(1)Kresna Ajidharma Sentosa IMPACTS OF CUSTOMER EXPERIENCE TOWARDS BRAND REPUTATION IN FAST CASUAL DINING RESTAURANTS

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Kresna Ajidharma Sentosa

IMPACTS OF CUSTOMER EXPERIENCE TOWARDS

BRAND REPUTATION IN FAST CASUAL DINING RESTAURANTS.

Case Study of Middle-Eastern Restaurants in South Tangerang City

By

11603004

BACHELOR’S DEGREE in

BUSINESS ADMINISTRATION - HOTEL AND TOURISM MANAGEMENT CONCENTRATION

FACULTY OF BUSINESS AND COMMUNICATION

SWISS GERMAN UNIVERSITY The Prominence Tower

Jalan Jalur Sutera Barat No. 15, Alam Sutera Tangerang, Banten 15143 – Indonesia

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STATEMENT BY THE AUTHOR

I hereby declare that this submission is my own work and to the best of my knowledge, it contains no material previously published or written by another person, nor material which to a substantial extent has been accepted for the award of any other degree or diploma at any educational institution, except where due acknowledgement is made in the thesis.

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Student Date

Approved by:

Anthon S. Tondo, SE., MBA.

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Thesis Advisor Date

Dr. Nila Krisnawati Hidayat, SE., MM.

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Dean Date

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ABSTRACT

IMPACTS OF CUSTOMER EXPERIENCE TOWARDS BRAND REPUTATION IN FAST CASUAL DINING RESTAURANTS, Case Study of Middle –Eastern Restaurants

in South Tangerang City

By

Kresna Ajidharma Sentosa Anthon S. Tondo, SE., MBA.

SWISS GERMAN UNIVERSITY

Brand Name and reputation is a big concern for every business enterprise in this modern days. Especially with the rise of Millennials population in the world that generally tend to follow more trendy lawful lifestyle in their life and in Indonesia especially, which is one of the biggest Muslim Countries in the world (87% Moslem Population). This fact, alongside with the rise of investment and number of Middle-eastern tourist influx to Indonesia make Indonesia in the future to be a hotspot for Halal Tourism that of course, In order to please their array of customers need to maintain good Customer Experience and Good Brand Reputation.

This research aims to find out how much Customer Experience will affect Brand Reputation in Middle-Eastern Fast Casual Dining Restaurants in Indonesia, especially in South Tangerang City area by using causal analysis method. The sample comprises of 140 respondents that already filled the online questionnaires for data collection. SPSS program was used for both pre-test and post-test. This research discovers positive relationship between Customer Experience and Brand Reputation in Middle-Eastern Fast Casual Dining Restaurants in South Tangerang City based on the data collected and analyzed using Online Questionnaire & SPSS.

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Keywords: Customer Experience, Brand Reputation, Price to Quality Value, F&B Industry, USP Originality, Middle-Eastern Restaurants.

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DEDICATION

I dedicate this research for the future of the hospitality industry, for Swiss German University, and for my beloved Parents and friends that always support me in the last 4 years no matter how hard the conditions are. In addition, I also hope that this research can be used to help improving future research regarding similar topics.

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ACKNOWLEDGEMENTS

With enormous appreciation, I would love to express my deepest acknowledgements to the following who have assisted and embrace me to finish this Thesis Work:

1) To the Almighty God for His blessings, grace, and strength to get through even at the toughest times.

2) To both my beloved parents for the unwavering moral, emotional, and financial support that has shaped me into the person I am today.

3) To my genial advisor Sir Anthon S. Tondo, SE., MBA. for the share of expertise, advice, encouragement and time despite your busy agenda to successfully deal with difficulties.

4) To my English thesis grammar advisor Sir James Edward Hunt, SE., MA. For the share of time to check and revise the grammar quality of my Thesis despite your busy agenda and other difficulties.

5) To both of my Brothers Wisnu Ajidharma Sentosa and Yudhistira Ajidharma Sentosa for all the assistance, patience and time.

6) To my great friends here in SGU, Jessica Collins, Yosafat Arsetya Dwiputra, Alexander Patrick Pantoro, Gissella Nadya, Alicia Anggana, Aurellia Widjaja, Nathaniel Engelbert Chandra and my dormitory boys squad from Senior High School for spreading your crazy and fun vibes and motivating me even during struggle to complete this Thesis Work. Thanks All and See you on top!

7) To all personnel of HTM Batch 2016 and all SGU lecturers for the experience this past four years of study that has taught me valuable life lessons.

8) To everyone else who directly or indirectly lent a hand throughout the whole process.

This goal would not have been achieved without all your participation! Once more. Thank you Guys and God Bless!

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TABLE OF CONTENTS

STATEMENT BY AUTHOR ……….. 2

ABSTRACT ……….. 3

DEDICATION ………..……… 6

ACKNOWLEDGEMENT ………...………… 7

TABLE OF CONTENTS ………. 8

LIST OF FIGURES ………...………. 12

LIST OF TABLES ……….………. 13

CHAPTER I – INTRODUCTION ………. 14

1.1 Background ……….. 14

1.1.1 CustomerExperience……….……….. 14

1.1.2 BrandReputation …………...……….. 17

1.2 Research Problems ……….……… 18

1.3 Research Questions ……….. 18

1.4 Research Objectives ………..…….. 19

1.5 Scope and Limitations ……….……… 19

1.6 Significance of Study ………...……… 19

CHAPTER II – LITERATURE REVIEW ………..……. 20

2.1 Current circumstances regarding Customer Experience in Middle Eastern Restaurants in Indonesia ……….………… 20

2.1.1 Customer experience in overall general middle-eastern Fast Casual Dining Restaurants in Indonesia ……….…… 20

2.1.2 Customer experience in middle-eastern casual dining places in South Tangerang, Banten ……….……….……..……….……. 24

2.2 Framework of Thinking ………..……. 26

2.3 Definition ……….….. 27

2.3.1 Brand and Customer Experience Relation ……….……….……..…….27

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2.3.2 Brand and Customer Experience Relation in Fast Casual Dining

Restaurants ……….……….…..…….. 28

2.3.3 Price to Quality Value ……….……… 29

2.3.4 Service Quality ………...…………...……….…………...………..……. 29

2.3.5 Restaurants Sanitary ……….………...…… 29

2.3.6 Restaurants Location ………...………..……… 30

2.3.7 Restaurants Atmosphere ……….………….…… 30

2.3.8 Quality Consistency ………...……….. 30

2.3.9 Ability to deliver unique and personalized service ………....……….. 31

2.3.10 Promotional Marketing Effect ………..………….…….……. 31

2.3.11 Unique Selling Point (USP) Originality ………..……..…….. 32

2.4 Table of Previous Studies ……….………….. 32

2.5 Study Differences ………..………….. 40

2.6 Hypothesis ………...……… 42

CHAPTER III – RESEARCH METHODOLOGY ……….……… 44

3.1 Type of Study ……….………. 44

3.2 Unit Analysis or Observation ………..……….. 44

3.3 Sampling Design ………...………….. 44

3.3.1 Population and Sample Target ………...…………...……… 44

3.3.2 Sampling Method ………..………...……… 44

3.3.3 Sample Size ………..………..……….. 45

3.4 Time Frame of Study ………. 45

3.5 Data Source and Collection ………..………. 46

3.5.1 Type of Data ………..……….……….. 46

3.5.2 Data Collection Methods ………..…..……….. 47

3.5.3 Questionnaire Structure ………... 47

3.6 Research Model ……….. 50

3.7 Variable Operationalization ………. 51

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3.8 Data Processing Procedure ……… 55

3.8.1 Pre-Test ………..………….……….. 55

3.8.2 Post-Test ………..……....……...…..………...………….. 55

3.8.3 Validity Test ………..……….……….……….. 55

3.8.4 Reliability Test ……….………..…………...……… 56

3.8.5 Data Analysis Test ………..………..……….……..……….. 56

3.9 Classical Assumption Test ………...……….. 57

3.9.1 Normality Test ………....…………...……… 57

3.9.2 Heterocedascity Test …….………..……….……. 58

3.9.3 Multicollinearity Test ………...……….……..……….. 58

3.9.4 Multiple Linier Regression Analysis ………...….……...………….. 58

3.9.5 Hypothesis Test ………..……….………. 58

3.9.6 Type of Data Analysis ………..……...…………. 59

CHAPTER IV – DATA ANALYSIS ………. 60

4.1 Brief Description and Profiles of Middle-Eastern Restaurants in South Tangerang City ……….………. 60

4.2 Profile of Respondents ……….……….. 60

4.2.1 Respondents Gender ………….…...……….…...……….. 61

4.2.2 Respondents Age ………..………. 61

4.2.3 Respondents Occupation …………..…………...……….. 62

4.2.4 Respondents Domicile Area ………...……...………..………….. 63

4.2.5 Have you ever dined-in in a Fast Casual Dining Middle-Eastern Restaurant in South Tangerang City before? ... 64

4.2.6 If yes, How often in one month?...………….…….…..……….………. 65

4.3 Pre Test and Post-Test Data Analysis………..…….. 66

4.3.1 Pre-Test ………...………..…. 66

4.3.1.1 Validity Test of Customer Experience and Brand Reputation…….….…. 66

4.3.1.2 Reliability Test of Customer Experience and Brand Reputation ……..…. 68

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4.3.2 Post-Test ………...……….. 68

4.3.2.1 Validity Test of Customer Experience and Brand Reputation ...…..……. 69

4.3.2.2 Reliability Test of Customer Experience and Brand Reputation ...……… 70

4.3.2.3 Descriptive Statistics Analysis ……….. 71

4.3.2.4 Classical Assumption Test ……… 73

4.3.2.4.1 Normality Test ……….……….………….. 73

4.3.2.4.2 Heterocedascity Test ………..………. 75

4.3.2.4.3 Multicollinearity Test ………...…………...……… 76

4.3.2.4.4 Regression Analysis …………..……….………. 77

4.3.2.4.5 F-Test (Hypothesis Test) ………...…………..……… 79

4.3.2.4.6 T- Test (Hypothesis Test) ………..…………..……… 80

4.3.2.5 Model Summary ………..………….………..……… 82

4.3.2.6 Significance per IV towards DV ………..…..……… 82

4.4 Discussion ………...………… 84

4.4.1 Hypothesis Test Result ……...………...……….. 84

4.4.2 Hypothesis Test Discussion ………..………...……… 84

CHAPTER V – CONCLUSION AND RECOMMENDATION ……….…… 86

5.1 Conclusion ……….………. 86

5.2 Managerial Implications ………..…. 87

5.3 Recommendation for Future Study ……….………. 88

GLOSSARY ………...…………. 90

ABBREVIATION ………..………. 93

REFERENCES ………...……….94

APPENDICES……….……….. 101

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LIST OF FIGURES

Figure 2.1. Framework of Thinking ……….…. 25

Figure 3.1. Questionnaire Structure ……….…………. 47

Figure 3.2. Thesis Research Model ………... 51

Figure 3.3. Data Analysis Process ………... 57

Figure 4.1. Gender of Respondents ………...……… 61

Figure 4.2. Age of Respondents ………...…………. 61

Figure 4.3. Occupation of Respondents ……… 62

Figure 4.4. Respondents Domicile Area ………...…. 63

Figure 4.5. Have you ever dined-in in a Fast Casual Dining Middle-Eastern Restaurant in South Tangerang City before? ………...………. 64

Figure 4.6. If yes, How often in one month? ……….…… 65

Figure 4.7. Pre-Test Reliability Statistics Customer Experience ……….. 68

Figure 4.8. Pre-Test Reliability Statistics Brand Reputation ………. 68

Figure 4.9. Post-Test Reliability Statistics Customer Experience ……….…… 70

Figure 4.10. Post-Test Reliability Statistics Brand Reputation ………. 71

Figure 4.11. Normality Test Result (Histogram) ………..………. 73

Figure 4.12. Normality Test Result (P-plot) ……….. 74

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LIST OF TABLES

Table 1.1. Indonesia Foodservice value sales, In US$ millions, period of 2015-2022 .... 15

Table 1.2. Customer preferences in Indonesian Restaurant Subsector by Distribution Type, 2014 ………...……….. 15

Table 1.3. Number of food outlet, sales, growth percentage & annual forecast in Indonesia, 2015-2020 ………..…….. 16

Table 2.1. Brand and Customer Experience Study construct sample (Norway) …...…. 27

Table 3.1. Time Frame of Study ……… 45

Table 3.2. Description of Likert Scale ………...… 47

Table 3.3. List of Variable Operationalization ………..………… 52

Table 3.4. Cronbach Alpha Rule of Thumb ……….……. 56

Table 4.1. Pre-Test Pearson’s Correlation Table ……….….. 66

Table 4.2. Post-Test Pearson’s Correlation Table ……….… 69

Table 4.3. Descriptive Statistics Table ……….. 71

Table 4.4. Normality Test Result (Kolomogorov - Smirnov) ………..……. 74

Table 4.5. Heterocedascity Test Result (Glejser Method) ……….………… 75

Table 4.6. Multicollinearity Test Result Table ……….. 76

Table 4.7. Multiple Linier Regression Test Equation ……… 77

Table 4.8. F-Test Result Table ………..………… 79

Table 4.9.T-Test Result Table ………...……… 80

Table 4.10. Regression Test Model Summary ……….. 82

Table 4.11. Significance per IV Indicators towards the DV ……….………. 82