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Kevin Marchius ANALYSING THE BUSINESS POTENTIAL FOR INDONESIAN CULINARY

TOURISM, CASE STUDY: BUMI SERPONG DAMAI AREA

By

Kevin Marchius 13310142

BACHELOR’S DEGREE in

[BUSINESS ADMINISTRATION- HOTEL AND TOURISM MANAGEMENT CONCENTRATION]

[BUSINESS ADMINISTRATION AND HUMANITIES]

SWISS GERMAN UNIVERSITY EduTown BSD City

Tangerang 15339 Indonesia

Revision after the Thesis Defense on [12 January 2015]

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Kevin Marchius 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.

_____________________________________________

Student: Kevin Marchius Date

Approved by:

_____________________________________________

Thesis Advisor: Mr. Vishnuvardhana Soeprapto BA,

MA Date

_____________________________________________

Thesis Co-Advisor: Ms. Munawaroh SE, MM Date

_____________________________________________

Dean: Prof. Eric Jos Nasution, MBA, MA, Ph.D Date

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Kevin Marchius ABSTRACT

ANALYSING THE BUSINESS POTENTIAL FOR INDONESIAN CULINARY TOURISM, CASE STUDY:

BUMI SERPONG DAMAI AREA

By

Kevin Marchius

Vishnuvardhana Soeprapto BA, MA, Advisor Munawaroh, SE, MM, Co-Advisor

SWISS GERMAN UNIVERISTY

Bumi Serpong Damai (BSD) city located in Indonesia at Serpong district, south of Tangerang. This city inaugurated on January 16, 1984. BSD City is satellite city of Tangerang because the facilities available in this city including industrial estates, offices, commerce, education, tourism and housing.

The purpose of this research is to analyze the culinary aspect that focuses on the business potential for Indonesian culinary tourism. The person visiting BSD is selected to represent the sample size of this research. Data gathering was done through quantitative method with total 120 respondents. Data testing for reliability and validity is computed by SPSS software for mac and data analysis is computed by AMOS software and interpreted with SEM analysis. This research is a descriptive study and the sources of data are primary and secondary.

Based on the research result shows that there is a positive significant correlation between location and consumer decision for Indonesia Culinary Tourism in Bumi Serpong Damai area with correlation coefficient of 0.82 and its square correlation is 67.24% with strength association is strong.

Keywords: Business, Potential, Culinary, Tourism

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Kevin Marchius

© Copyright 2015 by Kevin Marchius

All rights reserved

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Kevin Marchius DEDICATION

I dedicate this thesis for my parents.

Thank you for the love and freedom you given to me.

The love you give me will never grow old.

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Kevin Marchius ACKNOWLEDGEMENTS

First of all I would to thank you Jesus Christ, for his blessings and love for guide me through this whole thesis process and I would like to thank my family especially my father and mother who always support for this last four years. And I would like to thank my brother and sister who always support me when I was in hard situation. I would like to thank my cousin, who always support, patient during hard condition.

I would like to thank my advisor and Co-advisor Mr. Vishnuvardhana Soeprapto, B.A, M.A and Ms. Munawaroh, S.E, M.M for his and her patience in answering all my questions and inspired me a lot through their knowledge.

I would like to thank to all my friends especially Cynthia Deviana, Denny H.

Trinugroho, Ellen Mulyono, Hector Tumewu, Lucia Yani Surya, Melisa Soetarso, Michael Nur, Radityo Nandiasa, Ricky Ananda and Sarah Anneta. Thank you for all great laugh, experiences and support during hard times.

Last I would like to thank of the HTM lectures: Mr. Isna, Ms. Karina Aviana, Mr.

Samuel PD Anantadjaya, Mr. Tommy Saroso, who have been very helpful and assisted me in completing this thesis.

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Kevin Marchius TABLE OF CONTENTS

Page

STATEMENT BY THE AUTHOR ... 1

ABSTRACT ... 2

DEDICATION ... 4

ACKNOWLEDGMENTS ... 5

TABLE OF CONTENTS ... 6

LIST OF FIGURES ... 10

LIST OF TABLES ... 11

CHAPTER 1 – INTRODUCTION ... 13

1.1 Background ... 13

1.1.1 Vision ... 14

1.1.2 Mission ... 14

1.1.3 Map of Bumi Serpong Damai (BSD) City ... 14

1.1.4 Master plan of Bumi Serpong Damai (BSD) City ... 15

1.1.5 Location of Bumi Sepong Damai (BSD) City ... 16

1.1.6 Research Problem ... 16

1.1.7 Research Questions and Hypothesis ... 16

1.1.8 Objectives ... 18

1.1.9 Significance of Study ... 18

1.1.10 Scope and Limitations ... 18

1.1.11 Thesis Structure ... 19

CHAPTER 2 – LITERATURE REVIEW ... 20

2.1 Framework of Thinking ... 20

2.1.1 Culinary Arts Theory ... 22

2.1.2 Culinary Competency ... 22

2.1.3 Culinary Tourism Theory ... 29

2.1.4 Restaurant Theory ... 30

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Kevin Marchius

2.1.5 Type of Restaurant ... 30

2.1.6 Restaurant Management Theory ... 32

2.1.7 Traditional Restaurant Theory ... 33

2.1.7.1 Old Traditional Restaurant or Street Cart ... 33

2.1.7.2 Standard opening a new restaurant ... 33

2.1.8 Tourism Theory ... 39

2.1.8.1 Tourism Management ... 39

2.1.8.2 Tourism Impacts ... 43

2.1.8.3 Type of Tourism ... 46

2.1.8.4 Business Theory ... 47

2.1.8.5 Business Tourism Theory ... 49

2.1.8.6 Business Restaurant Theory ... 49

2.1.8.7 Urban Area ... 52

2.1.8.8 Type of Customers ... 52

2.1.8.9 Product Quality ... 53

2.1.8.10 Concept of Product Quality ... 53

2.1.8.11 Service Quality ... 53

2.1.8.12 Concept of Service Quality ... 54

2.1.8.13 Price…………. ... 54

2.1.8.14 Location… ... 55

2.1.8.15 Promotion ... 55

2.1.8.16 Consumer Decision ... 55

2.1.8.17 Business Potential ... 56

2.2 Previous Study ... 56

CHAPTER 3 – RESEARCH METHODS ... 58

3.1 Research Process ... 59

3.2 Type of Research ... 60

3.3 Type of Data ... 60

3.3.1 Primary Data ... 60

3.3.2 Secondary Data ... 60

3.4 Research Instrument ... 60

3.5 Populations and Sample Size ... 61

3.5.1 Population ... 61

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3.5.2 Sample Size ... 61

3.5.3 Sampling Method ... 63

3.6 Research Model ... 63

3.6.1 Question Design ... 66

3.7 Research Questions and Hypothesis ... 70

3.7.1 Questions ... 70

3.7.2 Hypothesis ... 70

3.8 Reliability and Validity ... 72

3.8.1 Reliability ... 72

3.8.2 Validity ... 72

3.9 Data Analysis ... 73

3.10 Coefficient of Correlation ... 73

3.11 Structural Equation Model (SEM) ... 74

3.12 Path Diagram ... 74

CHAPTER 4 – RESULTS AND DISCUSSIONS ... 75

4.1 City Profile ... 75

4.1.1 Properties, Office and Retail, Commercial, Residential at Bumi Serpong Damai Area ... 75

4.1.2 Bumi Serpong Damai (BSD) City Land ... 76

4.1.3 Facilities ... 78

4.1.4 List of Restaurant in Bumi Serpong Damai (BSD) City ... 79

4.2 The Validity and Reliability Test ... 85

4.2.1 Validity Test (Pre-Test) on 30 Respondents ... 86

4.2.2 Product Quality Validity Test ... 86

4.2.3 Service Quality Validity Test ... 87

4.2.4 Price Validity Test ... 88

4.2.5 Location Validity Test ... 88

4.2.6 Promotion Validity Test ... 89

4.2.7 Consumer Decision Validity Test ... 89

4.2.8 Business Potential Validity Test ... 90

4.3 Reliability Test (Pre-Test) on 30 Respondents ... 91

4.4 Reliability and Validity Test (Post-Test) for 120 Respondents ... 92

4.4.1 Product Quality Indicators ... 92

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4.4.2 Service Quality Indicators ... 93

4.4.3 Price Indicators ... 94

4.4.4 Location Indicators ... 95

4.4.5 Promotion Indicators ... 96

4.4.6 Consumer Decision Indicators ... 97

4.4.7 Business Potential Indicators ... 98

4.5 Respondents Demographic Information ... 99

4.5.1 Gender ... 99

4.5.2 Marital Status ... 100

4.5.3 Age ... 101

4.5.4 Education Background ... 101

4.5.5 Occupation ... 102

4.5.6 Monthly Income ... 103

4.5.7 How often do you eat at a restaurant? ... 103

4.5.8 What is the purpose do you visit a restaurant in Bumi Serpong Damai?. ... 104

4.5.9 What is the main reason of choosing restaurant in Bumi Serpong Damai? ... 105

4.6 Structural Equation Modeling Analysis ... 106

4.6.1 PATH Diagram ... 106

4.6.2 Goodness of Fit (GFI) ... 107

4.6.3 PATH Diagram Interpretation ... 109

4.7 Hypothesis Analysis ... 110

CHAPTER 5 – CONCLUSION AND RECOMMENDATIONS ... 119

5.1 Conclusion ... 119

5.2 Recommendations ... 119

GLOSSARY ... 121

REFERENCES ... 123

APPENDICES ... 129

Appendix 1: Pearson Table (table of critical values for Pearson correlation) . 128 Appendix 2: Kata Pengantar ... 129

Appendix 3: Introduction ... 129

Appendix 4: Questionnaire (Bahasa) ... 129

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Appendix 5: Questionnaire (English) ... 137

Appendix 6: Questionnaire results ... 144

Appendix 7: BSD City Fountain ... 148

Appendix 8: BSD City Landmark ... 148

Appendix 9: Indonesian Taste Restaurant (Solaria) ... 149

Appendix 10: Other Taste Restaurant (Roti Panggang Tutup Panci) ... 149

Appendix 11: Chinese Taste Restaurant (Kedai Kopi Papa Ong) ... 150

CURRICULUM VITAE ... 151

LIST OF FIGURES Figures Page Figure 2.1 Framework of Thinking ... 20

Figure 2.2 The model of innovative culinary competency ... 27

Figure 3.1 Research Process ... 59

Figure 3.2 Research Model ... 64

Figure 3.3 Consumer Decision Model ... 65

Figure 3.4 Business Potential Model ... 65

Figure 4.1 Gender of Respondents ... 99

Figure 4.2 Marital Status of Respondents ... 100

Figure 4.3 Age of Respondents ... 101

Figure 4.4 Education Background of Respondents ... 102

Figure 4.5 Occupation Background of Respondents ... 102

Figure 4.6 Income of Respondents ... 103

Figure 4.7 Frequency of visit a restaurant in Bumi Serpong Damai ... 104

Figure 4.8 Purpose of visit a restaurant in Bumi Serpong Damai ... 104

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