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Archives of Business Research – Vol. 9, No. 12

Publication Date: December 25, 2021

DOI:10.14738/abr.912.11455. Noviaty, E., Rahbini, W., Sitinjak, T., & Ganyang, M. T. (2021). Factors Affecting Consumer Loyalty in the Dive Tourism Industry in

Indonesia. Archives of Business Research, 9(12). 273-285.

Services for Science and Education – United Kingdom

Factors Affecting Consumer Loyalty in the Dive Tourism Industry

in Indonesia

Evi Noviaty

Permanent Lecturrer of Faculty of Economy

M. Husni Thamrin University, Jakarta

Widarto Rahbini

Permanent Lecturer Of Pancasila University, Jakaarta

Tony Sitinjak

Head Of Master Management Of Kwik Kian Gie

School Of Business, Jakarta

Machmed Tun Ganyang

Permanent Lecturer Of Master Managemet Of STIE PBM

Jalan Dewi Sartika Kav. 3EF, Jakarta

ABSTRACT

Diving Industry in Indonesia has huge potential needs to be managed properly in

order to carrying out the concept of green tourism, but it has not been supported by

the optimal performance of dive centers. That is marked by the low level of loyalty

of diving tourism consumers. The purpose of this research is to analyze the effect of

Green Marketing and Service Quality to Customer Satisfaction and Customer

Loyalty of Diving Tourism Customer. Research Method used in this research is

descriptive analysis with research design used is explanatory design. The research

object is 12 (twelve) dive centers is spread on Three provinces in Indonesia.

Analysis unit are experience and certified divers with total 200 respondents. Each

sample from dive center is chosen proportionally. Technic Sampling is judgment

sampling. The tool analysis used is statistic descriptive supported by SPSS software

and statistic inferential supported by software of Lisrel Version 8,80. The research

result described that practiced of green marketing, service quality have positif

impact on Customer satisfantion and Customer loyalty of divers although there are

still indicators that are indicating low impact. The results of the causality study

state that : a) Green marketing has no significant affect on customer loyalty, b)

Green marketing has significant affect on satisfaction, c) The service quality has no

significant affect on customer satisfaction,d) The quality of service has no

significant affect on customer loyalty, e) The customer satisfaction has significant

affect on customer loyalty.

Keyword: Green Marketing, Service Quality, Satisfaction, Loyalty, Dive Tourism,Indonesia

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Archives of Business Research (ABR) Vol. 9, Issue 12, December-2021

Services for Science and Education – United Kingdom

INTRODUCTION

Background

Indonesia is one of such countries with the longest coastline in the world. The length of the

coast reaches 95,181 km which extends across 17,504 islands (KKP, 2011). It is not surprising

that the biodiversity of fish resources in Indonesian waters is very high. It is estimated that

there are 2,000 species of fish and 700 species of a total of 2,000 species of sponges that live in

the coral reef ecosystems of Southeast Asia. More than one third of the species of whales and

dolphins, as well as six of the seven types of turtles that live in the world can be found in

Indonesian marine waters. This exoticism places of Indonesia as one of the world's best dive

sites. This is a great potential to attract tourists in developing Indonesian marine ecotourism,

especially diving tourism.

The development of Indonesia's dive tourism industry has been significantly developed in

recent years. With 736 points of dive locations in 30 provinces spread from Sabang to Merauke

(POSSI, 2016) it is a tremendous potential to attract foreign tourists. Indonesia has dive sites

that have their own natural beauty, such as: Weh Island (Aceh), Bintan Island (Riau), Thousand

Islands (DKI Jakarta), Derawan (East Kalimantan), Bunaken (North Sulawesi), Bali, Ambon,

Lasolo, Bukori, and Wakatobi Islands (Southeast Sulawesi), and of course there are many more.

The potential for diving tourism has attracted the interest of the Indonesian people to enjoy the

beauty of the underwater by taking a diving course at the Dive Centers which opens a diving

course with an alliance with several dive certification organizations, both domestic diving

organizations such as POSSI, and overseas diving organizations such as PADI, SSI, NAUI, RAID

etc. In 2018, it was noted that POSSI had issued 8,900 diving certificates. (POSSI, 2018).

With the increasing public interest in diving tourism, it is necessary to make strong efforts from

the dive tourism business actors and all stakeholders to improve service quality.

The purpose of this study was to determine and analyze the effect of Green Marketing and

Service Quality on Customer Satisfaction through Customer Loyalty of Diving Tourism in

Indonesia. The four research variables built to form a conceptual research model. This research

model is not a model in the form of model replication that refers to previous studies, but is built

from phenomena in the field so that it is one of the characteristics (novelty) of this research.

Several research results support and reject the existence of relationships between variables are

as follow: 1). The Effect of Green Marketing on Consumer Loyalty,some of the results of

previous research which stated that Green Marketing has a positive effect on Consumer Loyalty,

including from Abid and Tehreem (2015); Narges, Taleghani and Bahareh (2014); Syeda (2011)

and Nehamahajan (2016). However, Babita's (2013) research results state the opposite, namely

that there is no significant effect of Green Marketing on Consumer Loyalty; 2) The Effect of

Green Marketing on Customer Satisfaction. Previous research results that support that Green

Marketing on Customer Satisfaction include Rashad, Yazdanifard and Igbazua (2011), Ismail, P.

Chinna, and Bala Krishna, (2017); Reza, Mojtaba Salehi, and Roozbeh Hojabri (2012). However,

the research results of Aibek, Doszhanov and Zainal (2015) state the opposite, namely that

there is no significant effect of Green Marketing on Consumer Satisfaction; 4) The Effect of

Service Quality on Customer Satisfaction. The results of previous studies which state that

Service Quality affects Customer Satisfaction have been studied, among others, by Sukmadi,

Heru Riyadi, Ananta Budhi and Anwari Masatip (2014); Merisavo (2008); Soheila, Fathian and

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Noviaty, E., Rahbini, W., Sitinjak, T., & Ganyang, M. T. (2021). Factors Affecting Consumer Loyalty in the Dive Tourism Industry in Indonesia. Archives

of Business Research, 9(12). 273-285.

URL: http://dx.doi.org/10.14738/abr.912.11455

Gholamian (2011), and Lubica (2014). However, the results of research by Yasir, Imran Shafiq,

Muhammad S. Din, and Khaliq Ur Rehman, (2013) state that service quality has no effect on

consumer satisfaction; 5). Service Quality affects Customer Loyalty. The results of previous

research which states that Service Quality affects Consumer Loyalty have been studied, among

others, by Zahir Osman and Ilham Sentosa (2013), Huei-Huang and Shih-Chih Chen (2014),

Ramzi M. Alrousan and Ismaiel M. Abuamoud (2013) and Marvelouso and Agatha (2015). While

the results of research by Azam, Alireza and Abu (2011) state that service quality has no effect

on consumer loyalty.

LITERATURE REVIEW

Saarinen (2006) formulates that green marketing is a development that meets the needs of the

present without sacrificing the ability of future generations to meet their own needs.

Meanwhile, according to Polonsky and Ottman, J. (1998), green marketing is all activities

designed to produce and facilitate exchanges intended to meet human needs or desires, so that

the satisfaction of these needs and wants occurs, with minimal adverse impact on the natural

environment. Even though companies have implemented green marketing programs, there are

still potential problems that need to be addressed. One of the main problems is that companies

using green marketing must ensure that their activities do not mislead consumers or the

industry, and do not violate any relevant laws or regulations. From some understanding from

experts and adapted to this research, green marketing is the marketing of products or services

that prioritize environmental friendliness in order to meet community needs in a sustainable

manner.

Like conventional marketing, Green Marketing in service businesses must place the marketing

mix in an innovative way with due regard to environmental aspects.

According to Unruh and Ettenson (2010), the dimensions of Green Marketing in service

businesses are as follows: a. Product. Entrepreneurs must strive to produce goods and services

that are environmentally responsible, have a smaller negative impact on the environment than

competitors. Products made using environmentally friendly raw materials, such as those from

recycling, or made from environmentally friendly raw materials. The production process uses

an environmentally friendly way. The resulting products can be recycled, including the

packaging used, have clear quality standards such as halal certificates. b. Price. Price is an

important element in the marketing mix. Most customers are prepared to pay a premium if

there is a perceived value of the additional product. This value can enhance performance,

function, design, visual appeal or taste. Environmental benefits are usually an added bonus but

will often be the determining factor between products of the same value and quality. c. Location.

The choice of where and when to make a product has a significant impact on interested

customers. Marketers who want to successfully introduce their environmentally friendly

products position them widely in the market so they don't just attract a niche market. The

location must also match the image that the company wants to project. Location should

differentiate the company from its competitors.d. Promotion. Promoting products and services

for the target market defined by the company can be done with a mix of promotions, such as:

paid advertising, public relations, sales promotion, direct marketing and on-site promotion.

Smart green marketing will be able to strengthen environmental credibility by using

sustainable marketing and communication tools and practices.e. Demographics. Consumer