THE IMPACT OF 7 PS TOWARDS CUSTOMER SATISFACTION ON CUSTOMER LOYALTY
AN EMPIRICAL STUDY ON LOR INTERNATIONAL SENTUL BOGOR, WEST JAVA – INDONESIA
By
MEIRENI DWI HENDRA SAPUTRI (2-3113-025)
MASTER DEGREE in
BUSINESS ADMINISTRATION
FACULTY OF BUSINESS ADMINISTRATION AND HUMANITIES
SWISS GERMAN UNIVERSITY BSD Edu Town
Tangerang 15339 Island of Java, Indonesia
March 2016
STATEMENT BY THE AUTHOR
Hereby l declare that this master thesis submitted is a work of my own and to the best of my knowledge, it contains no material previously published or written by another person, no material which substantial extent has been accepted for the obtain of other degree or diploma in other education institution, except the acknowledgement is made in the thesis
Meireni Dwi Hendra Saputri.ST
Student Date
Approved by :
Dr.Dra.Ita Mariza, MM
Thesis Advisor Date
Parhimpunan Simatupang. SE, MBA
Thesis Co-Advisor Date
Prof. Eric Jos Nasution, MBA, M.A, Ph.D
Dean Date
ABSTRACT
THE IMPACT OF 7 PS TOWARDS CUSTOMER SATISFACTION ON CUSTOMER LOYALTY
AN EMPIRICAL STUDI ON LOR INTERNATIONAL SENTUL BOGOR, WEST JAVA – INDONESIA
By
Meireni Saputri (Student) Dr. Dra. Ita Mariza, MM (Advisor)
Parhimpunan Simatupang, SE.MBA (Co-Advisor)
SWISS GERMAN UNIVERSITY
This research has to study and analyze the impact of marking mix in service enviroment (7 Ps) and how it affects towards customers satisfaction, and customer satisfaction on customer loyalty. Research studies located at Lor International Hotel in Sentul West Java, focus on visitor comming to stay in hotel, field survey will be used by using questionnaire to collect data. The questionnaire will be designed in two languange (Bahasa, English) to meet all tourists from different country.
The study establish from all the marketing mix element impact to customer satisfaction.
How the product, price, place, promotion, process, people, physical evidence have an impact and correlation towards the customer satisfaction, and how the customer satisfaction create magnitude value on customer loyalty. Strong relationship in each will be visible on the result of the analysis, and detail will be discussed in chapter analyses in this thesis.
Keywords: hotel, 7ps marketing mix, customer satisfactions, customer loyalty,
© Copyright 2016 By Meireni Saputri
All Right Reserved
DEDICATION
I dedicate this thesis to my parents, beloved Father and Mother, to my special sisters Sicilia, Putri and someone special, Galih who always understand me every hard condition and give great support and encouragement. I also dedicate this thesis to my colleagues, the Lor International Sentul Management, special to Mr. Tinton Suprapto that always giving me support and best advice to complete my thesis.
ACKNOWLEDGEMENT
Firstly, l would like to thanks God for big blessing, so that l could have finished this thesis according to the schedule. I also would like to say thank you to:
Dr.Dra.Ita Mariza, MM and Parhimpunan Simatupang.SE.MBA my thesis advisor and co- advisor. Thank you very much for all guidance, support and attention every detail that help me to do the oveall process the planning of this thesis, actual study and the writing stage of this thesis.
Form my friends batch 23, special to Sonia, Giland, Samuel, Hendy, Imran, thank you for the support, and great discussion during I finish my thesis.
Also for my work best team at Lippo Karawaci Mr. Aras, Mr. Azwar, Ester Parapat, Maria Erna Natalia, Dwiani, Dimas and special to Mr. Jowi Mance who always support me for finishing my thesis.
I would like to say thank you for all support team, and advice in Lor International Sentul, Mr.
Tinton Suprapto as owner of Lor International Sentul, Mr. Joko Susilo, Mr.Endang as marketing director, Mr. Sep Halim.
Finally I would like to express my sincere gratitude to my familly and Galih Tagar Rudito, for all support, advice and understanding me during I finish my thesis.
TABLE OF CONTENTS
STATEMENT BY THE AUTHOR ... 2
ABSTRACT ... 3
DEDICATION ... 5
ACKNOWLEDGEMENT ... 6
CHAPTER I INTRODUCTION... 11
1.1 Background ... 12
1.2 Lor International Hotel ... 14
1.3 Problem Identification... 16
1.4 Research Question... 16
1.5 Research Purpose ... 17
1.6 Significant Research ... 17
1.7 Scope and Limitation Research ... 18
1.8 Chapter Sumary... 18
CHAPTER II LITERATURE REVIEW ... 19
2.1 Marketing ... 20
2.2 Marketing Mix ... 21
2.2.1 Definition ... 21
2.2.2 Marketing mix in the Tourism Industry ... 22
2.2.3 The 7 Ps Marketing Mix ... 22
2.3 Customer Loyalty... 29
2.3.1 Measure Customer Loyalty ... 29
2.4 Customer Satisfaction ... 30
2.5 Previous Research ... 31
2.6 Chapter summary ... 38
CHAPTER III METODHOLOGY ... 39
3.1 Research Framework ... 39
3.2 Research design ... 40
3.2.1 The research study purpose ... 40
3.2.2 Research strategies ... 41
3.2.3 Unit of Analysis ... 41
3.2.4 Time Horizon ... 42
3.3 Research Model ... 42
3.4 Research Question and Hypothesis ... 43
3.5 Type and Source data ... 47
3.6 Data Collection Method ... 47
3.7 Questionnaire design and scale ... 48
3.8 Survei sampling method ... 48
3.9 Data Analysis ... 48
3.9.1 Validity and reliability test ... 49
3.9.2 Coefficient of correlation ... 49
3.10 Structural equation Model (SEM) ... 50
3.11 Chapter Sumary ... 54
CHAPTER IV ANALYSIS AND DISCUSSION ... 55
4.1 Respondent Characteristic ... 55
4.2 Validity and Reliability Test ... 56
4.3 Respondent Demographic Information ... 58
4.4 Customer Satisfaction & Loyalty Level ... 61
4.4.1 Customer satisfaction ... 61
4.4.2 Customer Loyalty... 62
4.5 Model Measurement ... 62
4.6 SEM analysis ... 64
4.6.1 Path diagram ... 64
4.6.2 Path diagram Interpretation... 65
4.7 Research Analysis ... 72
4.7.1 Research Question No.1... 73
4.7.2 Research Question No.2... 73
4.7.3 Research Question No.3... 74
4.7.4 Research Question No.4... 75
4.7.5 Research question No. 5 ... 76
4.7.6 Research Question No.6... 77
4.7.7 Research Question No.7... 77
4.7.8 Research Question No.8... 78
4.8 Chapter sumary ... 79
CHAPTER V CONCLUSION AND RECOMENDATION... 80
5.1 Conclusion ... 80
5.2 Recomendation ... 81
5.2.1 Recomendation for company ... 81
5.2.2 Further Research Recomendation ... 81
5.3 Chapter Summary ... 81
APENDIX ... 90
Apendix 1 – Pearson Table ... 90
Apendix 2 – Questionnaire ... 91
Apendix 3 – Pre Test Questionnaire Result ... 96
Ampendix4- Post Test questionnaire result ... 96
CURICULUM VITAE ... 99
