CHAPTER I

INTRODUCTION

1.1 Background of the Study

Transportation is the movement of people, animals and goods from one location
to another. It is needed by everyone either people to go everywhere they want or a
company that wants to deliver their product or service across border. The presence
of transportation can make the works become more efficient and effective in terms
of time and cost. Transportation can be divided into several types such as
airplanes, boats, motorbikes, cars, etc. People will choose different types of
transportation depend on the purpose for travelling, length of the journey, cost and
safety also becoming a deciding factor in the types of transport people use.

Indonesia is one of the largest countries in the world without a decent or well-
functioning public transportation system. It then turned out that the supply of
public transport failed to fulfil the market demand then people began to
collectively opt for private vehicles over public transportation. More and more
people are relying on the private car as their major means of transportation
because it helps people saving their time, travelling safe and making their
journeys comfortable. It is proved by the number of private car in Indonesia that
increases every year as it is showed by the following table.

Jumlah
Pesawat Mobil
Tahun Mobil Bis2) Mobil Barang2) Kendaraan
Udara1) Penumpang2)
Bermotor2)
2006 1020 6035291 1350047 3398956 43313052
2007 687 6877229 1736087 4234236 54802680
2008 702 7489852 2059187 4452343 61685063
2009 737 7910407 2160973 4498171 67336644
2010 839 8891041 2250109 4687789 76907127
2011 865 9548866 2254406 4958738 85601351
2012 950 10432259 2273821 5286061 94373324
2013 n.a. 11484514 2286309 5615494 104118969
Sumber :
1) Direktorat Jenderal Perhubungan Udara - Kementerian Perhubungan
2) Korps Lalu Lintas Kepolisian Republik Indonesia (Korlantas Polri)

Table 1.1 Number of Transportation in Indonesia

Source : http://www.bps.go.id

Table 1.1 above shows that the number of private car in Indonesia has been
increasing from 2006 to 2013.
Due to the increasing of number of transportation in Indonesia, sales of car
industry in Indonesia is significantly going up. There are a lot of car industry that
got competition. They are fighting against competitors in order to win the market.
Each company have several type of product, car industry always doing innovation
with advanced technology to create products that are liked and needed by
consumers.

According to Perdana ( 2010 ), competition is not between what are companies

produced in their factories , but between what they add to the result in the form of
packaging, service, advertising, consulting for costumers, financing, delivery
matters and another thing that consumer think is worth. In addition (Hossain,
2007). Companies must work against the consumer experience to make sure that
all that is seen and heard the customer is indeed all they want.

Sometimes customer looked brand is the main part of product or service. Brand
itself was adding the value of the product or service. Having a quality brand
image is not only important for larger business , but smaller businesses as well.
Establishing a brand image is one of the best way to get consumers to connect and
engage with the business. Having a positive brand image help the customers
understand what the business all about and know what customer can expect from
the company , the product or the service.

Honda Jazz??

Relation about brand image --> Customer Loyalty

1.2 Problem Identification

1.3 Statement of the Problem

1.4 Research Objective

1.5 Significance of the Study

1.6 Scope and Limitations of the Study

1.7 Defenition of Terms