Measuring Overall Store Atmosphere Performance Against Customers' Preference To Visit The Store (A case study at XXX Cell).

ABSTRACT

Sejak tahun 2000, pangsa pasar elektronik telah bertumbuh dengan cepat. Tidak hanya TV, DVD player, radio, kulkas, komputer, atau barang lainnya yang kerap menjadi kebutuhan konsumen namun telepon genggam (HP) pun telah menjadi barang yang sangat dibutuhkan oleh konsumen. Karena HP telah menjadi barang umum semenjak tahun 90an, tidak sedikit para pemilik modal yang mulai melirik usaha HP (mereka sering disebut sebagai “pedagang HP”). Di era 1990an sampai tahun 2000an usaha ini telah berjalan mulus, tetapi seiring berjalannya waktu dan semakin banyak pedagang HP, persaingan pun semakin ketat.

Terdapat satu gedung yang dibangun khusus untuk menampung para pedagang HP, yaitu Bandung Electronic Center (BEC). Pengelola BEC telah menyediakan sekitar 300 toko HP yang dibagi dalam 3 lantai, yakni Lantai Utama (LU), Lower Ground (LG) dan Upper Ground (UG). Hal ini membuat para pedagang HP berlomba-lomba untuk mendapatkan keuntungan dengan cara mencari pelanggan sebanyak-banyaknya.

Dalam hal mendapatkan keuntungan, biasanya para pedagang HP menargetkan penjualan HP setiap bulannya. Untuk mencari pelanggan baru, mereka biasanya memperlakukan konsumen sebaik-baiknya. Atribut-atribut toko pun tidak kalah ambil peranan. Poster-poster ditempel di dinding toko, dan umbul-umbul pun menghiasi setiap toko.

Dari hasil kuesioner yang disebarkan secara acak kepada pelanggan yang berkunjung ke lantai LU, dapat disimpulkan bahwa persepsi pelanggan terhadap suasana toko yang baik hanya berfokus pada desain toko saja. Konsumen cenderung memperhatikan general interior dan store layout.

Menurut pendapat saya, atribut-atribut toko memiliki peranan penting dalam mengubah persepsi pelanggan terhadap toko itu sendiri. Saran saya adalah agar setiap toko memasang atribut-atribut tambahan yang dapat menarik konsumen untuk berkunjung.

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TABLE OF CONTENTS

ABSTRACT ………... i DECLARATION OF ORIGINALITY .…………..………. ii PREFACE ………. iii - iv TABLE OF CONTENTS ………. v - vi

CHAPTER I INTRODUCTION

I.1. Background of the Study ……… 1 - 2 I.2. Identification of the Case ………... 2 - 3 I.3. Objectives of the Study ..………. 3 I.4. Limitations of the Study ..…..……… 3 - 4 I.5. Layout of the Paper ………. 4

CHAPTER II THEORETICAL REVIEW

II.1. Store Differentiation ……….. 6 II.2. Selling Concept ……….... 6 - 7 II.3. Service Mix ………... 7 II.4. Strategy Mix ……….. 7 - 8 II.5. Atmosphere (Atmospherics) ……….. 8 - 11

CHAPTER III CASE ANALYSIS

III.1. Methodology Research ... 12 - 13 III.2. Respondents’ Identity ………. 13 - 14 III.3. Customers’ Preference …….………. 14 - 15 III.4. Atmosphere Elements (Customers’ Preference of

Exterior, General Interior, Interior Display,

Store Layout ) ……….. 15 - 20

CHAPTER IV CONCLUSION AND SUGGESTION

IV.1. Conclusion ………...………… 21 - 22 IV.2. Suggestion ……….. 22

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BIBLIOGRAPHY

LIST OF APPENDICES

Questionnaire (In Indonesian) Questionnaire (In English)

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CHAPTER I

INTRODUCTION

I.1 Background of the study

Currently, the communication technology has been growing very fast. It can be said that people always need telecommunication facilities such as mobile phone which has become as one of the basic needs (translated from PULSA tabloid, Mei 2006 edition: page 35). Since 1990, mobile phone business has been developing fast in Indonesia. It only needed several years for people to know and accept mobile phones as one of their telecommunication facilities.

Mr. Hasan Tanadi as the owner of Royall Cell agrees that such phenomenon existed. According to him, since 1993, people have been choosing mobile phones as one of their communication facilities. They have some common reasons for choosing a mobile phone: it does not need a cable, it is also portable and rechargeable. He adds that in the last two years, the number of mobile phone traders in Bandung has been growing rapidly.

In 2004, a group of investors approached Istana Group to respond to the phenomenon by building Bandung Electronic Center (BEC). This building has more than 500 stores, 300 of which engage in mobile phone

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business while others engage in information technology business such as computers, laptops, digital camera, their accessories, and so on.

Based on the observation, the stores engaged in mobile phone business offer similar selling strategy, similar mobile phones, prices, and promotion. The place, especially the store display, is one thing which differentiates one store from another. I will, therefore, analyze some problems in store display or store layout and the atmosphere condition after store redisplay.

I.2 Identification of the Case

XXX Cell is one of the stores in BEC selling cellular phones, their applications, and photo printing service from cellular phone or digital camera. XXX Cell is a small store which started its business in 2004. For more than three years, XXX Cell has grown and survived from its competitors, but XXX Cell still cannot reach its monthly sales target.

According to Mrs. Dewi, the owner and the manager of XXX Cell, she has been trying to reach the sales volume target by giving bonuses and discounts. I have interviewed customers who shopped at XXX Cell. They said that XXX Cell should clean up the facilities at the store such as the display window, the computer sets, and the showcase, and other facilities. They added that by doing so, it create a better atmosphere XXX Cell that the customers might enjoy.

I find that some problems of the physical characteristics at XXX Cell, for example the placement of the banners and posters makes the

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customers not able to take a look at the inside of the store. The above reasons make XXX Cell fail to achieve the sales volume target. That is why I am interested in doing a deeper research on the relationship between store display and sales volume target. Consequently, the identifications of this case are:

1. How is the overall store atmosphere performance of XXX based on the respondents’ opinion?

2. Based on the customers’ preferences, which elements of store atmosphere is the most important for XXX Cell?

3. What is the general idea of the proper message or promotional items which should be displayed based on the visitors’ profile?

I.3 Objectives of the Study

According to Mrs. Dewi, the owner of XXX Cell, it is difficult for XXX Cell to reach the monthly sales volume target. She is also unsatisfied with the store display and atmosphere. She assumed that the store display might be the cause of XXX Cell’s failure to reach the sales volume target.

In this thesis, I will try to find out the problem at XXX Cell. If the store display is not the problem, the owner will not necessarily spend more money for redisplaying in order to create and maintain the store’s image and atmosphere.

I.4. Limitation of the Study

In this research, I will only focus on:

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1. The store atmosphere in the preliminary stage or general.

2. Determining the major elements of store atmosphere based on the theories and according to customers’ preference.

3. Further research is needed in order to gather more detailed result, for example the percentages of atmosphere contribution to sales, promotional items should be displayed based on this case.

I.5. Layout of the Paper

This thesis starts with the Abstract, a concise summary of the entire paper in Indonesia. This Abstract is followed by the Preface, in which acknowledgements are given to those contributing and involved in the work. After that is the Table of Contents and Appendices, followed by its four chapters:

Chapter I : Introduction to the study

Chapter II : Theoretical review of basic theories or concepts related to the case study

Chapter III : Findings and discussion of the study, including ways of collecting data, information or data gathered and discussion of important findings.

Chapter IV : Conclusion, in which major statements are made along with some suggestions or implication for further study is mentioned.

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CHAPTER IV

CONCLUSION AND SUGGESTIONS

IV.1. Conclusion

It is very important for a store to create a good atmosphere. Atmosphere is one main key for a store to create uniqueness. There are four key factors that create atmosphere. They are exterior, general interior, interior display, and store layout.

According to the identifications stated in the Chapter I, I would like to say that XXX Cell’s atmosphere performance ranges between neutral and agree criteria. The atmosphere elements are not significantly different among one another, only the interior display and store layout range in the agree stage.

Atmosphere elements are important to one another, they are interconnected. Traders may not pay attention to store exterior or store atmosphere. However, according to the customers’ opinion, XXX Cell atmosphere elements are important, so, in other words, all atmosphere elements are needed to create a uniqueness to the store itself.

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Based on the Visitors’ Profile table (Chapter 3, page 12), 31 visitors are between 16 – 23 years old. They most likely are students, and their monthly expenses are about Rp. 0 – Rp. 999,999.- From the data, the message which should be displayed is a product whose price is about Rp. 0 – Rp. 999,999.- while the message related or connected with those who between 16 – 23 years old is, for example, buy one mobile phone and get one free ticket watching at cinema.

IV.2. Suggestion

Even though the data shows that XXX Cell’s atmosphere elements do not have much significant difference between one elements and another, still XXX Cell should improve its atmosphere. Based on the data, half of respondents have neutral opinion about XXX Cell’s exterior and general interior, and half other agree that XXX Cell interior display and store layout are good. According to their opinion, XXX Cell should improve its store atmosphere. To improve its atmosphere, XXX Cell can use posters, banners, others store attributes, and clean the computer sets.

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BIBLIOGRAPHY

Arikunto, Suharsimi. Prosedur Penelitian : Suatu Pendekatan Praktek. Jakarta: Rineka Cipta.1996.

Berman, Berry and Joel. R. Evans. Retail Management A Strategic Approach. 9th Edition.

New Jersey: Upper Saddle River, Pearson Education.,Inc. 2004. Gulo, W. Metodologi Penelitian. Jakarta: PT. Grasindo. 2002.

Kotler, Philip. Marketing Management: Analysis, Planning, Implementation, and Control.

New Jersey: Englewood Cliffs, Prentice-Hall., Inc. 1994. n.a. Pikiran Rakyat. 13 July 2006, late ed.:C1+

Pratama, Andi. “Kebutuhan Komunikasi Kita.” PULSA Tabloid. May. 2006, 35.

Sudjana dan Ibrahim. Metode Penelitian Ilmiah. Bandung: Tarsito. 1989. Sukardi. Prosedur Penelitian Pendidikan.

Jakarta: Gramedia Pustaka Utama. 2003.

business while others engage in information technology business such as computers, laptops, digital camera, their accessories, and so on.

Based on the observation, the stores engaged in mobile phone business offer similar selling strategy, similar mobile phones, prices, and promotion. The place, especially the store display, is one thing which differentiates one store from another. I will, therefore, analyze some problems in store display or store layout and the atmosphere condition after store redisplay.

I.2 Identification of the Case

XXX Cell is one of the stores in BEC selling cellular phones, their applications, and photo printing service from cellular phone or digital camera. XXX Cell is a small store which started its business in 2004. For more than three years, XXX Cell has grown and survived from its competitors, but XXX Cell still cannot reach its monthly sales target.

According to Mrs. Dewi, the owner and the manager of XXX Cell, she has been trying to reach the sales volume target by giving bonuses and discounts. I have interviewed customers who shopped at XXX Cell. They said that XXX Cell should clean up the facilities at the store such as the display window, the computer sets, and the showcase, and other facilities. They added that by doing so, it create a better atmosphere XXX Cell that the customers might enjoy.

I find that some problems of the physical characteristics at XXX Cell, for example the placement of the banners and posters makes the

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customers not able to take a look at the inside of the store. The above reasons make XXX Cell fail to achieve the sales volume target. That is why I am interested in doing a deeper research on the relationship between store display and sales volume target. Consequently, the identifications of this case are:

1. How is the overall store atmosphere performance of XXX based on the respondents’ opinion?

2. Based on the customers’ preferences, which elements of store atmosphere is the most important for XXX Cell?

3. What is the general idea of the proper message or promotional items which should be displayed based on the visitors’ profile?

I.3 Objectives of the Study

According to Mrs. Dewi, the owner of XXX Cell, it is difficult for XXX Cell to reach the monthly sales volume target. She is also unsatisfied with the store display and atmosphere. She assumed that the store display might be the cause of XXX Cell’s failure to reach the sales volume target.

In this thesis, I will try to find out the problem at XXX Cell. If the store display is not the problem, the owner will not necessarily spend more money for redisplaying in order to create and maintain the store’s image and atmosphere.

I.4. Limitation of the Study

In this research, I will only focus on:

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1. The store atmosphere in the preliminary stage or general.

2. Determining the major elements of store atmosphere based on the theories and according to customers’ preference.

3. Further research is needed in order to gather more detailed result, for example the percentages of atmosphere contribution to sales, promotional items should be displayed based on this case.

I.5. Layout of the Paper

This thesis starts with the Abstract, a concise summary of the entire paper in Indonesia. This Abstract is followed by the Preface, in which acknowledgements are given to those contributing and involved in the work. After that is the Table of Contents and Appendices, followed by its four chapters:

Chapter I : Introduction to the study

Chapter II : Theoretical review of basic theories or concepts related to the case study

Chapter III : Findings and discussion of the study, including ways of collecting data, information or data gathered and discussion of important findings.

Chapter IV : Conclusion, in which major statements are made along with some suggestions or implication for further study is mentioned.

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CHAPTER IV

CONCLUSION AND SUGGESTIONS

IV.1. Conclusion

It is very important for a store to create a good atmosphere. Atmosphere is one main key for a store to create uniqueness. There are four key factors that create atmosphere. They are exterior, general interior, interior display, and store layout.

According to the identifications stated in the Chapter I, I would like to say that XXX Cell’s atmosphere performance ranges between neutral and agree criteria. The atmosphere elements are not significantly different among one another, only the interior display and store layout range in the agree stage.

Atmosphere elements are important to one another, they are interconnected. Traders may not pay attention to store exterior or store atmosphere. However, according to the customers’ opinion, XXX Cell atmosphere elements are important, so, in other words, all atmosphere elements are needed to create a uniqueness to the store itself.

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Based on the Visitors’ Profile table (Chapter 3, page 12), 31 visitors are between 16 – 23 years old. They most likely are students, and their monthly expenses are about Rp. 0 – Rp. 999,999.- From the data, the message which should be displayed is a product whose price is about Rp. 0 – Rp. 999,999.- while the message related or connected with those who between 16 – 23 years old is, for example, buy one mobile phone and get one free ticket watching at cinema.

IV.2. Suggestion

Even though the data shows that XXX Cell’s atmosphere elements do not have much significant difference between one elements and another, still XXX Cell should improve its atmosphere. Based on the data, half of respondents have neutral opinion about XXX Cell’s exterior and general interior, and half other agree that XXX Cell interior display and store layout are good. According to their opinion, XXX Cell should improve its store atmosphere. To improve its atmosphere, XXX Cell can use posters, banners, others store attributes, and clean the computer sets.

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BIBLIOGRAPHY

Arikunto, Suharsimi. Prosedur Penelitian : Suatu Pendekatan Praktek. Jakarta: Rineka Cipta.1996.

Berman, Berry and Joel. R. Evans. Retail Management A Strategic Approach. 9th Edition.

New Jersey: Upper Saddle River, Pearson Education.,Inc. 2004. Gulo, W. Metodologi Penelitian. Jakarta: PT. Grasindo. 2002.

Kotler, Philip. Marketing Management: Analysis, Planning, Implementation, and Control.

New Jersey: Englewood Cliffs, Prentice-Hall., Inc. 1994. n.a. Pikiran Rakyat. 13 July 2006, late ed.:C1+

Pratama, Andi. “Kebutuhan Komunikasi Kita.” PULSA Tabloid. May. 2006, 35.

Sudjana dan Ibrahim. Metode Penelitian Ilmiah. Bandung: Tarsito. 1989. Sukardi. Prosedur Penelitian Pendidikan.

Jakarta: Gramedia Pustaka Utama. 2003.