FACTOR ANALYSIS ON CONSUMER BEHAVIOR
AND DECISION TO BUY SAMPOERNA MILD
CIGARETTES PRODUCT
Submitted to Faculty of Economic and Business as partial requirement to achieve Degree of Economic (SE)
By:
Rio Trisasmita
5010081100001
MANAGEMENT INTERNATIONAL CLASS PROGRAM DEPARTMENT
FACULTY OF ECONOMICS AND BUSINESS
STATE ISLAMIC UNIVERSITY SYARIF HIDAYATULLAH
JAKARTA
DECLARATION SHEET
The undersigned here:
Name : Rio Trisasmita NIM : 5010081100001 Faculty : Economic Major : Management
Thesis Title : Factor Analysis on Consumer Behavior and Decision to Buy Sampoerna Mild Cigarettes Product
Hereby, I declare that the results of Thesis writing that I have made is a result of my own works and true authenticity. If in my writing thesis is the result of plagiarism, or plagiarism of other people's work, then I am ready to accept the sanctions under disciplinary rules.
Thus, I make this statement in a conscious state and not forced.
The Writer
Today is Friday, September 3rd, 2010 A Comprehensive Examination has been conducted on student:
1. Name : Rio Trisasmita 2. Student Number : 5010081100001 3. Department : Management
4. Thesis Title : Factor Analysis on Consumer Behavior and Decision to Buy Sampoerna Mild Cigarettes Product
After careful observation and attention to appearance and capabilities relevant for the comprehensive exam process, it was decided that the above student passed and given the opportunity to continue to thesis as one of requirements to obtain a Bachelor of Economics in the Faculty of Economics and Business Syarif Hidayatullah State Islamic University Jakarta.
Jakarta, September 3rd, 2010 Board of Comprehensive Exam
Prof. Dr. Ahmad Rodoni, MM Chairman
DR. Ahmad Dumyati Bashori MA Secretary
CERTIFICATION OF THESIS EXAM SHEET
Today is Tuesday, December 14th, 2010 A Comprehensive Examination has been conducted on student:
1. Name : Rio Trisasmita 2. Student Number : 5010081100001 3. Department : Management
4. Thesis Title : Factor Analysis on Consumer Behavior and Decision to Buy Sampoerna Mild Cigarettes Product
After careful observation and attention to appearance and capabilities relevant for the comprehensive exam process, it was decided that the above student passed and given the opportunity to continue to thesis as one of requirements to obtain a Bachelor of Economics in the Faculty of Economics and Business Syarif Hidayatullah State Islamic University Jakarta.
Jakarta, December 14th 2010
Prof. Dr. H. Ahmad Rodoni (______________________)
19690203200112.1.003 Examiner I
M. Arief Mufraini, Lc, M.si (______________________)
19770122200312.1.000 Examiner II
Prof. Dr. H. Abdul Hamid, MS (______________________)
Prof. Dr. H. Ahmad Rodoni (______________________)
19690203200112.1.003 Chairman
DR. Ahmad Dumyati Bashori MA (______________________)
19700106200312.1.001 Secretary
Prof. Dr. H. Abdul Hamid, MS (______________________)
Curriculum Vitae
Personal details
• Name Rio Trisasmita
• Sex Male
• Place, Date of Birth Palembang, December 21st 1988
• Marital Status Single
• Health Perfect
• Religion Moslem
• Address Jl. Raden Saleh IV Blok C no.4 RT04/RW05 Sukmajaya Depok 16412
• Mobile +62857 1024 4090
• Phone +6221 770 8495
• Email heavenaboveme@live.com
Basic Education
• 2003 – 2006 SMUN 2 Cibinong Kabupaten Bogor, Indonesia
• 2006 – 2009 International Business Management student in College of Business UUM, Malaysia
• 2009 – 2011 Thesis course (topic : Factor Analysis on Consumer Behavior and Decision to Buy Sampoerna Mild Cigarettes Product) in
business management UIN Syarif Hidayatullah Jakarta, Indonesia
Organizational experience
• 2003 – 2006 Member of OSIS in SMUN 2 Cibinong, Kab. Bogor
• 2006 – 2009 Member of Indonesian students in UUM - Malaysia (PPI- UUM), Member of International affair in UUM – Malaysia
Qualifications
• Computing & internet (Ms. Word, Ms. Excel, Ms. Power point, browsing jurnal & article, and etc)
• Language with Active fluent English skills
Abstract
Consumer behavior study is based on consumer buying behavior, with the consumer playing the three distinct roles of user, payer and buyer. A greater importance is also placed on consumer retention, customer relationship management, personalization, customization and one-to-one marketing. Social functions can be categorized into social choice and welfare functions.
The most important characteristic of a social function is identification of the interactive effect of alternatives and creating a logical relation with the ranks. Marketing provides services in order to satisfy customers. With that in mind, the productive system is considered from its beginning at the production level, to the end of the cycle, the consumer.
Foreword
Praise to Allah Almighty that gave me the opportunity to be able to present a thesis, which will be a reference for the introduction of Marketing Management activities. A hope and peace is always devoted to Prophet Muhammad and his relatives, his friends, and his people until the end of time. An appreciation for me to publish this thesis as the embodiment of enriching and also contributing the treasury for the development of consumer behavior analysis activities in the country in particular and the Marketing Management world in general.
The economy starts rising up since human beings live in societies and exchange different kind of goods in order to maintain their daily life. This economy has known several steps from the creation of barter to what is known today, with financial and international markets.
In our modern and actual societies, this economy is surrounding every single citizen. They grow up with it, they work into it and thanks to that they are able to buy what they need and what they want. A lot of different companies of several sizes, national or international propose and sell items that is needed to survive (food, clothes and so on) or wishes according to people’s tastes (holidays at the beach, video games, etc). Every single day, consumers are tending to buy those goods or services. The consumer behavior is affected by a lot of different factors. The aim of companies, whatever their products or services are, is to sell as many items as they can and in order to do so they will try to affect their actual and potential consumers to make them want to buy what they produce. In our actual environment companies tend to internationalize themselves a lot to earn more power, and the impact they wish to create on consumption might become more difficult because of the different cultures earn by each different geographic region.
TABLE OF CONTENTS
A. Consumer Behavior Description……….. 4
B. Factors that Influence Consumer Behavior……… 6
C. Types of Consumer Behaviors……… 13
D. Stages in the buyer decision process……….. 14
E. Decision making in purchasing ……….…….……… 16
F. Result of Previous Studies …………. …..………. 17
G. Theoretical Framework …….……… 18
H. Hypothesis ……….. 19
CHAPTER III RESEARCH METHODOLOGY………. 21
A. Identification and definition of conceptual variables …... 21
B. Operational definitions of variables ……….. 22
C. Research Scope ……..………..…………. 24
D. Research Sites ….……….. 24
E. Population and Sampling Technique ……… 24
F. Data Resources ……….. 25
H. Data Analysis Technique ………..….. 26
CHAPTER IV ANALYSIS AND DISCUSSION……… 30
A. Research object ……….………. 32
B. Research Analysis results ………. 41
CHAPTER V CONCLUSSION AND SUGGESTION………. 45
A. Conclusion ……….. 45
TABLE OF FIGURES
Table 2.1 Model of Consumer Behavior ………. 6
Table 2.2 Internal factors that influence consumer behavior ………. 8
Table 4.1 Respondents based on time of consumption ………. 34
Table 4.2 Respondents based on age ………. 35
Table 4.3 Respondents based on gender ………. 35
Table 4.4 Respondents based on status of residence ………. 36
Table 4.5 Validity and Reliability Test Instruments ………. 37
Table 4.6 Respondents answer on price variation (X1) ………. 38
Table 4.7 Variations in respondents' answers to product ………. 40
Table 4.8 The frequency distribution of trust / attitude ………. 42
Table 4.9 Frequency distribution of buying decision variable ………. 43
1
CHAPTER I
INTRODUCTION
A. Background Research
In life, humans can’t escape from their various levels of needs, like physiological needs, social needs, needs to have, the need for self-esteem and the need to actualize themselves. From some of these needs, physiological needs cover the need to eat, drink, physical protection, breathing, and sex. Which are the most basic needs.
Humans are always driven by their basic needs and environmental influences in which they lived. The needs nature is instinctive, for example such as a person who feels hungry and thirsty do not need to be notified that they needed food and drink but instinctively they will find the goods that can satisfy them or their needs. Whereas in fulfilling its satisfaction, the consumer doesn’t consume only staple goods but also likes to consume other secondary goods such as cigarette for smokers in particular, because smoking is almost becoming a staple at this time.
2
Mild Cigarette is one of the popular cigarette products for consumer because of superior taste, typical attractive packaging, and their packaging varies in mild 12 and mild 16. The low levels of nicotine and tar of 15 mg tar and 1 mg of nicotine is lower than other cigarettes, and also because it produces some variations form of cigarettes like Sampoerna Kretek or Sampoerna filter with their own superior taste characteristics. Sampoerna Mild cigarette products made in this variety forms adapted to the tastes of consumers that also varied, which is always changing along with the changes in the environment, or in accordance with consumer behavior itself.
3
B. Problem Formulation
Based on the background described above, the formulations of the problems are:
1. What factors that influence consumer towards the decision to purchase Sampoerna Mild cigarettes?
2. What is the most dominant factor to be used as the basis of purchasing decisions of consumers against Sampoerna Mild products?
C. Research Objectives
The purposes of this study are:
1. To know the factors that influence consumers in deciding to purchase Sampoerna Mild tobacco products.
2. To find the most dominant factor this is used as the basis of consumer decision in buying Sampoerna Mild tobacco products.
D. Research Utility
Given by this research, it is expected to provide inputs, especially for the following parties:
1. For companies
As an input for improving the quality of Sampoerna Mild cigarettes by knowing the consumer behavior towards the tobacco products offered.
2. For other parties
The result is expected to be a reference material, particularly for those who interested in issues concerning consumer behavior.
3. For Researchers
4
CHAPTER II
BASIC THEORY
A. Consumer Behavior Description
Consumer needs and desires related to consumer attitudes and behavior. Consumer attitudes and behavior have a significant role in determining the right marketing strategy. Changes in people's income as a consumer, frequency of purchase, the advancement of education, ease of transportation and communication, social relationships that increasingly widespread leads to changes in consumer behavior and tastes. The term consumer behavior is often used to describe the behavior of people who buy and use goods and services.
Many experts provide understanding of consumer behavior, one of them is by Amirullah (2003), “factors that influence consumer purchase decisions is simply divided
into two parts, namely a) the internal forces, such as: experience, learning, personality and self-concept, motivation and involvement, attitudes and desires, b) external force , such as: cultural factors, social, environmental, economic, and marketing mix.”
According to Henry Assael cited by Sutisna (2002) Factors explaining the choice of individual consumers to purchase a product is influenced by the idea of variables (needs, motivations, attitudes, perceptions) and consumer characteristics (demographics, lifestyle, personality).
5
Consumer behavior is a very complex activity, because there are many variables that the influence and interaction must be realized. When the understanding of consumer behavior can be done then the company will be able to achieve much greater profits than its competitors, because by understanding their consumer behavior, companies can give better satisfaction to the consumers. To that end, the marketer should at least understand the consumer behavior model below:
Table 2.1
Source: Kotler and Armstrong (1992:159)
6
B. Factors that Influence Consumer Behavior
1. Internal Factor
Consumer behavior significantly influence by culture, social, characteristic, and psychological factors. In order to know the detail from these factors, we can see the figure below:
Table 2.2
7
Source: Kotler (1997:153) a) Culture factors
According to Kotler (1997:153), Cultures is a symbol and complex fact that created by human, descended generation to generation as a determiner and human’s behavior regulator in their existing community/environment. Culture factors have the widest and deepest influence towards consumer behavior, because culture is the desire determination factor and the most basis thing from person behavior. Cultural factors consist of:
1) Culture
Culture is the most fundamental determinant of desires and behavior; culture refers to the values, ideas, symbols that have meaning to communicate, development and evaluation as members of the public.
2) Sub-Culture
Each subculture consists of small subcultures that provide more specific identification and socialization of its members. Subculture includes: nationality, religion, racial groups, and geographic regions.
3) Social class
8
their membership to a caste." Social class is measured as a combination of jobs, income, education, wealth, and other variables.
b) Social factors
Teguh according Kotler and Roni A. Rusli (1997: 157) translated: consumer
behavior is also influenced by social factors, such as: 1) Reference group
Consisting of a reference group all groups that have a direct or indirect effect resulting from the interaction of formal and informal establishment or a person's behavior.
2) Family
The orientation of the family indicates the involvement of spouses and other family members in decision-making process.
3) The Role and Status
A person participates in the various groups in his life: family, club or organization. The position of people in each group can be defined in terms of roles and status.
c) Personal Factors
According to Kotler and Armstrong translated by Bakowatun (1992:161) states that "Personality as a psychological characteristic that is different from someone causes relatively consistent and enduring responses to the environment."
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1) The age and stage of the lifecycle
Is the level of the stages of life that passes the family when grow at all times. 2) Job
The work that chose by someone will affect their patterns of consumption, so the company can perform specialization in offering their products.
3) Consumer economic conditions
In making the purchase, consumer can’t be separated from their own economic conditions, where economic conditions are sufficient to demonstrate a certain ability consumer goods and services.
4) Life Style
Lifestyle reflects something more social class-oriented and lifestyle also represents the people who generally interact with their environment.
5) Personality and Self Concept
Personality is unique psychological characteristics that cause a response from someone who is relatively consistent and stay on their own environment. Personality is usually described with congenital traits such as confidence, diversity of respect, social conditions, power, adaptability and emotional stability.
d) Psychological factors
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From those five factors stated above, it can be explained as follow: 1) Motivation
A need will be a motif when it has reached enough level of intensity. The motive or impulse is the need for sufficient lead one to act.
2) Perception
According to Kotler that translated by Wasana (1991: 248), perception is defined as "an individual process to select, organize and interpret information inputs to create a meaningful picture of the world”. Perception bridges someone to prove the reality of human impulse received by the five senses. Responses on the perception of each person are different due to the impulsion of admission selection process.
3) Knowledge
According to Kotler et.al translated by Tjiptono (1999:242) argues that: "Knowledge describes the change in the behavior of certain individuals which is come from experience." The theory of knowledge taught traders that in order to create demand for products and correlates with strong drive, it is important to use the instructions that motivates and provide positive empowerment.
4) Beliefs and attitudes
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wrong beliefs and lest creates a bad impression of the brand and the product itself. One's attitude in the face of a product can be divided into two: a positive attitude and negative attitude. A positive attitude means happy with the product, whereas a negative attitude doesn’t like the product concerned.
2. External Factors a) Price
According to Kotler and Armstrong that translated by Nurmawan (1997: 339) "Price is the amount of value to consumers in exchange for the benefits of owning or using a product or service."
One of the factors that affect consumer-buying interest is the price. The price is the determining factor in market demand for products or services because it can affect its market share. For manufacturers, the price should be able to provide results by creating revenue and net income.
According to Tjiptono (1997: 152):
Price has two main functions in the decision-making of the buyers of the assignment of function and role information.
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2) The role of pricing information, which is a function of price in educating consumers about the factors such as quality products. This is particularly useful where customers are facing difficulties to assess a product or its benefits in an objective manner. Perception that often occurs is: “High price reflects high quality”.
b) Product
According to Kotler and Armstrong which is translated by Bakowatun (1992:347) "Product is something that can be offered to the market to get attention, which will be purchased, used or consumed in order to satisfy the desire or need."
According to Kotler and Armstrong, translatied by Bakowatun (1992: 350): the product can be divided into three groups according to their form, namely:
i. Perishable goods
Perishable goods are usually consumed in one or more times only. Example: food and beverage.
ii. Durable goods
Durable goods are used for long periods of time and usually persist until several times of use, e.g. consumer goods: clothes, household items.
iii. Services of goods or services
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C. Types of Consumer Behaviors
The decision of consumers varies greatly depending on the type of purchase decision. In accordance with Kotler’s opinion that was translate by Wasana (1991: 253); there are four types of consumer behaviors depending on the degree of participation of the buyer on the purchase and the degree of difference between a varieties of brands. The four types are:
1. Complex behavior of consumer
Consumers will have a complex behavior when they are becoming more involved in the purchase and realize the important difference between several brands of existing products. Consumers will be involved in the activities of purchase, if the purchased products are expensive and very memorable. Sellers have to develop strategies to help the buyer in the study of characteristics rather than groups of products, the relative level of importance and the position of the brand that stands out among the features that are most important.
2. Consumer behavior that reduces the incompatibility
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3. Consumer behavior based on habit
Consumers are less involved in purchasing the product. They come, choose and buy direct. This is because of their habit. Consumers in these cases were not by beliefs, attitudes or a series of unusual behavior. Marketers take advantage of promotional products and sales price as an incentive for buyers who want to try to buy the product. 4. Consumer behavior that seek diversity
In some buying situations, consumer involvement is low, but it is characterized by significant brand differences. Consumers often do brands change. This brand substitution occurs solely to obtain diversity not because of dissatisfaction.
D. Stages in the buyer decision process
Consumer behavior will determine the decision making process in purchasing them. Consumers in every purchase do not always do this process, but the process is only done in certain situations. For example, on the first purchase of goods that has a high price. These stages according to Engel that translated by Budiyanto (1994:31) consists of: ". Introduction to the problem, information seeking, alternative evaluation, purchase decision and purchase behavior management".
They can be explained as follows: 1. Introduction to the problem
15
in the consumer, need to be driven by impulse from outside or from within the consumer-external and internal factors.
2. Information seeking
A consumer who began their interest may be intrigued to find much more information, if there is a consumer impulse to purchase the product. Otherwise, that consumer needs precipitates in their memory and consumer may not attempt to obtain more information.
3. Alternative evaluation
At this stage, consumers face several alternatives for the valuation of trademarks. In this electoral process, there are some basics to help clarify the process of evaluating consumer, among other properties of the product, confidence in a brand, utility function, the consumer in the selection of alternatives assessment procedures.
4. Purchasing decision
After the above steps done, then it is time for the consumer to determine the attitudes in the decision whether to buy or not. Considered that the decision made is buying, the buyer will see a series of decisions on product, brand, seller, quantity, time of purchase and payment method.
5. Purchase behavior management
16
E. Decision making in purchasing
The decision to buy or not a product, especially that have the impact for many people, will need more people to get involved in the decision making process.
Tjiptono opinion (1995:23) describes some possible role played by people in their
buying decision: 1. Initiator
Beneficiary of the initiative is the person who suggested for the first time or thought about buying a product or service in particular.
2. Influencer
A person who give the influences, a person that their views or suggestions often taken into account in making a final decision.
3. Decider
Decision maker is someone who determines most or all purchasing decisions, to buy or not, how to buy and where to buy.
4. Buyer
Buyer is someone who did the actual purchase. 5. User
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F. Result of Previous Studies
Research conducted on families residing in the Tegal Parang, Mampang. Determinations of the number of respondents from 70 questionnaires distributed, only 60 families bought this product Sampoerna Mild cigarette, so the 60 respondents used as a sample. In this study, there are 4 (four) variables, the product variable (X1), price (X2),
family (X3) as well as attitudes and beliefs (X4). From the calculation, the value of r =
18
G. Theoretical Framework
The theoretical framework in this research can be show on the picture 2.1: Picture 2.1
Theoretical Framework
Data
Material for questioner
Questioners
Conclusion
Finish Classic Assumption test
Regression Test
Valdity Test Reliability Test
PRICE, PRODUCT, BELIEFES AND ATTITUDES, DECISION TO BUY,
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H. Hypothesis
1. PRICE
H0 : b1 = 0, there is no significant influence between price toward decision to
buy Sampoerna mild.
H1 : b1≠ 0, there is significant influence between price toward decision to buy
Sampoerna mild.. 2. PRODUCT
H0 : b1 = 0, there is no significant influence between product toward decision
to buy Sampoerna mild..
H1 : b1 ≠ 0, there is significant influence between product toward decision to
buy Sampoerna mild.. 3. BELIEFES AND ATTITUDES
H0 : b1 = 0, there is no significant influence between beliefs and attitudes
toward decision to buy Sampoerna mild..
H1 : b1≠ 0, there is significant influence between beliefs and attitudes toward
decision to buy Sampoerna mild. 4. Simultan
H0 : b1: b2: b3: b4:= 0, there is no significant influence between price,
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H1 : b1 :b2: b3: b4: ≠ 0, there is significant influence between price, product,
beliefs and attitudes toward decision to buy Sampoerna mild.
The decision is:
If Sig / Probabilities > 0,05 mean Ho received.
If Sig / Probabilities < 0,05 mean Ho rejected
Or
If thitumg< ttabel mean Ho received
21
CHAPTER III
RESEARCH METHODOLOGY
A. Identification and definition of conceptual variables
1. Variable Identification
In this study, there are only two variables. They are independent variables and the dependent variable.
a. Independent variable (X): price (X1), product (X2), beliefs and attitudes (X3)
b. Dependent variable (Y): the buying decision
2. Definition of Conceptual Variable a. X1 = Price
According to Kotler and Armstrong, which was translated by Nurmawan (1997: 339) price is “Number value to consumers in exchange to get the benefits of owning or using a product or service”.
b. X2 = Product
Based on the opinion of Kotler and Armstrong, which was translated by Bakowatun (1992: 347) product is "something that can be offered to the market to
draw attention to be purchased, used or consumed to satisfy a desire or need."
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According to Kotler and Armstrong, translated by Bakowatun (1995:246), trust or belief is "a descriptive thought about something while attitudes are evaluations, feelings and someone who is relatively consistent trend towards an object or idea."
d. Y = purchase decisions as dependent variable
Translated by Bakowatun according to Kotler (1992:202) "The decision to buy is considered as an action taken by consumers after an evaluation of all available alternatives that resulted the desire to buy".
B. Operational definitions of variables
1. Independent variable
The independent variable (X) in this study is the factors that influence the behavior of consumers to purchase products Sampoerna mild cigarettes, namely:
X1 = Price, with the indicator:
Compliance with quality and satisfaction rates X2 = Product, with the indicator:
Taste
Various tastes Size and Packaging
X3 = Belief / trust and attitude, with the indicator:
Impression or image of the consumers towards product
23
disagree and strongly disagree. Used in this way because it is easily to understand and value the diversity of his trademark, allowing respondents to express their opinions about the decision variable product related to the purchase of Sampoerna Mild cigarettes that actually closer to reality. Fifth assessment will be given weight values as follows:
a. Strongly agree was scored 5 b. Agree was scored 4
c. Quite agree was scored 3 d. Disagree was scored 2
e. Strongly disagree was scored 1
2. Dependent Variable
Dependent variable (Y) in this study was the decision to buy Sampoerna Mild cigarettes. The decision to buy is the actions taken by individuals, groups or organizations where their attempt is to meet the needs of goods and services and followed by purchasing power and customer satisfaction. The decision to buy Sampoerna mild cigarettes indicators is: to buy Sampoerna Mild tobacco products, within a month.
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For a more targeted research and facilitate further study, this research is limited to the field of marketing management, in particular matters related to consumer behavior regarding the factors that influence consumer behavior in deciding to buy Sampoerna Mild cigarettes.
D. Research Sites
The study was conducted on the campus environment of the Faculty of Law, Pancasila University, Lenteng Agung - Depok. The author’s considerations in determining the location of the study are:
1. A large number of students of the Faculty of Law at the Pancasila University Depok who purchase Sampoerna Mild tobacco products.
2. The big difference of motives between the purchases of every student's in buying Sampoerna Mild tobacco products.
E. Population and Sampling Technique
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According to Arikunto (1993:114): In collecting data, researcher will contact the subjects who meet the requirements of the characteristics of the population, regardless of where the origin of the subject (as long as it is still in the population). Typically, they are contacting the subject that easy to find, so that data collection is easy. The important note is the fulfillment of the amount (quota) has been determined.
With the consideration due to the availability of time, limited money and effort, the author was forced to limit the number of research subjects.
According to Sutrisno Hadi and Seno Pamardiyanto (1994:276) a sample technically can be seen as a large sample where N ≥ 30, which means that samples have been eligible normality in a study.
F. Data Resources
1. Primary data
Primary data is a data collected and processed by the author that obtained directly from respondents. Primary data in this study include: data description of the respondents, the answers listed in the questionnaire, related to: prices, products, beliefs/trust and attitudes.
2. Secondary data
Secondary data is data obtained indirectly or from other parties associated with the object of research to support the primary data. Secondary data used by the author usually comes from: television, newspapers, books in the library.
26
To obtain accurate and relevant data, a good data collection technique is needed as well. Techniques of data collection used were:
1. Interview
This method is carried out by direct interviews with the parties concerned, namely the students of the Faculty of Law Pancasila University Depok that were selected as respondents.
2. Observation
Observation is a technique of collecting data by direct observation of the object of research.
3. Questionnaire
Questionnaire method is done by distributing questionnaires to the respondents to determine the response of respondents to the questions posed by the author.
H. Data Analysis Technique
1. Qualitative data analysis
An analysis technique by provides a description, images, illustration and interpretations in order to obtain a conclusion.
2. Quantitative Data Analysis
Analysis technique using a number that consists of: a. Validity and reliability test
27
with total score. Instruments declared valid by comparing the value of product moment
correlation (r count) with r-value table for the level α = 5%, i.e. if the value of r count> r table.
Reliability indicates the extent to which reliable gauge or show how far gauges consistency. Reliability test use the Alpha Crobach method. Instruments declared reliable if the price of Alpha coefficient reaches at least 0.6 (Nurgiyantoro, 1999:312).
b. Multiple linear regression analysis
To determine the extent to which the price variable (X1), product (X2) as well
as beliefs and attitudes (X3) influence the decision to buy (Y) used multiple linear
regression analysis.
According Nurgiyantoro (2000:276): Formula:
Y = a + b1X1 + b2X2 + b3X3...(1)
Description:
Y = buying decision a = constants
b1,b2,b3 = regression coefficient
X1 = price variable
X2 = product variable
X3 = trust/belief and attitude variable
To test the This means there is no
28
the hypothesis: the independent variable (X1
mers in the decision to purchase (Y). to Damodar Gujarati (1998:20):
...(2)
F-count compared with F-tabel nt coefficient
variables ount
is with F test, the hypothesis was formulated as
→ no significant effect between the independe variable on the dependent variable.
→ there’s a significant difference between the independent variable on the dependent varia
d. T – test
To test the dependent variable (
According S Formula:
t-count = ...
Where:
b = regressi Sb = standard
Testing criteria:
Ho : bi = 0 → variable Ha : bi ≠ 0 → variable Ho received if –ttable <
29
the effect of independent variables (X1, X2,
le (Y) T - test is used.
Sumodiningrat (199:223):
...(3)
ssion coefficient
ard error of regression coefficient
ble X have no significant effect towards variable
ble X have significant effect towards variable Y
< tcount < ttable and vice versa.
CHAPTER IV
, X3) partially on the
able Y
30
ANANLYSIS AND DISCUSSION
A. Research object
1. Description of Respondent
The sample of respondents in this research are 50 people, here are presented the characteristics of respondents based on the time of consumption of Sampoerna Mild tobacco products.
Table 4.1
Respondents based on time of consumption
Period Quantity Percentage
Less than 1 year Between 1 - 2 years More than 2 years
3 7 40
6 14 80
Total 50 100
Source: Processed primary data
Based on the above table shows that most of the 40 respondents (80%) had smoked Sampoerna Mild more than 2 years, 7 respondents (14%) between 1-2 years and the remaining 3 (6%) of respondents using the product of Sampoerna Mild less than one year.
Here are the characteristics of respondents by age of existing research sample of 50 respondents.
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Respondents based on age
Age Quantity Percentage
Younger than 20 years old Between 20 – 25 years old
From the above data indicate that the sample of 50 respondents mostly aged 20-25 years old, are 37 respondents (74%) while the remaining 13 respondents (26%) aged younger than 20 years old. Based on the gender characteristics of the respondents will be presented in table 3 are as follows:
Table 4.3
Respondents based on gender
Gender Quantity Percentage
Male
From table 3 above, it can be observed that the majority of respondents are male, which are 46 respondents (92%) and the rest of the 4 respondents (8%) female.
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Respondents based on status of residence
Residential Status Quantity Percentage Rent
Private house/parents house/family
40 10
80 20
Total 50 100
Source: Processed primary data
From table 4 above, it can be seen that most of respondent’s residential status are living in house for rent / contract; which are 40 respondents (80%) while the remaining 10 respondents (20%) the status of living are live with family or parents.
2. Validity and Reliability Test Instruments
The validity of the instrument shows the extent of the measuring device (instrument) capable of measuring the variables measured. Testing the validity of using
the product moment correlation technique by correlating the score of each item with total
score. Instruments declared valid by comparing the value of product moment correlation
(r count) with value of r table for the level α = 5%, i.e. if the value of r count> r table.
Reliability indicates the extent to which the instrument gauges unreliable or shows how far gauge consistency. Reliability test will be using Alpha Crobach
method. Instruments declared reliable if at least the Alpha coefficient (at least) reached 0.6 (Nurgiyantoro, 1999:312). The result of instrument validity and reliability can be presented in the following table:
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Validity and Reliability Test Instruments Variable Figure Correlation value
(r count)
Alpha Coefficient= 0,8785 Reliable
X2
Alpha Coefficient= 0,8691 Reliable
X3
Alpha Coefficient= 0,8262 Reliable
Y
Alpha Coefficient= 0,8902 Reliable
Source: Processed primary data (Appendix 3 and 4)
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items that are used can measure variables so that all the questions otherwise valid. Reliability test results indicate that the figure used are reliable because the value of coefficient alpha greater than 0.6.
3. Descriptive variable
Results of questionnaire distributed to the respondents explained that the next sample could be viewed as a response to price, product and beliefs and attitudes and purchasing decisions.
a. Price (X1)
Distribution of respondents scoring responses to variable pricing (Attachment 5) is presented in the following table:
Table 4.6
Respondents answer on price variation (X1)
FIGUR
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Where:
X1.1 = the price of Sampoerna Mild cigarette is reasonable
X1.2 = price reflects the quality
X1.3 = satisfaction towards the price
X1 = price
The variation of respondents' answers about Sampoerna Mild Cigarettes with reasonable price, the result shows that 11 respondents are strongly agreed (22%), 20 respondents (40%) agreed, 10 respondents (20%) stated quite agree, 8 respondents (16%) states disagree and the remaining 1 respondent (2%) stated strongly disagree if Sampoerna Mild cigarettes is cheap.
The response of respondents to the price of Sampoerna Mild cigarettes accordance with the quality mostly results that strongly agree response are more that 18 respondents (36%), 19 respondents (38%) agreed, and 12 respondents (24%) stated quite agree and the remaining 1 respondent (2 %) declared disagree on the price of Sampoerna Mild cigarettes in accordance with its quality.
Similarly, the satisfaction of the price offered the company acquired the majority states agreed: 9 respondents (18%), 20 respondents (40%) stated quite agree, and 15 respondents (30%) said disagree, the remaining 6 respondents (12%) states strongly disagree or dissatisfied with the price set by the company.
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b. Product (X2)
Distribution of respondents scoring responses to variable products (appendix 6) are presented in the following table:
Table 4.7
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product, variety or a variety of products and interest in the size and packaging. The variation of the respondent's answer to the quality of the products obtained as the 11 respondents (22%) stated strongly agreed, 23 respondents (46%) agree, 9 respondents (18%) stated quite agree, 6 respondents (12%) said disagree, and the remaining 1 respondents (2%) stated strongly disagree on the quality of cigarette products Sampoerna Mild.
The result of variations in the response of respondents about the taste of cigarettes Sampoerna Mild obtained the highest results of 10 respondents (20%) stated strongly agree that cigarettes Sampoerna Mild tastes good, 26 respondents (52%) of all respondents agreed, 7 respondents (14%) said quite agree, 5 respondents (10%) said disagree, the remaining 2 respondents (4%) stated strongly disagree.
Respondent’s perception about the variety or various tastes that provided by Sampoerna Mild cigarettes resulted as follows: 15 respondents (30%) state strongly agree, 14 respondents (28%) state agreed, 9 respondents (18%) state quite agree and 7 respondents (14%) state disagree, while the rest of respondents state strongly disagree.
The result of respondent’s response about their interest in size and packaging that made by Sampoerna Mild cigarettes product are: 14 respondents (28%) state strongly agree, 15 respondents (30%) agreed, 11 respondents (22%) quite agree, 7 respondents (14%) disagree and the rest of 3 respondents (6%) state strongly disagree if their interest towards Sampoerna Mild cigarettes are based on the size and packaging of the product.
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product based on the quality of the product, product taste, various tastes and also interest in size & packaging are 33 respondents (65%). With those results, the respondents declared that they could accept Sampoerna Mild cigarettes product.
c. Trust / attitude variable (X3)
The frequency distribution of respondents answer towards trust / attitude can be described as follow:
Table 4.8
The frequency distribution of trust / attitude (X3)
Variable Score
Source: Processed primary data (Appendix 5)
The respondent answer distribution about their trust toward Sampoerna Mild cigarettes product is good to consume are 10 respondents (20%) state strongly agree, 19 respondents (38%) agreed, 14 respondents (28%) quite agree, 6 respondents (12%) disagree, and the rest of 1 respondent (2%) state strongly disagree.
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agreed, 2 respondents (4%) said disagree, while the remaining 1 respondent (2%) stated strongly disagree or do not believe that product quality of Sampoerna Mild cigarette is good.
Beliefs (trust) / attitudes of respondents to the problem of quality and taste of Sampoerna Mild cigarettes in deciding the purchase obtained results of 15 respondents (30%) stated strongly agreed, 22 respondents (44%) agreed, 11 respondents (22%) stated quite agree and 1 respondent (2 %) states dis agree, while the remaining 1 respondent (2%) stated strongly disagree.
Overall the respondents trust or attitude toward cigarette products Sampoerna Mild if seen from the results of the distribution of answers to each question, most of the 33 respondents (65%) have confidence in the products of Sampoerna Mild cigarettes.
d. Buying decision variable (Y)
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Table 4.9
Frequency distribution of buying decision variable (Y) FIGUR
Source: Processed primary data (Appendix 5)
Most of the respondents agreed to said as someone who often buy products Sampoerna Mild cigarettes obtained results 20 respondents (40%) stated strongly agreed, 11 respondents (22%) agree, 7 respondents (14%) stated quite agree and 3 respondents (6%) states disagree, while the rest of 9 respondents (18%) stated strongly disagree that they often buy Sampoerna Mild cigarettes products.
Within one month of the respondents that buy Sampoerna Mild cigarettes above 10 units are 20 respondents (40%) said they strongly agreed to buy Sampoerna Mild cigarettes in one month more than 10 units, 13 respondents (26%) agree, 7 respondents (14 %) stated quite agreed, 2 respondents (4%) said disagree, 8 respondents (16%) stated strongly disagree.
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strongly agreed, 12 respondents (24%) stated strongly disagree, 11 respondents (22%) expressly agrees and 7 respondents (14%) stated quite agree, while the remaining seven respondents (14%) said disagree.
Overall purchase decision against Sampoerna Mild tobacco products by the results of the distribution to each question answered, the majority of 30 respondents (58%) are people who always buy Sampoerna Mild cigarettes.
B. Research Analysis results
1. Regression analysis
The results from using SPSS for Windows can be presented in the table below: Table 4.10
Summary of regression analysis result Independent Variable Regression Dependent Variable = Buying decision (Y)
Ftable (α = 0,05) = 2,84
ttable (α = 0,05) = 2,021
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Regression analysis was used to determine the influence of price, product and trust / attitudes towards the buying decision. Regression equations derived from data analysis are as follows:
Y = -1.639 + 0,406 X1 + 0,459 X2 + 0,520 X3
Constant (a) = -1639 show high purchasing decisions if there is no influence of price, product and beliefs / attitudes. The constant negative value indicates that consumers would not buy without considering the price, product and beliefs / attitudes.
Based on table 6 above also can be seen that the regression coefficient of each independent variable is positive means that prices, products, beliefs / attitudes have a positive influence / direction to the decision to buy, meaning that the better the respondents' perceptions of price, product or belief / attitude will cause purchasing decisions of consumers toward products Sampoerna Mild cigarettes.
The value of multiple correlation coefficients (R) of 0.857 indicates a very strong relationship between price, product and beliefs / attitudes with buying decisions. The results of analysis obtained value Fcount = 42.542 while the value Ftable = 2.84 so Fcount >
Ftable so prices, products and beliefs / attitudes have a significant relationship with the
decision to buy.
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2. F – test
F test used to test the effect of price, product and beliefs / attitudes toward buying decisions. Results obtained by analysis Fcount value = 42.542, while for the level α = 5% is
obtained Ftable value = 2.84 so Fcount > Ftable means Ho is rejected that means prices,
products and beliefs / attitudes significantly affect buying decisions, thus it can be said that the consumer buying decision determined by prices, products, beliefs / attitudes toward cigarette products Sampoerna Mild.
3. t – test
Furthermore, testing the effect of each independent variable on the dependent variable is done by t-test at level α = 5%.
a. Price (X1)
Tcount value of 3.396 while the value Ttable = 2.021 so Tcount > Ttable so that Ho is
rejected it means the price has a significant influence (significant) towards a buying decision.
Regression coefficient value of 0.406 indicates that price has a direct influence on purchase decisions; the meaning is more appropriate price so more high-quality consumer purchase decision against Sampoerna Mild tobacco products. b. Product (X2)
Tcount value of 3.235 while the value Ttable = 2.021 so Tcount > Ttable so that Ho is
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Regression coefficient value of 0,459 indicates that the product has a direct influence on purchase decisions, meaning the better the perception of respondents about the quality of products Sampoerna Mild cigarettes, the higher consumer purchasing decisions on cigarettes Sampoerna Mild.
c. Trust (belief) / Attitude (X3)
Tcount value of 2.765 while the value Ttable = 2.021 so Tcount > Ttable so that Ho is
rejected it means belief / attitude have a meaningful impact (significant) towards a buying decision.
Regression coefficient value of 0.520 indicates that the beliefs and attitudes have a positive effect (direction) against the decision to buy, meaning that the higher the consumer confidence of Sampoerna Mild Cigarettes product the higher the consumer purchase decision on cigarettes Sampoerna Mild.
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CHAPTER V
CONCLUSION & SUGGESTION
A. Conclusion
Based on the results of research, testing and discussion of research on consumer behavior can be deduced as follows:
1. From the calculation of the coefficient of determination (R) of 0.735, which means that changes in purchasing decisions (purchase frequency) of 73.5% showed a strong relationship between price (X1), product (X2), beliefs and attitudes (X3) with purchase decisions (Y). While the rest 26.5% are influenced by other variables not included in the study. It is shown from the results obtained by analysis Fcount value = 42.542, while for
the level α = 5% = 2.84 Ftable values obtained so Fcount> Ftable means jointly prices;
products, beliefs and attitudes significantly influence the decision to buy cigarettes Sampoerna Mild.
2. The value of multiple correlation coefficients (R) of 0.857 indicates a very strong relationship between price, product and beliefs / attitudes with buying decisions. The results of analysis obtained value Fcount = 42.542 while the value Ftable = 2.84 so Fcount>
Ftable so prices, products and beliefs / attitudes have a significant relationship with the
46
3. Regression equation was derived from data analysis are as follows: Y = -1,639 + 0,406X1 + 0,459X2 + 0,520X3
a. Constant (a) = -1.639 has a meaning if there is no price effect (X1), product (X2),
beliefs and attitudes (X3), then there is no reason for consumers to purchase tobacco
products Sampoerna Mild.
b. Constant (X1) = 0.406 indicate that prices have a direct influence on purchase
decisions, the meaning is more appropriate price so more high-quality consumer purchase decision against tobacco products Sampoerna Mild.
c. Regression coefficient of the product (X2) = 0.459 indicates indicates that the product
has a direct influence on purchase decisions, meaning the better the perception of respondents about the quality of products Sampoerna Mild cigarettes, the higher consumer purchasing decisions on cigarettes Sampoerna Mild.
d. Regression coefficient beliefs and attitudes (X3) = 0.520 shows the confidence and
attitude have a positive effect (direction) against the decision to buy, meaning that the higher the consumer confidence of Sampoerna Mild Cigarettes product the higher the consumer purchase decision on cigarettes Sampoerna Mild.
4. With tcount test of the three variables (product, price, beliefs and attitudes), then the result
is that the most dominant factors that influence the decision to buy cigarettes Sampoerna Mild is a factor of trust and attitudes shown by tcount> ttable i.e. 2.765> 2.021 and
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B. Suggestion
The suggestions put forward as follows:
1. Consumer behavior is constantly changing along with the development time. Therefore, companies must become more responsive and adaptive to the needs and desires of consumers so they do not switch to other mild cigarette products.
2. Sampoerna Mild cigarette products need to improve the archipelago taste and flavor from other countries so that consumers will continue to consume tobacco products of Sampoerna Mild.
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Membeli Produk Mie Instant Indomie (Dikelurahan Bareng Kecamatan
