurant Design that has the highest influence on Customer Loyalty are Material selection, Sound &

Acoustic design, Texture, and Temperature. Based on this observation, the restaurant should improve their restaurant design in order to obtain customer loyalty, and the 4 highest factors mentioned above should be maximized, so that it can influence customer loyalty at the highest level.

Keywords: Restaurant, Restaurant design, Customer Loyalty, Interior, Ambiance

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© Copyright 2014 By Kevin Juliawan Surya

All rights reserved

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DEDICATION

I dedicated this thesis for my beloved parents who always motivate me and give me a suggestion in taking my future path. Thanks for your support and always remind me to do my thesis.

To the restaurant industry, I hope that this thesis will give a contribution and help the industry in a positive way.

To everyone that reads and needs the content of my thesis, I dedicate this

thesis for you for a good purpose and I hope this thesis could help and assist

you for your further research.

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ACKNOWLEDGEMENTS

I would like to acknowledge and extend my gratitude to the following persons who have made the completion of this thesis possible:

First and foremost, I would like to thank God, whose many blessings have made me who I am today.

To my thesis Advisor, Mt. Pudyotomo A. Saroso, I would like to express my gratitude for his guidance whilst allowing me the room to work in my way.

To the most awesome English teacher ever, Justin Harrison, I really appreciate his assistance to finalize this thesis. Thank you for caring.

To all lecturers and SGU staffs, whose have been helpful and assisted me in the completion of this thesis.

To Mr. Oqke Prawira who indirectly motivated me to doing this thesis.

I would also like to thank you my classmates, Septiana Fajar Maharani, Monalisa, Aditya Nova, Gisca, Josephine, Riesta, Jesslyn, Andreas, Rizky, Whose always been there to help my thesis work.

To Salim, Kelvin, Juan, Andrew, my best friend, thank you for always insult me but care to me.

Last but not least, to all those who provided me the possibility to complete this

thesis. Thank you.

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List of Tables

Table 2. 1 Restaurant Type Classification ... 20

Table 2. 2 Previous Study ... 43

Table 3. 1 Research Process ... 44

Table 3. 2 Population and Sample ... 47

Table 3. 3 Research Instrument ... 47

Table 3. 4 Questionnaire ... 53

Table 3. 5 KMO & Bartlett’s Test ... 55

Table 3. 6 Goodnes Fit of Criteria ... 56

Table 4. 1 Descriptive Analysis ... 67

Table 4. 2 Case Processing Summary (Pre-Testing) ... 68

Table 4. 3 Reliability Statistics (Pre-Testing) ... 68

Table 4. 4KMO and Bartlett's Test ... 68

Table 4. 5 KMO Post Testing ... 69

Table 4. 6Reliability Statistics ... 69

Table 4. 7 Goodnes Fit ... 76

Table 4. 8 P-value Table... 77

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List of Figures

Figure 2. 1 Research Model ... 39

Figure 4. 1 Gender Demographic ... 63

Figure 4. 2 Age Demographic ... 64

Figure 4. 3Job Demographic ... 65

Figure 4. 4 Last Education Demographic... 66

Figure 4. 5 Structural Equation Model ... 70

Important Factors in Restaurant Design Affecting Customer Loyalty in Jakarta

By

Kevin Juliawan Surya 13310046

I propose to the Advisors and to the Committee Members a study of the afore mentioned topic to be carried out in partial fulfillment of the requirements for

the

BACHELOR’S DEGREE In

HOTEL & TOURISM MANAGEMENT BUSINESS ADMINISTRATION

SWISS GERMAN UNIVERSITY EduTown BSD City

Tangerang 15339 Indonesia

JULY 2014

Revision after the Thesis Defense on 14th July 2014

STATEMENT BY THE AUTHOR

Kevin Juliawan Surya

___________________________________ _____________

Student Date

Approved by:

Mr. Pudyotomo A. Saroso

___________________________________ ____________

Thesis Advisor Date

Prof. Eric Jos Nasution. MBA, M.A, PhD

___________________________________ ____________

Dean Date

ABSTRACT

IMPORTANT FACTOR IN RESTAURANT DESIGN THAT AFFECT CUSTOMER PREFERENCES LEADING TO CUSTOMER LOYALTY IN

JAKARTA AREA By

Kevin Juliawan Surya SWISS GERMAN UNIVERSITY Mr. Pudyotomo A. Saroso, Advisor

© Copyright 2014 By Kevin Juliawan Surya

All rights reserved

DEDICATION

I dedicated this thesis for my beloved parents who always motivate me and give me a suggestion in taking my future path. Thanks for your support and always remind me to do my thesis.

To the restaurant industry, I hope that this thesis will give a contribution and help the industry in a positive way.

To everyone that reads and needs the content of my thesis, I dedicate this

thesis for you for a good purpose and I hope this thesis could help and assist

you for your further research.

ACKNOWLEDGEMENTS

I would like to acknowledge and extend my gratitude to the following persons who have made the completion of this thesis possible:

First and foremost, I would like to thank God, whose many blessings have made me who I am today.

To my thesis Advisor, Mt. Pudyotomo A. Saroso, I would like to express my gratitude for his guidance whilst allowing me the room to work in my way.

To the most awesome English teacher ever, Justin Harrison, I really appreciate his assistance to finalize this thesis. Thank you for caring.

To all lecturers and SGU staffs, whose have been helpful and assisted me in the completion of this thesis.

To Mr. Oqke Prawira who indirectly motivated me to doing this thesis.

I would also like to thank you my classmates, Septiana Fajar Maharani, Monalisa, Aditya Nova, Gisca, Josephine, Riesta, Jesslyn, Andreas, Rizky, Whose always been there to help my thesis work.

To Salim, Kelvin, Juan, Andrew, my best friend, thank you for always insult me but care to me.

Last but not least, to all those who provided me the possibility to complete this

thesis. Thank you.

Table of Contents

List of Tables

Table 2. 1 Restaurant Type Classification ... 20

Table 2. 2 Previous Study ... 43

Table 3. 1 Research Process ... 44

Table 3. 2 Population and Sample ... 47

Table 3. 3 Research Instrument ... 47

Table 3. 4 Questionnaire ... 53

Table 3. 5 KMO & Bartlett’s Test ... 55

Table 3. 6 Goodnes Fit of Criteria ... 56

Table 4. 1 Descriptive Analysis ... 67

Table 4. 2 Case Processing Summary (Pre-Testing) ... 68

Table 4. 3 Reliability Statistics (Pre-Testing) ... 68

Table 4. 4KMO and Bartlett's Test ... 68

Table 4. 5 KMO Post Testing ... 69

Table 4. 6Reliability Statistics ... 69

Table 4. 7 Goodnes Fit ... 76

Table 4. 8 P-value Table... 77

List of Figures

Figure 2. 1 Research Model ... 39

Figure 4. 1 Gender Demographic ... 63

Figure 4. 2 Age Demographic ... 64

Figure 4. 3Job Demographic ... 65

Figure 4. 4 Last Education Demographic... 66

Figure 4. 5 Structural Equation Model ... 70

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