. International Review of Management and Marketing ISSN: 2146-4405 available at http: www.econjournals.com International Review of Management and Marketing, 2017, 7(1), 529-536. International Review of Management and Marketing | Vol 7 • Issue 1 • 2017 529 Experiential Marketing Creative Antecedence for Success of Brand Loyalty (A Study on the Users of Perfume for Body in Indonesia) Gita Sugiyarti1,2*, Hendar3 1Faculty of Economics and Business, Diponegoro University, Semarang, Indonesia, 2Faculty of Economics and Business, 17 Agustus 1945 University (UNTAG), Semarang, Indonesia, 3Faculty of Economics and Business, Diponegoro University, Semarang, Indonesia. *Email: gitaayuaris@gmail.com ABSTRACT The main objective of this study is to develop a model of marketing conceptual on creative experiential marketing in order to boost brand loyalty. The specific target of this study is to empirically test creative influence on experiential marketing. Purposive sampling technique is applied in the study the collect data. Samples are taken as many as 171 respondents of the users of perfume for body sold in Indonesia. Data in this study is collected by interview. Data collection is using the combination of open questions and closed questions which are given to respondents. Managerial finding in this study is developing creative experiential marketing to enhance brand loyalty. Keywords: Sense Marketing, Act Marketing, Creative Experiential Marketing, Brand Trust, Brand Loyalty JEL Classifications: M5, M21 1. INTRODUCTION The condition of competition is getting harder (Docquier and Machado, 2015; Bartanen and Littlefield, 2015; Hakkak and Ghodsi, 2015), so every company must be able to survive (Kusi et al., 2015; Olalekan and Tajudeen, 2015), even it must keep developing. One thing that has to be done and paid attention to by every company is to keep its existed customers and to keep hoping that new potential customers do not turn their loyalty to other products. Customer loyalty is an important concept (Ibojo and Asabi, 2015), especially during tight competition while the growth is low. In this situation, customer loyalty is needed so company can survive (Napitupulu and Aditomo, 2015). On the other hand, an effort to keep customer loyalty is a strategic effort compared to an effort to gain new customers. In order to be able to gain new customers (Bricci et al., 2016), currently there are many companies which use experiential marketing approach, which approach is not only selling good products but also making customers impressed, feeling deep emotion towards the marketed products (Hannam, 2004). Interaction between company and customers creates emotional bond (Gupta and Chopde, 2011), where there is an ability to solve a problem in a marketing to create problem solving on a brand, and to promote the result of a business, an effort to create an enjoyable experience on a brand is needed (Petkus, 2004; Hannam, 2004). The concept of experiential marketing is a widely-accepted level concept to create the perfectness of benefit towards experiences. Experiential marketing is a marketing approach conducted by marketers since the old times up to now (Schmitt, 1999; Steenhouse, 2003; Zhao and Zhang, 2009), stated that the shift of traditional marketing approach to experiential marketing approach is because of three factors of development in business world; firstly, brand benefit through the advance of brand information technology (Gensler et al., 2013) can be widely spread through various media quickly. Brand takes control over a product or service, which means that brand is as the creator of Sugiyarti and Hendar: Experiential Marketing Creative Antecedence for Success of Brand Loyalty (A Study on the Users of Perfume for Body in Indonesia) International Review of Management and Marketing | Vol 7 • Issue 1 • 2017530 experience for the consumers. Secondly is information technology factor. Advanced technology caused by information technology revolution can create one’s experience and share it to others wherever they are, such as sharing it through computer media, cell phones, etc. thirdly, the many existing communication and entertainment cause the tendency of all products and services to have brands and to have abundant numbers. For marketers, those can be formed into communication and entertainment form which can create experience for consumers (Schmitt, 1999). In order to build communication and relationship among consumers where brand is the main purpose of companies and a marketer (Keller, 2003). Companies are urged to connect their products and product line, to fulfill consumers’ demands in various segments in the markets, (Fournier, 1998). Research about brand image (Zhang, 2015), plays important role in determining consumers’ decision to purchase a product offered by the company. In order to develop brand loyalty (Lakeh et al., 2015), there are two connection felt by consumers towards certain products and services, which first, customers’ preference level (the amount of trust) towards products and services (Griffin, 1995). Second, the level of perceived product difference, e.g., how much significant do customers differentiate certain products and services against other alternatives. This study aims to analyze experiential marketing factors which can increase brand loyalty creatively. According to background and the purpose of the study, thus, the problems of the research is: How to build creative experiential marketing to enhance brand loyalty. 2. LITERATURE REVIEW 2.1. Sense Sense marketing has appeal with sense, aiming to create sensory experience through sight, sound, touch, feeling, and smell. Sense marketing (Krishna and Schwarz, 2014) can be used for differentiating companies and product, in order to motivate consumers, and to add product value (Schmitt, 1999). Sense marketing needs an understanding about how to reach sensory effect. The purpose of sense creates aesthetics fun, joy, beauty, and satisfaction through sense’s stimulation. Three keys that can motivate sense marketing (Zhao and Zhang, 2009) are: First, sense as differentiator. Sense campaign is to attract consumers because it can perform extraordinarily. The way to attract consumers’ attention is through product, communication, and space design. Sense campaign stimulates through new ways and strategies which then become product differentiator. Second, sense as motivator. Sense campaign can do more. It can motivate consumers to try out products and purchase them. The main issue is how to stimulate consumers without pushing them too hard or be indifferent to them. Along with the optimal level of stimulation and activation, sense campaign can be a strong motivational strength. Third, sense as value provider. Sense campaign can give unique value towards consumers. Study of Hamzah (2007) found that consumer’s value in using Mentari, knowing how much effect of experiential marketing, emotional branding and brand trust in building brand loyalty of Mentari consumers, knowing how much effect of sense, feel, think, act, relate, commandment, fiability and intention towards the development of brand loyalty of the consumers of Mentari. Study of Farrel (2000), Rachna, (2011), consumer perception and change appeal happen gradually along with the availability of goods and adequate substitute service in the market. Consumers are weaker in sensory stimulation towards goods and service related to convincing attitude which is more depending on its sensory stimulation. Although traditional marketers are focused on the development of products and the needs of consumers, developing various kinds of attitude about the choosing of goods and services. Many pro-active companies are involved in (above the line-an activity where the institution gets income from media corporate, e.g., Ads in newspaper, magazine, TV and radio) and (below the line-an activity related to promotion, e.g., marketing promotion, private marketing, direct marketing and PR), an activity to develop new trends, (through the line, e.g., ads to reach consumers in all sensory points). In accordance with the above explanation, first hypothesis is formed. H1: A positive association exists between sense marketing and creative experiential marketing. 2.2. Act Study of Schmitt (1999); Fransisca (2007b), act functions to create valuable experience for consumers, physically as behavioral pattern and long term life style, experience with others; first, physical experience with motor: Technique of motoric activity behavior works not only when someone does self-motoric activity, but also interact socially with others. Body signal: A marketer can use body signal like signs or body language, voice stress and eye contact in order to influence consumer behavior. Second, life style means one’s life pattern expressed through one’s activity on interest and opinion. In order to express life style to others and themselves, consumers need examiner and indicator about brands that possess one’s life style or brands reflecting someone. As marketers, they should be sensitive in looking at life style trend or even, can be the motor of life style trend, such as, influencing action without thinking, role model, and social norm. The interaction has a close relation with physical behavior and social behavior of the activity of people who interact. Study (Li, 2008) found how local traditional culture and experiential marketing observe the difference of the introduction of experiential activity and Taiwan sugar corporate (TSC) and its consumers. This study discusses the way TSC markets Taiwanese local culture by using experiential marketing strategy. Act is consumers’ and experts’ main attention after TSC is transformed. Thus TSC must increase facilities related to ACT to attract consumers. Experts give second priority towards “relate” but consumers emphasize on “feel.” Thus TSC must decrease “relate” but increase “feel” to attract and satisfy consumers. On sense, sight is an important factor on experts and consumers. Thus TSC must plan on how to make consumers impressed Sugiyarti and Hendar: Experiential Marketing Creative Antecedence for Success of Brand Loyalty (A Study on the Users of Perfume for Body in Indonesia) International Review of Management and Marketing | Vol 7 • Issue 1 • 2017 531 and comfortable when they are in the branch of TSC. On Act, interaction is experts’ and consumers’ priority. Thus TSC does not only increase on the design of ACT experience but also on how to increase consumers’ opportunity to interact with others. On relate, culture is the most important factor on consumers and experts. This study is in the line with (Schmitt, 1999; Hamzah, 2007; Fransisca, 2007a). In accordance with the above explanation, second hypothesis is formed. H2: A positive association exists between act marketing and creative experiential marketing. 2.3. Creative Experiential Marketing Experiential marketing is a marketing concept which tries to communicate marketed products by drawing consumers’ attention, touching their hearts to give impression about the marketed products into their hearts and minds (Schmitt, 1999). Experiential marketing basically determines processing map for environment where a company will place its brand (Passikof, 2006). Experiential marketing is a process to identify and satisfy the needs of consumers and profitable aspiration, involving consumers through two-way communication which bring brand personality for life and add value of audience target. Two-way communication and interactive involvement are the keys to create impressive experience which triggers word of mouth, and change consumers to become brand supporters and consumers’ loyalty towards a brand. Creative experiential marketing is an ability to create experience and emotion within the consumers by using various kinds of strategy so that it creates deep impression on consumers’ heart on corporate products, so in the end consumers purchase and then re-purchase and give reference to others to purchase the corporate products. Study (Kao et al., 2007), there is a positive influence between experiential marketing and brand trust, brand loyalty through the aspect of experiential marketing, such as sense, feel, think, act, and relate (Schmitt, 1999; Fransisca, 2007a; Hamzah, 2007) stated that experiential marketing is effective for marketers to build trust and brand loyalty through the aspects of sense, feel, think, act, and relate. In accordance with the above explanation, third hypothesis is formed. H3: A positive association exists between creative experiential marketing and brand trust. 2.4. Brand Loyalty Experiential marketing functions as a way to build brand equity. Brand equity includes unseparated consumers’ life style interaction. Marketers need to communicate association, interest, life style, of the widely-marketed products and services in the social context and in the strong emotional bond. Study of Mendez et al. (2015), experiential marketing, in its development, faces many challenges related to the measurement of its success. Different (Hazlett, 2003) with the measurement of the achieved result, marketers will not wait because they agree with what is proven by a research: Consumers are difficult to differentiate among products. Technology advancement produces many similarities among those products. The change offered by customer service creates the same effect on their customers. Study of Fransisca (2007b) stated that experiential marketing is very effective for marketers to build brand loyalty. Study of (Hamzah, 2007) found that there is a positive effect between experiential marketing and brand loyalty through the aspect of experiential marketing; sense, feel, think, act and relate. Experiential marketing has advantages on some situation, including preventing brand decrease, differentiating products with competitor’s products, creating images and as corporate’s identity, in order to promote innovation and cause purchase trial, finally consumers are loyal to the corporate’s products, (Schmitt, 1999, Hamzah, 2007). In accordance with the above explanation, fourth hypothesis is formed. H4: A positive association exists between creative experiential marketing and brand loyalty. 2.5. Brand Trust Brand trust is marketing activity in gaining customers’ satisfaction by building and keeping their trust in order to stay on a brand by giving positive value (Lau, 1999). Brand trust is consumers’ feeling of security because of their interaction with brand, based on a perception that that particular brand can be relied upon and be responsible for consumers’ security and needs and is the hope on its good reliability and intensity (Delgado-Ballester, 2004). The relation between trust and trusted brand is not about people but about symbol. Because of that, loyalty on a brand involves trust over brand. In order to create loyalty in today’s market, marketers must focus on the formation and maintenance of trust in consumer-brand relationship (Lau, 1999). In accordance with the above explanation, fifth hypothesis is formed. H5: A positive association exists between brand trust and brand loyalty. Based on the literature review of empirical models can be described as shown in Figure 1. 3. RESEARCH METHOD 3.1. Population Object population is a group or element which has information searched by researchers and the result will show an inferential conclusion for the group or population (Ferdinand, 2013). Data Sugiyarti and Hendar: Experiential Marketing Creative Antecedence for Success of Brand Loyalty (A Study on the Users of Perfume for Body in Indonesia) International Review of Management and Marketing | Vol 7 • Issue 1 • 2017532 collected is primary data, which uses survey method. This research population is users of vitalis, spalding, internity perfume brand in Indonesia. 3.2. Sample Sampling is using purposive sampling technique. Purposive method is a sampling technique based on certain consideration where samples are chosen with requirements which are considered as having essential characteristics relevant with the research. Therefore, the chosen sample and meet the requirements are respondents which have characteristics of: (a) Users of vitalis, spalding, and internity body perfume brand, (b) aged between 14 and 40. 3.3. Data Analysis Technique Data analysis technique is qualitative analysis (descriptive analysis) and quantitative analysis (inferential analysis). Descriptive analysis is used to describe research variable, without drawing generalization or description about respondent characteristics as well as building frequency distribution by using data from questioner given to the respondents. While inferential analysis is analysis used to test research hypothesis (Hair, 2004), the number of sample ideal for SEM is between 100 and 200, so in this research, the taken samples are 171 respondents. 4. RESULTS To obtain the data, this study distribute as much 270 questionnaires to users of body perfume in Jakarta, Semarang and Surabaya, Indonesia. Number of questionnaires returned for processing to the next stage reached 171 questionnaires (63.33%). Of the 171 respondents 135 were males and 36 respondents women. The majority (60.23%) of respondents have a college degree. Most of the respondents have incomes under 5 million rupiah per month. Table 2 shows the characteristics of the respondent in this research. 4.1. Measurement Testing the hypothesis in this study, multi-item scales adopted from previous studies to construction measurement. All construction measured using a 7 point Likert scale, ranging from “strongly disagree” (1) to “strongly agree” (7). Normal distribution test is a test that measures if we have a normal distribution of data so can be used in parametric statistics (inferential statistics). Table 3 shows that the data has been univariate but not multivariate normal. But in this case, we can proceed to the next stage. 4.2. Validity and Reliability Table 4, column convergent the validity of each item/indicator variable has a value more than 0.5. Therefore, an item/indicators can be omitted from the analysis. All values AVE each variable was also above the required value of 0.5. As shown in Table 4, it Figure 1: Empirical model Table 1: Brand loyalty indicator Source Brand loyalty indicator Pappu et al. (2005) Main choice, word of mouth, join program Shahrokh et al. (2012) Feel loyal to the brand, selecting brand, recommend brand Dharmmesta (1999) Brand‑choice sequence, proportion of purchase; proportion of purchase, brand preference Oliver (1999) Cognitive loyalty, behavioral loyaly Krystallis and Chrysochou (2014) Brand attitude Hamzah (2007) Retention, related sales, referrals Table 2: Respondent characteristic Respondent characteristic Number of observations Frequency (%) Gender Male 146 84.80 Female 25 15.20 Education SMA 60 35.09 Bachelor degree 103 60.23 Master’s degree 8 4.69 Revenue (IDR) <5,000,000/month 156 91.23 5,000,000-10,000,000/month 15 8.77 >10,000,000 - - Sugiyarti and Hendar: Experiential Marketing Creative Antecedence for Success of Brand Loyalty (A Study on the Users of Perfume for Body in Indonesia) International Review of Management and Marketing | Vol 7 • Issue 1 • 2017 533 can be concluded that the data is reliable because construct the reliability value of each variable is greater than cut-off (>0.60). 4.3. Goodness of Fit Goodness of fit test is aimed to see whether the data are in accordance with the model that Iam building GFI, CFI, TLI, and RMSEA are a measure of goodness of fit. Data is said to be fit with mods if the value of AGFI, CFI and TLI are more than 0: 09 and RMSEA < 0.08. The fitmodel in this study explains that has goodness fit model (GFI = 0.92, CFI = 0.905, TLI = 0.961, dan RMSEA = 0.054). 4.4. Hypothesis Testing Measurement result has met the criteria of goodness of fit. Next, based on fit model, testing on the five proposed hypothesis is done. In accordance with data tabulation, we found, first, positive effect between sense marketing on creative experiential marketing; second, positive effect of act marketing on creative experiential marketing; third, negative effect of creative experiential marketing on brand trust and positive effect of brand trust on brand loyalty. Coefficient value of causality relationship regression and the counting of t value is shown in critical ratio (CR) value, Table 4. Table 4 can be explained: First, we found positive relationship between sense marketing and creative experiential marketing (first hypothesis). Our processed result is shown by estimation parameter of 0.570 which CR value = 2.647 or CR > 2.00 which significance degree is 0.05 (5%), it is also proven that P < 0.05. H1 is accepted. Second, we found positive relationship between act marketing and creative experiential marketing (second hypothesis). Our processed result is shown by estimation parameter of 0.716 which CR value = 2.675 or CR > 2.00 which significance degree is 0.05 (5%), it is also proven that P < 0.05. H2 is accepted. Third, we found negative relationship between experiential marketing and brand trust (third hypothesis). Our processed result is shown by estimation parameter of 0.003 which CR value = 1.981 or CR < 2.00 which significance degree is 0.05 (5%), it is also proven that P > 0.05. H3 is rejected. Fourth, We found positive relationship between creative experiential marketing and brand loyalty (fourth hypothesis). Our processed result is shown by estimation parameter of 0.649 which CR value = 2.917 or CR > 2.00 which significance degree is 0.05 (5%), it is also proven that P < 0.05. H4 is accepted. Fifth, we found positive and significant relationship between brand trust and brand loyalty (fifth hypothesis). Our processed result is shown by estimation parameter of 0.620 which CR value = 2.451 or CR > 2.00 which significance degree is 0.05 (5%), it is also proven that P < 0.05. H5 is accepted. 5. DISCUSSION First, hypothesis can be accepted. This result supports research conducted by (Rachna, 2011; Hamzah, 2007) which found that sense marketing has significant and positive effect on experiential marketing. It means that sense marketing which is measured with estimation indicator on the color of perfume, estimation on how to present the perfume; estimation on the cleanliness of the marketing location, estimation on the perfume aroma; has proven as giving significant positive relationship on experiential marketing which is indicated by performance indicator: The product is better than the competitor’s; treatment: Product interaction with its consumers, i.e., product is easy to purchase; community: Product is widely known in the society. This means that if a company has adequate marketing ability on giving experience to consumers through five senses, it will give real benefit, in the form of the increasing experiential marketing. Second, this result supports research conducted by (Li, 2008; Fransisca, 2007b) which found that act marketing has significant and positive effect on experiential marketing. It means that act marketing which is measured with estimation Table 3: Normality analysis Indicator of variable Univariate Sense An assessment of the color of perfume −0.539 An assessment of how the presentation of perfume 0.022 Assessment of the cleanliness of the place of sale −1.049 Assessment of perfume −0.177 Act An assessment of the services as needed −0.375 An assessment of the alternative products −1.423 An assessment of the product innovation −1.198 Experiential marketing Performance 1.565 Treatment −0.949 Community −0.639 Brand trust Competent brands from time to time −2.190 Brand has a good reputation −0.714 Good brand integrity −1.617 Brand loyalty Customer is committed to perfume the body −0.433 Customers recommend the brand to someone else’s body perfume −1.342 Multivariate −0.542 Table 4: Summary of structural model path analysis and fit statistics Hypothesis Path; (t-value/P-level) Result Sense marketing - creative ex. marketing Par. est 0.570; CR=2.647 or CR>2.00; significant, 0.05 Accepted Act marketing - creative ex. marketing Par. est 0.716; CR=2.675 or CR>2.00; significant, 0.05 Accepted Creative ex. marketing - brand trust Par. est 0.003; CR=1.981 or CR<2.00; significant, 0.05 Rejected Creative Ex. marketing - brand loyalty Par. est 0.649; CR=2, 917 or CR>2.00; significant, 0.05 Accepted Brand trust - brand loyalty Par. est 0.620; CR=2.451 or CR>2.00; significant, 0.05 Accepted Level of significant 0.05 Sugiyarti and Hendar: Experiential Marketing Creative Antecedence for Success of Brand Loyalty (A Study on the Users of Perfume for Body in Indonesia) International Review of Management and Marketing | Vol 7 • Issue 1 • 2017534 indicator on the service according to the needs, estimation on the product alternative; estimation on the product innovation, has proven as giving significant and positive relationship on experiential marketing which is indicated by performance indicator: The product is better than the competitor’s; treatment: Product interaction with its consumers, i.e., product is easy to purchase; community: Product is widely known in the society. This means that if a company has adequate marketing ability on giving experience to consumers through a very valuable experience to its consumers, related to physical, behavior and long term life style as well as experience with others, it will give real benefit, in the form of the increasing experiential marketing. It is found that creative experiential marketing has insignificant and negative effect on brand trust. It means that creative experiential marketing which is measured by performance indicator: The product is better than the competitor’s; treatment: Product interaction with its consumers, i.e., product is easy to purchase; community: Product is widely known in the society. It is not proven to give positive and significant relationship with brand trust measured by the indicator of competent brand from time to time; brand has good reputation; integrity of good brand. This means that although a company has an ability to create experience and emotion to consumers by using various strategies used in such a way that a deep impression on company’s products is formed in the heart of the consumers, so in the end consumers purchase the product and then re-purchase and give reference to others to purchase the company’s product does not give positive effect on brand trust. Thus consumers’ experience gained from emotional experience may happen because consumers feel negative impression from that experience so that it has bad effect on company’s brand trust. This result supports research conducted by (Kao et al., 2007; Passikof, 2006) which found that creative experiential marketing has significant and positive effect on brand loyalty. It means that creative experiential marketing which is measured by performance indicator: The product is better than the competitor’s; treatment: Product interaction with its consumers, i.e. product is easy to purchase; community: Product is widely known in the society, has been proven to give significant and positive relationship with brand loyalty which is indicated with an indicator that consumers are committed to refilled perfume and will not replace it with other brands; consumers recommend the brand of refilled perfume to others; customers keep updating the development related to the product such as the newest perfume. This means that if a company has adequate marketing ability related to its ability on giving experience to consumers through a very valuable experience, related to physical, behavior and long term life style as well as experience with others, it will give real benefit, in the form of the increasing experiential marketing so that the loyalty towards the brand also increases. This result supports research conducted by Delgado-Ballester (2004) which found that brand trust has significant and positive effect on brand loyalty. It means that is measured with the indicator of competent brand from time to time; brand has good reputation; integrity of good brand, has been proven to give significant relationship on brand loyalty which is indicated with the indicator that consumers are committed to body perfume and will not replace it with other brands; consumers recommend the brand of body perfume to others; customers keep updating the development related to the product such as the newest perfume. This means that if a company has an ability on giving security feeling to the consumers as a result of their interaction with the brand, based on a perception that that particular brand can be relied upon and is responsible for the needs and the security of the consumers and has the hope that it will give reliability and good intensity so that it will give real benefit, in the form of the increasing of brand loyalty. 6. LIMITATIONS AND FUTURE RESEARCH DIRECTIONS 6.1. Managerial Implication First, the result of this research is hoped to give information on body perfume management that brand loyalty is not only influenced by creative experiential marketing, but also by brand trust. Therefore, body perfume management should continuously improve variable quality of sense marketing, act marketing, creative experiential marketing, and brand trust by always paying attention to the quality of human resources, the quality of product as well as making promotion programs which can attract buyers’ interest in purchasing body perfume. Second, consumers’ objectivity on perfume product is very high depending on taste, price, social status. Therefore, companies should add more product variants to suit consumers’ taste. Third, attention and support from many sides are needed in various forms of body perfume managerial capacity development on many business scale in Indonesia so that it will give positive contribution on a better business existence and expansion in the future. 6.2. Research Limit First, this study takes research object on body perfume which brands are vitalis, spalding, and internity in Indonesia. Thus, conclusion derived from this study is surely not yet possible to be a general conclusion if applied on other projects other than the object of this research. Second, this study only focuses on body perfume which brands are vitalis, spalding, and internity, the researcher’s limit becomes the cause of the limit of research object scope taken in this research. Thus there is a possibility if the research is conducted in either by scale or by other forms of industry. Third, researcher focuses on five factors; sense marketing, act marketing, experiential marketing, brand trust, and brand loyalty. It is not impossible that actually there are still many other factors which can influence brand loyalty. It is seen from the ability of sense marketing, act marketing, experiential marketing, and brand trust which are only able to explain 71% of brand loyalty. Sugiyarti and Hendar: Experiential Marketing Creative Antecedence for Success of Brand Loyalty (A Study on the Users of Perfume for Body in Indonesia) International Review of Management and Marketing | Vol 7 • Issue 1 • 2017 535 6.3. Future Research Agenda First, it is suggested that the future research replicates this research by using bigger and broader samples of geography, demography, as well as scope of industry. 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