INFLUENCE OF SERVICE QUALITY, SALES PROMOTION AND CUSTOMER SATISFACTION TOWARD CUSTOMER LOYALTY (Study Case on Carrefour Lebak Bulus)

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INFLUENCE OF SERVICE QUALITY, SALES PROMOTION

AND CUSTOMER SATISFACTION TOWARD CUSTOMER

LOYALTY

(Study Case on Carrefour Lebak Bulus)

Undergraduate Thesis

Submitted to Faculty of Economics and Business in Partial Requirements for Acquiring the Bachelor degree of Economics

By: DITA NAHLATI

1112081100004

MANAGEMENT DEPARTMENT INTERNATIONAL PROGRAM

FACULTY OF ECONOMIC AND BUSINESS

SYARIF HIDAYATULLAH STATE ISLAMIC UNIVERSITY JAKARTA

vi ABSTRACT

The purpose of this study was to analyze the influence of service quality, sales promotion and customer satisfaction toward customer loyalty on Carrefour Lebak Bulus. This type of research is quantitative. The data source of this research is primary data derived from sample of the customers who shopped at Carrefour Lebak Bulus. The data collection is done by distributing questionnaires to 100 respondents. The selected sampling was purposive sampling technique. The analytical method used in this research is multiple linear regression analysis. The results showed that: (1) service quality significantly influencing customer loyalty on Carrefour Lebak Bulus (2) sales promotion significantly influences customer loyalty on Carrefour Lebak Bulus, (3) customer satisfaction influences customer loyalty on Carrefour Lebak Bulus, and (4) service quality, sales promotion and customer satisfaction significantly influence consumers loyalty on Carrefour Lebak Bulus.

Keywords: Service Quality, Sales Promotion, Customer Satisfaction, Customer Loyalty

vii ABSTRAK

Tujuan dari penelitian ini adalah untuk menganalisis pengaruh kualitas pelayanan, promosi penjualan dan kepuasan pelanggan terhadap loyalitas pelanggan pada Carrefour Lebak Bulus. Jenis penelitian ini adalah kuantitatif. Sumber data penelitian ini merupakan data primer yang berasal dari sampel yaitu pelanggan yang berbelanja di Carrefour Lebak Bulus. Pengumpulan data dilakukan dengan menyebarkan kuesioner kepada 100 responden. Pengambilan sampel yang dipilih adalah teknik purposive sampling. Metode analisis yang digunakan dalam penelitian ini adalah analisis regresi linier berganda. Hasil penelitian menunjukan bahwa: (1) kualitas layanan berpengaruh signifikan terhadap loyalitas pelanggan pada Carrefour Lebak Bulus, (2) promosi penjualan berpengaruh secara signifikan terhadap loyalitas pelanggan pada Carrefour Lebak Bulus, (3) kepuasan pelanggan mempengaruhi loyalitas pelanggan pada Carrefour Lebak Bulus, dan (4) kualitas layanan, promosi penjualan dan kepuasan pelanggan berpengaruh signifikan terhadap loyalitas konsumen pada Carrefour Lebak Bulus.

Kata Kunci: Kualitas Layanan, Promosi Penjualan, Kepuasan Pelanggan, Loyalitas Pelanggan

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FOREWORD

First and Foremost praise is to ALLAH, the Almighty, the greatest of all, on whom ultimately we depend for sustenance and guidance. I would like to thank Almighty Allah for giving me opportunity, determination and strength to do my research. His continuous grace and mercy was with me throughout my life and ever more during the tenure of my research. I would like to thank and express my deep and sincere gratitude to the people who have helped me in the preparation of a thesis:

1. I would especially like to thank my amazing family for the love, support, and constant encouragement I have gotten over the years. In particular, I would like to thank my Mama, Papa, Uni Nabila and Zahra. I undoubtedly could not have done this without you all, I always Love you all!!

2. Mr. Dr. M. Arief Mufraini, Lc., MSi as Dean of the Faculty of Economics and Business of UIN Syarif Hidayatullah Jakarta.

3. MS Dr. Ir. Muniaty Aisyah, MM as my supervisor, thank you so much for your recommendation, advice and knowledge during guided to finish my thesis.

4. All the lecturers and employees of the faculty of the faculty of economics and business of UIN Syarif Hidayatullah over all the outpouring of knowledge, assistance and services.

5. To my best friends Diah Siti Utami and Rama Febriyanti thank you for listening, offering me advice, and supporting me through this entire process. Thank you girls for being with me in ups and downs of life during last 4 years. I will never ever forget every time with you both. You are amazing girls!! A special thanks to my best partner Ridhoanta Lubis, you were fundamental in supporting me during these stressful and difficult moments. For your motivation, patience, encouragement, and for your love during these years.

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for recommendation, time, and teach me. Success for all of you guys. 7. To my classmate in International Management and Accounting 2012, Priyo,

Azka, Radit, Fajar, Akang, Eja, Eva, Nadila, Syafiq and Faiz I have miss the moment we spent together and all the memories ever undertaken when it became a class mate.

8. Finally, the author expect for any critics and suggestion that could improve the content of this thesis, the author hopes to that the thought provoking contributions can give benefit to the reader , hopefully this thesis could be worthwhile for all of us. Amin

Jakarta, September 7th ₂₀₁₆

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LIST OF CONTAINS

CERTIFICATION OF THESIS SHEET ... ii

CERTIFICATION OF COMPREHENSIVE EXAM SHEET ... iii

CERTIFICATION OF THESIS EXAM SHEET... iv

STATEMENT OF AUTHENTICITY SCIENTIFIC WORK ... v

CURICULUM VITAE ... vi

ABSTRACT ... vii

ABSTRACT ... viii

FOREWORD ... ix

LIST OF CONTENT ... xi

LIST OF TABLE ... xv

LIST OF FIGURE ... xix

LIST OF ATTACHMENT ... xx

CHAPTER I INTRODUCTION ... 1

A. Background ... 1

B. Research Problem ... 10

C. Research Objective ... 10

D. Research Advantages ... 11

CHAPTER II LITERTURE REVIEW ... 12

A. Service ... 12

1. Definition of Service ... 12

B. Service Quality ... 13

1. Definition of Service Quality ... 13

2. Measurement of Service Quality ... 15

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1. Definition of Sales Promotion ... 17

2. Measurement of Sales Promotion ... 18

D. Customer Satisfaction ... 23

1. Definition of Customer Satisfaction ... 23

2. Measurement of Customer Satisfaction ... 24

E. Customer Loyalty………...……….28

1. Definition of Customer Loyalty ... 28

2. Measurement of Customer Loyalty ... 29

F. Preview Research ... 30

G. Theoretical Framework ... 35

H. Hypothesis ... 36

CHAPTER III RESEARCH METHODOLOGY ... 37

A. Scope of Research ... 37

B. Determination Sample Method ... 37

1. Population ... 37

2. Sample ... 38

C. Data Collection Technique ... 39

1. Primary Data ... 39

2. Secondary Data ... 42

D. Method of Data Analysis ... 43

1. Validity Test ... 43

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E. Classic Assumption Test ... 44

1. Normality Test ... 44

2. Multicollinearity Test ... 46

3. Heteroskedasticity Test ... 48

F. Hypothesis Test ... 49

1. t-Test ... 49

2. f-Test ... 50

G. Multiple Linier Regression ... 51

1. Similarity Multiple Linier Regression ... 51

2. Coefficient of Determination (R2) ... 51

H. Variable Operational Research ... 53

CHAPTER IV RESULT AND ANALYSIS ... 57

A. General Overview Research Objective ... 57

1. History of Carrefour ... 57

2. Vision and Mission ... 58

3. Commitment of Carrefour ... 60

4. Carrefour Shopping Card ... 63

5. Organization Structure Carrefour ... 63

B. Discussion of Results Questionnaire ... 68

1. Validity and Reliability Test Result ... 68

2. Descriptive Respondents ... 72

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b. Respondents by Age ... 73

c. Respondents by Education ... 74

d. Respondents by Income ... 75

C. Descriptive Analysis ... 75

1. Descriptive Service Quality (X1) ... 76

2. Descriptive Sales Promotion (X2) ... 86

3. Descriptive Customer Satisfaction (X3) ... 92

4. Descriptive Customer Loyalty (Y) ... 98

D. Classical Assumption Test Results ... 102

1. Data Normality Test Results ... 102

2. Test Results Multicollinearity ... 105

3. Test Results Heteroskedasticity ... 106

E. Hypothesis Test Results ... 108

1. Partial Test Result Significant (t test) ... 108

2. Simultaneous Test Result Significant (F test) ... 111

F. Result of Multiple Linear Regression Analysis ... 112

G. Test Results the Coefficient of Determination (Adjusted R2) ... . ... 113

CHAPTER V CONCLUSION AND IMPLICATION ... 115

A. Conclusion ... 115

B. Implication ... 115

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LIST OF TABLE

Table 1.1 Credit Card Shopping in Cooperation with Hypermarket 2015 ... 5

Table 2.1 Preview Research ... 31

Table 3.1 Likert Scale ... 42

Table 3.2 Operational Variable ... 54

Table 4.1 Try Out Validity Test Result ... 70

Table 4.2 Try Out Reliability Test Result ... 71

Table 4.3 Respondents by Gender ... 72

Table 4.4 Respondents by Age ... 73

Table 4.5 Respondents by Education ... 74

Table 4.6 Respondents Income per Month ... 75

Table 4.7 Carrefour Physical Appearance is Good ... 76

Table 4.8 The Equipment Provided in Carrefour is Complete Enough (Such as Shopping Bags, Trolley) ... 77

Table 4.9 Employees In Carrefour Dressed Well ... 78

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Table 4.11 Carrefour to Provide Services According to the Promised ... 79

Table 4.12 Carrefour Employees Willing to Help Customers Well ... 80

Table 4.13 Carrefour Employees Assist Customers Well ... 80

Table 4.14 Carrefour Service is Trustworthy ... 81

Table 4.15 Employees in Carrefour Serve with Honest ... 82

Table 4.16 Shopping in Carrefour is Safe (From Pickpocketing) ... 82

Table 4.17 Carrefour Employees Serve with Competent ... 83

Table 4.18 Carrefour Employees are Polite ... 84

Table 4.19 Carrefour Lebak Bulus Easy to Access... 85

Table 4.20 Carrefour Employees are Able to Communicate Well ... 85

Table 4.21 Carrefour is Able to Understand Customer Needs... 86

Table 4.22 Product Samples were Distributed in Carrefour Attract Consumers ... 87

Table 4.23 Coupon or Stamp that Consumers Collect for Getting Discount is Attracted Enough to Consumer ... 88

Table 4.24 The Discounts that Carrefour Gave is Attracted the Consumer ... 88

Table 4.25 Gift or Buy One Get One Program Carrefour is Interesting ... 89

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Table 4.27 Midnight Sale Program and Promo End-month is Interesting ... 90

Table 4.28 Carrefour CSR Programs that Give Discount to SMEs Product is Interesting ... 91

Table 4.29 Discount 10% with Credit Card Mega Bank Profitable ... 92

Table 4.30 I Feel Satisfied with the Products that Carrefour Offered ... 93

Table 4.31 I Feel Satisfied with the Benefits Provided in Carrefour while Shopping ... 94

Table 4.32 I Feel Satisfied that Carrefour Products are Suitable with the Price .... 95

Table 4.33 Product that I Bought Meet My Expectation ... 96

Table 4.34 The Product Quality that Carrefour Offers is in Appropriate as I Expected ... 97

Table 4.35 I Feel Satisfied with the Services that Carrefour Provide ... 98

Table 4.36 I Am Willing to Shop More Products in Carrefour ... 99

Table 4.37 I Am Willing to Tell Positive Things About Carrefour to Friends or Collage ... 100

Table 4.38 I Am Willing to Recommend to Others to Shop at Carrefour ... 101

Table 4.39 I Feel Satisfied with the Services Carrefour Provide ... 102

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Table 4.41 Test Multicollinearity ... 106

Table 4.42 Partial Test Result Significance (t test) ... 108

Table 4.43 Simultaneous Test Result Significance (F test) ... 111

Table 4.44 Result Multiple Linear Regression Analysis ... 112

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LIST OF FIGURE

Figure 2.1 Promotional Techniques for Customers ... 21

Figure 2.2 Conceptual Thinking ... 35

Figure 4.1 Logo Carrefour ... 59

Figure 4.2 Normality Test Results in Graph ... 104

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LIST OF ATTACHMENT

Attachment 1 Research Questioner ... 121

Attachment 2 Table Respondent Answer ... 135

Attachment 3 SPSS Data Quality Test Results ... 150

Attachment 4 Results SPSS Classical Assumption Test ... 159

Attachment 5 Results SPSS Hypothesis Test... 162

Attachment 6 Results SPSS Multiple Linear Regression Analysis ... 163

Attachment 7 SPSS Test Results the Coefficient of Determination (Adjusted R2) ... ... 164

1 CHAPTER I INTRODUCTION

A. Background

There is a lot of shopping center that offer all of our everyday goods and needs. Almost every city in Indonesia has their own shopping center with a variety of shapes and types, such as malls, hypermarkets, supermarkets or minimarket is easy to find in every corner of the city. The growth of the modern retail market continues to spread all across our nation, in the form of hypermarket, and other modern-market. This causes a stronger competition between those retail companies and for each of them a really strong capital owner in order to excel when entering that competitive market. Even, Data Industry Minimarket, Supermarket, Hypermarket in Indonesia showing competition, expansion and growth of modern retail industry in Indonesia that covers minimarket, supermarket, convenience store, hypermarket, and modern trade in Indonesia since 2012-2015.

Not surprisingly, consumer spending in Indonesia grew at an average per year of 11.8% for the period 2012-2015. In 2015, consumer spending on food is estimated at Rp 1.930 trillion, while the food product out of Rp 4,369 trillion (duniaindustri.com 2015).

According to Kotler and Armstrong (2014:396) retailing includes all the activities involved in selling goods or services to the final

2 customers for personal, non-business use. Retail consists of seven types: specialty stores, department stores, supermarkets, convenience stores, discount stores, off-price retailers, and superstores. To respond to consumer demands, a number of companies to grow and multiply, causing the competition, both in terms of price, quality of service and facilities as well as other factors.

Carrefour is one of the places to shop that can provide high comfort and supported by professional services. Carrefour is a French multinational retail company that has stands more than 50 years. In Indonesia, Carrefour's first business steps starting with a store at the Cempaka Putih. Established on October 14, 1998, Carrefour introduced the concept of hypermarkets and provide a new shopping alternative for customers in Indonesia. Carrefour offers the concept of One Stop Shopping that offers a diverse selection of products, low prices, and also provides the best services that exceed customer expectations. Carrefour Lebak Bulus to be one of the main outlets for the producer benefits Carrefour Indonesia. Nowadays, due to changes in the retail business environment in Indonesia made part of the national company Carrefour Indonesia under management CT Corp PT Trans Retail Indonesia. (www.carrefour.co.id)

PT Carrefour Indonesia experienced a sales decline of 2.93% in the second quarter of 2011 to 265 million euros, or Rp3.25 trillion, from the previous 273 million euros, equivalent to Rp3.35 trillion in the first quarter

3 of 2010. Sales of Carrefour Indonesia in the first half of 2011 was continued to grow, helped by sales in the first quarter rose 12,23% to 266 million euros from 237 million euros previously. Financial report first half of 2011 Carrefour Group is listed on the French stock exchange said sales of Carrefour Indonesia until June 30, 2011 amounted to 531 million euro, 4,11% higher than the same period in 2010 amounted to 510 million euros (ipodnews.com 2011).

Many modern market competitors are present in Indonesia led to the emergence of competitive conditions between an increasingly competitive retail. These conditions require Carrefour to develop effective and creative strategies such as in terms of sales promotions in order to increase revenue. The Company promotes its products so that consumers recognize and know these products. In this research, sales promotion as an independent variable (X2).

Promotion is a vital tool that helps the marketer to achievement their sales target and increase the company‘s profit Alvarez and Casielles (2005).

Sales Promotion, a key ingredient in marketing campaigns, consist of a diverse collection of incentive tools, mostly short-term, designed to stimulate quicker or greater purchase of particular products or services by consumers or the trade (Kotler and Keller, 2012:541).

Carrefour is selling run household electronic goods at bargain prices, and payment can be paid in installments with 0% interest and also

4 working with consumer finance companies Source Credit. Carrefour makes third parties together won the same interests, namely to increase sales and achieve awareness.

Carrefour also gives some interesting promos, credit cards under the brand Carrefour Mega Card or CMC is the result of cooperation conducted by Bank Mega and Carrefour on June 10, 2011. The credit card itself is dominated by the power of large companies that Carrefour and Bank Mega. Carrefour is the market leader in the retail industry, while in this case the Mega Bank Card Business a top 5 credit card issuing bank in Indonesia. Mega Carrefour Card credit cards have many advantages which continuously throughout the year. As the owner of the credit card Mega Carrefour Card, you get the ease and convenience of shopping facilities in Indonesia. The convenience of shopping will be supported by the strength of a transaction using a credit card that is safe and comfortable (www.teropongbisnis.com 2013).

Transmart Carrefour offers are currently giving out some interesting promo a 10% discount program for all goods in specialized Carrefour outlets throughout Indonesia Mega Bank credit card holder. Because of this promo, Carrefour raised its customers by 17.000-20.000 per days in every outlet (Danaaditiasari, 2015).

According Taswan (2003) in Zainun (2011) credit card is a card that can be used as a means of payment transactions for goods and

5 services, then payment of the user can be done at once or in installments of a certain minimum amount.

Table 1.1

Credit Card Shopping in Cooperation with Hypermarket 2015

NO. BANK / CREDIT CARD HYPERMARKET

1 BCA Everyday Card Carrefour, Hypermart, Giant, and Lotte Mart

2 Mega Carrefour Card Carrefour

3 Mandiri Hypermart Card Gold Hypermart 4 BNI LOTTEMart Mastercard Gold Lotte Mart (Source: www.cermati.com 2015) Based on the table above:

1. BCA Everyday Card has a promotion for every transaction made, will get what cash back by 5% when shopping at Carrefour, Hypermart, Giant, and Lotte Mart using BCA Everyday Card.

2. Mega Carrefour Card credit cards in collaboration between Bank Mega and Carrefour, so it can get a 10% discount when shopping Carrefour private label products in each transaction for all branches of Carrefour.

3. Mandiri Hypermart Visa Gold sale for all household products in swayalan Hypermart outlets. Addition, cash back of 10% can be obtained at Hypermart and Foodmart.

4. BNI Lotte Mart offered a discount of 5% for private brand and will also get cash back of up to 3%. You get a variety of benefits offered

6 by the BNI and merchants work together with him, both for transactions within the country or abroad.

According to Satria Hamid, Head of Public Affairs Transmart Carrefour, in Carrefour itself there are various promotional programs conducted every week, among other promo discounts, promo catalogs and newspapers promo. In addition, Carrefour performs internal research to determine the goods that excels in its category. We're sort of the top 5 or top 3 of each product fit the category. This is done so that we provide the latest products to consumers, the products are up to date a good product and become a market leader and preferred by consumers. So we provide promo by catalogs. Carrefour targeted segment is very broad, ranging from the upper-middle to lower-middle. Upper-middle consumer is generally not too concerned about the price. They have also been loyal to a particular brand, but there are also consumers who sometimes squeamish about the price. Therefore, Carrefour offers a choice to the consumer private label products. Apart from the products, Carrefour also provides value added to the consumer in the form of a variety of promotion and marketing programs, such as programs Back to Hometown Together (Harry Tanoso, 2014).

For the 5 years since 2011, Transmart Carrefour received the CSR Award from the Government of West Java Province. The award is given on CSR programs conducted by the Carrefour throughout 2015 until early 2016. Such as: Assistance to SMEs in West Java to increase

7 market access for them. Education programs through OSOS (One Store One School), and the Community Development program. The award is given to Carrefour as the pride of Indonesia as a development partner of West Java through its CSR program in 2015 (Adityaputri, 2015).

Besides using a sales promotion as strategy, service also important in the sale of a product to increase the company profit. Companies never stop given the good service to the customer. According to Lovelock and Wirtz (2011:36) services involve a form of rental through which customers can obtain benefits. We emphasize that purchasers buy services because they are looking for desired results. Services as economic activities between two parties, implying an exchange of value between seller and buyer in the marketplace In fact, many firms explicitly market their services as solutions to prospective customer‘s needs.

Based on that service have a more benefit for customer especially company. Good service can give more profitability to company. In the other side bad services can give disaster to company. For getting good service, companies must be understood about service quality. In this research, service quality as an independent variable (X1). Service quality is usually understood as a measure of how well the level of the delivered services matches customer‘s expectations. Service quality is calculated as the gap between customer expectations and perceptions, and is characterized by five dimensions namely

8 reliability, responsiveness, assurance, empathy, and tangibles (Santouridis and Trivellas: 2010).

According to El-Salam, Shawky and El-Nahas (2013) in an increasingly competitive environment service quality as an essential strategy for success and survival has attracted increasing interest in over the past 20 years. Striving to gain a strategic competitive advantage by delivering service with quality and satisfaction, several researchers have agreed that if companies do not recognize and respond immediately to customer‘s needs efficiently and effectively, the result may be decreasing profits, increasing levels of stress and customer dissatisfaction. Therefore, companies must constantly ask themselves, what do customers want from us and how can we improve current customer‘s perception.

Customer satisfaction on this research, as a independent variables (X3) Satisfaction is a person‘s feeling of pleasure or disappointment resulting from comparing a product‘s perceived performance (or outcome) in relation to his or her expectations. Therefore, satisfaction is closely related to consumers‘ expectations (Sondoh Jr, Omar, and Friends: 2007).

The difference between the prices listed on the shelf of the store with the data listed in the cashier often encountered when shopping customers. Obviously this raises a disappointment and the presumption itself. For retailers, recently Transmart Carrefour received a similar complaint. A visitor found the price of drinks bottles bought differ

9 between the price on the store shelf and at the cashier when paying. Allegedly, this omission occurred because the placement of the product not only in one area alone. Bottled beverage products are usually placed at some point, for example on the shelf drinks, in cold drinks chiller, and on the shelves near the cash register. When changing the price, there is the possibility of replacing the staff inattentive price at one of the shelves.

Transmart Carrefour apologizes for any inconvenience that causes customers to feel disappointed and dissatisfied. Satria said, it was realized and Carrefour Transmart understand the disappointment felt when the customer had to pay a price higher than that seen on the shelf. For that Transmart Carrefour apologizes for any inconvenience and this omission. As a reflection of our responsibilities on this omission, Transmart Carrefour gives consumers the lowest prices of goods and compensation plus 2x (twice) as much of the difference in price of the items found differences in prices. Replacement of the difference in price of goods is valid in all Carrefour outlets Transmart start date of March 31, 2016 and for any goods (www.carrefour.co.id)

Based on the background above, the writer is interested to do a research with the tittle “Influence of Service Quality, Sales Promotion and Customer Satisfaction toward Customer Loyalty (Study Case Carrefour Lebak Bulus)”.

10 B. Research Problem

Based on the background that the author has described, the formulations of the problem are:

1. Does service quality significantly influence towards customer loyalty on Carrefour Lebak Bulus?

2. Does sales promotion significantly influence towards customer loyalty on Carrefour Lebak Bulus?

3. Does customer satisfaction significantly influence towards customer loyalty on Carrefour Lebak Bulus?

4. Do quality of service, sales promotion and customer satisfaction significantly influence simultaneously towards customer loyalty on Carrefour Lebak Bulus?

C. Research Objective

Based on the questions above, the purposes of this research are: 1. To analyze the influence of service quality towards customer loyalty

on Carrefour Lebak Bulus.

2. To analyze the influence of sales promotion towards customer loyalty on Carrefour Lebak Bulus.

3. To analyze the influence of customer satisfaction towards customer loyalty to the Carrefour Lebak Bulus.

4. To analyze the influence of service quality, sales promotion, and customer satisfaction simultaneously towards customer loyalty on Carrefour Lebak Bulus.

11 D. Research Advantages

1. For the author, this research can improve the author‘s knowledge and this topic can always be used in every kind of business. This research is also done in order to graduate as a Bachelor of Economics of State Islamic University Jakarta.

2. For company, the result of this research can be used to improve the strategy of Carrefour Company because the results are based from customer‘s loyalty.

3. For Islamic State University (UIN) Jakarta, the research can also be used for other students in order to help the students to finish their thesis.

4. For reader and another research, I hope people who read this research will feel easy to read the methods of this research.

12 CHAPTER II LITERATUR REVIEW

A. Service

1. Definition of Service

A service is any act or performance that one party can offer to another that is essentially intangible and does not result in ownership of anything. Its production may or may not be tied to a physical product. (Kotler and Keller, 2012:400).

Services involve a form of rental through which customers can obtain benefits. What customers value and are willing to pay for are desired experiences and solutions. We use the term rent as a genetic term to denote the payment made for using or accessing something typically for a defined period of time instead of buying it outright. You can‘t own people, but you can pay rent their labor and expertise (Lovelock and Wirtz, 2011:36).

We emphasize that purchasers buy services because they are looking for desired results. In fact, many firms explicitly market their services as solutions to prospective customers needs. And finally, our definition emphasizes that while customers expect value from their service purchases in exchange for money, time, and effort; this value comes from access to a variety of value creating elements rather than transfer of ownership (Lovelock and Wirtz, 2011: 37).

13 In marketing, consumers choose the supplier of goods (including supermarkets) based on their experiences after receiving the service from the company, they compare the perceived service with the desired service. If the perceived service is under the expected service, the consumer is difficult to believe in the company. If the perceived service in accordance with the desired quality, they will use the product or service again. Therefore, the quality of service in terms of marketing plays a very important, because it can foster consumer's commitment to the company or the products or services rendered. This commitment will increase the repurchase by customers at once will become indirectly sale to prospective customers to another.

B. Service Quality

1. Definition of Service Quality

A service is an economic activity that creates value and provides benefits for customers at specific times and places by bringing about a desired change in or on behalf of the recipient of the service. Although the process may be tied to a physical product, the performance is transitory, often intangible in nature and does not normally result in ownership of any of the factors of production (Lovelock, C. and Wirtz, J. 2004). However, being able to satisfy given needs reflects the value (or quality) of the product or service to the customer, including the economic value, safety, reliability, and maintainability (Garvin, D.A., 1989). Therefore, a customer‘s

14 evaluation of service quality and the resulting level of satisfaction are perceived to affect bottom line measures of business success (Lacobucci, D., Grayson, K. A., and Omstrom, A. L. 1994) in Poku et. al (2013)

Company personnel need a common understanding to address issues such as the measurement of service quality, the identification of causes of service quality shortfalls, and the design and implement of corrective actions (Lovelock and Wirtz, 2011:405).

In an increasingly competitive environment service quality as an essential strategy for success and survival has attracted increasing interest in over the past 20 years. Striving to gain a strategic competitive advantage by delivering service with quality and satisfaction, several researchers have agreed that if companies do not recognize and respond immediately to customer‘s needs efficiently and effectively, the result may be decreasing profits, increasing levels of stress and customer dissatisfaction. Therefore, companies must constantly ask themselves, what do customers want from us and how can we improve current customer‘s perception. Consequently, there is a huge body of marketing literature that is concerned with service quality, customer satisfaction, and customer loyalty as three distinctive elements hat service organizations should strive for (El-Salam, Shawky and El-Nahas: 2013).

15 Premium service quality is a key to gain a competitive advantage in services industry. The satisfaction level of customers is dependent on their perception of service quality and the trust in service provider (Ismail et al., 2006; Aydin & Özer, 2005; and Parasuraman et. al 1988, in Mubbsher, 2014).

Based on these components known that the output of the services and their delivery means are all factors used in quality of service, it is often the determination of the quality of service becomes very complex. The various components, a customer purchases to the air quality continues directly and started before the purchase until the results are processed from products or services that have been consumed by the customer.

2. Measurement of Service Quality

In assessing or evaluating the service quality of a company, customers generally use several criteria, namely in the form of elements that exist in the quality of service which is then described by the dimensions of service quality.

Valerie Zeithaml, Leonard Berry, and A. Parasuraman in Lovelock and Wirzt (2011:406) have conducted intensive research on service quality and identified 10 dimensions used by consumers in evaluating service quality. In subsequent research, they found a high degree of correlation between several of these variables and consolidated them into five broad dimensions:

16 a. Tangibles: Appearance of physical facilities, equipment, personnel

and communication materials

b. Reliability: Ability to perform the promised service

c. Responsiveness: Willingness to help customers and provide prompt service

d. Assurance:

1) Credibility: Trustworthiness, believability, honesty of service provider

2) Security: Freedom from dangerous, risk or doubt

3) Competence: Possession of the skills and knowledge required to perform the service

4) Courtesy: Politeness, respect, consideration and friendliness of contact personnel

e. Empathy:

1) Access: Approachability and ease of contact

2) Communications: Listening to the customer and keeping them informed in a language the can understand

3) Understanding the customer: making the effort to know customers and their needs

17 C. Sales Promotion

1. Definition of Sales Promotion

Promotion is a vital tool that helps the marketer to achievement their sales target and increase the company‘s profit Alvarez snd Casielles (2005).

Marketing literature supports this fact that the regular customers, who purchase the product frequently, are profitable and are primary concern of the companies (Nagar, 2009). Peattie and Peattie (1994) in Saeed (2013) defined the sales promotion as marketing activity specific to a group of customers, a particular place and or time bound, which encourages an immediate or direct response from customer by offering additional valuable benefits.

Sales Promotion, a key ingredient in marketing campaigns, consist of a diverse collection of incentive tools, mostly shortterm, designed to stimulate quicker or greater purchase of particular products or services by consumers or the trade (Kotler and Keller, 2012:541).

Meanwhile, According Kotler and Armstrong (2014:501), Sales promotion consists of short-term incentives to encourage purchase or sales of a productor service. Whereas advertising offers reason to buy a product or service, sales promotion offers reasons to buy now.

18 A conclusion can be drawn that reflect a sales promotion incentives and prizes to get customers to buy the company's products at the present time as opposed to buying later. Sales promotion generates consumer response faster in sales. Growth of sales promotion may reflect higher corporate priority, it relates to sales compared with the establishment of the brand in the long term. Sales promotion can be directed to customers, retailers and other salespeople. Customers will be happy to buy our products if given coupons discounts, pricing packages and other gifts. Retailers also would work harder if given offer price discounts, as well as display ads, and free products. Retailers will operate more viable if the holding contests with prizes for the best performance. 2. Measurement of Sales Promotion

According to Kotler and Armstrong (2014: 503-504) Consumer promotions include a wide range of tools—from samples, coupons, refunds, premiums, and point-of-purchase displays to contests, sweepstakes, and event sponsorships.

a. Samples are offers of a trial amount of a product. Sampling is the most effective—but most expensive—way to introduce a new product or create new excitement for an existing one.

b. Coupons are certificates that give buyers a saving when they purchase specified products. Most consumers love coupons.. Thus,

19 most major consumer goods companies are issuing fewer coupons and targeting them more carefully.

c. Cash refunds (or rebates) are like coupons except that the price reduction occurs after the purchase rather than at the retail outlet. The customer sends a ―proof of purchase‖ to the manufacturer, which then refunds part of the purchase price by mail.

d. Price packs (also called cents-off deals) offer consumers savings off the regular price of a product. The producer marks the reduced prices directly on the label or package. Price packs can be single packages sold at a reduced price or two related products banded together. Price packs are very effective—even more so than coupons—in stimulating short-term sales.

e. Premiums are goods offered either free or at low cost as an incentive to buy a product.

f. Advertising specialties, also called promotional products, are useful articles imprinted with an advertiser‘s name, logo, or message that are given as gifts to consumers. Typical items include T-shirts and other apparel, pens, coffee mugs, calendars, key rings, mouse pads, matches, tote bags, coolers, golf balls, and caps

g. Point-of-purchase (POP) promotions include displays and demonstrations that take place at the point of sale. Chances are good that you were tripping over aisle displays, promotional signs, ―shelf

20 talkers,‖ or demonstrators offering free tastes of featured food products.

h. Contests, sweepstakes, and games give consumers the chance to win something, such as cash, trips, or goods, by luck or through extra effort. A contest calls for consumers to submit an entry—a jingle, guess, suggestion—to be judged by a panel that will select the best entries. A sweepstakes calls for consumers to submit their names for a drawing. A game presents consumers with something—bingo numbers, missing letters—every time they buy, which may or may not help them win a prize. Such promotions can create considerable brand attention and consumer involvement.

i. Event marketing (or event sponsorships) they can create their own brand-marketing events or serve as sole or participating sponsors of events created by others. The events might include anything from mobile brand tours to festivals, reunions, marathons, concerts, or other sponsored gatherings.

From the perspective of sales promotional tools used towards customers, Solomon et. al (2010) in Dainora (2010). Indicated three major types the explanation of each type of sales promotional tool will be explained with illustrations from the practice in Lithuanian supermarkets, as investigated by the author, using the method of observation. (See Figure 2.1):

21 Figure 2.1

Promotional Techniques for Customers Source: From Solomon et. al (2010) a. Price or value discount promotion tools include:

1) Coupons for packaged-goods products Solomon et. al (2010). These days in Lithuania, various supermarkets offer from 20-45% or more discounts on weekends or holiday season for consumables.

2) Rebates, companies place in newspapers, send by mail or by mobile phone, or offer on a Web site, a marketer may offer a temporary price reduction at the store or offer a rebate Solomon et. al (2010). A rebate refunds part of the purchase price Solomon et. al (2010) in Lithuania a person does not have to fill in any requested forms as most of Lithuanian supermarkets have introduced loyalty cards,

22 where a percentage of the purchase amount is being accumulated over the time and a customer can use the accumulate sum up on the next purchase.

3) Bonus packs deliver more of the same product without any extra cost for a customer. Usually hygiene and cosmetics products tend to adopt this strategy, e.g. 20% extra toothpaste in the packaging for the same price of 250ml toothpaste tube. But it also works very well with foods. b. Visibility-increasing promotion tools include:

1) Premium, which is a free item you receive if you purchase another item Solomon et. al (2010). Premiums are very popular in hygiene products market, e.g. a pack washing powder could be blocked together with a free fabric conditioner small size of course; or a bottle of washing up liquid Fairy might have a free washing sponge attached to the bottle; or a bottle of shampoo with a free hair conditioner.

2) Contests and sweepstakes offer the opportunity to win an exciting prize Solomon et. al (2010), not actually connected to the place of shopping. The difference between the two is that a contest is a test of skill, whereas a sweepstakes is simply based on luck Solomon et. al (2010).

23 c. Volume-increasing promotion tools for customers could

include:

1) Sampling is a popular though expensive promotional tool Solomon et. al (2010). Food and beverage companies often provide free samples to consumers to give them a chance to try a new product for free Solomon et. al (2010).

2) Loyalty programs reward consumers for their frequent, continuing purchase of a product Solomon et. al (2010). As observed in Lithuanian supermarkets, they all issue loyalty cards for customers, though the loyalty programmers do differ amongst themselves. Usually a customer attains 1% of the total purchase value on to the loyalty card, this valid for the newly introduced RIMI loyalty card.

D. Customer Satisfaction

1. Definition of Customer Satisfaction

Kotler and Keller (2012:150) define satisfaction as a person‘s feelings of pleasure or disappointment resulting from comparing a product perceived performance (or outcome) in relation to his or her expectations. If the performance falls short of expectations, the customer is satisfied. If the performance exceeds expectations, the customer is highly satisfied or delighted. Service quality has a close relationship with customer satisfaction. Quality gives a push to consumers for establish a strong relationship with

24 the company. In the long term, this relationship enables companies to understand consumer expectations and needs carefully. Thus, companies can increase customer satisfaction and at the end its satisfaction can create loyalty or customer loyalty.

Buttle (2006) in Ibrahim et. al (2014) agreed that satisfaction is a pleasurable fulfillment response while dissatisfaction is un-pleasurable fulfillment response.

Customer satisfaction is a key factor in formation of customer‘s desires for future purchase (Mittal & Kamakura, 2001). Furthermore, the satisfied customers will probably talk to others about their good experiences. This fact, especially in the Middle Eastern cultures, where the social life has been shaped in a way that social communication with other people enhances the society, is more important Jamal and Naser (2002) in Mohd (2014).

2. Measurement of Customer Satisfaction

Kotler and Amstrong (2014:148) discuss several methods to measure customer satisfaction, which are:

a. Complaint and Suggestion System

Each customer oriented service organization should provide the widest opportunity to its customers to submit suggestion, criticism, opinions, and their complaints. Information obtained through this method can provide new ideas and input are

25 valuable to the company making it possible to react quickly and respond in overcome the problems that arise.

b. Customer Satisfaction Survey

Like in this research, company can do a survey to measure customer satisfaction using such as questioner or by phone calls to a random sample of their customers. Through the survey, companies will get responses and feedback directly from customers and give a positive sign that companies pay attention to them. Customer satisfaction survey is divided into four categories, which are:

a. Directly report satisfaction: The respondents are being asked directly with question in order to know if they are very satisfied, satisfied, neutral, dissatisfied, or very dissatisfied. This survey is to use to collect the customer opinion and needs which can give the result called the customer satisfaction index. This customer satisfaction indexes the standard of company needs to maintain. b. Derived dissatisfaction: The question that being asked

included two aspects, how high is the customer expectation in the certain attribute, and how high is the performance that customer‘s feel of this attribute.

26 c. Problem analysis: The respondents are being asked to describe two things; the problem which related with the company offer and suggestion for improvement.

d. Importance performance analysis: The respondents are asked to rate the services according to the customer importance and company performance in each attributes. e. Ghost shopping: This method use a person to pose as

potential buyer to report their findings on strong and weakness points when experience buying the company‘s and competitor‘s product. Ghost shoppers also can observe how the company and its competitors in serving customer demands, answering customer question, and solve any problems or customer complaints.

f. Lost customer analysis: The Company contact customers who have stopped buying or switched to another supplier to learn why this condition happened and in order to understand and take the police to further improve or refine.

g. Some caution in measuring customer satisfaction: The Company must make a well-structured questionnaire; otherwise the customer would face a huge questionnaire. The company must also be able to recognize that two customers can report being highly satisfied for two

27 reasons. One person maybe easily satisfied most of the time, and the other one might be hard to please but was pleased on this occasion.

According to Sondoh Jr. et. al (2007) in Thakur and Singh (2012) Customer satisfaction is the accumulated experience of a customer‘s purchase and consumption experiences. It was therefore; client satisfaction construct in this paper will be measured through overall satisfaction toward the services. Customer‘s satisfaction is influenced by two factors which is experiences and expectations with service performance. Operationally, satisfaction is similar to an attitude, as it can be assessed as the sum of the satisfactions with the various attributes of the product or service. Satisfaction may be defined as expectation before purchase and perception about performance after purchase, The expectancy disconfirmation paradigm suggests that consumers are satisfied when the product perform better than expected (positive disconfirmation), dissatisfied when consumers' expectations exceeded actual product performance (negative disconfirmation), and neutral satisfaction when the product performance matches expectations (zero disconfirmation or confirmation).

28 E. Customer Loyalty

1. Definition of Customer Loyalty

Creating strong connection with customers to build the loyalty is the dream of any marketers and often the key to long- term marketing success. Customer loyalty is a biased behavioral response, expressed over time, by some decision making unit with respect to one store out of a set of discount retail stores, which is a function of psychological decision-making and evaluative processes resulting in store commitment (Jacoby and Chestnut, 1978; Knox and Walker, 2001) in Kumaradeepan and Pathmini (2015).

Satisfaction is positively associated with customer loyalty (Sharma and Patterson, 2000) and its related with business relationship (Burnham et al. 2003) Companies, which manage to satisfy their customers, retain them for as long as possible, and hopefully turn them into loyal customers, will certainly be in a better competitive position and achieve a better financial performance in (Almossawi, 2012).

According to Oliver (1999) in Oyeniyi (2011) further stated that loyalty is a deeply held commitment to re-buy or patronize a preferred product or service consistently in the future, thereby causing repetitive same-brand or same-brand set purchasing.

29 From the definition above, customer loyalty can be defined as the behavior of the repurchase of a product or in the company from time to time, which are beneficial and which can reduce or prevent the tendency of consumers to switch to manufacturers or other companies.

2. Measurement of Customer Loyalty

According to Griffin (2009:31), customer loyalty is customers who have the following characteristics:

a. Makes regular repeat purchase: Loyalty is refers to the form of the behavior of these units to make a purchase decision-making continuously for goods or services of a company that is selected. The level of satisfaction with the store will influence them to buy back.

b. Purchases across product and service lines: Buying outside line of products and services means that the desire to buy more of the products and services that have been offered by the company. Customers who already believe in the company in an affair it will be believed also to other matters.

c. Refers others: Loyal customers willingly recommend the company to friends and colleagues.

d. Demonstrates immunity to the full of the competition: Is not easily affected by the pull of competition other similar companies.

30 F. Preview Research

31 Table 2.1

Table Preview Research RESEARCHER

(YEAR)

TITLE VARIABEL RESEARCH METHOD

RESULT

Kofi Poku, Mariama zakari and Ajara Soali (2013) Impact of Service Quality on Custome r Loyalty in the Hotel Industry: An Empirica l Study from Ghana. Internati onal Review of Manage ment and Business Research Vol. 2 Issue.2 ISSN: 2306-9007 Service Quality (X) Customer Loyalty (Y) Purposive Sampling, Questioner and Interview

(Multiple Regression)

The relationships and impact of the service quality variables are further buttressed by the results of a simple Probit Regression Model where the elements of service quality as against customer loyalty status are fit into a regression model. Responsiveness variable for the 3-star hotel, empathy and assurance variables play significant roles in generating customer loyalty for the 4-star and 3-star hotels, while reliability generates loyalty for Lizzie‘s hotel, a 2-star hotel. Guest however, were least satisfied with the tangibility variable which does not also make any significant impact on their loyalty to the respective hotels.

32 RESEARCHER

(YEAR)

TITLE VARIABLE RESEARCH

METHOD RESULT Dr. Rashid Saeed, Fareeha Nisar, Rab Nawaz Lodhi, Dr. Moeed Ahmad and Dr. Hafiz Muhammad Arshad (2013) Impact of Sales Promotion on the Consumer Loyalty in the Telecomm unication Industry in Pakistan. J. Basic. Appl. Sci. Res., 3(5)901-907, 2013. ISSN 2090-4304. Sales Promotion (X) Customer loyalty (Y) Simple regression

Sales promotion increases the consumer loyalty and as the sales promotion

expenditures

increases so does the consumer loyalty. Increasing trend has also

opened many

dimensions of customer response. The consumers are more prone to sales promotion and exhibit switching behavior between two or more networks to take the advantage of the promotional

discounts. As the results also indicate that, the monetary savings have high impact on the consumer loyalty as compare to the other factors. But it does not mean that tendency of being loyal or switch

between the

networks is due to the quality of services during the time period of sales promotion.

33 RESEARCHER

(YEAR)

TITLE VARIABLE RESEARCH

METHOD

RESULT

Satrendra Thakur and Dr. A. P. Singh (2012) Brand Image, Customer Satisfactio n and Customer Loyalty Intention a Study in the Context of Cosmetic Product among the People among of Central India Vol.2 Issue 5, May 2012, ISSN 2249 8834 Customer Satisfaction (X) Customer Loyalty Intention (Y) Correlation (Path)

In this research we have examine the relationship between brand image, customer satisfaction and loyalty intention in the context of cosmetic product of selected company brand among the peoples of central India, five benefit of brand image has been discussed namely social, functional, symbolic, experiential and appearance enhance. Result has shown that three brand image benefit namely functional, social and appearance enhance has positively and significantly related to customer satisfaction and loyalty intention and two

benefit namely

experiential and symbolic has no significant impact on customer satisfaction and loyalty intention on the other hand result indicate that there is a positive relationship between customer satisfaction and loyalty intention. The results imply that marketing manager should focus on the brand image to win the customer satisfaction in order to make the customer loyal about their product and service.

34 RESEARCHER

(YEAR)

TITLE VARIABLE RESEARCH

METHOD RESULT Kamalakumati Karunanithy and Dilani Rasanayagam (2013) Impact of Customer Satisfacti on on Customer Loyalty. Vol.3, No.7, 2013. ISSN 2224-6096 ISSN 2225-0581 Customer Satisfaction (X) Customer Loyalty (Y) Regression and Correlation analysis

According to the model pricing and brand image are low level contribution with customer loyalty. So other factors may be of more influence with customer loyalty. These factors could be evaluated by further researches by incorporating those variables. As conclusion, through the development of the variables and maintaining the quality of the service or product would definitely pave way for expansion of the customer increase in net profit.

35 G. Theoretical Framework

Figure2.1 Conceptual Thinking

Try-our Test: 1. Validity Test 2. Reliability Test

Classic Assumption Test: 1. Normality

2. Test Multicollineaity 3. Test Heteroskedasticity

Determinant Coefficient (Adjusted R²) Hypothesis Test: 1. Partial Test (t-test) 2. Simultaneous Test (F-test)

Customer Loyalty (Y)

Multiple Linear Regresion

Interpretation

36 H. Hypothesis

According Sugiyono (2013: 100), the hypothesis can be interpreted as a statistical statement about the population parameters. To test the independent variable on the dependent variable, we need the following hypothesis:

a. H0 ; β1 ≠ 0. There is a positive influence between the variables of sales promotion to customer loyalty.

Ha ; β1 = 0 There is a positive influence between the variables of sales promotion to customer loyalty.

b. H0; β2 ≠ 0. There is a positive influence between the variables of service quality on customer loyalty.

Ha ; β2 = 0 There is a positive influence between the variables of service quality on customer loyalty.

c. H0 ; β3 ≠ 0. There is a positive influence between variable customer satisfactions on customer loyalty.

Ha ; β3 = 0 There is a positive influence between variable location on customer loyalty.

d. H0 ; β4 ≠ 0. There is a positive influence between the variables of sales promotion, quality of service and customer satisfaction on customer loyalty.

Ha ; β4 = 0 There is a positive influence between the variables of sales promotion, quality of service, customer satisfaction on customer loyalty.

37 CHAPTER III

RESEARCH METHODOLOGY

A. Scope of Research

In writing this essay were made respondents in the study is the consumers who shopped at Carrefour Lebak Bulus. Research conducted at Carrefour Lebak Bulus, when the study began on August 23, 2016. By providing a questionnaire to the customer Carrefour. As will be discussed is about how much the Service Quality, Sales Promotion and Customer Satisfaction infuencing Customer Loyalty on Carrefour Lebak Bulus. As the independent variable in this study was given the symbol of Service Quality (X1), Sales Promotion (X2) and Customer Satisfaction (X3). While the dependent variable in this study was Customer Loyalty given the symbol (Y).

B. Determination Sample Method 1. Population

Population is the generalization region consisting of the objects or subjects that have certain qualities and characteristics defined by the researchers to learn and then be inferred (Sugiono, 2013:115).

The population in this study is member or non-member customer carrefour Lebak Bulus.

38 2. Sample

The sample is part of the number and characteristics possessed by the population, to be investigated and considered to be representative of the overall population and a smaller number of populations (Sugiyono, 2013:116).

The sample in this study was the visitors who shop at Carrefour Lebak Bulus. In this study writing, researchers used a method of Purposive sampling. Purposive sampling is which the population elements are purposively selected based on the judgment of the researcher. The researcher, exercising judgment or expertise, chooses the elements to be included in the sample, because researcher believe that they are representative of interest or are otherwise appropriate (Malhotra 2009: 377).

Due to the number of population is not known for sure to know the size of the sample that is using a convenience sampling technique. Based on this, researchers select to filter the existing questionnaires, if these people are known. For example, used the sample to estimate the mean value, If used to estimate μ, we can (1-α)% confident that the error does not exceed a certain value е when the sample size of n,

Where:

39 Information:

= Number of samples

Zα = Size trust level with α = 0,05 (confidence level 95% means

Found in table 1,96) = Standard deviation

= Standart error that can be tolerated (5% = 0,05) By calculation:

n =

From the calculation results, the samples obtained in the amount of 96.04 to make it easier then rounded to 100 respondents. So in this study will use the 100 respondents to the research sample.

C. Data Collection Technique

Data processing techniques are ways that can be used by researchers to collect data. In this study, researchers will gather data could be a source of primary and secondary sources:

1. Primary Data

Data used in this study are primary data. Primary data is data obtained directly from the source first. Data collection is done by:

40 a.Interview method

Interview method is a method of data collection with a question and answer directly to the respondents to obtain more accurate data respecting with issues to be discussed.

b.Questionnaire method

Questionnaire method is a method to obtain data that is done by providing a list of questions that will be filled by respondents including questions about the variable service quality, sales promotion and customer satisfaction toward customer loyalty on Carrefour Lebak Bulus.

Questioner is a formalized set of questions for obtaining information for respondents. It has three specific objectives (Malhotra, 2009: 330)

Three specific objectives (Malhotra, 2009: 330):

1) The overriding objective is to translate the researcher‘s information needs into a set of specific questions that respondents are willing and able to answer.

2) A questionnaire should be written to minimize demands imposed on respondents. It should encourage them to participate in the entire interview, without biasing their responses.

41 3) A questionnaire should minimize response error. These errors can arise from respondents who give inaccurate answers or from researchers incorrectly recording or analyzing their answer.

The questionnaire for this research will be filled out by the respondents and will be include question about the variable service quality, sales promotion and customer satisfaction toward customer loyalty on Carrefour Lebak Bulus. In this questionnaire there are two parts, namely:

Part I: Concerning the respondent data those are name, gender, level of education and monthly income.

Part II: On the list of questions that will be filled by the respondent. This study used a Likert scale measuring agreement and disagreement of respondents in responses proposed the statement. Likert scale is a measurement with five response categories ranging from ―strongly disagree‖ to ―strongly agree‖, which requires the respondents to indicate a degree of agreement or disagreement with each of a series of statements related to the stimulus objects (Maholtra, 2009:264).

The score of questionnaire assessment figures resulted in this study is according to the Likert scale described in the methods used to measure attitudes, opinions, and perceptions of a person or group of persons on a social phenomenon (Sugiyono, 2013:93).

42 A measurement of each variable in this research using Likert scale to measure attitudes, opinion and perceptions of individuals or groups social phenomena (Sugiyono, 2013:94).

By using a Likert scale, the measurement variable is an indicator variable that will be outlined. Using a Likert scale of five (5) levels to express the attitude or the respondent‘s answer as follows:

Table 3.1 Likert Scale

Strongly agree / always / very positive / very

satisfactory 5

Agree / often / positive / satisfying 4

Neutral/ hesitant / sometimes 3

Disagree / never / negative / unsatisfactory 2 Strongly disagree / strongly never / very

dissatisfy 1

Source: (Sugiyono, 2013:133) 2. Secondary Data

A secondary source is a source that does not directly provide data to data collectors, for example through others or through documents. Secondary data were generally obtained by the founders to provide additional information and images for further processing. Secondary data used in this study was obtained from books, journals, literature or other writings that are considered related to the problems studied by using written reports or

43 documentation of previous studies and other information that can be retrieved through the system online (internet).

In the process of secondary data collection, the researchers collected data related to and associated with the research. So it can support materials to support this research.

D. Methods of Data Analysis 1. Validity Test

Validity test used to measure the validity of the data in the study. According (Ghozali, 2011:52) validity test is used to measure the legitimacy of a questionnaire.

Validity test used to measure the validity of a questionnaire. Testing was conducted using Pearson correlation, guidelines for a model is said to be valid if the significance level below 0,05 then the questions can be said to be valid. In addition, the criteria used in determining whether or not valid questions or statements used in this study is the 95% confidence level (α = 5%), the number of respondents as many as 30 respondents to pre-test, and compared with the value of r table = 0,361 in the can of degree of freedom (df) = n - 2, in this case n is the number of pre-test sample of 30 respondents. A questionnaire is said to be valid when the value of r count larger than r table.

Test will test the validity of each variable used in this study. Here are the results to test the validity of the variable service quality,

44 sales promotion and customer satisfaction with 30 samples of respondents.

2. Reliability Test

Reliability is a tool to measure a questionnaire which is an indicator of variables or constructs. A questionnaire said to be reliable or reliable if someone answers to questions are consistent or stable over time. SPSS provides the facility to measure the reliability of the statistical test Cronbach Alpha (α). a construct or variable said to be reliable if it provides value (α) 0,70 (Ghozali, 2011:47-48).

In other words able to obtain precise data on the variables studied. Testing of each item used item analysis, the reliability test is a measure of stability and reliability testing instruments used in this study using Cronbach's Alpha formula.

E. Classical Assumption Test 1. Normality Test

Normality test aims to test whether the regression model or residual confounding variables have a normal distribution. Studies that use a more reliable method to test the data have a normal distribution or not by looking at the Normal Probability Plot. A good regression model is to have a normal data distribution or dissemination of statistical data on a diagonal axis of the graph of a normal distribution (Ghozali, 2011:160).

45 There are several ways to detect normality to see the spread of the data (points) on the diagonal axis of the graph. There are two ways to detect whether residual normal distribution or not is by analysis of graphs and statistical tests (test Kolmogorov - Smirnov), with the following explanation (Ghozali, 2011:147).

a. Normality Test in Charts

One of the easiest ways to see the residual normality is to look at the histogram graph that compares the distribution of observation data with which to detect the normal distribution. However, just by looking at the histogram this can be misleading, especially to the small sample size. More reliable method is to look at normal probability plots comparing the cumulative distribution of the normal distribution. The normal distribution will form a straight diagonal line and residual plotting the data will be compared with a diagonal line (Ghozali, 2011:147).

Basis for a decision in the normality test is:

1) If the data is spread around the diagonal line and follow the direction of the diagonal line, the regressions meet the assumption of normality.

2) If the data spread of the diagonal line and did not follow directions or diagonal line, the regression model did not meet the assumption of normality.

46 b. Normality Test in Statistics

Normality test graphically can be misleading if not carefully look at it. Therefore it is recommended to complete normality test graphically statistical normality test (Ghozali, 2011:163).

In addition to seeing the normal curve P-plot, the normality test can also be performed using the Kolmogorov-Smirnov test. In Kolmogorov Kolmogorov-Smirnov test the hypotheses that apply are:

H0 = Samples derived from data or population v normally distributed.

Ha = Samples derived from data or populations that are not normally distributed.

In this test if sig. < 0,05 then the data is not distributed normally. However, if the value of sig. > 0,05 then normally distributed data (Santoso, 2011:193-196).

2. Multicollinearity Test

Multicollinearity test aims to test whether the regression model found a correlation between free variables of service quality, sales promotion, and customer satisfaction. In the regression model is a good should not happen correlation between independent variables (Ghozali, 2011:105).

47 A good regression model should not happen correlation between independent variables. If the independent variables are correlated, then these variables are not orthogonal. Orthogonal variable is the independent variable correlation values between the members of the independent variables equal to zero.

To detect the presence or absence multicollinearity in the regression model are as follows:

a. The value of R2 generated by an empirical regression model estimate is very high, but individually many independent variables were not significantly affecting the dependent variable.

b. Analyze the correlation matrix of the independent variables. If there is correlation between the independent variables are quite high (generally above 0,90), then this is an indication of multicollinearity. The absence of a high correlation between the independent variable does not mean free of multicollinearity. Multicollinearity may be due to the combined effect of two or more independent variables. c. Multicollinearity can also be seen from: (1) The value of

tolerance and the opponent; (2) Variance Inflation Factor (VIF). Both these measurements indicate each independent variable which explained by other independent variable. In simple terms each independent variable the dependent

48 variable and regressed against other independent variables. Tolerance measures the variability of independent variables was chosen that are not explained by other independent variable. So a low tolerance value equal to the value of a high VIF (for VIF = 1/Tolerance). Value cutoff commonly used to indicate the presence multicollinearity is the tolerance value < 10 or equal to VIF > 10 (Ghazali, 2011:106).

3. Heteroskedasticity

Heteroskedasticity test was conducted to test whether a regression model occurred inequality residual variance from one observation to another observation remains, and then called heteroskedasticity. If the points spread above and below the number 0 on the Y axis without forming a particular pattern, then there is no heteroskedasticity (Ghozali, 2011: 139).

A good regression model is that homoskesdaticity or did not happen heteroskidastity. Most of the data resection containing situation because this data collect data representing a variety of sizes (small, medium and large).

There are several ways to detect the presence or absence of heteroskedasticity. In this study to see Graph Plot between the predicted values of the dependent variable (dependent) is ZPRED with residual SRESID. Heteroskedasticity detection of the presence

49 or absence can be done by looking at whether there is a specific pattern on a scatterplot graph between SRESID and ZPRED wherein Y is a Y axis that has been predicted, and the X axis is the residual (prediction Y - Y in fact) who have in-studentized. With the analysis if there is a specific pattern of regular (wavy, widened and then narrowed), then identifying been going heteroskedasticity and if there is no clear pattern, as well as the points spread above and below the number 0 on the Y axis, then there is no heteroskedasticity (Ghozali, 2011:139).

F. Hypothesis Test

1. t- Test (Partial Test)

To determine whether the independent variables partially (individual) have a significant influence on the dependent variable. The statistical test T basically shows how far the influence of the independent variables individually in explaining the variation of the dependent variable Ghozali, (2011:98).

The t-test was used to test the partial each variable. T test results can be seen in the table on the column sig coefficient (significance). If the t value or significance probability < 0,05, it can be said that there are significant independent variable on the dependent variable partially.

50 However, if the probability value or significance t > 0,05, it can be said that there is no significant effect of each variable on the dependent variable Besas.

t test formula: to =

Where: to = t value

bi = coefision regression Sbi = standart error

Hypothesis based Significance namely:

a.If the number sig. > 0,05, then Ho is accepted b.If the number sig. < 0,05, then Ho is rejected 2. F – Test (Simultaneous Test)

This test aims to prove whether the independent variables (X) simultaneously (together) have an influence on the dependent variable (Y) (Ghozali, 2011:88).

If F count > F table, then Ho is rejected and Ha accepted, which means that the independent variable has a significant effect on the dependent variable using a significant level of 0,05 if the value of F count > F table then together all independent variables affect the dependent variable. Additionally, you can also see the value of probability. If the probability value less than 0,05 (for a significance level of = 0,05), the independent variables jointly

51 affect the dependent variable. Meanwhile, if the probability value is greater than 0,05, the independent variables simultaneously has no effect on the dependent variable.

Formula F test

F = ⁄ ⁄

Where:

R2 = multiple correlation coefficient squared n = number of sample

Then it will be known whether this hypothesis simultaneously rejected or accepted, while the form of simultaneous hypothesis is: H0 : β1 = β2 = β3 = 0 ; service quality, sales promotion, customer satisfaction simultaneously does not affect the customer loyalty. H0 : β1 ≠ β2 ≠ β3 ≠ 0 ; service quality, sales promotion, customer satisfaction simultaneously influence the customer loyalty.

G. Multiple Linear Regression

1. Similarity Multiple Linear Regression

Analysis method in this research is a multiple linear regression that is used to test service quality, sales promotion and customer satisfaction toward customer loyalty. The equation of multiple linear regressions is as follows:

52 Where:

Y = Customer Loyalty a = Constanta

e = Error sampling X1 = Service Quality X2 = Sales Promotion X3 = Customer Satisfaction β1, β2, β3= Regression coefficient

2. Coefficient of Determination (Adjusted R²)

The coefficient of determination (Adjusted R²) aims to determine how much ability of independent variables and the dependent variable explained to know how big the ability of the independent variable dependent variable explained viewed through Adjusted R² for thorough independent variables in this study of more than two.

In SPSS output, coefficient of determination lies on the table and writing Summary Model Adjusted R². R² value of 1, meaning the influence entirely dependent variable can be explained by the independent variables and no other factors that lead to influence the dependent variable. The coefficient of determination is between zero and one. R² small value means the ability of the independent variables in explaining the dependent variable is very limited. Values close to the mean of independent variables provide almost

53 all the information needed to predict the variation of the dependent variable (Ghozali, 2011:97).

H. Variable Operational Research

Based on the core issues and hypotheses, research on effects of service quality, sales promotion and customer satisfaction toward customer loyalty on Carrefour Lebak Bulus. The variables and indicators of this study can be seen in the table below:

54 Table 3.2

Operational Variable

VARIABLE DIMENSION INDICATOR SCALE

Service Quality (X1)

Lovelock and Wirtz, (2011:

406)

Tangibles 1. Appearance of physical facilities

2. Equipment 3. Personnel

4. Communication materials.

Likert Likert Likert Likert Reliability 5. Ability to perform the

promised service.

Likert

Responsiveness 6. Willingness to help customers 7. Provide prompt service.

Likert Likert Assurance Credibility:

8. Trustworthiness, believability 9. Honesty of service provider. Security:

10.Freedom from dangerous, risk or doubt.

11.Competence: Possession of the skills and knowledge require performing the service.

12.Courtesy: Politeness, respect, consideration and friendliness of contact personnel.

Likert Likert

Likert Likert

Likert

Empathy 13.Access: Approachability and ease of contact.

14.Communications: Listening to the customer and keeping them informed in a language the can understand.

15.Understanding the customer: Making the effort to know customers and their needs.

Likert

Likert

55

VARIABLE DIMENSION INDICATOR SCALE

Sales Promotion

(X2)

 Kotler and Armstrong (2014:

503-504)

 Solomon et. al (2010)

16.Samples to introduce a new product or create new

excitement for an existing one

Likert

17.Coupons are certificates that give buyers a saving when they purchase specified products

Likert

18.Price packs offer consumers savings off the regular price of a product

Likert

19.Premiums are goods offered either free or at low cost as an incentive to buy a product

Likert

20.Point-of-purchase (POP) promotions include displays and demonstrations that take place at the point of sale

Likert

21.Event marketing they can create their own brand-marketing events or serve as sole or participating sponsors of events created by others

Likert

22.Loyalty programs reward consumers for their frequent, continuing purchase of a product

56

VARIABLE DIMENSION INDICATOR SCALE

Customer Satisfaction

(X3)

Thakur and Singh (2012)

Experiences 23.The product good quality 24.Give the good result 25.Price same like quality

Likert Likert Likert Expectation 26.Product selling like my

expectations

27.Result after use the product same like expectations

Likert

Likert

Service Performances

28.Good service performance Likert

Customer Loyalty

(Y) Griffin (2009:31)

29.Makes regular repeat purchase

Likert

30.Purchases across product and service

Likert

31.Refers to others customers willingly recommend the company to friends and colleagues

Likert

32.Demonstrates an immunity to the full of the competition

57

CHAPTER IV

RESULT AND ANALYSIS

A. General Overview Research Object 1. History of Carrefour

The history of Carrefour Indonesia began in October 1998 by opening the first unit in Cempaka Putih. At the end of 1999, Carrefour and Pramodes (Parent Company Continent) agreed to merge all his efforts throughout the world. This merger to form a group of the world largest retail business under the name Carrefour.

With the formation of this new Carrefour, then all the resources owned by the two groups had to be focused to better meet and satisfy customer needs. This incorporation enables to improve market performance benefited from the expertise of employees in Indonesia and in the world and anticipate the evolution of retail in the national and global scale.

The focus on consumers this translates into 3 main pillars, which are believed to be able to make the Carrefour shopping options for consumers Indonesia. These three main pillars are as follows:

a. Competitive prices b. Complete choice c. Satisfactory service

159

H.

Reliability Test Result of Customer Loyalty (Y)

Reliability Statistics Cronbach's

Alpha

N of Items

.887 4

ATTACTHMENT 4

SPSS CLASSICAL ASSUMPTION TEST RESULTS

A.

Normality Test Result in Graph

160

B.

Normality Test Result in Statistic

One-Sample Kolmogorov-Smirnov Test

Unstandardized Residual

N 100

Normal Parametersa,b

Mean 0E-7

Std. Deviation 1.18011892

Most Extreme Differences

Absolute .096

Positive .096

Negative -.062

Kolmogorov-Smirnov Z .956

Asymp. Sig. (2-tailed) .320

a. Test distribution is Normal.

161

C.

Multicollinearity Test Result

Coefficientsa

Model Unstandardized Coefficients Standardized

Coefficients

t Sig. Collinearity Statistics

B Std. Error Beta Tolerance VIF

1

(Constan

t) 7.675 1.695 4.527 .000

x1 .056 .028 .220 2.004 .048 .619 1.614

x2 .110 .045 .234 2.433 .017 .805 1.243

x3 .105 .052 .218 2.013 .047 .636 1.572

a. Dependent Variable: y

162

ATTACTHMENT 5

SPSS HYPOTHESIS TEST RESULTS

A.

Partial Test Result Significance (t Test)

Model Unstandardized Coefficients Standardized

Coefficients

t Sig.

B Std. Error Beta

1

(Constant) 7.675 1.695 4.527 .000

x1 .056 .028 .220 2.004 .048

x2 .110 .045 .234 2.433 .017

x3 .105 .052 .218 2.013 .047

A.

Simultaneous Test Result Significance (F Test)

ANOVAa

Model Sum of Squares df Mean Square F Sig.

1

Regression 55.285 3 18.428 12.831 .000b

Residual 137.875 96 1.436

Total 193.160 99

a. Dependent Variable: y

163

ATTACTHMENT 6

SPSS MULTIPLE LINEAR REGRESSION ANALYSIS TEST RESULTS

Model Unstandardized Coefficients Standardized

Coefficients

t Sig.

B Std. Error Beta

1

(Constant) 7.675 1.695 4.527 .000

x1 .056 .028 .220 2.004 .048

x2 .110 .045 .234 2.433 .017

164

ATTACTHMENT 7

SPSS COEFFICIENT OF DETERMINATION TEST RESULTS

Model Summaryb

Model R R Square Adjusted R

Square

Std. Error of the Estimate

1 .535a .286 .264 1.198

a. Predictors: (Constant), x3, x2, x1