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Begin Match to source 2 in source list: Submitted to Udayana University on 2018-04-19THE IMPLEMENTATION OF INVESTMENT MODEL TO INCREASE HOTEL’S CUSTOMERS COMMITMENT IN JAKARTAEnd Match Keni1), Begin Match to source 2 in source list: Submitted to Udayana University on 2018-04-19Ary SatriaEnd Match Pamungkas2) Tarumanagara University, Jakarta, Indonesia 1)keni@fe.untar.ac.id Abstract Hospitality industry in Indonesia offers huge opportunities. The occupancy rate continues to increase due to the increase in both domestic and foreign tourists. One of the critical factors for hotels to remain competitive is to retain existing customers. However, customer retention requires significant amount of efforts and resources as the market becomes more prominent. As customer retention becomes an important success factor, industry players need to have deep understanding of the drivers that influence customer retention/ Begin Match to source 5 in source list: Marnix Bugel. commitment.The investment model isEnd Match proposed Begin Match to source 5 in source list: Marnix Bugel. toEnd Match determine the factors that affect the level of customers’commitment. This model consists of three variables - satisfaction, quality of alternative and the investment size. This study examines the three variables Begin Match to source 1 in source list: Submitted to Universiti Sains Malaysia on 2014-08-07in the investment modelEnd Match and their relation Begin Match to source 1 in source list: Submitted to Universiti Sains Malaysia on 2014-08-07toEnd Match increase Begin Match to source 1 in source list: Submitted to Universiti Sains Malaysia on 2014-08-07customer commitment.End Match This is a descriptive research that Begin Match to source 1 in source list: Submitted to Universiti Sains Malaysia on 2014-08-07using a questionnaire to collectEnd Match the Begin Match to source 1 in source list: Submitted to Universiti Sains Malaysia on 2014-08-07data. TheEnd Match data analysis technique is a multiple regression analysis. The results evidenced that satisfaction and investment size positively affect customer’s commitment, while the quality of alternative does not affect customer’s commitment. Hence, the implementation of investment model to improve customer commitment can be implemented by increasing the satisfaction and the investment size. Keywords: Investment Model, Customer Commitment, Hospitality, Jakarta, Indonesia Introduction Tourism has an important role for economic development of a region. The existence of hotel gives the opportunity to the local residents to get a job and an income. “The Travel & Tourism Economic Impact Indonesia 2015" issued by the World Travel & Tourism Council revealed that in 2014, the field of tourism in Indonesia created 3,326,000 jobs employment (2.9% of total employment). This number is expected to grow by 2.3% in 2015 and will grow by 1.4% per year over the next ten years. In 2025, the tourism sector is expected to produce 3,905,000 jobs employment. In addition, hotel increases the value of land and encourages businesses of hotels’ surrounding. Hospitality also contributes to the development of tourism in the local area. Tourist area in a region will be progressed and visited by many tourists that are supported by a hotel lodging accommodations that is good and adequate. The hospitality industry in Indonesia has huge potential and will always be alive because of the natural resources of tourism in Indonesia are so numerous and interesting as well as its diversity and cultural uniqueness. The occupancy rate of hotels in various major cities in Indonesia is never low. The hotel occupancy rate in Indonesia has increased due to an increasing number of foreign and local tourists visit. The increasing number of tourists will certainly increase the occupancy rate of the hotel that invites more hotel business players. This result will raisethe competition among hotels. To be ready for competition, the management of a hotel needs to think about what efforts should be made so that tourists remained back to stay in the same hotel. In other words, what a hotel management should do to create loyal customers? Basically, hotel management needs to build strong relationships with its customers to keep customers’ satisfaction. Given the Begin Match to source 1 in source list: Submitted to Universiti Sains Malaysia on 2014-08-07importance of customer commitmentEnd Match for Begin Match to source 1 in source list: Submitted to Universiti Sains Malaysia on 2014-08-07aEnd Match company, especially Begin Match to source 1 in source list: Submitted to Universiti Sains Malaysia on 2014-08-07theEnd Match hospitality, the Begin Match to source 1 in source list: Submitted to Universiti Sains Malaysia on 2014-08-07knowledge and understandingEnd Match are Begin Match to source 1 in source list: Submitted to Universiti Sains Malaysia on 2014-08-07factorsEnd Match that affect Begin Match to source 1 in source list: Submitted to Universiti Sains Malaysia on 2014-08-07customerEnd Match commitment Begin Match to source 1 in source list: Submitted to Universiti Sains Malaysia on 2014-08-07is needed.End Match Some previous studies in the field of marketing show that there are many factors that can explain the customer commitment. However, few studies that implement the investment model to explain customer commitment to a company. Investment model had originally developed by Rusbult in psychological literature to examine the relationship between individuals (Rusbult, 1980a, 1980b, 1983; Rusbult et al., 1986). According to the investment model, commitment between individuals can be explained by three factors, among others: first, satisfaction with the relationship, meaning that the higher the level of satisfaction with the relationship, the commitment will be stronger; second, quality of alternative, referring to the perceived relationship quality comparison. This means that the individual has a high level of commitment if the alternative perceived quality worse; Third, the investment size, refers to the individual investment in a relationship, which means that if an individual has invested time and resources in a relationship, the commitment to the individual will be higher Begin Match to source 1 in source list: Submitted to Universiti Sains Malaysia on 2014-08-07(Rusbult, 1980a; Rusbult et al., 1986; Rusbult et al., 1998). Further studyEnd Match showed that Begin Match to source 1 in source list: Submitted to Universiti Sains Malaysia on 2014-08-07the investment modelEnd Match is not only implemented in relationship between individuals, but also the relationship between the company and its customers (Ping, 2007; Begin Match to source 1 in source list: Submitted to Universiti Sains Malaysia on 2014-08-07Sung & Campbell,End Match 2009; Begin Match to source 1 in source list: Submitted to Universiti Sains Malaysia on 2014-08-07Bugel et al., 2010; Sung & Choi, 2010;End Match Boakye et al., Begin Match to source 1 in source list: Submitted to Universiti Sains Malaysia on 2014-08-072012).End Match Research Begin Match to source 1 in source list: Submitted to Universiti Sains Malaysia on 2014-08-07Bugel et al. (2010)End Match implement Begin Match to source 1 in source list: Submitted to Universiti Sains Malaysia on 2014-08-07the investment modelEnd Match for the banking sector, health insurance, supermarkets, telecommunications and automotive. Results of research Begin Match to source 1 in source list: Submitted to Universiti Sains Malaysia on 2014-08-07Bugel et al. (2010)End Match showed that Begin Match to source 1 in source list: Submitted to Universiti Sains Malaysia on 2014-08-07the investment model can beEnd Match implemented Begin Match to source 1 in source list: Submitted to Universiti Sains Malaysia on 2014-08-07toEnd Match these five sectors, with the largest contribution in explaining customer commitment is Begin Match to source 5 in source list: Marnix Bugel. in the banking sector and theEnd Match smallest is Begin Match to source 5 in source list: Marnix Bugel. theEnd Match automotive Begin Match to source 5 in source list: Marnix Bugel. sectorEnd Match and supermarket. However, to the best of our knowledge, there is no research hastested the implementation Begin Match to source 5 in source list: Marnix Bugel. of the investment modelEnd Match to customer commitment Begin Match to source 5 in source list: Marnix Bugel. in theEnd Match hospitality Begin Match to source 5 in source list: Marnix Bugel. sector.End Match Therefore, this study examines the applicability of the investment model to customer commitment of hotels in Jakarta, Indonesia. Theoretical Background Customer Commitment Customer commitment is a major factor in the relationship marketing (Fullerton, 2003; Morgan & Hunt, 1994). According to Morgan and Hunt (1994: 23) explains that the commitment is “an exchange partner believing that an ongoing relationship with another is so important as to warrant maximum efforts at maintaining it.” Align with that definition, Moorman, Zaltman and Deshpande (1992: 316) reveal the commitment as “enduring desire to maintain a valued relationship.” In the marketing research, some researchers regard commitments as uni-dimensional concept Begin Match to source 1 in source list: Submitted to Universiti Sains Malaysia on 2014-08-07(Morgan & Hunt, 1994;End Match Prithcard Begin Match to source 1 in source list: Submitted to Universiti Sains Malaysia on 2014-08-07et al., 1999),End Match while other researchers regard Begin Match to source 1 in source list: Submitted to Universiti Sains Malaysia on 2014-08-07commitment as a multi-dimensional conceptEnd Match (Bansal, Irving & Taylor, 2004). Meyer and Allen initially proposed commitments differentiated into affective commitment Begin Match to source 1 in source list: Submitted to Universiti Sains Malaysia on 2014-08-07and continuance commitment. Affective commitmentEnd Match shows Begin Match to source 1 in source list: Submitted to Universiti Sains Malaysia on 2014-08-07emotional,End Match identification and involvement of employees in an organization, whereas continuance commitment refers to the employee's perception of the cost to be borne if leaving the organization (Meyer & Allen, 1984). Furthermore, Allen and Meyer suggest a third commitment, namely the normative commitment which refers to the feelings of employees of the obligations that must be given to the organization (Allen & Meyer, 1990). Investment Model Investment model originally was developed by Rusbult in the psychology literature with the aim to examine the relationship between individuals (Rusbult, 1980a, 1980b, 1983; Rusbult et al., 1986). This model was built based on several principles contained in interdependence theory (theory of dependency) and assume that the individual in general are encouraged to maximize results and minimize costs Begin Match to source 1 in source list: Submitted to Universiti Sains Malaysia on 2014-08-07(Kelley & Thibaut, 1978 in Rusbult, 1980a).End Match There are Begin Match to source 1 in source list: Submitted to Universiti Sains Malaysia on 2014-08-07two mainEnd Match factors in the theory of dependency (Rusbult et al., 1998). First, the dependence of an individual will increase if the increase satisfaction in the relations between individuals. Second, the dependence of an individual is not only influenced by the level of satisfaction, but is influenced Begin Match to source 1 in source list: Submitted to Universiti Sains Malaysia on 2014-08-07by the quality ofEnd Match one of the Begin Match to source 1 in source list: Submitted to Universiti Sains Malaysia on 2014-08-07alternativesEnd Match available. Begin Match to source 1 in source list: Submitted to Universiti Sains Malaysia on 2014-08-07Quality ofEnd Match alternative Begin Match to source 1 in source list: Submitted to Universiti Sains Malaysia on 2014-08-07refers to theEnd Match desire Begin Match to source 1 in source list: Submitted to Universiti Sains Malaysia on 2014-08-07of the bestEnd Match alternative Begin Match to source 1 in source list: Submitted to Universiti Sains Malaysia on 2014-08-07available. It is based on the extent to which the most important needsEnd Match of an individual can be effectively fulfilled from existing relationships. Investment models, further expanding the theory of dependency and reveal a commitment among individuals affected not only by the satisfaction, quality of alternative available today, Begin Match to source 1 in source list: Submitted to Universiti Sains Malaysia on 2014-08-07but also by the investment size (Rusbult, 1980a; Rusbult et al., 1998).End Match Further study showed that the investment model is not only implemented in relations between individuals, but also in the relationship between the company and its customers (Ping, 2007; Begin Match to source 1 in source list: Submitted to Universiti Sains Malaysia on 2014-08-07Sung & Campbell,End Match 2009; Begin Match to source 1 in source list: Submitted to Universiti Sains Malaysia on 2014-08-07Bugel et al., 2010; Sung & Choi, 2010;End Match Boakye et al., Begin Match to source 1 in source list: Submitted to Universiti Sains Malaysia on 2014-08-072012).End Match For example, research conducted by Bugel et al. (2010) implement the investment model for the banking sector, health insurance, supermarkets, telecommunications and automotive. Results of research Begin Match to source 1 in source list: Submitted to Universiti Sains Malaysia on 2014-08-07Bugel et al. (2010)End Match showed that Begin Match to source 1 in source list: Submitted to Universiti Sains Malaysia on 2014-08-07the investment model can beEnd Match implemented Begin Match to source 1 in source list: Submitted to Universiti Sains Malaysia on 2014-08-07toEnd Match these five sectors, with the largest contribution in explaining customer commitment is Begin Match to source 5 in source list: Marnix Bugel. in the banking sector and theEnd Match smallest is Begin Match to source 5 in source list: Marnix Bugel. theEnd Match automotive Begin Match to source 5 in source list: Marnix Bugel. sectorEnd Match and supermarket. Satisfaction According to Kotler and Keller (2016: 153), “satisfaction is a person's feelings of pleasure or disappointment the resulting from comparing a product's perceived performance (or outcome) in relation to his or her expectations.” Further Kotler and Keller (2016) explain a customer will be very satisfied or satisfied if the perceived performance exceeds or in accordance with customer expectations and vice versa. Oliver (1997) explained that the satisfaction of an assessment of the features of the Begin Match to source 1 in source list: Submitted to Universiti Sains Malaysia on 2014-08-07product or service, orEnd Match a Begin Match to source 1 in source list: Submitted to Universiti Sains Malaysia on 2014-08-07product or service itself,End Match which Begin Match to source 1 in source list: Submitted to Universiti Sains Malaysia on 2014-08-07can provideEnd Match the Begin Match to source 1 in source list: Submitted to Universiti Sains Malaysia on 2014-08-07level of fulfillmentEnd Match of customers’ wants. The customer is satisfied when products or services meet their needs and desires. In general, there are two approaches to conceptualize satisfaction, that is the cumulative approach and the approach of the transaction Begin Match to source 1 in source list: Submitted to Universiti Sains Malaysia on 2014-08-07(Boulding, 1993). InEnd Match the Begin Match to source 1 in source list: Submitted to Universiti Sains Malaysia on 2014-08-07cumulative approach, customer satisfaction can be defined asEnd Match the Begin Match to source 1 in source list: Submitted to Universiti Sains Malaysia on 2014-08-07overall evaluationEnd Match of a customer after consuming a product or service, while the transaction approaches explain that customer satisfaction as a function of expectation before consuming a product or service and the perceived performance after consuming the Begin Match to source 1 in source list: Submitted to Universiti Sains Malaysia on 2014-08-07product or service. In this study, customer satisfaction isEnd Match defined using the cumulative approach, where satisfaction is a total evaluation of a customer on the quality of services provided by the hotel. Top quality hospitality services using the seven dimensions of scale SERQUAL, developed by Lai and Hitchcock (2016), among others: tangibles, Begin Match to source 4 in source list: Ivan Ka Wai Lai, Michael Hitchcock. reliability, assurance, empathy, environment, technology and entertainment.End Match Quality Begin Match to source 4 in source list: Ivan Ka Wai Lai, Michael Hitchcock. ofEnd Match Alternatives Rusbult and Buunk (1993: 182) explained that “the quality of alternatives refers to an individual's judgment of the attractiveness of available alternatives - another relationship, dating around or the option of non-involvement.” Begin Match to source 1 in source list: Submitted to Universiti Sains Malaysia on 2014-08-07Meanwhile,End Match according to Begin Match to source 1 in source list: Submitted to Universiti Sains Malaysia on 2014-08-07Impett et al. (2001:End Match 313), “alternatives refer to an individual's subjective assessment of the rewards and costs that could be obtained outside the current relationship, including specific other partners, spending time with friends and family, or spending time alone.” In relationships between customers and brands, Sung and Choi (2010: 1056), “the quality of alternatives refers to a consumer's judgment or evaluation of the attractiveness of available alternative brand choices or option, for example: number of competing brands or quality of competing brands.” Based on the above definition, quality of alternative to be a consumer assessment or evaluation of the appeal of the selection of alternatives brands available. Begin Match to source 1 in source list: Submitted to Universiti Sains Malaysia on 2014-08-07For exampleEnd Match a Begin Match to source 1 in source list: Submitted to Universiti Sains Malaysia on 2014-08-07number of competing brands or the quality ofEnd Match the Begin Match to source 1 in source list: Submitted to Universiti Sains Malaysia on 2014-08-07competing brands.End Match Investment Size In relation to interpersonal relationships, investment size includes resources such as time effort and money spent on establishing relationships between individuals (Rusbult & Buunk, 1993). While in relation in the field of marketing, investment size Begin Match to source 1 in source list: Submitted to Universiti Sains Malaysia on 2014-08-07related to theEnd Match concept Begin Match to source 1 in source list: Submitted to Universiti Sains Malaysia on 2014-08-07of switchingEnd Match cost Begin Match to source 1 in source list: Submitted to Universiti Sains Malaysia on 2014-08-07and termination cost (Boakye et al., 2012; BugelEnd Match et al., Begin Match to source 1 in source list: Submitted to Universiti Sains Malaysia on 2014-08-072010; Sung & Choi, 2010), whichEnd Match refers Begin Match to source 1 in source list: Submitted to Universiti Sains Malaysia on 2014-08-07to the technicalEnd Match factors, Begin Match to source 1 in source list: Submitted to Universiti Sains Malaysia on 2014-08-07financialEnd Match and Begin Match to source 1 in source list: Submitted to Universiti Sains Malaysia on 2014-08-07psychological makeEnd Match the customer is Begin Match to source 1 in source list: Submitted to Universiti Sains Malaysia on 2014-08-07difficultEnd Match and Begin Match to source 1 in source list: Submitted to Universiti Sains Malaysia on 2014-08-07expensive toEnd Match move to Begin Match to source 1 in source list: Submitted to Universiti Sains Malaysia on 2014-08-07another brand (Beerli et al., 2004).End Match Investing Begin Match to source 1 in source list: Submitted to Universiti Sains Malaysia on 2014-08-07inEnd Match the Begin Match to source 1 in source list: Submitted to Universiti Sains Malaysia on 2014-08-07relationshipEnd Match between companies and customers will increase the switching cost, so the impact is difficult for customers to switch to another company. Thus, investing in customer relationships becomes significant Begin Match to source 1 in source list: Submitted to Universiti Sains Malaysia on 2014-08-07in terms of customer commitment (Bugel et al., 2010).End Match According to Sung and Choi (2010), Begin Match to source 1 in source list: Submitted to Universiti Sains Malaysia on 2014-08-07there are two perspectivesEnd Match in Begin Match to source 1 in source list: Submitted to Universiti Sains Malaysia on 2014-08-07explaining investmentEnd Match size. Begin Match to source 1 in source list: Submitted to Universiti Sains Malaysia on 2014-08-07First,End Match from the perspective in which the customers are showing their loyalty to the company because the company has invested resources in a relationship with the customer. In contrast, the second perspective, the customer shows his loyalty to the company caused by the customers themselves who have invested resources in a relationship with the company. In the study, investment size refers to the perspective or viewpoint of the customer, which means that the customer has invested Begin Match to source 1 in source list: Submitted to Universiti Sains Malaysia on 2014-08-07time, money and effortEnd Match (resources) to establish Begin Match to source 1 in source list: Submitted to Universiti Sains Malaysia on 2014-08-07relationships withEnd Match the company (hotel). Effect of the investment model on Begin Match to source 1 in source list: Submitted to Universiti Sains Malaysia on 2014-08-07customer commitment There are several studies thatEnd Match describe relationships between Begin Match to source 1 in source list: Submitted to Universiti Sains Malaysia on 2014-08-07three variables inEnd Match the Begin Match to source 1 in source list: Submitted to Universiti Sains Malaysia on 2014-08-07investment model and customer commitment. Bugel et al. (2010)End Match explain Begin Match to source 1 in source list: Submitted to Universiti Sains Malaysia on 2014-08-07the relationship between investment model andEnd Match customers Begin Match to source 1 in source list: Submitted to Universiti Sains Malaysia on 2014-08-07commitmentEnd Match on Begin Match to source 1 in source list: Submitted to Universiti Sains Malaysia on 2014-08-07five sectors and theEnd Match results Begin Match to source 1 in source list: Submitted to Universiti Sains Malaysia on 2014-08-07showed thatEnd Match the Begin Match to source 1 in source list: Submitted to Universiti Sains Malaysia on 2014-08-07banking sector has the highestEnd Match application rate in the Begin Match to source 1 in source list: Submitted to Universiti Sains Malaysia on 2014-08-07investment model andEnd Match tend Begin Match to source 1 in source list: Submitted to Universiti Sains Malaysia on 2014-08-07to beEnd Match low Begin Match to source 1 in source list: Submitted to Universiti Sains Malaysia on 2014-08-07inEnd Match supermarkets Begin Match to source 1 in source list: Submitted to Universiti Sains Malaysia on 2014-08-07and automotiveEnd Match sectors. Begin Match to source 1 in source list: Submitted to Universiti Sains Malaysia on 2014-08-07Three variablesEnd Match used in Begin Match to source 1 in source list: Submitted to Universiti Sains Malaysia on 2014-08-07this model to predict customer commitmentEnd Match is Begin Match to source 1 in source list: Submitted to Universiti Sains Malaysia on 2014-08-07satisfaction, quality ofEnd Match alternative Begin Match to source 1 in source list: Submitted to Universiti Sains Malaysia on 2014-08-07and investmentEnd Match size. Results from Begin Match to source 1 in source list: Submitted to Universiti Sains Malaysia on 2014-08-07thisEnd Match study Begin Match to source 1 in source list: Submitted to Universiti Sains Malaysia on 2014-08-07isEnd Match the Begin Match to source 1 in source list: Submitted to Universiti Sains Malaysia on 2014-08-07satisfaction isEnd Match the main Begin Match to source 1 in source list: Submitted to Universiti Sains Malaysia on 2014-08-07factorEnd Match that affect Begin Match to source 1 in source list: Submitted to Universiti Sains Malaysia on 2014-08-07customer commitment inEnd Match the Begin Match to source 1 in source list: Submitted to Universiti Sains Malaysia on 2014-08-07service sector. Furthermore, RusbultEnd Match and Begin Match to source 1 in source list: Submitted to Universiti Sains Malaysia on 2014-08-07Buunk (1993) concluded thatEnd Match high Begin Match to source 1 in source list: Submitted to Universiti Sains Malaysia on 2014-08-07commitmentEnd Match can Begin Match to source 1 in source list: Submitted to Universiti Sains Malaysia on 2014-08-07be achieved ifEnd Match customers Begin Match to source 1 in source list: Submitted to Universiti Sains Malaysia on 2014-08-07feelEnd Match that Begin Match to source 1 in source list: Submitted to Universiti Sains Malaysia on 2014-08-07they are satisfied with the relationshipEnd Match involving appreciation Begin Match to source 1 in source list: Submitted to Universiti Sains Malaysia on 2014-08-07andEnd Match without Begin Match to source 1 in source list: Submitted to Universiti Sains Malaysia on 2014-08-07incurEnd Match huge costs. Begin Match to source 1 in source list: Submitted to Universiti Sains Malaysia on 2014-08-07ItEnd Match is explain Begin Match to source 1 in source list: Submitted to Universiti Sains Malaysia on 2014-08-07that whenEnd Match a person Begin Match to source 1 in source list: Submitted to Universiti Sains Malaysia on 2014-08-07is satisfied with the relationship, then thatEnd Match person will be Begin Match to source 1 in source list: Submitted to Universiti Sains Malaysia on 2014-08-07moreEnd Match committed Begin Match to source 1 in source list: Submitted to Universiti Sains Malaysia on 2014-08-07toEnd MatchBegin Match to source 1 in source list: Submitted to Universiti Sains Malaysia on 2014-08-07the relationship. SungEnd Match and Begin Match to source 1 in source list: Submitted to Universiti Sains Malaysia on 2014-08-07CampbellEnd Match (2009) Begin Match to source 1 in source list: Submitted to Universiti Sains Malaysia on 2014-08-07and SungEnd Match and Begin Match to source 1 in source list: Submitted to Universiti Sains Malaysia on 2014-08-07Choi (2010) emphasized that higher satisfactionEnd Match will drive Begin Match to source 1 in source list: Submitted to Universiti Sains Malaysia on 2014-08-07customerEnd Match towards better Begin Match to source 1 in source list: Submitted to Universiti Sains Malaysia on 2014-08-07commitment,End Match where this is Begin Match to source 1 in source list: Submitted to Universiti Sains Malaysia on 2014-08-07in line withEnd Match research Begin Match to source 1 in source list: Submitted to Universiti Sains Malaysia on 2014-08-07conducted by Liang et al. (2009),End Match which suggests Begin Match to source 1 in source list: Submitted to Universiti Sains Malaysia on 2014-08-07that customer satisfaction should be the key toEnd Match improving relations and a major Begin Match to source 1 in source list: Submitted to Universiti Sains Malaysia on 2014-08-07factor toEnd Match gain Begin Match to source 1 in source list: Submitted to Universiti Sains Malaysia on 2014-08-07customer commitmentEnd Match to Begin Match to source 1 in source list: Submitted to Universiti Sains Malaysia on 2014-08-07theEnd Match brand. Begin Match to source 1 in source list: Submitted to Universiti Sains Malaysia on 2014-08-07Customer commitmentEnd Match is based on the Begin Match to source 1 in source list: Submitted to Universiti Sains Malaysia on 2014-08-07customer's desire toEnd Match get Begin Match to source 1 in source list: Submitted to Universiti Sains Malaysia on 2014-08-07aEnd Match good Begin Match to source 1 in source list: Submitted to Universiti Sains Malaysia on 2014-08-07relationship (Morgan & Hunt, 1994). Chen (2012) andEnd Match Garbiano and Begin Match to source 1 in source list: Submitted to Universiti Sains Malaysia on 2014-08-07Johnson (1999) identified that customer commitment is positively influenced by customer satisfaction.End MatchBegin Match to source 3 in source list: Submitted to Universiti Sains Malaysia on 2014-08-07Therefore, the first hypothesis which can be developed as follow:End Match H1: Satisfactionhas a positive effect to commitment Begin Match to source 1 in source list: Submitted to Universiti Sains Malaysia on 2014-08-07Quality of alternatives is perceived as another substantial factor to predict commitment inEnd Match the Begin Match to source 1 in source list: Submitted to Universiti Sains Malaysia on 2014-08-07investment model. Stronger commitment exists ifEnd Match the Begin Match to source 1 in source list: Submitted to Universiti Sains Malaysia on 2014-08-07number of alternatives are lower or not attractive. On the other hand, if high quality alternatives are there, commitment would be weaker (Rusbult, 1980a). Impett et al. (2001) definedEnd Match the Begin Match to source 1 in source list: Submitted to Universiti Sains Malaysia on 2014-08-07quality of alternative as individual force that pulls someone from a relationship. When this factor is weak, people become more committed.End Match Inline Begin Match to source 1 in source list: Submitted to Universiti Sains Malaysia on 2014-08-07with this, SungEnd Match and Begin Match to source 1 in source list: Submitted to Universiti Sains Malaysia on 2014-08-07CampbellEnd Match (2009) Begin Match to source 1 in source list: Submitted to Universiti Sains Malaysia on 2014-08-07and SungEnd Match and Begin Match to source 1 in source list: Submitted to Universiti Sains Malaysia on 2014-08-07Choi (2010) also mentioned that higher customer commitment would be achieved if the quality of alternative is weak, while Bugel et al.(2010) found out that alternative is the highest in supermarket and automotive sectors and the lowest inEnd Match the Begin Match to source 1 in source list: Submitted to Universiti Sains Malaysia on 2014-08-07banking industry.End Match Thus, Begin Match to source 3 in source list: Submitted to Universiti Sains Malaysia on 2014-08-07the second hypothesis can be developed as follow:End Match H2: Begin Match to source 3 in source list: Submitted to Universiti Sains Malaysia on 2014-08-07Quality ofEnd Match alternativeshas Begin Match to source 3 in source list: Submitted to Universiti Sains Malaysia on 2014-08-07a negative effect toEnd Match commitment Begin Match to source 1 in source list: Submitted to Universiti Sains Malaysia on 2014-08-07Bugel et al. (2010), from previousEnd Match studies found Begin Match to source 1 in source list: Submitted to Universiti Sains Malaysia on 2014-08-07that there isEnd Match a Begin Match to source 1 in source list: Submitted to Universiti Sains Malaysia on 2014-08-07positiveEnd Match correlation Begin Match to source 1 in source list: Submitted to Universiti Sains Malaysia on 2014-08-07betweenEnd Match the Begin Match to source 1 in source list: Submitted to Universiti Sains Malaysia on 2014-08-07investmentEnd Match size Begin Match to source 1 in source list: Submitted to Universiti Sains Malaysia on 2014-08-07inEnd Match the Begin Match to source 1 in source list: Submitted to Universiti Sains Malaysia on 2014-08-07relationshipEnd Match with the Begin Match to source 1 in source list: Submitted to Universiti Sains Malaysia on 2014-08-07customer commitment.End Match The Begin Match to source 1 in source list: Submitted to Universiti Sains Malaysia on 2014-08-07investmentEnd Match size has the highest correlation with the commitments in the banking and automotive sectors, while the telecommunications sector has the lowest correlation. Furthermore, the higher investment size will move in a better commitment Begin Match to source 1 in source list: Submitted to Universiti Sains Malaysia on 2014-08-07to theEnd Match brand Begin Match to source 1 in source list: Submitted to Universiti Sains Malaysia on 2014-08-07(Sung & Campbell,End Match 2009; Begin Match to source 1 in source list: Submitted to Universiti Sains Malaysia on 2014-08-07Sung & Choi, 2010).End Match Hence, we posit the following Begin Match to source 1 in source list: Submitted to Universiti Sains Malaysia on 2014-08-07hypothesis: H3: InvestmentEnd Match sizehas a Begin Match to source 1 in source list: Submitted to Universiti Sains Malaysia on 2014-08-07positive effect to commitmentEnd Match Methods Begin Match to source 1 in source list: Submitted to Universiti Sains Malaysia on 2014-08-07This researchEnd Match tried Begin Match to source 1 in source list: Submitted to Universiti Sains Malaysia on 2014-08-07to explain theEnd Match linkages of Begin Match to source 1 in source list: Submitted to Universiti Sains Malaysia on 2014-08-07variablesEnd MatchBegin Match to source 1 in source list: Submitted to Universiti Sains Malaysia on 2014-08-07in the investment model to commitment.End Match Therefore, Begin Match to source 1 in source list: Submitted to Universiti Sains Malaysia on 2014-08-07theEnd Match design of the research is descriptive research design. The approach used in the descriptive research is cross- sectional.Methods of sample selection used in this research is a non-probability sampling method. Sample selection techniques used is the technique of convenience with the number of samples obtained as many as 249 customers. The Begin Match to source 3 in source list: Submitted to Universiti Sains Malaysia on 2014-08-07questionnaire is developed based on the literature study.End MatchBegin Match to source 3 in source list: Submitted to Universiti Sains Malaysia on 2014-08-07They areEnd Match 14 Begin Match to source 3 in source list: Submitted to Universiti Sains Malaysia on 2014-08-07items to measure allEnd Match variables, Begin Match to source 3 in source list: Submitted to Universiti Sains Malaysia on 2014-08-07which are adapted fromEnd Match previous study (see Table I). Multiple regression analysis is used to test the hypotheses. Table I. Measurement Variable Measurement Source Begin Match to source 4 in source list: Ivan Ka Wai Lai, Michael Hitchcock. I was fully satisfied with the services offered by this hotel.End Match Lai & Satisfaction Begin Match to source 4 in source list: Ivan Ka Wai Lai, Michael Hitchcock. The services offered by this hotel met my expectations.End Match Hitchcock Begin Match to source 4 in source list: Ivan Ka Wai Lai, Michael Hitchcock. I am satisfied with my experience in this hotel.End Match (2016) Other hotel has more modern looking equipment. Alternatives Employees of other hotel provide more prompt service. Zeithaml & Quality of Other hotel provides more reliable services. Parasuraman, Begin Match to source 6 in source list: Submitted to University of Leeds on 2012-08-30Employees ofEnd Match other Begin Match to source 6 in source list: Submitted to University of Leeds on 2012-08-30hotel are consistently courteous with me.End Match Berry (1991) Begin Match to source 6 in source list: Submitted to University of Leeds on 2012-08-30Employees ofEnd Match other Begin Match to source 6 in source list: Submitted to University of Leeds on 2012-08-30hotel understand my specific needs.End Match Investment Size I have invested a great deal of money in this hotel. Agnew I have invested a great deal of time in the relationship with this hotel. Rusbult, Martz &Begin Match to source 1 in source list: Submitted to Universiti Sains Malaysia on 2014-08-07All things considered,End Match I Begin Match to source 1 in source list: Submitted to Universiti Sains Malaysia on 2014-08-07have put a lot into the relationship with thisEnd Match hotel. (1998) Commitment I enjoy discussing about this hotel with people outside it. Meyer (1990) I Begin Match to source 1 in source list: Submitted to Universiti Sains Malaysia on 2014-08-07would be very happy to remain as a customer ofEnd Match this hotel. Allen & This hotel has a great deal of personal meaning to me. Results and Discussions Goodness of measures Begin Match to source 3 in source list: Submitted to Universiti Sains Malaysia on 2014-08-07Factor analysis is used to measure the fitness of data. ValidityEnd Match test is done to determine how well an instrument developed can measure a particular concept that is intended to measure. Begin Match to source 7 in source list: Arnold Japutra, Keni Keni, Bang Nguyen. As shown in TableEnd Match II, Begin Match to source 7 in source list: Arnold Japutra, Keni Keni, Bang Nguyen. the factorEnd Match loadings Begin Match to source 7 in source list: Arnold Japutra, Keni Keni, Bang Nguyen. of each of the items are within the acceptable range. The factor loadingsEnd Match all Begin Match to source 7 in source list: Arnold Japutra, Keni Keni, Bang Nguyen. of the items are above 0.70.End MatchBegin Match to source 3 in source list: Submitted to Universiti Sains Malaysia on 2014-08-07Meanwhile, the reliabilityEnd Match test Begin Match to source 3 in source list: Submitted to Universiti Sains Malaysia on 2014-08-07is conducted by calculatingEnd MatchBegin Match to source 1 in source list: Submitted to Universiti Sains Malaysia on 2014-08-07Cronbach’s Alpha. According to Hair et al. (2010)End MatchBegin Match to source 1 in source list: Submitted to Universiti Sains Malaysia on 2014-08-07Cronbach’s Alpha of 0.7 or higherEnd Match is Begin Match to source 1 in source list: Submitted to Universiti Sains Malaysia on 2014-08-07a good rule of thumb for reliability.End Match All constructs in Begin Match to source 1 in source list: Submitted to Universiti Sains Malaysia on 2014-08-07thisEnd MatchBegin Match to source 3 in source list: Submitted to Universiti Sains Malaysia on 2014-08-07study have met the requirements for validity and reliability test.End Match Table II. Validity and reliability test results Variable Measurement Factor loadings Cronbach’ s Alpha Begin Match to source 4 in source list: Ivan Ka Wai Lai, Michael Hitchcock. I was fully satisfied with the services offered by this hotel.End Match 0.919 0.912 Satisfaction The Begin Match to source 4 in source list: Ivan Ka Wai Lai, Michael Hitchcock. services offered by this hotel met my expectations.End Match 0.934 Begin Match to source 4 in source list: Ivan Ka Wai Lai, Michael Hitchcock. I am satisfied with my experience in this hotel.End Match 0.914 Other hotel has more modern looking equipment. 0.765 0.913 Alternatives Employees of other hotel provide more prompt service. 0.899 Quality of Other hotel provides more reliable services. 0.914 Begin Match to source 6 in source list: Submitted to University of Leeds on 2012-08-30Employees ofEnd Match other Begin Match to source 6 in source list: Submitted to University of Leeds on 2012-08-30hotel are consistently courteous with me.End Match 0.863 Begin Match to source 6 in source list: Submitted to University of Leeds on 2012-08-30Employees ofEnd Match other Begin Match to source 6 in source list: Submitted to University of Leeds on 2012-08-30hotel understand my specific needs.End Match 0.877 Investment I Begin Match to source 1 in source list: Submitted to Universiti Sains Malaysia on 2014-08-07have invested a great deal of time in the relationship with thisEnd Match 0.825 0.781 hotel. Size I have invested a great deal of money in this hotel. 0.795 Begin Match to source 1 in source list: Submitted to Universiti Sains Malaysia on 2014-08-07All things considered,End Match I Begin Match to source 1 in source list: Submitted to Universiti Sains Malaysia on 2014-08-07have put a lot into the relationship with thisEnd Match hotel. 0.883 I Begin Match to source 1 in source list: Submitted to Universiti Sains Malaysia on 2014-08-07would be very happy to remain as a customer of thisEnd Match hotel. 0.771 0.753 Commitment I enjoy discussing about this hotel with people outside it. 0.882 This hotel has a great deal of personal meaning to me. 0.814 Hypotheses testing results Table III shows relationship, Begin Match to source 1 in source list: Submitted to Universiti Sains Malaysia on 2014-08-07t-value, each path variable coefficient and significancy of this model. TableEnd Match III. Results Begin Match to source 1 in source list: Submitted to Universiti Sains Malaysia on 2014-08-07ofEnd Match hypotheses Begin Match to source 1 in source list: Submitted to Universiti Sains Malaysia on 2014-08-07testingEnd Match Hypothesis Relationships Estimate t-value H1 Satisfaction ? commitment 0.273 4.912** H2 Quality of alternatives ? commitment -0.023 -0.424 H3 Investment size ? commitment 0.411 7.359** *?<0.05; **?<0.01; The findings support H1, which Begin Match to source 1 in source list: Submitted to Universiti Sains Malaysia on 2014-08-07satisfaction has a positive effect customer commitmentEnd Match (coefficient = 0.273; t=4.912; ?<0.01). Greater satisfaction means higher commitment. The result of the study consistence to the Begin Match to source 1 in source list: Submitted to Universiti Sains Malaysia on 2014-08-07prior studies (Rusbult & Buunk, 1993; Garbarino & Johnson, 1999; Sung & Campbell,End Match 2009; Bugelet Begin Match to source 1 in source list: Submitted to Universiti Sains Malaysia on 2014-08-07al., 2010; Sung & Choi, 2010; Chen, 2012).End Match It is Begin Match to source 1 in source list: Submitted to Universiti Sains Malaysia on 2014-08-07concluded that commitment is significantly influenced by service satisfaction. Customer commitment is positively associated with customer satisfaction based onEnd Match the Begin Match to source 1 in source list: Submitted to Universiti Sains Malaysia on 2014-08-07studies conducted by SungEnd Match and Begin Match to source 1 in source list: Submitted to Universiti Sains Malaysia on 2014-08-07CampbellEnd Match (2009). Begin Match to source 1 in source list: Submitted to Universiti Sains Malaysia on 2014-08-07SungEnd Match and Begin Match to source 1 in source list: Submitted to Universiti Sains Malaysia on 2014-08-07Choi (2010) found out that the greater satisfaction of individuals, the higher their commitment to the brand. Similarly, if personal relationship with one’s partner is positive and enjoyable, the satisfaction with the relationship will be higher(Rusbult & Buunk, 1993). A study conducted by Bugel et al. (2010) showed that satisfaction is an important factor that will lead to customer commitment in the service sector. Finally, Chen (2012) and GarbarinoEnd Match and Begin Match to source 1 in source list: Submitted to Universiti Sains Malaysia on 2014-08-07Johnson (1999) found that customer commitment is positively influenced by customer satisfaction. Results of this study and supported by prior studies.End Match This study Begin Match to source 1 in source list: Submitted to Universiti Sains Malaysia on 2014-08-07concludes that satisfaction has a positive effect on customer commitment, specifically inEnd Match thehospitality Begin Match to source 1 in source list: Submitted to Universiti Sains Malaysia on 2014-08-07industry.End Match H2 states Begin Match to source 1 in source list: Submitted to Universiti Sains Malaysia on 2014-08-07that quality of alternatives has a negative effect toEnd Match commitment; Begin Match to source 1 in source list: Submitted to Universiti Sains Malaysia on 2014-08-07the resultEnd Match do Begin Match to source 1 in source list: Submitted to Universiti Sains Malaysia on 2014-08-07notEnd Match support Begin Match to source 1 in source list: Submitted to Universiti Sains Malaysia on 2014-08-07thisEnd Match hypothesis (coefficient = -0.023; t=-0.424; ?>0.05). Although the direction is as expected, greater quality of alternatives does not lead to lower commitment. The previous studies do not evidence in this study. H3 states that investment size has a positive effect to commitment; the result support this hypothesis (coefficient = 0.411; t=7.359; ?<0.01).The Begin Match to source 1 in source list: Submitted to Universiti Sains Malaysia on 2014-08-07result of this study is in line with prior studies. Higher commitment is more likely to be achieved if an individual has put a great deal of investment in the current relationship (Rusbult, 1980a; Rusbult & Buunk,End Match 1993; Begin Match to source 1 in source list: Submitted to Universiti Sains Malaysia on 2014-08-07Sung & Campbell,End Match 2009; Begin Match to source 1 in source list: Submitted to Universiti Sains Malaysia on 2014-08-07Bugel et al., 2010 and Sung & Choi, 2010). In the study conducted by LeEnd Match and Begin Match to source 1 in source list: Submitted to Universiti Sains Malaysia on 2014-08-07Agnew (2003), it can be observed that there is a significant correlation between investment size and commitment in their interpersonal relationship. In summary, investment size has a significant impact and is positively correlated to the customer commitment. It is also supported byEnd Match results from the Begin Match to source 1 in source list: Submitted to Universiti Sains Malaysia on 2014-08-07study and findings from past researches.End Match Conclusion After analysis and discussions, the conclusions are as follows: 1) Indicators Begin Match to source 5 in source list: Marnix Bugel. to measureEnd Match all Begin Match to source 5 in source list: Marnix Bugel. the variablesEnd Match in Begin Match to source 5 in source list: Marnix Bugel. the investment modelEnd Match are already qualified in both the validity and the reliability analysis, 2) Results of hypothesis testing showed satisfaction and investment size positively affect customer commitment, while the quality of alternative does not affect customer commitment, 3) Implementation of investment models to increase customer’s commitment can be made by increasing the satisfaction and investment size. The results from this research suggest Begin Match to source 1 in source list: Submitted to Universiti Sains Malaysia on 2014-08-07customer satisfaction should be theEnd Match main Begin Match to source 1 in source list: Submitted to Universiti Sains Malaysia on 2014-08-07focusEnd Match in long-term relationships of hotel customers. It will increase the effectiveness of hotel marketing program. To improve satisfaction, hotel management should strive to provide good services. The Begin Match to source 1 in source list: Submitted to Universiti Sains Malaysia on 2014-08-07investment size plays a significant role inEnd Match improving Begin Match to source 1 in source list: Submitted to Universiti Sains Malaysia on 2014-08-07customerEnd Match commitment Begin Match to source 1 in source list: Submitted to Universiti Sains Malaysia on 2014-08-07andEnd Match research describes that among the Begin Match to source 1 in source list: Submitted to Universiti Sains Malaysia on 2014-08-07three variables ofEnd Match the Begin Match to source 1 in source list: Submitted to Universiti Sains Malaysia on 2014-08-07investment model,End Match the Begin Match to source 1 in source list: Submitted to Universiti Sains Malaysia on 2014-08-07investment size is theEnd Match most powerful Begin Match to source 1 in source list: Submitted to Universiti Sains Malaysia on 2014-08-07predictorEnd Match to predict Begin Match to source 1 in source list: Submitted to Universiti Sains Malaysia on 2014-08-07customerEnd Match commitment. Begin Match to source 1 in source list: Submitted to Universiti Sains Malaysia on 2014-08-07To increaseEnd Match the Begin Match to source 1 in source list: Submitted to Universiti Sains Malaysia on 2014-08-07investment size,End Match management create Begin Match to source 1 in source list: Submitted to Universiti Sains Malaysia on 2014-08-07a loyalty program where customersEnd Match can earn Begin Match to source 1 in source list: Submitted to Universiti Sains Malaysia on 2014-08-07points for everyEnd Match stay at a five-star hotel and from points earned; customers can trade them for Begin Match to source 1 in source list: Submitted to Universiti Sains Malaysia on 2014-08-07shopping vouchers or other attractive prizes.End Match This Begin Match to source 1 in source list: Submitted to Universiti Sains Malaysia on 2014-08-07loyalty programEnd Match is expected to increase both of customer commitment and increase customer loyalty. References Allen, N. J., & Meyer, J. P. (1990). The measurement and antecedents of affective, continuance and normative commitment to the organization. Journal of Occupational Psychology, 63, 1-18. Anderson, James C.,& Gerbing, D. W. (1988). Structural equation modeling in practice: a review and recommended two-step approach.Psychological Bulletin, 103(3), 411-23. Bansal, H. S., Irving, P. G., & Taylor, S. F. (2004). A three-commitment model of customer commitment to service providers. Journal of the Academy of Marketing Science, 32(3), 2234-2250. Beerli, A., Martín, J. D., & Quintana, A. (2004). A model of customer loyalty in the retail banking market. European Journal of Marketing, 38(1), 253-275. Boulding, William, Kalra, Ajay, Staelin, R., & Zeithaml, V.A. (1993). A dynamic process model of service quality: from expectation to behavioral intentions. Journal of Marketing Research, XXX(February 1993), 7-27. Boakye, K. G., Kwon, J., Blankson, C., & Prybutok, V. R. (2012). The attraction of the sizzle: a service Investment Model. 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Begin Match to source 2 in source list: Submitted to Udayana University on 2018-04-19The Fifth International Conference on Entrepreneurship and Business Management (ICEBM 2016) Tainan, Taiwan – November 17-18, 2016 ISBN : 978-979-9234-59-9 The Fifth International Conference on Entrepreneurship and Business Management (ICEBM 2016) Tainan, Taiwan – November 17-18, 2016 ISBN : 978-979-9234-59-9 The Fifth International Conference on Entrepreneurship and Business Management (ICEBM 2016) Tainan, Taiwan – November 17-18, 2016 ISBN : 978-979-9234-59-9 The Fifth International Conference on Entrepreneurship and Business Management (ICEBM 2016) Tainan, Taiwan – November 17-18, 2016 ISBN : 978-979-9234-59-9 The Fifth International Conference on Entrepreneurship and Business Management (ICEBM 2016) Tainan, Taiwan – November 17-18, 2016 ISBN : 978-979-9234-59-9 The Fifth International Conference on Entrepreneurship and Business Management (ICEBM 2016) Tainan, Taiwan – November 17-18, 2016 ISBN : 978-979-9234-59-9End Match The Fifth International Conference on Entrepreneurship and Business Management (ICEBM 2016) Tainan, Taiwan – November 17-18, 2016 ISBN : 978-979-9234-59-9 272 273 274 275 276 277 278