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APPLICATION OF REGRESSION ANALYSIS IN
REVIEWING THE EFFECT OF STORE ATMOSPHERE ON THE PURCHASE DECISION PROCESS
Yunia Mulyani Azis1*, Sussy Susanti1, Ade Triana1
1 Management Study Program, Institute of Economic Science (STIE) Ekuitas, Indonesia
*Corresponding Author: [email protected]
Accepted: 1 Aug 2019 | Published: 1 September 2019
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Abstract: As the number of restaurants in Bandung grows, the competition in the industry is getting tougher. Therefore, an effort is needed to survive. One effort that can be done is to create a consumer-oriented marketing strategy that seeks to satisfy customers' needs and desires. This study aims to determine and analyze the influence of the Store Atmosphere on the Consumer Purchase Decision Process at the Chicken Day Resto Bandung. This research was conducted on consumers of Chicken Day Resto Bandung who made a process of purchasing decisions and the number of samples set was 100 respondents. This study uses a simple linear regression analysis. Based on the responses of consumers regarding store atmosphere obtained a fairly good value and regarding the process of purchasing decisions that fall into the good category. The results showed that the store atmosphere had a positive and significant effect on the process of purchasing decisions of 47.5% and 52.5% influenced by other variables not examined.
Keywords: Store Atmosphere, Purchasing Decision Process, Chicken Day Resto Bandung ___________________________________________________________________________
1. Introduction
The increasingly competitive competition requires companies to be able to implement strategies that can maintain and develop their companies. The success of a company in marketing its products is determined by a strategy tailored to the situation and conditions of the target market. Companies are required to be able to implement a more competitive marketing strategy that is able to analyze the situation, determine the right marketing targets, select and analyze target markets, and be able to design marketing strategies that can adapt to business dynamics that determine the existence of competitive competition. Marketing strategies in which there are satisfaction, pleasure and positive perceptions in the minds of consumers create an emotional attachment to them and the results will attract consumer buying interest and satisfy the needs and desires of consumers so that they make purchasing decisions.
Indonesia is a developing country, especially in the creative industry sector. The Deputy for Research, Education, and Development of the Creative Economy Agency (BEKRAF) revealed that in the past year it had contributed Rp. 642 trillion or 7.05 percent of Indonesia's total gross domestic product (GDP). The biggest contribution came from culinary efforts as
2 much as 32.4 percent, 27.9 percent mode, and craft 14.88 percent. In addition to contributing to the national GDP, the creative industry is the fourth largest sector in employment, with a national contribution of 10.7 percent or 11.8 million people (Tempo.co, 2016).
Based on that data, it can be seen that the creative industry sector contributes to national economic growth, marked by the data of the past year which contributed Rp. 642 trillion or 7.05 percent of Indonesia's total GDP and the largest contribution came from culinary efforts which contributed 32.4 percent of Rp. 642 trillion, this shows a very tight competition in culinary efforts in Indonesia. In other words, the company must be able to develop and maintain its existence if it does not want to experience setbacks in the business world.
Bandung as one of the culinary tourist destinations has one unique restaurant among the many restaurants in Bandung, namely the Chicken Day Resto. A restaurant located in Ruko Tritan Point A5 Jalan A.H. Nasution, Cipadung, Bandung city has two concepts namely indoor and outdoor. Chicken Day Resto Bandung itself has a quite adequate building with its two-story appearance and is supported by a large parking area and a wifi network that is fairly fast to attract the attention of consumers. But among the many advantages possessed, Chicken Day Resto Bandung still has problems, namely regarding sales reports that are still below the target set by the company. Marked by sales report data per month from January 2018 to September 2018. The data is shown in Table 1.
The fluctuations in sales data are due to the tight competition in the culinary field, especially in areas close to the business location of Chicken Day Resto Bandung, so businesses must package a place to have an advantage that can entice consumers to make purchases. In purchasing decisions, consumers not only respond to the goods and services offered but also provide a response to the purchasing environment that is pleasing to consumers. This makes the consumer choose the preferred store, restaurant, or cafe and make a purchase.
The in-store atmosphere, companies are not only oriented to benefits but also prioritize customer emotions by providing facilities that can provide satisfaction for customers to achieve a pleasant experience. This concept also encourages companies to be more creative in thinking about marketing steps that attract consumers to buy and become loyal to these products. In this case, the company needs to create a good store atmosphere so that consumers feel the atmosphere they want. Through the store atmosphere, marketers try to engage customers by conveying information related to services, prices, and availability of merchandise that is unique and creative.
Store Atmosphere will help determine the store's image and help position the store in the minds of consumers, lure consumers, make them comfortable and remind them what products need to be purchased. The main element of the store atmosphere is the atmosphere.
The atmosphere in the store is one of the various elements in the retail marketing mix. Store atmosphere aims to fulfill functional requirements while providing an enjoyable shopping experience that supports transactions. ‘Atmosphere refers to the store physical character that projects the image and draws customer.’ (Berman & Evans, 2010).
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Table 1: Sales Data At The Bandung Chicken Day Resto In January 2018 - September 2018
Month Sales Target Realization Percentage January Rp 20.000.000 Rp 14.686.000 73,43 % February Rp 20.000.000 Rp 15.118.000 75,59 % March Rp 20.000.000 Rp 17.665.000 88,32 % April Rp 20.000.000 Rp 16.210.000 81,05 % Mei Rp 20.000.000 Rp 13.696.000 68,48 % June Rp 20.000.000 Rp 13.445.000 67,22 % July Rp 20.000.000 Rp 13.456.000 67,28 % Agustus Rp 20.000.000 Rp 13.105.000 65,52 % September Rp 20.000.000 Rp 12.562.000 62,81 %
Source: Document Chicken Day Resto Bandung, October 2018
Store atmosphere is a very important physical characteristic owned by a retail business to be able to maintain consumers to feel comfortable and want to linger in the store visited so that they can calmly choose the products needed and can also stimulate the desire to buy unplanned (spontaneously).
Elements of the Store Atmosphere, according to (Berman & Evans, 2010) is divided into four elements, namely:
1. Exterior
2. General Interior 3. Store Layout 4. Interior Displays
Store atmosphere is one of the purchasing decisions by consumers, where purchasing decisions are a common consideration for consumers in the process of fulfilling the needs of goods and services. In buying and consuming something, consumers first make a decision about what products are needed, when, how and where the process of buying or consuming will occur. Thus the need for a decision-making process to buy something in the form of goods or services.
Purchasing decisions are the choice of two or more alternative purchasing decision choices, meaning that someone can make a decision, there must be several alternative choices.
Everyday consumers take various decisions regarding every aspect of daily life. However, consumers often take this decision without thinking about how to make decisions and what is involved in this decision-making process. Based on the definition from experts above, it can be concluded that purchasing decisions are the decision of consumers to buy goods or services, where consumers have previously evaluated goods or services that have been purchased as the selection of actions from two or more alternative choices regarding the process, method, act of buying, taking into account other factors about what was bought, when to buy, where to buy and how to pay.
4 This research has several problems, namely (1) how is the Store Atmosphere implemented at the Chicken Day Resto Bandung ?, (2) how is the Purchasing Decision Process in the Bandung Chicken Day Resto ?, and (3) how much the Store Atmosphere influences the purchasing decision process on Chicken Day Resto Bandung?
2. Literature Review
The atmosphere in the store is one of the various elements in the retail marketing mix. Store atmosphere aims to fulfill functional requirements while providing a pleasant shopping experience that supports transactions. Understanding the store atmosphere according to Berman, Barry, and Evans (2010) (Berman & Evans, 2010) is an atmosphere referring to the store physical characteristic that projects the image and draw of the customer. From this understanding, it can be said that store atmosphere is a very important physical characteristic owned by a retail business to be able to maintain consumers to feel comfortable and want to linger in the store visited so that they can calmly choose the products needed and can also stimulate the desire to buy unplanned (spontaneously). Based on the above understanding, it can be seen that the store atmosphere influences the consumer's image of a store which in turn will influence the buyer's decision to shop at the store.
Several national and international studies were conducted to analyze the influence of store atmosphere in marketing, both online marketing, and direct marketing. International researchers who have conducted research include Manganari, Siomkos, and Vrechopoulos (2009) (Manganari, Siomkos, & Vrechopoulos, 2009) who concluded that online store atmosphere influences various aspects of online consumer behavior, while Cho and Lee (2016) (Cho & Lee, 2016) say that store space, especially color interior in luxury fashion serves as an important marketing point for conveying brand's image to consumers. Singh, Katiyar, and Verma (2014) (Singh, 2014) reveal that all factors in store atmosphere have a significant effect on consumer behavior in deciding purchases. Research conducted by Hussain and Ali (2015) (Hussain, 2015) concluded that atmospheric variables such as cleanliness, scent, lighting and display/layout have a positive influence, whereas music and color have an impact on consumers purchase intention. The temperature has almost no impact on purchase intention of the consumers. Madjid (2014) (Madjid, 2014) explains that the store atmosphere has a significant effect on customer emotions and decisions, there for customer emotions have a significant effect on purchase decisions. Customer emotions act as partial mediating the relationship between the store atmospheres on purchase decisions. The role of mediation of customer emotions is a significant influence on increasing purchase decisions.
Tulipa, Gunawan, and Supit (2014) (Tulipa, Gunawan, & Henky Supit, 2014) state that physical facilities affect satisfaction. Display of product and point of purchase have a positive influence on emotions. Positive emotions give impact to customer satisfaction, then in turn satisfaction affect repurchase intention. So that it can be said that physical facilities affect satisfaction, where satisfaction affects consumer repurchases on a product.
A similar study was conducted by Indonesian researchers including Meldarianda and Lisan (2010) (Meldarianda & Henky Lisan, 2010) who stated that overall Store atmosphere in ROEMAH KOPI Bandung was considered quite good in the eyes of consumers, and the overall purchasing decision process at ROEMAH KOPI Bandung was considered good in the eyes of consumers. Princess, Kumadji, and Kusumawati (2014) (Putri, Kumadji, &
Kusumawati, 2014) explained that Store Atmosphere had a significant influence on Purchasing Decisions at Monopoli Cafe and Resto. Store Atmosphere has no significant
5 influence on Customer Satisfaction at Monopoli Cafe and Resto, and the Purchasing Decision has a significant influence on Customer Satisfaction at Monopoli Cafe and Resto. The conclusion is almost the same as stated by Maretha and Kuncoro (2011) (Maretha &
Kuncoro, 2011) which states that store atmosphere and store image have a significant effect on consumer purchasing decisions in Gramedia Pondok Indah bookstore. Waloejan (2016) (Waloejan, 2016) research on store atmosphere shows that the shop exterior, general interior, shop layout, and interior display significantly influence consumer purchasing decisions in Kawan Baru Mega Mas Manado restaurants. The results of Sugiman and Mandasari's research (2015) (Sugiman & Mandasari, 2015) prove that the four-store atmosphere variables consisting of the general exterior, general interior, store layout, and interior display have a positive and significant effect on purchasing decisions at Sanctuary. Of the four-store atmosphere variables, interior display variables are the most significant variables. Diawan, Kusumawati, and Mawardi (2016) (Satya, Kusumawati, & Mawardi, 2016) in their research stated that store atmosphere variables have a significant influence on purchase decision and customer satisfaction.
3. Methodology
In this study, the population is consumers who come to the Bandung Chicken Day Resto in the period January 2018 - September 2018, which is 4,050 people. The sampling technique used in this study is probability sampling technique, from the results of the calculation, it is known that the sample size needed is 100 respondents who came to visit the Chicken Day Resto Bandung.
The data analysis test was carried out with the following procedures (1) validity test, (2) reliability test, (3) classic assumption test (heteroscedasticity test, normality test), and (4) regression analysis
4. Results and Discussion
Validity and Reliability Test
Validity test is used to measure the validity of a questionnaire. A questionnaire is said to be valid if the question and questionnaire are able to reveal something that will be measured by the questionnaire. This validity test is done by correlating the total score produced by each respondent with the score of each item. Instruments can be declared valid if the value of the r- count coefficient obtained> r-table (0.361).
Data reliability testing is used to show the extent to which the measurement results have been consistent if done twice or more of the same symptoms. The reliability test in this study used Cronbach's Alpha technique. The instrument is said to be reliable if the value of Cronbach's Alpha is greater than 0.6. The results of testing the validity and reliability of the store atmosphere (variable X) and purchasing decisions (variable Y) are shown in Table 2 and Table 3.
Table 2 described all statements that form the store atmosphere have a calculated r-value above the r-table value so that all statements are declared valid. In Table 3, it can be seen that all statements that make up the purchasing decision process have a calculated r-value above the r-table value so that all statements are declared valid.
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Table 2: Validity And Variable Reliability X Test Results Variable Dimension Indicator Item Data
Scale
Item No.
r- count
r-
table Conclusion
Store Atmosphere (X)
Exterior
• Storefront
• Store name board
• Store environment
• Parking lot
Attractive level of storefront appearance.
Ordinal
1 0.543 0.361 Valid The level of
clarity of the store nameplate.
2 0.433 0.361 Valid The level of
security and comfort of the shop
environment.
3 0.591 0.361 Valid The extent of the
parking area. 4 0.699 0.361 Valid
General Interior
• Floor type
• Color and lighting
• Aroma and music
• Shop equipment
• Air temperature
Level of cleanliness of the shop floor.
Ordinal
5 0.567 0.361 Valid Attractive level
of color design and lighting.
6 0.632 0.361 Valid The level of
fragrance that is fragrant and the music playing.
7 0.723 0.361 Valid The level of
neatness of table placement.
8 0.368 0.361 Valid The temperature
level is always maintained.
9 0.669 0.361 Valid The cleanliness
and comfort of changing rooms/toilets are important.
10 0.524 0.361 Valid Level of
employee friendliness.
11 0.485 0.361 Valid Level of the
existence of sophisticated store technology.
12 0.527 0.361 Valid
Store Layout
• Dressing room/toilet
• Employees
The level of placement of the payment desk facilitates
transactions. Ordinal
13 0.578 0.361 Valid Level of comfort
in layout settings.
14 0.572 0.361 Valid
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Table 3: Validity And Variable Reliability X Test Results Variable Dimension Indicator Item Data
Scale Item No. r-count r-table Conclusion
Interior Display
• Techno- logy
The level of uniqueness of store
decorations in each theme or holidays.
Ordinal
15 0.562 0.361 Valid
The level of interesting food
pictures/posters
16 0.589 0.361 Valid
The level of an attractive meal package
17 0.587 0.361 Valid
Reliability Coefficient 0.864
Critical Point 0.600
Information Reliable
Table 4: Validity And Variable Reliability Y Test Results Variable Dimension Indicator Item Data
Scale
Item No.
r- count
r-
table Conclusion
Purchasing Decision (Y)
Introduction to the Problem
• Internal stimulation
The level of
personal desire Ordinal 1 0.753 0.361 Valid
Information Search
• Personal sources
•
Experimental sources
Level of influence from the family
Ordinal
2 0.694 0.361 Valid Level of
influence of experience from someone/friend
3 0.728 0.361 Valid
Alternative
Evaluation •Needs
Level of food/drink according to
needs Ordinal
4 0.599 0.361 Valid The level of
stability of the benefits of a food/drink
5 0.701 0.361 Valid
Buying
decision • Benefits
• Products
The level of stability in choosing a product
Ordinal
6 0.471 0.361 Valid The degree of
stability in choosing a brand
7 0.476 0.361 Valid Level of time to
buy products 8 0.742 0.361 Valid
Post- purchase behavior
• Brand
Post-purchase satisfaction level
Ordinal
9 0.736 0.361 Valid The level of
decision to make a repeat
purchase
10 0.556 0.361 Valid
Reliability Coefficient 0.845
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Critical Point 0.600
Information Reliable
Table 5: Data Normality Test Results
Classic Assumption Test Heteroscedasticity Test
Based on Figure 1, it is known that the points obtained from an irregular random pattern and if drawn vertically and horizontally at zero, these points are still divided into four quadrants, so that the residual variance in the data is homoscedasticity.
Normality Test
Based on the results of testing the normality of data shown in Table 4, it can be seen that the probability value obtained by each variable> 0.05 indicates that the data used is normally distributed so that it can be said that the assumption of data normality is fulfilled.
9 Testing of Partial Hypotheses (t-Test)
The research hypothesis is partial as follows,
: Store atmosphere has no significant effect on the purchasing decision process of Chicken Day Resto Bandung.
: Store atmosphere has a significant effect on the purchasing decision process of Chicken Day Resto Bandung.
denote that significance level (α) is set to 0.05 (5%)
Based on Table 5, it is known that the t-calculated value obtained is 9.420. This value will be compared with the t-table value in the distribution table t. With α = 0.05, df = n-k-1 = 100-1- 1 = 98, obtained t-table value in the distribution table t ± 1.984. From the above values, it can be seen that the calculated t-value is 9,420, which is outside the value of t-table (-1,984 and 1,984). In accordance with the testing criteria of the hypothesis that H0 is rejected and Ha is accepted, it means the store atmosphere has a significant effect on the purchasing process of the Chicken Day Resto Bandung.
Correlation Analysis
Based on Table 6, it is known that the correlation coefficient obtained is 0.689. The correlation value is positive, which shows that the relationship that occurs is in the same direction, where the better the store atmosphere, it will be followed by the higher process of purchasing decisions. Based on the interpretation of the correlation coefficient, a value of 0.689 belongs to the category of strong relationships, in the class interval between 0.600 - 0.799.
Coefficient of Determination
Based on Table 7, it can be seen that the correlation value (R) is 0.689, with a coefficient of determination of 47.5%. From the results of the calculation above it can be seen that the coefficient of determination obtained is 47.5%. This shows that the store atmosphere contributes to the purchasing decision process of 47.5%, while the remaining 52.5% is a contribution from other variables not examined.
Table 6: Linear Regression Equation Analysis
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Table 7: Correlations Analysis
Table 8: Coefficient Of Determination
5. Conclusions
Store atmosphere in the Chicken Day Resto Bandung is categorized quite well. But the respondent's response to the interior display indicator was at the lowest interval because the atmosphere provided was less attractive.
The process of purchasing decisions at the Chicken Day Resto Bandung is categorized well.
But the value of the post-purchase behavior indicator has the lowest value of the other indicators, this shows that respondents feel less satisfied after buying a product at the Chicken Day Resto Bandung.
Store atmosphere contributes to the purchase process of Chicken Day Resto Bandung by 47.5% while the remaining 52.5% is contributed by other variables not examined. This shows that Store Atmosphere in Bandung's Chicken Day Resto has a high influence on the Purchasing Decision Process.
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