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The Effect of Profit System, Product Trust, Social Group Influence On Member Satisfaction On Nano Herbal Product: Sunpro Propolis
The Effect of Profit System, Product Trust, Social Group Influence On Member Satisfaction On Nano Herbal Product: Sunpro Propolis
ISSN No:-2456-2165
Abstract:- This study examines the antecedents and supplements and herbal medicines to maintain body
outcomes of using Sunpro brand propolis nano- immunity has become a trend in the community. Products
supplements as part (nano-foods) from the perspective of such as red ginger, turmeric, galangal, and bee products like
multi-level marketing members. The research honey and propolis have become popular. This is evidenced
investigated the preferences of 375 members who have by the increase in the number of health supplement and
purchased the supplement repeatedly mainly to maintain herbal products allowed to circulate by the BPOM in 2022.
their body health. Through structured interviews and It is estimated that national herbal product sales will reach
questionnaires, the study found that members' IDR 23 trillion in 2025, up from IDR 13.8 trillion in 2020.
satisfaction was not influenced by the profitt system, but
trust in the product and social group influence were the Propolis, a valuable by-product of the meliponiculture
main drivers affecting multi-level marketing members' industry, has gained significant attention due to its
satisfaction with the supplement. In addition, peer-to- remarkable pharmacological importance (Chin Kung, 2022).
peer influence is also important in creating awareness As a complex mixture of resins collected by honey bees
and influencing other members to use the supplement. from various plant saps, it is further enriched by salivary
secretions and enzymes and used for the construction and
Keywords:- Multi Level Marketing, Member Satisfaction, protection of bee nests (Sahlan, 2021). As of June 2022,
Profit System, Trust in the Product, Social Influence Group, there are 790 products registered with the Indonesian Food
Peer-to-Peer Influence. and Drug Authority (BPOM) that contain propolis (BPOM,
2022). Despite its popularity, 55% of the general public
I. INTRODUCTION surveyed expressed their dislike for the Multi Level
Marketing (MLM) sales system, through which 80% of
Indonesia, as the largest economic power in Southeast propolis products are sold.
Asia, has experienced significant impacts from the COVID-
19 pandemic that began in December 2019. This pandemic In 2019, propolis accounted for 10% of the national
has affected various business sectors, especially Small and herbal product market share, a little-known fact due to the
medium-sized enterprises (SMEs), with a decrease in dominance of direct MLM sales. Analysis of Google Trends
turnover of up to 78% according to OKE OCE SMEs data. over the past five years shows an increase in searches for
The recession that lasted from the end of 2019 to the end of propolis and specific brands such as British Propolis, Melia
2021 hit the Indonesian economy. However, in the second Propolis, and Nasa Propolis. Sunpro Propolis, a PT XYZ
quarter of 2022, the Indonesian economy began to rebound, product sold exclusively through the MLM system at PT
with Bank Indonesia predicting economic growth between Natural Nusantara, uses nano technology in its production.
4.7-5.5% in 2022, supported by global economic Despite having advanced production technology, its sales
improvement, increased domestic demand, and policy are assumed to be lower than British Propolis due to less
stimulus (Bank Indonesia, 2022). search demand. According to 2019 data from PT XYZ, 80%
of propolis product sales were conducted through direct
In May 2022, President of the Republic of Indonesia, sales systems. Concerns have been raised about the
Joko Widodo, eased regulations to revive the economy, with familiarity of propolis and the Multi-level Marketing
the community starting to resume normal activities and free (MLM) sales system among the general public, as it is
to travel provided they have been vaccinated with the third feared that propolis may only be known within certain
dose. During the pandemic, the community also adopted a circles. Preliminary surveys were conducted to gauge public
healthier lifestyle, including a 51.20% increase in familiarity with propolis and the MLM system. The results
multivitamin consumption in 2020. However, the decrease of these surveys will be discussed in this study (PT XYX,
in people's purchasing power remains a challenge, with a 2019).
decrease in the purchasing power of farmers and
construction workers. In addition, the consumption of
Convergent Validity
Convergent validity is a test of construct validity. An indicator is said to have good validity if it has value loading factor
greater than 0.70. However, a loading value of 0.5 to 0.60 is considered sufficient (Chin 1998 in Ghozali, 2014), so that it can be
used in research. Based on the estimation results using the help of the SmartPLS 3 program application is obtainedoutput model
testing as follows.
Table 4 shows the valuesloading factor for each construct of each variable. Based on the table it can be seen that allloading
factor worth more than 0.6. So it can be concluded that based on each construct in the study has good validity. Next will be
testingaverage variance extracted (AVE) to further strengthen the results ofconvergent validity with criteria when the AVE
value> 0.5 (Hair et al, 2019), then the construct used in the study is valid. Here are presented the test resultsaverage variance
extracted using the PLS 3.0 program:
Based on Table 5 it can be seen the resultsconvergent Testingdiscriminant validity done through analysisFornell-
validity based on valueaverage variance extracted. These Lacker Criterion namely the validity test is done by
results indicate that all latent variables have an AVE value comparing the correlation between variables or constructs
of more than 0.5. This indicates that the indicators that form with the square root ofAverage Variance Extracted (√). The
the latent construct haveconvergent validity which is good prediction is said to have a good AVE value if the AVE
when seen from the value average variance extracted. square root value of each latent variable is greater than the
correlation between other latent variables. Here is a table
Discriminant Validity Test Fornell-Lacker Criterion:
This testing process is carried out to measure how far a
construct is really different from other constructs.
Based on test results discriminant validity through fornell-lacker criterion it can be seen that the AVE root (√) for each
construct is greater than the correlation of each construct with other constructs. Another method that can be used to measure
discriminant validity is through analysis cross-loading between the indicators and their constructs, namely by comparing the
correlation of the indicators with the constructs associated with the correlation coefficient with other constructs. The correlation
Based on Table 7 it can be seen that all indicators have a high correlation with the construct compared to other constructs. So
it can be concluded that the research model has good discriminant validity at discriminant validity cross loading.
Test Reliability
Cronbach’s Alpha and Composite Reliability to determine whether or not the construct reliability is good. Each construct is
said to be reliable if it hasCronbach’s Alpha and Composite Reliability which is greater than 0.70 (Hair et al, 2017) can be said to
be reliable, but ifCronbach’s Alpha and Composite Reliability which is greater than 0.60 can still be said to be reliable. Here are
presented the test resultsreliability using the Smart PLS 3.0 program.
Based on Table 8 it can be seen that there are latent Table 9 R Square
constructs that have valuecronbach’s alpha more than 0.6, R Square Strong Relationship
this indicates that the latent construct hasreliability the good Member Satisfaction Strong
one. Apart from that on value composite reliability all latent 0,585
(AND)
constructs also have a value greater than 0.60. Based on Source: Data Processing (2023)
valuecronbach’s alpha andcomposite reliability obtained,
indicates that the model has good reliability. According to Chin (1998) in Yamin and Kurniawan
(2011:21), R Square with a value of 0.67 indicates a strong
Structural Model Testing (Inner Model) model, a value of 0.33 indicates a moderate model and a
Evaluation of the inner model is an analysis of the value of 0.19 indicates a weak model. From the results of
results of the relationship between constructs. Inner model Table 9 it can be seen that the R-Square for
testing consists of R square, f square,Q-square predictive variablesMember Satisfaction (Y) of 0.585 which means
relevance, and test the hypothesis. thatProfit System (X1), Trust in Product (X2), andSocial
Group Influence (X3) simultaneously affect theMember
R Square Satisfaction (Y) of 58.5%, while the remaining 41.5% is
Furthermore, based on the test results with SmartPLS influenced by other variables not examined in this study.
3., the following R Square results are obtained.
Tabel 10 F Square
Variable Effect Size Rating
Member Satisfaction (AND)
Profit System (X1) 0,009 Small
Trust in Product (X2) 0,028 Small
Social Group Influence (X3) 0,735 Big
Source: Data Processing (2023)
Based on the calculation results above it is known that Table 12 T-table Values
the valueQ square greater than 0, this means that the One tailed Two tailed
observed values have been reconstructed properly so that the t-table 1.64 1.96
model has predictive relevance. This means that there is a
58.5% relative effect of the structural model on According to Kock, N. (2016), with a confidence level of
observational measurements for endogenous latent 95% (alpha 5%), two tailed, the following t-table values
variables, and as much as 41.5% is a model error. are obtained:
Hypothesis Test If the t-statistic value is > 1.96 (used for direct
Hypothesis testing in this study was carried out using influence), then H0 rejected and H1 accepted.
the path coefficient, t-value, and p-value. To assess the If the t-statistic value < 1.96 (used for direct effect), then
significance and predictions in hypothesis testing can be H0 accepted and H1 rejected.
seen from the valuepath coefficient andt-value (Kock, N.
2016). According to Kock, N (2016) assessing predictions The magnitude of the significance value between the
and significance in hypothesis testing can be seenp-value. variables tested is presented in the form of the value
The t-table values can be seen in the following table. contained in the arrow that connects one of the variables to
the variable that is the goal.
Influence Profit System to Member Satisfaction Sunpro H1.1: c1 ≠ 0: profit system influencemember
Propolis PT Natural Nusantara satisfaction Sunpro Propolis PT Natural Nusantara.
The first research hypothesis reads: “profit system
influencemember satisfaction Sunpro Propolis PT Natural Furthermore, based on the hypothesis above, a
Nusantara”. And from this hypothesis it is developed into a hypothesis test was carried out using the method
statistical hypothesis as follows: bootstrapping using SmartPLS software, and the following
values are obtained:
From the results of Table 13 above, the value is Influence Trust in Product to Member Satisfaction
obtainedOriginal Sample (O) which is equal to 0.064 Sunpro Propolis PT Natural Nusantara
indicates that the direction of influence profit system to The second research hypothesis reads: "trust in
member satisfaction Sunpro Propolis PT Natural Nusantara products influencemember satisfaction on PT Natural
is positive or unidirectional, meaning the betterprofit system Nusantara's Sunpro Propolis product. And from this
then increasingmember satisfaction Sunpro Propolis PT hypothesis it is developed into a statistical hypothesis as
Natural Nusantara. Influenceprofit system tomember follows:
satisfaction Sunpro Propolis PT Natural Nusantara is not
significant, with a t-statistic value of 1.721 which is less H1.2: c2 ≠ 0: Trust in products influencemember
than the t table or 1.721 <1.96, and the valuep value of satisfaction Sunpro Propolis PT Natural Nusantara.
0.086 greater than alpha 5% (0.05). Thus, H1.1 rejected mean
sprofit system not affect member satisfaction Sunpro Furthermore, based on the hypothesis above, a
Propolis PT Natural Nusantara. hypothesis test was carried out using the
methodbootstrapping using SmartPLS software, and the
following values are obtained:
Table 14 Path Coefficient and t-Calculate InfluenceTrust in Product tomember satisfaction Sunpro Propolis PT Natural Nusantara
Influence Original Sample (O) t-Statistics p-value Conclusion
Trust in Product tomember satisfaction
0,131 2,087 0,037 Reject H0.2
Sunpro Propolis PT Natural Nusantara
Source: Data Processing (2023)
From the results of Table 14 above, the value is Influence Social Group Influence toMember Satisfaction
obtainedOriginal Sample (O) which is equal to 0.131 Sunpro Propolis PT Natural Nusantara
indicates that the direction of influencetrust in product The third research hypothesis reads: "social group
tomember satisfaction Sunpro Propolis PT Natural influence influencemember satisfaction Sunpro Propolis PT
Nusantara is positive or unidirectional, meaning the Natural Nusantara”. And from this hypothesis it is
bettertrust in product then increasingmember satisfaction developed into a statistical hypothesis as follows:
Sunpro Propolis PT Natural Nusantara. Influencetrust in
product tomember satisfaction Sunpro Propolis PT Natural H1.3: c3 ≠ 0: social group influence influencemember
Nusantara is significant, with a t-statistic value of 2.087 satisfaction Sunpro Propolis PT Natural Nusantara.
greater than t table or 2.087 > 1.96, and a valuep value of
0.037 smaller than alpha 5% (0.05). Thus, H1.2 accepted Furthermore, based on the hypothesis above, a
meaningtrust in product influence member satisfaction hypothesis test was carried out using the
Sunpro Propolis PT Natural Nusantara. methodbootstrapping using SmartPLS software, and the
following values are obtained:
Table 15 Path Coefficient and t-Calculate Influence Social Group Influence tomember satisfaction Sunpro
Propolis PT Natural Nusantara
Influence Original Sample (O) t-Statistics p-value Conclusion
Social group influence tomember satisfaction
0,666 12,798 0,000 Reject H0.3
Sunpro Propolis PT Natural Nusantara
Source: Data Processing (2023)
From the results of Table 15 above, the value is (0.05). Thus, H1.3 accepted meaning social group influence
obtainedOriginal Sample (O) which is equal to 0.666 influencemember satisfaction Sunpro Propolis PT
indicates that the direction of influencesocial group Natural Nusantara.
influence tomember satisfaction Sunpro Propolis PT Natural
Nusantara is positive or unidirectional, meaning the
bettersocial group influence then increasingmember
satisfaction Sunpro Propolis PT Natural Nusantara.
Influencesocial group influence tomember satisfaction
Sunpro Propolis PT Natural Nusantara is significant, with a
t-statistic value of 12.798 greater than t table or 12.798 >
1.96, and a valuep value of 0.000 smaller than alpha 5%
Table 21 R Square
R Square R Square Adjusted
Intention to Recommend (Y) 0,561 0,556
Member Satisfaction (Z) 0,578 0,574
Table 22 F-Square
Intention to Recommend (Y) Member Satisfaction (Z)
Member Satisfaction (Z) 0,289
Profit System (X1) 0,011 0,009
Social Group Influence (X3) 0,008 0,708
Trust in Product (X2) 0,043 0,029