The committee of examiners declares that the thesis entitled “DOMINANT PRODUCT FACTORS INFLUENCING UNIVERSITY STUDENT PRESIDENTS ON THE PURCHASE DECISION OF A MOBILE INTERNET PROVIDER: A CASE STUDY OF PT. This thesis titled “DOMINANT PRODUCT FACTORS INFLUENCING UNIVERSITY STUDENT PRESIDENTS ON MOBILE INTERNET SERVICE PURCHASE DECISION PROVIDES: A CASE STUDY OF PT. I hereby declare that this thesis entitled “DOMINANT PRODUCT FACTORS INFLUENCING UNIVERSITY STUDENT PRESIDENTS IN THE PURCHASE DECISION OF A MOBILE INTERNET PROVIDER: A CASE STUDY OF PT.
The purpose of this research is to identify the dominant factors of product influence. President University students choose Smartfren as their internet provider. As of the survey, the needs of an excellent internet service provider have become the most dominant factor why customers choose Smartfren as their internet service provider.
LIST OF TABLES
INTRODUCTION
Background of Study
It is very important to identify the dominant factor why customers choose Smartfren as their mobile ISP in order to achieve the position of a key player in the ISP sector.
Company Profile
Problem Identification
Population of Internet Users in Indonesia 2010 vs 2011
- Statement of the Problem
- Research Objectives
- Significance of the Research
- Theoretical Significance
- Practical Significance
- Theoretical Framework
- Limitations of the Study
To gain recognition as the key player in the ISP industry and also to identify the number of subscribers that has decreased; The researcher designed this dissertation to analyze the dominant product factor that influences the students of President University who choose Smartfren as their ISP. What are the dominant product factors that influence President University students choosing Smartfren as their mobile internet provider. Identify the dominant product factors that influence President University students choosing Smartfren as their mobile internet provider.
The research is carried out with a view to implementing the theory and knowledge that the researcher has learned in class. This research was conducted to identify what are the dominant factors of the product that influence President University students' choice of Smartfren as a mobile internet service provider.
LITERATURE REVIEW
Definition of Product
Three Levels of Product
- Core Customer Value
- Actual Product
- Augmented Product
Based on Kotler's theory, the actual product can be divided into five, which are features, design, packaging, quality level and brand name. The brand name becomes the basis on which a whole story can be built about the special qualities of a product. Performance: Product performance can be described as the response of a product to external actions in the working environment.
Conformance can be defined as the degree to which a product's design and performance meet predetermined standards. Difficulties related to a relationship between a supplier and its customer can be reduced by offering service that complements the product (Wellemin, 1984).
The Five Stages Buying Decision Process
- Need Recognition
- Information Search
- Evaluation of Alternatives
- Purchase Decision
- Post Purchase Behavior
The next step in the buying process is information search, where the consumer uses various channels to gather information about available products that can meet the needs described above. In the milder state, heightened awareness, the consumer simply becomes more familiar with the various products that may be suitable for them. In this mode, the consumer is only aware of ads and conversations about the topic.
In the next state, active information search, the consumer actively engages in these conversations and searches for information about different brands, models, etc. Of all the possible products and brands that might satisfy a customer's needs, only a handful will come to the consumer's attention. As more information is gathered and evaluated about the products of the counter-performance set, the final purchase decision will be made from the choice set.
They define the evoked set as a set of products about which the consumer has a positive opinion and from which they are likely to make their purchase. The consumer may be aware of such products but not have formed an opinion, possibly due to lack of knowledge. The final set is called the inept set, which includes the products about which the consumer has formed a negative opinion, and therefore these will not be purchased.
Lee and Laboro (2004) demonstrated that in their experiments, a brand becomes more conceptually fluid if the consumer has been exposed to related products just before they come into contact with the target product. After the evaluation phase, the consumer has ranked the items in the choice set in some order, but it is not always that number one (if a number one is assigned) will be chosen. Even if the previous two ingredients fail, there must be something inside the consumer willing to make the change and buy the particular item their impulses suggest.
RESEARCH METHODOLOGY
- Research Design
- Research Framework
- Research Time and Place
- Research Instrument
- Data Collection a. Survey
- Statistical Packages
- Sampling Design
- Size of the Population
- Sample Technique
- Characteristic of Respondent
- Research Variable
- Validity and Reliability
- Reliability
- Validity
- Method of Processing Data
- Limitation
The researcher must find the main problem and what the purpose of the research is based on the background of the problem. After defining the problem statement, the researcher must support the research through many types of literature that can support the researcher to solve the problem, construct questionnaire, analyze the data and draw conclusions. The research is designed with quantitative method, which means the researcher chooses questionnaire as an option to collect data.
The researcher must conduct validity and reliability tests before collecting primary data using a questionnaire. If the questionnaire test is valid and reliable, the researcher can obtain primary data by distributing the questionnaire. After the data calculation, the researcher analyzes and interprets the data to solve the problem and draw conclusions.
From the study, the researcher found out that the number of Smartfren users in President University Student Housing is 187 students. The non-probability sampling technique focuses on sampling where the units examined are based on the researcher's judgment. Based on the theory of the three product levels (Kotler and Armstrong, 2010), the researcher chooses six variables that can represent the characteristic of the product.
The researcher came to the conclusion that the two test instruments will meet the requirements to obtain the result valid and reliable research. Furthermore, in order to obtain consistent data and be trusted, the researcher used a measuring instrument in the same symptoms, so the researcher used a reliability test. So, based on these results it can be seen that all the variables have Cronbach's Alpha greater than 0.6.
INTERPRETATION OF RESULTS
Respondent Characteristic
Based on the above table, the researcher will analyze the dominant factor according to gender.
Data Collecting
P14 Smartfren can provide the service without problems or disturbances P15 Smartfren can provide high-speed internet service. P18 I don't need to spend a lot of time on customer service if I have problems with Smartfren. P20 Smartfren uses many kinds of channels such as SMS, e-mail, internet, etc. to keep me updated with Smartfren news.
P23 Smartfren clearly states the warranty points P24 I can easily claim warranty in all Smartfren stores P25 I feel protected by the product warranty. P15 Smartfren can provide 0.742 high speed internet service. P16 I never regret using Smartfren as my internet. Smartfren uses many types of channels such as SMS, email, internet, etc. to keep me informed of Smartfren news.
P23 Smartfren mentions warranty points clearly 0.692 P24 I can easily search for warranty throughout the Smartfren store 0.823 P25 I feel protected by the product warranty 0.787 P26 I can understand every warranty point easily 0.757 Source: SPSS 16 and primary data. That is, all statements can be entered into the next step which is factor analysis. Based on the final statistics, three components can be identified which are the community, the eigenvalue and the cumulative percentage of extracted factors.
Eigenvalue is used to determine how many latent variables will be generated, meaning if the eigenvalue is greater than 1, it is considered significant. The community of variables shows the variance ratio of the variable, which can be explained in generated factors. Based on the calculation, there are six factors whose eigenvalue is more than 1 percent variance, which shows us that component number 1 is the highest percent variance, with a value of 31.969%.
Interpretation of the Result
- Data Interpretation
- Latent Factors
Based on the above value, the researcher can conclude that the need for an excellent internet service provider is really essential for the customers in choosing the internet service provider. Most customers think that Smartfren is the right choice of internet service provider (P1) and Smartfren can provide many benefits compared to other competitors (P5). The second factor has 12.165 percent variance, which means the second dominant factors why customers choose Smartfren as an internet service provider.
From the above data calculation, product quality is the second dominant factor why customers choose Smartfren as their internet service provider. The reason why customers choose Smartfren is because customers feel that Smartfren can perform well to meet customer expectations in high-speed Internet services. The third factor has a variance of 7.983 percent, which means the third dominant factors why customers choose Smartfren as their internet service provider.
From the value of P22 and P20, customers choose Smartfren as their internet service provider because Smartfren always improves services and connects with their customers through multiple media channels. The fourth factor has 6.062 percent variance, which means the four dominant factors why customers choose Smartfren as an Internet service provider. The fifth factor has 4.710 percent variance, which means the five dominant factors why customers choose Smartfren as an Internet service provider.
From the data calculation above, the brand name becomes the fifth factor why customers choose Smartfren as an internet service provider. P11 mentioned that Smartfren as a brand has been successful in representing the product's attributes with a factor value of 0.858. The sixth factor has 4.220 percent variance, which means the sixth dominant factor why customers choose Smartfren as an internet service provider.
CONCLUSION AND RECOMMENDATION
Conclusion
Recommendation
- books
- Questionnaire
- Respondent’s Data 1. Age
- QUESTIONNAIRE SCALE
- Cronbach’s Alpha
- Validity Testing
- Anti Image Correlation
- Ordinal Data
- Interval Data
1984. The Handbook of Professional Service Management: Caring for the customer before, during and after the sale", Sweden: Student litterateur, Lund. I am doing my research with the title "The Dominant Factor of Product Influence President University Student in Buying Decision of Internet Service Provider (A Case Study of PT Smartfren Tbk) Against this background, I greatly appreciate your contribution and your participation as a respondent in completing this questionnaire.
I keep the information of the respondents confidential and this questionnaire is designed to support the completeness of the thesis. P4 Smartfren offers excellent internet service and is very useful for my daily activities. The P5 Smartfren offers many advantages over others.