Jurnal Dinamika Manajemen, 7 (1) 2016, 45-55
http://jdm.unnes.ac.id
FACTORS AFFECTING CUSTOMER LOYALTY OF FITNESS CENTERS: AN
EMPIRICAL STUDY
Livia Vania Suwono, Sabrina Oktaria Sihombing
Business School Pelita Harapan University, Tangerang, Indonesia
Info Article
History Article:
Received Juny 2015
Approved September 2015
Published March 2016
Keywords:
loyalty; satisfaction; switching
cost; customer value; physical
environment.
Abstract
Awareness of healthy lifestyle in society is increasing day by day. Therefore, the fitness centers more motivated to focus on these business opportunities. Hence, it is
important for companies to understand how to satisfy consumers to obtain consumer
loyalty. Main variables were applied to predict customer loyalties areswitching cost,
customer value, physical environment, and customer satisfaction. Data was collected
through questionnaires distribution to students at private university in Tangerang.
Data then was analyzed to by applying multipleregressionswith SPSS software. The
results showed that there are three hypotheses are supported. The hypothesis is the
relationship between switching cost and customer value, the relationship between
customer value and customer satisfaction, and the relationship between customer
satisfaction and customer loyalty. There is a hypothesis that is not supported, namely
the relationship between the physical environment and customer satisfaction. This
study also provides a discussion and offers direction for further research.
FAKTOR YANG MEMPENGARUHI LOYALITAS NASABAH PUSAT FITNESS: STUDI EMPIRIS
Abstrak
Kesadaran akan hidup sehat dalam masyarakat semakin meningkat. Oleh karenaitu,
perusahaan-perusahaan pusat kebugaran termotivasi untuk focus pada peluang bisnis ini.
Dengan demikian, pemahaman akan kepuasan konsumen yang dapat menjadikan konsumen semakin loyal adalah penting bagi perusahaan. Penelitian ini focus pada variable
biaya perpindahan, nilai yang diterima konsumen, lingkungan fisik, dan kepuasan konsumen dalam memprediksi loyalitas konsumen. Data dikumpulkan melalui penyebaran
kuesioner pada mahasiswa di sebuah universitas swasta. Data kemudian dianalisis dengan menggunakan regresi berganda. Hasil penelitian menunjukkan bahwa terdapat tiga
hipotesis yang didukung. Hipotesis tersebut adalah hubungan antara biaya perpindahan
dan nilai yang diterima konsumen, hubungan antara nilai yang diterima konsumen dan
kepuasan konsumen, dan hubungan antara kepuasan konsumen dan loyalitas konsumen.
Terdapat satu hipotesis yang tidak didukung, yaitu hubungan antara lingkungan fisik dan
kepuasan konsumen. Penelitian ini menyampaikan pembahasan dan arah atas penelitian
selanjutnya.
JEL Classification: M3, M31
Correspondence Address
M.H Thamrin Boulevard, Kec. Tangerang, Banten
Email: sabrinasihombing@gmail.com
ISSN
2086-0668 (print)
2337-5434 (online)
Jurnal Dinamika Manajemen, 7 (1) 2016, 45-55
Factors affecting switching cost are varies, depending on the type of product, business, and
consumers (Yang & Peterson, 2004). Especially
for sports business, switching costis required to
avoid customer move to another competitor.
There are three types of switching cost
as a transaction costs, learning costs, and contractual costs (Burnham et al., 2003). Transaction costs are costs that happen when starting
a new product/ service and occasionally also
include the required to terminate an existing
relationship. Learning costs represent the effort
from consumer to achieve a familiarity of using
an item for consumption but which cannot be
transferable to additional brands of the same
products. Contractual costs are directly firminduced in the set to punish the switching by
customers, such as repeat-purchase, discounts
or rewards (Ricki & Raharso, 2008).
Switching costs make changing service
providers more expensive and difficult and create dependence from the customer on the service provider (Morgan & Hunt, 1994; Lai et al.,
2011). A highswitching costs makes customer
may be reluctant tomove to another providers
and chooses to remain with the existing provider, even if they were not satisfied, rather than
change to other providers (Molina-Castillo et
al., 2012). However, if the switching costs are
low, the customerwillchoose to turn toother
providers (Jones et al., 2007).
INTRODUCTION
Nowadays, awareness of healthy lifestyle in Indonesia continues to increase.One way
to have healthy lifestyle is having routine exercise. Therefore, due to the large fitness center
opened, the competition was not inevitable. It
makes fitness center aggressively try to get the
loyalty from customer.In order to strengthen
the competitiveness of the company, the central
idea of the marketing is developing and maintaining long lasting relationships with customers (Nguyen etal., 2013). Many other studies
denote that customers loyalty will generatedif
customer’s needs fulfilled (Mittal & Kamakura,
2001) and obtain the superior values from what
they spend(Tsai et al.,2010).
Previous studies have been conducted
to examine the effect of several variables
such as switching cost (Jain & Kumar, 2015;
Rahman&Kamarulzaman, 2012; Tsai et al., 2010);
customer value (Jain & Kumar, 2015; Johan et al.,
2014; Sugiati et al., 2013; Auka, 2012; Tsai et al.,
2010); customer satisfaction (Hijjah & Ardiansari, 2015; Sumadi & Soliha, 2015; Jain & Kumar,
2015; Johan et al., 2014; Sugiati et al., 2013; Auka,
2012; Rahman&Kamarulzaman, 2012; Tsai et al.,
2010; Ryu & Han, 2010)on customer loyalty.However, there is limited research have examined that
customer loyalty can be influenced by the physical
environment (Ryu& Han, 2010).
Consumers are always in search of better alternatives to satisfy their need better (Hossain et al.,
2012). Most sports organizations must understand
that company cannot keep customers long lasting
just by luck, the company has learned from sporting contribution, the key to keep customers and
to make benefit is continuous effort (Salamat et al.,
2013). The purpose of the study to show that physical environment is one of the important factors in
the fitness center that can influence customer satisfaction and customer loyalty.
Customer Value
Customer value is defined as the ratio between perceived benefits and perceived sacrifices
(Payne & Holt, 2001). Customer’s sacrifices include monetary payments and non-monetary
sacrifices such as time consumption, effort consumption, and stress experienced by consumers
(Jain &Kumar, 2015). The conceptual suggest
that customers have a “give and get” mentality
when it comes to perception of customer perceived value (Auka, 2012). Because customer value very related to the outcome of the evaluation
performed by customer on the product, benefit
from the service, and its cost (Kanten & Yaslioglu, 2012).
Hypothesis Development
Switching costs is defined as the one time
cost associated with these customers who is
switching from one product or service to another (Nakamura, 2010; Burnham et al., 2003).
46
Livia Vania Suwono & Sabrina Oktaria Sihombing / Factors Affecting Customer Loyalty...
tomer satisfaction is an expression of pleasure
or disappointed resulting from a comparison
between pre-consumption expectation and
post-consumption perception of product or
service function (Tsai et al., 2010).
Competition between companies tight,
because previously they used product and sales
philosophy has been switched to the marketing
philosophy which led the company to strive to
stand out in the competition (Kotler, 2000).
Therefore, discover and priority customer satisfaction is the important key to get customer loyalty. The higher of customer satisfaction is the
higher of product or service usage consumption.
Understands customer’s value can attract
and retain customers, andthat will become the
significant factors in the success of service providers (Mathuramaytha & Ussahawanitchakit,
2008). The concept of customer value is central
to the success because customer value is believed to be a determinant of consumer decisionmaking, although the concept of customer value must be properly addressed in practice to
influence the decision making process (Day,
2002). Better customer value as compared to
what the competitors can deliver will make customer feel satisfied (Sugiati et al., 2013).To be
superior compared to competitors, customer
value is the main instrument of competitive
strategies for the company (Brennan &Henneberg, 2008; Fortuin & Omta, 2007). Competition among enterprises increasingly dynamic,
value criteria adoptedby the customerare also in
creasing lyunpre dictable. Therefore, it is important to know how far customer value cansatisfy
the mand make them to beloyal(Sugiati et al.,
2013).
Customer Loyalty
Increased competition in the service industryhas caused companies to be deeply concerned in attracting potential customers and
trying to maintain long-term relationship with
their current customers (Jamil&Aryaty, 2010).
Furthermore, the companyshould be moresensitive totheir relationshipwith thecustomer, and
especially for their existing customers. Buid and
maintain customer loyalty is one important way
to win the competition.
Customer loyalty is a commitment from
the customer to a specific brand, product, or
service firm despite the availability of alternate
options (Shankar et al., 2003). The customer
remains loyal to a company as long as they feel
that the company can give them a better service
or product than other company (Bose & Rao,
2011). There are two dimensional of loyalty,
behavioral loyalty and attitudinal or emotional
loyalty.
Behavioral loyalty is customers have loyalty to the company but have no emotional bond
with the brand or company like emotionally loyal customers do,on the other hand,emotional
loyalty have much stronger bond and longer
lasting than behavioral loyalty (Kuusik, 2007).
Hofmeyr and Rice (2000) suggests that customers can divide into loyal (behavioral) or committed (emotional).
Even though the loyalty is difficult to achieved, but the benefits from customer loyalty still
Customer Satisfaction
Understand what makes consumers satisfied or dissatisfied is important thing to remain
successful in the service industries (Ryu & Han,
2010; Angelova & Zekiri, 2011;). Customer satisfaction is defined as the contentment of the
customer respect to their purchasing experience
with a given service firm (Anderson & Srinivasan, 2003). Customer will satisfy if the products
or services outcome is over their expectations
and they will not satisfy if the products or services outcome is below their expectations (Ariff
et al., 2012).
Customer satisfaction can determine
how successful the company in build relationship with customer, because customer satisfaction represents the difference between what
customers actually expect to get and the actual
service performance get beyond their expectations (Johan et al., 2014).Therefore, customer
satisfaction is closely related to consumer’ expectation andexperience with the product and
service (Johan et al., 2014). Accordingly, cus47
Jurnal Dinamika Manajemen, 7 (1) 2016, 45-55
exceed the effort (Wood & Herdeen, 2007). A
customer with greater loyalty will have higher
degree of price tolerance and a higher willingness
to make a recommendation or positive word-ofmouth (Tsai et al., 2010). Customer loyalty variable can be measured by using commitment,
repurchase, improving the amount of purchase
and word-of-mouth or informing positive things
to others (Sugiati et al., 2013).
the value of the customerhas not been reached, customer will need time to think whether
they would move to another provider or not.
Hence, we can keep our customer through the
high switching cost even though their value
can not be fulfilled.
H1: There is a significant relationship between
switching cost and customer value.
Customer Value and Customer Satisfaction
The overall objective of creating customer value and strive to provide it better than
competitor sistoachieve and maintain customer satisfaction (Schiffman & Kanuk, 2004).
Consumers always choose products or services
thatcanmeetwhat they need. Specifically, customer will choose products or services based on
theirperception ofcustomer valueandwhichcan
besatisfyingtheir needs (Kotler& Armstrong,
2010). The higher level of perceived value leads
to a higher level of customer satisfaction, previous studies claim that customer value significantly affect customer satisfaction (Khan, 2013;
Sugiati et al., 2013; Ariff et al., 2012; Anwar &
Gulzar, 2011; Tsai et al., 2010; Milfelner, 2009;
Yang & Peterson, 2004; Spiteri & Dion, 2004).
H2: There is a significant relationship between
customer value and customer satisfaction.
Physical Environment
Physical environment is the one of the
most influential factors leading to customer
pleasure in sport clubs or fitness center (Deniz,
2006). Physical environmentis an element that
contributes to service quality that comes with
other elements (Bradley, 1999). Physical infrastructure progressin thesportisa majorfactorfor
the development of the physical environment
(Bester, 2012). Physical environment of fitness
center include such as modernity and completeness the sports equipment’s, cleanliness of the
sport venue and changing room, smell and temperature of the venues.
Sports lovers always expect the convenience and comfort of exercising at a high level,
it is important for the sport manager to plan,
build, and renovate physical environment with
in a period of rapid (Bester, 2012). It indicates,
poor performance of the physical environment
can be the negative effect for the company’s economic situation (Bester, 2012). Customers will
reluctant to come and the presence of the customer will be reduced if fitness center cannot manage the performance (Bester, 2012). Physical
environment and design of visual identity aims
to allow people to distinguish the difference of
the company from the competitors by the difference (Melewar et al., 2005).
Physical Environment and Customer Satisfaction
Physical environment are important in
the creation of customer satisfaction. When customer feel satisfied, it will support the customer
to determine the choice for the fitness center.
Hence, important for managers to know what
is desired by the customer and which are not.
High maintenance of the physical environment
should always be in the planning, so customer
satisfaction is maintained and they also can recommend the fitness center to friends and relatives. Some researchers have said that physical
environment have significant effect to customer
satisfaction (Miles et al., 2012; Jen et al., 2013)
H3: There is a significant relationship between
physical environment and customer satisfaction.
Switching Cost and Customer Value
Switching cost is not just financial costs,
but it also includes psychological cost when
someone wants to change provider (Kim et
al., 2003). The psychological cost associated
with feelings of fear and securitywhen someone wants to try new brands (Sharma, 2003).
The existence of dedicated switching cost if
48
Livia Vania Suwono & Sabrina Oktaria Sihombing / Factors Affecting Customer Loyalty...
by students in fitness center service. Celebrity
Fitness is one of the famous fitness centers in
Indonesia. Design sampling for thisstudyisjudgmental sampling with twomain criterias: (1)
students in XYZ University, and (2)they have
experience in using servicesof fitness centersin
the Celebrity Fitness.
There aretwo stagesin the data collection in this research. The firststageisa pilottest
conductedwith aspreadof 50 questionnaires to
respondents. The pilottest was conducted to
test whether the question has been clear lyunderstood bythe respondents before the questionnaire distribute dinlarger amount (Sekaran
& Bougie, 2010; Churchill, 2004). Then the secondstage ofdata collectionwill becarried outbya
larger amount. A questionnaire distributed to 200
respondents by applying drop-off and pick-up
method. Out of 200 questionnaires distributed,
150 questionnaires can be used for further analysis. Fifty other questionnaires cannot be used
becaise of incomplete answer or respondents do
have experiences in fitness center but not specifically in Celebrity Fitness.The usable response rate
for this research is 75%.
Customer Satisfaction and Customer Loyalty
Customer satisfaction is important key
for a long-term relationship between company
and customer (Anderson & Srinivasan, 2003).
Numerous studies have shownthat themost
effective wayto getcustomers loyalty is to delightthose (Lee et al., 2001). Customer satisfactionhasa positive effecton customer loyalty
invarious productor services (Spiteri & Dion,
2004; Yang & Peterson, 2004; Gustafsson et al.,
2005; Akbar &Parvez, 2009; Ryu & Han, 2010;
Tsai et al., 2010; Auka, 2012, Ariff et al., 2012;
Sugiati et al., 2013; Johan et al., 2014; Sumadi
& Soliha, 2015; Hijjah & Ardiansari, 2015) A
satisfied customer willbuy more as the company introduces new productsand upgrade existing products, talk about the positivity of the
product, pay less attention toother brands, less
price sensitive, gives advicetocompanies about
the product, andthe cost islowerthan thecustomernew (Kotler, 2000).
H4: There is a significant relationship between
customer satisfaction and customer loyalty.
METHOD
Measurement Scale
There are five variable sin this study,
which is switching cost, customer value, physical environment, customer satisfaction, and
customer loyalty. Eachvariable has fouritems
and each item measured byfive points Like
rtscale.“Strongly disagree” to “strongly agree”an
option for respondent stoans were very statement. Switching Cost. Four items will be used
to measure switching cost. Those items such as
Sampling and Data Collection
The target population of this study isstudent from private university located in Tangerang, Indonesia.This study uses Celebrity Fitnessas research objects. Research object was
chosenby conducting a surveyto30 studentsin
order to know frequently fitness center that attended by students. The result shows thatCelebrityFitness as a place that frequently attended
H2
H
Switching
Cost
H4
Customer
Satisfaction
Customer
Value
H3
Physical
Environment
Figure 1. Theoretical Framework
49
Customer
Loyalty
Jurnal Dinamika Manajemen, 7 (1) 2016, 45-55
follows: (1) It would take a lot of time changing
another fitness center, (2) It would take a lot
of effort changing another fitness center, (3) It
costs me too much to switch to another fitness
center, (4) In general it would not be a hassle
switching to another fitness center. The items
were adapted from Jones et al. (2000).
Customer Value. Four items will be used
to assess customer value. Those items are as follow: (1) Compared to alternative fitness center,
Celebrity Fitness offers attractive product/ service costs, (2) Compared to alternative fitness
center, Celebrity Fitness charges me fairly for
similar products/services, (3) Compared to alternative fitness center, Celebrity Fitnesscannot
provides more free services, and (4) Comparing
what I pay to what I might get from other competitive fitness center, I think Celebrity Fitness
provided me with good value. All items were
adapted from Levesque and McDougall (1996).
Physical Environment. Physical environment will be measured by using four items as
follows: (1) There is modern equipment in Celebrity Fitness, (2) Equipment is well arranged
in the Celebrity Fitness, (3) Exercise room is
clean, and (4) Celebrity Fitness’ dressing room
is comfortable. Those items were adapted from
Salamat et al. (2013).
Customer Satisfaction. Customer satisfaction will be assessed through four items
as follows: (1) Celebrity Fitness offers me
exactly what I need, (2) Celebrity Fitness totally meets my expectations, (3) Altogether,
I am satisfied with the services of Celebrity
Fitness, and (4) I have made bad experiences
with Celebrity Fitness. All items are used for
measured was adapted from Alshibly (2014).
Customer Loyalty. Customer loyalty will
be measured through four items as follows: (1)
I say positive things about Celebrity Fitness to
other people, (2) I would recommend Celebrity
Fitness to those who seek my advice about such
matters, (3) I would encourage friends and relatives to use Celebrity Fitness, and (4) I would
not post positive messages about Celebrity Fitness on some Internet message board. These
items were adapted from Mols (1998).
Data Analysis
Before data was analyzed by using multiple regressions with the Windows versions
of Statistical Package for Social Sciences
(SPSS 22.0), an assessment of reliabity and
validity of measures was performed. Reliability was measured by applying the Cronbach’s
alpha test with the cut-off point 0.7 (Hairet
al., 2006).Validity was established through
convergent validity. Specifically, every item
loaded significantly on its underlying latent
factor providing evidence of convergent validity.
RESULT AND DISCUSSION
Table 1. Rotated component matrix
1
CV1
CV2
CS1
CS3
CL2
CL3
SC1
SC2
PE3
PE4
.863
.900
2
Component
3
4
.795
.814
.899
.661
5
.879
.619
.838
.849
Source: research data (2015)
Legend: CV = customer value, CS = customer
satisfaction, CL = customer loyalty, SC =
switching cost, PE = physical environment
Cronbach alpha were applied in this research to assess reliability of the measures. The results show that Cronbach’s alpha of variableswas
ranged from 0.515 to 0.728. Specifically, Cronbach alpharesultsforthe variables switchingcost
0.728, customer valueis0.556, physical environment 0.660, customer satisfaction 0.636, and
customer loyalty 0.515. The validity of thetest
resultscan be seenin Table1, whereineach of
the variablesgatheredatone of the components,
which means convergent validity was achieved.
After reliability and validity testing, data
then was examined by using multipleregression.
Research results show that there is a significant
50
Livia Vania Suwono & Sabrina Oktaria Sihombing / Factors Affecting Customer Loyalty...
there isalsotime, effort, and psychology.Therefore, ifthe fitness center wants to achievethe satisfactionfrom the customers, the fitness centershould forma good strategy. From there, thatthe
expectationsofcustomers aremet andachieved.
Previous studies confirm significant and positive relationship between customer value and
customer satisfaction (e.g., Yang & Peterson,
2004; Spiteri& Dion, 2004; Milfelner, 2009;
Tsai et al., 2010; Anwar &Gulzar, 2011; Ariff et
al., 2012;Khan, 2013; Sugiati et al., 2013).
The result shows that the research hypothesis on the relationship between physical
environment and customer satisfaction is not
supported. It can be explained by several factors. For instance, good physical environment
is not always necessarily able to drive customer
satisfaction. This is because customer satisfaction criteria can be established not only from physical environment but also service quality. High
cost in order to get a good physical environment
from the fitness center can also reduce customer
satisfaction. Then for members of the fitness
center are still an amateur, will need a companion or instructor. Completeness of the equipment but not accompanied by instructions on
the direction of the user or companion will make
consumers can not enjoy the sportequipment’s.
In accordance with the expectations, that
customer satisfaction will have a significant effect on customer loyalty. Satisfied customers will
surely drive into consumer loyalty. Consumers
who feel their needs are met then it would have
a chance that customer will continue to re-purchase or will continue using services from the
same provider. It is important to meet customer
satisfaction, because the company can maintain
relationship between the variables of switching
cost with customer value (Table 2a).The results
also show that there is a significant relationship
between the variables customer value with customer satisfaction (Table 2b). However, the
third hypothesis about the relationship between
physical environment to customer satisfaction was not supported (Table 2b). Finally, the
results show that the fourth hypothesis stating
there is asignificant relationship between variable customersatisfactionswith customer loyalty
was supported (Table 2c).
The first hypothesisis the relationship
between the variablesof switching costsand
customerv alue. Resultsof the relationship of
these variablesdid in factcorrespond to that all
egedsignificant. Thismeans thatthe switching
costhas adirectinteraction with the value of
the customerto thefitness center, especiallythe
Celebrity Fitness. Customers will think ofhow
muchswitching cost into consideration in determiningt heir expectations with the services that
the customer will have. This becomes important for fitness centerin shaping theswitching
cost;because it turns out the establishment of
customer valueis strongly influencedby theswitching cost of the company itself.
The second hypothesisisthat the relationship between customer valueand customer
satisfaction. This hypothesis is also supported.
Customer satisfaction is strongly influenced by
customer value. Customerswill besatisfied if
theservices receivedare consideredin accordance with whathas beensacrificed. In addition, customers also have certain expectations with the
servicesthat will be received, because customers
assume that customer gave upnot onlycosts,
Table 2a. Coefficients of Hypothesis1
Coefficient
Unstandardized
Standardized
Coefficients
Coefficeint
B
Std.
Error
Beta
Model
1
(Constant)
6,671
,412
Switching Cost
,164
,055
,237
Dependent Variable: Customer value
51
T
16,190
2,974
Sig.
,000
,003
Jurnal Dinamika Manajemen, 7 (1) 2016, 45-55
Table 2b. Coefficients Hypothesis 2 and 3
Coefficient
Unstandardized
Standardized
Coefficients
Coefficeint
B
Std. Error
Beta
Model
1
(Constant)
4,635
1,095
Customer Value
,371
,078
,367
Physical Enviroment
,077
,111
,054
Dependent Variable: Customer Satisfaction
T
4,222
4,766
,694
Sig.
,000
,000
,4893
T
10,972
3,271
Sig.
,000
,001
Table 2c. Coefficients Hypothesis 4
Coefficient
Unstandardized
Standardized
Coefficients
Coefficeint
B
Std. Error
Beta
Model
1
(Constant)
6,146
,560
Customer Satisfaction
,220
,067
,360
Dependent Variable: Customer Loyalty
vironment, and well-arranged equipment, then
customers may feel dissatisfaction. Furthermore, good physical environment also should combine with enough instructors.
This study has two main limitations. The
first limitation is that this study applies non-probability sampling. In other words, it can be stated that the results of this study can not be generalized to the population. Secondly, the object
of this study only applies one fitness center, that
is, Celebrity Fitness. Thus, it can not be generalized to other customers of other fitness center.
As suggestion for future research, one could test
the model presented here in different fitness
center or other services and check for possible
differences
long-term relationships with their customers.
Many competitorswill also makemorechoice for
customer as well, and thenthe company should
be more concerned with maintaining relationships with customers fromall aspects. Previous
research shows the significant and positive relationship customer satisfaction and customer
loyalty (Hijjah &Ardiansari, 2015; Sumadi &
Soliha, 2015; Johan et al., 2014; Sugiati et al.,
2013; Ariff et al., 2012; Auka, 2012, Tsai et al.,
2010; Ryu & Han, 2010; Akbar & Parvez, 2009;
Yang & Peterson, 2004; Spiteri& Dion, 2004).
CONCLUSION AND RECOMMENDATION
This study was conducted to predict the
impact of switching cost, customer value, physical environment, customer satisfaction with
customer loyalty. However, the results indicate
that only the relationship between physical environment and customer satisfaction was not
supported.The result of this research provides
insights towards the physical environment of
Celebrity Fitness. Physical environment of fitness centers is important. However, when the
physical environment is not meet customers’ expectations such as modern equipment, clean en-
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