OLX.CO.ID
By
Nanda Dwinanti Ramdhani 13112021
BACHELOR’S DEGREE in
BUSINESS ADMINISTRATION
BUSINESS ADMINISTRATION AND HUMANITIES
SWISS GERMAN UNIVERSITY EduTown BSD City
Tangerang 15339 Indonesia
August 2016
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.
Nanda Dwinanti Ramdhani
____________________________________________
Student Date
Approved by:
Moch. Riyadh Rizky Adam S.T., M.S.M
____________________________________________
Thesis Advisor Date
Dr. rer. nat. Linus Pasasa
____________________________________________
Thesis Co-Advisor Date
Eric Jos Nasution, MBA, MA, Ph.D
____________________________________________
Dean Date
ABSTRACT
The Impact of Brand Equity Towards The Brand Preference and Purchase Intention: A Case Study of OLX.co.id
By
Nanda Dwinanti Ramdhani
Moch Riyadh Rizky Adam S.T., M.S.M, Advisor Dr.rer.nat.Linus Pasasa, Co-Advisor
SWISS GERMAN UNIVERSITY
The competition between online industries are getting tougher. Brand equity is an important aspect in a competitive market, which can lead to their brand preference and purchase intention. Tokobagus.com for instance has built their reputation by achieving the “Indonesia Brand Champion Award 2012” in the category “Most Popular Brand Online Shop in the Commercial Segment”. Shockingly in 2014 Tokobagus.com has changed their identity become OLX.co.id, which has been acquired by OLX Inc. a multinational company. The result of the change is not what the company was expecting. This study analyzed regarding trust, perceived quality, and brand loyalty, which result brand equity that the company faces a problem, which relates to their brand preference and purchase intention. Using SPSS version 23 and Structural Equation Method (SEM) in AMOS for data analysis from quantitative research of 120 respondents using non-probability judgment. Result shows that all hypothesis are accepted, and the brand equity which are affected by trust, perceived quality and brand loyalty have a significant affect towards the customers brand preference and purchase intention.
Keywords: Brand equity, Brand loyalty, Brand preference, OLX.co.id, Perceived quality, Purchase intention, Tokobagus.com, Trust
© Copyright 2016 By Nanda Dwinanti Ramdhani
All rights reserved
DEDICATION
I dedicate this work for my beloved mom and dad for their greatest support. Thank you for always supporting and believing in me.
ACKNOWLEDGEMENTS
First of all, i would like to express my sincere gratitude to Allah SWT, for giving me countless blessing, faith and strength to complete this thesis.
I would also like to show my biggest appreciation to Moch Riyadh Rizky Adam S.T., M.S.M my advisor for all the encouragement, critics and guidance during this developing this thesis. To Dr. rer. nat. Linus Pasasa as my co-advisor, i would like to thank you for your time, attention and support up to completing this thesis. For Mike Roberts and Jamus Hunt thank you for the constructive advice.
My sincere thank you to both of my parents, Deny Ramdhani and Amy Ramdhany for their unconditional love, continuous pray, support, understandment not only for accomplising this thesis but they have been my main spirit in life. I would also like to thank my sister Mesa Deminovianti Ramdhani and my brother in law Riko Parlindungan that has given me a huge help and support.
To Reyusar Effendy, thank you for being there for me and for the support, understandment also the continuous pray.
I would also like to thank my great loyal friends, Intan Cahyaning, Nadia Ghina Tamara, Athluna Canthika, Avi Amerta, Fara Shabrina Muntu, Kania Andinisari,Wulan Ayu, Miranti Andhika and Carina Nugroho that has been a support system and a positive influence to my life.
Last but not least, thank you to International Marketing classmates that has been through the same pain and joy, you all make me happy and also Swiss German University fellow students who have also supported me, thank you for all the support.
TABLE OF CONTENTS
STATEMENT BY THE AUTHOR ... 2
ABSTRACT ... 3
COPYRIGHT......4
DEDICATION ... 5
ACKNOWLEDGEMENTS ... 6
TABLE OF CONTENTS ... 7
CHAPTER 1 – INTRODUCTION ... 15
1.1 Background ... 15
1.2 Research Problems ... 20
1.3 Research Questions ... 23
1.4 Research Objective ... 23
1.5 Scope and Limitations ... 23
1.6 Significance Study ... 24
CHAPTER 2 - LITERATURE REVIEW ... 25
2.1 Framework of Thinking ... 25
2.2 Purchase Intention ... 25
2.3 Brand Preference ... 27
2.4 Brand Equity ... 28
2.4.1 Firm-Based Brand Equity ... 34
2.4.2 Consumer-Based Brand Equity ... 34
2.5 Brand Loyalty ... 41
2.6 Trust ... 44
2.7 Perceived Quality ... 47
2.8 Previous Research ... 49
2.9 Study Differences ... 52
2.10 Research Model ... 57
2.11 Hypothesis Development ... 58
3.2 Unit of Analysis ... 65
3.3 Population & Sample Planning ... 66
3.3.1 Population Target ... 67
3.3.2 Sampling Method ... 68
3.3.3 Sampling Size ... 68
3.4 Time Frame of Study ... 69
3.5 Data Sources & Collection ... 70
3.5.1 Type of Data ... 73
3.5.2 Questionnaire Development ... 73
3.5.3 Data Collection Method ... 74
3.6 Variable Operationalization ... 76
3.7 Data Analysis Technique ... 80
3.7.1 Reliable and Validity Test ... 80
3.7.3 Data Reliability and Validity of Respondent ... 82
3.7.4 Coefficient Correlation ... 89
3.7.5 SEM (Structural Equation Modeling) ... 90
3.7.6 Path Diagram ... 91
CHAPTER 4 – RESULT AND DISCUSSION ... 93
4.1 Brief of Company Background ... 93
4.2 Descriptive Analysis of Respondent ... 96
4.2.1 Gender ... 96
4.2.2 Age ... 96
4.2.3 Occupation ... 97
4.2.4 Average Monthly Income ... 97
4.3 Impact of Demography on Purchase Intention: Cross-Tab Analysis ... 98
4.3.1 Relationship between Gender and Purchase Intention ... 99
4.3.2 Relationship between Age and Purchase Intention ... 101
4.3.3 Relationship between Occupation and Purchase Intention ... 104
4.3.4 Relationship between Income and Purchase Intention ... 107
4.3 Structural Equation Model (SEM) ... 109
4.3.1 Path Diagram ... 109
4.3.2 Analysis Model Structural ... 110
CHAPTER 5 - CONCLUSION AND RECOMMENDATION ... 123
5.1 Conclusion ... 123
5.1.1 Descriptive Analysis Conclusion ... 123
5.1.2 Inductive Analysis Conclusion ... 124
5.2 Recommendation ... 126
5.2.1 Managerial Implications ... 126
5.2.2 Further Research ... 144
GLOSSARY ... 145
REFERENCES ... 150
APPENDICES ... 173
CURRICULLUM VITAE ... 203
