THE EFFECT of CORPORATE BRANDING DIMENSIONS on CONSUMERS’ PRODUCT EVALUATION a Cross-Cultural Analysis (A Case Study of Unilever at President University)

THE EFFECT OF CORPORATE BRANDING DIMENSIONS ON CONSUMERS’ PRODUCT EVALUATION A Cross-cultural Analysis (A Case Study of Unilever at President University)

By Marvella ID No. 014200900089

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

January 2013

THESIS ADVISER

RECOMMENDATION LETTER

This thesis entitled “THE EFFECT OF CORPORATE BRANDING DIMENSIONS ON CONSUMERS’ PRODUCT EVALUATION. A Cross-cultural Analysis (A Case Study of Unilever at President University)” prepared and submitted by Marvella 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, December 12, 2012

Acknowledged by, Recommended by,

Irfan Habsjah, MBA,CMA T. Manivasugen, MBA Head of Management Study Program Thesis Advisor

DECLARATION OF ORIGINALITY

I declare that this thesis, entitled “THE EFFECT OF CORPORATE BRANDING DIMENSIONS ON CONSUMERS’ PRODUCT EVALUATION. A Cross-cultural Analysis (A Case Study of Unilever at President University)” 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, December 12, 2012

MARVELLA

PANEL OF EXAMINERS

APPROVAL SHEET

The Panel of Examiners declares that the thesis entitled “THE EFFECT OF CORPORATE BRANDING DIMENSIONS ON CONSUMERS’ PRODUCT EVALUATION. A Cross-cultural Analysis (A Case Study of Unilever at President University)” that was submitted by Marvella majoring in Management from the Faculty of Economics was assessed and approved to have passed the Oral Examinations on January 21, 2013.

Irfan Habsjah, MBA, CMA Chair – Panel of Examiners

Dr. Erwin Ramedhan Examiner 1

T. Manivasugen, MBA Examiner 2

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ABSTRACT

The question on ‘how important the corporate branding is’ appears in the researcher mind which gives further thought on how the corporate branding effects the public. The thought is poured into this research by shrinking the scope of research and observing the effect of corporate branding of multinational company, Unilever, to its consumers. The way of evaluating the corporate branding by consumers is from product brands that measuring the effect of corporate branding dimensions: corporate name, corporate image, corporate reputation and corporate loyalty. The narrowing scope-process gives the main problem in this research which is ‘How is the effect of corporate branding dimensions on consumers’ product evaluation?’ The researcher also extends the problem towards cross-culture analysis which incorporates Indonesian respondents to evaluate Unilever Indonesia’s corporate branding and Chinese respondents to evaluate Unilever China’s corporate branding. The researcher uses the quantitative method and the multiple regression tools to help in discovering the right hypothesis for the effects and then proceeds with the t-test in discovering the comparison of two cultures corporate branding. The conclusion of this research aims towards three corporate branding dimensions (corporate name, corporate reputation and corporate loyalty) of Unilever have given positive effects on the consumers’ evaluation. For the cross-culture analysis, the researcher discovers that the corporate name and corporate image have significant differences between Unilever Indonesia and Unilever China and vice versa for corporate reputation and corporate loyalty. This research proves that there are strong relationships between each of the three corporate branding dimensions (corporate name, corporate reputation and corporate loyalty)and the consumers’ product evaluation of Unilever’s corporate branding.

Keywords: Corporate branding, corporate name, corporate image, corporate reputation, corporate loyalty, consumers’ evaluation and FMCG.

ACKNOWLEDGEMENT

In this final subject of my study at President University, I would like to give my gratitude for God Almighty for giving me the chance to learn and develop myself for three and half years at President University.

In this opportunity, I would like to give my fullest gratitude for the ones who have done so much to me:

1. Mr. T. Manivasugen, MBA, my thesis advisor, for helping so much to finish my thesis and for being a great advisor not just during the thesis but also throughout my study 2. Accenture team who has given support to me in doing my thesis and entertain my days, especially Naek Y. Lumbatoruan who has given me the chance to learn at lot in Accenture and Budiono, my supervisor, who has been very cooperative and kindly given me permission to do my thesis consultation 3. Novita Elisa and Vini Trisanti my former roommates for always accompanies me day by day and supporting each other in doing thesis 4. Marketing team of President University who is always supporting me to have graduation as soon as possible 5. Paddle Pop team in Unilever who has given me the chance to do internship and create my understanding about Unilever and branding 6. Each member of Student Affairs 2010 who has taught me the important of being a team player and leader 7. Members of Student Affairs 2011 who has worked so much to create successful events in President University and made me learned on how important to develop people 8. Elvina, my senior and friend, for helping me on my thesis and teach me a lot and Muliadi Yuan who has advising me on my preparation in oral defense v

9. Nely Thamida and Natica Tannia, my best friends, who pass this moment together with doing thesis and sharing the blue and laughter 10. My aunt and uncle, who has supported and helped me during my study in President University and always taken care of me 11. Last but not least, my sister, my mom, my grandma, Magic and Walnut who always at home comforting me.

This thesis is created with full of effort to be excellence enough in helping others pursue the learning they needed.

TABLE OF CONTENTS

THESIS ADVISER RECOMMENDATION LETTER ...... i DECLARATION OF ORIGINALITY ...... ii PANEL OF EXAMINERS ...... iii ABSTRACT ...... iv ACKNOWLEDGEMENT ...... v TABLE OF CONTENTS ...... vii LIST OF TABLES ...... x LIST OF FIGURES ...... xi LIST OF ACRONYMS ...... xiii CHAPTER I INTRODUCTION ...... 1 1.1. Background of Study ...... 1 1.2. Company Profile ...... 3 1.2.1. Unilever ...... 3 1.2.1.1. Logo ...... 5 1.2.1.2. Vision & Mission ...... 7 1.2.1.3. PT. Unilever Indonesia, Tbk ...... 7 1.2.1.4. Unilever China (联合利华) ...... 9

1.3. Problem Identified ...... 10 1.4. Statement of Problem ...... 12 1.5. Research Objectives ...... 13 1.6. Significance of the Study ...... 15 1.7. Theoretical Framework ...... 16 1.8. Scope and Limitation of the Study ...... 18 1.9. Assumptions and Hypothesis ...... 18 1.10. Research Outlines ...... 20 1.11. Definition of Terms ...... 22 CHAPTER II LITERATURE REVIEW ...... 24 2.1. Brand and Branding ...... 24

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2.1.1. Attributes ...... 25 2.1.2. Benefits ...... 25 2.1.3. Attitudes ...... 28 2.2. Product Branding ...... 28 2.3. Corporate Branding ...... 30 2.3.1. Corporate Name ...... 31 2.3.2. Corporate Images ...... 32 2.3.3. Corporate Reputation ...... 32 2.3.4. Corporate Loyalty/Commitment ...... 33 2.4. Product and Corporate Brands Relationship ...... 34 2.4.1. Brand Architecture ...... 35 2.5. Consumers’ Product Evaluation ...... 41 2.6. FMCG (Fast Moving Consumer Goods) ...... 41 2.7. Data ...... 41 2.8. Sampling Method ...... 43 2.9. Hypothesis Testing ...... 44 2.9.1. Hypothesis Testing Procedure ...... 44 2.9.2. Test Statistics ...... 47 2.9.3. Types of Hypotheses ...... 48 CHAPTER III METHODOLOGY ...... 51 3.1. Research Method ...... 51 3.2. Research Framework ...... 52 3.3. Research Instruments ...... 54 3.3.1. Data Collection ...... 54 3.3.2. Scaling ...... 57 3.3.3. Validity Test ...... 57 3.3.4. Reliability Test ...... 59 3.3.5. Multiple Regression ...... 60 3.3.6. Correlation ...... 66 3.4. Sampling Design ...... 68 3.5. Testing the Hypothesis ...... 71 3.5.1. t-test ...... 71 viii

3.5.2. F-test ...... 74 3.5.3. p-value ...... 74 3.6. Limitations ...... 75 CHAPTER IV ANALYSIS OF DATA AND INTERPRETATION OF RESULTS ...... 77 4.1. Data Processing ...... 77 4.2. Result of Validity and Reliability Test ...... 77 4.2.1 Result of Validity Test ...... 77 4.2.2. Result of Reliability Test ...... 79 4.3. Data Interpretation ...... 81 4.3.1. Data Interpretation of Consumers’ Knowledge on Unilever ...... 81 4.3.2. Data Interpretation on Corporate Branding Dimensions ...... 85 4.3.2.1. Multiple Regressions and Hypotheses Testing ...... 85 4.3.2.2. Correlation ...... 94 CHAPTER V CONCLUSIONS AND RECOMMENDATIONS ...... 96 5.1. Conclusion ...... 96 5.2. Recommendation ...... 97 REFERENCES ...... 99 APPENDICES ...... 107

LIST OF TABLES

Table 2.1 Consequences of Decisions in Hypothesis Testing ...... 45

Table 3.1 Likert Five-Point Scale ...... 57

Table 4.1 Validity Test ...... 78

Table 4.2 Reliability Statistics ...... 79

Table 4.3 Reliability Test ...... 80

Table 4.4 Variance Inflationary Factor ...... 87

Table 4.5 Regression ANOVA ...... 90

Table 4.6 Regression Coefficients of Beta ...... 90

Table 4.7 Regression Coefficients of t-Test ...... 91

Table 4.8 Independent Sample Test of t-Test ...... 93

Table 4.9 Independent Sample Test of F-Test ...... 94

Table 4.10 Correlations ...... 95

LIST OF FIGURES

Figure 1.1 Unilever's Logo ...... 5

Figure 1.2 Theoretical Framework ...... 16

Figure 2.1 Brand Hierarchy ...... 34

Figure 2.2 Brand Relationship Spectrum ...... 37

Figure 2.3 Market Impact and Brand Hierarchy ...... 39

Figure 2.4 Types of Data ...... 42

Figure 2.5 Testing Hypothesis Basic Steps ...... 44

Figure 2.6 Acceptance and Rejection Area ...... 49

Figure 2.7 Upper-tailed Area ...... 50

Figure 2.8 Lower-tailed Area ...... 50

Figure 3.1 Research Framework ...... 52

Figure 3.2 Respondents’ Profile ...... 56

Figure 3.3 Normal Distributed Histogram...... 61

Figure 3.4 Normally Distributed Plot ...... 61

Figure 3.5 Normal Distributed Scatterplot ...... 62

Figure 3.6 Homoscedasticity Scatterplot ...... 63

Figure 3.7 Heteroscedasticity Scatterplot ...... 64

Figure 3.8 Several Types of Relationship between Variables ...... 65

Figure 3.9 Appearances of Correlation Values ...... 67

Figure 4.1 Respondents Knowledge on Unilever’s Existence ...... 81

Figure 4.2 Respondents Knowledge on Unilever’s Product ...... 82

Figure 4.3 Respondents Consumption on Unilever’s Product ...... 83

Figure 4.4 Numbers of Brands Used by Respondents ...... 84

Figure 4.5 Numbers of Respondents who still use Unilever’s Products ...... 85

Figure 4.6 Normality Histogram ...... 86

Figure 4.7 Normality Plot ...... 86

Figure 4.8 Normality Scatterplot ...... 87

Figure 4.9 Homoscedasticity Scatterplot ...... 89

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LIST OF ACRONYMS

CON: Corporate Name

CIM: Corporate Image

CRE: Corporate Reputation

CLO: Corporate Loyalty

OCBD: Overall Corporate Branding Dimensions

CPE: Consumers’ Product Evaluation

UK: United Kingdom

ULI: Unilever Indonesia

ULC: Unilever China

SPSS: Statistical Package for the Social Sciences

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CHAPTER I

INTRODUCTION

1.1. Background of Study

Nowadays, every big corporation has the endeavor to promote the corporate to public. They are trying to build public awareness right from its home country or even worldwide. The awareness is not just about the corporate name but also on the corporate image, the business(-es) it’s running, the contribution to society, how well it treats the environment, how prestigious the corporation is, how well it treats its people, etc. All competent criteria on a corporation try to be well-communicated to the public in order to gain high respect from public towards the corporation or even specific products. For instance, people worldwide have known Trump Corp. name simply from watching television in which the owner and CEO of Trump organization, Donald Trump, creates the show to get the best apprentice in America to work for him. The simple idea has created a big buzz of Trump’s name just in a while. Not just the Trump name is projected from the show but also the reputation of being the number one real estate in New York and having a high-class lifestyle in joining the Trump organization can be gained. With the development in global business, the use of corporate branding is becoming an important hurdle that multinationals have to address (Souiden et al, 2006). The action taken by the corporate nowadays was effected by researches done by marketing experts which have claimed that a strong corporate brand has a significant impact in creating positive consumer perceptions of existing products and new product extensions (e.g. Brown and Dacin, 1997; Ind, 1997).

Several multinationals have become aware of the importance of their names and are trying to establish and create a strong link between their corporate brand and product brand (Uehling, 2000).The corporate branding attached on the product name is very well-known on many industries, like electronics (e.g.

Samsung, Nokia, Panasonic, Sony, Apple); real estate (e.g. Ciputra Development Tbk, Lippo Group); Tobacco (e.g. HM Sampoerna, Tbk; Gudang Garam, Tbk), and more. Nevertheless, the corporate branding wasn’t well-recognized by the consumer goods industries. Indonesians know well of the Sunlight, Blue Band, and Lifebuoy brands, but barely know those are Unilever’s products. Same situation also happens on Pantene and Head and Shoulders shampoo brands that are actually P&G’s products. Until recently, the advertisements of the product are always followed by company’s name. Remembered from watching television, the end of the ads or bumper(an ending shot or frame occurs usually for 0.5-3seconds in an advertisement that usually showing the logo of the company or important message that needs to be highlight) there is always moment of mentioning or showing the company’s name and logo, for instance Sunsilk TV ads will always followed with the flag tag of “Unilever” at the up right corner and Pantene’s TV ads will always be followed by P&G scene at the end and voice over of “by P&G”.

From the previous research done by Souiden et al (2006) about corporate branding, it was supported with the theories by Yamaki (1990) that noted that most Japanese and Korean television advertisements tend to display corporate identity logos more frequently than the United States and West German companies. The Western companies tend to endorse their brands rather than the corporate brand (e.g. Procter & Gamble, Unilever) and on the other hand, eastern markets tend to get advertisements crowned with the corporate name (e.g. Ajinomoto, Kao) (Souiden et al, 2006). Nonetheless, the situation has been changing. The western companies have realized the importance of corporate branding to a multiplicity of stakeholders (i.e. customer attractiveness, investor confidence and staff motivation), a view that Balmer (2001) claim is now widely recognized in the United Kingdom (UK) by practicing managers, and now Unilever is one of them.

Unilever, a company from UK that just started the corporate branding through TV advertisement or commercial of all the products starting third quarter

2 in 2011 in Indonesia to promote the corporate brand. The action is putting the logo as a flag-tag(a label put in a frame or screen in the shape or form of flag. Usually put in the corner of the screen) on the up-right corner in all of the brands ads as seen in Indonesia ads (e.g. Dove Hair Fall ads in Youtube channel: http://www.youtube .com/watch?v=xZWdsrZ8IBo&feature=plcp). Moreover, this corporate branding is not only happened in Indonesia but in several countries as well, and China is one of them. The TV ads of Unilever China also do the same thing (e.g. Dove Bath Foam ads in Youtube channel: http://www.youtube.com/watch?v=L xBHUhyltzk), and a little diversification on make the Unilever branding on the TV ads bumper (e.g. Dove Hair Conditioner Treatment television ads posted on dove china website: http://www.dove.com.cn/cn/Tips-Topics-And-Tools/Videos /default.aspx).

From the above changing situation, it shows how important corporate branding effects the researcher to make a research on the consumers’ evaluation about Unilever corporate branding. The company has made such a big movement on corporate branding through its products since the product brands are more well-known than the company’s brand. The international expansion and consumer needs for reassurance about product quality and reliability result (Rajagopal and Sanchez, 2003) have influenced Unilever to promote the corporate brand. Strong international brands often have high visibility and are prime candidates for brand extension, especially for entry into new and emerging markets such as China result (Rajagopal and Sanchez, 2003).

1.2. Company Profile

1.2.1. Unilever

Unilever, an Anglo Dutch company runs consumer goods industry, was founded in 1929 when two major companies, Margarine Unie and Sunlight soap maker Lever Bros, merged (Paul Elshof, 2005). Margarine Unie grew through

3 mergers with others margarine companies in the 1920s. The Lever Bros is established in 1885by William Hesketh Lever. Lever established soap factories around the world, and had plantations in many Third World countries. In 1917, Lever began to diversify into foods, acquiring fish, ice cream and canned foods businesses (www.corporate.watch.org.uk). Unilever has been a survivor for over three centuries facing the economic boom, depression, world wars, changing consumer lifestyle and advances in technology. It shows how strong the Unilever brand has survived these years. Sir Lever’s idea in attaching with people’s life has grown into something bigger into a worldwide company and already has more than 400 brands worldwide with the intention to help people get more out of life – cutting the time spent on household chores, improving nutrition, enabling people to enjoy food and take care of their homes, their clothes and themselves(www.unilever.com).

Unilever group parents are located in Rotterdam, Unilever NV and London, Unilever PLC. Both Unilever NV and PLC are chaired by Michael Treschow (www.economist.com). Before Micahel Treschow, Unilever was chaired by Antony Burgmans that has dedicated his life in Unilever for 35 years until he retired in May 2007 (www.unilever.com) and Patrick Cescau served from April 2005 until December 31, 2008 (investing.businessweek.com).Unilever CEO, Paul Polman, was pointed in October 2008 and affective in 1st January 2009. Paul Polman comes from consumer goods industry background, P&G (worked for 27 years) and Nestle (as CFO for 2 years).

NV is incorporated under the laws of the Netherlands and PLC is incorporated under the laws of England and Wales. Since 1930 when the Unilever Group was formed, NV and PLC, together with their group companies, have operated as nearly as practicable as a single economic entity. However they remain separate legal entities with different shareholder constituencies and separate stock exchange listings. Shareholders cannot convert or exchange the shares of one for shares of the other. The Code of Business principles Unilever

4 will conduct its operations in accordance with internationally accepted principles of good corporate governance (The Governance of Unilever, 2013).

1.2.1.1. Logo

Figure 1.1 Unilever's Logo Source:http://www.unilever.com/aboutus/introductiontounilever/ourlogo/

Unilever’s Logo has deep meaning and value from it. The identity of Unilever can be easily recognized by the ‘U’ shape which stand for Unilever. The ‘U’ shape is created by 24 icons which represents something important to Unilever and has its own meaning (start from upper left, downward to the upper right):

 Sun: primary natural resource that symbolize vitality. It represents Sunlight, Flora, Slimfast, Omo (Rinso).  Bee: creation, pollination, hard work and bio-diversity that symbolize environmental challenges and opportunities  DNA: the double helix, the genetic blueprint of life and a symbol of bio-science. It’s the key of healthy life.  Palm tree: nurtured resources that symbolize paradise because of producing palm oil as well as many fruits - coconuts, bananas and dates.  Hair: symbol of beauty and looking good. Placed next to the flower it evokes cleanliness and fragrance; placed near the hand it suggests softness.

 Hand: symbol of sensitivity, care and need. It represents both skin and touch.  Flower: represents fragrance. When seen with the hand, it represents moisturizers or cream.  Bowl: a bowl of delicious-smelling food. It can also represent a ready meal, hot drink or soup.  Sauces or spreads: represents mixing or stirring. It suggests blending in flavor and adding taste.  Spoon: a symbol of nutrition, tasting and cooking.  Spice & Flavors: represents chili or fresh ingredients  Fish: represents food, sea or fresh water  Container: symbolizes packaging – a pot of cream associated with personal care product  Wave & liquids: Wave symbolizes cleanliness, freshness and vigour either as personal washing or as a laundry icon (with the shirt). Liquid is a reference to clean water and purity.  Cloth: represent fresh laundry and looking good  Heart: symbol of love, care and health  Frozen: symbol of freshness, the snowflake represents freezing. A transformational symbol  Tea: a plant or extract of a plant, such as tea. Also a symbol of growing and farming.  Particles: a reference to science, bubbles and fizz.  Recycle: part of Unilever’s commitment to sustainability  Lips: represent beauty, looking good and taste  Ice cream: a treat, pleasure and enjoyment  Bird: symbol of freedom, it suggest a relief from daily chores, and getting more out of life  Sparkle: Clean, healthy and sparkling and energy

1.2.1.2. Vision & Mission

Based on the Unilever global website (www.unilever.com), in 2009, Unilever’s determination has launched the Sustainable Living vision which is to create a better future everyday for Unilever’s consumers and the communities in which it operates. There are missions to express the Sustainable Living vision, such as:

 Doubling the size of Unilever while reducing the impact on the environment,  Working with suppliers, consumers and the retailers who sell Unilever’s brands to improve their sustainability credentials too,  Continuing provide a range of products to suit a wealth of consumers;  Leveraging Unilever’s global reach and inspiring people to take small, everyday action, which Unilever’s believed can help make a big difference to the world.

Becoming a green company that supports the “Save the Earth” action is the main goals for Unilever. Unilever takes the action not only through the company’s business process only but also through the people. With employees more than 171,000 in the end of 2011, Unilever encourages the employees to always take action on daily basis to support the sustainable living vision like using public transportation everyday to work and reducing the use of electricity. Unilever has the annual event of choosing the heroes from the employees who take action on promoting safe and healthy well-being as anappreciation towards implementing the Sustainable Living vision.

1.2.1.3. PT. Unilever Indonesia, Tbk

By implementing the sustainable living vision while doubling the business, PT. Unilever Indonesia, Tbk achieved third position as the largest

7 company on IDX by market capitalization (Levitt, 2012). PT. Unilever Indonesia was crowned as the Top 1 Powerful Company in Consumer Goods Industry in 2010 by Warta Ekonomi.

Based on Unilever Indonesia website (www.unilever.co.id), there are more than 6,000 employees throughout Indonesia who work for Unilever Indonesia. The company that was established on December 5, 1933has the priority to give the professional development, the life balance, and the ability to contribute equally as part of a diverse workforce in Unilever Indonesia. The Company seeks to manage and grow the business in a responsible and sustainable manner. Unilever Indonesia’s values and standards are set out in their Code of Business Principles (CoBP) which they fully embrace. The company shares these values and standards with all business partners including suppliers and distributors.

The Company owns six factories in Jababeka Industrial Estate, Cikarang, Bekasi and two factories in Rungkut Industrial Estate, Surabaya, East Java, with its head office in Jakarta. Its products consist of about 43 key brands and 1,000 SKUs (Stock Keeping Unit, the variant of a brand that is produced by the company)which are sold through a network of about 500 independent distributors covering hundreds of thousands of outlets throughout Indonesia (source: unilever.co.id). Products are distributed through its own central distribution centers, satellite warehouses, depots and other facilities.

As a socially responsible company, Unilever Indonesia has an extensive Corporate Social Responsibility (CSR) programme. The four pillars of its programmes are Environment, Nutrition, Hygiene and Sustainable Agriculture. Examples of their CSR programmes include Hand Washing Campaign with Soap (Lifebuoy), Dental and Oral Health Education Programme (Pepsodent), Traditional Food Conservation Programme (Bango), and the Campaign to Fight Hunger and Malnutrition to help malnourished Indonesian children (Blue Band).

Unilever Indonesia has grown so big starting from only one brand, Sunlight, in worldwide into 43 key brands in Indonesia. These brands are divided into 4 categories which are:

a. Personal Care that provides goods used for personal needs like shampoo, soap, lotion, etc.; b. Home Care that provides goods needed for our home like cleaning soap, water dispenser, etc.; c. Foods that helps in providing meals for daily needs like ketchup, spices, tea, etc.; d. Ice Cream that gives the excitement of food through cold ice cream and has 10 brands.

Those products are supported by many departments that provide services which are Marketing, Customer Development (Sales), Communication, Legal, Supply Chain, Finance, Human Resources and Information System.

1.2.1.4. Unilever China (联合利华)

Based on Unilever China website (www.unilever.com.cn) Unilever has been established since 80 years ago (1923) with the name of Lever Brothers soap Co., Ltd. It was located in Shanghai. Then the merged of Unie and Lever Bros effects the change of name into Unilever in China in 1986. One of Lever Bros’ products, Lux, was popular in China and used by elites (www.english.cri.cn). Since then, Unilver has set up 14 joint ventures (Investment Shanghai, 2005).The investment that was started with 1 billion dollars had such a big impact on China’s economy because 6,000 people were employed directly.

China is a big place for Unilever development. There is Unilever’s North Asia Regional headquarter in Shanghai managing the business in China mainland, Taiwan, Hong Kong, Korea and Japan. In 2000, Unilever has developed the Management and Research center in Shanghai, Hefei, Anhui and other places

9 which operate as production factory. One of the factories, located in Hefei Industrial Park is the world’s largest production base which has exports to 14 countries.

The social responsibility actions are also done by Unilever China. Unilever funded to establish 20 primary schools in China and regularly organize the interactive activities in there. The actions not only stop in primary schools but also funded tuition fee of 4 years college for 200 remote and poverty-stricken areas of outstanding students and still the support for education still available for scholarships to reward outstanding students. In addition, Unilever contributed a total of more than 10 million Yuan of the earthquake-stricken area in Sichuan in 2008.

The product brands from Unilever China are also well-known by the people. The product brands that are available in Indonesia are also available in Unilever China such as: Skippy, Dove, Lux, Knorr, Clear, Omo (Rinso), Lipton, Pond’s Comfort (Molto), Wall’s Ice Cream, Lynx (Axe), Vaseline, Rexona, Cif, Hazeline and China (Pepsodent).

1.3. Problem Identified

Corporate branding has such a big role on how consumers see the corporate and its products. The good image of a corporate may reflect on the products. However, the situation faced by Unilever, as one of the biggest companies in consumer goods is upside down; the brands produced and promoted by Unilever are well-known, massively consumed and already has a good connection with consumers like Knorr/Royco, Rinso, Lifebuoy, Clear, Dove, etc. but unfortunately, the name of Unilever was seldom heard of until the company started its corporate branding campaigns through the products’ advertisements and revolutionary packaging which in turn promotes not only the product’s brand but also the company’s logo (usually attached on the back of the packaging).Even

10 though the previous research done by Souiden, Kassim and Hong (2006) has proven that there is a positive relationship of corporate branding and consumers’ product evaluation in automobile industry, still the situation from Unilever might be different.

But somehow in recent situation, Unilever’s branding is still blurry. Many discussion and arguments talks about the hidden Unilever appearance like stated:

1. by John Daniels (http://sancibri.wordpress.com),“…as you said in the post, most people don’t know that Unilever owns both Dove and Axe.” (as Personal consumer) 2. by Leela Srinivasan (http://talent.linkedin.com),“In some markets, our target candidates don’t know the connection between our consumer brands and the company that is Unilever. Dove is very well known in North America, for example, but its association with Unilever isn’t as strong. As we work on further aligning our employer brand with our evolving corporate brand, we will reduce these disparities.” (as journalist concerned with employment posted in LinkedIn) 3. by Unilever.nl (http://www.unilever.nl/Images),”People don’t know much about Unilever – and they don’t easily connect the company with its brands. For many people we are invisible. Most don’t know what we stand for and see us as yet another multinational. (as public legal website in Netherland)

The positive relationship between the consumers with the brands is shown from the length of availability time of the brands in the market. For example, Blue Band that has reached 100 years, but it still hasn’t given any assurance that the corporate has the positive branding from the consumers’ perspective. From the researcher point of view, the impact of corporate branding on product brands supposes to help in giving positive image or reputation. The perception and judgment from the consumers might be able to be conveyed from the arrival of new brand or product to the market and the performance of the existence brands.

This research is to accommodate the opinion above to find the impact of Unilever corporate branding on the evaluation by the consumers on Unilever products brands.

In order to make the research becomes more thorough in the effect of corporate branding on the consumers’ product evaluation the research incorporates the two nationalities: Indonesian and Chinese. Hence, respondents from each nationality will evaluate the product of Unilever from their respective countries; Indonesian respondents will evaluate the products from Unilever Indonesia whereas Chinese respondents will evaluate the products from Unilever China. The researcher in turn verifies whether Unilever in both countries engage in activities that promote corporate branding. The researcher assumes that Unilever Indonesia has a better edge over Unilever China in promoting its corporate brand because Unilever Indonesia has more and varieties in the brands. The numbers of Unilever product’s brands in Indonesia is almost twice the numbers of brands in China even the establishment of Unilever China is one year longer with such a rapid development. The record of having the world’s largest factory of Unilever located in China and the headquarter controls North Asia located in China didn’t give any corporate awareness in the market. The impact might be big on business people but not massively in the market. The name of Unilever Indonesia should have bigger awareness than in China. Even both countries’ have well-known and mature brands in each market.

1.4. Statement of Problem

Referring to the explanation from the identified problem above, the researcher has the intention to find the answers to the question as follow: “How is the effect of corporate branding dimensions on consumers’ product evaluation?”

In answering above question, the researcher needs to identify the answers for questions below:

1. Does each corporate branding dimension (name, image, reputation, loyalty) have an effect on consumers’ product evaluation?

2. Do the overall corporate branding dimensions have an effect on consumers’ product evaluation?

3. Is the effect of each corporate branding dimension on consumers’ product evaluation greater for Unilever Indonesia than that of Unilever China?

4. Is the effect of overall corporate branding dimensions on consumers’ product evaluation greater for Unilever Indonesia than that of Unilever China?

1.5. Research Objectives

The objective of this research is to know the corporate branding of Unilever from consumers’ evaluation through the products or brands. The researcher wants to know whether:

 There is a positive effect of each corporate branding dimension (such as CON, CIM, CRE, CLO) on the consumers’ product evaluation (CPE) or it is irreversible. For example the relationship and effect of CON to CPE is positive or the relationship and effect of CRE to CPE is negative;

 To find out whether the overall corporate branding dimensions (OCBD includes CON, CIM, CRE, CLO) have relationship with CPE and whether they have a positive effect on CPE or not.

Unilever has been introduced to the world for almost a hundred years and some brands have been attached to people for over 100 years. So if there is a dimension from Unilever branding through the product has a negative effect, the dimension that should be aware of and overcome is cleared enough.

Nevertheless, the research does not stop until the effect of corporate branding to consumers’ product evaluation. It continues to the comparison between Unilever Indonesia and Unilever China branding which is also part of the objective. The comparison is made to know whether the Unilever has the same or different branding effect on the consumers’ evaluation even it appears in different countries. Because talking about two countries, it is also talking about two different culture, different traditions, different behaviors and different consumption. The brands available on China market and Indonesia market may be varied in numbers but the most powerful brands still exists in both countries (some may come with different names: Omo and Rinso) like Dove, Lux, Clear, etc.

Furthermore, the research on the cross-cultural analysis is for the two countries which are Indonesia and China about Unilever’s branding in both countries through their products or brands. The researcher also wants to find out about:

 Which country has a greater effect of each Unilever corporate branding dimensions (such as CON, CIM, CRE, CLO) on the consumers’ product evaluation (CPE), like whether Unilever Indonesia (ULI) has greater corporate name (CON) branding through the products rather than Unilever China (ULC), or ULC has greater CIM branding on CPE rather than ULI, and so on;

 Which country has greater effect of overall Unilever corporate branding dimensions (OCBD) on the CPE, like ULI has greater effect on corporate branding on CPE rather than ULC or vice versa.

1.6. Significance of the Study

Regarding the objective of the research, this research is meant to be able to give benefit and contribution both in academic and professional practices:

1. This research will contribute as well as enhance the previous theories that discovered corporate branding dimensions effects on consumers’ product evaluation, even though the researcher’s work is still lack of experience and perfection. However, more or less the results of this research are hoped to help the readers understand better the applicability of the theories.

2. The research is expected to contribute for the development of Unilever in respective countries. The researcher hopes that the results obtained from this research can be utilized by the corporate public relations and the management to decide how effective their corporate branding is.

3. The research will be a reference for readers in general, students and researchers on a particular interest. They will understand all the theories used in this research and their impacts to the company.

1.7. Theoretical Framework

Corporate Branding Dimensions (OCBD) H1,10

Corporate Name (X1) H2,6 Consumers’ Product Corporate Image (X2) H3,7 Evaluation (Y)

H4,8 Corporate Reputation (X3) H5,9

Corporate Loyalty (X4 )

Figure 1.2 Theoretical Framework Source: Developed by researcher

From the figure above, it shows the variables and the connections of variables that will be found in this research. The researcher has determined the independent variables for this research are X1: Corporate Name (CON), X2:

Corporate Image (CIM), X3: Corporate Reputation (CRE), and X4: Corporate Loyalty/Commitment (CLO). All these four independent variables will be connected to the dependent variable solely. The dependent variable is the Consumers’ Product Evaluation (CPE). In this research, the researcher will find the relationship of each CON, CIM, CRE and CLO towards CPE and the OCBD to the CPE also with comparisons of the independent variables between those of Unilever Indonesia and Unilever China.

The first independent variable X1, corporate name (CON) is about the name of the company itself conveys in public is generating recognition or not. Either the company produces a well-known product without the corporate name on it or the company name uses in the product like Coca Cola. It is also about the product that carries both the company name and its generic name like Honda Jazz. The corporate branding through name is really helping in communicating the company existence in the market. Somehow, in consumer goods industry the 16 using of corporate name on the brands is not feasible since the brand name should be more related to the use of the product. That’s why the name of the product brands in Unilever does not use in the brands name. The company manages this situation by putting the Unilever logo and name on the packaging of each brand in hope that it would be helpful.

Corporate image (CIM), the second independent variable X2, is about the image or how the consumers see the company. It is what the company portrays exactly that the perception consumers get through the products. It’s like showing the company is innovative, successful, persuasive, and always pleased the consumers or not. In this research, the image that is mostly given by Unilever to the consumers may be about the innovative and well-fit brands to the consumers. The products produced are based on the consumers’ needs starting from physical needs to the emotional needs, from the looks to the fun.

In addition, Unilever tries to communicate the sustainable living vision which is supporting green peace actions and the social responsibility programs runs by the brands like Lifebuoy that teach elementary students to wash their hands. This will be conveys through the corporate branding dimension, Corporate reputation (CRE) as the third independent variable X3. The reputation is also about the quality of the product produces, the performance of the company itself and the fulfillment of what company has promised on the product. Corporate reputation is established in long term period with harmonious series of programs.

The last independent variable X4 is the corporate commitment or loyalty (CLO). The fourth independent variable is about how loyal the consumer to the product or commit to always use the product. The loyalty is developed as impact of always using the product produces by the company like using Unilever product only. The position of the product in the market also gives part of corporate loyalty like is the product can overtake the competitors. Most of Unilever products that have survived for many years have gained the consumer loyalty, but there is a possibility for the consumer to choose other companies’ product instead of Unilever’s if it is more suitable to the consumers.

1.8. Scope and Limitation of the Study

1. The research is done with the evaluation of Unilever, as a multinational company runs in consumer goods industry that is known worldwide for the brands. Consequently, the result from the research might not be reliable for other corporations or other industries.

2. The questionnaire distributed only to President University students living in President University Student Housing despite the batch and gender.

3. The questionnaire will be distributed to students from China and Indonesia living in President University Student Housing with the respective to each Unilever available in their own country. Chinese students will evaluate Unilever China branding and Indonesian students will evaluate Unilever Indonesia branding.

1.9. Assumptions and Hypothesis

Based on the problems described in this first chapter, the researcher wants to assume that each and overall of the dimensions (CON, CIM, CRE, and CLO) has the effect on consumer’s product evaluation. Consumer evaluates the Corporate Branding (OCBD) of Unilever in each own country through its product or brands.

1. H01: Overall corporate branding dimensions (OCBD) has no effect on consumers’ product evaluation (CPE)

HA1: Overall corporate branding dimensions (OCBD) has an effect on consumers’ product evaluation (CPE)

2. H02: Corporate name (CON) has no effect on consumers’ product evaluation (CPE)

HA2: Corporate name (CON) has an effect on consumers’ product evaluation (CPE)

3. H03: Corporate image (CIM) has no effect on consumers’ product evaluation (CPE)

HA3: Corporate image (CIM) has an effect on consumers’ product evaluation (CPE)

4. H04: Corporate reputation (CRE) has no effect on consumers’ product evaluation (CPE)

HA4: Corporate reputation (CRE) has an effect on consumers’ product evaluation (CPE)

5. H05: Corporate commitment/loyalty (CLO) has no effect on consumers’ product evaluation (CPE)

HA5: Corporate commitment/loyalty (CLO) has an effect on consumers’ product evaluation (CPE)

The evaluation of Unilever’s corporate branding is derived from Indonesian and Chinese respondents. The researcher assumes that Unilever Indonesia has greater effect than Unilever China on corporate branding dimensions since the number of brands or products are different and the impacts reflects on promotion of the products and corporate.

6. H06: The effect of corporate name (CON) on consumers’ product evaluation (CPE) is not greater for Unilever Indonesia than that of Unilever China;

CONULI≤ CONULC

HA6: The effect of corporate name (CON) on consumers’ product evaluation (CPE) is greater for Unilever Indonesia than that of Unilever China;

CONULI> CONULC

7. H07: The effect of corporate image (CIM) on consumers’ product evaluation (CPE) is not greater for Unilever Indonesia than that of Unilever China;

CIMULI≤ CIMULC

HA7: The effect of corporate image (CIM) on consumers’ product evaluation (CPE) is greater for Unilever Indonesia than that of Unilever China;

CIMULI> CIMULC

8. H08: The effect of corporate reputation (CRE) on consumers’ product evaluation (CPE) is not greater for Unilever Indonesia than that of

Unilever China; CREULI≤ CREULC

HA8: The effect of corporate reputation(CRE) on consumers’ product evaluation (CPE) is greater for Unilever Indonesia than that of Unilever

China; CREULI> CREULC

9. H09: The effect of corporate commitment/loyalty (CLO) on consumers’ product evaluation (CPE) is not greater for Unilever Indonesia than that of

Unilever China; CLOULI≤ CLOULC

HA9: The effect of corporate commitment/loyalty (CLO) on consumers’ product evaluation (CPE) is greater for Unilever Indonesia than that of

Unilever China; CLOULI> CLOULC

10. H010: The effect of overall corporate branding dimensions on consumers’ product evaluation (CPE)is not greater for Unilever Indonesia than that

of Unilever China; CPEULI≤ CPEULC

HA10: The effect of overall corporate branding dimensions on consumers’ product evaluation (CPE) is greater for Unilever Indonesia than that of

Unilever China; CPEULI> CPEULC

1.10. Research Outlines

CHAPTER 1 – The introduction of the whole research is in this chapter. The details of why the research chooses to write and research and the corporate branding topic specific for Unilever. This chapter also identifies what are the problems from this research and what the researcher want to find from this problem. The information about what are the independents variables from

20 corporate branding dimensions used and dependent variable which is consumers’ product evaluation is being described in this chapter. The hypothesis derived from the theory also being stated which later will be used to be as the options for the result in chapter 4. The reader can get the understanding of terms used in this research fully from the introduction chapter. This chapter is created to give the big picture of this research to make sure the readers will understand how the research is started.

CHAPTER 2–The previous studies or theories about the effect of corporate branding dimensions on consumers’ product evaluation will be discussed in this chapter. The supported theories and literature will be mentioned in here to explained in details what are corporate branding, each of the dimensions, the consumers’ evaluation towards product. This chapter will give thorough understanding about the topic that is taken in this research for the reader.

CHAPTER 3 – Research methodology will be detailed in this chapter. The use of quantitative method in this research will be completed with the research instruments such as questionnaire, SPSS software and others. The data for the research is gathering from distributing the questionnaire to target respondents in President University Student Housing with Chinese and Indonesians nationalities. The questionnaire gathered should be in minimum numbers of sample that is counted in this chapter 3 as well by the researcher. The formula used in this research is multiple regression and hypothesis testing formula to make sure that the research objective is achieved.

CHAPTER 4 – The part where the data is being identified and process to gain specific result to support the research. First there is a pre-test questionnaire to test the validity and reliability of the questionnaire. Then the questionnaire with valid and reliable statements will be distributed to the target respondents and then the data will be calculated by SPSS software and the output will be defined in this chapter. The researcher will give explanation on the data processing and each

21 result related with the research hypothesis to give detail understanding on how the result is related with this research.

CHAPTER 5 – The conclusion stated in chapter 5 derives from chapter 4 results. Recommendation will be written in this chapter with researcher’s opinion on how to overcome if there is a negative effect or how to improve the positive effect from the results from chapter 4

1.11. Definition of Terms

Brand: the product with specific identity

Branding: the action to do identification of a certain thing to be associated with the customer. Branding is usually used in an advertisement, specific design to pull out the identity of a product or corporate.

Consumer: the person who uses or consumes the product

Consumers’ product evaluation: the assessment of value in a product made by consumers

Consumer goods: the goods use or consume by consumer

Corporate: company; a group of people doing business legally

Corporate Branding: the action to do identification of a corporate to be known by public or market

Corporate Image: the perspective made by public on corporate

Corporate Loyalty: the loyalty of consumer to purchase and consume the company product after first trial

Corporate Name: name of the corporate

Corporate Reputation: the opinion or concept about the company’s performance or action

Product: something made or created by manufactures; goods

CHAPTER II

LITERATURE REVIEW

2.1. Brand and Branding

Chakrapani (1999) defines a brand as more than a firm’s identification tag on a product. The purpose of branding is to create an identity for the product being marketed. He also defines branding as the process of creating brand elements that can be assigned a meaning, which in turn creates brand equity. Brand ‘meaning’ is created by associating certain product elements with the brand being marketed. The meaning is the way a given brand is different from its competitors (Chakrapani, 1999). In simple definition, brand is the identification tag, identity and elements; in addition, branding is the way to identify a product by a certain party to be acknowledged by public.

A performance of a brand usually been measured by Brand Image and Brand associations. Keller’s (1993:3) definition of brand image as “perception about a brand as reflected by the brand associations held in consumer memory”. A simpler definition by Korchia could be “all that a consumer can possibly associate with a particular brand”. From Keller’s notes, Korchia pointed out associations can vary in strength (which makes information more accessible), favorability, and uniqueness (the degree to which this association is not shared with other competing brands). Brand associations include three types: Attributes, Attitudes and Benefits (Chakrapani, 1999).

2.1.1. Attributes

Based on Journal by Stephen L. Sondoh 2007 in The Effect of Brand Image on Overall Satisfaction and Loyalty Intention in The Context of Color Cosmetic, stated that for Keller (1993) attributes are:

“Descriptive features that characterized a product or service – what a consumer thought the product or service is or has what is involved with its purchase or consumption”

Attributes can be classified (Sondoh, 2007, pg.87) into:

1. Product-related attributes Product-related attributes refer to the ingredients necessary for performing the product or service function sought by consumers. 2. Non product-related attributes Non product-related attributes refer to the external aspects of the product or services that relate to its purchase or consumption. E.g. price, packaging or product appearance information, user and usage imagery.

2.1.2. Benefits

As derived from Park, et al (1986) theory about brand benefits, Chakrapani (199, pg. 3-4) categories and mentions brand benefits as follow:

“1. Functional benefits

These are tangible features of a product or service. These features are expected to provide a solution to some ‘problem’ faced by a consumer or enhances some aspect of a consumer’s life: shoes protect one’s feet; a cell phone keeps you in touch when you are on the move and, a watch shows you the time. Some brands have strong functional

25 associations (e.g. Xerox with copying, IBM with computers and Microsoft with software) and others less so.

Strong functional associations are desirable to have. However, when functional associations are too strong, they have the disadvantage of making that brand name a generic one. As a result, the firm stands to lose its claim to the exclusive use of the brand name itself (To illustrate, Alladin Industries used the term Thermos to identify its product, although it is a trade name of the American Thermos Product Company. In a 1962 court case, Thermos was deemed to be a term usable in a generic fashion, resulting in the loss of exclusively, the essence of branding. In 1975, Teflon faced a similar battle).

Firms strongly resist such loss of exclusivity since a brand name applied to functionality rather than to the brand may result in the erosion of brand equity from an economic point of view.

2. Symbolic benefits

Symbolic benefits tend to be non-product related. These tend to be the ‘meaning’ consumers attach to a brand: prestigious car, exclusive club, or impressive neighborhood. Expensive brands deliberately promote symbolic benefits. For instance, American Express offers its platinum card only ‘by invitation’; you can visit the sales offices of some high-end condominiums ‘only by appointment’.

Symbolic benefits aimed at a consumer’s need for social approval, self-esteem, and quest for the ‘best things in life’. Because symbolic benefits are not necessarily related to functional benefits, strong symbolic imagery, once created, can command a huge premium. For instance, an exclusive perfume can be priced 100 times higher than a run-of-the-mill perfume.

A brand with high symbolic benefits can become a ‘badge’ product. (Badge product is a product which is assumed to make a statement’ about the person using it. For instance, a person who prefers Prada can see himself or herself as more modern and younger compared to someone using other designers’ products.)

For commodity product, if brands putted at one extreme continuum, ‘badge’ products will be at the other end of the continuum. Products at the commodity and are perfectly substitutable, while products at the ‘badge’ end are more difficult to substitute in extreme cases they are not substitutable at all – a consumer may not accept a substitute brand if the preferred brand is not available.

This makes symbolic benefits an extremely important part of brand equity for high-priced products. There is some evidence to show that not only are consumers willing to pay a high price, but one of the features that makes many products exclusive, is high price.

3. Experiential benefits

Experiential benefits are those experienced by the user as a result of usage. They can be both product as well as non-product related. Cottonelle is ‘soft’ – it can be a product feature as well as image created by advertisements. A consumer can experience a beer as ‘smooth’ because of its lower alcohol content or because of the image projected in its communications campaign.

In many cases, consumers cannot reliably be expected to notice minor sensory-based differences or improvements in products. It is for this reason that minor improvements and features are highlighted and promoted by marketers.

2.1.3. Attitudes

Referred to Keller’s (1993) theory on brand attitudes, Chakrapani elaborates brand attitudes as attitudes refer to overall evaluation of a brand. They are abstractions based on attributes and beliefs. Attitudes are not always easy to measure but brand choice depends on attitudes.

Consider an insurance company issuing a policy. A given policy has certain features (attributes) and the company may be perceived to be dependable and to provide value for money (image). Based on these, a consumer may come to some conclusions about the policy being offered (attitudes). These attitudes determine choice – whether to buy the policy or not.

2.2. Product Branding

Elaborated by Shamma and Hassan (2011, pg 12), product branding includes all the tangible and intangible associations that customers have about a product brand. Product branding could include brand quality, brand price, brand features, brand personality and brand image. Product brands target customers, and are likely to create associations about specific products. Thus, marketers’ efforts focus on developing marketing activities that will deliver value to a brand which will enhance its image from the customers’ perspective.

Since branding is important to differentiate a certain product from similar products, marketers and practitioners are concerned more on branding a product. However, marketers and practitioners are challenged when it comes to assessing a measurable value for a brand. Aaker (1996) proposed the following dimensions as the major asset categories in determining brand equity: (1) brand name awareness (2) brand loyalty (3) perceived quality and (4) brand associations. This determinant is measured based on consumer-approach.

Keller (1993) defined customer-based brand equity as:

“The differential effect of brand knowledge on consumer response to the marketing of the brand.”

Keller highlighted brand knowledge reflecting the degree of brand awareness and image and brand response, reflecting consumers’ perceptions, preferences and behavior resulted from the marketing mix activities.

Another perspective for measuring product brand equity proposed by Shamma and Hassan (2011) is commonly referred to as the financial accounting perspective. This perspective evaluates brands by assessing their impact on financial performance indicators such as revenues and profits. Simon and Sullivan (1993) assess brand equity as

“The incremental discounted cash flows that would result from a product having its brand name in comparison with what would accrue of the same product did not have the brand name.”

Companies such as Financial World (the oldest magazine since 1988 from United States which runs in business sector) and Interbrand (World’s leading consultant for global brand) assess values in brands using this financial-based perspective. Future product earnings are based on historical information about brand performance.

While evaluating brands on the basis of the value of a product is important, yet existing measures do not account for non-product and non- customer related factors that may affect the value of a brand. Previous empirical research has identified a strong link between corporate associations and product brand evaluation (e.g. Brown &Dacin, 1997; Berens et al, 2005). Also, other non- customer stakeholders’ perspectives greatly influence the value of a brand. For example, the general public’s perceptions about corporate response to social events such as Hurricane Katrina greatly affected the reputation of companies such as Procter and Gamble (Alsop, 2005). This phenomenon highlights the importance that marketers should emphasize in integrating stakeholders’ perception about brands and assessing their impact and performance.

2.3. Corporate Branding

Aside from product branding, corporate branding has been a huge concerned for a corporate nowadays. Therefore, the role to promoting corporate branding not only comes from marketers but also from the internal management. From the consumers’ side, the corporate branding has giving the role on their behavior. Consumers become more knowledgeable about products and corporations as a whole; such as employee working environment, social responsibility and community involvement (Shamma and Hassan, 2011). A corporate brand is

“more than just the outward manifestation of an organization, its name, logo and visual representation – it is the core of the values that defines it (Ind, 2007)”

Not too different from product branding, corporate branding has the measurements to assess the value of corporate branding. In consumer goods industries dominantly the corporate branding is assessed through the product element. Though products have a lot of things to offer the corporate branding, other elements have big influence to corporate branding. Corporate branding is not tied to one specific product, but integrates a corporation’s common product attributes and benefits, relationships with people, social values and programs and corporate credibility (Keller, 1998).

The integration of corporate branding on the intangible elements (such as social responsibility, employee relations and corporate trust) that are not directly associated with the product has its own positive impact on various corporate dimensions. A strong corporate brand is thought to enable a company to attract qualified employee, attract capital, select suppliers and achieve significant financial performance (Beatty and Ritter, 1986; Weiss et al, 1999; Rao, 1994; Cameli and Tishchler, 2005; Shamma and Hassan, 2011). That’s why this corporate branding is not only targeted to consumers but also to multiple audiences such as employees, shareholders, regulators, community and suppliers.

2.3.1. Corporate Name

As one of brand attributes components, brand name has come to be the most important feature as an extra mark added to the core product differentiation (Khasawneh and Hasouneh, 2010). Defined by Kevin Keller (2003) brand name used

“to distinguish the product of one producer of one producer from those of another by creating a certain among of awareness, reputation, prominence, and so on in the market place”.

Moreover, Adcock, D. et al( 2001) specified that

“The most obvious manifestation of a brand is the name and this is then the trigger for all the associations related to the brand. Brand names give products an identity among customers and intermediaries alike, distinguishing them from standard commodities, and particularly from competitor products.”

In addition, Hart and Murphy (1998) has gone further to dig into ‘brand’ and identified that brand name, from both corporate brand name and product brand name, embraced the product of the brands which are having added-value, well-priced, credible, and offering good and consistent quality to consumers. The importance of choosing the unique name for both corporate and product and embrace it in public eyes has been a compulsory for branding decision. In this research, the role of brand name will be evaluated by the familiarity and recognition through products’ evaluation to identify how well-known the brand name in consumers’ eyes.

Corporate name (brand) recognition/familiarity (Kowalczyk and Pawlish, 2002), measures how widely known the corporate brand is and to what extend this familiarity affects consumer product evaluation. The corporate brand can add value to its product and the association of the corporate and product brands will be beneficial to both the corporate and the brand and would, in turn, enhance consumer awareness of both the corporation and its product (Souiden et al, 2006).

2.3.2. Corporate Images

Corporate image is described as the overall impression made on the minds of the public about a firm (Barick and Kotler, 1991; Ditcher, 1985). It is the immediate mental picture that audiences have of an organization. It is important to note that though corporate image is often interchangeable with corporate identity (Hsieh et al, 2004), some scholars strongly argue that corporate identity and corporate image are two different concepts (Balmer, 1998; Christensen and Askegaard, 2001). The former refers to the reality or facts concerning the company while the latter refers to the perception held by stakeholders of the company. Since the current study analyzes consumers’ perception of the corporation, the concern will be confined to corporate image. Despite the lack of empirical evidence, there is some agreement that a good corporate image can positively affect a firm’s sales and market share (Shapiro, 1982) and the establishment and maintenance of a loyal relationship with customers (Andreassen and Lindestad, 1998; Nguyen and Leblanc, 2001; Souiden et al, 2006).

As reported by Keller and Aaker (1997), a strong corporate image can be used to increase communication efficiency. Hsieh et al. (2004) conclude that corporate image can affect consumer behavior. Likewise, Andreassen and Lindestad (1998) report that corporate image serves as an important factor influencing the perception of quality, consumers’ evalution of satisfaction and customer loyalty. Supporting this view, de Ruyter and Wetzels (2000) state that the corporate image is an information cue that consumers use to judge matters such as credibility, perceived quality and purchase intention (Souiden et al, 2006).

2.3.3. Corporate Reputation

Corporate reputation has a unique meaning and is more long lasting than corporate image. Importantly, it requires a constantly harmonious series of programmes (Melewar, 2003) and should be thoroughly crafted in line with the

32 strategy development of an organization. Reputation should thus be seen as “a key source of distinctiveness” to gain competitive advantage in the changing business environment (Formbrun and Van Riel, 2004:5;Abdullah, 2009).

However, some scholars from different perspectives question the importance of image or identity as a symbol or illustration that portrays the good reputation of organisations to the public, Thus, more realistic models of reputation have been proposed. A good image of organisation alone is not enough. Understanding the competencies trait of the corporations may yield distinctiveness to achieve a truly good reputation (Podnar, 2004:378). Davis et al. (2001) argue for the importance of corporate personality as a key reputation construct to measure both the image and identity of organisations from the perspective of organizational behavior (Abdullah, 2009: 172).

Fombrun (1996) adds that the corporate reputation is the overall standard in which a company is held ny its constituents. Marketers believe that one of the major factors that strongly affect consumer purchase decisions is consumer perception of a firm’s role in society and how it treats its stakeholders (Kowalczy and Pawlish, 2002). Consumers want to know more not only about the company’s products, but also about the company itself. Gray and Balmer (1998) argue that the corporation’s reputation can influence the willingness of consumers to either provide or withhold support from the company and its products (Souiden et al, 2006)

2.3.4. Corporate Loyalty/Commitment

First, there should be a distinction between corporate commitment/loyalty and brand loyalty. Corporate loyalty/commitment can lead to consumer loyalty for all products. Commitment is defined as a

“psychological state generated by an individual’s perceptions, beliefs and emotions which provoke the willingness or the intention of developing and maintaining a stable and durable relationship” (Iniesta, 2000: 179).

The impact of commitment on companies’ business activities are reported in many studies. Rust et al. (1995) show that an increase in customers’ satisfaction leads to an increase in their loyalty to the firm and that this loyalty leads to an increase in their purchases from the company. Thus, there is strong relationship between consumer commitment to a company and the share of purchase from the company. Supporting this opinion, Iniesta and Sanchez (2002) report that commitment has become a major objective for many corporations since it can be used as a key strategic factor, such as in market segmentation. The knowledge of the customer profiles for each level of commitment would enable the firm to design differentiated marketing programs that aim to either maintain and increase commitment or obtain the commitment of those who are not yet committed to the firm (Iniesta and Sanchez, 2002; Souiden et al, 2006).

2.4. Product and Corporate Brands Relationship

Figure 2.1 Brand Hierarchy Source: Idris Mootee (2007) in Brand Masterclass Week Four

From the Figure 2.1, it shows the hierarchy of the brands as:

1. Master Brand/Mother Brand The primary frame of reference, which is stretched by sub-brands that add attribute associations, application associations, a signal of

breakthrough newness and a brand personality (Rajagopal and Sanchez, 2003). 2. Sub-brands Brands connected to a mother brand and augment or modify the associations of that mother brands. When both the mother brand and the sub-brand have major driver roles, it is considered a co-driver situation (Rajagopal and Sanchez, 2003). 3. Product Brands Brand connected to a specific product without having any name association with mother brand 4. Stand Alone Brands Wholly owned, non core business, minimal benefit to the brand (www.newcastle.edu.au)

The relationship between corporate brand and product brand is explained by Rajagopal and Romula Sanchez (2003) in the Conceptual analysis of brand architecture and relationships within product categories.

2.4.1. Brand Architecture

The brand architecture is the organizing structure of the brand portfolio that specifies brand roles and the nature of relationships between brands. Contemporary theories state that brand architecture is based on the efficacy of the attributes, derived advantages and brand system emerging in relation to the buying power of the customer. The brand architecture helps in the revival, retention or merger of brands that have low market impact and tend to cause organizational conflicts with the strong brands of the company. This process of brand building categorically determines the performance of the brand and allows the brand manager to choose the specific strategy position for the brand in the market (Aaker and Keller, 1990). The brand architecture can be used to rejuvenate weak or dormant brands and to launch new brands. The architecture of

35 brands, however, also encompasses the management aspects of the launched brands in the market.

A study conducted by Laforet and Saundess (1994) revealed three major patterns of brand architecture:

1. Corporate-dominant Within corporate-dominant brand architectures, brands have been largely built on the basis of organizational standing in the market, irrespective of the product-mix strategies and related variables that have significant impact on the brand performance in the competitive environment. 2. Product-dominant Within a product-dominant architecture, branding is done according to the AATAR model C: attributes, awareness, trial, availability and repeat model, and technology. 3. Hybrid or mixed structures The hybrid pattern of brand architecture considers the organizational image as well as the product pattern factors to determine the brand- building strategy. Such a pattern is followed by the well-established corporate houses with a strong brand community such as Procter & Gamble (P&G), Unilever, Braun (Germany) and Phillips (Holland).

The following discusses a powerful brand architecture tool, the brand relationship spectrum, as shown in Figure 2.1. It is intended to help brand architecture strategies to employ, with insight and subtlety, sub-brands and endorsed brands. The categories of brands play significant roles in process of brand architecture for a company by creating coherence and effectiveness, allowing brands to stretch across the products and markets, stimulating the purchase decisions by brand drivers and targeting market niches and benefit positioning.

Figure 2.2 Brand Relationship Spectrum Source: Rajagopal and Sanchez (2003) Pg.238

The role of the driver reflects the degree to which a brand drives the purchase decision and experience of consumers on the usage of the product. From the Figure 2.1, Rajagopal and Sanchez categorized the brand as: 1. House of brands A strategy involves an independent set of stand-alone brands, each maximizing the impact on a market. The house of brands strategy, however, clearly positions brands on functional benefits and to dominate niche segments. Targeting niche markets with functional benefit positions is the main reason for using a house of brands strategy. The brands in the house of brands are independent brands. House of brands has sub-categorized/sub-strategy as:  Independent Having the benefit to maximizing market impact (e.g. Unilever, P&G)  Shadow Endorser A shadow endorser brand is not connected visibly to the endorsed brand, but many consumers know about the link. This sub- 37

category in the house of brands strategy provides some of the advantages of having a known organization backing the brand, while minimizing any association contamination. The fact that the brands are not visibly linked makes a statement about each brand, even when the link is discovered. It communicates that the organization realizes that the shadow endorsed brand represents a totally different product and market segment (e.g. Lexus-Toyota, Touchstone-Disney).

2. Brand Endorsement The principle attributes of the endorsed brand may be delineated as it incorporates the shadow brands. It generates indirect market impact with mother brands, it represents distinct product and market segments and endorsed brands operate independently of the mother brands in the market. Endorsed brands are still independent like house of brands, but they also endorsed by another brand, usually an organizational brand. An endorsement by an established brand provides credibility and substance to the offering and usually plays only a minor driver role (e.g. Disney). Brand endorsement has sub-categorized/sub-strategy as:  Nominal and Strong Endorsement/Token Endorsement One of variants of the endorser strategy is token endorser which in this approach, usually a master brand is involved in several product-market contexts that are substantially less prominent than the endorsed brand. The token endorser can be indicated by a logo such as the GE light bulb. The role of the token endorser is to provide some reassurance and credibility while still allowing the endorsed brands maximum freedom to create their own associations (e.g. Universal Pictures-Sony Company, Obsession by Calvin Klein)

 Associated Name/ Linked Brand Name A name with common elements creates a family of brands with an implicit or implied endorser. McDonald’s, for example, has McPotato. A linked name provides the benefits of a separate name without having to establish a second name from scratch and link it to a master brand (e.g. McFlurry, Nestea).

3. Branded House Branded house uses a single master brand to span a set of offerings that operate with only descriptive sub-brands.  Brand-Product Mix When both mother brand and the sub-brand have major driver roles, it is considered a co-driver situation. The master brand is performing more than an endorser role – for example, customers are buying and using both Gillette and Mach3; one does not markedly dominate the other. In branded-house strategy, a master brand moves from being a primary driver role across multiple offerings. The sub-brand goes from having a modest driver role to being a descriptor with little or no driver role (e.g. BMW, Nokia, GE Appliance, GE Capital).

Figure 2.3 Market Impact and Brand Hierarchy Source: Rajagopal and Sanchez (2003) Pg.238

Figure 2.3 shows the brand architecture properties at different levels. The above attributes of the constituents of the brand architecture reveal that the optimum market impact can be obtained with independent brands. The shadow endorsement and strong endorsement of the brands have greater impact on the brand architecture and are determined by the various attributes of the constituents of the brand architecture. At one end of the spectrum, international expansion and consumer needs for reassurance about product quality and reliability result in a shift towards corporate endorsement of product brands. The advantages of the corporate endorsement of the product brands include:  Building umbrella brands  Establishing global corporate identity  Developing customer confidence, reassurance  Monitoring key strategic brands  Enhancing the brand value in new segments  Cost saving through promotion of the global corporate brand rather than multiple independent product brands

Corporate endorsement of product-level brands is increasingly used as a mechanism to integrate the brand structure across country markets, providing a unifying element across product offerings. For example, Mars has launched an ice-cream line as well as soft drink under the Mars brand name.

Strong international brands often have high visibility and are prime candidates for brand extension, especially for entry into new and emerging markets such as China. In some cases, a well-known brand name is used on a product line which is marketed under another brand name else where.For example Danone uses the Danone name to market biscuits in Eastern Europe, in order to leverage customer familiarity with the name.

2.5. Consumers’ Product Evaluation

Evaluation is the assessing and judging the value of a piece of work, an organization or a service. Its main purpose is to help an organization reflect on what it is trying to achieve, assessing how far it is succeeding, and identify required changes (www.evalutiontrust.org). This research is using the evaluation from people who consume or use the products provided by the specific company. The value of the products may or may not interpret to the corporate.

2.6. FMCG (Fast Moving Consumer Goods)

Fast Moving Consumer Goods (FMCG), also known as Consumer Packaged Goods (CPG),is products that have a quick turnover, and relatively low cost. Consumers generally put less thought into the purchase of FMCG than they do for other products. Though the absolute profit made on FMCG products is relatively small, they generally sell in large numbers and so the cumulative profit on such products can be large. The product characteristics of FMCG generally are (Yun Li, 2007):

 They are used at least once a month  They are used directly by the end-consumer  They are non-durable  They are sold in packaged form  They are branded

2.7. Data

One way data can be obtained is by direct observation. This is the basis for the actions that are taken in statistical process control, in which there is overt control over some or all of the factors that may influence the variable being

41 studied, so that possible causes can be identified. In some situation it is not possible to collect data directly but, rather, the information has to be obtained from individual respondents. A statistical survey is the process of collecting data by asking individuals to provide the data. The data may be obtained through such methods as personal interviews, telephone interviews or written questionnaires (Kazmier, 2004:2).

There are four types of data which each one adding more to the next. Thus ordinal data is also nominal, and so on. The types of data has clearly depicted through below figure (Elvina, 2012):

Ratio

Interval

Ordinal

Nominal

Figure 2.4 Types of Data Source: Developed based on Sekaran & Bougie, 2009

1. Nominal Nominal items are usually categorical, in that they belong to a definable category. Example: The number pinned on a sports or A set of countries. 2. Ordinal Items on an ordinal scale are set into some kind of order by their position on the scale. This may indicate such as temporal position, superiority, etc. Example: The first, third and fifth person in a race or pay bonds in an organization as denoted by A,B, C and D. 3. Interval Measured along a scale in which each position is equidistant from one another. This allows for the distance between two pairs to be 42

equivalent in some way. Example: My level of happiness, rated from 1 to 10. 4. Ratio In ratio scale, numbers can be compared as multiples of one another. This one person can be twice as tall as another. Important also, the number zero has meaning. Example: a person’s weight or the number of pizzas I can eat before fainting.

2.8. Sampling Method

A sample is a tool to infer something about a population by selecting a sample from that population. Generally, there are two types of samples: a probability and a non-probability sample. Probability sample is a sample is such a way that each item or person in the population has known (nonzero) likelihood of being included in the sample. If non-probability methods are used, not all items or people have a chance of being included in the sample (Mason, 1999).

There are four methods for sampling, there are (Kazmier, 2004):

1. Random sample So called as probability sample or scientific sample is one in which individual items are chosen from the target population on the basis of chance. Such chance selection is similar to random drawing of numbers in a lottery. 2. Systematic sample The items are selected from the population at a uniform intercal of a listed order, such as choosing every tenth account receivable for the sample. The first account of the 10 accounts to be included in the sample would be chosen randomly. 3. Stratified sample The items in the population are first classified into separate subgroups, or strata, by the researcher on the basis of one or more 43

important characteristics. Then a simple random or systematic sample is taken separately from each stratum. Such a sampling plan can be used to ensure proportionate representation of various population subgroups in the sample. Further, the required sample size to achieve a given level of precision typically is smaller than it is with simple random sampling, thereby reducing sampling cost. 4. Cluster sample Type which the population items occur naturally in subgroups. Entire subgroups, or clusters, are then randomly sampled.

2.9. Hypothesis Testing

Hypothesis is a statement about a population. Data are then used to check the reasonableness of the statement (Mason and Lind, 1999: 305). Hypothesis Testing is a procedure based on sample evidence and probability theory to determine whether the hypothesis is a reasonable statement. Hypothesis testing starts with a statement, or assumption, about a population parameter – such as population mean (Mason and Lind, 1999:306).

2.9.1. Hypothesis Testing Procedure

In testing the hypothesis, there is six-step procedure needs to be followed (Kazmier, 2004:175):

Formulate Specify Select Test Establish the Determine Make the Level of Statistic critical value actual value Decision Hypotheses Significance

Figure 2.5 Testing Hypothesis Basic Steps Source: Based on Leonard J. Kazmier. Business Statistics Fourth Edition (2004: 175)

1. Formulate the Null Hypothesis (H0) and the Alternate Hypothesis (H1)

The null hypothesis (H0) is the hypothesized parameter value which is compared with the sample result. It is rejected only if the sample result is unlikely to have occurred given the correctness of the

hypothesis. The alternative hypothesis (H1) is accepted only if the null hypothesis is rejected. The alternative hypothesis is also designated by

Hα or HA is many texts.

2. Specified the Level of Significance to be used The level of significance is the statistical standard which is specified for rejecting the null hypothesis. If a 5 percent level of significance is specified, then the null hypothesis is rejected only if the sample result is so different from the hypothesized value that a difference of that amount or larger would occur by chance with a probability of 0.05 or less. There is no one level of significance that is applied to all tests. A decision is made to use the 0.05 level (often stated as the 5 percent level), the 0.01 level, 0.10 level, or any other level between 0 and 1. Traditionally, the 0.05 level is selected for consumer research projects, 0.01 for quality assurance, and 0.10 for political polling (Mason & Lind, 1999: 308). Note that if the 5 percent level of significance is used, there is a probability of 0.05 of rejecting the null hypothesis when it is in fact true. This is called Type I error.

Table 2.1 Consequences of Decisions in Hypothesis Testing

Possible states

Possible Null Hypothesis Null Hypothesis decision True False Accept Null Correctly Type II error Hypothesis accepted Reject Null Type I error Correctly rejected Hypothesis

Source: Kazmier, 2004: 175 45

3. Select the Test Statistic The test statistic will either be the sample statistic (the unbiased estimator of the parameter being tested), or a standardized version of the sample statistic. For example, in order to test a hypothesized value of the population mean, the mean of a random sample taken from that population could serve as the test statistic. However, if the sampling distribution of the mean is normally distributed, then the value of sample mean typically is converted into a z value, which then serves as the test statistic.

4. Establish the critical value or values of the test statistic Having specified the null hypothesis, the level of significance, and the test statistic to be used, we now establish the critical value(s) of the test statistic. There may be one or two such values, depending on whether a so-called one-sided or two-sided test is involved. In either case, a critical value identifies the value of the test statistic that is required to reject the null hypothesis.

5. Determine the Actual Value of the Test Statistic For example, in testing a hypothesized value of the population mean, a random sample is collected and the value of sample mean is determined. If the critical value was established as a z value, then the sample mean is converted into a z value. However for this research, the researcher will use the t-value and f-value for the hypothesis testing which is worked the same as z value but those values were meant for unknown standard deviation (σ) population.

6. Make the Decision The observed value of the sample statistic is compared with the critical value (or values) of the test statistic. The null hypothesis is then either rejected or not rejected. If the null hypothesis is rejected, 46

the alternative hypothesis is accepted. In turn, this decision will have relevance to other decisions to be made by operating managers, such as whether a standard of performance is being maintained or which of two marketing strategies should be used.

2.9.2. Test Statistics

For the hypothesis testing, there are several most used approaches and the researcher can choose the most suitable approach for the research (Massey and Miller, 2007 and Mason and Lind, 1999):

1. z-test Condition for Use: Only use z-test if sample is taken from a normal distribution with known variance or if our sample size is large enough to invoke the Central Limit Theorem (usually n ≥ 30 is a good rule of thumb). In latter case, we use s2, the sample variance, instead of population variance σ2. The Test Statistic: When sample is taken from a normal distribution with known variance, then our test statistic is:

Where is the sample mean, is the population mean, s is the sample standard deviation, and n is the sample size.

2. t-test Condition for Use: When we have small sample size taken from a normal distribution of unknown variance, we may use the t-test with n-1 degrees of freedom. The Test Statistic: test statistic for t-test is:

Where is the sample mean, is the population mean, s is the sample standard deviation, and n is the sample size.

3. F-test Condition for Use: when two samples are from populations having equal variances and it is also applied when we want to compare several population means simultaneously. The Test Statistic: test statistics for f-test is:

2 2 Where S1 is the variance for first sample variance and S2 is the variance for second sample variance.

2.9.3. Types of Hypotheses

There are two main types of hypotheses can be tested: one-tailed and two- tailed hypotheses which the critical region will be constructed differently in each case (Massey and Miller, 2007).

The basis of one-tailed or two tailed is derived from the hypothesis that is going to be tested, such as (Mason and Lind, 1999; Kazmier, 2004; Massey and Miller, 2007).

1. Two-tailed The type of hypothesis that is used by researcher is to show whether there is a significance difference between two sample means.

H0: and HA:

With the condition of critical value observed (zobs, tobs, or fobs) is placed between critical stated from table (z, t, or f). The critical value

will be conveyed as ± since the acceptance region placed between the rejection regions. Usually, it will be written as:

-z

-t

-f

-t +t Critical value +t

Figure 2.6 Acceptance and Rejection Area Source: Kazmier, 2004

2. One-tailed One-tailed hypothesis is to compare two populations whether which first sample or population is better or vice versa. The one-tailed also separated into upper-tailed and lower-tailed based on the critical value position.  For the upper-tailed, the hypothesis tested will be stated like:

H0:

H1: and critical value will be positive or shown as:

zobs<+z

tobs<+t

fobs<+f

Thus, it is visualized as example:

+t Critical value Figure 2.7 Upper-tailed Area Source: Kazmier, 2004  For lower-tailed, the hypothesis is stated as:

H0:

H1: and the critical value will be negative or shown as:

-z

-t

-f

- t Critical value Figure 2.8 Lower-tailed Area Source: Kazmier, 2004

CHAPTER III

METHODOLOGY

3.1. Research Method

Research is a systematic investigation to establish facts or principles or to collect information on a subject (www.dictionary.reference.com). The researcher found the subject relates with the corporate branding and drives to the objectives of the research. This research has the objective to find out the effect of corporate branding on consumers’ evaluation on product, whether there is a direct positive effect of corporate branding on the consumers’ product evaluation or negative one. In fulfilling the objective of the research, the researcher pays more conviction to use quantitative method rather than qualitative method.

Qualitative method doesn’t fit in this research because the use of qualitative research is to examine, analyze and interpret observations for the purpose of discovering underlying meanings and patterns of relationship in a manner that does not involve mathematical models. The data in qualitative is not in the form of numbers (Ritchie and Lewis, 2003; Royse, 1999) which actually wants to be found by the researcher is in numbers.

The numbers are used in quantitative research to prove or disprove a notion or hypothesis. The process of measurement is central to quantitative research because it provides the fundamental connection between empirical observation and mathematical expression of quantitative relationships. The data are structured in the form of numbers or that can be immediately transported into numbers (Ross, 1999). The quantitative method provides such compatible view to the research hence the researcher uses the quantitative method to gain the objective from this research.

It’s said the quantitative research involves with numbers and transported the data in form of numbers into (Ross, 1999) that is needed to proves the hypothesis and achieve the objective. The objective of finding the positive or negative relationship between corporate branding and product evaluation only can be got through generating the numbers using multiple regression technique to find out the impact of the independent variables to the dependent variable. The research uses multiple regression techniques to solve the problems and generates the numbers which finally use for hypothesis decision.

3.2. Research Framework

Problem Distributing Questionnaire

Develop Questionnaire Data Collected

Data Gathered Data Process & Result

No Valid? Analysis

Yes Conclusion No Reliable?

Recommendation Yes

Figure 3.1 Research Framework Source: Developed by Researcher

This research is driven by the problem occurs in the market. The problem is the effect on how consumers evaluate the product with the impact of corporate

52 branding. The problem lets the researcher gain information needed about the corporate and develops the questionnaire related to the corporate and its products. The questionnaire uses the Likert scaling system to evaluate the respondents (consumers) point of view compliment with respondents’ knowledge on the corporate (Unilever) and the respondents’ profile. The Likert scale counts from 1 to 5 where 1 is to scale ‘strongly disagree’, 2 is ‘disagree’, 3 is ‘neutral’, 4 is ‘agree’ and 5 is ‘strongly disagree’ on each statements provided by the researcher.

The questionnaire will have a pre-test to find out whether each statement used to evaluate each corporate branding dimension: corporate name, corporate image, corporate reputation and corporate loyalty (Shouiden et al, 2006), is relevant to the research or not by using validity and reliability. If the questionnaire has passed both validity and reliability tests, the questionnaire is needed to be revised based on the validity and reliability results in which the invalid and unreliable statements should be eliminated. Then the questionnaire is ready to be distributed to the target respondents who are the students living in President University Student Housing through all possible media such as paper, email, social media or others which has written record.

The data gathered from the questionnaire will then be processed through the SPSS 16.0 software using multiple regression, hypothesis testing and correlations tools to get the result. The data gathered is according to the corporate branding dimensions and is calculated for each dimension to know the effect of corporate branding on the product evaluation. Each corporate branding dimension will be analyzed as needed to gain the suitable conclusion to the research. Then, the researcher will give recommendation to the company and future research based on the research result.

3.3. Research Instruments

The research instruments convey the method used in collecting the data and statistical tools used in this research starting from inputting the data until how the result is gained.

3.3.1. Data Collection

There are two kinds of data which are primary data and secondary data and in this research the researcher is using the primary data and the statistical survey system. The survey is using questionnaire constructed by the researcher based on Souiden et al journal (2006) spread to the targeted respondents.

The questionnaire is divided into 3 parts to get the comprehensive data from the respondents. Starts from the first part, respondent profile, which is open question that allows the respondents to fill in according to their profile. The second part is about the knowledge about Unilever and brands from the respondents country. This is to know whether the respondents use mostly Unilever products and still loyal in using it or not. The last part is the question about the Corporate Branding dimensions which is using the Likert scale for measuring.

The questionnaire spread through online and traditional surveys. All the questionnaires will be distributed randomly to the respondents as long as the criteria of the respondents match with the researcher requirements in constructing this research. The amounts of the questionnaire collected should meet the minimum number of sample size needed.

The population for this research is consumers of Unilever‘s products who are students living in President University Student Housing with Indonesian and Chinese nationalities. The scope of Indonesian and Chinese students is to get the comparison between the effect of corporate branding in Unilever China and

Unilever Indonesia on the evaluation whether the China’s has greater positive effect or the Indonesian one on each and overall corporate branding dimensions.

Nationality

Indonesian Chinese Gender 90 80 70 38 23 60 50 Chinese 40 49 41 30 Indonesian 20 10 0 Male Female Marital Status 160 140 61 120 100 80 90 Chinese 60 Indonesian 40 20 0 0 Single Married

Age 80 70 12 60 50 55 40 Chinese 30 8 Indonesian 16 20 15 21 10 7 3 0 4 8 1 1 18 19 20 21 22 23 24 Batch 120

100 34

80 75 60 Chinese Indonesian 40

20 13 10 4 0 6 7 2 2009 2010 2011 2012

Figure 3.2 Respondents’ Profile Source: Based on Survey

Above graphics show the profile of 151 respondents which divided into Indonesian and Chinese Nationalities. The profile gathered for the research is consists of Gender, Marital Status, Age and Batch in President University which meets the requirement as Unilever’s product consumers.

3.3.2. Scaling

The questionnaire of this research uses the five-point Likert interval scale in the part 3 to measure the respondents’ evaluation. A five-point scale with neutral mid-point was chosen to generate nuanced findings and to allow for the possibility that an individual may have no opinion on certain items (Easterby- Smith et al, 2008). The Likert scale breaks down as follow:

Table 3.2 Likert Five-Point Scale Strongly Strongly Disagree Neutral Agree Disagree Agree

1 2 3 4 5

Source: Developed by Researcher based on Easterby-Smith et al, 2008

3.3.3. Validity Test

Validity refers to the degree in which our test or other measuring device is truly measuring what we intended it to measure (www.allpsych.com). In this research, the questionnaire as the measuring devices is being tested with validity to know whether all the statements in the part 3 are valid to be used as the measurement or not. Validity is an overall evaluative judgment, founded on empirical evidence and theoretical rationales; of the adequacy and appropriateness of inferences and actions based on test score (Messick, 1980, 1981b).

For checking the validity of the statements in the questionnaire, the researcher uses the Pearson Product-moment formula (www.psychology.ucdavis.edu):

Where:

n = number of pairs

= multiply each x and each y, then sum the products

= the x variable summed

= the y variable summed

= the x variable squared and the squared summed

= the x variable summed and the sum squared

= the y variable squared and the squared summed

= the y variable summed and the sum squared

The formula of Pearson product moment is to help in finding the correlation coefficient (r) value which then is used to be compared to know the validity of each statement. In this research the researcher will use the SPSS software in helping the computation of the validity check using the Corrected Item-Total Correlation option and the result will be compared to the general accepted principle (www.inside.salve.edu):

 r (coefficient correlation) < 0.5, then the correlation is less strong (Kamal, 2012) In using the SPSS, the r-computed (output) will be compared to the r-table whereas r-computed

Whereas r-computed >r-table or sig. r > 0.05, the statement is valid and if the statement passed the reliability test then the statements would be executed. *The computation will be using the 5% error rate.

3.3.4. Reliability Test

After finishing the validity test, the statements move on to the reliability test. Reliability related to the accuracy and precision of the measurement procedures (Cooper and Schindler, 2006). To measure the reliability, the researcher chooses to use the Cronbach Alpha (www.statsoft.com) which is generally used for reliability coefficient, with the formula as follow:

Where:

k = number of items

= the variance sum per item

= the variance of sum of all items

To calculating the variance, the formula (Kazmier, 2004) used as follow:

Where:

n = number of items

= the average of x variable

This test will be established on SPSS software as well. The requirements in the reliability to know whether the statement is accepted or not is from the most social science research situations (www.ats.ucla.edu):

 α-computed < 0.7, the statement is not accepted  α-computed ≥ 0.7, the statement is accepted

The statements from the questionnaire in part 3 that have passed the validity and reliability test is acceptable to be executed to be used in the questionnaire that will be later on use for this research.

3.3.5. Multiple Regression

The primary objective of regression analysis is to estimate the value of a random variable (the dependent variable) given that the value of an associated variable (the independent variable) is known (Kazmier, 2004, pg. 263). In other words, regression equation is an equation that defines the relationship between two variables or more (Mason and Lind, 1999, pg. 435). As requires in this research to know what kind of relationship does the dependent and independent variables has, the multiple regression will be used as the tool to identify the relationship whether there is a relationship or not and how much each independent variables influence or contribute to the dependent variable.

Before calculating multiple regression, there are three assumptions need to be met in order to show the data is eligible to be used (Levine et al, 2011; Abrams, 2007; Osborne and Waters, 2002):

1. Normality Normality test is used for checking whether the data is normally distributed or not. The normality checked by constructing histogram, plot and scatterplot (for these graphs, the researcher processes using SPSS) and look at the output to see the distribution.

Figure 3.3 Normal Distributed Histogram Source: Deborah R. Abrams, 2007

The normally distributed data in histogram will show an ‘A’ shape and often the histogram will include a line that shows what the shape would look like if the distribution were truly normal.

Figure 3.4 Normal Distributed Plot Source: Deborah R. Abrams, 2007

In the plot, the actual scores are ranked and sorted, and an expected normal value is the computed and compared with an actual normal value for each case. The expected normal value is the position a case with that rank holds in a normal distribution. Basically, the plot will show the actual values lining up along the diagonal that goes from lower left to upper right.

Figure 3.5 Normal Distributed Scatterplot Source: Deborah R. Abrams, 2007

The last test for normality is by looking at a plot of residuals. Residuals are the difference between obtained and predicted dependent variable scores. If the data are normally distributed, then residuals scatterplot will show majority of residuals at the center of the plot for each value of the predicted score, with some residuals trailing off symmetrically from the center. If the data creates a curve shape or clustering in an area, then the data are not normally distributed.

2. Collinearity When a situation of two or more independent variables are highly correlated which each other, collinear variables do not provide unique information, and becomes difficult to separate the

effects of such variables on the dependent variables (Levine et al, 2011).

One method of measuring collinearity is the variance inflationary factor (VIF) for each independent variable.

 If a set of independent variables is uncorrelated, each VIF is equal to 1(VIF = 1, uncorrelated)

 If a set is highly correlated, then the VIF might even exceed 10. Manquardt suggests that if VIF is greater than 10, there is too much correlation between one of the variable X to other independent variables(VIF > 10, high correlation) (Levine et al, 2011).

In this research, the researcher uses the SPSS 16.0 to process the data and getting the VIF value.

3. Homoscedasticity Homoscedasticity means that the variance of errors is the same across all levels of the independent variable. When the variance of errors differs at different values of the independent variable, heteroscedasticity is indicated (Osborne and Waters, 2002).

Figure 3.6 Homoscedasticity Scatterplot Source: Osborne and Waters, 2002

Figure 3.7 Heteroscedasticity Scatterplot Source: Osborne and Waters, 2002

To check on homoscedasticity, the scatterplot like shown in Figure 3.4 between one dependent variable and one independent variable. The homoscedasticity data is shown by the cluster points to be approximately the same width all over. Heterosdesticity may occur when some variables are skewed and others are not. In the scatterplot, the heteroscedasticity is indicates when the residuals are not evenly scattered, like the form of bow-tie or fan shape as shown in Figure 3.5.

If those three assumptions has passed, the next step is figuring out the multiple regression formula (Kazmier, 2004, pg. 283) to calculate one dependent variable and more than one independent variable relationship with sample data uses as follow:

Where:

= first parameter of the regression equation

= regression coefficients

= multiply each x and each y, then sum the products

n = the numbers of sample

= the mean of xi variable

= the mean of y variable

= the x variable is squared and the square summed

= the mean of xi variable squared

The b0 is indicating the value of Y when X=0 and the regression coefficients is the next parameter of the regression equation which indicates the slope of the regression line. The figure 3.2 below shows the variety of regression line influenced by regression coefficient.

The lines from Figure 3.3show in each box is the calculation from regression equation which is determine whether the relationship is direct linear (a), inverse linear (b), curvilinear (d) or no relationship at all (c). The dots scattered on each box interpret the degree of relationship which in this research will be found out using the correlation tools.

Figure 3.8 Several Types of Relationship between Variables Source: The Theory and Problems of Business Statistics Kazmier, 2004, pg. 264

3.3.6. Correlation

Correlation analysis measures the degree of relationship between the single independent and single dependent variables (Kazmier, 2004, pg. 268). The corporate branding research uses more than one independent variable to measure the dependent variables and the situation emphasizes on using the multiple correlation tools to measure the degree of relationship among many variables. The relationship is being measured with coefficient of (multiple) determination or 2 symbolized as or r . The formula of coefficient of determination (Kazmier, 2004, pg.269) adjusted for multiple independent variables for sample data is:

Where:

= first parameter of the regression equation

= regression coefficients

= multiply each x and each y, then sum the products

n = the numbers of sample

= the mean of y variable squared

= the mean of y variable

= the y variable is squared and the square summed

*the first parameter of regression equation and regression coefficient has the same formula in multiple regression section.

The coefficient of determination formula above is to serve the level of relationship of variables and to determine the type of relationship the coefficient of correlation is used which is comes from the coefficient of determination:

The relationship among variables is usually shown in coefficient of determination (R2) with the range of number from 0 to 1. If the numbers near 0, it shows low relationship and if the number closer to 1, it conveys the stronger relationship. The r value itself ranges from -1.0 to +1.0 with the negative numbers shows negative relationship and the positive shows the positive relationship. For further understanding, the researcher gives the illustration for one independent variables and one dependent variable in below figure 3.4.

The r (coefficient of correlation) shows whether the variables has relationship (a and d), inverse relationship (c and e) or no relationship (b).r2 (coefficient of determination) shows the degree or how strong the relationship of the variables. The closer the dots/points to the line, it means the stronger the relationship between the variables. From the value shows in Figure 3.3 (a) have +1 value which means the variables has linear relationship (from r value) and the degree of relationship between the variables are very strong which is the points/dots placed at the line (measured by r2). More scatter the points/dots in the figure (shown in d & e) the weaker the relationship.

Figure 3.9 Appearances of Correlation Values Source: The Theory and Problems of Business Statistics Kazmier, 2004, pg. 270

3.4. Sampling Design

There are many ways in choosing the sample from a population that existed as there are random sampling, systematic sampling, stratified sampling and cluster sampling. The researcher uses the random sampling in doing this research knowing that there is a finite population for this research which is the total of Indonesians and Chinese students living in President University. Given that characteristics of students in President University Student Housing are almost similar and the researcher believes all students as the population are using at least one product or brand from Unilever.

From the third trimester in 2012 data, the researcher gets the total numbers of both Indonesians and Chinese students living in President University Student Housing is 1.556 students from President University Student Housing Office. The total student is divided to 1.387 Indonesian students and 169 Chinese students with percentage of 89% and 11%.

In this research, the whole population won’t be used as the respondents. The researcher will use sample to observe this research. To serve the respondents minimum number, the researcher will use the sample size formula (www.macorr.com) as follow:

Where:

z = z value

p = accuracy level

c = confidence interval (expressed as decimal)

However, the researcher knows the number of population in this research and it makes the researcher has to use the following correction sample size formula for finite population (www.macorr.com): 68

Where:

ss = sample size with population unknown

N = numbers of population

The sample size formula is used when the population is unknown, so the calculation only needs the confidence level, accuracy level and the confidence interval. Whilst, the research is supported with the population number so the researcher will use the correction for finite population formula in calculating the sample size. The research chooses to use the confidence level (z) of 95% which is commonly used and it means that the researcher is confidence 95% of the population will pick an answer lies within the confidence interval. The confidence interval to serve this research is determined 10% which means if the 60% of the respondents choose score 3, the researcher is certain between 60% and 70% of all respondents actually answering C. The accuracy level means the percentage of sample that picked a particular answer and it will be 50% to determine a general level of accuracy.

Therefore, the sample size of this research with following criteria:

z = 95% confidence level = 1.96

p = 50% = 0.5

c = 10% = 0.1

Then, the researcher breaks down for calculating the corrective of finite population into Indonesian sample and Chinese sample where the population of Indonesians is 1,387 students and the Chinese is 169 students:

Indonesian

Chinese

The minimum number for the Indonesian respondents is 90 students and for Chinese is 61 students with overall of 152 students. As both respondents has exceed the minimum numbers of sample which is 30 respondents, then the numbers of respondents are valid to be proceed to the next step.

3.5. Testing the Hypothesis

The last step uses in this research is to determine the accepted and rejected hypotheses. Hypothesis testing is a procedure based on sample evidence and probability theory to determine whether the hypothesis is a reasonable statement (Mason & Lind, 1999). The hypothesis that has population parameter is equal to the research specification is referred as the null hypothesis or H0. Whenever the null hypothesis is specified, the alternative hypothesis, HA, is specified as well. The rule is one of the hypotheses, null or alternative should be accepted. It means if the calculation from the data gathered using SPSS 16.0 tools has the number showing the null hypothesis is accepted, then the alternative hypothesis should be rejected and vice versa.

This research will use two types of hypothesis test based on the purpose of determining the accepted hypothesis for individual dimensions (Kazmier, 2004, pg.284):

 t-test t-test is used to determine if the partial regression coefficient for each independent variables represents a significant contribution to the overall model  F-test The analysis of variance is used in regression analysis to test for the significance of the overall model.

3.5.1. t-test

Whilst in this research, the researcher want to compare a sample mean with the hypothesized population mean, then the t-distribution is used for the hypothesis testing. In t-distribution, the population standard deviation can be assumed as the sample standard deviation (Mason & Lind, 1999). The sampling distribution can be assumed to be normal either because the population is normal

71 or because the sample is large enough to invoke the central limit theorem (Kazmier, 2004).Then, to know the t-distribution the formula (Mason & Lind, 1999, pg.353) is:

Where:

= sample mean

= population mean

S = sample standard deviation

n = number of sample

The t value that is gotten from the calculation by SPSS or so-called t- calculated will then be compared with the t value from t-table. From the t-table, the value will be seen from the level of significance of 5% or 0.05 which will comes to value of ±1.96using two-tailed distribution and degree of freedom comes from the sample size minus 1 (df = n-1). Then it will come out with the analysis will base on the conditions where:

 t-calculated < t-table, then null hypothesis, H0, is accepted

 t-calculated > t-table, then the null hypothesis, H0, is rejected

Moreover, in this research there is a further research about the cross- cultural analysis which is the comparison of the two nationalities’ point of view about the corporate branding of Unilever in each own country. It makes the t- distribution formula (Mason & Lind, 1999, pg.364) more should use two sample sizes, which is:

Where:

= the mean of the first sample

= the mean of the second sample

= the number in the first sample

= the number in the second sample

= the pooled estimate of the population variance

To calculate the pooled estimate population variance, it uses following formula (Mason & Lind, 1999, pg. 363):

Where:

= the first sample variance

= the second sample variance

The two sample sizes t-distribution formula will be used to calculated the t-value for the hypothesis which is comparing Unilever China corporate branding and Unilever Indonesia corporate branding where the first sample will be from Chinese respondents and the second one is Indonesians. The t-table that will be compared with will use significance level of 5% or 0.05 which comes as ±1.645 of using one-tailed distribution and degree of freedom sum of two sample size then the sum deducted by 2 (df = n1+n2-2). Next, the t-calculated will be evaluated with the t-table to get the decisions on the hypothesis about comparison of Unilever in China and Indonesia.

3.5.2. F-test

F-test used in this research for two situations which are one-tailed and two-tailed with the condition meets in the t-test where the two-tailed will be used to know the relationship or effect of the overall independent variables to the dependent variables aside from the cultural differences and the one-tailed will be use to identify the effect of two population influenced by the culture differences which are Indonesian and Chinese. The F-test formula (Mason & Lind, 1999, pg. 389) used as follow:

Where:

= the first sample variance

= the second sample variance

*the formula of variance will be the same as used in the t-test

The rule for accepting the null hypothesis, H0, will be:

 f-calculated < f-table, then null hypothesis, H0, is accepted

 f-calculated > f-table, then the null hypothesis, H0, is rejected

The f-table value will be looked up through the table with the criteria of 5% level of significance specified for both one-tailed and two-tailed condition and the degree of freedom.

3.5.3. p-value

The probability of the observed sample result occurring is determined by the p-value approach. This probability is then compared to the designated level of

74 significance, . The idea is that a low p-value leads to rejection of the null hypothesis (Reject H0 if p-value ) (Kazmier, 2004).

To figure out the p-value, first the critical value (z, t, or F value) should be known or computed then look up at the table based on the critical value. The proportion of critical value stated on the table is the p-value which is then compared with the .

In this research, the p-value is gotten from the SPSS 16.0 output written as Sig. in the output table. The value of Sig. will be taken for comparing with the α 5% used in this research for 95% confidence internal. For the purpose of one- tailed t-test, the significance value, just divide the two-tailed value in half (www.csub.edu).

3.6. Limitations

During the research specified in gathering the information, the researcher facing several limitations:

1. The availability of the respondents The respondents chosen by the researcher are the students of President University who are living in President University Student Housing. There are two strategies used by the researcher to find the respondent: stopping every student passed by and going to students’ dorms or rooms. Even by doing both strategies, the researcher still faced limitations on the students because some students in student housing area are not actually living or staying in student housing. There are some students who are just visiting student housing for organization or activities purposes and some just hang out in their friends’ room.

2. The restricted rule of entering opposite gender area The limitation for the researcher to enter the opposite gender area causes the inflexibility in spreading and gathering questionnaire from the opposite gender students. 3. The communication with the respondents There is limitation is communicating with Chinese freshmen who are mostly still don’t understand English really well. It caused the researcher has to find another Chinese students as the respondents who are studying long enough in President University to make sure the respondents understand the questionnaire perfectly and asking the Chinese senior to explain for the juniors and freshmen.

CHAPTER IV

ANALYSIS OF DATA AND INTERPRETATION OF RESULTS

4.1. Data Processing

As described earlier in Chapter 3 by the researcher, the questionnaire was first spread to 30 people which consist of 15 Indonesian students and 15 Chinese students living in President University Student Housing. The questionnaire for 30 people is functioned as pre-test of the questionnaire to test on the validity and reliability test for each statement relies in the questionnaire.

Afterward, the valid and reliable statements will be used for the real research. The questionnaire then distributed for 151 respondents which has met the criteria for doing this research.

4.2. Result of Validity and Reliability Test

The result of questionnaire pre-test is being proceed through validity and reliability test.

4.2.1 Result of Validity Test

Following the research framework, after gathering the data for pre-test, the next step is testing the data on its validity. The process of checking the validity requires the researcher to input the pre-test data into SPSS 16.0 software and process it using the Pearson product model correlation.

As the requirements for valid statements is r-computed > r-table which is 0.5 (Kamal, 2012) then the r-computed will be analyzed as follow:

Table 4.1 Validity Test

r-computed (Corrected Item r-table Status Item-Total Correlation) CON1 0.509 0.500 Valid

CON2 0.594 0.500 Valid

CON3 0.375 0.500 Invalid

CON4 0.551 0.500 Valid

CON5 0.624 0.500 Valid

CON6 0.676 0.500 Valid

CON7 0.723 0.500 Valid

CIM1 0.735 0.500 Valid

CIM2 0.602 0.500 Valid

CIM3 0.393 0.500 Invalid

CIM4 0.573 0.500 Valid

CIM5 0.598 0.500 Valid

CIM6 0.551 0.500 Valid

CRE1 0.575 0.500 Valid

CRE2 0.609 0.500 Valid

CRE3 0.600 0.500 Valid

CRE4 0.449 0.500 Invalid

CRE5 0.795 0.500 Valid

CRE6 0.672 0.500 Valid

CRE7 0.754 0.500 Valid

CRE8 0.69 0.500 Valid

CLO1 0.411 0.500 Invalid

CLO2 0.746 0.500 Valid CLO3 0.688 0.500 Valid

CLO4 0.587 0.500 Valid

CLO5 0.588 0.500 Valid

CLO6 0.697 0.500 Valid

CPE 0.768 0.500 Valid

Source: SPSS 16.0 and Primary Data

Based on the SPSS output, there are 4 statements:

 CON3: The product carries both the company name and its generic name (e.g. Toyota Vios)  CIM3: The company is persuasive and shrewd  CRE4 The company which produces the product is the industry leader  CLO1: The product/model is only offered by the company that I used to patronize (used to buy the products)

Those are not valid and need to be eliminated from the questionnaire. One statement from each variable will be taken out. The valid statements then will be used in the questionnaire if the statements also measured as reliable.

4.2.2. Result of Reliability Test

The next step after the validity checking, there is a reliability checking on the questionnaire. Similar to validity test, reliability test has the requirement to be met which is α-computed >0.7 to show the reliability.

For reliability, it will be measured using the Cronbach Alpha. The pre-test data input to the SPSS and process into required output as follow:

Table 4.2 Reliability Statistics

Cronbach's Cronbach's Alpha Based on N of Items Alpha Standardized Items .932 .934 28 Source: SPSS 16.0 and Primary Data 79

Table 4.3 Reliability Test

α-computed (Cronbach's Items Cronbach Alpha Status Alpha if Item Deleted) CON1 0.931 0.700 Reliable

CON2 0.930 0.700 Reliable

CON3 0.931 0.700 Reliable

CON4 0.931 0.700 Reliable

CON5 0.929 0.700 Reliable

CON6 0.933 0.700 Reliable

CON7 0.932 0.700 Reliable

CIM1 0.928 0.700 Reliable

CIM2 0.930 0.700 Reliable

CIM3 0.932 0.700 Reliable

CIM4 0.930 0.700 Reliable

CIM5 0.930 0.700 Reliable

CIM6 0.932 0.700 Reliable

CRE1 0.931 0.700 Reliable

CRE2 0.930 0.700 Reliable

CRE3 0.929 0.700 Reliable

CRE4 0.932 0.700 Reliable

CRE5 0.927 0.700 Reliable

CRE6 0.928 0.700 Reliable

CRE7 0.927 0.700 Reliable

CRE8 0.929 0.700 Reliable

CLO1 0.932 0.700 Reliable

CLO2 0.933 0.700 Reliable

CLO3 0.929 0.700 Reliable

CLO4 0.930 0.700 Reliable CLO5 0.930 0.700 Reliable

CLO6 0.932 0.700 Reliable

CPE 0.928 0.700 Reliable

Source: SPSS 16.0 and Primary Data

The reliability test shows that all statements are met with the requirement of more than 0.7 which means all the statements are reliable and can be used for the questionnaire. Furthermore, remember that statements will be used in the questionnaire are the one that valid and reliable, then the statements that are invalid even reliable still not going to be used in the questionnaire.

Therefore, the CON3, CIM3, CRE4 and CLO1 will be eliminated from the questionnaire. Next the following number will fill in the position of the eliminated number and then will be used for further analysis. For illustration, CON3 is invalid and reliable statement then the CON4 will take over CON3 position as the next analysis and discussion.

4.3. Data Interpretation

4.3.1. Data Interpretation of Consumers’ Knowledge on Unilever

Derived from the questionnaire, the 151 respondents fill in about their knowledge on Unilever and the brands produced by Unilever.

Do you know Unilever? 150 49

100 Chinese 50 Indonesian 89 12 0 1 Yes No

Figure 4.1 Respondents Knowledge on Unilever’s Existence Source: Based on Survey 81

The figure shows the knowledge of respondents about the ‘Unilever’ existence in their own countries. The Indonesians acknowledge the existence of Unilever brand more than the Chinese which shown from the numbers of 89 out of 90 respondents (98.9%) from Indonesian’s respondents compares to 49 out of 61 respondents (80.3%) of the Chinese respondents knows Unilever existence in their own country or in the overall percentage despite nationality 91.4% (138 out of 151 respondents) know Unilever and the rest 8.6% (13 out of 151 respondents)do not know Unilever.

Do you know Unilever's Product? 160 54 140 120 100 80 Chinese 60 Indonesian 40 20 89 7 0 1 Yes No

Figure 4.2 Respondents Knowledge on Unilever’s Product Source: Based on Survey

For the knowledge of Unilever’s Product/Brand existence or the acknowledgement of the brands or product produced by Unilever also known more by the Indonesians with 89 out of 90 respondents (98.9%) compares to Chinese respondents who are only 54 out of 61 respondents (88.5%). For the overall percentage despite the nationality 94.7% (143 out of 151 respondents) know Unilever’s product and 5.3% (8 out of 151 respondents) do not know Unilever’s product.

Have you ever used or consumed Unilever's Products? 160 54 140 120 100 80 Chinese 60 Indonesian 40 20 89 7 0 1 Yes No

Figure 4.3 Respondents Consumption on Unilever’s Product Source: Based on Survey

The relationship of not knowing the product produced by Unilever and the consumerism of Unilever’s products makes the respondents chose the options of never using or consuming Unilever’s products. It shows the same result as the previous figure on Unilever’s products knowledge where the 98.9% of the Indonesians using or consuming Unilever products and 88.5% of the Chinese has ever used and still using the Unilever’s products. And the rest, 1.1% of Indonesian and 11.5% of Chinese, who don’t know Unilever’s products, stated never used the products.

How many Unilever's Brands have you ever used? - Indonesian 12 10 11 10 8 8 8 6 6 4 5 4 4 4 4 4 2 3 3 2 2 2 1 2 2 1 2 1 1 0

How many Unilever's Brands have you ever used? - Chinese 10

8 9 8 6 7 7 7 6 4 4 4 2 3 2 2 1 1 0

Figure 4.4 Numbers of Brands Used by Respondents Source: Based on Survey

From figure 4.3 shows that all of the respondents use the brands from Unilever. Looking at the Indonesian respondents, most of the respondents use and/or ever used around 8 until 18 brands in their life as they acknowledged with the average of 13.71 brands per respondents (41.5% of the overall brands exists in Indonesia). However, Chinese respondents use and/or ever used around 4 to 9 brands with the average of 6.11 brands per respondents (38.2% of the overall brands exists in China).

The 41.5% brands are used and ever used by Indonesia respondents and 38.2% brands are used and ever used by Chinese respondents show that actually Unilever’s brands in Indonesia are being chosen more by Indonesian respondents rather than for Chinese. The mismatch of the Figure 4.4 overall respondents are 151 using or ever used Unilever’s brands/product with Figure 4.2 and Figure 4.2 where only 143 respondents saying they knows Unilever’s product brands and uses those brands, are actually showing 8 of the respondents are actually don’t know that the product brands they are using, produced by Unilever.

Do you still use or consume the product(s)? 160 52 140 120 100 80 Chinese 60 Indonesian 40 20 90 9 0 0 Yes No

Figure 4.5 Numbers of Respondents who still use Unilever’s Products Source: Based on Survey

The research shows that actually all of the Indonesian respondents are still using the brands (even not all brands that have ever been consumed or used) 90 out of 90 (100%) Indonesia respondents and 52 out of 61 (85.2%) Chinese respondents are still using the brands or products. The rest 9 Chinese respondents are not using the product or brands anymore.

4.3.2. Data Interpretation on Corporate Branding Dimensions

4.3.2.1. Multiple Regressions and Hypotheses Testing

The primary data based on the survey is being processed by the researcher using the SPSS 16.0 software which shows the output related to multiple regression as depicted in below figures and tables.

The multiple regression analysis is started with the analysis of the assumptions required to be met before jumping into the multiple regression formula. The first assumption to be met is the normality.

Figure 4.6 Normality Histogram Source: Based on SPSS 16.0 and Primary Data

The histogram shows the normal distribution of the primary data, gotten from the survey, with the ‘A’ shape which means the normality of the data distribution is met with the assumption.

Figure 4.7 Normality Plot Source: Based on SPSS 16.0 and Primary Data

The Plot figure shows the actual values are laying around the expected value of normality which is a diagonal line lies from life bottom to upper right.It means that the plot shows the normality plot assumption is met.

Figure 4.8 Normality Scatterplot Source: Based on SPSS 16.0 and Primary Data

The scatterplot figure shows the data are spread in an order way making a line. It doesn’t make a cluster or make a curve pattern which means the data are showing normality and the assumption is met.

Continuing to the collinearity assumption which is to prove how strong the relationship between independent variables.

Table 4.4 Variance Inflationary Factor

Independent Variable Collinearity Statistics - VIF CON 1.966

CIM 1.96

CRE 2.288

CLO 2.222

Source: SPSS 16.0 and Primary Data

As the requirement of the collinearity where the VIF should be smaller than 10 then the independent variables of CON, CIM, CRE and CLO which has the value of VIF 1.966, 1.96, 2.288 and 2.222 have met the requirement from the collinearity assumption. Even the VIFs are close to 1 which means it is almost uncorrelated.

The last assumption is from the homoscedasticity. This assumption is taken from the partial scatterplots as shown by SPSS output.

Figure 4.9 Homoscedasticity Scatterplot Source: Based on SPSS 16.0 and Primary Data

From 4 scatterplots do not show any irregular of the dots distribution which has the ‘bow’ or ‘fan’ shape. The scatterplots show the homoscedasticity rather than heteroscedasticity. It means that the last assumption also met the requirement.

Multiple Regression and F-test Hypothesis Testing

After passing all of the assumptions, the next step is to conduct the main multiple regression test to figure out if the hypothesis testing requirement is met or not.

Table 4.5 Regression ANOVA

F Sig. Regression 42.009 .000

Source: SPSS 16.0 and Primary Data

The result of the F-test is used to verify relationships between the independent variables and the dependent variables hence verifying the first Hypothesis. To test it, the researcher takes the Sig value of 0.000 which means the p-value is less than 0.05 (0.000 < 0.05) which means the null hypothesis is going to be rejected and the alternative hypothesis is accepted. So, there is an effect of overall corporate branding dimensions (OCBD) on consumers’ product evaluation (CPE).If the condition put in the regression formula, then it will show as:

Table 4.6 Regression Coefficients of Beta

Unstandardized Coefficients B

(Constant) -0.712

CON 0.258

CIM 0.056

CRE 0.531

CLO 0.39

Source: SPSS 16.0 and Primary Data

As a result of accepting the alternative hypothesis, it means there is an effect of the independent variables to the dependent variables which will be stated on the multiple regression formula into:

The formula indicates that the CON, CIM, CRE, and CLO have positive effects on CPE. If the value of CON, CIM, CRE or CLO is increase, then the CPE value will increase as well and vice versa. The b0shows a negative value meaning if there is no CON, CIM, CRE and CLO, consumer will gives negative evaluation on the corporate or the product brands. Therefore, it is true that corporate branding dimensions give positive effect on consumer evaluation through product.

Multiple Regression and t-test Hypothesis Testing

Next is testing or to prove whether each independent variable (CON, CIM, CRE or CLO) has the effect on dependent variables (CPE) or so-called as partial testing. The researcher uses the t-test for this testing with using the p-value or Sig.

Table 4.7 Regression Coefficients of t-Test

t Sig.

CON 2.429 0.016

CIM 0.519 0.605

CRE 3.801 0.000

CLO 3.413 0.001

Source: SPSS 16.0 and Primary Data

The table 4.7 shows Sig. of Corporate Name (CON) is 0.016 which is less than 0.05 (0.016 < 0.05). It means the null hypothesis (H02) is rejected and the alternative hypothesis (HA2)is accepted. So, corporate name (CON) has an effect on consumers’ product evaluation (CPE). 91

For the Corporate Image (CIM), the Sig. is 0.605 which is greater than

0.05 (0.605 > 0.05) and it implies that the null hypothesis (H03) is accepted. Therefore, corporate image (CIM) has no effect on consumers’ product evaluation (CPE).

The corporate reputation shows a very low value on Sig which is 0.000 and it is less than 0.05 (0.000 < 0.05). It implies the null hypothesis (H04) is rejected and the alternative hypothesis (HA4) is accepted. Therefore, corporate reputation (CRE) has an effect on consumers’ product evaluation (CPE).

The last independent variable, corporate loyalty (CLO) shows a value of

0.001 which is less than 0.05 (0.001 < 0.05). It implies the null hypothesis (H05) is rejected and the alternative hypothesis (HA5) is accepted. Therefore, corporate commitment/loyalty (CLO) has an effect on consumers’ product evaluation (CPE).

Looking at the hypotheses accepted above, corporate image shows that there is no effect on customer product evaluation and it gives a reaction on the overall formula of the regression which the corporate image should be taken out because it gives no effect based on this research and the formula is:

The multiple regression equation is adjusted into new equation as shown above to show that only corporate name, corporate reputation and corporate loyalty who have the effect on consumers’ product evaluation.

t-test for Cross-culture Analysis

The hypothesis testing proceeds on the culture differences from two nationalities: Indonesia and China. The researcher is comparing the corporate branding of Unilever in both countries to know whether the corporate branding communicates through its product to the consumer are same or different.

Table 4.8 Independent Sample Test of t-Test

t Sig. (2-tailed) Sig. (1-tailed)

CON 5.115 0.000 0.000

CIM 4.075 0.000 0.000

CRE 0.425 0.671 0.336

CLO 1.335 0.184 0.092

Source: SPSS 16.0 and Primary Data

The table above indicates the t value and the Sig. 1-tailed (p-value) of the evaluation differences from two nationalities. The analysis starts from the first variable, corporate name (CON), which gives the Sig. of 0.000 which is less than

0.05 (0.000 < 0.05). It implies the null hypothesis (H06) is rejected and the alternative hypothesis (HA6) is accepted. So it means the effect of corporate name (CON) on consumers’ product evaluation (CPE) is greater for Unilever Indonesia than that of Unilever China; CONULI> CONULC.

Next, the corporate image (CIM) shows a low Sig value of 0.000 which is less than 0.05 (0.000 < 005). It implies the null hypothesis(H07) is rejected and the alternative hypothesis(HA7) is accepted. Therefore, it proves that the effect of corporate image (CIM) on consumers’ product evaluation (CPE) is greater for

Unilever Indonesia than that of Unilever China; CIMULI> CIMULC.

Corporate reputation (CRE) gives 0.0671 as the Sig. value which is greater than 0.05 (0.336> 0.05). It implies the null hypothesis is accepted

(H08)and the effect of corporate reputation (CRE) on consumers’ product evaluation (CPE) is not greater for Unilever Indonesia than that of Unilever

China; CREULI≤ CREULC.

The last independent variable, corporate loyalty (CLO), shows the Sig. value as 0.184 which is greater than 0.05 (0.092> 0.05). It implies the null hypothesis (H09) is accepted and the effect of corporate commitment/loyalty

(CLO) on consumers’ product evaluation (CPE) is not greater for Unilever

Indonesia than that of Unilever China; CLOULI≤ CLOULC.

F-test for Cross-culture Analysis

For the overall corporate branding dimensions, the researcher uses the F- test for the hypothesis testing which the data is processed via SPSS and given the output as below:

Table 4.9 Independent Sample Test of F-Test

F Sig. Sig. (1-tailed)

CPE 12.997 0.000 0.000

Source: SPSS 16.0 and Primary Data

The table 4.9 shows the value of OCBD as Sig. 1-tailed 0.000 which is less than 0.05 (0.000 < 0.05). It implies the null hypothesis (H010) is rejected and the alternative hypothesis (HA10) is accepted. Thus, the effect of overall corporate branding dimensions on consumers’ product evaluation (CPE) is greater for

Unilever Indonesia than that of Unilever China; CPEULI> CPEULC.

4.3.2.2. Correlation

Knowing that there is a relationship between the independent variables and the dependent variable from the multiple regression testing, it makes the researcher wants to find out more about how strong the relationship of a independent variable to the dependent variable.

Recall on the partial multiple regression testing using the t-test that proves, in this research, that the corporate image doesn’t have the effect on the dependent variable. It signifies that this research can’t calculate how strong the corporate image effect on the consumers’ product evaluation. Therefore, only three independent variables will be figured out the correlation to the dependent variable. 94

Table 4.10 Correlations

Variable CPE CON 0.581

CRE 0.663

CLO 0.652

Source: SPSS 16.0 and Primary Data

The correlation of corporate name (CON) to CPE is 0.581 which is indicates a quite strong relationship. For corporate reputation (CRE) the coefficient is 0.663 which is higher than CON correlation to the CPE means correlation between those variables are strong. Besides, the corporate loyalty shows high correlation as well as 0.652. So, the overall corporate branding dimensions that have effect on consumers’ product evaluation has strong realtionshp.

CHAPTER V

CONCLUSIONS AND RECOMMENDATIONS

5.1. Conclusion

To commence the research on the effect of corporate branding dimensions on consumers’ product evaluation, the researcher sets the problem beforehand. The problem of how the corporate branding dimensions, roles as the independent variables, effects on the consumers’ product evaluation, roles as the dependent variable.

To solve the problems above, the researcher has to observe on below problems in advance:

1. Is there a relationship between each corporate branding dimension and the consumers’ product evaluation? 2. Does each corporate branding dimension have positive effect or negative effect toward the consumers’ product evaluation?

Discovering the solution for the problem gives the researcher other problems to be figured out. The research is created to be more comprehensive with:

1. To know the level of effect given by the corporate branding dimensions to the consumers’ product evaluation and; 2. The additional of corporate branding comparison between two nationalities: Indonesia and China. The purpose of creating another problem is to know whether the effect of corporate branding dimensions on consumers’ product evaluation is greater for Unilever Indonesia than that of Unilever China.

The solution for all the problems above has been elaborated in chapter 4. Based on the research conducted for both Indonesian and Chinese respondents, it can be conclude that three of the Unilever’s corporate branding dimensions; which are corporate name, corporate reputation and corporate loyalty; are having the positive effect on the consumers’ product evaluation. However, another corporate image of Unilever doesn’t give any effect on consumers’ product evaluation. For the overall corporate branding dimensions, it has an effect on consumers’ product evaluation.

The next problem lays in the correlation test for each independent variable. The purpose is to know the correlation of one independent variable towards other independent variables. From the chapter 4 computation, the independent variables are served as having low correlations towards one another. So, there is nothing need to be concerned on eliminating another independent variables from corporate name, corporate reputation and corporate loyalty. However, the correlations between each corporate branding dimension that has effect on consumers’ product evaluation are strong.

For the culture differences towards the corporate brandings, in chapter 4 the result has shown that for corporate name and corporate image of Unilever Indonesia are having greater effect than those of Unilever China based on the respondents. Otherwise, the corporate reputation and corporate loyalty of Unilever Indonesia are not having greater effect than those of Unilever China. Furthermore, the consumers’ product evaluation on corporate branding dimensions is having greater effect for Unilever Indonesia than that of Unilever China.

5.2. Recommendation

Regarding the results of this research, there are some recommendations suggested by the researcher for the company and future research.

97 a. For Unilever

1. From the result, the corporate image shows that has no effect on consumers’ product evaluation so the Unilever should give more effort to maximize the strength of the positive image through products. 2. Unilever can do advance research on the corporate image components that is not portrayed in the product so Unilever can do the right branding in image with the effective and strategic ways. 3. Instead of focusing on the weakness, the company should focus on the strength which are the corporate name, corporate reputation and corporate loyalty and create strategy to strengthen them in the market’s eyes. 4. The result of comparing corporate branding Unilever Indonesia and Unilever China gives the imbalance of branding in both countries. Unilever can have a standard in promoting corporate brand so it won’t be different among countries.

b. For Future Research

This research would be better improved by future researcher with the similar topic in considering these few things.

1. The researcher recommends in taking a corporate that have specific target market and doing the research on the target market. Research on the specific target market set by the corporate products give a more accurate data and the consumer can specify on evaluating the product which is familiar with them.

2. To diversify the result of corporate branding in the study, the future research can use another corporate or even another industry.

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APPENDICES

107

Appendix A - Research Instrument (Questionnaire)

Questionnaire

Unilever Corporate Branding By Marvella

Dear friend, Please kindly fill this questionnaire for my Thesis. This questionnaire is about Unilever company in FMCG (Fast Moving Consumer Goods) industry and its product. This questionnaire is to get your understanding and evaluation on how Unilever perform its branding in your country.

Respondent Profile Name : …………………………………………… Student of President University Age : …………………………………………… Batch : …………………………………. Gender : Male / Female Major : …………………………………. Marital Status : Single / Married ID No : …………………………………. Nationality : China / Indonesia Dorm : …………………………………. *Chinese: from China * Indonesian: from Indonesia (includes Indo-Chinese)

Knowledge of Unilever For Chinese: Evaluate UNILEVER CHINA and the product/brandsexistin China For Indonesian: Evaluate UNILEVER INDONESIA and the Products/brands exist in Indonesia

1. Do you know Unilever? A. Yes B. No 2. Do you know Unilever Products? A. Yes B. No 3. Have you ever used or consumed Unilever products? A. Yes B. No 4. Which Unilever products/brands you have ever used or consumed? (Circle the product you use/consume) Unilever China (for Chinese) Unilever Indonesia (for Indonesian) 1. Dove Hair Product/soap / a.奥妙Omo Detergent Deodorant/ Body Lotion b. 多芬Dove Hair Product / Body Wash 2. TRESemmé c. 清扬 Clear 3. Clear

d. 四季宝 Skippy 4. Sunsilk e. 力士Lux 5. Pepsodent Toothpaste / Toothbrush f. 家乐Knorr 6. Close Up g. Comfort金纺 7. Lifebuoy (Body wash/hand soap) h. 和路雪 Ice Cream 8. Lux i. 旁氏Pond’s 9. Citra Soap / Lotion / Hazeline j. 中华Toothpaste 10. Zwitsal k. 立顿Lipton Tea 11. Rexona Deodorant l. 夏士莲Hazeline 12. Vaseline m. 晶杰Cif 13. She Cologne n. 舒耐Rexona 14. Pond’s o. 凡士林Vaseline 15. Axe p. 凌仕Lynx 16. Cif 17. Rinso 18. Surf 19. Molto 20. Domestos 21. Sunlight 22. Vixal 23. Wipol 24. Pure it (Water Dispenser) 25. Bango 26. Blue Band 27. Skippy 28. Buavita (juice) 29. Sariwangi 30. Lipton 31. Royco 32. Wall’s (Paddle Pop, Cornetto, Magnum, Wall’s Buavita, Wall’s Selection, Vienetta, Dreamy Creamy, Dung Dung) 5. Do you still use and consume the products? A. Yes, there are ……………………………………………………………………………………………………… B. No

Corporate Branding on Product On the table below, there are statements about Unilever and its products you are using or consuming. *For Chinese: Evaluate Unilever China and the product/brandsexistin China For Indonesian: Evaluate Unilever Indonesia and the Products/brands exist in Indonesia

Please fill in the box with the number you choose 1= Strongly Disagree 2= Disagree 3= Neutral 4= Agree 5= Strongly Agree

No Statements Score Corporate Name 1 The name of the company producing the product is well-known 2 The product carries the name of the company 3 The product carries both the company name and its generic name (e.g. Toyota Vios) 4 The company extend its name to all the product it produces 5 The company uses different brand names for each product it produces 6 The company name is usually viewed in product packaging 7 The company name is usually viewed in product advertisement Corporate Image 1 The company is innovative and pioneering 2 The company is successful and self-confident 3 The company is persuasive and shrewd 4 The company does business in an ethical way 5 The company is open and responsive to consumers 6 The company produces product that makes people life easier Corporate Reputation 1 The company which produces the product has an emotional appeal to me 2 The company which produces the product undertakes some social responsibilities 3 The company which produces the product is known for its high quality products and services 4 The company which produces the product is the industry leader 5 The company which produces the product is a good workplace environment (i.e. regarded as a decent company to work for) 6 The company which produces the product has a good financial situation 7 The company which produces the product cares for the environment 8 If the company which produces the product fulfills the promises that it makes to its customers Corporate Loyalty 1 The product/model is only offered by the company that I used to patronize (used to buy the products) 2 The company which offers the product is overtaking its competitors 3 I have an affection and emotional appeal to the company that produces the product 4 I have a high regard to the company’s products 5 I always use/purchase the company’s products 6 I always re-purchase the company’s product after first trial Overall Corporate Effect 1 The products greatly effects my evaluation on the corporate

Appendix B – Ordinal Data

No Nat. CON1 CON2 CON3 CON4 CON5 CON6 CIM1 CIM2 CIM3 CIM4 CIM5 CRE1 CRE2 CRE3 CRE4 CRE5 CRE6 CRE7 CLO1 CLO2 CLO3 CLO4 CLO5 OCBD 1 Ina 4 4 4 5 5 4 5 5 5 4 4 3 3 3 3 3 3 3 2 3 2 4 3 3 2 Ina 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 3 3 3 4 3 Ina 5 5 5 5 5 5 5 5 4 4 5 4 4 5 4 4 4 4 4 4 4 5 5 5 4 Ina 5 3 5 5 5 5 4 4 4 4 4 4 4 4 4 4 4 3 3 4 3 5 4 3 5 Ina 4 5 3 5 4 3 5 5 5 5 5 2 3 5 3 3 4 3 1 2 3 5 5 5 6 Ina 5 4 5 5 4 4 3 4 4 3 4 4 4 4 4 4 4 4 4 4 4 4 4 4 7 Ina 4 5 3 3 5 2 5 4 4 5 4 3 4 5 4 4 4 3 3 3 3 3 3 3 8 Ina 4 3 1 5 5 5 4 4 3 4 4 3 3 4 4 4 4 4 4 3 3 3 3 3 9 Ina 4 4 4 4 4 4 4 4 4 4 4 4 5 4 4 4 5 3 4 4 4 5 4 4 10 Ina 4 3 2 4 2 3 4 5 4 3 4 3 3 4 4 5 4 4 4 3 3 4 4 4 11 Ina 4 2 4 4 4 2 5 5 5 2 5 4 4 3 3 4 3 3 3 3 3 4 4 4 12 Ina 4 4 4 4 5 5 5 4 4 5 5 3 3 4 4 3 3 3 3 3 4 3 4 4 13 Ina 5 5 4 5 5 5 4 5 5 4 5 5 5 4 5 5 4 5 4 5 5 5 5 5 14 Ina 5 3 5 5 5 5 4 5 5 5 5 4 5 5 3 5 5 5 4 5 5 5 5 5 15 Ina 3 3 2 3 5 5 3 3 3 4 3 3 3 3 3 3 3 3 3 3 3 3 3 3 16 Ina 4 3 4 5 4 4 3 4 5 3 4 5 4 3 4 5 1 3 4 3 3 3 3 3 17 Ina 5 4 4 4 4 4 4 4 3 3 4 3 4 4 3 4 4 4 4 3 4 3 3 4 18 Ina 4 4 4 2 4 4 4 4 4 5 5 4 4 4 4 4 4 4 4 4 4 4 4 4 19 Ina 5 3 5 4 5 4 4 5 4 4 5 4 3 4 3 4 3 4 5 5 4 4 2 4 20 Ina 5 4 3 4 5 4 4 5 3 3 4 3 4 4 3 3 4 4 3 4 4 3 3 4 21 Ina 4 3 4 5 3 3 3 3 4 4 3 3 4 3 3 3 3 3 3 3 3 2 3 3 22 Ina 5 5 5 5 4 5 4 4 4 3 4 3 4 4 4 3 3 3 4 3 4 4 4 4 23 Ina 4 4 3 5 2 5 3 4 4 4 5 3 3 4 4 5 3 4 4 3 3 4 5 4

24 Ina 4 2 3 4 4 4 4 4 3 3 4 2 4 4 2 3 3 3 5 2 4 4 4 3 25 Ina 5 4 4 4 4 5 5 5 4 4 4 3 3 4 4 3 3 3 4 3 4 4 3 3 26 Ina 5 5 5 5 4 5 5 5 4 3 3 4 3 5 4 5 3 4 3 5 5 3 4 5 27 Ina 5 5 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 3 3 3 3 4 4 28 Ina 4 4 2 5 5 4 4 3 4 5 4 3 3 3 4 4 3 5 3 3 4 4 3 4 29 Ina 4 3 4 4 4 4 5 4 4 4 4 3 3 4 3 3 3 4 4 4 4 3 4 4 30 Ina 4 5 4 4 4 4 3 4 4 4 5 4 4 4 4 4 4 4 4 4 4 4 4 4 31 Ina 5 4 4 4 3 4 4 4 3 4 4 3 4 4 4 3 3 4 4 3 3 4 3 3 32 Ina 4 4 5 5 5 3 4 3 4 4 3 3 3 3 3 4 2 3 3 3 2 3 1 3 33 Ina 4 4 3 4 4 5 5 4 4 4 4 4 3 4 3 3 4 4 3 4 4 4 2 4 34 Ina 4 4 3 3 4 4 3 3 4 4 4 3 3 3 4 4 3 3 3 4 4 4 4 3 35 Ina 4 3 3 4 4 4 4 4 3 3 4 3 3 3 3 3 3 3 4 3 3 3 3 4 36 Ina 5 4 4 4 4 4 4 4 3 4 3 3 4 4 4 4 4 4 3 3 3 3 3 4 37 Ina 4 4 4 3 4 4 3 3 4 4 4 3 3 4 4 4 3 3 4 3 3 3 4 4 38 Ina 2 3 3 4 4 4 4 5 4 5 4 3 4 4 3 3 3 4 3 3 4 4 3 4 39 Ina 5 4 4 5 3 4 5 5 5 4 4 3 4 4 3 4 4 4 3 4 4 4 4 4 40 Ina 5 5 4 5 4 4 5 5 5 4 5 4 4 5 3 4 3 3 3 4 4 4 3 4 41 Ina 5 5 5 3 5 5 4 4 4 4 4 3 5 4 4 3 3 4 3 3 4 4 4 4 42 Ina 5 3 4 5 3 4 5 4 5 3 4 3 4 4 4 4 4 3 4 3 5 5 5 4 43 Ina 4 4 4 5 5 4 3 4 4 4 4 3 3 4 3 3 3 3 4 3 3 3 3 4 44 Ina 5 5 4 5 4 4 4 4 4 3 5 4 3 4 3 3 3 3 3 3 5 5 5 4 45 Ina 4 3 3 4 3 4 4 4 3 3 4 2 2 3 5 5 3 4 3 3 3 5 5 4 46 Ina 5 4 3 3 5 5 4 4 4 4 5 4 3 3 3 4 3 4 3 3 3 4 4 3 47 Ina 5 4 4 4 5 5 4 4 3 4 4 3 3 4 3 3 3 3 3 3 4 3 3 4 48 Ina 5 4 4 3 4 4 4 5 3 3 4 3 3 5 4 4 3 4 3 3 5 4 3 5 49 Ina 5 5 5 4 4 4 5 5 4 4 5 4 4 5 4 4 4 4 4 4 4 4 4 4

50 Ina 5 3 4 3 4 4 4 4 4 4 4 3 3 3 3 3 3 3 4 3 4 5 5 4 51 Ina 5 4 3 3 5 3 3 4 4 4 4 3 3 4 4 3 3 3 4 4 4 4 3 4 52 Ina 4 3 3 3 3 3 4 4 3 5 4 2 3 3 4 4 4 4 5 3 3 5 5 5 53 Ina 5 3 2 4 4 4 4 5 3 4 5 3 3 4 4 2 3 4 5 3 4 4 3 4 54 Ina 5 5 4 5 4 5 4 5 4 5 5 4 4 4 4 4 3 4 4 3 4 4 4 4 55 Ina 5 4 5 5 5 5 5 5 5 5 5 4 5 5 5 5 5 5 5 5 4 5 5 5 56 Ina 5 4 4 4 5 4 5 4 4 4 4 4 4 4 3 4 5 4 4 5 4 4 5 4 57 Ina 5 4 3 5 5 5 5 5 5 5 5 3 4 5 4 4 4 3 4 5 5 4 4 5 58 Ina 5 5 4 4 3 3 4 5 4 3 4 5 4 5 3 3 4 5 4 5 4 5 5 4 59 Ina 5 5 5 5 5 5 4 3 4 4 5 4 5 4 3 4 4 5 5 4 5 5 5 5 60 Ina 4 5 4 4 5 4 5 4 5 4 4 4 5 5 4 4 4 4 5 4 4 4 5 5 61 Ina 5 5 5 5 5 5 4 5 5 4 5 5 5 4 4 4 5 4 4 4 5 5 5 4 62 Ina 5 5 5 5 5 5 4 4 4 4 4 5 4 5 4 5 4 5 4 5 4 4 4 5 63 Ina 5 4 5 4 5 5 4 5 5 5 5 4 5 4 5 4 5 5 5 5 4 4 5 5 64 Ina 5 4 4 4 4 4 5 4 4 5 4 5 4 4 4 5 4 3 4 4 5 4 5 4 65 Ina 4 3 3 3 5 5 4 5 4 4 4 3 5 5 3 4 4 4 5 3 4 5 4 4 66 Ina 4 3 4 4 3 3 5 5 5 2 3 3 3 3 4 4 3 4 4 3 3 3 3 3 67 Ina 5 4 4 4 4 3 3 5 4 4 4 4 4 4 4 5 4 4 5 4 4 4 1 3 68 Ina 5 5 4 5 5 4 5 5 3 3 4 4 4 4 3 4 3 4 4 4 5 5 5 5 69 Ina 5 3 3 5 5 5 4 5 3 4 4 3 4 4 3 3 3 4 4 4 4 4 4 5 70 Ina 5 5 4 4 4 4 4 5 4 4 5 4 3 3 3 4 4 5 4 4 5 5 3 4 71 Ina 5 5 1 5 3 3 5 5 5 5 5 1 3 5 5 5 5 5 5 5 5 5 3 3 72 Ina 3 4 4 5 4 2 3 5 4 5 4 3 4 4 5 5 5 4 3 3 4 4 2 5 73 Ina 4 3 4 4 4 4 3 4 3 4 4 4 4 4 4 4 4 4 3 3 4 3 4 4 74 Ina 5 5 4 5 4 4 5 5 5 5 5 5 5 4 4 5 5 4 5 4 5 4 5 5 75 Ina 4 4 4 4 4 3 4 4 3 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4

76 Ina 5 5 5 5 5 5 5 5 5 5 5 4 4 4 3 3 3 4 4 4 4 5 4 4 77 Ina 5 5 4 5 5 4 5 5 4 4 4 3 3 3 4 4 4 4 4 4 4 5 4 4 78 Ina 4 4 5 4 4 4 4 4 4 4 5 3 4 4 4 4 4 4 4 4 4 3 4 4 79 Ina 5 3 5 5 5 5 5 5 5 5 5 5 5 5 5 3 3 3 3 3 3 3 3 5 80 Ina 5 5 5 5 5 5 5 5 5 5 5 3 5 5 4 4 4 4 4 3 4 4 5 5 81 Ina 5 3 5 5 5 5 4 4 4 4 4 3 3 3 3 3 3 3 5 5 5 5 5 4 82 Ina 4 4 4 5 3 5 5 5 3 4 4 3 3 4 3 4 3 5 4 3 4 4 3 4 83 Ina 4 3 4 5 4 4 5 4 4 4 5 3 3 4 4 4 3 4 5 3 3 3 3 4 84 Ina 5 3 3 4 3 3 4 5 5 4 4 4 4 3 4 3 3 4 4 4 3 4 3 3 85 Ina 5 5 5 5 4 4 5 5 5 5 4 3 4 5 3 4 4 4 5 3 4 5 5 5 86 Ina 4 4 4 4 4 4 3 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 87 Ina 4 4 5 5 4 4 4 4 4 4 4 3 3 4 3 4 3 3 4 3 3 3 3 3 88 Ina 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 89 Ina 5 4 4 4 5 5 5 5 5 5 5 3 4 4 4 4 3 5 4 4 4 5 4 4 90 Ina 4 4 3 4 5 5 4 4 4 3 4 3 4 4 4 4 4 3 4 4 3 4 3 4 91 China 5 5 5 5 5 5 4 3 5 4 3 2 4 5 5 3 4 5 4 3 5 5 3 5 92 China 5 3 3 4 3 2 4 2 2 4 5 4 3 5 4 3 5 4 2 4 3 3 4 5 93 China 5 4 3 4 4 5 3 3 4 5 3 4 5 4 3 5 4 3 5 4 3 2 4 5 94 China 5 5 4 4 5 5 4 5 4 5 4 4 3 4 4 4 5 4 4 4 5 5 4 5 95 China 4 3 5 3 4 4 3 3 4 3 4 4 3 4 3 4 4 5 3 4 4 3 3 4 96 China 4 3 3 4 3 5 4 4 3 4 4 4 2 4 4 4 4 4 4 4 4 4 3 3 97 China 4 4 4 5 4 4 3 5 4 4 4 4 5 4 3 5 4 4 5 4 4 3 4 4 98 China 3 4 5 4 3 2 3 4 4 5 3 5 4 3 3 4 3 2 3 4 5 4 4 4 99 China 4 2 5 4 3 2 4 3 3 4 5 4 4 4 5 3 4 4 4 4 3 3 4 4 100 China 5 5 4 4 5 5 4 5 4 5 5 4 5 4 5 5 4 5 4 5 5 5 4 5 101 China 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 4 5 5 5 5 5 4 4 5

102 China 3 4 4 5 3 2 3 4 5 4 3 5 4 3 4 3 3 2 4 3 5 4 4 4 103 China 4 4 4 4 4 4 4 4 3 4 3 5 5 4 3 5 5 4 5 4 5 4 3 4 104 China 4 3 4 3 3 3 3 4 3 5 5 3 4 5 4 3 5 5 3 4 5 5 5 5 105 China 5 4 4 4 5 4 4 4 4 4 4 3 4 5 5 4 4 4 4 3 4 4 4 4 106 China 2 2 3 3 3 4 2 2 3 2 3 3 2 3 3 2 3 2 2 2 3 1 1 2 107 China 3 3 4 2 2 2 3 4 5 5 5 4 3 5 4 4 3 3 2 3 3 4 3 3 108 China 5 4 4 4 3 3 4 5 4 5 5 3 3 4 4 5 5 4 3 4 5 5 4 5 109 China 5 5 5 4 4 4 5 5 5 5 4 4 5 4 4 4 3 3 5 5 5 5 5 5 110 China 1 2 4 5 3 2 1 2 3 5 4 2 3 1 3 2 4 5 2 1 3 2 5 1 111 China 3 3 3 3 3 3 3 3 3 3 3 2 3 3 3 3 3 3 3 3 3 3 3 3 112 China 5 3 3 4 2 5 5 5 3 2 5 5 4 3 2 5 3 3 3 3 2 4 4 3 113 China 5 5 5 5 5 4 5 5 5 5 5 4 4 5 5 5 4 5 5 4 5 5 5 5 114 China 5 4 2 4 2 2 4 5 4 3 4 3 3 5 4 3 3 4 3 3 4 4 4 4 115 China 4 2 2 3 4 4 4 4 3 4 5 4 3 3 3 4 3 4 4 5 3 3 3 3 116 China 3 4 3 4 4 3 3 4 5 4 4 3 3 4 5 4 4 5 4 3 4 3 3 4 117 China 4 4 4 5 5 5 4 5 5 4 5 5 4 5 5 4 5 5 4 5 4 5 4 5 118 China 4 3 5 4 3 5 3 4 5 4 3 4 4 4 3 3 4 5 5 4 3 3 4 5 119 China 4 3 5 4 3 2 4 4 3 3 3 2 4 5 5 4 3 3 2 5 4 3 3 5 120 China 3 4 4 5 5 5 5 3 4 4 5 5 5 5 5 4 4 3 4 5 5 5 4 3 121 China 5 4 4 3 4 3 4 3 3 4 3 3 4 4 3 4 4 3 3 3 3 4 4 4 122 China 3 4 4 4 3 4 3 4 5 3 1 3 4 3 4 5 4 3 3 4 4 3 4 4 123 China 5 4 4 4 4 4 5 4 4 5 5 4 4 3 4 4 4 3 4 4 4 4 3 5 124 China 5 3 2 4 3 2 3 4 3 3 4 3 3 4 3 3 3 2 3 2 2 4 2 2 125 China 5 3 4 3 3 3 4 4 3 3 4 4 4 4 3 3 3 4 4 4 3 4 4 3 126 China 4 4 3 3 4 5 3 3 4 5 4 4 4 3 5 4 3 5 4 3 5 5 4 5 127 China 5 4 4 3 4 5 4 5 4 5 5 4 4 4 3 4 3 3 3 3 4 4 4 4

128 China 4 4 3 3 3 3 4 5 4 4 5 3 2 4 3 3 3 3 3 2 3 4 4 3 129 China 2 4 4 4 4 4 3 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 130 China 5 4 4 5 4 4 4 5 3 3 5 4 3 5 5 5 3 5 3 5 5 4 4 5 131 China 5 4 5 3 4 2 4 4 4 4 5 4 5 5 4 4 4 4 4 4 4 4 4 5 132 China 4 5 4 5 4 4 4 3 4 3 4 3 4 5 3 4 3 4 5 4 3 4 3 4 133 China 4 5 4 3 5 4 3 3 4 4 3 4 5 4 4 3 3 3 4 4 4 5 5 5 134 China 5 4 4 2 3 4 4 4 3 2 4 4 4 4 4 4 3 4 4 4 5 5 5 4 135 China 3 3 3 3 3 3 4 4 4 5 4 3 4 5 5 4 3 3 4 4 3 4 5 4 136 China 4 2 3 2 3 2 4 3 3 3 2 4 3 2 3 2 3 4 3 3 2 3 3 3 137 China 4 4 5 4 4 3 5 4 4 4 5 4 5 4 4 4 4 3 4 4 5 4 3 4 138 China 4 3 3 5 5 4 5 4 5 4 5 5 5 4 4 4 4 5 5 4 4 3 5 5 139 China 5 4 3 5 5 5 3 3 5 3 3 4 3 3 4 5 5 3 4 5 3 4 4 5 140 China 2 1 2 2 2 3 2 3 2 2 3 3 3 3 2 2 2 2 2 3 3 3 3 3 141 China 4 2 2 4 4 3 3 4 3 3 4 3 2 4 4 4 4 4 3 4 4 3 3 3 142 China 4 3 4 4 4 3 4 5 3 3 4 3 3 3 3 3 4 4 3 2 3 2 3 3 143 China 4 4 4 4 3 4 3 4 5 4 3 4 3 4 4 3 3 4 4 3 5 2 4 4 144 China 4 5 5 4 4 5 4 5 4 5 4 3 3 4 4 4 5 3 4 3 4 4 5 4 145 China 4 5 4 4 4 3 4 4 4 5 4 3 4 5 3 3 4 5 5 4 4 3 4 4 146 China 1 1 2 3 2 2 1 1 1 1 3 2 2 3 1 1 1 2 3 1 2 2 1 1 147 China 2 2 4 3 4 4 4 4 4 4 5 2 3 4 3 4 5 3 4 3 4 5 3 4 148 China 3 4 4 4 4 3 4 4 4 5 4 4 3 3 5 5 4 4 4 3 3 4 4 4 149 China 3 3 3 4 4 3 2 2 2 2 2 2 3 3 3 3 3 3 3 3 3 3 3 3 150 China 2 2 3 2 2 1 2 1 2 3 2 2 3 2 2 3 2 2 2 3 2 2 3 2 151 China 5 3 3 3 4 4 5 5 5 4 3 3 3 4 3 3 3 4 3 3 3 3 3 4

Appendix C – Multiple Regression Output

Descriptive Statistics

Mean Std. Deviation N

CPE 3.9801 .82033 151

CON 3.9823 .61045 151

CIM 4.0225 .59757 151

CRE 3.7190 .50127 151

CLO 3.7550 .60450 151

Correlations

CPE CON CIM CRE CLO

Pearson Correlation CPE 1.000 .581 .523 .663 .652

CON .581 1.000 .624 .590 .598

CIM .523 .624 1.000 .607 .576

CRE .663 .590 .607 1.000 .697

CLO .652 .598 .576 .697 1.000

Sig. (1-tailed) CPE . .000 .000 .000 .000

CON .000 . .000 .000 .000

CIM .000 .000 . .000 .000

CRE .000 .000 .000 . .000

CLO .000 .000 .000 .000 .

N CPE 151 151 151 151 151

CON 151 151 151 151 151

CIM 151 151 151 151 151

CRE 151 151 151 151 151

CLO 151 151 151 151 151

Variables Entered/Removedb

Variables Variables Model Entered Removed Method

1 CLO, CIM, CON, . Enter CREa a. All requested variables entered. b. Dependent Variable: CPE

ANOVAb

Model Sum of Squares df Mean Square F Sig.

1 Regression 54.012 4 13.503 42.009 .000a

Residual 46.929 146 .321

Total 100.940 150 a. Predictors: (Constant), CLO, CIM, CON, CRE b. Dependent Variable: CPE

Coefficientsa

Unstandardized Standardized Collinearity Coefficients Coefficients Correlations Statistics

Zero- Toleran Model B Std. Error Beta t Sig. order Partial Part ce VIF

1 (Const -.712 .378 -1.884 .062 ant)

CON .258 .106 .192 2.429 .016 .581 .197 .137 .509 1.966

CIM .056 .108 .041 .519 .605 .523 .043 .029 .510 1.960

CRE .531 .140 .324 3.801 .000 .663 .300 .215 .437 2.288

CLO .390 .114 .287 3.413 .001 .652 .272 .193 .450 2.222 a. Dependent Variable: CPE

CollinearityDiagnosticsa

Variance Proportions Dimensi Model on Eigenvalue Condition Index (Constant) CON CIM CRE CLO

1 1 4.962 1.000 .00 .00 .00 .00 .00

2 .013 19.488 .80 .04 .00 .00 .21

3 .011 21.639 .05 .34 .25 .06 .35

4 .008 24.415 .03 .61 .69 .01 .00

5 .006 29.143 .12 .00 .06 .92 .43 a. Dependent Variable: CPE

Model Summaryb

Change Statistics

Std. Error R Mode R Adjusted of the Square F l R Square R Square Estimate Change Change df1 df2 Sig. F Change

1 .731a .535 .522 .56695 .535 42.009 4 146 .000 a. Predictors: (Constant), CLO, CIM, CON, CRE b. Dependent Variable: CPE

Residuals Statisticsa

Minimum Maximum Mean Std. Deviation N

Predicted Value 1.4515 5.2664 3.9801 .60007 151

Residual -1.78677 1.40664 .00000 .55934 151

Std. Predicted Value -4.214 2.144 .000 1.000 151

Std. Residual -3.152 2.481 .000 .987 151 a. Dependent Variable: CPE

Appendix D – T-test Output

Group Statistics

Nationali ty N Mean Std. Deviation Std. Error Mean

CON Ina 90 4.1759 .46229 .04873

China 61 3.6967 .68954 .08829

CIM Ina 90 4.1778 .43699 .04606

China 61 3.7934 .72108 .09232

CRE Ina 90 3.7333 .43108 .04544

China 61 3.6979 .59310 .07594

CLO Ina 90 3.8089 .54456 .05740

China 61 3.6754 .68036 .08711

CPE Ina 90 4.0222 .65304 .06884

China 61 3.9180 1.02136 .13077

Independent Samples Test

Levene's Test for Equality of Variances t-test for Equality of Means

Std. 95% Confidence Error Interval of the Sig. (2- Mean Differen Difference F Sig. t df tailed) Difference ce Lower Upper

CON Equal variances 7.056 .009 5.115 149 .000 .47920 .09369 .29408 .66433 assumed

Equal variances 4.752 96.112 .000 .47920 .10084 .27904 .67937 not assumed

CIM Equal variances 7.711 .006 4.075 149 .000 .38434 .09432 .19796 .57071 assumed

Equal variances 3.725 89.836 .000 .38434 .10318 .17935 .58932 not assumed

CRE Equal variances 2.522 .114 .425 149 .671 .03544 .08336 -.12928 .20016 assumed

Equal variances .400 101.855 .690 .03544 .08850 -.14009 .21097 not assumed

CLO Equal variances 1.919 .168 1.335 149 .184 .13348 .09999 -.06411 .33107 assumed

Equal variances 1.279 109.501 .203 .13348 .10432 -.07328 .34023 not assumed

CPE Equal variances 12.997 .000 .765 149 .446 .10419 .13624 -.16501 .37339 assumed

Equal variances .705 93.041 .483 .10419 .14778 -.18928 .39765 not assumed