DETERMINANTS OF IMPULSE BUYING BEHAVIOR

THROUGH INSTAGRAM ADS

By

Ulfah Nurhasanah
015201500118

A Skripsi presented to the

Faculty of Business President University
in Partial Fulfillment of the Requirements for
Bachelor Degree in Business Administration

January 2018
 PANEL OF EXAMINERS
APPROVAL SHEET

The Panel of Examiners declare that the skripsi entitled “DETERMINANTS OF

IMPULSE BUYING BEHAVIOR THROUGH INSTAGRAM ADS” that was

submitted by Ulfah Nurhasanah majoring in Business Administration from the

Faculty of Business was assessed and approved to have passed the Oral

Examinations on January 2018.

Dr. Ir. Farida Komalasari, M. Si.

Chair – Panel of Examiners

Ir. Eko Ganiarto, M. M.

Examiner I

Prof. Dr. Ajay Chauhan

Examiner II

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PLAGIARISM DOCUMENT

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 CONSENT FOR INTELLECTUAL PROPERTY RIGHT

Determinants of Impulse Buying Behavior Through

Title of Skripsi: Instagram Ads

1. The Author hereby assigns to President University the copyright to the

Contribution named above whereby the University shall have the exclusive

right to publish the Contribution and translations of it wholly or in part

throughout the world during the full term of copyright including renewals

and extensions and all subsidiary rights.

2. The Author retains the right to re-publish the preprint version of the

Contribution without charge and subject only to notifying the University of

the intent to do so and to ensuring that the publication by the University is

properly credited and that the relevant copyright notice is repeated verbatim.

3. The Author retains moral and all proprietary rights other than copyright,

such as patent and trademark rights to any process or procedure described

in the Contribution.

4. The Author guarantees that the Contribution is original, has not been

published previously, is not under consideration for publication elsewhere

and that any necessary permission to quote or reproduce illustrations from

another source has been obtained (a copy of any such permission should be

sent with this form).

5. The Author guarantees that the Contribution contains no violation of any

existing copyright or other third-party right or material of an obscene,

indecent, libellous or otherwise unlawful nature and will indemnify the

University against all claims arising from any breach of this warranty.

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6. The Author declares that any named person as co-author of the Contribution

is aware of this agreement and has also agreed to the above warranties.

Name : Ulfah Nurhasanah

Date :

Signature:

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 ACKNOWLEDGEMENT

Alhamdulillah, first of all my greatest gratitude is willing to be expressed to

Allah SWT, the Almighty. Without His blessing, guidance and encouragement,

therefore the researcher might not be able to finish upon this research properly. And

my next great gratitude goes toward Prophet Muhammad SAW, for his love and

care, to bring his ummah from the darkness era to the bright and great days fulfill

with great education.

This skripsi entitled “DETERMINANTS IMPULSE BUYING

BEHAVIOR THROUGH INSTAGRAM ADS” is presented to the Faculty of

Business, President University in partial fulfillment of the requirments for bachelor

degree in Economic, major in Business Administration. Researcher would like to

take this opportunity to thank all of people involved during thesis preparation until

researcher able to finish it well. Furthermore, because of the support and kindess,

my great pleasure, appreciation, and thankfulness would be addressed to the

following people :

1. Titin Supriatin, my greates Mom in the world with her encourages, love,

and care toward me, and unstoppable support and prayer.

2. Indah Nurhidayah, my one and only sister who always be on my side and

support me, taking care of me when I am down during my research, making

fun of me and for being the best siblings ever.

3. Prof. Dr. Ajay Chauhan, the best thesis advisor. Thank you very much for

patiently giving me guidance, advises, and compassion. The honor is mine

for having you as my thesis advisor.

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4. Mr. Suresh Kumar, who gave me knowledge on Retail Business in which I

treasured the most. I am grateful to become one of the students you taught

and thank you for your supervision, kindness, and support during my study.

5. Mr. Elkana Thimoty, Mrs. Kunthi Kusumawardani, Mrs. Ir. Farida

Komalasari, Mr. Adhi S. and other lecturers of President University who

have taught me and give me advises during my study in the university.

Thank you very much for your supervision and kindness.

6. All lectures in President University, which I cannot mention one by one.

Thank you for you kindest in guiding and helping me during my study in

campus.

7.

Cikarang, Indonesia, June 2019

Ulfah Nurhasanah

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 TABLE OF CONTENTS

PANEL OF EXAMINERS ...................................................................................... i

PLAGIARISM DOCUMENT................................................................................. ii
CONSENT FOR INTELLECTUAL PROPERTY RIGHT ................................. viii
ACKNOWLEDGEMENT ...................................................................................... x
TABLE OF CONTENTS ...................................................................................... xii
LIST OF APPENDICES ....................................................................................... xv
LIST OF TABLES ............................................................................................... xvi
LIST OF FIGURES ............................................................................................ xvii
ABSTRACT ....................................................................................................... xviii
CHAPTER I – INTRODUCTION .......................................................................... 1
1.1 Background .......................................................................................... 1
1.2 Significance of the Study..................................................................... 7
1.3 Limitation ............................................................................................ 8
1.4 Organization of the Skripsi .................................................................. 8
CHAPTER II – LITERATURE REVIEW .............................................................. 9
2.1 Introduction ......................................................................................... 9
2.2 Purchase Intention ............................................................................... 9
2.3 Existing Theories Explaining Purchase Intention ............................. 10
2.3.1 Theory of Reasoned Action (TRA) ...................................................... 10
2.3.2 Theory of Planned Behavior (TPB) ..................................................... 11
2.3.3 American Customer Satisfaction Index (ACSI) ................................. 12
2.3.3.1 Customer Expectation..................................................................... 13
2.3.3.2 Service Quality ............................................................................... 14
2.3.4 European Customer Satisfaction Index (ECSI) .................................. 16
2.3.4.1 Brand Reputation ............................................................................ 17
2.4 Research Gap ..................................................................................... 18
2.5 Summary............................................................................................ 20
CHAPTER III – RESEARCH METHODS .......................................................... 21
3.1 Introduction ....................................................................................... 21

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 3.2 Research Design ................................................................................ 21
3.3 Research Framework ......................................................................... 22
3.4 Hypothesis ......................................................................................... 22
3.5 Operational Definition of Variables .................................................. 22
3.6 Research Instruments ......................................................................... 23
3.6.1 Questionnaire .......................................................................................... 23
3.6.2 Reliability and Validity of the Research Instruments ........................ 24
3.6.2.1 Reliability ....................................................................................... 24
3.6.2.2 Validity ........................................................................................... 25
3.7 Sampling Method .............................................................................. 27
3.8 Data Analysis Plan............................................................................. 28
3.9 Summary............................................................................................ 29
CHAPTER IV – DATA ANALYSIS ................................................................... 30
4.1 Introduction ....................................................................................... 30
4.2 Descriptive Analysis – Total Samples ............................................... 30
4.3 Independent Sample T-Test ............................................................... 31
4.4 Inferential Analysis............................................................................ 31
4.4.1 Service Quality towards Purchase Intention ....................................... 32
4.4.2 Customer Expectation towards Purchase Intention ........................... 32
4.4.3 Joint Impact of Service Quality and Customer Expectation towards
Purchase Intention ................................................................................. 33
4.5 Analysis of Moderating Influence ..................................................... 34
4.5.1 Brand Reputation towards Purchase Intention ................................... 34
4.5.2 Moderating Influence of Brand Reputation on Overall Impact of
Determinants........................................................................................... 35
4.5.3 Moderating Influence by Hayes Method ............................................. 37
4.6 Summary............................................................................................ 38
CHAPTER V – CONCLUSION ........................................................................... 40
5.1 Introduction ....................................................................................... 40
5.2 Conclusion ......................................................................................... 40
5.3 Implications for Transport Industry ................................................... 42
5.4 Limitations of this Study ................................................................... 42

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 5.5 Future Path ......................................................................................... 43
REFERENCES...................................................................................................... 44
APPENDICES ...................................................................................................... 51
TABLES ................................................................................................................ 85
FIGURES .............................................................................................................. 99

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 LIST OF APPENDICES

APPENDIX 1 – QUESTIONNAIRE ................................................................. 51

APPENDIX 2 – QUESTIONNAIRE RESULT ................................................. 57

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 LIST OF TABLES

Table 3.1: Sources of Research Instrument........................................................ 85

Table 3.2: PILOT Test – Reliability Test Result ............................................... 93
Table 3.3: PILOT Test – Principle Component Method Result (Validity Test) 94
Table 4.1: Descriptive Analysis Result .............................................................. 94
Table 4.2: Independent Sample Test of Mean ................................................... 95
Table 4.3: Service Quality on Purchase Intention Regression Test Result ........ 95
Table 4.4: Customer Expectation on Purchase Intention Regression Test Result
........................................................................................................... 95
Table 4.5: Service Quality and Customer Expectation on Purchase Intention
Regression Test Result ...................................................................... 96
Table 4.6: Brand Reputation on Purchase Intention Regression Test Result .... 96
Table 4.7: Multiple Regression Including Moderating Variable ....................... 97
Table 4.8: Service Quality and Customer Expectation towards Purchase
Intention Moderated by Brand Reputation Hayes Method Result .... 97
Table 4.10: Hypotheses Conclusions ................................................................. 98

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 LIST OF FIGURES

Figure 2.1 Theory of Reasoned Action Model .................................................. 99

Figure 2.2 Theory of Planned Behavior Model ................................................. 99
Figure 2.3 American Customer Satisfaction Index Model............................... 100
Figure 2.4 European Customer Satisfaction Index Model ............................... 100
Figure 3.1 Research Framework ...................................................................... 101

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 ABSTRACT

Purpose – This paper aims to explore the phenomenon of impulse buying in the

social media. The online and offline channels are compared to determine which is

perceived as leading to more impulsive buying.

Design/ Methodology/ Approach – Based on the literature review, the

determinants identified were customer expectation and service quality. The review

of the literature indicated influenced of brand reputation as the moderator. The data

were collected from 384 respondents of Jakarta, Depok, Bogor Tangerang, Bekasi.

The questions were sourced from established studies and customized to the context

of this study and it distributed digitally to unknown respondents.

Findings – The result indicates that service quality and customer expectation have

a significant impact on customer purchase intention, with service quality as the

prominent variable. Additionally, Brand reputation was found to have a significant

moderating impact on purchase intention.

Originality/ Value – The author believes that this is the first study using a

simplified model of Purchase Intention adapted from previous models in

JABODETABEK, Indonesia’s taxi services context.

Keywords: Uber, Blue Bird, Customer Purchase Intention, Service Quality,

Customer Expectation, Brand Reputation, Transportation

xviii
 CHAPTER I
INTRODUCTION

1.1 Background

The need to use transportation becomes one of the most basic needs of human since

all primary needs and pleasure can be reached by people easily (Wessel, 2012).

With the increasing need for traveling, the number of cars bought is increasing as

well. In 2013, the total numbers of land transportation in Indonesia reach 104.11

million units (Badan Pusat Statistik, 2014), whereas, in 2015, the number increases

become 121.39 million units (DataBoks, 2017). In Jakarta only, the number of cars

and motorcycles keep increasing by 12% annually or 5,000 – 6,000 units daily,

whereas the development of infrastructure itself increase only by 0.01% annually

(Ramadhan, 2015). This situation explains the traffic jams that are always

occurring in Indonesia.

To avoid the traffic jams, people nowadays choose using public transportation

rather than driving. In case of Indonesia, the primary public transportation is by

taxis, motorcycles or buses due to famous congestion on the roads. Taxi is the most

preferred transportations customer used due to its convenience and comfort which

the taxi provided, where motorcycles don’t. By using taxi service, the driver could

fetch the customers from their home and drive them to their destination directly;

without have to go to a specific terminal or station like buses do.

Blue Bird, one of the taxi brands in Indonesia, has operated in Indonesia for more

than 40 years with several achievements that make them the top of the market. Blue

Bird became the Most Inspiring Brand in 2012 by Superbrands in taxi service

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provider category (Blue Bird Group, 2012). In 2014, Blue Bird achieved Business

Excellence Award 2014 in taxi category (Kabar Bisnis, 2014).

Due to development and advancement of technology, a new type of transportation,

which is online booking transportation, appears. Uber, one of the online booking

taxi brands, is a company headquartered in America. The company offers a taxi

service where the customer could use or book via online, yet still receive cheaper

price than normal taxi does. Uber provides an excellent offer for its drivers, which

result in the big amount of people interested to join as Uber driver. Hence, the

numbers of cars in Uber umbrella keeps increasing, in which the company uses to

maintain or improve their performance. With more than 5 years, Uber itself has

gained $5.9 billion and its value reached $50 billion globally (Bernhard Jr, 2015).

In 2016, in Indonesia, Uber obtained 60 million orders in a year and 603.000.005

KM of trip distance which is equal to 15,000 times of world traveling (Damar, 2016;

Pratama, 2016).

By using online booking transportation, the driver could fetch the customers from

their home, using only with their phone and could see their waiting time to prepare

themselves. This benefit makes people start to use the online booking transportation

services more instead of using conventional taxis to deliver themselves to their

destination. Because of this situation, controversies have taken place between

online booking and conventional transportation, which cause an immobilize

situation and traffic jams in the areas. (Rubrik, 2016; Sindonews.com, 2017)

To ensure that this controversy decrease, the Ministry of Transportation releases a

Regulation of the Minister of Transportation Number 26 of 2017 which later is

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revised become Minister Regulation Number 108 of the Year 2017 and

implemented since 1st November 2017 (Idris, 2017; Ika & Fauzi, 2017). The

regulation mainly focused on the limitation of the quota of the operated vehicles,

same level tariff limits for both kinds of taxi services and law-based ownership

licensed or called as Surat Tanda Nomor Kendaraan/ STNK (Ayuwuragil, 2017).

Seeing these regulations, Business Competition Supervisory Commission (KPPU)

has suggested that the Ministry of Transportation should revise the tariff limits and

should remove the regulation on vehicle quota as well as the law-based STNK. The

justification is that the regulation itself could affect the market situation, inflation,

business, and so on. (Noviansyah, 2017)

These regulations of transportation surely could ease the competition on these two

kinds of transportation; however, it doesn’t fully favor the customers. A

transportation expert stated that the regulation doesn’t protect the interest of the

service users and lack of customer aspiration with no further study on the effect of

the regulation on the service provider, the drivers and the customers (Usman, 2017;

CNN Indonesia, 2017). Considering these facts, it is shown that the government

doesn’t really consider the customer during the development of the regulations. It

is logic that a government should release regulations that favor its people’s

prosperity because the people or the customers are the voters of the government.

With the almost same price tariff level and a limited number of operated cars, it is

important for the taxi service provider to secure their customer purchase or usage

intention to book and use the service. Therefore, the need to study is to understand

the determinants of purchase intention in the context of taxi services; specifically,

Uber and Blue Bird services, when the government regulation is implemented.

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With a limited number of taxies and almost same tariff level, it is important for the

companies to know the behavior and what makes customer use a certain brand.

Usage intention is important since it is a good measurement on the customers’

actual usage behavior towards any service such as the real action of purchasing

(Chen & Lee, 2015; Soltani, Esfidani, Jandaghi, & Soltaninejad, 2016). The term

purchase and usage could be used interchangeably in this study because, in the

context of services, the usage is same as purchase. Conventionally, the term

purchase is used for product and usage for service. To ensure the customers having

the intention to purchase their brand, obtaining customer satisfaction and loyalty

are very important for both variables could create customer intention to repeated

purchase on the service (Amin, 2016; Yap, Ramayah, & Shahidan, 2012).

The theoretical basis for the purchase intention is provided by a few theories, like

Theory of Reasoned Action (TRA), Theory of Planned Behavior (TPB), American

Customer Satisfaction Index (ACSI), European Customer Satisfaction Index

(ECSI), and others.

First, considering TRA and TPB, it stated that an intention could be influenced by

the attitude towards behavior, subjective norms and perceived behavioral control

(Kim & James, 2016). Attitude towards behavior, subjective norms and perceived

behavioral control could be represented by customer expectation since its nature

describes the expectation (Kim & James, 2016; Nikdavoodi, 2013). Therefore,

customer expectation is more relevant in the context of this study, compared to

attitude, norms, and control from TRA/ TPB. Thus, TRA/ TPB was found not

relevant in the context of this study.

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Another theory, ACSI, which is an improvement on TRA/ TPB model, states that

customer satisfaction is affected by perceived quality, customer expectation, and

perceived value, and later affect loyalty behavior such as repurchase intention or

intention to recommend; hence customer satisfaction is related to purchase intention

(Deng, Yehb, & Sung, 2013). Perceived value is represented by customer

expectation and perceived quality since it is a transformation of both variables

combined. In addition, because this study is on service context, therefore, perceived

quality can be named as service quality in the context of this study. So, the identified

determinants are service quality and customer expectation.

In measuring customer satisfaction in the service industry, an objective

measurement of service quality model called SERVQUAL, is introduced by

Parasuraman, et al. (1985), which assesses the gap between customers’ expectation

and their evaluation on the actual performance when a service is delivered

(Choudhury, 2013; Malik, 2012). It consists of 5 dimensions; Responsiveness,

Assurance, Tangible, Empathy, Reliability, where each variable evaluates the

overall service performance (Prentice, 2013). The current research used this model

in measuring the service quality in two kinds of taxi services and for that, the

questions have been borrowed and adapted from the questionnaire, which is also

known as SERVQUAL.

With the customer expectation and service quality as the antecedents of purchase

intention, it is also relevant to explore if the brand reputation or image plays any

role in purchase intention. An extended model of ACSI, which is ECSI, included

brand image as the moderating influence of customer satisfaction and loyalty

(Turkyilmaz, Oztekin, Zaim, & Demirel, 2013). Brand image is one of the elements

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of brand reputation, in which is easier to be recognized by the customers rather than

brand image (Waddington, Maritz, & Tait, 2014). Therefore, the brand reputation

is valid as a moderating influence.

In conclusion, the research problem for this study is to evaluate whether customer

expectation and service quality have a determining influence and does brand

reputation has a moderating influence on purchase intention. Before establishing

the moderating influence, another problem is to find whether brands influence

differently.

Thus, the research objectives are determined based on the research problem, which

firstly, is to confirm the influence of service quality on purchase intention towards

transportation service. Secondly, is to check the influence of customer expectation

on purchase intention towards transportation service. The third objective of the

study is to confirm the joint influence of service quality and customer expectation

on purchase intention towards transportation service. Fourth, is to check the effect

of brand reputation on the relationship of service quality and customer expectation

on purchase intention towards transportation service. Lastly, to identify whether

there is any significant difference on Uber and Blue Bird customer usage intention.

The research questions are developed to answers the research objectives, which are;

1. Does Uber and Blue Bird customer purchase intention is significantly same?

2. Does service quality influences customer’s purchase intention toward the

transportation service?;

3. Does customer expectation influences customer’s purchase intention toward the

transportation service?;

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4. Do service quality and customer expectation influences the customer purchase

intention jointly toward the transportation service?; and

5. Does brand reputation moderate the relationship between service quality and

customer expectation on customer purchase intention toward the transportation

service?

1.2 Significance of the Study

The current research could give 2 kinds of contribution. Theoretically, the

contribution of this study would be to demonstrate that expectation and service

quality are sufficient to predict purchase intention in a service context, in the

presence of brand reputation. The research develops a purchase intention model

adapted from ACSI and ECSI models, which to determine customer satisfaction

and loyalty by perceived value, customer expectation, perceived quality, and brand

image. Showed by the models, two main independent variables can be recognized

which are customer expectation and perceived quality. Hence, the research provides

a simplified model which use customer expectation and service quality only to

measure the ultimate result of customer loyalty, which is purchase intention. Also,

the research brings brand reputation as an important moderator.

For practical contribution, in a situation where the prices are same, this research

could provide customer insight on the transportation service or any other service

industry. Secondly, the research could highlight why a brand is more popular than

others and how a certain brand could sell more by emphasizing service quality.

Next, this study could highlight the importance of customer expectation for the

brands in securing its customer purchase intention. This research also could help in

7
providing some insights on how the companies’ brand reputation effects the

customers’ decision to repurchase the service.

1.3 Limitation

The scope of this study is limited to transportation sector; Uber and Blue Bird

customers in Jakarta, Bogor, Depok, Tangerang and Bekasi (JABODETABEK)

areas, which approximately 384 customers for both brands together.

JABODETABEK areas are chosen for the geographical limitation of this study

since the central activities and business is focused in these areas. Moreover, it is

determined by considering the traffic jam occurred and service availability of this

brand existed in these areas. Hence, if the research is established, the study can be

repeated elsewhere.

1.4 Organization of the Skripsi

The remaining parts of the paper are organized as follows. In Section 2, the theories

used to develop a purchase intention model are described. Moreover, it covers the

theories considered and variables used in the model. Afterward, in Section 3, it

describes the method used to collect the data for data analysis in Section 4. In this

section as well, the author analyzes and evaluates the collected data. Lastly, Section

5 describes the conclusion and the suggestions for the problem for both service

providers.

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 CHAPTER II
LITERATURE REVIEW

2.1 Introduction

In the previous chapter, the background and the research problem have been

explained. The purpose of the study is to confirm the influence of service quality

and customer expectation towards customer purchase intention moderated by brand

reputation on taxi industry; online booking and conventional taxi. In this chapter, it

describes the theories considered in developing a method to measure purchase

intention. Later, the chapter describes the variables used; purchase intentions,

service quality, customer expectation and brand reputation.

2.2 Purchase Intention

Before purchasing a product or service, customers will do a research to help them

decide on buying the right product or service which will meet their need and want

(Rahim et al., 2016). To understand this behavior, measuring customer purchase

intention is important. Customer purchase intention itself is defined as the

probability of a customer to purchase a certain product or service; and visit the store

again, which is affected by the perceived value or benefits gained by the customers.

It represents the customers’ actual purchase action on a certain product or service;

hence it can help the company to measure the customers’ behavior (Chen & Lee,

2015). Porral and Mangin (2017) defined customer purchase intention as the

propensity of the frequency of customer to purchase on a certain brand

continuously. It is important to measure customer’s purchase intention since it can

help the company to know what customer prefer from their purchase based on their

perceived value on the brand. Chimedtseren & Safari (2016) suggested that

9
purchase intention could help the company to lower the marketing cost, attain new

customers, increase customer’s share and company’s sales, revenue and its

competitive advantage.

Purchase intention has been used by some researchers to measure the customers’

attitude or behavior towards a product or service. Zhou et al., (2017) have tested

purchase intention in China’s online retail business, affected by perceived

information value, perceived usefulness and online retailer brand equity. Another

research done by Kudeshia & Kumar (2017), positive eWOM via Facebook is used

to test the brand attitude and purchase intention in Indian smartphone business. In

addition, Jalilvand & Samiel (2012) research focus on how purchase intention in

Iran automobile industry could be affected by eWOM among customers and brand

image.

Purchase intention could be measured by customers’ attitude or intention towards a

brand on the next time they need the service, or the products (Zhou et al., 2017).

Moreover, Kudeshia & Kumar (2017) stated that the present and the future time of

customers’ intention towards the brand are also important in measuring customer

purchase intention. Furthermore, understanding the customer preference to choose

the brand although there is another brand exists is important as well in measuring

the customer purchase intention (Jalilvand & Samiei, 2012).

2.3 Existing Theories Explaining Purchase Intention

2.3.1 Theory of Reasoned Action (TRA)

The intention is directly linked to the individual actual behavior and represents the

level of individual’s willingness to try and the effort level in implementing the plan

10
to participate in a specific given behavior (Kim & James, 2016). In measuring

customers’ intention and behavior, previous researches have used 2 theories, which

are Theories of Reasoned Action (TRA) and Theory of Planned Behavior (TPB)

(Kim & James, 2016; Liu, Segev, & Villar, 2017). TRA is a theory introduced by

Martin Fishbein and Icek Ajzen in 1980, which suggests that a certain behavior

performance is influenced by personal motivation (Liu, Segev, & Villar, 2017).

The model of TRA is shown in Figure 2.1.

Figure 2.1: Theory of Reasoned Action Model

In the present study, the intention will become the ultimate factor of the research,

since intention represents the motivation and willingness of a person to do a

behavior and is something that could be measured only when it is executed

(Nikdavoodi, 2013). To measure the intention, the model used attitude towards

behavior and subjective norms. Attitude towards behavior is referred to negative or

positive feeling to act or perform a behavior, depend on their evaluation (Kim &

James, 2016). Whereas, the subjective norm is defined as the social weight’s

perceptions or an individual expectation whether it is important or not to perform a

certain behavior (Kim & James, 2016). The critical analysis of TRA is discussed

in the section 2.4 Research Gap.

2.3.2 Theory of Planned Behavior (TPB)

Ajzen later develops and extend the model of TRA, which are called Theory of

Planned Behavior (TPB) in 1991 (Kim & James, 2016). In measuring the behavior,

TPB theory still adapt two dimensions from TRA with a new additional dimension,

which is Perceived Behavioral Control. The model of TPB is shown in Figure 2.2.

11
Figure 2.2: Theory of Planned Behavior Model

Perceived behavioral control is defined as the level easiness and the capabilities an

individual belief, in executing the behavior based on the evaluation on previous

experience and anticipated challenge (Kim & James, 2016; Russo, et al., 2015). The

critical analysis of TPB is discussed in the section 2.4 Research Gap.

2.3.3 American Customer Satisfaction Index (ACSI)

In measuring customer intention to repurchase a service, especially in transportation

service, understanding customer loyalty is important. Customer loyalty is referred

as customers’ long-term commitment that involves re-purchase or revisits action

and positive attitude towards a certain product or service (Turkyilmaz, Oztekin,

Zaim, & Demirel, 2013). In evaluating the customer loyalty, it is better explained

by a theory called American Customer Satisfaction Index (ACSI). ACSI model is a

model introduced by Chaes Fornell at 1993, which consists of the reasons; customer

expectations, perceived quality and perceived value, customer satisfaction and the

results of it; customer loyalty and customer complaint (Deng, Yehb, & Sung, 2013;

Turkyilmaz et al., 2013). The model provides a direct and significant measure to

evaluate the consumers’ consumption, consequence behavior and economic

performance (Deng, Yehb, & Sung, 2013). Thus, ACSI models have been used by

7 main economic sectors, 35 businesses, and over 200 companies which their total

revenue takes 40% of United States GNP (Turkyilmaz et al., 2013). The critical

analysis of ACSI has been discussed in the section 2.4 Research Gap. The model of

ACSI is shown in Figure 2.3

Figure 2.3: American Customer Satisfaction Index Model

12
In this model, customer satisfaction represents the overall performance, the

fulfillment of expectation and expectation comparison (Chiu, Cheng, Yen, & Hu,

2011). Hence, customer expectation and service quality have a big influence on

customer satisfaction. Thus, customer expectation and service quality are taken

from this model.

2.3.3.1 Customer Expectation

Customer expectation is defined as what customer desires, wants and feels on what

a company should offer (Gures, Arslan, & Tun, 2014). Kim & Mattila (2013)

referred customer expectation as the standards which a customer will use to

compare the present experience with the past experience that will affect the

satisfaction conclusions. Customer expectation also plays an important factor in

deciding what product or service should the customers buy (Almsalam, 2014).

Furthermore, customer expectation evaluation is very important since the current

relationship of the company and its customer is depended on the expectation of

future quality which is crucial to general customer satisfaction; in which will reflect

on the customer purchase intention gradually (Turkyilmazet al., 2013). To

conclude, customer expectation could be defined as the standards of a product or

service that customer will use to determine whether the current experiences reach

their satisfaction level or not, which will later affect the relationship between the

business and its customers.

In the context of services, customer expectation has been used in some researches.

Chiu et al., (2011) used customer expectation along with image and perceived

quality to confirm its influences on perceived value, customer satisfaction and

loyalty in Taiwan’s automobile industry. In addition, Turkyilmaz et al., (2013)

13
researched on the relation of customer expectation, perceived quality, and image on

perceived value, customer satisfaction and loyalty in Turkish telecommunications

industry. Wong & Dioko (2013) also used customer expectation as a moderating

role in the relationship of perceived performance, perceived value, customer

satisfaction, loyalty intentions and complaint on Macau casinos’ customers.

Chiu et al. (2011) stated that customer expectation could be measured by customer

expectation on reliability quality factor, customization quality factor, functional

quality factor, technical quality factor and entire customer expectation factor.

Moreover, Turkyilmaz et al., (2013) measured customer expectation by using the

quality level of expectation on overall performance, customization, product, and

service. To conclude, this paper will measure customer expectation using the

expectation of quality’s level of reliability, customization, functional, technical and

overall expectation factor.

2.3.3.2 Service Quality

Based on ACSI model adaption, one of the determinants of purchase intention is

perceived quality. Since the purpose of the study is focused on the transportation

sector, perceived service quality or service quality will be used instead.

Parasuraman et al., (1988) defined service quality as a multi-dimensional model, in

which the general service quality’s perceptions are being described by each

dimension (Prentice, 2013). Service quality is a crucial role to attain customer

loyalty and sustained competitive advantage. Another opinion stated that service

quality is the perceived conclusions, based on the evaluation done on what

customers expect with what they received from a service when it is delivered

14
(Giovanis, Athanasopoulou, & Tsoukatos, 2015). It is found that service quality is

the important key that differentiates the service provider from its competitor.

Having a good service quality will result in new customers, customer loyalty, less

customer lost, safety from the price war and lessen the service error to avoid the

occurrence of service repetition (Butt, Shah, & Iqbal, 2016). In addition, excellent

high service quality will result in more customer willingness to recommend the

service, decrease customers’ complaints and increase in customer retention (Yap,

Ramayah, & Shahidan, 2012). Hence, service quality is a multi-dimension concept

that defines entire service quality, which is based on what customer wish to receive

with what they received from a service that will reflect on the customer satisfaction,

loyalty, customer’s intention to repurchase the service, and business’s competitive

advantage.

In the service industry, service quality is commonly used in the research. A research

focus on the impact of Asian casinos’ service quality along with customers

segments on customer loyalty is done by Pretince in 2013. Additionally, in Tseng

& Wu (2014) research, service quality act as the dependent variable which is

affected by customer knowledge, where customer relationship management is the

mediating role on the relationship done in Taiwan.

In measuring service quality, this research use SERVQUAL designed by

Parasuraman et al. in 1985, which is an approach to measure perceived service

quality, which represent the customer satisfaction, based on the difference of

customer expectation and their actual performance perception of a service

provider’s service quality (Choudhury, 2013; Malik, 2012).

15
The models consist 5 dimensions, which are Responsiveness, Assurance, Tangible,

Empathy and Reliability (Prentice, 2013). Responsiveness represents the

willingness of service providers’ employees in helping and giving a quick service

to the customers. Assurance is defined as the knowledge, competence, courtesy,

and ability of service providers’ employees to create customers’ trust and

confidence. Furthermore, tangible is referred as service providers’ physical

facilities, equipment and installations; and employees’ appearance. Empathy is the

ability of service providers in providing care, personal attention and customized

service to its customers. Additionally, reliability is the service provider’s ability in

delivering the promised service accurately, consistently and in a proper way (Tseng

& Wu, 2014; Prentice, 2013)

2.3.4 European Customer Satisfaction Index (ECSI)

The importance of image is demonstrated by European Customer Satisfaction Index

(ECSI), which is the extended model adapted from ACSI model (Askariazad &

Babakhani, 2015). It is a model based on well-established customers’ behavioral

theories and methods, which is applicable in various industries, for instance,

banking, retail, and so on. (Turkyilmaz et al., 2013; Askariazad & Babakhani,

2015). The model has some modifications from ACSI, which are; customer

complaints is excluded in ECSI model, but brand image is included (Turkyilmaz et

al., 2013). The model of ECSI is shown in Figure 2.4

Figure 2.4: European Customer Satisfaction Index Model

The contribution of ECSI is it explaining the role of brand reputation or brand image

as a moderator. Brand image is the perception of the present, previous and potential

16
customer on the brand, whereas the reputation is the entire public perception of the

brand (Bruno, 2015). It stated that brand reputation could damage a brand image,

even though it has a strong image. Moreover, brand image is difficult to be

measured since in the implication many customers don’t recognize what the image

of a certain company or brand is, while brand reputation is easier to be identified.

In addition, Waddington et al., (2014) stated brand image and brand identity are the

essential elements of brand reputation, which means brand reputation is the result

of brand image. Furthermore, brand reputation could increase brand identification

for the customers who seek social approval from people that recognize the brand

for its superior qualities (Han, Nguyen, & Simkin, 2016). Based on the analysis, the

research will use brand reputation as the moderating variable of this study. The

critical analysis of ECSI has been discussed in the section 2.4 Research Gap.

2.3.4.1 Brand Reputation

ECSI brought brand image, but the brand image is named as brand reputation in the

context of this study. According to Han et al., (2016), brand reputation is customers’

quality perception related to a brand name. The authors stated that having a good

brand reputation is important since it could reduce customers’ hesitation on the

brand identity and quality, which will increase the customers’ trust as well. Brand

reputation can be referred as customers’ opinion on other’s regarding the brands’

remarkable features by having the capability to offer a valued result to the customer

(Garg, Mukherjee, Biswas, & Kataria, 2015).

Brand reputation could affect the customers’ relationship’s strength on the brand

which could develop loyalty and a strong emotional relation between the customers

and the brand in a long-term period (Gul, 2014; Garg et al., 2015). Thus, brand

17
reputation is what customers view and know on a remarkable quality and offer

related to a certain brand name that will affect its integrity, reliability, and

trustworthiness, which later will affect customer relationship’s strength on the

company and loyalty in a long run.

Based on Han et al. (2016) study, brand reputation could be measured by the

trustworthiness, reliability, and image. In their research, brand reputation is used as

a variable, which affected by cultural value (collectivism/ individualism), that

influence the self-congruence, brand affect, brand identification and brand loyalty

on global chain restaurants’ customers. Brand reputation could be measured as well

by the trust which the closest people put in the brand and the willingness to purchase

the brand and its premium price due to its reputed price. Based on the previous

researches, the current study will measure brand reputation by its trustworthiness,

reliability, recognition and customers’ intention to use the service due to its

reputation and the willingness to pay a premium price for the brand.

2.4 Research Gap

Firstly, it was noticed that TRA and TPB theories have some limitation on its

practice. First, TRA/ TPB doesn’t cover other external variables which is very

important for measuring purchase intention, for example, product or service quality.

Moreover, it is found that it used to measure negative health behavior; such as

drinking and smoking, but not measuring and creating future intentions, such as

purchase intention (LaMorte, 2016; Moslehpour, Lin, & Nguyen, 2017).

Another limitation of TRA and TPB models are all the determinants of the models

can be summarized and represented by customer expectation. Customer

Expectation represents the Attitude towards the Behavior, Subjective Norms and

18
Perceived Behavioral Control because these variables describe the expectation and

feelings, individually and based on the closest peers, towards the act whether it

could have fulfilled their standard and whether they have the skills and abilities to

execute the behavior.

Having established that customer expectation is important, the ACSI and ECSI

became relevant in the context of this study. But in ACSI and ECSI models,

customer satisfaction and loyalty exist as the dependent variables. The ultimate

purpose of satisfaction or loyalty is to make the customers use or purchase the

product or service again, which is best depicted by intention. Hence, it can be

argued that intention to repurchase is the form of loyalty. Moreover, Reichheld

(1996) suggested that the customer satisfaction is a setup variable since its

relationship with the customer loyalty is not represents a concrete relationship of

positive correlation. He stated that customer loyalty reflects a repeating purchase

behavior, instead of a momentary emotional expression; like customer satisfaction

(Tsai, Tsai, & Chang, 2010). Thus, purchase intention is used as the ultimate factor

of the models.

One of the determinants of ACSI and ECSI models, which is perceived value is

represented by customer expectation and service quality. This is because perceived

value is the translation of service quality and customer expectation together.

Perceived value defined as customers’ evaluation of the product or service with

their expectation on the product or service (Ali, Gao, Rafiq, & Hassan, 2015).

Hence in measuring the purchase intention, the current research used service quality

and customer expectation as the independent variables and brand reputation as the

moderating variable.

19
2.5 Summary

To achieve the purpose of the research which is to identify the determinants of

customer purchase intention and how a reputation of a brand plays a role on the

purchase intention of a transportation service industry, the literature review

considered TRA/TPB, ACSI/ECSI theories and the conclusions was that customer

expectation and service quality are important as the determinants and brand

reputation as a moderator. The research framework will be based on the

conclusions. Hence, with variables taken from these 4 theories, a model of purchase

intention is developed which is discussed in Chapter 3.

20
 CHAPTER III

RESEARCH METHODS

3.1 Introduction

The theories and variables used in the current study have been described in the

previous chapter. To answer and prove the research questions and objectives,

having a research methodology is important. The current chapter will describe the

research design, research framework, hypotheses, operational definition of

variables, measurement scale and sampling method used in the study. Additionally,

the chapter explained the plan of data collection, PILOT test result, and the data

analysis plan.

3.2 Research Design

The present study is a quantitative research since a hypothesis testing was done in

the research. A hypothesis testing could only be done using a quantitative method.

A quantitative research is a well-structured, specific approach that its validity and

reliability have been checked. The approach’s result is easy to be defined and

recognized in which guarantee its measurement and classification accuracy

(Kumar, 2010). In measuring customer purchase intention on Uber and Blue Bird

based on the service quality and customer expectation with brand reputation effects

on customers’ decision making, it is important to collect customers’ opinion on it,

which could support the research accuracy since numbers are easy to be calculated

and an absolute value.

21
3.3 Research Framework

To fulfill the current research objectives, this study used service quality and

customer expectation as the determinants of purchase intention. In addition, this

study also used brand reputation as the moderator variables on purchase intention.

The research framework is shown in Figure 3.1

Figure 3.1: Research Framework

3.4 Hypothesis

In measuring the influences on service quality and customer expectation towards

customer purchase intention moderated by brand reputation, this study has proposed

the hypotheses as follows;

H1: There is no difference in purchase intention between Blue Bird and Uber

Customers

H2: Service Quality has a positive impact on Purchase Intention

H3: Customer Expectation has a positive impact on Purchase Intention

H4: Service Quality and Customer Expectation jointly have a positive impact

on Purchase Intention

H5: Brand Reputation has moderating influence on the impact of Service

Quality and Customer Expectation on Purchase Intention

3.5 Operational Definition of Variables

The operational definitions of variables used in the research are;

Service Quality; in this study, is what customers have evaluated on the quality of

Uber or Blue Bird service during the trip. It measured by five dimensions of

22
SERVQUAL; Responsiveness, Assurance, Tangible, Empathy and Reliability.

Scales and statements used are being discussed in the next section.

Customer Expectation; focuses on what Uber and Blue Bird’s customers expect

before they used the service. It measured by the expectation of the reliability of

Uber or Blue Bird drivers in terms of driving skill, providing a custom service, and

the overall service performance. Scales and statements used are being discussed in

the next section.

Brand Reputation; represents what customers have known regarding Uber or Blue

Bird based on their individual finding nor the closest peers; trust, reliable; and how

willing the customers to purchase the service to have experience with Uber or Blue

Bird. Scales and statements used are being discussed in the next section.

Purchase Intention; represents the exact measurement of the customer to do a re-

patronage action; purchase or hire Uber or Blue Bird services again. Scales and

statements used are being discussed in the next section.

3.6 Research Instruments

3.6.1 Questionnaire

The current study used constructs measurement from service quality, customer

expectation, brand reputation and purchase intention after being extracted and

selected from the literature review. Each variable is measured by a scale consisting

of 3-7 questions. The construct measurement is shown in Table 3.1

Table 3.1: Sources of Research Instrument

23
Service quality is measured by five dimensions from Parasuraman et al. (1988), in

which responsiveness is measured by five items; assurance is measured by four

items; tangible is measured by five items; empathy is measured by seven items, and

reliability is measured by five items; extracted from Tseng and Wu (2014), Pretince

(2013) and Munhurrun et al., (2010). To measured customer expectation, the

current study used six items generated from Chiu et al., (2011), Wong and Dioko

(2013) and Turkyilmaz et al., (2013). For brand reputation, the research used six

items, in which three items are extracted from Han et al., (2016) and Molinillo et

al., (2017), whereas the rest three items are constructed and developed by the author

to measured brand reputation in more detail and cover the factors where other items

are lack of. In measuring purchase intention, the study used four items generated

from Zhou et al., (2017), Kudeshia and Kumar (2017), and Jalilvand and Samiei

(2017). The statements were developed in English and later translated in Bahasa.

The Likert scale using 7 points was used in the questionnaire.

3.6.2 Reliability and Validity of the Research Instruments

The validity and reliability of the questionnaires have been checked through a

PILOT Test. Before the questionnaire is distributed, a PILOT test was conducted

on the questionnaire to avoid error in processing the data later. 30 valid respondents

were collected and further the PILOT test is done to confirm the validity and the

reliability of the respondents’ answers and constructs statements.

3.6.2.1 Reliability

Reliability is the relations of a variable’s instruments in having a similar meaning

(Kumar, 2010). To simplify, reliability is whenever the statement is used, the result

should be similar. A statement is reliable and acceptable when its Cronbach Alpha

24
surpasses 60% or 0.6 (Asyifa, 2016). The higher the result is, it increases the error-

free percentage, which means the reliability result of the PILOT test is likely to

equal to the final study result. The reliability test result is shown in Table 3.2

Table 3.2: PILOT Test – Reliability Test Result

To pass the Reliability test, the statements’ Cronbach’s Alpha should above 0.6

(Cronbach’s Alpha > 0.6) and the Cronbach's Alpha if Item Deleted of each item

should below the Cronbach's Alpha Based on Standardized Items (<Cronbach's

Alpha Based on Standardized Items). From the Reliability Test result, it is found

that three statements from service quality; which are “Uber/ Blue Bird cars have the

latest equipment; especially GPS” (Tangible), “Every time I hire Uber/ Blue Bird,

I received the same quality of service “and “Uber/ Blue Bird gives me an accurate

and timely information” (Reliability), are removed from the questionnaire since the

statements are not fulfilled the requirement (<Cronbach's Alpha Based on

Standardized Items). Moreover, two items from customer expectation; which are “I

expect that Uber/ Blue Bird drivers have a pleasant, neat and appropriate

appearance” and “I expect that Uber/ Blue Bird drivers will help me if I need

something” are removed as well because the statements are not fulfilled the

requirement (<Cronbach's Alpha Based on Standardized Items). The rest of items

are accepted since the entire requirements to pass the reliability test are fulfilled.

3.6.2.2 Validity

Validity is the ability of a statement in measuring its variable or construct (Kumar,

2010). There are 3 types of validity; content validity, predictive validity, and

construct validity. Content validity is the ability of an instrument in providing a

25
logical link with the research objective and in covering the variable measured. Next,

predictive validity is the ability of the statements in predicting a result. Last,

construct validity is the instruments’ level on how well it measures the variable

studied (Asyifa, 2016). The current research has tested the content validity and the

construct validity. The content validity is done since the statements used in the

questionnaire is taken from several existing theories, whereas the construct validity

is done to ensure all statements are heading to one direction, which is customer

intention to purchase between 2 brands. The predictive validity is not relevant since

the research is an exploratory model not to predict.

In measuring construct validity, a factor analysis was used. Factor analysis referred

to the number of instruments measured in a certain construct. In addition, a principle

component measured is done to show the number of components, in which a

construct is acceptable when only one component is shown (Asyifa, 2016). The

validity test result is shown in Table 3.3

Table 3.3: PILOT Test – Principle Component Method Result (Validity Test)

Each dimension and variables are analyzed separately. Based on the result, two

items of service quality, “Uber/ Blue Bird drivers shows interest in solving my

problem” and “Uber/ Blue Bird drivers are always willing to help me” (Empathy)

are removed since the items makes the Empathy dimensions is extracted by two

components and its component 1 and component 2 values have a little different

compared to other statements. In addition, three items from Brand Reputation which

are “Uber/ Blue Bird Brand is reputable”, “I hire Uber/ Blue Bird service because

its reputed service” and “I can always recognize Uber/ Blue Bird Brand” are

26
removed as well because the items makes the variable is extracted by two

components and its component 1 and component 2 value have a little different

compared to other statements. The rest of the items are accepted since the entire

requirements to pass the validity test are fulfilled.

3.7 Sampling Method

The sampling method used in the current research is convenience sampling which

could be known as non-probability sampling. The method is chosen since everyone

has an opportunity becoming the sample of this research due to the general need for

transportation (Glen, 2015). The current research used the convenience sampling,

where the questionnaire is purposed for the customers who have purchase Uber or

Blue Bird brand as the current research object. Thus, a question on the brand

preference is being asked at the beginning of the questionnaire. There is no

influence or bias in customer responses. Moreover, the link of the questionnaire is

distributed and shared to respondents and their peers online, to ensure the

inexistence of bias.

The sample size is determined based on the minimum margin of error, which is 5%.

Based on Sekaran et al., (2001), with the population of transportation users exceed

than 1,000,000 users and using a 5% margin of error, the study should collect 384

responses.

The questionnaire is made using Google Form and distributed digitally to online

booking and conventional transportations; in this case Uber and Blue Bird’s,

customers in Jakarta, Bogor, Depok, Tangerang and Bekasi (JABODETABEK)

areas, in which the customers more than 50,000 people. The questionnaire’s link

27
was distributed using social media messenger and social media platforms, for

instance, LINE, WhatsApp, and Instagram. As the result, 384 valid respondents are

collected.

3.8 Data Analysis Plan

The collected data were identified by four analyses, which are Descriptive Analysis,

T-Test, Inferential Analysis and Moderating Analysis. The Descriptive Analysis is

done to describe the respondents’ profile. Since the current research used two

transportation service brands as the object, an Independent Sample T-Test is done

to identify whether there is a significant difference between Uber and Blue Bird’s

customer responses. To test the hypotheses and relationships of the variables, the

inferential analysis is used since the nature of the approach is to measure the

relations between variables using a sample size. In the inferential analysis, there are

3 approaches being considered, which are Correlation Analysis, Regression

Analysis and Structural Equation Model/ SEM (Crossman, 2017). Correlation

analysis is the analysis that measures the strength of the relationship between

variables (Crossman, 2017). Next, regression analysis referred to the analysis that

measures the relationship between an independent variable and its dependent

variable. When a model consists of one independent variable and one dependent

variable it is called linear regression whereas, if the model has more than one

independent variable, it is called as multiple regressions (Crossman, 2017). Last,

SEM is an approach that assesses a complex study that consists of more than one

independent variable and dependent variable in it (Crossman, 2017). With more

than one independent variables and a dependent variable existed, this study used

Regression Analysis, where SEM is not considered since the model is simple.

28
Correlation analysis is not considered, since in case of simple regression,

correlation analysis is equal to simple regression, hence there is no need to do the

analysis. The moderating effect was analyzed by Moderating Analysis introduced

by Hayes which is called as HAYES Method (Preacher & Hayes, 2004).

3.9 Summary

The current research is a quantitative study that examines the effect of service

quality and customer expectation towards customers’ purchase intention which

moderated by the brand reputation of Uber and Blue Bird. A research framework

and hypotheses are developed to answers the research questions and objectives of

the study. The questionnaire is developed using the statements combined by several

authors. 30 respondents are collected to do PILOT Test in which nine statements

are removed due to unable to fulfill the requirements. The rest of questionnaire’s

statements are accepted and distributed to Uber and Blue Bird customers in

JABODETABEK areas using Google Form. Since the target respondents are Uber

and Blue Bird customers, a convenience sampling method is used. The

questionnaire is distributed digitally via social media messenger and platform, such

as LINE, WhatsApp, and Instagram. A sample size is determined based on the

population of Uber and Blue Bird customers, which is more than 1,000,000 users,

and the margin of error used, 5%. Based on Sekaran et al. (2001), 384 responses

should be collected, in which, 384 valid responses are collected. The collected data

was analyzed by Descriptive Analysis, T-Test, Regression Analysis, and

Moderating Analysis are done.

29
 CHAPTER IV
DATA ANALYSIS

4.1 Introduction

In the previous section, the research design, framework, sampling method, data

analysis plan, the validity and reliability test result has been discussed. To test the

hypotheses, in the current section, the data analysis result is discussed, which

divided into 4 tests. First, this chapter was discussed the test result of descriptive

analysis of the total samples, the T-Test analysis, the Regression Analysis and the

Moderating Analysis or PROCESS Test under Hayes Method.

4.2 Descriptive Analysis – Total Samples

From valid respondents, around 14% of its use Blue Bird service the most, whereas

the rest 86% use Uber service. Moreover, there were roughly 60% are female

respondents and 40% are male respondents. From the total valid respondents,

around 38% are teens or below 20 years old, 62% are adults and hardly are elders.

Furthermore, most of the responses are answered by students around 85%, 10% are

answered by working people and 5% are answered by entrepreneurs and

unemployed people. The descriptive analysis is shown in Table 4.1

Table 4.1: Descriptive Analysis Result

Based on the respondents’ latest education level, roughly 65% are scholars while

35% are colleges. Additionally, from the respondents’ income level, around 76%

are low-income people, 20% are middle-income people and 4% are high-income

people.

30
4.3 Independent Sample T-Test

Since the current study examines the service quality and customer expectation from

two brands of transportation service, T-Test is done to determine whether there is a

significant difference between these two brands’ customer responses. The T-Test

result is represented by Table 4.2

Table 4.2: Independent Sample Test of Mean

Based on the result, in the Group Statistics table, Blue Bird’s Mean (4.9) and

Standard Deviation (1.18) are almost equal with Uber’s Mean (4.8) and Standard

Deviation (1.21) Value. In addition, in the Independent Sample Test table, on the

Levene's Test for Equality of Variances result, it indicates that there is no statistical

difference between Uber and Blue Bird’s customer responses since the p-value

(0.466) is bigger than 0.05. Moreover, the 2-tailed p-value (0.757) is higher than p

<0.05 as well.

Based on the test result, H1 which covers “There is no difference in purchase

intention between Blue Bird and Uber customers”, is supported. Hence there is no

statistical and significant difference on Uber and Blue Bird customer responses on

their purchase intention.

4.4 Inferential Analysis

As what the previous chapter has mentioned, the current research used Multiple

Regression Analysis considering the model of the research in which Purchase

Intention is influenced by two independents variables; Service Quality and

Customer Expectation.

31
4.4.1 Service Quality towards Purchase Intention

To test the H2, which is to evaluate the relationship of service quality towards

customer purchase intention, a simple linear regression is conducted. The result of

the linear regression of service quality on purchase intention is shown in Table 4.3

Table 4.3: Service Quality on Purchase Intention Regression Test Result

Based on the result, ANOVA table shows that the F-Value; 356.052, is very high

with p-value is 0.000. Thus, the numbers represent that there is a strong linear

relationship between service quality and its customer purchase intention. In

addition, based on the Model Fit Summary, the Adjusted R Square is 0.481, which

means 48.1% of purchase intention variation is explained by the service quality. On

the Coefficient table, the t-value is 18.9 which significant with 0.000 p-value. The

table also indicates the model has a positive coefficient value with 0.922.

Therefore, the H2 is supported and shows that service quality affects the customer

purchase intention.

4.4.2 Customer Expectation towards Purchase Intention

To test the H3, which is to evaluate the relationship of customer expectation towards

customer purchase intention, a simple linear regression is conducted. The result of

the linear regression of customer expectation on purchase intention is shown in

Table 4.4

Table 4.4: Customer Expectation on Purchase Intention Regression Test Result

Based on the result, ANOVA table shows that the F-Value; 67.131, is very low;

compared with its service quality, with p-value is 0.000. Thus, the numbers

32
represent that there is a weak linear relationship between customer expectation and

its customer purchase intention. In addition, based on the Model Fit Summary, the

Adjusted R Square is 0.147, which means 14.7% of purchase intention variation is

explained by the customer expectation. On the Coefficient table, the t-value is 8.193

which significant with 0.000 p-value. The table also indicates the model has a

positive coefficient value with 0.427, which means service quality has more impact

on customer purchase intention rather than its customer expectation.

Therefore, H3 is supported and shows that customer expectation affects the

customer purchase intention.

4.4.3 Joint Impact of Service Quality and Customer Expectation towards

Purchase Intention

To test the H4, which is to evaluate the joint effect of service quality and customer

expectation towards customer purchase intention, a multiple regression is

conducted. The result of the multiple regression of service quality and customer

expectation on purchase intention is shown in Table 4.5

Table 4.5: Service Quality and Customer Expectation on Purchase Intention

Regression Test Result

On the Model Fit Summary, it shows that the Adjusted R Square value is 0.487,

which means that service quality and customer expectation have 48.7%; which is

quite higher than the individual impacts’, on customer purchase intention. The

model fit is quite good since the regression result could explain the purchase

intention variance, efficiently.

33
Based on the result, ANOVA table shows that the F-Value; 182.645, which is high,

with p-value is 0.000. Thus, the numbers represent that there is a strong joint effect

of service quality and customer expectation on its customer purchase intention.

Therefore, the hypothesis H4 is supported and the joint effects of service quality

and customer expectation are significant on the customer purchase intention.

However, it is noticeable that, on the Coefficient table, the t-value of service quality

is 15.929 which significant with 0.000 p-value. The t-value of customer expectation

is 2.294 which significant with 0.022 p-value. These numbers show that service

quality is more prominent determinants of purchase intention compared to customer

expectation.

4.5 Analysis of Moderating Influence

With the existence of brand reputation as the moderating variable of service quality

and customer expectation on customer purchase intention, the current research used

PROCESS test, which designed by Hayes, to analyze the moderating effect of brand

reputation. To check the moderation impact, first brand reputation is introduced as

an additional determinant.

4.5.1 Brand Reputation towards Purchase Intention

A simple regression is conducted, to check whether the influence of brand

reputation as a determinant of purchase intention is valid. The result of the linear

regression of brand reputation on purchase intention is shown in Table 4.6

Table 4.6: Brand Reputation on Purchase Intention Regression Test Result

34
Based on the result, ANOVA table shows that the F-Value; 340.666, is high with

p-value is 0.000. Thus, the numbers represent that there is a strong linear

relationship between brand reputation and its customer purchase intention. In

addition, based on the Model Fit Summary, the Adjusted R Square is 0.470, which

means 47% of purchase intention variation is explained by the brand reputation. On

the Coefficient table, the t-value is 18.457 which significant with 0.000 p-value.

The table also indicates the model has a positive coefficient value with 0.713.

Therefore, brand reputation significantly affects the customer purchase intention as

a determinant.

4.5.2 Moderating Influence of Brand Reputation on Overall Impact of

Determinants

To test the H5, which is to evaluate the moderating effect of brand reputation on

the relationship between service quality and customer expectation towards

customer purchase intention, a multiple regression is conducted first. This multiple

regression analysis is conducted to check whether brand reputation is valid as the

moderator and give its impact on the relationship. The result of the multiple

regression of service quality, customer expectation and brand reputation on

purchase intention is shown in Table 4.7

Table 4.7: Multiple Regression Including Moderating Variable

On the Model Fit Summary, it shows that the Adjusted R Square value is 0.540,

which means that service quality, customer expectation, and brand reputation have

explained 54%; which is quite higher than the individual impacts’, of customer

35
purchase intention. The model fit is quite good since the regression result could

explain the purchase intention variance, efficiently.

Based on the result, ANOVA table shows that the F-Value; 151.060 which is high,

with p-value is 0.000. Thus, the numbers represent that there is a strong joint effect

of service quality, customer expectation and brand reputation on the customer

purchase intention.

However, it is noticeable that, on the Coefficient table, the t-value of service quality

is 7.140 which significant with 0.000 p-value. The t-value of brand reputation is

6.735 which significant with 0.000 p-value. Lastly, the t-value of customer

expectation is 1.461 which insignificant with 0.145 p-value. These numbers show

that service quality and brand reputation give contributions to purchase intention

when customer expectation is not.

Comparing this result with the joint impact of service quality and customer

expectation towards purchase intention, it indicates there is an increase on the

Adjusted R Square before (0.487) and after (0.540) the existence of brand

reputation as the determinants. It also shows that, when brand reputation existed,

customer expectation became insignificant variable in determining the purchase

intention. This is due because of moderating influence of brand reputation. Since

the result is changed in terms of this results’ Adjusted R Square and the contribution

of customer expectation on purchase intention, it could be concluded that there is a

moderating influence given by the brand reputation on the relationship of service

quality and customer expectation on purchase intention. Thus, H5 which covers

Brand Reputation has a moderating influence on the joint effect of Service Quality

and Customer Expectation on Purchase Intention is a supported hypothesis using

36
regression method. To validate this result, another test of hypothesis H5 was

performed.

4.5.3 Moderating Influence by Hayes Method

To test the moderating effect of brand reputation on the relationship of service

quality and customer expectation towards purchase intention, a PROCESS test is

conducted using Hayes’s Method Model 4.

The result of the moderating effect of brand reputation on service quality and

customer expectation towards purchase intention is shown in Table 4.8

Table 4.8: Service Quality and Customer Expectation towards Purchase Intention
Moderated by Brand Reputation Hayes Method Result

Based on the Model Summary, it is proven that the model is significant (p-value

0.000) with F-value equal to 151.0597. It is also shown that the value of R Square

is equal to 0.5439, which mean that 54.39% of purchase intention is explained by

the model.

From the result, it shows that service quality has a significant (p-value 0.000) effect

on customer purchase intention through brand reputation with 0. 5193 as the

coefficient value. It is also shown that customer expectation has insignificant (p-

value 0. 1449) effect on customer purchase intention through brand reputation with

0.0632 as the coefficient value. Thus, when there is an existence of brand

reputation, every-changes in service quality, it will increase customer purchase

intention, while every-changes on customer expectation, it won’t change the

purchase intention.

37
On the Indirect Effect of X on Y from Total, Direct and Indirect Effects Result, it

is shows that brand reputation is a significant moderator (BootLLCI = 0.2043;

BootULCI = 0.5029; in which there is no zero value between them) of the

relationship of service quality towards its customer purchase intention, with

coefficient value equal to 0.3463 (Hayes, PROCESS: A versatile computational

tool for observed variable mediation, moderation, and conditional process

modeling, 2012).

Considering these results, it shows a significant result equals to moderating analysis

using Regression Method. The results indicate that when brand reputation exists,

service quality is valid as a determinant variable of purchase intention, whereas

customer expectation is proven to not. This meant that what have customers

expected is reflected on the brand reputation. Therefore, it could be concluded that

brand reputation gives moderating impact on the other relationships of purchase

intention.

Thus, H5, which cover “Brand Reputation has a moderating influence on the joint

effect of Service Quality and Customer Expectation on Purchase Intention”, is

proven supported using Hayes Method.

4.6 Summary

Various analyses have been done to confirm the relationship of service quality and

customer expectation towards customer purchase intention moderated by brand

reputation. The analyses done are Descriptive Analysis, T-Test, Regression

Analysis, and Moderating Analysis. Based on the data analyses result, all five

hypotheses are supported and shown in the Table 4.10

38
Table 4.10: Hypotheses Conclusion

Using T-Test, it is proven that there is no difference between brands (H1). Based

on the regression analyses, it is proven that service quality and customer expectation

give a significant impact; individually and jointly, on purchase intention (H2, H3,

H4). Lastly, from Regression Analysis and Moderating Analysis results, it is found

that brand reputation is the moderating variable of purchase intention (H5).

39
 CHAPTER V
CONCLUSION

5.1 Introduction

In the previous section, the data analyses and the test result has been discussed. In

the current section, a conclusion is written. First, this chapter discussed the

conclusion and the limitation of the current research. Moreover, it described the

recommendation given for Uber and Blue Bird to face the problem discussed.

Lastly, the current research is discussed the future path where future researches

could discuss.

5.2 Conclusion

The current research discussed a problem that could arise when the government

implemented the regulation on the tariff and number of taxis services; online

booking and conventional. With the possibility of equal tariff and a limited number

of operated cars for both kind of taxi services, securing its customer purchase

intention; first-time nor repeated; is very important. Hence, a research problem is

identified which is to confirm whether customer expectation and service quality

have a determining influence and brand reputation has a moderating influence on

purchase intention. Moreover, it is important to confirm whether brands influence

the intention differently for both Uber and Blue Bird.

Based on the research problem identified, five research questions and objectives are

identified. The first objective is to confirm whether there is no difference on Uber

and Blue Bird customer purchase intention, in which it is found that there is no

40
significant difference between them. Hence, this research could be applied to

general taxi or transportation services.

The second question is whether service quality impacts purchase intention on the

transportation service, which is found that service quality gives a positive impact

on customer purchase intention. This conclusion is supported by Chimedtseren &

Safari (2016) and Hassan, Hashmi, & Sarwar (2014) studies.

Thirdly, is to confirm whether customer expectation is the determinant of purchase

intention. The result found that customer expectation has a positive impact on

customer purchase intention, which is supported by the study done by Nam, Dong,

& Lee, (2017).

The fourth question is whether service quality and customer expectation give a joint

impact on purchase intention of the transportation service. It is proven that service

quality and customer expectation have a joint impact on its customer purchase

intention, and it is matched with Chiu, Liu, & Tu (2016) study. Based on the result,

it is found that service quality is the is the most important variable of purchase

intention.

The last objective is to confirm whether brand reputation is the moderator of service

quality and customer expectation towards purchase intention on the transportation

service. It is found that brand reputation is proven to give a moderating impact on

the impact of service quality and customer expectation towards customer purchase

intention, and it is supported by a research done by Bang, Odio, & Reio (2014). In

conclusion, all 5 objectives and questions are answered.

41
 5.3 Implications for Transport Industry

The research has many industries and managerial implications. The first implication

is there is no difference in the brand. The second implication is that service quality

is the most important factor. Third, brand reputation gives a moderating impact on

purchase intention only based on service quality. Hence, both Blue Bird and Uber

or any transportation service should focus on establishing and maintaining an

excellent service quality delivered during the trip. It could be done by conducting a

frequent training, after and during the drivers join the company. In addition, the

service providers should focus on improving their brand reputation as well; since it

gives moderating impact on the customer purchase intention. This could be done

by responding customer feedback or complaint promptly and providing an excellent

customer experience. By focusing on and having an excellent service quality and

brand reputation, customer expectation will gradually be fulfilled by the service

providers, in which will increase the purchase intention, especially on the repeated

purchase intention.

5.4 Limitations of this Study

The study is conducted on the focus of transportation service only; specifically taxi

service. In addition, this research is conducted on Indonesia, precisely on Jakarta,

Bogor, Depok, Tangerang and Bekasi areas or known as JABODETABEK. The

study also doesn’t focus on the implementation of the used variables on the non-

service industry, such as manufacturing industry.

42
 5.5 Future Path

For future researches, it should consider evaluating the relationship of the

determinants and moderated variable on customer purchase intention on other

service business, such as hospitality, education, and so on. The future researches

could also include customer complaint/ customer review as a part of the model since

the said variable is another part of customer loyalty besides purchase intention and

including e-service quality/ ease of e-booking as the determinant of purchase

intention since taxi services have included application-based booking. Since the

current study focus on JABODETABEK areas, the future research could consider

evaluating the operation of transportation or taxi services in other areas. Lastly, this

study has used multiple regression analysis due to the simple model adapted, where

future research could use SEM analysis instead.

43
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 APPENDICES

APPENDIX 1 – QUESTIONNAIRE

Dear respected respondent,

I, Felecia, am a Business Administration students concentrated in Retail Business from
President University. I am currently working on my research to complete one of the
requirement to achieve my Bachelor degree. In addition, the survey is made in order to
how service quality and customer expectation of a taxi service; online booking &
conventional, could affect the customer's purchase intention, which moderated by
brand reputation. If you would like to spare your time to fill out this survey intended
for Uber and Blue Bird in JABODETABEK area, I would be very grateful. This
questionnaire should only take 3-5 minutes of your time. Please be assured that all
answers you provide will be kept in the strictest confidentially and will be used for the
study purpose only. I would like to thank you for taking the time to complete the survey.

Which service do you use the

1. most? Uber
Blue Bird

I.Questions

Note: Please circle the number with the brand you have chosen
before

SECTION A: SERVICE QUALITY

Strongly Disagree - Strongly Agree
No. Statement Item
1 2 3 4 5 6 7
RESPONSIVENESS

1 Uber/ Blue Bird drivers give me prompt service 1 2 3 4 5 6 7

Uber/ Blue Bird drivers are always welcome my

2 1 2 3 4 5 6 7
questions and comments

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 Uber/ Blue Bird drivers can immedietly respond
3 1 2 3 4 5 6 7
my demands

4 Uber/ Blue Bird drivers are polite and friendly 1 2 3 4 5 6 7

Uber/ Blue Bird drivers can effectively

5 1 2 3 4 5 6 7
communicate with me

ASSURANCE

Uber/ Blue Bird drivers can precisely tell me my

1 1 2 3 4 5 6 7
waiting time

Uber/ Blue Bird drivers are equipped with the

2 professional and good driving ability to provide 1 2 3 4 5 6 7
service

Uber/ Blue Bird drivers have the knowledge to

3 answer my questions regarding the trip; example 1 2 3 4 5 6 7
route

I feel safe in using the service from Uber/ Blue

4 1 2 3 4 5 6 7
Bird

TANGIBLE

Uber/ Blue Bird cars have the latest equipment;

1 1 2 3 4 5 6 7
especially GPS

2 Uber/ Blue Bird cars' exterior is modern looking 1 2 3 4 5 6 7

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 Uber/ Blue Bird cars have attractive and neat
3 1 2 3 4 5 6 7
interior

Uber/ Blue Bird car's facilities are appealing and

4 1 2 3 4 5 6 7
appropiate

Uber/ Blue Bird cars and drivers' appearance are

5 1 2 3 4 5 6 7
appropiate and neat

EMPATHY

Uber/ Blue Bird drivers understand my specific

1 1 2 3 4 5 6 7
needs; for example temperature, hurriness,etc.

2 Uber/ Blue Bird has my best interests at heart 1 2 3 4 5 6 7

Uber/ Blue Bird drivers give me personal

3 1 2 3 4 5 6 7
attention; for example, check, talk, etc.

Uber/ Blue Bird drivers can help providing my

4 1 2 3 4 5 6 7
specific needs; for example, baggage, water, etc.

Uber/ Blue Bird drivers shows interest in solving

5 1 2 3 4 5 6 7
my problem

Uber/ Blue Bird drivers are always willing to help

6 1 2 3 4 5 6 7
me

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 Uber/ Blue Bird drivers can make me feel
7 1 2 3 4 5 6 7
respected

RELIABILITY

Every time I hire Uber/ Blue Bird, I received the

1 1 2 3 4 5 6 7
same quality of service

Uber/ Blue Bird provides their services at the time

2 1 2 3 4 5 6 7
they promise to do so

Uber/ Blue Bird drivers allow me to know what

3 1 2 3 4 5 6 7
happened during the service

4 Uber/ Blue Bird drivers are reliable 1 2 3 4 5 6 7

Uber/ Blue Bird gives me an accurate and timely

5 1 2 3 4 5 6 7
information

SECTION B: BRAND REPUTATION

Strongly Disagree - Strongly Agree
No. Statement Item
1 2 3 4 5 6 7
BRAND REPUTATION

1 Uber/ Blue Bird brand is trustworthy 1 2 3 4 5 6 7

2 Uber/ Blue Bird brand is reputable 1 2 3 4 5 6 7

3 People I know trust Uber/ Blue Bird brand 1 2 3 4 5 6 7

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 I am willing to pay a premium for Uber/ Blue Bird
4 1 2 3 4 5 6 7
brand
I hire Uber/ Blue Bird service because its
5 1 2 3 4 5 6 7
reputated service

6 I can always recognize Uber/ Blue Bird Brand 1 2 3 4 5 6 7

SECTION C: CUSTOMER EXPECTATION

Strongly Disagree - Strongly Agree
No. Statement Item
1 2 3 4 5 6 7
CUSTOMER EXPECTATION

I expect that Uber/ Blue Bird drivers have a

1 1 2 3 4 5 6 7
pleasant, neat and appropriate appearance

I expect that Uber/ Blue Bird drivers have a

2 1 2 3 4 5 6 7
positive attitude

I expect that Uber/ Blue Bird drivers are

3 1 2 3 4 5 6 7
professional and have good driving skills

4 I expect that Uber/ Blue Bird services are reliable 1 2 3 4 5 6 7

I expect that Uber/ Blue Bird services could bring

5 1 2 3 4 5 6 7
me to my destination on time

I expect that Uber/ Blue Bird drivers will help me 1 2 3 4 5 6 7

6
if I need something

SECTION D: PURCHASE INTENTION

Strongly Disagree - Strongly Agree
No. Statement Item
1 2 3 4 5 6 7
PURCHASE INTENTION

1 I would purchase Uber/ Blue Bird service 1 2 3 4 5 6 7

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 I intend to purchase Uber/ Blue Bird service in the
2 1 2 3 4 5 6 7
future

I would purchase Uber/ Blue Bird service rather

3 1 2 3 4 5 6 7
than any other brands' available

I would consider Uber/ Blue Bird the next time I

4 1 2 3 4 5 6 7
need to use the service

II. RESPONDENT PROFILE

NOTE: Check the square

1 Gender Male Female

2 Age < 20 Years Old

20-30 Years Old
31-40 Years Old
> 40 Years Old

3 Current occupation Student

Working
Not Working
Entrepreneur

4 Education Senior High School

Graduate (S1-S2)
Higher Education (S3)

5 Monthly income < Rp. 3.000.000

Rp 3.000.000 – Rp 10.000.000
> Rp 10.000.000

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APPENDIX 2 – QUESTIONNAIRE RESULT

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 TABLES
Table 3.1: Sources of Research Instrument
CONSTRUCT & CONSTRUCT MEASUREMENT
Variable Source Source's Statement Justified Statements

Munhurrun, et.al, 2010,

International Journal of The school always welcomes educators’ Uber/ Blue Bird drivers are always welcome my
Quality and Service questions and comments questions and comments
Sciences

Our company’s service staff can Uber/ Blue Bird drivers can immediately respond
immediately respond to customer demands my demands

Service Quality Tseng & Wu, 2014,

(Responsiveness) International Journal of Our company’s service staff is polite and
Uber/ Blue Bird drivers are polite and friendly
Quality and Service friendly
Sciences
Our company’s service staff can effectively Uber/ Blue Bird drivers can effectively
communicate with our customers communicate with me

Prentice, Catherine,
2013, International Employees of the casino give you prompt
Uber/ Blue Bird drivers give me prompt service
Journal of service
Contemporary

85
 Hospitality
Management

Our company’s service staff can precisely Uber/ Blue Bird drivers can precisely tell me my
Tseng & Wu, 2014, tell our customers their waiting time waiting time
International Journal of
Quality and Service
Sciences Our company’s service staff is equipped Uber/ Blue Bird drivers are equipped with the
with the professional ability to provide professional and good driving ability to provide
service service
Service Quality
(Assurance) Uber/ Blue Bird drivers have the knowledge to
Prentice, Catherine, Employees of the casino have the
answer my questions regarding the trip; example
2013, International knowledge to answer your questions
route
Journal of
Contemporary
Hospitality You feel safe in your transactions with the I feel safe in using the service from Uber/ Blue
Management casino Bird

86
 Uber/ Blue Bird cars have the latest equipment;
especially GPS
Munhurrun, et.al, 2010,
International Journal of
The school has modern looking equipment
Quality and Service
Sciences
Uber/ Blue Bird cars' exterior is modern looking

Service Quality Our company’s service equipment is Uber/ Blue Bird cars have attractive and neat
(Tangible) Tseng & Wu, 2014, attractive interior
International Journal of
Quality and Service
Sciences Our company’s service facilities are Uber/ Blue Bird car's facilities are appealing and
appealing and appropriate appropriate

Prentice, Catherine,
2013, International
Journal of The casino’s employees are neat- Uber/ Blue Bird cars and drivers' appearance are
Contemporary appearance appropriate and neat
Hospitality
Management

87
 Munhurrun, et.al, 2010,
International Journal of The school shows interest in solving Uber/ Blue Bird drivers shows interest in solving
Quality and Service educators’ problem my problem
Sciences

Our company’s service staff can provide

Uber/ Blue Bird drivers can help providing my
customized service based on customer
Tseng & Wu, 2014, specific needs; for example, baggage, water, etc.
demands
International Journal of
Quality and Service
Sciences Our company’s service staff can make our Uber/ Blue Bird drivers can make me feel
customers feel respected respected
Service Quality
(Empathy)
Employees of the casino understand your Uber/ Blue Bird drivers understand my specific
specific needs needs; for example temperature, hurricanes, etc.
Prentice, Catherine,
2013, International
Journal of
The casino has your best interests at heart Uber/ Blue Bird has my best interests at heart
Contemporary
Hospitality
Management
The casino has employees who give you Uber/ Blue Bird drivers give me personal
personal attention attention; for example, check, talk, etc.

88
 Employees of the casino are always willing Uber/ Blue Bird drivers are always willing to help
to help you me

Munhurrun, et.al, 2010,

International Journal of The school gives accurate and timely Uber/ Blue Bird gives me an accurate and timely
Quality and Service information to the educators information
Sciences

Our company’s service staff is reliable Uber/ Blue Bird drivers are reliable
Tseng & Wu, 2014,
International Journal of
Quality and Service
Service Quality Sciences Our company’s service staff can accomplish Uber/ Blue Bird drivers allow me to know what
(Reliability) tasks on time happened during the service

The casino provides its services at the time Uber/ Blue Bird provides their services at the
Prentice, Catherine,
it promises to do so time they promise to do so
2013, International
Journal of
Contemporary
Hospitality
The casino performs the service right the Every time I hire Uber/ Blue Bird, I received the
Management
first time same quality of service

89
 This brand is trustworthy Uber/ Blue Bird brand is trustworthy
Han, et al., 2016,
European Journal of
Marketing
This brand is reputable Uber/ Blue Bird brand is reputable

People I know trust this brand People I know trust Uber/ Blue Bird brand

Brand I am willing to pay a premium for a reputed I am willing to pay a premium for Uber/ Blue
Reputation brand Bird brand

I buy reputed brand because I am sure of its I hire Uber/ Blue Bird service because its
good quality reputated service

Molinillo,et.al., 2017,
I can quickly recall the symbol or logo of
Marketing Intelligence I can always recognize Uber/ Blue Bird Brand
this brand
& Planning

90
 I expect that Uber/ Blue Bird drivers have a
pleasant, neat and appropriate appearance
Expectation towards the attitude and
appearance of employee
I expect that Uber/ Blue Bird drivers have a
Chiu, et al., 2011, positive attitude
Expert System with
Application Expectation towards the employee's ability, I expect that Uber/ Blue Bird drivers are
knowledge, and service professional and have good driving skills

Expectation towards the reliability of the

I expect that Uber/ Blue Bird services are reliable
car
Customer
Expectation
Before my experience with the casino, I
Wong & Dioko, 2013, expected that its ability to perform the I expect that Uber/ Blue Bird services could bring
Tourism Management promised service reliably and accurately me to my destination on time
would be

Turkyilmaz, et al.,
2013, Industrial I expect that Uber/ Blue Bird drivers will help me
expectations for fulfillment of personal need
Management & Data if I need something
Systems

91
 Zhou et al., 2017, I would consider this online retailer the I would consider Uber/ Blue Bird the next time I
Internet Research next time I need to do online shopping need to use the service

I would buy this product I would purchase Uber/ Blue Bird service
Kudeshia & Kumar,
Purchase 2017, Management
Intention Research Review I intend to purchase this product in the I intend to purchase Uber/ Blue Bird service in
future also the future

Jalilvand & Samiei,

I would buy this product/brand rather than I would purchase Uber/ Blue Bird service rather
2012,Marketing
any other brands available than any other brands' available
Intelligence & Planning

92
 Table 3.2: PILOT Test – Reliability Test Result

Reliability Statistic Item-Total Statistic

Cronbach's
Alpha Based Cronbach's
Cronbach's
Variable on Item Alpha if Item
Alpha
Standardized Deleted
Items
REP1 0.826
REP2 0.829
(SQ) Responsiveness 0.844 0.842 REP3 0.754
REP4 0.826
REP5 0.817
ASS1 0.766
ASS2 0.690
(SQ) Assurance 0.766 0.779
ASS3 0.724
ASS4 0.661
TAN2 0.824
TAN3 0.826
(SQ) Tangible 0.863 0.866
TAN4 0.811
TAN5 0.842
EMP1 0.825
EMP2 0.830
(SQ) Empathy 0.873 0.875 EMP3 0.838
EMP4 0.870
EMP7 0.863
REL2 0.839
(SQ) Reliability 0.887 0.89 REL3 0.815
REL4 0.860
CEX2 0.847
Customer CEX3 0.881
0.899 0.905
Expectation CEX4 0.852
CEX5 0.898
BRE1 0.752
Brand Reputation 0.843 0.862 BRE3 0.684
BRE4 0.925
PIN1 0.894
PIN2 0.856
Purchase Intention 0.896 0.901
PIN3 0.859
PIN4 0.851

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Table 3.3: PILOT Test – Principle Component Method Result (Validity Test)

Number of
% of Variance
Variable Component
Explained
Extracted
Responsiveness (SQ) 1 61.748
Assurance (SQ) 1 60.377
Tangible (SQ) 1 71.43
Empathy (SQ) 1 66.97
Reliability (SQ) 1 71.777
Customer
1 77.891
Expectation
Brand Reputation 1 78.697
Purchase Intention 1 77.246

Table 4.1: Descriptive Analysis Result

Cumulative
Measure Item Frequency Percentage
Percentage
Preferred Blue Bird 329 14.3 14.3
Brand Uber 55 85.7 100
Female 226 58.9 58.9
Gender
Male 158 41.1 100
< 20 Years Old 146 38 38
21 - 30 Years Old 235 61.2 99.2
Age
31 - 40 Years Old 2 0.5 99.7
> 40 Years Old 1 0.3 100
Student 327 85.2 85.2
Current Working 39 10.2 95.4
Occupation Entrepreneur 13 3.4 98.8
Not Working 5 1.3 100
Senior High School 248 64.6 64.6
Latest
Graduate 134 34.9 99.5
Education
Higher Education 2 0.5 100
< Rp. 3,000,000 292 76 76
Monthly Rp. 3,000,000 - Rp.
76 19.8 95.8
Income 10,000,000
> Rp 10,000,000 16 4.2 100

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 Table 4.2: Independent Sample Test of Mean

Group Statistics
Preferred Std. Std. Error
Brand N Mean Deviation Mean
Purchase Blue Bird 55 4.8909 1.17828 .15888
Intention Uber 329 4.8366 1.20802 .06660

Levene's Test for Independent Samples Test

Equality of Variances t-test for Equality of Means 95% Confidence
Sig. (2- Mean Std. Error Interval of the
F Sig. t df tailed) Difference Difference Lower Upper
Purchase Equal 0.533 0.466 0.310 382 0.757 0.05428 0.17537 -0.29053 0.39910
Intention variances
assumed
Equal 0.315 74.268 0.754 0.05428 0.17227 -0.28896 0.39753
variances
not
assumed

Table 4.3: Service Quality on Purchase Intention Regression Test Result

Model Summary & ANOVA

Adjusted R
F Sig.
Model R R Square Square
1 .695a .482 .481 356.052 .000b

Coefficientsa
Unstandardized Standardized
Coefficients Coefficients Collinearity Statistics
Model B Beta t Sig. Tolerance VIF
1 (Constant) 0.360 1.489 0.137
Service 0.922 0.695 18.869 0.000 1.000 1.000
Quality
a. Dependent Variable: Purchase Intention

Table 4.4: Customer Expectation on Purchase Intention Regression Test

Result

Model Summary & ANOVA

Adjusted R F Sig.
Model R R Square Square
1 .387a .149 .147 67.131 .000b

95
 Coefficientsa
Unstandardized Standardized
Coefficients Coefficients Collinearity Statistics
Model B Beta t Sig. Tolerance VIF
1 (Constant) 2.372 7.727 0.000
Customer 0.427 0.387 8.193 0.000 1.000 1.000
Expectation

a. Dependent Variable: Purchase Intention

Table 4.5: Service Quality and Customer Expectation on Purchase Intention

Regression Test Result

Model Summary & ANOVA

Adjusted R
F Sig.
Model R R Square Square
1 .700a .489 .487 182.645 .000b

a
Coefficients
Unstandardize Standardized
d Coefficients Coefficients Collinearity Statistics
Model B Beta t Sig. Tolerance VIF
1 (Constant) 0.031 0.111 0.911
Service 0.866 0.652 15.929 0.000 0.799 1.252
Quality
Customer 0.104 0.094 2.294 0.022 0.799 1.252
Expectation
a. Dependent Variable: Purchase Intention

Table 4.6: Brand Reputation on Purchase Intention Regression Test Result

Model Summary & ANOVA

Adjusted R
F Sig.
Model R R Square Square
1 .687a .471 .470 340.666 .000b

a
Coefficients
Unstandardized Standardized
Coefficients Coefficients Collinearity Statistics
Model B Beta t Sig. Tolerance VIF
1 (Constant) 1.342 6.885 0.000
Brand 0.713 0.687 18.457 0.000 1.000 1.000
Reputation
a. Dependent Variable: Purchase Intention

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 Table 4.7: Multiple Regression Including Moderating Variable

Model Summary & ANOVA

Adjusted R
F Sig.
Model R R Square Square
1 .738a .544 .540 151.060 .000b

a
Coefficients
Unstandardized Standardized
Coefficients Coefficients Collinearity Statistics
Model B Beta t Sig. Tolerance VIF
1 (Constant) 0.095 0.357 0.721
Service Quality 0.519 0.391 7.140 0.000 0.399 2.503

Customer 0.063 0.057 1.461 0.145 0.783 1.277

Expectation
Brand 0.378 0.364 6.735 0.000 0.411 2.435
Reputation
a. Dependent Variable: Purchase Intention

Table 4.8: Service Quality and Customer Expectation towards Purchase

Intention Moderated by Brand Reputation Hayes Method Result

Model Summary

F Sig.
Model R R Square
1 0.7375 .5439 151.0597 .0000

Model
coeff se t p LLCI ULCI
constant 0.0947 0.2650 0.3572 0.7212 -0.4264 0.6158
BRE 0.3779 0.0561 6.7349 0.0000 0.2676 0.4882
SQ 0.5193 0.0727 7.1403 0.0000 0.3763 0.6623
CEX 0.0632 0.0433 1.4608 0.1449 -0.0219 0.1482

Indirect effect of X on Y
Boot Boot
Effect Boot SE LLCI ULCI
BRE 0.3463 0.0764 0.2043 0.5029

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 Table 4.10: Hypotheses Conclusions

Hypothesis Result
H1: There is no difference in purchase intention between Blue Bird
Supported
and Uber Customers
H2: Service Quality has a positive impact on Purchase Intention Supported
H3: Customer Expectation has a positive impact on Purchase
Supported
Intention
H4: Service Quality and Customer Expectation jointly have a positive
Supported
impact on Purchase Intention
H5: Brand Reputation has moderating influence on the joint effect Supported
of Service Quality and Customer Expectation on Purchase Intention

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 FIGURES

Figure 2.1 Theory of Reasoned Action Model

Source: Adapted from Hackman & Knowlden (2014)

Figure 2.2 Theory of Planned Behavior Model

Source: Addapted from Kim & James (2016)

99
 Figure 2.3 American Customer Satisfaction Index Model

Source: Ryding, et al., (2016)

Figure 2.4 European Customer Satisfaction Index Model

Source: Turkyilmaz, et al., (2013)

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Figure 3.1 Research Framework

101