Research Operational Variable RESEARCH METHODOLOGY

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E. Research Operational Variable

Variable is anything that is an object, event, act, characteristic, trait, or attribute of observation in research and concepts that can be measured and to which assigned categorical values Cooper, 2006:63. The variable in this research consist of independent variable and dependent variable, which is: 1. Independent Variable According to Cooper 2006:63, independent variable is the variable manipulated by the researcher that gives influence or the causal of the changes happen or the effect from dependent variable. In this research as the independent variables are customer value X1, trust in brand X2, and customer satisfaction X3. 2. Dependent Variable According to Cooper 2006:63, dependent variable is the variable measured, predicted, or otherwise monitored by researcher; expected to be affected by manipulation of independent variable. The dependent variable of this research is customer loyalty Y. 69 Table 3.2 The Operational Variables: Variable Sub Variable Indicators Scale Customer Value X1 Sheth et a., 1999 and Soutar and Sweeney 2001 quoted by J. Brock Smith and Mark Colgate 2007 Functional Value  Coca-Cola non alcoholic soft drink.  Coca-Cola do not acute-health effect.  Coca-Cola as source of increasing calories in the body. Likert Social Value  Good reputation as Soft Drink Company.  Coca-Cola has never got involve with deception case. Likert Emotional Value  Sense of relaxed in the brand and product  Feeling secured with the product.  Sense of excitement with the product. Likert 70 Variable Sub Variable Indicators Scale Customer Satisfaction X2 Parasuraman and Grewal 2000:169 Quality of Products Thomas H. Dodd, 2006: Safety Durability Freshness  Coca-Cola does not contain microbe and chemical contamination.  Coca-Cola always mentions production code and date of expired.  Feeling fresh with the product.  Like Coca-Cola general appearance andor odor. Likert Emotional Factor  Sense of pride in the brand and product.  Confidence for Coca-Cola brand. Likert Price  Coca-Cola achievable price  Coca- Cola‘s price associated with the customer quality expectations. Likert Cost and ease of  Cheap costs and easy to findbuy the product. Likert 71 Variable Sub Variable Indicators Scale Trust in Brand X3 Lau and Lee 1999 quoted by Hasan Afzal et al., 2010 Brand Reputation  Brands that are well known and has a good reputation.  Positive news about soft drink brand. Likert Brand Predictability  Performance of brand associated with customer expectations.  Knowledge of customer about the brand. Likert Brand Competence  Ability to solve customer‘s problem.  Coca-Cola compatible with customer‘s needs. Likert Trust In Company  The Coca-Cola Company will not deceive customer. Likert Company Reputation  Good corporate reputation in the custo mer‘s mind as Multinational Corporation. Likert Company‘s Trust Perceived Motives  The attention of company to customers. Likert Similarity between consumer self- concept.  There is similarity of brand with customer emotion. Likert Brand Personality  Coca-Cola associated with customer‘s personality. Likert Brand Liking  Customers like to the brand. Likert 72 Variable Sub Variable Indicators Scale Customer Loyalty Y Oliver in Lovelock and Wirtz 2004:352 Cognitive Loyalty  Coca-Cola is better than other brand and associated with customer desired.  The confidence of customer for the brand. Likert Affective Loyalty  Highly consumer preference.  Highly consumer liking for the brand. ikert Conative Loyalty  Highly purchase intention to the brand. Likert Action Loyalty  The existence of repeat purchases in the future.  Recommend to other. Likert 73

CHAPTER IV ANALYSIS

A. General Description of Research Object 1.

History of Coca-Cola Coca-Cola is a carbonated soft drink sold in stores, restaurants, and vending machines in more than 200 countries. Coca-Cola soft drink was created by Dr. John S. Pemberton, a pharmacist from Atlanta, Georgia, USA, in May 1886. The Coca-Cola Company was founded in 1892 by Asa G. Chandler in Atlanta, who also patented the Coca-Cola trademark. This company is the main of all the bottling company that owns the trademark Coca-Cola throughout the country in the world by providing the raw material concentrates. President of Coca-Cola Company 1919-1955, Robert W. Woudruff, is the person who first introduced the idea that Coca- Cola drinks can be enjoyed not only by Americans, but also to be consumed by the entire nation in the world. To realize this idea, then in 1929 founded The Coca-Cola Export Cooperation, the company that handles the sale of beverages throughout the country in the world with quality based, flavor, and the same freshness. www.thecocacolacompany.com

2. History of Coca-Cola Amatil Indonesia CCAI

Coca-Cola Amatil Indonesia CCAI has been operating in Indonesia since 1992 and provides all the company product variants, including 73