INTRODUCTION THE EFFECTS OF MODERN CONVENIENCE STORE ATTRIBUTES TO BUY TOWARDS CUSTOMER’S LOYALTY (CASE OF INDOMARET).

CHAPTER I
INTRODUCTION

groound
1.1 Backgr
Background
Modern convenience
con
onveeniencee sstore
torre orr ooften
to
f en ccalled
ft
alle
al
ledd th
tthee c-store is a small store
that provides
pro
ovi
vide

dess daily need
edss with
i safe and comfortable
co
omf
mfor
o table stor
oree fa
facilities. Th
T
is kind
needs
store
This
oof tthe
he sstore
tore sstarts
tarts to be popular in Indonesia especially
ta
especia

iall
l y am
mon
ongg ad
aadolescents.
olesccents.
among
Th is caused by the increasing number of the needss thatt fo
This
foll
llows th
the
follows
iim
prroved number of modern convenience store. Although th
he products
prod
oduc
ucts andd
improved

the
ser
rvices in a modern convenience storeare not as complete
te ass in the
he
services
su
upermarket or hypermarket, its existence cannot just be unde
erestimaatedd.
supermarket
underestimated.
M
odern convenience store has become a part of the communitiess wh
when the
heyy
Modern
they
need daily goods especiall
ly wh
when

e the
heir
ir ttime
ime is limited.
especially
their
One of the benefits from this industry is the industryy can
an be
be
describedas
tough
industry
Even
though
situation
de
desc
scri
ribe
beda

dass th
thee to
toug
ughh in
indu
dust
stry
ry indeed.
indee
eed.
d. E
venn th
ve
thou
ough
gh tthe
he eeconomic
cono
co
nomi

micc si
situ
tuaation
looks
look
okss difficult
diff
di
ffic
icul
ult for
for recent years,
yea
ears, it does notaffect
notaffect the
the purchasing
purrch
chas
asin
ingg power

powe
po
wer of this
adolescents
sector. Furthermore, the adol
lescents in
n Indonesia are likely to have a practical
theyemphasize
shopping pattern and theyem
mphasize on
on convenience facilities.On the other
are
side of this localized experiences
experiennces ar
re convenience store incorporating other
own
elements to transcend their ow
wn brand. That means the new world of
convenience often requires a quick service of transportation and electricity
payment inside the store along with a branded banking ATM. It leads to the

shopping habits at the modern convenience store where this type of
1

storeclearly provides a range of items used in daily necessities with a good
level of facilities.
mention
theywilling
Some adolescentss m
ention thatt th
they
eywilling to pay more for goods in
amodern convenience
conven
eniience store instead of buying in a regular
regu
re
g lar convenience store.
by their high
higher
level

trust-wothy
towards
This is caused
ca
gherr le
leve
el of tru
ust
s -wothy toward
ds the reputation of
modern
mo
odern

convenience
conven
nie
ienc
ncee

store

rather

thantrust-worthy
th
than
antr
trus
ustt-w
worthy

towards
towar
ards

regular

convenience
store.

Moreover,
comfortable.
conven
enie
ienc
ncee store
e. M
oreover, it is safer an
and andd mo
more
r comf
mfortable.
Convenience
unique
characteristics
C
onve
on
vennience
ce stores have to localize and adapt to the un
niq
ique cha
hara
ract
cter
e isticcs of
their
themselves
and
th
the
eir co
communities, they will also have to attach themselve
es to nnational
atio
at
ional an
nd
global
glob
bal brands that people from every neighborhood have come
me to expect
expe
ex
pect
c as
part
pa
art of their dining and shopping experience.The major reasonn for m
modern
oder
ernn
convenience
co
onvenience store is needed by people because the time consump
consumption
ption pattern
pa n
changes.
chan
ch
a ges. It mea
means
ans tthere
here
he
re aare
r more peop
re
people
ple nneeds
eeds
ee
ds eeverything
v rything in a qquick
ve
uick ways
ways
now. Moreover, it becomes an im
impo
important
portant issue for modern conveniencee store
sto
torre
to serve their customer nicely. The customer’s loyalty is extreme
extremely
ely nec
necessary
eces
essa
sary
and ne
need
ed
d tto
o be ffulfilled
ulfi
ul
filled iin
n case
case ooff llong
ong tterm
erm
er
m existence
e isttence ffor
ex
or a modern
mo
convenience
conv
co
n eniencce st
store itself.
In addition, the reason
reasoon for adole
adolescents
escents that made them do repetition to
come to modern conveniencee stores iss that they can sit there for a long time
because the c-store provides seats
seeats aand
nd tables like in cafes. Automatically, it
makes adolescents buy some goo
goods
o ds or using the services in the modern
convenience store while hanging out with their friends by means to just relax
on that spot which has been provided with complete facilities as well as the

2

Wi-Fi connection. It is realized to be the force for the new lifestyle of
adolescents. In Indonesia, some modernconvenience stores operatesfor 24
areIndomaretPoint
hours. To name some ar
areI
eIndomaretPoin
d
intt and Circle K. Some convenience
stores also impose
impo
pose a 24-hour service, so that the cu
customer can reach them
whenever
course,
whenev
ver they need. Of cou
ursse,
e tthis
hiis wi
will
ll bee very different ffrom
rom the services at
ro
convenience
thee regular conven
enie
ienc
nce stores.
From
Fr
om year to year, the growth of mod
modern
oder
ern convenience
conv
nven
enie
ienc
n e store
storre seems
higher
high
hi
gher
er

tha
than
han

regular

one.

The

problem

is

that
that

they
they

provide
proovi
v de

ppromisinginvestment;
romissin
inginvestment; flexible location and the franchisee grow
growth
wth can bbee
developed
deve
eloped by everyone. However, there are few people perceive
perceived
ed th
that
hat mo
modern
convenience
co
onvenience store brings negative impacts. Some owners of regular
regula
lar
co
onvenience stores that sell daily needs also feel threatened for th
he exis
stence
convenience
the
existence
them
of modern convenience
conveeni
nien
ence
ce sstore.
tore
to
r . Most of th
hem have
have a fear that their goods
goods could
cou
ould
ld
not sell well because customerr ttend
en
nd to move to modern convenience st
sto
oree.
store.
Based on that issue, the government must have discourse to limitt the
Ba
the nnumber
umbber
um
modern
convenience
stores
Indonesia.
Nevertheless
of m
odern
d
co
onv
nven
enie
ience st
stor
ores
es iin
n In
Ind
donesia
ia. N
everth
thelless it ddoes
oess not
oe
discourage
especially
the
buying
disc
di
scourage
ge customer
customer especial
ally
l for th
he adolescents to sstop
topp buyi
to
ying
ng the daily
convenience
needs at a modern convenien
nce store.
Based on the explan
explanation
nation above,
aboove, the researcherinterested to do a
research.It is about how customer
custom
mer eespecially
specially adolescents will perceive the
existence of modern convenience store.
s ore The research setswith the title of:“The
st
Effects of Modern Convenience Store Attributes to Buytowards
Customer’s Loyalty (Case of Indomaret).”

3

1.2 Research Problem
Based on the background, the writer tries to identify some
up as follows::
problems that may risee up
fac
acto
tors are formed by the attributes fr
from Indomaret based on
a. What factors
cu
perceptio
on?
customers’
perception?
b.
b. Do the factors
fact
fa
ctor
orss of attributes ffrom
fromIndomaret
mIn
Indo
doma
maret positively
ly affect the
customer’s
cust
cu
s om
omer’s lo
loy
loyalty?
yalty?
c.
c D
Do
o m
male
ale and female will perceive the attribu
attributes
butes fr
from
om IIndomaret
n om
nd
maret
differently?
differently?
om Indomaret
Ind
ndom
omaret
d. Do male and female will purchasing the products fro
from
differently?
Indom
mareet
e. Do male and female will using the services from Indomaret
differently?
y?
ll perceived
perc
rcei
eived the customer’s loyalty of Indomaret
Indooma
mare
ret
f. Do male and female wil
will
differently?

1.3
1 3 Research
1.
R search
Re
ch Objectives
Objectives
Based on the problem
formulation
m formulati
ion above, the objectives that need to
be reached are:
a. To know what are the fac
factors
ctorss that can be formed by the attributes from
Indomaret based on customers’
perception.
custome
m rs’ perception
b. To know how variables on attributes fromIndomaret positively affect
the customer’s loyalty.

4

c. To find outthat the male and female will perceive the attributes from
Indomaret differently.
d. To find out that the
the male and
d female
fema
fe
m le will purchasing the products
fromIndomaret
fromIndo
dom
maret differently.
e. To find out that the
the services
thee male
mal
alee and
an female will using
us
fromIndomaret
fromIndoma
mare
rett differently.
f. To ffind
customer’s
ind outt th
in
that the male and female wi
will perceived
perce
ceiv
ived
ed the cus
sto
t mer’s
loyalty
loyalt
lty of Indomaret differently.

1.4
1.4 Research
Research Benefits
1.4.1 Benefit for readers
n cons
sumeer
This reserach is done to know the reasons and effects oon
consumer
while they perceive
phenomenon
which
per
erce
ceiv
ivee the
the modern convenience
connve
veni
nien
ence
ce store phenom
men
enon whi
hich
ch
les
esce
c nt
nts who stay in a boarding house.
usually happen among adol
adolescents

1.4.2
1.44.22 Benefit
Beneefi
fitt for
fo researcher
resear
arch
cher
er
This
Th
is research can be
b a medi
media
dia to add some kn
know
knowledge
owledge
ge in the theory
y
applied whichare already
y received ffrom
rom some lectures.Another benefit is
to reveal how far the ap
appropriateness
ppr
p opriaten
ness between existing theory and the
reality is.

5

1.4.3

Benefit for further researcher
This research is expected to be used as the material for further

researchers who want
nt to
to do a research
resea
earc
rch related to the attributes from
conveniencee st
store that may affectadolescents’ willingness
w llingness and loyalty to
wi
purcha
hase products and using
usin
us
ng services
s rv
se
rvic
ices
es inn a modern convenience
conven
enience store.
purchase

1.5 Syst
stem
emat
atic of Wr
Writ
iting
Systematic
Writing
1.
1.5.
5.11 Ch
Chapter 1: Introduction
1.5.1
In this chapter, the researcher tries to describe
be thee re
reason ooff
benefits
ch
choosing
the topics, research problem, objectives and be
benefi
fits
ts of the
research, also systematics of writing.

1.5.2 Chapter
Chap
apte
terr 2: Literature
Lit
iter
erature Review
w
rese
s ar
arch
cher tries to describe the framework
frameworrk an
andd
In this chapter, the re
researcher
theories based on the problem that can be used in this research
researc
rchh related
reela
lateed to
the
th
he ttopics.
opics.
i

1.5.3 Chapter 3: Research
Resea
arch Methodology
Methoodology
researcher
In this chapter, thee research
her tries to describe about the research
the
instrument
methodology, measuring th
he inst
strument testing, and analysis tools to be
collection.
used in the data collection

6

1.5.4 Chapter 4: Data Analysis
This chapter provides someanalyses of the calculation and
components and
nd ttheir
heir support. Later, the calculation
construction of major co
be interpreted and adjusted to the topi
pic.
c
results will be
topic.

1.5.5 Chapte
terr 5: Conclusions and Recommendations
Rec
ecom
omme
men
ndations
1.5.5
Chapter
Th chapter
chaapt
pter is a last chapter for the
the whole
w ole chapters
wh
chap
ch
apte
ters cont
tai
a ned in
This
contained
this final
al writing. In this chapter, there are also the con
oncl
clus
usions and
this
conclusions
sugg
ggestions from the topic which will be referred
referrre
r d for
for furthe
her
suggestions
further
de
developments.

7