The Influence of Marketing Mix (7p’s) Towards

i

The Influence of Marketing Mix (7p’s) Towards

President University Student Buying Decision

(Case at KFC Lippo Cikarang Mall)

By

Wisnu Setiawan Lingga

ID no. 014201000169

A skripsi presented to the

Faculty of Business President University

In partial fulfillment of the requirements for Bachelor Degree in Economic Major in Management

February 2014

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PANEL OF EXAMINERS APPROVAL SHEET

The Panel of Examiners declare that the skripsi entitled “The

influence of marketing mix (7p’s) Towards President University

Student Buying Decision (Case at KFC Lippo cikarang Mall)”

that was submitted by Wisnu Setiawan Lingga majoring in

International Business from the Faculty of Business was

assessed and approved to have passed the Oral Examinations on

20 February 2014

Vinsensius Jajat Kristanto SE., MM., MBA.

Chair - Panel of Examiners

Ir. Yunita Ismail Masjud, M. Si

Examiner I

Dra. Genoveva, MM

Examiner II

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SKRIPSI ADVISER

RECOMMENDATION LETTER

This skripsi entitle “The influence of marketing mix (7p’s) Towards

President University Student Buying Decision (Case at KFC Lippo

cikarang Mall)” prepared and submitted by Wisnu Setiawan Lingga in

partial fulfillment of the requirement for the degree of Economic in the

Faculty of Business has been reviewed and found to have satisfied the

requirement for a skripsi fit to be examined. I therefore recommend this

skripsi for Oral Defense.

Cikarang, Indonesia, 20 February 2014

Acknowledged by, Recommended by,

Vinsensius Jajat Kristanto SE., MM., MBA. Dra. Genoveva,MM

Head, Management Study Program Advisor

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DECLARATION OF ORIGINALITY

I declare that this skripsi, entitled “The influence of marketing mix

(7p’s) Towards President University Student Buying Decision (Case at

KFC Lippo cikarang Mall)” 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, 20 February 2014

Wisnu Setiawan Lingga

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ABSTRACT

Fastfood is very famous for teenager today. Nowadays, lots of franchises of

fastfoods compete in Indonesia market. This study analyzes the effect of marketing

mix (product, price, place, promotion, people, process, and physical evidence)

towards President University Student Buying Decision (Case at KFC Lippo

cikarang Mall). This research seeks to find out the most dominant factor of

Marketing Mix (7p’s) influence to the purchase decision in KFC Lippo cikarang.

The methods of data collection are interviews, questionnaires, and literature.

Methods of analysis are descriptive analysis, classical regression, and multiple

linear Regression. From the calculation of the multiple linear regression, it can be

said that some variables from marketing mix have a significant influence on

purchasing decisions. According to t test, the researcher found that variable

product, People, and the Process was significant influence to Buying Decision.

While f test to test the simultaneously of all variables obtained f value was 48.694.

Coefficient determination (R2) of 0.691, it meant that 69,1% of purchasing

decision could be explained by marketing mix (7p’s). Meanwhile, other part of

30, 9% of purchasing decision was influenced by other variables, which were not

included in this research.

Keywords: Marketing mix, product, price, place, promotion, people, process,

physical evidence, and buying decision.

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ACKNOWLEDGEMENT

From the start the researcher doing this skripsi until finish, the research found many

problems and difficultness during the process. The researcher will be helpless if

there are no friends, family, adviser and God who support and helping the

researcher until this skripsi finish and hopefully can be useful for the future.

First of all, researcher want to give big thanks to God who always make researcher

up when researcher down. And always believe that researcher can do it in the dead

time that almost touches the deadline. Also for the healthiness and inspiration

during the researcher do the researches until it fully finished.

My mom for all support that you gave me until this the researcher can finish the

skripsi. Thanks for the food and caring me for what I want during the research. I

would say all my thanks just for you. I will be nothing without your support and

your appearance. You are really something for me. Thanks for all you give for me.

My family (lissa, Jeane latycia, Lina, Winata) thanks for your attention and your

support that always help me when I have no idea how to continue this research.

Thanks for all your support.

My friends (Hengky Lo, Surya, Lee Minh Hung, Linda, Ryanda, Galih, Rahman,

Hendra, Hendy, and Riri) for your support and your annoyance that make my mind

refresh again and give innovation for my skripsi.

For my beloved skripsi adviser Miss Filda who is always patient to answer my

entire stupid question. For your hard work and knowledge that not all I do not

understand. Thanks for your advice that you gave to me all this time.

Best Regards

Wisnu Setiawan Linga

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TABLE OF CONTENTS

PANEL OF EXAMINERS APPROVAL SHEET ................................................. ii

SKRIPSI ADVISER .............................................................................................. iii

DECLARATION OF ORIGINALITY ................................................................... iv

ABSTRACT ............................................................................................................ v

ACKNOWLEDGEMENT ..................................................................................... vi

TABLE OF CONTENTS ...................................................................................... vii

LIST OF TABLES .................................................................................................. x

LIST OF FIGURES .............................................................................................. xii

CHAPTER I ............................................................................................................ 1

INTRODUCTION ........................................................................................................... 1

1.1 Background of Study ................................................................................................. 1

1.2 Problem Identification............................................................................................... 4

1.3 Statement of the Problem .......................................................................................... 4

1.4 Researcher Objective ................................................................................................. 5

1.5 Significance of Study ................................................................................................ 6

1.5.1 For the researcher ........................................................................................... 6

1.5. For KFC Lippo Cikarang ................................................................................. 6

1.5.3 For the Reader ................................................................................................ 6

1.6 Definition of terms ..................................................................................................... 6

1.7 Scope and Limitation................................................................................................. 8

CHAPTER II ........................................................................................................... 9

REVIEW OF LITERATURE ......................................................................................... 9

2.1 Theoretical Review .................................................................................................... 9

2.1.1 Marketing ....................................................................................................... 9

2.1.2 Marketing Restaurant ................................................................................... 10

2.1.3. Marketing Mix ............................................................................................ 11

2.1.4 Customer Buying Decision .......................................................................... 16

2.2 Previous Research .................................................................................................... 19

2.3 Theoretical Framework ........................................................................................... 21

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2.4 Hypothesis ................................................................................................................ 22

CHAPTER III ....................................................................................................... 23

RESEARCH METHODOLOGY ................................................................................. 23

3.1 Research Design ....................................................................................................... 23

3.2 Research Framework ............................................................................................... 24

3.3 Sampling Design ...................................................................................................... 26

3.4 Research Instrument ................................................................................................ 26

3.5 Validity & Reliability .............................................................................................. 28

3.5.1 Validity Test ................................................................................................. 28

3.5.2 Reliability Test. ............................................................................................ 29

3.6 Data Collection Procedure ...................................................................................... 30

3.6.1 Primary Data ................................................................................................ 30

3.6.2 Secondary data. ............................................................................................ 30

3.6.3 Measurement Scale ...................................................................................... 31

3.7 Testing hypothesis ................................................................................................... 32

3.7.1 Multiple Regressions ................................................................................... 32

3.6.2 Classical Regression Assumptions............................................................... 33

3.6.3 F Test ……………………………………………………………………. 35

3.6.4 T Test ......................................................................................................... 35

CHAPTER IV ....................................................................................................... 36

ANALYSIS OF DATA AND INTERPRETATION OF RESULT ........................ 36

4.1 Company Profile ...................................................................................................... 36

4.1.1 Vision, Mission, Objective .......................................................................... 37

4.1.2 Corporate Value ........................................................................................... 38

4.1.3 Corporate Strategy ....................................................................................... 39

4.2 Data Result Analysis ............................................................................................... 39

4.2.1 Validity and Reliability ................................................................................ 39

4.2.2 Descriptive Statistics .................................................................................... 45

4.2.3 Classical Regression Assumptions............................................................... 53

4.2.4 F test and T-test ............................................................................................ 56

4.2.5 Multiple Regression Model .......................................................................... 59

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4.2.6 Coefficient Determination ........................................................................... 60

4.3 Interpretation of result ............................................................................................. 61

CHAPTER V ........................................................................................................ 63

CONCLUSION AND RECOMENDATION ............................................................. 63

5.1 Conclusions .............................................................................................................. 63

5.2 Recommendation ..................................................................................................... 64

5.3 Recommendation for the future study ................................................................... 65

REFERENCES ..................................................................................................... 66

BOOKS ............................................................................................................................ 66

Journal.............................................................................................................................. 68

Internet ............................................................................................................................. 68

APENDIX I ........................................................................................................... 69

Questionnaire .................................................................................................................. 70

APPENDIX II ....................................................................................................... 73

Transcript of Interview.......................................................................................... 73

APPENDIX III ...................................................................................................... 75

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LIST OF TABLES Table 1.1 the improvement in restaurant and in medium and big scale, 2007 –

2011……………………………………………………………………………... 2

Table 2.1 Previous Research………………………...………………………….. 19

Table 3.1 Dependent and independent variables in this research…………...… 26

Table 3.2 Relative Grading Statement…………………………………….……. 31

Table 4.1 Validity test from Pre-test……………………………………………. 39

Table 4.2 Reliability test From Pre-Test (Product)…………………………….. 41

Table 4.3 Reliability test From Pre-Test (Price)……………………………….. 41

Table 4.4 Reliability test From Pre-Test (Place)………………………………... 42

Table 4.5 Reliability test From Pre-Test (Promotion)………………………..…. 42

Table 4.6 Reliability test From Pre-Test (People)………………………………. 43

Table 4.7 Reliability test From Pre-Test (Process)………………….………….. 43

Table 4.8 Reliability test From Pre-Test (Physical Evidence)……………...…... 44

Table 4.9 Reliability test From Pre-Test (Buying Decision)…………….....…… 44

Table 4.10 Demographic View (Batch)………………………………………... 45

Table 4.11 Demographic View (Nationality)…………………………………… 46

Table 4.12 Demographic View (Major)………………………………………… 46

Table 4.13 Demographic View (Gender)…………….………………………..... 47

Table 4.14 Mean & standard Deviation (Product)…………………….……….. 48

Table 4.15 Mean & standard Deviation (Price)………………… …………....... 49

Table 4.16 Mean & standard Deviation (Place)………………………………… 49

Table 4.17 Mean & standard Deviation (Promotion)………………….………... 50

Table 4.18 Mean & standard Deviation (People)………………………….……. 50

Table 4.19 Mean & standard Deviation (Process)………………………. …….. 51

Table 4.20 Mean & standard Deviation (Physical Evidence)…………………... 51

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Table 4.21 Mean & standard Deviation (Buying Decision)……………….. ….. 52

Table 4.22 Mulicollinearity Table………………………….…………………… 54

Table 4.23 F-Durbin- Watson Table……………………………………………. 56

Table 4.24 F-Test Table…………………...……………………………………. 57

Table 4.25 T-Test Table……………………………………….………………... 58

Table 4.26 Significant Table…………………...……………………………….. 60

Table 4.27 Coefficient Determination………………….…….…………………. 61

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LIST OF FIGURES

Figure 2.1 Theoretical Framework…………….……………...………………… 21

Figure 3.1 Research Framework …………...….………………………………. 25

Figure 3.2 Validity Test Formula……………….………………………………. 28

Figure 3.3 Reliability Test Formula……………….……………………...…….. 29

Figure 3.3 Multiple Regression Formula……………….………………...…….. 32

Figure 3.5 Multicollinearty Test Formula……………….……………...………. 34

Figure 3.5 F-Test Formula……………………………...……………………….. 35

Figure 4.1 Demographic View (Batch)...…………… ………………………… 45

Figure 4.2 Demographic View (Nationality)...……………….……. ………….. 46

Figure 4.3 Demographic View (Major)................................................................. 47

Figure 4.4 Demographic View (Gender)……………………………………....... 48

Figure 4.5 Normality Histogram........................................................................... 53

Figure 4.6 Normality Plot…………………....………………………………….. 53

Figure 4.7 Heteroskedacity Scatter Plot...……………….……………. ………. 55

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CHAPTER I

INTRODUCTION

1.1 Background of Study

Indonesia is a big country who have many restaurants available. From data

according to BPS (Badan Pusat Statistik, 2010) Indonesia have 2,977 restaurants

which spread around Indonesia. The big improvement in number of restaurant in

Indonesia is happened in 2008. The improvement of Indonesia in restaurant is about

28, 29% than 2007 (BPS, 2011). The improvement of Indonesia in restaurant in the

other year is not big than 2008, in 2009 the improvement happened around. 20,

98%, and in 2010 the improvement happened around 7.84%, in 2011 the

improvement in the restaurant just 2, 09%. (BPS, 2011). From the data above, we

can see the improvement in 2008 and 2009 is bigger than 2010 and 2011. We can

conclude that in 2008 and 2009 is happened to expand their business first, and in

the 2010 and 2011 is marketing war, where the restaurant needs marketing strategy

for their business.

The spread of the restaurant in Indonesia is not spread evenly. Most of

restaurant located in DKI Jakarta province. In DKI province 1,361 Restaurant in

2011 (BPS, 2011). The second province is west java. In west java there is 289

restaurants in 2011. The rest like another java province has around 200 each. In

north Sumatra province, it has 168 restaurants. The rest province is not reach 100

restaurant in that province.

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Table 1.1 the improvement in restaurant and in medium and big scale, 2007

– 2011

Year Restaurant

Average of Worker Total Growth (%)

2007 1,615 - 27

2008 2,235 38,39 27

2009 2,704 20,98 27

2010 2,916 7,84 27

2011 2,977 2,09 28

Sources: Badan Pusat Statistik (BPS; 2011)

From table 1.1.the total restaurant in Indonesia was increased from year to year.

When as, the growth of restaurant was decreased. In 2008 to 2009 the percentage

of growth on restaurant in Indonesia is 20, 98%, but in 2009 to 2010 the percentage

of growth on restaurant in restaurant is 7, 84%. It can be seen that the percentage

of restaurant in Indonesia was decreased.

In 2012 KFC Indonesia also have some plans to keep their existency was

keeping up, and want to make their competitor to be their follower. In that time

KFC want to build about 30 or more franchise in this year. KFC will save cost in

operational system with good management. This private sector company want raise

the price the product, but the increase is lower than ten percent. The other thing that

KFC should do is review about cost of goods sold with renegotiation of banner.

There are some plans that KFC do to keep their existency during this globalization

era with a lot of fast food restaurant.

Time by time, PT Fast Food Indonesia with their famous product KFC was been

able to expand into small areas in Indonesia such as small districts and other cities

in Indonesia like Surabaya, Semarang, etc. In 2007, KFC already have 307

franchises in Indonesia. Around 11.840 people is working with KFC. With many

franchises that KFC have, their total sales can be 1.590 trillion in a year. To

compete with other fast food restaurant, KFC always monitoring and evaluation the

market that got any comment from consumer to improve their quality.

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To improve the sales, KFC use music as one of their strategies to get more

consumers. Music is just like the air for the teenager, which is why KFC use these

strategies to get consumer from teenager. For KFC, music is the effective way to

get more consumers. After see the successful program from TV ‘Indonesia idol’,

KFC finally chose ways for promotion with band indie. Music that played by indie

band is easy listening music. One of successful promotion that use indie band is

Juliete band as one successful vanguard in their promotion.

Competitor is always shop up one by one. Like old competitor McDonalds.

Always have same product like KFC, but the taste of the fried chicken of KFC is

not unbeatable. McDonalds have good strategies like delivery services. A delivery

service strategy is very successful considering KFC in that time does not have

delivery services. A lot of people are a busy people, for employee who can always

go out to buy food or university student who busy with their assignment. Now days

KFC have delivery services that can beat McDonalds in sales. The competitor of

KFC in fast food restaurants out there are Popeye, Wendy's, California Fried

Chicken, A&W, Rocket Chicken, Quick Chicken, Olive.

According to Theo (2013), the shift leader of KFC Lippo Cikarang the

competitor near KFC Lippo Cikarang is a lot, but KFC never see the competitor as

the competitor. Every restaurant have the uniqueness for the product, which never

scare if there is new fast food restaurant near KFC Restaurant.

Data is the key of this research. Although is online or offline (manually). With

the internet connectivity, the researcher will found all article, book, and theory, all

which can support this research. Library will be second option to do some research

for the theory which connected with the research. The researcher will do the best

for looking for the information that can support this research

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1.2 Problem Identification

Based on data above, KFC is favorite fast food restaurant because there are

many franchise of KFC spread around Indonesia. That is why we can see KFC in

every province even though there distance with both KFC is near. That make KFC

is favorite fast food restaurant.

Supported by statement from Theo (2013), the new competitor of KFC located in

surrounding Cikarang (McD Jababeka) has Impact to the sales of KFC. Our

customer of Teenager and to represent a teenager, the researcher chose President

University Student. The customer of President University student has reduce, but

not significantly. This phenomena / case created a problem to be solve in this study.

“Why President University student still visit KFC Lippo Cikarang even

though there is new fast food restaurant nearby them.”

From the problem above, the researcher want to know the influence of buying

decision based on Marketing Mix (7p’s).

1.3 Statement of the Problem

The statement of problem that are evaluated in this study can be formulated in

the form of the questions as state below:

A. Is there any influence between products of marketing mix towards KFC

consumer buying decision?

B. Is there any influence between prices of marketing mix towards KFC consumer

buying decision?

C. Is there any influence between places of marketing mix towards KFC consumer

buying decision?

D. Is there any influence between promotions of marketing mix towards KFC


E. Is there any influence between peoples of marketing mix towards KFC


F. Is there any influence between processes of marketing mix towards KFC


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G. Is there any influence between physical evidence of marketing mix towards

KFC consumer buying decision?

H. Is there any influence between Marketing Mix 7p’s towards KFC consumer

buying decision?

1.4 Researcher Objective

The researcher interest with this topic because many teenager chose fast food

restaurant as their favorite food during their university life. The researcher also

likes to eat at fast food restaurant. With this life of university student, the researcher

want to know why KFC still have ray of light in president university student’s eye.

KFC have something unique that can make their consumer buy their product

continues.

This research purposed to know whether marketing mix (7p’s) has influence

towards President University Student consumer buying decision. Furthermore, the

researcher also want to know what the most significant factor from marketing mix

that affect in president university student is buying decision process.

For the explanation above, the objective of this research are:

A. Analysis the influence between products of marketing mix towards KFC

consumer buying decision.

B. Analysis the influence between prices of marketing mix towards KFC


C. Analysis the influence between places of marketing mix towards KFC


D. Analysis the influence between promotions of marketing mix towards KFC


E. Analysis the influence between peoples of marketing mix towards KFC


F. Analysis the influence between processes of marketing mix towards KFC


G. Analysis the influence between physical evidence of marketing mix towards

KFC consumer buying decision.

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H. Analysis the influence between Marketing Mix 7p’s towards KFC consumer

buying decision.

1.5 Significance of Study

Based on the objectives of the research, this research is meant to be able to

give many advantages and contribution both in academic and professional practice.

1.5.1 For the researcher

This research will contribute as well as enhance the theories that discovered

factor that affecting buying decision, although the researcher’s work lacks of

experience. However, more or less the research will practically help the readers

understand how to apply the theories are.

1.5.2 For KFC Lippo Cikarang

The research will contribute for the companies of origin of these research

“analysis marketing mix towards buying decision process” so the company can be

more sensitive about the result of this research.

1.5.3 For the Reader

The research wills also a reference for readers in general, student and

researcher in particular. They look take a look at all theories used and their impact

in reality. In addition, it will be able to serve for their study to get a full

understanding about the topic in combination with other theories and researches.

1.6 Definition of terms

A. Restaurant: a place where the staff of restaurant offer the menu of the

food

B. BPS (Badan Pusat Statistik): Non Departmental Government

Institutions in Indonesia, which has a primary function as a provider of

basic statistical data, both for the government and for the general public,

both nationally and regionally.

C. Marketing: a mixture of linked activities to understand consumers' needs

and develop promotion, distribution, service and price that consumer

needs can be met with both a certain profit level.

D. KFC: The famous Fast food restaurant which sell fast food product

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E. Marketing Mix: a set of marketing tools that companies use to achieve

marketing objectives in meeting its target market.

F. Buying Decision: Identify all possible options to solve the problem and

assess the systematic selection purpose and objective and decisive

advantages and disadvantages of each

G. Product: Goods and services which can be sell to buyer

H. Price: the value of product

I. Place: Some space that can be useful to make the transaction about buy

and sell is happened.

J. Promotion: The activities that marketer do to make their product is more

popular and attracted to buyer buy the product.

K. People: Many person who work for the company that have a task to

satisfied the costumer

L. Process: The activity regarding handling the administration between

seller and buyer

M. Physical Evidence: The facility there are needed in the quality of

products and services present real.

N. Competitor: the other company who has same of product line of product

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1.7 Scope and Limitation

In this research, researcher focuses on analysis marketing mix (7P’s) towards

buying decision. The scope of this research is about to analyze the influence

marketing mix to buying decision and the most important factor from marketing

mix variable to buying decision process of in president university student. In this

research the population uses is President University students, however President

University is a campus which have a hundred or thousand students that sometimes

is not available to answer the questioner from the researcher. According to Sekaran

(2010) that “the Determine of sample size number be among 30 to 500 elements”.

In this research, the researcher will chose 150 respondent to answers the questioner

and there criteria for to be respondent, The criteria for the target respondent in this

research is the President University student who already visit and bought KFC

Lippo Cikarang product. The independent variables that will use for this research

are a product, Price, Place, Promotion, Process, People, Physical evidence towards

dependent variable, Buying Decision.

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CHAPTER II

REVIEW OF LITERATURE

2.1 Theoretical Review

2.1.1 Marketing

Marketing is the main core for the existence for the company, that condition

make the company must be orientated and be creative to fulfill what consumer

want. There are a lot of economic expert give the definition about marketing, even

though their definition of marketing is different, but the main meaning is same.

That are many definition of marketing is happened because the point of view each

expert is different. Not just different people, sometimes old expert has change old

theory with new theory.

First from the old one, according to Baker (1976) Marketing is the enigma

of marketing is that it is one of man's oldest activities and yet it is regarded as the

most recent of business disciplines. And according to Hani Handoko (2000: 4)

Marketing is Suatu system keseluruhan dari kegiatan – kegiatan usaha yang di

tujukan untuk merencanakan, menemukan harga, mempromosikan, dan

mendistribusikan barang dan jasa yang dapat memuyaskan kebutuhan baik kepada

pembeli yang ada maupun pembeli potentional.But according to Kotler and

Armstrong (2010) Marketing is marketing is the process by which companies

create value for consumers and build strong consumer relationships in order to

capture value from consumers in return.

There are a lot of definitions of marketing by economics specialist and have

different point of views. In this modern era there many association and institute that

related with economic. The association and institute have their point of view. Many

institutes have their definition of marketing.

10

For example, according to the Chartered Institute of Marketing (CIM)

(accessed 2013) Marketing is the management process for identifying, anticipating

and satisfying consumer requirements profitably. According to American

Marketing Association (2007: 10) marketing definition is the activity, set of

institutions, and processes for creating, communicating, delivering, and exchanging

offerings that have value for consumers, clients, partners, and society at large.

All definitions above show the similarity about their statement. Therefore,

researchers has conclude that’s marketing definition is all about activity from the

company that has one goal, the goal is give the consumer satisfaction and

consumer’s want through selling process. Marketing is all operation system since

the idea of the product or services is pop up from the head and keep going after the

product is sold. So there is just no buying and selling process but cover all activity

in the company.

Marketing is oriented with the consumer that is why marketing is just

thinking about what consumer wants and consumer needs. Talking about that,

company will make what we sell is more valuable than what we make. Company

always does the research with one goal, to be what consumer wants, and consumer

needs.

2.1.2 Marketing Restaurant

Marketing restaurant is a philosophy that maps marketing management

decisions and owners, to customers, employees, suppliers, and suppliers, and the

general public, about honestly, sincerity and moral values needed in the interests to

be placed in ethics and moral values in business (Walker and Lundberg; 2005)

Accordance with the philosophy of marketing, engineering and marketing

practices are management efforts to determine the wishes of certain group of people

and a specific target market and target specific markets in terms of food, service,

price and atmosphere restaurant. Marketing discover what consumers want and

provide desire in the menu, atmosphere and sometimes the researcher also wants

the new service. In the restaurant business, consumers see, touch, feel and listen

through the offers provided.

11

Always solve marketing problems faced by consumers. Lifestyle changes

lead to different of the desires and needs of consumers who vary from one location

to another. Assumption is an ideal restaurant or not is different for everyone. Some

people are looking for luxury, comfort or a particular value of a restaurant. But the

quality of food that is always in search by consumers. There are other things that

cause people to come to the restaurant, it was hunger. There are also other

consumers who are looking for entertainment that is inside the restaurant.

2.1.3. Marketing Mix

In marketing, marketing mix is the famous marketing term than the other

marketing term. Marketing mix is like strategy or operational tactical on part of

marketing plan. In the first time, according to Mc. Charty (1964), Marketing Mix

is divided by 4p’s. 4p’s of marketing mix are product, price, place, and promotion.

As time passed, there are a new theory that more effective than before. According

to Boom and Bitner (1981) marketing mix in services company need some

additional in marketing mix. They add 3p’s for additional for marketing mix such

as people, process, and physical evidence.

There are many economic experts that already give definition about

marketing mix. Every expert has each point of view for the marketing mix. Many

definitions about marketing mix but just have one meaning of marketing mix.

For example, according to Kotler and Armstrong (2010) marketing mix is

The set of controllable tactical marketing tools – product, price, place, and

promotion – that the firm blends to produce the response it wants in the target

market. But according to Dharmesta & Irawan. (2005) definition of marketing mix

is the variables that used by company as a tool to fulfill or serve consumer wants

and consumer’s needs.

From both definition above the researcher can make the conclusion that

marketing mix is the set of variables controllable that can used by the company to

influence the consumer reaction from certain market segment that pointing to the

company, marketing mix that the researcher use for the research is 7P’s.

12

2.1.3.1 Price

According to Solomon et al (2009) price is the amount the consumer must

exchange to receive the offering. Price is also discount, sales, credit, period of

payment. Company has a goal that must be achieved in that time was set. In terms

of price, company must reduce the cost with improvement on manufacturing and

efficiency; the most important things is the marketer must needs to increase the

perceived value of benefits from each product and serve the consumer well.

In marketing mix, price is the least attractive element. Marketing

department must be really focus on generating as high as margin as possible. The

statement above is that the marketing department must change product, place, or

the promotion in many ways before resorting the price reductions, anyhow price is

a multifunction variable of the mix as public can see.

2.1.3.2 Place

According to Kotler and Armstrong (2010) definition of place is Place

include company activities that make the product available to target consumer. The

activities above include distribution, stock and location. Strategies location will be

profitable for the company if the place is near the market or the place which is easy

being reach with the consumer. Not just that, the company also think about to rent

or place investment to more expensive. The High price of the place that can be

compensation with marketing cost reduction.

2.1.3.3 Product

According to Kotler and Armstrong (2010) product means the combination

of goods-and-services of companies offer to the target market. Product is also the

one who can make the company still exist and running the company. Company can

earn some profit from the value of that product who can help the company set the

consumer mind with their product image.

There are five product attribute that the company must do to win with other

competitor with deliver and give the benefits to the consumer. According to Kotler

and Armstrong (2009), product quality, branding, packing, product features,

13

labeling, and product support services are the variable that must be given to the

consumer as consumer benefit.

2.1.3.3.1 Product quality

Product quality is important or one of the main points that all marketers

are relevant in delivering products or services of a specific characteristic that needs

the capability to meet consumer needs.

2.1.3.3.2 Branding

Brand is logo, sign, name and symbol that has a value of that identify the

product or service and distinguish it from other products and services from other

competitors

2.1.3.3.3 Labeling

Labeling is doing several functions, first label are to explain a few things

about a few products like ingredients products, the origin create the product, and

who create the product. The second label assist marketers to provide identification

to the product or brand. Last is to promote and reposition product in mind of the

consumer.

2.1.3.3.4 Product features

Product features is value of or benefit the firm that produce the product

and also a tool for companies to differentiate their the product from competitors'

products

2.1.3.3.5 Packing

Packing is process design, cover up, and wrap the product into something

in the context to look nice, tell it to protect the identification of hazardous things.

2.1.3.3.6 Product support services

Product support services is consumer service which the company offers to

consumers after bought their product, services generally provided by the company

can be a support for large and small parts of the overall offer.

14

2.1.3.4 Promotion

Promotion is a tools from marketing department each company that used

to attract and give the brand image to customer minds. With the promotion, the

company can increase the sales of the company. According to Kotler and

Armstrong (2009), promotion is a set of activities that give the explanation to

consumer about the benefit of the product and make them to buy the product.

Different statement with belch, belch (2003) said promotion is the coordination of

all marketer in company that need to setup the information of the product and

coaxing the consumer to buy the product or services or give the brand image. In

the end all statement from the expert is just one means, to promote their product

and make consumer buy the product of services.

2.1.3.4.1 Promotional Mix

Promotion mix is basic tools to complete the goals of company

communication (Belch, 2003). Promotion mix is also a set of promotion ways that

use to present the specific product (Pride and Farrell (2010). There are 5 variable

in promotion mix, there are advertising, public relation, personal selling, direct

marketing, and sales promotion. There are the definition each variable according to

Blech (2003) and Kotler and Armstrong (2009):

2.1.3.4.1.1 Public relations

Public relation is make a good relations with the firm’s various public by

get nicely image, make a good corporate image and through any kind of issue,

history and event (Kotler, 2009). Public relation are activities to give the

understanding about product people and etcetera.

2.1.3.4.1.2 Sales promotion

Advertising of personal sales often cooperate with other promotional tools,

promotional sales. Sales promotion consists of short-term incentives to push the

purchase or sale of a product or service

2.1.3.4.1.3 Direct Marketing

Where society organizations directly with targeted customers and

transactions to generate a response. Direct marketing is more than direct mail and

15

mailing catalog. involves a variety of activities, including database management,

direct sales, telemarketing, and direct response though advertising direct mail, the

Internet, and a variety of broadcast and print media.

2.1.3.4.1.4 Advertising

Paid from any non-personal communication about an organization,

product, service, or idea with late-identified sponsor, according to Kotler (2009)

the objective of advertising is the task that must be complete with right

communication, right time and the right communication.

2.1.3.4.1.5 Personal Selling

Personal selling is a communication between buyer and seller that make

the conversation, which sales job is make the buyer buy their product. Usually

personal selling is like a meeting between 2 people that make a deal. There are also

a communication ways to speak with the buyer is telemarketing or by phone.

2.1.3.5 Process

Services is something that you cannot see and restart, it means which

service is what we get cannot be save and back to first we see. The company

become challenged to give the best service to costumer and increased the services

that give to customer because the company know that services cannot be save or

keep. Services is a set of idea and activity which deliver the services from delivery

services and operating system that give to customer (Bitner and Broom, 2005). All

process from step and ways of giving the best services to costumer is end in

customer hand.

2.1.3.6 Physical Evidence

Physical evidence is choose the condition of the place that give the service

between marketer and customer, also join with goods or tangible commodities

(Bitner and Broom; 2005). Physical evidence is one factor that affecting buying

decision as one of marketing mix. Physical evidence is concentered in environment

that interact with customer with the services, not the product. Physical evidence in

restaurant like focus in facility as big reason that customer come to that place.

16

Temperature, cutlery, table setting and crockery, menu design, employee uniform,

decor/ comfortable seating it is categorized as physical evidence in restaurant

industry. The increase of services of the company, the more need company to give

the physical evidence for customer where the experience from service of company

can get the customer mind.

2.1.3.7 People

The other important factor in marketing mix is people. People is very

important person who delivering company product. Staff who is the one who face

directly to customer. Staff of company have big contribution for service quality of

the firm. The staff of company can be the image of the company which can lead

the company to the higher customer satisfaction.

People or the staff of the company have a big ole to give the image of the

company. If the staff is nice and diligent, it can increase of sales. If the staff is rough

and lazy, it can decrease the sales. Company can increase the customer loyalty and

customer satisfaction from their staff who warm and friendly (Kotler, 2009).all

people will directly connected to services counter, from the company ask the

employee, and the employee will do to customer (Bitner and Broom, 2005).

2.1.4 Customer Buying Decision

According to Jenu (2004), marketing mix is a tools to affect the consumer

to buy the product and services and if the all of marketing mix is doing well, It can

be sure that can affect the consumer buying decision. Consumer as a decision maker

probably assumes that options such as products or services are their problem

solving (Peter & Olson, 2010).buying decision is all from product and services that

serve by the company to customer. To increase the sales and giving what customer

wants, the sales must to know what the customer buying decision is. The sales can

give to customer what the customer really want. Problem recognition, information

research, evaluation of alternatives, purchase decision, and post purchase behavior

are five step of customer buying decision (Kotler & Keller, 2012).

Marketing mix policies set by marketers to consumers in decision making

is a big influence. It is based on the purpose of marketing activities to meet

customer satisfaction, as proposed by Swastha (1997:10) that "the whole system of

17

marketing activities in the planning, pricing, promoting, distributing goods and

services that can satisfy the needs of the buyer.

2.1.4.1 Stages of Customer Buying Decision

2.1.4.1.1 Problem Recognition

Problem recognition is the first step of customer buying decision process.

In problem recognition, customer must know what the external is and internal factor

to make the customer buy this product.in internal factor is the costumer is hungry

and thirsty, and the external factor comes from the environment of the place. From

that all, the marketer must know the background and what is costumer want’s want.

The company can collect the data from a lot of number of the costumer.

2.1.4.1.2 Information Search

There are two level in information search process. Heightened attention is

there first level of information search. Heightened attention is the condition where

the person is become curios about the product, the next level is active information

search. This level is about the person looking for or gathering all information to

know more about the product. Personal, commercial, public, experiential are the 4

major information sources which used to search information about the product.

2.1.4.1.3 Evaluation Alternative There are three basic concept that related with customer evaluation process.

First, all customer want to fulfill their needs. Second all costumer want the benefit

from the product they bought. Last is all costumer want to know that each product

have specialty than the other product. From the three process, the costumer will pay

for the benefit they got from product. The sales will have different target base on

the benefit of each product, so it can be benefit for all segment who buy the product.

With studying a get the experience, the people can get the attitude and belief.

Belief means when someone who really want hold something really much, and

attitude means when people can enduring the emotional, action, and good or bad

situation. Customer will have attitude to all in this word such as food, clothes,

music, religion, and politic.

18

2.1.4.1.4 Purchase Decision

Purchase decision is the next step after evaluation process. The customer

start too compared with other brand. The customer compare with brand that which

one that make the customer want to buy the product. There are 5 sub decision to

get the purchases intention of customer. There are brand, dealer, quantity, timing,

payment method. Two factor that make the purchases intention and purchases

decision are attitude of the others and anticipated situational (Kotler & Keller,

2012)

2.1.4.1.4.1 Unanticipated Situational

Unanticipated Situational is the situation that can change the purchases

intention because this factor can be shown.

2.1.4.1.4.2 Attitude of the others

The influence from person attitude depends on two things; first is a

motivation of the person to comply with the other person wishes. Second is the

intensity of the others person negative attitude to customer preferred alternative if

the customer minds is towards to negativism, the closer a customer to another

customer, the easier other customer to change the customer purchases intention .

2.1.4.1.5 Post purchases Behavior

Post purchases behavior is the last step from buying decision. This process

is about telling more about consumer experiences and the felling after buy the

product. The experience after buy the product will recall the other brand product

that can be make the next consumer decision. In this step, the marketer must make

sure that the customer get all the benefit from this product and from the services

and feels good about the product. The customer will come back soon if the

consumer get the profit from the benefit from goods or service

19

2.2 Previous Research

Table 2.1 Previous research

Title /

Researcher

Independent Dependent Methodology Research

Result

analyze the

influence of

marketing mix

effectively

towards buying

decision of the

customer KFC

Magelang / S.

Satmoko, T.

Ekowati, B.M.

Setiawan and

A. Intan Sari

(2005)

Marketing

mix (4P’s)

Buying

Decision

Survey price and

place

has an

influence on

purchasing

decisions

consumer

analyzes the

effect, of retail

marketing mix

toward

consumers’

purchasing

decision at

KFC

banyumanik

semarang /

Silvia Arum

and Isnaini

Nurkhayati

(2013)

Marketing

mix (7P’s)

Buying

Decision

Survey Place,

Merchandise,

Price,

Advertising,

Store

Atmosphere,

Service has

an influence

toward

buying

decision.

20

Analysis of

consumer

Purchase

Decision

Process in Fast

food

Restaurant in

KFC Branch

padjadjaran

and bogor

impact on

marketing mix.

/ Yugi

Ramdhani

(2005)

Marketing

Mix (4P’s)

Buying

Decision

Survey People Place

Product has

an influence

toward

buying

decision.

Analysis of

Marketing Mix

Influence

Purchasing

Decisions On

Against

Waroeng Steak

and Shake

(Case study

Waroeng Steak

and Shake

Soekarno -

Hatta, Malang)

/ Andrey Olaf

Yeriko

Panjaitan and

Marketing

Mix (4P’s)

Buying

Decision

Survey Product,

price,

Place,

Promotion

has an

influence

toward

buying

decision.

21

Prof. Dr.

Achmad

(Sudiro, SE.,

ME (2008)

2.3 Theoretical Framework

Independent Variables Dependent variable

Figure 2.1 Theoretical Framework

Sources: Self Construct

From the figure 2.1, the researcher gives the overview of how the research will

be done. There are 7 element from 7’P. Begin with first is price that cans one of

22

factor to buying the product. And second with other factor product, that with good

quality of product, consumer will have intention to buying the product. Third is

place where is the restaurant is, is that restaurant in strategies position to get people

have intention for buying the product in that place. Fourth, there is promotion. Is

the promotion of that restaurant is really good enough to get consumer mind to buy

the product.

Fifth are people. People mean the employee who works in the restaurant. The

employee is diligent or very kind to consumer that can attracts for ta consumer to

come back again to buy their product. Sixth is process. The process is good enough

or does not have a long time to get the consumer food or the services in delivery

services. Seventh is physical evidence. Physical evidence is how the situation is or

the place is good enough to eat in that place by knowing variable that can affecting

buying decision of in president university student, the researcher chose some

number of samples to answer the problem.

2.4 Hypothesis

H1: Product has significant partial influence to the buying decision.

H2: Price has significant partial influence to the buying decision.

H3: Place has significant partial influence to the buying decision.

H4: Promotion has significant partial influence to the buying decision

H5: People has significant partial influence to the buying decision

H6: Process has significant partial influence to the buying decision

H7: Physical Evidence has significant partial influence to the buying decision

H8 Marketing Mix has simultaneous influence to the buying decision

23

CHAPTER III

RESEARCH METHODOLOGY

To maximize this research, researcher will spread the questioner to president

university student. Collect the data and will analysis the data as prefect as possible.

Not just spread the questioner, the researcher will analyzes the place on the spot.

So researcher will know the advantages from this fast food restaurant.

This research methodology chapter is show the step that researcher used and

research method and used in this research. Sampling scheme, process investigation,

select the respondents, and make the questioner, reliability check process, statistical

application, SPSS Test, gathering data and information are the step in this research.

3.1 Research Design

There are two method which can used for many expert or university student to

start the research. There are qualitative and quantitative which have many different

meaning and process both in the result. Quantitative is focused in data, because the

quantitative is about comparison with many kind of sources and many kind of

sources. Qualitative is focused in number, because quantitative is used statistical

tools and all about number. Quantitative and qualitative are have different ways but

have it is advantages and disadvantages.

Qualitative method is study is used with natural setting which can make the

reader and the researcher is easily to understand the meaning from the research

(Denzin and Lincoln. 2005). Qualitative method is usually to use which can give

the understanding for the reason and motivating. To show the problem and make

the hypothesis for future researcher, and to show the related public opinion. In this

method can be express by number.

24

Quantitative method is the scientific approach to managerial decision making;

whim, emotions, and guess work are not part of the quantitative analysis approach

(Render ET all; 2009). Quantitative method is about to prove the last theories and

developed from last research. In this quantitative method is make the researcher

must fully understand about the problem, analyzing, collecting all the data that the

researcher got. In this research, the researcher use quantitative method.

3.2 Research Framework

In this will show the step that has been used in this researcher. This research

started with determined the objective of this research. And the problem will be

occur in that objective. After the researcher found the problem, then it continued

by identified the theory to be used in this research as the basic theory to determine

the variable for making the question. After that with found the topic that will be a

basic for a good title for this research.

The next step for this research is construct the questionnaire which will used

for pretest in order to know whether the questionnaire is valid and reliable to

analyze. The questionnaire will be distributed to the sample respondent. Once the

statements are valid and reliable, it will distributed to respondent. The result of

questionnaire is still in raw data, and computed to Microsoft excel in order to

convert the average of each variable data.

The last step in this research is the data that the researcher got, was process

used SPSS. V.16.0 with regression analysis method. The regression method that is

presented by SPPS will Test the normality, Multicolinearity, Heterocedascity,

autocorrelation, T-test, F-test, R-square among the data of independent variables

and dependent variable and it will show the relationship between the independent

variables and dependent variable as the result of this research.

25

Figure 3.1 Research Framework

Sources: Construct by the researcher.

26

3.3 Sampling Design

Sample size or the number of samples taken will become an important issue in

quantitative research analysis. In this research, the researcher will used Purposive

Sampling for the sampling technique. Purposive technique is a technique to so

choose the sample with some criteria (Arum, S & Nurkhayati, I; 2013). The criteria

for the target respondent in this research is the President University student who

already visit and bought KFC Lippo Cikarang product. Thus, the amount of

population is cannot be calculated. According to Sekaran (2010) that “the

Determine of sample size number be among 30 to 500 elements”. In this research,

the researcher will chose 150 respondent to answers the questioner.

3.4 Research Instrument

Table 3.1 Dependent and independent variables in this research

No Variable Indicators Scale

1 Buying

Decision (Y)

I buy KFC because its taste

good

Likert

I buy KFC because price of

KFC product is achieveable

I buy KFC because near my

home or entetaiment place

I buy KFC because there is

some discount

I buy KFC because the staff is

nice and friendly

I buy KFC because the process

in administration is fast

I come to KFC because the

place is cool

27

Table 3.1 Dependent and independent variables in this research (count)


2 Product (X1)

The taste of KFC's product is

good

Likert

There are many menu option in

KFC

KFC product use clean tools to

provide the menu

Product in KFC is all fresh

3 Price (X2)

The price of KFC in resonable

Price

Likert

The price is average with the

taste of KFC

The price is affordable

The price of the combo menu is

good

4 Place (X3)

The place near your home

Likert The place is near entertaiment

place

5 Promotion (X4)

There adverting KFC in your

town is good

Likert There are attractive brocure

about KFC

There are many discount in

KFC

6 People (X5)

The staff of KFC is caring

Likert The staff of KFC is Friendly

The teamwork of KFC is good

28

Table 3.1 Dependent and independent variables in this research (count)


7 Process (X6)

The is no long queue in KFC

Likert They Make the order is fast

The menu that we order is right

8 Physical

evidence (X7)

The place is intersting

Likert

The Staff use uniform

The menu board is nice

The table for we eat is good

There are AC room in KFC

Sources: Self Construct

3.5 Validity & Reliability

3.5.1 Validity Test

The validity test used to know how the question from the questioner is have

the effect to the study. The validity test can assist the researcher make sure the each

variable of the questioner is the right variable for the research.

The Pearson’s correlation coefficient is to help which question is valid for

the researcher. The Pearson’s correlation coefficient is bases on actual values from

x and y. there are the equation from Berenson, leverson & Timothy C. Krehbiel

(2011).

𝑟 = 𝑁 ∑ 𝑋 𝑌 − ( ∑ 𝑋 ) ( ∑ 𝑌)

√𝑁 ∑ 𝑋2 √𝑁 ∑ 𝑌2 − ( ∑ 𝑌

Figure 3.2 Validity test formula

29

Which:

N: the number of the paired observations

∑X: The X variable summed

∑Y: The Y variable summed

∑X2: The X variable squared and the squares summed

(∑ X) 2: The X variable summed and the sum squared

∑ Y2: The Y variable squared and the squared summed

(∑ Y) 2: The y Variable summed and the sum squared

∑ XY: the sum of the product of X and Y

Variable which have high positive correlation with total score means that

variable have high validity (Sugiyono; 2006). The minimum requirements to

qualify are if r <0.5. the minimum score for variable to be valid if the total

respondent is 30 respondent and use the significant level of validity test is 0.05, r ≤

0.361 (Sugiyono, 2006)

3.5.2 Reliability Test.

Reliability is a characteristic of measurement concerned with accuracy,

precision, and consistency (Cooper and Schindler; 2006). Reliability test is useful

to know the measurement level and relatively consistence which the measurement

is done. According to Lind, D, and A 2002 reliability. Reliability is an index that

show the useful the instrument for the research.

𝛼 = Ν ∙ ṝ

1 + (𝑁 − 1) ∙ ṝ

Figure 3.3 Reliability test formula

Which:

Α: instrument reliability coefficient

Ṝ: mean correlation coefficient between variables

N: number of questions.

30

To achieve the moderate scale reliability, the reliability index or cronbach’

alpha must up to 0.60 (Malhotra; 2010). The variable that cannot be accept is where

the Cronbach alpha level is lower than 0.60.

3.6 Data Collection Procedure

There are two type of data collection for the researcher to search the data.

First is primary data and second is secondary data. Primary data is the data that

researcher need for the research as primary data. The primary data collected and

can gather all data with the result of the questioner the give to respondent who

related the research. Secondary data is also the data that researcher need for the

data as the secondary data. The secondary data collected and can gather by internet,

journal, books and any sources can support the research.

3.6.1 Primary Data

Primary data is the data is get from the researcher by any method to know

the data accurately (Donald Currie; 2005). The other expert defined that primary

data is data which get by the researcher for their research occupation (Malhotra and

Peterson; 2010). Their definition is deference but with one mean, there is data

which get by the researcher accurately with any method.

One of the method is questioner. The questioner is design by the researcher

with basic from research that already made. There are 2 part from questioner to

complete the data. There are demographic and the other that related with variable

that the researcher use. The first part is demographic that consist with the profile

with the respondent like name, major, and nationality. The second part is the

variable that related with the research. For this researcher is use marketing mix

(product, price, place, promotion, process, people, physical evidence) and customer

buying decision.

3.6.2 Secondary data.

Secondary data is data that collected for research purpose (Malhotra and

Peterson; 2002). There are many sources that can be get as the secondary data.

31

Internet, journal, books, interview, articles, and anything besides blog and

Wikipedia.

For the secondary data. The researcher use interview method, this method

is used to know the problem in the KFC Lippo Cikarang. In this this research, the

researcher also put the detail of the interview in the last chapter.

3.6.3 Measurement Scale

The Likert scale is the most popular that use in many research of the rating

scale for the questioner. Resins Likert was the developer the Likert scale. The rating

is about the level of agreement for the respondent with the question of the

questioner. According to Cooper and Schindler the respondent from the respondent

is with the numerical score to standard overall attitude.

The researcher use five Likert scale as the meaning of the result where the

data is a lot of number and chose (Malhotra; 2010)

Table 3.2 Relative grading statement

Relative Grading Statement Score

Strongly Agree 5

Agree 4

Neutral 3

Disagree 2

Strongly Disagree 1

Sources: Malhotra; 2010

If the result of mean for the answer of variable is between 3 – 5, it is mean

the spreading of answer in that variable is from neutral to agree. If the result of

mean for the answer of variable is between 1 – 3, it is mean the spreading of answer

in that variable is from neutral to disagree.

32

3.7 Testing hypothesis

The hypothesis are below this statement:

Ho: β1 = 0: Product partially no has significant influence to the buying decision.

Ha: β1 ≠ 0: Product partially has significant an influence to the buying decision.

Ho: β2 = 0: Price partially has no significant influence to the buying decision.

Ha: β2 ≠ 0: Price partially has significant an influence to the buying decision.

Ho: β3 = 0: Place partially has no significant influence to the buying decision.

Ha: β3 ≠ 0: Place partially has significant an influence to the buying decision.

Ho: β4 = 0: Promotion partially has no significant influence to the buying decision.

Ha: β4 ≠ 0: Promotion partially has significant partially an influence to the buying decision

Ho: β5 = 0: People partially has no significant influence to the buying decision.

Ha: β5 ≠ 0: People partially has significant partially an influence to the buying decision

Ho: β6 = 0: Process partially has no significant influence to the buying decision.

Ha: β6 ≠ 0: Process partially has significant partially an influence to the buying decision

Ho: β7 = 0: Physical evidence partially has no significant influence to the buying decision.

Ha: β7 ≠ 0: Physical evidence partially has significant an influence to the buying decision

Ho: β8 = 0: Marketing Mix simultaneously has no influence to the buying decision

Ha: β8 ≠ 0 Marketing Mix simultaneously has s an influence to the buying decision

3.7.1 Multiple Regressions

The researcher use multiple regression in this research. Multiple regression

models is a practical extension of simple regression in which it allow user to build

a model with several independent variables (Stair, JR and Hanna; 2009).

𝑌 = 𝐵0 + 𝐵1𝑋1 + 𝐵2𝑋2 + 𝐵3𝑋3 + 𝐵4𝑋4 + 𝐵5𝑋5 + 𝐵6𝑋6 + 𝐵7𝑋7 + 𝜀

Figure 3.4 multiple regression formula

Which:

Y = Buying Decision (Dependent Variable)

B0 = intercept

B1 – B7 = Regression Coefficient

X1 = Product (Independent Variable)

33

X2 = Price (Independent Variable)

X3 = Promotion (Independent Variable)

X4 = Place (Independent Variable)

X5 = People (Independent Variable)

X6 = Process (Independent Variable)

X7 = Physical Evidence (Independent Variable)

ε = Random Error

3.6.2 Classical Regression Assumptions

There are four test to pass the regression, there are normality test,

Multicollinearity test, heteroscedasticity test and autocorrelation test.

3.6.2.1 Normality Test

Normality test is test that to know the data is well. The normality test will

use SPSS software. With SPSS software the result is must be accurate. The

graphical method will be used for the normality test. In other word, normality test

is use to test the regression model between Independent and dependent variable is

distribute well or not; because the regression model must be normal or almost

normal (Priyatno; 2008).

The easy way to know the regression is normal or not, the data must be

follow the diagonal line or histogram graph.The graphical method show the

distribution from random variable and compare the distribution to theoretical plot.

3.6.2.2 Multicollinearity Test

Multicollinearity test is useful for the researcher to know the about each

independent variables is have related with the other in multiple regression.

According to Priyatno (2008), Multicollinearty test is a test to see the correlations

between Dependent and independent variables. Multicollinearity test is test that

must be avoid to all researcher, because the Multicollinearity test is not good for

each variable that related each other. To know the level of Multicollinearity,

34

Variance Inflation Factor (VIF) is used to know the level. Usually VIF is used to

know how high the level of variance of coefficients to increase if there are no

correlation between each independent variables.

𝑉𝐼𝐹𝜅 = 1

1 − 𝑅 2𝑘

And 𝑅2 = 𝑠𝑠𝑟

𝑠𝑠𝑡

Figure 3.5 Multicollinearity Test formula

Which:

𝑅 2𝑘

= the R2 value obtained by regressing the k th predictor on the remaining

predictors.

𝑆𝑆𝑅 = regression sum of squares

𝑆𝑆𝑇 = total sum of squares

With the formula above, the researcher can see the correlation by see the

result of VIF. Is the result is above than 10, its mean two variable is have a big

correlation between each of them, and the researcher must deleted the variable from

multiple regressions. If the result of VIF is less than 10, it is means the data is ok.

3.6.2.3 Heteroskedasticity Test

The function of Heteroskedasticity test is to know the data of the research

is have a divergence each variable from regression model (Priyatno; 2008).

Heteroskedasticity test is can be seen from the scatter plot by looking at the

distribution toward the predicated value. The data questioner is spread randomly

without any specific pattern, then the data pass heteroskedasticity test.

3.6.2.4 Autocorrelation Test

Autocorrelation test is a have a purpose, the purpose is to know the correlation

between the Residual from an observation to another observation (Priyatno; 2008).

35

To know the correlation can been seen with the result of Durbin Watson Method.

The result is good enough or there is no autocorrelation problem, if the output of

Durbin Watson is between -2 to 2.

3.6.3 F Test

F test is used to know the influence or relationship between x variable

(independent) and y (dependent) variable (Priyatno; 2008). F test works for get the

conclusion regarding the status between independent and dependent variables.

There is a formula that will used for this study that can help to find the F test.

𝐹 = ( 𝑅2/ 𝐾)

[(1 − 𝑅2)/(𝑛 − 𝑘 − 1)]

Figure 3.6 F-test formula

Which:

F = Statistic test for F distribution

R2 = confident of distribution

K = number of independent variables in the model

N = number of sample

The level of significant of this study is α = 0.05. Ho is accepter the value of

the f test is higher than 0.05 and the ho reject if less than 0.05.

Ho: β1 = β2 = 0, if significant F > 0.05, accept Ho

Ha: at least there is one β ≠ 0, if significant F > 0.05, reject Ho

3.6.4 T Test

T Test is used to know the influence between each independent variables to

dependent variable (Priyatno; 2008). The level significance is α is 0.05. Ho is

rejected if the value of T Test is < 0.05. And Ho is accept is the value of T test >

0.05.

Ho: βi = 0; if the significant T > 0.05, accept Ho

Ha: βi ≠ 0, if the significant T < 0.05, reject Ho

36

CHAPTER IV

ANALYSIS OF DATA AND INTERPRETATION OF

RESULT

This chapter is the important chapter for the research. In this chapter. Public

can see the history of the company, the result for the research. The history of

company will discuss all profile about the PT. Fast Food Indonesia and KFC Lippo

Cikarang. The result of the research is divide into 2 result. First is demographic

result, and second is the analysis result from the research.

4.1 Company Profile

PT Fast Food Indonesia Tbk, the only franchise holder of KFC brand in

Indonesia, was established in 1978 by the Gelael Family. The very first opening

KFC restaurant outlet at Jalan Melawai in October 1979 .The PT Fast food

Indonesia became a franchisee of KFC brand. The successful opening of the first

outlet paved the way for the opening of more additional outlets in Jakarta and

expansion of its regional coverage to include other major cities in Indonesia, like

Bandung, Semarang, Surabaya, Medan, Makassar, and Manado. With the

continuous success in building the brand, the name KFC became a by-word in the

QSR business and was instilled in the mind of consumers becoming the most

dominant fast food restaurant at Indonesia. The Company’s expansion initiatives

were reinforced by Salim Group in 1990 as one of the major shareholders.

The Company was licensed to use KFC brand by Yum! Asia Franchise Pte

Ltd, which is part of Yum! Restaurants International (YRI). YRI itself is a

company under Yum! Brands Inc. Yum! Brands Inc. used to be the franchise owner

of two other brands, A&W and Long John Silvers but was dropped by the end of

2011. However, even with the exclusion of these two brands, the Yum! Group is

still regarded as the largest fast food chain in the world and the best in providing

37

branded restaurant choices worldwide. Furthermore, in the chicken-based fast food

chain, however, no other brand can outclass KFC.

With the Company’s 34-year experience of successful operation and

continuous development growth, KFC brand is undeniably the nation’s market

leader in the fast food chain of restaurants. It has been expanding continuously

nationwide, making its presence felt not only in tough metropolitan areas but in

secondary cities as well. With its emphasis on free-standing outlets during the last

five years, the Company provides more flexibility in operating hours with full

facilities catering to consumers’ needs and preferences. Continuous renovation is

undertaken to provide new image and appearance in line with Company’s

objective. At the end of 2012, the Company has a total of 441 outlets spread over

98 cities and covering 32 of the 33 provinces nationwide. The Company’s total

workforceat the end of the year is 17,004 with sales turnover of more than Rp3.741

trillion. The Company issued 5- year maturity bonds in October 2011 with an

annual coupon rate of 9.5 percent payable quarterly and always up-to-date on its

interest payments. The funds were basically used for funding new store openings,

renovation activities on existing stores, and development of new or renovation of

existing warehouses.

KFC Lippo Cikarang is built in 1990. This KFC is stand for a long time in

Lippo Cikarang. Many Competitor is come near Lippo Cikarang. The leader of

KFC is not afraid. The leader believe, KFC always some uniqueness in their

product. There are always competitor, the problem that we must have idea to beat

the competitor.

4.1.1 Vision, Mission, Objective

VISION

Always is the No.1 QSR (Quick Service Restaurant) brand in Indonesia

and maintain this market leadership by being the most modern and favorite

restaurant in terms of product, value, service, and assets.

38

MISSION

Strengthening KFC brand image through innovative continuously

providing unparalleled consumers’ dining experience and consistently providing

quality products, services, and assets suited to consumers’ changing needs and

taste.

OBJECTIVE

Provide the most modern and trendy store appearance and design offering

good ambiance with the most comfortable seating by continuously undertaking

renovation and serving top quality food suited to consumers’ preferential taste with

speed and hospitality beyond compare.

4.1.2 Corporate Value

A. The Company’s corporate culture “We are the Owners of KFC” is instilled in

every employees’ mind to create an extraordinary sense of belonging in order

to produce a high level of performance and excellence in all their undertakings,

particularly in providing top quality food with speed and hospitable service.

B. Maintain good relationship and provide consumer satisfaction beyond their

expectation by putting CMS (CHAMPS Management System) into action in

every restaurant to assure restaurant Cleanliness, provide great Hospitality in

serving consumers, ensure Accuracy in order-taking and packing, assure high

level of Maintenance, ensure consistency in producing quality Products, and

assure Speed of service is always executed.

C. Innovation does not stop only in developing new ideas, approaches, and

strategies in achieving one’s objective, but also encompasses a change in

mindset starting from oneself in order to successfully effect changes.

39

4.1.3 Corporate Strategy

A. Develop and instill a deep and strong culture within the organization where

everyone makes a difference by being innovative and always thinking “out of

the box”.

B. Create a “Consumer and Sales Mania” mindset with high intentionality in

providing consumer satisfaction beyond expectation.

C. Provide an exceptional competitive brand differentiation through innovative

ideas and strategies.

D. Develop continuity in people and process with solid focus on competency and

capability development.

4.2 Data Result Analysis

4.2.1 Validity and Reliability

4.2.1.1 Validity test

Table 4.1 Validity test From Pre-test

Items r table r compute Result

product1 0.361 0.785 valid




price1 0.361 0.799 valid




place1 0.361 0.914 valid

place2 0.361 0.897 valid

promotion1 0.361 0.776 valid



people1 0.361 0.860 valid

40



process1 0.361 0.525 valid



physical1 0.361 0.306 invalid

physical2 0.361 0.711 valid




Y1 0.361 0.697 valid

Y2 0.361 0.886 valid

Y3 0.361 0.930 valid

Y4 0.361 0.792 valid

Y5 0.361 0.886 valid

Y6 0.361 0.930 valid

Y7 0.361 0.930 valid

Sources: SPSS V. 16.0

In this survey, the researcher use the answer from 30 respondent as the

sample of validity test. In table 4.1 above that show from 31 question that

researcher use for research, there are one question that got the criterion as invalid

question which mean the researcher must remove from research. Like in chapter 3

about validity test, the minimum score for variable to be valid if the total respondent

is 30 respondent and use the significant level of validity test is 0.05, r ≤ 0.361

(Sugiyono, 2006). From table 4.1 above shown that the question from physical 1

shown the r is 0.306, it is mean the question for physical1 must be removed from

the question because 0.306 < 0.361. The other questioner except physical1 is valid

because R > 0.361.

41

4.2.1.2 Reliability

Table 4.2 Reliability test from pre-test (Product)

Reliability Statistics

Cronbach's

Alpha N of Items

.705 4

Sources: SPSS V.16.0

To know the reliability from variable, the cronbach’s alpha of each variable

must be > 0.600 (Malhotra; 2010). From table 4.2 show that the cronbach’s alpha

of product is 0.705. Which means the variable for product is reliable, because 0.705

> 0.600.

Table 4.3 Reliability test from pre-test (Price)


Cronbach's

Alpha N of Items

.743 4




of price is 0.743. Which means the variable for price is reliable, because 0.743 >

0.600.

42

Table 4.4 Reliability test from pre-test (Place)


Cronbach's

Alpha N of Items

.779 2




of place is 0.779. Which means the variable for place is reliable, because 0.779 >

0.600.

Table 4.5 Reliability test from pre-test (Promotion)


Cronbach's

Alpha N of Items

.704 3




of promotion is 0.704. Which means the variable for promotion is reliable, because

0.704 > 0.600.

43

Table 4.6 Reliability test from pre-test (People)


Cronbach's

Alpha N of Items

.653 3




of people is 0.653. Which means the variable for people is reliable, because 0.653

> 0.600.

Table 4.7 Reliability test from pre-test (Process)


Cronbach's

Alpha N of Items

.629 3




of process is 0.629. Which means the variable for process is reliable, because 0.629

> 0.600.

44

Table 4.8 Reliability test from pre-test (Physical Evidence)


Cronbach's

Alpha N of Items

.752 4




of physical evidence is 0.752. Which means the variable for physical evidence is

reliable, because 0.752 > 0.600.

Table 4.9 Reliability test from pre-test (Buying Decision)


Cronbach's

Alpha N of Items

.944 7




of buying decision (dependent variable) is 0.944. Which means the variable for

buying decision (dependent variable) is reliable, because 0.944 > 0.600.

45

4.2.2 Descriptive Statistics

4.2.2.1 Demographic

Table 4.10 Demographic View (Batch)

Batch Result Percentage

2010 55 36%

2011 28 19%

2012 46 31%

2013 21 14%

Total 150 100%

Sources: Microsoft Excel 2013

Figure 4.1 Demographic View (Batch)

Sources: Microsoft excel 2013

Table 4.10 and Figure 4.1 shown the percentage of respondent base on batch

each respondent. The big percentage of respondent has own by batch 2010 with

36% and batch 2012 with 31%. Batch 2011 just 19% and batch 2013 just 14%.

46

Table 4.11 Demographic View (Nationality)

Nationality Result Percentage

China 25 25%

Indonesia 88 58%

Vietnam 37 17%

Total 150 100%


Figure 4.2 Demographic View (Nationality)


Base on table 4.11 and figure 4.2, the costumer of KFC Lippo Cikarang

distributed from three nationality there are Indonesia, china, and and Vietnam.

From Indonesia there are 88 people and 58% from 150 respondent. From China

student there are 25 people and 17% from 150 respondent. From Vietnam student

there are 37 people and 25% from 150 respondent.

Table 4.12 Demographic View (Major)

Major Result Percentage

International Business 84 25%

Banking and Finance 49 58%

Business Administration 12 17%

Accounting 4 100%

Public Relation 1 100%

Total 150 100%

47


Figure 4.3 Demographic View (Major)



distributed from five major there are International Business, Banking and Finance,

Business Administration, Accounting, and Public Relation. From international

business there are 84 people and 56% from 150 respondents. From banking and

finance there are 49 people and 32% from 150 respondents. From business

administration there are 12 people and 8% from 150 respondents. From accounting

there are 4 people and 3% from 150 respondents. From public relation there are 1

people and 1% from 150 respondents.

Table 4.13 Demographic View (Gender)

Gender Result Percentage

Female 78 48%

Male 72 52%

Total 150 100%


48

Figure 4.4 Demographic View (Gender)



distributed from two gender there are male, and female. From male there are 72

people and 48% from 150 respondents. From banking and finance there are 78

people and 52% from 150 respondents.

4.2.2.2 Descriptive of All Variable

Table 4.14 Mean and Standard Deviation (Product)

Descriptive Statistics

N Mean Std. Deviation

The taste of KFC's product is good 150 3.4867 1.03455

There are many menu option in KFC 150 3.6000 1.09911

KFC product use clean tools to provide the menu 150 3.5133 1.07277

Produck in KFC is all fresh 150 3.4933 1.02811

Valid N (listwise) 150


Base on table 4.15 the result of mean from question 1-4 is 3.4 -3.6. It is

mean almost all respondent say from neutral to agree for all question regarding to

the product. On table std. deviation is more than 1, from question regarding product.

It is mean the spreading of answer from agree, disagree and neutral is very

dispersed.

49

Table 4.15 Mean and Standard Deviation (Price)



The price of KFC in resonable Price 150 2.7067 1.16749

The price is average with the taste of KFC 150 2.9133 1.08025

The price is in our pocket 150 2.9933 1.04590

The price of the combo menu is good 150 2.7733 1.09389




mean almost all respondent say from disagree to neutral for all question regarding

to the price. On table std. deviation is more than 1, from question regarding price.


dispersed.

Table 4.16 Mean and Standard Deviation (Place)



The place near your home 150 2.9133 1.11088

The place is ner entertaiment place 150 2.6733 1.16144



Base on table 4.17 the result of mean from question 1 and 2 is 2.6 -2.9. It is

mean almost all respondent say from disagree to neutral for all question regarding

to the place. On table std. deviation is more than 1, from question regarding place.


dispersed.

50

Table 4.17 Mean and Standard Deviation (Promotion)



There adverting KFC in your town is good 150 3.6533 1.05542

There are many brocure about KFC 150 3.5467 1.06555

There are many discount in KFC 150 3.0000 1.09299





the promotion. On table std. deviation is more than 1, from question regarding

promotion. It is mean the spreading of answer from agree, disagree and neutral is

very dispersed.

Table 4.18 Mean and Standard Deviation (People)



The staff of KFC is caring 150 3.9400 .82925

The staff of KFC is Friendly 150 3.8733 .73546

The teamwork of KFC is good 150 2.9267 1.20456




mean almost all respondent say from neutral to agree for question regarding to the

people. On table std. deviation is more than 1, from question regarding people. It

is mean the spreading of answer from agree, disagree and neutral is very dispersed.

51

Table 4.19 Mean and Standard Deviation (Process)



The is no long queue in KFC 150 3.5000 .99495

They Make the order is fast 150 3.6533 1.05542

The menu that we order is right 150 3.4933 1.02811





the process. On table std. deviation is more than 1, from question regarding process.


dispersed.

Table 4.20 Mean and Standard Deviation (Physical Evidence)



The Staff use uniform 150 3.5800 .96426

The menu board is nice 150 3.7000 1.04753

The table for we eat is good 150 3.6467 1.05000

There are AC room in KFC 150 3.6333 .99270





the physical evidence. On table std. deviation is more than 1, from question

regarding physical evidence. It is mean the spreading of answer from agree,

disagree and neutral is very dispersed.

52

Table 4.1 Mean and Standard Deviation (Buying Decision)


N Mean

Std.

Deviation

I buy KFC because its taste good 150 3.6467 1.05000

I buy KFC because price of KFC product is cheap 150 2.8867 1.13242

I buy KFC because near my home or entetaiment

place 150 2.9667 1.16098

I buy KFC because there is some discount 150 3.8733 .73546

I buy KFC because the staff is nice and friendly 150 3.5133 1.07277

I buy KFC because the process in administration is

fast 150 3.5467 1.06555

I come to KFC because the place is cool 150 3.4933 1.02811





the buying decision. On table std. deviation is more than 1, from question regarding

buying decision. It is mean the spreading of answer from agree, disagree and neutral

is very dispersed.

53

4.2.3 Classical Regression Assumptions

4.2.3.1 Normality Test

Figure 4.5 Normality histogram


Figure 4.6 Normality Plot

Sources: SPSS. V. 16.0

54

Normality test is use to test the regression model between Independent and

dependent variable is distribute well or not; because the regression model must be

normal or almost normal (Priyatno; 2008). The easy way to know the regression is

normal or not, the data must be follow the diagonal line or histogram graph. The

graphical method show the distribution from random variable and compare the

distribution to theoretical plot.

In figure 4.5 above. The histogram show the data normally distributed. The

histogram in figure 4.5 follow the line which means the data is normal distributed.

There is other way to see the data is normal, from figure 4.6 above the diagonal line

is close with the cross line. The data is close with the cross line which means the

data is normal.

4.2.3.2 Multicollinearity Test

Table 4.22 Multicollinearity Table

Collinearity Statistics

Variable Tolerance VIF

Product .662 1.510

Price .690 1.450

Place .930 1.076

Promotion .465 2.152

People .478 2.094

Process .854 1.171

Physical evidence .976 1.024

Source: SPSS V. 16.0

According to Priyatno (2008), Multicollinearty test is a test to see the

correlations between Dependent and independent variables. The result of

Multicollinearity test must be lower than 10, because the Multicollinearity test is

55

not good for each variable that related each other or the result must not higher than

10. The result for multicollinearty for Product, price, place, promotion, people,

process, and physical evidence are all lower than 10 which means the data of this

reteach are pass the multicollinearty or in this regression there is no

multicollinearty exist.

4.2.3.2 Heteroskedacity Test

The function of Heteroskedasticity test is to know the data of the research

is have a divergence each variable from regression model (Priyatno; 2008).

Heteroskedasticity test is can be seen from the scatter plot by looking at the

distribution toward the predicated value. The data questioner is spread randomly

without any specific pattern, then the data pass heteroskedasticity test.

In figure 4.7 above, the scatter plot show the data of this research is spread

randomly. The data in figure 4.7 is not make a pattern or logo which make the data

of this research there is no heteroskedasticity between independent variables with

dependent variable.

Figure 4.7 Heteroskedacity scatter plot


56

4.2.3.3 Autocorrelation Test

Autocorrelation test is a have a purpose, the purpose is to know the

correlation between the Residual from an observation to another observation

(Priyatno; 2008). To know the correlation can been seen with the result of Durbin

Watson Method. The result is good enough or there is no autocorrelation problem,

if the output of Durbin Watson is between -2 to 2. Form Table 4.23, the result of

Durbin Watson is 1.954. It is means there is no autocorrelation Problem from the

data of questioner.

Table 4.23 Durbin Watson Table


4.2.4 F test and T-test

4.2.3.1 F-Test

F test is used to know the influence or relationship between x variable

(independent) and y (dependent) variable (Priyatno; 2008).

Ho: β8 = 0 is accepted if the value of F is greater than 0.05 (Marketing Mix has

simultaneously no influence to the buying decision.)

Ha: β8 ≠ 0 is accepted if the value of F is less than 0.05 (Marketing Mix has simultaneously

an influence to the buying decision)

Durbin-Watson

1.954

57

This result of this research use SPSS V. 16.0 for F-Test is shown in table below

Table 4.24 F-Test table

ANOVAb

Model Sum of Squares df Mean Square F Sig.

1 Regression 104.661 7 14.952 48.694 .000a

Residual 43.601 142 .307

Total 148.262 149

a. Predictors: (Constant), physical, product, place, price, process, people,

promotion

b. Dependent Variable: y


The requirement significant value for F test is must be less than 0.05. It can

be seen that the significant value of the F test is 0.000. Which mean the significant

value is less than 0.05 value. From table 4.23 above, marketing mix of 7p (product,

price, place, promotion, people, process, and physical evidence) simultaneously has

an influence to the buying decision. This research will accept Ha and reject Ho

4.2.3.1 T-Test

T Test is used to know the influence between each independent variables to

dependent variable (Priyatno; 2008). The level significance is α is 0.05. The hypotheses

is following:

A. Ho: β1 = 0: Product has significant partially no influence to the buying decision.

Ha: β1 ≠ 0: Product has significant partially an influence to the buying decision.

B. Ho: β2 = 0: Price has significant partially no influence to the buying decision.

Ha: β2 ≠ 0: Price has significant partially an influence to the buying decision.

C. Ho: β3 = 0: Place has significant partially no influence to the buying decision.

Ha: β3 ≠ 0: Place has significant partially an influence to the buying decision.

D. Ho: β4 = 0: Promotion has significant partially no influence to the buying decision.

Ha: β4 ≠ 0: Promotion has significant partially an influence to the buying decision

58

E. Ho: β5 = 0: People has significant partially no influence to the buying decision.

Ha: β5 ≠ 0: People has significant partially an influence to the buying decision

F. Ho: β6 = 0: Process has significant partially no influence to the buying decision.

Ha: β6 ≠ 0: Process has significant partially an influence to the buying decision

G. Ho: β7 = 0: Physical evidence has significant partially no influence to the buying

decision.

Ha: β7 ≠ 0: Physical evidence has significant partially an influence to the buying

decision

Table 4.25 T-Test table

Model

Unstandardized Coefficients Standardized Coefficients

t Sig. B Std. Error Beta

1 (Constant) -2.020 .464 -4.355 .000

product .183 .062 .166 2.976 .003

price -.059 .068 -.047 -.861 .390

place -.050 .067 -.035 -.740 .460

promotion .159 .084 .127 1.899 .060

people .421 .066 .418 6.344 .000

process .451 .101 .414 8.415 .000

physical .100 .062 .074 1.600 .112

a. Dependent Variable: y


From table 4.24 that show the significant value each variable. Here is the

result for each variable.

A. Product from marketing mix has significant value is 0.003, which less than 0.5.

That value means that product partially has significant influence to buying

decision and Ho is rejected and Ha is accepted from the hypothesis.

B. Price from marketing mix has significant value is 0.390, which greater than 0.5.

That value means that price partially has no significant influence to buying

decision and Ha is rejected and Ho is accepted from the hypothesis.

59

C. Place from marketing mix has significant value is 0.460, which greater than 0.5.

That value means that place partially has no significant influence to buying

decision and Ha is rejected and Ho is accepted from the hypothesis.

D. Promotion from marketing mix has significant value is 0.060, which greater

than 0.5. That value means that promotion partially has no significant influence

to buying decision and Ha is rejected and Ho is accepted from the hypothesis.

E. People from marketing mix has significant value is 0.000, which less than 0.5.

That value means that people partially has significant influence to buying


F. Process from marketing mix has significant value is 0.000, which less than 0.5.

That value means that process partially has significant influence to buying


G. Physical evidence from marketing mix has significant value is 0.112, which

greater than 0.5. That value means that physical evidence partially has no

significant influence to buying decision and Ha is rejected and Ho is accepted

from the hypothesis.

From all result above. In this research there are 3 factor from marketing mix

which partially has influence to President University student buying decision.

There are Product, people, and process which partially influence to President

University student buying decision. 4.2.5

4.2.5 Multiple Regression Model

Multiple regression models is a practical extension of simple regression in

which it allow user to build a model with several independent variables (Stair, JR

and Hanna; 2009). There are a lot independent variables that used for this research,

because the research use multiple regression model in order to explain the

correlation between independent and dependent variables.

𝑌 = 𝐵0 + 𝐵1𝑋1 + 𝐵2𝑋2 + 𝐵3𝑋3 + 𝐵4𝑋4 + 𝐵5𝑋5 + 𝐵6𝑋6 + 𝐵7𝑋7 + 𝜀

In table 4.25 show the factor that particularly influence to dependent

variable. There are product people and process which influence to President

University Student buying decision process.

60

Table 4.26 Significant Table

Model

Unstandardized Coefficients Standardized Coefficients

t Sig. B Std. Error Beta

1 (Constant) -2.020 .464 -4.355 .000

product .183 .062 .166 2.976 .003

price -.059 .068 -.047 -.861 .390

place -.050 .067 -.035 -.740 .460

promotion .159 .084 .127 1.899 .060

people .421 .066 .418 6.344 .000

process .451 .101 .414 8.415 .000

physical .100 .062 .074 1.600 .112



There are four independent variables that have no influence to buying

decision. There are price, place, promotion and physical evidence.

𝑌 = −2.020 (𝑐𝑜𝑛𝑠𝑡𝑎𝑛𝑡) + 0.183(𝑝𝑟𝑜𝑑𝑢𝑐𝑡) + 0.421 (𝑝𝑒𝑜𝑝𝑙𝑒)

+ 0.451 (𝑃𝑟𝑜𝑐𝑒𝑠𝑠) + 𝜀

4.2.6 Coefficient Determination

Coefficient of determination is used to test the value that indicated how

much suitable the independent variables to dependent variable (Mark et all,

2006). In the coefficient determination will used R2 which reflect the degree of

suitable from independent variables to dependent variable.

61

Table 4.27 Coefficient Determination

Model Summaryb

Model R R Square

Adjusted R

Square

Std. Error of

the Estimate

Durbin-

Watson

1 .840a .706 .691 .55412 1.954

a. Predictors: (Constant), physical, product, place, price, process, people,

promotion



From table 4.26, the value of r show the coefficient of correlation. The value

of R is 0.840, it is means the independent variables have a strong correlation with

dependent variable. The adjusted R square is to know how the independent

variables influence the dependent variable. In table 4.26 the value of adjusted R

square is 0.691, that is means the marketing mix of 7p’s Explained about 69, 1% to

President University student buying decision. And rest of 30, 9% is affecting by

another factor which is not discuss in this research.

4.3 Interpretation of result

The validity test shows the significant each variable all must higher than

0,361. And the result from the validity test is all statement is valid accept one

statement is first statement from Physical evidence variable. The reliability test

show the Cronbach’s alpha value must be higher than 0.6. And all variable is past

the reliability test.

The result of T-test is show the significant each variables in this research.

First is product with significant value is 0.003. Second is price with significant

value is 0.390. Third is price with significant value is 0.460. Fourth is promotion

with significant value is 0.60. Fifth is people with significant value is 0.000. Sixth

is process with significant value is 0.000. The last variable is physical evidence

with significant value is 0.112. The independent variables will partially has

62

influence to dependent variable if the significant of independent variables is lower

than 0.05. Thus there are three are 3 independent variables (marketing Mix 7p’s)

which has influence with dependent variable (Buying Decision) are Product,

people, and process.

The significant value of F-test result must be 0.000 or less than 0.05. The

significant value is show the independent variables has simultaneously influence to

dependent variable. The significant value of F-test is 0.000. Thus, the independent

variables (Marketing Mix 7p’s) has simultaneously influence to dependent variable

(buying Decision)

In regression model. Multiple regression models is a practical extension of

simple regression in which it allow user to build a model with several independent

variables. With the result of T-test, there are three independent variables which

have significant. With that three independent variables, the researcher can build the

multiple regression model. Here is the multiple region model in this researcher. Y=

-2.020 (constant) + 0.183(product) + 0.421 (people) +0.451 (Process) + ε.

In coefficient determination result determination will used R2 which reflect

the degree of suitable from independent variables to dependent variable. From table

4.26, the value of r show the coefficient of correlation. The value of R is 0.840, it

is means the independent variables have a strong correlation with dependent

variable. The adjusted R square is to know how the independent variables influence

the dependent variable. In table 4.26 the value of adjusted R square is 0.691, that is

means the marketing mix of 7p’s affecting about 69, 1% to President University

Student buying decision. And rest of 30, 9% is affecting by another factor which is

not discuss in this research

63

CHAPTER V

CONCLUSION AND RECOMENDATION

This chapter five will discuss about the conclusion and recommendation

form the analysis in chapter four regarding the influence of marketing mix of 7p’s

towards President University Student buying decision. The analysis is to know that

marketing 7p’s has influence in buying decision and which factor who has most

influence on the President University Student buying decision.

5.1 Conclusions

According to Chapter Four about the analysis of 7ps of influence to

President University Student Buying Decision around, here some conclusion that

researcher get:

A. According to T-test result that discuss in chapter four. In T-test can be seen

around seven independent variables in marketing mix 7p’s, there are just three

variable has significant influence to President University Student buying

decision. One of them is Product with significant value 0.003. Same with

research of Andrey and Achmad, product is also have significant influence to

buying Decision.

B. According to T-test result that discuss in chapter four. In T-test can be seen

around seven independent variables in marketing mix 7p’s, price do not have

significant influence to buying decision, Same with research of Yugi, price is

also do not have significant influence to buying Decision

C. According to T-test result that discuss in chapter four. In T-test can be seen

around seven independent variables in marketing mix 7p’s, place do not have

significant influence to buying decision.

D. According to T-test result that discuss in chapter four. In T-test can be seen

around seven independent variables in marketing mix 7p’s, Promotion do not

have significant influence to buying decision, Same with research of Satmoko,

Ekowati, Intan, and Yugi , promotion is also do not have significant influence

to buying Decision

64

E. According to T-test result that discuss in chapter four. In T-test can be seen



decision. One of them is People with significant value 0.000. Same with

research of Silvia and Isnaini, people is also have significant influence to

buying Decision.

F. According to T-test result that discuss in chapter four. In T-test can be seen



decision. One of them is Process with significant value 0.000. Same with

research of Silvia and Isnaini, Process is also have significant influence to

buying Decision.

G. According to T-test result that discuss in chapter four. In T-test can be seen

around seven independent variables in marketing mix 7p’s, physical Evidence

do not have significant influence to buying decision.

H. According to F-Test result which discuss in chapter four. It show that all on

independent variables of marketing mix 7p’s (Product, Price, Place, Promotion,

People, Process, and Physical Evidence) has significant influence to President

University Student buying decision. It can be seen from table 4.23 the F

significant Value. The value of significant is 0.000 which less than 0.05.

I. According to Coefficient determination result which discuss in chapter four.

Marketing Mix 7p’s have influence to buying decision around 69,1 % and 30,9

% was affecting by the other variable.

5.2 Recommendation

In conclusion above show the researcher finding in this research. There are

some possible course of action can be identified. The recommendation and

suggestion for consideration and possible product by PT. Fast food Indonesia with

dealing with their product sales. There some recommendation are made to PT Fast

Food Indonesia:

65

A. Based on conclusion above there are three independent variables which have

influence to buying decision. First is Product. According to this researcher. A

taste is one of President University Student needs. The taste of Fried chicken in

KFC is good that will increase of sales of Product in KFC. It means President

University Student want the good taste of Fried chicken rom KFC and to Hold

the taste of product in KFC to keep and increase the taste of product

B. The second independent variables is people. According to this researcher. An

attitude from the staff is one of President University Student needs. The attitude

from the staff from the diligent want to help the costumer is good that will

increase of sales of Product in KFC. It means President University Student want

the kindness form staff in KFC and to Hold Quality of the people in KFC.

C. The last independent variables is process. According to this researcher. A good

management in administration stuff is one of President University Student

needs. Focus for what customer order and quick process in KFC is good that

will increase of sales of Product in KFC. It means President University Student

want Focus for what customer order and quick process from KFC and to Hold

concentrate for what customer order and quick process in KFC to keep and also

increase the process in administration.

D. In the end the 3 variable from marketing mix 7p’s has to keep increase if the

company want boost their sales. From Product, people, and process, that all will

contribute in case to increase their sales. Give the influence on customer buying

decision around President University student.

5.3 Recommendation for the future study

For the future study, the researcher recommendation to get the higher R

square and all the independent variables will be have influence to dependent study.

Thus, for the future study can start over with other fast food Restaurant.

A future Research can use the other variable to measure the purchasing

decision in KFC. The other variable that the researcher is like brand equity. And

last is the future research can use wider population in different case study.

66

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px

69

APENDIX I

70

Questionnaire

Gender :

Batch :

Nationality :

Major :

Are you ever bought KFC Lippo Cikarang Product: yes no

Keep in mind that the questionnaire thereis no right or wrong answer. Give the

answer that truly represent yourself personally. No answer given will be kept

confidential, therefore give completely honest answers to all statements.

Answer Choices:

SD : Strongly Disagree

D : Disagree

N : Neutral

A : Agree

SA : Strongly Agree

Buying Decision

No Question SD D N A SA

1. I buy KFC because its taste good

2. I buy KFC because price of KFC

product is achievable

3. I buy KFC because near my home or

entetaiment place

4. I buy KFC because there is some

discount

5. I buy KFC because the staff is nice and

friendly

71

6. I buy KFC because the process in

administration is fast

7. I come to KFC because the place is cool

Product


1. The taste of KFC's product is good

2. There are many menu option in KFC

3. KFC product use clean tools to provide

the menu

4. Product in KFC is all fresh

Price


1. The price of KFC in resonable Price

2. The price is average with the taste of

KFC

3. The price is affordable

4. The price of the combo menu is good

Place


1. The place near your home

2. The place is near entertaiment place

72

Promotion


1. There adverting KFC in your town is

good

2. There are attractive brocure about KFC

3. There are many discount in KFC

People


1. The staff of KFC is caring

2. The staff of KFC is Friendly

3. The teamwork of KFC is good

Process


1. The is no long queue in KFC

2. They Make the order is fast

3. The menu that we order is right

Physical Evidence


1. The place is intersting

2. The Staff use uniform

3. The menu board is nice

4. The table for we eat is good

5. There are AC room in KFC

Thank You

73

APPENDIX II

Transcript of Interview

KFC Lippo Cikarang.

25 December 2013

Nara Sumber:

Theo, Shift Leader KFC Lippo Cikarang

Theo: Selamat sore pak, ada yang bisa di bantu?

Researcher: saya Wisnu Pak, mahasiswa dari president University. Bisa Minta

waktu nya pak untuk interview untuk keperluan skripsi saya pak.

Theo: Ok silakan, Tapi jangan terlalu lama.

Researcher: boleh nama nya siapa pak dan bagian apa?

Theo: nama saya theo dari bagian shift leader.

Researcher: bapak di sini kerja sudah berapa lama?

Theo: dari sebelum bapak lahir. Sekitar tahun 1991.

Researcher: apa si pa yang di baganngakan dari KFC Lippo cikarang ini pak.

Theo: kan sudah terlihat jelas dari slogan kami, “jagonya ayam”, ya sudah pasti

Ayam Goreng nya.

Researcher: dari bagian marketing mix pak, seperti product, price, promotion,

place, people, process, and physical evidence, menurut bapak mana pak yang

paling berpengaruh pada KFC Lippo Cikarang?

Theo: Tentu saja product, karena memang kami menjual rasa ayam Goreng yang

sangat special.

Researcher: nahh. Kalo boleh tau siapa aja si.yang biasa makan disini pak?

74

Theo: banyak, seperti keluarga anak muda pegawai. Banyak la pokoknya.

Researcher: kalo begitu banyak juga pak mahasiswa dari president university

yang dating kemari.

Theo: ya banyak la. Perbandingan nya sekitar 50; 50 dengan pegawai dan

keluarga.

Researcher: bagaimana cara bapak mengenaili mahasiswa president university

sama yang bukan pak?

Theo: gampang, kalo mahasiswa president masi muda muda atau remaja, sedang

yang bukan suda terliat tua.

Researcher: okk. Bapak tau pak tentang di buka Mcdonalds baru di jababeka pak?

Theo: tau.

Researcher: ada dampak pada kedatangan mahasiswa president tidak pak sejak

muncul nya Mc. Donalds Jababeka?

Theo: Ada si ada , tapi tidak pengaruh besar, sangat kecil sekali bahkan hamper

tidak terasa.

Researcher:lalu pak menurut bapak kenepa pak mahasiswa president masi mau

datang ke KFC Lippo cikarang ini?

Theo: pasti setiap perusahaan punya keunikan tersendiri, dan dari situlah kami tau

bahwa kami berbeda, walaupun banyak pesaing bermunculan tetap bermunjulan,

kami tidak takut sama sekali.

Researcher: ok d pak terima kasih atas waktu nya dan kesempatan nya, sekarang

saya ingin makan dulu pak.

Theo: ok ok, silakan , dan terima kasi sudah mau dating ke sini

Researcher: sama sama pak. Terima kasih banyak.

75

APPENDIX III

Variables Entered/Removedb

Model Variables Entered Variables Removed Method

1 physical, product, place,

price, pocess, people,

pomotiona

. Enter

a. All requested variables entered.


Model Summaryb

Model R R Square Adjusted R Square

Std. Error of the

Estimate Durbin-Watson

1 .840a .706 .691 .55412 1.954

a. Predictors: (Constant), physical, product, place, price, pocess, people, pomotion


ANOVAb

Model Sum of Squares df Mean Square F Sig.

1 Regression 104.661 7 14.952 48.694 .000a

Residual 43.601 142 .307

Total 148.262 149

a. Predictors: (Constant), physical, product, place, price, pocess, people, pomotion


76

Coefficientsa

Model

Unstandardized

Coefficients

Standardized

Coefficients

t Sig.

Collinearity

Statistics

B Std. Error Beta Tolerance VIF

1 (Constant) -2.020 .464 -4.355 .000

product .183 .062 .166 2.976 .003 .662 1.510

price -.059 .068 -.047 -.861 .390 .690 1.450

place -.050 .067 -.035 -.740 .460 .930 1.076

pomotion .159 .084 .127 1.899 .060 .465 2.152

people .421 .066 .418 6.344 .000 .478 2.094

pocess .451 .101 .414 8.415 .000 .854 1.171

physical .100 .062 .074 1.600 .112 .976 1.024


Collinearity Diagnosticsa

Mode

l

Dimensio

n

Eigenvalu

e

Conditio

n Index

Variance Proportions

(Constan

t)

produc

t

pric

e

plac

e

pomotio

n

peopl

e

poces

s

physic

al

1 1 7.726 1.000 .00 .00 .00 .00 .00 .00 .00 .00

2 .104 8.628 .01 .15 .00 .03 .01 .17 .00 .06

3 .053 12.058 .00 .61 .10 .00 .03 .16 .00 .03

4 .038 14.194 .00 .05 .13 .02 .03 .32 .02 .48

5 .031 15.888 .00 .01 .42 .37 .00 .09 .02 .16

6 .023 18.412 .01 .07 .00 .25 .11 .06 .52 .03

7 .018 20.483 .00 .07 .33 .14 .82 .12 .03 .02

8 .007 32.752 .98 .03 .02 .19 .00 .08 .41 .23


77

Residuals Statisticsa

Minimum Maximum Mean Std. Deviation N

Predicted Value 1.2986 4.6435 2.8905 .83811 150

Residual -1.46269 1.66124 .00000 .54095 150

Std. Predicted Value -1.899 2.092 .000 1.000 150

Std. Residual -2.640 2.998 .000 .976 150


Charts

78

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