Conceptual Model Hypothesis LITERATURE REVIEW

29 mix the variable dis not significantly influence the purchase decision because the t count value is smaller than t table that is 1,1051,672. While the variable word of mouth is partially significant effect on purchase decisions because t count value is greater than the table t value 5, 3121,672. So means word of mouth more signicantly influence to purchase decision than promotional mix.

J. Conceptual Model

Conceptual model used to describe the influence of product differentiation, image differentiation and word of mouth to purchase decision of Maichi chip. There is inter-correlation among the variables between independent variables and dependent variables. Independent variable consist product differentiation, image differentiation and word of mouth. Which is dependent variable is purchase decision. 30 That relationship can be seen in the chart as follows: Figure 2.3 Conceptual Model

K. Hypothesis

According to Malhotra 2009:78 hypothesis is an unproven statement or proposition about a factor or phenomenon that is of interest to the researcher. The hypothesis can also be stated as a posible answer to the research question. A useful hypothesis is a predictable statement which may include a prediction explanation. 31 Based on problem definition and literature review that explained already, the hypothesis development can be formulated as: 1 The relationship between product differentiation and purchase decision According to Siti marliah 2009:01 differentiation is a chain of differences which means to differentiate company’s offering from competitor’s offering. The choice of goods among many products is always based on differences, implicit or explicit. A consumer will consider differentiation offering in choosing products that will be bought; they will be influenced by products differentiation. So product differentiation can affect purchase decision. Product differentiation is the process in which companies offer products or services with unique attributes to customers. Customers crave product distinctions to make purchasing decisions. Laura Acevedo: www.eHow.com So based on explanation above the the hypothesis can be drawn as follows: H1 : Product differentiation has significant influence to purchase decision 32 2 The relationship between image differentiation and purchase decision A company brand image should represent the products benefits and the company positioning on the market. The image represents the promise that the products will perform to expectations of the customers. A good brand that process good image would make the customer feel uncomfortable buying from any other brand. That mean image differentiation affect purchase decision. Jacqueline and Marjorie, 2011:11 According to Siti marliah 2009:01 differentiation is a chain of diff erences which means to differentiate company’s offering from competitor’s offering. The choice of goods among many products is always based on differences, implicit or explicit. A consumer will consider the differentiation offering in choosing products that would buy; they will be influenced by image differentiation. So image differentiation can affect to purchase decision. So based on explanation above the the hypothesis can be drawn as follows: H1 : Image differentiation has significant influence to purchase decision 33 3 The relationship between word of mouth and purchase decision Word of Mouth is the sound of new ideas up to our ears in several ways such as; telling stories, dialogs, conversations and shared experiences radio.Word of mouth from family, friends, peers and relatives has greater impact on the buying decision than other sources such as the company staff and salesmen.Word of mouth may be positive or negative the customers who are satisfied will continue purchasing the product. So there is a significant statistically relationship between the buying decision of the final consumer, and the source of word of mouth. Ahmad M. Zamil, 2011:24 According to Mark Hughes 2007:31 consumers use word of mouth to talk about dozens of brand each day, from media and entertainment products such as movies, TV shows and publications, for example to food products, travel services and retail stores. Word-of-mouth has been proven to be an effective method of obtaining useful information for purchase decisions. So based on explanation above the the hypothesis can be drawn as follows: H1 : Word of mouth has significant influence to purchase decision 34

CHAPTER III RESEARCH METHODOLOGY

A. Scope of Research

This research was conducted to analyze the influence of differentiation strategy product differentiation, image differentiation and word of mouth to purchase decision on Maichi Chip product. The research will be conducted at Sharif Hidayatullah State Islamic University Jakarta, its implementation in March 2012 until the completion writing, determination of the target is consumers who have purchased product Maichi Chip. The case studies of Maichi Consumer Sharif Hidayatullah State Islamic University in Jakarta because Maichi product very popular in young people and usually Maichi sold among students like in State Islamic University in Jakarta. This research used a method quantitative causal research that aims to clarify the effect of independent variable Product Differentiation X1, Image Differentiation X2 and Word Of Mouth X3 to dependent variable Purchasing Decision Y.

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