This thesis entitled "IMPACT OF SERVICE QUALITY ON CUSTOMER LOYALTY AT PAPA RON'S PIZZA CIKARANG" prepared and submitted by Haris Haridha as partial fulfillment of the requirement for a bachelor's degree at the Faculty of Economics has been reviewed and found to be a fulfilled thesis suitable to be examined. The judging panel declares that the thesis entitled "THE INFLUENCE OF SERVICE QUALITY TOWADS CUSTOMER LOYALTY AT PAPA RON'S PIZZA CIKARANG", submitted by Haris Haridha, majoring in International Business from the Faculty of Economics, was assessed and approved as having passed the oral examination . Maret 6th , 2012. I declare that this thesis entitled "THE INFLUENCE OF SERVICE QUALITY TOWARDS CUSTOMER LOYALTY AT PAPA RON'S PIZZA CIKARANG" is, to the best of my knowledge and belief, an original work that has not been submitted either in its entirety or partially to another university to obtain a degree.
This research proposed to analyze the influence of service quality consisting of tangible, empathy, assurance, reliability and responsiveness towards customer loyalty at Papa Ron's Pizza Cikarang. The purpose of this research is also to know there is an influence of service quality variables partially and simultaneously on customer loyalty. This indicates that Tcount > Ttable means that partially service quality variables significantly affect customer loyalty.
This indicates that Fcount > Ftable, means that service quality variables simultaneously significantly influence customer loyalty. Consequently, researcher gives a suggestion to the management of Papa Ron's Pizza Cikarang to pay more attention to increasing service quality and customer satisfaction because this factor is the most dominant factor in building customer loyalty.
INTRODUCTION
- Research Background
- Company Profile
- Problem Identified
- Statement of Problem
- Research Objective
- Significance of the study
- Theoretical Framework
- Scope and Limitation of the Study
- Hypothesis
- Definition of Term
4 Papa Ron's Pizza Cikarang is managed by a manager who always supervises all activities in the restaurant. Are service quality variables (tangibles, empathy, safety, reliability and responsiveness) that partially influence customer loyalty at Papa Ron's Pizza Cikarang. Are service quality variables (tangibility, empathy, safety, reliability and responsiveness) that simultaneously affect customer loyalty at Papa Ron's Pizza Cikarang.
To partially know the influence of service quality on customer loyalty at Papa Ron's Pizza Cikarang. At the same time, to know the influence of service quality on customer loyalty at Papa Ron's Pizza Cikarang. By doing this research, it can be a key to know whether service quality affects customer loyalty at Papa Ron's Pizza Cikarang.
This research focuses on the topic: the impact of service quality on customer loyalty in Papa Ron’s Pizza Cikarang. Service quality (SERVQUAL): is a set of functions and characteristics of a service that affect its ability to satisfy stated or implicit needs (Kotler and Keller, 2009).
LITERATURE REVIEW
- Understanding Quality
- Definition of Service Quality
- Capturing the Customer’s Perspective of Service Quality
- Service Quality Dimension
- Measuring and Improving Service Quality
- Understanding Customer and Its Define Quality
- Customer Loyalty
- The Search for Customer Loyalty
- Building Customer Loyalty
- Measuring Customer Loyalty
- Relationship Between Service Quality and Customer Loyalty
- Previous Study
Assurance – the knowledge and courtesy of employees and their ability to convey trust. Based on Lovelock et al. 2009), customer-defined service quality standards and criteria can be grouped into two broad categories: "soft" and "hard". According to marketing experts Don Peppers and Martha Rogers (cited in Kotler and Keller, 2009), “the only value your business will ever create is the value that comes from customers—those you have now and those who you will have them in the future.
Various studies have examined the relationship between service quality and customer loyalty. In Cronin and Taylor's study (cited in Akbar and Parvez, 2009), service quality did not appear to have a significant (positive) effect on repurchase intentions (in contrast to the significant positive effect of satisfaction on repurchase intentions), while Boulding et al. . cited in Akbar and Parvez, 2009) found positive relationships between service quality and repurchase intentions and willingness to recommend. In another study, Rusdarti (cited in Sunarto, 2006) found that service quality has a significant impact on customer loyalty.
Based on explanation above, it could be seen that there is a strong relationship between service quality and customer loyalty. Customer satisfaction has been shown to be an important mediator between perceived service quality and customer loyalty 2 Sunarto.
METHODOLOGY
- Research Method
- Time and Place of Research
- Research Instrument
- Question Form
- Instrument Distribution
- Scaling
- Sampling Design
- Population
- Sampling
- Validity and Reliability Testing
- Validity
- Reliability
- Data Analysis
- Hypothesis Testing
In this part, researcher collects the data by using questionnaire which provides any questions related to service quality to the customer who comes to the restaurant. Self-administered questionnaire used in this research, so the researcher personally distributes the questionnaire and the respondent waits while they answer or fill the questionnaire, and after completion the questionnaire will be presented directly to the researcher. In this case, the researcher did not know the actual number of population of this research because there are so many customers of Papa Ron's Pizza Cikarang (unknown population) and will be increasing anytime.
Based on the calculation, the researcher got 173.79 for the total minimum sample and decided that 174 sample will be used in this research. Before calculating the data, the researcher must establish the validity and reliability of the data. Based on Cooper and Schindler (2008), reliability testing is used to measure the reliability of an instrument used in data collection.
So, if the instrument is reliable, the researcher can use the instrument several times in the same object to collect the necessary data. In this research, statistical method that is used to analyze data, it means that the data that is processed with analyze the statistics that do to process quantitative data. Then, after getting the data from the questionnaire, researcher used the SPSS system to calculate the data.
This method used to measure that there is a significant influence independent (tangibility, empathy, security, reliability and responsiveness) against dependent at the same time. Normality test is used to determine the normality of the data distributed in statistics. Based on Yustisia, E., (2008), the normality of data distribution can be determined from residual values that are normally distributed.
Statistical test done based on normal distribution so before analyzing the data the normality assumption is required because the analysis requires the data to be normally distributed. H0 accepted as Fcount < F-table at α = 5% significance level means that service quality has no significant influence on customer loyalty at Papa Ron's Cikarang. 36 Ha accepted as Fcount > Ftable at α = 5% significance level means that service quality has a significant influence on customer loyalty at Papa Ron's Cikarang.
ANALYSIS OF DATA AND INTERPRETATION OF RESULTS
- Characteristic of Respondent
- Result of Validity and Reliability Testing
- Result of Validity Testing
- Result of Reliability Testing
- Classic Assumption
- Normality Test
- Multicollinearity Test
- Heteroscedasticity
- Description of Variables
- Tangible
- Empathy
- Assurance
- Reliability
- Responsiveness
- Customer Loyalty
- Analysis Factors Influencing Customer Loyalty
- Hypothesis Testing
Tangible is one of five variables that can influence customer loyalty in a company or industry. Based on table 4.10, it can be seen that the average mean of the empathy variables is 3.492, which means that most respondents agree with the statement in the questionnaire about empathy. 46 Based on Table 4.11, the average mean of the certainty variables is 3.356, which means that most of the respondents agree that the Papa Ron's Pizza Cikarang employee really needs the variable to build customer loyalty.
Reliability can also be a variable that can influence customer loyalty in a particular company or industry. The respondent has a positive perception about the responsiveness of Papa Ron's Pizza Cikarang employees, which can help the restaurant build customer loyalty. Based on table 4.14, it could be seen that the average mean of the customer loyalty variables is 3.339.
49 affect customer loyalty, such as enhancing their service in order to increase customer satisfaction so that the restaurant can build more customer loyalty. This research identified the impact of service quality (tangibility, empathy, security, reliability and responsiveness) on customer loyalty at Papa Ron's Pizza Cikarang. The material regression coefficient (X1) is 0.181, it means that in every 100% change of customer loyalty (increase), the tangible factors will relatively affect customer loyalty worth 18.1%.
So if the restaurant improves their tangible factors, it will increase the customer loyalty in the restaurant. Coefficient regression of empathy (X2) is 0.260, which means that for every 100% change in customer loyalty (increasing), empathy factors will relatively affect customer loyalty with value 26%. Safety regression coefficient (X3) is 0.199, which means that for every 100% change in customer loyalty (increasing), insurance factors will relatively affect customer loyalty by a value of 19.9%.
The regression coefficient of reliability (X4) is 0.364, which means that for every 100% change in customer loyalty (increasing), reliability factors will relatively influence customer loyalty with a value of 36.4%. The regression coefficient of responsiveness (X5) is 0.260, which means that for every 100% change in customer loyalty, the responsiveness factors will relatively influence customer loyalty by a value of 26%. With that calculation it could be concluded that the researcher accepted Ha and rejected H0, meaning that independent variables consisting of tangible (X1), empathy (X2), certainty (X3), reliability (X4) and responsiveness (X5) have a significant influence. towards customer loyalty in Papa Ron's Pizza Cikarang.
CONCLUSION AND RECOMMENDATION
Conclusion
Recommendation
Analisis faktor-faktor yang mempengaruhi loyalitas nasabah dan dampaknya terhadap keunggulan bersaing (Studi pada BRI Kanca Kendal Britama Spaar). Empati (kesediaan untuk peduli terhadap karyawan, memberikan perhatian pribadi kepada pelanggan, mudah terlibat dan memantau kebutuhan dan keinginan pelanggan). Responsiveness (kesediaan untuk cepat membantu memberikan pelayanan kepada pelanggan) 14 Karyawan bersedia menjawab semua orang.
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