The Impact of Service Quality Towards Customer Satisfaction of Restaurant

THE IMPACT OF SERVICE QUALITY TOWARDS CUSTOMER SATISFACTION OF RESTAURANT

(A STUDY CASE OF KARTINI RESTAURANT IN CIKARANG)

Raden Surya Kencana

014201200143

A Skripsi presented to the Faculty of Business President University in partial fulfillment of the requirements for Bachelor Degree in Economics Major in Management

April 2016

PANEL OF EXAMINERS

APPROVAL SHEET

The Panel of Examiners declare that the skripsi entitled “The Impact of Service Quality towards Customer Satisfaction of Restaurant (A Study Case of Kartini Restaurant in Cikarang)” that was submitted by Raden Surya Kencana majoring Marketing Management from the Faculty of Business was assessed and approved to have passed Oral Examinations on April 14th 2016.

Dr.Dra. Genoveva Claudia, MM

Chair-Panel of Examiners

Vinsensius Jajat K., SE., MM., MBA Examiner I

Jhanghiz Syahrivar B.Sc, MM Examiner II

SKRIPSI ADVISOR RECOMMENDATION LETTER

This skripsi entitled “THE IMPACT OF SERVICE QUALITY TOWARDS CUSTOMER SATISFACTION OF RETAURANT (A Study Case of Kartini Restaurant in Cikarang)” prepared and submitted by Raden Surya Kencana in partial fulfillment of the requirements of the degree of Bachelor in the Faculty of Business has been reviewed and found to have satisfied the requirements for a skripsi fit to be examined. I therefore, recommend this skripsi for Oral Defense.

Cikarang, Indonesia April 11th 2015

Acknowledged by, Recommended by,

Vinsensius Jajat K., SE., MM., MBA Jhanghiz Syahrivar B.Sc, MM

Head of Management Study Program Skripsi Advisor

DECLARATION OF ORIGINALITY

I declare that this skripsi, entitled “THE IMPACT OF SERVICE QUALITY TOWARDS CUSTOMER SATISFACTION OF RESTAURANT (A Study Case of Kartini Restaurant in Cikarang)” is, to the best of my knowledge and belief, an original piece of work that has not been submitted, either in whole or in part, to another university to obtain a degree.

Cikarang, Indonesia, April 11th 2016

Raden Surya Kencana

iii

ABSTRACT

There are so many ways to make customer satisfied. When the perceived service performance exceed customer satisfaction it’s called customer satisfaction. There are many drivers of customer satisfaction such as service quality. This research observed about the impact of customer satisfaction towards customer satisfaction: a study case of Kartini Restaurant in Cikarang. The purpose of this research is to understand the impact of service quality towards customer satisfaction. This is quantitative research and used primary data through questionnaire of 180 respondents. The respondents were people who have dine in Kartini Restaruant. The data of this research is analyzed by Statistical Product and Service Solution (SPSS) Version 16.0 and used binomial logistic regression in answer the hypothesis. The result of this research has been shown that all variable of service quality (tangibility, reliability, responsiveness, empathy, and assurance) has partial significant impact towards customer satisfaction, and also there is simultaneous significant impact of service quality towards customer satisfaction. Keyword: Service Quality, Tangibility, Reliability, Responsiveness, Empathy, Assurance, and Customer Satisfaction.

ACKNOWLEDGEMENT

The greatest gratitude dedicated for ALLAH SWT for His Guidance researcher could finish this thesis as requirement to obtain my bachelor degree. Researcher does believe Allah will never let me experience the hesitation and desperation to always jihad in His Way by making this thesis. Therefore, researcher has learned to always believe on his own competence and do the best because Allah will always guide him with His Way through this thesis. Researcher does believe, He will guide him anywhere, anytime and in anything he is going to do in the future.

Researcher would like to thank Vinsensius Jajat K., SE., MM., MBA as Head of Management Study Program in President University. Researcher will be nothing without his great leadership and motivation which teach and lead researcher until this point, finishing this thesis.

Researcher also would like to give his greatest gratitude to Allah’s guidance representative, Jhanghiz Syahrivar BSc, MM. Researcher really felt blessed with his time, advice, and his powerful motivation to think critically in guiding the researcher finished this thesis.

He would like to thank to all management lectures in management study program who already taught very valuable knowledge during researcher’s university’s life. Their knowledge are really useful and meaningful in helping researcher made this thesis.

Researcher also would like to thank Mba Dara for her valuable assistance on researcher’ administration matters during this time, especially when researcher thesis making process.

He also addressed his gratitude to his Emak, Bapa, all of my brothers and sisters, also of my big family. He could not finish this thesis without their supports, advices, jokes, laughs, smiles, and their best motivations ever. Moreover, my friends in RM & Pemancingan Surya Kencana.

He would like to thank his friends who has spent an amazing campus life with him, Randy Ardianto B.Sc, Andi Muhammad Ichlas B.Sc, Devara Naldo B.Sc, Yoga Oktaviananda P. B.Sc, Mochammad Choiruddin B.Sc, Fiqhi Kurniawan B.Sc, Ildha Mawarni B.Sc, Scherzo Wahid Naiborhu Bsc, Bhirawa Pradipta Bagaskara B.Sc, M. Raynova Ramadhan B.Sc, Abdul Khaer B.Sc, Inggrid Widya Pitaloka B.Sc, and Jacquline. My friends who have given me freshman experience that I really wanted to happen again, Adam Maulana Akbar B.Acc, Muhammad Ridwan B.Sc.

He would like to thank his partner in life Pangeran Ratu Sririzki Kusumaningrum for her time, great motivation and pressure in order to finish this thesis.

Last but not least, he would like to address his appreciation and gratefulness to all Kartini Restaurant employees and its customers who involved in this thesis especially Mr. Aip Jamil B.Sc, his heartwarming, kindness, time, understanding, availability, help and support in the making process until the end of this thesis.

Cikarang, April 11th, 2016

Raden Surya Kencana

TABLE OF CONTENTS

COVER

PANEL OF EXAMINERS ...... i

APPROVAL SHEET ...... i

SKRIPSI ADVISOR ...... ii

RECOMMENDATION LETTER ...... ii

DECLARATION OF ORIGINALITY ...... iii

ABSTRACT ...... iv

ACKNOWLEDGEMENT ...... v

TABLE OF CONTENTS ...... vii

LIST OF FIGURES ...... xi

CHAPTER I ...... 1

INTRODUCTION ...... 1

1.1 Background of the Study ...... 1

1.2 Problem Identification ...... 4

1.3 Statement of the Problem ...... 4

1.4 Research Objectives ...... 5

1.5 Significance of the Study ...... 5

1.5.1 Benefit for President University ...... 5

1.5.2 Benefit for Kartini Restaurant...... 6

1.5.3 Benefit for the Researcher ...... 6

1.5.4 Benefit for the Future Researcher ...... 6

1.6 Scope and Limitation ...... 6

1.6.1 Scope of Study ...... 6

1.6.2 Limitation of Study ...... 7

1.7 Definition of Terms ...... 7

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CHAPTER II ...... 8

LITERATURE REVIEW...... 8

2.1 Theoritical Review ...... 8

2.1.1. Service ...... 8

2.1.2 Quality ...... 9

2.1.3 Service Quality ...... 9

2.1.4 Customer Satisfaction ...... 14

2.1.5 Relationship between Service Quality toward Customer Satisfaction . 15

2.2 Previous Research ...... 17

2.3 Operational Definition ...... 19

2.4 Theoritical Framework ...... 27

2.5 Hypothesis ...... 27

CHAPTER III ...... 29

RESEARCH METHODOLOGY ...... 29

3.1 Research Methodology ...... 29

3.1.1 Quantitative Method ...... 29

3.1.2 Research Design ...... 30

3.2 Research Instrument ...... 30

3.2.1 Data Analysis ...... 34

3.3 Sampling Design ...... 34

3.3. 1 Population ...... 35

3.3.2 Sample ...... 35

3.4 Validity and Reliability ...... 36

3.4.1 Validity ...... 36

3.4.2 Reliability ...... 36

3.5 Data Collection ...... 37

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3.5.1 Correlation and Multicollinearity ...... 38

3.5.2 Primary Data ...... 39

3.5.3 Secondary Data ...... 39

3.6 Testing the hypothesis ...... 40

3.6.1 Binomial Logistic Regression ...... 40

3.6.2 Latent Variable ...... 42

CHAPTER 4 ...... 44

DATA RESULT AND ANALYSIS ...... 44

4.1 Company Profile ...... 44

4.2 Data Result Analysis ...... 45

4.2.1 Pilot Test ...... 45

4.2.1.1 Validity Test ...... 45

4.2.1.2 Reliability Test ...... 46

4.3 Descriptive Analysis ...... 47

4.3.1 Respondent Profile ...... 47

4.3.2 Result of Respondent Response ...... 51

4.4 Correlation and Multicolinearity Analysis ...... 66

4.4.1 Correlation ...... 66

4.4.2 Multicollinearity ...... 67

4.5 Binomial Logistic Regression ...... 67

4.5.1 Output Overall Percentage ...... 67

4.5.2 Psudo R Square ...... 69

4.5.3 Omnibus Test (Simultaneous Test)...... 69

4.5.4 Partial Test ...... 70

4.6 Interpretation Result ...... 71

4.6.1 Tangibility towards Customer Satisfaction of Kartini Restaurant in Cikarang ...... 71

4.6.2 Reliability towards Customer Satisfaction of Kartini Restaurant in Cikarang ...... 72

4.6.3 Responsiveness towards Customer Satisfaction of Kartini Restaurant in Cikarang ...... 72

4.6.4 Empathy towards Customer Satisfaction of Kartini Restaurant in Cikarang ...... 72

4.6.5 Assurance towards Customer Satisfaction of Kartini Restaurant in Cikarang ...... 72

CHAPTER V ...... 73

CONCLUSION AND RECOMMENDATION ...... 73

5.1 Conclusion ...... 73

5.2 Recommendation ...... 74

5.2.1 For Kartini Restaurant ...... 74

5.2.2 For the Future Researcher ...... 74

REFERENCES ...... 75

APPENDICES ...... 80

LIST OF FIGURES

Figure 1. 1 Sales of Kartini Restaurant in Percentages ...... 2

Figure 2. 1 Theoritical Framework ...... 27

Figure 3. 2 Research Framework ...... 37

Figure 4. 1 Respondent Profiles: Gender ...... 47 Figure 4. 2 Respondent Profile: Age ...... 48 Figure 4. 3 Income ...... 48 Figure 4. 4 Respondent Profile: Education ...... 49 Figure 4. 5 Respondent Profile: Education ...... 50 Figure 4. 6 Respondent Profile: Knowing Kartini Restaurant Information ...... 50 Figure 4. 7 Tangibility Statement 1 ...... 51 Figure 4. 8 Tangibility Statement 2 ...... 52 Figure 4. 9 Tangibility Statement 3 ...... 52 Figure 4. 10 Tangibility Statement 4 ...... 53 Figure 4. 11 Tangibility Statement 5 ...... 53 Figure 4. 12 Reliability Statement 1 ...... 54 Figure 4. 13 Reliability Statement 2 ...... 54 Figure 4. 14 Reliability Statement 3 ...... 55 Figure 4. 15 Reliability Statement 4 ...... 55 Figure 4. 16 Reliability Statement 5 ...... 56 Figure 4. 17 Responsiveness Statement 1 ...... 56 Figure 4. 18 Responsiveness Statement 2 ...... 57 Figure 4. 19 Responsiveness Statement 3 ...... 57 Figure 4. 20 Responsiveness Statement 4 ...... 58 Figure 4. 21 Responsiveness Statement 5 ...... 58 Figure 4. 22 Empathy Statement 1 ...... 59 Figure 4. 23 Empathy Statement 2 ...... 59 Figure 4. 24 Empathy Statement 3 ...... 60 Figure 4. 25 Empathy Statement 4 ...... 60 Figure 4. 26 Empathy Statement 5 ...... 61

Figure 4. 27 Assurance Statement 1...... 61 Figure 4. 28 Assurance Statement 2...... 62 Figure 4. 29 Assurance Statement 3...... 62 Figure 4. 30 Assurance Statement 4...... 63 Figure 4. 31 Customer Satisfaction Statement 1 ...... 63 Figure 4. 32 Customer Satisfaction Statement 2 ...... 64 Figure 4. 33 Customer Satisfaction Statement 3 ...... 64 Figure 4. 34 Customer Satisfaction Statement 4 ...... 65 Figure 4. 35 Customer Satisfaction Statement 5 ...... 65

xii

LIST OF TABLES

Table 1. 1 Sales of Kartini Restaurant in Percentages …………………………... 2

Table 2. 1 Previous Research ...... 17 Table 2. 2 Operational Definition ...... 19

Table 3. 1 Advantage of Different Questionnaire ...... 31 Table 3. 2 Likert Scale ...... 33 Table 3. 3 Format likert scale in questionnaire ...... 33

Table 4. 1 Validity Test ...... 45 Table 4. 2 Reliability Statistics ...... 47 Table 4. 3 Spearman’s Rank Order Correlation ...... 66 Table 4. 4 Classiification Table Steps 0 ...... 67 Table 4. 5 Classification Table Adding 1 Independent Variable ...... 68 Table 4. 6 Classification Table Adding All Independent Variable ...... 68 Table 4. 7 Psudo R Square ...... 69 Table 4. 8 Omnibus Test ...... 69 Table 4. 9 Variables In The Equation ...... 70

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CHAPTER I

INTRODUCTION

1.1 Background of the Study

Restaurant is a business that includes the type of foodstuff service located in part or all permanent buildings that sell and serve food and beverages for customers, either with or without tools to process manufacture and storage and obtained a decree as a restaurant from related agencies. (Statistik, 2015)

Nowadays, there is a trend-changing which more and more Indonesian prefers eating in restaurant. In 2013, the number of Indonesian visited restaurant even was about 380 million times and cost about USD 1,5 billion. Lively, this dine behavior was supported by the growth of middle up restaurant up to 250 percent in the five years behind (tribunnews.com, 2014).

Bekasi is one of supporting regency for Capital City of Indonesia, Jakarta. According to BPS (Badan Pusat Statistik), in 2014 the population of Bekasi Regency increasing 120.586 people. The increasing in 2014 makes the total population become 3.112.698 person (klikbekasi, 2015). That number of population indicates a big opportunity for restaurant to develop in Bekasi Regency.

Kartini Restaurant was established in 1998, located in Cikarang, Bekasi, serving Indonesian Family’s Food with the traditional recipe from generation to generation. Kartini Restaurant make a dining room as lesehan in saung. For nearly two decades, Kartini Restaurant serve hundreds of family favorite food menu. Nowadays, Kartini Restaurant provide space for more than 2000 person (Katiniresto, 2014). But, in the four months behind, Kartini Restaurant has recorded the declining of sales. Look at Table 1.1 and Figure 1.1.

Sales of Kartini Restaurant in Percentages 25%

20%

15%

10%

0% September October November December January February

Figure 1. 1 Sales of Kartini Restaurant in Percentages

Source: Kartini Restaurant

Percentage of Sales Growth MONTHS Sales (in Percentage)

September 17,78% -

October 16,80% -0,98%

November 19,32% 2,52%

December 18,20% -1,12%

January 15,30% -2,90%

February 12,60% -2,70%

Table 1. 1 Sales of Kartini Restaurant in Percentages

Source: Kartini Restaurant The Table 1.1 and Figure 1.1 show the monthly percentage sales of Kartini Restaurant. From October to November 2015 the number of sales was increasing. But started from November 2015 to February 2016 the number of sales was decrease from 19,32% to 12,60% of sales which means

Kartini Restaurant growth has decreased by 6,72% in three month behind. The restaurant industry has evolved over the past few decades from merely a meals providing facility to an augmented combination of service associated features. This notion of satisfaction is mainly attributing to the quality of service. A lot of theories and models have been established in this regard. Shaikh and Khan (2011) stated that the servqual term was used widely to measure the service quality in any industry of service including restaurants.

Several studies have been conducted to analyze the degree of impact of Servqual dimensions on the customer satisfaction, for example Impact of Service Quality Dimensions towards Customer Satisfaction in India produced Agarwal and et al (2013). According to Agarwal (2013) servqual have five dimensions. Servqual scale operationalizes quality of service by finding out the difference between customer expectation and customer perception, in relation to the 22 items that represent the five dimensions of service quality tangibles, reliability, responsiveness, empathy and assurance.

This research is conducted because there is a particular problem that the visitor of Kartini Restaurant decreases from November 2015 to February 2016 as shown in the Table 1.1 and Figure 1.1. Since the Kartini Restaurant’s number of sales in the last three months decreased, researcher wondered whether service quality (Tangibility, Reliability, Responsiveness, Empathy and Assurance) could impact customer satisfaction of Kartini Restaurant or not. In accordance with Agarwal et al (2013) factor that impact customer satisfaction are tangibility, reliability, responsiveness, empathy and assurance. Therefore, the researcher conducts the research by the title of “The Impact of Service Quality towards Customer Satisfaction in Restaurant (A Case Study of Kartini Restaurant in Cikarang)”.

1.2 Problem Identification

As shown on figure 1.1, problem indicates that total of sales in Kartini Restaurant decreased. from December 2015 to February 2016, on the sales growth can reach 2,5%, but as time goes by from November 2015 to February 2016, the number of sales growthe was decreasing by 6,72%. One of factor cause decreasing in number of sales due service quality. The main problem that researcher want to discuss is the service quality that relates to topic of dependent variable, Customer Satisfaction. Decreasing number of visior has a role as precursor problem. Kartini Restaurant should maintain their service quality and come up with the most significant approaches to make customer become satisfied and it will lead to increasing sales growth. This research attempts the impact of service quality toward customer satisfaction in restaurant.

1.3 Statement of the Problem

The problem Statement of this research will be shown in form of question as stated below:

1. Does tangibility has partially significant impact on Service Quality of Kartini Restaurant? 2. Does reliability has partially significant impact on Kartini Restaurant? 3. Does responsiveness has partially significant influence impact on Kartini Restaurant? 4. Does empathy has partially significant influence impact on Kartini Restaurant? 5. Does assurance has partially significant influence impact on Kartini Restaurant? 6. Does tangibility, realiability, responsiveness, empathy dan assurance simultaneously has significant impact on Kartini Restaurant?

1.4 Research Objectives

This research will analyze whether service quality charcteristics such as tangibility, reliability, responsiveness, empathy and assurance has significant impact toward customer satisfaction in restaurant industry: a survey of Kartini Restaurant, Cikarang. Specific objectives of this research will be listed below:

1. To determine whether tangibility has partially significant impact on Kartini Restaurant. 2. To determine whether reliability has partially significant impact on Kartini Restaurant. 3. To determine whether responsiveness has partially significant impact on Kartini Restaurant. 4. To determine whether empathy has partially significant impact on Kartini Restaurant. 5. To determine whether assurance has partially significant impact on Kartini Restaurant. 6. To determine whether tangibility, reliability, responsiveness, empathy and assurance simultaneously have significant impact on Kartini Restaurant.

1.5 Significance of the Study

This research expected to have some advantages, the advantages are started below:

1.5.1 Benefit for President University Hopefully this study will help for education needs of customer that are looking for theory about tangibility, reliability, responsiveness, empathy, assurance and service quality in restaurant industry.

1.5.2 Benefit for Kartini Restaurant The findings of this particular research would be beneficial for Kartini Restaurant in understanding about drivers of customer satisfaction such as tangibility, reliability, responsiveness, empathy and assurance.

1.5.3 Benefit for the Researcher This research enriches the knowledge of the researcher and it will make the researcher understand clearly and deeply about the relationship between tangibility, reliability, responsiveness, empathy and assurance toward customer satisfaction in Cikarang. This research also to fulfill of the requirements for the graduation from President University in Management major and to recall all the knowledge about marketing for the last three years in President University.

1.5.4 Benefit for the Future Researcher This study is conducted with the expectation that it will be useful for future researcher. Hopefully it can be a reference for the future researcher that conducts the similar research.

1.6 Scope and Limitation

In doing this research, researcher has scope and limitation, where the usage of scope is to make sure the data that are collected is as what researcher need while the limitation occurs because the researcher capability.

1.6.1 Scope of Study This study is conducted to The Impact of Service Quality towards Customer Satisfaction in Restaurant (A Case Study of Kartini Restaurant in Cikarang). The independent variables consist of tangibility, reliability, responsiveness, empathy, and assurance. Dependent variable is customer satisfaction.

1.6.2 Limitation of Study The limitation of this study is female and male who are dine in Kartini Restaurant, Cikarang for the year of 2016. The primary data was collected by questionnaires which had been distributed to 180 respondents as the visitor of Kartini Restaurant.

1.7 Definition of Terms

1. Service Quality Service quality is a multi-dimensional construct commonly regarded as customer judgments about service supplier and customer interactions and service itself (Ivanauskiene & Volungenaite, 2014). 2. Tangibility Physical aspects of the service such as physical facilities, appearance of personnel, tools or equipment that is used to provide the service, physical representations or other customers in the service facility (Carlsson, 2010). 3. Reliability The firm’s ability to deliver a promised service dependably and accurately (V. Naidoo, 2014). 4. Responsiveness Responsiveness defined as the willingness or readiness of employees to provide service. It involves timeliness of services (Niveen El Saghier, 2013). 5. Empathy Empathy defined as the caring and individual attention the firm provides its customers (Niveen El Saghier, 2013). 6. Assurance Assurance defined as knowledge and courtesy of employees and their ability to inspire trust and confidence (Niveen El Saghier, 2013). 7. Customer Satisfaction Customer satisfaction is the customer’s feeling that a product/service has met or exceeded his/her expectations (Olajide, 2011).

CHAPTER II

LITERATURE REVIEW

2.1 Theoretical Review

2.1.1. Service According to Gronroos (2008) service is an activity or series of activity that are invisible (intangible) that occurred as a result of the interaction between the consumer and the employee or other things provided by the service company intended to solve the problem of the consumers/customers. 2.1.1.1. Types of Services

According to (Dube, Mukono, & David, 2013) there are four types characteristic of service, which are intangibility, heterogeneity, inseparability and perishability. Some writers substitute heterogeneity for inconsistence and perishability for inventorability, and refer to the service characteristics as the “4 Is” of service marketing. These characteristics were described by Armtrong and Kotler (2007) as follows

1. Intangibility: services cannot be seen, tasted, felt, heard, or smelled before purchase. This means that consumers or users of services can hardly have a clue of how or what a service will be like before they actually purchase it. 2. Inseparability: Service is produced and consumed in the same time by the customer or retailers. Services cannot be separated from their providers. The employee who provides a service becomes part of that service.

3. Inconsistence/ heterogeneity/ variability: service quality varies with the individual involved and the mood of the individual on different days or at different times. 4. Inventorability/ perishability: Services cannot be stored for later sale or use, because the consumed service by the customer is simultaneously after the service is produced.

2.1.2 Quality Quality is a dynamic condition related to products, services, people, processes, environments that meet expectation (Risqonadhimi, 2011) The concept of service quality has long been an important indicator in the means to build a competitive and improving organizational performance. Quality of service is something that is perceived by the customer (Tjiptono, 2011). Customers will assess the quality of service that they feel based on what they describe in their minds. The definition of service quality has been defined differently by many researchers.

2.1.3 Service Quality

The Service Quality is a method of service marketing created by Valarie A. Zeithaml, A. Parasuraman, and Leonard L., which stated that, “Service quality is focused on the Evaluation that reflects the customer’s perception of reliability-responsiveness- assurance-empathy-tangibles. On the other, customer satisfaction is more inclusive. It is influenced by perception of service quality, product quality, and price as well as situational factors and personal factors.” (2003:10)

Hartini (2012) stated that service is a process consisting of a series of more or less of intangible activities that occur in interactions

9 between the customer and service employees or physical resources or goods or systems of the service provider, which are provided as solutions to customer problems. Whereas, Quality is conformity between the products (goods or services) to the specifications of customer needs. If the company is doing something that is not in accordance with the customers’ expectations means the company does not provide a good quality.

Service quality can be define as “technical quality” and “functional quality”, where technical quality is concerned with what the outcome of the delivered product or service, which is the end result of service provision. While the functional quality is concerned with how the product or service has been delivered, such as the behavior of customer-contact staff and the speed of service (Leisen Pollack, 2009). Moreover, service quality is the gap between what the customers want and what they actually get or perceive they are getting (Alex & Thomas, 2010). The service will be considered excellent, if perceptions exceed expectations; it will be regarded as good or adequate, if it only equals the expectations; the service will be classed as bad, poor or deficient, if it does not meet them (Girma, 2012)

2.1.3.1 Service Quality Model

Service quality draws attention of many practitioners and researchers. According to (Duy Nhat & Hau, 2007), there was various service quality models proposed and applied in different context which are SERVQUAL and GAP model by Parasuraman et al. (1988), SERVPERF by Cronin and Taylor (1992), Retail Service Quality Model by Dabholkar et al. (1996).

2.1.3.2 SERVQUAL and GAP Model

SERVQUAL and GAP model developed by A. Parasuraman, V.A. Zeithaml, and LL Berry in 1988. It measure quality in the service sector. Initially there are ten criteria or determinants which are access, communication, competence, courtesy, credibility, reliability, responsiveness, security, understanding and tangibles. In later years, Parasuraman et al., found a high degree of correlation between communication, competence, courtesy, credibility and security on one hand between access and understanding. So, they introduced two broad dimension assurance and empathy making a fivefold model (tangibles, reliability, responsiveness, assurance and empathy) which they used as the basis for their service quality measurement tool, SERVQUAL (Hassan, Malik, & Faiz, 2012).

This model indicates that consumer perceptions of quality are influenced by five gaps occurring in the internal process of service delivery (Duy Nhat & Hau, 2007). These gaps are follow:

1. The difference between what customers expected and what management perceived customer expected.

2. The difference between management’s perceptions of customer expectations and the translation of those perceptions into service quality specifications.

3. The difference between actual service quality specifications and the delivery of those specifications to customer service actually delivered.

4. The difference between the services delivered to customers and the external communications about the service.

5. The difference between customer expectations and perceptions.

The concept of measuring level of service quality in terms of expectations and perceptions using SERVQUAL gap score has been proved very useful (Hassan, Malik, & Faiz, 2012) but it has not been proven to be successfully applied in a retail setting (Caro & Garcia, 2007), because it also dependent on suppliers for goods that they sell and an essential part of customer satisfaction comes from the quality of goods sold by the stores (Chernetskaya & Xiao, 2010).

2.1.3.3 Dimension of Service Quality

Subsequent analysis of the ten-dimensional model then led to a five dimensional model which then became known as SERVQUAL. There are five dimension which known as SERVQUAL. The dimensions are (Zeithaml, Bitner, and Dwayne, 2009):

1. Tangibility Physical facilities, equipment, employee appearance, and communication tools that support the provision of service. This dimension illustrate of physical manifestation and services that will be accepted by consumers. Appearance and capabilities of physical infrastructure must be reliable. Therefore, it is important for companies to give a positive impression of the service quality that provided. According to Sitinjak (2004), by considering that the service can’t be seen,

12 kissed, or touched the tangible dimension becomes important as the size of the service. The dimensions is generally more important for the new customers

2. Reliability

The ability to provide the promised service with reliable and accurately. In terms, reliability means that the company gives the promises of provision, problem solving, and price. Reliability can also be interpreted as an ability to provide the promises service with immediate, accurate, and satisfactory, which is the employee provide services that meet with customer expectations. Compared with four other dimensions of quality of service, is considered the most important dimensions of the various service industries. This dimension has two aspects, namely the company's ability to provide services in accordance with the promised and how much the company is able to provide accurate service (Durianto, Sugiarto, & Sitinjak, 2004).

3. Responsiveness

The awareness and a desire to help customers and provide prompt service. This dimension emphasizes the attention and accuracy when dealing with requests, inquiries and customer complaint. Responsiveness can also be interpreted as the desire of employees to help customers respond as indicated by the motivation of the employees in solving the problems faced by customers in using the services. Based on Sitinjak (2004) responsiveness is customer expectations for speed of service that can’t be ascertained will change according from time to time.

4. Empathy

Caring and individualized attention provide to customers. The core of this dimension is demonstrated to customers through services provided that customers are special, and their needs can be understood. According Sitinjak (2004) empathy can be explained by the idea that the customers of the upper middle group had high expectations that the company's service provider customers personally. In addition, empathy also includes the ease of relationships, good communication, and understands the needs of customers. This is shown by the attitude of the employees who showed a sincere interest in serving a customer.

5. Assurance

The knowledge and courtesy of service employee and their ability to convey trust and confidence. These dimensions may be very important in services that require a fairly high degree of confidence which the customers will feel safe and secure. According Sitinjak (2004) dimension of service quality namely, assurance is connected with the company's ability and behavior of frontline staff in instilling a sense of trust and confidence to customers. Based on the research, there are four aspects of this dimension are: friendliness, competence, credibility and security (Jimmy & Edwin, 2013).

2.1.4 Customer Satisfaction Customer satisfaction becomes the most important part in the business field because when your customer is satisfied, they will provide the profitable business to the industry (Deng et al, 2009). The customer satisfaction is customer’s evaluation of goods and service in term of whether it is according to the customer’s

14 requirements or it is dissatisfied the customer’s needs and wants. According to Gustafsson (2005) customer satisfaction is the present performance of the product or service which are providing to it on a specific time or on that time when customers are using to it.

Satisfying customer has also seen as the main objectives for every business and is critical for a firm’s success (Naik, Gantasala & Prabhakar, 2010). In the service industry, it is critical to maintain a high level of customer satisfaction. To reach the customer satisfaction producers have to know the target or the market first, or in other word producers should understand the customer, which are customer needs, customer wants, and customer demand. After knowing those three attribute customer satisfaction will be reached directly (Kotler & Amstrong, 2010). Satisfied customers will use the product and will re-purchase the product. When this happens it will make loyalty of the customers to the product. A satisfied customer will give benefit for companies and will reduce competitive for similar business.

2.1.5 Relationship between Service Quality toward Customer Satisfaction Many researchers have realized the interrelated values of service quality and customer satisfaction. In restaurant when customer is served by the employee, means that the customer just perceived service from the restaurant management. Service is initiated from the interaction of customer and employee through restaurant’s ability to serve the promised service dependably and accurately (Ryu, Han, 2010). Based on Gagic, Tesanovic & Jovicic (2013) many restaurants train and expect the employee to be competent, attentive, fast, friendly, prompt, empathic, honest, responsible, and helpful. If the employee have those characteristic, customer will be satisfied with the service provide by the restaurant.

The main factor that is powerful in handling competition is service quality. Good service quality result the good customer satisfaction. This makes the service quality become an important determinant of customer satisfaction, which eventually leads to return intention (Kim et al, 2009). Researcher mostly used the measurement of service quality to assess the level of satisfaction from the customer in a restaurant. Service quality has been proven to have a significant relationship with customer satisfaction (Ha & Jang, 2010). According to, Dayang Nailul & Francine Rozario (2009) research show that, the service quality and place/ambience had a positive relationship with customer satisfaction. Service quality is able to greatly affect the level of satisfaction of a customer.

For the restaurant industry, customer satisfaction is seen as important for the prospect of their business. Restaurant need to emphasize and improving their service quality which will eventually affect customer satisfaction. The satisfaction then will in turn lead to customer re-visit intention and restaurant’s revenue (Chow et al, 2007).

2.2 Previous Research Table 2. 1 Previous Research

No Tittle Year Author Result 1. Service Quality and (2012) (Ghimire, There is Customer Satisfaction in 2012) significant Restaurant Business influence of Service Quality (Tangibility, Assurance, Reliability, Empathy, and responsiveness) towards Customer Satisfaction. 2. Service Quality (2010) (C.N. There is (Servqual) and its Effect Krishna significant on Customer Naik, influence (positif) Satisfaction in Retailing Swapna of Service Quality Bhargavi (Tangibility, Gantasala, Assurance, Gantasala V. Reliability, Prabhakar, Empathy, and 2010) responsiveness) towards customer satisfaction. 3. Customer Satisfaction in (2014) (Sabir & There is The Restaurant Industry; Irfan) significant Eximining the Model in influence of Local Industry responsiveness, Perpective reliability, phisical design,

price toward customer satisfaction. 4. The Impact of Service (2015) (Al-Azzam, Service quality Quality Dimensions on 2015) dimensions are Customer tangibility, Satisfaction: A Field responsiveness Study of Arab Bank in reliability, Irbid City, Jordan empathy, and security have positively affected the customer satisfaction.

2.3 Operational Definition

Table 2. 2 Operational Definition

No Variable Definition Indicator Question 1 Tangibility Physical aspects and elements Equipment & 1. The restaurant related to the organization in Materials has comfortable order to offer services. (Jayaraman seats in the (Maryam Andayesh, 2014) Munusamy, dining room. 2010) (Markovic, Raspor, & Dorcic, 2011) Physical aspects of the service Facilities 2. The restaurant’s such as physical facilities, (Jayaraman parking areas and appearance of personnel, tools Munusamy, building exteriors or equipment that is used to 2010) are visually provide the service, physical attractive. representations or other (Markovic, customers in the service Raspor, & facility. (Carlsson, 2010) Dorcic, 2011)

Tangibility defined as phisical Appearance 3. The restaurant appereance of restaurant (Jayaraman has clean rest services including the neatness Munusamy, rooms. of office staff and 2010) (Markovic, professionalism of employees. Raspor, & (Rao & Sahu, 2013) Dorcic, 2011) Tangibility defined as the 4. The employee’s appearance of physical dress are clean, facilities, equipment, neat and personnel, and written appropriate. materials. (Parasuraman et al., (Markovic,

1985) (Niveen El Saghier, Raspor, & 2013) Dorcic, 2011) Tangibility deifned as a Company 5. The Restaurant product or service that embeds Representative menu are the concept of a sensory (Jayaraman visually experience such as sight, Munusamy, acttractive. smell, taste, touch, or hearing. 2010) (Markovic, (Ros, 2008) Raspor, & Tangibility is the physical Dorcic, 2011) aspect and the appereance of the services such as facilities, equipment and personel appereance. 2 Reliability The organization's ability to Accuracy of 1. When the offer services properly and on Transaction employees time. (Maryam Andayesh, (Naik, promise to do 2014) Gantasala, & something by a Prabhakar, certain time, they 2010) do it. (Chingang Nde Daniel, 2010) The firm’s ability to deliver a 2. When the promised service dependably customer has a and accurately. (Rasli et al. problem, the 2012) (V. Naidoo, 2014) employees show sincere interest in solving the problem. (Chingang Nde Daniel, 2010) Reliability is about the Speed of 3. The restaurant accuracy and timeliness in the Services provide their

service provided. (Jayaraman (Naik, services at the Munusamy, 2010) Gantasala, & time they Prabhakar, promise to do so. 2010) (Chingang Nde Daniel, 2010) The reliability is the abillity of Accuracy of 4. The restaurant the office staff to provide Transaction taste of food is services dependably and (Naik, consistently accurately. (Rao & Sahu, Gantasala, & good. (Markovic, 2013) Prabhakar, Raspor, & 2010) Dorcic, 2011)

Reliability defined as the 5. The restaurant ability of a system to fulfill its has quick design function for a specified correction of the time period under specified wrong service. environment conditions is one (Markovic, component of risk a, and can Raspor, & be used as a basis to manage Dorcic, 2011) risks. (Ayyub & McCuen, 2011) Reliability is the ability of the employee to perform the services dependably and accurately. 3 Responsiven Tendency toward helping Speed of 1. The employees ess customers and offering prompt Response to give clearly services. (Maryam Andayesh, Complaint; information to 2014) customer. (Naik, (Chingang Nde Gantasala, & Daniel, 2010) Responsiveness defined as the Prabhakar, 2. The employees

willingness or readiness of 2010) give prompt employees to provide service. service to It involves timeliness of customer. services (Parasuraman et al., (Chingang Nde 1985) (Niveen El Saghier, Daniel, 2010) 2013) Responsivenessis the 3. The restaurant willingness to provide prompt always maintain service and help customers. speed and quality (Arivalan Ramaiyah, 2010) during busy times. (Markovic, Raspor, & Dorcic, 2011) Responsiveness is the process Concern and 4. The employees of reacting easily or readily. Desire for are never too (Connie Mok, 2013) Assisting. busy to respond (Naik, to customer’s Gantasala, & request. Prabhakar, (Chingang Nde 2010) Daniel, 2010) Responsiveness is willingness 5. The employees to help customers and provide are always prompt service. (Zeithaml, willing to help 2010) customer. Responsiveness is the (Chingang Nde willingness and readiness of Daniel, 2010) employee to help customer and performing prompt services. 4 Empathy Caring and individualized Attention and 1. The employees attention to customers' needs. Patience. give customer

(Maryam Andayesh, 2014) (Naik, individual Gantasala, & attention. Prabhakar, (Markovic, 2010) Raspor, & Dorcic, 2011) Empathy defined as the caring 2. The employees and individual attention the have their firm provides its customers. customer’s (Parasuraman et al., 1985) interest at heart. (Niveen El Saghier, 2013) (Markovic, Raspor, & Dorcic, 2011) Empathy is the provision of 3. The staffs are caring and individualized able to attention to customer communicate including access or effectively. (Rao approachability and ease of & Sahu, 2013) contact, effective communication, and understanding the customers. (Rao & Sahu, 2013) Empathy is giving individual Ease of 4. The employees attention; convinient hours; communication understand the personal attention; best . (Naik, specific needs of interest in heart and Gantasala, & their customer. understand customer’s specific Prabhakar, (Chingang Nde needs. (A.Ananth & 2010) Daniel, 2010). R.Ramesh, 2011) Empathy defined as the ability 5. The employes of to identify what someone else the restaurant is thinking or feeling and to give customer a respond to their thoughts and personal service.

feeling with appropriate (Chingang Nde emotion. (Howe, 2012) Daniel, 2010) Empathy is caring and giving individual attention to understand the customers specific need. 5 Assurance Employees’ courtesy, Concern for 1. The employees knowledge and ability to Customer. can answer create confidence and trust in (Naik, costumer’s customers. (Maryam Gantasala, & questions Andayesh, 2014) Prabhakar, completely. 2010) (Markovic, Raspor, & Dorcic, 2011) Assurance defined as Security for 2. The restaurant knowledge and courtesy of Transaction. are comfortable employees and their ability to (Naik, and confident inspire trust and confidence. Gantasala, & feeling. (Parasuraman et al., 1985) Prabhakar, (Markovic, (Niveen El Saghier, 2013) 2010) Raspor, & Dorcic, 2011) Assurance is mean of being Staff Attitude. 3. The employees safe, the responses state that (Naik, provide the customers do not feel Gantasala, & information assurance is being important Prabhakar, about menu as part of the service quality 2010) items, their that should be included. ingredients, and (Jayaraman Munusamy, 2010) method of preparation. (Markovic, Raspor, & Dorcic, 2011)

Assurance is the component of 4. The restaurant corporate governance by has Well-trained, which a management team competent and provides accurate and current experienced information to the employee. stakeholders about the (Markovic, efficiency and effectiveness of Raspor, & its policies and operation, and Dorcic, 2011) the status of its compliance with the statutory of obligations. (Powell, 2012) Assurance means that the customers want to rely on courteous and knowledgeable employees who convey trust and confidence. (Kabir & Carlsson, 2010) Assurance is the employee’s courtesy, knowledge and ability when performing the services in order to create trust and confidence. 6 Customers Customer's satisfaction with a Pleasure 1. Overall, I Satisfaction service can be defined as a (Aaker, 2011) satisfied with comparison of his/her dining expectations from services experience. with his/her impression of the (Markovic, provided services. (Maryam Raspor, & Andayesh, 2014) Dorcic, 2011) Customer satisfaction is Repurchase 2. I have tendency defined as the attitude Intention to Returning to resulting from what customers (Sabir & Irfan, this restaurant.

25 believe should happen 2014) (Markovic, (expectations) compared to Raspor, & what they believe did happen Dorcic, 2011) (performance perception) (Neal, 1998) (Lau, 2013). Customer Satisfaction is a Satisfied with 3. I satisfy with the measurement of the kind of service price that products and services provided (Aaker, 2011) restaurant by a company to meet its charged me. customer’s expectation. (Seyonant, 2007) (Jayaraman Munusamy, 2010) Customer satisfaction is 4. The restaurant identified as the distinction gives Excellent between assumed quality of quality of service and the customer‟s service. involvement or feelings after (Markovic, having perceived the service. Raspor, & (Ghimire, 2012) Dorcic, 2011) Customer satisfaction is the Wilingness to 5. I would love to customer’s feeling that a recommend. recommend this product/service has met or (Sabir & Irfan, restaurant to exceeded 2014) others. his/her expectations. (Brink (Markovic, and Berndt 2008) (Olajide, Raspor, & 2011) Dorcic, 2011) Customer satisfaction is the feeiling of customer toward a product or service performed compared to his/her expectations.

2.4 Theoretical Framework

Tangibility (X1) H1

Reliability (X2) H2

H3 Responsiveness (X3) Customer Satisfaction (Y)

H4 Emphaty (X4) H5

Assurance (X5)

Figure 2. 1 Theoretical Framework

Constructed by Researcher, Applied from Winy (2013)

The Figure 2.1 describe the relationship of tangibility (X1), Reliability (X2), responsiveness (X3), empathy (X4), and assurance (X5) towards customer satisfaction (Y) partially and simultaneously for Kartini Restaurant in Cikarang, West Java. Tangibility, reliability, responsiveness, empathy, and assurance act as independent variables that influence the customer satisfaction as dependent variable. Independent variable is symbolize by X and dependent variable is symbolize by Y.

2.5 Hypothesis In this research, researcher would like to know whether tangibility, reliability, responsiveness, empathy, and assurance has any influence on customer satisfaction. The hypothesis are as follow:

1. H01: There is no partial significant influence of tangibility towards customer satisfaction in Kartini Restaurant.

Ha1: There is partial significant influence of tangibility towards customer satisfaction in Kartini Restaurant.

2. H02: There is no partial significant influence of reliability towards customer satisfaction in Kartini Restaurant.

Ha2: There is partial significant influence of reliability towards customer satisfaction in Kartini Restaurant.

3. H03: There is no partial significant influence of responsiveness towards customer satisfaction in Kartini Restaurant.

Ha3: There is partial significant influence of responsiveness towards customer satisfaction in Kartini Restaurant.

4. H04: There is no partial significant influence of empathy towards customer satisfaction in Kartini Restaurant.

Ha4: There is partial significant influence of empathy towards customer satisfaction in Kartini Restaurant.

5. H05: There is no partial significant influence of assurance towards customer satisfaction in Kartini Restaurant.

Ha5: There is partial significant influence of assurance towards customer satisfaction in Kartini Restaurant.

6. H06: There is no simultaneous significant influence of tangibility, reliability, responsiveness, empathy, assurance towards customer satisfaction in Kartini Restaurant.

Ha6: There is simultaneous significant influence of tangibility, reliability, responsiveness, empathy, assurance towards customer satisfaction in Kartini Restaurant.

CHAPTER III

RESEARCH METHODOLOGY

3.1 Research Methodology

3.1.1 Quantitative Method Quantitative research methodologies have several important strengths that make them ideal for addressing the types of research questions that are posed in social science research. Specifically, quantitative methods provide us with an objective framework for testing and validating theories and hypothesis about world around us. Predicted on having interesting and creative research question, we can use quantitative research methodologies to objectively describe and predict behaviors and, in the case of experimental research, to look at cause and effect relationship ( O’Dwyer and Bernaeur, 2013).

Based on the result of quantitative research the necessary production, profitability price, product parameters, and more can be found. The main merit of quantitative research is that, it reduces the risk of making wrong decisions and choices (Jhonson and Christensen, 2008).

Quantitative method is used for this research with using questionnaire as the research instrument. By using quantitative method for this research, the researcher could collect all the information which needed through questionnaires from large number of respondents those visit Kartini Restaurant, and the result of the data will be analyzed and measured using statistical method. Independent variable is presumed cause of any change in dependent variable (Hair et al, 2010). There are six variables

which are measured in this research, four variables for independent variables; Tangibility, Reliability, Responsiveness, Empathy and Assurance and for dependent variables is Customer Satisfaction.

3.1.2 Research Design In this research, the researcher used conclusive research as the research design. Conclusive research is more likely to use statistical test, advanced analytical techniques, and larger sample sizes. Compared with exploratory studies, conclusive study is more likely to use quantitative, rather than qualitative techniques (Nargundkar, 2008).

Based on Sekaran and Bougie (2012) conclusive research design divides into two categories, descriptive and causal research. The researcher uses causal study in this research. Causal studies are at the heart of the scientific approach to research. Such studies test whether or not one variable causes another to change. In causal study, the researcher is interested in delineating one or more factors that are causing the problem. In other words, the intention of the researcher conducting a causal study is to be able to state that variable X causes variable Y. So, when variable X is removed or altered in some way, problem Y is solved (note that quite often, however it is not just one variable that causes a problem in organizations).

3.2 Research Instrument

Research Instrument is the tool that used to answer the research questions that stated in the previous chapter. The Researcher intention was gathering the information from as much various sources. Data can be obtained from primary or secondary data, Primary data refers to information obtained first- hand by the researcher on the variables of interest for specific purpose

of the study and secondary data refer to information gathered from sources that already exist (Sekaran and Bougie, 2010). In order to fulfill the validity of this research, the researcher use both primary and secondary data

The researcher user questionnaire as the procedures and tools to collect data and analyze data. The advantages of questionnaire are:

Table 3. 1 Advantage of Different Questionnaire

No. Mode of Data Advantage

Collection 1 Personal Can establish rapport and motivate

Administered respondent. Doubts can be clarified. Questionnaires Less expensive when administered to groups

of respondents. Almost 100% respond rate ensured. Anonymity of respondent is high. 2 Mail and Electronic Anonymity is high.

Questionnaire Wide geographic regions can be reached

(can reach globally). Token gifts can be enclosed to seek

Rcompespondlianecent. can take more time to respond

aEta convsy toe aniedmnicenis. ter. Very inexpensive and fast delivery. Source: Sekaran and Bougie (2011)

Questionnaire is a widely used and useful instrument for collecting survey information. Providing structured, often numerical data, being able to be administered without the presence of the researcher, and often being comparatively straight forward to analyze (Cohen et al, 2007).

According to Cohen et al (2007) there are staged sequences for planning a questionnaire, as follows:

1. Decide the objectives of the questionnaire. 2. Decide the population and the sample. 3. Generate the topics/construct/concepts/issues to be addressed and data required in order to meet the objectives of the research. 4. Decide the kinds of measures/scales/questions/responses required. 5. Write the questionnaire items. 6. Check that each issue from (3) has been addressed, using several items for each issue. 7. Pilot the questionnaire and refine items as a consequence. 8. Administer the final questionnaire.

Using questionnaire as the tool to collect and analyze data can choose several types of questionnaire items. According to Cohen et al (2007) these are several types of questionnaire items, as follows:

1. Close-ended questions

Close-ended question prescribe the range of response from which the respondent may choose. A close-ended question limits respondents with a list of answer choices from which they must choose to answer the question. Closed-ended questions can be in the form of multiple choice, scale format, rank ordering, and rating scales. In this research, researcher chose close-ended questions.

2. Open-ended questions

Open-ended question is very attractive device for smaller scale research or for those sections of a questionnaire that invite an honor, personal comment from respondents in addition to ticking number and boxes.

According to Cohen et al (2007) if a closed and structured questionnaire is used, enabling patterns to be observed and comparisons to be made, then the questionnaire will need to be piloted and refined so that the final

version contains as full a range of possible responses as can be reasonably foreseen.

Likert scale is designed to examine how strongly subjects agree or disagree with statements on a five-point scale. The researcher chose closed-ended question as the questionnaire will use Likert-type scale since the data is ordered categorical response (Elosua, 2011). The purpose of this questionnaire is to analyze the level of agreement of each respondent with each item of statement. The measurement is based on these five-point scales ranging from strongly disagree to strongly agree (Rensis Likert) :

Table 3. 2 Likert Scale

Relative Grading Statement Score Strongly Disagree 1

Disagree 2

Neutral 3

Agree 4 Strongly Agree 5 Source: Malhotra (2010)

The statement for the respondent is set accordingly as the table below:

Table 3. 3 Format likert scale in questionnaire

No Statement Stongly Disagree Neutral Agree Strongly Disagree Agree

Source: Self Construct

3.2.1 Data Analysis In analyzing and observing the data obtained, the researcher used two major programs that are have statistic relation. The first program that the researcher used was Microsoft Excel. The function of Microsoft Excel program is intended to tabulate the data obtained from questionnaire distributions. It simplifies the researcher to analyze and observe the data.

The second program is Statistical Package for Social Science (SPSS) 16 version. SPSS is used by researcher to quantitatively examine the data obtained from questionnaires distribution. SPSS has been recognized to be helpful and support the statistical data investigation. In this research, SPSS was used to analyze reliability, validity, correlation, and binary logistic regression analysis.

3.3 Sampling Design

Sampling Design is part of statistical methodology that related in taking a portion of the population. If a sampling is done correctly, statistical analyze can be used to generalize a whole population. There are two major types of sampling design: probability and non-probability sampling. In probability sampling, the elements in the population have some known, nonzero chance or probability of being selected as subjects. In non-probability sampling, the elements do not have a known or predetermined chance of being selected as subjects (Sekaran and Bougie, 2013).

In this research used probability sampling which is random sampling. Probability sampling design, the elements in the population have any probabilities attached to their being chosen as a sample subjects. This means that the finding from the study of the sample can be confidently generalized to the population. Random sampling involves the choice of

34 subjects who are most advantageously placed or in the best position to provide the information required (Sekaran and Bougie, 2013).

3.3. 1 Population Population refers to the entire group of people, events, or things of interest that the researcher wishes to investigate. It is the group of people, events, or things of interest for which the researcher wants to make inferences or based on sample statistics (Sekaran and Bougie, 2013).

In this research of study, the research population is focused on people who visit and get the service of Kartini Restaurant in Cikarang. The respondent are both male and female.

3.3.2 Sample Sample is a subset of the population. It comprises some members selected from it (Sekaran and Bougie, 2013). In determining the sample size, the researcher refers to the theory of Maholtra (2010) which says, for unknown population the sample size must be at least or 5 times of the total questions used in the research. Whereas, Sekaran and Bougie (2010) suggest that sample size which are larger than 30 and less than 500 normally applicable for most research. In this research, researcher has 29 questions. Therefore, the minimum sample of this research is 145, and researcher chose 180 respondents as the sample for this research. In March 31st – April 3rd 2016 the researcher distributed the questionnaires.

Sampling design is part of statistical methodology that related in taking a portion of the population. If a sampling is done correctly, statistical analysis can be used to generalize the whole population. There are two major type of sampling design: probability and nonprobability sampling.

3.4 Validity and Reliability

3.4.1 Validity According to McBurney and White (2009) validity is an indication of accuracy in terms of the extent to which a research conclusion correspond with reality.

According to Hair et al (2010) validity is the extent which a scale or set of measures accurately represents the concept of interest. According to Cohen et al (2007) quantitative research possesses a measure of standard error which is inbuilt and which has to be acknowledged. In quantitative data, validity might be improved through careful sampling, appropriate statistical treatments of data.

According to Cohen, et al (2007) each question of the questionnaire can be said valid if the significance level is ≤ α (0.05).

df = n – Independent Variable

Where,

Df = degree of freedom

N = number of pretest respondent

3.4.2 Reliability According to Hair et al (2010) reliability is an assessment of the degree of consistency between multiple measurements of a variable. The item-to-total correlation should exceed 0.50 and that the inter item correlation exceed 0.30. The lower limit for Cronbach’s alpha is 0.70, although it may decreases to 0.60 in exploratory research. Cronbach’s alpha has positive relationship to the number of item in the scale because increasing the number of items.

3.5 Data Collection

The researcher collected the primary data from distributing questionnaires to 180 respondents. For the secondary data, the researcher collected it from journals, books, websites, and other sources. The researcher use two methods which are data that the researcher collected (Primary data) or data that is gathered and maintained by others (secondary data).

Problem Identification and Problem Statement

Literature Review

Construct Questionnaire

Pre-test Questionnaire: Validity and Reliability Test and Dry Run

Data Collection

Data Analysis and Interpretation

Conclusion and Recommendation

Figure 3. 1 Research Framework

Source: Sekaran and Bougie (2013)

On figure 3.2 shows a research framework that will be used by the researcher. Each level of activity in this framework will be done by the researcher carefully and correctly.

3.5.1 Correlation and Multicollinearity 3.5.1.1 Correlation

In this research, the researcher used Spearman’s rank correlation coefficient because the nature data is ordered categorical data. Spearman’s rank correlation coefficient is used to measure the strength of the association between two variables that are nonparametric (Ordinal data) (Hauke, 2011).

Equation 3.3 Spearman’s rank correlation coefficient

Where, rs = Spearman correlation value

N = number of paired ranks

d = difference between the paired rank

The interpretation of correlation strength for spearman ar “0.00-0.19” is very weak, “0.20-0.39” is weak, “0.4-0.59” is moderate, “0.60-0.79” is strong and “0.80-1.00” is very strong.

3.5.1.2 Multicollinearity

Multicollinearity defines as existence of nearly linear dependency among columns of the design matrix X in linear prediction model (Yakubu, 2010).

According to Jin (2014) coefficient among independent variables are reported to check with a potential multicollinearity problem. However, if the degree of linear relationship is less than 0.8, a rule of thumb, and hence, a multicollinearity problem may not be serious and it is fine to be further used in this research.

3.5.2 Primary Data Primary sources of data have been described as those items that are original to the problem under study and may be thought of as being in two categories. First are the remains of a given period. Second is had direct physical relationship with the events (Cohen et al, 2007). The researcher uses primary data for this research of the study from the questionnaire distribution in the survey.

3.5.3 Secondary Data According to Koziol and Arthur (2011) define secondary data as analysis of data collected by someone else. On the other hand, Ahmad (2014) stated that secondary data is data collected from a source that has already been published in any form such as books, journals, articles, and periodicals. Other researcher, Vartanian (2011) also stated that secondary data can be including any data that are investigated be answer a research question for which the data were collected. In other words, secondary data are those which have already been collected by someone else and have gone through the statistical machines. Thus, secondary data is used in order to complete the data that the primary data did not provide from existed information. The researcher uses secondary data for this research of the study directly from the internet, which are website, e-journals, etc.

3.6 Testing the Hypothesis

3.6.1 Binomial Logistic Regression According to Steingrimsson et al (2010) described that binary logistic regression is the method of choice used when the dependent variable is binary and the researcher would like to explore the relative influence of continues and/or categorical independent variables on the dependent variable, and to access interaction effects between the independent variables. According to Wuensch (2009) binary logistic regression usually used when the data with liker-type scale response with “completely disagree” to “completely agree”.

However, according to Grimbeek et al (2005) likert scale response categories not only provide a positive opportunity for a smoother distribution of responses (i.e., a normal spread of choices across categories) but also allow "negative" opportunities for participants to misjudge the intensity of what is inherently a qualitative response. That is, the range of available response categories can obscure rather than clarify the intent of the respondent. A strategy for minimizing respondent ambiguity is to collapse across response categories.

The effect of this strategy on, for example, an acceptance scale, might be to reduce the 5-point response categories of Strongly disagree, Disagree, Undecided/neutral, Agree, and Strongly agree to dichotomous categories representing the participant's choice between Disagreement (Collapsing across Strongly Disagree, Disagree, Undecided) or Agreement (Collapsing across Agree, Strongly agree). In this research, the researcher treated the likert scale as ordinal categorical data by collapsing or recoding each variable value into same variable from 1-3 into “0” or “Disagree”, and 3.01-5 into “1” or “Agree”. In this research is to

40 look at which variables predict whether a person is satisfied or unsatisfied.

The researcher measure regarding, tangibility, reliability, responsiveness, empathy and assurance of Kartini Restaurant opinion in agreement scale. Using logistic regression, the researcher might find that all of these variables predict the attitude of the customer, but the technique will also allow the researcher to predict whether a certain person is likely to be satisfied or unsatisfied.

3.6.1.1 Classification Table

The predictive success of the logistic regression can be assessed by looking at the classification table, showing correct and incorrect classification of the dichotomous, ordinal, or polytomous dependent. The overall percentage describes the precision of the model (Garson, 2012).

3.6.1.2 Model Summary

Model Summary in logistic regression is indicating the ability of independent variable in explaining the dependent variable or measuring the strength of association. Cox and Snell R Square show the minimum value of strength whereas Nagelkerke R Square shows the maximum value of overall strength association (Garson, 2012).

3.6.1.3 Omnibus Test

The omnibus test may be interpreted as a test of the capability of all predictors in the model jointly to predict the response (dependent) variable. A finding of significance when the value is below than 0.05, meaning all independent variables have simultaneous significant to the dependent variable (Garson, 2012)

3.6.1.4 Partial Test

This test aims to find out if there is partial significant impact of each independent variable on dependent variable. A finding of significance if the value of sig. below than 0.05, and Exp(B) shows the nature of impact whether positive or negative (Garson, 2012). Positive or negative B coefficients indicate the explanatory variable increases or decreases the logit of the dependent. An Exp(B) is the odd ratio for the explanatory variable. The odds ratio for a given independent variable represents the factor by which the odds (event) change for one unit change in the independent variable. An Exp(B) > 1 means the independent variable increases the logit and therefore increases odds (event). If Exp(B) < 1.0, then the independent variable decreases the logit and decreases odds (event). Thus, to find the influential factors on the dependent variable, it will consider the only factors which have the significance and the value of Exp(B) > 1 (Nochai & Nochai, 2011).

3.6.2 Latent Variable Latent variable is “a variable in regression analysis which is, in principle, unmeasurable. Another common definition type treats latent variables as impossible to measure, as unobservable or unmeasurable (Bollen, 2002). In statistic, latent variable are variables that are not directly observed but are rather inferred (through a mathematical model) from other variables that are observed (directly measured) (Wikipedia.com, 2016).

According to Borsboom (2003) it is common to investigate the structure and effect of unobservables like intelligence through the analysis of interindividual differences data by statistically relating covariation between observed variables to latent variables. This is

42 done, for example, in the widely used factor model. The idea is that although the fit of a latent variable model to the data may not prove the existence of causally operating latent variables, the model does formulate this as a hypothesis; consequently, the fit of such models can be adduced as evidence supporting this hypothesis. Finally, it is often suggested that the type of causal relation tested in latent variable modeling. The basic statistical idea of latent variables analysis is simple. If a latent variable underlies a number of observed variables, then conditionalizing on that latent variable will render the observed variables statistically independent. This is known as the principle of local independence. The problem of latent variables analysis is to find a set of latent variables that satisfies this condition for a given set of observed variables.

CHAPTER 4

DATA RESULT AND ANALYSIS

4.1 Company Profile

Picture 4. 1 Kartini Restaurant Logo

Operating Hours : 10.00 – 22.00

Website : http://kartiniresto.com/

Establihed in 1998, Kartini Restaurant is Indonesian Family’s Food with the traditional recipe from generation to generation. Kartini Restaurant make a dining room as lesehan in saung (gazebo).With the delight of Indonesian’s taste, Kartini Restaurant maintain the heritage of Indonesian culinary. For nearly two decades, Kartini Restaurant serve hundreds of family favorite food menu. Nowadays, Karini Restaurant provide space for more than 2000 person, It also has other services such as wedding garden party, catering and meeting complete with the lunch box, food stall, traditional menu, etc.

Kartini Restaurant located in Jalan Raya Industri Tegal Gede No.8, Desa Pasir Sari, Kecamatan Cikarang Selatan, Bekasi. Kartini Restaurant also has a branch in Cibarusah, Bekasi.

4.2 Data Result Analysis

4.2.1 Pilot Test Before the questionnaire is distributed to the respondent, researcher conducts pilot test to 30 respondents which the results of this test will be used for validity and reliability test. (Dasgupta & Subhasish, 2013)

4.2.1.1 Validity Test The researcher compares the results Corrected item total Correlation with the r table value in the validity test. From 30 questionnaires, the value of r table is calculated by using spearman’s r table with degree of freedom 25 from the difference of total pilot test and independent variable. Therefore, the value of r table is 0.398

df = n – independent variable

df = 30 – 5 = 25

Table 4. 1 Validity Test

No. Statement Corrected R- Table Validity Item Total Value 1 Tangibility 1 0.718 0.398 Valid 2 Tangibility 2 0.795 0.398 Valid 3 Tangibility 3 0.816 0.398 Valid 4 Tangibility 4 0.866 0.398 Valid 5 Tangibility 5 0.765 0.398 Valid 6 Reliability 1 0.663 0.398 Valid 7 Reliability 2 0.491 0.398 Valid 8 Reliability 3 0.746 0.398 Valid 9 Reliability 4 0.616 0.398 Valid 10 Reliability 5 0.606 0.398 Valid 11 Responsiveness 1 0.759 0.398 Valid

12 Responsiveness 2 0.669 0.398 Valid 13 Responsiveness 3 0.824 0.398 Valid 14 Responsiveness 4 0.661 0.398 Valid 15 Responsiveness 5 0.750 0.398 Valid 16 Empathy 1 0.528 0.398 Valid 17 Empathy 2 0.725 0.398 Valid 18 Empathy 3 0.654 0.398 Valid 19 Empathy 4 0.612 0.398 Valid 20 Empathy 5 0.680 0.398 Valid 21 Assurance 1 0.633 0.398 Valid 22 Assurance 2 0.605 0.398 Valid 23 Assurance 3 0.568 0.398 Valid 24 Assurance 4 0.763 0.398 Valid 25 Customer Satisfaction 1 0.599 0.398 Valid 26 Customer Satisfaction 2 0.589 0.398 Valid 27 Customer Satisfaction 3 0.859 0.398 Valid 28 Customer Satisfaction 4 0.720 0.398 Valid 29 Customer Satisfaction 5 0.854 0.398 Valid Source: Constructed by researcher, Primary Data – SPSS V.16 (2016)

4.2.1.2 Reliability Test Reliability is the ability of a measurement instrument by testing for consistency and stability. Cronbach’s Alpha is used as the formula to determine how the items in a set are positively correlated to one another. The value which is close to 1 then the reliability is higher than consistency reliability (Sekaran Bougie). According to Hair, Black, Babin & Anderson (2010), suggested values above 0.6 for a questionnaire to be reliable.

Table 4. 2 Reliability Statistics

Source: Constructed by researcher, Primary Data – SPSS V.16 (2016)

4.3 Descriptive Analysis

4.3.1 Respondent Profile The respondent profile data are used to gain the characteristic of demographic respondents through the questionnaire. The respondent profiles are consisting of gender, age, income, education, occupation and how customer get information about Kartini Restaurant. The result as follow:

4.3.1.1 Gender

Gender

64 Male Female 116

Figure 4. 1 Respondent Profiles: Gender

Source: Primary Data, Constructed by Researcher (2016)

As shown in figure 4.1 about the respondent gender of this researcher 116 respondents or 64.4% were male and 64 respondents or 35.56% were female. Therefore, the highest frequency of gender in this research is male.

4.3.1.2 Age

Age 4

28 29 < 17 Years 17-25 Years 26-35 Years 44 36-45 Years 75 > 45 Years

Figure 4. 2 Respondent Profile: Age

Source: Primary Data, Constructed by Researcher (2016)

As shown in figure 4.2 about the respondent age of this researcher 4 or 2.2% respondents were early teenagers between < 17 years old, 29 or 16.1% respondents were between 17 – 25 years old, 75 or 41.6% respondents were early adults between 26 – 35, 44 or 24.4% respondents were adults between 36-45 years old, and 28 or 15.5%. Therefore, the group age of 17 -25 years old dominates the respondent profile in this research.

4.3.1.3 Income

Income

< Rp3.000.000 22 16 36 Rp3.000.000 - Rp5.000.000 Rp5.000.001 - Rp10.000.000 106 > Rp10.000.000

Figure 4. 3 Income

Source: Primary Data, Constructed by Researcher (2016)

As shown in figure 4.3 about the respondent income of this researcher. 16 or 8.9% respondent’s income were below Rp3.000.000, 36 or 20% respondent’s income were between Rp3.000.000 – Rp5.000.000, 106 or 58.9 respondent’s income were between Rp5.000.001 – Rp.10.000.000, and 22 or 12.2% respondent’s income were above Rp10.000.000 Therefore, the group income of Rp.5000.000 – Rp10.000000 dominates the respondent profile in this research.

4.3.1.4 Education

Education

11 9 14 High School or Lower Diploma 61 Bachelor Degree 85 Master Degree Doctoral or Higher

Figure 4. 4 Respondent Profile: Education

Source: Primary Data, Constructed by Researcher (2016)

As shown in figure 4.4 about the respondent occupation of this researcher 14 respondents or 7,8% were high school customer or lower, 61 respondents or 33.9% were diploma, 85 respondents or 47.2% were bachelor degree, 11 respondents or 6.1% were master degree and 9 respondents or 5% chose doctoral or higher. Therefore the majority education backgrounds of this research were Bachelor Degree.

4.3.2.5 Occupation

Occupation

7 12 14 Student

28 Private Employee Civil Servant Entrepreneur 119 Others

Figure 4. 5 Respondent Profile: Education

Source: Primary Data, Constructed by Researcher (2016)

As shown in figure 4.5 about the respondent occupation of this researcher 14 respondents or 7.8% were customers, 119 respondents or 66.1% were private employee, 28 respondents or 15.6% were civil servant, 7 respondents or 3.9% were entrepreneur and 12 respondents or 6.7% chose other occupation. Therefore the majority occupation of this research is private employee.

4.3.1.6 Got Information of Kartini’s Resto

How Do You Know about Kartini Resto?

23 14 Social Media 37 Family 38 Relatives Advertisement 68 Others

Figure 4. 6 Respondent Profile: Knowing Kartini Restaurant Information

Source: Primary Data, Constructed by Researcher (2016)

As shown in figure 4.6 about how the respondent got the information about Kartini Restaurant of this researcher 14 or 12,8% respondents knew Kartini Restaurant from Social Media, 37 or 20.5% respondents knew Kartini Restaurant from Family, 68 or 37.8% respondents knew Kartini Restaurant from Relatives, 38 or 21.2% respondents knew Kartini Restaurant from from advertisement and 22 or 12.2% knew Kartini Restaurant from others factor. Therefore the majority respondent got the information about Kartini Restaurant from relatives.

4.3.2 Result of Respondent Response Based on questionnaires, the respondent’s assessments refer to the Tangibility, reliability, responsiveness, empathy, and customer satisfaction. The respondents fill the questionnaire based on their liking scale from statement.

4.3.2.1 Tangibility

Kartini Restaurant has comfortable seats in the dining room.

Strongly Disagree 7 Disagree 20 Neutral 38 Agree 91 Strongly Agree 24

Figure 4. 7 Tangibility Statement 1