Journal of Business, Social and Technology (Bustechno) http://bustechno.ridwaninstitute.co.id/index.php/jbt/issue/current

 

THE EFFECT OF CUSTOMER SATISFACTION ON LOYALTY �OF THE LEMBANG FLOATING MARKET TOURISM AREA

 

Maris Agung Triandewo, Klemens Wedanaji Prasastyo, Alfira Azzahra

Trisakti School of Management, Jakarta, Indonesia

Email: [email protected], [email protected], [email protected]

 

 

Abstract

 

Article Information:

Received:

22-12-2022

Revised:

05-01-2023

Accepted:

19-01-2023

 

 

Keywords:

Entertainment Experience; Esthetic Experience; Escapism Experience; Customer Satisfaction; Customer Loyalty.

The main purpose of this study is to find out the influence of Customer Experiences on Customer Loyalty through Customer Satisfaction in visitors to the Floating Market Lembang tourist area, Bandung, West Java,� assisted by the use of Experience Economy. Experience Economy has four variables, that is, Entertainment, Education, Aesthetic, and Escapist all of which are important to map customers� tendency to prefer. Research utilizes a type of quantitative research that is descriptive.� The data was supported through distribution of questionnaires to respondents with a total of 201.� This study utilized statistical methods via SmartPLS 3.0. The results of this study show that except for Education, other variables have positive and significant effect on Customer Satisfaction, that is, Entertainment, Aesthetic, and Escapist. Education does not have impact on Customer Satisfaction because it is likely that customers come to Floating Market Lembang to enjoy and relax, not learn, Thus, they do not need much education aspect of this tourism area. Ultimately, Customer Satisfaction gives impact on Customer Loyalty.

 

Introduction

The tourism recreation sector, in recent decades, is seen as one of the largest contributors to the country's income. According to data on the World Travel and Tourism Council website, this sector has contributed about 10.4 percent throughout 2019 to GDP (Gross Domestic Product) globally and is a larger number than the utility sector (related to spending on electricity, water and fuel) and the agricultural sector. In Indonesia, the tourism sector contributes around 200 trillion rupiah to GDP and represents an increase of 15.4 percent from the previous year (Indonesia, 2020). (White, 2007), Indonesia's tourism sector only contributed about 4.671 billion US dollars (approximately 67 trillion rupiah), and this figure is also a decrease from 2019, which was 9.170 billion US dollars (131 trillion rupiah). Most of this decline is the impact of the Covid-19 virus pandemic.

Indonesia is ranked 40th globally in the Travel and Tourism Competitiveness Index (TTCI) issued by the World Economic Forum (WEF) in 2019. This is a new achievement, where previously Indonesia was ranked 42nd in 2017. While in the ASEAN region, Indonesia is ranked fourth under Singapore (ranked 17th), Malaysia (ranked 29th), and Thailand (ranked 31st) (Rosenberg & Czepiel, 1984).

Table 1
Comparison of TTCI among Selected ASEAN from 2017 to 2019

No. 

Country 

Rank 

2017 (out of 136) 

2019 (out of 140)

1 

Singapura 

13  

17

2 

Malaysia 

26 

29 

3 

Thailand 

34 

31 

4 

Indonesia 

42 

40 

5 

Vietnam 

67 

63 

Source: LAKIP Ministry of Tourism and Economy

 

Recreational tourism does have its own charm, whether for those who really like entertainment, or just taking a break from daily activities and routines. Each country has its own uniqueness and characteristics related to recreational tourism or attraction. This is influenced by many factors, ranging from culture to regulations and the political environment of the country. Some attractions are also equipped with facilities, layout, and decorations that support an artificial atmosphere so that it is expected to create a sensation for visitors who come. In Indonesia, the level of tourist visits in general increases from year to year. This shows that Indonesia has sufficient tourism potential to be utilized and developed.

There is one city in Indonesia that also has the potential for creative and attractive tourism, namely Bandung. Located in the province of West Java, Bandung is one of the largest metropolitan cities with a humid and cool climate, so it is not surprising that it is a favorite place for local residents to travel. A big city with natural conditions that give the impression of calm, crowds with friendliness, and other similar expressions have long described Bandung. Based on data obtained from the West Java Open Data regarding the number of tourist visits in West Java Province, there has been a significant increase, both foreign and local, visiting Bandung. The highest overall number was achieved by West Bandung Regency, followed by Bandung Regency, and then Bandung City. Figures from the graph show that West Bandung Regency has an opportunity for their place or tourist attraction which can be maximized by holding memorable events or celebrations in iconic places, where one of the most popular is the Lembang Floating Market tourist area. Several articles reported that there was an increase in the number of visitors to the Lembang Floating Market tourist area by up to 50 percent in each high season or peak season.

However, the recorded increase and decrease in the number of tourists in West Bandung Regency looks too sharp, so this may cause problems due to its instability. Moreover, the decline experienced by West Bandung Regency from 15 million tourists in 2019 to 5 million tourists in 2020.

One of the areas claimed to be the largest contributor to tourists in the West Bandung Regency area as stated in the Jabar Express (2022) is Lembang. In the first quarter of 2020, Lembang contributed around 1.1 million tourists, both domestic and foreign. Although this number has decreased by around 50 percent from the previous year, also due to capacity restrictions related to the COVID-19 pandemic, Lembang seems to remain a popular tourist destination in Bandung.

One of the most popular among all destinations is the Lembang Floating Market or the Lembang Floating Market Tourism Area which has been open to the public since 2012. The Floating Market is a tourist area that initially highlighted the shopping experience in floating markets such as in Thailand or the Barito River, South Kalimantan. Now the Lembang Floating Market Tourism Area has at least seven rides/attraction in it that present different concepts and nuances in each place, such as: European-style Mini Town, Japanese Village, Rainbow Garden, Water Games and Swimming Pool, Rabbit Park, Miniature Train, and Outbound rides.

However, during the COVID-19 pandemic, followed by all restrictions and the implementation of health protocols, the average number of visitors to the Lembang Floating Market Tourism Area is considered very volatile. In 2020, they can only fulfill an average of 15 percent of the total capacity. Then in 2021, the average number of visitors only met 10 percent of the maximum capacity recommended by the government. Finally, in the first quarter of 2022, an average of 20 percent of the maximum capacity has been fulfilled. However, this figure is still far from their target of meeting 50 percent of the total capacity that can be accommodated by the Lembang Floating Market Tourism Area.

 

Method

According to (Sugiyono & Kuantitatif, 2009), the variables that influence or are the cause of the change or the emergence of the dependent variable (bound) are the independent variables. The dependent variable is the variable that is influenced or that becomes the result, because of the independent variable.

The objects of this research are Floating Market tourist area which is located in the Lembang area, West Bandung Regency, West Java Province and has been opened since 2012. The Floating Market tourist area in Lembang was chosen because the tourist spot has four elements from the Experience Economy dimension. The selection of tourist attractions with these criteria is needed to measure the influence between variables more precisely.

Data was collected by distributing questionnaires to respondents to meet the total number of samples in the form of 201 people with the criteria set by the researcher through a questionnaire in the form of Google Form as primary data collection for research purposes.

The research hypothesis was tested using a Structural Equation Model (SEM) approach based on Partial Least Square (PLS). PLS is a component or variance based structural equation model. SEM is one of the fields of statistical study that can test a series of relationships that are relatively difficult to measure simultaneously.

 

Results and Discussion

Table 2 
Responden�s Age

Age 

Frequency 

Percent 

Valid Percent 

Cumulative Percent 

17 � 20

21 � 25

26 � 30

31 � 35

36 � 40

>40

Total 

18 

61 

48 

30 

26 

18 

201 

9.0 

30.3 

23.9 

14.9 

12.9 

9.0 

100.0 

9.0 

30.3 

23.9 

14.9 

12.9 

9.0 

100.0 

9.0 

39.3 

63.2 

78.1 

91.0 

100.0 

Source: Data processing IBM SPSS 25

 

In Table 2 it can be seen that the total number of respondents collected were 201 people and grouped by age, the researchers divided them into 6 parts, namely 17-20 years old, 21-25 years old, 26-30 years old, 31-35 years old, 36-40 years old. years, and >40 years. The largest number were respondents aged 21-25 years with a total of 61 people or 30.3 percent, followed by respondents aged 26-30 years with a total of 48 people or 23.9 percent. The rest are respondents aged 31-35 years with a total of 30 people or 14.9 percent, respondents aged 36-40 years with a total of 26 people or 12.9 percent, and the rest are respondents aged 17-20 years and over 40 years with the same total, namely 18 people, or 9 percent. The overall score for a total of 201 respondents was 100 percent.

Table 3���
Responden�s Domicile

Domicile

Frequency 

Percent 

Valid Percent 

Cumulative Percent 

Jabodetabek 

Bandung 

Luar Jabodetabek dan Bandung 

Total 

141 

17 

43 

201 

70.1 

8.5 

21.4 

100.0 

70.1 

8.5 

21.4 

100.0 

70.1 

78.6 

100.0 

 

In Table 3 it can be seen that the total number of respondents collected was 201 people and grouped based on their domicile which is divided into 3 parts, namely Jabodetabek, Bandung, and outside Jabodetabek and Bandung. The largest number are respondents who live in Greater Jakarta with a total of 141 people or 70.1 percent, followed by respondents who live outside Greater Jakarta and Bandung with a total of 43 people or 21.4 percent. The rest are respondents who live in Bandung with a total of 17 people or 8.5 percent. The overall score for a total of 201 respondents was 100 percent.

Table 4
Responden�s Last Visit

Year 

Frequency 

Percent 

Valid Percent 

Cumulative Percent 

This Year (2022) 

1 Year Ago (2021) 

2 Years Ago (2020) 

Total 

80 

81 

40 

201 

39.8 

40.3 

19.9 

100.0 

39.8 

40.3 

19.9 

100.0 

39.8 

80.1 

100.0 

 

In Table 4 it can be seen that the total number of respondents collected was 201 people and grouped based on their visit time (year) which is divided into 3 parts, namely this year (2022), 1 year ago (2021), and 2 years ago (2020). The highest number was the last visit 1 year ago (2021) with a total of 81 people or 40.3 percent, then followed by the last visit this year (2022) with a total of 80 people or 39.8 percent. The rest was the last visit 2 years ago (2020) with a total of 40 people or 19.9 percent. The overall score for a total of 201 respondents was 100 percent.

 

A.       Outer Model Evaluation

Validity Test Table 5

�Average Variant Extracted (AVE)

Variable

AVE 

Critical Value

Note 

Entertainment Experience (X1) 

0.745 

0.50 

Valid 

Esthetic Experience (X2) 

0.796 

0.50 

Valid 

Education Experience (X3) 

0.833 

0.50 

Valid 

Escapism Experience (X4) 

0.854 

0.50 

Valid 

Customer Satisfaction (I) 

0.873 

0.50 

Valid 

Customer Loyalty (Y) 

0.858 

0.50 

Valid 

 Source: Data Processing of Smart PLS 3

 

Based on the results of the AVE data test presented in Table 5 above, it can be seen that the AVE value of each variable has a value > 0.50. Thus it can be stated that each research variable has met the requirements of good convergent validity according to its AVE value.

Table 6
Cross Loading Score

 

Entertainment Experience 

Esthetic Experience 

Education Experience 

Escapism Experience 

Customer Satisfaction 

Customer Loyalty 

ENT1 

0.899 

0.71 

0.591 

0.54 

0.745 

0.647 

ENT2 

0.857 

0.749 

0.638 

0.594 

0.751 

0.726 

ENT3 

0.858 

0.721 

0.606 

0.578 

0.762 

0.748 

ENT4 

0.837 

0.646 

0.58 

0.489 

0.661 

0.6 

EST1 

0.706 

0.897 

0.626 

0.649 

0.73 

0.701 

EST2 

0.701 

0.927 

0.613 

0.6 

0.718 

0.704 

EST3 

0.757 

0.857 

0.563 

0.548 

0.738 

0.662 

EST4 

0.76 

0.885 

0.683 

0.674 

0.736 

0.701 

EDU1 

0.655 

0.673 

0.947 

0.704 

0.706 

0.683 

EDU2 

0.654 

0.65 

0.94 

0.647 

0.688 

0.657 

EDU3 

0.615 

0.648 

0.906 

0.723 

0.682 

0.703 

EDU4 

0.629 

0.571 

0.856 

0.594 

0.677 

0.627 

ESC1 

0.632 

0.689 

0.656 

0.92 

0.753 

0.7 

ESC2 

0.542 

0.574 

0.689 

0.927 

0.659 

0.693 

ESC3 

0.592 

0.65 

0.685 

0.925 

0.729 

0.732 

SAT1 

0.8 

0.761 

0.705 

0.71 

0.944 

0.768 

SAT2 

0.831 

0.782 

0.67 

0.689 

0.941 

0.764 

SAT3 

0.744 

0.754 

0.74 

0.772 

0.918 

0.805 

LOY1 

0.738 

0.704 

0.64 

0.634 

0.735 

0.92 

LOY2 

0.701 

0.728 

0.736 

0.782 

0.783 

0.911 

LOY3 

0.757 

0.724 

0.654 

0.711 

0.795 

0.947 

Source: Data Processing of Smart PLS 3

 

Based on the data presented in Table 6 above, it can be seen that each research variable indicator has a cross loading value greater than the cross loading value on other variable indicators. Based on the results obtained, it can be stated that the variable indicators used in this study have good discriminant validity values, so it can be stated that the data has met the discriminant validity requirements.

Reliability Test Table 7
Composite Reliability Coefficient

Variable

Composite Reliability Coefficient 

Cronbach�s Alpha Coefficient 

Critical Value

Note 

Entertainment Experience (X1) 

0.921 

0.886  

0.70 

Reliable

Esthetic Experience (X2) 

0.940 

0.914 

0.70 

Reliable

Education Experience (X3) 

0.952 

0.933 

0.70 

Reliable

Escapism Experience (X4) 

0.946 

0.915 

0.70 

Reliable

Customer Satisfaction (I) 

0.954 

0.927 

0.70 

Reliable

Customer Loyalty (Y) 

0.948 

0.917 

0.70 

Reliable

Source: Data Processing of Smart PLS 3 

 

Based on the results of the Composite Reliability test shown in Table 7 above, which is the part used to assess the reliability value of a data, it can be seen that both Composite Reliability and Cronbach�s Alpha values of all research variables are > 0.70. These results indicate that each variable has met the requirements of the Composite Reliability critical value so that it can be concluded that all variables have a good level of reliability and reliability.

 

B.            Inner Model Evaluation

 

Source: Data Processing of Smart PLS 1

Figure 1
Inner Model Scheme

 

The result of the R-Square value for Customer Loyalty is 0.669 and the Adjusted R-Square value is 0.693, which means that 69.3 percent of the dependent variable Customer Loyalty (Y) has effectiveness which is influenced by the intervening variable, namely Customer Satisfaction (I). Meanwhile, the remaining 30.7 percent are influenced by other factors that are outside the research framework.

Then, the result of the R-Square value for Customer Satisfaction is 0.826 and the Adjusted R-Square value is 0.823, which means that 82.6 percent of the Intervening Customer Satisfaction (I) variable has effectiveness which is influenced by the independent variable, namely Entertainment Experience (X1), Esthetic Experience (X2), Education Experience (X3), and Escapism Experience (X4). Meanwhile, the remaining 17.4 percent are influenced by other factors that are outside the research framework. From the explanation of the results of the data above, it can be concluded that the research model has good feasibility.

Apart from the R-Square value, the assessment is also known from the Q-Square value. The Q-Square value has the same meaning as the coefficient determination (R-Square) in regression analysis, when the higher the Q-Square, the model can be said to be better or more fit with the data. The results of the calculation of the Q-Square value generated from the SmartPLS 3 calculation are 0.591 for the Customer Loyalty variable, and 0.712 for the Customer Satisfaction variable.

Table 8
Hypothesis Test

Hypothesis

Relationship 

Original Sample (O) 

T-Statistic 

P-values 

Note 

H1 

Entertainment Experience -> Customer Satisfaction 

0.428 

6.640 

0 

Supported 

H2 

Esthetic Experience -> Customer Satisfaction 

0.193 

3.096 

0.002 

Supported

H3 

Education Experience -> Customer Satisfaction 

0.112 

1.742 

0.082 

Not Supported 

H4 

Escapism Experience -> Customer Satisfaction 

0.286 

4.644 

0 

Supported

H5 

Customer Satisfaction -> Customer Loyalty 

0.834 

35.606 

0 

Supported

 Source: Data Processing of Smart PLS 3

 

Referring to Table 8, it can be inferred that except for H3, all other hypotheses are supported meaning that there is significant relationship between two variables where P-values are less than 0.05 and T-statistics are greater than 1.96.

For H1, based on table 8 above, it can be seen that the P-value is 0 and the T-statistics result is 6.640 > 1.960 so that there is a significant influence between Entertainment Experience on Customer Satisfaction on visitors to the Lembang Floating Market Tourism Area. While the Path Coefficient of Entertainment Experience value on Customer Satisfaction on visitors to the Lembang Floating Market Tourism Area shows an Original Sample (O) value of 0.428, which means that the Entertainment Experience on Customer Satisfaction on visitors to the Lembang Floating Market Tourism Area has a positive relationship between those variables.

Customers who visit that area enjoy facilities provided. The Floating Market Lembang tourist area does offer several activities that can be categorized as an Entertainment Experience because of their nature that requires passive participation and high absorption, such as the Rabbit Park and Miniature Train.

This is in line with the research results of (Molina-G�mez, Mercad�-Mel�, Almeida-Garc�a, & Ruiz-Berr�n, 2021), (Qu, 2017), and (Huang & Yang, 2018) which show a significant influence between the Entertainment Experience variable on Customer Satisfaction.

For H2, based on Table 8� above, it can be seen that the P-value is 0.002 and the T-statistics result is 3.096 > 1.960 so that there is a significant effect between the Esthetic Experience on Customer Satisfaction on visitors to the Lembang Floating Market Tourism Area. While the Path Coefficient of the value of Esthetic Experience on Customer Satisfaction on visitors to the Lembang Floating Market Tourism Area shows an Original Sample (O) value of 0.193, which means that the Esthetic Experience of Customer Satisfaction on visitors to the Lembang Floating Market Tourism Area has a positive relationship between those variables.

The Floating Market Lembang tourist area offers rides that are classified as Esthetic Experience, such as Rainbow Garden, Mini City, and Kyoto Park. Those rides offer unique layout that supports esthetics that is harmony in nuance. It makes people enjoy the view of those rides or gardens making them feel like in real situation of those rides. This experience makes customers satisfied.

This is in line with the research results of �(Molina-G�mez et al., 2021), (Qu, 2017), (Mahdzar et al., 2017) and (Ali, Hussain, & Ragavan, 2014), which shows a significant influence between the Esthetic Experience variables on Customer Satisfaction.

For H4, based on Table 9, it can be seen that the P-value is 0 and the T-statistics is 4.644 > 1.960 so that there is a significant effect between Escapism Experience on Customer Satisfaction on visitors to the Lembang Floating Market Tourism Area. While the Path Coefficient of Escapism Experience value on Customer Satisfaction on visitors to the Lembang Floating Market Tourism Area shows an Original Sample (O) value of 0.286, which means that Escapism Experience on Customer Satisfaction on visitors to the Lembang Floating Market Tourism Area has a positive relationship between those variables.

The tourist area of ​​​​Floating Market Lembang is located in a highland area that is identified with beautiful and calm natural scenery. One of the global trip recommendation articles even mentions that Lembang is The Tranquil Place or a quiet place. This beautiful and quiet area is very common as a tourist destination, especially for people who live in densely populated urban areas with high mobility. This situation makes it a right place to escape from customers� regular activity.

This is in line with the research results of (Molina-G�mez et al., 2021), (Zhang, Song, & Park, 2016), and (Coetzee, 2015) which show a significant influence between Escapism Experience variables on Customer Satisfaction.

For H5, based on table 8, it can be seen that the P-value is 0 and the T-statistics result is 35,606 > 1,960 so that H0 is rejected and Ha is accepted. Thus, there is a significant effect between Customer Satisfaction on Customer Loyalty on visitors to the Lembang Floating Market Tourism Area. While the Path Coefficient of Customer Satisfaction value to Customer Loyalty for visitors to the Lembang Floating Market Tourism Area shows an Original Sample (O) value of 0.834, which means that Customer Satisfaction towards Customer Loyalty for visitors to the Lembang Floating Market Tourism Area has a positive relationship between those variables.

This is in line with the research results of (Molina-G�mez et al., 2021), (El-Adly, 2019), (Gul, 2014), (Zhang et al., 2016), and (Tonapa & Kurniawati, 2022) which show a significant influence between the Customer Satisfaction variables. towards Customer Loyalty.

For H3, based on Table 8, it can be seen that the P-value is 0.082 and the T-statistics result is 1.742 < 1.960 so that H0 is accepted and Ha is rejected. Thus, there is no significant effect between Education Experience on Customer Satisfaction on visitors to the Lembang Floating Market Tourism Area. While the Path Coefficient of Education Experience value on Customer Satisfaction on visitors to the Lembang Floating Market Tourism Area shows an Original Sample (O) value of 0.112, which means that Education Experience on Customer Satisfaction on visitors to the Lembang Floating Market Tourism Area has a positive relationship between those variables.

The results of this study did not show the same results as the study by (Molina-G�mez et al., 2021), which shows that there is a significant influence between the Education Experience variable on Customer Satisfaction even though the influence value is the smallest among the other four variables. However, research (Yogi, 2018) show the same results as the research results, that Education Experience does not have a significant effect on Customer Satisfaction� (Tonapa & Kurniawati, 2022).

Theoretically the possibility of this result occurs because the Lembang Floating Market Tourism Area is described as a tourist destination for entertainment, where the role of education displayed in several rides is not the main focus of visitors who come.

Element of Education Experience in the Lembang Floating Market Tourism Area can be seen from the rides in the Mini City, such as Professional Games.

 

Conclusion

Based on the result of this study, the authority or manager of Floating Market Lembang tourism can improve some part of the site. Among four variables of Experience Economy, other than Education Experience variable have positive and significant impact on Customer Satisfaction. Customers prefer enjoying situation and facilities to learning things in that tourism area. Therefore, strategy and improvement should be directed more on those areas rather than education aspect. They come to Floating Market Lembang to have entertainment and escape from their routine daily activity. The manager should be more creative to set the aesthetic of each ride, make them more similar to the original shape. For example, European and Japanese style of houses and garden, by increasing the aesthetic aspect will make nuance of Europe and Japan like the real Europe and Japan that in turn will make customers feel as if they are in real Europe and Japan. They will feel escaping from their daily activity, they will immerse into worth situation.

Another example of implementation that can be taken by manager regarding finding of this study is, by improving entertainment aspect, since Entertainment Experience variable has also positive and significant impact on Customer Satisfaction. Manager should think creatively to add more rides related to entertainment and fun, so that tourists can have more choices to play covering children, teenager even adult. The rides and playing ground should be created with criteria as match as possible with the needs of respective age group.

 

 

 

 

 

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Copyright holder :

Maris Agung Triandewo, Klemens Wedanaji Prasastyo, Alfira Azzahra (2023)

 

First publication right :

Journal of Business, Social and Technology (Bustechno)

 

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