ISBN No: 978-602-60017-1-9

PROCEEDINGSOFTHE4THINTERNATIONALJOINTSEMINARAND

COMPANYVISITTORICOHECOBUSINESSDEVELOPMENTCENTRE,

RICOHCORPORATION,GOTEMBA,JAPAN

Heldby

CollegeofBusinessRIKKYOUNIVERSITY

MasterofManagementProgramFacultyofEconomics&BusinessUNIVERSITASPADJADJARAN

Tuesday–Saturday,04-08October2016Tokyo,Japan

ii

ProceedingofThe4thInternationalJointSeminar&CompanyVisittoRicohCompany

Ltd.HumanizingCollaborationBetweenIndonesia&JapanChiefEditor : PopyRufaidah,SE.,MBA.,Ph.DManagingEditor : YudiAzis,SE.,S.Si.,S.Sos.,MT.,PhDISBN : 978-602-60017-1-9LayoutEditor : JoniarFaniWidodo,STTechnicalEditor : IntanSitiAmaliyah,S.SiPublisher : MagisterManajemenFakultasEkonomidanBisnis

UniversitasPadjadjaranContact:Jl.DipatiUkurNo.46Bandung40132Phone:+62-22-2509585Fax:022-2509585Email:informasi@mm.fe.unpad.ac.idOnlineversioncanbeaccessedat:http://mm.fe.unpad.ac.id/en/proceedingsAllrightreserved.Nopartofthispublicationmaybereproduced,storedinaretrievalsystem,ortransmittedinanyformorbyanymeans,electronic,mechanical,photocopying,recordingorotherwise,withouteitherthepriorwrittenpermissionofthepublisher.

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TableofContentsDescriptions PageTableofContents iWelcomeSpeeches 1ParticipantList 8Abstract 22FullPaper 701. AnalyzingAndImprovingTheServiceFlowAtPharmacy

UnitOfRSPMNCicendoUsingLeanSixSigma71

2. The Influence Of Service Quality And Customers’SatisfactionTowardsRe-Purchase Intention(SurveysOnSneaklinShoesLaundryInBandung)

82

3. Testing Weak Form Of Efficient Market Hypothesis: AStudyInIndonesiaStockExchange

96

4. AnalysisStudyOnTheImpactOfProductAttributesAndAfter Sales ServiceTowardBuyingDecision (CaseStudyIn PT. Daya Adicipta Motora – Main Distributor OfHondaMotorcycleInWestJava)

103

5. TheEffectsOfElectronicServiceQuality(E-Servqual)AndBrand Trust Towards Repurchase Intention (Case StudyToOnlineBookingApps.UsersAirbnb.Com)

115

6. EffectOfCityMarketingAndCityImageTowardTouristRevisit Intention: Case Study Toward Traveler InBandungCity

129

7. Analysis Of The Influence Of User Experience TowardUser Satisfaction With Social Media (A Case Study OnSnapchatUserInBandung)

136

8. Analysis Preference Customer & Brand Image TowardCustomer Loyality (Survey To Repurchasing BehaviorBetweenHonda&ToyotaCar)InBandung

154

9. TheRoleOfBrandAwarenessAndBrandImageTowardCustomer Purchase Decision On Japanese’s Low CostGreen Car In Indonesia (Case Study In Toyota MotorIndonesia)

161

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10. Empirical Analysis On Islamic Bank Efficiency InIndonesia:ADataEnvelopmentAnalysisApproach

172

11. Performances Of Balanced Scorecard As A BenchmarkTowards Business PerformancesOf PT. PJB To IncreaseCompetitiveAdvantage

187

12. The Influence Of Entrepreneurship Motivation AndServiceInnovation,ToCompetitivenessTowards(ACaseStudyOnCigondewahFabric’sTradersMirco,Small,AndMedium)

201

13. CreditAnalysisUsingTheChaidAnalysis:CaseStudyOfPTBFIFinance,Tbk

213

14. IT Governance In Indonesia’s Banks: It Value And RiskAssessmentPerspective

227

15. TheInfluenceOfBrandImageAndCompanyReputationTowards PerceptionsOf Customer ValueOn BranchlessBanking Service Of PT Bank Rakyat Indonesia PerseroTbk (Brilink) (CaseStudy:CustomerOfBrilinkAgentOfBRIKCPBatununggal)

240

16. The Identification Of Factors That Influence CorporateFinancial Distress (Study Of Distress Of ManufactureCompaniesInIndonesia)

257

17. The ComparisonOf ServiceQuality For BPJS KesehatanPatients And Public Patients And Its Influence TowardPatientLoyalty

267

18. TheRuleOfSoftSkillsDevelopmentTrainingToImproveHealthWorkerPerformanceAndPatientSatisfaction

277

19. Analyzing Employee Engagement Index (EEI) In PTIndonesiaPower–KamojangGeothermalPowerPlant

294

20. The Role Of Word-Of-Mouth Communication AndConsumer Motivation Towards Consumer DecisionMakingInFuturesInvestment(CaseStudyAtPTValburyAsiaFutures)

309

21. The Influence Of Natural Hedge And Exchange RateFluctuations On Leverage And Cashflow Ratio(StudyAtPTKeretaApiIndonesia(Persero))

321

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22. TheEffectOfWorkLifeBalanceAndJobSatisfactionOnEmployeeTurnoverIntentionAtPTISSIndonesia

329

23. Evaluation Of Performance Management Toward TheService Quality Of Project Management Officer (Pmo)Research And Innovation In Science And TechnologyProject (Riset-Pro) At The Ministry Of Research,Technology And Higher Education (Kemenristekdikti) InGiving Satisfaction To The Participants Of Riset-ProDegreeAndNon-DegreePrograms

345

24. The EffectOf AssetManagement And LiquidityOn TheStock Price Of Property And Real Estate CompaniesListed On The Stock Exchange For The Period 2010 –2015

353

25. TheEffectOfLocation,PublicFacilitiesAndAccessibilityToPropertyValueInKotaBaruParahyangan

368

26. Analysis Of Service Quality And Product DiversificationToward Patient Satisfaction (Case Study At ZihanMedicalCenter)

375

PastEventsPhotos:The3rdInternationalJointSeminar&CompanyVisitToRicohCompanyLtd

385

Itenary 387RundownCompanyVisit 388SessionChairsofthe4thInternationalJointSeminar 389OutlineoftheMarketingAnalysisReport 391OutlineoftheCross-CulturalAnalysisReport 392Acknowledgement 393

1

WelcomeSpeech

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WelcomeSpeech

Prof.Dr.dr.med.TriHanggoro.Email:rektor@unpad.ac.id

RectorofUniversitasPadjadjaran

Facingglobalizationin2016ensuresUnpadtostrengthenthecooperationwithRikkyoUniversity.Weareveryproudtobepart of the Internationalization process within MM FEBUnpadwithRikkyoUniversity.WealsoveryproudthatRicohCompanywouldwelcome our students. Looking forward tohavinggreatcollaborationbetweenIndonesiaandJapan.

3

WelcomeSpeech

Prof.NoriyoshiShiraishiEmail:siraisi@rikkyo.ac.jp

SeniorVicePresidentofRikkyoUniversity

Rikkyo University has introduced “Rikkyo Global 24”globalization strategy as a medium-and-long-term plan as amilestone for the university’s 150th anniversary in 2024.Rikkyo Global 24 will be the core of the plan. Within thestrategy,oneofthespecificgoalsforglobalizationpromotionis to expand acceptance of international students.WelcomethedelegatesofMMFEBUnpadtoRikkyoUniversity.

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WelcomeSpeech

Dr.NuryEffendi,SE.,MAEmail:nury.effendi@fe.unpad.ac.id

Dean,FacultyofEconomics&Business,UniversitasPadjadjaran

FEBUnpadisveryproudtoengagewithRikkyoUniversityandRicohCompanyLtd.MMFEBUnpadistheoneoftheschoolswithin the Faculty of Economy and business, UniversitasPadjadjaran. Its mission is to increase the internationalexposureacademicallyandpractically.Wehopestudentsandfacultymembersgaininternationalperspectivesfromthe3rdInternational Joint Seminar between Rikkyo University andMMFEBUnpad.

5

WelcomeSpeech

Prof.AkitaTakahiroEmail:akita@rikko.ac.jp

SpeciallyAppointedProfessor,CollegeofBusiness,RikkyoUniversity

Indonesia is a great country. Building a relationship withIndonesia is veryattractiveexperiences. Japanand Indonesiaare two countries that have shown stronger relationship fordecadees. These relations generate more collaborationacademically. I believe Universitas Padjadjaran and RikkyoUniversity could perform and deliver mutual program inenchancing the collaboration. Additionaly, the company visitto Ricoh Company would enhance the understanding aboutJapanamongstIndonesiastudents.

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WelcomeSpeech

PopyRufaidah,SE.,MBA.,Ph.DEmail:popy.rufaidah@fe.unpad.ac.id

Head,MasterofManagementProgram,FacultyofEconomics&Business,UniversitasPadjadjaran

The4th International JointSeminarholdbyRikkyoUniversityand MM FEB Unpad in Tokyo, Japan is our dedication andcommitment to enhance the quality of educationinternationally. We also very honor to have warm welcomefrom themanagement of Ricoh Company for our delegates.The challenges for graduates from business schools areincreasedveryrapidly.Studentsneedpracticalknowledgeandinternational exposure to align with their capabilities andcompetencies. We would like to thank for all supportcontributed by Rikkyo University, ABEST21, Ricoh Companyand all parties that can not be mentioned one by one formakingthiseventistakenplace.

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PERSONINCHARGED

RIKKYOUNIVERSITYProf.NoriyoshiShiraishisiraisi@rikkyo.ac.jp

Prof.AkitaTakahiro

5056146@rikkyo.ac.jp,akita@rikkyo.ac.jp

UNIVERSITASPADJADJARAN

PopyRufaidah,Ph.D.popy.rufaidah@fe.unpad.ac.id

YudiAzis,SE.,S.Si.,S.Sos.,MT.,Ph.D.yudi.azis@fe.unpad.ac.id

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PARTICIPANTLISTMASTEROFMANAGEMENTPROGRAMFEBUNIVERSITASPADJADJARAN

Popy Rufaidah, Ph.D. HEAD, MASTER OF MANAGEMENT PROGRAM FACULTY OF ECONOMICS AND BUSINESS UNIVERSITAS PADJADJARAN

Yudi Azis, Ph.D. VICE DEAN FACULTY OF ECONOMICS AND BUSINESS UNIVERSITAS PADJADJARAN

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LISTOFPARTICIPANTSOFTHE4THINTERNATIONALJOINTSEMINARANDCOMPANYVISITTOJAPANCORPORATION

HELDBYRIKKYOUNIVERSITY,TOKYO,JAPANANDMASTEROFMANAGEMENTPROGRAM,UNIVERSITASPADJADJARAN

TUESDAY–SATURDAY,04-08OCTOBER2016(REGULARPROGRAM)

No Photo Identity

1.

Name: JayantiBudimanStudentID: 120820150501Phone: 081322399710Email: jayantibudiman@yahoo.comTitledofthepaper:

EffectOfCityMarketingAndCityImageTowardTravelerRevisit(CaseStudyTowardTravelerInBandungCity)

2.

Name: YovinoDwiputraStudentID: 120820150513Phone: 082126144941Email: yovinodwiputra@gmail.comTitledofthepaper:

EffectOfCityMarketingAndCityImageTowardTravelerRevisit(CaseStudyTowardTravelerInBandungCity)

3.

Name: FebyAmpuhTresnaStudentID: 120820150504Phone: 087722206646Email: febyampuhtresna@yahoo.comTitledofthepaper:

TheInfluenceOfEntrepreneurshipMotivationAndServicesInnovation,ToCompetitivenessTowardsOnCigondewahFabric’sTradersMirco,Small,AndMedium

4.

Name: WulanNurulAeniHasanahStudentID: 120820150543Phone: 081222100092Email: wulannurul1101@yahoo.comTitledofthepaper:

TheInfluenceOfEntrepreneurshipMotivationAndServicesInnovation,ToCompetitivenessTowardsOnCigondewahFabric’sTradersMirco,Small,AndMedium

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No Photo Identity

5.

Name: ClaudiaHesaputriStudentID: 120820150525Phone: 085740339999Email: claudiahesaputri@gmail.comTitledofthepaper:

UsingEconomicOrderQuantitytoDevelopSupplyChainManagementSystem(CaseStudyPT.Boton)

6.

Name: FaizaIstianiStudentID: 120820150505Phone: 085243033499Email: faizaistiani57@gmail.comTitledofthepaper:

UsingEconomicOrderQuantitytoDevelopSupplyChainManagementSystem(CaseStudyPT.Boton)

7.

Name: WidyaYuliartiStudentID: 120820150509Phone: 081322159059Email: widywidyarti@gmail.comTitledofthepaper:

TheApplicationOfBalanceScorecardAsABenchmarkTowardsBusinessPerformancesOfPTPJBToIncreaseCompetitiveAdvantage

8.

Name: NurhayatiRahmanPutraStudentID: 120820150556Phone: 082120027131Email: nrachmanp@gmail.comTitledofthepaper:

TheApplicationOfBalanceScorecardAsABenchmarkTowardsBusinessPerformancesOfPTPJBToIncreaseCompetitiveAdvantage

11

No Photo Identity

9.

Name: SelpiyaniStudentID: 120820150511Phone: 081313146526Email: selpiyani031@gmail.comTitledofthepaper:

EmpiricalAnalysisOnIslamicBankEfficiencyInIndonesia:ADataEnvelopmentAnalysisApproach

10.

Name: SiskeAnaniStudentID: 120820150522Phone: 082191347215Email: anani.siske@yahoo.com

Titledofthepaper:

EmpiricalAnalysisOnIslamicBankEfficiencyInIndonesia:ADataEnvelopmentAnalysisApproach

11.

Name: IrsalFadjriansyahStudentID: 120820150512Phone: 089686911491Email: irsalfadjriansyah@gmail.comTitledofthepaper:

TheEffectsOfElectronicServiceQuality(E-Servqual)AndBrandTrustTowardsRepurchaseIntention(CaseStudyToOnlineBookingApps.UsersAirbnb.Com)

12.

Name: EdoRudiantoToyebHusinStudentID: 120820150514Phone: 087898080844Email: edorudianto92@gmail.comTitledofthepaper:

TheEffectsOfElectronicServiceQuality(E-Servqual)AndBrandTrustTowardsRepurchaseIntention(CaseStudyToOnlineBookingApps.UsersAirbnb.Com)

12

No Photo Identity

13.

Name: FathiHabibaturRahmanStudentID: 120820150515Phone: 081320403636Email: habibahfathi@yahoo.comTitledofthepaper:

AnalysisAndImprovingTheServiceCicendoUsingLeanSixSigmaAtPharmacyUnitRSPMN

14.

Name: AfiyasRayyanDjunaediStudentID: 120820150551Phone: 081298811989Email: afiyas.rayyan@gmail.comTitledofthepaper:

AnalysisAndImprovingTheServiceCicendoUsingLeanSixSigmaAtPharmacyUnitRSPMN

15.

Name: DwiRektaRamadhanStudentID: 120820150520Phone: 088218011928Email: dwi.rekta@widyatama.ac.idTitledofthepaper:

TheInfluenceOfInternetMarketingAndBrandAssociationtoPurchaseInterest(SurveysOnProspectiveCustomerLaundryShoesInBandung,Indonesia)

16.

Name: RefaldyFauziStudentID: 120820150548Phone: 085722823282Email: refaldy.fauzi@gmail.comTitledofthepaper:

TheInfluenceOfInternetMarketingAndBrandAssociationtoPurchaseInterest(SurveysOnProspectiveCustomerLaundryShoesInBandung,Indonesia)

13

No Photo Identity

17.

Name: AgahariAdiwinataStudentID: 120820150521Phone: 087822895742Email: agahariadiwinata@gmail.comTitledofthepaper:

TheRoleOfBrandAwarenessAndBrandImageTowardCustomerPurchaseDecisionOnJapanese’sLowCostGreenCarInIndonesia(CaseStudyInToyotaCompany)

18.

Name: SamuelBerliandoHasiolanPurbaStudentID: 120820150538Phone: 08126000642Email: sammy_muek@yahoo.comTitledofthepaper:

TheRoleOfBrandAwarenessAndBrandImageTowardCustomerPurchaseDecisionOnJapanese’sLowCostGreenCarInIndonesia(CaseStudyInToyotaCompany)

19.

Name: MardalenaHutabaratStudentID: 120820150524Phone: 085311031993Email: mardalena.hutabarat93@gmail.comTitledofthepaper:

TheRoleOfGreenMarketingAndConsumerTrustTowardRevisitIntention(StudyToJapaneseRestaurantsInBandungCity)

20.

Name: SitiAuliaFarhaStudentID: 120820150528Phone: 081320007874Email: sitaw_farha@yahoo.comTitledofthepaper:

TheRoleOfGreenMarketingAndConsumerTrustTowardRevisitIntention(StudyToJapaneseRestaurantsInBandungCity)

14

No Photo Identity

21.

Name: MuhammadIhsanStudentID: 120820150527Phone: 08122198290Email: muhammad_ihsan4889@yahoo.comTitledofthepaper:

TheInfluenceOfProductAttributeAndAfterSalesServiceTowardBuyingDecision(CaseStudyInPT.DayaAdiciptaMotora–MainDistributorOfHondaMotorcycleInWestJava)

22.

Name: FebriyanPratamaDefazStudentID: 120820150533Phone: 081294300028Email: febriyan_21@ymail.comTitledofthepaper:

TheInfluenceOfProductAttributeAndAfterSalesServiceTowardBuyingDecision(CaseStudyInPT.DayaAdiciptaMotora–MainDistributorOfHondaMotorcycleInWestJava)

23.

Name: RifanAthariqNugrahaStudentID: 120820150552Phone: 081320996415Email: athariq.idea@gmail.comTitledofthepaper:

AnalysisPrefferenceCustomer&BrandImageTowardCustomerLoyalityComparisonBetweenHonda&ToyotaCarInBandung

24.

Name: IqbalRasyidRidhaStudentID: 120820150553Phone: 082216052654Email: iqbal.rasyid.r@gmail.comTitledofthepaper:

AnalysisPrefferenceCustomer&BrandImageTowardCustomerLoyalityComparisonBetweenHonda&ToyotaCarInBandung

15

LISTOFPARTICIPANTSOFTHE4THINTERNATIONALJOINTSEMINARANDCOMPANYVISITTOJAPANCORPORATION

HELDBYRIKKYOUNIVERSITY,TOKYO,JAPANANDMASTEROFMANAGEMENTPROGRAM,UNIVERSITASPADJADJARAN

TUESDAY–MONDAY,04-10OCTOBER2016(EXECUTIVEPROGRAM)No Photo Identity

1

Name: EVANKURNIAROSIMANStudentID: 120820150002Phone: 08121424337Email: evan_kr@yahoo.co.id;Occupation: SiteEngineering,PT.PPPracetakTitledofthepaper:

ITGovernanceinIndonesiasBank:ITValueandRiskAssessmentPerspective

2

Name: SITIRUKOYAHStudentID: 120820150003Phone: 082121015951Email: rukoyahst@gmail.com;Occupation: OwnerofZihanClinicMedicalCenterTitledofthepaper:

AnalysisOfServiceQualityAndProductDiversificationTowardInPatientSatisfaction(CaseStudyInKlinikZihanMedicalCenter)

3

Name: ZAKABUDIPRASETIYOStudentID: 120820150008Phone: 081213386621Email: zaka@indonesiapower.co.idOccupation: JuniorExpertofCompentency

Development,PTIndonesiaPowerTitledofthepaper:

TheInfluenceOfCorporateCultureTransformationTowardEmployeesSatisfactionAndEngagementInPTIndonesiaPower

4

Name: MARYATISYANINURSUKMAStudentID: 120820150009Phone: 081224508964Email: mariyati.syani@gmail.com;Occupation: StoreTalent(TalentSpecialist),PT.

MonicaHijaulestari(TheBodyShopIndonesia)

Titledofthepaper:

TheEffectOfWorkLifeBalanceAndJobSatisfactionTowardsToEmployeeTurnoverIntentionsatPTISSIndonesia

16

No Photo Identity

5

Name: ADITYOGILANGRAMADHANStudentID: 120820150010Phone: 081932613863Email: adityo_gr@yahoo.com;Occupation: InternalAuditor,PTJasaSaranaTitledofthepaper:

TheRoleOfWord-Of-MouthCommunicationAndConsumerMotivationTowardsConsumerDecisionMakingInFuturesInvestmentAtPTValburyAsiaFutures

6

Name: MATHILDAPINTHAULLYStudentID: 120820150011Phone: 081931256530Email: mathilda.psully@gmail.com;Occupation: StafatPrivateCompanyTitledofthepaper:

TheRoleofDevelopmentSkillsTrainingtoImprovePerformanceandJobSatisfactioninNursesandMidwives.

7

Name: PANJIDWISATIAMUNAJATStudentID: 120820150013Phone: 081573100100Email: panjidwisatia@yahoo.com;Occupation: RiskAnalyticsHead,PTBFIFinanceTitledofthepaper:

CreditAnalysisUsingChaidAnalysis:CaseStudyOfPTBFIFinance,Tbk

8

Name: WENYWINDYAHAPSARYStudentID: 120820150021Phone: 081220200901Email: weny.windya90@gmail.com;Occupation: MidwifeatMotherandChildHospitalTitledofthepaper:

TheRoleofDevelopmentSkillsTrainingtoImprovePerformanceandJobSatisfactioninNursesandMidwives.

17

No Photo Identity

9

Name: NOVAREVIANTIKARTIKAStudentID: 120820150022Phone: 081221505743Email: nova_revianti@yahoo.co.id;Occupation: RevenueApplicationManagerat

ReveneuOfficeofWestJavaProvinceTitledofthepaper:

IdentifyingFactorThatAffectFinancialDistressFirms(StudyOfDistressManufactureCompanyInIndonesia)

10

Name: FIRMANPRIATNAStudentID: 120820150023Phone: 08122313130Email: firman.priatna@pertamina.com;Occupation: SeniorCivilConstructionEngineerPT

PertaminaEpTitledofthepaper:

EvaluationPerformanceManagementOfProjectManagementOfficer(Pmo)Riset-ProAtTheMinistryOfResearch,Technology,AndHigherEducationInGivingSatisfactionForDegreeAndNon-DegreeParticipants

11

Name: TIARALARASATIStudentID: 120820150028Phone: 081202044460Email: larasati_tya@yahoo.com;Occupation: GeneralPractitioneratPratamaClinicTitledofthepaper:

TheComparisonOfServiceQualityOfBpjsKesehatanPatientsAndGeneralPatientsTowardToPatientLoyalty

12

Name: NOVITHASARIWULANStudentID: 120820150029Phone: 085624124444Email: 49615@kereta-api.co.id;Occupation: StafatFinanceDivisionatPTKeretaApi

Indonesia(Persero)Titledofthepaper:

TheInfluenceOfRevitalizationRailwaysAssetAndNonRailwaysAssetOnTheProfitabilityAtPTKeretaApiIndonesia(Persero)

18

No Photo Identity

13

Name: AHMADMUHARROMHADIIWINATAStudentID: 120820150031Phone: 081316431001Email: win.tekim@gmail.com;Occupation: LeaderBranch,PTBankBRIBranchOffice

ofBatununggalTitledofthepaper:

TheInfluenceofBrandImageandCompanyReputationBranchlessBankingServicePTBankRakyatIndonesia(BRI)Persero,Tbk:BRIBranchlessLink(BRILink)toPerceptionsofCustomerValueandCustomerLoyalty(CaseStudy:CustomerBranchlessBankingServiceAgentBRIKCPBatununggal)

14

Name: SYAMSURIJALStudentID: 120820150032Phone: 085352220011Email: errijal@gmail.com;Occupation: KaryawanBUMNTitledofthepaper:

AnAnalysisOfRiskManagementOnIndonesiaPostalIndustry,CaseStudy:PTPosIndonesia(Persero)

15

Name: M.RIDWANADRIAWANStudentID: 120820150033Phone: 085974921130Email: ridwanadriawan@gmail.com;Occupation: BankBJBTitledofthepaper:

TheInfluenceOfAssetDataQualityAndItsImpactsTowardCompanyGrowth

16

Name: FREDDYBUDIONOStudentID: 120820150034Phone: 085346742684Email: freddybudiono@ymail.com;Occupation: StudentofMMFEBUnpadTitledofthepaper:

AnalysisAssesmentTheConceptOfHousing,LocationOfHousing,AndThePriceOfTheValueOfConstructionProjectFinancingLoansInBandung(CaseStudyInPTBankBniSyariahBandung)

19

No Photo Identity

17

Name: ARNOLDUSFRIEDRICHJOHNStudentID: 120820150035Phone: 081320619983Email: af_john06@yahoo.co.id;Occupation: DentistatCahyaKawaluyaanHospitalTitledofthepaper:

TheComparisonOfServiceQualityOfBpjsKesehatanPatientsAndGeneralPatientsTowardToPatientLoyalty

18

Name: AULIAMALITASARIStudentID: 120820150036Phone: 083821322783Email: aulia.malitasari@gmail.com;Occupation: BusinessAnalyst,PTSolmitBangun

IndonesiaTitledofthepaper:

ITGovernanceinIndonesiasBank:ITValueandRiskAssessmentPerspective

19

Name: RAHADIANFITRAStudentID: 120820150037Phone: 0816616962Email: rahadianfitra@gmail.com;Occupation: OfficerBranchOfficeofMTC,PTBank

BJBTitledofthepaper:

TheInfluenceofBrandImageandCompanyReputationBranchlessBankingServicePTBankRakyatIndonesia(BRI)Persero,Tbk:BRIBranchlessLink(BRILink)toPerceptionsofCustomerValueandCustomerLoyalty(CaseStudy:CustomerBranchlessBankingServiceAgentBRIKCPBatununggal)

20

Name: RISKIARIANSYAHStudentID: 120820150038Phone: 082240421889Email: riskiariansyah89@gmail.com;Occupation: EntrepreneurTitledofthepaper:

TheInfluenceOfGovernmentPlanningAndTheDevelopmentRegulationAgainstMarketPriceAndTheInterestOfInvestmentOfLandProperty

20

No Photo Identity

21

Name: INTANKRISNAWANTIStudentID: 120820150039Phone: 082116588600Email: krisnawantiintan98@gmail.com;Occupation: ControllerAndBusinessPartner,

PTSipaSentosaTitledofthepaper:

TheEffectOfWorkLifeBalanceAndJobSatisfactionTowardsToEmployeeTurnoverIntentionsatPTISSIndonesia

22

Name: CHRISTIANDAVIDGOKLASGULTOMStudentID: 120820150043Phone: 081293991660Email: christiandggultom@gmail.com;Occupation: FinancialConsultant,PTValburyAsia

FuturesTitledofthepaper:

TheRoleOfWord-Of-MouthCommunicationAndConsumerMotivationTowardsConsumerDecisionMakingInFuturesInvestmentAtPTValburyAsiaFutures

23

Name: SERODYAKARTIKAWATIStudentID: 120820150046Phone: 081335112575Email: serodyakartika@gmail.com;Occupation: OfficerRiskManagementAudit,

PTTelekomunikasiIndonesiaTitledofthepaper:

IdentifyingFactorThatAffectFinancialDistressFirms(StudyOfDistressManufactureCompanyInIndonesia)

24

Name: ARISULISTYASIHStudentID: 120820150047Phone: 081546448282Email: arisulistyasih@gmail.com;Occupation: SeniorAuditor2,PTKeretaApiIndonesia

(Persero)Titledofthepaper:

TheInfluenceOfNaturalHedge,FluctuationExchangeRateOnLiquidity,Leverage,AndCashflowRatio

21

No Photo Identity

25

Name: HIDAYATStudentID: 120820150049Phone: 082126000092Email: dayat_1090@yahoo.com;Occupation: Marketing,PTBankMaybankTitledofthepaper:

TheInfluenceOfCorporateCultureTransformationTowardEmployeesSatisfactionAndEngagementInPTIndonesiaPower

26

Name: PRITAEVANDARIStudentID: 120820150053Phone: 085793945237Email: pritaevandari92@gmail.comOccupation: Pelajar,MahasiswaTitledofthepaper:

AnalysisOfServiceQualityAndProductDiversificationTowardInPatientSatisfaction(CaseStudyInKlinikZihanMedicalCenter)

27

Name: DIAHPRAMITAARIYANTIStudentID: 120820150057Phone: 081233530706Email: deepramita25@gmail.com;Occupation: AssistantManagerofAccountingat

OperationalAreaofBandung,PTKeretaApiIndonesia(Persero)

Titledofthepaper:

TheInfluenceOfNaturalHedge,FluctuationExchangeRateOnLiquidity,Leverage,AndCashflowRatio

28

Name: CAKAWANDAEMBUTStudentID: 120820150062Phone: 082118772771Email: cakaembut@gmail.comOccupation: AnalystattheMinistryofResearch,

TechnologyandHigherEducationTitledofthepaper:

EvaluationPerformanceManagementOfProjectManagementOfficer(PMO)Riset-ProAtTheMinistryOfResearch,Technology,AndHigherEducationInGivingSatisfactionForDegreeAndNon-DegreeParticipants

22

Abstract

23

ANALYZINGANDIMPROVINGTHESERVICEFLOWATPHARMACYUNITOF

RSPMNCICENDOUSINGLEANSIXSIGMA

FathiHabibaturRahman,StudentID.120820150515

AfiyasRayyan,StudentID.120820150551MasterOfManagementProgram,FacultyOfEconomicsAndBusiness

UniversitasPadjadjaran(MMFEBUNPAD)

ABSTRACT

PurposeHospital pharmacy service is one of the most important activities inhospitals that supporthealth services.Today,mosthospitals in Indonesiahave not made pharmaceutical care activities as we expected. Delays,measurement,medicalerrors,andvariabilityoftenunderminethedeliveryofsafeandeffectivepatientcare.However,itispossibletominimizethembyapplyingsix-sigma.Thismethodologyaimstofocusontherootcausesof healthcare problems, analyses them by flowcharts and fishbonediagrams and produces near-perfect healthcare services. The purpose ofthis research is todetermine the analysis of the serviceof thepharmacyunit RSPMN Cicendo using Lean Six Sigma methods to improve servicequality.Design/methodology/approachAtthebeginningofthisresearch,wecollecteddatafromRSPMNCicendoBandung.Thisstudy isbasedon literaturestudywhichwasconductedbythe authors. The study of literature is derived from a variety of sources,namely textbooks, journals research on hospitals and lean six sigma,service guide from theMinistry of Health, and supporting data from theinternet. In this research, data collection will be done in the hospitalpharmacy. Datawere collected by the observationalmethod, interviews,and recordingofoperationaldataonpharmacy.After thatwith leanandsix sigma methods we will identify the problems/waste and how toeliminatewaste.ExpectedFindingsWeexpectthatbyusingleansixsigmamethodcanimprovethequalityofserviceflowathospitalpharmacyunit.Usingleansixsigmawewillidentifytheproblem/waste that causes ineffective service flowofpharmacyunit.

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By finding the poblem/waste, the pharmacy unit can perform the workmoreeffectively.Originality/valueTheapplicationofsixsigmainhealthcareservicesisrelativelyanewtopicandverylittleresearchhasbeenconductedinthisarea.Thepaperwillbeextremely valuable to researchers and practitioners who are currentlyengagedinsixsigmaresearch.Keyword:serviceflow,pharmaceuticalcare,leansixsigma

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THEINFLUENCEOFSERVICEQUALITYANDCUSTOMERS’SATISFACTION

TOWARDSRE-PURCHASEINTENTION

(SURVEYSONSNEAKLINSHOESLAUNDRYINBANDUNG)

DwiRektaRamadhan,StudentID.120820150520

RefaldyFauzi,StudentID.120820150548MasterOfManagementProgram,FacultyOfEconomics,AndBusiness

UniversitasPadjadjaran(MMFEBUnpad)

ABSTRACT

PURPOSEKnowing the level of quality of service is an important thing to do for abusiness.Theeffortswhichhavebeendonebyserviceproviders throughthe service quality determine the customers’ satisfaction of the servicesprovided.Eitherhighorlowservicequalityaffectscustomers’intentionstore-visit or purchase the same services. Because maintaining a goodrelationship between the customer and the company, or in other wordskeeping the customers purchasing company’s products is not easy. Thepurpose of this research is to study the influence of service quality andcustomers’satisfactiontowardsre-purchaseintention(surveysonSneaklinlaundryshoesinBandung).MethodologyThisresearchwillusetheprimarydatagatheredfromthequestionnaire.Itconsistsofanumberofquestionsrelatedtotheinfluenceofservicequalityandcustomers’satisfactiontowardsre-purchaseintention.Datacollectiontechniques performed in the form of a questionnaire containing 35statementsanddistributedto100respondents.Themethodswhichwillbeused in this research are descriptive and verificationmethods. Statisticalanalysis tools are used in the form of regression analysis using SPSS. Intestingthehypothesis,thewriterswillusethef-testandt-teststatisticsatthe5%significancelevel.ExpectedFindingThehypothesis developed in this study is the influenceof servicequalityand customers’ satisfaction towards re-purchase intention (surveys onSneaklinshoeslaundryinBandung).

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PracticalimplicationFrom this research, writers hope that the companies will know theinfluence of service quality implementation and customers’ satisfactiontowards re-purchase intention. Thus, the companies that haven’timplemented service quality will consider using it to improve theircustomers’satisfactionandtheirre-purchaseintention.Originality/ValueThis research provides information related to the influence of servicequalityandcustomers’satisfactiontowardsre-purchaseintention(surveysonSneaklinshoeslaundryinBandung)Keywords:ServiceQuality,Satisfaction,Customer’sRe-purchaseintention

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TESTINGWEAKFORMOFEFFICIENTMARKETHYPOTHESIS:ASTUDYIN

INDONESIASTOCKEXCHANGE

FaizaIstiani–120820150505

ClaudiaHesaputri–120820150525MasterofManagementProgramFacultyofEconomicsandBusiness

UniversitasPadjadjaran

ABSTRACT

PurposeThisstudywillobserve IndonesiaStockExchange in thepresentdaysandclassifyIndonesiaStockExchangeaccordingtoEfficientMarketHypothesistheorybytestingtheweakformofefficientmarkethypothesisinIndonesiaStockExchange.MethodologyMethodused in this study is quantitativemethod.Dailymarket return istakenasindividualvariableandwillbecalculated.Theresultofdailyreturnindexisusedtodevelopdescriptivestatisticsanalysis,whichinturnisusedtodeterminethecentral tendencydistributionof indexreturn.After thatwewill conduct run test, autocorrelation test and regression test to testthe hypothesis. To examine randomness behavior between index return,Wald-Wolfowitz Run Test will be conducted. The next test isautocorrelation test. Autocorrelation test is used to see the relationshipbetweentimeseriesanditsvalueatvariouslags.Fromtheautocorrelationtest result we can make regression equation to show the relationshipbetweenvariables.ExpectedFindingTheexpectedfinding isthemarketcondition in IndonesiaStockExchangemightbenotefficientinaweakform.PracticalImplicationThispaper iswritten tohelp thosewhomightbe interested in IndonesiaStockExchange,specificallyIHSGtomakeadecisionbasedontheformofIndonesiaStockExchangeaccordingtoEfficientMarketHypothesisandasastudymaterialforstudents.

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Originality/ValueThe originality of this paper is about testing the weak form of efficientmarket hypothesis in Indonesia Stock Exchange. This paper is limited intermsof researchcoveragewithonly fromJakartaComposite Index fromJanuary 1st, 2012 until December 31st, 2015. Further research with adifferentscopeon IndonesiaStockExchangemightbeneededtoconfirmtheresultofthispaper.Keywords:EMH,IndonesiaStockExchange,MarketEfficiency,WeakForm.

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ANALYSISSTUDYONTHEIMPACTOFPRODUCTATTRIBUTESANDAFTER

SALESSERVICETOWARDBUYINGDECISION

(CASESTUDYINPT.DAYAADICIPTAMOTORA–MAINDISTRIBUTOROF

HONDAMOTORCYCLEINWESTJAVA)

MuhammadIhsan,StudentID.120820150527

FebriyanPratamaDefaz,StudentID.120820150533MasterOfManagementProgram,FacultyOfEconomics&Business

UniversitasPadjadjaran(MMFEBUnpad)

ABSTRACTPurposeCompetition in the transportation business, especially two-wheelersbusinessinIndonesiaisnowincreasinglyprevalentsoastoencouragethemotor vehicle manufacturers to create products or to enhance theirproduct innovationandgivetheopportunitytotheaftersalesservicestomeet the needs and desires of the consumers. Inmarketing, one of themainsupportofmarketeristheproductattributes.Productattributesisanimportant factor that customer will consider before buying a product.Those factors include price, quality, features, design, etc. After-salesserviceisaserviceprovidedbythecompanyasanactofresponsibilityforthe products they sell such as guarantee, accessories provision,maintenance&repairfacility,etc.Thepurposeofthisresearchistostudythe impact of product attributes and after sales service toward buyingdecision in PT. Daya Adicipta Motora which is the main distributor ofHondamotorcycleInWestJava.MethodologyThis researchwill use theprimarydata gathered from thequestionnaire.Thequestionnairewillconsistofanumberofquestionsrelatedtoproductattributes and after sales service and its impact toward buying decision.The population and sample used in this research is PT. Daya AdiciptaMotorainBandung(WestJava)anditscustomerswhohaveboughtand/orwill buy a motorcycle from this company and the sample amount willdeterminewithSlovinFormula.Likertscalewillbeusedasthemeasuringscale. After the data from the questionnaire is acquired, writers willanalyzethedatausingSPSS22softwareandthestepsconsistofvalidity&

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reliability test, correlation analysis, regression analysis, coefficientdeterminationanalysisandhypothesistest(t-test&F-test).ExpectedFindingThereisasignificantresult/findinginthestudyofthe ImpactofProductAttributesandAfterSalesServiceTowardBuyingDecision.PracticalimplicationFrom this research, writers hope that the companies will realize theimportanceofproductattributesandaftersalesserviceimplementationinthe competitive advantages and organizational performance to gaincustomer. So, if the company has already implemented the productattributes and after sales service, it is expected that theywill gainmoreandmorecustomersdecidingtobuytheirproductandifthecompanyhasnot implemented it or is not being optimal in implementing it, themanagementwillneedtoconsideroptimizing it inorderto improvetheirsales.Originality/ValueThis research will provide information related to the impact of productattributesandaftersalesservicetowardbuyingdecision.Keyword:productattributes,aftersalesservice,buyingdecision.

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THEEFFECTSOFELECTRONICSERVICEQUALITY(E-SERVQUAL)ANDBRAND

TRUSTTOWARDSREPURCHASEINTENTION

(CASESTUDYTOONLINEBOOKINGAPPS.USERSAIRBNB.COM)

IrsalFadjriansyah,StudentID.120820150512EdoRudianto,StudentID.120820150514

MagisterManagementProgramPadjadjaranUniversity(MMFEBUNPAD)

ABSTRACT

PurposeGlobalizationnowadaybringssignificanteffect inanyotheraspect. Inthishigh-mobilitatedera,globalizationisbeingafactorwhichisgrowthdaybyday.Italsorelatedtoawholebussinessprocessinthisera.Asweknowthebussinessprocessquicklymovingupfromconventionalbussinesstodigitalbussiness.Thisday,thefactorthatbringsanyimpactofdigitalbussinessisinternet usage which increasing continously. Online booking applicationAirbnb.com, is one of the digital or called a marketplace bussiness thatprovide you to rent and booking some room in everywhere. In addition,besides the company get some profit from digital bussiness, they wouldmakesomeaddedvaluetobuildcustomerloyaltywithfullfilingtheirneedsand wants. The purpose of this research is to identify the customerrepurchase intentionfromthedimensionofelectronicservicequalityandalso brand trust to look forwardwhat dominant dimensionof e-servqualthat customer assess, and identify their perception and expectationthroughAirbnb.comMethodologyThe type of research in this study is quantitative approachmethods andprimary data gathered from the tabulation of quistionnaire. Thequestionnaireconsistthenumberofaquestionthatrelatedtodimensionof electronic service quality, through the system availability, privacy,fullfilment or also the efficiency. And dimension of brand trust such thebrand reliability andbrand intention. The sampleused in this research ispeoplewhoeverusedAirbnb.comastheironlinebookingapps.Likertscalewill be used as themeasuring scale, and after the data collectedwriterswill analyze data using SPSS 22.0 software which consist of validity andreliablity,correlation,regressionandalsothehypothesistest.

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ExpectedFindingThemaindimension that customerofAirbnb.comstatedon their systemavailability and also the reliability of their brand. And the gap betweencustomerperceptionandexpectationwouldbeminimalized.PracticalImplicationAim of this research is expected to meet the need of Airbnb.com assuggestions of their policies related to internal electronic service qualityand customer satisfication, as an quality of bussiness improvement anddifferentationfromtheothercompetitor.Originality/ValueThe purpose of this research is to study the impact of THE EFFECTS OFELECTRONIC SERVICE QUALITY (E-SERVQUAL) AND BRAND TRUSTTOWARDSREPURCHASE INTENTION (Case Study toOnline BookingApps.Users Airbnb.com). This research has a limitation in terms of areacoverage, which only covers customer who has tried online bookingapplicationsAirbnb.com.

Keyword:E-Servqual,Brandtrust,RepurchaseIntentions,OnlineBooking,Airbnb.com

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EFFECTOFCITYMARKETINGANDCITYIMAGETOWARDTOURISTREVISIT

INTENTION:CASESTUDYTOWARDTRAVELERINBANDUNGCITY

JayantiBudiman,StudentID.120820150501YovinoDwiputra,StudentID.120820150513

MasterofManagementProgram,FacultyofEconomics,andBusinessUniversitasPadjadjaran(MMFEBUNPAD)

Abstract

PurposeThe purpose of this research is to present the findings based on thepremisesoftheresearchquestion.Thisresearchhasa limitation intermsofareacoverage,whichisonlyinBandungcity.Furtherresearchisneededtoget the informationabout the impactofcitymarketingandcity imagetowards tourist revisit intention. This research will provide informationrelatedtotheeffectofcitymarketingandcityimagetowardstouristrevisitintention.Design/Methodology/ApproachThis researchwill use the qualitative approach. The central focus of thisstudyistoelicittheroleofthecityimageintouristrevisitintention.InthisrespecttheunitofanalysisisBandungCity,WestJava.ExpectedFindingThere is a significant impact of city marketing and city image towardstouristrevisitintention.PracticalimplicationAuniversalmethodologybasisusedtomeasuretouristrevisitintentionbyusing citymarketing, city imageand its attributes at different interactionpoints across a single destination would thus help in identifying theweakestelementsinadestination’sintegratedofferandprovideavaluableinputformanagerialdecisionmakingprocesses.Originality/ValueThis research will provide information related to the impact of citymarketingandcityimagetowardstouristrevisitintention.Keyword:productattributes,citymarketing,cityimage,andtouristrevisit.

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ANALYSISOFTHEINFLUENCEOFUSEREXPERIENCETOWARDUSER

SATISFACTIONWITHSOCIALMEDIA

(ACASESTUDYONSNAPCHATUSERINBANDUNG)

MardalenaHutabarat,StudentId.1208200150524

SitiAuliaFarha,StudentId.1208200150528MasterofManagementProgram,FacultyofEconomicsandBusiness

UniversitasPadjajaran(MMFEBUNPAD)

ABSTRACT

Purpose:Internetuserscontinuetoincreasefromtimetotime,alongwiththe increasing cell phones, tablets and laptops throughout the world. Inaddition, social media drive the explosion of Internet users around theworld. Snapchat is one kind of social media where you can show youractivities with your friends and families. As a newer feature to theapplication,themostpopularcomponentinSnapchatcurrentlyisthestorypage.Here,userscanpoststoriesconsistingofmaximum10secondclipsofphotos,videos,oracombinationofthetwo,thatcanbestrungtogetherand remain visible for 24 hours.While the idea of a temporarymessageseemscounterintuitivetoabrand’smaingoal,thisareaofSnapchatisonethat is becomingmore popularwith specific industries as they recognizethe importance of an engaged rather than passive audience. Whilepreviously available Brand Stories cannot be purchased by advertisersanymore, thestory feature isnowprovinganeffectiveandengagingwayfor businesses to reach a vast audience. Focusing on beautiful andresponsivedesign,snapchatbecameaplacetobeyourselfandshareyourlifemomentswithyourfamiliesandfriends.Thisresearchaimstofindoutthe influence of user experience related to Snapchat user satisfaction inthecityofBandung.Methodology: This research used quantitative research methods andfocusedon analysis the influence of user experience related to SnapchatusersatisfactioninthecityofBandung. Inthisresearch,thedataanalysiswasusingsimple linearregressionanalysistechnique.PopulationusedonthisresearchwascitizensofBandungwhohaveanduseSnapchataccount.The Amount of samples inthis research was 385 respondents andtechnique used was non-probability technique with purposive samplingapproach.

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ExpectedFinding:ThepurposeofthisstudyistodeterminetheresponseoftheSnapchatuserexperiencetoSnapchatusersatisfactioninBandung,toknowthesatisfactionoftheSnapchatuserstoSnapchatUserExperienceinthecity,todeterminetheinfluenceofSnapchatUserExperiencetothesatisfactionofSnapchatusers inthecityandtodeterminehowmuchtheinfluenceofSnapchatuserexperiencetousersatisfactioninBandung.Practicalimplication:Byknowingtheinfluenceofuserexperiencetowardsuser satisfaction in Bandung city, this research can be used to anothersocialmediatoadoptuserexperiencetoincreaseusersatisfactionfortheirbusinessand for researchon theexplanationofwhyuserexperiencecanmakeusersatisfactioninsocialmediaexpeciallySnapchat.Originality/Value: The influence of user experience towards usersatisfaction in social media expecially Snapchat user in Bandung city isconductedasabasis to increaseusersatisfactionandcanbea referenceforthesocialmediainarelatedfield.Keywords: Influence, User experience, User Satisfaction, Social Media,

Snapchat,BandungCity

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ANALYSISPREFFERENCECUSTOMER&BRANDIMAGETOWARDCUSTOMER

LOYALITY

(SURVEYTOREPURCHASINGBEHAVIORBETWEENHONDA&TOYOTACAR)

INBANDUNG

RifanAthariq,StudentID.120820150552

IqbalRasyidRidha,StudentID.120820150553MasterOfManagementProgram,FacultyOfEconomics,AndBusiness

UniversitasPadjadjaran(MmFebUnpad)

ABSTRACT

PurposeCustomer loyality is one of the parameter to describe the customerstatisfactiontowardstheproductalongwithservicewhichofferedbytheautomotive company. In order to achieve this customer loyality theautomotivecompanyneedtomakeseveralgoodmarketingstrategies,thisalso implicates that theabilityof salesof the company is also important.Therefore, Customer prefferences and brand image of automotivecompanyisanimportantthinginordertoobtaincustomerloyality.MethodologyThis research methodology uses a descriptive quantitative methodology,since this researchuses thedata collectedbyusingquestionnaireswhichspreadamongToyotaandHondacustomers.Theresearchersalsospreadthe questionnaire among the laborers of the two companies about theirpreferencesandtheimageofthecompaniestheyareworkingfor.Infinal,the researchers coding the samples to SPSS program to determine theeffectandthecorrelationbeetwenrepurchasingbehaviorthroughouttheanalysisofprefferencecustomer&brandimage.ExpectedFindingThisresearchexpectedtohelpToyotaandHondacompanytohavesomeinsightsaboutwhichkindof strategy theyhave to improve;brand imageandcustomerpreferencesinordertoobtaincustomerloyality.PracticalimplicationInordertoachievecustomerloyality,acompanyisnotalsohastomakeagoodbrand imageglobally,butalso theyneed tomakeadelightful after

37

sales services for customers. Those two points above are the mainperquisitetoobtaincustomerloyality.Originality/ValueThis researchwill provide information and suggestion based on the datafindingsofhowtoobtaincustomerloyalitytowardscustomerpreferences,brandimageforToyotaandHondacompaniesinBandung.Keyword:customerprefferences,brand image, repurchasingdecisionand

customerloyality.

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THEROLEOFBRANDAWARENESSANDBRANDIMAGETOWARD

CUSTOMERPURCHASEDECISIONONJAPANESE’SLOWCOSTGREENCARIN

INDONESIA

(CASESTUDYINTOYOTAMOTORINDONESIA)

AgahariAdiwinata,StudentID.120820150521SamuelBerliando,StudentID.120820150538

MasterofManagementProgram,FacultyofEconomics,andBussinessUniversitasPadjadjaran(MMFEBUNPAD)

ABSTRACT

Purpose:Brand Image and Brand Awareness are two important components thatshouldbeownedbyaproduct.ThisstudydiscussestheBrand ImageandBrandAwarenessofToyotathusaffectingconsumerstousetheirproduct.This study also shows the comparison of car sales between the ToyotaCompany and their competitors, especially on Low Cost Green Carcategory.Methodology:This research uses a descriptive method. Researchers explain the brandimageandbrandawarenesswhichownedbyToyotafromvarioussourcesthataffectcustomersusingToyotacarsespeciallyinthecategorylowcostgreencar.Thisresearchhasthreevariables.Theindependentvariablesarebrand image and brand awareness. The dependent variable is Customerpurchase decision. The data collective are frommany sources like booksandinternet.ExpectedFinding:This study is expected to explain how long The Brand Image and BrandAwareness of Toyota Company affecting Customer Purchase Decision,especiallyonLowCostGreenCarCategory.Practicalimplication:From this research, thewritershope that theToyota companywill knowthe importance of Brand Image and Brand Awareness to gain customerpurchasedecision.So,ifthecompanyhaveimplementedBrandImageandBrand Awareness, it will increase their consumer purchase decision on

39

their product and if they haven’t or aren’t optimal, management willconsiderusingittoimproveandoptimizetheirperformance.Originality/Value:ThispaperdescribeaboutwhatisthestrengthoftherelationshipofBrandImage and Brand Awareness toward customer purchase decision,especiallyonToyotalowcostgreencarcategoryKeyword: Brand Image, Brand Awareness, Customer Purchase Decision,

LowCostGreenCar

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EMPIRICALANALYSISONISLAMICBANKEFFICIENCYININDONESIA:ADATA

ENVELOPMENTANALYSISAPPROACH

Selpiyani,StudentID.120820150511SiskeAnani,StudentID.120820150522

Abstract

Efficiency is a way to measure the performance of a particular businessunit inacompany.Efficiency in thebankingsector isoneofperformanceparameters that is quite popular and is widely used because it is theanswertothedifficultprocessofassessingbankingperformance.Purpose:TheobjectivesofthisstudyaretocompareandexplaintheefficienciesofIslamicbanksandconventionalbanks in Indonesia.ToanalyzethefactorsthatinfluencetheefficiencyofanIslamiccommercialbank.Methodology/Approach:Themethodologythat isusedinthewritingofthisresearchisdescriptivequantitative method to compare the efficiency of Islamic commercialbanksandconventionalcommercialbanks in Indonesia.ThedatathatareusedaresecondarydataintheformoffinancialdatadocumentationthathadbeenpublishedbyBankof Indonesia (website:bi.go.id).TheanalysistoolthatisusedisDataEnvelopmentAnalysisandBanxiaFrointieranalysis(Frontiersoftware).Expectedfinding:Thisresearchisexpectedbeusefulforbanksinassessingthebanks’overallperformanceandto findoutwhich factorsaffect theefficiencyof Islamicbanksperformance.Keyword:IslamicBanks,ConventionalBanks,Efficiency,DEA

41

PERFORMANCESOFBALANCEDSCORECARDASABENCHMARKTOWARDS

BUSINESSPERFORMANCESOFPT.PJBTOINCREASECOMPETITIVE

ADVANTAGE

WidyaYuliarti–120820150509

NurhayatiRahmanP–120820150556MasterofManagementProgram,FacultyofEconomicsandBusiness,

UniversitasPadjadjaran(MMFEBUNPAD)

Abstract

Purpose:This research is aimed to analyze how the balanced scorecard can affectbusiness performances to increase a competitive advantage in a“perusahaanpenyedialistrik”likePTPJB.Itishopedthatthisresearchwillgive a picture that balanced scorecard is an important key as a strategymanagementtorunthebusiness.Design/methodology/approach:Inthisresearch,theauthorsusedobservationandinterviewsatPTPJBthatcontains questions about the variables that cover balanced scorecard,business performance, and competitive advantage. Also, we used datacollection methods to study literature namely by collecting data andinformation from a wide range of literature relating to issues to bediscussed based on a review of the books, textbooks, reports, clippings,newspapers,andinternet.Expectedfindings:Balanced scorecard is an important key to run a business and it canincreaseacompetitiveadvantageforacompany.Originality/value:Theresearchseekstoacceptthatthebalancedscorecardistheimportantkey for running the business. Every company should implement thebalancedscorecardasastrategymanagement.

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THEINFLUENCEOFENTREPRENEURSHIPMOTIVATIONANDSERVICE

INNOVATION,TOCOMPETITIVENESSTOWARDS

(ACASESTUDYONCIGONDEWAHFABRIC’STRADERSMIRCO,SMALL,AND

MEDIUM)

WulanNurul,StudentID.120820150543FebyAmpuhTresna,StudentID.120820150504

MasterofManagementProgram,FacultyofEconomics,andBusinessPadjadjaranUniversity(MMFEBUNPAD)

Abstract

PurposeThe influence of entrepreneurship motivation and service innovation isvery important in supporting the business performance of a business.CigondewahistheareaofBandung’sfabrictradersindustrywhichhastheexcellences in the benefit from the sale of fabricwith a relatively cheapprice. Enterepreneurship motivation and service innovation become thekeysuccessofCigondewahfabrictradersinudustrytocompetewithsimilarbusiness competitors. The effect of entrepreneurship motivation andservice innovationsresults inan increase inthefabricsales intheyearof2014-2015 which indicates a positive result. This research is aimed todetermine the effect of entrepreneurship, motivation, and serviceinnovation of Cigondewah fabric traders micro, small and medium tocompetitivenesstowardsinBandung.Design/methodology/approachThe data used in this research were obtained from interviews andquestionnaires consisting of 15 questions. Those data were distributedamongtotalof88respondentslistedonCigondewatechnicalunitservices.Analysistoolusedtotestthehypothesisispathanalysis.Thetestresultsofdescriptivehypothesisshowthatentrepreneurshipmotivationandserviceinnovation of Cigondewah fabric traders micro, small and mediumenterprises are fair enough. At the same time, the results of verificationhypothesisshowthatentrepreneurshipmotivationandserviceinnovationonCigondewamicro,small,andmediumenterprisesgive impact towardscompetitivenessbothpartiallyandsimultaneously.

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PracticalimplicationFrom this research, the authors expect that the company will know theimportance of entrepreneurialmotivation and innovation services to thecompetitivenessofthesaleofacompany,becausecompetitivenessistheabilityofthecompanytostrengthenitspositioninthefaceofcompetitorstobeabletosurviveevenawininthemarketcompetition.ExpectedFindingsWe hope that by using path analysis method, it can improve thecompetitivenessof sales at cigondewah fabric’s tradersmirco, small, andmediumOriginality/valueThisresearchwillprovideinformationregardingtheimpactofmotivationalinfluenceentrepreneurshipandinnovationservicestothecompetitivenessof a company to be competitive, both at the local, national, and globalenvironment.Keywords: Enterpreneurship Motivation, Service Innovation,Competitiveness

44

CREDITANALYSISUSINGTHECHAIDANALYSIS:CASESTUDYOFPTBFI

FINANCE,TBK

PanjiDwisatiaMunajat,StudentID.12020150013,

panjidwisatia@gmail.comSyamsuRijal,StudentID.120820150032,errijal@gmail.com

MasterofManagementProgram,FacultyofEconomicsandBusinessUniversitasPadjadjaran(MMFEBUNPAD)

ABSTRACT

Purpose–TheaimofthisresearchistoexaminethefactorsthatinfluencetheQualityofNon-PerformingFinancing(NPF)ofDealerFinancingforNewCarproductinPTBFIFinance,TbkduringtheperiodfromQ12014untilQ12016.Design/methodology/approach – This analysis uses the CHAID model.CHAIDmodelwillexplorethevariableswhichsignificantlyaffectthequalityofNon-PerformingFinancing(NPF).Findings – Certain loan-specific factors, particularly, the period of tenorandpercentageof loan to value (LTV) ratio showpositive and significantimpactonthequalityofNon-PerformingFinancing(NPF)inPTBFIFinance,Tbk. The result also prove that a brand name has statistically significantrelationship.Research limitations/implications – The sample is limited to PT BFIFinance,Tbkandmaynotreflectothermultifinancecompanies.Thestudyconsiders the factors of consumers, collateral assets and structures offinancing.Practical implications–PoorqualityofNon-PerformingFinancing(NPF)isa big problem for the stability of a finance company system, thereforeidentificationoftheexactcauseofloanlossesvariabilityisveryimportanttomanagethecompany’sloan.Originality/value – This research is expected to enrich the empiricalresearch andprovidebenefits topolicymakers, especiallywith regard totheoncreditfinancing.Keywords–DecisionTree,CHAIDAnalysis,DataMining

45

ITGOVERNANCEININDONESIA’SBANKS:ITVALUEANDRISKASSESSMENT

PERSPECTIVE

AuliaMalitasari,StudentID.120820150036,aulia.malitasari@gmail.com

EvanKurniaR,StudentID.120820150002,evan_kr@yahoo.co.idMasterofManagementProgram,FacultyofEconomicsandBusiness,

UniversitasPadjadjaran

Abstract

Purpose – Information technology has a very important role in businesstoday. While the usage of IT in the banking industry has supportedbanking’sbusinessprocessesnotonlyasafacilitatortocustomersbutalsotogiveasignificantimpactonitsdailyoperational.TheinvestmentoverITsegment by banks demonstrates the level of reliance over the IT andassociated infrastructure. In this research,someuseful factsaregatheredfromtheITsegmentofthetop10largestBanksbyassetsinIndonesia.Theresearch results can be used as effective guidelines about the status ofBanksinITsectorinIndonesianowadays.ResearchMethodology – The data used are primary data obtained fromquestionnaires which contain specific questions based on the expectedfindingsfilledbyITofficeroreveryonewhoisinchargeofITdepartment.Expected Findings – This paper is expected to provide the mostly usedFramework,MethodsformeasuringthevalueofITprojectandinvestment,Methodologies or Metrics for measuring the performance of ITdepartment,Riskareawhicharemanagedormonitored,methodologyforanalyzing its performance and considered elements whilemeasuring theValueofIT.Thispaperiswrittentoprovidegoodfeedbacktotheregulator,Bank Indonesia and other banking industry and all parties who may beinterested inbanking industrywhichfocusonITgovernance in Indonesia,students,andbusinesspeople.Research Limitation–Theoretically, thereareotheraspects that indicategoodITGovernanceinBankingIndustry.But,thisresearchisconductedat10leadingandinfluentialBanksinIndonesiausingseveralindicatorswhichhaverankingandpoints.

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Originality/Value – This paper is about the status of IT Governance inIndonesia’sBanksnowadaysandhowitaffectstheBanks.Keywords–ITGovernance,ITValue,Assessment,ITRisk,Banking

47

THEINFLUENCEOFBRANDIMAGEANDCOMPANYREPUTATIONTOWARDS

PERCEPTIONSOFCUSTOMERVALUEONBRANCHLESSBANKINGSERVICEOF

PTBANKRAKYATINDONESIAPERSEROTBK(BRILINK)(CASESTUDY:

CUSTOMEROFBRILINKAGENTOFBRIKCPBATUNUNGGAL)

AhmadMHWinata,StudentID.120820150031,win.tekim@gmail.com

RahadianFitra,StudentID.120820150037,Rfitra@bankbjb.comMasterofManagementProgram,FacultyofEconomicsandBusiness,

UniversitasPadjadjaran

AbstractPurpose-Brandimageandcompanyreputationarehypothesisedtohavemultipleprimaryandsecondary influencesonperceptionsofproductandservicequalityaswellasperceptionsofcustomervalue.Wealsorecognizethat while brand image and company reputation are distinctly differentconstructs, they are likely to be associated with and have a mediatinginfluence on each other. The purpose of this paper is to develop anintegratedmodelthatexplicitlyaccountsforinfluencesofbrandimageandcompany reputation towards perceptions of quality, value and loyalty ofBRIlinkAgentofBRIKCP(Sub-BranchOffice)Batununggal.ResearchMethodology - This research usesmixedmethods design,withexplanatory sequentialmixedmethodsmodel. The variables used in thisstudyarebrand image (X1)andcompany reputation (X2)as independentvariables,andperceptionofcustomervalue(Y1)asdependentvariable.Alldata gathered from questionnaires are analyzed by using multipleregression analysis methods. The samples used in this study are BRIlinkagentsofBRIKCPBatununggal.Expected Findings–This research isexpected toprovide justification forthe hypotheses about the relationships that underpin our conceptualmodeofhowbrandimageandcompanyreputationmayaffectperceptionsof customer value on BRIlink agent of BRI KCP Batununggal . Based onthese findings, the author could provide some suggestions in how todevelopand increase thecompetingonvalueand look for famousbrandandsuperiorcustomervaluebymanagingperceptionsofcustomervalue.Research Limitation – Theoretically, there are other aspects that affectperceptionsofcustomervalue.Therefore,weneedtodomoreresearchto

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comeupwithsolution,besidesbrandimageandcompanyreputation,thateffectsperceptionsofcustomervalue.Originality / Value – This research examines how brand image andcompany reputationmayaffectperceptionsof customervalueonBRIlinkagentofBRIKCPBatununggal.Keywords:Brand image,CompanyReputation,Customervalue;Customer

Loyalty,BRIlink

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THEIDENTIFICATIONOFFACTORSTHATINFLUENCECORPORATE

FINANCIALDISTRESS

(STUDYOFDISTRESSOFMANUFACTURECOMPANIESININDONESIA)

NovaReviantiK,StudentID.120820150022,nova_revianti@yahoo.co.id

SerodyaKartikawati,StudentID.120820150046,serodyakartika@gmail.com

MasterofManagementProgram,FacultyofEconomicsandBussiness,UniversitasPadjajaran(MMFEBUNPAD)

Abstract

Purpose–Thisarticleisaresearchproposalaimedtoidentifyfactorsthatinfluence financial distress, by using companies listed on the IndonesiaStockExchange(IDX)during2010–2015.Financialdistressisasituationofnot being able to paymaturedebts or expenses,which involves liquidityproblems,insufficiencyofequity,defaultdebtsandlackofcurrentassets.Furthemore, this study aims to examine financial situation of Indonesia’scompanieslistedinIDX,andgroupesthemintodistressed,sustainable,andhealthy categories. The study also examines financial factors such asliquidity ratio thataffect financialdistress,andcompares sustainableandhealthycompaniestothedistressedones.Identifyingwhethercompaniesare facinga financialdistress is importantbecause it is the first sign of bankruptcy. So, by knowing their financialposition,companiescanimprovetheirperformanceandhandleitwell.Research Methodology – This paper uses quantitative researchmethodology to answer questions about relationship among measuredvariables.It uses multinominal logistic regression and developed multiplediscriminantanalysis(MDA)modelbyAltman(1968)toprovidesomeideasabout the financial soundness of the selected listed companies inIndonesia.Theindependentvariablesareliquidityratios(currentanddebtratios)andthedependentvariableisfinancialdistress(AltmanZscore).Expected Findings – This paper is expected to provide a classification ofcorporatefinancialperformancebydividingthecompaniesintothosewithgood financial health, heading towards unhealthy financial distress and

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bankruptcy,andthosethatareingreyarea.Italsotriestoexaminefactorsthatinfluencefinancialdistress.ResearchLimitation–ThisresearchisonlyconductedatlistedcompaniesinIndonesia(IDX).Thisresearchcanbeusedtoanalyzefinancialhealthoflistedcompaniesandtoimprovetheirperformance.Originality/Value–Thestudyprovidesanindicationoffinancialdistressincompanies listed on the Indonesia Stock Exchange (IDX) during 2010 –2015.Keywords–FinancialDistress,LiquidityRatio,AltmanZ-Score,IDX.

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THECOMPARISONOFSERVICEQUALITYFORBPJSKESEHATANPATIENTS

ANDPUBLICPATIENTSANDITSINFLUENCETOWARDPATIENTLOYALTY

TiaraLarasati,StudentID.120820150028,larasati_tya@yahoo.com

A.FJohn–120820150035,john.friedrich15@gmail.comMasterofManagementProgram,FacultyofEconomicsandBusiness,

UniversitasPadjadjaran

ABSTRACT

Purpose-JaminanKesehatanNasional(JKN/NationalHealthInsurance)isagovernment program aiming to develop or improve health care services,especially for all the people of Indonesia. The program is conducted byBadan Penyelenggara Jaminan Sosial (BPJS/Social Security AdministrationAgency). All participants who have contributions or dues paid by thegovernment,canobtainhealthcarebenefitsandprotectiontomeetbasichealthneeds.Theimplementationoftheprogramstillhasmanyproblems,startingfromupstream to downstream. In terms of health care services, consumers(patients)oftencomplainabouttheservicessuchas longqueueanddrugstock-out. Incontrast topublicpatients, servicesreceivedbypatientsarelesslikelytoexperiencesuchproblems.To determine the influence of service quality for both BPJS Kesehatanpatientsandpublicpatientsinoutpatientdepartmentonpatientloyalty,ameasurement of patient loyalty to the hospital needs to be done.ManycomplaintsariseaboutBPJS implementation,notonly fromthedoctorormedical personnel, but more often heard, especially form theconsumers/patients. The hospital management needs to evaluate theservicequality forBPJSpatients inoutpatientdepartmentcomparedwiththe service quality for public patients in outpatient department towardpatientloyalty.Methodology - This study is conducted to obtain a description of thecomparison of service quality that includes the dimension of reliability,responsiveness, assurance, empathy, satisfaction and loyalty, for BPJSKesehatan patients and public patients in the outpatient department ofInternal Medicine Clinic of Cahya Kawaluyan Hospital with statisticalmethods.Researchdesignusesmixedmethodsdesign,withexplanatory sequentialmixed methods model. Mixed methods design combines qualitative

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researchandquantitative research,andalsocombines thedatacollectedin this research (Creswell, 2014: 45). In explanatory sequential mixedmethodsmodel,theresearcherusesquantitativeresearch,analyzesusingquantitative research, then sharpens theanalysis resultsusingqualitativemethods(Creswell,2014:46).Thedatacollectionisdonebydistributingquestionnairestopatientswhoare treated in the outpatient department of Internal Medicine Clinic ofCahyaKawaluyanHospitalwhomettheinclusioncriteria.Expectedfindings–Thisstudyisexpectedtofindthecomparisonofloyaltylevel of public patients and BPJS patients in the outpatient department,andisexpectedtofindequalityintheloyaltyofpatientsforbothservices.ResearhLimitation–Thisresearchexaminestheconceptofhospitalservicequalityandpatientsatisfactionfromtheperspectiveofpatients.However,this studydoesnotexplore theperspectiveof serviceproviders.This isalimitationforitonlyconsidersthepatients’view,whichmightbedifferentfromtheproviders’view.Originality/Value - This studyobserveshowpatient loyalty canpositivelyaffectthehospital.Keywords-BPJSKesehatan,Service,Loyalty,Patient,Hospital

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THERULEOFSOFTSKILLSDEVELOPMENTTRAININGTOIMPROVEHEALTH

WORKERPERFORMANCEANDPATIENTSATISFACTION

WenyWindyaH,Student

ID.120820150021.wenywindya.hapsary@gmail.comMathildaP.Ully,StudentID.120820150011.mathilda.psully@gmail.comMasterofManagement,FacultyofEconomicsandBusiness,Universitas

Padjadjaran

AbstractPurpose:Ahospitalhasastrategicfunction intheareasofhealthcareservice, it isrequired tocarryout thedutiesandobligationsofmedicalquality to thepublic. The implementation of hospital functions is determined by itsHumanResources(HR).Thisisimportantbecausethecoreoperationofthehospital-grade functionality can be seen from the involvement ofprofessionals in the hospital. In order to execute a social mission, RSIA(MotherandChildHospital)Lembangmakeseffortstoimprovehealthcareservices for the better quality and to increase patient satisfaction. Inaddition to being required to work in accordance with the standard ofhospital services, standard operating procedures and standards of theprofession, the HR are also required to have soft skills that qualified incarrying out their duties and obligations. This study aims to determinehealthworkerperfomanceandpatientsatisfactionbeforeandafterbeinggivensoftskillsdevelopmenttraining.Design/Methodology/Approach:This is a Pre-Experimental Study,with soft skills development training asthe independent variable (X) and Health Worker Perfomance (Y) andPatient Satisfaction (Z) as the dependent variables. This study uses totalsamplingforhealthworkersinRSIALembangandsimplerandomsamplingforpatients.First,thisstudyundertakesapreliminaryinvestigationasdatabaseline, then conducts soft skills development training in cooperationwiththepsychologistandsoft-skillexpert.Toseeifthereisachangeafterbeinggiventhetraining,anobservation iscarriedout for3months.Dataare obtained through questionnaires, observation and self-assessmentsheets.Thedataareanalyzedusingcorrelationcomparativeanalysis.

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Expectedfinding:Theresultsofthisstudyareexpectedtodeterminetheeffectofsoftskillsdevelopment training method on the improvement of health workerperformance and patient satisfaction and to analyze the comparison ofresultsbeforeandafterthesoftskillstrainingisgiven.Researchlimitationandpracticalimplication:ThisstudyisonlyconductedinRSIALembangandobservationofchangesneedmoretimeperiod.Theresultsofthisstudycanbecarriedoutatthedepartmentofeducationandtrainingorresourcesdepartmentofthehospitalasareferenceinthedevelopmentofhealthcareserviceproviderintherespectiveagencies.Originality/Value:This study focuses on the improvement and development of humanresourcesespeciallyhealthworkersandpatientsatisfactionbydeterminingwhether there are differences in healthworker performance andpatientsatisfactionbeforeandaftertraining.TheresultsofthisstudycanbeusedasrecommendationtomakepolicyatRSIALembang.Keywords : Soft Skills, Training, Perfomance, Health Workers, PatientSatisfaction.

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ANALYZINGEMPLOYEEENGAGEMENTINDEX(EEI)

INPTINDONESIAPOWER–KAMOJANGGEOTHERMALPOWERPLANT

ZakaBudiPrasetiyo;StudentID120820150008;zakabudi@gmail.com

Hidayat;StudentID120820150049;dayat_1090@yahoo.com

MasterofManagementProgramFacultyofEconomicsandBusinessUniversitasPadjadjaran(MMFEBUNPAD)

Abstract

PurposeThis analysis is a research proposal aimed to explore the variables ofEmployee Engagement Index in PT Indonesia Power – KamojangGeothermalPowerPlant. Furthermore, thisproposalaims toobserve themostinfluencingvariablestowardtheEmployeeEngagementIndex.Design/Methodology/ApproachThis research is an explanatory research that aims to test causalrelationshipbetweenvariables.Themethodusedisasurveymethod.Thedata analysis techniqueused is path analysis that examines the interplaybetween variables and determines the direct and indirect influence. ThepopulationinthisstudyistheemployeesofPTIndonesiaPower.ExpectedFindingsTheanalysisisexpectedtofindvariableswithsignificantinfluencetowardtheEmployeeEngagementIndex,sothattheresultofthisstudycanbeareferenceforfurtherHumanCapitalManagementinPTIndonesiaPower.ResearchLimitationandPracticalImplicationThe employee satisfaction and engagement index is based on thecompany’s overall corporate activity especially based on Annual HumanResources Satisfaction and Engagement (HRSE) Survey. Employeeengagement in PT Indonesia Power determines the contribution ofemployeestothecompany’sperformance.Originality/ValueThis analysismayprovide anoverviewofHumanCapitalManagement inPT Indonesia Power so that the result of this study can be used as

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reference material for the evaluation of strategic measures for furthercompany’sperformance.Keywords:EmployeeEngagement,HumanCapitalManagement.

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THEROLEOFWORD-OF-MOUTHCOMMUNICATIONANDCONSUMER

MOTIVATIONTOWARDSCONSUMERDECISIONMAKINGINFUTURES

INVESTMENT(CASESTUDYATPTVALBURYASIAFUTURES)

AdityoG.Ramadhan,StudentId120820150010,Adityo_Gr@Yahoo.Com

ChristianGultom,StudentId120820150043,Christiandggultom@Gmail.Com

MasterOfManagementProgram,FacultyOfEconomicsAndBusinessUniversitasPadjadjaran(MMFEBUnpad)

ABSTRACT

Purpose - Futures investment is an alternative of investment that mostpeopleavoid,evenneverheardof.Itisconsideredtobeaveryriskychoicefor investing money, so most people choose a rather safer alternative.With its high risk, futures investment offers very high return when thetradingprocessisdonewiththerightplanandstrategy.Forthisreason,alot of brokerage firms that offer futures investment such as foreignexchange,commodity,orstockindexfinditmoredifficulttoapproachandattractnewcustomers.ThisresearchistryingtoseehowWord-of-MouthCommunication and Consumer Motivation influence consumers whilemaking decision if or not whether they want to do futures investment.Futures investment is a rather unknown alternative for investment, so asuggestion or reference from another person should be a big factor inmakinganinvestmentdecision.Theinitialmotivationofconsumersinwhytheywanttodoaninvestmentshouldalsobeanotherbigfactor.Byfindingtheroleofthesetwofactors,wecanhaveabetterunderstandingofhowconsumersmakeaninvestmentdecision,specificallyinfuturesinvestment.With these findings, a much better marketing strategy plan can beconductedforPTValburyAsiaFuturesinapproachingandattractingmoreconsumers.Design/Methodology/Approach-Thisresearchistryingtolookfortherelationship between two independent variables towards a dependentvariable. The two independent variables are Word-of-MouthCommunication (X1) and Consumer Motivation (X2). Wheras thedependentvariableisConsumerDecisionMaking(Y).Thetypeofresearchisconfirmatoryfromanexistingtheory,appliedinfinancialproductscalledfutures investment. The data for this research are gathered through

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interviewsandquestionnaires fromthesample.Thesamplecomprisesof150people,whohavedoneorknownabouttradinginvestmentinfutures.ThisresearchwillbedonebyusingStructuralEquationModelling(SEM).ExpectedFindings -Fromthisresearch, it isexpectedseehowstrongtherelationship betweenWord-of-Mouth Communication towards ConsumerDecision Making and also between Consumer Motivation towardsConsumerDecisionMaking.Thisresearchisappliedinfuturesinvestment,which is a sector in financial industry. This research is also done in abrokeragecompanynamedPTValburyAsiaFuturesBandung.Sowiththisresearch,wecanseehowmuchconsumersareinfluencedwhilemakingadecision to do futures investment. Is it influenced by recommendationsfrom other references? Is their initial motivation important? And if it isinfluenced, how strong is it influenced? By knowing these questions, wecan plan a much better strategy in approaching and attracting moreconsumerstobecomeclientsonPTValburyAsiaFutures.Research Limitations and Practical Implications - This research assumesthat the sample are all typical people who are familiar with futuresinvestment, so thisexcludesMuslimswith strongbeliefs. This research isalso limited forPTValburyAsia Future inBandungBranch, so itmaynotapplyforotherbranches.ThisresearchwillbenefitPTValburyAsiaFuturesBandung and all other parties that are interested in Word-of-MouthCommunication,ConsumerMotivation,andConsumerDecisionMaking.Originality - This research is about the strength of relationship betweenWord-of-Mouth Communication and Consumer Motivation towardsConsumerDecisionMaking inPTValburyAsiaFutures.The resultsof thisresearchcanbenefitPTValburyAsiaFutures.Keyword: Word-of-Mouth Communication, Consumer Motivation,ConsumerDecisionMaking

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THEINFLUENCEOFNATURALHEDGEANDEXCHANGERATEFLUCTUATIONS

ONLEVERAGEANDCASHFLOWRATIO

(STUDYATPTKERETAAPIINDONESIA(PERSERO))

ARISULISTYASIH,StudentID.120820150047,arisulistyasih@gmail.com

DIAHPRAMITAARIYANTI,StudentID.120820150057,deepramita25@gmail.com

MasterofManagementProgram,FacultyofEconomicsandBusiness,UniversitasPadjadjaran

Abstract

Purpose:Analysisofnaturalhedgepolicyisimportantbecausethecompanyhaslongterm debt in dollar.Natural hedge serves tomaintain the stability of thecompany’scashflowandabilitytopaydebts.Thepurposeofthispaperisto analyze the influenceof natural hedge andexchange rate fluctuationsonleverageandcashflowratio.Thisresearchfocusesontheinfluenceofnaturalhedgeonthecompany’sabilitytopaydebtsandcashflow.Design/methodology/approach:Inthispaperusesquantitativeresearchmethodtoanswerquestionsaboutrelationship among measured variables.The independent variables arenaturalhedge(X1)andexchangerate(X2),whilethedependentvariablesareleverage(Y1)andcashflowratio(Y2).Expectedfindings:This paper is expected to provide a comprehensive analysis of naturalhedge andexchange rate fluctuations in the form of good financialperformanceatPTKeretaApi Indonesia (Persero).Basedonthis findings,thispapercananalyzethecorrelationamongnaturalhedge,exchangeratefluctuations, liquidity, leverage and cash flow ratio assuggested in thetittle.Originality/value:Thispaper is theonly study that is conductedatPTKeretaApi Indonesia(Persero) inBandungCity, Indonesia. Itmeasuresthe influenceofnaturalhedgeandexchangeratefluctuationsonleverageandcashflowratioatPTKeretaApiIndonesia.Keywords:NaturalHedge,ExchangeRate,LeverageandCashFlowRatio

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THEEFFECTOFWORKLIFEBALANCEANDJOBSATISFACTIONON

EMPLOYEETURNOVERINTENTIONATPTISSINDONESIA

MariyatiSyaniNursukma,StudentID.120820150009,

mariyati.syani@gmail.comIntanKrisnawanti,StudentID.120820150039,

intankrisnawanti17@gmail.comMasterofManagementProgram,FacultyofEconomicsandBusiness,

UniversitasPadjadjaran

Abstract

Purpose – The problem examined in this research proposal is the highemployee turnover rates in PT ISS Indonesia compares with the totalemployee turnover rates in the service industry. The situation thathappens inPT ISS Indonesia indicatesapoor implementationofwork-lifebalance policy, such as the placement of employees near their home, orcompensation and benefit for employees that are inadequate to makethemstay intheorganization.Thepurposeofthisresearchproposal istoexplore the views of PT ISS Indonesia employees about how work-lifebalanceandjobsatisfactionaffecttheirintentiontoleavetheorganization(turnoverintention).Research Methodology – This research uses mix methods design, withexplanatorysequentialmixedmethodsmodel.Thevariablesthatareusedin this study are work-life balance (X1) and job satisfaction (X2) asindependentvariables,andemployeeturnoverintention(Y)asdependentvariable. All data gathered from questionnaires will be analyzed usingmultiple regression analysis method and correlation of Pearson ProductMomentmethod.ThesampleusedinthisstudyisagroupofemployeesofPTISSIndonesiathatarechosenrandomly,whohavebeenworkingforlessthanthreeyearsandhavenon-permanentemployeestatus.ExpectedFindings–Thisresearchisexpectedtoprovideacomprehensiveanalysis result about how work-life balance and job satisfaction affectemployeeturnoverintentioninPTISSIndonesia.Basedonthesefindings,theauthorscouldprovidefeedbackinhowtodecreaseemployeeturnoverintentionthroughthemanagementofemployeework-lifebalanceandjobsatisfaction.Research Limitation – Theoretically, there are other aspects that affectemployeeturnover intention.Therefore,weneedtodomoreresearchto

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come up with solutions that effect employee turnover intention besideswork-lifebalanceandjobsatisfaction.Originality/Value – This research is about how employee turnoverintentioncanbeaffectedbywork-lifebalanceandjobsatisfactioninPTISSIndonesia.Keywords–work-lifebalance,jobsatisfaction,turnoverintention,ISS.

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EVALUATIONOFPERFORMANCEMANAGEMENTTOWARDTHESERVICE

QUALITYOFPROJECTMANAGEMENTOFFICER(PMO)RESEARCHAND

INNOVATIONINSCIENCEANDTECHNOLOGYPROJECT(RISET-PRO)ATTHE

MINISTRYOFRESEARCH,TECHNOLOGYANDHIGHEREDUCATION

(KEMENRISTEKDIKTI)INGIVINGSATISFACTIONTOTHEPARTICIPANTSOF

RISET-PRODEGREEANDNON-DEGREEPROGRAMS

CakawandaEmbut,StudentID.120820150062FirmanPriatna,StudentID.120820150023

MasterOfManagementProgram,FacultyOfEconomicsAndBusiness,UniversitasPadjadjaran(MmFebUnpad)

Purpose:TheobjectiveofthisstudyistoobtaindataonsatisfactionofparticipantsofRISET-Prodegreeandnon-degreeprogramsattheMinistryofResearch,Technology and Higher Education, as the input for the evaluation ofperformancemanagementtoimprovetheservicequalityofPMO.Design/methodology/approach:This study will use primary data collected from questionnaires. Thequestionnairesconsistofanumberofquestionsrelatingtothesatisfactionof participants of RISET-Pro degree and non-degree programs at theMinistry of Research, Technology and Higher Education to examine theservicequalityandpolicyofPMO.The researcherswillalsocarryout theprocess of observation and interviews with some of the PMO andconsultantsinvolvedintheperformancemanagementinrelationtoservicequality process on RISET-Pro while expecting a positive impact on thefutureperformanceof thePMO.LikertScale isusedas themeasurementscale. The data collected from the questionnaires, will be translated byusingSPSStoknowthecorrelationbetweenservicemanagementandthesatisfaction of participants of degree and non-degree programs throughthepolicies issuedbythePMOwhichhavea functionashumanresourcedevelopmentatRISET-Pro.Expectedfindings:From this study, the authors hope to obtain information which can beimplemented directly by the PMO to improve service quality in order tobring satisfaction to theparticipantsofRISET-Prodegreeandnon-degreeprogramsandtominimizesomeproblemsinthePMOactivities.

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Researchlimitationandpracticalimplication:This paper is limited in terms of the coverage, that is in the PMOenvironment at the Ministry of Research, Technology and HigherEducation. The paper is written to provide good feedback to theparticipantsofRISET-Prodegreeandnon-degreeprograms.Theresultsareexpectedtobeusedforevaluationand implementationprocessofRISET-ProbythePMO.Originality/valueThis study will provide information regarding the satisfaction ofparticipants of RISET-Pro degree and non-degree programs toward theservicemanagementby thePMO, for thencanbeusedasa reference intheimprovementofPMOservicequalityinthefuture.Keywords:performancemanagement,PMOservicequalitysatisfactionofparticipantsofRISET-Prodegreeandnon-degreeprograms

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THEEFFECTOFASSETMANAGEMENTANDLIQUIDITYONTHESTOCKPRICE

OFPROPERTYANDREALESTATECOMPANIESLISTEDONTHESTOCK

EXCHANGEFORTHEPERIOD2010–2015

NovithaSariwulan,StudentID.120820150029,

novithasariwulan20@gmail.comRiskiAriansyah,StudentID.120820150038,riski.importindo@gmail.comMasterofManagementProgram,FacultyofEconomicsandBusiness,

UniversitasPadjadjaran(FEBUNPAD)

Abstract

Purpose–Theissuesexaminedareassetmanagement,liquidityandstockprices.Thepurposeofthisresearchproposalistoprovideanoverviewandanalysis of the influence, both partially and simultaneously, of assetmanagementand liquidityonthestockpricesofpropertyandrealestatecompanies listed on the Indonesia stock exchange for the period 2010-2015.Research Methodology – This research uses descriptive and verificationmethods with quantitative approach. Independent Variables (X) in thisstudyareAssetManagement ratio,which ismeasured through InventoryTurnover (X1) and Total Asset turnover (X2), and Liquidity ratio asmeasuredbyCurrentRatio(X3)andQuickRatio(X4).DependentVariable(Y) in this study is the stock price (Y) of companies. The data used aresecondarydata,obtainedfromfinancialstatements,financialperformancesummaryandstockpriceofPropertyandRealEstateCompanieslistedonthe Stock Exchange for the period 2010 – 2015. The descriptive analysisuses average value (mean),minimumandmaximumvalues and standarddeviations. While the quantitative analysis uses multiple regressionanalysiswiththeclassicassumptiontest,Pearsoncorrelation,coefficientofdetermination,hypothesistesting,overall(simultaneous)aswellaspartialhypothesistesting(t-test).ExpectedFindings–Thisresearchisexpectedtoprovideacomprehensiveanalysisoftheimagesandinfluences,bothpartiallyandsimultaneously,ofasset management and liquidity on the stock prices of popety and realestate companies listedon the Indonesia stockexchange. The findingsofthis study are expected to be useful for companies and investors inanalyzingliquidityandassetmanagementratiostoassessthestockpricesofthecompanies.

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ResearchLimitation–Theoretically,thereareotherratiosincludedintheAssetManagementRatioand LiquidityRatioof a company. In this study,theresearchersfocusonInventoryTurnoverandTotalAssetTurnoverforasset management ratio, as well as Current Ratio and Quick Ratio forliquidityratio.Originality/Value–Thisstudyillustrateshowtoeffectivelyandefficientlyanalyzeassetmanagementandliquiditythatmayaffectthestockpricesofreal estate companies listed in Indonesia Stock Exchange for the period2010-2015.Keywords–AssetManagement,InventoryTurnover,TotalAssetTurnover,

LiquidityRatio,CurrentRatio,QuickRatio,StockPrice,BEI.

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THEEFFECTOFLOCATION,PUBLICFACILITIESANDACCESSIBILITYTO

PROPERTYVALUEINKOTABARUPARAHYANGAN

MuhammadRidwanAdriawan–120820150033

FreddyBudiono–120820150034MasterofManagementProgramFacultyofEconomicsandBusiness

UniversitasPadjadjaran

ABSTRACT

Purpose–Theobjectiveofthisresearchistofindouttheeffectoflocation,publicfacilitiesandaccessibilitytopropertyvalue(housing) intheareaofKotaBaruParahyangan,Bandung.Thisstudyusesoneofthreemethodsforproperties valuation; the method is a market approach method. Thismethodisthesimplestmethodandthemostaccuratemethodtogetthevalueof theproperty.Theappraiserestimates thedegreeofsimilarityordifference between the subject property and the comparable sales byconsidering various elements of comparison such as real property rightsconveyed, financing terms, conditions of sale, expenditures madeimmediately after purchase, market conditions, location, physicalcharacteristics, economic characteristics, zoning, and non-realtycomponents of value. The property value itself defined as an estimationpriceof theproperty, the result (estimatedprice)will lead “enduser” todecideeitherthepropertyisworthtobuyornot.Methodology–Quantitativeapproach isused inconductingthis research.Themethodappliedby thewriters is descriptivequantitative verificationmethod. Descriptive method is meant to provide a description of asituation or occurrence. This research does not aim to develop a theory,butrathertotestandverifyit.Expected Finding: The results of the study is expected to provide anappraisal of the targeted property in the area of Kota Baru Parahyanganbased on location, public facilities and accessibility as well as propertyvalue (housing); toprovidepartial effectsof location,public facilitiesandaccessibility; and simultaneous effects of location, public facilities andaccessibility.

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Practical implication: By learning on how the situation goes in valuatingtheproperty, how’s theprocessonproperty’s valuation, andwhat is thepurposeof valuating theproperty? The result from itwill giveus a gooddecisiononhavingaproperty forourown investmentor to increase thetotalofacompany’sasset.Originality: This paper is the only research to examine Kota BaruParahyangan, which analyze how’ the valuation goes and to make surethose factors are really influencing the value of the property on themarket.Keyword: Asset, Asset Management, House, Real Estate, Appraisal,Valuation, Real Properties, Property, Properties, Investment, HousingEstate.

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ANALYSISOFSERVICEQUALITYANDPRODUCTDIVERSIFICATIONTOWARD

PATIENTSATISFACTION

(CASESTUDYATZIHANMEDICALCENTER)

SitiRukoyah,StudentID.120820150003,rukoyahst@gmail.com

PritaEvandari,StudentID.120820150053,Pritaevandari92@gmail.comMasterofManagementProgram,FacultyofEconomicsandBusiness

UniversitasPadjadjaran

Abstract

Purpose - Based on information collected, patient satisfaction at ZihanMedicalCenterhasnotbeengood,evidencedbymanyofcomplaintssentdirectlytotheheadoftheclinicandotheremployees,suchasunpunctualexaminationschedulebythedoctor.Besides,intensecompetitioninhealthservices business is more complex and competitive, therefore thiscircumstance is interesting to study. There are indications that patientsatisfaction at ZihanMedical Center is influenced by service quality andproduct diversification. Despite patient’s good impression, there are stillmanycomplaintsdemanding improvementof servicequalityandproductdiversification that show dissatisfaction of patient. Considering theimportance of service quality, product diversification and patientsatisfaction, further research about service quality and productdiversificationtowardpatientsatisfactionisnecessary.Methodology - This research examines the impact of service quality andproduct diversification on patient satisfaction. The methods used aresurveymethods,descriptiveandverificationmethodaswellastheuseofprimaryandsecondarydatawithdatacollectiontechniquesthatstudythedocumentation and study of literature. The design of hypothesis testinguses multiple regression analysis, Pearson correlation, coefficient ofdetermination, t-test and F-test. The location of this research is at ZihanMedicalCenter.Expected Findings - Hypothetically, service quality and productdiversification, both collectively and individually will affect patientsatisfaction.

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Originality/Value - This research provides a good example of servicequalityandproductdiversificationtowardpatientsatisfaction,particularlyfor health services companies that apply service quality and productdiversificationtosatisfythepatients.Keywords–servicequality,productdiversification,patientsatisfaction.

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FullPaper

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ANALYZINGANDIMPROVINGTHESERVICEFLOWATPHARMACYUNITOF

RSPMNCICENDOUSINGLEANSIXSIGMA

FathiHabibaturRahman,StudentID.120820150515

AfiyasRayyan,StudentID.120820150551MasterOfManagementProgram,FacultyOfEconomicsAndBusiness

UniversitasPadjadjaran(MMFEBUNPAD)

ResearchBackgrounds

Hospital pharmacy service is one of the most important activities inhospitalsthatsupporthealthservices.BasedontheDecreeoftheMinisterofHealthNo.133/Menkes/SK/XII/1999onStandardsofHospitalServices,it isexplained that thehospitalpharmacy servicesarean integralpartofthehospital health care system,which areoriented to patient care, highquality medicine supply, including clinical pharmacy service, which isaffordableforallsegmentsofsociety.Today, most hospitals in Indonesia have not made pharmaceutical careactivities as they are expected by the Standards of hospital pharmacyservices,1999).Methodsofleanmanagement,thatisusedinthehospitalpharmacy, reap satisfactory results, among others: Cancer TreatmentCenters of America (CTCA) at Midwestern Regional Medical Center(MRMC)Zion,Illinois,UnitedStatesthathasreducedtheturnaroundtimefor the preparation of chemotherapy by 20% and has decreased thenumberofstepsintheprocessby50%(Lepperetal.2003);ElkhartGeneralHospital, Elkhart, Indiana, has managed to cut the preparation time ofintravenous drug by 90% so it can distribute two clinical pharmacists onfull-time duty, and save costs about $ 1 million from operating costs(Gebhart,2010);MetroHealthHospital,Michigan,hasmanagedtoreducethe time of drug administration by 33%, reducing the number of stepprocessessfrom14to9byremovingunusefulsteps, loweringmedicationerrorsby40%,andreducethecostofdrugannualsuppliesintheamountof $ 153,000 (Haughton, 2006 ); University ofMinnesotaMedical Centerhas managed to hold annual cost of $ 289,256, by implementing leanmanagement approach in the inpatient pharmacy (Heller, 2010); KingAbdullahUniversityHospital,Jordan,hasmanagedtoholdmorethan48%savings in cycle time of inpatient pharmacy services (Al-Araidah et al.,2010).

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Delays,measurementandmedicalerrorsandvariabilityoftenunderminethe delivery of safe, effective patient care. However, it is possible tominimize themby applying six-sigma. Thismethodology aims at focusingon the root causes of healthcare problems, analyses them by flowchartsandfishbonediagramsandproducesnear-perfecthealthcareservices.FromthedataobtainedfromthecomplaintboxofRSPMNCicendoforthepharmacy unit, the complaints consist of long patient waiting time,unavailabilityofdrug, lessresponsiveandfriendlyofficers.Thiscomplaintmayresultinadecreaseofpatientsatisfactionregardinghospitalservices(Siregar, 2004), which states that although the pharmacy is part of thehospital, but its existence is very important in supporting the successfuldevelopment of the professionalism of the hospital and also to theeconomyandcostofhospitaloperations(Chriswardani,1998),whichstatesthat the ease and efficiency of administrative services, including theavailability and completeness ofmedicines in the hospital pharmacy andlongtimeofservicesofhospitalpharmaciesarethefactorsthatdeterminepatientsatisfaction,other thandoctorsandnursesservices factoraswellas the convenience factor of inpatient careunit.Under these conditions,theauthorsare interested inanalyzingand improving the service flowofpharmacyunitofRSPMNCicendousingLeanSixSigma.ProblemFormulation

Theprobleminthisresearchis:1. How is the analysis of the service of pharmacy unit RSPMN Cicendo

usingLeanSixSigmamethodstoimprovethequalityofservice?Researchpurposes

Thepurposeofthisstudyis:1. To determine the analysis of the service of the pharmacy unit in

RSPMNCicendousingLeanSixSigmamethodstoimprovethequalityofservices.

LiteratureReview

StandardFlowofHospitalPharmacyServicesUnit

Pharmacy unit is a functional unit that organizes all pharmacy servicesactivities in the hospital. Standards of Pharmaceutical Services is a

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benchmarkthatisusedasaguidelineforpharmacyworkersinorganizingpharmaceutical services. Pharmaceutical Service is a service directlyresponsible to the patient associated with a pharmaceutical preparationthegoalofwhichistoachieveresultsinimprovingthequalityoflifeofthepatients.RegulationofStandardsofPharmaceuticalServicesattheHospitalaimsat:a. ImprovingthequalityofPharmaceuticalServices;b. Ensuringlegalcertaintyforpharmacypersonnel;andc. Protectingpatientsandthepublicfromirrationalmedicineuseinthe

contextofpatientsafety.

StandardsofPharmaceuticalServicesattheHospitalinclude:a. Management Pharmaceutical Preparations, Medical Devices, and

ConsumableMedicalMaterialsManagement of Pharmaceutical Products, Medical Devices, andconsumable Medical Materials should be implemented in a multi-disciplinary, coordinated in an effective manner, to ensure qualitycontrol and cost control. Administration must be conducted in anorder and sustainable to facilitate searchactivities thatwerealreadypassed.Administrativeactivitiesconsistofrecordingandreporting.Recording and reporting to the management activities ofPharmaceutical Products, Medical Devices, and consumable MedicalMaterials which include demand planning, procurement, receipt,distribution,inventorycontrol,returns,destructionandwithdrawalofPharmaceutical Products, Medical Devices, and consumable MedicalMaterials. Report is made periodically and conducted by pharmacyunit within a specific time period (monthly, quarterly, semesterly oryearly).The types of report are prepared by adjusting to the prevailingregulations.Therecordingispreparedfor:

1) therequirementsoftheMinistryofHealth/BPOM;2) basicaccreditationoftheHospital;3) basicauditoftheHospital;and4) Thepharmaceuticaldocumentation.

Reportingisdoneas:1) communicationbetweenthemanagementlevel;2) preparation of a comprehensive annual report on the

activitiesinthepharmacyunit;and

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3) annualreport. b. Clinicalpharmacyservices.

Clinicalpharmacyservicesaredirectservicesthataregiventopatientsinordertoimprovetherapyoutcomeandtominimizetheriskofsideeffectsofmedicine, for thepurposeofpatientsafety (patientsafety)so the quality of life of patients (quality of life) is assured. Clinicalpharmacyservicestobeperformedinclude:

1. Assessmentandprescriptionservices;2. Drugusesearchhistory;3. Medicationreconciliation;4. DrugInformationService(PIO);5. Counseling;6. Visite;7. TherapeuticDrugMonitoring(PTO);8. MonitoringDrugSideEffects(meso);9. EvaluationofDrugUse(EPO);10. Thedispensingofsterilepreparations;and11. MonitoringofDrugLevelsinBlood(PKOD)

Implementation of the Standards of Pharmaceutical Services at theHospitalmustbesupportedbytheavailabilityofpharmacyresources,organization oriented to patient safety, and standard operatingprocedures. To ensure the quality of Pharmaceutical Services at theHospital,wemustdoQualityControlofPharmaceuticalserviceswhichinclude:

a. monitoring;andb. evaluation.

Hospital Pharmaceutical Services are an integral part of the hospitalhealth care system oriented to patient care, the provision ofPharmaceutical Preparations, Medical Devices, and consumableMedical Materials which have certain quality and affordable for allsegmentsofsociety,includingclinicalpharmacyservices.Pharmaceutical Services is an activity that aims to identify, prevent,and resolve issues related tomedicine.Thedemandsofpatientsandthe community to improving the quality of Pharmaceutical Services,require an extension of the old paradigm which is oriented to theproduct (drug oriented) into a new paradigm that is oriented to thepatient(patient-oriented)withthephilosophyofpharmaceuticalcare.Hospital Pharmaceutical care includes two activities, ie activities inmanagingPharmaceuticalPreparations,MedicalDevices,consumable

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Medical Materials and clinical pharmacy service activities. Theseactivities must be supported by human resources, facilities, andequipment.Management of Pharmaceutical Products, Medical Devices, andconsumableMedicalmaterials are a cycle of activities, starting fromthe election, demand planning, procurement, receipt, storage,distribution, destruction andwithdrawal, control, and administrationthatarenecessaryfortheactivitiesofPharmaceuticalcare.The problemof traditionalmanagement can be overcome if the topmanagementofahospitaliscommittedtotheDeming-basedLeanSixSigmaManagementparadigm(GitlowandLevine2005).Thisparadigmcreates the cultural transformation which requires to reverseescalating hospital costs. One final stumbling block to thetransformationofahospitalfromtraditionalmanagementtoDeming-basedLeanSicSigmaishowtopayforthetransformation,whichisapartofDeming-basedLeanSixSigmaManagement.

LeanSixSigma

Lean is a continuous effort to eliminate waste and increase the valueadded of products (goods and services) in order to provide value to thecustomer(customervalue).Thepurposeistoincreasetheleancontinuouscustomervaluethroughcontinuousimprovementoftheratiobetweenthevalue added to the waste (the value to waste ratio). Lean Six Sigma forservices is a business improvement methodology that maximizesshareholder value by achieving the fastest rate of improvement incustomersatisfaction,cost,quality,processspeed,andinvestedcapital.Lean offers a number of standard solutions to common organizationalproblems. Visual management, complexity reduction, 5S (a method fororganizing the workplace: sort, straighten, scrub, standardize, sustain),cellularproduction,pullsystems,linebalancing,one-pieceflow,andsingle-minuteexchangeofdiesaresomeofthemorefamiliarsolutions(Shingo,1989;Womack&Jones,2003). Six Sigma is deployed by carrying out improvement projects. Projectselection is usually based on a translation of the company strategy intooperationalgoals(Pyzdek,2004).SixSigma’sapproachissimilartothatofgood medical practice used since the time of Hippocrates—relevantinformation is assembled and followed by careful diagnosis. After athorough diagnosis is completed, a treatment is proposed and

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implemented. Finally, checks are applied to see if the treatment iseffective.Toconductthisproblem-solvingstrategy,SixSigmadeploysfivephases—define,measure,analyze,improve,andcontrol(DMAIC)—thatarerigorouslyfollowedwheneveraproblem,largeorsmall, isapproached.Inthedefinephase,acharterisdraftedthatincludesacost-benefitanalysis.Ifthecost-benefitanalysismeetsthecompany-establishedthresholds,thecharterwillbeaccepted,andtheprojectwillcontinuethroughtheDMAICprocess(i.e.,theprojectbecomesscheduledforsolutionandassignedtoateamheadedbyaGBorBBreportingtoaChampion). In the subsequentmeasurephase,baselinedataareassembled,andthediagnosis isstartedinearnest.Theproblemistranslatedintoquantifiabletermsusingcritical-to-quality(CTQ)characteristics.Theanalysisphasecontinuesthediagnosisand involves an identification of possible causal relationships betweeninputsandtheCTQs.Afterthediagnosisiscompleted,theteamproceedstotheimprovephaseandsuggestsasolutiontotheproblem.TheGBorBBdesigns and implements process changes or adjustments to improve theperformanceoftheCTQ.Finally,inthecontrolphase,controlsystemsaredeveloped to ensure that improvements are maintained and the newimproved process can be handed over to the day-to-day operation staff.Eachof the fiveDMAICphases involvesdetailedplans thathelp to guideproject leaders through the executionof theQI project (DeKoning&DeMast,2006).Lean provides a total system approach but is short on details,organizationalstructures,andanalytictoolsfordiagnosis.SixSigma,ontheotherhand,offersfewerstandardsolutionsbutprovidesageneralanalyticframework for problem solving and an organizational infrastructure. Theidealsolutionistocombinethetwoapproaches.Typically, a Lean Six Sigma Champion will work with P&Lmanagers/sponsors to create a first draft of a project charter before theteam is officially commissioned because project ideas need to be betterdefinedbeforetheywillbereadytoundergoafinalprioritization.

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Figure1.LeanSixSigmaDMAICTools

The problem of traditional management can be overcome if the topmanagement of a hospital is committed to the Deming-based Lean SixSigma management paradigm (Gitlow and Levine, 2005). This paradigmcreatestheculturaltransformationrequiredtoreservesescalatinghospitalcosts.One final stumblingblock to the transformationof ahospital fromtraditionalmanagement toDeming-based LeanSix SigmaManagement ishowtopay for thetransformation,which isapartofDeming-basedLeanSixSigmaManagement.Hospitalsthatengangestaffintheimprovementeffortcangreatlyincreaseefficiency and patient safety. But perhaps the most satisfying resultsinvolvethesatisfactionthestaffderived.Unlesshealthcareleadersdealwithspiralinghealthcarecosts,adecreasingproportionof the citizensof industrialized societieswillbeable toaffordhigh-quality healthcare. If healthcare services are inefficient, they costmore, and fewer can benefit from the technical advances of modernmedicine. A persistence of traditional service practices will drain our

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economy.Continuousandrelentlesspursuitsof innovationsintheservicedeliveryprocessarenecessary.The industrialization of healthcare offers a viable alternative that canprovide better economy, greater efficiency, and better service.Industrializing healthcare does not mean that healthcare becomes lesspersonal and that quality standards are compromised. For example, amoderncar,objectivelyspeaking,isfarcheaperandofsignificantlyhigherquality thanahandcraftedcarmanufactured100yearsago.Prepackagedvacations typically offer better deals with higher levels of service thanindividually planned tours. Industrialization of services typically improvesqualitywhilemakingthoseservicesmuchmorecostefficient.The industrialization of healthcare servicewill require a large number ofinnovations, especially pertaining to thedeliveryof services. Thepopularperception is that innovation, like artistic expression, is the product ofgenius. However, in today’s competitive economic environment, thisprocessmust not remain amystery. Indeed, it need not be. Pianists andpaintersattendconservatoriesandartschoolstoreceiveintensivetrainingin their profession. Innovation, like artistic performance, can be learned.The combination of Six Sigma and Leanwith their tools, roadmaps, andmanagement processes is essentially a carefully managed process forsystematicallyschedulingandcarryingoutinnovationprojectsthatcanbetaught,learned,andperformedwithahighdegreeofsuccess.Lean and Six Sigma have strongly complementary strengths that areparticularly useful for systematically developing healthcare serviceinnovations.Synthesizingtheseapproachesleadstoanintegratedprogramcombining the best of both programs. Lean Six Sigma incorporates theorganizationalinfrastructureandthethoroughdiagnosisandanalysistoolsof Six Sigma with Lean analysis tools and best practice solutions forproblemsdealingwithwasteandunnecessarytimeconsumption.ThemanagementofthehospitaladoptedtheLeanSixSigmaorganizationalinfrastructure, developed organizational competencies, and instituted aprocessforselectingstrategicallyalignedprojectscombinedwithrigorousproject management. The net result was a process for institutionalizedsystematic innovation that consistently delivers the intended end results(Drucker,1985).

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ResearchMethodology

Typesanddatacollectiontechniques

Thetypeofdataweusearequantitativeandqualitativedata,whilebasedon thesource,according toSanusi, tends topointat thedirectionwherethe data originate. Based on that, the data are classified into twocategories,namely:1.Primarydata

Primarydata isdatacollecteddirectlyfromfieldsurveyusingallmethodsoforiginaldatacollection.Wecollectthedatasothatadescriptionoftheproblem/phenomenon iscompleteandaccurate.Theprimarydata inthisstudyareobtainedbymeansof:• Questionnaires, paper of question that contain the indicator for

serviceflowatpharmacyunit.• Observation,obatiningdatabyorbserving theactivityof service flow

atpharmacyunit.• interviewcontainingquestionsabout thevariables that cover service

flowusingleansixsigma.

2.Secondarydata

The secondary data are gained from a variety of references, articles,journals, scientific publications and documentations of the hospital thathastodowithserviceflowatpharmacyunit.Inthedesignofserviceflowusing leansix sigma, theuseofboth typesofdatawill complementeachother. Informationfromanywherewillbeusedtoobtaindatarelevanttotheresearch.Indesigningthisserviceflowusingleansixsigma,mostofthedatacomesfromprimarydatawhichisthenanalyzedusingleansixsigmatofindthebestwayinservingtheserviceflow.

DataAnalyzing

1.InitialDataCollection

Atthebeginningofthisresearch,wecollecteddatafromRSPMNCicendoBandung.Thedatawerecollectedintheformofresultsofsuggestionboxofhospitalservices,StandardOperationalProcedureonthePharmacyunitof the hospital, and the data from previous studies conducted in thepharmacyunit.

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2.LiteratureStudy

Thisstudy isbasedon literaturestudywhichauthorscollected.Thestudyof literature is derived from a variety of sources, namely textbooks,journals researchonhospitals and lean six sigma, service guide from theMinistryofHealth,andsupportingdatafromtheinternet.

3.PharmaceuticalUnitFlowAnalysisServicesusingLeanSixSigma

Inthisresearch,datacollectionwillbedoneinthehospitalpharmacy.Thedata were collected by the observational method, interviews, andrecording of operational data on pharmacy. After that with lean and sixsigma methods, then we will identify the problems/waste and how toeliminatewaste.

4.Improvingtheserviceflow

Fromthisresearch,wewillhavetheeffectiveandefficientserviceflowinhospitalpharmacyunit.Byapplyingthisnewflow,wehopeitcanimprovethequalityofserviceflowofphamaceuticalcare.

Reference

Dyas, S. R., Greenfield, E., Messimer, S., Thotakura, S., Gholston, S.,

Doughty, T.,... & Phillips, R. (2014). Process-Improvement CostModel for the Emergency Department.Journal of healthcaremanagement/American College of Healthcare Executives,60(6),442-457.

George, M. L., & George, M. (2003).Lean six sigma for service(p. 273).NewYork,NY:McGraw-Hill.

Gitlow, H. S., & Gitlow, A. L. (2013). Deming-based Lean Six Sigmamanagement as an answer to escalating hospital costs.TheQualityManagementJournal,20(3),6.

Koning,H.,Verver,J.P.,Heuvel,J.,Bisgaard,S.,&Does,R.J.(2006).Leansixsigmainhealthcare.JournalforHealthcareQuality,28(2),4-11.

INDONESIA, M. K. R. (2014). Peraturan Menteri Kesehatan RepublikIndonesia Nomor 58 Tahun 2014 Tentang Standar PelayananKefarmasianRumahSakit.

Vos, L., Groothuis, S., & van Merode, G. G. (2007). Evaluating hospitaldesign fromanoperationsmanagementperspective.Health caremanagementscience,10(4),357-364.

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Wills,M.J.(2014).Decisionsthroughdata:analyticsinhealthcare.JournalofHealthcareManagement,59(4),254.

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THEINFLUENCEOFSERVICEQUALITYANDCUSTOMERS’SATISFACTION

TOWARDSRE-PURCHASEINTENTION

(SURVEYSONSNEAKLINSHOESLAUNDRYINBANDUNG)

DwiRektaRamadhan,StudentID.120820150520RefaldyFauzi,StudentID.120820150548

MasterOfManagementProgram,FacultyOfEconomics,AndBusinessUniversitasPadjadjaran(MMFEBUnpad)

ResearchBackground

Nowadays, the level of competition happens on small and medium sizesectors / (SMEs) in Indonesia is getting higher. The phenomenon ischaracterizedbymanynewventures appear in society.Oneof them is aspecial laundry services to gain Indonesian peoples’ awareness of takingcare shoes properly since the beginning of 2015. This phenomenon isinfluenced by the increase of diverse needs by now and in the modernfuture.Thebusinessoflaundryservicesratedquitepromising.Ithappenedbecausethereishighcompetitionamongshoeslaundryserviceproviders.It creates big opportunities for them to continue expanding this kind ofcompanyinsociety.For example, Sneaklin is one of the prior shoes laundry services inIndonesia,which comes from the city of Bandung since in themiddle of2013.Nowbydevelopingitsbusiness,Sneaklinhas7branchesinBandung,threebranches in the islandofBali,onebranch in thecityofBalikpapan,andonebranchinthecityofBogor.Theopeningofoutletsoccursbecausethe market demands it from every town in Indonesia. It proves thatSneaklinstillshowsitsexistenceuntiltoday.Unknowinghow to clean shoesproperly, how to take careof shoeswiththe right procedures in general become the reason they need the shoeslaundry services as providedby Sneaklin. Aswe know that the shoe alsohas a fairly high prestige value for each user (www.teropongbisnis.com,"peoplewanttobehealthy,shoecleaningservicesstreaking",2015).Alongwith the development of this laundry services, of course, brings a lot ofnewplayers of this businesswhich expect achieving success as has beendonebypreviouspioneer.Thetablebelowistable1.1containsthelistofservicesinthecityofBandungshoeslaundryperiod2013to2015.

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Table1.1

ListofShoesLaundriesinBandung2012–2015

Year No NameofLaundry

20131 Sneaklin2 CuciSepatumu3 ss45shoetreatment

2014

4 ShoesandCare5 SneakersBright6 SpokatClean7 SneakersMundare8 Shoebible

2015

9 Proclean10 seseuhsapatu11 Starwash12 DirtCleaning13 Washoes

source:pricelist.co.id

By looking at this table, it is possible that this year the shoes laundryservice providers will continue to grow. However, it will make thecompetitionevenhigher.Thosewhowillsurvivearetheywhoalwayspayattention to both quality of service and those matters related tocustomers’satisfaction.AccordingtoTjiptonoandChandra(2011),Qualityof Service is a dynamic condition related to products, services, humanresources, processes, and environments that meet or exceed theexpectations of the customer wants. And various quality of serviceconsistingofreliability,responsiveness,assurance,empathyandintangible(tangibles).Thefifthcasewasveryimportanttobeappliedinbusinessactivityofshoeslaundry services, if companies want to gain competitive advantage.Because if the quality of service is good, then it will directly affect thecustomers’ purchase intention. In other words, it can be concluded thatthey were satisfied with the service which prime companies provide tothem causing consciously satisfaction and influence the behavior of re-purchasetheproductsinthesameplace.

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AccordingtoPhilipKotler(2010),"Consumersatisfactionisfeelinghappyor disappointed someone who comes from a comparison between hisimpressionofaproductperformanceorresultsandexpectations".Inorderto improve the quality of service and satisfaction, Sneaklin continues toimprovetheperformanceoftechnicalandnon-technicalmanner.Technicalfactors are addressed Sneaklin ranging from leaching systems (washing),drying (dryer), and packaging that can be perceived that customer valueadded. Non-technical factor is addressed starting from the procedure oftransaction to provide excellent service to customers. It proved to affectthesaleofSneaklin, itcanbeseenfromthesalesdataasshowninTable1.2below.

Table1.2

SalesdataofSneaklinFebruary–June2015

MONTH NUMBEROFPAIRS NUMBEROFCUSTOMERSFebruary 274pairs 225March 280pairs 236April 328pairs 273May 346pairs 318June 379pairs 342

Source:SalesdataofSneaklinFebruary–June2015It can be seen from the data above that the total sales of Sneaklincontinuedtoincrease.Italsoindicatedthatservicequalityandcustomers’satisfaction were increased. However, inversely the old costumer datacontinuestodecreasecomparedtothenewconsumerdataalthoughmanyeffortshavebeendonetokeeptheoldcustomerstakingcaretheirshoesinSneaklin,itisshowninthetableasfollows:

Table1.3NumberofConsumersOldandNewSneaklin

February–June2015

MONTH THENUMBEROFCOSTUMER

OLDCOSTUMER(%)

NEWCUSTOMER(%) (%)

February 225 55 45 100March 236 44 56 100April 273 40 60 100May 318 37 63 100June 342 31 69 100

Source:SalesSneaklinFebruary–June2015

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Basedonthecustomerdataabove,itshowsthatadecreaseofcustomerisbiggerintheperiodofFebruarytoJune2015.Althoughsalesdatashoweda significant improvement, it is not followed by a number of oldercustomers that continue todecreasewhich isnot inaccordancewith thetarget setby thecompany.Companyestimated that theolder customersare more than 50 %. It indicated the low quality of service provided bySneaklin to the customers. As the result, it affects the satisfaction andintentionforcustomerstocomebackanduseitsservice.Becauseoftheseproblems, the writers are interested in conducting research on "TheInfluence of Service Quality and Customers’ satisfaction towards Re-purchaseintention(surveysonSneaklinshoeslaundryinBandung)".

LiteratureReview

ServiceQualityThecompany'ssuccessinprovidingaservicequalitycanbedeterminedbythe service quality approach which has been developed by in Lupiyoadi(2006)ishowfarthedifferencebetweenexpectationsandtherealityofthe customer for the services they receive. Quality of Service (ServiceQuality ) canbedeterminedbycomparing theperceptionsofcustomersfortheservicereally-reallytheyreceivetheactualservicetheyexpect.According to Lewis& Booms in Tjiptono and Chandra (2011 )Quality ofservice isameasureofhowgoodthelevelofserviceprovidedisabletobe realizedas customerexpectations,thesameas ithasbeensubmittedbyTjiptono (2011 ) the quality of the service itself is determinedby theabilityofthecompanytomeetcustomerneedsanddesiresofcustomersaccordingthecustomerexpectations.Basedonthosestatements,itcanbeconcludedthatthequalityofserviceis the ability of a company to meet the expectations of customers byproviding services to the customers at the timeprogresses and after thetransactiontookplace.DimensionsofServiceQualityAccording toParasuraman inTriRatnasariandMastuti (2011 ), therearefivedimensionsofservicequality,suchas:1. Tangiblesistheabilityofacompanytoshowitspresenceonexternal

parties.

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2. Reliability is theabilityof companies toprovideservicesaspromisedareaccurateandreliable.

3. Responsiveness is a willingness to assist and provide services tocustomersquicklyandaccurately,withclearinformationdelivery.

4. Assurance is the capabilities of the company's employees to gainconfidenceofcustomerstothecompany.

5. Empathy is give theattention,honesty,and individualorpersonal tocustomersbystrivingtounderstandthecustomers’wishes.

CustomerSatisfactionCustomer satisfaction is very important for service providers, if thecustomersaresatisfied,theywillautomaticallyinformtheirsatisfactiontotheotherpeople,whetherit'sfamily,friends,relatives,orothers,andthecompanyreputationwillriseandbeknowntothepublic.ThesenseofsatisfactionaccordingtoKotler(2007)areasfollows:"Satisfaction is feeling happy or disappointed someone who emergedafter comparing the peception on his impression of the performance orthe result of a product and its expectations”. Meanwhile, AccordingTjiptono (2011 ) states that :"Customer satisfaction is the customerresponse to the evaluation of nonconformities / disconfirmation of theperceivednormequivalentpriorexpectationsorotherperformanceandactual performance product that is felt after use”. Conceptually,customers’satisfactioncanbedescribedasshowninthepicturebelow.

Customers’satisfactionconcept

Source:Tjiptono,Fandy(2005)ServiceManagement

Company Objective Needs and wants of customer

Product

Value of product Customer expectations

The Products

the level of customer satisfaction

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TheIncidenceFactorsofConsumerDissatisfactionThe essence of dissatisfaction and customer satisfaction on theproducts/servicesareusedtoinfluencethesubsequentbehaviorpatterns.Consumerdissatisfaction canarisebecauseof theprocessof informationobtainedduringanevaluationofabrandtoconsumersafterthepurchaseprocess. Consumers who are not satisfied can demand for returning theproductorsueagainstthecompany.Obviouslymanyreasonscan leadtothe emergence of consumer dissatisfaction. According to Buchary Alma(2010),theemergenceofnotsatisfyingonsomethingthatis:1. Realityandexpectationsarenotsuitable2. Serviceduringtheprocessofenjoyingtheservicesisunsatisfactory.3. Thebehaviorofpersonnelisunsatisfactory.4. Theatmosphereandthephysicalconditionoftheenvironmentdonot

support.5. The cost is too high, because the distance is too far, much time is

wasted,pricedoesnotmatch.6. Promotional/advertisingtoograndiose,donotcorrespondtoreality.Re-purchaseintentionAccording to Kotler and Keller (2007) consumers to buy is a consumerbehavior,whereconsumershaveadesireinbuyingorchoosingaproduct,based on experience in selecting, using and consuming or even want aproduct.Good servicequalitywould create customers’ satisfaction that drives thedesire of consumers to make repeat purchases.According to Ferdinand(2006) re-re-purchase intention can be identified through indicators asfollows:1. Interestpreferential

Itisnamelytheinterestwhichdescribesthebehaviorofsomeonewhohas always had a major preference to products that have beenconsumed. These preferences can only be replaced if anythinghappenstotheproductpreferences.

2. IntereststransactionalAperson'stendencytoalwaysbuytheproductshavebeenconsumed.

3. InterestexplorativeThe interest in describing the behavior of someone who is alwayslookingforinformationontheproductofinterestandfindinformationtosupportthepositivequalitiesoftheproductsthatinterested

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4. InterestsreferentialA person's tendency to refer a product that has been purchased, sothat was also purchased by someone else, with reference to theexperienceofconsumption.

ResearchMethods

ABriefHistoryoftheCompany

Sneaklin shoes laundry services established in Bandung since 2013. As ashoeslaundryservicescompany,Sneaklin,isknowninIndonesiabecauseithasseveralbranchesinseveralcitiesinIndonesia.Thestudyisconductedrelatedtothewriterspaperentitled”TheInfluenceofServiceQualityandCustomers’satisfactiontowardsRe-purchaseintention(surveyonSneaklinshoeslaundryinBandung)”.Then,inthisresearch,theobjectwhichwillbeused by the writers namely shoes laundry services in the city as thepopulation,andcustomersofSneaklinshoeslaundryasthesample.VariablesandData

Based on the research entitled "The Influence of Service Quality andCustomers’ satisfaction towards Re-purchase intention (surveys onSneaklinshoes laundry inBandung)",thentherearethreevariablesusedinthisstudy,namely:

Tabel1VariableOperationalResearch

Variables Indicator Measurement

ServiceQuality(X1)

Tangibles

- Storelocation- Cleanlinessandcomfortofthe

roominthedeal- Parkingfacilities

Reliability

- Easeofpaymentprocessing- Instrumentofadequatesupport- Duration/timeofexecution

Responsiveness

- Responsivetocomplaints- Responsibilitytocustomers’

demand- Easeincallingourcustomer

service/salesclerkAssurance

- Theresultsofwhicharegivenaccordingtoexpectations

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Variables Indicator Measurement

- Provideclearguarantees- Fulfillcustomers’needs

Emphaty

- Provideconveniencetocustomers- Communicationgoeswell- Givemoreattention

Satisfaction(variabelX2)

Tangibles

- Satisfiedwiththestorelocation- Satisfiedwiththecleanlinessand

comfortoftheroominthedeal- Satisfiedwithadequateparking

facilitiesReliability

- Satisfiedwiththeeaseofpaymentprocessing

- Satisfiedwithsupportingtoolsthatareused

- Satisfiedwiththeduration/timeofexecution

Responsiveness

- Satisfiedwiththespeedofresponsetocomplaints

- Satisfiedwiththespeedofrespondingtoconsumerdemand

- Satisfiedwiththeeaseofcallingourcustomerservice/salesclerk

Assurance/Jaminan

- Satisfiedwiththeresultsasexpected

- Satisfiedwiththeassurancegivenbytheproviderofservices

- Satisfiedwiththeabilityofserviceproviderstomeettheneedsofconsumers

Emphaty/Empati

- Satisfiedwiththecomfortprovidedproviderstoconsumers

- Satisfiedwiththecommunicationthatgoeswellwithserviceproviders

- Satisfiedwiththeattentiongivenbyproviders

Re-purchaseintention

PreferentialIntention

- Theintentionofconsumerstoprefertousetheservicesin

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Variables Indicator Measurement

(variabelY) Sneaklinthanotherservices- Consumerintentionstowear

TransactionalIntention

- ConsumerintentionstobuytheservicesatSneaklin

ExplorativeIntention

- ConsumerintentionstoseekmoreinformationaboutSneaklin

ReferentialIntention

- RecommendSneaklintoothercommunities

Thedatawillbeusedinthisresearchistheprimarydatacollectedfromthequestionnaire.The questionnaire itself will be given to the customers ofSneaklin laundry related to shoes. Thewriterswill use a Likert scale as ameasurementscaletoevaluatetheanswersofallrespondents.Malhorta&Birks(2006)saysthattheLikertscalecanbeusedtomeasureapersonorgroupmovements,opinions,andperceptionsofthephenomenonandcanbemeasuredquantitatively.ThewriterswilluseaLikertscalewith5pointratingasdetailedinTable2below:

Table2

Score/weightvaluebasedontheLikertScale

Question Answer WeigtValue

StronglyAgree SS 5Agree S 4Neutral RR 3Disagree TS 2StronglyDisagree STS 1

Source:Sugiyono(2012)Dataanalysis

After the data has beenobtained from the questionnaire, thewriterwilltranslate the data to determine the relationship of knowledgemanagement into a competitive advantage and organizationalperformance.First,thewriterswillcalculatetherespondents'answersintoscores mean (average) of all of the questions in the questionnaire.Interpretation of the mean will follow the interval specified in Table 3.Then, each indicator variables (quality of service, satisfaction, and re-purchaseintention)willbeinterpretedasmeanandcategorieswillfollow

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Table 3. Once all the criteria are interpreted, the writers will know therespondents’responsesaboutvariables.

Table3

Respondents’AnswerInterpretationfromMeanCalculated

Interval Category

4,2<Mean=<5,0 StronglyAgree3,4<Mean=<4,2 Agree2,6<Mean=<3,4 Neutral1,8<Mean=<2,6 Disagree1,0<Mean=<1,8 StronglyDisagree

Source:Sugiyono(2012)Statistical data are then verified by using SPSS. The writers will useregression techniques to determine whether or not the service qualityaffectsthere-purchaseintentionofcustomersandconsumers’satisfactioninfluence customers’ re-purchase intention. To find out more about thecorrelation,symbolizedbythe"r".Thewriterswillusecorrelationanalysis,whichismeasuredfrom-1to1.ThestrengthofthecorrelationisshowninTable 4. Then, another calculation is the coefficient of determination toknow about how big the correlation of knowledge management into acompetitive advantage and organizational performanc. Then, to test thehypothesis,thewriterswillusestudenttestt.Correlationanalysis

Correlationanalysisareconductedtoexaminetherelationshipwhether itis strongorweak, the study variables ( X to Y ).With the formulation asfollows:

! = !( !") − ( !)( !)[!( !!) − ( !)!][!( !!) − ( !)!]

Information:Thecorrelationcoefficientr=n=numberofyearscalculatedX=independentvariable(independent)Y=thedependentvariable(dependent)

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Toprovideinterpretationofthecorrelationcoefficient,thewritersusethefollowingguidelines:

Table4InterpretationofCorrelationCoefficient

CoefficientInterval DegreeofRelationship

0,00–0,199 VeryLow0,20–0,399 Low0,40–0,599 Moderate0,60–0,799 Strong0,80–1,000 VeryStrong

Source:Sugiyono(2012)

Thecorrelationcoefficienthasavalueof-1≤r≤+1where:1. Ifr=+1,thecorrelationbetweenthetwovariables issaidtobevery

stronganddirect,meaningthatifXincreasedby1thenYwillalsoriseby1orviceversa.

2. When r = 0, then the relationship between the two variables is verywideornorelationshipatall.

3. Ifr=-1,thecorrelationbetweenthetwovariablesisverystrongandintheoppositedirection,meaningthatifXincreasedby1thenYwilldecreaseby1orviceversa.

CoefficientofDetermination

The coefficient of determination aims to find out how much ability ofindependentvariablesexplainthedependentvariable.RSquarevaluethatdescribestheabilityofthemodelexplainsthedependentvariablesshouldbesignificantFtest<0.05.Betacoefficientshouldbeinsignificant<0.05.Ifitisfulfilled,theresearchhypothesiscannotberejected.1.RegressionAnalysisAccording to Lind (cited in Sunjoyo, 2013), "Regression analysis is atechniqueusedtodeveloparegressionequationandgiveanestimate".Ingeneral,theregressionanalysisisbasicallythestudyofthedependenceofthe dependent variable ( bound) with less of one or more independentvariables(free),forthepurposeofforecasting(Ghozali,inSantoso,2010).Thegeneralformofmultiplelinearregressionareasfollows: Y=a+bxWhere:Y=dependentvariable(re-purchaseintentionofthecustomers)a=Constant

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b=RegressionCoefficientsX=independentvariablea.MultipleRegressionAnalysisIn this study,multiple linear regressionwas used to test the relationshipbetweenservicequalityandsatisfactionand the re-purchase intentionofthecustomer.Inmultipleregressions,thereareseveralthingstoconsider,suchas:HypothesistestingH0:RYX=0.AcceptH0RejectHa(noeffect)Ha:RYX≠0.ThankHa,RejectH0(influential)ii.Partialtesting,conductedtoseetheeffectofvariableXonebyone.Partialhypothesisasfollows:Simultaneous testing was conducted to see the effect of variable Xsimultaneously.Simultaneoushypothesisasfollows:H0:RYX1=RYX2=0

Service Quality and Satisfaction no simultaneouseffecttoConsumers’Re-purchaseintentions

Ha:RYX1=RYX2≠0

Service Quality and Satisfaction influencesimultaneously to Consumers’ Re-purchaseintentions

Y=a+bx1+bx2+bx3Where:Y=dependentvariablea=Constantb=RegressionCoefficientsX=independentvariable

ResearchPurpose,LimitationandOriginality/Value

Thepurposeofthisresearchistostudytheinfluenceofservicequalityandcustomers’satisfactiontowardsre-purchaseintention(surveysonSneaklinshoeslaundryinBandung).Thisresearchhasa limitationintermsofareacovered, which is only in Sneaklin laundry shoes in Bandung. Furtherresearch is needed to get the information about it in larger scale, theinfluence of service quality and customers’ satisfaction towards re-purchaseintentionatalloflaundryshoessuchasinBandungorIndonesia.This researchwill provide information related to the influence of servicequality and customers’ satisfaction towards re-purchase intention.

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Furthermore,thecompaniesthathaven’timplementedservicequalitywillconsider using it to improve their customers’ satisfaction and their re-purchaseintention.

References

Alma, Buchari. 2010. Manajemen Pemasaran dan Pemasaran Jasa.

Bandung:CV.Alfabeta.Arikunto, S. 2010. Prosedur Penelitian Suatu Pendekatan Praktis. Jakarta:

PT.RinekaCipta.Cesimariani, Nani. 2012. Pengaruh Kualitas Pelayanan Jasa terhadap

KepuasanPelangganpadaCV.Hapsari.Palembang.Engel,J.F.,Blackwell,R.D.,Miniard,P.W.2001ConsumerBehavior,6thed.

Orlando,Florida:TheDrydenPress.Faradiba, Sri Rahayu, Tri Astuti Nurseptiany. 2013. Analisis Pengaruh

Kualitas Produk, Harga, Lokasi dan Kualitas Pelayanan terhadapNiatBeliUlangKonsumen.

Ghozali, Imam. 2011. AplikasiMultivariate Dengan Program SPSS (editankelima).Semarang:BPUniversitasDiponegoro.

Hawkins,D.I.,Mothersbaugh,D.L.,&Best,R.J.2007.ConsumerBehavior:BuildingMarketingStrategy.NewYork:McGrewHillCompanyInc.

Kadek Ngurah Astana, Made Nuridja, Luh Indrayani. 2013. PengaruhKualitasPelayanandanKepuasanterhadapLoyalitasKonsumen.

Kotler,Philip&Keller,K.L.,2007.ManajemenPemasaran,Edisi12.Jilid2.Jakarta:PenerbitPTIndeks.

Kotlerp&Keller, K. L.,2012.MarketingManagement,14th Edition.NewJersey:PearsonPrenticeHall.

LovelockdanWright.2007.ManajemenPemasaranJasa,EdisiKeduaBelasJilid 1. Alih Bahasa Agus Widyantoro. Jakarta: PT KelompokGramedia.

Lupiyoadi, Hamdani.2006. Manajemen Pemasaran Jasa, Edisi Kedua.Jakarta:SalembaEmpat.

Marantika, Arika. 2011. Pengaruh Kualitas Pelayanan dan KepuasanTerhadapMinatBeliUlang

Nazir,Mohammad.2011.Metodepenelitian.Bogor:GhaliaIndonesia.Riduwan.2011.Dasar-dasarStatistika.Bandung:Alfabeta.Ririn,TriRatnasaridanMastuti,H.Aksa.2011.ManajemenPemasaranJasa.

Bogor:GhaliaIndinesia.

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Schiffman,L.GdanKanuk,LesleyL.2007cunsomerbehavior.NewJersey:PerasonPrenticeHall.

Sekaran,Uma.2006.MetodologiPenelitianUntukBisnis.Jakarta:SalembaEmpat.

Silalahi,Ulber.2010MetodePenelitianSosial.Jakarta:RafikaAditama.Siregar,Sofjan.2010.MetodePenelitianKuantitatif.Jakarta:Kencana.Solomon,M.R.,Marshall, G.W., dan Stuart, E.W. 2008.Marketing Real

People,RealChoice.5thed.NewJersey:PearsonPrenticeHall.Sugiyono. 2009. Metode Penelitian Bisnis Pendekatan Kuantitatif,

Kualitatif,danR&D.Bandung:Alfabeta.Sukardi. 2008. Metodologi Penelitian Pendidikan, Kompetensi, Dan

Praktiknya.Jakarta:PT.BumiAksara.Sunjoyo. 2013.Aplikasi SPSS untuk SMARTRiset Program IBMSPSS21,0.

Bandung:Alfabeta.Tjiptono,Fandy.2004,PemasaranJasa.Malang:BayuMedia.Tjiptono, Fandy. 2008, Trategi Pemasaran, Edisi Ketiga. Yogyakarta :

PenerbitAndi.Tjiptono,Fandy dan GregoriusChandra.2011. Service, Quality &

SatisfactionEdisi3.Jakarta:Andi.Yamit,Zulian.2005.ManajemenPemasaranJasa.Jakarta:SalembaEmpat.

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TESTINGWEAKFORMOFEFFICIENTMARKETHYPOTHESIS:ASTUDYIN

INDONESIASTOCKEXCHANGE

FaizaIstiani–120820150505ClaudiaHesaputri–120820150525

MasterofManagementProgramFacultyofEconomicsandBusinessUniversitasPadjadjaran

RESEARCHBACKGROUND

Indonesia’s capitalmarket’sperformance isoneof thebest in theworld,especially in the 2008-2009 crisis (Hariyani and Purnomo, 2010). Butaccording toDirector of BEIDevelopment,HoseaNickyHogan, there areonly37%activeinvestor inIndonesiaperNovember2015.Therefore,OJKwith BEI, KPEI, and KSEI held a national campaign program namely "YukNabung Saham". The campaign was intended to increase capital marketeducationdirectly to society and to enhance theutility of capitalmarketproducts (Apriyani,2015).This isduetothefact thatpeople in Indonesiamight feel afraid and hesitant to participate in Indonesia capitalmarket.IndonesiansarenotsurewhichstrategytousesincetheydonotknowtheclassificationofIndonesiaStockExchange.The efficient market hypothesis suggests that stock prices reflect allavailable information about the valueof a firmbut unfortunately peoplecannot earn excess profits by using that information. Efficient markethypothesisisaboutwhypricechangesandhowpricecanchange,thisgivevery valuable implication for investors and financial managers. Manyinvestorswillbeableto identifyundervaluesecuritiesandwillbeabletoincreaseitsvalueinthefuture.Thoseinvestorsbelievetheycanselectthatkind of securities and gain a lot of profit from the market. But EMHsuggests that it is very difficult to predict price movement and to gainprofit from that. But, investor can set a strategy if they know what themarket classified in. For example, if the stock market is highly efficient,investors should follow a passive investment strategy,whichmeans theywill not attempt any strategy to outperform the market. Instead, theyshould choose a portfolio designed towards the time horizon and riskprofile of the investor, asset diversification, asset allocation, andminimizationofinvestmentcostandtaxes(Clarke,Jandik,andMandelker,2001).

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StudieshavebeendonetotestthemarketinIndonesia,butthosestudiesvariesinconclusion.KimandShamsuddinconcludedthatIndonesiaprovedtobeweakforminefficient(KimandShamsuddin,2008).ChyeandKendallfoundtheexistenceofweakandsemistrongforminIndonesia(ChyeandKendall, 1992). Because of that, this study will observe Indonesia StockExchange in the present days and classify Indonesia Stock ExchangeaccordingtoEfficientMarketHypothesistheory.

LITERATUREREVIEW

Efficient market hypothesis definesefficient markets according to therational expectations theory aimed to analyze the financial markets(Mishkin,2013). Thepioneer studyofefficientmarkethypothesiswasbyM.C.Jensenin1968titled“Theperformanceofmutualfundsintheperiod1945-64” published in Journal of Finance 23. Two important issueswerediscussed in this journal, the first one being the success of the portfoliomanagers in forecasting the future security prices. The other one waswhether theportfoliomanagerscouldminimize risksbydiverse itamongthe securities. The result was the performance of investment funds washigher than the average price of the market. But they could notoutperformthemarket inthesecondtermeventhoughtheydidgreat inthe first term.Other findingswas even though the investment counselorand investment fundshadagoodperformance, itdidnotguarantee thatthisgoodperformancecouldbemaintainedinthefuture.Thismeansthatif one can outperform the market, maybe that is because he is in luck(Altin,2015).The efficient market hypothesis suggests that stock prices reflect allavailableinformationaboutthevalueofthefirmbutunfortunatelypeoplecannot earn excess profits by using that information. Efficient markethypothesis is aboutwhy price changes and howprice can change,whichhas a very valuable implication for investors and for financial managers.Many investorswill be able to identify undervalue securities andwill beable to increase its value in the future. Those investors believe they canselectthatkindofsecuritiesandgaina lotofprofit fromthemarket.ButEMHsuggeststhatitisverydifficulttopredictpricemovementandtogainprofitfromthat.Instead,investorcansetastrategyiftheyknowwhatthemarket classified in. For example, if the stock market is highly efficient,investors should follow a passive investment strategy,whichmeans they

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will not attempt any strategy to outperform the market. Instead, theyshould choose a portfolio that is designed towards the timehorizon andrisk profile of the investor, asset diversification, asset allocation, andminimizationofinvestmentcostandtaxes(Clarke,Jandik,andMandelker,2001).EfficientMarket Hypothesis is a theory describing a perfect market thatstates:1. Securitiesare fairlypriced,andtheexpectedreturn isequalwiththe

requiredreturn.2. Securitypricesfullyreflectallinformationavailableofthefirmandits

securitiesatanytimeandhowthepricesreacttonewinformation.3. Investor’s time is not wasted to find mispriced securities because

stocksarefairlyandfullypriced(GitmanandZutter,2012)Assumptionsofefficientmarketare:1. Theparticipants,whicharelargeinnumberandareprofitmaximizing,

monitoreachothervaluesecurities.2. Newinformationaboutsecuritiescomesinrandomorder.3. The investors try to adjust price to new information as soon as

possible(TomarandGupta,2014).TherearethreeformofEfficientMarketHypothesis,theyare:1. Weakform,theinformationcontainedisonlypastpricehistories.2. Semistrongform,theinformationcontainedarethepubliclyavailable

information.3. Strong form, if there are groups that have access to insider

information(Fama,1970).Run test is a test for randomness in investigating serial dependence insharepricemovementsandcompares theobservednumberof runswiththeexpectednumberof runs from randomprocess. The totalnumberofrunsactsasameasurementofrandomness,theindicationofdependencybetween observations is too many or too few runs (Poshakwale, 1996).Autocorrelation test is used to see the relationship between time seriesanditsvalueatvariouslags(TomarandGupta,2014).Regression analysis is a simple mode to investigate the functionalrelationship among several variables. The relationship among thesevariables is embodied in amathematicalmodel. In the regressionmodel,

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thevariablesaredistinguishedintotwoparts,thedependentvariableandindependentvariable(Nawari,2010).

RESEARCHMETHODS

Method used in this study is quantitativemethod. Quantitative researchdesignincludessubjectselection,datacollectiontechniques,proceduresindoingtheresearch.Takentogether,thesethreecomponentsunderliesthismethodofstudy(HamdiandBahrudin.2014).ResearchScope

ThisstudyisconductedatIndonesiaStockExchange.ThedataareobtainedfromIndonesiaStockExchangepublication.Datausedinthisstudyarethedaily closing price of IHSG. The four years starting from January 1st2012untilDecember31st2015timeistakenastheobservationperiod.SamplingandDataCollection

The sampleused isdaily closingpriceof IHSG in four years starting fromJanuary1st2012untilDecember31st2015.Datacollectionmethodforthisresearch is from secondary data. Secondary data is the structure ofhistoricaldataaboutthevariablesthathavebeencollectedandcompiledpreviously by others (Hermawan, 2005). The secondary data is fromIndonesiaStockExchangepublication.

DataAnalysis

Dailymarket return is taken as individual variable andwill be calculatedwiththeequationbelow:

!"# = !"(!"#!"# − 1)Index:rIt=indexreturnatperiodtPit=indexdailyclosingpriceatperiodtLn=naturallogDescriptionofVariablesVariables Proxy DescriptionReturnofIHSGIndexatperiodt rIHSGt NaturallogofIHSGreturnattReturn of IHSG Index at periodt-n

rIHSGt-n Natural log of IHSG return att-n

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The result of daily return index is used to develop descriptive statisticsanalysis, which in turn is used to determine the central tendencydistribution of index return. After that we will conduct run test,autocorrelationtestandregressiontesttotestthehypothesis.To examine randomness behavior between index return,Wald-WolfowitzRun Test will be conducted. Run test is a test for randomness ininvestigating serial dependence in share pricemovements and comparesthe observed number of runs with the expected number of runs fromrandom process. The total number of runs acts as a measurement ofrandomness, the indication of dependency between observations is toomanyortoofewruns(Poshakwale,1996)

H0=seriesofeachindexreturnarerandomH1=seriesofeachindexreturnarenotrandom

Thenexttestidautocorrelationtest.Autocorrelationtestisusedtoseetherelationshipbetweentimeseriesand itsvalueatvarious lags (TomarandGupta, 2014). Weak form of efficient market hypothesis suggests thatsignificant nonzero autocorrelation should not be exhibited. Because ofthat,thisstudywilluseautocorrelationanalysisusingACF.ComparisonbetweenTstatisticandTtableateverylagisdonetodiscoverthe significant autocorrelation value between two standard error limits.ZeroautocorrelationhypothesiswillberejectedifthevalueofTstatisticisnot within the T table limit. LBQ statistics will also be used to examineautocorrelation of a set of data. If the value ofQ stat is higher than thevaluefromchisquaretable,thenullhypothesiswillberejected.

H0=seriesofeachindexreturnhavezeroautocorrelationH1=seriesofeachindexreturnhavenonzeroautocorrelation

From theautocorrelation test resultwecanmake regressionequation toshow the relationship between variables. The dependent variable iscurrent index return (rIt) and the independent variable is significantcorrelated lagged-returns (rIt-n). F test andT testwill beused to convinceearlierresult.Theregressionequationis

!! = !! + !!!!!"!! + !!! = !! + !!!!"!! + !!!!"!! +⋯ +!!!!"!!

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RESEARCHPURPOSE,LIMITATIONANDORIGINALITY

Thispaperis limitedintermsofresearchcoveragewithonlyfromJakartaComposite Index from January1st 2012untilDecember31st2015. Furtherresearchwithadifferentscopeabout IndonesiaStockExchangemightbeneededtoconfirmtheresultofthispaper.Thispaperiswrittentohelpallpeople thatmight be interested in Indonesia Stock Exchange, specificallyIHSG tomakeadecisionbasedon the formof Indonesia Stock Exchangeaccording to Efficient Market Hypothesis and as a study material forstudents. The originality of this paper is about testing theweak form ofefficientmarkethypothesisinIndonesiaStockExchange.

REFERENCES

Altin, Hakan. 2015. Efficient market hypothesis abnormal return and

election process. European Scientific Journal December 2015Editionvol.11No.34:169-178.

Apriyani. 2015. Jumlah Investor Pasar Modal Yang Aktif Hanya 37%.Available online at http://infobanknews.com/jumlah-investor-pasar-modal-yang-aktif-hanya-37/

Chye Leo Kee and Kendall Jon D. 1992. An empirical analysis of stockindices in three southeast asian countries. Available online athttp://citeseerx.ist.psu.edu/viewdoc/summary?doi=10.1.1.42.9938

Clarke, Jonathan; Jandik,Tomas;Mandelker,Gershon.2001.TheEfficientMarket Hypothesis. In: Robert C. ARFFA, ed. Expert FinancialPlanning:InvestmentStrategiesfromIndustryLeaders.NewYork:Wiley,Chapter9,pp.126--141.Availableonlineathttp://m.e-m-h.org/ClJM.pdf

Fama, Eugene F. 1970. Efficient capital markets: a review of theory andempiricalwork.JournalofFinanceVolume25Issue2:383-417.

Gitman,LawrenceJ.;Zutter,ChadJ.2012.PrinciplesofManagerialFinance13thEdition.Boston.PearsonEducation,Inc.

Hamdi, Asep Saepul dan Bahrudin, E.2014.Metode Penelitian KuantitatifAplikasidalamPenelitian.Yogyakarta.DeepublishPublisher.

Hariyani, Iswi; Purnomo, R. Serfianto Dibyo. 2010. Buku Pintar HukumBisnis Pasar Modal Strategi Tepat Investasi Saham, Obligasi,Waran, Right, Opsi, Reksadana, & Pasar Modal Syariah. Jakarta.TransmediaPustaka.

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Hermawan, Asep. 2005. Penelitian Bisnis Paradigma Kuantitatif. Jakarta.PenerbitPTGrasindo.

Kim,J.H.,Shamsuddin,A.2008.Areasianstockmarketsefficient?Evidencefrom new multiple variance ratio tests. Journal of EmpiricalFinance,15:518-532.

Mishkin,FredericS.2013.TheEconomicsofMoney,BankingandFinancialMarketsTenthEdition.NewJersey.PearsonEducation

Nawari.2010.AnalisisRegresidenganMSExcel2007danSPSS17.Jakarta.PTElexMediaKomputindo.

Poshakwale,Sunil.1996.Evidenceonweak formefficiencyanddayof theweek effect in the indian stockmarket. Finance India Volume XNumber3:605-616.

Tomar, Deepika Singh; Gupta, Neeraj. Testing weak form of efficientmarket hypothesis : a study on indian stockmarket. PezzottaiteJournalsVolume3,Number2;1055-1062.

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ANALYSISSTUDYONTHEIMPACTOFPRODUCTATTRIBUTESANDAFTER

SALESSERVICETOWARDBUYINGDECISION

(CASESTUDYINPT.DAYAADICIPTAMOTORA–MAINDISTRIBUTOROF

HONDAMOTORCYCLEINWESTJAVA)

MuhammadIhsan,StudentID.120820150527FebriyanPratamaDefaz,StudentID.120820150533

MasterOfManagementProgram,FacultyOfEconomics&BusinessUniversitasPadjadjaran(MMFEBUnpad)

ResearchBackground

Competition in the transportation business, especially two-wheelersbusiness isnow increasinglyprevalent soasencourage themotorvehiclemanufacturers tocreateproductsor toenhance theirproduct innovationtomeet theneeds anddesiresof the consumers. Consumers themselvesareincreasinglyspoiledbyalotsofchoicesoftwo-wheeledvehiclesinthemarket these days, which actually comprised of three major groups ofmotorcycle segment such as cub, scooter and sport that has variousvariantsineachcategory.Ineveryneed,consumerswillpayattentiontoobjectsthatareinherentina product because each product has different characteristics from eachother. Ingeneral,aproduct isanythingthatcanbeofferedtothemarketthatcanfulfill specificdesiresorneeds.Theproductscanbemarketed inthe form of goods, services, experiences, events, people, places,properties, organizations, information, and ideas. Typically, customers inthe purchase of a product want to see in advance the attributes of theproductsoffered.Productattributesareelementsofproductsconsideredbyconsumersandberelieduponinmakingpurchasingdecisions.Productattributes are part of the product strategy that can be controlled by thecompany as a stimulation observed and evaluated by consumers in thedecision-makingprocess.Throughproductattributes,it isexpectedthatitwill change the customers perceptions of the products offered andfacilitate them in making purchasing decisions. Product attributes arecharacteristics thatdifferentiate theproduct fromotherproductssuchasprice, quality, features, performance, durability, reliability, design, style,and reputation. Product attributes plays a vital role in the customersdecision-making process since customers evaluate and compare

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competitive products based on attributes. The marketer uses productattributestodifferentiatetheirproductfromtheircompetitorsandalsotodevelop a positioning strategy based on unique and relevant attributes(Akpoyomare,etal.:2012).Customersbuyingdecisionsarealso influencedby theafter-salesservice.The after-sales service, which is a part of customer relationshipmanagement (CRM), helps to enhance a customers loyalty, so companyshould focus on this part in order to attract new and retain existingcustomer (BanarjeeandSingh:2013).After-salesservice isaresponsibilityoftheselleronthequalityofthegoodsitsellsthatcanbeprovidedintheformofaguarantee,replacementofdamagedgoods,maintenance,supplyof spare parts and so on. The companywill always strive to provide thebestproductattributesintheirproduct.Inaddition,theafter-salesserviceprovided by themanufacturer also plays an important role in supportingthe success of products in themarket that has been set. Especially on adurableproductwiththeirafter-salesservice,aproductwillhaveaspecialattraction in the minds of consumers and will affect consumer buyinginterestindeterminingoftheselectionorpurchasedecisionthattheywilltake. Through after-sales service that provided by producers, customerswouldhaveapositiveoutlookontheproduct,whichtheybelievetohavegoodquality andexplains the responsibility givenby theproducer to thecustomers and the performance of the products promised. Indirectlyexistingafter-salesservices inaproduct isalsoapromotionmediaof thecompanyinattractingcustomersattention.

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Source:PT.AstraInternational,Tbk

Source:PT.AstraInternational,Tbk

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Fromtheabovegraphicsit isseenthatHondasalesin2015decreasedby18percentfromthepreviousyear.HoweverHondastillleadsthenationalmotorcyclemarketwith a 69 percentmarket share. In order to increasethe sales,Hondamust continuemakingnew innovationon their productattributes and also continue improving their after sales service to theircustomersso thatprospectivebuyerscansolidify theirdecision inbuyingHonda’sproduct.Thesewillalsohelpenhancingacustomer’s loyaltyandatthesametimeitcouldattractingnewandretainexistingcustomer.Basedontheexplanationabove,theproblemsthatthewritersfindare(1)DoesProductAttributehaveanimpacttowardsBuyingDecision?(2)DoesAfter Sales Service have an impact towards Buying Decision? (3) DoProductAttributeandAfterSalesServicetogetherhaveanimpacttowardsBuying Decision? The purpose of this research is to study the impact ofProductAttributeandAfterSalesServicetowardsBuyingDecision.

LiteratureReview&Hypothesis

ProductAttributeAccording to Kotler and Armstrong (2014), “product is all that can beoffered to the market to attract attention, acquisition, use, orconsumption that can satisfy a desire or need”. Products includemorethan just tangible goods, but also can shape the perception of thecustomers. In a broader sense, the products include physical objects,services,events,people,places,organizations,andideas.Productattributeis "the development of a product or service which involves thedetermination of the benefits to be provided. Product attributes arecharacteristicsthatcomplementthebasicfunctionsoftheproduct.Kotlerand Armstrong (2014) also summarize the types of product attributes,whichare:1. QualityProducts,

Itisoneofthemainpositioningpartsformarketers.Thequalityhasadirectimpactontheperformanceoftheproductorservice.Therefore,qualityiscloselylinkedtothevalueofacustomerssatisfaction.

2. ProductFeaturesProductcanbeofferedinawidearrayoffeatures,thebasicmodel,ormodelswiththeaddition.Companiescancreateahigherlevelmodelbyaddingmorefeatures.

3. DesignandStyleProduct

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Thatisanotherwaytoaddvaluetocustomersthroughdifferentstyleandproductsdesign.

AfterSalesServiceAccordingtoKotlerandArmstrong(2014),“aftersalesserviceisaserviceprovidedbythemanufacturertotheconsumeraftertheconsumerbuyingaproduct from the company”.Basedontheaboveunderstanding, itcanbeconcludedthataftersalesserviceisanactivitythatiscarriedoutafterthedeliveryofproductstocustomers,whichisvalidforcustomersaslongas customers have a bond of the service with the seller. Kotler andArmstrong (2014) also summarize the elements of after sales service,whichare:1. Warranty

Warranty is one very important factor in carrying out after-salesservice.Warrantyisshowntoconvinceconsumersthattheproductisin good condition or free from damage caused by inaccuracy in theconstructionoruseofpoormaterial.Warrantyisalsoapplicableforaspecificperiod.

2. ProvisionofSparePartsandAccessoriesIn the implementation of after sales service, supply of spare parts isone of the very important things because in the absence of productparts that have been damaged, components can’t function properlyand the worst case, the products can’t be reused. Provision ofaccessories isone factor thatplaysan important role in theeffortofsatisfyingcustomers,whichlateronwillmaintaintheirloyalty.

3. Service,MaintenanceandRepairService,maintenanceandrepairarenecessaryifaproducthasalonglifeconsumptionandrequiresregularmaintenanceinordertoalwaysfunctionproperly.

4. FacilitiesandEquipmentSophisticated facilities and equipment will be able to determine thesmoothness of service personnel in performing maintenance andrepairproductsthathavebeenpurchased.

BuyingDecisionAdecisioncanbemadeonlyifthereareseveralalternativeschosen.Ifthealternative is not there then the actions taken in the absence of suchoptions can’t be said to be making a decision. According to Kotler andArmstrong(2014),“thepurchasedecisionofconsumersistobuythemost

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preferred brand of the various alternatives, originating/ motivated bytwofactors,whicharethepurchaseintentionsandpurchasingdecisions”.The first factor is the attitude of others and the second factor is thesituational factors. Based on the above explanation, it can be concludedthatthe“purchasedecisionisaproblemsolvingactivitybyindividualsinthe selection of an appropriate alternative”. Specific purchase decisionprocessaccordingtoKotlerandArmstrong(2014)consistsofthefollowingsequenceofevents,whichare:1. Introductionoftheproblem

Customers are aware of their need and they are aware of thedifference between the actual conditions and the expectedconditions.

2. SearchInformationCustomersintendtofindmoreinformationactively.

3. EvaluationAlternativesStudying and evaluating alternatives that are obtained throughinquiriestogetthebestalternativethatwillbeusedtomakeabuyingdecision.

4. BuyingDecisionApplyingthedecisiontomakeapurchasebasedontheevaluationofalternativestothebrandthathasbeenselected.

5. BehaviorAfterBuyingA satisfaction degree which the customers experienced afterpurchasingaproductoraservice.

ResearchFramework

Product Attribute (X1)

After Sales Service (X2)

Buying Decision (Y)

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HypothesismodelFromtheexplanationabove,writershavedevelopedthehypothesis,whichare:1. Ho : b = 0 (ProductAttribute andAfter Sales Service has no impact

towardBuyingDecision)2. H1:b≠0(ProductAttributeandAfterSalesServicehasimpacttoward

BuyingDecision)

ResearchMethods

ResearchMethodThe method used in this research is descriptive analysis method withsurveyapproach.Methodofdescriptiveanalysisisaresearchmethodthataimstosystematicallyexplainthefactsorcharacteristicsofthepopulationoraparticularfield,factuallyandaccuratelywhichwillthenbeanalyzedbyquantitativeapproachbyusingstatistics.Methodsdescriptiveanalysisalsoaims to obtain an overview of the relationship between the phenomenaunderinvestigation.

TypesofDataBasedonhowtoobtainit,thisstudyrequiresthefollowingdata:1. PrimaryData

Primarydataarecollectedbyresearcherdirectlyfromthefirstsource(Suliyanto:2006).Primarydataisthemaindataneededtoanswertheresearchquestion.Primarydataisobtainedfromrespondentsthroughquestionnaires,andobservation.

2. SecondaryDataSecondarydataispublishedorusedbytheorganizationthatisnotthefirstsource(Suliyanto:2006).Secondarydataisrequiredtosupporttheprimarydataand resources to issues thathavenotbeen revealed inthe primary data. Therefore, this type of data can be obtained fromprevious research that is relevant to this studyandotherdocumentstoproduceandsupporttheprimarydata.

Basedonitsnature,thisstudyrequiresthefollowingdata:1. QualitativeData

Dataintheformofanopinionorjudgmentthatisnotanumberbutaformofwords,sentences,schematic,andimage(Suliyanto:2006).

2. QuantitativeDataDataintheformofnumbers(Suliyanto:2006).

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SourcesofDataSource of data required in this studywere obtained by interviewing anddistributingquestionnairestotherespondents/thecustomerswhoorwillbuy aHondamotorcycle in PT.DayaAdiciptaMotorawhich is located inJalanRayaCibeureumNo.26Bandung–WestJava.DataCollectionTechniqueData collection techniques used in this study is a field research. Directobservationisdoneinthestudysite,PT.DayaAdiciptaMotora,inordertoobtain data and information through interviews, observation, andquestionnaires.Thisresearchalsoneedsalibraryresearchthroughbooks,journals,thesis,dissertations,etc.SamplingTechniquesSamplingtechniquesthatthewritersuse inthisstudy isasimplerandomsampling technique. SimpleRandomSampling technique is a sampling ofmembersofthepopulationbyrandomlywithoutregardtostratathatexistinthispopulation(Suliyanto:2006).SamplingwasconductedoncustomerswhobuyaHondamotorcycleinPT.DayaAdiciptaMotora.SampleDeterminationofthesamplesize inthisstudy isusingtheSlovinFormula(Suliyanto:2006)asfollows:

! = !1 + !!!

Info:n=samplesizeN=Populationsizee=leewaypercentageforsamplingerrorby10%

Fromtheaboveformula,theamountofsamples(n)isasfollows:

! = 1501 + 150 0,1 !

=60person

VariableVariablesthatwillbeusedinthisresearchareproductattribute,aftersalesservice, and buying decision. Product attribute variable is measured by

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threeindicators,whicharequality,feature,anddesign.Aftersalesservicevariable ismeasured by four indicators,which are guarantee, availabilityand ease of obtaining spares part, availability of authorized workshops(Authorized Service Station), and employee services. The buying decisionvariable is measured from three indicators, which are desire to buy theproduct,desiretotrythebrand,andthedesiretorepurchasetheproduct.InstrumentDevelopment Theinstrumentusedinthisstudyisaquestionnaire.Thequestionnaireinthis study provides closed questions which are presented in accordancewith the object of research that is being investigated by the author. TheWriterswilluseLikertscalewith5pointrating,whichdetailedlikebelow:

Score Information Answer

1 StronglyDisagree SD2 Disagree D3 Neutral N4 Agree A5 StronglyAgree SA

DataAnalysisAfter the data from the questionnaire have been acquired, writers willanalyze that data with the help from SPSS 22 Software to know thecorrelationanddeterminationofproductattributeandaftersalesservicetowardbuyingdecision.Thestepsconsistof:1. Validitytest

The validity test in this study will use the Pearson ProductMomentCoefficient. Suliyanto (2006) describes the criteria for testing thevalidityofthetestthatthedecisiononaquestionisconsideredvalidiftheproductmomentcorrelationcoefficientexceeds0,3.

2. ReliabilityTestThereliability test in thisstudywilluseCronbach’sCoefficientAlpha.TheminimumrequirementsaredeemedeligibleandarereliablewhenCronbach's Alpha Coefficient (reliability coefficient) obtained greaterorequalto(≥)0,6.

3. CorrelationAnalysisData analysis technique was tested by Pearson Product MomentCorrelation. Analysis of the strength of this correlation coefficientaccordingSunjoyoetal.(2013),canbefurtherelaboratedasfollows:

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CoefficientInterval DegreeofRelationship

0,80–1,00 VeryStrong0,60–0,79 Strong0.40–0,59 Enough0,20–0,39 Weak0,00–0,19 VeryWeak

Thecorrelationcoefficient indicatesthedirectionandstrengthofthelinear relationship between variables X with variable Y. Coefficientvaluesareat-1<r>1.Apositivesignindicatesapositivecorrelation(unidirectional relationship) which means any increase in X, will befollowed by a rise in Y and each X decline is also followed by adecrease inY.Likewise,anegativesign indicatesnegativecorrelation(correlation opposite) whichmeans any increase in X then Y will befollowedbyadeclineandanyreduction inXwillbe followedalsobytheincreaseinY.

4. RegressionAnalysisAccording to Sunjoyo et al.(2013), regression analysis was used todetermine the quantitative effect of changes in the variables X(independentvariable)tovariableY(thedependentvariable).

5. CoefficientDeterminationAnalysisAccordingSunjoyoetal.(2013), thecoefficientofdeterminationaimsto determine howmuch ability the independent variable (X) explainthedependentvariable(Y).

6. Hypothesistest(t-test&F-test)Significancetesttheinfluenceoftheindependentvariabletowardthedependentvariablewilldobyusingthettest(partially)andtheFtest(simultany).

ResearchPurposeandLimitation

Thepurposeofthisresearchistostudytheimpactofproductattributeandaftersalesservicetowardsbuyingdecision.Thisresearchhasalimitationinterms of area coverage, which is only in Bandung orWest Java. Furtherresearch is needed to get the information about the impact of productattribute and after sales service towards buying decision in larger scale,such as Indonesia. This research will provide information related to theimpact of product attribute and after sales service towards buying

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decision.So,ifthecompanyhasimplementedproductattributesandaftersales service, it isexpected thet itwillhavemorecustomersbuying theirproduct and if they haven’t or aren’t optimal,managementwill considerusingittoimproveandoptimizetheirperformance.

References

Ackaradejruangsri,Pajaree.(2012).TheEffectofProductQualityAttributesonThaiConsumersBuyingDecisions.RitsumeikanJournalofAsiaPacificStudiesVolume33,2013.

Ahmad, Nawaz., Billoo, Mohib., Lakhan, Asad. (2012). Effect of ProductPackaging on Consumer Buying Decision. Journal of BusinessStrategies,Vol.6,No.2,2012,pp1–10

Akpoyomare, Oghojafor., Adeosun, Ladipo., Ganiyu, Rahim. (2012). TheInfluenceofProductAttributesonConsumerPurchaseDecisioninthe Nigerian Food and Beverages Industry: A Study of LagosMetropolis.AmericanJournalofBusinessandManagement, Vol.1,No.4,2012,196-201.

Bunn,MicheleD.(1993).TaxonomyofBuyingDecisionApproaches.JournalofMarketing;Jan1993;57,1;ProQuest,pg.38.

Hassan, Sallaudin., Hamid, Abu Bakar., Muhammad, Nik Maheran N.,Rahman, N M Naziman Na. (2010). Factors Affecting IndustrialGoods Buying Decision Making in a Manufacturing Company.Journal of Marketing and Management, 1 (1), 1-20, November2010.

Hussain, Nazim., Bhatti, Waheed., Jilani, Azhar. (2011). An EmpiricalAnalysis of After Sales Service and Customer Satisfaction.Management&MarketingChallenges for theKnowledge Society(2011)Vol.6,No.4,pp.561-572.

Jogiyanto, H.M. (2010).Metodologi Penelitian Bisnis: Salah Kaprah danPengalaman-Pengalaman. Edisi Pertama, Cetakan Ketiga.Yogyakarta:BPFE.

Kotler,Philip.&Armstrong,G.(2014).PrinciplesofMarketing.15thEdition.UnitedStatesofAmerica:Pearson.

Ladokun Isaac.O, Adeyemo S.A., Ogunleye P.O.(2013). Impact Of AfterSalesServiceOnConsumerSatisfactionAndRetention.AStudyofLG Electronics in Ibadan, Nigeria. IOSR Journal of Business andManagement(IOSR-JBM),Volume11,Issue4(Jul.-Aug.2013),PP54-58.

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Rangarao, Pandu. (2013). After Sales Service For Honda Motors – AnEvaluative Study. Indian Journal of Commerce & ManagementStudies,VolumeIVIssue1,Jan.2013.

Saeed, Rashid., Lodhi, Rab Nawaz., Majid, Muhammad Bilal., Rana,Muhammad Iqbal., Mahmood, Zahid., Ahmad, Moeed. (2013).Impact of After Sales Service on Consumer Buying Behavior inSahiwal Pakistan. Management and Administrative SciencesReview,Volume:2,Issue:5,Pages:555-562.

Setiawan, Heru Putra., Jushermi., Ibrahim, Restu. (2014). Analysis theInfluence of Marketing Mix and After Sales Service TowardsPurchase Decision on Toyota Yaris at PT. Agung Automall Duri.JournalOnlineUniversitasRiau,Vol1,No1(2014),Pages:1-14.

Sonali,Banarjee.,Singh,Poonam.(2013). ImpactofAfterSalesServiceonCunsomers Buying Behaviour For Consumer Durables: WithSpecial Reference to Air Conditioners. International Journal ofApplied Services Marketing Perspectives. Volume 2, Number 2,April-June’2013,369-374.

Suliyanto.(2006).MetodeRisetBisnis.Yogyakarta:ANDI.Sunjoyo., Setiawan, Rony., Carolina, Verani., Magdalena, Nonie., dan

Kurniawan, Albert. (2013). Aplikasi SPSS Untuk Smart Riset(ProgramIBMSPSS21.0).Bandung:Alfabeta.

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THEEFFECTSOFELECTRONICSERVICEQUALITY(E-SERVQUAL)AND

BRANDTRUSTTOWARDSREPURCHASEINTENTION

(CASESTUDYTOONLINEBOOKINGAPPS.USERSAIRBNB.COM)

IrsalFadjriansyah,StudentID.120820150512EdoRudianto,StudentID.120820150514

MagisterManagementProgramPadjadjaranUniversity(MMFEBUNPAD)

RESEARCHBACKGROUND

Globalizationseemsalotliketheweatherattimes:wealltalkaboutit,butwhat canwe do to change it? The facts of globalization are undeniable.This era brings a global impact through all aspects. Ifwe talk about howglobalizationimpacttowardsthebusinessgoing,theinternetandmobiletelecommunicationshaveanincreasingimpactontheextentandpaceofcommunications.Forbusinessowners,thedevelopmentcarriesagoodeffecttoimprovinginnovationandevaluateinbusiness.Alotofbusinessesstarted moving forward from business as a conventional thing andbecoming digital. The factors that affects the improvement of digitalbusiness also based on the usage of the internet which increasedcontinuously.TheInternethasbecomeaplacewheremillionsofpeopleallovertheworldgetinformations.Around40%oftheworldpopulationhasan internet connection today while in 1995, it was less than 1%. Thenumber of internet users has increased tenfold from 1999 to 2013. Thefirst billion was reached in 2005. The second billion in 2010. The thirdbillionin2014.The chart and tablebelow show thenumberof global internetusersperyearsince1993:

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InternetUsersintheWorld

(source:http://www.internetlivestats.com/internet-users/)InIndonesiaitself,internetusagesareincreasedyearbyyear.ThenumberofInternetusersinIndonesiareachedalmost139millionthisyearorequalto some40percent of the population,with accessing socialmedia beingthehighestactivity.Otheractivitiesincludesearchingforinformationsuchas news and emailing. As shown in the diagram below, Indonesia is acountrywithveryfastincreasinginternetusers.

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Withanincreaseininternetuserssuchasthepictureabove,Indonesiawillhave over 100 million internet users, growing 22% compared to thepreviousyear.Drivenbysuchmassivenumbers,moreandmorebusinessesand investors are looking at starting an online business or maybe at e-commerce business in Indonesia. It’s stated that this opportunityfrequently used by business owners to offer business systems based ondigital or mostly known as an online business. Online business or e-business (electronicbusiness theconductofwholebusinessprocessesontheInternet.Theseelectronicbusinessprocessesincludebuyingandsellingproducts, supplies and services; servicing the customers; processingpayments; managing production control; collaborating with businesspartners;sharinginformation,andmore.One example of an online business is an online booking system. Onlinebooking system is a tool used by organisations tomanage their businesstravel online. As well as booking, online booking usually allowsorganisations toview real-timedataon theirbusiness travel spend, tracktheir travellersonline andenforcebusiness travel policy. Indonesiahas alotofonlinebookingbasedapplicationsuchasAirbnb.com,Traveloka,Mr.Aladin,Pegipegi.com,Agoda,andmanymore.Wepickoneofthoseonlinebookingappstoanalyzehowtheirservicequality that theyservedtothecustomer, and how this application would be useful and creating somecustomer loyalty and customer satisfaction yet repurchase intentionsthough.Airbnb.comisanexampleoftheglobalwanttoorderahomestay,hotel,orresidence for those who want to take their trip through holiday transiteither for domestic people or foreign people. Airbnb is an onlinecommunitymarketplacethatconnectspeoplelookingtorenttheirhomesfor people who are looking for accommodations. Airbnb users includehosts and travelers: hosts list and rent out their unused spaces, andtravelerssearchforandbookaccommodationsin192countriesworldwide.Adiminutionof "airmattressB&B,”Airbnbhas grown fromappealing tocouch-surfing budget-conscious tourists to business travelers seeking amorememorableexperiencethatallowsadifferent levelofcollaborationamongstcolleagues.FoundedbyJoeGebbiaasaCPO&Co-Founder,BrianCheskyasCEO&Co-Founder,and lastNathanBlecharczykalsoasCTO&Co-Founder in August of 2008 and based in San Francisco, California,

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Airbnbisatrustedcommunitymarketplaceforpeopletolist,discover,andbookuniqueaccommodationsaroundtheworld—onlineorfromamobilephoneortablet.Whetheranapartmentforanight,acastleforaweek,oravillaforamonth,Airbnbconnectspeopletouniquetravelexperiences,atany price point, inmore than 34,000 cities and 191 countries. Andwithworld-classcustomerserviceandagrowingcommunityofusers,Airbnbistheeasiestwayforpeopletomonetizetheirextraspaceandshowcase ittoanaudienceofmillions.

“......AccordingToAirbnb,TheyProvide“ATrustedCommunityMarketplaceForPeopleToList,Discover,AndBookUniqueAccommodationsAroundTheWorld….”AirbnbHostsListTheirProperties-WhichCanBeSingleRooms,ASuiteOfRooms, Apartments, Moored Yachts, Houseboats, Entire Houses Or Even ACastle-OnTheAirbnbWebsite.It'sFreeToCreateAListing,AndHostsDecideHowMuchToChargePerNight,PerWeekOrPerMonth.EachListingAllowsHosts To Promote Properties Through Titles, Descriptions, PhotographsWithCaptions And A User ProfileWhere Potential Guests Can Get To Know A BitAbout The Hosts. Travelers (Or "Guests") Search The Available Database OfPropertiesByEnteringDetailsAboutWhenAndWhereThey'dLikeToTravel.”(Source:Www.Investopedia.Com)

Wearecertainthatanybusinessdoeshavethesamepurpose,whichistomake the people aware of the business itself, to earn benefit of its ownvalue by people, and so on shall come the side of customer loyalty forproductsorservicesoffered.Toachievebusinesssuccess,companiesmustbeabletomakesuretheneedsandthedesireoftheircustomersandallthatcameintoexistenceincorporateservices(Taylor,2001).Itistooeasyfor how business owners could make a differentiation about how theirbusiness going if the product has a more added value. In terms ofmeasuring the quality of services, awebsite based or online application,wemay use electronic service quality or e-servqual. Parasuraman et al.(1985 ) said that the quality of services or service quality ( servqual )designedtomeasurethegapbetweenperceptionofcustomerserviceandtheir perceived quality of services. Lovelock and Wright ( 2008: 98 )explainedthatfivestandarddimensionofthequalityofservices,coveringtangible, dependability, reliability, responsiveness, guarantee, andempathy.However,thedimensionofservqualwasnotexactlymatchedtothe context of online services, because it shows the difference and theprocessofbeinguniqueforthedeliveryofservices.Theimportanceofthequalityofservicesfacingelectronicbasedservicesrequirespurposetothemanagement about customers’ attributes thatwill be used in evaluatingthequalityofservicesonlineitself.(YangandPeterson,2004).

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A method of servqual developed into webqual as one method ortechnique for themeasurementof thequalityofwebsitesperceptionsofthe customer. Webqual have been developed since 1998 and now thelatest one is webqual 4.0 ( Sanjaya, 2012 ). As the innovation andevaluationthroughservicequality, itwill createcustomerperceptionandloyalty for customer repurchase intentions. The customer interest torepeataservice ishighlydependsonhisorherexperiencesbybuyingorusingservicesalsowithpleasureandhistrusttotheservice.Assael(2004:2)saidthatthehigherunderstandingmarketersorbusinessownersaboutthe factors for consumer behavior, the better the marketing strategyshould be effective that developed to improve loyalty consumers with alongtermprofitability.

LITERATUREREVIEW

ServiceQuality

Service quality can be defined as the observation of customer aboutserviceitemsthatincludequalityofphysicalatmosphere,resultedquality,and interfaced quality. Furthermore, these service items can also beestimated on the basis of detailed dimensions of quality, awareness,consistencyandpromises. Inaddition to this, servicequalitycontains theexchange of relationships between the salesperson and the purchasers.Duetothebetterservicesprovided,customerwantstoavailtheservicesatshop.Thisresultedintheextensivecoordinationbetweensalespersonandconsumer. Service quality can be defined as the divergence betweencustomer image about the service presentation and his/her expectationsforservices.Servicequalityisanessentialiteminbuildingthebrandtrustand defined in other words as the decisions that are resultant from theestimation process inwhich customers differentiate the service providedto them and the services they perceived (Parasuraman et al, 1988). Thecustomer’sdecisionaboutthewholeperformanceoftheserviceproduct(Zeithaml1988).Ifthequalityexperiencedbythecustomerisaccordingtothequality they expect about thebrand, this resulted in a better serviceandperceivedqualityGronroos (1988). Themodelof servicequality thatgot fame was presented by Parasuraman et al. (1985, 1988). There is amajor effect of service quality on the loyalty of customers (Bolton andDrew 1991). Some scholars suggested that only those elements have amajor effect on brand loyalty that is not intangible but gives a response

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(Kayaman and Arasli 2007). The quality perceived by the customer andtheir satisfaction level the indirect link among brand loyalty and servicequalitycanbedefined(Chittyetal.,2007).E-ServiceQuality

According to Parasuraman et.al. ( 2005) e-SQ is defined broadly toencompass all phases of a customer’s interactions with a Website: Theextent to which a website facilitates efficient and effective shopping,purchasing, and delivery. Ruyter et al. (2001, p. 2) describe e-service as“content-centred and internet-based customer service, driven by thecustomer, with the goal of strengthening customer-service providerrelationships”. Collier and Bienstock (2006) defined e-SQ as “customer’sperceptionsoftheoutcomeoftheservicealongwithrecoveryperceptionsifaproblemshouldoccur”.Rowley(2006)givesadefinition inconclusionofmany scholars’ opinions, “e-service, based on information technology,includes the information provision and system support, the logistictransportationofserviceandthetraceandexchangeofinformation”.Zeithaml et al. (2002, p. 363) were first, with “the extent to which awebsite facilitates efficient and effective shopping, purchasing, anddelivering of products and services”. According to Boyer et al. (2002, p.175), e-services can be defined as: “all interactive services that aredelivered on the internet using advanced telecommunications,information, and multimedia technologies. “Boyer et al. (2002, p. 175)defined “e-service as delivery of all interactive services on the internet,using advanced telecommunications, information, and multimediatechnologies”.Parasuramanetal. (2005)believethate-servicequality, tosome extent, refers to the effectiveness and efficiency of online browse,online purchase, and delivery of goods and services. One of the firstdefinitions of quality in such e-serviceswas suggested by Zeithaml et al.(2000, p. 11) who defined e-SQ as: “the extent to which a websitefacilitatesefficientandeffectiveshopping,purchasinganddelivery“.E-ServiceQualityDimension

On the basis of a comprehensive review and synthesis of the extantliterature on e-SQ, Zeithaml, Parasuraman defined a set of criteria asrelevant to e- SQ perceptions: (a) Efficiency, (b) Fullfilment (c) SystemAvailabilityand(d)Privacy.Santos(2003)inthisregarddiscussede-servicequalitydimensionsasconsistingof,easeofuse,web-appearance,linkage,

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structure and layout, content as the incubative dimensions; reliability,efficiency, support, communication, security, and incentive as activedimensions.BrandTrust

Berry and Parasuraman (1991) find that the consumer-companyrelationship requires trust, especially in services marketing, because thecustomermustbuytheservicebeforeexperiencingit.Arjun&Morris(2001)thinks that the brand trust is when a consumer would like to trust onhis/herowninitiative,andtrusttheproductthatthebrandprovides.Trustcan reduce the consumer's uncertainty, because the consumer not onlyknowsthatbrandcanbeworthtrusting,butalsothinksthatdependable,safe andhonest consumption scenario is the important linkof thebrandtrusts.RepurchaseIntention

Severalauthorsdefineloyalty(Oliver,1999;Meyer,Blümelhuber,2000)asconsumers’commitmenttoaparticularorganization,butOliver’spointofview is one that is widely accepted. So, loyalty is a deeply heldcommitment to re-buy or re-patronise a preferred product/serviceconsistently in the future, despite situational influences and marketingefforts having the potential to cause switching behaviour (Oliver, 1997).Hence, a repurchase is possible with establishing and managingrelationshipswithcustomersthroughadaptingorganizations’offeringandthroughconstantlyprovidingvalueandenhancingsatisfaction.Atrulyloyalcustomer,that is,apartner, isestablishedthroughtheconstantprovisionofhighervalueandsatisfaction.Oneofthecharacteristicsofatruly loyalcustomer is the possibility to reach premium loyalty (Dick, Basu, 1994;Griffin, 1997). This type of loyalty is characterised by high repurchasepatronage and high relative attitude towards the organization. Someorganizationsaremoresuccessful indeveloping loyaltyandcreating loyalcustomers.Theseorganizationsareconsideredloyaltyleaders.Theirabilityto develop and sustain loyal customers is based on providing superiorvalue, the right customers and the right employees as well as enduringcommitmenttodeveloployalty(Reichheld,2001).Customerloyaltycanbeexplored through repurchase intentions (Dick, Basu, 1994; Jones, Taylor,2007; Bloemer, Odekerken-Schröder, 2007). Exploring behaviouralconsequencesof customer loyalty canbe seenashaving the intention tobuy or use an organization’s product/service more often in the future

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(Zhang,Bloemer,2008;Garbarino,Johnson,1999).Hence,whenaimingtoboostrepurchaseintentions,organizationsshouldfocusnotonlyonmererepeated buying through different promotional activities, but try toprovoke customers a commitment and preferable attitude towards theirorganization.ConceptualFramework

Source:Zeithaml,MaryJoBitner,DwayneD.Gremler

(SevicesMarketing2009)

RESEARCHMETHODS

The type of research in this study is quantitative approach methods.Sugiyono (2010: 14), quantitative is researchmethods that are based onthe philosophy of positivism, is used to examine the population or aparticularsample,thetechniqueisgenerallycarriedoutatrandom,usingadata collection instrument of research, quantitative data analysis orstatistics in order to test the hypotheses that have been established.Quantitative method is called traditional method. The objective of thisresearch to testhypothesis thathasbeenset for researchpopulationorsample.ResearchObject

This research type is descriptive quantitative approach. The correlationstudyexamines the relationshipbetweenvariables, involvingat least twovariables. Correlation studies aimed at revealing the correlationbetween

RepurchaseIntentions

(Y)

E-ServqualDimension(X1)

EfficiencyFullfilment

SystemAvailabilityPrivacy

BrandTrust(X2)

BrandReliabilityBrandIntention

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electronic service quality and brand trust on repurchase intention. TheobjectofthisstudyarethosepeoplewhohavebeenusingAirBnbfortheironlinebooking.PopulationandSampleResearch

Thepopulation(Sugiyono2011 :61)thepopulationmeansgeneralizationregion consists of objects/subjects that have certain qualities andcharacteristics are determined by investigators to be studied and thendrawntheconclusion.ThepopulationofthisreseacrhisalltheuserswhohaveusedairBnB.com.Sample(Sugiyono:2011:62)ispartorthenumberand characteristics possessed by the population. The sampling techniqueusedinthisstudyistheresearchuseofprobabilitysamplingtechnique.Probability sampling used in this study is a simple random samplingtechnique.Probabilitysampling(Sugiyono2011:63)isasamplingtechniquethat provides equal opportunity for each element (member) of thepopulation to be elected as members of the sample. Random samplingtechnique(Sugiyono2011:64)ismemberstakingsamplesofthepopulationrandomlywithoutregardtostratathatexistinthepopulation.Thenumberof samples from this research were 30 person sample who have usedairBnB.com.DataCollectionMethods

Theprocessingofdataare:1. Edit,namelyactivitiesexamineandre-examinethedataobtainedfrom

the questionnaires and interviews, to determine whether there is asufficient and complete data or whether there needs to be acorrection.

2. Coding,theactivityclassificationofdatafromrespondentstoprovidethe code or symbols and balanced according to the existing criteria.AnswereachitemoftheinstrumentusingaLikertscaleintheformofoptions. Likert scale used to measure attitudes, opinions andperceptionsofapersonoragroupof socialphenomenon (Sugiyono,2005).Foreachitemstatementwasgivenascoreofonetofivefromthelowesttothehighest.

3. Tabulation,whichactivitiestoperformdataprocessingintabularformbyprocessing the frequency countof each category, eithermanuallyorwiththeaidofacomputer.

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ResearchVariable

Togettheproperresearch,thevariablesnecessaryforthedatacollectionand discussion focused. The variables in this study are e-servqual andbrand trust as independent variables while the repurchase intentions asthedependentvariable.Theparameters investigatedaredescribedinthetablebelow:

E-SERVQUALDIMENSION(X1)

Bookingonlineservicequalityperformance

Efficiency AbletoeasilyfindwhatIneedinAirbnb.comEaseofaccessAirbnb.comAirbnb.comcanhelpbookingtrevellingAirbnb.comcanhelpeasepaymentAirbnb.comloadapagethatuserswanttoaccess

Fullfilment DemandcanbefulfilledaccordingtothetermsandconditionsRequestsarefulfilledwithouterrorServicesinlinewithexpectationsInformationcanbetrustedOfferingonthesiteandappisclearReuseofsitesandapplicationsRecommendsitesandapplicationstoothers

SystemAvailability ApplicationisalwayseasytouseanytimeSitesandapplicationscanbequicklyaccessedThereisnointerruptioninaccessingthesiteorappSitesandapplicationsrunningstableaccordingtotheuserswants

Privacy Sitesorappsmaintainingtheconfidentialityoftheuser'sidentityProtectsallinformationcontainedoncustomersSitesorappsdoesnotsharedataorinformationto

BrandTrust

BRANDTRUST(X2)

BrandReliabilty IamcertainbecauseIusedtheAirbnb.comAirbnb.comalwaysprovidecomfortinuseforwhattheusersAirbnb.comensurethesafetyandsatisfactionforusersthroughtheproductsofferedQuickandpracticalprocedureintheAirbnb.com

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usageAirbnb.comhasgoodfeaturesinservingconsumers

BrandIntention Airbnb.compresentsthebestdisplayforconsumersAirbnb.comisanapplicationthatcanbetrustedforonlinebookingAirbnb.comalwaystryingtosatisfycustomerswithsystemsofferedAirbnb.comprovideswarrantyandcompensationwhenthingsgowrongREPURCHASEINTENTIONS(Y)

MeasurementVariable

Thescaleofmeasurementisanagreementthatisusedasareferencefordeterminingthelengthoftheshortintervalinthemeasuringtool,sothattheinstrumentswhenusedinthemeasurementswillproducequantitativedata (Sugiyono 2014: 92). In this study used the Likert Scale. Sugiyono(2014: 93) Likert Scale used to measure attitudes, opinions, andperceptionsofapersonoragroupofsocialphenomenon.The data that will be used in this research is the primary data gatheredfrom the questionnaire. The questionnaire itself will be given to themanager customerwhohave triedonlinebooking.Writerswill use Likertscale as measuring scale to evaluate the answers from all respondents.Malhorta & Birks (2006) said that Likert scale can be used to measuresomeone’s or group’s gesture, opinion, and perception about aphenomenonand canbemeasuredquantitatively.Writerswill use Likertscalewitha5pointrating,whichdetailedasbelow:1=StronglyDisagree2=Disagree3=Neutral4=Agree5=StronglyAgreeDataAnalysisMethods

Sugiyono (2012: 206), the data analysis is an activity after all the datacollected. Data analysis techniques used in this research are descriptiveanalysis and path analysis. Sugiyono (2012: 147) descriptive statistics arestatisticsusedtoanalyzedatainwaysthatdescribeordepictthedatathathasbeencollectedasitiswithoutintendingtoapplytogeneralconclusions

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orgeneralizations.Pathanalysis(Sugiyono2011:297)isusedtodelineateand test the model of the relationship between variables in the formcausality(notaformofinteractiverelations/reciprocal).Data processing techniques using computational program SPSS 20.0(Statistical program for Social Science) is a statistical computer programthatisabletoprocessstatisticaldataaccuratelyandquickly,intoavarietyofdesiredoutputdecisionmakers.Analysisofthedata isprocessingdataobtained by using formulas or rules that are applicable to the researchapproach(Arikunto,2006).

RESEARCHPURPOSE,LIMITATIONANDORIGINALITY

The purpose of this research is to study the impact of THE EFFECTS OFELECTRONIC SERVICE QUALITY (E-SERVQUAL) AND BRAND TRUSTTOWARDSREPURCHASE INTENTION (Case Study toOnline BookingApps.Users Airbnb.com). This research has a limitation in terms of areacoverage, which only covers customer who have tried online bookingapplicationsAirbnb.com.

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Kassim,N.andN.A.Abdullah.2010.TheEffectofPerceivedServiceQualityDimensions on Customer Satisfaction, Trust, and Loyalty in E-Commerce:127

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future research and managerial practice. Marketing ScienceInstitute:00-115.

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EFFECTOFCITYMARKETINGANDCITYIMAGETOWARDTOURISTREVISIT

INTENTION:CASESTUDYTOWARDTRAVELERINBANDUNGCITY

JayantiBudiman,StudentID.120820150501YovinoDwiputra,StudentID.120820150513

MasterofManagementProgram,FacultyofEconomics,andBusinessUniversitasPadjadjaran(MMFEBUNPAD)

RESEARCHBACKGROUND

Indonesia has many areas as tourism potentials. In order to introducetourist attractions in various parts of Indonesia, the government hasdifferentstrategiessothattheareaiswellknownbytourists.Indonesiaasa country that has the potential of nature and culture that are able toattracttheattentionofbothdomesticandforeigntouristswiththenaturalpotential of which is owned by Indonesia. In developing the tourismpotential, a concept of the concept of a more modern city branding isneeded.However, there are several cities in Indonesia to implement theconcept of city branding as a strategy form the image of the city, is asfollows:1. JakartaCity,thatis“EnjoyJakarta”.2. SoloCity,thatis“SpiritofJava”.3. YogyakartaCity,thatis“NeverEndingAsia”.4. BatuCity,thatis“ShiningBatu”.Aside from the cities above, Bandung also applies City Branding (ImageCity)that is"ParisVanJava".Byapplyingtheconceptoftheimageofthecity as a form of Bandung strategy to attract the attention of bothdomesticandforeigntourists.Tourism, which is one of the most important economic sectors in theeconomic development of an area as revenue of a State. In the tourismsector, todeveloptheeconomyofa region in theprovinceofWest Java,especially the city of Bandung as a tourist destination that has varioustravels, namely nature, historical, cultural, culinary, religious, shoppingtourism. Here is the number of both foreign and domestic tourists whovisitthecityofBandungtheyear2010-2013,asfollows:

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Table1

TouristVisittoBandungYear2010-2013(People)

Year TouristInternational

TouristDomestic Tourist

2010 685.347 14.854.317 15.539.664

2011 676.755 19.461.717 20.138.472

2012 530.565 15.241.752 15.772.317

2013 529.296 16.164.876 16.692.287Source:DepartmentofCultureandTourismBandung

BasedonTable1.1 itcanbeseenthat thenumberof touristarrivalsanddomestic tourists who traveled to the city of Bandung in 2010-2013increased,whereasintheyear2012hasdecreasedfrompreviousyears.The increasingnumberoftouristsbothforeignanddomestictouristswasinfluenced by the role of the local government of West Java ProvinceBandung inpromoting tourismpotentials. By applying strategy inmakingthecitytohaveastrongpositionbothregionallyandglobally,theauthorsareinterestedtofurtherinvestigatetheimpactofCityMarketingandCityImage(Branding)towardstouristswhoreturnedtothecityofBandung.

RESEARCHQUESTIONS

1. To study the impact of city marketing, city image and tourist revisitintention;

2. Toanalyzethecomponents,attributesandfactorsinfluenceofthecitymarketingandcityimage;

3. Toexaminetheattributesoftouristrevisitintention.

LITERATUREREVIEW

CityMarketing

Citymarketingisthepromotionofacity,oradistrictwithinit,withtheaimofencouragingcertainactivitiestotakeplacethere.It isusedtoaltertheexternalperceptionsofacityinordertoencouragetourism,attractinwardmigrationofresidents,orenablebusinessrelocation.Asignificantfeatureof city marketing is the development of new landmark, or “flagship”,buildingsandstructures(Smyth&Hedley,1994,pp.2-3).Whileaccordingto Tross (2006), explains that city marketing can be seen as one of the

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results of the introduction of non-profit marketing, which allows thedefinitionofmarketingtobebroadened.Itisthusrelatedtoanincreasingdemandfrompublicsectorformarketingconcepts.Another definition by the American Marketing Association (AMA) is thecoordinated use of marketing tools supported by a shared customer-oriented philosophy, for creating, communicating, delivering, andexchangingurbanofferingsthathavevalueforthecity’scustomersandthecity’scommunityatlarge(Braun,2008,p.43).Thosetwodefinitionsfitourview of the concept of City Marketing and complete each other. Citymarketingmanagementistheprocessofsettingmarketinggoalsforacity,the planning and execution of activities to meet these goals, andmeasuringprogresstowardtheirachievement.CityImage

AccordingtoBirgit(2001),explainsthatimagerepresentstheexpectationsoftouristsandisamajorfactorofconsiderationwhentheyarechoosingadestination. The image of a city is one of the most important successfactorsintourism(KampshulteA,1999,p.235).AccordingtoEchtner&Ritchie(1991),explainsthattheterm“image”hasahandfuldefinitionsanditalldependswiththeresearcher’spointofview.Notably,most studies avoid precise definitions and not explicitly expressthis1termtofacilitatetheconceptdependingwithnatureofthesituation.WhileaccordingtoWilliam(1976),explainsthataddsthatthetermimagehasbeendefinedinvariousconnotationstosuitthedescriptionofagivenpurpose. Generally, image would refer to artificial construction of anobjectorscene.However,thetermimageiswidelyinclinedasareputationof a place or product. According to Mayo & Jarvis (1981), explains thataddedthatimageisregardedperpetualwhenitcomestoplacemarketing.According to Jenkins (1999), explains that a destination image is theexpression of all objective knowledge, impressions, prejudice,imaginations, andemotional thoughts and individual or group thatmighthave of a particular place. According to Nagashima (1970), explains that“The picture, the reputation, the stereotype that businessmen andconsumers at theproducts of a specific country. This image is createdbysuch variables as representative products, national characteristics,economicandpoliticalbackground,history,andtradition”.

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HoweverforthepurposeofthisstudyweadoptthedefinitionbyKotleretal(1993),“placeimageisasumofbeliefandimpressionsthatpeoplehaveof place. Images represent a simplification of a large number ofassociationsandpiecesofinformationconnectedwiththeplace”.Naturallyimage develops from experience, orientation or knowledge andendorsements of stereotypical experience on an event. Further, imageconceivedbyanindividualcanbepositiveornegativedependingwiththeexperience of information that an individual has received (Kotler andBarich, 1991, 251). Image is an important representation of how touristsfeelaboutadestination(Hunt,1975;HU&BAI,2013).AccordingtoFakeye&Crompton(1991),explains that imagerefers toanindividual’s beliefs, thoughts and impressions about a location, andprovidestouristswithacertainfeelingofanticipation.WhileaccordingtoLeisen (2001), explains that it also represents their expectations of adestination,whichcanmotivatethemtomakeavisit.

TouristRevisit

Tourism is defined as "the sum of the phenomenon and relationshipsarising from the travel and stayofnon-residents in so far as theydonotlead to permanent residence and are not connected with any earningactivity".ThisdefinitionwasformulatedbySwissProfessorsHunzikerandKrapf in 1939was accepted by the International Association of ScientificExperts in Tourism (WEST); and it is, by far, themost popular definitionamong all the definitions of tourism. According to Mathieson and Wall(1982),explainsthatcreatedagoodworkingdefinitionoftourismas"thetemporary movement of people to destinations outside their normalplacesofworkandresidence,theactivitiesundertakenduringtheirstayinthose destinations, and the facilities created to cater to their needs”.UnitedNationsWorldTourismOrganisation(UN-WTO)hasdefinedtourismas. Itcomprisestheactivitiesofpersonstravelingtoandstaying inplacesoutside their usual environment for notmore thanone consecutive yearfor leisure,businessandotherpurposesnot relatedto theexerciseofanactivityremuneratedfromwithintheplacevisited.

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ResearchFramework

RESEARCHMETHODS

Thereforebasedonthenatureofthisstudy,qualitativestudyisemployedtoexplore the researchquestions.To thecentral focusof this study is toelicit the roleof thecity image in tourist revisit intention. In this respect,theunitofanalysisisBandungCity,WestJava.The research purpose of a case study can differ from exploratory,descriptive,andexplanatoryYin(1994).Thus,bynaturethisstudypertainstoexploratorymethod,asthepurposeoftheempiricalstudyistoexploreif there isrelevanceofthepresentedtheory intheBandungCitycontext.Secondly, the study determines whether city image is a factor ininternational promotion. Furthermore, this study has adapted qualitativemethod for two fundamental reasons. Firstly, the approach is best toinvestigateopinionsfromSAbrandpromoters.Second,qualitativemethodcan allow the respondent(s) freedom of expressing opinions, views, andargumentation that might not have risen explicitly through otherapproaches.With regard to the research question, literally the overall objective is toexplore how does the country image cues affects in the internationalpromotion. To further elaborate the research questions, how the imageshapes activities of tourist destination. Hence, in reviewing availableliterature on the topic focus was placed whether available models andtheoriescoincidewiththepostulatedhypotheses.Nevertheless,natureofthequestionandtopicdiscussedderivesfromthetheoreticalpart.Thiswillassist toverify theoretical reviewagainstacase

City Marketing

City Image

Tourist Revisit

Intention

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study. Moreover, investigation questions were generated by reviewingrelevant literature(s) and nature of the problem. It was taken intoconsiderationthat,theresearchersshouldcreateconduciveatmosphereasthis study topic is sensitive by nature. In addition, the questions weredesigned to cover the background information of the organization inquestion,consequentlyinordertomeetstudyeligibility.Elements such as branding, promotion strategies, image cues,communicationstyleandsignificanceofawarenessarediscussedatlarge.

RESEARCHPURPOSE,LIMITATION,ANDORIGINALITY

The purpose of this section is to present the findings based on thepremisesoftheresearchquestions.Thisresearchhasalimitationintermsofareacoverage,whichisonlyinBandungcity.Furtherresearchisneededtoget the informationabout the impactofcitymarketingandcity imagetowards tourist revisit intention. This research will provide informationrelated to the impact of city marketing and city image towards touristrevisitintention.

REFERENCE

Barich H., P. & Kotler. 1991. A Framework For Marketing ImageManagement.SloanManagementReview,No94,pp.94-104.

Birgit, L. 2001. Image Segmentation: The Case of A Tourism Destination.Journal of Services Marketing, 15(1), 49-66.http://dx.doi.org/abs/10.1108/08876040110381517.

Braun, E. 2008. City Marketing: Towards An Integrated Approach.Rotterdam:ErasmusResearchInstituteofManagement(ERIM).

Dinas Kebudayaan dan Pariwisata Kota Bandung. 2014. LaporanPerusahaanMICEKotaBandung.Bandung.

Echtner, C.M., & Brent Ritchie, J.R. 1991. The Measurement of TourismDestination Image. Calgary: University of Calgary. UnpublishedPaper.

Fakeye, P. C., & Crompoton, J. L. 1991. Image Differences BetweenProspective, First-Time, and Repeat Visitors to The Lower RioGrande valley. Journal of Travel Research. 30(2), 10-16.http://dx.doi.org/10.1177/004728759103000202.

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Hu, X., & Bai, K. 2013. A Study On The Tourism Destination ImageRestoration Scale: A Contrast Perspective of Domestic andInbound Tourists Integration. Tourism Tribune/Lvyou Xuekan,28(9),73-83.

Kampshulte, A. 1999.Image As An Instrument of Urban Management.GeographicaHelvetica.Vol.54,No.4,pp.229–241.

Kotler, etc. 1993. Marketing Places Attracting Investment, Industry andTourismtoCities,StatesandNations.

Leisen,B.2001. ImageSegmentation:TheCaseofATourismDestination.Journal of Services Marketing, 15(1), 49-66.http://dx.doi.org/10.1108/08876040110381517.

Mayo, E. & Jarvis, L. 1981.The Psychology of Leisure Travel: EffectiveMarketing and Selling of Travel Services. Boston: CBI PublishingCo.,Inc.

Nagashima,A.1970.AComparisonofJapaneseandUSAttitudesTowardsForeignProducts.p68-74.

Smyth,H.1994.MarketingTheCity:TheRoleofFlagshipDevelopmentsInUrbanRegeneration.Taylor&Francis.London.

Yin,R.1994.CaseStudyResearch:Designandmethods2ndEd.ThousandOaks,CA:SagePublishing.

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ANALYSISOFTHEINFLUENCEOFUSEREXPERIENCETOWARDUSER

SATISFACTIONWITHSOCIALMEDIA

(ACASESTUDYONSNAPCHATUSERINBANDUNG)

MardalenaHutabarat,StudentId.1208200150524SitiAuliaFarha,StudentId.1208200150528

MasterofManagementProgram,FacultyofEconomicsandBusinessUniversitasPadjajaran(MMFEBUNPAD)

ResearchBackgroud

Internet users continue to increase from time to time, along with theincrease in mobile phones, tablets and laptops worldwide. Beside, theproliferation of social media is driving the explosion of internet usersaround theworld.Now theaccessof Internet isnotonly for residents inthemetropolis,buthasbecomepartofpeople living in rural areas. Evenforsomepeople, the Internethasbecomeanecessity,becausetherearenodayselapsedwithoutaccessingtheinternet.Graphicbelowisagraphoftheworld's Internetusersobtained from the InternetWordStats,namelyaninternationalwebsitewhichhasup-to-dateworldInternetUsage.

Source:www.internetworldstats.com

Inthegraph,it isclearlyseenthatAsiaisthelargestInternetusersintheworldachieving1,076,681,059users.Wecan see thenumberof internet

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user is growing up every year. ComScore, a company based provider ofresearchservicestomeasurewebsiteactivity,theyhavereleasedtheirfullreporton thestateof Internetusage in2010 inSoutheastAsia, includingIndonesia. Inthereport, therearepointsof interestabouttheuseoftheInternet in Indonesia, the graph below shows images that explain thesepoints.

ThepictureofInternetuse

Source:www.teknojurnal.com

Social networking is a part of social media. The use of social media isstronglyinfluencedbyuserexperience.Thisisfurtherstrengthenedbytheannouncement of the results of a study conducted by Oracle on thechallenges,strategies,andmeasuresshouldbetakentocreateagooduserexperience.Oracle'sglobalsurveywasconductedbyinvolving1,342seniorexecutives inNorthAmerica,Europe,AsiaPacific,andLatinAmerica.Thestudysuggeststheimportanceofuserexperience,theresearchalsoshowsthatsocialmediaplaysamajorroleinprovidingservicesandproductsforconsumers.81percentofexecutivesbelievethatcustomerexperiencecanbeenhancedthroughsocialmedia.One socialnetworking ison the rise today is theSnapchat. Snapchat is amobileapplicationthat allows users to send and receive self-destructingphotosandvideos.PhotosandvideostakenwiththeapplicationarecalledSnaps. Snapchat uses the device's camera to capture Snaps andWi-fitechnology to send them.Theapplicationallows thesender todraworinsert text on the Snap and determine how many seconds (1-10) the

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recipient can view it before the file disappears from the recipient'sdevice.Messagescanonlybeviewedonceandduringtheviewingperiod,the recipientmustmaintain contactwith thedevice's touchscreenor theSnap disappears.The Snapchat applicationis animagemessagingandmultimediamobile applicationcreated byEvan Spiegel,BobbyMurphy, and Reggie Brown when they were students atStanfordUniversity.ThecompanyheadquartersarelocatedinVenice,California.TheprototypeforSnapchatwasstartedbyBrownandSpiegelasaprojectforoneofSpiegel'sclassesatStanford,whereSpiegelwasaproductdesignmajor. Beginning under the name "Picaboo", the idea was for users tocommunicateusing imagesthatwereexplicitlyshort-lived.When, inApril2011,Spiegelfloatedtheproductideainfrontofhisclassasafinalproject,the classmates balked at the thought of temporary photos.Murphywaseventually brought into the project to write the source code for theapplication,andPicaboofirstlaunchedasaniOS-onlyappinJuly2011fromEvan Spiegel's living room (whowas still staying at homewith his fatherwhen not away at school). The application was relaunched two monthslaterunderthenameofSnapchat.Early on, the Snapchat team focused on usability and technical aspects,ratherthanbrandingeffort.However,thisapplicationnowevolvesintoamix of private messaging and public content, including brand networks,publications, and live events such as sports and music. Nevertheless,according to survey studies conducted in March 2016, the personaloriented messaging was still being accessed by users more than thepubliclyofferedcontentthatwasbeingpresented.71%ofuserssurveyedsaid that they preferred the app for its chat, messaging, and imagingservices,versus5%whoalmostexclusivelychosethevariousevents,brandfeatures,andcelebritycontentonadailybasis.24%respondedthat theyaccessed all features equally. However, about three quarters of thosesurveyedwere also familiarwith the brand content and had a favorableopinionofthoseareas.SnapchatreleasedanewupdateonMarch29,2016,withavarietyofnewfeatures.Thereleasereceivednegativefeedbackfrommanyusersbecauseoftheadditionof"autoadvancingstories,"whichtakescontrolawayfromuserswhowant to select the stories theywould like to see, and insteadfeeds all video sequentially (rather than in an "on-demand" setup of

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previous versions). Early on, though, Snapchat focused on building acommunity, and it was time well spent. The platformwas host tomorethan30millionuserswho,accordingtoapitchdeckobtainedbyDigiday,send700millionphotosandvideosaday.Theaverageuserscheckhisorheraccount14timesperday,andaccordingtothecompany,50percentofthoseusersareaged13-17.Thus, forbrands lookingtoconnectwithGenZ,thisisvaluableinfo.

Figure.ThenumberofSnapssentaday

Source:www.digiday.co

Snapchatisprimarilyusedforcreatingmultimediamessagesreferredtoas"snaps";snapscanconsistofaphotoorashortvideo,andcanbeeditedtoincludefiltersandeffects,textcaptions,anddrawings.AfeatureknownasGeofilterswasadded inJuly2014,whichallowsspecialgraphicaloverlaystobeavailableiftheuseriswithinacertaingeographicallocation,suchasa city, event, or destination. The selfie Lens feature, introduced inSeptember2015,allowsuserstoaddreal-timeeffects intotheirsnapsbyusingface detectiontechnology which is activated by long-pressing on afacewithintheviewfinder.Snapchathashomedinontheformer.Everypieceofcontentusersviewistriggeredbypressingandholdingthescreen,meaningthatpeoplehavetoconsciouslyengagewiththecontentwhileusingSnapchat,readthedeck.Whenpeople share, recipientspayattention,knowingcontentcannotbeviewedafewdayslater.ItisdisposabilitythatmakesSnapchatuniqueand,if thecompany is tobebelieved, forcesusers tokeepakeeneyeout forcontent.Evenstories,snapsstrungtogetherinaflipbookofmomentslastjust24hours.Itisanewwaytoforceattentionthatreplicatesrealhumaninteraction, just like in-person conversations. The deck claims stories are

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viewed more than 1 billion times per day, a staggering figure given thecompany recommends brands promoting new Snapchat accounts shouldhavea storywaiting for curiousnew followers.Of further interestwithinthe deck is themetrics Snapchat has devised itself. The first is a Snap’sscore, which is the number of people who have viewed a story, theplatform’s word fora one-way message. Stories are different fromconversations because users cannot respond to them. When strungtogether,thesnapsthatmakeupastorycanbeusedtorevealsomething,like a promo code, and that is where the second metric comes in. Theplatformthenallowsbrandstoseehowmanypeoplehavetakenascreenshotofaparticularsnap.Snapchathasbeengrowingsteadilysince its inception,andnow itseemsthat the service may be onthe verge of a breakthroughinto wideruse.Snapchat users sharenearly 9,000 Snaps every second.According totheNewscredsurvey,54percentusethesitedaily,and32percentusethesitetwo-to-fivetimesaweek.Thisengagementisabigdrawtomarketers,and 30 percent of them are including Snapchat in Super Bowlmarketingcampaigns.

Figure.HowOftenPeopleUseSnapchat

Source:www.adweek.com

However, some of themain ways of these brands will attempt to reachusers—withlivestories,Discovercontent,andbrandedfilters—thatarenot the main reasons users keep coming back to the application. 23

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percentneverengagewith livestories,54percentneverviewcontentonDiscover,and42percentneverusethebrandedfiltersintheirsnaps.Socialmedia is unique for the target segment of the young so that theystayconnected with family and their friends. Currently, Snapchat has 100milliondailyactiveusers in thisworld, the largestactiveusersarewomenaged 13-18 years. The number of women exceeds the number of menusingthesnapchat.youcanseethefactsfromsnapchatbelow.

Figure.PeopleReallyUseSnapchat

Source:www.adweek.com

Interestingly,inashorttimeSnapchat,asanewcomerinsocialnetworkingsites, has managed to achieve popularity, especially in the country. NodoubtthatIndonesiansocietyisasocialite.Thisstatementisstrengthenedby the presence of buildings socialite in Bandung. This building is on theDutch era still colonized Indonesia, precisely in 1895 the building wasnamedConcordiathatisaplacelikearestaurantwithacompleterangeoffacilities, thenwasmadeasabuildingwherethegatheringofplantersorPreanger planters to hold events partying and dancing by the Dutchsociety. On June 29, 1879, this association was officially established asSocieteit Concordia. Knowing the phenomenon of development ofinformation technology in today's society, a significant development andincreasingly popular is social networking, including Snapchat, of severalexplanations as well as data that has researchers shown above, theresearchers are interested in studying how the effect of the userexperienceonthelevelofsatisfactionofitsusersinBandung.Basedontheabove reasons, the researchersare interested in conducting the researchmoredeeplysoastoaccommodateallof them,theresearcherstookthe

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title of "Analysis the Influence Of User Experience Toward UserSatisfaction with Media Social (A Case Study on Snapchat User In

Bandung)"

Literaturereview

TheoryofHumanNeeds

The use of the Snapchats emerged for their social needs (social needs),where the needs for togetherness or communication and interactionamongall otherusers.According toMaslow's theory in Kotler andKeller(2009:203), thereare fivebasicneedsof aperson, it canbe seen in thefigurebelow.

Maslow’sHierarchyofNeeds

Source:Kotler&Keller(2009:203)

InternetAccordingtoDarma(2009:1),theInternetcanbeconnectedviaanetworkandcommunicatewithunlimitedtimeandregion.AccordingtoSugeng(2013:5),theInternetisaglobalnetworkconnectingmillionsofcomputers.Basedontheabovenotions,accordingtoexperts,itcan be concluded that the Internet is a global system that combinesnetworkoncomputersaroundtheworld,enablingusers tocommunicatewithouttheconstraintsoftimeandarearestrictions.

Self-actualization Needs (self-development and realization)

Esteem Needs (self-esteem, recognition, status)

Social Needs (sense of belonging, love)

Safety Needs (security, protection)

Physiological Needs (food, water, shelter)

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SocialNetworkAccordingtoZarella(2011:55-63)Socialnetworkinghasseveralattributes/advancedfeatures,namely:a. Profile Profile is a component of social network users in the form of pages.

Profile page contains information about the user, includingemployment, educationhistory,marital status, address, interests, andhobbies.

b. Connection Themostimportantroleofsocialnetworkingistoconnect(connecting)

twoormorepersons.c. Privatemessage All social networks provide services such as e-mail from personal

messagesender.d.OpenedMessages Theoperedmessagesrefertocommentorwallmassage.Theplaceisin

thecommentsprofilepages,photo,group,event,andbusiness.f. Group Mostsocialnetworkshaveaconceptgroup,whichisagroupofpeople

unitedbycommoninterests.g. Photo Oneoftheattributesofthemostpopularonsocialnetworkingsitesisa

facility for sharing photos. Someone can upload photos / pictures ofhimselfandhis friends,and tagpeople inphotos /pictureswith theirnames.

h. Event Most social networking provides the facility to announce events that

willbeheldbytheusersandinvitefriendstofollow.SocialMediaAccording to Lattiomore (2010: 207), social media is an umbrella thatrefers to the new media using technology to create interaction,participation, and open collaboration in which everyone who has theopportunity to voice ideas, opinions, and experiences through onlinemediaintheformwordsorvisualmaterial.

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UserExperience

Regarding user experience, Lyndon Cerejo as a writer certified userexperience and usability strategies in Rapid Design and Visualizationpractice of Capgemini. He had helped craft the award-winning userexperience for clients includingCoca-Cola,Allstate,GeneralMotors,Wal-Mart,Merrill Lynch, andOffice Depot. Themain field of expertise is theuserexperienceresearchandanalysis, informationarchitectureandrapidprototyping, usability testing, online strategy and marketing. He is acontributing author to Smashing Magazine and Capping IT Off, and co-author ofmarketing.com - adaptations of books aboutmarketing on theInternet from the website marketing.com and has been certified as anexpert in the field of user experience research analysis on the world'sleading consulting firms, namely Capgemini, stated that there are 12elementsintheuserexperienceofmobileaccordingtoresearchconductedin2012asshownbelow.

PictureofElementUserExperience

TheElementsOfTheMobileUserExperience

Source:www.mobile.smashingmagazine.com

UserSatisfactionAccording to Zeithaml and Bitner (2003) in Sumarwan, (2012: 192) thereareseveralfactorsthataffectusersatisfaction,namely:1. Featuresofproductsandservices

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Usersatisfactionoftheproductsorservices issignificantlyaffectedbytheuserevaluationofthefeaturesoftheproductorservice.

2. UserEmotions Emotionscanalsoaffecttheuser'sperceptionoftheproductorservice.

Positive emotions such as happiness, pleasure, and joy will increaseuser satisfaction. In contrast, negative emotions such as sadness,sorrow,regret,andangercanreducethelevelofsatisfaction.

3. Attribution The Cause perceived from an event affects the perception of

satisfaction.When users were surprised by the results of the servicebetter orworse than expected, the users tend to look at the reasonsandtheirreasonstowardratingscanaffectsatisfaction.

4. Perceptionsofreasonablenessandfairness(equityandfairness) Usersatisfactionisalsoaffectedbytheuser'sperceptionofthefairness

andjustice.Forexample,iftheusergetstheserviceorqualityofservicebetter.

5. Anotheruser User satisfaction is influenced by others. For example is reaction of

otherusersafterusingoftheproductorservice.

ResearchFramework

VariabelX:UserExperience1. Functionality2. Informationarchitecture3. Content4. Design5. Userinput6. Mobilecontent7. Usability8. Trustworthiness9. Feedback10. Help11. Social12. Marketing Source:LyndonCerejo(2012)

VariabelY:Satisfaction

1. Featureofproductandservice

2. Emotionalofuser3. Attribution4. Perceptionsof

reasonablenessandfairness

5. AnotheruserSource:ZeithamlandBitner(2003)onSumarwan,(2012:192)

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ResearchMethod

ResearchDesign

Thisresearchusedquantitativeresearchmethodsandfocusedonanalysisthe influence of user experience related to Snapchat user satisfaction inthecityofBandung.Inthisresearch,thedataanalysisisusingsimplelinearregressionanalysistechnique.PopulationusedinthisresearchwascitizenzofBandungwhohaveanduseSnapchataccount.TheAmountofsamplesin this research is385respondentsandtechniqueused isnon-probabilitytechniquewithpurposivesamplingapproach.TypesandSourceofData

Datausedinthisstudyareprimaryandsecondarydata. Inthisstudy,theprimarydatausedaquestionnaire.Thequestionnairewasadatacollectiontool that contains a number of questions or statements that must beanswered by the subjects of the study. The researchers used secondarydata derived from the literature that supports research, namely books,national journals, international journals,previousresearch, thedatawereobtained directly from the official web Snapchat (www. Snapchat.com),andalsoanarticleaccessedfromtheInternetaswellasothersourcesthatareconsideredrelatedtothestudy.

DataCollectionMethod

Data collection activity in this research is important, it relates theavailabilityofthedataneededtoanswertheproblemofresearch,soastoget the correct result. Therefore in the research, data collectionmethodusedisquestionnaire.Thequestionnaire isaddressedtouserofSnapchatto know the perception of the respondent about user experience ofSnapchat.SamplesandSamplingTechnique

According Sugiyono (2012: 81), the sample is "part of the number andcharacteristics possessed by this population." What is learned from thesampleistheconclusionthatwillbeappliedtothepopulation.Therefore,samples taken from the population should be truly representative(representing).Duetotheunknownnumberofpopulation,soheretheresearchersusedtheformulaofBernoullitodeterminethesample,namely:

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! = !1/2!. !!Information:n =Numberofsamplessuspected!1/2! =LimitConfidenceIntervalS =StandardDeviationSampleE =Largedeviation/errororerrorrateestimation

By using a significance level (α) of 5%. Z 1/2 α = 1.96. The standarddeviationof0.5andamaximumerrorratethatmaybeexperienced(E)isnotmorethan5%,then:

0,05 = 1,96. 0,5!

0,05 = 0,98!

! = 0,980,05! = 19,6

! = (19,6)! ! = 384,16From Bernoulli formula of the calculation above, it found that theminimumusablesampleis385respondents.DataResearchVariable

Togettheproperresearch,thevariableisnecessaryforthedatacollectionanddiscussionfocused.Therearetwovariablesinthisstudy,namelyuserexperience as independent variable while customer satisfaction as thedependent variable. As for the parameters investigated are described inthetablebelow.

Table3.1

ResearchVariableVaria

ble

SubVariable Indikators

UserExperience(X)

Functionality 1. Obtain the information through a share momentsuploadedbyafriend

2. CancaptureeverymomentstofriendinrealtimeInformationArchitecture

1. Easyforusingtheexistingsearchbutton2. Easyforgettingfriendsuggestions3. Easyforusingtheexistingsearchbutton

Content 1. Makeinteresttotakevideoandvideofilters

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2. Charming with take photo and image filters onphotos

Design 1. Interestedinthehorizontalorlandscapeview2. Interestedinsnapchatvideoprofilepicture

UserInput 1. Easy to input data (videos, pictures) on mobiledevicesusedinrealtime

2. Easytofindingafriend'snameonthebutton“sendtospecificfriends”

MobileContext

1. SpeedaccesstoSnapchat2. LightingconditionsonSnapchat

Usability 1. Displaycolor,typography,fontsize,andfaceswap2. Sizebuttonplatformstandards,suchasfriendlists,

settings,andalsofindfriendsTrustworthine

ss1. TermsofUse2. PrivacyPolicy

Feedback 1. Noticethelatestversion2. Thereisanoticeofnotification

Help 1. Firstlaunchguide2. Quicktutorial

Social 1. Easytointeractwithanotherpeople2. Easy for communication because everything is

capturedinrealtimeandonlyavailablefor24hoursMarketing 1. Availableforfilterphotosandvideo

2. Availableforfaceswap,emojivideo,geofilter,slowmotionandrewindfilter

Usersatisfaction(Y)

Featuresproductand

service

1. Feeling satisfied with the services given bysnapchatas a social network that the design isprivate

2. Feel Satisfied after using the features provided bythesnapchat

Emotionalusers

1. Beinghappy, cheerful, and excitedwhenusing thesnapchat

2. Feeling happy and pleased if it does not usesnapchat

Atribution 1. Users are satisfied that snapchat successfullymeettheneeds

2. Users feel satisfied for having had the experiencebetterthanothersocialnetworks

EquityandFairness

1. Users feel satisfied for having had the interestingfeaturescomparedtoothersocialnetworking

2. Usersaresatisfiedwiththequalityofthesnapchatbetterthanothersocialnetworks

Otherusers 1. Feeling satisfied with knowing family or friends

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haveasnapchat2. Feelingsatisfiedwithknowingfamilyorfriendsare

activelyusingthesnapchat

DataAnalysisMethods

Dataprocessing techniques used computational programSPSS (StatisticalProgramforSocialScience),astatisticalcomputerprogramthat isabletoprocess statistical data accurately and quickly, into a variety of desiredoutputdecisionmakers.Analysisofthedataisprocessingdataobtainedbyusing formulas or rules that are applicable to the research approach(Arikunto,2006).Dataanalysiswasconductedtothetestthehypothesisinthecontextofdrawingconclusions.CorrelationAnalysis

The Method of correlation analysis aims to indentify and find therelationshipbetweenthevariablesthathavebeenassignedtoresearchtobeabletomeasurethecharacteristicsoftherelationship,andthemeaningand implications of the positive (+) and negative (-) relationship. Themethod used to calculate themagnitude of correlation characteristics ismultivariate correlationmethod, namely the statisticalmethods that candescribeandfindrelationshipbetweenmultiplevariables.The relationship between the variables generating a positive or negativevaluetolimittherelationcoefficientr(PearsonCorrelationcoeficient)isavalueof+1forpositivecorrelationand-1foranegativerelationship.Ifthecorrelationcoefficient is zero, then thevariableshowednocorrelation. Ifthe correlation is +1 or -1 the correlation indicates a perfect positive ornegativecorrelation (Hasan,M. Iqbal,2002),andwhen isdepicted in thescatterdiagram(scatterplot), themeetingpointsoftwovariablesXandYformaline,ifthecorrelationvalueofzerowillbecircular(Sugiyono,2005).

Table3.2InterpretationGuidelineofrValue

Coefficientlevels Levelofrelationship

0,00-0,1990,20-0,3990,40-0,5990,60-0,7990,80-1,00

VerylowLow

ModerateStrong

Verystrong

(Reference:Sugiyono,2010)

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RegressionAnalysis

According to Riduwan & Kuncoro (2012: 83), regression is a process ofestimatingsystematicallyaboutwhatismostlikelytohappeninthefuturebased on past information. Usefulness of regression is to predict thedependent variable (Y) when the independent variable (X) is e known.Simpleregressioncanbeanalyzedforcausalitybasedontheindependentvariable(X)onthedependentvariable(Y).T-testswere performed to test the significance of the constants and thedependent variable (satisfaction). Testing the criteria of regressioncoefficient of user experience variable to the satisfaction of users ofinstagramsocialnetworking.Stepstoperformregressiontestingareasfollows(Martono,2010:253):

1. Calculateadanb a= !!!. !

!

a=( !) !! !( !)( !")! !!!( !)!

b=!. !"! !. !!. !!!( !)!

b=! !"!!"!

2. Maketheregressionequation Measureswithasimpleregressiontestingareasfollows:

Where:Y=Subjectprojecteddependentvariable(satisfaction)X = Independent variable that has particular value as predicted (userexperience)a=ValueconstantthepriceofYifX=0b=Valuedirectionsasadeterminantofforecast(prediction)thatindicatesthevalueoftheincrease(+)ordecrease(-)ofvariableY.

ResearchPurposeandLimitation

ThepurposeofthisresearchistodeterminetheresponseoftheSnapchatuser experience to Snapchat user satisfaction in Bandung, to know thesatisfactionoftheSnapchatusersinthecity,todeterminetheinfluenceofSnapchatUserExperiencetothesatisfactionofSnapchatusers inthecity

Y= a + bX

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andtodeterminehowmuchtheinfluenceoftheSnapchatuserexperienceto user satisfaction in Bandung. By knowing the influence of userexperiencetowardsusersatisfactioninBandungcity,thisresearchcanbeused to another social media to adopt user experience to increase usersatisfactionfortheirbusinessandforresearchontheexplanationofwhyuser experience can make user satisfaction in social media expeciallySnapchat. The influence of user experience toward user satisfaction insocial media expecially Snapchat user in Bandung city is conducted as abasis to increase user satisfaction and can be a reference for the socialmediainarelatedfield.

References

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Arikunto,Suharsimi2005,ManagementResearch,RinekaCipta,Jakarta.Better,Elyse.(2015).7SnapchatTipsandTricksYouProbablyHadNoClue

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Cerejo, Lyndon. (2012). The Elements of the Mobile User Experience.[online].http://mobile.smashingmagazine.com/2012/07/12/elements-mobile-user-experience/

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Gross, Julia.,& Shuridan Lutie. (2012).Web Scale discovery: The UserExperience. [Online].http://www.emeraldinsight.com/journals.htm?articleid=1926102

Hastyadi Widiartanto, Yoga. (2012). Today's Internet is loved by adults.[Online].http://techno.okezone.com/read/2012/06/26/55/654002/internet-masa-kini-digandrungi-orang-tua

Hearthwood,Maximillian. (2011).TheDigitalMediaAndHabitsAttitudesOf South East Asian Consumers. [Online]http://www.scribd.com/doc/71370794/The-digital-media-and-habits-attitudes-of-South-East-Asian-Consumers

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JesseJames,Garret.(2011).TheElementsOfUserExperience.Barkley,CA:Newriders.

Keller, Kotler. (2009).MarketingManagement.Pearson PrenticeHall.13thEdition.

Lattimore, Dan. et.al. (2010). Public Relations ProfesidanPraktik(3rded).Jakarta:Salemba

Humanika.Maulana, Rizal. (2013). 20 Countries World's Largest Internet

User.[Online].http://m.news.viva.co.id/news/read/405486-20-negara-pengguna-internet-terbesar-di-dunia

Morrison, Kimberlee. (2016). How People Are Really Using Snapchat.[Online]. http://www.adweek.com/socialtimes/how-are-people-really-using-snapchat-infographic/633305

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Oliveria,Rodrigode.,Oliver,Nunia.,&CherubiniMauro. (2012). Influenceof U sability on Customer Satisfaction: A case study On MobilePhone Service. [Online].http://webcache.googleusercontent.com/search?q=cache:S-ISD9h1laYJ:ceur-ws.org/Vol-922/paper4.pdf+&cd=1&hl=en&ct=clnk

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Zarella, Dan. (2010). The Social Media Marketing Book (1sted). Jakarta:SerambiIlmuSemesta.

Zeithaml,ValarieA.et.al.(2009).ServiceMarketing.NewYork:McGraw-Hill.

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ANALYSISPREFERENCECUSTOMER&BRANDIMAGETOWARD

CUSTOMERLOYALITY

(SURVEYTOREPURCHASINGBEHAVIORBETWEENHONDA&TOYOTA

CAR)INBANDUNG

RifanAthariq,StudentID.120820150552IqbalRasyidRidha,StudentID.120820150553

MasterOfManagementProgram,FacultyOfEconomics,AndBusinessUniversitasPadjadjaran(MmFebUnpad)

ResearchBackground

Automotive car industry have a highly growth in Java island, therefore,Bandungasthe3rd largestcity inJava island impactedbythisautomotivehighly growth.This growth caused by the fact thatmost of the people inBandungisalreadycapabletobuyacar.Andsoforthecarmanufactures,this highly growth market lead them to have a strong and a tidecompetition in between to fulfill themarket of car demands. The detailnumberofgrowthcouldbelookingontablebelow.

Table.1GrowthCarSalesInIndonesia

Sources:Gaikindo.com

Ascanbeseeninthetableabove,ToyotaandHondabrandstandtogetherasmarket leaders in Indonesia.Asthemarket leaders, thecompanyhavetomaintain their market share not only by producing and introducing anewvariantofcarbutalsotheyhavetomakeastrategicplansabouthowtheywillintroducetheirproducts.

PassangersCars.

2008 7.489.8522009 7.910.4072010 8.891.0412011 9.548.8662012 10.432.259

Years

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Sothisresearchwillmeasuredtherelationshipbeetwenbrandimageandcustomer reference toward re-purchasing behavior in Bandung City. Thisresearchalsoexpectedtorevealthecustomers’pointofviewtowardsthistwobigcarcompany,sothecarcompanies,especiallyToyotaandHondawill have insight to make their next strategy plans to maintain or evenexpandthecustomerssatisfactionslevel.

LiteratureReview

CustomerReferenceCustomer reference marketing could be considered (as) one way ofleveraging and capturing benefits from customer relationships (SawhneyandZabin,2002)byusingcustomer relationshipsanddeliveredcustomersolutions in the company’s marketing efforts. The practices of customerreference marketing could be categorized as external and internal(Salminen and Möller, 2006). In the former case, the supplier signalsreferences to potential buyers and other stakeholders. In the latter, thesupplierusescustomerreferenceinternallythoughvariouspractices,suchasinternalsuccessstoriesandtheuseofacustomer-referencedatabasetogaininternaloutcomes,suchassalesforcetrainingandbettertargetingofbiddingefforts(SalminenandMöller,2006).BrandImageWithin the two perspective, corporation and consumers, fromwhich thebrandcanbedefined(deChermatonyandDall’Olmo,1997;1998)emergetwo key concept; brand identity and brand image. (Aaer andJoachismshaler,2000)definebrandidentity(as)“asetofbrandassociationsthatthebrandstrategistaspirestocreateormaintain”.Brandidentityhasto consider multiple aspects, such as the desired positioning and thepersonality(deChernatony,1994),whichreattenuatebytheorganizationalculture and the relationships staff build with stakeholders. Keller (1993)refer to the image of the brand as aconcept that is assumed by thecustomers due to subjective reasons and their own personalemotions.Brandimageisalsoreferredtoasthecustomer'sperceptionofeitherthereason or rational basis or through more emotions towards a specificbrand (Malhotra, 2010; Cannon,Perreault, & McCarthy, 2009; Assael,2004).

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CustomerLoyaltyThere is recognitionofneed for greater knowledgeandunderstanding inrelation to customer loyalty (Knox and Walker, 2001). This results fromuncertainly that exist over the meaning and measurement of this area(Oliver, 1997; 1999;Hart et al, 1999).Most analysisof loyaltyhavebeenfrom a behavioral perspective, excluding attitudinal type data andconcentrating on a deterministic perspective using stochastic models(Tellis, 1988; Ehrenberg, 1998; Ehrenberg and Goodhardt, 2000). Aproblemassociatedwiththistypeofanalysis,isthatloyaltyisaboutmuchmorethanjustrepeatpurchase;someonewhokeepsbuyingmaybedoingsooutofinertia,indifferenceorexitbarriersratherthanloyalty(Reichheld,2003). Recent studies have concentrated on the relationship betweencustomerloyaltyandquality,satisfaction(Selnes,1993;MittalandLasser,1998;Oliver,1999;Martensenetal.,2000;McDougallandlevesque,2000).AccordingtoKotlerandArmstrong(2014)“purchasedecisionisaproblemsolving activity by individuals in the selection of an appropriatealternative”.Repurchase intentions are usually identified with brand commitment.However, there is an important difference between them. Brandcommitment means a relationship similar to a friendship a consumerdevelopsforthebrand.Schiffman&Kanuk(2010);Hawkins,Best&Coney(2004)andAssael(2004)mentionedthattheconsumermadethepurchasedecisionisinfluencedbyseveralmeasurements,namely(1)themeasurementofculture,whichhasthemostinfluenceandthemostextensiveinthebehaviorofconsumerssothatmarketers need to understand the influence of culture, sub-culture,and social classof consumers; (2) socialmeasurement,whichneed tobeconsideredwhendesigningamarketingstrategybecausethesefactorscanaffectconsumerresponses; (3)personalmeasurements,whichconsistsofthe age and stage of life cycleoccupation, economic situation, lifestyle,personality,andself-conceptaffects theconsumeronwhat ispurchased;and (4) psychological measurement, include motivation, perception,learningandbeliefsandattitudesalsoinfluencetheselectionofconsumerpurchases.

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Researchframework:

ResearchMethodsandHypothesis

Theresearchwillusesurveyresearchasatoolwhilethescopeofresearchonly focused in Bandung and especially for customers of Toyota andHonda.The researcherswill give some question from the quitionarewhich havepurpose to measure the implication of variable customer reference andbrand image towards customer re-purchasing decision. In order tomakethisdataisreliableandcomprehensivetheresearchershavesomecriteriafortherespondentasdetailedbelow:1. The respondent had an experience to use bothof toyota andhonda

car.2. Therespondenthadanexperienceboughtoneofbrandorboth3. Therespondenthadanexperiencetohaveanafterservice fromone

ofbrandorboth.VariablesandData Variablesthatwillbeusedinthisresearcharecustomerreferences,brandimage,repurchasingdecesionbehaviorandcustomerloyality.Indicatorforeachvariablewillbeinformonbelow:1. VariableIndependent

a. X1 = Customer references (Source Information, Type ofInfomation,Experiance)

b. X2=BrandImage(CorporateImage,UserImage,ProdukImage)2. VariableDependent

a. Y=Re-pruchasingdecesionbehavior(Quality,AfterSales,Pricing)b. Z=LoyalityCustomers(RepeatBuyer,AgentofBrand)

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Thedata thatwill beused in this research is thedatagathered from thequestionnaire. Thequestionnaire itselfwill begiven to several customerswhoalreadyusedToyotaandHondacars.The researcherswilluseLikertscaleasthemeasuringscaletoevaluatetheanswersfromallrespondents.Malhorta& Birks (2006) said that Likert scale can be used to measuresomeone’s or group’s gesture, opinion, and perception about aphenomenonand canbemeasuredquantitatively.Writerswill use Likertscalewith5pointrating,whichdetailedlikebelow:

Table.2ParameterofQuistionare

First, the researcherswill calculate respondent’sanswer into theaveragescoremean fromtheentirequestion inquestionnaire.The interpretationof themeanwill followthe intervalwhich ismentioned inTable3.Then,eachof indicators from thevariables (customer references,brand image,repurchasingdecisionbehavior and customer loyality)will be interpretedin mean and the category will follow Table 3. After all the criterion isinterpreted, the researchers will be able to consider the respondent’sagreeabilityaboutthevariables.

Table3.Respondents’AnswerInterpretationfromMeanCalculatedInterval Category

4,2<Mean=<5,0 StronglyAgree3,4<Mean=<4,2 Agree2,6<Mean=<3,4 Neutral1,8<Mean=<2,6 Disagree1,0<Mean=<1,8 StronglyDisagree

The data then is verified by the statistics by using SPSS. The researcherswill use simple regression technique to know whether knowledgemanagement has a relationship with competitive advantages andorganizationalperformance.Toknowaboutthecorrelation,symbolizedby

159

“r”, theresearcherswillusecorrelationanalysis,whichmeasuredfrom-1to 1. The strength of the correlation is shown in Table 4. Then, anothercalculation is thedetermination coefficient to knowabouthowgreat thecorrelation beetwen variable independent towards varible dependent. Inthe final stage, to test the hypothesis, the researcherswill use t studenttest.

Table4.CorrelationStrengthInterpretationCoefficientInterval RelationshipStrength

0,00-0,199 VeryLow0,20-0,399 Low0,40-0,599 Intermediate0,60-0,799 High0,80-1,000 VeryHigh

HypothesisFrom the explanation above, the researchers develop the hypothesis,whichare:1. Customerreferenceshaveanimpactinre-purcahsingdecisionbehavior

towardscustomerloyalityinBandungforToyotaandHondaCarBrand.2. Customerreferenceshaveanimpactinre-purcahsingdecisionbehavior

towardscustomerloyalityinBandungforToyotaandHondaCarBrand.

ResearchPurpose,LimitationandOriginality/Value

This researchpurpose is todeterminehowmuchthe impactofcustomerreferencesandbrandimagegivetowardscustomerrepurchasingdecisionfor Toyota and Honda companies. This research limits the scope of thestudyonlyinBandung.Thevalueortheoutputfromthisresearchisthattheresearchcouldgiveasuggestiontobothofcarcompanies;ToyotaandHonda,especially inBandungareaaboutpositioningand judgmentbrandimage & customer reference from customers’ point of view. This inputhopefully will help both companies to make a good strategic move toobtainandmaintaintheircustomers.

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References

AaerandJoachismshaler,(2000),BrandLeaderShip,Thebrandrelationshipspectrum:Thekeytothebrandarchitecturechallenge

DeChernatonyandDall'olmo,(1997-1998),ATheoryofMarketing:OutlineofaSocialSystemsPerspective.

De Chernatony, (1994), Creating Powerful Brands, Brandmanagementthrough narrowing the gap betweenbrandidentityandbrandreputation

Dick, A., Basu, K. (1994), “Customer loyalty: towards an integratedframework”, Journal of the Academy ofMarketing Science, Vol.22,No.2,pp.99-113.

Ehrenberg andGoodhardt,( 2000)TheRoutledgeCompanion to ConsumerBehavior Analysis,Thebehavioraleconomics ofconsumerbrandchoice:Patternsofreinforcementandutilitymaximization

Griffin, J. (1997).CustomerLoyalty–HowtoEarn It,HowtoKeep It,SanFrancisco:Jossey-BassPublishers.

KnoxandWalker,(2001),MeasuringandManagingBrandLoyalty,JournalofStrategicMarketing

Kotler,Philip.&Armstrong,G.(2014).PrinciplesofMarketing.15thEdition.UnitedStatesofAmerica:Pearson.

Malhorta&Birks,(2006) Marketing Research, Internationl Journal ofEducationManagemet

Sawhney and Zabin, (2002), The Sustainable Global Marketplace, Therelationship between buyer and a B2B e-marketplace:Cooperationdeterminantsinanelectronicmarketcontex

Schiffman, L. G., & Kanuk, L. L. (2010). Consumer Behavior. New Jersey:Pearson-PrenticeHall.

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THEROLEOFBRANDAWARENESSANDBRANDIMAGETOWARD

CUSTOMERPURCHASEDECISIONONJAPANESE’SLOWCOSTGREENCAR

ININDONESIA

(CASESTUDYINTOYOTAMOTORINDONESIA)

AgahariAdiwinata,StudentID.120820150521SamuelBerliando,StudentID.120820150538

MasterofManagementProgram,FacultyofEconomics,andBussinessUniversitasPadjadjaran(MMFEBUNPAD)

RESEARCHBACKGROUND

In the current era of globalization in which the value of nature's lifeconsumerismcontinuestoincreaseinlinewiththerisinglivingstandards,both in the community of developing countries especially in developedcountries. A vehicle is no longer a luxury, but rather supporting thelifestyle. Marketing vehicles become more rapidly, so that some of theworld'sautomotivecompaniesareracingtobeabletoexpand itsmarketshare in order to expand its trade hegemony in Indonesia, for exampleJapanesemanufacturers.Several Japanese manufacturers have been more than 25 years in theautomotive world enlivening the Asia-Pacific region. Japan is one of theadvancedcountries in theworldwhichalsopositioning itself as themostadvancedcountriesinAsia.StepsindustrializationfromthebeginninguntilnowrunJapanhasproveditssuccessbybecomingoneoftheindustrializedcountriesintheworld,witheconomicgrowthgoingforward.Japanandthecountries alike rely on the industrial sector as a pillar of the economy infavor of the development and operational performance of the countrybecause basically Japan has a natural resource that is relativelyminimal.Throughastrategyof improvingthequalityofhumanresourcestoahighquality, both countries are able to perform brilliantly as one of theadvancedcountriesintheworld.IndonesiawaschosenasanobjectofinvestmentforJapanbecauseinside,therearephenomenaassociatedwiththeautomotiveworldthatisuniquefor further discussion. Among the characteristics of a pluralistic state, aswellasalargequantityofpopulationswithrelativelyrapidratesofgrowth,it becomes a potential market share for the marketing of automotive

162

products along with increased economic standards for the Indonesianpeople.

Table1TotalCarSalesinIndonesiabetween2010-2015Year Units2010 764.7102011 893.4202012 1.16.2302013 1.226.1992014 1.208.0192015 1.013.291

Source:Processedfromgaikindo.or.idIn 2011, Indonesian government launched a new policy in automotiveindustry called Low Cost Green Car. All people think that this is such apositive policy, because it will give a lot of benefits for Indonesia andespecially for automotive lovers. There are some reasons why thegovernmentmakethispolicy,theyare:1. Goverment's ambition is to push the carbon emission, where the

goverments need an eco-friendly car which have an efficient fuelconsumptionandhaveafurtherdistancethannothercommoncars.

2. Increasing the investment and jobs. One of the conditions forautomotive industrywhowantsto followthisnewpolicy is that theyshouldbuildanewfactorythatautomaticallywillopenupnewjobs.

3. Buildanautomotivepartsindustry,wherethetermsandconditionfortheautomotive industrywhowants to follow thispolicyneed tousehispartsfromIndonesia(locally).

4. Tofaceafreetradepolicy.ThisLCGCprogramistoovercomethefreetrade policy, especially in the automotive industry because othercountrieshavecreatedvehicleswith the sameconcepts, sowith thispolicy, Indonesia is expected to create new inovasion and not be amarketforneighbourcountries.

AfterthispolicyhavebeenlaunchedbytheIndonesianGovernmentinJuly2013, the government makes regulation that must be obeyed byautomotive industrywhowantstoproduceLCGCvehicles,suchasruleoffuel consumption of vehicle with 980-1.200 cylinder capacity should atleastconsume20km/literand fordieselvehiclewithup to1.500cylindercapacityshouldatleastconsume20km/liter.Anotherruleisforthetypeof

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fuel, the LCGC vehicle should useResearch Octane Number (RON) 92. ItmeansthatLCGCisnotonlycheapinprices,butthemostimportantthingis saving the fuel consumption. Therefore, the specification od LCGCvehicleisusedsmallmachinecapacitybetween1.000–1.200cc.Andalsofor the fuel consumption must meet the specifications 1 liter for 20kilometers, and for the 1.000 cc vehicles, the fuel consumption is moreefficientthatis1literfor22kilometers.Other technical rules are about turning radius and ground clearance.Furthermore,alsosettherulesforadditionalbrands,model,andlogothatreflectIndonesia,andalsorulesaboutpriceofLCGCvehiclethatisupto95millionrupiahs. In this regulation, thesalespricecanbeadjusted if thereare changes in some condition or economic indicators such as inflation,currency,and/orrawmaterials.Besidethatanotherregulationisforusingautomatic transmission technology and/or passenger seat. Priceadjustmentforusingautomatictransmissiontechnologyisupto15%,andforpassengerseattechnologyisupto10%.ThepresenceofToyotaproductsinthisLCGCmarketbringabadnewsforhis competitors because Toyota is known as market leader in theautomotive industry. In this tablebelow, there is a total salesof LCGC in2014:

Table2TotalofLCGCSalesin2014Ratings Brand Unit

1 ToyotaAgya 67.0742 DaihatsuAyla 40.7753 HondaBrio 26.6834 DatsunGo+ 17.7875 SuzukiWagonR 17.0686 DatsunGoPanca 2.733

Source:processedfromwww.otosentrum.comAccording to the Table 2, we can see that Toyota Agya is on the top inmarketshareofLCGC.Toyotaproduct that includes in thisLCGCpolicy isToyota Agya which this product has passed the verification by IndustryMinisterof Indonesia.With this5passenger seatcar,ToyotacanmakealotofprofitintheautomotivemarketinIndonesia.Inthistablebelow,wecanseetheincreasingofToyotaAgyaSalesbetween2013-2015.

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Table3TotalofToyotaAgyaSalesbetween2013-2015

Years Units2013 22.3762014 67.0742015 56.583

Source:Processedfromwww.otosentrum.comAccordingtoTable3,wecanseethatToyotaAgyasalesfrom2013to2014isincreasing.Thisisaprovethat,mathematicallyToyotasuccedsinsellingAgya in Indonesia.Although in2015,theAgyasalesdecreasedfrom2014to2015,ToyotastillcanmakeahugenumberofsellingAgya.Thisprovesthatpeoplereallybelieveintheproduct,especiallyToyotaAgya.There are several factors that influence a person in making purchasedecisionssuchasBrandAwarenessandBrand Image.BrandAwareness isthe consumer’s ability to recognize and recall that the brand is a part ofparticular product category (Aaker and McLoughlin, 2010). Meanwhile,based on Kotler and Keller (2012), brand awareness is the strength of abrand in the consumer’s memory-how easy it is for the consumer toremember a brand. So, when someone wants to buy goods or services,he/shewillchoosetheproductthatfirstcameoutfromher/hismemory.Brand Image is built by creating an image of a product. Consumers arewilling topayhigherandconsidereddifferentbecauseof thisbrandemitcertain associations and imagery. (Supranto, 2011) defines the notion ofbrand image iswhat consumers think of feelwhen they hear or see thename of a brand or essentially what consumer have learned about thebrand. (AccordingtoDeChernatony,2003) in (FandyTjiptono,2008) thatthebrandimageorbrandimageisasetofassociationsthatthebrandsisperceived by the individual at all times, as a result of direct or indirectexperienceonabrand.Ofnotionscanbeconcludedthatthebrandimageisathoughtofaproductorservice.

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LITERATUREREVIEW

Brand

Everyproducthas theirbrand.Brand is important inmarketingactivities,becausewiththebrand,wecanintroduceourproducttocustomereasilyandgivemorevaluetotheproduct. (Kotler2003)brand isaname,term,symbol,design,or thecombined,which identifies theproductsellersanddifferentiate it from competitors' products. Brand consists of severalcomponent(KotlerandKeller2009):1. Brandname,isapartofbrandwhichisspoken2. Brandsign, isapartofbrandwhich iscanberecognized,butcannot

bespoken,suchassymbol,design,letter,orspecialcolour.3. Trademark,isapartofbrandwhichisprotectedbylaw4. Copyright,isaprivilegewhichisprotectedbylawtoproduce,publish,

orsellpapers,music,orart.Accordingto(KotlerandKeller2009),brandhaveseveralbenefits:1. Simplifytohandlingandsearchaproduct.2. Helpedorganizetheinventoriesandaccountingrecords3. Offerslegalprotectiontocompanyforthefeaturesortheuniqueness

product.

BrandAwareness

BrandAwarenessistheconsumer’sabilitytorecognizeandrecallthatthebrand is a part of particular product category (Aaker and McLoughlin,2010).BasedonKotlerandKeller(2012),brandawarenessisthestrengthofabrand in theconsumer’smemory-howeasy it is for theconsumer toremember a brand. Besides that, according to Kotler and Keller (2006),brand awareness is a potential consumer’s ability to recognize and recallthat a brand is a part of particular product category. The level of brandawarenessinasequencecanbedescribedasapyramidlikethis

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Figure1Pyramidofbrandawareness

1. UnawareBrand

This is the lowest level in the pyramid of brand awareness, whereconsumersarenotawareoftheexistenceofabrand.

2. BrandRecognitionThisisaminimumlevelofbrandawareness.Thisisimportantwhenabuyerselectsabrand.

3. BrandRecallRecallofabrandisbasedonaperson’srequesttomentionaspecificbrandinaclassofproducts.Thisistermedrecallwithoutassistance.

4. TopofMindIfsomeone isaskeddirectlywithoutassistanceandhecanrecallandmentionthenameofthebrand,thebrandmostmentionedfirstistopofmind.Inotherwords,thebrandisamajorbrandofdifferentbrandsthatexistinthemindsofconsumers.

Tofindouthowmuchinformationthatcanberecalled,accordingtoAakerand McLoughlin (2010), there are three ways to do the measurement,namely:1. Recall

Inthispoint,apersoncanreproduce(oralandwritten)materialwhichhasbeengiventoher/him.Thepersonhastomentionaroundhim/herandcanbecapturedbysensory.

TopofMind

BrandRecall

BrandRecognition

Unwareofabrand

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2. RecognitionA person is asked to identify againwhatmaterial he/she got. In thispoint, the person has a chance to select the right answer from thegivenalternativechoices.

3. SavingsA person is asked to earn a certainmaterial and howmuch time heneedstobeablememorizethematerialwithout

Every people have a memory that affected by a stimulus. The stimulusconsists of two types, namely, visual and auditory, in which differentmemories are left in each person. In termsof answering the question ofwhichoneismorememorable-visualorauditorystimulus,thereareeightstepsinprocessinganadvertisement,theyare:1. Exposetoadvertisement2. Attendtoit3. Comprehendadvertisingmessage4. Evaluateit-theconsumercouldlikeordislike5. Changeamessagetobealong-runmemory6. Aninformationisprocessedforthefuture7. Theconsumerdecideswhichbrandwillbebought8. Theconsumerpurchasestheselectedchoice

BrandImage

Brand Image built to create an image of a product/services. Consumerswant to pay higher because of this brand emit certain associations andimagery. Actually, the brand image can be constructed in three ways,namely feature-based, user-imagery, or through advertising. A brand canbe rated higher by adding product features that could be generating animage or association or by raise and establish an emotional bond withconsumers.User-imageryisusedwhencreatingabrandimagebyfocusingonwhoisusingthebrand.Characteristicsofthebrandturnintothevalueof the brand in the eyes of consumers. Image of product and the brandassociative meanings are communicated by advertising and otherpromotionalmedia,includingpublicrelationsandeventsponsorships.Supranto defines the notion of brand image is what people think whentheyhearorseethenameofabrandoressentiallywhatconsumerhavelearned about the brand. According to De Chernatony (Fandy Tjiptono,2008) the brand image is a set of associations that the brands areperceived by the individual at all times, as a result of direct or indirectexperienceonabrand.Ofnotionscanbeconcludedthatthebrandimage

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isathoughtofaproductorservice.Kapfefercitedby(SonnySumarwan,etal,2011) conveyamodel thatopenshorizons.Hestated thatmostof thebrandidentitycanbepresentedinsixdimensions,eachdimensionmustbemanagedtoinfluencethebrandimagetocustomers.Thesesixdimensionsare:1. Physical namely the appearance of the brand in terms of the name,

thecolorofthelogoandpackagingchosen.2. Reflection is the imageof thetargetconsumersas reflected inbrand

communication, for example, cola-cola ads reflects the young andeventhoughthemarketismuchlarger.

3. Thelinkageissulkingonhowbrandsandconsumersarelookingforarelationship. Experienced brands such as virgin positionedhimself asthe friend of the customer. Aspirational brands like Louis Vuittoninvitingcustomerstojointheexclusiveclub.

4. The personality is the brand. For example, IBM’s personality is aseriousprofessionalwhileAppleisayoungandcreative.

5. Culture is the background and values of the brand, for example,MercedesdescribethevaluesGermanyandNikeaccentuatetraitsofindividualism.

6. Self-image ishowcustomersseethemselves inrelationtothebrand.Forexample,someonewhobuysfromthebodyshopwillseehimhaveaconcernfortheenvironmentbychoosingthisbrand.Self-imageisabrandstylehaschangedlittlebylittle

CostumerPurchaseDecision

The consumer buying decision process is influenced by several factors.According to Kotler (2007:214), consumerpurchase canbe influencedbythe cultural, social, personal, and psychological factors, as shown in thefigurebelow.

Table4FactorsinfluencingConsumerBehaviorAccordingtoKotler.

Cultural Social Personal Psychology

Culture Group Age,LifeCycle, Motivation Reference Job,Economic PerceptionSubculture Family Condition,Life Learning Roleand Style,Personality, Beliefsand

SocialClass Status SelfConcept AttitudeSource:Kotler(2007:214)

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1. Cultural

Cultural factors are factors that influence beliefs, values, and habitseering thecomponent include.Thecomponents include: culture, isacollectionofbasicvalues,perceptions,desires,andbehaviorslearnedby someone from the family members of the community and otherimportant institutions.Subculture isagroup thathas thesamevaluesystem based on life experiences and situations. This subcultureconsistsofnationality,religion,race,andgeographicregionandsocialclass,adivisionorarelativelyhomogeneousgroupandremainedinasociety,whichisarrangedhierarchicallyanditsmembershavevalues,interest,andsimilarbehaviors.

2. SocialSocial factors are influenced by those around us. The componentsinclude:Referencegroup,someoneiscomposedofallthegroupswhohas a direct or indirect effect on the person’s attitude or behavior.Family, the members of the family become the primary referencegroupofthemostinfluential.Theroleandstatusarethepositionsofapersonor people in a group, the role consist of activity expectedbytheirsurroundings.Eachrolecarriesstatusreflectingtheappreciationofagivensociety.

3. PersonalPersonal factors are factors that are influenced by personalcharacteristics include: age and stage of life cycle: the purchase ofgoodsandservicesvaryaccordingtotheneedsordesiresthroughouthis life. Jobs and economic environment work also affects theconsumptionpatternthatcorrespondstoincome,expenditure

RESEARCHMETHODS

ResearchDesign

The type of this research is descriptive. Researchers explain the brandimage and brand awareness which is owned by Toyota from varioussources that affect customers using Toyota cars especially category lowcostgreencar.DataCollection

Thedatainthisresearcharetakenfrommanysources.Thefirstsourceisofficial statistics. Official statistics are statistics collected by government

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andtheirvariousagencies,bureaus,anddepartment.Thereviewsofthesestatistics are useful to researchers because they are an easily obtainableandcomprehensivesourceofinformationthatusuallycoverslongperiodsof time. The second source is technical reports. Technical reports areaccountsofworkdoneon researchprojects. Theyarewritten toprovideresearch results to colleagues, research institutions, governments, andother interested researchers. The third source is scholarly journals.Scholarly journals generally contain reports of origin research orexperimentationwrittenbyexpertsinspecificfields.DataAnalysisTechnique

Inthisresearch,thedatacollectedareanalyzedbyreviewing,interpretingandcross-analyzing.Analyzingdataallowthewritersofthisresearchtogetabetterunderstandingofthetopic.Analysisofthedatagivesthewritersof this paper the information that they need to make judgement,recommend areas of intervention, and design follow-up studies. Crossanalyzingdatawillalsohelpthewritersofthispaperunderstandnotonlywhat is happening in the topic discussed but also why it is happening(McCaston,2005)

RESEARCHPURPOSE,LIMITATIONANDORIGINALITY

This paper determines the strength of the brand awareness and brandimagewhichisownedbyToyotaMotorIndonesia.TheresultofthispapercanbeusedasrecommendationsforToyotainIndonesia.ThelimitationofthispaperisthispaperconductedattheToyotainIndonesia.ThispaperiswrittenforthebenefitsasarecommendationforToyotaMotorIndonesiainIndonesiaandallpartieswhomaybeinterestedinBrandAwarenessandBrandImagesuchascompany,businesspeople,academia,students.

REFERENCES

Aaker, D. A., & McLoughlin, D. 2010. Strategic Marketing Management:

GlobalPerspective.USA: JohnWilly&Sons IncJ. Supranto,2011,StatisticalTheoryandApplications,Erlangga,Jakarta

Kotler, P., & Keller, K. L. 2003. Marketing Management 14th ed. NewJersey:PrenticeHall

Kotler, P., & Keller, K. L. 2006. Marketing Management 14th ed. NewJersey:PrenticeHall

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Kotler, Philip. 2007. Marketing Management, Planning Analysis,Controlling, Indonesian Edition. Jakarta: Prentice Hall, SalembaEmpat

Kotler, Philip and Kevin L. Keller. 2009). Marketing Management,Translation: Bob Sabran. 13th Edition Jilid 1 dan 2, Publisher:Erlangga

Kotler, P., & Keller, K. L. 2012. Marketing Management 14th ed. NewJersey:PrenticeHall.

McCaston, M. Katherine. 2005. Tips for Collecting, Reviewing, andAnalyzing Secondary Data. Partnership & Household LivelihoodSecurityUnit.

Sumarwan, Ujang dkk., 2011. Marketing and Consumer Research:Guidelines for Research and Studies: Satisfaction, BuyingBehavior, Lifestyle, Loyalty and Risk Perception, PT Penerbit IPBPress,Bogor

Tjiptono, Fandy, 2008. Service Management Achieving Excellent Service.ANDI,Yogyakarta

http://www.gaikindo.or.id/data-by-category-2016/ (accesed on10/05/2016)

http://www.otosentrum.com/agya(accesedon10/05/2016)

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EMPIRICALANALYSISONISLAMICBANKEFFICIENCYININDONESIA:A

DATAENVELOPMENTANALYSISAPPROACH

Selpiyani,StudentID.120820150511SiskeAnani,StudentID.120820150522

ResearchBackground

Efficiencycanbetranslatedastheabilityofanorganizationtoperformanactivitywellby calculating the ratioofoutputs to inputs. Inotherwords,efficiencyisthewaytouseminimuminputstoproducemaximumoutputs.Efficiency is widely used to measure the performance of a particularbusinessunitinacompanyincludingbanks.Abankisconsideredefficientifthebankhaslowcostsbutobtainsahighnetprofit.Efficiencyinthebankingsectorisoneofperformanceparametersthatisquitepopularandiswidelyusedbecauseit istheanswertothedifficultprocessofassessingbankingperformance.Themonetarycrisisthatoccurredin1998,whichdidnotgiveanynegativeimpactsto Islamic-based financial institutions,has encouraged people tocreateIslamicBanks.

Since IslamicBanking (BUS)was firstestablished in Indonesiauntil today,Islamicbanksmustmanage tocompetewithotherconventional financialinstitutions. There are twelve Islamic Banksso far in Indonesia. Islamicbanks have experienced consistent and gradual growth each year.TotalprofitmadebyIslamicbanksisprojectedtoreach2.6trillionrupiahbytheendof2015. Although theprofitmadeby IslamicBanks increasedmorethan the level reached in 2014, the profitability of the Islamic banksindustryinIndonesiaisstillunderthelevelreachedin2013.Thefactorthatcausedthedeclinedearningwasthehigherprovisioncostsandoperationalincome that did not grow significantly. According to DinnoIndiano,theChairmanofIndonesiaBusinessDevelopmentofIslamicbanksAssociation(Asbisindo), the micro business of Islamic banking has experiencedstagnant growth in the last two years. Similarly, until now the growthofloandistributionofIslamicbankshasonlyreachedsingledigits.

At the end of 2015, Asbisindo projected that the total credit of Islamicbankswouldgrow6.1%.IntheBanksBusinessPlanof2015,theFinancial

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ServicesAuthority(FSA)recordedthataverageIslamicbankstargetedtheirfinancingat25.8%.However,inthesecondsemester(inthemiddleoftheyear), this Bank Business Planwas revised to less than 20%. Consideringthis new revision, Dinno admitted that Asbisindo had expected thatfinancingwouldgrowtodoubledigitlevels,muchasitwassometimeago.Tomeasure the efficiency, DEAwill be chosen for this research becauseDEAdoesnot require theresearcher todeterminethe functional formordistribution form of an error.DEA is more flexible than the parametricapproach.Moreover, the reason for usingDEA is that it has beenwidelyusedinmeasuringbankefficiencyinmanycountries.Apartfromtheabovereasons,DEAischosenbecauseitcanbeappliedinmulti-inputandmulti-outputvariables.

From theexplanationabove, the researcher is interested in conductingaresearch entitled: "Empirical Analysis on Efficiency Islamic Bank inIndonesia: A Data Envelopment Analysis Approach". This research isexpectedtobecomeoneoftheconsiderationsindeterminingpolicyinthegrowth of Islamic banks in Indonesia, in particularand Islamic banking intheworldingeneral.

Researchquestion

ThePurposeandlimitationoftheproblem:

Inputvariables OutputVariables1. TotalAssets2. TotalFinancing3. TotalfundsoftheThirdParty4. TotalOperatingCosts5. OtherBanksTotalLoans6. NonPerformingLoan(NPF)

1. OperatingIncome2. Non-OperatingIncome3. ROA4. ROE

The objective of this study is to measure the level of Islamic Banksefficiency in Indonesia. This study is expected to be a reference forimproving Islamic bankperformance in Indonesia. The Issues thatwill beaddressedinthisstudyarerelatedtotheinputandoutputvariablesofthestudy.

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InputVariables:

1.Asset

Accordingtothebook"StrategiManajemenBisnisPerbankan“(“Strategyof Banking Business Management") written by the authorKomarrudinSastradipoera, the strategy and operational managementactivities of a bank is indicated by the bank’s balance sheet and in thechanging balance. Liability shows the strategy and management activitythatisrelatedtothesourceincollectingfunds.Meanwhile,assetsshowthestrategyandmanagementactivitythatisrelatedtothecollectingoffunds.Fund collecting activity usually involves funds that are obtained fromauthorized capital, deposits, demand deposits and savings. Bankingmanagement goal is to provide short-term loans or long-term loans. Forthatpurpose,liabilityisatool.Assetsincludecash,accountsatthecentralbank,short-termloansandlong-termloans,andfixedassets.Bankassetsmanagementismanagementthatisrelatedtofundsallocationinto investment possibilities. Allocating funds to investment needs to beplanned, organized, directed and supervised so that the goal can beaccomplished.Groupofassetsaredividedintotwoaccordingtoitsnature,namely:1. Non-productiveAssets

Include (1) liquidassets and demand deposits in other banks and (2)fixed assets and inventory. This is called "non-productive assets"becausetheseassetsdonotearnanyprofitorloss.

2. ProductiveAssetsInclude(1)short-termcreditandlong-termcredit;(2)depositsinotherbanks;(3)callmoney;(4)securities;(5)Savingfundsindomesticbanksoroverseasbanks.;and(6)equity

2.Financing

According to Kasmir (2012), financing is cashprovisionor claims that areequivalent to it, based on the agreements between the bank and otherparties that require the financedparty to return themoney including thefeesorprofitsharingafteracertainperiod.The purpose of financing based on Islamic principles is to promoteemployment and economic prosperity in accordancewith Islamic values.This financing shouldbe given to asmanybusinesspersons in: industries,agricultures, and commerce to support employment, production, anddistributionof goods and services in order tomeet bothdomestic needsandexport.

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3.Third-partyfunds

Third party funds (savings) that is defined by the Banking LawNo. 10 of1998 about banking asthe funds that are entrusted bythe public to thebankbasedonfundsdepositagreementintheformsof:demanddeposits,deposits,depositcertificate,savings,orothersimilarforms.According to Kasmir in his book “ManajemenPerbankan“ (BankingManagement)(2002:64),thirdpartyfundsarefundsthatcomefromthecommunity which is the most important source of funds for a bank’soperation and is a measure of success if the bank is able to finance itsoperationfromthissource.Thisfundingsourceisthemostimportantsourceforthebank’soperationalcostandisameasureofsuccessifthebankisabletofinanceitsoperationusingthisfundingsource.AccordingtotheBankingLawNo.10of1998,thefundingsourcesareasfollows:a) Demand depositsare deposits that can be withdrawn any time by

check,transfers,otherpaymentsordersorbyoverbooking.b) Depositsaresavingsthatcanbewithdrawnonlyafteracertaintime,

basedontheagreementbetweenthedepositorandthebank.c) Savingsissavingsthatcanonlybewithdrawnundercertainconditions

and agreement and cannot be withdrawn by check, bank draft, orotherinstrumentsthatareequivalenttothem.

4.OperatingCosts

According to SudarsonoandEdillius (2001), operatingcosts are costs thatarespendforacompany’sbusinessoperation.Operatingcostsaredividedintotwo:1. Fixedcosts.Fixedcostsarecosts,whichremainsthesameinarangeof

specific activities. For example, Employees salary costs remain fixedregardlessthechangesintheactivitiesvolume.

2. Semi-fixed Costs arefixed costs for a certain level of activity volumeandchangeswithaconstantamountatacertainproductionvolume.

3. Variablecostsarecostswhichhaveanumberchangesinproportiontochanges in the volume of activity. For example,the cost ofmaterialsanddirectlaborcosts.

4. Semi-variable cost is the cost that changes and is not dependent onthe change of activity volume. Semi-variable costs consist of fixedcosts and cost variable. Examples of these costs are the cost ofovertimeandbonusforemployeeswhomakecertainachievements.

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5.BankingLoans

Bankfinancialsourceisaneffortbythebanktoseekorcollectfundstobeused as bank operating costs and management. The funds that arecollected can be from the company itself or from other institutions andcouldbefromthecommunity.1. CallMoney

Afundingsourcethatcanbeobtainedbythebankintheformofshort-termloansfromotherbanksthroughtheinterbankcallmoneymarket.Thissourceisoftenusedbybankstofulfillurgentshort-termfinancialneedssuchas inaconditionwhenthebankmadeawrongclearingortherearemassivewithdrawalsbydepositors.

2. Inter-bankLoansTheneedsof fundingabank’sbusinessactivitiescanalsobeobtainedfromshort-andmedium-termloansfromotherbanks.Theseloansaremadetofulfillamorewell-plannedfundingneededtodevelopbusinessortoincreasethebankprofitability.

3. LiquidityCreditfromBankofIndonesiaLiquidityCreditfromBankofIndonesiaisaloanthatisgrantedbyBankof Indonesia, especially for banks that are experiencing liquidityproblems.

6.Non-PerformingFund(NPF)

According to the Bank of Indonesia’s dictionary, Non Performing Fund(NPF)ornon-performingloan(NPL)isanon-productivecreditthatconsistsof credits thatare classifiedas sub-standard,doubtful andbaddebt. TheNPLTermisreservedforcommercialbanksandNPFisforIslamicbanks.

LuhGedeMeydianawathi(2007:138)hasstatedthatNonPerformingLoan(NPL) demonstrates the ability of bank collectability in re collectingthecreditthat is issuedbythebankuntil it ispaidoff.NPLisapercentageofnon-performingloans(underthecriteriaofsubstandard,doubtful,andbaddebt)tototalloansthatisissuedbythebanks.NPLhasanegativerelationwithcreditoffers.Mostcentralbankscategorizenon-performingloansasabank’s assetswhich collectability is doubtful. Tomaintain the security ofcustomers’ funds, central bank obliges commercial banks to providereserved funds forbaddebtwriteoff.Therefore, the larger thenumberofbad debt, the greater the amount of reserved funds should be providedand it requires a greater amount of funds to be reserved.This certainlyaffectsthebank’sprofitability.

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Abank,whichsuffered froma largenumberofnon-performing loans,willhaveadeclineintheirprofitability.ReturnonAssets(ROA),whichisoneofthebenchmarksoftheirprofitability,willdecrease(SiswantoSutojo,2008).NPLTermisreservedforcommercialbanks,whileNPFisforIslamicbanks

OutputVariable

1.OperatingIncome

Operating Income consists of all revenues that are direct result of thebank'sbusinessactivitiesthathavebeenreceived.Bankoperatingincomeisexplainedindetailasfollows:1) IncomefromInterest

This is the post for interest income, either from loans or frominvestmentsmade by the bank, such as checking accounts, savingsdeposits,bonds,and otherloaninstruments.

2) FeesandCommissionThispostisforfeesandcommissionthatareleviedorreceivedbythebank, from various activities, such as creditfees, transfer fees,commissionfromsecuritiespurchase/trades,andothers.

3) OtherForeignExchangeEarningsThis is the post of the profits gained by banks from various foreignexchange transactions, such as the profit from foreign exchangepurchase/trades,theprofitfrommoneycurrencygainbecauseoftheconversion of fees, commission and interest that is receivedfromoverseasbanks.

4) OtherIncomesThis post of other incomes is a direct result of other bankoperatingactivities thatarenot included in the revenueaccount thathasbeenexplained above. For example, the dividends that are received fromtheshares, the income from foreign exchange transactions, andothers.

2.Non-OperatingIncomes

Non-operating income is the income that is earned from non-operatingactivities (basic activities) of banks. Non –operating expenses are theexpendituresforunusualbankcostsinbankingoperatingactivities.1. Non-OperatingIncome

Thispostconsistsof:- Renting- Gainonfixedassetsandinventorytrading

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- GainonForeign-exchange-net- Interoffice-offsetaccountandoffsetinterestearnings- Others

2. Non-OperatingExpensesThispostconsistsof:- Fines/punishment- GainsonForeignexchange-net- Resultsofinter-officeaccountdebitsettingoff-Others

3.ROA

ThedefinitionofReturnonAssets(ROA)isaratiothatshowsthereturnonthe assets that are used by the company. Return on Assets (ROA) is ameasureofeffectivenessinmanaginginvestments.In addition, the investment return shows the productivity of the entirecompany’sfunds,eitherloansorequitycapital.Smallerratiomeansworsecondition.andviceversa.Thismeansthatthisratioisusedtomeasuretheeffectivenessoftheoveralloperationsofthecompany.

According to Kasmir (2008, p 201), Return on Asset (ROA) is a ratio thatshowsreturnofanumberofassetsthatareusedbyacompany.AccordingtoIMadeSudana(2011,p22)ReturnonAsset(ROA)showsacompany'sabilitytousealltheassetstogenerateanaftertaxprofit.From the above explanations, it can be concluded that Return on Asset(ROA) is a ratio that shows the number/value of net profit that can beearnedfromallofthecompany’sassets/wealth.Therefore,aftertaxprofitandtheaveragewealthofthecompanyareused.Thisratioconnectstheprofits that are earned from the company’s operation with the value ofinvestmentorassetsthatareusedtoearnprofits.ReturnonAssets (ROA)canbecalculatedusingsomeformula fromsomeexpertsasfollows:AccordingtoLukmanShamsuddin(2009,p63):

ROA=!"#$%&'(#)'#"%*+,"-!"#$%&''(#'

The above calculation shows thenumber/valueof returnon investmentsthatisearnedbythecompanybycomparingtheoperatingprofitwithtotal

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assets or operating assets. Therefore, a larger ratio is the better. Thismeansthatcompany’sabilitytoearnprofitisbigger/better.4.ROE

a.ThedefinitionofReturnonEquity(ROE)

Return on Equity (ROE) is the ratio tomeasure net profit after tax withowner capital. This ratio focuses on how company operationefficienciesbecome profits for the company’s owners. Menurut Kasmir(2008, hal 204) bahwa hasil pengembalian ekuitas ataureturn onequityataurentabilitasmodal sendiri merupakan rasio untuk mengukurlababersihsesudahpajakdenganmodalsendiri.According to Kasmir (2008, p 204), the results of return on equity orprofitabilityofowncapitalisaratiotomeasurenetprofitaftertaxeswiththeowncapital.Meanwhile, according to LukmanShamsuddin (2009, p 64): "Return onEquity (ROE) is themeasurement of available income for the company’sowner (common shareholders and preferred shareholders) on theirinvestmentinthecompany"Basedontheaboveopinions,wecanconcludethatthisratioistheratioofnetprofitsaftertaxwiththeirowncapital.Ingeneral,thehigherreturnorrevenuethatisearned,thebetterpositionacompanyhas.Thisratioshowstheeffectivenessofacompanyinmanagingitsowncapital,tomeasuretheprofit from the investment of the capital owners or it is often called,companyrentability.Therefore,ReturnonEquity (ROE)canbecalculatedusingthefollowingformula:

ROE=!"#$%&'(#)'#"%#)*!"#$%&'(%)

LiteratureReview

1.TheconceptofEfficiency

The concept of efficiency is a fundamental concept and was born fromeconomicsconcepts.Nonetheless,theconceptofefficiencycanbedefinedfrom various viewpoints and backgrounds. In general, efficiency can be

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definedasaconceptaboutanachievementofresultswithoptimaluseofresources. Adiwarman A. Karim (2006) has stated that "Efficient is doingthe things right", whichmeans that do things in the rightway to obtainoptimalresults.

Ineconomictheory, therearetwogeneralconceptsaboutefficiency.Thefirst isefficiencyintermsofeconomicconceptsandefficiencyintermsofproductionconcept.Efficiencythat is intermsofeconomicconcepthasabroadercoveragemacroperspective.Meanwhile,efficiency inproductionstandpointisviewedfrommicroperspective.

Efficiencyinproductionconceptsislimitedtothetechnicalandoperationalrelations. In aproductionprocess,theyare the conversationof input intooutput. (Walter, 1995 &Sarjan, 1999, in Sutawijaya, Adrian andEttyPujiLestari, 2009: 53).Meanwhile, economic efficiency views broadlytheallocationofresourceswithineconomicactivitiesthatgivesprosperitytopeople/society.(Sukirno,Sadono:2008)

AccordingtoSullivan,Arthur(2011),efficiencyineconomicconceptsrefersto a number of concepts that are related to maximizing the use of allsources in goods and service productions (Wikipedia in Indonesianlanguageversion,2003).Theuseofresourcescanbesaidtobeefficientif:(1)Alloftheavailableresourcesarefullyutilized;(2)Theusagepatternisstandardized to provide additional benefits for society / individuals.(Sukirno,Sadono:2008).

2.IslamicBanking

It has been explained that banks,as a financial institution cannot beseparated from financial activities. In simple words, banking operationalactivities are to collect funds and distribute the funds to public. TheactivitiesofcommercialbanksinIndonesia(Kasmir:2012)areasfollows:a.Fundingfromcommunityintheformsof:

1. DemandDeposit2. SavingDeposit3. TimeDeposit

b.Lendingfundstocommunityintheformsof:1.Investmentloan2.Workingcapitalloans3.Tradingcredit

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c.Providingotherbankingservicessuchas:1.Remittances2.Collection3.Clearing4.Safedepositbox5.Bankcard6.Banknotes(currency)7.BankGuarantee8.Bankreference9.Bankdraft10.Letterofcredit(L/C)11.Travelerschecks12.Tradeandpurchaseofsecurities13.Receivingpaymentsfor:

• Taxes-Telephone-Water-Electricity-SchoolTuition

14.Receivingthepaymentsfor-Salary/Pension/Honorarium-Dividends-Coupon-Bonus/gift

15.Incapitalmarkets,Banksmayprovideorbecome:-Underwriter-Guarantor-Trustee-Broker-Dealer-InvestmentCompany

16.Otherservices.SomeoftheadvantagesofIslamicbanksare:1. ThemechanismsofIslamicbanksarebasedonefficiency,fairnessand

togethernessprinciples.2. IslamicBanksarenoteasilyinfluencedbymonetaryfluctuations.3. Islamic banks are more independent in determining sharing profit

policy.4. Islamicbanksgivearesponsemorequicklytogovernmentpolicy

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5. IslamicBanksavoidthepracticeofmoneylaundering.FromthepreviousexplanationaboutIslamicbanks,Characteristicsandtheproductsof Islamicbanks, Islamicbanksareexpectedtoplayasignificantroleindevelopingtheeconomy.

PreviousResearch

1. Title: Efficiency and Competition of Islamic Banking in Malaysia.

Written by Ahmad Mokhtar, Hamim S; Naziruddin Abdullah;

Alhabshi,SyedM.(2008).

The Results of the research is that Islamic banking efficiency can bemeasured by Data Envelopment Analysis (DEA) method to compareIslamicbankseffieciencywithconventionalbankswiththeobjectivetoachieve amaximumefficiency value that is better than conventionalbanks.Input variables that are used are time deposits and operating costs.Outputvariablesthatareusedaretotalearningassets.Theconclusiontaken from the 20 Islamic banks as research objects, is that eachIslamic bank has shown the efficiency but the efficiency of Islamicbanksarenotasgoodastheefficiencyofconventionalbanks.

2. Title:TechnicalAndRiskEfficiencyEvaluationOf IndianCommercialBanksUsingDEAModelsbySubramanyaminInternationalJournalof

Information,BusinessandManagement(Aug2013).

Resultsof research:The inputvariables thatareused: (1)Numberofemployees (2) Fixed Assets and (3) Non-Performing Assets. Outputvariablesare(1)Deposits(2)LoansandAdvances(advancedpayment)(3)Investmentand(4)Non-interestincome.SecondarydataappearonthebalancesheetthataresubmittedtotheReserveBankofIndiafortheperiodof2010to2011bythecommercialbanks.Conclusion: This study compared sixty three (63) commercial banksthat consist of commercial banks, private and foreign sectors. Theestablishmentofstrongriskcontrolsystemforpublicsectorbanksandforeign banks. Private Banks suffered from significant input lossesfrompublicandforeignsectorbanksbecauseoftheendogenousriskinefficiency.Bankingsectorsmuststrengthentheirinternalriskcontrolsystems.

3. Title: Analisis Faktor-Faktor Yang Mempengaruhi Tingkat EfisiensiPerbankan Syariah Di Indonesia (Analysis of Factors that affect

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Islamic Banking Efficiency level in Indonesia), by Fafa Yushifa

Permana,Results: Of the forty four (44) samples, only 16 samples havecostefficiency. From the regression that is, ROA gives a positive andsignificanteffectonthelevelofIslamicBanksefficiencyinIndonesia.

4. Title:Faktor-FaktorYangMempengaruhiEfisiensiBankDi IndonesiaPeriodeTahun 2008 – 2012 (Factors that affect Banks efficiency inIndonesia in periods of 2008-2012) written by Gloria Anindya

Perwitaningtyas.

The research results: The results show that the variables of Size,Banktypes,CAR,andListedbankshaveaneffectontheefficiencybutLDR and NPL variables do not have any effect on bank efficiency.Meanwhile, CAR and Listed Banks have a negative and significanteffectonefficiency.From the six variables, Size variable has the biggest effect on bankefficiency. Therefore, issuers are expected to paymore attention tothenumber/valueoftheirtotalassetstoimprovebankefficiency.

5. Title: Analisis Perbandingan Efisiensi Bank Syariah Dan BankKonvensional Dengan Menggunakan Metode Data EnvelopmentAnalysis (DEA)(ComparativeAnalysisof the IslamicBanksefficiency

and Bank Conventional Efficiency using Data Envelopment Analysis

(DEA)method).Author:DiniEkaSaptaViniPutriNoor.

The research results: Themeasurement and testing of Islamic banksefficiencyusingefficiencyinIslamicbanksandcommercialbanksusingDataEnvelopmentAnalysis(DEA)andt-test.The results show that in the period of 2008 to 2011, the efficiencycalculation that used Variable Return to Scale (VRS) assumptionprovidestheaverageresultofefficiencycalculationinIslamicBanksat84.73and75.55forConventionalBanksefficiency.Therefore,itcanbeconcluded that the performance of Islamic bank efficiency is betterthantheperformanceofConventionalBanksefficiency.

6. Title:FaktorFaktorYangMempengaruhiEfisiensiPerbankanSyariahDan Perbankan Konvensional Di Indonesia Sebelum Dan SetelahKrisis Ekonomi Global 2008 (Factors that affect the Efficiencies ofIslamicBankingsandConventionalBankingsinIndonesiaBeforeand

AftertheGlobalEconomicCrisisIn2008)byMuzdalifah,

Result: By using Data Envelopment Analysis (DEA), ConventionalbankingissignificantlymoreefficientthanIslamicbankingbeforeandafterthecrisis.Moreover,thebanksize,capitalsandthelevelofcredit

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risksof Islamicbankinggives a significanteffectonOverall TechnicalEfficiency(OTE).Meanwhile,PureTechnicalEfficiency(PTE)isaffectedbyprofitability,banksizeandcapital.ScaleEfficiency(SE)isinfluencedbybanksizeandcreditrisks.For conventional banking, Overall Technical Efficiency (OTE) issignificantlyinfluencedbycapitalandliquidity.Furthermore,thelevelof profitability, credit risk, and liquidity influences Pure TechnicalEfficiency (PTE). Scale Efficiency (SE) is influenced by capital andliquidity.

7. Title:Analisis Efisiensi Perbankan Di Indonesia Dengan PendekatanDataEnvelopmentAnalysis(DEA)(AnalysisofBankingEfficienciesinIndonesia through Data Envelopment Analysis (DEA) Approach) by

ArgaWidyatmoko

Results:Themeasurementresultsrevealedthatthescoresoftechnicalefficiencyshowanincreasingtrendfrom2011to2013.Anotherresultof this study is that foreign ownership in the banks contributesto abetterperformanceofbankEfficiencyinIndonesia.This research also proved that bigger Capital Adequacy Ratio,profitability and bank sizemake a better efficiency. Tobit regressionmodel proved that non-performing loan ratio has a significant effectontheperformanceofBankofIndonesiaefficiencies.

Researchmethod

Themethodused in this research isdescriptivemethod.According toM.Nazir, descriptive method is a method to study a status of a group ofpeople, an object, a set of conditions, a system of thought, or presentevent. The researchobjects are twelve (12) IslamicBanks in Indonesia in2015.The data that are used are secondary data in the form of financial datadocumentation that had been published by Bank of Indonesia (website:bi.go.id). The analysis tool that is used isData EnvelopmentAnalysis andBanxiaFrointieranalysis(Frontiersoftware).

DataEnvelopmentAnalysis(DEA)

DataEnvelopmentAnalysis(DEA)isamethodologythatisusedtoevaluatetheefficiencyofadecision-makingunit (laborunit) that is responsible touse a number of inputs to obtain an output target. DEA is a fractional

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programming model that can cover a lot of inputs and outputs withoutdetermining the loadofeachvariable,withoutexplicit explanationaboutthefunctionalrelationsbetweeninputandoutput(unlikeregression).DEAcalculatestheefficiencylevelinscalarandefficientinputandoutputlevelsfortheunitthatisevaluated.

DEAmethod was invented as ameans to evaluate a performance of anactivityofanorganization.ItisthencalledDMU(DecisionMakingUnit).Ina simple way, measurement is expressed by the ratio: (Output / Input)whichareameasureofefficiencyorproductivitycanbedeclaredpartially.The concepts that are used in defining the relations between inputandoutput in thebehaviorof financial institutionson theparametric andnon-parametricmethodsare:A. ProductionApproach

Productionapproachdefinesoutputasnumbersofaccountsorrelatedtransactions. Input in this case is numbers of labors, capitalexpenditureonfixedassetsandothermaterials.

B. IntermediationApproachThisapproachviewsaninstitutionasanintermediatorthatchangeortransfertheassets fromsurplusunits tothedeficitunits. Inthiscaseinstitutional inputsandoutputssuchas laborcostsandcapital,whiletheoutputsaremeasuredintermsofinvestment

C. AssetApproachThe last approach is asset approach that visualizes the primaryfunctionsofaninstitution.Thisisclosetointermediationapproachinwhichouputsaredefinedinassets.

References

Aldridge, John.E.SiswantoSutojo.2008.GoodCorporateGovernance.PT.DamarMuliaPustaka.Jakarta.

Gobel, Maryanti. 2013. Analisis Efisiensi Biaya Operasional MelaluiPengelolaan Tunjangan Makan dan Jaminan PemeliharaanKesehatanPadaPerusahaanJasaOutsourcing.JurnalEMBAVol.1No.4.Manado.

Karim, Adiwarman. 2006. Bank Islam – Analisis Fiqh dan Keuangan. PT.RajaGrafindoPersada.Jakarta.

Kasmir.2002.Dasar-DasarPerbankan.PT.RajaGrafindoPersada.Jakarta.

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Kasmir. 2012. Analisis Laporan Keuangan. PT. Raja Grafindo Persada.Jakarta.

Meydianawathi, Luh Gede.2007. Analisis Prilaku Penewaran KreditPerbankan Kepada Sektor UMKM di Indonesia (2002-2006)(Buletin Studi Ekonomi Vol. 12 No. 02 Tersedia diWWW.google.com(28April2016)

Sastradipoera, Komaruddin. 2004. StarategiManajemenBisnis PerbankanEdisi1.Kapa-Sigma.Bandung.

Sudarsono,Edillius.2001.KonsepEkonomi :UangdanBank.RinekaCipta.Jakarta

Sukirno,Sadono.2008.MikroEkonomiTeoriPengantar.PT.RajaGrafindoPersada.Jakarta.

SuthawijayaA.,Lestari.EttyP.2009.EfisiensiTeknikPerbankanIndonesiaPasca Krisis Ekonomi: Sebuah Studi Empiris penerapan ModelDEA. Jurnal Ekonomi Pembangunan Vol. 10 No. 1 FakultasEkonomiUniversitasTerbuka.Jakarta.

Triandaru, Sigit. Budisantoso, Totok. 2006.BankDan Lembaga KeuanganLain.Salembaempat;Jakarta

Undang-Undang Republik Indonesia No. 10 Tahun 1998 TentangPerubahanatas Undang-Undang No. 7 Tahun 1992 TentangPerbankan.

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PERFORMANCESOFBALANCEDSCORECARDASABENCHMARK

TOWARDSBUSINESSPERFORMANCESOFPT.PJBTOINCREASE

COMPETITIVEADVANTAGE

WidyaYuliarti–120820150509NurhayatiRahmanP–120820150556

MasterofManagementProgram,FacultyofEconomicsandBusiness,UniversitasPadjadjaran(MMFEBUNPAD)

RESEARCHBACKGROUND

Ingeneral,allorganizationswant toachieveaprofitasmuchaspossible.To achieve the profit, an organization should do a calculation with twoways.Theyare,acomponentofbusinessmodelandbalancedscorecardasastrategicmanagement.“BalancescorecardisaframeworkformeasuringfirmperformancethatwasdevelopedbyRobertNortonandDavidKaplan.The framework’s performance measure is a combination of financialmeasures and some of the organizational measures that drive financialperformance.Performanceismeasuredfromfourperspectives;customer,internal, innovation and learning, and financial. In the financialperspectives,measuressuchascashflow,salegrowth,operating income,and return on equity have been used tomeasure performance from thefinancialperspective.”(AllanAffuah,2004).AccordingtoSimic,Bolfek&Stoic(2008),competitiveadvantageisneededtosatisfyconsumer,so thatconsumerwillgetavaluethat ishigher thantheproduct, at the same time,anorganizationora companycanhaveabigprofitlikeanorganizationoracompanywants.Competitiveadvantagealso happens when a company can give a service benefit and productwhich has the same quality like another product from other competitor,therefore the offer of a given pricewill be lower than that of the othercompetitors.The application of the Balanced Scorecard in the process of strategicmanagement is aimed to clarify and translate vision and strategy; tocommunicate and link strategic objectives and measures; to plan, settargets, and align strategic initiatives; and to enhance strategic feedbackandlearning(KaplanandNorton,1996).

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TheBalancedScorecardcontributestotheimplementationofthegoalsoftheorganizationinmulti-dimensionalsystemofindicatorsandparametersthat measure the performance of the organization on the base ofperspectives (Kaplan and Norton, 1997, p. 9). The Balanced Scorecarddifferentiatesbetween four central and importantperspectives regardingstrategicdevelopment:• The financial perspective (Which material results should be

achieved?).• The customer perspective (What qualitative and quantitative

performanceisexpectedbythestakeholders?).• Theinternalprocessperspective(Whichworkprocessesareimportant

fortheorganization’ssuccess?).• The learning and development perspective (What activities will be

necessary to develop the organization and its personnel further inorder to guarantee the success of the organization? What can belearnedfromfailuresforthefuture?)(Nickel,2011,p.23).

• The Balanced Scorecard approach provides a general framework forunderstanding the casual chains between the strategic objectivesplacedintheperspectives(Kettunen,2009).

• Inorder toachievePJB2018’svision“Becoming the leaderofPowerGeneration Company in Indonesia with the world class standard”,management with all of the staffs have formulated a set ofcomprehensivestrategywhichcalledasPJBGOESUP(GrowththroughOrganizational Readiness and Excellence in Operat ional forSustainability and Achieving Ultimate Performance) that has threemainpoinst,asfollows:

• Maximize PJB’s contribution to fulfill new electric needs through abusinessexpansioninaccordancewiththenationalmarketgrowthofelectricityandeconomicregion.

• UtilizeOperational Excellence throughaprocess that is suitablewithbest practice in asset management and strengthen strategiccompetenciesthatneedstodriveavaluecompanymaking.

• It is the base thatwill sustain the twoother pillars. The Company isdirected to establish a culture of global leadership on the basis ofculturalvaluesPJBandstrengthenstrategiccompetenciesrequired.

Strategy Map with using an approach Balance scorecard that has 4perspectivesandequippedwiththesizetoachieveeachofstrategictarget(ExcellencePerformanceIndicators),asfollows:

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• FinancePerspective,PJBattemptedtooptimizereturnfromtheuseofassets, increase income composition and increase a growth ofgeneratingcapacity.

• Consumerperspective,PJBattemptedtobecomea leadingcompanyandthefirstchoiceforcapitalownersandotherstakeholdersandalsotoensure the customer satisfaction in accordancewith theexpectedneeds.

• Internal business perspective, PJB attempted to increase integratedmanagement system, develop a new business, increase an incomefrom commercial business, ensure PJB can sustain, ensure excellentperformances, ensure secure of primary energy supply and ensuregeneratingcapacityalwaysobeytheenvironmentagreementandK3.

• Learning and growth perspective, PJB attempted to prepare theleader PJBGroupwithworld class capability, ensure implementationof company culture, develop an excellent Human Resourcescompetencyandincreaseinformationtechnologycapabilitytosupportthecompany’sgrowth.

The growth of electricity businessmarket gradually increases profit withtheeffectofmany renewableexisting resources.PTPJBhasn’t combinedbalance scorecard that have been implemented with businessperformances and competitive advantage towards another competitor.Therefore, the titleof this research is “Analyzeofbalance scorecardasabenchmark towards business performances of PT. PJB to increasecompetitiveadvantage”.

LITERATUREREVIEW

PERFORMANCEMEASUREMENT

Performance is an appearance situation as a whole of the company’sactivities over a given period of time, the result or achievement that isaffectedbyanoperationalactivityofthecompanyinutilizingtheresourcesowned(Helfert,1996).Themaingoalofperformancemeasurementisforpersonalmotivationinachievingorganizationtargetandfulfillstandardsofbehaviorthatwaspreviouslyset,sothatresultinganactionandresultthatisdesiredbytheorganization(MulyadiandJohnySetyawan,1999).Performance assesment can be used to suppress an improperly behaviorand to stimulate, also correctly enforce the desired behavior, through a

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feedback as the result of performances at given time, also awards bothintrisic also extrinsic.Withperformance assesment, topmanager can getanobjectivitytogiveacompensationinaccordancewiththeachievementofeachof thesecenterswhichhavecontributed to theoverall corporateresponsibility.Allof thismeasure isexpectedtobuildthemotivationandstimulation in each section to work more effectively and efficiently.According to Rainer Feurer and Kazem Chaharbaghi in Performancemeasurement in strategic change, 2016, Performance measurementsystems should therefore be designed in such a way that they enableorganizationstolearnhowto:- evaluatetheinternalandexternalenvironmentsofanorganization;- determine the underlying causes behind the existing situation

togetherwiththeirinterrelationships;- identifythefuturetrendsandtheirimplicationsfortheorganization;- identify organization goals in order to determinewhere to be in the

future;- acquire knowledge regarding the relationship between actions and

goals;- defineandcommunicatenewobjectivesthroughouttheorganization;- align operations and supporting objectives for instituting a common

purpose;- developasystemforrewardingachievementswhichactsasacatalyst

formotivatingfurtherchange.BALANCESCORECARD

KaplanandNorton(1997)conceivedtheBalancedScorecardoriginallyasadiagnostic tool, which provided managers with a comprehensiveassessmentoforganizationalperformance.The Balanced Scorecard translates the vision and strategy of theorganization (Tayler, 2010). The Balanced Scorecard also provides aframeworkforacompanytopinpointitsstrategicobjectivesandmeasureitsperformancebywayoffourperspectives;financial,customers,internalbusinessprocesses,andlearningandgrowth(Tuan&Venkatesh,2010).Generally, the balanced scorecard is necessary for the following reasons(Kirbyetal.,2003,p.7).• Convertingstrategyintoaction;• Participationofallstaffinthedefinitionandstrategyproviding;

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• Managementofintangibleassets;• Changesinfunctionswithoutchangesinbusinessstructure;• Measurementoftheresults;• Managementofdailyoperations;• Understanding the cause and effect relationship between the

capabilitiesofprocessesandstrategy;• Prioritizeandallocateresources;• Properandcontinuousfeedbacktosetthepriorities;• Accesstoasetofmeasurementindicators.Many organizations have realized the importance of continuous andconstantoperations,includingtheuseofdifferentperformanceevaluationsystemsforseveralyears.FourPerspectivesoftheBalancedScorecardAsshown inFigure2.1, thebalancedscorecard,changestheorganizationmainobjectiveandstrategyintoobjectivesandorganizedmeasuresinfouraspectsoffinancial,customer,internalprocessesandlearningandgrowth(Kaplan&Atkinson,2007,pp.368-369).

Figure2.1FrameworkofBalanceScorecard(NortonandKaplan,1996,p.11)

Thefourmentionedaspects,financial,customer,internalbusinessprocessandlearningandgrowthwillfurtherbedescribedasfollows:1. FinancialPerspective

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This perspective considers ofmaximizing shareholderswealth as theultimate goal of an enterprise. All efforts to improve customersatisfaction,improvethequalityandreducedeliverytimeofproductsandservices.Iftheydonotleadtotangiblefinancialresults,theywillhavenovalue(Smith,2006).Financialgoalsareoftenusedtomeasurethe company’s viability. For example, operating profit, return oninvestment, rapid growth in sales, future cash flows and the recentcreationofeconomicaddedvalueareoffinancialmeasures(Kaplan&Atkinson,2007,p.368).

2. CustomerPerspectiveInthisperspective,thestrategyofdifferentiatedvalueprovidedtothecustomerisconsideredasatarget.Byimplementingauniquestrategyandusingavailableresources,companieshavecreatedthemostvaluein their in target markets for customers, maintain them and attractnew customers. There are several factors that affect customersatisfaction, including the followings, thequalityof servicesprovidedto customers, employee productivity and organizational knowledge.Major customers’ complaints stem from staff interactions withcustomers (Smith, 2006). In this perspective, from the balancedscorecard, key performance metrics, include customer satisfaction,customer retention, new customer acquisition, customerprofitabilityandmarketshare(Kaplan&Atkinson,2007,p.369).

3. InternalBusinessProcessPerspectiveValueiscreatedbyinternalbusinessprocesses.Organizationsmanagetheir internal processes to differentiate provided value to thecustomer. Achieving each of the goals of the customer perspectives,needs a series of operational processes efficiently and effectively.These processes should be set in terms of internal processes andappropriatemeasures to control the progress which should develop(Smith, 2006). The perspectives of internal processes remind thenecessaryprerequisitestoperformtheworkinquestionguidedbytheultimateobjectives,and toachieve financialobjectivesandcustomerneeds(Nir,2004,pp.49-50).

4. LearningandGrowthPerspectiveThe organization’s ability to innovate, improve and learn, are tieddirectly to its value as an organization. Kaplan knows the context oflearning,growth,andinnovationastheenterprise infrastructure.Themain point is that learning to improve organizational processes isessentialinimprovinginternalprocessestoimprovecustomer.

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APPLICATIONOFBALANCESCORECARD

The application of the Balanced Scorecard in the process of strategicmanagementisaimed:• toclarifyandtranslatevisionandstrategy;• tocommunicateandlinkstrategicobjectivesandmeasures;• toplan,settargets,andalignstrategicinitiatives;and• toenhancestrategicfeedbackandlearning(KaplanandNorton,1996).TheBalancedScorecardcontributestotheimplementationofthegoalsoftheorganizationinmulti-dimensionalsystemofindicatorsandparametersthat measure the performance of the organization on the base ofperspectives(KaplanandNorton,1997,p.9).TheBalancedScorecarddifferentiatesbetweenfourcentralandimportantperspectivesregardingstrategicdevelopment:• The financial perspective (Which material results should be

achieved?).• The customer perspective (What qualitative and quantitative

performanceisexpectedbythestakeholders?).• Theinternalprocessperspective(Whichworkprocessesareimportant

fortheorganization’ssuccess?).• The learning and development perspective (What activities will be

necessary to develop the organization and its personnel further inorder to guarantee the success of the organization? What can belearnedfromfailuresforthefuture?)(Nickel,2011,p.23).

The Balanced Scorecard approach provides a general framework forunderstandingthecasualchainsbetweenthestrategicobjectivesplacedintheperspectives(Kettunen,2009).

Organization needs to apply balance scorecard as a set of performancewhich is multi-dimentional. This reflects the needs to calculate allperformancethatisimportantfororganizationalsuccess.Themostwidelyknown approach is the balanced scorecard as a performancesmeasurement. Now the balanced scorecard has been widely used as astrategy development and as an execution tool that are developed inoperationalenvironment.

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KaplanandNorton(1993)examinedtheuseofbalancedscorecardinthreecompanies includingRockWater,AppleComputerandamanufacturerofsmall and sophisticated equipment. According to their findings, thebalancedscorecardhasthemostsuccessfulwhenit isconsistentwiththechangingprocess.Also,byusingthebalancedscorecard,differentpartsofbusiness units can have proper understanding of the strategy related tothem. If the balanced scorecard has a clear prospective toward businessunit strategy, the used information and criteria, will be valuable theimportant data and information to competitors. Boleyn (2006) byinvestigating on the reliability and validity of the Balanced Scorecardframeworkandrelatedcriteriatoitconcludedthatthebalancedscorecardwas a reliable and valid performance evaluation model. They concludedthat the implementation of the balanced scorecard with regard to thegoalsandmissionofthecompanieshaveeffectontheimplementationandimpactontheiractivities.Theimplementationofthebalancedscorecardisregarded as a new solution for strategic information in the organization.Chenetal.(2006)basedontheirresearchconcludedthattheparticipationof chief financial officer, office managers, topmanagement support andorganization size are of the factors are important in the process ofimplementingthebalancedscorecard.Discussion about performance measurement with using balancedscorecard is more often being done in an application of a company ororganizationwhichisaimedatseekingprofit(profitseekingorganizations).It is rarely to discuss balanced scorecard appplication on non-profitorganizations (not-for profit organizations or organization with a specialcharateristics like a cooperatives marked relational contracting, which iswhentheownerandtheconsumeristhesameperson,andwheremutualbenefitprioritiesarethemainmembers(Merchant,1998).Balanced scorecardwith companymanagerwill be able tomeasure howtheir business unit do the making of value today by considering theinterests of the future. Balanced scorecardenables tomeasurewhathasbeen investedondevelopingofhumanresources,systemandprocedure,forthesakeoffutureperformance.

BalanceScorecardFrameworkatPT.PJB

PT Pembangkitan Jawa-Bali (PT PJB) was established in 1995. PTPembangkitanJawa-Bali(PTPJB)hasalwaysbeendedicatedtothenation

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and the state of Indonesia. PT PJB takes a leading role in promoting thenational economy development by providing high-quality, reliable andsustainable energy supply. With our vision to become a leading powergeneration company in Indonesia with a world-class standards, wecontinuallydeliver innovationsand improvements. Inorder to realize thevision as leader of Indonesian world-class standards power stationcompany,PJBisonamissioninclude:• Producingaelectricpowerwhichisreliableandcompetitive• Continuingperformanceimprovementthroughtheimplementationof

corporate governance and synergy generation business partner withbestpracticemethodsandenvironmentallyfriendly

• Develophumanresourcecapacityandcapabilitythathasthetechnicalcompetenceandmanagerialexcellenceandbusiness-minded

ToachieveallofPJBvisionandmission,PTPJBneedsagoodstrategy.Theyuse a balanced scorecard as tools to achieve their vision and mission.Throughfourperspectivesofbalancedscorecardasaneffectivemeanstobuild achieving vision, mission, and PT PJB’s strategy. Through therelevance of each of these perspectives, the company will build theprimarytargetinachievingorganizationalobjectives,bothshortandlongterm,thatcanbeseeninFigure2.2.

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Figure2.2.BalanceScorecardFrameworkatPTPJB

BUSINESSPERFORMANCE

Business performance management (BPM) is an approach that changesbusinessstrategyintoanactionthathasfour-stepprocesses,wheretheseprocesses are divided into strategy and implemetation (Eckerson, 2009).BPM has excellence in meeting the needs of corporate strategy bymeasuring the company's processes. The term "Business PerformanceManagement"was first introduced to the business language by scientificresearch centers and Information Technology companies designing anddistributing software (Cockings, 2007). Initially this notion was mainlyequatedwiththeplanning,budgeting,reporting,forecastingandscenario-modeling software applications. Slightly later it became connected

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(associated) with operational reporting, key indicators - KPI (KeyPerformanceManagement)andmanagerialdashboardsi.e.thetoolsusedfordatavisualization(Vasiliu,2009).BPMSG group (Business Performance Management Standards Group),which is responsible formaintaining standards within the frame of BPMsystems,hasdefinedaBPMsystemas:- a set of integrated, closed in cycles managerial and analytical

processes,which are propped up by technical solutions, that in turnsupportanorganizationinfinancialandoperationalactivities,

- anactivatorallowinganorganisationtodefinestrategicobjectivesandsupply mechanisms for measurement and management of theirrealizationeffectiveness,

- basicprocessesandactivitiesreferringtothefinancialandoperationalplanning, data consolidation and reporting, modeling, analysis andmonitoringofindicators,connectedwithastrategyofanorganization.

- The core principles and goals of BPM are the following (Smith andMartin,2003):

- efficiency: the ability to optimize operations and actions of anorganization, individuals, andbusiness processes to ensure that theyresultindefinedgoalsanddesiredoutcomes,

- quality:theabilitytocontinuouslyimprovethequalityofrelationships,processes and products or services to fully leverage practices ormethodologiesthatmaximizethevalueofresourcesandassets,

- value: the ability to create and manage assets to increase businessthroughout and deliver long-term ROI for maximizing stakeholderreturn.

COMPETITIVEADVANTAGE

Competitiveadvantageissomethingthatisnotownedbycompetitors,dosomethingbetter thanothercompanies,orbeable todosomething thatcan’tbedonebyothercompanies.According to Michael Porter, there are two basic types of competitiveadvantage: cost advantage and differentiation advantage. A competitiveadvantageshowsupwhenacompanycanmakeaproductthatisthesameas with the other product from other competitor with lower cost (costadvantage), ormake adifferent product/servicewhich is better than theproduct/service that produce by other competitor (diiferentiation

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advantage). Competitive advantage will enable company to create morevaluetoitscustomerandthecompanycangetahigherprofit.

ResearchMethod

The object of the research is the source of the data acquired for theresearch conducted. The subjects taken for this study consist of theindependent variables of balanced scorecard (X1) and businessperformance (X2) and the dependent variable of competitive advantage(Y).TheunitthatwillbeexaminedinthisresearchisPT.PJB.ItislocatedinCirata,Purwakarta.Basedonthevariablesstudied,thetypeofthisresearchisdescriptiveandverification. According to Sugiyono (2008:147), a descriptive analyzing isused to analyzed the data with describing or drawing the data which isbeing collected as it is without making a generalized conclusion. Adescriptivemethodaimstocreateadescriptionorapictureofinformationon thenatureof and the relationshipbetween the variables studied in asystematic,factual,andaccurateway.Throughadescriptivestudy,wecanobtain a picture of the balanced scorecard and business performance inrelationtocompetitiveadvantage,whileverificationaimstotestthetruthofthehypothesisbyusingastatisticalanalysis.Thisstudyteststhetruthofthe hypothesis about the influence of balanced scorecard and businessperformanceoncompetitiveadvantage.Basedon the typeof the research, themethodused in this research is atimeseriesanalysis,whichistoanalyzethedatawiththeuseofahistoricdata from 2010 until 2015. The step starts from financial perspective,internal business perspective, customer perspective and learning andgrowth perspective. The study aims to describe the balanced scorecard,business performance, and competitive advantage and explains theinfluencebetweenthesaidvariables.SourcesofDataandDataCollectionTechniques

SourcesofDataThe data source, according to Sanusi (2011: 104), tends to point at thedirectionwhere thedataoriginate.Basedon that, thedataare classifiedintotwocategories,namely:1. Primarydata

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Theprimarydata in this studyareobtainedbymeansofobservationand interviews at PTPJB that contains questions about the variablescovering balanced scorecard, business performance, and competitiveadvantage.

2. ThesecondarydataThe secondarydata are gained froma varietyof references, articles,journals, scientific publications, and documentation of the companythathastodowithfinancialcompensation,careerdevelopment,andjobsatisfaction.

RESEARCHPURPOSE,LIMITATION,ANDORIGINALITY

In this study, the writers examine only two variables that influencecompetitive advantage, namely, balanced scorecard and businessperformance.Theoretically,thereareothervariables.Therefore,weneedmoreresearchonothervariablesthataffectjobsatisfactionthatPTPJBoranyoneelsewhpcanconducttosolvesaidproblem.

REFERENCES

Affuah,Allan.2004.BusinessModel.Singapore:Mc-GrawHillBangun, Wilson. 2012. Manajemen Sumber Daya Manusia. Jakarta:

ErlanggaDesler,Garry.2010.ManajemenSumberDayaManuisa.Jakarta:PT.IndeksDudin, Mihail Nikolaevich. 2014. The Balanced Scorecard as a Basis For

Strategic Company Management in the Context of the WorldEconomy Transformation. Moscow: Canadian Center of ScienceandEducation.

Feurer,RainerandKazemChaharbaghi.2016.Performancemeasurementinstrategicchange.UnitedKingdom:CranfieldUniversity

Kaplan, R. S., & Norton, D. P. (1997). Using the balanced scorecard as astrategicmanagementsystem.LongRangePlanning,30(1),75-85.

Kettunen, J. (2009), “Essays on strategic management and qualityassurance”, available at:http://herkules.oulu.fi/isbn9789514291784/isbn9789514291784.pdf(accessed31march2016).

Khanmohammadi, Mohammadhamed, Mahmoud Mohammadi & NahidMehdizadeh. 2015.The Feasibility of Implementing theBalanced

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Scorecard (Case Study: Nationwide Provincial TelecomCompanies).Iran:IslamicAzadUniversity

Hladchenko, Myroslava. 2014. Balanced Scorecard – A StrategicManagement System of The Higher Education Institution.Ukraine:UniversityofEducationalManagement

Olszak,CelinaM,PhDandZiemba,Ewa,PhD.2010.BusinessPerformanceManagement for Competitive Advantage in the InformationEconomy.Poland:JournalforInternetBankingandCommerce

PTPJB.2014.AnnualReport.Surabaya:PT.PembangkitanJawa-Bali

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THEINFLUENCEOFENTREPRENEURSHIPMOTIVATIONANDSERVICE

INNOVATION,TOCOMPETITIVENESSTOWARDS(ACASESTUDYONCIGONDEWAHFABRIC’STRADERSMIRCO,SMALL,

ANDMEDIUM)

WulanNurul,StudentID.120820150543FebyAmpuhTresna,StudentID.120820150504

MasterofManagementProgram,FacultyofEconomics,andBusinessPadjadjaranUniversity(MMFEBUNPAD)

ResearchBackground

The corporate world is a world thatis always evolving dynamically andcertainly affecting the pace of each of the businesses. Globalization andtechnological developments also influence the survival of any businesscarriedout. Globalization increases competition and eliminates theboundariesofeachcountrysothatitismorecomparative.Micro,SmallandMediumEnterprises(UMKM)asawholeisoneimportantpart of the economy of a country or region, as well as in Cigondewahdistrict. Besides having an important role in the rate of communityeconomy,UMKMalsoassiststhegovernmentincreatingnewjobssoastocreate new work units. In Cigondewah districtBandung, UMKMs areconsidered important primarily because it employs many workers, notbecauseitcouldpotentiallybeasourceofinnovationaswellasUMKMinthedistrict,eveninacountrylikeotherdevelopedcountries.TodeterminetheeffectofinnovationonthecompetitivenessofUMKM,ameasurementshouldbeperformed.Inthemeasurementofinnovation,theelementthatmust be considered is the culture of innovation and innovation capacity,while in themeasurementof competitiveness, indicators tonote are thecompetitivenessofproductsandthecompetitivenessofenterprises.The development of small and medium micro enterprises inCigondewahdistrictBandunghas little improvements(stagnant)fromyeartoyearalthoughthereisalsoaslightlydecreased,butwhenviewedfromanumberofbusinessunits,thelevelofemployment, investmentvalueandproductionvalueofUMKMinCigondewahdistrictBandung,there is littleprogress.

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Industrieswithmicro, small, andmediumorbetter knownas theUMKM(Micro, Small and Medium Enterprises) help the development andeconomyofIndonesia.Employmentinmicro,small,andmediumisgreaterthan in larger companies so it more quickly reduces the unemploymentrate. In addition, the role of UMKM can be seen from the ( Ministry ofCooperativesandUMKM,2005)1. His position as a major player in activities in economy, in various

sectors.2. TheEmploymentisthebiggest.3. Importantplayerinthedevelopmentoflocaleconomicactivitiesand

communityempowerment.4. Creatorisanewmarketandasourceofinnovation5. Participatinginmaintainingthebalanceofpaymentsthroughexport.TheroleofUMKMsinthenationaleconomyofvariousaspectsinvolvesthegovernment in drafting Development Program in the National MediumTerm Development Plan (RPJMN). RPJMN in 2004-2009 emphasizes thedevelopment program of business support systems for UMKM andentrepreneurship development program and its ability to compete. Thisinvolves the creation of business conducted to achieve the performanceand structureof small andmediummicro enterprisesmore successful orsuccessful.DevelopmentProgramintheNationalMediumTermDevelopmentPlanof2004-2009 emphasizes the development program of business supportsystems for UMKM and entrepreneurship development programs andcompetitive ability (RPJMN, 2005). Government gives the attention toUMKMs.UMKMshavearoleinthenationaleconomy.TheRoleofMicro,SmallandMediumEnterprises(UMKM)inIndonesiaisverylargeandhasbeen proven to save the nation's economy during the economic crisis of1997.Scarborough&Zimmerer(2005)statesthattheeconomicrecoveryrunsforsevenyearsandseveralstudieshaveshownthattheIndonesianeconomyis not just rely on the role of big businesses, but UMKMs have provedrelatively better endurance compared to larger-scale enterprises. Notsurprisingly well during the crisis and recovery period, Indonesia'seconomy,UMKMshave a very strategic role and importance in terms ofvarious aspects. First is ina large number of industry and found in every

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sectoroftheeconomy.Second,ithasgreatpotentialincreatingmorejobsthan the same investment in the business on a bigger scale. Thirdly, thecontributionofUMKMintheformationofGDPisquitesignificant.Fourth,ithasacontributiontoforeignexchangewithexportvaluestable.Motivation to be an entrepreneur is something of the background orencouraging someone to do the activity and energize leading to theattainment of the needs, satisfy or reduce the imbalance by opening abusinessorbusiness (Zimmerer inTama,2010).Mentalentrepreneurshipisone'sattitudeinproperactions.Peoplewiththeentrepreneurshipabilityhavethehardabilitytoachievetheirgoalsandneeds(PurnomoinSetiadi,2010). The mental here is the nature of entrepreneurship andentrepreneurial character that has been ingrained in the individual as aresultofhislifelongindividuallearningprocess(Suryana,2009:2).ProblemFormulation

1. DoesEntrepreneurshipMotivationhaveapartialeffectoncompetitiveness?

2. DoesServiceInnovationhaveapartialeffectoncompetitiveness?3. DothemotivationEntrepreneurshipandInnovationServiceshave

effectsimultaneouslywithcompetitiveness?

ResearchObjectives

1. TofindouthowMotivationEnterprisehasapartialeffectoncompetitiveness.

2. TofindouthowInnovationServicehasapartialeffectoncompetitiveness.

3. TofindouthowMotivationEntrepreneurshipandInnovationServiceshavesimultaneouseffectonCompetitiveness.

LiteratureReview&Hypothesis

EntrepreneurshipMotivationEntrepreneurial motivation is what drives an individual to engage in abusinesstobusinesscreation.(Yalcin&Kapu,2008)in(Zimmerman&Chu,2010:4). Yalcin and Kapu (2008: 188-189) clarified entrepreneurialmotivation into four (4) categories, namely: Financial, recognition,

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freedom, and family traditions (motive weeks to continue with thebusinesshisfamilyandfamilymemberswhodobusinessmimic).Motivational factors can alsobe amotivating factor in clarifying andpullfactors. The driving factors include the needs to increase family income,dissatisfactionwithwagesand jobs,problems in finding theright jobandflexibility of needs in accomplishment for family responsibilities. Pullfactorsincludetheneedforanindependent,self-actualizationenhancethestatusquoandreputationinthecommunity(Yaclin&Kapu,2008:188-189).Zimmerman&Chu(2010)inastudyentitled"MotivationandproblemsinVenezuela",showedthatthedesiretobeyourownboss(tobeownboss)and to increase revenue (to Increase my income) is the main motivatorthemtoentrepreneurship.Chauduri et.al (2012: 4) in his research entitled "when it comes tomotivationofentrepreneurs-afewissue"statesthatthereare13factorsdeemed to affect individual motivations in decision-making inentrepreneurshipasfollows:1. Moneymotive2. Capabilitydevelopmentandutilization3. Desiretodosomethingnewandpath-breaking4. Satisfactionfromone’swork5. Aspirationforindependentwork6. Desiretoleadagroupadbeingrecognized7. Desiretointroduceintasktoavoidmonotony8. Achievementoftargetsandstandardssetbyoneselfandother9. Workingbecauseitisone’sduty–Deonticmotif10. Desireforsocialstatus11. Desireforatoppositionintheindustry12. Tobelongtoagroup13. DesireforinfluencingotherServicesinnovationUnderstanding innovation by Owano et.al (2014) is the change of thecompany to be better able to meet the needs of the market. If thecompany is able tomeet the needs of themarket, consumerswillmakepurchasesofproductsor servicesof thecompany.Meanwhile,AccordingDhewanto(2013)innovationasnewcombinationsoffactorsofproductionmadebyemployersandthethoughtofinnovationistheimportantdriving

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force(criticaldrivingforce)ineconomicgrowth.Innovationappliedtothecompany to be more effective is innovation in products, processes,services, and technologies. Changkaew et.al (2012) state that serviceinnovationisaformofserviceinnovationofnewservicesprovidedbythecompany, newworkingmethods applied by the company and the useoftechnologywiththetimesgiventoconsumerstomeetconsumerdesires.Thetechnologyusedtofollowthedevelopmentwillacceleratetheservicesprovidedtoconsumers.Meanwhile, according to Delafrooz et.al (2013), is a new activity by thecompany that produces the new service a new procedure or process ofincreasingtheaddedvaluetotheservicesprovidedbythecompany.Withthe innovation of the company will improve the performance of thecompany.CompetitivenessPorter(1995:5)says:"competitionisatthecoreofthesuccessorfailureoffirms. Competition is the core of the success or failure of the company.There are two sides posed by competition, namely the success toencourage companies to bemore dynamic and competitive in providingproducts and provide the best service for the market, so that thecompetition is regarded as the opportunity tomotivate.While the othersideisafailurebecauseitwillweakenthecompaniesthatarestatic,fearofcompetition and is not able to produce a quality product, so thecompetitionisathreattothecompany.Competitiveness in business is the ability to be able to competewith itscompetitors in attracting consumer attention. Without theircompetitiveness, businesseswill have difficulty in facing the competitionandthiscanthreatenthesustainabilityofthebusinesscarriedout.Simple Online (2007), defines competitiveness (competitiveness) asfollows:"Acomperativeconceptoftheabilityandperformanceofafirm,subsector or country to sell and supply goods and or services in a givenmarket"Dimensionsand indicatorsofcompetitiveness,by(Porter,2008:419), thecompetitivenesshasthefollowingcharacteristics:1. QualityofProducts2. Convenienceofproducts

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3. Durabilityofproducts4. CompetitivePrices5. CompetitivenessofPrice6. AllowancePrice7. CompetitiveAdvantage8. UniquenessofDesign9. TheuniquenessofMaterial.Hypothesis

Hypothesismodel

Fromtheexplanationabove,thewritershavedevelopedthehypothesisasfollows:1. Ho:b=0(EntrepreneurshipMotivationandServiceInnovationhaveno

impacttowardCompetitiveness)2. H1: b ≠ 0 (Entrepreneurship Motivation and Service Innovation have

impacttowardCompetitiveness)

ResearchMethods

ResearchMethodThisresearchusedverificationapproachtotestthetruthofthehypothesisbymeansofstatisticaltests,theresearchersconductedproperverificationapproachtocollectdataonanobjectinthefield.Thedatacollectionwasdonebydistributingquestionnairesasamediumtocollectbasicdataandtake a sample of a population. After that, the researchers testes the

EntrepreneurshipMotivation

(X1)

ServiceInnovation(X2)

Competitiveness(Y)

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hypotheses from data obtained on the relationship between eachvariable., this study referred to as hypothesis testing ofexplanatorysurvey.SourcesofData1. Primary data is data information obtained from the researchers

themselveswhenconductinginterviews,questionnairesmanagement,observation and discussion. The Researchers obtained data directlyfrom survey of respondents. Sources of data in this study wereobtained through questionnaires management. Questionnaires weredistributedtorespondentswhichwerethentakentwoweekslater.

2. Secondarydata is dataobtainedby literature, journals, internet, andarticles that have been published. Secondary data relates to thenecessary literature-literature related to the topic of research anddataonthenumberand locationofthebusinessunitofCigondewahfabricBandung.

DataCollectionTechniqueThe samplingmethod in this study is a randommethod (simple randomsampling). A simple random sampling method of members of thepopulationwas taken randomlywithout regard to strata thatexist in thepopulation. In this study, the researchers made businessman ofCigondewahfabricaspopulationandtooksamplesfromthepopulation.Todetermine the sample size, it can be used the following formula:Slovin(JalaludinRakhmat,2004:49)

N

n˭───────(N.d²)+1

Description: n=samplesize

N=populationsize d²=levelofprecisionFromaboveformula,theamountofsamples(n)isasfollows:

727

n˭───────=88people(727.0,1²)+1

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MethodofcollectingdataThe data collection is done using a questionnaire distributed torespondent. The questionnaire is a data collection technique where theresearchersspreadoutaquestionnairecontainingquestionsrelatedtothestudy,thenumberofrespondentswhohadbeenpreviouslydetermined,inorder to get results that can be processed to conclusion in this study.Variables that will be used in this research are the entrepreneurshipmotivation,serviceinnovation,andcompetitiveness.Entrepreneurialmotivation variablesweremeasuredby five indicatorsofsuccess motive, motive of self-regulating and status, financial securitymotive,motiveofinnovationandachievement,personaldevelopmentandleadershipmotive.After theservices innovationvariablesweremeasuredby three indicators items, namely new methods in the service process,provisionofsupportinginfrastructureservices,newmethodsofmanagingworkplace performance. Variable of competitiveness was measured bythree indicators items,namely the competitivenessofproducts to sell asmuch as possible, get the customer's competitiveness, andcompetitivenesstoprovidethebestqualityservice.The questionnaire is based items and the method used isLikert'sSummantedRating(LSR),Thefollowingisatableofthescaleofthemeasurementsmade,with5-pointratingscale:

Information Score

StronglyDisagree(SD) 1Disagree(D) 2Neutral(N) 3Agree(A) 4

StronglyAgree(SA) 5DataAnalysisAfterthedatafromthequestionnairehavebeenacquired,thewriterswillanalyzethedatawithhelpfromSPSSsoftwaretoknowthecorrelationanddeterminationofproductattributesandaftersalesservicetowardbuyingdecision.Theanalysisconsistsofthestepsbelow:1. Validitytest

Testthevaliditymeanstheextenttowhichtheaccuracyofmeasuringinstruments in doing measuring function. Tests are conducted to

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determine the level of validity of the instruments collected by theresearcherswithawaytocorrelateanyvariablescoretheanswersoftherespondentsthenthecorrelationresultsthanthecriticalvalueatsignificancelevelof0.05and0.01.

2. ReliabilityTestReability test uses Alpha Cronbanch. Alpha Cronbanch method isfrequently used to test the reliability of an instrument research andAlphaCronbanchgoodvalueisaminimumof0.70.

3. PathAnalysisPathanalysis isananalytical toolusedtotrackthe impacts (directorindirect)ofindependentvariablestodependentvariable.Inthisstudy,designanalysisisillustratedthroughpathanalysisusingSPSSwiththefollowingsteps:

a. AnovaX1.X2tocompetitivenesstowards(Y)b. CoefficientX1.X2tocompetitivenesstowards(Y)c. SummaryX1.X2tocompetitivenesstowards(Y)

4. Sometestingstepspathoftheanalysisareasfollows:1. Formulateahypothesisinstructuralequationstructure:

Y=pyx1X2+pyx2X2+py12. Calculatepath coefficientsbasedon standardized regression

coefficient, the regression coefficient is calculated on thebasis of data that have been set in raw numbers or Zscore(datasettotheaveragevalue=0andstandarddeviation=1)

5. Calculatetheoverallpathcoefficients,significancetesting:SPSSa. If thevalueprobability0.1 is less thanorequal to thevalue

probability sig or [0,1≤ sig], then Ho is accepted and Ha isrejected,itmeansinsignificant.

b. If the value probability 0.1 is greater than or equal to thevalueprobabilitysigor[0,1≥sig],thenHoisrejectedandHaaccepted,meaningsignificantly.

6. Calculatepathcoefficientsindividuallytodeterminethesignificanceoftheanalysisofthelinewiththeratiobetweentheprobabilityvaluesof0.001 with a probability value Sig with the basis for a decision asfollows:

a. If thevalueprobability0.1 is less thanorequal to thevalueprobability sig or [0,1≤ sig], then Ho is accepted and Ha isrejected,itmeansinsignificant.

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b. If the value probability 0.1 is greater than or equal to thevalueprobabilitysigor[0,1≥sig],thenHoisrejectedandHaaccepted,meaningsignificantly.

Pathanalysisinthisstudycanbedescribedasfollows:ρ!!!!Y

PathAnalysis

Basedonthepathanalysisabove:

Y=f(!!!!)Y=ρ!!! + !!!! + !

Y =competitivenessvariableρ!!! + !!!! =isadirectrelativemagnitudeoftheeffectonYρ!!!! =theX1toX2ε =isanotherfactormeasurementerrorCalculatethevariablesXwithvariabledependendandindependend.

r!1 y = (! X!Y) − ( X!). ( Y){n X!! − ( X!)!}. { n Y! − ( Y)!}

ThenthestepstakentoanalyzeusingthepathcoefficientaredoublecorrelationformulainRiduwan(2008:62-63)

EnterpreneurshipMotivation(x1)

ServiceInnovation(x2)

Competitiveness(y)ρ!!!

ρ!!!

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!!!!!! = !²!! + !² !! − 2 !!!! . (!!!!). (!!!!!) 1 − r²!!!!

Significantextentα=0,15. 5.Hypothesistest(t-testandF-test)

TheF-test resultsonSPSSoutput canbe seen in theANOVA table. F-testresultsshowthat independentvariablessimultaneouslyaffectthedependentvariablewhenP-value issmallerthanthespecified levelofsignificant,orF-countisgreaterthanF-tableThe results of this test on SPSS output can be seen in Table P-value(column sig) for each independent variable, if the P-value is smallerthan the specified level of significant, or t count larger than t-table(calculatedfromtwo-tailedα=5%df-k,kisthenumberofindependentvariables)hasasignificantmeaning.

6. ClassicassumptiontestNormality test aims to test whether the regression model, theconfounding variable has a normal distribution. How to test thenormalityof residualandnon-parametricstatistical tests,Kolmogorof-Smirnov(K-S)canbeusedSPSS.Fromthetestresults,itcanbeseenifthe SPSS shows sig> α (significance level = 0.05), it can be concludedthatthesampledatawerenormallydistributed.

ResearchPurposeandLimitation

The purpose of this research is to study the impact of entrepreneurialmotivation and service innovation to the competitiveness. This studyhaslimitationsinsampleintermsofcoveragearea,whichisjustinBandungorWest Java,variablesusedfor thisstudyarevery little, inexampleofonlythree variables, and therefore in the further research can add othervariables related to competitiveness so as to provide a broader pictureaboutthefactorsthataffectcompetitivenessinadditiontothemotivationof entrepreneurship, innovation services. Total population used in thisstudyisonlyonetypeofcompanythatisafabric’straderatCigondewah.Futurestudiesareexpectedtomultiplythenumberofsamplesthatwillbeused, so that itwill approach the description of the results closer to theactual conditions, it is expected in future studies to use other types ofcompaniesasresearchobjects.

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References

Amabile T.M. (1998) “How to kill Creativity” Harvard Business Review,September,-October.

BhideA. (1994) “HowEntrepreneursCraft Strategies thatWork”HarvardBusinessReview,March–April.

Bridges S. O’Neill K. and Cromie, S. (2003) Understanding Enterprises:Entrepreneurship and Small Business. New York: PalgravaMacMillan.

ChakravortiB.(2004)‘TheNewRulesforBringingInnovationstoMarkets”.HarvardBusinessReview,March.

CreativityatWork;ArticlesandTips.http:www.creativity@work.com/articlescontent/whatis.htn.DruckerP.F. (1985) InnovationandEntrepreneurship, London: PanBooks

Ltd.lengesforthe21Century.London:ButterWorthHeinemann.Harris R. (1998) Introduction To Creative Thinking. www.vittualsalt.com.

InnovationandGoal–freeLiving–StephenShapiro.http”//www-24-27innovation.com/innovationorcle.htn.

Krueger, N. F. Jr. (2000). The cognitive infrastructure of opportunityemergence.EntrepreneurshipTheoryandPractice,24(3),5-23.

(SikszentMihalyi,C.(1997)Creativity:FlowandthePsychologyofDiscoveryandInvention,NewYork:HarperWillCollinsPublishers,Inc.

Okpara F.O. (2000) Entrepreneurship: Text and Cases. Enugu: PrecisionPrintersandpublishers.

Porter, E. &Millar, V. E. (1985). How information gives you competitiveadvantage.HarvardBusinessReview,63(4),149-159.

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CREDITANALYSISUSINGTHECHAIDANALYSIS:CASESTUDYOFPTBFI

FINANCE,TBK

PanjiDwisatiaMunajat,StudentID.12020150013,

panjidwisatia@gmail.comSyamsuRijal,StudentID.120820150032,errijal@gmail.com

MasterofManagementProgram,FacultyofEconomicsandBusinessUniversitasPadjadjaran(MMFEBUNPAD)

I.INTRODUCTION

I.1.Background

Finance companies are required to assess, monitor and perform thenecessarystepsagainstaccountsreceivablefinancingsothatthequalityofthe receivables financing isalwaysgood in the formof credit channeling.(IndonesiaFinancialServicesAuthority,2014)Thedefinitionof"credit"derivesfromaRomanwordi.e.credere,meaningtrustandtruth.Theelementoftrustconsidersthecharacterofapplicant'screditDjinartoinRozi&Yahya,(2012).Creditisdefinedasobtaininggoodsbypayingmortgageorinstallmentatalaterdateorobtainingloanpayoffmoney made at a later date with installments in accordance with theagreement(KasmirinRozi&Yahya,2012)(Kasmir,2004).Creditriskisadisadvantagethatcanpotentiallycausetherefusalofcreditorinabilityoftheobligortopayoffdebtsontime(CoyleinRozi&Yahya,2012).Creditriskasanexposurehasthepotentialtothreatencompany'scapitalandearnings,whichwillbebroughtaboutduetothefailureofthedebtor (obligator) tomeet the requirements contained in thecontractofthecompany(TambupoloninRozi&Yahya,2012).In line with the increasing level of competition, currently lots ofconvenience available in accessing a financing. On the one hand, theconvenience encourages the occurrence of increased sales, but on theother hand it may pose a potential risk of Non-Performing Financing onfinancecompanieswhichwill interferewith thestabilityof thesystemoffinancialinstitutions.Indonesia Financial Services Authority (OJK) categorizes the quality ofproblematic accounts receivable financing, i.e. Non-Performing

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Financing/Non-PerformingLoan (NPF/NPL)assubstandard,doubtful,andstalled for motor vehicle financing of which purchase is by makinginstallmentpaymentsandnottakingintoaccountthereserveallowanceofaccounts receivable financing. NPF/NPL is categorized as substandard,doubtful and stalled when the delay in payment of principal and/orinterest have exceeded respectively 90 (ninety), 120 (one hundred andtwenty) and 180 (one hundred and eighty) calendar days. (IndonesiaFinancialServicesAuthority,2014)The overview of financial data of financing institutions released byIndonesia Financial Services Authority (OJK) shows an increase in NPF inthe first quarter of this yearwhen comparedwith theNPFat theendoflastyear.OJKdatashowsthatperDecember2015,theNPFamountedto1.14%whileinMarch2016,thenumberhadincreasedto1.32%.

Table1Non-PerformingFinance(NPF/NPL)ofBankingCompanies

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Meanwhile,theNPFatPTBFIFinance,Tbkalsoexperiencesanincreaseforapproximately6(six)months.

Figure1Non-PerformingFinance(NPF)atPTBFIFinance,Tbk(Dec2015

untilMay2016)

Source:PTBFIFinance,TbkWhy does the issue of Non-Performing Financing (NPF) become soimportant?The impactofNon-PerformingFinancing (NPF)whichexceedsthelimitisbelievedtobecomeaseriousproblemwhichwillinterferewiththe profitability of the company. When profitability declines, then theability of companies in expanding financing is reduced and the rate offundingwilldrop(Firmansyah,2014).In General, a variety of academic literatures provides evidence thatsuggestsastronglinkbetweenmacroeconomicvariablesandmanyoftheNPL. The factors cited by the literatures as significant variables, amongothers areactual interest rate, annualGDPgrowth, annual inflation rate,credit growth, actual exchange rate, and unemployment rate (Messai &Jouini, 2013). Other studies of (Klein, 2013) found that the level of NPLtends to increase when unemployment rate increases, exchange ratedepreciatesandinflationoccurs.I.2.Theformulationofproblem

Basedonthebackgroundthathavebeendescribed,theprincipalresearchproblemsthatwanttobeobservedare:a. HowistheconditionofNPFthatoccursatPTBFIFinance,Tbk?b. WhatarefactorsthataffecttheNPFatPTBFIFinance,Tbk?

1,34%1,49% 1,54% 1,57% 1,52% 1,58%

1,00%1,20%1,40%1,60%1,80%

Des2015Jan2016Feb2016Mar2016Apr2016Mei2016

NPF(%) Linear(NPF(%))

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I.3.Researchobjectives

a. TofindoutthedescriptionofNPFthatoccursatPTBFIFinance,Tbk.b. ToanalyzethefactorsinfluencingtheNPFatPTBFIFinance,Tbk.

I.4.Usefulness

Theusefulnessthatisexpectedtobeobtainedfromthisresearchincludes:a. This research is expected to benefit the policy makers in drafting

variouspoliciesparticularlywithregardtofinancing.b. This research is expected to add insight and benefit for further

researchespeciallywithregardtofinancing.

II.LITERATUREREVIEW

To providae a comprehensive understanding about the theme of thisresearch, the authors will present a review of relevant literatures. Itconsistsoffoundationsoftheory,concepts,definitionsorstudiesofresultsofpreviousresearcheswithsimilarthemes.II.1.TheoreticalOverview

II.1.1.TheconceptofNon-PerformingFinance(NPF)

Basel 2 Accord point 452 states that “A default is considered to haveoccurredwithregardtoaparticularobligorwheneitherorbothofthetwofollowing events have taken place” (Bank Committee on BankingSupervision,2006).• The bank considers that the obligor is unlikely to pay its credit

obligationstothebankinggroupinfull,withoutrecoursebythebanktoactionssuchasrealizingsecurity(ifheld).

• The obligor is past due more than 90 days on any material creditobligationtothebankinggroup.(89)Overdraftswillbeconsideredasbeingpastdueoncethecustomerhasexceededtheadvisedlimitorbeenadvisedofalimitsmallerthancurrentoutstanding’s.

II.1.2.AgeofDebtor

Age of debtor is defined as a quantitative measure that describes thedifferencebetweentheyearofdebtor’sbirthandtheyearatthetimeoffillingdebtorcreditfinancing.

Theageofdebtorsiscalculatedbytheformula

Ageofdebtors=theyearatthetimeoffillingdebtorcreditfinancing–theyearofdebtor’sbirth.

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II.1.3.GenderofDebtor

Genderofdebtor isdefinedasaqualitativemeasure that is recordedoneitherthedebtor’sIDordrivinglicenseatthetimeofthefiling,consistingoftwocategories,namely:maleandfemale.II.1.4.OccupationofDebtor

Occupationofdebtor isdefinedasaqualitativemeasure that is listedonboththedebtor’sIDanddrivinglicenseatthetimeofthefiling,consistingof8categories,namely:• Entrepreneur• Government• Retiree• Student

• Formal• Non-formal• PrivateEmployment,Etc• Others

II.1.5.DomicileofDebtor

Domicileofdebtorisdefinedasaqualitativemeasurethatislistedonboththe debtor’s ID and driving license at the time of filing the territorial bygroupofoperationsofPTBFIFinanceTbk.Debtor'sdomicile iscomposedof11regions,namely:• Region(02)-Sumatra2• Region(03)-Sumatra3• Region(05)-Jabodeta• Region(06)-WestJava• Region(07)-EastJava• Region(08)-Sulawesi

• Region(09)-Kalimantan1• Region(10)-CentralJava• Region(11)-Kalimantan2• Region(12)-WestJava2• Region(15)-Sulawesi2

II.1.6.LenghtofWorkofDebtor

Lenght of Work of Debtors is defined as a quantitative measure that isrecordedinthesurveyreportthatshowsthedebtor'slengthofworkatthetimeoffillingthedebtorfinancing.II.1.7.MaritalStatusofDebtor

Maritalstatusofdebtorisdefinedasaqualitativemeasurelistedoneitherthe debtor’s ID or driving license at the time of filing, consisting of fourcategories,namely:married,widow,widowerandunmarried.

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II.1.8.TotalMonthlyIncomeofDebtor

Total income of debtor is defined as a quantitative measure that isrecordedinthesurveyreportthatshowstheamountofdebtor'smonthlygrossincomeatthetimeoffillingthefinancing.II.1.9.PriceofVehicle

Priceofvehicleisdefinedasaquantitativemeasurethatisrecordedinthefinancing contract between the debtor and PT BFI Finance, Tbk, whichshows the value of the sale and purchase between the debtor and thesupplieratthetimeofloanfinancing.II.1.10.LoantoValue(LTV)Financing(%)

Loan tovalue (LTV) financing (%) isdefinedas theproportionofvalueofdebtor’s accounts receivable to total value of tangible assets that isrecordedatthetimeoffinancingcontractbetweenthedebtorandPTBFIFinanceTbk.II.1.11.LenghtofFinancing(Tenor)

Lenght of financing/tenor is defined as a quantitative measure that isrecordedinthefinancingcontractbetweenthedebtorandPTBFIFinanceTbk.II.1.12.TypeofVehicle

Typeofvehicleisdefinedasaqualitativemeasurethatisrecordedonthedebtor’sidentityintheformofBPKBownershipconsistingof5categories:Sedan,Jeep,Minibus,PickUpTruck.II.1.13.BrandofVehicle

Brandsof vehicle is defined as a qualitativemeasure that is recordedonthe debtor’s identity in the form of BPKB ownership, consisting of 15categories:• BMW• Chevrolet• Chrysler• Daihatsu• Datsun

• Ford• Hino• Honda• Isuzu• Mazda

• MercedesBenz• Mitsubishi• Nissan• Suzuki• Toyota

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II.2.EmpiricalStudy

Researchontheeffectofdebtor’sdemography,assetsandNPFfinancingstructurehasbeenperformedwithmixedresults.Efendi,R.inRozi&Yahya,(2012)analyzedtheextenttowhichthedebtorvariablessignificantlyaffecttheriskofbaddebts.Thestudyconcludesthatthe factors that influence the risk of bad debts from the debtor areoverdue, down payment, tenor, consumer revenue, moral and moralehazard.Suciati,D.inRozi&Yahya,(2012)concludesthatincome(salary),domicile,effective rate, tenor, and net downpayent are the variables thatsignificantly influence the debtor's credit status. As for gender, maritalstatus, age, and the principal amount are the variables that do not havesignificanteffectonthedebtor'screditstatus.A good scoringmodel should give a higher percentage of high scores to‘good borrowers’ and a higher percentage of low scores to ‘badborrowers’. Ang et al. in Yap, Ong, & Husain, (2011) investigated theprofiles of late-paying consumer loan borrowers using variables such asgross amount of loan, age, sex, marital status, number of dependents,yearslivingattheresidence,monthlytakehomepay,monthlytakehomepay of spouse, owned or rented residence, other monthly income, totalmonthly payments on all debts, typeof bank accounts, numberof creditreferenceslisted, lengthofwork,totalfamilymonthly incomepermonth,debt to income ratio, total number of payments on loans, and annualpercentageof interest on loans. Kohet al. in Yap,Ong,&Husain, (2011)used age, annual income, gender, marital status, number of children,number of other credit cards held and whether the applicant has anoutstandingmortgage loan toconstructa credit scoringmodel topredictcredit risk of credit card applicants as bad loss, badprofit and good risk.Abdouetal.inYap,Ong,&Husain,(2011)usedtwentyvariables,someofwhichwere loanamount, loanduration,sex,marital status,age,monthlysalary,additionalincome,houseownedorrented,andeducationlevelforbuilding credit scoringmodels toevaluate credit risk (paidordefault) forpersonal loan. Gschwind in Yap, Ong, & Husain, (2011) concluded thatmining basic tenant data, accounts receivable data, and government-publisheddatacangeneratepredictionsoflatepaymentsofrental.Mavri,Angelis,andLoannouinYap,Ong,&Husain,(2011)usedvariablessuchas

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gender,age,education,maritalstatusandmonthlyincometoestimatetherisk level of credit card applicants. Vojtek and Kocenda in Yap, Ong, &Husain,(2011)providedatableofindicatorsthataretypicallyimportantinretailcreditscoringmodels.Theyclassifiedtheindicatorsasdemographic,financial,employmentandbehavioralindicators.The abovementioned studies serve as guidelines in determining theconceptual frameworkof this study.Thedataonbehavioraland financialindicatorswerenot available.Hence,onlydemographic andemploymentindicatorswereconsidered.Thenumberofcarsownedisusedasaproxyof financial indicator. The demographic indicator consists of age, gender,maritalstatus,districtofaddress,race,andnumberofdependents.Thesevariables typically are useful in capturing various regional, gender, andotherrelevantdifferences.Forexample,itisoftenfoundthatolderwomenarelessriskythanyoungmen.Ingeneral,theriskofdefaultdecreaseswithage and is also higher formarried applicantswith dependants. Vojtek &KocendainYap,Ong,&Husain(2011)findthatrelationslikethiscanhelpto better discriminate between good/bad applicants. The employmentindicatorconsistsofoccupationandworkingsector.II.3.ConceptualFramework

The relationship among the payment status of borrowers withdemographic data of debtor, the debtor and the data of asset financingstructureissomethingverycomplex.Manystudiesshowthatdemographicdata have significant effect on the payment status of debtors. However,several other studies found that the financing structure or assets ofdebtors actually have positive impacts on the status of payments. Thisresearch tries to see which variables that significantly influence thepayment status of borrowers in PT BFI Finance Tbk. Debtor’s paymentstatusexaminedinthisstudyisthedefaultstatusasdefinedbytheBasel2accord.In this study, the dependent and independent variables refer to theresearchesbyRozi&Yahya(2012),thatarethefactorsthat influencetheriskofbaddebts fromdebtorsnamelyconsumer income,overdue,downpayment,tenor,moralandmoralehazard,domicile,andeffectiverate.Referring to its title, this study will examine the phenomenon of non-performing financing thatoccurrsatPTBFIFinance,Tbk.Specifically, this

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research attempts to highlight the relationship among variables ofconsumer income, overdue, down payment, tenor, moral and moralehazard, domicile, and effective rate to the level of non-performingfinancing. Furthermore, comparison will be done to examine whichvariable has a significant relationship to the level of non-performingfinancing.Based on the study of theories and previous studies which have beendescribed,atheoreticalthinkingframeworkcanbedrawnupinthestudy.

Figure2.Theframeworkofthought-provokingresearch

II.4.Hypothesis

Based on the review of theories and previous researches, the researchhypothesesarestatedasfollows:• AgeofdebtorhaspositiveeffectonNPF• GenderofdebtorhaspositiveeffectonNPF• OccupationofdebtorhaspositiveeffectonNPF• DomicileofdebtorhaspositiveeffectonNPF• LengthofworkofdebtorhaspositiveeffectonNPF• MaritalStatusofdebtorhaspositiveeffectonNPF• TotalmonthlyincomeofdebtorhaspositiveeffectonNPF• PriceofvehiclehaspositiveeffectonNPF• LTVfinancinghaspositiveeffectonNPF• LengthoffinancinghaspositiveeffectonNPF• TypeofvehiclehaspositiveeffectonNPF• BrandofvehiclehaspositiveeffectonNPF

Identi@icationoffactorsthataffectNPF

variablesDebtor

demographicdata,debtorassetdataand@inancingstructure

Non-PerformingFinancing(NPF)

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III.RESEARCHMETHODOLOGY

Data used in this study are the internal data of PT BFI Finance, Tbk, i.e.reporting detail data derived from the datawarehouse to be uses as amonitoringmechanismforriskmanagementdivision.Thereportingdetaildataprovidevarious informationofdebtors, ranging from the identityofdebtorsuchasgender,age,maritalstatusandoccupation,tothevehicleofdebtorcoveringtheprice,brandandtypeofvehicle.TheDatausedaredebtorswhoareactivein2014andhavebeenrecordedfor at least 6months so themagnitudeof the debtor's default and non-defaultcanbeexamined.Thisresearchfocusesonthevariablesofdebtor’sdemographic data, debtor's assets and structure of financing which areconsideredsignificantlyinfluentialondebtordefaultratio.In this research, the thedependentvariable ispaymentstatus,consistingofbinaryvariableswithtwocategoriesi.e.defaultandnon-defaultthatfitsthedefinitionofBasel2above,whiletheindependentvariablesconsistof:Debtor’sinformation:• Age• Gender• Occupation• Domicile• Lengthofwork• MaritalStatus• TotalmonthlyincomeAsset’sinformation• Priceofvehicle• Typeofvehicle• BrandofvehicleStructureoffinancing• LoantoValue(LTV)financing(%)• Tenor

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III.1.ResearchMethodology

In this study, the quantitative method used is the decision tree model(CHAIDAnalysis).Yap,Ong,&Husain (2011)mentionedthatadecisiontreemodelconsistsofasetofrulesfordividingalargecollectionofobservationsintosmallerhomogeneousgroupwithrespecttoaparticulartargetvariable.Thetargetvariableisusuallycategoricalandthedecisiontreemodelisusedeithertocalculatetheprobabilitythatagivenrecordbelongstoeachofthetargetcategory, or to classify the record by assigning it to the most likelycategory. Decision tree can also be used for continuous target variablealthoughthereareothertechniquessuchasmultipleregressionswhicharemore suitable for such variable (Berry & Linoff in Yap, Ong, & Husain,2011).Given a target variable and a set of explanatory variables, decisionalgorithms automatically determine which variables are most important,and subsequently sort the observations into the correct output category(Olson& Yong in Yap, Ong, & Husain, 2011). The common decision treealgorithms in data mining software are chi-square automatic interactiondetector (CHAID), classification and regression tree (CART) and C5. CARTusesginiasthesplittingcriteriawhileC5usesentropy.Meanwhile,CHAIDuses chi-square as the splitting criteria in Berry & Linoff (Yap, Ong, &Husain,2011).

III.2.ResearchModelandCHAIDAnalysis

III.2.1.ResearchModel

Thissectiondiscusses theconstructionof theCHAIDdecisiontreemodel.Thedependentvariable,whichispaymentstatusiscodedasDefaulter=1andNonDefaulter=0.SPSS_EnterprisesoftwarewasusedforbuildingtheCHAIDdecisiontreemodel.Thisdataminingsoftwareprovidesagraphical-user-interface (GUI) workspace whereby nodes (tool–icon) can be easilyselected from a tools palette and placed into the diagram workspace.Nodesare thenconnected to formaprocess flowdiagramthat structureanddocumenttheflowofanalyticalactivities.Thisfigureshowstheprocessflowdiagramandtheprocessbeginwiththesampledatanode.

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Figure3.ProcessFlowDiagram

ThesampledatanodeisconnectedtotheDataPartitionnodetosplitthedata into trainingandvalidationsample.Thesampledataarepartitionedat 70:30 that is 70% for training (used for model building) and 30% forvalidationsample.Operationalizationofvariablesthatisusedinthisresearchisasfollows:

Table2.OperationalizationofVariables

No Variabledescription Variablename RoleMeasurement

level

1. Ageofdebtor CustAge Input Interval2. Genderofdebtor Gender Input Nominal3. Occupationof

debtorCustOcc Input Nominal

4. Domicileofdebtor CustLoc Input Nominal5. Lengthofworkof

debtorLengthWork Input Interval

6. Maritalstatus MerStat Input Nominal7. Totalmonthly

incomeofdebtorCustInc Input Interval

8. Priceofvehicle Price Input Interval9. LTVfinancing(%) LTV Input Interval10. Tenor Tenor Input Interval11. Typeofvehicle AssetType Input Nominal12. Brandofvehicle Brand Input Nominal13. Default/Nondefault StatusDefault Target Binary

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III.2.2.CHAIDAnalysis

GilbertRitschardinYap,Ong,&Husain(2011)saysthat,asindicatedbyitsname,CHAIDusesaChi-squaresplittingcriterion.Morespecifically,itusesthep-valueof theChi-square. Inhis1980paper inAppliedStatistics,Kassdiscussesonlythecaseofacategoricaldependentvariable.Themethodis,nevertheless, most often implemented with an option for handling alsoquantitativedependentvariables.Thecriteriaareinthatcasethep-valueofthe F statistic for the difference in mean values between the g nodesgeneratedbythesplit:

! = !""/(! − 1) !""/(! − !)� ! ! − 1 , (! − !)As analternative,permutation test (Kass in Yap,Ong,&Husain, 2011)orχ2approximation(ScottandKnottinYapetal.,2011)canbeused.ThemaincharacteristicsofCHAIDthatcontributetoitspopularityare:a. At each node, CHAID determines for each potential predictor the

optimaln-ary split itwouldproduce,and selects thepredictoron thebasisoftheseoptimalsplits.

b. CHAIDusesp-valueswithaBonferronicorrectionassplittingcriteria.Resorting to p-values as growing criteria provides stopping rules thatautomatically account for statistical significance. Thresholds are naturallysettousualcriticalvaluesconsideredforstatisticalsignificance,namely1%,5% or 10%. Such p-value criteria are sensitive to the number of casesinvolvedinthesplitandtendtoavoidsplittingintotoosmallgroups.NotethatthoughCHAIDpopularizedtheideaofusingp-valuesforselectingpredictors, itwas not the first attempt to do so. Asmentioned above, p-values were also used by Press et al. in Yap et al. (2011) in their IDEAsystem.TheoriginalityofthemethodproposedbyKassis,however,thatforevaluating the significance of each split it applies first a Bonferronicorrectiononthep-value.Wewillexplainlaterinwhatthisconsists.ThemostoriginalcontributionofCHAIDisnodoubtthefirstpoint,i.e.theideaoflookingattheoptimaln-arysplitforeachpredictor.Firstly,asshownfromTable1,mostmethodsconsideredonlybinarysplits.Thosethatallowforn-arysplits,suchasthemethodbyHuntetal. inYapetal. (2011),setthenumberofsplitstothenumberofcategoriesofthepotentialpredictor,whichcouldbeparticularlyunsuitedforpredictorswithmanycategories.

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REFERENCES

Bank Committee on Banking Supervision. (2006). InternationalConvergence of Capital Measurement and Capital Standards. Bankfor International Settlements. Basel: Bank for InternationalSettlements.Retrievedfromhttp://www.bis.org/publ/bcbs128.pdf

Indonesia Financial Services Authority. (2014). Peraturan Otoritas JasaKeuanganNomor29/POJK.05/2014,1–29.

Kasmir. (2004). The Banking Management. Jakarta: PT Raja GrafindoPersada.

Klein,N.(2013).Non-PerformingLoansinCESEE:DeterminantsandImpacton Macroeconomic Performance. IMF Working Papers, 13(72), 1.http://doi.org/10.5089/9781484318522.001

Messai,A.S.,& Jouini,F. (2013).MicroandMacroDeterminantsofNon-performing Loans. International Journal of Economics and FinancialIssues,3(4),852–860.http://doi.org/10.1300/J079v27n04_02

Rozi,D.J.F.,&Yahya,K.(2012).AnalisaRisikoKreditSepedaMotorPadaPT. X Finance (Studi Kasus Kantor Cabang Wilayah Gresik danLamongan),1–6.

Yap, B.W., Ong, S. H., & Husain, N. H.M. (2011). Using datamining toimprove assessment of creditworthiness via credit scoringmodels.Expert Systems with Applications, 38(10), 13274–13283.http://doi.org/10.1016/j.eswa.2011.04.147

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ITGOVERNANCEININDONESIA’SBANKS:ITVALUEANDRISK

ASSESSMENTPERSPECTIVE

AuliaMalitasari,StudentID.120820150036,aulia.malitasari@gmail.comEvanKurniaR,StudentID.120820150002,evan_kr@yahoo.co.id

MasterofManagementProgram,FacultyofEconomicsandBusiness,UniversitasPadjadjaran

I.Introduction

Information technology has brought together computation,communications,knowledge,eveninformation.Thisdefinitelychangesthewaywelive,thinkandworkaswell.Thatmakesinformationtechnologyasagreatessence inbankingsystem. Informationtechnologyhasbecomeacriticalbusinessresourcebecauseitsabsencecouldresultinpoordecisionsandultimately business failure. Technology has openedupnewmarkets,newproducts,newservicesandefficientdeliverychannelsforthebankingindustry.Ithasalreadychangedtheinternalaccountingandmanagementsystemsofbanks.Onlineelectronicsbanking,mobilebankingandinternetbankingarejustafewexamples.IT revolution has set the stage for unprecedented increase in financialactivityacrosstheglobe.Theprogressoftechnologyandthedevelopmentofworldwidenetworkshavesignificantlyreducedthecostofglobalfundstransfer.Computersaregettingmoresophisticated.Theyhavegivenbanksapotential they couldonlydreamabout andhave givenbank customershigh expectations. The changes that new technologies have brought tobanking are enormous in their impact on officers, employees, andcustomers of banks. Advances in technology are allowing for delivery ofbankingproductsandservicesmoreconvenientlyandeffectivelythaneverbefore - thus creating new bases of competition. Rapid access to criticalinformationandtheabilitytoactquicklyandeffectivelywilldistinguishthesuccessfulbanksofthefuture.Banksgainavitalcompetitiveadvantagebyhavingdirectmarketingandaccountablecustomerserviceenvironmentaswellasnew,streamlinedbusinessprocesses.Consistentmanagementanddecisionsupportsystemsprovidethebankthatcompetitiveedgetoforgeaheadinthebankingmarketplace.

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TechnologyAssessment.ThediffusionandsuccessfulimplementationofITinIndonesia’sbanksarenot easy processes. Indonesia’s banks are facing enormous challenges inmastering the new tools provided by IT. An important constraint to thediffusion and successful implementation of IT is the telecommunicationinfrastructure, while other obstacles are managerial practices andorganizationalweaknesses.Todeterminewhetherabankisdeliveringqualityservicestoitscustomers,it should perform a self-assessment of its capabilities. This assessmentshould encompass three major areas: strategy and planning, applicationdevelopment, and systemsmanagement. In addition, it should conduct acustomersurveytogaugewhetheritscustomersperceiveitthesamewayitperceivesitself.Averysimple,effectivewaytoconductaself-assessment istodeterminethe critical elements in these three areas for delivering good service tocustomers. Then, decide how important these elements are to theorganization and how effectively the organization currently performsthem. The gap between importance and effectiveness should help indetermining the priority for correcting some of the issues so that theimportanceandeffectiveness ratings converge. Figure1 is anexampleofkeyelementsinthethreeareasplusanassessmentfromcustomers.All managers in the organization should participate in taking the self-assessment.Oncetheresultsaretabulated,thelargestgaps(accumulatedtoonedecimalplace)willshowthepriorityoftheitemstofocuson.Theseitems become initiatives, or projects within an initiative, during theintiative-planningstep.

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Figure1.ITAssessmentExample

ITGovernance

IntermsofITgovernance,therearetwowaystolookatit.Oneistoviewitasasub-setofoverallcorporategovernanceandtheotheristoseeitasadistinct concept/ discipline by itself. There are arguments on both sides,but the former looks more appropriate. Corporate governance, with itsholistic definition covering fiduciary, strategic leadership/guidance andethicsrelatedroles,isinclusiveofITstrategyandITmanagementoversightasITsystemsandinformationareasvaluableasanyotherresourcesforabank, and may be more. Dependence on these resources and systemsmake it imperative that these are managed and governed through anappropriateITgovernance(ITG)framework.Thereareseveralalternativesof ITG frameworks (over 14 as per 2009 research), with many moreevolving,ofwhichsuitabilitydependsontheoverallecosysteminwhichabank operates. In an early research on governance, IT governancemechanisms were categorized into three: decision making, alignmentprocesses and communication approaches. Some ITG frameworks like

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Cobit(ControlObjectivesforInformationandRelatedTechnologies),COSO(CommitteeofSponsoringOrganizationsoftheTreadwayCommission)andITIL(InformationTechnologyInfrastructureLibrary)provideguidancefrommicrolevelonwards.II.LiteratureReviewandResearchFramework

ITGovernance

IT governance is the organizational capacity exercised by the Board,executivemanagementandITmanagementtocontroltheformulationandimplementationofITstrategyandinthiswayensurethefusionofbusinessandIT(Grembergen:2002).ITgovernanceistheresponsibilityoftheboardofdirectorsandexecutivemanagement.Itisanintegralpartofenterprisegovernanceandconsistsofthe leadership and organizational structures and processes that ensurethattheorganization’sITsustainsandextendstheorganization’sstrategiesandobjectives.(Institute:2003).The purpose of IT governance is to direct IT endeavor, to ensure that ITperformancemeetsthefollowingobjectives:

Figure2.ITPerformanceObjective

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a) Strategic alignment: Linking business and IT so they work welltogether.Typically,thelightningrodistheplanningprocess,andtruealignment can occur only when the corporate side of the businesscommunicateseffectivelywith line-of-business leadersand IT leadersaboutcosts,reportingandimpacts.

b) Value delivery: Making sure that the IT department does what’snecessary to deliver the benefits promised at the beginning of aprojector investment.Thebestway togetahandleoneverything isby developing a process to ensure that certain functions areaccelerated when the value proposition is growing, and eliminatingfunctionswhenthevaluedecreases.

c) Resource management: One way to manage resources moreeffectively is toorganize staffmoreefficiently—forexample,by skillsinstead of by line of business. This allows organizations to deployemployeestovariouslinesofbusinessonademandbasis.

d) Riskmanagement:Institutingaformalriskframeworkthatputssomerigor around how ITmeasures, accepts andmanages risk, aswell asreportingonwhatITismanagingintermsofrisk.

e) Performancemeasures: Putting structurearoundmeasuringbusinessperformance.OnepopularmethodinvolvesinstitutinganITBalancedScorecard,whichexamineswhereITmakesacontributionintermsofachieving business goals, being a responsible user of resources anddevelopingpeople.Itusesbothqualitativeandquantitativemeasurestogetthoseanswers.

IT governance is also a process in which the IT strategy drives the ITprocesses, which obtain resources necessary to execute theirresponsibilities. The IT processes report against these responsibilities onprocess outcome, performance, risks mitigated and accepted, andresourcesconsumed.Thesereportsshouldeitherconfirmthatthestrategyis properly executed or provide indications that strategic redirection isrequired(figure2).TheoptionsforITGovernanceframeworkare:a) CoBIT: This framework, from the Information Systems Audit and

Control Association (ISACA), is probably the most popular. Basically,it’sasetofguidelinesandsupportingtoolsetforITgovernancethatisacceptedworldwide.It’susedbyauditorsandcompaniesasawaytointegratetechnologytoimplementcontrolsandmeetspecificbusinessobjectives. The latest version, released in May 2007, is CoBIT 4.1.

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CoBIT iswell-suited fororganizations that focuson riskmanagementandmitigation.

b) ITIL:TheInformationTechnologyInfrastructureLibrary(ITIL)fromthegovernment of the United Kingdom runs a close second to CoBIT. Itoffers eight sets of management procedures in eight books: servicedelivery, service support, service management, ICT infrastructuremanagement, software asset management, business perspective,securitymanagement and applicationmanagement. ITIL is a good fitfororganizationsthatconcernaboutoperations.

c) COSO: This model for evaluating internal controls is from theCommitteeofSponsoringOrganizationsoftheTreadwayCommission.It includes guidelines on many functions, including human resourcemanagement, inbound and outbound logistics, external resources,information technology, risk, legal affairs, the enterprise, marketingand sales, operations, all financial functions, procurement andreporting. This is amore business-general framework that is less IT-specificthantheothers.

d) CMMI:TheCapabilityMaturityModelIntegrationmethod,createdbya group from government, industry and Carnegie-Mellon’s SoftwareEngineering Institute, is a process improvement approach thatcontains22processareas. It isdivided intoappraisal,evaluationandstructure.CMMIisparticularlywell-suitedfororganizationsthatneedhelpwithapplicationdevelopment, lifecycleissuesandimprovingthedeliveryofproductsthroughoutthelifecycle.

ITValue

ITdepartmentsthatspendtimeandefforttocalculatethebusinessvalueof offered services could explain how IT donates to strategic triumph ofcompanies. When value of IT is calculated via management andshareholder benefits, return on investment, net present value andemployeeproductivitygrowth,departmentiscapabletoshowitskeyrolein guaranteeing the success of company. The use of quantitative oreconomicinformationhelpsinshowingtheimpactofITonoutcomeofthecompany.ITsolutionprovidersmustclearlydefinethevaluetheyaddanddeliverineachofthevalue-chainelementsinwhichtheycaneffectivelycontribute.Theyneed toestablish their valueandcustomer relationshipsaside fromtheirvendorrelationships.Armedwithdefinedvaluepropositions,solution

233

providerscanbetterleveragetheirrelationshipswithotherconstituentsinthevaluechain,includingvendors.Solutionprovidersmustalsounderstandthattheyhavepowerinthechain,andmust better leverage that power for increased opportunity. In valuechains,thepartyclosesttothecustomertypicallyassumesthepowerrole.In many market segments, the solution provider fosters the customerrelationship. In order to solidify their positions in and optimize theircontributionstotheITchannelvaluechain,solutionprovidersshould:a) Strategize new opportunities. The ability to build an effective and

comprehensive strategy for the business is critical to success. Thestrategyprocessmust includetheabilitytoregularlyassessemergingtechnologies, markets and trends, resulting in a well- documentedbusinessplan.

b) Crystallizevaluepropositions.Determinewhatyouwanttobeknownfor, how your value propositions remain sustainable over time andhowitdistinguishesyouinthemarket.

c) Build partnering competencies. This requires a commitment ofresourcesandbudget, aswell asa top-down, comprehensive shift inthe attitude and approach the company has toward partnering andyourplaceinpartnermodels.

d) Narrow focus. Identify a finite and manageable set of offerings andpartnershipsonwhichtofocus.Bydoingso,youwillbuildcompetencyandenhancethevalueyoudeliver.

e) Conduct joint planning. Build comprehensive, multicomponentbusinessplansfocusedonmutualvalue-chainopportunitieswithallofyour preferred vendors. A solution provider that has narrowed itsfocus and defined its unique value proposition should find a willingvendoraudienceforthisstep.

f) Retoolsalesmodels.AkeyroleofsolutionprovidersintheITchannelvalue chain is the "sales face" for the collaborative solution. Thus,solutionprovidersmustensurethatthesalesmodelstheyemployandthecompetenciesoftheirsalespeopleareappropriate.

g) Improve business operations. Gartner predicts that 30 percent oftoday's channel companies will no longer exist by 2007. Ineffectivemanagement will be a key cause. Solution-provider executives musteitherdeveloporrecruittheskillsrequiredtoensurethatthebusinessoperationsoftheircompaniesaresound.

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MeasuringITValueinbusiness

MeasuringITValueisimportantbecauseITconsumessignificantresourcesrelativetootherfunctionsbecauseofthecosttooperateandmanagetheIT infrastructure and the uniqueness of IT throughout most modernorganizations.Even ifbusinessesminimized their IT-supported innovation(a risky strategy) there would be ongoing costs for networks, systems,applications and highly skilled workforce. IT Value purposes are to getvaluesfromITinvestments,tomaximizethelikelihoodofthesuccessonITinvestmentsandtocontrolallITinvestments.No corporation should initiate or prolong an IT system without a clearbusiness reason for doing so. And only in the context of that businessprioritycanthevalueofsystembemeasured.Thinkofthebusinesspriorityasthemostimportanttoporbottom-linepayoffthesystemorinitiativeisexpected to provide the business. This must be a value that drives thesuccessofthebusinessandshouldbeexpressedasmeasuresthatmattertotheCEOorboardofdirectors,suchasrevenuegrowth,protectingfuturerevenues,costreduction,futurecostavoidanceorregulatorycompliance.Whileasystemmaygeneratemanykindsofvalue,decidingwhichvalueisnecessary in order to ensure alignment with strategy, to make sure thesystemorinitiativemeetsthebusinessexpectationandtrytoclarifywhichmetricsandperhapswhichstakeholdersaremostimportant.ITexecutivesmayalsowant to identifyandmodel thesecondor thirdmost importantpayoff, in order to more broadly measure the value of the system andmakesureotherexpectationsaremet.MeasuringITValuestepsare:

PrimaryBusinessValue

Stakeholders The stakeholders at business-value level are the topexecutives responsible for top- and bottom-line growthand for creating shareholder value: the CEO, CFO,directors,andultimatelyshareholdersthemselves.

Metrics It is critical to keep inmind that the stakeholders at thislevel are looking for business metrics-the kinds ofmeasuresthatmightbefoundinanannualreport,suchasrevenues, net income, earnings per share and return ofassets. If the primary value is cost savings, then the costsavings achieved at the other three levels are added

235

together.Explanation This is the measurable result of every system’s business

priority-the sum total of the value created by system,troughcostsavingsattheinternalITandbusiness-processlevels, and through revenues from customers or capitalinvestments.Thismaybeexpressedeitherasanamountorasagoalachieved.

CustomerValue

Stakeholders Unlikeotherstakeholders,payingcustomer’sownsenseofvalue is based primarily on perceptions, not quantitativemeasures. Employee should track those perceptionstroughsurveys,focusgroupsandadvisorypanels.

Metrics Measures such as customer satisfaction, retention,profitability and service levels are critical in judgingwhetherbusinessprocessesareperformingwellenough.

Explanation This is the value to paying customers- retailers,distributors, business or consumers – of the product orservice created by the business processes underinvestigation. Without customers, there can be norevenues, improved profitability or increases in marketshare. Poor customer satisfaction can also lead toincreasedcoststhroughproductreturnsandservicecalls.

BusinessProcessValue

Stakeholders The line-of-business executives responsible for, orbenefitingfrom,thesebusinessprocesses.Theyeithersetthemetricsthemselvesoradvicetousetomeasurevalue.

Metrics Cost andproductivitymetrics includedollars-, labor-, andtime-per-goodorprocesscycle.Revenue-orientedmetricslookatincreasesinsales,productsoritemscreated.

Explanation Thisisthevaluecreatedbybuilding,improvingorloweringthe cost of processes that make it possible to providecompetitiveproductsandservicesandgenerateincomeorlower costs. Include only those business processes thatdependson the IT initiativeor systemto runatallor runoptimally.

ITValue

Stakeholders The IT executives responsible for building and efficientlyrunningthesystemof initiativesunder investigation.They

236

work with or under the CIO to set IT internal metrics,keepinginmindtheprimaryvalueofsystem.

Metrics Explanation At this level, value is created by building, operating and

improving an efficient, effective information system or ITorganization that enables newormore effective businessprocesseswhileminimizingcosts.

Table1SystemorinitiativeofBusinessPriority

a) Makesurethebusinesspriorityofthesystemyouareinvestigatingisclearly understood by all stakeholders. If there is more than onebusinesspriority,rankthem.

b) Define the value you are looking for, given the system’s businesspriority. Do this for each value level – internal IT, Business Process,Customer and Business Value. If there is more than one priority,repeatthisstepforeachone.

c) Select themetrics formeasuring that value.Do thiswith thehelpofthestakeholdersatthetopofthepyramid:businessvalue.Whilecostsavingsatany level canbecountedasbusinessvalue,otherkindsofvaluebestthoughtofassecondarybenefitsthathelpcreatebusinessvalue.

Risk

Risk is the possibility of an act or event occurring that would have anadverse effect on the organization and its information systems. Risk canalso be the potential that a given threatwill exploit vulnerabilities of anasset or group of assets to cause loss of, or damage to, the assets. It isordinarily measured by a combination of effect and likelihood ofoccurrence.Inherentriskreferstotheriskassociatedwithaneventintheabsenceofspecificcontrols.Residualriskreferstotheriskassociatedwithaneventwhen the controls inplace to reduce theeffector likelihoodofthateventaretakenintoaccount.Sixkeyconcepts toValueRiskwith theexamplesare (Harris,HerronandIwanicki:2008)• Informationfordecision:howfastcanIrun?Howfastcantheyrun?• Valueformoney:NoneedtopayforaFerrariifapairofsneakerswill

dothejob

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• Risk management: Is there one bear or two bears? Having thosesneakersalready!

• Process:Don’ttripoveruntiedlaces• Responsiveness: Does the situation demand me to run? Do I have

plentytimetoputonmysneakersbeforethebearsreachme?• Innovation:What if I am the slowest runnernext timeevenwithmy

sneakerson?

III.ResearchMethodology

ResearchDesign

Inthisresearch,qualitativeapproachisusedastheresearchmethod.Datacollection is conductedusingprimarydata,bydistributingquestionnairesandinterviewsrelatedtotheresearcheffort.FamiliarandcommonlyusedIT governance frameworks provided the guidelines to design acomprehensivequestionnairewhichmatchesimportantfactorsassociatedwithITgovernanceinthebankswhichareratedexcellentwhilegoverningtheITafteradaptation.Different questions will be asked to the responsible and appropriatetechnicalpersonsof therespectivebanks inorderto findoutthecurrentscenario in thebanking industry in Indonesia in the context of governingtheITwhileutilizingitatoptimumlevel.After taking the response by recipients, it would be possible to performcollectiveandcomparativeanalysistounderstandthescenarioofbankingindustryinIndonesia.

Sampling&DataCollection

ThesampleusedinthisstudyistheITDepartementin10leadingBanksinIndonesiawith the largestasset. Thedata thatareused in this studyareprimarydatagainedfromquestionnaireswhicharegiventotheemployeesthathavebeenchosenandthroughinterviewsaswellasobservation.ThequestionnairesusedcontainthequestionsaboutmostlyusedFramework,methodsformeasuringvalueofITprojectandinvestment,Methodologiesor Metrics for measuring the performance of IT department, Risk areawhich are managed or monitored, methodology for analyzing itsperformanceandconsideredelementswhilemeasuringtheValueofIT.

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DataAnalysis

AlldatagatheredfromthequestionnaireswillbeanalyzedandcatagorizedasthemostlyusedFramework,methodsformeasuringvalueofITprojectandinvestment,MethodologiesorMetricsformeasuringtheperformanceof IT department, Risk area which are managed or monitored,methodologyforanalyzingitsperformanceandconsideredelementswhilemeasuringtheValueofIT.

IV.ResearchPurpose,LimitationandOriginality

The purpose of this research is to study the IT Governance on bankingindustry status and its effects on banking business in Indonesia. Thisresearchhaslimitationintermsofthecoveragearea,whichonlyincludes10 leading Banks in Indonesia. Further research is needed to get theinformationabouttheimpactofITGovernanceinmoreBanksinIndonesiaandtoseehowitwouldimpactIndonesia’seconomicasabiggerscaleofbusiness industry.ThispapermayprovideavaluableandhandyguidelineforbankstobuilduptheITgovernanceandmeetthegoodITsystemintheperspectiveoftechnology.

REFERENCE

VanGrembergen,W. (2002) Introduction to theMinitrack ITGovernanceandItsMechansims,Proceedingsofthe35thHawaiiInternationalConferenceonSystemSciences(HICSS).

IT Governance Institute.(2003). Board Briefing on IT Governance SecondEdition.

IS Auditing Procedure P1 IS Risk AssessmentMeasurement. (April 2002).ISACA.ValueofIT:BeyondtheTheoretical,(2009).ISACAJournal,Volume2.

MichaelD.S.Harris,DavidHerronandStasiaIwanicki.(2008).TheBusinessValue of IT: Managing Risks, Organizing Performance andMeasuringResults.

Khuram Mustaque, Kahmran Ahsan, & Ahmed Umer. (2014). ITGovernance in Banking Sector; Val IT and Risk AssessmentPerspective.

Tati Ernawati, Suhardi,&Doddi R.Nugroho. (2012). IT RiskManagementFrameworkBasedunISO31000:2009. InternationalConfrenceonSystemEngineeringandTechnology,IEEE.

Chauke, Lesego M., & Andre J. Buys. (2008). Strategic Utilization ofInformation Technology within Retail Banking. PICMET 2008

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Proceedings,27-31July,CapeTown,SouthAfrica(c)2009PICMET,IEEE.

Mingxing LI & Tongjian Zhang. (2013). The Empirical Analysis on theInformation Technology Risk Control Evaluation System in theCommercialBankBasedonURSITFrame.InternationalConferenceon Multimedia Information Networking and Secutiry, IEEE, DOI10.1109/MINES.2010.53.

Roulstone,D.Brian,&JackJ.Phillips.(2012).ROIforTechnologyProjects:Measuring and Delivering Value, Transaction on EngineeringManagement.IEEE,VOL59,No4.

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THEINFLUENCEOFBRANDIMAGEANDCOMPANYREPUTATION

TOWARDSPERCEPTIONSOFCUSTOMERVALUEONBRANCHLESS

BANKINGSERVICEOFPTBANKRAKYATINDONESIAPerseroTbk(BRILINK)

(CASESTUDY:CUSTOMEROFBRILINKAGENTOFBRIKCP

BATUNUNGGAL)

AhmadMHWinata,StudentID.120820150031,win.tekim@gmail.com

RahadianFitra,StudentID.120820150037,Rfitra@bankbjb.comMasterofManagementProgram,FacultyofEconomicsandBusiness,

UniversitasPadjadjaran1.INTRODUCTION

The initial focus of branding research has been about consumers’associationsandtheirbeliefsabouttheattributesofthebrand(e.g.Keller,1993). However, when Berry (2000) examined branding in consumerservice settings, what was found to bemore important was the brand’s‘‘meaning’’ that thecustomersderived fromtheserviceexperiences theyhave.Inthesesituationsthereputationofthecompanycanhaveamajorinfluence on the buyer process and consumption experience. Hence,Berry (2000, p. 128) suggests that ‘‘the company’’ becomes the primarybrandratherthantheproduct.Banks are actively developing e-channel. They are racing on looking forfamous brand and they are not to open branch office in the era ofbranchlessbanking.Hundredsof thousandsofbranchlessbankingserviceagents (Laku Pandai agents) that become the extension of commercialbanks will invade various in many business branchless banking servicemarkets thecompany’s servicealsoplaysamajor rolebecause there isaneedfortechnicaladviceabouttheproducts.Hence,likeconsumerservicemarkets,thecompany’sreputationislikelytohaveanimportantinfluenceonthebuyingprocessesthat isdifferenttotheproductspecific influenceof the brand’s image. Given that there are substantial marketinginvestments in building brand image and company reputation, this is anarearequiringinvestigation.Whiletherehasbeenconsiderableresearchaboutbrandingandcompanyreputation,thesetwostreamsofresearchhavebeenlargelyindependent.Only recently there has been an attempt to understand the different

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influences of company reputation and brand image on buying processes(Balmer,2001).In2015,BRI focusedon thedevelopmentof theBankby identifyinghighcarryingpowerfactorsonitsperformance,namelytechnology,innovationand networks. As it is known that the development of technology,demographicshiftsbothintermsofageandpopulationmigrationtowardsurbanareas,aswellas the trendtowardsglobalizationhavechangedthelifestyleandpreferencesofsociety.Additionally,moremassive,rapidanddisruptive changes have changed the climate of business competition.Technological transformation, innovation development, networkexpansion,humanresourcesstrengthening,improvementofthequalityofoperations, and technological development were conducted by BRI withstrategic objectives that lead to its main goal of becoming the mostvaluable bank. BRI is continuously adaptive and proactive in followingdevelopments and demands of the times, so that the Bank is able tomaintainitsachievementsonanongoingbasis.BRI’s transformation strategy implementation is done through theexpansion of the range of quality services by strengthening e -channel,BRILink,mobileservices,digitalinnovationbanking;financialproductsandservices, such as chip-based debit cards; as well as communicationsnetwork infrastructure projects – BRI’s Satellite and Fiber Optics. Whileconventionalnetworkisexpandedthroughtheadditionofmobileoffices:TerasBRIShips,mobilecars,E-Buzz,andPrioritasServiceCentersaswellasopeningoverseasunits.The journey,effortandspiritofBRIduring2015aresummarized intothetheme of the Annual Report, The Biggest National Payment Bank WithTechnologyServicesReachingtheCountry’sRemoteAreas,toaccomplishtheNawaCita(ninepriorities)inBuildingEconomicDemocracywithinthevast geography of Indonesia in the form of islands which has become achallengeforthebankinprovidingservicestosociety.BRIseesitasahugepotential forbusinessgrowth in the future .BRIsuccessfullybuiltBRILInkastheanswertothatpotential.In line with the spirit of the Government contained in Nawa Citaparticularlypoints7 i.e. to realizeeconomic independencebydevelopingdomestic strategic sectors and implementing Laku Pandai Program set

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forth intheFinancialServicesAuthority(FSA)POJKNo.19/POJK.3/2014,BRI has successfully developed banking services without office that isBRILink.BRILinkisaserviceagencywhereBRIcollaborateswithcustomersastheagentstoprovideawiderangeofrealtimebankingservicestothepublic with a fee sharing (fifty-fifty) business model. The products andservices of BRILink include Mini ATM BRI, T- Bank or electronic moneyproducts based on BRI server by using mobile phone number as theaccountnumber.In business branchless banking servicemarkets, it is common to use thecompany’s name as the brand name across a range of product groups.Thus, it is necessary to distinguish the influences of the brand imageassociatedwith a specific product category and the broader influence ofthe company reputation.Oneway to do that is to examine thedifferentinfluencestheyhaveoncustomerloyaltytowardthecompany’sproducts.Understanding the nature of these processes has recently receivedattention in marketing by both academics and consultants in branchlessbangking service markets (e.g. Gale, 1994; Kordupleski, Rust & Zahorik,1993;Rust,Lemon&Zeithaml,2004)).However,researchinthisareahasgiven little explicit attention to distinguishing the influences of brandimageandcompanyreputation.Thepurposeofthispaperistodevelopanintegratedmodelthatexplicitlyaccountsforinfluencesofbrandimageandcompany reputation on business branchless banking service towardscustomers’perceptionsofquality,valueandloyalty.

A particular branchless banking service business market was chosen forbranchlessbankingserviceagent.Inthisestablishedmarketeachcompanyhadabrandwithadistinctive image thatemphasizedbenefits thatwerespecifictothebranchlessbankingservicemarket.Thisresearchprovidesageneralapplicationtobranchlessbankingservicebusiness markets. The research extends Mudambi’s (2002) exploratorystudywhichexaminedtheinfluencesofbrandingandcompanyreputationin a businessmarket.WhileMudambi’s studywas focusing on customerchoice,ourstudyfocusesonthevalue-loyaltyprocess.Inthisprocess,thetrade-off between perceived quality and costs determines perceivedcustomer value,which in turndetermines customer loyalty. Thuswe canexamine whether brand image has a more specific influence on theperceptions of product quality and whether company reputation has a

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broader influence on perceived customer value and customer loyalty. Inaddition,byfocusingonvaluecreation,thestudyrespondstotheInstituteoftheStudyforBusinessMarkets(2003)priorityareaofresearchof‘‘howto better create, measure, and deliver customer value in businessmarkets’’.Thepaperproceedsasfollows:intheliteraturereviewsectionweexaminebranding in branchless banking service business markets, the process ofdelivering customer value, and research about the constructs of brandimageandcompanyreputation.

2.Literaturereviewandresearchframework

2.1.BRIBranchlessBanking(BRIlink) Definition

BRILinks isanE-BankingtransactionproductwhereBRIcollaborates withthird parties as its agents to provide financial services of which featurescan be accessed through the channels owned by the third partiesconnectedtoBRI.

Advantage

- Canimprovetheeconomyandcreatebusiness- Easeofpaymentandpurchasetransactions- SupportsLessCashSociety

Target

Allremoteareas- increasethenumberofcustomers- Increasetransactions- reachunbankedpeople- BRIbecomesthepeople'schoiceinconductingtransactions

Requirements

- PhotocopyofIDcard- PhotocopyofNPWP- LegalityofBusiness:Situ/SIUP/TDPorCertificateofBusiness/Domicile

ofvillages- FilloutBRILinkForm- signaBRILinkMoU

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SharingFee

Sharing fee is a scheme between the Bank and BRILink Agents fortransactions conducted in certainBRILINKSEDC terminal. The fee sharingschemeisasfollows:- BRI:50%- BRILinkAgent:50%

Figure1.BRIlinkEDCandmarketingcommunication

2.2Brandinginbusinessmarkets

Withtheincreasingemphasisonservicesinallmarkets,thedifferencesinmarketing practices in consumer and business markets are diminishing(Vargo & Lusch, 2004). However, some differences may exist when itcomes to branding (Mudambi, 2002, p. 527). This is because the buyingprocesses for businessmarkets involvemore direct interactionswith thesellingorganisation.Productsmaybemore technicalandpersonal sellingcanalsoplayanimportantroleinbuildingrelationshipsbetweenthebuyerand seller. In addition, there may be more emphasis on the rational ortechnicalaspectsand lessemphasison the self-expressiveandemotionalbenefits of brands (Wilson, 2000). Thus for business markets, it isnecessary to have a broader conceptual framework than what hastraditionallybeenusedtoinvestigatebrandsinconsumermarkets.

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This frameworkwillneedtodistinguishthemorespecificproductrelatedinfluences associatedwith the brand image and the broader experiencesthe customer has with the company including the relationships thecustomermaydevelopwith thesales representative.While research thatfocus on understanding the influence of the brand image remainimportant, it isalsonecessary to integrate themorerecent research thathaveexaminedtheinfluencesofcompanyandcorporatereputation.Our reviewofbranding research inbusinessmarkets indicates that ithaslargelybeenexploratoryandtherehasbeenlittlesystematicdevelopmentand testing of comprehensivemodels. The first two studies examine theimportance of the brand name in branchless banking service businessmarkets, while the other studies start to develop more comprehensiveframeworks.ThemostrecentofthesestudiesisbyBendixen,BukasaandAbratt(2004)which used customer choice experiments to examine the relativeimportance of ‘‘the brand’’ versus ‘‘delivery’’, ‘‘price’’, ‘‘technology’’ and‘‘availabilityofspareparts’’.However,withtheexceptionofthestudybyMudambi (2002), little explicit attention has been given to distinguishingthe influenceofbrandimageandcompanyreputation.Mudambi’s(2002)modelincludedproductattributes(physicalproductproperties,theprice),serviceattributes(thetechnicalsupportservices,theorderinganddeliveryservices, the quality of theworking relationship) and branding attributes(howwellknownthesupplieris,thegeneralreputationofthesupplier).While Mudambi’s (2002) study provides a good starting point bydistinguishing the influences of brand name and company reputation,further refinement is needed.We suggest to focus on the influences ofbrandimageandcompanyreputationonthecustomervalueandcustomerloyaltyprocess.

2.3.Thecustomervalueprocess

Thereasontofocusonperceivedcustomervalueasopposedtocustomersatisfaction is because customer value is a better predictor of customerloyalty(Rust,Zahorik&Keiningham,1995).TheapproachproposedbyRustetal.(1995)andGale(1994)drawsonZeithaml’s(1988p.14)assumptionthat the customers’ perceptions of the value of the firm’s offering arederived from the trade-off between the benefits (i.e. perceptions of

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product and service quality) of the firm’s offer, and sacrifices (i.e. pricesandnon-monetary costs) of theoffer. This is referred to as ‘‘worthwhatpaidfor’’.The perceptions of the ‘‘benefits’’ of product and service quality are notonly limited to functional aspects (physical attributes, service attributesand technical support) of the offering but can include emotionalcomponentssoboththecognitiveandaffectiveinfluencesofbrandimagecan be incorporated (Brady & Cronin, 2001; Patterson & Spreng, 1997).While research using the customer value framework has included brandimageasoneoftheinfluencesonproductandservicequality,littleexplicitattention has been given to how company reputation influences theprocess. Because company reputation is linked with the organisation’svalues,visionandpurpose,itcanbeexpectedtohaveabroaderinfluence.Thismeans itmayhaveamoredirect impactonperceptionsofcustomervalueandcustomer loyalty(Balmer,2001). Inourstudyweexplorethesealternativeinfluencesofbrandimageandcompanyreputation.2.4.Brandimage

Brand image has been defined as the consumer’s mental picture of theoffering (Dobni&Zinkhan,1990), and it includes symbolicmeanings thatconsumersassociatewiththespecificattributesof theproductorservice(Padgett&Allen,1997). It isseenastherepresentationofabrand intheconsumer’smindthatislinkedtoanoffering(Dobni&Zinkhan,1990),orasetofperceptionsaboutabrandtheconsumerformsasreflectedbybrandassociations (Keller, 1993). Hence it can be defined as ‘‘the reasoned oremotionalperceptionsconsumersattachtospecificbrands’’(Low&Lamb,2000, p. 352). In businessmarkets brand image can also be expected toplay an important role, especially where it is difficult to differentiateproductsorservicesbasedontangiblequalityfeatures(Mudambi,Doyle&Wong,1997).

2.5.Companyreputation

The influence of company reputation, or what is often referred to ascorporate reputation, can be expected to becomemore importantwhentherearehigherlevelsofservice.Inmanybusinessmarketsthereisalargeservicecomponentbecauseofthetechnicalnatureoftheproducts.Hencetheseller’sreputation isan important influence.Companyreputationhasbeenbroadlydescribedasthe longtermcombinationofthestakeholders’

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assessment about ‘‘what the firm is’’, ‘‘how well the firm meets itscommitmentsandconformstostakeholders’expectations’’,and‘‘howwellthe firm’s overall performance fits with its socio-political environment’’(Logsdon&Wood, 2002). Consequently, company (corporate) reputationhas been defined as ‘‘a particular type of feed-back received by anorganisation from its stakeholders, concerning the credibility of theorganisation’sidentityclaims’’(Whetten&Mackey,2002,p.401).Branding research in business markets Study Product Focus of studyFindings (Saunders andWatt,1979)Man-made fibre products Consumersperception of brands Brand-naming strategies have mixed effectiveness(Sinclair and Seward, 1988)Wood products Brand-naming strategies andthe effect on the differentiation Brand-naming strategies have mixedeffectiveness(VyasandWoodside,1984).Buyersarewillingtopayapremiumpriceforanofferingthatissuperiortoits Competitors (Gordon, Calantone and di Benedetto, 1993) Electricalproducts Organisational-buying Brands have an important influence onbuyingdecisionsandloyaltytosupplierisalsoimportant(Mudambiet.al.,1997)Organisational buying Branding influences buyers’ willingness to pay apremium price, and to recommend and to buy other products with thesamebrandname(Michell,KingandReast,2001)IndustrialproductsBrandvalues in industrial markets Brand value is associated with perceivedquality, image, market leadership, company reputation and credibility(Mudambi,2002)PrecisionbearingsImportanceofbrandingandcompanyreputationwithdifferentloyaltysegments.Thebrandhasa role toplaybutpriceanddeliveryweremore importantincludes symbolic meanings that consumers associate with the specificattributesof theproduct or service (Padgett&Allen, 1997). It is seen astherepresentationofabrand intheconsumer’smindthat is linkedtoanoffering(Dobni&Zinkhan,1990),orasetofperceptionsaboutabrandtheconsumerformsasreflectedbybrandassociations(Keller,1993).Henceitcan be defined as ‘‘the reasoned or emotional perceptions consumersattachtospecificbrands’’(Low&Lamb,2000,p.352).

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In business markets, brand image can also be expected to play animportant role, especiallywhere it is difficult todifferentiateproductsorservices based on tangible quality features (Mudambi, Doyle & Wong,1997).Industrialproductsbrandvalues in industrialmarketsareassociatedwithperceived quality, image, market leadership, company reputation andcredibility.Mudambi (2002)arguedthatprecisionbearings Importanceofbranding and company reputation with different loyalty segments.Company reputation has different influences in the loyal and non-loyalmarketsegments.Bendixenet.al., (2004)foundsthatbrandingonlyhadarelative importance when buyers were deciding to make purchasedesicion. Other attributes were found to be more important includingdeliveryperiod,followedbyprice,technologyandfinallytheavailabilityofparts. The brand has a role to play but price and delivery were moreimportant.Whilethecompany’sreputationisderivedfromperceptionsofall stakeholders,Wartick (2002,p.377)suggested it ispragmatic to focusjustontheimmediatecustomers,astheyusuallyarethegroupthathavethemajorinfluence.Greyser(1999)identifiedthreegeneralinfluencesthatthecompanyreputationmighthaveonitscustomers.The first relates to differentiating customers’ perceptions of the productand servicequality, so it is similar to the influenceof thebrand’s image.Thesecondandthethirdarebroaderinfluencesoncustomers’perceptionsoffinancialvalueandtheirloyaltytothecompany.

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2.6ResearchFramework

Figure2.ResearchFramework

3.ResearchMethodology

3.1.ResearchDesign

Research design uses mixed methods design, with explanatorysequential mixed methods model. Mixed methods design combinesqualitative research and quantitative research, in addition to combiningthe data collected in this research. In explanatory sequential mixedmethods model, the researcher uses quantitative research, analyzes byusing quantitative research, then sharpens the analysis result by usingqualitativemethods(Creswell,2014:46).

3.2OperationalizationofVariables

The variables used in this study are brand image (X1) and companyreputation (X2) as independent variables, and perception of customervalue (Y1) as dependent variable. The parameters investigated aredescribedinthetablebelow.

BrandImage(X1)

Brandingattributes(howwellknowntheproductis,thegeneralreputationoftheproduct).Mudambi’s(2002)

CompanyReputation(X2)

1. ‘‘whatthefirmis’’2. ‘‘howwellthefirmmeets

its commitments andconforms tostakeholders’expectations’’

3. ‘‘how well the firm’soverall performance fitswith its socio-politicalenvironment’’ (Logsdon&Wood,2002)

PerceptionofCustomerValue(Y1)

1.Benefit:4. ProductAttributes(physical

productproperties,theprice),5. Serviceattributes(the

technicalsupportservices,theorderinganddeliveryservices,thequalityoftheworkingrelationship)

6. Brandingattributes(howwellknowntheproductis,thegeneralreputationoftheproduct).

Mudambi’s(2002)2.Cost:

1. Price2. Time3. Energy4. Psychology

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Table1.OperationalizationofVariables

Variables Dimensions

BrandImage(X1)

Brand imagehas beendefined as theconsumer’s mental picture of theoffering(Dobni&Zinkhan,1990),andit includes symbolic meanings thatconsumers associatewith the specificattributes of the product or service(Padgett&Allen,1997)

1. Brandingattributes(howwellknowntheproductis,thegeneralreputationoftheproduct).Mudambi’s(2002)

CompanyReputation(X2)

Companyreputationhasbeenbroadlydescribed as the longtermcombination of the stakeholders’assessment about ‘‘what the firm is’’,‘‘how well the firm meets itscommitments and conforms tostakeholders’ expectations’’, and‘‘how well the firm’s overallperformance fits with its socio-political environment’’ (Logsdon &Wood,2002)

1. ‘‘whatthefirmis’’2. ‘‘how well the firm meets its

commitments and conforms tostakeholders’expectations’’

3. ‘‘how well the firm’s overallperformance fits with its socio-political environment’’ (Logsdon&Wood,2002)

PerceptionofCustomerValue(Y)

assumption that the customers’perceptionsof the valueof the firm’sofferingarederivedfromthetrade-offbetweenthebenefits(i.e.perceptionsof product and servicequality) of thefirm’s offer, and sacrifices (i.e. pricesandnon-monetarycosts)of theoffer.Thisisreferredtoas‘‘worthwhatpaidfor’’Zeithaml’s(1988p.14)

1.Benefit:• Productattributes(physical

productproperties,theprice),• Serviceattributes(thetechnical

supportservices,theorderinganddeliveryservices,thequalityoftheworkingrelationship)

• Brandingattributes(howwellknowntheproductis,thegeneralreputationoftheproduct).Mudambi’s(2002)2.Cost:

• Price• Time• Energy• Psychology

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3.3Sampling&DataCollection

All data gathered from questionnaires are analyzes by using multipleregression analysis methods. The samples used in this study are BRIlinkagents of BRI KCPBatununggal. The data used in this study are primaryand secondary data. The primary data are gained from a questionnaireswhicharegiventotheBRIlinkagentsofBRIKCPBatununggalandthroughinterview and observation of them. The questionnaires used contain thequestions on brand image,company reputation and perceptions ofcustomervalue.Thesecondarydataaregainedfromcompanydocuments,books, journals, articles, and magazines about brand image,companyreputationandperceptionsofcustomervalue.3.4DataAnalysis

A multiple regression analysis method is used to see the relationshipbetween independent variables (brand image and company reputation)and dependent variables (perception customer value). The PearsonProduct-Momentcorrelationisusedtoanalyzethecorrelationorinfluencebetween twovariables. In this study thereare threekindsof correlation,namelycorrelationbetweenwork-lifebalancevariableandjobsatisfactionvariable, correlation between work-life balance variable and employeeturnover intention variable, and correlation between job satisfaction andemployeeturnoverintentionvariable.AppendixA.Questionnairesusedtomeasureconstructs

We use the 10-point scale where 1 means ‘‘poor’’ and 10 means‘‘excellent’’.Thequestionnairesalsoincludedfurtherquestionsaboutthesub-driversfor‘‘perceivedproductandservicequality’’aswellas‘‘pricesandcosts’’.

For example, the perceived product and service quality sub-driversincluded were: ‘‘training provided by company’’, ‘‘product quality’’,

‘‘marketing support’’, ‘‘business support’’, ‘‘customer service’’, ‘‘sales

representative’’, and ‘‘special recognition programmes’’. The ‘‘Overallprices and costs’’ sub-drivers considered in this survey were ‘‘prices’’,

‘‘rebates’’and‘‘othernon-monetarycosts’’.Therespondentswereasked

about the sub-driversbeforebeing asked togive overall ratings so theyservedasthebasisforthe‘‘overall’’assessments.

Image

When you think of the overall impression of BRILink, how do you ratethem?

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a)Beingtrendyb)Havingareputationforqualityc)Beingelegantd)Beingsophisticatede)Beingwellknownandprestigiousf)Beinguseful

Companyreputation

Whenyou thinkof theoverall impressionyouhaveofBRILink,Hhowdoyouratethem?a)Beingwellmanagedb)Havingcustomerfocusc)Keepingyouinformedaboutwhat’shappeningwiththecompanyd)Beingagoodcorporatecitizene)Beingproductdrivenf)Beingsuccessfulg)Beinginnovative

Productsandservices

Now, think about everything you have rated so far for BRILink: theirproducts, the training that they offer you, their marketing support, theways inwhich theyworkwith you to improve your business, their orderhandling and delivery, their sales representation, their incentives andloyaltyprogrammes.a)Whatratingwouldyougive?

Pricesandcosts

Nowthinkabouteverythingyouhaveratedsofarfortheirprices,rebates,discounts,returnsandothercosts...a)WhatratingwouldyougivetoBRIlinkontheiroverallpricesandcosts?

Overallworthwhatpaidfor

Iwould likeyouto thinkaboutwhatyouget forwhatyoupay inoverall.Using the same 10-point scale where 1 equals ‘‘poor’’ and 10 equals‘‘excellent’’, think about all of the products and services, and the pricesandcoststoyou.a)Howwouldyourateyourpurchasesinoverall?Isitworthwhatpaidfor?

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Intentions

We’lluseadifferentscaleforthenextquestions.Itisstilla10-pointscalebut now 1 means ‘‘Definitely Would Not’’ and 10 means ‘‘DefinitelyWould’’.a)BasedonyourexperienceswithBRIlink,howlikelyareyoutorecommendBRIlinktoothersinatrade?b)BasedonyourexperienceswithBRIlink,howlikelyareyoutoincreasetheamountyouspendonproductsfromthiscompany?

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TheIdentificationofFactorsthatInfluenceCorporateFinancialDistress

(StudyofDistressofManufactureCompaniesinIndonesia)

NovaReviantiK,StudentID.120820150022,nova_revianti@yahoo.co.idSerodyaKartikawati,StudentID.120820150046,

serodyakartika@gmail.comMasterofManagementProgram,FacultyofEconomicsandBussiness,

UniversitasPadjajaran(MMFEBUNPAD)

I.Introduction

Financial distress is the situation when a company cannot meet or facedifficultytopayoffitsfinancialobligationstothecreditors,whichinvolvesliquidityproblems,insufficiencyofequity,defaultdebtsandlackofcurrentassets. Financial distress can be experienced by all companies, especiallyduring economic crisis. To minimize the occurrence of bankruptcy, themanagementmustoverseethecompany'sfinancialperformance.

The causesof financial distress also vary. Lizal (2002, in Fachrudin 2008)classified the causes of financial distress, which are summarized in “theBasicModel of Bankruptcy” into inappropriate allocation of resources inthe company error in financial structure, and lack/ poor corporatemanagement.Identifyingwhethercompaniesarefacingafinancialdistressisimportantbecauseitisthefirstsignofbankruptcy.So,byknowingtheirfinancialposition,companiescan improvetheirperformanceandhandl itwell.Ifcompaniesaredistressed,equityholdersmaylosetheirinvestmentanddebtholderswillnotbeabletogetthefullvalueofassets.This research was conducted since Indonesia is vulnerable to financialcrisis.Attheendof2015,theexchangeratefellby0.31%toRp13,830perUSdollar,whilethemidrateofBankIndonesia(BI)wasRp13,795.Withtheweakening of exchange rate, companies would spend more money toimport goods and gain smaller amount of money from exporting theirproductionasthepriceoftheexportedgoodsbecamecheaper.Duetothisconditions, companies in Indonesia are more vulnerable to financialdistress.Oneofthe important factors inmaking investmentdecisions is topredictthesustainabilityofbussiness.Thispaperismeanttoreportthemainfocus

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on financial distress inmanufacture companies, by using the companieslistedontheIndonesiaStockExchange(IDX)during2010–2015.Toachievethepurposeofthisstudy,themainresearchobjectivesare:• Toexamine thedifferencesbetween the financial ratios (currentand

debtratios)andAltman'sZscoreindeterminingthefinancialsituation.• To determine whether manufacture companies listed on the

Indonesia Stock Exchange (IDX) during 2010 – 2015 are financiallyfailure companies, by grouping them into “financial distressed”,“sustainable”,and“healthy”categories.

• Todeterminethesituationof financialperformanceofcompaniesbystock return for themanufacture companies listed on the IndonesiaStockExchange(IDX)during2010–2015.

II.LiteratureReviewandResearchFramework

FinancialDistressTheempiricalliteratureoffinancialdistresspredictionhasrecentlygainedfurthermomentumandattentionfromfinancialinstitutions.Academiciansand practitioners realize that the problem of asymmetric informationbetween banks and firms lies at the heart of importantmarket crashessuchas credit rationingand that improvement inmonitoring techniquesrepresents a valuable alternative to any incomplete contractualarrangementaimedatreducingtheborrowers’moralhazard(Becchetti&Sierra,2003;Stiglitz&Weiss,1981;Xu,2000).Among financial distress forecasting methods, discriminant analysis wasthedominantmethodforpredictingcorporatefailurefrom1966untiltheearlypartofthe1980s(Altman,1968,1983;Backetal.,1996b).Itgainedwidepopularitydueto itseaseofuseand interpretation.However,bothlinearandquadraticdiscriminantanalysesaresensitivetodeviationfrommultivariatenormality(Karels&Prakash,1987;Laitinen&Laitinen,2000).During the 1980s, the probit (Zmijewski, 1984) and, especially, the logitmethods (logistic regression model) (Back et al., 1996b; Ohlson, 1980)usedthediscriminantmethod.Since the 1990s, neural networks have been the most widely usedtechniquesindevelopingquantitativefinancialdistressprediction(Backetal.,1996b;Tam&Kiang,1992;Wilson&Sharda,1994), inparticular, the

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approximation or classification powers of the MLP trained by thebackpropagationalgorithm(Hassoun,1995;Hertz,Krogh,&Palmer,1991).Many studies compared the neural networks backpropagation algorithmwith the statisticalmethodsand foundneuralnetworksbackpropagationoutperformed the other statistic methods, such as multivariatediscriminantanalysis(MDA),probitandlogitmethods(Backetal.,1996a;Shin,Lee&Kim,2005;Wilson&Sharda,1994).SunandLi (2008)usedweightedmajorityvotingcombinationofmultipleclassifiersforFDP,ChenandDu(2009)introducedanintegrationstrategywith subject weight based on neural network for financial distressprediction. They all generated diverse classifiers by applying differentlearning algorithms (with heterogeneous model representations) to asingle data set, and concluded that, to some degree, FDP based oncombination of multiple classifiers was superior to single classifiersaccording to accuracy rate or stability. Themost usedmachine learningtechnique is the neural network model (Haykin, 1999), trained by thebackpropagation learning algorithm (Wong et al., 1997;Wong and Selvi,1998) of which prediction accuracy outperformed statistical modelsincluding logistic regression (LR), linear discriminant analysis (LDA),multiplediscriminantanalysis (MDA)andothermachine learningmodels,suchask-nearestneighbor(k-NN)anddecisiontrees.Assesing the financial strength of companies has traditionally been thedomain of parties external to the firm, such as investors, creditors,auditors, government regulators, and other stakeholders.More recently,because competition has spawned intimate relationships betweenmanufacturers and their component suppliers, now manufacturers areconcerned about the financial health of their suppliers and vice versa.Fromasupplychainmanagementperspective, ifamanufacturercanhelponeofitsuppliersameliorateproblemandtherebyavoidbankruptcy,itisinbothparties’interesttodoso.Relianceonreactivedistresssignalssuchas delayed shipment, problem with product quality warnings from thesupplier’s bank, or observations made during company visits to indicatenear-termfinancialdifficultiesreducetheoptionsandthetimeavailabletoact and remedy the situation (Platt, Harlan D;Journal of Economic andFinance;Summer202;26,2;HealthManagementDatabacepg.184)

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LiquidityRatioRatioanalysisisdividedintofivetypes,namelyliquidityratio,activityratio,solvency ratio, profitability ratio, and market ratio. The five basic ratioshaverolesinassessingthefinancialconditionofacompanyinaccordancewith the components of the data used in these ratios. These five basicratios in thisaccountingare combined therefore the ratioanalysismodelcapable of predicting the bankruptcy of a company (Sinarti & Sembiring,2015).Liquidityratiosareusedbyinvestorstogaugetheriskoftheirinvestmentthrough screening of financial sound companies on stock for investmentconsideration. Analysts frequently use the liquidity ratios to determinewhetheracompanywillbeabletocontinueasagoingconcern.ThethreeLiquidity Ratios that are usually used to gauge a company's short termfinancialsituationorsolvencyarethecurrent,quickandcashratios(Kim-Soon,Mohammed,&Agob,2013).- Thecurrentratio isacommonlyusedmeasureofshort-runsolvency,

theabilityofthefirmtomeetitsdebtrequirementsastheycomedue.Current liabilities are used as the denominator of the ratio becausethey are considered to represent the most urgent debts, requiringretirementwithinoneyearoroneoperatingcycle.Theavailablecashresources to satisfy theseobligationsmust comeprimarily fromcashortheconversiontocashofothercurrentassets(Fraser&Ormiston,2004).

- The quick or acid-test ratio is a more rigorous test of short-runsolvencythanthecurrentratio because the numerator eliminates inventory, considered theleastliquidcurrentassetandthemostlikelysourceoflosses(Fraser&Ormiston,2004).

- Another approach tomeasuring short-term solvency is the cash flowliquidityratio,whichconsiderscashflowfromoperatingactivitiesThecashflowliquidityratiousesinthenumerator,asanapproximationofcashresources,cashandmarketablesecurities,whicharetruly liquidcurrent assets, and cash flow from operating activities, whichrepresentstheamountofcashgeneratedfromthefirm’soperations,such as the ability to sell inventory and collect the cash (Fraser &Ormiston,2004).

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Broadly speaking, in order to identify distress or bankruptcy, financialanalyst and investors use financial ratios to conduct measurement orevaluation. Byunderstanding financial ratios, it is possible to gain insightinto the financial status of the company. Information from three keyfinancial statements i.e. balance sheet, income statement and cash flowstatement,isthebasisfortheapplicationofratioanalysis.Financialratioscan illustrate the past, present and future performance of corporatefinancialpositionandareveryusefulindicators.Mostofthefinancialratioscanbecalculated fromfinancial statement.According to theMohammadetal., (2009) financial ratiosare important in financialanalysisand intheperformance of evaluation of companies as well as in calculating thefinancialfailureofcompaniesthroughthepracticalapplicationofanumberofcompaniesandtheuseofgraphtodisplaytheresults,inordertoavoidfailure and face global financial crisis. The researchers found significantresults,includingconvergenceofresultsbetweenthevalueofthefinancialperformanceofcompaniesandthevalueoffinancialfailureofcompanies,and the possibility of the use and presentation of results in the financialmarkets,totakeadvantageofthem(Mahmoodetal.,2009).Khaliq,Altarturi,&Thaker(2014:142)concentratedonliquidityratiosandlong term debt paying ability to find relationship with financial distress.Liquidityratiosareusedtoassessthestatusofcreditfacility.Theyusuallyreflecttheextentofacompany’sabilitytomeetitsobligationsintheshorttermthatareoptimized.Currentratioisafinancialliquidityindicatorthatmeasureswhetherornotacompanyhasenoughresourcestopayitsdebtsoverthenext12months,anditcomparesthecompany'scurrentassetstoits current liabilities. In order to lessen consumption risk, short termcreditorspreferhighcurrentratio.AltmanZScoreModelThebankruptcymodelshavebeendevelopedinseveralcountries,Altman(1968) conducted a survey of models developed in the United States,Japan, Germany, Switzerland, Brazil, Australia, England, Ireland, Canada,theNetherlands,andFranceusing financial ratio.Thismodelwasable topredictfinancialcrisiswithanaccuracyrateof95%intheyearbeforesucha crisis happened. In 1983, he modified this model, and provided the Zmodel. The Bankruptcy prediction using Z-Scoremodel can be calculatedwiththefollowingformula:

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Z-Score=0.012X1+0.033X3+0.014X2+0.006X4+0.999X5

Remarks:X1 : Currentassets-currentliabilities/totalassetsX2 : Retainedearnings/totalassetsX3 : Earningsbeforeinterestandtaxes/totalassetsX4 : Market value of common and preferred stock/book value of

debtX5 : Sales/totalassetsZ : OverallIndexThe criteriawhich are used to predict company bankruptcy according tothismodelareasfollows:thecompanieswithZ-score>2.99areclassifiedashealthy companies, while those with Z-Score <1.81 are classified aspotentiallybankruptcompaniesandthosewith1.81<Z-Score<2.99areclassified as companies in the gray area, with a “cut-off” value for thisindexof2.675.III.ResearchMethodology

ResearchDesign

This study will explore the financial position of manufacture companieslisted on the Indonesia Stock Exchange (IDX) during 2010 – 2015. In thispaper, thequantitativeresearchmethodologywillbeusedwithempiricalstudy. Quantitative research is used to answer questions aboutrelationships among measured variables with the purpose of explaining,predicting, and controlling phenomena. In addition, when researcherwantstoidentifytherelationsbetweentwoormorevariables,correlationdesignisaproperoption.Todetermineifthevariablesarerelatedornot,based on data gathered from individuals on two or more variables,correlation design illustrates the two variables vary directly (positivecorrelation)orinversely(negativecorrelation) (Khaliq,Altarturi,&Thaker,2014).OperationalizationofVariables

Researchershaveemployedthebelowframeworktoconducttheresearchwhereby thedependentvariable is financialdistresscostasmeasuredbyAltmanZ-scoreswhereas the independentvariablesarecurrent ratioanddebtratio.

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The variables that are used in this study are Liquidity Ratios (X1) as theindependent variables, and Financial Distress (Y) as the dependentvariable.Theparametersinvestigatedaredescribedinthetablebelow.IndependentVariabelX1,LiquidityRatio–CurrentRatiomeasurement:

Formula

CurrentRatio !"##$%& !""#$!"##$%& !"#$"%"&"'(

IndependentVariabelX2,DebtRatiomeasurement:

Formula

DebtRatio !"#$% !"#$!"#$% !""#$

DependantVariabelY,Altman'sZ-ScoreModel(1968)Inthispaper,thedevelopedmultiplediscriminantanalysis(MDA)modelbyAltman(1968)waschosenastheappropriatestatisticaltechnique.MDAisastatisticaltechniqueusedtoclassifyanobservationintooneofseveralapriori groupings dependent upon the observation's individualcharacteristics. The model can provide some ideas about the financialsituation of manufacture companies listed on the Indonesia StockExchange (IDX).Altmandeveloped the followingequation for judging thefinancialsoundnessofacompany.

Formula

Altman'sZ-

ScoreModel

(1968)

Z-Score=0.012X1+0.033X3+0.014X2+0.006X4+0.999X5

where:X1:Currentassets-currentliabilities/totalassetsX2:Retainedearnings/totalassetsX3:Earningsbeforeinterestandtaxes/totalassets

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X4:Marketvalueofcommonandpreferredstock/bookvalueofdebtX5:Sales/totalassetsZ:OverallIndex

Detailsofthevariablesareasfollows:• X1,WorkingCapital/TotalAssets

This is a liquidity ratio that measures the net liquid assets (thedifferencebetweencurrentassetsandcurrentliabilities)ofacompanyoverthecompany’stotalcapital.

• X2,RetainedEarnings/TotalassetsThis variable measures the leverage of the company whereby theformula analyzes how much of its assets are financed by thecompany’s own funds. ‘Retained earnings’ is the account wherebysurplus earnings are accumulated and recordedhence the larger theratio of the retained earnings of a company in relation to the totalassets in hand, the less debt is utilized by the company due to theretentionofprofits.

• X3,EarningsBeforeInterestandTaxes/TotalAssetsItmeasuresthe‘trueproductivity’ofthecompany(Altman,2000)asitdisregards the existence of tax and leverage factors affecting theactualearningsofthecompany.AccordingtoAltman(2000),thisratiooutperformsotherprofitabilityratiosincludingthecashflowratioandis very useful in measuring corporate failure as the reason for acompany’s existence is the earning power of the company’s ownedassets.

• X4,MarketValueofEquity/BookValueofTotalLiabilitiesThis is a solvency ratio whereby the maximum fall in a company’sequityvaluebeforethecompanyfallsunderthe‘insolvent’categoryistabulated. Themarket valueof equity is calculated as the sumof allshares,which includesboth long-termandsort-term liabilities statedintheannualreport.

• X5,Sales/TotalAssetsThisdescribes theabilityof the company’s assets inproducing sales.The Altman Z – score model actually shows the figures that can beused to categorize a company into the financial distressed andnon–financialdistressedcompany.Thedescriptionsofthecategoriesareasfollows;

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DescriptionofZ-scoreNo. RangeofZ–

Score

Interpretation

1. Abovethan

2.99

Healthycompany

Thefinancialinstitutionisingoodpositionandsafefromfinancialproblem

2. Between

2.99and

1.81

Greyarea

It is considered as a gray area as the financialinstitution has chances to face bankruptcyproblem

3. Lessthan

1.81

Potentiallybankruptcompany

The financial institution is most likely to beheading towards bankruptcy problem.Necessary actions are needed to avoid theworst.

In addition to that, wewill test the relationship of financial distresswiththeliquidityratioandlong-termdebtabilityrationamelycurrentratioanddebtratio.Thustheregressionequationforthisstudyisasfollows:

Zi : FinancialDistressCostasmeasuredbyAltmanZscoresCri : CurrentRatioDri : DebtRatioЄt : ErrorTerm

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References

Anantadjaya, Samuel P.D., & Veronica, M.Sienly. (2014). BankruptcyPredictionModel:AnIndustrialStudyinIndonesianPublicly-listedFirmsDuring1999-2010,Rev.Integr.Bus.Econ.Res.Vol3(1)

B.Platt Harlan & D.Platt Marjorie. (2002). Predicting Corporate FinancialDistress: Reflections on choice-Based Sample Bias., Journal OfEconomicsandFinance.Volume26.Number2.Summer2002

Gentry, James A., Newbold, Paul., &Whitford, David T, 1985, PredictingBankruptcy: If Cash Flow's Not The Bottom Line, What Is?,FinancialAnalystsJournal,Vol.41,No.5:47-56.

Sinarti, & Sembiring, T. (2015). Bankruptcy Prediction Analysis ofManufacturing Companies Listed in Indonesia Stock Exchange.InternationalJournalofEconomicsandFinancialIssues,354-359.

Kim-Soon,N.,Mohammed,A.A.,&Agob,F.K.(2013).AStudyofFinancialDistressCompaniesListed intheMalaysianStockExchangeusingFinancialLiquidityRatiosandAltman'sModel.EuropeanJournalofScientificResearch,513-525.

Khaliq, A., Altarturi, B. H., & Thaker, H. M. (2014). Identifying FinancialDistress Firms: A Case Study of Malaysia’s Government LinkedCompanies(GLC).InternationalJournalofEconomics,FinanceandManagement,141-150.

Mitrović1, A., Knežević2, S., & Veličković3, M. (2015). RATIO ANALYSISSPECIFICS OF THE FAMILY DAIRIES’FINANCIAL STATEMENTS.EconomicsofAgriculture,1061-1075.

Ali,A.Z.(2012).HealthCareFacilitiesAndPatientsSatisfaction:ACaseofCivil Hospital Karachi. Journal Of Contemporary Research InBusinessVol4,No.1May,784-787.

Amin M, I. Z. (2011). the role of customer satisfactionin enhancingvustomerloyaltyinMalaysianIslamicbanks.TheServicesIndustryJournal,Vol31Nos9-10,1519-1532.

Herlambang, S. (2016). Manajemen Pelayanan Kesehatan Rumah Sakit.Yogyakarta:GosyenPublishing.bukupegangansosialisaiJaminanKesehatanNasional (JKN)dalamsistem jaminansaosiaNasional.(2011).

Parasuraman,A.Z.(1991).refinementandreassessmentoftheSERVOUALscale.JournalofRetailing,vol.67No.4,420-450.

Kotler, K. (2006).MarketingManagement 12th ed. New Jersey: PrenticeHall.

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(2004). Sistem JaminanSosisalNasional.DalamUndangUndangRepublikIndonesiaNomor40.RepublikIndonesia.

Muslim Amin, S. Z. (2013). Hospital Service Quality and its effects onpatientsatisfactionandbehaviouralintention.ClinicalGovernanceAnInternationalJournalVol.18No.3,238-249.

Khanchitpol Yousapronapaiboon, W. J. (2012). Measuring hospital out-patient service quality in Thailand. Leadership in Health ServicesVol.26No.4,338-351.

AmaP.Fenny,U.,.(2014).PatientSatisfactionwithPrimaryHealthCare-AComparison between the Insured and Non-Insured under theNational Health Insurance Policu in Ghana. Global Journal ofHealthScience;vol6No.4,9-21.

Adisasmito.(2008).sistemkesehatan.jakarta:RajaGrafindoPersada.Astuti H, N. (2014). Patient Loyalty to Health Organization. Relationship

MarketingandSatisfaction.

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TheComparisonofServiceQualityforBPJSKesehatanPatientsandPublic

PatientsanditsInfluencetowardPatientLoyalty

TiaraLarasati,StudentID.120820150028,larasati_tya@yahoo.comA.FJohn–120820150035,john.friedrich15@gmail.com

MasterofManagementProgram,FacultyofEconomicsandBusiness,UniversitasPadjadjaran

I.Introduction

A hospital is one of health care facilities that is required to support theimplementation of health measures by providing personal health careservices in the formof inpatient,outpatientandemergency services thathavebeensetforthintheLawoftheRepublicofIndonesiaNo.44of2009.Hospitalsastheserviceindustryaimtoachieveanoptimallevelofservicequality that is fair, equitable, and affordable in order to meet theexpectationsofpatients.QualityhospitalservicesaccordingtoIndonesianHospitalAssociation(PERSI) isaservicethatcansatisfyeveryserviceuserin accordance with an average satisfaction level of the population, asexpectedoutputsandcorrespondingimplementationofhospitalstandardsand codes of conduct and professional codes of conduct that have beenset.(SutotoandWibowo,2013)Satisfactionisafunctionofproximitybetweenexpectationsandperceivedperformanceofproducts.Iftheperformancedoesnotmeetexpectations,consumerswillbedisappointed;iftheymeettheexpectations,consumersaresatisfied;ifitexceedsexpectations,consumersareverysatisfied.Thesefeelings determine whether customers will repurchase the product andtalkaboutpleasantorunpleasantthingsabouttheproducttoothers.Thebigger the gap between expectations and performance, the greater thedissatisfactionthatoccurred(Kotler,2009).Customer satisfaction is meeting customer expectations of products andservices compared with the perceived performance. If the perceivedperformance matches customer expectations of services, they aresatisfied. If it does not, they are dissatisfied (Oliver, 1997; Zeithaml andBitner,2000).Therefore, in the hospital industry, patients’ satisfaction plays animportant role in measuring the quality of care and continuing their

269

services (Grogan et al., 2000). Furthermore, Crowe et al. (2002) pointedout that the interpersonal relationships between thepatients andhealthcareprovider is themost importantdeterminantofcustomersatisfaction(Gill andWhite, 2009). Similarly, the quality of the relationship betweenpatientsanddoctorshasaconsiderableimpactonthepatientsatisfactionmeasure(Alhashemetal.,2011;Merceretal.,2008;Moretetal.,2008).Healthisabasicrightofeveryperson,andallcitizensareentitledtohealthcare.UUD1945mandatesthathealthinsuranceforpeople,especiallythepoorandthosewhocannotafford,istheresponsibilityofcentralandlocalgovernment. In the1945Amendment,Article34paragraph2, it is statedthatthenationdevelopsSocialSecuritySystemforall Indonesianpeople.ThegovernmentimplementsitbyissuingLawNo.40of2004onNationalSocial Security System (Sistem Jaminan Sosial Nasional) to provide acomprehensive social security for everyone in order to meet the basicneedsof livingappropriatelyforthecreationofequitableandprosperousIndonesia.LawNo.36of2009onHealthalsoconfirms thateverypersonhas the same right to gain access to resources in the field of health andhealthservicesthataresafe,highquality,andaffordable.(TNP2KNationalTeamfortheAccelerationofPovertyReduction).Badan Penyelenggara Jaminan Sosial (BPJS/Social Security AdministrationAgency)isagovernmentprograminordertodeveloptheNationalHealthInsurance(JKN)inwhichparticipantswhohavepaidcontributionsorduespaidbythegovernment,canobtainhealthcarebenefitsandprotectiontomeetbasichealthneeds.Hospital services in Indonesia today often become the public andmediaspotlight,especiallyJKNprogramorganizedbyBPJS.Thisprogramhasbeenimplementedformorethanayearyetmanyproblemsstillcomeup,suchas the rejection of patient referrals, long queues at the registration andduring doctor's examination, the services that do not cover BPJS, lack ofinformation in the administration and some other issues. The Quality ofservicetoBPJSparticipantsisanimportantfactorthatcouldestablishthetrust of patients toward the hospital so that it can improve patientsatisfaction.Untiltoday,manypeoplestill lackconfidenceinBPJSandthequalityofservicesprovidedbyhospitalsforBPJSparticipants.

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Quality of care for patients is important because it determines theirwillingness to check their health back in the same service. According toZeithmal (2009), service quality in outpatient installation becomes animportantfactorthatshouldbeaconcernofhospitalmanagement.Furthermore, Parasuraman et al. (1985, 1988) explained that servicequality is based on five dimensions (tangible, reliability, responsiveness,assurance,andempathy).SERVQUALmodelhasprovidedacomprehensiveconceptualisation of service quality with an instrument to measureperceived service quality, and provide more diagnostics and practicalimplicationsthanwhatwerepreviouslythoughtpossible.Until today, numerous researchers have developed service qualityconcepts across industries and countries (Aagja andGarg, 2010;Arasli etal.,2005,2008;Anguretal.,1999;BhatandMalik,2007;Dabholkaretal.,1996; Jabnoun and Chacker, 2003; Karatape et al., 2005; Lim and Tang,2000; Newman, 2001). In developing countries, Duggirala et al. (2008)foundthathospitalservicequalityconsistsofsevendimensions(personnelquality, infrastructure, administrative process, process of clinical care,safety,overallexperienceofmedicalcare,andsocialresponsibility).

II.LiteratureReviewandResearchFramework

In relation to thedefinitionof JaminanKesehatanNasional (JKN/NationalHealth Insurance), several terms should be known to be associatedwithsuchinsurance:• Social insurance is a mechanism to collect mandatory contributions

fromparticipants,inordertoprovideprotectiontotheparticipantsonthe social and economic risks that may befall them or their familymembers(NationalSocialSecurityLawNo.40of2004).

• NationalSocialSecuritySystemisaprocedurefortheorganizationofSocial Security program by the Social Security Adminitration Agency(BPJS), namely BPJS Kesehatan (Health) and BPJS Ketenagakerjaan(Employment).

• SocialSecurity isaformofsocialprotectiontoensurethatallpeoplemeetthebasicneedsofadecentlife.

TheNationalHealth Insurance(JKN)developed in Indonesia ispartof theNational Social Security System (SJSN). National Social Security System isorganizedthroughthemechanismoftheSocialHealth Insurancewhich is

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basedonLawNo.40of2004onNationalSocialSecuritySystem.Theaimisthatall Indonesianpeopleareprotected in the insurance system, so thattheycanmeetthebasicneedsofpublichealthappropriately.Theadvantagesofsocialinsurancesystemincomparisonwithcommercialinsurance,amongothersare:

Table1.InsuranceSystemSocialInsurance CommercialInsurance

1.GENERALPARTICIPATION 1.INDIVIDUALPARTICIPATION2.NON-PROFIT 2.PROFIT3.COMPERENSHIVEBENEFIT 3.BENEFITASPAYMENT** Potentially covers 100% of the population (universal coverage) andrelativelycansuppresstheincreaseinhealthcarecosts.CustomerSatisfactionService quality is an abstract concept which is difficult to measure.According to Oliver (1980), service quality can bemeasured through thedifference between customer expectations and their actual experienceafter receiving services; the greater the experience compared withexpectations, the more it leads towards customer satisfaction. In othercase,theoutcomeisviceversa.Patientsatisfactioncanbedefinedasjudgmentmadebyarecipientofcareastowhethertheirexpectationsforcarehavebeenmetornot(Palmeretal. 1991). Service quality is generally measured by applying differentmodels like TQM and EFQM (European Foundation for QualityManagement) models. In this study, SERVQUAL model is taken underconsideration developed by Parasuraman et al. (1985, 1988). Thismodelhasitsapplicationinapproximatelyallserviceindustrieslikebanks,hotel,airlines, tourism, health, education etc. By using the model, we mayevaluate customer satisfaction with services provided through fiveindependent variables namely reliability, responsiveness, assurance,empathy and tangibles in connection with perceived performance andexpectation disconfirmation and finally effects are tested with customersatisfaction.ThemostwidelyusedtoolinservicesectorindustryisSERVQUAL;thistoolis developed by Parasuraman et al. (1985) who empirically explored the

272

relationshipbetweencustomerexpectationsandperceptionstoprovetheconfirmation and disconfirmation of theory. A number of authors havesupported SERVQUAL model. It can be generalized in all service sectorsaround the world; evidenced by various studies conducted in differentenvironment that have adopted this tool, for example, Alexandria et al.(2002)appliedSERVQUAL inGreeceHotelswhereasEleonoraetal.(2009)used this tool first time in Greece National hospitals and found itadjustable,applicableandreliable.Inthisstudy,SERVQUALmodelisusedbecauseofitspopularityandusageindifferentserviceindustriesspeciallyhealthandeducationthroughouttheworld.Onesideofthescalehasbeenusedinthisstudy.Patients perceive based on their actual experience. Their expectationshave not been compared because the study does not encompass gapanalysisobjectives.

Source:Parasuramanetal.(1985)

Figure1.SERVQUALmodel

Customer Satisfaction is the outcome of Tangibility, Reliability,Responsiveness,AssuranceandEmpathy.LoyaltyCustomer loyalty is built with great effort by customized marketingprograms that position the customer at the center of all the activities ofthe company. However, several multidimensional factors contribute to

273

customer loyalty. Customer loyalty is also determined by thecharacteristics of the consumers. For example, some people do not likeuncertainty and are very loyal to the first products they use. Others aremore“adventurous”andwanttotrynewproductseventhoughthey likeoraresatisfiedwithpreviousproducts.Originally, brand loyalty and customer loyalty had almost the samemeaning. Moreover, several previous studies that extensively examinedbrand loyalty for tangible goods served as the basis for a concept ofcustomer loyalty that now extends to service organizations that typicallyprovidelesstangibleproducts(Gremler&Brown,1996).Loyalty is continued use of a product or service and is grounded inattitudestowardtheproductorservice.Thedifferencebetweenloyalandhabitualuserelatestothedynamicsunderlyingtheselectionofaparticularproduct or service. A loyal buyer is, at some level, engaged in arelationship,whereasahabitualbuyer is indifferentlyengaging in routinebehavior (Knox, 1998). Dick and Basu (1994) treated the concept ofcustomer loyalty as the relationship between one’s attitude toward anentity (brand, service, store, and vendor) and one’s patronage behavior.Gremler and Brown identified three separate dimensions of customerloyalty: behavioral loyalty, attitudinal loyalty, and cognitive loyalty.Behavioral loyaltywasdefined in termsof consumers’behaviors (suchasrepeatpurchases) relatedtocertainbrandsover time (Gremler&Brown,1996).ResearchFramework

Figure2.ResearchFramework

PATIENT LOYALTY

PUBLICPATIENT

BPJSPATIENT- PBI- NonPBI

SERVICEQUALITY

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III.ResearchMethodology

ResearchDesign

This study is conducted to obtain a description of the comparison ofservice quality that includes the dimension of reliability, responsiveness,assurance, empathy, satisfaction and loyalty, forBPJSKesehatanpatientsand public patients in the outpatient department of Internal MedicineClinicofCahyaKawaluyanHospitalwithstatisticalmethods.Researchdesignusesmixedmethodsdesign,withexplanatory sequentialmixed methods model. Mixed methods design combines qualitativeresearchandquantitative research,andalsocombines thedatacollectedin this research (Creswell, 2014: 45). In explanatory sequential mixedmethodsmodel,theresearcherusesquantitativeresearch,analyzesusingquantitative research, then sharpen the analysis results using qualitativemethods(Creswell,2014:46).OperationalizationofVariables

The variables that are used in this study are Service Quality for BPJSKESEHATANPATIENTS(X1)andServiceQualityforPUBLICPATIENTS(X2)asthe independent variables, and PATIENT LOYALTY (Y) as the dependentvariable.Asfortheparametersaredescribedinthefollowingtable:

Table2.OperationalizationofVariables

Variables Dimension Indicator

Service

Quality for

BPJS

Kesehatan

Patient(X1)

Reliability OnTimeGoodDiagnosisExplanation about the disease andtreatmentEaseofserviceprocedures

Responsiveness ResponsivenessofpersonnelAssurance Abilitytodiagnose

SkillsofpersonnelFriendlinessofpersonnel

Empathy ListentocomplainorproblemService

Quality for

PublicPatient

(X2)

Reliability OnTimeGoodDiagnosisExplanation about the disease andtreatment

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EaseofserviceproceduresResponsiveness ResponsivenessofpersonnelAssurance Abilitytodiagnose

SkillsofpersonnelFriendlinessofpersonnel

Empathy ListentocomplainorproblemPatient

Loyalty

Loyalty Repeated Patient Visits to gettreatmentRepeatedPatientVisitsduetoanotherhealthproblem

Sampling&DataCollection

The samples used in this study are patients in the hospital who gettreatment in the outpatient department of internal medicine clinic ofCahya Kawaluyan Hospital, either pay as BPJS participants or Publicpatients.DataAnalysis

All data gathered from the questionnaires are analyzed using multipleregression analysismethods and correlationof PearsonProductMomentmethods. Multiple regression analysis method is used to see therelationship between several independent variables (Service Quality forBPJS Kesehatan Patients and for Public Patients) and dependent variable(Patient Loyalty). The correlation of Pearson ProductMoment is used toanalyzethecorrelationorinfluencebetweentwovariables.

References

Sinarti, & Sembiring, T. (2015). Bankruptcy Prediction Analysis ofManufacturing Companies Listed in Indonesia Stock Exchange.InternationalJournalofEconomicsandFinancialIssues,354-359.

Kim-Soon,N.,Mohammed,A.A.,&Agob,F.K.(2013).AStudyofFinancialDistressCompaniesListed intheMalaysianStockExchangeusingFinancialLiquidityRatiosandAltman'sModel.EuropeanJournalofScientificResearch,513-525.

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THE RULE OF SOFT SKILLS DEVELOPMENT TRAINING TO IMPROVE

HEALTHWORKERPERFORMANCEANDPATIENTSATISFACTION

WenyWindyaH,StudentID.120820150021.wenywindya.hapsary@gmail.com

MathildaP.Ully,StudentID.120820150011.mathilda.psully@gmail.comMasterofManagement,FacultyofEconomicsandBusiness,Universitas

Padjadjaran I.Introduction

Implementation of hospital functions is determined by its HumanResources (HR). Handoko (2011) said that this is important because thecore operation of the hospital functionality can be seen from theinvolvement of (health and non-health) professionals in the hospital. Inaddition,thefunctionofthehospitalwouldbeoptimalifallhealthworkersaccording to the type of professional, work in accordance with thestandards of hospital services, standard operating procedures and eachprofessionalstandard.

Indailyexperience,Pohan(2006)saidthatmostofpatient’sdissatisfactionis frequently raised in relation to the attitudes and behavior of healthprofessionals, suchas retardofdoctors andnurses services, doctors aredifficult to find, doctors are less communicative and informative, lengthyprocess of order, and cleanliness of the hospital environment. Attitude,behavior,speech,lessattention,unfriendlinessofstaffs,aswellastheeaseofgettinginformationandcommunicationrankhighinpatientsatisfactionperception of the hospital. Patients/their family frequently felt that theservice received does not meet their expectations to be served withrespecttotheirfeelinganddignity.Oneofthefactorsaffectingtheperformanceofemployeesisworkingskill.Competencies or skills of health workers can be seen during nursing inaccordancewiththeSOP(StandardOperatingProcedure)implemented.Inaddition, the skills of nurses can be seen from the competency test ofhealthworkers.ThisisinlinewiththeopinionofBecker,HuselidandUlrich(2001:256)inthebookentitled"HumanResourceManagement"byTjutjuYuniarsih and Suwatno (2009: 22), that competence is knowledge,capacity,andskillsorpersonalitycharacterofapersonthatdirectlyaffecthis/herperformance.

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Bambang (2002) in his book says that many research have shown thatemployeeswhohavegood soft skills,will bedeveloped intoanobedientpersonsatworkandberesponsiblefortheirwork,beabletocontrolandmanage their emotions, and be able to establish a harmonious socialrelationship with fellow employees, communities surrounding workenvironmentaswellasthesocietyinwhichtheylive.Theyarealsoabletomanagethemselves,haveinitiatives,optimism,capableofmanaginginneremotions,aswellasthinkingquietlywithoutemotion.

Rahmat(2012)provedapositiverelationshipbetweentheperformanceofnurseswithpatientsatisfaction.This illustratesthat ifperformanceofthenursingstaffisgood,whichisimplementedincarryingoutthemissionwithdisciplineanddedication,forexample,bycomingandgoinghomeontime,serving quickly and fairly, be polite and friendly, and capable of usingmedical and nursing equipment, itwill give safe and comfortable feelingfor patients so that will certainly accelerate the healing process of thedisease,therebyenhancethecredibilityoftheHospital.Soft skills have a big portion in supporting a person's success in his/hercareer. Good hard skills without being supported by personality or softskills will be futile (Ismail, 2010). Assessment of Human Resources (HR)problem in the past decade was conducted by an Emotional QualityInventory institute (EQI) which stated that professionals who weresampled from around the world showed that IQ only contribute amaximum of 20% even an average was only around 6% for a person'ssuccess, rather thanEQ.Even theCarnegie InstituteofTechnology foundevidence that from 10,000 successful people, 15% of their success wasdetermined by technical skills,while 85% was dominated by personalityfactors or soft skills. EdwardWiggam in Kurniawan (2010:87) found 400peopleor10%of 4,000people lost their jobs due to technical inability,meaning that 90% of them were unemployed because they havepersonalityproblems.From the above problems, the main theme of this research is thatcharacter/soft skills havebecomea veryurgentneed forhealthworkers.Theseproblemsoccurinhealthfacilities,especiallyhospitalsofwhichaimistoprovideservicesthatarethebestandinaccordancewiththeneedsofthecommunity, friendly, communicative,politeandshowing thevalueof

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character. It requires thehospitalmanagement to integrate thevaluesofcharacterinanyactivityperformedbythehealthworkers.They,whohavegoodcharacter,areexpected toanswer thechallenges in thecommunityandimprovetheirqualityofserviceinordertoachievepatientsatisfaction.

II.LiteratureReviewandResearchFramework

SoftSkills

Softskillsare personalattributesorabilitiestomanage oneself and tobuild relationshipswith otherpeopleeffectively.Theabilities tomanageoneself can be said as intrapersonal skills, while the abilitaies to buildrelationshipswithotherpeoplecanbesaidasinterpersonalskills.Hardskillsaretheabilitiesof individualsthatcanbeseenexplicitly intheformofbehavioralandtechnicalskillstoaccomplishspecifictasks.Masteryofsoftskillswillbeabletopushbetteracquisitionandutilizationofhardskills.Thesuccessofapersonisnotonlydeterminedbyknowledgeandtechnical skills (hard skills),but isalsodeterminedby the skill tomanageonself and others (soft skills). According to the research from HarvardUniversity, United States, a person's success is determined by the hardskillsandsoftskills,withaweightof15%and85%respectively.Meanwhile, Deepa & Seth, (2013) revealed that soft skills consist ofpersonality traits, character and commitment to the job that can makesomeonethetotalityofthework.Characteristicsoftheindividualincludeteam skills, communication skills, leadership skills, customer service skillsand problem solving skills. Salleh, (2010) described that soft skills areinterpersonal skills, technology ability and ability to communicate andthese things are very important and necessary in an effort to improveservicestocustomers.ConfigurationofSoftSkillTwo factors that affect the soft skills of a person in the process ofdevelopment and formation are environmental factors (nurture) andheredity (nature). The embodiment of the potential of IntelligenceQuotient (IQ), Emotional Quotient (EQ), Spiritual Quotient (SQ) andAdverse Quotient (AQ) of a person is part of a theoretical overview ofcharacterbehaviorpsychologically.

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AccordingLickhona(2012)andFathurrohman(2013),theconfigurationofcharactersinthecontextofthetotalityofpsychologicalandsocio-culturalprocessescontainsgradingability,moralcapacityandfortitudeinthefaceofdifficultiesandchallengescoherentlywillradiatefromtheresults:1. Soulpractice(spiritualandemotionaldevelopment)withregardtothe

feelingsofattitudesandbeliefs/faiththatproducehonestperson.2. Mindpractice (intellectual development)with respect to theprocess

of reasoning in order to find and use intelligence in critical, creativeandinnovativemannerproducedfromexperiences.

3. Exercise and kinesthetic (physical and kinesthetic development)withregard to the process of perception, readiness, impersonation,manipulation,andthecreationofnewactivities thatproducestrongpersonalsportsmanship.

4. Exercise and Mind (affectiveness and creativity development) withregardtotheaffection.

TrainingGarryDessler(2004:216)definedtrainingasTheprocessofteachingnewemployees thebasic skills theyneed toperfom their jobs.VeithzalRival(2009: 211), in his book of human resources management for theenterprise (second edition), defined training as a part of education thatinvolves learning to acquire and improve skills outside of the educationsystem in force in a relatively short timewith themethod emphasizingmoreonpracticethantheory".Improved capabilities, knowledge and skills of the talented workforceprovedtobeamajorsourceofcompetitiveadvantage inaglobalmarket(McKinsey,2006).Todevelopthedesiredknowledge,skillsandabilitiesofthe employees, to perform well on the job, requires effective trainingprograms that may also effect employee motivation and commitment(MeyerandAllen,1991).The companies that aimed at gaining the competitive advantage realizedthe importance of training in improving the performance of employees.Pastresearchesprovideevidenceregardingthepositiveaffectoftrainingprograms on both employee and organizational performance. On onehand, previous work in the field proved that effective training programsleads to superior return on investment while the other researchesmentioned thepositive roleof training inattaining thesupreme levelsof

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employeeretention(Colarelli&Montei,1996;Becker,1993).Bartel(1994)reportsthatthereisapositivecorrelationbetweeneffectivetrainingprogramandemployeeproductivity,howevertomakeitpossible,(Swartetal.,2005) it is theresponsibilityof themanagers to identify thefactors thathinder trainingprogrameffectivenessand to takenecessarymeasurestoneutralizetheireffectsonemployeeperformance.Inaddition,Ahmad and Bakar (2003) concluded that high level of employeecommitmentisachievediftrainingachievelearningoutcomesandimproveperformance, both on individual and organizational level. These findingsarealsoconsistentwiththeresultsofKim(2006)researchwork.Fromtheabovedefinition, itcanbeconcludedthattraining isnotagoal,butatoolofmanagementtoachievecorporateobjectiveswhich iseffortand responsibility of the highest leadership of the employees who areresponsible.Withtraining,employeeswillbeabletomakechangesinworkhabits, attitudes, behavior, skills and knowledge . Trainingmust also bedonecontinuouslyinordertoadapttothedevelopmentofsciencetoday.HealthWorkerPerfomanceAccordingtoLawNo.36of2014onhealth,healthworkersaredefinedasall people who are devoted to the health sector and have knowledgeand/or skill through education in health for certain types require theauthority to make health efforts. As for health workers in question aremedical personnel (physicians, dentists and specialists). Health Workersaregroupedinto:medicalpersonnel;powerofclinicalpsychology;nursingpersonnel; midwifery personnel; pharmacy personnel; community healthworkers; environmental health personnel;nutritional power; Physicaltheraphy; technicalmedicalpersonnel;biomedicalengineeringpersonnel;traditionalhealthworkers;andotherhealthprofessionals.Thehealthworkershaveimportantrolestoimprovethequalityofhealthcaretothepublicsothatthepublicisabletoraiseawareness,willingnessandabilityofhealthylivingthatwillmanifesthealthstandardashighasaninvestmentforthedevelopmentofhumanresourcesproductively,sociallyandeconomicallyaswellasoneelementofgeneralwelfareassetforthinthePreambleoftheConstitution1945oftheRepublicofIndonesia.Employee performance is higher in happy and satisfied workers and the

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management finds it easy to motivate high performers to attain firmtargets.(KinickiandKreitner,2007).AccordingtoHawthorne’sstudiesandmanyotherresearchworkonproductivityofworkershighlightedthefactthat employees who are satisfied with their job will have higher jobperformance, and thus supreme job retention, than those who are nothappywiththeirjobs(Landy,1985).Theemployeecouldonlybesatisfiedwhen they feel competent to perform their jobs, which is achievedthroughbettertrainingprograms.Monitoring and evaluating staff performance require consensus on itscomponentsandindicators.Accordingtotheanalyticalframeworkappliedhere, the following levels can be distinguished and measurable by anumberofindicators(WHO,2006;Buchan,2005;Hornby&Forte,2002).

Table1.IndicatorsforHealthWorkerPerformanceFactors Examplesofindicators

OutcomePerformance Composite of the four elements mentioned under

effects. Improvement in these fourelements indicatesimprovedperformance

EffectsAvailability Waiting time, staff ratios, overtime, staff turnover,

attendanceofhealthworkersProductivity Occupancy rate, outpatient visits and interventions

providedperworkerorfacility.Patientcontacts

Competences Prescribing practices,adherence to protocol duringdiagnosisandcommunicationwithpatients

Responsiveness Client satisfaction,readmission rates and cross-infections,case fatality rates,proactivequality service,e.g.decubitusulcers

OutputsRetention Vacancies,postsfilled,durationinjobAbsence Attendanceofhealthworkers,overtimeBeingheldaccountable

Levelofresponsiveness,adherencetorulesandstandardoperatingprocedures

Skillsandknowledge

Levelofskillsandknowledgeofpractices

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Motivationandjobsatisfaction

Levelofjobsatisfactionandlevelofstaffmotivation

Workingconditions

Availabilityofinfrastructure,medications,supplies,communicationproceduresanddecision-makingprocesses

PatientSatisfactionGerson, (2004) defined satisfaction as the shape of one's feelings aftergaining experience to service performance that has met expectations.Based on Kotler & Philip (1995), satisfaction is feeling happy ordisappointed that emerged after comparing the perception of theperformanceortheresultofaproductorserviceandhope.Hafizurrahman,(2004:283-288)saysthatpatientsatisfactionisthepatient’sfeeling of pleasure or disappointment that comes from a comparisonbetween the impression of the performance/results of a product withexpectations.Based onWilliam (1994), Urdent (2002) andWare (1983), the quality ofmedicalcarehastraditionallybeenjudgedbydiscreteparameters,suchascomplicationratesandmortality.Inrecentdecades,healthcareprovidershavebeguntounderstandthatpatients’perceptionsoftheircarearealsoimportant to the patients. Patient-reported measures, including patientsatisfaction, have emerged with the concept of patient satisfactionincreasinginpopularityandeconomicimpact.William (1994) says that in outcomes assessment language, a broadconcept such as patient satisfaction is termed a construct. Variousconstructs of patient satisfactionhavebeendelineated; in general, theseconsist of both a cognitive evaluation and an emotional reaction toprovided care. In addition, Pascoe (1983) says that patient satisfactionincludes an individual’s evaluation of distinct dimensions of health care.Potentialdimensionsofthisconstructincludepatientinteractionswiththeproviderandwiththephysicalenvironment.Anotherdefinitionofpatientsatisfaction from McGregor (1976) says that patient satisfaction is thecongruence between expectations and outcomes,with the care receivedbeing judged against expectations that depend on variables such aseducation,attitudes,andpriorexperiences.

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According to Gerson (2004), the main benefit of the measurementprogram is the availability of immediate feedback, means and objective.Theresultsofmeasurementsofordinarypeopleindicatehowtheydothejob,contrastingwiththestandardofworkanddecidewhatshouldbedonetomake improvementsbasedon thesemeasurements.Thereare severalbenefitsofsatisfactionmeasurementsasfollows:a. Measurements cause a person to have a sense of success and

achievement, which is then translated into excellent service tocustomers.

b. Measurements are commonly used as the basis for determiningperformance standards to be achieved, which direct them towardsbetterqualityandincreasedcustomersatisfaction.

c. Measurements provide immediate feedback to the performers,especiallywhen the customers themselvesmeasure the performanceofexecutiedorprovidedservices.

d. Measurements tell you what to do to improve the quality andcustomer satisfaction, how to do it, whereby this information alsocomefromcustomers.

e. Measurementsmotivatepeople toperformandachievehigher levelsofproductivity.

According Nursalam (2003), the level of customer satisfaction can beclassified into several levels, namely: very dissatisfied (1), dissatisfied (2),somewhatsatisfied(3),satisfied(4),verysatisfied(5).Patientswillfeelverydissatisfied if the results of the services provided by nurses/patients getwellbelowexpectations;iftheresultsoftheservicesprovidedbynursesdonotmeet the expectations of the patients then theywill feel dissatisfiedwith the services they received.Patientswillbe somewhat satisfied if theservices provided by nurses already meet most of the expectations ofpatients.Patientswillbesatisfiediftheservicesprovidedbynursesalreadymeettheaverageexpectationsofpatients,andtheywillfeelverysatisfiediftheservicesprovidedbynursesexceedtheexpectationsofpatients.AccordingtoLochoro(2004:248),theachievementoffunctionandpurposeof a hospital does not only depend onmodern equipment, facilities andinfrastructure, but it is more dependent on the Human Resources (HR)undertaking the work. Human resources are the basic elements of anycompany, because human resources are the maker of objectives,innovation,communicationsandstrategy for thecompany,sothesuccess

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of an organization is influenced by the level of performanc of its humanresources. Given the importance of employee performance in achievingcorporate goals, companies are required to make efforts to improveemployee performance, including job skills, competence and discipline atwork.Patient satisfaction was assessed using the Core Questionnaire for theassessmentofPatientSatisfaction(COPS).TheCOPSisreliableandvalidinaclinicalandoutpatientversion.Further informationonthedevelopmentand validation the COP can be found in an earlier publication. The COPSconsistsofsixqualitydimensions:“Admission”/“Reception”(2or3 items),“Nursingcare”(2items),“Medicalcare”(2items),“Information”(4items),“Autonomy” (2 or 3 items) and “Discharge and aftercare” (2 or 3 items).The six dimensions of the inpatient and outpatient version are equal,however some questions are different, given the different nature of theinpatientandoutpatientdepartments.

ResearchFrameworkThesuccessofahospitalisstronglyinfluencedbytheperformanceoftheentire staff, bothhealthprofessionals andnon-medicalpersonnel. Thus,hospitals are always trying to improve the performance of healthpersonnelinthehopethattheworkdonebythehealthworkersisabletoprovide advances for hospitals by improving the quality of health careprovided to the public. Research has shown that an employeewho hasgoodsoftskills will transform intoadocileperson in theworkandberesponsibleforhis/herwork,abletocontrolandmanageemotions,andable to establish a harmonious relationship with fellow employees,communities surrounding work environment as well as the society inwhichhe/shelives.He/shewillbeabletomanagehim/herself,initiative,optimism, capable of coordinating inner emotions, quiet thoughts andtakingactionswithoutcarriedemotion.9Softskillshaveabigportioninsupportingaperson'ssuccess inenteringthe world of work. Good hard skills without being supported bypersonalityorsoftskillswillbefutile(Ismail,2007).AccordingtoresearchfromHarvardUniversity, United States inNational Soft Skill Association(2006),aperson'ssuccessisdeterminedbythehardskillsandsoftskills,withaweightof15%and85%respectively.

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Basedonthedimensionsofsoftskillsmentionedabove,wewillconductresearch on the effect of soft skills training on patient satisfactionwiththeframeworkdescribedbelow:

SoftSkills(Before)DevelopmentTraining(After) (X)

Figure1:ResearchFramework

II.ResearchMethodology

ResearchDesign

The design used is Pre-Experimental Study, using two groups of pre-posttest design. Correlation comparative research is conducted to determinethecomparisonofdimensionalvalueofsoftskillstowardperformanceandpatientsatisfactionbeforeandafterthetraining.

OperationalizationofVariables

The variables that are used in this study are Soft Skills DevelopmentTraining (X)as independentvariable, andHealthWorkerPerformance (Y)andPatientSatisfaction(Z)asdependentvariables.Stagesofthisresearchdesignconsistofplanning, implementation,observationand reflectionasfollows:

Y1àXàY2

SoftSkills1. Communication

Skills2. Customer

ServiceSkills3. ProblemSolving

Skills4. TeamSkills5. Interpersonal

Skills6. LeadershipSkills

HealthWorkerPerformance

PatientSatisfaction

• HealthworkerPerformance(Y1)

• PatientSatisfaction(Z1)

• HealthworkerPerformance(Y2)

• PatientSatisfaction(Z2)

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Z1àXàX2Remark:Y1:healthworkerperformancebeforetrainingZ1:PatientSatisfactionbeforehealthworkersaregiventrainingX:SoftSkillsDevelopmentTrainingforhealthworkers Y2:healthworkerperformanceaftertrainingZ2:PatientSatisfactionafterhealthworkersaregiventraining

Table2.OperationalizationofVariables

Variable Operational

definition

Measuring

instrument

Measurementresults

SoftSkills TheabilityofhealthworkerstocommunicateeffectivelyMentalstatethatmakesapersonfeeloridentifyhimselfinastateofthesamefeelingsorthoughtswithanotherpersonorgroup;

Observation,questionnaires,interviewsreflection

1. Very good (91% -100%)

2. Good(81%-90%)3. Goodenough(61%

-80%)4. Poor(41%-60%)5. VeryPoor(≤40%)

Soft SkillsDevelopmentTraining

Amethodorlearningactivitiestoacquireandupgradetheknowledgeandskillsinthedevelopmentofsoftskillsusingintegratedmodules.

Observation,questionnaires,interviewsreflection

1. Very effective(91%-100%)

2. Effective (81% -90%)

3. Effective Enough(61%-80%)

4. Poorly effective(41%-60%)

5. Very poorlyeffective(≤40%)

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Performance Performanceastheresultsofjobfunctions/activitiesofapersonorgroupinanorganizationthatisaffectedbyavarietyoffactorstoachieveorganizationalgoalswithinaspecifictimeperiod

Checklistsheets,questionnaires,interviews

1. Very good (91% -100%)

2. Good(81%-90%)3. Goodenough(61%

-80%)4. Poor(41%-60%)5. VeryPoor(≤40%)

Patientsatisfaction

Patientsatisfactionispatient’sfeelingofpleasureordisappointmentthatcomesfromcomparingtheperceivedperformance/resultsofaproductwithexpectations.

CoreQuestionnairefortheassessmentofPatientSatisfaction(COPS)

1. Very satisfied,(91%-100%)

2. Quite satisfied(81%90%)

3. Somewhatsatisfied (61% -80%)

4. Unsatisfied (41% -60%)

5. Veryunsatisfied (≤40%)

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ResearchFlowchart

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Figure2.ResearchImplementationFlowchart

Sampling&DataCollection

ThesampleusedinthisstudyisagroupofhealthworkersatRSIALembangwhohavebeenworkinglessthan2yearswithpermanentemployeestatus.Thedataused in this studyareprimaryandsecondarydata.Theprimarydata are gained from questionnaires which are given to health workers,peer group and their assesors that have been choosen and through

FirstStep:PrelimnaryStudy

Softskillsdevelopmenttrainingmodulesforhealthworkers

consultationandcooperationwithsoftskilltrainerexpert

ResearchApproval

ResearchEnforcement

• Pre-test• Training• Posttestà1-3weeksaftergiventraining• Observationfor3months

EvaluationandDataAnalysis

DiscussionandConclusion

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interview and observation containing questions about work perfomanceandtheuseofCOPStodeterminepatientsatisfaction.Thesecondarydataare gained from hospital documents, books, journals, articles, andmagazines about work-life balance, job satisfaction, and employeeturnoverintention.DataAnalysis

All data gathered from the questionnaires will be analyzed usingcomparativestudytotwogroupbyMcNemarTesttowardhealthworkerperformanceandpatientsatisfactionbeforeandafterhealthworkersaregiven training.The correlation of Pearson Product Moment is used toanalyze thecorrelationor influencebetween twovariables. In this study,therewill be two kinds of correlation, that are correlation between softskills training variable andperfomance variable; and correlationbetweenperfomancevariableandpatientsatisfactionvariable.References:

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anOrganization”.TheIUPJournalofSoftSkills,Vol.III,Nos.3&4..Senior Lecturer, Department ofManagement, Jaipuria Institute ofManagement, Lucknow, India. E-mail: deepa@jiml.ac.in . IUP. AllRightsReserved.

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ANALYZINGEMPLOYEEENGAGEMENTINDEX(EEI)

INPTINDONESIAPOWER–KAMOJANGGEOTHERMALPOWERPLANT

ZakaBudiPrasetiyo;StudentID120820150008;zakabudi@gmail.com

Hidayat;StudentID120820150049;dayat_1090@yahoo.comMasterofManagementProgramFacultyofEconomicsandBusiness

UniversitasPadjadjaran(MMFEBUNPAD)

INTRODUCTION

BackgroundIndonesia's employee engagement score was ranked the highest amongthe Asia Pacific countries. Seventy-five percent (75 percent) of theemployeesspeakpositivelyabouttheorganizationandwanttoputinextraeffort for the company; Indonesia also had the smallest proportion ofactivelydisengagedemployees.InspiteofthisencouragingengagementtrendforIndonesia,considerabledisparity exists between Indonesia Best Employers and the marketaverage.The IndonesiaBestEmployersnotonlyenjoysignificantlyhigherengagementscoresfromtheiremployees(89percent)thantheIndonesiamarketaverage(71percent), theyalsooutperformthemarketbyscoringan averageof 23 percent higher thanmarket average in the four driverswith which Indonesia employees were "least satisfied" − benefits (73percent), pay (76 percent), career opportunities (76 percent), and brandalignment(76percent).Indonesia Companies Need to Capitalize on Improving EmployeeEngagement -HighEngagementHigherGrowthandLowerAttrition:BestEmployers in Indonesia achieved 4 percent higher growth and 4 percentlower employee attrition levels than study participants. Best Employersalsosuccessfullyfilled20percentmorejobopeningsinternally,comparedwithotherstudyparticipants.BestEmployersdonotfacethesamedegreeof challenge in attracting talent with critical skills to support theirbusinesses.Generation Y: Engaging Generation Y emerged as a key focus for BestEmployers in Indonesia with a distinctly high engagement score of 81

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percent in this age group. According to Lusi Lubis, managing director ofAonHewittinIndonesia,BestEmployersinIndonesiaknowhowtoengageGen Y by offering activities and initiatives that are aligned with theircompetitive nature rather than merely rewarding them with financialincentive.However,thisisnotthecasewiththemarketingeneralwheretheGenYaverage score (61 percent) is 20 percentage points lower than the BestEmployers and 10 points lower than the market general average (71percent).The chart above shows that Gen Y is the least engaged as a populationsegment.AddressingthisgapbytailoringHRprogramsspecificallytoGenYskillsandexpectations isaprimeopportunityfororganizationsseekingtoimprovetheiremployeeengagementlevel.

Figure4

IndonesiaEmployeeEngagementbyGeneration

Career opportunities, brand alignment and benefits continue to be topdrivers for improving employee engagement in Indonesia, includingGeneration Y population. Key engagement drivers for Gen Y and JuniorManagement are also unique in that both populations rank "pay" moreimportantly(fourth),whileitisnotevenrankedamongthetopsixdrivingfactorsbyothergenerations.

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ResearchObjectivePT IndonesiaPower isasubsidiaryofPTPLN(Persero),previouslynamedPT PLN Pembangkitan Tenaga Listrik Jawa Bali I (PLN PJB I) and wasestablishedon3October1995asasteptostartbusinessindependenceinthepowergenerationsector in Indonesia. In2014,theCompanychangeditsvisionandmission, inwhich thenewvision is“Tobea trustedenergycompany with sustainable growth”, while the mission was changed into“Conducting the business of power generation and related services thatare friendly to theenvironment”.Tosupport thenewvisionandmission,theCompanyestablished itscorecompetencies,namelyPlantOperationsandMaintenanceandPlantDevelopment.To be able to achieve the aforementioned targets, the Companyestablished the six Corporate Strategy 2014-2018 which was formulatedbasedontheSWOTanalysiscontaining:1. Improve the availability, reliability and efficiency of thermal power

plantsandenvironmentallyfriendly.2. Perform power plant development (Non-fuel including renewable

energy)andownershipofcoalmines.3. DevelopO&Mservicesbusinessforvarioustypesofpowerplants.4. ImprovesecurityandthesupplyamountofNon-fuelprimaryenergy.5. Strengthen the Company’s portfolio management of power plant

assets.6. StrengthentheCompany’scorecompetencies.The main strategy is mapped into four Balanced Score Card (BSC)perspectives,whichconsistof17StrategicObjectives(SO).

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Figure5TheCompany’sStrategies(basedonBalancedScorecardPerspective)

InordertoalignthemanagementofHumanResourceswiththeCompany’sobjectivesandstrategies,aswellastocreateaworkingenvironmentthatis conducive to increased performance, Indonesia Power has formulatedvarious HR policies that are evaluated and updated regularly andsystemically. In addition, the formulation of HR policies is undertakenthroughseveral stages toensure itsquality.Thesestages include internaldiscussionsattheHRDirectorate,inter-Directoratediscussionsasneeded,aswellasdiscussionswiththeEmployeeUnionandtheLegalDepartment.In the interestof improvement,employeesmayprovide feedbackon theimplementation of HR policies through the Human Resource SatisfactionandEngagement(HRSE)surveysconductedregularlyandalsothroughtheEmployeeUnion.Implementation of Employee Engagement Index (EEI) surveys in acontinuingmanner inorder to identify factors thatcansupport increasedengagementlevel.

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The declined EEI in 2015becamehomework formanagement to see thereal conditions in the field. The following figure shows the results andtrendsof2015EEISurvey:

Figure6

Source:PTIndonesiaPower

The 2015 survey generated an EEI index number of 82.66%. This figureactually rose from3.80% in thepreviousyearbut it cannotbesaid tobebetterthanthefiguresinthepreviousyears.The 2015 survey, resulted in the drivers that must be acted upon bymanagement,wherethepercentageshowedasfollows:

Figure7DriversofEngagement

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TheDriversareexplainedasbelow:1. Job Design (work distribution management, clarity of roles and

demandsofemployees)2. OrganizationalHealth(Companypoliciesthatsupport)3. ManagerialExcellence(leadershipabilitytomanagetheorganization)4. Extrinsicrewards(policy-relatedcompensation)5. WorkplaceReadiness (whichallowsemployeestobeabletoperform

task&responsibility)6. Others(careers,employment,jobsecurityfacilities)

LITERATUREREVIEW

EmployeeEngagementWilliamKahnprovidedthefirst formaldefinitionofpersonalengagementas"theharnessingoforganizationmembers'selvestotheirworkroles; inengagement, people employ and express themselves physically,cognitively,andemotionallyduringroleperformances.In1993,Schmidtetal.proposedabridgebetweenthepre-existingconceptof 'job satisfaction' and employee engagement with the definition: "anemployee'sinvolvementwith,commitmentto,andsatisfactionwithwork.Employee engagement is a part of employee retention." This definitionintegratestheclassicconstructsofjobsatisfaction(Smithetal.,1969),andorganizationalcommitment(Meyer&Allen,1991).Defining employee engagement remains problematic. In their review ofliterature in 2011, Shuck andWollard identified four main sub-conceptswithintheterm:1. "Needssatisfying"approach,inwhichengagementistheexpressionof

one'spreferredselfintaskbehaviors.2. "Burnoutantithesis"approach,inwhichenergy,involvement,efficacy

are presented as the opposites of established "burnout" constructs:exhaustion,cynicismandlackofaccomplishment.

3. Satisfaction-engagement approach, in which engagement is a moretechnical version of job satisfaction, evidenced by Gallup's ownQ12engagement survey which gives an r=.91 correlation with one (jobsatisfaction)measure.

4. The multidimensional approach, in which a clear distinction ismaintainedbetweenjobandorganisationalengagement,usuallywith

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the primary focus on antecedents and consequents to roleperformanceratherthanorganisationalidentification.

Nitin Vazirani (2007) describe in his paper focuses on how employeeengagement is an antecedent of job involvement and what companiesshould do to make the employees engaged. Employee Engagement hasbecomeabuzz word for employee communication. But it’smore thanjustabuzzword,itisapositiveattitudeheldbytheemployeestowardstheorganizationanditsvalues.Wealreadyknowthatengagementhasbecome a priority for many organizations. Employee engagement is thelevel of commitment and involvement an employee has towards theirorganization and its values. An engaged employee is aware of businesscontext,andworkswithcolleaguestoimproveperformancewithinthejobforthebenefitoftheorganization.Criticalfactorstomovingbeyondbuzzwords:1. Career Development- Opportunities for Personal Development.

Organizations with high levels of engagement provide employeeswithopportunitiestodeveloptheirabilities,learnnewskills,acquirenewknowledgeandrealizetheirpotential.Whencompaniesplanforthe career paths of their employees and invest in them in thiswaytheirpeopleinvestinthem.

2. Career Development – Effective Management of Talent. Careerdevelopment influences engagement for employees and retains themost talented employees as well as provides opportunities forpersonaldevelopment.

3. Leadership – Respectful Treatment of Employees. Successfulorganizations show respect for each employee’s qualities andcontribution–regardlessoftheirjoblevel.

4. Empowerment. Employees want to be involved in decisions thataffecttheirwork.Theleadersofhighengagementworkplacescreatea trustful and challenging environment, in which employees areencouraged to dissent from the prevailing orthodoxy and to inputandinnovatetomovetheorganizationforward.

5. Image.Howmuchemployeesarepreparedtoendorsetheproductsand services which their company provides its customers dependslargely on their perceptions of the quality of those goods andservices.Highlevelsofemployeeengagementareinextricablylinkedwithhighlevelsofcustomerengagement.

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6. Performanceappraisal.Fairevaluationofanemployee’sperformanceis an important criterion for determining the level of employeeengagement. The company which follows an appropriateperformanceappraisaltechnique(whichistransparentandunbiased)willhavehighlevelsofemployeeengagement.

7. Job Satisfaction.Only a satisfied employee canbecomean engagedemployee.Thereforeitisveryessentialforanorganizationtoseetoitthatthejobgiventotheemployeematcheshiscareergoalswhichwill make him enjoy his work and he would ultimately be satisfiedwithhisjob.

8. Communication. The company should follow the open door policy.There should be both upward and downward communication withtheuseofappropriatecommunicationchannelsintheorganization.Iftheemployeeisgivenasayinthedecisionmakingandhastherighttobeheardbyhisboss then theengagement levelsare likely tobehigh.

9. Family Friendliness. A person’s family life influences his work life.Whenanemployeerealizesthattheorganization isalsoconsideringhis family’sbenefits,hewillhaveanemotionalattachmentwiththeorganizationwhichleadstoengagement.

10. Co-operation. If the entire organization works together by helpingeachotheri.e.alltheemployeesaswellasthesupervisorscoordinatewellthentheemployeeswillbeengaged.

ThreeTypesofEmployeeEngagement:1. Actively Disengaged: This is the first category of people who are

unhappy and spread unhappiness in the organization. They are thedisease centres in the company and spreading the negative word,provokingandconvincingpeopletoleavetheirjobs.Howevertheyarethe ones who stay the longest and removing the perceived peoplecompetition is their thoughtofgettingtothetopornext level in thejob.

2. Engaged: The second category of people are those who can beidentified with words like passion, alignment and innovation; whichmeans that they are passionate, connected to the company andinnovative. They contribute new ideas and turn ideas into reality.These employees are positive in their outlook and spread positivity.They are proactive; can anticipate the futuremarket conditions andarepreparedwellinadvance.

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3. NotEngaged:Thethirdtypeofemployeesisthelargemajoritypresentin organizations with almost 50% in number. These employees dowhatistoldonlyandtheylikeonlyoneinstructionatatime.Theyputin time but not energy and passion. Theymay be either positive ornegativeintheiroutlookandopinionabouttheorganization.Theyarenot proactive and fail to anticipate what might be required next orwhatthenextstepis.Theywaitforinstructionfromtheirsuperiors

HumanCapitalManagementPioneeringeconomistJohnR.Commonsusedtheterm"humanresource"in his 1893 book “The Distribution ofWealth” but did not further buildupon it. The term "human resource"was subsequently in use during the1910sand1920saswasthenotionthatworkerscouldbeseenasakindofcapital asset. Among scholars, the first use of "human resource" in itsmodernformwasina1958reportbyeconomistE.WightBakke.Thetermbegan to become more developed in the 19th century due tomisunderstandingsbetweentheemployersandemployees.HR is a product of the human relations movement of the early 20thcentury,when researchersbegandocumentingwaysof creatingbusinessvalue through the strategicmanagement of the workforce. The functionwasinitiallydominatedbytransactionalwork,suchaspayrollandbenefitsadministration, but due to globalization, company consolidation,technological advances, and further research, HR as of 2015 focuses onstrategic initiatives like mergers and acquisitions, talent management,succession planning, industrial and labor relations, and diversity andinclusion.Human Resource is a business field focused on maximizing employeeproductivity.HumanResourcesprofessionalsmanagethehumancapitalofan organization and focus on implementing policies and processes. Theycan be specialists focusing on recruiting, training, employee relations orbenefits. Recruiting specialists are in charge of finding and hiring toptalent.Traininganddevelopmentprofessionalsensurethatemployeesaretrained and have continuous development. This is done through trainingprograms, performance evaluations and reward programs. Employeerelationsdealswithconcernsofemployeeswhenpoliciesarebroken,suchas harassment or discrimination. Someone in benefits developscompensation structures, family leave programs, discounts and other

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benefitsthatemployeescanget.OntheothersideofthefieldareHumanResources Generalists or Business Partners. These human resourcesprofessionalscouldwork inallareasorbe laborrelationsrepresentativesworkingwithunionizedemployees.AccordingtoR.Buettner,HRMcoversthefollowingcoreareas:1. JobDesignAndAnalysis,2. WorkforcePlanning,3. RecruitmentAndSelection,4. TrainingAndDevelopment,5. PerformanceManagement,6. Compensation(Remuneration),And7. LegalIssues.ResearchFramework

Figure8ResearchFramework

RESEARCHMETHOD/HYPOTHESIS

Qualitative method will be conducted to understand the EmployeeEngagement inPT IndonesiaPower–KamojangGeothermalPowerPlant.We will use a survey approach and gather information from therespondentstofigureouthowtheengagementcouldeffectivelydrivesitsvariables. As a survey, this analysis will use the National Company inIndonesia, a subsidiary of PT PLN (Persero), PT Indonesia Power. It hasbeen known as a company that consistently measures the employeesatisfaction&engagementindexsince2011.

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OperationalizationofVariableVariable Drivers

EmployeeEngagement

JobDesignOrganizationalHealthManagerialExcellenceExtrinsicRewardsWorkplaceReadinessOther

RESEARCHPURPOSE,LIMITATION,ANDORIGINIALITY/VALUE

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THEROLEOFWORD-OF-MOUTHCOMMUNICATIONANDCONSUMER

MOTIVATIONTOWARDSCONSUMERDECISIONMAKINGINFUTURES

INVESTMENT(CASESTUDYATPTVALBURYASIAFUTURES)

AdityoG.Ramadhan,StudentId120820150010,Adityo_Gr@Yahoo.Com

ChristianGultom,StudentId120820150043,Christiandggultom@Gmail.Com

MasterOfManagementProgram,FacultyOfEconomicsAndBusinessUniversitasPadjadjaran(MMFEBUnpad)

I.RESEARCHBACKGROUND

Investment is a decision made by someone with an intention to growwelfare, specifically in terms of material welfare. Investment is done bybuying assets, either tangibles or intangibles, hoping it will turns intoprofits in the future.Depend from thepointof view,either financiallyoreconomically, investment may have different definitions. Regardless ofhow to define it, investors surely want profit from the growth of theirinitialinvestmentinthefuture.Oneexampleofinvestmentsthatisstillnotpopularamongmostpeopleisinvestmentof financialproducts, suchas stock,mutual funds,deposit,orfutures. From those types of financial product investment, futuresinvestmentisarguablytheleastpopular,evenalmostbeavoided.Futuresinvestmentisaconceptoftradinginvestmentinfinancialproductssuchasforeign exchange, commodity, or stock index. In futures investment,investorspredict themovementofprice for a futuresproduct. Thispriceprediction is done by analyzing the futures product, both fundamentallyand technically. After conducting analysis, the investors can predict thebestpositionofthebestpricetoenterfuturesmarket.Ifthispredictionisdone correctly, the investors will gain profits from the transaction. Viceversa, if the prediction is incorrect, investorwill have to experience loss,untilthepointoftheirequityisnolongerstrongenoughtoholdtheloss.One of the characteristics of futures investment is that investors can dotransactionswithleverageeffect.Withleverage,investorscanuseasmallinitial equity, and achieve a bigger profit. The leverage ratio depends onthe brokerage firms. For example, the most common leverage ratio is1:100.Withthisratio, investorscanmakeatransaction infuturesmarketwithonly$1.000,andtheprofit fromthetransactionwillmultiplyby100

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sothegainedprofitisbiggerthanitshouldhavebeen.Andviceversa,thisleverage effect will also apply for investors who are experiencing loss intheirtransaction.Thisleverageeffectisthesourceof“HighRisk,HighReturn”characteristicinfuturesinvestment.Futuresinvestmentisconsideredtohaveaveryhighrisk.When investorsdotheirpredictionscorrectly, thentheprofitgainedwillbealsobig.Butiftheirpredictionsareincorrect,thenthelosswillalsobeverysevere.Thisiswhatalotofpeopleavoidfromfuturesinvestmentasanalternativetodoaninvestment.PT Valbury Asia Futures is one of the brokerage firms that offers theconceptof futures investment.Mostof thetime,PTValburyAsiaFuturesconducts marketing activities, where the marketers are most commonlyknown as Wealth Management Executive (WME). The main activities ofWME are to find and get new clients for PT Valbury Asia Futures. Theseprospectiveclientsareacquiredbycontactingdirectacquaintancesorevenby approaching complete strangers whom are categorized as thesegmentedtargetconsumers.WMEhavetoexplainthisconceptoffuturesinvestmenttotheirprospectiveclients,withtheirownmarketingskillsandcommunication.If a prospective client has agreed to become a client in PT Valbury AsiaFutures, the client will have to transfer money as initial equity to asegregatedaccount,whichwillbean independentaccount for theclient.Whenthemoneyhasbeentransferred,thentheaccountwillbeactivatedand the client will be able to start making transactions in futuresinvestment.Foreverytransaction, therewillbeacommissiontakenfromthe client’s profit (or loss). The commissions will be an income for PTValbury Asia Futures as the brokerage firm that represents the client infuturesexchange.PTValburyAsiaFuturesBandungbranchhasbeenestablishedsince2000.Everyyear, theheadoffice in Jakartaalwaysgivesa targetofnewclientsforeverybranch, includingBandungbranch.Thistarget includesthetotalofnewclientsandinitialequity.Basedonthedataofthelast5years,thecomparisonoftargetandachievementofPTValburyAsiaFuturesBandungbranchispresentedasfollows:

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Figure1ComparisonofTargetandAchievement

Looking at the last 5 years, the company should concern about for theachievementforthenextyears,becauseitshouldnotbetoofarfromtheprevious one. Every year, therewill always be growth in target from theheadoffice.Iftheachievementhasn’tshownanyimprovement,itmightbeharderforPTValburyAsiaFuturestoachievethetargetforthenextyear.II.LiteratureReview

Word-Of-MouthCommunicationWord-of-mouth is communication about products and services amongpeoplewhoareperceivedtobeindependentofthecompanyprovidingtheproducts or services, in a medium perceived to be independent of thecompany. This communication can be conversations, or just one-waytestimonials. But the essential element is that they are from or amongpeople who are perceived to have little commercial vested interest inpersuading someone else to use the product and therefore no particularincentivetodistortthetruthinfavoroftheproductorservice(Silverman,2001, p. 25). The fundamental objective of word-of-mouth marketing isgettingpeopletotalktoothersaboutsomethingsothatsomethingismoreheavilyutilized.The fundamentalobjectiveofword-of-mouthmarketing isgettingpeopletotalktoothersaboutaproductorservicesothattheyaremoreheavilyutilized.Morespecifically, getting“trustedadvisors” touseaproductsor

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service,andtheninformothersaboutthemisessential inword-of-mouthmarketing. Word-of-mouth is thousands of times more powerful thanconventional marketing (Silverman, 2001, p. 21). It’s because word-of-mouth marketing is basically using the traditional/offline marketingtechnique of getting folks to talk about a service positively (Kirby andMarsden,2006,p.vxii).AccordingtoRusticus(2006,p.47),word-of-mouthmarketingismorecrediblethanothermarketingtechniquesbecauseonly14 percent of people believewhat they see, read or hear in advertising.Surprisingly,90percentof thepeoplewillbelieve their family, friends,orcolleagueswhoendorsea serviceorproductbecause theyknow theydonothaveavestedinterestinit.Gettingpeopletotalkoften,favorably,totherightpeopleintherightwayabout a product is far and away the most important thing in word-of-mouth marketing (Silverman, 2001, p. 6). Word-of-mouth marketingapplicationisawholesetofofactivities.Gettingpeopletotalkabouttheproductisonlyhalfoftheprocess,gettingpeopletoactontheproductiswherethepowerofword-of-mouthmarketinglies.Gettingpeopletotalkoften,favorably,totherightpeopleintherightwayaboutyourproductisfarandawaythemostimportantthingthatyoucando(Silverman,2001,p.6).Silverman(2001,pp.183-91)alsoprovidedalistofpracticaltipsandsuggestionsforemployingword-of-mouthmarketing.Thelistincludes:• Usingexperts.Thiscouldincludeputtingtogetheranadvisorygroupof

appropriateparticipants.• Using seminars, workshops, and speeches. This could include

presentationsoraspeakersprogram.• Canned word-of-mouth. This could include CDs, web presentations,

audiotapes,videotapes.• Referralselling.Thisreferstotheuseoftestimonials.• Networking.Thismeanstobevisibleateventsandmeetingsaswellas

helpingpeoplegetinformationonthelibrary’sresourcesandservices.• Usingthedifferentmedia.This includescustomerserviceasa“word-

of-mouthengine”,usingPRthroughadvertising,brochures,etc.Balter and Butman (2005, p. 8) support the success of word-of-mouthmarketingbecause it is the“honest,genuinesharingof realopinionsandinformation about services.” It is the one-on-one interaction thatmakes

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word-of-mouthmore successful thanmost other methods of marketing.Thatiswhyword-of-mouthmarketingworksverywell.The effect of word-of-mouth is stronger in the process of evaluation ofcustomerswhoareinhighuncertaintyavoidancecultures.Theresultsalsoreflect that people belonging from a culture which has high uncertaintyavoidancegivesmuchmoreimportancetothewordsofmouthbeforetheonsetofthepurchaseoranyservice.(Schumann,etal.,2010).ConsumerMotivationMotivationpushestheconsumertopurchaseaproductratherthanother(Zanoli and Naspetti, 2002; Baker et al., 2004; Padel and Foster, 2005;Hamzaoui and Zahaf, 2009a, 2009b). Motivation is what influencesconsumer behaviour. It is broadly defined as "a drive state created byconsumer interestsandneeds" (Hawkins,Mothersbaugh,andBest,2007,p.294) thatmarketersoftenuseasabasis for segmentation (JolibertandBaumgartner,1997).Personal relevance is closely tied with the consumer's values, goals andneeds. Therefore, motivation will increase when the consumer feels asthoughsomethingisconsistentwithhisorhervaluesorcaninsomewayhelptomeetpersonalgoalsandneeds.Theseneedsareestablishedwhenthe consumerexperiencesdisequilibriumbetweenhisorherdesiredandactualstate.In a purchase situation, a consumer's behaviour is influenced by severalmotives that can be classified as manifest motives or latent motives.Manifest motives are characteristically consistent with society'spredominantvaluesystemandopenlyadmittedbytheconsumer,whereaslatentmotives are subconsciousorwithheldby the consumer for fear ofbeingjudgedbyothers(Hawkinsetal.,2007).Several theories of motivation exist. Each of these theories "attempt toidentifythefactorsthatinfluencebehavior,particularlythewaysinwhichpeoplerespondtotheactionsofthosearoundthemandtootherstimuliintheirenvironment"(Wilkinson,Orth,andBenfari,1986,p.24).AccordingtoWilkinson et al. (1986), a simple reward/exchange theorywas the firstcommonly received motivation theory; it described an employer'sexchange of purchasing power for labour in the early 1900s. In other

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words,reward/exchangetheoryrepresentsamutuallybeneficialexchangebetweentwoparties.A more widely accepted approach is Maslow's hierarchy of needs.Maslow's (1970) theoryofhumanmotivation is foundedonthe followingfourprinciples:• All humans acquire a similar set of motives through genetic

endowmentandsocialinteraction.• Somemotivesaremorebasicorcriticalthanothers.• Themorebasicmotivesmustbesatisfied toaminimum levelbefore

othermotivesareactivated.• Asthebasicmotivesbecomesatisfied,moreadvancedmotivescome

intoplay.Furthermore, Maslow (1970) suggests that once a need is satisfied it isreplaced with another. This continuous process forms the basis ofMaslow'shierarchyofneeds,whichincludesthefollowingfivebasicneedcategories : physiological (food, water, sleep and sex), safety (physicalsafety, security, stability and familiar surroundings), belongingness (love,friendship, affiliation and group acceptance), esteem (status, superiority,self-respectandesteem),andself-actualization(self-fulfillment)(Wilkinsonet al., 1986). AlthoughMaslow's need hierarchy provides a good generalframeworkofneeds,itdoesnotaccountforvariousfactorssuchascultureandintensityofneedandhowsuchfactorscanaffecttheorderofdifferentneedswithinthehierarchy.IthasbeenarguedthatMaslow'shierarchyofneedsistoobroadandsimple(Wilkinsonetal.,1986).With the introduction of Maslow's hierarchy of basic motives, severaltheoriesofmotivationweredeveloped, includingMcGuire'spsychologicalmotives. From these theories, McGuire (1976) proposed a classificationsystem,which consistsof fourprimary typesofhumanmotives includingcognitive preservation, cognitive growth, affective preservation, andaffective growth. These four types of psychological motives have beendeveloped based on a combination of the mode of the motivation(cognitive vs. affective) and the focus of themotive (preservation of thestatusquovs.growth).Cognitivemotivationemphasizesanindividual'sneedtobewelladaptedtohisorherenvironmentandtohaveasenseofpurpose,whereasaffectivemotivation addresses the need for emotional fulfillment and the

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achievementofpersonalgoals(Hawkinsetal.,2007).Motivesfocusedonpreservation concentrateonmaintaining the statusquo,whereasgrowthmotivesstressprogressandimprovement.ConsumerDecisionMakingConsumerDecision-MakingStyle“Decision-making”meanstomakechoiceamong all kinds of spare plans or alternatives; in brief, decision-makingmeanstomakeachoiceunderaspecificconditionafterconsideringsomeplans carefully (Rong, 1999). Sproles is the scholarwhopaidattention toconsumer characteristics and consumerdecision-making style at first andhe suggested consumer decision-making style was the psychological,emotional and cognitive guidance in shopping, which could dominatechoice of a consumer and most of choices on products or services of aconsumerwould be affected by one ormore decision-making styles thatcould control decisions of a consumer fundamentally in 1985. So Sprolesdefined four kind of characteristic and process for consumers’ purchasedecision-makingstyleasfollows:• Consumers’ purchase decision-making style is "the psychological,

emotionalandcognitiveguidanceofaconsumerinshopping“.• Most consumers will be affected by one or more specific decision-

making styleswhenchoosingproductsor services,whichcancontrolthedecisionofconsumers.

• Consumer decision-making style means a pattern of shopping andbuying and the mental and cognitive guidance in purchasing, inadditionitcanguidethedecision-makingofconsumers.

• Essentially,consumerdecision-makingstylecanpresentaconsumer’spersonality or some kind of psychological opinion and such kind ofmental process is existent, predictable and able to dominate thechoicesofaconsumer.

Literatures concerning consumer decision-making style mentionedconsumer decision-making style was a mental guidance of a consumer’sbehavior and the decision process prior to purchase; that is a consumerwoulduserelevantrulestoguidehisorherdecisionundereffectofvariousfactors.In empirical studies on consumer decision-making style, Sproles (1985)firstlyadopted111femalestudentsofUniversityofArizona,USAasstudy

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objectsforstudyonconsumptionprobleminshoppingandpurchasingandhedevelopedsixkindsofdecision-makingstyleasthefollowing:• Perfectionist Style:Consumersof such stylewill notonlybe satisfied

with commonproducts; theyalwayspursueproductsand servicesofthebestqualityandsearchthemcarefullyandsystematically.

• Value-consciousStyle:Consumersofthisstyleareparticularlyeasytofind products of low prices and they like to be the price comparingpurchasersandbuyproductswithcomparablylowprices.

• BrandConsciousStyle:Consumersofsuchstylearelikelytopurchaseexpensiveproductswithfamousinternationalbrandsandbelievehighpricesequaltohighquality,sotheywouldliketospendmoremoneytochoosebrandproducts.

• Novelty-and-fashionConsciousStyle:Suchconsumersnoticelatestandcreative products and like to keep up with the fashion trend andpursuediversificationinshopping.

• Shopping Avoider, Time Saver Style: In order to save shopping timeand be fast, such consumers would pay less attention to someproducts’qualityorserviceandthecomparisononpricedifference.

• Confused,Support-seekerStyle:Suchconsumersalwaysfeeltherearetoomanybrandsandshopsavailable forshoppingandconfusedduetoknowingtoomuchmarketinformation.

Sproles and Kendall (1986) developed a Consumer Decision-making StyleInvestigation(CSI)basedonthestudyofSproles(1985)toexplainorassessthe psychological guidance and corresponding guiding principles whenconsumers are making decisions in shopping, of which the study objecttypicallywas482highschoolstudentsinTucsonofUSA;theinvestigationapplied factor analysis to discuss characteristics of consumer decision-making style and supplemented two more styles – impulsiveness andhabitualorbrand-loyalorientationtowardconsumptionbesidestheabovesixkindsofstyleaccordingtoitsfindings,whicharestatedbelow:• Impulsiveness: Consumers of such style often decide to purchase

products for instant impulsivenessand lesscare forpriceorwhetherthepurchasingdecisionisthebestone.

• HabitualorBrand-loyalOrientation towardConsumption:Consumersofsuchstyleparticularlylikespecificbrandsandshopsandwouldliketopurchaseproductsofthesebrandsorgotheseshopsrepeatedly.

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Consumerdecision-makingstyleofshoppingisaconsumerbuyingdecisionprocess, characterized the way consumers make purchasing decisions.Similar to the research method of cognitive, consumer decision-makingstyle researchers try tostudythissubject fromacognitiveandemotionalpointofview.Whenconsumersbuygoods,a lotof factorsmay influencetheir decisions, such as the pursuit of quality, price sensitivity, brandawareness and so on.[1] Sproles George B, Kendall Elizabeth L. AMethodologyforProfilingConsumers’Decision-MarkingStyles[J].JournalofConsumerAffairs,1986,20(2):267-279].ResearchFramework

Figure2ResearchFramework

III.RESEARCHMETHODS

TypeOfResearchThe purpose of this research is to investigate the influence ofWord-of-Mouth Communication and Consumer Motivation towards ConsumerDecision Making, specifically in futures investment. Theoretically, bothWord-of-Mouth Communications and Consumer Motivation have beenproven to have affected Consumer DecisionMaking. Based on that, thisresearch is considered to be a confirmatory type of research, instead ofexploratoryone.Althoughpractically, this research isdone in the fieldoffutures investment, which hasn’t been done a lot from previousresearches.This research tries to see the relationship between two independentvariablestowardadependentvariable.Thetwoindependentvariablesare

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Word-of-Mouth Communication and Consumer Motivation, while thedependent variable is Consumer Decision Making. Based on that, thisrelationship between the variables is considered to be a causalrelationship,insteadofdescriptiverelationship.Typesandsourcesofthedataforthisresearchareprimaryandsecondarydata. Primary data are the data collected directly from the targetedsample,whilesecondarydataarethedatacollected indirectlyfromothersources. For this research, the primary data are collected by usingquestionnaire from people who are experienced investors in futuresinvestment.Tosupportthis,secondarydataarealsocollectedfromotherresearches, journals, and text books about Word-of-MouthCommunication,ConsumerMotivation,andConsumerDecisionMaking.Population&SampleIndoingaresearch,populationandsamplearetakenindifferentway,withregard to each type of research. A population is the entire elements ofobjects that are being observed in doing a research,while a sample is asub-sectionofelementstakenfromthepopulation.Sample is takenfromthepopulationtobearepresentationofthepopulation,sotheresearchisdoneinamoreeffectiveandefficientway.For this research, the population is all types of people that are able tomakeinvestments,eithertheyareawareornotaboutfuturesinvestment.Thatmeansthepopulationnumberisinfinite.Thesampleforthisresearchisagroupofpeople thathavehad theexperienceof futures investment.Themethod for this research isStructuralEquationModelling (SEM),andtheminimumrequirementsamplesizeforthismethodis200samples.MethodsofDataCollectionIn this research, thedata for sampleofpopulationarecollectedbyusingquestionnaire. A total of 200 people as sample for this research arequestionedwith likert scalequestion. Thequestionsof thequestionnairearedevelopedaccordingtotheindicatorsofthethreevariables,whichareWord-of-Mouth Communication, Consumer Motivation, and ConsumerDecision Making. Each question allows the sample to answer with 6optionsofdegree,1beingthelowestofdegreeand6beingthehighestofdegree.

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REFFERENCES

Baker, S.,Thompson-Keith,E., Engelken, J.,&Huntley,K. (2004).MappingThe Values Driving Organic Food Choice: Germany Vs The Uk.EuropeanJournalOfMarketing,Vol.38No.8,Pp.995-1012.

Balter,D.,&Butman,J.(2005).Grapevine:TheNewArtOfWord-Of-MouthMarketing.London:PenguinGroup.

Hamzaoui,E.L.,&Zahaf,M.(2009a).OrganicFoodConsumersPurchasingPatterns And Willingness To Pay A Premium Price, DocumentPrésenté En Administrative Sciences Association Of Canada,NiagaraFalls.

Hamzaoui, E.L., & Zahaf, M. (2009b). Exploring The Decision-MakingProcess Of Canadian Organic Food Consumers:Motivations AndTrust Issues. Qualitative Market Research: An InternationalJournal,Vol.12No.4,Pp.443-459.

Hawkins,D.I.,Mothersbaugh,D.L.,&Best,R.J.(2007).ConsumerBehavior:Building Marketing Strategy (10th Ed.). Motivation, Personality,AndEmotion(Pp.364-387).Toronto:Mcgraw-HillIrwin.

Kirby,J.,&Marsden,P.(Eds)(2006),ConnectedMarketing:TheViral,BuzzAndWord-Of-MouthRevolution,Elsevier,London.

Maslow,A.H.MotivationAndPersonality (2nd Ed.). (NewYork:Harper&Row,1970).

Mcguire, W. J. (1976). Some Internal Psychological Factors InfluencingConsumerChoice.JournalOfConsumerResearch,2,302-319.

Padel, S., & Foster, C. (2005). Exploring The Gap Between Attitudes AndBehaviour: Understanding Why Consumers Buy Or Do Not BuyOrganicFood.BritishFoodJournal,Vol.107,No.8,Pp.606-625.

Rong,T.S.(1999).ConsumerBehavior.Taipei:Wu-NanBookCo.Ltd.Rusticus,S.(2006).“CreatingBrandAdvocates”,InKirby,J.,&Marsden,P.

(Eds),ConnectedMarketing: TheViral,BuzzAndWord-Of-MouthRevolution,Elsevier,London.

Schumann,J.H.,WangenheimF.V.,Stringfellow,A.,Yang,Z.,Blazevic,V.,Praxmarer.S.,Shainesh,G.Komor,M.,Shannon,R.M.,&Jimenez,F.R., (2010).Cross-CulturalDifferences InTheEffectOfReceivedWord-OfMouth Referral In Relational Service Exchange. JournalOfInternationalMarketing,18(3),62-80.

Silverman, G. (2001), The Secrets OfWord-Of-MouthMarketing: How ToTrigger Exponential Sales Through Runaway Word-Of-Mouth,AmacomBooks,NewYork,Ny.

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Sproles, G. B., & Kendall, E. L. (1986). Amethodology For ProfilingConsumer’s Decision-Making Styles. The Journal Of ConsumerAffairs,20,267-279.

Sproles, G. B. (1985). From Perfectionism To Fadism: MeasuringConsumer’s Decision-Making Styles. Proceedings, AmericanCouncilOnConsumerInterests,79-85.

Wilkinson,H.E.,Orth,Cd.AndBenfari,R.C.(1986).MotivationTheories:AnIntegrated Operational Model. S.A.M Advanced ManagementJournal,51(4),24-31.

Zanoli,R.AndNaspetti,S. (2002),ConsumerMotivations InThePurchaseOf Organic Food: A Means-End Approach. British Food Journal,Vol.104No.8,Pp.643-653.

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THEINFLUENCEOFNATURALHEDGEANDEXCHANGERATE

FLUCTUATIONSONLEVERAGEANDCASHFLOWRATIO

(StudyatPTKeretaApiIndonesia(Persero))

ARISULISTYASIH,StudentID.120820150047,arisulistyasih@gmail.com

DIAHPRAMITAARIYANTI,StudentID.120820150057,deepramita25@gmail.com

MasterofManagementProgram,FacultyEconomicsandBusiness,UniversitasPadjadjaran

ResearchBackground

Corporatetransactionswithinternationalcompaniesarenotonlymadeincash, sodebts incurred in the formof foreigncurrency,whichmakes thecompany suffer losses aswell as gains. Problems encountered bycompanies engaging in international trade transactions are morecomplicated than when the company only deals with domestic market.Currencyofeachcountryisassessedfromtheperspectiveofthecurrencyofothercountriesbyusingtheconceptofexchangerate.Rupiahhasbeenweakening againstUSdollar lately. Theweakeningof rupiahhas positiveand negative effects. The positive effects will benefit exporters whoreceivemorerevenuesasaresultofUSD-IDRexchangerate.However,thenegativeeffectswillbefeltby importerswhohavetopaythe increase intheexchangerate.Inadditiontoimporters,thedepreciationofrupiahalsomakes the Government concerned, given Indonesia's foreign debts aredenominatedinUSdollar.Basically,therearenocompaniesthatarenotrelatedtotheinternationalmarketandthattherearerisksduetoforeignexchangefluctuations.Eachcompanyisknownbymeasuringriskexposuresexperiencedbyacompany.Exposure is an object that is exposed to the risk andimpact on thecompany'sperformancewhentheriskispredictedtooccur.Oneof thecompany's lossescontained in the financial statements showsthatthecompanygainsgreaterburdenduetoforeignexchangeexposure.Theimpactofalossonforeigncurrencyexchangeratescanbeseenfromthedeclineincorporateprofits.

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To overcome the risk of exchange rate, the Ministry of State OwnedEnterprises(SOEs)suggestshedging.Underitsterms,SOEscandohedgingby first making hedging policies andStandard Operating Procedure (SOP)for implementation. The use of leverage and hedging could affect theliquidityofSOEs.

LiteratureReviewandResearchFramework

1.NaturalHedge

Etymologically,hedgingderivedfromEnglishword"hedge”.Theeconomicsterminologydictionarydefineshedgeasanactiontoreducetheuncertaintyregarding the movement of prices in the future that come from"commodity" (commudity) "securities" (financial sucurity) and "foreigncurrency"(foreigncurrency).Shapiro(1999:144)saidthathedgingaparticularcurrencyexposuremeansestabilishing an offseting currency position such that whatever is lost orgainedontheoriginalcurrencyexposureisexactlyoffsetbycorrespondingforeignexchangegainonlossonthecurrencyhedge.AccordingtoMadura (2000:275),hedging isanactiontakentoprotectacompany from exposure against exchange rates. Exposure to exchangerate fluctuations is the extent towhich a company may be affected byexchangeratefluctuations.According to Miksalmina (2015: vol 4), hedging the exchange rate is anactivityundertakentomitigaterisksortoprotectthepositionofthevalueof an underlying assetor liability against the risk of interest ratefluctuationsand/or thevalueof thecurrency inthe future.Thereare twomethods that can be used by the government to manage the risk offluctuations in exchange rates of foreign currencies, namely naturalhedgingandfinancialhedging.Naturalhedgingcanbeappliedwithouttheapplication of complex financial engineering, while financial hedgingrequirescomplexfinancialapplications.Hedgingpoliciesarecontrolledandmeettheprincipleofprudentwhichwillbeabletocontrol theamountofoutstandingforeigndebt.Hedgingtechniqueconsistsof:a. NaturalHedgeishedgingnormalinternationalbusinesstransactions,

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1. Ensuringthatselling&buyingcontractsareinthesamecurrency2. Ensuringthatpurchasecontracts(A/P)areinsoftcurrency3. Leadingdebtrepaymentinhardcurrency4. Leadingcollectionofaccountsreceivableinsoftcurrency5. Laggingpayablesinhardcurrency

b. Money Market Hedge is hedging through international financialtransactions by calculating the present value of debts or receivablesandtakingintoaccountthedevelopmentoftrendofchangeinFR&SRor appreciation/depreciation of the currency used in internationalbusinesstransactions(A/PandA/R).

c. ForwardMarket Hedge is hedging through derivative transactions inforeignexchangecurrencybydoingForwardContracttoprotectdebtsandreceivables.

d. Future Market Hedge is hedging through derivative transactions inforeign exchange currency or International Monetary Market (IMM)on Chicago Mercantile Exchange (CME) by doing Futures Contractwhich is donewith standard volume (lot) and at a certain period oftime. These transactions are usually carried out by employers orarbitrageurs (forex traders) to protect forward position againstpossibleforeignexchangeratefluctuations.

e. Option Market Hedgs is hedging through derivative transactions inforexmarketbydoingcalloptionorputoptioninaccordancewiththestandard volume (lot),at a specific time period and based on thecontract price, called Strike or Exercise Price and by payingfees/premium. This transaction is not mandatory because it can berealizedwhen it isprofitableornot realizedwhenhurtby theriskofmissing fee/premium payment Call Option Hedge protects A/P(Account Payable) Put OptionHedge protects A/R (AccountReceivable).

f. SwapHedge ishedgingthrough international financial transactions inthe formof Currency Swap or Interest Rate Swapwhich is based ontheprincipleofcomparativeadvantagetheoryaimedatreducingCostInterestontheloansorbondsissuedbycompanies.

g. Range Agreement is one way to avoid failures/cancellation ofinternational business as a result of fluctuations in foreign currencyexchangeratesthatareveryhigh.Coleman(2009) inSugianto(2014)revealed thatnaturalhedge strategyoccurswhena company investsintwoassetsordifferentbusinessunits,wherethecashflowsofbothinvestmentsnegateparticularrisk.Naturalhedgestrategycanbeseen

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from Non-Interest Margin (synonymous). Therefore, the higher acompany’s synonymous, the higher the company's stockreturn.Natural hedge strategy is measuredusing synonymous obtained byapplyingthefollowingformula(Sugianto,2014):NII-NIETA

Remark:NII:non-interestincomeNIE:non-interestexpenseTA:company’stotalassetsBjornDohring (2008)mentionedthatNaturalhedge isanalternativewayof reducing exchange rateexposure. Natural hedge contains foreigncurrencydebt, diversification across currencyzones, operationalmatchingof revenues and expenditures. Foreign currency loans arefunctionalsubstitutes to forwards and futures. However, loans can easily coverlongermaturities thanderivatives (e.g. a firmwith access to internationalcapital markets may hedgefuture revenues in US dollar by issuing a USdollar bond).More generally, exchange rateexposure can be reduced bymatching foreign-currency revenues with foreign-currencyexpenditures.Operational hedges, as non-financial natural hedges, involvegeographicaldiversification of production, sourcing and/or sales. Sinceoperational hedges are less flexiblethan financial hedges, and involvehighersunkcosts,theyaretypicallyusedtoreducelongertermexposuretoeconomic risk. The matching of foreigncurrency assets with foreigncurrency liabilities also offers protection against translation risk. Dikdik(2013,Vol:2)saidthatnaturalhedgecanbeviewedasahedgethatcomesfromdailyactivitiesoroperations.Naturalhedgemethodisbydiversifyingthebusinesssegments.

2.ExchangeRate

According toMadura (2008:154),exchange ratesystemscanbeclassifiedaccording to the degree by which exchange rates are controlled by thegovernment.Exchangeratesystemsnormallyfall intooneofthefollowingcategories:a. Fixedexchangeratesystem

In a fixed exchange rate system, exchange rates are either heldconstantorallowedtofluctuateonlywithinverynarrowboundaries.

b. Floatingexchangeratesystem

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In a freely floating exchange rate system, exchange rate values aredetermined by market forces without intervention by government.Where as a fixed exchange rate system allows no flexibility forexchange rate movements, a freely floating exchange rate systemallowscompleteflexibility.Afreelyfloatingexchangerateadjustsonacontinualbasis inresponsetodemandandsupplyconditionsforthatcurrency.

c. ManagedfloatexchangeratesystemThe exchange rate system that exist today for some currencies liessomewherebetweenfixedandfreelyfloating. Itresemblesthefreelyfloatingsysteminthatexchangeratesareallowedtofluctuateondailybasisandtherearenoofficialboundaries.Itissimilartothefixedratesystem in that governments can and sometimes do intervene toprevent their currencies from moving too far in a certain direction.Thistypeofsystemisknownasmanagedfloatordirtyfloat.

d. PeggedexchangeratesystemSome countries use a pegged exchange rate arrangement, in whichtheirhomecurrency’svalueispeggedtoaforeigncurrencyortosomeunitsofaccount.Whilethehomecurrency’svalueisfixedintermsofthe foreign currency towhich it ispegged, itmoves in linewith thatcurrencyagainstothercurrencies.

3.LeverageRatio

Leverageratioorsolvencyratiouses thesizeof the long-termanalysis.Acompanyisnotsolvable,ifithasatotaldebtgreaterthanthetotalassets.Solvencyanalysis involves several key elements. Analysis of capitalstructure is one of them. The capital structure of a company refers tofunding.Anotherkeyelementofsolvencyanalysisisincome(earnings)orprofitability (earningspower) thatshowstheability togeneratecashfromoperations.Steadyflowofincomeisanimportantmeasureofacompany’sability to borrow when cash shortfalls. Leverage ratio describes thecompany'sability to meet its long-term liabilities or obligations if thecompanyis in liquidation. This ratio ismeant to measure how far thecompany'sassetsarefinancedbydebtratio.Thisratioistheratiobetweencurrentliabilitiesandlongtermliabilitiesandthetotalassets.

TotalDebttoAssetRatio=TotalDebtx100%TotalAsset

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4.CashFlow

Cashflow,accordingtoKashmirandJafar(2003,145)notesthatcashflowinthecompanyinagivenperiod.Cashflowrepresentshowmuchmoneyin the company and the types of income and expenditure. Cash flowinformation is useful in assessing the company's ability to generate cashand cashequivalents andenablesusers todevelopmodels to assess andcompare the present value of the future cash flows of the variouscompanies ( IAI, 2009). Cash receipts and payments in the statement ofcashflowsareclassifiedintocashflowsfromoperatingactivities,cashflowsfrominvestingactivitiesandcashflowsfromfinancingactivities.Differentiation components of cash flow is very important for eachcomponent is considered to have an influence in its decision making.Operatingactivitiesaretheprincipalrevenueactivityofthecompany.Totalcashflowfromoperatingactivitiesisanindicatorthatdetermineswhethertheoperatingcompanycangeneratesufficientcash flowsto repay loans,maintaintheoperatingcapabilityofthecompany,paydividendsandmakenewinvestmentswithoutrecoursetoexternalsourcesoffinancing.Cash flows from operating activities are primarily derived from theprincipalrevenue-producingactivitiesofthecompany.Therefore,thecashflowsaregenerallyderivedfromtransactionsandothereventsthataffectthe determination of net profit or loss. Investing activities are theacquisition and disposal of long-term assets and other investmentsnotincludedincashequivalents.Cashflowsarisingfrominvestingactivitiesarenecessary to separate disclosure because the cash flows reflect the cashreceipts and expenditures withrespect to the resources intended togenerate income and future cash flows. Financing activities are activitiesthat result in changes in the amount and composition of a company’scapitalandloan.Cashflowsarisingfromfinancingactivitiesarenecessarytoseparatedisclosureasusefulinpredictingclaimsonfuturecashflowsbythesuppliersofcapital.ResearchFramework

LeverageRatio(Y1)

CashFlowRatio(Y2)

NaturalHedge(X1)

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Researchmethods

This studywill explore natural hedge, leverage and cash flow ratio of PTKeretaApi Indonesia (Persero). The data used in this analysis aremonthlydata from 2014 to2016. This paper uses quantitative researchmethod, to answer questions aboutrelationship among measuredvariables. Quantitative research “is used to answer questionsaboutrelationships among measured variables with the purpose of explaining,predicting, andcontrolling phenomena” (Leedy & Ormrod, 2001). Theindependentvariablesarenaturalhedge(X1)andexchangerate(X2).Thedependent variables are leverage (Y 1) and cash flowratio (Y 2). Therelationshipsamongnaturalhedge,exchangerate,leverageandcashflowratio are estimated using regression technique. To determine if thevariablesarerelatedornot,correlationdesignisusedtoillustratewhetherthetwovariablesvarydirectly(positivecorrelation)or inversely(negativecorrelation).ResearchPurpose,LimitationandOriginality

Thepurposeofthispaper:a. To examine the impact of exchange ratemovements on the present

valueofuncertainfuturecashflow.b. Toexaminetheimpactofexchangeratemovementsonthecompany’s

abilitytopaydebtscompany’s.c. Toexamine the impact of natural hedgeon the company’s ability to

paydebts.d. To examine the impact of natural hedge on the present value of

uncertainfuturecashflow.

ExchangeRateFluctuation(X2)

LeverageRatio(Y1)

CashFlowRatio(Y2)

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This paper is the only study that is done at PT K ereta Api Indonesia(Persero) in Bandung City, Indonesia that measures the the influence ofnatural hedge and exchange rate fluctuationson leverage and cash flowratioatPTKeretaApiIndonesia.

References

Dohring, Bjorn. (2008). Hedging and Invoicing Strategies to ReduceExchange Rate Exposure: A Euro – Are Perspective. EuropeanCommission.

Dwiparandi, Dikdik, &IsrochmaniMurtaqi. (2013). Comparison of NaturalHedges fromDiversification and Derivative Instruments againstCommodityPriceRisk:ACase

Study of PT Aneka Tambang, Tbk. Jakarta.The Indonesian Journal ofBusinessAdministration.

Madura,Jeff.(2008).InternationalFinancialManagement(9thed.).UnitedStates:ThomsonHigherEducation.

Mansur, M.Khafidz. (2015). The Effect of Liquidity and Solvency onProfitability (Case Study at Telecommunication SubsectorCompanies Listed on the Jakarta Islamic Index (JII) fo the Period2010-2014].Semarang.

Miksalmina. (2015). Hedging Strategy in the Management of IndonesianGovernment Foreign Debt against the Risk of Exchange RateFluctuationsinUSDollar.Indonesia:QEJournal4(1).

Sugiyono.(2013).ManagementResearchMethods.Bandung:Alfabeta.Yocelyn, Alycia, & Yulius Jogi Setiawan. (2012). Analysis of Effect of

Changes in Cash Flow and Accounting Profit on Stock Return ofCompanies with Large Capital. Jurnal Akuntansi DanKeuangan[Journal of Accounting and Finance],14,(2), November2012:81-90.

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THEEFFECTOFWORKLIFEBALANCEANDJOBSATISFACTIONON

EMPLOYEETURNOVERINTENTIONATPTISSINDONESIA

MariyatiSyaniNursukma,StudentID.120820150009,mariyati.syani@gmail.com

IntanKrisnawanti,StudentID.120820150039,intankrisnawanti17@gmail.com

MasterofManagementProgram,FacultyofEconomicsandBusiness,UniversitasPadjadjaran

I.Introduction

Today’s challenge that is faced by most of companies in marketcompetition is how tomanage intellectual capital.Ulrich (1997:126) saysthatthekeysuccessofcompanies is inhowfartheycanattract,develop,and retain talentedemployees.Managingand retaining todayemployeesare very different frommanaging employees in the 1960s or 1970s. Thetypical employees in the 1960s or 1970s showed up at a specifiedworkplacefromMondaytoFridayandworkedfor8or9hours.Buttoday’sworkplaces offer opportunities for workers to create and structure theirownroles.The impactof this situation is thatemployeesare increasinglycomplaining because the line between work and non-work time hasbecome blurred, creating personal conflicts and stress (Robbins& Judge,2015:53). Robbins & Judge (2013:566) say that on average most peopleprefer an organization that providesmore support forwork-life balance.One studyeven found thatpotential employees, particularlywomen, aremore attracted to organizations that have a reputation for supportingemployeework-lifebalance.Recent studies by D.S Ones and S. Dilchert (Robbins & Judge, 2015:53)show that 56% of men and women say that work-life balance is theirdefinitionofcareersuccess,morethanmoney,recognitionandautonomy.Work-life balance occurs when people are able to minimize conflictsbetween their work and non-work demands (McShane and Von Glinow,2015:20).Ontheotherhand,Schermerhorn,Hunt&Osborn(2005:39)saysthat work-life balance makes sure that the demands of the job are areasonablefitwithone’spersonallifeandnon-workresponsibilities.

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Robbins and Judge (2013:22) also say that “most college and universitystudents say attaining a balance between personal life and work is aprimarycareergoal;theywant“alife”aswellasajob.Organizationsthatdon’t help their people achievework-life balancewill find it increasinglydifficulttoattractandretainthemostcapableandmotivatedemployees.”Fisher-McAuley, Stanton, Jolton, and Gavin (2003:2) examined whetheremployees’beliefsabouthavingabalancebetweenworkandpersonallifeare related to feelings of stress on the job, satisfaction with one’s job,reasonswhyonemightquithis/her job,andplanstofollowthroughwithquitting. The results show that not having a balance between work andpersonal life is a potential source of work-related stress, this source ofstressisrelatedtoanumberofundesirableoutcomes,andrelatestoafewreasonswhyemployeesmaychoosetoquittheirjobs.In order to attract and retain talented employees, increasing work-lifebalance becomes something important. Parkes & Langford research(2008:267) shows that out of 28organizational climate factors,work–lifebalance is least related to employee engagement and intention to staywithanorganization.Malik,Saleem,andAhmad(2010:112) intheirstudyfoundthatwork-lifebalanceaffectedjobsatisfactionindevelopingcountrylikePakistan,andhowjobsatisfactionaffectedtheburnoutlevelofDoctor.Besides work-life balance, attracting and retaining talented employees,companies also have to increase employees’ job satisfaction level. Jobsatisfaction is how people feel about their work and the work setting(Schermerhorn, Hunt, and Osborn, 2005:11). Locke (Luthans, 2008: 105)says that job satisfaction involves cognitive, affective, and evaluativereactions or attitudes; and states that it is “a pleasurable or positiveemotional state resulting from the appraisal of one’s job or jobexperience.”So, jobsatisfaction isapositive feelingabouta job resultingfromanevaluationofitscharacteristics(RobbinsandJudge,2015:105).Through theyears, five jobdimensionshavebeen identified to representthemost important characteristic of a job about which employees haveaffective responded. They are the work itself, pay, promotionopportunities, supervision, and coworkers (P.C. Smith, L.M. Kendall, andC.L.Hulin,inLuthans,2008:105).Kardam and Rangnekar (2012:20) research reveals that there is nosignificantdifference indifferentexperiencegroupsasto jobsatisfaction.

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But to understand the basic thing that is there any dimension (Pay,Promotion, Supervision, Reward, Benefits, Operating procedure, Co-worker, Work-itself, Communication) of job satisfaction create anydifference in existing experience groups. Further study reveals that pay(0.007), operating procedure (0.017), the work itself (0.50) andcommunication (0.045) have significant differences of experience in thecontextofjobsatisfaction.Sang, Ison&Dainty research (2008:288) found that “between 20 and 40percent of respondents are dissatisfied with their rate of pay, practicemanagement,promotionprospects,workinghoursandopportunitytousetheirabilities.Additionallythemajorityofrespondentsreportsomework-life balance difficulties and approximately one-third were consideringleavingtheircurrentemployer.”Research has uncovered a moderate inverse relationship betweensatisfaction and turnover. High job satisfaction will not, in and of itself,keepturnoverlow,butitdoesseemtohelp.Ontheotherhand,ifthereisconsiderable job dissatisfaction, there is likely to be high turnover.Obviously, other variables enter into an employee’s decision to quitbesides job satisfaction.Forexample,age, tenure inanorganization,andcommitmenttotheorganizationmayplayarole.Somepeoplecannotseethemselves working anywhere else, so they remain regardless howdissatisfiedtheyfeel(Luthans,2008).J.Scrumin2006conductedsurveytoahundredofworkplaces,andmorethan200,000respondents.Thesurveyshowedthatthesocialrelationshipsamong co-workers and supervisors were strongly related to overall jobsatisfaction. Positive social relationshipswere also associatedwith lowerstressatworkandlowerintentionstoquit(Robbins&Judge,2013:4).The satisfaction-turnover relationship is also affected by alternative jobprospects. If an employee is presentedwith an unsolicited job offer, jobdissatisfactionislesspredictiveofturnoverbecausetheemployeeismorelikely leaving in response to “pull” (the lure of the other object) than“push”(theunattractivenessofthecurrentjob).Jobdissatisfactionismorelikely to translate into turnover when employment opportunities areplentiful because employees perceive it is easy to move. Also, whenemployeeshavehigh“humancapital” (highereducation,highability), job

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dissatisfaction ismore likely to translate into turnoverbecausetheyhaveorperceivemanyavailablealternatives(Lee,Gerhart,Weller,andTrevorinRobbins&Judge,2015:112).On anoverall basis, however, it is accurate to say that job satisfaction isimportant in employee turnover. Although absolutely no turnover is notnecessarily beneficial to organization, a low turnover rate is usuallydesirablebecauseof theconsiderable trainingcostand thedrawbacksofinexperience, plus the loss of the tacit knowledge that those who takeleavethem(Luthans,2008).Rahman&Nas (2013:568) say that turnover isanemployee’spermanentmovementbeyondtheboundaryoftheorganization.AccordingtoCarmeliand Weisberg (Rahman & Nas (2013:568), the term turnover intentionsrefertothreeparticularelementsinthewithdrawalcognitionprocess(i.e.thoughtsofquittingthejob,theintentiontosearchforadifferentjob,andthen intention to quit). Abbasi and Hollman (Wells & Peachy, 2001:26)warn that it is“thesmartestandmost talentedemployees [who]are themost mobile and the ones who are disproportionately more likely toleave.”BasedonsurveyfromCompData’s2014editionoftheirannualBenchmarkPro Survey (Ann Bares, 2015) which features data submitted by nearly30,000organizations,thelatestturnoverratesbyindustry(bothvoluntaryandtotalturnoverrates)areshownintable1.

Table1.Turnoverratesbyindustry

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Comparetootherindustry,theturnoverrateinservicesindustryisplacedin the last third which is 12.5%. But, in Indonesia, one of outsourcingcompanies as an all in one services company that delivers IFS Service,includingFacilityServices,SecurityService,OfficeSupports,andProperty&Maintenance (such asMechanical & Electrical, ParkingManagement andRemote Site Catering Services) – called ISS Indonesia - has the highestturnover rate compare with that in the industry, which is around 30% -40%.Citing the interviewwithPresident director andCEOof PT ISS Indonesia,Elisa Lumbantoruan (Prahadi, 2016) in SWA Magazine, he said “ISSIndonesiacomparewithanothercompany inthesame industryhasmoreadvantages, such as minimum salary that follows the UMR or UMKstandard and the provision of medical insurance (BPJS Kesehatan) andpension insurance (BPJS Ketenagakerjaan). After working as a contractemployee for three years, the employee automatically becomes apermanent employee in ISS Indonesia. In addition, all employeeworkplaces are nearer to their home. The company believes that even ifwe faced an issue like high turnover,we still have an advantage that noother companies have, and we still believe that our company has nodisadvantages”.Theopinionisconfirmedbythedatain2016,inwhichISSIndonesiahadmorethan60,000employeesandcreatedpartnershipwith3,500 big and small clients. Everymonth, ISS Indonesia interviews 5,000until6,000applicants,butonly1,500until1,600becameemployeesinISSIndonesia(Prahadi,2016).In running the business, ISS Indonesia is commited to implementing thevalue of ‘The Power of Human Touch’ through people development and

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empowermentandaligning itwith ISS Indonesia’smissionandalsovalueproposition, namely “Service performance, facilitating customer purposethroughpeople empowerment.” ISS presents in order to help it businesspartnersto improvetheirperformancethroughempowering ISSstaffandsustainable training.Employeesworkby followingthestandardoperatingprocedures (SOP) and get evaluated by their supervisors, in order tominimizedefect.ISS Indonesia also implements open policy system, where all employeescan give critics to top management openly, and all critics get positiveresponses. On other hand, the company also implements fairness andtransparency system to encourage strong leadership, and all policies anddecisions can be justified. One of company initiatives in implementingfairness and transparency system is developing HR committee. HRcommittee roles are in employee performance appraisal, promotion,transfer, and termination. HR committee comprises of some employeesupervisors andadhoc committee. So, all decisions regardingemployeeswillbemoretransparentandcanbejustifiedbecausethedecisionmakingisbasedonsomeconsideration.Basedontheexplanationofthosephenomenon,theproblemsthatwritersfindarehowimplementationofwork-lifebalanceandjobsatisfactioncanaffect employee turnover in ISS Indonesia? The purpose of this researchproposalistoexploretheviewsofPTISSIndonesiaemployeesabouthowwork-lifebalanceandjobsatisfactioncanaffecttheirintentiontoleavetheorganization (turnover intention). Based on the description above, theauthors are interested in conducting research on work-life balance, jobsatisfaction,andturnoverintentionunderthetitle“Theeffectofwork-lifebalance and job satisfaction on employee turnover intention at PT ISSIndonesia”.II.LiteratureReviewandResearchFramework

Work-lifeBalanceWork-lifebalanceisabroadconcept,definedindifferentwaysbydifferentresearchersusingdiversedimensions.Theoriginsofresearchonwork-lifebalancecanbeessentiallytracedbacktostudiesofwomenhavingmultipleroles.Worklifebalancewasinitiallytermedaswork,familyconflict.Kahnet al. (Poulose & Sudarsan, 2014:2) defined it as “a form of inter role

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conflict in which the role pressures from work and family domains aremutuallyincompatibleinsomerespect”.Duxbury (Poulose&Sudarsan,2014:3)haddefinedwork-lifebalanceasacombination of role overload, work to family interference and family towork interference. Role overload refers to having too much to do in aspecifiedtimeleadingtofeelingsofstress,fatigueandtimecrunch.Workto family interference occurs when the demands and responsibilities ofwork rendering fulfillment of family demands and responsibilities ofindividuals difficult. Family to work interference occurs when familydemands and responsibilities make it more difficult for an individual tofulfilworkdemandsandresponsibilities.Grzywacz and Carlson (Poulose & Sudarsan, 2014:3) define work-lifebalance as “accomplishment of role-related expectations that arenegotiated and shared between an individual and his/her role-relatedpartnersintheworkandfamilydomains”.Workinterferingwithpersonallife(WIPL),Personallifeinterferencewithwork(PLIW)andWork/Personallife enhancement (WPLE) [FWC – Family Work Conflict], work-to-familyenrichment[WFE],andfamily-to-workenrichment[FWE]).According to Fisher (Poulose & Sudarsan, 2014:4), work-life balancecomprised of four parts namely, (i) time, i.e., a comparison betweenamount of time spend at work and time engaged in other activities, (ii)individual’s behaviour at work and in personal life, (iii) Strain being asource of inter role conflict and (iv) Energy being a limited resource andrelevantforemployeestoaccomplishworkand/ornon-workrelatedgoals.In addition, a scale to measure three dimensions of work life balance,namely, Work interference with personal life (WIPL), Personal lifeinterference with work (PLIW) and Work/Personal life enhancement(WPLE)wasalsoincluded.According to Hayman (2005),WLB refers to the sum total of the scoresattained by the working professional on three dimensions, that is, workintrusion with personal life, personal life interfering with work andwork/personal life improvement as measured by WLB scale. In simpleterms,work–lifebalanceisdefinedas“theextenttowhichindividualsareequallyengagedinandequallysatisfiedwithworkandfamilyroles.”

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By reviewing themeasurement scales, factors andoutcomes ofwork-lifebalanceintheinternationalandnationallevelstudies,Poulose&Sudarsan(2014,11)havemadeaprimarydiscoveryonfactorsofwork-lifebalanceinthe personal, organizational and societal level of an individual and thepossibleoutcomes,asthetableshows(seeTable2&3).

Table2.FactorsofWLB

Individual

FactorsOrganizational

FactorsSocietalFactors OtherFactors

1. Personality2. Wellbeing3. Emotional

intelligence

1. Workarrangements

2. Work-lifebalancepractices&policies

3. Organizationsupport

4. Superiorsupport

5. Colleaguesupport

6. Jobstress7. Roleconflict8. Roleambiguity9. Roleoverload10. Technology

1. Childcarearrangements

2. Spousesupport

3. Familysupport4. Socialsupport5. Personal&

familydemands

6. Dependentcareissues

7. Familyquarrel

1. Age2. Gender3. Marital

status4. Parental

status5. Experience6. Employee

level7. Jobtype8. Income9. Typeof

family

Table3.OutcomesofWLB

Workrelatedoutcomes NonworkrelatedOutcomes1. Job/Worksatisfaction2. Careersatisfaction3. Organizationalcommitment4. Employeeturnover5. Absenteeism6. Retentionofemployees7. Jobperformance

1. Maritalsatisfaction2. Familysatisfaction3. Lifesatisfaction4. Leisuresatisfaction5. Burnout6. Healthoutcomes7. Familyperformance

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JobSatisfactionIn 1978, Dehlinger& Perlman (Spector, 1985:693) found that only a fewothers and called human service employees “industry’s forgotten staff”concerned in their job satisfaction. During the late 1970s, interest inhuman service workers’ job satisfaction began to increase with researchconcerned with comparisons to industrial workers and causes ofsatisfaction. In human services, there is evidence that satisfaction isassociatedwithemployeeperformanceandclients'outcomes.Locke(Luthans,2008:105)definesjobsatisfactionasaninvolvingcognitive,affective, and evaluative reactions or attitudes and states it as “apleasurable or positive emotional state resulting from the appraisal ofone’sjoborjobexperience.”Locke(Spector,1985:695)distinguishedthreemajor approaches to the cause of job attitudes. They can derive fromdiscrepanciesbetweenwhat the joboffers andwhat thepersonexpects,fromthedegreetowhich jobsfulfill individualneeds,or fromthedegreetowhichindividualvalues(desiresorwants)arefulfilled.Robbins & Judge (2013:74) define job satisfaction as a positive feelingaboutajob,resultingfromevaluationofitscharacteristics.Apersonwithahighleveljobsatisfactionholdspositivefeelingsabouthisorherjob,whileapersonwithalowlevelholdsnegativefeelings.McShaneandVonGlinow(2015:103)saythatjobsatisfactionisaperson’sevaluationofhisorherjobandworkcontext.Itisanappraisalofperceivedjobcharacteristics,workenvironment,andemotionalexperiencesatwork.In1989,TheWyattCompany’snationalWorkAmericastudyidentified12dimensionsofsatisfaction,namelyworkorganization,workingconditions,communications, job performance and performance review, co-workers,supervision, company management, pay, benefits, career developmentandtraining,jobcontentandsatisfaction,andcompanyimageandchange(Robbins&Judge,2013:79).Through theyears, five jobdimensionshavebeen identified to representthemostimportantcharacteristicofajobaboutwhichemployeeshaveanafectiveresponse(Luthans,2008:105).Theseare:1. Thework itself. The extent to which the job provides the individual

with interesting task, opportunities for learning and the chance toacceptresponsibility.

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2. Pay. The amount of financial remuneration that is received and thedegree towhich this is viewedasequitable vis-à-vis thatof offers intheorganization.

3. Promotion opportunities. The chances for advancement in theorganization.

4. Supervision. The abilities of the supervisor to provide technicalassistanceandbehavioralsupport.

5. Coworkers. The degree to which fellow workers are technicallyproficientandsociallysupportive.

EmployeeTurnoverIntentionIn many service industries, turnover rates and costs are frequently veryhigh. In theretail industry, theaverageof turnover insomecompanies ismorethan100%ayear forpart-timeworkersandaround75%ayear forfull-timeworkers.TheU.S.supermarkets,fast-foodrestaurants,andotherretailserviceindustryfirmsspendbillionsofdollarseachyeartodealwithworkerturnover(Mathis&Jackson,2011:160).Turnoveristheprocessinwhichemployeesleaveanorganizationandhaveto be replaced (Mathis & Jackson, 2010:159). The Cambridge Dictionary(Assiedu-Apiah, Mehmood, and Bamfo, 2015: 388) defines turnover inrelation toHRas, the rate atwhichemployees leavea companyandarereplacedbynewemployees.On theother hand, Bigliardi et al. (Assiedu-Apiah,Mehmood,andBamfo,2015:388)define intentionto leaveastheindividual’s perceived likelihood that they will be staying or leaving theemployeeorganization.Tat & Meyer (McNall, Masuda, and Nicklin, 2009:65) defined turnoverintention as a conscious and deliberate willingness to leave theorganization. Rahman and Nas (2013:568) define turnover as anemployee’s permanent movement beyond the boundary of theorganization. According to Carmeli and Weisberg (Rahman and Nas,2013:568),thetermturnoverintentionsrefertothreeparticularelementsin thewithdrawal cognitionprocess (i.e. thoughtsofquitting the job, theintentiontosearchforadifferentjob,andthenintentiontoquit).Turnoverofcriticalemployeeisconsidereddetrimentaltotheorganizationintermsofreplacementcostandworkdisruption.

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Addae et al. and Bedeian et al. (Rahman and Nas, 2013:568) said thatthoughthere isadifferencebetweenintentto leaveandactualturnover,researchers recognize this intent has an immediate causal effect onturnover decision. An employee’s decision to quit an organization is anundesirable outcome for the organization and the employee as it affectsbothoftheminmanyways.Thatiswhyitisconsideredveryimportanttounderstand itspredictors inorder tominimize itsnegative impacton theorganizations’performance(Lowetal.,inRahmanandNas,2013:568).SteersandMowday (LeeandMowday,1987:722)proposedthe followingsequenceofvariables that leads toanemployee’sstayingwithor leavinganorganization,thereare:1. Job expectations, conceptualized as met expectations and values

influenceanindividual’saffectiveresponsetoajob;2. Affective responses affect desire and intention to stayor leave,with

thechoicedependingonavarietyofnon-workinfluenceslikespouse’sjobandtimeleftforfamily;and

3. Anintentiontoleaveanorganizationleadstoactualleaving.Steers and Mowday discussed several affective responses to job andorganization, including job satisfaction, job involvement, andorganizationalcommitment.Theyconsideredthemostdirectinfluencesonaffectiveresponsetobetheinteractionsof(1)jobexpectationsandvalues;(2) organizational characteristics and experiences, conceptualized as anindividual’s“experiencedorganizationalreality”;and(3)jobperformance.Watrous et al. (Wells & Peachey, 2011:26) categorized turnover asvoluntaryor involuntary, aswell as functional or dysfunctional, andeachtypeofturnovercanhavevaryingeffectsontheorganization.1. Involuntary Turnover: Employees are terminated for poor

performanceorworkruleviolations.Involuntaryturnoveristriggeredat all levels by employers terminatingworkers due to organizationalpoliciesandworkruleviolations,excessiveabsenteeism,performancestandardsthatarenotmetbyemployees,andotherissues.

2. Voluntary Turnover: Employees leave by choice. Voluntary turnovertoocanbecausedbymanyfactors,someofwhicharenotemployercontrolled. Common voluntary turnover causes include jobdissatisfaction, pay and benefit levels, supervision, geography, andpersonal/family reasons. Career opportunities in other firms, whenemployees receive unsolicited contacts, may lead to turnover for

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individuals, especially those in highly specialized jobs such as IT.Voluntary turnover may increase with the size of the organization,most likely because larger firms are less effective in preventingturnoverandhavemoreemployeeswhoareinclinedtomove.

3. FunctionalTurnover:Lower-performingordisruptiveemployeesleave.4. DysfunctionalTurnover:Key individualsandhighperformers leaveat

criticaltimes.5. Uncontrollable Turnover: Employees leave for reasons outside the

controloftheemployer6. Controllable Turnover: Employees leave for reasons that could be

influencedbytheemployerSociety for Human ResourceManagement and AoN Consulting (RahmanandNas, 2013:568) carried out a surveywhich discovered the top threereasons employees voluntarily leave a company. They are: (1)Opportunities for training and career development; (2) A bettercompensationandbenefitspackage;and(3)Poormanagement.Similarly,Joo (Rahman andNas, 2013:568) contends that turnover is caused if: (1)employeesaredissatisfiedwiththeorganization-widepolicies;whentheyhave low levels of organizational commitment; and (3) organizationallearningcultureandLMX(Leader–memberexchange)quality.

ResearchFramework

Figure1.ResearchFramework

EmployeeTurnover

Intention(Y1)

1. Intentiontoleave2. Intentiontosearch3. Plantoquit(Carmeli andWeisberg inRahmanandNas,2013)

Work-lifeBalance(X1)

1. Workinterferencewithpersonallife(WIPL)2. Personallifeinterferencewithwork(PLIW)3. Work/Personallifeenhancement(WPLE)(Hayman,2005)

JobSatisfaction(X2)

1. Theworkitself2. Pay3. Promotion4. Supervision5. Co-workers(LockeinLuthans,2008)

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III.ResearchMethodology

ResearchDesign

This research uses mixed methods design, with explanatory sequentialmixed methods model. Mixed methods design combines qualitativeresearch and quantitative research, as well as the data collected in thisresearch (Creswell, 2014:45). In explanatory sequential mixed methodsmodel, the researcher uses the quantitative research, analyzes usingquantitative research, then sharpens the analysis result using qualitativemethods(Creswell,2014:46).OperationalizationofVariables

Thevariablesthatareusedinthisstudyarework-lifebalance(X1)andjobsatisfaction (X2) as independent variables, and employee turnoverintention (Y) as dependent variable. As the parameters investigated aredescribedinthetablebelow.

Table4.OperationalizationofVariables

Variables DimensionsWork-lifeBalance(X1)Work-lifebalancereferstothesumtotalofthescoresattainedbytheworkingprofessionalonthree dimensions, that is,work intrusionwithpersonal life, personal life interfering withwork and work/personal life improvement(Hayman,2005)

1. Workinterferencewithpersonallife(WIPL)

2. Personallifeinterferencewithwork(PLIW)

3. Work/Personallifeenhancement(WPLE)

JobSatisfaction(X2)Job satisfaction is a pleasurable or positiveemotionalstateresultingfromtheappraisalofone’s jobor jobexperience (Locke in Luthans,2008:105)

1. Theworkitself2. Pay3. Promotion4. Supervision5. Co-workers

EmployeeTurnoverIntention(Y)Turnover intentions refer to three particularelements in the withdrawal cognition process(i.e.thoughtsofquittingthejob,theintentiontosearchforadifferentjob,andthenintentiontoquit)(CarmeliandWeisberginRahmanandNas,2013:568)

1. Intentiontoleave2. Intentiontosearch3. Plantoquit

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Sampling&DataCollection

ThesampleusedinthisstudyisagroupofemployeesofPTISSIndonesiawith working period less than 3 years and non-permanent employeestatus.Thedatathatareusedinthisstudyareprimaryandsecondarydata.The primary data are gained fromquestionnaireswhich are given to thechosen employees and through interview and observation. Thequestionnaires used contain the questions about work-life balance, jobsatisfaction, and employee turnover intention. The secondary data aregainedfromcompanydocuments,books,journals,articles,andmagazinesaboutwork-lifebalance,jobsatisfaction,andemployeeturnoverintention.DataAnalysis

Alldatagathered fromthequestionnaireswillbeanalyzedusingmultipleregression analysismethods and correlationof PearsonProductMomentmethods. Multiple regression analysis method is used to see therelationshipbetweenseveralindependentvariables(work-lifebalanceandjob satisfaction) and dependent variable (employee turnover intention).The correlation of Pearson Product Moment is used to analyze thecorrelationorinfluencebetweentwovariables.Inthisstudy,therewillbethreekindsofcorrelation, thatarecorrelationbetweenwork-lifebalancevariable and job satisfaction variable, correlation between work-lifebalancevariableandemployeeturnoverintentionvariable,andcorrelationbetweenjobsatisfactionandemployeeturnoverintentionvariable.

References

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Asiedu-Appiah, F., Mehmood, A., & Bamfo, B. (2015).Work-life BalancePractices,JobPerformance,andTurnoverIntentions.InternationalJournalofArts&Sciences,08(04),379–404.

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Hayman,J. (2005).Psychometricassessmentofan instrumentdesignedtomeasure work life balance. Research and Practice in HumanResourceManagement,13(1),85-91.

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Lee,T.W.,&Mowday,R.T.(1987).Voluntarilyleavinganorganization:Anempirical investigation of Steers and Mowday's model ofturnover.AcademyofManagementJournal,30(4),721-743.

Luthans, Fred. (2008). Organizational Behavior (11th ed.). Singapore:McGraw-HillInternationalEdition.

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Mathis,R.L.,&Jackson, J.N. (2011).HumanResourceManagement (13thed.).UnitedStatesofAmerica:South-WesternCengageLearning.

McNall, L. A., Masuda, A. D., & Nicklin, J. M. (2009). Flexible workarrangements, job satisfaction, and turnover intentions: Themediating role of work-to-family enrichment. The Journal ofPsychology,144(1),61-81.

McShane, Steven L. and Von Glinow, Mary Ann. (2015). OrganizationalBehavior:EmergingKnowledge,GlobalReality,7EGlobalEdition.Singapore:McGraw-HillEducation.

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EvaluationofPerformanceManagementtowardtheServiceQualityof

ProjectManagementOfficer(PMO)ResearchandInnovationinScience

andTechnologyProject(RISET-Pro)attheMinistryofResearch,

TechnologyandHigherEducation(Kemenristekdikti)inGiving

SatisfactiontotheParticipantsofRISET-ProDegreeandNon-Degree

Programs

CakawandaEmbut,StudentID.120820150062FirmanPriatna,StudentID.120820150023

MasterOfManagementProgram,FacultyOfEconomicsAndBusiness,UniversitasPadjadjaran(MmFebUnpad)

RESEARCHBACKGROUND

Organizationaldevelopment isnotonlyrelatedwiththeorganization,butalsotothehumanresourcesintheorganization.Organizationscandevelopwhenthere isan increase inhumanresourcesquality,either indegreeornon-degreeeducation.RISET-Pro, which was started in 2013, aims for the human resourcedevelopment in science and technology as a long term investment fornational development. It can not be separated from the Law No. 18 of2002ontheNationalSystemofResearch,DevelopmentandApplicationofScience and Technology, National Long-Term Development Plan (RPJPN2005-2025), National Medium-Term Development Plan (RPJMN 2010-2014)andNawacita,asoutlined inthePOM(ProjectOperationManual).The direction and policy are expected to sharpen the areas of expertisethat must be mastered and further developed in order to improvecompetitiveness, independence and well-being of the nation. Therefore,the improvement of the nation’s welfare is a top priority which can bepursuedthrougheconomicdevelopmentbasedoncompetitiveadvantage,resourcemanagementandimprovementofhumanresources.RISET-Procurrentlyhasoneofthemain indicators,that isto increasethepercentage of human resourceswithmaster or PhD degree and to havenon-degree programs in LPNK and Kemenristekdikti that focus onDeveloping S&T Human Resources Capacity. Based on the aboveexplanation,theplanningwhichhasbeenmademustbeequippedwithagoodmanagement.Furthermore,inaccordancewiththeneedsofLNPKor

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Kemenristekdikti, since Human Resources role is essential in theimplementation and achievement of organizational goals, it must besupported by service management by the PMO with the satisfaction ofparticipantsofRISET-ProDegreeandNon-DegreeProgramsastheoutput.During2013to2015,RISET-Prohasmanagedtosendsomeparticipantfordegreeandnon-degreeprograms,including:Table1.Numberofparticipantsofdegreeandnondegreeprograms

ProgramYear

2013 2014 2015

MasterDegree 5 21 13PhD 31 49 12FastTrack - 4 5NonDegree 139 258 247Figure1.Numberofparticipantsofdegreeandnon-degreeprograms

Basedonthetable,itcanbeseenthatthereisadecreaseinthenumberofparticipant of degree and non-degree programs, except the fast trackprogram.Subsequently,basedontheinformationwewouldliketoseethephenomenon of the problem and try to provide feedback to answer theexisting problems by looking at the service quality of the PMO.We alsohopethattheresultsmayhelptoincreasetheperformanceofthePMO.

050100150200250300

MasterDegree

PhD FastTrack

NonDegree

Tahun2013

Tahun2014

Tahun2015

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LITERATUREREVIEW

PerformanceManagementAccordingtoMangkunagara(2007:14):“Performance management is the process of planning, organizing,implementing,andcontrollingperformanceforgoalachievementwhichiscommunicated continuously between the leaders and employees andbetweenemployeesanddirectsuperiors)”.Theassumptionsbuiltare:a. Essentialjobfunctionsareexpectedb. How the work of an employee influences the achievement of

organizationalgoalsc. Whatistheconcretemeaningofdoingagoodjobd. How the employee and his immediate superior work together to

maintain, improve, and develop the performance of existingemployees

e. Howperformancewillbemeasuredf. Identificationof variousperformancebottlenecks andhow toget rid

ofthem.According to Hasibuan (2011: 121), In general, the purpose ofcompensation is to help the company to achieve its goals andobjectivesandensure the creationof internal andexternal justice. Thepurposesofcompensationbasicallyinclude:1. InstitutionalizedRelation

With the promised compensation, a formal relation occurs betweenthe company and employees. Employees have to fulfill theirresponsibilities to the fullest and the company is obliged to paycompensationinaccordancewiththecollectiveagreement.

2. JobSatisfaction

With an adequate remuneration, employees canmeet their physicalneeds, maintain their social status, and gain satisfaction from theirwork.

3. EffectiveProcurement

If the compensation program is offered and set large enough, theprocurementofqualifiedemployeesforthecompanywillbeeasier.

4. Motivation

Ifremunerationislargeenough,managerswillfinditeasytomotivatesubordinates.

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5. EmployeeStability

With the program based on the principle of fair compensation, thecompanybecomesmoresecureandgetsarelativelysmallturnover.

6. Discipline

Withtheprovisionofremunerationwhichislargeenough,employeesbecomemoredisciplinedandtheywillbeawareofandadheretotherulesofthecompany.

7. EffectsofTradeUnions

With a good compensation program, trade union influence can beavoidedandtheemployeescanbebetterontheirwork.

8. EffectsofGovernment

With the compensation program in accordance with the laborregulation in force (such as the minimum wage limit), governmentinterventioncanbeminimizedorevenavoided.

AccordingtoLuis,BiromoandHadisubrata(2012:182-185):“Performance management consists of three phases: performanceplanningwhere a dialoguebetween superiors and subordinatesoccurredintheagreedworkplanforthenextyear,performancemonitoringwhichroutinely delegates and monitors performance with feedbacks andguidance from superiors to subordinates, and the final evaluation ofperformancewhichevaluatestheperformanceofsubordinatesperiodically(quarterly,half-yearly)fortheachievementsthathavebeenattainedandthenecessaryimprovementsinthefuture”.Satisfacton

AccordingtoPhilipKotlerandKeller(2012):"Ingeneral, satisfaction is theperformance levelofaperson's feelingsofpleasure or disappointment resulting from comparing a product 'sperceivedperformance(oroutcome)againsthis/herexpectations".AccordingtoTjiptono(2008:176):Customersatisfactionisdonebyavarietyofpurposes,including:• Identifying customers’ needs and the aspects that are valued bycustomersandaffecttheirsatisfaction.

• Determining the level of customer satisfaction with the company'scustomersatisfactionratecomparedtootherorganizations’,bothdirectandindirectcompetitors.

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• IdentifyingPFIbyusinggapanalysisbetweenthelevelofimportanceandsatisfactionscores.

• Measuringcustomersatisfactionindexwhichcanbeareliableindicatorinmonitoringtheprogressofthedevelopmentovertime.

ServiceQuality

AccordingtoParasuramaninForsythe(2008):“Dissection of their work begins with their dimensions of theservicequalityconstruct. Their efforts draw on studies of financialservices,telecommunications providers and product repairers. Their first attemptdefined tengenericdimensionsofservicequality([30]Parasuramanetal.,1985)”.Thiswaslaterrefinedtofivedimensions([31]Parasuramanetal.,1988),consistingof:1. Reliability. Ability to perform the promisedservicedependably and

accurately.2. Responsiveness. Willingness to help customers and provide

promptservice.3. Assurance. Knowledgeand courtesyof employeesand their ability to

inspiretrustandconfidence.4. Empathy. Caring, personalized attention the firm provides to its

customers.5. Tangibles.Physicalfacilities,equipment,andappearanceofpersonnel.

RESEARCHMETHODS

VariablesandDataThe object of the research is the source of the data acquired for theresearch conducted. The subjects taken for this study consist ofindependent variables , namely planning of service procedure (X1),Organization of PMO service procedure (X2) service procedureimplementation (X3), PMO service quality control (X4) and dependentvariableofsatisfactionofparticipantsofRISET-Prodegreeandnon-degreeprograms (Y). The units that will be examined in this research are theparticipants of RISET-Prodegree andnon-degreeprograms (randomly) atthe Ministry of Research, Technology and Higher Education and LPNK(Non-MinisterialGovernment Institution), forexample,LIPI,LAPAN,BPPT,BATAN,BSNandBAPETEN.Inaddition,wewillconductinterviewwiththePMOandRISET-Proconsultantsaswellasdocumentation.

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Thedatathatwillbeusedinthisresearchareprimarydatagatheredfromquestionnaires. The questionnaires will be given as the information forevaluating service quality in RISET-Pro and will indirectly improveperformancemanagementofthePMO.WriterswilluseLikertscaleasthemeasuringscaletoevaluatetheanswersfromallrespondents.Malhorta&Birks (2006) said that Likert scale can be used tomeasure someone’s orgroup’sgesture,opinion,andperceptionaboutaphenomenonandcanbemeasuredquantitatively.Writerswill use Likert scalewith5point rating,namely:1=StronglyDisagree2=Disagree3=Neutral4=Agree5=StronglyAgreeDataAnalysisAfter the data from questionnaires have been acquired, writers willtranslate the data to know the correlation among planning of serviceprocedure (X1), Organization of PMO service procedure (X2) serviceprocedure implementation (X3), PMO service quality control (X4) anddependentvariableofsatisfactionofparticipantsofRISET-Prodegreeandnon-degreeprograms(Y).First,writerswillcalculaterespondents’answerinto an average score (mean) from from all the questions in thequestionnaires. The interpretation of the mean will be followed by theintervalwhich ismentioned inTable3.Then,eachof indicators fromthevariables (knowledge management, competitive advantages, andorganizational performance)will be interpreted inmean and categorizedbasedonTable3.Afterallthecriterionisinterpreted,writerswillknowtherespondents’agreeabilityaboutthevariables.

Table3.Respondents’AnswerInterpretationfromMeanCalculatedInterval Category

4,2<Mean=<5,0 StronglyAgree3,4<Mean=<4,2 Agree2,6<Mean=<3,4 Neutral1,8<Mean=<2,6 Disagree1,0<Mean=<1,8 StronglyDisagree

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ThedatathenareverifiedbythestatisticsbyusingSPSS.Writerswillusesimple regression technique to know whether all variable have arelationship.Todetermine thecorrelation, symbolizedby“r”,writerswilluse correlationanalysis,which ismeasured from -1 to1. The strengthofthecorrelationisshowninTable4.

Table4.CorrelationStrengthInterpretation

CoefficientInterval RelationshipStrength

0,00-0,199 VeryLow0,20-0,399 Low0,40-0,599 Intermediate0,60-0,799 High0,80-1,000 VeryHigh

HypothesisFrom the explanation above, writers have developed the hypotheses,whichare:1. Planning of service procedure from the PMO has an impact on the

satisfaction of participants of RISET-Pro degree and non-degreeprograms

2. Service procedure organization done by the PMO has an impact onthe satisfaction of participants of RISET-Pro degree and non-degreeprograms

3. Service procedure implementation has an impact for the satisfactionofdegreeprogramsandnon-degreeparticipantsonRISET-Pro

4. PMO service quality control has an impact on the satisfaction ofparticipantsofRISET-Prodegreeandnon-degreeprograms

RESEARCHPURPOSE,LIMITATION,ANDORIGINALITY

In this study, thewriters examine four variables which include planning,organization, implementation,andcontrolof serviceprocedureaccordingtotheoryaspartofperformancemanagement.Therefore,weneedmoreresearchonhow theperformancemanagementof thePMO inprovidingquality services influences the satisfaction of participants of RISET-Prodegreeandnon-degreeprograms.

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REFERENCES

Forsythe, P. (2008). Modelling customer perceived service quality inhousing construction.Engineering, constructionandArchitecturalManagement, 15(5), 485-496. Retrieved fromdoi:http://dx.doi.org/10.1108/09699980810902767

Hasibuan, Malayu S.P. (2011).Manajemen Sumber Daya Manusia edisirevisi[HumanResourceManagement,revisioned.]Jakarta:BumiAksara.

Kotler,Philip&KevinL.Keller(2012).MarketingManagement.NewJersey:PrenticeHall.

Kusuma,F.S.D.&Devie.(2013).AnalisaPengaruhKnowledgeManagementTerhadapKeunggulanBersaingdanKinerjaPerusahaan[AnalysisofKnowledgeManagementInfluencetowardCompetitiveAdvantageandCorporatePerformance].BusinessAccountingReview,1(2).

Luis,Suwardi,Biromo,PrimaA&Hadisubrata,Raymond.EvenElephantscanDance“TransformingOrganizationsthroughStrategyandPerformanceExecutionExcelence(SPEx2)”.Jakarta:GramediaPustakaUtama.

Mangkunegara, Anwar Prabu (2014). Evaluasi Kinerja SDM [HRPerformanceEvaluation].Bandung:RefikaAditama.

Tjiptono,Fandy(2008).ServiceManagementMewujudkanLayananPrima[ServiceManagementtoAchieveServiceExcellence] .Yogyakarta:CVAndi.

RISET-ProProjectOperationManual2013

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THEEFFECTOFASSETMANAGEMENTANDLIQUIDITYONTHESTOCK

PRICEOFPROPERTYANDREALESTATECOMPANIESLISTEDONTHE

STOCKEXCHANGEFORTHEPERIOD2010–2015

NovithaSariwulan,StudentID.120820150029,

novithasariwulan20@gmail.comRiskiAriansyah,StudentID.120820150038,riski.importindo@gmail.comMasterofManagementProgram,FacultyofEconomicsandBusiness,

UniversitasPadjadjaran(FEBUNPAD)

I.INTRODUCTION

The capital market of Indonesia has been attracting many sectors,especially business sector. Through capital market activities, companiescan obtain funds to finance its operational activities and expand thecompany.Capitalmarketisalsoameanstosolveliquidityproblemsfacedbycompaniesaswellasoneof investment facilities forpartieswhohavelargefunds.

One of themain instruments to analyze the fundamental condition of acompany is financial information. Because it reflects the condition ofcompany’ssoundnessandfutureprospects.Itprovidesinformationaboutliquidity, profitability, activity and management assets which have beendonebythecompany.

The increasingly difficult economic situation due to the effect of currentglobalcrisiswillhaveanimpactonintensecompetitioninthebusiness.Inthis situation, companies are required to make efforts to maintain theircompetitiveness continuously. One way of doing so is by improving theefficiency and effectiveness of corporate financial planning, so that thecorporate goals can be achieved. In addition, companies are required tomakefinancialdecisionssuchas investmentdecisions, financingdecisionsandassetmanagementdecisionscorrectlyandappropriately.Company’s activity level show the efficiency and effectiveness of thecompany.Thehigher theactivity level is, thegreaterof the flowofcashreceived. It also means that the company becomes more effective inmanaging assets. It’s necessary for proper management systems tooptimize assets in order to yield maximum profit. According to Sofyan

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Harahap Syafri (2001: 107) in his book Critical Analysis of FinancialStatements, asset is "property owned by companies that has a role incompany operations which includes cash, inventory, fixed assets,intangibleassets, andothers”.Anotherpurposeof assetmanagement, inaddition tomaximizing profits and shareholder value, is tomaximize thevalue of the company. Proper asset management is expected to buildinvestor confidence in thecompanywhich later results in the increaseofthecompany’sstockprice.TheresearchbyPrasetyo,Dimas,ZahrohZ.A,andDeviFarahAzizah(2012)shows that the investment decisions and funding decisionsmadeby realestatecompanieswillaffectthevalueofthecompanies.Themanagementmustbecarefulinmakinginvestmentdecisionsandfundingdecisionssincetheywillaffectthecompany'sgrowthprojectionsaswellasthecompany'sstock price on the stock exchange. Investment decisions taken by thecompany'sfinancialmanagerswillaffectthevalueofcorporateassets.Thisshouldbe consideredby investors inmeasuring the company's projectedgrowth.Liquidityisoneofthefactorsthatcanstimulatestockpricechanges.Highliquidityindicatesthecompany'sabilitytofulfillitsshorttermobligations.The company's liquidity can be measured by current ratio. The currentratio indicates a company's ability to pay current liabilities using currentassets held (Sudana, 2009: 24). The function of using the funds includesplanningandcontrollingtheuseofassetsintheformofcurrentassetsandfixedassets,sothattheamountoffundsthatareembeddedineachoftheassetelementsisnottoosmallontheonehand,soasnottointerferewiththe liquidityandbusinesscontinuity,andon theother theamount isnottoolargebecauseitcancauseidlefunds.PropertyandrealestatesectorisoneofthemainsectorsintheIndonesiaStockExchange.CompaniesinthePropertyandRealEstatesectoraretheobjectsofinvestmentwhicharedemandedbymanyinvestors.Thissectorhas a largemarket capitalization. The existence of the property and realestate sector contributes significantly to fulfill the needs for housing orresidenceofIndonesiansociety.Basedontheseconditions,thecontinuityofpropertyandrealestatecomapniesmustbeguardedcontinuously.

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The price of stocks owned by property and real estate company reflectsinvestorconfidence towards thecompany. Inorder tomaintain thestockprice at theoptimum level, the company’smanagementmustbeable todemonstrate positive performance of the company as well. Among thethingsthatthecompanydoesistomakesurethattheassetmanagementand liquidity integration can be maintained in ideal conditions. Thecompanymust be able to organize andmobilize every asset, in order togive the highest benefit for the company. Similarly, property and realestatecompaniesneedtohaveastable liquidity inordertomaintaintheconfidenceof investors inmaintainingthestockpriceonthemarket.Themore stable the liquidity of the company, the higher the confidence andinterestof investors to invest,which in turnwill keep thepositionof thestockpriceattheoptimumpoint.Based on the background of these problems, the authors formulate theresearchproblemsasfollows:1. Describeassetmanagement, liquidityandstockpriceofPropertyand

Real Estate Companies Listed on the Stock Exchange for the Period2010-2015?

2. How does assetmanagement affect the stock price of Property andReal Estate Companies Listed on the Stock Exchange for the Period2010-2015?

3. Howdoes liquidityaffect the stockpriceofPropertyandReal EstateCompaniesListedontheStockExchangeforthePeriod2010-2015?

4. How do asset management and liquidity affect the stock price ofPropertyandRealEstateCompaniesListedontheStockExchangeforthePeriod2010-2015?

This research isexpectedtoprovideadditionalknowledge in theareasoffinancialmanagement,especiallyregardingthecompany'sconsiderationinusing assetmanagement ratio, liquidity ratio and stock price. As for theauthors, this study is expected to provide additional insight and way ofthinkingaspartofthelearningprocess,soastounderstandtheapplicationof the theories thathavebeenobtained from the lecturecomparedwithactual practice, particularly regarding consideration of using assetmanagement ratio and liquidity ratio to the stock price, especially inpropertyandrealestatecompanies.

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As for companies and investors, this research is expected to provide areference in theanalysisofassetmanagement ratioand liquidity ratio toassess the company's stock price and can be a tool for investors beforebuyingastock(makinginvestmentdecisions).

II.LITERATUREREVIEWANDRESEARCHFRAMEWORK

2.1AssetManagement

AssetManagement is a new scientific field in education arising from thephenomenonof rich resources, bothnatural resources, human resources(HR),andalsotheinfrastructurethatisnotmanagedproperly.2.1.1DefinitionofAssetManagement

The government of South Australia in Hariyono (2007), defines assetmanagementas“…aprocesstomanagedemandandguideacquisition,useanddisposalofassetstomakethemostoftheirservicedeliverypotential,andmanagerisksandcostsovertheirentirelife”.Anotherdefinitionisthatassetmanagementincludesaprocesswhichbeginsfromplanningthroughtheelimination(disposal)andneedsasupervisionoftheseassetsoverthelifeofitsusebyanorganizationorministryoragency.2.1.2ThePurposeofAssetManagement

BasedonSutrisno(2004),thegeneralpurposeofassetmanagement istodirectthemanagementsystemofassetsothattheirutilizationiseffectiveand efficient. While the specific purpose of asset management is toimprove the quality of assets, increase the use and utilization of assets,improve the quality service of assets and increase service coverage ofassets.2.1.3AssetForm

According to Sutrisno (2004), assets based on its shape are divided intotwo types, namely tangible assets and intangible assets. The form oftangibleassetsarebuildings, infrastructure,machineryorequipment,andfacilities.AsforintangibleassetsisSystemOrganizations(Purpose,Vision,and Mission), Patent (Copyright), Quality, Goodwill (good name/image),Culture, Capacity (Attitude, Law, Knowledge, Expertise), Contract(Agreement)andMotivation.

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2.1.4CategoryofAssets

According to Hariyono (2007), the category of public assets in theinternational rules includes operating assets, non-operating assets,infrastructureassetsandcommunityassets.ThecategoryofpublicassetsisshownintheTable2.2.

Tabel2.2CategoryofPublicAsset

Category Asset

OperatingAssets LandincludingspecialpropertyOfficialResidenceOtherhousingOfficeBuilding

SchoolLibrary

SportcentreGolf

DormitoryMuseumdanGallery

MachineShopParkingLotAutomobileMachineGraveyard

Non-OperatingAssets LandtobebuiltCommercialProperty

InvestmentAsset(SurplusAsset)ExcessAsset

InfrastructureAssets RoadwayHarbour/dock

BridgeWaterwaysOthers

CommunityAssets YardandParkHistoryBuildingArtBuildingMuseum

PlaceforWorshipSource:Hariyono(2007)

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2.1.5AssetManagementCycle

Physical lifecycleofanassetoragroupofassetshas removal (disposal).Thenitisaddedthefourthphase,whichisplanninganadvancedprocessinwhichtheoutputofeachphase information isusedas input forplanning(Hariyono,2007).Anassethasalifecyclethatdifferentiatesitfromotherresourceinputs.Inparticular, the responsibility for procurement decisions (and cost) in anorganization, in contrast with the responsibility for the operation andmaintenance of assets, and the responsibilities are different from theresponsibilitytodotheremoval.Figure2.3showstheassetlifecycle

Figure2.2.AssetLifeCycle

(Source:Hariyono,2007).Thephaseswhichanassetthroughduringitslifecycle,amongothersare:1. Identify needs (planning phase), is when the demand for assets is

plannedandmade;2. Procurement phase, is when the asset is purchased, constructed or

manufactured;3. Theoperationsandmaintenancephase, iswhentheassetsareused

for the intended purpose. This phase may be interspersed with aperiodic update or a major overhaul, reimbursement of damagedassetsintheperiodofuse;and

4. Lossesphase(disposal),iswhentheeconomiclifeofassetshasbeenexhaustedorwhentheneedforservicesprovidedbytheassetshasbeenlost.

Procurement

Operation

Planning

Removal

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2.1.6AssetManagementRatio

Formeasuring the effectiveness ofmanagement in the use of corporateresources, the activity ratio involves a comparison between the level ofsalesandinvestmentsinvarioustypesofassets.Thisratioiscomposedofinventory turnover, day sales outstanding, fixed asset turnover, and totalassetturnover.Wheretherearetworatiosthatdescribetheoverallassetmanagement of a company that are inventory turnover and total assetturnover.

2.1.6.1InventoryTurnoverRatioInventory is a goods purchased and then processed into other goods ordirectly sold inaccordancewith the typeofcompany. Inventory turnoverexplainshowtomeasuretheeffectivenessof thecompanytomanage itsinventory so that the utilization of working capital can be optimal andefficient. This ratio is calculated by the formula (Houston and Brigham,2001)asfollows:

!"# = !"#$%!"#$"%!"#

2.1.6.2TotalAssetTurnoverRatioThisratioshowstheeffectivenessofusingallcompany’spropertyinordertogeneratesalesornetsaleswhichillustrateshowmuchmoneythatcanbe generatedby every penny invested in the company. If the company’sproperty is slow-moving, it indicates that the assets are too largecomparedwiththeabilitytosell.According to Lawrence J.Gitman (2006: 55) : “Total Asset Turnoverindicates the efficiency with which the firm uses its assets to generatesales”.Itmeansthattotalassetturnovershowstheefficiencyofcompanyinusingitsassettogeneratesales.AccordingtoRidwanandIngeD.SundjajaBarlian(2003:189):"totalassetturnover indicates the company's efficiency in using all its assets on theproductionofsales".Thehigher theasset turnover, themoreeffective thecompanymanagesitsassets.TotalAssetTurnoverRatiocanbecalculatedusing the formula(VanHorne,2005:221):

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!"!# = !"# !"#$%Total Asset

2.2Liquidity

Liquidityisoftenusedbycompaniesandinvestorstoknowthelevelofthecompany'sabilitytofulfillitsshort-termliabilities.Theshort-termliabilitiesinclude paying utility bills, salaries, or debts that have matured. Butsometimes there are some companies that are unable to pay debts at apredeterminedtimeduetoinsufficientfundstocoverthedebtsthathasvebeenmaturing. Such condition will disrupt the relationship between thecompanyandcreditors,aswellasdistributors.Inthelong-term,itwillhavean impact on customers. This means that eventually the company willsuffer theeconomic crisis, since the companydoesnothave the trust ofcustomers.Liquidity ratios are also known as balance sheet ratios. These ratios arecalculated based on data derived from the balance sheet. LukmanSyamsudin(2002:43-51)saidthattheliquidityratiosormeasurementsaredividedintotwo,namely:1. Measuringcompany’s liquidityasawhole.Therearethree important

waysofmeasuringthelevelofoverallliquidity,namely:a. NetWorkingCapital,isthedifferencebetweencurrentassetsand

current liabilities. The calculation of net working capital is asfollows:NetWorkingCapital=CurrentAssets–CurrentLiabilities

b. CurrentRatio,isoneofthefinancialratiosthatisoftenused.Thelevel of current ratio can be determined by comparing currentassetswithcurrentliabilities:

!"##$%& !"#$% = !"##$%& !""#$"!"##$%& !"#$"%"&"'(

c. Acid-testRatioorQuickRatio,isoneofthecomponentsofcurrentassetswhichhastoberemoved.Thecalculationisasfollows:

!"#$ − !"#! !"#$% = !"##$%& !""#$" − !"#$"%&'(!"##$%! !"#�!"!#$%

2. Measuring the level of liquidity by using the ratio of net workingcapital,currentratio,andacid-testratio isnotenoughbecausethesemeasurements do not pay attention to each component of currentasssetsandcurrentliabilities.

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2.3CommonStockPrice

Common stock price is the price of a stock on the ongoing market.AccordingtotheLawNo.8of1995onCapitalMarkets,essentially,sharepriceconstitutesacceptanceof the sacrifices thatmustbemadebyeachinvestor's participation in the company. If the stock exchange market isclosed,thenthemarketpriceistheprice.2.3.1ChangesofStockPrice

AccordingtoSuprodjoinSatria,factorsthatcanbeasourceofriseorfallof stock prices (stock price changes) as in value are factors that can bemeasured with numbers and those that can not be measured withnumbers.2.3.2 TheTheoryofStockPrice

a. Valuation Model is a mechanism for changing a series of economicvariables,orvariables thatpredicted thecompany (orobserved) intoestimatesofthestockprice.

b. StrongFormEfficiencystatesthatallinformationreflectedinthestockprice include information that is personal or published (Lubis, 2006:123).

2.4 Framework

According to the background of problems and research objectiveswhichhavebeenmentionedabove, theauthorsmakethe following framework.Basedonthetheoreticaldescriptionandareviewofpreviousstudies,theindependent variablesof this research are Inventory Turnover (X1), TotalAsset Turnover (X2), Current Ratio (X3) and Quick Ratio (X4), while thedependent variable is Stock Price (Y). The relationships among InventoryTurnover,TotalAssetTurnover,CurrentRatioandQuickRatioarereflectedinthestockpriceasshowninthefollowingframework:

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2.5Hypothesis

Based on the formulation of problems and conceptual framework, theresearchhypothesesare:H1:InventoryTurnoveraffectsStockPriceH2:TotalAssetTurnoveraffectsStockPriceH3:CurrentRatioaffectsStockPriceH4:QuickRatioaffectsStockPriceH5:InventoryTurnover,TotalAssetTurnover,CurrentRatioandQuickRatioaffectStockPrice

III.RESEARCHMETHODOLOGY

3.1TheMethod

This research uses descriptive and verification method with quantitativeapproachthatisobtainedfromthedocumentation.Thismethodisusedtodeterminetheeffectofassetmanagementandliquidityonthestockpriceof Property and Real Estate Companies Listed on the Stock Exchange forthePeriod2010-2015.3.2OperationalizationofVariabels

Basedontheresearchtitlethatassetmanagementandliquidityaffectthestock price of Property and Real Estate Companies Listed on the StockExchange for the Period 2010-2015, research variables are then dividedinto independent variables (X), namely asset management ratio as

PRICE STOCK

(Y)

H1 H2

H3

H4

H5

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measuredbytheInventoryTurnover(X1)andTotalAssetturnover(X2)aswellastheliquidityratioasmeasuredbyCurrentratio(X3)andQuickratio(X4);anddependentvariable(y),namelythestockprice(Y)ofcompanies.3.3DataSource

Thedatausedinthisresearcharesecondarydataobtainedfromfinancialstatements for the period 2010 - 2015 and summary data as well asfinancialperformanceofstockpriceofPropertyandRealEstateCompanieslisted on the Stock Exchange for the period 2010-2015 retrieved fromwww.idx.com,aswellasotherWebsitesthatsupportthisresearch.3.4 DataCollectionTechniqueDatacollectiontechniquesusedinthisstudyinclude:astudyof literatureasthesourceofinformationfoundbyexpertsthatisobtainedfromlibrarybooks; and documentation by taking secondary data from the financialstatements of property and real estate companies listed on the StockExchange,respectively,fortheperiod2010-2015.3.5SampleandPopulationThepopulationof this research is all property and real estate companieslistedontheStockExchangefortheperiod2010-2015,andthesamplingisdonebyusingpurposivesamplingtechnique.3.6DataAnalysistandTestingTheHypothesis

Descriptive analysis is used to describe each variable while verificationmethodisusedtoexaminethedata.Testingisconductedtocalculateandseewhetherthereisaneffectof inventoryturnover,totalassetturnover,current assets and quick ratio on the stock price on property and realestatecompanies listedonBEI fortheperiod2010-2015.Tofacilitatetheprocessingofthedata,thewritersuseSPSS.Thedetailswillbediscussedbelow:

3.6.1 DescriptiveAnalysis

Descriptivestatisticswillprovideanoverviewofeachofthevariables.Theanalysis tool used is the average value (mean), minimum andmaximumvaluesandstandarddeviations.3.6.2 RegressionAnalysis

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Multiple linear regression analysis is an analysis tool for forecasting theinfluenceoftwoormoreindependentvariablesondependentvariabletoprove whether there is a functional correlation or a causal relationshipbetweentwoormorevariableswithonedependentvariable"(Riduwan,etal.,2012:p.108).3.6.2.1 ClassicalAssumptionTest

The classical assumption tests used in this research are normality,autocorrelation, heteroskedasticity and multicollinearity as describedbelow:1. NormalityTest

Normality test aims to test whether in the regression model,dependent variableor independent variable, or bothhave anormaldistribution or not. A good regression model is normal or nearlynormaldistribution.

2. AutocorrelationTest

Autocorrelationtestaimstotestwhetherinalinearregressionmodel,thereisacorrelationbetweenthesamplemembersthataresortedbytime.Todetectthepresenceorabsenceofautocorrelation,RunTestcan be used. If there is no relationship or correlation between theresiduals,itissaidthattheresidualsarerandom.

3. HeteroskedasticityTestHeteroskedasticitytestaimstotestwhether intheregressionmodel,unequal residual variance from one observation to anotherobservation occurs. To detect the presence or absenceheteroskedasticity, graphical method can be used, which includes apredictionplot fordependentvariable (ZPRED)andresidual (SRESID).Thebasisofchartanalysisisthatifthereisaspecificpattern(suchaspoints that form certain patterns that are corrugated, widened andthennarrowed),thenheteroskedasticityisindicatedtohaveoccurred.

4. MulticollinearityTest

Multicollinearitytestwasconductedtotestwhetherintheregressionmodel, a correlation between independent variables occurs. Thepresenceor absenceofmulticollinearity in the regressionmodel canbeseenfromthevaluesoftoleranceandthevarianceinflationfactor(VIF).

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3.6.2.2 PearsonCorrelation

Analysis of correlation coefficient is used to see how strong therelationshipbetween independent variables anddependent variable. Themagnitudeofcorrelationiscalledcorrelationcoefficient(r).

3.6.2.3 DeterminationofCoefficient

The independent variables in this study are asset management asmeasured by inventory turnover and total asset turnover, and liquidityratio asmeasuredby current ratio andquick ratio,which simultaneouslyaffectthedependentvariable,i.e.stockprice.3.6.2.4 HypothesisTesting

Instatistics,nullhypothesisproposesthatthere isnodifferencebetweenthe statement and statistical parameters (sample). Conversely, thealternative hypothesis states that there are differences between theparametersandstatistics(ErmoryinSumarni&Wahyuni,2006:112).3.6.2.5 SimultaneousTesting

Basedonthepurposeofthisstudy,thevariablestobeanalyzedconsistofindependent variables, i.e. Inventory Turnover (X1), Total Asset Turnover(X2),CurrentRatio (X3)andQuickRatio (X4)anddependentvariable, i.e.shareprice (Y). Theoverall hypotheses in this studyare:Ho: (there is nosignificant difference between Inventory Turnover, Total Asset Turnover,theCurrentRatioandQuickRatio to thestockpriceofpropertyand realestatecompanieslistedontheStockExchangefortheperiod(2010-2015)H1: β1 ≠ β2 ≠ β2 ≠ β4 ≠ 0 (there is a significant difference betweenInventoryTurnover,TotalAssetTurnover,CurrentRatioandQuickRatiotothestockpriceofpropertyandrealestatecompanies listedon theStockExchangefortheperiod2010-2015).Alphavalueused inthisstudy isα=5%.3.6.2.6 PartialHypothesis(t-test)

T test is performed to determine the significance of the partial effect ofindependent variables on dependent variable (Sugiyono, 2009: 194). Thegoal is to determine whether each independent variable has significantcorrelation.

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References:Arikunto, S. (2009). Prosedur Penelitian Suatu Pendekatan Praktik

[ResearchProcedures:AParcticalApproach](6threv.ed.).Jakarta:RinekaCipta.

Brigham&Houston.(2010).Dasar-dasarManajemenKeuangan[PrinciplesofFinancialManagement].Jakarta:SalembaEmpat.

Ghozali,Imam.(2011).AplikasiAnalisisMultivariateDenganProgramSPSS[MultivariateAnalysisApplicationwithSPSS].

Hadi, Sutrisno. (2004).Metodologi Research [ResearchMethodology] (3rded.).Yogyakarta:Andi.

Harahap, Sofyan Syafri. (2001). Analisis Kritis Atas Laporan Keuangan[Critical Analysis of Financial Statements] (3rd print.). Jakarta: PTRajagrafindoPersada.

Haryanto&TotoSugiharto.(2003).PengaruhRasioProfitabilitasTerhadapharga Saham Pada Perusahaan Industri Minuman Di Bursa EfekJakarta [The Effect of Profitability Ratio on the Stock Price ofBeverage Industrial Companies on the Jakarta Stock Exchange).JurnalEkonomidanBisnis[JournalofEconomicsandBusiness],8(3),142.

Kasmir. (2008). Bank dan Lembaga Keuangan Lainnya [Bank and OtherFinancial Institutions] (rev. ed.). Jakarta: PT RAJAGRAFINDOPERSADA.

Munawir, S. (2002). Analisis Laporan Keuangan [Financial StatementAnalysis](2nded.).Yogyakarta:YPKN.

Nazir, Moh. (2011). Metode Penelitian [Research Methods] (6th print.).Bogor:PenerbitGhaliaIndonesia.

Prasetyo,Dimas,ZahrohZ.A,&DeviFarahAzizah.(2012).PengaruhKeputusan Investasi dan Keputusan Pendanaan terhadapNilaiPerusahaan(StudipadaPerusahaanSektorPropertidanRealEstate yangTerdaftar Di BEI Periode Tahun 2009-2011) [TheEffectofInvestmentDecisionandFundingDecisisononCorporateValue(StudyatPropertyandRealEstateCompanies listedonBEIforthePeriod2009–2011)].JurnalIlmuAdministrasi[JournalofAdministativeSciences].Retrievedfromhttp://portalgaruda.com/

Priyatno, Duwi. (2012). Cara Kilat Belajar Analisis Data dengan SPSS 20[Shortcut to Learning Data Analysis with SPSS 20]. Yogyakarta:AndiOffset.Semarang:BadanPenerbitUniversitasDiponegoro.

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Sartono,Agus. (2008).Manajemenkeuangan, teoridanaplikasi[FinancialManagement:TheoryandApplication].Yogyakarta:BPFE.

Sawir, Agnes. (2000). Analisis Kinerja Keuangan dan PerencanaanKeuangan Perusahaan [Financial Performance Analysis andCorporate Financial Planning] (2nd ed.). Jakarta: PT GramediaPustakaUtama.

Sugiyono. (2014).MetodePenelitianKuantitatif,Kualitatif,danKombinasi(MixedMethods)[ResearchMethods:Qualitative,QuantittiveandCombination(MixedMethods)].Bandung:Alfabeta.

Syamsudin,Lukman.(2002).ManajemenKeuanganPerusahaan[CorporateFinancial Management], (7th print.). Jakarta: PT Raja GrafindoPersada.

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THEEFFECTOFLOCATION,PUBLICFACILITIESANDACCESSIBILITYTO

PROPERTYVALUEINKOTABARUPARAHYANGAN

MuhammadRidwanAdriawan–120820150033FreddyBudiono–120820150034

MasterofManagementProgramFacultyofEconomicsandBusinessUniversitasPadjadjaran

I. Introduction

Oneofthemostbasicneedsofpeopleishousing.Houseasaplacetoliveisaprimaryneccessitybesidesclothesandfood.Itisneededbyeveryoneas a shelter aswell aswhere family activities take place.Moreover, it isalsopossible for people to invest inhouses. The functionof a househasnowshifted;itusedtobeneededonlyforshelterbutnowahousehastoaccomodateitsowner’sneedanddesire.Forinstance,astrategiclocation,nice and solid building, adequate facilities, good accessibilty and acomfortableenvironment.Inotherwords,notonlythatahousemustbeaproper place to live in, but it also has to be decent. Housing andsettlementsareofparamountimportanceastheyfunctionasthecenteroffamilyeducation,culturalpreservationandfortheimprovementoffuturegenerations.Besides functioning as a shelter, a house can also function as a businessplace. Therefore, a strategic location, proper public facilities and goodaccessibilty isneededasa support system.Public facilitiesaredevelopedasapartofahousingcomplexforthesakeofpublic’sneeds.Forexample,streets, public transportations, installation of waste water, plumbing,electricity,garbagedisposal,andsoforth.TheLawNo.1of2011onhousingandresettlementareasstatesthatthedeveloperhastoprovidealandforpublic’s needs. The public facility provision by the developer has to bearound 20-30% from the total area. Because of the high percentage ofdemandedprovision,manydevelopersendupnotprovidingthoseneededfacilities.Therealizationofthepeople'swelfareandqualityofhumanresourcescanbecharacterizedbyanincreasedqualityoflifepropriety.Housingdemandisareflectionofanofferdonebyadeveloperofahousingpropertytohelppeoplemeet their housing needs. Demandwill occur if an individual has

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thewillingnessandtheabilitytobuygoodsorservices(Sukirno,2005).Thefunction of housing will become even more apparent if the developerprovides proper facilities. Strategic location is an important factor ininfluencinganindividual’sdemandofhousing,asstatedbyYudi(2009).Kota Baru Parahyangan is a well-known housing and property located inWest Bandung. Based on the writers’ initial observation, it could beconcluded that Kota Baru Parahyangan has strategic location, as well asgoodpublicfacilitiesandaccessibility.Referringtothosethreeaspects,thewriters’ see the tendency of those variables contributing positively to apromisingvalue.Therefore, thewritersare interested toconducta research regarding theissue,which later ispresented ina researchpaperentitled“TheEffectofLocation, Public Facilities andAccessibility to PropertyValue (Housing) inKotaBaruParahyangan”.II. LiteratureandResearchFrameworks

Location - Location theory is a study that investigates spatial order ofeconomic activity, or a study that investigates geographic locations frompotential resources, as well as their relations and effects to any kind ofeconomicandsocialactivity.(Tarigan,2006).Location theory is a theoretical explanation about spatial order linked toeconomic activity. This is also associatedwith geographic locations fromlimited resources which ultimately will affect the location in whicheconomicandsocialactivitytakesplace.(Sirojuzilam,2006:22).Thunen, as cited in Tarigan (2006), argues about the difference in thelocation of agricultural activities on the basis of differences in land lease(economicconsiderations).AccordingtoVonThunen, themostexpensiveland leaserate isatthecenterofthemarketandthefarther itgetsfromthe market, the lower the rate. Von Thunen determined land leaserelationshipwithdistancetothemarketbyusingthedemandcurve.Basedon the comparison (difference) between the selling price and cost ofproduction,eachtypeofproductionhasadifferentabilitytopaytherentofland.Thehighertheabilitytopaytherentofland,themorelikelythatactivityisconvenientlylocatednearthecenterofthemarket.Theresultis

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apatternoflandusediagramwhichformsaring.ThedevelopmentofVonThunentheoryisthattherentofthelandwillbehighinthemiddleofthecityanditgetslowerasitgetsfurtherfromthecitycenter.Accessibility is one of many factors affecting people’s interest. Goodaccessibilty easespeople inheading towarda certain location, comparedtootherlocationsinthevicinity(Tarigan,2006).AccordingtoTarigan,thelevel of accessibility is influenced by distance, the condition oftransportation infrastructure,theavailabilityofconnecting infrastructuresincludingthefrequencyandlevelofsecurityaswellasconvenienceoftheroute.Intheanalysisofanexistingcityortownplan,thereisastandardforlocation requirement or standard ofdistance (Jayadinata, 1999: 160) asshowninTable2.1below:

StandardofDistanceintheCity

No Infrastructure DistancefromHouse(byWalking)

1.2.3.4.5.6.7.8.9.

WorkplaceCenterCityCenter(Market,etc)LocalMarketElementarySchoolJuniorHighSchoolSeniorHighSchoolKidsPlaygroundSportVenues(Recreations)PublicPark(Zoo,etc)

20minutesto30minutes30minutesto45minutes¾kmor10minutes¾kmor10minutes1½kmor20minutes20minutesor30minutes¾kmor20minutes1½kmor20minutes30minutesto60minutes

Source:ChapinascitedinJayadinata(1999).

PublicFacilities–Publicfacilitiesarethoseprovidedforpublic’sneeds.Forinstance, streets, public transportations, waterways, bridges, flyover,underpass,busstops,publiclightingequipments,electricalnetworks,floodcanals, sidewalks, busway lanes, landfills, etc. (Regulation of Minister ofHomeAffairsNo.9of2009). Infrastructuresthatmustbeprovidedareasfollows(SastradanMarlina,2006:145-146):Streets-Streetsaroundaresidentialareacanbeclassifiedasfollows:• Connecting Streets are the ones connecting a residential area with

another, or connecting a residential area with facilities outside thearea

• MainStreetisthemainroadofaresidentialarea

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• LocalStreets,whichdevidearesidentialareaanditshierarchyislowerthanthemainstreet

The street proportion in a residential area can be divided into severaltypes,namely:• FortypeIresidentialareas,localstreetsIIandIIIare80%,localstreets

Iare15%,andmainstreetis5%• FortypeIIresidentialareas,localstreetsIIandIIIare60%,localstreets

Iare30%,andmainstreetis10%• For type III residential areas, local streets II and III are 40%, local

streetsIare40%,andmainstreetis20%

Accessibility-JohnBlacksaysthataccessibilityisameasureofcomfortorconveniencetogotoalocation,whetherornotit iseasytoreachbyanykind of transportation (Leksono et al, 2010). Accessibility is a broad andflexible concept. Kevin Lynch argues that accessibility is amatter of timeanditalsodependsontheattractivenessandrouteidentityoftravel(TalavEra,2012).Accessibility is defined as a measure of comfort or convenience of alocationandhowthe locationconnects toothers,aswellaswhether thelocationiseasytoreachbyusinganytransportationsystem.Eachdifferentgeographicallocationhasdifferentlevelsofaccessibilityandthisisduetodifferencesintheactivitiesofeachlanduse.

TransportationAccessibilityBarriers

Location

Travel time includingwalking,waiting, andin the vehicle in relation to the allottedtime.TheabilitytoexchangebetweenallmodeswithintheintegratednetworkAvailableroutes

PhysicalAspects

VehicledesigninaccordancewiththeuserSidewalk’selevationTopography

Time

Transportationsystem

WaitingtimeTransportationscheduleandactivity

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Capacity

BudgetTravelexpenseDeductionforpedestrians

Surrounding

LightingWaitingtimeSecurity

InformationTouristinformationTravelinformation

Moreover,accessibilityalsohastheidealmeasurementcriteria,consistingofsecurity,convenience,comfort,andaesthetics.Accessibility

CriteriaEquipment

Modes

Pedestrian Cycling Transit Auto

Security

Lighting √ √ √ √Crimearea √ √ √ √Number of restarea

√ √ √

Maximumspeed √ √ √Widthoftheroad √ √ √Condition ofsidewalks

√

Litters √ √ √

Bicyclelanes √ √ √Width of bicyclelanes

√ √ √

Lightingforbikers √

Continuity ofsidewalk

√ √ √

Streetsigns √

Convenience

Connection tootherplaces

√ √ √ √

Parkinglot √

Services √

Requirredtransfer √

Bikeracksonbuses √ √

Comfort

PedestrianShelter √

ShelteratBusStop √

BenchatBusStop √

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Topography √ √

AestheticLandscapeview √ √

Signage √ √ √ √

III. ResearchMethodology

Quantitative approach is used in conducting this research. The methodapplied by the writers is descriptive quantitative verification method.Descriptive method is meant to provide a description of a situation oroccurrence.AccordingtoSuryabrata(2001:18),thepurposeofdescriptiveresearch is tomake an accurate and factual illustration of facts and thenatureofapopulation,oraparticulararea.Meanwhile Sugiyono (2009:55) proposes that verification method is atechnique that questions two ormore variables.Moreover, according toMashuri(2008)ascitedinNarimawatiUmi(2010:29),verificationmethodisamethodthatverifiesthetruthbytestingonetechniquewithorwithoutimprovement that has been done in other places, by means to solveproblems.”Theapproachusedinthisstudyisthequantitativeapproach.Quantitativeresearch(inPurwanto,2012,p.164) isaparadigmof lookingatthetruthas a single, objective, universal and verifiable. In linewith theopinionofPurwanto,Creswell (2010,p.5)definesquantitative researchasmethodsto test certain theories by examining the relationship between variables.Thesevariablesareusuallymeasuredwithinstrumentsofresearchsothatdata,intheformsofnumbers,canbeanalyzedusingstatisticalprocedures.Quantitative research simplifies the complexity of a phenomenon byreducting it to a measurable dimension. This research does not aim todevelopatheory,butrathertotestandverifyit.Therefore,atheorymustbe offered in this research. The writers determine this research asquantitativebecausetherehastobearesearchconductedinordertofindout the effect of location, public facilities and accessibility to propertyvalueintheareaofKotaBaruParahyangan.

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REFERENCES

J. Supranto.(2006).Pengukuran Tingkat Kepuasan Pelanggan: UntukMenaikkanPangsaPasar.Jakarta:RinekaCipta.

Jayadinata, Johara T. (1999). Tata Guna Tanah dalam PerencanaanPedesaan,PerkotaandanWilayah.Bandung:ITB.

LawNo.1of2011onHousingandResettlementAreasMashuri.(2008).PenelitianVerifikatif.FirstEdition.Yogyakarta:AndiSadono Sukirno. (2005). Mikro Ekonomi Teori Pengantar edisi ketiga.

Semarang:BadanPenerbitUniversitasDiponegoro.Sirojuzilam.(2006).TeoriLokasi.Medan:USUPress.Sugiyono,(2007),MetodePenelitianBisnis,Bandung:CVAlfabeta.Sugiyono. (2009). Metode Penelitian Bisnis (Pendekatan Kuantitatif,

Kualitatif,danR&D).Bandung:Alfabeta.Sugiyono.(2012).MemahamiPenelitianKualitatif.Bandung:ALFABETASugiyono. (2013).Metode Penelitian Pendidikan Pendekatan Kuantitatif,

Kualitatif,danR&D.Bandung:ALFABETATarigan,B.Y.,&J.N.Sinulingga,(2006).LaporanPraktekKerjaLapangandi

Pabrik Gula Sei Semayang PTPN II Sumatera Utara. FakultasPertanianUniversitasSumateraUtara,Medan.

UmiNarimawati.(2010).PenulisanKaryaIlmiah.Jakarta:PenerbitGenesis.

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ANALYSISOFSERVICEQUALITYANDPRODUCTDIVERSIFICATION

TOWARDPATIENTSATISFACTION

(CaseStudyatZihanMedicalCenter)

SitiRukoyah,StudentID.120820150003,rukoyahst@gmail.comPritaEvandari,StudentID.120820150053,Pritaevandari92@gmail.comMasterofManagementProgram,FacultyofEconomicsandBusiness

UniversitasPadjadjaran

Background

The free competition has supported the business world to evolve to bemorecomplexandcompetitive.Rapiddevelopmentinthebusinessworld,creates situations and conditions that are difficult to predict. Manycompanies engaged in the same field cause tougher competition in thebusinesssector. Intensecompetition in thebusinessworldrequireseveryemployer to be able to compete and survive against the competition.Therefore, employers should be smart to see opportunities as well asdetermine the right strategy to win this competition. The objective ofsetting up a business is to get as many customers to gainmore profits;therefore,employershavetobesmarttoseizeopportunities inachievingthisobjective.Nowadays,thereisawidevarietyofbusinessopportunities;oneofwhichisclinicormedicalcenter.Thepublicisnowquiteselectiveinmakingchoices,includinginchoosingaclinic for treatment.Many factorsareconsidered inchoosingaclinic,butonewaytoattractcustomersandwinthecompetitionistoprovideservicequality and product diversification in accordancewith the patient desire.Patient is the essence and also the key to the existence of a clinic.Therefore,patientshouldgetmoreattention. Inhealthservicesbusiness,patientswillcertainlychooseaclinicwithgoodservicequality.Patientswillalwaysrevisittheclinicwhentheyaresatisfied.Onthecontrary,theywillfindanothercliniciftheyaredissatisfied.ZihanMedicalCenterisanagencythatprovideshealthcareservicestothepublic inGarut.Althoughtheimageoftheclinic isalreadygood,butwithsomany clinics in the samearea, ZihanMedical Center is encouraged tocontinuallyimprovehealthcareservicesinaccordancetopatientdesireinordertogivesatisfactionandmaintainpatientloyaltytocontinueusingthe

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health care services at Zihan Medical Center. The level of patientsatisfaction in ZihanMedicalCenter is not good. It canbe seen from theBOR(BedOccupationRatio),whichin2014reachedanaverageof60.00%orbelowthestandardofMinistryofHealthof75-85%.PatientsatisfactionisagapbetweenservicesdesiredbypatientfromZihanMedical Center and services received by patient during a period oftreatment at the clinic. Although patient satisfaction at Zihan MedicalCenter is already good, but there are still many complaints that showdissatisfaction, evidenced by the complaints submitted directly to thehead of the clinic and other employees, such as unpunctual examinationschedule by the doctor. Beside that, product diversification aspect stillneedstobeassessedtoexaminetheextentofpatientstendencytoreusetheservicesprovidedbytheclinicatanytimewheninneed,thedesiretouse the services offered by other health care clinics, as well as thewillingnesstorecommendtheclinictofriendsandotherrelatives.Basedonresearchbackgroundandfactsfoundaswellasthingsthathavebeen described above, it becomes interesting to knowmore clearly anddeeply about customer satisfaction and influence. Therefore, weconducteda researchwitha title”AnalysisofServiceQualityandProductDiversification toward Patient Satisfaction (Case Study at Zihan MedicalCenter)”.

LiteratureReview

QualityDefinition

The word quality contains many definitions and meanings, as differentpeople will interpret it differently such as, conformity with therequirementsordemands,suitability foruseofcontinuous improvement,free from damage or defects, fulfilling the needs of patient or to doeverything to be happy. In the perspective of TQM (Total QualityManagement),qualityisviewedmorebroadly,whichnotonlyemphasizeson the aspect of results, but also includes the process, the environmentandhuman.ThisisclearlyshowninthedefinitionformulatedbyGoethandDavis as cited by Tjiptono (2000: 51) stating that quality is a dynamiccondition related to products, services, people, processes, andenvironmentsthatmeetorexceedexpectations.

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ServiceQuality

AccordingtoKotler(2002:83)service isanyactionoractivitythatcanbeofferedbyoneparty to another,which is essentially intangible anddoesnot lead any ownership. Its production can be linked or not linked to asingle physical product. Service is a producer behavior in order to meetconsumer needs and consumer desires in order to achieve consumersatisfaction itself. Kotler (2002: 83) says that such behavior can occurduring, before and after the occurrence of the transaction. In general, ahigh level of service will generate high satisfaction and repeat purchasemoreoften.Thewordqualitycontainsmanydefinitionsandmeanings,asdifferent people will interpret it differently, but those definitions havesomesimilaritiesasfollows:1. Quality covers efforts to meet or to exceed the expectations of

consumer.2. Quality includes products, services, people, processes and the

environment.3. Qualityisanever-changingcondition.From the definition of service quality, it can be concluded that servicequalityisanactivitycarriedoutbythecompanyinordertomeetconsumerexpectations. Service in thiscase isdefinedasaservicepresentedbythecompanyintheformofease,speed,relationships,abilitiesandhospitalitywhich are addressed through attitudes andbehaviors in giving service tocustomersatisfaction.Servicequalitycanbedeterminedbycomparingtheperceptions of consumer on service which they expect/want toward theattributes of the company’s service the actual service which theyreceive/get..The company considers consumers as king who should beservedwell,becauseittheywillprovidebenefitstothecompanyinordertosurvive.ServiceQualityDimension

Parasuraman, et al., (1988: 118) compose dimension that becomes thedeterminingfactorforservicequalityasfollows:1. Reliability, the ability to realize the promised service reliably and

accurately.2. Responsiveness, the willingness to help consumers by providing fast

serviceandprecise.3. Assurance, includes knowledge, skills, and courtesy and personal

kindnessandtheabilitytogaintrustanddesire.

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4. Empathy, includes keeping and provide individual attention orpersonallyfortheconsumerneeds.

5. Tangible, includes physical facilities, equipment and supplies, prices,andpersonalappearancesandwrittenmaterials.

ProductDefinition

Lupiyoadi and Hamdani (2008: 84) state that product is actually morereferring to the whole concept of the object or process that provides avalue to the consumer. Kotler and Armstrong (2008: 337) describe thatproduct isallthatcanbeofferedtothemarkettobeconsidered,owned,used,orconsumedtosatisfythedesiresorneedsoftheconsumer,whileaccordingtoKotlerandKeller(2009b:4), productisanythingthatcanbeofferedtothemarkettosatisfyadesireorneed,includingphysicalgoods,services, experiences, events, people, places, properties, organizations,information,andideas.Basedontheabovedefinition,itcanbeconcludedthatproductisameansofsatisfyinganeed,somethingthatcanbeofferedtothemarket,andcanmeet the needs and desires of consumers, including physical goods,services, experiences, events, people, places, properties, organizations,informationandideas.ProductDiversificationDefinition

Forcommonpeople,productdiversificationtendstobeinterpretedasthegoodsandservicesthathavenotbeencreatedorownedbythecompanybefore, and then designed with various modifications as a result oftechnological advances. Definition of diversification can be interpretedmorewidely, so it is not solely for the existing products but also for theaspects of design and innovation of the products or services that areconsidered new. According to Tjiptono (2008: 132), diversification is anattempt to find and develop new products or new markets, or both, inorder to pursue growth, increased sales, profitability, and flexibility.According to Ismanthono (2006: 65), product diversification is thecompany’seffortsto increasesalesthroughproductdiversification,eitherthroughthedevelopmentofnewproductsorexistingproducts.AccordingtoAssauri (2007:198),productdiversification ismadebyacompanyasaresultofthe implementationofproductdevelopment,whileoldproductseconomicallycanstillbemaintained.Inproductdiversification,companies

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aretryingto increasesalesbydevelopingnewproducts fornewmarkets,sothattherearevariouskindsofproductsmanufacturedbycompanies.Itcanbeconcludedthatproductdiversificationisapolicyinthecompany’sstrategy to meet the tastes and needs of consumers through productdiversificationinordertopursuegrowth,increasedsales,profitabilityandflexibility by creating new products or services without relying solely onone typeofproduct. Productdiversificationwillmake consumersbelievethat everything they need can be fulfilled by the employer. The morevariety of products offered to consumers, the greater the interest ofconsumerstobuytheproductsoffered.ProductDiversificationDimension

Kotler (1997: 70) describes three types of diversification that can bepresentedasfollows:1. Concentric Diversification Strategy, companies may look for new

products that have technology and marketing synergies with theexistingproduct lines,even though theproducts is are intended foradifferentconsumer.

2. Horizontal Diversification Strategy, companies may look for newproducts that can attract consumers at this time although thetechnologyisnotrelatedtotheexistingproductlines.

3. Conglomeration Diversification Strategy, companyiesmay seek a newbusiness that is completely unrelated to the technology, products ormarketsthatexisttoday.

ProductDiversificationPurpose

AccordingtoTjiptono(2008:132),productdiversificationisdevelopedforavarietyofpurposes,suchas:1. Enhance the growth when the market or existing products have

reachedthematuritystageintheProductLifeCycle(PLC).2. Maintainstability,byspreadingtheriskofprofitfluctuation.3. Increasedcredibilityinthecapitalmarket.

SatisfactionDefinition

KotlerandLupiyoadi(2001:158)expresssatisfactionastheleveloffeelingwhereby someone stated as the results of comparison toward theperformanceofproducts/services receivedandexpected.Tjiptono (2002:146) expresses that satisfaction is an evaluation of after-purchasewhere

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the selected alternatives at least provide the results (outcomes) that areequalorexceedconsumerexpectations,whiledissatisfactionariseswhenthe results do notmeet consumer expectations. Kotler and Keller (2009:43)expresssatisfactionasaperson’sfeelingofpleasureordisappointmentwhich resulted from comparing a product’s perceived performance oroutcome against his/her expectations. If the performance is above theperceptionofconsumer,thentheconsumerwillbeverysatisfied,andviceversa if the performance is under the perception of consumer, then theconsumerwillbedisappointed.PatientSatisfactionDefinition

Patientsatisfactionisapatient’sfeelingofpleasureduetothefulfillmentofexpectationsordesire inreceivinghealthcareservice(Indarjati,2001).Patient satisfaction is the perception and attitude of a patients towardnursingservices,andthecriteriafortheresultsofevaluationofthenursingservicequality(Risser,1975).SatisfactionDimension

Becauseconsumersatisfactionishighlydependentontheperceptionsandexpectationsofconsumer,thenthesuppliersofproductsneedtoknowthefactorsthat influence it.AccordingtoTjiptono(2012:162),therearefourfactors that influence the perceptions and expectations of consumer,namely:1. Passing of information from consumer to consumer by oral

communication (word of mouth communication), this is a potentialfactor that determines the expectation of consumer. For example, aconsumer will choose a company that is expected to provide servicewith high quality based on the recommendation of friends orneighbors.

2. Consumer expectations are very dependent on individualcharacteristicstofulfillpersonalneeds.

3. Past experience in using the service can also affect the level ofconsumerexpectations.

4. Communication with external parties (external communication) ofservice providers plays a key role in shaping consumer expectations.Basedon theexternal communication, the serviceproviders companycandelivermessagesdirectlyor indirectly toconsumers.Theexampleof influenceofexternalcommunication istheprice,wherethecostofservicehasaveryimportantroleinshapingconsumerexpectations.

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Methodology

TypeofResearch

This research was conducted at Zihan Medical Center, Garut. Thehypothesistestedinthisstudywastheeffectofservicequalityandproductdiversificationtowardpatientsatisfactionusingasurveymethod, theuseofprimarydataderivedfrominformationobtainedbyquestionnairesandtheuseof secondarydataderived fromstatisticaldataavailableat ZihanMedicalCenter,Garut.PopulationandSample

Populationistheobjectofresearch(Arikunto,2002:108).Populationasageneralization region consist of the objects/subjects that have certaincharacteristicsandhaveequalopportunitytobeselectedintothesample(HusainUmar,2002).ThepopulationinthisresearchisallpatientsatZihanMedicalCenter,Garut.Sample is a part of or the representative of the population studied(Arikunto, 2002: 109). Total population in this research is not known forcertain,thusthesampleisdeterminedusingaccidentalsamplingmethod.This method is a sampling technique based on chance, i.e. anyone whoincidentallymetwith researchers canbeused as a sample, if thepersonmeetsthecriteriaofbeingadatasource.According to Hair et al., (in Ferdinand, 2006), if the sample size in aresearchistoolarge,itwillcomplicatetheresearchersingetingasuitableresearch model, and it is recommended to use appropriate sample sizeranged from 100-200 respondents, in order to use the estimates. Underthese conditions, the samples will be determined by using a minimumsample calculation. The determination of minimum number of samplesaccording to Hair (in Ferdinand, 2006) is dependent on the number ofexistingindicatorsmultipliedbyfivetoten.TypesofDataCollection

Thedatausedinthisresearchareprimaryandsecondarydata.AccordingtoIndriantoroandSupomo(2005:125),primarydataarethosethatcomesdirectlyfromthedatasourcethatarecollectedspecificallyandhavedirectrelationshipwiththeproblemsstudied.Primarydatainthisstudyincludes

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the data from questionnaires that contains service quality, productdiversificationandpatientsatisfactionatZihanMedicalCenter,Garut. Secondary data are primary data that hasve been processed further andpresentedwell by primary data collectors or others (HusainUmar, 2000:130). Secondary data are obtained from Zihan Medical Center,Garut. Agoodresearchcanbedoneifthedatacollectedareobjectiveandrealistic.In this research, the data collection methods used is are questionnaire,observationandinterview.Themethodusedinthisresearchusesdescriptivemethodandverificationmethod. According to Sugiyono (2011: 9) descriptive research is theresearch conducted to determine the value of the variables examined,eitheroneormorevariables (independent)withoutmakingcomparisons,orlinkingonevariablewithanother. Verification method is a method used to test a hypothesis by usingstatisticaldatacalculations.AccordingtoSugiyono(2011:11),verificationmethod basically aims to test the validity of a hypothesis that isimplemented throughdata collection in the field.Verification research inthis study aims to determine the effect of service quality and productdiversificationtowardpatientsatisfaction.Thisresearchappliesvalidityandreliabilityteststomeasuretheextentofaccuracyandprecisionofthequestionsinthequestionnaire.Statistical regression analysis method is used to determine the effect ofservicequalityandproductdiversificationtowardpatientsatisfaction.Pearsoncorrelationisusedtodeterminetherelationshipofservicequalityandproductdiversificationtowardpatientsatisfaction.

Coefficientofdetermination isused todeterminehowmuch influenceofservicequalityandproductdiversificationtowardpatientsatisfaction.F-testhypothesistesting isusedtodeterminethepresenceorabsenceofinfluence of service quality and product diversification toward patientsatisfaction collectively, and t-test is used to determine the presence or

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absenceof influenceofservicequalityandproductdiversificationtowardpatientsatisfactionindividually.AlltestswereperformedusingSPSSsoftware.

References

Arif Rahman, et al. (2013). Multivariat regression analysis on quality

characteristics within paper product diversification. Vol.2, No.4,pg795-806.

Batbaatar, E., Dorjdagva, J., Luvsannyam, A., & Amenta, P. (2015).Conceptualisation of patient satisfaction: A systematic narrativeliterature review. Perspectives in Public Health, 135(5), 243-250.Retrieved fromhttp://search.proquest.com/docview/1716946838?accountid=48290

David,Sepang., Lotje,Kawet.,&Silvya,Mandey. (2016).Diversificationofproduct, price and service quality to the transvision users InManadoCity.JurnalBerkalaIlmiahEfisiensi,Vol.16,No.01,244-254.

Dorigan,G.H.,M.Sc,Guirardello,E.d.B.,PhD.,daSilva,D.,PhD,&McColl,E.,PhD.(2014).Validationofthebrazilianversionofthenewcastlesatisfaction with nursing scales: A partial least squares pathmodelingapproach.JournalofNursingMeasurement,22(3),451-460. Retrieved fromhttp://search.proquest.com/docview/1640765181?accountid=48290

Frendika, E. K., Nova, R., & Susi, T. W. (2015). Pengaruh diversifikasiproduk, kebijakan harga dan periklanan dalam meningkatkanvolume penjualan mie sedap [The influencee of productdiversification, pricing policy and advertising on increasing thesalesvolumeofmiesedap].JurnalManajemenBranchmark,ISSN:2407-8239,pg144-153.

Gunawan,.etal.(2015).Pengaruhmanfaatrelasional,penanganankeluhandan diversifikasi produk terhadap loyalitas nasabah PT AsuransiIntra Asia Semarang [The influence of relational benefits,complaint handling and product diversification on the loyalty of

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customers of PT Asuransi Intra Asia Semarang]. Journal ofManagementISSN:2442-4064,Februari2015.

Gurdogan, Eylem Pasli, PhD,M.S.N., B.S.N., Findik, Ummu Yildiz,PhD,M.S.N., B.S.N., & Arslan, B. K., R.N. (2015). Patients'perception of individualized care and satisfaction with nursingcarelevelsinturkey.InternationalJournalofCaringSciences,8(2),369-375. Retrieved fromhttp://search.proquest.com/docview/1685874207?accountid=48290

Mirnawati. (2014). Hubungan Komunikasi Interpersonal Perawat denganKepuasan Pasien Rawat Inap di Ruang Cempaka RSUD AWSamarinda Sjahranie [The Relationship between InterpersonalCommunicationofNurses and Inpatient Satisfaction at CempakaWardofRSUDAWSamarinda Sjahranie].eJournal Psikologi, Vol.2,No.2,pg100-114.

Wachidatuz, Z. I., Bambang, S., & Yeney, W. P. (2015). Pengaruhdiversifikasi produk dan advanced manufacturing technologyterhadap adopsi sistem activity based costing pada perusahaanmanufaktur [The influence of product diversification andadvancedmanufacturing technology on the adoption of activity-basedcostingsysteminmanufacturingcompanies].JurnalJIBEKA,Vol.9,No.2,Agustus(August)2015:60-67.

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PREVIOUSEVENTPHOTOTHE3rdINTERNATIONALJOINTSEMINAR&COMPANYVISITTORICOH

COMPANYLtdHumanizingCollaborationBetweenIndonesia&Japan

At Ricoh Future House

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Welcomed By Vice President Rikkyo Univeristy

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Itenary

MMFEBUNPADTOKYOOVERSEASPROGRAMITENARYOCTOBER2016

DAY1

TUESDAY04Oct2016:Jakarta–HongKong-Tokyo

DAY2WEDNESDAY05Feb2017ArriveinTokyo07.00am

08.30-12.30InternationalJointSeminar,RikkyoUniversity,IkebukuroCampus

(StudentsPapersPresentation)12.30-13.40

CampusTour,RikkyoUniversity,IkebukuroCampus13.40-14.00

(LunchBoxontheBus,providedbyTourOperator)14.00-end

CulturalAnalysis(AsakusaKannonTemple,NakamiseSouvenirArcade)

DAY3THURSDAY06Oct2016:Tokyo-Gotemba

07.00-DeparturefromEast21HoteltoRicohCompanyLTd,Gotemba10.00-17.00CompanyVisittoRicohEcoBusinessDevelopmentCentre,

RicohCompanyLtd,GotembaGotemba

DAY4FRIDAY07Oct2016:Tokyo

PopCultureAnalysisMarketingAnalysis

DAY5

SATURDAY08Oct2016:Tokyo-CaseStudy“Odaiba:TourismMarketingSite”

-ReturnedtoJakarta

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RUNDOWN COMPANY VISIT

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SessionChairsofthe4thInternationalJointSeminarRikkyoUniversityAndMmFebUnpadAKITA,TakahiroSpeciallyAppointedProfessorPh.D.inRegionalScience,UniversityofPennsylvania,1981Courses:QuantitativeMethodsforPolicyAnalysis,InequalityandPoverty,DevelopmentPlanningResearchinterests:AsianEconomicDevelopment,IncomeInequalityandPoverty,UrbanandRegionalEconomicDevelopment,EconomicGrowth,InternationalTradeMajorpublications:Akita,T.(2016).Educationalexpansionandtheroleofeducationin

expenditureinequalityinIndonesiasincethe1997financialcrisis.SocialIndicatorsResearch,forthcoming

Akita,T.,Kurniawan,P.A.,Miyata,S.(2011).StructuralchangesandregionalincomeinequalityinIndonesia:Abi-dimensionaldecompositionanalysis.AsianEconomicJournal,25:55-77.

Akita,T.(2003).DecomposingregionalincomeinequalityinChinaandIndonesiausingtwo-stagenestedTheildecompositionmethod.AnnalsofRegionalScience,37:55-77.

Akita,T.,Lukman,R.A.(1995).InterregionalinequalitiesinIndonesia:Asectoraldecompositionanalysisfor1975-92.BulletinofIndonesianEconomicStudies,31:61-81.

Akita,T.,(1994).InterregionalinterdependenceandregionaleconomicgrowthinJapan:Aninput-outputanalysis.InternationalRegionalScienceReview,16:231-248.

KATAOKA,MitsuhikoSpeciallyAppointedProfessorDoctorofArts,NagoyaUniversity,2004Courses:StatisticsforEconomicsandManagement,DevelopmentEconomics,UrbanandRegionalEconomics,AsianEconomicDevelopmentResearchInterests:DevelopmentEconomics,RegionalEconomics,IncomeInequality,PostwarJapaneseEconomicDevelopment,RegionalGrowthandFactorEndowment

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Majorpublications:Kataoka,M.(2014).Trendsintheregionalallocationofpublicinvestment

inthepost-bubbleJapaneseeconomy.LettersinSpatialandResourceSciences,7:205-212.

Kataoka,M.(2013).CapitalstockestimatesbyprovinceandinterprovincialdistributioninIndonesia,AsianEconomicJournal,27(4):409-428.

Kataoka,M.(2012).EconomicgrowthandinterregionalresourceallocationinIndonesia,StudiesinRegionalScience.42(4):911-920.

Kataoka,M.(2011).Interregionalproductivitydifferentials:ashift-sharedecompositionanalysisanditsapplicationtopost-warJapan.LettersinSpatialandResourceSciences,4(1):1-7.2011.

Kataoka,M.,(2008).FactorsofinterregionalincomeinequalityinpostwarJapan:Theildecompositionanalysisandgapaccountinganalysis.ReviewofUrbanandRegionalDevelopmentStudies,20(2):135-150.

YAMADA,KyoheiSpeciallyAppointedAssociateProfessorPh.D.inPoliticalScience,YaleUniversity,2013Courses:ResearchMethodology,PublicAdministration,LocalGovernmentandPublicServices,JapanesePoliticsResearchInterests:LocalGovernmentandIntergovernmentalRelations,JapanesePoliticsandGovernment,Survey,RandomizedExperimentMajorpublications:Yamada,K.(2016).Crucialdecisionsbysmalltownsandvillages:Whydid

somemunicipalitieschoosetomergebutothersdidnotduringthenationwidewaveofmunicipalmergersinJapan?InternationalJournalofPublicAdministration,39(6):480-491.

Rosenbluth,F.M.,Yamada,K.(2015).Electoraladaptationandbusinesscyclesinpost1994Japan.AsianSurvey,55(6):1071-1092.

Horiuchi,Y.,Saito,J.,Yamada,K.(2015).Removingboundaries,losingconnections:ElectoralconsequencesoflocalgovernmentreforminJapan.JournalofEastAsianStudies,15(1):99-125.

Yamada,K.(2011).GeographicincomedistributionandtheLDP.TheJournalofSocialScience(ShakaiKagakuKenkyu),62(1):131-149.

Saito,J.,Yamada,K.(2011).LocalgovernmentinJapan.InAlisaGaunder(ed.)HandbookofJapanesePolitics.London:Routledge,103-114

391

Outline of the Marketing Analysis Report

392

Outline of the Cross-Cultural Analysis Report

393

ACKNOWLEDGEMENT

Wewouldliketothankforthegeneroussupportfrom:MinistryofNationalDevelopmentPlanning,RepublicofIndonesia,

MinisterExpertStaffforEconomicSynergyandFinancingMinisterExpertStaffforInter-InstitutionRelationMinisterExpertStaffforMappingandTerritorial

RicohCompanyLtd,JapanZenjiMiura

CEO(RepresentativeDirectors)NobuoInaba,YohzohMatsuura,YoshinoriYamashita,KunihikoSatoh,

AkiraOyamaDirectors

MS.KawasakiRicohCompanyLtdJapan,atGotemba

RikkyoUniversity(RU),JapanProf.NoriyoshiShiraishi,SeniorVicePresidentProf.TakahiraAkita,

SpeciallyAppointedProfessor,RikkyoUniversityProf.MitsuhikoKataoka,

SpeciallyAppointedProfessor,RikkyoUniversityProf.KyoheiYamada

SpeciallyAppointedProfessor,RikkyoUniversityMr.YasutoshiIto,

Manager,CenterforGlobalHRDMs.MitsukoNakajima,CenterforGlobalHRD

MrUehara

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UniversitasPadjadjaran(UNPAD),IndonesiaProf.Dr.med.TriHanggonoAchmad,dr.,

RectorDr.ArryBainus,MA

ViceRectorforLearningandStudentAffairsAriefSjamsulaksanKartasasmita,dr.,SpM(K),M.H.,PhDViceRectorforPlanning,FinanceandInformationSystem

Dr.KeriLestari,S.Si.,M.Si.,Apt.ViceRectorforResearch-CommunityService,Cooperation,Innovation

Dr.SigidSuseno,SH.,M.HumViceRectorforGovernanceandResources

Dr.NuryEffendi,SE.,MA.,

Dean,FacultyofEconomicsandBusiness(FEB)MohammadFahmi,SE,MT,Ph.D

ViceDeanIforAcademic,StudentAffairs,InovationandCooperationYudiAzis,SE.,S.S.,S.Sos.,MT.,Ph.D.,

ViceDeanIIforPlanning,InformationSystem,GovernanceandResources

Prof.Dr.ErnieTisnawatiSule,SE,MSHead,DepartmentofManagementandBusiness

MeryCitraSondary,SE,MSSecretary,DepartmentofManagementandBusiness

PopyRufaidah,SE.,MBA.,Ph.D.,

Head,MasterofManagementProgramDr.RinaNovianty,SE,MS

SecretaryforAcademic,MMFEBUnpad

ProfessorsofMMFEBUnpad,IndonesiaProf.SurachmanSumawihardja,

Prof.YuyunWirasasmita,Prof.FaisalAfiff,

Prof.MamanKusman,Prof.TatiJoesron,Prof.Sucherly,

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Prof.RidadAgoes,Prof.DwiKartiniYahya,Spec.Lic

Prof.Dr.H.YuyusSuryanaSudarma,SE.,MS.,Prof.ErnieTisnawatiSule,Prof.ArmidaAlisyahbana,

Prof.CissyR.S.P.Kartasasmita,Sp.A.(K),M.ScProf.InaPrimianaSagir,

Prof.Nurpilihan

AllLecturersofFEBUnpad

AcademicsStaffatFEBUnpad

AcademicsStaffatMMFEBUnpad

AllstudentsandalumnioftheMMFEBUnpad

EditorsoftheStudents’PapersPopyRufaidah&YudiAzis

LayoutoftheProceeding

FaniWidodo