The Asian Journal of Technology Management Vol. 13 No.

1 (2020): 82-97

Effect of Customer Value and Experiential Marketing to Customer Loyalty

with Customer Satisfaction as Intervening Variable
(Case Study on Gojek Makassar Consumers)
Rahmat Riwayat Abadi*, Idayanti Nursyamsi, and Andi Reni Syamsuddin
Faculty of Economic and Business, Hasanuddin University, Indonesia

Abstract. The rapid growth in computer, technology, telecommunications, information and transportation has a big impact on companies
to deliver a value and experience for customers. Companies are competing to offer excellent service for consumers, because consumers will
satisfaction and encourage customers to be loyal. However, in reality there are deficiencies arising from online-based transportation systems.
Complaints also varied, ranging from the application system or the driver. The research aimed at examining and analyzing the effect of
customer value and experiential marketing on consumer’s loyalty with consumer’s satisfaction as intervening variable. The analysis units
were the users of Gojek transportation service in Makassar city. Sampling in this study uses a purposive sampling method to get samples
that fulfill the research criteria. The data were obtained using questionnaires. They were analyzed using Partial Least Square (PLS)
processed with Smart PLS 3.0 program. The results of the research indicate that customer value positive and significantly affects costumer’s
satisfaction and loyalty. Experiential marketing positive and significantly affects costumer’s satisfaction and loyalty. Costumer’s satisfaction
positive and significantly affects costumer’s loyalty. Customer value and experiential marketing positive and significantly affects costumer’s
loyalty through costumer’s satisfaction.

Keywords: Customer Loyalty, Customer Satisfaction, Customer Value, Experiential Marketing, and Transportation

1. Introduction services provided compared to the incurred

costs and efficiency was the most important
Indonesia is a country with the biggest factors in using online transportation and
populated and is accompanied by increasingly 58% of respondents answered using online
high and dynamic mobility due to the transportation for reasons of ease and
increasingly complex needs and various comfort when ordering directly from their
human activities in carrying out its work. smartphone (Ramadoni, 2017, September 4).
Friedman (2007) argues that the world today
is a space without limits. The flow of goods, Gojek currently has around 20 services which
services, and people can move easily due to can be solutions to daily challenges. Because
cheap transportation and information of this, Gojek has become one of the biggest
technology. Attend of online-based technology platforms which serves millions
application technology on smartphones has users even in Southeast Asia. Gojek began its
brought significant changes in lives. The journey in 2010 with its first service, namely
conveniences offered by online-based motorcycle ride-hailing through the call-
applications increasingly exist and groove on center. In 2015, Gojek developed rapidly after
public in big cities. This can be seen from launching an application with three services,
consumers who download application for namely: GoRide, GoSend, and GoMart. Since
online transportation. The reason for the then, it accelerated and continues to move in
soaring use of online transportation because becoming top technology apps serving
of the price and convenience. Based on millions of users in Southeast Asia (Gojek,
survey results from Crossmedia Link research, n.d.).
around 61% respondents stated that the
*Corresponding author. Email: [email protected]
Received: March 31th, 2020; Revised: April 27th, 2020; Accepted: April 29 th, 2020
Doi: http://dx.doi.org/10.12695/ajtm.2020.13.1.6
Print ISSN: 1978-6956; Online ISSN: 2089-791X.
Copyright@2020. Published by Unit Research and Knowledge
School of Business and Management-Institut Teknologi Bandung
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The progress of online transportation In addition, consumers want products that

especially Gojek does not go alone, now there can truly make them happy and fulfilling or by
are competitors who try to offer services their lifestyle, and give valuable experience. In
using different marketing techniques to reach situated increasingly fierce competition, the
the hearts of consumers, now present in service business must begin to look at the
Makassar, namely GRAB. Companies are application of experiential marketing, which
competing to offer excellent service for provides a unique, positive and memorable
consumers, because that way consumers will emotional experience to customers (Alma,
feel satisfaction and can encourage these 2007).
customers to be loyal. However, in reality
there are only deficiencies that arise on the Various studies show that consumers
online-based transportation system. tend to quiet when satisfied, but if they are
Complaints also vary, starting from the not satisfied, they will make a "scene".
application system itself, as well as from Customers who are unsatisfying will tell their
partners (drivers). bad experiences to 8-10 other people
(Tjiptono, 2008). In the end, consumers who
Of the two types of complaint, the shape is feel satisfied with their needs and desires will
very diverse. Various complaints experienced follow-up with a repeat purchase of the same
by consumers, including; the driver asks for brand. While consumers who experience
the customer's order to canceled, it is difficult dissatisfaction tend to change their buying
to get the driver, the driver cancels the order, behavior by moving to another brand
the map application error, the driver does not (Sudaryono, 2016).
come, the vehicle condition is not good, the
vehicle plate does not match the application, However, customers are not only loyal to a
the driver is reckless, and so on. This will company. It is necessary to create value for
certainly have a negative impact, both on customer to be loyal. Previous study has
consumers and companies. shown that factors such as providing greater
trust, offering social benefits, and providing
In the transportation industry that relies on special treatment can increase customer
services such as Gojek, it is very likely that loyalty (Lovelock, Wirtz, & Mussry, 2010).
consumers will move to other service
providers for certain reasons. This reason The purpose of this study is to get a better
needs to anticipated by the company to decide understanding of customer value and
the right strategy, because the key to the experiential marketing, then analyze the
company to continue to exist in the midst of impact on customer satisfaction and customer
this very competitive competition is loyalty. With understanding various forms of
to keep customers. Therefore, companies complaints or disappointments experienced
need to create value and experience when by consumers, it expected to used as a
customers use these products and services. reference for online-based transportation
In business, loving customers means gaining companies to manage customer value and
their loyalty by giving high value and touching experience to improve Gojek user
their feelings and souls. Consumers decision satisfaction.
to buy or become loyal customers to a brand
is strongly influenced by feelings (Kotler,
Kertajaya, & Setiawan, 2010). The customer is 2. Literature study / Hypotheses
the party who maximizes value, they form Development
expectations of value and act on it. Buyers will
buy from companies that offer the highest 2.1. Customer Value
value, which is defining as the discrepancy Satisfying needs and desires of consumers
between sum of customer value and customer is essence of marketing. The goal of every
costs (Hurriyati, 2005). business is to deliver customer value to

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Intervening Variable (Case Study on Gojek Makassar Consumers)

generate profits. In a highly competitive Experiential marketing is very useful for a

economy, with an increasing number of company if it wants to enhance its brand,
rational buyers faced with a myriad of choices, especially on a stage of decline. It is also
companies can only win by carrying out such useful to differentiate their products from
a process of delivering value and choosing, competing products, also creating an image
providing, and communicating superior value and identity for a company. Experiential
(Kotler & Keller, 2009). marketing is also useful to increase innovation
and persuade customers try to buy a product
Zeithaml (1988) stated that customer value (Maghnati, Ling, & Nasermoadeli, 2012).
can be understood as evaluation of the
benefits from the product or service felt by According to his views on experiential
the customer compared to what has marketing, Schmitt & Rogers (2008) in Zena
incurred by the customer to obtain the and Hadisumarto (2012), said: to figure
product or service. This means that the value marketing goals in terms of satisfaction
perceived by the customer is based on needs, delivery of solutions, problems, or
perceptions about what the customer receives benefits are still too narrow. The main
from a product and what the product gives. objective of marketing is to give valuable
experience for customers. After utilizing a
The customer estimates which bids will product or service, the customer will feel the
deliver the highest value and act on these satisfaction or dissatisfaction in
estimates. Whether or not an offer expected accompanying with expectations before using.
will affect customer satisfaction and the size The higher experiential marketing is felt, the
of the chance that the customer will use or higher customer satisfaction is felt (Lee,
buy again the product or service (Kotler & Hsiao, & Yang, 2011). According to Schmitt
Keller, 2009). Customer value is the (1999) in Alkilani, Ling, & Abzakh (2013),
company's ability in creating and adding value Experiential Modules (SEMs) describe five
to goods and services, particularly for the types of customer experience that are the
services that the company offer to customers basis of experiential marketing, the five types
or an aspects of the company business are; 1) Sense, 2) Feel, 3) Think, 4) Act, and 5)
services (Johnson & Weinstein, 2004 Relate.
in McFarlane, 2013). Basically, customer value
consists of 4 parts, namely: 1) service, 2) Several studies have also found positive effect
quality, 3) image, and 4) price. Several studies of experiential marketing on customer
have been conducted and found that there is satisfaction (Alkilani et al., 2013; Ekoputra,
a positive significant effect of customer value Hartoyo, Nurrochmat, 2017; Kusumawati,
towards customer satisfaction (Lam, Shankar, 2011; Pham & Huang, 2015). In addition,
Erramilli, & Murthy, 2004; Sugiati, Thoyib, experiential marketing can encourage
Hadiwidjoyo, & Setiawan, 2013; Vedadi, customer loyalty (Indrawati & Fatharani,
Kolobandi, & Khazaei, 2013). In addition, 2016; Wahyuningtyas, Achmad, & Zainul,
customer value is an essential aspect of 2017; Wu & Tseng, 2015).
marketing in shaping customer loyalty. Based
on earlier research, it was discovered that 2.3. Customer Satisfaction
customer value has a positive and significant Customer satisfaction depends on
influence on consumer loyalty (Lai, Griffin, & performance on the product on customer
Babin, 2009; Tu & Chih, 2013; Vedadi et al., perception and expectations. If the
2013). performance does not meet expectations, the
customer disappointed, otherwise the
2.2. Expereiential Marketing customer satisfied. Moreover, if its
Experience of consumers in consuming performance exceeds expectations, the
goods and services is closely related to the customer can be very satisfied (Kotler &
concept of experiential marketing. Armstrong, 2008).

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High satisfaction is an insurance policy for to know customers, we must keep up a good
something that is wrong, which will not avoid relationship with them. We must know
because of the diversity associated customers personally, one by one, so that we
with production of services. Long-term can have a complete picture of their needs,
customers in situations like this will be more desires, preferences, and behavior (Kotler et
forgiving because bad experiences that al., 2010).
sometimes occur will be offset by previous
positive experiences, and satisfied customers The rewards of loyalties are long-term and
will be less interested in competitors' offers. It cumulative. The longer the loyalty of a
is obvious that a company obsessed with customer, the greater the profit earned by the
customer satisfaction, given its direct company from customer. Research conducted
connection with customer loyalty, market by Rauyruen and Miller (2007) states that
share, and profits (Lovelock & Wright, 2007). loyalty can maintained by companies to
increase customer satisfaction and design a
There are many benefits for companies from good service system. A loyal attitude can
high levels of customer satisfaction. This can create and maintainance by focusing on
increase customer loyalty and prevent building relationships and creating customer
customer churns, reduce customer price trust, commitment, and a good service
sensitivity, reduce failed marketing costs and system.
create new customers, reduce operating costs
due to increased customer numbers, increase The variable customer loyalty in this study was
advertising effectiveness, and improve measuring by three indicators, (Zeithaml,
business reputation (Kim, Park, & Jeong, Berry, & Parasuraman, 1996), namely; 1)
2004). Telling positive things about products, 2)
Recommending someone to have consumed
Indicators of customer satisfaction indicators products to a friend (recommending products
in this study were measured using indicators to others), and 3) Repurchase intention to
by Azizah (2012) adjusted to the object of products that have been consumed (re-
research, namely: 1) feeling happy, showing purchase).
the extent to which customers feel happy
with experience of using services, 2) the right Researchers have before conducted studies
choice, measured from feelings that arise from and found that there are positive and
choosing the company as a partner, whether it significant effects of customer value on
is proper or not, and 3) conformity of customer loyalty through customer
expectations, as measured by feelings of satisfaction (Tu & Chih, 2013; Vedadi et al.,
customer satisfaction arising from the 2013). In addition, research on experiential
company's ability to meet all expectations. marketing on consumer loyalty through
customer satisfaction results in a positive and
Researchers have before conducted studies significant effect (Kusumawati, 2011;
and found that there is a positive effect Wahyuningtyas et al, 2017; Wu & Tseng,
between consumer satisfaction on consumer 2015).
loyalty (Munizu & Hamid, 2015; Tu & Chih,
2013; Wu & Tseng, 2015). The more satisfied The statement above supports the customer
the customer is, the more likely the customer value and experiential marketing variables
is to loyal too. used in this study, as well as their effects on
customer satisfaction and customer loyalty.
2.4. Customer Loyalty Therefore, seven hypotheses, as can be seen in
All marketers dreams is to create a strong and Figure 1, were developed:
close bond with their customers and quite
often it is the key to a long-term marketing H1: Customer value has a positive and
success (Kotler & Keller, 2009). Once we get significant effect on customer

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Abadi, Nursyamsi, and Syamsuddin / Effect of Customer Value and Experiential Marketing to Customer Loyalty with Customer Satisfaction as
Intervening Variable (Case Study on Gojek Makassar Consumers)

satisfaction. H5: Customer satisfaction has a positive and

H2: Experiential has a positive and significant effect on customer loyalty.
significant effect on customer H6: Customer value has a positive and
satisfaction. significant effect on customer loyalty
H3: Customer value has a positive and through customer satisfaction.
significant effect on customer loyalty. H7: Experiential marketing has a positive
H4: Experiential marketing has a positive and significant effect on customer
and significant effect on customer loyalty through customer satisfaction.
loyalty.

Figure 1.
Conceptual Framework
Sampling in this study used a purposive
sampling technique or method. The reason
for sampling is the purposive sampling
3. Methodology
method because it will choose samples that
meet the research criteria so that they
This research was conduct on consumers
can give answers that can support the course
using a questionnaire to application users who
of this research. Sample research criteria
have used Gojek online transportation in
are Gojek application users in the Makassar
Makassar city. Primary data collection done
city. Sample size as in other statistical methods
directly in field by conducting interviews and
produces a basis for estimating sampling
distributing questionnaires to informants
errors. To test all hypotheses in this study
about the online transportation application
using the Partial Least Square (PLS) method,
Gojek in Makassar city.
the recommended minimum sample size
ranges from 30 to 100 or > 200 sample sizes
The questionnaire consists of four segments,
(Ghozali, 2006). Thus, researchers set the
namely customer value, experiential
sample in this study is 100 respondents.
marketing, customer satisfaction, and
Therefore, to test the hypothesis, this study
customer loyalty. Variables in the
uses Structural Equation Modeling (SEM)
questionnaire were designed based on
with a variant based called Partial Least Square
previous studies and preliminary research
(PLS) and SmartPLS version 3.0 as an analysis
through interviews. The questionnaire
tool. Result of using PLS-SEM is that
measured using a 5 scale Likert (1 = strongly
testing carried out without a strong theoretical
disagree to 5 = strongly agree).
basis, ignoring some assumptions (non-

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parametric) and the accuracy parameters of loyalty.Based on Table 1, majority

the predicted models of coefficient of respondents were female (57%), aged 21-
determination (Ghozali & Latan, 2015). 30 years (55%), senior high school (58%), with
There, the use of Partial Least Square in this job titled as a student (75%). Most of the
study is to predict the relationship between respondents obtained sources of information
customer value and experiential marketing on from related subjects from social media
customer satisfaction and customer (78%).

Table 1.
Responden’s Profile (N=100)

Variables Frequency Percent

Gender
Male 43 43%
Female 57 57%
Age (years)
< 20 54 54%
21-30 41 41%
31-40 2 2%
41-50 2 2%
> 50 1 1%
Education
Elementary School 0 0%
Junior High School 17 17%
Senior High School 58 58%
Graduated 21 21%
Magister 4 4%
Other 0 0%
Job Titled
Student 75 75%
Government Employees 9 9%
Employees of State-Owned Enterprises 3 3%
General Employees 6 6%
Entrepreneur 5 5%
Other 2 2%
Source Information
Media 13 13%
Social Media 78 78%
Friends 9 9%
Other 0 0%

The variable measurement instrument 4. Finding and Discussion

consists of four construct of laten variables
which operationalized into several question 4.1 Instrumen Validity and Reliability Results
items. To measure each construct in this This research instrument was derived from
research, model a measuring instrument was earlier research (Alkilani et al., 2013; Ekoputra
developed, which referred to each indicator in et al., 2017; Indrawati & Fatharani, 2016; Lai
each existing construct. The complete of the et al, 2009; Pham & Huang, 2015; Sugiati et
variables and indicators can be seen in al., 2013; Tu & Chih., 2013; Wu & Tseng,
Appendix 1. 2015; Zeithaml et al., 1996). The customer

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Abadi, Nursyamsi, and Syamsuddin / Effect of Customer Value and Experiential Marketing to Customer Loyalty with Customer Satisfaction as
Intervening Variable (Case Study on Gojek Makassar Consumers)

value variable is derived from several studies This study presents good results from AVE
(Indrawati & Fatharani, 2016; Lai et al., 2009; ranging from 0.569 to 0.736. However, there
Lam et al, 2004; Sugiati et al., 2013). is a loading factor below 0.7 for the
Meanwhile, experiential marketing variables experiential marketing variable on EMF2 and
are derived from several studies of service EMA2 indicators. For this reason, if there is a
marketing (Alkilani et al., 2013; Ekoputra et loading factor < 0.7, it must be removed
al., 2017; Indrawati & Fatharani, 2016; (dropped) from the model. Thus, the loading
Kusumawati, 2011; Pham & Huang, 2015). factor after the modified model has gained a
Then, customer loyalty comes from customer high value, this means that all instruments
satisfaction in research (Azizah., 2012; have represented variables in this study (Hair,
Munizu and Hamid, 2015; Wu and Tseng, Black, Babin, & Anderson, 2010). The study
2015). Before testing hypotheses (inner also concluded that all Composite Reliability
model), SmartPLS requires tests of validity (CR) exceeds 0.7, this means that the indicator
and reliability (outer models) for instruments can be used for further analysis. Furthermore,
such as convergent validity and discriminant discriminant validity related to the principle
validity (Ghozali & Latan, 2015). The first that different construct manifest shouldn’t
step in this analysis is to assessing convergent highly correlated. How to test discriminant
validity, composite reliability, validity looking at the value of cross loading
and discriminant validity (Ghozali & Latan, for each variable have > 0.70
2015). Convergent validity test can be seen (Ghozali & Latan, 2015).
from the loading factor which must be > 0.7
(Ghozali & Latan, 2015). Then, Ghozali and The results of the discriminant validity (Table
Latan (2015) argues that convergent validity 2) conclude there are no multicollinearity
and reliability is assessed through Internal indicators of other variables. Thus, this study
Composite Relability (ICR) which must be has adequate validity and reliability results and
greater than 0.7; and Average Variance used for inner model analysis or structural
Extracted (AVE > 0.5). The complete of the models or further testing hypotheses (Chin,
Convergent Validity and Reliability Test can 2010).
be seen in Appendix 2.

Table 2.
Discriminant Validity

Indicator Customer Experiential Customer Customer Loyalty

Value Marketing Satisfaction
CVS1 0.741 0.613 0.597 0.599
CVS2 0.794 0.688 0.620 0.657
CVQ1 0.748 0.740 0.561 0.677
CVQ2 0.817 0.733 0.663 0.747
CVI1 0.770 0.607 0.517 0.630
CVI2 0.770 0.665 0.555 0.612
CVP1 0.821 0.711 0.605 0.653
CVP2 0.742 0.521 0.559 0.576
CVP3 0.747 0.595 0.651 0.676
EMS1 0.624 0.824 0.623 0.695
EMS2 0782 0.803 0.622 0.762
EMF1 0.739 0.744 0.617 0.634
EMT1 0.735 0861 0.656 0.722
EMT2 0.762 0.870 0.647 0.735
EMA1 0.739 0.817 0.702 0.716
EMR1 0.572 0.817 0.613 0.595
EMR2 0.602 0.826 0.644 0.605
CSH1 0.755 0.772 0.880 0.757
CSR1 0.577 0.573 0.823 0.604

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CSC1 0.685 0.663 0.881 0.725

CSC2 0.606 0.653 0.847 0.666
CLT1 0.791 0.798 0.737 0.839
CLT2 0.731 0.783 0.761 0.886
CLF1 0.695 0.627 0.601 0.853
CLF2 0.593 0.549 0.624 0.782
CLR1 0.736 0.741 0.674 0.872
Source: Processing data with Smart PLS 3.0, 2020

4.2 Model Feasibility Test Results (Inner Model) Figure 2 and Appendix 3 present the Path
In assessing structural models with PLS, we Coefficient, T-statistics and P-values in terms
begin by looking at R-Squares for each of structural model results in this study. There
endogenous latent variable as the predictive are seven hypotheses supported in this study.
power of the structural model. Changes in the According to Hair et al. (2010), when the T-
value of R-Squares can be used to explain the statistic is greater than 1.96, it means it
effect of certain exogenous latent variables on reaches significance of 5% of the P-value.
whether endogenous latent variables have Because the results by SmartPls Ver. 3.0, the
substantive effects. R-Squares value of 0.75, researcher concludes hypothesis testing.
0.50, and 0.25 can be concluded that the Among the factors of customer value, such as
model is strong, moderate, and weak. The fast access, comfortable and good vehicles,
results of PLS R-Squares present the amount favorite choices, more affordable prices,
of variance from the construct described by getting attractive promos are factors
the model (Ghozali & Latan, 2015). that believe to affect customer satisfaction and
customer loyalty. Meanwhile, experiential
This study presents R-Squares such as 65.1% marketing factors, such as attractive
for customer satisfaction and 79.2% for application design, application running well,
customer loyalty. This means, the customer polite drivers, good driving, diverse menus,
value and experiential marketing variables ease of transactions, attractive rewards are
affect the customer satisfaction variable which factors that believe to affect customer
has an R2 of 0.651 or 65.1% and the remaining satisfaction and customer loyalty. This means,
34.9% is influenced by other variables not the Path Coefficient results from customer
included in this model. As for the customer value and experiential marketing variables as
value and experiential marketing variables well as their effect on customer satisfaction
affecting the customer loyalty variable has and customer loyalty where the resulting T-
an R2 of 0.792 or 79.2% and the remaining statistics values > 1.96, (H1 = 3,063; H2 =
21.8% is influenced by other variables not 3,620; H3 = 2,821; H4 = 2,594; H5 =
included in this model. Moreover, customer 2,594; H5 = 3,320; H6 = 2,086; and H7 =
loyalty explained 67.7% by customer 2,536), supported.
satisfaction. Furthermore, the model
evaluation is fixed looking at the significance Thus, this study presents customer value and
value to find the effect between variables experiential marketing as the main predictors
through the bootstrapping procedure of positive and significant influence on
(Ghozali & Latan, 2015). customer satisfaction and customer loyalty in
Gojek online transportation provider
companies. The complete of the Results of
Structural Model can be seen in Appendix 3.

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Intervening Variable (Case Study on Gojek Makassar Consumers)

Figure 2.
Path Coefficient and Loading Factors

4.3 Discussions favorite choices, more affordable prices,

This studies to analyze the effect of customer attractive promos, will be concidering by
value and experiential marketing on Gojek consumers before using Gojek online
online transportation towards customer transportation service. Passengers tend to feel
satisfaction and customer loyalty. In addition, satisfied and satisfied during or after the trip
two-way approaches such as evaluation of because the application design is attractive, the
measurement models or outer models, then application is running well, polite drivers,
evaluation of structural models or inner driving drivers well, diverse menus, ease of
models are supporting by Partial Least Square. transactions, attractive rewards.
Through PLS, customer value and experiential
marketing have proven to have a positive and This study also proves that customer value
significant effect on customer satisfaction and experiential marketing have a positive and
on Gojek online transportation in Makassar significant effect on consumer loyalty
(supporting H1 and H3). in Gojek online transportation providers in
Makassar (supporting H2 and H4). These
This positive relationship based on earlier results show about 70% customer value and
studies of customer value and experiential experiential marketing explain the variable
marketing on customer satisfaction (Alkilani customer loyalty. This supports the results of
et al., 2013; Ekoputra et al., 2017; Indrawati & earlier studies of customer value and
fatharani, 2016; Lai et al., 2009; Pham & experiential marketing on consumer loyalty
Huang, 2015; Sugiati et al., 2013; Tu & Chih, (Kusumawati, 2011; Lai et al., 2009; Vedadi et
2013; Wu & Tseng, 2015). In other words, fast al., 2013; Wahyuningtyas et al., 2017; Wu &
access, comfortable and good vehicles, Tseng, 2015). So, when the customer value

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(fast access, comfortable and good vehicles, found that customer value and experiential
favorite choices, more affordable prices, get marketing significantly affect consumer
attractive promos) and experiential marketing satisfaction and customer loyalty using Gojek
(attractive application design, good transportation service.
application, polite drivers, good driving
drivers, menus variety, ease of transactions, An important and interesting finding from
attractive rewards) are conducive, than this research is empirical evidence that shows
customers will be satisfying and tend to loyal that customer value influences customer
to Gojek online transportation in Makassar. satisfaction which in turn creates customer
loyalty. In addition, customer value affects
In addition, this study also concluded that customer loyalty which mediated by customer
customer satisfaction has a positive and satisfaction. It was concluded that customer
significant effect on customer loyalty. Other value makes an important contribution to
findings in this study also concluded that the increasing customer loyalty. This implies that
results of customer value path analysis have a customer value is important to consider to
positive and significant effect on customer deliver high value for a thorough evaluation by
loyalty through customer satisfaction and the consumers of uses based on perceptions
results of experiential marketing path analysis about whats received and what is given to
have a positive and significant effect on create and keep up customer loyalty.
customer loyalty through customer
satisfaction (supporting H5, H6, and H7). In This research confirms customer value refers
this perspective, factors or indicators of to ability of companies to create and add value
customer value and experiential marketing are to goods and services, especially for the
antecedents of customer satisfaction in services they offer to customers or aspects of
shaping customer loyalty in the transportation their business services (Johnson & Weinstein,
company Gojek. This means consumers are 2004 in McFarlane, 2013). Based on this,
satisfying because they get fast access, it concluded that customer value has an
comfortable and good vehicles, favorite important role in creating customer loyalty.
choices, more affordable prices, and attractive Therefore, in business competition, the
promos. customer value offered needs to implemented
as an effort to keep up by creating customer
In addition, consumers also get attractive satisfaction and customer loyalty.
application designs, applications run well,
polite drivers, good driving drivers, diverse In addition, this study also found that
menus, ease of transactions, attractive experiential marketing influences customer
rewards. This finding is closely related to satisfaction and customer loyalty. This study
earlier studies (Kusumawati, 2011; Tu & helps Gojek to gain further understanding of
Chih., 2013; Vedadi, et al., 2013; the effects of experiential marketing (sense,
Wahyuningtyas, et al., 2017; Wu and Tseng, feel, think, act, and relate) on customer
2015) about high customer satisfaction to satisfaction and customer loyalty. Experiential
build long-term relationships and mutual marketing also influences customer loyalty,
benefit with consumers and create loyalty as a through customer satisfaction. Increased
competitive advantage in the market. experiential marketing related to customer
satisfaction so that if there is an increase in
experience received by consumers, it will have
5. Conclusion & Recommendations an impact on customer loyalty. By
understanding the antecedents of customer
5.1 Theoritical Implication satisfaction and customer loyalty, this research
In theory, this research expected to strengthen allows companies to use experiential
the theory and research results that are marketing effectively in dealing with
relevant to the results of this study, which complaints or disappointments experienced

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Intervening Variable (Case Study on Gojek Makassar Consumers)

by consumers so that it will have an impact on indicators to better explain customer loyalty
low churn (customer movement) to other variable itself.
brands or competitors.
Acknowledgement
5.2 Practical Imlpication I would like to thank reviewers for their useful
Gojek transportation service providers in criticism and suggestions. Funding for this project
Makassar city should keep up the existing comes from Master's Thesis Research by the Ministry
customer value and experiential marketing of Research and Technology, Indonesia.
and need to improve the latest features of the
application, make innovations, offer more
attractive promotion to customers, and References
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APPENDIX

Appendix 1.
Variables and Indicators

Variables Indicators Source

Customer Value Johnson &
Weinstein
Service CVS 1: I get fast access to Gojek drivers (2004)
CVS 2: Vehicle license plate that I ordered is in McFarlane
accordance on the Gojek application (2013)
Quality CVQ 1: I feel comfortable with the vehicle
CVQ 2: Condition of vehicle is good
Image CVI 1: Gojek application is an online transportation
that used by many people
CVI 2: Gojek application is a favorite choice
Price CVP 1: The price is cheaper than competitors
CVP 2: Prices are suitable with customer capabilities
CVP 3: I got an interesting promo
Experiential Schmitt (1999)
Marketing in Alkilani et
Sense EMS 1: Design of Gojek application is interesting al., (2013)
EMS 2: Gojek application/map operates properly
Feel EMF 1: Gojek drivers are polite while driving
EMF 2: Gojek drivers drive well
Think EMT 1: Gojek presents various menus on the
application
EMT 2: Gojek is able to offer convenience in
transactions
Act EMA 1: Good interactions with Gojek drivers
EMA 2: I feel that using the GO-JEK application
describe my lifestyle
Relate EMR 1: I get an attractive reward after using Gojek
application
EMR 2: I can easily contact Gojek customer service if
something happens
Customer Azizah (2012)
Satisfaction
Happines CSH 1: I feel happy after using Gojek services
Right Choice CSR 1: Gojek is the right choice
Conformity of CSC 1: Overall, I feel satisfied using Gojek services
Expectations CSC 2: I get a satisfying experience after using Gojek
services

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Abadi, Nursyamsi, and Syamsuddin / Effect of Customer Value and Experiential Marketing to Customer Loyalty with Customer Satisfaction as
Intervening Variable (Case Study on Gojek Makassar Consumers)

Variables Indicators Source

Customer Zeithaml et al.,
Loyalty (1996)
Telling positive CLT 1: I will give positive comments about Gojek
things about the CLT 2: I will tell about the benefits of Gojek services
product consumed
Recommended to CLF 1: I will invite friends to use Gojek services
someone for CLF 2: I will communicate a good information about
product has been Gojek
consumed to a
friend
Repurchase CLR 1: I will reuse Gojek services
intention to the
product that has
been consumed

Appendix 2.
The Convergent Validity and Reliability Test

Research Model
Indicator Research Model AVE CR
After Modifying
Customer Value (CV)
CVS1 0.741 0.741 0.596 0.930
CVS2 0.794 0.794
CVQ1 0.740 0.740
CVQ2 0.817 0.817
CVI1 0.770 0.770
CVI2 0.770 0.770
CVP1 0.821 0.821
CVP2 0.742 0.742
CVP3 0.747 0.747
Experiential Marketing (EM)
EMS1 0.798 0.824 0.674 0.943
EMS2 0.804 0.861
EMF1 0,760 0.817
EMF2 0.642
EMT1 0.839 0.861
EMT2 0.867 0.870
EMA1 0.829 0.817
EMA2 0.642
EMR1 0.790 0.744
EMR2 0.796 0.826
Customer Satisfaction (KP)
CSH1 0.880 0.880 0.736 0.918
CSR1 0.823 0.823
CSC1 0.881 0.881
CSC2 0.847 0.847

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Research Model
Indicator Research Model AVE CR
After Modifying
Customer Loyalty (LP)
CLT1 0.872 0.872 0.718 0.927
CLT2 0.839 0.839
CLF1 0.853 0.853
CLF2 0.783 0.783
CLR1 0.886 0.886

Appendix 3.
The Results of Structural Model

Path T- P-
Hypotheses Result
Coefficient statistics value
H1 Customer value has a positive and significant 0.382 3.062 0.002 Supported
effect on customer satisfaction
H2 Experiential has a positive and significant 0.457 3.620 0.000 Supported
effect on customer satisfaction
H3 Customer value has a positive and significant 0.363 2.821 0.005 Supported
effect on customer loyalty
H4 Experiential marketing has a positive and 0.295 2.594 0.010 Supported
significant effect on customer loyalty
H5 Customer satisfaction has a positive and 0.296 3.320 0.001 Supported
significant effect on customer loyalty
H6 Customer value has a positive and significant 0.113 2.086 0.037 Supported
effect on customer loyalty through customer
satisfaction
H7 Experiential marketing has a positive and 0.135 2.536 0.012 Supported
significant effect on customer loyalty through
customer satisfaction

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