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SERVICE IMPLEMENTATION OF CONSUMER INTEREST IN TEBING TINGGI BUSINESS CLINIC SUMATERA UTARAM. Umar Maya Putra *1
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Article Type: Research Article
Article Citation: M. Umar Maya Putra, and Syafrida Damanik.
(2020). SERVICE IMPLEMENTATION OF CONSUMER INTEREST IN TEBING TINGGI BUSINESS
CLINIC SUMATERA UTARA. International Journal of Research -GRANTHAALAYAH, 8(9), 200-208.
https://doi.org/10.29121/granthaalayah.v8.i9.2020.1387
Received Date: 02 September 2020
Accepted Date: 30 September 2020
Keywords:
Consumer
Entreprises
Busines
Tebing Tinggi
ABSTRACT
This research begins with the development of MSMEs (Micro, Small and Medium Enterprises) which is an illustration of strengthening regional potential. Developing MSMEs can improve services to consumers in order to create buying interest. The benchmarks that are assessed through the level of confidence in a product directly aim to analyze customer interest. In this study, it is explained that customer interest is product quality, service quality, price, and cost which are closely related to meeting the service needs of the Tebing Tinggi Business Clinic (KLIBI) assisted them. The method used is the canonical analysis method which is a multivariate model that studies the relationship between the dependent variable set varied from the independent variable set. The data characteristics for canonical correlation are metric data, namely interval or ratio data. The research result gained that responsiveness and concern give the significant effect on the cost so that customers want to buy continuously. For the recommendation, The Government needs to improve the quality of product endorsement among Tebing Tinggi and Indonesian consumers by making the program business promotion and international exhibitions through KLIBI.
1. INTRODUCTION
The current rapid development of MSMEs can be used as a
potential for an area to become stronger in terms of strengthening the supply
of goods and services. It
makes them think
about patterns of service to consumers in order to increase their buying interest continuously
The power of product sales can increase consumer interest.
The choices and product offerings provided, present quality products and
convince consumers' interest
[1].
Customer interest can be measured from four dimensions such as product quality, service
quality, price and cost. This can be used as a benchmark where the level of
confidence in a product can be measured directly [2].
Tebing Tinggi City is an area that has 53.32% land allocated
for settlements, followed by agriculture (29.66%). This area also has
considerable potential in other sectors such as agriculture, mining, industry
and trade to strengthen buying interest and improve services. The development
of trade needs to be strengthened in order to improve the welfare of society,
especially in improving the quality of entrepreneurs in getting as many
consumers as possible [3].
Researchers
are interested in taking several indicators that researchers think affect the
fulfillment of their service
needs assisted by KLIBI Tebing Tinggi, It gets customers
who are always committed to improving creativy and innovative product who have promoted at
home and abroad, so it had been to review the implementation
of consumer Interest in services of the Tebing Tinggi
Business Clinic Foster Partners through Canonical Correlation The development of the rapid trade sector
in Tebing Tinggi City
Based on the background that has been described, the research problems can be described how to implement customer interest (product quality, service quality, price, and costs) in meeting service needs, how to measure the canonical correlation between customer interest and the dimensions of meeting service needs and recommendations for what to do. to improve the analysis of customer interest for SMEs assisted by Klibi Tebing Tinggi.
2. MATERIALS AND METHODS
2.1. PRODUCT QUALITY
Product quality has the value in the target market where its ability to provide benefits and satisfaction, including things, services, organizations, places, people, and ideas [4].
Small businesses can get into problems in improving product quality because of the minimal role of society as subjects in development and still not at the level of welfare so it is very difficult to develop creativity and innovation [5].
2.2. QUALITY OF SERVICE
Identification of human capital, can be seen with the actors or stakeholders involved and assess their interests in the system in improving the quality of services produced to identify parties directly, classify related parties based on interests, comply with related party regulations in the use of economic resources local area [6].
Service quality is a customer long-term cognitive evaluation of the delivery of a company's services which has five dimensions, among others : Direct Evidence (Tangibles), Reliability (Reliability) the company's ability to provide services as promised accurately and reliably, Responsiveness is a policy to help and provide fast (responsive) and appropriate service to customers by delivering clear information Assurance is knowledge of politeness, and the ability of company employees to foster a sense of trust from customers in the company. It is a sincere and individualized or personal attention given to customers by trying to understand consumer desires [2].
2.3. PRICE
Price sometimes refers to the quantity of payment demanded by sellers of goods or services, not the amount that is ultimately paid. This quantity demanded is often called the asking or selling price, whereas the actual payment may be called the transaction price or traded price [7].
Prices are all forms of monetary costs sacrificed by
consumers to obtain, own, utilize a number of combinations of goods and
services from a product [8].
2.4. COST
Production costs determine the amount of the selling price of a product or service which will later affect the amount of profit earned. As stated by Mulyadi in his book cost accounting, states that production costs affect operating profits [9].
The application of standard costs can encourage company executives and supervisors to increase the efficiency and effectiveness of the production process to achieve predetermined standards. Standard costing can provide guidelines for knowing the costs that should have occurred in the production process [10].
2.5. RESPONSIVENESS
Service responsiveness provides the ability to service accurately and the ability to be trusted (dependably on time (on time) without making the slightest mistake [11].
The purpose of raw material inventory is to guarantee responsively to ensure the availability of raw materials at an optimal level so that the production process can run according to plan at minimum cost levels [2].
2.6. CONCERN
With the correct purpose of a business being done, it will increase enthusiasm or increase awareness in directing behavior to achieve goals, both personal and organizational [12].
Reformers and government agencies play a role in changing the face of the local landscape in an area in order to improve the socio-economic quality that can improve the economy of a region. With concern in delivering information obtained programmatically, socio-economic mapping has been programmed to provide solutions in improving the community's economy [13].
In business development, Micro and Small Enterprises (MSEs) can become crackers or what are commonly called reformers. At the beginning of the 21st century, Indonesia was marked by traditional businesses that were timeless and still needed change and concern in serving consumers [14].
2.7. CONCEPTUAL FRAMEWORK
From the literature review and previous research, 6 determinants
of elements of consumer interest in the services of the Tebing Tinggi Business
Clinic foster partners were derived, namely Product Quality (X1),
Service Quality (X2), Price (X3) and Cost (X4),
which were identified with Service, namely Responsiveness. (Y1) and
Concern (Y2).
Figure 1: Conceptual Scheme
2.8.
RESEARCH
HYPOTHESIS
Based on the
problem formulation that has been described above, it is suggested that there
is a simultaneous relationship between elements of customer interest (product
quality, service quality, price, and cost) in meeting service needs
(responsiveness, care) of SMEs assisted by Klibi Tebing Tinggi in canonical
analysis.
2.9.
OPERATIONAL
DEFINITION OF RESEARCH VARIABLES
In this study, there are six types of
variables. However, as previously explained, in the canonical analysis there is
no difference in the types of variables. The variable of consumer interest (X)
consists of Product Quality (X1), Service Quality (X2),
Price (X3), Cost (X4) and Service (Y) namely
Responsiveness (Y1), Concern (Y2).
3. RESULTS AND DISCUSSIONS
3.1. RESEARCH LOCATION
The location of the research taken in this study is the consumers of UMKM assisted by KLIBI which are spread throughout the Tebing Tinggi City area. Researchers also took secondary data regarding an overview of the location of the Tebing Tinggi City Trade Office, which is located on Jl. Gunung Leuser No.1 Tebing Tinggi.
3.2. POPULATION AND SAMPLE
Population consisting of objects / subjects that have
certain qualities and characteristics that are determined and then draw
conclusions. The population taken for consumers from SMEs assisted by KLIBI
Tebing Tinggi is 200 loyal consumers of assisted MSMEs starting from 2013 to
2017 productively. Sample selection
is done by purposive sampling where the researcher determines certain
characteristics that are considered to have a relationship with the population.
Researchers chose a sample of consumers based on the activeness of consumers
who were classified as loyal and interested in service and understood the
marketing concept of SMEs assisted by Klibi Tebing Tinggi so that the
researchers determined 100 consumers.
3.3. TYPES AND SOURCES OF DATA
Sources of data in this study were conducted using primary data and secondary data. Primary data sourced from research respondents were obtained based on the results of questionnaires and interviews related to elements of customer interest and fulfillment of customer service needs, while secondary data was obtained regarding the general description and results of library studies which were used to support relevant theories.
3.4. TECHNICAL DATA ANALYSIS
Canonical correlation analysis is a multivariate model that studies the relationship between a set of dependent variables and a set of independent variables. The data characteristics for canonical correlation are metric data, namely interval or ratio data. In the linear combination that has the largest correlation, a linear combination pair with the largest correlation value will be sought among all uncorrelated pairs. The general form of the canonical function is as follows:
Y1 + Y2 = X1 + X2 + X3 + X4
(dependent variable metric set) (independent variable metric set)
So that it can be simplified:
Responsiveness + Concern = Product Quality + Service Quality + Price + Service
3.5.
BASIC ASSUMPTIONS OF CANONICAL CORRELATION TEST
Canonical correlation is a multivariate model that examines the relationship between a set of dependent variables and a set of independent variables. Therefore, it is the same as other multivariate models, it is necessary to test the data. Testing the canonical correlation assumption that must be done is:
1) Outlier Test
2) Multivariate Normality Test
3) Linerity Test
3.6. CANONICAL CORRELATION MODEL TEST
The purpose of testing this canonical correlation model is to ensure that the results obtained are accurate. This test is done by:
1) Dimension Reduction Analysis
2) Eigenvalue and Canonical Correlation
3)
Multivariate Test of Significance
3.7.
OVERVIEW OF
TEBING TINGGI BUSINESS CLINIC
Tebing Tinggi
Business Clinic (KLIBI) is as one of the barometers of entrepreneurial
development in Tebing Tinggi is a solution for all MSMEs in Tebing City who
have problems in increasing entrepreneurship. In developing the Tebing Tinggi
economy, it takes a unity between the MSMEs and the government and other
external parties to be able to market products to other areas, both Tebing
Tinggi and outside Tebing Tinggi. KLIBI is a formation initiated by the Mayor
of Tebing Tinggi Mr. Ir. Umar Zein Hasibuan, MM, for the next, a collaboration
was formed between the Tebing Tinggi Kouperindag Agency and the Faculty of
Economics and Business, University of Sumatra. With the existence of KLIBI, it
is hoped that it will be able to provide a new repertoire in product nuances,
packaging, marketing and the creation of an online trading concept that focuses
on the superior products of Tebing Tinggi. The inauguration of KLIBI Tebing
Tinggi was carried out at Balai Kartini Building on October 23rd,
2014 which was directly carried out by the Mayor of Tebing Tinggi as well as
several motivations by several other community leaders. On this occasion, a
Memorandum of Understanding (MOU) was held between the Mayor of Tebing Tinggi
as the City Government of Tebing Tinggi and the KLIBI Tebing Tinggi consultant
and supervision team represented by the Dean of the Faculty of Economics and
Business, University of North Sumatra, Prof. Dr. Azhar Maksum. Thus KLIBI
Tebing Tinggi is a solution to entrepreneurship that occurs in Tebing Tinggi
City. For the future time, business supervision will be carried out for all who
are members of KLIBI Tebing Tinggi.
Programs and
activities that will be carried out by KLIBI are strived to develop its members
through training for MSEs who are members of KLIBI such as Business Training
both in all modern aspects so that later they will visit culinary tours in
other cities to see, feel and assess how all marketing concepts are made in the
city so that it can provide inspiration to increase business innovation.
Partnership patterns will be formed through collaborative activities between
entrepreneurs who have been successful in doing business and also other
entrepreneurs who want to collaborate with entrepreneurs in Tebing Tinggi City.
To improve the quality of MSMEs, KLIBI certainly needs to improve how KLIBI
partners' services to services with consumers to achieve optimal results of
business continuity.
3.8.
RESULTS OF
CANONICAL DATA INTERPRETATION
Because there are
two dependent variables and four independent variables, if the smallest number
is taken, it is the number two. Thus, two Canonical Functions will be formed
Eigenvalues
and Canonical Correlations
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Root No. Eigenvalue Pct. Cum. Pct. Canon Cor.
Sq. Cast
1 60.87663 99.59030 99.59030 .99189 .98384
2 .25043 .40970 100.00000 .44752 .20028
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Dimension Reduction Analysis
Roots Wilks L. F Hypoth. DF Error DF Sig. of F
1 TO 2 .01292 183,21013 8.00 188.00 .000
2 TO 2 .79972 7.93044 3.00 95.00 .000
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Two Canonical
Functions are shown in the Root No section, with the canonical correlation
number (CANON COR) for Function 1 being 0.98384 and Function 2 being 0.2028.
When seen in the Sig. of F, which tests the significance of CANONICAL FUNCTION,
it can be seen that Function 1 and 2 have a significant number of 0.000.
From these
results, it can be seen that the number of significance functions 1 and 2 is
below 0.05, so it is simultaneously considered unable to be processed further.
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Multivariate Tests of Significance (S = 2, M =
1/2, N = 46)
Test Name Value Approx. F Hypoth. DF Error DF
Sig. of F
Pillais 1.18412 34.46914 8.00 190.00 . 000
Hotellings 61.1270
7 710.60218 8.00 186.00 .000
Wilks. 01292
183,21013 8.00 188.00 .000
Roys .98384
Note .. F statistics for WILKS 'Lambda is
exact.
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Meanwhile, if
tested together with the test name: Pillais, Hotellings and Wilks for the Sig.
of F for all three procedures are below 0.05 which is 0.00. Thus, if combined
together, the canonical function 1 and canonical function 2 are significant and
can be processed further.
There is a
difference between individual and collective (collective) testing. For that,
you can see the CANONICAL CORRELATION figures in the Eigenvalues
and Canonical Correlations table, with the numbers:
1)
CANONICAL
CORRELATION function 1 is 0. 98384
2)
CANONICAL
CORRELATION function 2 is 0. 20028
In the limit of
0.5 for the correlation strength of two variables, function 2 has a low
canonical correlation number, so it can be issued for further analysis. Thus,
only function 1 will be analyzed further, because besides being significant
individually and collectively, it also has a high canonical correlation number.
3.9.
DISCUSSION
A collection of
several variables (Canonical variates) that form a variate where in this case the
dependent variate is Y1: Responsiveness, Y2: Concern, and
independent which has X1: Product Quality, X2: Service
Quality, X3: Price and X4: Cost. There are two ways to
measure canonical variates:
Canonical
Wights
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Correlations between DEPENDENT and canonical
variables
Function No.
Variable 1 2
Y1 1.00000 -.00091
Y2 .70125 .71291
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Variance in dependent variables explained by
canonical variables
CAN. VAR. Pct Var DEP Cum Pct DEP Pct Var COV
Cum Pct COV
1 74.58777 74.58777 73.38234 73.38234
2 25.41223 100.00000 5.08952 78.47186
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Raw canonical coefficients for COVARIATES
Function No.
COVARIATE 1 2
X1 -.73910
6,03549
X2 .32368 .47426
X3 -.97103
-1.42279
X4 1.68111
-5.93822
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By not paying
attention to function 2 (the second column of numbers), you can see a row of
correlation numbers between each variable and its variables. For the dependent
variable, the two correlation numbers are equally high, because it is above
0.5, namely 1 and 0.70125. Whereas for the independent variable (covariates),
the correlation number above 0.5 is X4: Cost
Canonical
Loadings
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Y1 1.00000
-.00091
Y2 .70125 .71291
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Variance in dependent variables explained by
canonical variables
CAN. VAR. Pct Var DEP Cum Pct DEP Pct Var COV
Cum Pct COV
1 74.58777
74.58777 73.38234 73.38234
2 25.41223
100.00000 5.08952 78.47186
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Raw canonical coefficients for COVARIATES
Function No.
COVARIATE
1 2
X1 -.73910
6,03549
X2
.32368 .47426
X3
-.97103 -1.42279
X4 1.68111
-5.93822
Without paying
attention to function 2 (the second column of numbers), you can see a row of
canonical loadings between each variable and its variable (function). For the
dependent variable, the two canonical loadings numbers are the same, because
above 0.5, namely 1 and 0, 70125. For independent variables (covariates), the correlation numbers above 0.5 are all that
is X4: Cost.
4. CONCLUSIONS AND RECOMMENDATIONS
From the output
of canonical weight or canonical loading, it can be said:
1)
There
is a significant and significantly correlated relationship between the
dependent variates, namely responsiveness and care with the independent variate
variables, namely product quality, service quality, price and cost.
2)
However,
of the 4 independent variables, there is only one variable that has the closest
relationship, namely cost
3)
A
positive sign on the cost variable indicates that the consumers of Klibi Tebing
Tinggi's MSMEs are very familiar with Klibi Tebing Tinggi's MSME products
because the affordable costs to buy thus strengthen the responsiveness and
concern of consumers to buy products.
MSMEs assisted by
the Tebing Tinggi Business Clinic need to consider:
1)
Product
Quality, Service Quality and Competitive Prices to improve the quality of
products and develop into digital business
2)
The
Tebing Tinggi City Government needs to improve the quality of product
endorsement among Tebing Tinggi and Indonesian consumers by increasing business
promotion and international exhibitions
3)
Entrepreneurship
training needs to be done to increase the mindset of a business that is out of
the box on a regular basis
4) For the next researcher can improve the quality of research by adding variables and research models.
SOURCES OF FUNDING
This research received no specific grant from any funding agency in the public, commercial, or not-for-profit sectors.
CONFLICT OF INTEREST
The author have declared that no competing interests exist.
ACKNOWLEDGMENT
This research is the output
of a novice lecturer research grant with a research contract for 2020 Fiscal
Year between North Sumatra region I higher education service institutions and
Universitas Al Azhar Number: 250 / LL1 / PG / 2020 and a Research Contract for
the 2020 Fiscal Year between the Institute for Research and Community Service,
Universitas Al Azhar and researchers for the 2020 Fiscal Year Number: 02 / UA /
LPPM / P / VII / 2020.
REFERENCES
[3]
Https://Tebingtinggikota.Bps.Go.Id/,
“No Title,” Sosial Kependudukan, 2017.
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