This study examined the partial influence of luxury brand image, perceived price, and perceived product quality on purchase intention among young generation in Indonesia

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The Influence of Luxury Brand Image, Perceived Price,

and Perceived Product Quality on Purchase Intention (Study on iPhone Brand)

THESIS

Submitted to the Faculty of Economics and Business for Achieving the Bachelor of Economics Degree

By:

Nikolaus Kevin Kristovano Aryawijaya 212019511

INTERNATIONAL CLASS OF MANAGEMENT AND ACCONTING PROGRAM FACULTY OF ECONOMIC AND BUSINESS

SATYA WACANA CHRISTIAN UNIVERSITY

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STATEMENT OF THESIS AUTHENTICITY

The undersigned:

No : Nikolaus Kevin Kristovano Aryawijaya

NIM : 212019511

Study program : S- 1 Management – ICMAP

Faculty of Economics and Business Satya Wacana Christian University It is hereby declared that the Final Project:

Title : The Influence of Luxury Brand Image, Perceived Price,

and Perceived Product Quality on Purchase Intention (Study on iPhone Brand)

Advisor : Annie Susanto S.Pd, M.M.

Test Date : 24 March 2023

In this writing sheet there are no ideas, ideas, and other people's conclusions that I have drawn by copying or imitating in the form of sentences or symbols as if they were my own writing without any acknowledgment of the original author's source.

Ungaran, 1 Februari 2023

Nikolaus Kevin Kristovano Aryawijaya

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APPROVAL PAGE

Tittle : The Influence of Luxury Brand Image, Perceived Price, and Perceived Product Quality on Purchase Intention (Study on iPhone Brand)

Student Name : Nikolaus Kevin Kristovano Aryawijaya Student ID : 21201911

Major : Management – ICMAP

Approved by

Annie Susanto, S.Pd., M.M.

Supervisor

Approval by head of study Program

Annie Susanto, S.Pd., M.M.

Head of International Class of Management and Accounting Program

Passed on:

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ABSTRACT

iPhone is well-known as a high-end and high-price product, which leads to having a much higher price compared to the other brands of smartphones. iPhone’s worldwide sales have been in first or second place for more than 4 years, from January 2018 to June 2022. However, iPhone has been on rank 5 in the top-five list of best-selling smartphones in Indonesia. On one side, there has been some common perception among Indonesian youngsters that iPhone is a cool & exclusive luxurious brand having good performance and durability. On the other side, there is the fact that the iPhone price is also very high. This study examined the partial influence of luxury brand image, perceived price, and perceived product quality on purchase intention among young generation in Indonesia. Primary data was gathered using Google form online survey. Generations Y and Z were the population and the samples were chosen using the non-probability sampling technique. The respondents consisted of 201 young people from several different areas in Indonesia, who were non-users of iPhones. The responses were then analyzed using Statistical Package for Social Sciences (SPSS). The results showed that only perceived price has a significant influence on purchase intention, while both luxury brand image and perceived quality do not have a significant influence on purchase intention.

Keywords: luxury brand image-perceived price-perceived quality-purchase intention Topic: Marketing

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ABSTRAK

iPhone adalah produk yang sudah cukup terkenal dan juga memiliki harga produk yang tinggi, yang membuatnya menjadi memiliki harga yang lebih tinggi di bandingankan smartphone lainya.

Penjualan iPhones secara dunia berada di peringkat pertama atau kedua selama kurang lebih 4 tahun ini, mulai dari Januari 2018 hingga Juni 2022. Bagaimanapun, iPhone sudah menjadi salah satu dari 5 peringkat dari penjualan terbaik jenis smartphone di Indonesia. Di satu sisi, ada perseps di kalangan orang muda di Indonesia yang menyatakan iPhone adalah barang yang baik, memiliki merek yang ekslusif, dan memiliki daya tahan serta performa yang bagus. Di sisi yang lain, secara fakta iPhone memiliki harga yang sangat tinggi. Studi ini menguji pengaruh secaraparsial dari citra brand mewah, persepsi harga, dan persepsi kualitas pada niat beli antara para muda-mudi di Indonesia. Data primer dikumpulkan menggunakan Google for secara survey online. Generasi Y dan Z adalah poplasi dan sampel yang dipilih mengguakan non-probability teknik sampling.

Respndent berjumlah sebanyak 201 muda-mudi dari beberapa daerah yang berbeda di Indonesia, dan tidak pengguna iPhone. Hasil kemudian di uji menggunakan Statitical Package for Social Sciences (SPSS). Hasil menunjukan bahwa hanya perseps harga yang memiliki mempengaruhi signifikan di dalam niat beli.

Kata Kunci: citra merek mewah-persepsi harga-persepsi kualitas-niat beli Topik: Pemasaran

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ACKNOWLEDGEMENT

God the almighty father, praise and gratitude I convey for your blessings and gifts during the process of working on this writing. He is also very grateful for the blessings you give through the people around him. All of this would not have gone well without Your intervention in every second of the process.

The author is also very grateful to Satya Wacana Christian University for the opportunity to be able to pursue learning and self-development as a writer. On the one hand the author is also very grateful to the supervisor of the writer, Mrs. Annie Susanto., S.Pd., M.M., with the ability and knowledge given to the author, all of this can work well. She provides tons of advice and is also a support in every good and bad situation. He is a mentor who really understands writers, and always tries to provide time and every writer needs time for consultation. Ma'am Annie is the best supervisor and also one of the lecturers who really helps the writer.

The author is also deeply grateful and gives all respect to his parents. The author would not have achieved this on his own, without financial support from both parents. Thank you for all the prayers, care and support given to the author. This achievement is one form of the author's dedication to his parents as a thank you, for the effort given from the beginning of education to the end of studying at Satya Wacana Christian University.

The author also thanks my girlfriend, because with his patience she has accompanied me, provided support, and most importantly always been there in every situation. Thanks to Allah for sending blessings through my girlfrend. I am also always grateful every second because with her, I get peace.

Lastly and not least, thanks to myself as a writer. Thank you myself for trusting me, thank you for working hard, thank you for not asking for a day off, thank you for never giving up, thank you for being an enthusiastic person, and lastly, thank you for being able to finish writing this.

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PREFACE

Purchase intention in buying an item is something that creates an urge to buy an item.

Someone's buying interest in an item, especially luxury goods, is of concern in this paper, such as the iPhone. There are so many things that influence someone to be interested in buying an item, in this study looking at the aspects of luxury brand image, perceived price, and also perceived quality of this item. And finally, one of the several variables above can shape and influence someone's buying interest, this is what is the curiosity of writing with the aim of finding out from several of the variables above. To have the answer for, which variables make people interested in buying luxury goods such as iPhones.

The research gap section is contained in the introduction, theoretical review, research design, and research limitations sections, which are results that can be used in further research or studies. The author hopes that this research study can be useful for iPhone marketing in determining marketing strategies, especially for youngsters in Indonesia (Generation Z &

Generation Y).

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TABLE OF CONTENTS

STATEMENT OF THESIS AUTHENTICITY ... i

APPROVAL PAGE ... ii

ABSTRACT ... iii

ABSTRAK ... iv

ACKNOWLEDGEMENT ... v

PREFACE ... vi

TABLE OF CONTENTS ... vii

LIST OF TABLES ... x

LIST OF FIGURES ... xi

INTRODUCTION ... 1

Research Background ... 1

Research Question ... 4

Research Objective ... 5

LITERATURE REVIEW ... 6

Luxury Brand Image ... 6

Perceived Price ... 6

Perceived Quality ... 7

Purchase Intention ... 8

HYPOTHESIS FORMULATION ... 9

The Relationship Between Luxury Brand Image and Purchase Intention ... 9

The Relationship Between Perceived Price and Purchase Intention ... 9

The Relationship Between Perceived Product Quality and Purchase Intention ... 9

Conceptual Framework ... 11

RESEARCH METHOD ... 12

Type of Research ... 12

Location, Population, and sample of the Research ... 12

Data Collection Method ... 13

Operational Variable ... 14

Data Analysis Method ... 17

Validity Test ... 17

Reliability Test ... 17

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Classical Assumption ... 17

1. Normality test ... 17

Linearity Test ... 18

Heteroscedasticity Test ... 18

Multicollinearity test ... 18

Hypothesis Test Technique ... 18

F-Test ... 18

T-Test ... 18

Multiple Linear Regression Analysis ... 19

FINDINGS AND DATA ANALYSIS ... 20

Demographics ... 20

Validity Analysis ... 23

Reliability Analysis ... 24

Classical Assumptions ... 26

Normality Analysis ... 26

Heteroscedasticity Analysis ... 27

Linearity Analysis ... 28

Multi-collinearity Analysis ... 29

Hypothesis Analysis ... 30

T-Test (Partial) Analysis ... 30

F-Test (simultaneously) Analysis ... 32

Multiple Linear Regression Test ... 34

Descriptive Static Analysis ... 35

Discussion ... 37

Partial Influence ... 37

Simultaneously Influences ... 39

CONCLUSION ... 40

Conclusion ... 40

Theoritical Implication ... 40

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Validity Test Result ... 49

Reliability Test Result ... 52

Normality Test Result ... 54

Heteroscedasticity Test Result ... 54

Linearity Test, Multicollienearity Test, T-Test, and Regression Result ... 54

Coefficient of Correlation & Determination Test Result ... 56

Questionnaire ... 56

Questionnaire Responses ... 61

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LIST OF TABLES

Table 1 Operational Definition and Measurement of Variables ... 14

Table 2 Descriptive Statistics Analysis of Sample ... 20

Table 3 Pearson’s Correlation Validity Test Results ... 24

Table 4 Cronbach’s Alpha Reliability Test Results ... 25

Table 5 Results of the Normality Test ... 27

Table 6 Heteroscedasticity Test Result ... 28

Table 7 Linearity Test Results ... 29

Table 8 Multi-collinearity Test Result ... 30

Table 9 Result of T-Test ... 31

Table 10 Result of F-Test ... 33

Table 11 Coefficient of Corelation & Determinations ... 34

Table 12 Multiple Linear Regression Result Table ... 34

Table 13 Descriptive Static Interval ... 35

Table 14 Descriptive Static of Luxury Brand Image ... 36

Table 15 Descriptive Static of Perceived Price ... 36

Table 16 Descriptive Static of Perceived Quality ... 37

Table 17 Descriptive Static of Purchase Intention ... 37

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LIST OF FIGURES

Figure 1. Mobile Vendor Worldwide Rank 2018-mid 2022 ... 2

Figure 2. Mobile Vendor Indonesia Rank 2018-mid 2022 ... 3

Figure 3. Conceptual Framework... 10

Figure 4. Gender Static... 20

Figure 5. Spending Static ... 21