THE FORMATION OF BRAND LOYALTY IN INDONESIAN RESTAURANT INDUSTRY

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THE FORMATION OF BRAND

LOYALTY IN INDONESIAN

RESTAURANT INDUSTRY

  Ananda Sabil Hussein Taufiq Ismail Universitas Brawijaya Malang, Indonesia

  Raditha Hapsari Lincoln University Canterbury, New Zealand

  

ABSTRACT: This study aimed to investigate the structure and dimensions of restaurant

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analyse the data collected from one hundred and twenty respondents. Before testing the hy-

potheses, inner and outer model evaluations were performed and the results showed that the

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archical structure with cognitive, affective, and conative which are recognised as primary di-

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restaurant managers in creating customer loyalty. Keywords: UHVWDXUDQW EUDQG H[SHULHQFH

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  INTRODUCTION 'LQLQJ RXW LV EHFRPLQJ D FRPPRQ OLIHVW\OH IRU ,QGRQHVLDQ VRFLHW\

  When people go out to socialise, eating out is one of the main activi- WLHV $SDUW IURP WKH OLIHVW\OH UHDVRQ WKH DIIRUGDEOH IRRG SULFHV DQG the wide variety of cuisine are the other reasons for Indonesians to

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  dine out. To facilitate the increasing demand of the dining out activ- LW\ QHZ UHVWDXUDQWV KDYH RSHQHG LQ ,QGRQHVLD HVSHFLDOO\ LQ ELJ FLWLHV

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  As the restaurant industry continues to grow, the issue of loyalty has LQFUHDVLQJO\ UHFHLYHG PRUH DWWHQWLRQ ,EUDKLP ,JOHVLDV 6LQJK %DWLVWD )RJXHW ([SHUWV +HVNHWW 0F0XOODQ *LOPRUH

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  0F0XOODQ *LOPRUH While loyalty is recognised as an important concept in marketing studies, some issues rise around this concept, especially in the area of

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  6XKDUWDQWR HW DO Separated from the issue of the formation and the structure of

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  VXSHUPDUNHW 2UHO .DUD FRIIHH RXWOHWV &KHQ +X DQG IDVW IRRG LQGXVWU\ (WHPDG 6DMDGL 5L]]XWR 6HY- eral approaches were perceived from the structure of loyalty itself. As previously mentioned, among scholars, the concept and dimensions RI OR\DOW\ DUH DUJXDEOH VLQFH OR\DOW\ FDQ EH SHUFHLYHG IURP D EHKDY- LRXUDO DSSURDFK DWWLWXGLQDO DSSURDFK DQG FRPSRVLWH DSSURDFK 6X- KDUWDQWR HW DO

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  The other approach to loyalty concept is the attitudinal approach. In WKLV DSSURDFK VWXGLHV ZHUH IRFXVHG RQ FXVWRPHU EHOLHIV DQG RSLQLRQV LQ UHVSHFW WR SXUFKDVLQJ EHKDYLRXU %DFN 0HOOHQV 'HNLPSH

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• &XVWRPHU VDWLVIDFWLRQ PHGLDWHV WKH HIIHFW RI SHUFHLYHG EUDQG identity on attitudinal loyalty.

  Based on the review of literature, a conceptual model is proposed E\ WKLV VWXG\ )LJXUH GHSLFWV WKH FRQFHSWXDO PRGHO XVHG LQ WKLV VWXG\

  Customer Satisfaction Brand Attitudinal Behavioural ([SHULHQFH

  Loyalty Loyalty Brand Identity

  Cognitive Affective Conative

Figure 1. Research Model

  RESEARCH METHOD

  6DPSOH

  The respondents to this study are the customers of moderate up-

  VFDOH UHVWDXUDQWV LQ 0DODQJ &LW\ (DVW ² -DYD 3URYLQFH ,QGRQHVLD $ WRWDO RI TXHVWLRQQDLUHV ZHUH GLVWULEXWHG ZKHUHDV WKDW PLJKW EH XVHG IRU WKLV VWXG\ \LHOGHG DQ UHVSRQVH UDWH 7KHVH UHVSRQG- ents were recruited using convenience sampling method.

• HQGHU Male

  27 Doctoral

  7R KDYH D FRPSUHKHQVLYH XQGHUVWDQGLQJ DERXW EUDQG OR\DOW\ WKLV

  The measurements of the constructs proposed in this study were GUDZQ IURP WKH OLWHUDWXUH %UDNXV HW DO .DSIHUHU 7KHVH FRQVWUXFWV ZHUH GHYHORSHG E\ XVLQJ PXOWL LWHP VFDOHV DGDSWHG IURP SUHYLRXV VWXGLHV HVSHFLDOO\ LQ WKH FRQWH[W RI EUDQG PDQDJHPHQW DQG KRVSLWDOLW\ VWXGLHV $ SRLQW OLNHUW VFDOH DQFKRUHG E\ VWURQJO\ DJUHH DQG VWURQJO\ GLVDJUHH ZDV XVHG E\ WKLV VWXG\ WR PHDVXUH WKH LWHPV

  53 Measurement

  25 >Rp 3.000.000

  15 Rp. 2000.000- Rp3.000.000

  3 Rp 1.000,000 - Rp 2.000.000

  3 Monthly Income <Rp.1000.000

  52 Postgraduate

  )250$7,21 2) %5$1' /2<$/7< ⁷⁴

  11 Diploma Undergraduate

  5 >55 Education High School

  46 - 55

  55 Age 33 26-35 43 36-45

  45 Female

  7DEOH 5HVSRQGHQWV· 3URÀOH

Variables Percentage

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  7KH IROORZLQJ LV WKH GHPRJUDSKLF SURÀOH WKDW HPHUJHG IURP WKH

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  75

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  SUHVHQWHG DQG FRQVXOWHG ZLWK ERWK DFDGHPLFV DQG UHVWDXUDQW SUDFWLWLRQ- ers to improve the face validity of the constructs. In addition, prior WR WKH GDWD FROOHFWLRQ D SUHOLPLQDU\ VWXG\ KDG EHHQ FRQGXFWHG DQG LW LQGLFDWHG WKDW DOO RI WKH FRQVWUXFWV ZHUH YDOLG DQG UHOLDEOH

  Data Analysis

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  76

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  gent and discriminant validity and unidimensionality test. A construct ZLOO EH IUHH RI FRQYHUJHQW YDOLGLW\ SUREOHPV LI HDFK LWHP KDV WKH VFRUH RI IDFWRU ORDGLQJ KLJKHU WKDQ DQG $YHUDJH 9DULDQFH ([WUDFWHG $9( KLJKHU WKDQ +DLU %ODFN %DELQ 'LVFULPLQDQW YD- OLGLW\ ZDV HYDOXDWHG XVLQJ DQ DSSURDFK SURSRVHG E\ &KLQ 7KLV approach suggested that none of the items should load higher on an- other construct than it does on the construct it intends to measure. ,Q RWKHU ZRUGV WKH YDOXH RI WKH IDFWRU ORDGLQJ VKRXOG EH KLJKHU WKDQ WKH FURVV ORDGLQJV $ FRQVWUXFW ZLOO EH XQLGLPHQVLRQDO LI LW KDV WKH

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  The unidimensionality test indicates that the score of composite re- OLDELOLW\ IRU HDFK FRQVWUXFW UDQJHG IURP WR DOO RI ZKLFK DUH EH\RQG WKH FXW RII YDOXH 1XQQDOO\ 6LPLODU WR WKH VFRUH RI FRPSRVLWH UHOLDELOLW\ WKH VFRUH RI DOSKD &URQEDFK LV DOVR DERYH WKH FXW RII YDOXH UDQJHG IURP WR 7KHVH UHVXOWV PHDQ DOO FRQ-

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  77

HUSSEIN, ISMAIL AND HAPSARI

  

Table 2. Summary of Reliability Test

Cronbach’s Alpha Composite Reliability

  Affective Attitudinal Loyalty %UDQG ([SHULHQFH Brand Identity Behavioural Loyalty Customer Satisfaction Cognitive Conative

  In this study, the value of the factor loading for almost each con- struct is higher than its crossloading score. However, the crossloading DQDO\VLV VKRZHG WKDW WKH LWHP RI %,'B KDV FURVVORDGLQJ VFRUH KLJKHU than the construct of customer satisfaction. Therefore, this item was GHOHWHG 7KH GHOHWLRQ RI %,'B VOLJKWO\ FKDQJHG WKH VFRUH RI $9( FRPSRVLWH UHOLDELOLW\ DQG DOSKD &URQEDFK IRU WKH FRQVWUXFW RI EUDQG LGHQWLW\ ,Q DGGLWLRQ WKHVH FKDQJHV PDGH WKDW all of the values of factor loading for each construct is higher than the FURVVORDGLQJ 7KHUHIRUH LW FDQ EH VDLG WKDW WKHUH LV QR IXUWKHU GLVFUL- PLQDQW YDOLGLW\ SUREOHP VHH $SSHQGL[

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  IURP WR )LJXUH VKRZV WKH 3/6 DQDO\VLV IRU WKH PRGHO EXLOW

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  Figure 2. Path Analysis

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Table 3. Calculation of Goodness of Fit Index

Constructs R2 Communality Attitudinal Loyalty

  0,557 %UDQG ([SHULHQFH Brand Identity 0,604 0,604 Behavioural Loyalty 0,743 Customer Satisfaction 0,552 0.557 0,563

• R)

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Table 4. Summary of Hypothesis Testing

Path

  3DWK &RHIÀFLHQW T-statistics Hypothesis AL -> Cog 111,262 Supported AL -> AFF

  Supported AL -> Con Supported AL -> BL 0,777 11,66 Supported

  CS -> AL Supported BE -> CS 0,244 Supported

  BE -> AL 0,365 4,544 Supported BE -> BID Supported BE->CS->AL Supported BID -> CS 0,652 Supported

  BID -> AL 0,203 1,735 Not supported BID->CS->AL 3,635 Supported

  DISCUSSION AND CONCLUSION

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  HUSSEIN , ISMAIL AND HAPSARI Appendix 1 Constructs Sub-Dimensions Code Questions

  Factor Loading Brand %UDQG ([SHULHQFH

  %(B ........makes a strong impression on my visual sense 0.756 %(B , ÀQG LV LQWHUHVWLQJ LQ VHQVRU\ ZD\ 0.734 %(B I have strong emotions with......

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  0.744 %(B ....stimulates my curiosity Brand Identity

  %,B

  7KLV UHVWDXUDQW EXLOGLQJ H[WHULRU LV LPSUHVVLYH %,B

  7KLV UHVWDXUDQW EXLOGLQJ LQWHULRU GHVLJQ LV LQWHUHVWLQJ %,B

  7KLV UHVWDXUDQW FDQ EH GHVFULEHG DV OX[XULRXV 0.761 %,B

  7KLV UHVWDXUDQW FDQ EH GHVFULEHG DV XS WR GDWH %,B This restaurant has taken in local custom e.g., use the local greeting ‘Selamat Datang’ %,B , FDQ LGHQWLI\ WKH FXOWXUH RI WKLV UHVWDXUDQW EUDQG IURP WKH ZD\ WKH\ SURYLGH WKHLU VHUYLFHV %,B 0\ UHODWLRQVKLS ZLWK WKLV UHVWDXUDQW EUDQG LV UHODWHG WR WKH IRRG TXDOLWLHV %,B 0\ UHODWLRQVKLS ZLWK WKLV UHVWDXUDQW EUDQG LV EDVHG RQ OR\DOW\ 0.763 %,B

  I have a good impression toward this restaurant

   FRQW Constructs Sub-Dimensions Code Questions

  Factor Loading &RJB 1R RWKHU UHVWDXUDQWV SHUIRUP VHUYLFHV EHWWHU WKDQ &RJB , FRQVLGHU UHVWDXUDQW DV P\ ÀUVW FKRLFH ZKHQ , ZDQW WR GLQLH RXW

  Cognitive &RJB ...... restaurant provides superior service compare than other restaurants &RJB I am willing to pay more to dine in at ....

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  Affective

  7 Loyalty ,21 2) %5$1' /2

  $IIB , OLNH GLQLQJ LQ « YHU\ PXFK $IIB ..... is the one that I appreciate most 0.724 0.754

  &RQB Even if other hotels were offering a lower rate, I would still dine in at ...... &RQB I intend to continue dining at .... In the future

  0.705 Conative &RQB If .... were to raise the rate, I would still continue to dine in at...... 0.763 0.764 &RQB In the future, I intend to recommend .....to other people &RQB , LQWHQG WR VD\ SRVLWLYH WKLQJ DERXW WR RWKHU SHRSOH

  <$/ &6B 'LQLQJ LQ«LV H[FLWLQJ IRU PH

  7< &6B , PDNH D ULJKW FKRLFH WR GLQH LQ«DV P\ GLQLQJ SODFH Customer &6B , KDYH D VDWLVI\LQJ GLQLQJ H[SHULHQFH DW« Satisfaction &6B &RPPRQO\ , IHHO VDWLVÀHG ZLWK WKH GHFLVLRQ WR GLQH LQ« &6B &RPPRQO\ GLQLQJ LQ « LV D SOHDVDQW H[SHULHQFH IRU PH %/B When I dining out, I always dining in.....

  Behavioural %/B Compared other restaurants, I have dined in..... Loyalty %/B I spent more money in this restaurant compared to in other restaurants

  Appendix 2 AFF BE BID BL CS Cog Con 0,620152 $))B 0,824008

  0,868581 0,715105 0,724554 0,715323 $))B

  0,874185 0,700304 0,707156 $))B