CORRELATION BETWEEN CUSTOMER

SATISFACTION AND BRAND LOYALTY OF

REXONA

By

Friza Yuniva Rachman

011200700010

A thesis presented to the

Faculty of Economics President University

in a partial fulfillment of the requirements for

Bachelor Degree in Economics Major in Management

September 2010

PANEL OF EXAMINERS

APPROVAL SHEET

The panel of Examiners declare that the thesis entitled “Correlation

between Customer Satisfaction with Brand Loyalty of Rexona” that was submitted by Friza Yuniva Rachman majoring in

International Business from the Faculty of Economics was assessed

and approved to have passed the Oral Examinations on September 16,

2010.

Chairman - Panel of Examiners

Ir. Erni Hutabarat, MBA

Examiner I

Dr. Jozef Raco

Examiner II

Ir. B.M.A.S. Anaconda B.,MT

DECLARATION OF ORIGINALITY

I declare that this thesis, entitled “Correlation between Customer

Satisfaction toward Brand Loyalty of Rexona” 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, 31 August 2010

Friza Yuniva Rachman

ABSTRACT

This research is about identified and analyzes the relationship between

components of customer satisfaction, which are product quality, price, and service

quality, with brand loyalty of Rexona. Business competitions faced by the

companies are getting tight than ever. Because of that, company should have a

good marketing strategy and also have to maintain their customers in order to be

more satisfied with their products, so consumers will be loyal with the product.

Rexona is a leader in deodorant market in Indonesia, which is also one of

the popular brand of Unilever. Rexona develop rapidly and many people use it.

Because of that, the researcher wants to know what factors which related with the

development of Rexona. The researcher tries to analyze between customer

satisfaction with brand loyalty and find the correlation between these two

variables. The researcher believes that customer satisfaction has strong impact to

make consumers become loyal to the brand of the company.

In doing this research, the researcher uses quantitative method, with

primary data which is obtained from the questionnaire. This research is processed

using SPSS 17 to find the regression and correlation between customer

satisfaction (consists of product quality, price, and service quality) with brand

loyalty.

This research has found that there is a strong relationship between product

quality and price with brand loyalty of Rexona. It means that the customers of

Rexona have already satisfied with the product quality of Rexona, which is

balance with the price. So they will not think twice about the price although it is

rather expensive compare with another deodorant, because they have already

satisfied with the quality of the product. This research has also found that there is

no relationship between service quality with brand loyalty of Rexona. It means

that service quality is not affect brand loyalty. It is because of the customers of

Rexona still not satisfied with the service quality, may be because the service still

not good enough, or they prefer to see the product quality before they buy the

product.

From the results of the research, it is suggested for Rexona to maintain the

quality of product and price, and try to make it balance. Rexona should improve

service quality by adding other variations, such as fragrance that more fresh than

before, unique and more practical forms which appropriate with the needs of

consumers, in order that the consumers are more interested to buy Rexona.

Besides that, Rexona also should be more satisfying the consumer needs and more

socialized their product through media or events.

ACKNOWLEDGEMENT

First of all, I want to say thank God Almighty, Allah SWT for all of His blessing,

so I can finish and complete this thesis with title “Correlation between Customer

Satisfaction with Brand Loyalty of Rexona”, as one of requirements to accomplish

Bachelor Degree for Faculty of Economics in President University.

Through this thesis, I would like to give mu special thanks for people who have

supported me, give advices and guidance, from the first time I start this thesis

until finish it:

1. My beloved Mom and Dad, sisters (Farah and Febby), million thanks for

everything, your prayers, love, and affection that no cease, and support

morally and materially in the preparation of this thesis.

2. My thesis advisors, Mr. Jozef Raco and Mr. Bruno Rumyaru, thank you

very much for spent your time to give me advices and guidance during my

thesis.

3. My boyfriend, Haris Muzakir, thank you for your support and motivation

for me in doing this thesis. Hope the best result for both of us.

4. All my friends, especially at President University, thank you for your

participation in filling my questionnaires, and also for teaching and

sharing knowledge. Also thank you very much for Richard and Tom, who

shares the statistical matter with me.

5. For Unilever, especially in Corporate Communication Department, thank

you for giving me information about Rexona.

6. For other supporting parties and all people who cannot be mentioned one

by one, thank you very much for your support.

Friza Yuniva Rachman

TABLE OF CONTENTS

PANEL OF EXAMINERS APPROVAL SHEET.................................................i

DECLARATION OF ORIGINALITY..................................................................ii

ABSTRACT.......................................................................................................... iii

ACKNOWLEDGEMENT....................................................................................iv

TABLE OF CONTENTS.......................................................................................v

LIST OF TABLES................................................................................................vii

LIST OF FIGURES..............................................................................................viii

I. INTRODUCTION............................................................................................ 1

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

1.2 Company Profile..................................................................................... 2

1.2.1 Rexona............................................................................................. 2

1.2.2 History of Rexona............................................................................ 3

1.2.3 Rexona’s Innovations...................................................................... 3

1.3 Problem Identified...................................................................................3

1.4 Statement of the Problem.........................................................................4

1.5 Research Objective..................................................................................5

1.6 Significance of Study..............................................................................5

1.7 Theoretical Framework............................................................................6

1.8 Scope and Limitations of the Study.........................................................6

1.9 Assumptions and Hypothesis...................................................................7

1.10 Definition of Terms................................................................................7

II. LITERATURE REVIEW.................................................................................9

2.1 Customer Satisfaction..............................................................................9

2.1.1 The Purpose and Benefits of Measuring Customer Satisfaction......10

2.1.2 Element of Customer Satisfaction....................................................11

2.1.3 Factors that support Customer Satisfaction......................................12

2.2 Brand Loyalty..........................................................................................13

2.2.1 Definition of Brand, Loyalty, and Brand Loyalty............................13

2.2.2 Characteristics of Brand Loyalty on Consumer...............................15

2.2.3 Levels of Brand Loyalty...................................................................16

2.2.4 Factors that Affected Brand Loyalty................................................19

2.3 Relationship between Customer Satisfaction and Brand Loyalty...........20

III. METHODOLOGY.........................................................................................23

3.1 Research Method....................................................................................23

3.2 Research Framework...............................................................................23

3.2.1 Operational Variables Definition.....................................................24

3.3 Research Time and Place........................................................................25

3.4 Research Instrument...............................................................................26

3.4.1 Data Collection Tools......................................................................26

3.4.2 Technique Measurement..................................................................26

3.4.3 Data Measurement for Questionnaire..............................................27

3.5 Sampling Design.....................................................................................28

3.5.1 Population and Sample....................................................................28

3.5.2 Measurement of Pretest...................................................................30

3.5.2.1 Validity...................................................................................30

3.5.2.2 Reliability................................................................................30

3.6 Data Analysis..........................................................................................30

3.6.1 Statistics Implementation................................................................31

3.7 Limitations..............................................................................................32

IV. ANALYSIS OF DATA AND INTERPRETATION OF RESULTS............33

4.1 Data Result of Validity and Reliability Testing......................................33

4.1.1 Data Result of Validity....................................................................33

4.1.2 Data Result of Realiability...............................................................36

4.2 Research Objectives Description............................................................38

4.2.1 Type of Rexona...............................................................................38

4.2.2 Gender.............................................................................................39

4.2.3 Age..................................................................................................40

4.2.4 Expenses per Month........................................................................41

4.3 Analysis of Data.....................................................................................42

4.3.1 Coefficient of Correlation and Determination.................................42

4.3.2 F-test................................................................................................43

4.3.3 t-test.................................................................................................44

4.3.4 Multiple Regression Model.............................................................44

4.4 Summary of Results...............................................................................45

4.5 Interpretation of Results.........................................................................46

4.5.1 Product Quality...............................................................................46

4.5.2 Price.................................................................................................46

4.5.3 Service Quality................................................................................47

V. CONCLUSIONS AND RECOMMENDATIONS.........................................48

5.1 Conclusions............................................................................................48

5.2 Recommendations..................................................................................50

5.2.1 Implication for the Institution Research..........................................50

5.2.2 Implication for Further Research....................................................51

REFERENCES...................................................................................................52

LIST OF TABLES

Table 4.1. Validity of Customer Satisfaction.......................................................34

Table 4.2. Validity of Brand Loyalty....................................................................35

Table 4.3. Reliability of Customer Satisfaction....................................................36

Table 4.4. Reliability of Brand Loyalty................................................................37

Table 4.5. Model Summary...................................................................................43

Table 4.6. F-test.....................................................................................................43

Table 4.7. t-test......................................................................................................44

LIST OF FIGURES

Figure 1.1. Relationship and Correlation between Customer Satisfaction with

Brand Loyalty........................................................................................................6

Figure 2.1. Factors of Customer Satisfaction........................................................12

Figure 2.2. Characteristics of Brand Loyalty........................................................16

Figure 2.3. The Loyalty Pyramid according to Aaker in Moisescu......................18

Figure 3.1. The Research Framework...................................................................23

Figure 3.2. Measurement of Independent Variables and Dependent Variable.....27

Figure 3.3. Population and Sample.......................................................................29

Figure 4.1. Type of Rexona..................................................................................38

Figure 4.2. Gender................................................................................................39

Figure 4.3. Age.....................................................................................................40

Figure 4.4. Expenses per Month...........................................................................41

APPENDICES

APPENDIX 1 Additional Information about Rexona

APPENDIX 2 Output from SPSS

APPENDIX 3 Questionnaire

CHAPTER I

INTRODUCTION

1.1 Background of the study

Nowadays economic growth and population growth have increase. This causes the

increasing of the necessities of life. At the previous time, the most important need

for humans to be fulfilled was primary need, but by the time goes on, secondary

and tertiary needs also important to be fulfilled. Primary need is natural or

unlearned needs or requirements determined by factors innate to a person or his or

her environment, such as food, security, shelter, etc. Secondary need is desires

and wants, such as for entertainment and leisure, which become important when

primary needs have been reasonably satisfied.

Economic and population growth also impacted in the business world. The

business competitions faced by companies are getting tight than ever. It makes the

companies have strong competition in order to survive in the market. They must

be able to compete with other companies that produce similar products in order to

survive to win the competition. Therefore, the companies must have a good

marketing strategy in order that they able to survive and develop their businesses

become more widespread. The marketing strategy that the company needs is

strategy that able to create, maintain, and improve customer satisfaction to the

next level.

Besides the company must have good marketing strategy in order to market their

products and businesses, company must also have customers who are loyal to

their products. The loyal customers will greatly assist them in competing in the

market. Loyal customers can be obtained through customer satisfaction. If the

customer satisfied with the quality of the products, they will repeat to purchase,

use the product, and tell others about their experiences in using the product; and

thus, the customers become more loyal with the product. If they have already

satisfied and loyal, how much the price of the product is, they will still buy it,

because they will not see from the price, but from the quality and service.

Modernization makes education level and public awareness about clean living

patterns continue to increase. This makes the deodorant market is growing

rapidly. Almost every people, male or female, from the various walk of life, using

deodorant as part of their daily routine. Therefore, many deodorant producers use

this opportunity to be able to get the market share; one of deodorant company who

did it is Rexona. Rexona is one of Unilever’s products, the giant of consumer

goods, which holds a great contribution in the deodorant market. Nowadays,

Rexona is the market leader in deodorant market.

A lot of activities require people always to appear confidently. Self confidence is

very important to support all activities and to build relationship with others.

Therefore, Rexona exists to assist people in solve the confidence problems,

especially body odor problem, because body odor problem is very influential in

running the activities and connecting with other people. In addition, Rexona also

come with adapting the modern needs, such as by presenting the practical

deodorant, easy to be grabbed and easy to be carried everywhere, in order that the

consumers can use it whenever and wherever.

1.1 Company Profile

1.2.1 Rexona

Unilever, the giant of consumer goods, has many brands that most of them are

market leader in its own market. One of popular brand from Unilever is Rexona.

Rexona is the definite leader in Indonesian deodorant market because of one clear

reason: It never lets you down. Rexona has the perfect product to keep underarm

dry and smelling great.

1.2.2 History of Rexona

The Rexona brand was originally invented almost a century ago, in 1908 to be

exact, by an Australian pharmacist couple. Since then, the deodorant technologies

that Rexona offers have advanced by leaps and bounds.

The newest technology from Rexona uses microcapsules to deliver unprecedented

efficacy. Microcapsules dissolve in sweat and release perfume when your body

heats up, ensuring superior staying power compared to other deodorants.

1.2.3 Rexona’s Innovations

1. Rexona offers multiple ranges with antiperspirant technology.

Antiperspirant works by forming a gel-like substance on top of our sweat

glands, reducing the amount of sweat drastically. Once we stop using

antiperspirant, the gel-like substance will eventually be released from our

skin, and we start to sweat again.

2. In 2006, Rexona launched new formulation for its deodorants containing

Activreserve® that work in synch with your body. The more you sweat,

the harder Activreserve® work in maintaining your underarms dry and

odorless.

3. In 2007, Rexona launched the new Rexona Men Power variant. It offers

men more protection than they will ever need, with more than a million

active molecules in each product.

1.3 Problem Identified

Customer satisfaction is one of the most important factors that influence brand

loyalty. If the customer satisfied with the product, there will be tendency that they

will repeat to purchase that product. They will not consider about the price

anymore because they already believe in the quality of the product itself. If the

customers already believe in the quality, automatically they will be loyal with the

product.

As we know, Rexona has been already in the market for a long time, and it is also

the market leader in deodorant market, especially in Indonesia. The researcher

believes that measurement of brand loyalty is very important to maintain and

improve brand loyalty of Rexona. Besides that, the researcher also want to

analyze the relationship between customer satisfaction with brand loyalty of

Rexona, because the failure in maintaining and analyzing customer satisfaction

and brand loyalty can decrease sales of the products and the harm of the brand.

1.4 Statement of the Problem

This research is meant to identify and analyze, in order to maintain and improve

brand loyalty of Rexona; prove the relation; measures the relation of customer

satisfaction which consists of product quality, price, and service quality; with

brand loyalty of Rexona.

The question to be answered in this research is: is there any relationship between

product quality with brand loyalty?, is there any relationship between price with

brand loyalty?, and is there any relationship between service quality with brand

loyalty? The rational in this research is on how optimizing the customer

satisfaction to maintain and improve the brand loyalty of Rexona.

So, the problem statement of this research is:

Is there any relationship between product quality, price, and service

quality with brand loyalty of Rexona?

1.5 Research Objective

The objective of this research is:

To identify and analyze the relationship between product quality, price, and

service quality toward brand loyalty of Rexona. This research will evaluate

whether customer satisfaction has strong relationship with brand loyalty. The

result of this research is important to provide Unilever, especially the marketing

of Rexona, as an additional information and research to implement an effective

marketing strategy to develop business of Rexona.

1.6 Significance of Study

Based on the objective of the research, this research is meant to be able to give

benefits and contribution both academic and professional practice:

1. For researcher

As the requirement of completing education, can increase the knowledge

in marketing management disciplines, and to train the researcher to be able

to apply the theories derived from the lectures.

2. For Unilever

This research could provide a new image for the company to the

consumer’s sensitivity and variable of consumer loyalty’s level to a brand,

in order that can be used as a material consideration in making decisions

for the present and future. It is also as an additional reference in

formulating and implementing better marketing strategy that can maintain

and enhance brand loyalty.

3. For the university

This research can be used as the treasury in particular case study of

marketing research and as a comparison and reference materials for further

research.

1.7 Theoretical Framework

The researcher use this theoretical framework, which explain about the

relationship and correlation between customer satisfaction with brand loyalty.

From the theoretical framework on figure 1.1 below, the researcher describes

customer satisfaction into more specific. There are three components of customer

satisfaction, that is also as independent variables in this research, which are

product quality, price, and service quality. These three components have

relationship each other with brand loyalty, which is as dependent variable in this

research.

Figure 1.1. Relationship and Correlation between Customer Satisfaction with

Brand Loyalty

1.8 Scope and Limitations of the Study

The research is case study, in which the object of this research is university

student, male and female, and will be limited especially for President University

students who use Rexona. This study will focus on analyzing and measuring

brand loyalty and the relationship between customer satisfactions with brand

loyalty of Rexona.

Product Quality

Price

Service Quality

Brand Loyalty

1.9 Assumptions and Hypothesis

Hypothesis is an estimate or references that were formulated and accepted for a

while and that could explain the facts observed or conditions observed and used as

a guide for the next steps.

Null Hypothesis

1. There is no relationship between product quality with brand loyalty

of Rexona

2. There is no relationship between price with brand loyalty of

Rexona

3. There is no relationship between service quality with brand loyalty

of Rexona

Alternate Hypothesis

1. There is a relationship between product quality with brand loyalty

of Rexona

2. There is a relationship between price with brand loyalty of Rexona

3. There is a relationship between service quality with brand loyalty

of Rexona

1.10 Definition of Terms

Customer Satisfaction: a measure of how products and services supplied by a

company meet or surpass customer expectation.

Product quality : the collection of features and characteristics of a product that

contribute to its ability to meet given requirements.

Price : the quantity of payment or compensation given from one party to another

in return for goods or services.

Service quality : service quality is having vast meaning. And it is in the customer

mind what he wants and it can be defined as expectations of

customer towards the service or product.

Brand Loyalty: extent of the faithfulness of consumers to a particular brand,

expressed through their repeat purchases, irrespective of the

marketing pressure generated by the competing brands.

CHAPTER II

LITERATURE REVIEW

This chapter will discuss the theories about customer satisfaction, brand loyalty,

and the relationship between customer satisfaction and brand loyalty. These

theories will be used for identifying The Correlation between Customer

Satisfaction and Brand Loyalty of Rexona.

2.1 Customer Satisfaction

In a decision process, the consumer does not stop until the process of

consumption. Consumers will conduct the evaluation process of consumption that

has been done. From the evaluation process, it can be known whether consumers

are satisfied or not satisfied with the product that has been consumed. Before we

explain about customer satisfaction, we have to know the definition about

consumer and satisfaction.

Consumer is a term used to describe two different kinds of consumer entities:

individual and organization consumers. (Schiffman and Kanuk, 2007, pg.4)

Satisfaction is the word from the Latin, consists of satis which means enough, and

facere which means to do. So the product and service that can satisfy are the

product and service that are able to provide something sought by consumers to

sufficient level.

In another definition, satisfaction is person’s feelings of pleasure or

disappointment that result from comparing a product’s perceived performance (or

outcome) to their expectations. (Kotler, 2009). Satisfaction can be defined as an

attitude-like judgment following a purchase act or a series of consumer product

interaction. Most studies are based on the theory that the confirmation /

disconfirmation of pre-consumption product standard is the essential determinant

of satisfaction. This means that customers have certain service standards in mind

prior to consumption (their expectations), observe service performance and

compare it to their standards, and then form satisfaction judgments based upon

this comparison.

From the definition above about consumer and satisfaction, we can define that

customer satisfaction is a short-term emotional reaction to a specific service

performance (Lovelock and Wright, Pg.87). According to Mowen and Minor

(1999), customer satisfaction is defined as the overall attitude consumers have

toward a good or service after they have acquired and used it. It is a post choice

evaluative judgment resulting from a specific purchase selection and the

experience of using/consuming it.

From all the definitions above, it can conclude that customer satisfaction is

Attitude, judgment and emotional response that indicated by the consumer after

purchasing / consumption process derived from a comparison between the actual

performance of products and its expectation, with evaluation of the consuming

experience of a product.

2.1.1 The purpose and benefits of measuring customer satisfaction

In the research, there are some purposes of measuring customer satisfaction,

which are:

Identify customer’s purpose (importance ratings), which is aspects those

are important for the customers and affect whether they are satisfied or

not.

Determine level of customer satisfaction to the organizational performance

on the important aspects.

Compare the level of customer satisfaction toward the company with

customer satisfaction level against other organizations, either direct or

indirect competitor.

Indentify PFI (Priorities for Improvement) through gap analysis between

score of importance with satisfaction.

Measure customer satisfaction index can be reliable indicator in

determining the progress of development from time to time.

Customer satisfaction has potential to provide some specific benefits include: (1)

has positive impact on customer loyalty; (2) potential to become source of future

income, especially through repeat the purchase, cross-selling, and up-selling; (3)

reduce future income, especially costs of marketing communication, sales, and

customer service; (4) reduce volatility and risk with respect to prediction of future

cash flow; (5) increase price tolerance, especially customer’s willingness to pay

premium price and customers tend not easily tempted to switch; (6) increase

recommendation of positive word of mouth; (7) customers tend to be more

negative on product-line extensions, brand extensions, and new add-on services

offered by company; (8) increase company’s bargaining power relative to the

network suppliers, business partners, and distribution channels.

2.1.2 Element of Customer Satisfaction

According to Wilkie in Manurung, there are 5 elements of customer satisfaction:

1. Expectations

Understanding of customer satisfaction is built during pre-purchase phase

through decision making process which has been done by consumers.

Before making a purchase, consumers develop expectation or belief about

what they expect from the product when they use that product. This

expectation will be continued to post-purchase phase, when they re

consume that product actively.

2. Performance

During consume a product, consumers aware of the benefit of actual

product and receive the product performance as an important dimension

for the consumer.

3. Comparison

After consuming, there is some hope of pre-purchase and perception of

actual performance that ultimately consumers will compare those two

components.

4. Confirmation/disconfirmation

The result of these comparisons will yield confirmation of expectation,

which is, when expectation and performance are at the same level; or will

result disconfirmation of expectation, which is, if the actual performance is

better or less than the expected level.

5. Discrepancy

If the performance level is not same, discrepancy indicates how the

differences between performances level with expectation. For negative

disconfirmation, which is when actual performance is below the level of

expectation, a wider gap will cause high level of dissatisfaction.

2.1.3 Factors that support Customer Satisfaction

According to Irawan (2002), there are five (5) factors that support the customer

satisfaction, which are:

Figure 2.1. Factors of Customer Satisfaction

Product

Quality

Price Service

Quality

Emotional

Factor

Cost &

Convenience to get

the product/service

Factors of Customer

Satisfaction

1. Product quality

Customer will satisfy if after buy and use the product, it has good quality.

2. Price

For the sensitive customer, cheap price is the important source of

satisfaction because they will get the high value for money. For retail

industry, price component is very important and it has big contribution for

satisfaction.

3. Service Quality

Service quality is much related with three things, which are system,

technology, and men. Men factor has 70% contribution. Attitude and

behavior formation that along with the company’s desire to create is not an

easy work. Based on ServQual concept, service quality has five

dimensions; reliability, responsiveness, assurance, empathy, and tangible.

4. Emotional Factor

Customer satisfaction can arise when customers use product that has good

brand image. Pride, confidence, symbol of success, part of the important

people and so forth are examples of emotional value that underlie

customer satisfaction.

5. Cost and convenience to get the product or service

Customers will be more satisfied if it is easy, comfortable, and efficient in

getting the product or service.

2.2 Brand Loyalty

2.2.1 Definition of Brand, Loyalty, and Brand Loyalty

Brands serve several valuable functions. For customers, brands can simplify

choice, promise a particular quality level, reduce risk, and/or engender trust.

Brands are built on the product itself, the accompanying marketing activity, and

the use (or non-use) by customers as well as others. Brands play an important role

in determining the effectiveness of marketing efforts such as advertising and

channel placement.

Prentice Hall’s Dictionary for “Manajemen dan Pemasaran” describes brand as:

"A name, term, signs of symbol, design, or a combination of these things which

are intended to identify products or services of one seller or group of sellers and to

differentiate it from other competitors' products or services."

Brand contains of promise to provide features, benefits, or services to the buyers

consistently. Brand is more than just a guarantee of quality because there are six

dimensions inside, as follows:

1. Product Attribute

For example: quality, prestige, resale value, design, etc.

2. Benefit

Although a brand carries a number of attributes, actually consumers buy

the benefit of the product. In this case, brand attributes are needed to be

translated into the functional or emotional benefits.

3. Value

Brand also stated something about the value of the producer. Mercedes

stated that its product is a high performance, secure, prestigious, and so

forth. Therefore, Mercedes producers also achieve high value in the eyes

of society.

4. Culture

Brand also reflects a certain culture.

5. Personality

Specific product often uses personality of famous person to sustain its

brand product. Rexona used Shandy Aulia to become Brand Ambassador

for Rexona Teens in accordance with her personality as cheerful teenager.

6. User

Brand indicates the type of consumers who buy or use the products.

Loyalty is defined as non random purchased expressed over time by some

decision making unit (Griffin in Hurriyati). Loyalty is focused on something that

is shown by a routine purchasing based on taking decision.

From the explanation about brand and loyalty above, we can combine both of it

and will get definition of brand loyalty, which is a measure of the attachment that

a customer has to a brand (Aaker in Handayani). Marthin and Semuel (2007)

stated that brand loyalty is real commitment in repurchasing special brand.

Brand loyalty can be defined as a consumer’s positive attitude towards a brand.

Consumer has a strong desire to repurchase the same brand in the present and

future. Strong desire is proved by always buying the same brand. Brand loyalty is

closely related to consumer satisfaction. Customer satisfaction’s level will affect

brand loyalty’s degree of someone (Sumarwan, 2004).

In brand loyalty, consumers who are loyal to a brand will not easily move their

purchasing to other products, whatever happened to that brand. However, brand

loyalty is different with repeat purchasing behavior. Repeat purchasing behavior

is an act of repeat sales in a product or brand that is influenced more by habit. In

brand loyalty, repeat action of purchasing a brand is influenced by loyalty to the

brand.

From the definition above, we can conclude that brand loyalty is strong

commitment to subscribe or repurchase a brand consistently in the future. It

represents positive attitude because consumers will be loyal to purchase the same

brand, whatever happens on that brand.

2.2.2 Characteristics of Brand Loyalty on Consumer

According to Giddens in Fajrianti and Farrah, consumers who are loyal to a brand

have characteristics as follows:

1. Has commitment to the brand

2. Willing to pay more to the brand when compared with other brands

3. Would recommended that brand to others

4. There is not consideration in repurchasing that product

5. Always follow the information related with that brand

6. They can become a kind of spokesperson for that brand and they always

develop a relationship with the brand

Figure 2.2. Characteristics of Brand Loyalty

2.2.3 Levels of Brand Loyalty

Brand loyalty has five (5) levels (Martin and Semuel, 2007 )

1. Switcher or Price Buyer

Customer who is on the switcher loyalty level is customer that is at the

most basic level of brand loyalty pyramid. Switcher loyalty customer often

moves to another brand, totally not loyal and not interested in the brands

Has Commitment to the brand

Willing to pay more to the

brand

Would recommended that

brand to others

There is no consideration in

repurchasing that product

Always follow the

information related with

that brand

Always follow the

information related with

that brand

Become spokesperson for

the brand

Characteristics of Brand

Loyalty

that they consume. The characteristic of these customers are buying a

product because the price is cheap or because of other incentives factors.

2. Habitual buyer

Habitual buyer is a routine activity of the consumer in buying a brand,

including the purchase decision making process and liking of the brand.

Customers who are in habitual buyer level can be categorized as a satisfied

customer with the brand that are consumed or at least a dissatisfied

customer in consuming the brand.

3. Satisfied buyer with Switching Cost

At the level of satisfied buyer, customer of the brand will be called

satisfied if the customer consumes the product. Nevertheless, there is

possibility that customer move their purchase to another brand with bear

the switching cost that related with time, money, or performance risk

inherent with customer action to switch the brand.

4. Liking of the brand (Friend of the Brand)

Customers in liking of the brand level are customers who really like the

brand. At this level, there is an emotional feeling related to the brand.

Customer’s feeling is based on the association related with symbol, series

of experience in previous usage, either experience from personal, relatives,

or because of high perceived quality. However, this feeling is often

difficult to be identified and analyzed into something specific.

5. Committed buyer

Commitment is the belief that the product is consumed able to create

communication and interaction among existing customers. At that

committed buyer level, the customer is a loyal customer. Customer has a

pride as a user of a brand and even the brand becomes very important for

the customers in terms of function as well as expression of who the real

customer is. At this level, one of loyalty actualization is shown by

recommendation and promoting the brand to other parties.

Figure 2.3. The Loyalty Pyramid according to Aaker in Moisescu

Explanations:

a) At the first level represents non loyal buyers who are completely

indifferent to brands, each brand being perceived to be adequate if the

price is accepted.

b) The second level includes satisfied or at least not dissatisfied buyers with

no dimension of dissatisfaction sufficient enough to stimulate a change,

but vulnerable to competitors that can create a perceived benefit in the

case of switching.

c) The third level consists of satisfied customers with switching costs (loss of

time, money, or acquired loyalty advantages, performance risks associated

with switching, etc.). Switching incentives from competitors must

compensate the switching costs.

d) The fourth level contains customers who truly like the brand and have an

emotional attachment to the brand, based upon associations such as a

symbol, a set of use experiences, or a high perceived quality. The

emotional attachment’s reason is sometimes just the fact that there has

already been a long term relationship.

e) The fifth level represents committed customers, proud to have discovered

and used the brand, and to whom the brand is very important both

functionally a as an expression of their personality. The value of this

category of customers stays in the impact they have upon others through

their recommendations.

2.2.4 Factors that Affected Brand Loyalty

According to Aaker in Martin and Semuel (2007), there are some factors that

affected brand loyalty:

1. Satisfaction

If customer dissatisfaction to a brand is low, generally customer’s reason

is not enough to switch to consume another brand, except there are strong

interest factors, in order that is very important for the company to gather

information from customers who switch to another brand, which related to

the problems faced by customers.

2. Habitual Behavior

Repurchase only describes repeat of purchasing behaviour to a brand, it

does not reflect consumer’s feeling to that brand.

3. Commitment

The emergence of commitment is caused by brand loyalty. Brand that has

high equity will have large number of customers with high commitment.

The key indicator is the amount of interaction and communication related

with the product. Customer’s liking of the brand will encourage the

customers to purchase the brand. Another indicator is how far the level of

importance of the brand is, include the activity and personality.

4. Liking of the Brand

Liking of the brand, trust, respectful or friendly feeling with the brand

increase warmth in customer’s feeling, so the competitors will be difficult

in attracting customers who already love the brand at this point.

Customers can be just like the brand with reason that cannot be explained

entirely through perceptions and beliefs associated with attributes and

brand. The measure of liking can be reflected through the willingness to

pay higher price to get the brand.

5. Switching Cost

This is an indication of brand loyalty, because generally the cost to switch

brands is expensive and high risk, in order that customers transition will be

low.

2.3 Relationship between Customer Satisfaction and Brand

Loyalty

Customer satisfaction is an attitude, assessment, and emotional response shown by

the customer after the process of purchasing which is derived from impression

comparison against the actual performance of a product and its expectation, and

evaluates consuming experience of a product or service (Wilkie, 1994).

Wilkie (1994), states that there are five elements of customer satisfaction, which

are, (1) Expectations, is customer expectation that was built during pre-purchase

phase; (2) Performance, is how the customer aware and accept the performance of

product; (3) Comparison, is consumer’s comparison that was conducted after

consuming the product; (4) Confirmation/disconfirmation, is the result of

comparison that will produce confirmation of expectation or disconfirmation of

expectation; and (5) Discrepancy, indicates how the differences between level of

performance with expectation is. When actual performance is below the

expectation, the wider gap will lead to the high level of dissatisfaction.

Brand loyalty is consumer preference consistently to make purchase on the same

brand in a specific product or specified service categories (Schiffman and Kanuk,

2004).

Brand loyalty has strong relationship with customer satisfaction. Brand loyalty

directly affects satisfaction with the brand that has accumulated in certain period

as perception of product quality (Mowen and Minor, 2002). Customer satisfaction

level will affect the degree of customer’s brand loyalty, because one of the factors

which influence brand loyalty is customer satisfaction (Schiffman and Kanuk,

2004).

In meeting the needs and wants, consumers will purchase product with certain

brand. Before making a purchase, consumers will develop an expectation or belief

about what they expect from a product, in which the expectation is the quality

standard that will be compared with the real function and product quality. The

expectation which is formed is still in consumer’s mind (cognitive). This

expectation will continue with purchasing / consuming the product.

During consume he product, consumers will feel the real function of product

(actual performance). The actual function which is perceived by consumers is

consumer’s perception of the product quality. This perception is a representation

of what is believed by consumers, which is formed in cognitive and eventually

will develop cognitive loyalty in consumers. After consuming the product,

consumers will compare between their expectations with the function of product.

Through that comparison will be obtained whether the consumers will satisfied or

not satisfied with the product that they consume. Satisfaction indicates positive

attitudes and feelings of the product. If the consumers have positive attitude in the

product, then consumers will develop affective loyalty. Consumers are satisfied

with the product or brand that are consumed or used, will repurchase that product.

The continuing of repurchase of the same product and brand will show customer’s

loyalty to the brand (Sumarwan, 2004).

Generally speaking, loyalty implies satisfaction, but satisfaction does not

necessarily lead to loyalty. Consequently, there is an asymmetric relationship

between loyalty and satisfaction (Gommans, Krishnan, and Scheffold, 2001).

Mittal and Lassar (1998) said that the relationship between brand loyalties with

customer satisfaction is asymmetric, in which consumer who is loyal with a brand,

is satisfied but customer satisfaction is not always lead to brand loyalty.

CHAPTER III

METHODOLOGY

3.1 Research Method

The researcher would use quantitative analysis in doing this research. Quantitative

research on the other hand uses numbers to prove or disapprove a notion or

hypothesis. The process of measurement is central to quantitative research

because it provides the fundamental connection between empirical observation

and mathematical expression of quantitative relationships. Quantitative research

uses data that are structured in the form numbers or that can be immediately

transported into numbers (Ross, 1999; cited in President University 2010).

3.2 Research Framework

No = Rejected

Yes

No = Rejected

Yes

Figure 3.1. The Research Framework

Data Collection

Customer

Satisfaction

Brand

Loyalty

Pre-Test

Validity

Reliability

Questionnaire

Correlation

Use Successive

Interval Method

Software

The framework explain that the researcher using primary data, which should been

collected from questionnaires. The researcher will discuss the correlation between

customer satisfaction (product quality, price, and service quality) and brand

loyalty. After all factors were collected, the researcher does pre-test and check the

validity and reliability of the questionnaires. Before measuring validity and

reliability testing, the data should be transfered first from ordinal to interval value

using Successive Interval Method Software, then input and calculate using SPSS.

If it is not valid and reliable, means that it has to be rejected. If it is valid and

reliable, the researcher should make the real questionnaires and share it to the

respondents, and after that calculate the correlation.

3.2.1 Operational Variables Definition

This research consists of two variables, which are dependent and independent

variables. The independent variable is a variable is included in the research

hypothesis, which affects the dependent variable. The dependent variable is a

variable covered in the research hypothesis, that variability is influenced by other

variables.

Independent variable of this research : customer satisfaction of Rexona

Dependent variable of this research : brand loyalty of Rexona

Customer satisfaction is called as independent variable because it affects brand

loyalty as dependent variable. More and more consumers satisfied with the

product/brand, and then consumers who satisfied will be loyal to that brand. So,

brand loyalty is influenced by the consumer who satisfied with the brand.

Operational definition of consumer satisfaction is an attitude, judgment of the

consumer who consume/use the product/brand, and they feel satisfied of the

product quality, price, and service quality. In this research, the researcher will use

product quality, price, and service quality as the sub-variable of customer

satisfaction (independent variable). The researcher chose factors of customer

satisfaction, because according to Irawan (2002), customer perception toward

quality is the main parameter in determining value to the customer. Besides that,

price is very important and give big contribution toward customer satisfaction.

Product quality and price often cannot create competition benefit in making

customer satisfaction. Because of that, it needs service quality to support those

two factors in creating customer satisfaction. So this source support the researcher

to use the main three factors as the sub-variable of customer satisfaction.

Operational definition of brand loyalty is strong commitment to repurchase a

brand consistently in the future because of their satisfaction to the brand. Brand

loyalty is supported by some sub-variables that are used in this research, which

are commitment to the brand, willing to pay more to the brand, would

recommended that brand to others, there is not consideration in repurchasing the

brand, always follow information related to the brand, and become the

spokesperson and develop relationship with the brand. Customers who are loyal

with a brand, they will still become a fans of that brand even they do not have the

brand at that time. For example, in the case of using deodorant Odorono, which is

the first deodorant in Indonesia. Mowadays we cannot find that brand. But for our

parents who alreadu use and loyal with that brand, they will still become fans of

that brand although it is not sold in Indonesia and they cannot use it anymore. So

brand loyalty is not only about the brand that we have, owe, or use, but also about

brand that we can be fans of it and always loyal and believe with that.

3.3 Research Time and Place

This research was conducted in President University, Cikarang. During this

research, the researcher will give questionnaires to 123 respondents, which are the

students of President University batch 2007 who use Rexona, to know their

response about customer satisfaction and brand loyalty of Rexona.

3.4 Research Instrument

3.4.1 Data Collection Tools

A. Questionnaire

The researcher used questionnaire to collect the data. Questionnaire is a

number of written questions which are used to obtain information from

respondents in the sense of personal statements or other things that they

knew (Arikunto, 2002).

There are two types of questionnaires:

Open questionnaire, which give the opportunity to the respondents to

answer it with their own sentences.

Close questionnaire, which the answer are already available, so the

respondents can chose it.

B. Primary Data

This research used primary data which has been collected from the

questionnaires. Primary data is data that collected by the researcher directly

from source of data. Primary data is also known as the original data or new

data that up to date. To obtain the primary data, the researcher should collect it

directly. The technique can be used by the researcher to collect primary data

include observations, interviews, discussions, focus group discussions, and

distribution of questionnaires.

3.4.2 Technique Measurement

To measure the correlation between each variables, the researcher also use

multiple regression method. The purpose is to know the correlation / relationship

between each independent variables with dependent variables, and also from

dependent to independent variables. From the formula below, we can calculate the

relationship between product quality, price, and service quality with brand loyalty.

Figure 3.2. Measurement of Independent Variables and Dependent Variable

Y = a + bX1 + cX2 + dX3

Where:

Y = Brand loyalty of Rexona

a = intercept

X1 = Product quality

X2 = Price

X3 = Service quality

b = c = d = regression coefficient of independent variable

3.4.3 Data Measurement for Questionnaire

The researcher used Likert Scale to measure the data from questionnaire. Likert

Scale is used to measure attitude, opinion, and perception of a person or a group

of people about social phenomenon (Sugiyono, 2009). For quantitative analysis,

the answers that use Likert Scale were scored:

1. Strongly agree / very satisfied is given a score of 5

2. Agree / satisfied is given a score of 4

3. Neutral is given a score of 3

4. Disagree / not satisfied is given a score

5. Strongly disagree / very dissatisfied is given a score of 1

The questions in the questionnaires are based on the theories of customer

satisfaction and brand loyalty. For the theory of customer satisfaction, the

researcher used factors of customer satisfaction (product quality, price, and

service quality). While, for the theory of brand loyalty, the researcher used

characteristics of brand loyalty (has commitment to the brand, willing to pay more

X1

X2

X3

Y

to the brand when compared with other brands, would recommend that brand to

others, there is not consideration in repurchasing that product, always follow the

information related with that brand, become a spokesperson of the brand and

always develop relationship with the brand). After the questionnaire are already

finished, the research spread it to the respondents, then got the feedback. From the

feedback, data should be convert to interval data using Successive Interval

Method Software, then calculate using SPSS.

3.5 Sampling Design

3.5.1 Population and Sample

Population and Sample is very important in doing research. Population is a

generalization region consisting of the object / subject that has certain quality and

characteristics that is set by the researcher to learn and then get the conclusion

(Sugiyono, 2009). According to Encyclopedia of Educational Evaluation in

Arikunto, population is a set (collection) of all elements possessing one or more

attributes of interest. Population in this research is university students. The

researcher used university students because they are teenager that still have

tendency to try or move to another product which is interesting to them. Because

of that, the researcher wants to know how strong their satisfaction and loyalty to

the brand that they use.

Realize the extent of overall population and limitations that the researcher has, so

the subject of this research focuses on sample. Sample is a partial of the overall

population. Sample in this research is President University students batch 2007

who use Rexona.

Figure 3.3. Population and Sample

Range 1: total student of President University batch 2007

Range 2: Students of President University who use Rexona

To get the number of sample, the researcher used this formula:

Sample size:

n = sample size

N = population

1 = constant

e = desired margin of error

In this research, the researcher use President University students batch 2007

which is 178 people (N). So, the sample size that is used in this research is:

n = 178

1 + 178 (5%)2

n = 123

Form that calculation, the sample size is 123 respondents. So, the respondents of

this research are 123 people.

n = N

1 + N (e)2

1

2

3.5.2 Technique of Sample

3.5.2.1 Validity

Validity testing of each item use item analysis, that is correlate the scores of each

item with total score which is the sum of each score point. In giving interpretation

to the coefficient of correlation, items that have a positive correlation with the

criterion (total score) and a high correlation, indicating that the item also has a

high validity (Masrun in Sugiyono, 2009). Minimum requirement to of validity is

if r = 0.361. If the correlations between the items with total score less than 0.361,

the item in the instrument is declared invalid.

3.5.2.2 Reliability

Reliability is an indicator of items’ consistency of test statement in doing the

measurement functions together. The measure of reliability refers to consistency

or confidence of the measuring results, which implies the measurement accuracy.

Reliability coefficient is calculated by using Cronbach Alpha coefficient with

using this formula:

r = searching reliability coefficient

k = total question

b2 = question variants

t2 = test score variants

3.6 Data Analysis

Analyze the data is very important part in this research because the data will be

useful in order to solve problem. In this research, the researcher analyzes and

processes the data using:

Microsoft Excel 2007

The function of this software is for inputting and processing the data, such

as for counting and making the pie chart.

Successive Interval Method Software

The function of this software is to convert ordinal value to interval in order

to calculate and be able to use regression method.

SPSS 17

The function of this software is to process and calculate the data.

3.6.1 Statistics Implementation

a. Coefficient of Correlation (R)

Coefficient of Determination measures the variability in Y that is

explained by the regression equation. The R2 value can range from a

low of 0 to a high 1 (0≤R≤1):

If R = 0, X explains 0% of the variability in Y

If R = 1, X explains 100% of the variability in Y

b. Coefficient of Determination (R2)

Coefficient Correlation can be divided as the following:

1) 0.70 – 1.00 (either plus or minus) shows high correlation

2) 0.40 - <0.70 (either plus or minus) shows substantial correlation

3) 0.20 - <0.40 (either plus or minus) shows low correlation

4) <0.20 (either plus or minus) shows no correlation

c. F-test

F-test determines whether or not there is a relationship between the set

of independent variables and dependent variable simultaneously. F-test

is used to statistically test the null hypothesis that there is no linear

relationship between X and Y variable. If the significance level for F-

test is below 0.05, we reject H0 and conclude there is a linear

relationship, and vice versa.

H0 : β1 = 0, if significance F < 0.05, accept H0

H1 : β1 ≠ 0, if significance F > 0.05, reject H0

d. t-Test

t-Test is applied to determine the partial relationship between each

independent variable (coefficient) and the dependent variable. The null

hypothesis is that the coefficient of X is 0. If the significance level for

t-test is below 0.05, we reject H0 and conclude that there is a linear

relationship, and vice versa.

H0 : β1 = 0, if significance t < 0.05, accept H0

H1 : β1 ≠ 0, if significance t > 0.05, reject H0

3.7 Limitations

This research focused on President University students who use Rexona, but there

is possibility that the respondent is not willing to fill the questionnaire because

they do not use Rexona. The questionnaire is in Bahasa because sample of

respondents only Indonesian people. The researcher chose only for Indonesian

people because there will be tendency that foreign students do not use Rexona.

CHAPTER IV

ANALYSIS OF DATA AND INTERPRETATION OF

RESULTS

This chapter will explain about result of this research through data analysis and

interpretation of the result. The data which is being analyzed are processed by

successive interval method software and SPSS 17. Successive interval method is

used to convert ordinal to interval value, and after that it will be processed using

SPSS 17. In this chapter, the researcher will explain about validity and reliability,

which is got from pre-test of the questionnaires; and also the results of every

factor in the questionnaires.

4.1 Data Result of Validity and Reliability Testing

4.1.1 Data Result of Validity

In order to analyze the data, the researcher should do validity testing first based on

the data we gather before. In this research, the researcher used questionnaire in

order to obtain the data, and the respondents that the researcher used only 30

people for testing the validity.

Based on r table of Product Moment, if he respondent is 30 people, r value should

be 0.361 for the 5% standard deviation. It means that, if the items/variables are

equal or more than 0.361, the items are valid. But if the items are less than 0.361,

the items are invalid, and we have to eliminate it and change it with another

factor.

A. Validity of Customer Satisfaction

No Variable r result r table Result

1 VAR00001 0.488 0.361 Valid

2 VAR00002 0.708 0.361 Valid

3 VAR00003 0.655 0.361 Valid

4 VAR00004 0.379 0.361 Valid

5 VAR00005 0.670 0.361 Valid

6 VAR00006 0.549 0.361 Valid

Table 4.1. Validity of Customer Satisfaction

Based on the data that r value (at least 0.361) from Corrected Item-Total

Correlation, all the variables are valid the validity testing. From table 4.1 about

validity of customer satisfaction above, we can see that the correlation between

VAR00001 with total score = 0.488, between VAR00002 with total score = 0.708,

between VAR00003 with total score = 0.655, between VAR00004 with total score

= 0.379, between VAR00005 with total score = 0.670, and between VAR00006

with total score = 0.549. All of the results of the variables are more than r table (>

0.361), it means that, all the variables of customer satisfaction are valid.

B. Validity of Brand Loyalty

No Variable r result r table Result

1 VAR00001 0.594 0.361 Valid

2 VAR00002 0.398 0.361 Valid

3 VAR00003 0.740 0.361 Valid

4 VAR00004 0.809 0.361 Valid

5 VAR00005 0.716 0.361 Valid

6 VAR00006 0.700 0.361 Valid

7 VAR00007 0.583 0.361 Valid

8 VAR00008 0.786 0.361 Valid

9 VAR00009 0.402 0.361 Valid

10 VAR00010 0.470 0.361 Valid

11 VAR00011 0.525 0.361 Valid

12 VAR00012 0.694 0.361 Valid

Table 4.2. Validity of Brand Loyalty

Based on the data that r value (at least 0.361) from Corrected Item-Total

Correlation, all the variables are valid the validity testing. From table 4.2 about

validity of brand loyalty above, we can see that the correlation between

VAR00001 with total score = 0.594, between VAR00002 with total score = 0.398,

between VAR00003 with total score = 0.740, between VAR00004 with total score

= 0.809, between VAR00005 with total score = 0.716, between VAR00006 with

total score = 0.700, between VAR00007 with total score = 0.583, between

VAR00008 with total score = 0.786, between VAR00009 with total score = 0.402,

between VAR00010 with total score = 0.470, between VAR00011 with total score

= 0.525, and between VAR00012 with total score = 0.694. All of the results of the

variables are more than r table (> 0.361), it means that, all the variables of brand

loyalty are valid.

4.1.2 Data Result of Reliability

After do validity testing, next step id soing reliability testing. For the reliability

testing, the researcher still used the same data with validity testing, and also same

number of respondents. The mechanism still similar, which is r value should be

equal or more than 0.361 (r ≥ 0.361).

A. Reliability of Customer Satisfaction

No Variable r result r table Result

1 VAR00001 0.785 0.361 Reliable

2 VAR00002 0.736 0.361 Reliable

3 VAR00003 0.753 0.361 Reliable

4 VAR00004 0.829 0.361 Reliable

5 VAR00005 0.743 0.361 Reliable

6 VAR00006 0.773 0.361 Reliable

Table 4.3. Reliability of Customer Satisfaction

Based on the data that r value (at least 0.361) from Cronbach’s Alpha if Item

Deleted, all the variables are reliable the reliability testing. From table 4.3 about

reliability of customer satisfaction above, we can see that the correlation between

VAR00001 with total score = 0.785, between VAR00002 with total score = 0.736,

between VAR00003 with total score = 0.753, between VAR00004 with total score

= 0.829, between VAR00005 with total score = 0.743, and between VAR00006

with total score = 0.773. All of the results of the variables are more than r table (>

0.361), it means that, all the variables of customer satisfaction are reliable.

B. Reliability of Brand Loyalty

No Variable r result r table Result

1 VAR00001 0.889 0.361 Reliable

2 VAR00002 0.900 0.361 Reliable

3 VAR00003 0.880 0.361 Reliable

4 VAR00004 0.879 0.361 Reliable

5 VAR00005 0.882 0.361 Reliable

6 VAR00006 0.883 0.361 Reliable

7 VAR00007 0.889 0.361 Reliable

8 VAR00008 0.877 0.361 Reliable

9 VAR00009 0.896 0.361 Reliable

10 VAR00010 0.894 0.361 Reliable

11 VAR00011 0.891 0.361 Reliable

12 VAR00012 0.882 0.361 Reliable

Table 4.4. Reliability of Brand Loyalty

Based on the data that r value (at least 0.361) from Cronbach’s Alpha if Item

Deleted, all the variables are reliable the reliability testing. From table 4.4 about

reliability of brand loyalty above, we can see that the correlation between

VAR00001 with total score = 0.889, between VAR00002 with total score = 0.900,

between VAR00003 with total score = 0.880, between VAR00004 with total score

= 0.879, between VAR00005 with total score = 0.882, between VAR00006 with

total score = 0.883, between VAR00007 with total score = 0.889, between

VAR00008 with total score = 0.877, between VAR00009 with total score = 0.896,

between VAR00010 with total score = 0.894, between VAR00011 with total score

= 0.891, and between VAR00012 with total score = 0.882. All of the results of the

variables are more than r table (> 0.361), it means that, all the variables of brand

loyalty are reliable.

4.2 Research Objectives Description

4.2.1 Type of Rexona

Figure 4.1. Type of Rexona

From the result of the questionnaire about type of Rexona which is used by the

respondents, the researcher can calculate that from 123 respondents, there are 77

people used roll on, 25 people used stick, 15 people used aerosol, and 6 people

used lotion.

From the pie chart above, we can see that the blue one (for roll on) is the biggest

type of Rexona which are many people use it, about 63%; the second type that is

chosen by people is the red one (for stick) about 20%; the third type is the green

one (for aerosol) about 12%; and the last is the purple one (for lotion) about 5%, it

means that lotion is the smallest one which is chosen by people in this research.

So, from figure about type of rexona above, most of respondents chose roll on as

their type of rexona.

4.2.2 Gender

Figure 4.2. Gender

From the result of the questionnaires about gender, the research can calculate that

there are 71 female and 52 male that have been participated in this research. The

total of respondents is 123 students of President University batch 2007.

From the pie chart above, we can see that the blue one (for female) is bigger than

the red one (for male). We can get the percentage from chart about gender, which

is 58% are female and 42% are male. So, from the figure about gender above, we

can see that most of respondents who have been participated in this research is

female.

4.2.3 Age

Figure 4.3. Age

From the result of the questionnaire about age, the researcher can calculate that

from 123 respondents, there are 17 people have age below 20 years, 100 people

have age between 20 – 25 years, and 6 people have age above 25 years.

From the pie chart above, we can see that the red one (for 20 – 25 year) is the

biggest part of age from the respondents which have contributions for this

research, which is about 81%; the second part is the blue one (for below 20 year),

which is about 14%; and the last one, which is also the smallest part of age is the

green one (for above 25 year), which is only 5%.

4.2.4 Expenses per Month

Figure 4.4. Expenses per Month

From the result of the questionnaire about expenses per month, the researcher can

calculate that from 123 respondents, there are 28 people that spend below

Rp.1.000.000 per month, 75 people that spend between Rp.1.000.000 –

Rp.2.000.000 per month, and 20 people that spend above Rp.2.000.000 per

month.

From the pie chart above, we can see that the red one (for between Rp.1.000.000-

Rp.2.000.000 per month) is the biggest part of respondents’ expenses per month,

which is about 61% people have chosen it); the second part that the respondents

chose is the blue one (for below Rp.1.000.000 per month), which is about 23%;

and the last part is the green one (for above Rp.2.000.000), which is about 16%

respondents have chosen it.

4.3 Analysis of Data

4.3.1 Coefficient of Correlation and Determination

From the table 4.5 below, we can see the coefficient correlation (R) of the

regression model is 0.493, which means that there is positive relation between

independents variables (product quality, price, and service quality) with

dependent variable (brand loyalty). We also can mention that the correlation

between product quality, price, and service quality with brand loyalty is very

strong, since the coefficient of correlation ranges from 0 to 1 (0≤R≤1).

From that table 4.5 below, we also can find the coefficient of determination (R2) is

0.243, which means that there is low correlation between independent variables

with dependent variable. The coefficient of determination also means that

customer satisfaction, which consists of product quality, price, and service quality,

give effective contribution by 24.3% in building brand loyalty. While the rest

75.7% will be explained by another variable which are not included in this

research.

The Durbin-Watson in the model summary table is used to detect the

autocorrelation. In this research, the value of Durbin-Watson is 1.789, which is

means that there is no autocorrelation and the regression model is valid, because

the ranges for Durbin-Watson is between -2 and 2.

Table 4.5. Model Summary

Model Summaryb

Model R

R

Square

Adjusted R

Square

Std. Error of

the Estimate

Change Statistics

Durbin-

Watson

R Square

Change

F

Change df1 df2

Sig. F

Change

1 .493a .243 .224 .59361 .243 12.722 3 119 .000 1.789

a. Predictors: (Constant), service_quality, price, product_quality

b. Dependent Variable: brand_loyalty

4.3.2 F-test

F-test determines whether or not there is a relationship between the set of

independent variables and dependent variable simultaneously. F-test is used to

statistically test the null hypothesis that there is no linear relationship between X

and Y variable. If the significance level for F-test is below 0.05, we reject H0.

From the table 4.6 below, it shows that the value of F test is 12.72 with

significance value of 0.00 (<0.05). Therefore, the significance value is less than

0.05, so we can accept H0. It also means that product quality, price, and service

quality altogether affect brand loyalty of Rexona. In conclusion of F-test, there is

a simultaneous affect of product quality, price, and service quality of Rexona.

Table 4.6. F-test

ANOVAb

Model Sum of Squares df Mean Square F Sig.

1 Regression 13.448 3 4.483 12.722 .000a

Residual 41.932 119 .352

Total 55.380 122

a. Predictors: (Constant), service_quality, price, product_quality

b. Dependent Variable: brand_loyalty

4.3.3 t-test

T-test is used to see the effect of each independent variable toward dependent

variable. From the three independent variables which included in regression

model, two of three independent variables (product quality and price) do affect the

dependent variable, which is brand loyalty. This is because of the value of

significance of these variables are 0.008 and 0.000 respectively which is lower

than 0.05, so we can accept H0.

The other variable, which is service quality, does not affect brand loyalty as

dependent variable. This is because of the significance value of service quality is

0.980, which is greater than 0.05.

Table 4.7. t-test

Coefficientsa

Model

Unstandardized Coefficients

Standardized

Coefficients

T Sig. B Std. Error Beta

1 (Constant) 1.063 .364 2.923 .004

product_quality .239 .088 .236 2.700 .008

price .325 .078 .357 4.162 .000

service_quality .002 .069 .002 .025 .980

a. Dependent Variable: brand_loyalty

4.3.4 Multiple Regression Model

From the regression model that already discussed in analysis method in chapter 3,

the researcher fulfill the calculation result from table 4.7 into the multiple

regression model.

Y = a + bX1 + cX2 + dX3

Y = 1.063 + 0.239X1 + 0.325X2 + 0.002X3

Where:

Y = Brand loyalty of Rexona

a = intercept

X1 = Product quality

X2 = Price

X3 = Service quality

b = c = d = regression coefficient of independent variable

4.4 Summary of Results

This research has found that there is a strong relationship between product quality

and price with brand loyalty of Rexona. It means that the customers of Rexona

have already satisfied with the product quality of Rexona, which is balance with

the price. So they will not think twice about the price although it is rather

expensive compare with another deodorant, because they have already satisfied

with the quality of the product. Actually customers who are loyal with a

brand/product, they are not only see the quality of product and price, but they will

still become a fans of that brand even they do not have the brand at that time.

This research has also found that there is no relationship between service quality

with brand loyalty of Rexona. It means that service quality is not affect brand

loyalty. It is because of the customers of Rexona still not satisfied with the service

quality, may be because the service still not good enough, or they prefer to see thr

product quality before they buy the product.

4.5 Interpretation of Results

4.5.1 Product Quality

From the result of this research above (from t-test result) in table 4.7, we can see

that there is a relationship between product quality with brand loyalty of Rexona.

It is proofed by the value of significance of product quality, which is 0.008. Based

on the range in t-test, if value of significance t < 0.05, means that accepted; but if

value of significance t > 0.05, means that rejected. In this case, value of

significance of product quality is 0.008, which is lower than 0.05. According to

the hypothesis test, we accept H0. It means that product quality affecting brand

loyalty of Rexona.

From that result, we can also conclude that, from the relationship between product

quality with brand loyalty, it will give strong impact each other. This indicates

that if much betters the quality of products provided by Rexona on each product,

they will get good impact on brand loyalty of Rexona. Because the consumer is

very concerned about the quality of products in purchasing something. So, if

product quality is good, consumers will automatically repurchase and they will be

loyal to Rexona.

4.5.2 Price

From the result of this research above (from t-test result) in table 4.7, we can see

that there is a relationship between price with brand loyalty of Rexona. It is

proofed by the value of significance of price, which is 0.000. Based on the range

in t-test, if value of significance t < 0.05, means that accepted; but if value of

significance t > 0.05, means that rejected. In this case, value of significance of

price is 0.000, which is lower than 0.05. According to the hypothesis test, we

accept H0. It means that price affecting brand loyalty of Rexona.

From that result, we can also conclude that, from the relationship between price

with brand loyalty, it will give strong impact each other. This indicates that prices

also give very strong impact on brand loyalty. Basically, price and product quality

must be balanced. Because in purchasing something, consumers will compare the

price with quality of product. If the product quality of a product is good, and the

price is little bit high, consumers who are loyal to the product will not think twice

to purchase it. Meanwhile, if the quality of a product is not good but the price is

high, then consumers will not purchase that product.

4.5.3 Service Quality

From the result of this research above (from t-test result) in table 4.7, we can see

that there is a relationship between service quality with brand loyalty of Rexona.

It is proofed by the value of significance of service quality, which is 0.980. Based

on the range in t-test, if value of significance t < 0.05, means that accepted; but if

value of significance t > 0.05, means that rejected. In this case, value of

significance of service quality is 0.980, which is greater than 0.05. According to

the hypothesis test, we reject H0. It means that service quality does not affect

brand loyalty of Rexona.

From that result, we can also conclude that, from the relationship between service

quality with brand loyalty, it will not give strong impact each other. So, although

service quality of the product is good, it does not give any significant impact to

the brand loyalty. If product quality and price are main component that have

strong relationship with brand loyalty, service quality is only complement

component that support the relationship. It does not affect brand loyalty.

CHAPTER V

CONCLUSIONS AND RECOMMENDATIONS

5.1 Conclusions

This chapter will explain about the conclusions from the results which are

obtained from this research. The conclusions will be discussed based on research

theory. In this chapter, the researcher also will be proposed any recommendations

in order to be used for the next research which appropriate with this topic.

From the result, we can see that there is a strong correlation between some factors

of customer satisfaction as independent variable, which are product quality and

price, with brand loyalty as dependent variable. We also can see that there is no

correlation between another factor of customer satisfaction, which is service

quality, with brand loyalty of Rexona.

Based on the research and result of the analysis, and to answer the statement of

problem in chapter one, the researcher take conclusions as follow:

1. The result from calculating by using multiple regression model for:

a. Coefficient of correlation (R) is 0.493, which is means that there is

positive correlation between product quality, price, and service quality,

with brand loyalty of Rexona. It is based on the range of R, which is

from a low of 0 to a high of 1. It is also means that there is a strong

correlation between the independent variables with dependent variable

of this research.

b. Coefficient of determination (R2) is 0.243, which is means that there is

low correlation between independent variables with dependent

variable. It is also means that product quality, price, and service quality

give effective contribution by 24.3% in building brand loyalty.

2. The result from calculating by using multiple regression models in F table

showed that the significance value of F-test is 0.000. It is means that all

the independent variable, which consists of product quality, price, and

service quality, has a strong relation with dependent variable (brand

loyalty).

3. The result from calculating by using multiple regression models in t table

showed that there are two significance values, which are 0.008 and 0.000

from two independent variables which are product quality and price,

which has strong relationship with dependent variable which is brand

loyalty of Rexona. While, another factor, which is service quality, does not

have any relationship with brand loyalty, because the significance value in

t table is 0.980, which is greater than 0.05. So service quality is rejected.

4. The results from problem statement and hypothesis in chapter one:

a. Is there any relationship between product quality with brand loyalty of

Rexona?

From the result in chapter four (from t-test result), we can see that the

value of significance is 0.008, which is lower than 0.05. According to

the hypothesis test, if the value is less than 0.05, it means that we

accept H0. So, the alternate hypothesis in chapter one is true that there

is relationship between product quality with brand loyalty of Rexona.

b. Is there any realtionship between price with brand loyalty of Rexona?

From the result in chapter four (from t-test result), we can see that the

value of significance is 0.000, which is lower than 0.05. According to

the hypothesis test, if the value is less than 0.05, it means that we

accept H0. So, the alternate hypothesis in chapter one is true that there

is relationship between price with brand loyalty of Rexona.

c. Is there any relationship between service quality with brand loyalty of

Rexona?

From the result in chapter four (from t-test result), we can see that the

value of significance is 0.980, which is greater than 0.05. According to

the hypothesis test, if the value is more than 0.05, it means that we

reject H0. So, the alternate hypothesis in chapter one is false because

there is no relationship between service quality with brand loyalty of

Rexona.

5.2 Recommendations

5.2.1 Implication for the Institution Research

1. Rexona should maintain the quality of product, because it is very

important to support customer satisfaction. If the consumers are satisfied,

they will repurchase the product and it is very good for increasing sales of

Rexona.

2. Rexona should maintain the balance of price with the quality of the

product, and also still have to give promotion, such as give a special

discount that can attract consumers to keep buying Rexona.

3. Rexona should be add other variations, such as fragrance that more fresh

than before, unique and more practical forms which appropriate with the

needs of consumers, in order that the consumers are more interested to buy

Rexona.

4. Rexona should be more satisfying the consumer needs. This is very

influential to establish brand loyalty, in order that the satisfied customers

become more loyal to Rexona.

5. Rexona should be more socialized their products, especially their latest

products, through media or events, in order that the consumers get more

information about the latest development of Rexona.

5.2.2 Implication for Further Research

Based on value of coefficient of determination, the effective contribution of

customer satisfaction in establishing brand loyalty of Rexona is only 24.3%, the

rest is formed by other variables which is not analyzed in this research. Because

of that, it is advisable to the next researchers who are interested in researching

customer satisfaction and brand loyalty variables to analyze another factor that

also influence these variables.

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http://wiki.answers.com/Q/What_is_the_definition_of_service_quality

APPENDICES

Additional Information about Rexona

Key Facts about Rexona

1. World’s largest deodorant brand in terms of sales value and market share.

2. Indonesia’s biggest and fastest growing deodorant brand.

Type of Rexona

Rexona has complete types, which are: Stick, Roll on, Aerosol, and Lotion. For

lotion type, it is only segmented for low income segmentation.

Segmentation and Variants of Rexona

1. Active Women (18-35)

It is specially created for women. With their diverse characters, Rexona

women provide a wide variance in accordance with their characters. It is

available on roll on, stick, aerosol, and deo lotion.

Variants: Cotton, Free Spirit, Skin Light, Passion, Cool White, and

Oxygen.

2. Active Men (18-35)

Because men sweat twice as many compared to women, it needs special

deodorant for men. It is available on roll on, stick, spray, and deo lotion

accordance with the customers need.

Variants: Quantum, Ice Cool, V8, and Power.

3. Teen (for High School)

Teenagers who are unique and have full of activities need its own

deodorant. Rexona Teens provides special deodorant for teenagers.

Rexona Teens is available in three fragrances in accordance with teen’s

characters; it is also available on spray and roll on.

Variants:

Music Fun: with citrus aroma of fresh flowers, perfect for those who

have cheerful personality, energic, active, and like to play.

Fun Spirit: with the fragrance of cucumber makes they have more

spirit, perfect for those who have relaxed personality, spontaneous,

creative, and cheerful.

Tropical Energy: fruity fragrance with the freshness of freesia, perfect

for those who have sweet personality, funny, slang, and soft.

4. Low Income (18-35)

Variant for Women: Spirit.

Variant for Men: Ice Cool.

Advantages of Rexona

Deodorant with antiperspirant that effective to prevent body odor

It contains of anti-bacterial deodorant that can eliminate body odor

which is caused by bacteria on the skin surface. The reduce numbers of

bacteria automatically will eliminate the body odor.

Reduce sweating

Antiperspirant is a material that reduces the amount of sweat on the

skin surface. This is not harmful for health because the active

chemicals dissolve in sweat and form a gel that significantly reduces

the amount of sweat. These gels are released from the surface of skin

while bathing.

KUESIONER

Mohon kesdiaan Anda memberikan jawaban pada kuesioner ini. Survey ini akan

memberikan hasil dengan baik jika anda menjawab seluruh pertanyaan tanpa

dipengaruhi oleh siapapun. Data anda akan kami rahasiakan dan digunakan hanya

untuk keperluan survey.

Beri bulatan pada jawaban yang Anda pilih!

Apakah Anda menggunakan Rexona? a. Ya b. Tidak

Jika Ya, bentuk apa yang biasa Anda gunakan?

a. Stick c. Aerosol

b. Roll On d. Lotion

Jenis Kelamin : a. Pria b. Wanita

Usia : a. < 20

b. 20 – 25

c. > 25

Apa Pendidikan Terakhir Anda?

a. SMA c. S1

b. Diploma d. S2

Pengeluaran per Bulan:

a. < 1.000.000

b. 1.000.000 – 2.000.000

c. > 2.000.000

5 = Sangat Setuju

4 = Setuju

3 = Netral

2 = Tidak Setuju

1 = Sangat Tidak Setuju

Beri tanda (√ ) pada kolom yang Anda pilih!

Kepuasan Pelanggan (Customer Satisfaction)

Kualitas Produk 1 2 3 4 5

1 Rexona tidak lengket dan cepat kering

ketika digunakan

2 Rexona tahan digunakan 24 jam

Harga 1 2 3 4 5

3 Saya merasa harga Rexona sesuai

dengan kualitasnya

4 Diskon spesial dan penawaran spesial

mempengaruhi saya untuk membeli

Rexona

Kualitas Servis 1 2 3 4 5

5 Kemasan Rexona praktis, mudah

digenggam, dan dibawa kemana-mana

6 Rexona memiliki bermacam-macam

aroma sesuai dengan kebutuhan

konsumen

Kesetiaan Merek (Brand Loyalty)

KESETIAAN MEREK 1 2 3 4 5

1 Ketika saya ke supermarket untuk

membeli deodorant, Rexona adalah

merek pertama yang saya ingat

2 Ketika saya ke supermarket dan tidak

menemukan deodorant Rexona, saya

tidak akan membeli produk deodorant

yang lain

3 Saya akan tetap membeli Rexona

walaupun harganya lebih mahal dari

deodorant lain

4 Harga Rexona sesuai dengan kualitas

dan inovasinya yang selalu terdepan

5 Saya sering merekomendasikan

doedoran lain ketika saya membicarakan

tentang deodoran

6 Saya senang merekomendasikan Rexona

sebagai merek deodoran di dalam

percakapan dengan teman dan kenalan

7 Saya enggan beralih ke deodoran lain

jika deodoran Rexona saya telah habis

karena saya tidak percaya dengan

kualitas deodoran lain

8 Saya berkeinginan untuk membeli ulang

Rexona walaupun harganya semakin

mahal

9 Saya sering mencari informasi mengenai

inovasi dan event-event Rexona

10 Saya tahu banyak mengenai promo

Rexona melalui iklan di berbagai media

11 Saya akan mendukung merek deodoran

Rexona dalam promosinya (Saya akan

menghadiri dengan senang)

12 Saya akan mengajak keluarga dan teman

saya untuk menggunakan Rexona karena

kualitasnya yang baik

QUESTIONNAIRE

Please give your answer in this questionnaire. This survey will give a good result

if you answer the questions without intervening from others. Your data will be

keeping secretly and will be used for survey purpose only.

Give a circle on the answer that you chose!

Do you use Rexona? a. Yes b. No

If yes, what thype do you use?

c. Stick c. Aerosol

d. Roll On d. Lotion

Gender : a. Male b. Female

Age : a. < 20

b. 20 – 25

c. > 25

What is your last education??

c. High Scool c. S1 (Bachelor)

d. Diploma d. S2 (Master)

Expenses per Month:

d. < 1.000.000

e. 1.000.000 – 2.000.000

f. > 2.000.000

5 = Strongly Agree

4 = Agree

3 = Neutral

2 = Disagree

1 = Strongly Disagree

Give (√ ) in the column that you chose!

Satisfaction

Product Quality 1 2 3 4 5

1 Rexona ia not sticky and fast drying

when used

2 Rexona can be used for 24 hour

Price 1 2 3 4 5

3 I think price of Rexona appropriate with

the quality

4 Special discount and special offers

influencing me to buy Rexona

Service Quality 1 2 3 4 5

5 Package of Rexona is practice, easily to

grasp and bring anywhere

6 Rexona has vaiety of fragrance that

apropriate with the customer needs

Brand Loyalty

BRAND LOYALTY 1 2 3 4 5

1 When I go to supermarket to buy

deodorant, Rexona is the first brand that

I remember

2 When I go to supermarket and cannot

find Rexona, I will not buy another

deodorant product

3 I will still buy Rexona although the price

is more expensive than other deodorant

4 Price of Rexona appropriates with the

quality and innovation

5 I often recommend Rexona when I talk

about deodorant

6 I am happy to recommend Rexona in

conversations with friends and colleague

7 I do not want to switch to another

deodorant if my Rexona already used up,

because I do not believe in the quality of

other deodorants

8 I want to repurchase Rexona although

the price is more expensive

9 I often looking for information about

innovations and events of Rexona

10 I know a lot about Rexona promo

through advertisements in various media

11 I will support promotion of Rexona (I

will attend with pleasure)

12 I will invite my family and friends to use

Rexona because it has good quality