ISSN 1450-2267 Vol. 54 No 3 March, 2017, pp.316-331 http://www.europeanjournalofsocialsciences.com/
An Investigating on the Purchase Intention: Developing Dealers Reputation through Customer Trust and Service Quality
Sri Widyastuti Department of Management
Faculty of Economic and Business, University of Pancasila Jl. Srengseng Sawah – Jagakarsa – South Jakarta Indonesia
Hendro Prasetyo Department of Management
Faculty of Economic and Business, University of Pancasila Jl. Srengseng Sawah – Jagakarsa – South Jakarta Indonesia
Irvandi Gustari Department of Management
Faculty of Economic and Business, University of Pancasila Jl. Srengseng Sawah – Jagakarsa – South Jakarta Indonesia
Abstract
Demand for automotive products in Indonesian market is quite high, being one of the reasons why automotive companies have sprung up in Indonesia and presented more competitive products and services. However, for a company as a dealer, there is a question whether it is able to raise consumer confidence by providing service quality aimed at encouraging customers to increase their purchase intention with after-purchase services. Another question is whether the company can develop a positive reputation as a dealer who gives confidence and the best service. This research was conducted through a questionnaire distributed to 250 subscribers of Prima Honda Dealer in Jakarta. The research method is descriptive verification and data processing is using SEM. The results show that the company is able to develop the intermediary’s reputation through customer confidence and service quality provided to customers. In addition, the company is able to establish the trust and service quality which affect purchase intention through the development of positive intermediary’s reputation. Purchase intention through after-sales service is gained by customers through regular service maintenance in accordance with standards, the ability of its top engineers, professional Service Advisor, corrective settlement which is in accordance with the specified time, and reliable equipment.
Keywords: trust, service quality, reputation, purchase intention.
Introduction
These days, tight competition requires every company to be able to play a marketing strategy that is reliable and able to attract consumers so as to win the market. There are many large companies but weak in positioning the reputation and the company reputation, so many find obstacles related to their stakeholders. This puts the company in a difficult business, let alone face a number of competitors.
One industry where competition is tight and dynamic is automotive industry. The automotive manufacturers compete to create innovative products in accordance with their respective reputations. In Indonesia, there are seven leading automotive companies that are known for their brands and have a
pretty good market, named Honda, Toyota, KIA, Suzuki, Mitsubishi, Hyundai, and Nissan.
Competition in the automotive industry is fairly tight in terms of product, price, and service quality which are taken into consideration by the stakeholders, especially customers as users. Indonesia’s market demand level is high enough, arguably one of the triggers why automotive companies have sprung up in Indonesia and present more competitive products. The company's success in influencing consumer purchasing decisions is influenced by the effort to foster consumer confidence. If the company is said to be able to demonstrate that it is trustworthy to consumers, consumers will trust the company and form a pattern of relationship, Storbacka & Lehtinen (2002). It takes a long time to build a good reputation. Companies that have a good reputation in the eyes of consumers, in general, will attract potential customers because they believe that the company is qualified and trustworthy. This is because in the eyes of consumers, the trustworthy company is a guarantee for the consistency of product performance and provides any benefit sought by consumers when buying products from the company. Reputation is an intangible asset that is valuable to the company because it will be a top priority for consumers to use the products or services from the company with good performance compared to its competitor, Diredja (2012).
By understanding the high level of competition, the company that puts customer as its biggest asset is going to be the winner. Whether they are good, bad, or indifferent, every customer has experience the company, products, and services provided. In fact, only a few companies actually manage the quality of their customer service well. As a result, many occasions to maintain customer loyalty disappeared. The customer is the soul of every existing business, and making customers satisfied until they want to come back is the key to grow a business. As emerging industries, the four wheel automotive industries never escape the tighter competition; one of them is indicated by the presence of the automotive industry newcomers from developing countries who offer products that are competitive with more affordable prices and old competitors who continue to innovate to seize the market. In its efforts to maintain the existence and dominance in the increasingly fierce competition of this, the automotive manufacturers continue trying to reach out across both domestic and global markets by expanding the sales and after-sales service.
In this condition, increasing sales and using of cars, in general, can be seen as an opportunity to expand market share. However, because of the high level of competition, the customer will have more than one preferred automotive service providers--the automotive service being meant is service center (workshop). So, it is difficult to determine the level of customer loyalty in performing regular maintenance of the vehicle. The number of new entrepreneurs in the business services sector in the field of four wheel vehicles service exhibits a phenomenon supported by increasing consumer demand.
This is in line with the development pattern of the dynamic life of a modern society where the vehicle functions are needed to support their activities. Dealers also provide after-sales service, they are the provision of spare parts and service center to enable customers to perform periodic maintenance of the vehicle but often customers are less able to find the optimal and reliable services, so as to establish a good reputation for customers and to be able to increase purchase intention. Based on the background of the above problems, the problems identified in this study are as follows: How dealer establishes trust and service quality affects purchase intention through intermediary reputation. In addition, understanding whether customer trust and service quality affect dealer reputation.
Literature Review Dealer Reputation
Company reputation describes company image received by consumers. Consumer perception towards company image may affect the valuation of the company's products (Gregory, 1999). The company's reputation refers to an evaluation of the stakeholders in a company, which is based on impressions from consumer companies, Gotsi & Wilson (2001).
One relationship between social responsibility and corporate performance is through the aspects of reputation (Bronn & Vrioni, 2001). The company's reputation may involve assessing the company's success in carrying out social responsibility and economic performance of companies, Etzioni (1988).
Social responsibility becomes an alternative means of communication and marketing when the product is relatively the same price offered by the competitor. Good corporate reputation is a resource that is scarce and valuable to the company. Good corporate reputation can be a source of competitive advantage. Hassan (2013) argued that the view of the company for the future was to understand the importance of social awareness as leverage to improve their reputation.
Researches of Hsu (2012); Ker (2012) stated that the perception of policy regarding CSR initiatives in life insurance company had a positive effect on customer satisfaction, corporate reputation, and brand equity. Customer satisfaction does not have a mediating effect on the relationship between CSR and corporate reputation.The study conducted by Sen & Bhattacharya (2001); Graham &
Fearn (2005) showed the positive influence of its corporate social responsibility towards company reputation. As one of the intangible assets, company reputation can improve the competitiveness of companies. The formation of company reputation does not happen in a short time but through a long process. Therefore, company reputation is an asset that is rare and difficult to be imitated. Companies now are expected to take into account all aspects of their performance explicitly, not only the financial results but also their social and environmental performance, Jye & Castka (2009).
A positive brand and its personal interaction are vital to the development of successful brand relationship (O'Laughlin et al, 2004). Brand reputation has an influence on the formation of a strong brand relationship (Thomas & Veloutsou, 2013). Brand heritage has an important role as drivers the company's reputation and customers that have an impact on the formation of perceived value and impact on the brand image and customer purchase intentions, Klaus et al. (2013). Patricia et al (2014) stated that hospitality was encouraged to project a positive reputation to the stakeholders, thus the organization had developed a program identity. Prasit & Nik, (2014) discovered the full mediating effect on the attitude variable between perceived value and corporate reputation. Attitude is a partial mediator when tested on the relationship between trust and corporate reputation. Manager view reputation varies on the performance of employees and have a significant influence on employee views about the reputation. Companies can manage how employees viewed from the resulting performance that showed his reputation, Isabel et al (2014).
Purchase Intention
Purchase intention was a possibility of the consumers to plan or willing to buy the certain product or service in the future. Das et al, (2014) stated that when the measurement is assumed to have a low compatibility with major brands and high affective trust, perceived quality significantly affects more for brand association with superior so that some can increase purchase intentions. There are significant influences of quality, perceived quality, and trust in the intentions to purchase, (Chinomona et al, 2013;
Wang, 2014). Social influence had a high effect compared with other factors like relative profit, price and compatibility in attracting the purchase intention, (Ghorbani & Salehi, 2014). There was a relation among the relative profit, price, compatibility, social influence with the purchase intention, (Ibrahim et al, 2013). When consumers see the advertising social-adjustive, then the extrinsic religiously of consumer purchase intention was higher than intrinsic, (Pace, 2014). There are a significant positive influence on fashion involvement impulse purchases on hedonistic consumption, (Haq et al 2014).
Kuo, (2014). Online shopping experience and online shopping habits revealed an increase in repurchase intentions. Spontaneous purchases not only leads to higher customer satisfaction and customer expectations but also strengthens the intention to repurchase, Chinho & Watcharee (2014).
Brand personality variables such as sincerity, competence and sophistication have an influence on the establishment of customer purchase intentions, (Othman & Rahman, 2014). There are relationship between the electronic word mouth with brand image and consumer purchase intention, (Torlak et al 2014). Consequences of perceived service quality includes trust, satisfaction, brand
performance and behavioral intentions, Parves & Ho (2014). Saeed et al (2016) in his research stated that the store atmosphere has a significant influence on the hedonic and utilitarian shopping value, hedonic and utilitarian shopping value has a significant influence on customer satisfaction and purchase intentions. Quality of service is proved be multidimensional and relevant to build customer satisfaction and trust, Antonio & Pedro (2015). The influence of emotional trust on purchase intentions are stronger than cognitive trust, Huei et al (2015).
Ayesha (2015) research results showed that all three variables, perceived quality, customer value and the perceived risk have a major impact on consumer purchase intentions. The relationship between perceived trust and purchase intentions are stronger for customers who feel the high-value services, rate positively associated with the perception of product quality and purchase intent, Andrew et al (2014). Overall mobile operators and service quality for the customer's intent switch mobile products significantly affect the customer's intent to switch providers, Xianghui (2014). Perceived service quality becomes the most important factor and managers need to better understand about customer behavior to improve service quality in order to create value and satisfy customers, Cheng et al (2014). Sign manufacturers had an effect on purchase intention of brand stores, Cristina et al (2016).
The quality of service had a significant positive effect on purchase intentions and personal brand, the quality of service is also positive and significant impact on the perceived value. Furthermore, the perceived value has a significant positive effect on purchase intentions and personal brand and a private brand image have a significant positive effect on purchase intentions and personal brand, Morteza (2016).
Service Quality
Service quality is a perception of overall quality revolution which is thinkable and becomes an idea that should be formulated (formulation) so that its application (implementation) could be tested again (evaluation), to be a dynamic, ongoing, continuous process to fulfill customer satisfaction, Stemvelt (2004). Gilbert (2004) also stated that service quality encouraged customers to a commitment to products and services of a company so that it had an impact on improving the market share of a product, and service quality was crucial in order to retain customers for a long time. Service quality is a strong predictor of customer satisfaction; there is a significant relationship between service quality and customer satisfaction, Naeem et al (2009). Service quality perceived is the total evaluation for customers after receiving the service and service quality perceived has a positive impact on customer satisfaction, Li (2013). Relational benefits influence customer loyalty, and customer satisfaction with employees affects customer loyalty, which is partially mediated by the impact of employee satisfaction, Liu & Huang (2014).
Further study of Hazra (2009) showed that the public sector banks also had to go forward and tried their best to provide better quality service to win back the loyalty and commitment to their customers. Consumers with high individualism expect empathy and lower guarantee from the service provider, Dash & Acharya (2009). The restaurant qualities (physical environment, food, and services) have a positive effect on customer perceived value. The mental picture of the restaurant has a positive effect on perceived value and customer satisfaction, customer perceived value has a positive effect on customer satisfaction, and customer satisfaction has a positive impact on behavioral intentions, Koshki et al (2014). Enhancements in reliability (dimensions of service quality) create different commitment and customer willingness to pay, whereas the increase in security (dimensions of service quality) creates different loyalty to the company, Hazra & Srivastava (2009). Student satisfaction on service quality received is measured in terms of the appearance of the facilities, equipment, staffing, and physical communication using SERVQUAL model. There is a significant change in the level of service quality on customer age, education and length of saving, empathy, and physical evidence is the most important dimension, Hussein et al (2003). Customer satisfaction plays a role as a mediator of service quality on service loyalty, Mosahab, R. (2010). Results of satisfaction in service recovery are the result of behavior that consists of word of mouth, customer loyalty, and trust, Piarala et al (2014). Service
quality provided by the company plays an important role in generating and maintaining the loyalty of their customer behavior in the long term and it is important for the sustainability of the business, Moisescu & Gică (2014).
The research results from Hefer (2014) showed that perceptions about the tangibility of service, as well as the overall satisfaction level of service, received slightly above average, Drivers of customer equity (brand value and relationships) can be combined with service quality (SERVQUAL), Rosenbaum & Wong (2009). To measure customer response in accordance with the level of intention, customer response is divided into categories: those who are satisfied with the quality of the mechanism, and those who are not happy, Iqbal (2014). The existence of high-quality services led to a superior perceived value, customer satisfaction, and perceptions that benefit the company reputation.
Perceived customer value is also found to affect customer satisfaction, the reputation of the hotel, and customers may choose the organization and recommend it to others, Hsin et al (2009). The service quality of shops has positive effects that can improve consumer perceptions of private label brand reputation, Wu et al (2011). In restaurant business, a satisfied customer will come back and give a word of mouth. Restaurant produces a repeating pattern of purchase with six significant attributes, i.e.
food quality, service quality, food and service consistency, menu variety, relationship cost/price-value, atmosphere/ ambiance and cleanliness, Josiam (2014); Intan, et al (2015).
Customer Trust
Trust is the conviction of a party concerning the purpose and behavior of the other party. Thus the consumer confidence is defined as the consumer expectation that service providers can be trusted or relied upon to fulfill his pledge, Sirdesmukh et al (2002). Trust is the belief that the other party is reliable and not manipulative and committed to its promises. The trust is based on integrity, virtue, and competence, Luhmann, (1979). Belief is regarded as very important to maintain and improve relations and reduce the perception of risk effectively. In the mind of the consumer at the time he wanted to hold a relationship is whether the company can be trusted, Griffin (2005). If the company is said to be able to demonstrable that it is trustworthy to consumers, consumers will trust the company and form a pattern of relationships, Storbacka & Lehtinen (2002). Trust dimensions are described dimensions of a business relationship that determine the degree to which each party feels, and the integrity of the promise offered. Jones et al (2009) proposed a model of key performance which linked strategic marketing decisions on key value program, namely by improving relationships, trust, and profitability.
The findings of the study Delgado & Munuera (2005) stated that the company brand trust is an important factor when consumers make purchase decisions, and work to establish the reputation or corporate image. Previous research of Lin, et al (2011) has been asserted that the basic consumer trust are divided into four dimensions: basic cognition, basic affect, basic experience and personality- oriented. Pour & Peikani, (2013), in a study explained the impact of systematic marketing on customer loyalty of Bank Tejarat in Tehran. Bowen & Shoemaker (2003) emphasized that the benefits of the products and services became the first element of loyalty and the second main element of loyalty was trust because trust could not be easily imitated by competitors. Research from Mohamad (2015) showed that customer satisfaction is a positive and significant impact on the trust in the brand; trust in the brand and significant positive effect on customer retention. Reichheld & Schefter (2000) showed to obtain customer loyalty companies first had to gain customer trust. Comprehensively important factors are required to achieve a high quality of service that will significantly impact on customer trust, satisfaction, and loyalty, Shpëtim, (2012).
Based on the literature review and theory presented above, a model framework can be made as shown below:
Figure 1: Theoretical model of the study
Dealer Reputation
(Y)
Purchase Intention
(Z)
Service Quality (X2) Customer Trust
(X1)
On the framework described above, a research hypothesis that will be tested and proven to be true is then taken up, namely:
H1: Customer trust affects purchase intention H2: Service quality affects purchase intention
H3: Customer trust, and service quality affect purchase intention H4: Customer trust affects dealer reputation
H5: Service quality affects dealer reputation
H6: Customer trust, and service quality affect dealer reputation
H7: Customer trust, and service quality affect purchase intention through dealer reputation.
Research Design and Procedures
The category of this research is causal research to measure the relationship between variables or more.
In the primary data collection done by the survey, the questionnaires are addressed to customers who are doing regular maintenance at Prima Honda Dealer. Its sample is determined by purposive sampling of 250 customers.
This study hypothesizes that customer trust and service quality affect purchase intention through dealer reputation; intermediate focal constructs are in a latent structure model. Thus, in the structural equation model, customer trust and service quality is an exogenous construct and purchase intention and dealer reputation are endogenous constructs (Figure l). The instrument is composed of 33 measurement items. The measurement items relate to the constructs of customer trust, service quality, dealer reputation, and purchases intention. This study uses items which have effectively measured these constructs based on their high level of reliability and validity in previous research. However, modifications have been made on certain measures to make them more appropriate for the context of this study. All constructs were operationalized by using multi-item measures. Table 1 presents a listing of the constructs and measures employed in the study. Measurements were made using a questionnaire in five-point likert scale, ranging from "1 = strongly disagree" to "5 = strongly agree" was used to obtain responses from the survey. The variable is based on customer trust (X1), Griffin (2005), Storbacka (2001), Jones et al (2009), competence, integrity, and credibility. Variable quality of service (X2) refers Stemvelt (2004), Gilbert (2004), Li (2013), Dash and Acharya (2009), responsiveness, assurance, and empathy. Variable dealer reputation (Y) based on the findings (O'Laughlin et al, 2004).
(Thomas & Veloutsou, 2013), Patricia et al (2014): brand reputation and emotional brand. The variable of purchase intention (Z) refers to Naeem et al (2009). Hartono (2013), Andrew et al (2014). i.e. re- purchase, recommend, and be reluctant to move.
Table 1: Latent and manifest variables used to test the hypotheses of the study
Latent Variables Manifest variables
Customer Trust (X1)
Regular maintenance according to standard The ability of its top engineers
Professional Service Advisor
Improvements in accordance with the time
Service Advisor provides accurate information on the problems in customers' vehicles Technicians perform repairs in accordance with customer complaints
Technicians are reliable in performing repair and maintenance of vehicles The equipment used can be trusted to perform vehicle maintenance The accuracy of estimated repair costs given by Service Advisor
Service Quality (X2)
Employees are quick in providing services
Employees are always responsive to help consumers
Employees are committed to responding to demand and consumer complaints
Service Advisor is able to answer consumer questions regarding complaints of vehicles when conducting regular maintenance
Employees give assurance in the transaction Employees are always polite
Employees give individual attention to each customer Employees provide a convenient service to customers The employees treat all customers in a special way
Dealer Reputation (Y)
Dealer’s brands are special Dealer’s brands are famous Dealer’s brands give happiness
Dealer’s brands give a positive impression Dealer’s brands give pride
Purchase Intention (Z)
Back to the dealer for secure transactions Back to the dealer for a reliable technician ability
Back to the dealer for its employees when providing fast care Giving recommendations for dealer services according to standards
Giving recommendations for the time of repair and maintenance in accordance with the promise Giving recommendations to family and relatives as guaranteed quality of its service
Customers love to do regular maintenance at the dealer Customers like doing regular maintenance at the dealer Customers are satisfied doing regular maintenance at the dealer
Validity explain the degree to which the instrument can measure what is to be measured, and the degree to which instrument measures should mean (Lawrence & Martin, 2001). In the present study, there are three tests used to measure the validity of latent constructs and to ensure receipt of the instrument (Hennig-Thurau et al, 2001; Morgan & Hunt, 1994). These includes content validity, convergent validity and discriminant validity. Content validity is degree to which the contents of the test or questionnaire covering the breadth and depth of topics and are intended to cover. Construct validity, including convergent validity and discriminant validity, assess degree to which the measurement is represented and logical question. All items in this study are valid.
Reliability was conducted to assess the quality of data. A reliability test was used to assess the consistency of the measurement item. Cronbach's alpha was used to measure the internal consistency of measurement items. The value of Cronbach’s alpha should exceed 0.70 as suggested by Hair et al (2009). Provides the Cronbach’s alphas for scale items used in this study. All items in this study are reliable because they have Cronbach's alpha above 0.70.
Results and Discussion
Table 2 presents the socio-demographic data, such as gender, occupation, and household income per month. These data were included in the survey instrument in order to explore the characteristics of customers.
Table 2: Demographic Profile of the Sample
Variable Category Percentage
Gender Male 56
Female 44
Occupation
Entrepreneur 26
Employee 30
Housewife 26
College student 18
Household income
Less than IDR 2,000,000 per month 10
IDR 2,000,001 - IDR 5,000,000 per month 47
IDR 5,000,001 - IDR 10,000,000 per month 20
More than IDR 10,000,000 per month 23
Table 3: Average Value of Descriptive Statistics Total Score of Research Variables
N Minimum Maximum Mean Std. Deviation
Customer Trust 200 3.70 5.00 4.2980 .37765
Service Quality 200 3.80 5.00 4.3550 .36746
Dealer Reputation 200 3.76 5.00 4.2544 .36754
Purchase Intention 200 3.60 5.00 4.3830 .38299
Valid N (list wise) 200
The table above shows that of the two independent variables, the average score of the total respondents to variable intention purchase is occupying the highest average, followed by the intermediate reputation, service quality, and customer trust. So, descriptively there is a tendency that it is almost the same for all variables; all variables get a good agreement from the customers.
Table 4: Model Suitability Measurement
Indicator GOF Expected Measurement Estimation Result Conclusion Measurement Absolute Fit
GFI GFI > 0.90 0.96 Good Fit
RMSEA RMSEA < 0.08 0.039 Good Fit
Incremental Fit Measurement
NNFI NNFI > 0.90 0.99 Good Fit
NFI NFI > 0.90 0.99 Good Fit
AGFI AGFI > 0.90 0.94 Good Fit
RFI RFI > 0.90 0.98 Good Fit
IFI IFI > 0.90 1.00 Good Fit
CFI CFI > 0.90 1.00 Good Fit
Based on Table 4, the entire size of the suitability obtained has a suitability index measurement model good (good fit). Chi-square = 52.05, df = 38, P-value = 0.06408, and RMSEA = 0.039. Full model equations using the SEM program LISREL 8:30 trajectory diagram obtained two models, i.e.
standardized models and models of t-values. Below a model t-values is presented in the following figure:
Figure 2: t-Value Model
Table 5: Hypothesis Testing Results
Hypothesis Description Std. Loading
Factor
T value
/F value
T Criteria / Fcriteria
Test results
Statistics Conclusion H1 Customer trust affect the purchase
intention
0.19 2.45 1.96 Significant H1 accepted H2 Service quality affect the purchase
intention
0.39 3.12 1.96 Significant H2 accepted H3 Customer trust and service quality
affect the purchase intention
0.48 36.07 3.84 Significant H3 accepted H4 Customer trust affect the dealer
reputation
0.29 3.12 1.96 Significant H4 accepted H5 Service quality affect the dealer
reputation
0.57 5.62 1.96 Significant H5 accepted H6 Customer trust and service quality
affect the dealer reputation
0.81 226.39 3.84 Significant H6 accepted H7 Customer trust and service quality
affect the purchase intention through the dealer reputation
0.85 226.39 3.84 Significant H7 accepted
Hypothesis 1: Customer trust affects purchase intention. Based on Table 5, the standard loading factor of +0.19 indicates that customer trust variable (X1) has a positive influence on purchase intention (Z). If the t-statistic value> t criteria, then the regression coefficient is significant. Value t value variable customer confidence (X1) is 2:45 and t criteria with the test done one side at the α 5% is worth 1.96 so that t value greater than t criteria (2:45> 1.96), then H0 rejected and H1 accepted, meaning that customer trust variable significantly influences purchase intention.
Hypothesis 2: Quality of care affects purchase intention. Based on Table 5, the standard loading factor of +0.39 indicates that the variable quality of service (X2) has a positive influence on the intention of the purchase (Z). If the t-statistic value> t criteria, then the regression coefficient is significant. Value t value variable quality of service (X2) is 3:12 and t criteria with the test done one
side at the α 5% is worth 1.96 so that t value is greater than t criteria (3:12> 1.96), then H0 rejected and H1 accepted, meaning that service quality variable significantly influences purchase intention.
Hypothesis 3: Customer trust and service quality affect purchase intention. Based on Table 5, the standard loading factor of +0.42 indicates that customer trust variable (X1) and service quality (X2) has a positive influence on purchase intention (Z). If the F-statistic value > F criteria then the regression coefficient is significant. Value F value in the variable customer confidence (X1) and quality of service (X2) is 36.07 and t criteria with the test done one side at the α 5% is worth 3.84 so that t value is greater than t criterion (36.07> 3.84), then H0 rejected and H1, meaning that service quality variable significantly influences purchase intention.
Hypothesis 4: Customer trust affects the intermediary’s reputation. Based on Table 5, the standard loading factor of +0.29 indicates that customer trust variable (X1) has a positive effect on the reputation of an intermediary (Y). If the t-statistic value> t criteria, then the regression coefficient is significant. Value t value variable customer confidence (X1) is 3:12 and t criteria with the test done one side at the α 5% is worth 1.96 so that t value greater than t criteria (3:12> 1.96), then H0 rejected and H1 accepted, meaning that the variable trust customer significantly affect the intermediary’s dealer reputation.
Hypothesis 5: Service quality affects the intermediary’s reputation. Based on Table 5, the standard loading factor of +0.57 indicates that service quality variable (X2) has a positive influence on the intermediary’s reputation (Y). If the t-statistic value> t criteria, then the regression coefficient is significant. Value t value service quality variable (X2) is 3:12 and t criteria with the test done one side at the α 5% is worth 1.96 so that t value is greater than t criteria (3:12> 1.96), then H0 rejected and H1
accepted, meaning that service quality variable significantly affects the intermediary’s dealer reputation.
Hypothesis 6: Customer trust and service quality affects the intermediary’s reputation. Based on Table 5 standard loading factor of +0.81 indicates that customer trust variable (X1) and service quality (X2) have a positive influence on purchase intention (Y). If the F-statistic value> F criteria, then the regression coefficient is significant. F value customer confidence variable (X1) and service quality (X2) are 226.39 and t criteria with the test done one side at the α 5% is worth 3.84 so that t value is greater than t criterion (226.39> 3.84), then H0 rejected and H1 accepted, it means that service quality variable significantly affects the intermediary’s dealer reputation.
Hypothesis 7: Customer trust and service quality affect the purchase intention’s reputation through an intermediary. Based on Table 5, the standard loading factor of +0.85 indicates that customer trust variable (X1) and service quality (X2) have a positive influence on purchase intention (Y) through the intermediary’s reputation (Z). If the F-statistic value > F criteria, then the regression coefficient is significant. Value F value in the variable customer confidence (X1) and quality of service (X2) are 226.39 and t criteria with the test done one side at the α 5% is worth 3.84 so that t value is greater than t criterion (226.39> 3.84), then H0 rejected and H1 accepted, meaning that service quality variable significantly affects the purchase intention’s through an intermediary dealer reputation.
Table 7: Coefficient of Determination (R2) CP
Variable Major Contributions
Description Total
Direct Indirect
CT 0,0814 0,1190 through SQ 0,2031
SQ 0,3249 0,1190 through CT 0,4439
The Effect of Simultaneous CT & SQ towards CP R2 0,6470
The Effect External Variable towards CP ζ2 0,3530
Coefficient of Determination 1
CP = 0.29*CT + 0.57*SQ, Errorvar.= 0.35 , R² = 0.65 (1)
(0.093) (0.10) (0.078) 3.12 5.62 4.55
Based on Table 7 there are variables that simultaneously influence customer trust and service quality to the intermediary image of (R2) 0.6470 rounded up by 0.65 or 65%. There are significant variables that are not included in the study amounted to 0.3530 or 35%. A positive image of an intermediary has already been able to develop by the company by becoming a special, famous, glorious, and happy dealer, as well as a dealer known by public. An investigation has been carried out on customer trust and service quality that the company provides.
Table 8: Coefficient of Determination (R2) KP
Variable Major Contributions
Description Total
Direct Indirect
CT 0,0361 0,0438 through SQ
0,0559 through CP 0,1357
SQ 0,1024 0,0438 through CT
0,1048 through CP 0,2510
CP 0,1764 0,0559 through CT
0,1048 through SQ 0,3371
The Effect of Simultaneous CT & SQ towards CP R2 0,7238
The Effect External Variable towards CP ζ2 0,2762
Coefficient of Determination 2
KP = 0.42*CP + 0.19*CT + 0.32*SQ, Errorvar.= 0.28 , R² = 0.72 (2) (0.11) (0.078) (0.10) (0.048)
3.75 2.45 3.12 5.87
Based on Table 8, variables simultaneously influence customer trust and service quality to purchase intention through an intermediary image of (R2) 0.7238 rounded up by 0.72 or 73%. There are significant variables that are not included in the study amounted to 0.2762 or 27%. Customer purchase intention by taking advantage of after-sales service can develop a positive image of the intermediary. It is derived from the company's ability to enhance customer confidence and quality services.
Discussion
Customer confidence and service quality provided by Prima Honda Dealer is very good so it is influential for consumers in doing purchase intention by repurchasing various services offered. The test results are descriptive; customer trust and service quality provided by Prima Honda Dealer are excellent. This is proven by the mean of 4:29 for customer trust and 4:35 for service quality. It is also proven by the mean of 4.25 for image intermediaries and 4:38 for purchase intention. This result proves that the reliability and quality of services which include competence, integrity, credibility, responsiveness, assurance, and empathy are well received by customers. Customer trust and service quality is the foundation of any business: building trust and the quality of care in long-term relationships with our customers is an important factor for creating customer loyalty. Trust and service quality are not just to be recognized by other parties / business partners but must be built from scratch and can be proven.
Until now Prima Honda Dealer has proven that the company can maintain the standard periodic maintenance, reliable technicians, and speed in providing services to consumers. This is in line with the research of Sirdesmukh, Sing & Sabol (2002), Griffin (2005), Storbacka (2001), Jones et al (2009 which mentioned that the expectation of consumers was that the service providers could be trusted or relied upon to fulfill their pledge. Trustworthy company is if the company can demonstrate that it is trustworthy to consumers. Trust dimensions are described as dimensions in a business relationship that determine who feel them, and the integrity of the promise offered. This is also in line with the findings of Naeem et al (2009), Hartono (2013), Haery (2014,) that there is a significant relationship between
service quality and customer satisfaction and measured as well by three indicators, namely word of mouth, repurchase intention, price insensitive.
Quality dimension and significant positive effect on the mental imagery are associated with customer and customer perceived value. Customer confidence and service quality provided by Prima Honda Dealer are very good; therefore, contribute to the image of Prima Honda Dealer as an intermediary. This is in keeping with the opinion of Zeithhaml & Bitner (2003) which stated that customers had an attitude of trust to producers and would provide benefits for manufacturers, one of which, i.e. purchases increased. A study conducted by Reichheld and Sasser (2001) showed that customers who had confidence tended to spend more than they spent in the previous year. Customer confidence in performing periodic maintenance (service) car in Prima Honda Dealer is still maintained.
This is because at Prima Honda Dealer, regular maintenance (service) is in accordance with prescribed standards, the ability of its top engineers, professional service advisor (SA), corrective settlement which is in accordance with the specified time, and reliable equipment.
Gilbert (2004) stated that service quality encouraged customers to commit to the products and services of a company--this had an impact on improving the market share of a product; service quality was crucial in retaining customers in a long time (Bronn & Vrioni, 2001). Hassan (2013), Hsu (2012), and Ker (2012) found evidence that the relationship between social responsibility and corporate performance generated reputation. Good corporate reputation is a resource that is scarce and valuable to the company. Good corporate reputation can be a source of competitive advantage and have a positive effect on customer satisfaction, corporate reputation, and brand equity. This is also in line with the findings of Patricia et al (2014); Prasit & Nik, 2014 which stated that there was a positive image to the stakeholders; the organization had developed a program identity and found attitude variable between perceived value and corporate image. Service quality at Prima Honda Dealer is still well preserved; this is proven by efforts to continuously improve service quality. Few which are being developed at this time are the reminder service (reminding customers to perform periodic maintenance), and the appointment, which is making a promise (booking service) that can be done by customers who will perform regular maintenance service at Prima Honda Dealer, reliable in the technician ability, quick in providing services, responsive in helping consumers, guaranteed in the transaction, convenient in services, and special in services.
Conclusions, Suggestions, and Recommendations
Customer trust and service quality at Prima Honda Dealer are well so that consumers do the service again (repurchase). This is due to the competence, integrity, credibility, responsiveness, assurance, and empathy which are very well received by customers. There is the influence of customer trust and service quality to purchase intention. This is due to the trust gained by customers in periodic service which is in accordance to the standards, reliable engineers, professional service advisors, accurate information from the service advisor, on time repair completion, trustworthy equipment usage, and exact cost estimation from Prima Honda Dealer in accordance with the promise. There is the influence of customer trust and service quality to the purchase intention through an intermediary image that has been developed by the company. Referring to research stated by Patricia et al (2014); Prasit & Nik, 2014 that there was a positive image to the stakeholders; the organization had developed a program identity and found attitude variable between perceived value and corporate image. The quality of customer service received includes fast in providing services, responsive in helping consumers, committed in responding to requests and complaints from consumers, assured transaction, convenient services, and preferential treatment to all consumers in accordance with the expectation. The service is able to build a positive reputation to become a special, famous, proud, and happy dealer, as well as dealer which has a reputation in society.
Considering service quality is still a shortfall in the level of responsiveness and empathy, providing more service in response to demand and commitment to customer complaints and treating all
customers in a special way should be part of the service. Koshki et al (2014) stated that the mental picture of the corporate has a positive effect on perceived value and customer satisfaction, customer perceived value has a positive effect on customer satisfaction, and customer satisfaction has a positive impact on behavioral intentions. It should be pursued constantly by Prima Honda Dealer in order to maintain customer confidence and dealer’s image; customer intention can be developed in the future as well. However, further research can be conducted by comparing the inter-dealer services of automotive companies with a broader sampling in order to generalize more comprehensive findings of the service of various automotive companies. Customer value variable and customer equity can be alternatives for advanced research.
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