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CHAPTER 1
INTRODUCTION
Golf in general not only falls into the category of sport activity, as it now becoming a
‘stress free’, relaxing activity and business opportunity played by
most of the
people
or
golf
player in Indonesia especially with the breathtaking tropical climate setting, making it an
amazing
golf
courses
landscape.
Players
from
different
age
level
have
their
individual
perspective of an excellent golf club that could cater their needs. These trend and needs from the
customers transform the expectation and perception of the service from golf industry. In order to
survive this phenomenon, golf industry battles it way in delivering the best services to its
demanding customer. improvement
Customer satisfaction basic idea
is to create
value exceeding
the cost of performing
the value
(Porter, 1999). It has been acknowledged by the customers that have been exposed to the various
service quality provided by the competitive golf club presence in Indonesia. Therefore, in order
to stay competitive in the market, we need to further analyze the level of quality to enhance the
deliverance of quality to the customers. The question
is what kind of quality that the customer
really wanted.
1.1 Industry Overview
It started in early 1990’s,
golf courses started to
have extensive variety that are being plan
and built, so as the result there still few of the appropriate golf courses that are available in the
industry. Furthermore, the strict membership was pretty expensive ranging from $50,000 to over
$100,000, consequently only for members are allowed to access (Dennis G. Kloeth 2011)
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Today, Indonesia has become the
world class
golf club that has been
long waiting
for,
as
from the past 20 years golf courses have grown from 60 courses to more than 130 courses and it
also provides well trained and professional caddies. Each caddies has their own standard, which
could cater the request of the player and also knowledgeable with the courses. Furthermore, the
trend of membership had faded which means they favor more in the “walk-in” (the term used by
paying green fee rather than buying a membership)
The positive impact of golf industry towards Indonesian economy can be seen firstly from its
domestic
golf travel industries
with their
need to cater the niche market
solely targeting
neighboring countries business man such as from Malaysia and Singapore that are frequent flyer
to Indonesia
for
business
purposes
and
playing
golf.
Furthermore,
the
positive
relationship
between golf and business according to HSBC’s survey indicates “A good place to take clients
and
make business deals
is the reason
why
they
go to
the green and play
golf” also 90% of
Indonesian players feels that they are closer to colleagues and seniors in the company.
Surprisingly,
Golf
is
played
more
often
every
week
in
Indonesia
with 62%
of
them
playing every week compared to other five countries (Thailand, Vietnam, Cambodia, China, and
Singapore) with the average of 21% (figure1.2)
Figure 1.1 frequency of playing golf in Indonesia
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However,
with
the
importance and
opportunities of
close
business
deals,
in
terms
of
promoting
Indonesia
golf,
Indonesia
is
still
far
behind
from
the
neighboring countries
such as
Thailand,
Vietnam,
Cambodia and China
(Dennis G. Kloeth 2011). Thailand could attracts more than 200,000 foreign
golfers
annually, collecting
astounding amount
of $500million
in
the
process,
followed
by
a
relatively new comer, China, it could already attract 100,000 foreign golfers annually, while
sadly, Indonesia attracts not even 10,000 golfers annually and behind the reason is simply the
poor promotion from the marketing professionals.
On the other hand, Indonesia’s golf industry has realize the problems that they encounter and as
the counter attack they come together with the ministry of tourism and local
tourism boards of
Jakarta, Surabaya and Bali in order
to
establish
a
sustainable golf tourism
strategy that will
assured Indonesia’s position to be Asia’s most attractive golf destinations. Therefore, this
research
will consist of
improvement
in
golf clubs that are based
in delivering the best service
quality to the customer and will take place in one of Indonesia’s golf club located in Karawang
named Karawang International Golf Club (KIGC).
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1.2 Company’s Overview
Karawang International Golf Club (KIGC) was first established in October 29, 1993 and
located in Jl. Bukit Indah Golf No. 1 Karawang - Jawa Barat, Indonesia. KIGC offers 27 holes of
championship golf along with three nine-hole courses such as Jasmine, Lotus ad Orchid,
designed by a Japanese designer Naoyuki Saito.
Figure 1.2 KIGC Loby
Figure 1.3 KIGC Map
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1.2.2 Company’s Product and services
Karawang International Golf Club (KIGC) is a service company that runs a Golf club
industry. There are various services and facilities offered, such as:
?
Restaurant:
the
club
house
restaurant
serves
a
large
variety
of Japanese,
Indonesian
and
International cuisine awaits you after your game. It is located on the second floor
Figure 1.4 Restaurants
Figure 1.5 Restaurant Bar section
Pro-Shop: You will meet friendly people at the information desk and a wide collection of
golfing products. Provides balls, tees, shoes and others merchandises for playing golf
Figure 1.6 Pro shop
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•
Cart:The Club prepare 120 golf-carts
Figure 1.7 Golf carts
?
Driving Range :10-bays driving range and practice greens for players to warm up before golf
Figure 1.8 Driving range
?
Locker room: A spacious locker and Japanese style bathroom and toilet will freshen you after
a fulfilling game
Figure 1.9 Toilet room
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1.3 Problem Statement
According to Mr. Krisna Dani, director of KIGC, he stated that KIGC
is planning on
rejuvenating the entire Golf Club so he wanted to know the performance of the Golf club based
on the customers’ perspective and how well they have done their job.
1.4 Research Question
The problem of wanting to know the performance of the golf club, brought out to my research
question. Therefore my research question
would be:
“what are the customers perceived service
quality and what dimensions of service quality that are expected from KIGC’
1.5 Research methodology
This study mainly utilize SERVQUAL instrument to assist us to assess service quality in
KIGC through
survey
from the questionnaires.
This
model
represents
the
difference between
customer’s expectation of
how
an
excellent
golf
club should perform and
their
perception
in
terms
of
performance
in
Golf
Club
visited,
using
various
dimension
(tangibles, reliability,
responsiveness, assurance and empathy). Moreover, Importance-Performance Analysis is also
utilizing to deliver insight to the company
1.6 Aims and benefits
The goal to this study is to refine current understanding of KIGC’s customer. The new result
would discover further what the KIGC’s customer really need and want, thus the company could
implement
strategies
suited
to
fulfill
the
customer
needs
and
wants.
The benefits
for
KIGC
would be as follow:
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1. Increase customer’s perception
2. Retaining existing customer
3. Multiple visit by customer means an increase in net income for the company
4. Establish brand image
5. Word of mouth
1.7 Structure
This applied research project is composed of five chapters of which are:
Chapter 1 – This chapter is divided into the background of the company,map of
the company,
product and service, problem statement , aims and benefits ,objective and structure of this project
Chapter 2 - This chapter
consist of
the
literature revieww that emphasize on the fundamental
theories definitions that are applicable for the research
Chapter 3 – This chapter consist of research methodology pretesting , sampling and data
collection method
Chapter 4- This chapter consists of
the result and analysis of
the
survey
findings
that covers
demographic, 22 service quality queastions, gap analysis and Importance perfomance analysis
Chapter 5- This
chapter will discuss
the conclusion,
recommendation,
limitations
and
further
suggestion
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