Impacts of Brand Related Attributes on Customer Buying Intention of Blackberry Smartphone Among Employees at Pt.Ekobumi Anugrah Makmur, the President Post and Pt

IMPACTS OF BRAND RELATED ATTRIBUTES ON CUSTOMER BUYING INTENTION OF BLACKBERRY SMARTPHONE AMONG EMPLOYEES AT PT.EKOBUMI ANUGRAH MAKMUR, THE PRESIDENT POST AND PT. TANJUNG LESUNG

Putri Anjatsari IDno. 014201000052

A skripsi presented to the Faculty of Business President University In partial fulfillment of the requirements for Bachelor Degree in Business Major in Management

January 2014

SKRIPSI ADVISOR

RECOMMENDATION LETTER

This skripsi entitled “Impacts of Brand Related Attributes on Customer Buying Intention of Blackberry Smartphone Among Employees at PT. Ekobumi Anugrah Makmur, The President Post, and PT. Tanjung Lesung” prepared and submitted by Putri Anjatsari in partial fulfillment of the requirements for the degree of Bachelor of Business Administration in the Faculty of Business has been reviewed and found to have satisfied the requirements for a skripsi fit to be examined. I therefore recommend this skripsi for Oral Defense.

Cikarang,Indonesia, 12February 2014

Acknowledged by, Recommended by,

Vinsensius Jajat Kristanto SE., MM., MBA. T. Manivasugen, M.B.A., D.I.S.M Head, Management Study Program Advisor

DECLARATION OF

ORIGINALITY

I declare that this skripsi, entitled “Impacts of Brand Related Attributes on Customer Buying Intention of Blackberry Smartphone Among Staffs at PT. Ekobumi Anugrah Makmur, The President Post, and PT. Tanjung Lesung” 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, 12 February 2014

Putri Anjatsari

PANELOF EXAMINERS

APPROVAL SHEET

The Panel of Examiners declare that the skripsi entitled “Impacts of Brand Related Attributes on Customer Buying Intention of Blackberry Smartphone Among Staffs at PT. Ekobumi Anugrah Makmur, The President Post, and PT. Tanjung Lesung” that was submitted by Putri Anjatsari majoring in Management from the Faculty of Business was assessed and approved to have passed the Oral Examinations on February 12, 2014.

Dra. Genoveva, MM Chair-Panel of Examiners

Vinsensius Jajat Kristanto SE., MM., MBA Examiner I

T. Manivasugen, M.B.A., D.I.S.M Examiner II

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ABSTRACT

The growth of communication business post globalization encouraged many telecommunication companies and manufacturers to come out with multiple forms of brands. The emergence of local and global companies‟ smartphone products led to immense competition between them. This condition led the brands to look for attributes to attract and retain customers. The current study aims to identify factors of brand related attributes which have significance impacts on the customer buying intentions of Blackberry Smartphone. The purpose of this study is to explore the key attributes of Blackberry Smartphone which have an impact on the customer purchase intention. The study measured the impact of extrinsic attributes like price, celebrity endorsement and prestige on the customer purchase intention. The study also measured the impact of intrinsic attributes like quality and physical appearance on customer purchase intention. The study used a structured questionnaire which was pilot tested followed by data collection and analysis of forty three Blackberry user. The finding of this study shows that quality has significant relationship with buying intention while the role of celebrity endorsement, price, physical appearance and prestige of Blackberry Smartphone was found to be insignificant. Key words: Brand Related Attributes, Quality, Celebrity endorsement, Price, Physical appearance, Prestige, Purchase Intention.

ACKNOWLEDGMENT

First of all, I would like to award the highest gratitude to God Almighty. It is believed that it is not by coincidence that I could finish and submit the skripsi within the time provided by University, for it is only by His kindness and grace to have such precious experiences during this skripsi period. He is the one who guides throughout this skripsi period. I should say thanks to Him for all of His blessing along the way of the skripsi period.

I would like to thank my lovely dad and mom, my younger brother for their love, affection and full supports during my study in the university.

I would like to extend my most profound gratitude and thanks to my kindest advisor T. Manivasugen, MBAfor all his time spent, efforts, stories shared, critical views and guidance during my process of writing and finishing the skripsi.

Special thanks also addressed to employees at PT. Ekobumi Anugrah Makmur, The President Post, and PT. Tanjung Lesung for their time and effort to fill my questionnaire.

I would like to take this opportunity to express my appreciation and gratitude to Marketing 2010 and Community of Love (COOL) for all things that made my university life cheerful and meaningful.

Finally, I would like to especially thank my beloved co-workers at PT. Ekobumi Anugrah Makmur especially to Andre W. Darmono, Kenny Kusumo, Shu Huang, Dhalia, Irene Yostina, Lilia Susanti, and Vonika Manurung that gave great supports, patience and constant encouragement during the process of finishing my skripsi. God Bless.

Putri Anjatsari

TABLE OF CONTENT

SKRIPSI ADVISOR RECOMMENDATION LETTER ...... i

DECLARATION OFORIGINALITY ...... ii

PANELOFEXAMINERS ...... iii

APPROVALSHEET ...... iii

ABSTRACT ...... iv

ACKNOWLEDGMENT ...... v

TABLE OF CONTENT ...... vi

LIST OF TABLES ...... x

LIST OF FIGURES ...... xii

CHAPTER 1INTRODUCTION ...... 1

1.1. Research Background ...... 1

1.2. Problem Identification ...... 7

1.3. Problem Statement ...... 8

1.4. Research Objectives ...... 8

1.5. Research Scope and Limitation ...... 9

1.5.1.Research Scope ...... 9

1.5.2. Research Limitation ...... 9

1.6. Definition of Terms ...... 10

1.7. Significance of The Study ...... 11

1.7.1.The Researcher ...... 11

1.7.2.RIM Blackberry Company ...... 11

1.7.3.The reader ...... 12

CHAPTER 2 LITERATURE REVIEW ...... 13

2.1. Theoretical Review ...... 13

2.1.1 Marketing ...... 13

2.1.2. Branding ...... 15

2.1.3. Quality ...... 18

2.1.4. Price ...... 21

2.1.5. Physical Appearance ...... 23

2.1.6. Celebrity Endorser ...... 23

2.1.7. Prestige ...... 27

2.1.8. Purchase Intention ...... 28

2.2. Previous Research ...... 29

2.3. Theoretical Framework ...... 31

2.4. Assumptions and hypothesis ...... 31

CHAPTER III METHODOLOGY ...... 33

3.1. Research Method ...... 33

3.1.1. Research Time and Place ...... 34

3.1.2. Research Framework ...... 34

3.2. Operation Definition ...... 36

3.3. Research Instrument ...... 38

3.3.1. Data Collection ...... 38

3.3.2. Measurement Scale and Data Analysis...... 39

3.4. Sampling Design ...... 42

3.4.1. Sample Size ...... 42

3.4.2. Margin of Error ...... 42

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3.4.3 Sampling Technique Applied ...... 42

3.5. Data Analysis ...... 43

3.5.1. Descriptive Statistic ...... 43

3.5.2. Statistical Tools ...... 43

CHAPTER IVANALYSIS OF DATA AND INTERPRETATION OFRESULTS ...... 48

4.1. Company Profile ...... 48

4.1.1. Research in Motion ...... 48

4.2. Data Analysis ...... 52

4.2.1. Descriptive Analysis ...... 52

4.2.2. Validity Test ...... 58

4.2.3. Reliability Statistics ...... 63

4.2.4. Multiple Regressions ...... 64

4.3. Interpretation of Results ...... 72

4.3.1. Price towards Customer Buying Intention of Blackberry Smartphone 72

4.3.2. Brand Endorser towards Customer Buying Intention of Blackberry Smartphone ...... 73

4.3.3. Quality towards Customer Buying Intention of Blackberry Smartphone ...... 73

4.3.4. Prestige towards Customer Buying Intention of Blackberry Smartphone ...... 74

4.3.5. Physical Appearance towards Customer Buying Intention of Blackberry Smartphone ...... 75

CHAPTER VCONCLUSION AND RECOMMENDATION ...... 76

5.1. General ...... 76

5.2. Conclusion ...... 76

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5.3. Recommendations ...... 77

REFERENCES ...... 81

Books ………………………………………………………………………….81

Journals ...... 81

Websites ...... 86

APPENDIX ...... 89

Appendix 1 Questionnaire ...... 89

Appendix 2 Anti Image Correlation table ...... 92

Appendix 3 Total variance Explained Table ...... 94

Appendix 4 Reliability for Each Variable ...... 94

Appendix 5 R-Table ...... 96

LIST OF TABLES

Table 3.1 Operational definition

Table 3.2 Relative Grading Systems for Each Dimension

Table 4.1 Descriptive Statistics for Price of Blackberry Smartphone

Table 4.2 Descriptive Statistics for Brand Endorser of Blackberry Smartphone

Table 4.3 Descriptive Statistics for Quality of Blackberry Smartphone

Table 4.4 Descriptive Statistics for Prestige of Blackberry Smartphone

Table 4.5 Descriptive Statistics for Physical Appearance of Blackberry Smartphone

Table 4.6 Descriptive Statistics for Customer Buying Intention of Blackberry Smartphone

Table 4.7 Pearson Test Validity for Product

Table 4.8 Pearson Validity Test for Celebrity Endorser

Table 4.9 Pearson Validity Test for Quality

Table 4.10 Pearson Validity Test for Prestige

Table 4.11 Pearson Validity Test for Physical Appearance

Table 4.12 Pearson Validity Test for Customer Buying Intention

Table 4.13 Validity Test R Compute Result

Table 4.14 Reliability Category Table

Table 4.5 Reliability Statistics Table

Table 4.16 Multicollinierity Test

Table 4.17 F Test Result – ANOVA

Table 4.18 T Test – Significance Value

Table 4.19 Significance Table

Table 4.20 Model Summaryb

LIST OF FIGURES

Figure 1.1 Global Device Penetrations Per Capita

Figure 1.2 Smartphone Ownership by age and income in US

Figure 1.3 Smartphone Customer Satisfaction Rate 2013

Figure 1.4 Worldwide smartphone operating system market share, based on unit sales to end users

Figure 1.5 Mobile Phone Sales Based on Operating System on Quartile II 2012

Figure 2.1 Theoretical Framework

Figure 3.1 Research Framework

Figure 4.1 Demographic Views (Gender)

Figure 4.2 Demographic Views (Age)

Figure 4.3 Demographic Views (Salary)

Figure 4.4 Demographic Views (Blackberry Type)

Figure 4.5 Histogram

Figure 4.6 Normal P-P Plot of Regression Standardized Residual

Figure 4.7 Scatterplot of Heteroskedasticity

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CHAPTER 1

INTRODUCTION

1.1. Research Background Nowadays mobile phone industry has been improved dramatically in terms of features, design, and technology used. The demand of the telecommunication industry for advanced mobile devices already answered by Blackberry Smartphone, Samsung, Apple, and other vendor. Smartphone is a device that has phone capability and able to performs some similar functions as the computer. It is capable of text messaging, camera, video recorder, e-mail, internet, e-book reader, push to talk, review and edit documents, global positioning system capability, and many other applications (myownbusiness.org, 2012).

Figure 1.1 Global Device Penetration Per Capita

Source: BII estimates, Gartner, IDC, Strategy Analytics, company fillings, World bank 2013

Seen from the historical data, by the end of 2013, global smartphone penetration will have exploded from 5% of the global population in 2009, to 22%. That's an increase of nearly 1.3 billion smartphones in four years. On average, there will be two smartphones for every nine people on earth, or 1.4 billion smartphones, by the end of 2013 (Heggestuen, 2013).

According to a Nielsen survey in January of more than 20,000 mobile customers in the US, the intensity of smartphone user was depended on the age and income of the user. While overall smartphone penetration stood at 48 percent in January, those in the 25-34 age group showed the greatest proportion of smartphone ownership, with 66 percent saying they had a smartphone.

In the same age group, 8 of 10 of those that had gotten a new device in the last three months chose a smartphone. Among those who chose a device in the last three months, more than half of those under 65 age group had chosen a smartphone. Other than age, Income also plays a significant role in smartphone ownership. When age and income are both taken into account, older subscribers with higher incomes are more likely to have a smartphone.

Figure 1.2 Smartphone Ownership by age and income in US

Source: Nielsen Company 2012

However, as the smartphone usage was increasing, the competition based on operating system and brand was also getting tougher. According to (jdpower.com, 2013) on its press release stated that RIM Blackberry was positioned with the lowest score of customer satisfaction level. Satisfaction was measured in several key factors such as performance, ease of operation, physical design, and features. Satisfaction remains relatively unchanged among traditional mobile phone customers, likely as a result of heightened awareness of advanced services available on smartphones and the lack on new device offerings with upgrade features set.

Figure 1.3 Smartphone Customer Satisfaction Rate 2013

Source: J.D. Power and Associates Reports 2013

Not only RIM Blackberry got the lowest satisfaction level among smartphone users, based on worldwide smartphone operating system market share statistic research done by Statista, while Samsung sales increased drastically and remained number one, Blackberry RIM‟s sales wasalso decreasing. Since Samsung was seriously entering smartphone market competition in 2010, RIM Blackberry sales was constantly decreasing(Egham, 2013).

Figure 1.4 Worldwide smartphone operating system market share, based on unit sales to end users

Source: Gardner, Inc 2013

On September 2013, Blackberry cut 40% of its workforce and sales were so poor that Blackberry had to write off $934m in the second quarter to account for the weakness. In the second quarter, Blackberry said it sold 3.7 million Blackberry smartphones. That compares with 7.4 million shipments in the same period of 2012. This sales declining has become a disappointment for its stakeholder (bbc.co.uk, 2013).

Figure 1.5 Mobile Phone Sales Based on Operating System on Quartile II 2012

Source: Detik.com 2013

In Indonesia, RIM Blackberry‟s market share was decreasing from 11,7% in 2011 into 5,2% in 2012. In addition, the market share of RIM Blackberry in Indonesia was getting worse with 70% declinationin 2013. According Tifanul Sembiring, minister of communication and information Indonesia, RIM Blackberry market share was declining because of the declining of its service quality on BBM application(Musofa, 2013).

Therefore, from the problem the researcher would like to know whether brand related attributes has impact on customer purchase intention of RIM Blackberry. The researcher would like to know is there any influence from perceived prestige, physical appearance, quality, price, and celebrity endorser on customer purchase intention of RIM Blackberry among employees at PT. Ekobumi Anugrah Makmur, The President Post, and PT. Tanjung Lesung head office, Jakarta.

1.2. Problem Identification From all of data and information about smartphone that shown above, it was showedthat the most smartphone user was come from the ages of 25-32 in US and EU. The researcher also found that the customer satisfaction level of Apple smartphone users was higher than RIM Blackberry which has lowest satisfaction level.

By the end quartile of 2013, vendors worldwide shipped 178 million Android smartphones, in which 40% of were Samsung devices. Apple shrank year-over- year from 19% in Q2 2012 to 14% in Q2 2013 even though the company‟s total iPhone shipments rose from 29 million to 32 million over the same period. Windows Phone showed some decent momentum on the quarter and its market share increased from 2.6% in Q2 2012 to 3.3% in Q2 2013 on shipments of 7.4 million devices BlackBerry‟s standing in the smartphone market continued to deteriorate, however, as its market share plunged from 5.2% to 2.7% and its shipments shrank from 8 million devices in Q2 2012 to 6.2 million in Q2 2013 (Reed, 2013)

Although the number of sales was decreasing worldwide, Blackberry user in Indonesia was 13.850.000 people, increasing 7,2 million people in 2013 compare to 5,7 million people on last year (Pitoyo, 2013). However, after Blackberry messenger application was released on android and ios, Blackberry sales in Indonesia was decreasing 50%. There are speculation that to enjoy BBM features, people are not obligated to buy Blackberry anymore since they were currently able to use it from their android and IOS (detik.com, 2013).

According to that problem, the researcher is going to research about the analysis of brand related attributes and its impact on customer buying intention of RIM Blackberry among customer with 20-40 age group which have the greatest proportion of smartphone ownership, with 100 percent saying they have a smartphone. This research will focus on employees at PT. Ekobumi Anugrah Makmur, The President Post, and PT. Tanjung Lesung head office, Jakarta.

1.3.Problem Statement The problem statements that are tested and evaluated in this study can beformulated in the form of questions as stated below:

1. Is there any impact between Price on customer purchase intention of RIM Blackberry among employees at PT. Ekobumi Anugrah Makmur, The President Post, and PT. Tanjung Lesung? 2. Is there any impact between Celebrity Endorser on customer purchase intention of RIM Blackberry among employees at PT. Ekobumi Anugrah Makmur, The President Post, and PT. Tanjung Lesung? 3. Is there any impact between Quality on customer purchase intention of RIM Blackberry among employees at PT. Ekobumi Anugrah Makmur, The President Post, and PT. Tanjung Lesung? 4. Is there any impact between Prestige on customer purchase intention of RIM Blackberry among employees at PT. Ekobumi Anugrah Makmur, The President Post, and PT. Tanjung Lesung? 5. Is there any impact between Physical Appearance on customer purchase intention of RIM Blackberry among employees at PT. Ekobumi Anugrah Makmur, The President Post, and PT. Tanjung Lesung? 6. What is significance factor from brand related attributes (Price, Brand Endorser, Quality, Physical Appearance, Prestige) that gives impact on customer purchase intention of RIM Blackberry partially?

1.4.Research Objectives 1. To know whether brand related attribute Price has impact simultaneously toward the customer purchase intention of RIM Blackberry among employees at PT. Ekobumi Anugrah Makmur, The President Post, and PT. Tanjung Lesung Headquarter office. 2. To know whether brand related attribute Brand Endorser has impact simultaneously toward the customer purchase intention of RIM Blackberry among employees at PT. Ekobumi Anugrah Makmur, The President Post, and PT. Tanjung Lesung Headquarter office.

3. To know whether brand related attribute Quality has impact simultaneously toward the customer purchase intention of RIM Blackberry among employees at PT. Ekobumi Anugrah Makmur, The President Post, and PT. Tanjung Lesung Headquarter office. 4. To know whether brand related attribute PhysicalAppearance has impact simultaneously toward the customer purchase intention of RIM Blackberry among employees at PT. Ekobumi Anugrah Makmur, The President Post, and PT. Tanjung Lesung Headquarter office. 5. To know whether brand related attribute Prestige has impact simultaneously toward the customer purchase intention of RIM Blackberry among employees at PT. Ekobumi Anugrah Makmur, The President Post, and PT. Tanjung Lesung Headquarter office. 6. To know what is the significance factor from brand related attributes that affect the customer purchase intention partially.

1.5. Research Scope and Limitation In this research the researcher is spread the questionnaire from November 22 to 25 2013 in PT. Ekobumi Anugrah Makmur, The President Post, and PT. Tanjung Lesung Headquarter office. The content of the questionnaire is based on brand related attributes theory.

1.5.1. Research Scope The scope of this research is RIM Blackberry User within the range of ages between 20-40 years old despite of genders.

1.5.2.Research Limitation Due to several reasons related to this study, the researcher makes some limitations such us:

1. The researcher limited it range of 43 population which is only focus at PT. Ekobumi Anugrah Makmur, The President Post, and PT. Tanjung Lesung Head Office Jakarta despite any gender.

2. The researcher gives questionnaire to PT. Ekobumi Anugrah Makmur, The President Post, and PT. Tanjung Lesung Head Office Jakarta employees who also use RIM Blackberry smartphone

3. Although there are other new theories about brand related attributes, the researcher uses Brand Related Attributes (Price, Physical Appearance, Quality, Celebrity Endorser, and Prestige). The researcher considers that those 5 brand related attributes from (Raturi, 2012) is the appropriate theory for this research.

1.6. Definition of Terms Mobile Phone: portable telephone device that does not require the use of landlines cable and utilize frequencies transmitted by cellular towers to connect the calls between two devices.

Smartphone: a cellular telephone with built in applications and internet access.

PDA (Personal Digital Assistant): powerful handheld computing devices without a keyboard but with a screen that reads words written or drawn on it pen like stylus.

OS (Operating System): it software that communicates with the hardware and allows programs to run. Operating system is comprised of system software or the fundamental files of computer that need to be boot up and function.

Mobile Operating System: operating system which created to be use and run only for mobile devices such as mobile phone, smartphone, and tablet.

Android: android operating system is mobile operating system that created and developed by Google and it used by several smartphone brands such as Samsung, HTC, and Motorola. Android operating system is based on the Open Linux Kernel which meaning that developer can modify and customize the OS for each phone.

PC (Personal Computer): Device with mostly used in daily for work and personal use. A typical of PC includes Monitor, Key board, system unit, and mouse.

Brand attributes: Also known as core values, brand attributes represent the essence of the brand. Brand attributes are a set of characteristics that identify the physical, character and personality traits of the brand, similar to the attributes that allow us to consistently identify individuals.

Customer Decision: customer decision is a process that customer takes before decided to buy a certain product. It takes several process such as costumer identify their needs, collect information, evaluate alternatives, and the last is make purchasing decision.

1.7.Significance of The Study This research is expected to give contribution in knowledge, theoretical and practical area for any parties:

1.7.1. The Researcher This research is has important meaning for the researcher. Beside for one of the requirement that researcher have to fulfill in order to get bachelor degree and to graduate from university, through this research also give chance for researcher to apply and implement what researcher have learned from the class into practical study. This research also gives researcher more knowledge and information about the development and situation of smartphone market in the world and Indonesia.

1.7.2. RIM Blackberry Company This research is expects to be able to give more contribution and additional information about the smartphone customer decision through analysis of brand related attributes for RIM Blackberry. Related Product attributes consist of six factors, there are quality, price, celebrity endorsement, physical appearance, prestige, purchase intention. This study also give information for RIM

Blackberrycompany about which factor of brand related attributes which gives significant effect to the customer buying intention of RIM Blackberry. So that through this study it can help RIM Blackberry company to have more understanding about their customer and to deliver more valued and benefits in order to achieve higher customer satisfaction of smartphone.

1.7.3. The reader Through this study the researcher hope that this research is able to give more information and knowledge for reader and as reference for other researcher to solve the problem that is related to analysis of marketing mix toward the smartphone customer decision.

CHAPTER 2

LITERATURE REVIEW

2.1.Theoretical Review

2.1.1 Marketing Todays many successful companies in this world have one thing in common. Those companies are focused and heavily committed to marketing. Those companies like apple and Samsung are share a passion for understanding and satisfying their customers needs and wants. Those companies also creating value through long relationship with their own customers by always satisfy their customers with high quality of products or services and also given good values.

In a simple definition marketing can be defined as an activity with aim or purpose to fulfill people needs and wants. Needs is something that have eternally exist inside of all of human body and its something that each human in this world have to fulfill it. Whereas wants is something that human and people willing to pay for a certain amount to get a certain pleasure of particular products or services which it‟s not really necessary and important as needs to be fulfill.

According to the (Kotler & Armstrong, 2010)about the definition of needs and wants are:

“Needs is states of felt deprivation which includes basic physical needs for food, clothing, warmth, and safety; social needs for belonging and affection; and individual needs for knowledge and self-expression”.

“Wants are the form of human needs take as they are shaped by culture and individual personality, Wants also shaped by one’s society and are describe in terms of objects that will satisfy needs”.

Here are some definition of marketing according from some different analysis and books:

According to the (Kotler & Armstrong, 2012) the definition of marketing is:

“Marketing is the process by which companies create value for customers and build strong customer relationship in order to capture value from customers in return.” According to (Keegan & Green, 2005)the definition of marketing is:

“Marketing can be described as one if the functional areas of business, distinct from finance and operations and it also can be thought of as one of the activities that along with product design, manufacturing, and transportation logistics, comprised a firm’s value chain.” According to the Kotler and Keller (2012) marketing definition is:

“Marketing is about identifying and meeting human and social needs, one of the shortest good definitions of marketing is meeting needs profitably.” The American Marketing Associations define marketing as:

“Marketing is the activity, set of institutions, and process of creating, communicating, delivering, and exchanging offering that have value for customers, clients, partners, and society at large.” Based on all of those marketing definition from above the researcher conclude that marketing is activities that delivering values to in order to satisfy customers‟ needs, wants, and make a good relationships between companies or organization through products or services that provided by organization or companies.

According to the Drucker (2003) says that marketing aim or purpose is:

“There will always, one can assume, be need for some selling. But the aim of marketing is to make selling superfluous. The aim of marketing is to know and understand the customers so well that the product or service fits him and sells itself. Ideally, marketing should result in a customer who is ready to buy. All that should be needed then is to make the product or service available.” From all of those definitions of marketing, the researcher simply conclude that marketing is the process of selling product or service to the customer by also delivering value and keep a good relation ship between firm or company and customer. By having a deep understanding of marketing definition, firm or company will be able to giving product and services that meet what customer demand and gain a great customer satisfaction.

2.1.2. Branding Brand is name, term, sign, symbol, or arrangement or combination from those things which is purposed to identify products or services produced so become different from products or services produced by competitors (Rangkuti, 2004).

The American Marketing Association defines a brand as:

“A name, term, design, symbol, or any other feature that identifies one seller’s good or service as distinct from those of other sellers. The legal term for brand is trademark. A brand may identify one item, a family of items, or all items of that seller. If used for the firm as a whole, the preferred term is trade name.” Aaker on (Patrik, 2007) defined brand as:

“Brands are genuine assets and, like other forms of asset, they can appreciate considerable as a result of careful management and development” Patrik (2007) defined brand as:

“Brands can build up unbelievably strong loyalty, which value should not be underestimated and people are strongly influenced by the aspiration factor of a brand; they are looking for a higher level of customer value not only the physical product itself”. Kapferer (2008) and Wheeler (2000) on (Raturi, 2012) explained that brand performs two functions: gives identification to a product and thus distinguishes product from each other and to indicate the origin of the product. Brand is a promise, big idea, reputation and expectation that resides in customer‟s mind about the product and/or the company. With the help of brand, a product will be able to make emotional connections that will results in customers buying the product and become loyal to the product.

According to (Eisenberg, 2006), branding is the sub-total of all the “experiences” customers have with their business. For successful branding marketers need to understand the principles of Ivan Pavlov as his brother Jeffrey and himself discussed in his book Waiting For Your Cat to Bark. Branding work needs:

1. Consistency. Pavlov never offered food without ringing the bell and never rang the bell without offering food.

2. Frequency. The bell rang several times a day, day after day.

3. Anchoring. Pavlov tied the experiment to something about which the dog was emotional. Frequency and consistency create branding only when the message is associated with an emotional anchor. This is the most difficult and essential element to get correct.

In his book, (Rangkuti, 2004) also defined brand in four definitions such as:

1. Brand name which is part of brand that can be articulated. E.g. Kaskus, vivanews, Ceriwis, etc. 2. Brand mark which is part of brand that can be recognized but can not be articulated like symbol, typography, or special color mix E.g. Apple logo, Windows logo, etc. 3. Trade mark which is brand or part of brand that protected by law because of the ability to produce something which is really special and unconventional. Trade mark protects a company or organization with the privilege to use the brand. 4. Copyright which is a privilege which protected by legislation to produce, publish, and sell a literary, musical or artistic work.

Thus, brand is a form of commitment from the seller which consistently brings out features, benefits, and certain services to buyers. Best brand will guarantee quality. Putting on a name or brand to a product will be much better for not only using a symbol, because brand has six level of understanding (Rangkuti, 2004, p.3-4):

1. Attribute Every brand has own attribute. The attribute is needed to be organized and created so that the customer may know clearly about any attribute which is being carried out by a product. For example, BMW 7 series is a car brand

which is manufactured with high quality, safe, prestigious, expensive, and habitually being used by senior executives of multinational company. 2. Benefit Beside attribute, brand also has several benefits. Customer doesn‟t buy attribute, they buy benefits. Producer should be able to interpret the attribute to be a functional benefit or emotional benefit. For instance, safe attribute of BMW can be interpreted as a functional benefit because the user doesn‟t need to change any brake function and also air bag protection. The functional benefit can be interpreted to emotional benefit that is during driving the BMW 7 series, a customer feels safe and pleasure. In addition, attributes should be able to be deciphered as a benefit which can be felt directly by the customer. 3. Value Brand also can state a value for producer. Brand which is categorized as high valuable brand will be much more demanded by customers as high class brand, so that the brand can reflect who the brand user is. 4. Culture Brand also represents particular culture. For example, Mercedes represents German‟s culture which is well-organized, efficient, and well-known by high quality products. 5. Identity Brand also has identity which is the identity for the users. So, expected by using the brand, the user‟s personality will be reflected along with the brand which is used. 6. User Brand also shows who the users of the brand itself. That is why marketers always use the analogy of famous or well-known people as the ambassador. For example, success people always use BMW or Mercedes Benz as their vehicle.

Attributes are descriptive characteristics that characterize a product or service- what a customer thinks about a product or service is or has and what is involved in its purchase or consumption Keller (1993) on (Wang & Tang, 2009).

Keller (2003) on (Raturi, 2012) mentioned that there are two types of brand attributes: intrinsic and extrinsic.

1. Intrinsic brand attributes are attributes which are related to the products and measurable. They are related to products‟ physical composition and service request, distinguished by branded products‟ essential ingredients and features which determine the nature and level of product performance. The intrinsic attributes are flavor, color, texture, quality, style, design, and features of product. 2. Extrinsic brand attributes are external aspects of products or services that related to its purchase or consumption. Keller classified them as packaging, price information, brans image, user imagery and usage imagery.

2.1.3. Quality The American Marketing Associations (2013) defines product quality as:

1. The measure of any particular attribute a product has (what flavor, how much, how lasting). 2. The measure of the intended customer's reactions to that attribute, how it is liked, its affect. On manufactured goods, the quality assessment is most often made on the quality of the product's physical features as created by the manufacturing process; the judgments are made by managers using proprietary standards. 3. Product quality may also be related to price, in which any particular lower price item might be said to have good quality for the money; this use equates product quality with product value. Production system design decisions, including plant flexibility and hence build complexity can impact quality. Product complexity can be defined as component interaction, the number of components involved and the degree of novelty. Nevertheless, building more models in a plant, especially very different models,

18 will most likely increase plant build complexity. Complexity is not the same as variety because variety does not comprehend the degree of commonality between products. Therefore, component sharing can in some cases damage product quality(Huang & Inman, 2009).

Pil and Holweg (2004) on (Huang & Inman, 2009) differentiate between external variety which is offered to the customer and internal variety which is involved in creating the product. To measure external variety, they count all the possible ways offered to a customer. For the measurement they follow MacDuffie et al. (1996) and observe that the two dimensions of variety are independent of each other. However, they do not investigate the impact of product variety on quality.

Product‟s high performance quality is often searched by customers in order to get good value for their money in a purchase situation. A product‟s performance quality is defined as the perceived superiority and excellence of the product‟s performance when compared with competing alternatives. As a result, product quality is recognized as an important competitive factor for companies, which can increase their market share and profitability (Mugge & Schoormans, 2012).

Quality means conformance to design specifications or the reliability of internal processes, even though many customers do not find these processes meaningful Feigenbaum (1991), Juran (1992), Shewhart (1986) on (Golder, Mitra, & Moorman, 2012). They also classified three-part process view of quality consisting of the quality production process, the quality experience process, and the quality evaluation process. Firms and customers can participate in each quality process. However, quality production is primarily the domain of firms; quality evaluation is primarily the domain of customers; and quality experience is the domain in which firms and customers interact.

Product quality is defined as the degree of how well the product specification fits the customer‟s expectation. If people think the product specification fits their need, they will be more likely to think the transaction is worthy. Product quality is supposed to fulfill the basic needs such as physiological needs and security needs.

For customers with lower consumption frequency, they still value product quality more than service and contextual experience (Yu & Fang, 2009).

In their research on cellular manufacturing, they found that product quality can be improved by having a better product design and features(Cao, Defersha, & Chen, 2009). This statement is supported by Garvin (1938) on (Millson & Wilemon, 2008), in which he explained that Quality improvements are realized when a technology investment leads to the creation of new products, or new features for existing products, which directly increase human desire to consume those products. Garvin also presents the following definition of quality as:

"the capability of a product or service to knowingly satisfy those preconceived composite wants of the user(s) that are intelligibly related to characteristics of performance or appearance and do not cause covert or overt reaction by other people."

Garvin supplements definition above by identifying eight dimensions of quality: performance, features, reliability, durability, conformance, serviceability, aesthetics, and perceived quality (Millson & Wilemon, 2008).

1. Performance. The execution of an action, the accomplishment of a given task measured against present known standards of accuracy, completeness, cost, and speed (businessdictionary.com, 2014). 2. Features. A fact or technical specification about a product (AMA, 2014). 3. Reliability. Probability of failure or malfunctioning of a product within a specific time period. Expressed in terms of Mean Time Before Failure (MTBF) Ahire et al. (1996), Curkovic et al. (1999), Garvin (1987) on (Lakhal & Pasin, 2008) 4. Durability. Life span conventionally defined as the time it takes for a physical or chemical property to attain a specific threshold called the end of life criterion Ahire et al. (1996), Curkovic et al. (1999), Garvin (1987) on (Lakhal & Pasin, 2008)

5. Conformance. Chemistryany of the spatial arrangements which the atoms in a molecule may adopt and freely convert between, especially by rotation about individual single bonds (AMA, 2014). 6. Serviceability. Degree to which the servicing of an item can be accomplished with given resources and within a specified timeframe (AMA, 2014). 7. Aesthetics. The branch of philosophy which deals with questions of beauty and artistic taste (AMA, 2014). 8. Perceived quality. Consumer‟s judgment a product‟s overall excellence or superiority (Zeithaml, 2014)

2.1.4.Price The American Marketing Associations (2013) defined Price as as:

“The formal ratio that indicates the quantities of money goods or services needed to acquire a given quantity of goods or service”. “Price discount is a stated reduction in the price of a product generally offered by the manufacturer and printed directly on the product package”. Price is one of the variables in the marketing mix which plays critical roles in the marketing process. Price of product of service has to be balanced with benefits and advantages that offered by company. Cause of that reason, company or marketer has to be careful on setting the price of product or service which balanced with value and benefit that customer can gain. According to Kotler (2003) Marketing Management price is:

“Price is the one element of the marketing mix that produces revenue; the other elements produce costs. Price is the easiest marketing mix element to adjust; product features, channels, and even promotion take more time. Price also communicates market the company’s intended value positioning of its product or brand. In traditionally price has operated as the major determinant of buyer choice”. In order to set the right price for their product or service, company or marketers follow a several steps that assisting them on setting the price of product or

21 services. According to Philip Kotler (2003) the process of setting price of product or service taking several steps as follow:

1. Selecting the pricing objective

2. Determining Demand

3. Estimating Cost

4. Analyzing competitors costs, price, and offers.

5. Selecting a pricing method

6. Selecting the final price

According to Anderson (2005); Fagnani (2001); and Martin (2008) on (Hamilton & Chernev, 2013), Customer decisions are not influenced not only by a retailer‟s actual prices, but also by customer perceptions of the retailer‟s price image.

Selling prices are more influenced by the change in aspects that are related to the benefits of the product; whereas buying prices are more affected by the change in expenditure-related aspects of it (Irmak, Wakslak, & trope, 2013).

When customers perceive obtainment of more benefit, their value perception will be higher. Equally, customers who spending less money when they buy the product; they have higher price/ value consciousness Zeithaml, (1988) on (Chen, 2008).

Private label shoppers are more likely to be price sensitive than other customers. Therefore, as customers spend less money on gaining higher quality product, their price consciousness and purchase intention normally will improve. When the product price increases, customers‟ perceived risks of the price and value also increase Sethuraman and Cole (1999) on (Chen, 2008).

2.1.5. Physical Appearance On his journal, Yu Xin Explains The appearance design is one of the critical factors in the successful marketing of the consumptive products used in current society daily lives. He elaborates that a design should exhibit the performance of products not only in quality and productivity but also in novel and good-looking appearance. Therefore, the appearance design for the consumptive products used in our daily lives has become one of the critical factors in successful marketing(Wang Y. X., 2011).

Product appearance is one of the cues that customers use to perform their perception of products‟ performance quality (Kirmani and Wright 1989, Dawar and Parker 1994 on (Mugge & Schoormans, 2012)).

Product appearance is considered to be a critical determinant of customers‟ evaluations of products (Bloch 1995, Crilly et al. 2004 on (Mugge & Schoormans, 2012)).

A product may be preferred over others merely because it is aesthetically pleasing and/or because its appearance elicits specific associations (e.g. luxury, sportiness, cuteness). Moreover, product appearance may serve a more functional role. Based on the appearance of a product, customers make associations about its functional attributes, such as performance quality,ease of use, or safety for their purchase consideration (Mugge & Schoormans, 2012).

2.1.6. Celebrity Endorser The use of a celebrity in advertising is prevalent. It led to more favorable ad ratings and more positive product evaluations. There are four types of endorser (celebrity, CEO, expert, and typical customer) and in comparison with other endorser types, the celebrity endorser scored particularly well on dimensions such as trustworthiness, believability, persuasiveness, and likeability(Till & Shimp, 1998).

Celebrity endorsers are media favorites due to their mass appeal. Even in the direst circumstances, celebrities usually can find a forum to express their opinions following a negative event. The reaction of a celebrity to the announcement of the negative event can mitigate the impact it may have on customers‟ opinion about the endorser or the endorsed brand(Carrillat, D'astous, & Lazure, 2013).

According to (Carrillat, D'astous, & Lazure, 2013) brand endorsement or spokesperson is a marketing communication strategy that brands commonly use. Brands elect to be endorsed by famous people to benefit from the several advantages that celebrity endorsement may bring about, notably:

 Decrease in competitors‟ stock market value in some extreme cases (Mathur, kMathur, and Rangan, 1998)  Enhanced attention from the customer audience Erdogan and Baker (1999) on (Carrillat, D'astous, & Lazure, 2013)  Better recognition of the brand name Premeaux (2005) on (Carrillat, D'astous, & Lazure, 2013)  Better memory of advertising messages Misra and Beatty (1990) on (Carrillat, D'astous, & Lazure, 2013)  More favorable brand evaluations Atkin and Block (1983); Silvera and Austad (2004); Tripp, Jensen, and Carlson, (1994) on (Carrillat, D'astous, & Lazure, 2013)  More positive word-of-mouth Bush, Martin, and Bush, (2004) on (Carrillat, D'astous, & Lazure, 2013).  The opportunity to develop a distinct and credible brand personality Kamins (1990); Ohanian (1990) on (Carrillat, D'astous, & Lazure, 2013)

G. McCracken (1989) on (Carrillat, D'astous, & Lazure, 2013)wrote that a celebrity is an entity characterized by a set of meanings that are inferred from a number of attributes such as gender, age, social class, personality, life style, and past experiences.McCracken‟s model implies that the benefits that brands may gain from celebrity endorsement are likely to depend on the transfer of an appropriate set of meanings. Consequently, brands should choosecelebrity

24 endorsers who carry meanings that they want to be associated with. Interestingly, the process also can be reversed as the brand‟s meanings may be transferred to the celebrity Till (2001) on (Carrillat, D'astous, & Lazure, 2013).

The effectiveness of celebrity endorsement also can be understood through customers‟ need to identify themselves with admired persons, because customers are likely to adjust their brand preferences accordingly (Carlson & Donavan, 2008)

Theresults from this research showed that acelebrity who is moderately incongruentwith the endorsed product can lead to stronger purchase intentions than an extremely congruent endorser. This is especially true when customer involvement with the product category is high. In other words, matchup effects are more pronounced when customers are motivated to process the stimuli in greater depth (Lee & Thorson, 2008)

When such negative events become the focus of media attention, the consequent publicity may have a disastrous impact not only on customers‟ opinions of the endorser but on their opinions of the brand as well Erdogan, Baker, and Tagg, (2001); Till and Shimp(1998) on (Carrillat, D'astous, & Lazure, 2013). When customers saw an ad featuring a celebrityendorser and were informed that the endorser was involved in some negative event (in this case, drug charges), their perception of the advertised product was significantly less favorable than when they did not know about the event (White, Goddard, & Wilbur, 2009).

Companies invest large sums of money to align their brands and themselves with endorsers. Such endorsers are seen as dynamic with both attractive and likeable and companies plan that these qualities are transferred to products via marketing communication activities. Moreover, because of their fame, celebrities serve not only to create and maintain attention, but also to achieve high recall rates for marketing communication messages in today's highly cluttered environments (Erdogan, 1999).

In a market of high growth and intense competition, celebrity endorsement is one of the most common strategies for a brand to gain awareness. A determination of how customers embrace celebrities as brand endorsers and the ensuing effects on brand evaluations will be of great value to marketers who hope to target this desirable customer segment. But when a celebrity endorses multiple products and brands, some negative evaluation (e.g., doubting the integrity of the celebrity) may occur. For instance, if a celebrity endorses many products and brands, the negative effect may dominate, causing over-endorsement effects (Hung, Chan, & Tse, 2011).

Previous research has shown that celebrity endorsement can help create a positive effect on the customer‟s brand awareness, brand trust, brand preference, and purchase intention. These endorser effects are attributed to the celebrities‟ influence and their ability to transfer their values onto the brands they endorse. Agrawal and Kamakura (1995), Hoeke, and Moe (1989), Ohanian (1991) on (Huang & Inman, 2009).

Three main processes as key explanations for endorser effects according to Mittelstaedt, Riesz, and Burns, (2000) on (Hung, Chan, & Tse, 2011):

1. Source credibilitystates that, when a communication source has particular expertise in a topic of interest, the expertise equips the source with authority and believability so that communication from the source will be regarded as trustworthy or credible(Hung, Chan, & Tse, 2011). 2. Affect transferrefers to the lateral process through which celebrities improve brand awareness and brand familiarity. When a celebrity endorses a brand, the customer will pay more attention to the endorsed brand, thereby improving its awareness and attributing it with a positive image. (Chan, Hung, Tse, & Tse, 2008) were reported that celebrity appeal was the most commonly used appeal that surpasses even sexual appeal.

3. With image congruity, customers subscribe to the values the celebrity possesses Mathur, Mathur, and Rangan, (1997) on (Hung, Chan, & Tse, 2011).

To increase customer‟s purchase intention, more retailers and are gradually changing their intrinsic characteristic such as the creation of added value for money, image building, providing better or equal quality, innovation, and unique products (Anselmsson, Johansson, Maranon, & Persson, 2008).

2.1.7. Prestige What makes a brand is highly valued is not only because of the quality and service, but also mainly the experience of elegance. Memorable experience becomes one of the major determinants of customer perceived value (Yu & Fang, 2009).

Prestige is a phenomenon that certain segments, like young people, tune into, but may be less significant for the vast market. Through the prestige that accompanies global market. If a brand is perceived to be global, that creates value in the mind of customers. Most of the value creation is through the fact that customers ascribe products that are global to be of good quality (Yu L. , 2003).

Prestige brand concepts are more abstract than functional brand concepts, allowing prestige brands to accommodate a wider range of products that share few physical features A prestige brand, such as Rolex, can be successful launching distant extensions, such as scarves and neckties, because customers are able to use the concept of “prestige” to connect the brand and the extension (Monga & John, 2010).

When customers in other parts of the world use the brand, customers may perceive the brand as signaling higher prestige. Global brands often advertise their worldwide availability and acceptance since perceived globalness may reflect a high worldwide demand for superior quality brand. Quality and prestige also may enhance brand preference (Özsomer, 2012)

2.1.8. Purchase Intention Kotler (2000) on (Raturi, 2012) defined purchase intention as an attempt to buy a product. Purchase intention always arise after customer perceived value and perceived benefit.

According to Yu (2007) on (Chen, 2008), customers have three diverse intentions such as:

1. Prior planned purchasing Customers, who highly engage in search processes, usually will make a plan and ist before they go to stores because they think such behaviour will increase the effectiveness of their endeavour. Additionally, the motivation could make them attach value to previous plans that allow them to acquire more benefits efficiently during their shopping, such as preparing lists and coupons Putrevu and Lord, (2001) on (Chen, 2008). 2. Partial Planned Purchasing Any purchase condition can be an important factor of searching information, especially highly interesting in purchase decisions. However, if they would like to buy a more familiar product, their decisions would just depend on the product promotion, which leads to a lower involved decision (Chen, 2008). 3. Unplanned Purchasing Beatty and Ferrell (1998) on (Chen, 2008) define unplanned purchasing as goods for which the buying decisions were made in the shop and not before entering the shop. Moreover, Keller (2001) on (Chen, 2008) also provides unplanned purchasing as a rapid and urgent purchase with no pre-purchasing intentions either to buy a particular good or to perform a particular purchasing task .

Intention is assumed to capture the motivational variables that influence a behavior. Theyare indications of how hard people are willing to perform the behavior. In addition, the stronger the intention to engage in a behavior, the more likely must be its performance(Yulihasri, Islam, & Daud, 2011)

Both Zeithaml (1988) and Ghosh (1990) on (Chen, 2008)give a result that the higher quality consciousness customers have, the higher purchase intention customers would have. They also find customers do have doubt about low-price store brand products, especially in terms of quality problems. Therefore, quality consciousness and purchase intention are relative and positive. Also, according to Lichtenstein et al (1993) and Sudhir and Talukdar (2004) on (Chen, 2008)studies, both of them provide that customers indeed have some doubts about the quality of low-price store brand products, and then reduce their purchase intention.

2.2.Previous Research The previous research about the impact of brand related attributes on customer buying decision has been made by Sushil Raturi in 2012. The study measured the impact of brand related attributes like price, celebrity endorsement and prestige on the customer purchase intention of private and national brand apparel. The study she conducted was also measured the impact of intrinsic attributes like quality, physical appearance on customer purchase intention. Sushil Raturi used a structured questionnaire which was pilot tested followed by data collection and analysis of one thousand customers. The finding of the study shown that quality, price, physical appearance and prestige of National Brand have significant relationship with purchase intention while the role of celebrity endorsement was found to be insignificant. For the private labels, the finding of this study shown that Price and celebrity endorsement are the extrinsic attributes of private label which have Significance relationship with purchase intention while in the intrinsic attributes physical appearance was found to have significant relationship with customer purchase intention. The quality and perceived prestige were insignificant in affecting purchase intention of customer(Raturi, 2012).

Other research about the impact of brand related attributes on customer buying intention was done by Samanta Hogan, Jenni Romaniuk, Margaret Faulkner in 2012. On their research, they present a new classification system for brand attributes, which was based on the purpose of the attributes for customer.

They differentiated brand attributes into category entry attributes, functional attributes, differentiating attributes, and identification attributes(Hogan, Romaniuk, & Faulkner, 2012).

Previous research about the impact of brand related attributes on purchase intention of customers was also done by Imran Khan, Tauqir Ahmad Ghauri, and Salman Majeed with title “The impact of brand related attributes on purchase intention of customers. A study about the customers of Punjab, Pakistan”. Their research concentrates on demographics attributes impact on purchase intention of customers and identify that brand knowledge and brand advertisement has same impact on both female and male. Behavioral intention, past experience and purchase intention was high in female then male customer. But male customers had stronger brand relationship then female customers. Behavioral intention and purchase intention of upper Punjab employees is high, and the impact of advertisement and knowledge about brand increases as customer age increase. All the brand related factors on their research shown positive relationship with purchase intention of customers (Khan, Ghauri, & Majeed, 2012).

2.3. Theoretical Framework Figure 2.1 Theoretical Framework

Price

Celebrity Endorser

Purchase intention Quality

Prestige

Physical appearance

Source: Keller (2003) on (Raturi, 2012)

2.4. Assumptions and hypothesis According to what have been researcher states on the statement of problems above in this study, the researcher takes hyposthesis as following:

 H0.1: Brand related attributes of Price has no significant impact on the customer buying intention of Blackberry Smartphone.

H1.1: Brand related attributes of Price has a significant impact on the customer buying intention of Blackberry Smartphone.

 H0.2: Brand related attributes of Celebrity Endorser has no significant impact on the customer buying intention of Blackberry Smartphone.

H1.2: Brand related attributes of Celebrity Endorser has a significant impact on the customer buying intention of Blackberry Smartphone.

 H0.3: Brand related attributes of Quality has no significant impact on the customer buying intention of Blackberry Smartphone.

H1.3: Brand related attributes of Quality has a significant impact on the customer buying intention of Blackberry Smartphone.

 H0.4: Brand related attributes of Prestige has no significant impact on the customer buying intention of Blackberry Smartphone.

H1.4: Brand related attributes of Prestige has a significant impact on the customer buying intention of Blackberry Smartphone.

 H0.5: Brand related attributes of Physical appearance has no significant impact on the customer buying intention of Blackberry Smartphone.

H1.5: Brand related attributes of Physical appearance has a significant impact on the customer buying intention of Blackberry Smartphone.

CHAPTER III

METHODOLOGY

In this chapter of study presents the research method and process in which the researcher used and implement in the study. It involves such process of investigation, sampling scheme, selection of respondents, the sets of survey questionnaire, validation and reliability check process, statistical application, SPSS test, and process of gathering data and information.

3.1. Research Method In the process of making this research, there are two method or ways which different and distinguish to each other‟s; there are quantitative and qualitative method. The main difference thing between quantitative and qualitative is quantitative method is more focused on the number and utilizing of statistical tools, on the other side qualitative method is more concern on the comparison and usage of many theories from various of sources. However both of the methods have it own advantages and disadvantages.

According to Render, Stair, JR, and Mich. Hanna (2009) quantitative analysis is:

“Quantitative Analysis is the scientific approach to managerial decision making. Whim, emotions, and guesswork are not part of the quantitative analysis approach” A quantitative method or approach is often being used with aim to verify and prove existing theories or test hypothesis developed based from the previous research or study. In the other side qualitative method is require its user to have a deeper understanding of the study problem, collecting, analyzing and interpreting

33 that cannot be expressed in numbers. According to Denzin and Lincoln (2005) qualitative research or method is

“Qualitative research involves an interpretive and naturalistic approach, which means that qualitative research study things in their natural settings, attempting to make sense of or to interpret phenomena in terms of the meanings people bring to them” Qualitative method is often used with aim to gain understanding of underlying reasons and motivations, to provide insights into the setting of a problem, generating idea or hypotheses for later or future research, and the last is to uncover prevalent trends in thought and opinion. However in this researcher, the researcher decided to choose quantitative method or research to conduct this study.

3.1.1.Research Time and Place The research was conducted from October 2013 until early January 2014. Questionnaires have been spread through hardcopy distribution. The questionnaires distributions started from 12th December 2014 until 10th January 2014.

3.1.2.Research Framework In this section, researcher will explain about the steps to do in the research. It is started from statement of problem. Then, the theory related to the topic is cited to strengthen and support the statement of problem. After the theory is found, the pre-test questionnaire is constructed using the theory as the basic and the sample collection will be used for validity and reliability test. In order to do the validity and reliability test, the researcher uses Statistical Products and Solution Service (SPSS) version 20. At the end, only the valid and reliable statements will be used for the real questionnaire.

Figure 3.1 Research Framework

Statement of Problem

Literature Review

Pre-test Questionnaire

No No Valid?

Reliable?

Questionnaire

Data Gathering

Data Analysis SPSS 20.0 Microsoft Excel 2010 Conclusion

Source: Constructed by researcher

3.2. Operation Definition Variables Indicators Journals Price a)Blackberry has a reasonable (Irmak, Wakslak, & price, so purchasing Blackberry is a trope, 2013) good deal b)Blackberry‟s price is more (Irmak, Wakslak, & competitive than other competitors‟ trope, 2013) brand c)Blackberry‟s price is worth with (Irmak, Wakslak, & its quality and value trope, 2013) d)I buy Blackberry because it is (Irmak, Wakslak, & cheaper than other similar category trope, 2013) smartphones Brand a) I know Annisa Pohan as (Carrillat, D'astous, & Endorser Blackberry Endorser in Indonesia Lazure, 2013) b) I like Blackberry Endorser (Ugla, 2008) Indonesia c) The celebrity can represent (Ugla, 2008) Blackberry very well d) I associate the celebrity directly (Ugla, 2008) with the quality and performance of Blackberry e) I choose Blackberry because of (Carrillat, D'astous, & the celebrity endorser Lazure, 2013) Quality a) Blackberry‟s component quality (Golder, Mitra, & is better than other smartphone Moorman, 2012) b) I trust Blackberry‟s quality (Golder, Mitra, & Moorman, 2012) c) Blackberry‟s applications are (Golder, Mitra, & good and easy to use Moorman, 2012) d) Blackberry has high quality (Golder, Mitra,

component (product) &Moorman, 2012) e) Blackberry has a good product (Golder, Mitra, & design Moorman, 2012) f) Blackberry‟s packaging is nice (Golder, Mitra, & and special Moorman, 2012) Prestige a) Blackberry brand is very (Özsomer, 2012) prestigious b) Blackberry brand is an upscale (Özsomer, 2012) brand c) Blackberry has a high status (Özsomer, 2012) among other brands Physical a) Blackberry‟s shape and style is (Mugge & Appearance easy to handle Schoormans, 2012) b) I like Blackberry‟s color (Mugge & Schoormans, 2012) c) Blackberry design is special and (Mugge & different than other smartphones Schoormans, 2012) Customer a) I plan to upgrade my current (Carrillat, D'astous, & Buying Blackberry with a better version Lazure, 2013) Intention next year b) I intend to buy Blackberry again (Carrillat, D'astous, & if my current Blackberry is broken Lazure, 2013) or lost c) I think Blackberry is worth (Carrillat, D'astous, & buying Lazure, 2013) d) I am willing to recommend my (Carrillat, D'astous, & friends to buy Blackberry Lazure, 2013) e) Blackberry‟s Brand endorser (Carrillat, D'astous, & influenced my intention to purchase Lazure, 2013) a Blackberry Device

3.3. Research Instrument

3.3.1. Data Collection In this study the researcher use two sources to collect data and information. Those are primary data and secondary data. Primary data is data which consists all the information that the researcher needs for conduct the study; it collected and gathered throughout questionnaire that given to the third parties. On the other hand secondary data is information that collected and gathered by the researcher for conduct the study; the process of gathering secondary data are from internet, books, or any other resources that can be used for this study purpose.In order to produce accurate, valid and reliable data, the researcher needs to do an appropriate data collection process. The method of data collection to conduct this study or research is consists of:

3.3.1.1 Primary data The method that the researcher used to collect and gathered primary data is by using survey method in which the researcher distribute and spread questionnaire to third parties who qualified and fulfill the requirement that researcher set for to be respondent in this study.

The questionnaire is designed and constructed by the researcher with guidance from previous research. The questionnaire is consists of two part which first part is consist of questions that asked related to respondent profile or demographic status. The second part is consists of statements that represent the seven independent variable of Brand Related Attributes (Price, Physical Appearance, Quality, Celebrity Endorser, Prestige) and one dependent variable (Customer Buying Intention). The questionnaire is print and copy in the form of papers in which distributed to all students in President University despite of major, batch and gender.

3.3.1.2 Secondary data According to (Malhotra N. K., 2012) secondary data is:

“data collected for some purpose other than the problem at had”. In this studythe researcher collect and get the secondary data from some of thesesources in internet such as the survey data from (IDC Analysis the future,Gartner & J.D Power and Associates).

3.3.2. Measurement Scale and Data Analysis

3.3.2.1 Measurement Scale The Likert Scale was developed by Rensis Likert. It is the most frequently used variation of the summed rating scale. Summed rating scales consist of statements that express either a favorable or an unfavorable attitude toward the object of interests. 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 Schindler (2006).

In this research, data is interpreted using five-Likert Scale (Maholtra, 2012) as the same as the basis for the interpretation of the result of the compute data where the boundary of numeral and option includes:

Table 3.2 Relative Grading Systems for Each Dimension

Relative Grading Statement Score Strongly Agree 5 Agree 4 Neutral (Neither Disagree nor Agree) 3 Disagree 2 Strongly Disagree 1 Source: (Maholtra, 2012)

3.3.2.2 Data Analysis Statistical Package for Social Science (SPSS) V. 20.0 Refers to the free library by Farlex about Statistical Package for Social Science (SPSS) is the most widely program or software that used toanalyze data; for example basic statistical procedures such as frequencies , t-test, multiple regression, multiple regression, means, factor analysis, and so on. In this research, the researcher will use SPSS to analysis the data that get from the questionnaire.

3.3.2.3 Validity Test The validity test show how far questionnaire able to measure what the researcher want measure in this study. The validity test help the researcher to ensure that each of question that asked in the questionnaire is the right and appropriate question which each of question able to measure what the researcher want to measure.The Pearson‟s correlation coefficient is used to measure the validity of variables in research. The coefficient of correlation of Pearson ProductMoment can be based on the actual values of X and Y. The equation as follow:

√ √

Source: Berenson, Levine & Timothy C. Krehbiel (2011)

Where:

n = the number of paired observations

Σ X = the X variable summed

Σ Y = the Y variable summed

Σ X2 = the X variable squared and the squares summed

(Σ X) 2 = the X variable summed and the sum squared

Σ Y2 = the Y variable squared and the squared summed

(Σ Y) 2 = the Y variable summed and the sum squared

Σ XY = the sum of the product of X and Y

According to Sugiyono (2006) in Rahmawati research (2005) state that

“item which has high positive correlation with total score means that itemhas high validity” Minimum standard in order to fulfill validity test is if r=0.3, where if r<0.3 is categorize as invalid. In this research, the researcher use 0.05 for significance level in the validity test.

3.3.2.4 Reliability Test Refers to (Cooper & Schindler, 2006, pp352), “reliability is a characteristic of measurement concerned with accuracy, precision, and consistency”. Reliability test used to shows how far the measurementresult is relatively consistence if the measurement re-done for twice ormore. Reliability test as an index to show the degree of trusted and reliedof the instrument, in this research is refers to questionnaire, Lind, D. A.(2002).

Where:

α = instrument reliability‟s coefficient r = mean correlation coefficient between variables

N = number of questions

According to (Malhotra N. K., 2012)that to achieve the moderate scale reliability, the alpha value of all items that indicated the reliability statistics has to exceed criterion of 0.60. the variable will be categorize as unreliable if the cronbach‟s alpha of that certain variable is less than 0.60.

3.4. Sampling Design In this research, the questionnaire was distributed to the all of researcher colleagues and seniors in PT. Ekobumi Anugrah Makmur, The Jakarta Post, and PT. Tanjung Lesung Head Jakarta Office who are using RIM Blackberry smartphone despite of their gender and position.

3.4.1. Sample Size The sample size or number sample of respondent that researcher have to take is an important issues when in this research; the researcher used the quantitative analysis. According to Roscoe stated by Sekaran (2010) that “the determinationof sample size number should be among 30 to 500 elements”. In this research, the researcher uses census, in which all the data are collected from the whole population becomes the sample of this research with total 43 persons.

3.4.2. Margin of Error The margin of error is the percentage of allowance for no precision or error that occurs due to the use of sample instead of population. In the margin of error there are two level of percentage that usually many people used. There are 0.01 percent and 0.05 percent. Although 0.01 percentage level margin of error is more accurate than 0.05 percent, however in this research, the researcher used the 0.05 percentage margin or error in which means that in this study or research the levelof error is will be 5% and with the confidence level of 95%.

3.4.3 Sampling Technique Applied In order to collect all the data from the respondents who use RIM Blackberry Smartphone, the researcher used census to conduct the research. The data is collected at a specified time from the entire population; in contrast to other

42 surveys, in which information is collected from only a small part of the residents, and from that conclusions are reached regarding the general population.(Malhotra N. K., 2012).

3.5. Data Analysis

3.5.1. Descriptive Statistic In this research, the researcher used descriptive statistics with aim to give description of each variable that used in this research where its will be related with collecting and summarizing data and with the presentation of data.

3.5.2. Statistical Tools To conduct this study, the researcher used multiple regression as the function or formula to see and verify the relationship between independent variables Brand Related Attributes (Price, Physical Appearance, Quality, Celebrity Endorser, Prestige) and one dependent variable (Customer Buying Intention) and also to see what is the most significant factors from independent variables that affecting the dependent variable.

3.5.2.1. Multiple Regressions In this study, the researcher uses multiple regression tools to conduct the research. According to Stair, JR and Hanna, (2009), “multipleregression models is a practical extension of simple regression in which itallow user to build a model with several independent variables”.

Y= βo + β1X1 + β2X2 + β3X3 + β4X4 + β5X5 + β6X6 + β7X7 + ε

Where:

Y = Blackberry Buying Intention (Dependent Variable)

β0 = Y intercept

β 1 – β 7 = Regression Coefficient

X1 =Price (independent variable)

X2 = Brand Endorser (Independent Variable)

X3 = Quality (Independent Variable)

X4 = Prestige (Independent Variable)

X5 = Physical Appearance (Independent Variable)

ε = Random Error

In order to see the correlation between dependent variable and independent variables in this study, there are three tests or requirements that have to pass in the regression model. There are normality test, multicolmultipleity test and heteroscedasticity test.

3.5.2.2. Normality Test Normality test is test that used for determined whether the data is wellset – modeled by a normal distribution or not, or to compute how an unlikely random variable is to be normally distributed. In this research, the researcher will use the graphical method in the normality test. The researcher wills analysis the normality from the output that comes out from the SPSS V.20.0 process for accurate results. Graphical method visualized the distribution of a random variable compare the distribution to a theoretical one using plot. These method is either descriptive or theory driven. In this study, the researcher implements those two methods. Among of types in descriptive plots, the researcher will use histogram in which the researcher just need to see whether the data is normal or not by analyze the shape graph of histogram. The data will normally distribute if histogram line is in bell shaped. Theory driven plot consist of P-P plot (probability-probability plot) and Q-Q plot (quantile-quantile plot), in this part the researcher will get normal data if the plot is distributed by following the shape of line.

3.5.2.3.Multicollinearity Test Multicollinearitytest is a test that used to know or detect whether any independent variable that correlated strongly to each others in the multiple regression models. Multicollinearityis situation that researcher have to avoid,

44 because it will not good for independent variable correlated strongly to each others. In order to measure Multicollinearity, variance inflation factor (VIF) is used to measure. Normally, VIF measure how much the variance of the estimated coefficients is increased over the case of no correlation among the X variables. The formula for VIFk is:

Where:

R2 k = the R2 value obtained by regressing the kth predictor on the remaining predictors.

SSR = Regression sum of squares

SST = Total sum of squares

The researcher will determine whether is there any correlation between one or two independent variable by looking at VIF value. If VIF value of one variable is around or greater than 10, it means that there is colmultipleity occurs in that variable. If there are two or more variable which has VIF value around or greater than 10, it means that those two variableshas strong correlation and one of these variables are need to be eliminated directly from the multiple regressions models.

3.5.2.4. Heteroskedasticity Test Heteroskedasticity test is used for knowing whether the data is not normally distributed and it also use to know if the variance terms of errors are difference across observations. It can be seen from the scatter plot by looking at distribution of residual value toward the predicted value. If thedistribution is spread randomly without any systematic pattern, then the data is passed the heteroskedasticity test.

3.5.2.5 F Test F test is used to determine whether there is a significant relationship between independent variables and dependent variable. F test works by

45 statistically test the null hypothesis that there is no multiple relationship between independent variable and dependent variable. In below showed ftest formula that used in this research:

Where:

F = statistic test for F distribution

R2 = coefficient of determination k = number of independent variables in the model n = number of sample

The level of significance that used in this research is α = 0.05. Ho is accepter if the f test value is greater than the level of significance α = 0.05 and Ho is rejected if the f test value is less than the level of significance α= 0.05. H0: β1 =

β2 = β3 = β4 = β5 = β6 = β7 = 0, if significant F > 0.05, accept H0Ha: at least there is one β ≠ 0, if significant F < 0.05, reject H0

3.5.2.6 T Test T Test is used to determine the partial relationship of each independent variable toward dependent variable. The level of significance α is 0.05. Ho is rejected if t test value lower than α = 0.05 and Ho is accepted if t test value greater than α = 0.05. H0: βi = 0, if significant T > 0.05, accept H0 i = 1,2,3,4,5,6,7.

Ha: βi ≠ 0, if significant T < 0.05, reject H0

3.5.2.7 Coefficient of Determination Test (R2) The coefficient of determination test is used in this research in order to know about the correlation of independent variables toward the dependent variable and also to know how far the dependent variable is can be explained by independent variables. In this test it will looks at the R2 value and adjusted R square value. the value of R2 and adjusted R square is range from 0 till 1. If

46 thevalue of adjusted R square is close to 0, means that the capability of independent variables to explain the dependent variable is weak. In the other side if the value of adjusted R square is close to 1, means that the capability of independent variable to explain the dependent variable in this research is strong.

CHAPTER IV

ANALYSIS OF DATA AND INTERPRETATION OF

RESULTS

This chapter will showed all the important findings that have the researcher have got from study. It will be divided into two main issues. In the first part on this chapter, the researcher will show all the demographic view of sample (respondent profile) in the form of graphs and diagrams. Researcher also put all the percentages scale value of each statement in each variable in the form of graphs. In the second part, the researcher will gives the data analysis process results from SPSS V.20.0

4.1. Company Profile

4.1.1. Research in Motion BlackBerry, formerly Research In Motion (RIM), is a Canadian multinational telecommunication that designs, manufactures, and markets wireless solutions for the global communications market. Its products include integrated hardware, software and services that support multiple wireless network standards. Its flagship product is the BlackBerry smartphone. First introduced in 1999, BlackBerry products and services are now used by millions of customers around the world. BlackBerry was founded in 1984 and is headquartered in Waterloo, Ontario (bnamericas.com, 2013).

Blackberry has a vision to be recognized as the world‟s best telecommunication and wireless devices company, by infinite the possibility of the innovation and creation to produce its product and software devices; to ensure and enhance product quality as well as to satisfy its customers‟ unlimited demand in future. Thus, Blackberry will provide ongoing development towards its product

48 and customer services (including service after sales) in order to become the best in terms of customer value, employee talent and predictable growth. They also intend to create a strong culture in our organization so that it may achieve competitive advantage in this industry (StudyMode.com, 2010).

The mission of Blackberry is to develop socially and professionally responsible and proactive managers and leaders with holistic perspectives and competencies. In realizing the above vision and mission, RIM focuses on the following strategic areas:

 RIM – Strengthening Institutional Capacity and develop RIM into a financially self-sustaining Institute.

 Civil Service – Building management capabilities and meeting future requirements of the civil service.

 Local Governance – Facilitate decentralization process and enhance community participation through capacity development.

 Private Sector Development – Facilitate private sector capacity development through training, research and consultancy (BlackBerry Mission Statement , 2011).

1984RIM is founded by University of Waterloo engineering student Mike Lazaridis (President and Co-CEO) and University of Windsor engineering student Douglas Fregin (Vice President, Operations) (Globalnews.ca, 2013)

1988: RIM begins developing products for Mobitex wireless packet-switched data communications networks, often used by military and police forces, firefighters and ambulance services (Globalnews.ca, 2013).

1988: RIM releases the DigiSync Film KeyKode Reader, a product for the motion picture industry (Globalnews.ca, 2013).

1992: Jim Balsillie joins RIM. He would become co-CEO along with Lazaridis (Globalnews.ca, 2013).

1996: RIM releases the Interactive Pager, also known as the RIM 900, its first keyboard-based device (Globalnews.ca, 2013).

1997: RIM goes public on the Toronto Stock Exchange (Globalnews.ca, 2013).

1998: The RIM 950, a dramatically slimmed down two-way pager, is released (Globalnews.ca, 2013).

1999: The stock symbol RIMM is added to Nasdaq. RIM announces it has received FCC approval in the U.S. to begin selling its first BlackBerry device, the 850, with mobile email (Globalnews.ca, 2013).

2002: RIM adds voice calling capabilities to the BlackBerry 5810 (Globalnews.ca, 2013).

2003: RIM is added to the Nasdaq 100, releases its first BlackBerry with a colour screen (Globalnews.ca, 2013).

2004: RIM marks its 20th anniversary announcing it has passed the one-million subscriber mark. By year‟s end it has more than two million subscribers using its devices (Globalnews.ca, 2013).

2005: RIM hits four million subscribers, Balsillie and Lazaridis are named among Time magazine‟s 100 most influential people (Globalnews.ca, 2013).

2006: BlackBerry releases the first in a line of customer-friendly Pearl devices, adding a digital camera and multimedia capabilities (Globalnews.ca, 2013).

2007: RIM becomes the most valuable company on the TSX with a market capitalization surpassing $67 billion. The company has 10 million subscribers and introduces the first of its Curve BlackBerrys. But RIM is caught flat-footed by the overwhelming response to Apple‟s new iPhone (Globalnews.ca, 2013).

2008: RIM stock hits a high of $149.90 in June but the euphoria is short lived. The stock market crash in September takes its shares below $50 and its first touchscreen BlackBerry, the Storm, is critically panned as iPhone hype grows with the new 3G model (Globalnews.ca, 2013).

2009: BlackBerry launches its App World marketplace to compete with Apple‟s App Store. Its selection pales in comparison, a problem that is never solved (Globalnews.ca, 2013).

2010: RIM surpasses 40 million users and announces it has shipped its 100 millionth smartphone. It buys Ottawa-based QNX Software Systems, which would help reshape its operating system software going forward. A few months after the first iPad hits the market RIM unveils its PlayBook tablet but says it won‟t be released until early the following year (Globalnews.ca, 2013).

2011: An unpolished PlayBook is finally released in the spring, later than expected, and reviews are not kind. A few months later the company announces it‟s cutting 2,000 jobs. In October, users around the world suffer through a four- day service outage (Globalnews.ca, 2013).

2012: Lazaridis and Balsillie step down as co-CEOs and are replaced by Thorsten Heins. Balsillie also resigns from the board of directors. Within months Heins announces 5,000 layoffs and a delay to the critical BlackBerry 10 software update, which is seen as the company‟s last chance to stay alive. The stock touches a low of $6.10 in the fall (Globalnews.ca, 2013).

2013: Heins finally unveils BlackBerry 10 and the first two smartphones to use the operating system, the Z10 and Q10. The company purchases a Super Bowl ad to build hype for the new company, which officially changes its name to BlackBerry. The phones don‟t sell well enough to bolster its fortunes. Lazaridis steps down as vice chairman and leaves the board of directors. In August, the company says it is open to “strategic alternatives” including a possible sale. On Friday, the company announced it was laying off another 4,500 employees and

51 planned to refocus on the enterprise market. On Monday, it announced Fairfax Financial Holdings offered to buy the company in a deal worth about US$4.7 billion (Globalnews.ca, 2013).

4.2. Data Analysis 4.2.1.Descriptive Analysis 4.2.1.1 Respondent Profile Figure 4.1 Demographic Views (Gender)

Gender

0% 0%

Male 47% Female 53%

Source: Primary Data-Microsoft Excel 2010 Based on the research done in PT. Ekobumi Anugrah Makmur, The President Post and PT. Tanjung Lesung, the total amount of female employees are 23 people and male employees are 20 people.

Figure 4.2 Demographic Views (Age)

Age

20-25 26-30 31-35 36-40 >40

19% 37%

21%

9% 14%

Source: Primary Data-Microsoft Excel 2010

Based on the research done in PT. Ekobumi Anugrah Makmur, The President Post and PT. Tanjung Lesung, the employees with age range of 20 to 25 years old are 16 people, age range of 26-30 years old are 6 people, age range of 31 to 35 years old are 4 people, 36 to 40 years old are 9 people, and above 40 years old 8 people.

Figure 4.3 Demographic Views (Salary)

Salary (in Rupiah)

>8 million 6,1-8 milliom 14% 9% 2-4 million 35%

4.1-6 million 42%

Source: Primary Data-Microsoft Excel 2010 Based on the research done in PT. Ekobumi Anugrah Makmur, The President Post and PT. Tanjung Lesung, the employees that are having salary of 2 million to 4 million are 15 people, 4.1 million to 6 million are 18 people, 6.1 to 8 million are 4 people, and above 8 million are 6 people. The salary mentioned on the chart above does not include the allowance and bonus.

Figure 4.4 Demographic Views (Blackberry Type)

Blackberry Pearl Blackberry Q10 Blackberry Z10 Blackberry Apolo Blackberry Javelin Blackberry Smartphone Type Blackberry Curve Blackberry Storm Blackberry Bold Blackberry Dakota Blackberry Torch

0 2 4 6 8 10

Source: Primary Data-Microsoft Excel 2010 Based on the research done in PT. Ekobumi Anugrah Makmur, The President Post and PT. Tanjung Lesung, Blackberry Curve, Blackberry Storm, and Blackberry Torch are the blackberry type mostly used by these employees.

4.2.1.2.Respondents’ Responses to Price of Blackberry Smartphone Table 4.1 Descriptive Statistics for Price of Blackberry Smartphone

Descriptive Statistics

N Minimum Maximu Mean Std. m Deviation

X1.1 43 1 5 3.28 1.031 X1.2 43 1 5 3.02 1.035 X1.3 43 1 4 3.00 .900 X1.4 43 1 5 2.79 .965 Valid N 43 (listwise)

Source: Primary Data-SPSS V.20.0

Table 4.1shows respondents‟ responses to the five elements about price of Blackberry Smartphone. From the four statements, it can be seen that there is one statement that has the highest indicator which is X1.1 “Blackberry has a reasonable price, so purchasing Blackberry is a good deal”. It means that the respondents are mostly neutral about the price.

4.2.1.3. Respondents’ Responses to Brand Endorser of Blackberry Smartphone Table 4.2 Descriptive Statistics for Brand Endorser of Blackberry Smartphone

Descriptive Statistics

N Minimum Maximum Mean Std. Deviation

X2.1 43 1 4 1.84 .814

X2.2 43 1 4 1.93 .856

X2.3 43 1 4 2.28 .934

X2.4 43 1 4 2.16 .898

X2.5 43 1 3 1.58 .587

Valid N 43 (listwise)

Source: Primary Data-SPSS V.20.0 Table 4.2 shows respondents‟ responses to the five element of brand endorser. All of the five questions have low mean score with highest indicator only 2.28 from X2.3, which means all of the respondents are disagree with the influence of brand endorser on customer buying intention of Blackberry Smartphone. Most of them do not know and familiar about the brand endorser of Blackberry Smartphone.

4.2.1.4. Respondents’ Responses to Quality of Blackberry Smartphone Table 4.3 Descriptive Statistics for Quality of Blackberry Smartphone

Descriptive Statistics

N Minimum Maximum Mean Std. Deviation

X3.1 43 1 4 2.81 .852

X3.2 43 1 5 3.05 1.045

X3.3 43 2 5 3.51 1.032

X3.4 43 1 4 2.88 .905

X3.5 43 1 4 3.12 .879

X3.6 43 1 5 3.14 1.037

Valid N 43 (listwise)

Source: Primary Data-SPSS V.20.0

Table 4.3 shown respondents‟ responses to the six elements of quality. X3.3 “Blackberry‟s applications are good and easy to use “ has the highest indicator 3.51. It means that most of the respondents are more likely familiar with Blackberry‟s good quality and by improving the quality of application it will give significance impact on customer buying intention of Blackberry.

4.2.1.5. Respondents’ Responses to Prestige of Blackberry Smartphone Table 4.4 Descriptive Statistics for Prestige of Blackberry Smartphone Descriptive Statistics

N Minimum Maximum Mean Std. Deviation

X4.1 43 1 5 3.02 1.035

X4.2 43 1 5 3.26 .848

X4.3 43 1 5 2.98 .859

Valid N 43 (listwise)

Source: Primary Data-SPSS V.20.0 Table 4.4 shows respondents‟ responses to the three elements of prestige. X4.2 “Blackberry brand is an upscale brand” has the highest indicator with score 3.26. It means that respondents are familiar with Blackberry‟s prestige however they are not encourage enough to agree with these statements.

4.2.1.6. Respondents’ Responses to Physical Appearance of Blackberry Smartphone Table 4.5 Descriptive Statistics for Physical Appearance of Blackberry Smartphone

Descriptive Statistics N Minimum Maximum Mean Std. Deviation X5.1 43 1 5 3.42 1.006 X5.2 43 1 5 3.60 1.027 X5.3 43 1.00 5.00 3.8605 .83328 Valid N 43 (listwise)

Source: Primary Data-SPSS V.20.0

Table 4.5 shows respondents responses to the three elements of physical appearance. X5.3 “Blackberry design is special and different than other smartphones” has the highest indicator with score 3.86. It means that respondents agree with physical appearance impact on customer buying intention.

4.2.1.7. Respondents’ Responses to Customer Buying Intention of Blackberry Smartphone Table 4.6 Descriptive Statistics for Customer Buying Intention of Blackberry Smartphone Descriptive Statistics N Minimum Maximum Mean Std. Deviation X6.1 43 1.00 5.00 2.7674 1.19198 X6.2 43 1 5 3.00 1.215 X6.3 43 1 5 2.86 1.104 X6.4 43 1 5 2.65 1.066 X6.5 43 1.00 3.00 1.8605 .70984 Valid N 43 (listwise)

Source: Primary Data-SPSS V.20.0 Table 4.6 Showscustomers‟ responses on dependent variable. The mean score for X6.2 “I intend to buy Blackberry again if my current Blackberry is broken or lost” has the hishest indicator with score 3.00. Itmeans there is no urge of buying Blackberry Smartphone on customers‟ mind. But they are still considering their buying intention and willingness to recommend Blackberry to their colleague.

4.2.2.Validity Test On this research, researcher does a validity test by taking 30 samples from total 43 respondents and researcher uses SPSS 20.0 to compute the result. The researcher used Pearson method for validity test and double check the R compute with R table. This validity test use confidence level 95% and where df = n-2.

From the r-table, researcher gets 0.361 as r-table value.The criteria in validity test are:

- If r compute < r table, the question is invalid. - If r compute (negative) < r table, the question is also invalid. - If r compute > r table, then the question is valid. Table 4.7Pearson Test Validity for Product

Source: Primary Data-SPSS V.20.0

Table 4.8Pearson Validity Test for Celebrity Endorser

Source: Primary Data-SPSS V.20.0

Table 4.9Pearson Validity Test for Quality

Source: Primary Data-SPSS V.20.0

Table 4.10Pearson Validity Test for Prestige

Source: Primary Data-SPSS V.20.0

Table 4.11Pearson Validity Test for Physical Appearance

Source: Primary Data-SPSS V.20.0

Table 4.12Pearson Validity Test for Customer Buying Intention

Source: Primary Data-SPSS V.20.0

Table 4.13Validity Test R Compute Result Cronbach's Question Corrected Alpha if R-Table Pass Number Item-Total Item Correlation Deleted X1.1 .593 .950 0.361 Valid X1.2 .584 .950 0.361 Valid X1.3 .704 .949 0.361 Valid X1.4 .610 .950 0.361 Valid X2.1 .598 .950 0.361 Valid X2.2 .590 .950 0.361 Valid X2.3 .633 .949 0.361 Valid X2.4 .674 .949 0.361 Valid X2.5 .506 .951 0.361 Valid X3.1 .707 .949 0.361 Valid X3.2 .797 .947 0.361 Valid X3.3 .655 .949 0.361 Valid X3.4 .647 .949 0.361 Valid X3.5 .590 .950 0.361 Valid X3.6 .540 .950 0.361 Valid X4.1 .844 .947 0.361 Valid X4.2 .800 .948 0.361 Valid X4.3 .669 .949 0.361 Valid X5.1 .635 .949 0.361 Valid X5.2 .666 .949 0.361 Valid X5.3 .408 .952 0.361 Valid X6.1 .603 .950 0.361 Valid X6.2 .766 .948 0.361 Valid X6.3 .795 .947 0.361 Valid X6.4 .588 .950 0.361 Valid

X6.5 .453 .951 0.361 Valid

Source: Primary Data-SPSS V.20.0 Based on Pearson validity test all questions under 6 variables are valid because all questions have two-tailed result. The researcher double check the validity test result by using R compute with r-table. Table 4.15 above shows that 26 questions under both independent variable (Price, brand Endorser, Quality, Prestige, and Physical Appearance) and dependent variable (Customer Buying Intention) are valid because r > 0.361. All questions are valid and fulfill the requirement. There is no question which r value < 0.361. All results now can be used to next analysis.

4.2.3. Reliability Statistics Reliabilities less than 0.60 are considered to be poor, those in the 0.70 range are acceptable, and those over 0.80 are good (Sekaran, 2009). The result of reliability test for the questionnaire used in this research:

Table 4.14 Reliability Category Table

Alpha Reliability Category 0.00 – 0.20 Very Low > 0,20 – 0.40 Low > 0,40 – 0,60 Sufficient > 0,60 – 0,80 High > 0,80 – 1,00 Very High Source: (Furaiji & Malgorzata Tatuszriska, 2012)

Table 4.15 Reliability Statistics Table

Reliability Statistics Cronbach's Cronbach's N of Alpha Alpha Based Items on Standardized Items .951 .952 26

Source: Primary Data-SPSS V.20.0

Cronbach Alpha (a measure of internal consistency or how closely related a set of items are) was used to assess the inter reliability for each variables, has been Calculated as 0.951 which is enough above the minimum desirable level (0.6). It means that the items have a very high degree of internal consistency (note that a reliability coefficient of 0.70 is considered „acceptable‟ in most social science research (Hair et al., 2006) (Furaiji & Malgorzata Tatuszriska, 2012).

4.2.4.Multiple Regressions

4.2.5.1 Normality Test In every research or study which is using multiple regression as statistical tools, it is necessary to test the normality of the data that used in the research. In this research, the researcher used histogram and P-P plot (Probability-Probability plot) to test the normality of each data.

Figure 4.5 Histogram

Source: Primary Data-SPSS V.20.0

Figure 4.6 Normal P-P Plot of Regression Standardized Residual

Source: Primary Data-SPSS V.20.0

From figure 4.5, it can be seen that the data is normally distributed, as the line on histogram is depicts in the form bell shape which means that the data is normally distributed. From figure4.6 shows that the plot is line close to the diagonal line and lining up along with the diagonal line which goes from lower left to upper right. It means that the data in the regressions model is fulfilling the requirement in the normality test.

4.2.5.2 MulticollinearityTest Table 4.16MulticollinearityTest

Source: Primary Data-SPSS V.20.0

From table 4.16 shows that all the variables have variance inflation factor (VIF) values which less than 10. It means that in this regressions model there is no Multicollinearityexist.

4.2.5.3 Heterokedasticity Test Heteroskedasticity often occurs in the process of analysis if the data is not normally distributed or if the variance of the error term differs across observations. The data will fulfill the heteroskedasticity assumption test if the distribution of residual values toward the predicted values in the scatter plot is spread randomly and does not make certain pattern such as decreasing or increasing pattern.

Figure 4.7 Scatterplot of Heteroskedasticity

Source: Primary Data-SPSS V.20.0

From figure 4.7 above, it shows that there is no pattern that occurs inside. The plots were spread randomly without creating a certain or systematic pattern such as decreasing or increasing pattern, it means there was no heteroskedasticity exist or occurs between independent variables and dependent variable.

4.2.5.4 Testing the Hypothesis Results In chapter 3, the researcher has stated some hypothesis related to the problem related to this study. The researcher will used T test and F test in order to determine which hypothesis that researcher have to accept or reject.

4.2.5.4.1. F Test

F test is used to test the effect of all independent variables toward independent variable simultaneously.

H0: β1 = β2 = β3 = β4 = β5 = 0, Null hypothesis is accepted if F value is greater than 0.05 (there is no significant factor of brand related attributes: Product, Celebrity Endorser, Quality, Prestige, and Physical Appearance that influence customer buying intention)

Ha:βi ≠ 0 i = 1,2,3,4,5 , Alternative hypothesis is accepted if F value less than 0.05 (there is a one significant factor of brand related attributes: Product, Celebrity Endorser, Quality, Prestige, and Physical Appearance that influence customer buying intention). In this study, the researcher used SPSS V.20.0 to do the f test, and it is shown in the table bellow:

Table 4.17 F Test Result – ANOVA

ANOVAa Model Sum of df Mean F Sig. Squares Square Regression 15.721 5 3.144 8.973 .000b 1 Residual 12.965 37 .350 Total 28.687 42 a. Dependent Variable: Y b. Predictors: (Constant), X5, X2, X1, X3, X4

Source: Primary Data-SPSS V.20.0

The requirement value that has to achieve in this F test is the significance value has to be less than 0.05 and F value has to be greater than 1.96.From table 4.17 above, it can be seen that the significance value is 0.00 which is less than 0.05 and the f value is greater than 1.96 which is 8.973. From that results it can be

67 conclude that all of the independent variable of brand related attributes (Price (X1), Celebrity Endorser (X2), Quality (X3), Prestige (X4), Physical Appearance (5)) has significant impact toward dependent variable of Blackberry Smartphone‟scustomerbuying intention. It means in this study the researcher will accept the Ha and reject H0.

4.2.5.4.2.T Test

T test is used to examine whether each independent variable factor of brand related attributes (Price (X1), Celebrity Endorser (X2), Quality (X3), Prestige (X4), Physical Appearance (5)) has influence toward dependent variable of Blackberry Smartphone‟s customer buying intention. Each of independent variable will be significance toward the dependent variable if each value of p of each independent variable is less than 0.05. The hypotheses are following:

 H0.1: Brand related attributes of Price has no significant impact on the customer buying intention of Blackberry Smartphone.

H1.1: Brand related attributes of Price has a significant impact on the customer buying intention of Blackberry Smartphone.

 H0.2: Brand related attributes of Celebrity Endorser has no significant impact on the customer buying intention of Blackberry Smartphone.

H1.2: Brand related attributes of Celebrity Endorser has a significant impact on the customer buying intention of Blackberry Smartphone.

 H0.3: Brand related attributes of Quality has no significant impact on the customer buying intention of Blackberry Smartphone.

H1.3: Brand related attributes ofQuality has a significant impact on the customer buying intention of Blackberry Smartphone.

 H0.4: Brand related attributes of Prestige has no significant impact on the customer buying intention of Blackberry Smartphone.

H1.4: Brand related attributes of Prestige has a significant impact on the customer buying intention of Blackberry Smartphone.

 H0.5: Brand related attributes of Physical appearance has no significant impact on the customer buying intention of Blackberry Smartphone.

H1.5: Brand related attributes of Physical appearance has a significant impact on the customer buying intention of Blackberry Smartphone.

Table 4.18 T Test – Significance Value

Source: Primary Data-SPSS V.20.0

From the table 4.18, it has show each significance value of each independent variables, here are the results as following:

 Price (X1) has significance value of 0.997 which is greater than 0.05. It means that Price (X1) is not significance toward the dependent variable of

Blackberry Smartphone‟s customer buying intention. Therefore H0.1 is

accepted and rejected H1.1 from the hypothesis.  Brand Endorser (X2) has significance value of 0.435which is greater than 0.05. It means that brand Endorser (X2) is not significance toward the dependent variable of Blackberry Smartphone‟s customer buying

intention. Therefore H0.2 is accepted and rejected H1.2 from the hypothesis.  Quality (X3) has significance value of 0.004 which is less than 0.05. it means that Quality (X3) is significance toward the dependent variable of

Blackberry Smartphone‟s customer buying intention. Therefore H0.3 is

rejected and accepted H1.3 from the hypothesis.  Prestige (X4) has significance value of 0.216 which is greater than 0.05. It means that Prestige (X4) is not significance toward the dependent variable

of Blackberry Smartphone‟s customer buying intention. Therefore H0.4 is

accepted and rejected H1.4 from the hypothesis.  Physical Appearance (X5) has significance value of 0.895 which is greater than 0.05. It means that Physical Appearance (X5) is not significance toward the dependent variable of Blackberry Smartphone‟s customer

buying intention. Therefore H0.5 is accepted and rejected H1.5 from the hypothesisg.

According to table above, it can be conclude that among the five independent variables of Brand Related Attributes shown that the most significance factor is Quality (X3). It can be seen at t column where the value of Quality (X3) in t column is 3.491 which is the highest among other independent variables. Where for the other independent variables (Price, Brand Endorser, Prestige, and Physical Evidence) which are not significance toward the customer buying intention of Blackberry Smartphone among employees at PT. Ekobumi Anugrah Makmur, The President Post, and PT. Tanjung Lesung, those variable partially still give influence toward customer buying intention of Blackberry Smartphone as it still has values in t value column as it is shown on the table above.

4.2.5.5.Multiple Regression Model There are more than one independent variables that used in this study, because of that the researcher used multiple regression models in order to explain relationship between dependent variable and those independent variables.

Y= βo + β1X1 + β2X2 + β3X3 + β4X4 + β5X5 + ε

From table 4.6, it has showed each significance value of each independent variable and it showed that there are three independent variable which not significance and it cannot be used in the multiple regression model.

Table 4.19 Significance Table

Independent variables Significance Value Standard Value of 0.05 Price (X1) 0.997 Not Significance Brand Endorser (X2) 0.435 Not Significance Quality (X3) 0.04 Significance Prestige (X4) 0.216 Not Significance Physical Appearance (X5) 0.895 Not Significance Source: Primary Data-SPSS V.20.0

There are four independent variables which are eliminated, Price (X1), Brand Endorser (X2), Prestige (X4), and Physical Appearance (X5). The remaining will be put in the multiple regression models.

Y= 0.616X3 + ε

Where:

Y = Customer Buying Intention

X3= Quality

ε = Random Error term/ Residual

4.2.5.6. Measuring the Variability of Regression Models This measurement is used to examine whether this multiple regression model is able to help in predicting the customer buying intention of Blackberry Smartphone based on Brand Related Attributes (Price, Brand Endorser, Quality, Prestige, and Physical Appearance).

Table 4.20 Model Summaryb

Model Summaryb Model R R Square Adjusted R Std. Error of Square the Estimate

1 .740a .548 .487 .592 a. Predictors: (Constant), X5, X2, X1, X3, X4 b. Dependent Variable: Y Source: Primary Data-SPSS V.20.0

Table 4.20 showed that R value which to describe the coefficient of correlation, where the R value is 0.740 which means that there is a quite strong correlation between independent variables and dependent variable of customer buying decision. The adjusted R square is to show how far or large these all independent variables can describe or affecting the independent variable. from table 4.20 above it is shown that adjusted R square value is only 0.487, which means that 48.7% variability of customer buying intention of Blackberry Smartphone can be explained by price, celebrity endorser, quality, prestige, and physical evidence. Whereas the rest of 51.3% is explained or describe by another factors which are not discussed in this research.

4.3. Interpretation of Results

4.3.1. Price towards Customer Buying Intention of Blackberry Smartphone According to the T test and F test results, place variable is categorized as variable that can influence the customer buying intention however its not significance toward the customer buying intention. It is shown on the t value in T table which only reach 0.04 lower impacts towards the dependent variable and the significance value is 0.997 greater than 0.05 which means that Price (X1) is not significance toward the customer buying intention.

Based on statement above and related to questionnaire on price part statement, it is shown that the price of Blackberry Smartphone does not gives significance

72 impact towards customer buying intention of Blackberry Smartphone among employees at PT. Ekobumi Anugrah Makmur, The President Post, and PT. Tanjung Lesung, however, it is influence customer buying intention. It means that whenever Blackberry‟s pricing goes up, either because of the release of new product or market demand, it will influence their buying intention although not significant enough to encourage their buying intention. In this case we can analyze that based on customer point of view, especially employees with sufficient income, they are more likely prefer to buy smartphone with affordable price and adequate benefit.

4.3.2. Brand Endorser towards Customer Buying Intention of Blackberry Smartphone According to the T test and F test results, brand endorser variable is categorized as variable that can influence the customer buying intention however its not significance toward the customer buying intention. It is shown on the t value in T table which only reach -.789 lower impacts towards the dependent variable and the significance value is 0.435 greater than 0.05, which means that Brand Endorser (X2) is not significance toward the customer buying intention.

Based on above statement and related with questionnaire in brand endorser part statement shown that customer in this research, employees at PT. Ekobumi Anugrah Makmur, The President Post, and PT. Tanjung Lesung are not prefer to buy smartphone because of the influence of brand endorser. As customer with average majority age 20-25 years old, brand endorser is not a significant factor they want to buy product. Moreover, most of them do not know about brand endorser of Blackberry Smartphone and the brand endorser also someone who is not popular among them.

4.3.3. Quality towards Customer Buying Intention of Blackberry Smartphone

According to the result of T test and F test, Quality variable is influence and significance toward customer buying intention of Blackberry Smartphone. The t

73 value of quality variable in T test table is 3.099which mean that every increase of Quality (X3) such as improvement on (application, component, design, packaging, and other values) will lead to increase of customer buying intention of Blackberry Smartphone. The significance value is 0.004 less than 0.05, which means that quality (X3) is having significance impact toward the customer buying intention.

Based on above questionnaire statement related to questionnaire is quality part statement, it means that the better quality of Blackberry Smartphone, supported by better design, features, application, component, and other benefit which are offered to customer, it will lead to the increasing of customer buying intention among employees at PT. Ekobumi Anugrah Makmur, The President Post, and PT. Tanjung Lesung.

4.3.4. Prestige towards Customer Buying Intention of Blackberry Smartphone According to the T test and F test results, Prestige variable is categorized as variable that can influence the customer buying intention however its not significance toward the customer buying intention. It is shown on the t value in T table which only reach 1.258 lower impacts toward the dependent variable and the significance value is 0.216, slightly greater than 0.05, which means that prestige (X4) is not significance toward the customer buying intention.

Based on above statement related with the questionnaire in prestige part statement shown that customer or in this research are employees at PT. Ekobumi Anugrah Makmur, The President Post, and PT. Tanjung Lesung, concern enough about prestige of smartphone they are using as communication device. As professional workers, their gadget also reflects their status and Blackberry Smartphone is counted as a prestigious brand that boosts their self esteem. Their point of view of Blackberry Smartphone as a prestigious brand influences their buying intention although not really give a significant impact on their buying intention.

4.3.5. Physical Appearance towards Customer Buying Intention of Blackberry Smartphone According to the T test and F test results, Physical Appearance variable is categorized as variable that can influence the customer buying intention however it is not significance toward the customer buying intention. It is shown on the t value in T table which only reach -.133 lower impacts towards the dependent variable and the significance value is 0.895 greater than 0.05, which means that Physical Appearance (X5) is not significance toward the customer buying intention.

Based on above questionnaire statement related to questionnaire is quality part statement, employees at PT. Ekobumi Anugrah Makmur, The President Post, and PT. Tanjung Lesung, physical appearance doesn‟t really matter for them. Unlike teenagers who are really concern with appearance, professional workers prefer to choose product that meet their working necessity.

CHAPTER V

CONCLUSION AND RECOMMENDATION

5.1. General In this chapter the researcher will presents the conclusion and recommendation which derived from the analysis in chapter four about the impact of brans related attributes on customer buying intention of blackberry Smartphone at PT. Ekobumi Anugrah Makmur, The President Post, and PT. Tanjung Lesung. This analysis is to know whether the brand related attributes (Price, Brand Endorser, Quality, Prestige, and Physical Appearance) has influence simultaneously toward the customer buying intention of Blackberry Smartphone and which factor of brand related attributes that has significant influence on customer buying intention of Blackberry Smartphone at PT. Ekobumi Anugrah Makmur, The President Post, and PT. Tanjung Lesung

5.2. Conclusion According to chapter four about the analysis of brand relate attributes‟ impact on customer buying intention of Blackberry Smartphone, some conclusion that the researcher got are:

1. According to the F test result which derived from chapter four, it is shown that all of independent variables of Brand Related Attributes (Price (X1), Brand Endorser (X2), Quality (X3), Prestige (X4), and Physical Evidence (X5)) has simultaneously impacts customer buying intention of Blackberry Smartphone among employees at PT. Ekobumi Anugrah Makmur, The President Post, and PT. Tanjung lesung. It could be proven by looking at the F value and and significance value at table 4.17 which presents that F value is 8.973 greater than 1.96 and significance value is 0.00 lower than 0.05.

2. Secondly, according to T test result which derived from chapter four, it‟s shown that among five independents variables in brand related attributes, there is only one independent variable that partially has significance impact toward customer buying intention of Blackberry Smartphone among employees at PT. Ekobumi Anugrah Makmur, The President Post, and PT. Tanjung lesung. The independent variable which is significance is Quality (X3). 3. Thirdly, the rest independence variables of brand related attributes which were not significance toward customer buying intention of Blackberry Smartphone among employees at PT. Ekobumi Anugrah Makmur, The President Post, and PT. Tanjung lesung were Price (X1), Brand Endorser (X2), Prestige (X4), and Physical Evidence (X5)/ however, although those independent variable were not significance towards customer buying intention among employees at PT. Ekobumi Anugrah Makmur, The President Post, and PT. Tanjung lesung, those four independent variables still influenced and impact customer buying intention based on the t values in T table and the interpretation result in chapter four. 4. Finally, according to result and interpretation results that have been shown in chapter four, Quality is the only one and the most significance and influencing factors that impact customer buying intention of Blackberry Smartphone among employees at PT. Ekobumi Anugrah Makmur, The President Post, and PT. Tanjung lesung.

5.3. Recommendations 1. Based on conclusions drawn above and some finding in this study, there are some possible course of action may be identified. The following recommendations are offered as guidelines or suggestion for consideration and possible application by RIM Blackberry company in dealing with their sales. The following recommendations are: 2. As it was stated above in the conclusion part, there is only one variable of brand related attributes that has significance impact toward

customerbuying intention of Blackberry Smartphone. According to the research that the researcher got in this study, a good quality of smartphone with well supported component and various user friendly application will be able to boost the sales of smartphone since the increasing in quality will give a significance impact on customer buying intention especially in professional worker market segment. Employees tend to consider product that can give them more benefit and advantage. Promotional content should be stressing on Blackberry‟s quality and features to gain market attention. 3. For the first independent variable Price (X1), although price is not significance towards customer buying intention, price still plays an important role in customer buying intention among employees at PT. Ekobumi Anugrah Makmur, The President Post, and PT. Tanjung lesung. Before they buy smartphone that can match their needs, they will also still considering the price. The researcher recommend the company to always keep balance between the product values and the product price, although the product has many competitors, they should maintain the market pricing. Significance price reduction or rising will influence customer perception towards product value. However as long the price and the quality or value of the product is match to each other, the product will be able to compete in the market and increasing the customer buying intention. 4. For the second independent Brand Endorser (X2) according to the result that the researcher got on chapter four and the interpretation of the result, although brand endorser is not significance towards customer buying intention of Blackberry Smartphone among employees at PT. Ekobumi Anugrah Makmur, The President Post, and PT. Tanjung lesungbrand endorser variable still has influence to the customer buying decision. To be able to reach target market of professional worker aged 20 to 40, RIM Blackberry company need to carefully choose its brand ambassador that resemble well with its market segment. Since the positioning of Blackberry is for business executive people, the researcher recommend to

choose brand endorser that helps to strengthen its positioning and help the company to carve out a niche for itself and avoid any direct conflict with other smartphone that positioned themselves in lifestyle section among youth. 5. The fourth independent variable, Prestige (X4) according to the result that the researcher got on chapter four and the interpretation of the result, although prestige is not significance, prestige score is slightly close to the desirable score of significance level. Before Blackberry Messenger released on android and iOS, Blackberry sure hold a strong prestige branding as this application only available in Blackberry. But now after the release of BBM to android and iOS, people start to think that Blackberry has lost its prestige. The researcher found that prestige image of Blackberry is suitable with its positioning on business executive people, and most of Blackberry users are a loyal customer. Since positioning of a product depends on its marketing strategy, the researcher recommend RIM blackberry to reduce unnecessary promotion tools and focus on its customer relationship management. 6. The last independent variable is Physical Appearance (X5). According to the result that the researcher got on chapter four and the interpretation of the result, physical appearance is not significance but still influence customer buying intention. In this case, the researcher recommended Blackberry to improve the color choice or user friendly design to increase the customer buying intention. 7. By doing all of those recommendation that the researcher has given thorough this study, the researcher hope that it can work well in the future , as it is shown in adjusted R square table shown that brand related attributes is able to give impact on customer buying intention as much as 53.1%. By maintaining the significance variable Quality and improving other influencing variables (price, brand endorser, prestige, and physical appearance), the researcher hope that Blackberry will be able to increase its customer buying intention.

8. For further research, the researcher suggests to have bigger sample size and put other intrinsic attribute variables (color, texture, quality, style, design, features of products) and extrinsic attribute variables(price information, packaging or product appearance information, brand image, user imagery and usage imagery). Due to the time limitation of this research, the researcher unable to cover larger sample size. For the future research, the researcher hope by adding more variables and bigger sample size, then the data collected can be better.

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APPENDIX

Appendix 1 Questionnaire

Respondent Profile: please fill it with (x) for the correct answer.

1. Dou you use Blackberry as your communication device?

Yes No

2. Which Type of Blackberry that you use as your communication device? Please Kindly type or Model (write your phone model): ………

3. Gender

Male Female

4. Age 20-25 Year 25-30 Year 31-35 Year 35-40 Year >40 Year old old old old old

5. Salary <2million 2-4 million 4,1-6 million 6,1-8 million >8 million

Please fill in the score column using below scale for each statement provided for Blackberry smartphone.

You should rank each statement as follow Scale

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

PRICE 1 2 3 4 5 Journals 1 Blackberry has a reasonable price, so (Irmak, Wakslak, & trope, purchasing Blackberry is a good deal 2013) 2 Blackberry‟s price is more competitive (Irmak, Wakslak, & trope, than other competitors‟ brand 2013) 3 Blackberry‟s price is worth with its (Irmak, Wakslak, & trope, quality and value 2013) 4 I buy Blackberry because it is cheaper (Irmak, Wakslak, & trope, than other similar category smartphones 2013)

Brand Endorser (Celebrity Endorser) 5 I know Annisa Pohan as Blackberry (Carrillat, D'astous, & Endorser in Indonesia Lazure, 2013) 6 I like Blackberry Endorser Indonesia (Ugla, 2008) 7 The celebrity can represent Blackberry (Ugla, 2008) very well 8 I associate the celebrity directly with the (Ugla, 2008) quality and performance of Blackberry 9 I choose Blackberry because of the (Carrillat, D'astous, & celebrity endorser Lazure, 2013)

Quality 10 Blackberry‟s component quality is better (Golder, Mitra, & than other smartphone Moorman, 2012) 11 I trust Blackberry‟s quality (Golder, Mitra, & Moorman, 2012) 12 Blackberry‟s applications are good and (Golder, Mitra, & easy to use Moorman, 2012)

13 Blackberry has high quality component (Golder, Mitra, & (product) Moorman, 2012) 14 Blackberry has a good product design (Golder, Mitra, & Moorman, 2012) 15 Blackberry‟s packaging is nice and (Golder, Mitra, & special Moorman, 2012)

Prestige 16 Blackberry brand is very prestigious (Özsomer, 2012) 17 Blackberry brand is an upscale brand (Özsomer, 2012) 18 Blackberry has a high status among other (Özsomer, 2012) brands

Physical Appearance 19 Blackberry‟s shape and style is easy to (Mugge & Schoormans, handle 2012) 20 I like Blackberry‟s color (Mugge & Schoormans, 2012) 21 Blackberry design is special and different (Mugge & Schoormans, than other smartphones 2012)

Customer Buying Intention 22 I plan to upgrade my current Blackberry (Carrillat, D'astous, & with a better version next year Lazure, 2013) 23 I intend to buy Blackberry again if my (Carrillat, D'astous, & current Blackberry is broken or lost Lazure, 2013) 24 I think Blackberry is worth buying (Carrillat, D'astous, & Lazure, 2013) 25 I am willing to recommend my friends to (Carrillat, D'astous, & buy Blackberry Lazure, 2013) 26 Blackberry‟s Brand endorser influenced (Carrillat, D'astous, & my intention to purchase a Blackberry Lazure, 2013) Device

Appendix 2 Anti Image Correlation table

X1.1 X1.2 X1.3 X1.4 X2.1 X2.2 X2.3 Anti-image X1.1 .707a -.569 -.562 .075 -.114 .230 -.314 Correlation X1.2 -.569 .701a .028 .139 .208 -.027 .059 X1.3 -.562 .028 .771a -.205 .249 -.205 .161 X1.4 .075 .139 -.205 .662a .228 .125 -.490 X2.1 -.114 .208 .249 .228 .730a -.282 -.061 X2.2 .230 -.027 -.205 .125 -.282 .686a -.539 X2.3 -.314 .059 .161 -.490 -.061 -.539 .610a X2.4 .250 -.216 -.292 .240 -.542 .087 -.385 X2.5 -.079 .046 -.041 -.420 -.322 -.155 .529 X3.1 .206 -.514 -.200 -.168 -.179 -.215 .069 X3.2 -.018 .139 -.151 -.494 -.406 .106 .246 X3.3 -.416 .348 .058 .166 .305 -.656 .558 X3.4 -.029 -.212 .376 .209 .320 -.111 -.175 X3.5 -.212 .136 .152 -.016 .041 -.369 .431 X3.6 .115 -.326 -.149 -.666 -.500 -.063 .327 X4.1 .137 .237 -.279 .490 .150 .267 -.546 X4.2 .146 -.175 -.061 -.054 .264 .022 -.180 X4.3 .012 -.147 -.175 -.013 -.433 -.315 .368 X5.1 .141 -.175 .271 .315 .274 .281 -.587 X5.2 .579 -.309 -.333 .277 -.130 .578 -.546 X6.2 -.477 .162 .583 -.214 .284 -.429 .484 X6.3 .138 -.375 .122 -.373 -.252 .443 -.331 X6.4 .039 .605 -.463 .474 .158 .294 -.271

X2.4 X2.5 X3.1 X3.2 X3.3 X3.4 X3.5 X3.6 X4.1 .250 -.079 .206 -.018 -.416 -.029 -.212 .115 .137 -.216 .046 -.514 .139 .348 -.212 .136 -.326 .237 -.292 -.041 -.200 -.151 .058 .376 .152 -.149 -.279 .240 -.420 -.168 -.494 .166 .209 -.016 -.666 .490 -.542 -.322 -.179 -.406 .305 .320 .041 -.500 .150 .087 -.155 -.215 .106 -.656 -.111 -.369 -.063 .267 -.385 .529 .069 .246 .558 -.175 .431 .327 -.546 .798a .092 .087 .230 -.316 -.160 .041 .281 -.040 .092 .549a -.269 .625 -.032 -.524 .439 .432 -.313 .087 -.269 .806a -.294 .018 .116 -.124 .258 -.189 .230 .625 -.294 .713a -.256 -.655 .262 .648 -.325 -.316 -.032 .018 -.256 .634a .129 .299 -.245 -.128

-.160 -.524 .116 -.655 .129 .699a -.409 -.335 -.088 .041 .439 -.124 .262 .299 -.409 .701a .110 -.299 .281 .432 .258 .648 -.245 -.335 .110 .548a -.607 -.040 -.313 -.189 -.325 -.128 -.088 -.299 -.607 .788a -.357 -.570 .502 -.560 -.013 .363 -.427 -.112 .133 .361 .402 .033 .346 .314 -.171 .244 .346 -.287 -.051 -.575 -.036 -.555 -.319 .500 -.300 -.441 .243 .280 -.138 -.046 -.003 -.640 .026 -.302 -.143 .291 -.407 .202 -.233 -.081 .457 .226 .216 -.119 -.375 .076 -.100 .278 .010 -.740 3.209E- -.434 .220 .080 05 -.010 -.097 -.427 .025 .159 -.270 -.003 -.355 .438

X4.2 X4.3 X5.1 X5.2 X6.2 X6.3 X6.4 .146 .012 .141 .579 -.477 .138 .039 -.175 -.147 -.175 -.309 .162 -.375 .605 -.061 -.175 .271 -.333 .583 .122 -.463 -.054 -.013 .315 .277 -.214 -.373 .474 .264 -.433 .274 -.130 .284 -.252 .158 .022 -.315 .281 .578 -.429 .443 .294 -.180 .368 -.587 -.546 .484 -.331 -.271 -.357 .361 -.051 .280 -.407 .076 -.010 -.570 .402 -.575 -.138 .202 -.100 -.097 .502 .033 -.036 -.046 -.233 .278 -.427 -.560 .346 -.555 -.003 -.081 .010 .025 -.013 .314 -.319 -.640 .457 -.740 .159 .363 -.171 .500 .026 .226 3.209E-05 -.270 -.427 .244 -.300 -.302 .216 -.434 -.003 -.112 .346 -.441 -.143 -.119 .220 -.355 .133 -.287 .243 .291 -.375 .080 .438 .782a -.577 .255 -.080 -.152 .278 -.090 -.577 .717a -.554 -.084 -.009 -.381 -.137 .255 -.554 .662a .285 .056 .276 -.042 -.080 -.084 .285 .652a -.588 .321 .071 -.152 -.009 .056 -.588 .716a -.349 -.215 .278 -.381 .276 .321 -.349 .739a -.454 -.090 -.137 -.042 .071 -.215 -.454 .660a

Appendix 3 Total variance Explained Table

Appendix 4 Reliability for Each Variable

Price Reliability Statistics

Cronbach's Cronbach's N of Items Alpha Alpha Based on Standardized Items

.826 .919 5 Brand Endorser

Reliability Statistics

Cronbach's Cronbach's N of Items Alpha Alpha Based on Standardized Items .808 .912 6

Quality

Reliability Statistics

Cronbach's Cronbach's N of Items Alpha Alpha Based on Standardized Items

.786 .891 7

Prestige

Reliability Statistics

Cronbach's Cronbach's N of Items Alpha Alpha Based on Standardized Items .857 .935 4

Phisical Appearance

Reliability Statistics

Cronbach's Cronbach's N of Items Alpha Alpha Based on Standardized Items .797 .818 4

Buying Intention

Reliability Statistics

Cronbach's Cronbach's N of Items Alpha Alpha Based on Standardized Items

.806 .914 6

Appendix 5 R-Table