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Independent variables in this research are the product differentation X1, image differentation X2 and word of mouth X3. Dependent variable is
purchase decision Y. These will be specified independent variable and the dependent variable through operational definition as follows:
1. Product Differentiation X1
According to Cravens and Piercy 2009:98 product differentation occur when a product offering is perceived by the buyer as different from the
competition on any physical or nonphysical product characteristic, including price.
Based on Kotler and Keller 2012: 352 the product differentiation consists of:
a. Form: size, shape, physical structure of a product b. Feature: that supplement their basic function. According to Kotler and
Amstrong 2006:348 feature is the variety of products offered c. Customization: as companies have grown proficient at gathering
information about individual customers and business partner and as their factories are being designed more flexibly, they have increased their
ability to individualize market offerings, messages and media. d. Conformance quality: the degree to which all produced units are identical
and meet promised specifications. e. Performance quality: level at which the p
roduct’s primary characteristics operate, quality is increasingly important for differentiation as companies
adopt a value model and provide higher quality for less money.
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f. Durability: a measure of the product’s expected operating life under
natural or stressful condition is a valued attribute for vehicles, kitchen appliances and other durable goods.
g. Reliability : a measure of probability that a product will not
malfunction or fail within a specified time period. h. Repair ability: measure the ease of fixing a product when it malfunction or
fails. i. Style: describes
the product’s look and feel to the buyer.
2. Image Differentiation X2
Based on Amstrong Keller 2009 :220 image differentiation is a company or brand image should convey the product’s distinctive benefits and
positioning. According to Philip Kotler 1994: 295 the main of image differentiation
are:
a. Symbol : a strong image consists of one more symbols that trigger
company or brand recognition. The company and brand logos should be designed for instant recognition.
b. Media : the message should be replicated in other publication,
such as annual report, brochure, and catalogs. c. Atmosphere : the physical space in which the organization produces or
delivers its products and services becomes another powerful image generator.
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d. Even : a company can build an identity through the type of events
it sponsors and create event to explode a bombshell.
3. Word Of Mouth X3
