Panel of Examiners Approval Sheet
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PANEL OF EXAMINERS APPROVAL SHEET The Panel of Examiners stated that the skripsi entitled “THE IMPACT OF BRAND IMAGE, PRICE AND PERCEIVED QUALITY ON PURCHASE DECISION (A STUDY CASE OF HEINEKEN BEER IN JAKARTA)” that was submitted by Friska Arini Rumopa majoring in International Business from the Faculty of Business was assessed and approved to have passed the Oral Examinations on April 4th 2016. Miftah Zikri, M.Sc Chair – Panel of Examiners Filda Rahmiati, M.B.A Examiner I Jhanghiz Syahrivar, B.Sc.,M.M. Examiner II i SKRIPSI ADVISER RECOMMENDATION LETTER This skripsi entitled “THE IMPACT OF BRAND IMAGE, PRICE AND PERCEIVED QUALITY ON PURCHASE DECISION (A STUDY CASE OF HEINEKEN BEER IN JAKARTA)” prepared and submitted by Friska Arini Rumopa in partial fulfillment of the requirements for the degree of Bachelor in Faculty of Business has been reviewed and found to have satisfied the requirements for a skripsi fit to be examined. I therefore recommend this skripsi for Oral Defense. Cikarang, Indonesia, January 28th 2016 Acknowledged by, Recommended and Acknowledged by, V, Jajat Kristanto SE.,MM.,MBA. Jhanghiz Syahrivar, B.Sc., M.M. Head of Management Skripsi Adviser ii DECLARATION OF ORIGINALITY I declare that this skripsi entitled “THE IMPACT OF BRAND IMAGE, PRICE AND PERCEIVED QUALITY ON PURCHASE DECISION (A STUDY CASE OF HEINEKEN BEER IN JAKARTA)” is, to be the best of my knowledge and belief, an original piece of work that has not been submitted, either in whole or in part, to another university to obtain a degree. Cikarang, Indonesia, January 28th 2016 Friska Arini Rumopa iii ABSTRACT This research is based on the competitive conditions of beer industries in Indonesia, where Heineken beer’s market share is always going down each year. Variable used in this research are Brand Image (X1), Price (X2) and Perceived Quality (X3) on Purchasing Decision (Y). The data are collected by distributing questionnaire to 137 respondents. The researcher used quantitative analysis includes validity and reliability test, correlation, multicollinearity and binomial logistic regression. The hypothesis testing results that Brand Images is 0.000 below 0.05, shows that Brand Image has partial significant influence towards Purchasing Decision, Price is 0.849 above 0.05, shows that Price has not partial significant influence towards Purchasing Decision and Perceived Quality is 0.013 below 0.05, shows that Perceived Quality has partial significant influence towards Purchasing Decision. This research also shows that there is no multicollinearity between all the independent variables toward the dependent variable. Keywords: brand image, price, perceived quality, purchasing decision iv ACKNOWLEDGEMENT For I know the plans I have for you, declares the Lord, plans to prosper you and not to harm you, plans to give you hope and a future – Jeremiah 29:11. In the name of Jesus Christ, In this final subject of my study at President University. I would like express my deepest gratitude to my Saviour and Almighty God, Jesus Christ who has blessed and led me throughout every single precious moment for three and half years at President University. Throughout this opportunity I would like to show my gratitude for: 1. My deepest gratitude goes to my family, first, Papa Mikael J. Rumopa and Mama Ari Sudaryanti. All greatest gratitude kisses for you who always love me. You always support me in financial, hard time, easy time, and in everything, and always remind me to finish my skripsi soon. My sisters: Fidia Devani Rumopa and Fensha Sastya Ariani Rumopa and my brothers: Farel Fernando Rumopa and Fegar Giovano Rumopa who always motivate to contributed tremendously to finish my skripsi. Thank you for letting me know how wonderful family is and also my lovely grandmother, and my crazy uncle Pipa. I love you all. 2. My skripsi advisor, Mr. Jhanghiz Syahrivar who always guides me and supervised me during my skripsi writing. Thank you for your guidance, constructive criticism and moral support to finish my skripsi. 3. My love goes to RAFY: Kresma Putrangga H, M. Dimas Andromeda and Ki Agus M. Yusuf G., thank you for always being there when I need a support. 4. My sister from another mom and dad, Suzanna Audina, thank you for always being there when I need you and vice versa. 5. Cyber Crime geng: Meilinda C. Pungus, Ayu Teresia, Ivony Lestari and Lois Claudia, thank you for filled my college life with lots of fun, weird, adventure, stupid, laugh, cry, sad, love and together moments. My precious roommate, Ivony Lestari and Lois Claudia thank you for being my roommate who fullest my life with bad, precious, and good moments, v thanks for always listening my story and remind me to finish my skripsi. I hope our friendship will be lasts forever guys! 6. My friend in crime, Alfonsus Jordy Jericho, Kristy Emilia, Juan Jeremy Langoy, Sari Wulan Ningrum, Gandhi Surya thanks for always being there and always reminds me to done this skripsi. 7. My companion Felda Prescilla, thanks for filled my university life with laugh and crazy moments. 8. My lovely group project in the entire semester in President University, Idris Nugraha and Mahrayuni, thank you for always being my partner in every subject through hard and easy conditions; those are moments can not be forgotten. 9. My partner weekend thesis, bang Ican, thanks for letting me to find the numbers of colleration and help me to use SPSS, thank you for helping me in anything. 10. Batch 2012, especially IB 2012 who were given unforgettable moment we share during the college life, for help me during my skripsi process. 11. Warmindo Pak Budi, thanks for always being there when I am hungry in the middle of night. 12. Finally, I would like to thank everyone who has taken part in my life. Thanks for everything and I apologize if I could not mention all names one by one. vi TABLE OF CONTENT PANEL OF EXAMINERS….……………………………………………….…..i SKRIPSI ADVISOR RECOMMENDATION…………………………………ii . DECLARATION OF ORIGINALITY……………………………...………....iii . ABSTRACT………………………………………………………...…………....iv . ACKNOWLEDGEMENT.…………………………………………………..….v TABLE OF CONTENT………………………………………………..……….vii LIST OF TABLES……………………………………………………………....xi LIST OF FIGURES………………………………………………………….....xii CHAPTER I INTRODUCTION .......................................................................... 1 1.1 Background of the Study ......................................................................... 1 1.2 Problem Identification ............................................................................. 6 1.3 Statement of the Problem ........................................................................ 6 1.4 Research Objective .................................................................................. 7 1.5 Significance of Study .............................................................................. 8 1.6 Scope and Limitation ............................................................................... 8 1.7 Defenition of Term .................................................................................. 8 CHAPTER II LITERATURE REVIEW .......................................................... 10 2.1 Theoretical Background ......................................................................... 10 2.1.1 Purchasing Decision .................................................................... 10 2.1.1.1 Purchase Decision Making ............................................. 10 2.1.2 Brand Image ................................................................................. 12 2.1.4 Relationship between Brand Image and Purchasing Decision. ... 13 2.1.5 Price ............................................................................................. 13 2.1.6 Relationship between Price and Purchasing Decision ................. 14 2.1.7 Perceived Quality ......................................................................... 14 2.1.8 Relationship between Perceived Quality and Purchasing Decision .............................................................................................................. 15 2.2 Previous Research ........................................................................................... 16 2.3 Theoretical Framework ................................................................................... 18 vii 2.4 Operational Definition..................................................................................... 19 2.5 Hypothesis ....................................................................................................... 23 CHAPTER III RESEARCH METHODOLOGY ............................................ 24 3.1 Research Methodology .................................................................................... 24 3.1.1 Quantitative Method ............................................................................ 24 3.1.2 Deductive Approach ............................................................................ 24 3.2 Research Design .............................................................................................. 25 3.3 Research Instrument ........................................................................................ 26 3.3.1 Primary Data ....................................................................................... 26 3.3.2 Secondary Data ................................................................................... 26 3.3.3 Data Analysis ...................................................................................... 29 3.4 Sampling Design ..............................................................................................29