thesis on cem

8/13/2019 Thesis on CEM

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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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IT?IS Service Quality

CEM


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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

thesis on cem

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