The Value of Customer Loyalty and Satisfaction in Antam’s Precious Metal Products (A Kano Model Analysis)

This researcher aims to map and analyze the customer loyalty and satisfaction of Antam's Precious Metal (LM) products through four categories of the Kano model. These include one dimensional or performance needs, must be or basic needs, attractive or excitement needs, and indifferent needs. This is a qualitative research with data obtained from interviews, observation and documentation. The study shows that the value of customer loyalty and satisfaction in Precious Metal products, referring to the Kano model analysis, is included in the one-dimensional or performance requirements. Here, the level of satisfaction is directly proportional to the performance attributes. This means that the performance attributes can affect the level of customer satisfaction. Pure Gold, as an Antam’s Precious Metal products, is not considered as must-be or basic needs. It is regarded as attractive or excitement needs due to the rapid development of PT. Antam which is strongly influenced by the quality and development of its product attributes, especially the precious metal products. This study proposes the formation of classification of customer satisfaction using the Kano model and customer loyalty so that it provides benefits in terms of the classification of customer satisfaction.


Introduction
To measure the level of marketing success requires two essential elements including 1) Customer satisfaction. The customer repurchase in the same company commonly has the potential to bring a large income for the company; and 2) Service quality, which is a priority to improve customer satisfaction. The service quality here means product service quality, place service quality, service basedpricing, and the quality of promotional or advertising services. If these services are effectively and efficiently implemented, they will bring a significant impact on product marketing.

In 1930, PT Antam through Unit Bisnis Pengolahan dan Pemurnian Logam
Mulia/UBPP LM (Precious Metals Processing and Refining Business Unit) began producing pure gold in bars and made significant changes to the design of the gold bars in 1968, 1974, 1989, 1994 and 2004. Due to the technology advances in 2011, besides changing the gold bar design to a portrait, the UBPP LM also used a latent image and blister packs on 50 gram and 100 gram gold bars in 2013. In continuation of the pure gold production, it made an innovation in term of creating a new Logam Mulia (Precious Metal) packaging design on July 30, 2018 at Hotel Indonesia Kempinski Jakarta. This new design was inaugurated by the ANTAM's President Director, Arie Prabowo Ariotedjo, as a remark to commemorate the 50th anniversary of PT Antam. As the Managing Director, he mentions one of the innovations made by PT Antams is renewing the Precious Metal (LM/Logam Mulia, n.d.) packaging design. Changes in the packaging design provide added value and protection for customers in creating an investment considering the product authenticity guarantee. The processing and refining conducted by PT Antam have been certified as a Responsible Gold by the LBMA (London Bullion Market Association). This certification is intended to avoid and prevent money laundering and human rights violations and conflicts.
Loyalty is an on-going positive relationship as a result of brand trust. The higher the customer trust, the higher the customer loyalty will be. Customers who have trusted a brand are unlikely to defect to another brand, especially if it does not offer better service (Istiqomawati, 2017 Customer satisfaction is the level of customers' feeling of happiness after comparing what they receive with what they expect. A customer who is satisfied with the value offered in a product or service is very likely to become a customer for a long time. (Umar, 2005) The model Kano is aiming at classifying the attributes or features of specific products or services based on how good they are able to satisfy the needs of their customers. The attributes are classified into the following categories: must-be or basic needs, one-dimensional or performance needs, attractive or excitement needs, and Indifferent.
In this study, the author takes one product that has high sale rate and expensive price but does not cause the costumers to defect to another product, for it has provided excellent customer service and satisfaction. The product referring to here is the gold bar or gold bullion offered by PT. Antam.
Based on the above description, the author intends to review and analyze the followings; PT Antam's Pure Gold Products, its growth, Customer Loyalty including its definition and factors, Customer Satisfaction consisting of its definition, factors, and methods of measuring Kano Model Analysis, and the Value of Customer Loyalty and Satisfaction in Antam's Pure Gold Products using Kano Model Analysis.

Method
The type of research in this article is qualitative research. While The source of the data is primary data sources and secondary data sources. Primary data sources include the data from interviews result, observation and documentation, as well as primary references about the Kano model. Meanwhile, secondary data sources include Supporting data of research from both journal articles and books that are relevant to this matter. related question points: the reasons for buying LM Antam products compared with other products, how often do they buy Antam LM products, the benefits of Antam's LM investment, why are they satisfied with Antam's LM products.
In the seller's aspect, several points of question are raised, such as LM products which are the most sold, the majority of the reasons consumers buy Antam's LM products and which ones are more profitable to sell LM Antam or LM products from other or non-products.
Meanwhile, observations were made on Antam's LM sale and purchase activities, particularly on repeat purchases of the same product. The documentation is carried out to retrieve documentation related to research, both related to Antam's products, Antam's LM sales and documentation in the form of photographs.
After the data has been collected, then the researcher analyses the collection of the data, through several stages of data analysis, namely display data, data reduction, data analysis and conclusion.
After the interview has been completed, the researcher displays the data that has been obtained by transcribing the results of the interview. After transcribing the results of the interview, Often the data is abundant and exceeds the data that the researcher wants, so the researcher makes data reduction, namely selecting and sorting which data is needed by the researcher and which is the data is not needed by the researcher.
After the data reduction, then the researcher analyzes the data on the reduced data using qualitative descriptive analysis with used the perspective of the Kano model, namely the four perspectives that the author has described above.

Results and Discussions
Product Description

PT Antam's Pure Gold Products
This new design offers various sizes of gold bars, from the smallest to the largest sizes of gold bars; 0.5 gram, 1 gram, 2 gram, 3 gram, 5 gram, 10 gram, 25 gram, 50 gram, and 100 gram gold bars one of the distinctions between the old and new design is in term of size, which is more expensive for each bar for the same weight. In this regard, PT Antam response to such market demand which tends to choose a larger dimension or size of gold bars.
Besides, the latest pure gold bars are now marked with Certicard technology which has barcode as a certificate to check the product authenticity and the year of production. In the end, this innovative packaging design can increase the sense of security for the customers in investing in gold bars. The followings are examples of Antam gold products. As a precious metal, LM Gold is classified into Gold Cast Bar and Minted Gold Bar. It is pure gold which has the purity standard of 99.99% and can be used as a raw material to make or produce 14 to 24 karat jewellery, in which the purity level is equivalent to its gold content. The Gold Cast Bar has a shape and size larger than the Minted Gold Bar ranging from 250 gram to 12,500 gram. (Logam Mulia, n.d.) In the meantime, the Minted Gold Bar is pure gold with a relatively small size consisting of 0.5 gram to 100 gram. Here, each item offers convenience and security to investors in terms of storage or disbursement and tradable throughout Indonesia and globally. The possession of Antam's pure gold is undoubtedly guaranteed with a certificate that matches the purity, grade or karat of the gold and according to its various weight or size. The following table illustrates the specifications of Antam's gold bar dimensions in Vertical or Portrait designs:  The Growth of PT. Antam PT. Antam has made significant growth seen from its balance sheet from year to year. This section describes and draws a summary of the growth and development of PT. Antam. In term of Antam's product sales, gold is one of the most significant selling products as illustrated in the following figure: Referring to the above figure, Gold and Silver are the commodities with the highest sales among all Antam's products. Here, the sales of gold and silver have reached 61%. In export, for example, the domestic sale of gold shows 33%, whereas the export sale reaches 67%.
The PT Antam's significant growth is inseparable from customer loyalty and satisfaction which has led it continuous and progressive increase each year. Regarding customer loyalty and satisfaction, The author will illustrate it in the next section.

Definition of Customer Loyalty
Gremler and Brown (Gremler & Brown, 1996) define Loyalty as the degree to which a customer shows repeat purchasing behaviour from a service provider, has a disposition or positive attitude towards the service provider, and only considers using the service provider when in need. Referring to the definition presented by Gramer and Brown, a loyal consumer is not only a buyer who makes a repeat purchase but also maintains a positive attitude towards service providers or products (Utomo, 2006).
According to Sutisna (Sutisna, 2003), customer loyalty is classified into two categories; brand loyalty and store loyalty. She adds customer loyalty regarded as "a measure of a customer's likeliness to repeat purchase with a company or a brand over time." http://journal.uinjkt.ac.id/index.php/iqtishad https://doi.org/10.15408/aiq.v12i1.17028 Further, Oliver (Richard L Oliver, 2010) mentions consumer loyalty as a high commitment to repurchase a desired product or service in the future, in addition to the influence of situation and marketing efforts in changing purchase behaviour. In other words, customers are likely to be loyal by making repeat purchases on an on-going basis.
In another sense, Wahyu Nugroho (Nugroho, Adi, Wahyu, Sudaryanto, 2013) says consumer loyalty is a measure of loyalty from customers in using a product or service from a particular brand at a specific time and in a situation where many choices of products or services are available to meet their needs and they have the ability to find their desired product or service.
In short, referring to the several definitions above, customer loyalty is the loyalty of customers presented in a consistent purchase of a product or service at all times and showing a good behaviour by recommending the product or service to others. An indication of loyalty requires attitude measurement and behaviour change.

Factors Affecting Customer Loyalty
Several factors can affect customer loyalty. Aaker, for example, mentions the followings as variables that can influence consumer loyalty. (Joko. Riyadi, 1999) First: Satisfaction, Costumers are likely to be loyal to a product if they are satisfied with it. Therefore, try several types of products and give some criteria for satisfaction. If, for example, they show a satisfactory response after trying the product, it means they are satisfied and are likely to decide to purchase the product consistently at all the time. In other words, customer loyalty has been made for the product.
Second: Habitual Behaviour, Customer loyalty is built or created from customer habits. If what the customers do is a habit, they do not need a longer time to make a purchase decision. In this condition, they are said to continue to buy the same product over time. In other words, they will continue to repurchase the same product and do not tend to defect to another.
Third: Commitment, There are a large number of customers who been committed to making a repeat purchase for a healty product. Here, customer loyalty will rise if the customer trust in a product takes place. Communication and interaction among the costumers by making a recommendation, for instance, will lead to loyalty. of likeness on a certain product or service and confidence, in turn, will be built especially after the product performance is evident. The customers who are said to be loyal are those who repeatedly buy the product not because of special offers, but they believe that the product has the same quality and offer the same level.
Fifth: Switching Cost, Switching costs are the costs that a customer incurs as a result of changing brands, suppliers, or products. The customer may incur the risk of failure, cost, energy, and physical sacrifice as he/she chooses a product.
If the transfer costs are high, he/she will be more careful to defect to another product due to the risk of failure which is also high. For this reason, as a customer, he/she tends to be loyal eventually.

Definition of Customer Satisfaction
According to Philip Kotler and Kevin Lane Keller (Kotler & Keller, 2009), Consumer Satisfaction is a feeling of pleasure or disappointment which results from comparing a product's perceived performance or outcome against his/her expectations.
Satisfying customers with their needs is the dream of every company. Besides being an essential factor for the survival of the company, it can also increase their competitive advantage. Those who are satisfied with a product and service tend to repurchase and reuse it when they have the same need in the future. This means satisfaction is a critical factor for the customers in making repurchases and the most considerable portion in a company's sales volume.

Factors Affecting Customer Satisfaction
In determining the level of customer satisfaction, Swastha and Handoko mention five critical factors as follow: (Joko. Riyadi, 1999) The first: Product Quality, good product quality will directly affect the level of customer satisfaction. If it continues, it will lead to loyal customers who keep buying or using the same products. Such a condition is known as customer loyalty.
Second: Service Quality, it generally refers to a customer's comparison of service expectations as it relates to a company's performance.
Third: Emotions, emotions here is interpreted as the sellers' belief to do better in their business. In turn, this belief will bring ideas that can improve their business. Fourth: Price, people certainly expect an excellent item at a lower or cheaper price. In this regard, the price here is interpreted as a result. This means, with high price comes a result of excellent product quality and good service quality.
Fifth: Costs, people think companies that take liberty to spend a lot of costs for product promotion or production must maintain their quality. As a result, customers will be more loyal to the products they have produced.

Method for Measuring Customer Satisfaction
According to Philip Kotler in his book entitled Total Quality Management, there are several methods used to measure customer satisfaction as follow: (Fandy Tjiptono, 2007) First: Complaints and Suggestion System, Customer-centric organizations provide broad opportunities for customers to provide suggestions and complaints. The suggestions and complaints can give bright ideas for the company to make innovations and enable it to responsively and immediately overcome problems that arise among its customers.
Second: Ghost shopping. One way to get a picture of customer satisfaction in a company is to hire several people to act as potential buyers. In turn, their inputs about the strengths and weaknesses of the company's and competitors' products based on their experience in making purchases are accommodated for the company's advantage. In addition, ghost shoppers can also observe how to handle each complaint.
Third: Lost customer analysis, A company should contact any customers who have stopped buying its product or service or those who have defected to another company to understand the reasons why they have a change of mind. Besides an interview regarding the reasons for defecting or switching to another company, monitoring customer loss rates also play a significant role. Here, the increase in customer loss rates indicates the company's failure to satisfy its customers.
Fourth: Customer Satisfaction Survey, Generally to find information about customer satisfaction, a survey by mailing, telephone, or direct interview can be conducted. A company will get responses and feedbacks directly from its customers. In addition, this approach is taken to show a positive sign that the company is paying attention to its customers.

Kano Model Analysis
Noriaki Kano developed the Kano model analysis in 1984. (Kano et al., 1984) This model aims at classifying the attributes or features of specific products or services based on how good they are able to satisfy the needs of their customers. The attributes are classified into the following categories: must-be or basic needs, onedimensional or performance needs, attractive or excitement needs, and Indifferent.
In must-be or basic needs, customers are likely to be dissatisfied if the performance of the attributes is low. Here's the deal with this category; a company need to have these attributes, but that won't make its customers more satisfied. They just won't be dissatisfied. (Jacobs, 2019) Regarding the one dimensional or performance needs, the level of satisfaction is closely related to the performance attributes; the more we provide, the more satisfied our customers become. (Fandy Tjiptono, 2007) This means high performance will result in high customer satisfaction.
In attractive or excitement needs, the level of customer satisfaction will increase significantly if the performance attributes rise. (Nofirza & Indrayani, 2011) Lastly, in the indifferent category, customers do not care about the attributes offered. This shows the presence or absence of the attributes will not affect the increase or decrease in the level of customer satisfaction.
The following figure illustrates the pattern of Kano Model Analysis:  Over two decades have passed since the introduction of the Kano model. According to the large number of studies that have been published ever since, and especially in recent years, the Kano model does not seem to have lost its fascination among marketing practitioners and researchers. (Mikulić, 2007) For this reason, the Kano model is very relevant to apply toanalyze the value of loyalty and customer satisfaction. In this case, the author uses this Model to analyse the value of loyalty and customer satisfaction in Antam's Precious Metals (LM) products.

Products in Kano Model Analysis
Referring to the above description, the author attempts to analyse customer loyalty and satisfaction in Antam's products by applying the Kano Model analysis. Before conducting the analysis, the author collects and describes the value of customer loyalty and satisfaction through observation and interview with some Antam buyers and sellers.
Given the results of the observation and interview, the author analyses the customer loyalty and satisfaction from a theoretical point of view using the Kano Model Analysis perspective.
In term of the research period, the author has conducted field observation for approximately two months, starting on February 23, 2020 to April 23, 2020. In addition, the author also interviews with Antam's gold sellers and customers.
In this study, the interview is done with three of Antam's gold customers and three Antam's gold sellers. The customers are Mrs Tiyas, Mrs Salwa and Ms Dini Auliani Pratiwi, whereas the sellers are Mr Arif Rahman, Mr Lukman Hakim and Ms Nur Chumaidah.
The three Antam's gold customers mention the reason they have chosen Antam's gold over other gold bars because they are certain about its authenticity. There are fake gold bars or mixed gold jewellery which is made and even sold by some shops. Here, the purity of gold is not easy to detect, except by the experts.
Antam's gold has been trusted and proven to be 99.99% fine gold. This means the gold is pure and is not mixed with a component. In addition, the gold content has also been written in a certificate equipped with a barcode feature, which enables the customers to check its authenticity. The following statements are generated from the interview with the customers: I prefer Antam's gold bar product due to its guarantee and authenticity. The gold bar has now been equipped with a barcode scan feature. This indicates that its authenticity is more guaranteed. (Dini Auliani Pratiwi, 2020) Besides, Antam's gold has legal distribution and provides more authenticity compared to ordinary gold bars. We are not sure if they are made from pure gold or mixed with another component. Reportedly, 80% of gold miners are dishonest. (Dini Auliani Pratiwi, 2020) Another reason the customers decide to pick Antam's gold bar is that PT Antam has official stores distributed in some regions. If, for example, the store is unavailable in a region, the majority of gold shops can receive Antam's gold sales: I prefer Antam's gold bar due to its guarantee and authenticity. It has been trusted and the PT Antam has official stores which are distributed in several regions throughout Indonesia. (Salwa, 2020) Additionally, to check its authenticity is easy and its sales are available and accepted anywhere. It does not have to be at Antam's point of sale. The selling price is also according to the stated buyback price. (Salwa, 2020) Surprisingly, the last customer mentions she picks Antam's gold bar product for an emotional reason. She seems to have already been fanatic about the product although there are other cheaper gold bar products: In term of price, UBS is cheaper, but I prefer Antam's gold bar. (Tiyas, 2020) On average, the customers have already been familiar with that the selling price of Antam's gold bars is higher than that of other Antam's products. However, they tend to choose the Antam's gold bars anyways: Because the resale or buyback price of Antam's gold is more promising and more stable, even though the purchase price is higher compared to other Antam's products. (Dini Auliani Pratiwi, 2020) PT Antam's precious metal competitors including Lucky Joint (UBS), EOA (Emas Optimasi Abadi) Gold, Mini Gold and ordinary (Unbranded) gold bars have not been able to compete with it although their purchase price is lower.
In addition to the customers' perspective, the author has also interviewed with some of Antam's precious metal sellers. They are Mr Lukman Hakim, Mr Arif Rahman, and Ms Nur Chumaidah.
Although official stores for other brands' gold bar products are available, the majority of customers are still looking for Antam's gold product as a choice. (Lukman Hakim, Arif Rahman, 2020) According to the sellers, the reasons the customers pick Antam's gold as a choice, on average, include the purity guarantee in term of a certificate, sound design and more quality.
In regard to profit, the gold sellers say selling Antam's precious metal is more profitable because they can set the price depending on the weight. They seem fine even though the purchase price is far higher than UBS: All gold bars are equally profitable. Here, the purchase price of Antam's precious metal is more expensive than that of UBS. (Arif Rahman, 2020) Good design and purity guarantee in term of a certificate from PT. Antam also charge fees depending on the weight. (Lukman Hakim, 2020) Antam's precious metal has a higher quality which is certified and recognized globally and has been around for a long time. If you buy Antam's precious metal, the transaction is easier. (Nur Chumaidah, 2020) In Kano Model analysis, the value of customer loyalty and satisfaction found in the study is seen from four aspects of the Kano model categories; must-be or basic needs, one dimensional or performance needs, attractive or excitement needs, and Indifferent. To make it easier to understand the four categories in the aspects of LM Customer loyalty and satisfaction, the researcher write in the following table: Must be (basic

needs)
The factor of LM Antan attribute is highly correlated with the increase in the value of customer loyalty and satisfaction customer satisfaction will increased considerably above neutral with the high performance of these attributes. So that LM Antam products do not fall into the must be or basic needs category 2.
One dimensional

(performance needs)
It is the level of satisfaction that is linearly related to the attribute performance, where the high performance of these attributes shows the high value of customer satisfaction The values of Loyalty customer and satisfaction of LM Antam's are in the one dimensional category or performance needs.

needs)
A decrease in the value of customer loyalty and satisfaction will occur, if the attribute performance will decrease and consumers will switch to competitors who have high attribute performance. Based on the analysis on the table, the value of customer loyalty and satisfaction in Antam's Precious Metal is included in one-dimensional or performance needs. This means the level of satisfaction is closely related to the performance attributes. The higher the performance attributes, the more satisfied the customers will be. The results of observation and interview in this study show the majority of customers choose Antam's gold bar product due to its attributes which include packaging design, legality, service and convenience. Only one customer leads to the Indifferent category. When the author asks about the product attributes that attract him/her to make Antam's purchase, he/she is no longer attached to the Antam's product and switches to another product instead.
Antam's Precious Metal in term of gold bar product is not considered as must-be or basic needs, attractive or excitement needs, and indifferent due to the following reasons: First: the rapid growth and development of PT. Antam is strongly influenced by the quality and development of its product attributes, especially Antam's gold bar product. This product cannot be generalized and treated similar to other Antam's products including Nickel, Bauxite and Iron Sand. In the case of iron sand product, for example, the presence or absence of its attributes issued by PT. Antam will not affect the increase or decrease in the level of customer satisfaction. For this reason, Antam's gold product is not included in the Indifferent category.
Second: the attributes of Antam's precious metal are positively correlated with the increase in the value of customer loyalty and satisfaction. To that end, customer satisfaction will increase far above the average due to the high performance of the attributes. This is another reason why Antam's precious metal products are not classified as must-be or basic needs.
Third: on the contrary, if the performance attributes experience some decline, especially in Antam's precious metal products, there will be a decrease in the value of customer loyalty and satisfaction. Consequently, the customers will turn or defect to its competitors that have high performance attributes. Therefore, Antam's precious metal products cannot be regarded as attractive or excitement needs that do not tend to experience a decrease in the level of customer satisfaction when the performance attributes are not satisfactory enough.

Conclusion
In conclusion, the Kano model analysis has developed for a long time since 1984 and has attracted many economists to apply it. This model aims at classifying product or service attributes as a benchmark for an excellent product to meet customer satisfaction. These attributes are classified into four categories; must-be or basic needs, one-dimensional or performance needs, attractive or excitement needs, and Indifferent. The author has decided to use the Kano Model to analyze the value of customer loyalty and satisfaction in Antam's Precious Metal (LM) products due to its influences especially in analyzing the value of loyalty and customer satisfaction. In addition, the author describes the data about the value of customer loyalty and satisfaction which is collected through observation and interview with three Antam's gold bar product buyers and three Antam's gold bar product sellers from a theoretical point of view using the Kano Model analysis.
Referring to the interview with the three Antam's gold product customers, the main reason they choose Antam's gold bar over other brands' product is that they are certain in the purity of Antam's gold content which is 99.99% authentic compared to other gold bars. The others are assumed to be mixed or impure. The authenticity of Antam's gold bar is officially stamped in a certificate equipped with a barcode feature to enable the customers to check its authenticity easily.
In the meantime, according to the three Antam's gold sellers, the majority of consumers prefer Antam's gold bar product to other brands' gold bar products for some reasons including the purity guarantee, an official certificate, a good design and more quality. Regarding profit, the sellers say selling Antam's precious metal is more profitable because they can set the price depending on the weight. They seem fine even though the purchase price is far higher than UBS.
Based on the analysis, the value of customer loyalty and satisfaction in Antam's Precious Metal is included in one-dimensional or performance needs. This means the level of satisfaction is closely related to the performance attributes. The higher the performance attributes, the more satisfied the customers will be. The results of observation and interview in this study show the majority of customers choose Antam's gold bar product due to its attributes which include packaging design, legality, service and convenience. Only one customer leads to the Indifferent category. When the author asks about the product attributes that attract him/her to make Antam's purchase, he/she is no longer attached to the Antam's product and switches to another product instead.
Antam's Precious Metal in term of gold bar product is not considered as must-be or basic needs, attractive or excitement needs, and indifferent for some reasons: First, the rapid growth and development of PT. Antam is strongly influenced by the quality and development of its product attributes, especially Antam's gold bar product. Second, the attributes of Antam's precious metal are positively correlated with the increase in the value of customer loyalty and http://journal.uinjkt.ac.id/index.php/iqtishad https://doi.org/10.15408/aiq.v12i1.17028 satisfaction. To that end, customer satisfaction will increase far above the average due to the high performance of the attributes. This is another reason why Antam's precious metal products are not classified as must-be or basic needs. Third, on the contrary, if the performance attributes experience some decline, especially in Antam's precious metal products, there will be a decrease in the value of customer loyalty and satisfaction. Consequently, the customers will turn or defect to its competitors that have high-performance attributes. Therefore, Antam's precious metal products cannot be regarded as attractive or excitement needs that do not tend to experience a decrease in the level of customer satisfaction when the performance attributes are not satisfactory enough.