The Analysis of Customer Satisfaction in 'House of LIN' Bandung With Importance-Performance Analysis.

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ABSTRACT

Saat ini, banyak industri jasa berkembang di Indonesia, salah satunya adalah jasa salon. Pihak salon perlu memberikan kualitas pelayanan yang terbaik agar tercipta kepuasan pelanggan, sehingga mereka dapat bersaing dengan para pesaing lainnya. Dengan berkembangnya bisnis salon, maka saya tertarik untuk meneliti mengenai kualitas jasa House of LIN Bandung. Penelitian ini bertujuan untuk menemukan persentase pelanggan yang merasa puas dan mengetahui tindakan yang perlu dilakukan House of LIN berdasarkan penilaian pelanggan terhadap berbagai elemen dari kumpulan jasa House of LIN.

Penelitian ini dilakukan dengan menyebarkan kuesioner kepada 100 orang responden yang sedang mengkonsumsi jasa House of LIN. Karakteristik individu yang digunakan antara lain: jenis kelamin, usia, pekerjaan, asal tempat tinggal, dan frekuensi mengkonsumsi jasa House of LIN. Metode pengumpulan data yang digunakan adalah metode survey. Sedangkan metode analisis data yang digunakan adalah importance-performance analysis yang didukung oleh pengukuran rata-rata (mean descriptive statistic measurement). Variabel operasional dalam penelitian ini didasarkan pada penelitian Parasuraman, Zeithaml, dan Berry yaitu kualitas pelayanan, sedangkan sub variabel yang digunakan yaitu: keandalan, daya tanggap, kepastian, empati, dan berwujud (dikutip dari Kotler 440).

Hasil analisis kepuasan pelanggan menunjukkan bahwa 5% pelanggan House of LIN merasa tidak puas, 6% merasa puas, dan 89% merasa sangat puas akan kualitas pelayanan yang diberikan oleh House of LIN. Sedangkan untuk empat actions yang perlu dilakukan House of LIN, menjelaskan lima item yang berada di quadrant A perlu ditingkatkan (concentrate here). Tujuh item yang berada di quadrant B perlu dipertahankan (keep up the good work). Enam item yang berada di quadrant C dapat dikesampingkan (low priority). Empat item yang berada di quadrant D dapat dikurangi (possible overkill).


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TABLE OF CONTENT

Page

ABSTRACT ... i

DECLARATION OF ORIGINALITY ... ii

PUBLICATION APPROVAL PAGE ... iv

PREFACE ... vi

TABLE OF CONTENT ... viii

LIST OF TABLES ... x

LIST OF FIGURES ... xi

LIST OF APPENDIX ... xii

CHAPTER I INTRODUCTION 1.1 Background of the Study ... 1

1.2 Identification of the Case ... 4

1.3 Objectives of the Study ... 4

1.4 Limitation of the Study ... 5

1.5 Layout of the Thesis ... 5

CHAPTER II THEORETICAL REVIEW 2.1 Service Comprehension ... 6

2.2 Service Quality ... 8

2.3 Customer Satisfaction ... 9

2.4 Salon as Service Company ... 10

2.5 Research Method ... 11

2.5.1 Research Population and Sample ... 11

2.5.2 Sampling Method ... 11

2.5.3 Method of Data Collection ... 12 2.5.4 Operational Variable and Data Analyze


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Method ... 13

CHAPTER III FINDINGS AND DISCUSSION OF THE STUDY 3.1 Respondents Characteristic ... 16

3.1.1 Respondents Characteristic Based On Gender ... 17

3.1.2 Respondents Characteristic Based On Domicile ... 17

3.1.3 Respondents Characteristic Based On Occupation ... 18

3.1.4 Respondents Characteristic Based On Age ... 19

3.1.5 Respondents Frequency in Consume Service Given by House of LIN ... 20

3.2 Customer Satisfaction Analysis ... 21

3.3 Means Importance-Performance Analysis ... 22

3.4 Discussion ... 24

CHAPTER IV CONCLUSION AND SUGGESTIONS 4.1 Conclusion ... 33

4.2 Research Limitation ... 35

4.3 Suggestions ... 35

4.3.1 For the Company... 35

4.3.2 For the next research ... 36


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LIST OF TABLES

Page

Table 3.1 Respondents’ Characteristics Based on Gender ... 17

Table 3.2 Respondents’ Characteristics Based on Domicile ... 17

Table 3.3 Respondents’ Characteristics Based on Occupation ... 18

Table 3.4 Respondents’ Characteristics Based on Age ... 19

Table 3.5 Respondents’ Frequency to Consume Service Given by House of LIN ... 20

Table 3.6 Customer Satisfaction Analysis ... 21

Table 3.7 Mean Importance Analysis ... 23

Table 3.8 Mean Performance Analysis ... 24


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LIST OF FIGURES

Page Figure 2.1 Importance-Performance Analysis Map ... 14 Figure 3.1 Importance-Performance Map Based on Means of Direct


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LIST OF APPENDIX

Appendix 1 Research confirmation from the owner of House of LIN Appendix 2 Questionnaire Format

Appendix 3 SPSS Calculation: Gender, Domicile, Occupation, Age, Frequency

Appendix 4 SPSS Calculation: Descriptive Statistic Importance- Performance

Appendix 5 SPSS Calculation: Customer Satisfaction Analysis Appendix 6 Direct Interview Format


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CHAPTER I

INTRODUCTION

1.1 Background of the Study

Service quality is one of the service company strategies(Kotler 91) which creates a long term beneficial relationship between customers and the companies (Tjiptono 115). When a company is able to deliver good service quality to its customer, customer satisfaction will be established (Gerson qtd. in Arief 169). If

customers feel satisfied, they will be loyal both to their selection and the company.

Beside that, Kotler says that eventhough a company already has loyal customers,it still needs to satisfy its loyal customers to prevent them from switching to the competitors. If they switch to the

competitors, it will be hard for the company to attract new customers, especially in terms of costs (49). Lele, qtd. in Arief says customer loyalty will make the company win the competition so in the long term the company can increase its benefit (213). Thus, it can be

concluded that service companies need to give attention to the service quality in order to create customers’ satisfaction. Customers’


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satisfaction will create a beneficial long term effect to the companies, which is customer loyalty.

Since service quality and customers’ satisfaction are important, it is advisable for a company to measure customer satisfaction regularly (Kotler 48). One of the ways to measure customer satisfaction is by using service quality dimensions or SERVQUAL (Parasuraman, et al. qtd. in Tjiptono and Chandra 145). A

SERVQUAL dimension is an evaluation of a measure differentiation between the value given by customer for each statement in relation with expectation and performance. This operation is formulated in: SERVQUAL score = performance score – expectation score (Zeithaml, et al., qtd. in Tjiptono, Chandra 157).

Based on the criteria, Parasuraman, et al. determine the

percentage of satisfied customers to the services given by the service company. If the service performance is below the customers’

expectation they will feel upset or dissatisfied. In contrast, if the service performance meets or is higher than the customers’ expectation, they will be satisfied (qtd. in Tjiptono, Chandra 157). Moreover, Parasuraman, et al. say that there are five dimensions which can be used by customers to evaluate service quality: reliability, responsiveness, assurance, empathy and tangibility (qtd. in Kotler 440). Parasuraman, et al. explain that reliability is used to evaluate the performance and dependability of a company; responsiveness is used to evaluate employees readiness to offer the service needed by customers; assurance is used to evaluate employees knowledge,


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good manners, and their ability to create customers’ trust; empathy is used to evaluate company’s attention to understand customers’ problems; and tangibility is used to evaluate the physical appearance of the company (qtd. in Tjiptono 134).

In this research the object is a salon because nowadays, a competition in salon business in Bandung is getting tighter. New salons are established both for middle up class and lower class people. There are new salons opened, because salon is a business with a good prospect (Idris et al. 1). The observation takes place in House of LIN which is located at Jl. Jenderal Sudirman No 818 Bandung. I choose House of LIN as an object to observe because according to the owner, Tan Hay Lin, the number of customers who visit House of LIN increases from 1984 to 2008 (see Appendix 1). Beside that, their old customers are loyal to use the service given by House of LIN although many new salons are appearing. Therefore, it can be concluded that service quality, which is a strategy to satisfy customers, has already been applied by House of LIN to maintain its loyal customers. Based on those facts, I am interested to observe the service quality performed by House of LIN to make their customers feel satisfied and stay loyal to use the service given by House of LIN. Based on the explanation the importance of service quality and customer satisfaction, I am interested in doing a research in a salon. The title for the research is: “The analysis of customer satisfaction in House of LIN Bandung with importance-performance analysis”.


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1.2 Identification of the Case

Based on the background, there are three cases that I am going to analyze:

1. What is the percentage of satisfied customers?

2. What is the rate of various elements of House of LIN service quality by customers through importance-performance analysis? 3. What are the actions that House of LIN should take after they find

out the rate of the various elements of service quality (concentrate here, keep up the good work, possible over kill, low priority)?

1.3 Objectives of the Study

The objectives of this research are:

1. To know the percentage of satisfied customers.

2. To analyzethe rate from each element of House of LIN service quality through importance-performance analysis.

3. To suggest the actions required by House of LIN after they find out the rate of the various elements of service quality (concentrate here, keep up the good work, possible over kill, low priority).

1.4 Limitation of the Study

I would like to focus my discussion on elements to measure service quality (tangibility, assurance, empathy, responsiveness, and reliability)that House of LIN does to make its customers feel satisfied


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with the salons. I do some interviews and observations, also distribute questionnaires to collect data that support my research.

1.5 Layout of the Thesis

This thesis starts with the Abstract, a concise summary of the entire paper in Indonesian. This abstract is followed by the Preface, in which acknowledgements are given to those contributing and involving in the work. After that is the Table of Contents and the Appendices, followed by its four chapters: Chapter I, Introduction to the study consisting: Background of the Study, Identification of the Case, Objectives of the Study, Limitation of the Study, and Layout of the Thesis.

Chapter II, Theoretical Review, contains basic theories or concepts related to the Case Study. Chapter III, Findings and

Discussion of the study, includes ways of collecting data, information or data gathered and discussion of important findings. Chapter IV, Conclusion, has a major statement that is made along with some suggestions or implication for further study. Following the Conclusion is Bibliography, where the references used for the study are


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CHAPTER IV

CONCLUSION AND SUGGESTIONS

4.1 Conclusion

This research analyzes about the percentage of satisfied

customers in House of LIN and the rate from each elements of House of LIN service quality. Through this research it can be known whether the service given by House of LIN is already equal with or higher than what customers expect and in the end it can satisfy customers. Based on the result of the analysis, House of LIN can know what aspects need to be improved, maintained, reduced, and possibly over killed to support its business.

This research focuses on House of LIN customers and takes the sample of 100 respondents who are consuming House of LIN

services. The indicators used are from the research of Parasuraman, Zeihaml, and Berry, which is adopted by Kotler about service quality attributes: reliability, responsiveness, assurance, empathy, and

tangibility. The data analysis method used is importance-performance analysis supported by mean descriptive statistic measurement.


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Based on the result, 5% of House of LIN customers feel

dissatisfied, 6% of House of LIN customers feel satisfied, and 89% of House of LIN customers feel very satisfied. Therefore, it can be concluded that each House of LIN service quality attribute is located in quadrant A, B, C, and D. Quadrant A (concentrate here) is a quadrant that explain the service quality attributes that House of LIN need to improve. The indicator numbers are: modern facility (point 1), attractive physical facilities (point 2), employees’ tidiness (point 3), employees’ knowledge to answer customers’ questions (point 17) and understand customers’ specific needs (point 22).

Quadrant B (keep up the good work) is a quadrant that explains the good service quality that House of LIN needs to maintain. The indicator numbers are: give an accurate service (point 7), employees willing to give the accurate of information services (point 10),

employees willing to give quick service (point 11), help customer’s problems and requests (point 12) although they are busy (point 13), employees’ behavior that make customers trust them (point 14), and employee smile and speak politely (point 16).

Quadrant C (low priority) is a quadrant that explains House of LIN should put aside each service quality attribute. The indicator numbers are: service information; brochure; look interesting (point 4), safety in doing a transaction with House of LIN (point 15), House of LIN gives individual attention (point 18) and employees give customers


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is convenient (point 19), and House of LIN gives priority to customers’ importance (point 21).

Quadrant D (possible overkill) is a quadrant that explains the service quality attributes that House of LIN need to reduce. The indicator numbers are: House of LIN do a prompt service (point 5) and willing to provide its services at the time it promises to do so (point 8), House of LIN shows a sincere interest in solving your problem (point 6), and House of LIN insists on error-free records (point 9).

4.2 Research Limitation

This research is done by taking a salon in Bandung randomly because of the time limitation. House of LIN is chosen because it is because House of LIN is a salon in Bandung which has existed for quite a long time and also the owner permits me to do a research about the service quality performed by House of LIN to its customers.

4.3 Suggestions

4.3.1 For the Company

Based on the explanation from my research and my conclusion there are two suggestions that I can offer. First, if House of LIN wants to satisfy its customers, it needs to maintain good service elements in quadrant B. Then if House of LIN wants to improve the customer satisfaction and prevent its loyal customers from switching to the competitors, or provide switching barriers, it needs to improve the


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service quality elements in quadrant A then maintain the good service quality in quadrant B. Next, if House of LIN wants to equip the

switching barriers it needs to improve the service quality elements in quadrant A then maintain good service quality in quadrant B. Then it can do service quality elements in quadrant C. Later, to minimize unnecessary costs and efforts, House of LIN can omit the service quality elements in quadrant D.

Secondly, as the operational suggestion, House of LIN should add the number of employees and equipments for example: hair wash vessels, tables, chairs and hair dryers so the customers can be served faster. The colour of the employees’ uniform should be different from day to day to make the employees fresher. Moreover, House of LIN needs to improve the skills of each employees in using guidelines and also to provide training. House of LIN should follow the development of the needs and expectations from every customer.

4.3.2 For the next research

It would be better for the next research to do a pre-survey first to know the level of brand awareness from customers about service company brand especially salon. The objective of this pre-survey is to know the salon brand that will be used as the object research.


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Maranatha Christian University

BIBLIOGRAPHY

BOOKS:

Arief, Muhtosim. Pemasaran Jasa dan Kualitas Pelayanan. Malang: Bayumedia Publishing, 2006.

Cooper, Donald R., and Pamela S. Schindler. Business Research Method. 6th ed. Singapore: McGraw-Hill, 1998.

Dictionary of Contemporary English. Longman, 2001.

Kotler, Philip. Marketing Management. New Jersey: Prentice-Hall, Inc., 2000.

Musselman, Vernon A., and John H. Jackson. Pengantar Ekonomi Perusahaan. 9th ed. Jakarta: Erlangga, 1996.

Sekaran, Uma. Research Methods for Business (A Still-Building Approach). 3rd ed. New York: John Wiley & Sons, Inc., 2000.

Sugiyono, Prof. Dr. Statistika untuk Penelitian. Bandung: CV Alfabeta, 2005.

Tjiptono, Fandy, Yanto Chandra, and Anastasia Diana. Marketing Scales. Yogyakarta: ANDI, 2004.

Tjiptono, Fandy, and Gregorius Chandra. Service, Quality, and Satisfaction. Yogyakarta: ANDI, 2005.

Tjiptono, Fandy. Perspektif Manajemen dan Pemasaran Kontemporer. Yogyakarta: ANDI, 2000.


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Maranatha Christian University Zeithaml, Valarie A., A. Parasuraman, and Leonard L. Berry. Delivery Quality Service: Balancing Customer Perceptions Expectations. New York: The Free Press, 1990.

ELECTRONIC PUBLICATIONS:

Idris, Omar, et al. “Peruntungan Membisniskan Stres.” Kontan No. 6, Tahun X. 7 November 2005 <www.kontan_online.com>.

“Jasa.” Wikipedia Indonesia: Ensiklopedia Bebas Berbahasa Indonesia. 11 Februari 2008. <http://id.wikipedia.org/wiki/Jasa>.

“Online Dictionary.” Dictionary: WordNet. 2008.


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CHAPTER IV

CONCLUSION AND SUGGESTIONS

4.1 Conclusion

This research analyzes about the percentage of satisfied

customers in House of LIN and the rate from each elements of House

of LIN service quality. Through this research it can be known whether

the service given by House of LIN is already equal with or higher than what customers expect and in the end it can satisfy customers. Based on the result of the analysis, House of LIN can know what aspects need to be improved, maintained, reduced, and possibly over killed to support its business.

This research focuses on House of LIN customers and takes the sample of 100 respondents who are consuming House of LIN

services. The indicators used are from the research of Parasuraman, Zeihaml, and Berry, which is adopted by Kotler about service quality attributes: reliability, responsiveness, assurance, empathy, and

tangibility. The data analysis method used is importance-performance analysis supported by mean descriptive statistic measurement.


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Based on the result, 5% of House of LIN customers feel

dissatisfied, 6% of House of LIN customers feel satisfied, and 89% of

House of LIN customers feel very satisfied. Therefore, it can be

concluded that each House of LIN service quality attribute is located in quadrant A, B, C, and D. Quadrant A (concentrate here) is a quadrant that explain the service quality attributes that House of LIN need to improve. The indicator numbers are: modern facility (point 1), attractive physical facilities (point 2), employees’ tidiness (point 3), employees’ knowledge to answer customers’ questions (point 17) and understand customers’ specific needs (point 22).

Quadrant B (keep up the good work) is a quadrant that explains the good service quality that House of LIN needs to maintain. The indicator numbers are: give an accurate service (point 7), employees willing to give the accurate of information services (point 10),

employees willing to give quick service (point 11), help customer’s problems and requests (point 12) although they are busy (point 13), employees’ behavior that make customers trust them (point 14), and employee smile and speak politely (point 16).

Quadrant C (low priority) is a quadrant that explains House of LIN should put aside each service quality attribute. The indicator numbers are: service information; brochure; look interesting (point 4), safety in doing a transaction with House of LIN (point 15), House of LIN gives individual attention (point 18) and employees give customers


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is convenient (point 19), and House of LIN gives priority to customers’ importance (point 21).

Quadrant D (possible overkill) is a quadrant that explains the service quality attributes that House of LIN need to reduce. The indicator numbers are: House of LIN do a prompt service (point 5) and willing to provide its services at the time it promises to do so (point 8), House of LIN shows a sincere interest in solving your problem (point 6), and House of LIN insists on error-free records (point 9).

4.2 Research Limitation

This research is done by taking a salon in Bandung randomly because of the time limitation. House of LIN is chosen because it is because House of LIN is a salon in Bandung which has existed for quite a long time and also the owner permits me to do a research about the service quality performed by House of LIN to its customers.

4.3 Suggestions

4.3.1 For the Company

Based on the explanation from my research and my conclusion there are two suggestions that I can offer. First, if House of LIN wants to satisfy its customers, it needs to maintain good service elements in quadrant B. Then if House of LIN wants to improve the customer satisfaction and prevent its loyal customers from switching to the


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service quality elements in quadrant A then maintain the good service quality in quadrant B. Next, if House of LIN wants to equip the

switching barriers it needs to improve the service quality elements in quadrant A then maintain good service quality in quadrant B. Then it can do service quality elements in quadrant C. Later, to minimize unnecessary costs and efforts, House of LIN can omit the service quality elements in quadrant D.

Secondly, as the operational suggestion, House of LIN should add the number of employees and equipments for example: hair wash vessels, tables, chairs and hair dryers so the customers can be served faster. The colour of the employees’ uniform should be different from day to day to make the employees fresher. Moreover,

House of LIN needs to improve the skills of each employees in using

guidelines and also to provide training. House of LIN should follow the development of the needs and expectations from every customer.

4.3.2 For the next research

It would be better for the next research to do a pre-survey first to know the level of brand awareness from customers about service company brand especially salon. The objective of this pre-survey is to know the salon brand that will be used as the object research.


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BIBLIOGRAPHY

BOOKS:

Arief, Muhtosim. Pemasaran Jasa dan Kualitas Pelayanan. Malang: Bayumedia Publishing, 2006.

Cooper, Donald R., and Pamela S. Schindler. Business Research Method. 6th ed. Singapore: McGraw-Hill, 1998.

Dictionary of Contemporary English. Longman, 2001.

Kotler, Philip. Marketing Management. New Jersey: Prentice-Hall, Inc., 2000.

Musselman, Vernon A., and John H. Jackson. Pengantar Ekonomi Perusahaan. 9th ed. Jakarta: Erlangga, 1996.

Sekaran, Uma. Research Methods for Business (A Still-Building Approach). 3rd ed. New York: John Wiley & Sons, Inc., 2000.

Sugiyono, Prof. Dr. Statistika untuk Penelitian. Bandung: CV Alfabeta, 2005.

Tjiptono, Fandy, Yanto Chandra, and Anastasia Diana. Marketing Scales. Yogyakarta: ANDI, 2004.

Tjiptono, Fandy, and Gregorius Chandra. Service, Quality, and Satisfaction. Yogyakarta: ANDI, 2005.


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Maranatha Christian University Zeithaml, Valarie A., A. Parasuraman, and Leonard L. Berry. Delivery Quality Service: Balancing Customer Perceptions Expectations. New York: The Free Press, 1990.

ELECTRONIC PUBLICATIONS:

Idris, Omar, et al. “Peruntungan Membisniskan Stres.” Kontan No. 6, Tahun X. 7 November 2005 <www.kontan_online.com>.

“Jasa.” Wikipedia Indonesia: Ensiklopedia Bebas Berbahasa Indonesia. 11 Februari 2008. <http://id.wikipedia.org/wiki/Jasa>.

“Online Dictionary.” Dictionary: WordNet. 2008. <http://kamus.landak.com/cari/salon>.