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ANALYSIS OF CUSTOMER SATISFACTION AND BUSINESS
MODEL CANVAS IMPLEMENTATION
IN START-UP BUSINESS: THE CASE OF EUREKA INTERVIEW
Entrepreneurship Thesis
To Fulfill Graduate Program Degree Requirement
Submitted by
Mohammad Genta Mahardhika
10/310079/PEK/15251
MASTER OF MANAGEMENT PROGRAM
FACULTY OF ECONOMICS AND BUSINESS
UNIVERSITAS GADJAH MADA
2012
i
ii
DECLARATION
I hereby declare that this thesis does not contain work that has previously been
submitted to obtain any degree at any higher educational establishment, and to the
best of my knowledge does not contain the previously published work nor opinion of
other person, with the exception of those cited written in this paper and acknowledge
in the bibliography.
Yogyakarta, 16 March 2012
Mohammad Genta Mahardhika
iii
ACKNOWLEDGMENT
The greatest gratitude to The God Almighty, who give me a wonderful life,
and great opportunity to finish my thesis in MMUGM. I would like to give my
deepest gratitude and appreciation for these wonderful people:
1. Nurul Indarti, Sivilokonom. Cand. Merc., Ph.D for being my lecturer and
thesis supervisor. Thank you for spending your limited time to discuss and
advise my thesis. You are supportive and smart person, Mam. No wonder
your have achieve so many things at the young age.
2. Dr. Zulfahmi Burhan, Sjahdjunarni, Mohammad Gezah Albanna and Geny
Permata Hati for being my lovely family with great support. Thank you Gez
and Geny for being unique, and creative brother and sister. Thank you for
every prayer being said, Mom. Thank you for every discussion we have made,
Dad.
3. Vita Widyasari, S.Ked. for being my lovely supportive person since we met.
Thank you hun.
4. Dian Ardhini Hapsari, MBA for being my best friend in MMUGM. Thank
you for every support in thesis, class, marketing club, and jumping jack.
Thank‟s Dhin.
5. Vishal Chander Dasani, MBA for being my best friend in MMUGM. Thank
you for every support in thesis, class, marketing club, and jumping jack.
Thank‟s Bro.
iv
6. My big family, Nenek, Amak, Tek Del dan Pak Etek In, Pak Etek Pi dan Tek
Elsi, Tek Yon dan Pak Etek Bis, Tek Eva, Tek Tety, Fauzan, Fauziah, Furqan,
Irma, Ilham, Ilvy, Damar, Daffa, Tek Lin dan Pak Etek Dani, Mozza, Tek
Yeni dan Pak Etek Zal, Dhika, Hatta, Mak Dang Wan, Mak Angah Pin, Mak
Etek At. Thank you for supporting in your own way.
7. I also want to give my greatest gratitude all MMUGM staff especially to the
Admission Office (Ms Diana Kestanti, Mrs Noor Aini Endrawati, Mrs Sri
Lestari, Mr Eko Sukajiyanto) for the warm friendship and guidance through
our years in MMUGM, Ms Panca Mulyaningrum, Mr Rujito, Ms Asih, and
Mr Rizki in the Student Association Office for being very supportive in the
extra-curricular activities. Mr Muhammad Akhdy Prihantono, Mrs Ning, Mr
Bambang, Mr Poniman, Mr Fatur, Mr Widadi, Mrs Ira and the rest of
Academic Affairs Office who has been very supportive during the study. Mrs
Erna, Mr Bekti, Mr Ngatimin, Mr Fatkhan Mrs Desy, Mrs Ruri, Mr Wijaya
and the rest of MMUGM staff. Thank you for supporting in your own way.
8. All of my friend in MMUGM Yogyakarta: Arief, Budi, Cendana, Ifti, Ophy,
Dian Listya, Metta, Sari, Belinda, Winda, Phipi, Dinar, Aang, Wendy, Andri,
Non, Gugu, Jumran, Yudhis, Iko, Novi, Thici, Tabitha, Iin, Fadly, Putra,
Dimas, Yudha, Rasyid, Rahmat, Anggi, Icha, Dian, Dewi, Lingga, Andri,
Riri, Rindi, Cathrin, Yuna, Tyas, Iman, Dian ISU, Leo, Yulis, mas Rahmat.
9. Everyone who support me and i cannot mention it one by one. May Allah
bless you.
v
“The Best of Human Beings are human beings who provide benefits to many people”
–Mohammad SAW-
Yogyakarta, 16 March 2012
Mohammad Genta Mahardhika
vi
TABLE OF CONTENTS
CHAPTER I BACKGROUND ....................................................................... 1
I.1 Company External Environment .......................................................................... 1
I.2 Company Internal Environment ........................................................................... 2
I.3 Research Questions .............................................................................................. 3
I.4 Purpose of the Study ............................................................................................ 4
I.5 Benefit of the Study ............................................................................................. 4
CHAPTER II LITERATURE REVIEW ......................................................... 5
II.1 Customer Satisfaction ......................................................................................... 5
II.2 Mission, Vision, and Goals ................................................................................. 7
II.3 Business Model Canvas ...................................................................................... 9
II.3.1 Customer Segment ..................................................................................... 11
II.3.2 Value Proposition ....................................................................................... 12
II.3.3 Channel ...................................................................................................... 13
II.3.4 Customer Relationship ............................................................................... 14
II.3.5 Key Resources ............................................................................................ 16
II.3.6 Key Activities............................................................................................. 17
II.3.7 Key Partnerships ........................................................................................ 17
II.3.8 Revenue Stream ......................................................................................... 18
II.3.9 Cost Structure ............................................................................................. 20
CHAPTER III RESEARCH METHODS ...................................................... 22
III.1 Level of Analysis ............................................................................................. 22
III.2 Type of Data .................................................................................................... 22
III.3 Population and Sample .................................................................................... 22
III.4 Data Collection Methods ................................................................................. 23
III.5 Quality of the Instruments ............................................................................... 23
III.6 Data Analysis Methods ................................................................................... 23
vii
CHAPTER IV STRATEGY AND PLAN ...................................................... 24
IV.1 Mission, Vision, and Goals ............................................................................. 24
IV.2 Customer Segment .......................................................................................... 26
IV.3 Value Propositions .......................................................................................... 26
IV.4 Channel ........................................................................................................... 27
IV.5 Customer Relationship .................................................................................... 29
IV.6 Key Resources ................................................................................................. 29
IV.7 Key Activities .................................................................................................. 30
IV.8 Key Partnerships ............................................................................................. 30
IV.9 Revenue Stream .............................................................................................. 30
IV.10 Cost Structure ................................................................................................ 31
CHAPTER V STUDY RESULTS AND BUSINESS ACTION ........................ 33
V.1 Study Results .................................................................................................... 33
V.1.1 The Result of Customer Satisfaction in Training Methods ....................... 34
V.1.2 The Result of Customer Satisfaction in Trainer Performance ................... 35
V.1.3 The Result of Customer Satisfaction in Training Usefulness .................... 36
V.2 Business Action ................................................................................................ 37
V.2.1 Customer Segment ..................................................................................... 37
V.2.2 Value Propositions ..................................................................................... 38
V.2.3 Channel ...................................................................................................... 38
V.2.4 Customer Relationship ............................................................................... 39
V.2.5 Key Resources ........................................................................................... 39
V.2.6 Key Activities ............................................................................................ 39
V.2.7 Key Partnerships ........................................................................................ 40
V.2.8 Revenue Streams ........................................................................................ 40
V.2.9 Cost Structure............................................................................................. 40
viii
CHAPTER VI CONCLUSION AND RECOMMENDATION ........................ 41
VI.1 Conclusion ....................................................................................................... 41
VI.2 Recommendation ............................................................................................. 42
BIBLIOGRAPHY ....................................................................................... 44
ix
APPENDIX
Appendix 1 Questionnaire ....................................................................................... 47
Appendix 2 Data Collection .................................................................................... 48
Appendix 3 Descriptive Statistics ........................................................................... 49
x
TABLE OF TABLES
Table 1 Customer Satisfaction Researchers Statement ................................................. 6
Table 2 Cost Structure ................................................................................................. 31
Table 3 Customers Demography Summary ................................................................ 33
Table 4 Result of Customer Satisfaction in Training Methods ................................... 34
Table 5 Result of Customer Satisfaction in Trainer Performance Results.................. 35
Table 6 Result of Customer Satisfaction in Training Usefulness ............................... 36
xi
TABLE OF FIGURES
Figure 1 Mission, Vision and Goals of Eureka Interview ........................................... 24
Figure 2 Eureka Interview Nine Building Blocks ....................................................... 32
xii
Intisari
Eureka Interview adalah bisnis baru yang bergerak dalam bidang
pelatihan wawancara kerja dengan metode simulasi. Setelah pendiriannya
pada tahun 2010, sangat penting untuk mengevaluasi performa Eureka
Interview dalam sudut pandang konsumen dan belajar menjalankan
bisnis pemula selangkah demi selangkah. Penelitian ini berkeinginan
untuk mengevaluasi bisnis Eureka Interview dalam perspektif kepuasan
konsumen. Penelitian ini menjadi semakin penting ketika mengetahui
adanya pesaing-pesaing yang mencoba mengungguli, adanya peluang
serta ancaman dari dalam dan luar Eureka Interview. Tujuan utama dari
penelitian ini adalah untuk menganalisa implementasi dari konsep canvas
business model dalam memberikan produk yang memiliki nilai tambah
untuk membuat konsumen puas. Kepuasan konsumen didefinisikan
sebagai persepsi individu terhadap semua pengalaman dalam
berhubungan dengan barang atau jasa dalam hubungannya dengan
persepsi produk. Business model canvas dedifinisikan sebagai
rasionalisasi bagaimana sebuah organisasi membuat, menyampaikan dan
memaparkan nilai dalam bentuk nine building blocks. Penelitian ini
dilakukan dalam waktu tiga bulan sejak 29 Oktober 2011 sampai 28
Januari 2012. Total responden adalah 43 orang. Mereka adalah konsumen
Eureka Interview dalam periode penelitian. Hasil penelitian ini
menunjukkan bahwa kepuasan konsumen Eureka Interview yang terdiri
dari tiga faktor (kepuasan konsumen dalam metode pelatihan,
penampilan pelatih, dan kebermanfaatn pelatihan) berada pada level
puas. Dari nine building blocks canvas, ada beberapa bagian yang telah
di implementasikan dengan baik oleh Eureka Interview, yaitu customer
segment, value propositions, key resources, key activities, key
partnerships, revenue streams, dan cost structure. Building blocks
lainnya yaitu channel dan customer relationship di dalam Eureka
Interview business model belum diimplementasikan dengan baik.
Kata Kunci: Kepuasan Konsumen, Model Bisnis, Bisnis Pemula
xiii
Abstract
Eureka Interview is a new business dealing in job interview soft skills
simulation training. After the establishment in 2010, it is crucial to
evaluate performance of Eureka Interview from customer‟s perspective
and to learn step by step strategies in running start up business. This
study was intended to evaluate Eureka Interview‟s business from the
perspective of customer satisfaction; and since there was an intense
rivalry among its competitors as well as the availability of opportunities
and threats from the company‟s internal and external environments, this
study becomes crucially important. The main purpose of this study was
to analyze business model implementation in delivering value added
products to make customer satisfied. Customer satisfaction is defined as
the individual perceptions of all experiences with the product or service
in relation to his or her expectations. Business model canvas is defined as
the rationale of how an organization creates, delivers, and captures value
in the forms of nine building blocks. This study was conducted in three
months since October 29th
, 2011 until January 28th
, 2012. Total
respondents were 43 people. They were Eureka Interview‟s customers
during the study period. The results showed that Eureka Interview‟s
customer satisfaction which consists of three factors (customer
satisfaction in training methods, customer satisfaction in trainer
performance, and customer satisfaction in training usefulness) are in the
level of satisfied. From nine building blocks business model canvas,
there were some building blocks in Eureka Interview that had already
being well-implemented. They were customer segment, value
propositions, key resources, key activities, key partnerships, revenue
streams, and cost structure. In the other hand, channel and customer
relationship in Eureka Interview‟s business model were not well-
implemented yet.
Keywords: Customer Satisfaction, Business Model, Start-up business
1
CHAPTER I BACKGROUND
There is a growing trend in the number of entrepreneurs globally, including in
Indonesia (Klapper & Delgado, 2007). Majority of them are new entrepreneurs.
These new entrepreneurs have many challenges. One challenge is to implement an
existing business idea into a profitable business practice by delivering value added
products and satisfactory services to the customer. Eureka Interview is a new business
dealing in interview soft skills simulation training and through this thesis, the
challenges and opportunities of the Eureka Interview will be discussed.
I.1 Company External Environment
By the year 2010, the number of entrepreneurs in United State was 12.5% of the
nation‟s population. Japan was 10%, England 10 %, Singapore 7.5 %, China 2.5 %,
India 2.5 % and Malaysia 2.5 %. In Indonesia, the percentage of entrepreneurs
compare to total population was only 0.2%. It was a very low rate compare to other
countries. According to Elfindri, Ayunda, and Saputra (2010), to increase a welfare
level of a country, the ideal number of entrepreneurs should be at least 2% of the
population.
According to Stowe (2002) the United States has an almost overwhelming variety of
educational programs and activities that are designed to promote entrepreneurship.
The programs designed from the early stage of education (K-12 programs) to higher
education level (Ph.D. programs). By 1970, there were some 16 universities with
2
courses in entrepreneurship in USA. The numbers are increasing year by year.
Nowadays, USA has entrepreneurship course and small business education. The
difference between entrepreneurship education and small business education is that
the entrepreneurship education focus on building companies that will eventually go
public and create wealth for the founders while small business courses focus on
creating business to provide an income for their owner-operators (Alberti, Sciascia, &
Poli, 2004).
Entrepreneur education program has just recently become popular in Indonesia.
According to Ortmans (2011) The Ministry of National Education has replicated the
International Labour Organization‟s “Know about Business” curriculum and has
trained 10,800 teachers in more than 4,500 schools since 2008.
There are also entrepreneurship education programs both in private and state
universities. University of Ciputra, one of private universities, has invested in
entrepreneurship curriculum about 10 million dollars. Directorate General of Higher
Education has launched program called Student Entrepreneur Program. This program
evaluates student business proposal, funds the prospective business and trains the
student entrepreneur (Ibrahim, 2011).
I.2 Company Internal Environment
Student entrepreneur program has affected all the participants positively. One of the
participant is a student of Faculty of Economics and Business Universitas Gadjah
3
Mada (FEB UGM). His name is Mohammad Genta Mahardhika and he found Eureka
Interview which became the object of this study.
Eureka Interview business is a job interview consultant and training, founded in
Yogyakarta at July 1st 2010. This company started the first training in July 17
th 2010
with five trainees. It takes one year until the Eureka Interview organized soft
launching on October 28th
2011. The soft launching was a milestone to begin this
study.
At soft launching, Eureka Interview management consists of four people. The
majorities of management are fresh graduate students and has little experience in
managing consultant and training business, or business in general. Therefore, the
company‟s objective for increasing profit and satisfying the customers were quite
challenging for these young people.
I.3 Research Questions
After the establishment in 2010, it is crucial to evaluate performance of the Eureka
Interview from customer perspective and to learn step by step running start up
business. This study is intended to evaluate Eureka Interview business from the
perspective of customer satisfaction; and since there an intense rivalry among its
competitors as well as the availability of opportunities and threats from the
company‟s internal and external environments, this study becomes crucially
important. The researcher addresses the research questions as:
4
1. Are the customers of Eureka Interview satisfied with the services?
2. Is the business model of Eureka Interview implemented effectively?
I.4 Purpose of the Study
The main purpose of this study is to analyze business model implementation in
delivering value added products to make customer satisfy. The purposes are stated as
follows:
1. To analyze Eureka Interview‟s customer satisfaction level
2. To analyze Eureka Interview‟s business model implementation
I.5 Benefit of the Study
This study has practical and theoretical benefits. In practical aspect, it will benefit the
Eureka Interview management and researcher will has benefit in theoretical aspect.
1. The Eureka Interview; Satisfied customers is a key to profitable and sustain
business. If Eureka Interview understands about customer satisfaction, they
will grab one of success keys in business. The other success key is business
model implementation. Business model should evaluate time to time.
Business model evaluation will be a guide to run start up business.
2. This study provides reference for future study.
5
CHAPTER II LITERATURE REVIEW
Theoretical basis is important in conducting a study on customer satisfaction and
implementing a business model. In this chapter, the basic theories of customer
satisfaction, mission, vision, goals, and the company‟s business model canvas are
discussed.
II.1 Customer Satisfaction
Churchill Jr. & Surprenant (1982) defined customer satisfaction as an outcome of
purchase and result from the buyer‟s comparison of the rewards and costs of the
purchase in relation to the anticipated consequences. According to Parasuraman et al
(1988) customer satisfaction is defined as a result of comparison between customer
expectations about services provided by a service provider and customer actual
services received by a service provider (Yunus, Ismail, Juga, & Ishak, 2009).
Satisfaction is defined as an overall evaluation of performance based on all prior
experiences with a firm (Nicoleta-Cristina, 2008). In this study, customer satisfaction
is the individual perceptions of all experiences with the product or service in relation
to his or her expectations.
Although sales or market share can indicate how well a firm is performing currently,
satisfaction is perhaps the best indicator of how likely it is that the firm‟s customers
will make further purchases in the future (Farris et al, 2010). Future purchases reflect
company‟s sustainability and profitability. Some researcher supports this argument
6
according to Ahmed, Nawaz, Usman, Shaukat, Ahmad, and Iqbal (2010). Some
arguments about this matter can be seen in table 1.
Table 1 Customer Satisfaction Researchers Statement
Researcher Year Statement
Drucker 1973 Customers‟ satisfaction is the base for business success.
Rust and
Zahorik
1993 Customers‟ satisfaction is now becoming a corporate
level strategy. There is positive relationship between
customer satisfaction and financial performance.
Anderson et al. 1994 Customers‟ satisfaction is source of competitive
advantage for organizations. There is positive
relationship between customers‟ satisfaction and
financial performance.
Claycomb &
Martin
2002 Customers‟ satisfaction is corner stone for relationship
between marketing and management.
Kim et al. 2004 Customers‟ satisfaction leads them to use current
service and creates loyal customers for future.
Source: Ahmed et al (2010).
According to Farris, Bendle, Pfeifer, and Reibstein (2010), customer satisfaction
measurement could give two advantages both inside and outside the organization.
Within organization, customer satisfaction measurement may provide feedback to the
employee and management. If there was a problem during its service, the customer
satisfaction measurement will be a warning for them. By using customer satisfaction
measurement, company would also able to determine the customer willingness for
recommending the business. A satisfied customer has higher tendency to recommend
a product/ service to friends, relatives and colleagues.
There are some factors that affect the customer satisfaction in service business.
According to Potluri and Mangnale (2011) some of them are service delivery process,
7
service interaction and overall customer satisfaction level according to service
usefulness. In this study, customer satisfaction is defined as follows:
1. Service delivery process are the construction of services, describing the
scheme and sequence in which service operating system work and how they
link together to create the service experiences and outcomes that customers
will worth. In the context of this study, training methods of Eureka Interview
can be considered as service delivery process.
2. Service interaction principally determine by a high degree of person to person
interaction and by the absence of an exchange of tangible goods. In the
context of this study, trainer interaction with customer can be considered as
service interaction.
3. Overall performance of service usefulness which means the overall
perceptions of customer about the usefulness services.
II.2 Mission, Vision, and Goals
Achieving high level customer satisfaction is the basic creation for a company‟s
mission, vision, and goals of the company. According to Lipton (1996) mission
addresses the fundamental question of why an organization exists. Why it is in
business? What is its purpose? For whose benefit are all its efforts?
Defining mission statement is quite difficult for all companies. Companies usually
take a long time to define their mission. Successful companies usually define their
mission since the beginning of the company and they are not mention price or
8
financial profit as a mission. For example, AT&T‟s mission statement is “Dedication
to being the world‟s best at bringing people together-giving them easy access to each
other and to the information and services they want- anytime, anywhere.” Another
example is SONY mission “To experience the sheer joy of innovation and the
application of technology for the benefit and pleasure of the general public” (Collins
& Porras, 1996).
The next term is vision. According to Collins & Porras (1996) vision provides
guidance about what core to preserve and what future to stimulate progress toward. A
well-conceived vision consists of two major components: core ideology and
envisioned future. Core ideology defines what we stand for. The envisioned future is
what we aspire to become, to achieve, to create something that will require significant
change and progress to attain. A vision must focus on the future and be a concrete
foundation for the organization. A good vision communicates why the organization
is special and different than the others. For example, Wal-Mart in 1990 wanted to
become a $125 billion company by the year 2000. The other example is Boeing in
1950. It is vision is “Become the dominant player in commercial aircraft and bring
the world into the jet age” (Collins & Porras, 1996).
The next term is goals. Goals are the milestone to achieve vision. Goals vibrant,
engage, and specific description is a milestone to achieve the vision. Company‟s
vision needs an audacious 10-to-30 year goal to progress. According to Collins and
Porras (1996) the term is called BHAG (Big, Hairy, and Audacious Goals). A true
9
BHAG is clear and compelling, serves as unifying focal point of effort, and acts as a
catalyst for team spirit. A BHAG may only a 50% to 70% probability of success, but
the organization believes that it can reach anyway.
Henry Ford brought to life the goal of democratizing the automobile with this goal: “I
will build a motor car for the great multitude. It will be so low in price that no man
making a good salary will be unable to own one and enjoy with his family the
blessing of hours of pleasure in God‟s great open spaces. When I‟m through,
everybody will be able to afford one, and everyone will have one. The horse will
disappeared from our highways, the automobile will be taken for granted and we will
give a large number of men employment at good wages” (Collins & Porras, 1996).
Another example of SONY goals, “We will create products that become pervasive
around the world. We will be the first Japanese company to go into the U.S market
and distribute directly. We will succeed with innovations that U.S companies have
failed at – such as the transistor radio. Fifty years from now, our brand name will be
as well-known as any in the world and will signify innovation and quality that rival
the most innovative companies anywhere. „Made in Japan‟ will mean something fine,
not something shoddy” (Collins & Porras, 1996).
II.3 Business Model Canvas
Implementing mission, vision, and goals to become value that customer needed must
use theoretical tools. The idea tool to conduct the implementation is business model.
A business model describes the rationale of how an organization creates, delivers, and
10
captures value (Osterwalder & Pigneur, 2010). Canvas business model is one of the
concept business models. Business model canvas was written by Alexander
Osterwalder and Yves Pigneur, professors in University of Lausanne, (Grassl, 2010).
The Business Model Canvas is the structure common to all models. It consists
of nine components (“building blocks”) arranged in a particular way that is
somewhat reminiscent of Porter‟s model of a value chain. At the core of a
business model lies a value proposition, which links the use of key resources
and the performance of key activities by key partners to build customer
relationships through channels operated to reach customer segments. The
stream of revenues generated by these components is held against the cost
structure associated with them. The Canvas is the leitmotif of the book, and
all business models presented are fitted into this mold. This structure provides
the backdrop for considering selected patterns of business models (unbundling
components, diversity based on the “long tail” hypothesis, multi-sided
platforms, “free” products, and “open” business models), techniques to help
design business models (from customer insights via prototyping to scenarios),
and lastly a re-interpretation of strategy through the lines of business models.
The book concludes with a systematic exposition of the business model
design process and an outlook to “beyond-profit” business models. The
examples presented on the way include a great variety of cases, from Skype to
Lego®, and from GlaxoSmithKline to Swatch Group. (p.1)
Business model can best be described through nine basic building blocks that show
the logic of how company intends to make money. Based on Osterwalder (2010), the
nine blocks cover the four main areas of business: customers, offer, infrastructure,
and financial viability. The business model is like a blueprint for a strategy to be
implemented through organizational structures, processes, and systems. Each block in
nine building blocks canvas is described as follows.
11
II.3.1 Customer Segment
According to Larsen (2010) customer segmentation is a process of dividing the
market into several segments based on factors such as demographic, geographic, and
psychographic. The customer segments building block defines the different groups of
people or organizations an enterprise aims to reach and serve. Company needs to
group market with common needs, common behaviors, or other attributes. A business
model is designed carefully based on strong understanding of specific customer
needs. According to Osterwalder (2010) customer groups represent separate segments
if:
1. Their needs require and justify a distinct offer
2. They are reached through different distribution channels
3. They require different types of relationships
4. They have substantially different profitabilities
5. They are willing to pay for different apsects of the offer
There are different types of customer segments according to Kotler (2006). Here are
some examples:
1. Mass market; Business model who targets mass market is not distinguish
between different customer segments. The value proposition, distribution
channels, and customer relationships all focus on one large group with similar
needs and problems.
12
2. Niche market; Business model targets specific, specialized customer
segments. The value propositions, distribution channels and customer
relationships are all aligned with specific requirements of a niche market.
3. Segmented; Segmented business model is a market segment consists of a
group of customers who share a similar set of needs and wants.
4. Diversified; This business model has two unrelated customer segments with
very different needs and problems.
5. Multi-sided platforms (or multi-sided markets); Organizations serve two or
more interdependent customer segments. Both segments are required to make
the business model works.
II.3.2 Value Proposition
The second building block is value proposition. According to Treacy and Wiersema
(1993) value propositions is an implicit offer to customers in a particular combination
of values. The value propositions building blocks describes the bundle of products
and services that create value for a specific customer segment. Value proposition
consist of a selected bundle of products to solve customer problem or satisfies a
customer need. Values may be quantitative (e.g. price, speed of service) or qualitative
(e.g. design, customer experience). According to Osterwalder (2010) elements from
the following list can contribute to customer value creation:
1. Newness; Some value proposition satisfy an entirely new set of needs that
customers previously didn‟t perceive because there was no similar offering.
13
2. Performance; Improving product performance has traditionally been a
common way to create value.
3. Customization; Tailoring products and services to the specific needs of
individual customers or customer segments create value.
4. “Getting the job done”; Value can be created simply by helping customer get
certain jobs done.
5. Design; some products can be outstanding because of superior design.
However, design is difficult elements to measure.
6. Brand/ Status; Customer may find value in using/ displaying a specific brand.
7. Price; satisfy the needs of price-sensitive customer segments by offering
lower price with the same value.
8. Cost reduction; creating value by helping customers reduce costs.
9. Risk reduction; reducing customers risk when purchasing products can create
value.
10. Accessibility; when customers experience difficulties to access the products,
making the products available to customers can create value.
11. Convenience/ Usability; Substantial value can create by making things more
convenient or easier to use.
II.3.3 Channel
Channel is the third block. This building block describes how a company
communicates and reaches its customer segments to deliver a value proposition.
14
According to Kamali and Loker (2002) channel is defined as the use of
communication, transaction, distribution channels by company to the customers.
Company‟s interface with customers comprise in communication, distribution, and
sales channels. According to Osterwalder (2010) channel has several function
including:
1. Raising awareness among customers about a company‟s products
2. Helping customers evaluate a company‟s value proposition
3. Allowing customers to purchase specific products
4. Delivering a value propositions to customers
5. Providing post purchase customer support
Bringing a value propositions to market is difficult. The solution is find the right mix
of channels to reach customer segment. Organization can choose using their own
channels, partner channels, or through a mix of both. Partner channels lead to lower
margins, but they allow an organization to expand its reach and benefit from partner
strengths. Own channel lead to high costs and unproven channel.
II.3.4 Customer Relationship
According to Prasongsukarn (2009) customer relationship is a combination of
strategy and information systems, it aims at focusing attention on customers in order
to serve them better. The type of relationships a company establishes with specific
customer segments is the definition of the customer relationship building block.
15
According to Osterwalder (2010) customer relationships may be driven by the
following motivations:
1. Customer acquisition
2. Customer retention
3. Boosting sales (upselling)
We can distinguish between several categories of customer relationship, which may
co-exist in a company‟s relationship with a particular customer segment based on
Osterwalder (2010):
1. Personal assistance; Human interaction is based in this relationship. The
customer can communicate with someone during sales process or after sales
process using phone, email or on site meeting.
2. Dedicated personal assistance; using customer representative specifically to
an individual client.
3. Self-service; a company maintains no direct relationship with customers.
Customers help themself by system that company provides.
4. Automated services; this type of relationship using automated processes to
make customer help themselves.
5. Communities; Facilitate connections between community members and to
become more involved with customers/ prospects are the motivation behind
communities utilization.
16
6. Co-creation; Co-create value with customers to make products.
II.3.5 Key Resources
The key resources building block describes the most important assets required to
make a business model work. These resources allow an enterprise to create and offer
a value proposition, reach markets, maintain relationships with customer segments
and earn revenues. According to Grant (1991), a key resource is a basis of company
to create profit and source of direction. Key resources can be owned or leased or
acquired from key partners. According to Osterwalder (2010) key resources can be
categorized as follows:
1. Physical; this category includes physical assets such as manufacturing
facilities, buildings, vehicles, machines, systems, point-of-sales systems, and
distribution.
2. Intellectual; Intellectual resources such as brands, proprietary knowledge,
patents and copyrights, partnerships, and customer databases are very
important nowadays.
3. Human; every business need human to run their business, but in some
businesses human capital plays the most critical role.
4. Financial; Cash, lines of credit, or stock option pool for hiring key employees
are some financial resources and/ or financial guarantees.
17
II.3.6 Key Activities
The key activities building block describes the most important thing the company
must do to make its business model work. According to Osterwalder (2010) key
activities can be categorized as follows:
1. Production; in substantial quantities and/ or of superior quality these activities
relate to designing, making, and delivering a product.
2. Problem Solving; New solutions to individual customer problems are relate to
coming up in this type of key activity.
3. Platform/ network; Business model that design with a platform as the key
resources, do this key activity.
II.3.7 Key Partnerships
According to Carnwell and Carson (2004) partnerships is shared commitment, where
all partners have a right and an obligation to participate and will be affected equally
by the benefits and disadvantages arising from the partnership. The key partnerships
building blocks describe the network of suppliers and partners that make the business
model work. Companies create alliances to optimize their business models, reduce
risk, or acquire resources. According to Osterwalder (2010) there are four different
types of partnerships and three motivations for creating partnerships. The four
different types of partnerships are:
1. Strategic alliances between non-competitors
2. Coopetition: strategic partnerships between competitors
18
3. Joint ventures to develop new business
4. Buyer-supplier relationships to assure reliable supplies
The three motivations for creating partnerships are:
1. Optimization and economy of scale; this design to optimize the allocation of
resources and activities. Formed to reduce costs and often involve outsourcing
or sharing infrastructure are usually happen in optimization and economy of
scale.
2. Reduction of risk and uncertainty; Partnerships can help reduce risk in a
competitive environment characterized by uncertainty.
3. Acquisition of particular resources and activities; this partnerships can be
motivated by needs to acquire knowledge, licenses, or access to customers.
II.3.8 Revenue Stream
The revenue stream building block represents the cash a company generates from
each customer segment. Revenue stream is revenue that resulted from delivering
value to customers. According to Osterwalder (2010) there are several classifications
of revenue stream. First, a business model can involve two different types of revenue
streams:
1. Transaction revenues resulting from one-time customer payments
2. Recurring revenues resulting from on-going payments to either deliver a value
proposition to customers or provide post-purchase customer support
19
Second, there is several ways to generate revenue stream:
1. Asset sale; selling ownerships rights of a physical products.
2. Usage fee; this revenue streams come from the use of particular service.
3. Subscription fee; this revenue stream comes from selling continuous access to
a service.
4. Lending/Renting/Leasing; This revenue stream come from allowing someone
to use particular asset as an exclusive right in fixed period and as a return, fee
will be given.
5. Licensing; this revenue stream come from giving customers permission to use
protected intellectual property in exchange for licensing fees.
6. Brokerage fees; this revenue stream come from intermediation service
between two parties.
7. Advertising; this revenue streams come from product fees from advertising a
particular product.
Third, each revenue streams has different pricing mechanisms. There are two main
types of pricing mechanism: fixed and dynamic pricing. Fixed menu pricing are based
on static variables. Examples of fixed menu pricing:
1. List price; fixed prices for individual products or other value proposition.
2. Product Feature Dependent; Price depends on quality of value propositions
features or the number.
20
3. Customer segment dependent; Price depends on type of customer segment.
4. Volume dependent; Price depends on the number of quantity purchased.
Fourth, variable pricing are pricing methods that change based on market conditions.
Some examples of variable pricing are:
1. Negotiation (bargaining): price depends on the power of negotiation between
two parties.
2. Yield management: this menu pricing depends on inventory and time of
purchase.
3. Real-time market: supply and demand play significant role to establish the
price.
4. Auctions; price come out from competitive bidding among the buyer.
II.3.9 Cost Structure
The last block is the cost structure. It describes all costs incurred to operate a business
model. All business model building blocks incur costs. Creating and delivering value,
maintaining customer relationships, generating revenue, get key resources, doing key
activities and build key partnerships. According to Osterwalder (2010) there are two
broad classes of business model cost structure and four characteristics of cost
structure. The two broad classes of business model are:
21
1. Cost-driven; Focus on minimizing costs wherever possible. Usually this cost
structure maintains the leanest possible cost structure, using low price concept
of value proposition, maximum automation, and extensive outsourcing.
2. Value-driven; Focus on value creation. Usually this cost structure has
premium value propositions and high degree personalized service.
The four characteristics of cost structure are:
1. Fixed costs; Costs that still exist wherever the products sold or not.
2. Variable costs; Costs that proportionally with the volume of goods or services
produced.
3. Economies of scale; Cost advantages that a business enjoy as its output
expands. Average cost per unit will lower as output rise.
4. Economies of scope; Cost advantages that a business enjoys due to a larger
scope of operations.
22
CHAPTER III RESEARCH METHODS
This study uses descriptive quantitative method to measure customer satisfaction. The
advantage for quantitative method is the research instrument consistency and average
respondent conclusion.
III.1 Level of Analysis
The analysis level of this study is customer. Researcher questioned the customer
satisfaction after receiving Eureka Interview‟s service. The service of Eureka
Interview was determined as follows:
1. Customer satisfaction in training methods,
2. Customer satisfaction in trainer performance, and
3. Customer satisfaction in training usefulness.
III.2 Type of Data
The data required for this study is primary data. It was obtained from the
questionnaire filled by Eureka Interview‟s customers.
III.3 Population and Sample
The population of this study was Eureka Interview customers during study period
(October 29th
2011 – January 28th
2012). All was taken as a research object.
23
III.4 Data Collection Methods
Data collection method which used in this study was questionnaire. The questionnaire
was printed and distributed to the respondents. They were asked to fill out the
questionnaires after Eureka Interview training. The questionnaire form is enlisted in
the appendix part of this report.
III.5 Quality of the Instruments
The questionnaire developed by researcher is based on the theory customer
satisfaction factors in service business (Potluri & Mangnale, 2011). Content validity
is used to assess the questionnaires‟ validity. The data validity and reliability was
tested using SPSS 19. The result of validity tests showed that KMO Sampling
Adequacy > 0.5 (0.552) and reliability test shows that cronbach‟s alpha > 0.7 (0.738).
It means that the questionnaires are valid and reliable.
III.6 Data Analysis Methods
There are some steps for data analysis in this study:
1. Data collection
2. Data input
3. Data checking
4. Data analysis using SPSS
5. Results analysis and discussion
Respondent answered questions using 10 point scale in rating format. Scale 9 and 10
means very satisfied, 7 and 8 satisfied, below 7 not satisfied. This classification is
adjustment from Reichheld (2003) classifications.
24
CHAPTER IV STRATEGY AND PLAN
According to Osterwalder (2010), the theory of business model is a guidance to create
profitable business. Profitable business is a result of mission, vision, and goals clarity
implemented in nine building blocks business model canvas. This chapter discusses
Eureka Interview mission, vision, goals, and the nine building blocks canvas.
IV.1 Mission, Vision, and Goals
Eureka Interview mission, vision, and goals summarize in figure 1.
Figure 1 Mission, Vision and Goals of Eureka Interview
Mission
“To be a partner of youngster to achieve their success with soft skills”
Vision
“To become worlwide company which improves youngster soft skills that
needed in business environment.”
Goals
“In 2021 Eureka Interview serve customers all of Java Island.”
“In 2031 Eureka Interview market scope in Asia.”
“In 2051 Eureka Interview market scope in Europe and America.”
“When peoples hear Eureka Interview, they will associate as their partner to
achieve success with soft skills.”
“Majority university students in this world will choose Eureka Interview
because their professionalism and hospitality.”
25
Eureka Interview mission is “To be a partner of youngster to achieve their success
with soft skills.” This mission already answered the fundamental questions of Lipton
(1996) concept. The fundamental questions were answered in Eureka Interview‟s
missions as follow:
1. Why an organization exists? To be a partner of youngster in achieving their
success.
2. Why it is in business? To be a partner in achieving youngster‟s success.
3. What is its purpose? To be a partner of youngster.
4. For whose benefit are all its efforts? To youngster and Eureka Interview as the
youngster‟s partner.
Eureka Interview vision articulation is “to become worldwide company which
improves youngster soft skills that needed in business environment.” This vision has
already answered the criteria of good vision. The criterions of good vision are focus
on the future, concrete foundation for the organization and communicate that the
business is special and different than the others (Collins & Porras, 1996). Vision
without execution is delusion. Eureka Interview executes the vision in its goals as can
be seen in figure 1. The goals of Eureka Interview have already had BHAG (Big,
Hairy, Audicious Goals) criteria. They are also clear and compelling. The goals have
serve as unifying focal point of effort and act as catalyst for team spirit. Every goal
has its own time limit and detail term.
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IV.2 Customer Segment
Eureka Interview‟s customer segment can be categorized as segmented market. The
customers of Eureka Interview are educated job seekers. They can be classified into
three sub-segments. These sub-segments have been reached from different
distribution channels and willing to pay different aspects for the offerings. The first
sub-segment is students who are usually at the end of their study. The second sub-
segment is educated job seekers who have already graduated from universities and
ready to enter the workforce. The third sub-segment is professionals who are trying to
find better opportunity for living in other company or having consideration in
changing their career paths.
IV.3 Value Propositions
Eureka Interview‟s value proposition was categorized in newness category. This
company has determined several problems that commonly occurred during job
interview. Those problems are: (1) job seekers are unprepared with job interview, (2)
job seekers have experienced job interview but always failed, (3) job seekers have
inappropriate manners, and (4) job seekers face difficulty in answering hard
questions. This business offers solution to overcome these problems by helping
customers‟ soft skills in job interview. During its trainings, Eureka Interview also
helping customers to build confidence, increase motivation and strengthen belief to
win the job interview.
27
Nowadays Eureka Interview focuses on job interview training which consists of three
products. The products are described as follows:
1. Job Interview Basic Training; Basic training curriculums are job interview
simulation, introduce yourself professionally and Eureka mind-set learning.
The duration of the training is five hours which is taken in one day.
2. Job Interview Premium Training; Premium training curriculums are job
interview simulation, introduce yourself professionally, Eureka mind-set
learning, advance communication technique and advance negotiation
technique. The duration of the training is ten hours which is taken in two days.
3. Job Interview Platinum Training; Platinum training curriculums are job
interview simulation, introduce yourself professionally, Eureka mind-set
learning, advance communication technique, advance negotiation technique,
communication in curriculum vitae and frequently asked question in
interview. The daily duration of the training is five hours which taken in four
times a month.
IV.4 Channel
Basic channel which utilized by Eureka Interview are communication and transaction
channels from company to the customers. At the moment, Eureka Interview chooses
to use its own channels rather than partner‟s channels. The examples of channel are
office, Internet, print advertising and mobile phone. The discussion about channels
utilized in Eureka Interview described as follows:
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1. Office; Eureka Interview‟s office opens during workdays (Monday –
Saturday) from 9 am to 3 pm. The office layout was designed in professional
yet cozy environment. This design was purposed to create comfortable
environment for customers to discuss and share about their problems in facing
job interview. It is also coherent with the value of Eureka Interview which is
hospitality. This office is located in a strategic area at Yogyakarta so
customers can get easy access.
2. Internet; Website, twitter and Facebook are the channels for Eureka Interview
in the Internet. Eureka Interview‟s website domain is http://www.eureka-
interview.com. In the website, customers can view Eureka Interview‟s
business profile, products, prices, payment methods and contact numbers
Eureka Interview‟s twitter username is @EurekaInterview. The twitter
account is updated with Eureka Interview‟s activity reports. It also gives free
job interview tips and tricks to the customers regularly. Customers can easily
communicate through this social network. The other social network media
that is used by Eureka Interview Facebook. The fan page domain is
http://www.facebook.com/EurekaInterview. The primary function of Eureka
Interview‟s social network media is to update the nearest schedule for
trainings. Especially for Eureka Interview‟s Facebook account, it is also
updated with pictures and videos of the previous trainings.
3. Print Advertising; Not only optimizing the internet, but Eureka Interview also
promotes their products using print advertising. The objective for using this
29
product as promotional tool is to raise society awareness toward Eureka
Interview as business entity and also its products. The kind of Eureka
Interview print advertisings are leaflets, posters, x-banners, and street banners.
4. Mobile Phone; there are two modes which used by Eureka Interview in
utilizing its mobile phone: active and passive modes. The activity in active
mode for example sending promo text messages to Eureka Interview
customers‟ database. While in passive mode‟s activity, the mobile phone
functioned as a communication device between Eureka Interview and the
customers.
IV.5 Customer Relationship
Customer relationship is aimed to provide better service to the customers. Eureka
Interview uses personal assistance, one type of customer relationship. Personal
assistance helps customers understand about Eureka Interview as a company and the
products served by Eureka Interview.
IV.6 Key Resources
Eureka Interview‟s key resources can be categorized as human capital key resources.
The key resources are trained trainers and good management. Trained trainers and
good management lead business become profitable and directed. Trained trainers
satisfied the customers. Satisfied customer means profitable business. Good
management operates business in an effective and efficient ways directed to
company‟s goals, vision, and mission.
30
IV.7 Key Activities
Eureka Interview key activity is problem solving. This is the most important action
which has to be taken by this company to succeed. Eureka Interview solves
customers‟ problems using trainings and consultations.
IV.8 Key Partnerships
Strategic alliance with non-competitor organizations help Eureka Interview grows
significantly. An example of strategic alliance is partnership with universities or
student organizations in the universities. This partnership gives access to potential
customers. As part of the partnership, Eureka Interview gives free training for the
students in the universities. The students can get benefit from the experience in free
job interview training while Eureka Interview can get benefit from the opportunity to
promote its products.
IV.9 Revenue Stream
Eureka Interview revenue stream represents the cash that this company generates
from educated job seeker customer segment. This cash is resulted from delivering
value to customers. Customers who access Eureka Interview‟s service paid certain
fees based on each product‟s type. This revenue stream type called fixed pricing
mechanism in product feature dependent. Fixed pricing for each Eureka Interview
products are Rp 150,000 for Job Interview Basic Training, Rp 500.000 for Job
Interview Premium Training, and Rp 1.250.000 for Job Interview Platinum Training.
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IV.10 Cost Structure
All Eureka Interview business model building such as creating and delivering value,
maintaining customer relationships, generating revenue, getting key resources, doing
key activities and building key partnerships incur costs. The cost structure of business
model is divided into two broad classes: cost driven and value driven. Eureka
Interview‟s cost structure was classified as value driven cost structure because as
showed in table 2, the majority of the business model blocks focused on value
creation. Table 2 below presented all costs that incurred in business model blocks of
Eureka Interview.
Table 2 Cost Structure
Building Blocks Fixed Cost (Rp) Variable Cost (Rp)
Value Propositions (Training Costs)
- Training Kit 10,000
- Food & beverages 15,000
- Food & beverages (trainer) 75,000
- Trainer fee 10% from total
revenue per training
- Rent training room 150,000
Channel
- Office 3,000,000
- Internet (website) 250,000
- Internet (promo) 500,000
- Print Advertising 400,000
- Mobile phone 50,000
Customer Relationship
- Social Media Community -
- Customer Service -
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Table 2 (continued)
Key Resources
- President Director salary 500,000
- Vice PD salary 450,000
- Administration and Finance
Director salary
400,000
- Network Director salary 400,000
- Art Director salary 400,000
Key Activities
- Training In value proposition
cost
- Consultation In channel cost
Key Partnerships
- Expand networks 50,000
Figure 2 Eureka Interview Nine Building Blocks
33
CHAPTER V STUDY RESULTS AND BUSINESS ACTION
This study was conducted in three months since October 29th
, 2011 until January 28th
,
2012. The numbers of total respondent were 43 people. They were Eureka
Interview‟s customers during this study period.
V.1 Study Results
Eureka Interview‟s customers who were also respondents of this study summarized in
Table 3.
Table 3 Customers Demography Summary
Type of Training Date Number of
Customers University Faculty
Job Interview 29 October 2011 29 UGM Economics and
Business
Job Interview 12 November 2011 4 UGM
Economics and
Business
1 UGM Forestry
Job Interview 19 November 2011 2 UGM Food
Technology
Job Interview 3 - 4 December 2011 1 UGM Engineering
Negotiation 30 - 31 December 2011 1 UNY English
Job Interview 18 -19 January 2012
2 UGM Economics and
Business
1 UGM Social and
Politics
Job Interview 27-28 January 2012 1 UGM
Economics and
Business
1 UGM Technic
Total Customers (Respondents) 43
34
The table in previous page showed that Eureka Interview‟s customers were majority
came from Faculty of Economics and Business UGM. Others customers were from
Food Technology, Forestry, Social Politics and Engineering Faculty of UGM. There
was one customer who studied in English Faculty UNY.
The customer satisfaction in this study is consists of three factors. They are customer
satisfaction in training methods, customer satisfaction in trainer performance and
customer satisfaction in training usefulness. The study results of these three factors
are shown as follow.
V.1.1 the Result of Customer Satisfaction in Training Methods
The result of customer satisfaction in training methods of Eureka Interview is
provided in table 4.
Table 4 Result of Customer Satisfaction in Training Methods
Rating Number of
Respondent Percentage
10 4 9.3%
9 15 34.9%
8 20 46.5%
7 4 9.3%
<7 - -
Mean 8.44
Mode 8
Source: Appendix 2
The result showed that in average, Eureka Interview‟s customers were satisfied with
its services. The mean of customer satisfaction in methods was 8.44. There was
55.8% respondents who rated 8 - 7 for Eureka Interview methods. It means majority
35
of customers were satisfied with Eureka Interview‟s methods. The others 44.2%
respondents rated 10 – 9 for Eureka Interview‟s methods, which means very satisfied.
None of them rated the method below seven. The results were consistent with
respondent comments. Some comments from respondent indicated that customers
were satisfied and happy with the methods. They said the overall methods are
effective, the active-learning method is interesting, the simulation method is
challenging, and the methods were applicable and relevant for job interview.
V.1.2 the Result of Customer Satisfaction in Trainer Performance
The result of customer satisfaction in trainer performance is provided in table 5. The
mean for trainer performance evaluation was 8.42. There was 58.1% respondents who
rated 8 – 7 for Eureka Interview‟s trainer performance. It means the majority of
customers were satisfied. The others 41.9% were rated 10 – 9 for Eureka Interview
trainer performance, which means they were very satisfied. None of them rated below
7.
Table 5 Result of Customer Satisfaction in Trainer Performance Results
Rating Number of
Respondent Percentage
10 4 9.3%
9 14 32.6%
8 21 48.8%
7 4 9.3%
<7 - -
Mean 8.42
Mode 8
Source: Appendix 2
36
The result is consistent with the respondents‟ comments. The respondents said that
the trainers were fun, attractive and interesting. On the other hand there are some
suggestions according to the trainer‟s performance. For training which included a lot
of participants (more than 20 people in one training), there was a tendency that the
trainer focused on one person during the training.
V.1.3 the Result of Customer Satisfaction in Training Usefulness
The result of training usefulness is provided in table 6. In average, customer
satisfaction rate in training usefulness was 8.79. Majority respondents (60.5%) rated
10 – 9 for Eureka Interview. It means majority of the respondent were very satisfied.
The other 39.5 % of the respondents rated 8 – 7 for Eureka Interview total usefulness,
which means respondent were satisfied in using Eureka Interview‟s service. None of
them rated below seven.
Table 6 Result of Customer Satisfaction in Training Usefulness
Rating Number of
Respondents Percentage
10 10 23.3%
9 16 37.2%
8 15 34.9%
7 2 4.7%
<7 - -
Mean 8.42
Mode 8
Source: Appendix 2
37
This result is consistent with the respondents‟ comments. There were a lot of
comments from customers regarding this topic. Respondents stated that Eureka
Interview trainings were very useful, impressive, cool, excellent and amazing. There
were some suggestions that were recorded from the respondents, such as increasing
the number of job interview‟s tips and tricks, providing after sales service and
inviting interviewers from multi-national companies.
V.2 Business Action
Eureka Interview‟s soft launching was held on October 28th
2011. Since the soft
opening and during research time (28 October 2011 – 28 January 2012) business
model canvas was implemented. There were some decisions which were taken by
Eureka Interview‟s management that affected nine building blocks implementation.
The implementations of nine building blocks from canvas business model are
explained below.
V.2.1 Customer Segment
Eureka Interview‟s target market is educated job seekers. During research period
some organizations had invited Eureka Interview to their campuses/offices to conduct
soft skills trainings. There were some training which related to job interview but
some were not. Eureka Interview‟s management decided to expand their target
market become university students, educated job seekers, professionals and young
entrepreneurs.
38
V.2.2 Value Propositions
Customer satisfaction‟s results showed the alignment between values proposition that
being planned and the one that being implemented in the real business. In the
product‟s side, two products have been added to Eureka Interview. There were
negotiation and presentation training. Each product consists of three sub-products
which are Basic Training, Premium Training and Platinum Training. The differences
between each sub-product are training duration, training curriculum and training
facility.
V.2.3 Channel
Office had not become a significant channel effect to brought value proposition to the
market. The effect to sales improvement was not good. Customers were not willing to
go to the management‟s office because they prefer to communicate using mobile
phone or meet in a public place like campus. Eureka Interview‟s management has
decided to move the office from R.10 University Club UGM (UC UGM) to Pogung
Baru A11, Kaliurang Street Km.5. This decision was considering capital resources
allocation.
Channels that have been proved to attract customers to Eureka Interview were print
advertising, word of mouth and internet. Internet has become a strategic information
channel to reach Eureka Interview easily. The website domain, twitter and Facebook
were free therefore it gives saving benefit to the management. These internet devices
have made Eureka Interview‟s customers convinced about the business. However,
Eureka Interview‟s Internet channel especially in website and Facebook has
39
difficulties for updating the content as planned before. These problems occurred
because the Internet channel was not becomes the first priority for promotion.
V.2.4 Customer Relationship
Eureka Interview‟s customer relation has a good role to attract customers. Some
selling process was supported by customer relation. However, Eureka Interview‟s
customer relation as one of personal assistance still in the customer acquisition phase.
The personal assistance was not good-implemented yet in customer retention and was
not able yet to boost sales using cross selling products.
V.2.5 Key Resources
Eureka Interview‟s customer satisfaction evaluation showed that trainers have good
attitude, good listener, fun, and well trained. These were shown in customer
satisfaction research results.
During research period, there was personnel replacement. The organization structure
in Eureka Interview‟s management now consists of President Director, Vice President
Director, Administration and Finance Director, Network Director and Art Director.
Excluding Art Director, the other four persons are capable to perform as trainers.
V.2.6 Key Activities
Eureka Interview has created Eureka Card as a guideline to the customers. Eureka
Card enlisted skills that customers must acquire during the trainings. It is also
functioned as controlling tool of training curriculums that were being delivered in
trainings.
40
V.2.7 Key Partnerships
Eureka Interview has been invited to some universities in Yogyakarta to conduct
some training. The Student Organization of Engineering Faculty UGM has invited
Eureka Interview in February and March 2012. Limitation of resources makes this
key partnership to other institutions was not optimally implemented yet. Eureka
Interview‟s management has made some decision changes at the beginning of the
year 2012 to solve this problem. Eureka Interview assigned network director to build
networking and to implement the potential partnerships. As result, Eureka Interview
now has an alliance with Swaragama Training Center (STC), the Strategic Business
Unit (SBU) of Swaragama FM radio station to organized job interview trainings.
V.2.8 Revenue Streams
Eureka Interview‟s revenue stream was majority come from Job Interview Premium
Training. It was about 70-80% from total revenue. In the contrary, there were no
customers who registered for Platinum Training yet. It could be happened because of
its price or inappropriate channel to offer this product.
V.2.9 Cost Structure
Eureka Interview‟s office channel was very costly. The cash was run out every month
since soft launching only for office rent. When the office has been moved to
Kaliurang Street Km.5, office cost can be eliminated. The others cost that changed
during time of study was internet promotion. Free resources had made Eureka
Interview can minimize cost structure. Now, Eureka Interview has made some
investments in print advertising cost.
41
CHAPTER VI CONCLUSION AND RECOMMENDATION
VI.1 Conclusion
There are some conclusions which come from this study‟s questions:
1. Are the customers of Eureka Interview satisfied with the services?
The evaluation stated that Eureka Interview‟s customers were satisfied with
Eureka Interview methods, trainer performance and total usefulness. It is a
good sign for Eureka Interview because it indicates that this business has an
opportunity to grow significantly in the future.
2. Is the business model of Eureka Interview implemented effectively?
Nine building blocks business model which was prepared to deliver value
added products to Eureka Interview‟s customers has been well implemented.
Customer segment and value proposition can be implemented precisely in the
market situation. The customer segments were existed and the value
proposition was really needed. However the development of new products
was not well-maintained yet.
Channel and customers relationship were the most difficult blocks to be
implemented. The prediction was not precise. There was a lot of unnecessary
cost which lost during the time of study. In the future Eureka Interview‟s
management should find better channel. Revenue streams have two more
additional sources of income in negotiation and presentation training. This
was an improvement to generate more income for Eureka Interview. Key
42
resources already have good standard for improvement in the future because
of the trainer‟s and management‟s.
Problem solving as the key activity in Eureka Interview‟s business is in good
level. The result of customer satisfaction supported this statement. Key
partnership has good progress during the study period because there were
some universities in Yogyakarta which had invited Eureka Interview.
However, the numbers of alliance organization were not significantly
improved.
VI.2 Recommendation
This study recommends Eureka Interview‟s management to precisely implementing
the nine building blocks concept. Even though there were some blocks that have been
well implemented, but there were some blocks that still need improvement. The
management should allocate resources to improve the second building blocks.
Customer satisfactions need to be maintained using after sales services. Customers‟
opinions from the questionnaire indicated that they all satisfied with Eureka
Interview‟s services. However, some distractions while delivering the services should
be surmounted in the future.
43
Some future recommendation actions that may become solution to Eureka Interview‟s
management are:
1. Build specific channel to increase platinum training‟s consumers.
2. Build appropriate channel to negotiation and presentation training services.
3. Build mechanism to evaluate referral customers.
4. Invest in office when supported by the financial cash flow.
The next research about customer satisfaction in start-up business should include
questions about consumers‟ willingness to refer product/service to colleagues, friends
or relatives. This is a better indicator for customer loyalty and will able to measure
word of mouth.
44
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APPENDIX
Appendix 1 Questionnaire
EVALUATION SHEET
1. What do you think about this training methods?
(1 very uninteresting dan 10 very interesting)
2. What do you think about the trainer performance?
(1 very uninteresting dan 10 very interesting)
3. What do you think about the traning usefulness?
(1 very uninteresting dan 10 very interesting)
IMPRESSION AND SUGGESTION
1 2 3 4 5 6 7 8 9 10
1 2 3 4 5 6 7 8 9 10
1 2 3 4 5 6 7 8 9 10
48
Appendix 2 Data Collection
No Kuesioner Pelatihan Pertanyaan 1 Pertanyaan 2 Pertanyaan 3
9 FT Okt 2011 7 8 9
10 FT Okt 2011 8 8 9
11 FT Okt 2011 8 8 9
12 FT Okt 2011 8 8 9
13 FT Okt 2011 7 8 9
14 FT Okt 2011 8 7 8
15 FT Okt 2011 8 8 8
16 FT Okt 2011 8 8 8
17 FT Okt 2011 8 8 8
18 FT Okt 2011 8 8 8
19 FT Okt 2011 8 8 8
20 FT Okt 2011 7 7 7
5 FT Okt 2011 9 8 9
22 FT Okt 2011 8 8 10
23 FT Okt 2011 8 8 9
2 BT Nov 2011 9 9 8
3 BT Nov 2011 8 9 10
4 BT Nov 2011 8 9 10
21 BT Nov 2011 9 9 10
6 BT Nov 2011 9 8 8
7 BT Nov 2011 8 7 9
8 BT Nov 2011 9 9 9
1 PT Des 2011 9 10 10
24 BT Des 2011 9 9 8
25 PT Jan 2012 9 9 9
26 PT Jan 2012 9 10 10
27 PT Jan 2012 9 9 9
28 FT Okt 2011 8 8 9
29 FT Okt 2011 9 9 10
30 FT Okt 2011 7 7 9
31 FT Okt 2011 9 8 8
32 FT Okt 2011 8 9 8
33 FT Okt 2011 8 8 9
34 FT Okt 2011 10 10 10
35 FT Okt 2011 8 8 8
36 FT Okt 2011 8 8 8
37 FT Okt 2011 10 9 8
38 FT Okt 2011 9 8 7
39 FT Okt 2011 8 9 8
40 FT Okt 2011 9 8 9
41 FT Okt 2011 10 10 10
42 BT Jan 2012 10 9 10
43 PT Jan 2012 9 9 9
49
Appendix 3 Descriptive Statistics
Statistics
Customer_Satisfaction_In
_Methods
Customer_Satisfaction_In
_Trainer_Performance
Customer_Satisfaction_In_Total_Us
efulness
N Valid 43 43 43
Missing 0 0 0
Mean 8,44 8,42 8,79
Mode 8 8 9
Customer_Satisfaction_In_Methods
Frequency Percent Valid Percent Cumulative Percent
Valid 10 4 9,3 9,3 9,3
9 15 34,9 34,9 44,2
8 20 46,5 46,5 90,7
7 4 9,3 9,3 100,0
Total 43 100,0 100,0
Customer_Satisfaction_In_Trainer_Performance
Frequency Percent Valid Percent Cumulative Percent
Valid 10 4 9,3 9,3 9,3
9 14 32,6 32,6 41,9
8 21 48,8 48,8 90,7
7 4 9,3 9,3 100,0
Total 43 100,0 100,0
Customer_Satisfaction_In_Total_Usefullness
Frequency Percent Valid Percent Cumulative Percent
Valid 10 10 23,3 23,3 23,3
9 16 37,2 37,2 60,5
8 15 34,9 34,9 95,3
7 2 4,7 4,7 100,0
Total 43 100,0 100,0