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MULTIPLE REGRESSION ANALYSIS : DETERMINANT OF CUSTOMER
SATISFACTION OF FRUIT LOOPY PRODUCT
H. MR. ULUNG SEMBIRING, ROSMANIAR SEMBIRING, H. MALIKUDDIN SEMBIRING,
H. BACHTIAR SEMBIRING AND HJ. FATMAITA SEMBIRING
Abstract: The purpose of this study is as follows: To know the effect of distribution
on customer satisfaction at Fruity Loopy company. To know the effect of on customer
satisfaction at Fruity Loopy company. To know the influence of distribution and
on customer satisfaction together with Fruity Loopy company. The method used
is descriptive method and causality method. The population of this study is all
Fruity Loopy customers in Jakarta with sample size of 79 customers. Based on the
results of research distribution and together affect the customer satisfaction
Company Fruity Loopy Jakarta. The contribution to influence is 48.8%. However,
partially is more dominant in affecting customer satisfaction of Fruity Loopy
Company Jakarta, compared with distribution factor.
Introduction
In essence every company in running its business aims to earn profits in accordance
with the intended principal objectives. PT. Fruity Loopy is a newcomer company
in the world of food and beverage nationwide that produces fresh food dessert
type. The company was established in 2007, based in Jakarta, Indonesia. The
resulting product is a healthy food product, which focuses on fruit salad products.
Nowadays, the people of Indonesia have started to realize the importance of
consuming healthy food. With the appropriate nutritional intake, then their health
will be more secure. Fruity Loopy Original is able to bridge that.
Marketing is the process of planning and execution of thought, pricing,
promotion, and distribution of ideas, goods, and services to create exchanges that
meet individual and organizational goals (Kotler, 2000, p.9).
Customer satisfaction is believed to be fulfilled by paying attention to distribution
and to increase sales. For that Fruity Loopy to do this marketing strategy in order
to win the market.
By having a good distribution and adequate distribution is expected to run
smoothly to consumers so that product sales can continue to be improved.
In addition to distribution , also plays an important role in supporting the
companys marketing activities. The purpose of is to influence consumers either
directly or indirectly. In other words also serves to introduce products of consumers
so that consumers are interested to buy it so that sales volume can increase.
Customer satisfaction is a state where customer wants, expectations, and needs
are met. A service is considered satisfactory if the service can meet customer needs
Keywords: Distribution, Promotions, Consumer Satisfaction
198 H. MR. ULUNG SEMBIRING, ROSMANIAR SEMBIRING AND ET AL.
Literature Review
Distribution
According to Barry Berman (Berman, Barry, Marketing, John Willey & Sons, inc.)
Through the use of distribution, producers can reach consumers through the sale of
their products of wholesalers and retailers. By performing efficiencies in the number
of relationships required to deliver their products of consumers, will benefit the
producers. Intermediaries and consumers in terms of distributed quantity of product
become more with time and cost efficiency.
According to Carvens (2003: 28) the distribution itself means: A network of
organizations that perform functions connecting producers to end users.
So the distribution itself consists of various interdependent or interdependent
agencies or bodies that function as a system or network that together produce and
distribute a product to the end user.
Distribution marketing system:
a) Marketing System
The conventional feature is as a highly divided network where producers,
wholesalers and retailers, bargain for their own interests and negotiate aging
aggressive terms. Otherwise they will act autonomously.
b) Vertical Marketing System One member has other members or franchisees to
them or has enormous power so that all members can work closely together.
c) The Horizontal Marketing System, ie, if two or more unrelated companies
work together to pool resources or programs to take advantage of existing
marketing opportunities. This marketing system is also referred to as a symbiotic
marketing system.
d) Multi Distribution, ie if a company uses two or more distribution to reach one
or more customer segments. By increasing the number of distribution , the
company will get three important benefits:
a) Broader market reaches
b) Lower cost
c) More sales to customers taste
Understanding by Kotler and AB. Susanto (2006: 814) is The form of
presentation is not personal and the promotion of ideas, goods or services by a
person certain sponsors who require a fee.
The functions by Basu Swastha (2006: 246) are for providing information, persuade
or influence, create an impression, satisfy the desire, and as a means of communication.
Customer satisfaction
Kotler marketing experts (2007:177) argued that satisfaction is Satisfaction is a
persons feelings of pleasure or disappointment resulting from comparing a products
perceived performance (or outcome) in relation to his order expectation.
MULTIPLE REGRESSION ANALYSIS: DETERMINANT OF CUSTOMER... 199
That is, Satisfaction is the feeling of pleasure or disappointment of someone
who emerges after comparing the performance (result) of the product to the expected
performance (outcome) expected. If performance is below expectations, customers
are not satisfied. If performance meets expectations, customers are satisfied. If
performance exceeds expectations, the customer is very satisfied or happy.
Based on the above notions, it can be concluded that customer satisfaction is
a level where the needs, desires, and expectations of consumers will be met or
exceeded through transactions that will lead to the occurrence of repeat purchase.
According to Kawkins and Lonney (2007: 31) in the level of customer satisfaction,
there are eight factors that must be considered by the company, namely:
a. Value to Price Relationship
That the relationship between price and product value is determined by the
difference in value received by the subscriber against the product produced by
the business entity.
b. Product Quality
It is the quality of all the components that make up the product so that the
product has added value.
c. Product Features
It is a physical component or a product that produces.
d. Reliability
Be a combination of the ability of a product of a reliable business entity, so
that the resulting product can be in accordance with what has been promised
by the business entity.
e. Warranty
Offer for the purchase of a purchase price or make repairs to a defective product
of a condition where a product suffered damage after purchase.
f. Resolution Problems
It is the employees attitude to responding to a complaint or helping the customer
in overcoming the problemi.
g. Sales Experience
It is a relationship between employees and customers especially in terms of
communication related to the purchase.
h. Convenient of Acquisition
It is the ease given by the business entity to the customer for the product it
produces.
A company is said to be wise when measuring customer satisfaction regularly,
because the key to retaining customers is satisfaction.
According Handi Irawan (2003: 37) customer satisfaction has various dimensions,
namely:
a. Quality of product
Customers are satisfied if after buying and using the product, the quality of
the product is good. Divided into six elements, that is:
200 H. MR. ULUNG SEMBIRING, ROSMANIAR SEMBIRING AND ET AL.
1) Performance
2) Durability
3) Feature
4) Reliability
5) Consistency
6) Design
b. Product price
For sensitive customers usually low prices are an important source of satisfaction
because they will get high value of money
c. Service quality
Divided into five dimensions, ie:
1) Reliability
2) Responsiveness
3) Assurance
4) Empathy
5) Tangible
d. Emotional factors
Emotional factors:
1) Brand image
2) Aesthetic
3) Self expressive value
4) Brand personality
e. The ease to get the product and or service is divided into various indicators,
that is:
1) Product location
2) Total population
Framework
Based on the above theory, the authors describe the frame of thought as follows:
1. Influence between distribution on customer satisfaction
Distribution here are very influential on the customers domicile. As we know,
that the occurrence of a transaction (sale of products) Fruity Loopy not only
occurs to the store / outlet Fruity Loopy only. Not a lot of transactions happen
to the phone media, BBM (Blackbery Messenger), or through internet media
(social networking, such as: Facebook, Twitter, or Fruity Loopy blogs). This
shows the customers expectation to involve the delivery service of the products
they buy. While the policy of the company to solve this is with the expense of
shipping cost or delivery fee of each customer order.
2. The effect of on customer satisfaction
In accordance with the function according to Kotler (2006: 817) is to inform,
persuade and remind all things related to the survival of the company. Through
MULTIPLE REGRESSION ANALYSIS: DETERMINANT OF CUSTOMER... 201
is also expected to occur two way communications (two way communication)
between the company and the customer. So that any complaints or suggestions
customers can be immediately addressed by the company through cost efficiency
and also time.
3. Influence between distribution and simultaneously to customer satisfaction
The relationship between these three variables, where the distribution and
simultaneously affect the customer satisfaction is as follows:
Distribution
Customer Satisfaction
Promotion
Figure 1: Conceptual Framework
Methodology
The nature of this research is descriptive and verification with the assumption that
this method is most relevant by analyzing the events that occur by measuring the
indicators of research variables through parameters and statistical measurement
techniques, the research method used is descriptive survey method, and explanatory
survey method.
The type of investigation is causality, because it will be tested the causal
relationship between the independent variable and the dependent variable. The
unit of analysis in this research is consumer of Fruity Loopy product, Jakarta. This
research is included into the cross-sectional category, ie information from respondents
is collected directly, with the aim to get respondents perceptions of the object of
research.
Source and How to Determine Data / Information
Sources of data into this study are secondary data sources of documentation or
reports available to the company (data distribution , data, and company data
related to research conducted). While the primary data in the form of opinions
about distribution , and customer satisfaction derived from customers Fruity Loopy
in Jakarta, as respondents.
The population of this research is all Fruity Loopy customers in Jakarta. The
statistical test that will be used to determine the sample size is path analysis (Path
202 H. MR. ULUNG SEMBIRING, ROSMANIAR SEMBIRING AND ET AL.
Analysis), where the path coefficient is essentially the correlation coefficient. Thus
the minimum sample size of path analysis is done iteratively, with the following
steps:
Sample Size Calculation
1) Based on the results of previous research, researchers determined that r (smallest
correlation coefficient) = 0.36 is between the variable distribution with customer
satisfaction variables.
2) The real level (�) used is 5% and the desired test power (1-�) is 95%.
3) Based on the normal distribution Z1-� = Z0,95 = 1,645 and Z1-� = Z0,95 = 1,645
4) The process of determining the sample size is minimally done by iterative.
First iteration:
1 �1 � 0,36 �
U1p � ln � �
2 �1 � 0,36 �
U1p =0,377, then
(1,645 � 1,645) 2
n� �3
�0,377�2
n=79,16 H 79 Respondents
second iteration:
1 �1 � 0,36 � 0,36
Up � ln � ��
2 �1 � 0,36 � 2�79 � 1�
Up = 0,379, then
(1,645 � 1,645) 2
n� �3
�0,379�2
n = 78,27 � 79 Respondents
In the third iteration with the use of the same formula turns out the result are
78.27 or 79 respondents. For that reason iteration is stopped because the value of
the second iteration equals the third iteration. Thus, the sample size of this study
is minimum of 79 respondents, with � = 5% and 1-� = 95% or � = 5%.
Hypothesis Analysis and Testing
The test results of question item validity of the questionnaire for each variable with
r> 0.3 (Sugiyono, 2006: 329), then show that all items have a greater correlation
value. This means all question items are valid.
Then to test reliability with cronbach alpha, then every variable (latent) obtains
alpha value> 0.7 (saifuddin azwar (2000: 75)) means that the result of the instrument
can be said reliable.
MULTIPLE REGRESSION ANALYSIS: DETERMINANT OF CUSTOMER... 203
Hypothesis Testing
1. Simultaneous Hypothesis Testing
To know whether the independent variables of of Distribution (X1) and (X2)
simultaneously influence over Customer Satisfaction (Y) on Fruity Loopy
Product, done by path analysis and SPSS release 17 software. what is done is
to calculate the correlation between the variables, so that it is obtained as the
table below.
Tabel 1
Correlation Matrix Between Variables
X1 X2
X1 Pearson Correlation 1 .653
Sig. (2-tailed) . .000
N 79 79
X2 Pearson Correlation .653 1
Sig. (2-tailed) .000 .
N 79 79
** Correlation is significant at the 0.01 level (2-tailed).
Source: SPSS 17.0 output results
Furthermore, based on the results of correlation matrix calculations can be
calculated coefficient path X1 and X2 variables to Y as Table below.
Table 2
Path Coefficient
Path coefficient X1 to Y PYX1 0,242
Path coefficient X2 to Y PYX2 0,516
Source: SPSS 17.0 output results
Furthermore, to test whether the variable X1 (Distribution ) and X2 ()
simultaneously (together) affect the variable Y (Customer Satisfaction), then used
F-test statistic (ANOVA Table) as follows:
Table 3
Results of Simultaneous Testing (X1 and X2 against Y)
ANOVA (b)
Model Sum of Squares df Mean Square F Sig.
1. Regression 1083.124 2 541.562 36.154 .000(a)
Residual 1138.429 76 14.979
Total 2221.553 78
Source: SPSS 17.0 output results
a Predictors: (Constant), X2, X1
b Dependent Variable: Y
204 H. MR. ULUNG SEMBIRING, ROSMANIAR SEMBIRING AND ET AL.
Based on Table IV.G. above, it is seen that the F count of 36.154 (greater than
F0.05; (2.76) = 3.112) and with Sig. 0.000 is smaller than 0.05 (� = 5%), so it can
be deduced that the variables X1 (Distribution) and X2 () simultaneously affect
the variable Y (Customer Satisfaction) significantly, or in this case Hypothesis 3 is
accepted.
Based on the results of calculations for multiple determinant coefficients
(R2Y.X1.X2), the correlation coefficient (RY.X1.X2), the coefficient of determination
of other variables to Y (P2Y�), and the coefficient of other variable paths to Y
(PY�) in detail is shown by The table below.
Tabel 4
Coefficient of Determination and Other Variable Path Coefficients
Coefficient of multiple determination (R2) R2Y.X1.X2 0,488
Multiple correlation coefficient (R) RY.X1.X2 0,653
The coefficient of determination of other variables to Y P2 Y � 0,512
The coefficient of path X of another variable to Y PY � 0,716
Source: SPSS 17.0 output results
This means that the influence of variables X1 and X2 together (simultaneous)
to variable Y of 0.488 or 48.8%, and the remaining 0.512 or 51.2% influenced by
other variables that are not included in the study.
2. Partial Hypothesis Testing
Based on the theoretical framework that there is a positive influence over
Distribution and on Customer Satisfaction. Then the next test will be used to
determine or test the influence of each variable as in the Table below.
Table 5
Partial Test Results
Variable Path Coeff. Tcount Sig. tTable Conclusiom
PY.X1 0,242 2,233 0,002 1,99 t value > t table;
Sig. < 0,05
H0 rejected, There is a
Distribution influence
on Customer Satisfaction
PY.X2 0,516 4,754 0,000 1,99 t value > t Table;
Sig. < 0,05
H0 rejected, There is the
influence of on Customer
Satisfaction
Based on the calculation of coefficient value of variable path (X1) and (X2) to
(Y) find that all aspects of Distribution and aspect affects customer satisfaction.
Complete can be explained in the causal relationship diagram of variables X and Y
as follows:
Figure 2: The causal relationship between Distribution (X1), (X2) and
Customer Satisfaction (Y)
Based on figure 2 above, the structural causal relationship between variables
can be seen that Distribution and proved to affect Customer Satisfaction
simultaneously or partially. The most dominant factor influencing Customer
Satisfaction is factor with path coefficient of 0,516, while Distribution factor is
0,242.
Furthermore, based on the direct and indirect effect of X1 and X2 on Y, can be
seen in the table below.
Table 6
Direct effects of variables X1 and X2 to Y and indirect effects outside variables
X1 and X2 to Y
Interpretation of Path Analysis
Information Influence Percent (%)
Direct influence X1, X2 to Y 0,325 32,5
Indirect influence X1, X2 to Y 0,163 16,3
From the test results can be seen that the of Distribution and directly affects
Customer Satisfaction of 32.5%, indirect influence t (distribution through and vice
versa) of 16.3%, and 51.2% influenced indirectly by other factors that are not
studied by researchers such as marketing communications, pricing, partnerships
and others. Thus the better Distribution and then increasing customer satisfaction
with Fruity Loopy products.
206 H. MR. ULUNG SEMBIRING, ROSMANIAR SEMBIRING AND ET AL.
Conclusion
Based on the results of research analysis, then in this chapter the researcher can
conclude the results of the study as follows:
1. Distribution is significant and significant to customer satisfaction with
Fruity Loopy Company Jakarta. The great influence are 0.242%, so the
high level of distribution Fruity Loopy Jakarta Company will affect whether
or not customer satisfaction with the eyes of its customers.
2. is influential and significant to customer satisfaction Company Fruity Loopy
Jakarta. The big influence is 0.516% with a positive direction where the
better will be increasingly also increased customer satisfaction with the
eyes of the company customers Fruity Loopy Jakarta.
3. Distribution and together affect the customer satisfaction Company Fruity
Loopy Jakarta. The contribution to influence is 48.8%. However, partially
is more dominant in affecting customer satisfaction of Fruity Loopy Company
Jakarta, compared with distribution factor.
Suggestion
If this research is continued with the addition of these variables, it is expected that
the research findings will be more perfect and comprehensive.
Customer satisfaction is a dependent variable, it is expected that future
researchers can examine customer satisfaction variables by adding one intervening
variable such as customer value (perceived value). So the possibility of research
results will be different and more comprehensive.
This research is conducted at Fruity Loopy Company Jakarta, for further
research can be done at other company of beverage and other food product, so the
possibility of research findings will be different.
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