Analyzing crand equity of public transportation in padang

Cindy, felisa (2015) Analyzing crand equity of public transportation in padang. Masters thesis, UPT. Perpustakaan Unand.

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Abstract

Background of the Research Nowadays, Indonesia has development progress in all aspects. A great progress of construction in Indonesia already gave a big impact especially in terms of infrastructure that holds an important role as one of a driver of economic growth and development. One of the vital infrastructure is the highway which is the land of transportation that experiencing a rapid growth in Indonesia. The transportation plays an important role in order to develop our country for today and the future. Without transportation as a facility, we can’t expect to achieve maximum results to reach the goal of development. We realize that transportations are important in people's lives. Transportation has become one of the elements that determine the economic development. Transportation is no longer viewed as a sector which provided services only, but it has become a partner of general economic activities. Transportation industry in Indonesia has grown rapidly and this caused a business transportation competition in Indonesia nowadays more tight day by day. The emerging industry made human needs be increased and varied. With this situation, all of business especially transportation business should set a competitive strategy to compete with competitors. One of transportation in Indonesia which has a high interest for use by society for transportation is taxi. Lack of safety and comfortably public transportation make the demand for taxi services is quite high. In Indonesia, many company compete in taxi’s business. There are many company that compete in taxi’s industry. There are three taxi that familiar in society and already expand in Indonesia, these are Blue bird Taxi, Express Taxi, and Kosti Taxi. Figure 1.1 Number of Fleets In Padang Taxi’s company Number of Fleets Blue bird Taxi 150 Express Taxi 100 Kosti Taxi 100 Source : Direktorat BSTP, Ditjen Hubdat, 2014 Data above shows that Blue bird taxi, Express taxi, and Kosti taxi are company’s taxi that have a good market in Indonesia which those three company have branches in almost all capital city in Indonesia. Nowadays, taxi industry is very flare in Indonesia, especially in Padang. There are ten of taxi’s company in Padang: PT. Al Fiqie Taksi, Expess Taksi, Koperasi Taksi Angkasa, PT. Buana Permai Wisata Alam, PT. Inda Pelita Taksi, Kosti Taksi, Bluebird Group, Kosasi Taksi, PT. Ranah Minang Indah Taxi (Minang Taxi), Singgalang Indah Taksi (teamtouring.net, 2014). There is a tight competition between those ten company in Padang, especially since the arrival of these three company; Blue bird, Express, and Kosti as a newcomers in Padang they already made the user of public transport of taxi are increased. In Indonesia, those three company have many fleets. Those three company shown their competitive by adding their cars and create innovation to improve their service to the customers. All companies definitely want to survive to be a leader of market, as well as Blue bird Group, Express Taxi, and Kosti Taxi which requires unceasing effort to perform a series of actions to create a competitive advantage. Besides create a competitive advantage, the company should create a differentiation and one of differentiation is a brand. According to Kotler (2004), brand is a name, symbol, or any other feature that identifies one seller’s good or service as distinct from those of other seller. The better brand can give a quality guarantee to their customer. In this globalization era, war of product and quality is no longer anymore, but the brand war is happening now. The quality of products or services which have a standard that easy to imitate have a weak brand whereas attributes that difficult to imitate have a strong brand. Therefore, the customer will choose and buy a product or service that have added value among the other product or service. A brand is not only a name, symbol, sign, or any others, a brand is a promise by the company that describe a service to their customer. Actually, a brand have a tangible value and intangible value which represented by trademark that can create a value and affect the market (Durianto, et al., 2004). Therefore, only a product or services that have a strong brand equity that can compete, snatch, and control the market. If the company able to build a strong brand in the minds of consumers through a proper marketing strategy, the company will be able to build the brand. Thus the brand can add value to the value that offered by the product to the customers which is expressed as a brand that has brand equity. According to Aaker (1991) Brand equity is a set of brand assets and liabilities relating to a brand, names, and symbols, which increase or decrease the value given by a goods or services to company or customers. So, the importance of brand equity as the basis in determining step and market strategy from a product or service often make brand equity got a depth assessment. The stronger brand equity of the product or service, the stronger attractiveness from the customer to buy the product or services and the more profit that will get by the company. Therefore, the knowledge about element of brand equity is needed to make strong brand equity. Brand equity can be grouped into five elements; brand awareness, perceived quality, brand association, brand loyalty, and other proprietary brand assets (Aaker, 1991). Elements of brand equity will be use in this study consists of brand awareness, perceived quality, brand association, and brand loyalty, without including other proprietary brand assets because the purpose of this study is to see the concept of brand equity from the perspective of the consumer, while the other proprietary brand assets is a component of brand equity tend to be viewed from the perspective of the company. The brand awareness can be defined consumer's ability to identify or remember a brand in specific product category (Aaker, 1996). Reminder of the name, symbol and advertising slogan and brand attributes and brand recognition in this variable is measured. According to Keller view, brand awareness is a fundamental condition for creation of the brand image. When a brand is well established in the memory, relating association to brand and their right settling in memory, it is easier. Talking about brand awareness, those three taxi already have their brand in society’s mind. According to Durianto, et al (2004), there are four level of brand awareness. The four levels are brand unaware, brand recognition, brand recall, and the top level is top of mind. Those three taxis already made their brand to make the society aware that they are different from the other. Blue bird taxi made the brand awareness with their car which has blue color and the bird with blue color as their logo. Express taxi in Padang already changes their brand awareness with their car that different with the other cars that produced by Express company in another city by using MPV car (Ertiga Car by Suzuki) in Padang. Kosti taxi made their brand awareness by their black car that shows an elegant car. In brand awareness, the company trying to make a differentiation that make the customer easily to recognize their brand. Those three taxis intensively promote and build their brand to make their brand in Top of mind level. A brand association is “anything linked in memory to a brand” (Aaker, 1991, p. 109). Aaker (1991) argued that a brand association has a level of strength, and that the link to a brand (from the association) will be stronger when it is based on many experiences or exposures to communications, and when a network of other links supports it. Brand associations may reflect characteristics of the product. For example, the customers who using Kosti taxi felt luxurious because of that car. The customers who using Express taxi felt they will save their money if they use their service for many people or with many friends. They will feel that because the car of Express taxi have a big space and different with another taxi. Those three taxi have a good reputation on customer’s mind, so they will feel satisfy if they use those services. The third element of brand equity is perceived quality. Perceived quality is defined as the customer’s judgment about a product’s overall excellence or superiority in comparison to alternative's brand (Zeithaml, 1988). Basic functional characteristic of the product, perfection, sustainable performance, the economic life of the product, such as quality of services and their supporting elements are considered as determinants of perceived quality (Aaker, 1991). To improve the service to the customer, actually Blue bird taxi and Express taxi have application for free on smartphone, so the customer can access the taxi’s information and doing reservation by that application. Talking about quality of service, Blue bird made the customer perception about taxi which has safety and comfort, and they prove that by achieve Service Quality Award 2011. Express taxi and Kosti taxi put the low tariff system, so for the customer who have ‘price sensitivity’ will comfort about that tariff. Kosti Taxi in Padang using an unique system, in practice, almost all of driver of Kosti taxi welcoming their customer by using Minang Language. Blue bird taxi, Express taxi, and Kosti taxi showed their sustainable performance in Padang by showing their positive news about their performance and there is no negative thing or criminal problem that related about those three taxi. Overall, those three taxi company are doing on time performance especially their arrival to destination after the reservation by customer. The last elements is brand loyalty, defines as a situation which reflects how likely a customer will be to switch to another brand, especially when that brand makes a change, either in price or in product features (Aaker 1991, p. 39). Brand loyalty is a positive attitude towards the customer and customer commitment of a brand over the other brands (Dharmmesta , 1999). Additionally, Yoo and Donthu (2001) indicate that brand loyalty is the tendency to be a loyal to a local brand, which is demonstrated by the intention to buy as a primary choice. In brand loyalty, those of three taxi show how they sustain their customer to avoid the customers switching of the brand easily to the another competitor brand. Blue bird taxi and Kosti taxi already shown their effort to make a brand loyalty to customer in Padang is running well. This is shown that since Bluebird taxi starting to operate in Padang on May 2014, they already added 150 cars (kabar24.bisnis.com, 2015) and Kosti taxi also added 100 cars (Haluan newspaper, 2014). The fact above shows that they have a good feedback from citizen in Padang by increase their production. Brand loyalty could be shown by the feedback from customer by promote that taxi to the other people. The higher purchase intention of Padang’s society to choose public transportation especially taxi, made the customer should be thorough in choosing a brand or choosing brands of public transportation that fits to customer needs, because those of three taxi set a similar strategy to strengthening their brand equity. After seeing a great competition between Blue bird, Express Taxi, and Kosti Taxi as a public transportation in Padang, researcher interested to further research about the differences of brand equity of Blue bird, Express Taxi, and Kosti Taxi. Based on the description of the background that have been outlined above, researcher interested to see the difference of brand equity from three potential public transportation company (taxi) in Indonesia are Bluebird taxi, Express taxi, and Kosti taxi. So, researcher interested in conducting research with the heading “Analyzing Brand Equity of Public Transportation In Padang (Blue bird Taxi, Express Taxi, and Kosti Taxi)”

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