BOARDS OF C01MITTEE
Transcript of BOARDS OF C01MITTEE
BOARDS OF C01MITTEE
Director Dr H K Prihartono AH Drs SSos MM
Chief in Charge Dr Rita Zulbett SSi MM
Managing Committee Yudhy Purwanto SS MHum MM
Reviewers Dr Sudirman SEAk MSi Lukfnanulhakim Almamalik ST MT Yuda Syalffdin ST MKo~ Drg Farida Gustini MM Akasah SSo~ NLM Resanti Lestari S-PdIv1Pd_
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Santi Hariyani
THE IMPACT OF DEVIDENDPiksi Canesha
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Bandung (AUSTRALIAN STOCK EXCHAN GE MARKET DIRECTORY)
Heru Su1istyo Sultan Agung THE ROLE OF SOSAL CAPITAL AND Mutamimah Islamic UniverSity CONSUMER LOYALTY IN ISLAMICS S
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PERFORMANCE OF MINIMARKET
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Islamic UniverSity 9 MA lrfan Rahmana
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Polytechnic of Ousa Sumarraya Praktisi
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Of Indonesia Jaka Maulana
Piks i Ganesha 12 Polytechni c
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SECTOR REVI EW IN COME TAX ARTICLE 26
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Cicilia Larasati Ciputra University Rembulan Surabaya
Chancellor University Atin Hafidiah Yana
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THE ANALYSIS OF FINANCIAL CHARACTERISTIC AND INDEX OF
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lin Kurniawati LP31 PolytechniC JOB DlClPLINE IN SUPPORTING THE
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28 Rina Anindita Esa Unggul TRHOUGH WATKIN S AND MARSI CK I
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29 Sartika i REAC H THE GOlL OF THE
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Abdullah J Kutai Bogor ANALYSlS
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DIFfERENCES IN ATTITUDES BETWEEN PSYC HOLOGI STS AN D
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139 Wempi Eka Polytechnic
EX ISTENCE OF FORMALIN 139 Rusmana CONTA INED WET NOODLES AT
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Shinta Dev i QUALITY OF LIFE (QOl)
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BANTUL YOGYAKARTA
I
PERFORMANCE OBSERVED FROM
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89 Abdul Rahim
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I CO MPANY IN THE INDUSTRIAL
IAREA OF OCEAN FISHERIES PORT KENOARI
Eny Retna Akademi Kebidanan
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92 PANT RAPIH HO SPITAL 92Nugroho M2rkus University
YOGYAKARTA BASED SM
ELEMENTS OF MANAGEMENT
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1st Piksi International Conference on Knowledge and Sciences 2014 Page | 9
THE ROLE OF DYNAMIC MODEL OF CUSTOMER ENGAGEMENT TOWARD CUSTOMER VALUE
Ardian Adhiatma
M A Irfan Rahmana Dept of Management Faculty of Economics UNISSULA Semarang Indonesia
E-mail ardianunissulaacid irfanrahmanayahoocom
ABSTRACT The added value of the company at this time can not always be built only through customer satisfaction but more to factors such as communication coaching and sharing of the company as stated in the customer engagement The purpose of this study is to know the role of dynamic models of customer engagement toward customer value Explanatory research is conducted on 50 owners managers and authorized personnel in corporate decision The sampling used is purposive sampling Furthermore there are three variables involved in this study those are customer engagement relationship quality and customer value The data of these three variables is obtained from questionnaires Partial least squares analysis with smart PLS 20 is used to determine the correlation within variables Customer engagement shows a positive results and significant influence to customer value either directly or indirectly through the relationship quality in which the influence of indirect coefficient (0499) is higher than the direct coefficient (0491) So it can be concluded that customer engagement has a role in improving customer value through relationship quality
Keywords customer engagement relationship quality customer value
1st Piksi International Conference on Knowledge and Sciences 2014 Page | 10
A INTRODUCTION Nowadays Challenges in the business field have become increasingly tight and
complicated because the presence of dynamical complexities in the market values in which the needs and demands of customers as main stakeholders have changed massively The change of customers condition in demand occur because the presences of information and choices have grown rapidly Not only self-needs experiencing a change but also the ways customers access the needs also change from time to time In the past customer satisfactions were mostly determined by the quality of productsservices pricing and after-sales service Briefly its only three aspects that got too much attention marketers only focused in improving the quality of products pressing price efficiency to be affordable and opening outlets of after sales service Yet in the present day these aspects are considered not meet expectations customers want more of these aspects as a prerequisite for their satisfaction In conclusion it means that the needs of customers expectations has changed so that the programs and approaches to satisfy customers should also be conducted (Rustono 2010)
The phenomena as mentioned above also occur in courier Industries The rapid competition of courier industries in Indonesia is not only caused by globalization but also customers awareness of price and high demands The rapid growth of communication and technology also contribute to the increase of competition intensity since it gives customers access to more information about the wide range of products or services offered These conditions lead customers to have more choices in spending their money
The added value of the company at this time can not always be built only through customer satisfaction but also more to other factors such as communication coaching and sharing of the company as stated in the customer engagement Customer engagement is the peak of the companys relationship with customers to survive and thrive to launch new products to pay more attention into competitor products to sell more products from competitors Besides that the companies also have to implement Customer Relationship Management whereby customer engagement is one of its components At the level of customer engagement relationship built has already been a combination of rational and emotional aspects The quality of this relationship has reached the level of the inner closeness and long-term dimension (Shevlin 2011 in Vivek 2011)
The concept of customer engagement has also been frequently considered as a potential superior strength to predict and to explain the context of the service retention and customer loyalty (Bowden 2009 in Hollebeek 2009) Furthermore Customer engagement is a promising new concept and expected to exceed the contribution given by traditional relational construction including perceived quality customer engagement and satisfaction in explaining and predicting customer value (Hollebeek 2009) Customer value is defined as the emotional bond that exists between customers and manufacturers because the customers use the products and services of the company and then find that the product or service give them additional value (Tjiptono 2005)
The study by Hollebeek (2009) concludes that the customers engagement improve loyalty satisfaction empowerment connection emotional bonding trust and commitment Furthermore Kumar et al (2010) emphasizes that customers can be involved in creating value for the company in various ways first the customer lifetime value (customer buying behavior) second the customer referrals value (related to referral incentives of new customers) third customer influence value (related to customers behavior to influence other customers which increases the acquisition retention and share of wallet through communication among customers and existing prospects) and fourth is the customer knowledge value (surplus for the company with feedback from customers) Customer engagemet value (CEV) provides a comprehensive framework that can ultimately lead to more efficient marketing strategies that enable a higher long-term contribution to customers The study by Vivek (2011) proves that customers engagement in turn can positively influence the companys relationship with customers and raises good faith and intention to do business with the company
The capability of Customer engagement in predicting customer value has been adopted as a marketing strategy by PT Siba Courier Indonesia This strategy is implemented because until this time if it is compared with its competitors PT Siba Courier Indonesia is far behind from their competitors in terms of the availability of fleet infrastructure and age In the future PT Siba Courier Indonesia is predicted to be abandoned by its customers if only rely on the availability of
1st Piksi International Conference on Knowledge and Sciences 2014 Page | 11
limited facilities and infrastructure The fact that the customers of PT Siba Courier Indonesia both in Jakarta and Semarang are still loyal to use the services of this company and even if they keep patient waiting queue to obtain service because the company have overload in order delivery If in general to improve the competitiveness and to maintain the survival of the company efforts are made through internal factors (improvement of service quality provision of infrastructure and facilities services technological advances etc) in this study exactly at PT Siba Courier Indonesia the related cases are not found Therefore it is interesting to do a more focused study on the role of dynamic models of customer engagement toward customer value in the PT Siba Courier Indonesia
B LITERATURE REVIEW
Customer Engagement Customer engagement (CE) is the intensity of customer participation by representatives
of the organization and through other customers in the process of collaborative knowledge exchange (Wagner and Majchrzak 200720) in Vivek (2011) Engagement refers to customersrsquo perception toward the importance or personal relevance of objects events and activities In this case Customers will acquire that a certain product has a personal relevance and relationship with them Relationship quality
The relationship quality or connections is represented through real-image of relationship and individual experience of each party in the relationship A subjective connection is obtained through positive passion energy matter and togetherness (Quinn and Dutton 2005 Heaphy amp Dutton 2008 in Vivek 2011) in which Two people involved in the connection and active participation (Heaphy and Dutton Vivek 2008267 in 2011)
In this study connection is defined as a positive emotional relationship that customers have a sense of belonging to the companies The quality of relationship construction is based on the amount of time spent in the workplace employees are significantly influenced by their relationships formed in the workplace so the connection significantly influences the function of the organization Customer value
The concept of customer value (CV) by Kotler and Keller (2009 14) is the combination of quality service price of products or services Furthermore Customer value is the dispute between the amount of value for customers and the total cost of customers and the amount of value for customers are customers expected profit of certain goods or services
According to Best in (Sumarwan et al 2010 30) the customer value is a benefit or profit obtained by customers lessened by the cost of the purchase Based on this concept customer value is derived from the economic customer and emotional benefits Economic Benefit is obtained from surplus of price and cost but not the cost of purchase which includes acquisition ownership usage maintenance repairment and disposal costs Customers Benefit is derived from the product appearance service and reputation Emotional Benefit is the overplus of the product to meet the emotional needs of the customer associated with psychological needs types of customers personality and customer personal value
C RESEARCH METHOD
The population of this study is all customers of PT Siba Courier Indonesia totaling 40 companies spread over two cities Semarang and Jakarta Because of limited number of population the total population is all designated as sample or census research Moreover it is also with the consideration that using total population as a sample will get a more representative description and minimize the error rates so that the data obtained will be close the real value The sample proposed is the companies which at least for three years have actively used services of PT Siba Courier Indonesia Then from each company it is selected two people from the owner and the manager or the other person who has the authority to make decision (the decision maker)
The data collection method is purposive sampling and the analysis techniques is performed by Partial Least Square and Sobel Test
Table 1
1st Piksi International Conference on Knowledge and Sciences 2014 Page | 12
Research Variables and Indicators No Variables Indicators Shape
1 Customer engagement is the level of customers attention to the company
Sharing (CE1)
Likert Scale 1-5
Learning (CE2) Advocating (CE3) Socialization (CE4) Co-developing (CE5)
2 Relationship quality is quality of the relationship created between customer and companies
Trust (RQ1) Commitment (RQ2) Satisfaction (RQ3)
3
Customer value is the matched value perceived by customers on the services prices of the products quality received by them
Connection with Company (CV1) Goodwill (CV2) Word of Mouth (CV3) Affective Commitment (CV4) Intent to do Business (CV5)
Data Analysis
PLS (Partial Least Square) is used to examine and test the hypothesis proposed PLS has advantages that lsquoit involves no assumptions about the population or scale of measurement (Fornell amp Bookstein 1982) and consequently it works without distributional assumptions and by nominal ordinal and interval scaled variables However one has to bear in mind that the PLS like any statistical technique also requires certain assumptions to be fulfilled Apart from the standard ones (ie the classical Gaussian linear ordinary least squares) regression models (see eg Gujarati 1995) the most important predictor of the assumption is the specification (Chin amp Newsted 1999)
D FINDINGS Based on data analysis of the study it can be explained the analysis of partial least
squares (PLS) as follows Inner PLS model results
The indicators of customer engagement consist of sharing (CE1) learning (CE2) advocating (CE3) socialization (CE4) and co-developing (CE5) The outline of the PLS model for the indicators proposed is shown in Table 2
Table 2 Test Results of Validity and Reliability of Customer Engagement Indicator Variables
No Indicator Test Validity Composite Reliability Loading T-Statistic Criteria
1 CE 1 0919 9438 valid
0876 2 CE 2 0753 5330 valid 3 CE 3 0711 4915 valid 4 CE 4 0851 7639 valid 5 CE 5 0854 6314 valid
Sources Primary data processed in 2014
Table 2 is the result of convergent validity test 5 indicators of customer engagement have loading factor value more than 05 by the T statistical value of all indicators greater than T Table by 196 so that all indicators of customer engagement can be said to be valid The order of the strongest to the weakest indicator is CE1 (sharing) CE5 (co-developing) CE4
1st Piksi International Conference on Knowledge and Sciences 2014 Page | 13
(socialization) CE2 (learning) and CE3 (advocating) Based on the composite reliability test of indicator measuring the construct it shows a satisfactory results in the amount of 0876 meaning that the construct of customer engagement can provide relatively similar results when it is measured again by the same subjects
The indicator of Relationship quality consists of three indicators namely trust (RQ1) commitment (RQ2) and satisfaction (RQ3) The results of the PLS model for the outer indicators is shown in Table 3 below
Table 3
Test Results of Validity and Reliability of Relationship Quality Indicator Variables
No Indicator Test Validity Composite Reliability Loading T-Statistic Criteria
1 RQ1 0822 4959 valid 0731 2 RQ2 0812 5508 valid
3 RQ3 0785 5318 valid
Sources Primary data were processed in 2014
Table 3 is the result of convergent validity test 3 indicators of relationship quality has a loading factor values more than 05 and the value of the T statistic is higher than the T table by 196 so that all indicators of relationship quality can be said to be valid The order of the strongest to the weakest indicator is RQ1 RQ2 and RQ3 Based on the composite reliability test of the indicators measuring construction it showes a satisfactory results in the amount of 0731 meaning that the relationship quality constructs can provide relatively similar results if it is measured again by the same subjects
The indicator of Customer value consists of 5 indicators the connection with the commpany (CV1) goodwill (CV2) word of mouth (CV3) affective commitment (CV4) and intent to do business (CV5) The result of outer model is in Table 4
Table 4 Test Results of Validity and Reliability of Customer value Indicator Variables
No Indicator Test Validity Composite Reliability Loading T-Statistic Criteria
1 CV1 0 815 9 382 valid
0860 2 CV2 0 752 6 211 valid 3 CV3 0 712 4 022 valid 4 CV4 0 886 7 349 valid 5 CV5 0 837 7 649 valid
Table 4 is the result of convergent validity test 5 indicators of customer value has a
loading factor value more than 05 and the value of statistical Tgt T Table by 196 so that all indicators of customer value can be said to be valid The order of the strongest to the weakest indicator is CV4 CV5 CV1 CV2 and CV3 Based on the composite reliability test of indicators measuring the block construct it shows a satisfactory results in the amount of 0860 meaning that the construct of customer value can provide relatively similar results if it is measured again by the same subjects Inner PLS model results
Inner models describes the relationship among latent variables based on substantive theory The results of the bootstrapping output graphs display the relationship among variables such as customer engagement relationship quality and customer value as shown in Figure 2
1st Piksi International Conference on Knowledge and Sciences 2014 Page | 14
Based on calculations in Figure 2 It is known that the direct influence of customer engagement on customer value is equal to 0491 with the indirect influence of 0984 x 0507 = 0499 It means that the indirect influence is higher than the direct Thus the relationship quality variable is the path of the relationship between the customer engagement and customer value Briefly it means that customer engagement can directly improve customer value by trying to increase the relationship quality first
Sources Primary data processed 2014 Figure 1
The relationship Model between the Customer Engagement Relationship quality and Customer value of PT Siba Courier Indonesia
Figure 1 also shows the magnitude of the determination coefficient The coefficient of determination is used to recognize how significant the influence of exogenous variables toward endogenous the higher the value of the coefficient of determination the higher the influence of exogenous variables on endogenous will be R-square value generated from the relationship between customer engagement with the relationship quality is 0969 meaning that the variation of relationship quality which can be explained by customer engagement is 969 while the remaining 31 is obtained from other variables Then R-square value of the relationship model between customer engagement relationship quality and customer value is 0988 it means that the variation of customer value that can be explained by the relationship quality and customer engagement is 988 while the remaining 12 are determined by other variables
Then the hypothesis test is performed by looking at the value of t count if tcount is higher than ttable (alpha 5 = 196) then the alternative hypothesis (H a) is accepted and H 0 is rejected and so that for the opposite Based on the PLS test the results of testing the relationship among variables can be seen in Table 9 and Figure 3
Table 5 Results of Inner Weight
No The relationship among variables Original Sample (O) T Statistics (| O Sterr |) Criteria
1 CE -gt CV 0491 2312 Significant 2 CE -gt RQ 0984 110053 Significant 3 RQ -gt CV 0507 2383 Significant
Sources Primary data processed 2014
1st Piksi International Conference on Knowledge and Sciences 2014 Page | 15
1 The first hypothesis the customer engagement significantly influences the relationship quality Based on the PLS calculations result in Table 8 testing the first hypothesis about the
influence of customer engagement on relationship quality it is obtained the value of the estimated coefficient (β) of 0984 with t statistic value of 110053 This result is much higher than t-table value which is only 196 Then it can be concluded that there is a positive significant influence on the customer engagement variable toward the relationship quality Thus the first hypothesis is accepted
2 The second hypothesis the customer engagement significantly influences the customer value Based on the PLS calculations result in Table 9 testing the second hypothesis about the
influence of customer engagement toward customer value it is obtained the value of the estimated coefficient (β) of 0491 with t statistic value of 2312 This result is higher than t-table value which is only 196 So it can be concluded that there is a positive significant influence of the customer engagement variable toward customer value Thus the second hypothesis is accepted
3 The third hypothesis relationship quality significantly influence customer value Based on the PLS calculations result in Table 9 testing the third hypothesis about the
influence of relationship quality on customer value it is obtained the value of the estimated coefficient (β) of 0507 with t statistic value of 2383 This result is higher than t-table value which is only 196 So it can be concluded that there is a positive significant influence of the relationship quality variable on customer value Thus the third hypothesis is accepted Sobel Test Results
Sobel test is conducted by testing the strength of the indirect influence of independent variables (customer engagement) toward dependent variable (customer value) through intervening variable (relationship quality) This test is done by Online Sobel Test Calculator for the Significance of Mediation by entering the regression coefficient and standard error values of the customer engagement variables to the relationship quality and the regression coefficient and standard error values of the relationship quality variable to customer value in which it gets the result as follows
Figure 4
Sobel Test Results Sobel test shown in Figure 4 shows the Sobel test statistic value of 23797 with a one-
side significance value of 0009 because the significance value is lt005 therefore it can be said that the relationship quality is the intervening variable of the correlation of customer engagement and customer value
E DISCUSSION In this study Customer engagement positively influences relationship quality it means
that the better the customer engagement the better the relationship quality between the customer and the company By involving customers such as Inviting them to share about the things to improve the performance of the company or promote cooperation between companies and customers (share) inviting customers to know more about the company (learning) motivating customers to inform others about the companys products or services (advocating) motivating customers to promote products services of the company (socialization) and motivating customers to contribute ideas that might contribute to the improvement of performance and service of the companies (co-developing) then it will be able to create a good quality relationships between the companies and customers
1st Piksi International Conference on Knowledge and Sciences 2014 Page | 16
This is in line with the findings by Saks (2006) which states that the employee engagement has been implemented as a means to explore and explain the organizational commitment and behaviors of the members and also applied as a predictor of customer ratings toward the companies Furthermore the finding of the study is also in accordance with the opinion of Salanova et al (2005) that engagement has also been recognized as a way to improve morale cohesion and psychological relationship between the customer and the company or organization
The quality of a good relationship is manifested by the growth of customer trust the presence of customer commitment to always use the companys services and customer satisfaction with the overall service provided by the company
Customer engagement in this study positively contribute to customer value the better the company does customer engagement efforts it will contribute to higher customer value Involving customers such as inviting them to share about the things to improve the performance of the company or promote cooperation between companies and customers (share) inviting customers to know more about the company (learning) motivating the customer to inform others about product and service of companies (advocating) motivating customers to promote products services company (socialization) and motivating customers to contribute ideas to improve the performance and service companies (co-developing) will be able to create high customer value
The studys findings are in line with the study conducted by Li and Dant in Vivek (2011) which concludes that the intensity of customer engagement will be positively related to the value received by customers By the time customers are treated very well and considered as part of the company it will raise the principle of reciprocity in which the customer will give the good attitude as good as what they have received by the company (Bagozzidalam Vivek 2011)
Companies Interaction to customers via initiative engagement strategies will make the reciprocity norm appear to customersrsquo engagement If the company successfully engage customers customers will recognize the benefits received and give return values to indicate behavioral intentions In the return of value received customers will have a good faith and affective commitment to the organization and may be willing to develop a strong relationship with the organization
Moreover in this study relationship quality give positive influence on customer value The better relationship quality the better the customer value will be It means that relationship quality is one of the important factors to increase customer value Relationship quality is needed to drive steer cultivate and maintain customer behavior towards the achievement of better corporate performance
Relationship quality in this study also serves as a mediator of the influence of customer engagement toward customer value Customer value will be stronger with the role of relationship quality in it Starting from involving customers by sharing it will create a good relationship between the company and customers Then One of the good form of relationship is the emergence of self-confidence of the customers toward the the company Based on these good relationships created customers will give a positive assessment to the company by the form of manifesting customer awareness of the companys survival (affective commitment) which in this study seems to show the highest loading value of all indicators of customer value
Empirically findings of this study support the finding by John (2008) that concludes that the success in fostering good relationship with customers is actually a beneficial thing that can bring profit for both parties The relationship created between the company and the customer will make communication better
After feeling satisfied and having created a good relationship then the customers will tell the companyrsquos advantage to others The information spread by the customer can build a good image about the company and it can bring in new clients or customers for the companyBy a good relationship not only company but also customers will get profits and advantages Benefits and advantages gained by customers also vary eg special price given by the company and get extra service for being a loyal customer
F CONCLUSION Based on the analysis and discussion in this study it obtains a general conclusion as
follows
1st Piksi International Conference on Knowledge and Sciences 2014 Page | 17
1) Customer engagement have a positive significant influence on relationship quality It means that the better the customer engagement the better the relationship quality will be and the increased sharing programs between companies and customers is a way that can be used to improve customer engagement and gain trust of customers to be better 2) Customer engagement have a positive significant influence on customer value It means that the better the customer engagement the better the customer value will be and the improvement of sharing programs between companies and customers is a way that can be used to improve customer engagement and to establish customer awareness of the companiesrsquo survival company (affective commitment) And 3) Relationship quality have a positive significant influence on customer value it means that the better the relationship quality the better the customer value and establishing trust of the customer is a way to improve the quality of relationships and increase customer awareness of companies survival (affective commitment)
This study has limitations that is the study results can not be generalized beyond the sample of the study because the respondents used is only limited to customers of PT Siba Courier Indonesia representing Semarang and Jakarta city Thus to conduct similar study involving all customers of PT Siba Courier Indonesia spreading in many cities around Indonesia still need to be considered
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exploratory analysis Journal of Business Research xxx (2011) xxxndashxxx Cateora Philip R Graham John L 2007 Pemasaran Internasional 13th Edition Jakarta Salemba
Empat Chan S 2003 Relationship Marketing Inovasi Pemasaran yang Membuat Pelanggan Bertekuk
Lutut Jakarta Penerbit PT Gramedia Pustaka Utama Copulsky J R and M J Wolf 1990 Relationship Marketing Positioning for the Future The
Journal of Business Strategy Fandy Tjiptono 2005 Pemasaran Jasa 1st Edition Malang Bayu Media Publishing Fuad Masrsquoud 2004 Survai Diagnosis Organisasional Konsep dan Aplikasi Semarang Diponegoro
University Press Groumlnroos C 1994 ldquoFrom Marketing Mix to Relationship Marketing Towards a Paradigm Shift in
Marketingrdquo Management Decision Vol 32 No 2 pp 4-20 Hollebeek LD 2009 Demystifying Customer Engagement Toward the Development of a
Conceptual Model AMZNAC 2009 1-9 Imam Ghozali 2006 Structural Equation Modeling Metode Alternatif denganPLS (Kedua ed)
Semarang Diponegoro University Press Kotler Philip amp Keller Kevin Lane 2009 Manajemen Pemasaran Edisi 13 Jilid 2 Jakarta PT
Indeks Kotler Philip 2007 Manajemen Pemasaran Analisis Perencanaan Pengendalian Prentice Hall
Edisi Bahasa Indonesia Jakarta Salemba Empat Kumar V Lerzan A Bas D Rajkumar V Thorsten W dan Sebastian T 2010 Undervalued or
Overvalued Customers Capturing Total Customer engagement Value Journal of Service Research 13(3) 297-310
MacInnis dan Mello Jefrey A 2001 StrategicHuman Resources Management International Edition South Western Publishing Ohio
Mowen John C dan Minor M 2002 Perilaku Konsumen Jilid 1 Edisi Kelima (terjemahan) Jakarta Erlangga
Nammir Darman Sulaiman Sadiq Bayar Mohamed Rasheed Marane Aree Mohammed Ali 2012 Determine the Role of Customer engagement on Relationship Quality and Relationship Performance European Journal of Business and Management wwwiisteorgISSN 2222-1905 (Paper) ISSN 2222-2839 (Online) Vol 4 No11 2012
Peter Paul J and Olson Jerry C 2002Perilaku Konsumen dan StrategiPemasaran Edisi ke Empat (Terjemahan) Jakarta Penerbit Erlangga
1st Piksi International Conference on Knowledge and Sciences 2014 Page | 18
Rustono 2010 Faktor-faktor yang Mempengaruhi Implementasi Customer Relationship Mangement (CRM) untuk Meningkatkan Loyalitas PelangganRagamJurnal Pengembangan Humaniora Vol 10 No 3 Desember 2010 153-160
Ryals L and S Knox 2001 ldquoCross-Functional Issue in the Implementation of Relationship Marketing Through Customer relationship Managementrdquo European Management Journal Vol 19 No 5 pp 534-542
Setiadi J Nugroho 2005 Perilaku Konsumen Jakarta Kencana Sugiyono 2008 Metode Penelitian Kuantitatif Kualitatif dan RampD Bandung Alfabeta Tjahyadi RA 2010Membangun Hubungan Jangka Panjang Pelanggan Melalui Relationship
Marketing httpmajourmaranathaeduindexphpjurnal-manajemenarticleview178 Vivek SD 2011 A Scale Of Consumer Engagement Disertasi Department of Management and
Marketing in the Graduate School of The University of Alabama Yahya Y 2008 Pengaruh Customer Relationship Management (CRM) dalam Meningkatkan loyalitas
Pelanggan httpfebudiluhuracidwp-contentuploads201105Pengaruh-Customer-Relationship-Management-Dalam-Meningkatka-Loyalitas-Pelanggan-Yohanes-Yahyapdf
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1st Piksi International Conference on Knowledge and Sciences 2014 Page | 9
THE ROLE OF DYNAMIC MODEL OF CUSTOMER ENGAGEMENT TOWARD CUSTOMER VALUE
Ardian Adhiatma
M A Irfan Rahmana Dept of Management Faculty of Economics UNISSULA Semarang Indonesia
E-mail ardianunissulaacid irfanrahmanayahoocom
ABSTRACT The added value of the company at this time can not always be built only through customer satisfaction but more to factors such as communication coaching and sharing of the company as stated in the customer engagement The purpose of this study is to know the role of dynamic models of customer engagement toward customer value Explanatory research is conducted on 50 owners managers and authorized personnel in corporate decision The sampling used is purposive sampling Furthermore there are three variables involved in this study those are customer engagement relationship quality and customer value The data of these three variables is obtained from questionnaires Partial least squares analysis with smart PLS 20 is used to determine the correlation within variables Customer engagement shows a positive results and significant influence to customer value either directly or indirectly through the relationship quality in which the influence of indirect coefficient (0499) is higher than the direct coefficient (0491) So it can be concluded that customer engagement has a role in improving customer value through relationship quality
Keywords customer engagement relationship quality customer value
1st Piksi International Conference on Knowledge and Sciences 2014 Page | 10
A INTRODUCTION Nowadays Challenges in the business field have become increasingly tight and
complicated because the presence of dynamical complexities in the market values in which the needs and demands of customers as main stakeholders have changed massively The change of customers condition in demand occur because the presences of information and choices have grown rapidly Not only self-needs experiencing a change but also the ways customers access the needs also change from time to time In the past customer satisfactions were mostly determined by the quality of productsservices pricing and after-sales service Briefly its only three aspects that got too much attention marketers only focused in improving the quality of products pressing price efficiency to be affordable and opening outlets of after sales service Yet in the present day these aspects are considered not meet expectations customers want more of these aspects as a prerequisite for their satisfaction In conclusion it means that the needs of customers expectations has changed so that the programs and approaches to satisfy customers should also be conducted (Rustono 2010)
The phenomena as mentioned above also occur in courier Industries The rapid competition of courier industries in Indonesia is not only caused by globalization but also customers awareness of price and high demands The rapid growth of communication and technology also contribute to the increase of competition intensity since it gives customers access to more information about the wide range of products or services offered These conditions lead customers to have more choices in spending their money
The added value of the company at this time can not always be built only through customer satisfaction but also more to other factors such as communication coaching and sharing of the company as stated in the customer engagement Customer engagement is the peak of the companys relationship with customers to survive and thrive to launch new products to pay more attention into competitor products to sell more products from competitors Besides that the companies also have to implement Customer Relationship Management whereby customer engagement is one of its components At the level of customer engagement relationship built has already been a combination of rational and emotional aspects The quality of this relationship has reached the level of the inner closeness and long-term dimension (Shevlin 2011 in Vivek 2011)
The concept of customer engagement has also been frequently considered as a potential superior strength to predict and to explain the context of the service retention and customer loyalty (Bowden 2009 in Hollebeek 2009) Furthermore Customer engagement is a promising new concept and expected to exceed the contribution given by traditional relational construction including perceived quality customer engagement and satisfaction in explaining and predicting customer value (Hollebeek 2009) Customer value is defined as the emotional bond that exists between customers and manufacturers because the customers use the products and services of the company and then find that the product or service give them additional value (Tjiptono 2005)
The study by Hollebeek (2009) concludes that the customers engagement improve loyalty satisfaction empowerment connection emotional bonding trust and commitment Furthermore Kumar et al (2010) emphasizes that customers can be involved in creating value for the company in various ways first the customer lifetime value (customer buying behavior) second the customer referrals value (related to referral incentives of new customers) third customer influence value (related to customers behavior to influence other customers which increases the acquisition retention and share of wallet through communication among customers and existing prospects) and fourth is the customer knowledge value (surplus for the company with feedback from customers) Customer engagemet value (CEV) provides a comprehensive framework that can ultimately lead to more efficient marketing strategies that enable a higher long-term contribution to customers The study by Vivek (2011) proves that customers engagement in turn can positively influence the companys relationship with customers and raises good faith and intention to do business with the company
The capability of Customer engagement in predicting customer value has been adopted as a marketing strategy by PT Siba Courier Indonesia This strategy is implemented because until this time if it is compared with its competitors PT Siba Courier Indonesia is far behind from their competitors in terms of the availability of fleet infrastructure and age In the future PT Siba Courier Indonesia is predicted to be abandoned by its customers if only rely on the availability of
1st Piksi International Conference on Knowledge and Sciences 2014 Page | 11
limited facilities and infrastructure The fact that the customers of PT Siba Courier Indonesia both in Jakarta and Semarang are still loyal to use the services of this company and even if they keep patient waiting queue to obtain service because the company have overload in order delivery If in general to improve the competitiveness and to maintain the survival of the company efforts are made through internal factors (improvement of service quality provision of infrastructure and facilities services technological advances etc) in this study exactly at PT Siba Courier Indonesia the related cases are not found Therefore it is interesting to do a more focused study on the role of dynamic models of customer engagement toward customer value in the PT Siba Courier Indonesia
B LITERATURE REVIEW
Customer Engagement Customer engagement (CE) is the intensity of customer participation by representatives
of the organization and through other customers in the process of collaborative knowledge exchange (Wagner and Majchrzak 200720) in Vivek (2011) Engagement refers to customersrsquo perception toward the importance or personal relevance of objects events and activities In this case Customers will acquire that a certain product has a personal relevance and relationship with them Relationship quality
The relationship quality or connections is represented through real-image of relationship and individual experience of each party in the relationship A subjective connection is obtained through positive passion energy matter and togetherness (Quinn and Dutton 2005 Heaphy amp Dutton 2008 in Vivek 2011) in which Two people involved in the connection and active participation (Heaphy and Dutton Vivek 2008267 in 2011)
In this study connection is defined as a positive emotional relationship that customers have a sense of belonging to the companies The quality of relationship construction is based on the amount of time spent in the workplace employees are significantly influenced by their relationships formed in the workplace so the connection significantly influences the function of the organization Customer value
The concept of customer value (CV) by Kotler and Keller (2009 14) is the combination of quality service price of products or services Furthermore Customer value is the dispute between the amount of value for customers and the total cost of customers and the amount of value for customers are customers expected profit of certain goods or services
According to Best in (Sumarwan et al 2010 30) the customer value is a benefit or profit obtained by customers lessened by the cost of the purchase Based on this concept customer value is derived from the economic customer and emotional benefits Economic Benefit is obtained from surplus of price and cost but not the cost of purchase which includes acquisition ownership usage maintenance repairment and disposal costs Customers Benefit is derived from the product appearance service and reputation Emotional Benefit is the overplus of the product to meet the emotional needs of the customer associated with psychological needs types of customers personality and customer personal value
C RESEARCH METHOD
The population of this study is all customers of PT Siba Courier Indonesia totaling 40 companies spread over two cities Semarang and Jakarta Because of limited number of population the total population is all designated as sample or census research Moreover it is also with the consideration that using total population as a sample will get a more representative description and minimize the error rates so that the data obtained will be close the real value The sample proposed is the companies which at least for three years have actively used services of PT Siba Courier Indonesia Then from each company it is selected two people from the owner and the manager or the other person who has the authority to make decision (the decision maker)
The data collection method is purposive sampling and the analysis techniques is performed by Partial Least Square and Sobel Test
Table 1
1st Piksi International Conference on Knowledge and Sciences 2014 Page | 12
Research Variables and Indicators No Variables Indicators Shape
1 Customer engagement is the level of customers attention to the company
Sharing (CE1)
Likert Scale 1-5
Learning (CE2) Advocating (CE3) Socialization (CE4) Co-developing (CE5)
2 Relationship quality is quality of the relationship created between customer and companies
Trust (RQ1) Commitment (RQ2) Satisfaction (RQ3)
3
Customer value is the matched value perceived by customers on the services prices of the products quality received by them
Connection with Company (CV1) Goodwill (CV2) Word of Mouth (CV3) Affective Commitment (CV4) Intent to do Business (CV5)
Data Analysis
PLS (Partial Least Square) is used to examine and test the hypothesis proposed PLS has advantages that lsquoit involves no assumptions about the population or scale of measurement (Fornell amp Bookstein 1982) and consequently it works without distributional assumptions and by nominal ordinal and interval scaled variables However one has to bear in mind that the PLS like any statistical technique also requires certain assumptions to be fulfilled Apart from the standard ones (ie the classical Gaussian linear ordinary least squares) regression models (see eg Gujarati 1995) the most important predictor of the assumption is the specification (Chin amp Newsted 1999)
D FINDINGS Based on data analysis of the study it can be explained the analysis of partial least
squares (PLS) as follows Inner PLS model results
The indicators of customer engagement consist of sharing (CE1) learning (CE2) advocating (CE3) socialization (CE4) and co-developing (CE5) The outline of the PLS model for the indicators proposed is shown in Table 2
Table 2 Test Results of Validity and Reliability of Customer Engagement Indicator Variables
No Indicator Test Validity Composite Reliability Loading T-Statistic Criteria
1 CE 1 0919 9438 valid
0876 2 CE 2 0753 5330 valid 3 CE 3 0711 4915 valid 4 CE 4 0851 7639 valid 5 CE 5 0854 6314 valid
Sources Primary data processed in 2014
Table 2 is the result of convergent validity test 5 indicators of customer engagement have loading factor value more than 05 by the T statistical value of all indicators greater than T Table by 196 so that all indicators of customer engagement can be said to be valid The order of the strongest to the weakest indicator is CE1 (sharing) CE5 (co-developing) CE4
1st Piksi International Conference on Knowledge and Sciences 2014 Page | 13
(socialization) CE2 (learning) and CE3 (advocating) Based on the composite reliability test of indicator measuring the construct it shows a satisfactory results in the amount of 0876 meaning that the construct of customer engagement can provide relatively similar results when it is measured again by the same subjects
The indicator of Relationship quality consists of three indicators namely trust (RQ1) commitment (RQ2) and satisfaction (RQ3) The results of the PLS model for the outer indicators is shown in Table 3 below
Table 3
Test Results of Validity and Reliability of Relationship Quality Indicator Variables
No Indicator Test Validity Composite Reliability Loading T-Statistic Criteria
1 RQ1 0822 4959 valid 0731 2 RQ2 0812 5508 valid
3 RQ3 0785 5318 valid
Sources Primary data were processed in 2014
Table 3 is the result of convergent validity test 3 indicators of relationship quality has a loading factor values more than 05 and the value of the T statistic is higher than the T table by 196 so that all indicators of relationship quality can be said to be valid The order of the strongest to the weakest indicator is RQ1 RQ2 and RQ3 Based on the composite reliability test of the indicators measuring construction it showes a satisfactory results in the amount of 0731 meaning that the relationship quality constructs can provide relatively similar results if it is measured again by the same subjects
The indicator of Customer value consists of 5 indicators the connection with the commpany (CV1) goodwill (CV2) word of mouth (CV3) affective commitment (CV4) and intent to do business (CV5) The result of outer model is in Table 4
Table 4 Test Results of Validity and Reliability of Customer value Indicator Variables
No Indicator Test Validity Composite Reliability Loading T-Statistic Criteria
1 CV1 0 815 9 382 valid
0860 2 CV2 0 752 6 211 valid 3 CV3 0 712 4 022 valid 4 CV4 0 886 7 349 valid 5 CV5 0 837 7 649 valid
Table 4 is the result of convergent validity test 5 indicators of customer value has a
loading factor value more than 05 and the value of statistical Tgt T Table by 196 so that all indicators of customer value can be said to be valid The order of the strongest to the weakest indicator is CV4 CV5 CV1 CV2 and CV3 Based on the composite reliability test of indicators measuring the block construct it shows a satisfactory results in the amount of 0860 meaning that the construct of customer value can provide relatively similar results if it is measured again by the same subjects Inner PLS model results
Inner models describes the relationship among latent variables based on substantive theory The results of the bootstrapping output graphs display the relationship among variables such as customer engagement relationship quality and customer value as shown in Figure 2
1st Piksi International Conference on Knowledge and Sciences 2014 Page | 14
Based on calculations in Figure 2 It is known that the direct influence of customer engagement on customer value is equal to 0491 with the indirect influence of 0984 x 0507 = 0499 It means that the indirect influence is higher than the direct Thus the relationship quality variable is the path of the relationship between the customer engagement and customer value Briefly it means that customer engagement can directly improve customer value by trying to increase the relationship quality first
Sources Primary data processed 2014 Figure 1
The relationship Model between the Customer Engagement Relationship quality and Customer value of PT Siba Courier Indonesia
Figure 1 also shows the magnitude of the determination coefficient The coefficient of determination is used to recognize how significant the influence of exogenous variables toward endogenous the higher the value of the coefficient of determination the higher the influence of exogenous variables on endogenous will be R-square value generated from the relationship between customer engagement with the relationship quality is 0969 meaning that the variation of relationship quality which can be explained by customer engagement is 969 while the remaining 31 is obtained from other variables Then R-square value of the relationship model between customer engagement relationship quality and customer value is 0988 it means that the variation of customer value that can be explained by the relationship quality and customer engagement is 988 while the remaining 12 are determined by other variables
Then the hypothesis test is performed by looking at the value of t count if tcount is higher than ttable (alpha 5 = 196) then the alternative hypothesis (H a) is accepted and H 0 is rejected and so that for the opposite Based on the PLS test the results of testing the relationship among variables can be seen in Table 9 and Figure 3
Table 5 Results of Inner Weight
No The relationship among variables Original Sample (O) T Statistics (| O Sterr |) Criteria
1 CE -gt CV 0491 2312 Significant 2 CE -gt RQ 0984 110053 Significant 3 RQ -gt CV 0507 2383 Significant
Sources Primary data processed 2014
1st Piksi International Conference on Knowledge and Sciences 2014 Page | 15
1 The first hypothesis the customer engagement significantly influences the relationship quality Based on the PLS calculations result in Table 8 testing the first hypothesis about the
influence of customer engagement on relationship quality it is obtained the value of the estimated coefficient (β) of 0984 with t statistic value of 110053 This result is much higher than t-table value which is only 196 Then it can be concluded that there is a positive significant influence on the customer engagement variable toward the relationship quality Thus the first hypothesis is accepted
2 The second hypothesis the customer engagement significantly influences the customer value Based on the PLS calculations result in Table 9 testing the second hypothesis about the
influence of customer engagement toward customer value it is obtained the value of the estimated coefficient (β) of 0491 with t statistic value of 2312 This result is higher than t-table value which is only 196 So it can be concluded that there is a positive significant influence of the customer engagement variable toward customer value Thus the second hypothesis is accepted
3 The third hypothesis relationship quality significantly influence customer value Based on the PLS calculations result in Table 9 testing the third hypothesis about the
influence of relationship quality on customer value it is obtained the value of the estimated coefficient (β) of 0507 with t statistic value of 2383 This result is higher than t-table value which is only 196 So it can be concluded that there is a positive significant influence of the relationship quality variable on customer value Thus the third hypothesis is accepted Sobel Test Results
Sobel test is conducted by testing the strength of the indirect influence of independent variables (customer engagement) toward dependent variable (customer value) through intervening variable (relationship quality) This test is done by Online Sobel Test Calculator for the Significance of Mediation by entering the regression coefficient and standard error values of the customer engagement variables to the relationship quality and the regression coefficient and standard error values of the relationship quality variable to customer value in which it gets the result as follows
Figure 4
Sobel Test Results Sobel test shown in Figure 4 shows the Sobel test statistic value of 23797 with a one-
side significance value of 0009 because the significance value is lt005 therefore it can be said that the relationship quality is the intervening variable of the correlation of customer engagement and customer value
E DISCUSSION In this study Customer engagement positively influences relationship quality it means
that the better the customer engagement the better the relationship quality between the customer and the company By involving customers such as Inviting them to share about the things to improve the performance of the company or promote cooperation between companies and customers (share) inviting customers to know more about the company (learning) motivating customers to inform others about the companys products or services (advocating) motivating customers to promote products services of the company (socialization) and motivating customers to contribute ideas that might contribute to the improvement of performance and service of the companies (co-developing) then it will be able to create a good quality relationships between the companies and customers
1st Piksi International Conference on Knowledge and Sciences 2014 Page | 16
This is in line with the findings by Saks (2006) which states that the employee engagement has been implemented as a means to explore and explain the organizational commitment and behaviors of the members and also applied as a predictor of customer ratings toward the companies Furthermore the finding of the study is also in accordance with the opinion of Salanova et al (2005) that engagement has also been recognized as a way to improve morale cohesion and psychological relationship between the customer and the company or organization
The quality of a good relationship is manifested by the growth of customer trust the presence of customer commitment to always use the companys services and customer satisfaction with the overall service provided by the company
Customer engagement in this study positively contribute to customer value the better the company does customer engagement efforts it will contribute to higher customer value Involving customers such as inviting them to share about the things to improve the performance of the company or promote cooperation between companies and customers (share) inviting customers to know more about the company (learning) motivating the customer to inform others about product and service of companies (advocating) motivating customers to promote products services company (socialization) and motivating customers to contribute ideas to improve the performance and service companies (co-developing) will be able to create high customer value
The studys findings are in line with the study conducted by Li and Dant in Vivek (2011) which concludes that the intensity of customer engagement will be positively related to the value received by customers By the time customers are treated very well and considered as part of the company it will raise the principle of reciprocity in which the customer will give the good attitude as good as what they have received by the company (Bagozzidalam Vivek 2011)
Companies Interaction to customers via initiative engagement strategies will make the reciprocity norm appear to customersrsquo engagement If the company successfully engage customers customers will recognize the benefits received and give return values to indicate behavioral intentions In the return of value received customers will have a good faith and affective commitment to the organization and may be willing to develop a strong relationship with the organization
Moreover in this study relationship quality give positive influence on customer value The better relationship quality the better the customer value will be It means that relationship quality is one of the important factors to increase customer value Relationship quality is needed to drive steer cultivate and maintain customer behavior towards the achievement of better corporate performance
Relationship quality in this study also serves as a mediator of the influence of customer engagement toward customer value Customer value will be stronger with the role of relationship quality in it Starting from involving customers by sharing it will create a good relationship between the company and customers Then One of the good form of relationship is the emergence of self-confidence of the customers toward the the company Based on these good relationships created customers will give a positive assessment to the company by the form of manifesting customer awareness of the companys survival (affective commitment) which in this study seems to show the highest loading value of all indicators of customer value
Empirically findings of this study support the finding by John (2008) that concludes that the success in fostering good relationship with customers is actually a beneficial thing that can bring profit for both parties The relationship created between the company and the customer will make communication better
After feeling satisfied and having created a good relationship then the customers will tell the companyrsquos advantage to others The information spread by the customer can build a good image about the company and it can bring in new clients or customers for the companyBy a good relationship not only company but also customers will get profits and advantages Benefits and advantages gained by customers also vary eg special price given by the company and get extra service for being a loyal customer
F CONCLUSION Based on the analysis and discussion in this study it obtains a general conclusion as
follows
1st Piksi International Conference on Knowledge and Sciences 2014 Page | 17
1) Customer engagement have a positive significant influence on relationship quality It means that the better the customer engagement the better the relationship quality will be and the increased sharing programs between companies and customers is a way that can be used to improve customer engagement and gain trust of customers to be better 2) Customer engagement have a positive significant influence on customer value It means that the better the customer engagement the better the customer value will be and the improvement of sharing programs between companies and customers is a way that can be used to improve customer engagement and to establish customer awareness of the companiesrsquo survival company (affective commitment) And 3) Relationship quality have a positive significant influence on customer value it means that the better the relationship quality the better the customer value and establishing trust of the customer is a way to improve the quality of relationships and increase customer awareness of companies survival (affective commitment)
This study has limitations that is the study results can not be generalized beyond the sample of the study because the respondents used is only limited to customers of PT Siba Courier Indonesia representing Semarang and Jakarta city Thus to conduct similar study involving all customers of PT Siba Courier Indonesia spreading in many cities around Indonesia still need to be considered
BIBLIOGRAPHY Brodie JR Ilic A Hollebeek L 2011 Consumer engagement in a virtual brand community An
exploratory analysis Journal of Business Research xxx (2011) xxxndashxxx Cateora Philip R Graham John L 2007 Pemasaran Internasional 13th Edition Jakarta Salemba
Empat Chan S 2003 Relationship Marketing Inovasi Pemasaran yang Membuat Pelanggan Bertekuk
Lutut Jakarta Penerbit PT Gramedia Pustaka Utama Copulsky J R and M J Wolf 1990 Relationship Marketing Positioning for the Future The
Journal of Business Strategy Fandy Tjiptono 2005 Pemasaran Jasa 1st Edition Malang Bayu Media Publishing Fuad Masrsquoud 2004 Survai Diagnosis Organisasional Konsep dan Aplikasi Semarang Diponegoro
University Press Groumlnroos C 1994 ldquoFrom Marketing Mix to Relationship Marketing Towards a Paradigm Shift in
Marketingrdquo Management Decision Vol 32 No 2 pp 4-20 Hollebeek LD 2009 Demystifying Customer Engagement Toward the Development of a
Conceptual Model AMZNAC 2009 1-9 Imam Ghozali 2006 Structural Equation Modeling Metode Alternatif denganPLS (Kedua ed)
Semarang Diponegoro University Press Kotler Philip amp Keller Kevin Lane 2009 Manajemen Pemasaran Edisi 13 Jilid 2 Jakarta PT
Indeks Kotler Philip 2007 Manajemen Pemasaran Analisis Perencanaan Pengendalian Prentice Hall
Edisi Bahasa Indonesia Jakarta Salemba Empat Kumar V Lerzan A Bas D Rajkumar V Thorsten W dan Sebastian T 2010 Undervalued or
Overvalued Customers Capturing Total Customer engagement Value Journal of Service Research 13(3) 297-310
MacInnis dan Mello Jefrey A 2001 StrategicHuman Resources Management International Edition South Western Publishing Ohio
Mowen John C dan Minor M 2002 Perilaku Konsumen Jilid 1 Edisi Kelima (terjemahan) Jakarta Erlangga
Nammir Darman Sulaiman Sadiq Bayar Mohamed Rasheed Marane Aree Mohammed Ali 2012 Determine the Role of Customer engagement on Relationship Quality and Relationship Performance European Journal of Business and Management wwwiisteorgISSN 2222-1905 (Paper) ISSN 2222-2839 (Online) Vol 4 No11 2012
Peter Paul J and Olson Jerry C 2002Perilaku Konsumen dan StrategiPemasaran Edisi ke Empat (Terjemahan) Jakarta Penerbit Erlangga
1st Piksi International Conference on Knowledge and Sciences 2014 Page | 18
Rustono 2010 Faktor-faktor yang Mempengaruhi Implementasi Customer Relationship Mangement (CRM) untuk Meningkatkan Loyalitas PelangganRagamJurnal Pengembangan Humaniora Vol 10 No 3 Desember 2010 153-160
Ryals L and S Knox 2001 ldquoCross-Functional Issue in the Implementation of Relationship Marketing Through Customer relationship Managementrdquo European Management Journal Vol 19 No 5 pp 534-542
Setiadi J Nugroho 2005 Perilaku Konsumen Jakarta Kencana Sugiyono 2008 Metode Penelitian Kuantitatif Kualitatif dan RampD Bandung Alfabeta Tjahyadi RA 2010Membangun Hubungan Jangka Panjang Pelanggan Melalui Relationship
Marketing httpmajourmaranathaeduindexphpjurnal-manajemenarticleview178 Vivek SD 2011 A Scale Of Consumer Engagement Disertasi Department of Management and
Marketing in the Graduate School of The University of Alabama Yahya Y 2008 Pengaruh Customer Relationship Management (CRM) dalam Meningkatkan loyalitas
Pelanggan httpfebudiluhuracidwp-contentuploads201105Pengaruh-Customer-Relationship-Management-Dalam-Meningkatka-Loyalitas-Pelanggan-Yohanes-Yahyapdf
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THE ANALYSIS OF FINANCIAL CHARACTERISTIC AND INDEX OF
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Piksi Ganesha AND CHAMCTERISTICS or
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1st Piksi International Conference on Knowledge and Sciences 2014 Page | 9
THE ROLE OF DYNAMIC MODEL OF CUSTOMER ENGAGEMENT TOWARD CUSTOMER VALUE
Ardian Adhiatma
M A Irfan Rahmana Dept of Management Faculty of Economics UNISSULA Semarang Indonesia
E-mail ardianunissulaacid irfanrahmanayahoocom
ABSTRACT The added value of the company at this time can not always be built only through customer satisfaction but more to factors such as communication coaching and sharing of the company as stated in the customer engagement The purpose of this study is to know the role of dynamic models of customer engagement toward customer value Explanatory research is conducted on 50 owners managers and authorized personnel in corporate decision The sampling used is purposive sampling Furthermore there are three variables involved in this study those are customer engagement relationship quality and customer value The data of these three variables is obtained from questionnaires Partial least squares analysis with smart PLS 20 is used to determine the correlation within variables Customer engagement shows a positive results and significant influence to customer value either directly or indirectly through the relationship quality in which the influence of indirect coefficient (0499) is higher than the direct coefficient (0491) So it can be concluded that customer engagement has a role in improving customer value through relationship quality
Keywords customer engagement relationship quality customer value
1st Piksi International Conference on Knowledge and Sciences 2014 Page | 10
A INTRODUCTION Nowadays Challenges in the business field have become increasingly tight and
complicated because the presence of dynamical complexities in the market values in which the needs and demands of customers as main stakeholders have changed massively The change of customers condition in demand occur because the presences of information and choices have grown rapidly Not only self-needs experiencing a change but also the ways customers access the needs also change from time to time In the past customer satisfactions were mostly determined by the quality of productsservices pricing and after-sales service Briefly its only three aspects that got too much attention marketers only focused in improving the quality of products pressing price efficiency to be affordable and opening outlets of after sales service Yet in the present day these aspects are considered not meet expectations customers want more of these aspects as a prerequisite for their satisfaction In conclusion it means that the needs of customers expectations has changed so that the programs and approaches to satisfy customers should also be conducted (Rustono 2010)
The phenomena as mentioned above also occur in courier Industries The rapid competition of courier industries in Indonesia is not only caused by globalization but also customers awareness of price and high demands The rapid growth of communication and technology also contribute to the increase of competition intensity since it gives customers access to more information about the wide range of products or services offered These conditions lead customers to have more choices in spending their money
The added value of the company at this time can not always be built only through customer satisfaction but also more to other factors such as communication coaching and sharing of the company as stated in the customer engagement Customer engagement is the peak of the companys relationship with customers to survive and thrive to launch new products to pay more attention into competitor products to sell more products from competitors Besides that the companies also have to implement Customer Relationship Management whereby customer engagement is one of its components At the level of customer engagement relationship built has already been a combination of rational and emotional aspects The quality of this relationship has reached the level of the inner closeness and long-term dimension (Shevlin 2011 in Vivek 2011)
The concept of customer engagement has also been frequently considered as a potential superior strength to predict and to explain the context of the service retention and customer loyalty (Bowden 2009 in Hollebeek 2009) Furthermore Customer engagement is a promising new concept and expected to exceed the contribution given by traditional relational construction including perceived quality customer engagement and satisfaction in explaining and predicting customer value (Hollebeek 2009) Customer value is defined as the emotional bond that exists between customers and manufacturers because the customers use the products and services of the company and then find that the product or service give them additional value (Tjiptono 2005)
The study by Hollebeek (2009) concludes that the customers engagement improve loyalty satisfaction empowerment connection emotional bonding trust and commitment Furthermore Kumar et al (2010) emphasizes that customers can be involved in creating value for the company in various ways first the customer lifetime value (customer buying behavior) second the customer referrals value (related to referral incentives of new customers) third customer influence value (related to customers behavior to influence other customers which increases the acquisition retention and share of wallet through communication among customers and existing prospects) and fourth is the customer knowledge value (surplus for the company with feedback from customers) Customer engagemet value (CEV) provides a comprehensive framework that can ultimately lead to more efficient marketing strategies that enable a higher long-term contribution to customers The study by Vivek (2011) proves that customers engagement in turn can positively influence the companys relationship with customers and raises good faith and intention to do business with the company
The capability of Customer engagement in predicting customer value has been adopted as a marketing strategy by PT Siba Courier Indonesia This strategy is implemented because until this time if it is compared with its competitors PT Siba Courier Indonesia is far behind from their competitors in terms of the availability of fleet infrastructure and age In the future PT Siba Courier Indonesia is predicted to be abandoned by its customers if only rely on the availability of
1st Piksi International Conference on Knowledge and Sciences 2014 Page | 11
limited facilities and infrastructure The fact that the customers of PT Siba Courier Indonesia both in Jakarta and Semarang are still loyal to use the services of this company and even if they keep patient waiting queue to obtain service because the company have overload in order delivery If in general to improve the competitiveness and to maintain the survival of the company efforts are made through internal factors (improvement of service quality provision of infrastructure and facilities services technological advances etc) in this study exactly at PT Siba Courier Indonesia the related cases are not found Therefore it is interesting to do a more focused study on the role of dynamic models of customer engagement toward customer value in the PT Siba Courier Indonesia
B LITERATURE REVIEW
Customer Engagement Customer engagement (CE) is the intensity of customer participation by representatives
of the organization and through other customers in the process of collaborative knowledge exchange (Wagner and Majchrzak 200720) in Vivek (2011) Engagement refers to customersrsquo perception toward the importance or personal relevance of objects events and activities In this case Customers will acquire that a certain product has a personal relevance and relationship with them Relationship quality
The relationship quality or connections is represented through real-image of relationship and individual experience of each party in the relationship A subjective connection is obtained through positive passion energy matter and togetherness (Quinn and Dutton 2005 Heaphy amp Dutton 2008 in Vivek 2011) in which Two people involved in the connection and active participation (Heaphy and Dutton Vivek 2008267 in 2011)
In this study connection is defined as a positive emotional relationship that customers have a sense of belonging to the companies The quality of relationship construction is based on the amount of time spent in the workplace employees are significantly influenced by their relationships formed in the workplace so the connection significantly influences the function of the organization Customer value
The concept of customer value (CV) by Kotler and Keller (2009 14) is the combination of quality service price of products or services Furthermore Customer value is the dispute between the amount of value for customers and the total cost of customers and the amount of value for customers are customers expected profit of certain goods or services
According to Best in (Sumarwan et al 2010 30) the customer value is a benefit or profit obtained by customers lessened by the cost of the purchase Based on this concept customer value is derived from the economic customer and emotional benefits Economic Benefit is obtained from surplus of price and cost but not the cost of purchase which includes acquisition ownership usage maintenance repairment and disposal costs Customers Benefit is derived from the product appearance service and reputation Emotional Benefit is the overplus of the product to meet the emotional needs of the customer associated with psychological needs types of customers personality and customer personal value
C RESEARCH METHOD
The population of this study is all customers of PT Siba Courier Indonesia totaling 40 companies spread over two cities Semarang and Jakarta Because of limited number of population the total population is all designated as sample or census research Moreover it is also with the consideration that using total population as a sample will get a more representative description and minimize the error rates so that the data obtained will be close the real value The sample proposed is the companies which at least for three years have actively used services of PT Siba Courier Indonesia Then from each company it is selected two people from the owner and the manager or the other person who has the authority to make decision (the decision maker)
The data collection method is purposive sampling and the analysis techniques is performed by Partial Least Square and Sobel Test
Table 1
1st Piksi International Conference on Knowledge and Sciences 2014 Page | 12
Research Variables and Indicators No Variables Indicators Shape
1 Customer engagement is the level of customers attention to the company
Sharing (CE1)
Likert Scale 1-5
Learning (CE2) Advocating (CE3) Socialization (CE4) Co-developing (CE5)
2 Relationship quality is quality of the relationship created between customer and companies
Trust (RQ1) Commitment (RQ2) Satisfaction (RQ3)
3
Customer value is the matched value perceived by customers on the services prices of the products quality received by them
Connection with Company (CV1) Goodwill (CV2) Word of Mouth (CV3) Affective Commitment (CV4) Intent to do Business (CV5)
Data Analysis
PLS (Partial Least Square) is used to examine and test the hypothesis proposed PLS has advantages that lsquoit involves no assumptions about the population or scale of measurement (Fornell amp Bookstein 1982) and consequently it works without distributional assumptions and by nominal ordinal and interval scaled variables However one has to bear in mind that the PLS like any statistical technique also requires certain assumptions to be fulfilled Apart from the standard ones (ie the classical Gaussian linear ordinary least squares) regression models (see eg Gujarati 1995) the most important predictor of the assumption is the specification (Chin amp Newsted 1999)
D FINDINGS Based on data analysis of the study it can be explained the analysis of partial least
squares (PLS) as follows Inner PLS model results
The indicators of customer engagement consist of sharing (CE1) learning (CE2) advocating (CE3) socialization (CE4) and co-developing (CE5) The outline of the PLS model for the indicators proposed is shown in Table 2
Table 2 Test Results of Validity and Reliability of Customer Engagement Indicator Variables
No Indicator Test Validity Composite Reliability Loading T-Statistic Criteria
1 CE 1 0919 9438 valid
0876 2 CE 2 0753 5330 valid 3 CE 3 0711 4915 valid 4 CE 4 0851 7639 valid 5 CE 5 0854 6314 valid
Sources Primary data processed in 2014
Table 2 is the result of convergent validity test 5 indicators of customer engagement have loading factor value more than 05 by the T statistical value of all indicators greater than T Table by 196 so that all indicators of customer engagement can be said to be valid The order of the strongest to the weakest indicator is CE1 (sharing) CE5 (co-developing) CE4
1st Piksi International Conference on Knowledge and Sciences 2014 Page | 13
(socialization) CE2 (learning) and CE3 (advocating) Based on the composite reliability test of indicator measuring the construct it shows a satisfactory results in the amount of 0876 meaning that the construct of customer engagement can provide relatively similar results when it is measured again by the same subjects
The indicator of Relationship quality consists of three indicators namely trust (RQ1) commitment (RQ2) and satisfaction (RQ3) The results of the PLS model for the outer indicators is shown in Table 3 below
Table 3
Test Results of Validity and Reliability of Relationship Quality Indicator Variables
No Indicator Test Validity Composite Reliability Loading T-Statistic Criteria
1 RQ1 0822 4959 valid 0731 2 RQ2 0812 5508 valid
3 RQ3 0785 5318 valid
Sources Primary data were processed in 2014
Table 3 is the result of convergent validity test 3 indicators of relationship quality has a loading factor values more than 05 and the value of the T statistic is higher than the T table by 196 so that all indicators of relationship quality can be said to be valid The order of the strongest to the weakest indicator is RQ1 RQ2 and RQ3 Based on the composite reliability test of the indicators measuring construction it showes a satisfactory results in the amount of 0731 meaning that the relationship quality constructs can provide relatively similar results if it is measured again by the same subjects
The indicator of Customer value consists of 5 indicators the connection with the commpany (CV1) goodwill (CV2) word of mouth (CV3) affective commitment (CV4) and intent to do business (CV5) The result of outer model is in Table 4
Table 4 Test Results of Validity and Reliability of Customer value Indicator Variables
No Indicator Test Validity Composite Reliability Loading T-Statistic Criteria
1 CV1 0 815 9 382 valid
0860 2 CV2 0 752 6 211 valid 3 CV3 0 712 4 022 valid 4 CV4 0 886 7 349 valid 5 CV5 0 837 7 649 valid
Table 4 is the result of convergent validity test 5 indicators of customer value has a
loading factor value more than 05 and the value of statistical Tgt T Table by 196 so that all indicators of customer value can be said to be valid The order of the strongest to the weakest indicator is CV4 CV5 CV1 CV2 and CV3 Based on the composite reliability test of indicators measuring the block construct it shows a satisfactory results in the amount of 0860 meaning that the construct of customer value can provide relatively similar results if it is measured again by the same subjects Inner PLS model results
Inner models describes the relationship among latent variables based on substantive theory The results of the bootstrapping output graphs display the relationship among variables such as customer engagement relationship quality and customer value as shown in Figure 2
1st Piksi International Conference on Knowledge and Sciences 2014 Page | 14
Based on calculations in Figure 2 It is known that the direct influence of customer engagement on customer value is equal to 0491 with the indirect influence of 0984 x 0507 = 0499 It means that the indirect influence is higher than the direct Thus the relationship quality variable is the path of the relationship between the customer engagement and customer value Briefly it means that customer engagement can directly improve customer value by trying to increase the relationship quality first
Sources Primary data processed 2014 Figure 1
The relationship Model between the Customer Engagement Relationship quality and Customer value of PT Siba Courier Indonesia
Figure 1 also shows the magnitude of the determination coefficient The coefficient of determination is used to recognize how significant the influence of exogenous variables toward endogenous the higher the value of the coefficient of determination the higher the influence of exogenous variables on endogenous will be R-square value generated from the relationship between customer engagement with the relationship quality is 0969 meaning that the variation of relationship quality which can be explained by customer engagement is 969 while the remaining 31 is obtained from other variables Then R-square value of the relationship model between customer engagement relationship quality and customer value is 0988 it means that the variation of customer value that can be explained by the relationship quality and customer engagement is 988 while the remaining 12 are determined by other variables
Then the hypothesis test is performed by looking at the value of t count if tcount is higher than ttable (alpha 5 = 196) then the alternative hypothesis (H a) is accepted and H 0 is rejected and so that for the opposite Based on the PLS test the results of testing the relationship among variables can be seen in Table 9 and Figure 3
Table 5 Results of Inner Weight
No The relationship among variables Original Sample (O) T Statistics (| O Sterr |) Criteria
1 CE -gt CV 0491 2312 Significant 2 CE -gt RQ 0984 110053 Significant 3 RQ -gt CV 0507 2383 Significant
Sources Primary data processed 2014
1st Piksi International Conference on Knowledge and Sciences 2014 Page | 15
1 The first hypothesis the customer engagement significantly influences the relationship quality Based on the PLS calculations result in Table 8 testing the first hypothesis about the
influence of customer engagement on relationship quality it is obtained the value of the estimated coefficient (β) of 0984 with t statistic value of 110053 This result is much higher than t-table value which is only 196 Then it can be concluded that there is a positive significant influence on the customer engagement variable toward the relationship quality Thus the first hypothesis is accepted
2 The second hypothesis the customer engagement significantly influences the customer value Based on the PLS calculations result in Table 9 testing the second hypothesis about the
influence of customer engagement toward customer value it is obtained the value of the estimated coefficient (β) of 0491 with t statistic value of 2312 This result is higher than t-table value which is only 196 So it can be concluded that there is a positive significant influence of the customer engagement variable toward customer value Thus the second hypothesis is accepted
3 The third hypothesis relationship quality significantly influence customer value Based on the PLS calculations result in Table 9 testing the third hypothesis about the
influence of relationship quality on customer value it is obtained the value of the estimated coefficient (β) of 0507 with t statistic value of 2383 This result is higher than t-table value which is only 196 So it can be concluded that there is a positive significant influence of the relationship quality variable on customer value Thus the third hypothesis is accepted Sobel Test Results
Sobel test is conducted by testing the strength of the indirect influence of independent variables (customer engagement) toward dependent variable (customer value) through intervening variable (relationship quality) This test is done by Online Sobel Test Calculator for the Significance of Mediation by entering the regression coefficient and standard error values of the customer engagement variables to the relationship quality and the regression coefficient and standard error values of the relationship quality variable to customer value in which it gets the result as follows
Figure 4
Sobel Test Results Sobel test shown in Figure 4 shows the Sobel test statistic value of 23797 with a one-
side significance value of 0009 because the significance value is lt005 therefore it can be said that the relationship quality is the intervening variable of the correlation of customer engagement and customer value
E DISCUSSION In this study Customer engagement positively influences relationship quality it means
that the better the customer engagement the better the relationship quality between the customer and the company By involving customers such as Inviting them to share about the things to improve the performance of the company or promote cooperation between companies and customers (share) inviting customers to know more about the company (learning) motivating customers to inform others about the companys products or services (advocating) motivating customers to promote products services of the company (socialization) and motivating customers to contribute ideas that might contribute to the improvement of performance and service of the companies (co-developing) then it will be able to create a good quality relationships between the companies and customers
1st Piksi International Conference on Knowledge and Sciences 2014 Page | 16
This is in line with the findings by Saks (2006) which states that the employee engagement has been implemented as a means to explore and explain the organizational commitment and behaviors of the members and also applied as a predictor of customer ratings toward the companies Furthermore the finding of the study is also in accordance with the opinion of Salanova et al (2005) that engagement has also been recognized as a way to improve morale cohesion and psychological relationship between the customer and the company or organization
The quality of a good relationship is manifested by the growth of customer trust the presence of customer commitment to always use the companys services and customer satisfaction with the overall service provided by the company
Customer engagement in this study positively contribute to customer value the better the company does customer engagement efforts it will contribute to higher customer value Involving customers such as inviting them to share about the things to improve the performance of the company or promote cooperation between companies and customers (share) inviting customers to know more about the company (learning) motivating the customer to inform others about product and service of companies (advocating) motivating customers to promote products services company (socialization) and motivating customers to contribute ideas to improve the performance and service companies (co-developing) will be able to create high customer value
The studys findings are in line with the study conducted by Li and Dant in Vivek (2011) which concludes that the intensity of customer engagement will be positively related to the value received by customers By the time customers are treated very well and considered as part of the company it will raise the principle of reciprocity in which the customer will give the good attitude as good as what they have received by the company (Bagozzidalam Vivek 2011)
Companies Interaction to customers via initiative engagement strategies will make the reciprocity norm appear to customersrsquo engagement If the company successfully engage customers customers will recognize the benefits received and give return values to indicate behavioral intentions In the return of value received customers will have a good faith and affective commitment to the organization and may be willing to develop a strong relationship with the organization
Moreover in this study relationship quality give positive influence on customer value The better relationship quality the better the customer value will be It means that relationship quality is one of the important factors to increase customer value Relationship quality is needed to drive steer cultivate and maintain customer behavior towards the achievement of better corporate performance
Relationship quality in this study also serves as a mediator of the influence of customer engagement toward customer value Customer value will be stronger with the role of relationship quality in it Starting from involving customers by sharing it will create a good relationship between the company and customers Then One of the good form of relationship is the emergence of self-confidence of the customers toward the the company Based on these good relationships created customers will give a positive assessment to the company by the form of manifesting customer awareness of the companys survival (affective commitment) which in this study seems to show the highest loading value of all indicators of customer value
Empirically findings of this study support the finding by John (2008) that concludes that the success in fostering good relationship with customers is actually a beneficial thing that can bring profit for both parties The relationship created between the company and the customer will make communication better
After feeling satisfied and having created a good relationship then the customers will tell the companyrsquos advantage to others The information spread by the customer can build a good image about the company and it can bring in new clients or customers for the companyBy a good relationship not only company but also customers will get profits and advantages Benefits and advantages gained by customers also vary eg special price given by the company and get extra service for being a loyal customer
F CONCLUSION Based on the analysis and discussion in this study it obtains a general conclusion as
follows
1st Piksi International Conference on Knowledge and Sciences 2014 Page | 17
1) Customer engagement have a positive significant influence on relationship quality It means that the better the customer engagement the better the relationship quality will be and the increased sharing programs between companies and customers is a way that can be used to improve customer engagement and gain trust of customers to be better 2) Customer engagement have a positive significant influence on customer value It means that the better the customer engagement the better the customer value will be and the improvement of sharing programs between companies and customers is a way that can be used to improve customer engagement and to establish customer awareness of the companiesrsquo survival company (affective commitment) And 3) Relationship quality have a positive significant influence on customer value it means that the better the relationship quality the better the customer value and establishing trust of the customer is a way to improve the quality of relationships and increase customer awareness of companies survival (affective commitment)
This study has limitations that is the study results can not be generalized beyond the sample of the study because the respondents used is only limited to customers of PT Siba Courier Indonesia representing Semarang and Jakarta city Thus to conduct similar study involving all customers of PT Siba Courier Indonesia spreading in many cities around Indonesia still need to be considered
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exploratory analysis Journal of Business Research xxx (2011) xxxndashxxx Cateora Philip R Graham John L 2007 Pemasaran Internasional 13th Edition Jakarta Salemba
Empat Chan S 2003 Relationship Marketing Inovasi Pemasaran yang Membuat Pelanggan Bertekuk
Lutut Jakarta Penerbit PT Gramedia Pustaka Utama Copulsky J R and M J Wolf 1990 Relationship Marketing Positioning for the Future The
Journal of Business Strategy Fandy Tjiptono 2005 Pemasaran Jasa 1st Edition Malang Bayu Media Publishing Fuad Masrsquoud 2004 Survai Diagnosis Organisasional Konsep dan Aplikasi Semarang Diponegoro
University Press Groumlnroos C 1994 ldquoFrom Marketing Mix to Relationship Marketing Towards a Paradigm Shift in
Marketingrdquo Management Decision Vol 32 No 2 pp 4-20 Hollebeek LD 2009 Demystifying Customer Engagement Toward the Development of a
Conceptual Model AMZNAC 2009 1-9 Imam Ghozali 2006 Structural Equation Modeling Metode Alternatif denganPLS (Kedua ed)
Semarang Diponegoro University Press Kotler Philip amp Keller Kevin Lane 2009 Manajemen Pemasaran Edisi 13 Jilid 2 Jakarta PT
Indeks Kotler Philip 2007 Manajemen Pemasaran Analisis Perencanaan Pengendalian Prentice Hall
Edisi Bahasa Indonesia Jakarta Salemba Empat Kumar V Lerzan A Bas D Rajkumar V Thorsten W dan Sebastian T 2010 Undervalued or
Overvalued Customers Capturing Total Customer engagement Value Journal of Service Research 13(3) 297-310
MacInnis dan Mello Jefrey A 2001 StrategicHuman Resources Management International Edition South Western Publishing Ohio
Mowen John C dan Minor M 2002 Perilaku Konsumen Jilid 1 Edisi Kelima (terjemahan) Jakarta Erlangga
Nammir Darman Sulaiman Sadiq Bayar Mohamed Rasheed Marane Aree Mohammed Ali 2012 Determine the Role of Customer engagement on Relationship Quality and Relationship Performance European Journal of Business and Management wwwiisteorgISSN 2222-1905 (Paper) ISSN 2222-2839 (Online) Vol 4 No11 2012
Peter Paul J and Olson Jerry C 2002Perilaku Konsumen dan StrategiPemasaran Edisi ke Empat (Terjemahan) Jakarta Penerbit Erlangga
1st Piksi International Conference on Knowledge and Sciences 2014 Page | 18
Rustono 2010 Faktor-faktor yang Mempengaruhi Implementasi Customer Relationship Mangement (CRM) untuk Meningkatkan Loyalitas PelangganRagamJurnal Pengembangan Humaniora Vol 10 No 3 Desember 2010 153-160
Ryals L and S Knox 2001 ldquoCross-Functional Issue in the Implementation of Relationship Marketing Through Customer relationship Managementrdquo European Management Journal Vol 19 No 5 pp 534-542
Setiadi J Nugroho 2005 Perilaku Konsumen Jakarta Kencana Sugiyono 2008 Metode Penelitian Kuantitatif Kualitatif dan RampD Bandung Alfabeta Tjahyadi RA 2010Membangun Hubungan Jangka Panjang Pelanggan Melalui Relationship
Marketing httpmajourmaranathaeduindexphpjurnal-manajemenarticleview178 Vivek SD 2011 A Scale Of Consumer Engagement Disertasi Department of Management and
Marketing in the Graduate School of The University of Alabama Yahya Y 2008 Pengaruh Customer Relationship Management (CRM) dalam Meningkatkan loyalitas
Pelanggan httpfebudiluhuracidwp-contentuploads201105Pengaruh-Customer-Relationship-Management-Dalam-Meningkatka-Loyalitas-Pelanggan-Yohanes-Yahyapdf
- -
(0)
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Published by LPPM Pollteknlk Piksi GaneshO
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MURABAHA IN VALUE ADDED -~ -
Judi Suharsono P3nca Marga SHARIA AN EFFORT TO INCREASE
2 Sulis Dyah Candra 2 Ngatimun
UnivCfsiry PROBOLINGGO SHALLOT FARMERmiddotS
ECONOMIC SCALE AND SPIRITUALITY -Suharyanto THE EFFECT OF JOB PROMOTION
2S Hendra Permana Uni ve rsity Of TOWARD WORK ENTHUSIASM OF
2S Hercyawan Suryakenca na THE EMPLOYEE OF GIRl KEf-1BANG Nugraha HOTEL AND VILLA CIA~JUR
THE COR RElATIO N TEST OF JOB MOTIVATION AND THE EMPLOYEES
lin Kurniawati LP31 PolytechniC JOB DlClPLINE IN SUPPORTING THE
26 DEVELOPMENT OF HUMAN 26Yuyun Taufik Bandung
RESOURCES IN INDONESIA (CASE STUDY IN 17 COMPANIES IN
BANDUNG) LEARNING ORGANIZATIONS
APPLICATIONS IN THE PRIVATE
27 Nur Hayati STIE STAN Indon esia HIGHER EDUCATION TOACHIEV[
27 Mandiri Bandung CO MPETITIVENESS (A CASE STUDY
AT SfIE STA N INDONES IA MANDIRI BANDUNG)
BUILDING KNOWLEDGE SHAR ING
28 Rina Anindita Esa Unggul TRHOUGH WATKIN S AND MARSI CK I
MODEL OF LEARNING 28 ITaufiqurrahman I Universiry ORGANIZATION ADOPTED IN
~I FAS HION CREATIVE INDUSTRY
29 1 Tin Hayati Dewj I PUBLIC RELATIONS AS THE I IAkclelkom FU NCTION OF MANAGEMENT TO
29 Sartika i REAC H THE GOlL OF THE
ORGA NIZATION
College of EX-MINING LAND USE IN THE LIVE
1 Joni Ariansyah I Agricultural
I STOCK SECTOR FOR SUSfAINABLE 30 Ahyar Ismail Luky Academy or East
DEVELOPMENT A BENEFITS 30
Abdullah J Kutai Bogor ANALYSlS
Agricultural Univ
Posma Sariguna Kristen Indon esia
INDONESIAN TRADITIONAL THREAT
31 Johnson Kennedy University Jakarta
LE VEL OF ITS STRATEGIC 31 Hutasoit ENVIRONMENT
Inrormatics and STRATEGIC ANALYSIS MODEL OF
Business Inlitute DETERMINANTS IN MAKING
32 Anoar Sanusi Oarmajaya Bandar
COMPETITIVENESS (STUDY OF 32 TOURISM SECTOR IN BAN DAR
Lampung LAMPUNG)
iii
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33 Sri W3hyuningsih Satya Praliwi
Yenny Marlini
34
Galuh Tresna Murti Rakhmini
Juwita Sakti Muda NasUlion
3S Gregorius N
Masdjojo
Muhammad
I 3fl Taqyudin
00==-- ------shyANALYSIS OF EFFECT OF SOCIAL
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COMPANY (STUDIES IN CORPORATE CUSTO MER PT TELKOM INO ONESIA
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POUTEKNIK LP31 BAN DU NGLP31 Polytechn ic
ACCOUNTING MAJOR STUDE NTS Bandung Universitas 34
PEICEPTION TOWARDS Tit ETerbuka _+__ACC-O-U_NTA_N_T_PRO FESSI 0-_+_-1
THE KEYNESIAN AND THE MONETARY APPROACH TOWARDS
THE DYNAMICS OF FOREI(N
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STUDY IN INDONESIA ON THE
PERIOD 1983-20013 ----fl---AN--LYSIS~OF BEA MASUK--CA
Piksi Ganesha J DITANGGUNG PE~-1ERINTAII 36
I--f-- m i~-hk m I PoIYl edc lJan_ ( ~ _ ~M_p_ _____T~~~-~~ -=~ _____ ~u~ f-IccBcM-OT~J_ ~~~~~~~~sU S_THE INFLUENCE OF OPERATIONAL
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Karyadf Piks i Ganesha TOWAR D NETT RFVFt~UE AT SPORTI I Sugiyante Entang
PolytechnIC Bandung
1 FACILITY DEPARTMENT (CASE
37
STU DY AT BATUNUNG GAL IN OAH 1 WIR)
3B Khoirul Umam Indraprasta PGRI
UniverSity of Jakarta SP IRITUAL MARKETING IN ISLAMIC
PERSPE CT IVE 38
39
Sunandar Ida
Farida Yeni
Pri3tna Sari
Harapan Bersama
P~l ytechn i c Tegal
FACTORS AFFECTING THE USE OF TAX PAYER SERV ICE TAX
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39
DEVELOPMENT STRATEGY OF LAPIS
40 Oesi Harsa nti ResiSC3 Vikaliana
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LEADER IN CULINARY PRODUCT 40
BASED ON TALAS
41 Lll kma nulhakim
AlmamaJik
AN NEW METH OD FOn FIN D AN Plksl Ganesha OPTIMAL SOLUTION FOR
Polytechni c Bandung TRANSPORTATION PROBLEM
1--+----shy - -+-------shy 1-- eLI MmiddotATF ORGANIZATioN
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LOCAL STATE middotOWNED COMPAN IES
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INFORMATION AND TECHNOLOGY
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T HE APPLICATlON OF COBIT 5 FRAMEWORK ANALYSIS IN
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Polytech nic Nurhaeti IN HMljSCADA SYSTEMS
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Piksi Ganesha 66Edi Suharto CASE STU DY 66
Polytechmc Bandung INVENTORY SYSTEM OF GOVERNMENT
PROPERTY OF WEST lAVA
VI
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67 Anton Sukamto Akattlkom Bogor rrHROUGH Emiddot(OMMpoundRCE IN IMPROVING 67
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6B M Farid Rifai middota neshaPksi G
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Len Herfiyanti Polyte( hn ic Bandung RATIONAL UN IFI ED PROCESS (RUP)
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r-+- -cc-------+I--=-------+I- TH E EFF ECT U COUNS W NG I POSTPARTUM TO USE
Christi na Pernalun IAkadem i Keb idanan CONTRAC EPTION TOOLS IN71 71
I Kism oyo j Yogya kana I MUJAHIDAHS MATERNITY HOME
SRIMARTANI PIYUNGAN BANTUL
In Yu GYAKA RTA
DIFfERENCES IN ATTITUDES BETWEEN PSYC HOLOGI STS AN D
Sofia Mahlevi Ciputra University II IPHYSICIANS TOWARD SPIRITUALITY 12
I Andrian Li em Su rabaya CO MPLEM ENTARY -ALT ERN ATIVE
MEDICINE (CAM) IN SURABAYA II i RELATED IN FO RM ATION SOURCES
I ON REP RO DUCTi Ve HEALTHEn dang
Akadem i Kebidanan PREPAREDNESS DEALING WITH73 Khoir unnisa 73
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VII
viii
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137 Dina Mairissa TH E OUTPATIENTS MEDICAL 137University
RECORD S DI STRIBUTION AT GRHA KED OYA HOS PITAL 20 4
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Ceria Fe biana Piksi Ga nesha
TRA DERS PRACTIC E WITH TH E
139 Wempi Eka Polytechnic
EX ISTENCE OF FORMALIN 139 Rusmana CONTA INED WET NOODLES AT
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Piksi Ca nesha
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Bandung PAPER LESS
~WI xiv
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(LFA) MODEL AS AN APPROACH IN Piksi Ganesha EFfiCI ENCY OF MEDICAL RECORD
8S K Prihartono AH Polytechnic MANAGEMENT BY BARBER 8S Ba ndung JHONSON M ETHOD FOR POLICY
DECISION IN AL ISLAM HOSPITAL
BANOUNC
GENE THERAPY THE EFFECT OF
Jessica Novieta Rusli Piksi Ganesha INJECT ING SIRNA
86 Afe ndi S5i MSi
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NORVECfCUSI 81000 PRESS URE
Shinta Dev i QUALITY OF LIFE (QOl)
87 Rossaline Andrian Ciputra Universiry DESC RIPTION FROM SADHANA
87Surabaya YOGA STUDIO MEMBERS IN
Liem SURABAYA A PILOT STUDY -shyTHE EFFE CTS OF MASSAG E
Dien Fitria ReIna Akademi Kebidanan COUNTERmiddotPRESSURE ON LAGOR
88 Hcru Se(yorini Yogyaka r ta
PAIN REDUCTION IN BINA SEHAT 88 jumiyati MATERNITY HOME
BANTUL YOGYAKARTA
I
PERFORMANCE OBSERVED FROM
I MANAGEMENT SYSTEM OF I OCCUPATIONAL SAFETY AND I I
89 Abdul Rahim
I Manda la Waluya HEALTH (SMK3) TH RO UGH
89 ISya middotban College of Ke ndart MOTIVATION ON F1SH PROCESSING
I CO MPANY IN THE INDUSTRIAL
IAREA OF OCEAN FISHERIES PORT KENOARI
Eny Retna Akademi Kebidanan
KNOWLEDGE AND SUPPORT THE
90 Ambarwa ti Elsa Y YogyakJrta
FAM ILY WITH ANX IETY ON 90 Tamen o Si ti Abdilah PRIMIGRAVIDA lCOM PARISON OF KNOWLEDGE
I AN D ATTITUDE TOWARD I I
91 Ike Natalia Ciputra Universi(y COMPLEMENTARY middotALTERNATIVE
91Andrian Liem Su rabaya MEDICINE (CAM) MUSIC THERAPY
AMO NG PSYCHOLOGI ST S AND PHYSICIANS IN SURABAYA
THE IMPLEMENTATION OF CODING
Nuryati Surya Gaja h Mada DIAGNOSIS AND PROCEDURES IN
92 PANT RAPIH HO SPITAL 92Nugroho M2rkus University
YOGYAKARTA BASED SM
ELEMENTS OF MANAGEMENT
Ainun jaryah Oahrir DE SC RIPTIVE ST UDY QUALITY OF
I93 Evelyn Christyanti Ciputra Universny
LIFE (QOL) Of PATIENTSmiddot USING 93Trisula Andrian Surabaya
I ACUPUNCTURE IN SURABAYA ILiem I J
- -----shyPILOT STUDY ENTREPRENEURIAL
WJTH Andrian Liem Ciputra Uni-rersity
SUSTAI NABrLlTY Of 94 Kuncoro Dewi COMPLEMENTARY -ALTERNATIV E 94
Rahmawari Surabaya
MEOKINE (CA M) SERVICES IN SURABAYA-_ ----- -_
THE INFLU ENCE OF MED ICAL RECORDER CO MP ETE NCE
Sali Setiatin Shinta Piisi Ganesha TOWARDS
-I -95 Williani Farida POlytechnic 95
DIAGNOSI SCODEF ICATION
Gustini Band ung I
ACCURANCY ON THE HeA lTH BP) S tlt CLAIMS l- --- -shy
THE INF1U ENCE COMPETENCE OF gt
Tedi Hidayat Annisa Piksi Gallesha DO CTORS NURSE AND MEDICAL i
RECORD TOWARD TH E 96 Khofifah Nurul Dwi Polyte chnic
QUALITY OF MEDICAL RECORD AT 96 Arya ni Bandu ng PARU ROTINSULU HOSPITAL
BAND UHG - shy _ _-shy -
Savilri Citra Bud THE USE OF SYMBOLS AND
Gadjah Mada ABBREV IATION RELATED TO KARS
97 Roro Ayu Sekar University STANDARD ACCREDITAT ION AT
97 Mayang Yogyakarta
PANTI RAPIH HOSPITAL
I II THE RELATION BETWEEN THE
Piksi Ganesha PROFESSION PRECEPTION OF
I 98 A Pu WY I Polytechnic
NURSERY ABILITY AND WORK 98
Emyha Fi skasari MOTIVATION WITH TH E NURSE-S ~ Bandung WORK PERFORMANCE AT ALmiddot
I ISLAM HOSPITAL BAfWUNG Dewi Sartika
rOMPARISON or QUALITY Of LIFE Indrayani Bony Mllt1wifEry
I 8eTWeEN VASCCTOMISW AND i
99 Wiem Lestari Academy NONmiddot VASECTOM ISEO MEN IN 99
Herman Susanto Padjadjaran DISTRICT OF KIA RAP EDES University PURWAKARTA REG ENCY
THE INFLUENCE OF COMPETENCE
Piksi Ganesha AND CHAMCTERISTICS or
Sali Setlatin lka MEDICAL RECORD TOWARDS 100 Kartisyah Leni Polytechni c THE QUALITY OF MEDICAL RECORD 100
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HOSPITAL
Andrian F Sia haan UGM Vocational ABORTION PROmiddotCHOICE AN D101 Midwifery EVALUATION OF BENEFICIAL
101 Hadianto Ismangoen
---shy
x
-
SOIO-HUMANIORA
NO NAME TITLE PACE Noremy Md Akhir
Universili Sains FLOO D DISASTERS IN MALAYSIA
102 Azlinda Alman M Malays ia (U SM)
THE PSYCHOSOCIAL ISSUES AND 102 Fadhil Nordin INTERVENTION -
LONG DISTANCE FAMILY
Bunda Mulia CO MMUNICATON (CASE STUDY
103 Lasmery RM Girsang Universlry
FAMILY COM MUNICATI ON 103 6ETWEEN HEAD OF FAMI LY WITH
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Nove Eka Variant EVALUATION OF THE ROLE OF TA MAN BACAA N MASYPRAKAT
104 Anna Dyah Airlangga University (TBM) IN EMPOWERING $URABAYA
104 PJspitasa ri
CITY PEOPLE
Sulis Oyah Ca ndra MODA Ll11 SENS ITIVITY INFLUENC E
Panea Marga ON CO UNSELIN G COMMUNI CATION105 Judi $uh arso no
Univrrsiry TO FAR MER GROUPS IN 105
Setyani Hidayati PROGOLINGGO CITY
THE AUTHORITY Of RELIGION 106 Ahmad Dami ri STIES Darul Ulum TR IAL IN THE RESOLUTION OF 106
SYA RIA ECON OMIC LEGAL ACTION
Piksi Ganesha MORPHOLOGI CAL ANA LYSIS ON THE
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WO RDS IN THE W INDOWS 107 I PROGRAM
I- Fauzi Chaniago Isak Piksi Ganesh a ON LINE TRAN SACTION FROM TH E 108 Abdul Gani PolytechniC BOl ndung PERS PECTIV E OF THE ISLAMIC LAW
108
Muhamad fadhil GLOBALIZING INFORMATION
TECHNOLOGY
109 Nurdin Ar i Canjar
Padjadjarm University ISSU ES AND CHALLENG ES IN 109 Herdiansah Wahyu
CONTEMPORARY INDONESIAN Gunawan
DEMOCRACY
Widya Manda la ED UCATION AS T HE ENRIC HINC
110 Ramon E Nadres Catholic Un[versiry I DIALOGUE BETWEEN TWO UNIQUE 11 0
PERSON S
Mochammad Tholib Universitas Islam THE ROLE OF INFORMATION
111 Sri Anik
Sultan Agung TECHNOLOGY TOWARDS T HE 111 Semarang TEACHERS PER FORMACE
TH E GREATNESS OF SHALAT IN INCREASING THE HUMANmiddot GOD
11 2 Asep Dede Kurnia STIES Daru] Ulum COMMUNI CATION QUALITY 112 TO FORM A GOOD ETHICS IN THE
DA ILY LIFE THE DISC RIMINATION BETWEEN DEWAN PERWAKILAN DAERAH
11 3 Nanang Koyim STIES Daru l U[um WITH DEWAN PERWAKILAN 11 3 RAKYAT IN T HE INDON ESIAN
CONSTIT UTIONAL
Santy Chri stinawati Piksi Ganesha ALAY LANGUAGE PHENOM ENON ON
11 4 Po lytechni c Ba ndung rACE BOOK
114
XI
--
-- ------ -
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TH EIMPORTANCE OF FOR EIGN-- LANGUAGE COMPETENCIES IN Bunda Mulia
Nurdiana Usman GLOBALI ZATION ERA AND THEIR 115 A115 University -shy
IMPLICATIONSON FOREIGN
LAN GUAG E TEACHING
Catholic Un1VerSi~ Yuli Widiana W ldya Mandala METAP HO R IN POLITICS 116116
Madiun
Universitas Ci pu tra THE RO LE OF PSYCHOLOGY IN Theda Renanita 11 7117
Surabaya TOURISM INDUSTRY
STISI POL Dh arma GOOD GOVERNANC E PRINCIPLES AT Ita Prihanlika Sutiyo liBliB
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GUTTER IN TH E CO MICS AN ALTERNATI VE WAY FOR T HE
-
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COMPOSITION SUBJE CT OF STU ~Y
VIS MERAH PUTIH METODOLOGY A
Kiln NUfachadijat Akalelkom Bogor REVOLUTIONARY WAY OF 120 ~120 -THINKIN G t
- -
POSTERS
-NO NAM E IN STITUTION lSl L TITLE LPAGE
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1st Piksi International Conference on Knowledge and Sciences 2014 Page | 9
THE ROLE OF DYNAMIC MODEL OF CUSTOMER ENGAGEMENT TOWARD CUSTOMER VALUE
Ardian Adhiatma
M A Irfan Rahmana Dept of Management Faculty of Economics UNISSULA Semarang Indonesia
E-mail ardianunissulaacid irfanrahmanayahoocom
ABSTRACT The added value of the company at this time can not always be built only through customer satisfaction but more to factors such as communication coaching and sharing of the company as stated in the customer engagement The purpose of this study is to know the role of dynamic models of customer engagement toward customer value Explanatory research is conducted on 50 owners managers and authorized personnel in corporate decision The sampling used is purposive sampling Furthermore there are three variables involved in this study those are customer engagement relationship quality and customer value The data of these three variables is obtained from questionnaires Partial least squares analysis with smart PLS 20 is used to determine the correlation within variables Customer engagement shows a positive results and significant influence to customer value either directly or indirectly through the relationship quality in which the influence of indirect coefficient (0499) is higher than the direct coefficient (0491) So it can be concluded that customer engagement has a role in improving customer value through relationship quality
Keywords customer engagement relationship quality customer value
1st Piksi International Conference on Knowledge and Sciences 2014 Page | 10
A INTRODUCTION Nowadays Challenges in the business field have become increasingly tight and
complicated because the presence of dynamical complexities in the market values in which the needs and demands of customers as main stakeholders have changed massively The change of customers condition in demand occur because the presences of information and choices have grown rapidly Not only self-needs experiencing a change but also the ways customers access the needs also change from time to time In the past customer satisfactions were mostly determined by the quality of productsservices pricing and after-sales service Briefly its only three aspects that got too much attention marketers only focused in improving the quality of products pressing price efficiency to be affordable and opening outlets of after sales service Yet in the present day these aspects are considered not meet expectations customers want more of these aspects as a prerequisite for their satisfaction In conclusion it means that the needs of customers expectations has changed so that the programs and approaches to satisfy customers should also be conducted (Rustono 2010)
The phenomena as mentioned above also occur in courier Industries The rapid competition of courier industries in Indonesia is not only caused by globalization but also customers awareness of price and high demands The rapid growth of communication and technology also contribute to the increase of competition intensity since it gives customers access to more information about the wide range of products or services offered These conditions lead customers to have more choices in spending their money
The added value of the company at this time can not always be built only through customer satisfaction but also more to other factors such as communication coaching and sharing of the company as stated in the customer engagement Customer engagement is the peak of the companys relationship with customers to survive and thrive to launch new products to pay more attention into competitor products to sell more products from competitors Besides that the companies also have to implement Customer Relationship Management whereby customer engagement is one of its components At the level of customer engagement relationship built has already been a combination of rational and emotional aspects The quality of this relationship has reached the level of the inner closeness and long-term dimension (Shevlin 2011 in Vivek 2011)
The concept of customer engagement has also been frequently considered as a potential superior strength to predict and to explain the context of the service retention and customer loyalty (Bowden 2009 in Hollebeek 2009) Furthermore Customer engagement is a promising new concept and expected to exceed the contribution given by traditional relational construction including perceived quality customer engagement and satisfaction in explaining and predicting customer value (Hollebeek 2009) Customer value is defined as the emotional bond that exists between customers and manufacturers because the customers use the products and services of the company and then find that the product or service give them additional value (Tjiptono 2005)
The study by Hollebeek (2009) concludes that the customers engagement improve loyalty satisfaction empowerment connection emotional bonding trust and commitment Furthermore Kumar et al (2010) emphasizes that customers can be involved in creating value for the company in various ways first the customer lifetime value (customer buying behavior) second the customer referrals value (related to referral incentives of new customers) third customer influence value (related to customers behavior to influence other customers which increases the acquisition retention and share of wallet through communication among customers and existing prospects) and fourth is the customer knowledge value (surplus for the company with feedback from customers) Customer engagemet value (CEV) provides a comprehensive framework that can ultimately lead to more efficient marketing strategies that enable a higher long-term contribution to customers The study by Vivek (2011) proves that customers engagement in turn can positively influence the companys relationship with customers and raises good faith and intention to do business with the company
The capability of Customer engagement in predicting customer value has been adopted as a marketing strategy by PT Siba Courier Indonesia This strategy is implemented because until this time if it is compared with its competitors PT Siba Courier Indonesia is far behind from their competitors in terms of the availability of fleet infrastructure and age In the future PT Siba Courier Indonesia is predicted to be abandoned by its customers if only rely on the availability of
1st Piksi International Conference on Knowledge and Sciences 2014 Page | 11
limited facilities and infrastructure The fact that the customers of PT Siba Courier Indonesia both in Jakarta and Semarang are still loyal to use the services of this company and even if they keep patient waiting queue to obtain service because the company have overload in order delivery If in general to improve the competitiveness and to maintain the survival of the company efforts are made through internal factors (improvement of service quality provision of infrastructure and facilities services technological advances etc) in this study exactly at PT Siba Courier Indonesia the related cases are not found Therefore it is interesting to do a more focused study on the role of dynamic models of customer engagement toward customer value in the PT Siba Courier Indonesia
B LITERATURE REVIEW
Customer Engagement Customer engagement (CE) is the intensity of customer participation by representatives
of the organization and through other customers in the process of collaborative knowledge exchange (Wagner and Majchrzak 200720) in Vivek (2011) Engagement refers to customersrsquo perception toward the importance or personal relevance of objects events and activities In this case Customers will acquire that a certain product has a personal relevance and relationship with them Relationship quality
The relationship quality or connections is represented through real-image of relationship and individual experience of each party in the relationship A subjective connection is obtained through positive passion energy matter and togetherness (Quinn and Dutton 2005 Heaphy amp Dutton 2008 in Vivek 2011) in which Two people involved in the connection and active participation (Heaphy and Dutton Vivek 2008267 in 2011)
In this study connection is defined as a positive emotional relationship that customers have a sense of belonging to the companies The quality of relationship construction is based on the amount of time spent in the workplace employees are significantly influenced by their relationships formed in the workplace so the connection significantly influences the function of the organization Customer value
The concept of customer value (CV) by Kotler and Keller (2009 14) is the combination of quality service price of products or services Furthermore Customer value is the dispute between the amount of value for customers and the total cost of customers and the amount of value for customers are customers expected profit of certain goods or services
According to Best in (Sumarwan et al 2010 30) the customer value is a benefit or profit obtained by customers lessened by the cost of the purchase Based on this concept customer value is derived from the economic customer and emotional benefits Economic Benefit is obtained from surplus of price and cost but not the cost of purchase which includes acquisition ownership usage maintenance repairment and disposal costs Customers Benefit is derived from the product appearance service and reputation Emotional Benefit is the overplus of the product to meet the emotional needs of the customer associated with psychological needs types of customers personality and customer personal value
C RESEARCH METHOD
The population of this study is all customers of PT Siba Courier Indonesia totaling 40 companies spread over two cities Semarang and Jakarta Because of limited number of population the total population is all designated as sample or census research Moreover it is also with the consideration that using total population as a sample will get a more representative description and minimize the error rates so that the data obtained will be close the real value The sample proposed is the companies which at least for three years have actively used services of PT Siba Courier Indonesia Then from each company it is selected two people from the owner and the manager or the other person who has the authority to make decision (the decision maker)
The data collection method is purposive sampling and the analysis techniques is performed by Partial Least Square and Sobel Test
Table 1
1st Piksi International Conference on Knowledge and Sciences 2014 Page | 12
Research Variables and Indicators No Variables Indicators Shape
1 Customer engagement is the level of customers attention to the company
Sharing (CE1)
Likert Scale 1-5
Learning (CE2) Advocating (CE3) Socialization (CE4) Co-developing (CE5)
2 Relationship quality is quality of the relationship created between customer and companies
Trust (RQ1) Commitment (RQ2) Satisfaction (RQ3)
3
Customer value is the matched value perceived by customers on the services prices of the products quality received by them
Connection with Company (CV1) Goodwill (CV2) Word of Mouth (CV3) Affective Commitment (CV4) Intent to do Business (CV5)
Data Analysis
PLS (Partial Least Square) is used to examine and test the hypothesis proposed PLS has advantages that lsquoit involves no assumptions about the population or scale of measurement (Fornell amp Bookstein 1982) and consequently it works without distributional assumptions and by nominal ordinal and interval scaled variables However one has to bear in mind that the PLS like any statistical technique also requires certain assumptions to be fulfilled Apart from the standard ones (ie the classical Gaussian linear ordinary least squares) regression models (see eg Gujarati 1995) the most important predictor of the assumption is the specification (Chin amp Newsted 1999)
D FINDINGS Based on data analysis of the study it can be explained the analysis of partial least
squares (PLS) as follows Inner PLS model results
The indicators of customer engagement consist of sharing (CE1) learning (CE2) advocating (CE3) socialization (CE4) and co-developing (CE5) The outline of the PLS model for the indicators proposed is shown in Table 2
Table 2 Test Results of Validity and Reliability of Customer Engagement Indicator Variables
No Indicator Test Validity Composite Reliability Loading T-Statistic Criteria
1 CE 1 0919 9438 valid
0876 2 CE 2 0753 5330 valid 3 CE 3 0711 4915 valid 4 CE 4 0851 7639 valid 5 CE 5 0854 6314 valid
Sources Primary data processed in 2014
Table 2 is the result of convergent validity test 5 indicators of customer engagement have loading factor value more than 05 by the T statistical value of all indicators greater than T Table by 196 so that all indicators of customer engagement can be said to be valid The order of the strongest to the weakest indicator is CE1 (sharing) CE5 (co-developing) CE4
1st Piksi International Conference on Knowledge and Sciences 2014 Page | 13
(socialization) CE2 (learning) and CE3 (advocating) Based on the composite reliability test of indicator measuring the construct it shows a satisfactory results in the amount of 0876 meaning that the construct of customer engagement can provide relatively similar results when it is measured again by the same subjects
The indicator of Relationship quality consists of three indicators namely trust (RQ1) commitment (RQ2) and satisfaction (RQ3) The results of the PLS model for the outer indicators is shown in Table 3 below
Table 3
Test Results of Validity and Reliability of Relationship Quality Indicator Variables
No Indicator Test Validity Composite Reliability Loading T-Statistic Criteria
1 RQ1 0822 4959 valid 0731 2 RQ2 0812 5508 valid
3 RQ3 0785 5318 valid
Sources Primary data were processed in 2014
Table 3 is the result of convergent validity test 3 indicators of relationship quality has a loading factor values more than 05 and the value of the T statistic is higher than the T table by 196 so that all indicators of relationship quality can be said to be valid The order of the strongest to the weakest indicator is RQ1 RQ2 and RQ3 Based on the composite reliability test of the indicators measuring construction it showes a satisfactory results in the amount of 0731 meaning that the relationship quality constructs can provide relatively similar results if it is measured again by the same subjects
The indicator of Customer value consists of 5 indicators the connection with the commpany (CV1) goodwill (CV2) word of mouth (CV3) affective commitment (CV4) and intent to do business (CV5) The result of outer model is in Table 4
Table 4 Test Results of Validity and Reliability of Customer value Indicator Variables
No Indicator Test Validity Composite Reliability Loading T-Statistic Criteria
1 CV1 0 815 9 382 valid
0860 2 CV2 0 752 6 211 valid 3 CV3 0 712 4 022 valid 4 CV4 0 886 7 349 valid 5 CV5 0 837 7 649 valid
Table 4 is the result of convergent validity test 5 indicators of customer value has a
loading factor value more than 05 and the value of statistical Tgt T Table by 196 so that all indicators of customer value can be said to be valid The order of the strongest to the weakest indicator is CV4 CV5 CV1 CV2 and CV3 Based on the composite reliability test of indicators measuring the block construct it shows a satisfactory results in the amount of 0860 meaning that the construct of customer value can provide relatively similar results if it is measured again by the same subjects Inner PLS model results
Inner models describes the relationship among latent variables based on substantive theory The results of the bootstrapping output graphs display the relationship among variables such as customer engagement relationship quality and customer value as shown in Figure 2
1st Piksi International Conference on Knowledge and Sciences 2014 Page | 14
Based on calculations in Figure 2 It is known that the direct influence of customer engagement on customer value is equal to 0491 with the indirect influence of 0984 x 0507 = 0499 It means that the indirect influence is higher than the direct Thus the relationship quality variable is the path of the relationship between the customer engagement and customer value Briefly it means that customer engagement can directly improve customer value by trying to increase the relationship quality first
Sources Primary data processed 2014 Figure 1
The relationship Model between the Customer Engagement Relationship quality and Customer value of PT Siba Courier Indonesia
Figure 1 also shows the magnitude of the determination coefficient The coefficient of determination is used to recognize how significant the influence of exogenous variables toward endogenous the higher the value of the coefficient of determination the higher the influence of exogenous variables on endogenous will be R-square value generated from the relationship between customer engagement with the relationship quality is 0969 meaning that the variation of relationship quality which can be explained by customer engagement is 969 while the remaining 31 is obtained from other variables Then R-square value of the relationship model between customer engagement relationship quality and customer value is 0988 it means that the variation of customer value that can be explained by the relationship quality and customer engagement is 988 while the remaining 12 are determined by other variables
Then the hypothesis test is performed by looking at the value of t count if tcount is higher than ttable (alpha 5 = 196) then the alternative hypothesis (H a) is accepted and H 0 is rejected and so that for the opposite Based on the PLS test the results of testing the relationship among variables can be seen in Table 9 and Figure 3
Table 5 Results of Inner Weight
No The relationship among variables Original Sample (O) T Statistics (| O Sterr |) Criteria
1 CE -gt CV 0491 2312 Significant 2 CE -gt RQ 0984 110053 Significant 3 RQ -gt CV 0507 2383 Significant
Sources Primary data processed 2014
1st Piksi International Conference on Knowledge and Sciences 2014 Page | 15
1 The first hypothesis the customer engagement significantly influences the relationship quality Based on the PLS calculations result in Table 8 testing the first hypothesis about the
influence of customer engagement on relationship quality it is obtained the value of the estimated coefficient (β) of 0984 with t statistic value of 110053 This result is much higher than t-table value which is only 196 Then it can be concluded that there is a positive significant influence on the customer engagement variable toward the relationship quality Thus the first hypothesis is accepted
2 The second hypothesis the customer engagement significantly influences the customer value Based on the PLS calculations result in Table 9 testing the second hypothesis about the
influence of customer engagement toward customer value it is obtained the value of the estimated coefficient (β) of 0491 with t statistic value of 2312 This result is higher than t-table value which is only 196 So it can be concluded that there is a positive significant influence of the customer engagement variable toward customer value Thus the second hypothesis is accepted
3 The third hypothesis relationship quality significantly influence customer value Based on the PLS calculations result in Table 9 testing the third hypothesis about the
influence of relationship quality on customer value it is obtained the value of the estimated coefficient (β) of 0507 with t statistic value of 2383 This result is higher than t-table value which is only 196 So it can be concluded that there is a positive significant influence of the relationship quality variable on customer value Thus the third hypothesis is accepted Sobel Test Results
Sobel test is conducted by testing the strength of the indirect influence of independent variables (customer engagement) toward dependent variable (customer value) through intervening variable (relationship quality) This test is done by Online Sobel Test Calculator for the Significance of Mediation by entering the regression coefficient and standard error values of the customer engagement variables to the relationship quality and the regression coefficient and standard error values of the relationship quality variable to customer value in which it gets the result as follows
Figure 4
Sobel Test Results Sobel test shown in Figure 4 shows the Sobel test statistic value of 23797 with a one-
side significance value of 0009 because the significance value is lt005 therefore it can be said that the relationship quality is the intervening variable of the correlation of customer engagement and customer value
E DISCUSSION In this study Customer engagement positively influences relationship quality it means
that the better the customer engagement the better the relationship quality between the customer and the company By involving customers such as Inviting them to share about the things to improve the performance of the company or promote cooperation between companies and customers (share) inviting customers to know more about the company (learning) motivating customers to inform others about the companys products or services (advocating) motivating customers to promote products services of the company (socialization) and motivating customers to contribute ideas that might contribute to the improvement of performance and service of the companies (co-developing) then it will be able to create a good quality relationships between the companies and customers
1st Piksi International Conference on Knowledge and Sciences 2014 Page | 16
This is in line with the findings by Saks (2006) which states that the employee engagement has been implemented as a means to explore and explain the organizational commitment and behaviors of the members and also applied as a predictor of customer ratings toward the companies Furthermore the finding of the study is also in accordance with the opinion of Salanova et al (2005) that engagement has also been recognized as a way to improve morale cohesion and psychological relationship between the customer and the company or organization
The quality of a good relationship is manifested by the growth of customer trust the presence of customer commitment to always use the companys services and customer satisfaction with the overall service provided by the company
Customer engagement in this study positively contribute to customer value the better the company does customer engagement efforts it will contribute to higher customer value Involving customers such as inviting them to share about the things to improve the performance of the company or promote cooperation between companies and customers (share) inviting customers to know more about the company (learning) motivating the customer to inform others about product and service of companies (advocating) motivating customers to promote products services company (socialization) and motivating customers to contribute ideas to improve the performance and service companies (co-developing) will be able to create high customer value
The studys findings are in line with the study conducted by Li and Dant in Vivek (2011) which concludes that the intensity of customer engagement will be positively related to the value received by customers By the time customers are treated very well and considered as part of the company it will raise the principle of reciprocity in which the customer will give the good attitude as good as what they have received by the company (Bagozzidalam Vivek 2011)
Companies Interaction to customers via initiative engagement strategies will make the reciprocity norm appear to customersrsquo engagement If the company successfully engage customers customers will recognize the benefits received and give return values to indicate behavioral intentions In the return of value received customers will have a good faith and affective commitment to the organization and may be willing to develop a strong relationship with the organization
Moreover in this study relationship quality give positive influence on customer value The better relationship quality the better the customer value will be It means that relationship quality is one of the important factors to increase customer value Relationship quality is needed to drive steer cultivate and maintain customer behavior towards the achievement of better corporate performance
Relationship quality in this study also serves as a mediator of the influence of customer engagement toward customer value Customer value will be stronger with the role of relationship quality in it Starting from involving customers by sharing it will create a good relationship between the company and customers Then One of the good form of relationship is the emergence of self-confidence of the customers toward the the company Based on these good relationships created customers will give a positive assessment to the company by the form of manifesting customer awareness of the companys survival (affective commitment) which in this study seems to show the highest loading value of all indicators of customer value
Empirically findings of this study support the finding by John (2008) that concludes that the success in fostering good relationship with customers is actually a beneficial thing that can bring profit for both parties The relationship created between the company and the customer will make communication better
After feeling satisfied and having created a good relationship then the customers will tell the companyrsquos advantage to others The information spread by the customer can build a good image about the company and it can bring in new clients or customers for the companyBy a good relationship not only company but also customers will get profits and advantages Benefits and advantages gained by customers also vary eg special price given by the company and get extra service for being a loyal customer
F CONCLUSION Based on the analysis and discussion in this study it obtains a general conclusion as
follows
1st Piksi International Conference on Knowledge and Sciences 2014 Page | 17
1) Customer engagement have a positive significant influence on relationship quality It means that the better the customer engagement the better the relationship quality will be and the increased sharing programs between companies and customers is a way that can be used to improve customer engagement and gain trust of customers to be better 2) Customer engagement have a positive significant influence on customer value It means that the better the customer engagement the better the customer value will be and the improvement of sharing programs between companies and customers is a way that can be used to improve customer engagement and to establish customer awareness of the companiesrsquo survival company (affective commitment) And 3) Relationship quality have a positive significant influence on customer value it means that the better the relationship quality the better the customer value and establishing trust of the customer is a way to improve the quality of relationships and increase customer awareness of companies survival (affective commitment)
This study has limitations that is the study results can not be generalized beyond the sample of the study because the respondents used is only limited to customers of PT Siba Courier Indonesia representing Semarang and Jakarta city Thus to conduct similar study involving all customers of PT Siba Courier Indonesia spreading in many cities around Indonesia still need to be considered
BIBLIOGRAPHY Brodie JR Ilic A Hollebeek L 2011 Consumer engagement in a virtual brand community An
exploratory analysis Journal of Business Research xxx (2011) xxxndashxxx Cateora Philip R Graham John L 2007 Pemasaran Internasional 13th Edition Jakarta Salemba
Empat Chan S 2003 Relationship Marketing Inovasi Pemasaran yang Membuat Pelanggan Bertekuk
Lutut Jakarta Penerbit PT Gramedia Pustaka Utama Copulsky J R and M J Wolf 1990 Relationship Marketing Positioning for the Future The
Journal of Business Strategy Fandy Tjiptono 2005 Pemasaran Jasa 1st Edition Malang Bayu Media Publishing Fuad Masrsquoud 2004 Survai Diagnosis Organisasional Konsep dan Aplikasi Semarang Diponegoro
University Press Groumlnroos C 1994 ldquoFrom Marketing Mix to Relationship Marketing Towards a Paradigm Shift in
Marketingrdquo Management Decision Vol 32 No 2 pp 4-20 Hollebeek LD 2009 Demystifying Customer Engagement Toward the Development of a
Conceptual Model AMZNAC 2009 1-9 Imam Ghozali 2006 Structural Equation Modeling Metode Alternatif denganPLS (Kedua ed)
Semarang Diponegoro University Press Kotler Philip amp Keller Kevin Lane 2009 Manajemen Pemasaran Edisi 13 Jilid 2 Jakarta PT
Indeks Kotler Philip 2007 Manajemen Pemasaran Analisis Perencanaan Pengendalian Prentice Hall
Edisi Bahasa Indonesia Jakarta Salemba Empat Kumar V Lerzan A Bas D Rajkumar V Thorsten W dan Sebastian T 2010 Undervalued or
Overvalued Customers Capturing Total Customer engagement Value Journal of Service Research 13(3) 297-310
MacInnis dan Mello Jefrey A 2001 StrategicHuman Resources Management International Edition South Western Publishing Ohio
Mowen John C dan Minor M 2002 Perilaku Konsumen Jilid 1 Edisi Kelima (terjemahan) Jakarta Erlangga
Nammir Darman Sulaiman Sadiq Bayar Mohamed Rasheed Marane Aree Mohammed Ali 2012 Determine the Role of Customer engagement on Relationship Quality and Relationship Performance European Journal of Business and Management wwwiisteorgISSN 2222-1905 (Paper) ISSN 2222-2839 (Online) Vol 4 No11 2012
Peter Paul J and Olson Jerry C 2002Perilaku Konsumen dan StrategiPemasaran Edisi ke Empat (Terjemahan) Jakarta Penerbit Erlangga
1st Piksi International Conference on Knowledge and Sciences 2014 Page | 18
Rustono 2010 Faktor-faktor yang Mempengaruhi Implementasi Customer Relationship Mangement (CRM) untuk Meningkatkan Loyalitas PelangganRagamJurnal Pengembangan Humaniora Vol 10 No 3 Desember 2010 153-160
Ryals L and S Knox 2001 ldquoCross-Functional Issue in the Implementation of Relationship Marketing Through Customer relationship Managementrdquo European Management Journal Vol 19 No 5 pp 534-542
Setiadi J Nugroho 2005 Perilaku Konsumen Jakarta Kencana Sugiyono 2008 Metode Penelitian Kuantitatif Kualitatif dan RampD Bandung Alfabeta Tjahyadi RA 2010Membangun Hubungan Jangka Panjang Pelanggan Melalui Relationship
Marketing httpmajourmaranathaeduindexphpjurnal-manajemenarticleview178 Vivek SD 2011 A Scale Of Consumer Engagement Disertasi Department of Management and
Marketing in the Graduate School of The University of Alabama Yahya Y 2008 Pengaruh Customer Relationship Management (CRM) dalam Meningkatkan loyalitas
Pelanggan httpfebudiluhuracidwp-contentuploads201105Pengaruh-Customer-Relationship-Management-Dalam-Meningkatka-Loyalitas-Pelanggan-Yohanes-Yahyapdf
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1st Piksi International Conference on Knowledge and Sciences 2014 Page | 9
THE ROLE OF DYNAMIC MODEL OF CUSTOMER ENGAGEMENT TOWARD CUSTOMER VALUE
Ardian Adhiatma
M A Irfan Rahmana Dept of Management Faculty of Economics UNISSULA Semarang Indonesia
E-mail ardianunissulaacid irfanrahmanayahoocom
ABSTRACT The added value of the company at this time can not always be built only through customer satisfaction but more to factors such as communication coaching and sharing of the company as stated in the customer engagement The purpose of this study is to know the role of dynamic models of customer engagement toward customer value Explanatory research is conducted on 50 owners managers and authorized personnel in corporate decision The sampling used is purposive sampling Furthermore there are three variables involved in this study those are customer engagement relationship quality and customer value The data of these three variables is obtained from questionnaires Partial least squares analysis with smart PLS 20 is used to determine the correlation within variables Customer engagement shows a positive results and significant influence to customer value either directly or indirectly through the relationship quality in which the influence of indirect coefficient (0499) is higher than the direct coefficient (0491) So it can be concluded that customer engagement has a role in improving customer value through relationship quality
Keywords customer engagement relationship quality customer value
1st Piksi International Conference on Knowledge and Sciences 2014 Page | 10
A INTRODUCTION Nowadays Challenges in the business field have become increasingly tight and
complicated because the presence of dynamical complexities in the market values in which the needs and demands of customers as main stakeholders have changed massively The change of customers condition in demand occur because the presences of information and choices have grown rapidly Not only self-needs experiencing a change but also the ways customers access the needs also change from time to time In the past customer satisfactions were mostly determined by the quality of productsservices pricing and after-sales service Briefly its only three aspects that got too much attention marketers only focused in improving the quality of products pressing price efficiency to be affordable and opening outlets of after sales service Yet in the present day these aspects are considered not meet expectations customers want more of these aspects as a prerequisite for their satisfaction In conclusion it means that the needs of customers expectations has changed so that the programs and approaches to satisfy customers should also be conducted (Rustono 2010)
The phenomena as mentioned above also occur in courier Industries The rapid competition of courier industries in Indonesia is not only caused by globalization but also customers awareness of price and high demands The rapid growth of communication and technology also contribute to the increase of competition intensity since it gives customers access to more information about the wide range of products or services offered These conditions lead customers to have more choices in spending their money
The added value of the company at this time can not always be built only through customer satisfaction but also more to other factors such as communication coaching and sharing of the company as stated in the customer engagement Customer engagement is the peak of the companys relationship with customers to survive and thrive to launch new products to pay more attention into competitor products to sell more products from competitors Besides that the companies also have to implement Customer Relationship Management whereby customer engagement is one of its components At the level of customer engagement relationship built has already been a combination of rational and emotional aspects The quality of this relationship has reached the level of the inner closeness and long-term dimension (Shevlin 2011 in Vivek 2011)
The concept of customer engagement has also been frequently considered as a potential superior strength to predict and to explain the context of the service retention and customer loyalty (Bowden 2009 in Hollebeek 2009) Furthermore Customer engagement is a promising new concept and expected to exceed the contribution given by traditional relational construction including perceived quality customer engagement and satisfaction in explaining and predicting customer value (Hollebeek 2009) Customer value is defined as the emotional bond that exists between customers and manufacturers because the customers use the products and services of the company and then find that the product or service give them additional value (Tjiptono 2005)
The study by Hollebeek (2009) concludes that the customers engagement improve loyalty satisfaction empowerment connection emotional bonding trust and commitment Furthermore Kumar et al (2010) emphasizes that customers can be involved in creating value for the company in various ways first the customer lifetime value (customer buying behavior) second the customer referrals value (related to referral incentives of new customers) third customer influence value (related to customers behavior to influence other customers which increases the acquisition retention and share of wallet through communication among customers and existing prospects) and fourth is the customer knowledge value (surplus for the company with feedback from customers) Customer engagemet value (CEV) provides a comprehensive framework that can ultimately lead to more efficient marketing strategies that enable a higher long-term contribution to customers The study by Vivek (2011) proves that customers engagement in turn can positively influence the companys relationship with customers and raises good faith and intention to do business with the company
The capability of Customer engagement in predicting customer value has been adopted as a marketing strategy by PT Siba Courier Indonesia This strategy is implemented because until this time if it is compared with its competitors PT Siba Courier Indonesia is far behind from their competitors in terms of the availability of fleet infrastructure and age In the future PT Siba Courier Indonesia is predicted to be abandoned by its customers if only rely on the availability of
1st Piksi International Conference on Knowledge and Sciences 2014 Page | 11
limited facilities and infrastructure The fact that the customers of PT Siba Courier Indonesia both in Jakarta and Semarang are still loyal to use the services of this company and even if they keep patient waiting queue to obtain service because the company have overload in order delivery If in general to improve the competitiveness and to maintain the survival of the company efforts are made through internal factors (improvement of service quality provision of infrastructure and facilities services technological advances etc) in this study exactly at PT Siba Courier Indonesia the related cases are not found Therefore it is interesting to do a more focused study on the role of dynamic models of customer engagement toward customer value in the PT Siba Courier Indonesia
B LITERATURE REVIEW
Customer Engagement Customer engagement (CE) is the intensity of customer participation by representatives
of the organization and through other customers in the process of collaborative knowledge exchange (Wagner and Majchrzak 200720) in Vivek (2011) Engagement refers to customersrsquo perception toward the importance or personal relevance of objects events and activities In this case Customers will acquire that a certain product has a personal relevance and relationship with them Relationship quality
The relationship quality or connections is represented through real-image of relationship and individual experience of each party in the relationship A subjective connection is obtained through positive passion energy matter and togetherness (Quinn and Dutton 2005 Heaphy amp Dutton 2008 in Vivek 2011) in which Two people involved in the connection and active participation (Heaphy and Dutton Vivek 2008267 in 2011)
In this study connection is defined as a positive emotional relationship that customers have a sense of belonging to the companies The quality of relationship construction is based on the amount of time spent in the workplace employees are significantly influenced by their relationships formed in the workplace so the connection significantly influences the function of the organization Customer value
The concept of customer value (CV) by Kotler and Keller (2009 14) is the combination of quality service price of products or services Furthermore Customer value is the dispute between the amount of value for customers and the total cost of customers and the amount of value for customers are customers expected profit of certain goods or services
According to Best in (Sumarwan et al 2010 30) the customer value is a benefit or profit obtained by customers lessened by the cost of the purchase Based on this concept customer value is derived from the economic customer and emotional benefits Economic Benefit is obtained from surplus of price and cost but not the cost of purchase which includes acquisition ownership usage maintenance repairment and disposal costs Customers Benefit is derived from the product appearance service and reputation Emotional Benefit is the overplus of the product to meet the emotional needs of the customer associated with psychological needs types of customers personality and customer personal value
C RESEARCH METHOD
The population of this study is all customers of PT Siba Courier Indonesia totaling 40 companies spread over two cities Semarang and Jakarta Because of limited number of population the total population is all designated as sample or census research Moreover it is also with the consideration that using total population as a sample will get a more representative description and minimize the error rates so that the data obtained will be close the real value The sample proposed is the companies which at least for three years have actively used services of PT Siba Courier Indonesia Then from each company it is selected two people from the owner and the manager or the other person who has the authority to make decision (the decision maker)
The data collection method is purposive sampling and the analysis techniques is performed by Partial Least Square and Sobel Test
Table 1
1st Piksi International Conference on Knowledge and Sciences 2014 Page | 12
Research Variables and Indicators No Variables Indicators Shape
1 Customer engagement is the level of customers attention to the company
Sharing (CE1)
Likert Scale 1-5
Learning (CE2) Advocating (CE3) Socialization (CE4) Co-developing (CE5)
2 Relationship quality is quality of the relationship created between customer and companies
Trust (RQ1) Commitment (RQ2) Satisfaction (RQ3)
3
Customer value is the matched value perceived by customers on the services prices of the products quality received by them
Connection with Company (CV1) Goodwill (CV2) Word of Mouth (CV3) Affective Commitment (CV4) Intent to do Business (CV5)
Data Analysis
PLS (Partial Least Square) is used to examine and test the hypothesis proposed PLS has advantages that lsquoit involves no assumptions about the population or scale of measurement (Fornell amp Bookstein 1982) and consequently it works without distributional assumptions and by nominal ordinal and interval scaled variables However one has to bear in mind that the PLS like any statistical technique also requires certain assumptions to be fulfilled Apart from the standard ones (ie the classical Gaussian linear ordinary least squares) regression models (see eg Gujarati 1995) the most important predictor of the assumption is the specification (Chin amp Newsted 1999)
D FINDINGS Based on data analysis of the study it can be explained the analysis of partial least
squares (PLS) as follows Inner PLS model results
The indicators of customer engagement consist of sharing (CE1) learning (CE2) advocating (CE3) socialization (CE4) and co-developing (CE5) The outline of the PLS model for the indicators proposed is shown in Table 2
Table 2 Test Results of Validity and Reliability of Customer Engagement Indicator Variables
No Indicator Test Validity Composite Reliability Loading T-Statistic Criteria
1 CE 1 0919 9438 valid
0876 2 CE 2 0753 5330 valid 3 CE 3 0711 4915 valid 4 CE 4 0851 7639 valid 5 CE 5 0854 6314 valid
Sources Primary data processed in 2014
Table 2 is the result of convergent validity test 5 indicators of customer engagement have loading factor value more than 05 by the T statistical value of all indicators greater than T Table by 196 so that all indicators of customer engagement can be said to be valid The order of the strongest to the weakest indicator is CE1 (sharing) CE5 (co-developing) CE4
1st Piksi International Conference on Knowledge and Sciences 2014 Page | 13
(socialization) CE2 (learning) and CE3 (advocating) Based on the composite reliability test of indicator measuring the construct it shows a satisfactory results in the amount of 0876 meaning that the construct of customer engagement can provide relatively similar results when it is measured again by the same subjects
The indicator of Relationship quality consists of three indicators namely trust (RQ1) commitment (RQ2) and satisfaction (RQ3) The results of the PLS model for the outer indicators is shown in Table 3 below
Table 3
Test Results of Validity and Reliability of Relationship Quality Indicator Variables
No Indicator Test Validity Composite Reliability Loading T-Statistic Criteria
1 RQ1 0822 4959 valid 0731 2 RQ2 0812 5508 valid
3 RQ3 0785 5318 valid
Sources Primary data were processed in 2014
Table 3 is the result of convergent validity test 3 indicators of relationship quality has a loading factor values more than 05 and the value of the T statistic is higher than the T table by 196 so that all indicators of relationship quality can be said to be valid The order of the strongest to the weakest indicator is RQ1 RQ2 and RQ3 Based on the composite reliability test of the indicators measuring construction it showes a satisfactory results in the amount of 0731 meaning that the relationship quality constructs can provide relatively similar results if it is measured again by the same subjects
The indicator of Customer value consists of 5 indicators the connection with the commpany (CV1) goodwill (CV2) word of mouth (CV3) affective commitment (CV4) and intent to do business (CV5) The result of outer model is in Table 4
Table 4 Test Results of Validity and Reliability of Customer value Indicator Variables
No Indicator Test Validity Composite Reliability Loading T-Statistic Criteria
1 CV1 0 815 9 382 valid
0860 2 CV2 0 752 6 211 valid 3 CV3 0 712 4 022 valid 4 CV4 0 886 7 349 valid 5 CV5 0 837 7 649 valid
Table 4 is the result of convergent validity test 5 indicators of customer value has a
loading factor value more than 05 and the value of statistical Tgt T Table by 196 so that all indicators of customer value can be said to be valid The order of the strongest to the weakest indicator is CV4 CV5 CV1 CV2 and CV3 Based on the composite reliability test of indicators measuring the block construct it shows a satisfactory results in the amount of 0860 meaning that the construct of customer value can provide relatively similar results if it is measured again by the same subjects Inner PLS model results
Inner models describes the relationship among latent variables based on substantive theory The results of the bootstrapping output graphs display the relationship among variables such as customer engagement relationship quality and customer value as shown in Figure 2
1st Piksi International Conference on Knowledge and Sciences 2014 Page | 14
Based on calculations in Figure 2 It is known that the direct influence of customer engagement on customer value is equal to 0491 with the indirect influence of 0984 x 0507 = 0499 It means that the indirect influence is higher than the direct Thus the relationship quality variable is the path of the relationship between the customer engagement and customer value Briefly it means that customer engagement can directly improve customer value by trying to increase the relationship quality first
Sources Primary data processed 2014 Figure 1
The relationship Model between the Customer Engagement Relationship quality and Customer value of PT Siba Courier Indonesia
Figure 1 also shows the magnitude of the determination coefficient The coefficient of determination is used to recognize how significant the influence of exogenous variables toward endogenous the higher the value of the coefficient of determination the higher the influence of exogenous variables on endogenous will be R-square value generated from the relationship between customer engagement with the relationship quality is 0969 meaning that the variation of relationship quality which can be explained by customer engagement is 969 while the remaining 31 is obtained from other variables Then R-square value of the relationship model between customer engagement relationship quality and customer value is 0988 it means that the variation of customer value that can be explained by the relationship quality and customer engagement is 988 while the remaining 12 are determined by other variables
Then the hypothesis test is performed by looking at the value of t count if tcount is higher than ttable (alpha 5 = 196) then the alternative hypothesis (H a) is accepted and H 0 is rejected and so that for the opposite Based on the PLS test the results of testing the relationship among variables can be seen in Table 9 and Figure 3
Table 5 Results of Inner Weight
No The relationship among variables Original Sample (O) T Statistics (| O Sterr |) Criteria
1 CE -gt CV 0491 2312 Significant 2 CE -gt RQ 0984 110053 Significant 3 RQ -gt CV 0507 2383 Significant
Sources Primary data processed 2014
1st Piksi International Conference on Knowledge and Sciences 2014 Page | 15
1 The first hypothesis the customer engagement significantly influences the relationship quality Based on the PLS calculations result in Table 8 testing the first hypothesis about the
influence of customer engagement on relationship quality it is obtained the value of the estimated coefficient (β) of 0984 with t statistic value of 110053 This result is much higher than t-table value which is only 196 Then it can be concluded that there is a positive significant influence on the customer engagement variable toward the relationship quality Thus the first hypothesis is accepted
2 The second hypothesis the customer engagement significantly influences the customer value Based on the PLS calculations result in Table 9 testing the second hypothesis about the
influence of customer engagement toward customer value it is obtained the value of the estimated coefficient (β) of 0491 with t statistic value of 2312 This result is higher than t-table value which is only 196 So it can be concluded that there is a positive significant influence of the customer engagement variable toward customer value Thus the second hypothesis is accepted
3 The third hypothesis relationship quality significantly influence customer value Based on the PLS calculations result in Table 9 testing the third hypothesis about the
influence of relationship quality on customer value it is obtained the value of the estimated coefficient (β) of 0507 with t statistic value of 2383 This result is higher than t-table value which is only 196 So it can be concluded that there is a positive significant influence of the relationship quality variable on customer value Thus the third hypothesis is accepted Sobel Test Results
Sobel test is conducted by testing the strength of the indirect influence of independent variables (customer engagement) toward dependent variable (customer value) through intervening variable (relationship quality) This test is done by Online Sobel Test Calculator for the Significance of Mediation by entering the regression coefficient and standard error values of the customer engagement variables to the relationship quality and the regression coefficient and standard error values of the relationship quality variable to customer value in which it gets the result as follows
Figure 4
Sobel Test Results Sobel test shown in Figure 4 shows the Sobel test statistic value of 23797 with a one-
side significance value of 0009 because the significance value is lt005 therefore it can be said that the relationship quality is the intervening variable of the correlation of customer engagement and customer value
E DISCUSSION In this study Customer engagement positively influences relationship quality it means
that the better the customer engagement the better the relationship quality between the customer and the company By involving customers such as Inviting them to share about the things to improve the performance of the company or promote cooperation between companies and customers (share) inviting customers to know more about the company (learning) motivating customers to inform others about the companys products or services (advocating) motivating customers to promote products services of the company (socialization) and motivating customers to contribute ideas that might contribute to the improvement of performance and service of the companies (co-developing) then it will be able to create a good quality relationships between the companies and customers
1st Piksi International Conference on Knowledge and Sciences 2014 Page | 16
This is in line with the findings by Saks (2006) which states that the employee engagement has been implemented as a means to explore and explain the organizational commitment and behaviors of the members and also applied as a predictor of customer ratings toward the companies Furthermore the finding of the study is also in accordance with the opinion of Salanova et al (2005) that engagement has also been recognized as a way to improve morale cohesion and psychological relationship between the customer and the company or organization
The quality of a good relationship is manifested by the growth of customer trust the presence of customer commitment to always use the companys services and customer satisfaction with the overall service provided by the company
Customer engagement in this study positively contribute to customer value the better the company does customer engagement efforts it will contribute to higher customer value Involving customers such as inviting them to share about the things to improve the performance of the company or promote cooperation between companies and customers (share) inviting customers to know more about the company (learning) motivating the customer to inform others about product and service of companies (advocating) motivating customers to promote products services company (socialization) and motivating customers to contribute ideas to improve the performance and service companies (co-developing) will be able to create high customer value
The studys findings are in line with the study conducted by Li and Dant in Vivek (2011) which concludes that the intensity of customer engagement will be positively related to the value received by customers By the time customers are treated very well and considered as part of the company it will raise the principle of reciprocity in which the customer will give the good attitude as good as what they have received by the company (Bagozzidalam Vivek 2011)
Companies Interaction to customers via initiative engagement strategies will make the reciprocity norm appear to customersrsquo engagement If the company successfully engage customers customers will recognize the benefits received and give return values to indicate behavioral intentions In the return of value received customers will have a good faith and affective commitment to the organization and may be willing to develop a strong relationship with the organization
Moreover in this study relationship quality give positive influence on customer value The better relationship quality the better the customer value will be It means that relationship quality is one of the important factors to increase customer value Relationship quality is needed to drive steer cultivate and maintain customer behavior towards the achievement of better corporate performance
Relationship quality in this study also serves as a mediator of the influence of customer engagement toward customer value Customer value will be stronger with the role of relationship quality in it Starting from involving customers by sharing it will create a good relationship between the company and customers Then One of the good form of relationship is the emergence of self-confidence of the customers toward the the company Based on these good relationships created customers will give a positive assessment to the company by the form of manifesting customer awareness of the companys survival (affective commitment) which in this study seems to show the highest loading value of all indicators of customer value
Empirically findings of this study support the finding by John (2008) that concludes that the success in fostering good relationship with customers is actually a beneficial thing that can bring profit for both parties The relationship created between the company and the customer will make communication better
After feeling satisfied and having created a good relationship then the customers will tell the companyrsquos advantage to others The information spread by the customer can build a good image about the company and it can bring in new clients or customers for the companyBy a good relationship not only company but also customers will get profits and advantages Benefits and advantages gained by customers also vary eg special price given by the company and get extra service for being a loyal customer
F CONCLUSION Based on the analysis and discussion in this study it obtains a general conclusion as
follows
1st Piksi International Conference on Knowledge and Sciences 2014 Page | 17
1) Customer engagement have a positive significant influence on relationship quality It means that the better the customer engagement the better the relationship quality will be and the increased sharing programs between companies and customers is a way that can be used to improve customer engagement and gain trust of customers to be better 2) Customer engagement have a positive significant influence on customer value It means that the better the customer engagement the better the customer value will be and the improvement of sharing programs between companies and customers is a way that can be used to improve customer engagement and to establish customer awareness of the companiesrsquo survival company (affective commitment) And 3) Relationship quality have a positive significant influence on customer value it means that the better the relationship quality the better the customer value and establishing trust of the customer is a way to improve the quality of relationships and increase customer awareness of companies survival (affective commitment)
This study has limitations that is the study results can not be generalized beyond the sample of the study because the respondents used is only limited to customers of PT Siba Courier Indonesia representing Semarang and Jakarta city Thus to conduct similar study involving all customers of PT Siba Courier Indonesia spreading in many cities around Indonesia still need to be considered
BIBLIOGRAPHY Brodie JR Ilic A Hollebeek L 2011 Consumer engagement in a virtual brand community An
exploratory analysis Journal of Business Research xxx (2011) xxxndashxxx Cateora Philip R Graham John L 2007 Pemasaran Internasional 13th Edition Jakarta Salemba
Empat Chan S 2003 Relationship Marketing Inovasi Pemasaran yang Membuat Pelanggan Bertekuk
Lutut Jakarta Penerbit PT Gramedia Pustaka Utama Copulsky J R and M J Wolf 1990 Relationship Marketing Positioning for the Future The
Journal of Business Strategy Fandy Tjiptono 2005 Pemasaran Jasa 1st Edition Malang Bayu Media Publishing Fuad Masrsquoud 2004 Survai Diagnosis Organisasional Konsep dan Aplikasi Semarang Diponegoro
University Press Groumlnroos C 1994 ldquoFrom Marketing Mix to Relationship Marketing Towards a Paradigm Shift in
Marketingrdquo Management Decision Vol 32 No 2 pp 4-20 Hollebeek LD 2009 Demystifying Customer Engagement Toward the Development of a
Conceptual Model AMZNAC 2009 1-9 Imam Ghozali 2006 Structural Equation Modeling Metode Alternatif denganPLS (Kedua ed)
Semarang Diponegoro University Press Kotler Philip amp Keller Kevin Lane 2009 Manajemen Pemasaran Edisi 13 Jilid 2 Jakarta PT
Indeks Kotler Philip 2007 Manajemen Pemasaran Analisis Perencanaan Pengendalian Prentice Hall
Edisi Bahasa Indonesia Jakarta Salemba Empat Kumar V Lerzan A Bas D Rajkumar V Thorsten W dan Sebastian T 2010 Undervalued or
Overvalued Customers Capturing Total Customer engagement Value Journal of Service Research 13(3) 297-310
MacInnis dan Mello Jefrey A 2001 StrategicHuman Resources Management International Edition South Western Publishing Ohio
Mowen John C dan Minor M 2002 Perilaku Konsumen Jilid 1 Edisi Kelima (terjemahan) Jakarta Erlangga
Nammir Darman Sulaiman Sadiq Bayar Mohamed Rasheed Marane Aree Mohammed Ali 2012 Determine the Role of Customer engagement on Relationship Quality and Relationship Performance European Journal of Business and Management wwwiisteorgISSN 2222-1905 (Paper) ISSN 2222-2839 (Online) Vol 4 No11 2012
Peter Paul J and Olson Jerry C 2002Perilaku Konsumen dan StrategiPemasaran Edisi ke Empat (Terjemahan) Jakarta Penerbit Erlangga
1st Piksi International Conference on Knowledge and Sciences 2014 Page | 18
Rustono 2010 Faktor-faktor yang Mempengaruhi Implementasi Customer Relationship Mangement (CRM) untuk Meningkatkan Loyalitas PelangganRagamJurnal Pengembangan Humaniora Vol 10 No 3 Desember 2010 153-160
Ryals L and S Knox 2001 ldquoCross-Functional Issue in the Implementation of Relationship Marketing Through Customer relationship Managementrdquo European Management Journal Vol 19 No 5 pp 534-542
Setiadi J Nugroho 2005 Perilaku Konsumen Jakarta Kencana Sugiyono 2008 Metode Penelitian Kuantitatif Kualitatif dan RampD Bandung Alfabeta Tjahyadi RA 2010Membangun Hubungan Jangka Panjang Pelanggan Melalui Relationship
Marketing httpmajourmaranathaeduindexphpjurnal-manajemenarticleview178 Vivek SD 2011 A Scale Of Consumer Engagement Disertasi Department of Management and
Marketing in the Graduate School of The University of Alabama Yahya Y 2008 Pengaruh Customer Relationship Management (CRM) dalam Meningkatkan loyalitas
Pelanggan httpfebudiluhuracidwp-contentuploads201105Pengaruh-Customer-Relationship-Management-Dalam-Meningkatka-Loyalitas-Pelanggan-Yohanes-Yahyapdf
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1st Piksi International Conference on Knowledge and Sciences 2014 Page | 9
THE ROLE OF DYNAMIC MODEL OF CUSTOMER ENGAGEMENT TOWARD CUSTOMER VALUE
Ardian Adhiatma
M A Irfan Rahmana Dept of Management Faculty of Economics UNISSULA Semarang Indonesia
E-mail ardianunissulaacid irfanrahmanayahoocom
ABSTRACT The added value of the company at this time can not always be built only through customer satisfaction but more to factors such as communication coaching and sharing of the company as stated in the customer engagement The purpose of this study is to know the role of dynamic models of customer engagement toward customer value Explanatory research is conducted on 50 owners managers and authorized personnel in corporate decision The sampling used is purposive sampling Furthermore there are three variables involved in this study those are customer engagement relationship quality and customer value The data of these three variables is obtained from questionnaires Partial least squares analysis with smart PLS 20 is used to determine the correlation within variables Customer engagement shows a positive results and significant influence to customer value either directly or indirectly through the relationship quality in which the influence of indirect coefficient (0499) is higher than the direct coefficient (0491) So it can be concluded that customer engagement has a role in improving customer value through relationship quality
Keywords customer engagement relationship quality customer value
1st Piksi International Conference on Knowledge and Sciences 2014 Page | 10
A INTRODUCTION Nowadays Challenges in the business field have become increasingly tight and
complicated because the presence of dynamical complexities in the market values in which the needs and demands of customers as main stakeholders have changed massively The change of customers condition in demand occur because the presences of information and choices have grown rapidly Not only self-needs experiencing a change but also the ways customers access the needs also change from time to time In the past customer satisfactions were mostly determined by the quality of productsservices pricing and after-sales service Briefly its only three aspects that got too much attention marketers only focused in improving the quality of products pressing price efficiency to be affordable and opening outlets of after sales service Yet in the present day these aspects are considered not meet expectations customers want more of these aspects as a prerequisite for their satisfaction In conclusion it means that the needs of customers expectations has changed so that the programs and approaches to satisfy customers should also be conducted (Rustono 2010)
The phenomena as mentioned above also occur in courier Industries The rapid competition of courier industries in Indonesia is not only caused by globalization but also customers awareness of price and high demands The rapid growth of communication and technology also contribute to the increase of competition intensity since it gives customers access to more information about the wide range of products or services offered These conditions lead customers to have more choices in spending their money
The added value of the company at this time can not always be built only through customer satisfaction but also more to other factors such as communication coaching and sharing of the company as stated in the customer engagement Customer engagement is the peak of the companys relationship with customers to survive and thrive to launch new products to pay more attention into competitor products to sell more products from competitors Besides that the companies also have to implement Customer Relationship Management whereby customer engagement is one of its components At the level of customer engagement relationship built has already been a combination of rational and emotional aspects The quality of this relationship has reached the level of the inner closeness and long-term dimension (Shevlin 2011 in Vivek 2011)
The concept of customer engagement has also been frequently considered as a potential superior strength to predict and to explain the context of the service retention and customer loyalty (Bowden 2009 in Hollebeek 2009) Furthermore Customer engagement is a promising new concept and expected to exceed the contribution given by traditional relational construction including perceived quality customer engagement and satisfaction in explaining and predicting customer value (Hollebeek 2009) Customer value is defined as the emotional bond that exists between customers and manufacturers because the customers use the products and services of the company and then find that the product or service give them additional value (Tjiptono 2005)
The study by Hollebeek (2009) concludes that the customers engagement improve loyalty satisfaction empowerment connection emotional bonding trust and commitment Furthermore Kumar et al (2010) emphasizes that customers can be involved in creating value for the company in various ways first the customer lifetime value (customer buying behavior) second the customer referrals value (related to referral incentives of new customers) third customer influence value (related to customers behavior to influence other customers which increases the acquisition retention and share of wallet through communication among customers and existing prospects) and fourth is the customer knowledge value (surplus for the company with feedback from customers) Customer engagemet value (CEV) provides a comprehensive framework that can ultimately lead to more efficient marketing strategies that enable a higher long-term contribution to customers The study by Vivek (2011) proves that customers engagement in turn can positively influence the companys relationship with customers and raises good faith and intention to do business with the company
The capability of Customer engagement in predicting customer value has been adopted as a marketing strategy by PT Siba Courier Indonesia This strategy is implemented because until this time if it is compared with its competitors PT Siba Courier Indonesia is far behind from their competitors in terms of the availability of fleet infrastructure and age In the future PT Siba Courier Indonesia is predicted to be abandoned by its customers if only rely on the availability of
1st Piksi International Conference on Knowledge and Sciences 2014 Page | 11
limited facilities and infrastructure The fact that the customers of PT Siba Courier Indonesia both in Jakarta and Semarang are still loyal to use the services of this company and even if they keep patient waiting queue to obtain service because the company have overload in order delivery If in general to improve the competitiveness and to maintain the survival of the company efforts are made through internal factors (improvement of service quality provision of infrastructure and facilities services technological advances etc) in this study exactly at PT Siba Courier Indonesia the related cases are not found Therefore it is interesting to do a more focused study on the role of dynamic models of customer engagement toward customer value in the PT Siba Courier Indonesia
B LITERATURE REVIEW
Customer Engagement Customer engagement (CE) is the intensity of customer participation by representatives
of the organization and through other customers in the process of collaborative knowledge exchange (Wagner and Majchrzak 200720) in Vivek (2011) Engagement refers to customersrsquo perception toward the importance or personal relevance of objects events and activities In this case Customers will acquire that a certain product has a personal relevance and relationship with them Relationship quality
The relationship quality or connections is represented through real-image of relationship and individual experience of each party in the relationship A subjective connection is obtained through positive passion energy matter and togetherness (Quinn and Dutton 2005 Heaphy amp Dutton 2008 in Vivek 2011) in which Two people involved in the connection and active participation (Heaphy and Dutton Vivek 2008267 in 2011)
In this study connection is defined as a positive emotional relationship that customers have a sense of belonging to the companies The quality of relationship construction is based on the amount of time spent in the workplace employees are significantly influenced by their relationships formed in the workplace so the connection significantly influences the function of the organization Customer value
The concept of customer value (CV) by Kotler and Keller (2009 14) is the combination of quality service price of products or services Furthermore Customer value is the dispute between the amount of value for customers and the total cost of customers and the amount of value for customers are customers expected profit of certain goods or services
According to Best in (Sumarwan et al 2010 30) the customer value is a benefit or profit obtained by customers lessened by the cost of the purchase Based on this concept customer value is derived from the economic customer and emotional benefits Economic Benefit is obtained from surplus of price and cost but not the cost of purchase which includes acquisition ownership usage maintenance repairment and disposal costs Customers Benefit is derived from the product appearance service and reputation Emotional Benefit is the overplus of the product to meet the emotional needs of the customer associated with psychological needs types of customers personality and customer personal value
C RESEARCH METHOD
The population of this study is all customers of PT Siba Courier Indonesia totaling 40 companies spread over two cities Semarang and Jakarta Because of limited number of population the total population is all designated as sample or census research Moreover it is also with the consideration that using total population as a sample will get a more representative description and minimize the error rates so that the data obtained will be close the real value The sample proposed is the companies which at least for three years have actively used services of PT Siba Courier Indonesia Then from each company it is selected two people from the owner and the manager or the other person who has the authority to make decision (the decision maker)
The data collection method is purposive sampling and the analysis techniques is performed by Partial Least Square and Sobel Test
Table 1
1st Piksi International Conference on Knowledge and Sciences 2014 Page | 12
Research Variables and Indicators No Variables Indicators Shape
1 Customer engagement is the level of customers attention to the company
Sharing (CE1)
Likert Scale 1-5
Learning (CE2) Advocating (CE3) Socialization (CE4) Co-developing (CE5)
2 Relationship quality is quality of the relationship created between customer and companies
Trust (RQ1) Commitment (RQ2) Satisfaction (RQ3)
3
Customer value is the matched value perceived by customers on the services prices of the products quality received by them
Connection with Company (CV1) Goodwill (CV2) Word of Mouth (CV3) Affective Commitment (CV4) Intent to do Business (CV5)
Data Analysis
PLS (Partial Least Square) is used to examine and test the hypothesis proposed PLS has advantages that lsquoit involves no assumptions about the population or scale of measurement (Fornell amp Bookstein 1982) and consequently it works without distributional assumptions and by nominal ordinal and interval scaled variables However one has to bear in mind that the PLS like any statistical technique also requires certain assumptions to be fulfilled Apart from the standard ones (ie the classical Gaussian linear ordinary least squares) regression models (see eg Gujarati 1995) the most important predictor of the assumption is the specification (Chin amp Newsted 1999)
D FINDINGS Based on data analysis of the study it can be explained the analysis of partial least
squares (PLS) as follows Inner PLS model results
The indicators of customer engagement consist of sharing (CE1) learning (CE2) advocating (CE3) socialization (CE4) and co-developing (CE5) The outline of the PLS model for the indicators proposed is shown in Table 2
Table 2 Test Results of Validity and Reliability of Customer Engagement Indicator Variables
No Indicator Test Validity Composite Reliability Loading T-Statistic Criteria
1 CE 1 0919 9438 valid
0876 2 CE 2 0753 5330 valid 3 CE 3 0711 4915 valid 4 CE 4 0851 7639 valid 5 CE 5 0854 6314 valid
Sources Primary data processed in 2014
Table 2 is the result of convergent validity test 5 indicators of customer engagement have loading factor value more than 05 by the T statistical value of all indicators greater than T Table by 196 so that all indicators of customer engagement can be said to be valid The order of the strongest to the weakest indicator is CE1 (sharing) CE5 (co-developing) CE4
1st Piksi International Conference on Knowledge and Sciences 2014 Page | 13
(socialization) CE2 (learning) and CE3 (advocating) Based on the composite reliability test of indicator measuring the construct it shows a satisfactory results in the amount of 0876 meaning that the construct of customer engagement can provide relatively similar results when it is measured again by the same subjects
The indicator of Relationship quality consists of three indicators namely trust (RQ1) commitment (RQ2) and satisfaction (RQ3) The results of the PLS model for the outer indicators is shown in Table 3 below
Table 3
Test Results of Validity and Reliability of Relationship Quality Indicator Variables
No Indicator Test Validity Composite Reliability Loading T-Statistic Criteria
1 RQ1 0822 4959 valid 0731 2 RQ2 0812 5508 valid
3 RQ3 0785 5318 valid
Sources Primary data were processed in 2014
Table 3 is the result of convergent validity test 3 indicators of relationship quality has a loading factor values more than 05 and the value of the T statistic is higher than the T table by 196 so that all indicators of relationship quality can be said to be valid The order of the strongest to the weakest indicator is RQ1 RQ2 and RQ3 Based on the composite reliability test of the indicators measuring construction it showes a satisfactory results in the amount of 0731 meaning that the relationship quality constructs can provide relatively similar results if it is measured again by the same subjects
The indicator of Customer value consists of 5 indicators the connection with the commpany (CV1) goodwill (CV2) word of mouth (CV3) affective commitment (CV4) and intent to do business (CV5) The result of outer model is in Table 4
Table 4 Test Results of Validity and Reliability of Customer value Indicator Variables
No Indicator Test Validity Composite Reliability Loading T-Statistic Criteria
1 CV1 0 815 9 382 valid
0860 2 CV2 0 752 6 211 valid 3 CV3 0 712 4 022 valid 4 CV4 0 886 7 349 valid 5 CV5 0 837 7 649 valid
Table 4 is the result of convergent validity test 5 indicators of customer value has a
loading factor value more than 05 and the value of statistical Tgt T Table by 196 so that all indicators of customer value can be said to be valid The order of the strongest to the weakest indicator is CV4 CV5 CV1 CV2 and CV3 Based on the composite reliability test of indicators measuring the block construct it shows a satisfactory results in the amount of 0860 meaning that the construct of customer value can provide relatively similar results if it is measured again by the same subjects Inner PLS model results
Inner models describes the relationship among latent variables based on substantive theory The results of the bootstrapping output graphs display the relationship among variables such as customer engagement relationship quality and customer value as shown in Figure 2
1st Piksi International Conference on Knowledge and Sciences 2014 Page | 14
Based on calculations in Figure 2 It is known that the direct influence of customer engagement on customer value is equal to 0491 with the indirect influence of 0984 x 0507 = 0499 It means that the indirect influence is higher than the direct Thus the relationship quality variable is the path of the relationship between the customer engagement and customer value Briefly it means that customer engagement can directly improve customer value by trying to increase the relationship quality first
Sources Primary data processed 2014 Figure 1
The relationship Model between the Customer Engagement Relationship quality and Customer value of PT Siba Courier Indonesia
Figure 1 also shows the magnitude of the determination coefficient The coefficient of determination is used to recognize how significant the influence of exogenous variables toward endogenous the higher the value of the coefficient of determination the higher the influence of exogenous variables on endogenous will be R-square value generated from the relationship between customer engagement with the relationship quality is 0969 meaning that the variation of relationship quality which can be explained by customer engagement is 969 while the remaining 31 is obtained from other variables Then R-square value of the relationship model between customer engagement relationship quality and customer value is 0988 it means that the variation of customer value that can be explained by the relationship quality and customer engagement is 988 while the remaining 12 are determined by other variables
Then the hypothesis test is performed by looking at the value of t count if tcount is higher than ttable (alpha 5 = 196) then the alternative hypothesis (H a) is accepted and H 0 is rejected and so that for the opposite Based on the PLS test the results of testing the relationship among variables can be seen in Table 9 and Figure 3
Table 5 Results of Inner Weight
No The relationship among variables Original Sample (O) T Statistics (| O Sterr |) Criteria
1 CE -gt CV 0491 2312 Significant 2 CE -gt RQ 0984 110053 Significant 3 RQ -gt CV 0507 2383 Significant
Sources Primary data processed 2014
1st Piksi International Conference on Knowledge and Sciences 2014 Page | 15
1 The first hypothesis the customer engagement significantly influences the relationship quality Based on the PLS calculations result in Table 8 testing the first hypothesis about the
influence of customer engagement on relationship quality it is obtained the value of the estimated coefficient (β) of 0984 with t statistic value of 110053 This result is much higher than t-table value which is only 196 Then it can be concluded that there is a positive significant influence on the customer engagement variable toward the relationship quality Thus the first hypothesis is accepted
2 The second hypothesis the customer engagement significantly influences the customer value Based on the PLS calculations result in Table 9 testing the second hypothesis about the
influence of customer engagement toward customer value it is obtained the value of the estimated coefficient (β) of 0491 with t statistic value of 2312 This result is higher than t-table value which is only 196 So it can be concluded that there is a positive significant influence of the customer engagement variable toward customer value Thus the second hypothesis is accepted
3 The third hypothesis relationship quality significantly influence customer value Based on the PLS calculations result in Table 9 testing the third hypothesis about the
influence of relationship quality on customer value it is obtained the value of the estimated coefficient (β) of 0507 with t statistic value of 2383 This result is higher than t-table value which is only 196 So it can be concluded that there is a positive significant influence of the relationship quality variable on customer value Thus the third hypothesis is accepted Sobel Test Results
Sobel test is conducted by testing the strength of the indirect influence of independent variables (customer engagement) toward dependent variable (customer value) through intervening variable (relationship quality) This test is done by Online Sobel Test Calculator for the Significance of Mediation by entering the regression coefficient and standard error values of the customer engagement variables to the relationship quality and the regression coefficient and standard error values of the relationship quality variable to customer value in which it gets the result as follows
Figure 4
Sobel Test Results Sobel test shown in Figure 4 shows the Sobel test statistic value of 23797 with a one-
side significance value of 0009 because the significance value is lt005 therefore it can be said that the relationship quality is the intervening variable of the correlation of customer engagement and customer value
E DISCUSSION In this study Customer engagement positively influences relationship quality it means
that the better the customer engagement the better the relationship quality between the customer and the company By involving customers such as Inviting them to share about the things to improve the performance of the company or promote cooperation between companies and customers (share) inviting customers to know more about the company (learning) motivating customers to inform others about the companys products or services (advocating) motivating customers to promote products services of the company (socialization) and motivating customers to contribute ideas that might contribute to the improvement of performance and service of the companies (co-developing) then it will be able to create a good quality relationships between the companies and customers
1st Piksi International Conference on Knowledge and Sciences 2014 Page | 16
This is in line with the findings by Saks (2006) which states that the employee engagement has been implemented as a means to explore and explain the organizational commitment and behaviors of the members and also applied as a predictor of customer ratings toward the companies Furthermore the finding of the study is also in accordance with the opinion of Salanova et al (2005) that engagement has also been recognized as a way to improve morale cohesion and psychological relationship between the customer and the company or organization
The quality of a good relationship is manifested by the growth of customer trust the presence of customer commitment to always use the companys services and customer satisfaction with the overall service provided by the company
Customer engagement in this study positively contribute to customer value the better the company does customer engagement efforts it will contribute to higher customer value Involving customers such as inviting them to share about the things to improve the performance of the company or promote cooperation between companies and customers (share) inviting customers to know more about the company (learning) motivating the customer to inform others about product and service of companies (advocating) motivating customers to promote products services company (socialization) and motivating customers to contribute ideas to improve the performance and service companies (co-developing) will be able to create high customer value
The studys findings are in line with the study conducted by Li and Dant in Vivek (2011) which concludes that the intensity of customer engagement will be positively related to the value received by customers By the time customers are treated very well and considered as part of the company it will raise the principle of reciprocity in which the customer will give the good attitude as good as what they have received by the company (Bagozzidalam Vivek 2011)
Companies Interaction to customers via initiative engagement strategies will make the reciprocity norm appear to customersrsquo engagement If the company successfully engage customers customers will recognize the benefits received and give return values to indicate behavioral intentions In the return of value received customers will have a good faith and affective commitment to the organization and may be willing to develop a strong relationship with the organization
Moreover in this study relationship quality give positive influence on customer value The better relationship quality the better the customer value will be It means that relationship quality is one of the important factors to increase customer value Relationship quality is needed to drive steer cultivate and maintain customer behavior towards the achievement of better corporate performance
Relationship quality in this study also serves as a mediator of the influence of customer engagement toward customer value Customer value will be stronger with the role of relationship quality in it Starting from involving customers by sharing it will create a good relationship between the company and customers Then One of the good form of relationship is the emergence of self-confidence of the customers toward the the company Based on these good relationships created customers will give a positive assessment to the company by the form of manifesting customer awareness of the companys survival (affective commitment) which in this study seems to show the highest loading value of all indicators of customer value
Empirically findings of this study support the finding by John (2008) that concludes that the success in fostering good relationship with customers is actually a beneficial thing that can bring profit for both parties The relationship created between the company and the customer will make communication better
After feeling satisfied and having created a good relationship then the customers will tell the companyrsquos advantage to others The information spread by the customer can build a good image about the company and it can bring in new clients or customers for the companyBy a good relationship not only company but also customers will get profits and advantages Benefits and advantages gained by customers also vary eg special price given by the company and get extra service for being a loyal customer
F CONCLUSION Based on the analysis and discussion in this study it obtains a general conclusion as
follows
1st Piksi International Conference on Knowledge and Sciences 2014 Page | 17
1) Customer engagement have a positive significant influence on relationship quality It means that the better the customer engagement the better the relationship quality will be and the increased sharing programs between companies and customers is a way that can be used to improve customer engagement and gain trust of customers to be better 2) Customer engagement have a positive significant influence on customer value It means that the better the customer engagement the better the customer value will be and the improvement of sharing programs between companies and customers is a way that can be used to improve customer engagement and to establish customer awareness of the companiesrsquo survival company (affective commitment) And 3) Relationship quality have a positive significant influence on customer value it means that the better the relationship quality the better the customer value and establishing trust of the customer is a way to improve the quality of relationships and increase customer awareness of companies survival (affective commitment)
This study has limitations that is the study results can not be generalized beyond the sample of the study because the respondents used is only limited to customers of PT Siba Courier Indonesia representing Semarang and Jakarta city Thus to conduct similar study involving all customers of PT Siba Courier Indonesia spreading in many cities around Indonesia still need to be considered
BIBLIOGRAPHY Brodie JR Ilic A Hollebeek L 2011 Consumer engagement in a virtual brand community An
exploratory analysis Journal of Business Research xxx (2011) xxxndashxxx Cateora Philip R Graham John L 2007 Pemasaran Internasional 13th Edition Jakarta Salemba
Empat Chan S 2003 Relationship Marketing Inovasi Pemasaran yang Membuat Pelanggan Bertekuk
Lutut Jakarta Penerbit PT Gramedia Pustaka Utama Copulsky J R and M J Wolf 1990 Relationship Marketing Positioning for the Future The
Journal of Business Strategy Fandy Tjiptono 2005 Pemasaran Jasa 1st Edition Malang Bayu Media Publishing Fuad Masrsquoud 2004 Survai Diagnosis Organisasional Konsep dan Aplikasi Semarang Diponegoro
University Press Groumlnroos C 1994 ldquoFrom Marketing Mix to Relationship Marketing Towards a Paradigm Shift in
Marketingrdquo Management Decision Vol 32 No 2 pp 4-20 Hollebeek LD 2009 Demystifying Customer Engagement Toward the Development of a
Conceptual Model AMZNAC 2009 1-9 Imam Ghozali 2006 Structural Equation Modeling Metode Alternatif denganPLS (Kedua ed)
Semarang Diponegoro University Press Kotler Philip amp Keller Kevin Lane 2009 Manajemen Pemasaran Edisi 13 Jilid 2 Jakarta PT
Indeks Kotler Philip 2007 Manajemen Pemasaran Analisis Perencanaan Pengendalian Prentice Hall
Edisi Bahasa Indonesia Jakarta Salemba Empat Kumar V Lerzan A Bas D Rajkumar V Thorsten W dan Sebastian T 2010 Undervalued or
Overvalued Customers Capturing Total Customer engagement Value Journal of Service Research 13(3) 297-310
MacInnis dan Mello Jefrey A 2001 StrategicHuman Resources Management International Edition South Western Publishing Ohio
Mowen John C dan Minor M 2002 Perilaku Konsumen Jilid 1 Edisi Kelima (terjemahan) Jakarta Erlangga
Nammir Darman Sulaiman Sadiq Bayar Mohamed Rasheed Marane Aree Mohammed Ali 2012 Determine the Role of Customer engagement on Relationship Quality and Relationship Performance European Journal of Business and Management wwwiisteorgISSN 2222-1905 (Paper) ISSN 2222-2839 (Online) Vol 4 No11 2012
Peter Paul J and Olson Jerry C 2002Perilaku Konsumen dan StrategiPemasaran Edisi ke Empat (Terjemahan) Jakarta Penerbit Erlangga
1st Piksi International Conference on Knowledge and Sciences 2014 Page | 18
Rustono 2010 Faktor-faktor yang Mempengaruhi Implementasi Customer Relationship Mangement (CRM) untuk Meningkatkan Loyalitas PelangganRagamJurnal Pengembangan Humaniora Vol 10 No 3 Desember 2010 153-160
Ryals L and S Knox 2001 ldquoCross-Functional Issue in the Implementation of Relationship Marketing Through Customer relationship Managementrdquo European Management Journal Vol 19 No 5 pp 534-542
Setiadi J Nugroho 2005 Perilaku Konsumen Jakarta Kencana Sugiyono 2008 Metode Penelitian Kuantitatif Kualitatif dan RampD Bandung Alfabeta Tjahyadi RA 2010Membangun Hubungan Jangka Panjang Pelanggan Melalui Relationship
Marketing httpmajourmaranathaeduindexphpjurnal-manajemenarticleview178 Vivek SD 2011 A Scale Of Consumer Engagement Disertasi Department of Management and
Marketing in the Graduate School of The University of Alabama Yahya Y 2008 Pengaruh Customer Relationship Management (CRM) dalam Meningkatkan loyalitas
Pelanggan httpfebudiluhuracidwp-contentuploads201105Pengaruh-Customer-Relationship-Management-Dalam-Meningkatka-Loyalitas-Pelanggan-Yohanes-Yahyapdf
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126 Endang Khoirunn
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RELATEO INFORMATI ON SOURC ES ON REPRODUCTIVE HEALTH Akad emi Keb ida nan PR EPAREDN ESSDEALIN G WITH
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1st Piksi International Conference on Knowledge and Sciences 2014 Page | 9
THE ROLE OF DYNAMIC MODEL OF CUSTOMER ENGAGEMENT TOWARD CUSTOMER VALUE
Ardian Adhiatma
M A Irfan Rahmana Dept of Management Faculty of Economics UNISSULA Semarang Indonesia
E-mail ardianunissulaacid irfanrahmanayahoocom
ABSTRACT The added value of the company at this time can not always be built only through customer satisfaction but more to factors such as communication coaching and sharing of the company as stated in the customer engagement The purpose of this study is to know the role of dynamic models of customer engagement toward customer value Explanatory research is conducted on 50 owners managers and authorized personnel in corporate decision The sampling used is purposive sampling Furthermore there are three variables involved in this study those are customer engagement relationship quality and customer value The data of these three variables is obtained from questionnaires Partial least squares analysis with smart PLS 20 is used to determine the correlation within variables Customer engagement shows a positive results and significant influence to customer value either directly or indirectly through the relationship quality in which the influence of indirect coefficient (0499) is higher than the direct coefficient (0491) So it can be concluded that customer engagement has a role in improving customer value through relationship quality
Keywords customer engagement relationship quality customer value
1st Piksi International Conference on Knowledge and Sciences 2014 Page | 10
A INTRODUCTION Nowadays Challenges in the business field have become increasingly tight and
complicated because the presence of dynamical complexities in the market values in which the needs and demands of customers as main stakeholders have changed massively The change of customers condition in demand occur because the presences of information and choices have grown rapidly Not only self-needs experiencing a change but also the ways customers access the needs also change from time to time In the past customer satisfactions were mostly determined by the quality of productsservices pricing and after-sales service Briefly its only three aspects that got too much attention marketers only focused in improving the quality of products pressing price efficiency to be affordable and opening outlets of after sales service Yet in the present day these aspects are considered not meet expectations customers want more of these aspects as a prerequisite for their satisfaction In conclusion it means that the needs of customers expectations has changed so that the programs and approaches to satisfy customers should also be conducted (Rustono 2010)
The phenomena as mentioned above also occur in courier Industries The rapid competition of courier industries in Indonesia is not only caused by globalization but also customers awareness of price and high demands The rapid growth of communication and technology also contribute to the increase of competition intensity since it gives customers access to more information about the wide range of products or services offered These conditions lead customers to have more choices in spending their money
The added value of the company at this time can not always be built only through customer satisfaction but also more to other factors such as communication coaching and sharing of the company as stated in the customer engagement Customer engagement is the peak of the companys relationship with customers to survive and thrive to launch new products to pay more attention into competitor products to sell more products from competitors Besides that the companies also have to implement Customer Relationship Management whereby customer engagement is one of its components At the level of customer engagement relationship built has already been a combination of rational and emotional aspects The quality of this relationship has reached the level of the inner closeness and long-term dimension (Shevlin 2011 in Vivek 2011)
The concept of customer engagement has also been frequently considered as a potential superior strength to predict and to explain the context of the service retention and customer loyalty (Bowden 2009 in Hollebeek 2009) Furthermore Customer engagement is a promising new concept and expected to exceed the contribution given by traditional relational construction including perceived quality customer engagement and satisfaction in explaining and predicting customer value (Hollebeek 2009) Customer value is defined as the emotional bond that exists between customers and manufacturers because the customers use the products and services of the company and then find that the product or service give them additional value (Tjiptono 2005)
The study by Hollebeek (2009) concludes that the customers engagement improve loyalty satisfaction empowerment connection emotional bonding trust and commitment Furthermore Kumar et al (2010) emphasizes that customers can be involved in creating value for the company in various ways first the customer lifetime value (customer buying behavior) second the customer referrals value (related to referral incentives of new customers) third customer influence value (related to customers behavior to influence other customers which increases the acquisition retention and share of wallet through communication among customers and existing prospects) and fourth is the customer knowledge value (surplus for the company with feedback from customers) Customer engagemet value (CEV) provides a comprehensive framework that can ultimately lead to more efficient marketing strategies that enable a higher long-term contribution to customers The study by Vivek (2011) proves that customers engagement in turn can positively influence the companys relationship with customers and raises good faith and intention to do business with the company
The capability of Customer engagement in predicting customer value has been adopted as a marketing strategy by PT Siba Courier Indonesia This strategy is implemented because until this time if it is compared with its competitors PT Siba Courier Indonesia is far behind from their competitors in terms of the availability of fleet infrastructure and age In the future PT Siba Courier Indonesia is predicted to be abandoned by its customers if only rely on the availability of
1st Piksi International Conference on Knowledge and Sciences 2014 Page | 11
limited facilities and infrastructure The fact that the customers of PT Siba Courier Indonesia both in Jakarta and Semarang are still loyal to use the services of this company and even if they keep patient waiting queue to obtain service because the company have overload in order delivery If in general to improve the competitiveness and to maintain the survival of the company efforts are made through internal factors (improvement of service quality provision of infrastructure and facilities services technological advances etc) in this study exactly at PT Siba Courier Indonesia the related cases are not found Therefore it is interesting to do a more focused study on the role of dynamic models of customer engagement toward customer value in the PT Siba Courier Indonesia
B LITERATURE REVIEW
Customer Engagement Customer engagement (CE) is the intensity of customer participation by representatives
of the organization and through other customers in the process of collaborative knowledge exchange (Wagner and Majchrzak 200720) in Vivek (2011) Engagement refers to customersrsquo perception toward the importance or personal relevance of objects events and activities In this case Customers will acquire that a certain product has a personal relevance and relationship with them Relationship quality
The relationship quality or connections is represented through real-image of relationship and individual experience of each party in the relationship A subjective connection is obtained through positive passion energy matter and togetherness (Quinn and Dutton 2005 Heaphy amp Dutton 2008 in Vivek 2011) in which Two people involved in the connection and active participation (Heaphy and Dutton Vivek 2008267 in 2011)
In this study connection is defined as a positive emotional relationship that customers have a sense of belonging to the companies The quality of relationship construction is based on the amount of time spent in the workplace employees are significantly influenced by their relationships formed in the workplace so the connection significantly influences the function of the organization Customer value
The concept of customer value (CV) by Kotler and Keller (2009 14) is the combination of quality service price of products or services Furthermore Customer value is the dispute between the amount of value for customers and the total cost of customers and the amount of value for customers are customers expected profit of certain goods or services
According to Best in (Sumarwan et al 2010 30) the customer value is a benefit or profit obtained by customers lessened by the cost of the purchase Based on this concept customer value is derived from the economic customer and emotional benefits Economic Benefit is obtained from surplus of price and cost but not the cost of purchase which includes acquisition ownership usage maintenance repairment and disposal costs Customers Benefit is derived from the product appearance service and reputation Emotional Benefit is the overplus of the product to meet the emotional needs of the customer associated with psychological needs types of customers personality and customer personal value
C RESEARCH METHOD
The population of this study is all customers of PT Siba Courier Indonesia totaling 40 companies spread over two cities Semarang and Jakarta Because of limited number of population the total population is all designated as sample or census research Moreover it is also with the consideration that using total population as a sample will get a more representative description and minimize the error rates so that the data obtained will be close the real value The sample proposed is the companies which at least for three years have actively used services of PT Siba Courier Indonesia Then from each company it is selected two people from the owner and the manager or the other person who has the authority to make decision (the decision maker)
The data collection method is purposive sampling and the analysis techniques is performed by Partial Least Square and Sobel Test
Table 1
1st Piksi International Conference on Knowledge and Sciences 2014 Page | 12
Research Variables and Indicators No Variables Indicators Shape
1 Customer engagement is the level of customers attention to the company
Sharing (CE1)
Likert Scale 1-5
Learning (CE2) Advocating (CE3) Socialization (CE4) Co-developing (CE5)
2 Relationship quality is quality of the relationship created between customer and companies
Trust (RQ1) Commitment (RQ2) Satisfaction (RQ3)
3
Customer value is the matched value perceived by customers on the services prices of the products quality received by them
Connection with Company (CV1) Goodwill (CV2) Word of Mouth (CV3) Affective Commitment (CV4) Intent to do Business (CV5)
Data Analysis
PLS (Partial Least Square) is used to examine and test the hypothesis proposed PLS has advantages that lsquoit involves no assumptions about the population or scale of measurement (Fornell amp Bookstein 1982) and consequently it works without distributional assumptions and by nominal ordinal and interval scaled variables However one has to bear in mind that the PLS like any statistical technique also requires certain assumptions to be fulfilled Apart from the standard ones (ie the classical Gaussian linear ordinary least squares) regression models (see eg Gujarati 1995) the most important predictor of the assumption is the specification (Chin amp Newsted 1999)
D FINDINGS Based on data analysis of the study it can be explained the analysis of partial least
squares (PLS) as follows Inner PLS model results
The indicators of customer engagement consist of sharing (CE1) learning (CE2) advocating (CE3) socialization (CE4) and co-developing (CE5) The outline of the PLS model for the indicators proposed is shown in Table 2
Table 2 Test Results of Validity and Reliability of Customer Engagement Indicator Variables
No Indicator Test Validity Composite Reliability Loading T-Statistic Criteria
1 CE 1 0919 9438 valid
0876 2 CE 2 0753 5330 valid 3 CE 3 0711 4915 valid 4 CE 4 0851 7639 valid 5 CE 5 0854 6314 valid
Sources Primary data processed in 2014
Table 2 is the result of convergent validity test 5 indicators of customer engagement have loading factor value more than 05 by the T statistical value of all indicators greater than T Table by 196 so that all indicators of customer engagement can be said to be valid The order of the strongest to the weakest indicator is CE1 (sharing) CE5 (co-developing) CE4
1st Piksi International Conference on Knowledge and Sciences 2014 Page | 13
(socialization) CE2 (learning) and CE3 (advocating) Based on the composite reliability test of indicator measuring the construct it shows a satisfactory results in the amount of 0876 meaning that the construct of customer engagement can provide relatively similar results when it is measured again by the same subjects
The indicator of Relationship quality consists of three indicators namely trust (RQ1) commitment (RQ2) and satisfaction (RQ3) The results of the PLS model for the outer indicators is shown in Table 3 below
Table 3
Test Results of Validity and Reliability of Relationship Quality Indicator Variables
No Indicator Test Validity Composite Reliability Loading T-Statistic Criteria
1 RQ1 0822 4959 valid 0731 2 RQ2 0812 5508 valid
3 RQ3 0785 5318 valid
Sources Primary data were processed in 2014
Table 3 is the result of convergent validity test 3 indicators of relationship quality has a loading factor values more than 05 and the value of the T statistic is higher than the T table by 196 so that all indicators of relationship quality can be said to be valid The order of the strongest to the weakest indicator is RQ1 RQ2 and RQ3 Based on the composite reliability test of the indicators measuring construction it showes a satisfactory results in the amount of 0731 meaning that the relationship quality constructs can provide relatively similar results if it is measured again by the same subjects
The indicator of Customer value consists of 5 indicators the connection with the commpany (CV1) goodwill (CV2) word of mouth (CV3) affective commitment (CV4) and intent to do business (CV5) The result of outer model is in Table 4
Table 4 Test Results of Validity and Reliability of Customer value Indicator Variables
No Indicator Test Validity Composite Reliability Loading T-Statistic Criteria
1 CV1 0 815 9 382 valid
0860 2 CV2 0 752 6 211 valid 3 CV3 0 712 4 022 valid 4 CV4 0 886 7 349 valid 5 CV5 0 837 7 649 valid
Table 4 is the result of convergent validity test 5 indicators of customer value has a
loading factor value more than 05 and the value of statistical Tgt T Table by 196 so that all indicators of customer value can be said to be valid The order of the strongest to the weakest indicator is CV4 CV5 CV1 CV2 and CV3 Based on the composite reliability test of indicators measuring the block construct it shows a satisfactory results in the amount of 0860 meaning that the construct of customer value can provide relatively similar results if it is measured again by the same subjects Inner PLS model results
Inner models describes the relationship among latent variables based on substantive theory The results of the bootstrapping output graphs display the relationship among variables such as customer engagement relationship quality and customer value as shown in Figure 2
1st Piksi International Conference on Knowledge and Sciences 2014 Page | 14
Based on calculations in Figure 2 It is known that the direct influence of customer engagement on customer value is equal to 0491 with the indirect influence of 0984 x 0507 = 0499 It means that the indirect influence is higher than the direct Thus the relationship quality variable is the path of the relationship between the customer engagement and customer value Briefly it means that customer engagement can directly improve customer value by trying to increase the relationship quality first
Sources Primary data processed 2014 Figure 1
The relationship Model between the Customer Engagement Relationship quality and Customer value of PT Siba Courier Indonesia
Figure 1 also shows the magnitude of the determination coefficient The coefficient of determination is used to recognize how significant the influence of exogenous variables toward endogenous the higher the value of the coefficient of determination the higher the influence of exogenous variables on endogenous will be R-square value generated from the relationship between customer engagement with the relationship quality is 0969 meaning that the variation of relationship quality which can be explained by customer engagement is 969 while the remaining 31 is obtained from other variables Then R-square value of the relationship model between customer engagement relationship quality and customer value is 0988 it means that the variation of customer value that can be explained by the relationship quality and customer engagement is 988 while the remaining 12 are determined by other variables
Then the hypothesis test is performed by looking at the value of t count if tcount is higher than ttable (alpha 5 = 196) then the alternative hypothesis (H a) is accepted and H 0 is rejected and so that for the opposite Based on the PLS test the results of testing the relationship among variables can be seen in Table 9 and Figure 3
Table 5 Results of Inner Weight
No The relationship among variables Original Sample (O) T Statistics (| O Sterr |) Criteria
1 CE -gt CV 0491 2312 Significant 2 CE -gt RQ 0984 110053 Significant 3 RQ -gt CV 0507 2383 Significant
Sources Primary data processed 2014
1st Piksi International Conference on Knowledge and Sciences 2014 Page | 15
1 The first hypothesis the customer engagement significantly influences the relationship quality Based on the PLS calculations result in Table 8 testing the first hypothesis about the
influence of customer engagement on relationship quality it is obtained the value of the estimated coefficient (β) of 0984 with t statistic value of 110053 This result is much higher than t-table value which is only 196 Then it can be concluded that there is a positive significant influence on the customer engagement variable toward the relationship quality Thus the first hypothesis is accepted
2 The second hypothesis the customer engagement significantly influences the customer value Based on the PLS calculations result in Table 9 testing the second hypothesis about the
influence of customer engagement toward customer value it is obtained the value of the estimated coefficient (β) of 0491 with t statistic value of 2312 This result is higher than t-table value which is only 196 So it can be concluded that there is a positive significant influence of the customer engagement variable toward customer value Thus the second hypothesis is accepted
3 The third hypothesis relationship quality significantly influence customer value Based on the PLS calculations result in Table 9 testing the third hypothesis about the
influence of relationship quality on customer value it is obtained the value of the estimated coefficient (β) of 0507 with t statistic value of 2383 This result is higher than t-table value which is only 196 So it can be concluded that there is a positive significant influence of the relationship quality variable on customer value Thus the third hypothesis is accepted Sobel Test Results
Sobel test is conducted by testing the strength of the indirect influence of independent variables (customer engagement) toward dependent variable (customer value) through intervening variable (relationship quality) This test is done by Online Sobel Test Calculator for the Significance of Mediation by entering the regression coefficient and standard error values of the customer engagement variables to the relationship quality and the regression coefficient and standard error values of the relationship quality variable to customer value in which it gets the result as follows
Figure 4
Sobel Test Results Sobel test shown in Figure 4 shows the Sobel test statistic value of 23797 with a one-
side significance value of 0009 because the significance value is lt005 therefore it can be said that the relationship quality is the intervening variable of the correlation of customer engagement and customer value
E DISCUSSION In this study Customer engagement positively influences relationship quality it means
that the better the customer engagement the better the relationship quality between the customer and the company By involving customers such as Inviting them to share about the things to improve the performance of the company or promote cooperation between companies and customers (share) inviting customers to know more about the company (learning) motivating customers to inform others about the companys products or services (advocating) motivating customers to promote products services of the company (socialization) and motivating customers to contribute ideas that might contribute to the improvement of performance and service of the companies (co-developing) then it will be able to create a good quality relationships between the companies and customers
1st Piksi International Conference on Knowledge and Sciences 2014 Page | 16
This is in line with the findings by Saks (2006) which states that the employee engagement has been implemented as a means to explore and explain the organizational commitment and behaviors of the members and also applied as a predictor of customer ratings toward the companies Furthermore the finding of the study is also in accordance with the opinion of Salanova et al (2005) that engagement has also been recognized as a way to improve morale cohesion and psychological relationship between the customer and the company or organization
The quality of a good relationship is manifested by the growth of customer trust the presence of customer commitment to always use the companys services and customer satisfaction with the overall service provided by the company
Customer engagement in this study positively contribute to customer value the better the company does customer engagement efforts it will contribute to higher customer value Involving customers such as inviting them to share about the things to improve the performance of the company or promote cooperation between companies and customers (share) inviting customers to know more about the company (learning) motivating the customer to inform others about product and service of companies (advocating) motivating customers to promote products services company (socialization) and motivating customers to contribute ideas to improve the performance and service companies (co-developing) will be able to create high customer value
The studys findings are in line with the study conducted by Li and Dant in Vivek (2011) which concludes that the intensity of customer engagement will be positively related to the value received by customers By the time customers are treated very well and considered as part of the company it will raise the principle of reciprocity in which the customer will give the good attitude as good as what they have received by the company (Bagozzidalam Vivek 2011)
Companies Interaction to customers via initiative engagement strategies will make the reciprocity norm appear to customersrsquo engagement If the company successfully engage customers customers will recognize the benefits received and give return values to indicate behavioral intentions In the return of value received customers will have a good faith and affective commitment to the organization and may be willing to develop a strong relationship with the organization
Moreover in this study relationship quality give positive influence on customer value The better relationship quality the better the customer value will be It means that relationship quality is one of the important factors to increase customer value Relationship quality is needed to drive steer cultivate and maintain customer behavior towards the achievement of better corporate performance
Relationship quality in this study also serves as a mediator of the influence of customer engagement toward customer value Customer value will be stronger with the role of relationship quality in it Starting from involving customers by sharing it will create a good relationship between the company and customers Then One of the good form of relationship is the emergence of self-confidence of the customers toward the the company Based on these good relationships created customers will give a positive assessment to the company by the form of manifesting customer awareness of the companys survival (affective commitment) which in this study seems to show the highest loading value of all indicators of customer value
Empirically findings of this study support the finding by John (2008) that concludes that the success in fostering good relationship with customers is actually a beneficial thing that can bring profit for both parties The relationship created between the company and the customer will make communication better
After feeling satisfied and having created a good relationship then the customers will tell the companyrsquos advantage to others The information spread by the customer can build a good image about the company and it can bring in new clients or customers for the companyBy a good relationship not only company but also customers will get profits and advantages Benefits and advantages gained by customers also vary eg special price given by the company and get extra service for being a loyal customer
F CONCLUSION Based on the analysis and discussion in this study it obtains a general conclusion as
follows
1st Piksi International Conference on Knowledge and Sciences 2014 Page | 17
1) Customer engagement have a positive significant influence on relationship quality It means that the better the customer engagement the better the relationship quality will be and the increased sharing programs between companies and customers is a way that can be used to improve customer engagement and gain trust of customers to be better 2) Customer engagement have a positive significant influence on customer value It means that the better the customer engagement the better the customer value will be and the improvement of sharing programs between companies and customers is a way that can be used to improve customer engagement and to establish customer awareness of the companiesrsquo survival company (affective commitment) And 3) Relationship quality have a positive significant influence on customer value it means that the better the relationship quality the better the customer value and establishing trust of the customer is a way to improve the quality of relationships and increase customer awareness of companies survival (affective commitment)
This study has limitations that is the study results can not be generalized beyond the sample of the study because the respondents used is only limited to customers of PT Siba Courier Indonesia representing Semarang and Jakarta city Thus to conduct similar study involving all customers of PT Siba Courier Indonesia spreading in many cities around Indonesia still need to be considered
BIBLIOGRAPHY Brodie JR Ilic A Hollebeek L 2011 Consumer engagement in a virtual brand community An
exploratory analysis Journal of Business Research xxx (2011) xxxndashxxx Cateora Philip R Graham John L 2007 Pemasaran Internasional 13th Edition Jakarta Salemba
Empat Chan S 2003 Relationship Marketing Inovasi Pemasaran yang Membuat Pelanggan Bertekuk
Lutut Jakarta Penerbit PT Gramedia Pustaka Utama Copulsky J R and M J Wolf 1990 Relationship Marketing Positioning for the Future The
Journal of Business Strategy Fandy Tjiptono 2005 Pemasaran Jasa 1st Edition Malang Bayu Media Publishing Fuad Masrsquoud 2004 Survai Diagnosis Organisasional Konsep dan Aplikasi Semarang Diponegoro
University Press Groumlnroos C 1994 ldquoFrom Marketing Mix to Relationship Marketing Towards a Paradigm Shift in
Marketingrdquo Management Decision Vol 32 No 2 pp 4-20 Hollebeek LD 2009 Demystifying Customer Engagement Toward the Development of a
Conceptual Model AMZNAC 2009 1-9 Imam Ghozali 2006 Structural Equation Modeling Metode Alternatif denganPLS (Kedua ed)
Semarang Diponegoro University Press Kotler Philip amp Keller Kevin Lane 2009 Manajemen Pemasaran Edisi 13 Jilid 2 Jakarta PT
Indeks Kotler Philip 2007 Manajemen Pemasaran Analisis Perencanaan Pengendalian Prentice Hall
Edisi Bahasa Indonesia Jakarta Salemba Empat Kumar V Lerzan A Bas D Rajkumar V Thorsten W dan Sebastian T 2010 Undervalued or
Overvalued Customers Capturing Total Customer engagement Value Journal of Service Research 13(3) 297-310
MacInnis dan Mello Jefrey A 2001 StrategicHuman Resources Management International Edition South Western Publishing Ohio
Mowen John C dan Minor M 2002 Perilaku Konsumen Jilid 1 Edisi Kelima (terjemahan) Jakarta Erlangga
Nammir Darman Sulaiman Sadiq Bayar Mohamed Rasheed Marane Aree Mohammed Ali 2012 Determine the Role of Customer engagement on Relationship Quality and Relationship Performance European Journal of Business and Management wwwiisteorgISSN 2222-1905 (Paper) ISSN 2222-2839 (Online) Vol 4 No11 2012
Peter Paul J and Olson Jerry C 2002Perilaku Konsumen dan StrategiPemasaran Edisi ke Empat (Terjemahan) Jakarta Penerbit Erlangga
1st Piksi International Conference on Knowledge and Sciences 2014 Page | 18
Rustono 2010 Faktor-faktor yang Mempengaruhi Implementasi Customer Relationship Mangement (CRM) untuk Meningkatkan Loyalitas PelangganRagamJurnal Pengembangan Humaniora Vol 10 No 3 Desember 2010 153-160
Ryals L and S Knox 2001 ldquoCross-Functional Issue in the Implementation of Relationship Marketing Through Customer relationship Managementrdquo European Management Journal Vol 19 No 5 pp 534-542
Setiadi J Nugroho 2005 Perilaku Konsumen Jakarta Kencana Sugiyono 2008 Metode Penelitian Kuantitatif Kualitatif dan RampD Bandung Alfabeta Tjahyadi RA 2010Membangun Hubungan Jangka Panjang Pelanggan Melalui Relationship
Marketing httpmajourmaranathaeduindexphpjurnal-manajemenarticleview178 Vivek SD 2011 A Scale Of Consumer Engagement Disertasi Department of Management and
Marketing in the Graduate School of The University of Alabama Yahya Y 2008 Pengaruh Customer Relationship Management (CRM) dalam Meningkatkan loyalitas
Pelanggan httpfebudiluhuracidwp-contentuploads201105Pengaruh-Customer-Relationship-Management-Dalam-Meningkatka-Loyalitas-Pelanggan-Yohanes-Yahyapdf
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1st Piksi International Conference on Knowledge and Sciences 2014 Page | 9
THE ROLE OF DYNAMIC MODEL OF CUSTOMER ENGAGEMENT TOWARD CUSTOMER VALUE
Ardian Adhiatma
M A Irfan Rahmana Dept of Management Faculty of Economics UNISSULA Semarang Indonesia
E-mail ardianunissulaacid irfanrahmanayahoocom
ABSTRACT The added value of the company at this time can not always be built only through customer satisfaction but more to factors such as communication coaching and sharing of the company as stated in the customer engagement The purpose of this study is to know the role of dynamic models of customer engagement toward customer value Explanatory research is conducted on 50 owners managers and authorized personnel in corporate decision The sampling used is purposive sampling Furthermore there are three variables involved in this study those are customer engagement relationship quality and customer value The data of these three variables is obtained from questionnaires Partial least squares analysis with smart PLS 20 is used to determine the correlation within variables Customer engagement shows a positive results and significant influence to customer value either directly or indirectly through the relationship quality in which the influence of indirect coefficient (0499) is higher than the direct coefficient (0491) So it can be concluded that customer engagement has a role in improving customer value through relationship quality
Keywords customer engagement relationship quality customer value
1st Piksi International Conference on Knowledge and Sciences 2014 Page | 10
A INTRODUCTION Nowadays Challenges in the business field have become increasingly tight and
complicated because the presence of dynamical complexities in the market values in which the needs and demands of customers as main stakeholders have changed massively The change of customers condition in demand occur because the presences of information and choices have grown rapidly Not only self-needs experiencing a change but also the ways customers access the needs also change from time to time In the past customer satisfactions were mostly determined by the quality of productsservices pricing and after-sales service Briefly its only three aspects that got too much attention marketers only focused in improving the quality of products pressing price efficiency to be affordable and opening outlets of after sales service Yet in the present day these aspects are considered not meet expectations customers want more of these aspects as a prerequisite for their satisfaction In conclusion it means that the needs of customers expectations has changed so that the programs and approaches to satisfy customers should also be conducted (Rustono 2010)
The phenomena as mentioned above also occur in courier Industries The rapid competition of courier industries in Indonesia is not only caused by globalization but also customers awareness of price and high demands The rapid growth of communication and technology also contribute to the increase of competition intensity since it gives customers access to more information about the wide range of products or services offered These conditions lead customers to have more choices in spending their money
The added value of the company at this time can not always be built only through customer satisfaction but also more to other factors such as communication coaching and sharing of the company as stated in the customer engagement Customer engagement is the peak of the companys relationship with customers to survive and thrive to launch new products to pay more attention into competitor products to sell more products from competitors Besides that the companies also have to implement Customer Relationship Management whereby customer engagement is one of its components At the level of customer engagement relationship built has already been a combination of rational and emotional aspects The quality of this relationship has reached the level of the inner closeness and long-term dimension (Shevlin 2011 in Vivek 2011)
The concept of customer engagement has also been frequently considered as a potential superior strength to predict and to explain the context of the service retention and customer loyalty (Bowden 2009 in Hollebeek 2009) Furthermore Customer engagement is a promising new concept and expected to exceed the contribution given by traditional relational construction including perceived quality customer engagement and satisfaction in explaining and predicting customer value (Hollebeek 2009) Customer value is defined as the emotional bond that exists between customers and manufacturers because the customers use the products and services of the company and then find that the product or service give them additional value (Tjiptono 2005)
The study by Hollebeek (2009) concludes that the customers engagement improve loyalty satisfaction empowerment connection emotional bonding trust and commitment Furthermore Kumar et al (2010) emphasizes that customers can be involved in creating value for the company in various ways first the customer lifetime value (customer buying behavior) second the customer referrals value (related to referral incentives of new customers) third customer influence value (related to customers behavior to influence other customers which increases the acquisition retention and share of wallet through communication among customers and existing prospects) and fourth is the customer knowledge value (surplus for the company with feedback from customers) Customer engagemet value (CEV) provides a comprehensive framework that can ultimately lead to more efficient marketing strategies that enable a higher long-term contribution to customers The study by Vivek (2011) proves that customers engagement in turn can positively influence the companys relationship with customers and raises good faith and intention to do business with the company
The capability of Customer engagement in predicting customer value has been adopted as a marketing strategy by PT Siba Courier Indonesia This strategy is implemented because until this time if it is compared with its competitors PT Siba Courier Indonesia is far behind from their competitors in terms of the availability of fleet infrastructure and age In the future PT Siba Courier Indonesia is predicted to be abandoned by its customers if only rely on the availability of
1st Piksi International Conference on Knowledge and Sciences 2014 Page | 11
limited facilities and infrastructure The fact that the customers of PT Siba Courier Indonesia both in Jakarta and Semarang are still loyal to use the services of this company and even if they keep patient waiting queue to obtain service because the company have overload in order delivery If in general to improve the competitiveness and to maintain the survival of the company efforts are made through internal factors (improvement of service quality provision of infrastructure and facilities services technological advances etc) in this study exactly at PT Siba Courier Indonesia the related cases are not found Therefore it is interesting to do a more focused study on the role of dynamic models of customer engagement toward customer value in the PT Siba Courier Indonesia
B LITERATURE REVIEW
Customer Engagement Customer engagement (CE) is the intensity of customer participation by representatives
of the organization and through other customers in the process of collaborative knowledge exchange (Wagner and Majchrzak 200720) in Vivek (2011) Engagement refers to customersrsquo perception toward the importance or personal relevance of objects events and activities In this case Customers will acquire that a certain product has a personal relevance and relationship with them Relationship quality
The relationship quality or connections is represented through real-image of relationship and individual experience of each party in the relationship A subjective connection is obtained through positive passion energy matter and togetherness (Quinn and Dutton 2005 Heaphy amp Dutton 2008 in Vivek 2011) in which Two people involved in the connection and active participation (Heaphy and Dutton Vivek 2008267 in 2011)
In this study connection is defined as a positive emotional relationship that customers have a sense of belonging to the companies The quality of relationship construction is based on the amount of time spent in the workplace employees are significantly influenced by their relationships formed in the workplace so the connection significantly influences the function of the organization Customer value
The concept of customer value (CV) by Kotler and Keller (2009 14) is the combination of quality service price of products or services Furthermore Customer value is the dispute between the amount of value for customers and the total cost of customers and the amount of value for customers are customers expected profit of certain goods or services
According to Best in (Sumarwan et al 2010 30) the customer value is a benefit or profit obtained by customers lessened by the cost of the purchase Based on this concept customer value is derived from the economic customer and emotional benefits Economic Benefit is obtained from surplus of price and cost but not the cost of purchase which includes acquisition ownership usage maintenance repairment and disposal costs Customers Benefit is derived from the product appearance service and reputation Emotional Benefit is the overplus of the product to meet the emotional needs of the customer associated with psychological needs types of customers personality and customer personal value
C RESEARCH METHOD
The population of this study is all customers of PT Siba Courier Indonesia totaling 40 companies spread over two cities Semarang and Jakarta Because of limited number of population the total population is all designated as sample or census research Moreover it is also with the consideration that using total population as a sample will get a more representative description and minimize the error rates so that the data obtained will be close the real value The sample proposed is the companies which at least for three years have actively used services of PT Siba Courier Indonesia Then from each company it is selected two people from the owner and the manager or the other person who has the authority to make decision (the decision maker)
The data collection method is purposive sampling and the analysis techniques is performed by Partial Least Square and Sobel Test
Table 1
1st Piksi International Conference on Knowledge and Sciences 2014 Page | 12
Research Variables and Indicators No Variables Indicators Shape
1 Customer engagement is the level of customers attention to the company
Sharing (CE1)
Likert Scale 1-5
Learning (CE2) Advocating (CE3) Socialization (CE4) Co-developing (CE5)
2 Relationship quality is quality of the relationship created between customer and companies
Trust (RQ1) Commitment (RQ2) Satisfaction (RQ3)
3
Customer value is the matched value perceived by customers on the services prices of the products quality received by them
Connection with Company (CV1) Goodwill (CV2) Word of Mouth (CV3) Affective Commitment (CV4) Intent to do Business (CV5)
Data Analysis
PLS (Partial Least Square) is used to examine and test the hypothesis proposed PLS has advantages that lsquoit involves no assumptions about the population or scale of measurement (Fornell amp Bookstein 1982) and consequently it works without distributional assumptions and by nominal ordinal and interval scaled variables However one has to bear in mind that the PLS like any statistical technique also requires certain assumptions to be fulfilled Apart from the standard ones (ie the classical Gaussian linear ordinary least squares) regression models (see eg Gujarati 1995) the most important predictor of the assumption is the specification (Chin amp Newsted 1999)
D FINDINGS Based on data analysis of the study it can be explained the analysis of partial least
squares (PLS) as follows Inner PLS model results
The indicators of customer engagement consist of sharing (CE1) learning (CE2) advocating (CE3) socialization (CE4) and co-developing (CE5) The outline of the PLS model for the indicators proposed is shown in Table 2
Table 2 Test Results of Validity and Reliability of Customer Engagement Indicator Variables
No Indicator Test Validity Composite Reliability Loading T-Statistic Criteria
1 CE 1 0919 9438 valid
0876 2 CE 2 0753 5330 valid 3 CE 3 0711 4915 valid 4 CE 4 0851 7639 valid 5 CE 5 0854 6314 valid
Sources Primary data processed in 2014
Table 2 is the result of convergent validity test 5 indicators of customer engagement have loading factor value more than 05 by the T statistical value of all indicators greater than T Table by 196 so that all indicators of customer engagement can be said to be valid The order of the strongest to the weakest indicator is CE1 (sharing) CE5 (co-developing) CE4
1st Piksi International Conference on Knowledge and Sciences 2014 Page | 13
(socialization) CE2 (learning) and CE3 (advocating) Based on the composite reliability test of indicator measuring the construct it shows a satisfactory results in the amount of 0876 meaning that the construct of customer engagement can provide relatively similar results when it is measured again by the same subjects
The indicator of Relationship quality consists of three indicators namely trust (RQ1) commitment (RQ2) and satisfaction (RQ3) The results of the PLS model for the outer indicators is shown in Table 3 below
Table 3
Test Results of Validity and Reliability of Relationship Quality Indicator Variables
No Indicator Test Validity Composite Reliability Loading T-Statistic Criteria
1 RQ1 0822 4959 valid 0731 2 RQ2 0812 5508 valid
3 RQ3 0785 5318 valid
Sources Primary data were processed in 2014
Table 3 is the result of convergent validity test 3 indicators of relationship quality has a loading factor values more than 05 and the value of the T statistic is higher than the T table by 196 so that all indicators of relationship quality can be said to be valid The order of the strongest to the weakest indicator is RQ1 RQ2 and RQ3 Based on the composite reliability test of the indicators measuring construction it showes a satisfactory results in the amount of 0731 meaning that the relationship quality constructs can provide relatively similar results if it is measured again by the same subjects
The indicator of Customer value consists of 5 indicators the connection with the commpany (CV1) goodwill (CV2) word of mouth (CV3) affective commitment (CV4) and intent to do business (CV5) The result of outer model is in Table 4
Table 4 Test Results of Validity and Reliability of Customer value Indicator Variables
No Indicator Test Validity Composite Reliability Loading T-Statistic Criteria
1 CV1 0 815 9 382 valid
0860 2 CV2 0 752 6 211 valid 3 CV3 0 712 4 022 valid 4 CV4 0 886 7 349 valid 5 CV5 0 837 7 649 valid
Table 4 is the result of convergent validity test 5 indicators of customer value has a
loading factor value more than 05 and the value of statistical Tgt T Table by 196 so that all indicators of customer value can be said to be valid The order of the strongest to the weakest indicator is CV4 CV5 CV1 CV2 and CV3 Based on the composite reliability test of indicators measuring the block construct it shows a satisfactory results in the amount of 0860 meaning that the construct of customer value can provide relatively similar results if it is measured again by the same subjects Inner PLS model results
Inner models describes the relationship among latent variables based on substantive theory The results of the bootstrapping output graphs display the relationship among variables such as customer engagement relationship quality and customer value as shown in Figure 2
1st Piksi International Conference on Knowledge and Sciences 2014 Page | 14
Based on calculations in Figure 2 It is known that the direct influence of customer engagement on customer value is equal to 0491 with the indirect influence of 0984 x 0507 = 0499 It means that the indirect influence is higher than the direct Thus the relationship quality variable is the path of the relationship between the customer engagement and customer value Briefly it means that customer engagement can directly improve customer value by trying to increase the relationship quality first
Sources Primary data processed 2014 Figure 1
The relationship Model between the Customer Engagement Relationship quality and Customer value of PT Siba Courier Indonesia
Figure 1 also shows the magnitude of the determination coefficient The coefficient of determination is used to recognize how significant the influence of exogenous variables toward endogenous the higher the value of the coefficient of determination the higher the influence of exogenous variables on endogenous will be R-square value generated from the relationship between customer engagement with the relationship quality is 0969 meaning that the variation of relationship quality which can be explained by customer engagement is 969 while the remaining 31 is obtained from other variables Then R-square value of the relationship model between customer engagement relationship quality and customer value is 0988 it means that the variation of customer value that can be explained by the relationship quality and customer engagement is 988 while the remaining 12 are determined by other variables
Then the hypothesis test is performed by looking at the value of t count if tcount is higher than ttable (alpha 5 = 196) then the alternative hypothesis (H a) is accepted and H 0 is rejected and so that for the opposite Based on the PLS test the results of testing the relationship among variables can be seen in Table 9 and Figure 3
Table 5 Results of Inner Weight
No The relationship among variables Original Sample (O) T Statistics (| O Sterr |) Criteria
1 CE -gt CV 0491 2312 Significant 2 CE -gt RQ 0984 110053 Significant 3 RQ -gt CV 0507 2383 Significant
Sources Primary data processed 2014
1st Piksi International Conference on Knowledge and Sciences 2014 Page | 15
1 The first hypothesis the customer engagement significantly influences the relationship quality Based on the PLS calculations result in Table 8 testing the first hypothesis about the
influence of customer engagement on relationship quality it is obtained the value of the estimated coefficient (β) of 0984 with t statistic value of 110053 This result is much higher than t-table value which is only 196 Then it can be concluded that there is a positive significant influence on the customer engagement variable toward the relationship quality Thus the first hypothesis is accepted
2 The second hypothesis the customer engagement significantly influences the customer value Based on the PLS calculations result in Table 9 testing the second hypothesis about the
influence of customer engagement toward customer value it is obtained the value of the estimated coefficient (β) of 0491 with t statistic value of 2312 This result is higher than t-table value which is only 196 So it can be concluded that there is a positive significant influence of the customer engagement variable toward customer value Thus the second hypothesis is accepted
3 The third hypothesis relationship quality significantly influence customer value Based on the PLS calculations result in Table 9 testing the third hypothesis about the
influence of relationship quality on customer value it is obtained the value of the estimated coefficient (β) of 0507 with t statistic value of 2383 This result is higher than t-table value which is only 196 So it can be concluded that there is a positive significant influence of the relationship quality variable on customer value Thus the third hypothesis is accepted Sobel Test Results
Sobel test is conducted by testing the strength of the indirect influence of independent variables (customer engagement) toward dependent variable (customer value) through intervening variable (relationship quality) This test is done by Online Sobel Test Calculator for the Significance of Mediation by entering the regression coefficient and standard error values of the customer engagement variables to the relationship quality and the regression coefficient and standard error values of the relationship quality variable to customer value in which it gets the result as follows
Figure 4
Sobel Test Results Sobel test shown in Figure 4 shows the Sobel test statistic value of 23797 with a one-
side significance value of 0009 because the significance value is lt005 therefore it can be said that the relationship quality is the intervening variable of the correlation of customer engagement and customer value
E DISCUSSION In this study Customer engagement positively influences relationship quality it means
that the better the customer engagement the better the relationship quality between the customer and the company By involving customers such as Inviting them to share about the things to improve the performance of the company or promote cooperation between companies and customers (share) inviting customers to know more about the company (learning) motivating customers to inform others about the companys products or services (advocating) motivating customers to promote products services of the company (socialization) and motivating customers to contribute ideas that might contribute to the improvement of performance and service of the companies (co-developing) then it will be able to create a good quality relationships between the companies and customers
1st Piksi International Conference on Knowledge and Sciences 2014 Page | 16
This is in line with the findings by Saks (2006) which states that the employee engagement has been implemented as a means to explore and explain the organizational commitment and behaviors of the members and also applied as a predictor of customer ratings toward the companies Furthermore the finding of the study is also in accordance with the opinion of Salanova et al (2005) that engagement has also been recognized as a way to improve morale cohesion and psychological relationship between the customer and the company or organization
The quality of a good relationship is manifested by the growth of customer trust the presence of customer commitment to always use the companys services and customer satisfaction with the overall service provided by the company
Customer engagement in this study positively contribute to customer value the better the company does customer engagement efforts it will contribute to higher customer value Involving customers such as inviting them to share about the things to improve the performance of the company or promote cooperation between companies and customers (share) inviting customers to know more about the company (learning) motivating the customer to inform others about product and service of companies (advocating) motivating customers to promote products services company (socialization) and motivating customers to contribute ideas to improve the performance and service companies (co-developing) will be able to create high customer value
The studys findings are in line with the study conducted by Li and Dant in Vivek (2011) which concludes that the intensity of customer engagement will be positively related to the value received by customers By the time customers are treated very well and considered as part of the company it will raise the principle of reciprocity in which the customer will give the good attitude as good as what they have received by the company (Bagozzidalam Vivek 2011)
Companies Interaction to customers via initiative engagement strategies will make the reciprocity norm appear to customersrsquo engagement If the company successfully engage customers customers will recognize the benefits received and give return values to indicate behavioral intentions In the return of value received customers will have a good faith and affective commitment to the organization and may be willing to develop a strong relationship with the organization
Moreover in this study relationship quality give positive influence on customer value The better relationship quality the better the customer value will be It means that relationship quality is one of the important factors to increase customer value Relationship quality is needed to drive steer cultivate and maintain customer behavior towards the achievement of better corporate performance
Relationship quality in this study also serves as a mediator of the influence of customer engagement toward customer value Customer value will be stronger with the role of relationship quality in it Starting from involving customers by sharing it will create a good relationship between the company and customers Then One of the good form of relationship is the emergence of self-confidence of the customers toward the the company Based on these good relationships created customers will give a positive assessment to the company by the form of manifesting customer awareness of the companys survival (affective commitment) which in this study seems to show the highest loading value of all indicators of customer value
Empirically findings of this study support the finding by John (2008) that concludes that the success in fostering good relationship with customers is actually a beneficial thing that can bring profit for both parties The relationship created between the company and the customer will make communication better
After feeling satisfied and having created a good relationship then the customers will tell the companyrsquos advantage to others The information spread by the customer can build a good image about the company and it can bring in new clients or customers for the companyBy a good relationship not only company but also customers will get profits and advantages Benefits and advantages gained by customers also vary eg special price given by the company and get extra service for being a loyal customer
F CONCLUSION Based on the analysis and discussion in this study it obtains a general conclusion as
follows
1st Piksi International Conference on Knowledge and Sciences 2014 Page | 17
1) Customer engagement have a positive significant influence on relationship quality It means that the better the customer engagement the better the relationship quality will be and the increased sharing programs between companies and customers is a way that can be used to improve customer engagement and gain trust of customers to be better 2) Customer engagement have a positive significant influence on customer value It means that the better the customer engagement the better the customer value will be and the improvement of sharing programs between companies and customers is a way that can be used to improve customer engagement and to establish customer awareness of the companiesrsquo survival company (affective commitment) And 3) Relationship quality have a positive significant influence on customer value it means that the better the relationship quality the better the customer value and establishing trust of the customer is a way to improve the quality of relationships and increase customer awareness of companies survival (affective commitment)
This study has limitations that is the study results can not be generalized beyond the sample of the study because the respondents used is only limited to customers of PT Siba Courier Indonesia representing Semarang and Jakarta city Thus to conduct similar study involving all customers of PT Siba Courier Indonesia spreading in many cities around Indonesia still need to be considered
BIBLIOGRAPHY Brodie JR Ilic A Hollebeek L 2011 Consumer engagement in a virtual brand community An
exploratory analysis Journal of Business Research xxx (2011) xxxndashxxx Cateora Philip R Graham John L 2007 Pemasaran Internasional 13th Edition Jakarta Salemba
Empat Chan S 2003 Relationship Marketing Inovasi Pemasaran yang Membuat Pelanggan Bertekuk
Lutut Jakarta Penerbit PT Gramedia Pustaka Utama Copulsky J R and M J Wolf 1990 Relationship Marketing Positioning for the Future The
Journal of Business Strategy Fandy Tjiptono 2005 Pemasaran Jasa 1st Edition Malang Bayu Media Publishing Fuad Masrsquoud 2004 Survai Diagnosis Organisasional Konsep dan Aplikasi Semarang Diponegoro
University Press Groumlnroos C 1994 ldquoFrom Marketing Mix to Relationship Marketing Towards a Paradigm Shift in
Marketingrdquo Management Decision Vol 32 No 2 pp 4-20 Hollebeek LD 2009 Demystifying Customer Engagement Toward the Development of a
Conceptual Model AMZNAC 2009 1-9 Imam Ghozali 2006 Structural Equation Modeling Metode Alternatif denganPLS (Kedua ed)
Semarang Diponegoro University Press Kotler Philip amp Keller Kevin Lane 2009 Manajemen Pemasaran Edisi 13 Jilid 2 Jakarta PT
Indeks Kotler Philip 2007 Manajemen Pemasaran Analisis Perencanaan Pengendalian Prentice Hall
Edisi Bahasa Indonesia Jakarta Salemba Empat Kumar V Lerzan A Bas D Rajkumar V Thorsten W dan Sebastian T 2010 Undervalued or
Overvalued Customers Capturing Total Customer engagement Value Journal of Service Research 13(3) 297-310
MacInnis dan Mello Jefrey A 2001 StrategicHuman Resources Management International Edition South Western Publishing Ohio
Mowen John C dan Minor M 2002 Perilaku Konsumen Jilid 1 Edisi Kelima (terjemahan) Jakarta Erlangga
Nammir Darman Sulaiman Sadiq Bayar Mohamed Rasheed Marane Aree Mohammed Ali 2012 Determine the Role of Customer engagement on Relationship Quality and Relationship Performance European Journal of Business and Management wwwiisteorgISSN 2222-1905 (Paper) ISSN 2222-2839 (Online) Vol 4 No11 2012
Peter Paul J and Olson Jerry C 2002Perilaku Konsumen dan StrategiPemasaran Edisi ke Empat (Terjemahan) Jakarta Penerbit Erlangga
1st Piksi International Conference on Knowledge and Sciences 2014 Page | 18
Rustono 2010 Faktor-faktor yang Mempengaruhi Implementasi Customer Relationship Mangement (CRM) untuk Meningkatkan Loyalitas PelangganRagamJurnal Pengembangan Humaniora Vol 10 No 3 Desember 2010 153-160
Ryals L and S Knox 2001 ldquoCross-Functional Issue in the Implementation of Relationship Marketing Through Customer relationship Managementrdquo European Management Journal Vol 19 No 5 pp 534-542
Setiadi J Nugroho 2005 Perilaku Konsumen Jakarta Kencana Sugiyono 2008 Metode Penelitian Kuantitatif Kualitatif dan RampD Bandung Alfabeta Tjahyadi RA 2010Membangun Hubungan Jangka Panjang Pelanggan Melalui Relationship
Marketing httpmajourmaranathaeduindexphpjurnal-manajemenarticleview178 Vivek SD 2011 A Scale Of Consumer Engagement Disertasi Department of Management and
Marketing in the Graduate School of The University of Alabama Yahya Y 2008 Pengaruh Customer Relationship Management (CRM) dalam Meningkatkan loyalitas
Pelanggan httpfebudiluhuracidwp-contentuploads201105Pengaruh-Customer-Relationship-Management-Dalam-Meningkatka-Loyalitas-Pelanggan-Yohanes-Yahyapdf
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Published by LPPM Pollteknlk Piksi GaneshO
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MEOKINE (CA M) SERVICES IN SURABAYA-_ ----- -_
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DIAGNOSI SCODEF ICATION
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THE PSYCHOSOCIAL ISSUES AND 102 Fadhil Nordin INTERVENTION -
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FAMILY COM MUNICATI ON 103 6ETWEEN HEAD OF FAMI LY WITH
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108
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TECHNOLOGY
109 Nurdin Ar i Canjar
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xii
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T HEANALYS ISOF TUE INFLUENCE Piksi Ganesha OF HEALTH SERVI CE QUALI TY Polytechn ic FACTORS TOWARD TH E
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130 II IPolytech nic or PRI MARY CA RE (ICPC) FOR
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Polytechnic SERV ICE EXCELLENCE
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Kutai Bogor ANA LYS IS
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Yudhy PU nNanto 13213 2 Po lytech nic TIME IWANCI SUN OA) LOCA L POT ENTIA L PRODUCT OF
Ambar Mulyono Universitas Scbelas BAMBOO HAN DYCRAFT AT 133 j133 1 Ken Sunar ko Mare t KECAM ATAN CEPER KA BU PATANI I
I KLATEN
Piksi Ca neshaRin i Susilowa(i134
Polytechn ic
Piksi Callesha135 Yunyun Ratna H
Polytech n ic
IMPLEM ENTATI ON Of EM PLOYE E MOTI VAT ION DISCI PLI NE AND
PERFO RMANCE IN OEPARTEM EN OF EDUCAT ION DI STRI CT BANDUNG
T HE ROLE OF HUMAN RELATIONS IN IM PROVI NGT HE QUALITY OF
EXCE LLENT SERVICE IN PT RISTRA GROUP BAN DUN(
- _ I
I134
135
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L_----_ _____L-_ _ ___ _ STUDENTS IN NO RTH~ltART~L__L-l
xiii
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CULI URE 10WA DS 8ACA Bl-_RMshy
1st Piksi International Conference on Knowledge and Sciences 2014 Page | 9
THE ROLE OF DYNAMIC MODEL OF CUSTOMER ENGAGEMENT TOWARD CUSTOMER VALUE
Ardian Adhiatma
M A Irfan Rahmana Dept of Management Faculty of Economics UNISSULA Semarang Indonesia
E-mail ardianunissulaacid irfanrahmanayahoocom
ABSTRACT The added value of the company at this time can not always be built only through customer satisfaction but more to factors such as communication coaching and sharing of the company as stated in the customer engagement The purpose of this study is to know the role of dynamic models of customer engagement toward customer value Explanatory research is conducted on 50 owners managers and authorized personnel in corporate decision The sampling used is purposive sampling Furthermore there are three variables involved in this study those are customer engagement relationship quality and customer value The data of these three variables is obtained from questionnaires Partial least squares analysis with smart PLS 20 is used to determine the correlation within variables Customer engagement shows a positive results and significant influence to customer value either directly or indirectly through the relationship quality in which the influence of indirect coefficient (0499) is higher than the direct coefficient (0491) So it can be concluded that customer engagement has a role in improving customer value through relationship quality
Keywords customer engagement relationship quality customer value
1st Piksi International Conference on Knowledge and Sciences 2014 Page | 10
A INTRODUCTION Nowadays Challenges in the business field have become increasingly tight and
complicated because the presence of dynamical complexities in the market values in which the needs and demands of customers as main stakeholders have changed massively The change of customers condition in demand occur because the presences of information and choices have grown rapidly Not only self-needs experiencing a change but also the ways customers access the needs also change from time to time In the past customer satisfactions were mostly determined by the quality of productsservices pricing and after-sales service Briefly its only three aspects that got too much attention marketers only focused in improving the quality of products pressing price efficiency to be affordable and opening outlets of after sales service Yet in the present day these aspects are considered not meet expectations customers want more of these aspects as a prerequisite for their satisfaction In conclusion it means that the needs of customers expectations has changed so that the programs and approaches to satisfy customers should also be conducted (Rustono 2010)
The phenomena as mentioned above also occur in courier Industries The rapid competition of courier industries in Indonesia is not only caused by globalization but also customers awareness of price and high demands The rapid growth of communication and technology also contribute to the increase of competition intensity since it gives customers access to more information about the wide range of products or services offered These conditions lead customers to have more choices in spending their money
The added value of the company at this time can not always be built only through customer satisfaction but also more to other factors such as communication coaching and sharing of the company as stated in the customer engagement Customer engagement is the peak of the companys relationship with customers to survive and thrive to launch new products to pay more attention into competitor products to sell more products from competitors Besides that the companies also have to implement Customer Relationship Management whereby customer engagement is one of its components At the level of customer engagement relationship built has already been a combination of rational and emotional aspects The quality of this relationship has reached the level of the inner closeness and long-term dimension (Shevlin 2011 in Vivek 2011)
The concept of customer engagement has also been frequently considered as a potential superior strength to predict and to explain the context of the service retention and customer loyalty (Bowden 2009 in Hollebeek 2009) Furthermore Customer engagement is a promising new concept and expected to exceed the contribution given by traditional relational construction including perceived quality customer engagement and satisfaction in explaining and predicting customer value (Hollebeek 2009) Customer value is defined as the emotional bond that exists between customers and manufacturers because the customers use the products and services of the company and then find that the product or service give them additional value (Tjiptono 2005)
The study by Hollebeek (2009) concludes that the customers engagement improve loyalty satisfaction empowerment connection emotional bonding trust and commitment Furthermore Kumar et al (2010) emphasizes that customers can be involved in creating value for the company in various ways first the customer lifetime value (customer buying behavior) second the customer referrals value (related to referral incentives of new customers) third customer influence value (related to customers behavior to influence other customers which increases the acquisition retention and share of wallet through communication among customers and existing prospects) and fourth is the customer knowledge value (surplus for the company with feedback from customers) Customer engagemet value (CEV) provides a comprehensive framework that can ultimately lead to more efficient marketing strategies that enable a higher long-term contribution to customers The study by Vivek (2011) proves that customers engagement in turn can positively influence the companys relationship with customers and raises good faith and intention to do business with the company
The capability of Customer engagement in predicting customer value has been adopted as a marketing strategy by PT Siba Courier Indonesia This strategy is implemented because until this time if it is compared with its competitors PT Siba Courier Indonesia is far behind from their competitors in terms of the availability of fleet infrastructure and age In the future PT Siba Courier Indonesia is predicted to be abandoned by its customers if only rely on the availability of
1st Piksi International Conference on Knowledge and Sciences 2014 Page | 11
limited facilities and infrastructure The fact that the customers of PT Siba Courier Indonesia both in Jakarta and Semarang are still loyal to use the services of this company and even if they keep patient waiting queue to obtain service because the company have overload in order delivery If in general to improve the competitiveness and to maintain the survival of the company efforts are made through internal factors (improvement of service quality provision of infrastructure and facilities services technological advances etc) in this study exactly at PT Siba Courier Indonesia the related cases are not found Therefore it is interesting to do a more focused study on the role of dynamic models of customer engagement toward customer value in the PT Siba Courier Indonesia
B LITERATURE REVIEW
Customer Engagement Customer engagement (CE) is the intensity of customer participation by representatives
of the organization and through other customers in the process of collaborative knowledge exchange (Wagner and Majchrzak 200720) in Vivek (2011) Engagement refers to customersrsquo perception toward the importance or personal relevance of objects events and activities In this case Customers will acquire that a certain product has a personal relevance and relationship with them Relationship quality
The relationship quality or connections is represented through real-image of relationship and individual experience of each party in the relationship A subjective connection is obtained through positive passion energy matter and togetherness (Quinn and Dutton 2005 Heaphy amp Dutton 2008 in Vivek 2011) in which Two people involved in the connection and active participation (Heaphy and Dutton Vivek 2008267 in 2011)
In this study connection is defined as a positive emotional relationship that customers have a sense of belonging to the companies The quality of relationship construction is based on the amount of time spent in the workplace employees are significantly influenced by their relationships formed in the workplace so the connection significantly influences the function of the organization Customer value
The concept of customer value (CV) by Kotler and Keller (2009 14) is the combination of quality service price of products or services Furthermore Customer value is the dispute between the amount of value for customers and the total cost of customers and the amount of value for customers are customers expected profit of certain goods or services
According to Best in (Sumarwan et al 2010 30) the customer value is a benefit or profit obtained by customers lessened by the cost of the purchase Based on this concept customer value is derived from the economic customer and emotional benefits Economic Benefit is obtained from surplus of price and cost but not the cost of purchase which includes acquisition ownership usage maintenance repairment and disposal costs Customers Benefit is derived from the product appearance service and reputation Emotional Benefit is the overplus of the product to meet the emotional needs of the customer associated with psychological needs types of customers personality and customer personal value
C RESEARCH METHOD
The population of this study is all customers of PT Siba Courier Indonesia totaling 40 companies spread over two cities Semarang and Jakarta Because of limited number of population the total population is all designated as sample or census research Moreover it is also with the consideration that using total population as a sample will get a more representative description and minimize the error rates so that the data obtained will be close the real value The sample proposed is the companies which at least for three years have actively used services of PT Siba Courier Indonesia Then from each company it is selected two people from the owner and the manager or the other person who has the authority to make decision (the decision maker)
The data collection method is purposive sampling and the analysis techniques is performed by Partial Least Square and Sobel Test
Table 1
1st Piksi International Conference on Knowledge and Sciences 2014 Page | 12
Research Variables and Indicators No Variables Indicators Shape
1 Customer engagement is the level of customers attention to the company
Sharing (CE1)
Likert Scale 1-5
Learning (CE2) Advocating (CE3) Socialization (CE4) Co-developing (CE5)
2 Relationship quality is quality of the relationship created between customer and companies
Trust (RQ1) Commitment (RQ2) Satisfaction (RQ3)
3
Customer value is the matched value perceived by customers on the services prices of the products quality received by them
Connection with Company (CV1) Goodwill (CV2) Word of Mouth (CV3) Affective Commitment (CV4) Intent to do Business (CV5)
Data Analysis
PLS (Partial Least Square) is used to examine and test the hypothesis proposed PLS has advantages that lsquoit involves no assumptions about the population or scale of measurement (Fornell amp Bookstein 1982) and consequently it works without distributional assumptions and by nominal ordinal and interval scaled variables However one has to bear in mind that the PLS like any statistical technique also requires certain assumptions to be fulfilled Apart from the standard ones (ie the classical Gaussian linear ordinary least squares) regression models (see eg Gujarati 1995) the most important predictor of the assumption is the specification (Chin amp Newsted 1999)
D FINDINGS Based on data analysis of the study it can be explained the analysis of partial least
squares (PLS) as follows Inner PLS model results
The indicators of customer engagement consist of sharing (CE1) learning (CE2) advocating (CE3) socialization (CE4) and co-developing (CE5) The outline of the PLS model for the indicators proposed is shown in Table 2
Table 2 Test Results of Validity and Reliability of Customer Engagement Indicator Variables
No Indicator Test Validity Composite Reliability Loading T-Statistic Criteria
1 CE 1 0919 9438 valid
0876 2 CE 2 0753 5330 valid 3 CE 3 0711 4915 valid 4 CE 4 0851 7639 valid 5 CE 5 0854 6314 valid
Sources Primary data processed in 2014
Table 2 is the result of convergent validity test 5 indicators of customer engagement have loading factor value more than 05 by the T statistical value of all indicators greater than T Table by 196 so that all indicators of customer engagement can be said to be valid The order of the strongest to the weakest indicator is CE1 (sharing) CE5 (co-developing) CE4
1st Piksi International Conference on Knowledge and Sciences 2014 Page | 13
(socialization) CE2 (learning) and CE3 (advocating) Based on the composite reliability test of indicator measuring the construct it shows a satisfactory results in the amount of 0876 meaning that the construct of customer engagement can provide relatively similar results when it is measured again by the same subjects
The indicator of Relationship quality consists of three indicators namely trust (RQ1) commitment (RQ2) and satisfaction (RQ3) The results of the PLS model for the outer indicators is shown in Table 3 below
Table 3
Test Results of Validity and Reliability of Relationship Quality Indicator Variables
No Indicator Test Validity Composite Reliability Loading T-Statistic Criteria
1 RQ1 0822 4959 valid 0731 2 RQ2 0812 5508 valid
3 RQ3 0785 5318 valid
Sources Primary data were processed in 2014
Table 3 is the result of convergent validity test 3 indicators of relationship quality has a loading factor values more than 05 and the value of the T statistic is higher than the T table by 196 so that all indicators of relationship quality can be said to be valid The order of the strongest to the weakest indicator is RQ1 RQ2 and RQ3 Based on the composite reliability test of the indicators measuring construction it showes a satisfactory results in the amount of 0731 meaning that the relationship quality constructs can provide relatively similar results if it is measured again by the same subjects
The indicator of Customer value consists of 5 indicators the connection with the commpany (CV1) goodwill (CV2) word of mouth (CV3) affective commitment (CV4) and intent to do business (CV5) The result of outer model is in Table 4
Table 4 Test Results of Validity and Reliability of Customer value Indicator Variables
No Indicator Test Validity Composite Reliability Loading T-Statistic Criteria
1 CV1 0 815 9 382 valid
0860 2 CV2 0 752 6 211 valid 3 CV3 0 712 4 022 valid 4 CV4 0 886 7 349 valid 5 CV5 0 837 7 649 valid
Table 4 is the result of convergent validity test 5 indicators of customer value has a
loading factor value more than 05 and the value of statistical Tgt T Table by 196 so that all indicators of customer value can be said to be valid The order of the strongest to the weakest indicator is CV4 CV5 CV1 CV2 and CV3 Based on the composite reliability test of indicators measuring the block construct it shows a satisfactory results in the amount of 0860 meaning that the construct of customer value can provide relatively similar results if it is measured again by the same subjects Inner PLS model results
Inner models describes the relationship among latent variables based on substantive theory The results of the bootstrapping output graphs display the relationship among variables such as customer engagement relationship quality and customer value as shown in Figure 2
1st Piksi International Conference on Knowledge and Sciences 2014 Page | 14
Based on calculations in Figure 2 It is known that the direct influence of customer engagement on customer value is equal to 0491 with the indirect influence of 0984 x 0507 = 0499 It means that the indirect influence is higher than the direct Thus the relationship quality variable is the path of the relationship between the customer engagement and customer value Briefly it means that customer engagement can directly improve customer value by trying to increase the relationship quality first
Sources Primary data processed 2014 Figure 1
The relationship Model between the Customer Engagement Relationship quality and Customer value of PT Siba Courier Indonesia
Figure 1 also shows the magnitude of the determination coefficient The coefficient of determination is used to recognize how significant the influence of exogenous variables toward endogenous the higher the value of the coefficient of determination the higher the influence of exogenous variables on endogenous will be R-square value generated from the relationship between customer engagement with the relationship quality is 0969 meaning that the variation of relationship quality which can be explained by customer engagement is 969 while the remaining 31 is obtained from other variables Then R-square value of the relationship model between customer engagement relationship quality and customer value is 0988 it means that the variation of customer value that can be explained by the relationship quality and customer engagement is 988 while the remaining 12 are determined by other variables
Then the hypothesis test is performed by looking at the value of t count if tcount is higher than ttable (alpha 5 = 196) then the alternative hypothesis (H a) is accepted and H 0 is rejected and so that for the opposite Based on the PLS test the results of testing the relationship among variables can be seen in Table 9 and Figure 3
Table 5 Results of Inner Weight
No The relationship among variables Original Sample (O) T Statistics (| O Sterr |) Criteria
1 CE -gt CV 0491 2312 Significant 2 CE -gt RQ 0984 110053 Significant 3 RQ -gt CV 0507 2383 Significant
Sources Primary data processed 2014
1st Piksi International Conference on Knowledge and Sciences 2014 Page | 15
1 The first hypothesis the customer engagement significantly influences the relationship quality Based on the PLS calculations result in Table 8 testing the first hypothesis about the
influence of customer engagement on relationship quality it is obtained the value of the estimated coefficient (β) of 0984 with t statistic value of 110053 This result is much higher than t-table value which is only 196 Then it can be concluded that there is a positive significant influence on the customer engagement variable toward the relationship quality Thus the first hypothesis is accepted
2 The second hypothesis the customer engagement significantly influences the customer value Based on the PLS calculations result in Table 9 testing the second hypothesis about the
influence of customer engagement toward customer value it is obtained the value of the estimated coefficient (β) of 0491 with t statistic value of 2312 This result is higher than t-table value which is only 196 So it can be concluded that there is a positive significant influence of the customer engagement variable toward customer value Thus the second hypothesis is accepted
3 The third hypothesis relationship quality significantly influence customer value Based on the PLS calculations result in Table 9 testing the third hypothesis about the
influence of relationship quality on customer value it is obtained the value of the estimated coefficient (β) of 0507 with t statistic value of 2383 This result is higher than t-table value which is only 196 So it can be concluded that there is a positive significant influence of the relationship quality variable on customer value Thus the third hypothesis is accepted Sobel Test Results
Sobel test is conducted by testing the strength of the indirect influence of independent variables (customer engagement) toward dependent variable (customer value) through intervening variable (relationship quality) This test is done by Online Sobel Test Calculator for the Significance of Mediation by entering the regression coefficient and standard error values of the customer engagement variables to the relationship quality and the regression coefficient and standard error values of the relationship quality variable to customer value in which it gets the result as follows
Figure 4
Sobel Test Results Sobel test shown in Figure 4 shows the Sobel test statistic value of 23797 with a one-
side significance value of 0009 because the significance value is lt005 therefore it can be said that the relationship quality is the intervening variable of the correlation of customer engagement and customer value
E DISCUSSION In this study Customer engagement positively influences relationship quality it means
that the better the customer engagement the better the relationship quality between the customer and the company By involving customers such as Inviting them to share about the things to improve the performance of the company or promote cooperation between companies and customers (share) inviting customers to know more about the company (learning) motivating customers to inform others about the companys products or services (advocating) motivating customers to promote products services of the company (socialization) and motivating customers to contribute ideas that might contribute to the improvement of performance and service of the companies (co-developing) then it will be able to create a good quality relationships between the companies and customers
1st Piksi International Conference on Knowledge and Sciences 2014 Page | 16
This is in line with the findings by Saks (2006) which states that the employee engagement has been implemented as a means to explore and explain the organizational commitment and behaviors of the members and also applied as a predictor of customer ratings toward the companies Furthermore the finding of the study is also in accordance with the opinion of Salanova et al (2005) that engagement has also been recognized as a way to improve morale cohesion and psychological relationship between the customer and the company or organization
The quality of a good relationship is manifested by the growth of customer trust the presence of customer commitment to always use the companys services and customer satisfaction with the overall service provided by the company
Customer engagement in this study positively contribute to customer value the better the company does customer engagement efforts it will contribute to higher customer value Involving customers such as inviting them to share about the things to improve the performance of the company or promote cooperation between companies and customers (share) inviting customers to know more about the company (learning) motivating the customer to inform others about product and service of companies (advocating) motivating customers to promote products services company (socialization) and motivating customers to contribute ideas to improve the performance and service companies (co-developing) will be able to create high customer value
The studys findings are in line with the study conducted by Li and Dant in Vivek (2011) which concludes that the intensity of customer engagement will be positively related to the value received by customers By the time customers are treated very well and considered as part of the company it will raise the principle of reciprocity in which the customer will give the good attitude as good as what they have received by the company (Bagozzidalam Vivek 2011)
Companies Interaction to customers via initiative engagement strategies will make the reciprocity norm appear to customersrsquo engagement If the company successfully engage customers customers will recognize the benefits received and give return values to indicate behavioral intentions In the return of value received customers will have a good faith and affective commitment to the organization and may be willing to develop a strong relationship with the organization
Moreover in this study relationship quality give positive influence on customer value The better relationship quality the better the customer value will be It means that relationship quality is one of the important factors to increase customer value Relationship quality is needed to drive steer cultivate and maintain customer behavior towards the achievement of better corporate performance
Relationship quality in this study also serves as a mediator of the influence of customer engagement toward customer value Customer value will be stronger with the role of relationship quality in it Starting from involving customers by sharing it will create a good relationship between the company and customers Then One of the good form of relationship is the emergence of self-confidence of the customers toward the the company Based on these good relationships created customers will give a positive assessment to the company by the form of manifesting customer awareness of the companys survival (affective commitment) which in this study seems to show the highest loading value of all indicators of customer value
Empirically findings of this study support the finding by John (2008) that concludes that the success in fostering good relationship with customers is actually a beneficial thing that can bring profit for both parties The relationship created between the company and the customer will make communication better
After feeling satisfied and having created a good relationship then the customers will tell the companyrsquos advantage to others The information spread by the customer can build a good image about the company and it can bring in new clients or customers for the companyBy a good relationship not only company but also customers will get profits and advantages Benefits and advantages gained by customers also vary eg special price given by the company and get extra service for being a loyal customer
F CONCLUSION Based on the analysis and discussion in this study it obtains a general conclusion as
follows
1st Piksi International Conference on Knowledge and Sciences 2014 Page | 17
1) Customer engagement have a positive significant influence on relationship quality It means that the better the customer engagement the better the relationship quality will be and the increased sharing programs between companies and customers is a way that can be used to improve customer engagement and gain trust of customers to be better 2) Customer engagement have a positive significant influence on customer value It means that the better the customer engagement the better the customer value will be and the improvement of sharing programs between companies and customers is a way that can be used to improve customer engagement and to establish customer awareness of the companiesrsquo survival company (affective commitment) And 3) Relationship quality have a positive significant influence on customer value it means that the better the relationship quality the better the customer value and establishing trust of the customer is a way to improve the quality of relationships and increase customer awareness of companies survival (affective commitment)
This study has limitations that is the study results can not be generalized beyond the sample of the study because the respondents used is only limited to customers of PT Siba Courier Indonesia representing Semarang and Jakarta city Thus to conduct similar study involving all customers of PT Siba Courier Indonesia spreading in many cities around Indonesia still need to be considered
BIBLIOGRAPHY Brodie JR Ilic A Hollebeek L 2011 Consumer engagement in a virtual brand community An
exploratory analysis Journal of Business Research xxx (2011) xxxndashxxx Cateora Philip R Graham John L 2007 Pemasaran Internasional 13th Edition Jakarta Salemba
Empat Chan S 2003 Relationship Marketing Inovasi Pemasaran yang Membuat Pelanggan Bertekuk
Lutut Jakarta Penerbit PT Gramedia Pustaka Utama Copulsky J R and M J Wolf 1990 Relationship Marketing Positioning for the Future The
Journal of Business Strategy Fandy Tjiptono 2005 Pemasaran Jasa 1st Edition Malang Bayu Media Publishing Fuad Masrsquoud 2004 Survai Diagnosis Organisasional Konsep dan Aplikasi Semarang Diponegoro
University Press Groumlnroos C 1994 ldquoFrom Marketing Mix to Relationship Marketing Towards a Paradigm Shift in
Marketingrdquo Management Decision Vol 32 No 2 pp 4-20 Hollebeek LD 2009 Demystifying Customer Engagement Toward the Development of a
Conceptual Model AMZNAC 2009 1-9 Imam Ghozali 2006 Structural Equation Modeling Metode Alternatif denganPLS (Kedua ed)
Semarang Diponegoro University Press Kotler Philip amp Keller Kevin Lane 2009 Manajemen Pemasaran Edisi 13 Jilid 2 Jakarta PT
Indeks Kotler Philip 2007 Manajemen Pemasaran Analisis Perencanaan Pengendalian Prentice Hall
Edisi Bahasa Indonesia Jakarta Salemba Empat Kumar V Lerzan A Bas D Rajkumar V Thorsten W dan Sebastian T 2010 Undervalued or
Overvalued Customers Capturing Total Customer engagement Value Journal of Service Research 13(3) 297-310
MacInnis dan Mello Jefrey A 2001 StrategicHuman Resources Management International Edition South Western Publishing Ohio
Mowen John C dan Minor M 2002 Perilaku Konsumen Jilid 1 Edisi Kelima (terjemahan) Jakarta Erlangga
Nammir Darman Sulaiman Sadiq Bayar Mohamed Rasheed Marane Aree Mohammed Ali 2012 Determine the Role of Customer engagement on Relationship Quality and Relationship Performance European Journal of Business and Management wwwiisteorgISSN 2222-1905 (Paper) ISSN 2222-2839 (Online) Vol 4 No11 2012
Peter Paul J and Olson Jerry C 2002Perilaku Konsumen dan StrategiPemasaran Edisi ke Empat (Terjemahan) Jakarta Penerbit Erlangga
1st Piksi International Conference on Knowledge and Sciences 2014 Page | 18
Rustono 2010 Faktor-faktor yang Mempengaruhi Implementasi Customer Relationship Mangement (CRM) untuk Meningkatkan Loyalitas PelangganRagamJurnal Pengembangan Humaniora Vol 10 No 3 Desember 2010 153-160
Ryals L and S Knox 2001 ldquoCross-Functional Issue in the Implementation of Relationship Marketing Through Customer relationship Managementrdquo European Management Journal Vol 19 No 5 pp 534-542
Setiadi J Nugroho 2005 Perilaku Konsumen Jakarta Kencana Sugiyono 2008 Metode Penelitian Kuantitatif Kualitatif dan RampD Bandung Alfabeta Tjahyadi RA 2010Membangun Hubungan Jangka Panjang Pelanggan Melalui Relationship
Marketing httpmajourmaranathaeduindexphpjurnal-manajemenarticleview178 Vivek SD 2011 A Scale Of Consumer Engagement Disertasi Department of Management and
Marketing in the Graduate School of The University of Alabama Yahya Y 2008 Pengaruh Customer Relationship Management (CRM) dalam Meningkatkan loyalitas
Pelanggan httpfebudiluhuracidwp-contentuploads201105Pengaruh-Customer-Relationship-Management-Dalam-Meningkatka-Loyalitas-Pelanggan-Yohanes-Yahyapdf
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126 Endang Khoirunn
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RELATEO INFORMATI ON SOURC ES ON REPRODUCTIVE HEALTH Akad emi Keb ida nan PR EPAREDN ESSDEALIN G WITH
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T HEANALYS ISOF TUE INFLUENCE Piksi Ganesha OF HEALTH SERVI CE QUALI TY Polytechn ic FACTORS TOWARD TH E
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THE USE OF DISEASE CODES WITH Piksi Ganesha INTERNATIONAL CLASSIFICAT ION
130 II IPolytech nic or PRI MARY CA RE (ICPC) FOR
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Polytechnic SERV ICE EXCELLENCE
Ban dung
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Kutai Bogor ANA LYS IS
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127
128
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Piksl Ganesha EMPOWERMENT TOWARD13 1 M i ~a Vera nita 131
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1st Piksi International Conference on Knowledge and Sciences 2014 Page | 9
THE ROLE OF DYNAMIC MODEL OF CUSTOMER ENGAGEMENT TOWARD CUSTOMER VALUE
Ardian Adhiatma
M A Irfan Rahmana Dept of Management Faculty of Economics UNISSULA Semarang Indonesia
E-mail ardianunissulaacid irfanrahmanayahoocom
ABSTRACT The added value of the company at this time can not always be built only through customer satisfaction but more to factors such as communication coaching and sharing of the company as stated in the customer engagement The purpose of this study is to know the role of dynamic models of customer engagement toward customer value Explanatory research is conducted on 50 owners managers and authorized personnel in corporate decision The sampling used is purposive sampling Furthermore there are three variables involved in this study those are customer engagement relationship quality and customer value The data of these three variables is obtained from questionnaires Partial least squares analysis with smart PLS 20 is used to determine the correlation within variables Customer engagement shows a positive results and significant influence to customer value either directly or indirectly through the relationship quality in which the influence of indirect coefficient (0499) is higher than the direct coefficient (0491) So it can be concluded that customer engagement has a role in improving customer value through relationship quality
Keywords customer engagement relationship quality customer value
1st Piksi International Conference on Knowledge and Sciences 2014 Page | 10
A INTRODUCTION Nowadays Challenges in the business field have become increasingly tight and
complicated because the presence of dynamical complexities in the market values in which the needs and demands of customers as main stakeholders have changed massively The change of customers condition in demand occur because the presences of information and choices have grown rapidly Not only self-needs experiencing a change but also the ways customers access the needs also change from time to time In the past customer satisfactions were mostly determined by the quality of productsservices pricing and after-sales service Briefly its only three aspects that got too much attention marketers only focused in improving the quality of products pressing price efficiency to be affordable and opening outlets of after sales service Yet in the present day these aspects are considered not meet expectations customers want more of these aspects as a prerequisite for their satisfaction In conclusion it means that the needs of customers expectations has changed so that the programs and approaches to satisfy customers should also be conducted (Rustono 2010)
The phenomena as mentioned above also occur in courier Industries The rapid competition of courier industries in Indonesia is not only caused by globalization but also customers awareness of price and high demands The rapid growth of communication and technology also contribute to the increase of competition intensity since it gives customers access to more information about the wide range of products or services offered These conditions lead customers to have more choices in spending their money
The added value of the company at this time can not always be built only through customer satisfaction but also more to other factors such as communication coaching and sharing of the company as stated in the customer engagement Customer engagement is the peak of the companys relationship with customers to survive and thrive to launch new products to pay more attention into competitor products to sell more products from competitors Besides that the companies also have to implement Customer Relationship Management whereby customer engagement is one of its components At the level of customer engagement relationship built has already been a combination of rational and emotional aspects The quality of this relationship has reached the level of the inner closeness and long-term dimension (Shevlin 2011 in Vivek 2011)
The concept of customer engagement has also been frequently considered as a potential superior strength to predict and to explain the context of the service retention and customer loyalty (Bowden 2009 in Hollebeek 2009) Furthermore Customer engagement is a promising new concept and expected to exceed the contribution given by traditional relational construction including perceived quality customer engagement and satisfaction in explaining and predicting customer value (Hollebeek 2009) Customer value is defined as the emotional bond that exists between customers and manufacturers because the customers use the products and services of the company and then find that the product or service give them additional value (Tjiptono 2005)
The study by Hollebeek (2009) concludes that the customers engagement improve loyalty satisfaction empowerment connection emotional bonding trust and commitment Furthermore Kumar et al (2010) emphasizes that customers can be involved in creating value for the company in various ways first the customer lifetime value (customer buying behavior) second the customer referrals value (related to referral incentives of new customers) third customer influence value (related to customers behavior to influence other customers which increases the acquisition retention and share of wallet through communication among customers and existing prospects) and fourth is the customer knowledge value (surplus for the company with feedback from customers) Customer engagemet value (CEV) provides a comprehensive framework that can ultimately lead to more efficient marketing strategies that enable a higher long-term contribution to customers The study by Vivek (2011) proves that customers engagement in turn can positively influence the companys relationship with customers and raises good faith and intention to do business with the company
The capability of Customer engagement in predicting customer value has been adopted as a marketing strategy by PT Siba Courier Indonesia This strategy is implemented because until this time if it is compared with its competitors PT Siba Courier Indonesia is far behind from their competitors in terms of the availability of fleet infrastructure and age In the future PT Siba Courier Indonesia is predicted to be abandoned by its customers if only rely on the availability of
1st Piksi International Conference on Knowledge and Sciences 2014 Page | 11
limited facilities and infrastructure The fact that the customers of PT Siba Courier Indonesia both in Jakarta and Semarang are still loyal to use the services of this company and even if they keep patient waiting queue to obtain service because the company have overload in order delivery If in general to improve the competitiveness and to maintain the survival of the company efforts are made through internal factors (improvement of service quality provision of infrastructure and facilities services technological advances etc) in this study exactly at PT Siba Courier Indonesia the related cases are not found Therefore it is interesting to do a more focused study on the role of dynamic models of customer engagement toward customer value in the PT Siba Courier Indonesia
B LITERATURE REVIEW
Customer Engagement Customer engagement (CE) is the intensity of customer participation by representatives
of the organization and through other customers in the process of collaborative knowledge exchange (Wagner and Majchrzak 200720) in Vivek (2011) Engagement refers to customersrsquo perception toward the importance or personal relevance of objects events and activities In this case Customers will acquire that a certain product has a personal relevance and relationship with them Relationship quality
The relationship quality or connections is represented through real-image of relationship and individual experience of each party in the relationship A subjective connection is obtained through positive passion energy matter and togetherness (Quinn and Dutton 2005 Heaphy amp Dutton 2008 in Vivek 2011) in which Two people involved in the connection and active participation (Heaphy and Dutton Vivek 2008267 in 2011)
In this study connection is defined as a positive emotional relationship that customers have a sense of belonging to the companies The quality of relationship construction is based on the amount of time spent in the workplace employees are significantly influenced by their relationships formed in the workplace so the connection significantly influences the function of the organization Customer value
The concept of customer value (CV) by Kotler and Keller (2009 14) is the combination of quality service price of products or services Furthermore Customer value is the dispute between the amount of value for customers and the total cost of customers and the amount of value for customers are customers expected profit of certain goods or services
According to Best in (Sumarwan et al 2010 30) the customer value is a benefit or profit obtained by customers lessened by the cost of the purchase Based on this concept customer value is derived from the economic customer and emotional benefits Economic Benefit is obtained from surplus of price and cost but not the cost of purchase which includes acquisition ownership usage maintenance repairment and disposal costs Customers Benefit is derived from the product appearance service and reputation Emotional Benefit is the overplus of the product to meet the emotional needs of the customer associated with psychological needs types of customers personality and customer personal value
C RESEARCH METHOD
The population of this study is all customers of PT Siba Courier Indonesia totaling 40 companies spread over two cities Semarang and Jakarta Because of limited number of population the total population is all designated as sample or census research Moreover it is also with the consideration that using total population as a sample will get a more representative description and minimize the error rates so that the data obtained will be close the real value The sample proposed is the companies which at least for three years have actively used services of PT Siba Courier Indonesia Then from each company it is selected two people from the owner and the manager or the other person who has the authority to make decision (the decision maker)
The data collection method is purposive sampling and the analysis techniques is performed by Partial Least Square and Sobel Test
Table 1
1st Piksi International Conference on Knowledge and Sciences 2014 Page | 12
Research Variables and Indicators No Variables Indicators Shape
1 Customer engagement is the level of customers attention to the company
Sharing (CE1)
Likert Scale 1-5
Learning (CE2) Advocating (CE3) Socialization (CE4) Co-developing (CE5)
2 Relationship quality is quality of the relationship created between customer and companies
Trust (RQ1) Commitment (RQ2) Satisfaction (RQ3)
3
Customer value is the matched value perceived by customers on the services prices of the products quality received by them
Connection with Company (CV1) Goodwill (CV2) Word of Mouth (CV3) Affective Commitment (CV4) Intent to do Business (CV5)
Data Analysis
PLS (Partial Least Square) is used to examine and test the hypothesis proposed PLS has advantages that lsquoit involves no assumptions about the population or scale of measurement (Fornell amp Bookstein 1982) and consequently it works without distributional assumptions and by nominal ordinal and interval scaled variables However one has to bear in mind that the PLS like any statistical technique also requires certain assumptions to be fulfilled Apart from the standard ones (ie the classical Gaussian linear ordinary least squares) regression models (see eg Gujarati 1995) the most important predictor of the assumption is the specification (Chin amp Newsted 1999)
D FINDINGS Based on data analysis of the study it can be explained the analysis of partial least
squares (PLS) as follows Inner PLS model results
The indicators of customer engagement consist of sharing (CE1) learning (CE2) advocating (CE3) socialization (CE4) and co-developing (CE5) The outline of the PLS model for the indicators proposed is shown in Table 2
Table 2 Test Results of Validity and Reliability of Customer Engagement Indicator Variables
No Indicator Test Validity Composite Reliability Loading T-Statistic Criteria
1 CE 1 0919 9438 valid
0876 2 CE 2 0753 5330 valid 3 CE 3 0711 4915 valid 4 CE 4 0851 7639 valid 5 CE 5 0854 6314 valid
Sources Primary data processed in 2014
Table 2 is the result of convergent validity test 5 indicators of customer engagement have loading factor value more than 05 by the T statistical value of all indicators greater than T Table by 196 so that all indicators of customer engagement can be said to be valid The order of the strongest to the weakest indicator is CE1 (sharing) CE5 (co-developing) CE4
1st Piksi International Conference on Knowledge and Sciences 2014 Page | 13
(socialization) CE2 (learning) and CE3 (advocating) Based on the composite reliability test of indicator measuring the construct it shows a satisfactory results in the amount of 0876 meaning that the construct of customer engagement can provide relatively similar results when it is measured again by the same subjects
The indicator of Relationship quality consists of three indicators namely trust (RQ1) commitment (RQ2) and satisfaction (RQ3) The results of the PLS model for the outer indicators is shown in Table 3 below
Table 3
Test Results of Validity and Reliability of Relationship Quality Indicator Variables
No Indicator Test Validity Composite Reliability Loading T-Statistic Criteria
1 RQ1 0822 4959 valid 0731 2 RQ2 0812 5508 valid
3 RQ3 0785 5318 valid
Sources Primary data were processed in 2014
Table 3 is the result of convergent validity test 3 indicators of relationship quality has a loading factor values more than 05 and the value of the T statistic is higher than the T table by 196 so that all indicators of relationship quality can be said to be valid The order of the strongest to the weakest indicator is RQ1 RQ2 and RQ3 Based on the composite reliability test of the indicators measuring construction it showes a satisfactory results in the amount of 0731 meaning that the relationship quality constructs can provide relatively similar results if it is measured again by the same subjects
The indicator of Customer value consists of 5 indicators the connection with the commpany (CV1) goodwill (CV2) word of mouth (CV3) affective commitment (CV4) and intent to do business (CV5) The result of outer model is in Table 4
Table 4 Test Results of Validity and Reliability of Customer value Indicator Variables
No Indicator Test Validity Composite Reliability Loading T-Statistic Criteria
1 CV1 0 815 9 382 valid
0860 2 CV2 0 752 6 211 valid 3 CV3 0 712 4 022 valid 4 CV4 0 886 7 349 valid 5 CV5 0 837 7 649 valid
Table 4 is the result of convergent validity test 5 indicators of customer value has a
loading factor value more than 05 and the value of statistical Tgt T Table by 196 so that all indicators of customer value can be said to be valid The order of the strongest to the weakest indicator is CV4 CV5 CV1 CV2 and CV3 Based on the composite reliability test of indicators measuring the block construct it shows a satisfactory results in the amount of 0860 meaning that the construct of customer value can provide relatively similar results if it is measured again by the same subjects Inner PLS model results
Inner models describes the relationship among latent variables based on substantive theory The results of the bootstrapping output graphs display the relationship among variables such as customer engagement relationship quality and customer value as shown in Figure 2
1st Piksi International Conference on Knowledge and Sciences 2014 Page | 14
Based on calculations in Figure 2 It is known that the direct influence of customer engagement on customer value is equal to 0491 with the indirect influence of 0984 x 0507 = 0499 It means that the indirect influence is higher than the direct Thus the relationship quality variable is the path of the relationship between the customer engagement and customer value Briefly it means that customer engagement can directly improve customer value by trying to increase the relationship quality first
Sources Primary data processed 2014 Figure 1
The relationship Model between the Customer Engagement Relationship quality and Customer value of PT Siba Courier Indonesia
Figure 1 also shows the magnitude of the determination coefficient The coefficient of determination is used to recognize how significant the influence of exogenous variables toward endogenous the higher the value of the coefficient of determination the higher the influence of exogenous variables on endogenous will be R-square value generated from the relationship between customer engagement with the relationship quality is 0969 meaning that the variation of relationship quality which can be explained by customer engagement is 969 while the remaining 31 is obtained from other variables Then R-square value of the relationship model between customer engagement relationship quality and customer value is 0988 it means that the variation of customer value that can be explained by the relationship quality and customer engagement is 988 while the remaining 12 are determined by other variables
Then the hypothesis test is performed by looking at the value of t count if tcount is higher than ttable (alpha 5 = 196) then the alternative hypothesis (H a) is accepted and H 0 is rejected and so that for the opposite Based on the PLS test the results of testing the relationship among variables can be seen in Table 9 and Figure 3
Table 5 Results of Inner Weight
No The relationship among variables Original Sample (O) T Statistics (| O Sterr |) Criteria
1 CE -gt CV 0491 2312 Significant 2 CE -gt RQ 0984 110053 Significant 3 RQ -gt CV 0507 2383 Significant
Sources Primary data processed 2014
1st Piksi International Conference on Knowledge and Sciences 2014 Page | 15
1 The first hypothesis the customer engagement significantly influences the relationship quality Based on the PLS calculations result in Table 8 testing the first hypothesis about the
influence of customer engagement on relationship quality it is obtained the value of the estimated coefficient (β) of 0984 with t statistic value of 110053 This result is much higher than t-table value which is only 196 Then it can be concluded that there is a positive significant influence on the customer engagement variable toward the relationship quality Thus the first hypothesis is accepted
2 The second hypothesis the customer engagement significantly influences the customer value Based on the PLS calculations result in Table 9 testing the second hypothesis about the
influence of customer engagement toward customer value it is obtained the value of the estimated coefficient (β) of 0491 with t statistic value of 2312 This result is higher than t-table value which is only 196 So it can be concluded that there is a positive significant influence of the customer engagement variable toward customer value Thus the second hypothesis is accepted
3 The third hypothesis relationship quality significantly influence customer value Based on the PLS calculations result in Table 9 testing the third hypothesis about the
influence of relationship quality on customer value it is obtained the value of the estimated coefficient (β) of 0507 with t statistic value of 2383 This result is higher than t-table value which is only 196 So it can be concluded that there is a positive significant influence of the relationship quality variable on customer value Thus the third hypothesis is accepted Sobel Test Results
Sobel test is conducted by testing the strength of the indirect influence of independent variables (customer engagement) toward dependent variable (customer value) through intervening variable (relationship quality) This test is done by Online Sobel Test Calculator for the Significance of Mediation by entering the regression coefficient and standard error values of the customer engagement variables to the relationship quality and the regression coefficient and standard error values of the relationship quality variable to customer value in which it gets the result as follows
Figure 4
Sobel Test Results Sobel test shown in Figure 4 shows the Sobel test statistic value of 23797 with a one-
side significance value of 0009 because the significance value is lt005 therefore it can be said that the relationship quality is the intervening variable of the correlation of customer engagement and customer value
E DISCUSSION In this study Customer engagement positively influences relationship quality it means
that the better the customer engagement the better the relationship quality between the customer and the company By involving customers such as Inviting them to share about the things to improve the performance of the company or promote cooperation between companies and customers (share) inviting customers to know more about the company (learning) motivating customers to inform others about the companys products or services (advocating) motivating customers to promote products services of the company (socialization) and motivating customers to contribute ideas that might contribute to the improvement of performance and service of the companies (co-developing) then it will be able to create a good quality relationships between the companies and customers
1st Piksi International Conference on Knowledge and Sciences 2014 Page | 16
This is in line with the findings by Saks (2006) which states that the employee engagement has been implemented as a means to explore and explain the organizational commitment and behaviors of the members and also applied as a predictor of customer ratings toward the companies Furthermore the finding of the study is also in accordance with the opinion of Salanova et al (2005) that engagement has also been recognized as a way to improve morale cohesion and psychological relationship between the customer and the company or organization
The quality of a good relationship is manifested by the growth of customer trust the presence of customer commitment to always use the companys services and customer satisfaction with the overall service provided by the company
Customer engagement in this study positively contribute to customer value the better the company does customer engagement efforts it will contribute to higher customer value Involving customers such as inviting them to share about the things to improve the performance of the company or promote cooperation between companies and customers (share) inviting customers to know more about the company (learning) motivating the customer to inform others about product and service of companies (advocating) motivating customers to promote products services company (socialization) and motivating customers to contribute ideas to improve the performance and service companies (co-developing) will be able to create high customer value
The studys findings are in line with the study conducted by Li and Dant in Vivek (2011) which concludes that the intensity of customer engagement will be positively related to the value received by customers By the time customers are treated very well and considered as part of the company it will raise the principle of reciprocity in which the customer will give the good attitude as good as what they have received by the company (Bagozzidalam Vivek 2011)
Companies Interaction to customers via initiative engagement strategies will make the reciprocity norm appear to customersrsquo engagement If the company successfully engage customers customers will recognize the benefits received and give return values to indicate behavioral intentions In the return of value received customers will have a good faith and affective commitment to the organization and may be willing to develop a strong relationship with the organization
Moreover in this study relationship quality give positive influence on customer value The better relationship quality the better the customer value will be It means that relationship quality is one of the important factors to increase customer value Relationship quality is needed to drive steer cultivate and maintain customer behavior towards the achievement of better corporate performance
Relationship quality in this study also serves as a mediator of the influence of customer engagement toward customer value Customer value will be stronger with the role of relationship quality in it Starting from involving customers by sharing it will create a good relationship between the company and customers Then One of the good form of relationship is the emergence of self-confidence of the customers toward the the company Based on these good relationships created customers will give a positive assessment to the company by the form of manifesting customer awareness of the companys survival (affective commitment) which in this study seems to show the highest loading value of all indicators of customer value
Empirically findings of this study support the finding by John (2008) that concludes that the success in fostering good relationship with customers is actually a beneficial thing that can bring profit for both parties The relationship created between the company and the customer will make communication better
After feeling satisfied and having created a good relationship then the customers will tell the companyrsquos advantage to others The information spread by the customer can build a good image about the company and it can bring in new clients or customers for the companyBy a good relationship not only company but also customers will get profits and advantages Benefits and advantages gained by customers also vary eg special price given by the company and get extra service for being a loyal customer
F CONCLUSION Based on the analysis and discussion in this study it obtains a general conclusion as
follows
1st Piksi International Conference on Knowledge and Sciences 2014 Page | 17
1) Customer engagement have a positive significant influence on relationship quality It means that the better the customer engagement the better the relationship quality will be and the increased sharing programs between companies and customers is a way that can be used to improve customer engagement and gain trust of customers to be better 2) Customer engagement have a positive significant influence on customer value It means that the better the customer engagement the better the customer value will be and the improvement of sharing programs between companies and customers is a way that can be used to improve customer engagement and to establish customer awareness of the companiesrsquo survival company (affective commitment) And 3) Relationship quality have a positive significant influence on customer value it means that the better the relationship quality the better the customer value and establishing trust of the customer is a way to improve the quality of relationships and increase customer awareness of companies survival (affective commitment)
This study has limitations that is the study results can not be generalized beyond the sample of the study because the respondents used is only limited to customers of PT Siba Courier Indonesia representing Semarang and Jakarta city Thus to conduct similar study involving all customers of PT Siba Courier Indonesia spreading in many cities around Indonesia still need to be considered
BIBLIOGRAPHY Brodie JR Ilic A Hollebeek L 2011 Consumer engagement in a virtual brand community An
exploratory analysis Journal of Business Research xxx (2011) xxxndashxxx Cateora Philip R Graham John L 2007 Pemasaran Internasional 13th Edition Jakarta Salemba
Empat Chan S 2003 Relationship Marketing Inovasi Pemasaran yang Membuat Pelanggan Bertekuk
Lutut Jakarta Penerbit PT Gramedia Pustaka Utama Copulsky J R and M J Wolf 1990 Relationship Marketing Positioning for the Future The
Journal of Business Strategy Fandy Tjiptono 2005 Pemasaran Jasa 1st Edition Malang Bayu Media Publishing Fuad Masrsquoud 2004 Survai Diagnosis Organisasional Konsep dan Aplikasi Semarang Diponegoro
University Press Groumlnroos C 1994 ldquoFrom Marketing Mix to Relationship Marketing Towards a Paradigm Shift in
Marketingrdquo Management Decision Vol 32 No 2 pp 4-20 Hollebeek LD 2009 Demystifying Customer Engagement Toward the Development of a
Conceptual Model AMZNAC 2009 1-9 Imam Ghozali 2006 Structural Equation Modeling Metode Alternatif denganPLS (Kedua ed)
Semarang Diponegoro University Press Kotler Philip amp Keller Kevin Lane 2009 Manajemen Pemasaran Edisi 13 Jilid 2 Jakarta PT
Indeks Kotler Philip 2007 Manajemen Pemasaran Analisis Perencanaan Pengendalian Prentice Hall
Edisi Bahasa Indonesia Jakarta Salemba Empat Kumar V Lerzan A Bas D Rajkumar V Thorsten W dan Sebastian T 2010 Undervalued or
Overvalued Customers Capturing Total Customer engagement Value Journal of Service Research 13(3) 297-310
MacInnis dan Mello Jefrey A 2001 StrategicHuman Resources Management International Edition South Western Publishing Ohio
Mowen John C dan Minor M 2002 Perilaku Konsumen Jilid 1 Edisi Kelima (terjemahan) Jakarta Erlangga
Nammir Darman Sulaiman Sadiq Bayar Mohamed Rasheed Marane Aree Mohammed Ali 2012 Determine the Role of Customer engagement on Relationship Quality and Relationship Performance European Journal of Business and Management wwwiisteorgISSN 2222-1905 (Paper) ISSN 2222-2839 (Online) Vol 4 No11 2012
Peter Paul J and Olson Jerry C 2002Perilaku Konsumen dan StrategiPemasaran Edisi ke Empat (Terjemahan) Jakarta Penerbit Erlangga
1st Piksi International Conference on Knowledge and Sciences 2014 Page | 18
Rustono 2010 Faktor-faktor yang Mempengaruhi Implementasi Customer Relationship Mangement (CRM) untuk Meningkatkan Loyalitas PelangganRagamJurnal Pengembangan Humaniora Vol 10 No 3 Desember 2010 153-160
Ryals L and S Knox 2001 ldquoCross-Functional Issue in the Implementation of Relationship Marketing Through Customer relationship Managementrdquo European Management Journal Vol 19 No 5 pp 534-542
Setiadi J Nugroho 2005 Perilaku Konsumen Jakarta Kencana Sugiyono 2008 Metode Penelitian Kuantitatif Kualitatif dan RampD Bandung Alfabeta Tjahyadi RA 2010Membangun Hubungan Jangka Panjang Pelanggan Melalui Relationship
Marketing httpmajourmaranathaeduindexphpjurnal-manajemenarticleview178 Vivek SD 2011 A Scale Of Consumer Engagement Disertasi Department of Management and
Marketing in the Graduate School of The University of Alabama Yahya Y 2008 Pengaruh Customer Relationship Management (CRM) dalam Meningkatkan loyalitas
Pelanggan httpfebudiluhuracidwp-contentuploads201105Pengaruh-Customer-Relationship-Management-Dalam-Meningkatka-Loyalitas-Pelanggan-Yohanes-Yahyapdf
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Published by LPPM Pollteknlk Piksi GaneshO
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(LFA) MODEL AS AN APPROACH IN Piksi Ganesha EFfiCI ENCY OF MEDICAL RECORD
8S K Prihartono AH Polytechnic MANAGEMENT BY BARBER 8S Ba ndung JHONSON M ETHOD FOR POLICY
DECISION IN AL ISLAM HOSPITAL
BANOUNC
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87 Rossaline Andrian Ciputra Universiry DESC RIPTION FROM SADHANA
87Surabaya YOGA STUDIO MEMBERS IN
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THE IMPLEMENTATION OF CODING
Nuryati Surya Gaja h Mada DIAGNOSIS AND PROCEDURES IN
92 PANT RAPIH HO SPITAL 92Nugroho M2rkus University
YOGYAKARTA BASED SM
ELEMENTS OF MANAGEMENT
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MEOKINE (CA M) SERVICES IN SURABAYA-_ ----- -_
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PANTI RAPIH HOSPITAL
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NURSERY ABILITY AND WORK 98
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SOIO-HUMANIORA
NO NAME TITLE PACE Noremy Md Akhir
Universili Sains FLOO D DISASTERS IN MALAYSIA
102 Azlinda Alman M Malays ia (U SM)
THE PSYCHOSOCIAL ISSUES AND 102 Fadhil Nordin INTERVENTION -
LONG DISTANCE FAMILY
Bunda Mulia CO MMUNICATON (CASE STUDY
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1st Piksi International Conference on Knowledge and Sciences 2014 Page | 9
THE ROLE OF DYNAMIC MODEL OF CUSTOMER ENGAGEMENT TOWARD CUSTOMER VALUE
Ardian Adhiatma
M A Irfan Rahmana Dept of Management Faculty of Economics UNISSULA Semarang Indonesia
E-mail ardianunissulaacid irfanrahmanayahoocom
ABSTRACT The added value of the company at this time can not always be built only through customer satisfaction but more to factors such as communication coaching and sharing of the company as stated in the customer engagement The purpose of this study is to know the role of dynamic models of customer engagement toward customer value Explanatory research is conducted on 50 owners managers and authorized personnel in corporate decision The sampling used is purposive sampling Furthermore there are three variables involved in this study those are customer engagement relationship quality and customer value The data of these three variables is obtained from questionnaires Partial least squares analysis with smart PLS 20 is used to determine the correlation within variables Customer engagement shows a positive results and significant influence to customer value either directly or indirectly through the relationship quality in which the influence of indirect coefficient (0499) is higher than the direct coefficient (0491) So it can be concluded that customer engagement has a role in improving customer value through relationship quality
Keywords customer engagement relationship quality customer value
1st Piksi International Conference on Knowledge and Sciences 2014 Page | 10
A INTRODUCTION Nowadays Challenges in the business field have become increasingly tight and
complicated because the presence of dynamical complexities in the market values in which the needs and demands of customers as main stakeholders have changed massively The change of customers condition in demand occur because the presences of information and choices have grown rapidly Not only self-needs experiencing a change but also the ways customers access the needs also change from time to time In the past customer satisfactions were mostly determined by the quality of productsservices pricing and after-sales service Briefly its only three aspects that got too much attention marketers only focused in improving the quality of products pressing price efficiency to be affordable and opening outlets of after sales service Yet in the present day these aspects are considered not meet expectations customers want more of these aspects as a prerequisite for their satisfaction In conclusion it means that the needs of customers expectations has changed so that the programs and approaches to satisfy customers should also be conducted (Rustono 2010)
The phenomena as mentioned above also occur in courier Industries The rapid competition of courier industries in Indonesia is not only caused by globalization but also customers awareness of price and high demands The rapid growth of communication and technology also contribute to the increase of competition intensity since it gives customers access to more information about the wide range of products or services offered These conditions lead customers to have more choices in spending their money
The added value of the company at this time can not always be built only through customer satisfaction but also more to other factors such as communication coaching and sharing of the company as stated in the customer engagement Customer engagement is the peak of the companys relationship with customers to survive and thrive to launch new products to pay more attention into competitor products to sell more products from competitors Besides that the companies also have to implement Customer Relationship Management whereby customer engagement is one of its components At the level of customer engagement relationship built has already been a combination of rational and emotional aspects The quality of this relationship has reached the level of the inner closeness and long-term dimension (Shevlin 2011 in Vivek 2011)
The concept of customer engagement has also been frequently considered as a potential superior strength to predict and to explain the context of the service retention and customer loyalty (Bowden 2009 in Hollebeek 2009) Furthermore Customer engagement is a promising new concept and expected to exceed the contribution given by traditional relational construction including perceived quality customer engagement and satisfaction in explaining and predicting customer value (Hollebeek 2009) Customer value is defined as the emotional bond that exists between customers and manufacturers because the customers use the products and services of the company and then find that the product or service give them additional value (Tjiptono 2005)
The study by Hollebeek (2009) concludes that the customers engagement improve loyalty satisfaction empowerment connection emotional bonding trust and commitment Furthermore Kumar et al (2010) emphasizes that customers can be involved in creating value for the company in various ways first the customer lifetime value (customer buying behavior) second the customer referrals value (related to referral incentives of new customers) third customer influence value (related to customers behavior to influence other customers which increases the acquisition retention and share of wallet through communication among customers and existing prospects) and fourth is the customer knowledge value (surplus for the company with feedback from customers) Customer engagemet value (CEV) provides a comprehensive framework that can ultimately lead to more efficient marketing strategies that enable a higher long-term contribution to customers The study by Vivek (2011) proves that customers engagement in turn can positively influence the companys relationship with customers and raises good faith and intention to do business with the company
The capability of Customer engagement in predicting customer value has been adopted as a marketing strategy by PT Siba Courier Indonesia This strategy is implemented because until this time if it is compared with its competitors PT Siba Courier Indonesia is far behind from their competitors in terms of the availability of fleet infrastructure and age In the future PT Siba Courier Indonesia is predicted to be abandoned by its customers if only rely on the availability of
1st Piksi International Conference on Knowledge and Sciences 2014 Page | 11
limited facilities and infrastructure The fact that the customers of PT Siba Courier Indonesia both in Jakarta and Semarang are still loyal to use the services of this company and even if they keep patient waiting queue to obtain service because the company have overload in order delivery If in general to improve the competitiveness and to maintain the survival of the company efforts are made through internal factors (improvement of service quality provision of infrastructure and facilities services technological advances etc) in this study exactly at PT Siba Courier Indonesia the related cases are not found Therefore it is interesting to do a more focused study on the role of dynamic models of customer engagement toward customer value in the PT Siba Courier Indonesia
B LITERATURE REVIEW
Customer Engagement Customer engagement (CE) is the intensity of customer participation by representatives
of the organization and through other customers in the process of collaborative knowledge exchange (Wagner and Majchrzak 200720) in Vivek (2011) Engagement refers to customersrsquo perception toward the importance or personal relevance of objects events and activities In this case Customers will acquire that a certain product has a personal relevance and relationship with them Relationship quality
The relationship quality or connections is represented through real-image of relationship and individual experience of each party in the relationship A subjective connection is obtained through positive passion energy matter and togetherness (Quinn and Dutton 2005 Heaphy amp Dutton 2008 in Vivek 2011) in which Two people involved in the connection and active participation (Heaphy and Dutton Vivek 2008267 in 2011)
In this study connection is defined as a positive emotional relationship that customers have a sense of belonging to the companies The quality of relationship construction is based on the amount of time spent in the workplace employees are significantly influenced by their relationships formed in the workplace so the connection significantly influences the function of the organization Customer value
The concept of customer value (CV) by Kotler and Keller (2009 14) is the combination of quality service price of products or services Furthermore Customer value is the dispute between the amount of value for customers and the total cost of customers and the amount of value for customers are customers expected profit of certain goods or services
According to Best in (Sumarwan et al 2010 30) the customer value is a benefit or profit obtained by customers lessened by the cost of the purchase Based on this concept customer value is derived from the economic customer and emotional benefits Economic Benefit is obtained from surplus of price and cost but not the cost of purchase which includes acquisition ownership usage maintenance repairment and disposal costs Customers Benefit is derived from the product appearance service and reputation Emotional Benefit is the overplus of the product to meet the emotional needs of the customer associated with psychological needs types of customers personality and customer personal value
C RESEARCH METHOD
The population of this study is all customers of PT Siba Courier Indonesia totaling 40 companies spread over two cities Semarang and Jakarta Because of limited number of population the total population is all designated as sample or census research Moreover it is also with the consideration that using total population as a sample will get a more representative description and minimize the error rates so that the data obtained will be close the real value The sample proposed is the companies which at least for three years have actively used services of PT Siba Courier Indonesia Then from each company it is selected two people from the owner and the manager or the other person who has the authority to make decision (the decision maker)
The data collection method is purposive sampling and the analysis techniques is performed by Partial Least Square and Sobel Test
Table 1
1st Piksi International Conference on Knowledge and Sciences 2014 Page | 12
Research Variables and Indicators No Variables Indicators Shape
1 Customer engagement is the level of customers attention to the company
Sharing (CE1)
Likert Scale 1-5
Learning (CE2) Advocating (CE3) Socialization (CE4) Co-developing (CE5)
2 Relationship quality is quality of the relationship created between customer and companies
Trust (RQ1) Commitment (RQ2) Satisfaction (RQ3)
3
Customer value is the matched value perceived by customers on the services prices of the products quality received by them
Connection with Company (CV1) Goodwill (CV2) Word of Mouth (CV3) Affective Commitment (CV4) Intent to do Business (CV5)
Data Analysis
PLS (Partial Least Square) is used to examine and test the hypothesis proposed PLS has advantages that lsquoit involves no assumptions about the population or scale of measurement (Fornell amp Bookstein 1982) and consequently it works without distributional assumptions and by nominal ordinal and interval scaled variables However one has to bear in mind that the PLS like any statistical technique also requires certain assumptions to be fulfilled Apart from the standard ones (ie the classical Gaussian linear ordinary least squares) regression models (see eg Gujarati 1995) the most important predictor of the assumption is the specification (Chin amp Newsted 1999)
D FINDINGS Based on data analysis of the study it can be explained the analysis of partial least
squares (PLS) as follows Inner PLS model results
The indicators of customer engagement consist of sharing (CE1) learning (CE2) advocating (CE3) socialization (CE4) and co-developing (CE5) The outline of the PLS model for the indicators proposed is shown in Table 2
Table 2 Test Results of Validity and Reliability of Customer Engagement Indicator Variables
No Indicator Test Validity Composite Reliability Loading T-Statistic Criteria
1 CE 1 0919 9438 valid
0876 2 CE 2 0753 5330 valid 3 CE 3 0711 4915 valid 4 CE 4 0851 7639 valid 5 CE 5 0854 6314 valid
Sources Primary data processed in 2014
Table 2 is the result of convergent validity test 5 indicators of customer engagement have loading factor value more than 05 by the T statistical value of all indicators greater than T Table by 196 so that all indicators of customer engagement can be said to be valid The order of the strongest to the weakest indicator is CE1 (sharing) CE5 (co-developing) CE4
1st Piksi International Conference on Knowledge and Sciences 2014 Page | 13
(socialization) CE2 (learning) and CE3 (advocating) Based on the composite reliability test of indicator measuring the construct it shows a satisfactory results in the amount of 0876 meaning that the construct of customer engagement can provide relatively similar results when it is measured again by the same subjects
The indicator of Relationship quality consists of three indicators namely trust (RQ1) commitment (RQ2) and satisfaction (RQ3) The results of the PLS model for the outer indicators is shown in Table 3 below
Table 3
Test Results of Validity and Reliability of Relationship Quality Indicator Variables
No Indicator Test Validity Composite Reliability Loading T-Statistic Criteria
1 RQ1 0822 4959 valid 0731 2 RQ2 0812 5508 valid
3 RQ3 0785 5318 valid
Sources Primary data were processed in 2014
Table 3 is the result of convergent validity test 3 indicators of relationship quality has a loading factor values more than 05 and the value of the T statistic is higher than the T table by 196 so that all indicators of relationship quality can be said to be valid The order of the strongest to the weakest indicator is RQ1 RQ2 and RQ3 Based on the composite reliability test of the indicators measuring construction it showes a satisfactory results in the amount of 0731 meaning that the relationship quality constructs can provide relatively similar results if it is measured again by the same subjects
The indicator of Customer value consists of 5 indicators the connection with the commpany (CV1) goodwill (CV2) word of mouth (CV3) affective commitment (CV4) and intent to do business (CV5) The result of outer model is in Table 4
Table 4 Test Results of Validity and Reliability of Customer value Indicator Variables
No Indicator Test Validity Composite Reliability Loading T-Statistic Criteria
1 CV1 0 815 9 382 valid
0860 2 CV2 0 752 6 211 valid 3 CV3 0 712 4 022 valid 4 CV4 0 886 7 349 valid 5 CV5 0 837 7 649 valid
Table 4 is the result of convergent validity test 5 indicators of customer value has a
loading factor value more than 05 and the value of statistical Tgt T Table by 196 so that all indicators of customer value can be said to be valid The order of the strongest to the weakest indicator is CV4 CV5 CV1 CV2 and CV3 Based on the composite reliability test of indicators measuring the block construct it shows a satisfactory results in the amount of 0860 meaning that the construct of customer value can provide relatively similar results if it is measured again by the same subjects Inner PLS model results
Inner models describes the relationship among latent variables based on substantive theory The results of the bootstrapping output graphs display the relationship among variables such as customer engagement relationship quality and customer value as shown in Figure 2
1st Piksi International Conference on Knowledge and Sciences 2014 Page | 14
Based on calculations in Figure 2 It is known that the direct influence of customer engagement on customer value is equal to 0491 with the indirect influence of 0984 x 0507 = 0499 It means that the indirect influence is higher than the direct Thus the relationship quality variable is the path of the relationship between the customer engagement and customer value Briefly it means that customer engagement can directly improve customer value by trying to increase the relationship quality first
Sources Primary data processed 2014 Figure 1
The relationship Model between the Customer Engagement Relationship quality and Customer value of PT Siba Courier Indonesia
Figure 1 also shows the magnitude of the determination coefficient The coefficient of determination is used to recognize how significant the influence of exogenous variables toward endogenous the higher the value of the coefficient of determination the higher the influence of exogenous variables on endogenous will be R-square value generated from the relationship between customer engagement with the relationship quality is 0969 meaning that the variation of relationship quality which can be explained by customer engagement is 969 while the remaining 31 is obtained from other variables Then R-square value of the relationship model between customer engagement relationship quality and customer value is 0988 it means that the variation of customer value that can be explained by the relationship quality and customer engagement is 988 while the remaining 12 are determined by other variables
Then the hypothesis test is performed by looking at the value of t count if tcount is higher than ttable (alpha 5 = 196) then the alternative hypothesis (H a) is accepted and H 0 is rejected and so that for the opposite Based on the PLS test the results of testing the relationship among variables can be seen in Table 9 and Figure 3
Table 5 Results of Inner Weight
No The relationship among variables Original Sample (O) T Statistics (| O Sterr |) Criteria
1 CE -gt CV 0491 2312 Significant 2 CE -gt RQ 0984 110053 Significant 3 RQ -gt CV 0507 2383 Significant
Sources Primary data processed 2014
1st Piksi International Conference on Knowledge and Sciences 2014 Page | 15
1 The first hypothesis the customer engagement significantly influences the relationship quality Based on the PLS calculations result in Table 8 testing the first hypothesis about the
influence of customer engagement on relationship quality it is obtained the value of the estimated coefficient (β) of 0984 with t statistic value of 110053 This result is much higher than t-table value which is only 196 Then it can be concluded that there is a positive significant influence on the customer engagement variable toward the relationship quality Thus the first hypothesis is accepted
2 The second hypothesis the customer engagement significantly influences the customer value Based on the PLS calculations result in Table 9 testing the second hypothesis about the
influence of customer engagement toward customer value it is obtained the value of the estimated coefficient (β) of 0491 with t statistic value of 2312 This result is higher than t-table value which is only 196 So it can be concluded that there is a positive significant influence of the customer engagement variable toward customer value Thus the second hypothesis is accepted
3 The third hypothesis relationship quality significantly influence customer value Based on the PLS calculations result in Table 9 testing the third hypothesis about the
influence of relationship quality on customer value it is obtained the value of the estimated coefficient (β) of 0507 with t statistic value of 2383 This result is higher than t-table value which is only 196 So it can be concluded that there is a positive significant influence of the relationship quality variable on customer value Thus the third hypothesis is accepted Sobel Test Results
Sobel test is conducted by testing the strength of the indirect influence of independent variables (customer engagement) toward dependent variable (customer value) through intervening variable (relationship quality) This test is done by Online Sobel Test Calculator for the Significance of Mediation by entering the regression coefficient and standard error values of the customer engagement variables to the relationship quality and the regression coefficient and standard error values of the relationship quality variable to customer value in which it gets the result as follows
Figure 4
Sobel Test Results Sobel test shown in Figure 4 shows the Sobel test statistic value of 23797 with a one-
side significance value of 0009 because the significance value is lt005 therefore it can be said that the relationship quality is the intervening variable of the correlation of customer engagement and customer value
E DISCUSSION In this study Customer engagement positively influences relationship quality it means
that the better the customer engagement the better the relationship quality between the customer and the company By involving customers such as Inviting them to share about the things to improve the performance of the company or promote cooperation between companies and customers (share) inviting customers to know more about the company (learning) motivating customers to inform others about the companys products or services (advocating) motivating customers to promote products services of the company (socialization) and motivating customers to contribute ideas that might contribute to the improvement of performance and service of the companies (co-developing) then it will be able to create a good quality relationships between the companies and customers
1st Piksi International Conference on Knowledge and Sciences 2014 Page | 16
This is in line with the findings by Saks (2006) which states that the employee engagement has been implemented as a means to explore and explain the organizational commitment and behaviors of the members and also applied as a predictor of customer ratings toward the companies Furthermore the finding of the study is also in accordance with the opinion of Salanova et al (2005) that engagement has also been recognized as a way to improve morale cohesion and psychological relationship between the customer and the company or organization
The quality of a good relationship is manifested by the growth of customer trust the presence of customer commitment to always use the companys services and customer satisfaction with the overall service provided by the company
Customer engagement in this study positively contribute to customer value the better the company does customer engagement efforts it will contribute to higher customer value Involving customers such as inviting them to share about the things to improve the performance of the company or promote cooperation between companies and customers (share) inviting customers to know more about the company (learning) motivating the customer to inform others about product and service of companies (advocating) motivating customers to promote products services company (socialization) and motivating customers to contribute ideas to improve the performance and service companies (co-developing) will be able to create high customer value
The studys findings are in line with the study conducted by Li and Dant in Vivek (2011) which concludes that the intensity of customer engagement will be positively related to the value received by customers By the time customers are treated very well and considered as part of the company it will raise the principle of reciprocity in which the customer will give the good attitude as good as what they have received by the company (Bagozzidalam Vivek 2011)
Companies Interaction to customers via initiative engagement strategies will make the reciprocity norm appear to customersrsquo engagement If the company successfully engage customers customers will recognize the benefits received and give return values to indicate behavioral intentions In the return of value received customers will have a good faith and affective commitment to the organization and may be willing to develop a strong relationship with the organization
Moreover in this study relationship quality give positive influence on customer value The better relationship quality the better the customer value will be It means that relationship quality is one of the important factors to increase customer value Relationship quality is needed to drive steer cultivate and maintain customer behavior towards the achievement of better corporate performance
Relationship quality in this study also serves as a mediator of the influence of customer engagement toward customer value Customer value will be stronger with the role of relationship quality in it Starting from involving customers by sharing it will create a good relationship between the company and customers Then One of the good form of relationship is the emergence of self-confidence of the customers toward the the company Based on these good relationships created customers will give a positive assessment to the company by the form of manifesting customer awareness of the companys survival (affective commitment) which in this study seems to show the highest loading value of all indicators of customer value
Empirically findings of this study support the finding by John (2008) that concludes that the success in fostering good relationship with customers is actually a beneficial thing that can bring profit for both parties The relationship created between the company and the customer will make communication better
After feeling satisfied and having created a good relationship then the customers will tell the companyrsquos advantage to others The information spread by the customer can build a good image about the company and it can bring in new clients or customers for the companyBy a good relationship not only company but also customers will get profits and advantages Benefits and advantages gained by customers also vary eg special price given by the company and get extra service for being a loyal customer
F CONCLUSION Based on the analysis and discussion in this study it obtains a general conclusion as
follows
1st Piksi International Conference on Knowledge and Sciences 2014 Page | 17
1) Customer engagement have a positive significant influence on relationship quality It means that the better the customer engagement the better the relationship quality will be and the increased sharing programs between companies and customers is a way that can be used to improve customer engagement and gain trust of customers to be better 2) Customer engagement have a positive significant influence on customer value It means that the better the customer engagement the better the customer value will be and the improvement of sharing programs between companies and customers is a way that can be used to improve customer engagement and to establish customer awareness of the companiesrsquo survival company (affective commitment) And 3) Relationship quality have a positive significant influence on customer value it means that the better the relationship quality the better the customer value and establishing trust of the customer is a way to improve the quality of relationships and increase customer awareness of companies survival (affective commitment)
This study has limitations that is the study results can not be generalized beyond the sample of the study because the respondents used is only limited to customers of PT Siba Courier Indonesia representing Semarang and Jakarta city Thus to conduct similar study involving all customers of PT Siba Courier Indonesia spreading in many cities around Indonesia still need to be considered
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Conceptual Model AMZNAC 2009 1-9 Imam Ghozali 2006 Structural Equation Modeling Metode Alternatif denganPLS (Kedua ed)
Semarang Diponegoro University Press Kotler Philip amp Keller Kevin Lane 2009 Manajemen Pemasaran Edisi 13 Jilid 2 Jakarta PT
Indeks Kotler Philip 2007 Manajemen Pemasaran Analisis Perencanaan Pengendalian Prentice Hall
Edisi Bahasa Indonesia Jakarta Salemba Empat Kumar V Lerzan A Bas D Rajkumar V Thorsten W dan Sebastian T 2010 Undervalued or
Overvalued Customers Capturing Total Customer engagement Value Journal of Service Research 13(3) 297-310
MacInnis dan Mello Jefrey A 2001 StrategicHuman Resources Management International Edition South Western Publishing Ohio
Mowen John C dan Minor M 2002 Perilaku Konsumen Jilid 1 Edisi Kelima (terjemahan) Jakarta Erlangga
Nammir Darman Sulaiman Sadiq Bayar Mohamed Rasheed Marane Aree Mohammed Ali 2012 Determine the Role of Customer engagement on Relationship Quality and Relationship Performance European Journal of Business and Management wwwiisteorgISSN 2222-1905 (Paper) ISSN 2222-2839 (Online) Vol 4 No11 2012
Peter Paul J and Olson Jerry C 2002Perilaku Konsumen dan StrategiPemasaran Edisi ke Empat (Terjemahan) Jakarta Penerbit Erlangga
1st Piksi International Conference on Knowledge and Sciences 2014 Page | 18
Rustono 2010 Faktor-faktor yang Mempengaruhi Implementasi Customer Relationship Mangement (CRM) untuk Meningkatkan Loyalitas PelangganRagamJurnal Pengembangan Humaniora Vol 10 No 3 Desember 2010 153-160
Ryals L and S Knox 2001 ldquoCross-Functional Issue in the Implementation of Relationship Marketing Through Customer relationship Managementrdquo European Management Journal Vol 19 No 5 pp 534-542
Setiadi J Nugroho 2005 Perilaku Konsumen Jakarta Kencana Sugiyono 2008 Metode Penelitian Kuantitatif Kualitatif dan RampD Bandung Alfabeta Tjahyadi RA 2010Membangun Hubungan Jangka Panjang Pelanggan Melalui Relationship
Marketing httpmajourmaranathaeduindexphpjurnal-manajemenarticleview178 Vivek SD 2011 A Scale Of Consumer Engagement Disertasi Department of Management and
Marketing in the Graduate School of The University of Alabama Yahya Y 2008 Pengaruh Customer Relationship Management (CRM) dalam Meningkatkan loyalitas
Pelanggan httpfebudiluhuracidwp-contentuploads201105Pengaruh-Customer-Relationship-Management-Dalam-Meningkatka-Loyalitas-Pelanggan-Yohanes-Yahyapdf
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Herman Susanto Padjadjaran DISTRICT OF KIA RAP EDES University PURWAKARTA REG ENCY
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Piksi Ganesha AND CHAMCTERISTICS or
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EXCE LLENT SERVICE IN PT RISTRA GROUP BAN DUN(
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1st Piksi International Conference on Knowledge and Sciences 2014 Page | 9
THE ROLE OF DYNAMIC MODEL OF CUSTOMER ENGAGEMENT TOWARD CUSTOMER VALUE
Ardian Adhiatma
M A Irfan Rahmana Dept of Management Faculty of Economics UNISSULA Semarang Indonesia
E-mail ardianunissulaacid irfanrahmanayahoocom
ABSTRACT The added value of the company at this time can not always be built only through customer satisfaction but more to factors such as communication coaching and sharing of the company as stated in the customer engagement The purpose of this study is to know the role of dynamic models of customer engagement toward customer value Explanatory research is conducted on 50 owners managers and authorized personnel in corporate decision The sampling used is purposive sampling Furthermore there are three variables involved in this study those are customer engagement relationship quality and customer value The data of these three variables is obtained from questionnaires Partial least squares analysis with smart PLS 20 is used to determine the correlation within variables Customer engagement shows a positive results and significant influence to customer value either directly or indirectly through the relationship quality in which the influence of indirect coefficient (0499) is higher than the direct coefficient (0491) So it can be concluded that customer engagement has a role in improving customer value through relationship quality
Keywords customer engagement relationship quality customer value
1st Piksi International Conference on Knowledge and Sciences 2014 Page | 10
A INTRODUCTION Nowadays Challenges in the business field have become increasingly tight and
complicated because the presence of dynamical complexities in the market values in which the needs and demands of customers as main stakeholders have changed massively The change of customers condition in demand occur because the presences of information and choices have grown rapidly Not only self-needs experiencing a change but also the ways customers access the needs also change from time to time In the past customer satisfactions were mostly determined by the quality of productsservices pricing and after-sales service Briefly its only three aspects that got too much attention marketers only focused in improving the quality of products pressing price efficiency to be affordable and opening outlets of after sales service Yet in the present day these aspects are considered not meet expectations customers want more of these aspects as a prerequisite for their satisfaction In conclusion it means that the needs of customers expectations has changed so that the programs and approaches to satisfy customers should also be conducted (Rustono 2010)
The phenomena as mentioned above also occur in courier Industries The rapid competition of courier industries in Indonesia is not only caused by globalization but also customers awareness of price and high demands The rapid growth of communication and technology also contribute to the increase of competition intensity since it gives customers access to more information about the wide range of products or services offered These conditions lead customers to have more choices in spending their money
The added value of the company at this time can not always be built only through customer satisfaction but also more to other factors such as communication coaching and sharing of the company as stated in the customer engagement Customer engagement is the peak of the companys relationship with customers to survive and thrive to launch new products to pay more attention into competitor products to sell more products from competitors Besides that the companies also have to implement Customer Relationship Management whereby customer engagement is one of its components At the level of customer engagement relationship built has already been a combination of rational and emotional aspects The quality of this relationship has reached the level of the inner closeness and long-term dimension (Shevlin 2011 in Vivek 2011)
The concept of customer engagement has also been frequently considered as a potential superior strength to predict and to explain the context of the service retention and customer loyalty (Bowden 2009 in Hollebeek 2009) Furthermore Customer engagement is a promising new concept and expected to exceed the contribution given by traditional relational construction including perceived quality customer engagement and satisfaction in explaining and predicting customer value (Hollebeek 2009) Customer value is defined as the emotional bond that exists between customers and manufacturers because the customers use the products and services of the company and then find that the product or service give them additional value (Tjiptono 2005)
The study by Hollebeek (2009) concludes that the customers engagement improve loyalty satisfaction empowerment connection emotional bonding trust and commitment Furthermore Kumar et al (2010) emphasizes that customers can be involved in creating value for the company in various ways first the customer lifetime value (customer buying behavior) second the customer referrals value (related to referral incentives of new customers) third customer influence value (related to customers behavior to influence other customers which increases the acquisition retention and share of wallet through communication among customers and existing prospects) and fourth is the customer knowledge value (surplus for the company with feedback from customers) Customer engagemet value (CEV) provides a comprehensive framework that can ultimately lead to more efficient marketing strategies that enable a higher long-term contribution to customers The study by Vivek (2011) proves that customers engagement in turn can positively influence the companys relationship with customers and raises good faith and intention to do business with the company
The capability of Customer engagement in predicting customer value has been adopted as a marketing strategy by PT Siba Courier Indonesia This strategy is implemented because until this time if it is compared with its competitors PT Siba Courier Indonesia is far behind from their competitors in terms of the availability of fleet infrastructure and age In the future PT Siba Courier Indonesia is predicted to be abandoned by its customers if only rely on the availability of
1st Piksi International Conference on Knowledge and Sciences 2014 Page | 11
limited facilities and infrastructure The fact that the customers of PT Siba Courier Indonesia both in Jakarta and Semarang are still loyal to use the services of this company and even if they keep patient waiting queue to obtain service because the company have overload in order delivery If in general to improve the competitiveness and to maintain the survival of the company efforts are made through internal factors (improvement of service quality provision of infrastructure and facilities services technological advances etc) in this study exactly at PT Siba Courier Indonesia the related cases are not found Therefore it is interesting to do a more focused study on the role of dynamic models of customer engagement toward customer value in the PT Siba Courier Indonesia
B LITERATURE REVIEW
Customer Engagement Customer engagement (CE) is the intensity of customer participation by representatives
of the organization and through other customers in the process of collaborative knowledge exchange (Wagner and Majchrzak 200720) in Vivek (2011) Engagement refers to customersrsquo perception toward the importance or personal relevance of objects events and activities In this case Customers will acquire that a certain product has a personal relevance and relationship with them Relationship quality
The relationship quality or connections is represented through real-image of relationship and individual experience of each party in the relationship A subjective connection is obtained through positive passion energy matter and togetherness (Quinn and Dutton 2005 Heaphy amp Dutton 2008 in Vivek 2011) in which Two people involved in the connection and active participation (Heaphy and Dutton Vivek 2008267 in 2011)
In this study connection is defined as a positive emotional relationship that customers have a sense of belonging to the companies The quality of relationship construction is based on the amount of time spent in the workplace employees are significantly influenced by their relationships formed in the workplace so the connection significantly influences the function of the organization Customer value
The concept of customer value (CV) by Kotler and Keller (2009 14) is the combination of quality service price of products or services Furthermore Customer value is the dispute between the amount of value for customers and the total cost of customers and the amount of value for customers are customers expected profit of certain goods or services
According to Best in (Sumarwan et al 2010 30) the customer value is a benefit or profit obtained by customers lessened by the cost of the purchase Based on this concept customer value is derived from the economic customer and emotional benefits Economic Benefit is obtained from surplus of price and cost but not the cost of purchase which includes acquisition ownership usage maintenance repairment and disposal costs Customers Benefit is derived from the product appearance service and reputation Emotional Benefit is the overplus of the product to meet the emotional needs of the customer associated with psychological needs types of customers personality and customer personal value
C RESEARCH METHOD
The population of this study is all customers of PT Siba Courier Indonesia totaling 40 companies spread over two cities Semarang and Jakarta Because of limited number of population the total population is all designated as sample or census research Moreover it is also with the consideration that using total population as a sample will get a more representative description and minimize the error rates so that the data obtained will be close the real value The sample proposed is the companies which at least for three years have actively used services of PT Siba Courier Indonesia Then from each company it is selected two people from the owner and the manager or the other person who has the authority to make decision (the decision maker)
The data collection method is purposive sampling and the analysis techniques is performed by Partial Least Square and Sobel Test
Table 1
1st Piksi International Conference on Knowledge and Sciences 2014 Page | 12
Research Variables and Indicators No Variables Indicators Shape
1 Customer engagement is the level of customers attention to the company
Sharing (CE1)
Likert Scale 1-5
Learning (CE2) Advocating (CE3) Socialization (CE4) Co-developing (CE5)
2 Relationship quality is quality of the relationship created between customer and companies
Trust (RQ1) Commitment (RQ2) Satisfaction (RQ3)
3
Customer value is the matched value perceived by customers on the services prices of the products quality received by them
Connection with Company (CV1) Goodwill (CV2) Word of Mouth (CV3) Affective Commitment (CV4) Intent to do Business (CV5)
Data Analysis
PLS (Partial Least Square) is used to examine and test the hypothesis proposed PLS has advantages that lsquoit involves no assumptions about the population or scale of measurement (Fornell amp Bookstein 1982) and consequently it works without distributional assumptions and by nominal ordinal and interval scaled variables However one has to bear in mind that the PLS like any statistical technique also requires certain assumptions to be fulfilled Apart from the standard ones (ie the classical Gaussian linear ordinary least squares) regression models (see eg Gujarati 1995) the most important predictor of the assumption is the specification (Chin amp Newsted 1999)
D FINDINGS Based on data analysis of the study it can be explained the analysis of partial least
squares (PLS) as follows Inner PLS model results
The indicators of customer engagement consist of sharing (CE1) learning (CE2) advocating (CE3) socialization (CE4) and co-developing (CE5) The outline of the PLS model for the indicators proposed is shown in Table 2
Table 2 Test Results of Validity and Reliability of Customer Engagement Indicator Variables
No Indicator Test Validity Composite Reliability Loading T-Statistic Criteria
1 CE 1 0919 9438 valid
0876 2 CE 2 0753 5330 valid 3 CE 3 0711 4915 valid 4 CE 4 0851 7639 valid 5 CE 5 0854 6314 valid
Sources Primary data processed in 2014
Table 2 is the result of convergent validity test 5 indicators of customer engagement have loading factor value more than 05 by the T statistical value of all indicators greater than T Table by 196 so that all indicators of customer engagement can be said to be valid The order of the strongest to the weakest indicator is CE1 (sharing) CE5 (co-developing) CE4
1st Piksi International Conference on Knowledge and Sciences 2014 Page | 13
(socialization) CE2 (learning) and CE3 (advocating) Based on the composite reliability test of indicator measuring the construct it shows a satisfactory results in the amount of 0876 meaning that the construct of customer engagement can provide relatively similar results when it is measured again by the same subjects
The indicator of Relationship quality consists of three indicators namely trust (RQ1) commitment (RQ2) and satisfaction (RQ3) The results of the PLS model for the outer indicators is shown in Table 3 below
Table 3
Test Results of Validity and Reliability of Relationship Quality Indicator Variables
No Indicator Test Validity Composite Reliability Loading T-Statistic Criteria
1 RQ1 0822 4959 valid 0731 2 RQ2 0812 5508 valid
3 RQ3 0785 5318 valid
Sources Primary data were processed in 2014
Table 3 is the result of convergent validity test 3 indicators of relationship quality has a loading factor values more than 05 and the value of the T statistic is higher than the T table by 196 so that all indicators of relationship quality can be said to be valid The order of the strongest to the weakest indicator is RQ1 RQ2 and RQ3 Based on the composite reliability test of the indicators measuring construction it showes a satisfactory results in the amount of 0731 meaning that the relationship quality constructs can provide relatively similar results if it is measured again by the same subjects
The indicator of Customer value consists of 5 indicators the connection with the commpany (CV1) goodwill (CV2) word of mouth (CV3) affective commitment (CV4) and intent to do business (CV5) The result of outer model is in Table 4
Table 4 Test Results of Validity and Reliability of Customer value Indicator Variables
No Indicator Test Validity Composite Reliability Loading T-Statistic Criteria
1 CV1 0 815 9 382 valid
0860 2 CV2 0 752 6 211 valid 3 CV3 0 712 4 022 valid 4 CV4 0 886 7 349 valid 5 CV5 0 837 7 649 valid
Table 4 is the result of convergent validity test 5 indicators of customer value has a
loading factor value more than 05 and the value of statistical Tgt T Table by 196 so that all indicators of customer value can be said to be valid The order of the strongest to the weakest indicator is CV4 CV5 CV1 CV2 and CV3 Based on the composite reliability test of indicators measuring the block construct it shows a satisfactory results in the amount of 0860 meaning that the construct of customer value can provide relatively similar results if it is measured again by the same subjects Inner PLS model results
Inner models describes the relationship among latent variables based on substantive theory The results of the bootstrapping output graphs display the relationship among variables such as customer engagement relationship quality and customer value as shown in Figure 2
1st Piksi International Conference on Knowledge and Sciences 2014 Page | 14
Based on calculations in Figure 2 It is known that the direct influence of customer engagement on customer value is equal to 0491 with the indirect influence of 0984 x 0507 = 0499 It means that the indirect influence is higher than the direct Thus the relationship quality variable is the path of the relationship between the customer engagement and customer value Briefly it means that customer engagement can directly improve customer value by trying to increase the relationship quality first
Sources Primary data processed 2014 Figure 1
The relationship Model between the Customer Engagement Relationship quality and Customer value of PT Siba Courier Indonesia
Figure 1 also shows the magnitude of the determination coefficient The coefficient of determination is used to recognize how significant the influence of exogenous variables toward endogenous the higher the value of the coefficient of determination the higher the influence of exogenous variables on endogenous will be R-square value generated from the relationship between customer engagement with the relationship quality is 0969 meaning that the variation of relationship quality which can be explained by customer engagement is 969 while the remaining 31 is obtained from other variables Then R-square value of the relationship model between customer engagement relationship quality and customer value is 0988 it means that the variation of customer value that can be explained by the relationship quality and customer engagement is 988 while the remaining 12 are determined by other variables
Then the hypothesis test is performed by looking at the value of t count if tcount is higher than ttable (alpha 5 = 196) then the alternative hypothesis (H a) is accepted and H 0 is rejected and so that for the opposite Based on the PLS test the results of testing the relationship among variables can be seen in Table 9 and Figure 3
Table 5 Results of Inner Weight
No The relationship among variables Original Sample (O) T Statistics (| O Sterr |) Criteria
1 CE -gt CV 0491 2312 Significant 2 CE -gt RQ 0984 110053 Significant 3 RQ -gt CV 0507 2383 Significant
Sources Primary data processed 2014
1st Piksi International Conference on Knowledge and Sciences 2014 Page | 15
1 The first hypothesis the customer engagement significantly influences the relationship quality Based on the PLS calculations result in Table 8 testing the first hypothesis about the
influence of customer engagement on relationship quality it is obtained the value of the estimated coefficient (β) of 0984 with t statistic value of 110053 This result is much higher than t-table value which is only 196 Then it can be concluded that there is a positive significant influence on the customer engagement variable toward the relationship quality Thus the first hypothesis is accepted
2 The second hypothesis the customer engagement significantly influences the customer value Based on the PLS calculations result in Table 9 testing the second hypothesis about the
influence of customer engagement toward customer value it is obtained the value of the estimated coefficient (β) of 0491 with t statistic value of 2312 This result is higher than t-table value which is only 196 So it can be concluded that there is a positive significant influence of the customer engagement variable toward customer value Thus the second hypothesis is accepted
3 The third hypothesis relationship quality significantly influence customer value Based on the PLS calculations result in Table 9 testing the third hypothesis about the
influence of relationship quality on customer value it is obtained the value of the estimated coefficient (β) of 0507 with t statistic value of 2383 This result is higher than t-table value which is only 196 So it can be concluded that there is a positive significant influence of the relationship quality variable on customer value Thus the third hypothesis is accepted Sobel Test Results
Sobel test is conducted by testing the strength of the indirect influence of independent variables (customer engagement) toward dependent variable (customer value) through intervening variable (relationship quality) This test is done by Online Sobel Test Calculator for the Significance of Mediation by entering the regression coefficient and standard error values of the customer engagement variables to the relationship quality and the regression coefficient and standard error values of the relationship quality variable to customer value in which it gets the result as follows
Figure 4
Sobel Test Results Sobel test shown in Figure 4 shows the Sobel test statistic value of 23797 with a one-
side significance value of 0009 because the significance value is lt005 therefore it can be said that the relationship quality is the intervening variable of the correlation of customer engagement and customer value
E DISCUSSION In this study Customer engagement positively influences relationship quality it means
that the better the customer engagement the better the relationship quality between the customer and the company By involving customers such as Inviting them to share about the things to improve the performance of the company or promote cooperation between companies and customers (share) inviting customers to know more about the company (learning) motivating customers to inform others about the companys products or services (advocating) motivating customers to promote products services of the company (socialization) and motivating customers to contribute ideas that might contribute to the improvement of performance and service of the companies (co-developing) then it will be able to create a good quality relationships between the companies and customers
1st Piksi International Conference on Knowledge and Sciences 2014 Page | 16
This is in line with the findings by Saks (2006) which states that the employee engagement has been implemented as a means to explore and explain the organizational commitment and behaviors of the members and also applied as a predictor of customer ratings toward the companies Furthermore the finding of the study is also in accordance with the opinion of Salanova et al (2005) that engagement has also been recognized as a way to improve morale cohesion and psychological relationship between the customer and the company or organization
The quality of a good relationship is manifested by the growth of customer trust the presence of customer commitment to always use the companys services and customer satisfaction with the overall service provided by the company
Customer engagement in this study positively contribute to customer value the better the company does customer engagement efforts it will contribute to higher customer value Involving customers such as inviting them to share about the things to improve the performance of the company or promote cooperation between companies and customers (share) inviting customers to know more about the company (learning) motivating the customer to inform others about product and service of companies (advocating) motivating customers to promote products services company (socialization) and motivating customers to contribute ideas to improve the performance and service companies (co-developing) will be able to create high customer value
The studys findings are in line with the study conducted by Li and Dant in Vivek (2011) which concludes that the intensity of customer engagement will be positively related to the value received by customers By the time customers are treated very well and considered as part of the company it will raise the principle of reciprocity in which the customer will give the good attitude as good as what they have received by the company (Bagozzidalam Vivek 2011)
Companies Interaction to customers via initiative engagement strategies will make the reciprocity norm appear to customersrsquo engagement If the company successfully engage customers customers will recognize the benefits received and give return values to indicate behavioral intentions In the return of value received customers will have a good faith and affective commitment to the organization and may be willing to develop a strong relationship with the organization
Moreover in this study relationship quality give positive influence on customer value The better relationship quality the better the customer value will be It means that relationship quality is one of the important factors to increase customer value Relationship quality is needed to drive steer cultivate and maintain customer behavior towards the achievement of better corporate performance
Relationship quality in this study also serves as a mediator of the influence of customer engagement toward customer value Customer value will be stronger with the role of relationship quality in it Starting from involving customers by sharing it will create a good relationship between the company and customers Then One of the good form of relationship is the emergence of self-confidence of the customers toward the the company Based on these good relationships created customers will give a positive assessment to the company by the form of manifesting customer awareness of the companys survival (affective commitment) which in this study seems to show the highest loading value of all indicators of customer value
Empirically findings of this study support the finding by John (2008) that concludes that the success in fostering good relationship with customers is actually a beneficial thing that can bring profit for both parties The relationship created between the company and the customer will make communication better
After feeling satisfied and having created a good relationship then the customers will tell the companyrsquos advantage to others The information spread by the customer can build a good image about the company and it can bring in new clients or customers for the companyBy a good relationship not only company but also customers will get profits and advantages Benefits and advantages gained by customers also vary eg special price given by the company and get extra service for being a loyal customer
F CONCLUSION Based on the analysis and discussion in this study it obtains a general conclusion as
follows
1st Piksi International Conference on Knowledge and Sciences 2014 Page | 17
1) Customer engagement have a positive significant influence on relationship quality It means that the better the customer engagement the better the relationship quality will be and the increased sharing programs between companies and customers is a way that can be used to improve customer engagement and gain trust of customers to be better 2) Customer engagement have a positive significant influence on customer value It means that the better the customer engagement the better the customer value will be and the improvement of sharing programs between companies and customers is a way that can be used to improve customer engagement and to establish customer awareness of the companiesrsquo survival company (affective commitment) And 3) Relationship quality have a positive significant influence on customer value it means that the better the relationship quality the better the customer value and establishing trust of the customer is a way to improve the quality of relationships and increase customer awareness of companies survival (affective commitment)
This study has limitations that is the study results can not be generalized beyond the sample of the study because the respondents used is only limited to customers of PT Siba Courier Indonesia representing Semarang and Jakarta city Thus to conduct similar study involving all customers of PT Siba Courier Indonesia spreading in many cities around Indonesia still need to be considered
BIBLIOGRAPHY Brodie JR Ilic A Hollebeek L 2011 Consumer engagement in a virtual brand community An
exploratory analysis Journal of Business Research xxx (2011) xxxndashxxx Cateora Philip R Graham John L 2007 Pemasaran Internasional 13th Edition Jakarta Salemba
Empat Chan S 2003 Relationship Marketing Inovasi Pemasaran yang Membuat Pelanggan Bertekuk
Lutut Jakarta Penerbit PT Gramedia Pustaka Utama Copulsky J R and M J Wolf 1990 Relationship Marketing Positioning for the Future The
Journal of Business Strategy Fandy Tjiptono 2005 Pemasaran Jasa 1st Edition Malang Bayu Media Publishing Fuad Masrsquoud 2004 Survai Diagnosis Organisasional Konsep dan Aplikasi Semarang Diponegoro
University Press Groumlnroos C 1994 ldquoFrom Marketing Mix to Relationship Marketing Towards a Paradigm Shift in
Marketingrdquo Management Decision Vol 32 No 2 pp 4-20 Hollebeek LD 2009 Demystifying Customer Engagement Toward the Development of a
Conceptual Model AMZNAC 2009 1-9 Imam Ghozali 2006 Structural Equation Modeling Metode Alternatif denganPLS (Kedua ed)
Semarang Diponegoro University Press Kotler Philip amp Keller Kevin Lane 2009 Manajemen Pemasaran Edisi 13 Jilid 2 Jakarta PT
Indeks Kotler Philip 2007 Manajemen Pemasaran Analisis Perencanaan Pengendalian Prentice Hall
Edisi Bahasa Indonesia Jakarta Salemba Empat Kumar V Lerzan A Bas D Rajkumar V Thorsten W dan Sebastian T 2010 Undervalued or
Overvalued Customers Capturing Total Customer engagement Value Journal of Service Research 13(3) 297-310
MacInnis dan Mello Jefrey A 2001 StrategicHuman Resources Management International Edition South Western Publishing Ohio
Mowen John C dan Minor M 2002 Perilaku Konsumen Jilid 1 Edisi Kelima (terjemahan) Jakarta Erlangga
Nammir Darman Sulaiman Sadiq Bayar Mohamed Rasheed Marane Aree Mohammed Ali 2012 Determine the Role of Customer engagement on Relationship Quality and Relationship Performance European Journal of Business and Management wwwiisteorgISSN 2222-1905 (Paper) ISSN 2222-2839 (Online) Vol 4 No11 2012
Peter Paul J and Olson Jerry C 2002Perilaku Konsumen dan StrategiPemasaran Edisi ke Empat (Terjemahan) Jakarta Penerbit Erlangga
1st Piksi International Conference on Knowledge and Sciences 2014 Page | 18
Rustono 2010 Faktor-faktor yang Mempengaruhi Implementasi Customer Relationship Mangement (CRM) untuk Meningkatkan Loyalitas PelangganRagamJurnal Pengembangan Humaniora Vol 10 No 3 Desember 2010 153-160
Ryals L and S Knox 2001 ldquoCross-Functional Issue in the Implementation of Relationship Marketing Through Customer relationship Managementrdquo European Management Journal Vol 19 No 5 pp 534-542
Setiadi J Nugroho 2005 Perilaku Konsumen Jakarta Kencana Sugiyono 2008 Metode Penelitian Kuantitatif Kualitatif dan RampD Bandung Alfabeta Tjahyadi RA 2010Membangun Hubungan Jangka Panjang Pelanggan Melalui Relationship
Marketing httpmajourmaranathaeduindexphpjurnal-manajemenarticleview178 Vivek SD 2011 A Scale Of Consumer Engagement Disertasi Department of Management and
Marketing in the Graduate School of The University of Alabama Yahya Y 2008 Pengaruh Customer Relationship Management (CRM) dalam Meningkatkan loyalitas
Pelanggan httpfebudiluhuracidwp-contentuploads201105Pengaruh-Customer-Relationship-Management-Dalam-Meningkatka-Loyalitas-Pelanggan-Yohanes-Yahyapdf
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NO NAME TITLE PACE Noremy Md Akhir
Universili Sains FLOO D DISASTERS IN MALAYSIA
102 Azlinda Alman M Malays ia (U SM)
THE PSYCHOSOCIAL ISSUES AND 102 Fadhil Nordin INTERVENTION -
LONG DISTANCE FAMILY
Bunda Mulia CO MMUNICATON (CASE STUDY
103 Lasmery RM Girsang Universlry
FAMILY COM MUNICATI ON 103 6ETWEEN HEAD OF FAMI LY WITH
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Setyani Hidayati PROGOLINGGO CITY
THE AUTHORITY Of RELIGION 106 Ahmad Dami ri STIES Darul Ulum TR IAL IN THE RESOLUTION OF 106
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Piksi Ganesha MORPHOLOGI CAL ANA LYSIS ON THE
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TECHNOLOGY
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TH E GREATNESS OF SHALAT IN INCREASING THE HUMANmiddot GOD
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1st Piksi International Conference on Knowledge and Sciences 2014 Page | 9
THE ROLE OF DYNAMIC MODEL OF CUSTOMER ENGAGEMENT TOWARD CUSTOMER VALUE
Ardian Adhiatma
M A Irfan Rahmana Dept of Management Faculty of Economics UNISSULA Semarang Indonesia
E-mail ardianunissulaacid irfanrahmanayahoocom
ABSTRACT The added value of the company at this time can not always be built only through customer satisfaction but more to factors such as communication coaching and sharing of the company as stated in the customer engagement The purpose of this study is to know the role of dynamic models of customer engagement toward customer value Explanatory research is conducted on 50 owners managers and authorized personnel in corporate decision The sampling used is purposive sampling Furthermore there are three variables involved in this study those are customer engagement relationship quality and customer value The data of these three variables is obtained from questionnaires Partial least squares analysis with smart PLS 20 is used to determine the correlation within variables Customer engagement shows a positive results and significant influence to customer value either directly or indirectly through the relationship quality in which the influence of indirect coefficient (0499) is higher than the direct coefficient (0491) So it can be concluded that customer engagement has a role in improving customer value through relationship quality
Keywords customer engagement relationship quality customer value
1st Piksi International Conference on Knowledge and Sciences 2014 Page | 10
A INTRODUCTION Nowadays Challenges in the business field have become increasingly tight and
complicated because the presence of dynamical complexities in the market values in which the needs and demands of customers as main stakeholders have changed massively The change of customers condition in demand occur because the presences of information and choices have grown rapidly Not only self-needs experiencing a change but also the ways customers access the needs also change from time to time In the past customer satisfactions were mostly determined by the quality of productsservices pricing and after-sales service Briefly its only three aspects that got too much attention marketers only focused in improving the quality of products pressing price efficiency to be affordable and opening outlets of after sales service Yet in the present day these aspects are considered not meet expectations customers want more of these aspects as a prerequisite for their satisfaction In conclusion it means that the needs of customers expectations has changed so that the programs and approaches to satisfy customers should also be conducted (Rustono 2010)
The phenomena as mentioned above also occur in courier Industries The rapid competition of courier industries in Indonesia is not only caused by globalization but also customers awareness of price and high demands The rapid growth of communication and technology also contribute to the increase of competition intensity since it gives customers access to more information about the wide range of products or services offered These conditions lead customers to have more choices in spending their money
The added value of the company at this time can not always be built only through customer satisfaction but also more to other factors such as communication coaching and sharing of the company as stated in the customer engagement Customer engagement is the peak of the companys relationship with customers to survive and thrive to launch new products to pay more attention into competitor products to sell more products from competitors Besides that the companies also have to implement Customer Relationship Management whereby customer engagement is one of its components At the level of customer engagement relationship built has already been a combination of rational and emotional aspects The quality of this relationship has reached the level of the inner closeness and long-term dimension (Shevlin 2011 in Vivek 2011)
The concept of customer engagement has also been frequently considered as a potential superior strength to predict and to explain the context of the service retention and customer loyalty (Bowden 2009 in Hollebeek 2009) Furthermore Customer engagement is a promising new concept and expected to exceed the contribution given by traditional relational construction including perceived quality customer engagement and satisfaction in explaining and predicting customer value (Hollebeek 2009) Customer value is defined as the emotional bond that exists between customers and manufacturers because the customers use the products and services of the company and then find that the product or service give them additional value (Tjiptono 2005)
The study by Hollebeek (2009) concludes that the customers engagement improve loyalty satisfaction empowerment connection emotional bonding trust and commitment Furthermore Kumar et al (2010) emphasizes that customers can be involved in creating value for the company in various ways first the customer lifetime value (customer buying behavior) second the customer referrals value (related to referral incentives of new customers) third customer influence value (related to customers behavior to influence other customers which increases the acquisition retention and share of wallet through communication among customers and existing prospects) and fourth is the customer knowledge value (surplus for the company with feedback from customers) Customer engagemet value (CEV) provides a comprehensive framework that can ultimately lead to more efficient marketing strategies that enable a higher long-term contribution to customers The study by Vivek (2011) proves that customers engagement in turn can positively influence the companys relationship with customers and raises good faith and intention to do business with the company
The capability of Customer engagement in predicting customer value has been adopted as a marketing strategy by PT Siba Courier Indonesia This strategy is implemented because until this time if it is compared with its competitors PT Siba Courier Indonesia is far behind from their competitors in terms of the availability of fleet infrastructure and age In the future PT Siba Courier Indonesia is predicted to be abandoned by its customers if only rely on the availability of
1st Piksi International Conference on Knowledge and Sciences 2014 Page | 11
limited facilities and infrastructure The fact that the customers of PT Siba Courier Indonesia both in Jakarta and Semarang are still loyal to use the services of this company and even if they keep patient waiting queue to obtain service because the company have overload in order delivery If in general to improve the competitiveness and to maintain the survival of the company efforts are made through internal factors (improvement of service quality provision of infrastructure and facilities services technological advances etc) in this study exactly at PT Siba Courier Indonesia the related cases are not found Therefore it is interesting to do a more focused study on the role of dynamic models of customer engagement toward customer value in the PT Siba Courier Indonesia
B LITERATURE REVIEW
Customer Engagement Customer engagement (CE) is the intensity of customer participation by representatives
of the organization and through other customers in the process of collaborative knowledge exchange (Wagner and Majchrzak 200720) in Vivek (2011) Engagement refers to customersrsquo perception toward the importance or personal relevance of objects events and activities In this case Customers will acquire that a certain product has a personal relevance and relationship with them Relationship quality
The relationship quality or connections is represented through real-image of relationship and individual experience of each party in the relationship A subjective connection is obtained through positive passion energy matter and togetherness (Quinn and Dutton 2005 Heaphy amp Dutton 2008 in Vivek 2011) in which Two people involved in the connection and active participation (Heaphy and Dutton Vivek 2008267 in 2011)
In this study connection is defined as a positive emotional relationship that customers have a sense of belonging to the companies The quality of relationship construction is based on the amount of time spent in the workplace employees are significantly influenced by their relationships formed in the workplace so the connection significantly influences the function of the organization Customer value
The concept of customer value (CV) by Kotler and Keller (2009 14) is the combination of quality service price of products or services Furthermore Customer value is the dispute between the amount of value for customers and the total cost of customers and the amount of value for customers are customers expected profit of certain goods or services
According to Best in (Sumarwan et al 2010 30) the customer value is a benefit or profit obtained by customers lessened by the cost of the purchase Based on this concept customer value is derived from the economic customer and emotional benefits Economic Benefit is obtained from surplus of price and cost but not the cost of purchase which includes acquisition ownership usage maintenance repairment and disposal costs Customers Benefit is derived from the product appearance service and reputation Emotional Benefit is the overplus of the product to meet the emotional needs of the customer associated with psychological needs types of customers personality and customer personal value
C RESEARCH METHOD
The population of this study is all customers of PT Siba Courier Indonesia totaling 40 companies spread over two cities Semarang and Jakarta Because of limited number of population the total population is all designated as sample or census research Moreover it is also with the consideration that using total population as a sample will get a more representative description and minimize the error rates so that the data obtained will be close the real value The sample proposed is the companies which at least for three years have actively used services of PT Siba Courier Indonesia Then from each company it is selected two people from the owner and the manager or the other person who has the authority to make decision (the decision maker)
The data collection method is purposive sampling and the analysis techniques is performed by Partial Least Square and Sobel Test
Table 1
1st Piksi International Conference on Knowledge and Sciences 2014 Page | 12
Research Variables and Indicators No Variables Indicators Shape
1 Customer engagement is the level of customers attention to the company
Sharing (CE1)
Likert Scale 1-5
Learning (CE2) Advocating (CE3) Socialization (CE4) Co-developing (CE5)
2 Relationship quality is quality of the relationship created between customer and companies
Trust (RQ1) Commitment (RQ2) Satisfaction (RQ3)
3
Customer value is the matched value perceived by customers on the services prices of the products quality received by them
Connection with Company (CV1) Goodwill (CV2) Word of Mouth (CV3) Affective Commitment (CV4) Intent to do Business (CV5)
Data Analysis
PLS (Partial Least Square) is used to examine and test the hypothesis proposed PLS has advantages that lsquoit involves no assumptions about the population or scale of measurement (Fornell amp Bookstein 1982) and consequently it works without distributional assumptions and by nominal ordinal and interval scaled variables However one has to bear in mind that the PLS like any statistical technique also requires certain assumptions to be fulfilled Apart from the standard ones (ie the classical Gaussian linear ordinary least squares) regression models (see eg Gujarati 1995) the most important predictor of the assumption is the specification (Chin amp Newsted 1999)
D FINDINGS Based on data analysis of the study it can be explained the analysis of partial least
squares (PLS) as follows Inner PLS model results
The indicators of customer engagement consist of sharing (CE1) learning (CE2) advocating (CE3) socialization (CE4) and co-developing (CE5) The outline of the PLS model for the indicators proposed is shown in Table 2
Table 2 Test Results of Validity and Reliability of Customer Engagement Indicator Variables
No Indicator Test Validity Composite Reliability Loading T-Statistic Criteria
1 CE 1 0919 9438 valid
0876 2 CE 2 0753 5330 valid 3 CE 3 0711 4915 valid 4 CE 4 0851 7639 valid 5 CE 5 0854 6314 valid
Sources Primary data processed in 2014
Table 2 is the result of convergent validity test 5 indicators of customer engagement have loading factor value more than 05 by the T statistical value of all indicators greater than T Table by 196 so that all indicators of customer engagement can be said to be valid The order of the strongest to the weakest indicator is CE1 (sharing) CE5 (co-developing) CE4
1st Piksi International Conference on Knowledge and Sciences 2014 Page | 13
(socialization) CE2 (learning) and CE3 (advocating) Based on the composite reliability test of indicator measuring the construct it shows a satisfactory results in the amount of 0876 meaning that the construct of customer engagement can provide relatively similar results when it is measured again by the same subjects
The indicator of Relationship quality consists of three indicators namely trust (RQ1) commitment (RQ2) and satisfaction (RQ3) The results of the PLS model for the outer indicators is shown in Table 3 below
Table 3
Test Results of Validity and Reliability of Relationship Quality Indicator Variables
No Indicator Test Validity Composite Reliability Loading T-Statistic Criteria
1 RQ1 0822 4959 valid 0731 2 RQ2 0812 5508 valid
3 RQ3 0785 5318 valid
Sources Primary data were processed in 2014
Table 3 is the result of convergent validity test 3 indicators of relationship quality has a loading factor values more than 05 and the value of the T statistic is higher than the T table by 196 so that all indicators of relationship quality can be said to be valid The order of the strongest to the weakest indicator is RQ1 RQ2 and RQ3 Based on the composite reliability test of the indicators measuring construction it showes a satisfactory results in the amount of 0731 meaning that the relationship quality constructs can provide relatively similar results if it is measured again by the same subjects
The indicator of Customer value consists of 5 indicators the connection with the commpany (CV1) goodwill (CV2) word of mouth (CV3) affective commitment (CV4) and intent to do business (CV5) The result of outer model is in Table 4
Table 4 Test Results of Validity and Reliability of Customer value Indicator Variables
No Indicator Test Validity Composite Reliability Loading T-Statistic Criteria
1 CV1 0 815 9 382 valid
0860 2 CV2 0 752 6 211 valid 3 CV3 0 712 4 022 valid 4 CV4 0 886 7 349 valid 5 CV5 0 837 7 649 valid
Table 4 is the result of convergent validity test 5 indicators of customer value has a
loading factor value more than 05 and the value of statistical Tgt T Table by 196 so that all indicators of customer value can be said to be valid The order of the strongest to the weakest indicator is CV4 CV5 CV1 CV2 and CV3 Based on the composite reliability test of indicators measuring the block construct it shows a satisfactory results in the amount of 0860 meaning that the construct of customer value can provide relatively similar results if it is measured again by the same subjects Inner PLS model results
Inner models describes the relationship among latent variables based on substantive theory The results of the bootstrapping output graphs display the relationship among variables such as customer engagement relationship quality and customer value as shown in Figure 2
1st Piksi International Conference on Knowledge and Sciences 2014 Page | 14
Based on calculations in Figure 2 It is known that the direct influence of customer engagement on customer value is equal to 0491 with the indirect influence of 0984 x 0507 = 0499 It means that the indirect influence is higher than the direct Thus the relationship quality variable is the path of the relationship between the customer engagement and customer value Briefly it means that customer engagement can directly improve customer value by trying to increase the relationship quality first
Sources Primary data processed 2014 Figure 1
The relationship Model between the Customer Engagement Relationship quality and Customer value of PT Siba Courier Indonesia
Figure 1 also shows the magnitude of the determination coefficient The coefficient of determination is used to recognize how significant the influence of exogenous variables toward endogenous the higher the value of the coefficient of determination the higher the influence of exogenous variables on endogenous will be R-square value generated from the relationship between customer engagement with the relationship quality is 0969 meaning that the variation of relationship quality which can be explained by customer engagement is 969 while the remaining 31 is obtained from other variables Then R-square value of the relationship model between customer engagement relationship quality and customer value is 0988 it means that the variation of customer value that can be explained by the relationship quality and customer engagement is 988 while the remaining 12 are determined by other variables
Then the hypothesis test is performed by looking at the value of t count if tcount is higher than ttable (alpha 5 = 196) then the alternative hypothesis (H a) is accepted and H 0 is rejected and so that for the opposite Based on the PLS test the results of testing the relationship among variables can be seen in Table 9 and Figure 3
Table 5 Results of Inner Weight
No The relationship among variables Original Sample (O) T Statistics (| O Sterr |) Criteria
1 CE -gt CV 0491 2312 Significant 2 CE -gt RQ 0984 110053 Significant 3 RQ -gt CV 0507 2383 Significant
Sources Primary data processed 2014
1st Piksi International Conference on Knowledge and Sciences 2014 Page | 15
1 The first hypothesis the customer engagement significantly influences the relationship quality Based on the PLS calculations result in Table 8 testing the first hypothesis about the
influence of customer engagement on relationship quality it is obtained the value of the estimated coefficient (β) of 0984 with t statistic value of 110053 This result is much higher than t-table value which is only 196 Then it can be concluded that there is a positive significant influence on the customer engagement variable toward the relationship quality Thus the first hypothesis is accepted
2 The second hypothesis the customer engagement significantly influences the customer value Based on the PLS calculations result in Table 9 testing the second hypothesis about the
influence of customer engagement toward customer value it is obtained the value of the estimated coefficient (β) of 0491 with t statistic value of 2312 This result is higher than t-table value which is only 196 So it can be concluded that there is a positive significant influence of the customer engagement variable toward customer value Thus the second hypothesis is accepted
3 The third hypothesis relationship quality significantly influence customer value Based on the PLS calculations result in Table 9 testing the third hypothesis about the
influence of relationship quality on customer value it is obtained the value of the estimated coefficient (β) of 0507 with t statistic value of 2383 This result is higher than t-table value which is only 196 So it can be concluded that there is a positive significant influence of the relationship quality variable on customer value Thus the third hypothesis is accepted Sobel Test Results
Sobel test is conducted by testing the strength of the indirect influence of independent variables (customer engagement) toward dependent variable (customer value) through intervening variable (relationship quality) This test is done by Online Sobel Test Calculator for the Significance of Mediation by entering the regression coefficient and standard error values of the customer engagement variables to the relationship quality and the regression coefficient and standard error values of the relationship quality variable to customer value in which it gets the result as follows
Figure 4
Sobel Test Results Sobel test shown in Figure 4 shows the Sobel test statistic value of 23797 with a one-
side significance value of 0009 because the significance value is lt005 therefore it can be said that the relationship quality is the intervening variable of the correlation of customer engagement and customer value
E DISCUSSION In this study Customer engagement positively influences relationship quality it means
that the better the customer engagement the better the relationship quality between the customer and the company By involving customers such as Inviting them to share about the things to improve the performance of the company or promote cooperation between companies and customers (share) inviting customers to know more about the company (learning) motivating customers to inform others about the companys products or services (advocating) motivating customers to promote products services of the company (socialization) and motivating customers to contribute ideas that might contribute to the improvement of performance and service of the companies (co-developing) then it will be able to create a good quality relationships between the companies and customers
1st Piksi International Conference on Knowledge and Sciences 2014 Page | 16
This is in line with the findings by Saks (2006) which states that the employee engagement has been implemented as a means to explore and explain the organizational commitment and behaviors of the members and also applied as a predictor of customer ratings toward the companies Furthermore the finding of the study is also in accordance with the opinion of Salanova et al (2005) that engagement has also been recognized as a way to improve morale cohesion and psychological relationship between the customer and the company or organization
The quality of a good relationship is manifested by the growth of customer trust the presence of customer commitment to always use the companys services and customer satisfaction with the overall service provided by the company
Customer engagement in this study positively contribute to customer value the better the company does customer engagement efforts it will contribute to higher customer value Involving customers such as inviting them to share about the things to improve the performance of the company or promote cooperation between companies and customers (share) inviting customers to know more about the company (learning) motivating the customer to inform others about product and service of companies (advocating) motivating customers to promote products services company (socialization) and motivating customers to contribute ideas to improve the performance and service companies (co-developing) will be able to create high customer value
The studys findings are in line with the study conducted by Li and Dant in Vivek (2011) which concludes that the intensity of customer engagement will be positively related to the value received by customers By the time customers are treated very well and considered as part of the company it will raise the principle of reciprocity in which the customer will give the good attitude as good as what they have received by the company (Bagozzidalam Vivek 2011)
Companies Interaction to customers via initiative engagement strategies will make the reciprocity norm appear to customersrsquo engagement If the company successfully engage customers customers will recognize the benefits received and give return values to indicate behavioral intentions In the return of value received customers will have a good faith and affective commitment to the organization and may be willing to develop a strong relationship with the organization
Moreover in this study relationship quality give positive influence on customer value The better relationship quality the better the customer value will be It means that relationship quality is one of the important factors to increase customer value Relationship quality is needed to drive steer cultivate and maintain customer behavior towards the achievement of better corporate performance
Relationship quality in this study also serves as a mediator of the influence of customer engagement toward customer value Customer value will be stronger with the role of relationship quality in it Starting from involving customers by sharing it will create a good relationship between the company and customers Then One of the good form of relationship is the emergence of self-confidence of the customers toward the the company Based on these good relationships created customers will give a positive assessment to the company by the form of manifesting customer awareness of the companys survival (affective commitment) which in this study seems to show the highest loading value of all indicators of customer value
Empirically findings of this study support the finding by John (2008) that concludes that the success in fostering good relationship with customers is actually a beneficial thing that can bring profit for both parties The relationship created between the company and the customer will make communication better
After feeling satisfied and having created a good relationship then the customers will tell the companyrsquos advantage to others The information spread by the customer can build a good image about the company and it can bring in new clients or customers for the companyBy a good relationship not only company but also customers will get profits and advantages Benefits and advantages gained by customers also vary eg special price given by the company and get extra service for being a loyal customer
F CONCLUSION Based on the analysis and discussion in this study it obtains a general conclusion as
follows
1st Piksi International Conference on Knowledge and Sciences 2014 Page | 17
1) Customer engagement have a positive significant influence on relationship quality It means that the better the customer engagement the better the relationship quality will be and the increased sharing programs between companies and customers is a way that can be used to improve customer engagement and gain trust of customers to be better 2) Customer engagement have a positive significant influence on customer value It means that the better the customer engagement the better the customer value will be and the improvement of sharing programs between companies and customers is a way that can be used to improve customer engagement and to establish customer awareness of the companiesrsquo survival company (affective commitment) And 3) Relationship quality have a positive significant influence on customer value it means that the better the relationship quality the better the customer value and establishing trust of the customer is a way to improve the quality of relationships and increase customer awareness of companies survival (affective commitment)
This study has limitations that is the study results can not be generalized beyond the sample of the study because the respondents used is only limited to customers of PT Siba Courier Indonesia representing Semarang and Jakarta city Thus to conduct similar study involving all customers of PT Siba Courier Indonesia spreading in many cities around Indonesia still need to be considered
BIBLIOGRAPHY Brodie JR Ilic A Hollebeek L 2011 Consumer engagement in a virtual brand community An
exploratory analysis Journal of Business Research xxx (2011) xxxndashxxx Cateora Philip R Graham John L 2007 Pemasaran Internasional 13th Edition Jakarta Salemba
Empat Chan S 2003 Relationship Marketing Inovasi Pemasaran yang Membuat Pelanggan Bertekuk
Lutut Jakarta Penerbit PT Gramedia Pustaka Utama Copulsky J R and M J Wolf 1990 Relationship Marketing Positioning for the Future The
Journal of Business Strategy Fandy Tjiptono 2005 Pemasaran Jasa 1st Edition Malang Bayu Media Publishing Fuad Masrsquoud 2004 Survai Diagnosis Organisasional Konsep dan Aplikasi Semarang Diponegoro
University Press Groumlnroos C 1994 ldquoFrom Marketing Mix to Relationship Marketing Towards a Paradigm Shift in
Marketingrdquo Management Decision Vol 32 No 2 pp 4-20 Hollebeek LD 2009 Demystifying Customer Engagement Toward the Development of a
Conceptual Model AMZNAC 2009 1-9 Imam Ghozali 2006 Structural Equation Modeling Metode Alternatif denganPLS (Kedua ed)
Semarang Diponegoro University Press Kotler Philip amp Keller Kevin Lane 2009 Manajemen Pemasaran Edisi 13 Jilid 2 Jakarta PT
Indeks Kotler Philip 2007 Manajemen Pemasaran Analisis Perencanaan Pengendalian Prentice Hall
Edisi Bahasa Indonesia Jakarta Salemba Empat Kumar V Lerzan A Bas D Rajkumar V Thorsten W dan Sebastian T 2010 Undervalued or
Overvalued Customers Capturing Total Customer engagement Value Journal of Service Research 13(3) 297-310
MacInnis dan Mello Jefrey A 2001 StrategicHuman Resources Management International Edition South Western Publishing Ohio
Mowen John C dan Minor M 2002 Perilaku Konsumen Jilid 1 Edisi Kelima (terjemahan) Jakarta Erlangga
Nammir Darman Sulaiman Sadiq Bayar Mohamed Rasheed Marane Aree Mohammed Ali 2012 Determine the Role of Customer engagement on Relationship Quality and Relationship Performance European Journal of Business and Management wwwiisteorgISSN 2222-1905 (Paper) ISSN 2222-2839 (Online) Vol 4 No11 2012
Peter Paul J and Olson Jerry C 2002Perilaku Konsumen dan StrategiPemasaran Edisi ke Empat (Terjemahan) Jakarta Penerbit Erlangga
1st Piksi International Conference on Knowledge and Sciences 2014 Page | 18
Rustono 2010 Faktor-faktor yang Mempengaruhi Implementasi Customer Relationship Mangement (CRM) untuk Meningkatkan Loyalitas PelangganRagamJurnal Pengembangan Humaniora Vol 10 No 3 Desember 2010 153-160
Ryals L and S Knox 2001 ldquoCross-Functional Issue in the Implementation of Relationship Marketing Through Customer relationship Managementrdquo European Management Journal Vol 19 No 5 pp 534-542
Setiadi J Nugroho 2005 Perilaku Konsumen Jakarta Kencana Sugiyono 2008 Metode Penelitian Kuantitatif Kualitatif dan RampD Bandung Alfabeta Tjahyadi RA 2010Membangun Hubungan Jangka Panjang Pelanggan Melalui Relationship
Marketing httpmajourmaranathaeduindexphpjurnal-manajemenarticleview178 Vivek SD 2011 A Scale Of Consumer Engagement Disertasi Department of Management and
Marketing in the Graduate School of The University of Alabama Yahya Y 2008 Pengaruh Customer Relationship Management (CRM) dalam Meningkatkan loyalitas
Pelanggan httpfebudiluhuracidwp-contentuploads201105Pengaruh-Customer-Relationship-Management-Dalam-Meningkatka-Loyalitas-Pelanggan-Yohanes-Yahyapdf
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IMPLICATIONSON FOREIGN
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1st Piksi International Conference on Knowledge and Sciences 2014 Page | 9
THE ROLE OF DYNAMIC MODEL OF CUSTOMER ENGAGEMENT TOWARD CUSTOMER VALUE
Ardian Adhiatma
M A Irfan Rahmana Dept of Management Faculty of Economics UNISSULA Semarang Indonesia
E-mail ardianunissulaacid irfanrahmanayahoocom
ABSTRACT The added value of the company at this time can not always be built only through customer satisfaction but more to factors such as communication coaching and sharing of the company as stated in the customer engagement The purpose of this study is to know the role of dynamic models of customer engagement toward customer value Explanatory research is conducted on 50 owners managers and authorized personnel in corporate decision The sampling used is purposive sampling Furthermore there are three variables involved in this study those are customer engagement relationship quality and customer value The data of these three variables is obtained from questionnaires Partial least squares analysis with smart PLS 20 is used to determine the correlation within variables Customer engagement shows a positive results and significant influence to customer value either directly or indirectly through the relationship quality in which the influence of indirect coefficient (0499) is higher than the direct coefficient (0491) So it can be concluded that customer engagement has a role in improving customer value through relationship quality
Keywords customer engagement relationship quality customer value
1st Piksi International Conference on Knowledge and Sciences 2014 Page | 10
A INTRODUCTION Nowadays Challenges in the business field have become increasingly tight and
complicated because the presence of dynamical complexities in the market values in which the needs and demands of customers as main stakeholders have changed massively The change of customers condition in demand occur because the presences of information and choices have grown rapidly Not only self-needs experiencing a change but also the ways customers access the needs also change from time to time In the past customer satisfactions were mostly determined by the quality of productsservices pricing and after-sales service Briefly its only three aspects that got too much attention marketers only focused in improving the quality of products pressing price efficiency to be affordable and opening outlets of after sales service Yet in the present day these aspects are considered not meet expectations customers want more of these aspects as a prerequisite for their satisfaction In conclusion it means that the needs of customers expectations has changed so that the programs and approaches to satisfy customers should also be conducted (Rustono 2010)
The phenomena as mentioned above also occur in courier Industries The rapid competition of courier industries in Indonesia is not only caused by globalization but also customers awareness of price and high demands The rapid growth of communication and technology also contribute to the increase of competition intensity since it gives customers access to more information about the wide range of products or services offered These conditions lead customers to have more choices in spending their money
The added value of the company at this time can not always be built only through customer satisfaction but also more to other factors such as communication coaching and sharing of the company as stated in the customer engagement Customer engagement is the peak of the companys relationship with customers to survive and thrive to launch new products to pay more attention into competitor products to sell more products from competitors Besides that the companies also have to implement Customer Relationship Management whereby customer engagement is one of its components At the level of customer engagement relationship built has already been a combination of rational and emotional aspects The quality of this relationship has reached the level of the inner closeness and long-term dimension (Shevlin 2011 in Vivek 2011)
The concept of customer engagement has also been frequently considered as a potential superior strength to predict and to explain the context of the service retention and customer loyalty (Bowden 2009 in Hollebeek 2009) Furthermore Customer engagement is a promising new concept and expected to exceed the contribution given by traditional relational construction including perceived quality customer engagement and satisfaction in explaining and predicting customer value (Hollebeek 2009) Customer value is defined as the emotional bond that exists between customers and manufacturers because the customers use the products and services of the company and then find that the product or service give them additional value (Tjiptono 2005)
The study by Hollebeek (2009) concludes that the customers engagement improve loyalty satisfaction empowerment connection emotional bonding trust and commitment Furthermore Kumar et al (2010) emphasizes that customers can be involved in creating value for the company in various ways first the customer lifetime value (customer buying behavior) second the customer referrals value (related to referral incentives of new customers) third customer influence value (related to customers behavior to influence other customers which increases the acquisition retention and share of wallet through communication among customers and existing prospects) and fourth is the customer knowledge value (surplus for the company with feedback from customers) Customer engagemet value (CEV) provides a comprehensive framework that can ultimately lead to more efficient marketing strategies that enable a higher long-term contribution to customers The study by Vivek (2011) proves that customers engagement in turn can positively influence the companys relationship with customers and raises good faith and intention to do business with the company
The capability of Customer engagement in predicting customer value has been adopted as a marketing strategy by PT Siba Courier Indonesia This strategy is implemented because until this time if it is compared with its competitors PT Siba Courier Indonesia is far behind from their competitors in terms of the availability of fleet infrastructure and age In the future PT Siba Courier Indonesia is predicted to be abandoned by its customers if only rely on the availability of
1st Piksi International Conference on Knowledge and Sciences 2014 Page | 11
limited facilities and infrastructure The fact that the customers of PT Siba Courier Indonesia both in Jakarta and Semarang are still loyal to use the services of this company and even if they keep patient waiting queue to obtain service because the company have overload in order delivery If in general to improve the competitiveness and to maintain the survival of the company efforts are made through internal factors (improvement of service quality provision of infrastructure and facilities services technological advances etc) in this study exactly at PT Siba Courier Indonesia the related cases are not found Therefore it is interesting to do a more focused study on the role of dynamic models of customer engagement toward customer value in the PT Siba Courier Indonesia
B LITERATURE REVIEW
Customer Engagement Customer engagement (CE) is the intensity of customer participation by representatives
of the organization and through other customers in the process of collaborative knowledge exchange (Wagner and Majchrzak 200720) in Vivek (2011) Engagement refers to customersrsquo perception toward the importance or personal relevance of objects events and activities In this case Customers will acquire that a certain product has a personal relevance and relationship with them Relationship quality
The relationship quality or connections is represented through real-image of relationship and individual experience of each party in the relationship A subjective connection is obtained through positive passion energy matter and togetherness (Quinn and Dutton 2005 Heaphy amp Dutton 2008 in Vivek 2011) in which Two people involved in the connection and active participation (Heaphy and Dutton Vivek 2008267 in 2011)
In this study connection is defined as a positive emotional relationship that customers have a sense of belonging to the companies The quality of relationship construction is based on the amount of time spent in the workplace employees are significantly influenced by their relationships formed in the workplace so the connection significantly influences the function of the organization Customer value
The concept of customer value (CV) by Kotler and Keller (2009 14) is the combination of quality service price of products or services Furthermore Customer value is the dispute between the amount of value for customers and the total cost of customers and the amount of value for customers are customers expected profit of certain goods or services
According to Best in (Sumarwan et al 2010 30) the customer value is a benefit or profit obtained by customers lessened by the cost of the purchase Based on this concept customer value is derived from the economic customer and emotional benefits Economic Benefit is obtained from surplus of price and cost but not the cost of purchase which includes acquisition ownership usage maintenance repairment and disposal costs Customers Benefit is derived from the product appearance service and reputation Emotional Benefit is the overplus of the product to meet the emotional needs of the customer associated with psychological needs types of customers personality and customer personal value
C RESEARCH METHOD
The population of this study is all customers of PT Siba Courier Indonesia totaling 40 companies spread over two cities Semarang and Jakarta Because of limited number of population the total population is all designated as sample or census research Moreover it is also with the consideration that using total population as a sample will get a more representative description and minimize the error rates so that the data obtained will be close the real value The sample proposed is the companies which at least for three years have actively used services of PT Siba Courier Indonesia Then from each company it is selected two people from the owner and the manager or the other person who has the authority to make decision (the decision maker)
The data collection method is purposive sampling and the analysis techniques is performed by Partial Least Square and Sobel Test
Table 1
1st Piksi International Conference on Knowledge and Sciences 2014 Page | 12
Research Variables and Indicators No Variables Indicators Shape
1 Customer engagement is the level of customers attention to the company
Sharing (CE1)
Likert Scale 1-5
Learning (CE2) Advocating (CE3) Socialization (CE4) Co-developing (CE5)
2 Relationship quality is quality of the relationship created between customer and companies
Trust (RQ1) Commitment (RQ2) Satisfaction (RQ3)
3
Customer value is the matched value perceived by customers on the services prices of the products quality received by them
Connection with Company (CV1) Goodwill (CV2) Word of Mouth (CV3) Affective Commitment (CV4) Intent to do Business (CV5)
Data Analysis
PLS (Partial Least Square) is used to examine and test the hypothesis proposed PLS has advantages that lsquoit involves no assumptions about the population or scale of measurement (Fornell amp Bookstein 1982) and consequently it works without distributional assumptions and by nominal ordinal and interval scaled variables However one has to bear in mind that the PLS like any statistical technique also requires certain assumptions to be fulfilled Apart from the standard ones (ie the classical Gaussian linear ordinary least squares) regression models (see eg Gujarati 1995) the most important predictor of the assumption is the specification (Chin amp Newsted 1999)
D FINDINGS Based on data analysis of the study it can be explained the analysis of partial least
squares (PLS) as follows Inner PLS model results
The indicators of customer engagement consist of sharing (CE1) learning (CE2) advocating (CE3) socialization (CE4) and co-developing (CE5) The outline of the PLS model for the indicators proposed is shown in Table 2
Table 2 Test Results of Validity and Reliability of Customer Engagement Indicator Variables
No Indicator Test Validity Composite Reliability Loading T-Statistic Criteria
1 CE 1 0919 9438 valid
0876 2 CE 2 0753 5330 valid 3 CE 3 0711 4915 valid 4 CE 4 0851 7639 valid 5 CE 5 0854 6314 valid
Sources Primary data processed in 2014
Table 2 is the result of convergent validity test 5 indicators of customer engagement have loading factor value more than 05 by the T statistical value of all indicators greater than T Table by 196 so that all indicators of customer engagement can be said to be valid The order of the strongest to the weakest indicator is CE1 (sharing) CE5 (co-developing) CE4
1st Piksi International Conference on Knowledge and Sciences 2014 Page | 13
(socialization) CE2 (learning) and CE3 (advocating) Based on the composite reliability test of indicator measuring the construct it shows a satisfactory results in the amount of 0876 meaning that the construct of customer engagement can provide relatively similar results when it is measured again by the same subjects
The indicator of Relationship quality consists of three indicators namely trust (RQ1) commitment (RQ2) and satisfaction (RQ3) The results of the PLS model for the outer indicators is shown in Table 3 below
Table 3
Test Results of Validity and Reliability of Relationship Quality Indicator Variables
No Indicator Test Validity Composite Reliability Loading T-Statistic Criteria
1 RQ1 0822 4959 valid 0731 2 RQ2 0812 5508 valid
3 RQ3 0785 5318 valid
Sources Primary data were processed in 2014
Table 3 is the result of convergent validity test 3 indicators of relationship quality has a loading factor values more than 05 and the value of the T statistic is higher than the T table by 196 so that all indicators of relationship quality can be said to be valid The order of the strongest to the weakest indicator is RQ1 RQ2 and RQ3 Based on the composite reliability test of the indicators measuring construction it showes a satisfactory results in the amount of 0731 meaning that the relationship quality constructs can provide relatively similar results if it is measured again by the same subjects
The indicator of Customer value consists of 5 indicators the connection with the commpany (CV1) goodwill (CV2) word of mouth (CV3) affective commitment (CV4) and intent to do business (CV5) The result of outer model is in Table 4
Table 4 Test Results of Validity and Reliability of Customer value Indicator Variables
No Indicator Test Validity Composite Reliability Loading T-Statistic Criteria
1 CV1 0 815 9 382 valid
0860 2 CV2 0 752 6 211 valid 3 CV3 0 712 4 022 valid 4 CV4 0 886 7 349 valid 5 CV5 0 837 7 649 valid
Table 4 is the result of convergent validity test 5 indicators of customer value has a
loading factor value more than 05 and the value of statistical Tgt T Table by 196 so that all indicators of customer value can be said to be valid The order of the strongest to the weakest indicator is CV4 CV5 CV1 CV2 and CV3 Based on the composite reliability test of indicators measuring the block construct it shows a satisfactory results in the amount of 0860 meaning that the construct of customer value can provide relatively similar results if it is measured again by the same subjects Inner PLS model results
Inner models describes the relationship among latent variables based on substantive theory The results of the bootstrapping output graphs display the relationship among variables such as customer engagement relationship quality and customer value as shown in Figure 2
1st Piksi International Conference on Knowledge and Sciences 2014 Page | 14
Based on calculations in Figure 2 It is known that the direct influence of customer engagement on customer value is equal to 0491 with the indirect influence of 0984 x 0507 = 0499 It means that the indirect influence is higher than the direct Thus the relationship quality variable is the path of the relationship between the customer engagement and customer value Briefly it means that customer engagement can directly improve customer value by trying to increase the relationship quality first
Sources Primary data processed 2014 Figure 1
The relationship Model between the Customer Engagement Relationship quality and Customer value of PT Siba Courier Indonesia
Figure 1 also shows the magnitude of the determination coefficient The coefficient of determination is used to recognize how significant the influence of exogenous variables toward endogenous the higher the value of the coefficient of determination the higher the influence of exogenous variables on endogenous will be R-square value generated from the relationship between customer engagement with the relationship quality is 0969 meaning that the variation of relationship quality which can be explained by customer engagement is 969 while the remaining 31 is obtained from other variables Then R-square value of the relationship model between customer engagement relationship quality and customer value is 0988 it means that the variation of customer value that can be explained by the relationship quality and customer engagement is 988 while the remaining 12 are determined by other variables
Then the hypothesis test is performed by looking at the value of t count if tcount is higher than ttable (alpha 5 = 196) then the alternative hypothesis (H a) is accepted and H 0 is rejected and so that for the opposite Based on the PLS test the results of testing the relationship among variables can be seen in Table 9 and Figure 3
Table 5 Results of Inner Weight
No The relationship among variables Original Sample (O) T Statistics (| O Sterr |) Criteria
1 CE -gt CV 0491 2312 Significant 2 CE -gt RQ 0984 110053 Significant 3 RQ -gt CV 0507 2383 Significant
Sources Primary data processed 2014
1st Piksi International Conference on Knowledge and Sciences 2014 Page | 15
1 The first hypothesis the customer engagement significantly influences the relationship quality Based on the PLS calculations result in Table 8 testing the first hypothesis about the
influence of customer engagement on relationship quality it is obtained the value of the estimated coefficient (β) of 0984 with t statistic value of 110053 This result is much higher than t-table value which is only 196 Then it can be concluded that there is a positive significant influence on the customer engagement variable toward the relationship quality Thus the first hypothesis is accepted
2 The second hypothesis the customer engagement significantly influences the customer value Based on the PLS calculations result in Table 9 testing the second hypothesis about the
influence of customer engagement toward customer value it is obtained the value of the estimated coefficient (β) of 0491 with t statistic value of 2312 This result is higher than t-table value which is only 196 So it can be concluded that there is a positive significant influence of the customer engagement variable toward customer value Thus the second hypothesis is accepted
3 The third hypothesis relationship quality significantly influence customer value Based on the PLS calculations result in Table 9 testing the third hypothesis about the
influence of relationship quality on customer value it is obtained the value of the estimated coefficient (β) of 0507 with t statistic value of 2383 This result is higher than t-table value which is only 196 So it can be concluded that there is a positive significant influence of the relationship quality variable on customer value Thus the third hypothesis is accepted Sobel Test Results
Sobel test is conducted by testing the strength of the indirect influence of independent variables (customer engagement) toward dependent variable (customer value) through intervening variable (relationship quality) This test is done by Online Sobel Test Calculator for the Significance of Mediation by entering the regression coefficient and standard error values of the customer engagement variables to the relationship quality and the regression coefficient and standard error values of the relationship quality variable to customer value in which it gets the result as follows
Figure 4
Sobel Test Results Sobel test shown in Figure 4 shows the Sobel test statistic value of 23797 with a one-
side significance value of 0009 because the significance value is lt005 therefore it can be said that the relationship quality is the intervening variable of the correlation of customer engagement and customer value
E DISCUSSION In this study Customer engagement positively influences relationship quality it means
that the better the customer engagement the better the relationship quality between the customer and the company By involving customers such as Inviting them to share about the things to improve the performance of the company or promote cooperation between companies and customers (share) inviting customers to know more about the company (learning) motivating customers to inform others about the companys products or services (advocating) motivating customers to promote products services of the company (socialization) and motivating customers to contribute ideas that might contribute to the improvement of performance and service of the companies (co-developing) then it will be able to create a good quality relationships between the companies and customers
1st Piksi International Conference on Knowledge and Sciences 2014 Page | 16
This is in line with the findings by Saks (2006) which states that the employee engagement has been implemented as a means to explore and explain the organizational commitment and behaviors of the members and also applied as a predictor of customer ratings toward the companies Furthermore the finding of the study is also in accordance with the opinion of Salanova et al (2005) that engagement has also been recognized as a way to improve morale cohesion and psychological relationship between the customer and the company or organization
The quality of a good relationship is manifested by the growth of customer trust the presence of customer commitment to always use the companys services and customer satisfaction with the overall service provided by the company
Customer engagement in this study positively contribute to customer value the better the company does customer engagement efforts it will contribute to higher customer value Involving customers such as inviting them to share about the things to improve the performance of the company or promote cooperation between companies and customers (share) inviting customers to know more about the company (learning) motivating the customer to inform others about product and service of companies (advocating) motivating customers to promote products services company (socialization) and motivating customers to contribute ideas to improve the performance and service companies (co-developing) will be able to create high customer value
The studys findings are in line with the study conducted by Li and Dant in Vivek (2011) which concludes that the intensity of customer engagement will be positively related to the value received by customers By the time customers are treated very well and considered as part of the company it will raise the principle of reciprocity in which the customer will give the good attitude as good as what they have received by the company (Bagozzidalam Vivek 2011)
Companies Interaction to customers via initiative engagement strategies will make the reciprocity norm appear to customersrsquo engagement If the company successfully engage customers customers will recognize the benefits received and give return values to indicate behavioral intentions In the return of value received customers will have a good faith and affective commitment to the organization and may be willing to develop a strong relationship with the organization
Moreover in this study relationship quality give positive influence on customer value The better relationship quality the better the customer value will be It means that relationship quality is one of the important factors to increase customer value Relationship quality is needed to drive steer cultivate and maintain customer behavior towards the achievement of better corporate performance
Relationship quality in this study also serves as a mediator of the influence of customer engagement toward customer value Customer value will be stronger with the role of relationship quality in it Starting from involving customers by sharing it will create a good relationship between the company and customers Then One of the good form of relationship is the emergence of self-confidence of the customers toward the the company Based on these good relationships created customers will give a positive assessment to the company by the form of manifesting customer awareness of the companys survival (affective commitment) which in this study seems to show the highest loading value of all indicators of customer value
Empirically findings of this study support the finding by John (2008) that concludes that the success in fostering good relationship with customers is actually a beneficial thing that can bring profit for both parties The relationship created between the company and the customer will make communication better
After feeling satisfied and having created a good relationship then the customers will tell the companyrsquos advantage to others The information spread by the customer can build a good image about the company and it can bring in new clients or customers for the companyBy a good relationship not only company but also customers will get profits and advantages Benefits and advantages gained by customers also vary eg special price given by the company and get extra service for being a loyal customer
F CONCLUSION Based on the analysis and discussion in this study it obtains a general conclusion as
follows
1st Piksi International Conference on Knowledge and Sciences 2014 Page | 17
1) Customer engagement have a positive significant influence on relationship quality It means that the better the customer engagement the better the relationship quality will be and the increased sharing programs between companies and customers is a way that can be used to improve customer engagement and gain trust of customers to be better 2) Customer engagement have a positive significant influence on customer value It means that the better the customer engagement the better the customer value will be and the improvement of sharing programs between companies and customers is a way that can be used to improve customer engagement and to establish customer awareness of the companiesrsquo survival company (affective commitment) And 3) Relationship quality have a positive significant influence on customer value it means that the better the relationship quality the better the customer value and establishing trust of the customer is a way to improve the quality of relationships and increase customer awareness of companies survival (affective commitment)
This study has limitations that is the study results can not be generalized beyond the sample of the study because the respondents used is only limited to customers of PT Siba Courier Indonesia representing Semarang and Jakarta city Thus to conduct similar study involving all customers of PT Siba Courier Indonesia spreading in many cities around Indonesia still need to be considered
BIBLIOGRAPHY Brodie JR Ilic A Hollebeek L 2011 Consumer engagement in a virtual brand community An
exploratory analysis Journal of Business Research xxx (2011) xxxndashxxx Cateora Philip R Graham John L 2007 Pemasaran Internasional 13th Edition Jakarta Salemba
Empat Chan S 2003 Relationship Marketing Inovasi Pemasaran yang Membuat Pelanggan Bertekuk
Lutut Jakarta Penerbit PT Gramedia Pustaka Utama Copulsky J R and M J Wolf 1990 Relationship Marketing Positioning for the Future The
Journal of Business Strategy Fandy Tjiptono 2005 Pemasaran Jasa 1st Edition Malang Bayu Media Publishing Fuad Masrsquoud 2004 Survai Diagnosis Organisasional Konsep dan Aplikasi Semarang Diponegoro
University Press Groumlnroos C 1994 ldquoFrom Marketing Mix to Relationship Marketing Towards a Paradigm Shift in
Marketingrdquo Management Decision Vol 32 No 2 pp 4-20 Hollebeek LD 2009 Demystifying Customer Engagement Toward the Development of a
Conceptual Model AMZNAC 2009 1-9 Imam Ghozali 2006 Structural Equation Modeling Metode Alternatif denganPLS (Kedua ed)
Semarang Diponegoro University Press Kotler Philip amp Keller Kevin Lane 2009 Manajemen Pemasaran Edisi 13 Jilid 2 Jakarta PT
Indeks Kotler Philip 2007 Manajemen Pemasaran Analisis Perencanaan Pengendalian Prentice Hall
Edisi Bahasa Indonesia Jakarta Salemba Empat Kumar V Lerzan A Bas D Rajkumar V Thorsten W dan Sebastian T 2010 Undervalued or
Overvalued Customers Capturing Total Customer engagement Value Journal of Service Research 13(3) 297-310
MacInnis dan Mello Jefrey A 2001 StrategicHuman Resources Management International Edition South Western Publishing Ohio
Mowen John C dan Minor M 2002 Perilaku Konsumen Jilid 1 Edisi Kelima (terjemahan) Jakarta Erlangga
Nammir Darman Sulaiman Sadiq Bayar Mohamed Rasheed Marane Aree Mohammed Ali 2012 Determine the Role of Customer engagement on Relationship Quality and Relationship Performance European Journal of Business and Management wwwiisteorgISSN 2222-1905 (Paper) ISSN 2222-2839 (Online) Vol 4 No11 2012
Peter Paul J and Olson Jerry C 2002Perilaku Konsumen dan StrategiPemasaran Edisi ke Empat (Terjemahan) Jakarta Penerbit Erlangga
1st Piksi International Conference on Knowledge and Sciences 2014 Page | 18
Rustono 2010 Faktor-faktor yang Mempengaruhi Implementasi Customer Relationship Mangement (CRM) untuk Meningkatkan Loyalitas PelangganRagamJurnal Pengembangan Humaniora Vol 10 No 3 Desember 2010 153-160
Ryals L and S Knox 2001 ldquoCross-Functional Issue in the Implementation of Relationship Marketing Through Customer relationship Managementrdquo European Management Journal Vol 19 No 5 pp 534-542
Setiadi J Nugroho 2005 Perilaku Konsumen Jakarta Kencana Sugiyono 2008 Metode Penelitian Kuantitatif Kualitatif dan RampD Bandung Alfabeta Tjahyadi RA 2010Membangun Hubungan Jangka Panjang Pelanggan Melalui Relationship
Marketing httpmajourmaranathaeduindexphpjurnal-manajemenarticleview178 Vivek SD 2011 A Scale Of Consumer Engagement Disertasi Department of Management and
Marketing in the Graduate School of The University of Alabama Yahya Y 2008 Pengaruh Customer Relationship Management (CRM) dalam Meningkatkan loyalitas
Pelanggan httpfebudiluhuracidwp-contentuploads201105Pengaruh-Customer-Relationship-Management-Dalam-Meningkatka-Loyalitas-Pelanggan-Yohanes-Yahyapdf
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T HE ROLE OF HUMAN RELATIONS IN IM PROVI NGT HE QUALITY OF
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1st Piksi International Conference on Knowledge and Sciences 2014 Page | 9
THE ROLE OF DYNAMIC MODEL OF CUSTOMER ENGAGEMENT TOWARD CUSTOMER VALUE
Ardian Adhiatma
M A Irfan Rahmana Dept of Management Faculty of Economics UNISSULA Semarang Indonesia
E-mail ardianunissulaacid irfanrahmanayahoocom
ABSTRACT The added value of the company at this time can not always be built only through customer satisfaction but more to factors such as communication coaching and sharing of the company as stated in the customer engagement The purpose of this study is to know the role of dynamic models of customer engagement toward customer value Explanatory research is conducted on 50 owners managers and authorized personnel in corporate decision The sampling used is purposive sampling Furthermore there are three variables involved in this study those are customer engagement relationship quality and customer value The data of these three variables is obtained from questionnaires Partial least squares analysis with smart PLS 20 is used to determine the correlation within variables Customer engagement shows a positive results and significant influence to customer value either directly or indirectly through the relationship quality in which the influence of indirect coefficient (0499) is higher than the direct coefficient (0491) So it can be concluded that customer engagement has a role in improving customer value through relationship quality
Keywords customer engagement relationship quality customer value
1st Piksi International Conference on Knowledge and Sciences 2014 Page | 10
A INTRODUCTION Nowadays Challenges in the business field have become increasingly tight and
complicated because the presence of dynamical complexities in the market values in which the needs and demands of customers as main stakeholders have changed massively The change of customers condition in demand occur because the presences of information and choices have grown rapidly Not only self-needs experiencing a change but also the ways customers access the needs also change from time to time In the past customer satisfactions were mostly determined by the quality of productsservices pricing and after-sales service Briefly its only three aspects that got too much attention marketers only focused in improving the quality of products pressing price efficiency to be affordable and opening outlets of after sales service Yet in the present day these aspects are considered not meet expectations customers want more of these aspects as a prerequisite for their satisfaction In conclusion it means that the needs of customers expectations has changed so that the programs and approaches to satisfy customers should also be conducted (Rustono 2010)
The phenomena as mentioned above also occur in courier Industries The rapid competition of courier industries in Indonesia is not only caused by globalization but also customers awareness of price and high demands The rapid growth of communication and technology also contribute to the increase of competition intensity since it gives customers access to more information about the wide range of products or services offered These conditions lead customers to have more choices in spending their money
The added value of the company at this time can not always be built only through customer satisfaction but also more to other factors such as communication coaching and sharing of the company as stated in the customer engagement Customer engagement is the peak of the companys relationship with customers to survive and thrive to launch new products to pay more attention into competitor products to sell more products from competitors Besides that the companies also have to implement Customer Relationship Management whereby customer engagement is one of its components At the level of customer engagement relationship built has already been a combination of rational and emotional aspects The quality of this relationship has reached the level of the inner closeness and long-term dimension (Shevlin 2011 in Vivek 2011)
The concept of customer engagement has also been frequently considered as a potential superior strength to predict and to explain the context of the service retention and customer loyalty (Bowden 2009 in Hollebeek 2009) Furthermore Customer engagement is a promising new concept and expected to exceed the contribution given by traditional relational construction including perceived quality customer engagement and satisfaction in explaining and predicting customer value (Hollebeek 2009) Customer value is defined as the emotional bond that exists between customers and manufacturers because the customers use the products and services of the company and then find that the product or service give them additional value (Tjiptono 2005)
The study by Hollebeek (2009) concludes that the customers engagement improve loyalty satisfaction empowerment connection emotional bonding trust and commitment Furthermore Kumar et al (2010) emphasizes that customers can be involved in creating value for the company in various ways first the customer lifetime value (customer buying behavior) second the customer referrals value (related to referral incentives of new customers) third customer influence value (related to customers behavior to influence other customers which increases the acquisition retention and share of wallet through communication among customers and existing prospects) and fourth is the customer knowledge value (surplus for the company with feedback from customers) Customer engagemet value (CEV) provides a comprehensive framework that can ultimately lead to more efficient marketing strategies that enable a higher long-term contribution to customers The study by Vivek (2011) proves that customers engagement in turn can positively influence the companys relationship with customers and raises good faith and intention to do business with the company
The capability of Customer engagement in predicting customer value has been adopted as a marketing strategy by PT Siba Courier Indonesia This strategy is implemented because until this time if it is compared with its competitors PT Siba Courier Indonesia is far behind from their competitors in terms of the availability of fleet infrastructure and age In the future PT Siba Courier Indonesia is predicted to be abandoned by its customers if only rely on the availability of
1st Piksi International Conference on Knowledge and Sciences 2014 Page | 11
limited facilities and infrastructure The fact that the customers of PT Siba Courier Indonesia both in Jakarta and Semarang are still loyal to use the services of this company and even if they keep patient waiting queue to obtain service because the company have overload in order delivery If in general to improve the competitiveness and to maintain the survival of the company efforts are made through internal factors (improvement of service quality provision of infrastructure and facilities services technological advances etc) in this study exactly at PT Siba Courier Indonesia the related cases are not found Therefore it is interesting to do a more focused study on the role of dynamic models of customer engagement toward customer value in the PT Siba Courier Indonesia
B LITERATURE REVIEW
Customer Engagement Customer engagement (CE) is the intensity of customer participation by representatives
of the organization and through other customers in the process of collaborative knowledge exchange (Wagner and Majchrzak 200720) in Vivek (2011) Engagement refers to customersrsquo perception toward the importance or personal relevance of objects events and activities In this case Customers will acquire that a certain product has a personal relevance and relationship with them Relationship quality
The relationship quality or connections is represented through real-image of relationship and individual experience of each party in the relationship A subjective connection is obtained through positive passion energy matter and togetherness (Quinn and Dutton 2005 Heaphy amp Dutton 2008 in Vivek 2011) in which Two people involved in the connection and active participation (Heaphy and Dutton Vivek 2008267 in 2011)
In this study connection is defined as a positive emotional relationship that customers have a sense of belonging to the companies The quality of relationship construction is based on the amount of time spent in the workplace employees are significantly influenced by their relationships formed in the workplace so the connection significantly influences the function of the organization Customer value
The concept of customer value (CV) by Kotler and Keller (2009 14) is the combination of quality service price of products or services Furthermore Customer value is the dispute between the amount of value for customers and the total cost of customers and the amount of value for customers are customers expected profit of certain goods or services
According to Best in (Sumarwan et al 2010 30) the customer value is a benefit or profit obtained by customers lessened by the cost of the purchase Based on this concept customer value is derived from the economic customer and emotional benefits Economic Benefit is obtained from surplus of price and cost but not the cost of purchase which includes acquisition ownership usage maintenance repairment and disposal costs Customers Benefit is derived from the product appearance service and reputation Emotional Benefit is the overplus of the product to meet the emotional needs of the customer associated with psychological needs types of customers personality and customer personal value
C RESEARCH METHOD
The population of this study is all customers of PT Siba Courier Indonesia totaling 40 companies spread over two cities Semarang and Jakarta Because of limited number of population the total population is all designated as sample or census research Moreover it is also with the consideration that using total population as a sample will get a more representative description and minimize the error rates so that the data obtained will be close the real value The sample proposed is the companies which at least for three years have actively used services of PT Siba Courier Indonesia Then from each company it is selected two people from the owner and the manager or the other person who has the authority to make decision (the decision maker)
The data collection method is purposive sampling and the analysis techniques is performed by Partial Least Square and Sobel Test
Table 1
1st Piksi International Conference on Knowledge and Sciences 2014 Page | 12
Research Variables and Indicators No Variables Indicators Shape
1 Customer engagement is the level of customers attention to the company
Sharing (CE1)
Likert Scale 1-5
Learning (CE2) Advocating (CE3) Socialization (CE4) Co-developing (CE5)
2 Relationship quality is quality of the relationship created between customer and companies
Trust (RQ1) Commitment (RQ2) Satisfaction (RQ3)
3
Customer value is the matched value perceived by customers on the services prices of the products quality received by them
Connection with Company (CV1) Goodwill (CV2) Word of Mouth (CV3) Affective Commitment (CV4) Intent to do Business (CV5)
Data Analysis
PLS (Partial Least Square) is used to examine and test the hypothesis proposed PLS has advantages that lsquoit involves no assumptions about the population or scale of measurement (Fornell amp Bookstein 1982) and consequently it works without distributional assumptions and by nominal ordinal and interval scaled variables However one has to bear in mind that the PLS like any statistical technique also requires certain assumptions to be fulfilled Apart from the standard ones (ie the classical Gaussian linear ordinary least squares) regression models (see eg Gujarati 1995) the most important predictor of the assumption is the specification (Chin amp Newsted 1999)
D FINDINGS Based on data analysis of the study it can be explained the analysis of partial least
squares (PLS) as follows Inner PLS model results
The indicators of customer engagement consist of sharing (CE1) learning (CE2) advocating (CE3) socialization (CE4) and co-developing (CE5) The outline of the PLS model for the indicators proposed is shown in Table 2
Table 2 Test Results of Validity and Reliability of Customer Engagement Indicator Variables
No Indicator Test Validity Composite Reliability Loading T-Statistic Criteria
1 CE 1 0919 9438 valid
0876 2 CE 2 0753 5330 valid 3 CE 3 0711 4915 valid 4 CE 4 0851 7639 valid 5 CE 5 0854 6314 valid
Sources Primary data processed in 2014
Table 2 is the result of convergent validity test 5 indicators of customer engagement have loading factor value more than 05 by the T statistical value of all indicators greater than T Table by 196 so that all indicators of customer engagement can be said to be valid The order of the strongest to the weakest indicator is CE1 (sharing) CE5 (co-developing) CE4
1st Piksi International Conference on Knowledge and Sciences 2014 Page | 13
(socialization) CE2 (learning) and CE3 (advocating) Based on the composite reliability test of indicator measuring the construct it shows a satisfactory results in the amount of 0876 meaning that the construct of customer engagement can provide relatively similar results when it is measured again by the same subjects
The indicator of Relationship quality consists of three indicators namely trust (RQ1) commitment (RQ2) and satisfaction (RQ3) The results of the PLS model for the outer indicators is shown in Table 3 below
Table 3
Test Results of Validity and Reliability of Relationship Quality Indicator Variables
No Indicator Test Validity Composite Reliability Loading T-Statistic Criteria
1 RQ1 0822 4959 valid 0731 2 RQ2 0812 5508 valid
3 RQ3 0785 5318 valid
Sources Primary data were processed in 2014
Table 3 is the result of convergent validity test 3 indicators of relationship quality has a loading factor values more than 05 and the value of the T statistic is higher than the T table by 196 so that all indicators of relationship quality can be said to be valid The order of the strongest to the weakest indicator is RQ1 RQ2 and RQ3 Based on the composite reliability test of the indicators measuring construction it showes a satisfactory results in the amount of 0731 meaning that the relationship quality constructs can provide relatively similar results if it is measured again by the same subjects
The indicator of Customer value consists of 5 indicators the connection with the commpany (CV1) goodwill (CV2) word of mouth (CV3) affective commitment (CV4) and intent to do business (CV5) The result of outer model is in Table 4
Table 4 Test Results of Validity and Reliability of Customer value Indicator Variables
No Indicator Test Validity Composite Reliability Loading T-Statistic Criteria
1 CV1 0 815 9 382 valid
0860 2 CV2 0 752 6 211 valid 3 CV3 0 712 4 022 valid 4 CV4 0 886 7 349 valid 5 CV5 0 837 7 649 valid
Table 4 is the result of convergent validity test 5 indicators of customer value has a
loading factor value more than 05 and the value of statistical Tgt T Table by 196 so that all indicators of customer value can be said to be valid The order of the strongest to the weakest indicator is CV4 CV5 CV1 CV2 and CV3 Based on the composite reliability test of indicators measuring the block construct it shows a satisfactory results in the amount of 0860 meaning that the construct of customer value can provide relatively similar results if it is measured again by the same subjects Inner PLS model results
Inner models describes the relationship among latent variables based on substantive theory The results of the bootstrapping output graphs display the relationship among variables such as customer engagement relationship quality and customer value as shown in Figure 2
1st Piksi International Conference on Knowledge and Sciences 2014 Page | 14
Based on calculations in Figure 2 It is known that the direct influence of customer engagement on customer value is equal to 0491 with the indirect influence of 0984 x 0507 = 0499 It means that the indirect influence is higher than the direct Thus the relationship quality variable is the path of the relationship between the customer engagement and customer value Briefly it means that customer engagement can directly improve customer value by trying to increase the relationship quality first
Sources Primary data processed 2014 Figure 1
The relationship Model between the Customer Engagement Relationship quality and Customer value of PT Siba Courier Indonesia
Figure 1 also shows the magnitude of the determination coefficient The coefficient of determination is used to recognize how significant the influence of exogenous variables toward endogenous the higher the value of the coefficient of determination the higher the influence of exogenous variables on endogenous will be R-square value generated from the relationship between customer engagement with the relationship quality is 0969 meaning that the variation of relationship quality which can be explained by customer engagement is 969 while the remaining 31 is obtained from other variables Then R-square value of the relationship model between customer engagement relationship quality and customer value is 0988 it means that the variation of customer value that can be explained by the relationship quality and customer engagement is 988 while the remaining 12 are determined by other variables
Then the hypothesis test is performed by looking at the value of t count if tcount is higher than ttable (alpha 5 = 196) then the alternative hypothesis (H a) is accepted and H 0 is rejected and so that for the opposite Based on the PLS test the results of testing the relationship among variables can be seen in Table 9 and Figure 3
Table 5 Results of Inner Weight
No The relationship among variables Original Sample (O) T Statistics (| O Sterr |) Criteria
1 CE -gt CV 0491 2312 Significant 2 CE -gt RQ 0984 110053 Significant 3 RQ -gt CV 0507 2383 Significant
Sources Primary data processed 2014
1st Piksi International Conference on Knowledge and Sciences 2014 Page | 15
1 The first hypothesis the customer engagement significantly influences the relationship quality Based on the PLS calculations result in Table 8 testing the first hypothesis about the
influence of customer engagement on relationship quality it is obtained the value of the estimated coefficient (β) of 0984 with t statistic value of 110053 This result is much higher than t-table value which is only 196 Then it can be concluded that there is a positive significant influence on the customer engagement variable toward the relationship quality Thus the first hypothesis is accepted
2 The second hypothesis the customer engagement significantly influences the customer value Based on the PLS calculations result in Table 9 testing the second hypothesis about the
influence of customer engagement toward customer value it is obtained the value of the estimated coefficient (β) of 0491 with t statistic value of 2312 This result is higher than t-table value which is only 196 So it can be concluded that there is a positive significant influence of the customer engagement variable toward customer value Thus the second hypothesis is accepted
3 The third hypothesis relationship quality significantly influence customer value Based on the PLS calculations result in Table 9 testing the third hypothesis about the
influence of relationship quality on customer value it is obtained the value of the estimated coefficient (β) of 0507 with t statistic value of 2383 This result is higher than t-table value which is only 196 So it can be concluded that there is a positive significant influence of the relationship quality variable on customer value Thus the third hypothesis is accepted Sobel Test Results
Sobel test is conducted by testing the strength of the indirect influence of independent variables (customer engagement) toward dependent variable (customer value) through intervening variable (relationship quality) This test is done by Online Sobel Test Calculator for the Significance of Mediation by entering the regression coefficient and standard error values of the customer engagement variables to the relationship quality and the regression coefficient and standard error values of the relationship quality variable to customer value in which it gets the result as follows
Figure 4
Sobel Test Results Sobel test shown in Figure 4 shows the Sobel test statistic value of 23797 with a one-
side significance value of 0009 because the significance value is lt005 therefore it can be said that the relationship quality is the intervening variable of the correlation of customer engagement and customer value
E DISCUSSION In this study Customer engagement positively influences relationship quality it means
that the better the customer engagement the better the relationship quality between the customer and the company By involving customers such as Inviting them to share about the things to improve the performance of the company or promote cooperation between companies and customers (share) inviting customers to know more about the company (learning) motivating customers to inform others about the companys products or services (advocating) motivating customers to promote products services of the company (socialization) and motivating customers to contribute ideas that might contribute to the improvement of performance and service of the companies (co-developing) then it will be able to create a good quality relationships between the companies and customers
1st Piksi International Conference on Knowledge and Sciences 2014 Page | 16
This is in line with the findings by Saks (2006) which states that the employee engagement has been implemented as a means to explore and explain the organizational commitment and behaviors of the members and also applied as a predictor of customer ratings toward the companies Furthermore the finding of the study is also in accordance with the opinion of Salanova et al (2005) that engagement has also been recognized as a way to improve morale cohesion and psychological relationship between the customer and the company or organization
The quality of a good relationship is manifested by the growth of customer trust the presence of customer commitment to always use the companys services and customer satisfaction with the overall service provided by the company
Customer engagement in this study positively contribute to customer value the better the company does customer engagement efforts it will contribute to higher customer value Involving customers such as inviting them to share about the things to improve the performance of the company or promote cooperation between companies and customers (share) inviting customers to know more about the company (learning) motivating the customer to inform others about product and service of companies (advocating) motivating customers to promote products services company (socialization) and motivating customers to contribute ideas to improve the performance and service companies (co-developing) will be able to create high customer value
The studys findings are in line with the study conducted by Li and Dant in Vivek (2011) which concludes that the intensity of customer engagement will be positively related to the value received by customers By the time customers are treated very well and considered as part of the company it will raise the principle of reciprocity in which the customer will give the good attitude as good as what they have received by the company (Bagozzidalam Vivek 2011)
Companies Interaction to customers via initiative engagement strategies will make the reciprocity norm appear to customersrsquo engagement If the company successfully engage customers customers will recognize the benefits received and give return values to indicate behavioral intentions In the return of value received customers will have a good faith and affective commitment to the organization and may be willing to develop a strong relationship with the organization
Moreover in this study relationship quality give positive influence on customer value The better relationship quality the better the customer value will be It means that relationship quality is one of the important factors to increase customer value Relationship quality is needed to drive steer cultivate and maintain customer behavior towards the achievement of better corporate performance
Relationship quality in this study also serves as a mediator of the influence of customer engagement toward customer value Customer value will be stronger with the role of relationship quality in it Starting from involving customers by sharing it will create a good relationship between the company and customers Then One of the good form of relationship is the emergence of self-confidence of the customers toward the the company Based on these good relationships created customers will give a positive assessment to the company by the form of manifesting customer awareness of the companys survival (affective commitment) which in this study seems to show the highest loading value of all indicators of customer value
Empirically findings of this study support the finding by John (2008) that concludes that the success in fostering good relationship with customers is actually a beneficial thing that can bring profit for both parties The relationship created between the company and the customer will make communication better
After feeling satisfied and having created a good relationship then the customers will tell the companyrsquos advantage to others The information spread by the customer can build a good image about the company and it can bring in new clients or customers for the companyBy a good relationship not only company but also customers will get profits and advantages Benefits and advantages gained by customers also vary eg special price given by the company and get extra service for being a loyal customer
F CONCLUSION Based on the analysis and discussion in this study it obtains a general conclusion as
follows
1st Piksi International Conference on Knowledge and Sciences 2014 Page | 17
1) Customer engagement have a positive significant influence on relationship quality It means that the better the customer engagement the better the relationship quality will be and the increased sharing programs between companies and customers is a way that can be used to improve customer engagement and gain trust of customers to be better 2) Customer engagement have a positive significant influence on customer value It means that the better the customer engagement the better the customer value will be and the improvement of sharing programs between companies and customers is a way that can be used to improve customer engagement and to establish customer awareness of the companiesrsquo survival company (affective commitment) And 3) Relationship quality have a positive significant influence on customer value it means that the better the relationship quality the better the customer value and establishing trust of the customer is a way to improve the quality of relationships and increase customer awareness of companies survival (affective commitment)
This study has limitations that is the study results can not be generalized beyond the sample of the study because the respondents used is only limited to customers of PT Siba Courier Indonesia representing Semarang and Jakarta city Thus to conduct similar study involving all customers of PT Siba Courier Indonesia spreading in many cities around Indonesia still need to be considered
BIBLIOGRAPHY Brodie JR Ilic A Hollebeek L 2011 Consumer engagement in a virtual brand community An
exploratory analysis Journal of Business Research xxx (2011) xxxndashxxx Cateora Philip R Graham John L 2007 Pemasaran Internasional 13th Edition Jakarta Salemba
Empat Chan S 2003 Relationship Marketing Inovasi Pemasaran yang Membuat Pelanggan Bertekuk
Lutut Jakarta Penerbit PT Gramedia Pustaka Utama Copulsky J R and M J Wolf 1990 Relationship Marketing Positioning for the Future The
Journal of Business Strategy Fandy Tjiptono 2005 Pemasaran Jasa 1st Edition Malang Bayu Media Publishing Fuad Masrsquoud 2004 Survai Diagnosis Organisasional Konsep dan Aplikasi Semarang Diponegoro
University Press Groumlnroos C 1994 ldquoFrom Marketing Mix to Relationship Marketing Towards a Paradigm Shift in
Marketingrdquo Management Decision Vol 32 No 2 pp 4-20 Hollebeek LD 2009 Demystifying Customer Engagement Toward the Development of a
Conceptual Model AMZNAC 2009 1-9 Imam Ghozali 2006 Structural Equation Modeling Metode Alternatif denganPLS (Kedua ed)
Semarang Diponegoro University Press Kotler Philip amp Keller Kevin Lane 2009 Manajemen Pemasaran Edisi 13 Jilid 2 Jakarta PT
Indeks Kotler Philip 2007 Manajemen Pemasaran Analisis Perencanaan Pengendalian Prentice Hall
Edisi Bahasa Indonesia Jakarta Salemba Empat Kumar V Lerzan A Bas D Rajkumar V Thorsten W dan Sebastian T 2010 Undervalued or
Overvalued Customers Capturing Total Customer engagement Value Journal of Service Research 13(3) 297-310
MacInnis dan Mello Jefrey A 2001 StrategicHuman Resources Management International Edition South Western Publishing Ohio
Mowen John C dan Minor M 2002 Perilaku Konsumen Jilid 1 Edisi Kelima (terjemahan) Jakarta Erlangga
Nammir Darman Sulaiman Sadiq Bayar Mohamed Rasheed Marane Aree Mohammed Ali 2012 Determine the Role of Customer engagement on Relationship Quality and Relationship Performance European Journal of Business and Management wwwiisteorgISSN 2222-1905 (Paper) ISSN 2222-2839 (Online) Vol 4 No11 2012
Peter Paul J and Olson Jerry C 2002Perilaku Konsumen dan StrategiPemasaran Edisi ke Empat (Terjemahan) Jakarta Penerbit Erlangga
1st Piksi International Conference on Knowledge and Sciences 2014 Page | 18
Rustono 2010 Faktor-faktor yang Mempengaruhi Implementasi Customer Relationship Mangement (CRM) untuk Meningkatkan Loyalitas PelangganRagamJurnal Pengembangan Humaniora Vol 10 No 3 Desember 2010 153-160
Ryals L and S Knox 2001 ldquoCross-Functional Issue in the Implementation of Relationship Marketing Through Customer relationship Managementrdquo European Management Journal Vol 19 No 5 pp 534-542
Setiadi J Nugroho 2005 Perilaku Konsumen Jakarta Kencana Sugiyono 2008 Metode Penelitian Kuantitatif Kualitatif dan RampD Bandung Alfabeta Tjahyadi RA 2010Membangun Hubungan Jangka Panjang Pelanggan Melalui Relationship
Marketing httpmajourmaranathaeduindexphpjurnal-manajemenarticleview178 Vivek SD 2011 A Scale Of Consumer Engagement Disertasi Department of Management and
Marketing in the Graduate School of The University of Alabama Yahya Y 2008 Pengaruh Customer Relationship Management (CRM) dalam Meningkatkan loyalitas
Pelanggan httpfebudiluhuracidwp-contentuploads201105Pengaruh-Customer-Relationship-Management-Dalam-Meningkatka-Loyalitas-Pelanggan-Yohanes-Yahyapdf
- -
(0)
I~ 1 PICKS 2014 Committee ISSN 2407 ~ l722 ~ POLITEKNIK PIKSI GANESHA Gedung Rektoratmiddotmiddot Kampus 1 JI jend Gatot Stibroto No 301 Bandung 40274 9171111~JJ
Published by LPPM Pollteknlk Piksi GaneshO
-Batidung lndonesIClmiddot
1st Piksi International Conference on Knowledge and Sciences 2014 Page | 9
THE ROLE OF DYNAMIC MODEL OF CUSTOMER ENGAGEMENT TOWARD CUSTOMER VALUE
Ardian Adhiatma
M A Irfan Rahmana Dept of Management Faculty of Economics UNISSULA Semarang Indonesia
E-mail ardianunissulaacid irfanrahmanayahoocom
ABSTRACT The added value of the company at this time can not always be built only through customer satisfaction but more to factors such as communication coaching and sharing of the company as stated in the customer engagement The purpose of this study is to know the role of dynamic models of customer engagement toward customer value Explanatory research is conducted on 50 owners managers and authorized personnel in corporate decision The sampling used is purposive sampling Furthermore there are three variables involved in this study those are customer engagement relationship quality and customer value The data of these three variables is obtained from questionnaires Partial least squares analysis with smart PLS 20 is used to determine the correlation within variables Customer engagement shows a positive results and significant influence to customer value either directly or indirectly through the relationship quality in which the influence of indirect coefficient (0499) is higher than the direct coefficient (0491) So it can be concluded that customer engagement has a role in improving customer value through relationship quality
Keywords customer engagement relationship quality customer value
1st Piksi International Conference on Knowledge and Sciences 2014 Page | 10
A INTRODUCTION Nowadays Challenges in the business field have become increasingly tight and
complicated because the presence of dynamical complexities in the market values in which the needs and demands of customers as main stakeholders have changed massively The change of customers condition in demand occur because the presences of information and choices have grown rapidly Not only self-needs experiencing a change but also the ways customers access the needs also change from time to time In the past customer satisfactions were mostly determined by the quality of productsservices pricing and after-sales service Briefly its only three aspects that got too much attention marketers only focused in improving the quality of products pressing price efficiency to be affordable and opening outlets of after sales service Yet in the present day these aspects are considered not meet expectations customers want more of these aspects as a prerequisite for their satisfaction In conclusion it means that the needs of customers expectations has changed so that the programs and approaches to satisfy customers should also be conducted (Rustono 2010)
The phenomena as mentioned above also occur in courier Industries The rapid competition of courier industries in Indonesia is not only caused by globalization but also customers awareness of price and high demands The rapid growth of communication and technology also contribute to the increase of competition intensity since it gives customers access to more information about the wide range of products or services offered These conditions lead customers to have more choices in spending their money
The added value of the company at this time can not always be built only through customer satisfaction but also more to other factors such as communication coaching and sharing of the company as stated in the customer engagement Customer engagement is the peak of the companys relationship with customers to survive and thrive to launch new products to pay more attention into competitor products to sell more products from competitors Besides that the companies also have to implement Customer Relationship Management whereby customer engagement is one of its components At the level of customer engagement relationship built has already been a combination of rational and emotional aspects The quality of this relationship has reached the level of the inner closeness and long-term dimension (Shevlin 2011 in Vivek 2011)
The concept of customer engagement has also been frequently considered as a potential superior strength to predict and to explain the context of the service retention and customer loyalty (Bowden 2009 in Hollebeek 2009) Furthermore Customer engagement is a promising new concept and expected to exceed the contribution given by traditional relational construction including perceived quality customer engagement and satisfaction in explaining and predicting customer value (Hollebeek 2009) Customer value is defined as the emotional bond that exists between customers and manufacturers because the customers use the products and services of the company and then find that the product or service give them additional value (Tjiptono 2005)
The study by Hollebeek (2009) concludes that the customers engagement improve loyalty satisfaction empowerment connection emotional bonding trust and commitment Furthermore Kumar et al (2010) emphasizes that customers can be involved in creating value for the company in various ways first the customer lifetime value (customer buying behavior) second the customer referrals value (related to referral incentives of new customers) third customer influence value (related to customers behavior to influence other customers which increases the acquisition retention and share of wallet through communication among customers and existing prospects) and fourth is the customer knowledge value (surplus for the company with feedback from customers) Customer engagemet value (CEV) provides a comprehensive framework that can ultimately lead to more efficient marketing strategies that enable a higher long-term contribution to customers The study by Vivek (2011) proves that customers engagement in turn can positively influence the companys relationship with customers and raises good faith and intention to do business with the company
The capability of Customer engagement in predicting customer value has been adopted as a marketing strategy by PT Siba Courier Indonesia This strategy is implemented because until this time if it is compared with its competitors PT Siba Courier Indonesia is far behind from their competitors in terms of the availability of fleet infrastructure and age In the future PT Siba Courier Indonesia is predicted to be abandoned by its customers if only rely on the availability of
1st Piksi International Conference on Knowledge and Sciences 2014 Page | 11
limited facilities and infrastructure The fact that the customers of PT Siba Courier Indonesia both in Jakarta and Semarang are still loyal to use the services of this company and even if they keep patient waiting queue to obtain service because the company have overload in order delivery If in general to improve the competitiveness and to maintain the survival of the company efforts are made through internal factors (improvement of service quality provision of infrastructure and facilities services technological advances etc) in this study exactly at PT Siba Courier Indonesia the related cases are not found Therefore it is interesting to do a more focused study on the role of dynamic models of customer engagement toward customer value in the PT Siba Courier Indonesia
B LITERATURE REVIEW
Customer Engagement Customer engagement (CE) is the intensity of customer participation by representatives
of the organization and through other customers in the process of collaborative knowledge exchange (Wagner and Majchrzak 200720) in Vivek (2011) Engagement refers to customersrsquo perception toward the importance or personal relevance of objects events and activities In this case Customers will acquire that a certain product has a personal relevance and relationship with them Relationship quality
The relationship quality or connections is represented through real-image of relationship and individual experience of each party in the relationship A subjective connection is obtained through positive passion energy matter and togetherness (Quinn and Dutton 2005 Heaphy amp Dutton 2008 in Vivek 2011) in which Two people involved in the connection and active participation (Heaphy and Dutton Vivek 2008267 in 2011)
In this study connection is defined as a positive emotional relationship that customers have a sense of belonging to the companies The quality of relationship construction is based on the amount of time spent in the workplace employees are significantly influenced by their relationships formed in the workplace so the connection significantly influences the function of the organization Customer value
The concept of customer value (CV) by Kotler and Keller (2009 14) is the combination of quality service price of products or services Furthermore Customer value is the dispute between the amount of value for customers and the total cost of customers and the amount of value for customers are customers expected profit of certain goods or services
According to Best in (Sumarwan et al 2010 30) the customer value is a benefit or profit obtained by customers lessened by the cost of the purchase Based on this concept customer value is derived from the economic customer and emotional benefits Economic Benefit is obtained from surplus of price and cost but not the cost of purchase which includes acquisition ownership usage maintenance repairment and disposal costs Customers Benefit is derived from the product appearance service and reputation Emotional Benefit is the overplus of the product to meet the emotional needs of the customer associated with psychological needs types of customers personality and customer personal value
C RESEARCH METHOD
The population of this study is all customers of PT Siba Courier Indonesia totaling 40 companies spread over two cities Semarang and Jakarta Because of limited number of population the total population is all designated as sample or census research Moreover it is also with the consideration that using total population as a sample will get a more representative description and minimize the error rates so that the data obtained will be close the real value The sample proposed is the companies which at least for three years have actively used services of PT Siba Courier Indonesia Then from each company it is selected two people from the owner and the manager or the other person who has the authority to make decision (the decision maker)
The data collection method is purposive sampling and the analysis techniques is performed by Partial Least Square and Sobel Test
Table 1
1st Piksi International Conference on Knowledge and Sciences 2014 Page | 12
Research Variables and Indicators No Variables Indicators Shape
1 Customer engagement is the level of customers attention to the company
Sharing (CE1)
Likert Scale 1-5
Learning (CE2) Advocating (CE3) Socialization (CE4) Co-developing (CE5)
2 Relationship quality is quality of the relationship created between customer and companies
Trust (RQ1) Commitment (RQ2) Satisfaction (RQ3)
3
Customer value is the matched value perceived by customers on the services prices of the products quality received by them
Connection with Company (CV1) Goodwill (CV2) Word of Mouth (CV3) Affective Commitment (CV4) Intent to do Business (CV5)
Data Analysis
PLS (Partial Least Square) is used to examine and test the hypothesis proposed PLS has advantages that lsquoit involves no assumptions about the population or scale of measurement (Fornell amp Bookstein 1982) and consequently it works without distributional assumptions and by nominal ordinal and interval scaled variables However one has to bear in mind that the PLS like any statistical technique also requires certain assumptions to be fulfilled Apart from the standard ones (ie the classical Gaussian linear ordinary least squares) regression models (see eg Gujarati 1995) the most important predictor of the assumption is the specification (Chin amp Newsted 1999)
D FINDINGS Based on data analysis of the study it can be explained the analysis of partial least
squares (PLS) as follows Inner PLS model results
The indicators of customer engagement consist of sharing (CE1) learning (CE2) advocating (CE3) socialization (CE4) and co-developing (CE5) The outline of the PLS model for the indicators proposed is shown in Table 2
Table 2 Test Results of Validity and Reliability of Customer Engagement Indicator Variables
No Indicator Test Validity Composite Reliability Loading T-Statistic Criteria
1 CE 1 0919 9438 valid
0876 2 CE 2 0753 5330 valid 3 CE 3 0711 4915 valid 4 CE 4 0851 7639 valid 5 CE 5 0854 6314 valid
Sources Primary data processed in 2014
Table 2 is the result of convergent validity test 5 indicators of customer engagement have loading factor value more than 05 by the T statistical value of all indicators greater than T Table by 196 so that all indicators of customer engagement can be said to be valid The order of the strongest to the weakest indicator is CE1 (sharing) CE5 (co-developing) CE4
1st Piksi International Conference on Knowledge and Sciences 2014 Page | 13
(socialization) CE2 (learning) and CE3 (advocating) Based on the composite reliability test of indicator measuring the construct it shows a satisfactory results in the amount of 0876 meaning that the construct of customer engagement can provide relatively similar results when it is measured again by the same subjects
The indicator of Relationship quality consists of three indicators namely trust (RQ1) commitment (RQ2) and satisfaction (RQ3) The results of the PLS model for the outer indicators is shown in Table 3 below
Table 3
Test Results of Validity and Reliability of Relationship Quality Indicator Variables
No Indicator Test Validity Composite Reliability Loading T-Statistic Criteria
1 RQ1 0822 4959 valid 0731 2 RQ2 0812 5508 valid
3 RQ3 0785 5318 valid
Sources Primary data were processed in 2014
Table 3 is the result of convergent validity test 3 indicators of relationship quality has a loading factor values more than 05 and the value of the T statistic is higher than the T table by 196 so that all indicators of relationship quality can be said to be valid The order of the strongest to the weakest indicator is RQ1 RQ2 and RQ3 Based on the composite reliability test of the indicators measuring construction it showes a satisfactory results in the amount of 0731 meaning that the relationship quality constructs can provide relatively similar results if it is measured again by the same subjects
The indicator of Customer value consists of 5 indicators the connection with the commpany (CV1) goodwill (CV2) word of mouth (CV3) affective commitment (CV4) and intent to do business (CV5) The result of outer model is in Table 4
Table 4 Test Results of Validity and Reliability of Customer value Indicator Variables
No Indicator Test Validity Composite Reliability Loading T-Statistic Criteria
1 CV1 0 815 9 382 valid
0860 2 CV2 0 752 6 211 valid 3 CV3 0 712 4 022 valid 4 CV4 0 886 7 349 valid 5 CV5 0 837 7 649 valid
Table 4 is the result of convergent validity test 5 indicators of customer value has a
loading factor value more than 05 and the value of statistical Tgt T Table by 196 so that all indicators of customer value can be said to be valid The order of the strongest to the weakest indicator is CV4 CV5 CV1 CV2 and CV3 Based on the composite reliability test of indicators measuring the block construct it shows a satisfactory results in the amount of 0860 meaning that the construct of customer value can provide relatively similar results if it is measured again by the same subjects Inner PLS model results
Inner models describes the relationship among latent variables based on substantive theory The results of the bootstrapping output graphs display the relationship among variables such as customer engagement relationship quality and customer value as shown in Figure 2
1st Piksi International Conference on Knowledge and Sciences 2014 Page | 14
Based on calculations in Figure 2 It is known that the direct influence of customer engagement on customer value is equal to 0491 with the indirect influence of 0984 x 0507 = 0499 It means that the indirect influence is higher than the direct Thus the relationship quality variable is the path of the relationship between the customer engagement and customer value Briefly it means that customer engagement can directly improve customer value by trying to increase the relationship quality first
Sources Primary data processed 2014 Figure 1
The relationship Model between the Customer Engagement Relationship quality and Customer value of PT Siba Courier Indonesia
Figure 1 also shows the magnitude of the determination coefficient The coefficient of determination is used to recognize how significant the influence of exogenous variables toward endogenous the higher the value of the coefficient of determination the higher the influence of exogenous variables on endogenous will be R-square value generated from the relationship between customer engagement with the relationship quality is 0969 meaning that the variation of relationship quality which can be explained by customer engagement is 969 while the remaining 31 is obtained from other variables Then R-square value of the relationship model between customer engagement relationship quality and customer value is 0988 it means that the variation of customer value that can be explained by the relationship quality and customer engagement is 988 while the remaining 12 are determined by other variables
Then the hypothesis test is performed by looking at the value of t count if tcount is higher than ttable (alpha 5 = 196) then the alternative hypothesis (H a) is accepted and H 0 is rejected and so that for the opposite Based on the PLS test the results of testing the relationship among variables can be seen in Table 9 and Figure 3
Table 5 Results of Inner Weight
No The relationship among variables Original Sample (O) T Statistics (| O Sterr |) Criteria
1 CE -gt CV 0491 2312 Significant 2 CE -gt RQ 0984 110053 Significant 3 RQ -gt CV 0507 2383 Significant
Sources Primary data processed 2014
1st Piksi International Conference on Knowledge and Sciences 2014 Page | 15
1 The first hypothesis the customer engagement significantly influences the relationship quality Based on the PLS calculations result in Table 8 testing the first hypothesis about the
influence of customer engagement on relationship quality it is obtained the value of the estimated coefficient (β) of 0984 with t statistic value of 110053 This result is much higher than t-table value which is only 196 Then it can be concluded that there is a positive significant influence on the customer engagement variable toward the relationship quality Thus the first hypothesis is accepted
2 The second hypothesis the customer engagement significantly influences the customer value Based on the PLS calculations result in Table 9 testing the second hypothesis about the
influence of customer engagement toward customer value it is obtained the value of the estimated coefficient (β) of 0491 with t statistic value of 2312 This result is higher than t-table value which is only 196 So it can be concluded that there is a positive significant influence of the customer engagement variable toward customer value Thus the second hypothesis is accepted
3 The third hypothesis relationship quality significantly influence customer value Based on the PLS calculations result in Table 9 testing the third hypothesis about the
influence of relationship quality on customer value it is obtained the value of the estimated coefficient (β) of 0507 with t statistic value of 2383 This result is higher than t-table value which is only 196 So it can be concluded that there is a positive significant influence of the relationship quality variable on customer value Thus the third hypothesis is accepted Sobel Test Results
Sobel test is conducted by testing the strength of the indirect influence of independent variables (customer engagement) toward dependent variable (customer value) through intervening variable (relationship quality) This test is done by Online Sobel Test Calculator for the Significance of Mediation by entering the regression coefficient and standard error values of the customer engagement variables to the relationship quality and the regression coefficient and standard error values of the relationship quality variable to customer value in which it gets the result as follows
Figure 4
Sobel Test Results Sobel test shown in Figure 4 shows the Sobel test statistic value of 23797 with a one-
side significance value of 0009 because the significance value is lt005 therefore it can be said that the relationship quality is the intervening variable of the correlation of customer engagement and customer value
E DISCUSSION In this study Customer engagement positively influences relationship quality it means
that the better the customer engagement the better the relationship quality between the customer and the company By involving customers such as Inviting them to share about the things to improve the performance of the company or promote cooperation between companies and customers (share) inviting customers to know more about the company (learning) motivating customers to inform others about the companys products or services (advocating) motivating customers to promote products services of the company (socialization) and motivating customers to contribute ideas that might contribute to the improvement of performance and service of the companies (co-developing) then it will be able to create a good quality relationships between the companies and customers
1st Piksi International Conference on Knowledge and Sciences 2014 Page | 16
This is in line with the findings by Saks (2006) which states that the employee engagement has been implemented as a means to explore and explain the organizational commitment and behaviors of the members and also applied as a predictor of customer ratings toward the companies Furthermore the finding of the study is also in accordance with the opinion of Salanova et al (2005) that engagement has also been recognized as a way to improve morale cohesion and psychological relationship between the customer and the company or organization
The quality of a good relationship is manifested by the growth of customer trust the presence of customer commitment to always use the companys services and customer satisfaction with the overall service provided by the company
Customer engagement in this study positively contribute to customer value the better the company does customer engagement efforts it will contribute to higher customer value Involving customers such as inviting them to share about the things to improve the performance of the company or promote cooperation between companies and customers (share) inviting customers to know more about the company (learning) motivating the customer to inform others about product and service of companies (advocating) motivating customers to promote products services company (socialization) and motivating customers to contribute ideas to improve the performance and service companies (co-developing) will be able to create high customer value
The studys findings are in line with the study conducted by Li and Dant in Vivek (2011) which concludes that the intensity of customer engagement will be positively related to the value received by customers By the time customers are treated very well and considered as part of the company it will raise the principle of reciprocity in which the customer will give the good attitude as good as what they have received by the company (Bagozzidalam Vivek 2011)
Companies Interaction to customers via initiative engagement strategies will make the reciprocity norm appear to customersrsquo engagement If the company successfully engage customers customers will recognize the benefits received and give return values to indicate behavioral intentions In the return of value received customers will have a good faith and affective commitment to the organization and may be willing to develop a strong relationship with the organization
Moreover in this study relationship quality give positive influence on customer value The better relationship quality the better the customer value will be It means that relationship quality is one of the important factors to increase customer value Relationship quality is needed to drive steer cultivate and maintain customer behavior towards the achievement of better corporate performance
Relationship quality in this study also serves as a mediator of the influence of customer engagement toward customer value Customer value will be stronger with the role of relationship quality in it Starting from involving customers by sharing it will create a good relationship between the company and customers Then One of the good form of relationship is the emergence of self-confidence of the customers toward the the company Based on these good relationships created customers will give a positive assessment to the company by the form of manifesting customer awareness of the companys survival (affective commitment) which in this study seems to show the highest loading value of all indicators of customer value
Empirically findings of this study support the finding by John (2008) that concludes that the success in fostering good relationship with customers is actually a beneficial thing that can bring profit for both parties The relationship created between the company and the customer will make communication better
After feeling satisfied and having created a good relationship then the customers will tell the companyrsquos advantage to others The information spread by the customer can build a good image about the company and it can bring in new clients or customers for the companyBy a good relationship not only company but also customers will get profits and advantages Benefits and advantages gained by customers also vary eg special price given by the company and get extra service for being a loyal customer
F CONCLUSION Based on the analysis and discussion in this study it obtains a general conclusion as
follows
1st Piksi International Conference on Knowledge and Sciences 2014 Page | 17
1) Customer engagement have a positive significant influence on relationship quality It means that the better the customer engagement the better the relationship quality will be and the increased sharing programs between companies and customers is a way that can be used to improve customer engagement and gain trust of customers to be better 2) Customer engagement have a positive significant influence on customer value It means that the better the customer engagement the better the customer value will be and the improvement of sharing programs between companies and customers is a way that can be used to improve customer engagement and to establish customer awareness of the companiesrsquo survival company (affective commitment) And 3) Relationship quality have a positive significant influence on customer value it means that the better the relationship quality the better the customer value and establishing trust of the customer is a way to improve the quality of relationships and increase customer awareness of companies survival (affective commitment)
This study has limitations that is the study results can not be generalized beyond the sample of the study because the respondents used is only limited to customers of PT Siba Courier Indonesia representing Semarang and Jakarta city Thus to conduct similar study involving all customers of PT Siba Courier Indonesia spreading in many cities around Indonesia still need to be considered
BIBLIOGRAPHY Brodie JR Ilic A Hollebeek L 2011 Consumer engagement in a virtual brand community An
exploratory analysis Journal of Business Research xxx (2011) xxxndashxxx Cateora Philip R Graham John L 2007 Pemasaran Internasional 13th Edition Jakarta Salemba
Empat Chan S 2003 Relationship Marketing Inovasi Pemasaran yang Membuat Pelanggan Bertekuk
Lutut Jakarta Penerbit PT Gramedia Pustaka Utama Copulsky J R and M J Wolf 1990 Relationship Marketing Positioning for the Future The
Journal of Business Strategy Fandy Tjiptono 2005 Pemasaran Jasa 1st Edition Malang Bayu Media Publishing Fuad Masrsquoud 2004 Survai Diagnosis Organisasional Konsep dan Aplikasi Semarang Diponegoro
University Press Groumlnroos C 1994 ldquoFrom Marketing Mix to Relationship Marketing Towards a Paradigm Shift in
Marketingrdquo Management Decision Vol 32 No 2 pp 4-20 Hollebeek LD 2009 Demystifying Customer Engagement Toward the Development of a
Conceptual Model AMZNAC 2009 1-9 Imam Ghozali 2006 Structural Equation Modeling Metode Alternatif denganPLS (Kedua ed)
Semarang Diponegoro University Press Kotler Philip amp Keller Kevin Lane 2009 Manajemen Pemasaran Edisi 13 Jilid 2 Jakarta PT
Indeks Kotler Philip 2007 Manajemen Pemasaran Analisis Perencanaan Pengendalian Prentice Hall
Edisi Bahasa Indonesia Jakarta Salemba Empat Kumar V Lerzan A Bas D Rajkumar V Thorsten W dan Sebastian T 2010 Undervalued or
Overvalued Customers Capturing Total Customer engagement Value Journal of Service Research 13(3) 297-310
MacInnis dan Mello Jefrey A 2001 StrategicHuman Resources Management International Edition South Western Publishing Ohio
Mowen John C dan Minor M 2002 Perilaku Konsumen Jilid 1 Edisi Kelima (terjemahan) Jakarta Erlangga
Nammir Darman Sulaiman Sadiq Bayar Mohamed Rasheed Marane Aree Mohammed Ali 2012 Determine the Role of Customer engagement on Relationship Quality and Relationship Performance European Journal of Business and Management wwwiisteorgISSN 2222-1905 (Paper) ISSN 2222-2839 (Online) Vol 4 No11 2012
Peter Paul J and Olson Jerry C 2002Perilaku Konsumen dan StrategiPemasaran Edisi ke Empat (Terjemahan) Jakarta Penerbit Erlangga
1st Piksi International Conference on Knowledge and Sciences 2014 Page | 18
Rustono 2010 Faktor-faktor yang Mempengaruhi Implementasi Customer Relationship Mangement (CRM) untuk Meningkatkan Loyalitas PelangganRagamJurnal Pengembangan Humaniora Vol 10 No 3 Desember 2010 153-160
Ryals L and S Knox 2001 ldquoCross-Functional Issue in the Implementation of Relationship Marketing Through Customer relationship Managementrdquo European Management Journal Vol 19 No 5 pp 534-542
Setiadi J Nugroho 2005 Perilaku Konsumen Jakarta Kencana Sugiyono 2008 Metode Penelitian Kuantitatif Kualitatif dan RampD Bandung Alfabeta Tjahyadi RA 2010Membangun Hubungan Jangka Panjang Pelanggan Melalui Relationship
Marketing httpmajourmaranathaeduindexphpjurnal-manajemenarticleview178 Vivek SD 2011 A Scale Of Consumer Engagement Disertasi Department of Management and
Marketing in the Graduate School of The University of Alabama Yahya Y 2008 Pengaruh Customer Relationship Management (CRM) dalam Meningkatkan loyalitas
Pelanggan httpfebudiluhuracidwp-contentuploads201105Pengaruh-Customer-Relationship-Management-Dalam-Meningkatka-Loyalitas-Pelanggan-Yohanes-Yahyapdf
- -
(0)
I~ 1 PICKS 2014 Committee ISSN 2407 ~ l722 ~ POLITEKNIK PIKSI GANESHA Gedung Rektoratmiddotmiddot Kampus 1 JI jend Gatot Stibroto No 301 Bandung 40274 9171111~JJ
Published by LPPM Pollteknlk Piksi GaneshO
-Batidung lndonesIClmiddot
1st Piksi International Conference on Knowledge and Sciences 2014 Page | 10
A INTRODUCTION Nowadays Challenges in the business field have become increasingly tight and
complicated because the presence of dynamical complexities in the market values in which the needs and demands of customers as main stakeholders have changed massively The change of customers condition in demand occur because the presences of information and choices have grown rapidly Not only self-needs experiencing a change but also the ways customers access the needs also change from time to time In the past customer satisfactions were mostly determined by the quality of productsservices pricing and after-sales service Briefly its only three aspects that got too much attention marketers only focused in improving the quality of products pressing price efficiency to be affordable and opening outlets of after sales service Yet in the present day these aspects are considered not meet expectations customers want more of these aspects as a prerequisite for their satisfaction In conclusion it means that the needs of customers expectations has changed so that the programs and approaches to satisfy customers should also be conducted (Rustono 2010)
The phenomena as mentioned above also occur in courier Industries The rapid competition of courier industries in Indonesia is not only caused by globalization but also customers awareness of price and high demands The rapid growth of communication and technology also contribute to the increase of competition intensity since it gives customers access to more information about the wide range of products or services offered These conditions lead customers to have more choices in spending their money
The added value of the company at this time can not always be built only through customer satisfaction but also more to other factors such as communication coaching and sharing of the company as stated in the customer engagement Customer engagement is the peak of the companys relationship with customers to survive and thrive to launch new products to pay more attention into competitor products to sell more products from competitors Besides that the companies also have to implement Customer Relationship Management whereby customer engagement is one of its components At the level of customer engagement relationship built has already been a combination of rational and emotional aspects The quality of this relationship has reached the level of the inner closeness and long-term dimension (Shevlin 2011 in Vivek 2011)
The concept of customer engagement has also been frequently considered as a potential superior strength to predict and to explain the context of the service retention and customer loyalty (Bowden 2009 in Hollebeek 2009) Furthermore Customer engagement is a promising new concept and expected to exceed the contribution given by traditional relational construction including perceived quality customer engagement and satisfaction in explaining and predicting customer value (Hollebeek 2009) Customer value is defined as the emotional bond that exists between customers and manufacturers because the customers use the products and services of the company and then find that the product or service give them additional value (Tjiptono 2005)
The study by Hollebeek (2009) concludes that the customers engagement improve loyalty satisfaction empowerment connection emotional bonding trust and commitment Furthermore Kumar et al (2010) emphasizes that customers can be involved in creating value for the company in various ways first the customer lifetime value (customer buying behavior) second the customer referrals value (related to referral incentives of new customers) third customer influence value (related to customers behavior to influence other customers which increases the acquisition retention and share of wallet through communication among customers and existing prospects) and fourth is the customer knowledge value (surplus for the company with feedback from customers) Customer engagemet value (CEV) provides a comprehensive framework that can ultimately lead to more efficient marketing strategies that enable a higher long-term contribution to customers The study by Vivek (2011) proves that customers engagement in turn can positively influence the companys relationship with customers and raises good faith and intention to do business with the company
The capability of Customer engagement in predicting customer value has been adopted as a marketing strategy by PT Siba Courier Indonesia This strategy is implemented because until this time if it is compared with its competitors PT Siba Courier Indonesia is far behind from their competitors in terms of the availability of fleet infrastructure and age In the future PT Siba Courier Indonesia is predicted to be abandoned by its customers if only rely on the availability of
1st Piksi International Conference on Knowledge and Sciences 2014 Page | 11
limited facilities and infrastructure The fact that the customers of PT Siba Courier Indonesia both in Jakarta and Semarang are still loyal to use the services of this company and even if they keep patient waiting queue to obtain service because the company have overload in order delivery If in general to improve the competitiveness and to maintain the survival of the company efforts are made through internal factors (improvement of service quality provision of infrastructure and facilities services technological advances etc) in this study exactly at PT Siba Courier Indonesia the related cases are not found Therefore it is interesting to do a more focused study on the role of dynamic models of customer engagement toward customer value in the PT Siba Courier Indonesia
B LITERATURE REVIEW
Customer Engagement Customer engagement (CE) is the intensity of customer participation by representatives
of the organization and through other customers in the process of collaborative knowledge exchange (Wagner and Majchrzak 200720) in Vivek (2011) Engagement refers to customersrsquo perception toward the importance or personal relevance of objects events and activities In this case Customers will acquire that a certain product has a personal relevance and relationship with them Relationship quality
The relationship quality or connections is represented through real-image of relationship and individual experience of each party in the relationship A subjective connection is obtained through positive passion energy matter and togetherness (Quinn and Dutton 2005 Heaphy amp Dutton 2008 in Vivek 2011) in which Two people involved in the connection and active participation (Heaphy and Dutton Vivek 2008267 in 2011)
In this study connection is defined as a positive emotional relationship that customers have a sense of belonging to the companies The quality of relationship construction is based on the amount of time spent in the workplace employees are significantly influenced by their relationships formed in the workplace so the connection significantly influences the function of the organization Customer value
The concept of customer value (CV) by Kotler and Keller (2009 14) is the combination of quality service price of products or services Furthermore Customer value is the dispute between the amount of value for customers and the total cost of customers and the amount of value for customers are customers expected profit of certain goods or services
According to Best in (Sumarwan et al 2010 30) the customer value is a benefit or profit obtained by customers lessened by the cost of the purchase Based on this concept customer value is derived from the economic customer and emotional benefits Economic Benefit is obtained from surplus of price and cost but not the cost of purchase which includes acquisition ownership usage maintenance repairment and disposal costs Customers Benefit is derived from the product appearance service and reputation Emotional Benefit is the overplus of the product to meet the emotional needs of the customer associated with psychological needs types of customers personality and customer personal value
C RESEARCH METHOD
The population of this study is all customers of PT Siba Courier Indonesia totaling 40 companies spread over two cities Semarang and Jakarta Because of limited number of population the total population is all designated as sample or census research Moreover it is also with the consideration that using total population as a sample will get a more representative description and minimize the error rates so that the data obtained will be close the real value The sample proposed is the companies which at least for three years have actively used services of PT Siba Courier Indonesia Then from each company it is selected two people from the owner and the manager or the other person who has the authority to make decision (the decision maker)
The data collection method is purposive sampling and the analysis techniques is performed by Partial Least Square and Sobel Test
Table 1
1st Piksi International Conference on Knowledge and Sciences 2014 Page | 12
Research Variables and Indicators No Variables Indicators Shape
1 Customer engagement is the level of customers attention to the company
Sharing (CE1)
Likert Scale 1-5
Learning (CE2) Advocating (CE3) Socialization (CE4) Co-developing (CE5)
2 Relationship quality is quality of the relationship created between customer and companies
Trust (RQ1) Commitment (RQ2) Satisfaction (RQ3)
3
Customer value is the matched value perceived by customers on the services prices of the products quality received by them
Connection with Company (CV1) Goodwill (CV2) Word of Mouth (CV3) Affective Commitment (CV4) Intent to do Business (CV5)
Data Analysis
PLS (Partial Least Square) is used to examine and test the hypothesis proposed PLS has advantages that lsquoit involves no assumptions about the population or scale of measurement (Fornell amp Bookstein 1982) and consequently it works without distributional assumptions and by nominal ordinal and interval scaled variables However one has to bear in mind that the PLS like any statistical technique also requires certain assumptions to be fulfilled Apart from the standard ones (ie the classical Gaussian linear ordinary least squares) regression models (see eg Gujarati 1995) the most important predictor of the assumption is the specification (Chin amp Newsted 1999)
D FINDINGS Based on data analysis of the study it can be explained the analysis of partial least
squares (PLS) as follows Inner PLS model results
The indicators of customer engagement consist of sharing (CE1) learning (CE2) advocating (CE3) socialization (CE4) and co-developing (CE5) The outline of the PLS model for the indicators proposed is shown in Table 2
Table 2 Test Results of Validity and Reliability of Customer Engagement Indicator Variables
No Indicator Test Validity Composite Reliability Loading T-Statistic Criteria
1 CE 1 0919 9438 valid
0876 2 CE 2 0753 5330 valid 3 CE 3 0711 4915 valid 4 CE 4 0851 7639 valid 5 CE 5 0854 6314 valid
Sources Primary data processed in 2014
Table 2 is the result of convergent validity test 5 indicators of customer engagement have loading factor value more than 05 by the T statistical value of all indicators greater than T Table by 196 so that all indicators of customer engagement can be said to be valid The order of the strongest to the weakest indicator is CE1 (sharing) CE5 (co-developing) CE4
1st Piksi International Conference on Knowledge and Sciences 2014 Page | 13
(socialization) CE2 (learning) and CE3 (advocating) Based on the composite reliability test of indicator measuring the construct it shows a satisfactory results in the amount of 0876 meaning that the construct of customer engagement can provide relatively similar results when it is measured again by the same subjects
The indicator of Relationship quality consists of three indicators namely trust (RQ1) commitment (RQ2) and satisfaction (RQ3) The results of the PLS model for the outer indicators is shown in Table 3 below
Table 3
Test Results of Validity and Reliability of Relationship Quality Indicator Variables
No Indicator Test Validity Composite Reliability Loading T-Statistic Criteria
1 RQ1 0822 4959 valid 0731 2 RQ2 0812 5508 valid
3 RQ3 0785 5318 valid
Sources Primary data were processed in 2014
Table 3 is the result of convergent validity test 3 indicators of relationship quality has a loading factor values more than 05 and the value of the T statistic is higher than the T table by 196 so that all indicators of relationship quality can be said to be valid The order of the strongest to the weakest indicator is RQ1 RQ2 and RQ3 Based on the composite reliability test of the indicators measuring construction it showes a satisfactory results in the amount of 0731 meaning that the relationship quality constructs can provide relatively similar results if it is measured again by the same subjects
The indicator of Customer value consists of 5 indicators the connection with the commpany (CV1) goodwill (CV2) word of mouth (CV3) affective commitment (CV4) and intent to do business (CV5) The result of outer model is in Table 4
Table 4 Test Results of Validity and Reliability of Customer value Indicator Variables
No Indicator Test Validity Composite Reliability Loading T-Statistic Criteria
1 CV1 0 815 9 382 valid
0860 2 CV2 0 752 6 211 valid 3 CV3 0 712 4 022 valid 4 CV4 0 886 7 349 valid 5 CV5 0 837 7 649 valid
Table 4 is the result of convergent validity test 5 indicators of customer value has a
loading factor value more than 05 and the value of statistical Tgt T Table by 196 so that all indicators of customer value can be said to be valid The order of the strongest to the weakest indicator is CV4 CV5 CV1 CV2 and CV3 Based on the composite reliability test of indicators measuring the block construct it shows a satisfactory results in the amount of 0860 meaning that the construct of customer value can provide relatively similar results if it is measured again by the same subjects Inner PLS model results
Inner models describes the relationship among latent variables based on substantive theory The results of the bootstrapping output graphs display the relationship among variables such as customer engagement relationship quality and customer value as shown in Figure 2
1st Piksi International Conference on Knowledge and Sciences 2014 Page | 14
Based on calculations in Figure 2 It is known that the direct influence of customer engagement on customer value is equal to 0491 with the indirect influence of 0984 x 0507 = 0499 It means that the indirect influence is higher than the direct Thus the relationship quality variable is the path of the relationship between the customer engagement and customer value Briefly it means that customer engagement can directly improve customer value by trying to increase the relationship quality first
Sources Primary data processed 2014 Figure 1
The relationship Model between the Customer Engagement Relationship quality and Customer value of PT Siba Courier Indonesia
Figure 1 also shows the magnitude of the determination coefficient The coefficient of determination is used to recognize how significant the influence of exogenous variables toward endogenous the higher the value of the coefficient of determination the higher the influence of exogenous variables on endogenous will be R-square value generated from the relationship between customer engagement with the relationship quality is 0969 meaning that the variation of relationship quality which can be explained by customer engagement is 969 while the remaining 31 is obtained from other variables Then R-square value of the relationship model between customer engagement relationship quality and customer value is 0988 it means that the variation of customer value that can be explained by the relationship quality and customer engagement is 988 while the remaining 12 are determined by other variables
Then the hypothesis test is performed by looking at the value of t count if tcount is higher than ttable (alpha 5 = 196) then the alternative hypothesis (H a) is accepted and H 0 is rejected and so that for the opposite Based on the PLS test the results of testing the relationship among variables can be seen in Table 9 and Figure 3
Table 5 Results of Inner Weight
No The relationship among variables Original Sample (O) T Statistics (| O Sterr |) Criteria
1 CE -gt CV 0491 2312 Significant 2 CE -gt RQ 0984 110053 Significant 3 RQ -gt CV 0507 2383 Significant
Sources Primary data processed 2014
1st Piksi International Conference on Knowledge and Sciences 2014 Page | 15
1 The first hypothesis the customer engagement significantly influences the relationship quality Based on the PLS calculations result in Table 8 testing the first hypothesis about the
influence of customer engagement on relationship quality it is obtained the value of the estimated coefficient (β) of 0984 with t statistic value of 110053 This result is much higher than t-table value which is only 196 Then it can be concluded that there is a positive significant influence on the customer engagement variable toward the relationship quality Thus the first hypothesis is accepted
2 The second hypothesis the customer engagement significantly influences the customer value Based on the PLS calculations result in Table 9 testing the second hypothesis about the
influence of customer engagement toward customer value it is obtained the value of the estimated coefficient (β) of 0491 with t statistic value of 2312 This result is higher than t-table value which is only 196 So it can be concluded that there is a positive significant influence of the customer engagement variable toward customer value Thus the second hypothesis is accepted
3 The third hypothesis relationship quality significantly influence customer value Based on the PLS calculations result in Table 9 testing the third hypothesis about the
influence of relationship quality on customer value it is obtained the value of the estimated coefficient (β) of 0507 with t statistic value of 2383 This result is higher than t-table value which is only 196 So it can be concluded that there is a positive significant influence of the relationship quality variable on customer value Thus the third hypothesis is accepted Sobel Test Results
Sobel test is conducted by testing the strength of the indirect influence of independent variables (customer engagement) toward dependent variable (customer value) through intervening variable (relationship quality) This test is done by Online Sobel Test Calculator for the Significance of Mediation by entering the regression coefficient and standard error values of the customer engagement variables to the relationship quality and the regression coefficient and standard error values of the relationship quality variable to customer value in which it gets the result as follows
Figure 4
Sobel Test Results Sobel test shown in Figure 4 shows the Sobel test statistic value of 23797 with a one-
side significance value of 0009 because the significance value is lt005 therefore it can be said that the relationship quality is the intervening variable of the correlation of customer engagement and customer value
E DISCUSSION In this study Customer engagement positively influences relationship quality it means
that the better the customer engagement the better the relationship quality between the customer and the company By involving customers such as Inviting them to share about the things to improve the performance of the company or promote cooperation between companies and customers (share) inviting customers to know more about the company (learning) motivating customers to inform others about the companys products or services (advocating) motivating customers to promote products services of the company (socialization) and motivating customers to contribute ideas that might contribute to the improvement of performance and service of the companies (co-developing) then it will be able to create a good quality relationships between the companies and customers
1st Piksi International Conference on Knowledge and Sciences 2014 Page | 16
This is in line with the findings by Saks (2006) which states that the employee engagement has been implemented as a means to explore and explain the organizational commitment and behaviors of the members and also applied as a predictor of customer ratings toward the companies Furthermore the finding of the study is also in accordance with the opinion of Salanova et al (2005) that engagement has also been recognized as a way to improve morale cohesion and psychological relationship between the customer and the company or organization
The quality of a good relationship is manifested by the growth of customer trust the presence of customer commitment to always use the companys services and customer satisfaction with the overall service provided by the company
Customer engagement in this study positively contribute to customer value the better the company does customer engagement efforts it will contribute to higher customer value Involving customers such as inviting them to share about the things to improve the performance of the company or promote cooperation between companies and customers (share) inviting customers to know more about the company (learning) motivating the customer to inform others about product and service of companies (advocating) motivating customers to promote products services company (socialization) and motivating customers to contribute ideas to improve the performance and service companies (co-developing) will be able to create high customer value
The studys findings are in line with the study conducted by Li and Dant in Vivek (2011) which concludes that the intensity of customer engagement will be positively related to the value received by customers By the time customers are treated very well and considered as part of the company it will raise the principle of reciprocity in which the customer will give the good attitude as good as what they have received by the company (Bagozzidalam Vivek 2011)
Companies Interaction to customers via initiative engagement strategies will make the reciprocity norm appear to customersrsquo engagement If the company successfully engage customers customers will recognize the benefits received and give return values to indicate behavioral intentions In the return of value received customers will have a good faith and affective commitment to the organization and may be willing to develop a strong relationship with the organization
Moreover in this study relationship quality give positive influence on customer value The better relationship quality the better the customer value will be It means that relationship quality is one of the important factors to increase customer value Relationship quality is needed to drive steer cultivate and maintain customer behavior towards the achievement of better corporate performance
Relationship quality in this study also serves as a mediator of the influence of customer engagement toward customer value Customer value will be stronger with the role of relationship quality in it Starting from involving customers by sharing it will create a good relationship between the company and customers Then One of the good form of relationship is the emergence of self-confidence of the customers toward the the company Based on these good relationships created customers will give a positive assessment to the company by the form of manifesting customer awareness of the companys survival (affective commitment) which in this study seems to show the highest loading value of all indicators of customer value
Empirically findings of this study support the finding by John (2008) that concludes that the success in fostering good relationship with customers is actually a beneficial thing that can bring profit for both parties The relationship created between the company and the customer will make communication better
After feeling satisfied and having created a good relationship then the customers will tell the companyrsquos advantage to others The information spread by the customer can build a good image about the company and it can bring in new clients or customers for the companyBy a good relationship not only company but also customers will get profits and advantages Benefits and advantages gained by customers also vary eg special price given by the company and get extra service for being a loyal customer
F CONCLUSION Based on the analysis and discussion in this study it obtains a general conclusion as
follows
1st Piksi International Conference on Knowledge and Sciences 2014 Page | 17
1) Customer engagement have a positive significant influence on relationship quality It means that the better the customer engagement the better the relationship quality will be and the increased sharing programs between companies and customers is a way that can be used to improve customer engagement and gain trust of customers to be better 2) Customer engagement have a positive significant influence on customer value It means that the better the customer engagement the better the customer value will be and the improvement of sharing programs between companies and customers is a way that can be used to improve customer engagement and to establish customer awareness of the companiesrsquo survival company (affective commitment) And 3) Relationship quality have a positive significant influence on customer value it means that the better the relationship quality the better the customer value and establishing trust of the customer is a way to improve the quality of relationships and increase customer awareness of companies survival (affective commitment)
This study has limitations that is the study results can not be generalized beyond the sample of the study because the respondents used is only limited to customers of PT Siba Courier Indonesia representing Semarang and Jakarta city Thus to conduct similar study involving all customers of PT Siba Courier Indonesia spreading in many cities around Indonesia still need to be considered
BIBLIOGRAPHY Brodie JR Ilic A Hollebeek L 2011 Consumer engagement in a virtual brand community An
exploratory analysis Journal of Business Research xxx (2011) xxxndashxxx Cateora Philip R Graham John L 2007 Pemasaran Internasional 13th Edition Jakarta Salemba
Empat Chan S 2003 Relationship Marketing Inovasi Pemasaran yang Membuat Pelanggan Bertekuk
Lutut Jakarta Penerbit PT Gramedia Pustaka Utama Copulsky J R and M J Wolf 1990 Relationship Marketing Positioning for the Future The
Journal of Business Strategy Fandy Tjiptono 2005 Pemasaran Jasa 1st Edition Malang Bayu Media Publishing Fuad Masrsquoud 2004 Survai Diagnosis Organisasional Konsep dan Aplikasi Semarang Diponegoro
University Press Groumlnroos C 1994 ldquoFrom Marketing Mix to Relationship Marketing Towards a Paradigm Shift in
Marketingrdquo Management Decision Vol 32 No 2 pp 4-20 Hollebeek LD 2009 Demystifying Customer Engagement Toward the Development of a
Conceptual Model AMZNAC 2009 1-9 Imam Ghozali 2006 Structural Equation Modeling Metode Alternatif denganPLS (Kedua ed)
Semarang Diponegoro University Press Kotler Philip amp Keller Kevin Lane 2009 Manajemen Pemasaran Edisi 13 Jilid 2 Jakarta PT
Indeks Kotler Philip 2007 Manajemen Pemasaran Analisis Perencanaan Pengendalian Prentice Hall
Edisi Bahasa Indonesia Jakarta Salemba Empat Kumar V Lerzan A Bas D Rajkumar V Thorsten W dan Sebastian T 2010 Undervalued or
Overvalued Customers Capturing Total Customer engagement Value Journal of Service Research 13(3) 297-310
MacInnis dan Mello Jefrey A 2001 StrategicHuman Resources Management International Edition South Western Publishing Ohio
Mowen John C dan Minor M 2002 Perilaku Konsumen Jilid 1 Edisi Kelima (terjemahan) Jakarta Erlangga
Nammir Darman Sulaiman Sadiq Bayar Mohamed Rasheed Marane Aree Mohammed Ali 2012 Determine the Role of Customer engagement on Relationship Quality and Relationship Performance European Journal of Business and Management wwwiisteorgISSN 2222-1905 (Paper) ISSN 2222-2839 (Online) Vol 4 No11 2012
Peter Paul J and Olson Jerry C 2002Perilaku Konsumen dan StrategiPemasaran Edisi ke Empat (Terjemahan) Jakarta Penerbit Erlangga
1st Piksi International Conference on Knowledge and Sciences 2014 Page | 18
Rustono 2010 Faktor-faktor yang Mempengaruhi Implementasi Customer Relationship Mangement (CRM) untuk Meningkatkan Loyalitas PelangganRagamJurnal Pengembangan Humaniora Vol 10 No 3 Desember 2010 153-160
Ryals L and S Knox 2001 ldquoCross-Functional Issue in the Implementation of Relationship Marketing Through Customer relationship Managementrdquo European Management Journal Vol 19 No 5 pp 534-542
Setiadi J Nugroho 2005 Perilaku Konsumen Jakarta Kencana Sugiyono 2008 Metode Penelitian Kuantitatif Kualitatif dan RampD Bandung Alfabeta Tjahyadi RA 2010Membangun Hubungan Jangka Panjang Pelanggan Melalui Relationship
Marketing httpmajourmaranathaeduindexphpjurnal-manajemenarticleview178 Vivek SD 2011 A Scale Of Consumer Engagement Disertasi Department of Management and
Marketing in the Graduate School of The University of Alabama Yahya Y 2008 Pengaruh Customer Relationship Management (CRM) dalam Meningkatkan loyalitas
Pelanggan httpfebudiluhuracidwp-contentuploads201105Pengaruh-Customer-Relationship-Management-Dalam-Meningkatka-Loyalitas-Pelanggan-Yohanes-Yahyapdf
- -
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I~ 1 PICKS 2014 Committee ISSN 2407 ~ l722 ~ POLITEKNIK PIKSI GANESHA Gedung Rektoratmiddotmiddot Kampus 1 JI jend Gatot Stibroto No 301 Bandung 40274 9171111~JJ
Published by LPPM Pollteknlk Piksi GaneshO
-Batidung lndonesIClmiddot
1st Piksi International Conference on Knowledge and Sciences 2014 Page | 11
limited facilities and infrastructure The fact that the customers of PT Siba Courier Indonesia both in Jakarta and Semarang are still loyal to use the services of this company and even if they keep patient waiting queue to obtain service because the company have overload in order delivery If in general to improve the competitiveness and to maintain the survival of the company efforts are made through internal factors (improvement of service quality provision of infrastructure and facilities services technological advances etc) in this study exactly at PT Siba Courier Indonesia the related cases are not found Therefore it is interesting to do a more focused study on the role of dynamic models of customer engagement toward customer value in the PT Siba Courier Indonesia
B LITERATURE REVIEW
Customer Engagement Customer engagement (CE) is the intensity of customer participation by representatives
of the organization and through other customers in the process of collaborative knowledge exchange (Wagner and Majchrzak 200720) in Vivek (2011) Engagement refers to customersrsquo perception toward the importance or personal relevance of objects events and activities In this case Customers will acquire that a certain product has a personal relevance and relationship with them Relationship quality
The relationship quality or connections is represented through real-image of relationship and individual experience of each party in the relationship A subjective connection is obtained through positive passion energy matter and togetherness (Quinn and Dutton 2005 Heaphy amp Dutton 2008 in Vivek 2011) in which Two people involved in the connection and active participation (Heaphy and Dutton Vivek 2008267 in 2011)
In this study connection is defined as a positive emotional relationship that customers have a sense of belonging to the companies The quality of relationship construction is based on the amount of time spent in the workplace employees are significantly influenced by their relationships formed in the workplace so the connection significantly influences the function of the organization Customer value
The concept of customer value (CV) by Kotler and Keller (2009 14) is the combination of quality service price of products or services Furthermore Customer value is the dispute between the amount of value for customers and the total cost of customers and the amount of value for customers are customers expected profit of certain goods or services
According to Best in (Sumarwan et al 2010 30) the customer value is a benefit or profit obtained by customers lessened by the cost of the purchase Based on this concept customer value is derived from the economic customer and emotional benefits Economic Benefit is obtained from surplus of price and cost but not the cost of purchase which includes acquisition ownership usage maintenance repairment and disposal costs Customers Benefit is derived from the product appearance service and reputation Emotional Benefit is the overplus of the product to meet the emotional needs of the customer associated with psychological needs types of customers personality and customer personal value
C RESEARCH METHOD
The population of this study is all customers of PT Siba Courier Indonesia totaling 40 companies spread over two cities Semarang and Jakarta Because of limited number of population the total population is all designated as sample or census research Moreover it is also with the consideration that using total population as a sample will get a more representative description and minimize the error rates so that the data obtained will be close the real value The sample proposed is the companies which at least for three years have actively used services of PT Siba Courier Indonesia Then from each company it is selected two people from the owner and the manager or the other person who has the authority to make decision (the decision maker)
The data collection method is purposive sampling and the analysis techniques is performed by Partial Least Square and Sobel Test
Table 1
1st Piksi International Conference on Knowledge and Sciences 2014 Page | 12
Research Variables and Indicators No Variables Indicators Shape
1 Customer engagement is the level of customers attention to the company
Sharing (CE1)
Likert Scale 1-5
Learning (CE2) Advocating (CE3) Socialization (CE4) Co-developing (CE5)
2 Relationship quality is quality of the relationship created between customer and companies
Trust (RQ1) Commitment (RQ2) Satisfaction (RQ3)
3
Customer value is the matched value perceived by customers on the services prices of the products quality received by them
Connection with Company (CV1) Goodwill (CV2) Word of Mouth (CV3) Affective Commitment (CV4) Intent to do Business (CV5)
Data Analysis
PLS (Partial Least Square) is used to examine and test the hypothesis proposed PLS has advantages that lsquoit involves no assumptions about the population or scale of measurement (Fornell amp Bookstein 1982) and consequently it works without distributional assumptions and by nominal ordinal and interval scaled variables However one has to bear in mind that the PLS like any statistical technique also requires certain assumptions to be fulfilled Apart from the standard ones (ie the classical Gaussian linear ordinary least squares) regression models (see eg Gujarati 1995) the most important predictor of the assumption is the specification (Chin amp Newsted 1999)
D FINDINGS Based on data analysis of the study it can be explained the analysis of partial least
squares (PLS) as follows Inner PLS model results
The indicators of customer engagement consist of sharing (CE1) learning (CE2) advocating (CE3) socialization (CE4) and co-developing (CE5) The outline of the PLS model for the indicators proposed is shown in Table 2
Table 2 Test Results of Validity and Reliability of Customer Engagement Indicator Variables
No Indicator Test Validity Composite Reliability Loading T-Statistic Criteria
1 CE 1 0919 9438 valid
0876 2 CE 2 0753 5330 valid 3 CE 3 0711 4915 valid 4 CE 4 0851 7639 valid 5 CE 5 0854 6314 valid
Sources Primary data processed in 2014
Table 2 is the result of convergent validity test 5 indicators of customer engagement have loading factor value more than 05 by the T statistical value of all indicators greater than T Table by 196 so that all indicators of customer engagement can be said to be valid The order of the strongest to the weakest indicator is CE1 (sharing) CE5 (co-developing) CE4
1st Piksi International Conference on Knowledge and Sciences 2014 Page | 13
(socialization) CE2 (learning) and CE3 (advocating) Based on the composite reliability test of indicator measuring the construct it shows a satisfactory results in the amount of 0876 meaning that the construct of customer engagement can provide relatively similar results when it is measured again by the same subjects
The indicator of Relationship quality consists of three indicators namely trust (RQ1) commitment (RQ2) and satisfaction (RQ3) The results of the PLS model for the outer indicators is shown in Table 3 below
Table 3
Test Results of Validity and Reliability of Relationship Quality Indicator Variables
No Indicator Test Validity Composite Reliability Loading T-Statistic Criteria
1 RQ1 0822 4959 valid 0731 2 RQ2 0812 5508 valid
3 RQ3 0785 5318 valid
Sources Primary data were processed in 2014
Table 3 is the result of convergent validity test 3 indicators of relationship quality has a loading factor values more than 05 and the value of the T statistic is higher than the T table by 196 so that all indicators of relationship quality can be said to be valid The order of the strongest to the weakest indicator is RQ1 RQ2 and RQ3 Based on the composite reliability test of the indicators measuring construction it showes a satisfactory results in the amount of 0731 meaning that the relationship quality constructs can provide relatively similar results if it is measured again by the same subjects
The indicator of Customer value consists of 5 indicators the connection with the commpany (CV1) goodwill (CV2) word of mouth (CV3) affective commitment (CV4) and intent to do business (CV5) The result of outer model is in Table 4
Table 4 Test Results of Validity and Reliability of Customer value Indicator Variables
No Indicator Test Validity Composite Reliability Loading T-Statistic Criteria
1 CV1 0 815 9 382 valid
0860 2 CV2 0 752 6 211 valid 3 CV3 0 712 4 022 valid 4 CV4 0 886 7 349 valid 5 CV5 0 837 7 649 valid
Table 4 is the result of convergent validity test 5 indicators of customer value has a
loading factor value more than 05 and the value of statistical Tgt T Table by 196 so that all indicators of customer value can be said to be valid The order of the strongest to the weakest indicator is CV4 CV5 CV1 CV2 and CV3 Based on the composite reliability test of indicators measuring the block construct it shows a satisfactory results in the amount of 0860 meaning that the construct of customer value can provide relatively similar results if it is measured again by the same subjects Inner PLS model results
Inner models describes the relationship among latent variables based on substantive theory The results of the bootstrapping output graphs display the relationship among variables such as customer engagement relationship quality and customer value as shown in Figure 2
1st Piksi International Conference on Knowledge and Sciences 2014 Page | 14
Based on calculations in Figure 2 It is known that the direct influence of customer engagement on customer value is equal to 0491 with the indirect influence of 0984 x 0507 = 0499 It means that the indirect influence is higher than the direct Thus the relationship quality variable is the path of the relationship between the customer engagement and customer value Briefly it means that customer engagement can directly improve customer value by trying to increase the relationship quality first
Sources Primary data processed 2014 Figure 1
The relationship Model between the Customer Engagement Relationship quality and Customer value of PT Siba Courier Indonesia
Figure 1 also shows the magnitude of the determination coefficient The coefficient of determination is used to recognize how significant the influence of exogenous variables toward endogenous the higher the value of the coefficient of determination the higher the influence of exogenous variables on endogenous will be R-square value generated from the relationship between customer engagement with the relationship quality is 0969 meaning that the variation of relationship quality which can be explained by customer engagement is 969 while the remaining 31 is obtained from other variables Then R-square value of the relationship model between customer engagement relationship quality and customer value is 0988 it means that the variation of customer value that can be explained by the relationship quality and customer engagement is 988 while the remaining 12 are determined by other variables
Then the hypothesis test is performed by looking at the value of t count if tcount is higher than ttable (alpha 5 = 196) then the alternative hypothesis (H a) is accepted and H 0 is rejected and so that for the opposite Based on the PLS test the results of testing the relationship among variables can be seen in Table 9 and Figure 3
Table 5 Results of Inner Weight
No The relationship among variables Original Sample (O) T Statistics (| O Sterr |) Criteria
1 CE -gt CV 0491 2312 Significant 2 CE -gt RQ 0984 110053 Significant 3 RQ -gt CV 0507 2383 Significant
Sources Primary data processed 2014
1st Piksi International Conference on Knowledge and Sciences 2014 Page | 15
1 The first hypothesis the customer engagement significantly influences the relationship quality Based on the PLS calculations result in Table 8 testing the first hypothesis about the
influence of customer engagement on relationship quality it is obtained the value of the estimated coefficient (β) of 0984 with t statistic value of 110053 This result is much higher than t-table value which is only 196 Then it can be concluded that there is a positive significant influence on the customer engagement variable toward the relationship quality Thus the first hypothesis is accepted
2 The second hypothesis the customer engagement significantly influences the customer value Based on the PLS calculations result in Table 9 testing the second hypothesis about the
influence of customer engagement toward customer value it is obtained the value of the estimated coefficient (β) of 0491 with t statistic value of 2312 This result is higher than t-table value which is only 196 So it can be concluded that there is a positive significant influence of the customer engagement variable toward customer value Thus the second hypothesis is accepted
3 The third hypothesis relationship quality significantly influence customer value Based on the PLS calculations result in Table 9 testing the third hypothesis about the
influence of relationship quality on customer value it is obtained the value of the estimated coefficient (β) of 0507 with t statistic value of 2383 This result is higher than t-table value which is only 196 So it can be concluded that there is a positive significant influence of the relationship quality variable on customer value Thus the third hypothesis is accepted Sobel Test Results
Sobel test is conducted by testing the strength of the indirect influence of independent variables (customer engagement) toward dependent variable (customer value) through intervening variable (relationship quality) This test is done by Online Sobel Test Calculator for the Significance of Mediation by entering the regression coefficient and standard error values of the customer engagement variables to the relationship quality and the regression coefficient and standard error values of the relationship quality variable to customer value in which it gets the result as follows
Figure 4
Sobel Test Results Sobel test shown in Figure 4 shows the Sobel test statistic value of 23797 with a one-
side significance value of 0009 because the significance value is lt005 therefore it can be said that the relationship quality is the intervening variable of the correlation of customer engagement and customer value
E DISCUSSION In this study Customer engagement positively influences relationship quality it means
that the better the customer engagement the better the relationship quality between the customer and the company By involving customers such as Inviting them to share about the things to improve the performance of the company or promote cooperation between companies and customers (share) inviting customers to know more about the company (learning) motivating customers to inform others about the companys products or services (advocating) motivating customers to promote products services of the company (socialization) and motivating customers to contribute ideas that might contribute to the improvement of performance and service of the companies (co-developing) then it will be able to create a good quality relationships between the companies and customers
1st Piksi International Conference on Knowledge and Sciences 2014 Page | 16
This is in line with the findings by Saks (2006) which states that the employee engagement has been implemented as a means to explore and explain the organizational commitment and behaviors of the members and also applied as a predictor of customer ratings toward the companies Furthermore the finding of the study is also in accordance with the opinion of Salanova et al (2005) that engagement has also been recognized as a way to improve morale cohesion and psychological relationship between the customer and the company or organization
The quality of a good relationship is manifested by the growth of customer trust the presence of customer commitment to always use the companys services and customer satisfaction with the overall service provided by the company
Customer engagement in this study positively contribute to customer value the better the company does customer engagement efforts it will contribute to higher customer value Involving customers such as inviting them to share about the things to improve the performance of the company or promote cooperation between companies and customers (share) inviting customers to know more about the company (learning) motivating the customer to inform others about product and service of companies (advocating) motivating customers to promote products services company (socialization) and motivating customers to contribute ideas to improve the performance and service companies (co-developing) will be able to create high customer value
The studys findings are in line with the study conducted by Li and Dant in Vivek (2011) which concludes that the intensity of customer engagement will be positively related to the value received by customers By the time customers are treated very well and considered as part of the company it will raise the principle of reciprocity in which the customer will give the good attitude as good as what they have received by the company (Bagozzidalam Vivek 2011)
Companies Interaction to customers via initiative engagement strategies will make the reciprocity norm appear to customersrsquo engagement If the company successfully engage customers customers will recognize the benefits received and give return values to indicate behavioral intentions In the return of value received customers will have a good faith and affective commitment to the organization and may be willing to develop a strong relationship with the organization
Moreover in this study relationship quality give positive influence on customer value The better relationship quality the better the customer value will be It means that relationship quality is one of the important factors to increase customer value Relationship quality is needed to drive steer cultivate and maintain customer behavior towards the achievement of better corporate performance
Relationship quality in this study also serves as a mediator of the influence of customer engagement toward customer value Customer value will be stronger with the role of relationship quality in it Starting from involving customers by sharing it will create a good relationship between the company and customers Then One of the good form of relationship is the emergence of self-confidence of the customers toward the the company Based on these good relationships created customers will give a positive assessment to the company by the form of manifesting customer awareness of the companys survival (affective commitment) which in this study seems to show the highest loading value of all indicators of customer value
Empirically findings of this study support the finding by John (2008) that concludes that the success in fostering good relationship with customers is actually a beneficial thing that can bring profit for both parties The relationship created between the company and the customer will make communication better
After feeling satisfied and having created a good relationship then the customers will tell the companyrsquos advantage to others The information spread by the customer can build a good image about the company and it can bring in new clients or customers for the companyBy a good relationship not only company but also customers will get profits and advantages Benefits and advantages gained by customers also vary eg special price given by the company and get extra service for being a loyal customer
F CONCLUSION Based on the analysis and discussion in this study it obtains a general conclusion as
follows
1st Piksi International Conference on Knowledge and Sciences 2014 Page | 17
1) Customer engagement have a positive significant influence on relationship quality It means that the better the customer engagement the better the relationship quality will be and the increased sharing programs between companies and customers is a way that can be used to improve customer engagement and gain trust of customers to be better 2) Customer engagement have a positive significant influence on customer value It means that the better the customer engagement the better the customer value will be and the improvement of sharing programs between companies and customers is a way that can be used to improve customer engagement and to establish customer awareness of the companiesrsquo survival company (affective commitment) And 3) Relationship quality have a positive significant influence on customer value it means that the better the relationship quality the better the customer value and establishing trust of the customer is a way to improve the quality of relationships and increase customer awareness of companies survival (affective commitment)
This study has limitations that is the study results can not be generalized beyond the sample of the study because the respondents used is only limited to customers of PT Siba Courier Indonesia representing Semarang and Jakarta city Thus to conduct similar study involving all customers of PT Siba Courier Indonesia spreading in many cities around Indonesia still need to be considered
BIBLIOGRAPHY Brodie JR Ilic A Hollebeek L 2011 Consumer engagement in a virtual brand community An
exploratory analysis Journal of Business Research xxx (2011) xxxndashxxx Cateora Philip R Graham John L 2007 Pemasaran Internasional 13th Edition Jakarta Salemba
Empat Chan S 2003 Relationship Marketing Inovasi Pemasaran yang Membuat Pelanggan Bertekuk
Lutut Jakarta Penerbit PT Gramedia Pustaka Utama Copulsky J R and M J Wolf 1990 Relationship Marketing Positioning for the Future The
Journal of Business Strategy Fandy Tjiptono 2005 Pemasaran Jasa 1st Edition Malang Bayu Media Publishing Fuad Masrsquoud 2004 Survai Diagnosis Organisasional Konsep dan Aplikasi Semarang Diponegoro
University Press Groumlnroos C 1994 ldquoFrom Marketing Mix to Relationship Marketing Towards a Paradigm Shift in
Marketingrdquo Management Decision Vol 32 No 2 pp 4-20 Hollebeek LD 2009 Demystifying Customer Engagement Toward the Development of a
Conceptual Model AMZNAC 2009 1-9 Imam Ghozali 2006 Structural Equation Modeling Metode Alternatif denganPLS (Kedua ed)
Semarang Diponegoro University Press Kotler Philip amp Keller Kevin Lane 2009 Manajemen Pemasaran Edisi 13 Jilid 2 Jakarta PT
Indeks Kotler Philip 2007 Manajemen Pemasaran Analisis Perencanaan Pengendalian Prentice Hall
Edisi Bahasa Indonesia Jakarta Salemba Empat Kumar V Lerzan A Bas D Rajkumar V Thorsten W dan Sebastian T 2010 Undervalued or
Overvalued Customers Capturing Total Customer engagement Value Journal of Service Research 13(3) 297-310
MacInnis dan Mello Jefrey A 2001 StrategicHuman Resources Management International Edition South Western Publishing Ohio
Mowen John C dan Minor M 2002 Perilaku Konsumen Jilid 1 Edisi Kelima (terjemahan) Jakarta Erlangga
Nammir Darman Sulaiman Sadiq Bayar Mohamed Rasheed Marane Aree Mohammed Ali 2012 Determine the Role of Customer engagement on Relationship Quality and Relationship Performance European Journal of Business and Management wwwiisteorgISSN 2222-1905 (Paper) ISSN 2222-2839 (Online) Vol 4 No11 2012
Peter Paul J and Olson Jerry C 2002Perilaku Konsumen dan StrategiPemasaran Edisi ke Empat (Terjemahan) Jakarta Penerbit Erlangga
1st Piksi International Conference on Knowledge and Sciences 2014 Page | 18
Rustono 2010 Faktor-faktor yang Mempengaruhi Implementasi Customer Relationship Mangement (CRM) untuk Meningkatkan Loyalitas PelangganRagamJurnal Pengembangan Humaniora Vol 10 No 3 Desember 2010 153-160
Ryals L and S Knox 2001 ldquoCross-Functional Issue in the Implementation of Relationship Marketing Through Customer relationship Managementrdquo European Management Journal Vol 19 No 5 pp 534-542
Setiadi J Nugroho 2005 Perilaku Konsumen Jakarta Kencana Sugiyono 2008 Metode Penelitian Kuantitatif Kualitatif dan RampD Bandung Alfabeta Tjahyadi RA 2010Membangun Hubungan Jangka Panjang Pelanggan Melalui Relationship
Marketing httpmajourmaranathaeduindexphpjurnal-manajemenarticleview178 Vivek SD 2011 A Scale Of Consumer Engagement Disertasi Department of Management and
Marketing in the Graduate School of The University of Alabama Yahya Y 2008 Pengaruh Customer Relationship Management (CRM) dalam Meningkatkan loyalitas
Pelanggan httpfebudiluhuracidwp-contentuploads201105Pengaruh-Customer-Relationship-Management-Dalam-Meningkatka-Loyalitas-Pelanggan-Yohanes-Yahyapdf
- -
(0)
I~ 1 PICKS 2014 Committee ISSN 2407 ~ l722 ~ POLITEKNIK PIKSI GANESHA Gedung Rektoratmiddotmiddot Kampus 1 JI jend Gatot Stibroto No 301 Bandung 40274 9171111~JJ
Published by LPPM Pollteknlk Piksi GaneshO
-Batidung lndonesIClmiddot
1st Piksi International Conference on Knowledge and Sciences 2014 Page | 12
Research Variables and Indicators No Variables Indicators Shape
1 Customer engagement is the level of customers attention to the company
Sharing (CE1)
Likert Scale 1-5
Learning (CE2) Advocating (CE3) Socialization (CE4) Co-developing (CE5)
2 Relationship quality is quality of the relationship created between customer and companies
Trust (RQ1) Commitment (RQ2) Satisfaction (RQ3)
3
Customer value is the matched value perceived by customers on the services prices of the products quality received by them
Connection with Company (CV1) Goodwill (CV2) Word of Mouth (CV3) Affective Commitment (CV4) Intent to do Business (CV5)
Data Analysis
PLS (Partial Least Square) is used to examine and test the hypothesis proposed PLS has advantages that lsquoit involves no assumptions about the population or scale of measurement (Fornell amp Bookstein 1982) and consequently it works without distributional assumptions and by nominal ordinal and interval scaled variables However one has to bear in mind that the PLS like any statistical technique also requires certain assumptions to be fulfilled Apart from the standard ones (ie the classical Gaussian linear ordinary least squares) regression models (see eg Gujarati 1995) the most important predictor of the assumption is the specification (Chin amp Newsted 1999)
D FINDINGS Based on data analysis of the study it can be explained the analysis of partial least
squares (PLS) as follows Inner PLS model results
The indicators of customer engagement consist of sharing (CE1) learning (CE2) advocating (CE3) socialization (CE4) and co-developing (CE5) The outline of the PLS model for the indicators proposed is shown in Table 2
Table 2 Test Results of Validity and Reliability of Customer Engagement Indicator Variables
No Indicator Test Validity Composite Reliability Loading T-Statistic Criteria
1 CE 1 0919 9438 valid
0876 2 CE 2 0753 5330 valid 3 CE 3 0711 4915 valid 4 CE 4 0851 7639 valid 5 CE 5 0854 6314 valid
Sources Primary data processed in 2014
Table 2 is the result of convergent validity test 5 indicators of customer engagement have loading factor value more than 05 by the T statistical value of all indicators greater than T Table by 196 so that all indicators of customer engagement can be said to be valid The order of the strongest to the weakest indicator is CE1 (sharing) CE5 (co-developing) CE4
1st Piksi International Conference on Knowledge and Sciences 2014 Page | 13
(socialization) CE2 (learning) and CE3 (advocating) Based on the composite reliability test of indicator measuring the construct it shows a satisfactory results in the amount of 0876 meaning that the construct of customer engagement can provide relatively similar results when it is measured again by the same subjects
The indicator of Relationship quality consists of three indicators namely trust (RQ1) commitment (RQ2) and satisfaction (RQ3) The results of the PLS model for the outer indicators is shown in Table 3 below
Table 3
Test Results of Validity and Reliability of Relationship Quality Indicator Variables
No Indicator Test Validity Composite Reliability Loading T-Statistic Criteria
1 RQ1 0822 4959 valid 0731 2 RQ2 0812 5508 valid
3 RQ3 0785 5318 valid
Sources Primary data were processed in 2014
Table 3 is the result of convergent validity test 3 indicators of relationship quality has a loading factor values more than 05 and the value of the T statistic is higher than the T table by 196 so that all indicators of relationship quality can be said to be valid The order of the strongest to the weakest indicator is RQ1 RQ2 and RQ3 Based on the composite reliability test of the indicators measuring construction it showes a satisfactory results in the amount of 0731 meaning that the relationship quality constructs can provide relatively similar results if it is measured again by the same subjects
The indicator of Customer value consists of 5 indicators the connection with the commpany (CV1) goodwill (CV2) word of mouth (CV3) affective commitment (CV4) and intent to do business (CV5) The result of outer model is in Table 4
Table 4 Test Results of Validity and Reliability of Customer value Indicator Variables
No Indicator Test Validity Composite Reliability Loading T-Statistic Criteria
1 CV1 0 815 9 382 valid
0860 2 CV2 0 752 6 211 valid 3 CV3 0 712 4 022 valid 4 CV4 0 886 7 349 valid 5 CV5 0 837 7 649 valid
Table 4 is the result of convergent validity test 5 indicators of customer value has a
loading factor value more than 05 and the value of statistical Tgt T Table by 196 so that all indicators of customer value can be said to be valid The order of the strongest to the weakest indicator is CV4 CV5 CV1 CV2 and CV3 Based on the composite reliability test of indicators measuring the block construct it shows a satisfactory results in the amount of 0860 meaning that the construct of customer value can provide relatively similar results if it is measured again by the same subjects Inner PLS model results
Inner models describes the relationship among latent variables based on substantive theory The results of the bootstrapping output graphs display the relationship among variables such as customer engagement relationship quality and customer value as shown in Figure 2
1st Piksi International Conference on Knowledge and Sciences 2014 Page | 14
Based on calculations in Figure 2 It is known that the direct influence of customer engagement on customer value is equal to 0491 with the indirect influence of 0984 x 0507 = 0499 It means that the indirect influence is higher than the direct Thus the relationship quality variable is the path of the relationship between the customer engagement and customer value Briefly it means that customer engagement can directly improve customer value by trying to increase the relationship quality first
Sources Primary data processed 2014 Figure 1
The relationship Model between the Customer Engagement Relationship quality and Customer value of PT Siba Courier Indonesia
Figure 1 also shows the magnitude of the determination coefficient The coefficient of determination is used to recognize how significant the influence of exogenous variables toward endogenous the higher the value of the coefficient of determination the higher the influence of exogenous variables on endogenous will be R-square value generated from the relationship between customer engagement with the relationship quality is 0969 meaning that the variation of relationship quality which can be explained by customer engagement is 969 while the remaining 31 is obtained from other variables Then R-square value of the relationship model between customer engagement relationship quality and customer value is 0988 it means that the variation of customer value that can be explained by the relationship quality and customer engagement is 988 while the remaining 12 are determined by other variables
Then the hypothesis test is performed by looking at the value of t count if tcount is higher than ttable (alpha 5 = 196) then the alternative hypothesis (H a) is accepted and H 0 is rejected and so that for the opposite Based on the PLS test the results of testing the relationship among variables can be seen in Table 9 and Figure 3
Table 5 Results of Inner Weight
No The relationship among variables Original Sample (O) T Statistics (| O Sterr |) Criteria
1 CE -gt CV 0491 2312 Significant 2 CE -gt RQ 0984 110053 Significant 3 RQ -gt CV 0507 2383 Significant
Sources Primary data processed 2014
1st Piksi International Conference on Knowledge and Sciences 2014 Page | 15
1 The first hypothesis the customer engagement significantly influences the relationship quality Based on the PLS calculations result in Table 8 testing the first hypothesis about the
influence of customer engagement on relationship quality it is obtained the value of the estimated coefficient (β) of 0984 with t statistic value of 110053 This result is much higher than t-table value which is only 196 Then it can be concluded that there is a positive significant influence on the customer engagement variable toward the relationship quality Thus the first hypothesis is accepted
2 The second hypothesis the customer engagement significantly influences the customer value Based on the PLS calculations result in Table 9 testing the second hypothesis about the
influence of customer engagement toward customer value it is obtained the value of the estimated coefficient (β) of 0491 with t statistic value of 2312 This result is higher than t-table value which is only 196 So it can be concluded that there is a positive significant influence of the customer engagement variable toward customer value Thus the second hypothesis is accepted
3 The third hypothesis relationship quality significantly influence customer value Based on the PLS calculations result in Table 9 testing the third hypothesis about the
influence of relationship quality on customer value it is obtained the value of the estimated coefficient (β) of 0507 with t statistic value of 2383 This result is higher than t-table value which is only 196 So it can be concluded that there is a positive significant influence of the relationship quality variable on customer value Thus the third hypothesis is accepted Sobel Test Results
Sobel test is conducted by testing the strength of the indirect influence of independent variables (customer engagement) toward dependent variable (customer value) through intervening variable (relationship quality) This test is done by Online Sobel Test Calculator for the Significance of Mediation by entering the regression coefficient and standard error values of the customer engagement variables to the relationship quality and the regression coefficient and standard error values of the relationship quality variable to customer value in which it gets the result as follows
Figure 4
Sobel Test Results Sobel test shown in Figure 4 shows the Sobel test statistic value of 23797 with a one-
side significance value of 0009 because the significance value is lt005 therefore it can be said that the relationship quality is the intervening variable of the correlation of customer engagement and customer value
E DISCUSSION In this study Customer engagement positively influences relationship quality it means
that the better the customer engagement the better the relationship quality between the customer and the company By involving customers such as Inviting them to share about the things to improve the performance of the company or promote cooperation between companies and customers (share) inviting customers to know more about the company (learning) motivating customers to inform others about the companys products or services (advocating) motivating customers to promote products services of the company (socialization) and motivating customers to contribute ideas that might contribute to the improvement of performance and service of the companies (co-developing) then it will be able to create a good quality relationships between the companies and customers
1st Piksi International Conference on Knowledge and Sciences 2014 Page | 16
This is in line with the findings by Saks (2006) which states that the employee engagement has been implemented as a means to explore and explain the organizational commitment and behaviors of the members and also applied as a predictor of customer ratings toward the companies Furthermore the finding of the study is also in accordance with the opinion of Salanova et al (2005) that engagement has also been recognized as a way to improve morale cohesion and psychological relationship between the customer and the company or organization
The quality of a good relationship is manifested by the growth of customer trust the presence of customer commitment to always use the companys services and customer satisfaction with the overall service provided by the company
Customer engagement in this study positively contribute to customer value the better the company does customer engagement efforts it will contribute to higher customer value Involving customers such as inviting them to share about the things to improve the performance of the company or promote cooperation between companies and customers (share) inviting customers to know more about the company (learning) motivating the customer to inform others about product and service of companies (advocating) motivating customers to promote products services company (socialization) and motivating customers to contribute ideas to improve the performance and service companies (co-developing) will be able to create high customer value
The studys findings are in line with the study conducted by Li and Dant in Vivek (2011) which concludes that the intensity of customer engagement will be positively related to the value received by customers By the time customers are treated very well and considered as part of the company it will raise the principle of reciprocity in which the customer will give the good attitude as good as what they have received by the company (Bagozzidalam Vivek 2011)
Companies Interaction to customers via initiative engagement strategies will make the reciprocity norm appear to customersrsquo engagement If the company successfully engage customers customers will recognize the benefits received and give return values to indicate behavioral intentions In the return of value received customers will have a good faith and affective commitment to the organization and may be willing to develop a strong relationship with the organization
Moreover in this study relationship quality give positive influence on customer value The better relationship quality the better the customer value will be It means that relationship quality is one of the important factors to increase customer value Relationship quality is needed to drive steer cultivate and maintain customer behavior towards the achievement of better corporate performance
Relationship quality in this study also serves as a mediator of the influence of customer engagement toward customer value Customer value will be stronger with the role of relationship quality in it Starting from involving customers by sharing it will create a good relationship between the company and customers Then One of the good form of relationship is the emergence of self-confidence of the customers toward the the company Based on these good relationships created customers will give a positive assessment to the company by the form of manifesting customer awareness of the companys survival (affective commitment) which in this study seems to show the highest loading value of all indicators of customer value
Empirically findings of this study support the finding by John (2008) that concludes that the success in fostering good relationship with customers is actually a beneficial thing that can bring profit for both parties The relationship created between the company and the customer will make communication better
After feeling satisfied and having created a good relationship then the customers will tell the companyrsquos advantage to others The information spread by the customer can build a good image about the company and it can bring in new clients or customers for the companyBy a good relationship not only company but also customers will get profits and advantages Benefits and advantages gained by customers also vary eg special price given by the company and get extra service for being a loyal customer
F CONCLUSION Based on the analysis and discussion in this study it obtains a general conclusion as
follows
1st Piksi International Conference on Knowledge and Sciences 2014 Page | 17
1) Customer engagement have a positive significant influence on relationship quality It means that the better the customer engagement the better the relationship quality will be and the increased sharing programs between companies and customers is a way that can be used to improve customer engagement and gain trust of customers to be better 2) Customer engagement have a positive significant influence on customer value It means that the better the customer engagement the better the customer value will be and the improvement of sharing programs between companies and customers is a way that can be used to improve customer engagement and to establish customer awareness of the companiesrsquo survival company (affective commitment) And 3) Relationship quality have a positive significant influence on customer value it means that the better the relationship quality the better the customer value and establishing trust of the customer is a way to improve the quality of relationships and increase customer awareness of companies survival (affective commitment)
This study has limitations that is the study results can not be generalized beyond the sample of the study because the respondents used is only limited to customers of PT Siba Courier Indonesia representing Semarang and Jakarta city Thus to conduct similar study involving all customers of PT Siba Courier Indonesia spreading in many cities around Indonesia still need to be considered
BIBLIOGRAPHY Brodie JR Ilic A Hollebeek L 2011 Consumer engagement in a virtual brand community An
exploratory analysis Journal of Business Research xxx (2011) xxxndashxxx Cateora Philip R Graham John L 2007 Pemasaran Internasional 13th Edition Jakarta Salemba
Empat Chan S 2003 Relationship Marketing Inovasi Pemasaran yang Membuat Pelanggan Bertekuk
Lutut Jakarta Penerbit PT Gramedia Pustaka Utama Copulsky J R and M J Wolf 1990 Relationship Marketing Positioning for the Future The
Journal of Business Strategy Fandy Tjiptono 2005 Pemasaran Jasa 1st Edition Malang Bayu Media Publishing Fuad Masrsquoud 2004 Survai Diagnosis Organisasional Konsep dan Aplikasi Semarang Diponegoro
University Press Groumlnroos C 1994 ldquoFrom Marketing Mix to Relationship Marketing Towards a Paradigm Shift in
Marketingrdquo Management Decision Vol 32 No 2 pp 4-20 Hollebeek LD 2009 Demystifying Customer Engagement Toward the Development of a
Conceptual Model AMZNAC 2009 1-9 Imam Ghozali 2006 Structural Equation Modeling Metode Alternatif denganPLS (Kedua ed)
Semarang Diponegoro University Press Kotler Philip amp Keller Kevin Lane 2009 Manajemen Pemasaran Edisi 13 Jilid 2 Jakarta PT
Indeks Kotler Philip 2007 Manajemen Pemasaran Analisis Perencanaan Pengendalian Prentice Hall
Edisi Bahasa Indonesia Jakarta Salemba Empat Kumar V Lerzan A Bas D Rajkumar V Thorsten W dan Sebastian T 2010 Undervalued or
Overvalued Customers Capturing Total Customer engagement Value Journal of Service Research 13(3) 297-310
MacInnis dan Mello Jefrey A 2001 StrategicHuman Resources Management International Edition South Western Publishing Ohio
Mowen John C dan Minor M 2002 Perilaku Konsumen Jilid 1 Edisi Kelima (terjemahan) Jakarta Erlangga
Nammir Darman Sulaiman Sadiq Bayar Mohamed Rasheed Marane Aree Mohammed Ali 2012 Determine the Role of Customer engagement on Relationship Quality and Relationship Performance European Journal of Business and Management wwwiisteorgISSN 2222-1905 (Paper) ISSN 2222-2839 (Online) Vol 4 No11 2012
Peter Paul J and Olson Jerry C 2002Perilaku Konsumen dan StrategiPemasaran Edisi ke Empat (Terjemahan) Jakarta Penerbit Erlangga
1st Piksi International Conference on Knowledge and Sciences 2014 Page | 18
Rustono 2010 Faktor-faktor yang Mempengaruhi Implementasi Customer Relationship Mangement (CRM) untuk Meningkatkan Loyalitas PelangganRagamJurnal Pengembangan Humaniora Vol 10 No 3 Desember 2010 153-160
Ryals L and S Knox 2001 ldquoCross-Functional Issue in the Implementation of Relationship Marketing Through Customer relationship Managementrdquo European Management Journal Vol 19 No 5 pp 534-542
Setiadi J Nugroho 2005 Perilaku Konsumen Jakarta Kencana Sugiyono 2008 Metode Penelitian Kuantitatif Kualitatif dan RampD Bandung Alfabeta Tjahyadi RA 2010Membangun Hubungan Jangka Panjang Pelanggan Melalui Relationship
Marketing httpmajourmaranathaeduindexphpjurnal-manajemenarticleview178 Vivek SD 2011 A Scale Of Consumer Engagement Disertasi Department of Management and
Marketing in the Graduate School of The University of Alabama Yahya Y 2008 Pengaruh Customer Relationship Management (CRM) dalam Meningkatkan loyalitas
Pelanggan httpfebudiluhuracidwp-contentuploads201105Pengaruh-Customer-Relationship-Management-Dalam-Meningkatka-Loyalitas-Pelanggan-Yohanes-Yahyapdf
- -
(0)
I~ 1 PICKS 2014 Committee ISSN 2407 ~ l722 ~ POLITEKNIK PIKSI GANESHA Gedung Rektoratmiddotmiddot Kampus 1 JI jend Gatot Stibroto No 301 Bandung 40274 9171111~JJ
Published by LPPM Pollteknlk Piksi GaneshO
-Batidung lndonesIClmiddot
1st Piksi International Conference on Knowledge and Sciences 2014 Page | 13
(socialization) CE2 (learning) and CE3 (advocating) Based on the composite reliability test of indicator measuring the construct it shows a satisfactory results in the amount of 0876 meaning that the construct of customer engagement can provide relatively similar results when it is measured again by the same subjects
The indicator of Relationship quality consists of three indicators namely trust (RQ1) commitment (RQ2) and satisfaction (RQ3) The results of the PLS model for the outer indicators is shown in Table 3 below
Table 3
Test Results of Validity and Reliability of Relationship Quality Indicator Variables
No Indicator Test Validity Composite Reliability Loading T-Statistic Criteria
1 RQ1 0822 4959 valid 0731 2 RQ2 0812 5508 valid
3 RQ3 0785 5318 valid
Sources Primary data were processed in 2014
Table 3 is the result of convergent validity test 3 indicators of relationship quality has a loading factor values more than 05 and the value of the T statistic is higher than the T table by 196 so that all indicators of relationship quality can be said to be valid The order of the strongest to the weakest indicator is RQ1 RQ2 and RQ3 Based on the composite reliability test of the indicators measuring construction it showes a satisfactory results in the amount of 0731 meaning that the relationship quality constructs can provide relatively similar results if it is measured again by the same subjects
The indicator of Customer value consists of 5 indicators the connection with the commpany (CV1) goodwill (CV2) word of mouth (CV3) affective commitment (CV4) and intent to do business (CV5) The result of outer model is in Table 4
Table 4 Test Results of Validity and Reliability of Customer value Indicator Variables
No Indicator Test Validity Composite Reliability Loading T-Statistic Criteria
1 CV1 0 815 9 382 valid
0860 2 CV2 0 752 6 211 valid 3 CV3 0 712 4 022 valid 4 CV4 0 886 7 349 valid 5 CV5 0 837 7 649 valid
Table 4 is the result of convergent validity test 5 indicators of customer value has a
loading factor value more than 05 and the value of statistical Tgt T Table by 196 so that all indicators of customer value can be said to be valid The order of the strongest to the weakest indicator is CV4 CV5 CV1 CV2 and CV3 Based on the composite reliability test of indicators measuring the block construct it shows a satisfactory results in the amount of 0860 meaning that the construct of customer value can provide relatively similar results if it is measured again by the same subjects Inner PLS model results
Inner models describes the relationship among latent variables based on substantive theory The results of the bootstrapping output graphs display the relationship among variables such as customer engagement relationship quality and customer value as shown in Figure 2
1st Piksi International Conference on Knowledge and Sciences 2014 Page | 14
Based on calculations in Figure 2 It is known that the direct influence of customer engagement on customer value is equal to 0491 with the indirect influence of 0984 x 0507 = 0499 It means that the indirect influence is higher than the direct Thus the relationship quality variable is the path of the relationship between the customer engagement and customer value Briefly it means that customer engagement can directly improve customer value by trying to increase the relationship quality first
Sources Primary data processed 2014 Figure 1
The relationship Model between the Customer Engagement Relationship quality and Customer value of PT Siba Courier Indonesia
Figure 1 also shows the magnitude of the determination coefficient The coefficient of determination is used to recognize how significant the influence of exogenous variables toward endogenous the higher the value of the coefficient of determination the higher the influence of exogenous variables on endogenous will be R-square value generated from the relationship between customer engagement with the relationship quality is 0969 meaning that the variation of relationship quality which can be explained by customer engagement is 969 while the remaining 31 is obtained from other variables Then R-square value of the relationship model between customer engagement relationship quality and customer value is 0988 it means that the variation of customer value that can be explained by the relationship quality and customer engagement is 988 while the remaining 12 are determined by other variables
Then the hypothesis test is performed by looking at the value of t count if tcount is higher than ttable (alpha 5 = 196) then the alternative hypothesis (H a) is accepted and H 0 is rejected and so that for the opposite Based on the PLS test the results of testing the relationship among variables can be seen in Table 9 and Figure 3
Table 5 Results of Inner Weight
No The relationship among variables Original Sample (O) T Statistics (| O Sterr |) Criteria
1 CE -gt CV 0491 2312 Significant 2 CE -gt RQ 0984 110053 Significant 3 RQ -gt CV 0507 2383 Significant
Sources Primary data processed 2014
1st Piksi International Conference on Knowledge and Sciences 2014 Page | 15
1 The first hypothesis the customer engagement significantly influences the relationship quality Based on the PLS calculations result in Table 8 testing the first hypothesis about the
influence of customer engagement on relationship quality it is obtained the value of the estimated coefficient (β) of 0984 with t statistic value of 110053 This result is much higher than t-table value which is only 196 Then it can be concluded that there is a positive significant influence on the customer engagement variable toward the relationship quality Thus the first hypothesis is accepted
2 The second hypothesis the customer engagement significantly influences the customer value Based on the PLS calculations result in Table 9 testing the second hypothesis about the
influence of customer engagement toward customer value it is obtained the value of the estimated coefficient (β) of 0491 with t statistic value of 2312 This result is higher than t-table value which is only 196 So it can be concluded that there is a positive significant influence of the customer engagement variable toward customer value Thus the second hypothesis is accepted
3 The third hypothesis relationship quality significantly influence customer value Based on the PLS calculations result in Table 9 testing the third hypothesis about the
influence of relationship quality on customer value it is obtained the value of the estimated coefficient (β) of 0507 with t statistic value of 2383 This result is higher than t-table value which is only 196 So it can be concluded that there is a positive significant influence of the relationship quality variable on customer value Thus the third hypothesis is accepted Sobel Test Results
Sobel test is conducted by testing the strength of the indirect influence of independent variables (customer engagement) toward dependent variable (customer value) through intervening variable (relationship quality) This test is done by Online Sobel Test Calculator for the Significance of Mediation by entering the regression coefficient and standard error values of the customer engagement variables to the relationship quality and the regression coefficient and standard error values of the relationship quality variable to customer value in which it gets the result as follows
Figure 4
Sobel Test Results Sobel test shown in Figure 4 shows the Sobel test statistic value of 23797 with a one-
side significance value of 0009 because the significance value is lt005 therefore it can be said that the relationship quality is the intervening variable of the correlation of customer engagement and customer value
E DISCUSSION In this study Customer engagement positively influences relationship quality it means
that the better the customer engagement the better the relationship quality between the customer and the company By involving customers such as Inviting them to share about the things to improve the performance of the company or promote cooperation between companies and customers (share) inviting customers to know more about the company (learning) motivating customers to inform others about the companys products or services (advocating) motivating customers to promote products services of the company (socialization) and motivating customers to contribute ideas that might contribute to the improvement of performance and service of the companies (co-developing) then it will be able to create a good quality relationships between the companies and customers
1st Piksi International Conference on Knowledge and Sciences 2014 Page | 16
This is in line with the findings by Saks (2006) which states that the employee engagement has been implemented as a means to explore and explain the organizational commitment and behaviors of the members and also applied as a predictor of customer ratings toward the companies Furthermore the finding of the study is also in accordance with the opinion of Salanova et al (2005) that engagement has also been recognized as a way to improve morale cohesion and psychological relationship between the customer and the company or organization
The quality of a good relationship is manifested by the growth of customer trust the presence of customer commitment to always use the companys services and customer satisfaction with the overall service provided by the company
Customer engagement in this study positively contribute to customer value the better the company does customer engagement efforts it will contribute to higher customer value Involving customers such as inviting them to share about the things to improve the performance of the company or promote cooperation between companies and customers (share) inviting customers to know more about the company (learning) motivating the customer to inform others about product and service of companies (advocating) motivating customers to promote products services company (socialization) and motivating customers to contribute ideas to improve the performance and service companies (co-developing) will be able to create high customer value
The studys findings are in line with the study conducted by Li and Dant in Vivek (2011) which concludes that the intensity of customer engagement will be positively related to the value received by customers By the time customers are treated very well and considered as part of the company it will raise the principle of reciprocity in which the customer will give the good attitude as good as what they have received by the company (Bagozzidalam Vivek 2011)
Companies Interaction to customers via initiative engagement strategies will make the reciprocity norm appear to customersrsquo engagement If the company successfully engage customers customers will recognize the benefits received and give return values to indicate behavioral intentions In the return of value received customers will have a good faith and affective commitment to the organization and may be willing to develop a strong relationship with the organization
Moreover in this study relationship quality give positive influence on customer value The better relationship quality the better the customer value will be It means that relationship quality is one of the important factors to increase customer value Relationship quality is needed to drive steer cultivate and maintain customer behavior towards the achievement of better corporate performance
Relationship quality in this study also serves as a mediator of the influence of customer engagement toward customer value Customer value will be stronger with the role of relationship quality in it Starting from involving customers by sharing it will create a good relationship between the company and customers Then One of the good form of relationship is the emergence of self-confidence of the customers toward the the company Based on these good relationships created customers will give a positive assessment to the company by the form of manifesting customer awareness of the companys survival (affective commitment) which in this study seems to show the highest loading value of all indicators of customer value
Empirically findings of this study support the finding by John (2008) that concludes that the success in fostering good relationship with customers is actually a beneficial thing that can bring profit for both parties The relationship created between the company and the customer will make communication better
After feeling satisfied and having created a good relationship then the customers will tell the companyrsquos advantage to others The information spread by the customer can build a good image about the company and it can bring in new clients or customers for the companyBy a good relationship not only company but also customers will get profits and advantages Benefits and advantages gained by customers also vary eg special price given by the company and get extra service for being a loyal customer
F CONCLUSION Based on the analysis and discussion in this study it obtains a general conclusion as
follows
1st Piksi International Conference on Knowledge and Sciences 2014 Page | 17
1) Customer engagement have a positive significant influence on relationship quality It means that the better the customer engagement the better the relationship quality will be and the increased sharing programs between companies and customers is a way that can be used to improve customer engagement and gain trust of customers to be better 2) Customer engagement have a positive significant influence on customer value It means that the better the customer engagement the better the customer value will be and the improvement of sharing programs between companies and customers is a way that can be used to improve customer engagement and to establish customer awareness of the companiesrsquo survival company (affective commitment) And 3) Relationship quality have a positive significant influence on customer value it means that the better the relationship quality the better the customer value and establishing trust of the customer is a way to improve the quality of relationships and increase customer awareness of companies survival (affective commitment)
This study has limitations that is the study results can not be generalized beyond the sample of the study because the respondents used is only limited to customers of PT Siba Courier Indonesia representing Semarang and Jakarta city Thus to conduct similar study involving all customers of PT Siba Courier Indonesia spreading in many cities around Indonesia still need to be considered
BIBLIOGRAPHY Brodie JR Ilic A Hollebeek L 2011 Consumer engagement in a virtual brand community An
exploratory analysis Journal of Business Research xxx (2011) xxxndashxxx Cateora Philip R Graham John L 2007 Pemasaran Internasional 13th Edition Jakarta Salemba
Empat Chan S 2003 Relationship Marketing Inovasi Pemasaran yang Membuat Pelanggan Bertekuk
Lutut Jakarta Penerbit PT Gramedia Pustaka Utama Copulsky J R and M J Wolf 1990 Relationship Marketing Positioning for the Future The
Journal of Business Strategy Fandy Tjiptono 2005 Pemasaran Jasa 1st Edition Malang Bayu Media Publishing Fuad Masrsquoud 2004 Survai Diagnosis Organisasional Konsep dan Aplikasi Semarang Diponegoro
University Press Groumlnroos C 1994 ldquoFrom Marketing Mix to Relationship Marketing Towards a Paradigm Shift in
Marketingrdquo Management Decision Vol 32 No 2 pp 4-20 Hollebeek LD 2009 Demystifying Customer Engagement Toward the Development of a
Conceptual Model AMZNAC 2009 1-9 Imam Ghozali 2006 Structural Equation Modeling Metode Alternatif denganPLS (Kedua ed)
Semarang Diponegoro University Press Kotler Philip amp Keller Kevin Lane 2009 Manajemen Pemasaran Edisi 13 Jilid 2 Jakarta PT
Indeks Kotler Philip 2007 Manajemen Pemasaran Analisis Perencanaan Pengendalian Prentice Hall
Edisi Bahasa Indonesia Jakarta Salemba Empat Kumar V Lerzan A Bas D Rajkumar V Thorsten W dan Sebastian T 2010 Undervalued or
Overvalued Customers Capturing Total Customer engagement Value Journal of Service Research 13(3) 297-310
MacInnis dan Mello Jefrey A 2001 StrategicHuman Resources Management International Edition South Western Publishing Ohio
Mowen John C dan Minor M 2002 Perilaku Konsumen Jilid 1 Edisi Kelima (terjemahan) Jakarta Erlangga
Nammir Darman Sulaiman Sadiq Bayar Mohamed Rasheed Marane Aree Mohammed Ali 2012 Determine the Role of Customer engagement on Relationship Quality and Relationship Performance European Journal of Business and Management wwwiisteorgISSN 2222-1905 (Paper) ISSN 2222-2839 (Online) Vol 4 No11 2012
Peter Paul J and Olson Jerry C 2002Perilaku Konsumen dan StrategiPemasaran Edisi ke Empat (Terjemahan) Jakarta Penerbit Erlangga
1st Piksi International Conference on Knowledge and Sciences 2014 Page | 18
Rustono 2010 Faktor-faktor yang Mempengaruhi Implementasi Customer Relationship Mangement (CRM) untuk Meningkatkan Loyalitas PelangganRagamJurnal Pengembangan Humaniora Vol 10 No 3 Desember 2010 153-160
Ryals L and S Knox 2001 ldquoCross-Functional Issue in the Implementation of Relationship Marketing Through Customer relationship Managementrdquo European Management Journal Vol 19 No 5 pp 534-542
Setiadi J Nugroho 2005 Perilaku Konsumen Jakarta Kencana Sugiyono 2008 Metode Penelitian Kuantitatif Kualitatif dan RampD Bandung Alfabeta Tjahyadi RA 2010Membangun Hubungan Jangka Panjang Pelanggan Melalui Relationship
Marketing httpmajourmaranathaeduindexphpjurnal-manajemenarticleview178 Vivek SD 2011 A Scale Of Consumer Engagement Disertasi Department of Management and
Marketing in the Graduate School of The University of Alabama Yahya Y 2008 Pengaruh Customer Relationship Management (CRM) dalam Meningkatkan loyalitas
Pelanggan httpfebudiluhuracidwp-contentuploads201105Pengaruh-Customer-Relationship-Management-Dalam-Meningkatka-Loyalitas-Pelanggan-Yohanes-Yahyapdf
- -
(0)
I~ 1 PICKS 2014 Committee ISSN 2407 ~ l722 ~ POLITEKNIK PIKSI GANESHA Gedung Rektoratmiddotmiddot Kampus 1 JI jend Gatot Stibroto No 301 Bandung 40274 9171111~JJ
Published by LPPM Pollteknlk Piksi GaneshO
-Batidung lndonesIClmiddot
1st Piksi International Conference on Knowledge and Sciences 2014 Page | 14
Based on calculations in Figure 2 It is known that the direct influence of customer engagement on customer value is equal to 0491 with the indirect influence of 0984 x 0507 = 0499 It means that the indirect influence is higher than the direct Thus the relationship quality variable is the path of the relationship between the customer engagement and customer value Briefly it means that customer engagement can directly improve customer value by trying to increase the relationship quality first
Sources Primary data processed 2014 Figure 1
The relationship Model between the Customer Engagement Relationship quality and Customer value of PT Siba Courier Indonesia
Figure 1 also shows the magnitude of the determination coefficient The coefficient of determination is used to recognize how significant the influence of exogenous variables toward endogenous the higher the value of the coefficient of determination the higher the influence of exogenous variables on endogenous will be R-square value generated from the relationship between customer engagement with the relationship quality is 0969 meaning that the variation of relationship quality which can be explained by customer engagement is 969 while the remaining 31 is obtained from other variables Then R-square value of the relationship model between customer engagement relationship quality and customer value is 0988 it means that the variation of customer value that can be explained by the relationship quality and customer engagement is 988 while the remaining 12 are determined by other variables
Then the hypothesis test is performed by looking at the value of t count if tcount is higher than ttable (alpha 5 = 196) then the alternative hypothesis (H a) is accepted and H 0 is rejected and so that for the opposite Based on the PLS test the results of testing the relationship among variables can be seen in Table 9 and Figure 3
Table 5 Results of Inner Weight
No The relationship among variables Original Sample (O) T Statistics (| O Sterr |) Criteria
1 CE -gt CV 0491 2312 Significant 2 CE -gt RQ 0984 110053 Significant 3 RQ -gt CV 0507 2383 Significant
Sources Primary data processed 2014
1st Piksi International Conference on Knowledge and Sciences 2014 Page | 15
1 The first hypothesis the customer engagement significantly influences the relationship quality Based on the PLS calculations result in Table 8 testing the first hypothesis about the
influence of customer engagement on relationship quality it is obtained the value of the estimated coefficient (β) of 0984 with t statistic value of 110053 This result is much higher than t-table value which is only 196 Then it can be concluded that there is a positive significant influence on the customer engagement variable toward the relationship quality Thus the first hypothesis is accepted
2 The second hypothesis the customer engagement significantly influences the customer value Based on the PLS calculations result in Table 9 testing the second hypothesis about the
influence of customer engagement toward customer value it is obtained the value of the estimated coefficient (β) of 0491 with t statistic value of 2312 This result is higher than t-table value which is only 196 So it can be concluded that there is a positive significant influence of the customer engagement variable toward customer value Thus the second hypothesis is accepted
3 The third hypothesis relationship quality significantly influence customer value Based on the PLS calculations result in Table 9 testing the third hypothesis about the
influence of relationship quality on customer value it is obtained the value of the estimated coefficient (β) of 0507 with t statistic value of 2383 This result is higher than t-table value which is only 196 So it can be concluded that there is a positive significant influence of the relationship quality variable on customer value Thus the third hypothesis is accepted Sobel Test Results
Sobel test is conducted by testing the strength of the indirect influence of independent variables (customer engagement) toward dependent variable (customer value) through intervening variable (relationship quality) This test is done by Online Sobel Test Calculator for the Significance of Mediation by entering the regression coefficient and standard error values of the customer engagement variables to the relationship quality and the regression coefficient and standard error values of the relationship quality variable to customer value in which it gets the result as follows
Figure 4
Sobel Test Results Sobel test shown in Figure 4 shows the Sobel test statistic value of 23797 with a one-
side significance value of 0009 because the significance value is lt005 therefore it can be said that the relationship quality is the intervening variable of the correlation of customer engagement and customer value
E DISCUSSION In this study Customer engagement positively influences relationship quality it means
that the better the customer engagement the better the relationship quality between the customer and the company By involving customers such as Inviting them to share about the things to improve the performance of the company or promote cooperation between companies and customers (share) inviting customers to know more about the company (learning) motivating customers to inform others about the companys products or services (advocating) motivating customers to promote products services of the company (socialization) and motivating customers to contribute ideas that might contribute to the improvement of performance and service of the companies (co-developing) then it will be able to create a good quality relationships between the companies and customers
1st Piksi International Conference on Knowledge and Sciences 2014 Page | 16
This is in line with the findings by Saks (2006) which states that the employee engagement has been implemented as a means to explore and explain the organizational commitment and behaviors of the members and also applied as a predictor of customer ratings toward the companies Furthermore the finding of the study is also in accordance with the opinion of Salanova et al (2005) that engagement has also been recognized as a way to improve morale cohesion and psychological relationship between the customer and the company or organization
The quality of a good relationship is manifested by the growth of customer trust the presence of customer commitment to always use the companys services and customer satisfaction with the overall service provided by the company
Customer engagement in this study positively contribute to customer value the better the company does customer engagement efforts it will contribute to higher customer value Involving customers such as inviting them to share about the things to improve the performance of the company or promote cooperation between companies and customers (share) inviting customers to know more about the company (learning) motivating the customer to inform others about product and service of companies (advocating) motivating customers to promote products services company (socialization) and motivating customers to contribute ideas to improve the performance and service companies (co-developing) will be able to create high customer value
The studys findings are in line with the study conducted by Li and Dant in Vivek (2011) which concludes that the intensity of customer engagement will be positively related to the value received by customers By the time customers are treated very well and considered as part of the company it will raise the principle of reciprocity in which the customer will give the good attitude as good as what they have received by the company (Bagozzidalam Vivek 2011)
Companies Interaction to customers via initiative engagement strategies will make the reciprocity norm appear to customersrsquo engagement If the company successfully engage customers customers will recognize the benefits received and give return values to indicate behavioral intentions In the return of value received customers will have a good faith and affective commitment to the organization and may be willing to develop a strong relationship with the organization
Moreover in this study relationship quality give positive influence on customer value The better relationship quality the better the customer value will be It means that relationship quality is one of the important factors to increase customer value Relationship quality is needed to drive steer cultivate and maintain customer behavior towards the achievement of better corporate performance
Relationship quality in this study also serves as a mediator of the influence of customer engagement toward customer value Customer value will be stronger with the role of relationship quality in it Starting from involving customers by sharing it will create a good relationship between the company and customers Then One of the good form of relationship is the emergence of self-confidence of the customers toward the the company Based on these good relationships created customers will give a positive assessment to the company by the form of manifesting customer awareness of the companys survival (affective commitment) which in this study seems to show the highest loading value of all indicators of customer value
Empirically findings of this study support the finding by John (2008) that concludes that the success in fostering good relationship with customers is actually a beneficial thing that can bring profit for both parties The relationship created between the company and the customer will make communication better
After feeling satisfied and having created a good relationship then the customers will tell the companyrsquos advantage to others The information spread by the customer can build a good image about the company and it can bring in new clients or customers for the companyBy a good relationship not only company but also customers will get profits and advantages Benefits and advantages gained by customers also vary eg special price given by the company and get extra service for being a loyal customer
F CONCLUSION Based on the analysis and discussion in this study it obtains a general conclusion as
follows
1st Piksi International Conference on Knowledge and Sciences 2014 Page | 17
1) Customer engagement have a positive significant influence on relationship quality It means that the better the customer engagement the better the relationship quality will be and the increased sharing programs between companies and customers is a way that can be used to improve customer engagement and gain trust of customers to be better 2) Customer engagement have a positive significant influence on customer value It means that the better the customer engagement the better the customer value will be and the improvement of sharing programs between companies and customers is a way that can be used to improve customer engagement and to establish customer awareness of the companiesrsquo survival company (affective commitment) And 3) Relationship quality have a positive significant influence on customer value it means that the better the relationship quality the better the customer value and establishing trust of the customer is a way to improve the quality of relationships and increase customer awareness of companies survival (affective commitment)
This study has limitations that is the study results can not be generalized beyond the sample of the study because the respondents used is only limited to customers of PT Siba Courier Indonesia representing Semarang and Jakarta city Thus to conduct similar study involving all customers of PT Siba Courier Indonesia spreading in many cities around Indonesia still need to be considered
BIBLIOGRAPHY Brodie JR Ilic A Hollebeek L 2011 Consumer engagement in a virtual brand community An
exploratory analysis Journal of Business Research xxx (2011) xxxndashxxx Cateora Philip R Graham John L 2007 Pemasaran Internasional 13th Edition Jakarta Salemba
Empat Chan S 2003 Relationship Marketing Inovasi Pemasaran yang Membuat Pelanggan Bertekuk
Lutut Jakarta Penerbit PT Gramedia Pustaka Utama Copulsky J R and M J Wolf 1990 Relationship Marketing Positioning for the Future The
Journal of Business Strategy Fandy Tjiptono 2005 Pemasaran Jasa 1st Edition Malang Bayu Media Publishing Fuad Masrsquoud 2004 Survai Diagnosis Organisasional Konsep dan Aplikasi Semarang Diponegoro
University Press Groumlnroos C 1994 ldquoFrom Marketing Mix to Relationship Marketing Towards a Paradigm Shift in
Marketingrdquo Management Decision Vol 32 No 2 pp 4-20 Hollebeek LD 2009 Demystifying Customer Engagement Toward the Development of a
Conceptual Model AMZNAC 2009 1-9 Imam Ghozali 2006 Structural Equation Modeling Metode Alternatif denganPLS (Kedua ed)
Semarang Diponegoro University Press Kotler Philip amp Keller Kevin Lane 2009 Manajemen Pemasaran Edisi 13 Jilid 2 Jakarta PT
Indeks Kotler Philip 2007 Manajemen Pemasaran Analisis Perencanaan Pengendalian Prentice Hall
Edisi Bahasa Indonesia Jakarta Salemba Empat Kumar V Lerzan A Bas D Rajkumar V Thorsten W dan Sebastian T 2010 Undervalued or
Overvalued Customers Capturing Total Customer engagement Value Journal of Service Research 13(3) 297-310
MacInnis dan Mello Jefrey A 2001 StrategicHuman Resources Management International Edition South Western Publishing Ohio
Mowen John C dan Minor M 2002 Perilaku Konsumen Jilid 1 Edisi Kelima (terjemahan) Jakarta Erlangga
Nammir Darman Sulaiman Sadiq Bayar Mohamed Rasheed Marane Aree Mohammed Ali 2012 Determine the Role of Customer engagement on Relationship Quality and Relationship Performance European Journal of Business and Management wwwiisteorgISSN 2222-1905 (Paper) ISSN 2222-2839 (Online) Vol 4 No11 2012
Peter Paul J and Olson Jerry C 2002Perilaku Konsumen dan StrategiPemasaran Edisi ke Empat (Terjemahan) Jakarta Penerbit Erlangga
1st Piksi International Conference on Knowledge and Sciences 2014 Page | 18
Rustono 2010 Faktor-faktor yang Mempengaruhi Implementasi Customer Relationship Mangement (CRM) untuk Meningkatkan Loyalitas PelangganRagamJurnal Pengembangan Humaniora Vol 10 No 3 Desember 2010 153-160
Ryals L and S Knox 2001 ldquoCross-Functional Issue in the Implementation of Relationship Marketing Through Customer relationship Managementrdquo European Management Journal Vol 19 No 5 pp 534-542
Setiadi J Nugroho 2005 Perilaku Konsumen Jakarta Kencana Sugiyono 2008 Metode Penelitian Kuantitatif Kualitatif dan RampD Bandung Alfabeta Tjahyadi RA 2010Membangun Hubungan Jangka Panjang Pelanggan Melalui Relationship
Marketing httpmajourmaranathaeduindexphpjurnal-manajemenarticleview178 Vivek SD 2011 A Scale Of Consumer Engagement Disertasi Department of Management and
Marketing in the Graduate School of The University of Alabama Yahya Y 2008 Pengaruh Customer Relationship Management (CRM) dalam Meningkatkan loyalitas
Pelanggan httpfebudiluhuracidwp-contentuploads201105Pengaruh-Customer-Relationship-Management-Dalam-Meningkatka-Loyalitas-Pelanggan-Yohanes-Yahyapdf
- -
(0)
I~ 1 PICKS 2014 Committee ISSN 2407 ~ l722 ~ POLITEKNIK PIKSI GANESHA Gedung Rektoratmiddotmiddot Kampus 1 JI jend Gatot Stibroto No 301 Bandung 40274 9171111~JJ
Published by LPPM Pollteknlk Piksi GaneshO
-Batidung lndonesIClmiddot
1st Piksi International Conference on Knowledge and Sciences 2014 Page | 15
1 The first hypothesis the customer engagement significantly influences the relationship quality Based on the PLS calculations result in Table 8 testing the first hypothesis about the
influence of customer engagement on relationship quality it is obtained the value of the estimated coefficient (β) of 0984 with t statistic value of 110053 This result is much higher than t-table value which is only 196 Then it can be concluded that there is a positive significant influence on the customer engagement variable toward the relationship quality Thus the first hypothesis is accepted
2 The second hypothesis the customer engagement significantly influences the customer value Based on the PLS calculations result in Table 9 testing the second hypothesis about the
influence of customer engagement toward customer value it is obtained the value of the estimated coefficient (β) of 0491 with t statistic value of 2312 This result is higher than t-table value which is only 196 So it can be concluded that there is a positive significant influence of the customer engagement variable toward customer value Thus the second hypothesis is accepted
3 The third hypothesis relationship quality significantly influence customer value Based on the PLS calculations result in Table 9 testing the third hypothesis about the
influence of relationship quality on customer value it is obtained the value of the estimated coefficient (β) of 0507 with t statistic value of 2383 This result is higher than t-table value which is only 196 So it can be concluded that there is a positive significant influence of the relationship quality variable on customer value Thus the third hypothesis is accepted Sobel Test Results
Sobel test is conducted by testing the strength of the indirect influence of independent variables (customer engagement) toward dependent variable (customer value) through intervening variable (relationship quality) This test is done by Online Sobel Test Calculator for the Significance of Mediation by entering the regression coefficient and standard error values of the customer engagement variables to the relationship quality and the regression coefficient and standard error values of the relationship quality variable to customer value in which it gets the result as follows
Figure 4
Sobel Test Results Sobel test shown in Figure 4 shows the Sobel test statistic value of 23797 with a one-
side significance value of 0009 because the significance value is lt005 therefore it can be said that the relationship quality is the intervening variable of the correlation of customer engagement and customer value
E DISCUSSION In this study Customer engagement positively influences relationship quality it means
that the better the customer engagement the better the relationship quality between the customer and the company By involving customers such as Inviting them to share about the things to improve the performance of the company or promote cooperation between companies and customers (share) inviting customers to know more about the company (learning) motivating customers to inform others about the companys products or services (advocating) motivating customers to promote products services of the company (socialization) and motivating customers to contribute ideas that might contribute to the improvement of performance and service of the companies (co-developing) then it will be able to create a good quality relationships between the companies and customers
1st Piksi International Conference on Knowledge and Sciences 2014 Page | 16
This is in line with the findings by Saks (2006) which states that the employee engagement has been implemented as a means to explore and explain the organizational commitment and behaviors of the members and also applied as a predictor of customer ratings toward the companies Furthermore the finding of the study is also in accordance with the opinion of Salanova et al (2005) that engagement has also been recognized as a way to improve morale cohesion and psychological relationship between the customer and the company or organization
The quality of a good relationship is manifested by the growth of customer trust the presence of customer commitment to always use the companys services and customer satisfaction with the overall service provided by the company
Customer engagement in this study positively contribute to customer value the better the company does customer engagement efforts it will contribute to higher customer value Involving customers such as inviting them to share about the things to improve the performance of the company or promote cooperation between companies and customers (share) inviting customers to know more about the company (learning) motivating the customer to inform others about product and service of companies (advocating) motivating customers to promote products services company (socialization) and motivating customers to contribute ideas to improve the performance and service companies (co-developing) will be able to create high customer value
The studys findings are in line with the study conducted by Li and Dant in Vivek (2011) which concludes that the intensity of customer engagement will be positively related to the value received by customers By the time customers are treated very well and considered as part of the company it will raise the principle of reciprocity in which the customer will give the good attitude as good as what they have received by the company (Bagozzidalam Vivek 2011)
Companies Interaction to customers via initiative engagement strategies will make the reciprocity norm appear to customersrsquo engagement If the company successfully engage customers customers will recognize the benefits received and give return values to indicate behavioral intentions In the return of value received customers will have a good faith and affective commitment to the organization and may be willing to develop a strong relationship with the organization
Moreover in this study relationship quality give positive influence on customer value The better relationship quality the better the customer value will be It means that relationship quality is one of the important factors to increase customer value Relationship quality is needed to drive steer cultivate and maintain customer behavior towards the achievement of better corporate performance
Relationship quality in this study also serves as a mediator of the influence of customer engagement toward customer value Customer value will be stronger with the role of relationship quality in it Starting from involving customers by sharing it will create a good relationship between the company and customers Then One of the good form of relationship is the emergence of self-confidence of the customers toward the the company Based on these good relationships created customers will give a positive assessment to the company by the form of manifesting customer awareness of the companys survival (affective commitment) which in this study seems to show the highest loading value of all indicators of customer value
Empirically findings of this study support the finding by John (2008) that concludes that the success in fostering good relationship with customers is actually a beneficial thing that can bring profit for both parties The relationship created between the company and the customer will make communication better
After feeling satisfied and having created a good relationship then the customers will tell the companyrsquos advantage to others The information spread by the customer can build a good image about the company and it can bring in new clients or customers for the companyBy a good relationship not only company but also customers will get profits and advantages Benefits and advantages gained by customers also vary eg special price given by the company and get extra service for being a loyal customer
F CONCLUSION Based on the analysis and discussion in this study it obtains a general conclusion as
follows
1st Piksi International Conference on Knowledge and Sciences 2014 Page | 17
1) Customer engagement have a positive significant influence on relationship quality It means that the better the customer engagement the better the relationship quality will be and the increased sharing programs between companies and customers is a way that can be used to improve customer engagement and gain trust of customers to be better 2) Customer engagement have a positive significant influence on customer value It means that the better the customer engagement the better the customer value will be and the improvement of sharing programs between companies and customers is a way that can be used to improve customer engagement and to establish customer awareness of the companiesrsquo survival company (affective commitment) And 3) Relationship quality have a positive significant influence on customer value it means that the better the relationship quality the better the customer value and establishing trust of the customer is a way to improve the quality of relationships and increase customer awareness of companies survival (affective commitment)
This study has limitations that is the study results can not be generalized beyond the sample of the study because the respondents used is only limited to customers of PT Siba Courier Indonesia representing Semarang and Jakarta city Thus to conduct similar study involving all customers of PT Siba Courier Indonesia spreading in many cities around Indonesia still need to be considered
BIBLIOGRAPHY Brodie JR Ilic A Hollebeek L 2011 Consumer engagement in a virtual brand community An
exploratory analysis Journal of Business Research xxx (2011) xxxndashxxx Cateora Philip R Graham John L 2007 Pemasaran Internasional 13th Edition Jakarta Salemba
Empat Chan S 2003 Relationship Marketing Inovasi Pemasaran yang Membuat Pelanggan Bertekuk
Lutut Jakarta Penerbit PT Gramedia Pustaka Utama Copulsky J R and M J Wolf 1990 Relationship Marketing Positioning for the Future The
Journal of Business Strategy Fandy Tjiptono 2005 Pemasaran Jasa 1st Edition Malang Bayu Media Publishing Fuad Masrsquoud 2004 Survai Diagnosis Organisasional Konsep dan Aplikasi Semarang Diponegoro
University Press Groumlnroos C 1994 ldquoFrom Marketing Mix to Relationship Marketing Towards a Paradigm Shift in
Marketingrdquo Management Decision Vol 32 No 2 pp 4-20 Hollebeek LD 2009 Demystifying Customer Engagement Toward the Development of a
Conceptual Model AMZNAC 2009 1-9 Imam Ghozali 2006 Structural Equation Modeling Metode Alternatif denganPLS (Kedua ed)
Semarang Diponegoro University Press Kotler Philip amp Keller Kevin Lane 2009 Manajemen Pemasaran Edisi 13 Jilid 2 Jakarta PT
Indeks Kotler Philip 2007 Manajemen Pemasaran Analisis Perencanaan Pengendalian Prentice Hall
Edisi Bahasa Indonesia Jakarta Salemba Empat Kumar V Lerzan A Bas D Rajkumar V Thorsten W dan Sebastian T 2010 Undervalued or
Overvalued Customers Capturing Total Customer engagement Value Journal of Service Research 13(3) 297-310
MacInnis dan Mello Jefrey A 2001 StrategicHuman Resources Management International Edition South Western Publishing Ohio
Mowen John C dan Minor M 2002 Perilaku Konsumen Jilid 1 Edisi Kelima (terjemahan) Jakarta Erlangga
Nammir Darman Sulaiman Sadiq Bayar Mohamed Rasheed Marane Aree Mohammed Ali 2012 Determine the Role of Customer engagement on Relationship Quality and Relationship Performance European Journal of Business and Management wwwiisteorgISSN 2222-1905 (Paper) ISSN 2222-2839 (Online) Vol 4 No11 2012
Peter Paul J and Olson Jerry C 2002Perilaku Konsumen dan StrategiPemasaran Edisi ke Empat (Terjemahan) Jakarta Penerbit Erlangga
1st Piksi International Conference on Knowledge and Sciences 2014 Page | 18
Rustono 2010 Faktor-faktor yang Mempengaruhi Implementasi Customer Relationship Mangement (CRM) untuk Meningkatkan Loyalitas PelangganRagamJurnal Pengembangan Humaniora Vol 10 No 3 Desember 2010 153-160
Ryals L and S Knox 2001 ldquoCross-Functional Issue in the Implementation of Relationship Marketing Through Customer relationship Managementrdquo European Management Journal Vol 19 No 5 pp 534-542
Setiadi J Nugroho 2005 Perilaku Konsumen Jakarta Kencana Sugiyono 2008 Metode Penelitian Kuantitatif Kualitatif dan RampD Bandung Alfabeta Tjahyadi RA 2010Membangun Hubungan Jangka Panjang Pelanggan Melalui Relationship
Marketing httpmajourmaranathaeduindexphpjurnal-manajemenarticleview178 Vivek SD 2011 A Scale Of Consumer Engagement Disertasi Department of Management and
Marketing in the Graduate School of The University of Alabama Yahya Y 2008 Pengaruh Customer Relationship Management (CRM) dalam Meningkatkan loyalitas
Pelanggan httpfebudiluhuracidwp-contentuploads201105Pengaruh-Customer-Relationship-Management-Dalam-Meningkatka-Loyalitas-Pelanggan-Yohanes-Yahyapdf
- -
(0)
I~ 1 PICKS 2014 Committee ISSN 2407 ~ l722 ~ POLITEKNIK PIKSI GANESHA Gedung Rektoratmiddotmiddot Kampus 1 JI jend Gatot Stibroto No 301 Bandung 40274 9171111~JJ
Published by LPPM Pollteknlk Piksi GaneshO
-Batidung lndonesIClmiddot
1st Piksi International Conference on Knowledge and Sciences 2014 Page | 16
This is in line with the findings by Saks (2006) which states that the employee engagement has been implemented as a means to explore and explain the organizational commitment and behaviors of the members and also applied as a predictor of customer ratings toward the companies Furthermore the finding of the study is also in accordance with the opinion of Salanova et al (2005) that engagement has also been recognized as a way to improve morale cohesion and psychological relationship between the customer and the company or organization
The quality of a good relationship is manifested by the growth of customer trust the presence of customer commitment to always use the companys services and customer satisfaction with the overall service provided by the company
Customer engagement in this study positively contribute to customer value the better the company does customer engagement efforts it will contribute to higher customer value Involving customers such as inviting them to share about the things to improve the performance of the company or promote cooperation between companies and customers (share) inviting customers to know more about the company (learning) motivating the customer to inform others about product and service of companies (advocating) motivating customers to promote products services company (socialization) and motivating customers to contribute ideas to improve the performance and service companies (co-developing) will be able to create high customer value
The studys findings are in line with the study conducted by Li and Dant in Vivek (2011) which concludes that the intensity of customer engagement will be positively related to the value received by customers By the time customers are treated very well and considered as part of the company it will raise the principle of reciprocity in which the customer will give the good attitude as good as what they have received by the company (Bagozzidalam Vivek 2011)
Companies Interaction to customers via initiative engagement strategies will make the reciprocity norm appear to customersrsquo engagement If the company successfully engage customers customers will recognize the benefits received and give return values to indicate behavioral intentions In the return of value received customers will have a good faith and affective commitment to the organization and may be willing to develop a strong relationship with the organization
Moreover in this study relationship quality give positive influence on customer value The better relationship quality the better the customer value will be It means that relationship quality is one of the important factors to increase customer value Relationship quality is needed to drive steer cultivate and maintain customer behavior towards the achievement of better corporate performance
Relationship quality in this study also serves as a mediator of the influence of customer engagement toward customer value Customer value will be stronger with the role of relationship quality in it Starting from involving customers by sharing it will create a good relationship between the company and customers Then One of the good form of relationship is the emergence of self-confidence of the customers toward the the company Based on these good relationships created customers will give a positive assessment to the company by the form of manifesting customer awareness of the companys survival (affective commitment) which in this study seems to show the highest loading value of all indicators of customer value
Empirically findings of this study support the finding by John (2008) that concludes that the success in fostering good relationship with customers is actually a beneficial thing that can bring profit for both parties The relationship created between the company and the customer will make communication better
After feeling satisfied and having created a good relationship then the customers will tell the companyrsquos advantage to others The information spread by the customer can build a good image about the company and it can bring in new clients or customers for the companyBy a good relationship not only company but also customers will get profits and advantages Benefits and advantages gained by customers also vary eg special price given by the company and get extra service for being a loyal customer
F CONCLUSION Based on the analysis and discussion in this study it obtains a general conclusion as
follows
1st Piksi International Conference on Knowledge and Sciences 2014 Page | 17
1) Customer engagement have a positive significant influence on relationship quality It means that the better the customer engagement the better the relationship quality will be and the increased sharing programs between companies and customers is a way that can be used to improve customer engagement and gain trust of customers to be better 2) Customer engagement have a positive significant influence on customer value It means that the better the customer engagement the better the customer value will be and the improvement of sharing programs between companies and customers is a way that can be used to improve customer engagement and to establish customer awareness of the companiesrsquo survival company (affective commitment) And 3) Relationship quality have a positive significant influence on customer value it means that the better the relationship quality the better the customer value and establishing trust of the customer is a way to improve the quality of relationships and increase customer awareness of companies survival (affective commitment)
This study has limitations that is the study results can not be generalized beyond the sample of the study because the respondents used is only limited to customers of PT Siba Courier Indonesia representing Semarang and Jakarta city Thus to conduct similar study involving all customers of PT Siba Courier Indonesia spreading in many cities around Indonesia still need to be considered
BIBLIOGRAPHY Brodie JR Ilic A Hollebeek L 2011 Consumer engagement in a virtual brand community An
exploratory analysis Journal of Business Research xxx (2011) xxxndashxxx Cateora Philip R Graham John L 2007 Pemasaran Internasional 13th Edition Jakarta Salemba
Empat Chan S 2003 Relationship Marketing Inovasi Pemasaran yang Membuat Pelanggan Bertekuk
Lutut Jakarta Penerbit PT Gramedia Pustaka Utama Copulsky J R and M J Wolf 1990 Relationship Marketing Positioning for the Future The
Journal of Business Strategy Fandy Tjiptono 2005 Pemasaran Jasa 1st Edition Malang Bayu Media Publishing Fuad Masrsquoud 2004 Survai Diagnosis Organisasional Konsep dan Aplikasi Semarang Diponegoro
University Press Groumlnroos C 1994 ldquoFrom Marketing Mix to Relationship Marketing Towards a Paradigm Shift in
Marketingrdquo Management Decision Vol 32 No 2 pp 4-20 Hollebeek LD 2009 Demystifying Customer Engagement Toward the Development of a
Conceptual Model AMZNAC 2009 1-9 Imam Ghozali 2006 Structural Equation Modeling Metode Alternatif denganPLS (Kedua ed)
Semarang Diponegoro University Press Kotler Philip amp Keller Kevin Lane 2009 Manajemen Pemasaran Edisi 13 Jilid 2 Jakarta PT
Indeks Kotler Philip 2007 Manajemen Pemasaran Analisis Perencanaan Pengendalian Prentice Hall
Edisi Bahasa Indonesia Jakarta Salemba Empat Kumar V Lerzan A Bas D Rajkumar V Thorsten W dan Sebastian T 2010 Undervalued or
Overvalued Customers Capturing Total Customer engagement Value Journal of Service Research 13(3) 297-310
MacInnis dan Mello Jefrey A 2001 StrategicHuman Resources Management International Edition South Western Publishing Ohio
Mowen John C dan Minor M 2002 Perilaku Konsumen Jilid 1 Edisi Kelima (terjemahan) Jakarta Erlangga
Nammir Darman Sulaiman Sadiq Bayar Mohamed Rasheed Marane Aree Mohammed Ali 2012 Determine the Role of Customer engagement on Relationship Quality and Relationship Performance European Journal of Business and Management wwwiisteorgISSN 2222-1905 (Paper) ISSN 2222-2839 (Online) Vol 4 No11 2012
Peter Paul J and Olson Jerry C 2002Perilaku Konsumen dan StrategiPemasaran Edisi ke Empat (Terjemahan) Jakarta Penerbit Erlangga
1st Piksi International Conference on Knowledge and Sciences 2014 Page | 18
Rustono 2010 Faktor-faktor yang Mempengaruhi Implementasi Customer Relationship Mangement (CRM) untuk Meningkatkan Loyalitas PelangganRagamJurnal Pengembangan Humaniora Vol 10 No 3 Desember 2010 153-160
Ryals L and S Knox 2001 ldquoCross-Functional Issue in the Implementation of Relationship Marketing Through Customer relationship Managementrdquo European Management Journal Vol 19 No 5 pp 534-542
Setiadi J Nugroho 2005 Perilaku Konsumen Jakarta Kencana Sugiyono 2008 Metode Penelitian Kuantitatif Kualitatif dan RampD Bandung Alfabeta Tjahyadi RA 2010Membangun Hubungan Jangka Panjang Pelanggan Melalui Relationship
Marketing httpmajourmaranathaeduindexphpjurnal-manajemenarticleview178 Vivek SD 2011 A Scale Of Consumer Engagement Disertasi Department of Management and
Marketing in the Graduate School of The University of Alabama Yahya Y 2008 Pengaruh Customer Relationship Management (CRM) dalam Meningkatkan loyalitas
Pelanggan httpfebudiluhuracidwp-contentuploads201105Pengaruh-Customer-Relationship-Management-Dalam-Meningkatka-Loyalitas-Pelanggan-Yohanes-Yahyapdf
- -
(0)
I~ 1 PICKS 2014 Committee ISSN 2407 ~ l722 ~ POLITEKNIK PIKSI GANESHA Gedung Rektoratmiddotmiddot Kampus 1 JI jend Gatot Stibroto No 301 Bandung 40274 9171111~JJ
Published by LPPM Pollteknlk Piksi GaneshO
-Batidung lndonesIClmiddot
1st Piksi International Conference on Knowledge and Sciences 2014 Page | 17
1) Customer engagement have a positive significant influence on relationship quality It means that the better the customer engagement the better the relationship quality will be and the increased sharing programs between companies and customers is a way that can be used to improve customer engagement and gain trust of customers to be better 2) Customer engagement have a positive significant influence on customer value It means that the better the customer engagement the better the customer value will be and the improvement of sharing programs between companies and customers is a way that can be used to improve customer engagement and to establish customer awareness of the companiesrsquo survival company (affective commitment) And 3) Relationship quality have a positive significant influence on customer value it means that the better the relationship quality the better the customer value and establishing trust of the customer is a way to improve the quality of relationships and increase customer awareness of companies survival (affective commitment)
This study has limitations that is the study results can not be generalized beyond the sample of the study because the respondents used is only limited to customers of PT Siba Courier Indonesia representing Semarang and Jakarta city Thus to conduct similar study involving all customers of PT Siba Courier Indonesia spreading in many cities around Indonesia still need to be considered
BIBLIOGRAPHY Brodie JR Ilic A Hollebeek L 2011 Consumer engagement in a virtual brand community An
exploratory analysis Journal of Business Research xxx (2011) xxxndashxxx Cateora Philip R Graham John L 2007 Pemasaran Internasional 13th Edition Jakarta Salemba
Empat Chan S 2003 Relationship Marketing Inovasi Pemasaran yang Membuat Pelanggan Bertekuk
Lutut Jakarta Penerbit PT Gramedia Pustaka Utama Copulsky J R and M J Wolf 1990 Relationship Marketing Positioning for the Future The
Journal of Business Strategy Fandy Tjiptono 2005 Pemasaran Jasa 1st Edition Malang Bayu Media Publishing Fuad Masrsquoud 2004 Survai Diagnosis Organisasional Konsep dan Aplikasi Semarang Diponegoro
University Press Groumlnroos C 1994 ldquoFrom Marketing Mix to Relationship Marketing Towards a Paradigm Shift in
Marketingrdquo Management Decision Vol 32 No 2 pp 4-20 Hollebeek LD 2009 Demystifying Customer Engagement Toward the Development of a
Conceptual Model AMZNAC 2009 1-9 Imam Ghozali 2006 Structural Equation Modeling Metode Alternatif denganPLS (Kedua ed)
Semarang Diponegoro University Press Kotler Philip amp Keller Kevin Lane 2009 Manajemen Pemasaran Edisi 13 Jilid 2 Jakarta PT
Indeks Kotler Philip 2007 Manajemen Pemasaran Analisis Perencanaan Pengendalian Prentice Hall
Edisi Bahasa Indonesia Jakarta Salemba Empat Kumar V Lerzan A Bas D Rajkumar V Thorsten W dan Sebastian T 2010 Undervalued or
Overvalued Customers Capturing Total Customer engagement Value Journal of Service Research 13(3) 297-310
MacInnis dan Mello Jefrey A 2001 StrategicHuman Resources Management International Edition South Western Publishing Ohio
Mowen John C dan Minor M 2002 Perilaku Konsumen Jilid 1 Edisi Kelima (terjemahan) Jakarta Erlangga
Nammir Darman Sulaiman Sadiq Bayar Mohamed Rasheed Marane Aree Mohammed Ali 2012 Determine the Role of Customer engagement on Relationship Quality and Relationship Performance European Journal of Business and Management wwwiisteorgISSN 2222-1905 (Paper) ISSN 2222-2839 (Online) Vol 4 No11 2012
Peter Paul J and Olson Jerry C 2002Perilaku Konsumen dan StrategiPemasaran Edisi ke Empat (Terjemahan) Jakarta Penerbit Erlangga
1st Piksi International Conference on Knowledge and Sciences 2014 Page | 18
Rustono 2010 Faktor-faktor yang Mempengaruhi Implementasi Customer Relationship Mangement (CRM) untuk Meningkatkan Loyalitas PelangganRagamJurnal Pengembangan Humaniora Vol 10 No 3 Desember 2010 153-160
Ryals L and S Knox 2001 ldquoCross-Functional Issue in the Implementation of Relationship Marketing Through Customer relationship Managementrdquo European Management Journal Vol 19 No 5 pp 534-542
Setiadi J Nugroho 2005 Perilaku Konsumen Jakarta Kencana Sugiyono 2008 Metode Penelitian Kuantitatif Kualitatif dan RampD Bandung Alfabeta Tjahyadi RA 2010Membangun Hubungan Jangka Panjang Pelanggan Melalui Relationship
Marketing httpmajourmaranathaeduindexphpjurnal-manajemenarticleview178 Vivek SD 2011 A Scale Of Consumer Engagement Disertasi Department of Management and
Marketing in the Graduate School of The University of Alabama Yahya Y 2008 Pengaruh Customer Relationship Management (CRM) dalam Meningkatkan loyalitas
Pelanggan httpfebudiluhuracidwp-contentuploads201105Pengaruh-Customer-Relationship-Management-Dalam-Meningkatka-Loyalitas-Pelanggan-Yohanes-Yahyapdf
- -
(0)
I~ 1 PICKS 2014 Committee ISSN 2407 ~ l722 ~ POLITEKNIK PIKSI GANESHA Gedung Rektoratmiddotmiddot Kampus 1 JI jend Gatot Stibroto No 301 Bandung 40274 9171111~JJ
Published by LPPM Pollteknlk Piksi GaneshO
-Batidung lndonesIClmiddot
1st Piksi International Conference on Knowledge and Sciences 2014 Page | 18
Rustono 2010 Faktor-faktor yang Mempengaruhi Implementasi Customer Relationship Mangement (CRM) untuk Meningkatkan Loyalitas PelangganRagamJurnal Pengembangan Humaniora Vol 10 No 3 Desember 2010 153-160
Ryals L and S Knox 2001 ldquoCross-Functional Issue in the Implementation of Relationship Marketing Through Customer relationship Managementrdquo European Management Journal Vol 19 No 5 pp 534-542
Setiadi J Nugroho 2005 Perilaku Konsumen Jakarta Kencana Sugiyono 2008 Metode Penelitian Kuantitatif Kualitatif dan RampD Bandung Alfabeta Tjahyadi RA 2010Membangun Hubungan Jangka Panjang Pelanggan Melalui Relationship
Marketing httpmajourmaranathaeduindexphpjurnal-manajemenarticleview178 Vivek SD 2011 A Scale Of Consumer Engagement Disertasi Department of Management and
Marketing in the Graduate School of The University of Alabama Yahya Y 2008 Pengaruh Customer Relationship Management (CRM) dalam Meningkatkan loyalitas
Pelanggan httpfebudiluhuracidwp-contentuploads201105Pengaruh-Customer-Relationship-Management-Dalam-Meningkatka-Loyalitas-Pelanggan-Yohanes-Yahyapdf
- -
(0)
I~ 1 PICKS 2014 Committee ISSN 2407 ~ l722 ~ POLITEKNIK PIKSI GANESHA Gedung Rektoratmiddotmiddot Kampus 1 JI jend Gatot Stibroto No 301 Bandung 40274 9171111~JJ
Published by LPPM Pollteknlk Piksi GaneshO
-Batidung lndonesIClmiddot
- -
(0)
I~ 1 PICKS 2014 Committee ISSN 2407 ~ l722 ~ POLITEKNIK PIKSI GANESHA Gedung Rektoratmiddotmiddot Kampus 1 JI jend Gatot Stibroto No 301 Bandung 40274 9171111~JJ
Published by LPPM Pollteknlk Piksi GaneshO
-Batidung lndonesIClmiddot