Microsoft Word - 05_MN_Nathania-Harjanto-Annetta-a2t 120  Journal The WINNERS, Vol. 16 No. 2, September 2015: 120-130 ENHANCING BRAND LOYALTY BY INCREASING EXPERIENTIAL VALUE THROUGH CUSTOMER SATISFACTION IN BOKA BUKA RESTAURANT PONDOK INDAH MALL Nathania Gunawan1; Harjanto Prabowo2; Annetta Gunawan3 1,2,3 School of Business Management, Binus University, Jakarta Jln. K.H. Syahdan No. 9, Palmerah, Jakarta Barat 11480 2hprabowo@binus.edu; 3angunawan@binus.edu ABSTRACT This research was conducted at Boka Buka Restaurant. Boka Buka Restaurant is a casual French dining restaurant in Pondok Indah Mall. The objectives of the research are to examine if the experiential value contributes to customer satisfaction in Boka Buka Restaurant and to examine if the experiential value and customer satisfaction contributes partially and simultaneously to brand loyalty in Boka Buka Restaurant. The methods of the research are Pearson Correlation and Path Analysis. The data is obtained from the questionnaires which are distributed to the customers at Boka Buka Restaurant to measure the level of the Experiential Value, Customer Satisfaction, and Brand Loyalty, using a Likert scale. From the analysis of the data, it obtains structural equation Y = 0.812X + 0.5839ε1 where Experiential Value contributes significantly to Customer Satisfaction of 65.9% and Z = 0.255X + 0.582Y + 0.5958ε2 where Experiential Value and Customer Satisfaction simultaneously contribute significantly to the Brand Loyalty of 64.5%. Keywords: experiential value, customer satisfaction, brand loyalty ABSTRAK Penelitian ini dilakukan di Boka Buka Restaurant, yang merupakan sebuah restoran Prancis kasual yang terletak di Pondok Indah Mall. Tujuan dari penelitian ini adalah untuk menguji apakah experiential value memiliki kontribusi terhadap customer satisfaction pada Boka Buka Restaurant. Selain itu untuk menguji apakah experiential value dan customer satisfaction memiliki kontribusi terhadap brand loyalty, baik secara parsial maupun simultan pada Boka Buka Restaurant. Metode dalam penelitian ini adalah Pearson Correlation dan Path Analysis. Data penelitian diperoleh dari kuesioner yang disebarkan kepada para pelanggan Boka Buka Restaurant, untuk mengukur tingkat Experiential Value, Customer Satisfaction, dan Brand Loyalty, menggunakan skala Likert. Dari hasil analisis data yang ada, diperoleh persamaan struktural Y = 0.812X + 0.5839ε1 di mana Experiential Value berkontribusi secara signifikan kepada Customer Satisfaction sebesar 65.9 % dan Z = 0.255X + 0.582Y + 0.5958ε2 di mana Experiential Value dan Customer Satisfaction secara simultan berkontribusi signifikan Brand Loyalty sebesar 64.5%. Kata kunci: experiential value, customer satisfaction, brand loyalty Enhancing Brand Loyalty …… (Nathania Gunawan; dkk) 121  INTRODUCTION Indonesia is urbanized rapidly, which is leading to mix of many traditions. It is also exposing consumers to try international taste and trend. Some of the companies in an urban city like Jakarta take this opportunity to open international restaurants. French restaurants in Jakarta have developed in few years and have become a new destination of Indonesian. French restaurants such as Boka Buka, Coquelicot le Bistro, Cafe Bon Francais, Riva, Java Bleu, Lyon, Rendezvousdoux, and Cassis, try to attract the customers by offering high quality food and service. These restaurants also give consumers the experience in eating French food. The promising future in food and beverages industry causes the competition among the companies become more intense. The growth of this sector was caused by increased spending on food as big as 47,71% in 2012. National Nutrition Strategy by FAO (2013) shows that average of daily per capita energy consumption with prepared food is 1.865calories. And it is bigger than the average of daily per capita energy consumption without prepared food 1.599,63 calories. Intense competition between local and international companies forces every restaurant to develop their market strategy in order to compete in the fierce market. For example, French restaurants which have a niche market target, they have to gain the customers’ loyalty to keep their companies still running. Market segments are large customer group in a market. A niche is a more narrowly defined customer group, that products or services tailored especially to the individual needs and preferences (Havaldar, 2010). Companies are always trying to create niche in the market by constructing their own base of loyal customers, who over the period have accepted the product whole-heartedly. These brand loyalists would spend their money devotedly to acquire the particular product. Brand loyalty is essential for the product to create its own niche (Agrawal & Siddharth, 2010). Evans and Lindsay (1996 as cited in Mohsan, 2011) stated, “Companies with satisfied customers have a good opportunity to convert them into loyal customers who purchases from those companies over an extended time period”. Hill et.al (2007) also agreed that to reap full benefits of customer loyalty, companies need to make customers highly satisfied. Furthermore, Kabiraj and Shamugan (2011) proposed that if consumers have been satisfied with the promoted brand, their satisfaction reinforces and leads to an increase in the probability of choosing the brand again. Achieving customer satisfaction is a major goal of marketing efforts. These efforts lead to purchase and/or consumption and in turn result in post-purchase phenomena such as attitude change, repeat purchase, and brand loyalty (Lee & Shin, 2010). Grigoroudis and Siskos (2010) conclude that satisfaction is a standard of how the offered total product or service fulfils customer expectations. Under a specific consumption setting, it frequently influences the overall attitude and decision-making when customers purchase products or service. Holbrook & Hirschman (1982 as cited in Wang & Lin, 2010) stated, “Experiential value is an experience that does not exist in the products purchased, on chosen brands, nor on the ownership of products, but in the process of consuming experience”. Mathwick, et.al (2001 as cited in Line, 2012) stated, “Current marketing literature highlights the importance of the service experience, suggesting that service providers must not only create a theatrical environment (providing fun, excitement, and entertainment), but also must encourage customers to participate in the service experience”. Slater stated that creating superior customer value is a key to a company’s long-term survival and success (as cited in Woodside, et al, 2008). If business managers can find factors that affect customers' satisfaction toward products or services, business may change customers' experiential when using product value or services and let customers obtain maximum satisfaction. This is in line with what Datta and Vasantha (2013) stated that experiential value leads customer satisfaction, while the experiential value and customer satisfaction together will make a loyal customer. Considering the 122  Journal The WINNERS, Vol. 16 No. 2, September 2015: 120-130 dynamic marketing environment and fierce competition, brand loyalty as core dimension of brand equity, is essential for any company that plans to maintain long-term competitive advantages and commercial performance (Moisescu, et.al, 2010). One of French restaurants named Boka Buka, which is located in South Jakarta, is a restaurant that made an innovation in its service and created experiential value to its customers. Boka Buka carried a concept to be the only one French restaurant whose price is relatively much cheaper than other restaurants. Boka Buka knows that it can’t compete with the fine dining French restaurants in Jakarta, instead the owner made a restaurant with home cooking concept. Boka Buka has been planning on expanding its wings by offering franchise to the franchisees in Indonesia. It means that people will be used to French food in Indonesia. Many people will look at this opportunity and can imitate Boka Buka’s concept in the future. Boka Buka began its journey on 2002 in Cipete and opened another branch in Pondok Indah Mall in May 2013. Since then, many competitors tried to follow the concept and market. For example, Coquelicot le Bistro in 2007 brought same home-made food concept, decoration, and target same market with Boka Buka. They even opened their restaurant near Boka Buka in Cipete. Another example is Oh Lala Cafe which suddenly changed its concept and name became Cafe Bon Francais in Februari 2010. Cafe Bon Francais brought a concept of Paris cafe and tried to attract the customers by offering French atmosphere with cheap French food. This is the main reason why Boka Buka needs customer loyalty to overcome the problem. Based on the background explained above, the research objectives to be achieved are: (1) To examine if the experiential value contributes to customer satisfaction in Boka Buka Restaurant; (2) To examine if the experiential value and customer satisfaction contributes partially and simultaneously to brand loyalty in Boka Buka Restaurant; (3)To examine if the customer satisfaction mediates between experiential value and brand loyalty in Boka Buka Restaurant. METHOD The research design of this research is showed at Table 1 below: Table 1 Research Design Objective of The Research Research Design Types of Research Unit Analysis Time Horizon O-1 Associative / Descriptive Individual - Customer Cross-sectional O-2 Associative / Descriptive Individual - Customer Cross-sectional O-3 Associative / Descriptive Individual - Customer Cross-sectional To complete this research, path analysis will be used to determine the influence of independent variables to the dependent variable, both directly and indirectly through mediating variable. Table 2 below shows the operationalization of variables used in this research. Enhancing Brand Loyalty …… (Nathania Gunawan; dkk) 123  Table 2 Operationalization of Variables Variable Dimension Indicator Size Scale Experiential Value - X (Park & Cha, 2011) Food Quality  The food is tasty  The food is healthy Ordinal Likert Service Excellence  The willingness of servers to help the customers  The knowledge of servers about the menu Ordinal Likert Aesthetics  The attractiveness of interior design  The ambience of the restaurant Ordinal Likert Playfulness  An enjoyment for dining in the restaurant  Customer’s destination to escape from their routine Ordinal Likert Customer Satisfaction - Y (Supranata & Iskandar, 2013; Harr, 2008) Reliability  Availability of menu variant  Promptness in serving  The serving conformity with the menu ordered  Menu pricing  The amenities in payment Ordinal Likert Assurance  Waiters’ hospitality in serving the customers  Waiters’ politeness  Waiters’ product knowledge about the ingredients of the food  Waiter’s ability to recommend food from the menu  Waiters’ knowledge on restaurant facilities Ordinal Likert Tangible  The restaurant’s decoration  The appearance of dinner set  The appearance of uniform of the staff  The appearance of menu book  The environmental hygiene at the restaurant Ordinal Likert Empathy  Concern toward the service failure  The service recovery  Fulfillment of customer’s special requirements Ordinal Likert Responsiveness  Promptness in dealing with customer’s requests  Promptness in dealing with customer’s questions  Promptness in dealing with customer’s complaints Ordinal Likert Brand Loyalty - Z (Lee, et.al, 2010) Loyalty in Attitude  Willingness to do repeat dining for a specific restaurant Ordinal Likert Tolerance to Price  Allows increased premium price Ordinal Likert Continuous Purchase  Use the restaurant as the first choice compared to other restaurants Ordinal Likert Recommendation Behavior  Recommend the restaurant to others Ordinal Likert Sampling technique in this research will use probability sampling, because every customer of Boka Buka Restaurant has the same probability to be selected as sample of this research. Number of sample can be calculated as below: n = N (1) N.d2 + 1 2.200 = 95.65 respondents 2.200 x (0.1)2 + 1 124  Journal The WINNERS, Vol. 16 No. 2, September 2015: 120-130 Based on the calculation above, the samples taken for the questionnaire are 95.65 respondents, which can be rounded up into 96 respondents. So, 150 people will be used as samples in order to achieve the purpose of this research. But, only 108 respondents who were eligible to be analyzed. They are chosen because of the frequency of visit to the restaurant is more than two times. To complete this research, there are some analyses that will be done, they are validity and reliability test, normality test, correlation test, and path analysis. RESULTS AND DISCUSSION Validity, Reliability, and Normality Test From the result of validity test using a 90% confidence level, all the questions that distributed through questionnaire are valid. All the questions that represent each variable from Experiential Value, Customer Satisfaction, and Brand Loyalty are valid because the value of corrected item total correlation > value of r table (0.13). From the reliability test, the result shows that all variables which are Experiential Value, Customer Satisfaction, and Brand Loyalty are reliable because all the value of Cronbach’s Alpha from each variable > 0.6. Then, from the normality test, it is also obtained that all variables used in this research are normally distributed, with sig value 0.105 (Experiential Value), 0.200 (Customer Satisfaction), and 0.200 (Brand Loyalty). Correlation Test Correlation test is used to determine the characteristic of relationship between independent variables and dependent variable. In this test, it will determine the relationship Experiential Value, Customer Satisfaction, and Brand Loyalty. In addition, the standard interpretation range of correlation is mentioned below (Riduwan & Kuncoro, 2007):  0,00 – 0,199: Very weak  0,20 – 0,399: Weak  0,40 – 0,599: Quite strong  0,60 – 0,799: Strong  0,80 – 1,000: Very strong From SPSS software, it’s found the result as Table 3 below: Table 3 Characteristic of Correlations Relationship between Correlation Characteristic of Relationship X with Y 0.812 Very Strong, Direct, and Significant X with Z 0.727 Strong, Direct, and Significant Y with Z 0.789 Strong, Direct, and Significant Enhancing Brand Loyalty …… (Nathania Gunawan; dkk) 125  Path Analysis Individually 1. Variable Expriential Value to Customer Satisfaction Table 4 Influence of Experiential Value to Customer Satisfaction (Source: The researcher (2014)) Sig = 0.000 < 0.1, then Ho is rejected and Ha accepted, which means Experiential Value (X) contributes significantly to Customer Satisfaction (Y) in Boka Buka Restaurant. The magnitude of the effect of variables X to variable Y can be determined by looking at the R-Square values in Table 4.20, where the value of R2 = 0.659 = 65.9% Thus, 65.9% of the value of the variable Y is influenced by variables X, while the remaining 34.1% is influenced by other variables outside of this study. Meanwhile, the magnitude of the path coefficients for other variables beyond the variables that affect the value of research is below: Y (ρY) = 21 R = 659.01 = 0.5839 (2) The value of R (correlation coefficient) is found to be 0.812. This means that the relationship between the independent variables X together with the dependent variable Y is strong (because the value of R is greater than 0.3) and goes in the same direction (because the value of R is positive). 126  Journal The WINNERS, Vol. 16 No. 2, September 2015: 120-130 2. Variable Expriential Value to Brand Loyalty Table 5 Influence of Experiential Value and Customer Satisfaction to Brand Loyalty Sig = 0.012 < 0.1, then Ho is rejected and Ha is accepted. So, Experiential Value (X) contributes significantly to Brand Loyalty (Z) in Boka Buka Restaurant. Any increase in the value of Experiential Value (X) by one, then the Brand Loyalty (Z) will increase by 0.255. Vice versa, any decline in Experiential Value (X) by one, then Brand Loyalty (Z) will also decrease by 0.255, as seen in Table 5. 3. Variable Customer Satisfaction to Brand Loyalty Based on Table 5, Sig = 0.000 < 0.1, then Ho is rejected and Ha is accepted. So, Customer Satisfaction (Y) contributes significantly to Brand Loyalty (Z) in Boka Buka Restaurant. Any increase in the value of Customer Satisfaction (Y) by one, then the Brand Loyalty (Z) will increase by 0.582. Vice versa, any decline in Customer Satisfaction (Y) by one, then Brand Loyalty (Z) will also decrease by 0.582. Path Analysis Simultaneously Still referring to the Table 5, Sig = 0.000 < 0.1, then Ho is rejected and Ha is accepted. So, Experiential Value (X) and Customer Satisfaction (Y) contribute simultaneously and significantly to Brand Loyalty (Z) in Boka Buka Restaurant. Enhancing Brand Loyalty …… (Nathania Gunawan; dkk) 127  The magnitude of the effect of variables X and Y simultaneously to variable Z can be determined by looking at the R-Square values in Table 5, where the value of R2 = 0.645 = 64.5% Thus, 64.5% of the value of the variable Z is influenced by variables X and Y, while the remaining 35.5% is influenced by other variables outside of this study. Meanwhile, the magnitude of the path coefficients for other variables beyond the variables that affect the value of research is below: Y (ρY) = 21 R = 645.01 = 0.5958 Still referring to Table 4, the value of R (correlation coefficient) is found to be 0.803. This means that the relationship between the independent variables X together with the dependent variable Y is strong (because the value of R is greater than 0.3) and goes in the same direction (because the value of R is positive). So the overall causal effect of the Experiential Value (X) on Customer Satisfaction (Y) and its impact on Brand Loyalty (Z) can be described in a model of the complete structure as Figure 1below: Figure 1 Causal Effect of X and Y to Z Then the whole path coefficients of a causal relationship can determine direct causal effect, indirect causal effect, and total causal effect of each variable. The results are summarized in Table 6 below: Table 6 Summary of Empirical Causal Relationship between Variable X, Y, and Z Variable Path Coefficient Causal Effect Overall Effect Direct to Z Indirect through Y Total X 0.255 0.255 0.473 0.728 - Y 0.582 0.582 - 0.582 - ε1 0.5839 0.5839 2 = 0.3409 - - - ε2 0.5958 0.5958 2 = 0.355 - - - X to Y - - - - 0.659 X and Y to Z - - - - 0.645 0.5839 X Y 0.812 Z 0.582 0.255 Y 128  Journal The WINNERS, Vol. 16 No. 2, September 2015: 120-130 CONCLUSION The condition of Experiential Value in Boka Buka is good, with the average score of 4.1274. Food quality in Boka Buka got the lowest average score of 3.81, with the category is good. Service excellence is also good, which is 4.15. Score of aesthetics in Boka Buka is 4.04, so the aesthetics is good. Playfulness in Boka Buka got the highest average score of 4.19. Meanwhile, the condition of Customer Satisfaction in Boka Buka is good, with the average score of 3.5359. Reliability in Boka Buka is good with the score of 3.53. Then, assurance got the highest average score of 3.56, which is also good. Tangible is in good category, which is scored 3.53. Empahy got the lowest score of 3.47, with good category. Responsiveness is also in good category with the score of 3.54. Then, the condition of Brand Loyalty in Boka Buka is good, with the average score of 3.3441. Loyalty in attitude got the highest average score of 3.59, which is good. The tolerance to price got the lowest average score, with the score of 3.25, and in sufficient category. Continuous purchase is also good and get the score of 3.33. Finally, the recommendation behaviour of the customers of Boka Buka is good, with the score of 3.47. Experiential Value has a positive and significant contribution to Customer Satisfaction at Boka Buka, with strong influence by 65.9%. Experiential Value also has a very strong relationship with Customer Satisfaction, which is 0.812. Experiential Value and Customer Satisfaction simultaneously contribute significantly to Brand Loyalty by 64.5%. Where Experiential Value contributes positively and significantly to Brand Loyalty by 6.5% with a strong relationship, which is 0.727. Customer Satisfaction contributes positively and significantly to Brand Loyalty by 33.87% with a strong relationship, which is 0.789. Experiential value has indirect influence to brand loyalty through customer satisfaction at 0.4732 x 100 % = 22.37%. While experiential value has direct influence to brand loyalty at at 0.2552 x 100% = 6.5%. Experiential value has bigger contribution to brand loyalty when it is mediated by customer satisfaction. So, customer satisfaction is a mediating variable between experiential value and brand loyalty. In some point, Boka Buka has deficiency and there are some suggestions for them. The quality of food in Experiential Value should be given more attention, regarding the health and the taste of food in Boka Buka got the lowest score. It means that the customers also set high standard for the taste of food they ordered. Boka Buka can give more variety to the menu, especially healthy choices of food and drinks. Healthy ingredients should be added as the ingredients of the food offered to the customers, like vegetables, fat free meat, and olive oil. Drinks and desserts that contain low-fat milk or fruits will also add healthy choices to the menu. Besides that, Boka Buka should understand the taste that the customers prefer. Asking their feedback about the food is one of the way to keep it as a suggestion to improve. The empathy in Customer Satisfaction is the dimension that got the lowest average score among the five dimensions, especially the concern toward service failure. Boka Buka has to fix the attitude of its employees and increase their sense of empathy to apologize to the customers whenever they made mistakes. Boka Buka can train the restaurant's manager how to recover the failure made to the customers, so that the waiters will learn and immitate it. The other way is by putting the name of the customers into Boka Buka's system and guarantee them if the next time the waiters make a failure to them again, the food they ordered are free. Boka Buka has to increase the accuracy of service given Enhancing Brand Loyalty …… (Nathania Gunawan; dkk) 129  to the customers, so the mistakes done can be reduced. Then, regarding low total score of fulfillment of customer’s special requirements, Boka Buka also can accept special request of the menu, as long as it doesn't change the main idea of the menu itself. After dining, the customers can be given a tablet and make an account for themselves, which are listed as Boka Buka's customers, to give their request the next time they dine at Boka Buka. The customers can also give their feedback about the service and food they experience at the moment. This will increase the satisfaction of the customers, which will lead to the increase of brand loyalty. Perform analysis and develop against other factors that may affect the Customer Satisfaction and Brand Loyalty, which can be done through further research. It is because Experiential Value affects Customer Satisfaction only for 65.9%, thus there are more factors that influence Customer Satisfaction as much as 34.1%. Moreover, Experiential Value and Customer Satisfaction influence Brand Loyalty for only 64.5%, so there are 35.5% more other factors that influence Brand Loyalty. REFERENCES Agrawal, A., & S, S. (2010). Retaining Brand Loyalty. Copperbridge Media. Datta, V., & Vasantha, S. (2013). Experiential Value, Customer Satisfaction, and Customer Loyalty: An Empirical Study of Kfc in Chennai. Indian Journal of Applied Research. FAO. (2013). National Nutrition Strategy. 2nd International Conference on Nutrition. Grigoroudis, E., & Siskos, Y. (2010). Customer Satisfaction Evaluation: Methods for Measuring and Implementing Service Quality. New York: Springer. Harr, K. K. (2008). Service Dimensions of Service Quality Impacting Customer Satisfaction of Fine Dining Restaurants in Singapore. UNLV Theses. Havaldar. (2010). Business Marketing: Text & Cases, 3E. New Delhi: Tata McGraw-Hill Education. Hill, N., Roche, G., & Allen, R. (2007). Customer Satisfaction: The Customer Experience Through the Customer's Eyes. London: Cogent Publishing. Kabiraj, S., & Shanmugan, J. (2011). Development of a conceptual framework for brand loyalty: A Euro-Mediterranean perspective. Journal of Brand Management, Vol. 18. Lee, S., Shin, H., Park, J. J., & Kwon, O. R. (2010). A Brand Loyalty Model Utilizing Team Identification and Customer Satisfaction in the Licensed Sports Product Industry. ICHPER-SD Journal of Research, VOl. 5, No.1, Line, N. (2012). Experiential Value, Relationship Quality, and Customer Loyalty in Full-Service Restaurants: The Moderating Role of Gender. Journal of Hospitality Marketing & Management. Mohsan, Faizan, Muhammad Musarrat Nawaz., et al. (2011). Impact of Customer Satisfaction on Customer Loyalty and Intentions to Switch: Evidence from Banking Sector of Pakistan. International Journal of Business and Social Science, Vol 2, No.16. 130  Journal The WINNERS, Vol. 16 No. 2, September 2015: 120-130 Moisescu, O. I., & Allen, B. (2010). The Relationship Between The Dimensions of Brand Loyalty. Management & Marketing Challenges for Knowledge Society, Vol.5, No.4. Park, H., & Cha, J. (2011). Identifying Perceived Attributes of Japanese Restaurants. The School of Hospitality Business, 2. Riduwan., & Kuncoro, E. A. (2007). Cara Menggunakan dan Memaknai Analisis Jalur. Bandung: Alfabeta. Supranata, H., & Iskandar, B. P. (2013). Evaluation of Customer Satisfaction Using Service Quality Dimension at D'seuhah da Lada Restaurant. Journal of Business and Management, 5. Wang, C. Y., & Lin, C. H. (2010). A study of the effect of TV Drama on Relationships among Tourists’ Experiential Marketing, Experiential Value and Satisfaction. International Journal of organizational innovation, Vol. 2. No.3 Woodside, A. G., Golfetto, F., & Gibbert, M. (2008). Creating and Managing Superior Customer Value. UK: Emerald Group Publishing Limited.