THE IMPACT OF BRAND ACTIVATION ON CUSTOMER TRUST: AN INVESTIGATION OF BRAND XYZ’S BRAND ACTIVATION
By
NICKALIS RAMADHAN 11503029
BACHELOR’S DEGREE in
BUSINESS ADMINISTRATION
FACULTY OF BUSINESS AND COMMUNICATION
SWISS GERMAN UNIVERSITY The Prominence Tower
Jalan Jalur Sutera Barat No. 15, Alam Sutera Tangerang, Banten 15143 - Indonesia
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.
Nickalis Ramadhan
_____________________________________________
Student Date
Approved by:
Dr, Nila K. Hidayat, S.E, M.M
_____________________________________________
Thesis Advisor Date
Dr. Nila K. Hidayat, S.E, M.M
_____________________________________________
Dean Date
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ABSTRACT
THE IMPACT OF BRAND ACTIVATION ON CUSTOMER TRUST: AN INVESTIGARION OF BRAND XYZ’S BRAND ACTIVATION
By
Nickalis Ramadhan
Dr. Nila K. Hidayat, S.E, M.M, Advisor SWISS GERMAN UNIVERSITY
Customer trust is one of the aspect for customers to keep buying a brand’s product.
The decrease of customer trust would mean people leaving the brand. Brand XYZ is experiencing a decrease in their customer trust and with today’s fierce competition between fast moving consumer goods (FMCG) brands, brands are forced to figure out new marketing campaigns, usually ones with direct customer engagement such as brand activation. Brand XYZ used brand activation strategy in the form of event to increase their customer trust towards their brand. To see the results and significance of this implemented strategy by the company, this research created the model to measure the impact of brand activation on customer trust for Brand XYZ’s brand activation event. The result of this study suggests that brand activation have a significant impact towards increasing customer trust. Theoretical implications and further recommendations made are based on the findings of this study.
© Copyright 2019 by Nickalis Ramadhan
All rights reserved
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DEDICATION
I dedicate this work to my beloved mother who always give her endless support unconditionally, and to my late father, may he rest in peace.
ACKNOWLEDGEMENTS
This research has been made into reality due to the endless support of many individuals. I would express to give my deepest gratitude to those who has been involved with the making of this thesis.
First of all, I would like to thank my god, Allah SWT, for all the blessings and good health necessary for me to complete my thesis.
I would also like to send my deepest gratitude to my mother, for giving me endless unconditional support and love. Also to my late father, even though he’s not present while I write this thesis, your memory and support carries on forever, may he rest in peace.
Next, I would like to say the biggest thank you to my advisor, Dr. Nila k. Hidayat, S.E, M.M. She has always given me support and provided me with the best guidance and insights that I need to finish this thesis.
I would also like to acknowledge Mr. Fiter Abadi as the head of Business Administration Department of Swiss German University for facilitating what was needed in completing this thesis and all the knowledge I have acquired through out my time in university.
I would like to acknowledge my best friends: Adam Nizar, Amelia Belva and Saskya Citrananda who I spent most time writing this thesis with, for all the support they have given. Also to all SGU Business Administration class of 2015, and all of my friends thank you for all your support.
Last but not least, I would like to express my gratitude to all the respondents who I cannot mention one by one. Also to other people that had helped me in completing my thesis.
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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 Problem ... 16
1.3 Research Objectives ... 17
1.4 Research Question ... 17
1.5 Research Limitations ... 18
1.6 Significance of Study ... 18
CHAPTER 2 –LITERATURE REVIEW ... 19
2.1 Framework of Thinking ... 19
2.2 Variables ... 20
2.2.1 Brand Activation Definition ... 20
2.2.1.1 Indicators of Brand Activation ... 23
2.2.2 Customer Trust Definition ... 24
2.2.2.1 Trust ... 25
2.2.2.2 Customer Trust ... 28
2.2.2.3 Indicators of Customer Trust ... 31
2.4 Study Differences ... 33
2.5 Research Model ... 34
2.6 Hypothesis... 34
CHAPTER 3 – RESEARCH METHODOLOGY ... 35
3.3.3 Sample Size ... 37
3.4 Collection Method ... 37
3.4.1 Types of Data ... 37
3.4.1.1 Primary Data ... 37
3.4.1.2 Secondary Data ... 37
3.4.3 Location and Time Frame ... 38
3.4.3 Collection Method ... 38
3.5 Variable Operationalization ... 39
3.6 Data Processing Procedures ... 41
3.6.1 Data Preparation ... 41
3.6.2 Data Screening ... 41
3.6.3 Validity Test ... 42
3.6.3.1 Validity Test Results ... 43
3.6.4 Reliability test ... 45
3.6.4.1 Reliability Test Results ... 46
3.7 Data Analysis Technique ... 47
3.7.1 Classical Assumption Tests ... 47
3.7.1.1 Normality Test ... 48
3.7.1.2 Heteroscedasticity Test ... 50
3.7.2 Further Interpretations ... 53
3.7.2.1 In-Depth Interview ... 53
3.7.2.2 Triangulation ... 53
CHAPTER 4 – RESULTS AND DISCUSSION ... 54
4.1 Descriptive Analysis - Brief of Brand XYZ ... 54
4.2 Descriptive Analysis - Respondent’s Profile ... 56
4.2.1 Age ... 56
4.2.2 Gender ... 57
4.2.3 Further Initial Screening ... 57
4.3.1 T-Test ... 58
4.3.2 F-Test ... 59
4.3.3 Coefficient Determination (R2) ... 60
4.4 Hypothesis Results and Analysis ... 61
4.4.1 Triangulation ... 63
4.4.1.1 Marketing Event Activation ... 64
4.4.1.2 Promotion Activation ... 65
4.4.1.3 Communication ... 67
CHAPTER 5 – CONCLUSION & RECOMMENDATION ... 70
5.1 Conclusion ... 70
5.2 Recommendations ... 72
5.2.1 Managerial Implications ... 72
5.2.2 Recommendations for further studies ... 74
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APPENDICES ... 75
Appendix 1 – Questionnaires ... 75
Appendix 2 – Questionnaires Results ... 80
Appendix 3 – Pretest Results ... 83
Appendix 4 – Transcript of in-depth Interview ... 85
Appendix 5 – Curriculum Vitae ... 88
REFERENCES ... 89
