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THE INFLUENCE OF BRAND AWARENESS,
PERCEIVED QUALITY, AND BRAND ASSOCIATION
ON CUSTOMER PURCHASE DECISION
(A CASE STUDY AT PRESIDENT UNIVERSITY
EXTENSION PROGRAM BATCH 2012)
By
Kristedy Rinto
014200900430
A thesis presented to the
Faculty of Economics President University
In partial fulfillment of the requirements for
Bachelor Degree in Economics Major in Management
March 2013
THESIS ADVISER
RECOMMENDATION LETTER
This Thesis “The Influence of Brand Awareness, Perceived Quality, and Brand
Association on Customer Purchase Decision (A Case Study at President
University Extension Program Batch 2012)” prepared and submitted by Kristedy
Rinto in partial fulfillment of the requirements for Bachelor Degree in Economics -
Major in Management, has been reviewed and found to have satisfied the
requirements for a thesis fit to be examined. We therefore recommend this thesis for
Oral Defense.
Cikarang, Indonesia, 29 January 2013
Acknowledge Thesis Advisor,
.............................................................. ......................................... Irfan Z Habsjah, MBA, CMA Purwanto, ST, MM Head, Management Study Program
PANEL OF EXAMINERS
APPROVAL SHEET
The Panel of Examiners declare that the thesis entitled “The Influence of
Brand Awareness, Perceived Quality, and Brand Association on
Customer Purchase Decision (A Case Study at President University
Extension Program Batch 2012)” submitted by Kristedy Rinto
majoring in Management, Faculty of Economics was assessed and
proved to have passed the Oral Examination on March 1, 2013.
T. Manivasugen, MBA Chair – Panel of Examiner
Sony Vinn Sutedjo, SE, MM
Examiner 1
Purwanto, ST, MM Examiner 2
DECLARATION OF ORIGINALITY
I declare that this thesis entitled “The Influence of Brand Awareness,
Perceived Quality, and Brand Association on Customer Purchase
Decision (A Case Study at President University Extension Program
Batch 2012)” is, to the best of my knowledge and belief, an original
piece of work that has not been submitted, either in whole or in part, to
another university to obtain a degree.
Cikarang, Indonesia, 29 January 2013
Researcher,
....................................... Kristedy Rinto
014200900430
ABSTRACT
Higher education is considered as one of the most valued investment for most people. As the needs of education increase the competition in private universities increase, branding is becoming as one of the most important thing to conduct in order to survive in the competition. This study aims to determine whether the factor of brand awareness, perceived quality, and brand association affects student decisions to continue his studies at the President University extension class.
These research data were collected from President University extension class student batch 2012 with 110 students’ respondents as the sample. The data were collected based on probability, random stratified sample where population were categorized into an equal category where from each category the data are taken randomly.
The most influential variable on the independent variable is the brand awareness (0.241), followed by the variable of perceived quality (0.235), then the last is the brand association variable (0.225). T test result prove that the independent variable affects the dependent variable is the decision to continue their studies at President University extension class and the coefficient of determination (adjusted R Square) obtained 0.228 which means 22% of the study decision variable can be explained by the variable of brand awareness, perceived quality, and brand association, while the remaining 78% is influenced by other variables not examined in this study. F-test result provide that brand awareness, perceived quality, and brand association has significant influence towards purchase decision simultaneously.
Key words: brand equity, purchase decision, university, consumer behavior.
ACKNOWLEDGEMENT
First of all, I wish to express my greatest gratitude to My Lord Jesus Christ who has given strength and joy to make all of this possible. I also want to thanks for my family, My Mom and Dad, Mas Ryan, and Diny for their endless support and love. I also wish to thanks to My awesome thesis advisor Mr. Purwanto, thanks for the great help with my thesis, I hope my thesis could bring any good to the campus, you’re the best. I also wish to thanks to Mr. Manivasugen, Mr. Sony, Mr. Heri, Mr. Inyo, Mrs. Jacinta, and all of the lecturers which not only give me an academic lesson but life’s lessons as well,at the bottom of my heart I express my biggest gratitude. As for my friends I wish to thanks to Elizabeth Rompis, Diovanni, Rima, Bimo, Kuye, Laila, and others who I can’t mention one by one, thank you guys you are all awesome! and not forget to mention those great people in the academic, Mr. Boy, and Mr. Agung, and the staff, thank you for your help. It was countless long journey that I am able to make all of this possible, but for all I’ve been through in this campus I would say that everything is worth it. I know no regrets. Therefore I would to share this poem Ithaca, one of my favorite:
ITHACA
When you set sail for Ithaca, wish for the road to be long,
full of adventures, full of knowledge. The Lestrygonians and the Cyclopes,
an angry Poseidon — do not fear. You will never find such on your path,
if your thoughts remain lofty, and your spirit and body are touched by a fine emotion.
The Lestrygonians and the Cyclopes, a savage Poseidon you will not encounter, if you do not carry them within your spirit,
if your spirit does not place them before you.
Wish for the road to be long. Many the summer mornings to be when
with what pleasure, what joy you will enter ports seen for the first time.
Stop at Phoenician markets, and purchase the fine goods,
nacre and coral, amber and ebony, and exquisite perfumes of all sorts,
the most delicate fragrances you can find. To many Egyptian cities you must go, to learn and learn from the cultivated.
Always keep Ithaca in your mind. To arrive there is your final destination.
But do not hurry the voyage at all. It is better for it to last many years, and when old to rest in the island,
rich with all you have gained on the way, not expecting Ithaca to offer you wealth.
Ithaca has given you the beautiful journey. Without her you would not have set out on the
road.
Nothing more does she have to give you. And if you find her poor, Ithaca has not
deceived you. Wise as you have become, with so much
experience, you must already have understood what
Ithacas mean. Constantine P. Cavafy (1863-1933)
TABLE OF CONTENTS
THESIS ADVISOR RECOMMENDATION LETTER ................................................. i PANEL OF EXAMINERS APPROVAL SHEET .......................................................... ii DECLARATION OF ORIGINALITY ............................................................................ iii ABSTRACT ...................................................................................................................... iv ACKNOLEDGEMENT .................................................................................................... v TABLE OF CONTENT .................................................................................................... vi LIST OF TABLES ............................................................................................................ ix LIST OF FIGURES ........................................................................................................... x Chapter 1: Introduction ..................................................................................................... 1 1.1 Background of the Study ................................................................................ 1
1.2 Company Profile ............................................................................................. 4
1.3 Problems Identified ........................................................................................ 5
1.4 Problems Statement ........................................................................................ 6
1.5 Research Objective ......................................................................................... 6
1.6 Significance of the Study ............................................................................... 6
1.6.1 Researcher.................................................................................................. 6
1.6.2 President University .................................................................................. 6
1.6.3 Academic ................................................................................................... 7
1.7 Theoretical Framework ................................................................................. 7
1.8 Scope and Limitations of the Study............................................................... 8
1.9 Hypothesis ....................................................................................................... 8
1.10 Definition of Terms ...................................................................................... 9
1.11 Systematic Writings ..................................................................................... 10
Chapter 2: Literature Review............................................................................................ 11
2.1 Brand ............................................................................................................... 11
2.2 Brand Equity ................................................................................................... 13
2.3 Brand Awareness ............................................................................................ 15
2.4 Perceived Quality ........................................................................................... 17
2.5 Brand Association........................................................................................... 19
2.6 Purchase Decision........................................................................................... 22
2.7 Previous Research........................................................................................... 24
Chapter 3: Methodology ................................................................................................... 26 3.1 Research Method ............................................................................................ 26
3.2 Research Time and Place ............................................................................... 26
3.3 Research Design ............................................................................................. 27
3.3.1 Variable of the Study ................................................................................ 28
3.3.2 Type of Data .............................................................................................. 29
3.3.2.1 Primary Data ................................................................................... 29
3.3.2.2 Secondary Data ............................................................................... 29
3.4 Research Instrument ....................................................................................... 29
3.4.1 Questionnaire ............................................................................................. 29
3.4.2 Likert Scale ................................................................................................ 30
3.4.3 Validity ...................................................................................................... 31
3.4.4 Reliability .................................................................................................. 33
3.4.5 Classic Assumption Test ........................................................................... 34
3.4.5.1 Normality Test ................................................................................ 34
3.4.5.2 Multicollinearity Test ..................................................................... 35
3.4.5.3 Heteroscedasticity ........................................................................... 35
3.5 Sampling Design ............................................................................................. 33
3.6 Data Analysis .................................................................................................. 37
3.6.1 Multiple Regression Analysis................................................................... 38
3.7 Hypothesis Test .............................................................................................. 38
3.7.1 Coefficient of Determination .................................................................... 38
3.7.2 F-Test (Simlutan) ...................................................................................... 38
3.7.3 T-Test (Partial) .......................................................................................... 39
Chapter 4: Analysis of Data and Interpretation of Results ............................................. 40 4.1 Characteristics of Respondents ...................................................................... 40
4.1.1 Gender ........................................................................................................ 40
4.1.2 Major .......................................................................................................... 41
4.2 Respondent Distribution Descriptive Analysis ............................................. 42
4.2.1 Brand Awareness ....................................................................................... 42
4.2.2 Perceived Quality ...................................................................................... 44
4.2.3 Brand Association ..................................................................................... 46
4.2.4 Purchase Decision ..................................................................................... 48
4.3 Model Evaluation ........................................................................................... 50
4.3.1 Normality Test ........................................................................................... 50
4.3.2 Multicollinearity Test ................................................................................ 52
4.3.3 Heteroscedasticity Test ............................................................................. 53
4.4 Regression Model ........................................................................................... 54
4.5 Hypothesis Test .............................................................................................. 55
4.5.1 Coefficient of Determination .................................................................... 55
4.5.2 F-Test ......................................................................................................... 56
4.5.3 T-Test ........................................................................................................ 57
4.6 Result Interpretation ....................................................................................... 59
Chapter 5: Conclusion and Recommendation ................................................................. 61 5.1 Conclusion ...................................................................................................... 61
5.2 Recommendations .......................................................................................... 62
5.2.1 Recommendations for President University ............................................ 63
5.2.2 Recommendations for the Next Research ................................................ 63
REFERENCES .................................................................................................................. 64
APPENDIX 1 ................................................................................................................... 68
APPENDIX 2 ................................................................................................................... 69
LIST OF TABLES
1.1 The Active Students in President University Extension Class from 2009
- 2012 .............................................................................................................................. 7
3.1 List of Indicators ............................................................................................................. 30
3.2 Validity Test .................................................................................................................... 32
3.3 Reliability Test ................................................................................................................ 34
4.1 Multicollinearity Test...................................................................................................... 52
4.2 Multiple Linear Regression ............................................................................................ 54
4.3 Coefficient of Determination .......................................................................................... 55
4.4 F-Test ............................................................................................................................... 56
4.5 T-Test ............................................................................................................................... 57
LIST OF FIGURES
1.1 Brand Awareness, Perceived Quality, and Brand Association Influence
on Purchase Decision ..................................................................................................... 7
2.1 Brand Equity Model ........................................................................................................ 14
2.2 Measurement of Brand Awareness ................................................................................ 16
2.3 Consumer Decision Process ........................................................................................... 23
3.1 Research Design .............................................................................................................. 27
4.1 Gender Distribution......................................................................................................... 40
4.2 Major Distribution ........................................................................................................... 41
4.3 Brand Awareness ............................................................................................................ 42
4.4 Perceived Quality ............................................................................................................ 44
4.5 Brand Association ........................................................................................................... 46
4.6 Purchase Decision ........................................................................................................... 48
4.7 Histogram ........................................................................................................................ 50
4.8 Normal Probability Plot .................................................................................................. 5
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CHAPTER I
INTRODUCTION
1.1 Background of the Study
Brand is a promise to consistently provide the seller privileges, benefits, and
services to buyers (Kotler, 2010). The best brands deliver quality assurance.
Furthermore, the actual brand is a tangible value and intangible value, represented
in a trademark which is able creates its own influence on the market when it is set
correctly. Brand plays an important role, one of which is bridge the expectations
of consumers at the time the company promises something to consumers
(Durianto et al, 2004). Thus, it can be seen the emotional bond created between
consumers and companies through the brands. Competitors may offer similar
products, but they may not offer the same promise of emotional connection.
Brands that have a good perception generally would be more attractive to buy
because consumers would believe that the brand has good and reliable quality.
Therefore, at this time the brand has become an important asset in the business
world. Characteristics of the brand play a very important role in determining
whether a customer decides to trust to a brand or not. Only brands that are well
managed capable of attracting the attention of consumers and stimulate consumers
to make purchases or even repeat purchase decisions.
The increasing awareness among the people about the importance of education
has raised the needs of university. Supported by a large population of high school
students which currently stands around 8.500.000 students and steady economic
growth at 6.17%, the education sector is moving fast (Kompas, 2012).
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Higher education institutions are realizing that higher education could be regarded
as a business-like service industry and they are beginning to focus more on
meeting or even exceeding the needs of their students. This development is
especially true for countries with a tuition-based model (DeShields et al, 2005).
Therefore private universities may consider themselves as a service based
business which aims to deliver qualified service to customers and answer to what
their customer needs. Universities developed many programs to attract their
prospective students such as developing internship program, work placement
guarantee, attractive scholarship, etc. Universities have realized that their long-
term survival depends on how good their services are and that quality sets one
university apart from the rest (Aly and Akpovi, 2001).
As any sweet deals, the education business is also tight with competition, as noted
by Suharyadi, Chairman of the Association of Private Higher Education Indonesia
(APTISI) :
“The surge in private universities (PTS) could reach 200 institutions every year.
This is simply due to the ease of getting permission. However, in reality, many
private universities provide education by ignoring quality standards" said
Suharyadi, who is also Chancellor of the Mercu Buana university, Jakarta. Year
2006/2007 for example, there are 2556 PTS, while the year 2007/2008 up to 2596
PTS (Kompas, 2010).
The tight competition between private universities demanding every institution to
push their limits to the best, and in this tight competition, brand is certainly taking
parts in affecting student’s decision.
President University is a private university with an international curriculum
standards located at Jababeka Education Park in Cikarang, Indonesia. President
University first founded in 2001, offering a Bachelor of Engineering degree. At
that time, the institution was called the School of Engineering based in Cikarang,
Bekasi. On 16 April 2004, the Ministry of Education granted President University
official status as a full-fledged university.
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President University serves 32 major for regular class and 5 major for extension
class. Regular class is intended for high school graduate while extension class in
intended for professionals who wish to continue his education as he works. The
extension class starts on evening at 18.30.
Despite its age which considered as young, President University has been able to
attract students from local as well as abroad. There are around 3,500 students that
join to study in President University. These numbers are also contributed by the
extension class as well.
Table 1.1: The Active Students in President University Extension Class
from 2009 - 2012
Major/Year 2009 2010 2011 2012 Total
IS 13 25 47 47 132
IE 45 51 108 124 328
PR 12 19 19 32 82
MGT 21 31 69 71 192
ACC 21 24 55 55 155
*IT 10
Total 122 150 298 329 889
* IT was merged with IS in 2010
(Source: President University Academic Department)
Based on the data above it is very clear that extension class is contributing a
significant number of students to President University, moreover the trends of
active students are increasing year by year. This intrigues researcher curiosity
regarding the phenomena “How does brand play its part to bring them to President
University?” Therefore this research will analyze the brand awareness, perceived
quality, and brand association influence to the student’s decision to study in
President University extension class.
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1.2 Company Profile
According to President University’s founder, Mr. Setyono Djuandi Darmono,
President University was built for two reasons; to become a research and
development center and to set a new benchmark in Indonesian higher education.
The founders of President University laid down the foundation and ground work
to ensure that President University will develop into a great institution of learning
where students from all parts of the world can acquire knowledge and develop
into useful, responsible citizens and future leaders.
President University is located in Jababeka Education Park in Kota Jababeka. It is
surrounded by the Jababeka Industrial Estate with more than 1,500 national as
well as multinational companies from 30 nations, such as Mulia, Unilever,
Samsung, Mattel, ICI Paint, Kraft and others. It’s location also allows students to
make use of world-class facilities such as the Jababeka Golf and Country Club
and the President Executive Club.
As an international standard university, not only are the classes conducted in
English, but President University is equipped with an international standard
curriculum which was made and developed by world-class academics. All
courses, including the state mandatory courses, are conducted in English. Students
will speak, write, learn and think in English, the global language of today.
The conceptual plan of President University was first formulated in September
1997 by Mr. S. D. Darmono, the President Director of PT Jababeka Tbk. and Prof.
Donald W. Watts, who was the President of Bond University, Queensland and
Vice Chancellor of Curtin University, Western Australia. The goal of their
proposed university was to create an institution of learning which would prepare
future leaders of industry and society by giving them the skills and experience
necessary to excel upon graduation.
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The University officially began in 2001, offering a Bachelor of Engineering
degree. At that time, the institution was called the School of Engineering based in
Cikarang, Bekasi. On 16 April 2004, the Ministry of Education granted President
University official status as a full-fledged university.
Although still a young university, President University (PresUniv) is growing at a
tremendous rate every year. There are now around 3,500 students attending
President University from Indonesia as well as many other countries. President
University has expanded its course offerings and now offers 32 different majors in
subjects ranging from Industrial Engineering to Public Relations.
President University also offer classes for the profesionals who wishes to continue
their sudies, therefore President University extension class is provided offering 5
major; Management, Accounting, Public Relations, Industrial Engineering, and
Information Technology. Tailored to fullfilled the professionals needs, the
extension class is started on 18.30 to 21.00 which suited with the schedule of
students who worked during the office hour.
1.3 Problems Identified
In order to endure in the tight competition university has to manage its brand
towards the customers as it is play an important role in the customer purchase
decision. Based on the data obtained it can be concluded that President University
extension class students has increased year by year and hits the highest in 2012
which record 329 students. Therefore this research will study how brand
awareness, perceived quality, and brand association influences the student’s
purchase decision to study in President University extension class.
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1.4 Problems Statement
Based on these issues then comes the question of research as follows:
1. How are brand awareness, perception of quality, and brand association
affecting students’ purchase decisions to study at President University
extension class partially?
2. How are brand awareness, perception of quality, and brand association
affecting students’ purchase decisions to study at President University
extension class simultaneously?
1.5 Research Objective
The purposes of this research are resumed in the following statements:
1. The researcher wants to find out the relationship between brand awareness,
perceived quality, and brand association towards the students decision to
study in President University.
2. The researcher wants to find out how does brand equity elements take its
role in increasing trend of students in President University extension class.
1.6 Significance of the Study
1.6.1 Researcher
This research is contributing as one of the graduation requirement for
bachelor degree. Moreover through this research, researcher
knowledge has been enhanced especially in terms of branding in the
education industry.
1.6.2 President University
For President University this research would be contributing for
President University insight especially on its brand. By finding how
does brand contributing to the customer purchase decision President
University could analyze and optimize its brand to increase its brand
value and shape a better branding strategy.
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1.6.3 Academic
For the academic of President University this research can contribute
to extending the knowledge of branding especially in education
industry.
1.7 Theoretical Framework
Based on David Aaker theory of brand equity there are five brand equity
categories which are: brand awareness, perceived qualities, brand association,
brand loyalty, and other proprietary asset such as patents, trademarks, and channel
relationship. This research will take three elements of the brand equity which are
brand awareness, perceived quality, and brand association to analyze President
University brand, while the basic theory of customer purchase/study decision is
taken from Philip Kotler theory of purchasing decision.
Figure 1.1: Brand Awareness, Perceived Quality, and Brand Association
Influence on Purchase Decision
(Source: Framework created by researcher)
This research will prove relationship between brand awareness, brand association,
and perceived qualities to customer purchasing decision and how strong the
relationship is.
Brand
Awareness
Perceived
Quality
Brand
Association
Purchase
Decision
X1
X2
X3
Y
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1.8 Scope and Limitations of the Study
This research was conducted at President University which focuses on President
University extension students with sample taken only from batch 2012. Because
of the limitation of time and budget, therefore sample for this research is
considered small. This research based theory also mainly use David Aaker theory
of brand equity and purchase decision theory of Philip Kotler which represents
customer study decision variable. This research only focus on 3 elements in David
Aaker theory of brand equity which are: brand awareness, perceived quality, and
brand association.
The sample of 2012 may not represent the whole batch point of view about their
brand perception of President University brand and their purchasing decision.
Therefore extensive possibilities are still open wide to explore.
1.9 Hypothesis
Hypothesis is tentative explanation (theory) that is provisionally accepted in order
to interpret certain events or phenomena, and to provide guidance for further
investigation. A hypothesis may be proven correct or wrong, and must be capable
of refutation. If it remains unrefuted by facts, it is said to be verified or
corroborated. In this research, the hypothesis that researcher intend to test are:
H1 : Brand awareness (X1) has significant influence towards purchase decision
(Y)
H2 : Perceived quality (X2) has significant influence towards purchase decision
(Y)
H3 : Brand association (X3) has significant influence towards purchase decision
(Y)
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1.10 Definition of Terms
1. Brand Equity : Brand equity can be defined as (1) Loyalty (brand’s real or
potential price premium), (2) loyalty (customer satisfaction based), (3)
perceived comparative quality, (4) perceived brand leadership, (5)
perceived brand value (brand’s functional benefits), (6) brand
personality, (7) consumers perception of organization (trusted, admired
or credible), (8) perceived differentiation to competing brands, (9) brand
awareness (recognition & recall), (10) market position (market share),
prices and distribution coverage (Aaker, 2006).
2. Brand Awareness : The percentage of population or target market who are
aware of the existence of a given brand or company. There are two types
of awareness: spontaneous, which measures the percentage of people who
spontaneously mention a particular brand when asked to name brands in a
certain category; and prompted, which measures the percentage of people
who recognize a brand from a particular category when shown a list
(brandchannel.com).
3. Perceived quality : Perceived quality is the customer’s judgment about a
product’s overall excellence or superiority that may different from
objective quality (Zeithaml, 1988).
4. Brand Association : Brand association is the customers’ impression
regarding a certain brand. These impression may come as the effect of
many factors such as advertising, experience, or suggestion from
colleagues (Aaker,2006).
5. Purchasing Decision : Strong confidence in customers mind that the
decision which taken on purchases were right (Aaker, 2006).
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1.11 Systematic Writings
This research will be written in systematic manners which consist five chapters:
CHAPTER I INTRODUCTION
This chapter will discuss about background of the study, company
profile, problems identification, problems statement, research
objectives, significance of the study, theoretical framework, scope
and limitation of the study, hypothesis, definition of terms, and
systematic writings.
CHAPTER II LITERATURE REVIEW
In chapter two this research would be focused on literature
review, traversing the theory of brand, brand equity, brand
awareness, perceived quality, brand association, and purchase
decision theory.
CHAPTER III METHODOLOGY
Chapter three will discuss the research methodology, research
time and place, research design, research instrument, sampling
design, data analysis and hypothesis test.
CHAPTER IV ANALYSIS OF DATA AND INTERPRETATION OF
RESULTS
Chapter four will discuss the characteristic of respondents,
descriptive analysis, validity and reliability test, model evaluation,
regression model, and hypothesis test.
CHAPTER V CONCLUSIONS AND RECOMMENDATIONS
Chapter five will discuss the conclusion and recommendation
from the researcher.
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CHAPTER II
LITERATURE REVIEW
2.1 Brand
A brand is a name, term, sign, symbol, design or a combination of these, which is
used to identify the goods or services of one seller or group of sellers and to
differentiate them from those of competitors (American Marketing Association,
2011).
According to David Aaker (2006), “Brand is a differentiate name and symbol
(logo, tag line, trade mark, etc.) intended to identify the goods or services of either
one seller or a group of seller, and liabilities linked to a brand, its name and
symbol, that add to or subtract from the value provided by a product or service to
a firm and/or to that firms customer.”
Brand is a full set of identities that differentiates one product from another. When
a consumer reminds of a brand usually he/she would remember things associated
with the product brand such its quality, durability, service therefore consumer
rarely just see a product or service; brand remarkably shape people view about a
product.
A brand conveys a specific set of features, benefits and services to buyers. It is a
mark, a tangible emblem, which says something about the product. The best
brands, for example, often convey a warranty of quality. According Kotler and
Armstrong (2010), a brand can deliver up to four levels of meaning:
1. Attributes
A brand first brings to mind certain product attributes. For example,
Mercedes suggests such attributes as 'well engineered', 'well built',
'durable', 'high prestige', 'fast', 'expensive' and 'high resale value'.
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The company may use one or more of these attributes in its advertising for
the car.
For years, Mercedes advertised 'Engineered like no other car in the world'.
This provided a positioning platform for other attributes of the car.
2. Benefits
Customers do not buy attributes, they buy benefits. Therefore, attributes
must be translated into functional and emotional benefits. For example,
the attribute 'durable' could translate into the functional benefit, 'I won't
have to buy a new car every few years.' The attribute 'expensive' might
translate into the emotional benefit, 'The car makes me feel important and
admired.' The attribute 'well built' might translate into the functional and
emotional benefit, that I am safe in the event of an accident'.
3. Values
A brand also says something about the buyers' values. Thus Mercedes
buyers value high performance, safety and prestige. A brand marketer
must identify the specific groups of car buyers whose values coincide
with the delivered benefit package.
4. Personality
A brand also projects a personality. Motivation researchers sometimes
ask, 'If this brand were a person, what kind of person would it be?
Consumers might visualize a Mercedes automobile as being a wealthy,
middle-aged business executive. The brand will attract people whose
actual or desired self-images match the brand's image. A brand must
deliver a promise, brand marketing is said to be a promise, which actually
exists in the minds of consumers. Brand as one of the decisions of
individual products that provide benefits to consumers and producers
(sellers) due to the brand can help consumers to identify certain products
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which in turn will help the buying process. The stronger the difference
and distinction of a brand is the stronger brand preference of consumers.
2.2 Brand Equity
Brand Equity is the differential effect that knowing the brand name has on
customer response to the product and its marketing. It’s a measure of the brand
ability to capture consumer preference and loyalty (Kotler and Armstrong, 2010).
Knapp (2001) define brand equity as a brand valuation based on the totality of
perceptions, including the relative quality of products and services, financial
performance, customer loyalty, satisfaction, awards, and so forth. Through the
brand with strong brand equity, companies can gain control of the market by
developing a competitive and sustainable brand. The power of strong brands can
be seen from at least brand equity.
Based on definitions above it may be concluded that brand equity is a brand
identity with a set of value that differentiate one from another. A brand
encompasses the name, logo, image, and perceptions that identify a product,
service, or provider in the minds of consumer. A brand has positive brand equity
when customers react more favorably to it than to a generic or unbranded version
of the same product. It has negative brand equity if consumers react less favorably
than to unbranded version.
Brand equity approach used in this study is a customer-based brand equity
approach. Customer based approach brand equity will look from the consumer
angle. Base thinking customer-based brand equity models revealed that strength of
a brand lies in what customers seen, read, heard, learn, think, and feel about the
brand for this consumer (Kotler and Keller, 2012).
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Figure 2.1: Brand Equity Model
Source: Adapted from Aaker, 2006
Brand equity can be grouped into five categories (Aaker, 2006), which are:
1. Brand Awareness
Indicates the ability of a potential buyer to recognize or recall that a brand is
part of a particular product category.
Perceived Quality
BRAND
EQUITY
Brand Awareness
Brand Loyalty
Brand
Association
Other
Proprietary
Brand Assets
Provide value to customer by
enhancing customer’s :
1. Intepretation/procession
of information
2. Confidence in the
purchase decision
3. Use Satisfaction
Provide value to Firm by enhancing:
1. Efficiency and effectiveness of
Marketing Programs
2. Brand Loyalty
3. Prices/Margins
4. Brand Extensions
5. Trade Leverage
6. Competitive Advantage
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2. Brand Associations
Reflects the image of a brand of a particular impression in relation to the
habits, lifestyles, benefit, product attributes, geographic, price, competitors,
celebrities and others.
3. Perceived Quality
Reflecting the overall customer perception of quality / excellence of a product
or service with respect to the expected mean.
4. Brand Loyalty
Reflects the level of consumer engagement with a brand product.
5. Other proprietary brand assets.
2.3 Brand Awareness
Brand awareness is a factor that builds the brand, the first step for customers to
build a connection for a certain brand. Simply, if a potential customer is not aware
of the brand and the company, the consumer will not purchase the product.
Familiarity and recognition creates a foundation of trust, and to establish
additional trust in the consumer segment, it is vital that the credibility at least
exceeds the expectations of the consumers.
Brand awareness refers to whether consumers can recall or recognize a brand, or
simply whether or not consumers know about a brand (Keller, 2008). Brand
awareness precedes building brand equity. The brand name provides the memory
nodes in consumers' minds (Aaker, 2006).
Consumers may link the related brand knowledge to the brand name, which
finally constitutes brand equity. Hence, brand awareness provides a kind of
learning advantage for the brand.
16
Brand awareness affects consumer decision-making. Brands that consumers know
are more likely to be included in the consumers' consideration set. Consumers
may use brand awareness as a purchase decision determining factor. Therefore,
brand awareness increases brand market performance.
According to David A. Aaker (2006) measurement of brand awareness is based on
notions of brand awareness that includes the brand level, which is top of mind, an
increase in re-brand (brand recall), and the introduction of brand (brand
recognition), and not aware of the brand (unware of Brand).
Figure 2.2: Measurement of Brand Awareness
Source: Adapted from Aaker, 2006
Top of Mind;
Brand which first appeared in the minds of consumers when consumers were
asked about a product category that can be recalled spontaneously, without any
assistance. In other words, the brand is the major brands of different brands that
exist in the minds of consumers.
Unaware of Brand
Brand Recognition
Brand Recall
Top of Mind
17
Brand Recall;
Recall of the brand without the help of hint or information (Unaided Recall).
Brand Recognition;
Minimal level of brand awareness, where the introduction of an emerging brand
again after the recall through the aid of hint or information (Aided Recall).
Unaware of Brand.
This level is the lowest level in the pyramid of brands, where consumers are not
aware of a brand.
2.4 Perceived Quality
Perceived quality speaks for the quality perception quality of a product from a
consumer point of view which may already exposed by another information
regarding the product quality therefore sometimes the perceived quality is not
always the same as actual quality. David Aaker (2006) mentioned at least there
are four reasons regarding this situation:
1. Consumer may be overly influenced by a previous image of poor quality.
Because of this, they may not believe new claims, or they may not be
willing to take the time to verify them.
2. A company may be achieving quality on a dimension that consumers do
not consider important.
3. Consumers rarely have all the information necessary to make a rational and
objective judgment on quality and even if they do have the information,
they may lack the time and motivation to process it.
4. Because consumers may not know how to judge quality, they may be
looking at the wrong cues.
18
A perception of a quality will have a direct impact to the potential buyer, as for
example if a customer form a perception that hand phones from brand A are good,
it would form a higher possibilities for a customers to bought a product from a
certain brand. In general, the impression of quality to produce the following
values (Aaker, 2006):
1. Reasons to Buy
Limitations of information, money, and time to make one's purchase
decision is influenced by the quality of a brand impression in the minds of
consumers, so often the reason a buying decision based only on the
impression of quality (perceive quality) of the brand to be bought.
2. Differentiation / Positioning
One of the most important characteristics of the product brand is its
position in the dimensions of the impression of quality.
3. Price Premium
One of the advantages of giving the impression of quality is the choice of
space in determining premium rates. Price premium can increase the profit
that can directly improve profitability.
4. Interest in Distribution Channels
Retailers and distributors will be motivated to deliver high-quality brands.
This provides an advantage for the expansion of the distribution of these
brands and can also enhance the image of a channel distributor of brands
that have a high quality impression.
5. Expansion of Trademark
Impression of the brand with high quality can be used to introduce new
product categories and have a greater chance of success than the weak
brand. In this case the impression of quality is a significant guarantee for
brand extensions.
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2.5 Brand Association
Brand associations are playing an important role in successful branding.
According to Aaker (2006), they “represent bases for (customer’s) purchase
decisions and for (customer’s) brand loyalty” through numbers of possible ways:
brand associations can influence customer’s interpretation of the product or
service and helping customers to create good attitudes or feelings toward it. The
way they do this is to help customers to process or retrieve relevant positive
information, as a result they can create a specific reason for customer to buy and
use the brand. This can lead to an increase in customer’s brand loyalty and to
provide a basis for brand extensions by transferring the brand name into a
new product or service. According to Keller (2003) brand association is consist
of various types which could categorize in three, which are:
1. Attribute
Attribute describes about a characteristic of a product or service in the time of
purchasing or consumption. Attributes can be distinguished according to how
directly they relate to product or service performance. Along these lines,
attributes can be classified into product-related and non-product-related
attributes.
a. Product Related
Product-related attributes are defined as the ingredients necessary for
performing the primary product or service function sought by consumers.
Hence, they relate to a product’s physical composition or a service’s
requirements.
Product-related attributes determine the nature and level of product
performance. Product-related attributes can be further distinguished
according to essential ingredients and optional features, either necessary for
a product to work or allowing for customization and more versatile,
personalized usage.
20
b. Non Product Related
Non product related attributes are defined as external aspects of the product
or service that relate to its purchase or consumption. Non-product-related
attributes may affect the purchase or consumption processes but do not
directly affect the product performance. The examples of non-product-
related attributes are price information, packaging or product appearance
information, country of origin, and user imagery.
2. Benefits
Benefits are the personal value and meaning that consumers attach to the
product or service.
a. Functional Benefit
Functional Benefit is the benefit which may obtain directly with product
performance.
b. Experiential Benefit
Experiential benefits relate to what is felt when the product or service is
used and usually also correspond to both product-related attributes as well
as non-product-related attributes such as usage imagery.
c. Symbolic Benefit
They usually correspond to non-product-related attributes and relate to
underlying needs for social approval or personal expression. Symbolic
benefits are especially relevant for socially visible products.
Thus, consumers may value the prestige, exclusivity, or fashion ability of a
brand because of how it relates to their self-concepts.
21
3. Attitude
Brand attitudes are defined in terms of consumers’ overall evaluations of a
brand. Brand attitudes are important because they often form the basis for
actions and behavior that consumers take with the brand. Consumers’ brand
attitudes generally depend on specific considerations concerning the attributes
and benefits of the brand. It is important to note that brand attitudes can be
formed on the basis of benefits about product-related attributes and
functional benefits and/or beliefs about non-product-related attributes,
symbolic and experiential benefits.
Collection of existing associations will form a brand image, then the image will
form associations and perceptions that can describe the state of the brand or
otherwise, do not reflect actual brand. Furthermore, brand association and
image will be associated with the brand positioning. According to Aaker
(2006) brand association can be a plus:
a. Help the process or return information, the association may be a summary
of the facts and specifications for the consumer in mind.
b. Differentiation, the association became an important basis for
differentiation by forming a unique and distinctive associations which can
be a key of competitive advantage.
c. Reason to buy, the association or the product attributes is often become the
reason for consumers to buy the product. Creating positive attitudes or
feelings, some associations to be a very desirable and stimulate a positive
attitude which is then transferred to the brand. The basis for the extension,
the association could also be the basis to extend or add a new product,
which is by creating a sense of fit and comfort of a brand name with the
new product.
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2.6 Purchase Decision
Kotler and Armstrong (2010) states that the decision to buy is taken by the buyer
is actually a collection of a number of decisions. Consumer purchasing decisions
are influenced by consumer behavior. Consumer behavior is the actions directly
involved in obtaining, consuming, and spent products and services, including the
decision process. Preceding and following on these measures (Engel et al, 2001).
Peter and Olson (2005) argue that the core of the consumer decision-making is a
process that integrates knowledge to evaluate the behavior of two or more
alternatives, and choose one of them.
Ideally, a brand can benefit from a pre-existing relationship between a set attitudes
and values and a particular product, resulting in more sales, but, when that is not
possible, the heavy lifting of creating that connection, or shifting attitudes and
beliefs becomes necessary. What is critical is to understand those values, attitudes
and beliefs.
Kotler (2007) revealed that a person may have a different role in any purchasing
decision. Various roles that may occur are as follows:
1. Decision initiative (initiator), the person who first suggested or thought of
the idea of buying a particular product or service.
2. People who affect (influence), those whose views or advice taken into
account in making a final decision.
3. Decision makers (decider), i.e, one that will determine the decision on which
product to buy, how to pay, where to make a purchase.
4. The buyer (buyer), that a person who makes a purchase.
5. User (user), the person or persons who enjoy or use the product or service.
23
According to Kotler and Armstrong (2010), there are five stages of consumer
buying behavior which are :
Figure 2.3: Consumer Decision Process
Source: Kotler and Armstrong (2010)
Need Recognition
The buying process starts with need recognition - the buyer recognizing a
problem or need. The buyer senses a difference between his or her actual
state and some desired state. The need can be triggered by internal stimuli
when one of the person's normal needs - hunger, thirst, sex - rises to a level high
enough to become a drive. From previous experience, the person has learned
how to cope with this drive and is motivated towards objects that he or she knows
will satisfy it.
Information Search
An aroused consumer may or may not search for more information. If the
consumer's drive is strong and a satisfying product is near at hand, the consumer
is likely to buy it then. If not, the consumer may simply store the need in memory
or undertake an information search related to the need.
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Evaluation of Alternatives
In conducting the purchasing decision, each consumer will try to find satisfaction.
Thus, in evaluating alternative information obtained from the search results, the
consumer will put more attention to products that can deliver benefits sought or
expected by consumers.
Purchase Decision
In this step customer is ready to take an action towards a product, strong
confidence in customer is the determining factors that he had taken the decision
on the purchase is correct (Aaker, 2006) which has the following indicators:
1. Steadiness to buy.
2. Considerations in buying.
3. Suitability attributes with the wishes and needs.
Post Purchase Behavior
After buying a product, consumers will be able to sense of whether the purchased
product is satisfactory or not. Consumers will consider whether there would be
enough until he associated with a brand that has been purchased (if not satisfied)
or whether to make a purchase again when he takes the same product.
2.7 Previous Research
The construct in this research is nevertheless refered to the previous research
about brand, which are:
1. Muhammad Shahbaz Shabbir, Shabana Kirmani, Javed Iqbal, and Bashir
Khan conducted research in 2009 entitled “Country of Origin and Brand
Names Affect on Consumer Behavior and Purchase Intention in Pakistan”.
The study focuses on the relationship between attitude and purchase
intention with respect to brand name and country of origin. Though
both indicators-attitude towards brand name and purchase intention
found to favorable for brand NOKIA and country Hungary, yet there
25
is very minor difference as compared to the other brand and country
selected in the study. This shows that customers-master level students do
not pay much attention towards the competing brand specifically on the
basis of country of origin.
2. In 2004, Bongran Jin Sun conducted research entitled “Brand Equity,
Perceived Value and Revisit Intention in the US Mid Priced Hotel
Segment”. Independent variables used are the elements of brand equity,
which consists of brand awareness, brand perception, brand association,
and brand loyalty, while the dependent variable is the customer perceived
value and revisit intentions. From the results of the research, it can be
concluded that brand loyalty and perceived quality were positively related
to perceived value, brand awareness and brand association were not
significantly related to perceived value. In revisit intention, only brand
loyalty affected revisit intention, whereas other dimensions were not
related to revisit intention. However, perceived quality had indirectly
effect on revisit intention via perceived value. Perceived value influenced
revisit intention. When compared each hotels brand equity dimensions,
brand loyalty and perceived quality were significant different, yet brand
awareness and brand association were not different among other hotels.
3. In 2011, Hendra Jonathan Sibarani conducted research entitled “The
Influence of Brand Equity Towards Purchase Decision of Telkomsel Flash
Products at Grapari Selecta Medan”. The purpose of this study was to
analyze whether brand loyalty, brand association, and brand awareness
influenced Telkomsel Flash purchase decision and whether the trust of the
brand, product quality, and price optimum has effect on brand loyalty of
Telkomsel Flash products at Grapari Selecta Medan. Regression results
show that brand loyalty variable, brand association, brand awareness
significantly influenced the purchase decision of Telkomsel Flash products
in Grapari Selecta Medan.
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CHAPTER III
METHODOLOGY
3.1 Research Method
There are two approaches in doing scientific research, qualitative research is an
unstructured, primarily exploratory design based on small samples, intended to
provide insight and understanding. Qualitative analysis is a method that is
purposed to explore the richness, depth, and complexity of the phenomena.
Qualitative research is defined as “any kind of research that produces findings not
arrived at by means of statistical procedures or other mean of quantification”
(Strauss and Corbin, 1990).
Quantitative research is a research techniques that seek to quantify data and,
typically, apply some form of statistical analysis. Quantitative analysis is trying to
measure how many people feel, think or act in a particular way.
Therefore in this research, quantitative research is more suitable because the
purpose of the research is to analyze the effect of brand awareness, perceived
quality, and brand association to the study / purchase decision.
3.2 Research Time and Place
This research was conducted in October 2012 at President University, it is an
international university, which is located at Jl. Ki Hadjar Dewantara, Jababeka,
Cikarang Baru, Bekasi, Indonesia.
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3.3 Research Design
Research design is considered as a "blueprint" for research, dealing with at least
four problems: which questions to study, which data are relevant, what data to
collect, and how to analyze the results.
According to Malhtora and Birks (2007), research design is classified into two,
exploratory and conclusive research.
Figure 3.1: Research Design
Source: Malhtora and Birks (2007)
The primary objective of exploratory research is to provide insights into and an
understanding of marketing phenomena. It is used in instances where the subject
of the study cannot be measured in a quantitative manner or where the process of
measurement cannot realistically represent particular qualities. For example, if a
researcher was trying to understand what ‘atmosphere’ meant in a restaurant,
exploratory research may help to establish all the appropriate variables and how
they connected together (Malhotra and Birks, 2007).
28
Exploratory research is more to provide understanding, the research process is
flexible and unstructured, the sample is small and non-representative, and the
analysis of primary data is qualitative.
Conclusive research is research conducted more to test specific hypotheses and
examine relationship and to measure a number of people in a particular way of
thinking. Research process is formal and structured; sample is large and aims to be
representative.
This research will use conclusive research, with descriptive approach and cross-
sectional design. Descriptive research is aim to describes market characteristics or
functions. A major difference between exploratory and descriptive research is
that descriptive research is characterized by the prior formulation of specific
research questions and hypotheses. Thus, the information needed is clearly
defined. As a result, descriptive research is preplanned and structured.
Cross-sectional designs involve the collection of information from any given
sample of population elements only once. In longitudinal designs, a fixed sample
(or samples) of population elements is measured repeatedly. In other words, the
same people are studied over time.
3.3.1 Variable of the Study
The independent variable is a variable that affects or is the cause of the onset of
the change in the dependent variable, in this study the independent variables are:
brand awareness (X1), perceived quality (X2), and brand association (X3) while
the dependent variable is purchase decision (Y).
29
3.3.2 Type of Data
3.3.2.1 Primary Data
Primary data are originated by the researcher for the specific problem under study
such as study data obtained by questionnaires. The primary data of this study is
obtained from questionnaire answered by President University extension class
Student’s from batch 2012 regardless of their major, age, or gender.
3.3.2.2 Secondary Data
Secondary data are collection of data which origin from other resources such as
journal, bureau of statistics, or the internet. The secondary data resources in this
study are collected from journal, books, and articles.
3.4 Research Instrument
3.4.1 Questionnaire
A questionnaire is a research instrument who was introduced by Francis Galton,
which consisting of a series of questions and other prompts for the purpose of
gathering information from respondents.
In this research survey techniques are based upon the use of structured
questionnaires given to a sample of a population. In structured data collection, a
formal questionnaire is prepared and the questions are asked in a prearranged
order; thus, the process is also direct. Whether research is classified as direct or
indirect is based on whether the true purpose is known to the respondents
(Malhtora and Peterson, 2007). The listed indicators to measure the brand
variables are listed in the table as follows:
30
Table. 3.1: List of indicators
No. Description Scale
Brand Awareness
1 I can quickly remember logo or symbol of President University. Likert
2 Whenever I’m asked about private university I remember President University quickly.
Likert
3 President University is well known. Likert
4 I remember one of President University commercials in the media. Likert
Perceived Quality
1 President University facilities are adequate for my study needs. Likert
2 Lecturers at President University are always give their best performance.
Likert
3 Staffs at President University are always have a good intention to help me.
Likert
4 President University staffs are consistently courteous with me. Likert
5 President University has a better quality compared to other private University.
Likert
Brand Association
1 President University is an international standard university. Likert
2 President University is an English speaking university. Likert
3 In my opinion President University is a prestigious university. Likert
4 In my opinion President University offer the best quality at the best price.
Likert
Purchase Decision
1 I am certain choosing President University as my first choice when I decide to college.
Likert
2 Another private university becomes less in consideration when I decide to study in President University.
Likert
3 I choose President University because it fits with my education needs. Likert
4 I am certain that I have taken a right decision to study at President University.
Likert
(Source: Conducted by Researcher)
3.4.2 Likert Scale
Rensis Likert (5 August 1903–3 September 1981) was an American educator and
organizational psychologist best known for his research on management styles.
One of his most popular inventions is the Likert Scale.
31
Likert Scale is a type of psychometric scale frequently used in psychology
questionnaires to measure respondents’ behavior towards the indicator of certain
subject. The method applied in this research is the survey method by using
questionnaire which used to collect the primary data. The questionnaire would be
using Likert Scale. On a survey or questionnaire, a typical Likert item usually
takes the following format:
1. Strongly disagree
2. Disagree
3. Neither agree nor disagree
4. Agree
5. Strongly agree
3.4.3 Validity
Worthen et al (1993) define validity as a stages where measurement has achieve
its goal where those measurement is used. Validity shows how much the
measurement tools capable to perform its function precisely as the researcher
expected. A measurement scale is valid the measurement do the exact thing it
should do and measure thing should be measured. If the measurement scale is not
valid then it is useless for the researcher.
32
Validity testing conducted to determine the level of validity of an instrument
measurement, the higher the level, and the more validity to show what should be
measured. The test in this research is performed with the 20 samples the
respondents outside the main sample respondents. Validity test is done by
comparing the value of r count with r table. If the value is greater than r table, the
instrument is said to be valid.
Table. 3.2: Validity Test
No. Indicator r count r table Remarks
1 Brand Awareness
- indicator 1 .466 .433 valid
- indicator 2 .483 .433 valid
- indicator 3 .463 .433 valid
- indicator 4 .468 .433 valid
2 Perceived Quality
- indicator 1 .814 .433 valid
- indicator 2 .635 .433 valid
- indicator 3 .789 .433 valid
- indicator 4 .708 .433 valid
- indicator 5 .724 .433 valid
33
(Source: Primary data processed with SPSS 17 )
From the data gathered for the pre-questioner it shows that each indicator shows
that the value of r count is above the r table which is 0.433. Therefore the
indicators are considered as valid.
3.4.4 Reliability
According to Mehrens and Lehman (1987), reliability is a consistency level
between two measurements to a same subject. Reliability may considered as a
stability of measurement value every time a measurement is applied to the same
subject, therefore reliability is mainly focus in accuracy and its results.
3
Brand Association
- indicator 1 .767 .433 valid
- indicator 2 .891 .433 valid
- indicator 3 .534 .433 valid
- indicator 4 .642 .433 valid
4 Purchase Decision
- indicator 1 .715 .433 valid
- indicator 2 .574 .433 valid
- indicator 3 .752 .433 valid
- Indicator 4 .562 .433 valid
34
A questionnaire considered as reliable if someone answers to questions are
consistent or stable over time. Testing reliability of the instrument in this study
conducted and analyzed by the technique Cronbach Alpha (α). A variable is said
to be reliable if the work for entire variable has a value above 0.60 or Cronbach
Alpha > 0.60 (Ghozali, 2005).
Table. 3.3: Reliability Test
(Source: Primary data processed with SPSS 17 )
From the data gathered for the pre-questioner it shows that each indicator shows
that the value of Cronbach Alpha is above the 0.60. Therefore the indicators are
considered as reliable.
3.4.5 Classic Assumption Test
3.4.5.1 Normality Test
A good regression model can be determined by using the graphical histogram,
which can be seen when the data have a normal distribution. According to Santoso
(2012) if the data distributed towards a bell form curve the regression model may
considered as normal.
No. Indicator Cronbach
Alpha
Remarks
1 Brand Awareness .683 Reliable
2 Perceived Quality .888 Reliable
3 Brand Association .856 Reliable
4 Purchase Decision .817 Reliable
35
Another way is to look at the spread of the data (dots) on an axis diagonal of the
graph normal probability plots (PP plots). Normality plot is a plot of observation
data which put in order based on the sample against percentage dots correlate
from standard distribution. If the data spread around the diagonal line and follow
the direction of the diagonal line, the regression model meet the assumptions of
normality (Sarwono, 2012).
3.4.5.2 Multicollinearity Test
Multicollinearity test is done by looking at the value of the variance inflation
factor (VIF). This test aims to test whether the regression model found a
correlation between the independent variables (Ghozali, 2005). Multicollinearity
test does it to see the value of tolerance and the value of inflation factor (VIF). On
the basis of the criteria, all VIF values should be around 1 and less than 5.0, while
tolerance value should be towards 1 (Santoso, 2012).
3.4.5.3 Heteroscedasticity Test
Heteroscedasticity test aims to test whether the regression model variance of the
residual inequality occurs one other observation to observation (Ghozali, 2005). If
the residual variance from one observation to observation others are still, it is
called homoscedasticity, and if different is called heteroscedasticity (Sarwono,
2012). Regression model is claimed to be feasible if the model is free of
heteroscedasticity. In this study, researchers used a scatterplot chart to test the
heteroscedasticity.
36
3.5 Sampling Design
The data were collected based on probability, random stratified sample where in
order to describe heterogen population, the population is categorized into an equal
category (strata) where from each strata sample is taken randomly (Neuman,
1994).
The population of this research sample is the students of President University
extension class from batch 2012 with the total 329 students.
Umar (2005) stated that in order to determine the minimum sample required if the
population size is known, it can be used Slovin formula as follows:
21 ( )
Nn
N e
2
329
1 329(10%)n
76.68n
Where :
n = Sample size
N = Population size
e = Margin of errors desired
Slovin formula for 10% margin of error for 329 students has resulted in 77
students as the minimum requirement for the samples. This research will take 110
respondents as the main sample which exceeds the minimum requirement
samples.
37
3.6 Data Analysis
3.6.1 Multiple Regression Analysis
Regression analysis is basically the study of the dependence of the dependent
variable (tied) with one or more independent variables (free) in order to estimate
and / or predict the population mean or average value of the dependent variable
based on the value of the independent variable unknown (Santoso, 2012).
Regression analysis aim to measuring the strength of the relationship between two
or more variables, in addition regression analysis also shows the relationship
direction between the dependent variable with the independent variable. For
regression model which have independent variable consisting of two or more, is
called multiple regression.
Multiple regression analysis in this study aims to determine the influence of the
independent variable which are: brand awareness, perceived quality, and brand
association on the dependent variable which is purchase decision. The general
form of a multiple regression equation used in this study is as follows:
0 1 1 2 2 3 3Y B B X B X B X e
Where :
Y = Purchase decision
X1 = Brand awareness
X2 = Perceived quality
X3 = Brand association
B1, B2, B3… = The regression coefficients of each variable
B0 = Constanta
e = error
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3.7 Hypothesis Test
3.7.1 Coefficient of Determination (R2)
According to Sarwono (2012), Correlation (R) is used to describe the correlation
between the dependent variable and the independent variable. The strength of
correlation is categorized based on these criteria:
0 : No correlation between variables.
>0 - 0.25 : The correlations between the variables are weak.
>0.25 - 0.5 : The correlations between the variables are medium.
>0.5 - 0.75 : The correlations between the variables are strong.
>0.75 - 0.99 : The correlations between the variables are very strong.
R square (R2) is used to measure how far the model's ability to explain variation in
the dependent variable (Ghozali, 2005). R2 with the value closer to 1, meaning the
independent variables provide almost all the information needed to predict the
variation in the independent variable.
3.7.2 F-Test (Simultan)
F statistic test shows whether all the independent variables included in the model
have an influence together on the dependent variable (Ghozali, 2005). This test is
done by comparing the value of F calculated with the value of F table using a
significant level of 5%. If the count value of F is greater than F table then
simultaneously all the independent variables affect the dependent variable. In
addition, the value of probability is also reviewable. If the probability value of less
than 0.05 (for a significance level = 5%), the independent variables
simultaneously influence the dependent variable. Meanwhile, if the probability is
greater than 0.05 then the independent variables simultaneously has no effect on
the dependent variable.
39
3.7.3 T-Test (Partial)
This test shows how much influence the individual independent variables in
explaining the dependent variable (Ghozali, 2005). The hypotheses used are:
Ho : b1 ,b2 ,b3 = 0, means that independent variable does not influence
dependent variable individually.
Ha : b1 ,b2 ,b3 > 0, means that independent variable influence dependent
variable individually.
T statistical test is conducted by comparing the t value with the value of t table
using a significance level of 5%. If the t value is greater than t table then
individually independent variables would affect the dependent variable. The test
can also be done by reviewing the value of probability. If the probability value is
less than 0.05 (for a significance level = 5%), then the individual independent
variables affect the dependent variable. Meanwhile, if the probability is greater
than 0.05 then the independent variables individually had no effect on the
dependent variable.
40
CHAPTER IV
ANALYSIS OF DATA AND INTERPRETATION OF RESULTS
4.1 Characteristics of Respondents
This research was conducted at President University and the students of extension
class as the sample. Total respondents are 110 students, the data was gathered
from 12th to 30th November 2012.
The respondents are only the students from batch 2012 at President University
extension class with the classifications of gender and major.
4.1.1 Gender
Figure 4.1: Gender Distribution
(Source: Primary data gathered by Researcher)
In gender section most of respondents is led by the male with distribution of data
59 % while female is 41% of total respondent. However data distribution in
gender is also almost equally distributed with 9% difference between female
respondent and 59% male respondent.
41
4.1.2 Major
Figure 4.2: Major Distribution
(Source: Primary data gathered by Researcher)
Based on the figure above the distribution of respondents are almost equally
distributed with the highest population is 27 % taken from information system
then 23% taken from accounting, 21% taken from management, 15% taken from
industrial engineering, and the smallest sample are from public relation,
representing 14% from total respondent.
The processes of data gathering were mostly done by giving the questionnaire
directly to the respondents. Researcher comes directly to the respondent during
the class time by making appointment with the lecturers, therefore each of
respondents have an adequate time to fulfill each questioner indicator.
The data were collected based on probability, random stratified sample where
researcher is collecting the data randomly from each category (gender and major).
Therefore each category has their representative in the respondents’ population is
almost equally distributed.
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4.2 Respondent Distribution Descriptive Analysis
4.2.1 Brand Awareness
Figure 4.3: Brand Awareness
(Source: Primary data gathered by Researcher)
Based on figure above it can be concluded:
1. On the Indicator 1 (I can quickly remember logo or symbol of President
University), only 2% of respondents answered strongly disagree and 5%
disagree, with 9% neutral however most of respondent are aware of symbol
and logo of President University, it’s proven by 54% of respondents answered
agree and 31% of respondents answered strongly agree. In this indicator most
of respondents is able to recall the logo of President University, which
indicates that most of the students have good awareness to the brand.
2. On the indicator 2 (whenever I’m asked about private university I remember
President University quickly), 1% of respondents answered strongly disagree,
5% of respondents answered disagree, 8% of respondents answered neutral,
66% of respondents answered agree, and 20% of respondents answered
strongly agree.
43
David Aaker states that top of mind brand are the brand that can be recalled
spontaneously, without any assistance. Based on the result, 86% (66% agree
with 20% of strongly agree) of respondent are having President University as
their top of mind and have a good brand recall of President University.
3. On the indicator 3 (President University is well known), 1% of respondents
answered strongly disagree, 5% of respondents answered disagree, 33% of
respondents are neutral, 40% of respondents answered agree and 21% of
respondents answered strongly agree. The sum on positive answered in this
indicator is 61% which indicates that most of respondents view President
University as a well-known, popular University. However in the neutral fronts
33% of respondents are still felt vague about the popularity of President
University.
4. On the indicator 4 (I remember one of President University commercials in the
media), 6% of respondents answered strongly disagree, 29% of respondents
answered disagree, 35% of respondents are neutral, 25% of respondents
answered agree and 5% of respondents answered strongly agree. This result
concludes that respondent is still felling vague about commercial existence in
the media. This may occur because President University may put commercial
in the media where most of the respondent not aware of (or rarely in contact
with).
Figure 4.3 portray the explanation of respondents’ view of brand awareness
variable. Based on the data most of the respondents answers agree to the brand
awareness indicators. Most of the students have a good brand recall of President
University however when it comes to the commercial, some students still feel
vague about President University commercial, which were shown by 35% neutral
and 29% disagree.
44
4.2.2 Perceived Quality
Figure 4.4: Perceived Quality
(Source: Primary data gathered by Researcher)
Based on figure above it can be concluded:
1. On the Indicator 1 (President University facilities are adequate for my study
needs), 5% of respondents answered strongly disagree and 17% disagree, 36%
neutral and 40% of respondents answered agrees; only 2% of respondents
answered strongly agree. In this indicator respondent answer are disperse, with
the sum of 42% in the agree or positive category, 36% in neutral category, and
22% in the disagree or negative category. Based on the result it may be
concluded that based on the dispersion of the answer respondent is have a
mixed feelings regarding the facilities in the President University.
2. On the indicator 2 (Lecturers at President University are always give their best
performance) only 1% of respondents answered strongly disagree, and 12% of
respondents answered disagree, 28% of respondents answered neutral, 55% of
respondents answered agree and 4% of respondents answered strongly agree.
45
Based on the indicator result with 59% in the agree category, respondent sees
the lecturers in President University as professional.
3. On the indicator 3 (Staffs at President University are always have a good
intention to help me), 2% of respondents answered strongly disagree, 10% of
respondents answered disagree, 41% of respondents are neutral, 46% of
respondents answered agree and 1% of respondents answered strongly agree.
Most of the respondent in this indicator is still dispersed between positive
category (agree and strongly agree) with the total 47% and neutral with 41%
while in the negative (disagree and strongly disagree) category is relatively
small with the sum of 12%. This indicator shows that even though the positive
category leads with slight percentage, lot of respondents are still having mixed
feelings regarding President University quality.
4. On the indicator 4 (President University staffs are consistently courteous with
me), 1% of respondents answered strongly disagree, 5% of respondents
answered disagree, 30% of respondents are neutral, 58% of respondents
answered agree and 6% of respondents answered strongly agree. With 64% in
the agree category, respondent sees hospitality value in President University
staffs.
5. On the indicator 5 (President University has a better quality compared to other
private university) none of the respondents answered strongly disagree, 5% of
respondents answered disagree, 32% of respondents are neutral, 55% of
respondents answered agree and 7% of respondents answered strongly agree.
In this indicator agree category are slightly leading with the total of 62%
however 32% are still feel confuse (neutral), and 5% on disagree with none in
strongly disagree. Even though respondents are mixed in the answered
distribution but none of respondents have a strong negative perception
regarding the quality of President University.
46
Based on figure 4.4 most of respondents distribution are on agree and neutral
category. The respondents have a mixed feeling about their perception of quality
in President University. Indicator four and five provides a unique insight by
providing a very low distribution on strongly disagree and disagree category, it
can be concluded that regarding to indicator four and five respondents still have a
mixed feelings but much less negative than other indicator in this variable with
sums only 5%.
4.2.3 Brand Association
Figure 4.5: Brand Association
(Source: Primary data gathered by Researcher)
Based on figure above it can be concluded:
1. On the Indicator 1 (President University is an international standard university),
2% of respondents answered strongly disagree and 0% disagree, 10% neutral
and 74% of respondents answered agree, with 15% of respondents answered
strongly agree.
47
Based on these result it may be concluded that international standard university
association are strongly associated with President University brand.
2. On the indicator 2 (President University is an English speaking university) only
1% of respondents answered strongly disagree with another 1% of respondents
answered disagree, 7% of respondents answered neutral, 78% of respondents
answered agree and 13% of respondents answered strongly agree. On this
indicator most of respondents agrees that President University is an English
speaking university.
3. On the indicator 3 (In my opinion President University is a prestigious
university), 1% of respondents answered strongly disagree, 4% of respondents
answered disagree, 14% of respondents are neutral, 66% of respondents
answered agree and 15% of respondents answered strongly agree. This
category show that with 81% in the agree category, respondent sees President
University is strongly associated as prestigious university.
4. On the indicator 4 (In my opinion President University offer the best quality at
the best price), 3% of respondents answered strongly disagree, 15% of
respondents answered disagree, 28% of respondents are neutral, 47% of
respondents answered agree and 7% of respondents answered strongly agree.
In this category respondents are still felling mixed about quality offered
compared to price in President University.
Based on figure 4.4 it can be concluded that most of the respondents have a strong
brand association in their mind which they can relate in their experience which are
proven from indicator 1, 2, and 3. In the indicator 4 apparently respondents still
have a mixed feeling about price and quality offered in President University.
48
4.2.4 Purchase Decision
Figure 4.6: Purchase Decision
(Source: Primary data gathered by Researcher)
Based on figure above it can be concluded:
1. On the Indicator 1 (I am certain choosing President University as my first
choice when I decide to college), 5% of respondents answered strongly
disagree and 14% disagree, 31% neutral and 43% of respondents answered
agree with 8% of respondents answered strongly agree. Based on this result
respondents still put President University as the second or third consideration
when they are choosing the place to continue their study, even though 51% of
the respondents agree that they put President University in the first place when
it comes to choosing university, half of the respondents still having a mixed
feelings as displayed by the distribution in this indicator.
2. On the indicator 2 (another private university becomes less in consideration
when I decide to study in President University) only 2% of respondents
answered strongly disagree, with another 9% of respondents answered
disagree, 32% of respondents answered neutral, 50% of respondents answered
49
agree and 7% of respondents answered strongly agree. In this indicator
respondent answer are dispersed even though the agree category still lead with
57% who agree that other universities are become less in consideration when
they decided to study in President University.
3. On the indicator 3 (I choose President University because it fits with my
education needs), 1% of respondents answered strongly disagree, 4% of
respondents answered disagree, 15% of respondents are neutral, 73% of
respondents answered agree and 8% of respondents answered strongly agree.
In this indicator most of the respondents (81%) are agree that they choose
President University because it fits with their education needs whether its
facilities, major availability, internships or as the English speaking university.
4. On the indicator 4 (I am certain that I have taken a right decision to study at
President University), 3% of respondents answered strongly disagree, 1% of
respondents answered disagree, 16% of respondents are neutral, 65% of
respondents answered agree and 15% of respondents answered strongly agree.
Most of respondents in this indicator (80%) are certain with their decision to
study in President University. This is a truly positive indicator for President
University with such high of faith from its students to bear them to their future,
it indicates respondents profound beliefs in President University.
Based on figure 4.6 it can be concluded that most of respondents distribution are
on neutral and agree category with the highest respond are on indicator 3 where
73% of the respondents agree that they choose President University because it fits
their education needs, which follows with indicator 4 where 65% of respondents
felt that they are certain with their decision to study in President University.
50
4.3 Model Evaluation
4.3.1 Normality Test
Figure 4.7: Histogram
(Source: Primary data processed with SPSS 17 )
Graphical histogram is used to determined regression model. According to
Santoso (2012) to fulfill the requirements of normality in histogram analysis, the
data should distribute towards a bell form.
Based on Figure 4.7 the data is distributed in a shape of a bell which is shown by
the curve. Therefore based on graphical histogram normality test this model has a
normal distribution.
51
Figure 4.8: Normal Probability Plot
(Source : Primary data processed with SPSS 17)
Normality plot is a plot of observation data which put in order based on the
sample against percentage dots correlate from standard distribution. If the data
spread around the diagonal line and follow the direction of the diagonal line, the
regression model meets the assumptions of normality (Sarwono, 2012). Figure
4.8 shows that the data is spread around the diagonal line and follow along the
diagonal line, therefore based on normal probability plot the data is normally
distributed.
52
4.3.2 Multicollinearity Test
Multicollinearity test is done by looking at the value of the variance inflation
factor (VIF). This test aims to test whether the regression model found a
correlation between the independent variables. Multicollinearity test does it to see
the value of tolerance and the value of inflation factor (VIF). On the basis of the
criteria, all VIF values should be around 1 and less than 5.0, while tolerance value
should be towards 1 (Santoso, 2012).
Table 4.1: Multicollinearity Test
(Source: Primary data processed with SPSS 17 )
Based on the table 4.3 each item has a VIF (variance inflation factor) and
tolerance level is close to 1 and VIF values are under 5.0 and existing around 1
which fulfill the requirements of multicollinearity test. Thereby it can be
concluded that this model of regression has no multicollinearity problem.
Coefficientsa
Model
Collinearity Statistics
Tolerance VIF
1 BAW .959 1.043
PQ .739 1.354
BASS .763 1.311
a. Dependent Variable: PURCDESC
53
4.3.3 Heteroscedasticity Test
Heteroscedasticity test aims to test whether the regression model variance of the
residual inequality occur one other observation to observation (Ghozali, 2005). If
the residual variance from one observation to observation others are still, it is
called homoscedasticity, and if different is called heteroscedasticity (Sarwono,
2012). Regression model is claimed to be feasible if the model is free of
heteroscedasticity. In this study, researchers used a scatterplot chart to test the
heteroscedasticity.
Figure 4.9: Scatterplot
(Source: Primary data processed with SPSS 17 )
Based on the figure above the data was distributed randomly without any pattern
above and below 0 on Y axis. Therefore it may concluded that heterocedasticity
does not occurred in this model hence this regression model is eligible to be used
to predict decision based on the independent variables.
54
4.4 Regression Model
Multiple linear regression analysis used to determine the influence of independent
variables on the dependent variable. Statistical calculations in a multiple linear
regression analysis were used in this research by using the computer program
SPSS for Windows version 17.0. Summary of the results of processing the data
using SPSS program are as follows:
Table 4.2: Multiple Linear Regression
Coefficientsa
Model
Unstandardized Coefficients
Standardized
Coefficients
t Sig. B Std. Error Beta
1 (Constant) 1.281 2.277 .562 .575
BAW .295 .105 .241 2.802 .006
PQ .258 .108 .235 2.399 .018
BASS .295 .126 .225 2.333 .022
a. Dependent Variable: PURCDESC
(Source: Primary data processed with SPSS 17 )
Based on the data, the regression model is :
Y = 0.241X1 + 0.235X2 + 0.225X3
Regression model can be described as follows:
1. Brand Awareness (BAW) coefficient of 0.241 obtained with the positive
coefficient. This means that the greater brand awareness (X1), the bigger
increase of purchase decision (Y).
2. Perceived Quality (PQ) variable coefficients obtained for the positive
coefficient of 0.235 with a direction. This means that the greater the perceived
quality (X2), the bigger increase of purchase decision (Y).
55
3. Brand Association (BASS) coefficient of 0.225 obtained with the direction of
the positive coefficient. This means that the greater the brand association (X3),
the bigger increase of purchase decision (Y).
4.5 Hypothesis Test
4.5.1 Coefficient of Determination (R2)
(Source: Primary data processed with SPSS 17 )
According to Sarwono (2012), correlation value (R) is used to describe the
correlation between the dependent variable and the independent variable. The R
value on the table 4.5 show 0.499 which means that the correlation between
purchase decision and the three independent variables have medium strength of
correlation category which is in the range of 0.25 – 0.5 .
Coefficient of determination (R2) is used to measure how far the model's ability to
explain variation in the dependent variable (Ghozali, 2005). Coefficient of
determination value used in this research is the adjusted R square, since the
number of variable is more than two. If the table showed adjusted R square value
closer to 1 means that the independent variables provide almost all the
information needed to predict the variation in the independent variable. From the
results of calculations using the SPSS program coefficient of determination
(Adjusted R Square) obtained 0.228.
Table 4.3: Coefficient of Determination ( R2)
Model Summary
Model R R Square Adjusted R Square
Std. Error of the
Estimate
1 .499a .249 .228 2.31479
a. Predictors: (Constant), BASS, BAW, PQ
56
This means that 22.8% of customer purchase decisions can be explained by the
variable brand awareness, perceived quality, and brand association, while the rest
of the 77.2% of customer purchase decisions can be explained by other variables
not examined in this study.
4.5.2 F-Test
Table 4.4: F-test
ANOVAb
Model Sum of Squares df Mean Square F Sig.
1 Regression 188.216 3 62.739 11.709 .000a
Residual 567.975 106 5.358
Total 756.191 109
a. Predictors: (Constant), BASS, BAW, PQ
b. Dependent Variable: PURCDESC
(Source: Primary data processed with SPSS 17 )
F statistic test shows whether all the independent variables included in the model
have an influence together on the dependent variable (Ghozali, 2005). This test is
done by comparing the value of F calculated by the value of F table using a
significant level of 5%. If the count value of F is greater than F table then
simultaneously all the independent variables affect the dependent variable.
In addition, F statistic test can also reviewed from the value of probability result.
If the probability value of less than 0.05 (for a significance level = 5%), the
independent variables simultaneously influence the dependent variable.
Meanwhile, if the probability is greater than 0.05 then the independent variables
simultaneously has no effect on the dependent variable.
57
From the calculation using the SPSS statistical count obtained F = 11.709 it means
that the F-value is above the F table which is 2.69, along with a significance level
of 0.000 (significance level less than 0.05). This means that brand awareness,
perceived quality, and brand association has significant influence to customer
purchase decision.
4.5.3 T-Test
To test the significance of regression models for each variable can be partially
achieved by using the t test. The following table will explain each variable testing
partially.
Table 4.5: T-test
Coefficientsa
Model
Unstandardized Coefficients
Standardized
Coefficients
t Sig. B Std. Error Beta
1 (Constant) 1.281 2.277 .562 .575
BAW .295 .105 .241 2.802 .006
PQ .258 .108 .235 2.399 .018
BASS .295 .126 .225 2.333 .022
a. Dependent Variable: PURCDESC
(Source: Primary data processed with SPSS 17 )
1. Brand Awareness
Ho: X1 = 0: Brand awareness (X1) has no significant effect on purchase decision
(Y).
Ha: X1 > 0: Brand awareness (X1) has significant effect on purchase decision (Y).
58
The test results obtained with SPSS for variable X1 (brand awareness) obtained t
value = 2.802 above the t table = 1.65936, which means that Ho is rejected and Ha
accepted. The positive result (0.241) on regression coefficient means that brand
awareness has a significant positive influence on purchase decisions. In other
words, it can be concluded that the higher brand awareness (X1), the higher
customer purchase decision (Y) on President University.
2. Perceived Quality
Ho: X2 = 0: Preceived quality (X2) has no significant effect on purchase decision
(Y).
Ha: X2 > 0: Perceived quality (X2) has significant effect on purchase decision
(Y).
The test results obtained with SPSS for variable X2 (perceived quality) obtained t
value = 2.399 above the t table = 1.65936, which means that Ho is rejected and Ha
accepted. The positive result (0.235) on regression coefficient means that
perceived quality has a significant positive influence on customer purchase
decisions. In other words, it can be concluded that the higher perceived quality
(X2), the higher customer purchase decision (Y) on President University.
3. Brand Association
Ho: X3 = 0: Brand association (X3) has no significant positive effect on purchase
decision (Y).
Ha: X3 > 0: Brand association (X3) has significant positive effect on purchase
decision (Y).
The test results obtained with SPSS for variable X3 (brand association) obtained t
value = 2.333 above the t table = 1.65936, which means that Ho is rejected and Ha
accepted. The positive result (0.225) on regression coefficient means that brand
association has a significant positive influence on customer decisions. In other
59
words, it can be concluded that the higher brand association (X3) the higher
customer purchase decision (Y) on President University.
4.6 Result Interpretation
1. Simultan Towards Purchase Decision (Y)
Researcher found that from the calculation using the SPSS statistical count
obtained F = 11.709 above the table which is 2.69 with a significance level of
0.000 (significance level less than 0.05). This means that brand awareness,
perceived quality, and brand association has significant influence to customer
purchase decision simultaneously.
2. Brand Awareness (X1) Towards Purchase Decision (Y)
The test results obtained with SPSS for variable X1 (brand awareness) obtained t
value = 2.802 above the t table = 1.65936, which means that Ho is rejected and Ha
accepted. Brand awareness variable indicate a positive and significant effect and
also become one of the deciding factors on customer purchase decisions. This
analysis is supported by the result on multiple linear regressions with 0.241 which
are the highest. These results suggest that consumer awareness of a brand will
have a role in helping consumers decide. Thus, the brand awareness will create the
greatest opportunity for a person to choose a product brand. In the descriptive
analysis most of the respondents claimed that President University has a good
brand awareness which are proven by the ability of the respondents to remember
President University elements quickly these results support the concept of the
brand as stated by Aaker (2006) high brand awareness of one's will to create value
that will eventually become a source of reference in decision making. However in
the descriptive analysis respondent still feeling vague about the existence of
President University in the media (such as commercial, advertorial, etc).
60
3. Perceived Quality (X2) Towards Purchase Decision (Y)
The test results obtained with SPSS for variable X2 (perceived quality) obtained t
value = 2.399 above the t table = 1.65936, which means that Ho is rejected and Ha
accepted which concludes that perceived quality has a significant positive
influence on customer purchase decisions. Perceived quality variable (X2) has a
positive effect on customer purchase decisions (Y) with multiple linear regression
result on 0.235 which are the second highest. These results indicate that a good
perception of the quality of products / service will encourage consumers to make a
purchase interest in the product / service. If the customer sees a product or service
can satisfy the desires of the consumer, then the consumer will give a positive
assessment of the product. Improved decision and choices in terms of the
purchasing process means increasing product brand equity of the brand product.
The respondent data on the questionnaire in the description analysis shows that
most of the respondents still have a mixed perception of quality on President
University extension class.
4. Brand Association (X3) Towards Purchase Decision (Y)
The test results obtained with SPSS for variable X3 (brand association) obtained t
value = 2.333 above the t table = 1.65936, which means that Ho is rejected and Ha
accepted, it conclude that brand association has a significant positive influence on
purchase decision. The positive result (0.225) on regression coefficient concludes
that the higher brand association, the higher customer purchase decision on
President University. These results suggest that the association of the brand can
also help in creating a purchase decision. The descriptive analysis of brand
association shows that most of the respondents agree that they can relate to the
President University. As noted by Aaker (2006) that brand association can be a
plus factor for purchase decision, as brand association gives customer a help in
relating to the product, differentiate the product, and even giving the customer a
reason to buy the product.
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CHAPTER V
CONCLUSION AND RECOMMENDATION
5.1 Conclusion
The importance of brand is inevitable. Brand represents products on peoples mind,
therefore a perception of a brand is not always the same as the actual product
whether its quality or association. This research will take three elements of the
brand equity which are brand awareness, perceived quality, and brand association
to analyze President University brand, while the basic theory of customer
study/purchase decision is taken from Philip Kotler theory of customer purchasing
decision.
The research method used in this research is quantitative method with the primary
data of 110 extension students batch 2012 as sample. The data were collected
based on probability, random stratified sample where in order to describe
heterogen population, the population is categorized into an equal category (strata)
where from each strata sample is taken randomly (Neuman, 1994) therefore each
category has its representative in the sample. The number of the sample for this
research is 110 respondents. Based on the analysis and research that has been
done, this research can be concluded as follows:
1. Based on the results of multiple linear regressions analysis was done in this
study, obtained regression equation as follows:
Y = 0.241X1 + 0.235X2 + 0.225X3
From the regression equation it can be seen that the coefficients of the
regression equation is positive. So it can be concluded as follows:
a. Brand awareness (X 1) has a positive influence on purchase decisions (Y)
with a coefficient of 0.241. The T-test result for variable X1 (brand
62
awareness) shows that brand awareness has a significant positive effect on
customer purchase decision. This result concludes means an increase
customer awareness of a brand will also boost customers' purchase
decisions on President University extension class.
b. Perceived quality (X2) has a positive effect on purchase decisions (Y) with
a coefficient of 0.235. The T-test result for variable X2 (perceived quality)
shows that perceived quality has a significant positive effect on customer
purchase decision. This result shows that the higher perception of quality
towards the brand, the higher customers' purchase decisions on President
University extension class.
c. Brand associations (X3) has a positive influence on purchase decision (Y)
with a coefficient of 0.225. The T-test result for variable X3 (brand
association) shows that brand association has a significant positive effect
on customer purchase decision. This result shows that the more a brand is
associated in the customers mind, the more they are encourage for a
purchase decision.
2. Researcher found that from the calculation using the SPSS statistical count
obtained F = 11.709 above the table which is 2.69 with a significance level of
0.000 (significance level less than 0.05). This means that the customers
purchase decision can be explained and significantly influenced by the brand
awareness, perceived quality, and brand association simultaneously.
3. The R value (correlation) shows that that the correlation between the
independent and dependent variable has a medium correlation strength with
0.499 as the R value. In this research coefficient of determination R2
(Adjusted R Square) obtained 0.228.
This means that 22.8% of customers purchase decision can be explained by
the variable brand awareness, perceived quality, and brand association, while
the rest of the 77.2% of customer decisions can be explained by other
variables not examined in this study.
63
5.2 Recommendations
5.2.1 Recommendations for President University
Based on the result of this research, researcher would like to recommends:
1. Increase promotional activity, as the description analysis shows that the
respondents having mixed feelings against President University extension
class commercial awareness. An increase in promotional activity will
further increase the student’s awareness especially towards the extension
class.
2. Increase brand significance, as the adjusted R square value resulted in
0.228 which implies that the brand awareness, perceived quality and
brand association only explained 22.8% of customer decision regarding
their decision to continue their study while the 77.2% is explained by
other variables regarding customer purchase decision. This result giving
an insight that brand is still not the main factors regarding customer
decision to study in extension class. The other might be the price, the
location, or the availability of wide range major. Researcher would
suggest President University to improve the brand equity value to increase
the brand impact. As the good brand value will increase the perception of
President University brand in the face of the students and the company as
well.
5.2.2 Recommendations for the Next Research
This research was motored to find out how does brand play its role behind an
enormous increase of students in President University, and since the research is
only review the brand impact on student study decision it’s not providing a total
insight. Personally the researcher would recommended a research that analyze the
decision based on 4p (price, place, promotion, and product) theory.
64
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68
APPENDIX 1
Research Questionnaire
Bachelor Program
President University, No.
Questionnaire . . .
Dear Sir/Madam,
My name is Kristedy Rinto student from President University Bachelor program
in Management major, who is currently conducting a research about the influence
of brand awareness, perceived quality, and brand association to study decision at
President University extension program.
I kindly ask you if I may have your time to fulfill this questionnaire. Your
response is completely voluntary and will be kept strictly confidential. The result
of your questionnaire will be used as statistical data to help this study.
I am very thankful for your time by helping this study.
Regards,
Kristedy Rinto
69
Part I (Respondent Profile)
Please give your opinion by marking (X) on the multiple choice.
1. Sex?
a. Male
b. Female
2. Major?
a. Management (MGT)
b. Accounting (ACC)
c. Public Relation (PR)
d. Industrial Engineering (IE)
e. Mechanical Engineering (ME)
f. Information System(IS)
3. Batch?
a. 2008
b. 2009
c. 2010
d. 2011
e. 2012
70
Question part II
1. Give your opinion with mark (√) or (X) in the column provided some of the
statements below:
SD = Strongly Disagree
D = Disagree
N = Neutral
A = Agree
SA = Strongly Agree
Brand Awareness
No Description SD D N A SA
1 I can quickly remember logo or symbol of President University.
2 Whenever I’m asked about private University I remember President University quickly.
3 President University is well known.
4 I remember one of President University commercials in the media.
71
Perceived Quality
Brand Association
No Description SD D N A SA
1 President University facilities are adequate for my study needs.
2 Lecturers at President University are always give their best performance.
3 Staffs at President University are always have a good intention to help me.
4 President University staffs are consistently courteous with me.
5 President University has a better quality compared to other private University.
No Description SD D N A SA
1 President University is an international standard University.
2 President University is an English speaking University.
3 In my opinion President University is a prestigious university.
4 In my opinion President University offer the best quality at the best price.
72
Study Decision
No Description SD D N A SA
1 I am certain choosing President University as my first choice when I decide to college.
2 Another private University becomes less in consideration when I decide to study in President University.
3 I choose President University because it fits with my education needs.
4 I am certain that I have taken a right decision to study at President University.
73
APPENDIX 2
VALIDITY
Brand Awareness (X1)
Item-Total Statistics
Scale Mean if
Item Deleted
Scale Variance if
Item Deleted
Corrected Item-
Total Correlation
Cronbach's
Alpha if Item
Deleted
Q1 9.9000 4.095 .466 .617
Q2 10.2500 3.882 .483 .606
Q3 10.2500 3.776 .463 .623
Q4 11.1500 4.555 .468 .624
Perceived Quality (X2)
Item-Total Statistics
Scale Mean if
Item Deleted
Scale Variance if
Item Deleted
Corrected Item-
Total Correlation
Cronbach's
Alpha if Item
Deleted
Q1 12.3500 8.871 .814 .846
Q2 11.9500 9.945 .635 .884
Q3 12.2000 8.695 .789 .850
Q4 12.1000 9.042 .708 .868
Q5 12.0000 8.211 .724 .869
Brand Association (X3)
Item-Total Statistics
Scale Mean if
Item Deleted
Scale Variance if
Item Deleted
Corrected Item-
Total Correlation
Cronbach's
Alpha if Item
Deleted
Q1 10.3000 4.642 .767 .791
Q2 10.1500 4.976 .891 .736
Q3 10.1000 6.411 .534 .878
Q4 10.8500 5.713 .642 .840
74
Purchase Decision (Y)
Item-Total Statistics
Scale Mean if
Item Deleted
Scale Variance if
Item Deleted
Corrected Item-
Total Correlation
Cronbach's
Alpha if Item
Deleted
Q1 10.6000 6.674 .715 .737
Q2 10.2500 8.197 .574 .801
Q3 10.0500 8.050 .752 .722
Q4 9.6000 9.621 .562 .807
RELIABILITY
Brand Awareness (X1)
Reliability Statistics
Cronbach's
Alpha N of Items
.683 4
Perceived Quality (X2)
Reliability Statistics
Cronbach's
Alpha N of Items
.888 5
Brand Association (X3)
Reliability Statistics
Cronbach's
Alpha N of Items
.856 4
75
Purchase Decision (Y)
Reliability Statistics
Cronbach's
Alpha N of Items
.817 4
NORMALITY TEST
76
MULTICOLLINEARITY TEST
Coefficientsa
Model
Collinearity Statistics
Tolerance VIF
1 BAW .959 1.043
PQ .739 1.354
BASS .763 1.311
a. Dependent Variable: PURCDESC
77
HETEROSCEDASTICITY TEST
MULTIPLE LINEAR REGRESSION
Coefficientsa
Model
Unstandardized Coefficients
Standardized
Coefficients
t Sig. B Std. Error Beta
1 (Constant) 1.281 2.277 .562 .575
BAW .295 .105 .241 2.802 .006
PQ .258 .108 .235 2.399 .018
BASS .295 .126 .225 2.333 .022
a. Dependent Variable: PURCDESC
78
F-TEST (ANOVA)
ANOVAb
Model Sum of Squares df Mean Square F Sig.
1 Regression 188.216 3 62.739 11.709 .000a
Residual 567.975 106 5.358
Total 756.191 109
a. Predictors: (Constant), BASS, BAW, PQ
b. Dependent Variable: PURCDESC
COEFFICIENT OF DETERMINATION ( R2)
Model Summary
Model R R Square Adjusted R Square
Std. Error of the
Estimate
1 .499a .249 .228 2.31479
a. Predictors: (Constant), BASS, BAW, PQ