Binus Business Review

Factors Affecting Customer Loyalty: An Empirical Evidence from the Toll Road Industry in Indonesia

Denny Chandra Irawan — 2024-02-02

Toll road rest areas are one of the main pillars of the toll road industry, and higher interest in buying at toll road rest areas is one of the keys to their financial success. The research aimed to identify and analyze the relationship between revisit intention and customer loyalty, as well as perceived price fairness, perceived satisfaction, and service quality. These variables were believed to be the main drivers for toll road users to make purchases at toll road rest areas. A statistical analysis approach was used with the Partial Least Square-Structural Equation Modelling (PLS-SEM) method for 573 respondents. They were consumers of the Trans Java toll road rest area. The survey was conducted directly on customers of the Trans Java toll road rest area at 15 locations. The results show that perceived price justice and satisfaction positively and significantly impact revisit intention. Then, revisit intention has a positive and significant impact on customer loyalty. Service quality has a positive and significant impact on perceived satisfaction and customer loyalty. The findings show that service quality, which is most strongly influenced by assurance, responsiveness, and empathy, is the main factor influencing customer loyalty. Based on the research results, the practical application is how managers can improve service quality, perceived price justice, and perceived satisfaction for price-sensitive consumers, who also tend to be sensitive to the service quality they get.

The Influence of Marketing Strategy on Marketing Performance from a Management Perspective in the Disruption Era

I Gusti Ngurah Satria Wijaya — 2024-02-02

The world continues to develop and change, and everything is digital-based in the current era of disruption. The retail industry is one of the business sectors most severely impacted by the COVID-19 pandemic and the disruption era. Numerous businesses or retail issuers also see a drop in sales and even suffer losses. The research aimed to evaluate the most successful marketing tactics toward marketing performance in the disruption era from a management perspective. The major data used came from questionnaires given to management with digitized or digital marketing. A total of 282 data were collected using the purposive sampling technique to determine the respondents in Denpasar City. Structural Equation Model (SEM) analysis was employed in this investigation. The research outcomes are strategies that effectively influence marketing performance in the disruption era, including marketing mix strategy, online affiliate marketing strategy, and social media strategy. The marketing mix strategy cannot be abandoned despite changes in the disruption era. There can only be a change in strategy using digital marketing media. The research novelty lies in its findings, which support the Resource-Based View (RBV) theory, the marketing tactic employed to enhance marketing effectiveness in the disruption era. The practical implications include policy recommendations for business management and marketing methods to improve marketing performance in the disruption era.

The Influence of Environmental, Social, and Governance (ESG) Disclosure on Firm Value: An Asymmetric Information Perspective in Indonesian Listed Companies

Putri Angir — 2024-02-07

The research explored how Environmental, Social, and Governance (ESG) disclosure impacted company value, with information asymmetry as the mediator. Data collection involved content analysis of sustainability and annual reports, supplemented by market data, including quarterly stock prices collected immediately after the publication of the sustainability report. The measurement for ESG disclosure used the index scoring method with disclosure indicators based on technical guidelines from SEOJK No. 16 of 2021. Meanwhile, measuring information asymmetry applied the bid-ask spread formula, and company value employed the approximate Tobin's Q formula. Then, market data utilized quarterly stock prices taken in the period immediately after the sustainability report was published to observe market reactions reflected in stock price movements. The population consisted of public companies listed on the Indonesian Stock Exchange from 2019 to 2021, with purposive sampling by selecting only companies that provided information relevant to ESG indicators. Data collection resulted in 286 analysis units from 109 companies. Using SPSS 27.0 and the Hayes Macro process for path analysis, the findings indicate that ESG disclosure has no impact on information asymmetry. Similarly, information asymmetry does not affect firm value or mediate the relationship between ESG disclosure and firm value. However, it should be noted that ESG disclosure has a negative impact on company value. The novelty of the research lies in the use of instruments to assess the quality of ESG disclosure and the utilization of information asymmetry as a mediator between ESG disclosure and company value.

Social Media Influencer: The Influence of Followers’ Purchase Intention through Online Engagement and Attitude

Giovanni Imanuel Dauhan — 2024-02-16

Marketing collaboration with social media influencers is rapidly developing into a promotional strategy. It is considered the most effective for marketers worldwide, including in Indonesia. Although effective, marketers face challenges in selecting the right Social Media Influencer (SMI) according to the company’s brand due to the high growth in the number of SMIs. The research aimed to examine the relationship between the influence of SMI credibility based on the source credibility model and the advertising value of SMI content on attitude toward SMI and online engagement. Then, it led to purchase intention as a determinant of the success of product/brand promotion activities. The research used the Stimulus-Organism-Responses (SOR) framework. The number of samples used was 261 social media users who followed at least one SMI and were domiciled in several regions of Indonesia. Partial Least Square Structural Equation Model (PLS-SEM) was used as a data analysis method, with software analysis tools of Smart PLS Ver.3.2. The results show that SMI’s credibility based on the source credibility model and content value based on advertising value act as a stimulus. They have a significant and positive effect on followers’ attitude and online engagement. They also subsequently influence purchase intention. Both attitude toward SMI and online engagement mediates the relationship between source credibility and the advertising value of content on purchase intention. These findings can help marketers’ strategies in determining the right SMI to use.

Respond, Recovery, and Renew Strategies in Strengthening Competitiveness of Cooperatives After COVID-19 Pandemic in West Java

Risris Rismayani — 2024-02-16

The recent economic slump due to the COVID-19 pandemic causes major problems for cooperatives in West Java in maintaining their business activities. The pandemic significantly impacts the cooperatives and Small and Medium Enterprises (SMEs). Thus, developing strategies for cooperatives to recover, respond, and renew the issue becomes increasingly necessary. The research sought to contribute by developing alternative strategy recommendations for cooperatives in West Java, Indonesia. By doing so, it generated a competitive advantage in the post-pandemic industry. The research data were obtained through two main sources. Primary data came from Focus Group Discussion (FGD) activities involving cooperative stakeholders in West Java, consisting of cooperative managers, academicians, media, and government. Secondary data were taken from previous research. The collected data were analyzed using the Strength, Weakness, Opportunity, and Threat (SWOT analysis) approach to produce strategic recommendations visualized on the SWOT Matrix and categorized into Respond, Recovery, and Renew strategies. The results show five strategy alternatives to exploit opportunities with the cooperatives’ strengths (SO strategy). Seven strategy alternatives were identified to overcome the cooperatives’ weakness with external opportunities (WT). There are six strategy alternatives to anticipate external threats using cooperatives’ strengths (ST). Last, seven strategy alternatives are found to overcome both cooperatives’ weaknesses and external threats.

Jakarta’s Generation Z and Local Fashion Industry: Unveiling the Impact of Brand Image, Perceived Quality, and Country of Origin

Pantri Heriyati — 2024-02-20

The local fashion industry in Indonesia faces tough competition with imported brands, driven by shifting consumer preferences, particularly during the pandemic. The research examined the impact of country of origin on purchase intention in the casual fashion industry, with brand image and perceived quality as intervening factors. It involved 412 Indonesian Gen Z in Jakarta as respondents with prior experience in the local casual fashion market. Data were collected through online questionnaires, and the SEM-PLS analysis method with SmartPLS v3.2.9 software was used for analysis. Results show that country of origin significantly influences brand image and perceived quality, affecting purchase intention. The research aligns with prior consumer perceptions studies. The implications offer guidance for casual fashion industry marketers and retailers. Emphasizing a positive country of origin image and focusing on brand image and perceived quality can impact purchase decisions, particularly among Indonesian Gen Z consumers in Jakarta. Future research can also expand the scope to include a broader sample and employ qualitative methods for deeper consumer insights. In conclusion, the research enhances understanding of consumer behavior in the casual fashion industry by revealing the role of country of origin, brand image, and perceived quality in shaping purchase intentions. Businesses can utilize these insights to refine their marketing strategies and better cater to their target consumers’ preferences.

Customers’ Purchase Intentions on Herbal Products and Supplements During the COVID-19 Pandemic

Syafrizal Syafrizal — 2024-02-26

The research aimed to extend the Theory of Planned Behavior (TPB) by including health consciousness and health value as predictors of purchase intention on herbal products and supplements. The research applied quantitative hypothesis testing. Then, the convenience sampling technique was used in collecting research data. The survey was conducted on 260 herbal and supplement customers in West Sumatra. The research instrument was adapted from previous studies. Then, the research data were analyzed using Structural Equation Modelling (SEM) techniques with the software SmartPLS 3.0. The testing of extended TPB in the research finds that health consciousness and health value have a positive and significant effect on customers’ attitudes and purchase intentions. Among the three main predictors of purchase intention in TPB (customer attitude, subjective norm, and behavioral control), only control behavior positively and significantly affects purchase intention. This extended TPB contributes to the theory of purchase intention by including health consciousness and health value as new predictors in customers’ purchase intentions, especially for herbal products and supplements. The research implications are that marketers and other stakeholders need to carry out effective marketing communications about products and events that support the development of healthy patterns and lifestyles and spend some effort to facilitate consumers' access to herbal products and supplements.

The Risk Assessment and Human Risk Control in Indonesian Power Plant

Jihan Nada Farera — 2024-02-27

Efforts to enhance labor productivity are intrinsically linked to the improvement of Occupational Health and Safety (OHS) standards. The research focused on the optimization of OHS by conducting a COVID-19 risk assessment, with the goal of identifying and implementing Human Resource (HR) risk control measures to augment employee performance. In employing a qualitative methodology, the data were amassed through a combination of interviews, observations, and document analysis involving a diverse group of 23 respondents from various departments. The risk assessment process was meticulously structured into four phases: identification of causes, implementation of preventive measures, development of recovery strategies, and evaluation of consequences. The researchers organized the data into primary and secondary categories for analysis and utilized the Bow Tie method to elucidate the findings. The analysis reveals that the human factor, specifically employees’ non-compliance with safety protocols, poses the greatest risk for virus transmission. The result identifies the warehouse, workshop, administration building, and Coal Handling Control Building (CHCB) as the most critical areas requiring stringent risk controls. The results also provide an overview in preparing the basis for Corrective Action and Preventive Action (CAPA). It provides benefits for implementing OHS in power plant companies through recommendations such as evaluation, preventive action, and risk control through COVID-19 risk assessment. Finally, the research delineates strategies for managing risks through preventive measures and recovery processes to mitigate the impacts and consequences associated with these hazards.

Editorial Page and Table of Content

Haryadi Sarjono — 2024-02-02