marketing mix influencing generation y purchasing

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MARKETING MIX INFLUENCING GENERATION Y PURCHASING BEHAVIOR TOWARD THEIR SELECTION OF RESTAURANT

By

RIBKA HARYUNI 13311030

BACHELOR’S DEGREE in

BUSINESS ADMINISTRATION - HOTEL AND TOURISM MANAGEMENT CONCENTRATION

FACULTY OF BUSINESS ADMINISTRATION AND HUMANITIES

SWISS GERMAN UNIVERSITY EduTown BSD City

Tangerang 15339 Indonesia

August 2015

Revision after the Thesis Defense on August 3^rd, 2015

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MARKETING MIX INFLUENCING GENERATION Y PURCHASING

BEHAVIOR TOWARD THEIR SELECTION OF RESTAURANT Page 2 of 96

Ribka Haryuni 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.

Ribka Haryuni

___________________________________

Student Date

Approved by:

Pudyotomo A. Saroso

____________________________________________

Thesis Advisor Date

Prof. Eric Jos Nasution, MBA, MA, Ph.D

____________________________________________

Dean Date

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Ribka Haryuni ABSTRACT

MARKETING MIX INFLUENCING GENERATION Y PURCHASING BEHAVIOR TOWARD THEIR SELECTION OF RESTAURANT

By

Ribka Haryuni Mr. Tommy Saroso, Advisor

SWISS GERMAN UNIVERISTY

The purpose of this research is to identify if the marketing mix has any influence on Generation Y purchasing behavior toward their selection of restaurant. This research uses a quantitative methodology which questionnaires were constructed and distributed and the data was analyzed using Statistical Package for the Social Sciences (SPSS) with multiple regression. This research found that Millennials purchasing behavior can be influenced as much as 40.6% by marketing mix combination. The “people” variable give the highest contribution, “people” influence 21.4% Generation Y purchasing behavior toward their selection of restaurant.

Keywords: Marketing Mix, Generation Y, Purchasing Behavior

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Ribka Haryuni

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Ribka Haryuni DEDICATION

I dedicate this works for my beloved family

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Ribka Haryuni ACKNOWLEDGEMENTS

I would like to give thanks to Jesus Christ, for without His blessings this thesis would not have been completed successfully.

I wish to thank the members of my family who always been there for me and support me throughout the process. I would like to express my deepest gratitude towards Mr.

Tommy Saroso, who has given wonderful guidance and support, thoroughly shared his knowledge and helped me to complete the progression of this thesis work. Also special thanks for Dr. M. Sienly Veronica, S.E., M.M and Dr. Samuel PD Anantadjaya, BSc, MBA, MM, CFC, CFP, who have given major help and support regarding the data analysis.

I would like to give thanks to all the respondents who had already given their time to participate in this research, for without their participation and immense help, this research would not have been possible.

To my dear friends Keezia Wisanto, Irene Valentina, Egan Bratajaya, Robby Budiono, Ingrid Melvani, Joseph Edwin, and Kalelana Mahan Purusatama who have provided constant support and help throughout the completion of this thesis.

To all of my classmates with whom I spent my time with for the last four years.

Thanks for being such wonderful people to be with.

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Ribka Haryuni TABLE OF CONTENTS

STATEMENT BY THE AUTHOR ...2

ABSTRACT ...3

DEDICATION ...5

ACKNOWLEDGEMENTS ...6

TABLE OF CONTENTS ...7

LIST OF TABLES ... 10

LIST OF FIGURES ... 11

CHAPTER I INTRODUCTION ... 12

1.1 Background ... 12

1.2 Research Problems ... 14

1.3 Research Questions ... 15

1.4 Research Objectives ... 16

1.5 Significance of Study ... 16

1.6 Limitation ... 17

CHAPTER II LITERATURE REVIEW ... 18

2.1 Service Industry ... 18

2.2 Marketing ... 18

2.3 Marketing Mix ... 18

2.3.1 Product ... 20

2.3.2 Price ... 20

2.3.3 Promotion ... 20

2.3.4 Place ... 21

2.3.5 People ... 21

2.3.6 Process ... 22

2.3.7 Physical Evidence ... 22

2.4 Consumer Behavior... 22

2.5 Millennials ... 24

2.6 Previous Studies ... 26

2.7 Differences... 28

2.8 Research Model ... 29

2.9 Hypothesis ... 29

CHAPTER III RESEARCH METHODS ... 31

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Ribka Haryuni

3.1 Scope of Study ... 31

3.2 Operational Variable... 31

3.3 Time Frame of Study ... 33

3.4 Research Framework ... 34

3.5 Framework of Thinking... 35

3.6 Population and Sampling Method ... 36

3.7 Data Sources and Collection ... 37

3.8 Method of Analysis ... 38

CHAPTER IV DATA ANALYSIS ... 41

4.1 Respondents’ Profile ... 41

4.2 Descriptions on Research Variables ... 41

4.2.1 Independent Variable ... 41

4.2.2. Dependent Variable ... 43

4.3 Data Demographic ... 43

4.4 Results on Pre-test... 47

4.4.1 Validity... 47

4.4.2 Reliability ... 47

4.5 Results on Post-test ... 48

4.5.1 Validity... 48

4.5.2 Reliability ... 49

4.6 Classical Assumption Tests ... 49

4.6.1 Normality Test ... 49

4.6.2 Heteroscedasticity Test ... 50

4.7 Hypotheses Testing ... 51

CHAPTER V CONCLUSION AND RECOMMENDATIONS ... 56

5.1 Conclusion ... 56

5.2 Recommendations ... 58

GLOSSARY ... 60

REFERENCES ... 63

APPENDIX ... 65

APPENDIX A - Questionnaires... 65

APPENDIX B - Results of Pre-test Questionnaire Tabulations ... 77

APPENDIX C - Results of Questionnaire Tabulations ... 81

APPENDIX D –SPSS Output ... 87

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Ribka Haryuni CURRICULUM VITAE ... 96