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THE INFLUENCE OF EVENT SERVICE QUALITY, EVENT CONVENIENCE, AND EVENT COST TOWARD EVENT VENUE SATISFACTION AT JAKARTA CONVENTION CENTRE

How to cite this article;

Wahyuningtias, Dianka., Zulkarnain, Arif., Nurbaeti., & Asmaniati, Fetty. (2017). The Influence Of Event Service Quality, Event Convenience, And Event Cost Toward Event Venue Satisfaction At Jakarta Convention Centre. The proceeding of International Conference on Management, Accounting, Business and Entrepreneurship (ICMABE). October 15-18th, 2017, Jakarta. Indonesia

 

 

THE INFLUENCE OF EVENT SERVICE QUALITY, EVENT CONVENIENCE, AND EVENT COST TOWARD EVENT VENUE SATISFACTION AT JAKARTA CONVENTION CENTRE

Dianka Wahyuningtias1, Arif Zulkarnain2, Nurbaeti3 and Fetty Asmaniati 4

12Hotel Management, Faculty of Economics and Communication,

Bina Nusantara University

34Hotel Management, Sekolah Tinggi Pariwisata Trisakti

dwahyuningtias@binus.edu , arief.zulkarnain@binus.edu,

  

ABSTRACT

The purpose of this research was conducted to show how its sub-dimensions of event service quality, cost, and convenience driver event satisfaction among visitors who are attending event at Jakarta Convention Center. Research design applies a survey to interview the customers for testing the hypothesis. Meanwhile the required data consist of four variables are event service quality, event cost and event convenience as dependent variable and event venue satisfaction as independent variable. The total respondents are 177 customer who had visited Jakarta Convention Center, who already have experiences of visiting various events that are held. Data analysis used was consist of multiple regression analysis method with SPSS program. The result conclude that visitor who are attending events consider the service quality, cost, and convenience as an important aspect for accommodate their high expectation before visit the event venue. The management should pay attention to the space of the room, ambience and signs that provide information. Therefore, the management has a deep understanding of the customers to achieve event venue satisfaction by anticipate the various expectations of each event held.

 Keywords:  Service quality, convenience, cost, event, satisfaction.

 

 

INTRODUCTION

In a very tight competition with the Convention business in Jakarta, customer demand for a professional event is a must. The event industry is a standout among the most powerful and quickest developing in service industry, which is shapes a noteworthy some portion of the events business sector. Hence, rivalry for the gathering business expands everyday as the requests of client growth. Expanded rivalry and the sky is the limit from there requesting clients imply that cautious thought must be taken for the offices and services delivery during events (Uzunboylu, 2016). The progress of event industry seems to be a proof of Indonesia’s economic growth. As an economic growth, political stability and security are improving, many local and foreign investors are interested in investing in the country-either as organizers or participants. Even industry is believed as an industry that gives a major number of opening for work and contributes in a real positive monetary effect (Hussein, 2016). The event is a complex process that requires various planning and preparation for a mature preparation; vacation planning, business or activities undertaken by the public to attract tourists and to forecast future demand, promote event venues, images and to maximize revenue for parties involved in organizing such events. Different investigations have discovered that events have an assortment of potential impacts, including financial, social, social, political, physical, and ecological ones. These effects can be sure, negative, or positively affect one measurement (e.g. financial) while negatively affecting another (e.g. social or social) (Yuruk, Akyol, & Simsek, 2017). Framework supporting occasions these incorporate “hard standard” intending to set up substantial, quantifiable and auditable angles, for example, those identified with the computation of costs, physical offices, and for utilization items, for example, sustenance and drinks of decision and quality principles. Likewise “soft standard foundation” incorporates impalpable, standard working techniques that are frequently connected with benefit quality, including reliability, responsiveness, empathy and assurance. In events operation, satisfied guests are more likely to spread positive verbal information, and to be repeat customers (Brown & Smith, 2016)

Convention center must apply strategically to create a suitable and better notoriety that demonstrates their capacity than have fruitful occasions. In this research, the significance of service quality to the event industry is displayed as a measure of how well the level of service delivered and level conveyed matches the member’s desires and the connections between event service quality and event satisfaction. This research aims to; (1) to analyze the effect of service event quality on event venue satisfaction, (2) to analyze the influence of event cost on event venue satisfaction, (3) to analyze event convenience impact to event venue satisfaction.

 

LITERATURE REVIEW

Events are temporary moment that have a limited timeframe and the planned activities are usually fixed and published. Event is temporary and every event is a unique blend of duration, setting, management, and people. An event is an ordeal that is painstakingly created to convey an effect on the individual in participation. Events unite individuals to share an affair and deliver a quantifiable result. They speak to a method for offering the city “as an item” by pulling in visitors, ventures, and speculations and give the chance to unite individuals inside a social domain to praise their and others’ accomplishments (Yürük, Akyol, & Simsek, 2017). Special event definitions are special rituals, performances, performances, or celebrations that are planned and made to mark special occasions or to achieve social, cultural or objective goals together. The event can be distinguished into a public event and private event. Included in the public event are celebrations, cultures, arts, business, sports competitions, education and science, receptions, political fibers or state. While private events include Personal celebrations such as anniversaries, family vacations, weddings, and birthday parties, as well as social events such as parties, gala dinner and reunion events. While the event in the field of political economy and tourism is as a tourist attraction, image maker, political tool, and as a tool to raise funds. Event value equity is a situation where the event gives good value and provides benefits to the community Value equity is a very important business concept for companies and industries in identifying and differentiating their products and services in order to maintain and maximize profits.

 

Event service quality

Numerous scholarly (Parasuraman, Valarie, Zeithaml and Berry) literary works and books address assortment of definitions and ideas about administration quality and theorize an examination of buyer desires with execution (Uzunboylu, 2016). Service quality as “perceptions resulting from a comparison of consumer expectations with actual service performance”.  In addition, service quality is a tool for how well the customer expectations are matched by the delivered service level and it is known that if the customer expectations are higher than the perceived performance, then it could affect the customer satisfaction negatively (Uzunboylu, 2016). Service quality is a tool for measuring service quality and can be used to analyze the causes of service problems. Servqual is built on the comparison of two major factors, namely customer perceptions of perceived service with actual service expected / expected service. If reality is the same as expectations then the service can be satisfactory. If the reality is more than expected, then the service is said to be qualified, whereas if the reality is less than expected, then the service is said to be inferior. Service quality has been broadly recognized as an essential issue in numerous enterprises as it enables an organization to improve its benefits and furthermore fulfill and hold clients. By giving phenomenal service quality, a business can make an upper hand to recognize it from different associations. Subsequently, look into on the estimation of and change of service quality, has turned out to be basic. In any case, in spite of general affirmation of administration quality’s significance, scholastics presently can’t seem to concede to how it ought to be measured regarding instruments, measurements and techniques (Hapsari, Clemes, & Dean, 2016).

 

Event Convenience

Customer convenience reflects the stages of consumer activity related to the purchase or understanding of a service. Event Convenience can be measured with sufficient access in and out at the venue, making it easier for visitors to get in and out of the venue. Theoretically, service convenience expects to limit the sacrifice or mental anxiety identified with the buy or usage of a service, which could be of various sorts. Service convenience in event: (a) the comfort of choice, identified with the underlying choice to expend an administration, the accessibility, and nature of the data concerning the loan specialist of administration; (b) the comfort of access, which address time and essential push to start the offering of administrations; (c) convenience ensnared when and exertion important to encounter what is offered by services; (d) the comfort of exchanges identified with the time and exertion while leading the exchange; and (e) the comfort after the time and fundamental push to reengage contact with an association. It showed mental sacrifices could have an influence right now of choosing administrations, when holding up, or when looking to comprehend the administrations advertised. Thus, non-financial sacrifices may incorporate time it takes to go to the office from the place of business or from the customer’s home, the openness, open transportation administrations, access of private stopping, or the significance or requirement for physical action. A large number of the general population who forsake this sort of action demonstrate absence of time as a standard intention. Consequently, not just the cost or saw quality could reduce an incentive from the customer’s view of an item or administration, however different parts also (Fernandez, et al., 2017).

 

Event Cost

Event cost is understood as a form of commitment and money which is used for the preparation of an event. (1) Tangible benefits, (2) tangible costs consisting of costs and capital for site construction, labor costs, infrastructure and maintenance costs. Event research has put more accentuation on specific attributes than on view of cost/value and service quality.  Cost/value comprises of cost of affirmation and things sold at the event and impression of significant worth. Festival value at the handcrafts celebration was defined as incentive for time, cash, and effort. Functional esteem comprised of evaluations that the event was moderate, sparing, quality surpassed cost, and offered better quality and benefits. Ticket cost was a solitary thing cost measure (Tanford & Jung, 2017).

 

Event Venue Satisfaction

Satisfaction is a subjective assessment settled on as a post-decision subjective judgment or an enthusiastic reaction to a demonstration of utilization. Assessments might be founded on view of value or on earlier desires and the relative influence of determinants may shift by individual and circumstance (Brown, Smith, & Assaker, 2016). Event venue satisfaction is the client’s reaction to the assessment of the contrast between what the guest expected with the genuine execution view of an event subsequent to going to it. Satisfaction is the consequence of a client’s impression of the esteem got. The idea of saw esteem is associated with customer fulfillment, the nexus amongst esteem and fulfillment is straightforwardly because of the common equity between the two ideas, as both flow from evaluative judgements. While it is conceivable that fulfillment is a precursor and additionally an outcome of saw esteem, specialists have offered more help for saw esteem decidedly and straightforwardly affecting customer fulfillment (Fernandez, et al., 2017). Consumer satisfaction is a consumer feeling that can be based from the experience of feeling a service provided by the company. Event venue satisfaction can be measured through perceptions of visitors who are happy with the venue, events, quality of events, and satisfaction with the value of the event, and satisfied with the overall experience of the event. Consumer expectations are influenced by the experience of brand use of goods or services that are different from others. Confirmation occurs when expectations match the actual performance of the product and the consumer will feel satisfied. Conversely disconfirmation occurs when expectations are higher or lower than actual product performance.

 

METHODOLOGY

The research design uses hypothesis testing, namely research that aims to test the hypothesis is generally explained characteristics of certain relationships or differences between groups or the independence of two or more factors in a situation. There are 5 (five) variables to be studied. Measurement scale used in this study is the interval Likert scale measurement method. Likert Scale is a method that measures attitude with states agree or disapproval against a particular subject, object or event. The Likert-five-point scale with scale interval arrangement in which the order of scale 1 up to scale 5. Data collection in this study conducted through the distribution of questionnaires to 117 respondents, who are customers Jakarta Convention Center. Sampling with purposive sampling technique, that is technique sampling based on criteria certain. Respondents’ characteristics such as type respondent’s gender, age, department spending per month.  It can be explained that for respondents are male as many as 95 people out of a total of 117 respondents or of 81.2% of the total respondents. And for respondent of gender respondent’s women have respondents as many as 22 people from a total of 117 respondents or 18.8% of the total all respondents.

Based on the demographic analysis, for the age level, the respondents were aged 21-30 years as many as 45 people out of the total 117 respondents or 38.5% of the total all respondents. For aged respondents 31-40 years as many as 52 people out of a total of 117 respondents or equal to 44.4% of the total respondents. For respondents aged 41-50 year as many as 20 people out of a total of 117 respondents or 17.1% of the total respondents.

For the education level, the respondents educated Diploma, counted 22 people from a total of 117 respondents or 18.8% of the total all respondents. For those respondents S1 educated as many as 76 people from a total of 117 of respondents or equal to 65% of the total respondents. For educated respondents master degree and doctorates was 19 people from total 117 respondents or 16.2% of the total respondents.

For the job level, the respondent work as a clerk as many as 100 people from a total of 117 respondents or 85.5% of the total all respondents. For respondents who work as a self-employed 9 people out of a total of 117 respondents or equal to 7.7% of the total respondents. For respondents who work as teachers as much as 1 person out of a total of 117 respondents or 0.9% of the total respondents. For respondents who work as others as many as 7 people out of a total of 117 respondents or amounting to 6% of the total respondents.

For income level, respondents who earns IDR 1 million – 2.5 million as much 7 people out of a total of 117 respondents or by 6% of the total respondents. For respondents which earns IDR 2.5 million – 5 million as many as 69 people out of a total of 117 respondents or amounting to 59% of the total respondents. For of respondents who spent IDR 5 million – 8 million as many as 39 people out of a total of 117 respondents or amounting to 33.3% of the total respondents. For respondents who spent > IDR 8 million as many as 2 people out of a total of 117 respondents or amounting to 1.7% of the total respondents. It can be seen that each indicator of each variable is expressed valid and reliable. This can be seen from the value indicator of each construct has value loading factor> 0.40, shows all indicators can explain existing constructs. The value of cronbach’s alpha for each variable> 0.60, shows the measuring instrument used reliable or in other words the respondent’s answer tend to be the same even though given in different (consistent) statement form.

Data analysis methods used in this research is structural equation model (SEM) with the use of AMOS program 6.  Before analyzing the hypothesis, suitability of the overall model (overall fit models) should be assessed first for guarantee that the model can describes all causal influences.

 

Table 1. Goodness of Fit

Goodness of Fit The recommended Acceptance Limit

 

Value Decision 
Chi Square Minimum Chi Square X2 table df=8=20.93502 15.272 Acceptable Fit
p-value Minimum 0.05 or upper 0.05 0.054 Acceptable Fit
GFI >0.9 or closer 1 0.964 Acceptable Fit
RMSEA <0.08 0.089 Unacceptable Fit
AGFI >0.9 closer 1 0.876 Marginal Fit
NFI >0.9 closer 1 0.686 Unacceptable Fit
TLI >0.9 closer 1 0.821 Marginal Fit
CFI >0.9 closer 1 0.932 Acceptable Fit
Normed Chi Square Minimum Limit 1, maximum limit 2.3 or 5 1.909 Acceptable Fit

 

Based on table 1, it can be seen on absolute size according to the main requirement of chi square not fulfilled, this can be seen from the value of chi squares 20.93052 with p-value 0.056 (above 0.05) so that it can be inferred this model is good fit. Alternative testing goodness of fit other criteria other absolute fit size by looking at the value GFI of 0.964 (> 0.9 or close to one) and RMSEA of 0.089 (greater than 0.08). Criteria are based on incremental fit size can be seen from AGFI value of 0.874 (marginal, still approaching one), NFI of 0.881 marginal, still close to one), TLI of 0.821 (marginal, still close to one), CFI of 0.932 (> 0.9 or close to one). Criteria based on Parsimonious Fit Measure by looking at normed chi square values equal to 1.909 (qualify the lower limit 1 and upper limit 5). So as a whole can concluded that this model is still stated worth marginally to be used as tool in confirming that theory has built on existing observational data or it can be said this model goodness of fit.

 

FINDINGS

Descriptive statistics are descriptions answers of respondents aiming for provide answers or descriptive data which is evaluated from the mean (mean), deviation standard deviation, minimum value (min), and the maximum value (max). In this research mean is the average value of the whole respondent whereas standard deviation is variation of respondents’ answers. If value standard deviation given close to zero then the less varied the respondent’s answer, but if the standard deviation is given away from zero then the respondent’s answer increasingly vary. Minimum value is the answer (scale) lowest selected respondents and grades The maximum is the highest (scale) answer selected by the respondent.

Intangible Service Quality has value mean 3.7521 which means the average of the respondents not satisfied with the overall quality of service Jakarta Convention Center. Intangible Service Quality is measured using 10 items statement using 5 point scale likert. From 117 respondents’ answers obtained values averaging 3.7521 indicating that respondents feel dissatisfied with quality services Jakarta Convention Center.  That matter assessed by respondents through employee services.

Ambient Condition has a mean value 4.2821 which means the average – the average respondent states that environmental conditions are owned Jakarta Convention Center is enough good. Ambient Condition is measured by using 4 items statement with using a 5 point Likert scale. From 117 answers respondents got an average score of 4,2821 shows that respondents are satisfied to the environmental conditions owned by Jakarta Convention Center. It is judged by respondents through a comfortable feeling.

Space / Function has a mean value of 3.7094 which means the average respondents are less satisfied that room owned by Jakarta Convention Center. Space / Function is measured with using 3 items statement with using a 5 point Likert scale. From 117 answers respondents got an average score of 3,7094 shows that respondents feel less satisfied with the room owned by Jakarta Convention Center. It is judged by respondents through the venue’s furniture.

 

Table 2. Statistic Descriptive

Variabel Mean Std. Deviation
Intangible Service Quality 3,7521 ,45307
Ambient Condition 4,2821 ,65451
Space/Function 3,7094 ,67030
Event Cost 4,2308 ,46209
Event Convenience 4,0256 ,53275
Event Satisfaction 4,3718 ,41212

 

Sign, Symbols & Artefact have value mean 4.0769 which means the average of the respondents satisfied that the information mark owned by Jakarta Convention Center is good enough. Sign, Symbols & Artefact is measured using 3 items statement using 5 point scale Likert. From 117 respondents’ answers obtained values averaging 4,0769 indicating that respondents are satisfied with the information sign which is owned by Jakarta Convention Center. This assessed by respondents through language which is used on the existing signs.

Event Cost has a mean value of 4.2308 mean the average respondent stated that the cost of the event owned by the Jakarta Convention Center is good enough. Event Cost is measured by using 5 items statement with using a 5 point Likert scale. From 117 answers the respondents got an average value of 4,2308 shows that respondents are satisfied to the cost of events owned by Jakarta Convention Center. It is judged by respondents through the cost of event tickets.

Event Convenience has a mean value 4.0256 which means the average respondent feels comfortable with a Jakarta-owned event Convention Center. Event Convenience is measured using 3 statement items with using a 5 point Likert scale. From 117 answer the respondents got an average score of 4,0256 shows that respondents feel comfortable with events held by the Jakarta Convention Center. It is assessed by respondents through the venue is easy to reach.

Event Satisfaction has a mean value 4.3718 which means the average respondent feels satisfied with the event held Jakarta Convention Center is good enough. Event Satisfaction is measured using 4 items statement with using a 5 point Likert scale. From 117 answers respondents got an average score of 4.3718 shows that respondents are satisfied with the Jakarta Convention Center. It is assessed by respondents through feeling happy.

 

Hypothesis Testing Results and Discussion

Analysis of results and interpretation is done based on test results on the hypothesis. The purpose of testing this hypothesis is to reject the null hypothesis (Ho) so the hypothesis alternative (Ha) is acceptable. Hypothesis testing done using model analysis the structural equation (SEM) which is the most appropriate statistical method for this research. The purpose of this method is to predict changes in dependent variable / criterion variable attributed to those changes occurs in a number of independent variables (independent / predictor variable). The fault tolerance limit (α) is used is 5% (0.05). Test result hypothesis by comparing t values with estimated value of beta coefficient (α) arranged in table 4

Based on table 5, the event service dimension quality has a p-value value of 0.625 more magnitude of the error rate (α = 5%), with this stated no effect event service quality to event satisfaction.

Based on table 3, the event cost dimension has a p-value value of 0.362 is greater of the error rate (α = 5%), with this stated no effect event cost to event satisfaction. For dimensional event convenience has p-value value of 0.791 greater than the error rate.

 

Table 3. Hypothesis Experiment Result

Hypothesis Beta Sig Result
H1 Event Service Quality Event Satisfaction ,056 ,625 Not Supported
H2 Event Cost Event Satisfaction -,086 ,362 Not Supported
H3 Event Convenience Event Satisfaction -,028 ,791 Not Supported

 

(α = 5%), thus it is stated not there is influence of event convenience against event satisfaction.

Based on H1 hypothesis test result – H3 is known that there is no influence positive between value equity (event service quality, event cost, event convenience) to the customer satisfaction in this case event venue satisfaction. This is inversely proportional to the research previous where the results of hypothesis testing H1 – H3 states that there is a positive influence between the two variables mentioned above.

CONCLUSION

The results of testing the first hypothesis test event service quality variable to event satisfaction in table hypothesis testing. Has a p-value of 0.625> 0.05 where his decision is Ho backed which means there is no positive effect of event service quality to event satisfaction. Results of testing the second hypothesis test event cost variable to event satisfaction. In the hypothesis testing table. Has a value of p – value of 0.362> 0.05 where the decision is Ho supported which means is not present the positive influence of event cost on the event satisfaction. The results of testing the third test hypothesis event variable conveniences to event satisfaction. In the hypothesis testing table. Has a p-value of 0.791> 0.05 where his decision is Ho backed which means there is no positive influence of event conveniences to event satisfaction.

This research can provide input which can be considered by the leadership at Jakarta Convention Center in braiding cooperation with the event organizer on a regular basis professional especially event service manager, in improving customer satisfaction. Respondents will have various considerations before finally deciding to feel satisfied with service quality based on circumstances space, ambience and sign. Keep in mind by the leadership to be able apply the right strategy in order to meet customer needs.

Overall, this study can useful to increase knowledge and expertise for leaders at the Jakarta Convention Center, regarding the role of variable event value equity so it can be practiced in more improve customer satisfaction in this regard managing local and international scale events. As for suggestions that can be given to further research to improve limitations to this study are: (1) for further research can use other convention center such as; Jakarta International Expo Kemayoran, ICE BSD, or Sentul Convention Center, as object comparison research. (2) Further research is expected add another variable as well affect the behavioral intention and brand value.

 

REFERENCES

Brown, G., & Smith, A. S. (2016). Revisiting the host city: An empirical examination of sport involment, place attachement, event satisfaction and spectator intentions at the London Olympics. Tourism Management, 160, 161.

Fernandez, J. G., Ruiz, P. G., Gavira, J. F., Colon, L. V., Pitts, B., & Garcia, A. B. (2017). The effects of service convenience and perceived quality on perceived value, satisfaction and loyalty in low-cost fitness centers. Sport Management Review, 4.

Hapsari, R., Clemes, M., & Dean, D. (2016). The Mediating Role of Perceived Value on the Relationship between Service Quality and Customer Satisfaction: Evidence from Indonesian Airline Passengers . Procedia Economics and Finance , 389.

Hussein, A. S. (2016). How Event Awareness, Event Quality and Event Image Creates Visitor Revisit Intention?: a lesson from car freeday event . Procedia Economics and Finance , 396-400.

Tanford, S., & Jung, S. (2017). Festival attributes and perceptions: A meta-analysis of relationships with satisfaction and loyalty. Tourism Management, 212.

Uzunboylu, N. (2016). Service Quality in International Conference Industry; A Case Study of WCES 2015. Procedia Economics and Finance , 44, 45.

Yuruk, P., Akyol, A., & Simsek, G. G. (2017). Analyzing the effects of social impacts of events on satisfaction and loyalty. Tourism Management, 367, 368.

 

 


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