The Influence Word of Mouth, Taste, Quality of Service on Customer Trust and Purchase Decisions at Rawon Nguling Cabang Kendangsari Embranchment Rungkut

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The Influence Word of Mouth, Taste, Quality of Service on Customer Trust and Purchase Decisions at Rawon Nguling Cabang Kendangsari Embranchment Rungkut

Kota Surabaya

Wardah Nur Ubay Bafadhal

Departement of Management, Narotama University Surabaya Jl. Arief Rachman Hakim No. 51 Surabaya, Indonesia

bafadhalwarda@gmail.com

Abstract

Word of mouth works on brand shifting seven times more than news and journals, four times as much as sales of a salesperson, and twice as much as advertising on radio (Hasan 2013: 28). This study aims to analyze the influence and significance of the influence of Word of Mouth, Taste, Service Quality on Customer Trust and Purchase Decisions at Rawon Nguling Restaurant, Kendangsari Rungkut embranchment, Surabaya City. This research is a quantitative research. The research data are primary and secondary data obtained from a sample of 100 consumer respondents at the Rawon Nguling Kendangsari Rungkut Restaurant, Surabaya. The sample collection technique was carried out using an online questionnaire. The data analysis technique used Partial Least Square (PLS) which was processed with Smart PLS 3.6.8 software. The results showed that the variables Word of Mouth and Taste did not have a significant effect on Customer Trust and Purchase Decisions. While the Service Quality variable has a significant effect on Customer Trust and Purchasing Decisions. Therefore, Rawon Nguling Restaurant should focus much more on strengthening the embranchment identity by enriching the taste of the Rawon Nguling Restaurant's products itself.

Keywords :

Customer Trust, Rawon Nguling Restaurant’s, Word of Mouth.

1. Introduction

Rawon Nguling restaurant is a restaurant business that has been around for a long time until now. This Rawon Nguling restaurant business initially only had 1 (one) branch but now it has 7 (seven) branches in the Surabaya, Sidoarjo and Probolinggo areas. In order to be able to compete between similar businesses, the owner must be able to plan a marketing strategy and commitment in developing his/her business. The following data is presented on the sales development of Nguling restaurant, Kendang Sari embranchment, Rungkut, Surabaya City.

Figure 1. Rawon Nguling Restaurant Sales Development Graphic, Kendangsari Rungkut – Surabaya (Sourche : RM Rawon Nguling Kendang Sari Rungkut Surabaya, 2019)

From the data above, it can be seen that Rawon Nguling Restaurant in 2019 went through a decreasing sales. This condition can reduce the interest towards the Indonesia culinary business of Rawon Nguling.

Therefore, the authors are interested in examining consumer trust and purchasing decisions with the factors that influence. According to Gefen, D, Straub (2004), it concluded that the more consumer trust level, the more the level of consumer purchase intention.

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2 2. Literature Review

2.1. Word of Mouth (WOM)

Word of mouth works on brand shifting seven times more than news and journals, four times as much as sales of a salesperson, and twice as much as advertising on radio (Hasan, 2010). WOM can also be defined as a customer for customer communication about goods and services according to (Wikipedia, 2014). Word of mouth is concerned with the process of transferring information from one person to another through oral communication. The concept of word of mouth has become an important term in the marketing activities that carried out by various organizations. Interpersonal communication or word of mouth has become important in consumer decision making. Word of mouth is increasingly very effective and appropriate if WOM can be used as a promotional medium because of the majority of Indonesian people actually like to talk about other people.

2.2. Taste (CR)

Taste is a case that should be important to note in buying food and drinks that we consume. In our society now, taste is a way of selecting food or drinks that are distinguished from these tastes according to (Pratiwi &

Halimatus Marpaung, (2020). According to Idris., Kusasi. (2017) Taste is a way of selecting food that must be distinguished from the taste of the food and also taste is an attribute of food or drink which includes appearance, smell (aroma), taste, texture, and temperature. Taste is a form of cooperation of the five kinds of human senses, namely taste, smell, touch, sight, and hearing. Taste itself is the result of the tastebuds which are in position of tongue, cheeks, throat, roof of the mouth, which are part of the taste.

2.3. Quality of Service (KP)

According to its definition, quality is a dynamic condition that affects products, services, people, processes and the environment that fulfill or exceed the expectations of (Imanuel Adhitya Wulanata Chrismastianto, 2017). According to Siti Husna Ainur Syukri (2014) form a service quality model that highlights the main requirements for providing the expected service quality.

2.4. Customer Trust (CT)

According to (Mowen, 2002) consumer trust is all knowledge possessed by customers and all conclusions made by customers about objects, attributes, and benefits. Meanwhile, according to Etta Mamang Sangaji (2013) trust is the power that a product has certain attributes. Trust is an important thing for a commitment or promise, and commitment can only be realized if it means something on the next day. Trust is defined as a willingness to rely on an exchange partner in whom one has confidence Moorman (1993). The willingness does not suddenly appear by itself from the customer, but arises because there is activity. This was said by Rousseau, "Trust is not itself a behavior nor a choice but an underlying condition that can result from such activities.

2.5. Purchasing Decisions (KP)

According to Febriyanti, (2016) argues that consumer decision making is an integrating process that combines knowledge to evaluate two or more alternative behaviors and choose one of them. According to Kotler, P., & G, (2008) consumer purchasing decisions are inseparable from how consumers go through several stages, namely knowing the problems faced until the occurrence of consumer purchasing transactions and purchasing decisions are the stage of the decision process where consumers actually purchase products.

3. Research Concept Structure

Figure 2. Research Concept Structure (Source : Writer)

Word of Mouth

Taste

Quality of Service

Purchasin g Customer

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3 4. Methodoloy

This research is a quantitative descriptive study using primary and secondary data as research material. In this study, the variables used consisted of five variables, three variables were independent variables (free) namely Word of Mouth (X1), Taste (X2), Purchasing Decision (X3), one intervening variable, namely Customer Trust (Y1). ) and Purchase Decisions (Y2) as the dependent variable (bound).

Hypothesis testing in this study was carried out by doing Bootstrapping. After a bootstrapping testing process is carried out, the output results obtained are as follows:

Figure 3. Result of Diagram After Bootstrapping Analysis Source : Data is processed with SmartPLS, 2020 The criteria for acceptance or rejection of the hypothesis is that the hypothesis is accepted if the t-statistic shows a value greater than the t-table value, which is 1,985 and if the p-value is less than 0.05. if it does not meet the criteria above, the hypothesis is rejected.

1. First Hypothesis Testing (Word of Mouth has a significant effect towards Customer Trust) Table 1. First Hypothesis Test

Path Coefficient

Original Sample

(O)

Sample Mean (M)

Standar Deviation (STDEV)

t- Statistic (1O/STDEV1)

P- Value WOM (X1) −> CT (Y1) 0.313 0.313 0.153 2.049 0.041

Source : Data is processed with SmartPLS 3.6.8, 2020

Based on table 1. the test results show that the word of mouth variable (X1) has a significant effect towards Customer Trust (Y1) because the t-statistic value is greater than the t-table value, which is 2,049 and the p-value is smaller than 0.05, namely of 0.043. This means that the first hypothesis is accepted.

2. Second Hypothesis Testing (Word of Mouth has a significant effect towards Purchasing Decisions) Table 2. Second Hypothesis Test

Path Coefficient

Original Sample

(O)

Sample Mean (M)

P- Value WOM (X1) −> KP (Y2) 0.130 0.124 0.119 1.097 0.273

Based on table 2, it shows that the Word of Mouth (X1) variable has no significant effect towards Purchasing Decisions (Y2) because the t-statistic value is smaller than the t-table, which is 1.097 and the p-value is greater than 0.05, which is 0.273. This means that the second hypothesis is rejected.

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3. Third Hypothesis Testing (Tates has a significant effect towards Customer Trust Tabel 3. Third Hypothesis Test

Path Coefficient

Original Sample (O)

Sample Mean (M)

P- Value CR (X2) −> CT (Y1) -0.053 -0.048 0.182 0.291 0.771

Based on table 3. it shows that the Taste variable (X2) has no significant effect towards Customer Trust (Y1) because the t-statistic value is smaller than the t-table, which is 0.291 and the p-value is smaller than 0.05, which is 0.771. This means that the third hypothesis is rejected.

4. Fourth Hypothesis Testing (Taste has a significant effect towards Purchasing Decisions) Table 4. Fourth Hypothesis Test

Path Coefficient

Original Sample (O)

Sample Mean (M)

P- Value CR (X2) −> KP (Y2) -0.004 -0.001 0.139 0.032 0.975

Based on table 4. it shows that the Taste variable (X1) has no significant effect towards Purchasing Decisions (Y2) because the t-statistic value is smaller than the t-table, which is 0.032 and the p-value is greater than 0.05, which is 0.975. This means that the fourth hypothesis is rejected.

5. Fifth Hypothesis Testing (Service Quality has a significant effect towards Customer Trust) Table 5. Fifth Hypothesis Test

Path Coefficient

Original Sample (O)

Sample Mean (M)

P- Value

KL (X3) −> CT (Y1) 0.568 0.570 0.142 4.008 0.000

(Source : Data is processed with SmartPLS 3.6.8, 2020)

Based on table 5, it shows that the Service Quality variable (X3) has a significant effect towards Customer Trust (Y1) because the t-statistic value is greater than the t-table, namely 4.008 and the p-value is less than 0.05, which is equal to 0.000. This means that the fifth hypothesis is accepted.

6. Sixth Hypothesis Testing (Service Quality has a significant effect towards Purchasing Decisions) Table 6. Sixth Hypothesis Test

Path Coefficient

Original Sample (O)

Sample Mean (M)

P- Value

KP (X3) −> KP (Y2) 0.428 0.427 0.144 0.144 2,975

Based on table 6, it shows that the Service Quality variable (X3) has a significant effect towards Purchasing Decisions (Y2) because the t-statistic value is greater than the t-table, which is 0.144 and the p-value is smaller than 0.05, which is 2,975. This means that the sixth hypothesis is accepted.

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7. Seventh Hypothesis Testing (Customer Trust has a significant effect towards Purchasing Decisions) Table 7. Seventh Hypothesis Test

Path Coefficient

Original Sample

(O)

Sample Mean (M)

P- Value

CT (Y1) −> KP (Y2) 0.402 0.405 0.131 3.080 0.002

Based on table 7, it shows that the Customer Trust variable (Y1) has a positive and significant effect towards purchasing decisions (Y2) because the t-statistic value is greater than the t-table, which is 3.080 and the p value is less than 0.05, which is equal to 0.002. This means that the seventh hypothesis is accepted.

4.1 Indirect Effect Results

Tabel 8. Ther Result of Indirect effect Indirect Effect Spesific Result Original

Sample (O)

Sample Mean (M)

P- Value WOM (X1) −> CT (Y1) −> KP

(Y2)

0.126 0.125 0.076 1.648 0.100

CR (X2) −> CT (Y1) −> KP (Y2)

-0.021 0.017 0.078 0.273 0.785

KP (X3) −> CT (Y1) −> KP (Y2)

0.228 0.230 0.094 2.420 0.016

Based on table 8 above, it can be seen that the results of the indirect effect are as follows:

1. The table above shows that the variable word of mouth (X1) does not have a significant indirect effect towards purchasing decisions (Y2) through customer trust (Y1) because the results of the t-statistic are smaller than the t-table, that is 1,648 and the p-value is greater than 0.05 which is equal to 0.100.

2. The table above shows that the taste variable (X2) does not have an indirect significant effect towards purchasing decisions (Y2) through customer trust (Y1) because the results of the t-statistic are smaller than the t-table, that is 0.273 and the p-value is greater than 0.05. which is equal to 0.785.

3. The table above shows that the service quality variable (X3) has an indirect significant effect towards purchasing decisions (Y2) through customer trust (Y1) because the results of the t-statistic are greater than the t-table, that is 2.420 and the p-value is greater than 0.05, that is of 0.016.

5. Discussion of Research Results Direct Influence :

1) Effect of Word of Mouth (X1) towards Customer Trust (Y1)

The results of data processing show that the first hypothesis is accepted because the t statistic value is 2.037> t-table 1.985 and the p-value is 0.043 <0.05.

The results of this study are supported by the research of Methaq Ahmed Sallam (2016) entitled "An Investigation of Corporate Image Effect on WOM: The Role of Customer Satisfication and Trust". With the results of research that shows that Word of Mouth has a significant effect towards Customer Trust.

This shows that it will further increase Customer Trust at Rawon Nguling Restaurant.

2) Effect of Word of Mouth (X1) towards Purchasing Decisions (Y1)

The results of data processing show that the second hypothesis is rejected because the statistic value is 1.097 <t-table 1.985 and the p-value is 2.273> 0.05.

The results of this study are inversely proportional to the results of research (Yuliati, 2017) ,entitled "The Influence of Word of Mouth on Purchasing Decisions (Studies on consumers of Waroeng Steak and Shake Jln.

Banteng No.14 Bandung" which states that there is a significant influence between Word of Mouth and Purchase Decisions. Word of Mouth affects brand switching seven times more than news and journals, four times as much as sales of a salesperson, and twice as much as advertising on radio (Hasan, 2010) . Word of Mouth should be considered as the most effective way to the purchasing decisions, but within the scope of consumers of Rawong Nguling Restaurant, it turns out that the Word of Mouth is still not enough to increase Purchasing Decisions at Rawon Nguling Restaurant.

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6 3) Effect of Taste (X2) towards Customer Trust (Y1)

The results of data processing show that the second hypothesis is rejected because the t statistic value is 0.291 <t-table 1.985 and the p-value is 0.071> 0.05.

The results of this study are inversely proportional to the results of research by (Utami, 2018) entitled

"The Influence of Brand Image and Customer Trust and Customer Loyalty in Bebek Sinjay Bangkalan which states that there is a significant influence between Brand Image and Customer Trust. Brand image and brand association are consumer perceptions that may or may not reflect reality objectively. In company positioning, brand image is one of the methods often used by (Ismail, Abdurrahman Affandi, 1982) .Taste should be considered as an important factor or identity towards Customer Trust, but within the scope of consumers of Rawong Nguling Restaurant, it turns out that Taste is still unable to increase Customer Trust at Rawon Nguling Restaurant.

4) Effect of Taste (X2) towards Purchasing Decisions (Y2)

The results of data processing show that the fourth hypothesis is rejected because the t statistic value is 0.032 <t-table 1.985 and the p-value is 0.975> 0.05.

The results of this study are inversely proportional to the results of Maimunah (2019) study entitled "The Effect of Service Quality, Price Perception, Taste towards Customer Satisfaction and Consumer Loyalty" which states that there is a significant influence between Taste and Consumer Loyalty. Taste is one of the popular forms of a way of selecting food which can be distinguished from the existence of typical food, it is from the taste of Drummond KE dan Brefere LM. (2010) should also be considered as an important factor in improving Purchasing Decisions.

5) Effect of Service Quality (X3) towards Customer Trust (Y1)

The results of data processing show that the fifth hypothesis is accepted because the statistic value is 4.008> t-table 1.985 and the p-value is 0.000 <0.05.

The results of this study are supported by the research of (Pramana, 2016) entitled "The Effect of Service Quality towards Customer Trust and Customer Loyalty at Bank Mandiri Veteran Embranchment Denpasar Bali" with the results of research showing that Service Quality has a significant effect towards Customer Trust.

This shows that the more the quality of service is improved, the more customer trust will be at Rawon Nguling Restaurant.

6) Effect of Service Quality (X3) towards Purchasing Decisions (Y2)

The results of data processing show that the sixth hypothesis is accepted because the statistic value is 0.144> t-table 1.985 and the p-value is 2.975 <0.05.

This result is inversely proportional to the research of F.C. Polla., L., Mananeke. (2018) entitled

"Analysis of the Effect of Price, Promotion, Location and Service Quality on Purchasing Decisions" with research results showing that Service Quality has no significant effect.

This shows that the more improving the quality of service, the more it will increase the purchase decision at the Rawon Nguling Restaurant.

7) Effect of Customer Trust (Y1) towards Purchasing Decisions (Y2)

The results of data processing show that the seventh hypothesis is accepted because the t-statistic value is 3.080> t-table 1.985 and the p-value is 0.002 <0.05.

The results of this study are in accordance with the theory that put forward by L. P. M. Adolf., S. L. H.

V. J. Lepian. (2020), in his research entitled "The Effect of Social Media Marketing and the Word of Mouth on Purchase Decisions at Coffee Shops in Manado". The consumer purchasing decision process involves five stages, they are problem recognition, information retrieval, and evaluating alternatives, purchasing decisions, and post-purchase decisions. "The purchasing process begins when consumers recognize a problem or need. Consumers then develop attention to find information that satisfies their needs.

This shows that the more the level of Customer Trust, the more purchasing decisions will be made at Rawon Nguling Restaurant.

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7 5.1. Indirect Influence

Based on the results of the analysis carried out using SmartPLS as in table 4 it can be concluded that the variables of Word of Mouth (X1), Taste (X2) and Service Quality (X3) have a direct effect towards Purchasing Decisions (Y2) through Customer Trust (Y1) . The results that show the t-statistic value that is smaller than the t-table and the p-value that is greater than 0.05 can mean that the Customer Trust variable as the variable.

Intervening in this study is able to be a mediation so that it can strengthen the influence of Word of Mouth, Taste and Service Quality which are independent variables on Purchasing Decisions as the dependent variable. This result is comparable to several previous studies which also used as Customer Trust as an intervening variable such as research conducted by L. P. M. Adolf., S. L. H. V. J. Lepian. (2020), in their research entitled "The Effect of Social Media Marketing and Word of Mouth towards Purchase Decisions at Coffee Shops in Manado" based on the results of the t-statistic test which is greater than the t-table and p-value is less than 0.05.

6. Conclusion And Suggestion 6.1 Conclusion

Based on the problems that have been formulated, the results of the analysis and hypothesis testing that has been carried out in the previous chapter, then from the research carried out the following conclusions can be drawn:

6.2 Direct Effect

1. The results of data processing show that there is a significant influence between the Word of Mouth variable towards Customer Trust. This shows that the Word of Mouth carried out by consumers of Rawon Nguling Restaurant, in order to make consumers feel like they want to directly buy or eat at Rawon Nguling Restaurant.

4. The results of data processing show that there is no significant influence between the Word of Mouth variable towards Purchasing Decisions. This shows that consumers of Rawon Nguling Restaurant must increasingly use the Word of Mouth in order to further encourage the Purchase Decision of Rawon Nguling Restaurant.

5. The results of data processing show that there is no significant influence between Taste and Customer Trust. This shows that the more appropriate the taste at Rawon Nguling Restaurant, the more customer trust will increase the consumers of Rawon Nguling Restaurant.

6. The results of data processing show that there is no significant influence between the Taste variable towards the Purchasing Decision. This shows that the Taste variable will not further increase the desire of consumers to make purchasing decisions.

7. The results of data processing show that there is a significant influence between Service Quality variables towards Customer Trust. This shows that the more improvement of quality of service at Rawon Nguling Restaurant, the more Customer Trust will increase in consuming Rawon Nguling.

8. The results of data processing show that there is a significant influence between Service Quality variables towards Purchasing Decisions. This shows that the best of the quality of service at Rawon Nguling Restaurant according to consumers, the more consumer interest in making purchases will also increase.

9. The results of data processing show that there is a significant influence between Customer Trust variables towards Purchasing Decisions. This shows that the higher level of Customer Trust at Rawon Nguling Restaurant, the more consumers will be interested in making Purchasing Decisions.

6.3 Indirect Effect

1. Based on the results of the analysis, it can be concluded that the Word of Mouth (X1) variable does not have a significant indirect effect towards Purchasing Decisions (Y2) through Customer Trust (Y1). This shows that the suitability of brand identity with the needs of consumers at Rawon Nguling Restaurant through Customer Trust is not able to increase consumer interest in making Purchasing Decisions at Rawon Nguling Restaurant.

2. Based on the results of the analysis, it can be concluded that the Taste variable (X2) does not have a significant indirect effect towards Purchasing Decisions (Y2) through Customer Trust (Y1). This shows that the suitability of brand identity with the needs of consumers at Rawon Nguling Restaurant through Customer Trust is not able to increase consumer interest in making Purchasing Decisions at Rawon Nguling Restaurant.

3. Based on the results of the analysis, it can be concluded that Service Quality (X3) has a significant direct effect towards Purchasing Decisions (Y2) through Customer Trust (Y1). This shows that the Quality of Service at Rawon Nguling Restaurant through Customer Trust (Y1) is able to increase consumer interest in making Purchasing Decisions at Rawon Nguling Restaurant.

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9 6.4 Suggestion

1. Based on conclusions above, the researcher has several suggestions which are expected to be useful for Rawon Nguling Restaurant and future researchers. The following suggestions that researchers can provide include:

2. Reminding the results of research that show that Taste does not have a significant effect towards Customer Trust and Purchasing Decisions, Rawon Nguling Restaurant should allocate funds to collaborate with professional chefs as a product marketing medium, as business advisors because many consumers have switched to the menu that is currently hits in the current era so that consumers pay more attention and participate in promoting the culinary heritage of Rawon Nguling.

3. Rawon Nguling can allocate more funds for other promotional activities such as holding giveaways and getting dine-in vouchers, promotions via Instagram are also very effective in getting consumers to come and buy at Rawon Nguling.

4. Based on the results of distributing questionnaires, the variable price Taste has the highest average answer value among other variables. This means that consumers' perceptions of the Taste at Rawon Nguling Restaurant have the most important role so that Rawon Nguling Restaurant can continue to maintain the Taste and carry out the promotions by giving discounts on each product.

5. For further researchers who want to do research on the relationship between Youtube Taste with Customer Trust and with the interest of Purchasing Decisions by using more specific research indicators, for example by determining which taste variables are more specific to be used as research objects.

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