European Scholar Journal (ESJ)

Available Online at: https://www.scholarzest.com

Vol. 2 No. 1, February 2021
ISSN: 2660-5562 

“The Influence Of Services And The Physical Environment Of Traditional

Markets On Consumer Satisfaction"
Nadhirah Septiana Dewi Paemo1
Management Study Program, Faculty of Economics, State University of Gorontalo, Indonesia
Email:
Nadhiraseptiana16@gmail.com

Tineke Wolok S.T., M.M2

Management Study Program, Faculty of Economics, State University of Gorontalo, Indonesia
Email:
sriindriyani_dai@ung.ac.id

Zulfia K. Abdussamad S.E., M.SI3

Management Study Program, Faculty of Economics, State University of Gorontalo, Indonesia
Email:
zulfia@ung.ac.id

Article history: Abstract:

Received: This study aims to analyze 1) Analyzing the effect of service on customer
Accepted: satisfaction in Andalas Market, Gorontalo City, 2) Analyzing the effect of the
Published physical environment on consumer satisfaction in Andalas Market, Gorontalo
: City, 3) Analyzing the effect of service and physical environment on customer
satisfaction in Andalas Market, Gorontalo City. . Sampling technique using
Snowball Sampling as many as 97 respondents. Data collection techniques in
this study used a questionnaire by conducting interviews. The analytical test
tool used in testing this research is multiple linear regression test. The results
of the t test (partial) show that 1) the service variable has no effect on the
customer satisfaction variable as shown by the t-count value of 1.192 <
1.66123 t table. 2) the physical environment variable has an effect on the
consumer satisfaction variable as indicated by the t-count value of 7.176 > t-
table 1.66123, while the results of the F-test study show the F-count40,458>
F table 3.09 with a significance level of 0.05. This means that the service and
the physical environment simultaneously affect the satisfaction of consumers
who shop at Andalas Market. Based on the calculation of the coefficient of
determination shows R Square of 46.3%, categorized as sufficient, it can be
concluded that the service and the physical environment of the market
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simultaneously affect customer satisfaction in Andalas Market. For the

remaining 53.7% influenced by other variables not examined in this study
such as price variables, product quality.
Keywords: Service, Physical Environment, Consumer Satisfaction

INTRODUCTION

The market is a gathering place for buyers and sellers of certain goods and services. The buyers as a
group determine the demand for the product and the sales as a group determine the supply of the product
(Mankiw, 2007). In accordance with the times, the wider community is more familiar with the types of markets,
namely traditional and modern markets.
In general, consumers choose traditional markets that have a strategic location, such as in the middle of
the city, or close to residents. The election is expected to be easily accessible by private vehicle or public
transportation. Consumers in the lower-middle class who do not have private vehicles more often shop at
traditional markets because they are more efficient in transportation costs.
Consumer satisfaction is the attitude shown by consumers towards goods or services after they obtain and
use them (Fandy Tjiptono in Ratna Cahyani S, Ernawati and Edi Wibowo, 2013).Satisfaction is the final level of
utilization of facilities or services. this is adjusted to the expectations that have been targeted. This customer
satisfaction can be said to be an important point of a business by a service company. This is what a service
company aims for where customers feel that their expectations for all service quality and facilities can be met
properly (Rahadian Syera Rita Efendi, 2018).
Service is an activity or a series of activities that are invisible that occur as a result of interactions between
consumers and employees or other things provided by service providers that are intended to solve
consumer/customer problems (Mahmoedin, 2010).
The layout (store layout) can have a big impact on consumers. At the most basic level, layout affects
factors such as how long the customer will be in the store, how many products the customer has eye contact
with and which path in the store the consumer will take. These factors can influence what and how a purchase is
made (Peter and Olson, 1999:461). Store atmosphere includes lighting, ceiling height, temperature in the store,
colors, music, shelf space and displays.
Andalas market is a traditional market in the city which is located in the city of Gorontalo. This market
often interferes with public access to several housing estates because it is caused by haphazard parking of
vehicles on the side of the road and some of the streets are used for selling. Andalas market operates 2 times a
week, namely Wednesday and Saturday. Cleanliness is still a problem in Andalas Market, besides that some
sellers pay less attention to consumers, especially when the market is crowded.
Based on the description, the researcher is interested in taking the title "The Effect of Services and the
Physical Environment of Traditional Markets on Consumer Satisfaction"
Consumer Satisfaction Satisfaction can be interpreted as an effort to fulfill something or make something
adequate” (Fandy Tjiptono and Gregorius Chandra, 2005: 195). Meanwhile (Philip Kotler, 2007: 61) defines
"satisfaction as a feeling of pleasure or disappointment someone experienced after comparing the perception of
performance or results of a product with his expectations". From the definitions above, it can be concluded that
there is a comparison between expectations and performance/results perceived by consumers. Consumer
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expectations are formed and based on several factors, including past shopping experiences, opinions of friends
and relatives, and information and promises of companies and competitors. "Customer satisfaction or
dissatisfaction is the customer's response to the evolution of the perceived discrepancy/disconfirmation between
previous expectations (or other performance norms) and the actual perceived performance of the product after
its use" Tjiptono (2008:24). indicators related to customer satisfaction according to (Tjiptono, 2011), namely:
1) hope confirmation,
2) Interested to visit again
3) overall customer satisfaction
4) consumer's willingness to recommend to others
Service
Service or service is any action or deed that can be offered by one party to another, which is basically
intangible and does not result in ownership of anything (Tjiptono, 2002). The production of services can be
related to physical or non physical products.
Services are all economic activities whose results are not products in physical form or construction. Services
are generally consumed at the same time as when they are produced and provide added value or solutions to
problems faced by consumers (Lupiyoadi, 2013). The indicators of service according to (Tjiptono, 2002: 5) are:
1) Fast seller service, namely the quality of service provided to consumers whether it is quite responsive.
2) The attitude of the seller is friendly, namely the quality of service provided to consumers, is it friendly in
offering goods in order to attract consumers?
3) Emphasizing on customer satisfaction, namely the quality of service provided to consumers is maximized so
that consumers are satisfied with the services provided by traders.
4) There is a place for criticism and suggestions, namely the quality of service provided to consumers has
provided a suggestion box to make it easier for consumers to give opinions on service quality.
Physical Environment
According to Suhartanto (2018), that the physical environment is an aspect that must be utilized by the
company because it can create a sense of comfort, tranquility and good work results so that it can improve the
performance of a company organization (Suhartanto, 2018). The physical environment can occupy space (spatial
element) or do not occupy space (nonspatial). The physical environment that occupies space includes all physical
objects: products, brands, stores, shopping centers, countries, and geographic locations.
Physical environment that does not occupy space are all objects that are not physical, such as time,
weather, humidity and noise levels. The physical environment of a retail store can be in the form of an
information physical environment or a store environment (Suwarman, 2003).
According to (Sutisna, 2003: 156). Physical Environment, indicators:
1) A comfortable place is how to attract consumers to shop by providing a comfortable place to shop.
2) The layout of the room is how to arrange a good and organized place to make it easier for consumers to shop.
3) The physical form of the place is how to attract consumers to shop by fulfilling good and comfortable facilities
and infrastructure for shopping.
4) The parking lot is how to arrange the parking area for consumers to feel comfortable and calm when placing
their motorbikes in the parking lot.
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Physical Environment Information (Product Information)

Product information is very important because it is needed by consumers to make purchasing decisions.
Therefore, store managers must do the following things (Suwarman, 2003):
a. Availability of information
b. Information formation
c. Information form
Research Hypothesis
The hypothesis is a temporary answer to the research problem formulation based on the relevant theory
Sugiyono (2018: 59). The hypothesis in this study is as follows:
Ha1: Service has no positive and insignificant effect on customer satisfaction in Andalas Market. Ha2: Physical
environment has a positive and significant effect on consumer satisfaction in Andalas Market.
Ha3: Service and Physical Environment have a positive and significant effect on customer satisfaction in Andalas
Market
METHODOLOGY
Research design
The type of research used in this research is causal associative research because it analyzes the causal
relationship, namely the independent variable (X) affects the dependent variable (Y). The approach used in this
research is a quantitative approach.
This research was conducted in Andalas Market, Tapa Village, Sipatana District, Gorontalo City to determine
customer satisfaction.
Population and Sample
The population selection in this study are consumers who have or are currently shopping at the Andalas
Market, Gorontalo. The sample selection is done by using snowball sampling. Snowball sampling is a technique
for determining a sample that is initially small in number, then becomes large. In determining the sample, first
one or two people are selected, but because these two people do not feel complete with the required data, the
researchers look for other people who are considered more understanding and can complete the data provided
by the two previous respondents (Sugiyono ,2017). To determine the number of unknown populations, the
Cochran formula is used in determining the sample as follows (Sugiyono, 2017):

Z 2 pq
Where:n
E2
n : Number of samples required
Z : The level of confidence required in the sample, which is 95%
p : Probability of Right 50%
q : 50% chance of wrong
Moe: Margin of Error or the maximum level of error that can be tolerated. The confidence level used is 95%
where the Z value is 1.96 and the maximum error rate is 10%. The number of sample sizes in this study is
as follows
( 1,96 )2 ( 0,5 ) (0,5)
n=
(0,1)2
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n=96,04
Based on these calculations, the minimum number of samples that must be used in the study is 97 respondents.

2. MATERIALS AND METHODS

Research design
The type of research used in this research is causal associative research because it analyzes the causal
relationship, namely the independent variable (X) affects the dependent variable (Y). The approach used in this
research is a quantitative approach.
This research was conducted in Andalas Market, Tapa Village, Sipatana District, Gorontalo City to determine
customer satisfaction.
Population and Sample
The population selection in this study are consumers who have or are currently shopping at the Andalas
Market, Gorontalo. The sample selection is done by using snowball sampling. Snowball sampling is a technique
for determining a sample that is initially small in number, then becomes large. In determining the sample, first
one or two people are selected, but because these two people do not feel complete with the required data, the
researchers look for other people who are considered more understanding and can complete the data provided
by the two previous respondents (Sugiyono ,2017). To determine the number of unknown populations, the
Cochran formula is used in determining the sample as follows (Sugiyono, 2017):

Z 2 pq
Where:n
E2
n : Number of samples required
Z : The level of confidence required in the sample, which is 95%
p : Probability of Right 50%
q : 50% chance of wrong
Moe: Margin of Error or the maximum level of error that can be tolerated. The confidence level used is 95%
where the Z value is 1.96 and the maximum error rate is 10%. The number of sample sizes in this study is as
follows
( 1,96 )2 ( 0,5 ) (0,5)
n= 2
(0,1)
n=96,04
Based on these calculations, the minimum number of samples that must be used in the study is 97
respondents.
Methods of Data Collection and Instrument Development

Methods of collecting data in this study by: 1) That is direct research to support the truth of respondents in
answering questions and reduce errors that may arise. 2) That is data search using a list of questions with multiple
choice answers that are directly given to the Andalas Market consumers in Gorontalo. The instrument used in this

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study was a questionnaire or questionnaire which was prepared based on the indicators of the research variables.
The indicator contains statement items that will be answered by the respondent. Scoring the questionnaire
instrument or questionnaire uses a Likert scale which has five alternative answers (Sugiyono, 2015: 93). 3)
Documentation is a method where researchers look for data about things or variables in the form of notes,
transcripts, books, newspapers, magazines, inscriptions, meeting minutes, lengger, agenda, and so on (Arikunto,
2006: 231).

Data analysis technique

Research Instrument Test

1. Validity Test

2. Reliability Test

Classic assumption test

1. Normality Test

2. Multicollinearity Test

3. Heteroscedasticity test

4. Linear Regression Test

Hypothesis test

1. Partial Test (T-Test)

2. Simultaneous Test (F-Test)

3. Coefficient of Determination R2

3. RESEARCH RESULTS AND DISCUSSION

Results
Andalas market is a traditional market in the city which is located in the city of Gorontalo, Sipatana District,
Tapa Village. Astronomically, Gorontalo City is located between 00° 28' 17” – 00° 35' 56” North Latitude and 122°
59' 44” – 123° 05' 59” East Longitude. Geographically, Gorontalo City is the capital city of Gorontalo Province
which borders the Gulf Tomini in the south, Bone Bolango Regency in the east and north, and Gorontalo Regency
in the west. The area of Gorontalo City is 79.59 km2, this city is a lowland with an altitude of 0-500 m above sea
level.
Multiple Linear Regression Analysis Model Multiple linear regression analysis is an analysis used to determine the
effect of several X variables on one Y variable. Here are the results of linear regression analysis

Multiple Linear Regression Analysis Table

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Based on the regression equation model, the following can be interpreted:

a. The constant value is16.512shows the average value of the consumer satisfaction variable is 16.512 with the
provision of service variable value and physical environment
b. constant value or certeris paribus.
c. The value of the regression coefficient of the X1 variable (service) is0.066or equal to 0.66% shows that every
change in the consumer satisfaction variable by 1 percent will increase customer satisfaction by 0.66%. d. The
regression coefficient value of the X2 variable (physical environment) is0.523or by 52.3%, it shows that every 1
percent change in the consumer satisfaction variable will increase consumer satisfaction by 52.3%.

Partial Test (T Test)

The t-test is basically used to see the partial hypothesis (see the effect of each variable X on Variable Y) (Ghozali,
2018). This test is carried out with a t-test at a significance level (α) of 0.05% with the following conditions:
1. If the value of sig t > 0.05 then the variable has no significant effect.
2. If the value of sig t < 0.05 then the variable has a significant effect (Muhson, 2005: 55)

Partial Test Table (T)

If𝑡ℎ𝑖𝑡𝑢𝑛𝑔greater than then the hypothesis is accepted. It is known that 𝑡𝑡𝑎𝑏𝑒𝑙𝑡𝑡𝑎𝑏𝑒𝑙1.66123. Based on the
table above, H1 (service to customer satisfaction) is rejected, H2 (physical environment on consumer
satisfaction) is accepted. By using a probability of 0.05 and the df value listed in the t-test table
(attachment).𝑡𝑡𝑎𝑏el
a) Testing the first hypothesis (H1) It is known that the value of Sig. for the influence of service (X1) on consumer
satisfaction (Y) is 0.236 > 0.05 and the t value is 1.192 < t table 1.66123 so it can be concluded that H1 is
rejected, which means that there is a service effect on consumer satisfaction that has no significant effect.
b) Testing the second hypothesis (H2) obtained the value of Sig. for the influence of the physical environment
(X2) on consumer satisfaction (Y) is 0.000 t table 1.66123 so it can be concluded that H2 is accepted which
means that there is an influence of the physical environment on consumer satisfaction.

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Simultaneous Test (F Test)

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TableSimultaneous Test (F Test)

The F test in this study aims to determine together the effect of service, and the physical environment on
consumer satisfaction. In this study, there are 2 X variables, namely Service (X1) and Physical Environment (X2),
then the respondents amounted to 97 people, with a significance of 5% (0.05). For the first step to find f table is
to use the formula f table (k;nk).
F table =2 ; 97-2 information: n (number of respondents)
F table = 2 ; 95 k (number of variables X).

Based on the table above, it can be seen that the value (40,458) while the value at the 5% significance level
is (3.09). So it can be concluded that (40,458) is greater than (3.09) which means that the hypothesis is accepted.
How to find that is using probability 0.05 F hitung F tabel F hitung F tabel F tabel
Coefficient of Determination Test
TableCoefficient of Determination

Based on the results of the analysis of the coefficient of determination in the table above, it shows that the
magnitude of the coefficient of determination adjusted for the number or value of r square is 0.463. So it can be
concluded that the variation of the independent variables (service and physical environment) in explaining the
dependent variable (consumer satisfaction) is 0.463 or 46.3%, while the rest 53.7% is influenced by other
variables outside the model or which are not explained in this study.
Based on the results of the analysis of the coefficient of determination in the table above, it shows that the
magnitude of the coefficient of determination adjusted for the number or value of r square is 0.463. So it can be
concluded that the variation of the independent variables (service and physical environment) in explaining the
dependent variable (consumer satisfaction) is 0.463 or 46.3%, while the remaining 53.7% is influenced by other
variables outside the model or not explained in this study.

Discussion
The Effect of Service on Consumer Satisfaction at Andalas Market, Gorontalo City
Effect of service on customer satisfaction Andalas Market Based on the partial calculation of the effect of
service on customer satisfaction, the regression coefficient value (b2) is 0.066. At the 5% significance level, the t-

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count is 1.192 with a significance value of 0.236. The resulting significance value is less than 0.05, so it can be
said that the service variable has no significant effect on customer satisfaction.
The results of this study are in line with research conducted by Florianus Neris and Willy Tri (2016). The
results of their research concluded that service quality had a negative effect on the expression of dissatisfaction.The
services provided by traders are good for consumers will certainly increase satisfaction for these consumers.

InfluencePhysical Environment on Consumer Satisfaction in Andalas Market, Gorontalo City

Based on the results of the t-test that has been carried out, it can be seen that the physical environment
partially has a positive and significant effect on consumer satisfaction at the Andalas Market. This is shown from the
results of the calculation of the regression coefficient with a value of tcount > t-table which is 7.716 > 1.66039 and
with a significance value < alpha which is 0.027 < 0.05, which means H0 is rejected. The size of the significance
value of the physical environment will affect consumer purchasing tendencies. In this case, it shows that the high
and low quality of the physical environment will affect the level of consumer satisfaction. The results of this study
are in line with research conducted by Lutfi Qurrota A'yunin (2021) that the physical environment has a positive and
significant effect on consumer satisfaction at the Kanigoro People's Market, Blitar Regency.

Influence Waitress and Physical Environment on Consumer Satisfaction in Andalas Market, Gorontalo
City
The results of testing the first hypothesis in this study, it was found that the service and physical environment
variables simultaneously had a positive and significant effect on consumer satisfaction at the Andalas Market,
Gorontalo City. So from these results it can be concluded that the third hypothesis regarding service and the
physical environment has a simultaneous effect on consumer satisfaction
The results of this study are in line with the theory which says that service or service is any action or deed
that can be offered by one party to another, which is essentially intangible and does not result in ownership of
anything (Tjiptono, 2002). This research is in line with previous research by Lutfi Qurrota A'yunin (2021) with the
title The Effect of Price, Physical Environment, and Quality of Traditional Market Services on Consumer Satisfaction.
The results of this study are consumer satisfaction at the Kanigoro People's Market explained or influenced by price
variables, physical environment, and quality of service.

4. CONCLUSION
Based on the results of the study, the following conclusions can be drawn:
1. From the results of the tests carried out by the First Hypothesis Testing (H1), it is known that the value of Sig.
for the effect of service (X1) on Consumer Satisfaction (Y) is the t-count value is smaller than the t-table value.
So it can be concluded that H1 is rejected, which means that there is an effect of service on customer
satisfaction at the Andalas People's Market. The negative effect indicates that the higher or better the quality of
service provided by traders to consumers, the higher the customer satisfaction. Services that are carried out
well by all traders and market managers to consumers will provide added value for customer satisfaction.
2. From the results of the tests carried out, it shows that the physical environment (X2) has an effect on the
influence of consumers (Y) is the value of t count is greater than the table so it can be said that H2 is accepted,
which means that there is an influence of the physical environment on consumer satisfaction at the Andalas
People's Market, Gorontalo City. The high quality of the physical environment will affect the level of consumer
satisfaction. A clean and tidy environment, a large parking area, and the division of easy-to-purchase zones can
increase customer satisfaction at Pasar Rakyat Andalas.
3. Based on the results of the research conducted, it was found that the service and physical environment
variables simultaneously had a positive and significant effect on consumer satisfaction at the Andalas Market,
Gorontalo City. So from these results it can be concluded that the third hypothesis regarding service and the
physical environment has a simultaneous effect on consumer satisfaction. So it is very influential because

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without good quality service for buyers and prospective buyers (society) it can affect the income of the sellers,
buyers are reluctant to make transactions with sellers if the services they provide are not in accordance with
what they expect.
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