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Effect of Brand Image and Customer Value on Gojek

Go-Ride Customer Satisfaction in Manado City

Cynthia Claudia Poli

and Riane Johnly Pio

Post Graduate Program, Universitas Sam Ratulangi, Manado, Indonesia

Business Administration Program, Universitas Sam Ratulangi, Manado, Indonesia

Keywords: Brand image, customer value, customer satisfaction

Abstract: The purpose of this study was to determine the effect of brand image and customer value on customer

satisfaction with Gojek Go-Ride transportation service users in Manado City. The population of this study

were students using Gojek Go-Ride transportation services in Manado City. The samples were 100 students

from Sam Ratulangi University using Gojek Go-Ride transportation services. Primary data was collected

using a questionnaire and analyzed using Structural Equation Modeling (SEM) with Partial Least Square

(PLS) method using SmartPLS software. The results showed that partially the brand image had an effect on

customer value and customer satisfaction. Customer value has a significant effect on customer satisfaction,

so the management of Gojek Go-Ride must be able to increase customer value, and improve brand image by

providing maximum service to customers.

1 INTRODUCTION

In transportation services, there is an increasing

number of vehicles, both vehicles, passenger cars,

buses, freight cars, and motorcycles each year. Of

the four modes of transportation, the Central Agency

on Statistics data shows that the highest number of

motorbikes from 2015 to 2017, reaching 14,149,526

units, an increase of 14%.

Motorcycles today has a function as public

service vehicles which were used to transport people

or goods and charge a fee agreed. The transport of

this type is known as a motorcycle taxi or ojek in

Indonesia. Along with the development of

technology, there are currently online application-

based transportation innovations that introduce

motorcycle taxi booking services via smartphones.

One of the online transportation service companies

of the motorbike is Gojek.

Gojek is the company leading the revolution in

the motorcycle taxi industry and pioneered mobile

application-based motorcycle taxi services through

its Go-Ride service. The use of Gojek is progressing

included in Manado. Based on customer data, Gojek

was award as a Top Brand Award, because Gojek

was at the highest percentage in 2016 amounted to

80.8%. However, the following year in 2017 and

2018 Gojek decreased, by 59.2% and 44.9%

respectively. The Top Brand Award surveyed, one

of the cities was Manado, so it can be assumed that

Gojek in Manado decreased customers.

1.1 Objectives

The objectives of this study are:

1. To analyze the influence of brand image on

customer satisfaction users of Gojek Go-

Ride transportation services.

2. To analyze the influence of brand image on

customer value users of Gojek Go-Ride

transportation services.

3. To analyze the influence of customer value

on customer satisfaction users of Gojek Go-

Ride transportation services.

2 LITERATURE REVIEW

2.1 Brand Image

According to Kotler and Keller (2009), brand image

is the perception and belief held by consumers, as

reflected by the association that facilitates in the

customer’s memory, which can always be

266

Claudia Poli, C. and Johnly Pio, R.

Effect of Brand Image and Customer Value on Gojek Go-Ride Customer Satisfaction in Manado City.

DOI: 10.5220/0010673600002967

In Proceedings of the 4th International Conference of Vocational Higher Education (ICVHE 2019) - Empowering Human Capital Towards Sustainable 4.0 Industry, pages 266-271

ISBN: 978-989-758-530-2; ISSN: 2184-9870

understood when listening to slogans and

remembering consumers imagined. According to

Tjiptono (2015), brand image is a series of

associations perceived by individuals all the time,

resulting in the direct or indirect experience of a

brand. Schiffman and Kanuk (2000) suggested the

factors forming the brand image, namely the quality

or quality, can be trusted or relied upon, the risk,

price and own image.

2.2 Customer Value

According to Kotler (2005), customer value is the

difference between total customer value and total

customer cost where total customer value is a set of

benefits expected by customers from a particular

product or service, and total customer costs are a set

of costs expected by customers incurred to evaluate,

obtain, use and discard the product or service. The

concept of customer value gives a picture of a

company’s customers who consider what they want

and believe that they benefit from a product that they

get (Lapierre, 2000). According to Sweeney and

Soutar (2001), customer value consists of four

dimensions, namely emotional value, social value,

quality/performance value.

2.3 Customer Satisfaction

According to Tjiptono (2008), customer satisfaction

is the difference between expectations and perceived

performance or results. Satisfied customers will

show great opportunities to make repeat purchases

or buy other products in the same company in the

future. They will also express the goodness of the

product and the company concerned to others.

Customers experience various levels of satisfaction

and dissatisfaction after experiencing each service

according to the extent to which their expectations

are met or exceeded. Because satisfaction is an

emotional state, their post-purchase reaction can be

anger, dissatisfaction, aggravation, neutrality,

excitement or pleasure (Lovelock and Wright,

2005). According to Kotler (2009), satisfied

customers have characteristics, are loyal to the

product; there is positive word of mouth

communication, the company becomes the primary

consideration when buying other brands.

3 FRAMEWORK AND

RESEARCH HYPOTHESIS

3.1 Prior Research

Research from Tsai et al., (2010) with the title The

Effect of Customer Value, Customer Satisfaction,

and Switching Cost on Customer Loyalty: An

Empirical Study of Hypermarkets in Taiwan. The

results showed that customers with more positive

perceptions about the value of products/services

have more favourable evaluations, higher

satisfaction, and loyalty. Greater satisfaction

combined with more significant concern over non-

monetary switching costs also increases customer

loyalty to hypermarkets.

Suliyanto (2013) with the title Effect of

Customer Value and Customer Satisfaction on

Customer Loyalty: Switching Cost as a Moderation

Variable. The results showed that customer value

had a positive effect on customer satisfaction,

customer value and customer satisfaction had a

positive effect on switching cost loyalty did not

moderate the relationship between customer value

and customer satisfaction on loyalty.

Andries et al., (2019) with the title The Influence

of Online Community Experience on Brand Image

and Brand Engagement in the Formation of Value

Co-Creation (Study at Gojek Community in

Manado). The results showed that there was an

online community experience relationship through

brand image and brand engagement towards value

co-creation. The implications of this research can

provide a deep understanding of online community

experiences, brand image, brand engagement and

value co-creation through online community studies

in Manado.

3.2 Framework and Hypothesis

Figure 1: The Empirical Research Model.

Effect of Brand Image and Customer Value on Gojek Go-Ride Customer Satisfaction in Manado City

267

As stated in Figure 1, the hypothesis is:

H1: Brand image influence on Gojek Go-Ride

customer satisfaction.

H2: Brand image influence on Gojek Go-Ride

customer value.

H3: Customer value influence on Gojek Go-Ride

customer satisfaction.

4 METHODOLOGY

This type of research is quantitative research,

namely research that analyzes data quantitatively

/statistically, to test the hypotheses that have been

set then interpret the results of the analysis to obtain

conclusions. The study was conducted at Sam

Ratulangi University with its address on Jalan

Kampus, Bahu, Kleak, Malalayang, Kota Manado.

The population in this study were students of

Sam Ratulangi University, Manado. While the

sample is part of the number and characteristics

possessed by the population. The sample is Sam

Ratulangi University Manado Student, who uses

Gojek Go-Ride transportation. If a large population

and research are not possible to study everything in

the population, for example, limited funds,

workforce and time, then research can use samples

drawn from that population (Sugiyono, 2008). The

population in this study is vast in number then to

determine the number of samples using the formula

Lemeshow:

(1)

N : number of samples

1-α/2

: normal standard values., (α: 0,05,

and Z: 1,96)

P(1-p) : estimated population proportion (P: 0,5,

and P(1-p): 0,25)

d : tolerated deviations (10%)

Through the formula above, the number of samples

to be used is:

(2)

Based on the calculation results, the sample obtained

using the above formula was 96.04 but rounded up

to 100 people.

SmartPLS software was applied to assist the

Partial Least Square (PLS) analysis in order to

determine the effect of brand image variables on

customer satisfaction, customer value variables on

customer satisfaction, trust variables on customer

satisfaction, and customer satisfaction variables on

customer loyalty. The steps used for analyzing the

data after taken questionnaire were a variable table

of brand image distribution, a variables table of

customer value distribution, a trust distribution

variables table, a variable table of customer

satisfaction distribution, a variable table of customer

loyalty distribution, construct path diagram and

computational process.

5 RESULT

5.1 Validity

This study uses an instrument in the form of a

questionnaire using a Likert scale of five answer

choices, from strongly disagreeing choices to

strongly agreeing to choices. Before data from

questionnaire collection can be used for further

analysis, testing the validity of the instrument is

needed. For testing validity, convergent validity and

measurement models can be seen from the

correlation between the indicator scores with the

variable scores. Indicators are considered valid if

they have AVE (Average Variance Extracted) values

above 0.5 or show all outer dimensions have loading

values> 0.5 so that it can be concluded that the

measurement meets the convergent validity criteria

(Chin, 1995). Based on the results of the validity test

for the three variables studied, namely Brand Image,

Customer Value, and Customer Satisfaction are all

valid.

5.2 Reliability

(3)

Cronbach’s alpha and composite reliability values

are used to view the reliability test to test the

reliability of the instrument. Cronbach’s alpha value

and composite reliability value will be declared

reliable if it has a value> 0.7 (Vinzi et al. 2010).

Based on the results of the reliability test for the

three variables studied, namely Brand Image,

ICVHE 2019 - The International Conference of Vocational Higher Education (ICVHE) “Empowering Human Capital Towards Sustainable

4.0 Industry”

268

Customer Value, and Customer Satisfaction are all

reliable.

5.3 PLS Analysis Result

PLS analysis is an interpretation of a structural

model. This model presents the relationships

between research variables. The coefficient indicates

the magnitude of the relationship between one

variable with another. A significant influence

between the two variables is determined if the P-

value is <0.05. In PLS, there are two influences,

namely direct influence and indirect influence.

Table 1: PLS Results Direct Effect.

The direct effect test results, as presented in Table 1,

are as follows:

a. Effect of Brand Image (X1) on Customer

Satisfaction (Y1), obtained a structural

coefficient of 0.479 and P-value 0.000. Because

the P-value <0.05, indicates that there is a

significant influence between Brand Image (X1)

on Customer Satisfaction (Y1),

b. Effect of Brand Image (X1) on Customer Value

(X2), obtained a structural coefficient of 0.617

and P-value 0.000. Because the P-value <0.05,

indicates that there is a significant influence

between Brand Image (X1) on Customer Value

(X2).

c. Effect of Customer Value (X2) on Customer

Satisfaction (Y1), obtained a structural

coefficient of 0.406 and P-value 0.000. Because

the P-value <0.05, indicates that there is a

significant influence between Customer Value

(X2) on Customer Satisfaction (Y1).

In addition to testing the direct effect, PLS is

also known as an indirect effect. The following are

the results of indirect effects:

Table 2: PLS Results Indirect Effect.

Based on Table 2, there is an indirect effect as

follows:

The indirect effect between Brand Image (X1) on

Customer Satisfaction (Y1) through Customer Value

(X2), obtained the coefficient of the indirect effect

of 0.251 and P-value of 0.000 because P-value <0.05

then there is a significant indirect effect.

6 DISCUSSION

6.1 Effect of Brand Image on Customer

Satisfaction

For the results of the hypothesis found that Brand

Image has a significant effect on Customer

Satisfaction. The coefficient marked positive

indicates that the higher the Brand Image Variable

will affect the increase in Customer Satisfaction.

Brand image is something that is embedded in the

minds of customers. The better the perception in the

minds of customers of the brand image, customer

satisfaction will also be higher. Kambiz (2014)

suggests that customers feel satisfied with products

with a sharp brand image. A positive customer

image of a brand allows the customer to feel

satisfaction. This effect can be interpreted that the

better the brand image, the higher the customer

satisfaction.

Also found an indirect effect of 0.251, which is

significant. The coefficient marked positive

indicates that the higher the Brand Image Variable

will affect the increase in Customer Loyalty through

Customer Satisfaction.

6.2 Effect of Brand Image on Customer

Value

For the results of the hypothesis found that Brand

Image has a significant effect on Customer Value.

The coefficient marked positive indicates that the

higher the Brand Image Variable will affect the

increase in Customer Value. Customers will buy

products or services from companies that are felt to

be able to provide the highest value for customers in

meeting their needs.

Effect of Brand Image and Customer Value on Gojek Go-Ride Customer Satisfaction in Manado City

269

A high brand image will create high customer

value and reduce risk perception so that it will

increase consumer purchase intentions for a product

and ultimately motivate consumers to make

purchasing decisions. The results of this study are

following the findings by Hamidizadeh et al. (2011)

found that the image has a positive effect on

customer value.

6.3 Effect of Customer Value on

Customer Satisfaction

For the results of the hypothesis found that

Customer Value has a significant effect on Customer

Satisfaction. The coefficient marked positive

indicates that the higher the Customer Value

Variable will affect the increase in Customer

Satisfaction. Perception of value is very influential

on customer satisfaction. The more customers see

the benefits of services outweigh the costs or costs

incurred to obtain a service, the higher their

perception of the value of service, which in turn will

result in greater satisfaction. This research is also

following the theory put forward by Gale (1994) that

customer value is a perception of the value of the

quality offered is relatively high from competitors

will affect the level of customer satisfaction.

7 CONCLUSION

The result showed that the effect of brand image on

customer satisfaction was significant. The brand

image influenced high and low customer

satisfaction. Also, there is a significant indirect

influence of brand image on customer satisfaction

through customer value users of Gojek Go-Ride

transportation services. The influence of customer

value on customer satisfaction was significant, thus

high and low customer satisfaction was influenced

by customer value users of Gojek Go-Ride

transportation services; The influence of customer

value on customer satisfaction was significant. Thus

the high and low customer loyalty was influenced by

customer satisfaction users of Gojek Go-Ride

transportation services.

It is suggested that Gojek must maintain and

enhance a better brand image. As a consequence,

future customers will put more trust in their brand,

especially Go-Ride services. There is a need to

maintain a positive image of Gojek. This image

would be achieved by service accuracy and vigorous

social and mass promotions. Gojek must continue to

increase customer’s value in various dimensions.

The dimensions include price, quality, emotional

and social value to increase customer’s value and

satisfaction.

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