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The connection between the dependent variable and the independent factors is indicated by the multiple
regression. This study conducted a multiple regression analysis to find out the strongest predictor for consumer intent,
to study the beta coefficient and the greatest value was the most influential variable in this group, according to Julie
Pallant. the analysis of the reverse effect was carried out. Multiple regression is not just one technique but a family of
techniques that can be used to explore the relationship between one continuous dependent variable and a number of
independent variables or predictors (Pallant,2010) The connection between the dependent variable and the independent
factors is indicated by the multiple regression. This study conducted a multiple regression analysis to find out the
strongest predictor for consumer intent, to study the beta coefficient and the greatest value was the most influential
variable in this group, according to Julie Pallant. the analysis of the reverse effect was carried out.
H1 : Does aesthetic values in Petronas CNY advertisement influences the audience perception towards interethnic
relation ?
The variables involved in this hypothesis is the aesthetic values in Petronas CNY advertisement and the
perception towards interethnic relation. The data of degree of agreement from the three questions that respondents
feels about the aesthetic values in the Petronas CNY advertisement. The aesthetic values learnt by audience might
affect their aesthetic perception on what a harmony interethnic relation should be. Since often there are no
understanding between ethnic’s tradition, ritual, color preference, or decorations. Therefore, multiple regression is
carried out to see whether the aesthetic values presented in Petronas CNY advertisement can affect the audience.
a
ANOVA
Sum of Mean
Model Squares df Square F Sig.
1 Regression 4.307 3 1.436 10.995 .000
b
Residual 13.319 102 0.131
Total 17.626 105
a. Dependent Variable: IMP_AVG
b. Predictors: (Constant), AES3, AES2, AES1
Table 5.0
The table 5.0 above shows the multiple regression result output from SPSS statistics software. As we can see
that the significant value (p-value) is .000 (p < 0.05 ) thus hypothesis 1 is accepted.
H2 : Does social values in Petronas CNY advertisement changes the audience perception towards interethnic relation ?
The variables involved in this hypothesis is the social values in Petronas CNY advertisement and the
perception towards interethnic relation. The data of degree of agreement from the three questions that respondents
feels about the social values in the Petronas CNY advertisement. Social values usually are vary from person to person,
every person in a society have different things that they value. In this topic, we want to examine whether the social
values presented in Petronas CNY advertisement make an impact on the audience thus causing them to recalibrate
their perception towards interethnic relation.
ANOVA
a
Sum of Mean
Model Squares df Square F Sig.
b
1 Regression 4.410 3 1.470 11.344 .000
Residual 13.216 102 0.130
Total 17.626 105
a. Dependent Variable: IMP_AVG
b. Predictors: (Constant), SOC3, SOC2, SOC1
Table 6.0
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The table 6.0 above shows the multiple regression result output from SPSS statistics software. As we can see
that the significant value (p-value) is .000 (p < 0.05 ) thus hypothesis 2 is accepted.
H3 : Does religious values in Petronas CNY advertisement changes the audience perception towards interethnic
relation ?
The variables involved in this hypothesis is the religious values in Petronas CNY advertisement and the
perception towards interethnic relation. The data of degree of agreement from the three questions that respondents
feels about the religious values in the Petronas CNY advertisement. In Malaysia, the religious values of each ethnics
is different and absolute but they all share one similarity which is advocate kind hearted to anything you encounter in
life no matter its bad or good. Therefore, we want to test whether the religious value presented in Petronas CNY
advertisement will affect audience perception towards interethnic relation.
a
ANOVA
Sum of Mean
Model Squares df Square F Sig.
b
1 Regression 4.410 3 1.470 11.344 .000
Residual 13.216 102 0.130
Total 17.626 105
a. Dependent Variable: IMP_AVG
b. Predictors: (Constant), SOC3, SOC2, SOC1
Table 7.0
The table 7.0 above shows the multiple regression result output from SPSS statistics software. As we can see
that the significant value (p-value) is .000 (p < 0.05 ) thus hypothesis 3 is accepted.
4.4.2 ANOVA
ANOVA ( Analysis of Variance ) is used to test whether the two or more selected independent variables significantly.
One-way analysis of variance involves one independent variable (referred to as a factor), which has a number of
different levels. These levels correspond to the different groups or conditions. Analysis of variance is so called because
it compares the variance (variability in scores) between the different groups (believed to be due to the independent
variable) with the variability within each of the groups. In this section, hypothesis 4 will be tested.
H4 : Is there a significant different among the age group of the audience towards audience perception of
interethnic relation ?
ANOVA
Sum of Mean
AGE Squares df Square F Sig.
Between Groups 5.444 11 0.495 1.792 0.066
Within Groups 25.961 94 0.276
Total 31.406 105
Table 8.0
4.4.3 T-test
For the following hypothesis, there are one group of variables will be use to determine the hypothesis. The
gender and the audience perception of interethnic. In this hypothesis, we want to know whether the female or male is
more significant results towards the audience perception of interethnic. This is because the perception of gender
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towards one particular issue can be high difference due to their background, experience and nature of their gender.
H5 : Is there a significant different among the gender of the audience towards the audience perception of interethnic ?
One-Sample Test
Test Value = 2
Mean 95% Confidence Interval of the
t df Difference Difference
Sig. (2-tailed) Lower Upper
Gender -13.162 105 0.000 -0.623 -0.72 -0.53
Table 9.0
As we can observe from the table above, the significant value is 0.000 less than the p-value (0.05) . It means that there
are significant difference among the male and female audience towards the perception of interethnic. This might
because the nature of male and female are different in perceiving things.
4.5 Summary of Data Analysis
Table 10.0 summarized the hypothesis that was support from the result of analysis below:
Research Hypothesis Analysis Plan Result
H1 : There is significant relationship between aesthetic value in Multiple Regression Accepted
Petronas CNY advertisement and audience perception towards
interethnic relation
H2 : There is significant relationship between social value in Multiple Regression Accepted
Petronas CNY advertisement and audience perception towards
interethnic relation
H3 : There is a significant relationship between religious value in Multiple Regression Accepted
Petronas CNY advertisement and audience perception towards
interethnic relation
H4 : Is there a significant different among the age group of the ANOVA Rejected
audience towards audience perception of interethnic relation ?
H5 : Is there a significant different among the gender of the audience T-test Accepted
towards the audience perception of interethnic relation ?
Table 10.0
5.0 DISCUSSION, RECOMMENDATION, CONCLUSION
This study should be able to find out the primary cultural value in Petronas CNY festive advertisement.
Moreover, it should also conclude the most significant cultural value in Petronas CNY festive advertisements that
influence the racial relation. Another objective of this study is to examine the most significant element in Petronas
CNY festive advertisements that influence the consumers’ perceived value towards Petronas. Nevertheless, I hope that
this study can increase the knowledge of students and readers.
5.1 DISCUSSION
As a marketing major undergraduate, I know that produce an television advertisement that can present and
deliver cultural values to different ethnics in one country is extremely challenging. Despite the result of the report,
myself feel touched and emotional when I watched these meaning advertisement created by director Ahman Yashim
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as I was doing this research
In this research, we found that the aesthetic values presented in Petronas CNY advertisement had a significant
impact on audience perception towards interethnic relation by using multiple regression. The aesthetic values is about
how one perceives one’s novelty, pureness and contrast. As different ethnics in Malaysia has different color preference,
decoration, or ritual. For example, the Chinese ethnics prefer all decorations using red, gold and yellow color and they
avoid black and white color due to their ethnics believes. Furthermore, we also found that the social values presented
in Petronas CNY advertisement had a significant impact on audience perception towards interethnic relation. The social
values are genuinely differ from every person by their background, experience and big incidents that happened once in
their life. Therefore, it is surprising to find that the social values in the advertisement are able to influence the audience
perception towards different ethnics. Nevertheless, we found out the religious values presented in Petronas CNY
advertisement also had a significant impact on audience perception towards interethnic relation. As we discussed in chapter
4, the religious value of each ethnics is righteous and cannot be changed. However, they all serve the same purpose
which is encourage people to be more kind-hearted to other. Therefore, the religious values in the advertisement
promotes Chinese ethnics religious value can be accepted by different person with different way of perceive a religion.
5.2 RECOMMENDATION
This research studies the cultural values presented in an advertisement. The knowledge that I applied in this
paper are centered towards my field of study which is marketing. However, the field of knowledge that involved in
this study is wide. As for those who reads this research, I recommend to take it further deep into specific ethnics and
find the values that the ethnics have. For further research, those who has high interest for grinding more study about
this topics may look into the field of ethnology and sociology of Malaysia.
5.0 CONCLUSION
To conclude this PSM, the topic that I chose is Advertisement Content Analysis ( ACA ) of Petronas Chinese
New Year festive advertisement. This topic includes many theories and knowledge related to advertising, cultural
values, and perception of audience. The Petronas festive advertisement has been producing many high quality short
films that are touching and meaningful to the audience in Malaysia. The content of the advertisement includes elements such
as family, romantic love and kind-heartedness. Each of the elements in the content delivers very important messages
related to interethnic relation. Petronas were able to deliver these cultural values through visual and audio. As this
festive advertisement is so meaningful to the citizens of Malaysia, people felt appreciated and started to influence their
perception towards different ethnics. Meanwhile, this means that the brand image of Petronas is gradually become
more established and trusted throughout these 20 years. Therefore, researchers tend to find out and analyze what exactly
that the content of the advertisement actually is by using the methodology that mentioned above in section 3.0.
6.0 ACKNOWLEDGEMENT
The title of this study is based on the discussion between me and Prof. Dr. Rohaiziat Baharun, my final year
project supervisor. Also thanks to Dr. Adaviah for giving me many helps and tips to finish this PSM during this
semester. This research proposal is based on the guidance that Dr. Adaviah provided. It included all necessary
information that a PSM proposal needed.
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FYP
AHIBS UTM SKUDAI JANUARY 2022
THE EVALUATION ON THE HOTEL WEBSITE PERFORMANCE TOWARDS
CUSTOMERS RESERVATION
INTAN YUSNIZA, ASSOC.PROF.DR. NOOR HAZARINA BINTI HASHIM
Azman Hashim International Business School, Universiti Teknologi Malaysia, Johor Bahru
*Corresponding author: [email protected]
Abstract
This study focuses on the relationship between website quality, functionality, and usability website design, trust and even the
importance of website dimension and features in influencing internet booking. Because the internet market is growing and raising the
competition, hotels' websites are an efficient strategy to keep customers making reservations directly through the hotel's own website, such
as by offering the lowest confirmed rates, boosting loyalty, and partnering with online agents. There's no denying that hotel distribution has
shifted substantially since the internet's inception. Online travel agencies (OTAs) and hotel websites have gained in popularity in order to
reach a wider range of customers and increase revenue. This study enables hotel industry practitioners in better positioning their own
websites by exposing and comparing the key aspects that influence customers' impressions of booking channels online.
Keywords: website quality, website functionality, website usability, Online travel agency, customer trust.
1.0 INTRODUCTION
The internet and websites have had a significant impact on every aspect of our lives. It has given us the ability to obtain information
fast and nearly for free from anywhere. Travellers re-booked hotel reservations by phone (direct to the customer services) , fax, and
travel agents in the early 1990s. Academic scholars began to support the necessity of ordering travel reservation through online
platforms, such as hotel booking websites, in the mid-1990s, in order to improve service quality and profitability (Bonn et al, 1998;
Walle, 1996; Weber and Roehl, 1999). The internet has transformed the hospitality business by assisting hotels and consumers in
arranging, promoting, and marketing tourism products and services, as well as facilitating communication, online transactions, and
distribution systems for hoteliers and consumers (Buhalis & Law, 2008). As a result, hotels began to create their own websites in order
to serve customers from all over the world by providing them with online access to hotel information. This enhancement attempts to
improve customer service by personalising it and streamlining the reservation process (Baloglu and Pekcan, 2006). The internet has
caused corporations to change how they function and communicate to this extent. Hotels are finding it more difficult to attract tourists
as the number of websites grows. Some hotels have a lot of information on their websites, but they don't include useful information or
organise it in a logical way. Hotel managers must assess such facilities in order to improve, modify, or adapt them on websites to meet
the needs of visitors. Hoteliers would also like to respond to the growing demand to match the style of their websites to the needs of
their customers. In the tourism industry, e-commerce has a favourable impact. In this industry, web technology is broadening the range
of transactions available to online travelers (Dedeke, 2016). Industry of tourism and hospitality. To compete today, people need a
competitive advantage; one approach to establish a competitive edge is to employ information technology (Law et al., 2009). In the
hospitality industry, the Internet has become an integral aspect of hotel operations as well as a source of market research and surveys.
A website can highlight an organization's strengths and flaws (Herrero et al., 2015). In the tourism business, further research on website
information and design, as well as its impact on purchase intent, is required (Dedeke, 2016). The overall excellence or efficacy of a
website in transmitting messages intended for audiences and viewers is referred to as website quality (Wang et al., 2015).
According to the study, the information about the hotel website facility, reservation information, contact information, and
information regarding incentives and privileges are the most regularly discovered information on many hotel websites. Hotel managers
can raise sales volumes, improve brand image, and improve the overall effect of their marketing efforts by building a website. Customer
satisfaction is most likely the key reason a hotel website is created and updated throughout time. According to Law and Chaung (2003)
a hotel website should have information on facilities, customer contact, reservations, information on the surrounding region, and
information about the website's administration. Users should be able to access functions on the hotel's website. So, the goal of all of this
study is to create an ideal website that can attract tourists or customers while also ensuring their privacy and security when making
reservations.
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1.1 CASE COMPANY BACKGROUND
Harmoni One Convention Hotel are 4-star hotel located in Batam Centre, Batam Island, Indonesia. Harmoni One Hotel
is a MICE (Meetings, Incentives, Conferences, and Exhibitions) hotel Harmoni One Convention Hotel & Service Apartments.
Harmoni One is a notable property in Batam Centre, encircled by important industrial buildings and local government offices,
as well as being closer to the Batam Centre Ferry Terminal and Mega Mall Shopping Mall. Harmoni One is a refuge for both
business and leisure travellers, with 292 hotel rooms and 211 service apartments (coming soon) designed in a refined elegance
and timeless charm. It also has 24 first-class meeting rooms and three ballrooms with varying capacities. In a conventional
theatre for meeting setup, the vast pillar-less Grand Ballroom can accommodate more than 1,500 people. It is quickly gaining
a reputation as one of Batam's best venues for successful conferences and corporate activities, as well as offering guests with
a wealth of luxury in its luxurious furnishings. This company has a good website design. The website has a good information
about services and facilities of Harmoni One Hotel. According to their website, the design or the feature are very rarely to
change or modify. So, the feature or the design from year to year is almost same. Based on this problem, the online manager
should know and understand about the intention of travellers to make purchase of reservation towards the website. The hotel
website needs to make a new improvement about the website design. Because now the less often guess booked through the
property’s own website and more to booked manually. On the other hand, many travellers or tourism are more choosing to
book the hotel trough the Online Travel Agencies.
This is the biggest challenges of Harmoni One Hotel to improves their website quality. Many hotels are, without a doubt,
increasing their needs for incorporating information technologies into their whole company operations. Third-party online
hotel booking services are a good example of combining IT and commercial operations in the entire industry. Prior to the
introduction of third-party internet hotel booking sites, customers had to call a hotel reservation department directly. However,
third-party booking services (e.g., Hotels.com, Booking.com, Traveloka.com, Agoda.com, Trip Advisor) provide consumers
with a variety of perks prior to making a reservation. Third-party online booking services have evolved into a range of mobile
platforms, including smart phones (Android, iPhone) and tablet PCs, as they have become more sophisticated. For example,
consumers can utilise mobile apps on their smartphones to book accommodations. Because the booking is performed on third-
party online booking sites and consumers are not transferred to a hotel's website, the mobile platform has made hotel booking
more easily.
1.1.1 SWOT ANALYSIS
These are SWOT analysis to the online reservation trough Harmoni One Hotel websites. This table explains
the analysis on customer reservation online booking through the hotels websites. For the strength: When Harmoni
One hotel is active on their website it will give benefits to the company such as increase the amount of promotion
activity. For the customer it is also easy to make a reservation directly using the Harmoni One Hotel Website. When
Harmoni One Hotel is active on their website, it also can improve the internet quality also provide training to
reservationists who are not familiar with the extranet. But doing online reservation through websites also gave the
weaknesses to the company because it was reliant on the internet also gave an impact on the functionality of website
design. On the other hand, using the website it can be used for campaigns for online reservation. But, the cancellation
and false booking are the risk for the company and customer when they are doing online reservation.
Strengths Weaknesses
1. Increase the amount of promotion 1. Online reservations are reliant on the
activity internet and website design
2. Improving internet quality functionality.
3. Provide training to reservationists who 2. The extranet's complication
are unfamiliar with the extranet.
Opportunity Threat
1. Using the website channels as a media 1. Cancellation, no-show, and false bookings are all
campaign for online reservation. considered risks that result in a financial loss.
2. Customers can make last-minute
reservations thanks to the availability of
internet reservations.
Table 1. SWOT Analysis
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1.2 PROBLEM STATEMENT
With the rapid expansion of the internet and electronic booking channels for hotels, the hotel industry and third-party
organizations needed to understand why customers choose to use the hotel website to make purchases or book reservations.
To address these challenges, the purpose of this study was to see if a three-dimensional framework about the usability,
functionality, and quality of a website's design also customer trust could help customers make reservations. In this study, the
intention to book or use was frequently used to assess the quality of websites and e-services. The process of locating hotel
availability could be automated to save time for both tourist information center and hotel personnel. We suggest a website-
based system that allows hotel employees to add listings to a central database. The personnel of the tourist information center
might then launch an application to access the database and receive data on the number of rooms available and their costs.
The tourist information office spends a significant amount of time calling hotels to confirm availability. In addition, many
smaller hotels are unable to promote their availability to visitor information centers.
1.2.1 PROBLEM DIAGNOSE
Figure 1. Fish bone
Website Website Website
Usability quality functionality
Design, Layout, Evaluation website
Contact no Quality graphic, picture performance
towards customer
reservation
activity Third party
Online Travel
Trust Agency
1.3 RESEARCH QUESTION
There were gaps in the research evaluation on the relationship between website quality, website functionality and website usability
also customer trust towards the aim of consumer reservation in the hospitality industry. The research question that guided this study
was as follows, based on the study's purpose:
i. How does Harmoni One Hotel website perform based on the quality, functionality, usability also customer trust towards the
customer reservation?
ii. How does the online travel agency influence website quality performance towards customers reservation?
1.4 RESEARCH OBJECTIVE
This paper is to study:
i. To evaluate Harmoni One Hotel website design based on website quality, functionality and usability also customer trust
among the customer reservation.
ii. To evaluate the Online Travel Agency influence on the Harmoni One Hotel website's performance.
1.5 SIGNIFICANCE OF RESEARCH
This study was supposed to contribute both academically and practically. First, this study is to evaluate the Harmoni One hotel
website performance among four dimensions of website design (quality, functionality, usability and customer trust) towards the travellers
or customer reservation. Second, to evaluate that Online Travel Agency was influencing the Harmoni One Hotel towards customer
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reservation. By identifying the elements that influence client usage of online booking websites, this study can be included to help website
developers and hoteliers assess the quality of their websites. Improvements could be made to the website's quality or appearance, as well
as comparing customer perceptions across other booking channels, such as OTAs. This can help Harmoni One Hotel website performance
and hospitality services providers better understand the advantage of their competitors and better position in their own website
performance.
1.6 DEFINITION OF TERMS
Hotel brand website: Hotel chains created a website to encourage direct bookings.
Information quality: The amount to which a website may serve as a good source of information and assist a user in
obtaining current, accurate, and complete information.
E-Commerce: Computer-mediated instruments are being used to purchase and sell information, products, and
services.
Website quality: Users' assessments of a website's aspects that fulfil their needs and indicate the website's overall
superiority.
Online travel agency: E-commerce companies that specialize in providing a wide range of travel-related services and/or
products.
Purchase intention: The user's desire to develop an online information exchange relationship with a web store and conduct
online transactions with them.
Website functionality: how a user may navigate the website, get the information they're looking for, and/or buy the item
they want.
Website usability: From the user's perspective, this is a measure of whether, or not a website is effective, easy to browse,
and efficient.
2.0 LITERATURE REVIEW
The goal of this chapter is to review research on website design's effectiveness in terms of client reservation. In addition, this
chapter discusses the three dimensions of website design (quality, functionality, usability and customer trust) as well as the impact on
website performance. The website dimensions are used to assess the performance of a website and to influence client reservations. The
literature on the relationship between website quality, functionality, usability and customer trust is also reviewed in this chapter. The
internet's role in contemporary hospitality and tourism. With the internet's phenomenal growth and success, the communication
business is now migrating to an online format. The increase of public access to this media was recognized by hospitality-related
businesses, who began to promote their services and products over the internet (Au & Ekiz, 2009). Customers could look for and
purchase travel-related services directly via the internet, with no time or geographic limitations. In the past, tourism was frequently
thought to be a natural result of a territory's natural and cultural endowments. According to this viewpoint, the responsibility of the
hospitality industry is restricted to the provision of services to tourists and cannot impact demand levels. According to Le Blanc &
Nguyen (1996), marketing efforts should be focused on emphasizing the location's environmental attributes in order to attract new
customers. The profitability of a hotel with good service quality would eventually improve. Individual hoteliers must be able to please
clients better than their competitors in a competitive hospitality market that offers uniform services. To differentiate itself from
competition, hotels must achieve a high degree of client satisfaction. Client pleasure is the foundation for customer loyalty and, as a
result, a long-term connection. This increases the enterprise's loyalty stock, which improves the company's image. Relationships with
guest leads are being cemented. A dissatisfied customer, on the other hand, may pose a threat to the company.
The quality of a website plays a crucial influence in determining purchase intent. The willingness and desire of a customer to
participate in online transactions, including the process of evaluating the website's quality and information, is referred to as online buy
intention. The desire of customers to book rooms through a website is known as purchase intention in online hotel booking. At this
step of the pre-buy process, hoteliers must determine the elements that impact purchasing intent. If the positive buy intention is stronger
than the weak purchase intention, the number of purchases will rise. Potential guests can use the internet to learn more about the hotel's
amenities. Guests can also compare accommodations without having to contact the hotel or travel agents, as well as plan itineraries.
For example, Agoda.com provides tourists with a range of hotel information in a persuasive and appealing manner. Hoteliers have been
obliged to invest substantial funds and time in developing and maintaining their own direct booking websites as internet technology
has advanced. As a result, hoteliers must be aware of the elements that influence their clients' decision to book hotel accommodations
online. Hotel websites provide hotels a great opportunity to increase revenue by increasing the amount of reservations made through their
own direct booking website. Hotel websites and online travel company websites are the most common online booking methods. The
hotel website is an important tool for customers to look for hotels and make decisions about where to stay. The most influential factor
in increasing hotel sales is promotional offers on hotel websites. The online booking website should be interactive, with two-way
contact between the user and the website. The user of a website should be able to manage their own surfing experience. Furthermore,
interactive technology should be attentive to website users by offering quick responses to any questions and facilitating online
transactions.
Previously, website performance was overlooked as a source of worry. Large sums of money were spent on website construction
with little thought given to their utility in attaining specific company goals. In most cases, the hotel did not go to great lengths to
categorize their website into sections that would appeal to different types of visitors. The hotels were not well-known in this way. Hotel
reservations can be made online from inside the hotel's immediate vicinity or from another country on the continent, thanks to
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technology advancements. After registering as a guest on a hotel website, customers can book and pay for their stay in minutes.
Customers are asking for this quick way of providing services, which is similar to self-service. Because all transactions must be
completed by depositing the amount, the approach is simpler and safer. As a result, the website must include a direct link to their bank
accounts as well as a payment method to accommodate consumers who use multiple currencies. Customers are stated to make
reservations, and once money is received, a notice is given through email, text, or phone call. For any customers, both domestic and
international, the process is simple and enjoyable.
2.1 ISSUE AND CONTEXT
The travel agency is an important part of the travel industry since it meets consumers' needs, such as making hotel
reservations, when they are needed. Customers and travel agents communicate through travel agencies. Because of the
internet's participation, this intermediary has evolved into an online travel agency. The internet has had a significant impact
on this middleman. Tourism may quickly access information on the internet and make informed hotel reservations. The impact
of internet development on hotel distribution and the price of their products, as well as on hotel services, has been enormous.
It has been demonstrated that tourism distribution has been automatically transitioning into the current era from the
conventional period of the World Wide Web. It is commonly used by customers to look up information on service and cost.
Travelers may now simply research airfare and lodging rates, as well as compare costs among hotels. Travelers can quickly
finish their bookings online once they are happy.
A travel agency acts as a liaison between clients and travel industry suppliers, allowing customers to acquire useful
information and help about their travel destination. Nowadays, companies provide internet services for booking airline tickets
and hotel reservations. Travelers frequently go to their website and make decisions about their travel costs and amenities
without having to waste time going to the airport. Importantly, the internet travel agency just provides information; no tangible
things are offered. A third-party distributor, often known as an internet wholesaler, is another name for this type of travel
business. The existence of the internet has both beneficial and negative consequences in the travel sector, which cannot be
denied. The internet has a beneficial impact since it is user-friendly, provides consumer happiness, and is less expensive. The
internet allows online travel agencies to promote their services in a reasonable and cooperative manner. As a result, no service
providers or specific personnel are required for customer assistance. As a result, improvements in online booking or
reservation systems must be considered, as a large number of consumers rely on these systems these days. The internet travel
firm specializes in online hotel reservations, automobile rentals, and other tourism-related services.
2.2 WEBSITE EVALUATION
Website evaluation is defined as finding the right and comprehensive set of user requirements, as well as assuring website
performance in terms of providing relevant information that meets user expectations and establishing usability goals.
According to the available literature, website evaluation should be done along the axes of functionality and usability. The
quality information, which includes the website content, is referred to as website functionality. For example, Nielsen (1993,
p1) Learnability, efficiency, memorability, low error rate, and satisfaction were the five qualities used to assess usability. Then
there's language, layout, and graphics, information, user interface and navigation, and overall usability. Through the hotel's
website's instant messaging capability, customers can communicate with hotel staff. As a result, the basic features have become
outmoded and insufficient for practitioners to assess website performance in order to develop website evaluation metrics.
Hotel websites are likely to become dynamic in the near future as a result of Big Data, adapting on-the-fly and providing
individualized information to each customer. The same hotel will have several websites (information) available to different
customers. When a person uses Google to search for anything, it is now common for getting some information, connected to
past searches or websites that he or she visited to surface. Hotel websites are predicted to become dynamic as Big Data
becomes more widely adopted, i.e., they will adjust to the consumer's digital profile/footprint on-the-fly, providing
individualized information to each customer. In the not-too-distant future, each customer will have his or her own hotel-
specific information.
2.3 WEBSITE MEASUREMENT
Website measurement is required to monitor and improve the quality of the website, as well as to evaluate the website
using both expert and user-focused methodologies. A website is a collection of online pages that share a common theme, such
as a person, company, or organization. There are numerous approaches for evaluating a website. Usability is one of the major
factors that determine the successfulness of the website. Second is about website quality. How the website has a good
engagement with the visitors. Website functionality is also important for example for the hotel company it is more important
to put all the information into the website also the feature.
2.4 HYPOTHESIS DEVELOPMENT
2.4.1 WEBSITE FUNCTIONALITY
Website functionality refers to what a website can and cannot accomplish, as well as how it functions. It covers
everything from the actions that a user can take to the dynamic material and interactivity. The appropriate
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functionality is critical to a website's success, and it should be a priority during the planning stage. The content of
the information from the website is referred to as website functionality. The term "functionality" relates to the
standpoint of appropriate material, whereas "usability" refers to how effective and joyful the website is for showing
products and services. The ease with which a person may navigate a website and obtain the information they require
or purchase the product they desire is referred to as website functioning. The appearance of a website design may
be attractive to the eye. When it comes to visual design and appeal, prioritising usefulness above aesthetics can pay
off big time. A well-designed website is more likely to attract more visitors, keep them on the site for longer, and
turn them into leads and, finally, customers.
H1: The dimension of website functionality has significance influence on the performance website hotels.
2.4.2 WEBSITE QUALITY
The functionality and usability of hotel websites are two factors that reflect their usefulness and efficacy (Au
Yeung and Law, 2004). The website system of a hotel usually serves two purposes. As consumer views and online
operations become a determinant, website satisfaction is a crucial notion in e-commerce. Consumers' opinions of
the website's quality are based on elements that suit the needs of customers and give them a positive general view.
Attractive websites can improve a consumer's inclination to buy. The number of visitors to a website influences its
quality. However, the most important element to consider when evaluating a website is the quality of the information
supplied, the quality of service interactions, and the quality of human-computer connection. The first step is to
provide information to customers so that they can make an informed decision about whether or not to buy something
online. From the perspective of the consumer, internet booking offers value by offering free information. The
primary goal of running a website, from the standpoint of a management, is to generate revenue through online
business. Hoteliers will benefit from online customer exchanges since more people will visit the website. The
customer's decision to make an online reservation is heavily influenced by the website's quality. Hotel website
development has improved throughout time as a result of technological advancements. Over the course of the year,
a growing number of new hotels open their doors, squeezing into an already crowded market. The approach is
determined by how well a modern hotel invests in the development of its website design. What a hotel exhibits and
what it does not display on its website, and how to maintain the website's quality. The service provided may be the
same, but how the same service is viewed on the internet depends on the website's quality. Quality website creation
has long been employed by hotels as a competitive advantage. The quality of a website plays a vital role in
developing favorable attitudes, trust, and consumer satisfaction with it, all of which influence a customer's decision
to use it for a transaction.
H2: The dimension of website quality has significance influence on the performance website hotels.
2.4.3 WEBSITE USABILITY
The usability of a website refers to how simple it is to utilize an object. Anything with which that individual
can interact should be usable. Usability has been described in the context of websites and software applications as
the ease with which an average person can utilize the website to accomplish a specific purpose. Learnability refers
to how simple it is for a new user to complete a job for the first time, such as visiting a hotel's website. Memorability
refers to how easy it is for customers to return to a website after not using it for a while. After becoming familiar
with the site, efficiency refers to how rapidly users can execute tasks on it. Errors refers to the number of errors
users make while using the website, their severity, and how easy they are to recover from. Satisfaction refers to
whether users enjoy the website's design, while errors refers to the number of errors users make while using the
website, their severity, and how easy they are to recover from. The major reason that usability is so crucial is that
there are so many similar websites that if the first one they visit is not useful, they will move on to the next one.
This is because boosting usability is a wonderful way to attract consumers to visit your website instead of one of
your competitors', and it's also a strategy that keeps customers returning to your site. Indeed, high-quality, user-
friendly websites attract customers and give a site a competitive advantage over the competitors. Website usability
defined website usefulness into four categories: usability, effectiveness, customer satisfaction, and website
responsiveness. The design of a website affects its usability. It will assess the usability of a website by focusing on
the information provided and the perceived ease of use by customers. (Hassan and Li, 2005) looked at a variety of
factors to determine website usability, including screen uniformity, consumer interaction, and media consumption.
H3: The dimension of website usability has significance influence on the performance website hotels.
2.4.4 ONLINE TRAVEL AGENCY (OTA’S)
Hotel companies can increase their profits by using online channels such as websites, shifting their focus to
the hotel and tourism industries, and also using online travel agents, thanks to the advent of the internet. Due to the
nature of the travel industry, online booking has become a popular option for tourists. Consumers may now get
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precise and dependable hotel information, make bookings in the shortest time possible, at reduced costs, and with
few inconveniences. With the advancement of information and communication technology, notably the internet, a
new breed of traveller emerged who were less interested in mass tourism packages. However, online hotel bookings
are now available through online travel agencies. This is one of the difficulties in designing a hotel website that will
entice tourists to book hotel reservations through the website. Because a large portion of the tourism industry uses
travel web agencies to book hotels. Many travellers have not fully adopted online travel booking for a variety of
reasons, including a lack of safe payment methods, the need for human touch and quality service, and a lack of trust
in technology (Peng,Xu, & Chen, 2013). Many tourists prefer to book through travel agencies rather than online
because of the social interface, expertise, and time saved on research. Travellers' preferences for online booking are
influenced by a number of factors. They include internet-based features, characteristics of online vendors, and
human qualities (Hashim, Murphy, & Law,2007). Consumers will favour online reservation systems with low-
density content, high-speed performance, behaviour adaptation, customization features, and low memory density
(Magnini,2011).
Consumers faced issues in traditional hotel booking methods such as travel agencies, broadcast media, printed
advertisements, and so on, according to previous research. With the rise of the internet, many online platforms now
allow online consumers to make more informed judgments based on extensive hotel information, such as individual
remarks or experiences, as well as online reviews from previous customers on hotel booking websites. While
consumers may easily acquire information about the hotels, creating trust in the website is a major factor in their
decision to book. Consumers who trust an online website are more likely to spend less time looking for information
about the website or seller, as well as less time transacting with the website. While a lack of confidence can cause
consumers to avoid making purchases online, many consumers who plan to travel are concerned about their safety.
When a customer has faith in a website, they are more likely to make a purchase from it. Consumers' propensity to
purchase from an online store is positively influenced by trust in the online store, according to online purchase.
H4: The dimension of online travel agency has significance influence on the performance of website hotel.
2.4.5 TRUST
Online hotel booking website has become an important tool in the marketing of hotel services. The widespread
use of information and communication technologies has enabled companies, especially in the tourism sector, to
reach customers directly (Zhou,2004). Tourism is one of the fastest growing industries worldwide, and the
importance of internet technologies in the sector is increasing rapidly (Buhalis,2004). Hotel booking websites have
grown in importance as a tool for selling hotel services. Due to the simplicity of reviewing information and making
online bookings, customer use of online booking technologies has lately increased. The concept of trust, defined as
the degree to believe that the counterparty will act responsibly and fulfill the expectations of the trusting party
without taking advantage of security gaps (Gefen & Straub, 2000). The concept of trust is especially important in
industries where e-commerce is widely employed, such as tourism. Trough these website, the users can easily access
a lot of information such as overnight prices, transportation facilities, hotel location and hotel reviews (Walek et al,
2016). When renting a room in a faraway city or country, a customer will prefer an online hotel booking website
that they can trust rather than one that lacks clear clues and simply shows a representative picture. Understanding
the structure and formation mechanism of trust has become an essential subject of study with the rise of online hotel
booking websites, since a lack of trust may be one of the main reasons why consumers do not like an online hotel
booking website. A user who has a high level of trust in a website is more likely to go there and make a purchase.
Trust is the customer belief in the company benevolence, integrity and capability (Bilgihan & Bujisic, 2015).
Because the degree of uncertainty of economic transactions in the virtual world is larger than in traditional
environments, the idea of trust in e-commerce is crucial.
H5: The dimension of trusthas significance influence on the performance of website website hotel.
2.5 RESEARCH FRAMEWORK MODEL
We created a framework for describing hotel websites that can be used to take into account the quantity of information
available to the customer. Customers now can investigate and can comprehensively characterize the information that hotel
websites can display, which can be used in many places throughout the world, thanks to this framework and study. Website
attributes may be quantified without subjectivity using the website indicators framework given in this study, and hoteliers can
simply draw conclusions regarding their own websites. Nowadays, most tourists searching for rooms and examining hotel
websites may quit them if they provide inadequate information, are unappealing, or are not tailored to their specific needs.
Customers will try to find another hotel using their fictitious information in these scenarios. Hotel websites are expected to
adjust to each consumer's particular traits in the near future, based on the consumer's web profile. This study will aid in the
description and characteristics of all (current) features and dimensions available on hotel websites, so that researchers,
hoteliers (and web developers) can assist in the development of dynamic websites that adjust on-the-fly to each consumer.
Figure 2.Framework
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Website
Functionality
H1
Website Quality
H2
The evaluation on
Website H3 the hotel website
Usability performance
towards customer
H4 reservation
Online Travel
Agency H5
Trust
HIPOTHESIS
The dimension of website functionality has significance influence
H1 on the performance website hotels
The dimension of website quality has significance influence on
H2 the performance website hotels
The dimension of website usability has significance influence on
H3 the performance website hotels
The effect of the Online Travel Agency has significance influence
H4 of the performance website quality towards the customers
reservation
The dimension of customer trust has significance influence on the
H5 performance website hotels
Table 2. Hypothesis
2.6 CHAPTER SUMMARY
In this chapter, provided an overview of theories related to website assessment, and discussed the underlying dimensions
of website quality, functionality, usability, trust and also another factor that influence customer reservation Hoteliers and
academic researchers have been working hard to improve the quality of hotel websites and achieve the goal of generating
income. This study evaluated the various terminology and expressions used for hotel website evaluations through a
comprehensive literature analysis and chronologically tracked the changes in website evaluation models from the late 1990s
to early 2018. The findings backed up the importance of information quality and showed that, in the last decade, website
rating approaches have become more diversified than before. To make the hotel websites more competitive in the market,
hoteliers should ensure the quality of their hotel information. A hotel's website should have accurate, comprehensive, and up-
to-date information (Marcussen, 2008). In addition, after accomplishing the goal of basic level information distribution, hotel
management should make an effort to achieve high-level information communication by employing their websites for
successful CRM rather than only for information dissemination. The following chapter will discuss the methodology used in
this study.
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3.0 RESEARCH METHODOLOGY
Starting from the beginning. An exhaustive web search was conducted to capture the information services supplied on hotel
websites. The literature contains a lot of references to internet searches for identifying and studying online practice (sigala,2003). The
top hotel might be considered the most active on the internet. However, because hotel websites are continually expanding and evolving,
they should offer additional functions. A new web search should be conducted in order to fulfil contemporary wants and demands. The
goal of this search should be to find as many information aspects as possible from today's websites. According to Au Yeoung and Law
(2003), the amount of time it takes to evaluate a website is a crucial aspect in determining whether customers are willing to make
reservations on hotel websites. According to Udo and Marquis (2001-2002), the most critical component in the efficiency of a website
is the download time. According to Mehrabian and Russell (1974), atmospheric data is turned into useful information and used to
understand the environment before consumers make any decisions. The customer's emotional state changes as a result of the
atmosphere. All of the above characteristics may persuade travelers to make an online purchase. Due to the rapid growth of the internet,
it is critical to understand how potential customers perceive hotel websites, as this information may indicate how online hotel usage
can be increased and a hotel's profitability improved. As a result, the hotel company must focus more on making the hotel website
more appealing to any web visitor.
3.1 RESEARCH DESIGN
The research design of this study is descriptive quantitative research design. This study used a survey method in collecting
data from prospect respondents. This study uses a quantitative method to test the effectiveness of website dimension
(functionality, usability, quality) towards the intention of customer reservation. This study was finding the users who had
made booking hotels through the websites or through the OTAs (online travel agency) also measuring the customer trust. The
research paradigm for this study was based on the quantity approach, with a structured questionnaire serving as the data
collection tool. The quantitative technique was determined to be the most effective. By surveying a larger number of people
with a preset set of variables, it allows the researcher to compare and do statistical aggregation. Furthermore, the quantitative
method might be used to prove five hypotheses presented in this study. The questionnaires used in the study were separated
into two sections: the first piece looked into the demographics of the respondents, and the second section was the survey
question.
3.2 POPULATION AND SAMPLING
The study's target group is 150 people over the age of 18 who are active travelers or have experience booking hotels
through online or OTA's in Indonesia. The sample size was chosen by the precision and confidence with which the parameters
were estimated, as well as the population's variability. In general, sample statistics should provide a dependable and valid
figure that allows findings from the sample to be generalized to the population under research (Sekaran & Bougie, 2016).
Because it was deemed appropriate for this investigation, the intended sample was chosen using non-probability simple
random sampling. As a result, the study followed Hair et al (2010)'s recommendation of using a minimum of one hundred
respondents in a study. The minimal sample size required for this investigation was 119, which was calculated using an effect
size of 0.05 and an alpha error probability of 0.05. The respondents in this study are those who have made a reservation or
booked a hotel room online, either directly through the hotel's website or through an online travel agency. The collection of
questions asks respondents to select from a list of options in the questionnaire, such as strongly agree, agree, disagree, and so
on.
3.3 DATA COLLECTION METHOD
For this study, “Snow Ball” sampling are chosen to be a method for collecting data. Using quantitative technique (Likert
scale questions) was deemed most appropriate. For example, the questionnaire consists of part A, B, C, D, E and F are the
sections of the questionnaire. Part A consists of questions straightforward about demographics. Part B questions about the
information of website functionality. Part C, on the other hand, asking about website quality. Part D factor measuring the
usability of a website. Part E followed with a question about information quality. Finally, respondents were inquired about in
Part E about their experiences doing reservation or booking hotels through online travel agencies. The series of questions asks
respondents to choose from a list of options. The strength of an answer is determined using a Likert scale, which includes
levels of satisfaction. The method for this study is quantitative research, the process of collecting, interpreting, analyzing the
numerical data. It can be used to look for patterns and averages, make predictions, test causal linkages, and extrapolate results
to larger groups. Quantitative research gathers data from current and potential consumers by employing sampling methods
and sending out online surveys, polls, questionnaires, and other forms of data collection, the results of which can be
represented numerically. After gaining a thorough understanding of these figures, you may forecast the future of a product or
service and make modifications as needed. The statistical approaches used to acquire quantitative data from the research study
are generally used in quantitative outcome research in the social sciences. Researchers and statisticians use mathematical
frameworks and ideas related to the quantity in question in this research strategy. Quantitative research templates are objective,
detailed, and, in some cases, investigative in nature. This research strategy produces logical, statistical, and unbiased findings.
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Data was collected in an organized manner and on bigger samples that were representative of the total population. So, in this
study, the research will be conducted by survey or making questionnaires and will be distributed to all people.
3.3.1 QUANTITATIVE RESEARCH
Quantitative research, or the process of collecting and interpreting numerical data, is the method used in this
study. It may be used to find patterns and averages, predict outcomes, test causal relationships, and extrapolate
results to bigger populations. Quantitative research is defined the research using measurable data and statistical,
mathematical, or computational approaches. Quantitative research collects data from current and potential
customers through sampling methods and the distribution of online surveys, polls, questionnaires, and other types
of data collection with numerical findings. User can forecast the future of a product or service and make necessary
changes after having a full comprehension of these numbers. In the social sciences, the statistical procedures used
to get quantitative data from the research study are commonly employed in quantitative outcome research. In this
research technique, researchers and statisticians apply mathematical frameworks and ideas connected to the quantity
in question. The objective, thorough, and, in some circumstances, investigative nature of quantitative research
templates is evident. This research technique yields results that are logical, statistical, and unbiased. Data was
gathered in a systematic manner using larger samples that were representative of the entire population. As a result,
in this study, the research will be conducted by a survey or the creation of a questionnaire, which will be distributed
to all participants.
3.3.2 RESEARCH INSTRUMENT
In this study, the questionnaire is the primary research tool. The research instrument was created using the
factors that were studied in the study. The elements in the instrument were adapted from earlier research to meet
the demands of the current study. The questionnaire was broken down into six (six) components. Section one (1)
contains demographic data, whereas section two (2) contains survey questions about website functionality, quality,
usability, and trust, as well as the effect of online travel agencies. Because quantifiable data is more relevant and
easier to investigate, quantitative approaches were used in this investigation. Furthermore, the information was
gathered by a self-administered questionnaire. Aside from that, the researcher gave each of the respondents a
questionnaire and collected it once they completed it. In order to achieve the study's goals and hypotheses, primary
data was collected through a field survey. As a result, a self-administered questionnaire comprising items taken
from previous research and hotel websites was established. As part of the study, respondents who have utilized
online travel agency services were handed questionnaires. Simultaneously, this study determines the linkages and
components that have the most impact on tourists while making hotel reservations.
3.3.3 PILOT TEST
The surveys were distributed to actual respondents after well before with specialists. This was done to see if
the questions were clear, the wording was appropriate, and the time required to answer the questions was reasonable.
This step was taken to help discover any potential flaws in the questions that could have an impact on the study's
outcomes in the future. The pilot test included 30 participants who were willing to complete the questionnaires. The
reliability test used IBM Statistical Package for the Social Science Software (SPSS) to enter and analyse the data
from the pilot test. According to Hair et al. (2010), a Cronbach Alpha value of greater than 0.6 was considered
satisfactory for dependability. The pilot test confirmed that all constructions met the suggested Cronbach's Alpha
value of more than 0.6.
3.4 CHAPTER SUMMARY
In this chapter, describe the research methodologies used in this study. This chapter began by presenting the research
design; including the framework, method of research also research tools using questionnaire development. The second, how
we evaluate the hypothesis based on the framework. The data analysis based on the methods utilized in this study will be
discussed in the following chapter.
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4.0 DATA ANALYSIS
The Pearson Correlation Coefficient analysis in Statistical Package for the Social Sciences was used to analyse the questionnaires
that met the eligibility criteria (SPSS). SPSS was used to examine all of the data. The initial step was to perform a descriptive analysis
(standard deviation and mean). After that, a reliability test and multiple regression were run to see how the independent variable affected
the performance of the hotel website in terms of customer reservations. Because of the large amount of data in the study, the software
was utilised to analyse it. It would make the researcher's analysis and results easier and more accurate.
4.1 DEMOGRAPHIC ANALYSIS
The table shows the respondent’s demographic analysis, which consist of gender, age, occupation and frequency of
booking hotel online in 1 year.
Demographic Category Frequency Percentage
Gender Male 51 34%
Female 99 66%
Age 18-25 years old 128 85.3%
26-35 years old 9 6.0%
36-45 years old 10 6.7%
>45 years old 3 2.0%
Occupation Student 98 65.3%
Government Employee 9 6.0%
Non-government employee 38 25.3%
other 5 3.3%
Frequency of booking 1-5 times 124 82.7%
hotel online/year 6-10 times 17 11.3%
11-15 times 7 1.3%
>15 times 2 4.7%
Table 3. Demographic Analysis
4.2 DESCRIPTIVE ANALYSIS
The following tables show the questionnaires’ items and the descriptive analysis of standard deviation for each variable
(Cornbach Alpha) to measure the reliability of the questionnaires’ items.
Dimension/variable Cronbach’s Alpha Conclusion
Website Functionality 0.779 Reliable
Website Quality 0.918 Reliable
Website Usability 0.809 Reliable
Online Travel Agency 0.831 Reliable
Customer Trust 0.839 Reliable
Table 4. Reliability Analysis
The Cronbach's alpha revealed the reliability for each of the study variables in the table above. Cronbach's
alpha value for website functioning is 0.779, Cronbach's alpha for website quality is 0.918, Cronbach's alpha for website
usability is 0.809, Cronbach's alpha for online travel agency is 0.831, and Cronbach's alpha for customer trust is 0.839,
according to the table. A reliability coefficient or Cronbach' alpha of 0.7 or above should be achieved by the research
instrument's internal consistency (Hair et al,2010). The Cronbach's alpha score for each variable in the table above is
greater than 0.7, indicating that the instruments were considered reliable for this study.
4.2.1 WEBSITE FUNCTIONALITY
Reliability Statistics
Cronbach's Alpha
Cronbach's Alpha Based on N of Items
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Standardized
Items
.779 .786 5
Item Statistics
Mean Std. Deviation N
WF1 The hotel website should 4.66 .600 150
have a good visual design
WF2 The hotel website needs to 4.71 .560 150
have a best quality photo
WF3 The hotel websites should 4.63 .640 150
have a more picture about the hotel
and the website must adjust to the
screen size of the browser without
the need to pinch or zoom to see
the content adequately
WF4 The hotel website Display a 4.55 .710 150
linked hotel logo at all times so it’s
easy to return to the homepage
WF5 The hotel websites should 4.68 .594 150
have the feature to click-to-call
button and Google Maps
integration so I can easily interact
with the hotel
4.2.2 WEBSITE QUALITY
Reliability Statistics
Cronbach's Alpha
Based on
Cronbach's Alpha Standardized Items N of Items
.918 .919 10
Item Statistics
Mean Std. Deviation N
WQ1 The hotel website displays the 4.60 .645 150
useful current information
WQ2 The hotel website provides me 4.37 .763 150
with all the information I need
WQ3 The information provided by 4.35 .786 150
the hotel website is accurate
WQ4 In general, the hotel website 4.39 .713 150
provides me with high-quality
information
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WQ5 The performance of the hotel 4.37 .782 150
website is reliable
WQ6 The hotel website can be 4.30 .766 150
adapted to meet a variety of needs
WQ7 The hotel website provides me 4.43 .680 150
with information that benefits me
WQ8 The hotel websites provide me 4.56 .690 150
with prices and room pictures
WQ9 The hotel websites usually 4.31 .820 150
provide in-depth information
WQ10 The information from the 4.29 .789 150
hotel website always catches my
attention
4.2.3 WEBSITE USABILITY
Reliability Statistics
Cronbach's Alpha
Based on
Standardized
Cronbach's Alpha Items N of Items
.809 .813 5
Item Statistics
Mean Std. Deviation N
WU1 The hotel websites should 4.41 .796 150
have the file of the hotels facility
so I can read all from the file
WU2 The hotel website should 4.61 .644 150
be easy to read, navigate and
easy to understand
WU3 The hotel website must 4.53 .702 150
show the best advertising or
promotion
WU4 The contacts of the hotels 4.51 .739 150
should be visible on every page
of the site, in both the desktop
and mobile versions on the
website
WU5 The hotel website need 4.66 .611 150
give the currency information
(up to date)
4.2.4 ONLINE TRAVEL AGENCY
Reliability Statistics
Cronbach's
Alpha
Based on
Cronbach's Standardize N of
Alpha d Items Items
.831 .832 5
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Item Statistics
Mean Std. Deviation N
OTA1 Online Travel Agency 4.41 .837 150
really help traveler to book hotel
reservation
OTA2 Online Travel Agency 4.36 .813 150
having an important role in the
hotel reservation
OTA3 Online Travel Agency 4.41 .779 150
help the hotel company
increasing the number of
reservations
OTA4 Using Online Travel 4.36 .943 150
Agency for hotel reservation is
much easier than direct into their
website
OTA5 Using Online Travel 4.17 .954 150
Agency for hotel reservation is
trusted
4.2.5 CUSTOMER TRUST
Reliability Statistics
Cronbach's Alpha
Based on
Standardized
Cronbach's Alpha Items N of Items
.839 .842 6
Item Statistics
Mean Std. Deviation N
CT1 I believe the hotel website 4.33 .798 150
would be trustworthy
CT2 I believe the hotel website 4.37 .719 150
would be reliable
CT3 I believe the hotel website 4.41 .715 150
would be responsible
CT4 I would have confident 4.32 .814 150
with the hotel website
CT5 My willingness to book the 4.40 .794 150
hotel with good website
performance is high
CT6 If I was to discuss this 4.27 .843 150
hotel website with others, I
would probably say positive
things
4.3 MULTIPLE REGRESSION
Variable Sig Conclusion
Website Functionality <0.01 Accepted
Website Quality 0.001 Accepted
Website Usability 0.001 Accepted
Online Travel Agency 0.01 Accepted
Customer Trust <0.01 Accepted
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Table 5. Analysis Hypothesis
The multiple regression method was used in this study to gain a better understanding of the relationship between website
functionality, quality, usability, and trust, as well as the role of online travel agencies in the performance of hotel
websites.Because multiple regression presupposes that the sample size is large enough in this investigation, the Tabachnick
and Fiedell (1996) rule of thumb was used to estimate the sample size. The equation indicates that a sample size of greater
than 106 instances is required.The sample size for the multiple linear regression analysis in this study is 150 samples, and the
researchers decided that the sample size is sufficient. All variables in the table show a significant association. The p-value must
be 0.05 or p <0.001 to determine the significance.
5.0 CONCLUSION
In this research the main aim was to identify the dimension or the variable of website functionality, quality, usability, trust and also
the effect of online travel agency towards the performance of website hotel. The results obtained showed that all the questions and
hypothesis of this study was answered and accepted respectively. The five correlations showed significant relationships between website
functionality, quality, usability, trust also online travel agency. Website quality had the greatest correlation followed by website usability
and the last factor is online travel agency. Besides that, all the hypothesis showed significant results and are proven to be accepted with
the objectives. Hence, this study is considered to be in line with the proposed idea and models that there are external factors affecting
consumer online hotel booking intention like online travel agency (Agoda, booking.com).
According to the results of the Pearson's Correlation analysis conducted with SPSS, both independent variables, namely website
functionality, quality, usability, trust, and online travel agency, have a moderate and positive significant link with the performance of
the hotel website. This means that these independent variables will have a moderate impact on the performance of the hotel website in
terms of customer reservations. This finding backs up the research methodology and confirms the model variables' directional
connections hypothesis. These findings show that all of the hypotheses were accepted. It is recommended that each hotel's corporate
department update their website every few months with helpful and relevant material in order to keep clients up to date on the newest
information, promotions, or hotel events via the website. The quality of a hotel's website makes it easier for customers to find important
information, which influences customer purchase intent and increases satisfaction. Customer satisfaction with the hotel's website is one
of the most important factors that influences their decision to buy and decreases their concern about the service. The advice is
straightforward, yet it may be overlooked by businesses that are unconcerned with their website's appearance. As a result, hotels must
adopt proactive tactics to maintain and improve the quality of their websites in order to satisfy online clients.
The results lead to many practical implications for hotel managers, marketers and web designers. To use the website functionality,
quality, usability, customer trust also role of online travel agency, hotel managers should harmonize the website performance with
customers’ preferences. By creating an interactive hotel website, hoteliers can increase volumes of sales, improve the brand images and
raise the overall outcome of their marketing plans. Accordingly, evaluating customer insight of evaluating hotel website performance
towards customer reservation is vigorous for hotel managers.
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PRESENTATION
FINAL YEAR PROJECT
AHIBS UTM SKUDAI
APPLICATION OF SERVPERF MODEL TO EVALUATE CUSTOMER
SATISFACTION IN THE COURIER INDUSTRY: A CASE STUDY ON J&T
EXPRESS MALACCA
1 2
Jamy Ong Swee Ai , Dr Adaviah Binti Mas’od
Azman Hashim International Business School, Universiti Teknologi Malaysia, Johor Bahru
a
b
[email protected] , [email protected]
Abstrak
Kajian ini bertujuan untuk menilai tahap kepuasan pelanggan menggunakan skala SERVPERF oleh perkhidmatan kurier iaitu J&T Express
Kota Shahbandar Melaka. Satu set soal selidik diberikan kepada pelanggan J&T Express Melaka melalui Borang Google untuk mengukur
tahap kepuasan mereka. Data tinjauan dikumpul melalui sampel bola salji di mana pelanggan terpilih mempunyai pengalaman menggunakan
perkhidmatan kurier tersebut semasa pandemik Covid-19. Analisis regresi berganda digunakan untuk menyiasat hubungan antara setiap
pembolehubah dan tahap kepuasan pelanggan bagi mencapai objektif penyelidikan ini. Kajian mendapati hanya dimensi responsif dan
penampilan ketara mempunyai hubungan dengan tahap kepuasan pelanggan di perkhidmatan kurier yang dipilih dalam kajian. Batasan kajian
ini ialah tiada kajian lain yang mengukur tahap kepuasan pelanggan dalam industri perkhidmatan kurier menggunakan skala SERVPERF.
Pengkaji masa depan boleh mencipta semula penyelidikan ini dalam skala yang lebih besar di mana pelbagai perkhidmatan kurier perlu
disertakan untuk mendapatkan data umum tentang kualiti perkhidmatan industri perkhidmatan kurier. Untuk implikasi teori, ini adalah salah
satu projek penyelidikan yang terawal menyiasat tahap kepuasan pelanggan industri kurier menggunakan skala SERVPERF. Untuk implikasi
praktikal, penyelidikan ini akan membantu pengurus cawangan untuk lebih peka dalam menyediakan perkhidmatan yang cekap kepada
pelanggan mereka.
Kata Kunci: SERVPERF, Tahap Kepuasan Pelanggan, Kurier Servis
Abstract
The aim of this research is to evaluate the level of customer satisfaction using SERVPERF scale by a courier service which is J&T Express
Kota Shahbandar Malacca. A set of questionnaires will be given to the customer of J&T Express Malacca through Google Form to measure
the satisfaction level. The survey data were collected via snowballing sample where selected customer who had experienced using the selected courier
service provider during Covid 19 pandemics. A multiple regression analysis is used to identify the links between each independent variable
and customer satisfaction in order to achieve the research objectives. This research found that only responsiveness and tangible dimension
had a relationship with the level of customer satisfaction at the J&T Express Kota Shahbandar Malacca. The limitation of this research is
there no research on measuring customer satisfaction in courier services industry using SERVPERF scale. The future researcher can recreate
this research in a larger scale where various courier services need to be included to get a specific data about the service quality of courier
services industry. For theoretical implication, this is one of the earliest research projects that investigate the customer satisfaction of courier
industry using SERVPERF scale. For practical, this research will assist the manager of the branch in being more aware on providing an
efficient service to their customer.
Keywords: SERVPERF, Customer Satisfaction, Courier Service
■ 1.0 INTRODUCTION
In the era of globalization, competition in the service industry is unavoidable, especially during the Covid 19
pandemics. This heightened competition has forced service providers to compete for consumers' requirements and preferences.
Because a business's primary objective is to provide satisfaction and match consumer demands, the organization need to ensure
that clients receive the best possible service. E-commerce company platforms are exploding in popularity in the digital era.
Online transactions are increasing the popularity of e-commerce platforms among clients. According to the Statistic E-
Commerce Malaysia (2019), Malaysia is expected to experience one of Asia's fastest e-commerce growth rates between 2018
and 2022, at 20%, owing to new government initiatives aimed at increasing consumer spending and attracting young
consumers. While the COVID-19 virus prompted widespread lockdowns, residents remained at home, unable to go shopping
physically. Therefore, in the beginning of the year 2020, the e-commerce platform become the prima donna for customers. We
could see that online sales grew concurrently with the epidemic as well as the parcel deliveries (Hermann Gruenwald, 2020).
In Malaysia, the courier services grow rapidly through these past few years. There are various courier company in Malaysia
such as J&T, Post Laju, Best Express, Ninja Van, DHL, SkyNet Express and other. These companies offer various value and
services to boost their service performance to win the heart of the customers. In the services performed, delivery delay is one
of the main issues for all of the service courier especially during the Covid 19 pandemics which could lead to service failure.
Thus, all of the courier company put effort, money and time to try their best to reach the maximum level of their customer
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satisfaction. Thus, this research intends to evaluate customer satisfaction level using SERVPERF scale at J&T Express Kota
Shahbandar Malacca.
1.1 Background of the Problem
Customer satisfaction is one of the important elements that need to be protected for organizational survival in the
competitive market. An organization need to focus on their customer service quality to ensure the customer are satisfy towards
their services and this will give a huge impact towards the customer loyalty to continue using their services. The researcher is
a customer of J&T Express Kota Shahbandar, Malacca and once came across with a post that expressed dissatisfaction about
the services provided by the branch. At the same time, the researcher noticed that there is a tension on the customer services
staff at J&T Express Kota Shah Bandar, Malacca. The pandemics had caused a rapid growth on the usage of online shopping
and this makes J&T Express Kota Shahbandar, Malacca branch having an overflow warehouse which make the delivery
process slow. Due to Covid 19 pandemic, people are worried on the spreading of Covid 19 as most of the item ordered are
from China where the dangerous virus was issued. With many parcels being placed in the warehouse, there is a risk that the
virus will spread as they did not have enough time to sanitize all of the parcel. To avoid public negative perspectives that could
damage their financial performance, J&T Express Kota Shahbandar, Malacca implemented a strict measure to spray the
disinfectant very thoroughly to ensure customer are not hesitant to use their services in fear of encountering Covid-19.
However, this consumed a large amount of time which led to a delay in the parcel delivery. On another occasion, many
customers posted in social media such as Twitter, Instagram and Facebook as well as online shopping platform to express their
dissatisfaction regarding the frequently late in updating their parcel delivery tracking record. Besides, J&T Express Kota
Shahbandar, Malacca received complaint on their bad customer service where they could not handle a huge number of
complaints daily and customer could not contact the branch when they wanted to ask question about their parcel delivery which
cause dissatisfied to their customer.
1.2 Research Question
This study listed five main research questions:
RQ 1: What is the relationship between tangible dimension (SERVPERF) and customer satisfaction provided by J&T
Express Malacca?
RQ 2: What is the relationship between assurance dimension (SERVPERF) and customer satisfaction provided by J&T
Express Malacca?
RQ 3: What is the relationship between responsiveness dimension (SERVPERF) and customer satisfaction provided by
J&T Express Malacca?
RQ 4: What is the relationship between reliability dimension (SERVPERF) and customer satisfaction provided by J&T
Express Malacca?
RQ 5: What is the relationship between empathy dimension (SERVPERF) and customer satisfaction provided by J&T
Express Malacca?
1.3 Research Objectives
This study listed five main objectives:
1. To explore the relationship between tangible dimension (SERVPERF) and customer satisfaction provided by J&T
Express Malacca.
2. To determine the relationship between assurance dimension (SERVPERF) and customer satisfaction provided by
J&T Express Malacca.
3. To examine the relationship between responsiveness dimension (SERVPERF) and customer satisfaction provided
by J&T Express Malacca.
4. To investigate the relationship between reliability dimension (SERVPERF) and customer satisfaction provided by
J&T Express Malacca.
5. To inspect the relationship between empathy dimension (SERVPERF) and customer satisfaction provided by J&T
Express Malacca.
■ 2.0 LITERATURE REVIEW
2.1 Definition of Service Quality
Till today there’s no agreement on what constitutes quality. Quality is interpreted as satisfying the demand of the
customer. According to Seth et. al. (2005), all services need to focus on fulfilling customer’s demand by removing any non-
standard feature. Parasuraman et. al. (1988) stated that customer’s perception of service quality is based on the assumption of
what the businesses could offer to them and the perception of the company’s performance in offering their services. Zeithaml
(2002) describe service quality as an action of customer conducting a relative inspection on the service provided by the
company. On the other hand, Sureshchandar, Rajendran & Anantharaman (2002) agreed that a company that have a good
service quality will have a better competitive advantage compared to their competitor. SERVQUAL scale is another used to
measure service quality. This scale contains forty-four (44) items to identify customers’ perspective towards the degree of
service quality (Alrawashdeh, 2014). Other than SERVQUAL scales, there is a scale called “SERVPERF” which was
suggested by Cronin and Taylor (1992). SERVPERF scale comprising twenty-two (22) items which is established from
SERVQUAL scale proposed by Parasuraman (1985) and Parasuraman et al (1988).
2.2 SERVPERF Scale
Service Performance (SERVPERF) was suggested by Cronin and Taylor in 1992 to substitute SERVQUAL model.
Cronin and Taylor stated that SERVPERF is one step ahead than SERVQUAL in describing variance in service quality which
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included in all three dimension which are the comprehensive of service quality, buying intention and satisfaction. To justify
this argument, Cronin and Taylor (1992) carry out the same research conducted by Parasuraman et al. (1985) on SERVQUAL
scale research. The research gathered data from private interviews from a medium sized town in the South Eastern United
States of America and 660 of questionnaire was collected from four industry (Banking, Maintenance, Financial, and Long-
Distance Mobile Services). 22 items of performance scales were utilized in that research where it was taken from the original
SERVQUAL research. The result clearly shows the superiority of SERVPERF scales in defining the five-service quality
dimension and customer satisfaction level compared to the SERVQUAL scale. In addition, Cronin and Taylor’s findings was
supported by numerous researchers from the service management and marketing background. Due to limited citation of
empirical research on level of customer satisfaction in the hospitality industry corresponding to the validity and reliability,
Yuksel and Rimmington (1998) conducted research to investigate the correlative validity variance of the customer satisfaction
assessment. The research collected 115 completed questionnaires from 460 restaurants customer which comprises of four
different group of questionnaires that will be evaluated with four different technique of customer satisfaction. From the analysis
of the research indicated that SERVPERF scale had a greater convergent validity and predictive strength in calculating the
level of customer satisfaction compared to other scales. Hudson et al. (2004) recommended SERVPERF scale an appropriate
scale for researcher that seek for a time and cost-efficient way to conduct research.
2.2.1 Five Dimension of SERVPERF Scale
The SERVPERF scale's five dimensions can be categorised into five as shown below: (Phan and Nham, 2015; Gronroos,
2007):
• Tangibility: This dimension refers to visible proof of the service.
• Assurance: This dimension refers to staff' knowledge and how nice they are when dealing with consumers.
• Responsiveness: This dimension refers to the staff' readiness to assist customer’s inquiry and deliver prompt service.
• Reliability: This dimension refers to the company's capacity to provide the agreed service consistently and precisely.
• Empathy: This dimension indicates the firm's caring attention to its client’s problem.
2.2.1.1 Tangible Dimension
Tangible dimension is part of service quality that plays a significant impact in determining customer satisfaction as
an increase in tangibility will give a good impression to customer which led to higher satisfaction. According to El Saghier &
Nathan (2013), tangible can be defined as the accessibility of physical facilities, tools or other technology in the company. The
element that represents tangible elements are the recent equipment features, updated technology or tools, neat attire of the
employee and the appealing environment. Besides, Barber and Scarcelli (2010) added that tangible dimension comprises of
the physical environment performance where it directly related to the employee, design of the physical facilities, physical
materials and other factors that being used to serve the customer. Anantharanthan Parasuraman et al. (1998) stated that tangible
dimension appears to have a weak link with customer satisfaction. However, research done by Noble, Sinha, & Kumar (2002)
argues that tangible dimension had a significant effect on customer satisfaction in the China’s telecommunication industry.
The research was supported by Yavas et al. (2004) research where it found that an increase in tangibility will lead to an increase
of customer satisfaction.
H1: To explore the relationship between tangible dimension (SERVPERF) and customer satisfaction provided by J&T
Express Malacca.
2.2.1.2 Assurance Dimension
Assurance is defined as the ability to deliver services with confidence and trust (Ma, Madu, and Madhu, 2002). In
the courier industry, the company need to ensure the employee are well trained and know their responsibility and duties.
According to Goh, Kow, Lee, Loh, and Sam (2013), a well-trained employee will assure each customer experienced a good
empathetic and prompt response to their problem. Phiri and Mcwabe (2013) believed that the critical dimension of service
quality is assurance. They stated that customer like to engage with company that they trusted and this is proven when they feel
satisfied with the services they received previously. According to Khan & Fasih (2014) and Blery, et al. (2009) believed that
the knowledge and skill gained during their training need to be executed accordingly during the service delivery which could
contribute to assurance dimension. Assurance dimension comprises kindness, validity and security and Shahin and Chan
(2006) added that it is important for employee to generate trust and certainty through their learning and friendliness while
working in services industry. Customers must feel confident with the systems provided while being satisfied with the services
provided by the company that offers the services.
H2: To determine the relationship between assurance dimension (SERVPERF) and customer satisfaction provided by J&T
Express Malacca.
2.2.1.3 Responsiveness Dimension
Responsiveness is defined as the readiness and capability of a company to meet and adjust the customer’s needs and
preference. As a result, it is defined by the readiness or position of representatives to provide assistance and offers
administrative convenience (El Saghier and Nathan, 2013). Furthermore, responsiveness dimension consists of how the
company recognise the customer’s demand and needs, flexible working hours, individual attention from employees, sensitivity
toward difficulties faced by customer, and customers' well-being in their trade. Gulc (2017) stated that responsiveness is the
capability to react quickly and give response to customer’s inquiry or issue with the company. According to Blery et. al. (2009),
responsiveness is defined as the process of the company responding swiftly to handle customer’s problem in a
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favourable manner within a certain time frame. However, the courier delivery services can improve their responsiveness
through advancements in information technology for example emails, websites and customer support interfaces (Kaura, et al.,
2012). Previous studies done by Al-Weshah, Alnsour, Al-Hyari, Alhammad, and Algharabat (2013) proved that responsiveness
had the highest correlation with customer satisfaction.
H3: To examine the relationship between responsiveness dimension (SERVPERF) and customer satisfaction provided by
J&T Express Malacca.
2.2.1.4 Reliability Dimension
Reliability is defined as a process of a business’s carrying out their operation with minimal mistakes. Choy, Ma & Koo
(2013) stated that it is a company's performance consistency and dependability. Reliability relies on how well the business
solve the customer’s administrations’ issues, doing administrations activities correctly on first try and maintaining a mistake-
free record. Besides, El Saghier & Nathan (2013) stated that reliability dimension plays an important role in service
management as it is link to dependability. At the same time, a business need to focus on their speed of exchange. This is
because this element is a critical element in influencing customer satisfaction (Janahi & Al Mubarak, 2017). This statement
was supported by Shahin & Chan (2006) research where they indicate that reliability is one of the important dimensions in
service quality and increases the productivity of a company which will be a favourable impact on the customer satisfaction. In
the context of courier services, reliability is to determine whether the parcel arrived at the correct location and destination.
Hennayake (2017) stated that reliability refers to the company’s capability in delivering the promised services accurately and
reliably.
H4: To investigate the relationship between reliability dimension (SERVPERF) and customer satisfaction provided by
J&T Express Malacca.
2.2.1.5 Empathy Dimension
Empathy dimension comprises the elements of supporting the customer by paying close attention to them on
individual basis (Blery et al., 2009). This also includes listening to the customer’s issues and responding to solve their concerns
and needs. As a result, this dimension is about both parties looking into the other’s point of view to have a business connection.
According to Khan and Fasih (2014), empathy dimension is about the capability of a services company addressing and solving
the customer’s problems and needs effectively. It also found the positive relationship of empathy dimension and customer
satisfaction. In Sin et al. (2002) research on personal selling literature clearly shows that the empathy dimension plays a critical
factor in increasing the sales of a salesperson in their marketing strategies. This dimension is utilized as part of service quality
model in the service marketing literature as it is the independent variables that describe the relationship between the buyer and
seller. S. Alnsour et al. (2014) mentioned that customer expressed their satisfaction with the service provider when they feel
appreciated with the concern given by the service provider as it fulfils their needs and wants. In Yavas, Benkenstien, and
Stuhldreier (2004) research proven that empathy dimension had an influence in consumer commitment towards the banking
industry and word of mouth. With higher empathy services, this increases the satisfaction level with the banking industry
which led to customer loyalty towards the specific banking institution and they will also suggest it their close families or
friends.
H5: To inspect the relationship between empathy dimension (SERVPERF) and customer satisfaction provided by J&T
Express Malacca.
2.3 Customer Satisfaction
2.3.1 Definition of Customer Satisfaction
Customer satisfaction is critical for any businesses in the twenty-first century. Satisfaction can be defined in various
ways, based on the customer's pre-service demands. It encompasses emotions such as fulfilment, contentment, pleasure,
delight, relief, and ambivalence. The definition of satisfaction is the level of the customer expectation towards the product
level (Kotler, 2013). While it is frequently assessed as a static quantity, it is dynamic and changes over time due to a variety
of factor. Service performance is one of the variables that contribute to customer satisfaction. According to Gaspersz (2005),
customer satisfaction is a state in which consumers may fulfil their requirements, wants, and expectations through the items
they consume. On the other hand, customer will be dissatisfied when the services received did not meet their expectation
(Hosany & Gilbert 2010). According to T. Ahn, S. Ryu and I. Han (2004), customer that are happy with the services received
will repurchase to the same brand if it is reached their expectations. At the same time, the variables of the customer satisfaction
could be an indicator for the business to make an improvement in the future. According to Yi (1991) and Anderson and Sulivan
(1993) stated that the rise in customer satisfaction level will lead to customer loyalty. Thus, many industries leader are aware
to be in a higher ranking if they are customer service orientated. In the courier services industry, all of the business are required
to evaluate their quality of services in order to attract and retain their customer. Brandy and Robertson (2001) mentioned that
customer satisfaction could be defined as the customer’s happiness in receiving services based on the performance of the
company.
2.3.2 Service Quality and Customer Satisfaction
Based on the previous research done by many researchers on the influence of service quality, we can easily notice
the pattern in the field. According to Cronin and Taylor (1992), it was clear that from the beginning of the marketing and
business literature the fundamental motivation for investigating service quality was to determine customer satisfaction of a
service provider. The first service quality measurement was disconfirmation model, constructed by Oliver in the year of 1980
which this model requested the customer’s perceptions of happiness with the services encountered. The most popular
instruments used to measure customer satisfaction was SERVQUAL model by Parasuraman et al. (1985) where this model
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score the degree of satisfaction with a variety of service quality dimension. Crompton et al. (1991) expressed that there was a
lot of ambiguity in the satisfaction and service quality literature as researcher supposed to evaluate satisfaction instead of
evaluating service quality. Thus, researcher begin investigating the relationship of service quality towards customer satisfaction
and both entities were separated into dependent and independent variable of a research (Tian-Cole, Crompton, & Wilson,
2002).
2.4 Theoretical Framework
Figure 1: Research Framework (Cronin & Taylor, 1992)
■ 3.0 METHODOLOGY
3.1 Research Design
According to RL Labaree (2019) a research design is a set of techniques and formula to collect and analyse the
variables in the research problem. This research implements a quantitative research design. Quantitative research is a structured,
objective, and systematic process that employs numerical data to elicit information about any subject (Burns and Grove, 2005).
According to other researchers, this research design is a method for explaining phenomena through the collection of numerical
data and their analysis using mathematically based methods (Aliaga and Gunderson, 2000).
3.2 Population and Sample
The population of this research is individual who had an experienced using J&T Express Kota Shahbandar Malacca. The
sample size was determined by utilizing Tabachnick and Fidell (2007) minimum sample size calculation. The calculation below
shows the calculation of the minimum sample size of this research.
Independent Variables = (Independent Variables 1 items x 5) + (Independent Variables 2 items x 5) + (Independent
Variables 3 items x 5) + (Independent Variables 4 items x 5) + (Independent Variables 5 items x 5)
= (4 x 5) + (5 x 5) + (4 x 5) + (4 x 5) + (5 x 5)
= 20 + 25 + 20 + 20 + 25
= 110
Dependent Variable = (Dependent Variable x 5)
= (5 x 5)
= 25
Minimum Number of Sample = 110 + 25
= 135 respondents
3.3 Data Collection
This research was conducted through the usage of a Google form to distribute the questionnaire. Due to the Covid
19 pandemics, individuals are less likely to engage in personal contact as the government implement Movement Restricted
Order (MCO). As a result, the questionnaire was not distributed manually. The online data collection will be accessible for
researcher to reach out to the respondent and obtain the information easily. Social media platform such as Facebook, WhatsApp
and Telegram are utilized to distribute the questionnaire of this research. A pilot test with 30 sample were conducted to check
the reliability of the measurement items.
3.4 Research Instrument
The research instrument employed in this research is a close ended questionnaire where it was created with the
trichotomous, multiple choices and Likert scale. Likert scale was used in the questionnaire to measure the strength of each
items measured. According to Vagias and Wade (2006), a five-point Likert scale can be implemented to measure the strength
of each item. The five levels of agreement are 5: Strongly Agree, 4: Agree, 3: Neutral, 2: Disagree, 1: Strong Disagree. The
questionnaire was split up into three sections where Section A is asking about demographic profile of the respondents, Section
B is discussing the impact of the five dimension of service quality and Section C is measuring customer satisfaction level.
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3.4. Data Analysis
Table 3.1: Methods Used in this Research
■ 4.0 DATA ANALYSIS PLAN
4.1 Response Rate
The sample of this research was decided by implementing Tabachnick and Fidell calculation (2007) where the
minimum sample of respondents for this research is 135 respondents as stated in Chapter 3. According to Research Info (1998),
the good survey response for an online survey is above 20%. For customer satisfaction research, the response rates in the
survey would be the range of 10% to 30% range. The response rate in this survey is 20% where there are 180 respondents
answered the questionnaire. Hence, the response rate in this research is considered acceptable. An outlier analysis was utilized
to spot and eliminate the extreme value from the dataset (Grubbs, 1969). The result shown that one set of questionnaires need
to be eliminated from the dataset. Table 4.1 as below shows the research’s sample size, data collected that can be used in this
research and the response rate of this research.
Table 4.1 Response Rate of the research
4.2 Profile of Respondents
The table below shows the demographic profiles of the respondents gathered of this research. This research consisted
of 110 female respondents (61.5%) while the remaining 69 respondents are male respondent (38.5%). Most of the respondent
aged between 21 to 25 years old with 50.8% (91) followed by the other age group. The lowest age group that responded to this
survey is respondents that aged above 30 years old with only 15 respondents (8.4%). 80 respondents (44.7%) of the respondents
had a degree qualification followed by diploma qualification with 29.6% (53), SPM qualification with 14% (25), Master
qualification with 10.1% (18) and PHD qualification with 1.7% (3). Chinese respondents had the highest involvement with
49.2% (88) followed by Malay respondents with 32.4 (88), Indian respondents with 17.9% (22) and other ethnicity which is
Portuguese with 1 respondent (0.6%). The highest 78 respondents (43.6%) used J&T Express Malacca services at least few
times a year, 51 respondents (28.5%) at least use the services once a year, 31 respondents (17.3%) stated they uses the services
as monthly basis, 17 respondents (9.5%) use the services on weekly basis and 2 respondents (1.1%) uses the services daily.
Next, the most popular services chose by the respondents is standard delivery services with 52.5% (94). International Shipping
Services is the second type of services often used by the respondents with 35 respondents (19.6%) followed by multi-pieces
shipment (MPS) with 25 respondents (14%), cargo shipping service with 12 respondents (6.7%), cash on delivery services
with 7 respondents (3.9%) and heavy goods transportation services with 6 respondents (3.4%).
Demographic Variables Frequency (F) Percentage (%)
Male 69 38.5
Gender
Female 110 61.5
20 years old or below 28 15.6
Age
21 to 25 years old 91 50.8
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26 to 30 years old 45 25.1
Above 30 years old 15 8.4
SPM or equivalent 25 14
Diploma 53 29.6
Education Degree 80 44.7
Master/MBA 18 10.1
PhD/DBA 3 1.7
Malay 58 32.4
Chinese 88 49.2
Ethnicity
Indian 32 17.9
Others 1 0.6
Daily basis 2 1.1
Weekly basis 17 9.5
How often do you use the J&T Monthly basis 31 17.3
Express Malacca services?
Few times a year 78 43.6
Once a year 51 28.5
Standard Delivery Services 94 52.5
Multi-Pieces Shipment 25 14
(MPS)
Cargo Shipping Service 12 6.7
Which type of shipping do you
use most often?
International Shipping 35 19.6
Services
Cash On Delivery Services 7 3.9
Heavy goods transportation 6 3.4
service
Table 4.2 Profile of Respondents
4.3 Descriptive Analysis
A total of 179 questionnaires are gathered and inserted into IBM SPSS system to perform the descriptive analysis. Table below
shows the interpreted data using table and chart format. The frequency and percentage group of respondents based on frequency
are shown in the descriptive statistics of this research. In all variables, the number of responses was valid.
N Minimum Maximum Mean Std. Deviation
Statistic Statistic Statistic Statistic Statistic
Tangible 179 2.33 5.00 3.4879 .63429
Assurance 179 2.25 4.75 3.5405 .69869
Responsiveness 179 2.00 4.67 3.4115 .61512
Reliability 179 1.75 4.75 3.4036 .75336
Empathy 179 1.75 4.75 3.3855 .74870
CS 179 2.40 4.40 3.3810 .62051
Valid N (listwise) 179
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Table 4.3 Statistical Analysis of IV and DV
Based on Table 4.3, respondents have positive attitudes towards assurance dimension where it has the highest mean with
3.5405, followed by tangible dimension with the mean of 3.4879, responsiveness dimension with the mean of 3.4115, reliability
dimension with the mean of 3.4036 and lastly empathy dimension with the mean of 3.3855. The mean value for customer
satisfaction is 3.3810.
4.4 Normality Test
N Minimum Maximum Mean Std. Deviation Skewness Kurtosis
Statistic Statistic Statistic Statistic Statistic Statistic Std. Error Statistic Std. Error
Tangible 179 2.33 5.00 3.4879 .63429 .101 .182 -.695 .361
Assurance 179 2.25 4.75 3.5405 .69869 -.162 .182 -.683 .361
Responsiveness 179 2.00 4.67 3.4115 .61512 .523 .182 -.151 .361
Reliability 179 1.75 4.75 3.4036 .75336 .238 .182 -.878 .361
Empathy 179 1.75 4.75 3.3855 .74870 .259 .182 -.832 .361
CS 179 2.40 4.40 3.3810 .62051 .219 .182 -.725 .361
Valid N (listwise) 179
Table 4.4 Normality Analysis
George and Mallery (2010) stated that the values between ± 2 are acceptable for asymmetry and kurtosis to
demonstrate the normal univariate distribution. However, Hair et al. (2010) claimed that if the skewness is between the range
of ± 2 and the kurtosis is between the range of ±7, the data are considered to be normal. The rule of thumb stated that the value
that are greater or lesser than 196 in small samples are consider to be sufficient to prove the normality of the data. The table
above shows the results indicated that the skewness is between -0.162 to 0.523 and the kurtosis value are between -0.878 to -
0.151. This can be concluded that the data are normally distributed.
4.5 Model Measurement
The model measurement assessment begins with the testing of the indicator loadings. The loadings for all items need
to exceed the value of 0.5 to show all constructs describing the variance and reliability for more than 50% is acceptable. The
convergent validity based on average extracted (AVE) must be higher than 0.5 and the discriminant validity will be conducted
to eliminate offending items. Next, composite reliability value need to be 0.7 or higher to show the constructs are reliable (Hair
et al., 2010).
4.5.1 Construct Validity
Hair et al. (2010) stated that Smart-PLS is the most favourable approach in analysing formative construct of a
structural model. This model assesses on the convergent and discriminant validity. At the same time Hair et al. (2010)’s
research stated that the assessment of convergent validity (CV) is from the AVE of each construct in a dataset. The average
variance extracted (AVE) from a research need to be larger than the value of 0.5 to show the overall total variance obtain by
the indicator relative to the measurement error (Barclay et al.,1995). Next, the composite reliability value need to be higher
than the value of 0.7. Based on Table 4.10 shown below, the result clearly shows that the loadings in each item are more than
the value of 0.5 and the AVE are more than 0.5 while the CR are more than 0.7 respectively. Hence, all CV in this research is
acceptable.
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Table 4.5: Convergent Validity Assessment
4.5.2 Discriminant Validity (Fornell- Larcker Criterion Analysis)
The average variance extracted is represented by the bold number diagonally as shown in the table below and the
squared correlations are represented by the other entries. If the bolded value is greater than all values below it, as well as the
corresponding row and column, this proves that the cross loadings is higher than the other constructs. The result shown below
indicated that all bold value is higher in each of their own row and column. Thus, the condition and discriminability are valid.
Customer
Assurance Empathy Reliability Responsiveness Tangible
Satisfaction
Assurance 0.848
Customer
Satisfaction 0.498 0.798
Empathy 0.83 0.577 0.845
Reliability 0.706 0.646 0.815 0.851
Responsiveness 0.565 0.749 0.653 0.72 0.824
Tangible 0.66 0.74 0.756 0.824 0.771 0.835
Table 4.6 Discriminant Validity Assessment
4.6 Reliability Test
This analysis was conducted in this research to make sure the inner consistency of the constructs. Cronbach’s Alpha is being
utilized to measure the items of this research to avoid any bias result gathered from the respondents. According to Pallant
(2007), an acceptable value for this analysis is greater than 0.6 but a preferable value for research would be 0.6. Table 4.7
shows the alpha values based on the findings of Keith (2016).
Table 4.7 Keith (2016)
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Table 4.8 Result of Reliability Test
Table above shows the outcome of reliability analysis for this research. All values are in within the reliable range. Thus, all
variables are reliable and acceptable in this research.
4.7 Inferential Analysis
4.7.1 Multicollinearity Analysis
Collinearity Statistics
Construct
VIF Tolerance
Tangible 4.095 0.244
Assurance 3.242 0.308
Responsiveness 2.588 0.386
Reliability 4.426 0.226
Empathy 5.062 0.198
Table 4.9 Multicollinearity Analysis
The variance inflation value should be smaller than 10 and the tolerance value need to be greater than 0.1 (Hair et al.,1998).
As stated in Table 4.31, the tolerance value is more than 0.1 and the VIF value are smaller than 10. Thus, it can be concluded
that no multicollinearity problem occurred among all independent variables used in this research.
2
R 2 R Adjusted
Customer 0.622 0.611
Satisfaction
Table 4.10 R Square and R Square Adjusted
2
Table above shows the R value is 0.622 which specify that approximately 62.2% of the variant in dependent variable which
is customer satisfaction is describe by the independent variable which are tangible, assurance, responsiveness, reliability and
2
empathy. The R in this research is considered moderate but still acceptable to conduct the research (Joseph et al., 2018).
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4.7.2 Multiple Regression Analysis
Standardized
Unstandardized Coefficients Coefficients
Hypothesis B Std. Error Beta t Sig. Outcome
(Constant) .521 .185 2.824 .005
H1 Tangible .412 .093 .421 4.449 .000 Accepted
H2 Assurance -.004 .075 -.005 -.055 .956 Rejected
H3 Responsiveness .438 .076 .434 5.766 .000 Accepted
H4 Reliability .022 .081 .027 .272 .786 Rejected
H5 Empathy -.038 .087 -.046 -.441 .660 Rejected
Table 4.19: Hypothesis Testing
The result above shows the relationship between the five dimension which are tangible, assurance, responsiveness,
reliability and empathy and customer satisfaction of J&T Express Kota Shahbandar Malacca customer. Out of the five-
dimension, tangibility and responsiveness had a substantial effect on the customer satisfaction of J&T Express Kota
Shahbandar Malacca customer. The table above concluded that tangibility dimension (β= 0.412, p < 0.05), assurance dimension
(β= -0.004, p > 0.05), responsiveness dimension (β= 0.438, p < 0.05), reliability dimension (β= 0.022, p > 0.05) and empathy
dimension (β= -0.038, p > 0.05). Hence, only H1 an H3are accepted and H2, H4 and H5 are not accepted.
Table below shows the rank of the independent variables with their unstandardized coefficient (β).
In the Multiple Regression Analysis, the equation was formed as shown below where this equation explored the relationship
between dependant variables and independent variables.
Y = C + β1D1 + β2D2 + β3D3 + β4D4 + β5D5
which,
Y = Customer satisfaction in the courier industry
C = Constant value
β = Unstandardized coefficient
D = Dimensions of service quality (Tangible, Assurance, Responsiveness, Reliability and Empathy).
From result, the amount obtained was placed into the equation:
Customer Satisfaction = 0.521 + 0.412 Tangible - 0.004 Assurance + 0.438 Responsiveness - 0.022 Reliability -0.038
Empathy
Multiple Regression Equation Interpretation:
The interpretation of the regression equation obtained is as follows. First, the constant is 0.521 indicates that without
Tangibles (D1), Assurance (D2) Responsiveness (D3), Reliability (D4), and Empathy (D5), customers remain satisfied with
the quality of service at J&T Express Kota Shahbandar Malacca. Second, the tangibles regression coefficient (D1) has a
positive sign that is 0.412, which means that if there is an increase related to tangibles given to the customer, then the customer
satisfaction at J&T Express Kota Shahbandar Malacca will also increase. Third, the regression coefficient of assurance (D2)
is -0.004 with a negative sign, which indicate that if there is an increase related to assurance given to the customer, then the
customer satisfaction in J&T Express Kota Shahbandar Malacca will also decrease. Fourth, the regression coefficient of
Responsiveness (D3) is 0.438 with a positive sign, which means that if there is an increase associated with Responsiveness
given to the customer, then the customer satisfaction at J&T Express Kota Shahbandar Malacca will also increase. Fifth, the
regression coefficient of reliability (D4) is 0.022 and is marked positive, which means that if there is an increase related to
assurance given to the customer, then the customer satisfaction at J&T Express Kota Shahbandar Malacca will also increase.
Sixth, the regression coefficient of empathy (D5) is -0.038 with a negative sign, which means that if there is an increase related
to Assurance given to the customer, then the customer satisfaction in J&T Express Kota Shahbandar Malacca will also
decrease.
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■ 5.0 DISCUSSION AND CONCLUSION
5.1 Discussion of the Results
The discussed results and findings will be used to test the hypothesis that there is a significant relationship between the
variables tangible dimension, assurance dimension, responsiveness dimension, responsiveness dimension, reliability
dimension, and empathy dimension when it comes to customer satisfaction.
H1: To explore the relationship between tangible dimension (SERVPERF) and customer satisfaction provided by J&T
Express Malacca.
In Table 4.19 shows the result of hypothesis testing research where tangible dimension on customer satisfaction are
supported where the beta value and significant values are (β= 0.412, p < 0.05). Therefore, tangible dimension is positively
significant towards customer satisfaction of J&T Express Kota Shahbandar Malacca. This indicates that if tangibles dimension,
for example, physical facilities, appearance of the employee or quality of the courier services, then the customer satisfaction
at J&T Express Kota Shahbandar Malacca will increases as well. Hence, the hypothesis is accepted. This result was supported
by research done by Joefel T (2021) where he stated that tangibility dimension of courier services has a significant relationship
on customer satisfaction. This means that a good tangible dimension provided by the courier services will make the customer
feel satisfied with their services. At the same time, in Le, Nguyen, & Truong (2019) also emphasized that tangible dimension
plays a crucial role in courier services industry. However, there is a few research that claimed tangible dimension do not have
any relationship with customer satisfaction which are research by with Valaei, Rezaei, & Shahijan's (2016) and research by
Ngaliman, Eka, & Suharto (2019).
H2: To determine the relationship between assurance dimension (SERVPERF) and customer satisfaction provided by J&T
Express Malacca.
In Table 4.19 shows the result of hypothesis testing research where assurance dimension on customer satisfaction are rejected
where the beta value and significant values are (β= -0.004, p > 0.05). Therefore, assurance dimension is not significant towards
customer satisfaction of J&T Express Kota Shahbandar Malacca. This indicates that assurance dimension was insignificant
contributor to customer satisfaction. Thus, hypothesis is rejected. This result was supported by Hartini et al. (2018) research
where it stated that there is no relationship between assurance dimension and customer satisfaction in courier services industry.
In research on courier services industry done by Le, Nguyen, & Truong (2019) proven that assurance certainly plays a
significant role in customer satisfaction along with tangible dimension. This statement was supported with the research done
by Quddus & Hudrasyah (2014) where it concluded that assurance influences customer satisfaction.
H3: To examine the relationship between responsiveness dimension (SERVPERF) and customer satisfaction provided by
J&T Express Malacca.
In Table 4.19 shows the result of hypothesis testing research where responsiveness dimension on customer satisfaction are
supported where the beta value and significant values are (β= 0.438, p < 0.05). Therefore, responsiveness dimension is
positively significant towards customer satisfaction of J&T Express Kota Shahbandar Malacca. This indicates that if
responsiveness dimension, for example, response rate towards customer inquiry or solving customer’s problems, then the
customer satisfaction at J&T Express Kota Shahbandar Malacca will increases as well. In this research proves that there is a
strong relationship between responsiveness dimension with customer satisfaction and this statement is supported by the
research conducted by S. Alnsour et al., 2014) and (Naik et al., 2010) as they also stated that responsiveness dimension had
the greatest correlation with customer satisfaction. Research done by Le, Nguyen, & Truong (2019) agreed that responsiveness
dimension is important in courier services industry as it had direct effect on customer satisfaction. This statement was supported
by research done by Ngaliman, Eka, & Suharto (2019) and Quddus & Hudrasyah (2014).
H4: To investigate the relationship between reliability dimension (SERVPERF) and customer satisfaction provided by
J&T Express Malacca.
In Table 4.19 shows the result of hypothesis testing research where reliability dimension on customer satisfaction is rejected
where the beta value and significant values are (β= 0.022, p > 0.05). Therefore, reliability dimension is not significant towards
customer satisfaction of J&T Express Kota Shahbandar Malacca. This indicates that reliability dimension was insignificant
contributor to customer satisfaction. Thus, hypothesis is rejected. This result was contradicted by the research by Le, Nguyen,
& Truong (2019) and Ngaliman, Eka, & Suharto (2019) where both researches stated that reliability dimension had a direct
effect on customer satisfaction in the courier services industry. In this study, consumers might have negative perception on the
reliability of J&T Express Kota Shahbandar Malacca as the courier services did not deliver their services as promised to their
customer. Customer may feel the courier services are not dependable in delivering their parcel or solving their inquiry or
problems. Hence, J&T Express Malacca need to improve their delay of delivery of parcel or document to build a trust and
reliable image on customer’s minds.
H5: To inspect the relationship between empathy dimension (SERVPERF) and customer satisfaction provided by J&T
Express Malacca.
In Table 4.19 shows the result of hypothesis testing research where empathy dimension on customer satisfaction is rejected
where the beta value and significant values are (β= -0.038, p > 0.05). Therefore, empathy dimension is not significant towards
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customer satisfaction of J&T Express Kota Shahbandar Malacca. This indicates that empathy dimension was insignificant
contributor to customer satisfaction. Thus, hypothesis is rejected. This result was supported by Hartini et al. (2018) research
where it stated that there is no relationship between empathy dimension and customer satisfaction in courier services industry.
However, this result was contradicted with S. Alnsour et al. (2014) and Sureshchandar et al. (2002) research where both
researches found empathy dimension had a relationship with customer satisfaction.
5.2 Managerial Implication
The findings and outcomes of this research suggested a number of management implications that could be beneficial
to J&T Express Kota Shahbandar Malacca as well as the other courier services. Firstly, the employee of J&T Express Kota
Shahbandar Malacca should always assist their customers even if they are busy (Goh et al., 2013). As mentioned in the problem
of statement of this research where the employee of J&T Express Kota Shahbandar Malacca received complaint on their bad
customer service where they could not handle a huge number of complaints daily and customer could not contact the branch
when they wanted to ask question about their parcel delivery which cause dissatisfied to their customer. J&T should provide
an alternative method in reaching them by creating a personal social media account for customer to reach out to the branch
directly where they could get a fast response regarding the inquiry or getting information about their parcel delivery. Secondly,
Next, J&T Express Kota Shahbandar Malacca could adopt the latest technology where a self-collection station where it will
be operated for 24/7 for customer to drop off their letters and packages. This will increase other service quality dimension such
as responsiveness as customer could deliver their parcel in a short time of period and reliability dimension J&T Express
Malacca could provide a service as promised to their customer. As J&T Express Malacca has an up-to-date equipment this
would improve the tangible dimension where customer could save their time to pass their parcel without physical interaction
and it is a simple process for customer to deliver their parcel through the self-collection station.
5.3 Limitation and Recommendation of the Research
There are some limitations and recommendations should be addressed in order to improve future research. Firstly, there is
limitation of research of courier services industry measuring customer satisfaction using SERVPERF scale. Future research
need to recreate this research in a larger scale where various courier services need to be included to get a generalize data about
the service quality of courier services industry. Secondly, this research only had 180 respondents. A bigger popular for future
research are required to improve the accuracy of the result. Thirdly, the questionnaire was distributed using Google Form due
to the Covid-19 pandemics. For future research, it is highly recommended to collect data directly from respondents as this will
help the respondent to understand the purpose of the research. Lastly, the questionnaire prepared for this research is written in
English only. The future researcher should prepare the questionnaire in Malay and Chinese language to ensure the respondent
fully understand the meaning of the research and it will help the future researcher to save their time from explaining the
questionnaire to the respondent that have a poor command in English language.
5.4 Conclusion
The current research investigated about the relationship between service quality dimension (tangible dimension, assurance
dimension, responsiveness dimension, reliability dimension and empathy dimension) towards customer satisfaction of J&T
Express Kota Shahbandar Malacca. Five research objectives and five hypotheses were constructed to develop the conceptual
research framework. A total of 180 data were collected and analysed using IBM SOSS and SmartPLS to obtain the analysis of
the result. The main findings stated that responsiveness dimension and tangible dimension are positively significant towards
customer satisfaction of J&T Express Kota Shahbandar Malacca. However, assurance dimension, reliability dimension and
empathy dimension were not significantly towards customer satisfaction of J&T Express Kota Shahbandar Malacca. The
chosen courier services need to pay more attention towards the three dimensions for further improvement in the future. Next,
a customer satisfaction in courier industry using SERVPERF scale should be conducted by the future researcher as there is
limited research on courier services industry using SERVPERF scale. To conclude, the research has met two out of five
hypothesis and response to the research questions and objectives. This chapter also recommend the future research to conduct
more research on customer satisfaction in courier services and reduces the limitations of the research.
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FACTORS INFLUENCING CUSTOMER LOYALTY OF MOBILE ELECTRONICS
STORES: CASE STUDY OF ONLY U MOBILE ENTERPRISE
Ker Jie Ming, Zuraidah Binti Sulaiman
Sekolah Perniagaan Antarabangsa Azman Hashim, Universiti Teknologi Malaysia, Johor Bahru
[email protected] , [email protected]
Abstract
Nowadays, mobile electronics store has experienced a tremendous expansion due to the rapid changing technology in recent year. The expansion
of mobile electronics stores will bring the intense competition in today’s business and it is a basic requirement for companies to build and maintain
good relationships with customers in order to achieve customer loyalty and prevent customer from switching to other companies. It is one of the
reason that customer relationship marketing becomes more crucial nowadays. The purpose of this research is to investigate the factors influencing
customer loyalty of mobile electronics stores including store environment, service quality and price. This study adopted the quantitative research
approach through google form questionnaire to gather data from the respondents. Respondents were selected from individuals who have a
purchases experience on Only U Mobile Enterprise. The target population for this study is a 135 respondents. The sampling technique in this study
adopts the non-probability sampling technique which refers to purposive sampling. All the collected data will analyze using SPSS software. This
findings found that price is the most important factor and have positive significant influence customer loyalty. Contrary to the store environment
and service quality that did not significant influence customer loyalty. This research gives useful insight to the Only U Mobile Enterprise to adopt
the proposed intervention to increase customer loyalty.
Kata kunci: Store environment, Service quality, Price, Customer loyalty
Abstrak
Pada masa kini, kedai elektronik mudah alih telah mengalami perkembangan yang luar biasa berikutan perubahan pesat teknologi pada tahun
kebelakangan ini. Pembesaran kedai elektronik mudah alih akan membawa persaingan sengit dalam perniagaan hari ini dan ia merupakan
keperluan asas bagi syarikat untuk membina dan mengekalkan hubungan yang kukuh dengan pelanggan untuk mencapai kesetiaan mereka
terhadap peralihan pelanggan kepada syarikat lain. Itulah sebabnya pemasaran perhubungan pelanggan menjadi lebih penting pada masa kini.
Matlamat kajian ini adalah untuk menyiasat faktor-faktor yang mempengaruhi kesetiaan pelanggan kedai elektronik mudah alih termasuk
persekitaran kedai, kualiti perkhidmatan dan harga. Kajian ini menggunakan kajian kuantitatif melalui borang soal selidik atas talian untuk
mengumpul data daripada responden. Responden dipilih daripada individu yang mempunyai pengalaman membeli di Only U Mobile Enterprise.
Sasaran populasi bagi kajian ini ialah seramai 135 orang responden. Teknik persampelan dalam kajian ini menggunakan teknik persampelan
bukan kebarangkalian iaitu merujuk kepada persampelan bertujuan. Semua data yang dikumpul akan dianalisis menggunakan perisian SPSS.
Keputusan kajian ini mendapati bahawa harga merupakan faktor terpenting dan mempunyai pengaruh signifikan yang positif terhadap kesetiaan
pelanggan. Bertentangan dengan persekitaran kedai dan kualiti perkhidmatan yang tidak signifikan mempengaruhi kesetiaan pelanggan.
Penyelidikan ini memberi pandangan berguna kepada Only U Mobile Enterprise untuk menerima pakai cadangkan yang dibentangkan dalam
kajian untuk meningkatkan kesetiaan pelanggan.
Keywords: Persekitaran kedai, Kualiti perkhidmatan, Harga, Kesetiaan pelanggan
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⬛ 1.0 INTRODUCTION
The telecommunications industry is made up of cable companies, internet service providers, satellite companies and
telephone companies. Telecommunications is defined as long-distance communication (Corporate Finance Institute, 2020).
Communication is a process in which information is transferred from source to destination. Information can take many forms
including voice, data, video, graphics and etc. The most basic way of communication is voice communication. People may interact
with one other through facial expressions and body language.
Only U Mobile Enterprise is a small and medium enterprises business. This enterprise operates in the mobile electronics
stores industry. It was registered under the name of the owner, Tan Kai Chuan. Only U Mobile Enterprise was established in 2014
and it operating in Malaysia located at Pt 4953, Jalan Tampin, 73400 Gemas, Negeri Sembilan. Products that included under the
company are smart phone, camcorders, and phone accessories for leading global brands. Some of our well-known brands are:
Samsung, Huawei, Oppo, Mi, Honor and others brands are available at Only U Mobile Enterprise. Besides from those products,
Only U Mobile Enterprise also has offer some services such as top up services and repair services.
Only U Mobile Enterprise is fully managed by Mr. Tan and his wife Mrs. Masuin only because it is a very small store
layout. Mr.Tan and his wife live at Bahau, Negeri Sembilan which is probably around 40km distance or 41 minutes from his house
to his business location - Gemas, Negeri Sembilan. The business operation time is from 3pm until 10pm every day including the
public holiday as well. Mr.Tan operate his business on 3pm is because his child back from school at 1pm so he need to pick up his
child from school before going to work.
Mr.Tan has set the vision of the Only U Mobile Enterprise which is to connecting people, businesses and communities
to a better future through electronic product. While the mission of the company is to become the first choose mobile electronics
stores for the Gemas villagers. The future goals of Only U Mobile Enterprise is to open a branch located at Bahau which is nearly
with his house and also launch an online stores.
1.1 Problem Statement
Customer loyalty has become a big problem for businesses in today's competitive industry. Customers can choose from
a variety of service providers in mobile electronics stores and actively exercise their right to switch from one service provider
to another. Customers that are loyal to a company are more likely to report positive financial results. Consumers that are loyal
not only boost the company's value, but they also allow it to keep costs lower than those associated with obtaining new customers
(Boora and Singh, 2011). To provide better services and acquire a competitive edge, operators must first understand customer
satisfaction and loyalty in order to deliver better services to customers. It's difficult to create a large consumer base when firms
offer similar products. In this circumstance, the only thing that will help to keep and attract customers is to build great customer
relationships.
Only U Mobile Enterprise faces an external threat from other similar company that sell the same products and services,
which led the customer switch to other company. Hence, the issues of customer loyalty was occur in Only U Mobile Enterprise.
Therefore this research is conduct to identify the factors that influence customer loyalty toward Only U Mobile Enterprise.
.
1.2 Research Questions
This study listed 3 main research questions:
RQ1: Are there any relationships between store environment, service quality and price with customer loyalty toward Only U
Mobile Enterprise?
RQ2: What is the most important factor that influences the customer loyalty toward Only U Mobile Enterprise?
RQ3: Will loyalty program improve the level of customer loyalty toward Only U Mobile Enterprise?
1.3 Research Objectives
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The specific objectives was listed based on the statement research question:
RO1: To identify the relationships of store environment, service quality and price with customer loyalty toward Only U
Mobile Enterprise
RO2: To investigate the most important factor influencing customer loyalty toward Only U Mobile Enterprise.
RO3: To explore whether loyalty program improve the level of customer loyalty toward Only U Mobile Enterprise.
⬛ 2.0 RESEARCH CONTEXT AND RESEARCH MODEL
2.1 Customer Loyalty
In today's commercial world, consumer loyalty is given a lot of thought and attention. Marketing's traditional role has
been to win customers and customer retention was not a priority. The majority of businesses lose their clients before or during
the repurchase decision due to owing to bad service. It demonstrates that a large number of customers are dissatisfied with the
company will looking for other alternatives. According to Johnson and Gustafsson (2006), many firms have evolved from
focusing on quality to focusing on customer happiness to focusing on customer loyalty as a panacea of the day over the last
two decades. According to Mei-Lien and Green (2010), customer loyalty is a “deep-seated desire to repurchase or patronise a
chosen product in the future, despite situational impact and marketing activities having the ability to trigger switching behaviour
and referrals to friends and associates”. Customer loyalty refers to a customer's favourable or negative feelings about a company
and its products and services. It is significant since a devoted customer will contribute to the company in the long run. As a
result, customer loyalty is largely determined by a provider's ability to retain consumers and persuade them to suggest its goods
and services to others.
2.2 Customer Relationship Management (CRM)
CRM is a customer relationship management method that allows companies to create and manage long-term connections
with their customers (Mojtaba, 2009). Customer Relationship Management (CRM) is the practise of improving the quality of
a company's relationship with its customers through enhancing customer satisfaction. It can be done by determining customers'
perceptions of a specific product or service supplied by a seller, trader, or supporting service that makes them loyal. According
to Lukas (2011), CRM success is driven by three primary factors: processes, people, and technology. A process is a system and
procedure that enables a company to better understand and relate to its customers. Human resources, as CRM organisers, play
a critical role that must be considered, including organisational structure, roles and responsibilities, company culture, and
procedure, while technology can serve as a supporting device to help the CRM process run more smoothly.
CRM is a technique that uses efficient management systems and customer-focused techniques to help companies create
long-term connections with customers and increase profitability. Customer relationship management (CRM) is a customer-
focused marketing activity that collects and manages customer information in order to better serve customers in the present and
future. CRM is a strategic marketing method for predicting, understanding, and managing consumer demand.
2.3 Research Model and Hypothesis
2.3.1 Store Environment (SE)
The physical atmosphere of a store, such as music, lighting, store layout, and goods placement, is a key part of marketing
(Hu & Jasper 2006; Wang & Ha 2011). Baker (1986) argued that the arrangement of the retail atmosphere may have a unique
emotional impact on customers, increasing their likelihood of making more purchases. Environmental influences are divided
into three groups which is ambient cues, design cues, and social cues. The components in the surroundings that influence a
customer's mood, such as temperature, music, and light, are known as ambient cues. Design cues, such as style, layout, and
architecture, are observable characteristics that attract customers. Social cues are customer-employee interactions that have a
substantial impact on customer perceptions of the store. Research believe that
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consumers will assess the store atmosphere, including music, temperature, and lighting. As a result of the above discussion,
the following hypothesis is proposed:
H1: There is significant relationship between store environment and customer loyalty on mobile electronics stores.
2.3.2 Service Quality (SE)
According to Kotler (2008), service is any intangible activity or action that one party can provide to the other party that
does not result in ownership. Physical products can be related with services, but services cannot be associated with physical
products. Quality can be described as a product's fitness for use or the extent to which it efficiently meets consumer needs
(Beverly et al., 2002). A combination of behaviours, traits, and strategies used to meet and satisfy customers' demands, wishes,
priorities, and preferences is referred to as service quality. The term "service quality" refers to a customer's overall assessment
of a company's service (Hussain et al., 2015; Wang, 2010). Based on the preceding explanation, the researcher hypothesis:
H2: There is significant relationship between service quality and customer loyalty on mobile electronics stores.
2.3.3 Price (P)
Price is considered the most variable part of the marketing mix since it changes quickly when the characteristics of
product changed (Dovaliene & Virvilaite, 2008). Because it affects company profit, price is an important component of a
product. Consumers consider pricing while deciding whether or not to buy, hence it necessitates particular considerations when
selecting that price. According to Kotler and Keller (2006), is the sum of money paid by a buyer to a seller in exchange
for a good or service. Furthermore, the price can be viewed as the amount of money (plus a few other items) required to
obtain the number of different combinations of goods and services (Swastha and Irawan, 2005). When clients are looking for
mobile electronics retailers, they will mostly compare prices with other stores. As a result, the following hypothesis was
developed:
H3: There is significant relationship between price and customer loyalty on mobile electronics stores.
2.4 Research Framework Model
By illustrating this research framework model, the relationship between the factors are shown and summarized clearly. On
the middle side of the framework depicts the independent variables which are store environment, service quality and price.
There variables will be the assume factors affecting customer loyalty toward Only U Mobile Enterprise.
Figure 1: Research Framework Model
⬛ 3.0 RESEARCH METHODOLOGY
3.1 Research Design
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Research design is an action plan or model for implementing a marketing research project. It is critical in the research
process because a research design can clearly outline the method of gathering the information required by the structure in each
step and solving the management decision problem (Malhorta,2012). There are two sorts of research designs: exploratory
design and conclusive design.
In this study, a conclusive research design was used. Conclusive research design also aims to provide better information
for reaching a conclusion or making a decision. There are two forms of study in a conclusive research design: descriptive
research and causal research. The descriptive research approach will be employed in this study because the data provide a
systematic description that is almost accurate and represents the groups.
Descriptive research method is further categorized into two parts: cross-sectional design and longitudinal design. In the
study, a single questionnaire response will be allowed for each targeted respondent. As a result, rather than using a longitudinal
methodology, this study uses a cross-sectional design because a cross-sectional design only requires just one response, whereas
a longitudinal design necessitates repeated observations for a given variable throughout time.
3.2 Sampling Technique
Non-probability sampling, also known as judgemental (purposive) sampling, will be employed in this study. Judgmental
sampling is a type of convenience sampling in which population items are deliberately picked based on the researcher's
perspective. This sampling technique is the most appropriate as the selected respondents were users who have the purchases
experience at Only U Mobile Enterprise.
3.3 Population and Sample
A population is a collection of items that have the information that the researcher is looking for. By selecting the target
population for the research problem, the same common feature can be determined. The amount of components that can be
included in a research study is referred to as a sample. The five-to-one ratio, according to Tabachnick and Fidell (2007),
calculates the minimal size from the number of variables to be examined. The following are the equations:
Independent Variables = (5 * 5) + (5 * 5) + (4 * 5) = 70
Dependent Variable = (4 * 5) = 20
Demographic = (5 * 5) = 25
Minimum number of sample = (IV + DV + Demographic)
= (70 + 20 + 25) = 120 respondents
The total minimum number of respondents = 115
Based on the calculation above, the minimum sample of respondents is 115 respondents. However, researcher success to
receive over the minimum number of sample size and the total of the respondents in this research is 135 respondents.
3.4 Data Collection Method
In this study, the primary data were collected by questionnaire survey method Primary data are data collected directly
from the respondents to address the research problem (Malhotra, 2009). In this study, respondents were given the questionnaires
through Google Form. The survey method is deemed appropriate when a study contains a large number of respondents. The
respondents have freely agreed to take part in this survey. The six marketing steps were used in this research included
identifying the problem, devising the methodology, formulating the research design, collecting the data,
analysing the data and organising and presenting the study results. These procedures were followed to ensure positive and
successful results.
3.5 Research Instrument
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As references from earlier research were modified to suit this study, as well as to assure the reliability and validity of
items, the instrument was adapted from a variety of constructs in the literature.
The variables were assessed by using questionnaires that were distributed via Google Form. The questionnaire
comprised of three sections; Sections A to C. All of the questions in Sections A, B, and C must be answered by respondents.
Respondents must complete Section A, which includes demographic questions such as gender, age, ethnicity, monthly income
level, and frequency of visiting a mobile electronics store in a month before going to the next section. Section B lists the three
factors of independent variable (store environment, service quality, price) while the questions in Section C are about the
dependent variable (customer loyalty). Section B and C will be measured by 5-point Likert Scale. Respondents were asked to
answered by 1 to 5 where “1” is represents strongly disagree and “5” is represents strongly agree. Respondents are required to
answer all of the questions completely.
Section: Content
Section A Demographic profile
Section B Independent variables (IV) – Store Environment, Service Quality and Price
Section C Dependent variables (DV) – Customer Loyalty
Table 3.1: Sections of Questionnaire
3.6 Data Analysis Design
The Social Sciences Statistical Package (SPSS) will used to analyse the data from this study. SPSS is a reliable,
comprehensive, and effective software application that is used to examine the relationship between the independent variables
(store environment, service quality and price) and dependent variable (customer loyalty) towards Only U Mobile Enterprise.
Research Objective 1. To identify the relationships of store environment, service quality and price with
customer loyalty toward Only U Mobile Enterprise.
Independent Variable (IV) Store environment, Service quality, Price
Dependent Variable (DV) Customer loyalty toward Only U Mobile Enterprise
Statistical Measures Multiple Regression
Research Objective 2. To investigate the most important factor influencing customer loyalty toward Only U
Mobile Enterprise.
Statistical Measures Beta coefficient (β)
3. To explore whether loyalty program improve the customer loyalty toward Only U
Mobile Enterprise.
Statistical Measures Paired Samples T-test
Table 3.2: Statistical Test
3.6.1 Descriptive analysis, Reliability Test, Normality Test, Multiple Regression, Beta Coefficient, Paired Sample T-test
To summarize the data frequency and calculate the mean, median, and mode, descriptive analysis was performed. The
demographic background of respondents in terms of gender, age, ethnicity, monthly income level, and frequency visiting mobile
electronics store in a month was tested using descriptive analysis in this study. The scale that determines whether or not the data
is devoid of random error is known as reliability. The reliability of both dependent and independent variables was investigated
using Cronbach’s coefficient alpha (CA) in this study. Normality tests are performed on all dependent and independent variables
in terms of Skewness and Kurtosis. If Skewness is between -2 and +2, and Kurtosis is between -7 and +7, a collection of data is
deemed normally distributed. Multiple regression is used to measure and analyses the relationship between a continuous
dependent variable and a set of independent variables. Beta coefficient allowed the researcher to identify and compare the
independent factors, as well as choose the best predictor among the independent variables (store environment, service quality,
and price) that influenced the dependent variable (customer loyalty). In a paired sample T-test, the mean score for the same group
of respondents was compared in two different situations. Hence in this research, the paired sample T-test is implemented to
evaluate the pre and post impact of the intervention (loyalty program) on dependent variable.
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3.7 Research Intervention
The effects of an intervention on a certain outcome or interest are studied in intervention research. The main goal of
intervention research is to produce a desirable outcome for the people who need it. As a result, intervention research differs from
prevention research, in which the goal is to avoid a negative consequence, or even traditional laboratory experimentation, in
which the goal is frequently to validate specific principles of theoretical paradigms.
In this research, researcher plan to propose a loyalty program as a intervention for the problem that state at the Chapter
1. The loyalty program divide by three part which is reward points, punch card and cash back.
Reward points are a type of incentive earned through making purchases. For example, customer will earn 1 point when
they spend for every RM2. The points can use to redeem certain products that offer by Only U Mobile Enterprise. Punch card is
a token that lets a customer earn free product/service or discounts after a certain number of purchases. For example, researcher
propose a 10 times purchases get 10% discounts on the next purchases on Only U Mobile Enterprise and need to show the punch
card while making the payment. Cash back is a loyalty program that encourages customers by giving back a certain percentage
of the amount spent. For example, when customer spent a minimum RM100 per transaction at Only U Mobile Enterprise,
customer will get a certain percentage of cash back.
⬛ 4.0 DATA ANALYSIS AND FINDINGS
The relationship between store environment, service quality, and price with customer loyalty toward Only U Mobile
Enterprise is hypothesized in this study. Statistical Package for Social Science (SPSS) software was used to analyses the data.
Table 4.1 shows a summary of the statistical test.
Variable Type
Research Objective Statistical Measure
Independent Variable Dependent Variable
To identify the relationships of store
environment, service quality and Store environment, service
price with customer loyalty toward quality and price Customer Loyalty Multiple Regression
Only U Mobile Enterprise.
To investigate the most important
factor influencing customer loyalty Store environment, service Customer Loyalty Beta Coefficient (β)
quality and price
toward Only U Mobile Enterprise.
To explore whether loyalty program Intervention – Loyalty
improve the level of customer
loyalty toward Only U Mobile program Customer Loyalty Paired Sample T-test
Enterprise.
Table 4.1: Statistical Test
4.1 Descriptive Analysis
4.1.1 Respondents Background
The demographic frequencies analysis of 135 respondents is shown in Table 4.2, which includes gender, age, ethnicity,
monthly income level and frequency of visiting mobile electronics store in a month. According to the data, there are more
number of female respondents (62.2%) than male respondents (37.8%). The majority of the respondent are between the age
from 16 to 25 years old (94.1%), followed by 26 to 35 years old (3.7%), 46 to 55 years old (1.5%), 15 years old and below
(0.7) and finally the least is 36 to 45 years old and 56 years old and above (0%). In this research, Chinese (83.0%) represented
the highest category and it followed by Malay (13.3%), Indian (2.2%) and others (1.5%). Furthermore, most of the respondents
monthly income level is below RM 1000 monthly (85.2%) follow by RM1001 to RM3000 (10.4%), RM 3001 to RM 5000
(3.7%), RM9001 and above (0.7%), RM 5001 to RM 7000 (0%) and RM 7001 to RM 9000 (0%). Besides
that, in term of frequency visiting the mobile electronics store in a month, the result showed that most of the respondents were
visit 3 time and below (92.6%), followed by 3 to 6 times (5.9%), 6 to 10 times and 15 times and above (0.7%) and the
least is 11-15 times (0%).
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Demographic Profiles Characteristics Frequencies Percentage (%)
Male 51 37.8
Gender
Female 84 62.2
15 and below 1 0.7
16 - 25 years old 127 94.1
Age 26 – 35 years old 5 3.7
36 - 45 years old 0 0
46 – 55 years old 2 1.5
56 and above 0 0
Malay 18 13.3
Chinese 112 83.0
Ethnicity
Indian 3 2.2
Others 2 1.5
Below RM 1000 115 85.2
RM1001-RM3000 14 10.4
RM3001-RM5000 5 3.7
Monthly Income Level
RM5001-RM7000 0 0
RM7001-RM9000 0 0
RM9001 and above 1 0.7
3 time and below 125 92.6
Frequency of visiting 2-6 times 8 5.9
mobile electronics store in 6-10 times 1 0.7
a month 11-15 times 0 0
15 time and above 1 0.7
Table 4.2: Summary of Respondent’s Demographic
4.2 Scale Measurement
4.2.1 Normality Test
In this research, all dependent and independent variables are subjected to normality test in terms of Skewness and Kurtosis.
According to Hair et al. (2010) & Bryne (2010), “A data is considered to be normally distributed if the value of Skewness
between -2 to +2 and Kurtosis value has to be between -7 to +7”. The results of normality test based on Skewness and Kurtosis.
Is shown in Table 4.3.
N Valid Skewness Kurtosis
Variables
(Statistic) Value SE Value SE
Store Environment 135 -.566 .209 -.121 .414
Service Quality 135 -.962 .209 1.162 .414
Price 135 -.561 .209 -.188 .414
Customer Loyalty 135 -.823 .209 .822 .414
Table 4.3: Result of Normality Test
The result of normality test shown at Table 4.3 in this study for all the variable are consider normally and perfectly
symmetrical distribution because all the Skewness values fall into the ideal range between -2 to +2 and Kurtosis value fall in
to range between -7 to +7. The skewness for store environment is -0.566 and the kurtosis is 0.121. Followed by service quality,
the skewness is -0.962 and the kurtosis is 1.162. Meanwhile price have the value for the skewness of -0.561 and the kurtosis is
-0.188. Customer loyalty have the skewness of -0.823 and the kurtosis is 0.822.
4.2.2 Reliability Test
Reliability test is performed in order to ensure that the results of variables used in this research are trustworthy and
reasonable. The Cronbach’s Alpha is used to examine the reliability of the variables. Reliability coefficient is higher than
0.70 is considered reliable (Cronbach & Shavelson, 2004).
325
Items Number of Cronbach’s
Variables Relationship
Items Alpha
“The physical facilities at stores are visually
appealing”.
‘The store layout makes it easy for
customers to find what they need“.
“The store layout makes it easy for
Store Environment 5 0.799 High
customers to move around in the shop”.
“The overall lighting level in the store
environment is appropriate”.
“The temperature in the store environment is
comfortable”.
“Generally, the employees of the company
are approachable and easy to contact”.
“Generally, the employees of the company
firm make the effort to understand my
needs”.
“Generally, the employees of the company
provide service reliably, consistently, and
Service Quality 5 0.919 Excellent
dependably“.
“Generally, the employees of the company
are willing and able to provide service in a
timely manner“.
“Generally, the employees of the company
are competent (i.e., knowledgeable and
skillful)”.
“The price I paid was honest”.
“The price I paid was justified”.
Price “The prices of the product is an acceptable 4 0.905 Excellent
level”.
“The prices of the product is reasonable”.
“I consider the company as my first choice”.
“I will patronize the company more in the
next few years”.
Customer Loyalty 4 0.912 Excellent
“I have encouraged others to patronize the
company”.
“I feel better when I go to this company”.
Table 4.4: Result of Reliability Test
Table 4.4 illustrate the reliability test result by using Cronbach’s Alpha for this study. The closer the reliability CA
coefficient value get to 1.0, the better the scale is. Variables with values between 0.70 and above will be considered relevant
and reliable to use. As a result, all of the constructs use in this study show internal consistency and reliability, as the
Cronbach's Alpha coefficient values are all more than 0.7.
4.3 Multiple Regression
The relationship between independent variables and continuous, dependent variables is investigated using multiple
regression. To obtain the results, the variables must be an interval or scale level variable that is normally distributed in the
research. If the significant value is less than 0.05, the results should show a positive result, indicating that the independent
variables have a relationship with the dependent variables. On the other hand, the standardized coefficients beta value is used
to determine which independent variables have the strongest relationship with the dependent variable.
Standardized
Model T Sig.
Coefficients Beta
(Constant) .411 .682
326
Store Environment .074 .835 .405
Service Quality .172 1.869 .064
Price .445 5.247 .000
Dependent Variable: Customer Loyalty
Table 4.5: Multiple Linear Regression for Coefficient
Only one variable, price (β = 0.445, sig = 0.000) was found to be statistically significant in Table 4.5. The other variables
reveal that they are no significant in relation to the continuous, dependent variables because their significant value is more than
0.05, which is store environment (β = 0.074, sig = 0.405) and service quality (β = 0.172, sig = 0.064). As a result, the strongest
factor that influenced by customer loyalty is price because the coefficients beta value (β) is the highest in the study.
Model R R Square Adjusted R SE of the Estimate
1 . 599 .359 .345 .75407
Table 4.6: Multiple Regression – R Square
According to table 4.6, the R-square value is 0.359, indicating that the independent variables of store environment, service
quality, and price account for 35.9% of the variance. Moreover, another independent variable that is not assessed in this study
contributes an additional 64.1% to customer loyalty. Meanwhile, the adjusted R value is 0.345, indicating that independent
factors explained 34.5% of the variance in this study.
4.4 Paired Sample T-test
Paired samples t-test has been used to evaluate the impact of the intervention – loyalty program on dependent variable in
this research. The value of significant must be less than 0.05 to show the effectiveness of the intervention – loyalty program on
dependent variable.
Intervention Results
T-test Sig. (2-tailed) 0.000 (p > 0.05)
Pre 3.6907
Mean Post 4.5981
Table 4.7: Paired Sample T-Test Result for Intervention-Loyalty program
Based on the table 4.7, there was a statistically increase in pre intervention (M=3.6907) and post intervention – loyalty
program (M=4.5981). The sig (2-tailed) is 0.000 which the significant value is less than 0.05, therefore it can be conclude
that there is a significant difference between pre and post intervention – loyalty program in this study.
4.5 Summary of Findings
Support of
Research Objective Research Hypothesis Hypothesis (Yes or Result
No)
327
H1: There is significant relationship No p = <.05 (β = .0074,
between store environment and
customer loyalty on mobile p = .405)
electronics stores.
RO1: To identify the
relationships of store
environment, service quality H2: There is significant relationship p = <.05 (β = .172,
and price with customer loyalty between service quality and customer No
toward Only U Mobile loyalty on mobile electronics stores. p = .064)
Enterprise
H3: There is significant relationship p = <.05 (β = .445,
between price and customer loyalty Yes p = .000)
on mobile electronics stores
Research Objective Result
RO2: To investigate the most important factor influencing customer
loyalty toward Only U Mobile Enterprise. Price (β = .445, p < .000)
RO3: To explore whether loyalty program improve the level of customer Significant difference between pre and post
loyalty toward Only U Mobile Enterprise. intervention
Table 4.8: Summary of Findings
⬛ 5.0 DISCUSSION AND CONCLUSION
This chapter includes a deliberate discussion on the findings derived from the previous chapter. Each discussion is carried out
to achieve the objectives of this research as mention at Chapter 1. The argument in the discussion will be based on literature
review in Chapter 2. Other than that, this chapter will also conclude the whole study. Lastly, several suggestions will be
discussed for further research related to this study.
5.1 Hypothesis Discussion
The following sections describe the multiple regression results for each hypothesis. In short, if there is a significant
relationship with the dependent variable in customer loyalty, there is a significant relationship among the independent variables
of store environment, service quality and price.
5.2.1 H1: There is significant relationship between store environment and customer loyalty on Only U Mobile
Enterprise.
Support to Hypothesis Results
(Supported or Not Supported)
Not Supported Sig. : p>0.05 : 0.405
ß value = 0.074
Table 5.1: Result of Hypothesis 1
Unexpectedly, result table 5.1 show that H1 is rejected since there is no significant relationship between store
environment and customer loyalty toward Only U Mobile Enterprise. The result (β = 0.074, sig = 0.405) indicate that store
environment is not positively linked to the level of customer loyalty toward Only U Mobile Enterprise. The finding indicates
328
that the store layout, store lighting level and temperature does not have a strong influence on customer loyalty toward Only U
Mobile Enterprise. In conclusion, store environment does not affect the customer loyalty toward Only U Mobile Enterprise.
Therefore, H1 is not supported.
5.2.2 H2: There is significant relationship between service quality and customer loyalty on Only U Mobile Enterprise.
Support to Hypothesis Results
(Supported or Not Supported)
Not Supported Sig. : p>0.05 : 0.064
ß value = 0.172
Table 5.2: Result of Hypothesis 2
Based on the table 5.2, H2 is rejected because the result of service quality exemplifies that there is no significant
relationship toward the customer loyalty. Through the finding (β = 0.172, sig = 0.064) shows that the service quality does not
significant correlate with the customer loyalty toward Only U Mobile Enterprise. The result differed from Lee, H. S. (2013)
which said that service quality has significant antecedent of customer satisfaction which customer satisfaction will influence
the customer loyalty at the end as well. This shows some relevance of TRA in investigating the customer loyalty although
service quality is not found to be the significant predictor. In conclusion, service quality is not a factor that predicts the customer
loyalty toward Only U Mobile Enterprise. Therefore, H2 is not supported.
5.2.3 H3: There is significant relationship between price and customer loyalty on Only U Mobile Enterprise.
Support to Hypothesis Results
(Supported or Not Supported)
Supported Sig. : p<0.05 : 0.000
ß value = 0.445
Table 5.3: Result of Hypothesis 3
The H3 result is accepted because it shows that there is a relationship between price and customer loyalty toward Only
U Mobile Enterprise. Price results (ß = 0.445, sig = 0.000) stipulate that there is a strong relationship with customer loyalty
toward Only U Mobile Enterprise. The finding is aligned with previous research results by Saadat, N., & Nas, Z. (2013) proved
that the price has a significant impact on customer loyalty. This mean that price is a prime determinant in the customer loyalty.
If the price of products or services at Only U Mobile Enterprise is much lower that other company with same quality, customer
will have a greater intention to purchases and repurchases at Only U Mobile Enterprise. To sum up, the price has a major
determinant on customer loyalty toward Only U Mobile Enterprise. Therefore, H3 is supported.
5.3 The Most Importance Factor Influencing Customer Loyalty Toward Only U Mobile Enterprise
Factor Results
Price Sig. : p<0.05 : 0.000
ß value = 0.445
Table 5.4: Most Important Factor (Multiple regression)
Through multiple regression analysis, the determinant that plays a crucial role that influenced customer loyalty toward
Only U Mobile Enterprise has been identified. The table 5.4 display the most importance factor that influence customer
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