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By Janet Cecil

11303060

BACHELOR’S DEGREE in

BUSINESS ADMINISTRATION - HOTEL AND TOURISM CONCENTRATION

FACULTY OF BUSINESS ADMINISTRATION AND HUMANITIES

SWISS GERMAN UNIVERSITY The Prominence Tower

Jalan Jalur Sutera Barat No. 15, Alam Sutera Tangerang, Banten 15143 - Indonesia

August, 2017

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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.

Janet Cecil

_______________________________________________ _______________

Student Name Date

Approved by:

Esa Thedore Mbouw, BBA, MSc.

_________________________________________________ _______________

Thesis Advisor Date

Dr. Nila K. Hidayat SE., MM.

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ABSTRACT

IMPACT OF DIGITAL MARKETING TOWARDS BEHAVIOUR IN CHOOSING A BUDGET HOTEL IN BALI

By Janet Cecil

Esa Thedore Mbouw, BBA, MSc., Advisor

SWISS GERMAN UNIVERSITY

This study is aiming to have more knowledge and study further about the impacts of digital marketing towards tourists’ decision making of budget hotel selection when they travel to Bali. There are two variables that used in this study which is digital marketing as independent variable and consumers’ behavior as dependent variable. The research methods that used in this research is divided into two, which are secondary research through journals and books and primary data by distributing 130 questionnaires towards the research’s sample. Then, the data will be analyzed using SPSS system for Pre-Test (validity and reliability) and Post-Test (normality, heteroscedasticity, and hypothesis).

The finding of this research is shown that digital marketing makes 46.5 % impacts towards consumers’ behavior in selecting budget hotel in Bali. The result of this study is expected to be beneficial to the budget hotel company in order to promote more about the hotel towards potential guests.

Keywords: digital marketing, promotional tool, budget hotel, consumers’ behavior, consumers’ decision making, Bali

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© Copyright 2017 by Janet Cecil All rights reserved

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DEDICATION

I dedicate this research to myself, my family, and my friends. Also to the development of hospitality and tourism industry, especially in budget hotel sector in Indonesia.

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ACKNOWLEDGEMENTS

This thesis would not be complete without the help from the author’s surrounding. At first, the author wants to express her gratitude towards God who gave the author chance and blessing to do and finish this thesis. Above all, the author would like to say thank you to Mr. Esa Thedore Mbouw who supervised the author from the first time the author made this thesis until the author finish her thesis. The author realized that the author, who is a beginner to do a research, will not be able to finish this research without the help of him. His guidance and patience helped the author to improve this thesis in many ways.

The most important, the author is sincerely grateful towards her parents, Mr. Riyanto Budiman and Mrs. Rusmiati Widjaja for their endless love and support. Not to be left, the author wants to express her sister, Janet Siska, who always love and help the author when she had a problem. Without them, the author would not be able to do and finish her Bachelor in Hotel and Tourism Management. The author also want to share her gratitude to her friends, Prisca Natalia Yuspandi, Kezia Olive, Sarah Septiana, Calvin Harijadi, Maria Kusumaningrum Panuli, and Tiffanie Puti Barbangso, who always be at her side and for being great friends. Thank you for always listening to my concern and giving me words of encouragement. The author wishes all of you will have a very wonderful life ahead.

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TABLE OF CONTENTS

STATEMENT BY THE AUTHOR 2

ABSTRACT 3

DEDICATION 5

ACKNOWLEDGEMENTS 6

TABLE OF CONTENTS 7

LIST OF FIGURES 9

LIST OF TABLES 10

CHAPTER 1 - INTRODUCTION 11

1.1. Background 11

1.2. Research Problems 14

1.3. Research Objectives 14

1.4. Significance of Study 15

1.5. Research Questions 15

CHAPTER 2 - LITERATURE REVIEW 16

2.1. Determinants of Hotel Selection 16

2.2. Elements of Tourists 19

2.3. Brief Insight of Bali 22

2.4. Why People Choose Bali 22

2.5. Consideration of Budget Hotel 23

2.6. Marketing 25

2.6.1. Digital Marketing 26

2.8. Hyphotesis 27

2.9 Research Model 28

CHAPTER 3 – RESEARCH METHODS 29

3.1. Research Process 29

3.2. Type of Research 30

3.3. Type of Data 30

3.3.1. Secondary Data 30

3.3.2. Primary Data 31

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3.7. Method of Data Analysis 35

3.7.1. Pre-Testing 36

3.7.2. Post-testing 36

3.8. Reliabiliy and Validity 36

CHAPTER 4 - ANALYSIS DATA 37

4.1. Introduction 37

4.2. Demographics Data 37

4.2.1. Gender 38

4.2.2. Age Range 38

4.2.3. Education Level 39

4.2.4. Island of Origin 40

4.2.5. Occupation 40

4.3. Validity and Reliabikity Test (Pre-Test) 41

4.3.1. Validity Test (Pre-Test) 41

4.3.2. Reliability Test (Pre-Test) 44

4.4. Data Analysis 45

4.4.1. Classical Assumption Test 45

4.5. Results and Analysis 49

CHAPTER 5 – CONCLUSION AND RECOMMENDATION 51

5.1. Introductions 51

5.2. CONCLUSION 51

5.3. Limitations 52

5.4. Recommendations 52

GLOSSARY 56

REFERENCES 60

APPENDIX 1 – QUESTIONNAIRE IN ENGLISH 65

APPENDIX 2 – TABLE R 69

APPENDIX 3 – TABULATION DATA (PRE-TEST) 70

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