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THE ANALYSIS OF PROMOTION MIX ON JAMU BY STRUCTURAL

EQUATION MODELING (SEM) METHOD AND CLUSTER ANALYSIS

(Case Studies In Small Industries of Traditional Medicine in East Java)

ABSTRACT

Name : Arni Rahmawati

NRP : 9109201501

Supervisor : DR. Indung Sudarso, ST, MT

The purpose of this study is analyze the level of influence on way to promote and buying interest toward buying decision on Small Industries of Traditional Medicine (IKOT), furthermore to analyze consumer segmentation and determining strategies for promoting of jamu IKOT exactly. The object of this study is limited only in advertising, sales promotion, public relations, personal selling and direct marketing as variable latent independent. Buying intention as midst variable, and purchasing decision as banded variable. This research has conducted in Malang, Surabaya and Jombang with the sampling has been taken as many 210 respondents from the required minimum sample as many 196 respondents with using analytical methods Structural Equation Modeling (SEM) and Cluster.

The results of SEM analysis shows the promotion mix which are influence of jamu IKOT buying interest are sales promotion, personal selling and advertising toward each buying interest as many 1 unit, whereas the influence of public relations toward buying interest is -0.666 units. The great influence of buying interest toward buying decision is 0.239 units. Based on the results of cluster analysis, there are four (4) segments jamu IKOT buying decision; First segment, majority are agree on jamu IKOT promotion mix indicators, second segment, majority are agree and disagree on jamu IKOT promotion mix indicators, third segment, majority are middle of agree and agree with jamu IKOT promotion mix indicators, and the last segment which is many answers in addressing jamu IKOT promotion mix indicators.

The determination of segmentation strategy on the third segment with considering due to the large number of consumers (48.48%), and have a positive perception toward IKOT herbs.

Key words: promotion mix, intention to buy, purchasing decisions, Structural Equation Modeling (SEM), Cluster analysis

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