Printer Friendly

Analysis of the image of traditional market toward consumers loyalty (a case study in Badung Traditional Market in Bali, Indonesia).

ABSTRACT

The aim of this study is to investigate the effect of traditional market image and the most dominantly affecting dimensional factor toward consumers loyalty in Badung Traditional Market. The type of study used was a survey with accidental sampling method with a total of 100 respondents. The type of data was primary data using questionnaire as data collecting method. Analysis methods used were factor analysis and doubled regression analysis. The study instrumental test results showed that all factors are valid and reliable. Doubled regression test showed that image dimension of Badung Traditional Market have positive effect toward consumers loyalty as seen from variables of price, service, quality, physical environment, location, and goods variety. The most dominant image variables that affect the loyalty are location followed by service. The result of F-test shown there are influenced together between variable with F-test = 9,555 and sig. 0,000. Adjusted R square obtained equal to 0.340 this is indicate that ability of all variables used in this study in explaining variance in consumers loyalty is 34.10%, while the rest of 65.90% is affected by outside variables that are not included in this study. The result of t test showed that service and market location partially affect the consumers loyalty. This study implied that marketers should pay more attention in services and market locations to improve customers loyalty

KEY WORDS

price, service, quality, physical environment, location, goods variety, traditional market, customers

INTRODUCTION

Nowadays the traditional market shifted its presence with the massive competition from the emergence of modern retail business. The existence of a retail business, or commonly referred to as retailers, has been increasingly noticeable in people's everyday lives. A wide variety of retail shopping centers have sprung up in various shapes and dimensions.

In order to survive and thrive in the business world which is full of competition for customers, traditional markets should be able to understand customers thoroughly, because the customer is the target market for a product. The admissibility of a product depends on customer perceptions of the product. If customers feel the product can meet the needs and desires, they will purchase such products.

There are several factors that can influence people to shop in the traditional markets, moreover they are very loyal. (4,2).

2. Objectives:

The object of this study is Badung Market. The purpose of this study is to investigate the influence of the traditional market's image dimensions and other dimension which is most dominant to influence toward customer loyalty in Badung

MATERIALS AND METHODS

This method of this study is a survey with a sampling technique using accidental sampling technique. The sample in this study amounted to 100 people. The type of data is primary data, using questionnaires as the method of data collection. The analysis technique used is factor analysis and multiple linear regression analysis.

RESULTS AND DISCUSSION

The test results showed that all the instruments are valid and reliable. The demographic characteristic of the samples are showed in Table 1. Multiple linear regression test showed Y = -5.933E-7 + 0.132X1 + 0.0259X2 + 0.119X3 + 0.008X4 + 0.211X5 + 0.138X6 + ei. This shows that the image dimension of Badung Market as seen from the price, service, quality, physical environment, location and diversity of goods variables give a positive effect on customer loyalty. F test results indicated that there is a collective influence between the variables together with F count = 9.555 and sig. 0,000. Coefficient determination test results or Adjusted R Square obtained at 0.341. This shows that the ability of the price, service, quality, physical environment, location and diversity of goods variables in explaining variations in customer loyalty by 34.10%, while the remaining 65.90% influenced by external variables that are not included in this study. T test results showed that the variables of service and market locations partially influence the customer loyalty. Image dimension variable that influences customer loyalty the most is location variable and followed by service variable. The results of this study have implication for marketers which is to pay more attention to the service and the location of the market, so they may increase customer loyalty.

Conclusions:

The image dimension of Badung Market which consists of price, service, quality, physical environment, location and diversity of goods variables collectively give a positive effect on customer loyalty. The variables of service and market locations partially influence the customer loyalty. Image dimension variable that influences customer loyalty the most is location variable. The market manager is expected to improve location role through revamping parking location and arrangement of merchants as well as service to customers, so that customer loyalty to the traditional market will increase. Continued research is highly recommended since there are many variables outside of research that may affect customer loyalty, and increasing the number of samples drawn only from Badung Market as they are not representing all groups of traditional market's customers.

ACKNOWLEDGMENTS

The author would like to thank the Rector of Udayana University for the opportunity and the funding provided in this research activity through contract SK Number: 1139/UN14.1.23/PL/2015. The author also would like to thank Director of PD Pasar for the permission and data facilities provided for this study.

REFERENCES

Engel, James, F., R.D. Blackwell and P.W. Miniard, 1995. Customer Behavior. International Edition. USA. The Dryden Press Harcout Brace College Publishers.

Iswari, Riana and Retno Tanding Suryandari, 2003. Analisis Pengaruh Citra Supermarket terhadap Loyalitas Konsumen. Jurnal Bisnis dan Manajemen, 3(2). Universitas Sebelas Maret, Surakarta.

Philip. Alih Bahasa: Benyamin Molan, 2005. Manajemen Pemasaran. Eleventh Edition Volume 1. PT Intan Sejati Klaten. Jakarta.

Sutisna, 2003. Perilaku Konsumen and Komunikasi Pemasaran. PT. Remaja Rosdakarya. Bandung.

I N G Ustriyana, I K Rantau, I A Listia Dewi

(1) Study Program of Agribusiness, Faculty of Agriculture, Udayana University

Received 12 May 2016; Accepted 15 July 2016

Copyright [c] 2016 by authors and American-Eurasian Network for Scientific Information.

This work is licensed under the Creative Commons Attribution International License (CC BY).

http://creativecommons.org/licenses/by/4.0/

Address For Correspondence:

Nyoman Gede Ustriyana., Department of Agribusiness, Faculty of Agriculture. Udayana University, Kampus Bukit Jimbaran, Bali, Indonesia.

Phone (+620361223544); E-mail: gede ustriyana@unud.ac.id
Table 1: Demographic Characteristics of the Samples

                                   Profile

Gender                             Male
                                   Famale
Age                                < 20
                                     20-30
                                     31-35
                                     36-40
                                     41-45
                                   > 45
Educations                         Not completed primary school
                                   Primary school
                                   Junior high school
                                   High school
                                   Diploma
                                   Undergreduated
                                   Postgreduatted
Incomes                            Do not have an income
                                            < Rp 1,000,000
                                   Rp 1,000,001- Rp 2,000,000
                                   Rp 2,000,001- Rp 3,000,000
                                   Rp 3,000,001- Rp 4,000,000
                                   Rp 4,000,001- Rp 5,000,000
Visit to the markets               First time
                                   Repeatedly
Reason for a visit to the markets  Information friends
                                   Drove to the market
                                   Own desire

                                   Frequency

Gender                             38
                                   62
Age                                11
                                   22
                                    5
                                   15
                                    8
                                   39
Educations                          2
                                    7
                                    8
                                   42
                                   12
                                   26
                                    3
Incomes                            17
                                   15
                                   21
                                   26
                                   11
                                   10
Visit to the markets                7
                                   93
Reason for a visit to the markets   9
                                   23
                                   68
COPYRIGHT 2016 American-Eurasian Network for Scientific Information
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2016 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Author:Ustriyana, ING; Rantau, IK; Dewi, IA Listia
Publication:American-Eurasian Journal of Sustainable Agriculture
Article Type:Case study
Geographic Code:9INDO
Date:Jul 1, 2016
Words:1180
Previous Article:Development model of goat farming business base on productive economy in Majene regency, West Sulawesi, Indonesia.
Next Article:Prediction algorithm for renal system damage on human health by eating food with pesticide residues.
Topics:

Terms of use | Privacy policy | Copyright © 2018 Farlex, Inc. | Feedback | For webmasters