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

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CHAPTER II

LITERATURE REVIEW

2.1 Convenience Store and Retail Industry

The retailing is being more service oriented. Hence, gives various types of experience to the customers as they visit them and specifically in case of grocery products. The experience is the perception which the customers have about the service quality offered by the retailers to them. Different retail formats add to different customers’ experience. The understanding of these experiences is of critical issue for retail managers because it helps them to understand the patronage behaviour also (Mittal, S. nd Gupta, A., 2012).

According to Fram and Axelrod (1990), while people are shopping, it is stressful for them. Whereas Aylott and Mitchell (1999) found that customers associated more stress with grocery shopping than with other forms of shopping. Carpenter and Moore (2006) acknowledged that the changing competitive landscape within the grocery industry makes it critical for retailers to better understand grocery customers. This includes an attempt to examine customer choice with respect to store format and the store attributes that drive that choice.

Therefore, retail industry has a strong ties with modern convenience store, where people can easily find grocery products even the public service.Modern convenience store is a small store which includes all sales 2.1 Convenieennce Store and Retail Industry

The retaailing g is beiingng mmorore seervrvicice e ororiented. Hencce,e, gives various ty

types of eexpx eriencnce to the custotomemers as they vvisisit them m and spececifically in casee oof f grg ocerryy products. The experience is ththe percrcepeptitiono whiichc the cu

custstomo erss have about the service quality offered by thhe e retataillererss to thehem. Di

Dfferrent retail formats add to different customers’ eexpx errieiencce.e. Thehe undderstanding of these experiences is of critical issue for rettail mmananaga ers beecause it helps them to understand the patronage behaviour alsoo (Mittal,, SS. ndd Gupta, A., 2012).

Acccocordrdiningg toto FFrar m annd dAxelroodd (19990)0),,whwhilile e pepeopo le are shopping,g, itt is stressful for them. Whereass Aylott and Mitchell (1999) founndd ththaat cu

c sttomomererss asassosociciatateded mmorore e stress with h grgrococereryy shshopoppipingng tthahan wiwithth oothther fo

formr s of sshohoppppiing.g. CCararpepenterr aandnd Mooorere ((20200606)) acacknk owledgdgeded tthhat the changing competitive landscai appe withihin the grocery industry makes it critical for retailers to better understtand grocerry customers. This includes an attempt to examine customer choicee with rrespect to store format and the store attributes that drive that choice.

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through stores of areas, generally less than 300 sq. meters, which specialize in a limited range of food and grocery products designed primarily for convenience-seeking consumers (Canadean, 2014).According to Anderson (1971, p. 179), convenience-oriented consumption: (1) satisfies some immediate want or need and (2) releases time or energy or both for alternative uses. Marketers are becoming more sensitive to saving consumers’ time and effort by designing convenience offerings, rewarding time spent with marketing (i.e., providing genuine entertainment, significant consumer information, and/or valuable tools from which consumers can benefit), and giving time back to consumers (Smith 2004).

Despite the acknowledged importance of convenience, it has received relative attention in the retailing literature. Most of the studies focus on the convenience orientation of consumers (Anderson, 1972, 1971; Brown, 1989; Bucklin, 1963; Gross and Sheth, 1989; Kelley, 1958; Morganosky, 1986; Nickols and Fox, 1983; Reilly, 1982; Yale and Venkatesh, 1986). These studies view convenience as anything that helps the consumer to reduce its time and effort during their shopping process, but are mostly focused on the product market.

On one hand, the lives of consumers have become more complex with less time for shopping (Bellizzi and Hite, 1986). Additionally, more women are working outside their homes, which means less time to go shopping but more income (Bellante and Foster, 1984; Strober and Weingberg, 1980). Also, more people are living by themselves in smaller families and even convenience-seeking consnsumumers (Canadadeaean, 2014).According to Anderson (1971, p. 179)9), convenience-oriented consumpptitiono : (1) satisfies some immediatate want or need andnd (2)2 rrelleaeaseses stimem or energy or boboth for alternative ussees. Marketers aare e bebecoming more sensititivve e toto ssavaving consumerers’ time and effort bby y ded signiningg convenience offerings, rrewardidingng ttimime spenent with ma

markrketetiing ((i.e., providing genuine entertainment, sisgnifificcanant t coc nsumumer in

infoformmaation, and/or valuable tools from which consumers cac n bebenenefit), annd givinng time back to consumers (Smith 2004).

Despite the acknowledged importance of convenience, ithhas receivevedd reelative attention in the retailing literature. Most of the studies fofocus onon thehe co

convn enience orieentntatatioionn ofof consumers ((AnAndedersrsonon, 191 72, 1971; BrBrowown, 198989;9; Bucklin, 1963; Gross and Shehethth, 191989; Kelley, 1958; Morganosky, 19198686; Ni

Nickc ols and Fox, 1983; Reilly, 1982; Yale and Venkatesh, 198986)6).. ThTheese studdiies view coni onveveninience ass ananytythihingng tthhat heh lplpss ththe e consumer to rereduducce its ti

timeme and eefffforortt during their sshoh pping gpprocess, but aree mmostly yfofocucused on the product market.

On one hand, the livess of consuumers have become more complex with less time for shopping (Bellizzizi andd Hite, 1986). Additionally, more women are working outside their homes which means less time to go shopping but

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alone (Yale and Venkatesh, 1986).All these conditions have led consumers to look for new ways to simplify their lives in a modern and stressful environment.

Buying time refers to purchasing certain types of products or services which can then be substituted for time (Berry, 1979). Time can be bought and sold in the marketplace in the form of convenience products (e.g., frozen dinners, disposable cleaning products, and ready-to-eat cereals), convenience services (e.g., child care, meal delivery, household cleaning services, and lawn care), and convenience durables (e.g., dishwashers, refrigerators, freezers, microwaves, stoves, washers, and dryers). One of the primary motivations behind purchasing convenience products, services, and durables is to save time. No true time savings exist in that time saved in the past (unlike money saved in the past) cannot be accessed for use in the future (Wilson and Holman 1984).

Regarding the effect of price on store choice, although some research has found a positive relationship between monetary price and perceptions of product quality (Dodds et al., 1991). This may be explained because consumer’s responses to low prices may vary depending on the product category and retail format. Furthermore, consumer’s perception of product and service quality is also found to be positively related to the store patronage (Baker et al., 2002; Darley and Lim, 1993; Sirohi and McLaughlin, 1998; Zeithaml and Berry, 1996).

environment.

Buyinggttimime refers to purchasing certain typpese of products or services which cacann then be substituteted fofor rtiimeme((BeBerrrry, 1979). Timeeccan be bought and sooldld in the markrkettpplaca e in the form of cononveveninienence products (e( .g., frozen dinnerrs,s, ddisspop sable e clcleaning products, and readydy-to-eatt ccerereaealsl ), convevenience seervrvicicese (e..gg., child care, meal delivery, household cclel anini g g seservrvici es, and la

lawn ccare), and convenience durables (e.g., dishwasherers, rrefefririggeratorsrs, freezzers, microwaves, stoves, washers, and dryers). One off thee ppririmmary mootivations behind purchasing convenience products, services, aand dud rablleses is to save time. No true time savings exist in that time saved in thee passt (u

(unnlike money y sasavevedd inin ttheh past) cannoott bebe aaccccesessed for use inin tthe futtururee (Wilson and Holman 1984).

Regarding the effect of price on store choice, although soomme rreseseaearrch has ffoundd a poosisititiveve relationsnshihip p bebetwtweeen monenetataryrypprice ai nd perced ceptptioions of pr

prododuct ququalalitity (Dodds et al., 199911). This may bbe e expplaiainenedd because consumer’s responses to loow prices mmay vary depending on the product category and retail format. FFurthermoore, consumer’s perception of product and service quality is also found dto bbe positively related to the store patronage (Baker et al 2002; Darley and LLim 1993; Sirohi and McLaughlin 1998;

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Consumers perceptions of convenience is found to have a positive effect on their satisfaction with the service provided (Berry et al., 2002). In a retailing context, although there is no one clear definition of a convenience store, for the purpose of this paper we will define it as a small, centrally located store, featuring ease of access, late-night hours, and a limited line of merchandise, and that charges above-average prices compared to large supermarkets that generate large volume sales. Only a limited number of academic papers have specifically investigated the c-store industry (Lassk, 2000; Rapp and Islam, 2006; Sparks, 2000; Sutton and Rafaeli, 1988; Welsh et al., 2003; Worthington, 1989). This research suggests series of attributes that are salient for providing customer satisfaction with c-stores, such as customer service, cleanliness of the store, feelings of personal safety, appearance of the store and employees, and product assortment.

Access convenience concerns the speed and ease with which consumers can reach a retailer. It considers attributes such as accessible location, parking availability, store hours, proximity to other stores, and telephone and internet access. The speed and ease that consumers can make contact with retailers powerfully influence their retail choices. Empirical evidence shows that easy accessibility has a high correlation with the choice of a shopping centre (Bellenger et al., 1977). In addition to a convenient location, other convenience incentives provided by retailers, such as longer operating hours or ample parking, can draw patrons to a store (Hansen and Deutscher, 1977).

retailing context, althougughh ththere is no onone e clear definition of a convenience store, for the ppuurpose of this paper we will deffininee it as a small, centrally located ststore, featuring eassee ofofaacccesess,s, llate-e night hours, andnd a limited line of me

merchandise, andnd tthahat charges above-aveeragage e pprices comparered to large supermmararkeketsts that gegenerate large volume saleles.s. Only y aa lilimimted numbm er of accadadememic ppaapers have specifically investigated the c-s-stot re indndusustrtry y (Lasassk, 20

20000; RRapp and Islam, 2006; Sparks, 2000; Sutton and Raffaeaeli, 19198888; Welssh h et aall., 2003; Worthington, 1989). This research suggests serieess off aattttriribub tes thaat are salient for providing customer satisfaction with c-storres, such ass cuustomer service, cleanliness of the store, feelings of persoonal saafetyy, ap

appep arance of thheeststororee anandd employees, aandndpproroduductct assortment.

Access convenience ccooncecerrns the speed and ease with whwhicichh co

consn umers can reach a retailer. It considers attributes such aass accecesssibible locatiion, parkinking g avavailabililityty,, ststororee hohours, proroxiximimityty tto othther sttororeses, and te

telelephphone anandd iinternet accesss. The spepeed and ease ththatat cconsumemersrs can make contact with retailers poweerfully influuence their retail choices. Empirical evidence shows that easy acccessibilityy has a high correlation with the choice of a shopping centre (Bellengeger ett al., 1977). In addition to a convenient location other convenience incentnives provided by retailers such as longer

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A convenient location is one which minimizes consumer time and effort associated with traveling to the store (Jones, Mothersbaugh, and Beatty 2003). In searching for a convenient location, retailers should look for a location that is easy to get to, near to most consumers, and located near other frequently visited stores (Seiders, Berry, and Gresham 2000). Access convenience provides place utility--the benefit and value of having the product available at a place where consumers want or need it. By selecting a convenient location, retailers are ensuring that the consumer can get to the store (and the product) in a quick and easy manner. One aspect of access convenience which is often challenging is finding a parking space after arriving at the store’s location.

Search convenience is the speed and ease with which consumers identify and select products they wish to buy. This dimension considers helping consumers find the right products through focused merchandising, intelligent store design and layout, knowledgeable sales persons, customer interactive systems, and visual merchandising practices, especially product displays, packaging, and signage. One study found that when shopping at convenience stores, customers want courteous and helpful clerks, but not too friendly so that they don’t engage in extended conversations (Sutton and Rafaeli, 1988). Other literature suggests that consumer’s evaluations of the store atmosphere also affects their perceptions of value and their store patronage intentions (Grewal et al., 2003).

2003). In searching for aa convenient llococation, retailers should look for a location that iss eeasy to get to, near to most consummerers, and located near other frequenttlyly visited stores (SSeieided rsrs, , BeB rrryy, and Greshamam 2000). Access coonnvenience provovididess place utility--the bebenenefifit t aand value ofof having the producuct t avavaiaillable atataa place where consumerswanwa t or nneeeed d itit. By sellece ting a coonvnvenenient llocation, retailers are ensuring that the connsus mer cacan n geg t too the st

stoore (a(and the product) in a quick and easy manner. One asa pectct oof accesss convvenience which is often challenging is finding a parkinng g sppacace e after arrriving at the store’s location.

Search convenience is the speed and ease with which consuumerrs id

ideentify and sellecectt prprododucucts they wishh ttoo bubuyy. TThis dimensioonn considdererss helping consumers find the rigighth pprroducts through focused merchanddisisiningg, in

intet lligent store design and layout, knowledgeable sales personsns, cuusstomomer interactitive syststememss, and visisuauall memercrchahandisingg prpracactitices, especiallly y prprooduct di

dispsplaysy , papackckaging, and siggnan ge. Onne study foundd ththatat when n shshopping at convenience stores, customeers want couurteous and helpful clerks, but not too friendly so that they don’t engage inn extended conversations (Sutton and Rafaeli, 1988). Other literaturee suggggests that consumer’s evaluations of the store atmosphere also affects thheir perceptions of value and their store

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Possession convenience is the speed and ease with which consumers can obtain desired products. It results from a retailer’s strong in-stock position, timely production or timely delivery. One stop shopping offers consumers possession convenience by bringing together a vast variety of goods and services in one store. (Bianchi, C., 2009) The literature supports this and several studies have found that merchandise assortment is positively related to retail store choice (Arnold et al., 1983; Koelemeijer and Oppewal, 1999; Louviere and Gaeth, 1987), and is found in some cases even more important than price for store choice (Stassen et al., 1999). Also included within the scope of search convenience are effective interactive customer systems, product displays, and helpful salespeople. Allowing consumers to see and easily find the merchandise they desire is a sure way to speed up and simplify the shopping experience.

Transaction convenience refers to the speed and ease with which consumers can effect or amend transactions. Once the consumers selects a store, and selects the products they want to purchase, they still must participate in a transaction to complete the purchase. Transaction convenience concerns how quickly and easy it is to do the business with a firm, and considers attributes such as different payment methods, quick service, well trained employees, and well-designed service systems. Time savings elements for consumers such as fast checkouts are also found to influence their retail choice (Lambert, 1979).

position, timely producttioionn or timely dedelivery. One stop shopping offers consumers posssseession convenience by bringing ttogogether a vast variety of goods anandd services in one stsoro e.e. ((BiBiananchc i,i, C., 2009) The lliterature supports thisis and several sstuuddiese have found that mererchchanandidisse assortment t isi positively related d toto rretetail stororee choice (Arnold et al., 198983;3; Koelelememeijijeer and OOppp ewal, 19

199999; ; LLouvvieiere and Gaeth, 1987), and is found in somome caasesess eveven mmore im

impporttaant than price for store choice (Stassen et al., 1999)9). Allsoso iincludeed withhiin the scope of search convenience are effective interacctit ve ccusustotomer syysstems, product displays, and helpful salespeople. Allowing cono sumers ttoo seee and easily find the merchandise they desire is a sure way to sppeed uupp andd si

simmplify the shoppppiningg exexpeperirence.

Transaction conveniencce e rerefefers to the speed and ease with whwhicichh co

consn umers can effect or amend transactions. Once the consumemersrs selelecectsts a store, and seld elecectsts tthhe produductctss theythey want toto ppuru hchase, tthhey ststililll must pa

partrticipate inp inaa transaction to coc mpletee the purchase.TTraransn actiononccoonvenience concerns how quickly and easy it is to do the business with a firm, and considers attributes such as ddifferent ppayment methods, quick service, well trained employees, and well-desisgneded service systems. Time savings elements for consumers such as fast checkkoouts are also found to influence their retail

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In addition, consumers also enjoy talking to salespeople, and seek a social experience outside their home, thus this may drive some shoppers to stores in which they find friendly salespeople (Tauber, 1972). In fact a one study found that there is a positive correlation between consumer’s perceived warmth of the service clerk and perceived quality and loyalty to the store (Lemmink and Mattsson, 1998). Schmitt (2003) contends that consumers want to be sold on more than just attributes; they want to be entertained, stimulated, emotionally affected and creatively challenged. In order to appeal to the emotions of the consumer, the experience must be conveyed. Grewal, Dhruv, Julie , Michael and Glenn. (2003), Understanding and enhancing the customer experience is important, most marketing executives in consumer packaged goods, manufacturing and retailing fields consider it important and thus an area for academic research.

2.2Adolescent’s Perception on Modern Convenience Store

Modern convenience stores are increasingly numerous, led to increase the culture of consumptive especially among the adolescents. For them, shopping at the modern convenience store has its own prestige value compared to buying in a conventional store. The presence of modern convenience store is pretty heavy competition for small shops in several areas. The diversity of types of goods and its freshness makes a lot of adolescent prefer to shop at the modern convenience stores. It is not stores in which they find d frfriiendly salesspepeopople (Tauber, 1972). In fact a one study found thatat there is a positive correlation betweween consumer’s perceived warmth oof the service clerrk k anand d pepercrceieveed d quality and loloyay lty to the store (LLeemmink and MMatattsssos n, 1998). Schmiittt (20200303)) contends thahat t consumers want tto o bebe sold onon more than just attributes;; tht ey wwaant t toto be entetertained, st

stimimululaated, ,eemotionally affected and creatively challenggede . InI oordrderertto apppep al to

to tthe eemotions of the consumer, the experience must be coonveyyeded.. Grewalal, Dhruruv, Julie , Michael and Glenn. (2003), Understanding and ene haancnciningg the cuustomer experience is important, most marketing executives ini consummerr paackaged goods, manufacturing and retailing fields consider it immportantnt andd th

thuus an area foraacacadedemimiccreresearch.

2.22Adolescent’s Perception on Modern Convenience Store M

Moddernnccononvvenienceesstotoreress arareeiincreasinginglylynnumerous,lledtto o ininccrease th

thee culturee ofof consumptive especialllly among the adadololescentnts.s. FFor them, shopping at the modern cconveniencee store has its own prestige value compared to buying in a conventioonal store. The presence of modern convenience store is pretty heeavy competition for small shops in several areas The diversity of types off goods and its freshness makes a lot of

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impossible, if more modern convenience stores are existing, the conventional one will be out of business.

On the one hand, culture of consumptive among adolescent has a positive impact, due to the increased level of consumption, which will improve the economic growth for Indonesia as well. Given that adolescents are unable to drive independently, they may be restricted to areas in their home and school neighborhood(s) to which they can walk or bike. Therefore, youths may be particularly captive to environmental opportunities around their home and school (Heet. al 2012).

According to Seok and Sauls 2008: female and male buyers show significant differences in their purchase attitudes (trust in purchase, awareness of the fashion brands, awareness of prices, tendency to buying from home, awareness of time well-being, tendency toward planned purchase). Also, it was determined that purchase biases among age groups are different. Although, trust in purchase had the highest score among men and women as well as among all age groups. It was revealed that female respondents paid more attention to well-being in shopping and price than men do.

Gender plays a major role in consumer behavior, since men and women have different expectations, demands, needs and life styles and these differences affect their shopping behavior. Gender has different aspects and it is not just a variable in market dividing. There are a lot of differences in attitudinal and behavioral aspects of women and men and they lead to different behaviors in buying goods and services. (Bakashi, 2012).

On the one hand,d, cculture of coconsnsumptive among adolescent has a positive impacct,t, due to the increased level off ccono sumption, which will improve e tthe economic groowwth h for for InIndodonenesisa as well. Givenen that adolescents arree unable to drdrivive e independently, they main may y bebe rrestricted to aarer as in their home aandndsschchool neneigighhborhood(s) to which theheyy can waalklkoor r bibke. Thhere efore, yo

yoututhshs mayay be particularly captive to environmental l opo porttununititieies arouound th

theeir hoome and school (Heet. al 2012).

According to Seok and Sauls 2008: female and malee buyeyersrs sshow siggnificant differences in their purchase attitudes (trust in purchasee, awareneesss off the fashion brands, awareness of prices, tendency to buying fromm homeme, aw

awareness of timmee wewellll-b-beieng, tendencycy towtowarardd plplanned purchaasese)). Also,o, itt was determined that purchasese bbiaiases among age groups are diffefererentnt. Al

Altht ough, trust in purchase had the highest score among men anndd woomemen n as we

w lll as among g alalll agage groupsps.. ItIt wwasas rrevealedd ththatat ffemalel respondedentntss paid mo

morere attentitionon to well-beingiin nshoppiinng and price thahann mem n do.

Gender plays a majjor role in consumer behavior, since men and women have different expecttations, deemands, needs and life styles and these differences affect their shoppinngg behahavior. Gender has different aspects and it is not just a variable in market dividing There are a lot of differences in

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16 2.3 Customer Loyalty

The positive relationship that modern convenience store can build with their customer will affect the customer loyalty. The customer will do the repetition to come over to that modern convenience store. From a company’s perspective, one goal of introducing loyalty programs in times of severe competition is to increase or at least maintain customer loyalty for important (e.g., profitable) customers. Loyalty programs function as switching barriers that have been shown to influence customer loyalty positively (Evanschitzky and Wunderlich 2006; Jones at al. 2000; Patterson and Smith 2003). 1992). Therefore, some researchers assume that company-loyal customers will develop positive intentions; however, high levels of company loyalty might not necessarily lead to higher purchase behavior (Evanschitzky et. al. 2011).

Commitment is a key antecedent of company loyalty (Beatty and Kahle 1988; Evanschitzky et al. 2006). Kelley 1959). Commitment has also been extensively researched in the consumer behavior domain because of its proposed role in leading to important outcomes such as psychological attachment (Verhoef 2003), personal identification (Garbarino and Johnson 1999), and increased price tolerance (Delgado-Ballester and Munuera-Aleman 2001). The concept of commitment is defined by Moorman and colleagues (1992, p. 316) as “an enduring desire to maintain a valued relationship.” If customers desire to maintain a relationship, we would expect them to be company loyal.

with their customer will aaffffeect the customomere loyalty. The customer will do the repetition to coomme over to that modern convenienceesstore. From a company’s perspecttivive, one goal of iintnroroduducicingng lloyyalaty programs inin times of severe coommpetition is to o inncrcreease or at least maintaiain n cucuststoomer loyaltyfforo important (e.g., pprorofiftatabble) cusustotomers. Loyalty programs funfu ction n ass sswiwtching bbarriers th

thatat hhava e bebeen shown to influence customer loyalty posositiivelly y (E(Evavansn chititzky anndd WuWunderlich 2006; Jones at al. 2000; Patterson and Smmitih 2000303)). 1992)2). Thererefore, some researchers assume that company-loyal cuustommerers s willl deevvelop positive intentions; however, high levels of company looyalty migghth noot necessarily lead to higher purchase behavior (Evanschitzky et. al. 20111).

Commitmementnt iiss aa kek y antecedeentnt ooff cocompmpany loyalty (B(Beatty anandd Kahle 1988; Evanschitzky et alal.. 2000606). Kelley 1959). Commitment hass alalsso be

beene extensively researched in the consumer behavior domain beecacaussee ofof its pr

p oposed rd ole l inin lleeading ttoo imimpoportrtanant outctcomomeses suchh as psyychchololoogical at

attatachmentnt ((VeVerhoef 2003), ppersonal iidentification ((GaGarbrbarino anandd Johnson 1999), and increased pricce tolerancee (Delgado-Ballester and Munuera-Aleman 2001). The concept t of commmitment is defined by Moorman and colleagues (1992, p. 316) as “ann enduring desire to maintain a valued relationship ” If customers desiretto maintain a relationship we would expect

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Moreover, a professional business will concern on the quality of employee service to drives the customer loyalty. A good quality of employee service in a company would create satisfaction for its customers. Once customers are satisfied with products or services they received, customers will compare with services provided. If consumers feel completely satisfied, they will provide recommendations to others to buy in the same place. Therefore, companies should start thinking more about the importance of employee service through the quality service, because from now on it recognize that employee service and customer satisfaction is a vital aspect in the last the world of business to win the competition (Tjiptono, 2006).

Tjiptono (2006) said, the success in the competition will be met if the company can create and retain the customers. In order to achieve these objectives so the company requires having different efforts then later achieving the planned objectives. There are 6 reasons why a company needs to get loyalty customers (Kotler, Hayes and Bloom, 2002; in Kotler, 2004):

a. There are more prospective customers, meaning that loyal customers will give great benefit to a company.

b. The cost of acquiring new customers is much greater than the guard and retain existing customers.

c. Customers who already believe in the institution in an affair will also believe with other matters.

d. Operating costs will be efficient if the company has many loyal customers.

service in a company wwououlld create sasatitisfaction for its customers. Once customers are sasatisfied with products or services ththey received, customers will commpare with servicess prorovivdeded.d. IIf f coonsn umers feel comompletely satisfied, theey will providide e rereccommendations to oththererss toto buy in the sas me place. Therefeforore,e, ccompaniniees should start thinking mmorore abouout t ththee importrtana ce of emmplployoyee sseervice through the quality service, becaausu e frf omom nnowo oonn it reeccognnizize that employee service and customer satisfaction isis a vititalalaaspect inin the lalast the world of business to win the competition (Tjiptono,22006)6)..

Tjiptono (2006) said, the success in the competition will bbe met if ththee coompany can create and retain the customers. In order to achhieve tthese ob

objej ctives so ththee cocompmpanany y requires hhavaviningg didiffferent effortss ththen lataerer achieving the planned objectiveses. ThThere are 6 reasons why a company neneededs to

togget loyalty customers (Kotler, Hayes and Bloom, 2002; in Kotllerer, 20200404):): a. ThThere are e momorre prosppecectitiveve ccusustotomers, memeananining ththatt lloyal ccusustotomers

will ggivivee great benefit toto a compapany.

b. The cost of acquiring nnew custommers is much greater than the guard and retain existing customerrs.

c. Customers who already bbelievve in the institution in an affair will also believe with other matters

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e. Company can reduce psychological and social costs due to existing customers have had many positive experiences with company.

f. Loyal customers will always defend the company even trying also to interesting and give advice to others to become customers.

Despite the importance of customer loyalty on the one hand, and gender differences on the other hand, little is known about the existence and nature of gender differences in customer loyalty. This is surprising because if male and female loyalties differ, men and women might require a different selling approach, have different levels of customer value, and may respond differently to loyalty programs and other actions aimed at enhancing customer loyalty.

Common stereotypes, perhaps based on widely publicized findings showing that males exhibit lower levels of sexual loyalty than females (e.g., Blumstein and Schwartz 1983; Hansen 1987), suggest that females are more loyal customers than males.Another finding was discover by Ndubisi N. O 2006, who stated that female customers are significantly more loyal than their male counterpart when the bank is deemed very trustworthy. Only the trust-loyalty relationship is moderated by gender.

f. Loyal customers wiwillll always defefendnd the company even trying also to interestinngg and give advice to others to becommeecustomers.

Despite ththee immportance of customere lloyoyalalty on the onnee hand, and gendderer ddififferencceses on the other hand, little iiss knowwnn ababouout the exexistence an

and d natuurere of gender differences in customer loyalaltyty. ThThisis iis s sus rpririsisng b

becaauuse if male and female loyalties differ, men and wommene mmigightht requirre a ddifferent selling approach, have different levels of custommer vavaluluee, andd m

may respond differently to loyalty programs and other actioons aiimed aat enhancing customer loyalty.

Commonn ssteterereototypypese , perhaps babasesedd onon wwidely publicizzeded findingngss showing that males exhibit llowowerrllevels of sexual loyalty than femaless((e.e.gg., Bl

Bumstein and Schwartz 1983; Hansen 1987), suggest that fefemaaleless aare morelloyal cusl ustotommers than nmamaleles.s.AnAnoother fifindndiningg waw sdidiscover bby y NdNdubisi N.

N. O 2000066, who stated thatat female ccustomers are sisigngnificantltlyy mmore loyal than their male counterpaart when thhe bank is deemed very trustworthy. Only the trust-loyalty relatiionship is moderated by gender.

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19 2.4 Research Hypotheses

According Sugiono (2002: 39) research hypothesis is the answer while to the formulation of research problems. Said to be temporary, because answers given should be based on the theory that are relevant, yet based on empirical facts obtained through data collection.

Based on the framework of theories about several variables and related theories above, the writer formulates some hypotheses as follows:

H1: The variables on the atrributes of Indomaret will positively affect the customer’sloyalty.

H2: Male and female will perceive the attributes from Indomaret differently.

H3: Male and female will purchasingthe products from Indomaret differently.

H4: Male and female will using the services from Indomaret differently.

H5: Male and female will perceive the customer’s loyalty of Indomaret differently.

to the formulation of reresesearch probllemems.s Said to be temporary, because answers given shshould be based on the theory thatt aarer relevant, yet based on empiricaall facts obtained thrrououghgh datata a cocollecection.

Based onn tthehe framework of theoririeses aabobout several vvara iables and related d ththeoeoriries abooveve, the writer formulates someme hypotothehesesessas followws:

H1: Thhe variables on the atrributes of Indomaret will posisitivelyly aafffect thhe custtoomer’sloyalty.

H2: Male and female will perceive the attributes from Indomaretddifferentntly.

H3: Male and female will purchahasingngthe products from Indomaret differenentltlyy.

H4:MMale andl d fefemamalele will ussining g ththe e seservrviices frf omom IIndndomarettddififferentntlyly.

H5: Male and female will l perceive tthe customer’s loyalty of Indomaret differently.

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2.2Adolescent’s Perception on Modern Convenience Store

Modern convenience stores are increasingly numerous, led to increase the culture of consumptive especially among the adolescents. For them, shopping at the modern convenience store has its own prestige value compared to buying in a conventional store. The presence of modern convenience store is pretty heavy competition for small shops in several areas. The diversity of types of goods and its freshness makes a lot of adolescent prefer to shop at the modern convenience stores. It is not stores in which they find d frfriiendly salesspepeopople (Tauber, 1972). In fact a one study found thatat there is a positive correlation betweween consumer’s perceived warmth oof the service clerrk k anand d percperceieveed d quality and loloyay lty to the store (LLeemmink and MMatattsssos n, 1998). Schmiittt (20200303)) contends thahat t consumers want tto o bebe sold onon more than just attributes;; tht ey wwaant t toto be entetertained, st