Professional Documents
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INDUSTRY IN BSD.
CASE STUDY: TUTUP PANCI RESTAURANT
Page 1 of 44
CHAPTER I
INTRODUCTION
1.1 Background
One industry that places strong focus and emphasis on its customers is the
restaurant industry. The full-service restaurant industry has maintained a
healthy growth despite global economic downturn through the extensive use of
marketing strategies,
such
as
price
promotions,
loyalty
schemes
or
membership plans, and new innovative menu items (Zen 2015). Indonesias
economy has been experiencing steady growth recently, below are the growth of
Indonesia economy for the past 4 years;
Figure 1.1
2011
2012
5.21
5.02
2013
2014
hectic lifestyle in urban areas is one of the underlying factors that support this
high consumption.
Tutup Panci, is located in Nusa Loka, Serpong, South Tangerang City, Province of
Banten. South Tangerang City is located in Banten Province, Indonesia and
Banten has a good growth of economy which is stated in the graph below;
7.13
5.47
4.03
2011
2012
2013
2014
Figure 1.2
(Badan Pusat Statistik 2016)
Likewise, South Tangerang City, which is located in Banten, also has a good
growth of economy which is stated in the graph below;
Figure 1.3
8.81
8.66
2011
2012
2013
2014
Tutup Panci itself is part of Food and Beverage Industry which is a part of South
Tangerang Citys economy and according to Badan Pusat Statistik, there are 16
categories which shaped South Tangerang Citys economy which Food and
Beverage Industry are one of them. The Food and Beverage Industry in South
Tangerang City Economy has a good growth which stated on the graph below;
Figure 1.4
2011
2012
6.13
2013
2014
Figure 1.5
476,619,500
458,221,987
452,788,525
416,565,443
2012
2013
2014
2015
(Nova 2016)
22
24
2011
2012
2013
37.5
2014
The target market of Tutup Panci consists of the residents of BSD City area.
Primary market is focused on teenagers, in which it is believed that the concept of
Tutup Panci is relevant with the needs and desire of this particular market. The
age range for the teenager market starts from 15 to 21 years old, in which the
individuals would be currently undergoing education in Junior High School,
Senior High School and universities. The main competitor of Tutup Panci is Roti
Bakar (for example, Roti Bakar 88) which has established market and several
branches. (Putra, et al. 2013).
Soriano (2012) stated that, for the restaurant industry, it is important to understand
the attributes which influence customers decisions to return to a restaurant for
another meal. By understanding these factors, it is possible to satisfy customers
expectations and prevent their defection, leading to plentiful profits for the
restaurant (Haghighi, et al. 2012). As put by Hansemark and Albinsson (2004),
customer satisfaction has been believed to have an impact on the market share and
customer retention and thus, has been treated as the primary objective of
businesses (Srivastava 2015).
The problem have basically weakened the firms competitiveness in the next
period. The assumption will be proven statistically using the following questions
1. What are the factors that influencing customer satisfaction on small
business in restaurant industry in BSD?
2. What are the factors of customer satisfaction most affect Tutup Panci?
CHAPTER II
LITERATURE REVIEW
2.1 Framework of Thinking
Figure 2.1 Framework of Thinking
Problem Definition
The Factors Affecting Customer Satisfaction On Small Business In
Restaurant Industry In BSD
Theoretical Aspects
Customer Satisfaction
Restaurant
Small Business
Research Questions
What are the factors that influencing
customer satisfaction on small business in
restaurant industry in BSD?
Analysis
Regression will be used in this research
Hypotheses Testing
H0: There is no significant
H1: There is significant influence
influence from respective
from respective independent
independent variables toward
variables toward customer
customer satisfaction (dependent
satisfaction (dependent variables)
variables)
Source: Author
2.1.1 Customer
Customer is the person who buys a product or a service offered by a business
organization, as the purchase process (Grigoroudis and Siskos 2010). Potential
customers may be considered as:
1. The need or desire to purchase the product or the service
(Grigoroudis and Siskos 2010)
2. The motive to proceed to this particular purchase (Grigoroudis and
Siskos 2010)
3. The necessary financial resources (cash or credit) (Grigoroudis and
Siskos 2010)
4. The ability to access the locations where the products or the
services are made available (Grigoroudis and Siskos 2010)
2.2.2
Customer Satisfaction
the taste of the food and how it is presented (Yuen and Chan 2010).
2. Features: Addition benefits of the product or service (Yuen and Chan
2010).
3. Conformance: Whether the product meet the standard or not (Yuen and
Chan 2010).
4. Reliability: The potential of how the product will work as it is supposed to
(Yuen and Chan 2010).
5. Durability: The duration of how long the product can be used (Yuen and
Chan 2010).
6. Serviceability: The capability of the product (Yuen and Chan 2010).
7. Aesthetic: How the product presented physically (Yuen and Chan 2010).
8. Customer-perceived Quality: Customer perception of a product s quality
based on the reputation of the firm (Yuen and Chan 2010).
2.2.2.2 Price
Price is considered as one of the factor which influences customer satisfaction.
For company point of view price is:
1. Value (Sabir, Irfan, et al. 2014)
2. Reward (Sabir, Irfan, et al. 2014)
Given in return of need fulfilment to company. Perceived customer
expectations and price should be in accordance with each other (Sabir, Irfan, et
al. 2014). Price is one of the four Ps of Marketing Mix that has significant
role in implementation of marketing strategy (Kotler and Armstrong 2012).
Price is playing a vital role in the customer satisfaction because the charges of
the product directly affect the customer, so if it is affordable then customers
satisfy it and willing to purchase the product again and again in future (Sabir,
Ghafoor, et al. 2014). The pricing of restaurant items also varies according to
the type of restaurant. If the price is high, customers are likely to expect high
quality, or it can induce a sense of being ripped off. Likewise, if the price is
low, customers may question the ability of the restaurant to deliver product
and service quality (Andaleeb and Conway 2006).
These are things which create the positive image of the restaurant in the mind
of customers (Sabir, Ghafoor, et al. 2014).
2.3 Restaurant
According to Gordon & Brezinki (1999) restaurants are places of business that
prepare and serve food, drinks, and desserts to patrons in exchange for money.
There are many types of restaurants including formal, semi formal, casual,
lunch spots, hotel restaurants, breakfast diners, pizza joints and take out
establishments (Wibowo 2013).
Wibowo (20013) stated that there are three types of restaurant which can be
divided on the purpose and core business of each. They are High Class
Restaurant, Family Restaurant, and Fast-Food (Franchise) Restaurants.
1. High Class Restaurant is a kind of dining place which serves with high
quality, imported food, cooked by professional, and have higher price
than others restaurant. This kind of restaurant is also provided by fivestars hotels and sometimes they bundled it with the room service or
meeting occasion. Some hotels, such as, JW Marriott, Le Meridien,
Sultan Hotel, and Sheraton, are the example of place that offer this
type of dining place (Wibowo 2013).
2. Family restaurant is a good place for family to spend their time and try
different kind of dishes. People come to this restaurant with their
family or friends. According to Restodb.com (a website contains all
family restaurant in Jakarta), there are 2,750 restaurants operating in
the city which 500 of them are foreign taste restaurants, such as:
European, Korean, Thai and Japanese restaurants in 2011 (Wibowo
2013).
3. Fast food is the term given to food that can be prepared and served
very quickly. While any meal with low preparation time can be
considered to be fast food, typically the term refers to food sold in a
restaurant or store with preheated or precooked ingredients, and served
to the customer in a packaged form for take-out/take-away. All fast
food in Indonesia are using franchise systems. Franchise restaurant
means A form of business organization in which a restaurant has a
succesful menu or dishes or services (the franchisor) enters into a
continuing contractual relationship with other businesses (franchisees)
operating under the franchisors trade name and usually with the
franchisors guidance, in exchange for a fee (Wibowo 2013).
Variables/ indicators
Key Findings
Evaluation of factors
Product quality
Price
product
Service Quality
quality,
Restaurant
Environment
Restaurant Location
impact
Customer Satisfaction
Customer Trust
restaurant
Customer Loyalty
quality,
service
restaurant
on
confirmed.
customer
location
Also,
on
product
positive
effect
on
important factor
in
Boof
Chain
Customer
Research Studies
Variables/ indicators
Key Findings
The
restaurant
physical
Customer Satisfaction
results
show
owners
design,
that
should
product
should
take
service
Variables/ indicators
Key Findings
Factors Affecting
Quality
Customers Satisfaction in
Price
Restaurants Industry in
Environment
Customer Satisfaction
al. 2014)
Variables/ indicators
Key Findings
Impact of Different
Price
Determinants on
Quality
Customers Satisfaction
Environment
Security
et al. 2014)
Service
Customer Satisfaction
regions.
Research Studies
Variables/ indicators
Key Findings
Customer satisfaction in
Service Quality
the restaurant
Product Quality
industry: an examination
Price
of the
Customer Satisfaction
transaction-specific model
by
2006)
3.This variables under research are Product Quality, Price, Service Quality,
and Restaurant Environment Customer Satisfaction
Product
Quality
Price
Customer
Satisfaction
Service
Quality
Restaurant
Environment
Source: (Haghighi, et al. 2012) (Sabir, Irfan, et al. 2014) (Sabir, Ghafoor, et al.
2014) (Nasir, et al. 2014) (Andaleeb and Conway 2006).
Based on compiling the each of the variables and the previous research, the
model which was constructed are as above.
2.8 Hypotheses
CHAPTER III
RESEARCH METHOD
quantitative research; they are descriptive research, correlational research, causalcomparative/quasi-experimental research, and experimental research.
This will be a descriptive study due to the fact that this research will observe how
factors of Customer Satisfaction especially in restaurant industry, in small business.
The research is most related to the observing associated indicators from one to
another, therefore establishing paper as a descriptive study (Monroe College 2011).
3.3.1
Population Target
This research will use Tutup Panci Restaurant and the target population will be
limited to customers who visit Tutup Panci Restaurant, Nusa Loka, BSD,
South Tangerang City. The total population in this research is unknown, since
so many people pass this criteria.
3.3.2
Sampling Method
According to Cooper & Schindler (2011), there are two types of sampling
method, which are probability sampling and non-probability sampling.
a. Probability sampling is the process to select random sample from
population, which offers a chance to each object in the population to have
the same probability to be chosen (Cooper and Schindler 2011).
Probability sampling will include simple random sampling, proportionate
stratified random sampling, disproportionate stratified random sampling,
and cluster sampling (Sugiyono 2012).
b. Non-probability sampling is the process of selecting samples from a
population specifically with a scheme of the sample applied (Cooper and
Schindler 2011) Non-probability sampling includes systematic sampling,
incidental sampling, purposive sampling (judgment sampling and quota
sampling), cencus sampling, and snowball sampling (Sugiyono 2012).
3.3.3
Sampling Size
A number of people are chosen to answer the questionnaire in order to find out
to obtain the meaningful information for this research. Referring to the
calculation result of PHStat, which is explained below, the minimum number
of respondents should be at least 97 people with the estimation of true
population is 50% and 10% for error tolerance, but able to achieve 95% level
of confidence with the sample.
There will be one type of data collection used in this research which are Primary Data
through quantitative (numeric) and Primary Data through qualitative (non-numeric)
thus, primary data though quantitative will be used in this research as it is what
needed and data are collected straight from corresponding customers of Tutup Panci.
The process of quantitative data collection will be structured and a questionnaire will
be used to collect the data in a statistical manner. The questionnaire will be distributed
through to the customers of Tutup Panci Restaurant whom are commonly known as
respondents (Sarwono, Teknik jitu memilih prosedur analisi skripsi 2014) and the aim
of using the questionnaire itself is to find out the factors which most influences the
customer satisfaction in restaurant industry, on small business, which is Tutup Panci
as the case study.
The type of the data will be formed to answer several questions and the answer will be
into two formats which were checklist / categorical and scale which nominal
scale (to gather demographic information and classify specific characteristic) and
likert scale.
The measurement of the 5-point Likert Scale is explained below:
o 1 = Strongly Disagree
o 2 = Disagree
o 3 = Neutral
o 4 = Agree
o 5 = Strongly Agree
Figure 3.2 Question Table
Variable
Product
Quality
Indicator (s)
Scale
1. Performance
Likert
Question
1. The
in
this
food
food
in
this
Chan 2010).
3. Conformance
(Yuen and Chan
2010).
4. Reliability
(Yuen
food
served
in
appropriate temperature
(Yuen
6. Serviceability
(Yuen and Chan
2010).
7. Aesthetic
(Yuen
7. The
food
served
are
innovative
8. Customerperceived Quality
2010).
Price
Scale
2. Reward
(Sabir,
(Markovic, Scale
(Markovic,
in
this
restaurant is affordable
2. The price is worth the
quality
1. The
staff
in
this
staff
has
good
3. The
staff
dresses
properly
4. The staff are always
willing to help me
3. Tangibles
2009)
price
2. Assurance (Buttle
2009)
1. The
(Buttle
(Markovic,
5. The
staff
always
(Buttle
(Markovic,
2009)
(Markovic, Raspor
and Dorcic 2011)
Restaurant
Environment
1. Music
Ghafoor,
(Sabir, Likert
et
2014)
2. Setting
arrangement
al. Scale
restaurant
had
(Sabir, Ghafoor, et
attractive decoration
al. 2014)
3. Decoration (Sabir,
Ghafoor,
et
al.
2014)
3.4.2
Secondary data was taken from books, journals, magazines and newspaper, published
electronic sources, websites, government records, and the company profile.
Research Question
Hypothesis
Hypothesis #1
H0: Customer Satisfaction does not play a significant role in Customer Loyalty
H1: Customer Satisfaction plays a significant role in Customer Loyalty
Pre-Testing
3.6.2
Post-Testing
After pre-testing can show valid and reliable results, the researcher should
continue to distribute the questionnaires to all respondent means 100
respondents. In order to avoid data error from the questionnaire, which is not
valid (Respondent did not answer some question), the researcher distributed
the questionnaire based on total sampling that had already been calculated.
After all data has collected, the researcher can measure validity and reliability.
This post testing result is very essential to be evaluated.
3.7
Validity
Validity testing is a measurement tool to see whether the data collected can be
used in the research. A valid questionnaire is where the relationship to be
measured is significant. It determines a relationship that the research aims to
present can proceed from the data collected using the questionnaires.
The measurement of this validity will use KMO & BARTLETTs test through
SPSS software. The steps for the validity test are follows:
1. Open SPSS 2.0 Software
2. Click file > Open > Data and choose the correct file to be computed
3. Click analyze > Dimension Reduction > Factors
4. Moves all variables into the variables table from the left side to the right
side
5. Click Descriptive > Choose KMO & Bartletts test of Sphericity in
Correlation Matrix > click continue
6. Click Extraction > check factor to extract > Change to value 2
7. Change number of iterations for convergences to 100 > click continue >
Click Ok
8. On the output screen > scroll down to the section titled KMO& Bartletts
test. If value result is above 0.5 it is considered as valid.
3.7.2
Reliability
3.8
Regression Analysis
Source: Author
3.8.2
F-test
3.8.3
F-test
The significance level must be divided by two because this is two tail test,
decision making for t-test are:
If the value of t output + t table or output t table then H0 is rejected
If the value of t table t output + table then do not reject H0
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