Vol. 5, No. 10, October 2024

E-ISSN:2723 – 6692

P-ISSN:2723– 6595

http://jiss.publikasiindonesia.id/

Journal of Indonesian Social Sciences, Vol. 5, No. 10, October 2024 2635

The Influence of Brand Image, Brand Trust, Service Quality

through Customer Satisfaction on Honda Brand Motorcycle

Brand Loyalty in DKI Jakarta

Sugiearto Buntoro Theodore, Tony Sitinjak

Kwik Kian Gie School of Business, Jakarta, Indonesia

Email: 0892201002@student.kwikkiangie.ac.id, tony.sitinjak@kwikkiangie.ac.id

Correspondence: 0892201002@student.kwikkiangie.ac.id

KEYWORDS

ABSTRACT

Brand image; brand trust;

service quality; customer

satisfaction; brand loyalty;

Honda motorcycles, DKI

Jakarta

The automotive industry in Indonesia plays a crucial role in

the country's economic development, with motorcycles being

one of the most popular modes of transportation. Honda

motorcycles have a significant market share among various

brands due to their strong brand image, trust, and service

quality. This study analyses the influence of brand image,

trust, and service quality on Honda brand motorcycle brand

loyalty through customer satisfaction in DKI Jakarta. Using a

quantitative approach with a survey method, data was

collected from 200 respondents who used Honda motorcycles

in the DKI Jakarta area. Data was analysed using the Structural

Equation Modeling (SEM) technique. The study results show

that brand image, trust, and service quality significantly affect

customer satisfaction, impacting brand loyalty. Customer

satisfaction is essential to strengthening the relationship

between independent variables and brand loyalty. These

findings underscore the importance of improving service

quality, strengthening the image, and building trust to create

loyal customers for the Honda brand.

Attribution-ShareAlike 4.0 International (CC BY-SA 4.0)

Introduction

According to SUPAS (Inter-Census Population Survey) of the Central Statistics Agency, carried

out in 2022, Indonesia's population is 275.773 million. With an average annual growth of 3.33 million,

Indonesia is a strategic market destination for many companies to develop their businesses and

industries. One industry that attracts much interest from companies is the automotive industry (BPS,

2022).

According to the Ministry of Industry (2022), the automotive industry is one of the critical

sectors that contributes significantly to the country's economy. As demonstrated by its significant

contribution to the formation of GDP, its contribution to the economy also shows the ability to drive

many other industries through the demand for various raw materials, components, and other

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Journal of Indonesian Social Sciences, Vol. 5, No. 10, October 2024 2636

supporting materials. On the contrary, the automotive industry creates many jobs and generates

foreign exchange for the country. Jobs are open for industrial businesses and their supporting

activities, ranging from car and spare parts sales to vehicle repair shops, spread across cities and

villages. As is known, the automotive industry faced significant challenges during the COVID-19

pandemic. The Transportation Equipment Industry contracted by 19.86% in 2020 after a contraction

of 3.43% in 2019. Two-wheeled vehicle sales increased, but not as much as the increase in four-

wheeled vehicle sales. Sales of two-wheeled vehicles in Indonesia fell to 3.6 million units in 2020, or

a decrease of about 44%, almost the same as the decline in four-wheeled vehicles. In the domestic

market, the increase in motorcycle sales is hampered by several factors. Some of them are a decrease

in purchasing power due to the COVID-19 pandemic, the demographics of motorcycle users, mainly

the lower middle-income group, and the lack of incentives for four-wheeled vehicles. Two-wheeled

car exports fell 11% from 468.23 million units in January-June 2022 to 417.97 thousand. The

opportunities for the automotive industry to develop better are available in various forms. Starting

from the large market, government policies that support manufacturers and consumers, the relatively

strong performance of the automotive industry at the ASEAN level, to opportunities in the future

electric car era, all provide a breath of fresh air for Indonesia's automotive industry to be able to grow

better in the future.

Based on the information above, motorcycle manufacturers should consider Indonesia because

of its vast potential. Companies such as Honda, Yamaha, Suzuki, and Kawasaki, the world's major

manufacturers, seem to be increasingly serious about working on the Indonesian market, which is

reflected in their investment.

Referring to data from the Indonesia Motorcycle Industry Association (AISI) released in January

2023, the number of motorcycle sales in Indonesia was recorded at 5.22 million units in 2022. This

figure increased by 3.24% compared to the previous year. In the report, the sales figure met AISI's

target throughout 2022, which is in the range of 5.1 million to 5.4 million units. It also created the

highest record since the COVID-19 pandemic in 2023 of 6.2 million motorcycle units.

The following is statistical data on motorcycle sales in Indonesia from 2019 to 2023.

Figure 1. Motorcycle Sales Data in Indonesia from 2019 to 2023

Source: Indonesia Motorcycle Industry Association (AISI)

6.478.460

3.660.616

5.057.516

5.221.470

6.236.992

1.000.000

2.000.000

3.000.000

4.000.000

5.000.000

6.000.000

7.000.000

2019 2020 2021 2022 2023

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Journal of Indonesian Social Sciences, Vol. 5, No. 10, October 2024 2637

Based on Figure 1, motorcycle sales drastically declined in 2020 during the COVID-19

pandemic. At that time, motorcycle sales were only at 3.6 million units. However, they increased in

2021 and 2022 even though sales have not returned to pre-pandemic times. They also experienced a

significant increase of around 1 million units in 2023. This increase reflects that people's purchasing

power is improving, positively impacting the two-wheeled vehicle market.

Of the 5 (five) AISI members, Honda, Suzuki, Yamaha, Kawasaki, and TVS brands, 2 (two)

brands dominate the Motorcycle Sales Market Share in Indonesia. The two brands are Honda and

Yamaha. Honda motorcycles became the best-selling brand throughout 2021, with sales of 3,928,788

units. Yamaha is in second place in the best-selling motorcycle market in Indonesia, with sales of

1,063,866 units. Furthermore, Kawasaki, Suzuki, and TVS are in third, fourth, and fifth positions. Sales

of 43,540 units, 18,380 units, and 2,942 units, respectively. (5 Million Motorcycles Sold Last Year,

What is the Best-Selling Brand in Indonesia? (detik.com) (accessed on May 05, 2024) Each has a

market share, as shown in Figure 2 below.

Figure 2. Market Share of Motorcycle Sales in Indonesia in 2021

Source: AISI (reprocessed)

There is an enormous demand for motorcycles in Indonesia because motorcycles are a cheap,

practical, and efficient means of transportation. In addition, Indonesia is a tropical country with a

population of 277 million people and an average per capita income of Rp 71 million, making it a

promising business for automotive industry business actors.

Nowadays, the competition of companies for consumers is no longer limited to the product's

functional attributes, such as the product's usability, but has been associated with brands that can

provide a special image to the wearer. At a low level of competition, a brand differentiates between

one product and another, or a brand is just a name. Meanwhile, at a high level of competition, brands

contribute to creating and maintaining the competitiveness of a product. Brands will be associated

with a specific image that can provide a particular association in the minds of consumers. In its

development, the company increasingly considers the brand its most valuable asset. According to

Keller and Swaminathan (2020), brands have existed for centuries to differentiate goods from one

Honda;

77,68%

Yamaha;

21,04%

Kawasak

i; 0,86%

Suzuki;

0,36%

TVS;

0,06%

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Journal of Indonesian Social Sciences, Vol. 5, No. 10, October 2024 2638

producer from another. According to the American Marketing Association (AMA), a brand is a name,

term, sign, symbol, or combination intended to distinguish a seller's goods or services from other

sellers' goods and services. Technically, whenever a marketer creates a new name, logo, or symbol

for a new product, they already create a brand.

Many companies refer to the brand as something that has created awareness, reputation,

excellence, and so on in the market. Brands, especially strong ones, bring several different types of

associations, and marketers must consider them all in making marketing decisions. One very

important aspect of a brand is its image, as reflected by customer associations. This is useful for

marketers to distinguish between a lower level of consideration and a higher level of consideration

related to judgment, feelings, and overall relationships.

So, it can be seen that the brand is very important in customers' eyes because the product and

the product name deliver good value to those who buy the product. PT Astra Honda Motor in

Indonesia realises that brand image is one of the most valuable assets that the company can control.

Delgado and Munuera (2005) stated that brand trust is the brand's ability to be trusted (brand

reliability), which comes from the consumer's belief that the product can fulfil the promised value.

The brand is intense (brand intention), which is based on the consumer's belief that the brand can

prioritise the interests of consumers.

The company must provide the best service quality to survive and retain customers' trust. The

creation of Customer Satisfaction can provide benefits, including the relationship between the

Company and the Customer becoming harmonious; the Customer will make a repurchase until the

Customer's friendship is created and form a recommendation from word of mouth that benefits the

Company. According to Wirtz and Lovelock (2016, p. 135), Because service is intangible, it is tough to

evaluate the quality of a service compared to an item. Consumers are more likely to experience the

process in an engagement, so a difference must be drawn between the actual service delivery process

and the service output. So Wirtz and Lovelock (2016, p. 136) define good service quality as a high

standard of performance that consistently meets or exceeds consumer expectations. Kotler et al., p.

(2022, p. 448) define Quality as the totality of the features and characteristics of a product or service

that deliver the ability to satisfy a need.

The company must satisfy customers with a brand image, trust, and good service quality.

Customer satisfaction can be felt after customers compare their experience purchasing

goods/services from sellers or goods/service providers with the buyers' expectations. These

expectations are formed through their first experience buying a good/service, comments from friends

and acquaintances, and promises and information from marketers and competitors. Marketers who

want to excel in the competition must pay attention to customer expectations and satisfaction. Kotler

and Amstrong ((2021, p. 35)) explained that customer satisfaction is a feeling of pleasure or

disappointment that arises after comparing the performance (results) of the product to the

performance (or results) that customers expect.

Of course, in addition to the aspects above, companies also need to manage and gain brand

loyalty. Brand loyalty is a significant factor in increasing a company's market share. When consumers

are loyal to the brand of the goods they buy, they will promote the brand to other consumers.

Schiffman and Wisenblit (2019, p. 138) define brand loyalty as a measurement tool to see how

often consumers buy the brands they consume and their commitment to buying them regularly. For

marketers, a high level of brand loyalty is the most desirable outcome of consumer learning and an