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The Effect of Brand Equity Towards Students Decision in Choosing President University As Their College (Study Case President University Students Batch 2012)

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The Effect of Brand Equity Towards Students Decision in Choosing President University As Their College (Study Case President University Students Batch 2012) THE EFFECT OF BRAND EQUITY TOWARDS STUDENTS DECISION IN CHOOSING PRESIDENT UNIVERSITY AS THEIR COLLEGE (STUDY CASE PRESIDENT UNIVERSITY STUDENTS BATCH 2012) By Muhammad Iqbal Hardiansyah 014200900101 A thesis presented to the Faculty of Economics President University in partial fulfillment of the requirements for Bachelor Degree in Economics Major in Management February 2013 i THESIS ADVISOR RECOMMENDATION LETTER This thesis entitled “THE EFFECT OF BRAND EQUITY TOWARDS STUDENTS DECISION IN CHOOSING PRESIDENT UNIVERSITY AS THEIR COLLEGE (STUDY CASE PRESIDENT UNIVERSITY STUDENTS BATCH 2012)” prepared and submitted by Muhammad Iqbal Hardiansyah in partial fulfillment of the requirements for the degree of Bachelor in the Faculty of Economics has been reviewed and found to have satisfied the requirements for a thesis fit to be examined. I therefore recommend this thesis for Oral Defense. Cikarang, Indonesia, February 11, 2013 Acknowledged by, Recommended by, Irfan Habsjah, MBA, CMA Drs.Agus B. Adidi, MA, CCA Head of Management Study Program Thesis Advisor i DECLARATION OF ORIGINALITY I declare that this thesis, entitled “THE EFFECT OF BRAND EQUITY TOWARDS STUDENTS DECISION IN CHOOSING PRESIDENT UNIVERSITY AS THEIR COLLEGE (STUDY CASE PRESIDENT UNIVERSITY STUDENTS BATCH 2012)” 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, February 11, 2013 Muhammad Iqbal Hardiansyah ii PANEL OF EXAMINERS APPROVAL SHEET The Panel of Examiners declare that the thesis entitled “THE EFFECT OF BRAND EQUITY TOWARDS STUDENTS DECISION IN CHOOSING PRESIDENT UNIVERSITY AS THEIR COLLEGE (STUDY CASE PRESIDENT UNIVERSITY STUDENTS BATCH 2012)” that was submitted by Muhammad Iqbal Hardiansyah majoring in Management from the Faculty of Economics was assessed and approved to have passed the Oral Examinations on February 6, 2013. Irfan Habsjah, MBA, CMA Chair – Panel of Examiners Dra. Genoveva, M.M Examiners I Drs.Agus B. Adidi, MA, CCA Examiners II iii ABSTRACT This study is motivated by the growing phenomenon about the increasing number of private university that as a consequences from the increasing number of students every year who are willing to continue their studies in higher education instituiton. That situation increase the competition between private universities that are offering various or even the similar study program, and service attributes. This situation will create the brand parity, where there are many products or services offered with identical benefits. Then the consumer will not based their purchase decision in quality, since they see the quality among that brand name is not much different, then it is required the strong brand equity to create the differentiation and competitive advantage between one brand with its competitors. Particularly this study analyze the effect of brand equity of President University that can support the students to make decision about their college. The problem of this study is “whether brand equity elements in President University can influence the students decision in choosing President University as their college”. This study is aimed to analyze the effect of brand equity elements, that consist of brand awareness, perceived quality, brand association, and brand loyalty towards the students decision in choosing President University as their college. After literature review and hypothesis development, the data was collected by questionnaire method using simple random sampling technique to 90 respondents. The population in this research is President University students batch 2012. Data was analyzed by using quantitative analysis. Quantitative analysis consist of validity and reliability test, classical assumption test, multiple regression analysis, hypothesis testing by T test and F test, and coefficient of determination (R2) analysis. Where buying decision is (Y), brand awareness is (X1), perceive quality (X2), brand association (X3), and brand loyalty is (X4). Hypothesis testing using T test shows that partially brand awareness, brand association, and brand loyalty has significant effect into the students decision, meanwhile perceived quality does not have significant effect. F test showed that all independent variable are adequate to test dependent variable, means that independent variable have a significant effect into dependent variable with F score is 32.056. Adjusted R2 of 0.583 shows that 58.3% of students decision is explained by all of independent variables in this research, and the other 41.7% is explained by other variables. Keywords: Students Decision, Brand Awareness, Perceived Quality, Brand Association, Brand Loyalty. iv ACKNOWLEDGEMENT All praise and gratitude writer prayed to Allah SWT for all the blessings and guidance and to Prophet Muhammad SAW, so I can complete the thesis entitled “THE EFFECT OF BRAND EQUITY TOWARDS STUDENTS DECISION IN CHOOSING PRESIDENT UNIVERSITY AS THEIR COLLEGE (STUDY CASE PRESIDENT UNIVERSITY STUDENTS BATCH 2012)” very well, both morally or spiritually so in this occasion the author would like to thank to: 1. My beloved parents, Muhari Syaiful Rokhman, and Yustini, who have fought hard, pay attention and prayer for me, and for the moral support they gave me over the years, until I can complete my studies at the President University. 2. Mr. Drs. Agus Burhanuddin Adidi., MA.CCA., as my advisor in this study that has give me a lot of time and attention to give me guidance and direction during the preparation process of this thesis. 3. For my beloved Rafika Nindia Putri, that has give me a lot of her support to me during my study in President University. Thank you very much for all of the helpful hand, that you, Mr. Uka Djukardie, and Mrs. Roni Banawati for me. 4. Special thanks to my best friends Zeflin Angga Winata, Antonius Tan, Rendy Martindo Yamin, Muhammad Yogi Rahardi Putra, Eri Rahman, Ridho D. Ikhwan, Agil Triyasmoko, Gianie Abdu, Hakim Sadik Alwi, Wenny Setianingtyas, for their kindness to accompanying me in this adventure of education process and lend me their laptop that makes me being able to finish this thesis. 5. For the respondents that give me their time to filled in the questionnaire. 6. All parties that can not be mentioned one by one by the writer, who has providing sincere prayers and support for up to the completion of this thesis. The authors realize that in writing this thesis is still far from perfectly. Therefore, all criticism and constructive suggestions will refine this thesis writing and useful for writers, readers, and for future research. v TABLE OF CONTENTS THESIS ADVISOR ................................................................................................ i PANEL OF EXAMINERS APPROVAL SHEET ............................................. iii ABSTRACT .......................................................................................................... iv ACKNOWLEDGEMENT .................................................................................... v TABLE OF CONTENTS ..................................................................................... vi TABLE LIST ........................................................................................................ ix FIGURE LIST ....................................................................................................... x CHAPTER I ........................................................................................................... 1 INTRODUCTION ................................................................................................. 1 1.1. Background of Study .......................................................................................... 2 1.2. Organization Profile ........................................................................................... 6 1.2.1. History ........................................................................................................ 6 1.2.2. Vision and Mission ..................................................................................... 7 1.2.3. Organization Chart ...................................................................................... 7 1.3. Problems Identification ...................................................................................... 8 1.4. Statement of the Problem ................................................................................... 9 1.5. Research Objectives ........................................................................................... 9 1.6. Significance of the Study ................................................................................. 10 1.7. Theoretical Framework .................................................................................... 10 1.8. Scope and Limitations of the Study .................................................................. 11 1.9. Assumptions and Hypothesis ........................................................................... 11 1.10. Definitions of Terms ........................................................................................ 12 1.11. Chapter Outline ................................................................................................ 13 CHAPTER II ....................................................................................................... 14 LITERATURE REVIEW ................................................................................... 14 2.1. Definition of Marketing ...................................................................................
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