KnE Social Sciences | The First International Research Conference on Economics and Business (IRCEB) | pages: 426–432

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1. INTRODUCTION

The economic development is increasing rapidly right now. That development is related to economy sector like service sector. Kotler (2009) explained that service is an activity or benefit that can be offered by one side to other side and basically it is intangible and also does not have an effect on the ownership. On the other hand, service has a different characteristic with other physical product. The characteristics are: intangible, inseparable, have many variations, have not long duration [7].

Music studio business can be classified as the service institution because it is fulfilled the service criteria, the product can be tasted, have no effect on ownership and the consumption process is at the same time with the production process. Heaven's Drive, Antz, and Virtuoso music studio is the subject of this study. Lately, the development of event in Malang is increasing rapidly. It starts from walking, bazar, workshop, live music, wedding, and others events that need tools and sound system. Music studio has a role as the tools and sound system provider that is needed in those events. It is like amplifier, jack cable, microphone, guitar, guitar bass, drum, audio mixer, stage, sound monitor, sound out and hanging sound that are needed in the big event. In this case, the provider re the music studio that leases the event tools in Malang.

Basically, profit is the main purpose of the businessman when running their business. The production process is done efficiently with the purpose to get maximum profit. It is not related to the producer that applies the social capital elements such as trust and reciprocity. social capital is the total resource, actual, that assemble in individual or group because they have strong relation in reciprocity and the institutionalization confession. On the other opinion, Fukuyama (1995), social capital is the values or informal norm that is owned together between the group members that are possible to involve the cooperation between them. social capital is the values or norms that are happened in behavior that can encourage the ability and capability to cooperation and coordination to generate the big contribution in the productivity sustainability [15]. Social capital showed to the social organization part like trust, norm, and network that can improve the people efficiently by facilitating the coordinated action [13]. Rossiter et al. (2011) showed that in Florida, businessman in music industry have their own motivation to run the business and it is out of control in economy social factor. The freedom of creativity is the main thrust of businessman in music industry. The friendship relationship can help the formation of music industry through the correct strategic creativity concept to get the creativity and inspiration also reach the personality satisfaction. In Spain, Martínez-Cañas et al. (2012) described that crowdfunding activity or collective action based on the trust allowed the businessman to have some benefits like fund access, avoid the financial risk, overcome the duty, and more information to identify the audience.

The explanation of Amerika Serikat and Spanyol, the social capital practice also felt in the music industry in Malang, especially in music studio. In music studio, social capital often happens between music studio and customer. One of the most happening is trust with each other. Trust can appear because the studio owner is humble or it was built in a long time like have the same vision and mission, intensive meeting because the businessman have the reciprocity expectation with customer; the businessman and customer have worked in many times. The trust will increase the strength and competitiveness, also happen the reciprocation without afraid about cheating [5]. With the trust and reciprocity elements, it can make the transaction with abnormal lease price, not match with lease duration, and not match with the choice of lease specification by tools and sound system provider.

2. METHOD

Study method used is a qualitative descriptive method. A qualitative descriptive is to understand what phenomenon that is happened in subject. This study is about behavior, perception, motivation, action and others (Moleong, 2011). On the other hand, descriptive study is a study about collecting the information about a symptom status that exists in the symptom condition based on the reality when it is done [2].

In the research data carried out on the natural setting, the primary data resources and data collection techniques are more on the role of observation and in-depth interviews, and documentation, as presented by Marshall, et al. in Bachtiar (2010) are explaining the fundamental methods relied on by qualitative researcher for gathering information are, participation in the setting, direct observation, in-depth interviewing, document review.

For checking the data validation, this study used data triangulation. Triangulation used in this study is triangulation with three data source, it means to compare and verify the degree of confidence in a redesigned information obtained through different sources. Refers to the data source used in this study means three data sources in question are the visitors, studios employees and owner of Heaven's Drive music studio, Antz, and Virtuoso.

Based on the study, it describes in objective the actual reality of the social capital phenomenon and the implementation in Heaven's Drive, Antz and Virtuoso music studio. In this study, the writer uses a case study as the type of study which is the writer expects to understand the social capital and the implication on Heaven's Drive, Antz, and Virtuoso music studio.

3. RESULTS AND DISCUSSION

The Social Capital Analysis on Music Studios in Malang City

According to music studio in Malang, the trust between studio music and customer is very important. According to Heaven's Drive music studio, trust can be in form that customers will not accidentally damage the tools in Heaven's Drive music studio. On the other hand, in Antz music studio, the owner explains that build the trust between Antz studio and customer is accordance with their concept. The Virtuoso music studio explains that the trust on customer can make the customer come back again to lease in Virtuoso studio. It encourages the music studio to give a price reduction or add the specification on the consistency customer that lease the product of the studio. The trust between music studio and customer can make the music studio understand more information without cost. It is related by Fu (2004) that explained that trust in personality can make the exchange information got easier.

The music studio is Malang and the customer will exchange the kindness. The studio music will give the price reduction and add the specification on the customer even lease the tools or equipment with free payment to the consistency customer that lease the tools in that music studio. The music studios have a reason because they want to help Malang musicians that do not have good equipment when they will go on show. The customer can give the promotion on that music studio because they are given the price reduction or specification added. Puspitasari (2012) explained that exchange the kindness or reciprocity between group or individual is based on the altruism, means the spirit of help and the importance of other. The exchange kindness concept will not reach the point if there is not based in the trust.

The network gives the significant contribution on the music studio mindset in Malang City in giving the price reduction specification added without add the cost on the customer. Music studios in Malang City have the reason when they give the price reduction or specification added because the music studios want to be a participant in the development of music in Malang City. They admit that the development of music will not reach the goal if there is no good education for musician about equipment to play the music. So that, the music studio often give the price reduction or specification added to the musicians that lease in their music studios.

The businessman on music industry in Malang have their own motivation to run the business. They are out of the general view that the businessman that run the business is to generate the profit. Rossiter et al. (2011) explained that music studio owner in Florida have their own motivation to run the music business. The friendship relationship can help to make the business music with strategic creativity concept to reach the personality satisfaction. Music studio in Malang, the beginning concept of music studio in Malang was based on the encourage of friend owner to establish the music studio. The music studio in Malang give the price reduction and specification added because they want to develop the music in Malang so that it will be like the competitor.

The Advantage of Social Capital Implementation on Music Studio

Martínez-Cañas et al. (2012) explained that businessman that apply the social capital component like trust have some advantages such as, fund access, avoid the financial risk, overcome on duty, and more information to identify the audience. In Malang, music studio that applies the social capital in transaction with customers will get free promotion that is done by customer who has been given the price reduction/specification added. This promotion will suggest the music studio to others to lease the studio music product that applies the social capital in customer. This automatically promotion will be interested for new customer to lease the music studio product that apply the social capital on customer.

When customers have finished the lease of studio to practice, they will not go as fast as possible, sometimes there are some conversations between customer and music studio. This conversation tends to be a sharing moment. Based on the conversation, music studio will get more information to identify the customer without cost. It is like sharing about the favorite equipment in Malang musicians. It is possible to get more customers because music studio apply the social capital to get more information about market.

4. CONCLUSION

Trust is a component of social capital that can affect the lease price, lease duration, and specification added. Music studios in Malang have the trust in the customer that they will not accidentally damage the tools of music studio. Music studios in Malang have a concept to treat the customer as their family. Music studios expect by giving the trust on customer, they will come back again to use the service.

In Malang, the music studio and customer will exchange the kindness. It is related by social capital component that is reciprocity. The music studios will give the price reduction/ specification added/ duration added to the old customer. For the customer that has been given the price reduction can promote the music studio to their friends, bands that need to lease the music studio or recording.

The music studios in Malang give more facility or discount to the customer because they want to be a participant to develop the music in Malang. They think the development of music can be reached if the musicians do not get a good education from music studio, the place that they usually practice. That reason is correct with social capital such as network because music studios want to develop the music industry network in Malang as good as the competitor.

The social capital components are trust, reciprocity, and network has the effect on lease normal price, lease duration, and the choice of lease specification. Music studios in Malang that apply the social capital in transaction with customer to get more information about market and get the promotion without cost.

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ISSN: 2518-668X