ANALYSIS OF THE FACTORS AFFECTING CUSTOMER SATISFACTION AND ITS IMPACT TO REPURCHASE INTENTION OF TRAVELOKA CUSTOMER IN SEMARANG
Mudiantono*ˡ Ikka Septya Nuraini ˡ Harry Soesanto1
*
1Department of Management, Faculty of Economics and Business,
Diponegoro University, Semarang 50275, Indonesia
ABSTRACT
Traveloka is an online site that provides flight reservation services and hotel reservations. However, in 2016 Traveloka for hotel room bookings decreased the number of purchases. This study aims to determine the factors that affect customer satisfaction and its impact on repurchase intention.This study uses 7 variables, which is service quality, brand image, advertisement, price perception, customer satisfaction, trust and interest in repurchase intention. Analysis technique used in this research is Partial Least Square (PLS) 2.0 program.The research result of this study indicates that the most factor affecting repurchase intention is customer satisfaction. This customer satisfaction can be increased when the service quality increases.
Keywords: Service quality, brand image, advertisement, price perception,
customer satisfaction, trust, and repurchase intention.
1
INTRODUCTION
Current technology is growing rapidly. The existence of an increasingly evolving technology will help facilitate the community in performing daily activities.In 2016, internet user statistics continued to experience tremendous growth and the number of internet users has reached 132.7 million users or can be said to have exceeded half of the total population in Indonesia. It is equal to51.8%. Along with the increasing number of internet users, it also has a positive impact for companies or businesses in using internet facilities. With the increase of internet users, it will encourage companies to continue to grow, contribute, and innovate with the economic development in Indonesia.
The digital era provides many opportunities for companies. The internet can facilitate companies in finding information about consumers, a means of publication for the company, as a medium for branding, and facilitate the company in selling products.The development of e-commerce is increasingly to make the company continues to compete and contribute in an effort to meet the needs and desires of the community. The advanced of e-commerce is changing people's lifestyles. Technology has helped many people in all activities, such as shopping. When they use online buying then they do not need to spend time and energy to come directly to the store to buy a product.
People not only make daily purchases online.In the digital era, such as today, many people who purchase air tickets, train tickets, and hotel reservation online through airplane and hotel ticket sales websites because it is considered very easy, fast, and practical. According to Techinasia there are many online companies that provide airline tickets and hotel reservations online quickly and conveniently, including Traveloka, Mister Aladin, Tiket.com, NusaTrip, Pegi-pegi.com, Agoda, Ezy Travel, Halal Trip, and Go Indonesia
Consumers are greatly facilitated by the online ticketing sites.It is very effective. Usually, consumers search information first before booking a plane ticket or to book a hotel on an online site.The launch of the Traveloka application on July 31st, 2014, was made to make it easier and save time in ordering. The advantages offered in the Traveloka application are "my ticket". So, tickets that have been booked through the application can be directly displayed on the Traveloka application without having to print and open an email first, making it easier for consumers and save time in checking in. Traveloka applications can be downloaded for free through the App Store and Google Play.
Purchasing airline tickets and hotel reservations on Traveloka can be done easily via smartphone. After opening the Traveloka site or directly open Traveloka application, it can directly choose according to the date of departure or if you want a hotel reservation then can directly choose the hotel in accordance with the budget and desire. After making the reservation, it can make the payment of plane tickets or hotel reservation in various ways that is by transfer, payment through ATM, credit card, CIMB Clicks, Mandiri Clickpay, Mandiri E-cash, BCA Klikpay, Mandiri Debit VbV, and BNI online debit.
Traveloka provides a variety of conveniences to the consumer with a system of booking tickets and hotel reservations are fast, easy and secure payment, providing a variety of ticket and hotel options so that consumers can choose based on the budget and desire. In addition Traveloka create blogs that provide information on hotel recommendations, tourist attractions, blend and tips, travel stories, inspiration and related news Traveloka. Various services provided by Traveloka are intended to provide a good quality of service to consumers so it is expected to provide satisfaction for consumers who impact on repeat purchases made by consumers. But, the data according Similarweb, Traveloka has decreased in country rank. It means that the performance of Traveloka also decreased.
Hellier et. al. (2003) stated that purchase intention is a person's decision to repurchase intention certain goods or services by considering the situation and the level of preference. Consumer repurchases are also influenced by the merits or value of a product or service, the customer has been loyal, satisfied, and committed to the product or service that ultimately leads to future repurchase.
This study aims to determine the factors that affect customer satisfaction and its impact on repurchase intention.
1. Does service quality affect the customer satisfied?
2. Does service quality affect the brand image?
3. Does advertising affect the brand image?
4. Does price perception affect the customer satisfied?
5. Does customer satisfaction affect the trust?
6. Does customer satisfaction affect the repurchase intention?
7. Do price perceptions affect the repurchase intention?
8. Does brand image affect the repurchase intention?
9. Does trust affect the repurchase intention?
LITERATURE REVIEW AND HYPOTHESIS
The Effect of Service Quality to Customer Satisfaction
The customer should be able to achieve real satisfactionwith the inferred quality and value of goods and services(Saidini and Arifin, 2012).Oliver(1997) described satisfaction as a “Complete Customer Response”. In fact, satisfaction is the outcome of the customer’s judgment regarding this issue that to which extent features of a product or a service are able to satisfy customer’s desirable expectations. This definition highlights the assessing nature of the satisfaction that through it the customer specifies whether a product, a brand or a store meets the expectations or not. Because of the complexity of the satisfaction’s structure many ways are available to evaluate it. Satisfaction lasts for a short time, the higher the quality of service, then increasing the customer satisfaction (Karsono, 2007).
H1 : The higher the Quality of Service the higher the Customer Satisfaction.
The Effect of Service Quality to Brand Image
Zeithaml(1998)stated that the quality of service consumers perceives on the product or service is closely related to the reputation associated with the brand. In addition, it is said that the quality received from the product or service relates to the reputation associated with the brand name. According to Nurcholida(2013) quality of service proven to affect brand image and purchasing decisions, the better the quality of service, then the brand image and purchasing decisions will increase.Aaker(2000)stated that to build the brand image there are many ways done by the company, one of them by giving the best quality of product and the best service quality to be able to grow good brand image in the eyes of society.
H2 :The higher the Quality of Service the higher the Brand Image.
The Effect of Advertising to Brand Image
According to Steenkamp et.al. (2005) stated that in order to build brand associations and bring a message about improving product quality, companies can do advertising.Meanwhile, according to Private (2009)the function of advertising is to be able to create the impression or corporate image. Researchers in America believe that strong advertising will be formed from a change in brand image (Moral, 1990). Meanwhile, Swasta (2009) stated that the function of advertising is to be able to create the impression or corporate image.
H3 :The better in Advertising the better the Brand Image.
The Effect of Price Perception to Customer Satisfaction
Perception is how to see the world around. Perception is the process undertaken by individuals in choosing, organizing, and interpreting into meaningful and reasonable images of the world (Schiffman, et. al., 2004). Meanwhile, according to Simamora (2002) perception is an individual process of selecting, organizing and explaining stimuli in a comprehensive picture of the world.Zeithaml and Bitner(2006) mentioned that services greatly affect perceptions about quality, customer satisfaction and value. Services that are intangible and difficult to assess before making a purchase, then the price is usually regarded as an indicator that can affect the perception and expectations about quality. If the price offered is very high, customers will usually expect high quality too, and actual perception will be influenced by expectations. If the price is too high the company is considered unconcerned about the customer. Conversely, if the price given by the company is low, the customer may doubt the company's ability in terms of service quality.
H4 :The higher the Perception of the Price the higher the Customer Satisfaction.
The Effect of Customer Satisfaction to Trust
Tjiptono(2001) points out that customer trust is a customer response to the evaluation of the perceived mismatch between expectations and actual performance of the product in its users. Customer trust can be used as an evaluation of customer satisfaction and see customer expectations.Lau and Lee(1999) argued that trust in a brand is important in the formation of consumer loyalty, the willingness of consumers to trust or rely on services in risk situations due to the expectation that the product gives satisfaction and positive results.The results of research conducted by Djati and Ferrina(2004) stated that the human element is more influential on customer loyalty through satisfaction and trust.
H5 :The higher the Customer Satisfaction the higher the Trust.
The Effect of Customer Satisfaction to Repurchase Intention
Martin et. al. (2007) defined a consumer satisfaction as one important factor to be able to see consumer behavior and see specifically repeat purchase.Dholakia and Zhao(2010) attribute judgment dominate the satisfaction and interest of buy back. Hume and Mort (2010) stated that the results of research indicate the intention of repurchase is largely based on satisfaction mediated by perceived value. Hellieret. al. (2003) in his research stated that customer satisfaction has a direct positive effect on buying interest.
H6 :The higher the Customer Satisfaction the higher the Repurchase Intention.
The Effect of Price Perception to Repurchase Intention
Zeithmal(1998) stated that the price is a sacrificed by the consumer to get a product. According to Sweeney, et al.(1998) stated that in buying a product, consumers not only consider the quality alone, but also see the benefits provided by the product and the feasibility of the price set by the company.The research that has been done by Raharso and Sri(2005) stated that the price perceived by consumers has an influence that can generate repurchase interest made by consumers on a product in the future.
H7 :The higher the Perception of the Price the higher the Repurchase Intention.
The Effect of Brand Image to Repurchase Intention
According to research conducted by Rao and Monroe(1989) stated that price, brand image, and store names are used as an indicator of the quality by consumers. The link between the brand image and recall interest is proposed by Haubl(1996) which stated that the brand is going to influence the high interest in the repurchase intention of a product. This is also supported by the results of research conducted by Graeff (1996) which states that the development of a product in purchasing a product.
H8 :The better the Brand Image the higher the Repurchase Intention.
The Effect of Trust to Repurchase Intention
According to Simamora(2002)interest in buying a product arises because of the basis of trust in products that marketing is done wisely, companies that can achieve and maintain differentiation will be the company's above-average performance in the industry. Howard (2008)said that consumers' interest in repurchasing is an inward-looking matter that reflects the buyer's plan to repurchase a particular product that he or she has previously done. When a consumer trust a brand, the consumer has a positive buying intention toward the brand. Even did not close the possibility of a consumer will make arepurchase intention to a preferred brand (Ardhanari, 2008).
H9 :The higher the confidence the higher the Repurchase Intention.
THEORETICAL FRAMEWORK
Based on the hypothesis formulation above, the theoretical framework can be drawn.
Source: Bahram Ranjbahrian (2012), Margee Hume dan Gillian Sivillan (2010),
Nurcholidah (2013), Asti Artisti (2014), Christoperdan Ronald (2015),
Popo Suryana (2013), andFirdaFadillahandHartiwiPrabowo (2014).
RESEARCH METHOD
Research Variable
The Independent Variables in this research areservice quality (X1), Advertisement (X2), Price Perception (X3). The dependent variable in this research is repurchase intention (Y4). Intervening variable in this research isCustomer Satisfaction (Y1), Brand Image (Y2), Trust (Y3).
Sampling Method
Populations in this research were consumers of Traveloka who have made purchases at least once in 2016 until 2017 in Semarang. The samples in this research was 200 respondents. The method sampling was non probability sampling taken from the offline questionnaire
Analysis Method
In this study data analysis used is by using Partial Least Square (PLS) approach. Partial Least Square (PLS) is an equation model of Structural Equation Modeling (SEM) based on components or variants.
RESULT AND DISCUSSION
- Measurement Model
The Value of Loading Factor from Outer Loadings
Initial ModelService quality (X1)
X1.1 / 0,819024
X1.2 / 0,791626
X1.3 / 0,413441
X1.4 / 0,779245
X1.5 / 0,756405
Advertisement (X2)
X2.1 / 0,848077
X2.2 / 0,937188
X2.3 / 0,572149
Customer Satisfaction (Y1)
Y1.1 / 0,827635
Y1.2 / 0,790012
Y1.3 / 0,787284
Brand Image (Y2)
Y2.1 / 0,843090
Y2.2 / 0,809838
Y2.3 / 0,817415
Trust (Y3)
Y3.1 / 0,807948
Y3.2 / 0,855014
Y3.3 / 0,833125
Repurchase Intention (Y4)
Y4.1 / 0,874353
Y4.2 / 0,833198
Y4.3 / 0,696861
Source: Processed data, 2017
- Average Variance Extracted (AVE)
Criteria for validity and reliability can also be seen from the reliability value of a construct and the Average Variance Extracted (AVE) value of each construct. The construct is said to have high reliability if its value is 0.60 (Ghozali, 2011). AVE can be said to be good if it is above 0.50. Table below shows Composite Reliability and AVE values for all variables.
Composite Reliability and Average Variance Extracted (AVE)
Composite Reliability / Average Variance Extracted (AVE)Service Quality (X1) / 0,871732 / 0,529559
Advertisement (X2) / 0,837912 / 0,642637
Price Perception (X3) / 0,822286 / 0,610579
Customer Satisfaction (Y1) / 0,843757 / 0,643024
Brand Image (Y2) / 0,863464 / 0,678264
Trust (Y3) / 0,871085 / 0,692643
Repurchase Intention (Y4) / 0,846031 / 0,648690
Source: Processed data, 2017
Research Hypothesis Testing
Hypothesis 1. Is accepted, hyphotesis 2. is accepted, hypothesis 3. is accepted, hypothesis 4. is accepted, hypothesis 5 is accepted, hypothesis 6 is accepted, hypothesis 7 is accepted, hypothesis 8 is accepted, and hypothesis 9 is rejected.
5. CONCLUSION AND RESEARCH LIMITATION
Source: Processed data, 2017
R-square
R SquareCustomer Satisfaction / 0,497131
Brand Image / 0,512587
Trust / 0,574943
Repurchase Intention / 0,565876
Source: Processed data, 2017
This study uses a model developed from the theoretical concepts of previous research and is expected to provide empirical support to the former model. A literature review conducted and based on the data obtained has led researchers to produce a study formed by using three independent variables, namely Service Quality, Advertising and Price Perception, then three intervening variables is Customer Satisfaction, Brand Image, and Trust and one dependent variable Repurchase Intention. Here are somethings that relate to the following theoretical implications:
1. The better of the quality of service provided by the company will lead to customer satisfaction. This is in line with the researchs conducted by Kotler (2005) and Karsono (2007). In their research hypothesis statedthat the quality of service influenced positively and significantly to customer satisfaction.
2. The better of the quality of service provided by the company will grow the company's brand image. This is proven the researchs conducted by Aaker (2000) and Nurcholidah (2013). In the research resulted the hypothesis that service quality has positive and significant influence to Brand Image.
3. The better of the advertising the company will affect the company's brand image. This supports the researchs done by Steenkamp et.al. (2005), Private (2009), (Moral, 1990) and Aaker (2000). In this research hypothesized that the advertising has a positive and significant effect on Brand Image.
4. The price set by the company in accordance with the desired consumer will affect customer satisfaction. This supports the researchs conducted by Zeithaml and Bitner (2006) and (Tjiptono, 1999). In this research resulted hypothesis that price perception has a positive and significant effect on customer satisfaction.
5. The better of the satisfaction felt by the customer will affect customer trust. This is in line with researchs conducted by Vandayuli (2003), Aaker (1996) and Lau and Lee (1999). In this research resulted the hypothesis that customer satisfaction have a positive effect on trust
6. The better of the satisfaction received by consumers will affect consumer interest in the company. It is almost the same with researchs conducted by Martin et al. (2007) and Widiana (2010). In this research, the hypothesis of customer satisfaction will have a positive effect on trust.
7. The suitability of the prices consumers obtains on purchases made will have an effect on consumer buying interest. This supports the researchs conducted by Zeithmal (1998), Sweeney, et al (1998), and Raharso and Sri (2005). In research conducted to produce price perception hypothesis have a positive effect on interest to repurchase intention.
8. The better of the brand image of the company will affect consumer buying interest. This is in accordance with research conducted by Haubl (1996), Rao and Monroe (1989). In research conducted to produce a brand image hypothesis have a positive effect to the interest of repurchase intention.