Analysis of Customer Satisfaction Level of Small and Medium Micro

Enterprises (SMEs) using Importance Performance Analysis (IPA)

Method and SWOT Analysis at PT Perusahaan Gas Negara Sales

Area Batam

Thifany Ruth Simatupang

, Nur Rahmah Andayani and Fandy Bestario Harlan

Applied Business Administration, Politeknik Negeri Batam, Jl. Ahmad Yani, Batam Centre 29461, Indonesia

Keywords: Customer Satisfaction, Importance Performance Analysis (IPA) and SWOT Analysis.

Abstract: This research aims to determine the level of SMEs customer satisfaction and identify the best strategies in

increase customer satisfaction at PT Perusahaan Gas Negara Sales Area Batam. The research uses field

research type with qualitative descriptive type approach. The analytical methods used: Importance

Performance Analysis (IPA) and SWOT Analysis. The sample in the study was as many as 62 sources who

based from MSME customers and 2 Sources from sr. of the Analysis Industry and Batam Commercial Sales

Area. The results of this study explained that customer satisfaction is 95%. There are 3 attributes that need to

be improving, i.s: first, Gas usage facilities meet eligibility attributes. Second, PGN provides consultation on

the use of natural gas clear and Directional. Third, PGN is quick in answering any information that customers

need. According to the SWOT analysis, the company has a strong position in the industry so it can maintain

its aggressive business strategy.

1 INTRODUCTION

1.1 Background

The growth of the small and medium micro

enterprises (SMEs) sector during the Covid-19

pandemic is currently the top priority that must be

done in maintaining economic balance in Batam. This

is because the existence of SMEs has a large

contribution as a contributor to gross domestic

product (GDP) that can open more job opportunities

for people affected by the pandemic.

Based on data from the Ministry of Small and

Medium Enterprises Cooperatives Batam is also one

of the largest contributory cities of SMEs business

activities in Indonesia, Batam city has 12,859 MSME

sectors that are officially registered and eligible to

receive direct assistance from the government

(Batampos.co.id, 2020).

PT Perusahaan Gas Negara Sales Area Batam

(PGN), is a company engaged in providing clean

natural gas and economic connection distribution

services that has an economic improvement program

https://orcid.org/0000-0001-9817-5500

of SMEs activities with the motivation of creating

new jobs for the people in Batam City (ir.pgn.co.id,

2019).

Therefore, PT Perusahaan Gas Negara (PGN)

Batam Area continuously makes improvements and

improvements to the products and services they offer

to SMEs customers in Batam as a form of concern and

commitment given by the government to the

community, especially small businesses such as

SMEs. Based on this, measurement of MSME

customer satisfaction level needs to be done to

support the company.

This research uses Importance Performance

Analysis (IPA) method where this method aims to

find out the factors that greatly affect the level of

customer satisfaction and what factors need to be

improved, for the performance that has been received

and the expectations that exist in SMEs customers in

PT Perusahaan Gas Negara Sales Area Batam.

Furthermore, in improving customer satisfaction

SWOT analysis (Strength, Weakness, Opportunities,

and Threat) in this study was conducted with the aim

to describe the conditions faced by the company

Simatupang, T., Rahmah Andayani, N. and Bestario Harlan, F.

Analysis of Customer Satisfaction Level of Small and Medium Micro Enterprises (SMEs) using Importance Performance Analysis (IPA) Method and SWOT Analysis at PT Perusahaan Gas

Negara Sales Area Batam.

DOI: 10.5220/0010888900003255

In Proceedings of the 3rd International Conference on Applied Economics and Social Science (ICAESS 2021), pages 289-297

ISBN: 978-989-758-605-7

289

related to internal and external factors when

delivering natural gas to SMEs customers. Internal

factors component in the form of weaknesses and

strengths of the company and external factors identify

opportunities and threats.

Therefore, this research is used to measure the

level of customer satisfaction of natural gas through

the use of Importance Performance Analysis (IPA)

method and SWOT analysis with the approach of

analysis of SMEs customer satisfaction strategy

through observation and dissemination of

questionnaires to decision makers. PT Perusahaan

Gas Negara Sales Area Batam.

2 REVIEW OF LITERATURE

2.1 Empirical Study

The previous research in this study is by: Rival

Fahrial (2019) with the research title " Surabaya-

Lombok Crossing Ship Service Performance Review

with IPA and SWOT Methods ". The results of this

study indicate that the Service on board does not yet

have maximum performance results and the strategy

that can be used is to equip the ship's facilities.

Mukti Ali (2019) with the research title" SWOT

analysis in formulating marketing strategies at Grand

celino hotel in Makassar ". The results of this study

are: The hotel must make efforts to improve the

quality of products, services, and product distribution.

Diaz Muhammad Juniawan, Ahmad Wicaksono,

& Rahayu Kusumaningrum (2018) with the research

title " Study of Land Side Service Performance of

Banyuwangi Airport With IPA and SWOT Methods

". From the results of this study, the level of service

performance based on customer interests is in the

category of quite satisfied or good enough.

Rido Insan Raharjo (2018) with the research title

" Marketing Strategy Through Strength Weakness

Opportunity Threat (SWOT) Analysis on Futsal Field

Rental Business in Banyuwang Futsal Scudetto " the

results of this study concluded that the Internal

environmental analysis has the power in dealing with

threats such as competitors and development

strategies that can be done is to promote and provide

safe facilities.

Hayu Kartika (2015) with the research title "

Analysis of Service Quality and Customer

Satisfaction on Household natural gas networks " "

the results of this study concluded that the The level

of natural gas customer satisfaction is still low and

has not been in line with customer expectations so it

was concluded that the customer was not satisfied.

2.2 Theoretical Review

2.2.1 Definition of Quality Service

According to Tjiptono (2011), quality is the value of

good or bad products and services that have been

received based on perceptions about the expectations

of the recipient. According to Fandy Tjiptono (2015),

there are 5 indicators that affect the quality of service

provided to consumers, including the following:

a. Tangibles

Physical evidence indicators contained in the

quality of service include a real view of the

company’s physical facilities and infrastructure

and the surrounding environment situation.

b. Reliability

Reliability indicators are the expertise of a

company to provide services as promised

accurately and reliably.

c. Responsiveness

Response indicator is the company’s ability

tohelp and provide fast and appropriate service

d. Assurance (guarantee and certainly)

The assurace indicator aims to grow customer’s

trust in the product or service on time

e. Empathy (level of concern)

The indicator of concern is done by giving

sincere attention by understanding the

customer's wishes based on the characteristics

of each customer.

2.2.2 Definition of Service

According to Kotler (2002), the definition of service

is an act or act from one party to another that is

intangible and cannot transfer ownership related to

physical products or not.

2.2.3 Definition of Customer Loyalty

According to Tjiptono (2011), the understanding of

customer satisfaction leads to a relatively long and

continuous growth in sales growth with the aim of

increasing purchases by returning customers.

2.3 Conceptual Framework

The thought frameworks is described in the following

figure:

ICAESS 2021 - The International Conference on Applied Economics and Social Science

290

Figure 1: Conceptual Framework.

3 METHOD OF RESEARCH

3.1 Research Design

This research uses field research type with qualitative

descriptive type approach. According to Sugiyono

(2018), descriptive research is used to describe the

analysis of data that has been obtained without

intending to make conclusions that apply to the public

and the findings are not obtained using processed

statistics. While qualitative method according to

Sugiyono (2018), is research based on the philosophy

of postpositivism where the object of research is a key

instrument of data analysis conducted

3.2 Research Subject

This study used non probability sampling technique

to determine respondents in Importance Performance

Analysis (IPA) method. According to Sugiyono

(2017:125), non probability sampling technique is a

technique that does not provide equal opportunities or

opportunities in each section to be selected to be

sources. Furthermore, saturated sampling is

performed to determine the sample to be given a

questionnaire.

Saturated sampling technique according to

Sugiyono (2016:85), is a sample whose population is

considered small or less than 100 so that the entire

sample represents the number of populations. While

the resource persons needed in the analysis of SWOT

method are speakers of SOE employees who have

worked for more than 5 years at PT Perusahaan Gas

Negara Sales Area Batam.

The subjects of this study are:

a. SMEs (Small Customer Category) customers

amounted to 62 customers.

b. Sr. Analyst, Industry and Commercial Sales Area

Batam amounted to 2 sources.

3.3 Data Collection Techniques

Here are the methods of data collection in this study:

a. Questionnaire: Questionnaire is a written

question to collect data from sources

b. Interview (In-Depth Interview): the process of

extracting information in depth and through

direct questions

c. Observation: Direct observation of the life of

objects used in research

d. Documentation: Evidence of data in the form of

images, citations related to research

According to Sugiyono (2017:93), the Likert scale

is a measurement level for assessing a person's

attitudes, opinions, and perceptions about social

phenomenal people to levels from very positive or

very good to very negative or bad. As for each

instrument the questions or statements in the

questionnaire were given the following values:

Table 1: Likert Scale.

Criteria

Score

Strongly Agree

Agree

Disagree

Strongly Disagree

3.4 Validity and Reliability

3.4.1 Validity Test

According to Sugiyono (2018), Validity test is a tool

to measure the accuracy of actual data on data

research objects used by researchers. validity test

provisions that if r calculates > r table with a

confidence level of 95% then the instrument can be

declared valid and vice versa, if r calculates < r table

with a confidence level of 95% then the instrument is

declared invalid.

Then the significance value is compared to Alpha

Cronbach (0.05), if the significance value is less than

0.05 then the indicator/statement item is declared

valid (Ghozali, 2018:52).

Reliability Test

Reliability test in the study aims to explain the

instruments used can measure consistently over time

(Sugiyono, 2018). A reliable or non-reliable variable

can be determined if the Value of Cronbach Alpha >

0.60 then the variable item is considered reliable and

vice versa if the Value of Cronbach Alpha < 0.60 then

the variable item is considered unreliable (Ghozali,

2018:48).

PT.

Perusahaan

Gas Negara

Sales Area

Batam

Analysis of

Customer

Satisfaction

Importance

Performance

Analysis

(IPA)

Analysis

SWOT

SMEs

Customer

Satisfaction

Analysis of Customer Satisfaction Level of Small and Medium Micro Enterprises (SMEs) using Importance Performance Analysis (IPA)

Method and SWOT Analysis at PT Perusahaan Gas Negara Sales Area Batam

291

3.5 Importance Performance Analysis

(IPA)

In the research Simajuntak &Purwasih (2017)

Importance Performance Analysis (IPA) method is a

method that measures the framework to achieve

customer satisfaction as the purpose of the company's

performance (performance) judging by the related

attributes and expectations (importance) related to an

attribute.

Quadrant Diagram Formula :

Average performance score and expectation score:

𝑋



∑







and 𝑌



∑







(1)

Where:

X = Average performance level score

Y = Average score of interest

n = Number of respondents

Calculates the total average value:

𝑋



∑













and 𝑌



∑













(2)

Where:

X = Weight of the average rating level of the i

performing attribute

Y = Average value of the importance attribute

valuation level i

n = Number of attributes

Table 2: Customer Satisfaction Criteria at PT Perusahaan

Gas Negara Sales Area Batam.

Satisfaction

Value

Interval Value Category

1 0% - 44,99% Very dissatisfied

2 45% - 65,99% Dissatisfied

3 66% - 80,99% Satisfied

4 81% - 100% Very satisfied

3.6 SWOT Analysis

According to Rangkuti (2008), SWOT Analysis

consists of Strengths, Weaknesses, Opportunities and

Threats faced by a company. The following stages of

strategy formulation in the SWOT matrix are as

follows:

1. Determine the list of internal strengths and

weaknesses that exist in PT Perusahaan Gas

Negara Sales Area Batam.

2. Determine the list of external opportunities and

threats available to PT Perusahaan Gas Negara

Sales Area Batam.

3. Determining the Internal Matriks of Factor

Analysis Summary (IFAS)

a. Internal and External weights between 0.0

and 1.0 (The overall value of the weight is

1.00)

b. Rating from Internal between 1 to 4 and

External -1 to -4

c. Value Score is the result of multiplication

between weight value and rating value

Table 3: IFAS (Internal Factors Analysis Summary).

Internal Factors Weighting Rating Score

Srenght (S)

Subtotal

Weakness (W)

Subtotal

Total 1,00

4. Determining the External Matriks of Factor

Analysis Summary (EFAS)

a. Internal and External weights between 0.0

and 1.0 (The overall value of the weight is

1.00)

b. Rating from Internal between 1 to 4 and

External -1 to -4

c. Score Value is the result of multiplication

between weight value and rating value.

Table 4: EFAS (Eksternal Factors Analysis Summary).

Eksternal Factors Weighting Rating Score

Opportunities O)

Subtotal

Threats (T)

Subtotal

Total 1,00

5. The last stage is the SWOT matrix

4 RESULT AND DISCUSSION

4.1 Validity Test

Based on performance validity test results and

expectations, tested with SPSS version 22. Have

decision-making criteria to determine whether or not

the attributes in the questionnaire where if the

calculated r value is greater than or equal to table r

(N=62 of 0.2461) is seen in the statistics book table r

and the value of significance is less than the level of

significance 5%. This can be said if all statements in

ICAESS 2021 - The International Conference on Applied Economics and Social Science

292

the questionnaire are valid and eligible for use as

measuring instruments.

4.2 Reliability Test

Based on the performance reliability test and

customer expectations of SMEs in Table 5, it is

generated that all statement items/indicators have An

Alpha Cronbach value greater than 0.60 so that all

statement items/indicators are reliable. Reliability test

results are presented as follows:

Table 5: Reliability Test Results.

Indicator

Performance Expectations

Decision

Alpha

Cronbach

Value

Standard

Alpha

Cronbach

Value

Standard

Tangible 0,773 0,60 0,796 0,60 Reliable

Reliability 0,801 0,60 0,781 0,60 Reliable

Responsiveness 0,751 0,60 0,787 0,60 Reliable

Assurance 0,782 0,60 0,802 0,60 Reliable

Empathy 0,764 0,60 0,781 0,60 Reliable

4.3 Characteristics of Respondents

Table 6: Summary of Questionnaire Result Data.

Characteristics Information F %

Age 31-35 Years 25 40%

Gender Male 36 58%

Education D-IV/S1 33 53%

Old Subscription >5 Years 33 53%

Type Business Catering 27 44%

Based on the results of the questionnaire obtained the

majority of customers who use natural gas are

customers aged 31-35 years as many as 25 customers

with a percentage of 40%, female customers as many

as 36 customers with a percentage of 58%, customers

with education D-IV / S1 as many as 33 customers

with a percentage of 53%, customers with a

subscription duration of >5 Years as many as 33

customers with a percentage of 53%, customers with

culinary / catering business types as many as 27

customers with a percentage of 44%.

4.4 Descriptive Statistical Result

Based on the results processed SMEs customer data

is known that the highest mean value obtained by the

indicator Of Concern (Empathy) is 16.98 which is

considered to have a service performance in

accordance with customer expectations. While the

lowest mean value obtained by Physical Proof

(Tangible) of 15.98 which is considered still needs to

be increased to achieve customer expectations. This

is in accordance with the results of research obtained

by Kartika (2015), which in this study obtained that

the highest mean value needs to be maintained. While

the lowest mean value needs improvement and should

be scaled back. The results of customer data

recapitulation are presented as follows:

Table 7. Descriptive Statistics

Descriptive Statistics

N Min Max Mean Std. Dev

Tangible 62 8.00 20.00 15.9839 2.65806

Reliability 62 7.00 20.00 16.5000 2.91829

Responsiveness 62 8.00 19.00 16.0645 2.18693

Assurance 62 9.00 20.00 16.8710 2.32931

Empathy 62 10.00 20.00 16.9839 2.09990

4.5 Calculation Result of Importance

Performance Analysis (IPA)

Based on the results of the calculation using the

Importance Performance Analysis (IPA) method in

the table 8, the total performance level is 5105 out of

25 question attributes and the total expectation is

5360 out of 25 question attributes. The result of total

performance and expectations is 95% which is in the

excellent category.

4.6 Cartesius Diagram

Once the position of each attribute is determined, it is

possible to know what priorities need to be improved

and what needs to be improved. The measurement

results can also be used in determining which

attributes should be maintained so as not to degrade

the quality of service that has been provided to

customers.

This is in line with research conducted by Kartika

(2017), which stated that data processed results using

IPA method can show the priority of improving

service quality based on the value of expectation level

and performance level through cartesian diagrams.

The results of the study are interpreted in cartesian

diagrams divided into 4 (four) quadrants. Based on

these 4 quadrants there are 1 (one) quadrant that is the

top priority because it is considered important to be

corrected which is in quadrant I (First). Attributes that

are

in this quadrant have results where the quality of

Analysis of Customer Satisfaction Level of Small and Medium Micro Enterprises (SMEs) using Importance Performance Analysis (IPA)

Method and SWOT Analysis at PT Perusahaan Gas Negara Sales Area Batam

293

Table 8: Calculation result of Importance Performance

Analysis (IPA).

Attribute (Xi) (Yi)

(Tki)

(100%)

Service Quality

Performance

A1 201 214 94% Excellent

A2 208 221 94% Excellent

A3 199 216 92% Excellent

A4 190 207 92% Excellent

A5 189 214 88% Excellent

A6 214 223 96% Excellent

A7 196 209 94% Excellent

A8 208 219 95% Excellent

A9 201 209 96% Excellent

A10 204 212 96% Excellent

A11 203 209 97% Excellent

A12 199 214 93% Excellent

A13 191 218 88% Excellent

A14 202 212 95% Excellent

A15 201 215 93% Excellent

A16 208 215 97% Excellent

A17 213 215 99% Excellent

A18 206 214 96% Excellent

A19 207 210 99% Excellent

A20 212 217 98% Excellent

A21 203 208 98% Excellent

A22 216 226 96% Excellent

A23 207 208 99% Excellent

A24 215 219 98% Excellent

A25 212 216 98% Excellent

Score 5105 5360 95% Excellent

service provided is less than satisfactory to customers

or the performance provided is far from customer

expectations.

This is in line with research conducted by

Nurhayati, et al (2007), which states that a high level

of importance explains that customers also have high

expectations. The attributes stated in quadrant 1 are

A3 which is a gas usage facility meets the feasibility,

attribute A13 namely PGN provides consultation on

the use of gas clearly and directed and attribute A15

namely PGN quickly answer any information needed

by customers

4.7 SWOT Analysis

4.7.1 Internal Factors

Strengths

a. PGN is one of the largest business entities that

distributes natural gas to various customer

segments including SMEs.

b. PGN natural gas quality is safer than other fuels,

because it is lighter than air

c. PGN has many awards for the best service

d. Determination of gas price policy in Batam city

is much cheaper

e. Surcharge-free policy on SMEs customers

Weaknesses

a. Availability of gas infrastructure, especially for

the needs of commercial customers has not been

evenly distributed in all areas in Batam

b. The introduction of natural gas by SMEs

customers is still not optimal

c. The initial investment cost of gas pipeline

installation to SMEs customers (sector

regulators)

d. Lack of socialization from PGN for customers

4.7.2 External Factors

Opportunities

SMEs customer demand for high availability of

natural gas

b. Government support in channeling natural gas in

supporting the sustainability of SMEs in Batam

(SYNERGY OF SMEs)

c. The economic situation in Batam tends to be

stable

d. The growth of SMEs in Batam is very rapid

e. Abundant natural gas reserves

Threats

a. Third parties doing work on gas pipelines may

result in gas pipeline leaks

b. Knowledge of prospective SMEs customers on

natural gas is still low

c. Interference from gas sources or compressors

resulting in a decrease in supply.

d. Licensing of pipeline distribution through

facilities owned or controlled by the community.

4.8 SWOT Diagram

Based on the SWOT analysis diagram it is known that

the company is in the position of quadrant I which is

supporting aggressive strategies that have the same

position of opportunity and strength and make the

company in a strong competitive position. Swot chart

results are presented as follows:

ICAESS 2021 - The International Conference on Applied Economics and Social Science

294

Table 9: SWOT Diagram.

Based on the results of the total average IFAS of

2.68.

Table 9: Based on the results of the total average

IFAS of 2.68.

No Company Strategic Factors Score

1 Strengths Factors 2.99

2 Weaknesses Factors -0.31

Total 2.68

Table 10: the EFAS matrix obtained a total average

of 2.07.

No Company Strategic Factors Score

1 Opportunities Factors 2.58

2 Threats Factors -0.51

Total 2.07

Based on the results of the value gives the

conclusion that placing PT Perusahaan Gas Negara

Sales Area Batam in the position of Cell V namely

Hold and Maintain, this is known through the IE

Matrix. This is in line with research conducted by

Kuncoro (2010), which also obtained the same

results, namely the strategy of maintaining and

maintaining, it is a situation where the company is

experiencing a good growth period and can be

managed with a market penetration strategy and

product type development.

4.9 SWOT Matriks

1. Strategy (SO)

a. Penetration of SMEs customers through

direct or non-direct pipeline connections

b. Determination of efficiency of natural gas

prices that are economical and practical and

subsidy-free to SMEs customers

c. Development of creative and independent

economic programs to SMEs in Batam

through the synergy of companies and

governments

d. Developing gas innovation through

technology as a solution to develop quality

of service and business development

2. Strategy (ST)

a. Supervise and coordinate to third parties and

PU (Public Works) thoroughly on activities

outside the company that is in the pipeline.

b. Education on the introduction and

management of leaks to customers and

improving the company's emergency

response system

c. PGN develops 360 Degree Integrated

Solution service in optimizing customer

service.

d. Publish news of third-party job inspection

events in the pipeline

3. Strategy (WO)

a. Development of natural gas infrastructure

and increasing the use of cradles to supply

gas to areas that have not yet integrated gas

pipelines

b. Provide socialization and education on the

proper use of PGN natural gas in a directed

manner to obtain a safe and economical

energy source

c. Looking for alternatives that can lower the

cost of initial investment so as not to burden

prospective SMEs customers

4. Strategy (WT)

a. Supervise the work of third parties located in

pgn gas infrastructure

b. Introducing clearly and directed about the

use of natural gas through socialization to

SMEs customers

c. Requesting local government assistance in

facilitating the permit of gas pipeline

installation projects that pass through

community owned facilities

Here are some alternatives that can be done PT

Perusahaan Gas Negara Sales Area Batam, namely:

1. Market development, as a strategy that can be

done by the company through the expansion of

Analysis of Customer Satisfaction Level of Small and Medium Micro Enterprises (SMEs) using Importance Performance Analysis (IPA)

Method and SWOT Analysis at PT Perusahaan Gas Negara Sales Area Batam

295

new territories to maximize the distribution of

products and services owned by the company.

2. Market penetration, as a strategy that can be

done by companies through infrastructure

development so that gas distribution is more

widespread to every customer group such as

Commercial and Industrial (KI), Small

Customers (PK) and Small and Medium Micro

Enterprises (SMEs) and Households (RT). This

strategy can be done to increase sales and

maintain the strength of the company.

3. Product development, is a strategy carried out

through new innovations in the distribution of

natural gas this can be done by creating products

and optimizing new products such as Gaslink

(Compressed Natural Gas Products), developing

cradle innovations (Compressed natural gas

cylinders) for the distribution of natural gas to

commercial customers and SMEs

4. Forward, backward and Horizontal integration

It is a strategy that can be done by PGN to

strengthen the company's existence as the main

management of every activity from downstream

natural gas to customers by strengthening the

role as Pertamina's gas sub-holding.

5 CONCLUSION

Based on the results of research that has been

conducted using the Importance Performance

Analysis (IPA) method as well as strategies used in

improving the satisfaction of SMEs customers drawn

the following conclusions:

1. The level of customer satisfaction of SMEs based

on the Importance Performance Analysis (IPA)

method at PT Perusahaan Gas Negara Sales Area

Batam is in the category of very satisfied.

2. Service indicators that need to be improved

based on the Method of Importance Performance

Analysis (IPA) at PT Perusahaan Gas Negara

Sales Area Batam is located in Quadrant I (

Decision Priority-A), namely: Attribute 3

namely: Gas usage facilities meet eligibility,

Attribute 13 that is, PGN provides consultation

on the use of Gas clearly and directed, Attribute

15 namely PGN quickly answer any information

needed by customers

3. The best strategies that can be done in supporting

the customer satisfaction of SMEs based on

SWOT analysis at PT Perusahaan Gas Negara

Sales Area Batam are:

a. Penetration of SMEs customers through

direct or non-direct pipeline connections

b. Determination of efficiency of natural gas

prices that are economical and practical and

subsidy-free to SMEs customers

c. Developing gas innovation through

technology as a solution to develop quality

services and business development

d. Looking for alternatives that can lower the

cost of initial investment so as not to burden

prospective SMEs customers

e. Introducing clearly and directed about the

use of natural gas through socialization to

SMEs customers.

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