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THE INFLUENCE OF CUSTOMER SATISFACTION TOWARD SWITCHING BEHAVIOR AMONG

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Nguyễn Gia Hào

Academic year: 2023

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The F-Test result showed that all independent variables have significant simultaneous influence on switching behavior. Thank you for the endless love, moral and material support, endless blessing, for all the guidance, patience, motivation that brings strength in any kind of situation during the progress of the script.

INTRODUCTION

  • Background
  • Problem Identification
  • Statement of Problem
  • Research Objective
  • Significance of Study
  • Scope and Limitation
    • Scope
    • Limitation
  • Thesis Organization

The researcher tries to identify the significant influence of switching costs, service quality, trust and innovation in relation to switching behavior on Go-Ride and GrabBike. The research study was conducted for "Influence of Customer Satisfaction towards Customers Switching Behavior among President University's Students (A Study Case of Go-ride and Grab bike in Jababeka, Cikarang)".

LITERATURE REVIEW

  • Customer Satisfaction
  • Switching Cost
  • Service Quality
  • Trust
  • Innovation
  • Switching Behavior
  • Previous Research
  • Research Gap

The findings of the study confirm a significant negative relationship between customer satisfaction and brand switching intention. This study analyzes the creation of customer satisfaction and loyalty together with the impact of switching costs in the mobile service market by comparing networked – so-called traditional – and virtual mobile services in order to empirically and conceptually explore the differences between these mobile service operators.

Table 2.1 Previous Research
Table 2.1 Previous Research

RESEARCH METHODOLOGY

  • Research Method
  • Theoretical Framework
  • Hypothesis
  • Research framework
  • Operational Definition
  • Research Instrument
    • Primary Data
    • Secondary Data
  • Validity and Reliability
    • Validity Testing
    • Reliability Testing
  • Classical Assumption Testing
    • Normality Test
    • Heteroscedasticity Test
    • Multicollinearity test
    • Population
    • Sample
  • Descriptive Analysis
    • Weighted Mean
    • Standard Deviation
  • Multiple Regression Analysis
  • Hypotheses Testing
    • T-test
    • F-Test
    • The coefficient of determination (R²)

Therefore, every 1 unit of increasing level of service quality will be able to increase the positive significant impact of switching behavior. In other words, the switching behavior of a President University student between Go-Ride and GrabBike may be influenced by the switching cost. In other words, President University student's behavior between Go-Ride and GrabBike can be influenced by the service quality.

All variables (switching costs, service quality, trust and innovation) are simultaneously significant for switching behaviour. In other words, the switching behavior of President University student between Go-Ride and GrabBike can be influenced by customer satisfaction.

Figure 3.1 Theoretical Framework  Source: Kumaresh (2011) and Takbir (2016) Switching Cost
Figure 3.1 Theoretical Framework Source: Kumaresh (2011) and Takbir (2016) Switching Cost

RESULT AND DISCUSSIONS

Validity and Reliability Test

  • Validity Test
  • Reliability Test

The researcher uses r-table to determine the validity of each of the statements, the result of each statement must be higher than the value of r-table. Based on table 4.1, all statements, both independent variables (switching costs, service quality, trust, innovation) and dependent variable. To determine whether the statement is reliable, the researcher checked the outcome of Cronbach's alpha.

Table 4.2 Reliability Test Switching Cost Result  Reliability Statistics
Table 4.2 Reliability Test Switching Cost Result Reliability Statistics

Classical Assumption Testing

  • Normality Test
  • Heteroscedasticity Test
  • Multicollinearity Test

Apart from Histogram, P-P Plot is also used to determine whether the data is normally distributed or not. Based on the above data, it can be concluded that the data is normally distributed. 44 This test is used to understand whether there is any equal variance in remaining data or not.

From the data obtained above, it can be seen that the points are widely spread and thus the multiple regression equation is good as the residuals have different variance. From the above data, it can be concluded that the independent variables of this research do not have multicollinearity between each other, because all tolerance values ​​are above 0.1 and all VIF values ​​are above 0.1 and below 10.

Figure 4.3 Scatterplot
Figure 4.3 Scatterplot

Demographic Data

  • Respondent Screening
  • Respondent Profile

45 From the data result above, it can be concluded that all the respondents in this research have ever used Go-Ride or GrabBike. This phenomenon may happen due to the instruction of the researcher not to continue filling out the questionnaire if the respondent has never used Go-Ride or GrabBike. Based on the Figure 4.5, it shows that there are 174 male respondents or 47% respondents who filled the questionnaire and continued.

In this study, Business Administration students made the largest contribution, at 69% of the total number of respondents. This can happen because the number of business students is highest among all majors, so the opportunity to meet management students is greater than others.

Figure 4.5 Respondent Profile: Gender
Figure 4.5 Respondent Profile: Gender

Descriptive Analysis

  • Gender
  • Batch Descriptive Data
  • Faculty Descriptive Data

Overall, based on the table, journal 2018 has the highest average for four variables which are service quality, trust, innovation and liaison behavior. This indicates that most of the President University student group 2015 to 2018 strongly agree with the statements about Switching Costs. Overall, based on the table, computer science students have the overall highest average for five variables which are switching cost, service quality, trust, innovation and switching behavior.

In addition, the aspect that influences the switching behavior of most President University students is the switching costs with an average of 3.74. It indicates that most students at President University strongly agree with the statements about switching costs.

Table 4.9 Descriptive Data on Batch
Table 4.9 Descriptive Data on Batch

Multiple Regression Analysis

Based on the analysis, switching cost has significant positive impact on switching behavior because the significant value is lower than the 0.05 significance level. Based on the analysis, service quality has significant positive impact on switching behavior because the significant value is lower than the 0.05 significance level. Based on the analysis, trust has significant positive impact on switching behavior because the significant value is lower than the 0.05 significance level.

Therefore, every 1 unit of the increasing confidence level will be able to amplify the positive significant influence of switching behavior. Based on the analysis, innovation has a positive significant influence on switching behavior because the significance value is lower than the significance level of 0.05.

Hypotheses Testing

  • T-Test
  • F-Test
  • Coefficient of Correlation (R) and Coefficient of Determination (R 2 ) . 55
  • Switching Cost (SC) toward Switching Behavior
  • Service Quality (SQ) toward Switching Behavior
  • Trust (TS) toward Switching Behavior
  • Innovation (IN) toward Switching Behavior
  • Switching Cost, Service Quality, Trust, Innovation toward Switching

This means that the switching cost variable is significant or influences the switching behavior of the President University student between Go-Ride and GrabBike. In other words, innovation is significant or influences the switching behavior of students of President University between Go-Ride and GrabBike. It means that customer satisfaction (switching costs, service quality, trust and innovation) has a positive influence on switching behaviour.

In other words, the switching behavior of a President University student between Go-Ride and GrabBike can be influenced by Trust. In other words, the President University student's switching behavior between Go-Ride and GrabBike can be influenced by the innovation.

Table 4.13 F-Test  ANOVA a
Table 4.13 F-Test ANOVA a

CONCLUSION AND RECOMMENDATIONS

Conclusion

The existence of GrabBike which recently and then became a new competitor with Go-Ride led researcher to conduct phenomenological research to provide clear explanation and understanding regarding the phenomena. Customer satisfaction is one of the most important concerns in the company to be able to compete and survive in the market, as the performance of the company will affect the loyalty and purchase decision of the buyer, which will lead to switching behavior. There are few main problems to be questioned in this research, that is, whether all customer satisfaction variables are simultaneously significant for customer switching behavior, and each variable of customer satisfaction is partially significant for switching behavior.

Recommendation

  • For Go-Ride
  • For GrabBike
  • For Future Research

The Impact of Switching Costs on Customer Satisfaction-Loyalty Link: Mobile Phone Service in France', Journal of Services Marketing, Vol. Retrieved on November 22, 2018, from https://www.liputan6.com/tekno/read/3289198/go-jek-grab-dan-uber-orang-indonesia-eel-sering-pakai-apa. Retrieved November 2018, from e-math zone website: http://www.emathzone.com/tutorials/basic-statistics/weighted-arithmetic-mean.html.

Diakses pada 25 November 2018 dari http://www.tribunnews.com/business impact-positive-economic-digital-terhadap-pereconomic-nasional. Diakses pada 29 Oktober 2018, dari situs web Laerd Statistics: https://statistics.laerd.com/spss-tutorials/cronbachs-alpha-using-spss-statistics.php.

I find no criminality and any fraud carried out by GrabBike driver or grab bike customer service. I prefer to choose GrabBike because the fee I pay for GrabBike is cheaper than Go-Ride. I prefer to choose GrabBike because the service quality provided by GrabBike is better than Go-Ride.

Correlation r Formula

A result of 0, on the other hand, means that there is no linear relationship between the two variables. The closer the value of r gets to zero, the greater the variation of the data points around the line of best fit. So the researcher chooses Pearson Product Moment Correlation by using the SPSS 24.0 software to meet the instrument validity requirement.

The reliability test of a measure indicates the extent to which it is unbiased (error-free) and thus. The reliability of a measure is an indication of the stability and consistency with which the instruments measure the concept and helps assess the goodness of the measure (Bougie, Sekaran, & Roger, 2010).

Cronbach's Alpha Formula

In a multiple regression equation, it is necessary to be tested for the same or not the variance of the residuals of the observations with other observations. Sampling Design is a part of statistical methodology that relates to taking a portion of the population. By definition, the population is the group to which a researcher wants the results of the study to be generalized.

A sample was a subset of the population studied (Richardson, 2005), which included the process of selecting a pair (samples) from a larger group (the 0.34 population sample) to become the basis for estimating or predicting a fact, situation, or outcome related to the larger group. According to Kumar (2010), samples should be as large as possible. In general, the larger the sample, the more representative and generalizable the results of the study.

Slovin Formula

The data has been statistically analyzed using IBM SPSS Windows version 24.0, where a conclusion of this study is expected to be drawn. To give each item in question due importance, number weight is given for each item in relation to its relative importance.

Mean Formula

Standard Deviation Formula

Therefore, every 1 unit of the increasing level of switching costs will be able to increase the positive significant influence of switching behavior. Therefore, every 1 unit of the increasing level of innovation will be able to amplify the positive significant influence of switching behavior. It means that all independent variables (switching costs, service quality, trust and innovation) simultaneously have a positive and significant influence on switching behavior if the F-value is less than 0.05.

This result of data means that the service quality variable is significant whether it affects the switching behavior of President University student between Go-Ride and GrabBike. This means if the company has poor service quality, there will be switching behavior in consumer. This result of data means that the trust variable is significant whether it affects the switching behavior of President University student between Go-Ride and GrabBike.

Table 4.1 Validity Test Result
Table 4.1 Validity Test Result

Gambar

Table 2.1 Previous Research
Figure 3.1 Theoretical Framework  Source: Kumaresh (2011) and Takbir (2016) Switching Cost
Figure 3.2 Research Framework  Source: Self-Developed
Table 3.1 Operational Definition
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