THE ROLE OF ETHNOCENTRISM IN THE BUYING PROCESS OF DOMESTIC PRODUCT
(Study on Leather Bag Made in Manding, Yogyakarta)
THESIS
Compiled to complete the requirements to achieve Master of Management
Written by
Dewantika Noor Hidayati Kusmono S411302010
MASTER OF MANAGEMENT POST GRADUATE
ABSTRACT
THE ROLE OF ETHNOCENTRISM IN THE BUYING PROCESS OF DOMESTIC PRODUCT
(Study on Leather Bag Made in Manding, Yogyakarta) Dewantika Noor Hidayati Kusmono
S411302010
The increase trend of globalization and advance technology in communication and transportation enable the consumers to access great variety of products and services from other countries. The competition between domestic and foreign corporations became interesting to be studied.
The objective of this researchexplains the relationship among of the observed variables. There are six relationship, namely, perceived quality and price fairness toward consumer attitudes toward domestic product, consumer attitudes toward intention to buy domestic product. Last, role of ethnocentrism as the moderation in this research.
The data is collected by survey and guided by questionnaire to 250 respondents. The survey is conducted in Yogyakarta by using a convenience sampling method. The constructed model were measured using five point Likert scale.
The findings show that consumer attitudes toward Leather Bag in Manding is influenced by price fairness and perceived quality.In the relationship between perceived quality, price fairness, consumer attitudes, and intention to buy, the ethnocentrism did not play a moderation role.
ABSTRAK
PERAN ETNOSENTRISME DALAM PROSES PEMBELIAN PRODUK DOMESTIK (Studi Pada Tas Kulit Buatan Manding, Yogyakarta)
Dewantika Noor Hidayati Kusmono S411302010
Peningkatan tren globalisasi dan kemajuan teknologi komunikasi dan transportasi memungkinkan konsumen untuk mengakses berbagai macam produk dan jasa dari negara lain. Persaingan antara perusahaan domestik dan asing menjadi menarik untuk dikaji. Tujuan dari penelitian ini untuk menjelaskan hubungan antara variabel yang diamati. Ada enam hubungan, yaitu, persepsi kualitas dan kewajaran harga terhadap sikap konsumen terhadap produk domestik, sikap konsumen terhadap niat untuk membeli produk dalam negeri. Terakhir, peran etnosentrisme sebagai moderasi dalam penelitian ini.
Data dikumpulkan oleh survei dan dipandu oleh kuesioner kepada 250 responden. Survei dilakukan di Yogyakarta dengan menggunakan metode convenience sampling. Model dibangun diukur dengan menggunakan lima titik skala Likert.
Temuan menunjukkan bahwa sikap konsumen terhadap Tas Kulit Manding di dipengaruhi oleh kewajaran harga dan persepsi kualitas. Dalam hubungan antara persepsi kualitas, keadilan harga, sikap konsumen, dan niat untuk membeli, etnosentrisme tidak memainkan peran moderasi.
MOTTO
“PMA. Positive Mental Attitudes”
Paarsbat
“The most beautiful Make up of a woman is passion”
Yves Saint-Laurent
“Simplicity is the keynote of all the true elegance”
Coco Channel
“A respectable appearance is sufficient to make people more interested in your soul”
I dedicated this thesis to my increadible team
PREFACE
Greates thanks to :
1. Prof. Dr. Hartono, MS as a chairmam of the UNS Magister Management Program 2. Dr. Budhi Haryanto, MM as a great and increadible advisor
3. All lecture of the UNS Magister Management Program
4. Drs Sumono, Msi and Dra Kustinah, you are all the reason for this hardwork 5. Muhammad Rahardian Kusmono and Wardani asa great supporter
6. Muhammad Adhitya Farkhaan Zamzami as a super partner
7. Kansas, SP, Big Family, and Solo Young Designers as the colour of my day 8. My new family in 40 class of Magister Management, you are rock guys
CONTENT LIST
CHAPTER II THEORITICAL BACKGROUND HYPHOTESIS 2.1. Study Position ... 10
2.2.2. The Perceived Quality ... 13
3.3. Operational Definition and Research Instrumental Mesurement 3.3.1. Perceived Quality ... 25
CHAPTER IV FINDINGS AND DISCUSSION 4.1. Descriptive Analysis Result ... 33
4.2. Research Instrument Analysis 4.2.1. Validity Test ... 35
4.2.2. Reliability Test ... 36
4.2.3. Normality Test ... 37
4.3. Structural Equation Modeling Analysis 4.3.1. The Sample Adequacy ... 39
4.3.2. Outliers ... 39
4.3.4. Modification ... 42
4.4. Moderation Analysis ... 43
4.5. Hypothesis Analysis and Discussion ... 48
4.5.1. Relationship Between Perceived Quality and Consumer Attitudes 49 4.5.2. Relationship Between Price Fairness and Consumer Attitudes 50 4.5.3. Relationship Between Intention to Buy and Consumer Attitudes 51 4.5.4. Relationship Between Perceived Quality, Price Fainrness, Toward Consumer Attitudes, and Consumer Attitudes toward Intention to Buy Moderating by Ethnocentrism ... 53
CHAPTER V CONCLUSION AND IMPLICATION 5.1. Conclusion ... 58
5.2. Implication 5.2.1. Theoritical Implication ... 59
5.2.2. Practical Implication ... 59
5.2.3. Future Study Implication ... 60
5.3. Limitation ... 61
LIST OF TABLES
Appendix 1 Respondent Distribution
Appendix 2 Convergent Validity Variable of Perceived Quality Appendix 3 Convergent Validity Variable of Price Fairness Appendix 4 Convergent Validity Variable of Ethnocentrism Appendix 5 Convergent Validity Variable of Consumer Attitudes Appendix 6 Convergent Validity Variable of Intention to Buy Appendix 7 Convergent Validity Test
Appendix 8 Convergent Reliability Result Appendix 9 Normality Test Result
Appendix 10 Outliers Test Result
Appendix 11 Evaluation of Goodness-of-Fit indices
Appendix 12 Evaluation of Goodness-of-Fit indices After Modified Appendix 13 Hyphotesis Testing Result
LIST OF DIAGRAM
1.1 Theoritical Framework ... 21
Appendix 9 Normality Test Result ... 89
Appendix 12 Evaluation of Goodness-of-Fit indices After Modified ... 94
