THE INFLUENCE OF BRAND AWARENESS, PERCEIVED BRAND QUALITY, BRAND ASSOCIATION AND BRAND LOYALTY TOWARD CUSTOMER PURCHASE DECISION TO CHOOSE GARUDA INDONESIA AIRLINES (CASE STUDY: CUSTOMER GARUDA INDONESIA IN JABODETABEK)
i
THE INFLUENCE OF BRAND AWARENESS, PERCEIVED BRAND QUALITY, BRAND ASSOCIATION AND BRAND LOYALTY TOWARD CUSTOMER PURCHASE
DECISION TO CHOOSE GARUDA INDONESIA AIRLINES (CASE STUDY: CUSTOMER GARUDA INDONESIA IN JABODETABEK)
ANGGANA EKO AGUSTY 1090081100015
MANAGEMENT DEPARTMENT INTERNATIONAL CLASS PROGRAM FACULTY OF ECONOMICS AND BUSINESS
STATE ISLAMIC UNIVERSITY SYARIF HIDAYATULLAH JAKARTA
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CURRICULUM VITAE
Personal Identities
Name : Anggana Eko Agusty
Gender : Male
Place of Birth : Jakarta
Date of Birth : August 28th 1991
Address : Jl. Kertamukti gang hajinipan no.125 ciputat, tangerang selatan. Indonesia
Phone/Mobile : 085920111707
E-mail Address : angga.agusty@hotmail.com
Formal Education
College : UIN Syarif Hidayatullah Jakarta Senior High School : SMA Islam Al-azhar 3
Junior High School : SMP Madrasah Pembangunan Elementary School : SD Madrasah Pembangunan Kindergarten : TK Ketilang
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vii PREFACE
Thank and blessed the researcher give for the Allah SWT, because of Him I can finish the one requirement to get bachelor degree in UIN Syarif Hidayatullah Jakarta. Shalawat and salam the researcher also give to the holy prophet Muhammad SAW, his family, and his comrades, and his followers that will follow his teaching to the end of the day. Amin
In this opportunity the researcher wants to say thank you to all people that help me to fulfill this bachelor thesis. Particulary to:
1. Special thanks to my father Drs.Bambang Sudibyo Msc, CSLP and my mother Nila Eka Octarina that always give me support to finish this bachelor thesis.
2. Dr. Arief Mufraini, Lc., M.Si as the Dean of Faculty of Economics and Business of UIN Syarif Hidayatullah Jakarta.
3. Titi Dewi Warninda, SE., M.Si as Head of Management studies program and Ela Patriana MM as Secretary of Management Studies Program.
4. Dr.Yahya Hamja, MM as the first thesis supervisor who give me support and spent his time to supervise my thesis.
5. Cut Erika Ananda Fatimah, MBA as the second supervisor who give me support and spent her time to supervise my thesis.
6. Leis Susanawaty, SE., M.Si as my Academic Supervisor
7. All the lecturer and staff in faculty of economics and business, particularly in International Program.
8. Management International 2009. Thank you for the time we spend together and thanks also for the memories that cannot be forgotten.
9. Accounting International 2009, all senior and junior from 2007- 2013 in international program. A pleasure to meet you all.
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viii
10.Stomping Grounds Coffee partner (cepot,kecol,winda,ilham,yuda)
11.District Family, Warbel family, and Bank Mini Family. Thank you for the support and keep motivate me through the several of suggestion.
12.All respondents that cooperative and spent their time in order to fill the data in this research.
13.All my friends that cannot be mention one by one.
May Allah give bountifully reward. Suggestions and criticisms will researcher accept for the sake self of further improvement. In the last word, May Allah SWT give easiness to the all of us, and this thesis can be useful for all of us, particularly for the researcher.
Jakarta, March 2015
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ix
THE INFLUENCE OF BRAND AWARENESS, PERCEIVED BRAND QUALITY, BRAND ASSOCIATION AND BRAND LOYALTY TOWARD CUSTOMER PURCHASE
DECISION TO CHOOSE GARUDA INDONESIA AIRLINES (CASE STUDY: CUSTOMER GARUDA INDONESIA IN JABODETABEK)
ABSTRACT
This research aims to describe the influence of brand awareness, perceived brand quality, brand association and brand loyalty toward customer purchase decision to choose Garuda Indonesia Airlines. This research uses the quantitative method that gathered by distributing the questionnaire directly to the respondents of Garuda Indonesia Airlines that domicile in Jabodetabek areas. The sampling technique is the purposive sampling taken 60 respondents. The data analysis for the hypothesis test uses the multiple regression analysis method. The research result shows partial test that the brand awareness has significance value 0.010, the brand quality has significance value 0.000, the brand association has significance value is 0.115, and the brand loyalty has significant value 0.014. So that, all variables have partially significant positive influence to the customer purchase decision except the variable of brand association. The simultaneous test shows that the brand awareness, brand quality, brand association and brand loyalty have 0,000 significance value. Hence, brand awareness, brand quality, brand association and brand loyalty have simultaneously significance positive influence to the customer purchase decision.
Keyword: Brand awareness, brand quality, brand association, brand loyalty and customer purchase decision.
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x
PENGARUH KESADARAN MERK, KESAN KUALITAS MERK, ASOSIASI MERK DAN LOYALITAS MERK TERHADAP KEPUTUSAN MEMBELI KONSUMEN
UNTUK MEMILIH GARUDA INDONESIA AIRLINES (STUDI KASUS: KONSUMEN GARUDA INDONESIA DI JABODETABEK)
ABSTRAK
Penelitian ini bertujuan untuk mengetahui pengaruh kesadaran merek, kualitas merek yang dirasakan, asosiasi merek dan loyalitas merek terhadap keputusan pembelian konsumen untuk memilih Garuda Indonesia Airlines. Penelitian ini menggunakan metode kuantitatif yang dikumpulkan dengan menyebarkan kuesioner secara langsung kepada responden dari Garuda Indonesia Airlines yang berdomisili di daerah Jabodetabek. Teknik pengambilan sampel adalah purposive sampling yang diambil dari 60 responden. Analisis data untuk uji hipotesis menggunakan metode analisis regresi berganda. Hasil penelitian menunjukkan bahwa uji parsial kesadaran merek memiliki nilai signifikansi 0,010, kualitas merek memiliki nilai signifikansi 0,000, asosiasi merek memiliki nilai signifikansi 0,115, dan loyalitas merek memiliki nilai yang signifikan 0.014. Sehingga, secara parsial semua variabel berpengaruh signifikan terhadap keputusan pembelian konsumen kecuali variabel asosiasi merek. Tes simultan menunjukkan bahwa kesadaran merek, kualitas merek, asosiasi merek dan loyalitas merek memiliki nilai signifikansi 0,000. Oleh karena itu, kesadaran merek, kualitas merek, asosiasi merek dan loyalitas merek secara simultan memiliki berpengaruh signifikan terhadap keputusan pembelian konsumen.
Kata kunci: Kesadaran merek, kualitas merek, asosiasi merek, loyalitas merek dan keputusan membeli konsumen
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TABLE OF CONTENTS
Title ... i
Thesis Approval Sheet ... ii
Thesis Exam Approval Sheet………. iii
Comprehensive Exam Approval Sheet ... iv
Sheet Statement Authenticity Scientific Works ... v
Curriculum Vitae ... vi
Preface ... vii
Abstract ... viii
Abstrak ... ix
Table of Contents ... x
List of Tables ... xiii
List of Figures ... xiv
List of Appendix ... xv
CHAPTER I INTRODUCTION A. Background ... 1
B. Problem Formulation ... 9
C. Research Objectives ... 9
D. Research Benefits... 10
CHAPTER II LITERATURE REVIEW A. Brand 1. Understanding of Brand ... 11
2. History of Brand ... 14
3. Benefit of Brand ... 15
B. Brand Awareness 1. Understanding of Brand Awareness ... 17
2. Establishment of Brand Awareness ... 17
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xii C.Brand Perceived Quality
1. Understanding of Brand Perceived Quality ... 21
2. Dimensions of Brand Perceived Quality ... 22
3. Values of Brand Perceived Quality ... 23
4. Develop of Brand Quality ... 25
D. Brand Association 1. Understanding of Brand Association ... 27
2. Function of Brand Association ... 27
3. Reference of Brand Association ... 28
E. Brand Loyalty 1. Definition of Brand Loyalty ... 31
2. Function of Brand Loyalty ... 31
3. Depth of Brand Loyalty ... 32
4. Measuring of Brand Loyalty ... 34
F. Purchase Decision 1. Definition of Purchase Decision ... 36
G. Previous Research ... 37
H. Relationship Between Variables ... 41
I. Logical Framework ... 44
J. Hypothesis ... 45
CHAPTER III RESEARCH METHODOLOGY A. Research Scope ... 47
B. Sampling Methods ... 47
C. Data Collections Method ... 48
D. Data Analysis Method 1. Data Quality Test a. Validity Test ... 51
b. Reliability Test ... 52
E. Classic Assumption Test 1. Normality Test ... 52
2. Multicollinearity Test ... 52
3. Heteroscedasticity Test ... 54
F. Multiple Regression Analysis ... 55
G. Determination Coefficient ... 56
H. Theoretical Hypothesis 1. Simultaneous Significance Test (F test) ... 57
2. Individual Parameter Test (t Test) ... 57
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CHAPTER IV RESEARCH FINDINGS AND ANALYSIS A. General Description of Research Object
1. Company Overview ... 62
2. Respondents’ Characteristics ... 62
B. Instrument Test Result 1. Validity and Reliability Test ... 65
2. Descriptive Statistical Test ... 68
3. Classical Assumption Test a. Normality Test Result ... 69
b. Multicollinearity Test Result ... 70
c. Heteroscedasticity Test Result ... 71
4. Hypothesis Test Result a. Multiple Linear Regression Test Result ... 72
b. Determination Coefficient Test Result ... 74
c. t Test Statistical Result ... 75
d. F Test Statistical Result ... 78
5. Analysis a. Brand Awareness ... 79
b. Brand Loyalty ... 80
c. Brand Association ... 80
d. Brand Perceive Quality ... 80
CHAPTER V CONCLUSION AND IMPLICATIONS A. Conclusions ... 82
B. Implication ... 83
REFERENCES ... 85
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xiv
LIST OF TABLES
1.1 Top Brand Airlines ... 5
2.1 Element of Brand ... 12
2.2 Previous Research Table ... 38
3.1 Likert Scale Table ... 50
3.2 Variable Operational Table ... 59
4.1 Validity and Responsibility test result ... 66
4.2 Descriptive Statistical Test ... 68
4.3 Multicollinearity test result Table ... 70
4.4 Determination Coeffecient Test Result Table ... 74
4.5 t Test Result Table ... 75
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xv
LIST OF FIGURES
2.1 Brand Awareness Pyramid ... 18
2.2 Value of Brand Awareness ... 20
2.3 Diagram Perceive Quality ... 24
2.4 Stage of Consumer buying decision process ... 37
2.5 Logical Framework ... 44
4.1 Respondents Gender ... 65
4.2 Respondents Domicile ... 65
4.3 Respondents Frequent Flight ... 66
4.4 Respondents Destination ... 67
4.5 Normality Probability Plot ... 70
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xvi
LIST OF APPENDIXES
1. Questionnaire Research ... 91
2. Brand Awareness Tabulation ... 96
3. Brand Quality Tabulation ... 97
4. Brand Association Tabulation... 99
5. Brand Loyalty Tabulation ... 100
6. Customer purchase Decision Tabulation ... 102
7. Brand Awareness Testing ... 104
8. Brand Quality Testing ... 105
9. Brand Association Testing ... 106
10.Brand Loyalty Testing ... 107
11.Customer purchase Decision Testing... 108
12.Multicollinearity Test Result ... 109
13.Coefficient Determination, t Test Result ... 109
14.F test result ... 109
15.Normal Probability Plot ... 110
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1 CHAPTER I
INTRODUCTION A. Background
Transportation is something that’s related to the displacement of people or goods from one place to another destination. Transportation divided into 3 part, land, sea, and air transportation. Air transportation is a method of transportation by which passengers, mail, and cargo are conveyed by air. The chief advantage of this method is the considerable amount of time saved because of the high speed of the flight. Air transportation began in Europe and America after World War I. (http://encyclopedia2.thefreedictionary.com/Air+Transport)
Air transportation in Indonesia started in 18 march 1911, nowadays Indonesia has 6 famous brand airlines, one of the famous brand airline in Indonesia is Garuda Indonesia airlines. PT. Garuda Indonesia (Persero) Tbk is one of the state-owned companies that still survive until now. Garuda Indonesia is the oldest and the first airline in Indonesia, which has been operating since January 26, 1949 (as Garuda Indonesian Airways).
Along with the development of national and international airlines, not many airline companies were able to survive under conditions of competition, if not supported by a strong financial and corporate management professionals. With the rapid growing industries today makes competitors among companies is getting tougher in the capture of customers as well as maintaining existing market share. Good service is an entity that is integrated and can be seen from the customer's expectations. Companies must be able to develop products that provide
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2 convenience nature, beneficial and acceptable to the customer. Any way be taken to win the competition with the creation of the best selling products which essentially provide the best service to the customer with the ultimate goal of maintaining the old customers and attract new customers. (Dedy Mulyadi : 2008) Indonesia’s commercial aviation history began when Indonesian people was in struggle to defend their independence. The first commercial flight from Calcutta to Rangoon was made on January 26, 1949, using a DC-3 Dakota aircraft with the tail number of “RI 001” and the name “Indonesian Airways”. In the same year, on December 28, 1949, another DC-3 aircraft registered as PK-DPD and painted with “Garuda Indonesian Airways” logo flew from Jakarta to Yogyakarta to pick up President Soekarno. This Was the first flight made under the name of Garuda Indonesian Airways.( https://www.garuda-indonesia.com)
Then, in a year later, in 1950, Garuda Indonesia officially became a state owned company. During that period, the company operated a fleet of 38 aircrafts comprising 22 DC-3, 8 Catalina flying boats, and 8 Convair 240. Garuda Indonesia’s fleet continued to grow, and eventually made its first flight to Mecca carrying Indonesian hajj pilgrims in 1956. In 1965, the first flight to European countries strated was made with Amsterdam as the final destination.
Garuda Indonesia fleet and operations underwent large scale revitalization and restructuring throughout the 1980s. This prompted the Company to develop comprehensive training programs for its air and ground crews and established a dedicated training facility in West Jakarta, named the Garuda Indonesia Training Center. In Addition the Company also built an Aircraft Maintenance Center at
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3 Soekarno-Hatta International Airport. Then in the early 1990s, Garuda Indonesia developed a long-term growth strategy which was applied until the year 2000. The Company also continued to expand its fleet placing Garuda Indonesia among the 30 largest airlines of the world.
Along with initiatives in business development in 2005, a new management team took office and formulated new plans for the future of the company. The new management undertook a comprehensive re-evaluation and overall restructuring with the objective improving operational efficiency, regained financial stability that involved efforts in debt restructuring, increased awareness among employees concerning the importance of service to customers and , most importantly, revived and revitalized the Garuda Indonesia spirit.
(https://www.garuda-indonesia.com)
The successful completion of the company’s debt restructuring program opened the way for Garuda Indonesia to go public on 11th February 2011. The company officially became a public company after the initial public offering of 6,335,738,000 shares. The company’s shares were listed on the Indonesia Stock Exchange on February 11, 2011 with code GIAA. This was one important milestone after the company completed the transformation on its business through hard work and dedication of all parties. As of December 2013, the share holding structure of Garuda Indonesia as the Issue and public company is the Republic of Indonesia (69.14%), employees (0.4%), domestic investors (24.34%), and international investors (6,12%).
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4 To support its operations, Garuda Indonesia established 5 (five) subsidiaries focusing on products/services that support the parent company’s business. The subsidiaries were PT Abacus Distribution Systems Indonesia, PT Areo Travel, PT Garuda Maintenance Facility Aero Asia, PT aero System Indonesia, and PT Citilink Indonesia. In conducting its operations, the company is supported by 7,861 employees. (https://www.garuda-indonesia.com)
Nowadays Garuda Indonesia is Indonesia's airline concept as a full service airline (airline with full service). Currently, Garuda Indonesia operates 82 fleet to serve 33 domestic routes and 18 international routes, including Asia (Regional South East Asia, Middle East, China, Japan and South Korea), Australia and Europe (the Netherlands). As a form of concern for safety, Garuda Indonesia has been awarded the IATA Operational Safety Audit (IOSA). This proves that the airline is in compliance with international standards in the field of safety and security.
To improve service, Garuda Indonesia has launched a new service called "Garuda Indonesia Experience". This new service offers a concept that reflects the genuine hospitality of Indonesia in all aspects. To support this service, all new fleet is equipped with the most cutting-edge interior, which features individual touch-screen LCD TVs throughout the Business Class and Economy Class. In addition, passengers are also pampered with Audio and Video on Demand (AVOD) entertainment system that offers a wide selection of movies or songs, as voted by each passenger. Various awards had been received by Garuda Indonesia as proof of superiority. In 2010, Skytrax named Garuda Indonesia as the "Four
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5 Star Airline" and as "The World's Most Improved Airline Best". Subsequently in July 2012, Garuda Indonesia received the award for "World's Best Regional Airline" and "Best Regional Airlines in the World". A consulting agency called the Centre for Asian airlines Aviation (CAPA), based in Sydney, also gave awards to Garuda Indonesia as "These are the Most Changing Direction of the Year", in 2010. Meanwhile, Roy Morgan, an independent research institute in Australia, as well give awards to Garuda Indonesia as the "Best International Airline" in January, February and July 2012. (www.garuda-indonesia.com, Accessed on October 2014).
The table below shows the strong dominance of the Garuda Indonesia flight as the airlines company in Indonesia.
Table 1.1
Top brand airlines 2014
Brand TBI TOP
Garuda Indonesia 39,6% TOP
Lion Air 32,3% TOP
Air Asia 10,8% TOP
Sriwijaya Air 4,0%
Citilink 2,7%
Merpati 2,5%
Source:www.topbrand-award.com
Based on the above table it can be seen that the brand awareness of Garuda Indonesia has a sizable percentage value compared to its competitors, It can be concluded that Garuda Indonesia is one of the airlines with a brand that is well known by consumers. But in 2014 Garuda Indonesia acknowledges a period of very heavy, so the government-owned airline is losing profit. Until the third
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6 quarter of 2014, Garuda Indonesia suffered a loss of US $ 204 million (http://berita.suaramerdeka.com).
After looking at the data above, I choose this topic to lift it into the problems of my thesis. because I see that the Garuda Indonesia in 2014 suffered substantial losses, but Garuda Indonesia continues to be the top brand in 2014. This raises the big question, why Garuda Indonesia continues to be the number 1 even though it had lost. For answer this problem, i decided to use brand equity as my variable, brand equity divided into 4 variables: brand awareness, perceived brand quality, brand association, and brand loyalty.
Brand awareness is the ability to recognize or recall that a brand is a part of a particular product category (Aaker, 1997: 90). In order for a brand can be remembered by consumers, the company is pursuing a strategy of advertising as a stimulus to show and introduce the brand with the features and characteristics. To be able to achieve brand awareness and improved can be reached in the following ways (Aaker in Durianto et al, 2004: 57):
a. The message must be easy to remember and look different than the other and there should be a relationship between the brand and the product category.
b. Wearing a slogan or jingle interesting song to form a consumer to remember the brand.
c. If the product has a symbol, the symbol should be used may be associated with the brand (GA with blue giant bird).
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7 d. The expansion of the brand name can be used in order to brand the
more memorable customers.
e. Brand awareness can be enhanced by using an cues according to product category, brand, or both.
f. Doing repetitions to improve the recall because, it is difficult to form memories than shape recognition.
Durianto, 2004: 96 said impression of the quality of the brand can be defined as the customers' perception of the overall quality or superiority of a product or service associated with what is expected by the customer. The dimensions of perceived quality is divided into seven, namely: Performance, Services, Resilience, Reliability, Product Characteristics, Conformance to specifications, Results.
In the other side Durianto (2004: 69-70), said there are five functions of brand associations include:
a. Help process / retrieve information (to help the process of preparation of the information).
b. Differentiate (differentiate).
An association may provide an important foundation for the efforts of a brand distinction from other brands.
c. Reason to buy (reason to buy).
Brand association evoke various product attributes or benefits to the consumer (customer benefits) that can provide the specific reasons for consumers to purchase and use any other brand.
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8 d. Create a positive attitude / feelings (creating positive attitudes or
feelings).
Some associations are able to stimulate a positive feeling, which in turn spread to the brand in question. The association can create a positive feeling on the basis of their previous experience and the experience of conversion into something else than others.
e. Basis for extensions (the foundation for expansion).
An association can produce the foundation for an expansion by creating a sense of conformity (sense of fit) between a brand and a new product or by presenting a reason to buy the product expansion.
The last of the core indicators of brand equity is brand loyalty. brand loyalty is a measure of the customer relationship to a brand. Brand loyalty is a measure of customer loyalty to a brand, Rangkuti (2002: 60). which is clearly associated with sales opportunities, which also means loyal customers in general will continue to purchase these brands even though faced with many alternative brands of competitors' products that offer superior product characteristics is viewed from different angles attributes (Durianto, 2004: 126).
Based on the theory and the problems researchers interested in studying about “The Influence of Brand Awareness, Perceived Brand Quality, Brand Association, Brand Loyalty toward Customer Purchase Decision to
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9 choose Garuda Indonesia Airlines (Case study: customer Garuda Indonesia in Jabodetabek)”.
B. Problem Formulation
Problem Formulation in this research are:
1. Is there any influence of brand awareness toward purchase decision partially of Garuda Indonesia customer in Jabodetabek.
2. Is there any influence of perceived brand quality toward purchase decision partially of Garuda Indonesia customer in Jabodetabek.
3. Is there any influence of brand association toward purchase decision partially of Garuda Indonesia customer in Jabodetabek.
4. Is there any influence of brand loyalty toward purchase decision partially of Garuda Indonesia customer in Jabodetabek.
5. Is there any influences of brand awareness, perceived brand quality, brand association, and brand loyalty toward purchase decisions simultaneously of Garuda Indonesia customer in Jabodetabek.
C. Objectives and Benefits Of Research 1. Research objectives
Purpose of the research are :
a. To analyze the influence of brand awareness, perceived brand quality, brand association, and brand loyalty partially toward purchase decision of Garuda Indonesia among customer in Jabodetabek
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10 b. To analyze the influence of brand awareness, perceived brand quality, brand association, and brand loyalty simultaneously toward purchase decision of Garuda Indonesia among customer in Jabodetabek
2. Benefit of the Research a. For the Company
Benefits for the company is to know about the consumer perception of brand awareness, perceived brand quality, brand association, brand loyalty on consumer purchasing decisions. The information is expected the company to develop its marketing strategy
b. For the Researcher
This study is a chance for authors to apply the theory that can be currently study in college as well as expand the horizons of the brand awareness, perceived brand quality, brand association, brand loyalty and the consumer purchasing decisions.
c. For the Reader
This study is expected to provide a reference for all students and academics who want to study the problem related to marketing, especially purchasing decisions. and as a work that can be used as a discourse and library for students or academics who have an interest examined in the same field.
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11 CHAPTER II
LITERATURE REVIEW A. Brand
1. Understanding of Brand
According to Brand Constitution No. 15, 2001, verse 1, paragraph 1 in Tjiptono (2005: 2), the brand is "sign in the form of images, names, words, letters, figures, composition of colors, or a combination of these elements, having distinguishing features and used in the trading of goods or services ".
According to the American Marketing Association in Kotler and Susanto (2001: 575), the brand is a name, term, sign, symbol, or design, or a combination of these things, which is intended to identify the goods or services of a person or group of sellers and to differentiate from the competition.
According to De Chernatory and seal-Horn (2003) in Tjiptono (2005: 8), the brand is a "link" between the company's marketing activities and consumers' perception of functional elements and emotional in their experience with a particular product and how the product is presented to the them.
According to Keller (2003) in Tjiptono (2005: 19), the brand is a product that can provide an additional dimension that uniquely distinguishes it from other products designed to satisfy the same needs.
According Durianto. (2004: 1), the brand is a name, term, sign, symbol design, or combination thereof that identifies a product or service produced by the company. The brand is a product or service dimensions enhancer in a
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12 certain way to differentiate of other products or services that are designed to satisfy the same needs (Kotler and Keller, 2008: 332).
Based on the above definition it can be concluded that the brand has two elements, namely brand image consisting of letters or words that can be read, as well as the brand mark in the form of a symbol, design, or color specific. The two elements of a brand, in addition to useful to distinguish one product from competing products is also useful to facilitate the consumers to recognize and identify the goods or services to be purchased.
A brand has several elements or identities, both tangible and intangible (see table 2.1). Broadly speaking, these elements can be translated into a brand name (brand names), the URL (Uniform Resource Locotors), logos, symbols, characters, spoke (spokes people), slogans, jingles, packaging and signage, Keller (2003) in Tjiptono (2005: 4).
Table 2.1 Element of brand No. Element Tangible and
Visual
Element Intangible 1. Symbol and slogan Identities, brand,
corporate,
communication, customer relation.
2. Name, logo, color, brand mark and advertising slogan
3. Name, trade brand Positioning,
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13 No. Element Tangible and
Visual
Element Intangible 4. Functional capabilities,
name, Law protection
Symbolic value, service, signs of ownership, shorthand notation 5. Functionality Representaionality 6. Attendance and
Performance
Relevance, Privilege, bond
7. Unique name, logo, graphic design and Physic
8. Physic form Personality, relation, culture, reflection, self-image
9. Functional value Social value and personal Source: Keller (2003).
According to Kotler and Susanto (2000: 575), a brand can have six levels of understanding:
a. Attributes
Brand reminiscent of certain attributes. Mercedes says something expensive, well-made, well-designed, durable, high prestigious, high resale value, fast, and others. Companies can use one or more of these attributes to advertise their products. For years Mercedes advertises "designed unlike any car in the world." This serves as a basis for laying position for projecting other attributes. b. Benefits
The brand is not just a set of attributes. Customers do not buy attributes, they buy benefits. Attributes required to be developed into functional and emotional benefits. Attribute "durable" could be developed into a functional benefit, "I do not want to buy a new car every few years". Attribute "expensive" might be developed into
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14 functional and emotional benefits, "I'll keep it safe in case of an accident".
c. Value
The brand also stated value of the manufacturer. Mercedes states of high performance, security, prestige, and others. Brand marketers should be able to know which group of car buyers who are looking for these values.
d. Culture
The brand also represents a particular culture. Mercedes represents German culture: organized, efficient, and high quality. e. Personality
brand also reflects a certain personality. If a brand is a person, animal, or an object, what would have occurred to us? Mercedes reflects a sensible leader (the lion reigns (animal), or a simple place (object). Sometimes it reflects the personality of a famous brand. 2.History of Brand
The practice of branding has been going on for centuries. The word "brand" in English is derived from the word "brand" in Old Norse, meaning "to burn", referring to the identification of livestock Blackett (2003) in Tjiptono (2005: 23). At that time, the owner of the farm use "stamp" special to mark his cattle and distinguish it from other people's livestock. Through this stamp as consumers become more easily identify the cattle quality offered by a good reputable breeder. In fact, one definition of a brand that formulates the Oxford
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15 Advanced Learner's Dictionary of Current English (2000) is: "a mark made with a piece of hot metal, especially on farm animals to show WHO owns them" (mark made by a hot metal, especially on farm animals to show who the owner). A number of historical evidence reveals that the brand mark identity in the form (identity marks) have been used since thousands of years ago.
For example, the writings and drawings on the walls of ancient Egyptian tombs show that the cattle at that time had been given a brand / mark since 2000 BC (BC). In ancient Roman times, the stores put on the image (such as shoes, beef or meat) to identify their products. Other examples include identifying marks on ancient Chinese porcelain and ancient Greek and Roman urns (Tjiptono, 2005: 24).
3. Benefit of brand
Keller (2003) in (Tjiptono, 2005: 20), expressed in terms of brand manufacturers play an important role as:
a. Means of identification to facilitate the process of handling or tracking products for the company, especially in the organization of preparation and accounting records.
b. This form of legal protection against the features or aspects of a unique product. Brands can get the protection of intellectual property. The brand name can be protected by trademarks (registered trademarks), the manufacturer processes can be protected by patents, and packaging can be protected by copyright (copyrights) and design. Intellectual property
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16 rights is to guarantee that the company can invest safely in a developed brand and reap the benefits of these valuable assets.
c. Signal level of quality for satisfied customers, so that they can easily select and buy it again at a later time. Such brand loyalty produces predictability and security of demand for the company and create entry barriers that make it difficult for other companies to enter the market. d. Means for creating unique associations and meanings that differentiate
the product from competitors.
e. Source of competitive advantage, particularly through legal protection, customer loyalty, and a unique image that is formed in the minds of consumers.
f. Sources of financial returns, especially regarding future revenues.
Keller (2003) in Tjiptono (2005: 20), suggests the principal benefits of the brand for consumers, namely:
a. Brand that identifies the source of the product.
b. Brand as imposing liability on a particular manufacturer or distributor. c. Brand as a risk reduction.
d. Brand as a suppressor of search costs internal and external. e. Brand as a promise or a special bond with the manufacturer. f. Brand as a symbolic means of projecting the self-image. g. Brand as a signal of quality
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17 B. Brand Awareness
1. Understanding of Brand Awareness
Brand awareness is the ability of a potential buyer to recognize, recall of a brand as part of a particular product category (Durianto, 2004: 57). Meanwhile, according to Aaker (1999) in Afandy (2008: 22), Brand awareness is a consumer acceptance of a brand in the minds of them which is shown by their ability to recall and recognize the brand into the back of a certain category. 2. Establishment of brand awareness
Part of a product category needs to be emphasized because there is a strong relationship between the brand product category involved. For example, the publication of Garuda Indonesia will not help the brand awareness of Kacang Garuda. Brand awareness requires continum ranging (range continuum) of feelings of uncertainty that a particular brand has been known beforehand, so that consumers believe that the product is the only brand within a product group (Durianto, 2004: 55). Therefore, consumers are likely to buy a brand that is known, because by buying brands that are well known, they feel safe, protected from various risks with the assumption that the use of a brand that is known to be more reliable, (Durianto, 2004: 54).
This continuum can be represented in different levels of brand awareness that can be described in a following pyramid:
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18 Image 2.1
BRAND AWARENESS PYRAMID
Source: Durianto (2004:55).
The role of brand awareness in brand equity will depend on the level of achievement of awareness in the minds of consumers (Durianto, 2004: 55), the picture above shows the four levels of brand awareness in a pyramid called brand awareness. Pyramid brand awareness from the lowest level to the highest level is as follows:
a. Brand unaware (not aware of the brand) is the lowest level of brand awareness in the pyramid, where the consumer is not aware of a brand. b. Brand recognition (branding) is the minimum level of brand awareness,
where the introduction of a brand appear again after the recall through the aid (aided recall).
(Top of Mind)
(Brand Recall)
(Brand Recognition)
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19 c. Brand Recall (recall of the brand) is the recall of the brand without aid
(unaided recall).
d. Top of Mind (top of mind) is the first brands mentioned by consumers or who first appeared in the minds of consumers. In other words, the brand is the main brand of different brands that exist in the minds of consumers.
Brands that in the first call in a recall task without the help of means have achieved top of mind awareness (top of mind awareness), a special position. In a very simple sense, a brand is a leader of a variety of brands that exist in one's mind. Of course, there are other brands that are adjacent to it.
To be able to achieve brand awareness and improved can be reached in the following ways (Aaker in Durianto, 2004: 57):
g. The message must be easy to remember and look different than the other and there should be a relationship between the brand and the product category.
h. Wearing a slogan or jingle interesting song to form a consumer to remember the brand.
i. If the product has a symbol, the symbol should be used may be associated with the brand (GA with blue giant bird).
j. The expansion of the brand name can be used in order to brand the more memorable customers.
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20 k. Brand awareness can be enhanced by using an cues according to
product category, brand, or both.
l. Doing repetitions to improve the recall because, it is difficult to form memories than shape recognition.
3. The purpose of brand awareness
Brand recognition is the first basic step in the task of communication. The role of brand awareness in helping the brand can be understood by examining how brand awareness creates a value (Durianto, 2004: 7). Brand awareness provide value in four ways, as shown in Figure 2.2.
Image 2.2
Value of brand awareness
Source: Durianto (2004: 7).
Explanation of the four values are as follows:
a. Anchor link a variety of associations: a high brand awareness in the minds of consumers will help the associations attached to the brand because, cruising the brand to be very high in the minds of consumers.
Places of link for association
Familiar/liking
Substance/commitment
Consider brand Brand awareness
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21 It can be concluded that if a brand awareness is low, then the association created by the marketer would be hard attached to the brand.
b. Familiar or taste like: if a very high awareness of the brand, the consumer will be very familiar with the brand and eventually there will be a high liking towards the brand.
c. The substance or commitment: brand awareness can signal the presence, commitment, and the core is very important for the company. So if a high awareness of the brand, the brand's presence will always be able to feel. A brand with high consumer awareness is usually caused by several factors, namely the widely advertised, the existence of which has stood the test of time, a wide range of distribution, and the brand is managed properly.
d. Consider the brand: the first step in the buying process is to select the brands known in the business of the group to consider and decide which brand to buy. Brand top of mind with a high value-high consideration. If a brand is not stored in the memory, the brand will not be considered in the minds of consumers
C. Brand Perceived Quality
1. Understanding of brand perceived quality
Impression of the quality of the brand can be defined as the customers' perception of the overall quality or superiority of a product or service associated with what is expected by the customer (Durianto, 2004: 96).
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22 Meanwhile, according to the Rangkuty Aaker (2002: 41), the perception of quality is the customer's perception of the overall quality or superiority of a product or service that is equal to the expected mean.
Based on the above definition it can be concluded that the perceived quality of the brand is the customer's perception of the overall quality or superiority of a product or service related to customer expectations.
Because perceived quality is the customer's perception of the perceived quality cannot be determined objectively. Customer perception will involve what is important to customers because each customer has an interest (measured relative) different to a product or service. Thus it can be said that discuss the perceived quality means it will discuss the involvement and interests of customers.
2 . Dimension of brand perceived quality
According to Garvin in Durianto, (2004: 98), the dimensions of perceived quality is divided into seven, namely:
a. Performance: The main operations involve a variety of characteristics, such as the operational characteristics of the car are speed, acceleration, steering system, as well as comfort. Because of the interest of customers differ from each other, customers often have different attitudes in assessing the performance of these attributes.
b. Services: reflects the ability to provide services on these products. For example, a particular brand of car damage or provide services 24-hour car service around the world.
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23 c. Resilience: reflects the economic life of the product. For example, a particular brand of car that is positioned himself as a durable car although it has only 12 years old but still works fine.
d. Reliability: consistency of performance resulting from a purchase of a product to the next purchase.
e. Product Characteristics: additional parts of the product (feature), such as remote control of a video, WAP system for mobile phones. This addition is usually used as an important differentiator when two brands of products look almost the same. These additional parts emphasized that the company understands the needs of its customers with the development dynamic. f. Conformance to specifications: a view of the quality of the manufacturing
process (there is no product defect) in accordance with predetermined specifications and tested. For example, a car in a particular class with predetermined specifications such as the type and power of the engine. g. Results: leads to the perceived quality involving six dimensions
previously. If a company cannot produce the "final results" good product then chances are the product will not have another important quality attributes.
3. Values of brand perceived quality
Perceived quality has an important role in building a brand, in the context of the perceived quality of a brand can be an important reason for the purchase and which brand would be considered customers which in turn will affect customers in deciding which brand to buy (Durianto, 2004: 100 to 101).
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24 Perception of the overall quality of a product or service can determine the value of the product or service and directly affects consumer purchasing decisions Durianto, (2004: 96).
In general, the values of consumer impressions can be described as follows:
Image 2.3
Diagram of perceived quality
Source: Durianto (2004:101).
Explanation of the picture 2.3 above can be seen as follows: a. Reasons to buy
Limitations of information, money and time to make a purchase decision is heavily influenced by one's customers perceived quality of brand that is in the minds of consumers, so often times the only reason
Reason to buy
Differentiation or position
Optimal price
Interest distribution channels Perceveid Quality
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25 for his purchase decision based on the perceived quality of the brand to be bought.
b. Differentiation or position
Differentiation is defined as an essential characteristic of the brand, if the brand or economically valuable also with regard to the perception of the brand is the best or just competitive against other brands. c. optimum Price
This advantage gives choices in setting the optimum price can increase profits or provide resources for reinvestment in the brand. d. Interests distribution channels
This advantage is due to the increasing interest of distributors can offer a product that has a perception of high quality with attractive price and controls the traffic distribution to distribute the brands that consumers demand.
e. brand extension
Impression of the quality can be exploited by introducing a variety of brand extension, by using a specific brand to enter into new product categories.
4. Develop a strong brand quality
According to Aaker, Managing brand equity in Durianto. (2004: 104), points to consider in building perceived quality are:
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26 a. Commitment to quality.
Companies must have a commitment to quality and to maintain the quality continuously. Efforts, maintaining quality is not just lip service but is reflected in the action without compromise.
b. Quality culture.
Commitment to quality should be reflected in the corporate culture, behavioral norms, and values. If a company is faced with the choice of quality and cost, the quality of which must be won.
c. Information input from customers.
In the end the perceived quality build the customer who defines quality. Often leaders erred in estimating what is considered important by customers. For example, a credit card, the manager estimated that the ease of obtaining credit cards is the most important to the customer, when the customer safety and assurance of a lost card is paramount. That's why companies need to continuously research the customers in order to obtain accurate information and up to date. d. Clear targets or standards.
Quality goals must be clear and not too common because the targets are too general quality tends to be of no benefit. Quality should also have clear standards, it is understood and prioritized. Too many targets without priority is tantamount to not have a focus target that would ultimately jeopardize the survival of the company itself.
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27 e. Develop employee initiative.
Employees should be encouraged and allowed to take the initiative and be involved in finding solutions to the problems faced by the creative and innovative thinking.
D. Brand Association
1. Understanding Trademark Association (brand association)
Reflecting the brand image of a particular impression in relation to habits, lifestyle, benefits, product attributes, geographical, prices, competitors, celebrities and others, Aaker (1991) in Durianto. (2004: 4).
According to the Rangkuti Aaker (2002: 43), brand association is anything related to the memory of a brand.
In general, brand associations (especially those that form its brand image) into a foothold in the consumer purchase decision and loyalty to the brand (Durianto, 2004: 69).
2. Functions Trademark Association (brand association)
According Durianto. (2004: 69-70), there are five functions of brand associations include:
a. Help process / retrieve information (to help the process of preparation of the information).
b. Differentiate (differentiate).
An association may provide an important foundation for the efforts of a brand distinction from other brands.
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28 c. Reason to buy (reason to buy).
Brand association evoke various product attributes or benefits to the consumer (customer benefits) that can provide the specific reasons for consumers to purchase and use any other brand.
d. Create a positive attitude / feelings (creating positive attitudes or feelings).
Some associations are able to stimulate a positive feeling, which in turn spread to the brand in question. The association can create a positive feeling on the basis of their previous experience and the experience of conversion into something else than others.
e. Basis for extensions (the foundation for expansion).
An association can produce the foundation for an expansion by creating a sense of conformity (sense of fit) between a brand and a new product or by presenting a reason to buy the product expansion.
3. Reference Trademark Association
According Durianto. (2004: 70-72), associations related to the brand is commonly associated with a variety of the following:
a. Product attributes (product attributes).
Associate attributes or characteristics of a product positioning strategy that is most commonly used. Developing these
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29 associations are effective because if the attribute is meaningful, the association can be directly translated into the purchase of a brand reasons.
b. Attributes intangibles (intangible attributes).
An intangible factor is a common attribute, such as perceived quality, technological advances, or the impression that summarizes a set of attribute values and objectives.
c. Customer's benefits (benefit to the customer).
Because most of the attributes of the products provide benefits to the customer, then the relationship between them is usually artifacts. Benefits to customers can be divided into two, namely:
1) Rational benefits (benefits rational). Benefits rational closely related to the attributes of the products that can be part of a rational decision making process.
2) Psychological benefits (psychological benefits). Psychological benefits are often the consequence of an extreme in the process of attitude formation, associated with feelings arising when buying or using the brand.
d. Relative price (relative price).
Evaluation of a class in part of brand of this product will begin by positioning the brand in one or two of the price level.
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30 e. Application (use).
This approach is to associate the brand with a specific use or application.
f. Users / customers (users / customers).
This approach is to associate a brand with a new type of user or customer of the product proficiency level.
g. Celebrity / person (famous people / audience).
Linking famous person or an artist with a strong brand associations can transfer that is owned by famous people to the brand.
h. Life style / personality (lifestyle / personality).
Association of a lifestyle brand with an association can be inspired by the brand customers with a variety of personality and lifestyle characteristics were almost the same.
i. Product class (class of products). Associating a brand in its product class. j. Competitors (competitors).
Knowing competitors and try to match or even surpass competitors.
k. Country / geographic area (country / geographic region).
A country can be a powerful symbol as long as it has a close relationship with the products, materials, and capabilities.
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31 E. Brand Loyalty
1. Definition of Brand Loyalty
According Durianto. (2004: 126), brand loyalty is a measure of the customer relationship to a brand. Brand loyalty is a measure of customer loyalty to a brand, Rangkuti (2002: 60).
Fadli and Inneke (2008: 54) said, brand loyalty is a consumer attachment to a brand that includes a sense of loyalty and customer satisfaction with the preferred brand compared to other brands.
This measure is able to give an idea of whether or not a customer may switch to another brand, especially if the brand proficiency level was found to changes, both related to price or other attributes.
Brand loyalty is one of the core indicators of brand equity, which is clearly associated with sales opportunities, which also means loyal customers in general will continue to purchase these brands even though faced with many alternative brands of competitors' products that offer superior product characteristics is viewed from different angles attributes (Durianto, 2004: 126).
2. Functions of Brand Loyalty (brand loyalty)
With proper management and utilization, brand loyalty can be a strategic asset for the company. According Durianto. (2004: 127), brand loyalty can provide value to the company in the form of:
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32 a. Reduce marketing costs (reduced marketing costs).
Marketing costs to retain customers will be cheaper than the cost of marketing to get new customers. Thus, marketing costs will be smaller if the increased brand loyalty.
b. Increasing trade (trade leverage).
Strong loyalty to a brand will result in increased trade and strengthen the confidence of marketing intermediaries. It is concluded that these buyers in buying a brand based on their habits over the years.
c. Attract new customers (attracting new customers).
A feeling of satisfaction and love to a brand will lead to potential consumers feeling confident to consume the brand and will usually recommend / promote a brand that he used it to others, so it is likely to attract new customers.
d. Giving time to respond to the threat of competition (provide time to respond to competitive threats).
If competitors develop superior products, loyal customers will give time for the company to respond to a competitor by updating its products.
3. Depth of Brand Loyalty (brand loyalty)
In relation to a product brand loyalty, found the existence of some degree of brand loyalty. Each level shows the marketing challenges that must be faced at
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33 once the asset can be utilized. The level of brand loyalty in Durianto according to Aaker et al. (2004: 128-129), are as follows:
a. Sedentary (switcher).
Is the most basic level of loyalty. Consumer purchases more often move from one brand to another brand which indicates that they are not loyal, all the brands are considered adequate. In this case the brand holds a small role in the purchase decision. The most noticeable characteristic of this type of customer is that they buy a product because it's cheap and a lot of other consumers who buy the brand.
b. Buyers who are habits (habitual buyer).
It is the buyer who did not experience dissatisfaction in consuming a product brand. There is no good reason for him to buy another brand of product or brand switching, especially if the transition takes effort, expense, or other sacrifice. So, buyers in the purchase of a brand for reasons of habit.
c. Buyer is satisfied with the cost of transition (satisfied buyer). Is a category of buyers who are satisfied with the brand is consumed. However, the buyer can just move the brand to bear the costs of transition (switching cost), such as time, cost, or risk incurred as a result of the actions of the brand transition. To attract buyers in this category, competitors need to address the transition
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34 costs to be borne by the buyer by offering a variety of benefits as compensation.
d. Buyers who like the brand (likes the brand).
Is a category of buyers who truly love the brand. Sense of association relating to symbols, the circuit using the mark prior experience, or the perception of high quality. And they think of brands as a friend.
e. Comitted buyer
Is the category of loyal buyers. These buyers have a pride in using a brand. The brand is very important even in terms of both function and as an expression of who the users. Characteristics that appear in this category is the act of a buyer to recommend / promote the brand he uses it to others.
4. Measuring Brand Loyalty
According to Aaker (1997: 63-68), to understand the brand loyalty and its management more clearly, use considerations in measurement approaches. A consideration of some of the measurements that remain will provide additional insight into the scope and nuance, in other words: to provide a practical tool in using the concept and relate it to profitability. One approach used to consider the actual behavior. Meanwhile, another approach based on loyalty building consisting of:
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35 a. The costs of transition
Is an analysis of the cost of the transition can give their views on the extent to which the costs of switching provides a platform for brand loyalty. If a very expensive or risky for a company or customer to change the supply, the rate of depreciation of the customer group will be lower.
b. Measuring satisfaction.
Diagnose paramount to every level of brand loyalty is a measure of satisfaction and dissatisfaction. The most important of loyalty is the absence of discontentment. If anything, the taste is not satisfied it low enough so as not enough reason to rush to switch brands.
c. Liking to the brand.
Is a positive influence that could result in barriers for competitors. It would be much more difficult to compete against a sense of love than to compete with a product with specific characteristics.
d. Commitment.
Brands of the most powerful, ie which have very high equity, will have a large number of loyal customers. If there is a huge level of commitment, it would be relatively easy to detect because the commitment is usually manifested in various forms. One key indicator is the amount of interaction and communication that is involved with the product.
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36 F. Purchase Decision
a. Definition of Purchase Decision
The main goal for marketers is to serve and satisfy the needs and desires to the consumer. Therefore, the marketing need to understand how consumers behave in meet and satisfying the needs and desires. Purchasing decisions arise because of the objective assessment of emotional. The decision to act was the result of a series of activities based on the mental and emotional stimulation. The main goal for marketers is to serve and to satisfy consumer desire. Therefore, marketers need to understand how where consumers behave in meeting and satisfying the needs and desires of consumers.
Purchase decision is an act of selection of alternatives that consumers have, as they were defined by Kotler and Keller (2005:227) defines the consumer purchase decision as follows: ''Consumer-purchasing decision is the process by which customers form their choice in a variety of brands belonging to the set of options".
A buying decision simple or complicated are always influenced by many factors, both factors that can be controlled company (marketing stimuli and other stimuli) and the factors that cannot be controlled by the company (cultural, personal, social, psychology). For this reason, the company should focus its marketing effort on factors that can be controlled which in essence is how the consumer to respond to various marketing stimuli are commonly arranged by the company. According to Kotler and Keller (2007:235) conducted phase consumers
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37 through several processes before making a purchase decision. The following stages describe the process:
Image 2.4
Stage of Consumer Buying Decision Process
Source : Kotler dan Keller (2007: 235). G. Previous Research
Research on brand awareness, brand image quality, brand association, brand loyalty, television advertising and purchasing decisions have been carried out by previous researchers. These studies provide input as well as many additional contributions for manufacturers to perform any approaches that consumers are interested in purchasing the product. Table 2.3 shows the results of previous studies regarding the purchase decision Problem
recognition
Information research
Evaluation of alternatives
Purchase decision
Post purchase behavior
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38 Table 2.3
Previous Research
No Researcher(year) Title Research
Variable
Research
Methodology Conclusion
1. Fadli and Inneke Qamariah (2008) Analisis pengaruh faktor-faktor ekuitas merek sepeda motor merek honda terhadap keputusan pembelian (Studi kasus pada Universitas Sumatera Utara)
1. Brand awareness (X1).
2. Perceived quality (X2).
3. Brand
association (X3).
4. Brand loyalty (X4).
5. Purchase decision (Y)
Multiple regression
very significant
influence on purchasing decisions Honda
motorcycles at the USU brand loyalty, brand associations impression of quality and
significantly influence the purchasing
decisions of Honda motorcycles at the University of North Sumatra, while the variable has no significant effect of brand awareness to consumers in making purchasing decisions of Honda motorcycles, while the most dominant variable influence on purchase decisions Honda motorcycles are brand loyalty variable.
No Researcher(year) Tite Research
Variable
Research Methodology
Conclusion 2. Dr. Hsin Kuang
Chi, Dr. Huery Ren
Yeh, Ya Ting Yang,(2009)
The Impact of Brand Awareness on Consumer Purchase Intention: The Mediating Effect of Perceived Quality and Brand Loyalty 1.Brand awareness 2.Perceived quality 3.Brand loyalty 4.Purchase intention Regression analysis
(a) the relations among the brand
awareness, perceived quality and brand loyalty for purchase intention are significant and positive effect,(b) perceived
quality has a positive effect on brand loyalty, (c) perceived quality will meditate the effects between brand
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39 awareness
and purchase intention, and (d) brand loyalty will mediate the effects between brand
awareness and purchase intention.
The study suggests that cellular phone
manufacturers ought to build a brand and promote its brand awareness through sales promotion, advertising, and other marketing activities.
No Researcher(year) Title Research
Variable
Research Methodology
Conclusion 3. N. Mackay, H.
Spies, C. Williams, L.R.
Jansen van Rensburg & D.J.
Petzer (2012)
The influence of service b rand equity on the strength of brand
relationships in the fast food industry 1.brand awareness 2.perceived quality 3.brand differentiation 4.brand association 5.brand trust Multiple regression
It is evident from the study that fast food organisations can improve brand relationships by focusing on improving three dimensions of service brand equity, namely brand
awareness, brand association and brand trust. This can be realised when fast food outlets remind
customers of their brand and uphold the quality and value of fast food products provided, as well as the provision of effective action in response to any negative customer experiences
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40
No Researcher(year) Title Research
Variable
Research
Methodology Conclusion
4. Hui-Chu Chen And Robert D. Green (2008) Brand equity, marketing strategy, and consumer income: A hypermarket study 1.Brand equity 2.Marketing strategy 3.Consumer income Using comparative (ANOVA) and causal (multiple regression) statistical analysis
findings are similar for low and high income groups and some differences with middle income shoppers
No Researcher(year) Title Research
Variable
Research
Methodology Conclusion
5. Bisri Mustofa, Sutopo (2011) ANALISIS PENGARUH EKUITAS MEREK TERHADAP KEPUTUSAN PEMBELIAN SEPEDA MOTOR MEREK YAMAHA 1.Brand awareness 2.Brand loyalty 3.Perceived quality 4.Brand association multiple regression Hypothesis testing using t-tests showed that brand awareness (X1), perceived quality (X2), brand association (X3), and brand loyalty (X4) have positivf and significan effect on buying decision. Then using the F test is known that a well-deserved four independent variables to test the dependent variable. Figures Adjusted R Square of 0,738indicates that 73,8 percent of purchase decisions variation can be explained by the four independent variables in the regression equation.
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41 H. Relationship Between Variables Research
1. The relationship between Brand Awareness toward Purchase Decision Research has been done by Fadli and Qamariah (2008), the results of hypothesis testing showed that brand awareness variables no significant effect on consumers in making purchasing decisions Honda motorcycles. Based on previous studies encourage researchers to reexamine whether brand awareness variable influence on purchase decisions. Thus, the proposed hypothesis is as follows:
H1: There is significant relationship between brand awareness by
purchasing decisions.
2. The relationship beetween perceived brand quality toward Purchase Decision
Research has been done by Fadli and Qamariah (2008), the results of hypothesis testing showed that the variable impression of perceived brand quality significantly influence consumers in making purchasing decisions Honda motorcycles.
Based on previous studies encourage researchers to reexamine whether the variable impression of quality brand influence on purchase decisions. Thus, the proposed hypothesis is as follows:
H2: There is a significant correlation between the perceived brand quality
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42 3. The relationship beetween Brand Association toward Purchase Decisions
Research has been done by Fadli and Qamariah (2008), the results of hypothesis testing showed that the variables significantly influence brand associations consumers in making purchasing decisions Honda motorcycles. Based on previous studies encourage researchers to reexamine whether the variables brand associations influence on purchase decisions. Thus, the proposed hypothesis is as follows:
H3: There is a significant relationship between brand associations with
purchasing decisions.
4. The relationship between Brand Loyalty toward Purchase Decision
Research has been done by Fadli and Qamariah (2008), the results of hypothesis testing showed that brand loyalty variables significantly influence consumers in making purchasing decisions Honda motorcycles. Based on previous studies encourage researchers to reexamine whether brand loyalty variable influence on purchase decisions. Thus, the proposed hypothesis is as follows:
H4: There is a significant relationship between brand loyalty by
purchasing decision.
5. The relationship between Brand Awareness,Perceived Brand Quality, Brand Association, Brand Loyalty, toward Purchase Decision
Research has been done by Fadli and Qamariah (2008), the results of hypothesis testing showed that the variables of brand awareness,
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43 perceived brand quality, brand association, and brand loyalty influence on purchase decisions.
Based on previous studies encourage researchers to reexamine whether the variables of brand awareness, brand image quality, brand associations, and brand loyalty influence on purchase decisions. Thus, the proposed hypothesis is as follows:
H5: There is a significant relationship between brand awareness,
perceived brand quality, brand associations, and brand loyalty with purchasing decisions.
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44 I. Theoritical Frameworks
Table 2.4
Theoritical Framework
Customer Garuda Indonesia in jabodetabek
Brand Loyalty Brand
Association Perceived Brand
Quality
Purchase Decision
Validity and Reliability Test
Classical Assumption Test : 1. Normality Test 2. Multicollinearity Test
3. Heterocedasticity Test
Hypothesis Test: 6. T Test
7. F Test
4. Multiple Regression Test:
Conclusion
5.Coefficient of determination Brand
Awareness
The influence of brand awareness, perceived brand quality, brand association,brand loyalty toward customer purchase
decision to choose garuda indonesia airlines (case study: customer garuda indonesia in jabodetabek)”.
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45 J. Hypothesis
Based on the formulation of the problem, the purpose of research and theoretical basis, it can be put forward a hypothesis that still require testing to prove the truth, which is:
1. Ho : β1 = 0 ; there is no influence of brand awareness on purchase
decisions.
Ha : β1 ≠ 0 ; there is influence of brand awareness on purchase decisions.
2. Ho : β2 = 0 ; there is no influence between perceived brand quality on
purchase decisions.
Ha : β2 ≠ 0 ; there is influence between perceived brand quality on
purchase decisions.
3. Ho : β3 = 0 ; there is no influence between brand association on purchase
decisions.
Ha : β3 ≠ 0 ; there is influence between brand association on purchase
decisions.
4. Ho : β4 = 0 ; there is no influence between brand loyalty on purchase
decisions.
Ha : β4 ≠ 0 ; there is influence between brand loyalty on purchase
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46 5. Ho : β1,2,3,4 = 0 ; there is no influence of brand awareness, perceived brand
quality, brand associations, and brand loyalty simultaneously on purchase decisions.
Ha : β1,2,3,4 ≠ 0 ; there is influence of brand awareness, perceived brand
quality, brand associations, and brand loyalty simultaneously on purchase decisions.
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47 CHAPTER III
RESEARCH METODOLOGY A. Research scope
The scope of this research is the field of marketing that focuses on how much influence brand awareness (X1), perceived brand quality (X2), brand association (X3), and brand loyalty (X4) as the independent variable on purchase decisions (Y). This research conducted in Soekarno-Hatta International Airport on September 2014 until March 2015.
B. Sampling Method 1. Population
Population is the generalization region consisting of objects or subjects that have certain qualities and characteristics defined by the researchers to learn and then drawn conclusions (Sugiyono, 2007: 115) in addition to the population could also be defined as a sum total that includes all members of the study (Istijanto, 2009: 113). The population in this study is that consumers Garuda Indonesia in Jabodetabek
2. Sample
The sample is part of the number and characteristics possessed by the population. When a large population and researchers may not learn all that there is in the population, for example, because of limited funds, manpower, time, the researcher can use the sample drawn from that population (Sugiyono, 2007: 116). According Istijanto (2009: 113) as a part of the sample is drawn from the population. As a result, the sample is
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48 always a smaller part of the population. The technique of sampling using the nonprobability sampling technique.
This technique does not use the selection procedure but rather an opportunity to rely on personal judgment of researchers (Malhotra, 2009: 371). The sampling technique used by the author is the sampling method (judgment sampling) that samples taken in accordance with the desired characteristics of the population, yet respondents were concerned, anytime and anywhere be found, used as elements of the study sample (Hamid, 2007: 32). Sampling was based on the consideration that the respondents ever buy or use the services of Garuda Indonesia. Samples will be selected by the author as a source of data required for this study is the consumer Garuda Indonesia in Soekarno-Hatta International Airport who lived in Jabodetabek. In this study, sampling adapted to the theory of Roscoe in Sugiyono (2009: 129-130), that the sample size is appropriate when the research will perform a multivariate analysis, the number of members of the sample of at least 10 times the number of variables studied. The number of variables in the study was 5, so that the number of samples required by 50 (10 x 5) sample of respondents on Garuda Indonesian consumers Jabodetabek.
C. Data Collection Method
The information generated by the marketing research is the end result of processing during the research process. Information is basically starting from raw materials called the data so it is often also referred to as
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49 raw data (Istijanto, 2009: 35). In obtaining the data, the author uses primary data and secondary data
1. Primary Data
Primary data is data obtained directly from the source. Meanwhile, according Istijanto (2009: 44) The original primary data collected by researchers to answer the research question specifically. Primary data in this study were obtained in full from the respondent through a list of questions. Primary data collected includes identifying data of respondents, respondents' opinions about decisions concerning the purchase of brand awareness, perceived brand quality, brand association, brand loyalty on Garuda Indonesia.
Primary data collection method used in this research is a method of distributing a questionnaire on consumer Garuda Indonesia. Respondents are consumers who never use or purchase services in the Greater Jakarta Garuda Indonesia. Data collection will be conducted through a questionnaire submitted to each of the selected respondents. With a personal questionnaire, researchers can deal directly with the respondent and can provide the necessary explanations. The data in this study obtained directly from the questionnaires (questionnaire) by the respondent. The questionnaire in this study consisted of questions derived from each study variable indicators.
The questions on the questionnaire prepared by the Likert scale. Likert scale is a widely used scale that asked the respondent indicates the
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50 degree of approval or disapproval of each of a series of statements mengenaik stimulus object. Generally measurements using five response categories ranging from "strongly agree" and "strongly disagree" (Malhotra, 2009: 298). Scale 1-5 to obtain data that is numerical and given a score or value. For the category of questions with answers strongly disagree or strongly agree.
Table 3.1 Likert Scale
No Answer Score
1 Strongly Agree 5
2 Agree 4
3 Doubtful 3
4 Disagree 2
5 Strongly Disagree 1
Source: Maholtra, 2009
Figures 1 (one) shows that the respondents giving negative responses (strongly disagree) to the questions posed, while the number 5 (five) showed positive responses (strongly agree).
2. Secondary Data
According Istijanto (2009: 38) secondary data (secondary data) means both or not directly from the source instead of the other party. Secondary data is a type that is not cultivated itself was collected by
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51 researchers. This data can be obtained from the literature, previous research journals, magazines, and data necessary documents in this study. D. Data Analysis Method
1. Data Quality Test
This stage is the stage that is very important and decisive. At this stage the data is processed such that it successfully concluded the truth that can be used to address issues raised in the study. Data analysis methods used in this study using multiple linear regression analysis.
a. Validity Test
Validity is the level of research instruments to express the data in accordance with the matter to be disclosed. In other words, the validity indicates the extent to which a measuring instrument that can be used to measure what should be measured. Validity test is used to determine the feasibility of the items in a list of questions to define a variable. The list of questions generally support a group of specific variables. A questionnaire as valid if there are similarities between the data collected by the data actually happened on the object under study. (Sugiyono, 2004: 172).
In determining whether or not an item that will be used, usually to test the significance of the correlation coefficient in the minimum limit of correlation of 0.30, meaning that an item is considered valid if the total score is greater than 0.30 (Duwi Priyatno, 2010: 90).
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52 b. Relialibility Test
Reliability test is a measure of the stability and consistency of the respondents in answering the issues related to the constructs question is a variable dimension and are arranged in the form of a questionnaire. Said to be reliable or reliable instrument if someone answers to questions are consistent or stable from time to time. Reliability test is used to measure the variables used that are completely free of errors so as to produce a constant result though was tested several times. Reliability calculations performed using Cronbach Alpha statistical test. A construct or variable said to be reliable if the Cronbach Alpha value> 0.60 (Nunnally in Ghozali, 2005)
E. Classical Assumption Test 1. Normality Test
Normality test aims to test whether the regression model, or residual confounding variable has a normal distribution (Ghozali, 2005: 110). Good data and fit for use in research is one that has a normal distribution. Normality of data can be viewed in several ways, including by looking at the normal curve p-plot. A variable is said to be normal if the distribution of the image data points are spread around the diagonal line, and the spread of the data points in the direction to follow a diagonal line.
2. Multicollinearity Test
According Ghozali (2005: 91), multicollinearity test aims to test whether in the regression model found a correlation between the
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8.
Brand Association Testing
Case Processing Summary
N %
Cases
Valid 20 100.0
Excludeda 0 .0
Total 20 100.0
a. Listwise deletion based on all variables in the procedure.
Reliability Statistics
Cronbach's Alpha
Cronbach's Alpha Based on
Standardized Items
N of Items
.876 .880 7
Item-Total Statistics
Scale Mean if Item Deleted
Scale Variance if Item Deleted
Corrected Item-Total Correlation
Squared Multiple Correlation
Cronbach's Alpha if Item
Deleted
BSO1 22.7500 27.566 .476 .333 .881
BSO2 22.9000 22.516 .813 .693 .840
BSO3 23.0500 19.208 .773 .977 .844
BSO4 22.9500 26.892 .379 .675 .887
BSO5 23.1500 20.661 .914 .862 .823
BSO6 23.0000 23.579 .593 .608 .866
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9.
Brand Loyalty Testing
Case Processing Summary
N %
Cases
Valid 20 100.0
Excludeda 0 .0
Total 20 100.0
a. Listwise deletion based on all variables in the procedure.
Reliability Statistics
Cronbach's Alpha
Cronbach's Alpha Based on
Standardized Items
N of Items
.796 .814 5
Item-Total Statistics
Scale Mean if Item Deleted
Scale Variance if Item Deleted
Corrected Item-Total Correlation
Squared Multiple Correlation
Cronbach's Alpha if Item
Deleted
BL1 14.9500 6.366 .647 .774 .734
BL2 14.9000 6.832 .662 .834 .730
BL3 15.1500 7.818 .314 .638 .849
BL4 14.8000 7.326 .638 .641 .742
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10.
Customer Purchase Decision Testing
Case Processing Summary
N %
Cases
Valid 20 100.0
Excludeda 0 .0
Total 20 100.0
a. Listwise deletion based on all variables in the procedure.
Reliability Statistics
Cronbach's Alpha
Cronbach's Alpha Based on
Standardized Items
N of Items
.817 .829 6
Item-Total Statistics
Scale Mean if Item Deleted
Scale Variance if Item Deleted
Corrected Item-Total Correlation
Squared Multiple Correlation
Cronbach's Alpha if Item
Deleted
CPD1 19.2500 14.724 .419 .657 .818
CPD2 19.1500 11.818 .764 .790 .747
CPD3 19.2000 14.589 .468 .537 .810
CPD4 19.3000 10.537 .570 .609 .812
CPD5 19.5000 12.474 .650 .606 .773
CPD6 19.1000 12.200 .722 .622 .758
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Model R R Square Adjusted R
Square
Std. Error of the Estimate
1 .858a .737 .718 1.09443
a. Predictors: (Constant), BL, BWNS, BQ, BSO b. Dependent Variable: CPD
ANOVAa
Model Sum of Squares df Mean Square F Sig.
1
Regression 184.306 4 46.077 38.469 .000b
Residual 65.877 55 1.198
Total 250.183 59
a. Dependent Variable: CPD
b. Predictors: (Constant), BL, BWNS, BQ, BSO
Coefficientsa
Model Unstandardized Coefficients Standardized
Coefficients
t Sig. Collinearity Statistics
B Std. Error Beta Tolerance VIF
1
(Constant) 1.535 2.311 .664 .509
BWNS .258 .096 .224 2.687 .010 .691 1.447
BQ .422 .094 .431 4.495 .000 .520 1.924
BSO .155 .097 .156 1.601 .115 .504 1.986
BL .190 .075 .237 2.531 .014 .544 1.838
a. Dependent Variable: CPD
Collinearity Diagnosticsa
Model Dimension Eigenvalue Condition Index Variance Proportions
(Constant) BWNS BQ BSO BL
1
1 4.983 1.000 .00 .00 .00 .00 .00
2 .009 23.821 .09 .04 .00 .00 .64
3 .003 39.170 .04 .18 .85 .00 .24
4 .002 44.877 .66 .74 .04 .01 .05
5 .002 49.238 .21 .05 .11 .99 .07
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Residuals Statisticsa
Minimum Maximum Mean Std. Deviation N
Predicted Value 23.2929 29.4998 26.3833 1.76744 60
Std. Predicted Value -1.749 1.763 .000 1.000 60
Standard Error of Predicted Value
.156 .480 .308 .071 60
Adjusted Predicted Value 23.1835 29.6496 26.3743 1.78123 60
Residual -2.35362 1.81878 .00000 1.05668 60
Std. Residual -2.151 1.662 .000 .966 60
Stud. Residual -2.226 1.746 .004 1.005 60
Deleted Residual -2.56980 2.00772 .00903 1.14549 60
Stud. Deleted Residual -2.312 1.780 -.001 1.021 60
Mahal. Distance .217 10.377 3.933 2.233 60
Cook's Distance .000 .112 .017 .022 60
Centered Leverage Value .004 .176 .067 .038 60
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