Waluyo Sutanto,

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By

Wahono Sutanto 2-1553-012

MASTER’S DEGREE in

Master of Business Administration

Faculty of Business Administration and Humanities

SWISS GERMAN UNIVERSITY The Prominence Tower Alam Sutera, Tangerang 15339

Indonesia

August 2017

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Influence of 7P’s Marketing Mix to Home Buyer Purchase Decision on Tangerang Residential Housing Market

By

Wahono Sutanto 2-1553-012

MASTER’S DEGREE in

Master of Business Administration

Faculty of Business Administration and Humanities

SWISS GERMAN UNIVERSITY The Prominence Tower Alam Sutera, Tangerang 15339

Indonesia

Revision After Thesis Defence on August 11, 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.

Wahono Sutanto

Student Date

Approved by

Dr. Badikenita Sitepu, SE. M.Si

Thesis Advisor Date

Parhimpunan Simatupang, SE, MBA

Thesis Co-Advisor Date

Dr. Nila Krisnawati Hidayah, SE., MM.

Dean Date

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Influence of 7P’s Marketing Mix to Home Buyer Purchase Decision

on Tangerang Residential Housing Market 3 of 149

Wahono Sutanto ABSTRACT

INFUENCE OF 7P’s MARKETING MIX TO HOME BUYERS’ PURCHASE DECISION ON TANGERANG RESIDENTIAL HOUSING MARKET

By

Wahono Sutanto

Dr. Badikenita Sitepu, SE. M.Si, Advisor Parhimpunan Simatupang, SE, MBA, Co-Advisor

SWISS GERMAN UNIVERSITY

The purpose of this study is to analyze the influence of 7P’s marketing mix toward purchase decision in Tangerang residential housing market. The objective of the study is to provide whether there is positive relationship among 7P’s marketing mix which influence customer purchase decision. In this research, questionnaires were spread online to home buyer at Tangerang. In testing relationship between independent and dependent variable in the model are using Cronbach’s Alpha, Pearson’s Correlation and Regression. The researcher used closed ended self-administered questionnaires as a method of collecting data. The study was done on three hundred ninety-three respondents from home buyer at Tangerang. The finding of the study revealed that only five out of seven variable of 7P’s marketing mix have positive correlation to purchase decision in Tangerang residential housing market. To increase willingness to buy, developer should formulate market penetration strategy to create customer wants in terms of buying house.

Keywords: 7P’s marketing mix, Purchase Decision, Home Buyer, Residential Housing Market.

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Wahono Sutanto DEDICATION

I dedicated this thesis to my beloved Father and Mother

Sutrisno Sutanto & Sulina Andayana,

my beloved Brother

Waluyo Sutanto,

you let me create a wonderful

world where I can do what I love, thank you very much for the support.

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ACKNOWLEDGEMENTS

I would like to express my sincere gratitude and appreciation to my advisor, Dr. Badikenita Sitepu, SE, M.Si, and my co-adviser, Mr. Parhimpunan Simatupang, SE, MBA for they intellectual support and encouragement throughout my MBA program and her dedication of time and effort to guide my thesis research.

Thank you for all lectures and all the staffs of Master Business Administration Program of Swiss German University for the kind help and co-operation throughout my study period.

Thanks to all my classmates batch 27 Master of Business Administration SGU for their kind help and full encouragement throughout my study period. It is great moment with all of you in the class, GG WP.

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Wahono Sutanto TABLE OF CONTENTS

0

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 ... 14

1.1 Background Study ... 14

1.2 Research Problem ... 20

1.3 Research Questions ... 21

1.4 Objectives of the Study : ... 21

1.5 Significance of the Study ... 22

1.6 Limitation of the Study ... 23

1.7 Chapter Summary ... 23

CHAPTER 2 – LITERATURE REVIEW ... 24

2.1 Concepts of Marketing ... 24

2.2 Definition of consumer behavior ... 26

2.3 Model of consumer behaviour ... 27

2.4 Purchase decision-making process ... 28

2.4.1 Purchase decisions ... 29

2.5 Definition of Real Estate ... 30

2.6 7P’s Marketing Mix ... 30

2.7 Product ... 31

2.7.1 Intrinsic housing attributes ... 32

2.7.2 Extrinsic housing attributes... 33

2.7.2.1 Housing exterior design and space ... 33

2.7.2.2 Environmental attributes ... 33

2.8 Price ... 34

2.9 Place ... 37

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2.10 Promotion ... 39

2.11 People ... 40

2.12 Physical Evidence ... 41

2.13 Process ... 41

2.13.1 Factors that Influence Decision Making ... 41

2.13.1.1Past Experiences ... 42

2.13.1.2 Cognitive Biases ... 42

2.13.1.3 Escalation of Commitment ... 43

2.13.1.4 Individual Differences ... 43

2.13.1.5 Personal Relevance ... 43

2.14 Past Research ... 44

CHAPTER 3 - RESEARCH METHODOLOGY ... 51

3.1 Research Framework ... 51

3.2 Research Design ... 52

3.2.1 Time and Place of the research ... 52

3.2.2 Research Model ... 52

3.3 Research Question and Hypothesis ... 53

3.3.1 Research Questions ... 53

3.3.2 Research Hypothesis ... 53

3.4 Research Paradigm ... 54

3.5 Populations and Sample ... 55

3.5.1 Populations ... 55

3.5.2 Survey Sampling Method ... 56

3.6 Data Collection Method ... 57

3.6.1 Operational Variables ... 57

3.7 Data Analysis ... 60

3.7.1 Validity ... 60

3.7.2 Reliability ... 61

3.7.3 T-Test ... 62

3.7.4 F test ... 63

3.8 Multiple Linear Regression Analysis ... 64

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Wahono Sutanto

CHAPTER 4 – ANALYSIS AND DISCUSSION ... 66

4.1. Data Validity and Reliability for Respondents ... 67

4.1.1.Validity and Reliability Test of Product (X1)... 67

4.1.2.Validity and Reliability Test of Price (X2) ... 68

4.1.3.Validity and Reliability Test of Place (X3) ... 69

4.1.4.Validity and Reliability Test of Promotion (X4) ... 70

4.1.5.Validity and Reliability Test of People (X5) ... 71

4.1.6.Validity and Reliability Test of Pysical Evidence (X6) ... 72

4.1.7.Validity and Reliability Test of Process (X7) ... 73

4.1.8.Validity and Reliability Test of Purchase Decision (Y) ... 74

4.1.9 Summary of Pre-Test ... 74

4.2. Descriptive Statistic Result ... 75

4.2.1 Age ... 75

4.2.2 Marital Status ... 76

4.2.3 Education Background ... 77

4.2.4 Occupation ... 78

4.2.5 Monthly Income ... 79

4.3. Post-Test Analysis ... 79

4.3.1.Validity and Reliability in Post Test Analysis ... 79

4.3.2.1 Validity and Reliability Test of Product (X1) ... 81

4.3.2.2 Validity and Reliability Test of Price (X2) ... 82

4.3.2.3 Validity and Reliability Test of Place (X3) ... 83

4.3.2.4 Validity and Reliability Test of Promotion (X4) ... 84

4.3.2.5 Validity and Reliability Test of People (X5) ... 85

4.3.2.6 Validity and Reliability Test of Pysical Evidence (X6) ... 86

4.3.2.7 Validity and Reliability Test of Process (X7) ... 87

4.3.2.8 Validity and Reliability Test of Purchase Decision (Y) ... 88

4.4 Inference Statistic ... 88

4.4.1.F-Test Analysis ... 89

4.4.2 T-Test Analysis ... 89

4.5. Research Discussion ... 90

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4.6. Summary Chapter ... 91

CHAPTER 5 - CONCLUSION AND RECOMMENDATION ... 92

5.1. Conclusion ... 92

5.2. Recommendation ... 93

REFERENCES ... 95

Appendix 1. Perason Correlation Coefficient Table ... 101

Appendix 2. F Distribution Table for α = 0.05 ... 102

Appendix 3. T Distribution Table ... 103

Appendix 4. Result of Questionnaire of Product ... 104

Appendix 5. Result of Questionnaire of Price ... 109

Appendix 6. Result of Questionnaire of Place ... 114

Appendix 7. Result of Questionnaire of Promotion ... 119

Appendix 8. Result of Questionnaire of People ... 124

Appendix 9. Result of Questionnaire of Physical Evidence ... 129

Appendix 10. Result of Questionnaire of Process ... 134

Appendix 11. Result of Questionnaire of Purchase Decision ... 139

Appendix 12 Questionnaire ... 144

Respondent Profile ... 144

Exploratory Section ... 145

Curriculum Vitae ... 149