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The Rela ionships o Repu a ion, Ad e isemen
A ac i eness, Communi y E ec wi h Cus ome
Value and Posi i e Wo ds o Mou h o Bea
B and Milk Consume s in Malang
Anung P ase yo Nug oho
1
Managemen S udy P og amme, T ibhuwana Tunggadewi Uni e si y, Jalan
Telaga Wa na, Tlogomas, Malang 65144, Indonesia
Ka unia Se yowa i Su o o
Animal Husbandy S udy P og amme, T ibhuwana Tunggadewi Uni e si y,
Jalan Telaga Wa na, Tlogomas, Malang 65144, Indonesia
Abs ac
One o he ma ke ing ac i i ies unde aken by PT Nes le Indonesia o
communica e Bea B and milk in he ma ke is by Wo ds o Mou h ma ke ing.
Howe e , Bea B and Milk is only supe io in se e al egions in Indonesia. The
pu pose o his s udy we e o analyze he in luence o epu a ion, in luence o
ad e isemen a ac i eness, and communi y e ec o cus ome alue o Bea
B and Milk in Malang, and o analyze he in luence o cus ome alue o posi i e
wo ds o mou h on consume s o Bea B and Milk in Ci y Malang. The p ima y
da a we e ob ained om ques ionnai es sp ead o Bea B and Milk consume s in
Malang. The sampling echnique used was acciden al sampling. The analysis
echnique used in his s udy was S uc u al Equa ion Model which was ope a ed
by AMOS p og am 16. The a iables measu ed we e epu a ion, ad e isemen
a ac i eness, communi y e ec , cus ome alue, and wo d-o -mou h. Resul s
o he s udy showed ha epu a ion is an impo an i s elemen in implemen ing
cus ome alue. The epu a ion e ec o posi i e wo ds o mou h begins wi h
how epu a ion can gi e dominan s a egic e ec s on inc easing cus ome alue.
The ad e isemen a ac i eness was he second a iable a ec ing he
ealiza ion o posi i e wo ds o mou h. Communi y e ec is he hi d impo an
elemen in implemen ing posi i e wo ds o mou h. In o de o c ea e posi i e
wo ds o mou h, imp o emen o cus ome alue can be ealized h ough
epu a ion, ad e isemen a ac i eness, and communi y e ec s.
1
Co esponding au ho ’s email: [email protected]
In e na ional Jou nal o Managemen , Accoun ing and Economics
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621
Keywo ds: Ma ke ing, s uc u al equa ion model, wo d o mou h
Ci e his a icle: Nug oho, A. P., & Su o o, K. S. (2015). The Rela ionships o Repu a ion,
Ad e isemen A ac i eness, Communi y E ec wi h Cus ome Value and Posi i e Wo ds o
Mou h o Bea B and Milk Consume s in Malang. In e na ional Jou nal o Managemen ,
Accoun ing and Economics, 2(7), 620-630.
In oduc ion
The business de elopmen inc easing apidly nowadays o ces companies o ace s i
compe i ions, no excep ion o he compe i ion in liquid ood p oduc s, especially eady-
o-d ink milk in cans. Fac s show ha he sales o eady- o-d ink milk in cans a e
inc easing quickly. This condi ion boos s manu ac u e s o imp o e i s inno a ion by
launching new p oduc s o enhance cus ome alue as well in i s ma ke domina ion. This
is in acco dance wi h he basic p inciples p oposed by Wood u (1997) ha , in p inciple,
he pu pose o a company is o main ain and de elop he good enough unde s anding and
knowledge o he cus ome s. In o he wo ds he company's success is measu ed om he
abili y o he company o mee he cus ome needs and expec a ions. Cus ome alue is a
mani es a ion o all e o s o he company aimed o mee he expec a ions and needs o
cus ome s, as well as o be e lec ed in he goods and se ices o e ed o cus ome s (Hube
e al., 2001).
Re e ing o he indings o Wood u (1997); Budiman (2003); and Smi h and Colga e
(2007), al hough he cus ome alue has been implemen ed by many companies o mo e
han 2 ( wo) decades ago, bu in ac acco ding o hem many companies s ill ha e no
been able o ealize he cus ome alue in hei o e all ma ke ing ac i i ies.
The e e ence in e es s udy was bo n om he c i icism o DeCa lo e al. (2007) in he
p eceding s udy, which had lack o special a en ion om some esea che s, especially
he an eceden measu emen o p oduc e e ence in e es which was s ill e y
limi ed. The s udy conduc ed by Mangold e al. (1999) shows ha he unde s anding o
he impo ance o p oduc e e ence in e es is s ill e y limi ed in he e iew o he s udy.
One o he ma ke ing ac i i ies unde aken by PT Nes le Indonesia o communica e Bea
B and milk in he ma ke is by Wo ds o Mou h (WOM) ma ke ing. Wo ds o Mou h
ma ke ing dese es o be aken, bu because he cos is ela i ely inexpensi e as well as
based on he s udy o He e al. (1991), i is ound ha WOM has a g ea e impac han
w i en in o ma ion. Fu he mo e, he in o ma ion on WOM is belie ed can a ac
a en ion o he in o ma ion, de ain people o no u ning away, and inc ease accessibili y
in o de o enhance cus ome alue (He e al., 1991).
I is p esumed ha cus ome alue o Bea B and Milk a ises because o he
agg essi eness o PT Nes le Indonesia in ad e ising. The agg essi eness is no only
ecognized by Bea B and Milk ad e isemen which is so in ense showing on elec onic
media and p in ed media, bu also by he success ul slogan as he whole milk gi ing
heal h. In addi ion, Bea B and Milk is known by he wo ld communi y because o he
image embedded in socie y ha Bea B and Milk is a whole milk d ink p oduc b inging
heal h. This makes consume s con iden wi h Bea B and Milk. The exis ence o a
communi y in a socie y is e y bene icial o a company. Communi y e ec o o en
called wi h Bandwagon e ec (he d ins inc ) is people o en ollow he c owd wi hou
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622
examining he bene i o a pa icula case. Communi y can be used as a ool o
ne wo king and e aining cus ome s. The ba ie o a company o p omo e i s communi y
is o build new alue con inuously. Thus communi y will inc easingly eel he bene i s o
he p oduc and hen sp ead he posi i e e ec s o p oduc s o o he s (Smi h and Colga e,
2007). The objec i es o his s udy we e o analyze he e ec o epu a ion, ad e ising
a ac i eness, and communi y e ec s on cus ome alue o Bea B and Milk in Malang,
and o analyze he e ec o cus ome alue on posi i e wo ds o mou h on Bea B and
Milk consume s in Malang
Resea ch Me hod
The s udy had been conduc ed in i e dis ic s o Malang, namely Klojen, Sukun,
Blimbing, Lowokwa u, and Kedungkandang, om Feb ua y 2014 o Decembe 2014.
Types and Sou ces o Da a
The ype o da a used in his s udy was subjec da a (sel - epo da a) i.e. in he o m
o a i udes, opinions, expe iences, o cha ac e is ic o a pe son o g oup o pe sons who
became subjec s o he s udy o esponden s (Ind ian o o and Supomo, 1999). The da a
used in his s udy we e p ima y and seconda y da a sou ces. Fo his s udy, he p ima y
da a we e ob ained om ques ionnai es dis ibu ed among he esponden s i.e. he
consume s o Bea B and Milk in Malang.
Popula ion and Sample
The popula ion used in his s udy was he consume s o Bea B and milk in Malang.
The sample in his s udy was he consume s o Bea B and milk in Malang. In acco dance
wi h he analy ical ool used i.e. S uc u al Equa ion Model (SEM), he de e mina ion o
he minimum numbe o ep esen a i e samples acco ding o Hai e al (1998) depends
on he numbe o indica o s mul iplied by 5 o 10. The minimum numbe o samples o
his s udy = numbe o indica o x 5. The numbe o indica o was 18 (Table 1), so ha
he minimum sample size was 90, while he maximum sample size was 18 x 10 = 180.
Al hough he e is no co ec sample size, he app op ia e sample size is be ween 100-200
samples (Hai e al., 1998). Thus, in acco dance wi h he equi emen s o SEM as
de e mined, he minimum numbe o esponden s o his s udy sample was 90
esponden s and maximum sample was 180 esponden s.
Sampling Technique and Da a Collec ion
The sampling echnique used was Acciden al sampling i.e. sampling echnique by
coincidence, i means ha anyone who by chance encoun e ed by esea che s could be
used as a sample, i i is deemed ha he pe son ound was sui able as a da a sou ce. The
da a collec ion in his s udy was conduc ed by in e iew by asking pe sonal
ques ions using ques ionnai es (Pe sonali y Ques ionnai es). The da a we e collec ed
using closed ques ionnai e i.e. a ques ionnai e used o ob ain da a on ma ke o ien a ion,
inno a ion, en ep eneu ial o ien a ion, compe i i e ad an age in i s e o s o imp o e
ma ke ing pe o mance. The ques ions in he lis o ques ions we e p epa ed by using 1
o 10 scale o ob ain he da a and gi en sco es o he ca ego y o ques ions wi h answe
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623
o s ongly disag ee o s ongly ag ee wi h √ ma k in he selec ed boxes, as exempli ied
as ollows:
Da a Analysis
The da a analysis used in his s udy was S uc u al Equa ion Model (SEM) ope a ed
by AMOS p og am 16. The eason o he use o SEM was because SEM is a se o
s a is ical echniques allowing an a i ma ion o a se ies o ela ionship which is ela i ely
"complex" simul aneously. Acco ding o Fe dinand (2006), s udy modeling h ough SEM
allows a esea che o be able o answe esea ch ques ions which a e eg essi e and
dimensional (i.e. measu ing wha he dimensions o a concep ). SEM can also iden i y he
dimensions o a concep o cons uc ion and a he same ime SEM can also measu e he
deg ee o in luence o ela ionship ac o s which he dimensions will be iden i ied.
Flowcha o Con e sion in o Equa ion
In he nex s ep, he heo e ical model buil in he i s s ep was illus a ed in pa h
diag am which could acili a e he esea che s o ecognize he causali y ela ionship
es ed. The pa h diag am de eloped in his s udy is p esen ed in Figu e 1 wi h indica o s
p esen ed in Table 1.
No es:
X
=
a iable indica o
Z1
=
e o ems on he a iable o cus ome alue
Z2
=
e o ems in he a iable o Posi i e WOM
Figu e 1. The pa h diag am de eloped in his s udy
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624
Table 1. Va iable Indica o s
No.
Va iables
Indica o s
1
Repu a ion
X1
Famous
X2
C edibili y
X3
Repu a ion
X4
Cha ac e is ics
2
Ad e isemen
a ac i eness
X5
Easy- o-unde s and ma e ial con en in he
ad e isemen
X6
Use o a is as comme cials o in e es
X7
Easy- o- emembe Ja gon
X8
A ac i e ad e ising s yle
3
Communi y
E ec s
X9
Rela ion
X10
S yle
X11
App ecia ion
4
Cus ome Value
X12
pe o mance Value
X13
p ice Value
X14
Social alue
5
Wo d-o -Mou h
X15
Happy in sha ing expe iences
X16
Happy in ecommending he p oduc o o he s
o consume
X17
WOM communica ion in ensi y
X18
Con incing o he s o buy Bea B and milk
In he nex s ep, a e he heo e ical model was desc ibed in he lowcha , he
esea che s con e ed he speci ica ion model in o a se ies o equa ions. The equa ions
consis ed o :
a. S uc u al equa ion, his equa ion was o mula ed o exp ess causali y among
a ious cons uc ions, in which he equa ion was:
Endogenous a iables
=
Exogenous a iables + endogenous a iable + e o (z)
In his s udy he con e sion o s uc u al equa ion models o o m he ollowing:
Cus ome Value
=
β1Repu a ion + β2 Ad e ising a ac ions + β3
Communi y E ec s + z1
Posi i e Wo ds o Mou h
=
β4 Cus ome Value + z2
b. The equa ion speci ica ion o measu emen model (measu emen model) in he
speci ica ion i was de e mined which a iable measu e wha a iable, and de e mine a
se ies o ma ices showing co ela ions among a iables hypo hesized.
Resul s and Discussion
S uc u al Equa ion Model
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Based on Figu e 2, i could be seen ha epu a ion a ec ed cus ome alue o 0.4,
ad e ising a ac ion a ec ed cus ome alue o 0.23 and communi y e ec a ec ed
cus ome alue o 0.4. Based on he esul s o obse a ions on he image on he ull model
analysis g aph i could be shown ha he model me he c i e ia o i , i was cha ac e ized
by he alue o he calcula ion esul mee ing he c i e ia o easible o ull model.
Fu he mo e he model me he c i e ia o i ; i was cha ac e ized by he alue o he
calcula ion esul s mee ing he c i e ia o easible o ull model. The es esul s o he ull
model we e summa ized in Table 2. The calcula ion esul s o chi-squa e es on he ull
model ob ained chi-squa e alue o 154.579 which was s ill below he chi-squa e able
o 128 deg ees o eedom on5%le el o signi ican as much as 155.405. The p obabili y
alue was 0.055 in which hese was s ill abo e he alue o 0.05 as well as o he c i e ia
mos ly ha ing me he alue well. These esul s showed ha he o e all models mee he
c i e ia o i model. Besides he abo e c i e ia, he obse ed indica o o epu a ion,
ad e isemen a ac i eness, communi y e ec , cus ome alue and posi i e wo ds o
mou h we e alid because hey had alues abo e 0.5 so ha no one obse ed indica o s
which was d opped (disca ded).
Figu e 2. The Resul s o Tes ing S uc u al Equa ion Models
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Table 2. The Full Model Tes Resul s
C i e ia
Cu o Value
Resul
E alua ion
Chi-Squa e
155.405
154.579
Good
P obabili y
> 0.05
0.055
Good
GFI
0,90≤GFI≤1
0.866
Ma ginal
AGFI
0,90≤AGFI≤1
0.821
Ma ginal
TLI
0,95≤TLI≤1
0.977
Good
CFI
0,95≤CFI≤1
0,981
Good
CMIN / DF
<2.00
1,208
Good
RMSEA
<0.08
0,044
Good
No es: ÷ 2 wi h d : 128; p: 5% = 155.405
Based on Figu e 2 and Table 2 i was showed ha each la en a iable o me indica o
showed esul s mee ing he c i e ia i.e. CR alue was abo e 1.96 wi h P which was less
han 0.05 and lambda alue o loading ac o was g ea e han 0.5. These esul s could be
said ha he la en a iable o me indica o s signi ican ly we e he indica o o la en
ac o s o med. Thus, he model used in his s udy may be accep ed. The esul s o weigh s
eg ession o s uc u al equa ion modeling analysis is p esen ed in Table 3.
Table 2. Weigh s Reg ession o S uc u al Equa ion Modeling Analysis
Pa hs
Es ima e
SE
CR
P
Label
Cus ome alue<--- Repu a ion
.370
.098
3767
***
pa _11
Cus ome alue <--- ad e isemen
a ac i eness
.236
.097
2422
.015
pa _12
Cus ome alue <--- communi y e ec
.378
.099
3,803
***
pa _13
Posi i e WOM <--- Cus ome alue
.822
.103
7995
***
pa _14
X1 <--- Repu a ion
1,000
X2 <--- Repu a ion
1,028
.092
11 222
***
pa _1
X3 <--- Repu a ion
1,029
.098
10 548
***
pa _2
X4 <--- Repu a ion
.800
.091
8746
***
pa _3
X5 <--- ad e isemen a ac i eness
1,000
X6 <--- ad e isemen a ac i eness
.879
.085
10 327
***
pa _4
X7 <--- ad e isemen a ac i eness
.985
.080
12 299
***
pa _5
X8 <--- ad e isemen a ac i eness
.833
.078
10 647
***
pa _6
X9 <--- communi y e ec
1,000
X10 <--- communi y e ec
1,065
.093
11 425
***
pa _7
X11 <--- communi y e ec
1,057
.093
11 342
***
pa _8
X12 <--- Cus ome alue
1,000
X13 <--- Cus ome alue
.906
.105
8616
***
pa _9
X14 <--- Cus ome alue
.967
.108
8953
***
pa _10
X15 <--- Posi i e _WOM
1,000
X16 <--- Posi i e_WOM
1,052
.096
10 970
***
pa _16
X17 <--- Posi i e_WOM
.922
.101
9092
***
pa _17
X18 <--- Posi i e_WOM
.933
.093
10 081
***
pa _18
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Repu a ion E ec s on Cus ome Value
F om he s udy done i can be concluded ha he i s hypo hesis s a ed "Repu a ion
a ec ed posi i ely on cus ome alue" is accep able. I can be concluded ha he
hypo hesis composed in his s udy has he same jus i ica ion and s eng hens he p e ious
s udy, such as he s udy done by Ka ashpo and Kashani (2006). The indica o s o
epu a ion we e amous; c edibili y; epu a ion; and cha ac e is ics. While cus ome alue
was o med om indica o s: pe o mance alue (Bea B and Milk had a good
quali y); p ice alue ( he alue was ob ained om he expense cos s); social alue ( he e
was mo e app ecia ion when consuming Bea B and Milk). The indica o s ob ained based
on he e iew o li e a u es and hen hey we e de eloped and adap ed o he
ci cums ances exis ing o Bea B and Milk. F om he es esul s h ough SEM analysis
ools and loading ac o alue ob ained, i could be seen ha he indica o amous and
c edibili y we e he mos dominan indica o s o epu a ion. These mean ha he ame
and eliabili y o Bea B and Milk we e he keys in de e mining he high epu a ion alue
o Bea B and Milk. In his s udy o Bea B and Milk i was showed ha he mo e amous
and no easily b oken Bea B and Milk, he be e epu a ion o he company. O i could
be said ha i Bea B and Milk was amous by i s high quali y and no easily damaged,
cus ome s would conside ha Bea B and Milk had a good epu a ion.
E ec s o Ad e isemen A ac i eness on Cus ome Value
F om he s udy done i can be concluded ha he second hypo hesis s a ed ha
"Ad e isemen a ac i eness posi i ely a ec ed on cus ome alue" is accep able. The
hypo hesis o mula ed in his s udy showed ela i ely simila esul s and in line wi h wha
had been o mula ed by he p e ious s udies such as: Si gy and Joha (1992). The
indica o s o ad e isemen a ac i eness we e easy- o-unde s and ad e isemen
ma e ial con en , use o celeb i ies as in e es ing comme cials, easy- o- emembe ja gon
o Bea B and Milk, a ac i e ad e isemen s yle. While cus ome alue was o med
om he indica o s: pe o mance alue (Bea B and Milk had a good quali y); p ice alue
( he alue was ob ained om he expense cos s); and social alue ( he e was mo e
app ecia ion when consuming Bea B and Milk). The indica o s ob ained based on he
e iew o li e a u es and hen hey we e de eloped and adap ed o he ci cums ances
exis ing o Bea B and Milk. F om he es esul s h ough SEM analysis ools and loading
ac o alue ob ained, i could be seen ha easy- o-unde s and ad e isemen ma e ial
con en indica o was he mos dominan indica o o ad e isemen a ac i eness. I
mean ha easy- o-unde s and ad e isemen ma e ial con en indica o was he key alue
in de e mining he ad e isemen a ac i eness o Bea B and Milk ad. In his s udy o
Bea B and Milk i was showed ha he be e ad e isemen ma e ial con en alue o
Bea B and Milk, he easie in c ea ing ad e isemen a ac i eness. This ga e
unde s anding ha he eliabili y o he employees o PT Nes le Indonesia in p o iding
p oduc in o ma ion h ough ad e isemen was easily unde s ood by cus ome s. By
p o iding clea in o ma ion h ough ad e isemen and wi hou mis ake, cus ome s would
judge ha Bea B and Milk had a high ad e isemen a ac i eness.
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628
E ec s o Communi y E ec on Cus ome Value
F om he s udy done i can be concluded ha he hi d hypo hesis s a ed "Communi y
e ec posi i ely a ec ed on cus ome alue" is accep able. I shows ha he hypo heses
de eloped in his s udy a e ully consis en and in acco dance wi h wha had been ou lined
by he p e ious esea che s as Joo (2007). The indica o s o communi y e ec s consis o
ela ion (indica ing ela ionships wi h o he people), s yle ( he undamen al and dis inc
exp ession appea ing in human li e) and app ecia ion. While cus ome alue was o med
om he indica o s: pe o mance alue (Bea B and Milk had a good quali y); p ice alue
( he alue was ob ained om he expense cos s); and social alue ( he e was mo e
app ecia ion when consuming Bea B and Milk). The indica o s ob ained based on he
e iew o li e a u es and hen hey we e de eloped and adap ed o he ci cums ances
exis ing o Bea B and Milk. F om he es esul s h ough SEM analysis ools and loading
ac o alues ob ained i could be seen ha he ela ion indica o is he mos dominan
indica o o he communi y e ec . I mean ha ela ionship was he key in de e mining
he high e ec on he communi y e ec o Bea B and Milk. The be e ela ionship alue
o Bea B and Milk, he be e communi y c ea ed. O i could be said ha cus ome s
(Bea B and Milk consume s) would acqui e a b oad ela ionship when consuming Bea
B and Milk.
E ec o Cus ome Value on Posi i e WOM
F om he s udy done i can be concluded ha he ou h hypo hesis s a ed "cus ome
alue posi i ely a ec ed on Posi i e WOM" is accep able. I can be concluded ha he
hypo hesis composed in his s udy has he same jus i ica ion and s eng hens he p e ious
s udies such as s udies ca ied ou by Budiman (2003); Ola u e al. (2008) and Ka ashpo
and Kashani (2006). The indica o s o Posi i e WOM consis ed o : Happy in sha ing
expe iences; Happy ecommending p oduc s o o he s; WOM communica ion in ensi y
and Con incing o he people o buy. While cus ome alue was o med om he
indica o s: pe o mance alue (Bea B and Milk had a good quali y); p ice alue ( he
alue was ob ained om he expense cos s); and social alue ( he e was mo e app ecia ion
when consuming Bea B and Milk). The indica o s ob ained based on he e iew o
li e a u es and hen hey we e de eloped and adap ed o he ci cums ances exis ing o
Bea B and Milk. F om he es esul s h ough SEM analysis ools and loading
ac o alue ob ained, i could be seen ha indica o s o pe o mance alue and social
alue we e he dominan indica o o cus ome alue. I implied ha pe o mance alue
and social alue we e impo an and as he key alues in de e mining he high cus ome
alue o Bea B and Milk. This ga e unde s anding ha pe o mance alue and social
alue we e needed by cus ome s (Bea B and Milk consume ) and by he exis ence o
pe o mance alues and social alue ob ained when consuming Bea B and Milk, i could
imp o e cus ome alue on Bea B and Milk. F om posi i e WOM a iable om he es
esul s h ough SEM analysis ools and loading ac o alues ob ained i could be seen
ha indica o o happy in sha ing expe iences was he mos dominan indica o o Posi i e
WOM. This ga e unde s anding ha cus ome s we e mo e happy sha ing expe iences
wi h o he s when consuming Bea B and Milk so ha hey could lis en o pleasan
expe iences di ec ly om o he cus ome s hus indi ec ly his had c ea ed Posi i e WOM.
