Download EFFECT PERCIEVED VALUE ON TRUST AND BRAND LOYALTY: PERSONALITY AS MODERATION VARIABLES

EFFECT PERCIEVED VALUE ON TRUST AND BRAND LOYALTY:
PERSONALITY AS MODERATION VARIABLES
Suliyanto
Puposes of this study were to analyze the influence of percieve value on
trust, percieve value and trust on brand loyalty as well as to analyze
personality as moderation variable between percieve value and trust on
brand loyalty. To test the empirical models, Cho-test sub-group
moderation variable was used. Sample size of this research were 138
facebook user in Jenderal Soedirman University. The results showed
that percieve value have positive effect on trust, percieve value and
trust have positive effect on brand loyalty, and personality are not
moderated the relationship between perecieve value and trust to brand
loyalty.
Keywords: Percieved value, trust, brand loyalty, and personality.
The importance of brand loyalty has been recognized in marketing literature in three decades
(Howard and Sheth, 1969, p. 232). While Rios and Riquelme, (2008) states that brand equity and
branding is an important topic in the field of marketing. he importance of brands in marketing is also
suggested by Neal and Strauss (2008) which states that the brand is the key assets of a business,
especially in this era of competition hypercompetitive.
On the other hand, the development of information and communication technology has
developed so rapidly. Since the development of Internet in the 1970s (Oetomo et al, 2007), experts and
observers continue to develop the technology until the Internet became popular it is today with the
number of users (Netter) are becoming more and more increasing. Since the era of Web 2.0 is an online
business people have had the opportunity and develop new opportunities in online business to be more
mature and evolving more rapidly. In the emerging field of marketing strategy in developing new
business in cyberspace, the strategy is referred to as viral marketing.
Facebook is one social networking site attracted many Internet users in different countries,
including Indonesia. Until January 2011 the number of members Facebook reaches 600 million users,
or rather 596.3 million members worldwide (SocialBakers, 2011a). Indonesia was ranked the second
largest after the United States is 34.498920 million users (SocialBakers, 2011b). Users are very rapid
progression used by marketers to apply the marketing strategy including branding strategy. However,
little theoretical or empirical studies that attempt to identify the sources of brand equity and the
variables that can influence it used to develop a measurement model of brand equity in the company's
online (Rios & Riquelme, 2008). Besides, research on variables that affect brand loyalty have not
inserted the type of personality, but personality can influence behavior, including attitudes toward the
brand. Based on the above problems which is based on the results of previous research (research gaps)
and the phenomenon of on-line business development it is necessary to study the variables that
influence brand loyalty in the business on-line by placing the type of personality as a moderating
variable.
E-mail: [email protected], Jenderal Soedirman University, Indonesia, HP :+628122726400
II. LITERATURE REVIEW AND DEVELOPMENT HYPOTHESIS
Kotler (2000), describing the value (value) is estimated consumers about product capacity to
satisfy a set of goals. Kotler (2000), also defines value as "total get" divided by "total give". Trust has
been recognized as important factors that influence customer loyalty. Definition of consumer trust by
Rangkuti (2002:13) is "All knowledge of consumers and all conclusions made consumers about the
objects, attributes and benefits. Sheth and Parvatiyar in Matzler (2008) suggests that the concept of
brand trust is based on the idea of a consumer brand relationship which is seen as a substitute for
human contact between companies and customers. Brand trust is one powerful factor that affects
customer loyalty. Trust becomes the most important factor in the relationship between a company and
its customers and the relationship between a brand with customers. The definition of brand trust by
Chauduri and Holbrook (2001) is as "The willingness of the average consumer to RELY on the ability
of the brand to perform its function Stated."
Lau and Lee (1999) suggests that brand trust is the willingness of customers in the face of the
risks associated with the brand purchased, will provide a positive and profitable results. There are three
factors that affect trust in the brand according to Lau and Lee (1999) is the brand itself, the
manufacturer of the brand and consumers. The third factor relates to the three entities that include the
brand relationship with consumers. Customer perceived value is critical of the long-term benefits (Mc
Dougal and Levesque, 2000). In other words, consumer confidence will increase when the perceived
value of customers based on what has been received and experienced by customers based on their
sacrifices too high / customer perceived value (Berry and Yadav, 1996; Ravald and Gronroos, 1996).
Customer Perceived Value plays an important role in building customer confidence. Something similar
was expressed by Sirdeshmukh et al., (2002). Consistency between product attributes and customer
perceived value (the value received by customers) to reduce uncertainty and help build trust in a
reliable form of expectations against the possibility of moving to another company (Carver & Scheier,
1990). Based on the above references, it can be said that the relationship between customer perceived
value to the trust. Based on the above description then the hypothesis can be formulated as follows:
H1: Percieved value has positive effect on trust.
Brand loyalty reflects to customer's level of attachment to a brand (Durianto, Sugiarto, &
Sitinjak, 2001) to perform transactions / purchases back to the product with the same brand. Value and
satisfaction affects loyalty (Alireza, et al, 2011). Consumer perception of value has a positive influence
loyalty (Chahal and Kumari, 2011). Quality of care or service value can be used to predict satisfaction
and loyalty Thuy and Hau, (2010). Quality and value influence satisfaction which in turn affects
loyalty (Li and Patric, 2010). The company's reputation has a direct influence on loyalty to the
company on line, and mediate the relationship between percieve value and quality aspects of loyalty
(Caruana and Ewing, 2010. Based on the description then the hypothesis can be formulated as follows:
H2: Percieved values has positive effect on brand loyalty
According to the theory of Trust Commitment (Morgan and Hunt, 1994), trust is key to
keeping and maintaining long term relationships. Brand trust will lead to brand loyalty or commitment
because trust will strengthen the relationship (Morgan and Hunt 1994). While the commitment is a
desire to always maintain a relationship (Moorman, Zaltman, and Deshpande 1992, p. 316). Morgan
and Hunt (1994) states that the trust will lead to the commitment of business to business relationships,
therefore trus has affect on brand loyalty. Ndubisi (2007) mentions that loyalty can be created and
strengthened by four factors, one of which is customer trust. Dwyer et al (1987) in his research states
that the trust as a major element affecting the desire to establish long term relationships with
companies. Research conducted by Chaudhuri and Holbrook, 2001; Lau and Lee, 1999 found that trust
is an activator that affects brand loyalty in the minds of customers. Ruben et al., (2005) in research
studies on business on line also found that consumer confidence effect on customer loyalty. Reliance
on the website generate loyalty to the website to users in China by Dianne Cyr (2008).
H3: Trust has positive effect on brand loyalty
Personality is a pattern of characteristics and the way a person behaves. Personality is
determined by heredity and development is influenced by the environment (Hilgard, 1972) According
to Young (in Suryabrata, 1998:185) human personality types can be classified into two namely
extrovert and introvert. Extrovert personality types are individuals who have characteristics: sociable,
like parties, have many friends, need others to talk and do not like reading or studying alone. People
who extrovert mainly influenced by the objective world, which is something that exists outside of
himself, drawn out orientation, thoughts, feelings, and actions are determined by the environment both
socially and environmentally non-social environment. That person is positive for society, his heart open
and sociable, relationships with others smoothly. Conversely those who are introverted type of
individual who will have to have the characteristics: does not like to hang out, do not like to party, do
not have many friends, do not need other people to talk and love to read or study alone. Based on
personality traits mentioned above, it can be said that in relation to the intensity and ethics in the use of
social networks of people who have extrovert personality types tend to have orientation to interact, find
entertainment, make friends, find someone else to talk to, so the intensity of the higher use of social
networking, otherwise people tend to be introverts berkeperibadian intensity of use of small social
networks. These personality differences can cause differences in attitudes, including attitudes toward
the brand on-line business. Based on the development of the hypothesis then the hypothesis can be
formulated
as
follows:
H4: Personality moderate the relationship between percieve value, trust on brand loyalty.
Based on the above hypothesis model development the research model can be formulated as
follows:
Figure 1: Empirical Research Model
III. RESEARCH METHODS
The population in this study is the user's social networking site Facebook. The large size of the
sample (sample size) is determined according to Hair et al., (1998) which states that the size of a
representative sample for analysis using Stuctural Equation Modeling (SEM) is the range between 100
to 200. Therefore in this study sample size was set at 138 Facebook users at the Jenderal Soedirman
university, who was taken with accidental sampling method. Testing a model of empirical research
using a chow test regeresi moderation subgroups by using some software SPSS ver. 16.0, and
Microsoft Excel Ver. 2007.
IV. RESULTS AND DISCUSSION
1. Goodness of Fit Model
The first regression equation model of the influence of brand trust on the brand value has R2=0.198
with a F Stat. 33.656 and sig. 0.005 so the first model declared fit. Whereas in the second regression
equation model influence brand value and brand trust to brand loyalty has R2 =0.233 with a value of F
Stat 20.449 and the sig. 0.000 so that the both model declared fit.
2. Hypothesis testing
Based on regression analysis of the first model the influence of brand value to the brand trust obtained
the following results:
Table: 1
Results of First Models Regression Analysis Influence of Brand Value on Value Trust
Coefficients Std. Error Beta t
Sig.
(Constant)
1.420
2.928
.485 .628
Brand Value .577
.099
.445 5.801 .000
Dependent Variable: Brand Trust
Based on the output of the t stat (5.801) is greater than t table (1.978) and sig. (0.000) <alpha (0.05),
then the first hypothesis which states brand value has positive effect on brand trust is accepted.
Table: 1
Results of Second Model Regression Analysis Influence of Brand Value and Brand Trust on Brand
Loyalty
Coefficients Std. Error Beta t
Sig.
(Constant)
2.189
3.373
.649 .517
Brand Value .377
.128
.248 2.948 .004
Brand Trust .372
.099
.317 3.768 .000
Dependent Variable: Brand Loyalty
Based on the output t stat brand value (5.801) is greater than t table (1.978) and of sig. (0.004) <alpha
(0.05), then the second hypothesis which states brand value positive effect on brand loyalty is accepted,
and t Stat brand value (5.801) is greater than t table (1.978) and sig. (0.000) <alpha (0.05), then the
third hypothesis which states brand trust positive effect on brand loyalty is accepted.
To test the moderating influence of regression analysis is used sub-group with Chow Test (Ghozali,
2006) with the following formula:
Based on the analysis of test chow, calculated F values obtained for 1.004 is smaller than the value of F
table with df (2; 134) of 3.064, it can be concluded that the regression equation between sub-groups of
observations introvert and extrovert personality types did not differ, this shows that type of personality
did not moderate the relationship between brand value and brand trust to brand loyalty.
3. Limitations and Future Research Agenda
Several limitations of this study can be described as follows: 1). Although the regression equation
model fit, but its still very low of R2 , either the first regression model and in the second regression
model, therefore in future studies will need to add the independent variables as antecedents of brand
trust and brand loyalty. The research found that personality type variables are not able to moderate the
relationship between brand value and brand trust to brand loyalty, therefore, need to try another
moderating variables such as product involment and variety seeking.
V. CONCLUSIONS AND RECOMMENDATIONS
1. conclusion
The results showed that the value percieve positive influence on trust, value and confidence percieve
positive influence on brand loyalty, moderation and not personality perecieve relationship between
value and confidence to brand loyalty.
2. Suggestion
To increase brand loyalty facebook should enhance brand value that can be done by way of a good
innovation on display sites, services, or features available to users more comfortable when using it,
facebook always made simple, so easy to learn how to use it, improve the ease of site access facebook
social network either through a PC computer, laptop, or mobile phone / smartphone., continuously
improve the ability of facebook as a tool to communicate.
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