The Influence of Percemed Value, Brand Reputation to Customer Commitment Through Consumer Trust On Online Shopping at WWW TOKO BAGUS.COM

i

THE INFLUENCE OF PERCEIVED VALUE, BRAND

REPUTATION TO CUSTOMER COMMITMENT THROUGH

CONSUMER TRUST ON ONLINE SHOPPING AT

WWW.TOKOBAGUS.COM

(Study Case : Consumer of Tokobagus.com in Bintaro, Ciputat, and BSD )

THESIS

Submitted to Faculty of Economics and Business in Partial Requrements for Acquiring the Bachelor Degree of Economics

By:

FITRI AYASOFIA

109081100014

DEPARTMENT OF MANAGEMENT

INTERNATIONAL CLASS PROGRAM

FACULTY OF ECONOMICS AND BUSINESS

SYARIF HIDAYATULLAH STATE ISLAMIC UNIVERSITY

JAKARTA

ii

SHEET STATEMENT

AUTHENTICITY SCIENTIFIC WORKS

Signature Below :

Name : Fitri Ayasofia Student Number : 109081100014

vi

Curriculum Vitae ( CV )

A. Personal Data

Full Name : Fitri Ayasofia

Nickname : Aya

Gender : Perempuan

Place and DOB : Jakarta, 6 april 1991

Address : Perumahan Karya Indah Village II Blok BB/10 – 11 Pondok aren, Tangerang Selatan 15222

Nationality : Indonesia

Religion : Islam

Height/Weight : 160 cm / 65 kg

Health : Very Good

Telepon& HP : (021)7311706 / 081218951859 E-mail : aiyasofia@ymail.com

B. Family Data

1. Father : Dr. Hasyim, SE, M.Ed

Place and DOB : Makassar, December 12 1960 Occupation : Lecture

Last Education : S3

2. Mother : Sumarni Sulaeman Place and DOB : Makasar, June 28 19960 Occupation : Civil Servant

Last Education : D3

3. Sister : Yusrini Anugrah Pratiwi Place and DOB : Jakarta, June 17 1994 Occupation : Student

vii C. EDUCATION

Formal

1995 – 1997 : TK 0 kecil & 0 besar TK Annisaa. Jombang, Pondok Aren, Tangerang

1997 – 2003 : SD Negeri Pesanggrahan 03 pagi. Kodam, Bintaro, Jakarta Selatan

2003 - 2006 : SMP Negeri 161. Kebayoran Lama, Jakarta Selatan 2006 – 2009 : SMA TERPADU Krida Nusantara, Bandung

2009 – 2013 : Program Sarjana (S-1) Management (International class) UIN Syarif Hidayatullah, Jakarta

Non Formal

2001 – 2003 : IMA aritmatika course, Jakarta (certified) 2003 – 2004 : English Course at LBPP LIA, Jakarta 2004 - 2005 : English Course at Oxford, Jakarta

viii ABSTRACT

This research aim to analyze the influence of perceived value and brand reputation to consumer commitment through consumer trust of online shopping in

www.Tokobagus.com in region Ciputat, Bintaro and BSD. Convenience sampling

method has been selected to obtain data required at this study. The research utilize 60 respondents and overall of respondents are in Ciputat, Bintaro and BSD who are use the services of online shopping in www.Tokobagus.com. Analytical method used is path analysis. The result of this research show that : The consumer perceived value and brand reputation have significant influence simultaneously and partially in consumer trust on first structural equation. The second structure equation shows that : the consumer perceived value and consumer trust have significant influence simultaneously on consumer commitment. The brand reputation have no significant influence partially on consumer commitment, but the variable perceived value and consumer trust have significant influence partially on consumer commitment.

Keyword : perceived value, brand reputation, consumer trust, consumer commitment

ix ABSTRAK

Tujuan utama dari penelitian ini adalah untuk menganalisa pengaruh nilai persepsi, reputasi merek terhadap komitmen konsumen melalui kepercayaan konsumen pada belanja online di www.tokobagus.com untuk region Ciputat, Bintaro dan BSD. Pengumpulan sampling menggunakan metode convenience sampling digunakan untuk mengumpulkan data penelitian ini. Penelitian ini menggunakan 60 responden dan keseluruhan responden berada di Ciputat, Bintaro dan BSD yang menggunakan jasa belanja online di www.tokobagus.com. Metode penelitian ini menggunakan analisa jalur. Hasil dari penelitian ini menunjukkan : persepsi nilai dan reputasi merek memiliki pengaruh yang signifikan terhadap kepercayaan konsumen secara simultan dan parsial pada struktur satu. Struktur dua hasil penelitian menunjukkan bahwa : nilai persepsi dan kepercayaan pelanggan memiliki pengaruh yang signifikan terhadap komitmen konsumen secara simultan. Reputasi merek tidak memiliki pengaruh yang simultan terhadap komitmen konsumen secara parsial, namun nilai persepsi dan kepercayaan konsumen memiliki pengaruh secara parsial terhadap komitmen konsumen.

Kata Kunci : nilai persepsi, reputasi merek, komitmen konsumen dan kepercayaan konsumen

x

PREFACE

Bismillahhirrahmannirrahim, AssalammualaikumWr. Wb

Alhamdulillahhirabbilalamin, All praise and thanks to God almighty Allah SWT for all His the favor and guidance, which always give directions, strength and spiritual, as well as healthy, so I can complete this thesis to obtain a degree in Economics and business UIN Syarif Hidayatullah Jakarta.

In the process of the preparation of this thesis, the author very aware of all the weakness that the author had, but with the permission of Almighty God Allah SWT, hard work, prayers, and a strong desire to complete this thesis and of course the never-ending support provided by family, friends, boyfriend, counselors and teachers, this thesis may be completed eventually. The amount of gratitude I say unto:

1. My parents, my father Dr.Hasyim, SE, M.Ed and my mother Sumarni who give their best, all the effort they gave with my goal to be a better person, more success for the future and a happy. Papa Hasyim who was always patient and always ready to take the time to help and teach me from start to finishing this thesis.

2. Mr. Prof. Dr. Abdul Hamid, MS as Dean of Economic and Business Faculty state Islamic university Syarif Hidayatullah Jakarta

3. Mr Dr. Yahya Hamja., MM as my supervisor I, thank you for all advices and the ease that you gave to me during guiding to finishing my thesis. 4. Mrs Cut Erika as my supervisor II, thank you for all advices that you gave

to me during guiding my thesis.

5. Mrs Leis Suzanawaty, SE, M.Si as my academic supervisor for almost five years, thanks for your all your signature so I can live my college because of your permission.

xi 6. all the lecturers and employees of the Faculty of Economics and business of UIN Syarif Hidayatullah over all the outpouring of science and service that has been given.

7. to my sister dear, Yusrini Anugrah Pratiwi who always give support and affection for your beloved sister, so I encouraged to promptly complete the thesis and I hope I pass as a Bachelor of economics can spur the sister to immediately complete Lecture course with value and better results and can boast of both parents.

8. For one of the special person in my life, Hary Trisetyo a very patient and never bored to accompany, support when I‟ve got lazy, when I'm down, and a person who are always present in any circumstance and when I really need the spirit.

9. For friends of compatriots in lectures to prepare and complete the thesis, Rara Anggun Tias, Vera Suciyati, and the Somalian, Luqman Omar. May our friendship persists for long and see you at the height of the success guys!

10.For friends in management international force 2009, both had graduated in advance, my compatriots in completing the thesis, as well as a friend In Shaa Allah soon following the completed thesis. Thank you for togetherness during the lecture.

11.For all siblings, relatives, uncle and aunty, which always give support the spirit of regeneration also morale.

12.As well as the other parties which are helps, I cannot mention one by one I apologies and I say thanks to the fullest it.

The author is aware of the limitations, but there are still many authors look forward hopefully convey the author's thought that Donations can provide benefits for the reader.

xii WassalammualaikumWr.Wb

Jakarta, 6 September 2013 Author

xiii

LIST OF CONTENT

COVER

IN COVER ... i

Statement of Authenticity Sheet Papers ... ii

Curriculum Vitae ... vi

Abstract ... viii

Abstrak ... ix

Preface ... x

List of Content ... xiii

List of Table ... xvi

List of Picture ... xix

List of Attachment... xx

CHAPTER I INTRODUCTION ... 1

A. Research Background... 7

B. Problem Formulation ... 8

C. Research Purpose ... 9

D. Benefit of Research ... 9

CHAPTER II LITERATUR REVIEW ... 10

A. Variable Definition ... 10

1. Definition of Brand ... 10

2. Consumer Behavior ... 12

3. Internet, E-commerce, and online shopping ... 14

4. Definition of Brand Reputation ... 16

5. Definition of Consumer Perceive Value ... 20

6. Definition of Consumer Trust ... 24

xiv

B. Previous Research ... 34

1. Brand Reputation with the Consumer‟s Trust ... 34

2. Customer (Perceived) Value with the Consumer‟s Trust ... 35

3. Customer (Perceived) Value with the Customer Commitment... 36

4. Brand Reputation with the Customer‟s Commitment ... 37

5. Consumer‟s trust with the Customer‟s Commitment ... 37

C. Conceptual Framework ... 38

D. Hypothesis ... 43

E. Hypothesis Statistically ... 45

CHAPTER III RESEARCH METHODOLOGY ... 48

A. Scope of The Research ... 48

B. Population and Sample ... 49

1. Population ... 49

2. Sample ... 50

C. Data Resource and Data Collecting Method ... 50

1. Primary Data ... 50

2. Secondary Data ... 51

D. Analysis Method ... 51

1. Validity and Reliability Test ... 51

a. Validity Test ... 51

b. Reliability Test ... 52

2. Path Analysis ... 52

E. Operational Variables ... 55

CHAPTER IV ANALYSIS AND DISCUSSION ... 71

A. General Description of Research Object... 71

1. What is Tokobagus.com ... 71

2. Short history ... 71

B. Analysis and Discussion ... 73

1. Validity Test ... 73

2. Reliability Test ... 76

C. Finding Research ... 77

1. Characteristics and Data of Respondent ... 77

2. Descriptive Analysis ... 79

xv

b. Brand reputation ... 87

c. Consumer trust ... 92

d. Customer Commitment ... 97

D. Analysis 1. Path Analysis ... 103

2. F Test (Simultate Test) ... 110

3. T Test (Parsial Test) ... 113

CHAPTER V CONCLUSION AND IMPLICATION ... 129

A. Conclusion ... 129

B. Implication ... 131

1. For a Company ... 134

2. For Academicians... 136

REFERENCE ... 137

xvi LIST OF TABLE

3.1 Likert Scale Table ... 60

3.2 Operational Variable ... 69

4.1 Table of Validity Test ... 74

4.2 Reliability Statistic ... 76

4.3 Profile Respondents Base on Gender ... 77

4.4 Profile Respondents Based on Professions ... 78

4.5 Frequency of Respondents Answer About Customer Total Value ... 79

4.6 Frequency of Respondents Answer About Customer Total Value ... 79

4.7 Frequency of Respondents Answer About Customer Total Value ... 80

4.8 Frequency of Respondents Answer About Customer total value ... 80

4.9 Frequency of Respondents Answer About Customer overall judgement ... 81

4.10 Frequency of Respondents Answer About Customer overall judgement ... 81

4.11 Frequency of Respondents Answer About Monetary Value... 82

4.12Frequency of Respondents Answer About Monetary Value... 82

4.13 Frequency of Respondents Answer About Trade-off between benefit & cost ... 83

4.14 Frequency of Respondents Answer About Trade off between benefit & cost ... 84

4.15 Frequency of Respondents Answer About Service Quality ... 84

4.16 Frequency of Respondents Answer About Service Quality ... 85

4.17 Frequency of Respondents Answer About Professionalism ... 85

4.18 Frequency of Respondents Answer About Professionalism ... 86

4.19 Frequency of Respondents Answer About Price fairness ... 86

4.20 Frequency of Respondents Answer About Price fairness ... 87

xvii

4.22 Frequency of Respondents Answer About Company performance ... 88

4.23 Frequency of Respondents Answer About Rating in a community ... 89

4.24 Frequency of Respondents Answer About Rating in a community ... 89

4.25 Frequency of Respondents Answer About truth worthiness based on referrals ... 90

4.26 Frequency of Respondents Answer About trusth wortiness based on referrals ... 90

4.27 Frequency of Respondents Answer About forard loking benefit... 91

4.28 Frequency of Respondents Answer Aboutforward loking benefit ... 91

4.29 Frequency of Respondents Answer About exchange integrity ... 92

4.30 Frequency of Respondents Answer About exchange integrity ... 93

4.31 Frequency of Respondents Answer About Degree of confidence ... 93

4.32 Frequency of Respondents Answer About degree of confidence ... 94

4.33 Frequency of Respondents Answer About goodwill and wilingness... 94

4.34 Frequency of Respondents Answer About goodwill and wiligness... 95

4.35 Frequency of Respondents Answer About feeling about satisfaction ... 95

4.36 Frequency of Respondents Answer About feeling about satisfaction ... 96

4.37 Frequency of Respondents Answer About feeling about certainty ... 96

4.38 Frequency of Respondents Answer About feeling about certainty ... 97

4.39 Frequency of Respondents Answer About customer retantion ... 97

4.40 Frequency of Respondents Answer About customer retantion ... 98

4.41 Frequency of Respondents Answer About repurchase intention ... 98

4.42 Frequency of Respondents Answer About repurchase intention ... 98

4.43 Frequency of Respondents Answer About staying intention ... 99

4.44 Frequency of Respondents Answer About staying intention ... 99

4.45 Frequency of Respondents Answer About enduring attitude ... 100

xviii

4.47 Frequency of Respondents Answer About desire to particular brand... 101

4.48 Frequency of Respondents Answer About desire to particular brand... 101

4.49 Frequency of Respondents Answer About desire to maintain membership ... 102

4.50 Frequency of Respondents Answer About desire to maintain membership ... 102

4.51 result calculation of correlation test ... 104

4.52 relationship between each variable ... 106

4.53 coefficeint determinant structure I ... 108

4.54 coefficeint determination structure II ... 109

4.55 F Test structure I ... 110

4.56 F Test Structure II ... 112

4.57 T Test structure II ... 113

4.58 Analysis influence PV and BR to CT ... 116

4.59 T Test for structure II ... 117

4.60 Analysis influence PV,BR,CT to CC ... 122

4.61 T Test after trimming ... 122

4.62 Analysis influence PV,CT to CC ... 123

4.63 Coefficient Determinant aftertrimming ... 123

4.64 Total effect of CPV, and BR ... 125

xix LIST OF PICTURE

2.1 Resarch model based on each variable definition ... 40

2.2 Research model based on previous researcher ... 41

2.3 Framework ... 42

4.1 Correlation value in the model ... 107

xx LIST OF ATTACHMENT

Attachment 1 Research Questionnair ... 141

Attachment 2 Raw data of validity and reliability test ... 147

Attachment 3 Raw data of path anaysis ... 149

Attachment 4 Frequency distribuion of the assesment respondents ... 150

Attachment 5 Result of validity and reliability test ... 153

1 CHAPTER I

INTRODUCTION

A. Research Background

Since 90s the development pattern of marketing in Indonesia experienced significant changes, especially in the big city. The original marketing pattern is characterized by a pattern of conventional face-to-face interaction and directly between buyer and seller, accompanied by bargaining activities, gradually turns into a pattern of self-service marketing. This period was marked by the emergence of the market – a grocery store and supermarket, on this pattern, the intensity of the interaction between buyers and seller diminishing compared to conventional patterns, price and quantity of goods on a permanent basis and not significantly possible the existence of bargaining between the buyer and the seller.

In early 2000s, increasingly develop of marketing pattern, after the emergence of patterns of utilizing electronic media marketing in the execution of transactions, such as online shopping. Typical of the pattern of marketing this is no physical meetings directly between the seller and the buyer, as well as the pattern of provision of products, all made through electronics, both between companies with the company, company with distributors, as well as the company with the consumer. The role of the service delivery, technology communications play an important role. Marketing pattern looks complicated but it has advantages compared to other marketing pattern.

2 Schijns (2003) describe that “online environments it is more complicated to establish a social connection between firms and customers due to the lack of

physical environment, social distance between companies and customers”

Another way of marketing as well as excess pattern described by Burke et al (2000) on cang and wang (2009 : 333), “online exhibits different characteristics from traditional shopping, online shopping can offer greater product selection,

accessibility without restriction of time and space”.

Nevertheless, the pattern of marketing also has disadvantages such as being delivered by Srinivasanet (2002) that : consumer can compare competing products and services with minimal expenditure of personal time or effort, which results in competitive business markets and lower brand loyalty.

This is possible because consumers can easily switch to other product options in a very short time without having to deal with the seller.

Husin (2011) revealed that online shopping has actually been introduced since 1979 in the United Kingdom, by Michael Aldrich of Redifon computers, long before there was the internet. Aldrich attributed the color TV with computer and telephone so that it can conduct transactions via a telephone sale, in accordance with item displayed on the TV screen, but with the internet then communication with the telephone starting replaceable.

Online shopping itself as a form of communication that did not require face-to-face between buyers and sellers, so buyers and sellers can reside in a place that is far apart, but can conduct transactions, and buyers can choose their own

3 desired product through the company website accessed through seller social media or blogs.

In Indonesia, reports of buying and selling online its increasing trend. Source of information from the CEO of PT Indonesia Payment Solution said that, total financial online transactions in 2010 and USD recorded 3.4 billion and year 2012 total financial online transactions are estimated reached USD 4.1 billion. This number will continue to increase along with the use of internet in Indonesia still continuing.

As the largest category on types of products in online transactions is gadgets and stuff, such as electronics, tablet PCs, smartphones, and computer spare parts. In second category are hobby goods or collectors, such as sports tools, games, and accessories as well as medicines and cosmetics.

On the pattern of this kind of marketing the trust level of the product, and manufacturers, it played an important role, in other words the "Trust" is crucial in marketing like this. Hasan Afzal (2010) said that “Consumer trust is a variable that generates consumers‟ commitment.” Particularly, high involvement situation in which effect is strong in assessment as a whole contentment.

Change of marketing patterns is currently developing in the direction of deeper relations between the growing companies with buyers through its products. Rust et al. (2009: 2) describe that “yet never before have companies had such powerful technologies for interacting directly with customers, collecting and mining information about them, and tailoring their offering accordingly”.

4 Currently, internet users are increasing rapidly, not only in the world, but also in Indonesia. The population of Indonesia in 2012 was 248 million inhabitants, of whom 110 million is estimated as middle-class class of internet users in Indonesia. In addition, there are a total of 23% of internet users or as many as 50 million people. As a percentage of this amount least come within South-East Asia, where the highest Singapore, 67% of the total population.

Despite having the lowest number of percentage as internet users in Southeast Asia, but Indonesia is considered a potential market of internet users, given the growth in GDP which reached 6.4% from 2011 to 2012, and credit card users who have reached the 30% of the total population in 2012. In addition to Indonesia's seventh-largest facebook users, Indonesia as 4th larger users in the world with $ 43 million, and also the 3rd twitter user in the world with a total of 11 active twitter user, 5 million inhabitants.

From 55 million internet users in indonesia, 71% of the internet user browsing internet via laptops or desktops, 24% through smartphones and the rest use other media. In addition to use PC, most Indonesian people access the internet home, which amounted to 63%, and the remaining 25% from office facilities, where the rest are using the internet at cafe, cybercafe or school. The results of the survey found, that Indonesian spends for more than 30 minutes per week for online. By which time, Indonesia spending time for online is above average time on line than Malaysia and the Philippines but far under the average of the citizens of Singapore and Vietnam. On line time, mostly used for searching via the search engines, then almost the same portion spent on social network and e-mail, the rest

5 utilize of internet is to search activity news, download music and games, on line transactions, education and careers, traveling, and only a few are utilizing the internet for blogs and games on line.

Based on survey results from AC Nielsen (2008) has more than 635 million people in the world ever make deals shopping online. The growth of shopping on line in whole over the world has increased 50% since the year 2001 to the 2008. In Indonesia, growth of transaction on line also increased 50% from year 2009 to 2010 (AC Nielsen Indonesia, 2010). Based on the data, 40% of internet users utilize the internet for online transactions, where 37% of them shopping for fashion goods, followed by booking on line for travel (including hotels and planes) followed by electronic items and books. Most of the shoppers on line, shopping via facebook and kaskus, while the rest are shopping through websites that offer goods for online like a nice store, amazon, e-bay, souvenirs, and pediabhineka, tokobagus, kaskus, etc.

Many payment methods are chosen by consumers in Indonesia by Bank transfer, followed by credit card and the rest option for Cash on Delivery. Where the average consumer spent Rp.500,000 for once shopping online.

Handy Irawan in Marketing Magazine March 2012 issued, reveal a phenomenon in shopping online that consumers in Indonesia have uniqueness attitude, behavior and decision in making process in evaluating and purchasing products. For example, in the field of culture, Indonesia has their own culture of people who are clearly much different compared to American culture. Indonesia has a Community norm and non verbal communication. For example, to interpret

6 the meaning of Indonesia Society of different colors, like green color more favorite. Our market has many products that are intended focus to the Muslims. The influence of the other is unique in terms of the "reference group". This is the part that really can't be compared to the American public. In this context, the opinion as a great leader influencer and the most important is Indonesian society as a group that has a strong level of socializing.

The impact of this powerful community level is great for marketing strategy, especially in the context of market penetration. One strategy that important is the communication strategy. The communication process that uses word of mouth and raises the level of trust to be effective that assist the market penetration of a brand.

Indrawan (2012) supported research results of Husni (2011) added, the various external factors above also affects the internal factors such as the process of the formation of perception, memory, motivation, attitude, lifestyle and behavioral processes eventually purchase. As an example, consumers of Indonesia are likely has short-term memory more dominant. This is a combination between educational level and social class average is still low, the culture and norms, as well as the influence of the existing systems in the community. It gives very big implications on strategy positioning of a product. Almost the same as the first character, then Indonesia's consumer also tend to not only have a plan, it makes the consumer spending patterns of Indonesia is relatively disorganized, the purchase process through impulse buying is relatively high.

7 With such unique characteristics, then this research was conducted to find out whether media users on line shopping is committed both to the products or services and to the providers of goods or commitment, as well as to find out what factors are associated with the level of consumer confidence on shopping on line. In addition to the explanation that has been put forward on the basis of consideration of why this research needs to be done, in order to understand the factors that affect consumer behavior is what the marketing patterns on line.

Some of the variables is assumed as interrelated variables for causality is a brand reputation, which is the starting point for the introduction of consumer product offerings, then consumers will be doing an assessment of the advantages (benefits) earned and costs incurred, this variable was called with perceived value. Both of these variables on the variables that affect a assume the level of commitment or loyalty of consumers against a product, where the causality between the independent variable i.e. reputation and perceived value to the consumer is influenced by how big a commitment low levels consumer confidence (consumer trust) of the products on offer. This research will enrich the efforts implies the dimensions of marketing that can be used as the object of an improvement in marketing on line.

B. Problem Formulation

Based on the identification of problems and restrictions as already mentioned above, it can be formulated research problems are:

8 1. Are there any significant effects between the Perceived Value of

consumer Trust in shopping online?

2. Are there any significant effects between the Brand Reputation of Consumer Trust in online shopping?

3. Are there any significant effects directly or indirectly between the Perceived Value to the Customer Commitment in shopping online? 4. Are there any significant effects directly or indirectly between the

Brand Reputation of the Customer Commitment in shopping online? 5. Are there any significant effects between Consumer Trust of the

customer's Commitment in shopping online?

C. Research Purposes

The goal ofthis research in particular is to find out:

1. To analyze the influence and role of Perceived Value to the Consumer Trust in online shopping

2. To analyze the influence and role of Brand Reputation of Consumer Trust in online shopping

3. To analyze the effect of directly or indirectly between the Perceived Value of Customer of Commitment in shopping online

4. To analyze the influence of directly and indirectly between Brand Reputation of Customer Commitment in shopping online

5. To analyze the influence and role of Consumer Trust of the customer's Commitment in shopping online

9 D. Benefit of Research

This research is expected to be useful in the developing aspects of science as well as to government aspects.

The Development Of Scienceaspects:

1. The development of the theory of Brand and customer behavior theory with applications online marketing

2. Application of the theory of perceived value on the conditions in Indonesia

3. The results of this research are expected to be useful for the development of the science of consumer behavior, especially linkages with variable reputation Brand, Brand trust and Brand Commitment.

The Development of governance aspects:

1. Being one of the producers as reference for designing an effective strategy for the development of online shopping is very potential in Indonesia.

2. Being a reference for marketing materials to create trust and a commitment to the customers of a products and services offered.

10 CHAPTER II

LITERATUR RIVEW

A. Variable Definition 1. Definition of Brand

Aaker and Keller (1990:112) in Afzal (2011:43), defines a brand as a ' name, logo, trademark and symbol '. Added by Argenti and Drunkenmiller (2004:75) in Pinson (2012: 5) brand is a name, term, sign, symbol or design, or a combination of them intended to identify the goods and services of one seller or groups of sellers and to differentiate them

from those of the competition.”

Attested in Afzal (2011:44) that, brand will creating a difference between generic products also expressed by Einwiller (2001). Furthermore, disclosed the importance of Brand in the company, by Rao (1994) in Matzler, et. Al. (2006: 76) that brand is an intangible asset of a company that has values. Which brand would reflect the spirit and soul of the Organization, further brand the product can tell the difference with competitor and can determine the position of the competitors have similar products, so eventually customers will feel as a part of specific brand product in Aaker(1991:102), so the arguments presented by Afzal, et. Al. (2011:44)in expressed the importance of brand for a company.

In the background of his article, Mohammed (2012: 113) said that brand has a very important role in helping customers in choose a product

11 or even the organization of a particular store. Brand give consideration associated between producers and consumers, and describes whether a product has fulfilled the expected by the consumer or not. Next, brand will show whether consumers are on a specific community or not.

Consumers are aware to the importance of a brand, the higher commitment of consumers of a brand. The famous brand will provide profits for these products and will differentiate it from similar products of a brand is not well known, so Mohammed quote from Keller (2003). Where though many brand on the market, but usually consumer will prefer for brand that they already known in advance. Furthermore, the famous brand will become attractive not only for consumers, but also encourage repeat purchases and will increase the price of the product, so it will give you an advantage for the company in the medium term and Foster Cadogan (2000: 343).

The shape of the brand is actually an assortment, 'may be a product, service, shops, famous personality, place, organization or idea ' so brand experts, Keller (2003b) says. More than just a brand name or logo, but rather to ' a set of expectation and perception that rose from the experience of the product or the organization ' Davis (2002: 503) added. Mohammed (2012: 113) concluded that tangible or intangible components of a brand can shape perceptions of customers over time and will shape the attitudes of customer‟s brand, so that it will give rise to a special form of the attachment between a brand and its customers. However, some other

12 studies mention that the role of the brand is not as important as with the role of pricing, packaging, and various technical characteristics inherent in such products as quoted from Serge (2000: 92).

Based on the sentence above, seen that brand is a very powerful asset for a company, so a good reputation will give positive expectations for customers and a bad reputation will give you an image that is not good from the side (Creed and Miles, 1996, in which Afzal, 2011: 46).

2. Consumer Behavior

The purpose of a marketer is to serve and satisfy the needs and desires of consumers. Marketers must know and understand how consumer behavior in fulfilling your wishes and needs.

According to Engel (2010: 22) consumer behavior is direct action to get consumption and spend the products and services, including the decision-making process. Kottler (2012) said that consumer behavior is the behavior of the end consumers, both individuals and household who buy products personal consumption. Whereas previously Mowen (2006) stated that consumer behavior is the study of unit purchases and Exchange processes involving the acquisition, and consumption of goods and services. Definition of consumer behavior is most often used is from Schiffman and Kanuk (2008) where consumer behavior is a process where a person in a seeks, give, use, evaluating, and acting after the consumption of services and ideas that are expected to satisfy the needs and desires.

13 Based on the description above, seen that consumer behavior related to decision-making to use and consumer goods and services in fulfilling needs and wants of a consumer.

Zeithaml and Bitner (2005) argues that the stages performed in decision-making means evaluating services and products offered, by doing: search source of information, a variety of alternative assessment products and services, purchase and use of products and services and the last one is the evaluation of post purchase.

With the development of e-commerce, since the end of the 1990s, media in shopping meeting growing spending needs and desires as well as through internet media. This is certainly have an effect on the behavior of consumer purchases, purchase behavior with the media on line have a difference with conventional media.

According to Li and Zhang (2002: 508) online purchase behavior refers to the process of purchasing goods and services products through the medium of the internet. It distinguishes with conventional shopping process is in shopping online, information retrieval and alternative products and services is done by looking at the information that is available through the medium of the internet, and how to purchase between buyer and seller is not met. The difference is the behavior of consumers who buy on line, just do a search if the information he felt in need of such items only, so information retrieval is not done every time.

14 The behavior of consumers in shopping online is influenced by various factors, in particular the recurrent desire to do shopping or even feel any attachment with the shop on line or purchased online brands, various studies say depending on the level of trust that such a result of consumer research Javernpaa, Tranctinsky and Vitale (2000: 45). Where the trust of consumers is very depending on the perceived value of online stores or products and services purchased online consumer and reputation earned from online stores as well as the goods and services he received, it is expressed by Quelch and Klein (1999: 72).

3. Internet, e-commerce and Online Shopping

The history of the Internet's existence comes from the United States Department of Defense Advanced Research Project Agency (ARPA) in 1963, which was originally a United States Government experiment NET created to connect the computer researcherto the centre in the Department of Defense.

Currently, Internet is a computer network that links computer networks with other networks worldwide (Hornby, 2000). Internet has become the world's largest information resource that contains a wide range of breakthrough in form of communicating, social interactions to business interactions. A wide range of buying and selling that was once done facto-face can now be done on line via the internet, which is called e-commerce.

15 E-commerce defined by Turaban (2002) is a concept that describes the process of purchase, sales and products changing, services and information through a computer network. E-commerce has three categories, B2C (Business to Customer) that is a transaction on line connected directly between the business person with customers individually. Then the category B2B (business to business), transactions on line between one or several companies with other businesses, and B2E (Business to Employee), the information and the service made up for the workers.

Husin (2011) tells us that, on line shopping was first introduced in the United Kingdom since 1979 by Michael Aldrich of Redifon computers, long before the internet exist. Aldrich attributed the color TV with computers and telephones, so to transact a sale over the phone, in accordance with item displayed on the TV screen.

Then with the uses of the internet, communication with the phone starts replaceable by online shopping form of transactions that do not require a face-to-face between buyers and sellers, so buyers and sellers can be in a separate place so much, but can make deals, and the buyer can choose the product through a vending company sites that are accessed through social media or blogs.

16 4. Definition of Brand Reputation

Halliday and Kuenzel (2010: ) in Pinson (2012: 3) outlines the notion of reputation as: the collective representation of multiple constituencies image of company, built up over time and based on company's identity programs, its performance and how constituencies have perceived its behavior. The unity of the community in view of the assessment form and behavior towards companies, which are arrayed in a long period of time, based on the programs and performance undertaken by the company.

Other notions of reputation put forward by (Bromley: 1993). Davies and Miles (1983) in Pinson (2012: 23) reputation are: Summary of the impressions or perceptions held by external stakeholders. Whole of the feeling and opinion submitted by stakeholders outside the company.

The reputation of a brand can be accessed from the consumer opinions, hopes and beliefs, so a Brand's Reputation is the consumer confidence that the brand is good and reliable. The reputation of a brand can be built through advertising and PR and of course the quality of the items added (Afzal, 2011: 46).

From above can be interpreted as meaning that the reputation of a company represented by the performance of which was created by the company which is reflected in the quality of the resulting products, as well as other performance are perceived by consumers. This means bring the better performance of the company improves the company's reputation

17 grew and vice versa, the ugly performance of the company's consumer increasingly negative perceptions which means reducing the company's reputation in the eyes of consumers.

Brand reputation is often associated as the credibility of the companies that are perceived by consumers (Herbig, 1993, Hyde, 2005 in Casalo, 2011: 201). Aside from the external side, the reputation of a brand can be seen from the internal side, where in his article, Pinson (2012: 25) reveals ' CEOs views reputation as an intangibles assets that provide a firm with greater confidence among stakeholders, better positioning in the marketplace and associated with superior performance compared to other brands in the same product category ' (deChertnatony, 1999) Ceos looked at the reputation as an invisible treasure that give confidence to stakeholders, a better position on the market, and can provide better performance than other brands of the same product.

Confirmed also mention by Dahlen, et. Al. (2009: 157) that brand reputation is an asset that will give the company an advantage, which will create goodwill from consumers based on experience from previous purchases. It is believed that the brand that has a good reputation will ease the process of purchase of the customer or consumer decision making in purchasing (Chun: 2005). In the contacts associated with the on line shopping or e-commerce, Josang, et. Al., 2007 in Cassalo, (2011: 201) explains, reputation can be consequences of a collective measure of

18 truthworthiness based on referrals or rating from members in a community.

The good reputation of the company in the eyes of consumers will give a positive impact to the company's performance as it allegedly by Chun (2005) a good brand reputation stimulates purchase by simplifying decision procedures for customers, a good brand reputation that will stimulate the purchasing easier, in other words a good reputation doesn't complicate the assessment of consumer products that it generates, because consumers feel confident would be quality of the product that results from companies that have a good reputation.

Correspondingly Deephouse (2000) and Siltaoja in Ker Tah Hsu (2011) tells us that the executives viewed the company's reputation as an important source that directs the company to consider corporate competitive advantage Executive reputation as the critical intangible resources that leads to competitor advantage. The explanation above was added by Herbig and Milewicz (1995) cited Dahlen, et. Al. (2009: 157) a backward-looking asset with forward looking, the goodwill benefit consumers ascribe to a brand based on their previous encounters with it. Reputation is an invisible asset but provide a real advantage, because consumers who either provide an assessment based on what they see and feel.

Brand reputation will Giving an advantage for a company's reputation, because the reputation is an indicator of competitive advantage

19 (competitive advantage) it means the good reputation of the company is a sign of the high competitive advantage possessed, and this will encourage positive assessment (perceived value) from consumers against firms.

Worcester (2001) in Riadh (2011: 120) says that the company's image can be defined as "the net result of the interaction of all experiences, impressions, beliefs, feelings and knowledge people have about the company", where the image can also be described as what the public views as a whole regarding the company.

Related to the company's image, reputation of the company by Tsung-Chi (2007: 134) is how the customer views of service providers, the extent to which they are honest and paying attention to the customer. Added, that previous studies have shown that with the increasingly sharp competition at the moment, consumers can easily switch to a company that has a better image, though customers were satisfied with the service providers who are currently wearing.

If the reputation associated with the other variables, so a lot of the literature are debating on how linking between service quality, satisfaction and image. Some says that the image is the antecedent of customer satisfaction, to be a moderator between service quality and satisfaction, but there are studies that indicate the opposite.

Gronross (2001), is one of the person who said that image was created from service quality and customer satisfaction. What is relayed by the Gronross is supported by research conducted by Kang and James

20 (2006), as well as research from Nguyen and LeBlanc (2005), on the service industry in South Korea. Even the research of Nguyen and LeBLanc has also been linked with the company's image among customer loyalty, customer loyalty was created from a good corporate image.

The latest research from Kassim and Souiden (2010) indicates that a good image of the company will develop and maintain good relationships with customers, can even increase market share and sales. Not only the company's image but in Tsung-Chi (2007: 135) it is said that reputation also has connections in maintaining customer relationships with the service provider.

5. Definition of Consumer Perceive Value

According to Kotler (2012), the value of the thought of the customer (Customer Perceived Value) is the difference between the evaluation of the prospects for all benefits and all the costs that are on offer and other alternatives considered. The evaluation process involves the exchange of what is acceptable to consumers (customer total value, service value, image value) and what was sacrificed (customer total cost, the monetary cost and non-monetary cost includes the cost of time, energy and mental). Seen from the side of the consumer, have a high value is a major factor in the transaction of buying and selling (Hollbrook: 1994).

Kottler (2010.) in Suliyanto (2010: 2) adds that the Customer Perceived Value can also be expectations from consumers of the products

21 or services that are expected to satisfy them. Added by the Ziethmal (1988) in Li (2010: 23) expressed approval that the Customer Perceived Value is the overall assessment of the value to products based on the perception that he received or upon what has been accepted by the consumer.

A little different from what is presented by Kottler, Ducoffe (1996) in Dahlen, et. Al. (2009: 156), said that the Perceived value of Customer as the value of the products or services received based on consumer advertising of such products or services.

In the end, as a result of research Li (2010: 20) which is in line with the theory of Lemon, et. Al. (2001), that the Customer Perceived Value holds the key role in the relationship between the purchaser and the company, which was created from a number of factors, namely ' quality, price and convenience '.Cronin (2000) associate the Customer Perceived Value on on line shopping system as whole consumer assessment of the quality and the sacrifice incurred in shopping; ' customer's overall judgment of quality and sacrifice to shop '.

Mac Dougal and Levesque (2000) in Suliyanto (2009; 2), said that the Perceived Customer Value will give a ' long-term benefit '. Because customer perceived value increase consumer confidence on a particular product, so it will encourage consumers to do the repetitive consumption on these products, or enhancing a sense of attachment to a product or brand that has perceived value is positive.

22 Various definitions of Customer Perceived Value cited by Li (2010; 30-33) from different sources, Anderson (1993) says that CPV is related to the monetary units that are associated with that product. Whereas Burtz and Goodstein (1996) says that CPV more leads to emotional shape that is formed between customers with a certain brand, because it considers the value of having a ' brand ' is more than other brands in the similar products. While Moliner (2007) says that the Perceived Value to the Customer more experience after consuming, where subjective judgment and therein including emotional reactions after consuming a product or service. Monroe (1990) says that the Customer Perceived Value is a tradeoff ' from ' quality or benefit which is received from a consumer product compared to the sacrifice of the issued price. The theory of Customer Perceived Value is most often used in the study are those of the Woodruff who says that Customer Perceived Value is the overall evaluation of product attributes, attributes and performance consequences received by the consumer after consuming the products and benefit that gets compared to other products.

Mohammed (2012; 116) in his research related to brand loyalty, many take the Customer Perceived Value of theory Anderson and Srinivasan (2003), said that if the perceived value is decreased, then the consumer will tend to not committed against the product, brand or company. Other researchers, Chiou (2003) says that Perceived Value is a

23 factor shaping the overall satisfaction is new on is finally will increase loyalty and commitment from the customer.

Lack of Perceive Value, which is quoted from research by Peterson (2004), Holbrook (1994), Petrick and Backman (2004) is in market research, measuring the Perceived Value is not an easy thing, where the theory of perceived value measurement itself is very less. Measurement of perceived value, into a debate about the perceived dimensions of value still takes place today, and requires more than just a marketing tool and statistics but there are psychometric science in it so it was revealed from the article and Jayanti Ghosh (1996).

It is also delivered by Dahlen (2009: 156) that raised customer perceived value in his research, where it is perceived that express their customer measurement value can be viewed from any side or from one side only, for example, perceived value received from the advertising of a product, can even be restricted from one media advertisements only. Because of the perception of the consumer receives an advertisement, may cause an emotional attitude of consumers to the product being advertised.

However, there has been a lot of studies that are related to Customer Perceived Value, such as the study of the Dagger, et al (2007) in the healthcare industry in Australia using the dimensions of service quality, interpersonal hers added quality, technical quality, environment quality and administrative quality. The results of the study showed a link between the level of consumer satisfaction with perceived value. Other

24 studies have been conducted by the Moliner (2007) on the tourism industry in Spain, where the dimensions of customer perceived value used is the functional value of service quality, price and professionalism then the dimensions of emotional value and social value dimension. Kim (2008) the adopting model research of Oliver (2007) conducted a study on e-commerce perceived value, dimensions used are perceived service quality, product quality and perceived perceived price fairness.

6. Definition of Consumer Trust

According to Morgan and Hunt (1999), the Trust is defined as the level of integrity, honesty and competence of one party against the other party, confidence on exchange partner's reliability and integrity.

Trust usually viewed as a critical element of being able to keep the relationship in the future, in this case the customer relationships with service providers. Then Morgan and Hunts (1994: 23) in Helen wong et al. (2012) gives the sense of out Trust when one party has confidence in an exchange partner is reliability and integrity, trust arises if someone feel confident against the other party in terms of reliabilities and integrity. Thus the trust arises if a person or a company able to show something good sake that can convince someone to be his ability and integrity.

In the sense, Adidam et al (2004) have almost the same thinking. In Helen wong (2012) explained that u.s. trust confidence conceptualized in an exchange partner's reliability and integrity ' new basing on personal

25 experience as an individual has his/her ad with the institution, the concept of trust as a belief of ability and integrity shown by co-workers based on someone's experience of the institutions or their home institution.

Next on his research, Chaudari and Holbrook (2001: 82), Morgan and Hunt (2004) back to affirm that Trust is a desire of most consumers to trust the ability of a particular brand to be able to deliver its performance in accordance in what it should be or according to what he had promised.

Trusts can also be interpreted as a goodwill and willingness "from consumers to take risks, to which goodwill is built from previous experience, and Trust is the expectation of a positive outcome, expressed by Deutsch (1979) in Afzal, et. Al. (2011: 45). While the willingness is the desire of consumers to face the risks, that may be associated with receipt of the brand that will be consumed, (lau and Lee, 1999, in the Suliyanto 2011: 2).

Emphasized by the Doney and Cannon (1992) says that consumer Trust is very relevant to the situation which is full of uncertainty where the larger brand differentiating in the similar products. Garbarino and Johnson (1999, 71) says that consumer trust can arise as a belief of the honesty and integrity of the seller, which may be reflected in the attitude of the personnel of the seller (Crosby, et. al, 1990).

In his research, Ching-Hsien, et. Al. (2002: 2) says that will happen because the trust's consumer's initiative themselves to further believe with what is offered by a brand. Where the trust would reduce the sense of

26 uncertainty, not only because consumers know that the brand deserves to be trusted, but reliable, secure and honest in expressing the contents of products that are sold, as quoted from Arnjun and Morris (2001). In fact added by Doney and Cannon (1997) 's consumer's Trust can be created and built through the consumer experience in doing such consumption activities, starting from the process of introduction to the brand.

In the end, it's consumer's trust of research results and Garbarino Johnson (1999: 72) can be viewed as a major component in the relationship (relationship) between the seller and the buyer (Berry, 1995, Dwyer, 1987, Morgan and Hunt, 1994).

However it should be noted also that's consumer's trust by Kabadayi and Alan (2012: 82) cited from Casalo (2007) can be viewed as a cognitive component, because it can be an encouragement to its purely emotional. Where the emotional impetus can arise from complacency after the previous purchases (Anderson and Narus, 1990, Afzal, 2011: 45)

Andreas Eggert (2002) distinguish perceived between value and customer satisfaction by saying that perceived value can be measured as the cognitive variable, while the customer satisfaction can be assessed as variable relating to affective; perceived value is ArcGIS measured a s a cognitive variable, customer satisfaction is ArcGIS measured as an affective variable, whereas Zeithaml (2008:18) saying that perceived value is consumer to the overall assessment of the usability of a product may be granted based on the perception of the ole what is accepted and what is

27 issued to obtain the product's consumer's Perceived value as the overall assessment of the utility of the product based on perceptions of what received and what is given.

While Helen Wong (2012) outlines that a trustworthy party is one that is considered reliable and has high level of integrity and the associated qualities, belief is a considered a high reliability and integrity with regard to quality.

Casalo et al. cited by Helen Wong (2007: 82) defines trust as cognitive component, which may induce emotional response, including cognition components insidereponses emotionally. As well as related to the experience of the brand, or a product like that is to say by the Doney and Cannon, (1997) in Helen Wong (2007: 82) that the Trust can be Created and developed by direct experiences of consumers via the brands, trust can be in shape by the direct experience of the customer. By doing it, so can be said that trust is related to someone's beliefs against reliabilities and integrity shown by a person or a product or company.

Afzal (2010) explains that Consumer trust is a variable that generates the consumers‟ commitment. Particularly high involvement situation In which its effect is strong in assessment as a whole contentment; Morgan and Hunt (1994) cited by Chaudhuri and Holbrook (2001: 82) gives the sense of trust as the willingness of the average consumer to rely on the ability of the brand to perform its stated function,

28 the desire for the average consumer to the ability shown by the brand or company.

Doney& Cannon, (1992), Ching-Hsien, et al (2002) in Chaudhuri and Holbrook (2001: 81) says that trust also relevant situation in uncertainty economic situation, when greater brands versus lesser differences among brands occur. The Trust also has to do with the situation of uncertainty, when well-known brands are dealing with other brands.

Benefit from the emergence of consumer confidence are reducing uncertainty, so that consumers can reduce spending and reduce the time to a sense of uncertainty as it is pointed out by (Arjun and Morris, 2001) in Kabadayi and Alan (2012: 2) The Trust can reduce economic uncertainty, because the customer not only knows that brand can be worth trusting, but also thing that dependable, safe and honest consumption scenario.

AndersoNorus (1990) and strengthen said that trust is feeling about satisfaction because of its ability to moderate risk in the buying process, meaning that if a person believing in a product then feeling satisfied should appear as a loss of severely screwing things will have risk of loss from the purchase of the item.

7. Definition of Customer Commitment

Some literature describes as a back and forth between commitment and loyalty, in this literature review writers will try to take both of these

29 notions would then be means that whether in order or sense impression in both of them that there may be differences.

Tim Jones (2007) explain that customer commitment has been attracting the attention since Morgan and Hunt gave a rise to his theories of relationship marketing, they say that customer commitment has garnered much interest since Morgan and Hunt's (1994) the seminal work on the trust's commitment theory of relationship marketing. Why customer commitment is very interesting because it turns attention to customer commitment with regard to various things as stated by Bansal et al (2004) in Tim Jones (2007); our customer commitment is a powerful predictor of various metric related to customer retention like switching/staying intention and repurchase intention; Our Customer commitment is a very influential predictor of a variety of matters related to customer loyalty as the intensity of the repurchase.

In order for our understanding of the customer's commitment more clearly, here the author pointed out some sense of customer commitments as follows:

Jeff Hess and John Story (2005: 334) uses the term to refer to the commitment form relationships with customers, beyond the end, confidence, attitude and behavior towards the brand and things related to the brand explains the sense of commitment as follows: We use the term "commitment" to refer to the ultimate relationship's consumer's disposition, encompassing beliefs, attitudes, and behaviors toward the

30 brand and their relationship with that brand. Furthermore Moorman et al (1992) in Tim Jones (2007) outlines that commitment, loosely defined as a desire to maintain a valued relationship; Commitment interpreted as the desire to maintain the relationship values.

Jeff Hess and John Story (2005: 319) stated that the Commitment is a fundamental and powerful concept that can only be fully understood and applied if decomposed into its major dimensions; commitment is a strong basic concept can be understood if in applying on various dimensions.

In the concept of buying resetting, originally Aaker (1991) says that the purchase is one of the factors that determine the levels of customer loyalty. But often, customers are buying in the absence of a certain feeling of such goods (Mown, 1999).

Customers who do not have a commitment to the brand or the online shop is customers who make a purchase on the anniversary of the same brand, but it has no emotional attachment to the brand (Hawkins, 2004) in Jones (2010: 17). Added, this is done because they only have a habit to buy in the store. So they make a purchase without having a feeling of attachment to the brand or store where they bought the item.

Customer's own actual Commitment can be defined from various sides, as stated by Jones (2010: 17) ' the commitment concept appearing in the fields of psychology, organizational behavior and marketing. These

31 definitions all reflect that commitment to a relationship involves both a

psychological state and a motivational phenomenon‟.

Customer's Commitment by Morman, et al (1992) in Garbarino and Johnson (1999: 71) is ' enduring desire to maintain valued relationship ' where customers always want to maintain a good relationship with the seller and hope that the relationship is worth. Ogba and further (2007: 4) said that the commitment of the Subscriber is ' An enduring attitude or desire for the particular brand. It is the degree to which customers as members of an organization are committed to an emotionally an organizations, its brand or product, hurricane status by continuous desire to maintain membership ', not only the desire to consume a particular brand, but also a level where customers feel as members of a producer organization are emotionally tied to the company, whether through a brand or product.

The importance of the customer's Commitment reflected in the Jones article, et. Al. (2010: 16) who says that customer commitment is powerful predictor to customer retention, like staying intention and repurchase intention, thus our customer commitment is a key to a marketing ' success, here it is revealed that the commitments from customers will give you the desire to make a purchase that is repeated so that it can successes the marketing strategy (Bansal, et. al, 2004, Fullerton, 2003, Venetis and Ghauri, 2004).

32 Meanwhile Grun et al. (2000) in Tim Jones (2007) shared a commitment within 3 (three) types, namely:

1. Affective Commitment as the degree to which a customer is psychologically bonded to the service organization on the basis of how favorable the consumer feels about the organization 2. Normative Commitment as the degree to which a customer is

psychologically bonded to the organization on the basis of his/her sense of obligation to the organization Normative Commitment as the degree to which a customer is psychologically bonded to the organization on the basis of his/her sense of obligation to the organization

3. Continuance commitment as the degree to which a customer is psychologically bonded to perceive cost associated with terminating the relationship

Caudhari and Holbrook (2001) quoted Oliver (1999:34) explain that A deeply held commitment to re-buy or re-patronize a preferred product/service consistently in the future, thereby causing repetitive the same brand - set purchasing, despite situational influences and marketing effort having the potential to cause switching behavior.

Aaker (1991), and Assael, (1998) in Chaudhuri and Holbrook (2001: 82) outlines that there are 2 different aspects of brand loyalty: behavioral; and attitudinal positions. Behavioral, consist of repeated

33 purchase of the brand, attitudinal positions, is a dispositional degree of commitment in terms of some unique value associated with the brand.

Commitment indicated loyal customer shows 3 characteristics below:

1. They spend more money in purchasing product or service of a company

2. They encourage others to purchase products or service of a company

3. They believe it is valuable to purchase products or service of accompany

This commitment will only arise if consumers put trust either of the products as well as against the companies; therefore the commitment is very closely related to the level of consumer confidence.

Egan (2004) in Santouridis (2010: 333) say that loyalty is the consumer behavior as measured from the number of repeat purchases (repeat purchase), "share of wallet" and purchase frequency in a certain period.

In Siddiqi (2011: 22), Singh and Sirdemuskh (2000) says that Customer Loyalty as the "market place currency of the twenty-first century". Ndubisi and Pfeifer (2005) provide an important entry that serves a loyal customer is much more lightweight five times compared to provide service to the customer. This statement shows that retain customers, or that have a loyal customer who is absolutely essential. The

34 same is expressed by Walsh (2005) that maintaining a loyal customer more profitable than looking for new customers.

Reicheld and Sasser (2003) in Riadh (2011: 112) say that loyalty is defined as a very strong commitment and depth, and empirically can increase the level of profitability of the company. This is in line with what was said by Oliver (1999), that loyalty is high in committeemen making a purchase over and over on the same goods or services on a consistent basis in the future and was deeply affected by the marketing activities undertaken by the company, whether to make the transition to another brand or not.

B. Previous Research

1. Brand Reputation with the Consumer’s Trust

Linked between Brand Reputation with the consumer's Trust, reflected in the research conducted by Donney and Cannon, (1997) in Cassalo, et. Al. (2011, 201) mentioned that ' the consumers who perceived the website who have a good reputation are more likely trust the website. Here is revealed the existence of a positive influence, in which consumers who are convinced good reputation of the company or brand, will be more trusted sites offering goods with those brands.

Research by Javernpaa, Tractinsky and Vitale (2000: 46) also says that consumer's Trust in online shopping, consumers ' perceptions of how the reputation of the online site as well as from the clarity of information

35 that make up the perception of the consumer. Where is the Javernpaa mentioned in his research that the Reputation of a company that sells a product on line that affect trust, i.e. the perception form the reputation of sites or stores that sell products and services on line, but not the reputation that leads to a product or brand.

Li and Zhang (2002: 509) that the consumer will have the confidence to shop online, in case of previous experience has a good experience, and consumers that shopping on line has a good reputation.

Afzal (2011: 46) reveals if a buyer assumes that brand as worthy, he also trusts that brand and make buying decisions. But if that brand does not meet customer needs and doesn‟t have good value then she may not trust it and won't buy it.

2. Customer (Perceived) Value with the Consumer’s Trust

Suliyanto (2012: 3) says that „customer perceived value plays important role in building costumer confidence, trust on brands.

Moorman (1993) who said the trust will increase if the perception of the value of the product in the eyes of customers. Or it can be said there is a positive relationship between the Perceived Value to the Consumers ' Trust.

Research by Javernpaa, Tractinsky and Vitale (2000: 46) also says that's consumer's Trust in online shoppingperceptions of how the attributes

36 are reflected from the online site as well as from the clarity of information that make up the perception of the consumer. Where is the Javernpaa mentioned in his research that the Perceived value that influences the trust emphasized on Perceived Size, i.e. the perception that form the site or store that sells products and services on line, not related to the product or brand.

3. Customer (Perceived) Value with the Customer Commitment Suliyanto (19: 4) says ' the Consumer perception of value has a positive influence to our customer commitment, (Chahal and Kumari, 2011). Resumed from the quote Li and Patric (2010), 'Quality and Values influence satisfaction which in turn affects on our customer commitment.

Supported by Li (2010: 30) where he wrote that 'Perceived value has a direct influence to customer's commitment'.

Lam Research (2004) Mohammed (2012; 117) found that Customer Perceived Value has the effect of either directly or indirectly (through satisfaction) of consumer behavior in the loyalty, including commitment to customers.

Jeff Hess and John Story( 2005:314) says thatCommitment is a fundamental and powerful concept that can only be fully understood and applied if decomposed into its major dimensions.

37 4. Brand Reputation with the Customer’s Commitment

In the beginning of the study results Anderson (1994) cited by Pinson (2012, 62) found that “Brand Reputation was found positively correlate with customer commitment”.

Past research conducted by Grounros (2005: 127) shows the results of that relationship and the high attachment between consumers with on line shopping, determined by the presence of a good reputation, from the shop on line, as well as of goods traded in the on line.

Ogba and further Than (2007: 5) cites the research of Lacey, et al (2006) “customer commitment should be measured from the point of view that customer can express emotional feelings and desire to maintain a relationship with a brand as a result of deeper intrinsic factors like the brand reputation from the customers perspective.”

5. Consumer’s trust with the Customer’s Commitment

Much research has revealed about how trust and commitment. Very famous is the study of Morgan and Hunt (1994) in Chauduri and Holbrrok (2001: 83), the results of his research found that ' brand trust leads to brand loyalty or commitment because exchange creates the trust relationship that is highly valued '.

Ching-Hsien, et al (2002, 6) of research results of Jian (2001), 'brand trust influence a customer's attitude for brand, and will have positive influenced for the commitment' and the research results of Arjun

38 and Morris (2001), 'research proof that brand trust has a positive effect to the commitment of customer's form'.

Previously, Garbarino and Johnson (1999: 73) in support of what has been done by Morgan and Hunt (1999): ' trust is precursor of commitment, because commitment involves potential vulnerability and sacrifice, it follows that people are unlikely to be commitment unless you already established'.

The research of Li (2010: 30) conducted on the basis of return research of Cacers and Paparoidamis (2007) revealed that from the results of his research found that ' trust has significantly effect the commitment '.

The same was done by Casalo, et. Al. (2011: 202) taking the hypothesis of the research results Farelly and Quester, (2003): greater levels of trust improve the level of commitment to a given relationship, and also results of Bauer (2002) related with the online shopping, which States ' Trust has a positive influence on its committed to the relationship with the website'.

C. Framework

Brand is the identity of a company who can tell the difference with other companies. The identity that will be assessed by an external party in this case the users of the products resulting from such companies, either individual consumers, company or corporate. Brand is the identity of a company who can tell the difference with other companies. The identity

39 that will be assessed by an external party in this case the users of the products resulting from such companies, either individual consumers, company or corporate.

A positive or negative assessment will depend on the extent to which companies give more value compared to the costs incurred by the users of the resulting products of the company. This is called the evaluation with the customer perceived value. A positive perceived value depends on the extent to which the brand shows its reputation in this case conformity between the quality product produced than sacrifice (price, time, and effort) are issued to obtain these products. Likewise negative assessments will appear if the brand does not represent the company to meet the needs and wants as well as expectation from the user.

The reputation of the brand is rated positive will generate trust among users (customers) to make deals or recurring giving a positive assessment by encouraging other users to make a purchase.

Confidence will also give a positive impact to the level of commitment (Commitment) users of the products and services produced goods represented by brand (brand), a commitment is characterized by several things, including the recurring purchases, promotion of other users as well as a high loyalty of the use of the brand.

If the connection between the variable pattern is described based on understanding of each variable so it can be seen the research model as follows :

40

Image 2.1

Research model based on Each Variable definition

Various earlier researches that illustrate the linkages between variables based on the results of previous findings as outlined above can be described in a research model as follows:

Customer (Perceived)

Value

Customer’s Commitment

Brand Reputation

Consumer’s Trust Perfor manc Intani ble Value Percei ved Integrit y and Good will Norm ative Affect ive Ching-Hsien, et.al (2002), Pinson (2012) Mohammad, (2012), Donney &Connond (1997), Jarvenpa &Tractinsky Gustafsson, Johnson dan Roos (2005) Walter, et.al (2002, 6) berdasarkan Gundlach, Achrol dan Mentzer Ching-Hsien, et.al (2002), Mohamm ad, (2012),

41

Image 2.2

Research Model based on previous researchers

C Cuussttoommeerr (

(PPeerrcceeiivveedd)) V Vaalluuee

C Cuussttoommeer’r’ss C

Coommmmiittmmeenntt

B Brraanndd R Reeppuuttaattiioonn

C

Coonnssuummeerr’’ss T Trruusstt

Li and Patric (2010), Eukuru and Matt (2008)

Morgan&Hunt (1994), Jian(2001), Farrelly&Cuester(2003)

Anderson (1994), Lacey (2006), Caurana dan Sirdeshmu kh, et.al (2002), Carver and Scheier Donney&C anon(2007 ), Afzal, et.al(2011)

42 Based on both models above can be composed of an image frame of research Linkages Grand Theory, Middle Range Theory, and Applied Theory as seen in the following image:

Image 2.3 Framework

CONSUMER TRUST ( )

 Exchange integrity

 Degree of confidence

 Goodwill &Willingness

 Feeling about satisfaction

 Feeling about certainty

COSTUMER

COMMITMENT ( )

 Customer retention

 Repurchase intention

 Staying intention

 Enduring attitude

 Desire to particular brand

 Desire to maintain membership

PERCEIVED VALUE ( )

 Total value

 Total cost

 Judgment quality

 Monetary value

 Trade off benefit and cost

 Service quality

 Professionalism

 Price fairness

BRAND REPUTATION ( )

 Company performance

 Rating in a community

 Consequence of a collective measure of truth worthiness based on referrals

Attachment 5 : Result of Validity and Reliability Test

NO. OF

QUESTION

TABLE

VALUE

CALCULATED

VALUE

STATUS

1

0,361

0,707

Valid

2

0,361

0,654

Valid

3

0,361

0,693

Valid

4

0,361

0,694

Valid

5

0,361

0,635

Valid

6

0,361

0,740

Valid

7

0,361

0,349

Not

8

0,361

0,284

Not

9

0,361

0,654

Valid

10

0,361

0,669

Valid

11

0,361

0,689

Valid

12

0,361

0,621

Valid

13

0,361

0,520

Valid

14

0,361

0,461

Valid

15

0,361

0,713

Valid

16

0,361

0,739

Valid

17

0,361

0,656

Valid

18

0,361

0,528

Valid

19

0,361

0,379

Valid

20

0,361

0,202

Not

21

0,361

0,444

Valid

176

23

0,361

0,538

Valid

24

0,361

0,631

Valid

25

0,361

0,732

Valid

26

0,361

0,667

Valid

27

0,361

0,801

Valid

28

0,361

0,738

Valid

29

0,361

0,674

Valid

30

0,361

0,783

Valid

31

0,361

0,857

Valid

32

0,361

0,749

Valid

33

0,361

0,627

Valid

34

0,361

0,675

Valid

35

0,361

0,754

Valid

36

0,361

0,694

Valid

37

0,361

0,659

Valid

38

0,361

0,716

Valid

39

0,361

0,776

Valid

40

0,361

0,587

Valid

41

0,361

0,659

Valid

42

0,361

0,606

Valid

43

0,361

0,536

Valid

44

0,361

0,465

Valid

45

0,361

0,635

Valid

Attachment 6 : Output SPSS

Correlations

Correlations

perceived value

brand image

trust customer

commitmen t

perceived value

Pearson Correlation 1 .518** .533** .560**

Sig. (2-tailed) .000 .000 .000

N 60 60 60 60

brand image

Pearson Correlation .518** 1 .479** .413**

Sig. (2-tailed) .000 .000 .001

N 60 60 60 60

Trust

Pearson Correlation .533** .479** 1 .666**

Sig. (2-tailed) .000 .000 .000

N 60 60 60 60

customer commitment

Pearson Correlation .560** .413** .666** 1

Sig. (2-tailed) .000 .001 .000

N 60 60 60 60

**. Correlation is significant at the 0.01 level (2-tailed).

Structure I

Regression

Variables Entered/Removeda

Model Variables

Entered

Variables Removed

Method

1

brand image, perceived valueb

. Enter

a. Dependent Variable: trust b. All requested variables entered.

178

Model Summary

Model R R Square Adjusted R

Square

Std. Error of the Estimate

1 .583a .340 .317 .75560

a. Predictors: (Constant), brand image, perceived value

ANOVAa

Model Sum of

Squares

df Mean

Square

F Sig.

1

Regression 16.781 2 8.391 14.696 .000b

Residual 32.543 57 .571

Total 49.324 59

a. Dependent Variable: trust

b. Predictors: (Constant), brand image, perceived value

Coefficientsa

Model Unstandardized Coefficients Standardized

Coefficients

t Sig.

B Std. Error Beta

1

(Constant) 1.954 .299 6.527 .000

perceived value .412 .133 .390 3.098 .003

brand image .284 .129 .277 2.199 .032

Structure II

Regression

Variables Entered/Removeda

Model Variables

Entered

Variables Removed

Method

1

trust, brand image, perceived valueb

. Enter

a. Dependent Variable: customer commitment b. All requested variables entered.

Model Summary

Model R R Square Adjusted R

Square

Std. Error of the Estimate

1 .709a .502 .476 .62923

a. Predictors: (Constant), trust, brand image, perceived value

ANOVAa

Model Sum of

Squares

df Mean

Square

F Sig.

1

Regression 22.388 3 7.463 18.849 .000b

Residual 22.172 56 .396

Total 44.560 59

a. Dependent Variable: customer commitment

b. Predictors: (Constant), trust, brand image, perceived value

Coefficientsa

Model Unstandardized Coefficients Standardized

Coefficients

t Sig.

B Std. Error Beta

1

(Constant) -.294 .330 -.892 .376

perceived value .278 .120 .277 2.322 .024

brand image .027 .112 .027 .239 .812

Trust .480 .110 .505 4.352 .000

180

Structure II After Trimming

Regression

Variables Entered/Removeda

Model Variables

Entered

Variables Removed

Method

1

trust, perceived valueb

. Enter

a. Dependent Variable: customer commitment b. All requested variables entered.

Model Summary

Model R R Square Adjusted R

Square

Std. Error of the Estimate

1 .708a .502 .484 .62400

a. Predictors: (Constant), trust, perceived value

ANOVAa

Model Sum of

Squares

df Mean

Square

F Sig.

1

Regression 22.365 2 11.183 28.720 .000b

Residual 22.194 57 .389

Total 44.560 59

a. Dependent Variable: customer commitment b. Predictors: (Constant), trust, perceived value

Coefficientsa

Model Unstandardized Coefficients Standardized

Coefficients

t Sig.

B Std. Error Beta

1

(Constant) -.285 .324 -.877 .384

perceived value .288 .111 .287 2.595 .012

trust .487 .105 .513 4.641 .000