âTHE INFLUENCE OF CUSTOMER DISSATISFACTION, NEEDS OF LOOKING FOR VARIETY, PRODUCT PRICE AND COMPETITORS ADVERTISEMENT ON THE BRAND SWITCHING DECISION OF COSMETIC PRODUCTSâ.
THESIS
“THE INFLUENCE OF CUSTOMER DISSATISFACTION, NEEDS OF
LOOKING FOR VARIETY, PRODUCT PRICE AND COMPETITORS
ADVERTISEMENT ON THE BRAND SWITCHING DECISION OF
COSMETIC PRODUCTS”
Study in: Padang City
By:
Hilda Yulia Erman
0910524117
Thesis Submitted in Partial Fulfillment of part of the Requirement for
Bachelor Degree in Management
DEPARTMENT OF MANAGEMENTFACULTY OF ECONOMICS
UNIVERSITY OF ANDALAS
2013
“THE INFLUENCE OF CUSTOMER DISSATISFACTION, NEEDS OF LOOKING FOR
VARIETY, PRODUCT PRICE AND COMPETITORS ADVERTISEMENT ON THE BRAND
SWITCHING DECISION OF COSMETIC PRODUCTS
CASE IN: PADANG CITY.”
Bachelor Thesis by: Hilda Yulia Erman
Supervisor: Dr. Harif Amali Rivai, SE, MSi
Abstract
This research investigates the relationship between“The Influence of Customer Dissatisfaction, Needs
of Looking for Variety, Product Price, and Competitors Advertisement on the Brand Switching
Decision of Cosmetic Product. (Case in: Padang City).” The data obtained through questionnaire.
The samples were drawn from 150people who ever did the brand switching of cosmetic product. The
data analyzed by using SPSS 16. In this research there are five variables, those are independent
variable which are customers dissatisfaction, needs of looking for variety, product price, and
competitors advertisement, the dependent variable which is brand switching. The findings indicated
that customer dissatisfactionhas significant to brand switching, needs of looking for variety has no
significant to motivation, product price has significant to brand switching and competitor
advertisement has significant to brand switching.
Keywords:Customer Dissatisfaction, Needs og Looking for Variety, Product Price, Competitor
Advertisement, Brand Switching Decision.
TABLE OF CONTENTS
COVER
LETTER OF THESIS APPROVAL
LETTER OF STATEMENT
ABSTRACT
ACKNOWLEDGEMENT ............................................................................i
TABLE OF CONTENTS ..............................................................................iv
LIST OF TABLES ........................................................................................viii
LIST OF FIGURES ......................................................................................ix
LIST OF APPENDIXES ..............................................................................x
CHAPTER I
INTRODUCTION
1.1 Background of the Research ..........................................1
1.2 Problem Statements....................................................... 6
1.3 Research Objectives ....................................................... 7
1.4 Research Contributions ..................................................7
1.5 Structure of The Research ..............................................8
CHAPTER II REVIEW OF THE LITERATURE
2.1 Basic Theory ..................................................................9
2.1.1 Concept of Brand ...............................................9
2.1.2 Brand Switching .................................................10
2.1.3 The concept of brand loyalty ..............................11
2.1.4 Function of Brand Loyalty .................................12
iv
2.1.5 Consumer Dissatisfaction ...................................13
2.1.6 Need Of Looking Variety Products ....................14
2.1.7 Price of Product ..................................................16
2.1.8 Competitor Product Advertising ........................18
2.2 Hypothesis development and Theoretical frameworks ..
2.2.1
20
Customers Dissatisfaction and Brand
Switching ............................................................20
2.2.2
Need Of Looking Variety Products and Brand
Switching ............................................................21
2.2.3
Price and Brand Switching .................................22
2.2.4
Competitor Product Advertising and Brand
Switching ............................................................23
2.3 Conceptual Framework ..................................................24
CHAPTER III RESEARCH METHODOLOGY
3.1 Research Design .............................................................25
3.2 Population and Sample ...................................................25
3.3 Sample Collection Techniques .......................................26
3.4 Data ................................................................................26
3.5 Research Variables and Operational Definitions ...........27
3.5.1 Research Variables .............................................27
3.5.2 Operational Definitions ......................................27
3.6 Variable Measurement ...................................................29
3.6.1 Checking for Data Entry .......................................29
3.7 Data Analysis .................................................................30
v
CHAPTER IV RESULTS AND DISCUSSIONS
4.1 Characteristics of Respondents ......................................34
4.1.1 Characteristic of Respondents Based on Age ....34
4.1.2 Characteristics of Respondents Based on
Profession ...........................................................35
4.1.3 Characteristic of respondents based on income/
allowance in a month.......................................... 35
4.1.4
Characteristic respondents based on the brand of
cosmetic ..............................................................36
4.1.5
Characteristic respondents based on long use
cosmetic ..............................................................36
4.1.6
Characteristic respondents base on the previous
brand ...................................................................37
4.1.7
Characteristic respondents based on the reason
do brand switching .............................................38
4.2 Description of Questionnaire Items on each Variable ...38
4.2.1 Factors Affecting Brand Switching ....................38
4.3 Validity and Reliability Test ..........................................42
4.3.1 Validity Test .......................................................42
4.3.2 Reliability Test ...................................................44
4.3.3 Normality Test ....................................................45
4.4 Multiple Regression Analysis Result ............................46
4.4.1 Hypothesis Testing .............................................48
4.4.2 Coefficient of Determination .............................50
vi
4.5 Discussion ......................................................................51
4.5.1 Consumer Dissatisfaction influences the Brand
Switching Decision ............................................51
4.5.2 The influence of Need of Looking for Variety to
the Brand Switching Decisions .........................52
4.5.3 The influence of Product Price on the Brand
Switching Decision ............................................52
4.5.4 The influence of Competitor Product advertisement
to the Brand Switching Decision ........................53
CHAPTER V CONCLUSION,
IMPLICATION,
LIMITATIONS
AND
RECOMMENDATION OF RESEARCH
5.1 Conclusion .....................................................................54
5.2 Implication .....................................................................56
5.3 Limitations of Research .................................................57
5.4 Recommendation ...........................................................58
REFERENCES
APPENDIXES
vii
“THE INFLUENCE OF CUSTOMER DISSATISFACTION, NEEDS OF
LOOKING FOR VARIETY, PRODUCT PRICE AND COMPETITORS
ADVERTISEMENT ON THE BRAND SWITCHING DECISION OF
COSMETIC PRODUCTS”
Study in: Padang City
By:
Hilda Yulia Erman
0910524117
Thesis Submitted in Partial Fulfillment of part of the Requirement for
Bachelor Degree in Management
DEPARTMENT OF MANAGEMENTFACULTY OF ECONOMICS
UNIVERSITY OF ANDALAS
2013
“THE INFLUENCE OF CUSTOMER DISSATISFACTION, NEEDS OF LOOKING FOR
VARIETY, PRODUCT PRICE AND COMPETITORS ADVERTISEMENT ON THE BRAND
SWITCHING DECISION OF COSMETIC PRODUCTS
CASE IN: PADANG CITY.”
Bachelor Thesis by: Hilda Yulia Erman
Supervisor: Dr. Harif Amali Rivai, SE, MSi
Abstract
This research investigates the relationship between“The Influence of Customer Dissatisfaction, Needs
of Looking for Variety, Product Price, and Competitors Advertisement on the Brand Switching
Decision of Cosmetic Product. (Case in: Padang City).” The data obtained through questionnaire.
The samples were drawn from 150people who ever did the brand switching of cosmetic product. The
data analyzed by using SPSS 16. In this research there are five variables, those are independent
variable which are customers dissatisfaction, needs of looking for variety, product price, and
competitors advertisement, the dependent variable which is brand switching. The findings indicated
that customer dissatisfactionhas significant to brand switching, needs of looking for variety has no
significant to motivation, product price has significant to brand switching and competitor
advertisement has significant to brand switching.
Keywords:Customer Dissatisfaction, Needs og Looking for Variety, Product Price, Competitor
Advertisement, Brand Switching Decision.
TABLE OF CONTENTS
COVER
LETTER OF THESIS APPROVAL
LETTER OF STATEMENT
ABSTRACT
ACKNOWLEDGEMENT ............................................................................i
TABLE OF CONTENTS ..............................................................................iv
LIST OF TABLES ........................................................................................viii
LIST OF FIGURES ......................................................................................ix
LIST OF APPENDIXES ..............................................................................x
CHAPTER I
INTRODUCTION
1.1 Background of the Research ..........................................1
1.2 Problem Statements....................................................... 6
1.3 Research Objectives ....................................................... 7
1.4 Research Contributions ..................................................7
1.5 Structure of The Research ..............................................8
CHAPTER II REVIEW OF THE LITERATURE
2.1 Basic Theory ..................................................................9
2.1.1 Concept of Brand ...............................................9
2.1.2 Brand Switching .................................................10
2.1.3 The concept of brand loyalty ..............................11
2.1.4 Function of Brand Loyalty .................................12
iv
2.1.5 Consumer Dissatisfaction ...................................13
2.1.6 Need Of Looking Variety Products ....................14
2.1.7 Price of Product ..................................................16
2.1.8 Competitor Product Advertising ........................18
2.2 Hypothesis development and Theoretical frameworks ..
2.2.1
20
Customers Dissatisfaction and Brand
Switching ............................................................20
2.2.2
Need Of Looking Variety Products and Brand
Switching ............................................................21
2.2.3
Price and Brand Switching .................................22
2.2.4
Competitor Product Advertising and Brand
Switching ............................................................23
2.3 Conceptual Framework ..................................................24
CHAPTER III RESEARCH METHODOLOGY
3.1 Research Design .............................................................25
3.2 Population and Sample ...................................................25
3.3 Sample Collection Techniques .......................................26
3.4 Data ................................................................................26
3.5 Research Variables and Operational Definitions ...........27
3.5.1 Research Variables .............................................27
3.5.2 Operational Definitions ......................................27
3.6 Variable Measurement ...................................................29
3.6.1 Checking for Data Entry .......................................29
3.7 Data Analysis .................................................................30
v
CHAPTER IV RESULTS AND DISCUSSIONS
4.1 Characteristics of Respondents ......................................34
4.1.1 Characteristic of Respondents Based on Age ....34
4.1.2 Characteristics of Respondents Based on
Profession ...........................................................35
4.1.3 Characteristic of respondents based on income/
allowance in a month.......................................... 35
4.1.4
Characteristic respondents based on the brand of
cosmetic ..............................................................36
4.1.5
Characteristic respondents based on long use
cosmetic ..............................................................36
4.1.6
Characteristic respondents base on the previous
brand ...................................................................37
4.1.7
Characteristic respondents based on the reason
do brand switching .............................................38
4.2 Description of Questionnaire Items on each Variable ...38
4.2.1 Factors Affecting Brand Switching ....................38
4.3 Validity and Reliability Test ..........................................42
4.3.1 Validity Test .......................................................42
4.3.2 Reliability Test ...................................................44
4.3.3 Normality Test ....................................................45
4.4 Multiple Regression Analysis Result ............................46
4.4.1 Hypothesis Testing .............................................48
4.4.2 Coefficient of Determination .............................50
vi
4.5 Discussion ......................................................................51
4.5.1 Consumer Dissatisfaction influences the Brand
Switching Decision ............................................51
4.5.2 The influence of Need of Looking for Variety to
the Brand Switching Decisions .........................52
4.5.3 The influence of Product Price on the Brand
Switching Decision ............................................52
4.5.4 The influence of Competitor Product advertisement
to the Brand Switching Decision ........................53
CHAPTER V CONCLUSION,
IMPLICATION,
LIMITATIONS
AND
RECOMMENDATION OF RESEARCH
5.1 Conclusion .....................................................................54
5.2 Implication .....................................................................56
5.3 Limitations of Research .................................................57
5.4 Recommendation ...........................................................58
REFERENCES
APPENDIXES
vii