ANALYSIS OF ADVERTISING AND SALES PROMOTION TOWARDS INDIVIDUAL PURCHASING INTENTION, CASE STUDY: XCAPE.ID

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By

Stephany Florentina Goenawan 13312028

BACHELOR’S DEGREE in

BUSINESS ADMINISTRATION - HOTEL AND TOURISM MANAGEMENT CONCENTRATION

FACULTY OF BUSINESS ADMINISTRATION & HUMANITIES

SWISS GERMAN UNIVERSITY EduTown BSD City

Tangerang 15339 Indonesia AUGUST 2016

Revision after the Thesis Defense on 19^th of July 2016

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Stephany Florentina Goenawan 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.

Stephany Florentina Goenawan

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Student Date

Approved by:

Vishnuvardhana S. Soeprapto, BA., MA.

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Thesis Advisor Date

Eric J. Nasution, MBA., MA., Ph.D.

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Dean Date

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Stephany Florentina Goenawan ABSTRACT

Analysis of Advertising and Sales Promotion towards Individual Purchasing Intention, Case Study: Xcape.id

By

Vishnuvardhana S. Soeprapto, BA., M.A., Advisor

SWISS GERMAN UNIVERISTY

The establishment of the new entertainment attractions, real escape room game, is growing in Indonesia. Due to lack of recognition, promotion is used to increase the customers’

intention to play. This research is aiming to determine the effectiveness of advertising and sales promotion towards customer individual purchase intention. The research focused on Xcape.id located at PIK as the main case study. The data was collected through a questionnaire which was distributed on the site. There were 96 responds selected to be used as the data. The validity and reliability data was calculated with SPSS program using Pearson table of correlation and Cronbach’s Alpha. AMOS was utilized to calculate the relationship between variables. It was found that advertising has a very weak correlation to individual purchasing intention. Whereas, sales promotion has a moderate relationship with individual purchasing intention.

Keywords: Advertising, Sales Promotion. Purchase Intention, Promotional Mix, Customer Buying Behavior.

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Stephany Florentina Goenawan DEDICATION

I dedicate this thesis to my parents who had faith and encouraged me from the start until I finished my research. I would like to dedicate my research to Vishnuvardhana S.

Soeprapto, BA., MA., who was guiding me throughout my journey and giving endless supports.

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Stephany Florentina Goenawan ACKNOWLEDGEMENTS

I would like to express my thanks to following people who help me along the journey:

First, I would like to thank God who gave me His blessing and guides me through friends and families.

To my advisor, Vishnuvardhana S. Soeprapto, BA., M.A., I am deeply grateful for the guidance and patience to help me search for thesis title until I finished the research. I learned a lot of new experiences throughout the process.

I would like to thank my closest friends from Hotel and Tourism Management, Silvia Chailina, Gladys Sitompul, Elva Yohana. Jane Stacia, Ristia Kencana for the absurd chats along the night, endless laugh, working together before the deadlines and fun we had for the past 4 years. For Stella Wang and Fenina Putri, thank you for being there when I needed the most, especially to dine out, watched horror movies, and all the hot gossips. As Muhammad Ali said, “Friendship is the hardest thing in the world to explain. It’s not something you learn in school. But if you haven’t learned the meaning of friendship, you really haven’t learned anything.” I love you guys ♥.

To my best friend Julio Castor Achmadi and Audea Laurentia who are encouraging me to finish my thesis and promised to bring one big blue bouquet if I passed all this mess.

William Shakespeare once said, “A friend is one that knows you as you are, understands where you have been, accepts what you have become, and still, gently allows you to grow. ” Thank you guys ♥♥.

Last but not least, I would like to thank my parents and sisters for supporting me mentally throughout writing this thesis and my life in general

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Stephany Florentina Goenawan TABLE OF CONTENTS

STATEMENT BY THE AUTHOR ... 2

ABSTRACT ... 3

DEDICATION ... 5

ACKNOWLEDGEMENTS ... 6

TABLE OF CONTENTS ... 7

LIST OF TABLE ... 12

CHAPTER 1 - INTRODUCTION ... 13

1.1 Background ... 13

1.2 Research Problem ... 17

1.3 Research Objective ... 17

1.4 Research Question ... 18

1.5 Significant of Study ... 18

1.6 Scope and Limitation ... 18

1.7 Thesis Structure ... 18

CHAPTER 2 - Literature Review ... 20

2.1 Framework of Thinking ... 20

2.2 Tourism ... 21

2.2.1 Attraction ... 21

2.3 Marketing ... 23

2.3.1 Promotion ... 24

2.3.1.1 Advertising ... 25

2.3.1.2 Sales promotion ... 30

2.4 Consumer Behavior ... 33

2.5 Buying Decision ... 35

2.5.1 Purchasing Intention ... 37

2.5.1.1Individual Preference ... 38

2.5.1.2Reference ... 39

2.6 Relation of Advertising and Purchasing Intention ... 40

2.7 Relation of Sales Promotion and Purchasing Intention ... 40

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2.8 Previous Study ... 42

2.9 Difference with the Previous Study ... 52

2.10 Research Model ... 52

2.11 Hypothesis ... 53

CHAPTER 3 - Research Methodology ... 54

3.1 Research Process ... 54

3.2 Type of Research ... 55

3.3 Type of Data ... 55

3.4 Research Instrument ... 55

3.5 Operational Indicator of Variable ... 55

3.6 Population and Sample ... 58

3.6.1 Population ... 58

3.6.2 Sample ... 58

3.6.3 Sampling Method ... 58

3.7 Data Testing ... 61

3.7.1 Pre-Testing ... 61

3.7.2 Post-Testing ... 62

3.8 Validity and Reliability ... 62

3.8.1 Validity ... 62

3.8.2 Reliability ... 64

3.9 Data Analysis ... 65

CHAPTER 4 - Result and Discussion ... 67

4.1 Company Profile ... 67

4.2 Respondent Profile ... 72

4.2.1 Gender ... 72

4.2.2 Age ... 73

4.2.3 Residence ... 74

4.2.4 Occupation ... 75

4.2.5 Spending ... 76

4.3 Validity and Reliability ... 76

4.3.1 Validity (Pre-testing) ... 76

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4.3.1.1Advertising ... 77

4.3.1.2 Sales Promotion ... 78

4.3.1.3 Purchase Intention ... 79

4.3.2 Reliability (Pre-testing) ... 79

4.3.3 Validity (Post-testing) ... 81

4.3.3.1Advertising ... 81

4.3.4 Reliability (Post-testing) ... 83

4.3.4.1 Advertising ... 83

4.4 Data Analysis ... 85

4.4.1 Data Interpretation ... 86

4.4.2 Goodness of Fit (GOF) ... 92

4.4.2.1CMIN ... 92

4.4.2.2RMR, GFI ... 92

4.4.3 Hypothesis Analysis ... 95

4.4.3.1 Hypothesis 1 ... 95

4.4.3.2 Hypothesis 2 ... 96

CHAPTER 5 - Conclusion and Recommendation ... 98

5.1Conclusion ... 98

5.2Recommendation ... 99

GLOSSARY ... 101

ABBREVIATIONS ... 102

REFERENCES ... 103

APPENDIX A: PICTURES OF XCAPE.ID ... 109

APPENDIX B: Raw Data Excel Pre-test ... 111

APPENDIX C: Raw Data Excel Post-test ... 113

APPENDIX B: Questionnaire in Bahasa ... 119

APPENDIX E: Questionnaire in English ... 124

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Stephany Florentina Goenawan CURRICULUM VITAE ... 130