RESUME : ANALYSIS OF CUSTOMER LOYALTY TOWARD

MESRAN BRAND IN JAKARTA

1. Background of The Research

• Consumer’s loyalty becomes the key success for companies to continue growing and to
get profit. The changing situation pursues marketers to manage and maintain customer
loyalty better.
• The customer loyalty is also important for the company like Pertamina. More than 200
brands of oil has flooded the domestic market of Indonesia. All brand offers advantages
and certain specification. Although Mesran has the highest market share in Indonesia, but
other brands challenges this leading position. Therefore, the effort to keep the customer
loyalty becomes important for Mesran.
• This research explores the customer loyalty. It focuses on combination between attitudinal
and behavioral antecedent of loyalty in exploring the customer loyalty of Mesran Oil
brand. This research explores the effect of attitudinal loyalty to behavioral loyalty
2. Problem Formulation
Is there significant effect of loyalty in each phases of attitudinal loyalty on behavioral
loyalty?
3. Observed Variables
• Cognitive Loyalty
• Affective Loyalty
• Conative Loyalty
• Behavioral Loyalty
4. Research Instrument : Questionnaire consisted of information about all elements of
customer loyalty (cognitive loyalty, affective loyalty, conative loyalty and behavioral loyalty)
and information about respondents’ demographic characteristic.
5. Sampling : This research distributed one hundred questionnaires to respondents using non-
probability sampling as the basis of representation. there were 13 questionnaires (13%) not
used in the analysis.

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6. Data Quality showed that response rate is 87% and z test showed that the cognitive, affective,
conative and behavioral loyalty data was normally distributed.
7. Validity and Reliability test showed that only 1 item in conative loyalty was invalid and not
used in the next analysis. The Cronbach Alpha showed a reliable result.
8. Data Technique
• Correlation
• Multiple Regression
Y = a + b1X1 + b2X2 + b3X3 + E

Where:

Y = behavioral loyalty (dependent variable)

X1 = cognitive loyalty (independent variable)

X2 = affective loyalty (independent variable)

X3 = conative loyalty (independent variable)

9. Result
a. Correlation
• the coefficient correlation of cognitive loyalty and affective loyalty is 0.827. It
means that the relationship between affective loyalty and cognitive loyalty is very
strong.
• the coefficient correlation of conative loyalty and affective loyalty is 0.561. It
means that the relationship between affective loyalty and conative loyalty is moderate.
• Based on the correlation test, the coefficient correlation of conative loyalty and
behavioral loyalty is 0.712. It means that the relationship between behavioral loyalty
and conative loyalty is strong.
b. Regression
• The linear regression gave the better result or could predict better than non linear
regression. Therefore, it used linear regression in the next analysis.
• The regression equation is as follows.
Y = -0.050 + 0.211X1 + 0.185X2 + 0.595X3 + e
• the value of all VIF are less than 10, so there is no multicollinearity problem
occurred in the regression result.
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• the significant level of all variables correlated to residual exceed 0,05 or 5%

significant level. It means that there is no heteroscedasticity problem occurred in the
regression result.
• Since the computed Durbin Watson of 1.841 lies between dU ≤ d ≤ 4-dU or 1.721
≤ d ≤ 2.279, the hypothesis that there is no positive or negative autocorrelation not
rejected.
• T-test showed that cognitive loyalty, affective loyalty, conative loyalty individually
influence the behavioral loyalty. It’s because the value of t in the three variables are
higher than t-table in 5% significance level.
• F-test showed that cognitive loyalty, affective loyalty, conative loyalty
simultaneously influence the behavioral loyalty. It’s because the value of F was higher
than F-table in 5% significance level.
• The value of R2 was 0.582 showing that the three independent variables could
explain 58.2 percent variation in dependent variable.
10. Conclusion
• The general conclusion of this research is that There were positive and significant effect of

cognitive, affective and conative loyalty partially or simultaneously on behavioral loyalty.

Informational determinants or brand beliefs are processed to be a behavioral loyalty and

there was relationship of cognitive loyalty to behavioral loyalty. The evaluation of the

product conducted by customer could make customer likes or dislikes the product or

service and it can create a behavioral loyalty because the liking and enjoyment of product

experience can maintain behavioral loyalty. The strong intentions to repurchase sustained

by the strong motivation could also created the behavioral loyalty.

• The effect of conative loyalty on behavioral loyalty is the highest (0.595) compared to the

effect of cognitive loyalty (0.211) or affective loyalty (0.185) on behavioral loyalty.

There’s a tendency that customers with high intention to buy will buy the product. There’s

also ambiguity in information. Information obtained from other brands will delude
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cognitive and affective loyalty, so they would not be able to create action to buy the

product.

• Although the cognitive, affective and conative loyalty had effect to behavioral loyalty,

there are also other variables affected the behavioral loyalty. Although Mesran is the

established brand in oil industry in Indonesia, but there’s possibility to be threatened by

another brand. The information contents (cognitive loyalty) and perceived superiority

(affective loyalty) could be the source of entry to threaten Mesran. There’s also possibility

in the perception of customer to perceive that all product of automotive oil are similar.

11. Limitations of the Study

This research is only eligible for the sample in the service station in Jakarta area only and also

limited to customer loyalty consisting of cognitive, affective, conative and behavioral loyalty.

It results in low predictability level. The suggestion for further research are as follows:

• Sample size and location of research must be extended to include more samples and more

locations.

• This research can also be extended to include other factor influencing the level of

behavioral loyalty.

5.1 Managerial Implications

• The increase of benefit and quality of product delivered to customers becomes the key

factor in increasing the cognitive loyalty. It will create the good perception and belief.

• By increasing the satisfastion and persuasion, the affective loyalty can be increased. The

persuasion method through advertisement, sales promotion and free sample or discount to

the product can attrac customers to buy the product.

• Company needs to increase the intention to buy by delivering incentive to customer to try

and experience the product.