Antecedents of Tourism Destination Image and Customer Satisfaction in Tourism Industry

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  European Research Studies Journal Volume XX, Issue 3A, 2017

pp. iii-xii

  ERSJ, Vol. XX, Issue 3A, 2017 Guest Editor:

Professor Dr. Ramona Rupeika-Apoga, Professor of Finance, Chair,

Department of Finance and Accounting, Faculty of Business, Management

and Economics, University of Latvia, Latvia Guest Co-Editor:

Professor Dr. Tulus Suryanto, Akt., CA., Professor of Accounting and

Auditing, The State of Raden Intan Lampung Islamic University, Indonesia

Guest Editorial Board Members:

Jean Pierre Allegret, Professor of Economics, University of Paris X Ouest -

Nanterre La Défense, France

Anca Bandoi, Ass. Professor of Economics, University of Craiova, Romania

Theologos Homer Bonitsis, Ass. Professor of Finance, School of

Management, New Jersey Institute of Technology, Newark, NJ, USA

Agnieszka Brelik, Professor of Economics, West Pomeranian University of

Technology of Szczecin, Szczecin, Poland

Slawomir I. Bukowski, Professor of Economics, Deputy Rector, Kazimierz

Pulaski University of Technology and Humanities in Radom, Poland

Pavla Breckova, Ph.D. Ing. Professor of Management, Head of Management

Department, Faculty of Economic Studies, University of Finance and

Administration, Czech Republic

Tatiana V. Epifanova, Professor Dr. of Economic Sciences, Rostov State

University of Economics, Russia

  

European Research Studies Journal, Volume XX, Issue 3A, 2017

iv

Andees Faíña, Professor of Economic Analysis, European Chair Jean

Monnet in European Industrial Economics, Department of Economic

Analysis, University of Coruña, Spain Jesus Andree Filipe,

  Professor of Economics, Instituto Universitário de Lisboa (ISCTE-IUL), Portugal

Hardy Hanappi, Professor of Political Economy, Ad Personam Jean Monnet

Chair for Political Economy of European Integration, IWM- Economics,

Technology University of Vienna, Austria

Christis Hassapis, Professor of Finance, Department of Economics,

University of Cyprus, Cyprus

Spyros Makridakis, Emeritus, Professor of Econometrics, Rector Neapolis

University of Pafos, Pafos, Cyprus

John Malindretos, Editor TIJF, Professor of Finance, CC College of

Economics, Finance & Global Business, William Paterson University, New

Jersey, USA Vera Palea, Ph.D. in Economics, Università Degli Studi di Torino, Italy

  

Statty Stattev, Dr. Sc. Professor of Macroeconomics, Rector of the

University of National and World Economy, Bulgaria

Ileanna Tache, Professor of Economics, Vice Dean, Ad Personam European

Chair Jean Monnet, Faculty of Economic Sciences, Transylvania University

of Brasov, Romania

Eleftherios I. Thalassinos, Professor of International Economics, European

Chair Jean Monnet, Director Jean Monnet Centre of Excellence, Editor ERSJ,

  IJEBA, IJMTEI, Chair ICABE, University of Piraeus, Greece

Natalia G. Vovchenko Professor Dr. of Economic Sciences, Vice Dean,

Rostov State University of Economics, Russia Joachim Zentes,

  Professor Dr. Dr. H.C. Director H.I.MA. Institutfür Handel & Internationales Marketing, Saarland University, Germany

  

Guest Editor, Ramona Rupeika-Apoga and Guest Co-Editor Tulus Suryanto

v

  Guest Editor’s Note Professor Ramona Rupeika-Apoga

I have been asked by the Editor-in-Chief of ERSJ to act as Guest Editor for

this volume on the occussion of the 20th anniversary of the Journal. I

accepted the invitation with great pleasure working with a team of distinquist

colleagues from several countries on the preparation of the issue.

All articles were selected based on specific criteria set by the Guest

Editorial Board, appointed for this issue of the European Research Studies

Journal in accordance with the Code of Ethics and the Basic Requirements

for Publication that have been adopted by the Journal since its circulation in

1998.

As the Guest Editor of this volume I am very thankful to the members of the

Editorial Board consisting of 19 colleagues from 14 different countries. I

am also thankful to the Guest Co-Editor Professor Dr Tulus Suryanto and

the Editor-in-Chief of ERSJ Professor El Thalassinos for their effective

cooperation in the preparation stage of this volume. For the successful

completion the Guest Editorial Board has followed the double blind method

in the evaluation process of each article according to their professional and

academic experience.

In this issue of ERSJ we have published several articles selected among

others after a peer evaluation by the Guest Editorial Board members. It is in

the intention of the Journal to take opportunities disseminating scientific

research from colleagues from all over the world. We strongly believe that

some of the publications are of high quality with innovative ideas that can be

adopted easily for the benefit of the economies they are referred to.

  Professor Dr. Ramona Rupeika-Apoga Chair, Department of Finance and Accounting Faculty of Business, Management and Economics University of Latvia

  

European Research Studies Journal, Volume XX, Issue 3A, 2017

vi ERSJ Editor’s Note th

ERSJ celebrates its 20 anniversary in 2017 with the publication of issues

dedicated to international conferences, special events, economic and business

themes and more.

  

Selected articles have been included in this issue covering economic and

business disciplines after an extensive evaluation procedure set by the Guest

Editorial Board.

  

I would like to take this opportunity to express my sincere thanks to all the

members of the Board for their collaborative behavior, especially to the

Guest Editor Professor Ramona Rupeika-Apoga for her cooperation in the

preparation of this issue. It is also my pleasure to cooperate with a new

colleague from Indonesia the Guest Co-Editor Professor Dr. Tulus

Suryanto, Akt., CA., reviewer and editor in many journals for his effective,

productive and professional involvement, his valuable coordination regarding

the collection of the articles, his generosity to reply to my e-mails every time

I had a problem, question or comment with the evaluation process and the

texts. Their intervention was always valuable and very helpful.

  

It was a great honor for me to cooperate with all the authors, to read all

the articles getting a very good understanding of the content, the conclusions

and the methodology used in each one of the articles where I had an interest.

  

Recommendations and conclusions included in the published articles could

be of great importance in case they were adopted by the corresponding

bodies.

  

After 20 years of publication experience I would like to congratulate my

cooperatives from several countries for their valuable comments and their

help in the circulation of ERSJ.

  Professor El Thalassinos European Chair Jean Monnet

  

Guest Editor, Ramona Rupeika-Apoga and Guest Co-Editor Tulus Suryanto

vii

  ERSJ Volume XX, Issue 3A, 2017 Contents:

  

1. Exchange Rate Volatility and Export Volume: The Case of Indonesia and

its Main Trading Partners S. Safuan ……………………………………………………………………………………3-13

  

2. The Concept of Convergent Development of Rural Areas of the Russian

Federation

M. Afanasova........................................................................................................14-38

  3. The Mathematical Model of the Law on the Correlation of Unique Competencies with the Emergence of New Consumer Markets

A.A. Chursin, R.V. Shamin, L.A. Fedorova...........................................................39-56

  4. Access to Finance for Latvian SMEs R. Rupeika-Apoga, I. Solovjova..........................................

  ……………………….57-68

  5. The Function of Financial Services Authority (FSA) in Dispute Settlement Banking Customers in Indonesia24 Zulfi Diane Zaini ……………………………………………………………………….69-81

  6. The Role of Shared Leadership and Work Environment in Strengthening the Influence of C ompensation on Nurse’s Performance

Armanu Armanu….……………………………………………………… ……………..82-95

  

7. Situation and Development Opportunities of Creative Industries Companies

in Latvia

M. Dunska, A. Marcinkevica…………………………………………………………96-114

  8. The Measuring of the Spiritual Tourism in Regions of South Kazakhstan

A.Kuralbayev, N. Abishov, A. Abishova, G. Urazbayeva……………………….115-133

  

9. Foreign Experience of Regulation of Migration Processes by the Example of

the Migration Policy of Canada

Y.I. Prytkova……………....................................................................................134-142

10.

  Evaluation of Perception of Accountant’s Role at the Enterprise in Latvia and Lithuania

  

I.Bruna, K. Senkus, R. Subaciene, R. Sneidere.................................................143-163

  11. Poverty Reduction Models: Indonesian Agricultural Economic Approach

  

European Research Studies Journal, Volume XX, Issue 3A, 2017

viii

  

12. Assessing Incentive and Monitoring Schemes in the Corporate Governance

of Maltese Co-operatives P.J. Baldacchino, C. Camilleri, S. Grima, F.H. Bezzina …….………………….177-195

  13. Management Compensation and Auditor Reputation on Earnings Management and on Share Returns

  

F. Farichah......................................................................................................196-208

  

14. Consequences of Going Concern Opinion for Firms and Capital Market

with Accounting Firm Size as Moderation Variable

D. Hapsoro........................................................................................................209-230

  15. Favourable Tax Regimes that Constitute Selective State Aid from the Perspective of the Cjeu Recent Case Law

  

I.Būmane, D.Vodolagins…………………………………………………………….231-245

  16. Solvency Evaluation, Comparing Traditional Financial Situation

Assessment Methods with Information from Cash Flow Statements, Using Data

from Insolvent Companies in the Republic of Latvia D. Steinberga, I. Millere …………………………………………………………….246-258

  

17. Implementaion the International Financial Reporting Standards IFRSs as a

Moderating Variable of the Relationship of Corporate Governance with Earnings Management

  

A. Komalasari...................................................................................................259-277

  

18. Leadership Styles, Motivation Achievers and Quality in Cultural Teaching

S. Patimah.........................................................................................................278-290

  

19. The Risk Assessment Method in Prognostic Models of Production Systems

Management with Account of the Time Factor L. Mylnikov, M. Kuetz ………………………………………………………………..291-310

  20. Clustering in Education

A.Rahmat...........................................................................................................311-324

  21. Formation of Human Resource Management System in Organizations

  V.Y. Morozov, Y.V. Murashova, T.N. Lustina, A.G. Panova, V.A. Danilova …325-337

  

22. Scientific Cooperation between Russia and the EU in the Development and

Use of Large Research Infrastructure G.V. Prytkov, N.Y. Tsvetus, A.A. Balyakin, A.S. Malyshev, S.B. Taranenko ….338-353

  23. Networking Quality and Trust in Professional Services

  

Guest Editor, Ramona Rupeika-Apoga and Guest Co-Editor Tulus Suryanto

ix

  24. Food Security of Russia in the Context of Import Substitution G.M. Zinchuk, M.Ye. Anokhina, A.V. Yashkin, S.A. Petrovskaya ……………….371-382

  25. ASEAN Tourism Marketing Communication Attribute: An exploratory Research at Goaseantv

Arisetyanto Nugroho………………………………………………………………….383-395

  

26. Analysis of the Macroeconomic Impact towards the NPL National Banking

in Indonesia: The Study of Macro-Economic Shock Using Vector Autoregression Models

M. Ekananda.....................................................................................................396-416

  27. How to Improve Brand Equity in Tourism

S.V. Riorini........................................................................................................417-434

  

28. Antecedents of Tourism Destination Image and Customer Satisfaction in

Tourism Industry

T. Teviana, P. Ginting, A.N. Lubis, P. Gultom.................................................435-445

  

29. Analogy of Law in the Mechanism for Increasing Authorized Capital of a

Limited Liability Company Viktor A. Mikryukov ………………………………………………………………….446-457

  30. Preparing Consolidated Financial Statements in Accordance with IFRS

S.A. Issakova, A.Sh. Moldabekova, M.T. Kenzhebayeva, V.N. Alibekova, G.T.

  

Tuleyeva……………………………………………………………………………….458-469

  31. Reflexive Governance of Import Substitution Mechanism in Clusters

B.G. Khairov, D.T. Novikov, T.A. Prokof’yeva, I.O. Protsenko,

S.M. Khairova..................................................................................................470-483

  32. The Organization of the Innovation Transfer in the Agro-industrial Complex of Russia

M.Y. Veselovsky, P.P. Pilipenko, V.G. Savenko, A.G. Glebova, L.A.

  

Shmeleva...........................................................................................................484-499

  

33. Analysis of Antecedent and Consequence of Employee Engagement in Small

and Medium-Sized Enterprises in Central Java, Indonesia

S. Handayani, A.I. Anggraeni, Andriyansah, Suharnomo, E. Rahardja..........500-510

  34. Commodity Prices, Exchange Rates and Investments o n Firm’s Value Mediated by Business Risk: A Case from Indonesian Stock Exchange

A.Risman, U. Salim, S. Sumiati, N.K. Indrawati...............................................511-523

  

European Research Studies Journal, Volume XX, Issue 3A, 2017

x

  35. Analysis of Auditor Performance by Using Covariance Based Structural Equation Modeling: A Study of Public Accounting Firms in Indonesia

Y. Sunyoto, I. Ghozali, A. Purwanto.................................................................524-537

  36. Preventing Corruption in the Indonesian Public Sector

J. Sriyana, H.Y. Prabowo, M. Syamsudin…………………………………………538-553

  37. Relationship between Servant Leadership in Organizational Culture, Organizational Commitment, Organizational Citizenship Behaviour and Customer Satisfaction

Retno P. Setyaningrum.....................................................................................554-569

  

38. Implications of Tax Receivables and Retribution for the Economic Growth

of Indonesia R. Bratamanggala ……………………………………………………………………570-579

  

39. Influence on local government performance: Budget Participatory, Budget

Control and Organizational Structure Working Procedures of Dysfunctional

Behavior Rustam Effendi ………………………………………………………………….........580-593

  40. Isolating Mechanism as a Mean to Improve Performance of SMEs

Hasyim, Sahyar, Mahmud.................................................................................594-612

  41. Improving Business Performance: A Proposed Model for SMEs

Endi Rekarti, C.M. Doktoralina........................................................................613-623

  42. Contribution of Private Fund Managers to the Accumulation of Pension Capital of the Second Tier Latvian Pension System in 2012-2016 L. Bule, L. Leitane ……………………………………………………………………624-634

  43. The Influence of Financial Knowledge, Control and Income on Individual Financial Behavior A.Z. Arifin …………………………………………………………………………......635-648

  44. Analysis of the Relevance of Educational Programs for Applicants and the Labor Market E.E. Nakhratova, I.Yu. Ilina, A. I. Zotova, O.A. Urzha, N.V. Starostenkov …..649-659

  

45. How Financial Sector and Social Overhead Capital Determine GDP Growth

Cicih Ratnasih………………………………………………………………………...660-672

  

46. The Role of Criminal Law Politics against Ambush Marketing Behavior in

the Implementation of ASEAN Community

  

Guest Editor, Ramona Rupeika-Apoga and Guest Co-Editor Tulus Suryanto

xi

  

47. The Effect of Supervisory Board Cross-Membership and Supervisory Board

Members' Expertise to t he Disclosure of Supervisory Board’s Report: Empirical Evidence from Indonesia

  Iskandar Muda ……………………………………………………………………….691-705

  48. Comparative Study on Consumer Protection in Indonesia through Mechanism of Product Liability Insurance

Hamzah.............................................................................................................706-716

  49. Analysis Banking Role to Performance Improvement on Indonesia Small Medium Enterprises

  

H. Esti Riwayati................................................................................................717-728

  

50. Studying Effectiveness of the European and Eurasian Economic Union Food

Safety Legislation M.T. Nurgaliyeva, Zh.A. Iskakova, L.A. Mamayeva, V.S. Zhamurova,

  Attevon

  Wright, A.K. Smagulov ……………………………………………………………...729-747

  51. Improving Anticipative Learning through Entrepreneurial Orientation in Small to Medium Size Enterprises Meutia, Tubagus Ismail and Nurul Ummi ……………………………………….748-757

  52. Impacts of Export Development on Unemployment in Indonesia Yolanda ……………………………………………………………………………….758-773

  

53. Factors Influencing Opportunity Driven Nascent Entrepreneurs in Europe

and Asia

S. Tripopsakul…………………………………………………………………………774-782

  

54. The Impact of Trust-Distrust toward Quality of Life: The Case of Poor and

Non Poor Household In Indonesia

Rizal E. Halim...................................................................................................783-801

55.

  ICT Industry’s Challenge in Latvia

S. Balina, K. Rozite, I. Steinbuka......................................................................802-814

  56. Factors Impacting the Low Usage of e-Services in Latvia S. Balina, J. Skilters, D. Baumgarte, L. Zarina …………………………………..815-824

  

57. The Role of Co-Creation Activities, Trust and Gender on Higher Education

Marketing Performance

Y. Sutarso, R.E. Halim, T.E. Balqiah, P. Tjiptoherijanto.................................825-845

  58. Banking Business Models of the Digital Future: The Case of Latvia

  

European Research Studies Journal, Volume XX, Issue 3A, 2017

xii

  59. Implementation of Pricing the Corporate Value in Indonesia

Fauzie Yusuf Hasibuan.....................................................................................861-873

  60. Minus Margin Agreements as a Violation of Business in Business Competition in Indonesia

Hasbi.................................................................................................................874-889

  61. Design Building of Indonesian Politics Economic

Suhandi Aziz......................................................................................................890-904

  62. The Factors Affecting the Profitability of Banks: The Case of Latvia

Kristina Bojare, Inna Romanova......................................................................905-919

  63. Productivity and its Impact on the Competitiveness of Latvia

R. Skapars, S. Jekabsone, J. Priede, I. Skribane..............................................920-930

  64. Evaluation of Latvia –China Trade Potential

J. Priede, H. Feng ............................................................................................931-941

65.

  Assessing the Role of Latvia’s Participation in Indo-EU Value Chains

   V. Garde, V.P. Karnups ……………………………………………………………942-960

  66. Fintech as Financial Innovation – The Possibilities and Problems of Implementation S. Saksonova, I.Kuzmina-Merlino ……………………………………………….....961-973

  

67. Tourism Enterprise Cooperation Specifics: Comparative Study of Riga and

Novosibirsk Travel Agencies K. Berzina, I. Medne, M. Tsoy ……………………………………………………..974-988

  68. Should I stay or should I go? Human Resource Information System Implementation in Indonesian Public Organizations

M. Ikhwan Maulana Haeruddin........................................................................989-999

  European Research Studies Journal Volume XX, Issue 3A, 2017 pp. 435-445

  

Antecedents of Tourism Destination Image and Customer

Satisfaction in Tourism Industry

  1

  2

  2

  2 Tengku Teviana , Paham Ginting , Arlina Nurbaity Lubis , Parapat Gultom Abstract:

  

Marketing mix has largely adapted as antecedents for analyzing the marketing performance

in many sectors. However, it applicability in tourism sector has not been explored well. This

research aims to analyze customers’ satisfaction on tourism destination in order to increase the number of tourists visiting in Indonesia.

This novelty is reviewed in depth with relevant theoretical studies and tested in empirical

research conducted on how managing marketing mix in tourism sector to boost the number of

tourists to visit a destination.

Model testing conducted using Structural Equation Modelling (SEM). By taking 350

respondents with purposive sampling technique, the results showed that tourism actors

capable of improving marketing mix is able to improve customer satisfaction in tourism

industry.

  Keywords: marketing mix, customer satisfaction, image creation, destination design, consumer loyalty.

1 PhD Student in Management, at Universitas Sumatera Utara, and lecturer at Faculty of

  

Economics and Business, Medan State University, Jalan Willem Iskandar Pasar V, Medan

2 Estate, Sumatera Utara, Indonesia, Tel. +62616613365, ema

Faculty of Economics and Business, Universitas Sumatera Utara, Jl. Abdul Hakim, Padang

Bulan, Medan Baru, Kota Medan, Sumatera Utara 20222, Indonesia, Tel. +62618211638.

  

Antecedents of Tourism Destination Image and Customer Satisfaction in Tourism Industry

436 1.

   Introduction

  The role of tourism in boosting state revenues is the most important aspect to analyze. This paper attempts to analyze the antecedents of tourism marketing. Experts have given various definitions of tourism marketing. According to Krippendorf (1987), tourism marketing is a systematic and coordinated execution of business policy by tourist undertaking whether private or state owned by local, regional, national and international level to achieve the optimal of satisfaction. Wahab, et al. (2001) state that the term tourism marketing is a management process execute by national tourism organizations or companies.

  Tourist desire to travel and tourists is a potential from the side of tourism organization by communicating with them, affecting their wants, needs, and motivation, and by providing tourist objects and attractions for tourists to obtain optimal satisfaction. The tourism sector in North Sumatra, Indonesia has the opportunity to grow with the enactment of the ASEAN Economic Community. This is in line with international organizations including the UN, the World Bank and the World Tourism Organization (WTO), which recognizes that tourism is an integral part of human life, especially with regard to social and economic activities. The problem raised in this research is how to build new theoretical approach to analyze the influence of marketing mix on destination image and customer loyalty in tourism industry. This research proposes a new concept that is customized network capability based on the basic theory in the field of management that is Resources Based View (RBV) theory.

2. Services Marketing Mix

  Service is an activity or benefit that offers by one party to another and does not result in ownership transfer. Services are intangible, inseparable, fluctuating and not durable. Each characteristic has a problem and requires a strategy (Cotirlea, 2011; Keisidou et al., 2013; Giannakopoulou et al., 2016; Faizova et al., 2015; Ryzhkova and Prosvirkin, 2015; Srimuk and Choibamroong, 2014). In service marketing, the strategic approach directed at the ability of marketers to find ways to realize the intangible increase the productivity of inseparable providers of the product, create quality standards with respect to variability, and influence the movement of demand and supplier capacity. In general, service-marketing strategies applied in the overall corporate context, requiring not only external marketing, but also internal marketing to motivate employees and interactive marketing to create service provider expertise.

  Zeithaml, Bitner and Gremler (2006) describe the marketing mix as elements that can controlled by the organization capable of being able to satisfy and communicate with customers. These elements will be the key decision variables in each marketing plan. Marketing mix strategy consists of product strategy, pricing strategy, distribution strategy and promotion strategy (Kotler and Armstrong, 2012).

  

T. Teviana, P. Ginting, A.N. Lubis, P. Gultom

437

  and used properly, so that companies can achieve marketing objectives effectively, as well as satisfying the needs and desires of consumers. Marketing mix is a tool for marketers by exploring various elements of marketing program to implement the marketing and positioning strategy (Lupiyoadi, 2009). Perreaul and McCarthy (2002) classify the marketing mix, particularly goods, consisting of four variables in terms of product, price, place and promotion. Particularly in the context of ecotourism services, the four variable factors considered inadequate. Thus, marketing experts add three more factors in terms of people, process, and physical evidence (Lupiyoadi, 2009; Payne, 2005; Liapis et al., 2013; Thalassinos and Dafnos, 2015; Akopova et al., 2017; Frank et al., 2016).

  3. Destination Image

  Essentially, tourist attraction comprises all elements possessed of a place that attracts visitors. These elements include landscapes for viewing, activities to follow, and experiences to remember. However, it is sometimes difficult to distinguish between attraction and not attractiveness. Transportation, accommodation, and other services can be integral part of attraction attributes. Mcintosh et al. (1995) state that every tourist destination has a certain image to a destination that contains beliefs, impressions and perceptions. According to Lawson and Band Bovy (1977) (as cited in Mathison and Wall, 1982), the image is an expression of all the knowledge, impression, prejudice, imagination and emotional outlook that a person or group has toward a particular object or place.The image of a destination is an important part for tourists and stakeholders. According to Fakeye and Crompton (as cited in Chen and Tsai, 2007), the image of the destination is a picture of thoughts, beliefs, feelings and perceptions of a destination. Calantone, et al. (2003) state that the image of the destination is the perception of potential tourists to a destination. Gartner (2003) states that the image of the destination is the perception of the complex combination of the various products and related attributes. The formation of the image of tourist destinations according to Tocquer and Zins in Lopes (2011) examines the influence of perceptions on tourists related to a particular purpose, and the grouping of images into four stages of formation, that are vague and realistic image, distortion of image, improved image, and resulting image. The image of tourist destinations is a reflection of the tourist attraction that consumers perceived.

  4. Customer Loyalty

  Griffin (2007) provides an understanding of loyalty by stating that when a customer is loyal, he or she exhibits purchase behavior as a non-random purchase expressed over time by some decision-making. Hence, marketers must be able to increase awareness from first-time customers into lifetime’s customers with the occurrence of purchase. This also will increase as consumers will buy more from the company, and strengthen the company's position in the market. Marketing costs will go down

  

Antecedents of Tourism Destination Image and Customer Satisfaction in Tourism Industry

438

  satisfied consumers will likely tell their friends that in turn will reduce the cost of advertising. Companies can isolate from price competencies because loyal customers did not affected by discounts from competitors. Eventually, satisfied customers will be happy to try other company products, thus helping the company to gain a wider market share. Kotler and Keller (2013) reveal the indicators of customer loyalty, in terms of repeat purchase or loyalty to product purchases; retention or resilience to negative influence of company; referral behavior (totally references the company's essence). Foumier and Mick (2003) suggest that satisfaction, dissatisfaction, and complaints are the result of the consumer buying decision process. Satisfaction and dissatisfaction represent positive, neutral, or negative feelings that arise after purchase. Consumer complaints are a clear expression of dissatisfaction. Consumer satisfaction is the focus of marketing concepts and the dominant cause of consumer loyalty. The characteristics of loyal customers are making regular repeat purchase, purchasing across product and service, referring other products, and demonstrating in immunity to the pull of the competition.

  4.1 Relationship between Marketing Mix and Destination Image

  A good tourist destination should be able to provide tourist facilities in accordance with the needs of visitors to provide convenience and fulfill their needs during the visit. Kotler and Keller (2009) states that the facility is everything that deliberately provide by service providers to use and enjoy by consumers providing the maximum level of satisfaction. When tourist facilities can provide maximum satisfaction to the visitors, it will be a good base for them to re-visit in the future and their willingness to tell positive things to others. Dahmiri (2010) states that marketing mix variables affect the image on a positive way. Thus, this following hypothesis is proposed:

  

Hypothesis 1: There is positive effect of marketing mix's capability on destination

image.

  4.2 Relationship between Marketing Mix and Customer Satisfaction

  The satisfaction of tourists encourages them to be loyal to a destination by making re-visit and willing to recommend tourist destinations to others. According to Oliver (1997) loyalty is an in-depth customer commitment to re-subscribe or re-purchase products or services consistently in the future, even though the influence of the marketing situation and efforts has the potential to cause behavioral change. All elements of marketing mix, product and promotion have a very strong effect on the satisfaction of tourists. Furthermore, Owomoyela et al. (2103) reveal that all elements of the marketing mix have a significant effect on customer satisfaction.

  Hypothesis 2: Marketing mix's capability positively affects consumer satisfaction.

  

T. Teviana, P. Ginting, A.N. Lubis, P. Gultom

439

  4.3 Relationship between Marketing Mix and Consumer Loyalty

  A successful marketing program can be seen from its ability to satisfy the wants and needs of consumers. The combination of marketing mix elements is created to jointly meet customer satisfaction. Previous research shows a variety of findings in which not all elements of the marketing mix affect satisfaction. How the marketing mix affects consumer satisfaction greatly influence by other factors including the type of product or service offered and the characteristics of the respondents. Widyawati (2006) indicates that service marketing mix variables significantly influence consumer loyalty. Setiawardi et al. (2013) reveal that partially that product, price, place, promotion variables, and physical facility and employee variables have no significant effect on customer loyalty, while the significant influence on customer loyalty is the process variable. Al Muala et al. (2012) show that the product has a significant effect on destination loyalty, while prices, people and processes have no significant effect on destination loyalty.

  

Hypothesis 3: There is a positive relationship between marketing mix capability and

consumer loyalty.

  4.4 The Impact of the Destination Image on Destination Loyalty

  Consumer's point of view of the relationship between the destination image and the consumer behavior of the destination plays a role in the buying and satisfaction behavior. The image of the destination is the impression of tourists in general to a tourist destination. The image of the destination plays an important role in understanding the behavior of tourists in traveling. Gunn and Mercer (2009) state that image formation before the trip is the most important phase in the process of choosing a tourist destination. Moreover, the image perceived after the visit will also affect consumer satisfaction and intensity to make visits in the future, depending on the ability of tourist destination