Analysis of Consumer Satisfaction with Product Quality, Service and Prices at Gundaling Farmstead Karo District, Indonesia

Analysis of Consumer Satisfaction with Product Quality, Service and Prices at Gundaling Farmstead Karo District, Indonesia

Adrina Maulida Puti¹*, Ma’ruf Tafsin², James Hellyward³

¹Master of Animal Science Program, Faculty of Agriculture, University of North Sumatra, Jl. Prof. Dr. Sofyan No. 3 Usu Campus Medan, North Sumatra, 20155

²Department of Animal Husbandry, Faculty of Agriculture, University of North Sumatra, Jl. Prof. Dr. A. Sofyan No. 3 Usu Campus Medan, North Sumatra, 20155

³Department of Animal husbandry, Faculty of Agriculture, University Andalas, Limau Manis, Kec. Pauh, Padang, West Sumatera 25175

*Corresponding Author

DOI: https://dx.doi.org/10.47772/IJRISS.2024.809092

Received: 05 September 2024; Accepted: 10 September 2024; Published: 04 October 2024

ABSTRACT

This research was conducted on consumers who bought products at Gundaling Farmstead, Indonesia. The aim of this research was to determine the level of consumer satisfaction with product quality, service quality and prices at Gundaling Farmstead, the conformity between consumer expectations and company performance and to find out the dimensions that must be improved to increase Gundaling Farmstead consumers’ satisfaction. Respondents consisted of 100 consumers using a questionnaire containing 25 research attributes. Data were analyzed descriptively using Importance Performance Analysis (IPA) and Customer Satisfaction Index (CSI). The research results show that based on the IPA analysis, it is concluded that the attributes that have a high level of importance but whose performance is still considered low are packaging that protects the product, strategic location and attractive spatial design. The Customer Satisfaction Index value is 75.0%, which means it is satisfactory. Thus, the overall attributes of Gundaling Farmstead Karo Regency can be stated to have satisfied consumers.

Keywords: Consumers, Consumer Satisfaction, Product Quality, Service Quality, Price

INTRODUCTION

Current economic developments have an impact on human life, especially the business world. A large number of companies, ranging from small, medium, to large companies, have emerged and competition between companies is increasingly fierce. Therefore, marketing is one of the activities that can be carried out to fight competition, develop a business and generate profits, allowing companies to develop products and prices and carry out more promotions (Kunz, 2008).

The livestock sector is a sector that is quite important in the process of meeting the food needs of the community. Livestock products are a source of animal protein. Demand for food from livestock in Indonesia continues to increase. This subsector makes a contribution to the national economy. According to the Central Statistics Agency, the population of dairy cattle in Indonesia in 2019 reached 565,001 heads and in 2022 it will reach 592,897 heads. In North Sumatra Province in 2019 it reached 4847 heads and in 2022 it reached 5303 heads, while the milk production of North Sumatra cows in 2019 was 3489.84 tons and in 2022 it reached 8980.41 tons. The data above proves that dairy farming is a business that is currently in demand (BPS, 2019).

Based on the initial survey, it was found that several consumers complained about the product which was stated to have expired 4 hours after opening the lid but after only a few hours the milk had changed its taste, and there were also those who complained about the strong smell of cow dung which made it uncomfortable to enjoy drinks and drinks. food at that location (Lawrence,2006) .High and low sales are greatly influenced by consumers. To increase the number, companies compete to provide better product quality and service quality than competitors in order to compete with other similar companies.

According to Kotler and Keller (2019) satisfaction is a person’s feeling of happiness or disappointment that arises from comparing perceived performance against their expectations. If performance fails to meet expectations, customers will be dissatisfied. If performance meets expectations, customers will be satisfied. If performance exceeds expectations, customers will be very satisfied and happy.

Gundaling Farmstead is an integrated agrotourism farm and restaurant in Berastagi which has a farm to table concept serving typical Karo and international menus with raw materials from the farm which are served fresh in a restaurant located not far from the farm. Gundaling Farmstead has a zero waste business vision that maximizes aspects from upstream to downstream. It is important for Gundaling Farmstead to find a way to retain consumers from similar competitors. One way to do this is to try to provide the best service and products at affordable prices in order to retain consumers, get new consumers, and provide consumer satisfaction. In this way, it is hoped that Gundaling Farmstead can increase consumers and not experience a decrease in consumers (Gundaling,2020).

In this research, the author uses Gundaling Farmstead as the research object. Gundaling Farmstead is a company that sells dairy products and many other livestock products. Gundaling Farmstead is located at Jl. Jamin Ginting, Jaranguda Village, Berastagi, Karo Regency, North Sumatra.

Its location in a tourist area also makes Gundaling Farmstead busy with consumers and provides positive value and good habits for consumers by consuming fresh milk. However, there are several reviews on social media such as on Google, where there are several consumers who share their experiences of visiting and buying products at Gundaling Farmstead, feeling disappointed or dissatisfied after visiting and buying products at Gundaling Farmstead and there are also several visitors found at the location who provide criticism about the products. is at Gundaling Farmstead.

The thing that really needs to be considered to win business competition is to provide satisfaction to customers with product quality, service quality and competitive prices. According to Kotler (2013) the overall level of consumer satisfaction can strengthen consumers’ value in using the company’s products or services. Based on the description above, researchers are interested in finding out and examining how much influence the variables of product quality, service quality and price have on consumer satisfaction at Gundaling Farmstead.

MATERIALS AND METHODS

Population is all research objects that are used as data sources that have certain characteristics in a study. The population used in this research were samples who were visiting and purchasing Gundaling Farmstead products.

Sampling in this research used Accidental Sampling, which is a sampling technique based on chance, anyone who happens to be at Gundaling Farmstead buying a product can be used as a sample, if someone considers it suitable as a source of the required data. With the number of visitors uncertain, the researchers decided to take a sample of 100 visitors, with the age criteria being over 17 years. According to Sugiyono (2019), a sample of 100 people is sufficient to represent the consumer population.

Data Analysis Methods

The validity test in this research was carried out using SPSS version 26 software. Then the calculation results will be compared with the critical value in the r table with a significance level of 5% and the number of samples used. If the r result (Pearson correlation coefficient) is greater than the r table (critical value), then the instrument is declared valid. Conversely, if the calculation result (Pearson correlation coefficient) is smaller than rtable (critical value), then the instrument is declared invalid. If there is invalid data in the research, the researcher can delete items from the questionnaire that are invalid. Or by improving the structure and meaning of sentences.

Testing the reliability of measuring instruments in this study used the Croanbach alpha coefficient with a significance level of > 0.60. A variable is said to be reliable if the variable provides a Cronbach alpha value > 0.60.

Primary data is data collected and obtained through interviews and questionnaires. Secondary data was obtained from books, animal husbandry services, libraries, the internet and literature. This research variable is an attribute or characteristic or value of a person, object or activity that has certain variations determined by the researcher to be studied and then conclusions drawn (Sugiyono, 2019).

Validity test is the degree of agreement between the data that occurs on the research object and the data that can be reported by the researcher. Thus, valid data is data that does not differ between the data reported by the researcher and the actual data (Sugiyono, 2017). The validity test in this research was carried out using SPSS software. Then the results of this calculation will be compared with the critical value in the r table with a significance level of 5% and the number of samples used. If the r result (Pearson correlation coefficient) is greater than the r table (critical value), then the instrument is declared valid. On the other hand, if the calculation result (Pearson correlation coefficient) is smaller than rtable (critical value), then the instrument is declared invalid. If there is invalid data in the research, the researcher can delete items from the questionnaire that are invalid. Or by improving the structure and meaning of the sentence.

Reliability Test according to Sugiyono (2017) is carried out to find out how far the measurement results remain consistent if measurements are made twice more on the same symptoms using the same measuring equipment.

Importance of Performance Analysis is used to measure the level of customer satisfaction with the products or services offered by the company. The IPA approach realizes that satisfaction is the result of the function of two components, namely the importance of the product or service to the client and the performance of a company in providing the product or service (Silva & Fernandes, 2011).

Determine the Customer Satisfaction Index (CSI), namely the weight score divided by the maximum scale used (in this research the maximum scale is 5), then multiplied by 100 percent. The formula can be written as follows:

Customer satisfaction is measured from product quality which includes product hygiene, taste, aroma, packaging and size, for service quality it is measured from assurance, empathy, tangibility, reliability and responsiveness while for price it is measured from price according to quality, affordable price, competitiveness and conformity with benefits.

RESULT AND DISCUSSION

Profile of Gundaling Farmstead Berastagi

This company started in 2006 with the name PT. Putra Indo Jaya Mandiri and changed its name in 2007 to PT. Putra Indo Mandiri Sejahtera (PT. PIMS). This company is located in Languda Village, Berastagi, Karo Regency, North Sumatra.

Testing results

Reliability Statistics

Table 1. Results of performance level reliability testing

Based on the results from the table above, it can be seen that by using SPSS the Cronbach alpha value was obtained, namely 0.867 with an N of items of 25. This value is in the range 0.81-1.00 so it falls into the very reliable category. According to Ghozali (2016), an instrument can be said to be reliable if the Cronbach’s Alpha value is > 0.6.

Results of Reliability Testing Level of Importance

Table 2. Results of reliability testing for levels of importance

Based on the results from the table above, it can be seen that by using SPSS the Cronbach alpha value was obtained, namely 0.902 with an N of items of 25. This value is in the range 0.81-1.00 so it falls into the very reliable category.

Respondent Characteristics

This research was carried out by distributing questionnaires directly to consumers who were at the Gundaling Farmstead location and had purchased products available at Gundaling Farmstead as many as 100 respondents. In the results of this study, the characteristics of respondents were differentiated based on gender, age, education level, income and occupation. After conducting interviews and distributing questionnaires to respondents, the following results were obtained:

Table 3. Characteristics of Respondents

source: 2023 research results at Gundaling Farmstead

Performance Level reliability

Gender

The first characteristic of respondents in this study was categorized based on gender. Samples were categorized based on male and female gender. In the gender category, it was found that 54 respondents who bought this product were women and 46 were men. According to John (2011), male consumers are more impulsive while female consumers have a higher frequency of shopping and are less impulsive than men.

Age

Research respondents were divided into the age range 17-25 years, 26-30 years, 31-40 years, and over 40 years. From the data collected in this research, there were 34 Gundaling Farmstead consumers aged 17-25 years, 20 people aged 26-30 years, 26 people aged 31-40 years, and 20 people aged over 40 years.

Level of education

Respondents in this study were then categorized based on education level. Educational levels are sorted from elementary school, middle school, high school, D3 and Bachelor to Masters. From the research results, it was found that there were 1 person at the elementary school level, 3 people at the junior high school level, 20 people at the high school level, 21 people at the D3 level, and 57 people at the S1-S2 level. level.

Type of work

Respondents in this study were then categorized based on their type of work. From the research results, it is known that 17 people have civil servant status, 36 people are employees, 16 people are students, 18 people are entrepreneurs, and 13 people have other professions.

Income

Respondents in this study were then categorized based on their income for a month. In this study, 15 people received responses with salaries < Rp. 1,000,000, income Rp. 1,000,000- Rp. 2,000,000 for 20 people, Rp. 2,000,000- Rp. 3,000,000 for 18 people and > IDR 3,000,000 for 47 people.

CSI

This CSI calculation uses the average score for the level of importance and the average score for the level of attribute performance at Gundaling Farmstead Berastagi.

The CSI calculation can be seen in the following table:

Table 4. CSI calculation

source: 2023 research results at Gundaling Farmstead

Cartesian Diagram Analysis

From the results of the mapping carried out on the Cartesian diagram, it can be seen that several attributes need to be improved and these attributes need to be maintained by the company which are divided into quadrants (I, II, III and IV) according to the level of suitability between levels of interest. customers and company performance. The position of the five assessment attributes is determined based on the average value of both the level of importance and the level of performance of each. By determining the X axis at 3.67 and the Y axis at 4.08, the average attribute is obtained for both level of importance and level of performance. Can be seen in the following diagram:

Figure 1. Cartesian diagram of Gundaling Farmstead Berastagi

Quadrant I (Top Priority)

Attributes in quadrant I are attributes that are considered important by Gundaling Farmsetad consumers, but the level of performance is still low. Therefore, the Gundaling Farmstead company must be able to make continuous improvements so that the performance of the attributes in quadrant I can be improved. Attributes in quadrant I are packaging that protects the product and is attractive, strategic location, attractive spatial design.

Quadrant II (Maintaining Achievement)

Attributes in quadrant II are attributes that are important for consumers and the company has provided services in accordance with consumer desires. For consumers, the attributes that are satisfactory and must be maintained by the company are employees behaving politely and friendly, employees providing a sense of security and comfort, employees showing sincerity in serving, employees helping in choosing products, employees having a neat appearance, a comfortable place, employees having information. . What is clear is that employees have good knowledge in providing the information consumers need, employees serve responsively, employees serve quickly. These attributes show the company’s strength and superiority in the eyes of consumers, and must be maintained by the company.

Quadrant III (Low Priority)

Attributes in quadrant III have a low level of importance and their performance is also considered poor by Gundaling Farmstead consumers. Companies need to improve or increase the performance of these attributes so that the attributes in quadrant III do not shift to quadrant I. Attributes in quadrant III are products presented hygienically, taste good according to consumer tastes, smell good, size is appropriate. given as ordered, Prices according to quality, Prices offered are affordable, Prices are competitive, Employees are knowledgeable.

Attributes in quadrant III have not yet become a priority for improving performance, apart from being considered low in importance, companies should prioritize improvements to attributes in quadrant I (top priority).

Quadrant IV (Excessive)

The attributes contained in this quadrant have a low level of importance according to Gundaling Farmstead consumers, but have good performance so they are considered excessive by consumers. Attributes included in this quadrant are employees communicating well, employees giving full attention when serving and employees being responsive in responding to consumer wants and needs.

Even though the attributes in this quadrant are considered excessive, it is better if the company maintains them. If a company can provide more than consumers expect, then this will be an advantage for the company.

Relationship between Science Results and CSI

The results of the CSI value show that consumers are satisfied with the products, services and prices provided. The CSI value is determined by the average score for the level of importance and performance of each attribute (Anggraeni, 2015). Consumers feel satisfied if their expectations are achieved and fulfilled and feel very satisfied if consumer expectations are exceeded or exceed their expectations. The CSI value is directly proportional to the average level of performance and its importance.

Table 5. Relationship between IPA and CSI results.

Source: 2023 Research Results at Gundaling Farmstead Berastagi.

Based on the table above, the Customer Satisfaction Index value for the Gundaling Farmstead attribute is 75.0% or 0.750. This shows that in general Gundaling Farmstead’s satisfaction index for the analyzed attributes is satisfied, namely in the scale range of 0.60-0.80. According to Muharastri (2008) the value of the Customer Satisfaction Index (CSI) can be increased by making improvements to the performance attributes from the results of Importance Performance Analysis (IPA).

Cronin and Taylor (1992) found a strong and positive causal relationship between overall service quality and satisfaction. Zeithmal (1996) defines service quality as a form of attitude that is related to but not the same as satisfaction. In general, what can be concluded from a number of studies is that service quality is related to and determines customer satisfaction (Anderson, 1994).

CONCLUSIONS

Based on the results and discussion in this research, the following conclusions can be drawn: the CSI results showed that the level of consumer satisfaction with all attributes was 75%, indicating that consumers were in the satisfied category with all attributes. Assessment of product quality, price and service quality from the IPA and CSI results showeds suitability. The average level of importance score in this study was 417.08 and the average level of performance score was 375.6. The suitability level score in this study was 90.10% with a range of 84≥100%. It fell into the suitability level category, namely it was very suitable so it needs to be maintained. And the attributes that the company must improve were in quadrant I, namely packaging attributes that protect the product and are attractive, strategic location and attractive spatial design.

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