Strategy to Increase the Chery Qq Sales

STRATEGY TO INCREASE THE CHERY QQ SALES

Divanti Oenang 011200700006

A thesis presented to the Faculty of Economics President University in partial fulfillment of the requirements for Bachelor Degree in Economics Major in Management

August 2010 PANEL OF EXAMINERS APPROVAL SHEET

The Panel of Examiners declare that the thesis entitled “Strategy To Increase The Chery QQ Sales” that was submitted by Divanti Oenang majoring in International Business from the faculty of Economy was assessed and approved to have passed the Oral Examinations on 20 September 2010

Andreas Yumarma Chairman

Ir. Muhril Ardiansyah, M.Sc., Ph.D. Panel 1

nnnnnn Panel 2

DECLARATION OF ORIGINALITY

I declare that this thesis, entitled “Strategy to Increase the Chery QQ Sales” is, to 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, 31 August 2010

Divanti Oenang

ABSTRACT

The research is conducted to discover the dominant variable of Marketing Mix that makes the sales of Chery QQ decreasing. The research is very important because it will investigate and give clear explanation of what aspects influence the decreasing sales of Chery QQ.

Quantitative research is applied so that it can be analyzed through mathematical expression; and then it can used to identify the study in this research. Questionnaire is used to collect all the necessary data. It is made with five answers. There are 20 questions in the questionnaire. As the respondents are the consumer of Chery QQ. 74 people as the sample they were chosen using purposive convenience sampling method. The population, which is selected consumer, in this study is consumer of Chery QQ in North Jakarta. Total consumer is 242 people.

The result of the research is the product variables as the dominant factor that cause of the decreasing of Chery QQ.

ACKNOWLEDGMENT

Thanks god for the blessing and guidance that you have given to me, to finish my thesis entitled “STRATEGY TO INCREASE CHERY QQ SALES”. This thesis is one of requirements to accomplish Bachelor Degree for Faculty of Economics in President University. In addition, the writing of this thesis has been supported by many people who have directly involved both directly and indirectly help the writer to finish this thesis. I would like to give my special thanks to:

My Beloved Dad, Mom you are the best parents in this world, thanks for everything that you gave to me, especially for your support and advising me in doing this thesis.

My lovely Sisters and brother, thanks for motivation and supporting me in doing this thesis

My thesis adviser Mr. Ir. Muhril Ardiansyah, M.Sc., Ph.D. for the guidance and sugesstion along the time doing this thesis from the beginning till the end.

Mr. Ir. B.M.A.S Anaconda Bangkara, MT, for his knowledgeable information, advices, suggestion, great discussion for my thesis.

My friend, my brother, and my best Tofan Taruna Anindita, for his advices, support, and patient in helping me finish this thesis.

Power Ranger (Cheche, Lady, Nindy, Bagas, Hana), thank you very much for the togetherness in last 3 years. Hope this friendship will last forever.

All my F1 Dormate: Mba Nana, Friza, Ria, Icha, Anggi, thanks for your support.

All student batch 2007: Yopie, Faza, Andi, Vina, Felix, Hakim, Marcel, Haris, and others that I cannot mention it one by one. Thanks for keep supporting each others.

Mr. Musetayin, thanks for your great advice and help, you’re my last savior.

My senior batch 2005, thanks for all your great advice and motivating me to do this thesis

All Lecturer, thank you for your teach and share your knowledge to me.

To all people who can not I mentioned on this paper. Thank you for your support

CHAPTER I

INTRODUCTION

1.1. Background of the study Currently, the entire community has a rival in business. Producers must have a very high creativity in order to survive in a competitive business. As we know that, the economic development in today's business world very quickly. No exception is also effected the growth in transportation vehicles such as motorcycles, cars, trucks, and bus. In this case, the national transportation system has an important role in supporting the national development by facilitating all aspects of people’s activities socially as well as economically. It promotes the population mobility and flow of goods and services from one region to another. Land transportation, as part of national transportation system, has been played the most important role. It can be observed that regions, which have good land transportation facilities generally, have a better economic growth than others. Eventhough the global economics crisis attack almost all the countries in this world, the demand of vehicles still high, especially in Indonesia (Figure 1.1.). The global economics crisis also effect the oil price, in this year the price is reach around $70-80 per barrel (source: mediaindonesia.com). Many automotive manufacture are compete each other to create more affordable vehicles that use less gasoline than other manufactures, this efficient vehicle are expected that can be accepted in the market.

12000000

10000000

8000000

6000000 Units

4000000

2000000

0 2004 2005 2006 2007 2008 Year

Figure 1.1. Statistic Data of Car Sales in Indonesia Source: Badan Pusat Statistik

In Indonesia car market, the strong competitions not only happen in the Multi Purpose Vehicle (MPV) such as Toyota Innova, Isuzu Panther, and Honda CRV. But, it also happens in the city car such as Karimun Estilo, Chery QQ, Hyundai Atoz, and Kia Picanto. To merge in the market competition, every car manufacture must prepare the best for their own product and also how to the market product. Prepare the product can show with defining the marketing concept such as target market, customer needs, intergrated marketing, and profits through the customer satisfaction.

Every car manufacture can maintain their market share not only with launching all new products, but they can do a small change with the facility model and adding some new accessories. Chery QQ first launched on September 2006, it is a city car brand by Chery and it segmented in the low end class. During four years production, Chery QQ already sold 2500 unit. PT. Indomobil Tbk through PT. Unicor Prima

Motor launch Chery try to give an option to the market in city car segment. Actually, In China, Chery was the first Chinese automobile maker to export its products, and as of 2009 it remains the top exporter among Chinese automakers. Chery has received the fourth position for automotive brands with the highest number of car sales. Besides that, Chery also represents the largest vehicle exported in China (source: wikipedia.com)

1.2. History of Chery QQ Chery was founded in 1997 to prop up the economy of Wuhu, a region of China that has received little industrial development. Its first factory used machines and engine technology purchased from Ford Europe for US$25 million. It began auto production in 1999 using a licenced chassis from SEAT's Toledo. The company was an illegitimate company under Chinese law of the time and had to be registered as a "Car Parts Supplier." Thus, the company was not able to obtain a license to sell their cars in all of China. In 2001, Shanghai Automotive Industry Corporation (SAIC) bought a 20% stake in the company, allowing Chery to use SAIC's national retail sales license. In 2001, Chery began exporting its cars to Syria, becoming China's first car exporter. Chery also received its ISO-9001 certification. In September 2002, Chery received its ISO/TS 16949 certification, the highest quality certification at the time (source: chinacarforums.com).The Chery QQ is a city car produced by the Chinese manufacturer Chery Automobile. It is a Completely Knock down (CKD) car, their engine and materials are impoted from China. In Indonesia, Chery is marketed by PT Unicor Prima Motor (UPM). PT Unicor Prima Motor began marketing the Chery vehicles in Indonesia since September 2006. PT UPM is a subsidiary under the banner of Indomobil Group, one of Indonesia's leading automotive industries. The first Chery product that launched in Indonesia is the Chery QQ, which is a city car vehicle. View to improved market opportunities, the event coincided with Indonesia Motor Show in 2007, PT UPM launched Chery Tiggo, SUV 2000 cc. Today, UPM has marketed two models Chery vehicles in Indonesia. Each year, PT UPM will add 3

a new model of Chery vehicles to be marketed in Indonesia. In addition to serving the sales of Chery vehicles, PT UPM also committed to providing appropriate care service, quick, and satisfying for their customers. Currently, Chery already has 23 outlets located on the island of Java, Bali, Sumatra, Kalimantan, and Sulawesi, where 21 outlets of which have been equipped with workshop facilities and spare parts. In China, Chery occupies the fourth position for automobile brands with the highest number of car sales. Chery Automobile Co. Ltd. as a principal Chery is listed as state-owned enterprises in China.

1.2.1. Exterior The shape of the body is very stylish, soft, and cute. The exterior parts consist of Front & Rear Fog Lamps, Rear Window Wiper, Front & Rear Bumper Sporty, Front & Rear Body Kit, Side Visor, and Chrome Tail Pipe. Chery QQ is suitable for daily use because of the body is very small. It has a smooth shape from front to back, and its picture out the sense of movement. The design of the body is similar to Daewoo Matiz and Chevrolet Spark.

1.2.2. Interior The car is known as “The little sprinter”, comes with power windows interior features, automatic close window that activated when the cental door remote is active. The key and remote are complemented by the Anti Theft System. The interior of QQ is so simple. It has a power steering, auto close window, central lock, keyless entry, electric miror, and radio type, fog lamp (front and rear), rear wiper, velg standar, side skirt, rear spoiler, high mount stop lamp, 4 (four) safety belts, and audio with CD/DVD/Radio/MP3 plus LCD Monitor 3 Inch. It is a four-door sedan which is based on a platform self-developed by Chery. The QQ was designed to appeal the younger buyers with is rounded body. The interior was particularly arranged for comfort during a long journey.

1.2.3. Performance

At first, Chery QQ first launch only one model which is QQ 0.8, but today the QQ 0.8 replaced with the new QQ 1.1. The QQ 1.1 has 3 variant, types S, Type G Elegant, and the last is Type G Sporty. All variant is in manual transmision. Chery QQ 1.1 using engine SQR472, 16-valve, four-cylinder in line with electronic multipoint injection system. The QQ have maximum power of 68hp at 6000 rpm, while tourque is 90Nm at 3800rpm. PT Unicor Prima Motor claimed that QQ can reach top speed until 140 km/h.

1.2.4. Safety & Comfort

The comfort consist of Power Steering, Front & Rear Power Windows, Electrically Adjustable Outside Mirrors, Air Conditioning, Intergrated audio with Single CD, DVD, MP3 & Radio, and Automatic Close Windows. While, the safety consist of Child Safety Lock, Front & Rear Seat Belt, Central Door Locking, Intergrated Remote Key with Anti Theft System, and Rear Window Deffoger.

1.3. Problem Identified

Chery QQ 0.8 first launched and promoted on 2006 and chery QQ 1.1 promoted on Indonesia International Motor Show 2008. When first marketed, QQ’s not too booming. It’s only sold 269 units in 2006. But, in 2007 the sales is increasing to 300% that reach 758 units. The sales continue to rise till 851 units on 2008. But, in the year 2009 the sales of QQ is decline to 407 units (Figure 1.2). The decreasing of the demand is affected because of many competitors in the same model of Chery QQ such as Toyota Yaris, Kia Picanto, and Honda Jazz.

900 800 700 600 500

Units 400 300 200 100 0 2006 2007 2008 2009 Year

Figure 1.2. Statistic Data of Chery QQ Source: PT. Indomobil, Tbk

Based on the observations from researchers that analyze this problem, the researchers found a very drastic decline in the year 2009.

1.4. Statement of the Problem

From the description above, there are objectives that the researcher wants to achieve during the research. The objectives of this research can be expressed in answering the following questions:

a. What is the important factor that influence the sales of chery QQ sales b. What is the factor/s that needs to be improved to push the Chery QQ sales?

1.5. Research Objectives

The objectives of this research are to analyze the factors that affected the declining demand of Chery QQ during 2009.

a. To know what the factors that influences the sales of Chery QQ based on Marketing Mix b. To know what is the factors need to be improved to push the sales of Chery QQ.

1.6. Significant of Study

The significant of study are:

1.6.1. Researcher

The researcher will be able to know how important the Marketing Mix in sales of some product. In this case are Chery QQ sales. To make some product we should know how to analyze the marketing mix factors to compete in market.

1.6.2. The company

The company was able to solve their problem which is the sales of chery QQ is decrease in 2009 using the analysis that has been done and published by the researcher. This is hoped to help the company to have a good reputation and they can increase their sales.

1.6.3. Academy

The academy will gain more knowledge and understanding about the problem from this research. The theory studied by students will have different application in the real working world. It would be better for the universities to have different approach on teaching the theory by the combination with case study exercise, this will definitedly helps students being trained to solve problems and not focused on proposed theory without observing the real business condition.

1.7. Scope and Limitation of Study

Chery QQ will be the object of the observation and will be limited specifically in PT. Unicor Prima Motor as the subsidiary under the banner of PT Indomobil Group as a manufacture and distribution companies of Chery QQ in Indonesia. The study will focus on analyzing the factors, process, and issues that related with Chery QQ. Since the Chery QQ first launched on September 2006 until the end of 2009, the sales show increasing demand significantly. In contrary, when entering year 2009, the demand is declining. In this case, the researchers only take the data from 2006 until 2009 for data analysis.

In addition, the study was limited to the information gathered from interview and the researcher observation in PT. Indomobil Tbk from the sales department. Thus, the study would analyze the data available in that department. And also researcher spread the questionnaire to gather the information about the Marketing Mix of the Chery QQ. The questionnaire consists of Marketing Mix which are Product, Place, Price and Promotion.

1.8. Theoretical Framework To fulfill the needs of research, the writer elaborate the theory of research as below:

Customer Satisfaction Customer Behavior

Decreasing Sales

Marketing Mix (4Ps) Demand Theory

Figure 1.3. Theoretical Frameworks

1.9. Assumptions and Hypothesis 1. Null Hypothesis

Ha:

Decreasing of Chery QQ sales is caused by product factor according to Marketing Mix.

Alternate Hypothesis

Ho:

Decreasing of Chery QQ sales was not caused by the product factor according to Marketing Mix.

2. Null Hypothesis

Ha:

Decreasing of Chery QQ sales is caused by price factor according to Marketing Mix.

Alternate Hypothesis

Ho:

Decreasing of Chery QQ sales was not caused by the price factor according to Marketing Mix.

3. Ha:

Decreasing of Chery QQ sales is caused by promotion factor according to Marketing Mix.

Alternate Hypothesis

Ho:

Decreasing of Chery QQ sales was not caused by the promotion factor according to Marketing Mix.

4. Ha:

Decreasing of Chery QQ sales is caused by place factor according to Marketing Mix.

Alternate Hypothesis

Ho:

Decreasing of Chery QQ sales was not caused by the place factor according to Marketing Mix.

1.10. Definition of Terms 1) Motor Vehicles are any kind of vehicles motorized by machine in those vehicles. Usualy used for carrying peoples and goods on roads except those vehicles moved along a railway line.

2) Passenger Cars are motor vehicles which have seats for more than eight passengers, not included the driver. It can be with or without the boot

3) Buses are passengers cars which have seats for more than eight passengers, not included the driver. It can be with or without the boot.

4) Trucks are motor vehicles to carry goods other than passenger cars, buses, and motorcycles.

5) Motorcycles are any kind of two wheeled motor vehicles.

6) Marketing mix (4Ps) is the set of controllable tactical marketing tools- Product, Place, Price, and Promotion- that the firm blends to produce the response it wants in the target market. (Kolter & Aramstrong, 2005)

CHAPTER II

LITERATURE REVIEW

This chapter is about the literature used in this thesis to provide a clear background or theoretical grounding to the research.

2.1. Marketing Kotler and Amstrong (2005) define marketing as the process by which companies create value for customers and build strong customer relationship in order to capture value from customer in return.

In addition, McDaniel, Lamb, and Hair (2006) describe, marketing is an organizational function and a set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders.

The more complete explanation about marketing is defined by John A. Howard of Columbia University in 1973, which is the process of identifying customer needs, conceptualizing those needs in terms of an organization capacity to produce, communicating that conceptualization to the appropriate laws of power in the organization, conceptualizing the consequent output in terms of the customer needs earlier identified, and communicating those conceptualization to customers (Ries and Trout, 2006).

In their study, Kotler and Amstrong (2005) develop the simple five step model of the marketing process. Conversely, McDaniel et all (2006) classify four competing philosophies that strongly influence an organization’s marketing activities.

The figure below shows the simple five steps model of the marketing process developed by Kotler and Amstrong (2005). The marketing process consists of 12

creating value for customer and building relationship with customer, and then capturing values form customers. To create value and build a relationship, company should understand its target market, then designing a strategy and marketing programs that attract customers, so that the relation can be built through delighting customers. When the relationship is established, company can capture values such as profits and loyalty from customers.

This figure show the model of the marketing process

Understand the market place

and customer needs and wants

Design a customer-driven marketing strategy

Create value for customers and build

customer relationships Construct a marketing program that delivers superior value

Build profitable relationships and create customer delight

------

Capture value from customers Capture value from to create profits and customer customers in return quality

Figure 2.1. Simple Model of The Marketing Process Source: Pearson, 2005

The first stage of the marketing process understands the target market’s needs and wants. The core of marketing is human needs, which are the states of felt deprivation. Human needs include basic physical needs for food, clothing, warmth, and safety; social needs for belonging, and affection; and individual needs for knowledge and self-expression.

Different from needs, wants are the form human needs take as they are shaped by culture and individual personality. Wants are shaped by one’s society and are described in terms of objects that will satisfy needs. Human wants that are backed by buying power is called demand. People who have wants and resources will demand products with benefits that add up to the most value and satisfaction.

Consumer needs and wants are fulfilled through a marketing offer, which is some combination of products, services, information, or experiences offered to a market to satisfy a need or want.

Marketing management is used to design a customer-driven marketing strategy. The definition of marketing management by Kotler and Amstrong (2005) is the art and science of choosing target markets and building profitable relationships with them by creating, delivering, and communicating superior customer value. Marketing management is devived into five alternative concepts, which are:

• The production concept This idea holds that consumers will favor products that are available and highly affordable.

• The product concept The idea is that consumers will favor product that offers the most in quality, performance, and features and that the organization should therefore devote its energy to make continuous product improvements.

• The selling concept This concept holds that consumers will not buy enough of the firm’s products unless it undertakes a large-scale selling and promotion effort.

• The marketing concept It is the marketing management philosophy that holds that achieving organizational goals depends on knowing the needs and wants of target markets and delivering that desired satisfactions better than competitors do.

• The societal marketing concept This is a principle of enlightened marketing that holds that a company should make good marketing decisions by considering consumer’s wants, the company’s requiremments, consumer long-run interest, and society’s long run interests.

The marketing program builds customer relationships by transforming the marketing strategy into action. The program consists of the firm’s marketing mix, the set of marketing tools the firm uses to implement its marketing strategy. Marketing mix tools are classified into four groups, called four Ps: product, price, place, and promotion. In delivering value, the firm must create a need-satisfying marketing offer (product). Then, the firm decides how much it will charge for the offer (price) and how it will make the offer available to target consumers (place). Last, the firm must communicate with target customers about the offer and persuade them of its merits (promotion).

2.2. Marketing Mix 4Ps Marketing mix is the sets of marketing tools that work together to achieve company objectives. It is also known as 4 P’s. Cullition (1948) stated that a marketing decision should be a result of something similar to a recipe. In addition, Borden (1953) stated in his American Marketing Association presidential address, took the recipe idea one

step further and coined the term “marketing mix”. A prominent marketer, McCarthy, proposed a 4 P classification in 1960, which has seen wide use. The marketing mix is a bundle of variables including the product or service itself (its advantages); its availability (the place where and when it is available, delivered or distributed); its image (the way it is promoted) and, of course, the price which should be charged.

There are literally dozen of marketing – mix tools. McCharty (1996) stated that a popularized a four – factor classification pof these tools called four Ps: Product, Price, Place (i.e., distribution), and Promotion.

2.2.1. Product Product plays the most significant role in marketing mix. Pricing, promotion, and place are also important. However, if the products and services company offer are not potential customer’s desire and are willing to buy, it will not matter how low the price is, how attractive the advertising is, or whether it has good and convenient location.

Kotler and Armstrong (2004) define a product as anything that can be offered to a market for consumption that might satisfy a want or need. They further define a consumer product bought by final consumer for personal consumption. According to Ferrell (2005), the product is the core of the marketing mix strategy in which retailers can offer consumers symbolic and experiental attributes to differentiate products from competitors. In addition, Borden (1984) define product is about quality, design, features, brand name, and sizes.

Products that are marketed include physical goods, services, persons, places, organizations, and ideas.

According to Tan, et.al (1999), in planning its market offering, the marketer needs to think through five product levels (see Figure 2.2.).

3 2 1

Figure 2.2. Five Product Level Source: Kotler, Ang, Leong &Tan (1999)

1. The most fundamental level is the core benefit, namely the fundamental service or benefit that the consumer is really buying.

2. At the second level, the marketer has to turn the core benefit into a basic product, namely a basic version of the product.

3. At the third level, the marketer prepare an expected product, a set of attributes and conditions that buyers normally expect and agree to when they purchase this product..

4. At the fourth level, the marketer prepares an augmented product that meets the consumer’s desires beyond expectations.

5. At the fifth stands the potential product, encompassing all the augmentations and transformations that this product might ultimately undergo in the future. While the augmented product describes what is included in the product today, the potential product points to its consumers and distinguish their offer.

Many attributes of a company’s products, including quality, brand name, packaging, branding can affect consumer preferences. According to Gasperz (1997), performances, features, reliability, conformance to specification, durability, serviceability, aesthetic, and perceived quality are the product’s attribute that expected by the consumers. Therefore, the product’s management plays an important role to be success.

2.2.2. Price According to Tan, et.al (1999), the firm must decide where to position its product on quality and price. A company can position its product at one of seven levels:

1. Ultimate; there is an ultimate brand (the gold standard)

2. Luxury; just below the ultimate

3. Special Needs; brands that meet a special need

4. Middle; usually there are a large number of brands in the middle level

5. Ease / Convenience; brands that provide mainly the functional benefit sought

6. Me Too, But Cheaper; cheaper brands that nevertheless perform satisfactorily

7. Price Alone; brands whose only appeal is price.

Table 2.1.shows nine possible price-quality strategies. The diagonal strategies 1, 5, and 9 involve one firm offering a high-quality product at a high price, another firm offering an average-quality product at an average price, and still another firm offering a low-quality product at a low price. All three

competitors can coexist as long as the market consists of three groups of buyers – those who insist on quality, those who insist on price, and those who balance the two considerations.

Table 2.1. Nine Price / Quality Strategy

Price

High Medium Low

High 1. Premium 2. High-value 3. Super-value Strategy Strategy Strategy

4. Overcharging 5. Medium- value 6. Good-value Medium Strategy Strategy Strategy Product Quality Product 7. Rip-off 8. False economy 9. Economy Low Strategy Strategy Strategy

Source: Kotler (1999)

Positioning strategies 2, 3, and 6 represent ways to attack the diagonal positions. Strategy 2 says, “Our product has the same high quality as product 1 but we charge less.” Strategy 3 says the same thing and offers an even greater saving. If quality-sensitive consumers believe these competitors, they will sensibly buy from them and save money (unless firm 1’s product has acquired snob appeal).

Positioning strategies 4, 7, and 8 amount to overpricing the product relative to its quality. The consumers will feel “taken” and will probably complain or

spread bad word-of-mouth about the company. These strategies should be avoided by professional marketers.

Furthermore, the company first decides what it wants to accomplish with a particular product. If the company has selected its target market and market positioning carefully, then its marketing–mix strategy, including pricing, will be fairly straightforward. The clearer a company’s objectives, the easier is it to set proc. It can pursue any of six major objectives through its pricing: a. Survival; Companies pursue survival as their major objective if plagued with overcapacity, intense competition, or changing consumer wants. To keep the plant operating and the inventories turning over, they will often cut prices. Profit is less important than survival. b. Maximum Current Profit; many companies try to set the price that will maximize current profit. c. Maximum Current Revenue; Some companies will set a price to maximize sales revenue. d. Maximum Sales Growth; Companies wanting to maximize unit sales believe that a higher sales volume will lead to lower unit costs and higher long-run profit. e. Maximum Market Skimming; Many companies favor setting high prices to “skim” the market. f. Product Quality Leadership; A company might aim to be the product- quality leader in the market and charge premium prices. g. Other Pricing Objectives; Nonprofit and public organizations may adopt other pricing objectives. 20

Price is a central to marketing where it is one of the four variables in the marketing mix that business people use to develop a marketing plan. A number of studies have found that consumers rely on price as an indicator of product quality. More expensive the product is, better the quality it is. A later study found out that consumers use price to evaluate the prestige of the product. Nowdays, many consumers buy products more on the basis of price that other attributes (Peter and Donnely, 2007).

2.2.3. Place Kotler and Armstrong (2005), define place or distribution as a set of interdependent organizations involved in the process of making product available for use or consumption by consumers. It is very important to select locations that are accessible to the target market because the availability will affect the sales.

Marketing-channel decisions are among the most critical decisions facing management. The company’s chosen channels intimately affect all the other marketing decisions. The company’s pricing depends on whether it uses mass merchandisers or high-quality boutiques. He firm’s sales force and advertising decisions depend o how much training and motivation the dealers need. In addition, the company’s channel decisions involve relatively long-term commitments to other firms. Corey (1991) observed:

“A distribution system … is a key external resource. Normally it takes years to build, and it is not easily changed. It ranks in importance with key internal resources such as manufacturing, research, engineering, and field sales personnel and facilities. It represents a significant a significant corporate commitment to large numbers of independent companies whose business is distribution – and to the particular markets they serve. It represents, as well, a commitment to a set of policies and practices that constitute the basic fabric in which is woven an extensive set of long-term relationship.”

Most producers work with marketing intermediaries to bring their products to the market. The marketing intermediaries make up a marketing channel (also called trade 21

channel or distribution channel). We will use Stern and El-Ansary’s (1996) definition of marketing channels:

“Marketing channels are sets of interdependent organizations involved in the process of making a product or services available for use or consumption.”

The use of intermediaries largely boils down to their superior efficiency in making goods widely spread and accessible to target markets. Marketing intermediaries, through their contacts, experience, specialization, and scale of operation, offer the firm more than it can usually achieve on its own. According to Stern and El-Ansary’s (1996) definition of marketing channels:

“Intermediaries smooth the flow of goods and services … This procedure is necessary in order to bridge the discrepancy between the assortments of goods and service generated by the producer and the assortment demanded by the consumer. The discrepancy results from the fact that manufacturers typically produce a large quantity of a limited variety goods, whereas consumers usually desire only a limited quantity of a wide variety goods.”

Furthermore, companies must decide on how many intermediaries to use at each channel level. According to Stroh (1978), three strategies are available:

• Exclusive Distribution; involves severely limiting the number of intermediaries handling the company’s goods or services.

• Selective Distribution; involves the use of more than a few but less than all of the intermediaries who are willing to carry a particular product.

• Intensive Distribution; is characterized by placing the goods or services in as many outlets as possible. When the consumer requires a great deal of location convenience, it is important to offer greater intensity of distribution. This strategy is generally used for convenience items such as instant noodles.

2.2.4. Promotion According to Cravens and Piercy (2006), the marketing communication mix (also called the promotion mix) consists of five major tools:

1. Advertising: Any paid form of non personal presentation and promotion of ideas, goods, or services by n identified sponsor.

2. Sales Promotion: Short-term incentives to encourage trial or purchase of a product or service.

3. Public Relation and Publicity: Programs designed to promote and/or protect a company’s image or its individual products.

4. Personal selling: Face-to-face interaction with one or more prospective purchasers for the purpose of making presentation, answering questions, and procuring orders.

5. Direct marketing: Use a mil, telephone, fax, e-mail, and other nonpersonal contact tools to communicate with or solicit a direct response from specific consumers and prospects.

The figure below is about the Marketing Mix that the researcher use to construct the questionnaire

Product Promotion

- Variety - Advertising - Quality - Personal Selling - Design - Sales - Feature - Promotion - Brand Name

Marketing Mix

Place Price

- List Price - Channels - Coverage - Discounts - Locations - Payment Period - Credit terms Figure 2.3. The Marketing Mix Source : Kotler

2.3. Customer Satisfaction According to Moven (2000), Customer satisfaction is defined as the overall attitude regarding a good or service after its acquisition and use. Another argument from Jerry and Peter (2005), customer satisfaction is defined as the degree to which a products performance exceeds the consumer expectations.

From those definitions, it can be concluded that customer satisfaction is the attitude of the customer regarding to which perceived product or service meets or greater the customer’s expectations, which might leads to brand loyalty as well as profitability.

Based on Hawkins and Looney (1997), there are attributes that create customer satisfaction has known as “The Big Eight” are as following:

1. Value to Price Relationship Determine the value of the difference between what the customer get and what he/she pays to receive it. That means a relationship between price and product value is decided by the difference between value that customer get toward the product that they have purchased.

2. Product Quality The sum of all the quality components thet create the product and that contribute to the value it adds. Means, the quality from the whole components that form a product, and it makes the product has an added value.

3. Product Feature They are physical components that yield the benefit. It can be defined as the physical components of the product that differentiate from one product to others or give more advantage than other products that are similar.

4. Reliability How well a product/service works based on to its promise. It is a combination of product quality and the utility, whether its meet the expectation or doesn’t meet the expectation.

5. Warranty It is an offer that able to refund the purchase price or replace a defective product when the product fails after purchased by the customer.

6. Response to and Remedy of Problems An employee’s attitude in reacting to helps to solve the problems. Means that, employee’s attitude on responds customer complaints or helps customer to solve problem that appears.

7. Sales Experience

It is about interpersonal relationship between employees with customer in communication that related in purchasing the item, whether the customer feels happy or comfortable when communicated with the employee that might lead to satisfaction.

8. Convenience of Acquisition Can be defined as easiness the product can be obtained or the convenience that given by the company to the customer toward product accessiblity.

Parasuraman, et.al (1990) had discovered 10 general dimensions that used to measure customer satisfaction, they are:

1. Tangible The physical facilities, appearance of personnel, tools or equipment used to provide service and physical representation of the service.

2. The reliability It involves consistency of performance and dependability of the products or services, examples: the firm performs the service right the first time, accuracy in billing, etc.

3. The Responsiveness Concern the willingness or readiness of employees to provide service. It involves timeless of service, example: mailing a transaction ship immediately, calling the customer back quickly, etc.

4. The competence Depends on the skills and knowledge of the employees when perform the service, example: knowledge and skill of the personnel, etc.

5. The courtesy

Courtesy is related to the politeness, respect, consideration and friendliness of the employee and the cleanliness, meet appearance of public contact personnel.

6. The credibility Is the result of the trustworthiness, believability, honesty, and having customer best interest at heart on the products or services.

7. The security Is viewed as the freedom from danger, risk, or doubt, for example: physically saftey while using service, financial safety and confidentiality.

8. The Needs Understanding and knowing the customer are important in term of customer perceptions and satisfaction. This means the effort of the company to understand customer’s needs.

9. The access Consist of the approachability and ease of contact, for example: the service is easily accessible by telephone, the waiting time to receive service is not extensive.

10. The communication It is means keep customer informed in language they can understand and listening to them, whether complains or suggestions.

But later investigation showed that, in fact, some the 10 of dimensions were correlated, according to Parasuraman, et.al (1990), customer satisfaction can be evaluated based on five specific dimensions:

1. Tangibles Tangible is defined as the appearance of physical facilities, equiptment, personnel, and written communication material. All of these provide physical representation or image of the service to the customers; most of new customers will use it to evaluate quality.

2. Reliability Reliability is defined as the ability to perform the promised service dependably and accurately. In general, reliability means that the company delivers its promise, for example: about delivery, service provision, problem resolution and pricing.

3. Responsiveness Responsiveness is defined as the willingness to help customers and to provide prompt service. This means the employees or company give attention and promptness in dealing with customers request, question, complaints and problems.

4. Empathy Empathy is defined as the provision of caring, individualized attention to customers and customer understanding. The essence of empathy is conveying, through personalized or customized services, that customers are unique and special.

5. Assurance Assurance is defined as the knowledge, competence, and courtesy of employees and their ability to convey and inspire trust, credibility, security and confidence to customers.

Customer satisfaction refers to extent to which customers are happy with the products and services provided by a business, it is an ambiguous and abstract concept

and the actual manifestation of the state of satisfaction will vary from person to person and product or service to product or service. The state of satisfaction depends on a number of both psychological and physical variables which correlate with satisfaction can also vary depending on other options the customer may have and other products against which customer can compare the organizations’s products according to Saparudin, (2008).

Rust (1994) stated that satisfaction is a consumer’s post purchase evaluation of the overall service experience (process and outcome). It is an affective (emotion) state or feeling reaction in which the consumer’s needs, desires, and expectations during the course of the service experience have been met or exceeded.

A lot of scholar have described customer satisfaction; overall of the description can be explained on three main components: (1) Customer satisfaction is a response (emotional or cognitive) (2) the response related to a certain focus (expectation, product, consumer experience, etc) and (3) Response happened on a certain time (after consumption, after product choosing, based on accumulative experience, etc) (Saparudin, 2008).

According to Paul (2005) Customer satisfaction is a critical concept in marketing thought and consumer research. It is generally argued that if consumers are satisfied with a product, service, or band, they will be more likely to continue to purchase it and tell others about their products or bands and complain to manufactureres, retails, and other consumer. Kotler (2000) stated that “Satisfaction is a person’s feeling of pleasure or disapointment resulting from comparing a product’s perceived performance (or outcome) in relation to his or her expectation”.

Customer satisfaction is a collective outcome of perception, evaluation and psychological reaction to the consumption experience with a product/service. By Yi (1990) 29

Satisfaction is a function of customer’s belief that he or she was treated fairly. By Hunt 1991

“Customer satisfaction is considered a prerequisite for customer retention and loyalty and obviously helps in realizing economic goals like profitability, market share, return on investment, etc.” (Sureshchander, 2002).

2.4. Consumer Behavior Consumer behavior is the study of individuals, groups, or organizations and the processes they use to select, secure, use, and dispose of products, services, experiences, or ideas to satisfy needs and the impacts that these processes have on the consumer and society. All marketing decisions and regulations are based on assumptions about consumer and the marketing practice designed to influence consumer behavior influences the firm, the individual, and society (Hawkins, Best and Coney, 2004)

Marketers have always been interested in how consumers spend their money. How they spend defines who they are. Consumer’s product and service preferences are constatntly changing. In order to address this constant state of flux and to create a proper marketing mix for a wel-defied market, marketing managers must have a through knowledge of consumer behavior. Consumer behavior describes how the consumer makes purchase decisions and uses and disposes of the purchased goods and services.the study of consumer behavior also include the analysis of the factors that influence purchase decisions and product use. (Hawkins, best and coney, 2004)

Customers have several activities before they decide to purchase. Usually, customers find the products based on their needs, and then they evaluate the products. The activities done by customers before and after they purchase is called consumer behavior. There are several quotations of the definition of consumer behavior:

Solomon (2007) defines consumer behavior as the study of the processes involved when individuals or groups select, purchase, use, or dispose of products, services, ideas, or experiences to satisfy needs and desires.

In addition, Berman and Evans (2004) in their book entitled Retail Management explain Consumer Behavior as the process by which people determine whether, what, when, how, from, whom, and how often to purchase goods and services.

The definition of consumer behavior based on Peter and Olson (2005) is the thoughts and feelings people experience and the actions they perform in consumption process including all the things in the environment that influence these thoughts, feeling, and actions.

McDaniel et all (2006) describe how consumers make purchase decisions and how they use and dispose of the purchased goods or services as the definition of consumer behavior.

Before purchasing a product, consumers usually through a process of recognizing that they need a particular product, and then they obtain information about which product suits their needs, after that they will find several kinds of products to be evaluated before they decide to buy a product. In the end, it will result whether the product is satisfactory or not.

2.5. Demand Demand represents the consumer or buyer side of the market. According to Clayton (2008), demand itself is s microeconomic concept which contains theory that deals with behavior and decision making by individual units, such as people and firms. It is defined as the desire, ability, and willingness to buy a product (Clayton, 2008). Only those who have demand can compete with others who have similar demands (Clayton, 2008).

The concept of demand is quiet simple since it involves only two variables which are the price and quantity of a certain product at a given point in time. It is not that other things like preferences, population can be excluded from factors affecting demand, but basically demand is described and measured using prices and quantity. The quantity demanded of a good or service is the amount that consumers plan to buy during a given time period at a particular price (Parkin et al, 2005). Prices influence consumer behavior so that quantities of an item demanded will be different at different prices.

The demand curve is graphically illustrated as a downward sloping line showing different quantity demanded at different prices. The curve is downward sloping because people are in general willing to purchase more of something when its price decreases and purchase less when the price increases. The market demand curve is not exactly the same as individual demand curve as one’s sensivity towards price changes can be slightly different from the others. However, both curves are similar.

2.5.1. The law of Demand According to Clayton (2008), the law of demand has a concept that the quantity demanded varies inversely with its price. The law of demand states that when the price of good rises and everything else remains the same, the quantity of the good demanded will fall (Hall and Lieberman, 2003). Likewise, when the price goes down, quantity demanded goes up (Clayton, 2008).

Baumol and Blinder (2003) mentioned that economics laws are not always obeyed, and the law of demand is not without exceptions. It is called as a law in social science because it usually holds and it has been proven by study and through observation that people will buy more when prices are low and less when prices are high. Like in the market when people notice that there is a sale or that prices are higher than usual, their reactions will be different and that can be measured by the inverse changes in quantity they purchase at different prices. 32

The other theory that can help explain the law of demand could be the throty of ‘marginal utility’ – the extra satisfaction someone will gets from possessing or consuming one more unit of an item. The more of a good a customer has, the less marginal utility an additional unit contributes to overall satisfaction, if all other things remain unchanged (Baumol and Blinder, 2003). In other words, people have diminishing satisfaction every time they purchase more amount of product. Because of the diminishing satisfaction, people are not willing to pay as much for the second, third, fourth,

CHAPTER III

METHODOLOGY

3.1. Research Methodology

In this research, the researcher prefers to use quantitative method than qualitative. People will easily to receive what we aim when we give argumentation based on the valid numerical data rather than use observation or interview result. Based on Cooper and Schindler (2006) defined quantitative research attempts precise measurement of something. Such methodology answer questions related to how much, how often, and how many and who. In quantitative research, Schiffman and Kanuk (2004) state that the researcher analyses the data by using objective, standardized, statistical method consisting mainly of comparisons of averages among the predefined variables and significance test that estimate the extent two which the result represent the universe.

Beside that quantitative method has strengths that have beneficiaries for the research. Matveev in his article mentioned that:

The strengths of the quantitative method include:

1. Clearly and precisely specifying both independent and the dependent variables under investigation; 2. Stating the research problem in very specific and set term (Nachiamas & Nachiamas, 2000) 3. Following firmly the original set of research goals, arriving at more objective conclusions, testing hypothesis, determining the issues of casualty; 4. Eliminating or minimizing subjectivity of judgment (Kealey & Portheroe, 1996).

5. Achieving high levels of reliability of gathered data due to controlled observation, laboratory experiments, mass survey, or other form of research manipulation (Balsey,1970); 6. Allowing for longitudinal measures of subsequent performance of research subject.” (Matveev, 2008,)

From citation above the quantitative method is better than qualitative for this topic. The topic is casualty issue, two variable dependent and independent and high level of reliability for self construct questionnaire. We can also eliminate subjective opinion of the researcher. The researcher prefers to use quantitative method for the research rather than qualitative method.

3.2. Research Model

This model constructed by the researcher to figured out the variable that are used in the multiple regression method.

X1 Product

X2 Y Price Overall Customer X 3 Satisfaction Place

X4 Promotion

Figure 3.1. The Research Model Source: constructed by researcher

3.3. Research Framework

The figure 3.2. below explain about how the researcher do the research from collecting the data until obtain the result.

Collected the Chery QQ sales from PT. Indomobil

Statement of Problems

Literature Study

Research Variable

Questionnaire

Pretest Invalid

Valid Eliminate

Not Reliable Reliability Test

Reliable

Data Collection

Multiple Regressions

Make conclusion of the research

Figure 3.2. The Research Framework Source: constructed by researcher

3.4. Research Instrument

This research uses self constructed questionnaire instrument to collect data. Before decided to make self constructed questionnaire the researcher have search questionnaire from other research but the questionnaire that researcher has got did not match with the theory that researcher used. So the researcher has decided to construct the questionnaire based on the related theory that is used in the research and will do reliability and validity test. The reason behind self construct questionnaire, as mention by Sumarni and Wahyuni (2006) were as follow:

1. Faster and cheaper to gather data. 2. The research was conducted in the operational activity of the company. 3. It invited big scope of respondent. 4. The researcher could explain more detail each question to prevent misunderstanding. 5. To reduce sampling error as a result of unreturned questionnaire.

To complete this study, the researcher developed and constructed the sets of instrument in form of survey questionnaire as follows:

Questionnaire is constructed to evaluate the elements of marketing mix of Chery QQ perceived by consumers which is consisted of several variables such as: a. Product; that covers variables such as: the quality of Chery QQ car, the varieties of product of Chery QQ, the interior and exterior design of the product, and the brand awareness. b. Place; that covers variables such as the show room, location, and coverage. c. Price; that evaluates pricing strategy, price of Chery QQ, Price of Chery QQ stable, Price is good value for its product.

d. Promotion; that evaluates Chery QQ has joined the big automotive event in Indonesia. Chery QQ advertising is attractive or not, and distributor active recommend the product or not.

3.5. Testing Instrument

If we built the questionnaire, we should test it to make sure that questionnaire is proper to measure the research itself. The tests needed to be conducted are validity test and reliability. a. Validity testing

Validity is the extent to which a test measures what we actually wish to measure (Cooper and Schindler, 2006). There are two main things which need to get the validity testing. Content and Construct Validity. Content Validity was done earlier before the questionnaires were distributed to the respondents. This was done through the judgments of a panel of persons on how well the instrument meets the standards. For this research purposes, the questionnaire has been reviewed by thesis mentor and view lecturers.

In testing the construct validity, the writer used Pearson’s correlation coefficient. This formula is also used to test items validity. This coefficient of correlation can be computed from a computational formula based on the actual values of X and Y. The formula is:

( ) ( ) ( ) = { 2 ( )2}{ 2 ( )2} 푁 ∑ 푋푌 − ∑ 푋 ∑ 푌 푟 � 푁Equation∑ 푋 3.1.− Pearson∑ 푋 Correlation푁 ∑ Coefficient푌 − ∑ 푌 Source : Cooper and Schindler, 2006

Where: r = numeral of correlation N = quantity of respondent

X = question score from respondent Y = total score of respondent

The correlation techniques to determine item validity was used because it is the most popular technique used up until now (Masrun, 1979 cited in Sugiyono, 2006).

To determine the validity of both constructs and items, the researcher compares the r computation with the r table. If the r computation is greater than r table means than the constructs and items in the questionnaire are valid. In the execution, the writer would use a significant level of 0.05 since it is commonly used. The score standard for validity is from -1 to 1, 1 is the best score. From the calculation results, this study is 50% valid (See in APPENDIX), from 10 questions only valid 5 question per variable and has been distributed to 74 respondents. b. Reliability

Reliability is not as valuable as validity, but it is much easier to access. It is concerned with estimates of the degree to which a measurement is free of unstable error (Cooper, Donald and Schindler, Pamela S, p.352). For this study, the researcher using Cronbach Alpha formula to determine the reliability.

The Cronbach Alpha formula was used to measure this reliability testing:

1 + S2 α = 2 1 2Sx 2 푆 � − 2 �

Where:

2 2 S1 and S2 = Variance score of first and second half

2 Sx = Test score variance

Equation 3.2. Cronbach Alpha Formula Source: Azwar, 1997, P.76

3.6. Data Processing

Data processing is the main tool for analyze and calculating process on chapter IV. In this research, the researcher analyse and process the data using computer statistical tool, which is SPSS 16 with using analysis on multiple regression and ANOVA. The analysis and calculation process will be shown in next chapter.

3.6.1. Statistics

In analyzing the data, this research utilized two (2) statistical tools. First, is SPSS. Second, is Microsoft Excel.

3.6.2. SPSS

Briefly, this computer software would be used to input the respondents’ answers, test the instrument validity and reliability, and present respondents’ answers.

3.6.3. Microsoft Excel a. Likert Scale The Likert Scale is developed by Rensis Likert. It is the most frequently used variation of the summated rating scale. Summated rating scales consist of statements that express either a favorable or an unfavorable attitude toward the object of

interest. The participant is asked to agree or disagree with each statement. Each response is given a numerical score to measure the participants overall attitude. (Cooper and Schlinder, 2006).

The author chose Likert Scale for this study because of several reasons as follows:

• It is common, very convenience, and most widely used (Cooper and Schlinder, 2006).

• It is probably more reliable and provides a greater volume of data than many other scales (Cooper and Schlinder, 2006).

• It is applicable to this study both that focus on the object or respondents study (Brunt and Paul, 1998).

In this study, data were interpreted using five-Likert scale (Malhotra, 2004) as the same serves as basis for the interpretation of the results of the computed data where the boundary of numeral and option includes:

Table 3.2. Relative Grading Statement for Each Dimension

Score Relative Grading Statement 5 Strongly Agree (SA) 4 Agree (A) 3 Naither Agree nor Disagree / Neutral (N) 2 Disagree (D) 1 Strongly Disagree (SD)

3.7. Testing Hypothesis and Data Analysis Method

3.7.1. Multiple Regression

The researcher use Multiple Regression model which is to learn more about the relationship between several independent or predictor variables and a dependent or criterion variable and analysis of variancze (ANOVA) which helps to examine the significant mean differences among more than two groups on an interval or ratio scaled dependent variable (Sekaran ,2003).

In any regression model, there is an implicit assumption (which can be tested) that a relationship exists between the variables. There is also some random error that cannot be predicted. Referring to the research objective to examine the variables that affect the customer satisfaction of the Chery QQ customer, the underlying multiple regression will be used:

Y = a + bX1 + cX2 + dX3+ eX4

Where:

Y = Overall customer satisfaction

a = Intercept

X1 = Product

X2 = Price

X3 = Place

X4 = Promotion

b, c, d, e = regression cooeficient of independent variable

The purposed of regression analysis is to come up with an equation of a line that fits through of points with the minimal amount F deviations from the line. It also has functions to understand the relationship between the variables and to predict value of one based on the other. Montgomery (1928) outlines the following four purposes for running a regression analysis:

1. Description – The analyst is seeking to find an equation that describes or summarizes the relationship between two variables. This purpose makes the fewest assumptions. 2. Coefficient Estimation – This is a popular reason for doing regression analysis. The analyst may have a theoretical relationship in mind, and the regression analysis will confirm this theory. Most likely, there is a specific interest in the magnitude and signs of the coefficients. Frequently, this purposed for regression overlaps with others. 3. Prediction – The prime concern here is to predict the response variable. These predictions may be very crucial in planning, monitoring, or evaluating some process or system. There are many assumptions and qualifications that must be made in this case. Interval estimates require that normality assumption to hold. 4. Control – Regression model may be used for monitoring and controlling a system. When a regression model is used for control purposes, the independent variable must be related to the dependent variable in a causal way. Furthermore, this functional relationship must continue over time. If it does not, continual modification of the model must occur.

The result from this regression analysis will be used to accept or to reject the hypothesis as to whether there is any effect or not between each independent variable with dependent variable. To decide whether to reject or not to reject the hypothesis, the criteria is α = 0.05.

3.7.2. Statistics Implementation

1. Measuring the Variability of the Regression Model.

a. Coefficient of Determination (R2)

Coefficient of Determination measures the variability in Y that is explained by the regression equation. The R2 value can range from a low of 0 to a high 1 (0≤R2≤1):

If R2 = 0, X explains 0% of the variability in Y

If R2 = 1, X explains 100% of the variability in Y

b. Coefficient of Correlation (R)

Coefficient Correlation can be divided as the following:

1) 0.70 – 1.00 (either plus or minus) shows high correlation

2) 0.40 - <0.70 (either plus or minus) shows substantial correlation

3) 0.20 - <0.40 (either plus or minus) shows low correlation

4) <0.20 (either plus or minus) shows no correlation

2. Testing the Model for significance

Coefficient pf Correlation shows the degree or strenght of the linear relationship. It can be stated at any number between +1 and -1. The value of R is the square root of R2. In the hypothesis testing, the researcher use F test and t test.

a. F-test F-test determines whether or not there is a relationship between the set of independent variables and dependent variable simultaneously. An F-test is used to statistically test the null hypothesis that there is no linear relationship between

X and Y variable. If the significance level for F-test is below 0.05, we reject H0 and conclude there is a linear relationship, and vice versa.

Ho: b = c = d = e = 0

(If significant F < 0.05, reject H0)

Ha: At least one coefficient ≠ 0

(If significant F > 0.05 do not reject H0) c. t-Test

t-Test is applied to determine the partial relationship between each independent variable (coefficient) and the dependent variable. The null hypothesis is that the coefficient of X (i.e. the slope of the line) is 0. If the significance level for t-test

is low (significance level α used is 0.05), we reject H0 and conclude that there is a linear relationship, and vice versa.

Ho: b = 0, if significance t < 0.05, reject Ho

Ha: b ≠ 0, if significance t > 0.05, do not reject Ho

Ho: c = 0, if significance t < 0.05, reject Ho

Ha: c ≠ 0, if significance t > 0.05, do not reject Ho

Ho: d = 0, if significance t < 0.05, reject Ho

Ha: d ≠ 0, if significance t > 0.05, do not reject Ho

Ho: e = 0, if significance t < 0.05, reject Ho

Ha: e ≠ 0, if significance t > 0.05, do not reject Ho

3.8. Sampling Design

3.8.1. Size of Population

Population simply is general area that consists of: object or subject has quantity and certain characteristic considered by the researcher to be studied and then taken conclusion. The size of population is 242 taken from number of sales of Chery QQ in North Jakarta from it is launched in 2006.

3.8.2. Sampling Technique Applied

Sample is the part of the population that we actually examine in order to gather information. So we can apply the concept to this research. There are several sampling method that’s can be used to collect the data. Those method such as random sampling, cluster sampling and so on.

The researcher uses purposive convenience sampling method for the research to gather the data from the respondent. The amount of data taken is targeted to have confidence level of 90%, and a margin error of 10%.

The sample size population was determined using the formula Slovin, (1960) as follows:

= + 푵 퐧 ퟐ ퟏ 푵풆

Where :

n = sample size

N = population size

e = desired margin of error

242 = 1 + (242(.1) 푛 2 n = 70.7

The result of computation above shows n = 70.7

The researcher round it up to 74 respondents

3.9. Who the Respondents are

The respondents for this research are the customer of Chery QQ from North Jakarta only.

3.10. Limitations

In doing this research, there were some limitations faced by the researcher such as lack of supporting data of Chery QQ customers when submitting the questionnaire. Some customers are not willing to fill the questioner, and some of them did not bringing back the questioner to the researcher. The researcher has a short time to finding the customer of Chery QQ because it is not easy to find this car in the road. The researchers only distribute the questioner from the customer of Chery QQ in North Jakarta only. 47

CHAPTER IV

ANALYSIS OF DATA AND INTERPRETATION OF RESULTS

4.1. Research Objectives Description

In this chapter, the researcher presents full analysis of the data gathered, from respondents’ profile to the interpretation of results. The purpose of this research is to find out the most dominant factor that affects the decreasing sales of Chery QQ. In other to know if there is any significant influence from the factors mentioned before, the researcher use Multiple Regression Method. In this research objective, the researcher collected the data from the consumer of Chery QQ by distributing the questionnaire.

4.2. Regression Analysis and Model Result

The basic assumptions tests for regression model are normally test, autocorrelation test and multicollinearity test. If the regression model does not fulfill the test, so the explaining variables are not efficient.

4.2.1. Autocorrelation Test

Durbin Watson Test is used to test the autocorrelation. This test objective is to see whether the correlation between dependent variable with itself exists or not. Santoso (1999) said that the value of Durbin-Watson used to test the autocorrelation with the stipulation if the value in range between (-2) until (2) means there is no autocorrelation.

Table 4.1. Autocorrelation Model Durbin-Watson 1 1.062

4.2.2. Coefficient of Correlation and Determination

Coefficient Determination is used to test goodness-of-fit from regression model. From the table below, we can see the coefficient correlation (R) of the regression model is 0.364 which means that there is low relationship of the combination of indpendent variables to the dependent variable. The coefficient of determination (R2) is 0.132, which means 13.2% variability in the dependent variable, customer satisfaction of Chery QQ can be explained by the variability in the combination of 4 (four) independent variables which are Product, Price, Promotion, and Place. We can see the R and R2 in the table 4.2 below.

Table 4.2. Model Summary

Adjusted R Std. Error of Model R R Square Square the Estimate Durbin-Watson 1 .364a .132 .082 .69177 1.062 a. Predictors: (Constant), x4, x3, x1, x2 b. Dependent Variable: Y

Source: Appendix, SPSS Result

4.2.3. Significance of the Model

1. Simultaneous Influence F-test (P value)

ANOVA (analysis of variance) shows the value of F calculation. Simultaneous effect or F-test is used to see whether independent variables altogether or simultaneously affect the dependent variable.

The significance level F for a given hypothesis test is a value for which P-value (sig.F) less than or equal to α is considered statistically significant. Typical value for α used in this research is 0.05 (confidence level).

From the table 4.3. below, it shows that the value of F test is 2.63 with significance value of 0.042 (<0.05). Therefore, the significance value is less than 0.05, it concludes that Product, Price, Promotion, and Place are affecting the customer satisfaction of Chery QQ. In conclusion of the F test, there is a simultaneous affect of Product, Price, Promotion, and Place.

Table 4.3. ANOVA Sum of Model Squares df Mean Square F Sig. 1 Regression 5.034 4 1.259 2.630 .042a Residual 33.020 69 .479 Total 38.054 73 a. Predictors: (Constant), x4, x3, x1, x2 b. Dependent Variable: Y

Source: Appendix, SPSS Result

2. Partial F-test (t-test)

Partial test is used to see the effect of each independent variable toward dependent variable. Below is the table 4.4. that shows the result of partial test. From the four independent variables which included in the regression model, one of the independent variable (Product) does affect the dependent variable, the overall customer satisfaction of Chery QQ significantly, because the value of significance of product variable is 0.006 respectively which is lower than 0.05.

The other variables, such as Price, Promotion, and Place, doesn not affect the dependent variable significantly, because the value of significance of the variable is 0.333, 0.513, 0.579 which are greater than 0.05.

Table 4.4. Coefficients Standardized Unstandardized Coefficients Coefficients Model B Std. Error Beta t Sig. 1 (Constant) 1.915 .681 2.814 .006 x1 .470 .166 .328 2.841 .006 x2 .155 .159 .116 .975 .333 x3 .116 .177 .074 .657 .513 x4 -.071 .128 -.066 -.557 .579 a. Dependent Variable: Y

Source: Appendix, SPSS Result

3. Multiple Regression Model

The regression model that already discussed in analysis method in chapter 3, the researcher fulfills the calculation result (intercept and cooficients) from table 4.3 into the multiple regression models.

Y = 1.915 + 0.470X1 + 0.155X2 + 0.116X3 - 0.071X4

Where:

Y = Overall customer satisfaction

a = Intercept

X1 = Product

X2 = Price

X3 = Promotion

X4 = Place

b, c, d, e = regression coeficient of independent variable

4.2.4. Detailed Hypothesis Discussion Table 4.5. Coefficients Standardized Unstandardized Coefficients Coefficients Model B Std. Error Beta T Sig. 1 (Constant) 1.915 .681 2.814 .006 x1 .470 .166 .328 2.841 .006 x2 .155 .159 .116 .975 .333 x3 .116 .177 .074 .657 .513 x4 -.071 .128 -.066 -.557 .579 a. Dependent Variable: Y

Source: Appendix, SPSS Result

Coefficient of determination (R2) of the model is 0.132. It means that 13.2% variability of the dependent variable in this research which is the customer satisfaction of Chery QQ can be explained by the variability combination of Product, Price, Promotion, and Place. The rest are explained by other variables out of the model.

The partial (t-test) is done to see the effect of each independent variable individually toward the dependent variable in the regression model. In this research, the partial test (t-test) was conducted in order to see whether the Product, Price, Promotion, and Place are individually affecting the customer satisfaction of Chery QQ.

Therefore, the hypotheses of this t-test are:

Ho: ß = 0, if t significant < 0.05, reject Ho

Ha: ß ≠ 0, if significant t > 0.05, do not reject Ha

Simultaneous effect test (F-test) is done for this research to see if the independent variables altogether affects the dependent variable. In this research, the test is done to see whether the Product, Price, Promotion, and Place altogether affect the customer satisfaction of Chery QQ.

The hypotheses of this F test are:

Ho: b = c = d = e = 0, if significant F < 0.05, reject Ho

Ha: At least one coefficient = 0, if significant F > 0.05, do not reject H0

According to the hypothesis test, there is no sufficient evidence to reject Ha or not to reject Ho at the significance level 0.00. In another calculation result, the value of F is 2.63, since the F calculation greater than F table (0.05) = 2.53, so the conclusion same with above, accept Ho. It means that Product, Price, Promotion, and Place altogether affect the customer satisfaction of Chery QQ significantly.

The explanations of each t test are stated below:

1. Test of Product

Based on the calculation, the value of significance is 0.006 it is less than 0.05.

According to the hypothesis test, there is sufficient evidence to reject Ho. It means that Product affecting the overall customer satisfaction of Chery QQ significantly.

2. Test of Price

Based on the calculation, the value of significance is 0.333 it is greater than 0.05. According to the hypothesis test, there is sufficient evidence to reject Ho. It means that Price does not affect the overall customer satisfaction of Chery QQ significantly.

3. Test of Promotion

Based on the calculation, the value of significance is 0.513 it is greater than 0.05. According to the hypothesis test, there is sufficient evidence not to reject Ho. It means that Promotion does not affect the overall customer satisfaction of Chery QQ significantly.

4. Test of Place

Based on the calculation, the value of significance is 0.579 it is greater than 0.05. According to the hypothesis test, there is no sufficient evidence not to reject Ho. It means that Place does not affect the overall customer satisfaction of Chery QQ significantly.

CHAPTER V

CONCLUSION AND RECOMMENDATIONS

5.1. Conclusions

The research has been conducted and lead to a clearer view about the problem. Therefore, this chapter would be the answer of the research statement in the chapter 1. The conclusion was built based on the data analysis of the research and some calculation in chapter IV. Through the observation and analysis that had been done, the researcher able to answered the most crucial question in the statement problem.

Based on calculation result by the researcher, so that the researchers take the conclusions:

1. The result from calculating by using multiple regression model in the R2 shown value 0.132 it is mean how well the regression model fit the fact data 13.2% can explain and describe the researcher data and the result is significant. 2. The result from calculating by using multiple regression models in the F table shown significant value 0.042, it is mean all independent variables which are Marketing Mix dimensions have a strong relation with dependent variable which is the customer satisfaction of Chery QQ. 3. The result from calculating by using multiple regression models in the t table shown one significant value there is 0.006 from independent variable which is Product that has strong relationship with dependent variable which is the customer satisfaction of Chery QQ. 4. The most important factor that causes the decline in sales of Chery QQ is the product aspect. The quality of Chery QQ is not good, because the engine of

Chery QQ is not good and caused the car unstable. The feature of Chery is not much, this cause the customer not interested to purchase this car.

5. The factor that needs to be improved to push the Chery QQ sales is the product aspect. Chery should increase the feature and design of Chery QQ and keep improving their quality.

5.2. Recommendation

In my conclusion, the decreasing sales of Chery QQ are caused by the quality of the product, because the product of Chery QQ is not good, and these causes the customers not satisfy to buy the car.This problems cause the sales of Chery QQ to decrease. Based on the result of the analysis, Chery QQ should mantain the price of product that had been well accepted by consumer. The weakness of Chery QQ is on their product, then, the quality of Chery QQ should be increased to gaining more customers.

1. For the product aspect, Chery QQ should increase the quality of the product. Consumer look forward to the qualtiy of product in make decision to buy something. If they look the quality of products are poor so they will not consider to buy those product. 2. Chery QQ should add more feature for the product, it will make the customer interest in purchasing the product. 3. The colour of Chery QQ car is not many they should make another colour for the car. To give the customers option in chosing the colour of the car. 4. Chery QQ should refresh the design interior & exterior of the car. It will make the customer not to get bored. 5. For further studies or research related to this topic, the researcher recommends doing the research using other appropriate settings, variables, instruments, and respondents.

REFERENCES

Books

Baumol, William J. & Blinder, Alan S. (2003). Economics: Principle and Policy 9th Ed. South Western, USA: Thompson.

Clayton, G.E. (2008). Economics: Principles and Practices. McGraw-Hill.

Cooper, Donald R. and Schindler, Pamela. (2006). Marketing Research. Boston: McGraw-Hill.

Cravens, David W. & Piercy, Nigel F. (2006), Strategic Marketing. Singapore: McGraw-Hill.

Del I. Hawkins, Roger J. Best & Kenneth A. Coney (2004), Consumer Behavior: Building Marketing Strategy, International Edition, McGraw Hill.

Hawkins and Looney (2004). Consumer Behavior 9th Ed. McGraw-Hill

J.Paul Peter, Jerry C. Olson (2003). Consumer behavior & Marketing Strategy (7th Edition). Mcgraw-Hill.

Kotler, Philip & Armstrong, Gary. (2005). Principle of Marketing, USA: Prentice Hall.

Kotler, Philip., Ang, Swee Hoon., Leong, Siew Meng. & Tan, Chin Tiong. (1999). Marketing Management. Singapore: Prentice Hall.

McDaniel, Carl. (2006). Introduction to Marketing 9th Ed. Thomson South Western.

Naresh K. Malhotra. Marketing Research. Pearson Prentice-Hall International Inc, 1996 58

Nachiamas, C.F. & Nachiamas D. (2000). Research methods in the social sciences (5th Ed.). London: St. Martins Press Inc.

Parkin, M., Powell, M., & Matthews, K. (2005). Economics (6th Ed.). London: Pearson Education.

Santoso, Singgih. (1999). Buku Latihan SPSS Statistik Parametrik. PT. Elex Media Komputindo, Jakarta.

Sekaran, Umar. (2003). Research Method For Business, (4th ed) USA: John Wiley.

Stern, Louis W. & El – Ansary, Adel I. (1996), Marketing Channels. New Jersey : Prentice Hall.

Company

PT. Indomobil, Tbk.

Badan Pusat Statistik

Internet http://www.chery-indomobil.com/qq.htm http://chery-qq.blogspot.com/ www.wikipedia.com

APPENDICES

Product

Correlations

1 2 3 4 5 6 7 8 9 10 Total

1 Pearson Correlation 1 .803** .329 .597 .410 .613 .363 .552 .353 .062 .933**

Sig. (2-tailed) .005 .353 .069 .239 .060 .303 .098 .317 .866 .000

N 10 10 10 10 10 10 10 10 10 10 10

2 Pearson Correlation .803** 1 .224 .483 .245 .402 .113 .388 .488 -.383 .678*

Sig. (2-tailed) .005 .535 .158 .495 .250 .756 .268 .153 .274 .031

N 10 10 10 10 10 10 10 10 10 10 10

3 Pearson Correlation .329 .224 1 .554 -.456 .195 .477 -.342 .600 .343 .530

Sig. (2-tailed) .353 .535 .097 .185 .590 .163 .334 .067 .332 .115

N 10 10 10 10 10 10 10 10 10 10 10

4 Pearson Correlation .597 .483 .554 1 .000 .447 .525 -.164 .453 .142 .737*

Sig. (2-tailed) .069 .158 .097 1.000 .195 .120 .652 .189 .695 .015

N 10 10 10 10 10 10 10 10 10 10 10

5 Pearson Correlation .410 .245 -.456 .000 1 .328 -.308 .576 -.299 .157 .309

Sig. (2-tailed) .239 .495 .185 1.000 .355 .387 .082 .402 .666 .385

N 10 10 10 10 10 10 10 10 10 10 10

6 Pearson Correlation .613 .402 .195 .447 .328 1 -.061 .439 .431 -.139 .660*

Sig. (2-tailed) .060 .250 .590 .195 .355 .868 .205 .214 .703 .038

N 10 10 10 10 10 10 10 10 10 10 10

7 Pearson Correlation .363 .113 .477 .525 -.308 -.061 1 .073 -.074 .477 .500

Sig. (2-tailed) .303 .756 .163 .120 .387 .868 .841 .840 .164 .141

N 10 10 10 10 10 10 10 10 10 10 10

8 Pearson Correlation .552 .388 -.342 -.164 .576 .439 .073 1 -.241 -.027 .430

Sig. (2-tailed) .098 .268 .334 .652 .082 .205 .841 .503 .941 .215 60

N 10 10 10 10 10 10 10 10 10 10 10

9 Pearson Correlation .353 .488 .600 .453 -.299 .431 -.074 -.241 1 -.356 .398

Sig. (2-tailed) .317 .153 .067 .189 .402 .214 .840 .503 .313 .255

N 10 10 10 10 10 10 10 10 10 10 10

10 Pearson Correlation .062 -.383 .343 .142 .157 -.139 .477 -.027 -.356 1 .720

Sig. (2-tailed) .866 .274 .332 .695 .666 .703 .164 .941 .313 .468

N 10 10 10 10 10 10 10 10 10 10 10

Total Pearson Correlation .933** .678* .530 .737* .309 .660* .500 .430 .398 .720 1

Sig. (2-tailed) .000 .031 .115 .015 .385 .038 .141 .215 .255 .468

N 10 10 10 10 10 10 10 10 10 10 10

**. Correlation is significant at the 0.01 level (2-tailed).

*. Correlation is significant at the 0.05 level (2-tailed).

Price

Correlations

1 2 3 4 5 6 7 8 9 10 Total

1 Pearson Correlation 1 .544 .447 .000 .597 .000 .453 .525 .554 .483 .737*

Sig. (2-tailed) .104 .195 1.000 .069 1.000 .189 .120 .097 .158 .015

N 10 10 10 10 10 10 10 10 10 10 10

2 Pearson Correlation .544 1 .451 .296 .823** .299 .548 .074 .218 .976** .693*

Sig. (2-tailed) .104 .191 .406 .003 .402 .101 .840 .545 .000 .026

N 10 10 10 10 10 10 10 10 10 10 10

3 Pearson Correlation .447 .451 1 .205 .613 .328 .431 -.061 .195 .402 .660*

Sig. (2-tailed) .195 .191 .569 .060 .355 .214 .868 .590 .250 .038

N 10 10 10 10 10 10 10 10 10 10 10

4 Pearson Correlation .000 .296 .205 1 .629 .130 -.062 .517 .107 .383 .551

Sig. (2-tailed) 1.000 .406 .569 .052 .720 .864 .126 .768 .274 .099

N 10 10 10 10 10 10 10 10 10 10 10

5 Pearson Correlation .597 .823** .613 .629 1 .410 .353 .363 .329 .803** .933**

Sig. (2-tailed) .069 .003 .060 .052 .239 .317 .303 .353 .005 .000

N 10 10 10 10 10 10 10 10 10 10 10

Pearson Correlation .000 .299 .328 .130 .410 1 -.299 -.308 -.456 .245 .309

Sig. (2-tailed) 1.000 .402 .355 .720 .239 .402 .387 .185 .495 .385

N 10 10 10 10 10 10 10 10 10 10 10

7 Pearson Correlation .453 .548 .431 -.062 .353 -.299 1 -.074 .600 .488 .398

Sig. (2-tailed) .189 .101 .214 .864 .317 .402 .840 .067 .153 .255

N 10 10 10 10 10 10 10 10 10 10 10

8 Pearson Correlation .525 .074 -.061 .517 .363 -.308 -.074 1 .477 .113 .500

Sig. (2-tailed) .120 .840 .868 .126 .303 .387 .840 .163 .756 .141

N 10 10 10 10 10 10 10 10 10 10 10

9 Pearson Correlation .554 .218 .195 .107 .329 -.456 .600 .477 1 .224 .530

Sig. (2-tailed) .097 .545 .590 .768 .353 .185 .067 .163 .535 .115

N 10 10 10 10 10 10 10 10 10 10 10

10 Pearson Correlation .483 .976** .402 .383 .803** .245 .488 .113 .224 1 .678*

Sig. (2-tailed) .158 .000 .250 .274 .005 .495 .153 .756 .535 .031

N 10 10 10 10 10 10 10 10 10 10 10

Total Pearson Correlation .737* .693* .660* .551 .933** .309 .398 .500 .530 .678* 1

Sig. (2-tailed) .015 .026 .038 .099 .000 .385 .255 .141 .115 .031

N 10 10 10 10 10 10 10 10 10 10 10

*. Correlation is significant at the 0.05 level (2-tailed).

**. Correlation is significant at the 0.01 level (2-tailed).

Promotion

Correlations

1 2 3 4 5 6 7 8 9 10 Total

1 Pearson Correlation 1 -.544 .043 .288 .169 .239 .113 -.068 .029 -.617 .775

Sig. (2-tailed) .104 .905 .420 .641 .506 .756 .853 .937 .058 .286

N 10 10 10 10 10 10 10 10 10 10 10

2 Pearson Correlation -.544 1 .498 -.502 -.603 -.261 -.508 .282 -.422 .021 -.504

Sig. (2-tailed) .104 .143 .139 .065 .467 .134 .429 .224 .954 .138

N 10 10 10 10 10 10 10 10 10 10 10

3 Pearson Correlation .043 .498 1 -.185 -.656* -.246 .038 .090 -.615 -.339 -.182

Sig. (2-tailed) .905 .143 .609 .039 .494 .918 .805 .058 .338 .614

N 10 10 10 10 10 10 10 10 10 10 10

4 Pearson Correlation .288 -.502 -.185 1 .160 .188 .110 .185 .383 .128 .816**

Sig. (2-tailed) .420 .139 .609 .659 .602 .763 .609 .275 .724 .004

N 10 10 10 10 10 10 10 10 10 10 10

5 Pearson Correlation .169 -.603 -.656* .160 1 .039 -.177 .626 .052 .216 .685

Sig. (2-tailed) .641 .065 .039 .659 .915 .625 .053 .887 .549 .815

N 10 10 10 10 10 10 10 10 10 10 10

6 Pearson Correlation .239 -.261 -.246 .188 .039 1 .113 .101 .173 -.214 .559

Sig. (2-tailed) .506 .467 .494 .602 .915 .756 .780 .632 .552 .093

N 10 10 10 10 10 10 10 10 10 10 10

7 Pearson Correlation .113 -.508 .038 .110 -.177 .113 1 -.022 .432 -.113 .730

Sig. (2-tailed) .756 .134 .918 .763 .625 .756 .952 .212 .756 .317

N 10 10 10 10 10 10 10 10 10 10 10

8 Pearson Correlation -.068 .282 .090 .185 .626 .101 -.022 1 .135 -.271 .271

Sig. (2-tailed) .853 .429 .805 .609 .053 .780 .952 .710 .449 .449

N 10 10 10 10 10 10 10 10 10 10 10

9 Pearson Correlation .029 -.422 -.615 .383 .052 .173 .432 .135 1 .339 .704

Sig. (2-tailed) .937 .224 .058 .275 .887 .632 .212 .710 .338 .065 63

N 10 10 10 10 10 10 10 10 10 10 10

10 Pearson Correlation -.617 .021 -.339 .128 .216 -.214 -.113 -.271 .339 1 .029

Sig. (2-tailed) .058 .954 .338 .724 .549 .552 .756 .449 .338 .936

N 10 10 10 10 10 10 10 10 10 10 10

Total Pearson Correlation .775 -.504 -.182 .816** .685 .559 .730 .271 .704 .029 1

Sig. (2-tailed) .286 .138 .614 .004 .815 .093 .317 .449 .065 .936

N 10 10 10 10 10 10 10 10 10 10 10

*. Correlation is significant at the 0.05 level (2-tailed).

**. Correlation is significant at the 0.01 level (2-tailed).

Place

Correlations

1 2 3 4 5 6 7 8 9 10 Total

1 Pearson Correlation 1 .863** .283 .509 .744* .691* .339 -.092 .470 .470 .901**

Sig. (2-tailed) .001 .427 .133 .014 .027 .338 .800 .171 .171 .000

N 10 10 10 10 10 10 10 10 10 10 10

2 Pearson Correlation .863** 1 .623 .358 .474 .371 .074 -.223 .268 .062 .675*

Sig. (2-tailed) .001 .054 .310 .166 .291 .838 .536 .454 .865 .032

N 10 10 10 10 10 10 10 10 10 10 10

3 Pearson Correlation .283 .623 1 .135 .000 -.203 -.149 .000 .124 -.248 .261

Sig. (2-tailed) .427 .054 .711 1.000 .573 .680 1.000 .732 .489 .467

N 10 10 10 10 10 10 10 10 10 10 10

4 Pearson Correlation .509 .358 .135 1 .541 .799** .354 .342 -.174 .361 .696*

Sig. (2-tailed) .133 .310 .711 .107 .006 .316 .334 .631 .305 .025

N 10 10 10 10 10 10 10 10 10 10 10

5 Pearson Correlation .744* .474 .000 .541 1 .696* .682* .038 .518 .518 .870**

Sig. (2-tailed) .014 .166 1.000 .107 .025 .030 .916 .125 .125 .001

N 10 10 10 10 10 10 10 10 10 10 10

6 Pearson Correlation .691* .371 -.203 .799** .696* 1 .413 .020 .192 .495 .756*

Sig. (2-tailed) .027 .291 .573 .006 .025 .235 .957 .595 .146 .011

N 10 10 10 10 10 10 10 10 10 10 10

7 Pearson Correlation .339 .074 -.149 .354 .682* .413 1 .554 .238 .238 .592

Sig. (2-tailed) .338 .838 .680 .316 .030 .235 .097 .509 .509 .071

N 10 10 10 10 10 10 10 10 10 10 10

8 Pearson Correlation -.092 -.223 .000 .342 .038 .020 .554 1 -.267 .218 .215

Sig. (2-tailed) .800 .536 1.000 .334 .916 .957 .097 .456 .545 .552

N 10 10 10 10 10 10 10 10 10 10 10

9 Pearson Correlation .470 .268 .124 -.174 .518 .192 .238 -.267 1 .383 .465

Sig. (2-tailed) .171 .454 .732 .631 .125 .595 .509 .456 .275 .176

N 10 10 10 10 10 10 10 10 10 10 10

10 Pearson Correlation .470 .062 -.248 .361 .518 .495 .238 .218 .383 1 .576

Sig. (2-tailed) .171 .865 .489 .305 .125 .146 .509 .545 .275 .081

N 10 10 10 10 10 10 10 10 10 10 10

Total Pearson Correlation .901** .675* .261 .696* .870** .756* .592 .215 .465 .576 1

Sig. (2-tailed) .000 .032 .467 .025 .001 .011 .071 .552 .176 .081

N 10 10 10 10 10 10 10 10 10 10 10

**. Correlation is significant at the 0.01 level (2-tailed).

*. Correlation is significant at the 0.05 level (2-tailed).

Draft questionnaire before the validity & realibility test (Indonesian Version)

5 = Sangat Setuju 4 = setuju 3 = netral 2 = tidak setuju 1 = sangat tidak setuju

PRODUCT

1 Bentuk mobil Chery QQ tidak ketinggalan jaman, stylish, aerodinamis.

Nilai Anda

2 Kualitas mobil Chery QQ memuaskan Nilai Anda

3 Features yang diberikan telah sesuai dengan harapan Nilai Anda

4 Merk Chery QQ cukup dikenal masyarakat Nilai Anda

5 Chery QQ memiliki pilihan jenis dan warna yang cukup menarik Nilai Anda

6 Konsumsi bahan bakar Chery QQ effisien/irit Nilai Anda

7 Mesin Chery QQ bandel, gesit Nilai Anda

8 Suspensi Chery QQ empuk dan stabil Nilai Anda

9 Warna dan design Chery QQ sangat menarik perhatian Nilai Anda

10 Chery QQ memiliki beberapa variant atau jenis yang sangat menarik Nilai Anda

HARGA

1 Harga Chery QQ sangat terjangkau Nilai Anda

2 Harga jual kembali cukup stabil Nilai Anda

3 Harga Chery QQ sebanding dengan qualitas Nilai Anda

4 Program cicilan yang di tawarkan cukup menarik Nilai Anda

5 Harga service Chery QQ cukup terjangkau Nilai Anda

6 Discount yang diberikan cukup menarik Nilai Anda

7 Proses pelunasan Chery QQ sangat mudah Nilai Anda

8 Harga Chery QQ sangat stabil Nilai Anda

9 Chery QQ sering memberikan promo yang menarik Nilai Anda

10 Harga Chery QQ sangat kompetitiv Nilai Anda

PROMOSI

1 Promosi Chery QQ memikat masyarakt Nilai Anda

2 Sering melihat iklan, banner, dll tentang chery QQ Nilai Anda

3 Iklan dan promosi Chery QQ sangat menarik Nilai Anda

4 Iklan Chery QQ sangat menarik Nilai Anda

5 Harga promosi yang diberikan perusahaan menarik perhatian Nilai Anda

6 Chery QQ memasarkan produknya dengan baik Nilai Anda

7 Chery QQ sering mengikuti pameran mobil Nilai Anda

8 Billboard, banner, dan spanduk Chery QQ sering terlihat di jalan Nilai Anda

9 Chery QQ gencar mempromosikan produknya Nilai Anda

10 Advertising Chery QQ sanngat menarik perhatian Nilai Anda

TEMPAT

1 Bengkel Chery QQ mudah dijangkau Nilai Anda

2 Suku Cadang mudah didapat dan harga murah Nilai Anda

3 Pusat penjualan dan perawatan tidak sulit ditemui Nilai Anda

4 Show room Chery QQ berada di kota-kota besar, sehingga mudah untuk ditemui Nilai Anda

5 Service Chery QQ tidak memakan waktu yang lama Nilai Anda

6 Tempat service Chery berada di kota-kota besar, sehingga mudah dijangkau Nilai Anda

7 Pusat penjualan dan perawatan tersebar di seluruh pelosok Indonesia Nilai Anda

8 Chery QQ memiliki bengkel yang tersebar di seluruh kota besar di Indonesia Nilai Anda

9 Customer Chery QQ dapat dengan mudah menemukan tempat service mobil tersebut Nilai Anda

10 Chery QQ memudahkan customer dalam menemukan tempat service Nilai Anda

Overall

1 Secara keseluruhan Chery QQ sangat nyaman dan saya puas menggunakan Chery QQ Nilai Anda

Valid Questionnaire (Indonesian Version)

Berilah nilai dari 1 - 5 dari pertanyaan berikut. 5 = Sangat Setuju 4 = setuju 3 = netral 2 = tidak setuju 1 = sangat tidak setuju

PRODUCT

1 Bentuk mobil Chery QQ tidak ketinggalan jaman, stylish, aerodinamis.

Nilai Anda

2 Kualitas mobil Chery QQ memuaskan Nilai Anda

3 Merk Chery QQ cukup dikenal masyarakat Nilai Anda

4 Konsumsi bahan bakar Chery QQ effisien/irit Nilai Anda

5 Chery QQ memiliki beberapa variant atau jenis yang sangat menarik Nilai Anda

HARGA

1 Harga Chery QQ sangat terjangkau Nilai Anda

2 Harga jual kembali cukup stabil Nilai Anda

3 Harga Chery QQ sebanding dengan qualitas Nilai Anda

4 Harga service Chery QQ cukup terjangkau Nilai Anda

5 Harga Chery QQ sangat kompetitiv Nilai Anda 70

PROMOSI

1 Promosi Chery QQ memikat masyarakt Nilai Anda

2 Iklan Chery QQ sangat menarik Nilai Anda

3 Harga promosi yang diberikan perusahaan menarik perhatian Nilai Anda

4 Chery QQ sering mengikuti pameran mobil Nilai Anda

5 Chery QQ gencar mempromosikan produknya Nilai Anda

TEMPAT

1 Bengkel Chery QQ mudah dijangkau Nilai Anda

2 Suku Cadang mudah didapat dan harga murah Nilai Anda

3. Show room Chery QQ berada di kota-kota besar, sehingga mudah untuk ditemui Nilai Anda

4 Service Chery QQ tidak memakan waktu yang lama Nilai Anda

5 Tempat service Chery berada di kota-kota besar, sehingga mudah dijangkau Nilai Anda

Overall

1 Secara keseluruhan Chery QQ sangat nyaman dan saya puas menggunakan Chery QQ Nilai Anda

Draft questionnaire before the validity & realibility test (English Version)

5 = Strongly Agree 4 = Agree 3 = Neutral 2 = Disagree 1 = Strongly Disagree

PRODUCT

1 Chery QQ car shape is not outdated, stylish and aerodynamics.

Your score

2 Quality of Chery QQ car is satisfactory Your score

3 Features provided in accordance with expectations Your score

4 Brand Chery QQ is known to public. Your score

5 Chery QQ have a choice of types and colors are quite attractive Your score

6 Chery QQ consumption of fuel is efficient / economical Your score

7 Chery QQ have a good quality of engine Your score

8 The Chery QQ Suspension is soft and stable Your score

9 The Chery QQ color and design is very attractive Your score

10 Chery QQ has several variants or types which are very interesting Your score

PRICE

1 The price of Chery QQ is affordable Your score

2 The Re-sale price of Chery QQ is stable Your score

3 The price of Chery QQ is comparable with its quality Your score

4 The installment promotion is quite attractive Your score

5 The service price of Chery QQ is quite affordable Your score

6 Discount given is quite attractive Your score

7 The payment process is very easy Your score

8 The price of Chery QQ is stable Your score

9 Chery QQ often give interesting promo Your score

10 The price of Chery QQ is competitive Your score 73

PROMOTION

1 Promotion of Chery QQ is attractive Your score

2 Often see the banner and advertising of Chery QQ Your score

3 Chery QQ have an inetersting promotion Your score

4 Chery QQ have an interesting advertisement Your score

5 Attractive promotion price Your score

6 Chery QQ have a good product promotion strategy Your score

7 Chery QQ often partcipate in a car show Your score

8 Billboard and banner of Chery QQ is shown on the road Your score

9 Chery QQ force their product promotion Your score

10 The advertising of Chery QQ is interesting Your score

PLACE

1 The service center of Chery QQ is reachable Your score

2 Spareparts of Chery QQ is easily available and cheap Your score

3 Sales and maintenance center is not difficult to find Your score

4 Chery QQ showrrom located in major cities, making it easy to find Your score

5 Chery QQ service does not take too long time Your score

6 Chery service places in big cities, so its easy to reach Your score

7 Sales and maintenance center spread all over Indonesia Your score

8 Chery QQ have a garage that spread across major city in Indonesia Your score

9 Customers Chery QQ can easily find the service place fpr the car Your score

10 Chery QQ facilitate customers in finding the service place Your score

Overall

1 Overall Chery QQ is very comfortable , and I am comfortable for using this car Your score

Valid Questionnaire (Indonesian Version)

Berilah nilai dari 1 - 5 dari pertanyaan berikut. 5 = Sangat Setuju 4 = setuju 3 = netral 2 = tidak setuju 1 = sangat tidak setuju

PRODUCT

1 Bentuk mobil Chery QQ tidak ketinggalan jaman, stylish, aerodinamis.

Nilai Anda

2 Kualitas mobil Chery QQ memuaskan Nilai Anda

3 Merk Chery QQ cukup dikenal masyarakat Nilai Anda

4 Konsumsi bahan bakar Chery QQ effisien/irit Nilai Anda

5 Chery QQ memiliki beberapa variant atau jenis yang sangat menarik Nilai Anda

HARGA

1 Harga Chery QQ sangat terjangkau Nilai Anda

2 Harga jual kembali cukup stabil Nilai Anda

3 Harga Chery QQ sebanding dengan qualitas Nilai Anda

4 Harga service Chery QQ cukup terjangkau Nilai Anda

5 Harga Chery QQ sangat kompetitiv Nilai Anda

PROMOSI

1 Promosi Chery QQ memikat masyarakt Nilai Anda

2 Iklan Chery QQ sangat menarik Nilai Anda

3 Harga promosi yang diberikan perusahaan menarik perhatian Nilai Anda

4 Chery QQ sering mengikuti pameran mobil Nilai Anda

5 Chery QQ gencar mempromosikan produknya Nilai Anda

TEMPAT

1 Bengkel Chery QQ mudah dijangkau Nilai Anda

2 Suku Cadang mudah didapat dan harga murah Nilai Anda

1. Show room Chery QQ berada di kota-kota besar, sehingga mudah untuk ditemui Nilai Anda

4 Service Chery QQ tidak memakan waktu yang lama Nilai Anda

5 Tempat service Chery berada di kota-kota besar, sehingga mudah dijangkau Nilai Anda

Overall

1 Secara keseluruhan Chery QQ sangat nyaman dan saya puas menggunakan Chery QQ Nilai Anda

Valid Questionnaire (English Versions\)

5 = Strongly Agree 4 = Agree 3 = Neutral 2 = Disagree 1 = Strongly Disagree PRODUCT

1 Chery QQ car shape is not outdated, stylish and aerodynamic Your Score

2 Quality of Chery QQ car is satisfactory Your Score

3 Brand Chery QQ is known to public Your Score

4 Chery QQ consumptionof fuel is efficient / economical Your Score

5 Chery QQ has several variants or types which are interesting Your Score

PRICE

1 The price of Chery QQ is affordable Your Score

2 The re-sale price of Chery QQ is stable 78

Your Score

3 The price of Chery QQ is comparable with its quality Your Score

4 The service price of Chery QQ is quite affordable Your Score

5 The price of Chery QQ is competitive Your Score

PROMOTION

1 Pronotion of Chery QQ is attractive Your Score

2 Chery QQ have an interesting advertisement Your Score

3 Attractive promotion price Your Score

4 Chery QQ often participate in a car show Your Score

5 Chery QQ force their product promotion Your Score

PLACE

1 The service center of Chery QQ is reachable Your Score

2 Spareparts of chery QQ is easily avalaible and cheap Your Score

3 Chery QQ's showroom located in major cities, making it easy to find Your Score

4 Chery QQ service does not take too long time Your Score

5 Chery QQ service places in a big cities, so it easy to reach Your Score

Overall

1 Overal Chery QQ is very comfortable and I am comfortable for using this car Your Score

RAW DATA PRODUCT VARIABLE x1 x2 x3 x4 x5 1 2 2 3 2 3 2 1 3 4 3 3 3 2 2 3 3 2 4 3 2 3 4 4 5 2 3 4 2 3 6 2 1 1 1 1 7 3 3 2 5 1 8 4 4 2 1 1 9 2 1 2 2 2 10 1 5 2 1 1 11 4 5 1 2 3 12 2 4 2 1 2 13 5 2 2 3 2 14 2 3 2 1 2 15 3 1 2 2 3 16 2 2 2 2 2 17 1 2 1 1 2 18 2 4 2 3 2

19 3 4 2 2 2 20 4 4 2 1 2 21 2 3 1 1 4 22 1 3 4 2 3 23 2 4 3 2 2 24 3 2 2 2 2 25 4 2 2 4 2 26 2 2 2 2 1 27 4 2 3 2 2 28 5 3 4 5 4 29 2 3 4 3 4 30 2 2 4 3 2 31 3 4 2 2 4 32 2 2 4 3 3 33 4 4 3 2 2 34 2 2 3 2 2 35 1 3 3 2 2 36 2 2 3 2 2 37 4 1 1 2 1 38 2 2 2 1 1 39 1 2 1 1 1 40 1 1 1 3 2 41 4 2 2 2 1 42 2 3 3 2 2 43 2 2 3 3 2 44 3 2 1 4 3 45 2 5 4 3 3 46 2 3 4 2 2 47 2 3 3 2 2 48 4 3 2 1 1 49 3 1 2 3 3 50 2 4 3 3 2 51 3 1 2 2 4 52 3 3 3 3 3 53 1 2 2 2 1 54 1 2 2 2 2 55 2 3 3 1 2 56 2 3 2 3 1 81

57 3 2 3 2 2 58 4 3 3 1 1 59 2 2 3 2 1 60 2 2 2 1 1 61 3 2 2 1 3 62 2 2 2 1 2 63 2 3 1 1 4 64 3 3 2 1 1 65 1 3 2 2 2 66 4 2 2 1 1 67 3 2 1 1 1 68 2 2 1 1 3 69 1 1 3 2 2 70 1 1 3 2 3 71 1 1 1 2 2 72 1 1 2 2 3 73 2 3 1 2 3 74 2 1 1 1 3

RAW DATA PRICE VARIABLE x1 x2 x3 x4 x5 1 5 4 4 1 4 2 5 5 4 4 4 3 5 4 5 4 4 4 4 4 5 3 3 5 5 4 3 2 3 6 4 4 4 2 3 7 3 3 3 2 3 8 2 2 2 2 2 9 4 4 4 3 2 10 5 5 5 2 4 11 5 4 3 4 5 12 5 4 4 4 4 13 4 4 5 5 4 14 5 4 3 5 4 15 4 5 4 3 5 16 3 4 4 4 4

17 3 4 5 3 3 18 4 5 4 4 3 19 4 4 5 4 3 20 3 4 3 3 4 21 5 4 3 4 3 22 4 4 3 3 2 23 4 3 4 4 3 24 4 4 4 3 3 25 4 3 3 4 3 26 4 3 3 4 4 27 5 4 4 4 2 28 4 4 5 4 3 29 4 3 3 3 2 30 4 4 4 4 3 31 4 5 4 4 4 32 5 3 3 5 5 33 4 3 3 4 4 34 4 5 3 3 3 35 4 5 4 3 5 36 3 3 4 3 4 37 3 3 4 4 4 38 4 4 4 5 3 39 4 4 5 2 4 40 4 3 4 4 5 41 3 4 4 2 4 42 4 2 5 4 3 43 4 3 4 5 4 44 2 4 3 3 4 45 4 3 5 2 4 46 5 4 2 4 5 47 5 3 3 3 4 48 4 4 4 2 5 49 3 3 4 5 5 50 3 4 5 4 4 51 4 5 5 4 4 52 2 3 3 5 4 53 3 3 3 4 5 54 3 3 2 4 2 83

55 4 4 4 5 4 56 3 4 2 3 4 57 3 2 3 3 4 58 3 3 3 3 4 59 4 3 4 3 3 60 3 4 4 4 4 61 4 3 3 3 5 62 2 4 2 4 4 63 5 4 4 5 5 64 5 4 4 3 4 65 3 4 5 4 5 66 3 4 2 5 4 67 4 3 3 3 3 68 2 4 4 5 4 69 4 5 4 2 3 70 3 3 4 5 4 71 4 3 3 4 1 72 5 5 4 4 4 73 4 2 3 3 5 74 5 4 5 5 4

RAW DATA PROMOTION VARIABLE x1 x2 x3 x4 x5 1 2 1 1 1 1 2 2 2 1 1 2 3 1 1 1 2 4 4 2 2 2 2 2 5 2 1 2 1 2 6 2 2 2 2 2 7 3 2 3 2 2 8 2 2 1 2 3 9 3 1 2 1 1 10 2 2 1 2 2 11 1 1 1 1 1 12 2 2 2 2 2 13 1 1 1 1 1 14 1 1 1 1 1

15 2 2 2 2 2 16 1 2 2 1 1 17 1 2 2 2 2 18 2 2 1 1 1 19 1 2 2 2 2 20 1 1 1 1 1 21 1 1 1 2 2 22 2 2 2 2 1 23 1 2 2 2 1 24 2 2 2 2 2 25 1 1 1 1 1 26 1 2 2 2 2 27 1 1 2 1 2 28 1 2 2 1 1 29 1 2 1 2 2 30 1 1 2 2 2 31 1 1 1 1 2 32 2 2 2 2 2 33 2 1 1 1 2 34 2 2 2 2 2 35 1 1 1 1 1 36 2 2 2 2 2 37 1 2 1 1 2 38 1 1 1 1 2 39 3 2 2 2 2 40 1 1 2 2 2 41 3 2 2 2 1 42 2 2 3 3 2 43 2 2 2 1 1 44 2 3 2 2 2 45 2 1 1 3 3 46 2 2 2 2 2 47 1 2 1 2 2 48 3 1 2 1 2 49 2 2 1 1 1 50 2 1 1 2 3 51 1 1 1 2 2 52 2 2 2 3 2 85

53 2 1 1 1 2 54 3 2 3 2 2 55 1 1 2 2 3 56 2 2 1 1 1 57 2 2 1 1 2 58 2 2 1 1 1 59 2 1 2 2 2 60 1 2 2 2 3 61 2 2 2 1 2 62 2 1 1 1 2 63 2 2 2 2 3 64 3 2 2 1 1 65 3 2 2 3 2 66 2 2 1 1 2 67 3 2 2 3 1 68 1 2 2 1 2 69 2 1 1 2 3 70 2 2 2 2 2 71 2 3 3 3 1 72 2 3 3 2 2 73 2 1 1 1 1 74 2 2 2 2 2

RAW DATA PLACE VARIABLE x1 x2 x3 x4 x5 1 4 4 4 2 4 2 3 4 4 1 3 3 4 4 4 4 4 4 4 4 3 2 3 5 2 3 4 1 2 6 3 4 3 2 2 7 2 2 2 2 3 8 1 1 2 1 1 9 2 2 2 2 4 10 5 4 2 2 5 11 2 3 4 2 3 12 4 3 2 2 3

13 2 3 4 4 5 14 3 2 4 5 3 15 3 3 4 4 3 16 4 3 3 3 4 17 4 3 3 3 3 18 3 4 5 3 3 19 3 3 3 2 2 20 4 3 2 3 3 21 4 3 3 4 3 22 3 3 2 2 3 23 3 4 4 3 4 24 3 3 2 2 3 25 4 4 3 3 3 26 3 2 2 2 3 27 3 4 4 3 3 28 3 4 2 2 2 29 3 3 3 4 4 30 4 3 2 2 3 31 3 2 2 3 4 32 4 3 3 2 3 33 2 2 3 3 4 34 3 4 3 4 3 35 3 3 2 2 2 36 3 4 4 4 3 37 3 3 2 2 2 38 3 3 4 3 3 39 3 2 2 2 3 40 2 2 2 3 4 41 3 3 4 2 4 42 4 4 3 3 3 43 4 3 3 3 3 44 3 3 3 4 4 45 4 3 4 4 4 46 4 4 3 3 3 47 5 3 4 5 5 48 5 5 4 4 4 49 4 5 4 4 3 50 3 5 5 4 3 87

51 3 5 5 5 4 52 4 3 3 4 5 53 2 2 3 3 4 54 4 4 5 5 4 55 3 4 4 5 3 56 3 3 3 3 5 57 4 2 3 3 5 58 3 3 3 4 4 59 3 4 3 4 3 60 4 3 4 5 3 61 3 3 3 4 3 62 3 3 3 4 3 63 4 3 5 4 4 64 4 2 3 3 3 65 3 5 5 3 4 66 4 3 3 2 3 67 3 3 2 5 3 68 3 4 4 5 3 69 2 5 5 3 5 70 3 4 5 5 5 71 4 5 5 3 4 72 3 5 5 3 3 73 2 1 1 1 1 74 2 2 2 2 2

Model Summaryb

Std. Error of the Model R R Square Adjusted R Square Estimate Durbin-Watson

1 .364a .132 .082 .69177 1.062 a. Predictors: (Constant), x4, x3, x1, x2 b. Dependent Variable: Dependent

ANOVAb

Model Sum of Squares df Mean Square F Sig.

1 Regression 5.034 4 1.259 2.630 .042a

Residual 33.020 69 .479

Total 38.054 73 a. Predictors: (Constant), x4, x3, x1, x2 b. Dependent Variable: Y

Coefficientsa

Standardized Unstandardized Coefficients Coefficients

Model B Std. Error Beta t Sig.

1 (Constant) 1.915 .681 2.814 .006

x1 .470 .166 .328 2.841 .006

x2 .155 .159 .116 .975 .333

x3 .116 .177 .074 .657 .513

x4 -.071 .128 -.066 -.557 .579 a. Dependent Variable: Y