Published on International Journal of Economics & Business
Publication Date: October 2018
Faculty of Economic and Bussiness
University of Jember
This study aims to determine and analyze the dimensions of brand equity in establish customer satisfaction. Research variables are brand equity dimensions which consist of brand awareness (X1), brand association (X2), quality impression (X3), and brand loyalty (X4) and consumer satisfaction (Y). Research analysis is a simple linear regression analysis (simultaneous) and multiple regression (partial), which serves to determine and analyze the direction of influence and the tendency of the influence of independent variables on the dependent variable. The results showed that the dimensions of brand equity consisting of brand awareness, brand associations, perceived quality, and brand loyalty influence the positive direction and the tendency level of influence that is relatively strong and moderate to customer satisfaction, while the dimensions of brand equity affect the positive direction and tendency level relatively strong influence on customer satisfaction.
Keywords: Brand Equity Dimensions, Customer Satisfaction, Direction and Trends in Influence
Building a company that is sensitive to market desires is not easy. Even though there is no sensitivity to market desires, it is difficult to build a strong brand, because the brand is the most important dimension for a product. Brands have an important role in marketing because brands are one of the important elements in marketing a company’s products, especially for new products as a differentiator with similar products. There is a considerable distinction between products and brands. The product is only something produced by the factory, while the brand is something that consumers buy. If the product can be easily copied by competitors, the brand must always have a uniqueness that is difficult to imitate. According to Aaker (in Tjiptono, 2000:41), states a set of brand assets and liabilities relating to a brand, its name and symbol that adds or reduces the value provided by a product or service to a company or company customers. In the concept of brand equity there are 5 dimensions of brand equity consisting of 4 main dimensions and 1 dimension which are influenced by the four other dimensions of brand equity. The main dimensions of brand equity include brand awareness, brand loyalty, perceived quality, brand association, and one dimension that is influenced by the other four dimensions of brand equity, namely brand rights others (patents, trademarks, channel relationships).
Nowadays there is a growing concern for consumer satisfaction, it is seen that more and more producers are involved in meeting the needs and desires of consumer. therefore it is very important for a company to focus on paying attention to customer satisfaction. The use of brands and focus on customer satisfaction are basic factors that can encourage consumers to make purchases and shape consumer behavior. Some restaurant management in Jember Regency who use the name of the restaurant that is actually not related to the menu offered, but customers are very enthusiastic in visiting and enjoying a meal in the restaurant. Famous restaurants in Jember Regency are Bu Lanny’s Restaurant, Pak Haji Slamet Restaurant, Wong Solo Restaurant, Kalasan Restaurant, and Lestari Restaurant. This restaurant uses the name of the owner and also just the name or also not related to the various foods offered. However, it is still used as a restaurant brand. The restaurant business place still has the hallmark of the dish, because the menu of dishes served has been known for its deliciousness long ago, so that the restaurant owners take advantage of the opportunities that exist to develop their business with a distinctive taste of the various foods listed on the menu. In the beginning this restaurant business could not be directly known to many people, but now many customers are proud that they eat in some of these restaurants.
The success of the restaurant management with its big name and well-known brand among the food-lovers community has provided an interesting and unique phenomenon of a brand. The restaurant that has been mentioned is true, in developing its business has managed to put the restaurant brand in the hearts of its customers. Existing problems are interesting to study, then the formulation of the problem in this study are:”1) How does the influence of the brand equality dimension consist of brand awareness, brand association, impression of quality, and brand loyalty to customer satisfaction ?; 2) How is the influence of the brand equity dimension on customer satisfaction “. The research objectives are:”1) To find out and analyze the influence of brand awareness, brand association, impression of quality, and brand loyalty on customer satisfaction, 2) To find out and analyze the influence of brand equity dimensions on customer satisfaction”.
2. LITERATURE REVIEW
According to Tjiptono (2000:39) basically a brand is not only interpreted as a name but a brand is a promise of a seller or producer to deliver a series of specific characteristics or features, benefits, characteristics, services and specific services consistently to buyers or consumers. Good brands also convey additional guarantees in the form of quality assurance, because without good quality, a product will automatically disappear from the market because consumers shun it. A brand is said to be special if the consumer feels and believes that the brand is truly special or has distinctive characteristics. Meanwhile, according to Aaker (1997:9) the brand is a name or symbol that is distinguishing (such as logos, stamp, or packaging) with the intention of identifying goods or services from a seller or a particular group of sellers, thus distinguishing them from the goods and services produced by competitors or other companies.
According to Aaker (1997:22), brand equity is a set of brand assets and liabilities that relate to a brand, name and symbol, which increase or decrease the value provided by an item or service to the company and its customers. Keller (in Tjiptono 2007:111) brand equity is the effect of differentiation from a combination of brand awareness and brand meaning on customer response to brand marketing. 5 dimensions of brand equity, namely 1) brand awareness. Refers to the extent to which a brand is known or lives in the minds of consumers; 2) Brand association. Reflecting the image of a brand to a certain impression in relation to habits, lifestyle, benefits, product attributes, geography, prices, competitors, celebrities and others; 3) Quality impression. Reflect customer perceptions of the overall quality / superiority of a product or service in relation to the intended purpose. The impression of quality is also a brand association that is viewed from the perspective of consumers, where a brand is perceived as a high quality product; 4) Brand loyalty. Reflecting the level of consumer engagement with a company; 5) other brand rights assets, such as patents, trade-marks, distribution channels and others.
Mowen (2002:89) consumer satisfaction is defined as the overall attitude shown by consumers on goods or services after they have obtained and used them. This is a post-election evaluative assessment caused by a special purchase selection and experience using or consuming the item or service. Kotler in Wulandari (2005:36), customer satisfaction is defined as the level of one’s feelings after comparing the performance he feels compared to expectations. Enggel in Wulandari (2005:36) defines satisfaction as a post-consumption evaluation that an alternative chosen at least meets or exceeds expectations. If product performance is in line with expectations, consumers will feel satisfied. Conversely, if the product performance is not in line with expectations, consumers will feel dissatisfied.
Mowen (2002:89), in determining the level of customer satisfaction, there are five main factors that must be considered by the company, namely; 1) Product quality. Consumers will feel satisfied if the results of their evaluation indicate that the products they use are of high quality; 2) Quality of service. Consumers will feel satisfied if they get good service or as expected; 3) Emotional. Consumers will feel proud and get the confidence that other people will be amazed by him when using products with certain brands that tend to have a higher level of satisfaction. Satisfaction obtained is not due to the quality of the product but the social value that makes consumers satisfied with a particular brand. 4) Price. Products that have the same quality but set prices that are relatively cheap will provide higher value to consumers. 5) Costs. Consumers who do not need to incur additional costs or do not need to waste time to get a product or service that tends to be satisfied with the product or service.
The ability of consumers to recognize or remember a brand of a product is different depending on the level of brand communication or consumer perception of the product brand offered. If consumers feel satisfied, then the ability of consumers to recognize and remember the brand is getting stronger, so consumers will make repeat purchases (Durianto, 2004:30). The impression that comes to one’s mind is closely related to customer satisfaction. The more consumers are satisfied with the performance of a product, the stronger the impression that will appear in the minds of consumers. Satisfaction forms an impression in the minds of consumers, the more satisfied consumers are, the stronger the impression that comes to consumers’ minds. (Durianto, 2004:61). Consumer perception appears to be a comparison between customer satisfaction and the performance of a product with another product. Satisfaction is the most powerful measure of the performance of other products (Simamora, 2003:78). Brand loyalty has a close relationship with customer satisfaction, where brand loyalty is directly influenced by satisfaction with brands that have been accumulated within a certain period of time as well as the perception of product quality. In addition, the level of consumer satisfaction will affect the degree of consumer brand loyalty, because one of the factors that influence brand loyalty is consumer satisfaction (Mowen, 2002:109).
Figure 1. Conceptual Framework
3. RESEARCH METHODOLOGY
Research on the dimensions of brand equity in influencing customer satisfaction can be classified as explanatory research. According to Singarimbun (2005:5), explains that explanatory research is a research that explains the causal relationship between variables through the submission of hypotheses using the same data.
Population is the total number of units of analysis whose characteristics will be expected (Singarimbun, 2005:152). The population in this study is all customers of the five famous restaurants in Jember Regency namely Bu Lanny’s Restaurant, Pak Haji Slamet Restaurant, Wong Solo Restaurant, Kalasan Restaurant, and Lestari Restaurant. The sample is a portion of the population that can be used as an object in research (Sugiyono, 2008:122). The sampling method in this research is using multistage sampling. Phase 1 is to use cluster sampling as a determinant of homogeneous restaurant groups or are considered similar. The second stage is using purposive sampling as a determinant of respondents with certain criteria that are appropriate and suitable as respondents. Customers who were made respondents were customers who had purchased more than 3 times in the five restaurants. The third stage is using proportional sampling as a determinant of the number of respondents in each object under study. Proportional sampling will relate to the distribution of the number of respondents that correspond to the many samples used.
Determination of the number of samples in this study using the opinion of the Roscue (in Sugiyono 2008:129), giving advice about the size of the research sample; 1) The sample size that is feasible in the study is between 30 to 500, and; 2) If the research will do multivariate analysis, the number of sample members is at least 10 times the number of indicators studied. The number of samples made as respondents is equal to 10 times the number of variables, in this study there are 4 independent variables and 1 dependent variable, so that the total variables are 5, the number of samples to be made as respondents is 150 respondents. Distribution of 150 respondents, obtained from the value of the number of customer visits to restaurants in each week divided by the total value of the total number of customer visits to the restaurant then multiplied by the number 150 respondents, namely Mrs. Lanny’s Restaurant as many as 43 respondents, Pak Haji Slamet’s restaurant as many as 21 respondents, Wong Solo Restaurant as many as 29 respondents, Kalasan Restaurant as many as 21 respondents, and Lestari Restaurant as many as 36 respondents.
Independent variables are variables that influence or cause changes (Sugiyono, 2007:59). Independent variables in research; 1) Brand Awareness (X1), with indicators; (a) consumer recognition of product brands; (b) consumer recognition of symbols, logos, and other attributes, and; (c) the restaurant is the main choice; 2) Brand Association (X2), with indicators; (a) strategic location; (b) affordable menu prices, and; (c) various menus; 3) Quality impression (X3), with indicators; (a) the quality of the product provided; (b) the menu displayed is interesting, and; (c) The taste of food meets the taste; 4) Brand loyalty (X4), with indicators; (a) liking for restaurant products; (b) the rate of repurchase, and; (c) recommendations to others.
Bound Variables are variables that are affected or that are due to the existence of an independent variable Sugiyono (2007:59). The independent variable in this study is consumer satisfaction (Y), with indicators (a) satisfied with the menu served or offered by the restaurant; (b) satisfied with restaurant service, and; (c) no complaints about the restaurant.
The scale used in this study is the Likert scale. Maholtra (2008:132), Likert scale is used to measure attitudes, opinions, and perceptions of a person or group of people about social phenomena. The Likert scale consists of five alternative answers that contain multilevel variation of values from the object of research through the answers to questions given a value of 1 to 5.
Simple and multiple linear regression analysis is one analysis that aims to determine and analyze the direction of influence and the tendency of the influence of a variable on other variables. Regression analysis, influencing variables are called independent variables and influencing variables are called dependent variables. If in the regression equation there is only one independent variable and one dependent variable, it is called simple regression, whereas if the variable is more than one free, then it is called a multiple regression equation (Riduwan, 2007:174). Simple and multiple linear regression equations are formed;
Y = a + b1X1 + b2X2 + b3X3 + b4X4 + e (equation 1)
Y = a + b1X1+ e (equation 2)
4. RESEARCH RESULT
4.1 Characteristics of Respondents
Characteristics of age between 21-30 years amounted to 40 people or 27%, between 31-40 years amounted to 73 people or 49%, between 41-50 years amounted to 25 or 17%, and above 50 years amounted to 12 people or 8%. Male gender characteristics numbered 117 people or 78%, and women numbered 33 people or 22%. The characteristics of the profession as entrepreneurs amounted to 93 people or 62%, employees numbered 23%, civil servants numbered 7 people or 5%, and students numbered 15 people or 10%.
4.2 Instrument Test
The instrument test used in this study is the validity test, reliability test, and data normality test. Validity test with Pearson’s product moment test shows the indicator significance value below 0.05 or 5%, can be declared valid. Reliability test with cronbach alpha test shows the overall value of the indicator above 0.6, is declared reliable. Data normality test with the Kolmogorov-Smirnov test shows the overall value of the variable is above 0.05 or 5%, otherwise the data is normally distributed.
4.3 Classic assumption test
Assumption Test uses the BLUE method (best linear unbiased estimator) that is a model with normal distribution, absence of multicollinearity and absence of heteroscedasticity.
4.3.1 Model Normality Test
Figure 2. Model Normality test
Figure 2, shows the multiple linear regression analysis model and simply assumes normal distribution, because the data spread around the diagonal line and follow the direction of the diagonal line.
4.3.2 Multicollinearity Test
The assumption of multicollinearity uses the variance inflation factor (VIF) value. Multicollinearity indication occurs if VIF > 10, then this variable has multicollinearity problems with other independent variables.
Tablel 1. Multicollinearity Test
Variabel VIF Cutt off Explanation
Brand Awareness (X1) 1,041 < 10 There is no multicollinearity Brand Association(X2) 1,154 < 10 There is no multicollinearity Quality Perception (X3) 1,078 < 10 There is no multicollinearity Brand Loyalty (X4) 1,130 < 10 There is no multicollinearity Table 1 shows that there is no multicollinearity between the independent variables used in the study because it shows the VIF value < 10. * The assumption of multicollinearity is only used for multiple linear regression analysis. 4.3.3 Heteroscedasticity Test Figure 3. Heteroscedasticity Test Figure 3, shows the absence of heteroscedasticity, because the distribution of data does not form a certain line or there is no clear pattern, and the distribution of coordinates is above and below zero on the Y axis. 4.4 Model Fit (F test) The F test functions as a predictive feasibility of a simple and multiple linear regression model. Multiple linear regression analysis, F distribution table is searched at α = 5%, with degrees of freedom (df) df1 or 5-1 = 4, and df2 n-k-1 or 150-4-1 = 145 (2.28). While the linear regression analysis is simple, the F distribution table is searched at α = 5%, with degrees of freedom (df) df1 or 2-1 = 1, and df2 n-k-1 or 150-1-1 = 148 (3.91). Tabel 2. Model Fit (F test) F test F-c F-table Sig a explanation Multiple regression 31,395 > 2,28 0,000 < 0,05 Model fit Simple regression 42,359 > 3,91 0,000 < 0,05 Model fit The results of the F test for multiple linear regression analysis and simple linear regression analysis formed are declared feasible with predictive accuracy in suitable or appropriate models. 4.5 Simple and Multiple Linear Regression Analysis The results of multiple linear regression analysis are used to determine and analyze the direction and tendency of influence partially, while simple linear regression analysis is used to determine and analyze directives and trends of influence simultaneously. Overall, the regression analysis functions as a direction analysis of the influence and tendency of the influence of independent variables which include brand awareness, brand association, perceived quality and brand loyalty towards the dependent variable, namely customer satisfaction. Table 3. Linear Regression Analysis Regression Analysis Variable Standardized t-c Sig. explanation Coefficients B Multiple Regression (Partial) (Constant) 0,847 Brand Awareness (X1) 0,235 2,507 0,000 Significant Brand Association (X2) 0,281 3,015 0,000 Significant Quality Perception (X3) 0,338 3,557 0,000 Significant Brand Loyalty (X4) 0,257 2,785 0,000 Significant Adjusted R Square (R2) = 0,742 or 74,2% Simple Regression (Simultaneous) Variable Standardized t-c Sig. explanation Coefficients B (Constant) 1,173 Brand Equity (X) 0,547 5,324 0,000 Significant R Square (R) = 0,871 or 87,1% Based on the regression coefficient, simple linear and multiple linear regression equations that can be formed are; Y = 0,847 + 0,235 X1 + 0,281 X2 + 0,338 X3 + 0,257 X4 + 387 e (equation 1) Y = 1,173 + 0,547 X + 271 e (equation 2) Hypothesis testing is done to find out the independent variables significantly affect the dependent variable. Multiple linear analysis, t distribution table is sought at α = 5%, with degrees of freedom (df) n-k-1 or 150-4-1 = 145 (1,976). The results of multiple regression analysis states that brand awareness, brand association, and brand loyalty have a significant effect on the positive direction and with a relatively moderate level of tendency towards customer satisfaction, while quality perception has a significant effect on the positive direction and with a relatively strong tendency towards consumer satisfaction. Simple linear regression analysis, t distribution table is found at α = 5%, with degrees of freedom (df) n-k-1 or 150-1-1 = 148 (1,975). The results of simple regression analysis state that the brand equity dimension has a significant effect on the positive direction and with a relatively strong tendency toward consumer satisfaction. 4.6 Determination Coefficient The coefficient of determination to determine the proportion of the influence of independent variables on the dependent variable as a whole, it can be determined by the coefficient of determination with Adjusted R Square (R2) for multiple linear regression analysis, and R Square (R) for simple linear. The results of the multiple determination coefficients show the percentage of the proportion of the influence of brand awareness, brand association, perceived quality and brand loyalty on consumer satisfaction by 0.742 or 74.2% and the remaining 25.8% is influenced by other variables not included in the model. While the results of the coefficient of determination are simple, showing the percentage of the proportion of the influence of brand equity on consumer satisfaction of 0.871 or 87.1% and the remaining 12.9% is influenced by other variables not included in the model. Other variables that are not included in the model are other variables that also affect consumer satisfaction but are not included in the study. 5. DISCUSSION The coefficient test results from multiple linear regression analysis, shows that brand equity which consists of brand awareness, brand association, perceived quality and brand loyalty have a significant effect on the satisfaction of restaurant consumers with a positive direction and moderate and strong tendency level. Based on the results of these tests, it can be concluded that the hypothesis which states, “there is the influence of brand awareness, brand association, perceived quality and brand loyalty on restaurant customer satisfaction” is accepted. This indicates that if brand equity which consists of brand awareness, brand association, perceived quality and brand loyalty has a positive value, it will have an influence in increasing restaurant customer satisfaction. Consumers have felt that a brand awareness of the recognition in knowing a brand is very good, in other words that the introduction of consumers to the product brand, the introduction of consumers to the brand and logo, and restaurants are the main choices in determining their purchases, so that consumers of restaurants have can feel the existence of a recall or recall that can provide clarity in forming part or category of brand products offered so that the ability of consumers in recognizing or remembering has been achieved well and continuously. When consumers realize that the product brand that they have felt has a good performance, of course consumers will realize that the brand’s big name will also provide expectations that are in line with their wants and needs in enjoying services and products in the restaurant. Consumers have felt the image of a brand that is related to the benefits and product attributes of the brand associations in the restaurant is good, in other words that there is a strategic location and low prices for drinks and food as well as a variety of food and beverage menus. Product attributes can provide rational benefits so that consumers can select an attribute that can create an alternative choice in the buying process that provides a benefit to consumers, so that the existence of these benefits can provide or create satisfaction in restaurant customers. Consumers have felt the superiority of the perceived quality of the restaurant is very good, in other words that there is a quality product, the appearance of the menu is presented interestingly, and the taste of the food meets the pleasure that makes the appetite is a context in creating a quality product match in the restaurant, so that with good product quality will create compatibility with the interests and needs of the customers. Consumers have felt an interest in the brand or attributes that form the image of the restaurant is good, in other words that the feeling of love for the product offered, the process of repurchasing, and ever or frequently making recommendations to the restaurant brand is a sense of customer closeness or loyalty towards restaurants, so that with a sense of consumer interest created by the performance of existing services will create a hope that will give satisfaction to its customers. Brand awareness in brand equity has formed an alternative in making a purchase because the customer has been satisfied with whatever is provided in the service so that customers will tend to remember more about the place or location that they think has a good thing to visit as the place or location of the selection. committed to using the brand in each selection of the same product type. Perception of quality in brand equity has been able to shape the satisfaction in the customer and the reasons for buying customers so that the quality or superiority of the product provider can be taken into consideration in influencing the next customer purchase. Brand associations in brand equity have been able to form expectations that are in line with the wishes and needs of their customers regarding the differences in a brand and information and images that form memories in the minds of customers so that it will become a memory in forming an appropriate selection in prioritizing a purchase that will come when a customer will choose various types of providers of products and services that can relatively be considered the same. Brand loyalty in brand equity has been able to form a habit that will create a belief in the customer in buying and using a product brand that is needed so that it will be a real action of a customer in prioritizing his purchase or the customer has felt that the purchase is right because of expectations the customer has been fulfilled very well. 6. 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