International Data Corporation (IDC) stated that the market share of smart phones in Indonesia is very large with Samsung in the top rank. More and more smartphone brands in the Indonesian market causing smartphone companies to always improve the quality and innovate their products, especially for old brands so that their presence is maintained. The purpose of this study was to determine the respondent characteristics of Samsung smartphones in Special Capital Region of Jakarta, analyze the influence of brand image, product quality, after-sales service on repurchase decisions and formulate Samsung's managerial implications regarding strategies in maintaining Samsung smartphone consumer repeat purchase decisions. This study used a quantitative approach that is carried out by distributing questionnaires to respondents. Data is collected from November to December 2018. The respondents were determined by purposive sampling. Data processing techniques using SEM-PLS with SmartPLS M2.0 and descriptive analysis using Microsoft Excel. The results show that product quality and after-sales service have a significant influence on repurchase decisions, while brand image rejects the hypothesis, which has a positive but not significant effect. The managerial implication that Samsung can use as a manufacturer is to maintain the quality of durability and product reliability and provide special attention and comfort to smart phone users in accessing warranty claims on the products they have owned.

Анотація наукової статті з економіки і бізнесу, автор наукової роботи - Raditya Bayu, Yuliati Lilik Noor, Krisnatuti Diah


Область наук:
  • Економіка і бізнес
  • Рік видавництва: 2019
    Журнал: Russian Journal of Agricultural and Socio-Economic Sciences

    Наукова стаття на тему 'ANALYSIS OF THE EFFECT OF BRAND IMAGE, PRODUCT QUALITY AND AFTER-SALES SERVICE ON REPURCHASE DECISION OF SAMSUNG SMARTPHONES'

    Текст наукової роботи на тему «ANALYSIS OF THE EFFECT OF BRAND IMAGE, PRODUCT QUALITY AND AFTER-SALES SERVICE ON REPURCHASE DECISION OF SAMSUNG SMARTPHONES»

    ?DOI 10.18551 / rjoas.2019-08.03

    ANALYSIS OF THE EFFECT OF BRAND IMAGE, PRODUCT QUALITY AND AFTERSALES SERVICE ON REPURCHASE DECISION OF SAMSUNG SMARTPHONES

    Raditya Bayu *

    Department of Business and Management, Faculty of School of Business, Bogor Agricultural University, Bogor, Indonesia

    Yuliati Lilik Noor, Krisnatuti Diah

    Department of Economics, Faculty of Economy and Management, Bogor Agricultural University, Bogor, Indonesia

    * E-mail: bayu Ця електронна адреса захищена від спам-ботів. Вам потрібно увімкнути JavaScript, щоб побачити її.

    ABSTRACT

    International Data Corporation (IDC) stated that the market share of smart phones in Indonesia is very large with Samsung in the top rank. More and more smartphone brands in the Indonesian market causing smartphone companies to always improve the quality and innovate their products, especially for old brands so that their presence is maintained. The purpose of this study was to determine the respondent characteristics of Samsung smartphones in Special Capital Region of Jakarta, analyze the influence of brand image, product quality, after-sales service on repurchase decisions and formulate Samsung's managerial implications regarding strategies in maintaining Samsung smartphone consumer repeat purchase decisions. This study used a quantitative approach that is carried out by distributing questionnaires to respondents. Data is collected from November to December 2018. The respondents were determined by purposive sampling. Data processing techniques using SEM-PLS with SmartPLS M2.0 and descriptive analysis using Microsoft Excel. The results show that product quality and after-sales service have a significant influence on repurchase decisions, while brand image rejects the hypothesis, which has a positive but not significant effect. The managerial implication that Samsung can use as a manufacturer is to maintain the quality of durability and product reliability and provide special attention and comfort to smart phone users in accessing warranty claims on the products they have owned.

    KEY WORDS

    Brand image, repeat purchase decision, product quality, after-sales service, SEM-PLS.

    International Data Corporation (IDC) stated that the smartphone market share in Indonesia is so large. Smartphone sales rose by as much as 17% or as much as 29.3 million units in 2016, so this sector is quite feasible to be worked on by both foreign and local companies. The development of the smartphone market in Indonesia shows that competition between companies both foreign and local compete to enter and create distinctive characteristics of their own strategies in getting consumers such as creating products and presenting new smartphone brands. The emergence of these new brands needs to be taken into consideration for brands that have long been in Indonesia so that their existence is maintained. The development of Indonesia's smartphone market share can be seen in Figure 1.

    The existence of Samsung is still in the top rank in terms of smartphone market share achievements in Indonesia. This is certainly the strategies and policies implemented by Samsung itself. Product innovation continues to be carried out by Samsung smartphone brands to attract the attention of consumers, so consumers are willing to buy products that have been produced. Samsung's market share had experienced an increase in 2012-2013, but in 2014-2016 it had decreased. According to Hadi (2015), one of the things that made Samsung's sales declined due to the increasingly widespread smartphone brands from

    China such as Asus, Vivo, Oppo, Xiaomi, Huawei, Meizu, OnePlus (others) which took the segmentation of Samsung's middle-class smartphone market. The decline in Samsung's market share in 2016 was due to one of the best smartphone product outputs, the Samsung Galaxy Note 7, which product specifications were considered a failure because they could explode under certain conditions. The Samsung Galaxy Note 7 at its product launch received a very positive response from various circles, but because there was a production failure on the smartphone's battery, Samsung announced the decision to recall the Galaxy Note 7 from the world market on September 2nd 2016 which make some people (consumers) feel disappointed and threatened and switch their phones to other brand products.

    50 40 30 20 10 0

    Samsung

    Apple

    LG

    Lenovo

    ZTE

    Others

    2012 2013 2014 2015

    2016

    Figure 1 - The development of Indonesia's smartphone market share (Source: International Data Corporation, 2016)

    The Samsung brand continues to strive to maintain the quality of its products so they do not lose the market potential to lose the market. Similar problems can also occur in other smartphone companies in Indonesia, so that the application of new innovations and improvements to the quality of important products continues to be carried out as a way to survive in the market with quite diverse competing products. Circulation of smartphones that are so diverse in the market with the types, shapes, specifications and brand names that exist, in the end consumers determine in making purchasing decisions. Consumers can be selective in choosing tastes, views, and beliefs in a brand that is believed to be good and suitable for purchase. Positive brand image is important in keeping consumers from moving to other brands.

    Besides building a brand image, maintaining product quality is also an important thing. Product quality is things that are offered to the market to get attention, be bought, used or consumed that can satisfy consumer desires (Sundalangi et al. 2014 року). The better the quality of the product produced, the better chance for consumers to make purchasing decisions. The general purpose of establishing the quality of the product itself is to convince consumers that the product is the best according to consumer needs. Brand image and product quality can also make consumers make repurchase decisions on the products offered and increase market share. This is in line with the research of Devaraj et al. (2001) which states that good product quality can provide a good image of a product, thus creating a intention to re-buy from customers and Keller (2008) reveals that a quality product must be supported by a strong brand to become the market ruler.

    Besides the formation of consumer preferences for brand and product quality, providing after-sales services to consumers can also increase consumer preferences in viewing products from preferred brands and product repurchase decision making. Boyd et al. (2000) said after-sales service is one dimension of consumer consideration in making purchasing decisions before dropping to choose products that suit their needs and desires. Smartphone companies even dare to provide after-sales services in the form of compensation if the product is not in good quality or not in accordance with the promotion delivered to convince consumers better. This is done to maintain consumer believe in the products that have been

    purchased, as well as to keep consumers from being able to repurchase and not move to other smartphone competitors.

    Regarding aftersales service, some Samsung consumers still feel bad about the aftersales services provided by Samsung when viewed from handling unpleasant defects and the length of time to repair or replace parts that are not in accordance with the promised time as in LCD replacement cases ( Junaidi 2016). These things caused many consumers complain about the after-sales services provided by Samsung. Based on the description of above regarding the phenomenon that occurred in the Samsung smartphone industry, the purpose of this study was to identify the respondent characteristics of Samsung smartphones in the DKI Jakarta area, analyze the influence of brand image, product quality, after-sales service on repurchase decisions Samsung smartphones in the Special Capital Region of Jakarta area and formulate strategic recommendations in maintaining the decision to repurchase Samsung smartphone users.

    LITERATURE REVIEW

    Brand image is an important thing for a company because the brand can reflect the manufacturer's quality of a good product or service. A brand image is a name, term, sign, symbol, design, or a combination of all that is intended to identify the seller's goods or services or a group of sellers and to differentiate them from competitor's goods or services (Kotler 2008). Rangkuti (2004) explains that brand image is a set of brand associations that are formed and embedded in the minds of consumers. Brand image is a representation of the overall perception of the brand that is formed through information and past experience of the brand itself (Setiadi 2003). According to Aaker and Biel (1993), Engel et al. (1995) and Simamora (2008) brand image has three components, namely:

    • Corporate image, which is a set of associations that consumers perceive to companies that make products and services in a corporate network;

    • User image, which is a set of associations that consumers perceive to users who use goods or services, including the user itself, lifestyle, personality, social status;

    • Product image, which is a set of associations that consumers perceive to a product, which includes the product attributes, benefits for consumers, users, and guarantees.

    Quality is the totality of the features and characteristics of a product or service that depends on its ability to satisfy expressed or implied needs (Kotler and Keller 2009). According to Kotler and Armstrong (2008) product quality is a product characteristic that depends on its ability to satisfy customer needs that are stated or implied. Iskandar (2015) explains that if the quality of the products produced is good, then consumers tend to make repeat purchases, while the quality is not in accordance with their expectation, consumers will change their purchases to other similar products, where consumers will buy products that they believe are higher quality. Every consumer must have a different perception of product quality, but consumers will choose products that can satisfy their needs. Quality reflects all dimensions of product offerings that produce benefits for customers (Tjiptono and Chandra 2012). According to Garvin (1987) and Tjiptono (2008) there are eight dimensions in product quality that need to be continuously considered and developed, those are:

    • Product performance, related to the functional aspects of the product and the main characteristic (core product) that customers consider when they want to buy a product;

    • Features, the second aspect of performance that adds basic functions, which is related to additional features;

    • Reliability, related to the possibility of a product functioning successfully in a period of time and under certain conditions;

    • Conformance, related to the level of conformity of the product to the specifications that have been previously set based on customer desires;

    • Durability, a measure of the lifetime of a product. This characteristic is related to the durability of a product;

    • Serviceability (ease of repair), a characteristic related to speed, ease, and accuracy in repairs;

    • Aesthetics, a characteristic of beauty that is subjective so that it is related to personal consideration and reflection or individual choice;

    • Perceived quality, which is subjective, is related to customer feelings in consuming products, such as increasing self-esteem.

    After-sales service is a service provided by producers to consumers after the consumer bought a product (Kotler and Keller 2009). According to Tjiptono (2008) there are several alternative strategies that can be done by companies to reduce the possibility of uncertainty by providing after-sales services, namely providing guarantees to reduce consumer perceptions of the risk of purchasing, repair services, and providing replacement parts . According to Levit, quoted by Tjiptono (2008), stated that the more sophisticated the technology of a generic product such as a car, a photocopy machine, a computer, the sales will depend on the quality and provision of accompanying customer services such as show rooms, delivery, repair and maintenance facilities, application assistance, operator training, installation consultation and warranty.

    Budiarto and Tjiptono (2003) suggest that after-sales service is needed especially in relation to efforts to create customer satisfaction and repurchase. After-sales service measurements combine from several research journals namely Banerjee (2010), Angelova and Zekiri (2011), Fazlzadeh et al. (2011), Neha and Manoj (2013), Diyah et al. (2013), Kidane and Sharma (2016) and Khan et al. (2016). Based on these studies, the dimensions of after-sales service that can be applied to smartphone products are the provision of guarantees, information technology assistance through mobile phone applications and customer service.

    The interest in repurchasing is basically the behavior of customers who respond positively to the quality of the services of a company if they meet consumer expectations or even exceed customer expectations, customers will intend to revisit or re-consume the company's products and customers will even convey good things to others (Kotler and Keller 2009). Repurchases occur if a product purchased with an experiment turns out to be satisfying or more satisfying than the previous brand, so consumers want to repurchase or repurchase shows purchases that occur after consumers have experience with products and companies (Schiffman et al. 1994). Repurchase behavior is often associated with loyalty. Evans and Laskin (1994) said in his research that loyal customers are people who make repeat purchases from similar companies, notify other potential customers through word of mouth and become an antidote to attacks from competitors. The interest in repurchasing can also be claimed as buying interest. Assael (1998) explains buying interest is a behavior that appears as a response to an object or is also an interest in repurchasing which shows the customer's desire to repurchase.

    A positive image can be strength for the brand used by a product. The research conducted by Wijaya and Astuti (2018) found that brand image results have a positive and significant effect on consumer repurchase decisions, the better the brand image that can be created, the higher the decision to buy again from Berrybenka consumers in the Semarang region . Significant influence between brand image on purchasing decisions is also in line with research conducted by Huang et al. (2011), Ain and Ratnasari (2015) and Paramananda and Sukaatmadja (2018).

    This indicates that the higher the brand image perceived by consumers, the higher the consumer's interest in repurchasing (Chen and Hsieh 2011). Ranjbarian et al. (2012) also stated that brand image indirectly affects repurchase decisions in Iranian department stores that are mediated by customer / consumer satisfaction. The decision to repurchase a product caused by the creation of a good brand image can help companies achieve good financial performance. This is consistent with the statement of Roberts and Dowling (2002) which states that the brand image of a company is valuable intangible capital that is difficult to imitate and can help the organization to achieve sustainable and superior financial performance.

    Previous research related to product quality on repeat purchase decisions is as follows: Kotler and Armstrong (2008) state that the better the quality of the products produced, the more opportunities for consumers to make purchasing decisions. Product quality is everything that is offered to the market to get attention, be bought, used or consumed that can satisfy consumer desires (Sundalangi et al. 2014 року). This is reinforced by the study of Lin and Lin (2007) which explains that product quality is the most important thing in purchasing decisions. Kurniawan et al. (2010), Lin et al. (2011), Isyanto (2012), Singh M (2013), Wulansari (2013), Sun et al. (2014 року), Iriani and Tunjungsari (2015) and Susanto (2016) state that product quality has a significant influence on consumer purchasing decisions and some of these studies product quality are among the most dominant factors in the decision to buy back a product by consumers.

    Faradiba and Astuti (2013) also stated that product quality has a positive effect on repurchase decisions. Whereas from the research conducted by Bakator and Petrovic (2016), product quality has a negative effect on product purchasing decisions and research from Yulisetiarini et al. (2011) states that product quality has no significant effect on consumer repurchase decisions. But research conducted by Dewi et al. (2015) sharpens the results of research that states the influence of product quality on repurchase decisions even with an intermediate variable. The study obtained results that state product quality indirectly affects consumers 'repurchasing interest in fish products in the Semarang region with mediated purchasing decisions.

    Previous research related to after-sales service for repeat purchase decisions is as follows: Boyd et al. (2000) say after-sales service is one dimension of consumer consideration in making purchasing decisions before dropping to choose products that suit their needs and desires. According to Levitt in Diyah et al. (2013) argue that product sales with the adoption of sophisticated technology depend on the quality of the product itself and the accompanying after-sales service. In buying a product, consumers expect all goods purchased can be followed by good after-sales service (Isaac et al. (2013). This indicates a significant influence between after-sales service on purchasing decisions, as expressed in Ruusen's research (2014 року) , Saidin et al. (2015) and Kriswandari (2010). Besides that, Bayhaqi's (2006) research also emphasizes that service quality also has an indirect positive effect on consumers 'buying interest with customer satisfaction as its mediating variable. Wijaya's (2019) research results confirmed the results obtained in the study of Ranjbarian et al., which states that after-sales services have a significant positive effect on repurchase intention through customer satisfaction, indicating that consumers 'repurchasing interest can be improved through good after-sales service to produce high satisfaction in consumers.

    RESEARCH FRAMEWOK

    Based on the background and the description of the previous research, this study looks at how the influence of each independent variable namely brand image (X1), product quality (X2) and after-sales service (X3) on purchasing decisions (Y). For more details, we can see the relationship between independent variables and the dependent variable in Figure 2.

    Figure 2 - Research Framework

    Research hypothesis:

    H1: Brand Image has a positive effect on repurchase decision;

    H2: Product quality has a positive effect on repurchase decision;

    H3: After-sales service has a positive effect on repurchase decision.

    METHODS OF RESEARCH

    The research to obtain data was carried out in November - December 2018 at Samsung service center outlets in the Special Region of Jakarta area (East Jakarta, North Jakarta, Central Jakarta, South Jakarta and West Jakarta).

    This research is a quantitative description research conducted by the survey method approach. This survey method is carried out through the distribution of structured questionnaires to consumers or users of Samsung smartphone who are willing to be the respondents in this study. The questionnaire was given directly to respondents in Samsung service outlets located in Special Region of Jakarta area. Respondents are Samsung smartphone consumers or users and have done Samsung after-sales service at least once.

    The data source in this study consisted of primary data and secondary data. Primary data obtained from the results of questions and statements of respondents through questionnaires. Questionnaires given to respondents contain closed types of questions (structured) so that respondents are limited in the space giving answers to alternative answers that have been provided. The answers to structured questions of respondents used the Likert scale (Summated Rating Scale). Likert scale is used to measure preferences, opinions and perceptions of a particular person or group of people about social events or symptoms, and besides that Likert scale is a psychometric scale that is commonly used in scale questionnaires which are most widely used in research in the form of surveys (Sugiyono 2012). Secondary data was obtained from the Annual report of Samsung, literature studies, articles, internet and other publications related to the research.

    The sampling method is done by non-probability sampling techniques through a convenience sampling approach. Sumarwan et al. (2015) stated that non-probability sampling technique means that in determining the sample (example) no opportunity is needed so that the data generated only applies to people who are respondents to the study. Convenience sampling is chosen based on the consideration of the convenience of the researcher in getting the data he wants to obtain. According to Sugiarto et al. (2003) convenience sampling is sampling that is based on the availability of elements and the ease of obtain. Determination of the number of samples in this study amounted to 100 people which refers to the theory of Hair et al. (2006) that the use of data analysis methods Structural Equation Modeling (SEM) the minimum number of samples is 100 people, for models that contain five constructs or less, with each variable consisting of more than three observed variables and high communalities. Respondents in this study were consumers who used Samsung smartphones in the Special Region of Jakarta area. The criteria of respondents in this study were: 1) At the time of the interview, the respondents involved actively used Samsung smartphones, 2) Respondents had done after-sales service at Samsung's service center outlets.

    Demographic variables are variables that can reflect or explain the characteristics of the respondents. In this study the demographic variables used were gender, age, education, type of work and level of expenditure per month. Independent and dependent variables, measurement dimensions and indicators and statements in this study are shown in Table 1.

    Data processing in this study was carried out with several analyzes. The analysis in question includes Descriptive Analysis and analysis using Structural Equation Modeling-Partial Least Square (SEM-PLS) which is processed using SmartPLS 2.0 Software. Descriptive analysis is intended to explain the demographic characteristics of respondents, while analysis using SEM-PLS is intended to explain the relationship between the variables studied. But before the data is processed and analyzed using SEM-PLS, validity test and level of consistency (reliability test) must be done on the questionnaire which is the measurement tool in this study.

    Table 1 - Variables and research dimensions

    Variables Dimention Indicators Statement

    Exogenous Latent Variable

    Brand Image Onrnnrato 1 m ane CI1 Samsung smartphones are a memorable brand

    (X1) coi poi ate image CI2 Samsung smartphones are well-known brand

    User Image UI1 Having a Samsung smartphone makes me proud

    UI2 Samsung smartphones are brands that reflect high social status

    Product image PI1 Samsung mobile phones have clear product characteristics

    PI2 Samsung smartphone products give a positive impression on consumers

    PI3 Samsung smartphones are easy to use

    Product Quality Performance PF1 Samsung smartphones have high-quality operating system performance

    (X2) PF2 Samsung smartphones are equipped with the latest and sophisticated

    features

    Features FT1 Samsung smartphones are comfortable when used

    FT2 The operation of the Samsung smartphone is relatively easy

    FT3 Samsung smartphones have good camera resolution

    Realibility RL1 Samsung smartphones have good quality in the hardware sector

    RL2 Samsung smartphones have good quality in the software sector

    Durability DR1 Samsung smartphones have long lifetime usage

    DR2 Samsung smartphones have a long-lasting battery quality

    Aesthetics AS1 Samsung smartphones have a unique design

    AS2 Samsung smartphones have a variety of attractive colors

    Service ability SA1 Samsung has the speed and accuracy in services

    SA2 Completeness of spare parts availability

    SA3 Friendly and fast service at Samsung Service Center

    SA4 Samsung provides a call center that can be contacted at any time

    Perceived quality PQ1 Samsung smartphones give a high self-image to users

    PQ3 Samsung smartphones are good quality

    PQ4 Samsung smartphones have specifications that consumers want

    Confronmance CF1 Samsung smartphones have good functional benefits such as for

    telephones / sending short messages

    CF2 Samsung smartphones have benefits in accessing internet / email /

    youtube / online games

    After-Sales Warranty GR1 Samsung is fast and responsive to warranty claims

    Service GR2 Samsung can fulfill its promise of warranty claims in accordance with the

    (X3) applicable terms and conditions

    GR3 Samsung makes it easy for consumers to access the repair and

    compensation services

    Aplication BA1 Samsung provides services in the form of an easy-to-use mobile phone

    assistance application

    BA2 Samsung smartphones have applications that can make it easier for

    users to get the applications they need

    Customer service CS1 Service center service is good

    CS2 Samsung serves all customer needs

    Endogenous Latent Variable

    Purchase Decision (Y) KPU1 I decided to re-buy a Samsung smartphone for the next purchase

    KPU2 I will be loyal to using Samsung mobile phone products

    KPU3 I will recommend Samsung smartphone products to others

    RESULTS AND DISCUSSION

    This study involved 100 respondents in accordance with predetermined characteristics, namely respondents as Samsung brand smartphone users and had done the brand aftersales service in the past year. Sampling of respondents (interviews) was carried out in several official Samsung outlets in the Special Region of Jakarta area. Demographic aspects of the respondents described in this study include gender, age, education level, type of work, and level of expenditure per month. Distribution of characteristics of respondents can be seen as complete in Table 2.

    Samsung smartphone usage behavior referred in this study will further discuss the Samsung smartphone consumer's own behavior which includes the period of Samsung smartphone usage, reasons for respondents in Samsung smartphone selection, reasons respondents to continue to use Samsung smartphones and Samsung smartphone after-sales service user behavior. The behavior of Samsung smartphone users is more clearly seen in Table 3.

    PLS is an alternative approach that shifts from a covariant SEM-based approach to a variant-based SEM (Ghozali 2006). SEM based on covariance generally tests causality while PLS is more predictive model. Jogiyanto and Willy (2009) stated that in modeling with

    prediction purposes, it can be done without a strong theoretical basis, and can ignore a number of (non-parametric) assumptions and the accuracy parameters of predictive models can be seen from the R-square. In forming the PLS model as a whole, we must first test the evaluation of the measurement model (outer model) by testing convergent validity, discriminant validity and composite reliability and evaluating structural models by looking at the R-square value for each endogenous latent variable , as predictive power from structural model.

    Table 2 - Distribution of respondents based on the characteristics of respondents

    Charateristics Catagories Respondents (%) Charateristics Catagories Respondents (%)

    Gender Man 52 Occupation Household Mothers 17

    Women 48 Students 6

    Total 100 State-owned enterprise employees 8

    Age < 20 years 20 - 30 years 31 - 40 years 4 47 25 Private employees Entrepreneur / Professional Others 50 15 4

    41 - 50 years 20 Total 100

    > 50 years 4 IDR 1.000.001 - I DR 2.000.000 9

    Total 100 IDR 2.000.001 - IDR 3.000.000 23

    Education High school / 56 IDR 3.000.001 - IDR 21

    equivalent Associate Degree 12 4.000.000 IDR 4.000.001 - IDR 5.000.000 21

    Bachelor Degree 27 IDR > 5.000.000 26

    Post-graduate Degree 5 Total 100

    Total 100

    Table 3 - Behavior of Samsung smartphone users

    Consumers Behavior Categories n (%) Consumers Behavior Categories n (%)

    Number of Samsung smartphone 1 piece 43 Place to do the service Official Samsung store 3

    ownership 2 pieces 37 Samsung official 93

    service center

    3 pieces 10 Common mobile phone 4

    counters

    > 3 pieces 10 Total 100

    Total 100 Cost range for after-sales Free 21

    Alasan Pembelian smartphone Samsung Follow the trend 9 services IDR 50.001 - IDR 26

    Reasons for Purchasing a Samsung 100.000

    smartphone Affordable prices 15 IDR 100.001 - IDR 17

    200.000

    Good brand image 13 > IDR 200.000 36

    Samsung brand 29 Total 100

    popularity

    Product 34 Reasons for still choosing Product sophistication 35

    specifications Samsung smartphones

    Total 100 Product strength and 33

    durability

    Frequency of using after-sales services 1 time 81 Ease of repairs 15

    2 times 15 (service)

    3 times 3 Product display 10

    > 3 times 1 Popular brand 7

    Total 100 Total 100

    Use of servive services other than Never 87

    Samsung official service center Yes 13

    Total 100

    n = respondents

    According to Hair et al. (2010) latent variables can not be measured and observed directly, but are measured through one or more indicator variables. The size of the correlation between indicators and latent variables can be known through the calculation of load factors (loading factors):

    • Convergent Validity; in this study, there is an outer loading value that shows a number <0.7 the calculation must be done several times until all indicators get the

    value of outer loading >0.7 and can be seen in Figure 3 on the results of loading factors;

    • Discriminant Validity; in the reflective measurement model the indicator is assessed based on the value of AVE (Average Variance Extracted), the value must be greater than 0.5. The results of discriminant validity can be seen in Table 4;

    • Composite Reliability; is a reliability test in PLS where the results show the level of accuracy, consistency of the accuracy of a tool (questionnaire) in making measurements. Composite reliability is considered good if it has a value of more than 0.7. Composite reliability can be seen in Table 4.

    Table 4 - Discriminant validity and composite reliability test results

    Dimentions / indicators AVE ( > 0.5) CR (> 0.7) Dimentions / indicators AVE ( > 0.5) CR (> 0.7)

    Corporate Image 0.81940 0.90073 Aesthetics 0.75240 0.85851

    User Image 0.84375 0.91525 Preceived Quality 0.68088 0.81008

    Product Image 0.65359 0.84957 Service Ability 0.67508 0.86169

    Performance 0.74649 0.85477 Warranty 0.78938 0.91828

    Features 0.72106 0.83772 Application Assistance 0.74159 0.85063

    Conformance 1.00000 1.00000 Customer Service 0.87648 0.93418

    Realibility 0.81471 0.89788 Repurchase Decision 0.70323 0.87663

    Durability 0.76188 0.86474

    Figure 3 - Results of loading factor (left) and t-count (right) in the analysis of the SEM-PLS model

    The structural model (inner model) describes the hypothesis that has been built in this study which will then be tested against the hypothesis. The results of the SEM-PLS model in this study can be seen in Figure 3. Simamora (2005) states that the hypothesis is a statement which at the time of disclosure is unknown, but allows it to be tested in empirical reality. Evaluation of Goodness of fit on the inner model can be measured using R-square dependent latent variables and using Q-square predictive relevance for structural models

    (Latan and Ghozali 2012). Q2 is used to measure how well the observation value generated by the Q-square model must be greater than zero (> 0), which indicates that the model has a good predictive model ability (Hair et al. 2010). The results obtained in this study using the PLS method and using software support SmartPLS M2.0.

    The R-square result obtained is 0.47175. This gives the meaning that the model of this study is the decision to repurchase Samsung smartphones can be explained by independent variables (brand image, product quality and after-sales service) of 47.2% and the remaining 52.8% explained by other variables outside of the model studied. The acquisition of the R-square value is then entered into the Q-square equation to determine the magnitude of the prediction model that can be done. Based on the calculation results obtained by the Q-square value, amounting to 0.222784 (0.223).

    The hypothesis test is used to test the effect of partially exogenous variables (X) on endogenous variables (Y) by looking at the t-values ​​in each path. The inner weight coefficient value of the structural model is said to be significant or the hypothesis is declared significant and has a direct effect, if the value of the path coefficient obtained is positive and the t-count value is greater than the t-table value (1.96) with a 95% confidence level.

    Table 5 - Results of hypothesis test

    Hypotesis Coefficient inner weight [t-hitl Conclusion

    Brand image ^ Repurchase decision (+) Quality product ^ Repurchase decision (+) After-sales service ^ Repurchase decision (+) 0.147 0.299 0.391 1.296 2.829 * 2.724 * H1 denied H2 accepted H3 accepted

    *) Shows t-value > 1.96 or significant. (+ Shows a positive relationship.

    Based on the results of testing the hypothesis, it can be seen that the brand image has a positive coefficient value but the t-count value is smaller than t-table (1.96), which means that it is not significant. This indicates that there is no influence between the brand image to make decision to buy Samsung smartphones. This result is in line with the research conducted by Arista and Astuti (2011), Bloemer et al. (1998) which state that the brand does not have a direct positive effect on consumer purchasing decisions and loyalty, and Hanzaee and Farsani (2011) who obtained the results of the study did not have an indirect relationship between brand image of consumer purchasing decisions, even through satisfaction.

    Samsung smartphone consumers have more confidence in the reliability and durability of these products, believe the product quality and believe the quality of after-sales services that they provide, which is like warranty. It is known from the respondents 'answers to the question of product quality and after-sales service, so that it can be concluded that the brand image indicator, corporate image, user image and product image is not a guarantee to brand image for repurchase Samsung smartphones.

    Based on the results of testing the hypothesis, it can be seen that the brand image has a positive coefficient value but the t-count value is smaller than t-table (1.96), which means that it is not significant. This indicates that there is no influence between the brand image of the decision to buy Samsung smartphones. This result is in line with the research conducted by Arista and Astuti (2011), Bloemer et al. (1998) which states that the brand does not have a direct positive effect on consumer purchasing decisions and loyalty, and Hanzaee and Farsani (2011) who obtained the results of the study did not have an indirect relationship between brand image of consumer purchasing decisions, even through satisfaction.

    Samsung smartphone consumers have more confidence in the reliability and durability of these products, believe in product quality and believe in the quality of after-sales services that they provide, which is like warranty. It is known from the respondents 'answers to the question of product quality and after-sales service, so that it can be concluded that the brand image indicator, corporate image, user image and product image is not a guarantee to brand image for repurchase Samsung smartphones.

    The results of testing the hypothesis related to the quality of the product to srepurchase decision obtain significant results. This indicates that product quality has an effect on repurchase decisions. This research is in line with research conducted by Chowdhury (2017)

    which states that product quality influences repurchase decisions and there are eight dimensions of product quality (serviceability, conformance, aesthetic, perceived quality, reliability, features, performance and durability) that are considered by customers before or after choosing a brand from a particular smartphone. Good product quality, easier to create impressions and interests with consumers, which consumers will feel suitable with the model and size / features provided by the brand and tend to be lazy to find or replace with other brands that do not necessarily provide models or features that according to consumer tastes (Devi and Sugiharto 2017). This causes the better quality of the product offered, the greater the percentage of consumers to make a decision to repurchase the product (smartphone) from the brand.

    MANAGERIAL IMPLICATIONS

    Based on the research and analysis that has been done using SEM-PLS to analyze the effect of brand image, product quality and after-sales service on Samsung smartphone repurchase decision, managerial implications are obtained as follows:

    Table 6 - Managerial implications

    Variables_Managerial Implications_

    Product Quality aspects of product durability by maintaining and improving the quality of long-lasting

    Quality batteries and the durability of Samsung smartphones.

    Product reliability aspects by maintaining and improving the quality of the hardware and software sector of Samsung smartphones.

    Improve product quality (smartphone) by paying attention to the characteristics and specifications of users with the help of appropriate new technology. After-Sales Samsung companies pay special attention to smartphone users in their responsive reactions and Service easy access to services in making warranty claims on the products they have.

    Improve after-sales service of Samsung smartphones by improving service center services in _every authorized Samsung store and serving all the needs of users (consumers) with excellence.

    CONCLUSION AND SUGGESTIONS

    The conclusion of this study is that Samsung consumers or smartphone users are in the middle class social level that is active in the use of mobile phones in everyday life. Product quality and after-sales service influence repurchase decision, while brand image has no effect on Samsung smartphone repurchase decision. Based on the results of the study, the managerial implications for Samsung as a producer are to maintain the quality of durability (product life span, product durability) and reliability (related to the product functioning well in a period of time and under certain conditions) Samsung smartphone products and giving special attention to smartphone users in easy access make warranty claims about the products they have.

    Based on the results of the analysis and conclusions outlined above, the suggestions that the research proposes are in the form of further research to develop new research models using different variables from this study or can also analyze the relationship between exogenous variables in this study. This research is also limited to the perceptions of consumers who have carried out after-sales services on Samsung smartpone products, so that further research can be carried out to analyze the consumers of Samsung smartphones as a whole or can be for new prospective customers.

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    Ключові слова: Brand image / repeat purchase decision / product quality / after-sales service / SEM-PLS

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