THE EFFECT OF SERVICE QUALITY AND PROMOTION OF ...

The Effect of Service Quality, and Promotion of Satisfaction in Mediation Brand Image

Sekolah Tinggi Ilmu Ekonomi Indonesia – 2020 1

THE EFFECT OF SERVICE QUALITY AND

PROMOTION OF SATISFACTION IN MEDIATION

BRAND IMAGE (Case Study of DANA Users) 1st Sandi Kurniawan, 2nd Rama Chandra

Management

Sekolah Tinggi Ilmu Ekonomi Indonesia

Jakarta Timur, Indonesia

[email protected]; [email protected];

Abstract– This study aims to decide the effect of service quality,

promotion of customer satisfaction mediated by brand image in

Jakarta DANA users and the indirect effect of service quality on

customer satisfaction mediated by brand image, the effect of

promotion on satisfaction mediated by brand image.

The research strategy used is associative strategy. The population

in this study is the user of DANA in the Jakarta Noodle Factory and

surrounding areas. Samples taken as many as 100 respondents with

criteria, namely consumers who use DANA. The sampling technique

used was purposive sampling with a data collection instrument in

the form of a questionnaire. The data taken is primary data. This

study uses path analysis with the method Partial Least Square using

warpPLS 6.0.

This gives rise to the better brand image that is provided by DANA

then it will positively affect the higher level of satisfaction received

by the user. Brand image can mediate the effect of service quality

on customer satisfaction but promotion does not affect brand image.

Brand image mediates promotion of customer satisfaction. The

results of the calculations show that there are variables that are not

statistically significant. In other words brand image can be a

variable that mediates promotions towards customer satisfaction

Keyword: Service Quality, Promotion, Brand Image,

Customer Satisfaction, Advertise

I. INTRODUCTION

1.1. Issues In this era of globalization and an era that is very rapidly developing, this phenomenon is

where E-Commerce Marketing online or also known as E-Commerce, is an effort by to market

products and services and building relationships with customers through internet media. (Kotler and

Armstrong, 2013: 223). And in the role of E-Commerce, one cannot escape the role of the economy

which is currently the development of Financial Technology (FinTech). These business actors

include people who are familiar with up to date technology, the development of FinTech which

includes technological innovations in the financial sector, such as innovations in financial literacy,

personal banking, commercial banking, investment and so on.

FinTech is a combination of technology and financial features or it can also be interpreted as

innovation in the financial sector with a touch of modern technology. With the applicable legal basis,

both providers and users FinTech can carry out various financial activities more safely and

comfortably. Users don't need to worry about using FinTech because Indonesian banks ensure

consumer security, especially for the confidentiality of your data and information. on the other hand,

Bank Indonesia also ensures that every product or service FinTech provider has complied with the

stipulated regulations. The existence of FinTech is proof that technology is able to provide the

convenience needed by the Indonesian people in carrying out various financial activities, from

Sandi Kurniawan and Rama Chandra

Sekolah Tinggi Ilmu Ekonomi Indonesia - 2020 2

transactions to investments. considering the high number of users, it is not impossible that in the

future there will be new innovations in the world FinTech. (Iprice Group, 2019).

Currently, FinTech is still dominated by companies engaged in the payment sector. The

development of FinTech in Indonesia is also based on the needs of consumers, customers and

merchants. The nature of FinTech is indeed very user centric, so the focus is more on its users (Aydin

& Burnaz, 2016). When viewed from the user's point of view, especially in the financial sector, there

are many problems that can be resolved with FinTech.

One of the applications E-Wallet, which was included in FinTech until mid-2019, increased

50% from 2017 several companies that applied E-Wallet including Gopay, DANA, Paytren and

DOKU. With the most monthly active users besides OVO, LinkAja, and Jenius. This classification

is published in the ASEAN Mobile Payments 2019 report by Nomura. The development of the E-

Wallet is inseparable from the role of the OJK in efforts to develop efforts for economic development

in Indonesia.

Many companies in Indonesia make applications E-Wallet for solutions in Indonesia. Based

on the Q2 2019 interval data obtained from the top 5 annie applications E-Wallet with the most

monthly active users still occupied by local players, namely Go-Pay, OVO, DANA, LinkAja, and

Jenius.

The potential for the development of theapplication is E-Wallet also predicted to be even

more brilliant considering Indonesia's demographic bonus in 2030, where the population of

productive age will be bigger. Based on the results of research by Jakpat in collaboration with Daily

Social 74.6% of application users E Wallet are in the productive age of 20-35 years (Iprice Group,

2019).

Table 1.1 List of Ranking e-wallet in indonesia

Platform Rate Q1 2019 Rate Q2 2019 Count User

GOJEK 1 1 50 Juta

OVO 2 2 5 Juta

DANA 4 3 4 Juta

LINK AJA 3 4 4 Juta

JENIUS 5 5 500 Ribu

Author's data source, 2019.

The very important marketing mixes implemented by companies in marketing service

products (Lupiyoadi, 2014: 178) undertaking promotional efforts with cashback or discounted

promotions with the aim of meeting the needs and desires of users it is in harmony with the

statement.

Services and promotions can form the DANA brand image. According to Tjiptono, (2019:

187) brands are beneficial for producers and consumers. For producers, brands play an important

role as a means of identifying products and companies, a form of legal protection, a quality

assurance signal, a means of creating associations and unique meanings (differentiation), a means

of competitive advantage, and a source of financial return.

One other aspect that also needs attention iAs the development of FinTech products in

Indonesia has an impact on increasing competition in the digital economy industry, including e-

wallet-based FinTech, among the aspects that are the focus of PT Espay Debit Koe Indonesia in

running DANA, including services, marketing, trust, and partnerships are very important. in

running their business.

It is appropriate for the service industry based on DANA service where service quality is an

effort to focus on fulfilling the expectations, wants and needs of consumers so that they can be

conveyed correctly and correctly (Tjiptono, 2014: 268) regarding aspects of service quality DANA

is directed to provide full service to meet expectations of its users.

In addition to marketing services, especially promotion, it is also necessary to pay attention

to where promotion is one ofs the effort to meet the expectations of DANA users, the fulfillment



and expectations of these demands are expected to increase customer satisfaction. satisfaction is

the level of a person's feelings after comparing the performance or results he feels compared to his

expectations (Kotler, 2014: 150).

1.2. Problem Formulation

Based on the background of the problems described above, the researcher can formulate

problems in the research where, is there an effect of service quality, promotion, and brand image on

customer satisfaction with the following specifications:

1. Does Service Quality have a direct effect on Brand image?

2. Does Service Quality affect Customer Satisfaction?

3. Does Promotion have a direct effect on Brand Image?

4. Does Promotion affect Customer Satisfaction?

5. Does brand image affect Customer Satisfaction?

6. Does Service Quality have an indirect effect on Customer Satisfaction mediated by Brand

Image?

7. Does the promotion affect Customer Satisfaction mediated by Brand Image?

1.3. Research Purposes The research objectives to be achieved are:

1. To determine the effect of Service Quality on Brand Image

2. To determine the effect of Service Quality on Customer Satisfaction

3. To determine the effect of Promotion on Brand Image

4. To determine the effect of Promotion on Customer Satisfaction

5. To determine the effect Brand Image on Customer Satisfaction

6. To know the effect of Service Quality indirectly on Customer Satisfaction mediated by Brand

Image

7. To know the indirect effect of Promotion on Customer Satisfaction mediated by Brand Image

II. LITERATURE STUDY

2.1. Effect of Service Quality The company's development creates fierce competition. Various ways are done in order to get

customers and keep them. One of the strategies the company uses to be able to win the competition

is with good service quality. Customers are interested in buying a product or service because of the

good quality of service. explained that service quality is reflecting the comparison between the level

of service delivered by the company compared to customer expectations (Tjiptono, 2019: 75).

2.2. Service Quality Indicator According to Tjiptono (2019: 77) in evaluating services that are intangible, variable,

inseparable, and perishable, consumers generally use several attributes or factors:

1) Physical evidence, including physical facilities, equipment, employees and means of

communication.

2) Reliability, the ability of the staff and employees provide the promised service with immediate,

accurate and satisfactory.

3) Responsiveness, which is the desire of the staff and employees to assist customers or provide

services with responsive.

4) Security(assurance), including knowledge, skills, courtesy, and trustworthiness owned by its

staff free from danger, risk or doubt.

5) Empathy, which includes ease of making relationships, good communication, personal attention,

and understanding the needs of customers.

2.3. Promotion Effect Lupiyoadi (2014: 178) states that promotion is one of the marketing mix that is very important

for companies to implement in marketing service products. Promotional activities not only function

as a means of communication between companies and consumers, but also as a tool to influence

consumers in purchasing activities or using services according to their wants and needs. This is done

by using promotional tools, promotional tools that we include behavioral advertising, sales of

individual (personal selling), sales promotion, public relations (PR), the information by word of

mouth, direct marketing (marketing publication).

Advertising is a form of impersonal communication used by companies in communicating

their products, both goods and services. It further reveals that there are several types of advertising.

among others are as follows: (Ads that provide information, ads to persuade. Reminder ads, ads for



strengthening).

2.4. Promotion Strategy Tjiptono, (2019: 397) This strategy is usually designed for advertising, personal selling and

sales promotion purposes. Specifically, six integrated marketing communication strategies are

emphasized here, namely:

1) Promotion spending strategy

2) Promotion mix strategy

3) Media selection strategy

4) Ad copy strategy

5) Sales strategy marketing

6) Sales person strategy

2.5. Promotion Indicator Tjiptono (2019) argues that promotion aims to inform, influence and persuade, and remind

target customers about the company and its marketing mix. In detail these promotional purposes can

describe as follows:

1) Inform (Informing) a. Inform the market about the existence of a product new b. Introducing a

new way of using a product c. Delivering price changes to the market d. Explaining the price of

how a product works e. Inform the services provided by the company f. Correcting the wrong

impression g. Build a company image.

2) Persuading target customers (competition) a. Establishing a choice of brands has the advantage

of a safe transaction b. Switching the choice to a certain brand c. Changing customer perceptions

of product attributes d. Encourage purchases to shop right away e. Encourage buyers to accept

visiting salesmen (salesmen).

3) Improve (Reminding) a. Remind buyers that the product in question is needed in the near future

b. Remind buyers of places that sell company products c. Helping buyers remember even when

there is no advertising campaign. Keep buyers' first memories from falling on the company's

products.

2.6. Influence of Brand Image Brands are beneficial for producers and consumers, for manufacturers, brands play an

important role as a means of identifying products and companies, a form of legal protection, a quality

assurance signal, a means of creating associations and unique meanings (differentiation), a means

of competitive advantage, and a source of financial return for a brand. / identity, whether tangible

(such as names, brands, symbols, slogans, graphic designs, etc.) or intangible (for example, symbolic

values, special ties, personality, self-image, and so on) (Tjiptono, 2019: 187)

2.7. Brand Image Indicator The indicators that meet the brand requirements (Kotler, 2016: 327) include:

1) Energy differentiation measures the extent to which a brand is seen as different from others and

price strength.

2) Relevance measures the suitability and extent of brand appeal.

3) Esteem measures perceptions of quality and loyalty, or how well a brand is valued and respected.

4) Knowledge measures how aware and familiar consumers are with the brand and the depth of

their experience.

2.8. Effect of Customer Satisfaction Increasingly tighter competition, where more and more producers are involved in fulfilling

the needs and desires of consumers, causing each company to place an orientation towards customer

satisfaction as one of the main goals, Tjiptono (2019: 75) As for indicators of customer satisfaction

(Kotler, 2016):

1) Repurchase: repurchase, where the customer will return to the company to find goods / services.

2) Creating Word-of-mouth: in this case, customers will say good things about the company to

others.

3) Creating Brand Image: customers will pay less attention to brands and advertisements from

competitors' products.

4) Creating purchasing decisions in the same company buying other products from the same

company.



2.9. E-Commerce E-commerce is defined as the process of buying, selling, transferring or exchanging products,

services or information via computer networks via the Internet (Kozinets et al, 2010). By taking

traditional forms of business processes and leveraging social networking over the internet, a business

strategy can be successful if done right, ultimately resulting in increased customer, brand awareness

and revenue. Customer purchasing decisions are influenced by perception, motivation, learning,

attitudes and beliefs. Perception is reflected on how customers select, organize, and interpret

information to form knowledge.

2.10. FinTech (Finance Technology) FinTech is a combination of technology and financial features or it can also be interpreted as

innovation in the financial sector with a touch of modern technology (Pribadiono, 2016), is an

industry that moves very quickly and dynamically where there are many different business models

Dorfleitner et al, (2017), is a new financial service model developed through information technology

innovation (Hsueh, 2017).

2.11. Relations Between Variables Kotler (2016: 322) services whose dimensions are different in several ways from other products,

brands, or services designed to meet the same needs. Nuraini (2017) states that there is a direct and

positive relationship between service quality and brand image. It is appropriate for a service industry based on DANA services where service quality is an effort

to focus on fulfilling the expectations, desires and needs of consumers so that they can be conveyed

correctly and correctly (Tjiptono, 2014: 268). Surianto, et al (2019) Service Quality, Price Perception

and Promotion simultaneously have a significant effect on GrabCar customer satisfaction in

Yogyakarta. Indah (2016) can conclude that all independent variables, namely e-banking and service

quality simultaneously have a significant effect on customer loyalty.

In addition to services, marketing activities, especially promotion, also need to be considered,

where promotion is one of the very important marketing mixes implemented by companies in

marketing service products (Lupiyoadi, 2014: 178). The results of the research by Indriyani, et al

(2018) state that partially (individually) all independent variables, namely the variables of website

quality, trust, promotion, and price have a significant influence on customer satisfaction variables.

Image 2.12.1 Conceptual Research Framework

III. METHODOLOGY The research method used in this research is a survey approach because to obtain information and

data the researcher must communicate or ask the respondent's opinion on the statements listed in the

questionnaire. data analysis is quantitative or statistical, with the aim of describing and testing the

hypotheses that have been set (Sugiyono, 2018: 15). Looking at the unit of analysis above, the sampling in this study is to take the Purposive Sampling

technique. Selection of sampling aims to determine the sample by taking certain data that are deemed

appropriate and related to the research being carried out. As for the sample criteria that were considered by this study, namely DANA users in Jakarta in

November - December 2019. Because the number of target population was unknown, the researchers

decided to use 100 respondents, as Ghozali (2014: 30) argues that the size of the sample for PLS



testing is used to confirm the theory, but can also be used to explain the presence or absence of a

relationship between latent variables and to have a greater influence, a minimum recommended of 30

to 100 cases. In this study, data collection was carried out to obtain the information needed to limit the problems

in the study. The methods used are as follows: 1) Library Research 2) Observation 3) Documentation

In this study the author uses a questionnaire technique, where when the customer wants to make a

transaction, the writer first asks the customer whether the customer makes payment transactions using

the application. DANA or other electronic payments. If the respondent uses an electronic payment

system, the writer asks the respondent for availability to fill out a questionnaire if they are willing,

regarding the DANA application as the author's research material that is used by the customer

voluntarily. Before starting to distribute questionnaires to customers of the Mie Factory shop, the

author first asked for permission from the owner / management of the Mie Factory shop to conduct

research with a sample of respondents who visited the Noodle Factory, so that the author could

flyering or spread the questionnaire with the knowledge of the shop.

IV. RESULT AND DISCUSSION

4.1 Description of research object

Respondents in this study are users who live in the Jakarta area who have already become DANA

users and are in accordance with the criteria set by the researcher. The data used in this study were

obtained by distributing questionnaires. The number of questionnaires given to respondents to be

filled in was 100 questionnaires and carried out from November to December 2019 which are mainly

located at the Kelapa Gading Mie Factory, with some of the respondents being 40% of noodle factory

visitors, and 60% located in other places where DANA merchants are available.

Table 4.1 Description of Respondents By Gender, Age and Occupation

Keterangan Total Presentase

Jumlah Sampel 100 100%

Jenis Kelamin:

Laki-laki 35 35%

Perempuan 65 65%

Jumlah 100 100%

Usia:

18-32 tahun 81 81%

32-46 tahun 17 17%

47-60 tahun 2 2%

Jumlah 100 100%

Status:

Guru 1 1%

Honorer 1 1%

Ibu Rumah Tangga 3 3%

Mahasiswa 23 23%

Pegawai Negeri 6 6%

Pegawai/Karyawan 59 59%



Pengusaha 4 4%

Belum Bekerja 2 2%

Lainnya 1 1%

Jumlah 100 100%

Author's data source, 2019

4.2 Perception

Index Services Quality Perception (PL) The results of the calculation of the service quality variable are carried out on five indicators.

Respondents' answers and the results of descriptive calculations carried out on service quality are

presented in table 4.2 as follows: Table 4.2 Service Quality Variable Average Score Perception Index


Table 4.2 shows that the perception index for service quality variables is 79.44, including in the

high category. In the service quality variable, there is the highest indicator with an index value of

83.6, related to the PL6 code statement, DANA, which has a characteristic where each transaction

will get a notification message immediately, this indicates that most respondents agree or as expected

with an index point of 83.6. It can be interpreted that most of the respondents to the PL6 statement

gave answers according to what the researcher expected. Meanwhile, the lowest index of the service

quality variable has a point of 75.4 which represents the PL5 code where if there is a problem, you

will update the feature.

Promotion perception index (PR) The results of the calculation of the promotion variable are carried out on three indicators.

Respondents' answers and the results of descriptive calculations carried out on promotions are

presented in table 4.3 as follows: Table 4.3 Average Score Perception Index Promotion Variables

1 2 3 4 5

PL1 0 2 21 57 20 100

0 4 63 228 100 395

PL2 0 0 16 64 20 100

0 0 48 256 80 384

PL3 0 0 13 62 25 100

0 0 39 248 125 412

PL4 0 1 19 54 26 100

0 2 57 216 130 405

PL5 0 2 36 45 17 100

0 4 108 180 85 377

PL6 0 0 9 64 27 100

0 0 27 256 135 418

PL7 0 3 25 51 21 100

0 6 75 204 105 390

PL8 0 2 29 51 18 100

0 4 87 204 90 385

PL9 1 1 18 55 25 100

1 2 54 220 125 402

PL10 0 1 18 57 24 100

0 0 0 0 0 404

Rata-rata 79.44 Tinggi

Indikator Kode Jumlah Indeks KategoriFrekuensi Jawaban

Responsiveness

Assurance

Emphaty

Tangibles

Tinggi

80.4 Tinggi

80.8 Tinggi

83.6 Tinggi

78 Tinggi

77 Tinggi

79 Tinggi

76.8 Tinggi

Reliability

82.4 Tinggi

81 Tinggi

75.4




Table 4.3 shows that the perception index for the promotion variable is 80.05, including in the

high category. The highest index is found in the promotion indicator with an index value of 85 related

to the PR2 code statement of consumers using DANA because of attractive promos, meaning that

most respondents agree with the PR2 statement. Meanwhile, the lowest index is in the PR3 statement,

where the attractive DANA appearance makes me want to use DANA. points on the indicators of

persuading for the promotional variable there are 58 people who claim to be qualified in the

statement.

Brand Image Perception Index (BI) The results of the calculation for the research variable were carried out on the brand image variable

which consisted of four indicators. Respondents' answers and the results of descriptive calculations

are presented in table 4.4 as follows: Table 4.4 Average Brand Image Variable Score Persespi Index


Table 4.4 shows that the average perception index for the brand image variable is 75.7, including

in the high category. The highest index is in the Esteem indicator where esteem itself is how to

measure how well the brand is valued and respected, with an index value of 77.8 related to the BI4

code statement, namely use DANA because DANA is made in Indonesia to create a positive

consumer perspective because it is based on the product made in Indonesia. In relation to the BI1

code statement with an index of 68.2 where in the brand image category there is the lowest index

value for the brand image variable because DANA can be used in all merchants, it means that

consumers' perceptions are mostly about the DANA brand.

Customer Satisfaction Perception Index (KP) The results of the calculation of the research variables were carried out on the customer loyalty

variable which consists of four indicators. Respondents' answers and descriptive calculation results

are presented in table 4.5 as follows:

Table 4.5 Customer Satisfaction Variable Average Score Perception Index

1 2 3 4 5

8 9 27 46 10 100

8 18 81 184 50 341

3 6 21 57 13 100

3 12 63 228 65 371

1 0 28 52 19 100

1 0 84 208 95 388

0 1 25 58 16 100

0 2 75 232 80 389

1 14 20 48 17 100

1 28 60 192 85 366


Indikator

Relevansi

Esteem

Pengetahuan

BI1Diferensiasi

BI2

BI3

BI4

BI5

77.8 Tinggi

73.2 Tinggi

68.2 Tinggi

74.2 Tinggi

77.6 Tinggi

KodeFrekuensi Jawaban

Jumlah Indeks Kategori

1 2 3 4 5

PR1 3 9 14 49 25 100

3 18 42 196 125 384

PR2 0 0 11 53 36 100

0 0 33 212 180 425

PR3 1 2 23 58 16 100

1 4 69 232 80 386

PR4 1 0 14 62 23 100

1 0 42 248 115 406



81.2 Tinggi

76.8 Tinggi

85 Sangat Tinggi

77.2 Tinggi

Indikator

Menginformasikan

Membujuk

Mengingatkan





Table 4.5 shows that the perception index for the customer satisfaction variable is 79.83,

including in the high category. In the customer satisfaction variable, there is 1 index which is included

in the low category in the satisfaction variable vulnerability. That category with an index value of

74.8 is related to the KP6 code statement, namely I use Funds because other products have not

fulfilled my wishes. The highest indicator in this research variable is with an index of 83.6 with a

KP4 code statement, that is because the cashback offered by me is using DANA. It can be concluded

that most of the respondents even almost entirely agreed with the KP4 statement giving the answers

expected by the researcher.

4.3 Analysis Inner Model Evaluation structural models include compatibility testing of the model (model fit), the

pathcoefficient,and R2.Model suitability testing is used to test whether a model has a compatibility

with data which we can see through 3 test indices, namely Average path coefficient (APC), Average

R-square (ARS), Average variance inflation factor (AVIV) with APC and ARS criteria. accepted on

condition that the p-value <0.50 and AVIV <5 Ghozali (2014: 104). And to validate the overall

model,can be used Goodness Of Fit (GOF). AVIV 2.806 (Acceptable if<= 5, ideally<= 3.3) GOF

0.524

Tabel 4.6 Correlations among latent variables and errors


Tabel 4.7 Model fit indeks

Indeks P-value

APC 0.306 <0.001

ARS 0.520 <0.001

AARS 0.508 <0.001

AVIV 2.806 (Acceptable if<= 5, ideally<= 3.3)

GOF 0.524


Based on the table above, it can be seen that APC has an index of 0.306 with a p-value <0.001,

while ARS has an index of 0.520 with a p-value <0.001, for AARS has an index of 0.508 with a p-

value <0.001, and for the AVIV value it also shows an index below 5, which is 2.806, and a GOF

value of 0.524 with the criteria> 0.1 = Small,> 0.25 = Medium, and> 0.36 = Large. So overall it can

be concluded that the model is fit with the data.

K.Pel Promosi B.Image Kepuasaan

K.Pel 0.707

Promosi 0.812 0.71

B.Image 0.62 0.525 0.737

Kepuasan 0.771 0.733 0.492 0.755

1 2 3 4 5

KP1 0 0 27 46 27 100

0 0 81 184 135 400

KP2 0 1 19 52 28 100

0 2 57 208 140 407

KP3 0 2 24 50 24 100

0 4 72 200 120 396

KP4 0 0 14 54 32 100

0 0 42 216 160 418

KP5 1 2 14 62 21 100

1 4 42 248 105 400

KP6 0 5 26 59 10 100

0 10 78 236 50 374



80 Tinggi

81.4 Tinggi

79.2 Tinggi

80 Tinggi

Citra Merek

Keputusan Pembelian 74.8 Tinggi

83.6 Tinggi


Indikator

Repurchase

Word of Mouth



The inner model (structural model) describes the relationship between latent variables based on the

substantive theory. The structural model is evaluated using the coefficient of determination (R

square) for the dependent construct, the stone geiter Q-square test for predictive relevance, the three

of which can be seen in Figure 4.2.

Tabel 4.8 R-squared contributions

Kepuasan Pelanggan Total

Kualitas pelayanan 0,309

0,653 Promosi 0,211

Citra merek 0,133

Service quality, promotion and brand image contributed 65.3% to the variability of DANA user

satisfaction. This means that high or low respondents' perceptions of DANA's image are 65.3%

influenced by service quality, promotion and brand image, while 35% of DANA user satisfaction is

influenced by other factors. 65.3% of the contribution was contributed by service quality 30.9%,

promotion 21.1% and brand image 13.3%. The structural model can also be evaluated using Q2 where

the quantity of Q2lies between zero and one (0 ≤ Q2 ≤ 1). The closer to 1, the better the model. A

value of Q2> 0 indicates that the model has predictive relevance and vice versa if Q2<0 indicates that

the model lacks predictive relevance. By using Q2(Chin, 1998: 43), the value of the prediction

relevance can be calculated as follows:

Q2 = 1 - {(1-R12) {(1-R2

2)}

= 1- (1-0.39) ( 1-0.65)

= 1- (0.61) (0.35)

= 0.79

= 79%

Based on the above calculation results show that 79% can be explained by the model while the

remaining 21% can be explained by other variables including errors.

4.4 Hypothesis Testing and Direct Effect Analysis

This study uses four latent variables, namely service quality, promotion, brand image and

customer satisfaction. Through 25 indicators with statements, ten indicators for service quality, four

indicators for promotion, five indicators for brand image and six indicators for customer satisfaction.

Based on data processing, the results are as shown in the image below:

Image 4.1 Result Resource Model

Source: Output program WarpPLs processed 2019

The hypothesis tested is as follows::

Hypothesis Test This test is intended to test the hypothesis consisting of the following 7 hypotheses:

Table 4.9 Direct Effect

Kriteria Kualitas Pelayanan

Path Coefficients 0,570

Citra merek P-value 0,01




Hypothesis Test 1 H1 : It is suspected that service quality has a direct effect on brand image.

Based on Figure 4.1, there is a direct effect of service quality on brand image, the path coefficient

(beta) is 0.57 and it is statistically significant, the p-value is less than 0.05. This indicates that the

services provided by DANA managers are able to create a good brand perception in the eyes of

consumers, which in this case becomes a solution for all digital transactions. In connection with

Nuraini's research (2017) states that there is a direct and positive relationship between service quality

and brand image.


Kriteria Kualitas Pelayanan


Kepuasan Pelanggan P-value 0,01


Hypothesis Test 2

H2 : It is suspected that service quality has an effect on customer satisfaction.

The prediction of the influence of service quality on customer satisfaction obtained a path coefficient

(beta) of 0.4 and was declared significant with a statistical p-value less than 0.05. This indicates that

the services offered by DANA are in accordance with what DANA users expect as a substitute for a

wallet, becoming a digital wallet that provides convenience in transactions. This is in line with the

research of Juniantara et al (2018), where service quality has a positive and significant effect on

satisfaction, and consumer satisfaction has a positive and significant effect on consumer loyalty. This

shows that the better the consumer's perception of the price, promotion and quality of services

provided, the better customer satisfaction and loyalty.


Kriteria Promosi


Citra merek P-value 0,21


Hypothesis Test 3

H3 : It is suspected that promotion has a direct effect on brand image.

The assumption that there is a direct effect of promotion on brand image is based on Figure 4.2, it is

obtained a path coefficient (beta) of 0.062 and it is stated that it is not statistically significant with a

p-value of 0.21 where the requirements must be less than 0.05. This indicates that the DANA despite

promote through advertising or other media have not been able to give the impression of a brand

name /brand attached appropriate in the eyes or hearts of consumers. This is in line with Nuraini's

research (2017) which states that there is a direct relationship between promotion and brand image.


Kriteria Promosi




Hypothesis Test 4 H4 : It is suspected that promotion has an effect on customer satisfaction.

There is an effect of promotion on customer satisfaction, which obtains a path coefficient (beta) of

0.287 which is significant because there is a statistical p-value of 0.01 where these requirements meet

the criteria smaller than 0.05. This indicates that the promotion carried out by DANA is to make

customers continue to use it again, because DANA provides notifications in the form

ofpromotionsnotifying Discount, promos Voucher every day through media pages. This is in line with

research by Juniantara et al, (2018) which shows that promotion has a positive and significant effect

on consumer satisfaction. Based on the results of the analysis of the influence of service quality on

customer satisfaction.




Kriteria Citra merek




Hypothesis Test 5 H5 : Brand image affects customer satisfaction.

Alleged influence of brand image on customer satisfaction based on data processing obtained path

coefficient (beta) 0.21 can be stated significant with a p-value smaller than 0.05. Because DANA is

a product made in Indonesia, this indicates that the better the brand image provided by DANA will

positively affect the higher level of satisfaction received by users. The findings of research conducted

by Osman et al. (2015) show that service quality, satisfaction and brand image have a significant and

positive influence on customer satisfaction and loyalty in the Malaysian commercial banking

industry.

4.5 Hypothesis Testing and Indirect Effect Analysis This analysis is related to the effect of service quality on customer satisfaction with brand image

as the mediation, and related to brand image mediating promotion of customer satisfaction. The

mediation effect shows the relationship between the independent and dependent variables through

the connecting or mediating variable. The effect of the independent variable on the dependent variable

does not occur directly but through a transformation process represented by the mediating variable.

Hypothesis Test 6

H6 : It is suspected that service quality has an indirect effect on customer satisfaction mediated by

brand image.

Mediation analysis can be carried out if all direct effects between variables must be significant. This

shows that brand image is not a variable that can indirectly link product quality to customer

satisfaction.

Hypothesis Test 7

H7 : It is suspected that promotion has an indirect effect on customer satisfaction mediated by brand

image

Based on the results of the promotion analysis is a partial mediation between promotion and customer

satisfaction. This is based on the value of the direct effect of promotion on customer satisfaction with

a value of 0.287 and a p-value of 0.01.

V. CONCLUSION AND SUGGESTION 5.1 Conclusion Based on the results of the research that has been done and analyzed the data as described in the

previous chapter, the authors can draw the following conclusions:

1) Service quality has an effect on brand image. This shows that it creates a good brand perception

in the eyes of consumers which in this case is a solution for all digital transactions.

2) Service quality affects customer satisfaction. This shows that DANA customers' wishes can be

fulfilled according to expectations.

3) The promotion by DANA was not able to create a DANA brand image. This is supported by the

results of data processing which show that the path coefficient between promotion and brand

image is not significant.

4) Promotion has an effect on customer satisfaction. DANA promotions conducted by DANA in

print media are in accordance with the expectations and desires of users.

5) DANA's image as anservice provider is e-wallet able to meet the expectations of its users.

6) Brand image mediates the influence of service quality on customer satisfaction. This shows that

DANA service is able to create an image that matches user expectations.

7) Brand image is not a mediator between promotion and customer satisfaction. This is because

there is no promotional effect on brand image.



5.2 Suggestion Based on the results of the analysis as described in chapter 4 (four) regarding FUNDS, then:

1) Maintain a sophisticated security system, safe transactions and transactions that are easy and

practical without complicated procedures and continuous user verification.

2) Regarding the business strategy, keep improving theintegration featureconvenience system

cashless (Non-Cash)so that users are more familiar with digital payment systems.

3) Optimize on value to support more satisfied users to be more productive, efficient, and

competent. In building and developing digital economy technology that is always ready to be

relied on to create user satisfaction.

4) Remain as a provider of electronic transaction services that are easy, safe, and comfortable in

making transactions in accordance with the established image. So that users are more aware of

the usefulness and convenience of every transaction both offline and online

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