The Community Perception of Traditional Market Services in Pekanbaru

City, Riau Province

Puji Astuti, Febby Asteriani, Eka Surya Pratiwi and Thalia Amanda Putri

Department of Urban and Regional Planning, Universitas Islam Riau, Pekanbaru, Indonesia

Keywords:

Community Perseption, Level of Satisfaction, Modern Market, Traditional Market.

Abstract:

The market existence is one of the most apparent indicators of economic activities.The increasing of modern

market development in Pekanbaru cause changing public perception in shopping activity on the use of tradi-

tional market facilities. The study purpose is identify community perception of trading facilities on tradisional

market to formulate policies relating to improving market services to the community. The analysis technique

used quantitative descriptive analysis. Its analyzing the level of customer satisfaction and assessment of service

condition; complete and price certainty of goods, market comfort, market cleanliness, availability of facilities,

and market security. For traditional market services measured from sellers politeness, sellers readiness and

sellers friendliness. Based on research concluded the level of customer satisfaction in the traditional markets

is not satisfactory and assessment of service conditions is satisfactory.

1 INTRODUCTION

The traditional market is a traditional selling place

(hereditary), where the sellers and buyers meet, the

goods traded are dependent on the request of the

buyer (consumer), the price set is the agreed price

through a bargaining process, the trader as a producer

offers little above the standard price. In general, tra-

ditional markets are places for selling basic needs.

Usually traditional markets are active within certain

time limits, such as morning markets, afternoon mar-

kets, weekend markets and so on. Traditional markets

can be managed by the government or the private sec-

tor, the available facilities consist of wards, booths,

warehouses, shops, booths / kiosks, public toilets and

others around traditional markets. In the traditional

market, the buying and selling process takes place hu-

manely and communicates with high family values.

Traditional market as a city infrastructure that

must be managed regularly and continuously, its con-

dition is highly marginalized by the existence of a

modern market with its complete facilities and ser-

vices. Traditional markets, most of which are admin-

istered by the government, serve the segmentation of

middle-lows with inappropriate physical conditions

such as slum, muddy, crowded, etc (Linda, 2008;

Witell et al., 2011). Traditional markets are one of

the important sectors that support the people’s econ-

omy, the interests of small people to the upper mid-

dle class are accommodated (Wardoyo, 2009). Tra-

ditional markets are places where sellers and buyers

meet and are marked by transactions of sellers and

buyers directly.

Based on data released by the Association of In-

donesian Market Traders (APPSI) in 2005, the growth

of traditional markets was 8.01%, while the growth of

the modern market was 31.4% per year. The condi-

tion of traditional markets is increasingly marginal-

ized with the existence of a modern market with com-

plete facilities and services. Presidential Regulation

of the Republic of Indonesia No. 112 of 2007 con-

cerning the Arrangement and Development of Tradi-

tional Markets, Shopping Centers and Modern Stores

which were followed up by the Minister of Trade Reg-

ulation of the Republic of Indonesia No.53 / M-DAG

/ PER / 12/2008 concerning the Guidelines for the Ar-

rangement and Development of Traditional Markets,

Shopping Centers and Modern Stores is a manifesta-

tion of the government’s response to the conditions

of competition that occur between traditional mar-

kets and modern markets. These regulations regulate

a number of important matters, including the rules

for the provision of compulsory facilities for tradi-

tional and modern shop markets, location and licens-

ing rules, sales system rules and working hours, to

the rules of partnership with suppliers. Rules regard-

ing gradual administrative sanctions also apply to vi-

olations, ranging from written warnings, freezing to

Astuti, P., Rosadi, S., Asteriani, F., Pratiwi, E. and Putri, T.

The Community Perception of Traditional Market Services in Pekanbaru City, Riau Province.

DOI: 10.5220/0009146501690174

In Proceedings of the Second International Conference on Science, Engineering and Technology (ICoSET 2019), pages 169-174

ISBN: 978-989-758-463-3

169

revocation of business licenses(Dasgupta et al., 1994;

Bangia et al., 2008).

The recent development of Modern Markets and

Modern Stores in Pekanbaru City has increased

rapidly, resulting in the emergence of various public

perceptions in conducting shopping activities. The

limitation of traditional markets in facilitating the

completeness of facilities and infrastructure is an im-

portant issue in shifting community behavior in shop-

ping activities. This behavior is in the form of con-

sumer perceptions in terms of shopping satisfaction

and an assessment of traditional market service con-

ditions.

The customer’s perception of the quality of a ser-

vice and overall satisfaction has several indicators /

instructions that must be provided. Traders may smile

when they talk about goods or services, they might

say good things about goods or services. A smile is

proof that someone is satisﬁed, frowning instead re-

ﬂects disappointment. Both of the above smile and

say good things are manifestations or indicators of a

construct called customer satisfaction. Satisfaction is

the level of one’s feelings after comparing the per-

formance / results they feel with their expectations.

While according to (Kotler, 2002) satisfaction is a

feeling of pleasure or disappointment someone who

appears after comparing between perceptions / im-

pressions of the performance (or results) of a prod-

uct and its expectations. The level of satisfaction is a

function of the difference between perceived perfor-

mance and expectations. If the performance is below

expectations, the customer will be disappointed. If

performance is in line with expectations, customers

will be satisﬁed. Whereas if the performance exceeds

expectations, customers will be very satisﬁed. Cus-

tomer expectations can be shaped by past experiences,

comments from relatives and promises and market-

ing information and things. Satisﬁed customers will

be longer, less price sensitive and have good com-

ments. To create customer satisfaction, it must create

and manage a system to obtain more customers and

the ability to retain customers (Hill, 1966; Price et al.,

2015).

According to Sari (2011) to assess the level of

customer satisfaction and assessment of market ser-

vice conditions can be seen from the completeness

of goods, certainty of the price of goods, quality of

goods, market convenience, market cleanliness, fa-

cilities and market security. As for the assessment

of market service conditions, it can be seen from the

courtesy of traders, merchant alertness and merchant

hospitality. To realize a clean, safe and comfortable

traditional market. Need to be supported by the avail-

ability of good facilities and infrastructure. Facilities

are supporting facilities that function for the imple-

mentation and development of economic, social and

cultural life, such as parking facilities, health facili-

ties, facilities of worship. Infrastructure is a complete

physical environment that allows the market environ-

ment to function properly, such as landﬁlls, drainage

networks, sewerage drains, signs.

2 RESEARCH METHODS

Perception is the presumption of something or a cer-

tain social condition based on the social construction

created in the community. Perception is an experi-

ence or assessment of objects, events, or relationships

that are obtained by deducing information or convey-

ing messages (Hariyono, 2007). The market which is

the center of the crowd is perceived by everyone dif-

ferently. As a means of shopping for the community,

the market is able to create perceptions of each visitor

about their own functions and beneﬁts. The results of

this study will explore the perception of community

shopping in the use of trade facilities in Pekanbaru

City.

The purpose of this study is to determine the pub-

lic perception of traditional market services in Pekan-

baru City. The scope of the area in this study is the ad-

ministrative area of Pekanbaru City consisting of ten

traditional markets managed by the Pekanbaru City

Market Service (Pekanbaru, 2013b), namely:

• Sukaramai Market in Jendral Sudirman Street,

Pekanbaru Kota District

• Inpres H. Agussalim Market in H. Agussalim

Street, Pekanbaru Kota District

• Senapelan Market in Jendral Ahmad Yani Street,

Sukajadi District

• Limapuluh Market in Sultan Syarief Kasim Street,

Limapuluh District

• Bawah Market in Saleh Abbas Street, Senapelan

District

• Sail Market in Hangtuah Street, Sail District

• Rumbai Market in Kayangan Street, Rumbai Pe-

sisir District

• Labuh Baru Market in Durian Street, Labuh Baru

District

• Simpang Baru Market in Soebrantas Street, Tam-

pan District

• Cik Puan Market in Tuanku Tambusai Street,

Sukajadi District

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170

The approach used in this study uses descriptive

research methods by identifying object of research

through a description, understanding or explanation

of the analysis that is measurable or not measurable.

The ﬁeld survey was carried out by distributing ques-

tionnaires to the public/buyers on traditional markets

that were carried out in the morning at 06.00 am until

12:30 am on April 8-23, 2015. The hours were chosen

because the majority of traders sell and make buying

and selling transactions to buyer at this time.

The sampling technique used is accidental sam-

pling. According to Sugiyono (2010) accidental sam-

pling is a technique of determining samples based on

chance, that is, anyone who accidentally meets with

a researcher can be used as a sample, if the person

who happened to be found is suitable as a data source.

According to (Arikunto, 2002) the determination of

sampling is if less than 100 is better taken all until

the research is population research. If the number of

large subjects can be taken between 10-15% or 20-

55% or more depending on the ability of researchers

related to time, energy and funds, the area of observa-

tion of each subject because it involves a lot of funds,

and the size of the risk by researchers. The number of

samples to be studied is calculated using the Slovin

formula (Sangaji, 2010):

n =

1 + Ne

(1)

n = sample size

N = population size

e = critical value (accuracy limit) desired (0-10%)

According to data obtained from Pekanbaru

Central Statistics Agency (BPS) (Pekanbaru, 2013a),

the population of Pekanbaru in 2013 was 999,031

people. Then the amount is calculated into the Slovin

formula with an estimated error of 6% so that it can

be known as follows:

n =

999.031

1+999.031(6%)

n =

999.031

1+9943(0.06)

n =

999.031

3597.5

n = 277,7400 = 278 people

Based on these calculations the total number of

samples to be taken is 278 respondents, then for 8

traditional markets consists of 28 respondents and 2

markets with 27 respondents. Distribution of ques-

tionnaires was conducted in ten traditional markets in

Pekanbaru City. In carrying out this research, data

collection techniques carried out were the distribution

of questionnaires or interviews directly with respon-

dents, observations or direct observations in the ﬁeld

to ﬁnd out market conditions to traders, and documen-

tation. To collect data in this study follows variables

and indicators that have been extracted from theories

about traditional market services as presented in Table

Table 1: Research Variables

Research Ob-

jectives

Variables Indicators

Identify the

level

of customer

satisfaction in

traditional

markets

Identiﬁcation

of availabil-

ity

and condi-

tion

of facilities

and

infrastructure

1. Completeness

of goods

2. Price Certainity

3. Quality of

Goods

4. Market Conve-

nience

5. Market Cleanli-

ness

6. Complete Facil-

ities

7. Security

Identify as-

sessments of

traditional

market service

conditions.

Identiﬁcation

of the role

of mar-

ket traders

towards

consumers

1. Courtesy of

merchants

2. Efﬁcacy of

traders

3. Hospitality of

traders

Field surveys are carried out by distributing ques-

tionnaires to the public / buyers. In traditional mar-

kets, this research was conducted in the morning at

06.00 WIB until 12.30 WIB on April 8-23, 2015. The

hour was chosen because the majority of traders sell

and buy and sell transactions to buyers at that hour.

3 RESULTS AND DISCUSSION

3.1 Distribution of Traditional Markets

in Pekanbaru City

Placement of market location will affect the range

of market services for users. Market placement will

also affect the perceptions of community shopping.

Pekanbaru City is a city with a population of 999,031

people. To fulﬁll their daily needs, the community

conducts buying and selling activities in traditional

markets. Pekanbaru City has ten traditional markets

under the management of the Pekanbaru City Govern-

ment, especially the Pekanbaru City Market Service.

The Community Perception of Traditional Market Services in Pekanbaru City, Riau Province

171

Figure 1 is the distribution of traditional markets in

Pekanbaru City.

Figure 1: Distribution of Traditional Markets Location in

Pekanbaru City

3.2 Characteristics of Respondents

The majority of consumers or respondents are female

(84.98%) are on average over 30 years old (75.54%).

The biggest traditional market user is housewife of

60.43%. The population of Pekanbaru City consists

of Malays, Minang, Javanese, Batak Tribe, the re-

maining various other tribes. Traditional market con-

sumers are dominated by Malays (48.92%) and Mi-

nang (32.37%) with the largest number of family

members owned by consumers (1-5.75%). The in-

come of visitors/buyers in traditional markets is be-

tween Rp. 1,000,000 - 2,900,000 (92.81%) and grad-

uated from senior high school (57.19%).

3.3 Identiﬁcation of Consumer

Satisfaction Levels in Traditional

Markets

Based on the answers of 278 respondents in all tra-

ditional markets in Pekanbaru City, for completeness

of the items respondents chose 75.54% at the satis-

fying level. This is because the fulﬁllment of all the

needs of consumers in buying all their needs. For cer-

tainty of the price of goods, highest percentage is at

57.55% where respondents choose unsatisfactory, this

is contrary to the characteristics of traditional mar-

kets, where in the process of bargaining is created

which has no ﬁxed price but consumers here pro-

vide sufﬁcient ratings high for certainty of the price

of goods. This is because the average price agreed

upon by the respondents with all the traders on the

market is almost the same, so the respondents chose

uncertain price.

The level of consumer satisfaction on the quality

of goods can be seen with the highest percentage of

respondents satisfying with a value of 76.98%, where

the respondents rated the basic needs here as having

good quality because basic goods always change with

new and fresh goods fresh supplied from West Suma-

tra Province and North Sumatra Province. For market

convenience the highest percentage of 70.86% of re-

spondents voted unsatisfactory because respondents

rated traditional markets on busy days visitors felt

very hot and jostling which resulted in inconvenience.

The level of customer satisfaction on market

cleanliness, the respondents chose 57.55% to be un-

satisfactory. This happened because respondents con-

sidered the cleanliness of the traditional market was

far from being adequate or satisfying, it was muddy

and smelly. However, in some traditional markets,

cleanliness has been regularly managed, although it

still needs to be improved. For complete facilities the

highest percentage is unsatisfactory with a value of

50.00%. This reﬂects the still many unsatisfactory

market facilities that can even be said to be inade-

quate. This is one of the weaknesses of the traditional

market. The level of consumer satisfaction with mar-

ket security, respondents chose 51.08% to be unsatis-

factory. This proves that there is still a lack of market

security felt by the respondents, especially the very

vulnerable cases of pickpocketing.

Figure 2: Graph of the Level Satisfaction of Consumer in

Traditional Market, Pekanbaru City

3.4 Assessment of the Conditions of

Service of Traditional Markets

The service quality of market facilities will provide

comfort to consumers who will come to shop. Factors

that become elements of service include courtesy of

merchants, merchant alertness and merchant friendli-

ness. Table 3 shows the community’s assessment of

traditional market services in Pekanbaru City.

Based on the answers of 278 respondents who

were in all traditional markets in Pekanbaru, the as-

sessment of the courtesy of traders in doing service,

the highest percentage was in the satisfactory choice

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172

Table 2: Level of Satisfaction of Traditional Market Consumers in Pekanbaru City

Answer

VNS NS S VS

A % A % A % A %

CG 4 1.44 22 7.91 210 75.54 42 15.11

PC 22 7.91 160 57.55 91 32.73 5 1.8

QG 1 0.36 41 14.75 214 76.98 22 7.91

MC 17 6.12 197 70.86 61 21.94 3 1.08

C 28 10.07 160 57.55 87 31.29 3 1.08

CF 12 4.32 139 50 119 42.81 8 2.88

MS 11 3.96 142 51.08 123 44.24 2 0.72

Note:

A: Amount; SL: Satisfaction Level; CG: Completeness of Goods; PC: Price Certainty; QG: Quality of Goods; MC: Market

Convenience; C: Cleanliness; CF: Complete Facilities; MS: Market Security; VNS: Very Not Satisfying; NS: Not Satisfying;

S: Satisfying; VS: Very Satisfying

Table 3: Assessment of Traditional Market Services in Pekanbaru City

ASC

Answer

VNS NS S VS

A % A % A % A %

CM 4 1.44 21 7.55 174 62.59 79 28.42

ET 5 1.8 18 6.47 185 66.55 70 25.18

HM 3 1.08 12 4.32 181 65.11 82 29.5

Note:

A: Amount; ASC: Assessment of Service Conditions; CM: Courtesy of Merchants; ET: Efﬁcacy of Traders; HM: Hospitality

of Merchants; VNS: Very Not Satisfying; NS: Not Satisfying; S: Satisfying; VS: Very Satisfying

Figure 3: Traditional Market Services Assessment Graph in

Pekanbaru City

of 62.82%. This is because the traders are quite polite

in serving the respondents and there is an interaction

that creates intimacy between the traders and buyers

and the traders use neat clothes, good words and al-

ways give a smile to the buyers. the results of the per-

centage to satisfy are quite high at 66.43%. Respon-

dents considered that when the respondents came to

the outlets or kiosks of the merchants, they were swift

and deft in welcoming and explaining the items avail-

able and had a quick response in serving the buyers.

Friendly is one way to attract customers or buy-

ers. This is what traders on the market do. So that

prospective buyers want to buy where they sell. The

assessment of merchant friendliness in service to con-

sumers is at a satisfactory level of 64.98%, where

the respondents are satisﬁed with the hospitality that

occurs due to direct interaction between sellers and

buyers. The hospitality of the merchants was felt

by consumers when the respondents passed the shops

or shops of the merchants, where they immediately

greeted the respondents to be able to stop by where

they were selling. The hospitality of traders is able to

provide a sense of family and comfort to the respon-

dents or buyers.

4 CONCLUSIONS

Based on the research, the conclusions are as follows:

• The distribution of traditional markets in Pekan-

baru City is in close proximity to the city center.

The Community Perception of Traditional Market Services in Pekanbaru City, Riau Province

173

• The level of community satisfaction with com-

pleteness, quality, safety, cleanliness and comfort

related to the condition of traditional markets in

Pekanbaru City is in a condition that is not satis-

factory and has not met expectations of the com-

munity.

• Community assessment of the merchant condi-

tions services has met criteria expected by the

community.

ACKNOWLEDGEMENTS

This research was supported by Departement of Ur-

ban and Regional Planning, Faculty of Engineering,

Universitas Islam Riau. We thank our colleagues from

Pekanbaru City Governement who provided insight

and expertise that greatly assisted the research, al-

though they may not agree with all of the interpre-

tations/conclusions of this paper.

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