CONSUMER ATTITUDES TOWARD SMARTPHONE PRODUCT (Study on Smartphone Blackberry)

SKRIPSI

Compiled to complete the requirements to achieve Bachelor of Economics Degree in Sebelas

Maret University

By :

Dewantika Noor Hidayati Kusmono

F1210018

FACULTY OF ECONOMICS SEBELAS MARET UNIVERSITY SURAKARTA

CONSUMER ATTITUDES TOWARD HIGH TECHNOLOGY PRODUCT (Study on Smartphone Blackberry)

Dewantika Noor Hidayati Kusmono NIM F1210018

The objective of this research is to examine the relationship between quality, perceive usefulness, easy to usefullness, and prestige as atecendents of consumer attitudes. This research also examine the relationship between consumer attitudes and intention to buy Blackberry.

The survey toward 200 samples were conducted in Sebelas Maret University by using a purposive sampling method. The construct in the model were measured using five point likert scale.

The results are consumer attitudes toward Blackberry is influenced by perceived quality, prestige, usefulness, and ease to use. Specifically, perceived quality and prestige play important role in forming consumer attitudes.

In the relationship between perceived quality, prestige, usefulness, ease to use, and intention to buy, consumer attitudes play a mediation role fully. It means, there is no direct effect of perceived quality, prestige, usefulness, ease to use on intention to buy before going through the mediation variable, consumer attitudes

Keywords : Quality, Consumer Attitudes, Prestige, Usefulness, Ease to use, Intention to buy, Blackberry

“PMA, Positive Mental Attitude.” PAARSBAT

“Simplicity is the keynote of all true elegance.” Coco Chanel

“Yesterday is history, tomorrow is a mystery, today is a gift of God, which is why we call it

the present.” Bil Keane

“A respectable appearance is sufficient to make people more interested in your soul” Karl Lagerfeld

“The most beautiful makeup of a woman is passion. But cosmetics are easier to buy.” Yves Saint-Laurent

Along with prayer, love and support I dedicate this thesis to :

Dear my parents , My beloved Mom Dra Kustinah and My Great father Drs Sumono,MSi. I hope this can make you proud, I dedicated special for you, my hearts.

My supervisor , my inspiration, and my guruu Mr Dr Budhi Haryanto, MM. My little brother , Muhammad Rahardian Kusmono, you are a great barometer for

chalenge me to be the best sister. My Beloved sister , Wardani, you are a nice and kind big sister, I love you. Paarsbat and Paars , my own brand, what I've been striving and will always being part

of my life.

M. Adhitya Farkhan Zamzami, you are the best partner, friends, and teamworks. My addicted junior friends :

Anisa Febrina, Anita Selviana, Desi Nursita Ratnasari, Unin Retriana Suparno, Surya Adi Putra, Ulfa Wachidiyah Zuqri.

My adorable high school friends : Cinandhi Nur Mega, Septiara Silvany Putri, Immas Anggun Cahaya, Twins Anisa and Anita

Kesuma Arum, Ikke Novi Asnia Putri, Faradhiba Zeena Buamona, Anindya Mutiara, Kharisma.

My Happy friends : Lolita Ayu Wulansari, Gandess Praseptasari, Fatimatuz Zahra, Fitri Puspaningrum, Andrew

Rory Wardhana, Dea Ardyanda, Robby Dion (Pendopo Indonesia), Gunung Dewantara (Elmer), Suci Utami (Eclair), Made Ayu (De'Ar), Fenny (Lady Tjotjo), Clara Chamichi, Dian Setyo, Natasha Windura, Shofia Kanza (dinggo).

And everyone around who always colouring every single day. Thank you so much, world.

Praise be to Allah, The cherisher and sustainer of the worlds; God who has been giving His blessing and mercy to the writer to complete the thesis entitled "Consumer Attitudes Toward Smartphone Product ( Study on Smartphone Blackberry)."

This thesis is submitted to fulfill one of the requirements to gain college degree of Economical Faculty in Sebelas Maret University Surakarta.

In finishing this thesis, the writer really gives his regards and thanks for people who has given guidance and help, they are :

1. Dr. Budhi Haryanto, MM who has given his best guidance to write a quality content of the thesis. You are Rock, Sir.

2. Drs Sumono, MSi, you are a great father and inspiration, I just try to be as great as you are.

3. Dra Kustinah, this thesis is the best I can do, I hope it make you proud, mom.

4. My little brother, M. Rahardian Kusmono, you are my barometer for being the best person I could be.

5. My Sister, Wardhani, thank you for your kindness and patient.

6. My best partner, M Adhitya Farkhan Zamzami, you are great, Man !

7. All My best friends, thanks you so much for your huge supporting. You are all the best friends I ever had.

Finally, the writer realizes there are unintended errors in writing this thesis. He really allows all readers to give their suggestion to improve its content in order to be made as one of the good examples for the next thesis.

Surakarta, October 13, 2012 Author

CHAPTER IV FINDINGS AND DISCUSSIONS

4.1. descriptive analysis .............................................................................................

37

4.2. research instrument analysis ............................................... .............................

39

4.3. structural equation modeling analysis ................................. .............................

44

4.4. hypotheses analysis and discussion ..................................... ............................

48

4.5. mediation analysis .................................................................. ..........................

53

CHAPTER V CONCLUSION AND IMPLICATION

5.1 Conclusion .……………………….......……………..…..........................

56

5.2 Implication .…………………………………..……....... ..........................

57

5.3 Limitation ….………………………………………….... .........................

58

References ……..…………...........………………………………...… ..............................

60 Attachments …………………………………………………………… .............................

63

1.1. Theoretical Framework ...................................................................................

24

Attachment Appendix 3 Research Path Diagram before Modified ...........................................

63 Appendix 10 Research Path Diagram after Modified ...........................................

73

CONSUMER ATTITUDES TOWARD HIGH TECHNOLOGY PRODUCT (Study on Smartphone Blackberry)

Dewantika Noor Hidayati Kusmono NIM F1210018

The objective of this research is to examine the relationship between quality, perceive usefulness, easy to usefullness, and prestige as atecendents of consumer attitudes. This research also examine the relationship between consumer attitudes and intention to buy Blackberry.

The survey toward 200 samples were conducted in Sebelas Maret University by using a purposive sampling method. The construct in the model were measured using five point likert scale.

The results are consumer attitudes toward Blackberry is influenced by perceived quality, prestige, usefulness, and ease to use. Specifically, perceived quality and prestige play important role in forming consumer attitudes.

In the relationship between perceived quality, prestige, usefulness, ease to use, and intention to buy, consumer attitudes play a mediation role fully. It means, there is no direct effect of perceived quality, prestige, usefulness, ease to use on intention to buy before going through the mediation variable, consumer attitudes

Keywords : Quality, Consumer Attitudes, Prestige, Usefulness, Ease to use, Intention to buy, Blackberry

CHAPTER I INTRODUCTION

1.1. Background

Consumer attitudes toward Blackberry are interesting to be studied because it can be used to improve the insights about decision variables that influence consumers to buy Blackberry. This research also can be used as reference in discussing the theory on marketing area, especially on consumer behaviour. Unfortunately preview studies indicated some limitation related to the sampling method, so it impacted on the limitation of generalitation (Guilabert, 2005). This situation gives an opportunity in this research in order to design an alternative model which can explain the phenomenon according to the observed setting.

This model consists of six variables. Namely quality, prestige, usefulness, easy to use, consumer attitude, and intention to buy Blackberry. Quality, prestige, usefulness, ease of usefullness are antacedents variables of attitude, it means in order to increase attitude marketer must stimulate the antacedents variables which express on marketing strategy to be done (Bloch et.al, 1993; Ang et.al, 2001; Matos et.al, 2007; Phau and Teah; 2009) . Next in this context attitude toward Blackberry is contructed as mediation variable in the model. It means that attitude mediates between antacedent variables and intention to buy (Ang et.al, 2001; Huang et.al, 2003; Matos et.al, 2007). Latest, intention to buy is a dependent variable which is predicted in this study. It is

variables (Zheitaml et.al, 1996; Matos et.al, 2007). Follow is the explanation of each variable in the model. The first variable is quality. It is important considered by consumer in influencing consumer attitudes toward Blackberry. The preview study indicated that the paradigm of branded products being perceived as a straight forward guarantee of quality and consistency is no longer valid (Zajas and Crowley, 1995; Yelkur, 2000; Temporal and Lee, 2000). So consumers started to perceive the quality and features offered by non-branded products similar to those of branded ones. It means that Blackberry as a branded product having a high quality has an positive influence to customer attitudes toward Blackberry.

The second variable is Prestige. This variable can be influencing consumer attitudes toward Blackberry. The consumers develop prestige meanings for brands based on interactions with people, object properties, and hedonic values. Such interactions occur at personal and societal levels. Thus, a brand's prestige is from a multitude of interactions between the consumer and elements within the environment. Based on the explanation above consumers have a prestige sense when using Blackberry.

The next variable is Usefulness, it is also important variable which can influencing consumer attitudes toward Blackberry. Perceived usefulness is defined as the degree to a person who believes that using a particular system would enhance job performance. So, it can influence customer attitudes toward Smartphone product by its usefulness.

These two instruments contained semantic differential scales of usefulness (relevance, perceived utility, and job effects) and ease of use (flexibility of system, understanding of system, feeling of control, and error recovery). According to Davis (1986) from the previous findings in the literature, he established well-recognized definitions and measures for perceived ease of use and perceived usefulness in the context of using particular systems. Perceived ease of use refers to the degree to which a person believes that using a particular system would be free of effort. So it can be as another variable on which has a positive influence customer attitudes toward Blackberry.

The dependent variable of this research is Intention to buy Blackberry. Based on the the preview study literature, Lavidge and Steiner introduced The Stair-Step model that explained consumer behavior toward intention to purchase. The rationale behind this model is beliefs are formed about a brand or a product, influenced by those beliefs, attitudes toward the brand or the product are consequently formed, and finally, from these attitudes individuals will develop an intention to buy or not buy the particular brand or product (Guilabert, 2005).

The independent variable of this research is consumer attitudes toward Blackberry. This variable is predicted in influencing the intention to buy Blackberry. Build upon Allport’s definition (1935), attitudes are typically defined as learned predispositions to respond to an object or class of objects in a consistently favorable or unfavorable way. In classical attitudinal theory, the importance of studying attitudes rests on the connection between the attitude toward the particular object and the

Rosenberg, Hovland, Abelson, McGuire & Brehm, 1960; Fishbein & Ajzen, 1975; Staw & Ross, 1985; Eagly & Chaiken, 1993). If attitudes and behavior are highly correlated, then the behavior of a person can be predicted once her/his attitude has been established (Ajzen & Fishbein, 1977).

Based on the variable relation, it can be defined the research problems related to the variable proposition on the models. Following are the formulated problem of this research.

1.2. Research Problems

Prior study indicate quality has positive relationship to the consumer attitudes (Tellis and Geath, 1990; Gelb, 2010). It means the higher of the quality equivalent to the higher of consumer attitudes. Hence, the first problem of this research is :

Does quality influence on consumer attitudes toward Blackberry ?

Prestige is also influencing the consumer attitude. Consumers will have a sense of prestige when using Blackberry. So, the second problem of this research is :

Does prestige influence on consumer attitudes toward Blackberry ?

Perceived usefulness is defined as the degree to which a person believes that using a particular system would enhance his or her job performance. People assume that by using Blackberry their job performance incerasing. So it can be influence the consumer attitude toward Blackberry. Thus, the third problem of this reserach is :

Blackberry ?

Perceived ease of use can be influence to the costumer attitude in many aspects, there are : flexibility of system, understanding of system, feeling of control, and error recovery. So, it can be included in the next problem of this research is :

Does perceived ease of use influence on consumer attitudes toward Blackberry?

Based on Allport’s definition (1935), attitudes are typically defined as learned predispositions to respond to an object or class of objects in a consistently favorable or unfavorable way. If attitudes and behavior are highly correlated, then the behavior of a person can be predicted once her attitude has been established (Ajzen & Fishbein, 1977) . Based on those explanation the fifth problem of this research is :

Does Consumer attitude influence on Intention to Buy toward Blackberry?

1.3. Research Purpose

This study aims to design an alternative model that suitable to consumer attitudes toward Blackberry phenomenon because the model in preview study has a limitation related to the sampling method, so it impacted on the limit of generalitation (Margaritha B. Guilabert, 2005).

variables. First, the influence of quality, prestige, usefulness, and ease of usefulness on consumer attitudes. Second, the influence of consumer attitudes on intention to buy. Third, the mediation analysis of consumer attitudes in this reaserch.

1.4. Research Implication

Implication of this study are devided into theoritical implication, practical implication, and continous study implication. · Theoretical Implication This research can be used as reference in discussing the theory on marketing area, especially on consumer attitudes toward Blackberry. Moreover, this study is hoped could enrich theoritical understanding in marketing study.

· Practical Implication This research is expected to give insight about Indonesian consumer attitudes toward Blackberry. Therefore, it can be used in understanding the attitudes and set a strategy to increase sales in Indonesia.

· Future Study Implication This study is expected to give an insight for continous study. Specially, in order to increase the external validity of the theory that is conceptualized. It is important because this study has limited application. Therefore, it needed continous study, esspecially on development the measurement in another setting.

To understanding the research importance and relevance. There are thtree topics on research issue, research object and model generalization principle.

· Research issue The main issue of this research is consumer attitudes toward Blackberry product. The result of this research is expected to give an important insight about the decision variables that influence consumers to buy Blackberry.

· Research object The object of this research is Blackberry. This selection is considerated on the homogeneity of the sample that will be tested, in order to explain the phenomenon precisely.

· Model generalization principle This research is based on the conditional scope setting and it impacts on the limitation in generalization. Hence, to generalize the models to different setting, it needs to understand the external factors that may potentially influence the model. In the end it will affect the appropriate of tailoring strategy.

CHAPTER II THEORITICAL BACKGROUND AND HYPOTHESIS

This chapter describe 3 aspects, there are : (1) study position (2) variable describtion and hypotheses development (3) theoritical model. It is important in giving the theoritical basis that is used to explain the formulated hypothesis that will be tested. Hence, this study can be thrustworthy from theoritical aspect. The explanation of each topic will be explained below.

2.1 Study Position

This study can be explained by a comparison between the variables in previous studies (see Table II.1). In this context, the dependent variable is conceptualized into the construction of some, there is a willingness to purchase the product (Albers - Miller, 1999 ), purchase intention (Ang et.al, 2001; Huang et.al, 2005; Maldonado et.al, 2005, Phau and Yeah, 2009 ) states the option to buy the High Technology product, evaluation of product attributes (Bloch et.al, 1993), and behavioral intentions (Matos et.al, 2007).

Moreover, independent variable is conceptualized into divergences construct,perceive quality(Ang et.al, 2001; Bloch, 1993, Cheung and Prendergast, 2006 ), product type (Albers-Miller, 1999), perceived usefulness (Albers-Miller, 1999; Dowling and Staelin, 1994; Maldonado and Hume, 2005; Matos et.al, 2007 ), ease tpo Moreover, independent variable is conceptualized into divergences construct,perceive quality(Ang et.al, 2001; Bloch, 1993, Cheung and Prendergast, 2006 ), product type (Albers-Miller, 1999), perceived usefulness (Albers-Miller, 1999; Dowling and Staelin, 1994; Maldonado and Hume, 2005; Matos et.al, 2007 ), ease tpo

In this research, SEM is used as statistical analysis. This technique appropriates to explain six variables in this research that are the predecessor of the consumer attitudes as independent variable. Moreover, this research also analyzes the mediation role from consumer attitudes. The step of this analysis will be explained in the next chapter.

Table II.1 Study Position

Author (year)

Independent/ Antecedent Variable

Dependent Variable

Ang Et. Al 2001

Social Influences

- Informative

Suscepbility - Normative

Attitude Towards High Technology product

Purchase Intention

- Prestige

Personality Characteristic

- Value Consciousness - Integrity - Personal

Gratification

Demographics

- Age - Education - Income

Bloch Et Al. 1993

- Demographics - Self-Image - Product Importance - Store Reputation,

Durability And Style/Fashion Ability Of The Product

- Brand Image - Price

Stated Choice To Purchase A Designer Label, A Counterfeit Or

A No Logo, Evaluation Of Product Attributes

Huang Et.Al 2004

- Price - Perceive Quality - Usefullness

Attitude Toward Blackberry

Purchase Intention

Matos Et.Al 2007

- Price Quality

Inference - Risk Averseness - Perceived Risk - Integrity - Personal

Gratification - Subjective Norm

Attitude Toward Counterfeits

Behavioral Intention

Phau And Teah 2009

Social Factor

- Information

Suscepbility - Normative Suscepbility - Collectivism

Personality Factor

- Value Consciousness - Novelty Seeking - Integrity - Personal

Gratification - Status Consumption -

Attitude Toward Counterfeits

Purchase Intention

This Study

- Price Quality

Attitude

Behavioral

- Perceived Risk - Integrity - Personal

Gratification - Subjective Norm - Status Consumption

Counterfeits

Source: procesed result by writer

2.2 Discussion of Observed Variables and Hypothesis Formula

The explanation in this sub chapter is focused on definition and relationship among of variables. It is important to give the same perception of the observed variables.

2.2.1 Consumer Atiitude toward Blackberry

Attitude is an overall persistent evaluation towards people, things, or goods (Engel et al., 2006) ; It is a consistent positive or negative reaction towards certain things through learning (Hawkins et al., 2007; Schiffman and Kanuk, 2006), which includes favorable or unfavorable evaluation, emotional feeling, and behavioral tendency (Kotler and Keller, 2008). Brand attitude is the continuous preference or loathing tendency of the consumer towards a certain brand (Fishbein and Ajzen, 1980) and the overall evaluation the consumer has towards the brand. The evaluation base is the prominent bene fit or image of the brand. The consumer judges whether the

(Wilkie, 1986), which is the comprehensive evaluation result of the consumer attitude towards the brand attribute (MacKenzie and Spreng, 1992). Apositive individual attitude towards a brandmay increase the chance of using the brand (Kotler and Keller, 2008).

Following Allport’s definition (1935), attitudes are typically defined as learned predispositions to respond to an object or class of objects in a consistently favorable or unfavorable way. In classical attitudinal theory, the importance of studying attitudes rests on the connection between the attitude toward the particular object and the consequent behavior toward the object that this attitude will produce (Allport, 1935; Eagly & Chaiken, 1993; Fishbein & Ajzen, 1975; Rosenberg, Hovland, Abelson, McGuire & Brehm, 1960; Staw & Ross, 1985). If attitudes and behavior are highly correlated, then the behavior of a person can be predicted once her attitude has been established (Ajzen & Fishbein, 1977).

Several previous 1 studies have suggested three components of attitudes :

1. Cognitive component – the knowledge or cognition of the product formed after integrating direct experience or information obtained.

1 Consumer attitude is supported by study from (Rosenberg and Hanland, 1960; Lutz et al., 1986;

Guiltinan et al., 1997; Assael, 2004).

a product or brand, representing the direct or overall evaluation of the consumer towards the product.

3. Conation component – the possibility or tendency of an individual act or behave with regard to the product.

Preview studies have treated only cognitive/utilitarian and affective/hedonic components as perceptual attitude factors (Syvia and Chan-Olmsted, 2005; MacKenzie and Spreng, 1992; Muray and Vogel, 1997; Voss et al., 2003) , while few studies have treated product/brand attitude as one dimension, i.e. affective component (Osgood et al., 1957). Because belief, affection, and intentions are components in most accepted hierarchical conceptualizations of the communication process (Engel et al., 2006; McGuire, 1976), this study adopted the theory of the three components of attitude. This research interpreted cognition as brand trust (Delgado-Ballester, 2004), affection as brand affection (Vakratsas and Ambler, 1999; Howard and Gengler, 2001), and conation as purchase intention (Bennett and Rundle-Thiele, 2000). Based on the literature, the antecedents of consumer attitudes toward Blackberry will be explained below.

2.2.1.1 Perceive Quality

The terms perceived quality and satisfaction have been used interchangeably, especially among practitioners. However, Rust and Oliver (1994) proposed that The terms perceived quality and satisfaction have been used interchangeably, especially among practitioners. However, Rust and Oliver (1994) proposed that

Quality is a multidimensional concept that cannot be easily defined or measured, a distinction can be made between objective quality and perceived quality. Objective quality refers to the actual technical excellence of the product that can be verified and measured (Monroe & Krishman, 1985). In contrast, perceived quality is the consumer’s judgment about a product’s overall excellence or superiority (Zeithaml, 1988 ). Perceived product quality is a global assessment ranging from bad to good, characterized by a high abstraction level and refers to a specific consumption setting. Blackberry is a high quality Smartphone that is characterized by a good global assessment. In addition to the Blackberry has many advantages for its users. This phenomenon leads to formulated hypothesis as follow :

H1: Perceive quality has positive influence on consumer attitudes towards

Blackberry

This interpretation recognizes that the definition of prestige may vary for different people, depending on their socioeconomic background. Translated into marketing terms, consumers develop prestige meanings for brands based upon interactions with people (e.g., aspired and/or peer reference group), object properties (e.g., best quality), and hedonic values (e.g., sensory beauty). Such interactions occur at personal and societal levels. Thus, a brand's prestige is created Academy of Marketing Science Review from a multitude of interactions between the consumer and elements within the environment. Prestige-seeking behavior is the results of multiple motivations, but in particular the motives of sociability and self-expression. In sum we define five values of prestige combined with five relevant motivations, as follows.

A review and attempt to reconcile the accounts from the literature of

economics, marketing and psychology, show a general lack of consensus relating to the definition of prestige. Prestige in different areas leads to different definitions, and each discipline may have its specific definition concerning the concept of prestige.

· Economists have used luxury instead of prestige in comparisons between luxuries and · Economists have used luxury instead of prestige in comparisons between luxuries and

· Finally, social psychologists have long been using the concept of prestige to study the

effect of group forces on the formation and change of opinions and attitudes (e.g., Lorge 1936 and Asch 1948) , or to assign prestige scores to social occupations (see, Wegener 1992, for review).

Horiuchi (1984) observed that it made intuitive sense to classify luxury products as high involvement rather than low involvement. However, his work contributed to demonstrate that "the consumer decision-making process in the luxury goods market does not follow the high-involvement decision-making process of consumer behavior, although the high-involvement model is generally assumed to be applicable to both luxury goods and mass-produced high quality goods" (Horiuchi 1984, 165). On the other hand, when a product is very good but has not quite achieved the status of a luxury good, consumers seem to consider it as one of the mass-market, high-quality brands. In such a case, the high-involvement decision-making process does seem to apply (Horiuchi 1984, 171). However, Horiuchi (1984) identified a third model that he called M4-P, which indicated a decision-making process almost irrational, casual, having an impulsive-purchase nature. This latter result supports the argument that luxury products are often bought for non-functional reasons and perhaps only serve the purpose of pleasing oneself and/or impressing others.

different models such as models of conspicuous consumption (e.g., Bearden and Etzel 1982; Mason 1981 and 1992) , models of involvement (e.g., Horiuchi 1984; Rossiter, Percy, and Donovan 1991) , the materialism model (e.g., Belk 1985; Richins 1994a and 1994b) , and research directly related to prestige (e.g., Veblen 1899; Leibenstein 1950; Dubois and Laurent 1994 and 1996; and Pantzalis 1995). This table provides examples of research which were used to identify a set of perceived values of prestige.

Leibenstein (1950 and 1976) used the original typology from Veblen (1899) with the Veblen effect, and included two other derivatives, the snob and bandwagon effects. More recently, Pantzalis (1995) studied the effects of price, limited availability, and social value of prestige brands. His study revealed the dynamics between the three typologies and the relative acceptance of prestige brands in terms of time.

As a general rule, prestige products have been used as an example of extreme- end high-involvement decision making. The assumption is that prestige products are infrequently purchased, require a higher level of interest and knowledge, and strongly relate to the person self-concept. For instance, Rossiter, Percy, and Donovan (1991) stated that the distinction between high and low involvement was dichotomous rather than continuous, and presented a second dimension operationalized as informational- transformational. Their framework reasonably assumes that prestige products are high- involvement products, and that transformational brand choices (i.e., sensory gratification, intellectual stimulation, and particularly social approval) are the primary

differentiate the level of prestige among prestige brands (Horiuchi 1984). In this research three types of brands were categorized as prestigious; upmarket brands, premium brands, and luxury brands, respectively in an increasing order of prestige. Therefore, in this paper, we refer to prestige brands when discussing the brand category whereas we used luxury when relating to the extreme-end of the prestige-brand category. Hence, it was expected that people would have different perceptions of the level of prestige for the same brands, and that the overall prestige level of a brand would consider the prestige perceptions from different people.

Related to explanation above, Prestige is considered as a variable that have positive correlation on consumer Attitude toward Blackberry (Delgado, 2002; Thurau et.al., 2002 ). This condition underlie the following hypothesis :

H2: Prestige has positive influence on consumer attitudes towards Blackberry

2.2.1.3 Usefulness

To discuss how people use high technology and what they intend to use it for (www.wordnet.princeton.edu), it is necessary to re flect on the development of the high- technology industry. During the industrial age, inventions such as the light bulb or the motor car provided products, created to satisfy real needs of real people (Tomkins, 2005). However, as life gets busier and more stressful, people are forced to adapt the

(Kallaman and Grillo, 1996). This adaptation process is based on the evaluation of meaningful attributes that support a consumer’s beliefs, whereas, the consumer’s frame of reference and evaluation criteria shifts due to the constantly changing environment, which again, makes it impossible to de fine a general pattern of buying behaviour (Saunders et al., 2003; Hill, 2003; The Economist, 2005; Jiang, 2004). Solomon et al. (2002) argue that people are poor in their estimation of attribute co-variation, not only that they tend to see what they are looking for and ignore everything that says anything different, but also to the extent that consumers regularly overstate the numbers of attributes they use in a product.

Nevertheless, nowadays consumers expect convenience, quality and service of a product to be available at anytime and at any place (Yelkur, 2000; Winkler, 1999; Silverhart, 2004), and furthermore adopt high-technology in order to continue in a particular social group or to enter one they want to belong to (Kim et al., 2001; Haughey, 2004).

Recalling the development of this particular market segment and its massive impact on consumer’s buying behaviour, it has been said that the satisfaction of needs during the industrial age was adequate to the demand created by the consumer (Tomkins, 2005). Offered bene fits were usually easy to see and clearly understood. While consumers in the past were usually driven by market share when making a buying decision, in present-day markets even brands lose their status of providing a higher level of satisfaction and now face the reality of mass customisation (McFadden Recalling the development of this particular market segment and its massive impact on consumer’s buying behaviour, it has been said that the satisfaction of needs during the industrial age was adequate to the demand created by the consumer (Tomkins, 2005). Offered bene fits were usually easy to see and clearly understood. While consumers in the past were usually driven by market share when making a buying decision, in present-day markets even brands lose their status of providing a higher level of satisfaction and now face the reality of mass customisation (McFadden

a trend set by other people and companies, i.e. the environment, used by consumers as references and for information gathering. Supporting the assumption of people following their desires by adapting to environmental changes, it was mentioned in the literature that consumers nowadays try to attain social belonging through buying particular products (Jiang, 2004; Haughey, 2004). This phenomenon lead to formulated hypothesis as follow :

H3 : Usefulness has positive influence on consumer attitudes towards Blackberry

2.2.1.4 Ease to Use

The importance of the perceived usefulness and perceived ease of use of different types of systems has been well documented and studied. Different items have been used to capture the nature of these constructs or similar ones. For instance, Schultz and Slevin (1975) referred to performance in a similar way as what is today considered

to measure computer user satisfaction closely related to perceived usefulness and perceived ease of use. These two instruments contained semantic differential scales of usefulness (relevance, perceived utility, and job effects) and ease of use (flexibility of system, understanding of system, feeling of control, and error recovery). It was Davis (1986) who, from the previous findings in the literature, established well-recognized definitions and measures for perceived ease of use and perceived usefulness in the context of using particular systems. In Davis’s (1989) words, perceived ease of use refers to “the degree to which a person believes that using a particular system would be free of effort”. Perceived usefulness is defined as “the degree to which a person believes that using a particular system would enhance his or her job performance”. Based on the explanation, eease tp use is considered as a variable that have positive correlation on consumer Attitude toward Blackberry. This condition underlie the following hypothesis :

H4 : Ease to use has positive influence on consumer attitudes towards Blackberry

2.2.2 Intention to Buy Blackberry

One theory that refers to this correlation and has been relevant in the consumer behavior field is the hierarchy of effects model. In 1961, Lavidge and Steiner introduced what they called the stair-step model that explained consumer behavior toward intention to purchase. The rationale behind this model is that first, beliefs are formed One theory that refers to this correlation and has been relevant in the consumer behavior field is the hierarchy of effects model. In 1961, Lavidge and Steiner introduced what they called the stair-step model that explained consumer behavior toward intention to purchase. The rationale behind this model is that first, beliefs are formed

This theory is important because it provides a basis for defining key elements that influence consumer behavior (Assael, 1998). For this research, the key part of this theory lies in the idea that attitudes are formed first and those will influence how consumers act consequently with regard to the particular brand or product.

The Intentions to buy variable is in terms of its direct wording, a measure of intention or likelihood or propensity to buy in the future. The question therefore arises how the Intentions-to-buy ratings do actually tie in with future purchasing or-as a rough equivalent-with future "Use". For example, is a change in Usage preceded by a change in Intentions-to-buy? As already mentioned in Section 3, there is no empirical evidence that changes in the percentage of claimed Users tend to lag behind corresponding changes in the percentage of informants who have expressed an Intention-to-buy. These negative results are, of course, in terms of the overall percentages U and I. Additional, and possibly more sensitive, information on the relation between Intention-to-buy and future Use can be obtained on an individual informant basis, if initial informants are reassessed concerning their (claimed) Usage habit. Hence, the last hypothesis is formulated as follow :

H5 : There is a significant relationship between attitude and intention to buy Blackberry

Based on five formulated hypothesis, the conceptual variables relationship is showed in model below (see figure1.1).

Figure 1.1.

Theoretical Framework

Figure 1.1 explained the relationship of six variables: First, the positive relation between perceive quality and consumer attitude. It is based on H1, which explains the

Easy to Use

Consumer

Attitudes

Intention To Buy

explains the positive relation of prestige on consumer attitude. This relation is signed on H2 which explains that the higher prestige, the higher consumer attitude toward Blackberry. Third, explanation of relation usefulness on consumer attitude. This is based on H3 that supposes the positive correlation between usefulness and consumer attitude, it means the higher usefulness, the higher consumer attitude toward Blackberry. The next explanation of relation ease to use Blackberry on consumer attitude. This is based on H4 that supposes the positive correlation between ease to use and consumer attitude. Finally, the last explanation is the relationship between consumer attitude on intention to buy Blackberry. This proposition is based on H5, which explains the relation between consumer attitude and intention to buy Blackberry.

CHAPTER III RESEARCH METHODOLOGY

This chapter aims to give a valid and reliable basic in processing the data. It is important to be explained, because the data refer to respondent’s perception that is probably impacted on bias information because of their condition when they are surveyed. Therefore, this data must be tested to make an assurance on the validity and n reliability aspect. Hence, the information can be trustworthy on methodological aspects. In supporting this effort there are four topics explained i.e. (1) study scope, (2) sampling and data collection method, (3) operational definition and research instrumental measurement, and (4) analysis method.

3.1 Study Scope

This study is categorized as applied research. It is aimed to give an insights about decision variables that influence consumers to buy Blackberry. Therefore, this study is expected to give an understanding about the consumer attitudes toward Blackberry.

The data in this study is cross sectional. It means that the data is collected through direct interview on one point in time event. Consequently, the constructed model cannot accommodate the change of the phenomenon in the future because of the time progression. Therefore, to generalize this study into different context, it is important to redesign the model into new setting that will be observed.

questionnaire. This method is supposed to influence on the bias perception that is caused by various personal value and understanding. So, it needs both reliability and validity tests to reduce this problem.

3.2 Sampling and data collection method

Population of this study is consumer who has intention to buy Blackberry. The data is collected by using purposive convenience method 1 . This method is used because the chosen sample must understand about the research problems. These requirements are needed in this study to avoid the respond biases that may caused by respondent misunderstanding related to the questionnaire that must be answered. The data are collected through direct meeting that is guided by questionnaire toward 200 respondents. This quota size is considered to represent of Blackberry users. Furthermore, it also fulfilled the minimum criteria of statistical tool that was used in this study.

3.3 Operational definition and research instrumental measurement 3.3.1 Consumer attitude

Attitude is an overall persistent evaluation towards people, things, or goods. It is a consistent positive or negative reaction towards certain things through learning, which includes favorable or unfavorable evaluation, emotional feeling, and behavioral tendency (Kotler and Keller, 2008). The indicators is measured by likert scale that ranged from 1= strongly disagree until 5= strongly agree. The indicators of this variable are :

- Benefit of Blackberry

1 Convenience sampling method is a kind of information collecting method that was collected from

- Like - Enthusiastic

3.3.2 Quality

Perceived quality is a specific concept based on product and service features (Rust and Oliver, 1994) . it can be controlled to a certain degree by a company whilst satisfaction can not. Thus, perceived quality is understood as an antecedent of customer attitude (Llusar, Zornoza & Tena, 2001 ). The indicators is measured by likert scale that ranged from 1= strongly disagree until 5= strongly agree. Following is the indicators of this variable :

- Blackberry has a good design -

Blackberry is a reliable -

Durability of the Blackberry -

Blackberry is not easily damaged

3.3.3 Prestige

The concept of Prestige product is infrequently purchased, require a higher level of interest and knowledge, and strongly relate to the person self-concept. The indicators is measured by likert

scale that ranged from 1= strongly disagree until 5= strongly agree. The indicators of this variable are :

- Blackberry as the exclusive product -

Blackberry is a luxury product - Increasing confidence -

Sense of accomplishment

3.3.4 Usefulness

Usefulness is the expectation of consumer about convenience, quality and service of a product to be available at anytime and at any place (Yelkur, 2000; Silverhart, 2004), and furthermore adopt high-technology in order to continue in a particular social group or to enter one they want to belong to (Kim et al., 2001; Haughey, 2004). This variable consists of three indicators. This indicators is measured by likert scale that ranged from 1= strongly disagree until 5= strongly agree. The indicators of this variable are :

- Useful in work - Convenience in use - Good product performance - Necessary in dealing with others

3.3.5 Easy to use

Ease to use is the degree to which a person believes that using a particular system would be free of effort. This variable consists of three indicators. This indicators is measured by likert scale that ranged from 1= strongly disagree until 5= strongly agree.

- Flexibility of system - Blackberry is simple to use - Easy on error recovery

3.3.6 Intention to buy

Intention to buy is used to a measure of intention or likelihood or propensity to buy in the future. This variable consists of four indicators. This indicators is measured by likert scale

- Probability to buy Blackberry -

Probability to say favorable things about Blackberry -

Preference to buy Blackberry

3.4 Analysis Method 3.4.1 Descriptive Analysis

Descriptive analysis of sample is aimed to make a profile of respondents that is used as background factor in this study. It used to generalize the result on population contact. So, to apply this study into different background factor, it is needed to look on the demographic factor that can influence the model.

3.4.2 Statistical Analysis

Statistical test are first step to make assertion of the data. It is contained of three tests there are; (1) validity test, (2) reliability test, (3) outliers test. The explanations of each paragraph are stated as follow.

a. Validity Test Validity test aimed to know the accuracy and precision of measurement tool in measuring the variable. In this test each item will be tested related to the relationship to the variable. If the items have small loading, it will be eliminated to data result because it cannot represent the construct. In this study, validity test will be processed by AMOS version 18 by using confirmatory factor analysis technique. If the factor loading score is higher than 0.40 it means the item is valid (see Hair et.al., 1998)

b. Reliability Test b. Reliability Test

Therefore, it is expected that reliability procedure could make assurance of data accuracy and feasibility when it is being tested by another statistical analysis. c. Normality Test SEM has conditioning normal data distribution. If data distributed is abnormal, maybe it will influence the data analyze result leaning to high bias data. There are two steps to examining data normality in this research: (1) normality examination for each variable (univariate normality) and (2) normality examination collective variables (multivariate normality). It examined twice because if each variable normally partial distributed, the collective variables must have normally distributed too. In this research, normality examination counted with computerize program, AMOS 18.

The postulate used in this research to examine data normality is critical ratio (cr) value. Data distribution said normal if cr skewness value or curtosis cr value is between - 2,58 to +2,58 (Ghozali, 2008). Besides, Curran et al. In Ghozali and Fuad (2005) divides data distributed into three parts, there are:

i. Normal, if z statistic value (Critical Ratio or C.R.) skewness < 2 and C.R. curtosis value is < 7.

ii. Moderately non-normal, if C.R skewness is between 2 to 3 and C.R curtosis value is between 7 to 21.

iii. Extremely non-normal, if C.R. skewness is >3 and C.R. Curtosis is> 21.

3.4.3 Structural Equation Modeling Analysis

Structural Equation Model Analysis aims to estimate the multiple regression equation separately, but each has ties simultaneously or concurrently. In this analysis it is possible there is more than one dependent variable, and this variable becomes possible independent variables for the other dependent variables.

In principle, the structural model aims to test the causative relationship between variables, so if one of the variables changed will be changes in other variables as well. In this study, data are processed using Analysis of Moment Stucture Software or AMOS version 18. The evaluation of SEM assumption will be explained below.

a. Evaluation of SEM Assumption 1. Sample Adequacy This research will use Maximum Likelihood Estimation (MLE). Hence, 100-200 questionnaires are required to fulfill the criteria (Ghozali, 2008; Wijaya, 2009) 2. Outliers Test