Journal of Marketing and Business Research

THE EFFECT OF CORPORATE IMAGE, LOCATION, PRICE AND SERVICE

QUALITY ON CUSTOMER SATISFACTION OF J&T EXPRESS DELIVERY
SERVICES

Didi Handoyo
University of Mayjen Sungkono Mojokerto
Email: [email protected]

ABSTRACT
The existence of delivery service providers has a strategic role to improve the
performance of the flow of goods from one region to another. The main role of the delivery
service provider is as a means of transportation of goods from the place of origin of
delivery to the destination. The role as a means of transportation of goods includes
services in providing access to transportation of goods both within a short and long
distances (outside the city). The quality of the delivery service provided is closely related
to the satisfaction felt by the customer. The better the service quality delivery of goods,
the higher the satisfaction felt by customers. The high level of satisfaction felt by
customers will encourage customers to establish strong bonds with the company. This
study aims to determine the effect of corporate image, location, price and service quality
on customer satisfaction of J&T Express delivery services in Mojokerto. The population in
this study are customers who use J&T Express services in Mojokerto with a sample of 100
respondents. Sampling using non-probability sampling technique. Data collection
techniques with questionnaires. Data analysis using multiple linear regression analysis
technique. The results of the analysis it was found that the corporate image variable has
a positive and significant effect on customer satisfaction of J&T Express Delivery Services
in Mojokerto. The location variable has a positive and significant effect on on customer
satisfaction. The price variable has a positive and significant impact on customer
satisfaction. The service quality variable has a positive and significant effect on customer
satisfaction. The variables of corporate image, location, price, and service quality
simultaneously have a significant effect on customer satisfaction of J&T Express Delivery
Services in Mojokerto.
Keywords: corporate image, location, price, service quality, consumer satisfaction.

.Handoyo, D. 2021. The Effect of Corporate Image, Location, Price and Service Quality on Customer Satisfaction of J&T 25
Express Delivery Services, Journal of Marketing and Business Research, 1(1), 25-38.
Journal of Marketing and Business Research

INTRODUCTION
In the current modern era, the service sector has experienced a very rapid increase
compared to the previous decade. Developments in the service sector can be seen from
the increasing consumer demand for various industries in the service sector. The
existence of courier service providers is able to support the needs of business people
because they can send goods to customers both near the business location and outside
the corporate's operational area, so as to expand market coverage which will
automatically increase the corporate's profits.
One corporate that provides goods or courier services is PT. Global Jet Express or can be
called J&T Express. PT. Global Jet Express was established on August 20, 2015. The
presence of J&T Express as a new corporate in Indonesia has been committed to serving
the needs of the public. J&T Express is ready to serve Indonesia for fast, convenient and
reliable delivery services. Technology-based innovation is the priority. Then, J&T Express
provides premium services at low prices with premium quality.
The development of a corporate certainly affects the image of the corporate itself. The
image itself is one of the most important assets of a corporate or organization. The image
itself is one of the most important assets of a corporate or organization. If the corporate's
image is good, customers will judge that the facilities and quality provided are very good.
Developing a strong image requires creativity and hard work. Images cannot be implanted
in the human mind overnight or disseminated through the mass media. Instead, the image
must be conveyed through every available means of communication and disseminated
continuously. To succeed in obtaining and retaining consumers, companies must make
every effort to display their products or services by having a positive brand image in the
eyes of consumers. To create a positive image for the corporate, J&T Express must have
open communication. This is so that J&T Express is able to win the competition with
similar companies.
Companies engaged in services must also be smart in choosing a location as a place for
the corporate to carry out all its activities, because a strategic and convenient location will
be more profitable for the corporate. Currently, J&T Express already has 1,025 branches
spread throughout Indonesia. The spread of J&T Express counters throughout Indonesia
is different from other freight forwarding services. If it is common in one sub-district, you
can find 1 or 2 counters with a franchise system, then J&T Express focuses more on 1
counter for one sub-district. J&T Express uses a centralized system for distribution and
receipt of packages. The place is known as the Drop Point. The function of the drop point
itself is clear as a liaison both for receiving packages from the sender, collecting packages
from couriers and simultaneously delivering packages. With the one counter system, one
J&T Express courier is able to reach all parts of Indonesia from Sabang to Merauke without
any intermediaries.

26 . Didi Handoyo
The Effect of Corporate Image, Location, Price and Service Quality on Customer Satisfaction of J&T Express
Delivery Services

Price is one important factor, because price can be the main reason customers choose a
service or product. Price is an important part; price decisions will determine the success
or failure of the corporate. Price is also one of the determinants of the success of a
corporate because the price determines how much the corporate profits from selling its
products in the form of goods or services. Setting a price too high will cause sales to
decline, but if the price is too low, it will reduce corporate profits. Therefore, the corporate
must be able to set the price of its products properly and appropriately so that consumers
are interested and willing to buy the products offered so that the corporate can benefit.
The existence of a price that is comparable to the services provided and a good corporate
image of course also affect the decision to use J&T Express expedition services. The price
offered by J&T Express is very tilted. Even though the prices are low, the services provided
by J&T Express are still the best. In other words, low prices do not reduce the quality of
services provided. After the consumer decides to use the J&T Express expedition service,
a statement will arise that the consumer is satisfied or dissatisfied with using the service.
Another factor that has a role in influencing customer satisfaction in using services is the
quality of service provided by the corporate. Companies must be able to provide
satisfaction to users of delivery services by providing the best service, with good service,
service users will feel satisfied with the services provided. An overall evaluation of a
particular service corporate resulting from comparing the corporate's performance with
customers' general expectations of how companies in that industry should perform
services. The services offered by J&T Express include delivery within the city, between
cities, between provinces and serving various customers, especially in the field of e-
commerce.
Customer satisfaction is one of the keys to the success of a business. This is because by
satisfying customers, the corporate can increase revenue and get a wider market share.
Customers are satisfied when their expectations are met and happy or happy when their
expectations are exceeded. Satisfied customers are loyal longer, buy more, are less price
sensitive and leave positive comments about the corporate. In order to provide
satisfaction to customers, J&T Express provides several services and conveniences. After
customers are satisfied because of the services and convenience provided by J&T Express,
it will indirectly foster loyalty to J&T Express. Loyal customers are people who make
repeat purchases of products or services on a regular basis, buy between product or
service lines, refer others and show immunity to pulls from other companies. By
improving the quality of service, it is expected that consumers will feel satisfied and
consumer loyalty will be achieved by itself. Customer loyalty is created through customer
satisfaction with the products consumed, where customers feel their expectations are
being met, thus leading to customer loyalty.

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Journal of Marketing and Business Research

Based on this description, the purpose of this study is to find out whether the corporate
image, location, price, and service quality have a significant partial and simultaneous
effect on customer satisfaction of J&T Express delivery services in Mojokerto.

LITERATURE REVIEW
The definition of corporate image according to Kotler and Keller (2016) is a set of beliefs,
ideas, and impressions that a person has of an object. According to Gregory and Wiechman
(2011) corporate image is a combination of impacts on observers from all verbal and
visual components of the company, whether planned or not or from other external
influences. According to Kotler and Keller (2016), complete information about corporate
image includes the following four elements. (1) personality as a whole characteristic that
is understood by the target public such as a trustworthy company, a company that has
social responsibility; (2) reputation as something that has been done by the company and
is believed by the target public based on their own experience and those of other parties,
such as transaction security performance; (3) values on how management cares about
customers, employees who are quick to respond to customer requests and complaints;
(4) corporate identity is the components that facilitate the introduction of the target
public to the company such as logos, colors, and slogans.
The selection and determination of the location is the science of investigating the spatial
order of an economic activity. The selection of a strategic and appropriate business
location will determine the success of a business in the future. The location of the business
is the main thing to consider. Strategic location is one of the important factors and greatly
determines the success of a business. Business location is a long-term strategy and asset
that has an impact on the success of a business and its determination must be right
(Darmawan, 2010). Putra et al. (2018) location is a cost and revenue driver, so location
often has the power to make a company's business strategy. Strategic location aims to
maximize the benefits of the company's location. According to Heizer and Render (2015),
location is a cost and revenue driver, so location often has the power to make a company's
business strategy. Strategic location aims to maximize the benefits of location for the
company. According to Gunawan et al. (2019), location indicators are the availability of
parking space, wide enough space and coverage, strategic location, and through many
means of transportation.
Price is the most important unit. This is because the price is an exchange rate of a product
or service expressed in monetary units. In addition, price is one of the determinants of the
company's success in running its business. A successful company is judged by how much
the company can benefit from the amount of price it determines in selling its products or
services.

28 . Didi Handoyo
The Effect of Corporate Image, Location, Price and Service Quality on Customer Satisfaction of J&T Express
Delivery Services

According to Kotler and Armstrong (2016), price is the amount of money spent for a
product or service, or the amount of value exchanged by consumers for benefits or
ownership or use of a product or service. According to Kotler and Armstrong (2016) in
the price variable there are several elements of the main activity of prices which include
price levels, discounts, rebates and payment periods and credit terms.
According to Mahmoud (2015) service quality has been defined as the overall evaluation
carried out by customer service. An overall evaluation of a particular service company
resulting from comparing the company's performance with customers' general
expectations of how companies in that industry should perform services. Service quality
is the quality of activities offered by producers or sellers that occurs as a result of
interactions between producers or sellers and consumers (Devi Juwaheer, 2011). Kotler
and Keller (2016), service quality is overall characteristics of a product, goods or services
that affect the its ability to meet the client's stated needs and desires or not stated.
indicators of service quality are (1) tangibles; (2) reliability; (3) responsiveness; (4)
assurance; (5) empathy. According to Pawar and Sawant (2015) Service quality has been
defined as the overall assessment of service by customers. Service quality is a measure of
the service delivered and the service expected which consists of five measures, namely
reliability, responsiveness, empathy, assurance and tangible (Yanti and Yuliana, 2018).
According to Lovelock and Jochen (2011), customer satisfaction is an attitude that is
decided based on the experience gained, research is needed to prove the presence or
absence of previous expectations which are the most important part in the decision.
According to Kotler and Armstrong (2016), the key to retaining customers is the
satisfaction of these customers. Indicators of customer satisfaction include re-purchase is
buying back, where the customer will return to the company to look for goods or services
needed. Besides creating word of mouth, customers will say good things about the
company to others. Creating an image is that customers will pay less attention to
competing companies.

RESEARCH METHODOLOGY
The type of research used in this research is quantitative research methods. Quantitative
research is basically framed in terms of the use of numbers, closed questions such as
experimental research (Creswell, 2013).
According to Malhotra (2010), population is the number of elements or objects that share
characteristics related to a particular marketing research problem. The population in this
study were J&T Express customers in Mojokerto in 2020 as many as 171,224 customers.
The technique used for sampling in this study is non-probability sampling. Non-
probability sampling is a sampling method that displays subjective and arbitrary nature,
where researchers select respondents based on assessment only (Berndt and Petzer,

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Journal of Marketing and Business Research

2011). Furthermore, to determine the number of samples needed in this study is

determined by the Slovin formula. The results of the calculation of the slovin formula, the
sample that will be used in this study is 99.69 respondents which the researchers rounded
into 100 respondents.
Based on the data sources in this study, the writing uses data collection techniques with
questionnaires to respondents. According to Ary (2010), a questionnaire is an instrument
in which respondents provide written responses to questions or mark items that indicate
their responses with the answer choices provided. The data collection instrument used in
the form of a questionnaire with a Likert Scale by providing answers whether the
respondents strongly agree, strongly agree, agree, quite agree, neutral, disagree, disagree,
or strongly disagree. The values in the answer choices include: SSS = Strongly Agree with
8 points, SS = Strongly Agree with 7 points, S = Agree with 6 points, CS = Fairly Agree with
5 points, N = Neutral with 4 points, KS = Disagree with 3 points, TS=Disagree with a score
of 2, STS=Strongly disagree with a score of 1.
According to Ary (2010), data analysis is a process in which researchers systematically
search and organize data to improve their understanding of the data and enable them to
present what they learn to others. The analytical technique used in this research is
multiple linear regression using computer assistance and SPSS program. Multiple linear
regression analysis was carried out because in this study the researcher wanted to know
the influence or relationship of two or more independent variables on one dependent
variable linearly.

RESULTS AND DISCUSSION

Respondent Profile
In this study, the following are the characteristics of research respondents based on
gender, age, and education. The respondents in this study were 100 J&T Express
Mojokerto customers.
Table 1. Respondent Profile
Description Group Quantity
Gender Woman 54
Man 46
Age 17-27 Years 89
28-38 Years 11
39-49 Years 0
Educational High School 78
Bachelor 22
Source: SPSS output

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The Effect of Corporate Image, Location, Price and Service Quality on Customer Satisfaction of J&T Express
Delivery Services

Validity and Reliability Test

The validity test is used to measure how accurate a statement in the questionnaire will be
asked to the respondent. The validity test was carried out on the statement items on the
questionnaire, namely by calculating the correlation coefficient of each statement with
the total score obtained and then compared with sig. (2-tailed) must be < 0.05 to be valid
using 30 samples for the test. If the significance value shows the number <0.05, then the
statement item can be said to be valid. The results of data validity can be seen in the
following Table 2. All items used as a measuring instrument for corporate image, location,
price, service quality, and customer satisfaction were declared valid.
Table 2. Validity Test
Corrected Item-Total
Variables Items
Correlation
Corporate Image (X.1) X.1.1 0.650
X.1.2 0.434
X.1.3 0.765
X.1.4 0.601
X.1.5 0.677
X.1.6 0.765
X.1.7 0.709
X.1.8 0.667
Location (X.2) X.2.1 0.856
X.2.2 0.815
X.2.3 0.843
X.2.4 0.797
X.2.5 0.769
X.2.6 0.680
X.2.7 0.767
X.2.8 0.853
Price (X.3) X.3.1 0.860
X.3.2 0.836
X.3.3 0.813
X.3.4 0.833
X.3.5 0.799
X.3.6 0.841
X.3.7 0.844
X.3.8 0.731

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Service Quality (X.4) X.4.1 0.626

X.4.2 0.694
X.4.3 0.736
X.4.4 0.724
X.4.5 0.600
X.4.6 0.439
X.4.7 0.731
X.4.8 0.603
X.4.9 0.472
X.4.10 0.653
Customer Satisfaction (Y) Y.1 0,762
Y.2 0,723
Y.3 0,773
Y.4 0,368
Y.5 0,772
Y.6 0,786
Source: SPSS output
Reliability test is used to determine whether or not the research instrument is reliable or
consistent in measuring the variables studied by using 30 samples for testing. A
questionnaire is said to be reliable or reliable if the answers to questions are consistent
or stable over time. Measurement of reliability in this study was carried out by means of
one shot or measurement only once. Here the measurement is only once and then the
results are compared with other questions or measure reliability with the Cronbach Alpha
statistical test (a). a variable is said to be reliable if the value of Cronbach Alpha (a) > 0.6.
Tests of reliability for each variable obtained data as shown in Table 3 below.
Table 3. Reliability Test
Variables Cronbach’s Alpha Description
Corporate Image (X.1) 0.770 Reliable
Location (X.2) 0.793 Reliable
Price (X.3) 0.760 Reliable
Service Quality (X.4) 0.635 Reliable
Consumer Satisfaction (Y) 0.725 Reliable
Source: SPSS output
From the results above, it shows that the alpha value of each variable X.1, X.2, X.3, X.4, Y
has a value greater than 0.60, thus all question items are considered reliable in carrying
out their functions as measuring instruments.

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The Effect of Corporate Image, Location, Price and Service Quality on Customer Satisfaction of J&T Express
Delivery Services

Classic Assumption Test

Normality test is conducted to determine whether the data is normally distributed or not.
In this normality test, the researcher uses statistical analysis that can be used to test
residual normality, namely the Kolmogorov-Smirnov (K-S) non-parametric statistical
test. The K-S test is used to determine the residual data is normally distributed if the K-S
significance probability value is > 0.05. Based on the results of the SPSS analysis output,
it is known that the K-S significance probability value of 0.131 is greater than 0.05. It can
be concluded that the data is normally distributed. This is in accordance with the
provisions that have been set, it can be concluded that the residuals are normally
distributed.
Multicollinearity test is used to test whether the independent variables are related
(correlated) or not. The results of the multicollinearity test can be seen in the following
table.
Table 4. Multicollinearity Test
Collinearity Statistics
Variables
VIF Tolerance
Corporate Image (X.1) 1.395 0.717
Location (X.2) 1.017 0.983
Price (X.3) 2,645 0.378
Service Quality (X.4) 2.781 0.360
Source: SPSS output
Based on Table 4, it is known that the Variance Influence Factor (VIF) value for all
independent variables is less than 10 and the Tolerance value for all independent
variables is greater than 0.1. Then it was concluded that all variables were not found to
have a correlation between independent variables or could also be called independently
of multicollinearity.

t-test
The t statistical test was used to determine whether the independent variable partially
had a significant effect on the dependent variable with the provision that the significance
value was <0.05, the independent variable had a significant effect on the dependent
variable. Based on the results of the t test, it can be concluded that corporate image,
location, price, service quality has a positive and partially significant effect on customer
satisfaction. The results of the t-test were carried out by comparing the sig probability
values for each independent variable with a specified limit of 0.05.

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Table 5. t-test
Model B Sig.
1 (Constant) 20.171 .000
Corporate Image (X.1) .052 .000
Location (X.2) .074 .001
Price (X.3) .125 .001
Service Quality (X.4) .011 .001
Source: SPSS output
Based on Table 5, (1) company image produces a sig-value of 0.000 which means <0.05,
indicating that the company's image partially has a significant effect on customer
satisfaction; (2) the location produces a sig-value of 0.001 meaning <0.05 indicating that
the location partially has a significant effect on customer satisfaction; (3) the price
produces a sig-value of 0.001 <0.05 indicating that the price partially has a significant
effect on customer satisfaction; (4) service quality produces a sig-value of 0.001 <0.05,
indicating that service quality partially has a significant effect on customer satisfaction.

F-test
F-test is used to determine whether the independent variables simultaneously or
simultaneously affect the dependent variable. From the test results, it can be seen that the
significance level of 0.001 < 0.005 so that it can be seen simultaneously that the variables
of corporate image, location, price, service quality have a significant simultaneous
influence on customer satisfaction.

Determinant coefficient
The results from output SPSS show the value of R2 (R Square) of 0.607 or 60.7%. This
shows that the variable of customer satisfaction that can be explained by the variables of
corporate image, location, price, and service quality is 60.7% while the remaining 39.3%
is explained by other factors not included in this research model.

Multiple Linear Regression Analysis

Multiple linear regression analysis was used with the aim of knowing the formulation of
the influence of the independent variable on the dependent variable. The results of linear
regression analysis can be arranged a multiple linear regression equation as follows:
Y = 20,171 + 0,052X.1 + 0,074X.2 + 0,125X.3 + 0,011X.4 + e
The equation shows that the product diversity is a variable that has a dominant effect.

34 . Didi Handoyo
The Effect of Corporate Image, Location, Price and Service Quality on Customer Satisfaction of J&T Express
Delivery Services

From the multiple linear regression model above, it can be described as follows: Constant
(a) = 20.171 which means that if there is no increase in the variables of corporate image
(X.1), location (X.2), price (X.3), and service quality (X.4) then the value of customer
satisfaction (Y) is 20,171. Corporate image regression coefficient (b1) = 0.052 indicates
that corporate image has a positive effect on customer satisfaction. Location regression
coefficient (b2) = 0.074 indicates that location has a positive effect on customer
satisfaction. Price regression coefficient (b3) = 0.125 indicates that price has a positive
effect on customer satisfaction. Service quality regression coefficient (b4) = 0.011
indicates that service quality has a positive effect on customer satisfaction.

Discussion
Based on the results of research conducted by researchers, it can be seen that the
company's image (X.1) has a partially significant effect on customer satisfaction. This
conclusion is supported by the results of the t test with a significance value of 0.000 less
than 0.05. Ariani et al. (2019) stated that the company's image had a significant partial
effect on customer satisfaction. Thus, according to the opinion of Kotler and Keller (2016),
corporate image is a set of beliefs, ideas, and impressions that a person has of an object.
Based on the results of research conducted by researchers, it can be seen that location
(X.2) has a partially significant effect on customer satisfaction. This is supported by the
results of the t test with a significance value of 0.001 less than 0.05.
Location as a place where a business or company activity operates and carries out
activities to produce goods, services or a place for consumers to come and shop. According
to Levy and Barton (2007), the location itself is the planning and implementation of a
product or service distribution program through the right place or location.
Based on the results of research conducted by researchers, it can be seen that the price
(X.3) has a partially significant effect on customer satisfaction. The t-test obtained a
significance value of 0.001 which is smaller than 0.05. Thus, according to Kotler and
Armstrong (2016), price is the amount of money spent for a product or service, or a
number of values exchanged by consumers for benefits or ownership or use of a product
or service. The results of this study are in accordance with the results of previous research
conducted by Ari (2012); and Zakaria (2015) which states that price has a partially
significant effect on customer satisfaction even though the research location is different.
Based on the results of the study, it is also known that service quality (X.4) has a partially
significant effect on customer satisfaction. This is supported by the results of the t test
with a significance value of 0.001 less than 0.05. According to Pawar and Sawant (2015),
service quality has been defined as the overall assessment of service by customers.
Service quality is a measure between the service delivered and the service expected.

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The results of this study are the same as the results of previous research conducted by
Zakaria (2015); and Lestari and Hidayat (2019) which stated that service quality had a
partial significant effect on customer satisfaction even though the research location was
different.
Another finding based on data processing through the F test is that company image,
location, price, and service quality together have a significant effect on customer
satisfaction. This is based on the resulting significance value, which is 0.001 smaller than
0.05. This states that the company's image, location, price, and service quality together
have a significant effect on customer satisfaction.

CONCLUSION
Based on the results of the analysis it was found that the corporate image variable has a
positive and significant effect on customer satisfaction of J&T Express Delivery Services
in Mojokerto. The location variable has a positive and significant effect on on customer
satisfaction. The price variable has a positive and significant impact on customer
satisfaction. The service quality variable has a positive and significant effect on customer
satisfaction. The variables of corporate image, location, price, and service quality
simultaneously have a significant effect on customer satisfaction of J&T Express Delivery
Services in Mojokerto.
Based on the conclusions drawn, it can then be proposed some suggestions that may be
carried out and useful for freight forwarding companies and for further researchers as
follows can improve the image of the company that is owned through appropriate and
sustainable promotional programs so that the image owned by PT. Global Jet Express
(J&T) in Mojokerto can be firmly entrenched in the minds of customers. The location
provided by the retailer must be chosen as ideally as possible in order to provide greater
opportunities to obtain visits from its target market. The price offered by PT. Global Jet
Express in Mojokerto should be able to compete more with companies engaged in the
same field so that the opportunity to gain a wider market share will be more open. In this
case, PT. Global Jet Express pays attention to the price policy that is set so that it can
always be accepted by every customer and sets a reasonable price according to the quality
of service and benefits obtained by the customer and can compete with its competitors,
meaning that the price offered is not too expensive from competitors who offer similar
services with the same service quality.
More attention to customers, such as increasing speed and accuracy in responding to
customer requests, as well as providing guarantees of satisfactory service so that the level
of customer satisfaction increases even more.

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The Effect of Corporate Image, Location, Price and Service Quality on Customer Satisfaction of J&T Express
Delivery Services

For further researchers, it is necessary to add other independent variables that can affect
customer satisfaction such as promotion, trust, timeliness, and so on. The results of this
study are used as input and add references for further research in the same research field.

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