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PROCEEDING

THE lOth INTERNATIONAL ANNUAL SYMPOSIUM ON MANAGEMENT

CHALLENGES AND OPPORTUNITIES OF THE LEADING EDGE IN WORTD CLASS SUPPLY CHAIN MANAGEMENT

Bali, March 16rh,20L3

Department Of Management Faculty of Business and Economics Universitas Surbaya

Proceeding

The 10th UBAYA International Annual Symposium on Management CHALLENGES AND OPPORTUNITIES OF THE LEADING EDGE IN WORLD CLASS SIJPPLY CHAIN MANAGEMENT Editors:

Werner R. Murhadi, Dr Prita A1u, MM Reviewers: Candra S. Chayadi, Ph.D. (School of Business, Eastern Illinois

University) Dudy Anandya, Dr (Universitas Surabaya) Joniarto Parung, Ph.D, Prof. (Universitas Surabaya)

Ning Gao, Ph.D. (Manchester Business School) Wahyu Soedarmono, Ph.D. (Research Analyst, The World Bank, Jakarla)

Yuanto Kusnadi, Ph.D. (City of Hongkong University) Published by: Department of Management, faculty of Business & Economics

Universitas Surabaya Jl. Raya Kalirungkut Surabaya, Indonesia 60293

Phone : +62-31-2981139

Fax

ISBN:

: +62-31-2981239 91 B-97

9-99365-7 -8

Copyright O 2013 Department of Management, faculty of Business & Economics, Universitas Surabaya

1OtI,

ENNUAI' SYMP UBAYA INTENNETIONAT'

FORE,WORD

for

10th

Th" coinpilation of- papers submitted This oroceeding is a's,-p,irrrrn on Nlanagement rlnsltnrr condtrcted Annual lnternational

by

Faculty if the Department of H't*n'-nt'tr"nt' svmposium is Challenges and Universitas Surabaya #tl;#il:1" "iir" Supply Chain of the L""Ji'g Edge in rVorid Class Business and Economlcs'

Opportunities N'Ianagement.

to In this opportunity, we would like

share our gratefr-rl

to the institutions

il;',i ; 0...,, : l:^:: I,i i,: j, nl! #[. ":.::;[.,ii tiffi 'ilI: tJ:lll:lH, und highlr chalrensing arrd (Nationalandabroad)*t'o'"ntltheirlecturerorresearchertooursyinposlum'

?L:l=;:"

opporiuniriet

repre\cnts, 'n ''"'-'ing ol the most signiiicant rrer oI re:clrch rtnd prucl'icc One is that individual business no

manag:.Tent paradigm shitts ot modern business

iongercompeteassolelyautono]noLlsentities.butratherasstipplychains. .*, oi.,ernetwork competition' In this Business

-un.=.n.ni';'i, #;.;;',r-r.

emergingcompetrti"ee*'i.o","*lther-rltimatesuccessofthesinglebusiness the company's intricate to depend on '"n[trn#' nerwork of b,siness .J""i,"^r'ntrr.

will

t'r'ility -inteErate irr""rpprv ch-ain is not a chain of businesses

multiple reiaiionsnips' bllt a net\\'ork of excellence process business Jeals *ith total with business and relationsil+r.icnn ro"nogt-n the business and relationships

with one-to-o"'

Uu'inJ"-io-t)i'i'""

nt'''J"y ui chain Management the ,rpprl chairi. s,lc,-'essful supply of other members The challenge is ,-,-,u*. qlul.u :11'.1,]-,t^"1" requires cross-runctioi"i'ii"ls"il"' this integlatlon'

ancl represen" o

accornplish to cletermine how to stlccessfitlly

view from to-sether clift'erent points of This symposium aims to bring government. and^international

"s"ngil various ideas and academics. business practitioners, goal to share ancl drsieminate institutions lvith the oiurri"t" practices in Suppi,v Chain Management' of papers' t"'--l5-'f^':T a,conceptual Final1y. we hope.that this compilation chain ;;;;h: can enrich our perspectir,e in..supply

.*o,r,.'ii "n managementonait'oppfitationincreatinghigherlevelofcompetltl\leness'

work ro

Ba1i.

-8 tSSN SZA-eZ 9'99365-7 '

Mruch 16'r'' 20 13

1r1

lOth UBAYA INTERNATIONAL ANNUAL SYMPOSIUM ON MANAGEMENT

TABLE OF CONTENTS

FOREWORD

TABLE OF CONTENTS

1.

THE EFFECT OF FINANCIAL RATIOS TO STOCK PRICE IN SEVERAL COMPANIES LISTED IN SzuKEIIATI GROTIP IN INDONESIA STOCK EXCHANGE Rosemarie Sutjiati

2.

Njotoprajitno

-

HIERARCHICAL INNOVATION MODEL DEVELOPMENT IN INDONESIAN PHARMACEUTICAL INDUSTRI Syuhada

J.

Sufian.

:

PLACEMENT EtrFECTIVENESS

OF AUTOMATIC TELLER

MACHINE ON INDONESIAN PRIVATE BANKING Victor Wianto, Agus Zainul 4.

5.

Arifin

FACTORS INFLI.IENCING THE SUPPLY CHAIN PERFORMANCE (A STUDY OF MANT]FACTURING FIRMS IN INDONESIA) Lina Anatan. CONSUMER BEHAVIOR AND INDONESIAN VALUES SCALE: VALIDATION AND SHORT-FORM SCALE DEVELOPMENT Sabrina O. Sihombing

6.

CONTRASTING REFLECTIVE AND FORMATIVE MODELS ON ESERVICE QUALITY: AN EMPIRICAL STUDY Jessica Adelaide Gusti, Sabrina O. Sihombing.......

7.

T}IE PREDICTIVE MODEL OF RELATIONSHIP BETWEEN ROLE STRESS, PERSONALITY, AND SALES PERFORMANCE IN SERVICES MARKETING Verina H. Secapramana....

ISBN : 978-979-99365-7 -B

Ji;

_:

:

MANAGEMENT l0th UBAYA INTERNATIONAL ANNUAL SYMPOSIUM ON

EFFECT OF COMPETENCE' TRAINING, MOTIVATION THIESS

8.

Ertrplovgg PERFoRMANCE, AGAINST PT CONTRACTORS INDONESIA AT BALIKPAPAN Didik HadiYatno. Misna Ariani'

POLICY INTEGRATION FOR HOUSEHOLD

9.

WASTE

MANAGEME,NTTHROUGHESTABLISHMENTOFWASTE'BANK Etty Soesiloivati, Sri Utamt' 10.

THE,ROLEOFE,VENTSPONSORSHIPINPROMOTINGTOURIST ENTHUSIASM (STUDIES IN SE,MARANGGREAT SALE' E\'ENT) Yudi Pramudiana, Arinda Ike

I

t.

Wardhani

10

'

DEVELOPINGACONCEPTLIALMODELoFF{OTEL,SNETWORK oFBUSINESSRELATIONSHIPSINTHEHOTELINDUSTRY:THE CASE OF HOTELS IN BALI. INDONE,SIA

il

Nyoman lndah Kusuma Dervi'

12.

TFIEEXISTINGMODELIDENTITICATIONoFCUCURBITASp (YELLOW PLMPKIN) AGRO INDUSTRY SUPPLY CHAIN I,TEXICEUTNTINGETASANSUB-DISTRICT.SE'MAR-{NG REGENCY

Hantoro' egurtin" Eva Maria Soekesi. Meniek Srining Prapti' lnneke

l3

Alberta Rika Pratiwi.

r3.

IN THE ANALYSIS OF INTERNAL AND EXTERNAL FACTORS FoRMULATINGCOMPETITIVESTRATEGIESoNSKULL-CAP AND TAMBOURINE INDUSTRIES IN BUNGAH VILLAGE GRESIK Sri Setyo Irjani, Monika Tiarawati

14.

t5.

15 '

MOTIVATIONALFACTORS.ENTREPRENEI]RSHIP.ETHNICITY, THE BLOK AND PARENTAL BACKGROLND: EVIDENCE FROM INDONESIA JAKARTA, CENTE,R, M SQUARE, E,LE,CTRONIC egurig Wahlu Handaru, Widya Parimita, Inna Hadza Sabila (TQM) THE INFLUENCE OF TOTAL QUALITY MANAGEMENT KE,RE,TA API PT. AT RAISING SALE,S TO APPLICATIONS [email protected]*""i"}111"!w?*frr----*-

iisN'eza-s79-9s365-7-8

rq18

v

11

I.OThUBAYAINTERNATIONALANNUALSYMPOSIUMONMANAGEME\I

INDONESIA (PERSERO) BANDI.NG THE

2ND

OPE.RATIONS ARE 1

R. Ait Novatiani, Pondang

t6.

INFLTIENCE OF PARTNERSHIP SRATEGIC TO PERFORMANCE OF PRIVATE COLLEGE IN BANDIJ]'{G Dini Arwati. Dini Verdania...................

r7.

EF'FECT

OF RELATIONAL QUALITY AND ENTREPRENEUR OzuENTATION TOWARD FRANCHISEE PERFORMANCE I\ INDONESIA

Lim 18.

Sanny.

IN SI.IPPLIER AND TRUST IN BRAND ON THE PURCHASE AND ATTITUDINAL T,OYALTY FOR RETAILER AT PT SINAR SOSRO IN SURABAYA INF'LLTENCE OF TRUST

Christina Esti Susanti......

r9.

EF'FECT CAPITAL ADEQUANCY RATIO (CAR) AND NON PERFORMING LOAN (NPL) ON RETURN ON ASSET (ROA) BANKING IN INDONESIA (SURVEY ON INDONESIA STOCK EXCHANGE /IDX) Rima Rachmawati, Priska Amelia.

20.

A

PROJECT OF IMPROVEMENT ON T}IE DESIGN OF JOBSAVORKS FOR PROFESSIONAL WORKE,RS AT PT. BI.]KIT BATIJBARA TBK - TFIE YEAR OF 2OIII2O12 WITH RECOMMENDATION: IMPLEMENTATION OF A CONTRIBLIOR

CASE STUDY:

MODEL

IN

CAREER MANAGEMENT FOR PROFESSIONAL

WORKERS T. Soemarman

21.

I I

I I

I

t

IMPACT OF INTELLECTUAL CAPITAL ON THE FIRM'S

MARKET VALUE: TFIE MEDIATION ROLE OF' FINANCIAL PERFORMANCE (E,MPIzuCAL STUDY FROM T}IE INDONESIAN BANKING COMPANIES SINCE 2001 -201 l) Sri Harryani, Bagus Nurcahyo, Renny Nur'aini..

ISBN:978-979-99365-7-8

vi

lOth UBAYA INTERNATIONAL ANNUAL SYMPOSIUM ON MANAGEMENT

22.

THE EFFECT OF ECONOMIC GROWTH ON THE NLMBER OF POOR PEOPLE IN INDONESIA. PERIOD 1994-2010

Sugianiningsih

23.

28

CLUSTER BUSINESS DEVELOPMENT AT THE NTICRO. SMALL AND MEDILM ENTERPRISES Wasifah Hanim

).1 L+

29

PRODUCT QUALITY CONTROL PROFILE ON LASEM BATIK CENTRE A-tustine Eva Maria Soekesi.

25.

BETTER INVESTMENT CHOICE IN CRISIS AND AFTER CRISIS: STOCK VERSUS GOLD

26.

21.

Eka Darmadi Lim, Liliana Inggrit Wijaya.

32

CAN INNOVATION OF TIME DRIVEN ABC SYSTEM REPLACE CONVENTIONAL ABC SYSTEM? Tan Ming Kuang.

JJ

COST EFFECTIVENESS ANALYSIS OF DIURETICS TI{ERAPY FOR ASCITES IN HEPATIC CIRRHOSIS PATIENTS AT ADI HUSADA UNDAAN WETAN HOSPITAL IN SLRABAYA Doddy de Queljoe, Amelia Lorensia, Indri purnama Putri

28.

EXAMINING VIRTUAL RECRL]ITING

ENVIRONMENT

FEATURES OF INDONESIA CORPORATE WEB SITE Yenny Purwati, Rosaly Franksiska. Eristia Lidia Paramita

29.

T}IE EFFECTS OF INTERPERSONAL COMMUNICATION AND MOTIVATION TO PRODUCTIVITY OF EMPLOYEES AT HOTEL MULIA JAKARTA I Gede Adiputra.

30.

THE SURVIVAL OF SMALL RESTAURANTS: MICRO ANALYSIS OF NON CLASSIFIED RESTALTRANTS IN KUTA SELATAN. BALI Ida Bagus Made Wiyasha, Ni Luh Suastuti.

ISBN: 978-979-99365-7 -8

38

].Oth

31.

UBAYA INTERNATIONAL ANNUAL SYMPOSIUM ON MANAGEME\]

SUPPLY CHAIN MANAGEMENT: STRATEGY IN INFORMATIO\

TECHNOLOGY TO REDUCE COST Mey,thi, Riki Martusa 32.

JJ.

EVALUATING TFIE FINANCIAL PERFORMANCE USING THE GROWTH OF EPS, CFO, AND EVA AND TFIEIR IMPACT TO T}tr STOCK RETURN OF LISTED TELECOMMUNICATIO\ INDUSTRY IN BEI Suskim Riantani, Harry Setyo Negoro, Alfiah Hasanah

EFFECT OF APPLICATION CORPORATE SOCIAI ON IMAGE PI ANTAM LINIT

RESPONSIBILITY

PASCATAMBANG KIJANG Sutama Wisnu D, Budi Astuti.

34.

LEADERSHIP AND FIVE STAGE MODEL OF ORGANIZATION GROWTHAT UD "RAMA JAYA" May Eka Saputri, Liliana Inggrit Wijaya.

35.

VALI,'E CHAIN CONCEPT ON STRATEGIC CSR PROGRAM: A CASE STI,IDY OF MARTHA TILAAR GROI,P Dianne Frisko.

36.

DEtrINE THE CRITERIA TO IDENTIFY CORE AND NON.CORE

ACTIVITIES TO

LEVERAGE TT{E COMPANY'S STRENGTMNING THE

COMPETIITIVENESS AND

PARTNERSHIP WITH OT}IERS

Alain Widjanarka...

37.

DETERMINANTS OF T}IE DECISION MUTUAL FTINDS IN INDONESIA

TO BUY AND

SELL

Irene Rini Demi Pangestuti............

38.

A

COMPARATIVE STUDY ON RETURN STOCKS BETWEEN VALI.IE STOCKS AND GROWTH STOCKS IN THE GO PUBLIC

COMPANIES

AT THE INDONESIAN STOCK

(PERTOD OF 2006-2010)

Panji Aditya Evindo, Nadia Asandimitra Haryono.........

ISBN: 978-979 -99365-7 -8

EXCIIANGE

lOth UBAYA INTERNATIONAL ANNUAL SYMPOSIUM ON MANAGEMENT

39.

FOREIGN DIRECT INVESTMENT T}IE CHINA EFFECT EXIST?

IN ASEAN.

1994-2010: DOES

Yulius Pratomo 40.

48

TTM RELATIONSHIP BETWEEN THE LEVEL OF T}IE USE OF

ERP SYSTEM, SCM,STRATEGIC ALIGNMENT.AND

FIRM

PERFORMANCE USING BALANCED SCORECARD APPROACH

Weli Imbri... 41.

49

INTERNAL AUDIT QUALITY ROLE IN IMPROVING EFFECTIVENESS OF QUALITY MANAGEMENT SYSTEM ISO 9001:2000 (Case Study PT INTI Bandung) Christine Dwi K.S., Sondang M.R., Adriana Oktarina Sembiring

/1)

50

THE IMPACT OF RELATED PARTIES' TRANSACTIONS TO MARKET VALUATION OF FIRMS 52

43.

IN INDONESIA: FINANCIAL POSITION, FINANCIAL PERFORMANCE AND KEY FINANCIAL TRANSITION OF IFRS INDICATORS EFFECTS Stephanie Susilo, Felizia Arni Rudiawarni....

44.

53

INFLI,ENCE OF JOB MOTIVATION AND JOB SATISFACTION ON EMPLOYEE PERFORMANCE IN ASURANSI JIWA BERSAMA (AJB) BLTN4IPUTERA 1912 SLRABAYA REGIONAL OFFICE Agus Frianto, Ayu Septirini.... . ...

45.

55

INNOVATION SUCCESS IN SMALL BUSINESS CONTEXT: AN EMPIRICAL EVIDENT FROM INDONESIA Aluisius Hery Pratono, Suyanto.

46.

56

FACTORS INFLUENCE INDONESIAN YOIING CONS{-A4ERS' ONLINE PI.]RCHASE INTENTION IN SOCIAL MEDIA WEBSITES Levina Rolanda 1jia, Christina R. Honantha.......

41.

51

CAREER DEVELOPMENT OF CREATIVITY REVIEWED. AND COURAGE IN BUSINESS INNOVATIVE MTLTI-LEVEL

ISBN: 978-979 -99365-7 -8

ix

lOth UBAYA INTERNATIONAL ANNUAL SYMPOSIUM ON MANAGEME\I

MARKETING (MLM) DISTRIBUTOR OzuFLAME DENPASAR Luh Kadek Budi Martini 48.

ANALYSIS OF THE MACRO ECONOMIC INFLUENCE FACTORS FINANCIAL AND PERFORMANCE COMPANY TO BI.IILD {

MODEL PREDICTION BANKRUPTCY (STI]DY AT

LISTED

COMPANIES IN IDX FOR YEAR 1999-2010) M. Sienly Veronica. 49.

EARNINGS MANAGEMENT TREND TOWARD COAL COMPAN\ LISTED IN TFIE. INDONESIA STOCK EXCHANGE WHICH EXPECTED TO BANKRUPTCY BY USE THE ALTMAN Z-SCORE

MODEL, SPRINGATE MODEL AND ZMIWISKY MODEL

I\

PERIOD 2009-2011 Suciaty Debora Ridwan, M.Sienly Veronica. 50.

FIRM CHARACTERISTICS, INTELLECTUAL CAPITAL, AND ENVIRONMENTAL PERFORMANCE (EMPIRICAL EVIDENCE FROM LISTED COMPANIES IN INDONESIA) Ni Wa,van Rustiarini.

51.

IMPROVING COMPANY'S COMPE,TITIVE ADVANTAGES BY IDENTIFYING WASTE IN THE PRODUCTION PROCESS CASE STUDY AT WATOETOELIS SUGAR MANUFACTI-]RER IN SIDOARJO

52.

GAUGING TF{E, FINANCIAL PERFORMANCE OF BANKING USING CAMEL MODEL: TI{E PROSPECT OF ISLAMIC BANK IN INDONESIA ACCORDING TO PUBLIC TRUST COMPARED WITH CONVENTIONAL BANK Yohanna Handjaja, Deddy Marciano, Liliana Inggrit Wijaya

53.

INFLI-,,ENCE OF MANAGEMENT PERFORMANCE AND INTELLECTUAL CAPITALTOWARD TFIE FIRM VALUE

T}IE

Agus Wahl.udi Salasa Gama, Ni Wayan Eka Mitariani.....

ISBN: 978-979 -99365'7 -B

lOth UBAYA INTERNATIONAL ANNUAL SYMPOSIUM ON MANAGEMENT

54.

TFIE ROLE OF POWER AND CONFLICT RESOLUTION IN SUPPLY CHAIN RELATIONSHIPS: SMALL AND MEDIT]M-SIZED ENTERPzuSES CONTEXT Amak Mohamad Yaqoub, Indri Apriani Rahma Pratama.

..

55.

T}IE

INFLTIENCE

STRATEGIES

ON

OF

PROSPECTOR

PERFORMANCE

AND

61

DEFENDER

WITH DIMENSIONS

OF

SOCIAL CAPITAL AS MODERATING VARIABLES Bambang Suko Priyono

s6.

68

ACTIVITY PERFORMANCE ANALYSIS OF SI.IPPLY CHAIN PERFORMANCE OF ACTIVITY MODEL APPROACH STUDY AT UKM KRIPIK BUAH KEBONSARI Choirum Rindah Istiqaroh, Saraswati Budi Utamj..... 69

57.

T}IE INFLIIENCE OF FINANCIAL

PERFORMANCE {EPS (EARNING PER SHARE), PER (PzuCE EQI,IITY) AND ROA (RETI.]RN ON ASSETS)} TO SHARE PRICE INDEX EARNING RATrO), DPR (DEVTDENT pAyOUT RATrO), ROE (RETURN ON EQUTTY) AND ROA (RETURN ON ASSETS)] TO SHARE pRrCE INDEX 1t

Dheo Rimbano, Sardiyo, Maulana.

58.

THE RELEVANCY OF USING WEBSITE FOR PROMOTING FIEALTH CARE PRODUCT AND SERVICES Edo Sri Harsanto, Naafilah Lailatirrohmah.

59.

EMOTIONAL ATTACHMENT RELATIONSHIP BETWEEN EMOTIONAL BRAND Rendy May Fandi, Efendi.....

60.

...

...

....

...

t-)

AS A MEDIATOR OF THE SERVICE QUALITY AND t4

MALMI AND BROWN'S MANAGEMENT CONTROL SYSTEM IN PRODUCTION AREA: A CASE STUDY IN PT DS STIRABAYA Fandy San Kartawidjaja, Fidelis Arastyo Andono.....

61.

15

TT{E EFtrECT OF FINANCIAL CONDITION. THE FAILURE OF DEBT RATIO, FIRM SIZE AND PI.]BLIC ACCOLNTING

ISBN : 978-979-99365-7 -B

xl

IOtI,UBAYA INTERNATIONAL ANNUAL SYMPOSIUM ON MANAGEMENT

REPUTATION ON ACCEPTANCE OF GOING CONCERN OPINION Hendro Lr-rkman, Stevanus Adree Cipto Setiawan.......

62.

EFFECT OF INVESTMENT OPPORTUNITY SET ON CASH DIVIDEND POLICY WITH AVERAGE OF SALES GROWTH ON EVERY LIFE CYCLE AS A MODER{TING VAzuABLE (STUDIES ON MANUFACTURING COMPANIES IN INDONESIA STOCK EXCHANGE)

I Dewa Made Endiana. 63.

THE EFFECT OF ACE. LEVEL OF EDUCATION. AUDITORS WORK EXPERIENCE AND TYPE OF BUSINESS CLIENT ON THE AUDIT DELAY PUBLIC ACCOLINTANT IN BALI

I Gede Cahyadi Putra.. GOOGLE SEARCH TRAFFIC AND IT'S INFLLIENCE ON RETURN. LIQUIDITY AND VOLATILITY OF STOCK RETLRN EMPIzuCAL STUDY: MANUFACTUzuNG FIRMS IN INDONESIA STOCK EXCTLANGE

Berto Usman. Eduardus Tandelilin.

65.

PENETRATING INDONESIAN BANK ASSURANCE MARKET:

STRATEGIC MANAGEMENT.

PT. ASLIRANSI

CIGNA

INDONESIA STYLE Suresh Kumar. Randy Prasetyo.

66.

COLLABORATION STR{TEGY ON INDLTSTRIAL CLUSTER (TFM NEW STRATEGY OF THE NEW ERA) Noviaty Kresna Darmasetiau an. . .. .

67.

.

FISH DISTRIBUTION SYSTEM DESIGN (CASE STUDY: FISH AUCTION PLACE SIDOARJO) Verani Hartati, Wiwik Sulistivowati

68.

SE,LF-CONCEPT AND SELF'-EFFICACY FOR BLIILDING AN ACADEMIC PE.RFORMANCE : SISTEMATIC REVIEW APPROACH Jun Surjanti. Dwiarko Nr-rgrohoseno, Sanaji.

ISBN: 978-979 -99365-7 -8

lOth UBAYA INTERNATIONAL ANNUAL SYMPOSIUM ON MANAGEMENT

69.

TOTAL QUALITY MANAGEMENT IN EDUCATION (TQME): PROSPECiIVE STRATEGY FOR HIGHER EDUCATION INSTITUTION Ratna Widiastuti'....

70.

84

THE ROLE OF ENVIRONMENTAL TNCERTAINTY AND IMPLEMENTATION SI.JPPLY CHAIN F'OR INCREASING COMPETITIVEADVANTAGEMANI,IFACTURINGINDUSTRIES IN EAST JAVA Sahnaz

'71.

ljbud..

INCREASING WHOLESALE CE.NTERS ROLE AS PART OF SUPPLY CHAIN MANAGEMENT OF SME,S Kabul Wahyu Utomo, Ludwina Harahap, Lely Dahlia"

'72.

COLLECTIVE ENTREPRENEURSHIP PATTERNSFOR COOPERATIVE KULONPROGO RE,GE,NCY, Lely Dahlia.

73.

'

86

PARADIGM AS A DEVELOPMENT IN

201 3 8'7

T}IEEVALUATIONoFUSINGIMPoRTANCEPERFORMANCE ANALYSIS (IPA) TO DESIGN SERVICE EXCELENCE PROGRAM Mudiantono, Rizal Hari

74.

85

Magnadi.

'

89

IMPROVEMENT BANK CUSTOMER SATISFACTION WITH SERVICE QUALITY ABSTRACT

Yeuy Dwi 15.

Listari.

90

STRATEGIESToIMPLE,MENTTFIECHANGESINT}IEBASISoF CASH TRANSFER FROM A HOUSE,HOLD-BASE TO A FAMILYBASE: THE CASE OF PKH IN INDONESIA

9l

Muhammad Nashihin.

76,

CORPORATE GoVE,RNANCE, SUSTAINABILITY, AND ISLAMIC

BANKING PERFORMANCE Rohmawati Kusumaningtias" "

iSBN : 978-97 9-99365-7 -B

92

'

xlll

l0th UBAYA INTERNATIONAL ANNUAL SYMPOSIUM ON MANAGEME\:

77.

TFM ROLE OF INSURANCE AGREEMENT AS PART OF RISI\ MANAGEMENT IN INDONESIAN BUSINESS ACTIVITY Aris Armuninggar...

18.

THE IMPACT OF THE USE OF OUTSOURCING EMPLOYEE AGAINST PRODUCTIVITY COMPANIES IN PT.PINDAD BANDLNG Sri Wiludjeng S. P., Muhammad Madyosa Ibrahim...

79.

80.

SUSTAINABLE BUSINESS INNOVATION TO WIN T}IE COMPETITION A CASE STUDY OF INNOVATION BY WAYAN I\ BI,ILLFROG FARMING IN BALI Liliana Inggrit Widjaya, Dudi Anandya, Fitri Novika Wijaya SYSTEMATIC RISK AS MODERATOR OR MEDIATOR OF THE INFLUENCE BETWEEN MACROECONOMIC FUNDAMENTAL FACTORS AND STOCK RETI]RN Yeye Susilowati.......

81.

MANAGING GLOBAL BUSINESS BY MINIMIZING THE EFFECTS OF RUPIAH'S

VOLATILITY

Christina Yanita Setyawati.

82.

THE PE,RCEPTION OF ADOPTING AN

INFORMATION TECHNOLOGY INNOVATION ON THE RURAL BANKS OWNED BY LOCAL GOVERNMENT Elen Puspitasari, Ceacilia Srimindarti.

83.

MODEL APPLICATION SERVICE LEVEL WITH SERVICE UNITS PER DEMANDED TYPE ON GRESIK CEMENT AND TONASA CEMENT STOCKS IN UD ''TJ'' DALLING-DENPASAR-BALI Pertiwi Surya Negara, Juliani Dyah Tresnawati, Budhiman Setyawan.

84.

THE, EFtrECTIVENESS OF INDEPENDENT COMMISSIONER IN IMPLEMENTING GOOD CORPORATE GOVERNANCE AT INDONESIAN STATE-OWNED ENTERPRISES Synthia A. Sari.

ISBN: 978-979-99365-7 -8

XIV

ON MANAGEMENT lOth UBAYA INTERNATIONAL ANNUAL.SYMPOSIUM

@

85.

AND INDONESIAN READERS' MOTIVATIONS

ATTITUDE

TOWARDS DIGITAL PRESS

101

Anandya' Indarini Ct-,rlstlna Rahardja Honantha, Dudi

86.

87.

88.

OVERSEAS COMPANIES MANAGEMENT STYLE OF CHINESE

AND INDONESIA COMPANIES Yie Ke Feliana.

102

ANALYSIS IMPLEMENTATION OF VALI.]E CHAIN

IN

THE

SROII-EN STIPPLY CHAIN AGRIBUSSINESS Rini Oktavera, Erna Andjani'

103

VOTING AND CASH IMPACT OF DIVERGE,NCE BETWEEN ppnOUANCE: ULTIMATE OWNERSHIP IN FLOW RIGHTS OX

INDONESIA

105

I Putu Sugiartha Sanjaya' 89.

ENGINEERING ACTIVITY COMPLAINT HANDLING TTIE & SIIITES HOTEL OEPENTT',TENT NOVOTEL SIIRABAYA Anita Wongso, Fitri Novika

90.

Widjaja'

106

"

ANALYSIS IN BUSINESS IMPLEMENTATION OF FIVE FORCES drinr Up: GASE srirDY oF HE'RY

107

KARYA MEDIA' IMPACT OF ACQUISITION OF PT. INDOSIAR TBK isK sv pr. ELANG MAHKoTA TEKNoLoGI'

r08

FARM

Maria Assumpta Evi Marlina'

91.

Kazia Laturette...... 92.

(BI RATE) ON TTIE INFLTIE,NCE OF MONETARY POLICY INDoNESIA IN BANKS piornnsrt-lTY oF coMMERcIAL Lia Amaliawiati, Edi

93.

Winarso"

110

INSOURCING? AN EMPIzuCAL OPERATION AT "NH CATERING INVESTIGATION TON

OUTSOURCING

OR

eqTQnH,' BUSINESS trIRM,

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INFLUENCE OF TRUST IN SUPPLIER AND TRUST IN BRAND ON THE PURCHASE AND ATTITUDINAL LOYALTY FOR RETAILER AT PT SINAR SOSRO IN SURABAYA Christina Esti Susanti Widya Mandala Catholic University ABSTRACT Trust is the foundation of business. A business transaction between two or more parties will occur if there is trust each other. Trust can’t simply be claimed by other parties/business partners, but must be built from scratch and can be proven. Trust is an important factor because it is very fundamental in a business relationship and a measure of the quality of business relationships forged. The purpose of this study was to determine the effect of trust in supplier and trust in brand on purchase and attitudinal loyalty for retailer’s PT Sinar Sosro in Surabaya. This study formulates its problems as follows: (1) Does trust in supplier affect on the purchase at PT Sinar Sosro in Surabaya?, (2) Does trust in brand influence on purchase at PT Sinar Sosro in Surabaya?, (3) Do trust in suppliers and trust in brand simultaneously influence on the purchase at PT Sinar Sosro in Surabaya?, (4) Which of trust in supplier and trust in brand has a dominant influence on purchase at PT Sinar Sosro in Surabaya?, (5) Does trust in supplier influence on attitudinal loyalty at PT Sinar Sosro in Surabaya?, (6) Does trust in brand influence on attitudinal loyalty at PT Sinar Sosro in Surabaya?, (7) Does trust in suppliers and trust in brand simultaneously influence on attitudinal loyalty at PT Sinar Sosro in Surabaya?, (8) Which of trust in supplier and trust in brand has a dominant influence on attitudinal loyalty at PT Sinar Sosro in Surabaya?, and (9) Does purchase intention influences on attitudinal loyalty at PT Sinar Sosro in Surabaya. This research is the study of hypothesis testing, with members of the population of retailers that sell Teh Botol Sosro in Surabaya with a total sample of 100 respondents. The sampling technique in this study used a non probability sampling with a purposive sampling method. The analysis technique used is multiple linear regression analysis, analysis of multiple correlation coefficient, the coefficient of multiple determination analysis, correlation coefficient analysis and partial determination. The research found that: (1) trust in supplier influences on purchase intention at PT Sinar Sosro in Surabaya, (2) trust in brand influences on purchase intention at PT Sinar Sosro in Surabaya, (3) trust in suppliers and trust in the brand simultaneously influence the purchase intention at PT Sinar Sosro in Surabaya, (4) trust in brand dominantly influences on purchase intention at PT Sinar Sosro in the Surabaya, (5) trust in supplier effect on attitudinal loyalty at PT Sinar Sosro in Surabaya, (6) trust in brand effect on attitudinal loyalty at PT Sinar Sosro in Surabaya, (7) trust in supplier and trust in brand influence simultaneously on attitudinal loyalty at PT Sinar Sosro in Surabaya, (8) trust in brand dominantly influences of attitudinal loyalty at PT Sinar Sosro in Surabaya, and (9) purchase intention influences on attitudinal loyalty at PT Sinar Sosro in Surabaya. PT Sinar Sosro are advised to more understanding and attention to the needs and desires of the retailer. It is something urgent to improve the product quality of Teh Botol Sosro in order for retailer’s trust in PT Sinar Sosro in Surabaya increase. Keywords: trust in supplier, trust in brand, purchase, and attitudinal loyalty.

RESEARCH BACKGROUND In this era, purchase intention and attitudes of consumers loyal to the company is also heavily influenced by the confidence (trust) consumers, employees, companies, and brands. Trust is the basis for a business relationship and an important prerequisite in a business interaction. Trust becomes a foundation for the company or a person to transact business with other companies or individuals. The trust that exists between the consumer (retail) either by employees, companies, and brands of the company can make the relationship more closely, and the company as a vendor more flexibility to develop new products and offer it to consumers. According to Morgan and Hunt (1994) if a company can increase the confidence of retail outlets that become customers, then the long-term relationships with retailers will be realized. Anderson, Claes, and Donald (1994) in Schellhase (2000) stated that the distribution partner satisfaction is the key to success suppliers suppliers. Ganesan (1994) states that retailer confidence in the company (suppliers) can influence the willingness of retailers (outlet) is to establish a long term relationship with the company. Plank, Reid and Pullins (1999) states that in the event the relationship between the buyer (retailer) and sellers (suppliers) then that should be considered is the salesperson's confidence because it is a reflection of the confidence in the reliability of the power and the responsibility of the seller because the seller has obtained a good faith of the retailer (outlet). Crosby, Evans, and Cowles (1990) stated that the reliability of the sales force effect on relationship quality (trust) from a retailer in the sales force. So with the reliability that is owned by the sales force is expected confidence in the sales force can be realized. Liu and Leach (2001) stated that the perception of the reliability of the sales force is a form of consumer confidence and trust that the salesperson has a range of relevant specialist knowledge and support for the success of the business relationship. Anderson and Narus (1990) in Liu and Leach (2001) states that if there is a trust between the buyers and salespeople will create a partnership to develop their ideas, goals and solve problems. Crosby, et al, (1990) also stated that belief reflected in the company of the buyer's willingness to rely on the sale of the company. Previous research referenced in the study conducted by Rauyruen et al., (2007) with the title "Relationship Quality as Predictor of B2B Customer Loyalty". Conclusion The results of these studies is to maintain customer loyalty to the supplier, the supplier can pay attention to four aspects of relationship quality that consists of trust, commitment, satisfaction, and service quality. Problem Formulation Based on the background of the problem, the research question of this study are as follows: 1. Does trust in supplier affect on the purchase at PT Sinar Sosro in Surabaya? 2. Does trust in brand influence on purchase at PT Sinar Sosro in Surabaya? 3. Do trust in suppliers and trust in brand simultaneously influence on the purchase at PT Sinar Sosro in Surabaya? 4. Which of trust in supplier and trust in brand has a dominant influence on purchase at PT Sinar Sosro in Surabaya? 5. Does trust in supplier influence on attitudinal loyalty at PT Sinar Sosro in Surabaya? 6. Does trust in brand influence on attitudinal loyalty at PT Sinar Sosro in Surabaya? 7. Do trust in suppliers and trust in brand simultaneously influence on attitudinal loyalty at PT Sinar Sosro in Surabaya? 8. Which of trust in supplier and trust in brand has a dominant influence on attitudinal loyalty at PT Sinar Sosro in Surabaya?

9. Does purchase intention influences on attitudinal loyalty at PT Sinar Sosro in Surabaya. Research Objectives Based on the formulation of the problem, the objectives of this study were to determine: 1. Trust in supplier influences on purchase at PT Sinar Sosro in Surabaya 2. Trust in brand influences on purchase at PT Sinar Sosro in Surabaya 3. Trust in suppliers and trust in the brand simultaneously influence the purchase at PT Sinar Sosro in Surabaya 4. Trust in brand dominantly influences on purchase at PT Sinar Sosro in the Surabaya 5. Trust in supplier effect on attitudinal loyalty at PT Sinar Sosro in Surabaya 6. Trust in brand effect on attitudinal loyalty at PT Sinar Sosro in Surabaya 7. Trust in supplier and trust in brand influence simultaneously on attitudinal loyalty at PT Sinar Sosro in Surabaya 8. Trust in brand dominantly influences of attitudinal loyalty at PT Sinar Sosro in Surabaya. 9. Purchase intention influences on attitudinal loyalty at PT Sinar Sosro in Surabaya. Benefits of Research The results of this study might be expected to provide: 1. Academic benefits The results of this research can be used as an additional reference for those who want to do further research, in particular on the effect of employee trust, trust in suppliers, trust in brand to purchase intention and attitudinal loyalty. 2. Practical benefits The results of this research can be used by companies as an additional information in decision-making, particularly in developing attitudinal loyalty and purchase intention. LITERATURE REVIEW Previous Research Previous research referenced in the study conducted by Rauyruen et al., (2007) with the title "Relationship Quality as Predictor of B2B Customer Loyalty". From the results of these studies it is known that to obtain customer loyalty, suppliers seeking to improve customer satisfaction and service system design is excellent. For that, one must focus on building supplier relationships to create the basis of consumer confidence. Furthermore, the results of these studies indicate that trust in suppliers affects loyalty. It also implies the basis of the behavior of the consumer repurchase intentions and loyalty behaviors are more influenced by consumer confidence and commitment to the supplier. Trust According to Anderson and Narus (1990), trust is a willingness to rely on the cooperation of partners who have believed. From the definition, it can be stated that the trust is a trust given to the other party in the transaction having a conviction that those who believed it would meet its obligations as well, as expected. Therefore, confidence in the salesperson, product, and the company is very important in maintaining long-term relationships between the company and customers (retailers) because trust is the overall confidence of the buyer (retailer) of the salespeople, brands, and companies to offer suitable compliance knowledge customers.

Morgan and Hunt (1994) states there are several indicators for the variables shown confidence in the company (supplier): credibility, reliability and caring company. Credibility is the ability of the company to be shared by the partners both orally and in writing; reliability of the company is the image of the company both in terms of toughness and services of marketed products; care is a form of action that is displayed by the company as a form of aid and attention to retailers. According to Lau and Lee (1999) there are five indicators to measure consumer confidence in the suppliers are: consumers believe in the company, consumers believe that companies have a good product quality, consumers are able to trust the company as a company that has a good production standards, consumers feel safe when using products from companies because they know the company will not make her upset, consumers believe that companies can work well. Lau and Lee (1999) define trust in the brand as the desire of the consumer to rely on the function of the performance of a brand. Further Lau and Lee (1999) states that the trust of the brand is the consumer's willingness or willingness to face risks related to brand purchased and will give a positive result or benefit. According to Kotler and Armstrong (2001) trust in a brand is a set of consumer beliefs about a particular brand. Lau and Lee (1999) stated that there are five indicators to measure consumer confidence in the brand are: consumers believe in the brand, the brand company to be reliable, consumers feel that companies can trust the brand because it has good quality, consumers can rely on the company's brand, consumers feel safe when purchasing company's brand because consumers know the brand of the company will not disappoint. Purchase Intention Kotler (2005:224) stated that the purchase intention begins with the stage looking for or recognize the need, then the consumer will move to the second stage of information retrieval. The information sought is about products, brands and manufacturers of these products. The information collected will be evaluated at a later stage. As the output of the third stage is the purchase decision. When it has made a purchase and consume products purchased, consumers will evaluate both products and services that have been received in the purchasing process. Positive results of the evaluation will push to make repeat purchases in the future, but a negative evaluation will motivate consumers to no longer consume the product. Attitudinal Loyalty Approach to understanding attitudinal loyalty as the aspect of joy and commitment to a particular object (Assael, 1998:130; Dharmmesta, 1999). According to Schiffman and Kanuk (2000:130), the attitude of loyal customers is a consistent choice or purchase the same brand, by consumers of a particular product. The attitude of loyal consumers can be understood as a positive attitude towards a brand that encourages consumers to consistently buy the brand when the product category is needed. That should be done by marketers are continuously communicate the brand positioning to consumers. With these communication activities also indirectly marketers build brand preference and establish loyal consumer attitudes towards brands and products. Influence Between Variables Ganesan (1994) stated that in order to create consumer purchase intention, the variables that influence trust in the supplier is formed of satisfaction with service strategy and the reputation of the supplier. Morgan and Hunt (1994) states that the behavior of connection that occurs between a company and its partners are largely determined by consumer confidence and commitment to the company. So it can be concluded that the belief in the company will have a positive relationship with purchase intentions.

Aperia (2001), quoted Morling and Strannegard (2004) states that the popularity and trust in a brand can provide a sense of prestige and pride to their customers, so that it becomes the first and foremost thing to be considered for the consumer to have the intention to buy a product or merit. Research Model The research model in this study is shown in the following figure. Trust in Supplier (X1) Purchase Intention (Y1)

Attitudinal Loyalty (Y2)

Trust in Brand (X2)

Figure 1 Research Model Hypothesis The hypothesis to answer the problem formulation in this study were:Trust in supplier influences on purchase at PT Sinar Sosro in Surabaya 1. Trust in brand influences on purchase at PT Sinar Sosro in Surabaya 2. Trust in suppliers and trust in the brand simultaneously influence the purchase at PT Sinar Sosro in Surabaya 3. Trust in brand dominantly influences on purchase at PT Sinar Sosro in the Surabaya 4. Trust in supplier effect on attitudinal loyalty at PT Sinar Sosro in Surabaya 5. Trust in brand effect on attitudinal loyalty at PT Sinar Sosro in Surabaya 6. Trust in supplier and trust in brand influence simultaneously on attitudinal loyalty at PT Sinar Sosro in Surabaya 7. Trust in brand dominantly influences of attitudinal loyalty at PT Sinar Sosro in Surabaya. 8. Purchase intention influences on attitudinal loyalty at PT Sinar Sosro in Surabaya. RESEARCH METHODS Population, Sample and Sampling Techniques The population in this study are all retailers that sell Botol Sosro in Surabaya. The sample in this study is the retailer with the following criteria: residence in Surabaya, has sold Botol Sosro for at least 1 year, and have done the reorder more than 12 times. The sample size amounted to 100 retailers. The sampling technique used was purposive sampling technique, so that the sample selected must meet established criteria. RESULT AND DISCUSSION Identification of respondents based on the characteristics of respondents in the study are as follows. Table 1 Identification of Respondents CHARACTERISTICS Domicile in Surabaya The bottle has sold Sosro for ≥ 1 year Have done as much reorder> 12 times

Source: Data processed

TOTAL 100 100 100

PERCENT (%) 100 100 100

Based on Table 1 note that all sample respondents met the criteria established in this study. Therefore, the analysis can proceed. Table 2 Variable Descriptive Statistics Research

No STATEMENT Trust in Supplier (X1) 1 PT Sinar Sosro credible 2 PT Sinar Sosro reliably producing 3 PT Sinar Sosro care for retailers Trust in Brand (X2) 1 Sosro Botol produced credible PT Sinar Sosro 2 Sosro Botol produced reliable PT Sinar Sosro 3 Sosro Botol produced by PT Sinar Sosro have a good quality Purchase Intention (Y1) 1 I intend to buy a manufactured Botol Sosro PT Sinar Sosro as credible 2 I intend to buy a manufactured Botol Sosro PT Sinar Sosro as reliable 3 I intend to buy a manufactured Botol Sosro PT Sinar Sosro because it has a good quality Attitudinal Loyalty (Y2) 1 In the future, I will always buy and sell Botol Sosro produced by PT Sinar Sosro 2 I would recommend another supplier to buy and sell Botol Sosro produced by PT Sinar Sosro 3 I will pass on the information to other suppliers about the quality of the produced Sosro Botol PT Sinar Sosro Source: Data processed

MEAN

EXPLANATION

3.9 3.8 3.8

Agree Agree Agree

3.9 3.9 4

Agree Agree Agree

4,3

Very Agree

4

Agree

3.9

Agree

4

Agree

4,2

Very Agree

3,6

Agree

Based on Table 2 it is known that the respondent agrees to all of the statements of all the variables examined in this study are indicated with a mean of > 3. Test Validity and Reliability Validity test is used to measure the validity of the questionnaire revealed that the variables measured in the study. Validity of the test results shown in the following table.

Table 3 Test Validity Item Kuesioner Trust in supplier (X1) X1.1 X1.2 X1.3 Trust in brand (X2) X2.1 X2.2 X2.3 Purchase intention (Y1) Y1.1 Y1.2 Y1.3 Attitudinal loyalty (Y2) Y2.1 Y2.2 Y2.3

Validity

Explanation

Correlation

Significance

0,839 0,678 0,865

0,000 0,000 0,000

Valid Valid Valid

0,896 0,868 0,795

0,000 0,000 0,000

Valid Valid Valid

0,843 0,810 0,775

0,000 0,000 0,000

Valid Valid Valid

0,854 0,899 0,820

0,000 0,000 0,000

Valid Valid Valid

Source: Data processed According to Table 3 it appears that the significant value of 0. These results indicate that the item is declared valid questionnaires and deserves to be analyzed further. Test Reliability Reliability is a tool to measure the reliability or the reliability of the study variables. A variable is declared reliable if Cronbach Alpha values> 0.60. Reliability test results are shown in the following table. Table 4 Test Reliability Variable

Cronbach’ Alpha Test

Trust in Supplier (X1) Trust in Brand (X2) Purchase Intention (Y1) Attitudinal Loyalty (Y2) Source: Data processed

0,7 0,8 0,7 0,8

Cronbach’ Alpha standar >0,6

Explanation Reliabel Reliabel Reliabel Reliabel

Based on Table 4 it appears that the value of Cronbach's Alpha> 0.60 for all variables. These results indicate that the variable is declared reliable and feasible study for further analysis.

Data Analysis Table 5 Structural Equation Modelling Indeks Goodness of Fit Measure χ2-chi-square Significant Probability RMSEA GFI AGFI CMIN/DF TLI CFI Source: Data processed

Cut-off Value Kecil > 0.05 ≤ 0.08 ≥ 0.90 ≥ 0.90 ≤ 2.0 ≥ 0.95 ≥ 0.95

Result Analysis 154,697 0,060 0,031 0,931 0,913 1,033 0,979 0,983

Model Evaluation Fit Fit Fit Fit Fit Fit Fit

Based on Table 5 note that the results of Structural Equation Modelling index indicates a good value, so it can be concluded that the model is very good for measuring the level of acceptance of a model. Structural Model Testing (Structural Model Fit) Table 6 Standard Loading Between Variables Variabel Purchase Intention (Y1) <- Trust in Supplier (X1) Purchase Intention (Y1) <- Trust in Brand (X2) Attitudinal Loyalty (Y2) <- Purchase Intention (Y1) Source: Data processed

Standard Loading 0.866 0.494 0.205

In Table 6 to determine the structural equation model of the study as follows: Equation 1: PI = β1 TiS + β2 TiB + e pi PI = 0,866 TiS + 0,494 TiB

R2 = 0,995

If the variable Trust in Supplier change will cause changes in Purchase Intention in the direction of positive change. Positive sign indicates that the direction of change that is if the variable increases, Trust in Supplier Purchase Intention will increase, and vice versa if the variable decreases the Trust in Supplier Purchase Intention will decrease the value of path coefficient 0.866. If the variable changed the Trust in Brand Purchase Intention will cause a change in the direction of positive change. Positive sign indicates that the direction of change that is if the variable increases, the Trust in Brand Purchase Intention will increase, and vice versa if the variable decreases the Trust in Brand Purchase Intention will decrease the value of path coefficient 0.494. While the relationship between the Trust in Supplier and Trust in Brand Purchase Intention is equal to 0.995.

Equation 2: AL = β1 PI + e al AL = 0,205 PI

R2 = 0,042

If the Purchase Intention variable changes, it will lead to attitudinal changes Loyalty to the direction of positive change. Positive sign indicates that the direction of change that is if the variable increases, the attitudinal Purchase Intention Loyalty will increase, and vice versa if the variable decreases the Purchase Intention attitudinal Loyalty will decrease the value of path coefficient 0.205. While the relationship between Purchase Intention with attitudinal Loyalty is at 0.042. Hypothesis Testing The next step is to test the hypothesis of causality, which examined the effect of the variables corresponding research hypothesis. Tabel 7 Estimate Direct Effect Hypotesis Purchase 1 Intention (Y1) Purchase 2 Intention (Y1) Purchase 3 Intention (Y1) Attitudinal 5 Loyalty (Y2) Attitudinal 6 Loyalty (Y2) Attitudinal 7 Loyalty (Y2) Attitudinal 9 Loyalty (Y2) Source: Data processed

Information

Estimate

P

Significance Significant

<-

Trust in Supplier (X1)

0.494

0.000

<-

Trust in Brand (X2)

0.866

0.005

<-

Trust in Supplier (X1), Trust in Brand (X2)

0.995

0.000

<-

Trust in Supplier (X1)

0.101

0.000

<-

Trust in Brand (X2)

0.177

0.000

<-

Trust in Supplier (X1), Trust in Brand (X2)

Significant Significant Significant Significant Significant 0.042

0.000 Significant

<-

Purchase Intention (Y1)

0.205

0.042

Table 7 shows that all the hypotheses proposed in the study is significant. This means that all the hypotheses stated in this study revealed a statistically acceptable. Discussion 1. Trust in supplier Influences on purchase intention at PT Sinar Sosro in Surabaya In this study demonstrated that the variables of trust in the supplier has an average rating of 3.83 which means that the responses to the variables of trust in the supplier

is good. While purchase intention variable has an average rating of 4, which means the responses are good. The variable trust in suppliers weak but significant effect on purchase intention for 0494. This means that the hypothesis first proposed in this study, is acceptable. This indicates that the company's retailer confidence is one factor that makes the retailer intends to buy products from the company. The results of this study corroborate the opinion Ganesan Morgan and Hunt, 1994 and 1994 which states if consumers believe the company will lead to consumer purchase intention. Instead, the results of this study do not support the research that has been done before by Rauyruen et al., (2007) which showed that trust in suppliers that do not have a significant effect on purchase intention. 2. Trust in the brand Influences on purchase intention at PT Sinar Sosro in Surabaya In this study demonstrated that the variables trust in the brand has an average rating of 3.93 which means that the responses to the variables trust in the brand is good. While purchase intention variable has an average rating of 4, which means the responses are good. The variable trust in brand strong influence on purchase intention significantly because they have value estimate for 0866. 2, which means that the hypothesis proposed in this study, is acceptable. The results of this study support the idea Aperia (2001), quoted Morling and Strannegard (2004) which states that the confidence of a brand can be a consideration for consumers to have the intention of purchasing a product or service. 3. Trust in suppliers and trust in the brand simultaneously influence the purchase intention at PT Sinar Sosro in Surabaya Variables trust in the supplier and variable trust in the brand is very strong simultaneously have significant effect on purchase intention for 0995. This indicates that the company's confidence in retailers and suppliers to brand trust is a factor that makes the retailer intends to buy products from the company. This means that the third hypothesis proposed in this study, is acceptable. 4. Trust in the brand dominantly Influences on purchase intention at PT Sinar Sosro in the Surabaya Based on the hypothesis 1 and 2 it appears that trust in brand purchase intention dominant influence on PT Sinar Sosro Surabaya. This means that in this study, demonstrated that when compared with the effect of consumer trust on consumer confidence in the brand suppliers more dominant influence on buying interest in PT Sinar Sosro Surabaya. This means that the fourth hypothesis proposed in this study, is acceptable. 5. Trust in supplier effect on attitudinal loyalty at PT Sinar Sosro in Surabaya In this study demonstrated that the variables of trust in the supplier has an average rating of 3.83 which means that the responses to the variables of trust in the supplier is good. Whereas attitudinal loyalty variable has an average rating of 3.9, which means the responses are good. The variable trust in suppliers weak but significant effect on attitudinal loyalty for 0101. 5 This means that the hypothesis proposed in this study, is acceptable.

6. Trust in effect on attitudinal brand loyalty at PT Sinar Sosro in Surabaya In this study demonstrated that the variables of trust in the brand has an average rating of 3.93 which means that the responses to the variables of trust in the brand is good. Whereas attitudinal loyalty variable has an average rating of 3.9, which means the responses are good. The variable trust in suppliers weak but significant effect on attitudinal loyalty for 0177. 6 This means that the hypothesis proposed in this study, is acceptable. 7. Trust in supplier and trust in the brand influence simultaneously on attitudinal loyalty at PT Sinar Sosro in Surabaya Variables and variable trust in the supplier trust in the brand is very strong simultaneously have significant effect on attitudinal loyalty for 0042. This indicates that the company's confidence in retailers and suppliers to brand trust is a factor that makes the retailer intends to be loyal to the company. This means that the hypothesis 7 are proposed in this study, is acceptable. 8. Trust in dominantly Influences of attitudinal brand loyalty at PT Sinar Sosro in Surabaya Based on the hypothesis 5 and 6 it appears that trust in the brand dominant influence attitudinal loyalty to PT Sinar Sosro Surabaya. This means that in this study, demonstrated that when compared with the effect of consumer trust on consumer confidence in the brand suppliers more dominant effect on the interest of loyalty to PT Sinar Sosro Surabaya. 8 This means that the hypothesis proposed in this study, is acceptable. 9. Purchase intention Influences on attitudinal loyalty at PT Sinar Sosro in Surabaya The variable purchase intention weak but significant effect on attitudinal loyalty for 0,205. This suggests that the effect on the purchase intention supplier intention to be loyal to the company. This means that the hypothesis 9 is proposed in this study, is acceptable. Conclusion Based on the analysis and discussion, the conclusion of this research is all the hypotheses proposed in this study received. This means that consumer confidence in the supplier and consumer confidence in the brand either partially or simultaneously significant effect either on purchase intention and intention of consumers loyal to the supplier. In addition to this, the effect on consumer purchase intention of consumers loyal intentions of its suppliers. Suggestion Based on the analysis and discussion of the advice that can be given is as follows: 1. Theoretical suggestions For future studies are expected to examine in more depth especially on other factors beyond those examined in this study, the effect on purchase intention and intention retailers are loyal to the company. 2. Practical Advice a. PT. Rays Sosro recommended to better understand and consider the needs and desires of retailers to increase trust in the supplier. b. PT. Sosro ray suggested to improve the quality and quality of marketed products and increase the variety of products that are sold to enhance trust in the brand.

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