JRSSEM 2022, Vol. 01, No. 11, 1934 – 1951
DOI : 10.36418/jrssem.v1i11.208 https://jrssem.publikasiindonesia.id/index.php/jrssem/index
E-ISSN: 2807 - 6311, P-ISSN: 2807 - 6494
EFFECT OF BRAND IMAGE, PROMOTION AND PHYSICAL
DISTRIBUTION ON BRAND LOYALTY WITH CUSTOMER
SATISFACTION AS THE INTERVENING VARIABLE
Muhamad Apep Mustofa
1
*
Nandan Limakrisna
2
Hari Muharam
3
1,2,3
Universitas Pakuan Bogor, Indonesia
e-mail: apepmustofa89@gmail.com, correspondent.author@gmail.com,
hari.muharam@unpak.ac.id
*Correspondence: correspondent.author@gmail.com
Submitted: 28 May 2022, Revised: 06 June 2022, Accepted: 15 June 2022
Abstract. This research is motivated by changes in the cement market in Indonesia along with
the addition of several new cement brands that are competitors for the incumbent cement brands
that have existed for a long time. Per capita cement consumption in Indonesia is still low
compared to three ASEAN countries such as Malaysia, Vietnam and Thailand. Besides, there is a
decrease in Top Brand Image between 2018-2019 for the Semen Tiga Roda brand. In the arena of
increasingly fierce competition between brands, it is necessary to increase brand loyalty, where
brand loyalty is influenced by the level of customer satisfaction. This customer satisfaction is an
intervening variable to further increase brand loyalty. When customers are satisfied, they will be
more loyal to the brand so that customers do not easily move to other brands. Many factors affect
the increase in brand loyalty, including promotion, brand image and physical distribution. So the
purpose of this study was to determine the effect of brand image, promotion and physical
distribution on brand loyalty with satisfaction as an intervening variable. The location of the study
was carried out in Greater Jakarta with the unit of analysis was members of the Greater Jakarta
REI as many as 250 respondents. This research uses path analysis method with structural equation
modeling (SEM) technique. These results find empirical facts that brand image, promotion and
physical distribution together have a significant effect on customer satisfaction, and customer
satisfaction has a significant effect on brand loyalty. Thus, the higher the customer satisfaction,
the higher the brand loyalty will be.
Keywords: brand image; promotion; physical distribution; satisfaction; brand loyalty; rei members.
Muhamad Apep Mustofa
| 1935
DOI : 10.36418/jrssem.v1i11.208 https://jrssem.publikasiindonesia.id/index.php/jrssem/index
INTRODUCTION
The cement industry is one of the most
strategic and vital industries because it is
needed to support development, especially
now that the government is boosting
infrastructure development where the need
is increasing from time to time. Cement as
one of the main raw materials for the
construction of housing, buildings, roads,
dams and other infrastructure is an
important factor to support national
economic growth (Jin & Cho, 2015); (Li et
al., 2019). Guaranteed supply from
producers to the market is absolutely
necessary for the continuity of national
development to run smoothly.
The cement market in Indonesia has
undergone significant changes, after a long
oligopoly market, along with the arrival of
foreign investors and local investors who
were given permission to establish new
factories in Indonesia, so the market shifted
to monopsony (Wilson et al., 2020);
(Sokolova & Sorensen, 2021). The presence
of these new competitors spurred the
incumbent brand to further increase
customer satisfaction so as to increase
brand loyalty.
Figure 1. Map of Cement Factory Locations in Indonesia
Source: https://asi.or.id/#
It can be seen in Figure 1 that until 2018
the distribution of the cement industry in
Indonesia which was recorded as a member
of ASI (Indonesian Cement Association) as
a senior and incumbent member are Semen
Tiga Roda, Semen Indonesia Group (Semen
Gresik, Semen Padang, Semen Batu Raja),
Semen Kupang, Semen Bosowa, Semen
Tonasa and Holcim (after being acquired by
Semen Indonesia Holcim changed its brand
to Dynamix). Meanwhile, the newcomers
are Semen Bima, Semen Garuda, Semen
Conch, Semen Merah Putih, Semen Jawa
(Siam Cement Group) and Semen Jakarta.
Table 1. Installed Capacity VS
Domestic Cement
Year
Installed
Capacity
Domestic
Demand
2015
88,200,000
61,995,000
Customer Satisfaction as the Intervening Variable
Year
Installed
Capacity
Domestic
Demand
2016
89,700,000
61,639,000
2017
107,400,000
66,350,000
Source at: www.cbnindonesia.com
Table 1. shows that the installed
capacity is still higher than domestic
cement demand. Currently, the cement
market in Indonesia is still experiencing
growth, where the national sales trend is
increasing from year to year.
Table 2. Distribution of Domestic Cement Consumption
In The Regions
2017
2018
Increase
Percentage
National Percentage
Java
26,960,000
27,970,000
1,010,000
3.75%
56.23%
Sumatra
9,990,000
10,730,000
740,000
7.41%
21.57%
Sulawesi
3,840,000
4,030,000
190,000
4.95%
8.10%
Kalimantan
3,160,000
2,900,000
260,000
8.97
%
2.780,000
90000000
2.780,000
3.35%
5.59%
Eastern
Indonesia
20,000
1,050,000
1,070,000
1.90
%
2.15%
Total
47,432,017
49,742,018
2,310,000
4.87%
100.00%
Sourced from: www.cbnindonesia.com
Table 2. above is data on domestic
cement sales, both in bulk and in packaged
form 40 kg and 50 kg per bag, the
absorption of packaged cement includes
the property sector, small-scale
development projects and end users,
namely people who need cement to
renovate or build private houses, while bulk
cement is mostly used by large-scale
development projects such as toll road
projects, airports, dams, and ready mix
concrete industry (Hammad et al., 2021); .
According to the chairman of the
Indonesian Cement Association, Widodo,
the biggest demand for cement is for
housing, reaching 70 percent and the rest
for projects and infrastructure. This can be
seen from the demand for bag cement
which is much higher than bulk, in the form
of 73% cement bag and 27% bulk cement.
However, when compared to other ASEAN
countries, the consumption of cement per
capita in Indonesia is very low, in
comparison with several countries such as
Malaysia, Vietnam and Thailand, it turns out
that Indonesia is in the lowest position of
per capita consumption as shown in the
graph below.
Muhamad Apep Mustofa
| 1937
Figure 2. Consumption of Cement Kilograms per capita
Source: Berita Satu, Friday 8 February 2019
suspected that it will increase cement
Malaysia is in first place with 751 kg per
capita, then Vietnam 661 kg, followed by
Thailand 443 kg, while Indonesia only 243
kg. Taking into account the low level of
cement consumption in Indonesia, this is an
opportunity for cement producers to
market their products more aggressively
(Camoiras-Rodríguez & Varela-Neira,
2020); (Zadeh et al., 2019). Besides that, the
creation of demand is absolutely necessary
to absorb the production results which
currently manufacturers are experiencing
over capacity.
This research was conducted in the
Greater Jakarta area, because the location
of the Tiga Roda cement factory is in
Citeureup Bogor, so the Jabodetabek area
is a home market share that needs to be
maintained because it is a very strategic
market where the company's image
represented by the brand image is at stake
because it involves the credibility of the
Tiga Roda brand. which must continue to
exist in its own territory.
Other factors, the rate of population
growth, the growth of the middle class
(Komlos, 2018), the trend of urbanization
and the increase in commuters who work in
Jakarta from the surrounding satellite cities,
so as to encourage the need for decent and
comfortable houses to live in and it is
consumption, because cement is a raw
material for cement production. the main
raw material for the manufacture of houses
or buildings for which until now there is no
substitute material for cement.
In addition to being optimistic about
the increase in cement demand based on
the factors above, in reality something
unexpected happened, namely the COVID-
19 pandemic that was evenly distributed
throughout the world (Qutob & Awartani,
2021), Indonesia was no exception exposed
to the spread of this epidemic and this was
enough to hit the economy at a macro
level. the level of consumption of
secondary goods decreases, people
prioritize primary needs. As a result, the
demand for cement fell due to a domino
effect. With the declining demand for
cement in the first half of 2020, several
cement producers stopped their
production lines for efficiency, but on the
other hand, increased competition
between cement brands on the market
today. The limited market share will be
invaded by many brands, each of which
wants to survive in the midst of a pandemic
that doesn't know when it will end. Steps
taken by producers are launching various
marketing programs to attract more
DOI : 10.36418/jrssem.v1i11.208 https://jrssem.publikasiindonesia.id/index.php/jrssem/index
Customer Satisfaction as the Intervening Variable
consumers to buy their products.
In addition to many new cement brands
emerging, the most real threat arises from
the Dynamix brand cement, where the
owner of this brand is Semen Indonesia,
which is the market leader (Giachetti &
Torrisi, 2018); (Garrido Martinez et al.,
2019). Semen Indonesia succeeded in
acquiring a cement factory with the Holcim
brand, after the acquisition process was
completed, it changed its name to
Dynamix. The location of the factory, which
is very close to the Tiga Roda cement
factory, is a major competitor in the
Jabodetabek area.
PT Semen Indonesia Tbk (SMGR) has
managed to maintain its position as market
leader in the domestic cement industry.
Citing data from the Indonesian Cement
Association (ASI), SMGR Group and PT
Solusi Bangun Indonesia Tbk (SMCB)
control 53.1% of the market share domestic
cement (https://investasi.kontan.co.id).
In second position, there is PT
Indocement Tunggal Prakarsa Tbk (INTP)
which has a market share of 25.5% as of
April 2020. This realization is down from the
end of 2019 which reached 25.6%.
Indocement Corporate Secretary Antonius
Marcos said, (INTP) sold 5 million tons of
cement during the January-April 2020
period. This realization decreased by 8%
compared to (INTP) sales in the same
period the previous year.
(https://investasi.kontan.co.id)
Cement sales of PT Indocement
Tunggal Prakarsa Tbk in the first semester
of 2020 decreased compared to the same
period the previous year. In the first
semester of 2020, the corporation
managed to sell 7.3 million tons of cement.
"This amount decreased by 11.9 percent or
around 994 thousand tons, from the
previous semester," said Indocement
Director, Antonius Marcos in Citeureup,
Bogor Regency, West Java, Sunday
(9/8/2020). According to him, the decline in
sales is part of the impact of domestic
cement demand which fell quite
significantly, which was 7.7 percent.
(https://www.katakini.com/article/36759/p
enjualan-semen-indocement-down-ini-
pengebabnya/).
There are several means to get
customers to have high brand loyalty, such
as through brand image, promotional
programs and physical distribution that
always arrive on time to customers. Brand
image is closely related to the image of the
company that produces its products, a
relatively good brand image and has been
recognized by many people also needs to
be supported by promotional programs
that trigger an increase in purchases, if
there is an increase in purchases,
distribution facilities are needed to deliver
to customers who have ordered. the.
Recognition of the Tiga Roda cement
brand was released by top brand awards,
during 2018 and 2019 as follows:
Table 3. Cement Brand Top Brand Image 2018-2019
No
Brand
TBI 2018
TBI 2019
1
Tiga Roda
56.40%
43.90%
2
Semen
20.70 %
18.40%
Muhamad Apep Mustofa
| 1939
No
Brand
TBI 2018
TBI 2019
Indonesia
3
Holcim
9.30%
12.60%
4
Tonasa
5.10%
9.20%
5
Padang
4.70%
3.60%
Processe
d
source: www.topbrand-award.com
For two consecutive years, the Tiga
Roda brand is in first place with a TBI value
of 56.40% in 2018, then in 2019 a TBI value
of 43.90%. There was a decrease in 2019 of
12.5%, a significant decrease. This decline is
a signal to be more vigilant and is a
homework for the Tiga Roda brand to
increase the value of TBI in the years to
come.
Competition between brands that
occurs in the field is very dynamic,
especially with new brands, they do a lot of
promotions with price discounts, point
programs which are associated with the
amount of purchase volume. Brand image.
Appropriate promotional programs and
distribution that is always on time will
further increase customer loyalty to the
brand.
Brands are very important and need to
be socialized to the public so that they are
more familiar with the brand of a product,
including the incumbent cement brand that
has long existed in the country amidst the
rush of new brands.
Based on the phenomena that have
been described, the central themes that can
be formulated in this research are: Massive
infrastructure development, increasing
middle class and per capita cement
consumption which is still very low in
Indonesia when compared to several
neighboring countries in ASEAN, and
demand for packaged cement is far from
over. higher than bulk, the estimated
consumption growth for the domestic
market is around 4%-5%, on the other hand
there is overcapacity of domestic cement
manufacturers. There was a 12.5% decrease
in the TBI value of Tiga Roda cement in
2019.
Indocement (INTP) which produces
Tiga Roda Cement with Mastertech Formula
'Forever Sturdy Trusted' for building
experts to produce buildings that satisfy
their owners, did not materialize optimally.
The company's efforts to reach shops and
builders by holding a Care Shop have not
fully increased customer loyalty. Semen
Indonesia admits that foreign 'cheap'
cement products are starting to affect
brand loyalty. Customers are tempted by
the lower prices that are widely offered
online through social networks and e-
commerce. However, this influence is not
significant because it is located in an area
that is not the company's main market
(CNN Indonesia, 2019).
Studies reveal that brand loyalty is very
important for the purpose of sustainable
competitive advantage for cement
companies (Husain et al., 2020); (Lv & Wu,
Customer Satisfaction as the Intervening Variable
2021). The ability to identify customers in
profitable cement companies and be able
to create long-term brand loyalty by
strengthening customer relationship
management (CRM) can be formed
through various factors (Yoseph & Heikkila,
2018). The assessment of factors that
influence customers in making purchasing
decisions for cement brands including four
c's customer service also encourages
cement industry products to share
knowledge fairly with Suseno customers
(2019) as well as the hope of obtaining
brand loyalty (Chalotra, 2019); (Mishra &
Sharestha, 2019).
One of the efforts was made through
seven components, namely demographic
characteristics, website and technology,
sales promotion, product level offered, e-
security and e-trust, e-satisfaction and e-
loyalty. Of the seven components, four of
which are customer demographic
characteristics and e-security and e-trust
are effective factors for brand loyalty (Afsar
et al., 2013).
Customer satisfaction as a mediator
between the causes of the emergence of
trust and communication that results in
brand loyalty has become relevant in the
cement industry since the dismantling of
the cartel system in 1994. The entry of new
competitors into the market and global
influence has proven to cause brand loyalty
to decline (Mbango, 2015). Furthermore, by
studying customer satisfaction with
cement, the loyalty effect can also help
improve the company's reputation.
This is also evident during the global
pandemic outbreak. Although it does not
have a direct impact on the cement
industry, PT. Indocement Tunggal Prakarsa
Tbk claims that the level of sales has
decreased significantly. The number of
declines until February 2019 was recorded
at around 4 percent to 5 percent on an
annual basis.
Another study revealed that brand
image and brand trust greatly affect brand
loyalty in cement companies. The
researcher stated that low satisfaction due
to brand image has an impact on customer
loyalty of Holcim cement at PT. Kinco Prima
Batam City in Indonesia. In this regard, a
close relationship between cement
producers and their customers in the
business-to-business becomes a
competitive necessity today. Marketing,
and continuous improvement are very
important to earn revenue and increase
customer loyalty. This means that if there is
a low level of joint work arrangements
between buyers and sellers, the lower the
customer loyalty, and vice versa. Collective
work arrangements will help strengthen
buyer loyalty to suppliers.
Based on a study conducted in the
cement manufacturing industry in Africa, it
was stated that the three constructions of
relational marketing namely trust,
commitment, and satisfaction, therefore
loyalty cannot be held. Without supplier
competence and good communication is
also the cause of low customer satisfaction.
Brand equity, relationship quality,
relationship value are closely related to
customer loyalty. Without these three, it is
difficult to bring products closer to
customers, especially to build customer
loyalty in the midst of rapid competition
and also foreign products in the domestic
market. The mediating role of customer
satisfaction, especially because of the
Muhamad Apep Mustofa
| 1941
marketing strategy positively affects
customer loyalty. In addition, based on the
results of research conducted, it is
explained that the high competitiveness of
cement brands in Malaysia shows an
influence that can result in increased
lifetime profits for customers.
Critical analysis reveals that low
customer satisfaction as a result of low
brand loyalty influenced by social media,
promotions that are not as promised, and
distribution that has not brought products
closer to customers affect the cement
industry in Pakistan.
In the midst of the emergence of new
cement brands that erode the market share
of the incumbent who has existed for a long
time, then what are the opportunities for
the incumbent to maintain his hegemony
so that it still exists and is in demand in the
market and has consumers who are loyal to
the brand, the authors are interested in
researching: how much influence brand
image, promotion and physical distribution
have on brand loyalty with customer
satisfaction as the intervening variable.
Assuming, if a cement brand has a good
brand image that has been recognized by a
credible institution, then carry out effective
promotions to build a positive image and is
supported by excellent and measurable
physical distribution services by utilizing up
to date. customers who buy the cement
brand are satisfied, so that brand loyalty is
increasing which is indicated by
continuously buying the brand. Based on
this background, the author sets the title
study, "The effect of brand image,
promotion and physical distribution on
brand loyalty with customer satisfaction as
an intervening variable, empirical study of
Tiga Roda cement brand on members of REI
Jabodetabek."
METHODS
Research This research is quantitative
research with a correlational approach. The
correlational approach tries to relate one
variable to another. This research can also
be categorized as a descriptive study.
Descriptive research because the research
data is described so that it can be known
the mean, median, mode, standard
deviation, variance, kurtosis, skewness,
maximum, minimum, range, and others.
Verifikatif because it will try to verify the
hypothesis with field data whether the
hypothesis is accepted or not. This research
data includes primary data (taken from
respondents who fill out the instrument)
and secondary data sourced from
documentation, books, journals, year-end
reports, and various data that have been
published by the Tiga Roga brand cement
company on the internet.
1) Data Collection Methods
a) Testing the Validity of Measuring
Instruments/Research Instruments
Data was collected through
questionnaires, before the
questionnaires were distributed to
respondents, they must first go
through a validity test. Validity test
is used to determine whether or not
the instrument items are valid.
Reliability test is used to determine
the consistency of the measuring
instrument when used in other
places at different times and with
different respondents.
The instrument is said to be
Customer Satisfaction as the Intervening Variable
valid when the correlation index is
0.3 and the Pearson Product
Moment correlation coefficient is >
r table, but it can also be seen from
the significance that it must be less
than 0.05 (with a 95% significance
level). Pearson Product Moment is
as follows :
Where :
r : Correlation Coefficient
n : Number of Respondents
:
total score of answers
calculated with the formula:
The condition is, when t
count
> t
table
, the data can be said to be
significant or valid, and feasible to
be used in research including
hypothesis testing. However, when
t
count
t
table
, it can be said to be
insignificant or invalid, so it cannot
be used to test the hypothesis. All
valid statements are tested for
reliability.
X2 : sum of squares of item scores
Y2 : sum of squares of total score of
answers
XY : sum of multiplication scores
answer an item with a total score
After the correlation number is
known, then the t value of r is
RESULTS AND DISCUSSION
Based on the data obtained results
about the location of companies that fill
out the instrument as follows.
Table 4. Number of Respondents by Region
Total
%
DKI
Jakarta
69
27.6
Depok
43
17.2
Bekasi
47
18.8
Tangerang
48
19.2
Bogor
43
17.2
Total
250
100
Source: Results of data analysis 2021
Table 4 provides information that the
number of the largest sample was from DKI
Jakarta with 69 respondents (27.6%),
followed by Tangerang 48 respondents
(19.2%), Bekasi 47 respondents (18.8%),
Depok and Bogor each 43 respondents
(17.2 %).
The age of the respondents based on
the analysis results are all over 30 years old.
The education of the respondents can be
seen in the following table.
Muhamad Apep Mustofa
| 1943
Table 5. Respondents Based on Education
Education
Details
Number
of Education
S1
S2
S3
Others
19
50
0
15
2
5
5
0
78
20
0.
2%
1
%
%
%
0
0
%
Source: Primary data processed, 2021
The data above shows that there are
195 respondents with an undergraduate
background (78%), there are 50 masters
(20%), no one has doctoral education
(0.0%), and there are 5 diploma/high school
students (2%). Thus, in the diagram above,
the majority of research respondents have
an undergraduate education.
Table 6. Respondents Based on Working Period
Details
Number
1-2
years
3-4
years
5-6
years
>6
years
29
155
49
17
250
11.6
%
62%
19.
6%
6.8%
100
%
Source: Primary Data processed, 2021
From the data above it can be
concluded that, respondents with a
working period of 1-2 years there are 29
people (11.6%), between 3-4 years there
are 155 people (62%), between 5-6 years
there are 49 people (19.6%), and > 6 years
there are 17 people (6.8%). Thus, the
majority of research respondents have
worked for 3-4 years.
Table 7. Respondents by Gender
Description
Gender
Total
Male
Female
of
199
51
250
79.6
%
100%
20.4%
Source: Primary data processed, 2021
DOI : 10.36418/jrssem.v1i11.208 https://jrssem.publikasiindonesia.id/index.php/jrssem/index
Customer Satisfaction as the Intervening Variable
Respondents who became the research
sample were female as many as 51 people
(20.4%) meanwhile male sex as many as 199
people (79.6%). Thus it can be understood
that the number of men is more than
women.
Description of Variables Descriptive
Analysis is more directed at the
description of the data, among others,
minimum, maximum, mean, median, mode,
standard deviation, variance and others.
a) Description of Brand Image Variables
Brand
Image is a collection of several
cognitive, emotional, and behavioral
dimensions that can be observed
through six indicators, namely:
cognitive (2 items), emotional (2 items)
and behavioral (2 items). The total items
submitted for the statement are 6
items. Through the results of
descriptive analysis obtained objective
information as follows.
Table 8. Respondents' Answers about
Brand Image
Dimension
Variable
Minimum
Maximum
Mean
Std. Deviation
Cognitive
CM1
4,000
5,000
4,544
0.499
Cognitive
CM2
4,000
5,000
4,543
0.498
Average
4,544
0.4985
Emotional
CM3
1,000
5,000
3.429
0.998
Emotional
CM4
1,000
5,000
_
0.995
Average
0.996
5
1.0116
Behavioral
CM5
1,000
5,000
3.213
1.143
Behavioral
_
_
_
CM4
3.363
1,143
Avera
ge
3.296
Average
CM
3.748
0.870
Source: primary data, processed (2021)
Muhamad Apep Mustofa
| 1945
Figure 3. Citra Merek
From 6 items of brand image
instruments, the mean score is 3.748, SD is
0.870. CM1 related to cognitive /memory of
the brand got the highest score of 4,544.
CM5 item about behavior towards the
brand gets the smallest score that is 3,213.
When viewed from these dimensions,
the highest average is the cognitive
dimension of 4,544, followed by the
emotional dimension of 3,363, and the
lowest is the behavioral dimension with an
average of 3,338.
From the 3 dimensions owned by the
brand image variable, there is a striking
difference between 4,544 to 3,213. The
cognitive factor got the highest average
score, which is 90.88% (empirical score /
maximum score x100%, or 4,544 /5 X 100%
= 90.88%).
However, what needs attention is that
there are two factors, namely emotional
and behavioral, the average is below 4, or if
the percentage is for emotional factors of
3.363/5 X 100 = 67.26%, and behavioral
factors 3.338/5 X 100 = 66.76% . It can be
stated that the overall brand image is still
below 70%. This is something that still
needs to be improved in the future.
This needs to be done considering the
location of the Tiga Roda cement factory is
in Citeureup Bogor, the Jabodetabek area is
a home market share that needs to be
maintained because the market in this area
is very strategic where the company's
image represented by the brand image is at
stake because it involves the credibility of
the Tiga Roda brand which must be
maintained. still exist in its own territory.
This study corroborates the findings of
underlines that the better the brand image
in the eyes of the customer, the higher the
brand loyalty carried out by the customer.
The higher the brand image owned by a
product in the eyes of customers, the better
their loyalty to the brand. Lollebeek et.al
(2014) research is also corroborated by this
study that when the brand image in the
eyes of customers is good, then they will
always be loyal to the brand that has been
fused with their soul.
Concludes that brand image can
increase customer loyalty. People who have
experience with a good brand image will
consume the same brand for a long time. In
fact, he will promote their brand loyalty to
other potential customers to be tempted
by the recommended brand.
Studies reveal that brand loyalty is very
important for the purpose of sustainable
competitive advantage for cement
companies. The ability to identify
customers in profitable cement companies
Customer Satisfaction as the Intervening Variable
and be able to create long-term brand
loyalty by strengthening customer
relationship management (CRM) can be
formed through various factors. The
assessment of factors that influence
customers in making purchasing decisions
for cement brands including four c's
customer service also encourages cement
industry products to share knowledge fairly
with Suseno customers (2019) as well as the
hope of obtaining brand loyalty.
The advantages enjoyed by brands with
strong and consistent customer loyalty
include the ability to maintain premium
prices, greater bargaining power with
distribution channels, reduced costs, strong
barriers to potential new entries into
products or services in the same category.
Another study revealed that brand
image and brand trust greatly affect brand
loyalty in cement companies. Researchers
mention that low satisfaction due to brand
image has an impact on customer loyalty.
In this regard, a close relationship between
cement producers and their customers in
the business-to-business becomes a
competitive necessity today. Marketing,
and continuous improvement are very
important to earn revenue and increase
customer loyalty. This means that if the
level of joint work arrangements between
buyers and sellers is low, the lower the
customer loyalty, and vice versa. Collective
work arrangements will help strengthen
buyer loyalty to suppliers.
Brand equity, relationship quality,
relationship value are closely related to
customer loyalty. Without these three, it is
difficult to bring products closer to
customers, especially to build customer
loyalty in the midst of rapid competition
and also foreign products in the domestic
market.
Brand image becomes more important
in increasing brand loyalty. The brand
image becomes centered on the business
experience which will increase the behavior
of loyal customers (behavioral loyalty) and
loyal attitudes (attitudinal loyalty). Brand
image is also represented by personality to
capture the hearts of consumers and keep
them loyal. Brand image also makes loyal
customers more efficient because it tends
to reduce the length of decision-making
time required and perceived purchase risk
because a brand promises a constant level
of quality. This is where the evidence that
brand image greatly affects customer
loyalty.
The results of this study strongly
support the findings the brand image
construct is able to increase brand loyalty
because brand image consists of symbols,
images, which are stored by customers in
their mint and heart which will be
promoted unconsciously to others to
follow suggestions. they.
In other words, the results of this study
fully support Zhang's 2015 finding that
their image is an element of driving
customer loyalty because brand image is a
corporate symbolism that will make
consumers buy their products with
functional and sustainable effects.
It is true what (Keller, 2013)said that
brand image is a customer's beliefs, ideas,
and impressions of a brand that will lead
them to be loyal to a brand whose quality
is believed to be. Consumers choose a
brand or product and have more loyalty to
the brand because the brand has a very
good image.
Muhamad Apep Mustofa
| 1947
Three Wheel Cement with Mastertech
Formula 'Forever Sturdy Trusted' must be
realized maximally. The company's efforts
to reach shops and builders by holding a
Care Shop have not fully increased
customer loyalty. Semen Indonesia admits
that foreign 'cheap' cement products are
starting to affect brand loyalty. Therefore,
Tiga Roda brand cement must continue to
build a brand image so that customer
loyalty can be maintained and improved.
Customers should not be tempted by the
lower prices that many competing brands
offer online through social networks and e-
commerce.
Brand image is the basis of consumer
cognition to be loyal which is motivated by
the affection process and evaluation of
product quality carried out by the majority
of consumers. Brand image acts as an
important signal for consumers to
repurchase products that have been
consumed, as well as a way to differentiate
the brand from its competitors.
The interaction of brand image in brand
communities on social media translates
into a relationship between brand
community dynamics (practices and
relationships within the community) and
customer loyalty.
So brand image really affects customer
loyalty as found by (Brakus et al., 2009) that
brand love needs to be considered because
it greatly affects customer loyalty. Another
finding states that brand image is gaining
momentum because it reflects the
dynamics of the brand relationship more
comprehensively with customer loyalty.
Between cement consumers, especially
between old consumers and new potential
customers, in principle, they always
communicate about the best cement brand
according to them, and an agreement
arises between them so that when the old
consumer's opinion is approved, the loyalty
of the old consumer will be higher, and new
consumers will be added. have the
opportunity to become loyal consumers of
the brand.
The results of this study support the
findings brand image is built by the
consumers themselves, meanwhile, argues
that consumers will have a good brand
image when they get a promotion from
their trusted friends. Brand image is the
secret of each individual and will be raised
when someone else asks him.
The results of this study support the
findings which state that the dynamics of
life about a product become more crowded
when it is discussed about well-known
brands.
The implication of this finding is that
when a company wants to increase
customer loyalty for Tiga Roda cement, the
company must be able to improve its brand
image to customers. The various
advantages of three-wheel cement that
have been experienced by customers must
be used as an important point in making
various promotions. Promotion by
customers through word of mouth, or now
it can be through social media is much
more powerful than other advertising
means. Therefore, to become a good name
for the Tiga Roda cement brand image,
various efforts can be made while
maintaining product quality, carrying out
various promotions that are able to lift the
brand image, making various souvenir
items for customers to be internalized and
embedded in the customer's brand image.
Customer Satisfaction as the Intervening Variable
which in turn will increase customer loyalty.
CONCLUSIONS
Based on the results of the research
described in the previous chapter, the
conclusions drawn from these findings are
as follows. 1) Based on the results of the
first hypothesis test, it is proven that brand
image has a significant effect on customer
satisfaction. The level of customer
satisfaction is significantly influenced by
brand image by 0.53 and brand image
explains customer satisfaction by 53%,
while the remaining 47% is influenced by
other factors. Thus, the better the brand
image, the higher the customer satisfaction
will be. 2) Based on the results of the
second hypothesis test, it is proven that
brand image has a significant effect on
brand loyalty. The level of brand loyalty is
significantly influenced by brand image by
0.27 and brand image is able to explain
loyalty by 27%, while the remaining 73% is
influenced by other factors. It can be stated
that the higher the brand image, the higher
the brand loyalty. 3) Based on the results of
the third hypothesis test, it is proven that
promotion has a significant effect on
customer satisfaction. The level of
customer satisfaction is significantly
influenced by promotion of 0.29 and
promotion explains customer satisfaction
of 29%, while the remaining 71% is
influenced by other factors. Thus, the better
the promotion, the higher the customer
satisfaction will be. 4) Based on the results
of the fourth hypothesis test, it is proven
that promotion has a significant effect on
brand loyalty. The level of brand loyalty is
significantly influenced by promotion by
0.56 and promotion is able to explain
loyalty by 56%, while the remaining 44% is
influenced by other factors. It can be stated
that the higher the promotion, the higher
the brand loyalty. 5) Based on the results of
the fifth hypothesis test, it is proven that
the physical distribution has a significant
effect on customer satisfaction. The level of
customer satisfaction is significantly
influenced by promotion by 0.12 and
physical distribution explains customer
satisfaction by 12%, while the remaining
88% is influenced by other factors. Thus,
the better the physical distribution, the
higher the customer satisfaction will be. 6)
Based on the results of the sixth hypothesis
test, it is proven that physical distribution
has a significant effect on brand loyalty. The
level of brand loyalty is significantly
influenced by the physical distribution of
0.15 and the physical distribution is able to
explain the loyalty of 15%, while the
remaining 85% is influenced by other
factors. It can be stated that the better the
physical distribution, the higher the brand
loyalty. 7) Based on the results of the
seventh hypothesis test, it is proven that
brand image and promotion together have
a significant effect on customer
satisfaction. The level of customer
satisfaction is jointly influenced by brand
image and promotion with a coefficient of
variation of 0.693. Brand image and
promotion together explain customer
satisfaction by 69.30%, while the remaining
30.70% is influenced by other factors not
explained in the model. The contribution or
contribution of the two variables can be
said to be moderate. The variables that are
predicted to have a major contribution to
customer satisfaction include product
Muhamad Apep Mustofa
| 1949
quality, price, and others. 8) Based on the
results of the eighth hypothesis test, it is
proven that promotion and physical
distribution together have a significant
effect on brand loyalty. The level of brand
loyalty is jointly influenced by promotion
and physical distribution with a coefficient
of variation of 0.603. Promotion and
physical distribution together explain
brand loyalty of 60.3%, while the remaining
39.7% is influenced by other factors not
explained in the model. The contribution or
contribution of the two variables can be
said to be moderate. The variables that are
predicted to have a major contribution to
brand loyalty include service quality,
product quality, price, and others. 9) Based
on the results of the ninth hypothesis test,
it is proven that brand image, promotion,
and physical distribution together have a
significant effect on customer satisfaction.
The level of customer satisfaction is jointly
influenced by brand image, promotion, and
physical distribution with a coefficient of
determination of 0.71 or 71%. The
contribution or contribution of the three
variables can be said to be high. The other
variables that are predicted to have a
contribution include product quality,
service quality, customer value, and others.
10) Based on the results of the tenth
hypothesis test, it is proven that customer
satisfaction has a significant effect on
brand loyalty. The level of brand loyalty is
significantly influenced by customer
satisfaction of 0.36, customer satisfaction is
able to explain brand loyalty by 36% and
the remaining 64% is influenced by other
factors. Thus, the higher the customer
satisfaction, the higher the brand loyalty
will be.
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