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TOWARDS CONSUMER PSYCHOLOGY IN CHOOSING PLACES TO DINE

By Floretta Setiadi

13312061

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

February 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.

Floretta Setiadi

____________________________________________

Student Date

Approved by:

Dr. Maria Sienly Veronica, S.E., M.M

____________________________________________

Thesis Advisor Date

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

____________________________________________

Dean Date

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ABSTRACT

THE INFLUENCE OF INDOOR SMOKING REGULATION TOWARDS CONSUMER PSYCHOLOGY IN CHOOSING PLACES TO DINE

By

Floretta Setiadi

Dr. Maria Sienly Veronica, S.E.,M.M., Advisor SWISS GERMAN UNIVERISTY

Smoking has been a habit in people lives. It was never really a problem, people who were smokers used to smoke on their daily basis doing their routines. They smoke when they are working, when they are doing nothing, and after they ate. As the country developed, many rules and regulations were made to stabilize and maintain the balance of people. Smoking in Indonesia are plenty, every corner you go smoker can easily be founded. This rule restricts smoking in several areas, not to mention hospitals, public transportation, work places and even restaurants. As it evolved, this regulation does not allow smokers to smoke in an indoor smoking facility located in restaurants. Based on this condition, this research is made and conducted to see whether this indoor smoking regulation affects the consumer-decision making regarding restaurants. This Casual Explanatory study is using SPSS software and Simple Linear Regression with Cluster sampling. 70 data are taken from restaurants in South Jakarta, via questionnaire and analysed through validity and reliability test, classical assumption test, and hypotheses test. It is proven that this rule effects consumer psychology in choosing places to dine with a number percentage of 13.4% . It is suggested that restaurants should make an outdoor smoking facility which now eveybody is demanding a place for them to smoke where there are no provided facilities outside.

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© Copyright 2017 by Floretta Setiadi All rights reserved

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DEDICATION

I dedicate this thesis work just to graduate after my batch’s graduation 4 months ago.

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ACKNOWLEDGEMENTS

First and foremost, I would like to thank God for everything that I am today. Thank you for giving me the strength and will to finish this final task. Words would never be enough to express my gratitude to the Almighty, just a sincere and humble thank you.

Second is my family whom is always in my heart. Mr. Tjong Siaou Kwong and Mrs.

Naomi Emi Rumengan, best folks in my life since forever. My parents have a big role in every steps of my growth, without their directions and guidance I would be lost.

Nothing can replace them, I love you guys so much. Hope you guys won’t get any older.

Third are my friends, those real supporting mates. Thank you Melati Samata Aji Irawanto for being there always, late night drives, conversations and perspectives toward the world. Ie-An Kung and Jessica Novia, gave me hard times yet supported me always. Arvin your silence is gold. Alifa T, Liswindwinanto W, Panji B.W, Alharis A, I Gusti Bagus G.D, 4 years of friendship and still counting. The rest of HTM A&B, we’ve made hotel history together.

Fourth is Bu Vero/Ping-ping, I just wanted to say thank you for taking a chance on me. Thank you for your patience in teaching me the things I need to know about thesis and getting it done. And those pep talks from you really meant something to me.

Next in line are my Oz mates, the Rydges Darwin crew. You guys rock the stage!

Everyday was a hurricane. Thanks to Dhook who believed in me. Mary you’re a handful but it was worth it. Ate Charlene, Ate Harlene, Ate Geni, you Filipinos know the drill. Kuya Rene, Frankie, Luci, Bibiek, Emma, Alan, Tamas, Jana, Jo, Ethan, Sophie, Cindy the driver, you guys made Oz memorable. The kitchen team will always be in heart as well, Chef Macoy, Tarit, Patty, Richie, Sammy, Jamie, Alex, Raymond, Dylan. And to Danielle, thank you for the coffees, movie dates, and sarcasm.

And last but not least thank you to all people who supported me through my ups and downs, sorry I couldn’t mention those names one by one. Thank you and God bless.

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TABLE OF CONTENTS

Page

STATEMENT BY THE AUTHOR ... 2

ABSTRACT ... 3

DEDICATION ... 5

CHAPTER 1 ... 12

1.1 Background ... 12

1.2 Research Problems ... 14

1.3 Research Objectives ... 14

1.4 Research Questions from the related research topic. ... 14

1.5 Significance of Study ... 14

1.6 Scopes and Limitation ... 14

CHAPTER 2 ... 14

2.1 Cigarettes ... 15

2.1.1 Contents of Cigarettes ... 16

2.2 Smoking History ... 16

2.2.1 Regulation of Smoking In Indonesia ... 17

2.3 Smoking Habit ... 20

2.4 Information Processing ... 21

2.4.1 Exposure ... 22

2.4.2 Attention ... 22

2.4.3 Comprehension ... 22

2.4.4 Acceptance ... 22

2.4.5 Retention ... 23

2.5 Marketing ... 23

2.5.1 Marketing Fundamentals ... 24

2.6 Consumer Behaviour ... 24

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2.6.3 Personal Factors ... 26

2.6.4 Consumer Psychology (Psychological Factors) ... 26

2.7 Consumer Decision Making Process ... 29

2.8 Previous Study ... 31

2.9 Framework of Thinking ... 40

2.9.1 Smoking Rule & Consumer Psychology ... 40

2.9.2 Consumer Psychology & Consumer Decision Making ... 40

2.9.3 Smoking Rule & Consumer Decision Making ... 41

2.10 Research Model ... 41

2.11 Hypothesis from the related research topic. ... 42

2.12 Difference From Previous Study ... 42

CHAPTER 3 ... 43

3.1 Type of Research ... 43

3.2 Type of Data ... 43

3.2.1 Primary Data ... 43

3.2.2 Secondary Data ... 43

3.3 Research Instrument ... 44

3.4 Operational Variable ... 44

3.5 Population and Sample ... 45

3.5.1 Population ... 45

3.5.2 Sample ... 45

3.5.3 Sampling Method ... 46

3.6 Data Testing ... 46

3.6.1 Pre-Testing ... 46

3.6.2 Post-Testing ... 46

3.7 Validity and Reliability ... 46

3.7.1 Validity ... 46

3.7.2 Reliability ... 47

3.8 Data Analysis ... 48

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CHAPTER 4 ... 51

4.1 Data Source ... 51

4.2 Respondent Profile ... 51

4.2.1 Gender ... 51

4.2.2 Age ... 52

4.2.3 Marital Status ... 52

4.2.4 Monthly Income ... 53

4.2.5 Occupation ... 53

4.3 Data Tabulation ... 54

4.4 Data Analysis ... 61

4.4.1 Validity and Reliability Test ... 51

4.4.2 Classical Assumption Test ... 68

4.5 Hypothesis Testing ... 72

4.6 Discussion ... 75

CHAPTER 5 ... 77

5.1 Conclusion ... 77

5.2 Recommendation ... 77

5.2.1 Recommendation For Future Research ... 77

5.2.2 Recommendation For Managerial Implication ... 78

GLOSSARY ... 79

REFERENCE ... 80

APPENDICES ... 83

CURRICULUM VITAE ... 93

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