CONSUMER DECISION-MAKING PROCESS
ARIZONA STATE UNIVERSITY
MKT 402 - CONSUMER BEHAVIOR
WEEK 3
1. Consumer Decision Making
Innovation and creativity in marketing strategies must be based on factors that
influence consumer behavior. In Figure 1.1 the "consumer behavior model" shows the
emphasis on the interaction between marketers and consumers. The central component of
the model is consumer decision making, namely the understanding and evaluation of brand
information, how the consideration of brand alternatives can be tailored to consumer needs,
and also the decision on the brand.
As explained in the previous chapter, studying consumer behavior is trying to
understand how consumers search for, buy, use, evaluate, and spend products and services.
At any time, consumers make various kinds of decisions about finding, buying, using
various products, brands to meet their needs. Consumers make decisions every day or every
period without realizing that they have made a decision. The discipline of consumer
behavior also seeks to study how consumers make decisions and understand what factors
influence and are involved in making these decisions.
In Ujang Sumarwan (2002), Schiffman and Kanuk (1994) define a consumer
decision as choosing an action from two or more alternative choices. A consumer who wants
to make a choice must have an alternative choice. A consumer who wants to buy a sedan, he
is faced with several brands of vehicles, Toyota, Suzuki, Hyundai, Honda, so he must decide
which brand to buy. Or he must choose one and a few brand choices. If the consumer has no
alternative choices, as in the purchase of medicine on prescription. This is not a situation
where the consumer makes a decision. A decision without a choice is referred to as a
"Hobson's Choice" (Schiffman and Kanuk, 1994)
2. Three Factors Influencing Consumer Choice
The three factors that influence consumer choice are:
a. Individual Consumer Influence
In self individual consumer, choice brand is influenced by:
1) Consumer needs,
2) Perception of brand characteristics, and
3) An attitude towards choice.
In addition, brand choice is also influenced by consumer demographics, lifestyle, and
personnel characteristics.
b. Environmental Influence
The consumer buying environment is indicated by the following:
1) Culture (societal norms, regional or tribal influences),
2) Social class (the extent of the socio-economic group of the consumer's possessions),
3) Face-to-face groups (friends, family members, and reference groups) and
4) Highly situational decisive factors (the situation in which the product is purchased such
as families using cars and business circles).
c. Marketing Strategy
It is a variable where marketers control their efforts in informing and influencing
consumers. The variables are:
1) Items,
2) Price,
3) Advertising and
4) Distribution
The above variables are what drive consumers in the decision-making process. A
marketer must collect information from consumers for the evaluation of key marketing
opportunities and the development of marketing strategies. This need is illustrated by the
two-way arrow between marketing strategy and consumer decisions in figure 1.1 Marketing
research provides information to marketing organizations regarding consumer needs,
perceptions of brand characteristics, and attitudes towards brand choice.
Marketing strategies are then developed and directed towards consumers. When
consumers have made a decision then evaluate past purchases, described as feedback to
individual consumers. During the evaluation, consumers will learn from experience and may
change information gathering patterns, brand evaluation, and brand selection. Consumption
experience will directly affect whether consumers will buy the same brand again.
The feedback arrow leads back to the marketing organization. Marketers will follow
consumer response in the form of market share and sales data. But this information does not
tell the marketer about why consumers buy or information about the strengths and
weaknesses of the marketer's brand relative to rivals. Marketing research is therefore needed
at this stage to determine consumer reactions to brands and future purchasing trends. This
information leads management to reformulate marketing strategies towards better meeting
consumer needs.
b. An unbroken dimension or process from high to low purchase interest involvement.
High purchase interest involvement is important for consumers. Because the purchase
is closely related to the interests and image of the consumer himself. Some of the risks faced
by consumers are financial, social, psychological risks. In some cases, to carefully consider
product choices requires special time and energy from consumers. Low purchase interest
involvement is not so important to consumers because the financial, social, and
psychological risks are not so great. In this case it may not be worth the consumer's time,
effort to search for information about the brand and to consider a wide range of options.
Thus, low purchase interest involvement generally entails "a limited process of decision
making". Decision making versus habit and low importance involvement versus high
importance involvement result in four types of consumer buying processes.
4. Human Model
Schiffman and Kanuk (1994) suggest four kinds of perspectives from the model of
man. The human model referred to here is a model of the decision behavior of an individual
based on four perspectives, namely economic man, passive man, cognitive man, and
emotional man. This human model describes how and why individuals behave the way they
do. (Ujang Sumarwan, 2002)
a. Human Economy
The concept of human economics comes from the discipline of economics. Humans
are seen as individuals who make rational decisions. In order for an individual to think
rationally, he must realize various alternatives based on the good and bad of alternative
products and be able to choose the best of the available alternatives. Economic humans try to
make maximum decisions. Decisions based on economic considerations such as price,
quantity of goods marginal utility, and indifferent curves. (Ujang Sumarwan, 2002)
Some argue that the concept of economic man is too idealized and simplistic.
Economic man does not describe real human beings. The description of economic man
positions individuals in a world of perfect competition. In reality, the world that exists is a
world with imperfect competition. Humans have limited abilities and skills, so they do not
always have perfect information about products and services. Limitations often make
humans unwilling to make intensive decisions by considering many factors. Humans only
rely on decisions that provide sufficient satisfaction rather than maximum satisfaction.
b. Passive Man
In Ujang Sumarwan (20022) this model humans are described as selfish individuals
and accept various kinds of promotions offered by marketers. Consumers are described as
irrational and impulsive buyers, who are ready to surrender to the efforts and goals of
marketers. Consumers are often considered as objects that can be manipulated. This model
contrasts with the economic amnesia model. The human model is passive and considered
unrealistic. The model does not describe the same consumer role in many buying situations.
The consumer's role is to seek information about product alternatives and choose the product
that can provide the most satisfaction. In actual situations consumers are rarely the object of
manipulation.
c. Human Cognitive
Consumers are often passive in accepting products and services as they are, but often
consumers are also very active in finding alternative products that can meet their needs and
satisfaction. The cognitive human model focuses on consumers in seeking and evaluating
information in choosing brands and places of purchase. The cognitive human model
describes consumers as individuals who think to solve problems (a thinking problem solver).
The cognitive human model also describes consumers as an information processing system.
Information processing will lead to the formation of preferences and then to the desire to
buy. The cognitive human model places consumers between the two extremes of the
economic human model and the passive human model.
d. Emotional Human
This model describes consumers as individuals who have deep feelings and emotions
that ultimately influence the purchase or ownership of certain goods. Consumer feelings
such as sadness, joy, pleasure, love, fear, greatly influence consumer purchasing behavior.
For example, a person does not want to give his clothes to others even though they are worn
out and not enough to wear because the clothes were given to him by his deceased parents.
Consumers who make emotional purchasing decisions tend to conduct very limited
information searches before buying. He considers his mood and feelings more than his
logical thinking. But that does not mean that emotional humans always make irrational
decisions. Because sometimes, if consumers are faced with two products between cheap and
expensive / good products, consumers will definitely prefer the expensive / good one. In
conditions like this, consumers are considered to still use their rationalization compared to
their emotions.
In Ujang Sumarwan (2002), it is said that mood has an equally important role as
emotions in consumer decision making. Mood is a feeling state or state of mind. Emotion is
a response to a certain environment, while mood is more of an unfocused condition, which
has arisen before when consumers see advertisements, retail environments, brands or
products. Shopkeepers try to influence the mood of consumers by providing a pleasant store
mind and store atmosphere. Consumers who have a good mood will stay longer in the store,
and then consumers will be more interested in shopping at the store.
5. Decision Making Types Consumers
Consumer buying situations are very diverse. Usually if a consumer is going to buy a
valuable item, he must make an intensive effort to find information and compare it with
other alternative goods. But in routine purchases, such as food and drinks that are daily
necessities, consumers usually do not make intensive efforts and look for alternative choices
that are quite complicated. Purchase situation
different causes consumers not to take the same steps or stages of decision making.
As consumers may take five decision steps as mentioned above, some only go
through a few steps, and some may only take the purchase step. Schiffman and Kanuk
(1994) in Ujang Sumarwan (2002) mention three types of consumer decision making
including:
a. Extensive Problem Solving
In assessing a brand, consumers need a lot of information to determine the criteria for
each brand to be considered. Schiffman and Kanuk, (1994) explain that consumers who do
not have criteria for evaluating a product category or a particular brand in that category, or
do not limit the number of brands to be considered to an easily evaluated number, then their
decision-making process can be referred to as extended problem solving. Extended problem
solving is usually carried out on purchases of d ura b le goods and luxury goods such as
houses, cars, expensive clothing, electronic equipment. or important decisions such as
vacationing abroad, which require consumers to make the right choice. Under these
conditions, consumers will conduct intensive information searches and evaluate several or
many alternatives. After going through the buying process, the consumer will evaluate. If he
is satisfied, he will communicate his satisfaction to those around him or called The Positive
Word Of Mouth (WOM). Conversely, if the consumer is disappointed, he does not will
recommend purchases to others or called The Negative Word Of Mouth.
b. Limited problem solving
In this type of decision-making, consumers already have basic criteria for evaluating
a product category and various brands in that category, but consumers do not yet have
preferences for certain products and brands. Under these conditions, consumers only need
additional information to be able to distinguish between these various products and brands.
Consumers will simplify the decision-making process without going through the stages as
found in PMD. This is because consumers have limited time and resources. Most purchases
of products in the market / supermarket are made by consumers with limited problem
solving decision making types. Therefore, usually in supermarkets many pamphlets,
banners, advertisements and product demonstrations are installed in order to help consumers
recognize these products and brands.
c. Routine Problem Solving (routinized response behaviour)
Because consumers who have made purchases have experience with the products and
brands purchased. Then he already has a standard of judgment to evaluate products and
brands. In a position like this, consumers only need a little information. For example, in
purchasing basic foodstuffs such as sugar, soy sauce, instant noodles and others, consumers
usually only go through two stages, namely: need recognition and purchase. If consumers
have run out of basic food supplies, they will buy them immediately.
6. Consumer Decision Steps
The decision to buy or consume a certain product and brand will be preceded by the
following steps:
a. Needs Recognition
Need recognition arises when consumers face a problem, namely a situation where there
is a difference between the desired situation and the situation that actually occurs. A
working mom faces a time pressure problem. She has to wash her family's clothes, but she
doesn't have much time to do it. This condition generates the introduction of the need to own
a washing machine.
b. Time
Time will also drive the recognition of consumer needs. For example, because the
consumer's age is getting older, it encourages him to pay more attention to his health by
consuming nutritious foods and drinks by not violating his restrictions. For parents affected
by diabetes, Tropicana Slim artificial sweetener meets their needs to consume sweet foods
and drinks. Because Tropicana Slim artificial sweetener, is low calorie and low sugar.
c. Change of Situation
Changes in the situation will also cause consumers to be active in meeting their needs.
Consumers who are not married, will spend more time and his money to just let off steam
without thinking about the needs of his family, wife and children.
d. Product Ownership
When consumers own a product, it often creates a need to own other products. For
example, when a consumer buys a new car, he will need other products, such as car
shampoo (Kit Shampoo), chamois lab, car tools and equipment, and even the services of
other people who can help him wash and maintain the car.
e. Product Consumption
The exhaustion of a consumer's food supply often prompts him or her to make
immediate repurchases for future consumption.
f. Individual Differences
Consumers make purchases because consumers feel the actual state that their old
products are not functioning properly.
g. Influence of Marketing Communication
Marketing communication programs will influence consumers to be aware of their
needs. Products and brands that are well communicated and attractive will trigger consumers
to realize their needs and feel that the product can meet their needs.
7. Search Information
Information searches begin when consumers see that these needs can be met by
buying and consuming a product. Consumers will look for information stored in their
memory (internal search) and look for information from outside (external search) (Ujang
Sumarwan, 2002).
a. Internal Search
The information consumers seek includes various products and brands that are
considered to solve problems or meet consumer needs. The process of searching for
information internally from consumer memory can be explained as follows. The first step is
that consumers will try to remember all products and brands. Consumers will get some
products and brands that they know very well, but consumers will also remember some
products or brands but not well. The remembered products and brands will emerge from
their long-term memory.
In the second step, consumers will focus on products and brands that are very
familiar to them. He will divide the familiar products into three categories. The first is the
consideration set (consideration set or evoked set), which is a collection of products or
brands that will be considered further. The second is the undifferentiated group (inner set),
which is a collection of products or brands that are seen as no different from each other.
Third is the rejected group, which is a group of products or brands that cannot be accepted.
b. External Search
Consumers will stop at the internal search results if what they are looking for has
been fulfilled. If not, consumers will continue to the external search stage. Consumers may
also combine internal and external searches so that the information they get about products
and brands is perfect and convincing.
External search is the process of finding information about various products and
brands from the consumer's external environment. At this stage, consumer activities are
asking friends, relatives or salespeople. Consumers will read packaging, newspapers,
magazines.
External information search will be divided into several dimensions, namely:
1). degree of search, is how much information consumers are looking for. The
information sought includes the following:
a. How many stores were visited?
b. How many brands are under consideration?
c. How many attributes are evaluated?
d. How many sources of information or instructions were read?
e. How many friends or store employees did you discuss it with?
f. How many ads are seen, heard and read?
g. How long does it take to find information?
Extended problem solving is closely related to the amount of information consumers
seek. If consumers carry out activities on items a to f above in relatively large quantities, it
can be concluded that they are doing extended problem solving. Conversely, if consumers
carry out activities on items a to f in a minimal amount, it can be said that they are doing
limited problem solving (Ujang Sumarwan, 2002).
2). Direction of search, is the consumer's activity in choosing brands, stores, attributes and
sources of information. To find out the direction of information search from a consumer, the
following questions can be asked.
a. What brands do consumers consider?
b. What stores do customers visit?
c. What attributes of the product do consumers evaluate?
d. What sources of information do consumers use?
3). The sequence of search is how consumers perform the steps of the search activity. To
find out the sequence of search, the following questions can be asked.
a. How do consumers consider brands?
b. How do consumers visit stores?
c. How is product attribute information processed?
d. How are information sources used?
8. Factors that influence information seeking
How actively consumers seek outside information or perform extensive problem
solving will be determined by the following two main factors (Mowen and Minor, 1998,
Engel, Blackwell and Miniard, 1995).
a. Economic Theory of Information
This theory states that consumers will seek information if the marginal benefit
obtained from the information exceeds the marginal cost of seeking the information.
Consumers will continue to seek information as long as they will obtain additional benefits
that are greater than the additional costs they will incur. For example, he will visit a second
store with additional transportation costs of only Rp.5000, but he is sure to get a cheaper
product price of Rp.10,000. This means that consumers will get additional benefits greater
than the additional costs that must be incurred to find or visit the second store. The time
available to the consumer is also often considered, whether he will seek information.
Perhaps the consumer is more willing to pay Rp.50,000 more for the product, rather than
having to go to another store that takes more than an hour. Because losing an hour is more
valuable compared to a loss of Rp. 50,000 in buying a product. (Ujang Sumarwan, 2002)
b. Decision-Making Approach Model
The decision-making model states that consumers will seek a lot of information if
they are in a situation of high involvement with the product they are looking for or when
they are doing extended problem solving.
9. Risk Factors Products
The higher the consumer has a risk perception of the product he is going to buy, the
consumer will seek as much information as possible about the product. If consumers
perceive that product differentiation does not exist or the available brands are relatively the
same, then consumers are not motivated to seek more information. High-priced products will
be perceived as having a high financial risk for consumers, which will encourage consumers
to seek more information. These risks are:
a. Financial Risks
b. Function Risk
c. Psychological Risks
d. Time Risk
e. Social Risks
f. Physical Risks
10. Consumer Characteristics
Consumer characteristics include consumer knowledge and experience, consumer
personality, and consumer demographic characteristics also greatly influence purchasing
decisions. Consumers who have knowledge and experience
consumers who know a lot about the product may not be motivated to seek information,
because they feel they have enough knowledge to make a decision. Consumers who have
more personality will like to seek information (information seeker) and take the time to find
more information. Consumers who are highly educated will prefer to find a lot of
information about a product before they decide to buy it.
11. Situation Factors
Situational factors are the environmental conditions faced by a consumer. Consumers
may have limited time so they do not conduct intensive information searches, for example
consumers in poor psychological conditions. Usually, in situations like this, consumers are
not interested in finding a lot of information.
12. Evaluation Alternatives
The third stage of the consumer decision process is prepurchase alternative
evaluation. Alternative evaluation is the process of evaluating product and brand options,
and choosing them according to what consumers want. In the alternative evaluation process,
consumers compare various options that can solve the problems they face. According to
Mowen and Minor (1998), at this stage consumers form beliefs, attitudes and intensities
regarding the product alternatives under consideration. the process of evaluating alternatives
and the process of forming beliefs and attitudes are very closely related processes.
Alternative evaluation arises because of the many alternative choices. Choices regarding
washing machine brands, washing machine types, washing machine sizes and washing
machine prices. Consumers will have a set of washing machine attributes that will be used as
a basis for evaluating alternatives in evaluating alternatives. These attributes can be size,
price, electricity usage, and so on. Consumers will choose a brand that will provide the
benefits they expect. (Ujang Sumarwan, 2002)
How complicated the alternative evaluation process is for consumers depends on the
decision-making model that consumers undergo. If decision making is a habit, then
consumers only form a desire to repurchase the same product as previously purchased. If
consumers do not have knowledge about the product they are going to buy, consumers may
rely more on recommendations from friends or relatives about the product they are going to
buy. Consumers are not interested in bothering to evaluate alternatives. In the case of
medicines, consumers just trust the doctor about the type and brand of m e di c ine t h e y
should buy. If the product being purchased is expensive and high risk, then consumers will
consider many factors and engage in an extensive alternative evaluation process.
According to Mowen and Minor (1998), the alternative evaluation process will
follow a pattern of whether it follows the decision-making perspective, the experiential
perspective, or the behavioral perspective. If consumers are in a state of high involvement
with the product (high-involvement decision making), then the alternative evaluation process
will have the following stages: belief formation, then attitude formation, and behavioral
intentions. So that the alternative evaluation process can be explained by the multi-attribute
attitude model (Ujang Sumarwan, 2002).
The result of the alternative evaluation process at high involvement is the formation
of a general attitude towards each alternative. In low involvement situations, the process of
evaluating alternatives only involves the formation of a little trust in the alternative choice.
Meanwhile, attitudes emerge after the occurrence of behavior. If consumers make decisions
following the experiential model, then the alternative evaluation process focuses on creating
attitudes rather than forming beliefs. While the alternative evaluation process in the
behavioral model, consumers do not compare alternative choices before making a purchase.
13. Criteria Evaluation
Evaluation criteria are attributes or characteristics of the product/service that are used
to evaluate and assess the preferred alternative. Evaluation criteria can vary depending on
the products and services being evaluated. When buying a house, consumers will consider
the following attributes: the location of the house, the size of the house, the model of the
house, the safety of the neighborhood, whether it is flooded or not, the price of the house, or
the method of payment, and the development company. These criteria describe more of the
functional attributes of the house. Consumers may also consider hedonic or psychological
criteria. For example, in considering location, it is not just a consideration of how far it is
from the office or highway. Consumers may consider whether the location of the housing is
considered an elite or ordinary or slum area, which can describe the prestige of the location
of the house. Engel, Blacwell and Miniard (1995) mention three important attributes that are
often used for evaluation, namely price, brand, and country of origin of the brand maker.
(Ujang Sumarwan, 2002)
14. Price
Price is the product and service attribute most often used by most consumers to
evaluate products. For most Indonesian consumers who still have low income, price is the
main factor considered in choosing products and services. Consumers are also very sensitive
to price. Increases in the prices of basic commodities or consumer products often cause
social turmoil.
15. Brand
Brand is a symbol and quality indicator of a product. Product brands that have long
been recognized by consumers have become an image, even a status for a product. So it is
not surprising that brands are often used as criteria in evaluating a product.
16. Origin Country
Indonesian consumers are known as consumers who like imported products, they
consider imported products as higher quality products than local products. Products from
developed countries such as the United States and Japan are very popular with Indonesian
consumers. Where a product comes from is often an important consideration for consumers
to evaluate. If consumers face two brands with relatively the same price, one from Japan and
the other from local origin, then consumers will tend to choose products made in Japan.
17. Determining Alternatives Options
After consumers determine the criteria or attributes of the product or brand being
evaluated, the next step is for consumers to determine alternative choices. In the criteria
evaluation process, consumers will get a number of brands to consider. Then consumers will
divide these brands into several groups. The first is the group of brands that are not different
(the insert set), which is a collection of brands that are considered to have no advantages, so
consumers do not evaluate them positively or negatively. Consumers are not motivated to
consider it further. Second is a product that is rated negatively (the inept set), consumers
may obtain information from those around them about the bad brand or consumers
themselves who have experienced disappointment from the product. Consumers do not
consider the product to be purchased. The third is the consideration set or evoked set, which
is a number of brands that will be evaluated next, and consumers will choose one of these
brands. (Ujang Sumarwan, 2002)
17. Making Product Choices
After determining the alternatives to be selected, consumers will then determine the
product or brand they will choose (the consumer choice process). The alternative selection
process will use several selection techniques (decision rules). Decision rules are techniques
used by consumers in choosing alternative products or brands. Selection techniques are
divided into two main techniques, namely compensatory techniques (compensatory decision
rules) and non-compensatory techniques (compensatory decision rules).
18. Compensatory techniques
Compensatory techniques are the advantages of a brand's attributes so that they can
cover the weaknesses of other attributes so that consumers judge the product to be good. For
example, there are two television brands being evaluated. Brand A has excellent signal
capture, so the picture is very bright and bright, even though it is in a location far from the
range of the transmitter station, but it is able to capture incoming signals. Brand A, on the
other hand, has a weakness in the sharpness of its sound. Brand B has a weakness in good
signal capture, but has good sound sharpness. Consumers who prioritize signal capture
ability over others will choose brand A TVs, while consumers who prioritize sound
sharpness will choose brand B TVs.
The use of compensatory techniques is usually used if consumers make decisions in
high involvement situations. Consumers will evaluate all the attributes of a brand, then give
an overall assessment. If overall, brand A has a higher score than brand B, then consumers
will choose brand A. Fishbein's multiattribute attitude model (attitude model towards a
brand) is a model of attitude towards a brand object) is one example of a compensatory
model that can be used to analyze consumer decision-making.
19. Non-compensatory Engineering
Non-compensatory techniques are applied by consumers in low involvement
situations. This technique states that if a product attribute scores low, it cannot make up for
(compensate for) low scores on other attributes. Non-compensatory techniques are also
referred to as hierarchichal models of choice or heuristic models of choice, where
consumers compare attribute scores one by one. For example, a consumer compares five car
brands. Three attributes of the car are evaluated. Consumers will compare the first attribute
of the five alternative car brands, then continue with the second attribute, and then the third
attribute. Noncompensatory techniques are techniques used to achieve satisficing decisions
(satisficing model of decision). Satisficing decision-making allows consumers to achieve
optimal satisfaction. The model is suitable for low-involvement decision making, because
consumers do not need to reach an optimal decision but simply a "good enough" decision.
some non-compensatory techniques are described below. (Ujang Sumarwan, 2002)
20. Lexicographic Technique (The Lexicographic Rule)
Consumers will evaluate alternative brands based on attributes that are considered
mutually important. Consumers will choose the brand that has the best attribute performance
(score). If several brands are found to have the same good attributes, consumers will
evaluate the second attribute that is considered important. If more than one brand still has
the same good attributes, the evaluation process continues to other attributes, until the
attributes are considered important. One brand is found to be the best. The lexicographic
technique is a product evaluation by attribute (PBA) technique, as consumers compare
brands based on the attributes of fuel consumption, car price and so on.
21. Elimination by Aspects Technique
This technique is similar to lexicography, which selects brands based on the
performance of their most important attributes. The difference is that the stepwise reduction
technique sets minimum or standard scores (Cutoffs) for the attributes that are considered
most important. If the minimum score for the first attribute is met, the brand will be selected.
If several brands are obtained in the first stage of evaluation, it will continue with the
evaluation of the second important attribute, and so on.
22. Conjunctive Rule Technique
Consumers will set a standard minimum limit or score (cutoffs point) for each
attribute evaluated. if a brand has a score of all attributes equal to or greater than the
minimum score set, then the brand will be chosen. However, if any one attribute does not
meet the minimum score, the brand will be rejected. This technique is suitable for selecting a
large number of brand alternatives. This technique simplifies the brand evaluation process,
so brand selection can be done quickly. This technique is often used as the first stage in the
brand selection process, so that the number of brands becomes smaller which can then be
continued with the use of more complicated techniques such as compensatory techniques. If
the consumer does not obtain a brand with the conjunctive technique, the consumer may
delay the purchase or change the minimum score for each attribute or change the technique
used in evaluating the attribute.
23. Disjunctive Technique (Disjuctive Rule)
This technique is similar to the conjunctive technique, which sets a minimum score
limit for each attribute evaluated. The difference is that the disjunctive technique will select
the brand that has the highest score on one of the attributes of the brand. Therefore, if the
disjunctive technique is applied in evaluating three previous car brands, the car brand that is
selected is the one that must meet the minimum score on each attribute and the one that has
the highest score on one of its attributes.
24. Decision Support System (SPK )
The concept of Decision Support System (DSS) was first expressed in the early
1970s by Michael S. Scott Morton with the term Management Decision System. The system
is a computer-based system intended to assist decision makers by utilizing certain data and
models to solve various unstructured problems.
The term SPK refers to a system that utilizes computer support in the decision-
making process. To provide a deeper understanding, several definitions of SPK developed
by several experts will be described, including by Man and Watson who provide the
following definition, SPK is an interactive system, which helps decision makers through the
use of data and decision models to solve semi-structured and unstructured problems.
25. Characteristics and Value Use
The characteristics of a decision support system are:
a. Decision Support Systems are designed to assist decision makers in solving problems
that are semi-structured or unstructured by adding human wisdom and computerized
information.
b. In its processing, decision support systems combine the use of analytical models with
conventional data entry techniques and information search/interrogation functions.
c. Decision Support System, designed in such a way that it can be used/operated easily.
d. Decision Support Systems are designed with an emphasis on flexibility and high
adaptability.
With the various special characteristics above, SPK can provide various benefits
and advantages. The benefits that can be taken from SPK are:
a. SPK expands the decision-maker's ability to process data/information for the user.
b. SPK helps decision makers to solve problems especially various highly complex and
unstructured problems.
c. SPK can produce solutions more quickly and the results are reliable.
d. Although an SPK, may not be able to solve the problems faced by decision makers, it
can be a stimulant for decision makers in understanding their problems, because it is
able to present various alternative solutions. In addition to the various advantages and
benefits as stated above, SPK also has several limitations, including:
e. There are some management capabilities and human talents that cannot be modeled, so
the existing model
in the system do not all reflect the real issue.
f. The capabilities of an SPK are limited to its knowledge base (knowledge base and
model base).
g. The processes that SPK can perform usually also depend on the software used.
h. SPK does not have the intuitive ability that humans have. This system is designed only
to assist decision makers in carrying out their duties. So it can be said that SPK can
provide benefits for decision makers in increasing work effectiveness and efficiency,
especially in the decision-making process.
i. SPK does not have the intuitive ability that humans have. This system is designed only
to assist decision makers in carrying out their duties. So it can be said that SPK can
provide benefits for decision makers in increasing work effectiveness and efficiency,
especially in the decision-making process.
26. Components of a Decision Support System
A decision support system consists of three main components:
1) Data management subsystem (database).
2) Model management subsystem (modelbase).
3) Dialog management subsystem (userinterface).
CUSTOMER SATISFACTION, LOYALTY AND RECOMMENDATION:
1. Type Purchase
In Ujang Sumarwan (2002), purchases of products or services made by consumers
can be classified into three types (Engel, Blackwell and Miniard, 1995), namely as follows.
a. Fully planned purchase
If the consumer has determined the product and brand well before the purchase is
made, then this includes a fully planned purchase. Fully planned purchases are usually the
result of an extended or high involvement decision process. Consumers buying a new car
can be classified into this category because they usually already have a desire for the type of
car, make and model they are buying before entering the show room. Low-involvement
products may also be planned purchases. Consumers often make a list of items to buy if they
go to the supermarket, they already know the products and brands they will buy.
b. A Partially Planned Purchase
Consumers often know they want to buy a product before they enter the supermarket,
but they may not know the brand they want to buy until they can get more information from
the salesperson or product display in the supermarket. When she knows the product she
wants to buy beforehand and decides on the brand in the store, this is a semi-planned
purchase.
c. Unplanned Purchases
Consumers often buy a product without planning ahead. The desire to buy often
arises in stores or in malls. Many factors contribute to this. The 50% price cut display, which
is conspicuous, will attract the attention of consumers. Consumers will feel the need to buy
the product. The display has awakened d o r m a n t consumer decisions, so that
consumers feel an urgent need to buy the promoted product. Decisions like this are often
referred to as impulse purchases. Most product purchases, especially consumer-goods
purchases, are made at retail stores. Peter and Olson (1999)
a. Purchasing Process
The consumer buying process includes the following:
1) Purchase Stage
At this stage, some of the behaviors that occur include information seeking and
provision of money/funds.
a) Seeking information (information contact). Consumers will seek information about the
products/services needed, brands or stores from various sources such as advertisements in
magazines, radio, television, or people around them.
b) Provision of money / funds (fund access). Apart from needing to find information about the
products and brands to be purchased, consumers also need to know the source of funds used
to buy these products. Product purchases generally use money ( cash) or credit/debit cards
as the primary means of exchange.
The purchase stage is the stage where consumers come into contact with product
providers, either manufacturers or retailers (store contact). The desire to buy a product will
encourage consumers to find a product provider manufacturer or retailer or shopping center
(mall) and where the manufacturer or retailer sells the product. Various ways are done by
consumers to find the right manufacturer or retailer. Furthermore, manufacturers or retailers
must look for strategic locations so that they are easily seen by consumers. It is not
uncommon for mall managers to organize festivals, exhibitions, star encounters and other
entertainment events to attract consumers to visit the mall. Another way is to display
discount announcements with striking and colorful letters that attract consumers to come and
buy their products.
2) Search Stage
In the second stage, consumer behavior relates to product providers (producers/retailers)
and product search (product contact). After the consumer has found a manufacturer or
retailer and a place to shop, the consumer will then search for and obtain the product he
wants to buy. He must find the location where the product is placed in the store /
supermarket. The store owner has an interest in having consumers always visit his store.
While the producer has an interest in promoting their products for consumers to buy.
Manufacturers usually implement two strategies. The first is push strategies, which involves
providing trade discounts and incentives to retailers. The aim is to encourage retailers t o
increase sales of the product. The second is pull strategies, which is the provision of
discounts or discount coupons or other coupons to consumers so that they are interested in
buying the product. If the consumer has found the product he is looking for, he will take the
product, and then bring it to the place of payment or cashier. (Ujang Sumarwan, 2002)
3) Transaction Process
The third stage of the buying process is to make a transaction, namely exchanging goods
for money, transferring ownership of goods from the store to consumers. The convenience
of a consumer shopping at a store is not only determined by the number of goods available,
the ease of obtaining goods in the store, and the promotional appeal of the product, it is also
determined by the convenience of the final process or transaction made by consumers. Shop
owners make various efforts so that the transaction process is short, comfortable and safe for
both consumers and shop owners. To shorten the transaction time, several payment places
are provided and even special cashiers are provided for a small number of items. The goal is
to shorten the transaction time so that consumers do not have to wait a long time to pay
waiting in line. Shop owners also provide scanner machines, to speed up and facilitate the
recording of goods purchased by consumers in calculating the number of transactions so that
it is more accurate. Stores also provide various payment methods so that consumers can
choose according to their wishes. Consumers can pay in cash, with credit cards, debit cards,
store cards, or even with credit from the store concerned.
In the era of globalization (WWW) as it is today, it is not something that is impossible
for consumer purchases to be made using non-physical media or called cyberspace markets.
The role of the internet and web sites is very helpful for both producers and consumers in
making purchases and sales on line. For consumers who have quite busy activities and do
not have time to shop at supermarkets or shops, it is enough with the internet media that
consumers can make purchases. So this activity is called in-home shopping and purchasing.
2. Various Sales Methods
a. Direct selling, which is personal contact between sellers and consumers (Personal selling),
where the seller and buyer do not take place at a point of sale.
b. Direct-mail ads. Manufacturers send various offers in the form of letters or print
advertisements to consumers' homes. The aim is to inform consumers about new or old
products provided by marketers.
c. Catalogs (direct-mail catalogs). Catalogs are printed publications that contain complete
information about products, usually in the form of books or magazines and sent directly via
post to consumers' homes.
d. Telemarketing, is a marketing model using telephone or cellphone media to market its
products, (Ujang Sumarwan, 2002). There are two kinds of telemarketing, namely outbound
telemarketing and inbound telemarketing. Outbound telemarketing is a marketer's effort to
contact consumers to promote their products. Here, active marketers contact consumers by
telephone. While inbound telemarketing is the provision of toll-free telephone numbers by
companies so that consumers are interested in calling producers without having to be
burdened with fees. Toll-free numbers usually numbered 0800-xxx-xxxx will trigger
consumers to actively call producers / marketers.
e. Direct response ads, are advertisements for products or services through print and electronic
media that consumers can access directly. For example, Walls ice cream Brand "Magnum
Classic" advertises its products in one of the Malls in Jakarta, where each consumer who
buys at that place is photographed and then displayed on the front scene screen of the Mall.
To get closer to consumers, Walls Brand "Magnum Classic ice cream marketers ask for
responses from consumers after consuming Walls Brand "Magnum Classic ice cream.
3. Consumption
After consumers buy or obtain products and services, the next stage will be followed
by the process of consumption or spending products and services. The term consumption has
a broad meaning related to the type or category of products and services purchased or used.
Table 4.1 shows the meaning of consumption for various types of products and services.
(Ujang Sumarwan, 2002) Durable goods,
Durable goods have a long lifespan, which can be many years. Some examples of
durable goods are furniture, electronic devices and household appliances.
a. Non durable goods.
Non-durable goods are goods that run out quickly when consumed or used. Food,
drinks, toiletries, kitchen spices are examples of non-durable goods. if consumers buy ten
pieces of Aqua for ten of their friends, and consumers drink it all at once, then Aqua drinks
are said to be non-durable goods.
To know more about product consumption activities (product use), a marketer must
know three things, namely:
1) Frequency of consumption,
2) Total consumption,
3) Purpose of consumption.
Consumption frequency describes how often a product/service is used or consumed.
Motorbikes are one of the motorized products that are used with a very high frequency,
because they are used every day by company sales to deliver the goods being sold. Ideally,
producers or marketers want the products they sell to be consumed with a very high
frequency by consumers. Therefore, producers or marketers must know the frequency of
consumer consumption.
The frequency of consumption can be an indicator of the amount of market demand
for its products. Manufacturers or marketers also often practice marketing strategies by
making it seem as if their products are frequently used by consumers. The hope is that other
consumers are immediately interested in using the product without having to think long
because many consumers also use the product.
As for the purpose of consumption, a consumer consumes a product for various
purposes. Therefore, producers or marketers often make products in the hope that they can
meet various consumer needs. For example, consumers use sugar and wheat flour for
various purposes: making bread, fritters, wet cakes, pastries, and others. The blue triangle
brand flour manufacturer puts the label "WHEAT FLOUR FOR ALL PURPOSE" on its
packaging. Sugar brand "Gulaku" also communicates its product as a raw material and can
be used for a variety of processed foods. This trick is used in the hope that consumers can
recognize the multi-functionality of sugar and wheat flour.
Nurjannah (2000) surveyed breakfast cereal consumption patterns of Hero
Supermarket visitors, the results can be seen in the following table 14.2. approximately 59%
of respondents consume breakfast cereals between 2 to 7 times a week. This frequency
category is considered a frequent category. So among these respondents, some consume
cereals every day. (Ujang Sumarwan, 2002)
Fitriana (2002) conducted a survey of consumers who consume organic vegetables in
three cities: Jakarta, Bogor and Bandung. Organic vegetables are vegetables grown without
the use of chemical fertilizers and pesticides. The survey results show that 25% of the total
respondents consume organic vegetables every day, 33% of respondents consume between 2
to 6 days a week, and 23% of respondents consume only once a week. The full results can be
seen in table 14.3. (Ujang Sumarwan, 2002)
Sumarwan (1997) also conducted a food consumption survey of low-income families
in cities and villages. A neighborhood in Bogor city was selected to represent the city, and a
village in one of the sub-districts of Bogor district was selected to represent the countryside.
This research is different from the research described in the previous tables. This study
interviewed one household member about all types of food consumed by all family
members. Whereas previous research interviewed a respondent about the amount of food
consumed by a consumer.
Sumarwan's (1997) research revealed household food consumption. This study asked
about the type of food and the number of grams of food consumed by all family members
during the past 24 hours. The amount of food consumed by all family members was
expressed in grams per capita per day.
4. Post Consumption
In every consumption decision process, consumers usually do not stop at the
consumption process. Consumers will also carry out an evaluation process of the
consumption they have made. This is what is known as the post-consumption evaluation
stage.
The results of the post-consumption evaluation process result in a conclusion,
whether consumers are satisfied or dissatisfied with the product or brand they bought.
Consumer satisfaction will encourage consumers to repurchase and reconsume the product.
Conversely, a feeling of dissatisfaction will cause consumers to be disappointed and stop
repurchasing the product.
Several notions of satisfaction are conveyed by several marketing experts in Ujang
Sumarwan (2002) as follows:
a. Engel, Blacwell and Miniard (1995, p. 273) define satisfaction "satisfaction is defined here
as a post-consumption evaluation that a chosen alternative at least meets or exceeds
expectations".
b. Mowen and minor (1998, p. 419) define satisfaction as "consumer satisfaction is defined as
the overall attitutude consumers have toward a good or service after they have acquired and
used it. It is a postchoice evaluative judgment resulting from a specific purchase and the
experience of using / consuming it.=
5. Product Disposal Process After Consumption
After the consumption process, the product disposal process follows. In this product
disposal process, there is a distinction between durable goods and non-durable goods. For
durable goods, there is full consumer intervention, whether the goods are stored back in the
warehouse or disposed of. As for non-durable goods that are used up immediately, it usually
does not cause problems for consumers because these products will run out in time due to
continuous use by consumers. But consumers need to think about the place of disposal so as
not to cause environmental problems.
6. Consumer Satisfaction
Customer satisfaction has become a central concept in business and management
discourse (Tjiptono and Chandra, 2005: 192). Customers generally expect products in the
form of goods or services consumed, so that they can be received and enjoyed with good or
satisfactory service (Assauri, 2003: 28). Customer satisfaction can shape perceptions and
positively position the company's products in the eyes of its consumers/customers.
Satisfaction can be defined as an effort to fulfill something or make something
adequate (Tjiptono and Chandra, 2005: 195). According to Oliver (in Barnes, 2003: 64),
satisfaction is the customer's response to the fulfillment of needs; while Kotler (2003: 61)
defines satisfaction as a person's feeling of pleasure or disappointment experienced after
comparing the perception of the performance or results of a product with his expectations.
At this time many companies are focusing on improving company performance by
increasing consumer expectations and providing conformity with their performance. Can It
is said that, currently companies are heading towards the concept and strategy of Total
Customer Satisfaction (TCS) or total customer satisfaction. (Kotler, 2003: 62).
The TCS (Total Customer Satisfaction) concept emphasizes t h e importance of
goals and high satisfaction or very satisfied so that consumers are not easily tempted by
other offers. According to Wahyudin and Muryati (2001: 192) for customer-minded
companies, satisfaction is both a goal and a marketing trick. There are various tools to track
and measure customer satisfaction, namely complaints and suggestions systems, customer
satisfaction surveys, stealth shopping, and lost customer analysis.
According to Gummesson (in Tjiptono and Chandra, 2005: 10) emphasizes that
services are something that can be exchanged but are often difficult to experience or feel
physically. In line with that, Kotler (2003: 444) states that service is any action or benefit
that can be offered by one party to another which is essentially intangible and does not result
in ownership of something. Its production may or may not be associated with a physical
product. There are four characteristics of services that greatly influence the design of
marketing programs, namely intangibility, inseparability, variety, and perishability.
When a consumer has decided which alternative product / service to choose, he will
make a purchase. Purchases include consumer decisions about what to buy, whether to buy
or not, when to buy, where to buy, and how to pay. This includes the store / supermarket
where he will buy. Whether he pays cash or installments. So what must be considered here is
that the desire to buy a product often has to be canceled for several reasons, namely as
follows:
a. The product/service to be purchased is not available, making consumers deterred and no
longer interested in buying the product.
b. Consumer motivation changes, consumers sometimes feel suddenly that their needs can
be met without having to buy the product, or there are other more pressing needs that
must be met first.
c. Conditions and situations suddenly change: suddenly the price goes up and becomes
expensive without us knowing beforehand, so there is not enough money to buy the
product.
7. Main Objective of Customer Satisfaction
Achieving the highest level of customer satisfaction is the ultimate goal of
marketing. In fact, much attention has recently been paid to the concept of "total"
satisfaction, which implies that achieving partial satisfaction is not enough to keep
customers loyal and coming back. When customers are satisfied with the service they
receive during the transaction process and are also satisfied with the goods or services they
receive, they are more likely to come back and make other purchases and recommend the
company and its products to their friends and family. They are also less likely to turn to the
company's competitors. Maintaining customer satisfaction over time will foster good
relationships with customers, which can increase company profits in the long run.
However, companies must be careful not to fall into the trap of believing that the
customer must be satisfied without the need to be satisfied no matter what the cost. Not all
customers are of equal value to the company. Some customers deserve better attention and
service than others. There are customers who will never give feedback no matter how much
attention we give them, and no matter how satisfied they are. Thus, enthusiasm about
customer satisfaction must be supported by more rigorous analysis.
The theoretical construction of "satisfaction" indicates a condition of pleasure, relief
and not disappointment, because the desire of the heart has been fulfilled. Academically, the
word satisfaction is a concept that can be operationalized and developed according to the
problems and research objectives. Satisfaction is operationally defined by Kotler and Keller
(2006) as a feeling of pleasure or disappointment that comes from comparing the perception
(perception) of the results (performance) of a product with its expectations (expectation). If
the product performance of the consumption experience is below consumer expectations,
then this condition indicates dissatisfied. If the product performance of the consuming
experience is in the same position as consumer expectations, then this condition indicates
satisfied, and if the product performance of the consuming experience is above consumer
expectations, then this condition indicates very satisfied. The consequence of this definition
is that the measurement of satisfaction must be based on the gap between consumer
expectations and experience, without having to question the dimensions or indicators used as
a measure of customer satisfaction. Implicitly, this concept must fulfill the assumption that
consumers already have expectations of the goods and services to be consumed, and in fact,
this assumption is not always fulfilled.
Satisfied conditions can also be known by comparing conditions between before and
after consumption. The position before, is indicated by expectations related to the tendency
and reaction to various related product attributes. Meanwhile, within a certain time span,
consumers can experience changes in satisfaction conditions, as a result of changes in
perceptions of the satisfaction attributes themselves. The after position, indicated by the state
of the consumer after finishing consuming, whether what is experienced can fulfill what is
expected or not. (Kotler, 2004)
In relation to the boundaries of satisfaction, Giese and Cote (2000) explicitly
formulate three important interrelated points, namely: summary of affective reactions from
various intensities of stimuli, limited in a limited time span, focused on focal aspects of the
product consumed. This view was born as a paradigm that has been developed until now,
known as the "disconfirmation paradigm". This paradigm believes that consumers are
satisfied after comparing expectations and experiences. This paradigm is known as
Consumer Satisfaction/Dissatisfaction (CS/D) which was initiated and widely developed by
Oliver. This paradigm is then widely used to determine service failure and recovery,
including in determining complaint handling, to measuring loyalty (Mc Collough, Beryy,
and Yadav, 2000, Nyier 2000; Yuksel, 1998). This paradigm is in line with the "descrepency
theory" which sees a person's satisfaction by comparing, whether there is a difference,
between what is obtained and what is expected.
In relation to satisfaction, Kotler and Keller (2006) implicitly believe in three things:
customer value, satisfaction and loyalty. The higher the value received by customers, the
higher the level of satisfaction, and as a result, customers will be more loyal. While
customer value is defined as the ratio between Total Value received and Total Cost.
Therefore, an increase in price will not necessarily reduce satisfaction, if marketers can
provide more value than the costs that arise due to the price increase. For managerial
purposes, it is necessary to understand a perspective on satisfaction that is different from
academics.
Fornell et al. (1996) in their study stated that: first, overall customer satisfaction is
the result of the evaluation of the current consumption experience derived from the
reliability and standardization of services; second, overall customer satisfaction is the result
of comparing the level of satisfaction of similar businesses, and third, that overall customer
satisfaction is measured based on experience with indicators of overall expectations,
expectations related to habits, and expectations related to the reliability of these services.
Oliver and De Sarbo (1988) view the level of satisfaction (satisfaction) arises
because of a special transaction between producers and consumers which is a psychological
condition that results when emotional factors drive expectations and are adjusted to previous
consumption experiences (perception). In addition, according to Zeithaml et al. (1996)
customer satisfaction is a comparison between expected service (expectations) and
performance (perceived performnce).
Apart from the well-known expectancy disconfirmation model theory, there are still
several theories about satisfaction, namely equity theory and attribution theory. According
to equity theory, a person will feel satisfied if the ratio of the results (outcomes) he gets
compared to the inputs used is felt to be fair or fair. In other words, satisfaction occurs when
consumers feel that the ratio of results to inputs (outcomes compared to inputs used) is fair
or just inputs) proportional to the same ratio that other people get (Oliver and De Sarbo, 1988),
Meanwhile, attribution theory comes from Weiner's theory (1971) which was
developed by Oliver and De Sarbo (1988) and Engel et al. (1990). Long before this Oliver,
R.L, 1999, had stated that the approach to satisfaction can be seen from two sides, namely
satisfaction as an outcome (outcome) and satisfaction as a process (Process) where service
providers provide services to consumers. This theory also states that there are three
dimensions that determine the success or failure of the outcome, so that it can be determined
whether a purchase is satisfactory or unsatisfactory. The three dimensions are:
1. Stability or variability. Whether the causal factor is temporary or permanent.
2. Locus of causality. Whether the cause is related to the consumer (external attribution) or to
the marketer (internal attribution). Internal attribution is often related to the ability and
effort made by the marketer, while external attribution is related to various theories such as
task difficulty and luck.
3. Controllability. Whether the cause is within control or is inhibited by external factors that
cannot be influenced.
Customer Satisfaction in the B2B context also comes with various findings. As
stated by Geyskens et al (1999) noted that despite the significant focus on satisfaction in the
existing literature, there is no consensus on how satisfaction should be conceptualized and
measured. For example, Schellhase et al (2000) consider the satisfaction of the firm as the
result of complex processing of information, a The key is the evaluation of the business
relationship based on performance comparison targets (such as expectations and
perceptions).
In a substantive study, Homburg and Rudolph (2001) developed and assessed a
satisfaction measure with seven dimensions in 12 countries, w h i c h examined three roles
in purchasing involving various departments with different interests and criteria in assessing
suppliers. It was found that handling order, including confirmation and speed of delivery,
and salesperson interaction were the most influential criteria. Differences were found among
the members of the purchasing center.
In addition, some researchers consider that customer service and satisfaction are
assessed from a network or B2B perspective (e.g. Holmund and Kock, 1995; Tikkanen et al.,
2000). They place importance on three dimensions of service quality in this context,
consisting of: economic, functional and technical. Another interesting model is Tikkanen et
al's (2000) look at the relational and contextual aspects of customer satisfaction and
dissatisfaction in B2B markets. They observe that customer satisfaction occurs in a buyer-
seller relationship in a network context and that satisfaction from both parties is a
prerequisite for forming a relationship. What interested them was the context of the buyer-
seller relationship in the impact of inter-organizational industrial relations, i.e. in an
organizational structure that influences the cooperation, interaction and buying and selling
relationship processes of different departments and of key people who play a role in the
buying and selling process. The above discussion illustrates that there is no clear consensus
on the dimensions of service satisfaction that apply in a B2B context.
Customer satisfaction survey measures usually use statement techniques and Likert
scales. Customer The product also does not disappoint consumers. Consumers feel neutral
towards the product.
c. The product functions worse than expected, or expectations exceed the level of consumer
satisfaction. This is what is referred to as negative disconfirmation. If this happens,
consumers are not satisfied and will feel disappointed.
Consumers will have expectations about how the product should function
(performance expectation), these expectations are quality standards that will be compared
with the function or quality of the product that consumers actually feel. The product function
that consumers actually feel (actual performance) is actually the consumer's perception of
the quality of the product. In evaluating the quality of a product or service, consumers will
assess various attribute dimensions as described by table 6.2.
9. Loyalty
In the marketing literature, loyalty has been widely recognized as the most important
(Oliver, 1999; Samuelsen and Sandvik, 1997; Howard and Sheth, 1969). Reichheld (1996)
studied the positive profit effects of having a loyal customer base. Aaker (1991) also
discussed the role of loyalty in the marketing process, particularly in relation to brand
equity. He noted that brand loyalty can reduce marketing costs. Fornell and Wernerfelt
(1987) note that the cost of customer retention can substantially reduce the acquisition rate
of their customers. In addition, brand loyalty can result in positive recommendations (word
of mouth), higher purchase rates and is one of the most important competitive strategies.
Despite the fact that brand loyalty has important managerial implications, there are
still significant gaps and differences both in terms of conceptual and empirical facts.
(Chaudhuri and Holbrook, 2001; Lau and Lee, 1999; Oliver, 1999; Fournier and Yao, 1997).
Similarly, the concept of loyalty in the B2B context is also unclear even though There are
different ways to redefine and measure in the B2B market.
Oliver (1999) defines loyalty as a deeply held commitment to repurchase or
repatronise a preferred product/service consistently in the future, thereby causing repeat
purchases of the same brand, even though situational influences and marketing efforts have
the potential to cause switching behavior. This definition emphasizes the two main aspects
of brand loyalty that have been the concern of previous research on the concept: the
behavioral aspect and the attitudinal aspect. The behavioral aspect of loyalty refers to repeat
purchases of the brand, while the attitudinal aspect of loyalty refers to the dispositional level
of commitment (related to some of the brand's distinctive values). The attitude behind the
purchase is very important because it encourages behavior. Whereas behavioral loyalty is
partly determined by situational factors (such as the availability of the brand) and attitudinal
loyalty is more enduring. Thus it is widely recognized that the components of loyalty
include two things, namely attitudinal and behavioral components.
Jacoby and Kyner (1973) proposed the definition of brand loyalty is a biased (non-
random) condition of behavior which is a response (e.g. buying) expressed over time by
some decision-making units (a person or a group of people) with respect to one or more
alternative brands (from a set of such brands), and is a function of psychological processes
(decision-making, evaluative).
Bloemer and Kasper (1995) have studied the difference between "true" and "false"
loyalty in terms of an "inertia effect". True loyalty means, in addition to repeat purchases, a
true commitment to the brand. Oliver (1997, 1999) also uses the notion of "commitment" in
research on the relationship between satisfaction and brand loyalty. Dick and Basu (1994),
in their conceptual paper, point out that while the concept of loyalty can be applicable in a
variety of contexts, most researchers have focused on issues related to loyalty measurement.
They introduced the concept of "relative attitude" as a means to provide a better theoretical
foundation for building loyalty. Relative attitude refers to "a high favorable attitude
compared to potential alternatives". They also stated that a relatively low attitude in repeat
purchases would connote an absence of loyalty, while a low relative attitude with high
repeat purchases indicates false loyalty.
Bloemer and Kasper (1995) similarly suggest that one should explicitly take into
account the consumer's level of commitment to the brand when he makes a repurchase of a
brand. So repeating purchase behavior alone does not mean consumers are loyal to the
brand. True loyalty implies commitment to the brand and not just repurchase by inertia.
Consumers who repurchase a brand due to inertia can easily be persuaded to switch to
another brand when a price cut or coupon is offered. Thus, a relative and favorable attitude
not just repurchase is a prerequisite for loyalty.
Across the literature, states between customer satisfaction and loyalty often occur
both at the "transaction-specific" level and at the "overall" level (Oliver, 1999; Bitner and
Hubbert, 1994). Their research findings have offered strong evidence that there is a certainty
and positive relationship between customer satisfaction and behavioral intentions. Similarly,
Anderson and Sullivan (1993) also found that repurchase intentions are strongly associated
with satisfaction statements across product categories. But in the study of Papassapa
Rauyruen and Kenneth E Miller, Markus Groth (2009) shows that perceived service quality
variables can have a direct effect on loyalty attitudes and B2B customer purchase intensity
without being mediated by satisfaction.
10. Loyalty Brand
Consumers who are satisfied will then become consumers who are loyal to the product
or brand consumed, by repurchasing the product. Loyal consumers are the hope for every
producer. To support this, producers conduct marketing communications in order to create
brand loyalty.
Brand loyalty (band loyalty) is defined as a positive attitude of a consumer towards a
brand, so that consumers have a strong desire to repurchase the same brand now and in the
future. Brand loyalty is closely related to consumer satisfaction. The more satisfied a
consumer is with a brand, the more loyal they will be to that brand.
In Ujang Sumarwan (2002), Mowen and Minor ( 1998) suggest that there are two
approaches to understanding brand loyalty, namely with behavioral approaches to brand
loyalty and attitudinal measures of brand loyalty. The behavioral approach sees brand
loyalty based on brand purchases. The proportion-of purchase method is often used to
measure brand loyalty in consumer research. This method asks consumers about product
purchases over a certain period, for example six months or a year. Then the number of times
a brand is purchased is recorded. Brand loyalty is determined based on the proportion of
brands purchased compared to the total number of purchases. For example, if more than
50% of purchases during the period were of brand A, then the consumer is considered to be
a brand loyalist loyal to brand A. Brand loyalty is divided into t he following categories:
1. Undivided loyalty : AAAAAAA
2. Occasionally :AABAAACAADAA (occasional switch)
3. Switch loyalty : AAAAAABBBBBA
4. Divided loyalty : AAAABBBAABBB
5. The brand is not different (brand indifference): ABCDACDBCABC
The behavioral approach does not reveal the reasons why consumers become loyal to
a product and brand. Purchasing the same brand continuously over a period of time does not
describe true brand loyalty or only repeat purchases. Repurchase only describes repeated
buying behavior for a brand. Does not reflect consumer feelings towards the brand. To
overcome these weaknesses, a second approach was developed, namely measuring attitudes
towards brand loyalty. This approach determines brand loyalty based on consumer attitudes
and behavior. Consumers who are loyal to a brand are consumers who say they really like
the brand and then buy and use the brand. Brand loyalty will lead to brand commitment,
which is the emotional and psychological closeness of a person to a product.
Hamdi (1999) examined milk consumption behavior in Bandung. And revealed the
actions taken by respondents if the brand of milk they wanted to buy was not available at the
place of purchase (table 8.1) the results of his research are shown in the following table.
Respondents were divided into two categories. The first is respondents who are loyal to the
brand, they will delay the purchase and look for the brand. The second is those who are not
loya, they will look for other brands or buy other types of milk, or buy other drinks. (Ujang
Sumarwan, 2002)
The results of Murti's research (2001) state that most respondents who smoke are
loyal to the cigarette brand they smoke, 71% of respondents stated that they would not buy
cigarettes if they did not get the brand they could smoke. Only 255 respondents bought other
brands of light clove cigarettes.
11. Positive Recommendation (The Positife Word Of Mouth)
Positive Word Of Mouth, broadly defined as a type of informal communication
between the parties about the evaluation of goods and services (Dichter, 1966) and is
considered one of the major forces in the market (Bansal and Voyer, 2000). Word of Mouth
(WOM) is used to facilitate the sale of some products, such as movies (Mizerski, 1982) or
cars (Swan and Oliver, 1989). The importance of Word of mouth (WOM) is based on the
fact that consumer choices are usually strongly influenced by Word of mouth (WOM)
especially when the purchase is considered important (Lutz and Reilly, 1973). This is
explained and supported by the fact that consumers prefer to rely on informal sources and
personal communication (other consumers for example) in making purchasing decisions
rather than on formal and organizational sources such as advertising campaigns (Bansal and
Voyer, 2000). Indeed, word of mouth (WOM) is particularly effective because the source of
the information is unfavorable to the consumer's subsequent actions (Schiffman and Kanuk,
1997) and, as a result, fellow consumers are regarded as more than just a source of
information (Kozinets, 2002). Consumers value word of mouth (WOM) because it is seen as
more reliable and trustworthy than other sources of information (Day, 1971).
Word of mouth (WOM) in marketing, encompasses various subcategories, including
buzz, blogs, viral, grassroots, brand advocates, cause influencers and social media
marketing, ambassador programs. Due to the personal nature of communication between
individuals, it is believed that information products communicated in this way will have an
additional layer of credibility. Research points to individuals who are more likely to believe
that WOM can be a more formal form of promotional method and accept word of mouth
referrals, being more likely to believe that the communicator is speaking honestly and is
unlikely to have ulterior motives. Word of mouth (WOM) depends on the level of customer
satisfaction with the product or service, and on the level of perceived value.
To promote and manage word of mouth (WOM), marketers can use publicity
techniques and viral marketing methods to achieve the desired behavioral response.
Companies can focus on Brand Advocacy, people who proactively recommend their favorite
brands and products online and offline without being paid to do so. Influencer marketing can
also be used for potential recommenders and targets key individuals who have authority and
a large number of personal connections.
Marketers can place significant value on positive word-of-mouth, which can
traditionally be achieved by creating products, services and customer experiences that
generate worthy conversations. Although the practice of positive word-of-mouth in
marketing is a relatively new method, marketers have always hoped to make positive word-
of-mouth a profitable endeavor.
