e-ISSN 3047-874X Volume 2 No 2 November 2024 https://dhsjournal.
id/index.
php/ijospat/index Empirical Study: Brand Performance and Consumer Satisfaction as Determinants of Brand Switching Dewi Ayudya Setyati*.
Ahmad Dirgantara Universitas Dirgantara Marsekal Suryadarma.
Jl.
Halim Perdana Kusuma No.
RT.
1/RW.
Halim Perdana Kusumah.
Kec.
Makasar.
Kota Jakarta Timur.
Daerah Khusus Ibukota Jakarta 13610.
Indonesia DOI.
https://doi.
org/10.
61656/ijospat.
ABSTRACT:
In the current era of globalization, where changes in technology and the flow of information are increasingly advanced and rapidly encouraging the emergence of competition in the business world, consumer needs are not limited to the main function that can be provided for a product .
rimary deman.
, but develop into secondary needs .
econdary primar.
, namely the desire for a brand.
The purpose of this research is to determine the influence of brand performance on brand switching on Gudang Garam (GG) cigarettes, to determine the influence of brand performance on the level of brand satisfaction on GG cigarettes and to determine the influence of the level of brand satisfaction on brand switching on GG cigarettes.
The research variables are brand performance, brand satisfaction and brand switching and the variable measurement scale used in this research is an interval scale, while the variable measurement technique uses the semantic differential technique.
The sample for this research was people who bought and consumed GG brand cigarettes in East Jakarta, totaling 110 respondents.
Analysis technique using One Step Approach to SEM (Structural Equation Modelin.
Based on the test results, the hypothesis which states that brand performance and the level of brand satisfaction has a negative influence on brand switching is proven to be significant, while the hypothesis which states that brand performance has a positive influence on brand switching is also proven to be significant.
Keywords: Brand performance, brand satisfaction, brand switching decisions.
Gudang Garam.
Sampoerna.
Article info: Received: 09 September 2024.
Revised: 26 October 2024.
Accepted: 27 November 2024 Recommended citation:
Setyati.
& Dirgantara.
Empirical Study: Brand Performance and Consumer Satisfaction as Determinants of Brand Switching.
Indonesian Journal of Sustainability Policy and Technology, 2 .
, pp 132-149.
This is an open-access article.
Indonesian Journal of Sustainability Policy and Technology is a multidisciplinary journal licensed under the Creative Commons Attribution 4.
0 International License.
*Corresponding author: Dewi Ayudya Setyati: 1481071131@students.
Empirical Study: Brand Performance and Consumer Satisfaction as Determinants of Brand Switching Dewi Ayudya Setyati.
Ahmad Dirgantara
INTRODUCTION
In the current era of globalization, where changes in technology and the flow of information are increasingly advanced and rapidly encouraging the emergence of competition in the business world, consumer needs are not limited to the main function that can be provided for a product .
rimary deman.
, but develop into secondary needs .
econdary primar.
, namely the desire for a brand.
The intense anti-smoking campaign carried out by a number of elements of society in the last 2 years has not affected the financial performance of cigarette manufacturers.
Over the past year, their sales figures have increased, which means the cigarettes they sell are getting bigger.
The cigarette industry in Indonesia experienced ups and downs, in 1998, which was the beginning of the crisis period, the cigarette industry actually reached its peak production.
During the crisis, the cigarette industry workforce continued to increase, but this was not followed by an increase in production.
This condition has an impact on reducing the productivity of cigarette industry workers.
However, labor productivity in the cigarette industry during the crisis period was no different when compared to labor productivity before the crisis period.
Productivity per company during the crisis period was actually higher compared to before the crisis period.
The intense competition between cigarette manufacturers can be seen from the large number of cigarette products circulating on the market.
This competition also has an impact on the sales and market share of Gudang Garam (GG) cigarettes in Table 1.
Based on data.
PT GG recorded revenue from domestic and foreign sales in 2023 of IDR 118,953 T.
This revenue decreased from the previous year .
This revenue figure turns out to still be above the revenue recorded by PT Hanjaya Mandala Sampoerna (HMS), namely IDR 57,816 T.
The market share in 2023 GG's sales position .
2%) is below HMS .
58%).
PT GG's cigarette market share (Table .
experienced a downward trend from 2021 of 27.
1% and 2022 of 25.
The same thing is experienced by HMS, where the market share in 2021 and 2022 remains 28% and decreases in 2023.
The possibility of the decline in the market share of these two large cigarette companies is caused by the combined impact of COVID19 and excise rates (Winarto, 2.
Cigarette sales performance is overshadowed by the ban on retail cigarette sales (Pratomo, 2.
Table 1.
Market Share
Brand
HMS
Source: Various news sources with the keywords AuMarket Share GG / HMS yearAy Table 2.
Cigarette Income Brand Rp 124,881 T Rp 124,683 T HMS Rp 98,900 T Rp 111,200 T Source: IDX Financial Statement and Financial Highlights GGRM 2024 Rp 118,953 T Rp 57,816 T The theory that links the level of brand satisfaction to brand switching is that consumers who are satisfied with one brand will not switch to another brand and vice versa (Yunaida, 2.
Meanwhile, according to Keller, brand performance shows how well the brand is ranked according to consumers' objective assessment of brand quality.
So, the better the brand performance, the lower the level of brand switching, and vice versa.
Djati & Darmawan .
and Mahendri & Munir .
state, the better the brand performance, the higher the level of satisfaction felt by consumers.
Brand Switching is a brand movement carried out by customers every time they use it (Liao et , 2.
Brand performance is related to the way a product or service meets consumer needs Brand performance refers to what is attached to a product and owned by a brand which makes it different from other products.
Brand performance shows how well the brand ranks according to consumer assessments.
Brand satisfaction is defined as the result of consumers' direct experience of brand performance (Karomah et al.
, 2.
Brand satisfaction indicates the intention to use a brand and shows consumer knowledge about the brand is getting better and then influences post-consumption evaluation and subsequent decisions.
Brand performance has a negative relationship with brand switching because the better the brand performance, the lower the level of brand switching (Mahendri & Munir, 2.
Indonesian Journal of Sustainability Policy and Technology.
Vol 2 No 2, 2024 page 132-149 Brand satisfaction has a negative relationship with the level of brand switching, because consumers' emotional dissatisfaction with a product can cause consumers to feel interested in switching brands (Oebit & Astini, 2.
Brand performance has a positive influence on brand satisfaction, because if brand performance is below expectations, customers are dissatisfied, and if performance exceeds expectations, customers are very satisfied or happy (Kotler, 2.
Previous research has been conducted on the factors that influence brand switching.
However, there are still important research gaps that have not yet been explored.
Several studies reveal that brand switching is carried out due to consumer dissatisfaction and competitive products that can provide better service.
This research fills the existing research gap in the absence of specific research that proves the switching of cigarette brands, especially between GG and HMS cigarettes in the East Jakarta This research is important to carry out considering the importance of market segmentation, both in terms of products and in terms of sales areas.
Based on this background, the aim of this research is to prove the influence of brand performance on brand switching and the level of brand satisfaction for GG cigarettes in East Jakarta.
Apart from that, it also aims to prove the influence of the level of brand satisfaction on brand switching of GG cigarettes.
This research provides theoretical contributions related to marketing theory.
Practically, this research is useful for entrepreneurs who are experiencing consumer migration due to dissatisfaction with the company's products and branding problems.
LITERATURE REVIEW
Marketing Previously, the market was defined as a place to exchange goods between buyers and sellers.
But now the term market is used by economists as a collection of buyers and sellers who carry out transactions in certain types of products.
However, marketers view sellers as an industry, and buyers as a market.
Sellers and buyers are connected by four flows, namely: sellers send products/services and communications to the market.
in return, they receive money and information.
This relationship can be said to be a simple marketing system .
ee Figure .
Based on Figure 1, it can be concluded that the definition of marketing is a process by which a person or group obtains what they need and want, by creating and exchanging products and value with other people.
Figure 1.
Simple Marketing Systems Source: Kotler .
Marketing Management So far, many people think that marketing management is about finding enough customers for the company's current output.
But that view is too narrow.
However, today, marketing management is defined as the analysis, planning, implementation, and control of programs designed to create, build, and maintain profitable exchanges with target buyers to achieve marketing goals (Harris et al.
, 2.
The five concepts that underlie marketing activities are the production concept which assumes that consumers will like products that are easy to obtain and very affordable, therefore management must focus on improving production and distribution efficiency.
The product concept assumes that consumers will prefer products that offer the best quality, best performance, and are the most Therefore, an organization must devote energy to making continuous product This concept assumes that consumers will not buy enough of a company's products unless the company carries out sales and promotion efforts on a large scale (Harris et al.
, 2.
This Empirical Study: Brand Performance and Consumer Satisfaction as Determinants of Brand Switching Dewi Ayudya Setyati.
Ahmad Dirgantara concept is usually applied to unsought goods .
oods that buyers usually don't think about buyin.
The marketing concept says that achieving organizational goals depends on determining the needs and wants of the target market and satisfying customers more effectively and efficiently than competitors Social Insight Marketing Concept where organizations must determine the needs, wants and interests of the target market.
Furthermore, organizations must provide value to customers in a way that can maintain and improve consumer welfare (Jasmin et al.
, 2021.
Handayani et al.
, 2.
Product Life Cycle Like living things, products also have a life cycle called the Product Life Cycle (PLC).
According to PLC theory, from the time a particular type of product is introduced to the market until it disappears from the market again, there are five stages of the life cycle (Harris et al.
, 2.
In each life cycle, the product contributes different sales results and profits to the producer.
The four stages in the PLC are:
A Product Development Stage Starting when a company discovers and develops a new product idea during product development, sales go to zero and the company's investment costs pile up.
A Introduction Stage Introduction stage is a period of sales growth when new products are introduced in the market.
Starts running when a new product is launched on the market by a company.
Therefore, the product is still not widely known by the wider community.
So that the product is quickly recognized by consumers, the company will carry out promotions with incentives.
At this stage of the life cycle, the company does not yet face competition because there are no other companies producing the new A Growth Stage It is a period of market development and rapid increase in profits.
If consumers like the new product, the product will enter the growth stage.
During this time, the number of consumers who know about the existence of the product on the market and like it will increase.
A Maturity Stage As new products become popular as a source of profit, many other companies will emerge that will produce and market similar products.
Product competition becomes fierce, and profit levels will remain constant or decline as marketing expenditures increase to defend the product against On the other hand, the flood of similar products will make consumers more free to choose the products they like.
A Decline Stage Decline is a period when sales decline and profits decline.
The competitive atmosphere in the market will become fiercer when at the maturity stage new technology emerges that can produce similar, better products or substitute products at competitive prices.
As a result, demand for old products will decrease and the decline stage will begin to take place.
Figure 2.
Product life cycle concept Source: Harris.
Kotler.
Armstrong.
, & He.
Hongwei .
Principles of marketing.
Eighth European Edition.
Pearson.
Indonesian Journal of Sustainability Policy and Technology.
Vol 2 No 2, 2024 page 132-149 Brand Switching Brand Switching is a brand movement carried out by users every time they use it.
The level of brand switching also shows the extent to which a brand has loyal customers (Liao et al.
, 2.
According to Oebit & Astini .
brand switching behavior is brand switching behavior carried out by consumers for certain reasons, or also interpreted as consumers' susceptibility to switching to another brand.
Consumers who frequently switch brands in their purchases are of the variety seeking buying behavior type .
ee Figure .
Figure 3.
Types of consumer behavior Sumber: Xin-Jean et al.
Brand Performance and Brand Switching Brand performance is related to the way a product or service meets consumer needs functionally.
Product performance refers to what is inherent in a product and owned by a brand which makes it different from other products.
Brand performance shows how well the brand ranks according to consumers' objective assessment of brand quality.
According to Djati & Darmawan .
and Mahendri & Munir .
, consumer assessments of brand performance are related to direct experience with the product, while emotional assessments indicate the level of satisfaction with the brand.
When consumers are loyal to certain brands, consumers will actively choose the brand, engage with the brand and develop a positive attitude towards the brand (Jayawijaya et al.
, 2.
Consumers will not switch to another brand if the brand performance which includes product variations as well as packaging style and design can attract consumers to continue buying a particular brand.
So it can be concluded that brand performance has a negative relationship with brand switching, because the better the brand performance, the lower the level of brand switching.
In research conducted by Fatima & Billah .
The research results concluded that the better the performance of a brand, the lower the level of brand switching, and the higher the level of satisfaction with the brand, the lower the level of switching to other brands.
Between the performance of a brand and brand user satisfaction, there is a significant and quite strong relationship, so the better the brand performance, the higher the level of satisfaction with the brand felt by consumers.
H1: brand performance has a negative effect on brand switching Brand Satisfaction and Brand Switching Brand satisfaction is defined as the result of consumers' direct experience of brand performance.
Brand satisfaction indicates the intention to use a brand and shows consumer knowledge about the brand is getting better and then influences post-consumption evaluation and subsequent decisions.
According to Xin-Jean et al.
, the results felt by consumers in the form of satisfaction or dissatisfaction will influence the evaluation of alternatives based on consumption experience for the next brand selection decision process.
Oebit & Astini .
also stated that consumers' emotional dissatisfaction with a product can cause consumers to feel interested in looking for other brands outside the usual brand.
Brand switching decisions made by consumers occur because of the dissatisfaction that consumers receive after making a purchase (Oebit & Astini, 2.
Meanwhile, according to the research results of Djati & Darmawan .
and Mahendri & Munir .
, if the level of brand satisfaction is high, consumers will not switch to another brand.
So, it can be concluded that brand satisfaction has a Empirical Study: Brand Performance and Consumer Satisfaction as Determinants of Brand Switching Dewi Ayudya Setyati.
Ahmad Dirgantara negative relationship with the level of brand switching, because if the level of brand satisfaction is high, then the level of brand switching will be low.
At-Thariq et al.
produces a hypothesis which states that satisfaction has a significant negative effect on brand switching behavior.
The satisfaction variable describes a consumer's postpurchase response to a brand that is believed to be appropriate or that there is a match between what the consumer expects and the performance of the product he or she has received.
So, consumers will feel satisfied if the product performance matches what is expected and vice versa.
Dissatisfaction arises because consumer expectations are not the same or higher than the performance received from H2: brand satisfaction has a negative effect on brand switching.
Brand Performance and Brand Satisfaction Brand satisfaction is defined as the result of consumers' direct experience of brand performance.
Brand satisfaction indicates the intention to use a brand and shows consumer knowledge about the brand is getting better and then influences post-consumption evaluation and subsequent decisions.
Djati & Darmawan .
and Mahendri & Munir .
state that there is a significant and quite strong relationship between brand performance and brand satisfaction.
According to Kotler .
if brand performance is below expectations, customers are dissatisfied, but if performance meets expectations, customers are satisfied.
And if performance exceeds expectations, customers are very satisfied or happy, then it can be concluded that brand performance has a positive influence on the level of brand satisfaction, because the better the brand performance, the higher the level of satisfaction felt by consumers towards a brand.
H3: brand performance has a positive effect on brand satisfaction.
Figure 4.
Conceptual Framework Figure 4 shows the relationship between variables and indicators.
Brand performance has two indicators: product variety and style & design.
Brand satisfaction has two indicators: product quality and Brand switching has two indicators: other product availability and interest.
RESEARCH METHOD
Operational Definition Operational is a statement regarding the definition of boundaries and operational understanding of variables in research, both based on existing theory and empirical experiences.
This research uses three variables that have a cause-and-effect or causal relationship (Table .
Brand performance and brand satisfaction are free or independent variables, while the brand switching variable is an independent or dependent variable.
Indonesian Journal of Sustainability Policy and Technology.
Vol 2 No 2, 2024 page 132-149 Table 1.
Operational Definition Variables Operational Definition Indicators Brand Switching (Y) Brand switching behavior carried out by consumers for certain reasons, or also interpreted as consumers' susceptibility to switching to another brand (Oebit & Astini, 2.
Brand Performance (X.
Measurements: Likert Scale .
how well the brand ranks according to consumers' objective assessment of brand quality (Jayawijaya et al.
Availability of other products (Y.
Brand switching generally will not occur without first considering the availability of other brands.
Interest in other products (Y.
Consumers tend to consider other cigarette brands.
With the presence of many competitors, consumers have many brand choices Product Variety (X1.
is the diversity of products within a brand Packaging Style and Design (X1.
is one of the innovations that manufacturers must make to attract customer attention.
Measurements: Likert Scale .
Brand Satisfaction (X.
is the level at which brand performance estimates are in line with consumer expectations (Kotler.
A Measurements: Likert Scale .
A Product quality (X2.
is the quality of all the components that make up the product and is the customer's overall evaluation of the goodness of the performance of goods or Price (X2.
is the relationship between customer perceptions of the product which is determined by the difference between the customer's perception of the product and the nominal or selling price stated on the product Source: Reviews from previous research.
Sampling Technique The population in this study were people who bought and consumed GG brand cigarettes in East Jakarta.
The technique used is non-probability sampling, where this technique does not provide an equal opportunity for each element or member of the population to be selected as a sample.
Meanwhile, the sampling method is carried out by accidental sampling, namely a sampling technique based on anyone who happens to meet the researcher can be used as a sample.
The number of samples to be studied in this research was set at 110 people, as suggested by Hair et al.
, namely between 100-200 samples, is considered sufficient to be processed into multivariate analysis .
ncluding factor Analysis techniques The model used to analyze the data in this research is SEM (Structural Equation Modelin.
, which is a collection of statistical techniques that allow measuring a series of relatively "complex" relationships This complex relationship is built between one or several dependent variables and one or several independent variables.
For each dependent or independent variable, a construct can be formed which is built from several dependent variables (Ferdinand, 2.
Evaluation of Outliers Outliers are observations that appear with extreme values both univariate and multivariate.
Special treatment can be given to these outliers as long as it is known how four possibilities arise, namely: due to procedural errors, due to really special circumstances that allow the data profile to be different from others, because there is a reason but cannot know what the cause is or there is no explanation regarding the cause.
-Because of the emergence of extreme values, outliers can appear in the existing range of values but when combined with other variables, the combination is no longer common or very These are what are called multivariate outliers.
Evaluation of Multicollinearity and Singularity Can be detected from the determinant of the covariance matrix.
Provided that if the determinant of the sample matrix approaches 0 .
, then multicollinearity and singularity will occur (Tabachnick & Fiddell, 2.
SEM computer programs generally provide a "warning" facility every time there is an indication of Multicoliencarity and Singularity.
If this message appears, examine the data used again to Empirical Study: Brand Performance and Consumer Satisfaction as Determinants of Brand Switching Dewi Ayudya Setyati.
Ahmad Dirgantara determine whether there is a linear combination of the variables being analyzed.
If singularity and multicollinearity are found, one treatment is to transform the data in the form of composite variables.
Hypothesis Testing and Causal Relationships The direct effect .
ath coefficien.
is observed from standard regression weights, with significance testing, comparing the CR (Critical Rati.
or P .
value which is the same as the calculated t If t calculated is greater than t table, it means it is significant.
In SEM there is no single statistical test tool that will measure or test hypotheses about the model (Ringle et al.
, 2.
Table 2 shows several suitability indices and cut off values to be used in testing whether the model can be accepted or rejected.
Table 2.
Goodness of Fit Index Goodness of Fit Index Description CutAeOff Value XA (Chi-squar.
Testing whether the estimated population covariance is the same as the sample covariance .
hether the model fits the dat.
Diharapkan kecil 1-5 atau paling baik antara 1-3 Probability Significance test of the difference between the data covariance matrix and the estimated covariance matrix Minimum 0.
1 or 0.
or Ou 0.
RMSEA
Compensates for the weakness of chi-square in large O 0.
GFI
Calculates the weighted proportion of variance in the sample matrix explained by the estimated population covariance matrix .
nalogous to RA in multiple regressio.
Ou 0.
AGFI
GFI adjusted for DP Ou 0.
CMIN / DF
Good fit between data and model O 2.
TLI
Comparison between the model tested against the baseline model Ou 0.
CFI
Model feasibility testing that is not sensitive to sample size and model complexity Ou 0.
Source: Hair et al.
Reliability Test Reliability is a measure of the internal consistency of indicators of a construct which shows the extent to which each indicator identifies a construct or general latent factor.
In other words, how specific things help each other to explain a general phenomenon.
Variance Extracted Test A measure of reliability that shows the amount of variance of the indicators extracted by the latent construct being developed.
The variance extracted value is recommended at level Ou 0.
Hair et al.
explained that the "confirmatory" pattern shows a procedure designed to evaluate the utility of hypotheses by testing the fit between the theoretical model and empirical data.
If the theoretical model states a "good fit" with the data, then the model is considered to be strengthened, conversely a theoretical model is not strengthened if the theory has a "poor fit" with the data.
Amos can test whether the model is "good fit" or "poor fit".
So "good fit" of the model being tested is very important in using SEM.
Testing of the model developed with various Goodness of fit criteria, namely Chi-Square.
Probability.
RMSEA.
GFI.
TLI.
CFI.
AGFI.
CMIN / DF.
If the initial model does not fit the data well, the model is developed using the Two Step Approach to Goodness of Fit Indices approach.
Model testing with the Two Step Approach Two Step Approach to Structural Equation Modeling (SEM) is used to test the model.
The Two Step Approach is used to overcome the problem of small samples and data compared to the number of instrumentation items used (Hair et al.
, 2.
, and the best reliability accuracy of indicators can be Indonesian Journal of Sustainability Policy and Technology.
Vol 2 No 2, 2024 page 132-149 achieved in this Two Step Approach.
The Two Step Approach aims to avoid interactions between the measurement model and the structural model in the One Step Approach.
The Two Step Approach to SEM does is: estimation of the means model and estimation of the structural model (Ringle et al.
, 2.
The method used to analyze SEM with the Two Step Approach is as follows:
Adding up the scale items for each construct becomes a summed-scale indicator for each construct.
If there are different scales, each indicator is standardized (Z-scor.
with mean = 0, standard deviation = 1, the aim of which is to eliminate the influences of the different scales (Hair et al.
, 2.
Determine the error (A) and lambda () terms.
Error terms can be calculated using the formula 0.
times EA and lambda terms using the formula 0.
95 times E (Hair et al.
, 2.
The calculation of construct reliability (E) can be calculated with the help of the SPSS statistical application program.
After the error (A) and lambda () terms are known, these scores are entered as fixed parameters in the SEM measurement model analysis.
RESULTS AND DISCUSSION
Description of Respondent Characteristics Data regarding the respondent's condition can be known through the respondent's answers to the statements submitted in the questionnaire that has been given.
From these answers, things like the following are known.
Respondents' Age Of the 110 respondents who answered the questionnaire that was given, the ages of the respondents can be seen in Table 3.
Table 3.
Characteristics of Respondents Based on Age Total Percentage (%) 17 Ae 20 years 21 Ae 25 years 26 Ae 30 years > 30 years Total Source: Respondent Questionnaire Age Respondents' Occupation Of the 110 respondents who answered the questionnaire that was given, the occupations of the respondents can be seen in Table 4.
Table 4.
Characteristics of Respondents Based on Occupation Job Total Percentage (%) Students Civil Servant Private Employee Entrepreneur Others Total Source: Respondent Questionnaire Gender Of the 110 respondents who answered the questionnaire that was given, the gender of the respondents can be seen in Table 5.
Empirical Study: Brand Performance and Consumer Satisfaction as Determinants of Brand Switching Dewi Ayudya Setyati.
Ahmad Dirgantara Table 5.
Characteristics of Respondents Based on Gender Gender Male Female Total Source: Respondent Questionnaire Total Percentage (%) Description of Research Results Description of Brand Performance Variables (X.
Based on the results of distributing questionnaires to 110 respondents, answers were obtained regarding customer perceptions of brand performance in Table 6.
Table 6.
Results of Respondents' Answers to Brand Performance Variable Questions Statement Variations of GG cigarette products.
The style and design of GG cigarette packaging is attractive.
Total Score Total Source: Respondent Questionnaire .
Based on Table 6, the majority of respondents stated that they agreed with the questions asked, this was shown by the total score which was at score 5 with a total of 115 answers.
This shows that the variety of GG cigarette products available is very large, making it possible for respondents to choose, and the style and design of GG cigarette packaging is very good and can attract respondents to always consume them.
Variable Description Brand Satisfaction Level (X.
Based on the results of distributing questionnaires to 110 respondents, answers were obtained regarding respondents' perceptions of the level of brand satisfaction in Table 7.
Table 7.
Results of Respondents' Answers to Brand Satisfaction Level Variable Questions Statement After several days of opening the GG cigarette packaging, the taste and aroma of the cigarette will change.
The price offered is in accordance with the satisfaction you feel.
Total Source: Respondent Questionnaire .
Score Total Based on Table 7, the majority of respondents stated that they agreed with the questions asked, this was shown by the total score which was at score 5 with a total of 117 answers.
This shows that the taste and aroma of GG cigarettes will change within a few days after the packaging is opened, because GG has selected all the packages before they are in the hands of consumers, then the price offered is in accordance with the satisfaction they feel too.
Description of Brand Switching Variable (Y) Based on the results of distributing questionnaires to 110 respondents, answers to respondents' perceptions regarding Brand Switching were obtained in Table 8.
Based on Table 8, the majority of respondents in this study stated that they agreed to the questions asked, this was shown by the total score which was at score 5 with a total of 81 answers.
The conditions above show that respondents always try other brands of cigarettes when GG cigarettes are not Apart from that, with the many brands of cigarettes available, respondents often feel interested in trying other brands of cigarettes besides GG.
Indonesian Journal of Sustainability Policy and Technology.
Vol 2 No 2, 2024 page 132-149 Table 8.
Results of Respondents' Answers to Brand Switching Variable Questions Statement If GG cigarettes are not available, you often try other brands of cigarettes.
With so many cigarette brands available, you often feel interested in trying other brands of cigarettes besides GG.
Total Source: Respondent Questionnaire .
Score Total Description of Analysis Results and Hypothesis Testing Evaluation of Outliers Outliers are observations or data that have unique characteristics that appear very different from other observations and appear in the form of extreme values for a single variable or combination of variables (Hair et al.
, 2.
Figure 5 shows Multivariate outliers tested with the Mahalanobis distance criterion at the p < 0.
001 level.
Distance is tested with Chi-Square .
on a df equal to the number of independent variables .
f = .
Conditions: if Mahalanobis is > than the value i2, it is a multivariate In this study there are outliers if the Mahalanobis distance value is > 31.
Residuals Statisticsa Predicted Value Std.
Predicted Value Standard Error of Predicted Value Adjusted Predicted Value Residual Std.
Residual Stud.
Residual Deleted Residual Stud.
Deleted Residual Mahal.
Distance Cook's Distance Centered Leverage Value Minimum
32,06
-3,420
Maximum
71,02
2,265
Mean
55,50
,000
Std.
Deviation 6,852 1,000 4,805 11,896 7,893 1,759 33,84 -62,622 -1,954 -2,026 -67,332 -2,058 1,460 ,000 ,013 75,92 59,931 1,870 1,937 64,303 1,964 14,027 ,051 ,129 55,48 ,000 ,000 ,000 ,024 ,000
5,945
,010
,055
7,355
31,154
,972
1,004
33,251
1,009
3,115
,011
,029
Dependent Variable: no Figure 5.
Results of Multivariate Outlier Testing Source: Data processed Based on Figure 5, after testing it is known that the maximum MD value is 14.
027, which is smaller than Therefore, it was decided that in the research there were no multivariate outliers .
etween Validity and Reliability Test Validity concerns the level of accuracy achieved by an indicator in assessing something or the accuracy of measuring what should be measured.
Meanwhile, reliability is a measure of the internal consistency of indicators of a construct which shows the degree to which each indicator indicates a general Because the indicators are multidimensional, the validity test of each latent variable/construct will be tested by looking at the factor loading of the relationship between each observed variable and the latent variable.
Meanwhile, reliability is tested using construct reliability and variance extracted.
Based on the results of the confirmatory factor analysis in Table 9, it can be seen that the factor loadings for each question item that forms each construct are mostly Ou 0.
5, so that the instrumentation items for each construct can be said to have good and acceptable validity.
Cronbach's Alpha coefficient is calculated to estimate the reliability of each scale .
bservarian variable or indicato.
Meanwhile, item Empirical Study: Brand Performance and Consumer Satisfaction as Determinants of Brand Switching Dewi Ayudya Setyati.
Ahmad Dirgantara to total correlation is used to improve measurements and eliminate items whose presence will reduce the resulting Cronbach's Alpha coefficient.
Table 9.
Factor Loadings and Constructs with Confirmatory Factor Analysis Construct Brand Performance Brand Satisfaction Brand Switching Indicator Loading Factor Source: Data processed The results of internal consistency reliability testing for each construct in Table 10 show good results where the Cronbach's Alpha coefficient obtained mostly meets the required rules of thumb, namely > 7 (Hair et al.
, 2.
Table 10.
Internal Consistency Reliability Testing Construct Brand Performance Brand Satisfaction Brand Switching Indicator Item to Total Correlation Cronbach's Alpha Source: Data processed Apart from testing Cronbach's Alpha internal consistency, it is also necessary to test construct reliability and variance extracted.
Both tests are still within the internal consistency test corridor which will give researchers greater confidence that the individual indicators measure the same measurement .
ee Table .
Table 11.
Construct Reliability and Variance Extracted Construct Brand Performance Brand Satisfaction Brand Switching Indicator Standardize Factor Loading SFL Square Error [A.
Acceptable Limits Source: Data processed Construct Reliability Variance Extracted Ou 0.
Ou 0.
The results of instrument reliability testing with construct reliability and variance extracted in Table 11 show that the instrument is quite reliable, as indicated by the construct reliability value not being completely Ou 0.
However, this figure is not a "dead" measure, meaning that if the research carried out is exploratory, then a value below 0.
70 can still be accepted as long as it is accompanied by empirical reasons that can be seen in the exploration process.
And variance extracted is recommended at the 50 level.
Model Testing with One-Step Approach Base Model In the SEM model, the measurement model and structural model parameters are estimated jointly.
This method has some difficulty in meeting the demands of model fit.
The biggest possibility is caused by Indonesian Journal of Sustainability Policy and Technology.
Vol 2 No 2, 2024 page 132-149 the interaction between the measurement model and the structural model which are estimated together (One Step Approach to SEM).
One step approach to SEM is used if the model is believed to be based on strong theory and the validity & reliability of the data is very good (Hair et al.
, 2.
The estimation results and fit of the one step approach base model to SEM model using the Amos 13.
0 application program can be seen in the Goodness of Fit Figure and Table in Figure 6 and Table 12.
Variasi Produk Style Dan Desain Kinerja Merek Brand Switching Kualitas Produk Tingkat Kepuasan Merek Ketersediaan Produk Lain Ketertarikan Pada Produk Lain d_x2 Harga Figure 6.
One Step Approach Causality Measurement Model Table 12.
Evaluation of Goodness of Fit Indices Criteria Criteria Result Critical Value Model Evaluation O 2.
Ou 0.
O 0.
Ou 0.
Ou 0.
Ou 0.
Ou 0.
Baik Baik Baik Baik Baik Baik Baik C-min/DF Probability RMSEA
GFI
AGFI
TLI
CFI
Source: Data processed From the evaluation results of the one step approach base model in Table 12, it turns out that all the goodness of fit criteria used, all show good model evaluation results, meaning the model is in accordance with the data.
This means that the conceptual model developed and based on theory is fully supported by facts.
Thus, this model is the best model to explain the relationship between variables in the model.
Hypothesis Testing and Causal Relationships Judging from the determinant of sample covariance matrix number: 0.
010 > 0, it indicates that there is no multicollinearity or singularity in this data so the assumptions are met.
Thus, the magnitude of the regression coefficient for each factor can be trusted as seen in the causality test in Table 13.
Table 13.
Results of Causality Testing Regression Weights Brand Satisfaction Brand Switching Brand Switching Significant Boundaries Source: Data processed Eu Eu Eu Brand Performance Brand Performance Brand Satisfaction Unstd.
Estimate Std Estimate 0,494 -0,209 -0,235 Prob.
O 0.
Based on Table 13, the probability level of the direction of the causal relationship, it can be seen that:
Brand performance has a negative effect on brand switching, acceptable [Prob.
Empirical Study: Brand Performance and Consumer Satisfaction as Determinants of Brand Switching Dewi Ayudya Setyati.
Ahmad Dirgantara Brand satisfaction has a negative effect on brand switching, acceptable [Prob.
Brand performance has a positive effect on brand satisfaction, acceptable [Prob.
Table 14.
Unidimensional First Order Brand Satisfaction Brand Switching Brand Switching Source: Data processed <--<--<--<--<--<--<--<--<--- Brand Performance Brand Performance Brand Satisfaction Ustd.
Estimate ,491 -,449 -,508 1,000 ,848 1,000 ,968 1,000 ,285 Std
Estimate ,494 -,209 -,235 ,775 ,691 ,808 ,738 1,196 ,399 Label
,001
,067
,034
***
***
,107
Based on Table 14, research conducted to analyze the influence of brand performance and brand satisfaction on brand switching found significant but negative results, while brand performance on brand satisfaction had a significant positive influence.
Discussion The Influence of Brand Performance on Brand Switching In this study there is a significant negative relationship between brand performance and brand It can be said that brand performance has a negative relationship with brand switching, because the better the brand performance, the lower the level of brand switching.
Brand performance is related to the way a product is produced.
or services that meet consumer needs functionally.
Product performance refers to what is inherent in a product and owned by a brand which makes it different from other products.
Brand performance shows how well a brand ranks according to consumers' objective assessment of brand quality.
When consumers are loyal to certain brands, consumers will actively choose the brand, engage with the brand and develop a positive attitude towards the brand.
This is in accordance with the theory developed by Djati & Darmawan .
and Mahendri & Munir .
which states that consumer assessments of brand performance are related to direct experience with the product, while emotional assessments indicate the level of satisfaction with the brand.
Brand performance plays an important role in a consumer's decision to remain loyal or switch to another brand.
When consumers feel that a brand's performance does not meet their expectations, whether due to declining product quality, poor customer service, or uncompetitive prices, they tend to look for alternatives that can better meet their needs.
This feeling of dissatisfaction often triggers brand switching behavior, where consumers switch to other brands that are considered to have better Research shows that dissatisfaction with brand performance can be a strong mediating factor in the relationship between consumer expectations and the decision to switch brands.
For example, in a study conducted by Akbar .
, it was found that consumer dissatisfaction with product performance significantly increased their likelihood of switching to a competing brand.
Additionally, a study by Gaol et al.
revealed that negative perceptions of brand performance have a negative correlation with brand loyalty, which ultimately encourages brand switching.
Therefore, maintaining consistent brand performance and meeting consumer expectations is the key to preventing brand switching and maintaining customer loyalty.
The Influence of Brand Satisfaction on Brand Switching In this research, the results obtained that the brand satisfaction variable has a significant negative effect on brand switching has been proven to be true.
This is because the results felt by consumers in the form of satisfaction or dissatisfaction will influence the evaluation of alternatives based on consumption experience for the next brand selection decision process, besides that the level of brand satisfaction has a negative relationship with the level of brand switching, because if brand satisfaction is high, then the level of brand switching becomes low, because the decision to switch brands made by consumers occurs because of the dissatisfaction that consumers receive after making a purchase.
This is in Indonesian Journal of Sustainability Policy and Technology.
Vol 2 No 2, 2024 page 132-149 accordance with the research findings by Oebit & Astini .
and Nuromavita & Soliha .
, which states that consumers' emotional dissatisfaction with a product can cause consumers to feel interested in looking for other brands outside the usual brand.
Brand satisfaction does have a significant influence on consumers' decisions to switch brands .
rand switchin.
When consumers are satisfied with the brand they use, they tend to continue using that brand and will not easily switch to another brand (Meidea et al.
, 2.
However, dissatisfaction with a brand can be a major trigger for brand switching.
Consumers who are satisfied with the product quality, price and service of a brand will be more likely to continue using that brand.
This satisfaction creates a strong connection between the consumer and the brand, which reduces the possibility of brand switching.
Dissatisfaction with product quality, price, or service may lead consumers to seek alternative brands that better meet their needs.
This dissatisfaction is a variable that often mediates the relationship between product quality, price, and the decision to switch brands (Meidea et al.
, 2.
This research shows that product quality and price perception have a positive and significant effect on brand switching through consumer dissatisfaction.
Consumers who are looking for product variations or feel bored with the brand they use also tend to switch brands (Jayawijaya et al.
, 2.
Even if they are satisfied with their current brand, the need to seek variety may encourage them to try new brands.
Brand image also plays an important role in brand switching decisions.
Consumers who have a positive perception of a brand image will be more likely to continue using the brand, while negative perceptions can encourage them to look for alternatives (Putri et al.
, 2.
This research shows that the need to seek variety influences consumer satisfaction and brand switching behavior (Jayawijaya et al.
, 2.
The Influence of Brand Performance on Brand Satisfaction In this research, the results obtained that the brand performance variable has a significant positive effect on brand satisfaction has been proven to be true.
This is because if the brand performance is below expectations, the customer is dissatisfied, but if the performance meets expectations, the customer is satisfied.
And if performance exceeds expectations, customers are very satisfied or happy, apart from that the result of consumers' direct experience of brand performance.
Brand performance has a positive influence on the level of brand satisfaction, because the better the brand performance, the higher the level of satisfaction felt by consumers towards a brand.
Brand satisfaction indicates the intention to use a brand and shows consumer knowledge about the brand is getting better and then influences post-consumption evaluation and subsequent decisions.
This is in accordance with the theory developed by Djati & Darmawan .
and Mahendri & Munir .
which states that there is a significant and quite strong relationship between brand performance and brand satisfaction.
Superior brand performance can significantly increase consumer satisfaction.
When consumers feel that a product or service from a particular brand meets or even exceeds their expectations, they tend to feel satisfied.
Consistent brand performance in terms of product quality, reasonable prices, and adequate customer service can create a positive experience for consumers.
This satisfaction not only strengthens consumer loyalty to the brand but also drives positive word-ofmouth recommendations.
For example, in research by Maghfiroh .
and Prastiwi & Rivai .
, it was found that high product performance was significantly positively related to consumer satisfaction.
In addition, research by Kristianto & Wahyudi .
shows that positive perceptions of brand performance significantly increase consumer satisfaction and loyalty.
Thus, good brand performance is one of the key factors that contributes to consumer satisfaction, which ultimately can increase loyalty and support for the brand (Istiyawari et al.
, 2.
CONCLUSION
From the results of tests that have been carried out previously, the conclusions that can be drawn based on the results of this research are, first, if brand performance gets better, then brand switching will decrease, and vice versa.
It can be said that brand performance has a negative relationship with brand Second, if the level of brand satisfaction increases, brand switching will decrease, and vice It can be said that the level of brand satisfaction has a significant negative effect on brand Finally, if brand performance improves, the level of satisfaction will increase.
It can be said that brand performance has a positive relationship with the level of brand satisfaction.
Several suggestions to support the results of the research that have been carried out include, first, for companies to pay more attention to the brands consumed by consumers because the lower the Empirical Study: Brand Performance and Consumer Satisfaction as Determinants of Brand Switching Dewi Ayudya Setyati.
Ahmad Dirgantara level of brand switching by consumers, it shows that the brand's performance in meeting consumer needs functionally has increased.
Second, the company must prioritize customer satisfaction which will benefit the company and also make customers continue to use the company brand.
Third, the company improves its brand performance so that customers do not switch to other brands and remain loyal to using that brand.
Fourth, companies pay more attention to products that will be consumed by consumers, because the quality of these products has a big influence on switching to another brand.
Apart from that, companies should be able to create various product creations and have prices that consumers from all levels can afford.
society, so they will continue to consume it.
For further research, it is hoped that researchers will further develop the current research by adding observed variables related to brand switching, such as promotion because this factor is theoretically related to brand Abbreviations Gudang Garam (GG).
Hanjaya Mandala Sampoerna (HMS).
Structural Equation Modeling (SEM).
AuthorsAo contribution All authors contributed equally to the research and writing of the manuscript.
Dewi Ayudya Setyati revised the article based on the reviewers' suggestions.
Conflict of Interest The authors declare no conflict of interest.
Funding This research received no external funding.
Availability of data and materials The data and materials might be requested via email to the corresponding author.
REFERENCES