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Enhancing the Service Quality Of Indonesia Inbound Tourist Industry by Using Customer Experience Management CEM!
CHAPTER 1
INTRODUCTION
1.0 Background to the Research
The tourism industry for some countries has become a ma"or source of income for the
country# Indonesia is no exception$ %s an archipelago country exploring the beauties of
its nature and cultured attraction has become a ma"or agenda for tourism industry$ The
tourism industry for Indonesia is the top three resource income for the country$ In the
year &''(# the tourism industry )as highly successful* tourists came over and over untilIndonesia faced the monetary crisis# )hich affected to the tourism industry badly
Embassy Indonesia of Otta)a# +,,-!$
.hen the monetary crisis )as over# the Indonesia tourism industry found a declining
number of tourists to Indonesia$ One of the identified )as the degradation of tourism
services /uality$ The Indonesia tourism industry has been left behind from other countries
that faced similar problem li0e Thailand$ Tourists have changed their agenda from
Indonesia to other countries$ They thoughts that the /uality of service from Indonesiatourism industry is far from )hat they expected$
The other factor that had a ma"or affect in the declining number of tourists is the
economy# security# facility and infrastructure# services# and product$ Economy and the
security factor are those factors outside the control of any tourism industry$ These t)o
factors are not discussed further in this thesis$ 1o)ever# those remaining other factors#
facilities# service and product are under the control of the management in tourism
industry$ Therefore# the pro"ect addresses concerns about those three factors$
%s mentioned previously the /uality of service is one determining factor to the success of
the Indonesia tourism industry$ In addition# Indonesia tourism industry is also facing
other problems such as mar0eting# and being able to honour customer value and to meet
customer2s expectations$ The Indonesia tourism industry does not have a good
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information system and that is a lac0 of /uality of services to meet their customers2 needs
and expectations$ It is true that the Indonesia board of tourism has conducted a campaign
by declaring the year of +,,- as the 3Indonesia 4isit 5ear6 Indonesia# +,,-! but the
result )as not good as expected$ To overcome the )ea0ness# the tourism industry should
be developed to the ne) direction )here they should ta0e care of the )ants and needs and
be able to deliver service /uality according to the criteria of the customers$ 7y measuring
their )ants and needs# the industry can meet the customer2s satisfaction$
%irport service are one important element of the tourism industry$ 7andung airport is one
of the airports in Indonesia )here domestic and inbound tourists are and go to 7andung
and its surrounding area$ It is the main gate of .est 8ava province and so to measure the
satisfaction of the customer to the service /uality delivered by 7andung airport is the
valuable$
7ase on the challenge the Indonesia tourism industry is facing and the effort to revive the
industry# the researcher suggests the 7andung Indonesia! tourism industry adopts the
Customer Experience Management CEM! approach )hich is a po)erful )ay to enhance
/uality of service to achieve customer satisfaction$
%ccording to Schmitt +,,9! Customer Experience Management CEM! is 3theprocess
of strategically managing the customers entire experience with product and companies$Customer Experience Management CEM! is a 3truly customer focused management
concept. Customer Experience Management (CEM) is a methodology that try to
overcome the gap between the company and the customer6 .alliser# +,,:!
7ased on the definition above# the 7andung tourism industry can be more focused on
ho) to manage the customer experience and then provide goods and services matches to
achieve customer satisfaction$
The customer could become the facilitator for the company by telling others about the
experience$ 7y telling their experiences that can be a medium in ma0ing the connection
bet)een the customers2s and company$ The business )ill be successful )hen the
company has the capability to evaluate exactly )hat 0ind of value they get from customer
experience# the value of product that they are delivering# and most important is ho) to get
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positive response from the customer$ The positive response from the customer is an
indication of customer satisfaction$ %s mentioned by ;otler and %rmstrong &'''!#
customer satisfaction isrom the Customer Experience Management side# to achieve a better /uality service the
Indonesia tourism industry can apply the strategies that guide to provide experiential
value for customers to achieve customer satisfaction Schmitt# +,,9!$ The benefit of
using customer experience management CEM! is that the Indonesia tourism industries
0no) ho) to measure the customer need and delivery the service /uality based on
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customer value# and at the end the industry have the capability to provide an expected
value for their customer in order to achieve customer satisfaction$
1.1 Research Probe! " Research #uest$on
This study )ill attempt to investigate how Customer Experience Management (CEM)
through IT/IS can enhance the quality of service at an!ung airport as an element of
the tourism in!ustry to achieve customer satisfaction$ The study attempts to find )hat is
platform needed to deliver a service /uality in the Indonesia inbound tourism industry$
1.% A$! and Ob&ect$'es
The aim of this research is to establish a process or the approach of Customer Experience
Management CEM! through IT?IS to enhance the /uality of service in 7andung airport
service element of the tourism industry to achieve customer satisfaction$
The ob"ectives of the research )ill be%CT ?EHI4E@%7HE
COGCHUSIOG %G@ECOMMEG%TIOG
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Customer Satisfaction< 1offman and 7ateson &''F! defined customer satisfaction is a
comparison of customer expectations to perceptions regarding the actual service
encounter$
Inbound tourism industry< 7ased on %ustralia Tourism +,,-! Inbound tourism covers allinternational tourists traffic entering a country$
1.3 De$!$tat$on o* sco/e and 4e- assu!/t$on
The delimitation of this research )ill beinally the layout for the rest
of this dissertation also presented$
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CHAPTER %
6ITERATURE RE8IE9
This chapter is )ill be revie)ed literature that relevant to the research area and each of
the research /uestion# as it )as stated on the purpose of the research at the end of chapter
one$
%.1 Introduct$on
Customer is the heart for every business in any industry# )ithout customers the industries
do not have capability to gro) if the customer as a central is not involving and not
supporting to the business$ The interaction bet)een industry and customer happens )hen
the customers do a transaction for the needs and )ants from the industry and the business
itself provides the needs of the customer# )hich are goods and services$
Every industry has their o)n contribution the economy gro)th of countries$ Tourism
industry is one of those industries$ >or several countries# the tourism industry plays an
important role in their economy because the industry is the main income of the countries$
>or Indonesia# the tourism industry also became the ma"or generating income and highly
participates to Indonesian economy$
%irport service as elements of tourism industry become the main gate to measure the
satisfaction of the customer to the /uality of service that delivered by 7andung airport$
JCustomer experience management CEM! is "the process of strategically managing a
customer#s entire experience with a product or a company"$ @elationship mar0eting
focuses on establishing and building a longBterm relationship bet)een a company and acustomer$ Several approaches have been exposing includes customer experience
management# customer relationship management# loyalty programs# and database
mar0eting .hite Aaper!$ The main point of the customer experience management is ho)
the customer engaging )ith the brand )ithin industry and at )hich the industry can ma0e
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of bra0e the relationship$ The experience from the customer is start )hen they start to
interact )ith the industry# such as )hen the customer decide to use one of the company in
the industry# come to the company# choose the product# use it can feel it and en"oy it# that
is the experience of the customer$
>rom the definition Customer Experience Management CEM! above it clearly mention
ho) to managing the customers )ants and need based on the customers experience and
ho) the company engage )ith their products$ 7y minimi=ing the gap bet)een customers
)ith employees also system from the company# understand and translate the customer2s
)ants and needs into a products and services$ 1o) to control and delivered the products
and service that can matches )ith the customer experience$
%.%. Custo!er E:/er$ence ,anage!ent ;CE,< Current Pract$ce
@ecently a ne) approach that is able to provide a vie) of total customer experience has
been developed$ The ne) approach is 0no)n as Customer Experience Management
CEM!6 Schmitt# +,,9!$ This approach defines 3the mar0et and competition6 based on
socio cultural and business usage context# and companies )ould use research to gather
broad K based customer intelligence instead of precise but inconse/uential measurement$
Schmitt +,,9! says Customer Experience Management CEM! is truly customer focusedmanagement concept$ Customer Experience Management CEM! goes far beyond
Customer @elationship Management C@M! as it moves from recording transactions to
building rich relations )ith customer$ Customer Experience Management CEM!
provides value to their customer by delivering information# services# and interaction that
result in completing experience$
Customer Experience Management CEM! also ta0es an integrative approach to
customers2 needs# loo0ing internally as )ell externally$
>rom the definition above# Customer Experience Management has the capability to help
the company to understand better the customer )ants and needs$ 7y using Customer
Experience Management the company does not only record transaction but also building
the relation )ith customers Schmitt# +,,9!$ 7y building the relationship )ith the
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customer it can overcome gap bet)een customers2 needs and services the company
provides$ That definition also mentions an integrative approach to customer# loo0ing
internally as )ell externally means that it does not only ma0e an approach to the
customers from one side but the company also sees the needs the from both of sides#
namely# the customer point of vie) and put them self in the customers2 shoes$
Similar to Schmitt +,,9!# ;alyani and Araveen A +,,(! defined 3Customer Experience
Management as the methodology that tries to overcome the gap between the company
and the customer$$ That definition sho)s that Customer Experience Management CEM!
tries to minimi=e the gap bet)een the customer and companies by understanding the
value better of products and services through the customer2s point of vie)$ 7eside to
understand the customer point of vie)# the management of the companies has also to
provide the )ants and needs of their employees$ The employees are the main frontier in
the industries* because it is them the customers ma0e the first interaction before they
purchase the goods and services$
8oe >letcher +,,F! presents 3Customer Experience Management is a holistic approach
to managing the experiences of your customer with your company cutting across
functions and silos! to drive customer satisfaction! loyalty and profitability at all levels of
the organi%ation. &he concept can be simple ' consistently provide positive! valuable
experience to your customers and they will return loyally to you repeatedlyand by now
you now that leads to increased profitability. mplementation is the hard part ' a
complexity that continually challenges most organi%ations today6$
The company should provide a valuable experience of goods and service that can attract
the customers$ The most challenging matter here is ho) to provide the experience goods
and services because every customers have a different point of vie) about the experience
of goods and services$ %lso from the experience that companies provide it becomes themain role )hen the customers satisfied# and if the customers satisfied it means the
customer2s needs could match )ith the products and services and they )ill purchase
repeatedly )hich can change of the status of the customers from satisfaction to loyalty of
the product$
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%.( Co!/ar$son Custo!er E:/er$ence ,anage!ent =$th Custo!er
Reat$onsh$/ ,anage!ent
To have a better comparison it might be good if the discussion in this section starts )ith
the meaning of Customer @elationship Management and then it is compared )ith the
definition of Customer Experience Management as has been discussed previously$ To
start )ith# it can be said that many researchers said that the customer experience
management is the ne) approach of customer relationship management$ 1ill +,,(! for
example# mentions about C@M as follo)s$
3Customer @elationship Management more focused to the organi=ation# product and the
transaction$ It )as not an insideBout vie)$ It )as the communicated of the brand 31ill#
+,,(!$
The brand is point of vie)ed from customers about company2s name# tool of advertising#
company2s says and ho) the company2s says and does it$ 3&he C*M is more to build the
relationship with the customer. Customer Experience Management is how to focus on the
customer! and to see how the reaction of the customer to your brand! the advertisement!
to purchasing and see how the customer reacts with their product and service. &he focus
of CEM is not on transaction but also focus on all contact during all until end experience
31ill# +,,(!$ 7ased on )hat 1ill said the Customer @elationship Management C@M! is
more into building the relationship )ith the customer by using the brand as a
communication tool and Customer @elationship Management C@M! only sees ho) the
customer reacts to the products and services that company offered$
7ut Customer Experience Management concerns are more )ider compared )ith
Customer @elationship Management C@M!# because Customer Experience Management
uses all the process of C@M but it does not stop until it is seen ho) the customer react but
also still have another process )hich is to see ho) the experience of the products and
services from the customers point of vie)$ It is a good thing to evaluate and ma0e
improvement to the products and services# so in the future the company understands
better )hen they )ants to release a ne) products and services$
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The same point of vie) about CEM is# Customer Experience Management CEM! a part
process of customer relationship management C@M! the actual# delivering part# setting
brand value# planning strategy and tactics# ne) product development# collecting and
analysis data# designing customer centric process# recruiting and re)arding for all
employee staff to focus on customer# building a partnership# six sigma# activity based on
costing# customer profitability modelling# integration architectures K all of these parts are
managing the relationship )ith the customer$ The real experience is the "ust the Lmoment
of truth2$ In artner2s eight building bloc0s of C@M# customer experience is "ust one of
the bloc0s ;ir0by# +,,F!$ 1o)ever# Customer @elationship Management C@M! is the
root of Customer Experience Management CEM!$ Customer Experience Management is
not only for a better service but for also creating a feel good factor using all senses# on
top the goods and services$
The co!/ar$son o* the ob&ect$'es bet=een CE, and CR,
CE, ob&ect$'e CR, Ob&ect$'e
4no= =hat -our custo!er th$nk
toda-> so -ou can act $!!ed$ate-
@educe cost internally
Ident$*- and res/ond ?u$ck- to
custo!er $ssues and o//ortun$t$es
Increase employee efficiency andeffectiveness
7a'e at@r$sk custo!er Increase your ability to ac/uire# retain# upBand crossBsell customers and prospects
O/t$!$e reat$onsh$/ *$nanc$a- Improve the customer relationship throughmore personali=ed touchBpoints
Indent$*- the best $n'est!ent Capture historical customer transaction data
Table +$, Comparison ob"ective CEM and C@M
>red @eichheld# +,,F!
3&he core purpose of C*M is to increase the operational efficiency and effectiveness of
your customer relationships across all touch points. +ecause it does not provide any
direct insight from your customers perspective! it can only tell you the what$,i.e.!
what the customer did,and not the why$>red @eichheld# +,,F!$
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@a"ola +,,9! emphasi=ed that Customer @elationship Management C@M! 3is more and
more destined to address t)o opposing concept< efficiency and effectiveness$ One hand a
company needs to be effective on the mar0et in order to manage relationships )ith
customers# maintain its mar0et share and improve it mar0et prevention* on the other hand
company need to be more efficient$6
>rom those opinions it can be seen clearly that the core purpose of C@M is efficiency and
effectiveness# only the second opinion clearly mentions that the effective is re/uired
more not only on the management the relationship )ith the customers but also the
company needs to be more efficient$
3J$-t its highest level! C*M defines what the company wants from the customer
relationship and gathers the information and insight that is analy%ed against products
and service to find optimum opportunities to sell!$ according to avid *ance! managing
director of *ound (/.0.) 1imited in Thompson#+,,(! $ 3CEM is the mechanism by
which the customer is engaged to optimi%e the potential customer loyalty and long2term
value that is defined by C*M. &he customer experience is the emotional part of any
transactionThompson# +,,(!$6
>rom the explanation above it clear that CEM is a part of business strategy not only the
technology$ C@M is gathering all the information and analy=ing to find optimum
opportunities to sell )hile CEM is the mechanisms that engage and search the potential
of customer loyalty for a long term$
.ith CEM# you 0no) )hat drives your customers# )hat they )ant today not )hat they
)anted one month ago!# and ho) it all influences their loyalty to your company$ 1aving
these insights delivered in a timely manner to your decisionBma0ers enables you to react
faster and )ith more agility to the business issues and opportunities# you face daily$
7ecause CEM tells you the 3)hy6 behind customer behaviour e$g$# 0ey drivers in
purchase decisionsyou can optimi=e the customer experience according to your
business ob"ectives >red @eichheld# +,,F!$ Customer experience management CEM!
can accelerate the company ability to respond not to only customer issues but also
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customer business opportunities$ Customer Experience Management also helps the
company deliver the value of the customer in the right )ay$
>rom )hat >letcher explained above# the CEM is more detail )hen the company dealing
)ith the customers$ CEM explores until the )hy the customer used the products andservices ans)ered )hile the C@M stops at )hat customers did )ith the products and
services$ CEM gives more detail information and can help the company to react /uic0ly
based on )hy customers buy the products and services# and at the end the company can
provide the ne) products and services based on the customer expectation$
7ased on the comparison ob"ective above# it is better for the Indonesia tourism industry to
implement CEM become the system in the industry because )ith CEM the industry can
react to the changes from their customer /uic0ly$ %lso# CEM can identify and giverespond in a short period to every opportunity that organi=ation capture$ 1o) to
understand )hat the customer )ants is very important because the customer also have
roles in the industry$ If the Indonesia tourism industries only provide )hat the industry
thin0 )ithout see )hat the customer )ants it means the industry )ill never gro)$ >rom
)hat the assumption above it can ta0e a red line that by applying CEM it )ill help the
Indonesia inbound tourism industry 0no)ing ho) and )hen to respond the opportunity
that comes to the industry$
%.+ 4e- Ee!ents o* Custo!er E:/er$ence ,anage!ent
Customer Experience Management is a crossBfunctional discipline$ It crosses the
boundaries of typical functions and departments$ It ta0es a holistic approach and includes
all customerBfacing functions as )ell as those that do not typically have a customer role
or responsibility# for example# >inance# IT# 1uman @esources# and so on$
3Customer Experience Management may begin in Mar0eting# Customer Service$ .hen
responsibility for the Customer Experience lies only in those areas# ho)ever# the
company is not really managing the total Customer Experience$ In fact# at that point# the
company is probably ta0ing only typical customer satisfaction improvements approach
38oe >letcher# +,,F!$ Therefore# CEM should have the follo)ing 0ey elements# namely#
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cover both analytical and creative# strategy and implementation# and focuses both on
external and internal$
CE, $s Both Ana-t$ca and creat$'e. The CEM frame)or0 includes both analytical
and creative concept and tools$ This 0ind of combination is highly unusual$ The analyticalis needed for structuring# analy=ing# and /uantifying the business# for catching customer2s
attention# and satisfying their )ants and needs$ The CEM frame)or0 meshes the )orlds
of the analytical and the creative$ It is accurate# internally consistent# and )ell structured$
The frame)or0 is creative in its use of novel concept# uni/ue tools# and unusual research
techni/ues for gaining customer insight$ Schmitt# +,,9!
CE, $s Both 7trateg- and I!/e!entat$on. Most of customer frame)or0s are
concerned either )ith strategy or )ith implementation# but not )ith CEM$ CEM includes
both strategy and implementation in a uniform frame)or0$ Strategic considerations are at
the core of the first t)o steps< analy=ing the experiential )orld of the customer and
building the experiential platform$ Gext three implementation steps focus on the brand
experience# the customer interface# and continuous innovation Schmitt# +,,9!$
CE,s ocus $s e:terna and $nterna. The foremost concern of CEM is the external
customer! experience$ CEM frame)or0 analyses both strategy and consumers and 7+7
customer and design strategy and implementation$ 1o)ever# CEM also concerns )ith the
3internal experience6 the employee experience!$ .hy CEM should also concern )ith
employee because the employee feel and the experience of the company and its initiatives
is critical for delivering the right brand experience through communication# enhancing
the customer interface face to face and via the call centre!# and encouraging continuous
innovation initiative$ Schmitt# +,,9!$
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%. Ad'antages o* Custo!er E:/er$ence ,anage!ent ;CE,urthermore# Quaero +,,-! mentions other advantages from customer experience
management CEM! areletcher +,,F! also mentioned the
advantages of CEM on the vie) of the interaction bet)een the company and the
customers$ 7ased on 8oe >letcher +,,F!# some benefits of a successful Customer
Experience Management CEM! strategy or approach arerom )hat >letcher +,,F! mentioned above# it )ill help the organi=ation )ith in
industry to understand more of )hat step the company should ta0e to start the interaction
)ith the customer and also 0no) ho) to do to ma0e the industry itself gro)$
%ccording to explanation above# the advantage from >letcher +,,F! is more suitable
)ith the Indonesia inbound tourist situation$ 7ecause >letcher +,,F! clearly mentioned
that one of the advantages of CEM are can improve service /uality and customer
satisfaction$
%. R$sk actors to 6ook Out or Custo!er E:/er$ence ,anage!ent
;CE,rom the ap that has been explained above there are some )ay to minimi=e the gap
bet)een the management and the customers$
&$ The ap & can be eliminate if the management start to collect the data on customer
expectations then relate customer data to overall service strategy$ 7eside that themanagement also has to increase the interaction )ith the customers also increase the
internal communication$ The most important is the management must trac0 the
performance on satisfaction to the product and their services$
+$ The ap +# the management must commit )ith their /uality service standards$ The
)ords 3can2t be done6 cannot use any longer must see and create for any possibilities
in order to give appropriate /uality service$ The management also has to see the goals
setting of the companies itself$
9$ The ap 9# to eliminate the performance gap# the companies must have definition of
standard of excellent service$ The companies must give the training for their
employee about customers also have to define the customer service them$ The
companies must empo)er their employees to do team )or0 to solve the problems$
$ The gap can be eliminate by brea0do)n the barriers bet)een departments and do
communication freely but also follo) the standard and communicate policies )ith the
customers and the most important is ho) to manage the customer expectations by use
the communications$
:$ The gap : is the result of the other gaps$ 1o) the companies diagnose the other gaps
as the feedbac0$ In order to diagnose the feedbac0# the company must be actively in
order to improve the environment$
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>igure +$& Aerceived Services
Source< Schneider and .hite# +,,9!
In perceived the services /uality there is relation )ith the service /uality dimensions$ The
customers must perceive the service /uality according to the service /uality dimensions$
issimilar to Schneider and .hite +,,9!# Gational @esearch Council US! listed by
Peithhaml et al &'',! the determinant of service /ualities to perceived service /uality
arerom the arguments above it comes )ith the conclusion that customer satisfaction can beidentified used the SE@4QU%H )ith the five basic dimension of service /uality from
Aarasuraman et al +,,! that helps to measure customer satisfaction met )ith the
expectation of the customers$
%.5 Indones$a Inbound Tour$st at Bandung
7ase on %ustralia Tourism +,,-! Inbound tourism covers all international tourists traffic
entering a country$
There are many benefits to export tourism including %ustralia Tourism# +,,-!urther study .acho)ia0# +,,(! defined inbound tourism as non residence visitors
)ithin a given country for leisure# visiting friends and business$
Most of inbound tourist that used 7andung airport as their first entrance come from
%SE%G region especially Malaysia$ 7ase on statistic from 7andung airport +,,-!# the
inbound visitors )ho come is around '$(-9 people and F- of it comes from Malaysia$
The number of tourists from Malaysia is significant because in 7andung airport until the
end of 8anuary +,,' only have one international flight from ;uala Humpur to 7andung
and 7andung to ;uala Humpur$
>rom the benefit that explain above# Indonesia inbound tourism industry also can achieve
same li0e %ustralia only if the industry 0no) ho) to understand the inbound tourist
culture also 0no) ho) to manage the business by follo)ed the experience from the
customers# but it needed a long time investment both time and money$
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%. 9h- Custo!er E:/er$ence ,anage!ent ;CE,< Is Needed B-
Bandung A$r/ort As An Ee!ent O* The Inbound Indones$a Tour$st
Industr-F
7andung airport currently became one of the international airports in Indonesia$$ %s the
first entrance for inbound tourist# the airport should give good impressions$ Starting )ith
a good impression it )ill ma0e a great experience for the tourists especially for inbound
tourists$ The facilities and the services that the 7andung management has been provided
seems not suitable for international airport$ 7andung airport is still leaving behind from
other international airports in so many factors such as from the Services# human
resources# management# system# and IT$ %nd that can be eliminate by using CEM as the
frame)or0s
Customers have needs that include# among others# function# price# /uality# emotion#
prestige# value and convenience$ 1o) )ell the products or services meet those needs
defines the experience that the customer has$ 1o) )ell the experience meets# fails or
exceeds the customer2s expectations determines )hether the customer has a positive#
neutral# or negative experience$ That# in return# determines the attitudes of the customers
and decision )hether they continue to purchase the product or stop there$
To avoid and minimi=e the misunderstanding in catching the customer expectation the
Indonesia tourism industry should adopt Customer Experience Management$ Of course#
before they apply the Customer Experience Management the organi=ation has to be ready
)here the industry internally e/uipped itself to deliver Customer Experience
Management$ To do that the organi=ation has to across or$entat$on areas )hichare
Colin Sha)# +,,:!urthermore# the
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Customer Experience Management CEM! frame)or0 sheds a ne) light on perennial
mar0eting and management issues such as segmentation and targeting# positioning#
branding# service and innovation$
Schmitt# +,,9!
7te/ 12 Ana-$ng the E:/er$ent$a 9ord o* Custo!er
The first step of CEM frame)or0 provides original insight into the customer )orld$ >or
consumer mar0et# it is necessary to analy=e the socio cultural context in )hich consumer
operate including their experiential needs and )ants as )ell as their lifestyles$ >or
example# )e need to analy=e )ho are the visitors and )here are they coming from some
more )e need to 0no) about their li0es and disli0es that )ould be possible through this
step$ Schmitt# +,,9!
7te/ %2 Bu$d$ng the E:/er$ent$a Pat*or!
The experiential platform is the 0ey connection point bet)een strategy and
implementation$ Instead# the experiential platform includes a dynamic# multisensory#
multidimensional depiction of the desired experience and it specific the value that the
customer can expert from the product$ The platform culminates in an overall
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implementation theme for coordinating subse/uent mar0eting and communication efforts
and future innovation$ Schmitt# +,,9!
7te/ (2 Des$gn$ng the Brand E:/er$ence
The brand experience includes first experiential features and product aesthetics that can
serve as a "umpingB ,ff point for the customer2s band experience$ Gext# the brand
experience includes an appealing 3loo0 and feel6 in logos and signage# pac0aging and
retail spaces$ >inally appropriate experiential messages and imagery in advertising and
collaterals as )ell as online# complete the brand experience$ Schmitt# +,,9!
7te/ +2 7tructur$ng the Custo!er Inter*ace
This step includes all sorts of dynamic exchanges and contact points )ith the customer Kface to face in a store$ The interface design must incorporate intangible elements i$e$
voice# attitude and behavioural style! and address experiential consistency over time and
coherence among various touch points$ Schmitt# +,,9!
7te/ 2 Engag$ng $n Cont$nuous Inno'at$on
>inally# the Indonesian Tourism industry must reflect the experiential platform a process I
call 3engaging in continuous innovation includes anything that improves end customer
personal lives and business customers )or0 life and can range from ma"or inventions to
small innovation in the products form$ Innovations of all 0inds need to be plan managed
and mar0et so that they improve the customer experience$ Schmitt# +,,9!
In the CEM frame)or0# the managements as the representative of the organi=ation need
to analy=e precede strategy# and strategy precedes implementation$ .hen it comes to the
implementation# the management 3is not necessarily6 do the frame)or0 )ith planned and
execute in order presented$ The management can decide )hich one from the CEM
frame)or0 is more priority to the organi=ation$ %n important attributes of CEM
frame)or0s is that it focused on all sort of customerBrelated issues$ The CEM frame)or0
is combine the analytical and the creative# considers both strategy and implementation#
and does so externally and internally$
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%.1% Concus$on
This chapter revie)ed of a critical analysis of customer experience management such as
advantages and disadvantages$ The service /uality and customer satisfaction also )ere
revie)ed$ The uses of IT?IS to enhance the CEM in 7andung airport also have been
addressed$ Then it also revie)ed ho) the inbound tourist in 7andung airport and
follo)ed by )hy Indonesia inbound tourist needed CEM$ Moreover# the frame)or0 of
CEM also )as highlighted$
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CHAPTER (
,ETHODO6O
This chapter )ill cover the methodology used in this thesis$ These are the steps that need
to be used in this chapter# and the steps are displayed in figure 9igure 9
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%s commonly understood# research method is a comprehensive scientific )or0 that
addresss all philosophies# theories# concepts# and procedure of doing the )or0s up to ho)
to )rite do)n the report$ In the /uantitative tradition# the social research covers the entire
research process including< formulating research /uestions* sampling probability and
non probability!* measurement surveys# scaling# /ualitative# unobtrusive!* research
design experimental and /uasiBexperimental!* data analysis* and# )riting the research
paper Trochim# +,,(!$These include a! secondary )ritten data# b! primary
documentary data and intervie)s )ith 0ey respondent$
Inthe /ualitative research# thee procedure also includes general things as done by
/uantitative research$ 1o)ever# as the ob"ective of /ualitative research is different from
/uantitative one# some procedures such as selecting samples and developing instruments
basedonn measurementprinciples are not applied$ Instead# as the sample of the /ualitative
research is generally a case then the problem of dra)ing generali=ation is not also a
problem$ It is also a very strong basis of /ualitative research to collect valid data or the
term trust)orthiness is more preferable# not by valid instrument as in the /uantitative# but
by ensuringthat datuma collected are representing the empirical truth on the site as
thought and experienced by the sub"ect$ %s generali=ation is not a problem it is also not a
problem for /ualitative research to establish reliability of the instrument used$
(.% )ust$*$cat$on *or the Parad$g! and ,ethodoog-
The present research )ill use /ualitative research as the problem relates )ith the opinion
of customers on the services they experienced in a particular$ The opinion is# of course#
basedonn the experiences and ho) the customers sub"ectively sensed and formulated the
experiences to be their opinion$ So it is very much related )ith the basic concept of CEM
of )hich is the focus of the present study$ %s mentioned by Hoc0e# Silverman and
Spirduso +,,! the purpose of /ualitative research is 3to understand a situation from the
perspective of the participant6$ The situation in the present study is the services offered
by 7andung airport for the inbound tourists$ The perspective of the participant is the
opinion )hich reflects the experience of the tourists$ In the )ords of Hoc0e# Silverman
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and Spirduso +,,
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Qualitative method is a method of research using data collection procedures and
techni/ues# analysis# and report )riting differs from traditional /uantitative approaches$
The use of purposeful sampling# collection of data by openBended instrument# analysis of
the text or pictures# representation of information in figures and tables# and personal
interpretation of the finding all inform /ualitative procedures Cres)ell# +,,+!$
Quantitative methods involve the process of collecting# analy=ing# interpreting# and
)riting the result of a study in a very )ell established research tradition as much as done
in natural sciences$ Experimental and survey designs are commonly used$ Specific
methods exist in both survey and experimental research that related to identify a
population and sample# specifying the strategy of in/uiry# collecting and analy=ing data#
presenting the result# ma0ing an interpretation# and )riting the research in a manner
consistent )ith a survey or experimental study Cres)ell# +,,+!$
>rom the definition above# the /ualitative method seems to be the most suitable method
that can be used in this research$ It is also the opinion of %rtmatunga et al+,,+! )hen
they state that /ualitative research is carried out through intense and?or prolonged contact
)ith a situation$ %s the CEM situation is the real life situation there is no room for doing
the research by using experimental design$ >urthermore# CEM research re/uires an
intense contact bet)een researcher and the sub"ects in that the information provided by
the sub"ects )ill be very deep# full of meaning# and valid$ The experience of tourists
reflects the everyday life of individuals# groups# societies and organi=ation in a particular
circumstance called tourism industry# therefore# it cannot duplicate in an experimental
situation$ This is the reason )hy the present study considers the use of /ualitative
methodology can serve the purpose of the study better$
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(.+ Research Procedures
The procedures of this research areood# and 7everages
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Goteor the price
charged in the shops the opinion is a bit different from the selection of the shops$ Most
respondent consider as fair (+! and only 9+ respondents or +F the price is good$
1o)ever the number of respondents )ho consider the price poor is also /uite big to
consider# namely# &+ respondents or about &,$ Go one consider the price either
excellent or very poor$
% very similar picture of responses from the respondents is about the choice of food and
beverages at the outlet and the price of food and beverages at the concerned outlet$ Go
one consider the choice or the price is excellent but there are t)o respondents less than
+! consider the choice and the price is very poor$ @egarding the services at food and
beverages most respondents# namely# -F out of &&F or F consider that the services are
at fair level but more respondent &'! consider the services poor compared to those
consider the services good F!$
%cross the indicators data on Table $& sho) that there is a tendency that most
respondents mar0ed the facility and services are fair to good$ %cross the indicators there
are 9, out of :-: :-! respondents considered them as fair )hile /uite significant
number of respondents# namely# &F out of :-: or +'$F mar0ed them as good and :'
respondents or &, considered them as poor$ Still there are ( respondents or &
considers them as either very poor or excellent$ Therefore# data on these matters indicate
that most respondents have no complaint about those indicators$ 1o)ever# there is still
room for the improvement especially )hen those indicators should be considered at the
level of good or higher excellent!$ The better the level of the opinion the more
respondents satisfy and the higher possibility that 7andung airport )ill be their first
choice to come to Indonesia$
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To find out the position of each group of occupation on the indicators of shops# food and
beverages the information is depicted on the follo)ing table$
Occu/at$on
O/$n$on on 7ho/s> ood> and Be'erages
Ind$catorsTota
& + 9 :
7tudent B && ++ & B (+
E!/o-ee & && &: ( B ((
House=$*e B &+ + B 15
Entre/reneur & ( +, 9 B (0
Others B B B & & %
Tota % (% 1( 1 113
Table $&: the Opinion of Shops# >ood and 7everages by Occupation
Goterom the analysis of correlation it can be concluded that the only variable )hich
correlates significantly )ith the experience )ith the representative of the management of7andung airport is )ith occupation$
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+.(.3 The e:/ected and actua ser'$ce $n Bandung a$r/ort
In the /uestionnaires# the respondents )ere re/uested to give their opinion to the
statement on the expected and actual service in 7andung airport$ The statement concerns
)ith the expectation of the respondent for the service$ >rom each statement therespondent have to circle a number that represents their feeling$ There are : number that
the respondents have to choose# & strongly disagree# + slightly disagree# 9
uncertain# slightly agree# and : strongly agree$
The follo)ing table sho)s the ans)er of the respondents on those three statements$
6e'e o* 7er'$ces
O/$n$on on The 7er'$ces
Tota& + 9 :
E:ceed !- e:/ectat$on - &9 F - & (3
Reasonabe &F ( &, 9 +0
Beo= !- e:/ectat$on & + : - + +0
Tota 1( (% 15 % %5 113
Table $9, the Expected and %ctual Service in 7andung %irport
ata on Table $9, sho) that the opinion of the respondents differs so much$ There are -respondents or ($- strongly disagree and &9 respondents or && disagree that the
services exceed their expectation$ This is the trend )here most respondents did not agree
that the level of services exceeds their expectation$ .hile F or ( cannot decide there are
- respondents or ($- agree and & respondent or less than one percent strongly agree that
the level of services exceeds their expectation$ In other )ords# there are more respondents
)ho consider the level of services is not higher than their expectation compared to those
)ho consider that the level of services does exceed their expectation$
% similar picture is also presented by the ans)er to a /uestion )hether the services is "ust
reasonable$ More respondents do not agree that the level of services is reasonable$ There
are also more respondents consider that the level of the services is belo) their
expectation# namely# 9+ respondents or +F agree that the services are belo) their
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expectation$ %mongst the respondents there are &- persons or &: cannot ma0e any
affirmative decision )hether the services exceed# reasonable or belo) their expectation$
In general# data on Table $&: indicate that most respondents consider that the level of
services is not good enough$
To find out )hether there is any different in the expectation amongst those groups of
occupation# W is used to correlate bet)een the independent variable of occupation and
the three dependent variables of the level of services$ Every dependent variable
exceeded# reasonable# belo) the expectation! has five levels strongly disagree to
strongly agree!$ To do the follo)ing cross tabulation table )as constructed sho)ing the
ans)er of each group of occupation the independent variable! on each scale of
dependent variable$ Table $9& sho)s the result$
OCCUPATION
E:ceed ,-
E:/ectat$on
Reasonabe Beo= ,-
E:/ectat$on
& + 9 : & + 9 : & + 9
7tudent && : ( - &: : - + &, : ( - +
E!/o-ee + : ' &, F : ' && + : ' &, 3
House=$*e : ( + & ( : : + B : ( 9 @
Entre/reneur ' ' : : + &, - - 9 & &, ' : %
Others B & & B B B B & & B B B & & @
Tota %3 % %( %3 1+ ( %3 % %1 3 %3 % %+ %3 1(
Table $9& @elationship bet)een Occupation and the %ctual Services
Goterom the table $& it sho)n that there are five types of visa applicant that has been use
by inbound tourist in 7andung airport$ Those five types of visa are diplomatic visa )ith
total applicant 9+- follo)ing by business visa (-' applicants# visa on arrival :9
applicants# tourist visa )ith &&, applicants and v0s0 )ith 9,&9 applicants$ The overallapplicants from five types of visa are 9(F people$ The highest number of applicant
comes from v0s0 group type of visa$
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%ccording to the immigration personnel in 7andung airport the inbound tourist )ho has
been use 7andung are comes from 9+ countries$ 7elo) here is the table to describe the
countries of origin from the inbound tourists$
Countr- D$/o!at$c8$sa
Bus$ness8$sa
8$sa onArr$'a
Tour$st8$sa
8474
Austr$a - &F &: ,Austra$a &' &F (: &: ,U7A &9 &: F( +, ,Netherands &: F - + ,U4 &, F (9 ( ,)a/an & 9 +: 9 ,er!an- : &+ 9 9 ,,aa-s$a &F, :- , , &$F:'rance && +( , ,7$nga/ore & : & , &(,7=$ss & : , ,Ta$=an 9 + && , ,Tha$and : F : &+ :9Ind$a &- - - &+ ,4orea 9 +, - ,Ch$na &( ++ 9( && ,7/a$n & , , ,Brune$ , , , , ,orocco & , , & ,8$etna! , , , , 9Ne=
eeand
& 9 &9 , ,
Ita- ( & , &7aud$ , , , ,Bangadesh 9 , , , ,Bahra$n , , && , ,Canada & &, + ,7=eden 9 & & , ,Eg-/t , , & , ,
Hungar$an & , , ,Ca!bod$a , , , ,7udan & , , , ,Ph$$//$nes & + , 99Tota 9+- (-' :9 &&, +$,&9
$+ Countries of Origin from Inbound Tourist
Source< 7andung airport# +,,'!
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>rom the table above the total number of countries of origin from inbound tourist that has
been recorded in immigration of 7andung airport )ithin & year are came from thirtyBt)o
countries# )ith different types of visa applications$ The total inbound tourist visitors
)ithin & year through 7andung airport are 9(F9 peoples$ 7elo) here are the
explanations for the inbound tourist according to their visa application$
>igure $+a Countries of Origin and iplomatic 4isa %pplication
The figure above describes the countries of origin and the diplomatic visa of applications$
The total applicants for diplomatic visa are 9+- applicants$ The highest applicants are
come from Malaysia )ith &F, numbers of applicants follo)ing by %ustralia )ith &' of
applicants# India )ith &- of applicants# China )ith &( of applicants# Getherlands )ith &:
of applicants# US% )ith &9 of applicants# >rance )ith && numbers of applicants then U;
)ith &, applicants# the rest of countries the average of the number of applicant is bet)een
'B, number of applicants$
>igure $+b Countries of Origin and 7usiness 4isa %pplication
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>rom the table above it sho)n that the highest number of applicant comes from Malaysia
)ith :-# follo)ing by China )ith ++ numbers of applicant# %ustralia )ith &F applicants#
US% )ith &: number of applicants# Canada )ith & number of applicants# ermany )ith
&+ people then F applicants each for the follo)ing this countries Getherlands# U;# and
Thailand# for the rest countries the number of applicant is bet)een - to , applicants$
>igure $+c Countries of Origin and 4isa on %rrival %pplication
%ccording to the figure above# the total number of inbound visitor )ho are use visa on
arrival are :9$ The highest applicant come from US% )ith the number of applicants are
F(# follo)ing by %ustralia (: applicants# U; )ith (9 applicants then - numbers of
applicants come from Getherlands and India# China )ith 9( number of applicants#ermany )ith 9 number of applicants# 8apan )ith +: applicants# >rance )ith +(
applicants# ;orea )ith +, number of applicants# Tai)an and 7ahrain )ith && numbers of
applicant for each# Ge) Peeland )ith &9 number of applicants# Canada )ith && number
of applicants# for the rest countries the range number of applicants is bet)een B&$
>igure $+d Countries Of Origin %nd Tourist 4isa Of %pplication
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+.+ Ana-s$s *ro! #ua$tat$'e Resut
%ll the data that have been gathered are being analy=ed according to the fre/uency )hich
has been sho)n$ >or the data analysis the statistical pac0age Excel )as used$ The purpose
of this study )as to compare the mean and correlation of service /uality$ >actor analysisand reliability test )ere used to test the opinion of the respondent for service /uality in
7andung airport by using customer experience management CEM! approach$
Custo!er
>rom the analysis that has been done it can be concluded that most of the customers feel
that the level of satisfaction of /uality service provided by 7andung airport is at fair level
and tend to be at belo) their expectation as the customers$ The highest numbers of
customers )ho feel fair )ith the total service /uality come from the student group of
occupation$
,anage!ent o* Bandung a$r/ort
%ccording to the intervie) that has been conducted )ith Mr$.ahyu S 1@ manager! as
the representative person# it can be concluded that the inbound tourist )ho came used the7andung airport as the main entrance# most of them come from %SE%G region# and
Malaysia has been recorded as the country )ith the highest visitors by using 4;S;
application visa$
%lso )hen it comes to provide or adding a ne) product and services# the management
never involve the customers into it$ It means the management still act passively )hen
dealing )ith the customer2s )ants and needs$ 7andung airport also didn2t measure the
customer satisfaction# except )hen there is a complained then they )ill do someevaluation about it$ The management follo)ed the standard procedure set by the
International Organisation for standardi=ation ISO! ',,, series$
>or the facilities# 7andung airport has still troubled )ith the area of the airport because
the area is too small# so it is hard for them to expand necessary or demanded facilities#
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and of course the absence of the necessary or demanded facilities caused that
inconvenience for the passengers$ Especially for the customers )ho )ant to chec0 in#
they still need to )ait outside until the immigration gate is open$
There are some limitation in the uses of IT?IS in 7andung airport$ The Uses of IT?IS isonly at operational airport$ The management didn2t maximi=e the uses of IT?IS to interact
more and understand better the expectation from the customers$ The customers also still
not be able to use maximum the IT?IS as a facility in 7andung airport# because the
facilities that use IT?IS at 7andung airport still minimum# such as the flight information
board and .iB>i$
+. Concus$on
7ased on the analysis from the /uestionnaires the author has found that there is a
correlation bet)een groups of occupation# age and gender )ith the satisfaction level of
service /uality that has been provided by 7andung airport$ The proper plans# the uses of
IT?IS# customer focus still needed to evaluate again$ The implement of IT?IS still too
minimum# it ma0es the interaction )ith the customer still lo)$
Their still has the gap bet)een expectation and management perception of the services
and the customer2s expectation$ The management thought from their side )ithout having
communication )ith the customers )hen delivery their service$ >rom the customer side
the expectation of the product and services is different )ith the services that they are
perceived$
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CHAPTER
ARTEACT "DE6I8ERAB6E
.1 Introduct$on to the Arte*act
The frame)or0 )as developing out by Schmitt +,,9!$ The frame)or0 )as meant to
address the important steps also as a guideline for the industries to implement the
Customer Experience Management CEM!$ % /ualitative study )as focused mainly on
the customer2s experience$ This is# give a clearly picture of the practicality of the
frame)or0$
.% Ho= the Ana-s$s 9as Used To Create Arte*act
7ased on the intervie) )ith the 7andung airport management and the /uestionnaires that
has been distributed to &&F correspondent that has a huge contribution for the author to
create artefact?deliverable# and come up )ith the analysis on ho) the technology by using
CEM frame)or0 can enhance the service /uality in 7andung airport and generate the
customer satisfaction to the service /uality in 7andung airport$
>rom the analysis data above# the author can ma0e a red line on ho) the CEM frame)or0
by using IT?IS strategy can enhance the service /uality in Indonesia Inbound tourism
industry# by follo)ingacilities )ith other airport
>rom the table above# the comparison of the facilities has sho)n that the 7andung airport
still have not a proper plan in capturing the customer expectation$
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HCCT is 0no)n as the lo) cost carrier terminal# for the international airport that the
services and the facilities are good$ The customers can get the information easily about
the flight information$ The HCCT )ebsite is friendly user# )here the customers can easily
access to gather the information that the customers needed$
Online customer cares also has been provided by HCCT to ensure that their services are
met )ith the customer2s expectation$ This online customer cares is another )ay to ma0e a
consistency )ith their customers$ The uses of IT?IS at HCCT are covering to all elements
of IT?IS$ HCCT airport has been involved the customer as their end users$ The HCCT
)ebsite also provides the flight information# location# facilities etc$
The HCCT airport is specially designed for the passengers )ho of Malaysia2s first LnoB
frills2 airlines# %irasia$ They declare that the airport is lo) cost# but HCCT 0eep onimproved their facilities to ensure that the customers and the terminal users are pleasant$
The 7andung airport has a similar function )ith HCCT especially for international flight$
7andung airport is special for %irasia$ In providing the services such as facilities!# the
7andung airport management should understand better the customers2 needs$ The all
elements of IT?IS should be implemented in 7andung airport$ In identify the target
customers# the 7andung airport management can be utilised the uses of IT?IS by using eB
survey in the 7andung airport )ebsite$ 1o)ever this current moment# the 7andungairport still not consistence in interact )ith their customers$
. Concus$on
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>rom the analysis data and literature revie) also the testing of the frame)or0 that has
been done# there is the fact that CEM can be able to enhance service /uality to achieve
customer satisfaction through IT?IS$ CEM as can understand better ho) deliver a service
/uality in 7andung airport$ The proposed frame)or0 is possible to apply in 7andung
airport according to the situation$
The IT?IS in airport service has an important role in supporting the proposed frame)or0#
the IT?IS have to be use either for Manager or operation system also for the customers in
7andung airport$ The IT?IS is used to ensure the management of 7andung airport can
provide the services according to the customer2s expectation# to achieve customer
satisfaction
CHAPTER
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CONC6U7ION AND RECO,,ENDATION
.1 Introduct$on
%ll ob"ectives of the research outlined in chapter one have been achieved as datacollected through /uestionnaires and intervie)ed are analy=ed in chapter four$ The
follo)ing sections of chapter six )ill evaluate ho) the customer experience management
CEM! is able to enhance the service /uality through IT?IS in 7andung airport by ta0en
the perceptions from inbound tourist that used 7andung airport as their first entrance to
Indonesia$ Mean)hile# suggestion on some areas for further research also has been
identified$
.% Concus$on Reat$ng to the Research #uest$on " Research Probe!
The data analysis has sho)n that most of the inbound tourists thin0 that the service that
has been provided by 7andung airport is belo) their expectation$
%ccording to %A analysis of service /uality# the expectation of services from the
customers comes from three different minds$ The first is based on )ordBofBmouth
communication* the customer )ill get the information from the brand or from other
people# the second is based on personal needs* every customer has different perceptionabout service according to their personal needs$ There are no customers )ho have the
same needs$ The last is according to the past experience* the customers )ill have a setup
of mind for the services that they are going to perceive based on their experience$
In perceived the service# the customer must perceive the service /uality based on /uality
dimension# )hich is tangibles# reliability# responsiveness# competence# access#
communication# courtesy# credibility# security# understanding?0no)ing the customer and
tangible Gational @esearch Council!$
>rom the explanation above# can determine that the customer2s especially inbound tourist
in 7andung airport in perceived the services some services are not matching )ith their
expectation because there are gapped bet)een the customer expectations and perceived
the services$ To minimi=e the gap bet)een the customer expectation and# provided the
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service the management of 7andung airport should actively ma0e an interaction )ith the
customer to understand better )hat are the expectation from the customers$
%nd according to the management side# they already provide the services according to the
service standards by follo)ing ISO ',,, series$ In ISO ',,, series is to improve the )ayit operates# increasing mar0et share# driving do)n cost# managing ris0 more effectively or
improving customer satisfaction$ In ISO ',,, series in providing the customer
satisfaction is only mentioned as a general$ >or /uality improvement in 7andung
management side it is very good if it is used ISO ',,, series as a frame)or0# but in
providing the customer )ants ISO ',,, series only tal0 the customers it2s in general
term# not specific to )hat industry$ In ISO ',,, series treat the delivery of services li0e
any other product$ Every customer for every industry are different# and if it is only
follo)ing to ISO ',,, series the satisfaction from the customer )ouldn2t be achieved$
%ccording to the explanation above there are some gap bet)een customers and the
management of 7andung airport should understand the customer expectation and not only
follo) to ISO ',,, series in ma0ing decision$
7elo) here is the figure that sho)n ho) CEM frame)or0 adopted from Schmitt# +,,9!
by using IT?IS can enhance the service /uality in 7andung airport$
Enhancing
>igure ($, relationships bet)een CEM and IT?IS to enhance SE@4QU%H
%ccording to the figure above the CEM steps adopted from Schmitt# +,,9! is helping to
7andung airport to be more focus on the customer2s expectation$ 7y using IT?IS in CEM
frame)or0 it has believed that can enhance the service /uality$ >rom the : step that
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Schmitt +,,9! explained# the first step )hich is analy=ing the experiential )orld from
customers has to become the foundation for 7andung airport$ This first steps is helping
the Management to understand better )hat 0ind of type their customers$ In hence#
7andung airport can be more focus in providing the goods and services according to the
customer2s type and also the customer2s expectation$
The uses of IT?IS in CEM frame)or0 it is helped the management of 7andung airport to
provide the service according to the expectation of the customers$
.( Reco!!endat$on and suggest$ons
7ased on the finding research# this dissertation determine )ith recommendation to
research and explore the follo)ing areas in order to further gain insight customer
experience from Indonesia inbound tourist industry$
Bus$ness Or$entat$on as the Bus$ness 7trateg-
%ccording to Collin Sho) +,,:!# there are four level of organi=ation orientation )hen
deliberately component of customer2s experience$
%t the top level# the Gaive to Gatural ModeZ# the organi=ation orientation in this level is
on themselves rather than the customer2s experience$ The company is reacting reactive to
the customers2 demands$ The companies believe the products# processes# or their services
are more important than the customers$
The other reason )hy the organi=ation in this level becauserom the table above# the CEM frame)or0 adopted from Schmitt# +,,:! can guide
7andung airport to deliver a service /uality in 7andung airport$ The CEM step re/uired
to use IT?IS$ The uses of IT?IS is not only computer but 1uman @esource also part of
IT?IS strategy %lter# &''(!$ Customer cares department from the 7andung airportmanagement are in charged to gather the information about the customers EBsurvey#
phone# etc!$ Staff flexibility is under the 1uman @esources department$ The uses of
Multimedia to attract the customers are Mar0eting department )ho are in charge for it$
%s the part of IT?IS the human resource is needed to structure the customer interface as
the steps of CEM$
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These days IT?IS is )idely used in daily life$ IT?IS is not only for personal life but also
for business process$ 1ere the uses of IT?IS strategy can enhance the operation system
support in 7andung airport$
7elo) here is the blue print of the process from IT?IS strategyigure ($& 7lue print of IT?IS strategy
The IT?IS process above are needed in 7andung airport to enhance the service of /uality$
The first process is gathered the information about the customers$ The second processed
is integrating and processing# after capturing the information by using eBsurvey# phone all
the data are being processed to 0no) )hich one is the crucial things also the expectation
from the customers$ The third process is delivery the product and services through IT?IS$
The result could be a )ebsite* logo# ne) product and the staff flexibility also become the
part of IT?IS$
>rom the three process above# the fundamental carry out IT?IS is capturing the )ants and
needs from the customers also from organisation itself$ In capturing?formulating the
)ants and needs# it must lead by the needs of the organisation itself not by the availability
of the technology$ >rom there# it )ill help the Management of the 7andung airport too
more understand in deliver the product and services according to their type of the
customers according to the needs from the company itself$
.+ 6$!$tat$on
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There are fe) limitations encountered during the approach evaluation process and that
)as identifiedrom the Customer Experience Management# to achieve a better /uality service the
Indonesia tourism industry can apply the strategies that guide to provide experiential
value for customers in order to achieve customer satisfaction Schmitt# +,,9!$ The
benefit of using customer experience management CEM! is the Indonesia tourism
industries 0no)s better and 0no) ho) to measure the customer need and delivery of the
service /uality based on customer value# and at the end the industry have the capability
to provide an experiential value for their customer in order to achieve customer
satisfaction$
(.0 Pro&ect A$!s and Ob&ect$'es
Overall! %im< The thesis )ill focus on 7andung airport as element of ho) Customer
Experience Management CEM! can be applied in relation to inbound tourism industry$
Ob"ectivesive Steps of the CEM >rame .or0 9&
1. 6$terature Re'$e=
1.0 O'er'$e=
The customer is at the heart for every business in any industry# it is then )ithout
customers the industry does not have the capability to gro)$ .hen the customer as a
central is not involved and not supporting to the business# there is no interaction bet)een
industry and customers$ Therefore# )hen the customers do a transaction for the needs
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and )ants from the industry# the business should meet the needs of the customer in terms
of goods and services$
Every industry has its o)n contribution to the economic gro)th of its country$ Tourism
industry is one of the industries$ >or several countries# tourism industry plays a moreimportant role in their economy than the others as the tourism industry is the main
income of those countries$ >or Indonesia# tourism industry has also become the ma"or
generating income and contributed significantly to Indonesian economy$
%irport services are one important element of tourism industry$ Thus# to measure the
satisfaction of the customers of the services is very significant in )hich it )ill determine
the )ay to improve the tourism industry$ 7andung2s airport is one of the airports in
Indonesia )here domestic and international tourists come and go to 7andung andsurrounding areas$ It becomes the main gate of .est 8ava province and to measure the
satisfaction of the customer to the /uality of service delivered by 7andung airport is
valuable$
JCustomer experience management CEM! is "the process of strategically managing a
customer#s entire experience with a product or a company"$ @elationship mar0eting
focuses on establishing and building a longBterm relationship bet)een a company and a
customer$ Several approaches have been exposing includes customer experiencemanagement# customer relationship management# loyalty programs# and database
mar0eting .hite Aaper!$ The main point of the customer experience management is ho)
the customer engage )ith the brand )ithin industry and at )hich the industry can ma0e
of bra0e the relationship$ The experience from the customer starts )hen they start to
interact )ith the industry# such as )hen the customer decides to use one of the companies
in the industry# come to the company# choose the product# use it and feel it and en"oy it#
that is the experience of the customer$
>rom the definition of Customer Experience Management CEM! above it clearly
mentions ho) to manage the customer2s )ants and need based on the customers
experience and ho) the company should engage )ith their products$ 7y minimi=ing the
gap of the need bet)een customers )ith employees it )ill help to understand and
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translate the customer2s )ants and needs into a products and services$ 1o) to control and
deliver the products and services that can matches )ith the customer experience$
%.0. 6ITERATURE RE8IE9 OB)ECTI8E7
The ob"ectives of the present study arerom the definition above# Customer Experience Management has the capability to help
the company to understand better the customer )ants and needs$ 7y using CustomerExperience Management the company does not only record transaction but also building
the relation )ith customers Schmitt# +,,9!$ 7y building the relationship )ith the
customer it can overcome gap bet)een customers2 needs and services the company
provides$ That definition also mentions an integrative approach to customer# loo0ing
internally as )ell externally means that it does not only ma0e an approach to the
customers from one side but the company also sees the needs the from both of sides#
namely# the customer point of vie) and put themself in the customers2 shoes
Similar to Schmitt +,,9!# ;alyani and Araveen A +,,(! defined 3Customer Experience
Management as the methodology that tries to overcome the gap between the company
and the customer$$ That definition sho)s that Customer Experience Management CEM!
tries to minimi=e the gap bet)een the customer and companies by understanding the
value better of products and services through the customers point of vie)$ 7eside to
understand the customer point of vie)# the management of the companies has also to
provide the )ants and needs of their employees$ The employees are the main frontier inthe industries* because it is them the customers ma0e the first interaction before they
purchase the goods and services$
8oe >letcher +,,F! presents 3Customer Experience Management is a holistic approach to
managing the experiences of your customer )ith your company cutting across functions
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and silos# to drive customer satisfaction# loyalty and profitability at all levels of the
organi=ation$ The concept can be simple K consistently provide positive# valuable
experience to your customers and they )ill return loyally to you repeatedlyJand by no)
you 0no) that leads to increased profitability$ Implementation is the hard part K a
complexity that continually challenges most organi=ations today6$
The company should provide a valuable experience of goods and service that can attract
the customers$ The most challenging matter here is ho) to provide the experience goods
and services because every customers have a different point of vie) about the experience
of goods and services$ %lso from the experience that companies provide it becomes the
main role )hen the customers satisfied# and if the customers satisfied it means the
customers needs match )ith the products and services and they )ill purchase repeatedly
)hich can change of the status of the customers from satisfaction to loyalty of the
product$
+.0 INDONE7IA TOURI7, INDU7TR
In every part of the )orld# the tourism industry has al)ays become a centre of attraction$
@ecently many countries have promoted their tourism industries# because the tourism
industry become the top earner for the some of countries and one of those countries is
Indonesia$
Indonesia is the largest and greatest archipelago in the )orld# )ith more than &F#,,,
islands$ Every island# every province# every city has its o)n distinctive culture$ >ive
main islands and 9, smaller islands are home to the ma"ority of the population$ The five
main islands are Sumatra F9#(O( s/$0m!# ;alimantan &:9'# ,, s/$0m!# Sula)esi
&-'#+&( s/$ 0m!# Irian 8aya +'-& s/$ 0m!# and last but not least 8ava &9+#&-F
s/$0m!# home to F, percent of the countryDs population$ Indonesia shares Irian 8aya )ith
Aapua Ge) uinea and t)o thirds of the island of ;alimantan )ith Malaysia and 7orneo$
Indonesia# +,,-!
On +(th ecember +,,F# the Ministry of Culture and Tourism MCT! of Indonesia
launched 4isit Indonesia 5ear +,,- targeted the number of tourist F million people$
Throughout +,,-# the country staged &,, internationalBscale events and cultural festivals#
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)ith the visit Indonesia campaign being timed to coincide )ith the .orld Culture
>orum +,,- Embassy of Indonesia Otta)a!$
7efore Indonesia launched the 4isit Indonesia 5ear +,,-# the tourism industry in
Indonesia )as declined$ This happened because there )as a change of regime inIndonesia )hich leads to the decentrali=ation of political po)er from 8a0arta to the
regions and then those regions received the responsibility to develop their o)n industrial
policies$ Go) the tourism is not a matter of Central overnment as it )as before but it
has become an important role in every Arovince in Indonesia$ Each Arovince has to )or0
together )ith the central government to develop and identify )hat 0ind of natural beauty
they have and they can promote to catch the tourist attraction$
+.1 INBOUND TOURI7, AT BANDUN
%ccording to %ustralia Tourism +,,-! inbound tourism covers all international tourist
traffic entering a country$ >urthermore the same document %ustralia Tourism# +,,-!
mentions there are many benefits to export tourism includingeature# @eliability# Conformance# urability# Serviceability#
%esthetic# and Aersonal Quality$ Cronin and Taylor &''+!* Chaffey et al$+,,9! )as
disagree )ith the dimension of service /uality from arvin# Cronin and Taylor mention
there are five dimension of service /uality < reliability# responsiveness# assurance#
tangible and empathy$
>rom the arguments above it comes )ith the conclusion that customer satisfaction can be
identified used the SE@4QU%H that helps to measure customer satisfaction met )ith the
expectation of the customers$
.0 AD8ANTAE7 o* CU7TO,ER EJPERIENCE ,ANAE,ENT ;CE,letcher# +,,F!$ If Indonesia tourism industry )ant to achieve the customer
satisfaction# the industry have to concern on ho) to elaborate the mar0eting# customer
service also have to 0no) ho) the organi=ation managing the customer experience byfollo) the 0ey element of Customer Experience Management CEM!$
CE, $s Both Ana-t$ca and creat$'e. The CEM frame)or0 includes both analytical
and creative concept and tools$ This 0ind of combination is highly unusual$ The analytical
is need for structuring# analy=ing# and /uantifying the business and for catching
customer2s attention and satisfying their )ants and needs$ The CEM frame)or0 meshes
the )orlds of the analytical and the creative$ It is accurate# internally consistent# and )ell
structured$ The frame)or0 is creative in its use of novel concept# uni/ue tools# andunusual research techni/ues for gaining customer insight$ Schmitt# +,,9!
CE, $s Both 7trateg- and I!/e!entat$on. Most of customer frame)or0s are
concerned either )ith strategy or )ith implementation# but not )ith CEM$ CEM include
both strategy and implementation in a uniform frame)or0$ Strategic considerations are at
the core of the first t)o steps< analy=ing the experiential )orld of the customer and
building the experiential platform$ Gext three implementation steps focus on the brand
experience# the customer interface# and continuous innovation Schmitt# +,,9!$
CE,s ocus $s e:terna and $nterna. The foremost concern of CEM is the external
customer! experience$ CEM frame)or0 is analy=ed both strategy and consumers and
7+7 customer and design strategy and implementation$ 1o)ever# CEM also concerned
)ith the 3internal experience6 the employee experience!$ .hy CEM also concerned )ith
employee because the employee feel and the experience of the company and its initiatives
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is critical for delivering the right brand experience through communication# enhancing
the customer interface face to face and via the call centre!# and encouraging continuous
innovation initiative$ Schmitt# +,,9!
7y using CEM frame)or0 and its methodologies# the organi=ation especially the
Indonesia tourism industry can integrate the experience across various touch points to
lin0 tangible outcomes measure and help to manage both the external customer and
internal employees! customer experience$
.0 HO9 I7"IT A7 A 7TRATE CAN DE6I8ER CU7TO,ER EJPERIENCE
,ANAE,ENT ;CE,rom )hat Hoveloc0 and .right said the services that 7andung airport provides is should
give a benefit for the customers or the user of the services$ The 7andung airport isinade/uate in providing the services based on the customers expectation$ 7andung airport
still have to do a lot of home )or0 by cooperate )ith the customers to listen )hat the
customer )ants$ The management 7andung airport on this current moment still acts
passively to the customer2s expectation$ 7andung airport in order to deliver a service
/uality need to involve the customers# so the 7andung airport have the capability to
improve the services based on input from the customers$
>rom the services that 7andung airport offered to the users especially for inbound tourist#
the services have to meet the customer2s expectation# the customers demand and the
customers need$ The services that 7andung airport have to provides at least on the level
ade/uate services$ 3J-de3uate service is the minimum level of service that a customer
will accept without being dissatisfied6 Hoveloc0 and .right# +,,+!
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Same goes to the facilities that 7andung airport provide also have to meet the customer2s
expectation and customer2s demand$ Until no)# the facilities that 7andung airport
provides is still far a)ay from the customer2s expectation# such as for )aiting room is too
small# restroom doesn2t have many and it can caused a long /ueue that can affect to the
flight schedules$ Entertainment at 7andung airport it is only ta0en from the television and
for the internet access also doesn2t have so people )ho )ere )aiting for the flight doesn2t
have other option except )atching the television$ Money changer at 7andung airport is
still using traditional )ay# they did not used technology at all# as )e 0no) money
changer for the inbound tourist is very important because not all the tourist already
prepare the local currency$ The facilities at 7andung airport is too minimum and far for
convenience$ 7andung airport as the international airport also the public infrastructure
have to improve their facilities in order to meet the customer2s expectation$
7eside the facilities the man po)er also have the im