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Bab 2-ts-r2013-0089
Bab 2-ts-r2013-0089
THEORITICAL REVIEW
marketing including product, price, location, and promotions that are used to
And Ivy (2008) revealed that the Marketing Mix is a set of marketing
tools used by companies or institutions to create the desired response from the
target consumer.
concept of Marketing Mix consists of only 4P, namely Product, Price, Place,
(tangible products), while for products related to services are identical with the
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The purpose of the adding these three new elements are in order to meet
are : Product, Price, Place, Promotion, People, Process, and Physical Evidence.
Why in this study the authors use the 7P of Marketing Mix? Because the
2.1.1 Product
customer needs.
Dwyer (2010) states that a product has a life cycle such as that
possessed by living things. The life cycle is then referred to as Product Live
Cycle or PLC which are the cycle or stages of a product. These stages consist
community in order to attract the attention of the public. In this stage the need
for high profits are not required, the only needs on this stage is people
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awareness and at this stage also determine the market price. (b) Growth, at
this stage the product began to gain wide attention from society, people have
started using the products, the company began to gain profit from products
sold and sales and marketing strategy began to be maximized. At this stage
also competitors of these products began to appear. (c) Maturity, to reach this
stage, a successful product must first pass through two previous stages
(introduction and growth stage). At this stage the product is in the golden
peak, a very large volume of product sales, companies get profit greatly, and
the competitors are trying to steal the position of the peak. (d) Decline, at this
stage, a product begins to lose its golden ages, people have started turning to
other products that are more interesting. At this stage a sale or discount
a new product to replace this product. (e) Withdrawl, at this stage of a product
are not enthused by the public anymore. You could say at this stage of the
products are the end result of the process of fulfillment of human needs .
2.1.2 Price
sum of money to be paid for a product / service, as well as the overall value of
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goods and services as exchanged by the customer when using the products /
services.
marketing mix that charged to the consumer in exchange for what they get.
Dwyer (2009) explains that the price is the money paid by the buyer to
the seller of any goods or services. Furthermore, Dwyer also explained that
the price is a very important base in the field of marketing and business.
Types of pricing (a) Premium Pricing, usually applied to the goods sold or
Pricing, usually applied by selling only the units of the goods only without
any bonuses and other gifts. (d) Price Skimming, usually applied to the goods
or services that are launched first time through the internet. (e) Psychological
Pricing, usually applied by using the decimal fraction of a price, for example
Rp999.999, - (f) Product Line Pricing, the examples is if you take 1month
subscription you have to pay Rp100.000,- If you subscribe for 2 months you
only pay Rp200.000,- but if you take 3 months, you can get it only Rp
cheapest price for the first buyer in a given period. (h) Optional Product
are optional. (i) Captive Product Pricing, usually applied if we buy an item or
product, updates on the products come from the same manufacturer. (j)
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Product Bundle Pricing, usually applied to give a price on a product that's put
giving incentives or bonuses for their purchases have been made. (l)
From the definitions above, the authors can conclude that the price is
the amount of money or value should we pay for services or products that we
have got.
2.1.3 Place
Ivy (2008) defines a place as the distribution method that the company
consumers can obtain goods or services, and how can these products can reach
the place.
Yanchula (2008) said that place has always been associated with
identity and our early experiences of the world and therefore has an intrinsic
services are moved from the manufacturer/ service provider to the user or
storing goods, and then making them available for the customer. Getting the
right product to the right place at the right time involves the distribution
wholesalers who then sell to retailers, while others will prefer to sell directly
to retailers or customers.
places are locations where the product, be it goods or services can be achieved
2.1.4 Promotion
2.1.4.1 Advertising
producers must consider the following (a) Defining target, the aim of these
product. (b) Setting the advertising budget, there are four methods used in
setting the budget, which is based on the ability of the company, a percentage
ad. To develop the creative process is done by determine what message will
advertising media, things to consider is the scope of the media, frequency, and
also the effects on using that media. (e) Evaluate advertising program, to
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evaluated this by looking at sales figures after the ad aired and also compares
(coupons, contest or race, etc.) to improve the response from consumers. Sales
Benefits of sales promotion are (a) Raising the level of attention and guide
good image of the company / producer, handles bad imaging (rumors, news
and bad events). PR uses many tools in conducting their activities, such as
lobbying.
Kotler (2010) states that personal selling is the most effective on the
last stage of the buying process. Primarily to influence the minds calom a
product so that consumers will eventually want to buy the product. Kotller
further states that the sale of an individual, any sales must have:
2.1.5 People
Banerjee (2010), People are the most important element of any service
moment, and aspects of the customer experience are altered to meet the
Ivy, 2008, revealed that people are all the people involved in the
people are all people, whether customers, employees, and anyone else
involved in it.
2.1.6 Process
activities on the company that including how to create and deliver product and
made, how these products get to consumers and they are interconnected with
each other.
Behera (2011) explained that the process is refers to the methods and
knowledge on whether the services are helpful to the customers, if they are
provided in time, if the customers are informed in hand about the services and
within the business and marketing literature. Some see processes as a means
to achieve an outcome,
processes is a method used so that the consumer or the customer can get and
a. Packaging.
b. Internet/web pages.
d. Brochures.
e. Furnishings.
g. Uniforms.
h. Business cards.
evidence is the effect obtained by the consumer or service user that provides
From the description of the 7P Marketing Mix and it’s element inside
and also based on author analysis. The authors draw the conclusion that the
bonding and also influence the formation of loyalty among the passengers
Sriwijaya Air.
customer satisfaction.
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brand loyalty.
emotional bonding?
emerged as a key variable in many firms, and it has been shown to affect
satisfied and happy will behave positively, they will buy more and will return
Attractive, these attributes lead to satisfaction if successfully met, but will not
lead to satisfaction if successfully met, and vice versa if it fails to be met will
cause dissatisfaction. (c) Must Be, this attribute must be taken and will
produce high satisfaction when successfully met. (d) Indifferent, this attribute
is not based on good or bad aspects and will have no effect on satisfaction or
satisfaction.
Gilbert (2006) said that satisfied customer is the key for long term
above, the authors draw the conclusion that customer satisfaction is one
bonding.
bonding.
concerns like security, love, freedom, etc. which are endangered in the course
of events. The wish to restore the desirable states that result from the
between a product with consumers. Consumers who are satisfied with a brand,
can be done by serving customers with the best, providing a high level of
customer satisfaction
strong emotional bond between customer and product, loyalty to a product are
2.4 Loyalty
brand loyalty. Schiffman (2010) said that brand loyalty is a strong bond from
a customer who appears as the effect of the use of a product or service in the
namely:
1. Behavior
2. Attitude
competing products.
Level
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Level 4
Level 3
Level 2
Level 1
a. The most basic level of loyalty is the buyer that not loyal at all, not
interested in any brands offered. In general, consumers like this are like to
move between the brand if the brand offer good bargain, they usually buy
b. The second level of loyalty, consumers were satisfied with the products
habitual buyers.
c. The third level contains the loyalty of satisfied customers, but they bear
d. The fourth level contains the loyalty of consumers who really liked the
quality. At this level of consumer disebit with his brand, because there are
e. At the top level contains the loyal customers of these products, they find a
pride when using the product. The product is very important, both in
terms of functions like the expression of who they really are (Committed
buyer).
brand loyalty is a strong bond between the consumer with a product or service
that they uses in where that bond is very difficult to be broken by the
competitors.
consumers are reaching the stage of brand loyalty can be measured with the
following statement:
the concept of frequent flyer. This concept is a concept whereby the operator
provides an extra bonus miles for passengers who could be collected later
after that can be exchanged for free travel tickets or special souvernir. Any
passengers who fly and become a member of a frequent flyer this will get the
AsiaMiles, Garuda Indonesia and Garuda Frequent Flyer (GFF) and others.
services with the motivation that if you use their services will get extra points,
and later when it reaches a certain value customers can trade them with free
operator can increase ticket sales while maintaining relationships with its
“The importance of developing customer loyalty is part of the unwieldy crisis airlines face
today as charging additional fees is viewed by them as one of the top tactics to increase
revenues.”
“Air carriers have reason to fret over customer loyalty and retention since a Colloquy
research firm survey of U.S. consumers found that frequent travelers are becoming less loyal
to a variety of travel loyalty programs, with a 31 percent decline in active participation in
frequent flier, hotel and other travel rewards programs as the economy has worsened over the
last two years.”
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“The research showed that a strong customer relationship with an airline improves repeat
business and a frequent flyer program can directly influence the decision to purchase a ticket
from one airline versus another.” (Lopez, 2009)
From the article above the authors conclude that the nowadays airline
product. And of the many ways that have been Sriwijaya Air in the process of
doing business, could it create a strong brand loyalty among its customers?
the desired response from the target consumer. In the activities related to business
services, 7P Marketing mix is a basic element that can not be separated. This includes
product, price, place, promotion, process, people, and physical evidence. Everything
is interrelated / interconnected with each other. Everything must goes well to create
To build customer satisfaction, emotional bonding, and good brand loyalty for
a service product, every element of the marketing mix must have the ability to meet
human needs (product, price), easily obtained by consumers (place), able to attract
potential consumers and consumers to buy and use products (promotion), able to
provide good service and also able to fulfill the consumers need (people, process) and
can obtain by the manufacturer, the customer satisfaction, emotional bonding, and
brand loyalty can establish among the consumers. The better marketing mix activities
bonding, and brand loyalty. A study conducted by Paramita and Kuwanto (2009)
concerning the relationship between marketing mix and customer satisfaction levels,
the best service to attract customers, this applies to all airlines, whether using the
Based on the definition above and logical thinking, made the hypothesis as
follows:
customer satisfaction.
loyalty.
emotional bonding?
Anderson ans Sullivan (2009) said that higher customer satisfaction leads to
higher level of repurchase intent, customer advocacy, and customer retention. When
customers are satisfied with the product and services they use / they get, they will re-
use the same product and services back and also belief that if they use the service
product again they would get the same satisfaction they previously received. While
customer satisfaction has been established, customers will tend to use the product
continuously, soby the time they it will form the bond between customer and product.
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Customers who are satisfied will be difficult to switch to other brands, they tend to be
customer loyalty and the loyalty it will create long-term relationship (Zeithaml et al.,
1996). When customers feel comfortable with what they get, they tend to be more
loyal to the brand and will always use the brand. These products will always be their
first choice. They will always tend to use the product without comparing it with other
brands and will always recommend these products to family and others. A higher
customer satisfaction will lead into high emotional bonding and high brand loyalty
Based on the definition above and logical thinking, made the hypothesis as
follows:
bonding.
important factor in maintaining customer service so customers will still come back
and recommend products to others. Furthermore, Lovelock (2009) states that create
an emotional bond with customers can be done by serving customers with the best,
customer and the product will create strong brand loyalty. To create loyalty on their
customer, many airline use customer loyalty program called frequent flyer. People
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who are member of the airlines frequent flyer can get extra benefit by earning point
once they fly using that airline. They can redeem the point with free upgrade to
business or first class, free hotel voucher, and other extra benefit. Another way to
create loyalty is bya using nice and warm emotional approach, they train their staff
and also the flight attendant to serve the passenger very good, able to fulfill passanger
needs, be nice to passanger, able to help passanger. This method will create emotional
Based on the definition above and logical thinking, made the hypothesis as
follows: