Marketing Mix Performance on Customer Value and the Effect on Customer Trust and Customer Loyalty on Pt Pindad Persero As the Army Defense Industry of Indonesia A Survey on Customers
An attempt to increase customer loyalty done by each business entities to achieve excellence compete sustainable demands that is very urgent .It is related to the government's effort to realize good governance the centre of all these .One of the important elements in creating that would be improving the performance of hotchpotch marketing in order to get trust customers and in turn led to customer loyalty This research study of these efforts on defense industry land indonesia .Methods used is survey explanation the survey was conducted to 60 samples from 319 companies that become customers pt .Pindad persero as producer of the defense industry land and prodk komersia indonesia Respondents this research is top manager and middle manager of each company customers defense industry land indonesia .Technique data collection was carried out by communication of indirect with the help of an instrument of the questionnaire and study documentation .Data analysis be done in descriptive with the help of statistika average score terbobot and in inferential with Struktural Equation Modeling (SEM) Partial Least Square (PLS) The data used was primary and secondary data. Based on the descriptive analysis on the hypothesis which were presented on the influence of Marketing Mix on Customer's Value, Trust Loyalty of PT Pindad (persero) as the defense manufacture supplier in Indonesia, we can conclude that: The overall Marketing Mix of PT Pindad (Persero) is categhorized as sufficient. The Customer's Value of PT Pindad (Persero) is categhorized high. Overall Trust towards PT Pindad (Persero) is Trustworthy. The Overall Loyaltyt of PT Pindad (Persero) is categhorized Loyal. MM has significant influence on CV and L, which means that the sufficient performance of MM has influence it's CV L. CV of PT Pindad (Persero) is high, as it is being supported by the "after sales service" division, even it has no influece on Customer's satisfaction L. The customers of PT Pindad (Persero) are Loyal, eventhough the Customer's satisfaction does not influence on L. The loyalty of PT Pindad (Persero)'s customers has not been formed, despite of it's ability to produce superior products. The government as it's main customer is not commited to purchase the weapons locally, especially from PT Pindad (Persero) The MM has 35% influence on CV, 34.8% on L, and 16.4 on the Customer's Satisfaction, which means that the MM performance has significnt impact on CV. 1. Research Background commercial business competition currently reflect development of various industries that lasted dynamically, in line with the dramatic environment change, tight competition, customers taste change, technological progress and differences. Globalization and MEA (Asean Economic Community) that result in the global import, especially frm China and asean, to their homeland put pressure on the economic and trade.In the hypercompetitive globalization, manufacturers must produces new products, or renewed old product with future technology quality as expected needed by customers. Prof.Habibie, as the first president director of PT.Pindad (Persero) since the beginning of 1980 start producing at PT. Pindad (Persero) by purchasing FNC weapons licenses fabrique nationale carbine from Belgium which were initially prepared for European soldiers, then prepared modified for Indoensian ARMY. The alteration resuted assault weapons (SS) accurate reliable comfortable used .PT.Pindad persero as the Indonesian Defense industrial manufacturer also produce alutsista Main Weapon Tools System) to meet the needs of Indonesian defense and security. Assault weapons ss is a superior, reliable comfortable weapon of a superior reliable and comfortable used however until now these weapons are not considered as default weapon for Indoneisan ARMY. Not only that the products of PT.Pindad persero has not dare to be competed with similar products from the global market but also that the products of PT. Pindad persero are not yet able to refuse other similar products from other suppliers, in other words, Indonesian ARMY still act as a switcher buyer against PT. Pindad persero Nowadays, there are obstacles and success which are not yet optimally utilized as other superior products. However this success shows the needs of support and attention. Several existing problems faced by PT Pindad (Persero) among its customers demand more than 2 years guarantee for its Alutsista products, as the significant complaints coming from customers regarding the missed production schedule from PT Pindad (Persero) The minimum of Financial support resulting the expensive products, as it cannot give away discounts to its customers. International Journal of Management Sciences and Business Research, Jan 2015 ISSN (2226 8235) Vol 5, Issue 1 http:/www.ijmsbr.com Page 137 Several obstacles in production process are unavailability of raw materials, barrel, steel armors for the body of tanks, and messing plate either for the defense or security products, or for commercial products which will affect it"s selling price. The need of chemical or metal to support PT Pindad (Persero) production creates a problem which become an obstacle for planning a production schedule for the company. The delay of production processes may be caused by the complicated of administrative process of importing products from overseas, expensive parts, or lateness of delivery. The material import obstacles are not only from the delivery time estimation, but also significant production cost which will be beared by the company to sell its products in high price. 2. Literatures, Framework and Hypotesis 2.1 Literatures, Grand Theory refers to Marketing Theory Management by Kotler Keller (2012:19) Marketing mix by Kotler dan Keller, (2012:127) Product Development by, Michael, Grappa, and Lia, (2008:67) finansial, dan competitor Yu Jia Hu (2011 70) Marketing mix strategy, Michael, Grappa, dan Lia, 2008:67) Financial Globalisation Competitor, by Kotler and Keller, (2012:94) Marketing Mix Improving, Porter, (2008:13) Improving Dynamic Industrial to be business opportunity. Midle Range reference: Marketing Management Strategy, and Applied Theory elaborate and implement 4 variables (Marketing Mix, Customer Value, Customer Trust, and Custoer Loyalty) Marketing Mix is the combination of 4P (Product, Price, Promotion Place) is a marketing startegy which is implemented in order to achieve company"s goal by utilizing information to fufill and obtain optimal market. Product. Price is not only a labeled number, but there are also influencig factors such as costs, competition, costumer demand, and government control, (Keegan, et al, 1995:495) Promotion, as explained by Kotler dan Armstrong (2006:465) "Activities under taken with the aim to provide incentives to increase sales of aproduct. Sales promotions are less likely to attract new buyers in the long term the market has been established, because the only sales promotions to attract consumers who are always moving between differentbrands depending on special offer sales promotions that. It will vary,depending on whom promotions" Place,as exlained by Shahhosseini dan Ardahaey (2011: 232) is "Place refers to delivery of the product measured by variables such as distribution, availability, and shelf space" Customer Value is customer"s perception on the offered quality. Higher perception from competitors will influence the customers" loyalty level. The higher perception that a customer has, the more likely an agreement will take place. Van De Kempet.al. (2001) defines value concept as the differences between all related benefits and sacrifices. Experts point of view reflect the importance of services. Social Psychological Interactions is customers" alternative services consideration on the company"s ability to maintain good relationship with it"s customers and providing custoers the opportunty to express their desires. There are 4 main psychological factors, trust and attitude, as explained below. Consideraton of Service Alternative. Competition/Consideraton of Service Alternative is the customer"s judgement on the company which is related to the ability of the company to deliver services differently from its competitors, and the willing to offer more bargaining prices. Trust is the willingnes and the ability of someone to accept the risks of decision making, hoping that it will affect others. Reliability of a product can grow trusts, therefore reliability is referring to the consistency of delivering a product. The consistency is delivered on timely basis based as expected. Benevolence is defined by Kim et al. (2003 a: 97) as attention benevolence, empathy, confidence, and power received. Integrity can be defined by fairness, fulfillment, loyalty, honesty, dependability, and reliabilty as explined by Kim et al. (2003a) Loyalty is important for a company, as explained by Louis Columbus in his book Li (2011:345 352) Oliver in Vanessa (2007:70) defines loyalty as the cutomers" commitment to stay or re purchase materials or services in the future consistently, despite of the situational influence and marketing process which potentially influence the change of customers" conduct. Mardalis explains that loyalty can be measured based on choice sequence. The choice sequence method or the re purchasing willingness is often used in researches by using the customers" daily pannels agenda, and even more updated system, a supermarket data scanner. International Journal of Management Sciences and Business Research, Jan 2015 ISSN (2226 8235) Vol 5, Issue 1 http:/www.ijmsbr.com Page 138 Proportion of purchase. Different from te choice sequence, this method is studying the totl of customers" propostion in a population of certain products. The analised data is using the custmers" pannels. Preferences. This method is measuring the loyaty by using the psychological commitment o