PURCHASE DECISION OF MICE PRODUCTS AT SANTA MONICA HOTEL &
CONVENTION BOGOR
By
Caroline Mutiara Prasandya 11403032
BACHELOR’S DEGREE in
BUSINESS ADMINISTRATION - HOTEL AND TOURISM MANAGEMENT concentration
FACULTY OF BUSINESS AND COMMUNICATION
SWISS GERMAN UNIVERSITY The Prominence Tower
Jalan Jalur Sutera Barat No. 15, Alam Sutera Tangerang, Banten 15143 - Indonesia
August 2018
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.
Caroline Mutiara Prasandya
______________________________ _______________
Student Date
Approved by:
Yudhistira Pratama, MBA
______________________________ _______________
Thesis Advisor Date
Dr. Nila K. Hidayat SE., MM.
______________________________ _______________
Dean Date
ABSTRACT
THE EFFECT OF MARKETING COMMUNICATION MIX TOWARDS THE PURCHASE DECISION OF MICE PRODUCTS AT SANTA MONICA HOTEL &
CONVENTION BOGOR
By
Caroline Mutiara Prasandya Yudhistira Pratama, MBA, Advisor
SWISS GERMAN UNIVERSITY
The MICE industry has been growing in Indonesia. With this potential, the lodging and accommodation businesses have a bright prospect of growth. Due to this matter, the accommodation industry is facing a tight competition, struggling to stand out from other establishments. Marketing communication mix has been proven to affect consumer’s buying behavior and simultaneously consumer’s purchase decision. This study investigates the effect of the five elements of marketing communication mix, namely advertising, personal selling, sales promotion, public relation, and direct marketing towards consumer’s purchase decision. The study is conducted at Santa Monica Hotel
& Conference Bogor, a convention hotel that focuses on the MICE market.
Questionnaires are distributed to 100 organizations that have held MICE activity at the hotel. The data is tested for validity, reliability, normality, heteroscedasticity, and multicollinearity. T-test and F-test is done to test the presence or absence of effect from each marketing communication mix elements towards purchase decision. The result shows that marketing communication mix does have simultaneous effect on purchase decision of MICE products, with personal selling and sales promotion as the elements that affect purchase decision. Advertising, public relation, and direct marketing does not show any effect towards purchase decision.
© Copyright 2018 by Caroline Mutiara Prasandya
All rights reserved
DEDICATION
For my parents, whose steady trust encourages me to accomplish greater things in life.
This is for you.
ACKNOWLEDGEMENT
I am very grateful to all that life has given to me during my thesis writing process. I received enormous support from all of the people around me. I would like to express my gratefulness to God first and foremost, as I believe all of this will not happen without His blessing. My sincere gratitude goes to these people around me, who has shown me that world is full of kindness:
1. My parents who have been my sole motivation to finish this thesis. Words will never be enough to describe how grateful I am to be their daughter.
2. To my thesis advisor, Mr. Yudhistira Pratama. His guidance light approach to this thesis work bring a new light and makes me believe that I can do it.
3. To Mrs. Munawaroh, Mrs. Jane Sweed, Mr. Mochammad Riyadh Rizky Adam and all of the lecturers and staff members that have assisted me during thesis work. I am grateful for every comments, lectures and guidance that helped me in writing this thesis.
4. To Mr. Alex Benyamin, the chairman of Santa Monica Group. Thank you for the opportunity to conduct my thesis in Santa Monica Hotel & Convention. My gratitude also goes to Mr. Johnny Soetrisno; general manager of Santa Monica Hotel & Convention for providing me with the data I needed.
5. To my dear friends- Ellen Ferranda, Adiel Kurnia, Olivia Tamara, Samuel Wibisono, Bethanya Claudya and Tasya. Their practical support and constant reminder of the deadline are always pushing me forward. I will never understand SPSS without you all of them. They will forever have a special place in my heart.
Lastly, all other parties that contributed in this thesis work, whose names I cannot mention one by one. Thank you.
TABLE OF CONTENTS
STATEMENT BY THE AUTHOR……….2
ABSTRACT……….……….…….3
DEDICATION……….……….5
ACKNOWLEDGEMENTS……….6
TABLE OF CONTENTS………...…..7
LIST OF FIGURES……….………...11
LIST OF TABLES………..12
CHAPTER 1 – INTRODUCTION 1.1. Background……….……….14
1.2. Research Problems………..….18
1.3. Research Questions………..18
1.4. Research Objectives……….19
1.5. Scope and Limitation………19
1.6. Significance of Study………...19
CHAPTER 2 – LITERATURE REVIEW 2.1. Conceptual Framework………21
2.2. Marketing……….22
2.2.1. Marketing in Hospitality Industry………22
2.3. Marketing Communication………..23
2.3.1. Communication………...24
2.4. Marketing Communication Mix………...25
2.4.1. Advertising………..26
2.4.2. Personal Selling………...26
2.4.3. Sales Promotion………...26
2.4.4. Public Relation………27
2.4.5. Direct Marketing……….27
2.6. Consumer’s Purchase Decision………29
2.6.1. Factors affecting consumer’s purchase decision………..29
2.7. MICE………31
2.8. Previous Studies………...32
2.9. Study Differences/Similarities……….38
2.9.1. Variables……….38
2.9.2. Subject……….39
2.10. Hypotheses……….39
CHAPTER 3 – RESEARCH METHOD 3.1. Type of Study………...40
3.2. Unit of Analysis and Unit of Observation………40
3.3. Sampling Design………..41
3.3.1. Population and Sample………41
3.3.2. Sampling Method………41
3.3.3. Sample Size……….42
3.4. Location and Time Frame of Study………..43
3.5. Data Sources and Collection Method………44
3.5.1. Type of Data………44
3.5.1.1. Primary Data………44
3.5.1.2. Secondary Data………44
3.5.2. Data Collection Method………..44
3.5.2.1. Library Research………..44
3.5.2.2. Field Work Research………45
3.5.3. Questionnaire Structure………...45
3.6. Research Model………46
3.7. Variable Operationalization……….47
3.8. Data Processing Procedures……….47
3.8.1. Data Preparation………..47
3.8.2. Data Screening………47
3.8.3. Validity Test………48
3.8.4. Reliability Test………48
3.9. Data Analysis Technique………..48
3.9.1. Classical Assumption Test………..48
3.9.1.1. Normality Test………..49
3.9.1.2. Heteroscedasticity Test………49
3.9.1.3. Multicollinearity Test………...49
3.9.2. Multiple Linear Regression……….49
3.9.2.1. T-test………50
3.9.2.2. F-test……….50
CHAPTER 4 – RESULTS AND DISCUSSION 4.1. Company Background………..50
4.2. Respondent Profiles………..52
4.3. Inferential Statistic Analysis……….58
4.3.1. Pre-test Result……….58
4.3.1.1. Validity Test……….58
4.3.1.2. Reliability Test……….59
4.3.2. Post-test………...59
4.3.2.1. Post-test Validity Test………..59
4.3.2.1.1. Advertising………...….59
4.3.2.1.2. Personal Selling……….59
4.3.2.1.3. Sales Promotion……….60
4.3.2.1.4. Public Relation………..60
4.3.2.1.5. Direct Marketing………...60
4.3.2.1.6. Purchase Decision……….60
4.3.2.2. Post-test Reliability Test………...60
4.4. Hypotheses Testing Result and Analysis……….61
4.4.1. Normality Test……….61
4.4.2. Heteroscedasticity Test………...………62
4.4.3. Multicollinearity Test………..62
4.4.4. Multiple Linear Regression Test………..63
4.4.4.1. Model Summary………...63
4.4.4.2. T-test………63
4.4.4.3. F-test……….65
4.5. Discussion………65
4.5.1. First Hypothesis………...65
4.5.3. Third Hypothesis……….66
4.5.4. Fourth Hypothesis………...66
4.5.5. Fifth Hypothesis………..67
4.5.6. Sixth Hypothesis……….67
CHAPTER 5 – CONCLUSION AND RECOMMENDATIONS 5.1. Conclusion………...67
5.2. Managerial Implications………...69
5.3. Recommendations for Further Study………71
GLOSSARY………72
REFERENCES……….………..73
APPENDICES……….………77
Questionnaire………..77
Pictures of Santa Monica Hotel & Convention………85
Curriculum Vitae……….87
