Full Terms & Conditions of access and use can be found at
https://www.tandfonline.com/action/journalInformation?journalCode=wfbr20
Journal of Foodservice Business Research
ISSN: 1537-8020 (Print) 1537-8039 (Online) Journal homepage: https://www.tandfonline.com/loi/wfbr20
Measuring customer satisfaction of a café and coffee shop colony at a traditional market
Usep Suhud, Mamoon Allan, Setyo Ferry Wibowo, Elke Sabrina & Greg Willson
To cite this article: Usep Suhud, Mamoon Allan, Setyo Ferry Wibowo, Elke Sabrina &
Greg Willson (2020) Measuring customer satisfaction of a café and coffee shop colony at a traditional market, Journal of Foodservice Business Research, 23:1, 78-94, DOI:
10.1080/15378020.2019.1686897
To link to this article: https://doi.org/10.1080/15378020.2019.1686897
Published online: 04 Nov 2019.
Submit your article to this journal
Article views: 79
View related articles
View Crossmark data
Measuring customer satisfaction of a café and co ff ee shop colony at a traditional market
Usep Suhuda, Mamoon Allanb, Setyo Ferry Wibowoa, Elke Sabrinaaand Greg Willsonc
aFaculty of Economics, Universitas Negeri Jakarta, Jakarta, Indonesia;bFaculty of Archeology and Tourism, The University of Jordan, Amman, Jordan;cSchool of Business and Law, Edith Cowan University, Perth, Australia
ABSTRACT
Consumer behavior within a traditional market has received a lack of scholarly attention. This study aims to examine the impact of product quality, service quality, and price on customer satisfaction within a traditional market in Indonesia. The participants were visitors of a café and coffee shop colony at a traditional market, in Jakarta. Data were collected at Pasar Santa, a traditional market in South Jakarta that has been modified into a new concept for attracting younger patrons. Data were analyzed using exploratory and confirmatory factor analyses, and structural equation model. As a result, product quality, service quality, and price insignificantly affected customer satisfaction. In addition, this current study offers three modified models to explore the role of each predictor variable. This study helps to enhance our knowledge toward the consumer behavior engaging in the traditional markets.
KEYWORDS Customer satisfaction;
service quality; product quality; perceived price;
traditional market
Introduction
Generally speaking, a traditional market could be basically defined as a physical place where buyers and sellers meet in order to create exchanges (Kotler, Wong, Saunders, & Armstrong, 2005). It is acknowledged that traditional markets are very significant tourist attractions for both domestic and international tourists (Wongleedee,2015). It is apparent that most business practitioners had never realized that the services improved in traditional markets could assist to sell more products in such markets (Wang, Kim, Ko, & Liu,2016).
However, traditional markets in most city areas in Indonesia, open daily. Their existence was threatened by modern markets that invaded dwelling areas as a consequence of market liberalization (Suryadarma, Poesoro, Akhmadi, Rosfadhila, & Suryahadi,2010). The number of traditional markets in Jakarta is 150 sites infive regions and all of them are managed by the Provincial Government of Jakarta (Satu Data Indonesia,2012).
In general, these traditional markets are a permanent two-storey building or higher.
Unfortunately, for several years, most of the higherfloors of the market buildings have been unable to attract visitors. As a result, many kiosks were closed by the tenants (Santosa,2016).
In 2014, an innovation to develop a colony of eateries was implemented at Pasar Santa, one of the traditional markets in South Jakarta. In English,pasarmeans market. In total, this market
CONTACTMamoon Allan [email protected] Faculty of Archeology and Tourism, The University of Jordan, Amman, Jordan
Color versions of one or more of thefigures in the article can be found online atwww.tandfonline.com/wfbr.
https://doi.org/10.1080/15378020.2019.1686897
© 2019 Taylor & Francis
has 1,150 units of kiosks. On onefloor, the kiosks are leased to a group of young people and divided into a colony of cafés, boutiques, and coffee shops with an innovative concept (Sutanudjaja,2015) including vintage and industrial designs. Further, by optimizing social media platforms, these new tenants have promoted their place and within thefirst 3 months, the colony attracted thousands of visitors across Jakarta (Irawan, 2016). The number of visitors increased when mainstream media also published and broadcasted the development occurring at Pasar Santa.
Visitor behavior of cafés, restaurants, shopping centers, and other modern markets has been widely researched (Rahman, Wong, & Yu, 2016; Suhud & Wibowo, 2016).
Accordingly, there is a paucity of studies relating to consumer behavior within a traditional market, particularly of a café and coffee shop colony at a traditional market.
Furthermore, prior studies included product quality, service quality, and price to predict customer satisfaction. These three predictor variables are considered as‘input’or cognitive that could influence‘process’or affective (Schiffman & Wisenblit,2015). In this study, the authors build three other modified models by modifying the same variables to understand the role of each variable in influencing other variables. In these attempts, price, product quality, and service quality were changed to perceived price, perceived product quality, and perceived service quality, respectively (Bei & Chiao, 2001). When a variable was treated as an input, the others were as processes.
Therefore, this study aims to examine the impact of product quality, service quality, and price on customer satisfaction relating to a café and coffee shop colony at Pasar Santa, Jakarta. Understanding customer satisfaction is important for retailers as it will lead to repurchase intention and customer loyalty (Alegre & Garau, 2010; Ivanauskienė &
Volungėnaitė,2014; Kheng, Mahamad, & Ramayah, 2010; Saidani & Arifin,2012; Suhud
& Wibowo,2016). The current study may be theoretically valued by raising the awareness of the characteristics of traditional market customers. This could broaden the scope of service, hospitality and tourism studies.
Literature review
Product quality and customer satisfaction
It could be argued that customer satisfaction on product quality is one of the most crucial elements in supporting and enhancing the competitive position of an organization, particularly in the business-to-business market (Cantarello, Filippini, & Nosella, 2012).
Accordingly, Hallencreutz and Parmler (2019, p. 1) postulate that “A high level of customer satisfaction is argued to lead to stronger company image, protection of current market share, increased customer loyalty, decreased customer complaints and strength- enedfinancial performance”. Dahlgaard-Park (2012) states thatfirms typically employ the measurement of customer satisfaction as the criteria to adjust their service behaviors.
Whereas, So, King, Sparks, and Wang (2016) reveal that offering products or services that either enhance customer satisfaction or prevent dissatisfaction is critical for retaining or attracting consumers.
Each product has different characteristics. Therefore, product quality dimensions of a certain type of product would be different from another (Zeithaml,1988). For example, dimensions of wine quality are influenced by intrinsic (age, harvest, alcohol content,
varieties, tastes, aroma, and color) and extrinsic (reputation, region, appellation d’origin, advertising and propaganda, distribution channels, bottling and labeling, brand, and price) factors (Jover, Montes, & Fuentes, 2004). Food quality dimensions according to Shaharudin, Mansor, and Elias (2011), included freshness, presentation, taste, and inno- vative food.
Prior studies evidenced that food quality is an important factor in influencing customer satisfaction within hospitality settings (Adi & Yoestini, 2012; Liu, Lee, & Hung, 2017;
Runtunuwu, Oroh, & Taroreh, 2014; Ryu & Han,2010). In general, product quality can influence reputation, intention to switch, repurchase intention, service quality, loyalty, and customer satisfaction (Peng, Scott, Prybutok, & Sidorova, 2014; Saidani & Arifin, 2012;
Wang, Lo, & Hui,2003; Yuen & Chan, 2010). In this study, product quality is linked to customer satisfaction.
Elsewhere, Ryu and Han (2010) studied the impact of food quality, service quality, and quality of physical environment on customer satisfaction and its implication on purchase intention. Using a regression analysis, they found that all the path testing significantly affected customer satisfaction.
Another study was conducted by Saidani and Arifin (2012). They tested Indonesians’
intention to repurchase at a modern market by employing product quality, service quality, and customer satisfaction as predictor variables. There were no dimensions of product quality employed. They found that product quality and service quality significantly affected customer satisfaction as well as repurchase intention. Further, they found a significant relationship between customer satisfaction and repurchase intention. Allan (2016) explores the local food consumption motivations and their relationship with intentional loyalty for international tourists in the context of Jordan. He further found that the cultural experience is the main motivation for tourists to experience local food and it revealed that the excitement motivation was the high significant predictor of the behavioral intention (loyalty). In a further study in Bandung, Indonesia, Djatmiko, Saragih, and Purbaningrum (2015) investigated satisfaction of a brand of motorcycle customers. They employed product quality, service quality, and price as predictor vari- ables. They found that only product quality and service quality had a significant impact on satisfaction. Therefore, thefirst hypothesis within the current study is:
H1–Product quality will have a significant impact on customer satisfaction
Service quality and customer satisfaction
Overall, market is changing rapidly, and this is now the time of a prospering globalized service industry that stresses the depth and extent of service as well as service quality (Chien & Chi,2019). However, Service quality is connected to various customer outcomes:
profits, customer satisfaction, attitudinal loyalty, and purchase intentions (Miranda, Tavares, & Queiró,2018; Zeithaml, Bitner, & Gremler, 2013).
Differential characteristics of retail business include perceptions of service quality, transaction channels, and size (Venkatesan, Mehta, & Bapna, 2006). However, although prior studies (Tey et al.,2014) demonstrated the precision of these dimensions, there are other scholars who modified them. For example, Tan, Oriade, and Fallon (2014)
mentioned in their study that the dimension of Chinese fast food restaurant service quality consisted of assurance and empathy, cleanliness, food quality, reliability, responsiveness, and tangible elements.
Service quality is reported to have a significant impact on product quality, intention to switch, reputation, customer satisfaction, and price (Peng et al., 2014; Saidani & Arifin, 2012; Venkatesan et al.,2006; Wang et al.,2003). In this study current, service quality is linked to customer satisfaction.
Further to the above discussion, Orel and Kara (2014) investigated the impact of customer loyalty of Turkish consumers toward a supermarket chain. They applied the dimensions of service quality including functionality, enjoyment, security/privacy, assurance, design, con- venience, and customization. These scholars found that service quality significantly influenced customer satisfaction and customer satisfaction significantly influenced loyalty. Prior studies, such as Djatmiko et al. (2015), Malik, Ghafoor, and Iqbal (2012), Mahmud and Jusoff(2013), Kaiman and Zani (2013), and Valaei and Baroto (2017) supported thisfinding. Therefore, the second hypothesis to be tested in the current study is:
H2–Service quality will have a significant impact on customer satisfaction
Price and customer satisfaction
There are many considerations regarding the influence of prices on customer satisfaction.
For example, scholars have considered how price fairness, price consciousness, and perceived price influence customer satisfaction. Wilson, Zeithaml, Bitner, and Gremler (2008) reveal that some determinants of customer satisfaction could encompass product and service quality, price, personal and situational factors.
In this study, the authors focus on price. Price can influence customer satisfaction, service quality, product quality, and trust (Adi & Yoestini, 2012; Haghighi, Dorosti, Rahnama, & Hoseinpour, 2012; Kusumanegara & Sutopo, 2012; Runtunuwu et al., 2014). In this current study, price is linked to customer satisfaction.
Haghighi et al. (2012) measured the loyalty of restaurant visitors. In their study, food quality, price, and service quality were linked to customer satisfaction. In addition, restaurant location and restaurant atmosphere were linked to customer trust while trust and satisfaction were linked to loyalty. They found that customer satisfaction was significantly affected by food quality, price, service quality, and restaurant atmosphere. Additionally, trust was significantly affected by food quality, price, and service quality. Lastly, loyalty was affected by customer satisfaction. In a similar study, Runtunuwu et al. (2014) assessed customer satisfaction of café visitors in Manado, Indonesia by applying the predictor variables of product quality, price, and service quality. Using a regression analysis, these researchers found that these three predictor variables significantly affected customer satisfaction. Other studies included price in their study and found price significantly impacted customer satisfaction. For example, Djatmiko et al. (2015), Malik et al. (2012), and Kaiman and Zani (2013). Therefore, the third hypothesis to be tested in this current study is:
H3–Price will have a significant impact on customer satisfaction
Theoretical framework
Based on the above discussion, this study has adopted the theoretical framework (Figure 1), consisting of three variables. Firstly, the impact of perceived quality on customer satisfaction. Secondly, the impact of product quality on customer satisfaction.
Lastly, the impact of price on customer satisfaction.
In addition to the above model, there are three modified competing models, modified from the main model. Bei and Chiao (2001) discuss that product quality will affect perceived product quality, service quality will affect perceived service quality, and price will affect perceived price. Further, perceived product quality, perceived price, and per- ceived service quality predicted customer satisfaction and loyalty. Based on thesefindings, the below models will be tested. In thefirst modified model (Figure 2), service quality is linked to perceived product quality and perceived price. Further, perceived product quality
Figure 1.The theoretical framework.
Figure 2.Thefirst modified model.
and perceived price are linked to customer satisfaction (Bei & Chiao,2001; Kassim, Igau, Harun, & Tahajuddin, 2014; Ngoc & Uyen,2015; Sumaedi, Bakti, & Metasar, 2011).
H4–Service quality will have a significant impact on perceived product quality
H5 – Service quality will have a significant impact on perceived price H11–Perceived product quality will have a significant impact on customer satisfaction H12–Perceived price will have a significant impact on customer satisfaction
In the second modified model (Figure 3), price is linked to perceived service quality and perceived product quality while perceived service quality and perceived product Figure 3.The second modified model.
Figure 4.The third modified model.
quality are linked to customer satisfaction (Bei & Chiao,2001; Kassim et al.,2014; Malik, 2012; Ngoc & Uyen,2015; Sumaedi et al.,2011; Tam,2004).
H6–Price will have a significant impact on perceived service quality H7–Price will have a significant impact on perceived product quality
H10 – Perceived service quality will have a significant impact on customer satisfaction In the third modified model (Figure 4), product quality is linked to perceived service quality and perceived price (Bei & Chiao, 2001), whereas perceived service quality and perceived price are linked to customer satisfaction (Bei & Chiao,2001; Malik,2012; Ngoc
& Uyen,2015; Sumaedi et al.,2011; Tam,2004).
H8 – Product quality will have a significant impact on perceived service quality H9 – Product quality will have a significant impact on perceived price
Methods Participants
Research participants of this current study were visitors of Pasar Santa, Jakarta. They were approached conveniently and asked whether they would be happy to fill out a self- administered questionnaire. In total, 200 participants completed the survey. As suggested by Hair Jr., Black, Babin, Anderson, and Tatham (2006), minimal of 200 participants are needed if factor loadings of each factor of 0.4 and greater. The sample consisted of 109 males (54.5%) and 91 females (45.5%). Predominantly, participants were students (155 participants; 77.5%), followed by employees (36 participants; 18%), self-employed (9 participants; 4.5%), and others. Regarding their marital status, 198 participants (99.9%) were unmarried.
Further, participants revealed how frequently they had visited Pasar Santa. Almost 60%
of the participants (119) have visited that place once and/or twice. About 30% of the participants (59) claimed that they have visited more than three times whereas 11% of them (22) have visited the market more thanfive times.
Instrument development
To develop the research instrument, the authors intentionally applied indicators that have been used by previous studies as they have been tested and validated. Indicators from Runtunuwu et al. (2014) were adopted and adapted to measure service quality and customer satisfaction. Indicators from Kusumanegara and Sutopo (2012) were to measure price.
Further, indicators from Adi and Yoestini (2012) were adapted and used to measure product quality. All these items are also used to measure perceived product quality, perceived price, and perceived service quality. A 5-point Likert scale was applied in this study.
Data analysis
Exploratory factor analysis (EFA) is applied to validate the instrument as well as the collected data. By calculating EFA, each variable will be inspected from dimensions if any and retain items with factor loadings of 0.4 and greater. Furthermore, for testing the hypotheses, confirmatory factor analysis and structural equation model are applied.
A fitness can be achieved with a probability score of 0.05 (Schermelleh-Engel, Moosbrugger, & Müller, 2003), CMIN/DF score of ≤2 (Tabachnick & Fidell, 2007), CFI score of≥0.97 (Hu & Bentler, 1995), and RMSEA score of≤0.05 (Hu & Bentler, 1999).
Research model and research hypotheses were tested by using SPSS 21.0 and AMOS 20.0. Descriptive statistical analysis, Cronbach’sα, AVE, confirmatory factor analysis, and structure model were analyzed by using SPSS 21.0 and AMOS 20.0.
Results and discussion Exploratory factor analysis
Exploratory factor analysis produced five factors, including service quality, with two dimensions retained: assurance (six items) with a Cronbach’s alpha score of 0.922 and tangible (six items) with a Cronbach’s alpha score of 0.792; product quality (nine items) with a Cronbach’s alpha score of 0.885; customer satisfaction (five items) with a Cronbach’s alpha score of 0.699, and price (two items) with a Cronbach’s alpha score of 0.612. Insignificant items were dropped during the analysis.Table 1provides the results of exploratory factor analysis.
Hypotheses testing
Thisfitted model had a probability score of 0.069, CMIN/DF score of 1.144, CFI score of 0.982, and RMSEA score of 0.027. The paths between product quality and customer satisfaction, service quality and customer satisfaction, and price and customer satisfaction have standardized regression weight scores of 0.462, 0.232, and 0.226, respectively. The structural equation model used in the study is presented inFigure 5.
Table 2 shows results summarizing the theoretical framework testing. As presented, the path of product quality on customer satisfaction had a C.R. score of 1.096 while of service quality on customer satisfaction had a C.R. score of 0.377. The last path had a C.R. score of 0.753. All these scores were considered insignificant. Therefore, all hypotheses are rejected.
Thefirst modified model: product quality as the independent variable
In thefirst modified model, product quality was treated as a dependent variable. Afitted model was obtained with a probability score of 0.050, CMIN/DF score of 1.161, CFI score of 0.989, and RMSEA score of 0.028. The structural equation model of thefirst modified model is presented inFigure 6.
As presented inTable 3, three paths in the third model have a C.R. score greater than 1.96 including the impact of product quality on service quality and price, and the impact of service quality on customer satisfaction. Another path, the impact of price on customer satisfaction has a C.R. score less than 1.96.
The second modified model: price as the independent variable
The second modified model (Figure 7) with price as the dependent variable obtained a fitness with a probability score of 0.067, CMIN/DF score of 1.281, CFI score of 0.979, and RMSEA score of 0.030.
Table 4 shows results of the hypotheses testing for the second modified model. Three paths, including H3, H4, and H7, had a C.R. score of 6.971, 7.751, and 2.265, respectively.
Another path, H9, had a C.R. score of 1.960. All paths are considered significant.
The third modified model: service quality as the independent variable
The third model (Figure 8) uses service quality as the dependent variable and achieves a fitness with a probability score of 0.050, CMIN/DF score of 1.161, CFI score of 0.980, and RMSEA score of 0.028.
Table 5shows that all paths tested had a C.R. score greater than 1.96. Thefirst path, the impact of service quality on perceived product quality, had a C.R. score of 8.566.
The second path, the impact of service quality on perceived price, had a C.R. score of 5.842. The third path, the impact of perceived product quality on customer satisfaction Table 1.Result of exploratory factor analysis.
Factor loadings
Cronbach’s alpha α= 0.922 Service quality: assurance
SQ16 The employees of Pasar Santa have knowledge in thefield of restaurant 0.829 SQ17 The employees of Pasar Santa pay good attention to visitors 0.787
SQ18 The employees of Pasar Santa prioritize visitors 0.772
SQ14 The employees of Pasar Santa take time to respond visitors’requests quickly 0.757
SQ15 The employees of Pasar Santa are friendly 0.756
SQ13 The employees of Pasar Santa are willing to help visitors’problem quickly 0.617
Product quality α= 0.885
PQ13 The food sold has a nice texture 0.704
PQ8 The food sold uses safe materials 0.678
PQ10 The food sold has a good taste 0.648
PQ11 The food sold has an attractive appearance 0.597
PQ14 The food sold have afinal good result 0.594
PQ12 The food sold unappetizing 0.578
PQ5 The food sold glut 0.577
PQ2 The food sold vary 0.565
PQ7 The food vendors provide cutlery 0.530
Service quality: tangible α= 0.792
SQ3 Pasar Santa has a clean toilet 0.657
SQ4 Pasar Santa has adequate number of parking bays 0.625
SQ7 Public facilities at Pasar Santa use a modern equipment 0.614
SQ2 Pasar Santa has a clean food court 0.612
SQ1 Pasar Santa has a nice layout 0.570
SQ6 Pasar Santa has adequate number of trash 0.508
Customer satisfaction α= 0.699
CS2 I am satisfied with the price of food di Pasar Santa 0.647
CS7 Easy for me to get food in Pasar Santa 0.618
CS6 I refer others to visit Pasar Santa 0.596
CS3 I am satisfied with the food that I consume 0.585
CS1 I am satisfied with the quality of food products at Pasar Santa 0.448
Price α= 0.612
P5 Prices are not too expensive 0.769
P4 Prices of the food are cheaper than the prices at other places 0.592
had a C.R. score of 4.541. Lastly, the impact of perceived price on customer satisfaction had a C.R. score of 2.451.
Discussion Product quality
Thefirst hypothesis predicts the impact of product quality on customer satisfaction. With a C.R. score of 1.096, product quality has an insignificant impact on customer satisfaction.
Thisfinding is insignificant with existing studies (Djatmiko et al.,2015; Ryu & Han,2010;
Saidani & Arifin,2012). Wang et al. (2016) suggest that for traditional market consumers, a high level of outcome quality is one of the most significant factors to make them satisfied and repurchase. Nevertheless, Kim and Shim (2017) indicate that Coffee shop customers put importance on the elements of price, discount systems, taste, and freshness, but more on courteous and kind services of coffee shop employees or relaxed and calming atmo- sphere of inner spaces.
In thefirst modified model, product quality was linked to perceived service quality and perceived price. This attempt produced C.R. scores of 8.628 and 6.545, respectively, that indicated significance. In the second and third modified models, product quality was Figure 5.Structural model of hypotheses testing.
Table 2.Results of summary of hypotheses testing.
C.R. P Results
H1 Product quality → Customer satisfaction 1.096 0.273 Insignificant H2 Service quality → Customer satisfaction 0.377 0.706 Insignificant H3 Price → Customer satisfaction 0.753 0.452 Insignificant
adapted as perceived product quality and it was linked to customer satisfaction. The path had C.R. scores of 1.960 and 4.541, respectively, that showed significances. Quality of the products offered at Pasar Santa did not help satisfying visitors. However, this quality worked well to influence perceptions of service and price.
Service quality
The second hypothesis predicts the impact of service quality on customer satisfaction.
With a C.R. score of 0.753, this hypothesis is rejected. This finding is insignificant with prior studies (Djatmiko et al., 2015; Kaiman & Zani, 2013; Kim & Shim, 2017; Orel &
Kara,2014).
In the first and second modified models, service quality was adapted as perceived service quality and it was linked to customer satisfaction. These two paths had C.
R. scores of 4.822 and 2.265 that showed significances. Therefore, H11 was accepted. In the third modified model, service quality could not be linked to customer satisfaction due to insignificance. Therefore, service quality was only linked to perceived product quality and perceived price with C.R. scores of 8.566 and 5.842, respectively. These paths were significant. This finding alarms the market that respondents were not satisfied with inadequate service. However, the service quality given was valued rising respondents’
perception toward quality of product as well as price.
Figure 6.Structural model of thefirst modified model.
Price
The third hypothesis predicts the impact of price on customer satisfaction. This path has a C.R. score of 0.377. Therefore, H2 is rejected. This finding is insignificant with prior studies conducted by Haghighi et al. (2012), Kaiman and Zani (2013) and Runtunuwu et al. (2014). In thefirst and third modified models, price was adapted as perceived price (H12). In the first modified model, the path owned a C.R. score of 1.838 showing insignificance. On the other hand, in the third model, it had a C.R. score of 2.451 signaling a significance. In the second modified model, price was linked to perceived service quality and perceived product quality. The path had C.R. scores of 6.971 and 7.751, respectively, that show significances. Price could not affect customer satisfaction directly (H3).
However, when it was linked to perceive service quality (H6) and perceived product quality (H7), price had a positive and significant influence. Visitor of Pasar Santa might argue that price was not right for creating their satisfaction. However, when the price was mediated by perceived service quality and perceived product quality, their perception about the price was better.
Furthermore, when product quality significantly affected perceived price in the third modified model (H9), perceived price insignificantly affected customer satisfaction (H12) in the first modified model. On the other hand, when service quality significantly affected perceived price (H5), perceived price significantly affected customer satisfaction (H12). In this case, there were different roles between service quality and product quality Figure 7.Structural model of the second mode.
in influencing perceived price. Product quality was considered more important giving a significant influence than service quality on customer satisfaction. Moreover, visitors Figure 8.Structural model of the third modified model.
Table 3.Result summary of the third model hypotheses testing.
C.R. P Results
H4 Product Quality → Perceived service quality 8.628 *** Significant
H5 Product Quality → Perceived price 6.545 *** Significant
H11 Perceived service quality → Customer Satisfaction 4.822 *** Significant
H12 Perceived price → Customer Satisfaction 1.838 0.066 Insignificant
Table 4.Result summary of the second model hypotheses testing.
C.R. P Results
H6 Price → Perceived service quality 6.971 *** Significant
H7 Price → Perceived product quality 7.751 *** Significant
H10 Perceived service quality → Customer Satisfaction 2.265 0.024 Significant H11 Perceived product quality → Customer Satisfaction 1.960 0.050 Significant
Table 5.Result summary of thefirst model hypotheses testing.
C.R. P Results
H4 Service quality → Perceived product quality 8.566 *** Significant
H5 Service quality → Perceived price 5.842 *** Significant
H11 Perceived product quality → Customer satisfaction 4.541 *** Significant
H12 Perceived price → Customer satisfaction 2.451 0.014 Significant
of Pasar Santa might think that product quality was more important than service quality.
Conclusion
This study aimed to measure the impact of product quality, price, and service quality on customer satisfaction. Visitors of a traditional market with a face and coffee shop colony were chosen as samples. Based on the calculation of structural equation model, these three variables failed to predict customer satisfaction. Therefore, the authors built another three modified models to understand the role of each variable. Following the consumer beha- vioral theory, ‘input’ cannot affect another ‘input’. Thus, product quality, price, and service quality were adapted as perceived product quality, perceived price, and perceived service quality in the modified models. In this case, perceived product quality, perceived price, and perceived service quality were considered as‘processes’.
Thesefindings have important implications for traditional market management, parti- cularly the Pasar Santa management. However, perceived product quality, perceived price, and perceived service quality are the most significant elements which most traditional markets offer and eventually impact the overall customer satisfaction and experience. The innovative idea of making a colony of café and coffee shop evidently could attract visitors, not just in number, but also those who are younger and living far away from Pasar Santa location. These findings also broaden literature relating to consumer behavior of tradi- tional markets. Therefore, it presents opportunities for future research. In particular, the study could be replicated in other settings to consider whether there are variables within this particular case study that have influenced the results. Additionally, future research could concentrate on enhancing the product and service quality of traditional markets.
Data were collected in 2015 when Pasar Santa was at a peak in popularity. Thefindings might be different if the same study is repeated in the situation that the number of visitors decreases. However, future studies may consider factors that might influence behavioral intention to revisit this kind of market and also include market atmospherics. According to Kotler (1973), an attractive atmosphere can be used as a marketing tool. This idea is supported by Mehrabian and Russell (1974) who argued that atmosphere can influence a person’s emotion and mood. Also, to include psychographic aspects, such as sensation seeking, variety seeking, and novelty-seeking personalities as what was occurring at Pasar Santa was a phenomenon. Furthermore, as the trend of visitors to the market decreased lately, it is also important to explore customers’barriers for returning.
References
Adi, A., & Yoestini, (2012)Analysis of the impact of price, product quality, and service quality on customer satisfaction (A case of Warung spesial sambal branch of Lampersari Semarang) (Bachelor). Semarang: Universitas Diponegoro. doi:10.1094/PDIS-11-11-0999-PDN
Alegre, J., & Garau, J. (2010). Tourist satisfaction and dissatisfaction.Annals of Tourism Research, 37(1), 52–73. doi:10.1016/j.annals.2009.07.001
Allan, M. (2016). Exploring the relationship between local food consumption and intentional loyalty.Revista De Turism, (21), 33–38.
Bei, L. T., & Chiao, Y.-C. (2001). An integrated model for the effects of perceived product, perceived service quality, and perceived price fairness on consumer satisfaction and loyalty. Journal of Consumer Satisfaction, Dissatisfaction and Complaining Behavior,14, 125–140.
Cantarello, S., Filippini, R., & Nosella, A. (2012). Linking human resource management practices and customer satisfaction on product quality. The International Journal of Human Resource Management,23(18), 3906–3924. doi:10.1080/09585192.2012.665064
Chien, L., & Chi, S. (2019). Corporate image as a mediator between service quality and customer satisfaction: Di-erenceacross categorized exhibitors.Heliyon,5, 1–24. doi:10.1016/j.heliyon.2019.
e01307
Dahlgaard-Park, S. (2012). Core values—The entrance to human satisfaction and commitment.
Total Quality Management & Business Excellence, 23(2), 125–140. doi:10.1080/
14783363.2012.655067
Djatmiko, T., Saragih, R., & Purbaningrum, N. R. (2015). The effects of product quality, service quality, and price on user satisfaction of Honda motorcycle in Bandung. Paper presented at the International Conference on Business, Marketing & Information System Management (BMISM’15) Paris.
Haghighi, M., Dorosti, A., Rahnama, A., & Hoseinpour, A. (2012). Evaluation of factors affecting customer loyalty in the restaurant industry. African Journal of Business Management, 6(14), 5039–5046.
Hallencreutz, J., & Parmler, J. (2019). Important drivers for customer satisfaction–From product focus to image and service quality. Total Quality Management & Business Excellence, 1–10.
doi:10.1080/14783363.2019.1594756
Hu, L., & Bentler, P. (1995). Evaluating model fit. In R. H. Hoyle (Ed.), Structural equation modeling. Concepts, issues, and applications(pp. 76–99). London, UK: Sage.
Hu, L., & Bentler, P. (1999). Cutoff criteria for fit indexes in covariance structure analysis:
Conventional criteria versus new alternatives. Structural Equation Modeling:
A Multidisciplinary Journal,6(1), 1–55. doi:10.1080/10705519909540118
Irawan, A. (2016). Pasar Santa: The power of youth and social media (in Bahasa Indonesia).
Retrieved fromhttp://www.qureta.com/post/pasar-santa-kekuatan-anak-muda-dan-media-sosial Ivanauskienė, N., & Volungėnaitė, J. (2014). Relations between service quality and customer loyalty:
An empirical investigation of retail chain stores in emerging markets. American International Journal of Social Science,3(2), 113–120.
Jover, A., Montes, L., & Fuentes, M. (2004). Measuring perceptions of quality in food products: The case of red wine. Food Quality and Preference, 15(5), 453–469. doi:10.1016/j.
foodqual.2003.08.002
Kaiman, H., & Zani, A. (2013). Influence of service quality and price of houseflat on customer satisfaction (Studies in Marunda flats of North Jakarta). International Journal of Business and Management Invention,2(1), 01–05.
Kassim, A., Igau, O., Harun, A., & Tahajuddin, S. (2014). Mediating effect of customer satisfaction on perceived product quality, perceived value, and their relation to brand loyalty.International Journal of Research in Management & Business Studies,1(2), 13–18.
Kheng, L., Mahamad, O., & Ramayah, T. (2010). The impact of service quality on customer loyalty:
A study of banks in Penang, Malaysia.International Journal of Marketing Studies,2(2), 58–66.
doi:10.5539/ijms.v2n2p57
Kim, H. S., & Shim, J. H. (2017). The effects of service qualities on customer satisfaction and behavioral intention in coffee shops.International Journal of Industrial Distribution & Business,8 (5), 95–109. doi:10.13106/ijidb.2017.vol8.no5.95.
Kotler, P. (1973). Atmospherics as a marketing tool.Journal of Retailing,49(4), 48–64.
Kotler, P., Wong, V., Saunders, J., & Armstrong, G. (2005).Principles of marketing(4 ed.). Essex, England: Pearson Education Limited.
Kusumanegara, E. T., & Sutopo. (2012).Analysis of the impact of price, product variety, and service quality on consumer satisfaction in purchasing at Baskin Robbins Ice Cream at Mal Ciputra Semarang (in Bahasa Indonesia) (Bachelor). Semarang: Universitas Diponegoro. doi:10.1094/
PDIS-11-11-0999-PDN
Liu, W.-K., Lee, Y.-S., & Hung, L.-M. (2017). The interrelationships among service quality, customer satisfaction, and customer loyalty: Examination of the fast-food industry. Journal of Foodservice Business Research,20(2), 146–162. doi:10.1080/15378020.2016.1201644
Malik, M., Ghafoor, M., & Iqbal, H. (2012). Impact of brand image, service quality and price on customer satisfaction in Pakistan telecommunication sector.International Journal of Business and Social Science,3(23), 123–129.
Malik, S. (2012). Customer satisfaction, perceived service quality and mediating role of perceived value.International Journal of Marketing Studies,4(1), 68–76. doi:10.5539/ijms.v4n1p68 Mehrabian, A., & Russell, J. (1974).An approach to environmental psychology. The MIT Press.
Miranda, S., Tavares, P., & Queiró, R. (2018). Perceived service quality and customer satisfaction:
A fuzzy set QCA approach in the railway sector. Journal of Business Research, 89, 371–377.
doi:10.1016/j.jbusres.2017.12.040
Ngoc, K., & Uyen, T. (2015). Factors affecting guest perceived service quality, product quality, and satisfaction–A study of luxury restaurants in Ho Chi Minh City, Vietnam.Journal of Advanced Management Science,3(4), 284–291. doi:10.12720/joams
Orel, F., & Kara, A. (2014). Supermarket self-checkout service quality, customer satisfaction, and loyalty: Empirical evidence from an emerging market.Journal of Retailing and Consumer Services, 21(2), 118–129. doi:10.1016/j.jretconser.2013.07.002
Parasuraman, A., Zeithaml, V., & Berry, L. (2002). SERVQUAL: A multiple-item scale for measur- ing consumer perceptions of service quality.Retailing: Critical Concepts,64(1), 140.
Peng, X., Scott, R., Prybutok, V., & Sidorova, A. (2014). Product quality vs service quality in the mobile industry: Is there a dominant driver of customer intention to switch providers?
Operations Management Research,7(3–4), 63–76. doi:10.1007/s12063-014-0093-x
Rahman, O., Wong, K., & Yu, H. (2016). The effects of mall personality and fashion orientation on shopping value and mall patronage intension. Journal of Retailing and Consumer Services, 28, 155–164. doi:10.1016/j.jretconser.2015.09.008
Runtunuwu, J., Oroh, S., & Taroreh, R. (2014). The impact of product quality, price, and service quality on satisfaction of cafe and resto Cabana visitors in Manado (in Bahasa Indonesia).Jurnal Riset Ekonomi, Manajemen, Bisnis, Dan Akuntansi,2(3), 1803–1813.
Ryu, K., & Han, H. (2010). Influence of the quality of food, service, and physical environment on customer satisfaction and behavioral intention in quick-casual restaurants: Moderating role of perceived price. Journal of Hospitality & Tourism Research, 34(3), 310–329. doi:10.1177/
1096348009350624
Saidani, B., & Arifin, S. (2012). The impact of product quality and service quality towards customer satisfaction and repurchase intention at the Ranch Market (in Bahasa Indonesia). Jurnal Riset Manajemen Sains Indonesia,3(1), 1–22.
Santosa, L. (2016). Pasar Santa preening raised heyday (in Bahasa Indonesia). Retrieved from Antaranews.com website http://www.antaranews.com/berita/598712/pasar-santa-bersolek- bangkitkan-masa-kejayaan
Satu Data Indonesia. (2012). Number of markets managed by PD Pasar Jaya according to the administration city and potential (in Bahasa Indonesia). Retrieved fromhttps://data.go.id/data set/jumlah-pasar-yang-dikelola-pd-pasar-jaya-menurut-kota-adm-dan-potensi
Schermelleh-Engel, K., Moosbrugger, H., & Müller, H. (2003). Evaluating the fit of structural equation models: Tests of significance and descriptive goodness-of-fit measures. Methods of Psychological Research Online,8(2), 23–74.
Schiffman, L., & Wisenblit, J. (2015).Consumer behaviour. New Jersey, NJ: Pearson Education, Inc.
Shaharudin, M., Mansor, S., & Elias, S. (2011). Food quality attributes among Malaysia’s fast food customer.International Business and Management,2(1), 198–208.
So, K., King, C., Sparks, B., & Wang, Y. (2016). The role of customer engagement in building consumer loyalty to tourism brands. Journal of Travel Research, 55(1), 64–78. doi:10.1177/
0047287514541008
Suhud, U., & Wibowo, A. (2016). Predicting customers’ intention to revisit a vintage-concept restaurant.Journal of Consumer Sciences,1(2), 56–59. doi:10.29244/jcs.1.2.56-69
Sumaedi, S., Bakti, I., & Metasar, N. (2011). The effect of students’perceived service quality and perceived price on student satisfaction.Management Science and Engineering,5(1), 88–97.
Suryadarma, D., Poesoro, A., Akhmadi, B. S., Rosfadhila, M., & Suryahadi, A. (2010). Traditional food traders in developing countries and competition from supermarkets: Evidence from Indonesia.Food Policy,35, 79–86. doi:10.1016/j.foodpol.2009.11.002
Sutanudjaja, E. (2015). Pasar Santa, Si Cinderella Kota. Retrieved from http://www.konteks.org/
pasar-santa,-si-cinderella-kota
Tabachnick, B., & Fidell, L. (2007). Using multivariate statistics(5 ed.). Boston Pearson/Allyn &
Bacon.
Tam, J. (2004). Customer satisfaction, service quality and perceived value: An integrative model.
Journal of Marketing Management,20, 897–917. doi:10.1362/0267257041838719
Tan, Q., Oriade, A., & Fallon, P. (2014). Service quality and customer satisfaction in Chinese fast food sector: A proposal for CFFRSERV. Advances in Hospitality and Tourism Research, 2(1), 30–53.
Tey, Y., Brindal, M., Arshad, F., Kusairi, M., Hadi, A., Izani, A., & Darham, S. (2014). The impact of service quality on business commitment in B2B segment of agribusiness: An exploratory study of HORECA sector in Malaysia.International Food Research Journal,21(3), 883–889.
Valaei, N., & Baroto, M. B. (2017). Modelling continuance intention of citizens in government Facebook page: A complementary PLS approach. Computers in Human Behavior,73, 224–237.
doi:10.1016/j.chb.2017.03.047
Venkatesan, R., Mehta, K., & Bapna, R. (2006). Understanding the confluence of retailer character- istics, market characteristics and online pricing strategies. Decision Support Systems, 42(3), 1759–1775. doi:10.1016/j.dss.2006.03.012
Wang, H., Kim, K., Ko, E., & Liu, H. (2016). Relationship between service quality and customer equity in traditional markets. Journal of Business Research, 69(9), 3827–3834. doi:10.1016/j.
jbusres.2016.04.007
Wang, Y., Lo, H., & Hui, Y. (2003). The antecedents of service quality and product quality and their influences on bank reputation: Evidence from the banking industry in China.Managing Service Quality: An International Journal,13(1), 72–83. doi:10.1108/09604520310456726
Wilson, A., Zeithaml, V. A., Bitner, M. J., & Gremler, D. D. (2008).Services marketing. McGraw- Hill Education.
Wongleedee, K. (2015). Marketing mix and purchasing behavior for community products at traditional markets. Procedia-Social and Behavioral Sciences, 197, 2080–2085. doi:10.1016/j.
sbspro.2015.07.323
Yuen, E. F., & Chan, S. (2010). The effect of retail service quality and product quality on customer loyalty. Journal of Database Marketing & Customer Strategy Management, 17(3–4), 222–240.
doi:10.1057/dbm.2010.13
Zeithaml, V. A. (1988). Consumer perceptions of price, quality, and value: A means-end model and synthesis of evidence.The Journal of Marketing,52, 2–22. doi:10.1177/002224298805200302 Zeithaml, V. A., Bitner, M. J., & Gremler, D. D. (2013).Services marketing: Integrating customer
focus across thefirm. New York, NY: McGraw-Hill.
