Anda di halaman 1dari 24


Measure and Measurement in Benchmarking of KREASI and KUR

( a study case in Perum Pegadaian and Bank Rakyat Indonesia )

Prepared By:
Dian Karina Sutrimo

International Business Administration Program

Faculty of Economics
Sam Ratulangi University


1.1 Research Background

Nowadays, actiivities of business become progressively tighter with the

existence of company competition to stay in the world of business. The impact of

globalization and economic development has pushed every company to be more

competitive than the others. This situation is already happening all over the world

even in Indonesia.

Indonesia as the developing country is influencing the business sector is

growth becoming faster. It also makes business be more innovative and creative to

stay alive. Every businessman has his own objective to reach his to make a profit.

Today’s companies, marketers and brands face an ever-changing

environment and with the continuing of the increase in consumers knowledge

about what they want and need. Companies should be more creative in their way

to offering products or services to their customers. A different perspective to

marketing is necessary to provide consumer effectiveness and efficiency in order

to attract cutomer’s awareness.

Competition happens in all business sectors. Each prospect is opened for

investors to compete with others. If the companies do not offering something new

and attractive to their customers, it is predictable that the customer will move to

other companies. What customers’ wants and needs are company’s priority to

provide. Outstanding marketing companies understand their customers’ needs and

wants. They conduct consumer research and benchmarking to analyze mountains

of customer sales, warranty and service data. Their people at all levels including

top management stay close to customers.

Therefore, many companies are challenged to launch products in the same

genre to prove to their customers which product is the best and making more

profitability than their competitors. Perum Pegadaian and Bank Rakyat Indonesia

are institutions that provide Credit feature for micro industry. It encourages the

writer to compare their products between KREASI (Kredit Angsuran Fidusia) and

KUR (Kredit Usaha Rakyat) and find out which one is the best-in-class


1.2 Research Problem

Based on the background above, this research will discuss more of the


1. Which KREASI (Kredit Angsuran

Fidusia) or KUR (Kredit Usaha

Rakyat) is the best product?

2. How does the performance of

KREASI (Kredit Angsuran

Fidusia) and KUR (Kredit Usaha

Rakyat) use the AHP method?

3. What are the key strengths for each

product in capturing the market

based on the criteria developed in

1.3 Research Limitation

This research comes with several limitations. First, this research is

proposed to compare a product to another product in the same category in Perum

Pegadaian and Bank Rakyat Indonesia whiches are KREASI and KUR. Second,

this research determined to find out which is the best product in performances.

And third, Analytical Hierarchy Process (AHP) is the research method to analyze

the data.

1.4 Research Objective

The objectives of this research is:

1. To find out KREASI (Kredit Angsuran Fidusia) or KUR (Kredit Usaha

Rakyat) is the best product.

2. To examine KREASI (Kredit Angsuran Fidusia) and KUR (Kredit Usaha

Rakyat)’s performance using AHP.

3. To examine the key stregths of each product in capturing the market based

on the criteria developed in AHP.

1.5 Research Usefulness

This research provides several benefits as follow:

1. Faculty of Economics.

To give contribution in the scientific work about the benchmarking in two

companies which have the same products to offer in the market.

2. Perum Pegadaian and Bank Rakyat Indonesia.

As inputs to both company Perum Pegadaian and Bank Rakyat Indonesia

to define marketing strategies based on market and customers needs.

3. Researcher

The researcher may have a better knowledge about marketing

implementation especially in benchmarking. It also can improve the

analytical ability of researcher.

4. Could be one of references for the next researchers whom using the same

subject as mine.

1.6 Literature Review

Several literatures are used in the supporting of the research. They provide

the grand concept and link between the previous research and this research.

“Marketing Activities: A Comparative Analysis of Engagement and Participation

Among Buyers, Non-Buyers and Non-Responders of the Federal Long-Term Care

Insurance Program”. US. Department of Health and Human Services (2005)

The study purpose is to analyze survey data collected by Long term Care

Partners from members of the federal family regarding the LTC insurance

offering available to them, the analysis focuses on the attitudes, opinions, and

motivations of both active employees and retirees who have enrolled in the

program (“buyers”), those who have expressed an interest in the program but

chosen not to enroll (“non-buyers”), and those who are members of the federal

family but have not enrolled or expressed any interest in doing so (“non-

responders”). This study also compare the results to available data from other
studies of non-federal buyers and non-buyersin both the individual and group

markets to determine the extent to which there are significant differences which

could influence both the marketing and future design of LTC insurance.

The vast majority of those federal family members surveyed had contact with or

participated in at least some of the promotional and/or educational activities

implemented by the program sponsors. As expected, individuals who participated

in more activities, which they also found helpful, were more likely to become

buyers of the program. A multivariate analysis of the factors associated with

varying levels of participation in promotional/educational activities further

supports this finding. This suggests that the extensive marketing and educational

campaign by the program sponsors did influence buying behavior, and in a

positive way.

“Benchmarking Performance in The Credit Function”. (Ronald K. Chung, Ph.D


This article examines benchmarking as a management technique that

advocates comparison of the company’s performance levels to those of superior

(best) performers. This type of comparison allows management to not only obtain

better insight on what type of activity is most valued by customers but also better

learn about best practices and identify performance gaps. Improvement plans

developed as a result will also be superior to the ones based on traditional

approaches using historical trends because companies are competing under a

constantly changing, competitive environment.

For functional departments such as credit and account receivalbe, benchmarking

serves as an important diagnostic and planning tool. It not only alows the credit

executive to better identify and gain insight into opportunities within the

department, but can also serve as a tool to facilitate effective communication.

The benchmarking process starts with the identification of key success variables

of the function. Revenue and costs are the key success factors in credit

department. The next is to identify the key performance variables. Performance

benchmarking is for the evaluation of efficiency on the task(s) performed. The

Credit Research Foundation has suggested a list of measures that can be used to

gauge the efficiency and effectiveness of tasks performed by the credit, collection,

and accounts recievable functions. These include: Collection effectiveness index,

bad debt to credit sales, active customer accounts per credit and collection

employee, annual operating costs per employee, operating cost per sales dollar,

day sales outstanding, annual check turnover per cash applicator, annual

transaction turnover per accounts recievable employee, annua deductions

(adjustments) turnover per cash applicator and deduction specialist, annual

accounts receivable operating cost per transaction, annual operating costs per

accounts receivable employee.

After identifying the key succesful variables and the appropriate companies, the

next step is the measuring of performance. Through a comparison of performance

measures, performance gaps are recognized. These performance gaps identify

areas where improvement may be possible.

While the goal of benchmarking is to identify companies with superior

performance, and to use their performance levels to identify problem areas and
establish performance targets, the benchmarking effort must be translated into

actions to achieve maximum benefit. To get the most from the benchmarking, it is

necessary to take a result-oriented approached that deploys a strategic plan

leading to the achievement of long term objectives. It is also important for the

company to rcognize that benchmarking is a learning experience and a continuous

process. In the continuously changing competitive business environment, it is

necessary for companies to benchmark periodically to ensure that they have not

fallen behind as a result of the progress achieved by other companies.

Credit, collection and accounts receivable executives in 90s must adapt to the

continuously changing business environment. They must take control and lead the

credit function to higher performance levels. Benchmarking provides a road map

to effective management and is an important tool for executives aiming to

enhance the performance of the credit function.

“Journal of Strategic Marketing . Taylor and Francis (2010)

Journal of strategic marketing publishes papers on key aspects of the

interface between marketing and strategic management. It is a vehicle for

discussing long-range activities where marketing has a role to play in managing

the long-term objectives and strategies of companies. The objectives of the

Journal are as follows:

1. To bridge the disciplines of marketing and strategic management, and

to address the development to knowledge concerning the role that

marketing has to play in the management of strategy.

2. To provide a vheicle for the advancement of knowledge in the field of

strategic marketing and to stimulate research in this area.

3. To consider the role of marketing as an orientation of management at

the strategic level of organizations.

4. Explore the overall management of the marketing function within total

corporate management, with particular focus on issues of concern to

marketing managers, directors, and vice presidents.

5. To publish state of the art papers, empirical research results, practical

aspects of theory, case studies, new methodological developments,

conceptual developments, and to encourage publish discussion on


“Benchmarking for Competitive Advantage. Robert J Boxwell Jr, New York:

McGraw-Hill. 1994. pp. 225. ISBN 0-07-006899-2.”

Benchmarking is a highly-effective structural approach to quality

engineering and management that is finding wide acceptance among managers

everywhere. It involves investigating industry's best practices, analyzing and

evaluating one's own operation for opportunities, and implementing an action plan

that includes the structure of goals, objective, and operating targets. This sure-fire

guide shows managers, engineers, and quality personnel what the benchmarking

process is all about, how it can help them, and how they can implement the

process in their organization--to achieve spectacular results.



2.1 Marketing

The word marketing was taken from the word Market. “Market is the set

of actual and potential buyers of a product or services”

Kotler, (2005:5) defined Marketing is a social and managerial process

whereby individuals and groups obtain what they need and want through creating

and exchanging products and value with others.

Kotler and Amstrong (2004) also argued that “Marketing means managing

markets to bring out profitable exchange relationships by creating value and

satisfying needs and wants.

In defining the marketing concepts, among them should be understood the

element of the core marketing concepts, and the relation between them. “The

elements of core marketing concepts are needs, wants, and demands; marketing

offers (product, services, and experiences); values and satisfaction; exchanges,

transaction, and relationships and markets.” (Kotler and Amstrong, 2004).

Figure 2.1 Core Marketing Concepts

Needs, wants, and


Marketing Offers
Markets Core
(Products, services,
Marketing Concepts
and experiences)

Exchange, Value and

transactions, and satisfaction
The most basic concept underlying marketing is that of human needs.

Human needs are states of felt deprivation, they include basic physical needs for

food, clothing, warmth, and safety; social needs for belonging and affection; and

individual needs for knowledge and self-expression. These needs were not created

by marketers; they are a basic part of human makeup. Wants are the form human

needs take as they are shaped by culture and individual personality. Wants are

shaped by one’s society and are described in terms of objects that will satisfy

needs. Wahen backed by purchasing power, wants become demands. Given their

wants and resources, people demand products with benefits that provide the most

value and satisfaction. (Kotler,, 2005:5)

In economics, marketing is part of the process of production and exchange

that is concerned with the flow of goods and services from producer to consumer.

In popular usage it is defined as the distribution and sale of goods, distribution

being understood in broader sense than the technical economic one. Marketing

includes the activities of all those engaged in the transfer of goods from producer

to consumer not only those who buy and sell directly, wholesale and retail, but

also those who develop, warehouse, transport, insure, finance, or promote the

product, or otherwise have a hand in the process of transfer.

According to Kotler (2003), “Marketing is typically seen as the task of

creating, promoting, and delivering goods and services to consumers and


2.2 Competitive Advantage

According to Kotler, et al (2005:462) competitive advantage is an

advantage over competitors gained by offering consumers greater value

than competitors offer.

To gaining competitive advantage requires delivering more value and

satisfaction to target consumers than competitors do.

2.3 Competitor Analysis

According to Kotler, (2005:463) Competitor analysis is the process of

identifying key competitors; assessing their objectives, strategies, strengths,

weaknesses, and reaction patterns; and selecting which competitors to attack or

avoid. Competitor analysis involves first identifying and assessing competitors

and then selecting which competitors to attack or avoid.

2.3.1 Identifying Competitors

Normally, identifying competitors would seem a simple task. At the

narrowest level, a company can define its competitors as other companies offering

similar products and services to the same customers at similar prices. Thus, Coca-

Cola might view Pepsi as a major competitor, but not the local bookstore down

the road. And Toyota might see Honda as a major competitor, but not Mercedes or


2.3.2 Assessing Competitors divided by four steps:

• Determining Competitors’ Objectives.

• Identifying Competitors’ Strategies

• Assessing Competitors’ Strengths and Weaknesses

• Estimating Competitors’ Reaction

2.3.3 Selecting Competitors to attack and avoid

A company has already largely selected its major competitors through

prior decisions on customer targets, distribution channels, and marketing-

mix strategy. Management now must decide which competitors to compete

against most vigorously.

2.3.4 Designing a Competitive Intelligence System

The competitive intelligence system first identifies the vital types of

competitive information and the best sources of this information. Then, the system

continuously collects information from the field (sales force, channels, suppliers,

market research firms, trade associations, Web sites) and from published data

(government publications, speeches, articles).

With this system, company managers will receive timely infromation

about competitors in the form of phone calls, e-mails, bulletins, newsletters, and


2.4 Benchmarking

According to Kotler (2005:465) Benchmarking is the process of

comparing the company’s products and processes to those of competitors or

leading firms in other industries to find ways to improve quality and performance.
Kotler and Keller (200 :323) defined Benchmarking is the art of learning

from companies that perform certain tasks better than other companies. The aim

of benchmarking is to copy or improve on “best practices”, either within an

industry or across industries.

Benchmarking involves seven steps:

1. Determine which functions to benchmark;

2. Identify the key performance variables to measure;

3. Identify the best-in-class companies;

4. Measure performance of best-in-class companies;

5. Measure the company’s performance

6. Specify programs and actions to close the gap; and

7. Implement and monitor results.

2.4 Conceptual Framework

Conceptual frameworks identifies and labels the important variables in the

situation that are relevant to the problem defined. It describes the connection

among variables. Sekaran (2003:97) noticed the theoretical framework is the

foundation in which the entire research project is based.

Measure and Measurement in Benchmarking

(a study case in Perum Pegadaian and Bank
Rakyat Indonesia)


Requirements Time Interest of Collateral Convenience

Length Loan
Analytical Hierarchy


Conclusion and Recommendation



3.1 Source of Data

There are several data collection methods, each with its advantages and

disadvantages. Problems researced with the use of appropriate methods will

greatly enhance the value of the research.

Sekaran (2003:223) noticed “data collection method is an integral part of

research design”. Every data collection needs some source of evidence. According

to Yin (1994) “there are six sources of evidence, namely, documents, archival

records, interviews, direct observation, participant observation and physical

artifacts. Off course not all of the sources will be appropriate for all cases”.

However, Yin (Ibid) pays intention to so called “triangulation” that is collecting

data at least from two sources in purpose to validate them. All of the data sources

on this research are gathered from primary data and secondary data. Sources of

evidence to obtain data necessary to answer the research question are

questionaires and inteviews (as primary data) and documents (as secondary data).
There are two types of data:

3.1.1 Primary data

Primary data are original data collected for the research problem. When

secondary data is not available or is unable to help answer the research questions,

primary data is collected, which is relevant to the study and research problem.

Primary data are data gathered for research from the actual site of

occurrence of events (Sekaran 2003:59). According to Malhotra (1999) “Primary

data are originated by researcher and used for the specific purpose”. The primary

data are collected from quetionnaires and face-toface interviews. The

questionnaire is a preformulated written set of questions to which respondents

record their answers, ususally within rather closely defined alternatives. The

questionnaire is an efficient data collection mechanism which measures the

variables of interest (Sekaran 2003:236). The questionnaires in this research were

personally administered questionnaires, to which the respondent reads the

questions and responds directly. The main advantage is the information can be

collected with completed responses with a short period of time.

Interview is one method of collecting data to obtain information on the

issues of interest (Sekaran 2003:225). According to Yin (1994) “the interview is

one of the most important sources of case study information”. The type of

interview is face-to-face interview with the main advantage of is that the

researcher can adapt the questions as necessary, clarify doubts, and ensure that the

responses are properly understood, by repeating or rephrasing the questions. The

researcher can also pick up nonverbal cues from the respondent. Any discomfort,

stress, or problems that the respondent experiences can be detected through

frowns, nervous tapping, and other body language unconsciously exhibited.

Queationaires and interviews are purposed to get consumer opinions about how

the prformances of KREASI and KUR.

3.1.2 Secondary data

Secondary data refers to information perpared by someone else that is

useful to support this research. The secondary data are needed to support the

primary data.

Data are data gathered such existing sources called secondary data

(Sekaran 2003:59). Secondary data are information collected by others for

purposes which can be different from ours (Ghauri 1995). Secondary data is not

gathered for the immediate study at hand but for some other purpose.

Documentation is considered as the secondary data. According to Yin

(1994) documents can be found in form of: letters, memoranda, agendas,

announcements and minutes of meeting, administrative documents, formal studies

or evaluations of the same “site” study, newspaper clippings and other articles

appearing in the mass-media. A researcher needs to remember to confirm and

augment evidence from other sources (Ibid). churchill and lacobucci (2005) divide

secondary data on two types, namely internal and external. Internal data is

originated within the firm, and external outside the company. Internal secondary

data have their advantages in their ready availability and low cost. This research is

going to use internal source of documentation in form of company’s data retrieved

from the company’s web sites. Data from articles, journals and the library are the
secondary data collected to support this research. The advantage of seeking

secondary data is it saves time and cost in acquiring information.

3.2 Population and Sample

The population and sample of this research are orientated to Manado’s

society. Categorization of the population and sample are the customers of Perum

Pegadaian and Bank Rakyat Indonesia.

• Population

Population refers to the entire group of people, events, or things of

interest that the researcher wishes to investigate. The population of

this research is Manado citizens as the customers of Perum Pegadaian

and Bank BRI whom using KREASI and KUR.

• Sample

A sample is a subset of the population Roscoe (1975) noticed sample

sizes larger than 30 and less than 500 are appropriate for most

research. The sample covers 100 respondents. Sample are 50

customers of Perum Pegadaian and 50 Bank Rakyat Indonesia in

Manado, they discuss about KREASI and KUR performances.

3.3 Definition of Variables

The first step in AHP is to ignore the other factors and the way to reach each

objective and evaluation criteria, and just to decide the relative importance of the
criteria by comparing each pair of criteria and ranking them on the following


Factors :

a. KREASI (Perum Pegadaian)

b. KUR (Bank Rakyat Indonesia)

The key performance variables to measure:

a.. Requirements

Requirements needed to process the proposal that forwarded to Bank Rakyat

Indonesia and Perum Pegadaian. And to defined which is the easiest procedure

between KREASI or KUR.

b. Time length to liquid the fund

How long the time needed to process the proposal that already forwarded to

Bank Rakyat Indonesia and Perum Pegadaian.

c. Interest of loan

How many percents of the loan that Bank Rakyat Indonesia and Perum

Pegadaian charged to their customers.

d. Collateral

What kind of collateral that Bank Rakyat Indonesia and Perum Pegadaian

defined as collateral.

e. Convenience

Refers to company’s effort in way to satisfying their customers wants and

needs. Criteria used in this research are

• Branch office: This represents the place where can be easily reached

by the customers.
• Services: This represents how good company trained their employees

in order to fulfill their customer’s needs.

3.4 Data Analysis

3.4.1 Analytical Hierarchy Process (AHP)

The Analytical Hierarchy Process (AHP), developed by Thomas Saaty is a

method for ranking decision alternatives and selecting the best one when the

decision maker has multiple objectives, or criteria, on which to base the decision

maker has multiple objectives, or criteria, on which to base the decision. Thus, it

answers rhe questin “Which one?” a decision maker usually has several

alternatives from which to choose when making a decision. The decision maker

usually would typically make a decision based on how the alternatives compare,

according to the several criteria. AHP is a process for developing a numeric score

to rank each decision alternative, based on how well each alternative meets the

decision maker’s criteria (Taylor 2007:370). The general mathematical process

involved in AHP is to establish preferences at each of hierachical levels. General

steps in Analytical Hierarchy Process (AHP) are:

1. Develop pairwise comparison, two alternatives are compared

according to the criterion, and one is prefered. These comparisons are

made by using a preference scale, which assigns numeric values to

different levels of preference. Then a pairwise comparison matrix

summarizes the pairwise comparisons for a criterion. The preference

scale for pairwise comparisons are as follow:

Preference Level Numerical

Equally preferred 1

Equally to moderately preferred 2

Moderately preferred 3

Moderately to strongly preferred 4

Strongly preferred 5

Strongly to very strongly preferred 6

Very strongly preferred 7

Very strongly to extremely preferred 8

Extremely preferred 9

2. Synthesization

The next step in AHP is to prioritize the decision alternatives within

each criterion. Steps in synthesization are:

a. Sum the values in each column of the pairwise comparison


b. Divide each value in each column of the pairwise comparison

matrices by the corresponding column sum-these are

normalized matrices.
c. Average the values in each row of the normalized matrices-

these are the preference vectors.

d. Combine the vectors of preference for each criterion into one

preference matrix that show the preference for each criterion.

3. Develop a pairwise comparison matrix for the criteria.

4. Compute the normalized matrix by dividing each value in each column

of the matrix by the corresponding column sum.

5. Develop the preference vector by computing the row averages for the

normalized matrix.

6. Compute an overall score for each decision alternative by multiplying

the criteria perference vector by the criteria matrix.

7. Rank the decision alternatives, based on the magnitude of their scores

computed in step 6

Taylor (2007:376) noticed that AHP is based primarily on the pairwise

comparisons on a decision maker uses to establish preferences between decision

alternatives for different criteria. The normal procedure in AHP for developing

these pairwise comparisons is for an interviewer to elicit verbal preferences, using

the preference scale.