ANALYZING THE KEY FACTORS AFFECTING COSTUMER PURCHASE INTENTION TOWARD LOW COST
GREEN CAR PRODUCT
By
Muhammad Shandy Aussie 13111004
BACHELOR’S DEGREE
in
BUSINESS ADMINISTRATION
BUSINESS ADMINISTRATION AND HUMANITIES
SWISS GERMAN UNIVERSITY Edu Town BSD City
Tangerang 15339
Revision after the thesis defense on 6th August 2015
Muhammad Shandy Aussie STATEMENT BY THE AUTHOR
I hereby declare that this submission is my own work and to the best of my knowledge, it contains no material previously published or written by another person, nor material which to a substantial extent has been accepted for the award of any other degree or diploma at any educational institution, except where due acknowledgement is made in the thesis.
Muhammad Shandy Aussie
___________________________________________
Student
Date
Approved by:
Fiter Abadi, BE, MBA
___________________________________________
Thesis Advisor Date
Dr. rer. nat. Linus Pasasa
___________________________________________
Thesis Co-Advisor Date
Prof. Eric Jos Nasution, MBA, MA, PhD
__________________________________________
Dean Date
ANALYZING THE KEY FACTORS AFFECTING CUSTOMER PURCHASE INTENTION Page 3 of 92 TOWARD LOW COST GREEN CAR PRODUCT
Muhammad Shandy Aussie ABSTRACT
ANALYZING THE KEY FACTORS AFFECTING CONSUMER PURCHASE INTENTION TOWARD LOW COST GREEN CAR PRODUCT
By
Muhammad Shandy Aussie Fiter Abadi, BE, MBA, Advisor Dr. rer. nat.Linus Pasasa, Co-Advisor
SWISS GERMAN UNIVERSITY
This thesis identifies which factors that significantly affecting consumer purchase intention toward Low Cost Green Car (LCGC) product. This thesis comparing several variables namely perceived quality, environmental concern, price and brand image and their effect on customer intention to purchase LCGC’s. Finally, this thesis determines the strategy to be implemented by the LCGC’s manufacture to enhance customer intention towards LCGC’s.
This thesis is descriptive study using quantitative approach. Primary quantitative data are collected by distributed questionnaires. While the secondary data are gathered from textbooks, journals, newspaper and articles. The quantitative data was analyzed using SPSS software and AMOS.
Overall, all variables included are shown a strong influence to the customer purchase intention, particularly the influence from brand image of LCGC’s manufacture and environmental concern. Considering this result, LCGC’s manufacturer should focus more on emphasizing brand image and the beneficial of using LCGC’s for environmental concern to enhance customer intention towards LCGC’s product.
Keywords: Perceived quality, Environmental concern, Price, Brand image, Purchase intention and Low Cost Green Car
Muhammad Shandy Aussie
© Copyright 2015 by Muhammad Shandy Aussie
All rights reserved
ANALYZING THE KEY FACTORS AFFECTING CUSTOMER PURCHASE INTENTION Page 5 of 92 TOWARD LOW COST GREEN CAR PRODUCT
Muhammad Shandy Aussie DEDICATION
I dedicate this research to my parents and to my beloved country, Indonesia.
Muhammad Shandy Aussie ACKNOWLEDGEMENTS
First of all, I would like to express my deepest thanks to Allah SWT for his blessing on me and for giving me strength to accomplish this research.
I would like to thank my parents who always help, motivate and give valuable prayers for me in doing my thesis until I finish it. Thank you also to my sister and brother in law that help me in checking my grammar and always give me advice.
My most sincere appreciation and thanks conveyed to my thesis advisor Fiter Abadi, BE, MBA for advice and guidance for my thesis from the start until it is done. He always pushes me to finish my thesis on time and he teaches me how to work fast. I would also like to thank to Dr. rer. nat. Linus Pasasa as my co-advisor for his statistical support. My sincere thanks to Michael Roberts,CELTA for his grammar correction and for assisting me in my thesis writing.
I have to thank my best friends Putra and Nur Afni who help me in distributing the questionnaires until it was all collected to finish my thesis survey. Also thank to my housemate Rizki for always accompanying me in doing my thesis.
Last but not least, thank you Monica Pricilia for always helping me to do my thesis until it finished. Even, it had a hard time but finally we finish our thesis completely.
And thanks to all my friends in Marketing class and batch 2011 that we finally reach our last step in university.
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Muhammad Shandy Aussie TABLE OF CONTENTS
Page
STATEMENT BY THE AUTHOR ... 2
ABSTRACT ... 3
DEDICATION ... 5
ACKNOWLEDGEMENTS ... 6
TABLE OF CONTENTS ... 7
CHAPTER 1 - INTRODUCTION ... 13
1.1 Background... 13
1.1.1 Economic Growth in Indonesia ...13
1.1.2 Customers Trend ...15
1.1.3 Purchasing Power ...15
1.1.4 Mobility ...16
1.1.5 LCGC Regulation in Indonesia ...17
1.1.6 Market Share of Automotive product in Indonesian Market ...17
1.2 Research Problem ... 19
1.3 Research Questions ... 20
1.4 Research Objectives ... 20
1.5 Research Scope and Limitation ... 20
1.6 Significant of the Study ... 21
1.7 Structure of the Thesis ... 21
CHAPTER 2 - LITERATURE REVIEW ... 23
2.1 Framework of Thinking ... 23
2.2 Consumers Behavior ... 24
2.2.1 Consumers Decision Process ...24
2.3 Purchase Intention ...27
2.4 Quality ...28
2.4.1 Perceived Quality ...28
2.4.2 Car Safety ...29
2.4.3 Design and features ...30
2.4.4 Durability ...30
2.5 Environmental Concern ... 31
2.5.1 Fuel Consumption ...32
2.6 Price ...32
2.6.1 Cost of Maintenance ...33
Muhammad Shandy Aussie
2.9 Table of Previous Study ... 35
2.10 Study Differences... 37
2.11 Research Model ... 37
CHAPTER 3 – RESEARCH METHODS ... 38
3.1 Type of Study ... 38
3.2 Unit Analysis ... 38
3.3 Population and Sampling ... 39
3.4 Type of Data and Collection ... 40
3.5 Variable Operationalization ... 41
3.6 Data Analysis ... 43
3.7 Validity and Reliability ... 43
CHAPTER 4 – RESULTS AND DISCUSSIONS ... 44
4.1 Brief Background of LCGC’s ... 44
4.1.1 Toyota Agya ...45
4.1.2 Daihatu Ayla ...45
4.1.3 Honda Brio Satya ...46
4.1.4 Suzuki Karimun Wagon ...46
4.1.5 Datsun Go ...47
4.2 Summary Description of Pre-Test and Post Test ...47
4.3 The Validity and Reliability Test (Pretest)...48
4.3.1 Validity and Reliability Test (Pre-Test) of Safety ...48
4.3.2 Validity and Reliability Test (Pre-Test) of Design and Features ...49
4.3.3 Validity and Reliability Test (Pre-Test) of Durability ...50
4.3.4 Validity and Reliability Test (Pre-Test) of Environmental Concern ...50
4.3.5 Validity and Reliability Test (Pre-Test) of Product Price ...51
4.3.6 Validity and Reliability Test (Pre-Test) of Maintenance Cost ...52
4.3.7 Validity and Reliability Test (Pre-Test) of Brand Image ...53
4.3.8 Validity and Reliability Test (Pre-Test) of Purchase Intention ...53
4.3.9 Summary of Pre-Test ...54
4.4 Validity and reliability Test (Post-Test) of All Respondents ... 55
4.4.1 Validity Test (Post-test) on All Respondent ...55
4.4.2 Reliability Test (Post-Test) on All Respondents ...58
4.5 Respondent Profile ... 59
4.5.1 Gender ...59
4.5.2 Age ...60
4.5.3 Educational Background ...61
4.5.4 Occupation ...62
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Muhammad Shandy Aussie
4.5.5 Income ...63
4.5.6 Do you have LCGC’s? ...64
4.5.7 Brand of LCGC’s ...65
4.5.8 Brand Preferences of LCGC’s ...66
4.6 Structural Equation Modeling ...66
4.6.1 Path Diagram ...66
4.6.2 Measurement Model Test ...68
4.7 Path Diagram Interpretation ...69
4.8 Hypothesis Analysis ...70
4.8.1 Hypothesis # 1 ...71
4.8.2 Hypothesis # 2 ...73
4.8.3 Hypothesis # 3 ...74
4.8.4 Hypothesis # 4 ...75
CHAPTER 5 – CONCLUSION AND RECCOMENDATION ... 78
5.1 Conclusion ... 78
5.2 Recommendation ... 78
GLOSSARY ... 80
RFERENCES ... 81
APPENDICES ... 86
Appendix 1. Questionnaire ... 86
Appendix 2. Questionnaire (Continued) ... 87
Appendix 3. Questionnaire (Continued) ... 88
Appendix 4 - Pearson Table of critical values for Pearson correlation ... 89
Appendix 5 - Questionnaire Results ... 90
Appendix 6 - Questionnaire Results (continued) ... 91
CURRICULUM VITAE ... 92
