Maulida Nurrizky
| Mohamad Harisudin* | Umi Barokah
© 2023 IIETA. This article is published by IIETA and is licensed under the CC BY 4.0 license (http://creativecommons.org/licenses/by/4.0/).
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The culinary industry has grown rapidly in the last ten years in Indonesia. Among the foods whose development is very rapid is Taichan satay. A Taichan satay restaurant in great demand by buyers in Jakarta is “Goreng” Taichan Restaurant. The purpose of this study is to analyze the influence of experiential marketing on consumer satisfaction and product repurchase intentions at “Goreng” Taichan Restaurants. The basic method in this study uses comparative causal methods, and the data collection uses survey techniques. The location of the study was chosen purposively, namely the “Goreng” Taichan Restaurants in the Jakarta, Bogor, Depok, Tangerang, and Bekasi areas. The population in the study were consumers of “Goreng” Taichan Restaurants. The total sample of 120 respondents was selected by the convenience sampling method. The data analysis method is the Structural Equation Modeling (SEM) method with the Partial Least Square (PLS) tool. The results showed that experiential marketing has a positive effect on increasing consumer satisfaction and repurchase intentions. The consumer satisfaction factor positively affects consumer repurchase intentions. The output of this research implies that marketing managers must pay attention to aspects of consumer satisfaction and consumer purchase intentions in designing their company's experiential marketing program.
experiential marketing, consumer satisfaction, repurchase intentions, SEM PLS
The culinary industry subsector in Indonesia has considerable growth potential. In recent years, the growth of the culinary sector has been outstanding, on average contributing 43% of gross domestic products in the creative economy sector in Indonesia. The culinary industry in Jakarta amounts to 22.412 SMEs (36% of the Total SMEs) [1]. The culinary industry is one of the businesses with good prospects for development because food and beverages are basic daily human needs. The culinary business is considered a business that will not die and will continue to grow.
Currently, the culinary business is significantly developed in Indonesia. Various restaurants and cafes have emerged by offering new food menus and consuming experiences. The consumer response is also good as the number of people working outside the home increases, thus changing their consumption behavior, which originally eating at home shifted to restaurants or cafes. The impact of the development of the culinary business has led to an increase in investors entering the culinary business (restaurants and cafes). When viewed, restaurants or cafes experiencing rapid growth target the young consumer segment, which is characteristic of being happy to try new things. In this context, restaurants serve as places to eat and comfortable places to socialize with friends and family [2]. The increasing number of these restaurants makes the culinary business competition more intense.
The intense culinary business competition requires business actors to carry out the right marketing strategy [3, 4]. Currently, many companies are using new marketing strategies focusing on consumer emotions in determining the use of goods or services. Business people are innovating to make new things for consumers, so many restaurants offer experiences to meet consumers' emotions [5]. In addition to offering food products that attract attention and quality, culinary business people must also provide a pleasant experience while consuming. A good experience when consuming is something that consumers will remember [6, 7].
For this reason, a marketing strategy that maximizes experience during consumption is a strategy that is widely used by companies today [8]. The experiential marketing strategy involves the consumer experience when consuming a product/service. This marketing strategy uses five forms of approach, namely, sense, feel, think, act, and relate.
Manufacturers use experiential marketing strategies to utilize consumer satisfaction as the primary material for their marketing strategies. According to the research [9], if consumers are satisfied with a product or service, then consumers will show a desire to buy back the product or service. Consumer satisfaction when consuming is one of the factors that cause consumers to remain interested in the product or service, ultimately leading to repurchase. According to the research [10], repurchase intention is a consumer behavior that responds positively to what the company has given and intends to re-consume the company's products. One of the restaurants that are in great demand by consumers in Jakarta is a “Goreng” Taichan restaurant. Related to this, this study was conducted to determine how experiential marketing affects consumers and the intention to make a repurchase at “Goreng” Taichan restaurant.
2.1 Experiential marketing as a marketing strategy
Experiential marketing is a marketing strategy that provides an experience to the consumer with an unforgettable impression. Experiences over products create stronger bonds and bring out consumer loyalty. At a practical level, experiential marketing utilizes various things so that consumers have practical experience, such as giving product samples, experience using, engaging in an event, etc. Understanding consumer experience as something essential needs to be understood because experience is also a special tribute to a person, one of the high points of life, and one of the most attractive to consumers [11].
From another perspective, Experiential marketing is a method to improve the consumer experience before buying. This marketing strategy emphasizes efforts to stimulate potential consumers through creating a personal experience of the product/service to be purchased [12]. In experiential marketing, the unique experience of consumers being touched includes values that appeal to instincts and senses, thereby increasing the product's value in the context of their lifestyle [13]. Experiential marketing has been identified as one of the marketing strategies that focus on understanding consumer preferences and motivating them to make purchasing decisions [12-15].
Understanding the consumer experience is not only attractive to academics, but marketing practitioners also realize that insight into how the consumer experience consuming a product and brand is needed. Positive emotions delivered from the consumer experience in marketing play an essential role in encouraging consumers to make purchase decisions [16]. A marketing concept that not only views consumers as functionally rational philanthropists in deciding their buying behavior, but consumers are also seen as having emotions, which pay attention to positive experience information related to the products consumed [17]. Knowing the consumer experience will be used as positive information about what consumers will receive when consuming the products offered [18]. Marketing thinking involving experience is called experiential marketing [18, 19].
In turn, the company can plan to provide a positive experience to the potential consumer who will be targeted. The consumer will experience a positive experience when he involves his thoughts in the process of consuming, for which this experience in consuming is also referred to as intellectual experience [17]. Experiential Marketing is based on four considerations: 1. Focus on Consumer Experience, 2. Focus on Consumption as a Holistic Experience, 3. The Consumer is a Rational and Emotional Animal, and 4. Eclectic Methods and Tools [17].
Schmitt put forward five experiential marketing modules into five dimensions of measurement as follows: sensory experiences (SENSE), affective experiences (FEEL), creative cognitive experiences (THINK), physical experiences, behavior and lifestyle (ACT), and social identity experiences resulting from relating to reference groups or cultures (RELATE) [17]. Positive experiences make people feel good and usually result in a specific positive emotion (joy, pride, happiness) [18].
Emotional reactions to food arise through sensory stimuli [20]. The sensory taste of food is the most crucial sensor in judging the deliciousness of food. A positive (pleasant) taste experience of visual descriptions, aromas, sounds, and touches can bring a favourable taste to the products offered . For this reason, in implementing experiential marketing, it is necessary to adapt to new concepts, approaches, structures, and processes in organizations that use experiential marketing as their marketing strategy [17]. In turn, the overall results of identifying experiences (sensory, affective, behavioral, intellectual, and social) should be summarized in an experiential module of the company's marketing.
Various studies have shown that experiential marketing strategies have managed to improve the perception of food as more attractive than traditional marketing [21, 22]. This is possible because the consuming experience felt by consumer also improves the consumer perception and decision to purchase a restaurant in France [6]. The consuming experience is also essential in bringing international and domestic food tourists to New Zealand restaurants [7]. This is possible because experiential marketing has advantages in designing and delivering experiences that follow consumer wishes to bring consumer satisfaction and loyalty [11].
2.2 Consumer satisfaction and repurchase
Consumer satisfaction is the ultimate goal of marketing thinking and practice [23]. All company resources must satisfy the consumer with the products/services offered to achieve consumer satisfaction. In a different definition, consumer satisfaction is the result of a consumer evaluation of the performance of a product or service (post-consumption) compared to expectations before consumption [24-26]. That is, the consumer feels satisfied if the perceived output exceeds the consumer expectations (positive confirmation) and feels dissatisfied if the perceived result does not meet the consumer expectations (negative dissatisfaction) [23, 26].
Understanding consumer satisfaction is vital for companies because the derivative of a satisfied consumer has a positive impact on two purchasing behaviors, namely, the intention to repurchase and the intention to spread the experience to others (word of mouth-WOM) [25]. In addition, consumer satisfaction also impacts increasing consumer loyalty, improving business performance, creating different consumer experiences, and resulting in competitive advantages [14, 27-29]. By understanding consumer satisfaction, companies can follow up in designing advertising materials and advertising designs that will be developed to have an impact on increasing company profits (Dhillon et al., 2021). So, knowing consumer satisfaction is an absolute requirement for companies that want to grow and develop [28].
From another perspective, understanding consumer satisfaction is vital information in designing a marketing strategy. This is in line with the opinion of Piris and Gay [28], which state that consumer satisfaction is influenced by promotion (part of the marketing system). Based on this, the promotion of Taichan satay should be oriented towards increasing consumer satisfaction and intentions of buying behavior. To guarantee this goal, companies must ensure that the marketing materials presented must be actual and are a bundle of attributes that are based on consumer satisfaction [23, 30-33].
Experiential marketing strategies have a very appropriate role to play in influencing consumer satisfaction [2, 33, 34]. The character of experiential marketing strategies that prioritize elements of positive experience (cognitive and emotional) is expected to attract consumers and help consumers find their satisfaction. Various studies also state that experiential marketing has a positive and significant direct effect on consumer satisfaction and the intention to repurchase products/services that have been purchased [5, 9, 24, 25].
The primary method of this study used comparative causal methods [25]. This research technique explores the causal relationships between the variables studied without manipulating the treatment [26]. Research sampling uses survey techniques, while data is collected by observation, and questionnaires are disseminated online. The method of determining the location of the study was carried out purposively, namely “Goreng” Taichan Restaurants located in Jakarta, Bogor, Depok, Tangerang, and Bekasi. The selection of locations is carried out purposively by considering these five restaurants, which are the fastest growing among other “Goreng” Taichan Restaurants.
The population in this study were consumers who had purchased products at “Goreng” Taichan Restaurants at least one purchase in the last six months and were aged 17 years and over. Because the population of Taichan satay consumers is unknown, the sample determination technique used a non-probability sampling method with a convenience sampling technique [26, 27]. The amount of sample in the study is guided by the provisions set out in the analysis of Structural Equation Modelling (SEM) with the PLS approach consisting of the principles of reliability, generosity, simplicity, and logicality [28, 29]. The number of samples considers statistical power and effect size [29].
This study used a statistical power of 80%, a significance level of 5%, and a minimum R2 of 0.10. The maximum number of arrows towards the latent variable is 2, so the minimum sample size required is 110. To get better research results and avoid damage to samples, the number of samples used in this study amounted to 120.
3.1 Data collection methods
The data used in the study consisted of primary data and secondary data. Primary data in this study were obtained from respondents' questionnaire answers and observations in the field. Secondary data are obtained from the Central Statistics Agency and previous research journals. The data collection technique in the study was the dissemination of questionnaires online with google forms to consumers who had made purchases at “Goreng” Taichan Restaurants on a dine-in basis at least once in the past year.
The independent variables in this study are experiential marketing components, while the dependent variables are consumer satisfaction and repurchase intentions. Each variable used in this study has indicators, as can be seen in Table 1.
3.2 Data analysis
The analytical tool used in this study is Structural Equation Modelling with the help of smart-PLS software. The advantage of Smart-PLS is that even with a small number of samples and not being a normal multivariate, it can still explain the relationship between variables, both fellow latent variables and indicator or manifest variables. Another advantage of Smart PLS is that it can process data for both formative and reflective SEM models. Model SEM formative characteristics include latent variables or constructs built by indicator variables. The reflective SEM model is an SEM model where the constructed variable reflects the indicator variable, so the arrow leads from the indicator variable to the latent variable [33, 34]. The stages in using the PLS analysis tool are as follows:
(1) Testing Measurement Models (Outer Model)
The measurement model was evaluated with convergent validity, discriminant validity, and reliability [34]. If the loading factor value is >0.60 and the AVE value >0.50, then the data is valid. If the value of the cross-loading indicator on the variable is higher when compared to other variables, the variable used is valid. If the composite reliability value is >0.60 and the value of Cronbach's alpha >0.70, then the data used is reliable [33].
(2) Structural Model Testing (Inner Model)
Structural models are evaluated by looking at the values of the coefficients of determination (R²) and predictive relevance (Q²). The criteria for the value (R²) is > 0.67, which indicates that the model is good, >0.33 moderate, and > 0.19 is weak. The evaluation of the structural model then uses the value (Q²). If (Q²)>0, then the model has predictive relevance, but if the <0, then the model lacks predictive relevance [23].
(3) Testing hypothesis
The hypothesis test on Partial Least Square (PLS) was carried out by bootstrapping method [23]. This study used a significance level of 5%, a t-statistical value of 1.96, and a p-value smaller than 0.05. If t-statistics ≥ t-table and p-value ≤ alpha (α), then Ha is accepted; H0 is rejected.
Table 1. Research variables and indicators
|
Variable |
Indicators |
|
Experiential Marketing |
1. →Sense 2. →Feel 3. →Think 4. →Act 5. →Relate |
|
Consumer Satisfaction |
1. →Product Quality 2. →Product Price 3. →Trust 4. →Consumer Service |
|
Repurchase Intention |
1. →Frequency of Purchase 2. →Consumer Commitment 3. →Positive Recommendations |
Sumber: [31, 32]
4.1 General conditions of the research site
This restaurant already has several branches in major cities in Indonesia. “Goreng” Taichan Restaurants was first founded in 2016 by Niko Al-Hakim. Niko opened the first branch of this restaurant in the city of Bandung after going through business development and discussions. The initial idea of developing this restaurant was that Niko wanted to present Taichan satay culinary, previously sold traditionally using carts, becoming a top-level culinary by bringing it to the restaurant level.
“Goreng” Taichan Restaurants
received a significant and positive response when it was first introduced to the public. Consumers and culinary connoisseurs seem enthusiastic and interested in trying this variety of Taichan satay menus. Thanks to the positive enthusiasm of the community, “Goreng” Taichan Restaurants was able to open six new branches spread across cities in Indonesia within a year.
4.2 Characteristics of respondents
Respondents totalled 120 people consisting of women as much as 79.2% and men as much as 20,8%. This difference in the number of samples is in line with the results of studies in several cities that showed that female consumers had lower levels of financial literacy than male consumers, so female consumers behaved more consumptively [35, 36]. In the national aggregate (Indonesia) Sri Mulyani, Minister of Finance of the Republic of Indonesia, also mentioned that the financial literacy of Indonesian women is lower so that they behave more consumptively https://investor.id/business /275587/capaian-indeks-inklusi-keuangan-perempuan-masih-lebih-rendah-dibanding-lakilaki.
Based on age group, most respondents were in the late adolescent group (17 - 25 years), as much as 76.7%. Based on the latest level of education, the majority of respondents (60%) have a high school education, which matches the employment status of the respondents, the majority of whom are students/students, as much as 67.6%. Monthly income is dominated by students with an income of ≤ Rp1,800,000 (35.8%). Based on the residence, as many as 71 respondents were residents of DKI Jakarta.
The characteristics of respondents were based on how long they knew about "Goreng" Taichan Restaurant; the majority of respondents (77%) already knew about this restaurant within > 12 months. This shows that the "Goreng" Taichan Restaurant has long been known to its consumers so that it can influence the occurrence of repurchases at the restaurant. As many as 70.9% of respondents learned about Taichan restaurant information "Goreng" through social media. Thus, from the results of this study, information was obtained that most respondents knew about the “Goreng” Taichan Restaurants through social media such as Instagram, Twitter, and Facebook.
The characteristics of respondents based on opinions provide an explanation related to the attitude after purchasing the “Goreng” Taichan Restaurants. As many as 78.7% would recommend “Goreng” Taichan Restaurants to others because it has a wide variety of exciting menus and good taste. As many as 80% of respondents have already made a repurchase at “Goreng” Taichan Restaurants. Most respondents who had made a repurchase said that they made a repurchase because the food served by “Goreng” Taichan Restaurants had the appropriate taste.
4.3 Discussion
4.3.1 Evaluation of the measurement model (Outer model)
The measurement model was evaluated with convergent validity, discriminant validity, and reliability [34]. Based on data analysis, it shows that convergent validity testing on all indicators has a loading factor value of >0.6 so that it is declared valid [36, 37]. This shows that each indicator is closely related to the variables formed. Furthermore, convergent validity testing is also seen from the Average Variance Extracted (AVE) value. The AVE value obtained > 0.5, so it was declared valid. This shows that all variables can explain the diversity of all indicators [28, 33].
Discriminant validity determines a variable's construct [23]. Discriminant validity values are obtained based on the Fornell-larcker criterion In this study, the cross-loading value of each indicator (against its latent variable) has a higher value than the cross-loading value between the latent variable and other indicators. This shows that each indicator can explain its variables better and has higher values than other variables [23].
The reliability of a research model can be seen from the value of Cronbach's alpha and the value of composite reliability. A variable is declared reliable if it has a value of Cronbach's alpha > 0.70 and a composite reliability value of > 0.60. In this study, Cronbach's alpha values of the experiential marketing, consumer satisfaction, and repurchase intention variables were 0.955, 0.958, and 0.924, meaning that each variable met the criteria above 0.70. The composite reliability value of the experiential marketing variables, consumer satisfaction, and repurchase intentions is 0.960; 0.963; and 0.939, which means that each variable has met the criteria above 0.60. This suggests that all variables in the study are said to be reliable [28, 33]. The results of the PLS modeling path diagram can be seen in Figure 1.
Figure 1. PLS modeling path diagram
4.3.2 Structural model evaluation (Inner model)
Testing of structural models or inner models is carried out to predict the relationships between latent variables. This test was carried out by looking at the determinant coefficients (R-square) and predictive relevance (Q-square) in endogenous variables [23]. In this study, the R-square value of the consumer satisfaction variable was 0.613, which had a value between 0.33 and 0.67, so it was included in the moderate or moderate category, and the repurchase intention variable was 0.729 included in the strong category because it had a value above 0.67. This shows that the experiential marketing exogenous variable can explain the endogenous variable of consumer satisfaction by 61.3%, and the remaining 38.7% is explained by other variables that are not studied. The experiential marketing exogenous variable can define the endogenous variable of repurchase intention by 72.9%, and the remaining 27.1% is explained by other variables that were not studied.
The next inner model test looks at the value of predictive relevance (Q-square). Q-square measures the resulting observation value along with its parameter estimates. The Q-square value of the consumer satisfaction variable is 0.372, and the repurchase intention variable is 0.524. The Q-square assessment criteria are considered good if the Q-square value is more than 0; the model has predictive relevance [23]. The variables of consumer satisfaction and repurchase intention each have a Q-square value of more than 0, so this study shows that the observed value and estimated parameters are considered good. Based on this, the observation value and the estimated value obtained can explain the structure of the built model.
4.3.3 Hypothesis testing
Experiential marketing experienced by consumers of “Goreng” Taichan Restaurants is measured from five indicators, namely: sense, feel, think, act, and relate [35, 38, 39]. In this study, each indicator has a different role in creating a memorable consumer experience. Sensory and taste indicators play an important role because they can be seen and felt directly by consumers (food taste, cleanliness, and restaurant interior) to arouse consumer emotions towards food [40] to increase the level of satisfaction when making purchases at “Goreng” Taichan Restaurants.
Consumer satisfaction is measured based on four indicators (product price, product quality, trust, and consumer service); where these indicators are to capture whether the consumer experience when purchasing “Goreng” Taichan Restaurants obtains satisfaction. Testing the consumer satisfaction hypothesis is carried out by statistical tests on each path. The method used is the bootstrapping method which has the function of calculating the significant result of the parameter coefficient [40, 41]. Hypothesis testing in this study used smart pls 3.0 applications with a significance level of 5%, a t-statistic value of 1.96, and a p-value of ≤ 0.05. The hypothesis is accepted if the p-value ≤ alpha, while if the p-value value ≥ alpha, then the hypothesis is rejected. The results of the bootstrapping promotion can be changed in Table 2 as follows:
Table 2. Bootstrapping path coefficient analysis results
|
Variable |
Direct Effect |
T-statistic |
P-value |
Information |
|
Experiential marketing → Consumer satisfaction |
0.783 |
18.289 |
0.000 |
Significance |
|
Experiential marketing → Repurchase intent |
0.430 |
3.342 |
0.001 |
Significance |
|
Consumer satisfaction → Repurchase intent |
0.474 |
3.951 |
0.000 |
Significance |
Source: Primary Data Analysis, 2021
H1: It is suspected that experiential marketing affects consumers' satisfaction with “Goreng” Taichan Restaurants.
Hypothesis 1 in this study is that experiential marketing affects “Goreng” Taichan Restaurants' consumer satisfaction. Based on Table 2, it can be seen that H1 has a t-statistical value of 18,829 and a p-value of 0.000, so hypothesis 1 proposed in the study is accepted. The results showed that experiential marketing experienced by consumers of “Goreng” Taichan Restaurants significantly affected consumer satisfaction. This means that the better the experiential marketing experienced by consumers of “Goreng” Taichan Restaurants, the higher the consumer will get higher satisfaction. The results of this study are in line with several previous studies [15, 38, 42-44]. This stated that experiential marketing positively affects consumer satisfaction and company business performance [42]. Subject research [38, 42-45] is different from this study; it shows that experiential marketing consistently has a positive effect on consumer satisfaction in various product cases. Thus, Taichan Restaurants' "Goreng" must design increased consumer satisfaction to be an essential part of developing its experiential marketing strategy [11].
H2: It is suspected that experiential marketing influenced the repurchase intention at “Goreng” Taichan Restaurants.
Hypothesis 2 in this study states that experiential marketing affects the intention of repurchasing at “Goreng” Taichan Restaurants. Based on Table 2, it can be seen that H2 has a t-statistical value of 3.342 and a p-value of 0.001, so hypothesis 2 proposed in the study is acceptable. Thus, this study concludes that the experiential marketing experienced by consumers of “Goreng” Taichan Restaurants significantly affects repurchase intentions. This means that the better experiential marketing experienced by consumers of “Goreng” Taichan Restaurants, the consumers will have a high desire to make a repurchase. This result is in line with the opinion of [17] and also in line with several previous studies [42-44]. Based on these results, the experiential marketing strategy needs to be thoughtfully planned to increase sales turnover through increasing consumer repurchase intentions
H3: It is suspected that consumer satisfaction influenced the repurchase intention at “Goreng” Taichan Restaurants.
Hypothesis 3 in this study states that consumer satisfaction affects the intention to repurchase at “Goreng” Taichan Restaurants. Based on Table 2, it can be seen that H3 has a t-statistical value of 3.951 and a p-value of 0.001, so hypothesis 3 proposed in the study is acceptable. The results of this study are in line with previous studies that concluded that consumer satisfaction has a positive and significant effect on repurchase intentions [37, 42, 44]. This means that the higher the satisfaction consumers get after purchasing “Goreng” Taichan Restaurants, the consumer will have the desire to make a repurchase.
Based on the results of research and discussion, the following conclusions can be drawn: (1) Experiential marketing has a positive and significant effect on consumer satisfaction at “Goreng” Taichan Restaurants, (2) Experiential marketing has a positive and significant effect on repurchase intentions at “Goreng” Taichan Restaurants, (3) Consumer satisfaction has a positive and significant effect on repurchase intentions at “Goreng” Taichan Restaurants.
Suggestions for “Goreng” Taichan Restaurants managers are: (1) maintaining an experiential marketing strategy. (2) “Goreng” Taichan Restaurants continues to implement experiential marketing practices that make consumers satisfied. The positive influence of experiential marketing increases consumer satisfaction and repurchase intentions, so the “Goreng” Taichan Restaurants must design a well-designed experiential marketing strategy [3]. Designing consumer satisfaction targets and conducting periodic evaluations will help "Goreng" Taichan restaurants maintain their market share and increase.
Suggestions for the managers of "Goreng" Taichan Restaurants are: (1) we recommend that "Goreng" Taichan restaurants implement experiential marketing strategies because experiential marketing strategies have a positive and significant effect on improving consumer satisfaction and repurchase intentions of products and services sold, (2) "Goreng" Taichan Restaurants should focus on designing experiential marketing strategies that are oriented towards improving consumer satisfaction.
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