Consumer Behavior in the Dimensions of Marketing Mix and Service Quality: Predicting Predictor and Response Variables

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Published on International Journal of Economics & Business
ISSN: 2717-3151, Volume 1, Issue 1, page 121 – 127
Publication Date: 20 September 2018

Lingga Kencana
Faculty Economics & Business, University of Jember
Jember, Indonesia

Journal Full Text PDF: Consumer Behavior in the Dimensions of Marketing Mix and Service Quality: Predicting Predictor and Response Variables.

This research aims to determine, analyze and predict the dimensions of marketing mix and service quality on consumer behavior in the next purchases. The research variables are 1) product (X1); 2) price (X2); 3) location (X3); 4) promotion (X4); 5) physical evidence (X5); 6) reliability (X6); 7) responsiveness (X7); 8) warranty (X8), and; 9) empathy (X9). Research analysis is logistic regression analysis to find influence and relation of response variable with one or more predictor variables and response variable that is continuous or categorical. The finding of research, can be concluded that the dimension of marketing mix can predict consumer behavior in next purchase. The dimension of service quality consisting of physical evidence, reliability, responsiveness, and warranty can predict consumer behavior in next purchases, whereas empathy can not predict consumer behavior in next purchases.

Keywords: Dimension of Marketing Mix, Dimension of Service Quality, Consumer Behavior, Predictions, and Response.

1. Introduction
A company that wants success in influencing consumer responses in a particular market must formulate a combination of marketing strategies appropriately and use marketing techniques that suits for its consumer behavior. One of the key elements in determining a marketing strategy is to know the marketing mix. According to Kotler (2000:18), the service marketing mix consists of 4 elements: product, price, location and promotion and becomes 7 with additional elements such as: process, people and physical evidence. Service marketing mix is a set of marketing tools used by companies to continuously achieve marketing objectives in their target markets.
Cafe business in Jember Regency grow quite rapidly, along with the increasingly crowded population of Jember and the development of education. Jember Regency is one of the educational base that has relatively a lot of State and Private Universities. Growing business in the field of cafe is shown by the proliferation of cafe business in the area of Jember, there are some homogeneous cafe such as Kolong Cafe, Brother Cafe, Acacia Cafe, and Corakna Café. Some of these cafes are similar in terms of its menu and service offering. The more selective consumers in choosing products and services that they will buy and the proliferation of cafe business in Sumbersari District, like a cafe that is considered a homogeneous, will certainly provide a competition in the market. According to Tjiptono (in Subagiyo, 2012:2), tight competition makes entrepreneurs should strive to achieve goals to create and retain customers, because customers are the long-term aspect for the industry. Thus, every industry must be able to understand its consumer behavior in its target market because the viability of the industry as an organization that seeks to meet the needs and desires of consumers depends on it.
Marketing mix and service quality are very important aspects to be considered by every cafe to survive in the market competition, if the application of marketing mix is less attractive and not in accordance with consumer expectation and market condition, then cafe business will lose its market share. Cafe need to evaluate its marketing mix and the service quality in order to attract new customers and retain the old customers. The problem of this research is “Can the dimensions of the marketing mix and service quality predict consumer behavior in the next purchases?”
The purpose of this research is to know, analyze and predict the dimensions of marketing mix and service quality on consumer behavior in the next purchases.

2. Literature Review
The marketing field should be able to optimize the marketing mix element, because the marketing mix is a controlled variable that can be used to reach consumers who are the target market. The marketing mix has 4 important elements; product, price, location, and promotion. Product is a thing that needeed and wanted by consumers to meet their perceived needs (Supranto, 2007:11). The five product levels are (Kotler, 2008:175); main products, generic products, expected products, additional products, and potential products. Price is the money a person pays for the right to use the product (Supranto, 2007:12). Pricing procedures to be used here include six stages; estimate the demand for goods, know firstly the reaction in the competition, determine the expected market share, choose a pricing strategy to reach the target market, consider the marketing politics of the company, and choose a certain price. Place is a combination of location and distribution channel, which is related to the way delivery of products and services through strategic location (Lupiyoadi, 2001:61). Promotions are a collection of different intensive tips, mostly short-term and designed to encourage faster or larger purchases of a particular products or services by the consumers. Promotional activities not only serve as a tool of communication between companies and consumers but also as a tool to influence consumers in the purchase or use of service in accordance with the their desires and needs (Lupiyoadi, 2001:108).
Service quality is often regarded as a relative measure of the good of a product or service consisting of design and conformity quality. Design of quality service is a function of product specification, while the conformity of service quality is a measure of how far a product is able to meet the requirements or quality specifications that have been set. According to Zeithaml (in Tjiptono, 2004:14) the service quality includes five dimensions. Physical evidence, related to physical facilities, employee performance, equipment and technology used in providing services. Reliability is the ability to deliver the promised service performance accurately and definitely. Responsiveness is the ability of employees to help and provide services to the customers responsively. Warranty relate to employees’ ability to instill trust in customers, and the employee’s knowledge and manners in providing services to consumers, knowledge, courtesy and employee ability will generate trust and confidence in the company. Empathy is the ease of doing relationships, good communication, personal attention and understanding of customer needs. This relates to the attention or concern of employees to customers.
Consumer behavior is defined as the study of unit purchases and exchange processes involving the acquisition, consumption, and disposal of services, experiences, and ideas (Mowen, 2002:6). Consumer behavior is an action directly involved in obtaining, using (consuming and consuming) and depleting products (goods and services) including processes that precede and follow these actions (Supranto, 2007:4). Understanding the consumer behavior requires a model that can clarify how a sufficiently influential purchasing process, where this model emphasizes processes that affect consumer behavior.
Purchasing decisions are a fundamental part of consumer behavior that leads to the purchase of products or services. There are five stages in the purchase decision; 1) introduction of needs; 2) search of information; 3) alternative evaluation; 4) purchase decision, and; 5) post-purchase behavior (Kotler, 2008:179).
Marketing mix as a process that will provide various benefits and value for the producers who will support its business strategy and provide the desire in accordance with the needs of consumers. Service quality will greatly enhance the effort and give real support to consumers’s desires.

3. Research Method
The research design used can be classified as explanatory research, that is research which explain the relationship between variables through hypothesis testing with explanatory research (Tjiptono, 2004:56).
Population is an object that the researcher wants to know the magnitude of its characteristics (Sugiono, 2008:129). The population in this research are all customers of Kolong cafe, Brother cafe, Acacia cafe, and Corakna cafe.
Sampling method using multistage sampling method. The first stage uses purposive sampling. Purposive sampling is to select the sample that has certain considerations and characteristics in the desired amount (Sugiyono, 2008:130). The second stage uses proportional random sampling, is random sampling with the number of samples proportional to the number of members in each subpopulation (proportional) so that each sub-population has the same opportunity to be sampled. Proportional random sampling is done randomly to all customers of four selected cafes, but still in accordance with the criteria in purposive sampling (Arikunto, 2002:112).
Determination of the number of samples in this research refers to Ferdinand (2002:51), which suggests that the sample size depends on the number of indicators used are a number of latent variables. The number of samples is equal to the number of indicators multiplied by 5 to 10. The number of indicators in this research are 20 indicators. So based on the recommendation calculations, then the number of samples in this research is 100 respondents. The number of 100 respondents is distributed based on the sample calculations of each group according to the number of visits received by each café. Kolong café is 37 respondents, Brother Cafe is 28 respondents, Acacia Cafe is 23 respondents, and Corakna Café is 12 respondents.
The variables analyzed in this research are; dimension of marketing mix, such as; 1) product (X1); 2) price (X2); 3) location (X3), and; 4) promotion (X4). Dimension of service quality, such as; 1) physical evidence (X5); 2) reliability (X6); 3) responsiveness (X7); 4) warranty (X8), and; 5) empathy (X9).
Measurement of data by using Likert scale. The rating scale used are strongly agree with the value 5; agree with value 4; quite agree with value 3; disagree with value 2, and; strongly disagree with value 1 (Malhotra, 2003:62). In addition to Likert scale, this research also uses the dichotomy scale to obtain the answers “frequently buy” with the value of 1 and “rarely buy” with the value 0 (Sekaran, 2006: 31). Criteria of “frequently buy”, that is a positive attitude shown from the frequency of purchases made by a consumers, while the criteria of “rarely buy”, is a lack of positive attitude shown from the frequency of purchases made by a consumers.
Logistic regression is an analytical tool to predict the ability of predictor and response variables that will serve as the predictive information using dichotomous data (nominal or ordinal scale with two sustainable and categorical categories). According to Homster (in Subagiyo, 2012:35), logistic regression (logit) is part of a statistical model called the Generalized Linear Model (GLM) that produces a predictive equation. The logit allows for the prediction of discrete results that are largely dichotomized as dependent variables with various types of independent variables such as continuous, discrete, dichotomous taking two or more possible values. Logit becomes an alternative choice of statistical tools to solve the problem of dichotomous variables rather than grouping factors. Logistic regression equation;