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Dean Date (3)BETHANYA CLAUDYA ABSTRACT THE IMPACT OF ONLINE DIGITAL REVIEWS ON CONSUMER BEHAVIOR: CASE STUDY OF X HEALTH BAR

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By

Bethanya Claudya 11403033

BACHELOR’S DEGREE In

BUSINESS ADMINISTRATION - HOTEL AND TOURISM MANAGEMENT CONCENTRATION

FACULTY OF BUSINESS AND COMMUNICATION

SWISS GERMAN UNIVERSITY The Prominence Tower

Jalan Jalur Sutera Barat No. 15, Alam Sutera Tangerang, Banten 15143 – Indonesia

Revision after Thesis Defense on 24th July 2018

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BETHANYA CLAUDYA

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.

Bethanya Claudya

Student Date

Approved by:

Esa Theodore Mbouw, BBA, MSc.

Thesis Advisor Date

Dr. Nila K. Hidayat SE., MM.

Dean Date

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BETHANYA CLAUDYA

ABSTRACT

THE IMPACT OF ONLINE DIGITAL REVIEWS ON CONSUMER BEHAVIOR:

CASE STUDY OF X HEALTH BAR.

By

Bethanya Claudya

Esa Theodore Mbouw, BBA, MSc., Advisor

SWISS GERMAN UNIVERSITY

The purpose of this research is to find out whether online digital review has a significant impact on consumer behavior with case study in X health bar. The independent variable for the research is online digital review. The indicators used for online digital review are consumer ratings and reviews, expert ratings and reviews, business ratings and reviews, community questions and answers, sponsored reviews, consumer conversations, and consumer testimonials. This research adopted quantitative research as the data analysis technique, with the type of study causal explanatory study. This research uses questionnaire in order to collect the data, the sample taken was people who have been to the X health bar in South Jakarta and South Tangerang area. The questionnaire is distributed to 88 respondents. Simple regression analysis was used in this research. The result was online digital reviews has positive impact on consumer behavior in X health bar, the impact is 0.215.

Keywords: Digital Review, Endorsement, Social Media, Buying Behavior, Buying Decision, Restaurant, Health Bar

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BETHANYA CLAUDYA

© Copyright 2018 by Bethanya Claudya

All rights reserved

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BETHANYA CLAUDYA

DEDICATION

I dedicate this works for beloved Indonesia and its growth.

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BETHANYA CLAUDYA

ACKNOWLEDGEMENTS

I thank Jesus Christ for His endless blessings on my thesis progress, I truly am grateful.

I would like to thank my beloved family, especially my parents, for their support on my thesis work. I truly appreciate their guidance.

Mr. Esa Mbouw who was patiently there to help me on my thesis work and gave me countless precious advices, I really am grateful to have him as my advisor. Without his guidance and advices this thesis will not be finished and completed.

Mrs. Munawaroh and Mr. Robert La Are for their supports and advices throughout my thesis progress, I truly am thankful for your guidance.

Mr. James Hunt who helped me on my thesis concerns, especially on the English language that is used in this thesis. Thank you for your time.

To all HTM 2014 friends and HTM Lectures, we went through a lot of things together. The past four years of college will not be this fun and exciting without all of you. I thank you for all the supports and memories.

Caroline Prasandya, Samuel Wibisono, Olivia Tamara, Tasya Liong, Ellen Ferranda, and Adiel Kurnia, thank you for every laughter and memories you brought during college years and for your endless support on my thesis progress. I really am thankful to know all of you.

Novenia Raditta Hutagalung and Mira Anggraeni. I truly am grateful to have both of you as my support machine. Thank you.

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BETHANYA CLAUDYA

TABLE OF CONTENTS

STATEMENT BY THE AUTHOR ... 2

ABSTRACT………...3

DEDICATION..……….5

ACKNOWLEDGEMENTS ... 6

LIST OF FIGURES ... 10

LIST OF TABLES ... 11

CHAPTER 1 INTRODUCTION ... 12

1.1 Background ... 12

1.2 Research Problems ... 14

1.3 Research Objective ... 15

1.4 Research Question ... 15

1.5 Scope and Limitation ... 16

1.6 Significance of Study ... 16

1.7 Hypothesis ... 16

CHAPTER 2 LITERATURE REVIEW ... 17

2.1 Framework Thinking ... 17

2.2 Marketing ... 18

2.2.1 4Ps ... 18

2.2.2 E-Marketing ... 19

2.2.3 Owned, Paid, and Earned Media ... 20

2.2.4 User Engagement Levels ... 21

2.2.5 Techniques for Engaging Users ... 22

2.2.6 Ratings and Reviews ... 23

2.2.7 Benefits for the company that engage ... 24

2.3 Consumer Behavior ... 25

2.3.1 Stages of Consumer Behavior ... 26

2.3.2 Consumer Buying Decision ... 27

2.4 Previous Study... 29

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BETHANYA CLAUDYA

CHAPTER 3 RESEARCH METHODOLOGY ... 34

3.1. Type of Study ... 34

3.2 Unit of Analysis/Unit Observation ... 34

3.3 Sampling Design ... 34

3.3.1 Population and Sample Target ... 34

3.3.2 Sampling Method ... 35

3.3.3 Sampling Size ... 35

3.4 Location and Time Frame of Study ... 36

3.5 Data Sources and Collection ... 36

3.5.1 Type of Data ... 36

3.5.2 Data Collection Method... 37

3.5.3 Questionnaire Structure ... 37

3.6 Research Model ... 38

3.7 Operational Variable ... 38

3.8 Data Processing Procedures ... 48

3.8.1 Data Preparation ... 48

3.8.2 Data Screening ... 48

3.8.3 Validity Test ... 48

3.8.4 Reliability Test ... 48

3.9 Data Analysis Technique ... 49

3.9.1 Classical Assumption Test... 49

3.9.2 Simple Regression ... 49

CHAPTER 4 RESULT AND DISCUSSIONS ... 51

4.1 Respondent Profile ... 51

4.1.1 Gender ... 51

4.1.2 Age... 51

4.1.3 Occupation ... 52

4.1.4 Last Education ... 52

4.1.5 Monthly Income ... 53

4.2 Result on Validity and Reliability test ... 53

4.2.1 Pre test result ... 53

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BETHANYA CLAUDYA

4.3 Post test ... 57

4.3.1 Normality Test ... 57

4.3.2 Heteroscedasticity Test ... 58

4.3.3 Regression ... 58

4.4 Discussion ... 60

CHAPTER 5 CONCLUSIONS AND RECOMMENDATIONS ... 63

5.1 Conclusions ... 63

5.2 Recommendation ... 63

5.2.1 Managerial Implications ... 63

5.2.2 Future Research ... 64

GLOSSARY……….65

REFERENCES ……….66

APPENDIX A Questionnaire ... 70

APPENDIX B Pre Test Data ... 80

APPENDIX C Post Test Data ... 88

CURRICULUM VITAE ... 100

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