RESEARCH IN MANAGEMENT AND ACCOUNTING
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Lindawati, & Pradana EXPERIENTIAL MARKETING AND EXPERIENTAL VALUE.
HOW DOES
IT IMPACT ON CONSUMER REPURCHASE INTENTIONS
Beatrice Tan Yanto 1 Tuty Lindawati 2 Dominicus Wahyu Pradana 3 Business Faculty.
Management Department.
Widya Mandala Catholic University Surabaya- Indonesia wahyupradana@ukwms.
ARTICLE INFO
Article history:
Received : 4 April 2020 Revised : 20 April 2020 Accepted : 1 May 2020 JEL Classification:
Key words:
Experiential Marketing.
Experiential Value.
Repurchase Intenion.
DOI:
https://doi.
org/10.
33508/rima.
ABSTRACT
Today's competition is very intens, with many restaurants, cafes and food court popping up so that competition arises from the side of sellers and consumers.
Today's consumers are more likely to get bored so quickly that they will use all existing facilities such as information technology to get information about what they want to Marketers must have a positive strategy in experiential marketing to create a good experience for consumers.
This study aims to determine the effect of experiential marketing on repurchase intention through experiential value for consumers of Pasa Rame Restaurant in Surabaya.
Respondent samples used were 200 respondents who are the consumers of Pasa Rame Restaurant in Surabaya.
Sampling of respondents using non probability sampling by purposive sampling.
The data collection tool used is a The data analysis technique used is the Structural Equation Modelling using the Lisrel program.
The results of this study state that experiential marketing has a positive and significant effect on experiential value, experiential marketing has a positive and significant effect on repurchase intention, experiential value has a positive and significant effect on repurchase intention and experiential marketing has a positive and significant effect on repurchase intention through experiential value for consumers of Pasa Rame Restaurant in Surabaya
INTRODUCTION
the emergence of many restaurants, it The allows many choices for consumers.
infrastructure built, such as roads, can Besides that, with the development of facilitate access from one place to another.
increasingly sophisticated technology, it The better the infrastructure, the more makes it easier for promotional media so entrepreneurs are making restaurants, that this makes it even easier for especially in Surabaya.
The need for food consumers to choose a restaurant.
The and drinks is a basic human need, but for following is data on the number of now, it is not just eating when in a restaurants or restaurants in Surabaya:
restaurant but for hangouts, meeting places, and even for taking selfies.
With Table 1 Number of Restaurants in Surabaya Year Amount (Uni.
RESEARCH IN MANAGEMENT AND ACCOUNTING Vol.
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Lindawati, & Pradana Source: http://jatim.
significant effect in mediating experiential Many implemented experiential marketing to create an intention to return to consumption by involving experiential (Nigam.
Astari Pramudana, 2.
Sense experience .
ense marketin.
has an impact on satisfaction and repurchase intention.
consumers with an extraordinary taste experience (Razi and Lajevardi, 2.
Schmitt .
divides experiential marketing into five dimensions, namely sense .
sensory experienc.
, feel .
ffective experienc.
, think .
reative cognitive experienc.
, act .
hysical expertise, behavior, and lifestyl.
, and relate .
ocioidentity knowledge of relationship.
With reference communities or culture.
According to Andreani .
, experiential marketing is a marketing concept that not opportunities for customers to gain experience or benefits but also evokes emotions and feelings that are impacted on marketing, especially sales.
The experiential value view is based on existing interactions, including direct use or appreciation of consumers' products and services (Rosanti et al.
, 2.
From a managerial perspective, the value of experience is an essential consideration in the economy of recent experiences (Varshneya et al.
, 2.
According to Nigam .
, and extrinsic and intrinsic value from experiential value includes four dimensions: consumer return on investment, service excellence, aesthetic, and playfulness.
One indicator of a company's success is determined by the consumer's continued repurchase interest (Astari and Pramudana.
The Based on Table 1, the number of restaurants/restaurants from 2013 to 2014 has decreased by 2.
In 2014-2015, the number of restaurants/restaurants in Surabaya had increased significantly, namely by 86.
16%, and in 2016 also increased although not so significant.
This shows that many restaurants started opening in 2015.
The growth rate shows an increase, but the change in restaurant performance is stagnant, which means no increase.
According to the Food and Beverages experienced closures or went out of business, but this condition was covered up because there were new openings (Surya.
id, 2.
The problem that occurs is due to the requirements of intense competition from the marketer's side and from the consumer, namely consumers who are easily bored.
More and more new restaurants are opening with massive promotions.
Marketers have to think about solutions to increase sales and make consumers want to return to the Restaurants must be able to keep customers from coming back to continue to maintain their business.
One solution that marketers can do is to provide positive experience benefits to consumers so that consumers have the intention to return to the restaurant.
Marketers can use the science of experiential marketing, which means .
xperiential consumers have the intention to return.
Experiential marketing and experiential value are concepts that are positively related (Schmitt, 1.
Analysis of experiential value impacts purchases (Wong and May in Astari and Pramudana.
Astari and Pramudana .
state that experiential value has a positive and RESEARCH IN MANAGEMENT AND ACCOUNTING Vol.
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Lindawati, & Pradana by Pasa Rame based on managerial and It can create repurchase intention through experiential value among Pasa Rame consumers in Surabaya, so that the title of this research is The Effect of Experiential Marketing on Repurchase Intention Experiential Value to Consumers.
Pasa Rame in Surabaya.
experience that customers receive from service is another thing that can increase repurchase intentions (Chang et al.
, 2.
Consumers' decisions about buying back services from companies depend on their past experiences, and consumers will see the current situation and conditions (Hellier et al.
, 2.
Nowadays, consumers come to restaurants not just to eat, but can be used for other activities so that restaurants must provide experiences for consumers.
Moreover, now a restaurant or cafe is a place to relax so that the mind and spirit can calm down after a tiring day of Pasa Rame is a new restaurant with a food court theme and is located in a Pasa Rame itself is a restaurant owned by the East Java Boga Group.
Besides having a creative piece, namely the food court theme.
Pasa Rame also uses local music for its cuisine, which means that food, from appetizers to desserts and drinks, is authentic Indonesian local food.
The slogan used by the Rame is "Foodventure Yuk," which means Pasa Rame wants to give the impression of a food adventure because the food sold is different from different layouts.
By using a creative theme.
Pasa Rame tries to provide a new atmosphere so that consumers don't get bored because more than ten foods are sold with a food court The food dishes offered are fried rice, gejrot tofu, crab noodles, and many There are modern herbal medicine, coffee pull, young coconut, and many other choices as for drinks.
The dessert menu offered is Ice Doger.
Pontianak Ice.
Cendol Ice.
Moonlight, and there are still different dessert menus.
Pasa Rame is visited by many students, students, and Besides being used for young people.
Pasa Rame is also a culinary destination for families to eat and spend time with family to enjoy holidays.
Pasa Rame is located in two Surabaya malls, namely Pakuwon Mall and Tunjungan Plaza 6.
This research focuses on the experiential marketing approach applied THEORICAL BASIS Experiential Marketing Schmitt argues that experiential marketing is the ability of a product to offer emotional experiences to touch consumers' hearts and feelings (Schmitt, 1999: 33-34.
in Saraswati, et al.
, 2.
Experiential marketing is a marketing concept that aims to form loyal customers by touching customer emotions by providing a positive feeling for their services and products (Kertajaya.
, 2010: 23.
in Saraswati, et al.
, 2.
Experiential marketing is broadly defined as any form of customer-focused marketing activity that creates a connection to the customer.
Based on this view, experiences can be by-products, communications, in-store interactions, sales relationships, events, and the like (Schmitt, 2.
According to Schmitt .
, experiential marketing has five Namely, sense, feel, think, act, and relate.
Experiental Value Holbrook .
4, in Mathwick.
Malhotra, and Rigdon, 2.
states that "experiential value has been defined as perceptions and interactions involving appreciation of goods and services.
These interactions provide the basis for the relativistic preferences held by the individuals involved ".
Mathwick et al.
1, in Nigam, 2.
develop a typology of experiential value and reveal that experiential value offers extrinsic and intrinsic benefits that can have a long-term impact on RESEARCH IN MANAGEMENT AND ACCOUNTING Vol.
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Lindawati, & Pradana " According to Schiffman and Kanuk .
8: .
, repeat purchases usually indicate that the product is according to consumer desires, and consumers are willing to use it again and in larger quantities.
According Kolter Armstrong .
4: .
, repurchase intention is a post-purchase consumer Post-purchase consumer action is influenced by consumer satisfaction and dissatisfaction so that when consumers feel satisfied with the product or service provided, the consumer will make a repeat purchase.
However, if consumers are not happy with the products or services provided, they will not buy them According to Oliver .
5: .
, repurchase intention is a result of the influence of consumer attitudes after using the product or service offered, and this will be used by product or service providers to improve their performance consumers' minds.
The extrinsic value of investment and service excellence.
Meanwhile, the intrinsic value of experiential value has aesthetics and Repurchase Intention The beliefs and attitudes formed at the post-purchase stage will directly influence future purchase intentions, oral communication, and complaint behavior.
These beliefs and attitudes can be in postdecision regret and consumer satisfaction or dissatisfaction (Engel et al.
, 1995: 209.
According to Zeithaml.
Berry, and Parasuraman .
, repurchase intention occurs when consumers make repeated purchases of the same product or service.
Mowen and Minor .
5: .
also state that consumers make repeat purchases not based on unique feelings about a product but only make repeated purchases.
Hellier et al.
stated that "repurchase intention.
The individual's judgment about buying a designated service again from the same company takes into account his or her current situation and likely circumstances.
According to Jones et al.
0, in Jones and Taylor, 2.
, repurchase intention is "customer's aim to maintain a relationship with a particular service provider and make his or her next purchase in the category from this service Research Hypothesis H1: Experiential marketing has a positive effect on experiential value.
H2: Experiential marketing has a positive effect on repurchase intention.
H3: Experiential value has a positive effect on repurchase intention.
H4: Experiential marketing has a positive effect on repurchase intention through experiential value.
Experiential Marketing Repurchase Intention
Experiential Value Figure 1 Research Model
METHOD
This study uses a type of causality research because it aims to examine the RESEARCH IN MANAGEMENT AND ACCOUNTING Vol.
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Lindawati, & Pradana 79%, while respondents aged> 27-38 is 5% and respondents aged> 38-49 are Respondents aged> 49-60 are the least respondent's age, which is only 2%.
In line with most respondents' age is 17-27 years old, this is following the results that most of the respondents are students, with a total of 73%.
Meanwhile, respondents for civil servants, private employees, selfemployed workers, and others are 1%, 13%, 8.
5%, and 4.
causal relationship between two or more The objects used in this study are consumers of Pasa Rame Restaurant in Surabaya who have visited the restaurant in the last six months and are over 17 years old.
The sample is determined by the nonprobability sampling technique using purposive sampling.
The number of pieces used was 200 respondents who were taken from the total population by selecting the sample based on the opinion of Hair et al.
, namely the number of indicators as much as 29 times 5.
This study consisted of quantitative data, namely, gender, age, and occupation.
The analysis technique used to perform data processing in this study is structural equation modeling (SEM) using the Lisrel Measurement Model Evaluation Here is a table Overall Model Evaluation of the research that has been Table 2 shows that of the eight measurements used, not all of them show a good fit, but only GFI and AGFI do not offer good fit results.
However, this model can still be used in research.
Validity and reliability testing has been carried out, and it shows that each indicator of each variable is valid, which means that all hands can be used.
And for the reliability test, the result is each variable is reliable.
RESULT
Descriptive Findings Based on the research results, the number of respondents based on gender is 49% male and 51% female.
More respondents aged 17-27 years, namely Table 2 Overall Model Evaluation Goodness of Fit Index Cut off Value Result Information 0,74 GFI
Un Fit
Ou 0,9 AGFI
0,70
Un Fit
Ou 0,9 NFI
0,95
Good Fit
Ou 0,9 0,97 IFI
Good Fit
Ou 0,9 0,97 CFI
Good Fit
Ou 0,9 0,94 RFI
Good Fit
Ou 0,9 RMSEA
< 0,08
0,071
Good Fit
Normed Chi Square 1,99 Good Fit
1 O ycUycU /df O 5
Hipotesis Table 3 Hypotesis Test Result
Hubungan Loading t-Value Variabel
Factor
EM -> EV
1,61
7,53
EM -> RI
1,86
2,10
EV -> RI
0,60
2,43
EM -> EV-> RI
0,97
2,40
Cut-off Keterangan 1,96 1,96 1,96 1,96 Signifikan Signifikan Signifikan Signifikan influence on experiential value.
The feel dimension, which is part of experiential marketing, can create a consumer return on investment (CROI), which is part of experiential value.
Other supporting Hypothesis 1 shows significant results and following the research that has been conducted by Astari and Pramudana .
, who prove that experiential marketing has a substantial and positive RESEARCH IN MANAGEMENT AND ACCOUNTING Vol.
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Lindawati, & Pradana consumer return on investment (CROI), which is part of experiential value.
Furthermore, this can affect consumer repurchase interest, indicated by the desire to invite relatives and closest people to visit again.
Other supporting research results are the research results conducted by Kusuma .
, which states that experiential marketing has a significant and positive effect on repurchase intention through experiential research results are the research results by Kusuma .
, which proves that experiential marketing has a significant and positive effect on experiential value so that the higher the experiential marketing, the higher the consumer's experiential Nigam .
also states that experiential marketing has a significant and positive effect on experiential value.
This research also support theory from Schmitt .
that state experiental marketing and experiental value was an inseparable concept and have a positive Hypothesis 2 shows significant results and, following the research that has been conducted by Astari and Pramudana .
, states that experiential marketing has a positive and significant effect on repurchase intention.
Other supporting research results, namely the results of research conducted by Razi and Lajevardi .
, found that experiential marketing sense impacts repurchase In other words, restaurants provide consumers with an extraordinary taste experience.
Hypothesis 3 shows significant results and, following the research that has been conducted by Astari and Pramudana .
, stated that experiential value has a significant positive effect on repurchase intention.
This means that the higher the application of experiential value is carried out, the more positive the repurchase intention is created by Other supporting research results are research conducted by Chang et al.
, which states that experiential value positively affects repurchase According to Chang et al.
by maintaining quality and use value, increasing consumer confidence will retain consumers.
Kusuma .
stated that experiential value has a positive and significant effect on his research.
Hypothesis 4 shows significant results and follows the research conducted by Astari and Pramudana.
, which states that feel which is part of experiential marketing has created a CONCLUSIONS From the results of hypothesis testing and discussion that has been described in the previous chapter, it can be concluded that experiential marketing has a positive and significant effect with a substantial direct effect on Experiential Value.
Experiential Marketing has a positive and significant impact, but the immediate effect is weak on Repurchase Intention.
Experiential Value has a positive and significant impact, with a substantial direct effect on Repurchase.
Experiential Marketing has a positive and Repurchase Intention through Experiential Value.
The influence of the intervening variable .
ndirect effec.
of Experiential Value is Suggestions For further researchers, it is better if in conducting research using research objects permitted by the manager to distribute questionnaires directly at the place of the research object so that the results obtained become more accurate and concrete.
This research is expected to provide good views or ideas on the Pasa Rame Restaurant.
The following are suggestions put forward at Pasa Rame Restaurant:
A Experiential marketing that has been carried out by Pasa Rame Restaurant is useful, such as attractive design, diverse food, and is located in a strategic area.
RESEARCH IN MANAGEMENT AND ACCOUNTING
Vol.
3 No.
1 June 2020 Yanto.
Lindawati, & Pradana Experiential Marketing.
Customer Satisfaction, and Behavioral Intention: A Study Food Beverage Businesses.
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Jumlah Restoran/Rumah Makan Menurut Kabupaten/Kota di Provinsi Jawa Timur, 2013 - 2016.
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id/dynami ctable/2017/10/17/137/jumlah -restoran-rumah-makanmenurut-kabupaten-kota-diprovinsi-jawa-timur-2013--2016.
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However.
Pasa Rame Restaurant is still only in 2 places, so it is better if the manager has more branches easily accessible The experimental value that consumers get is good.
Still, the manager should offer discounts, consumers want to make repeat purchases because the prices shown by Pasa Rame Restaurant are quite expensive with not many So that by giving attractive discounts, consumers will be more frequent to make purchases again.
Pasa Rame Restaurant can also take advantage of the convenience of payment through applications currently booming such as Go-pay and Ovo, in filling up member consumers so that consumers don't have to queue to top up their balances when eating at Pasa Rame Restaurant.
Pasa Rame Restaurant can work with the Surabaya city government in developing its culinary business because currently, the government is planning to create a creative economy, especially in the culinary Pasa Rame Restaurant can work with the government, for example, by using partners from MSMEs government and making Pasa Rame Restaurant a place to make work visits and culinary tours from government agencies from outside the Surabaya area.
REFERENCE