Influence of Korean Wave and Laneige New Brands Ambassador (Lee Sung-Kyung) towards Consumer Buying Decision in Indonesia By Ayudha Tamara 014201400021 A Skripsi Presented To The Faculty of Business President University In Partial Fulfillment of The Requirements For Bachelor Degree In Management May 2018 PANEL OF EXAMINERS APPROVAL SHEET The panel of Examiners declare that the skripsi entitiled “INFLUENCE OF KOREAN WAVE AND LANEIGE NEW BRAND AMBASSADORS (LEE SUNG-KYUNG) TOWARDS CONSUMER BUYING DECISION IN INDONESIA” that was submitted by Ayudha Tamara majoring in Management from Faculty of Business was assessed and approved to have passed the Oral Examination on 16 May 2018. Panel of Examiners Grace Amin, S.Psi.,M.Psi., Psikolog Chair – Panel of Examiners Jhanghiz Syahrivar, M.M. Examiner I Siska Purnama Manurung, S.Kom., M.M. Examiner II i DECLARATION OF ORIGINALITY I declare this skripsi, entitled “INFLUENCE OF KOREAN WAVE AND LANEIGE NEW BRAND AMBASSADORS (LEE SUNG-KYUNG) TOWARDS CONSUMER BUYING DECISION IN INDONESIA”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 obtain a degree. Cikarang, Indonesia, 16th May 2018 Ayudha Tamara 014201400021 ii CONSENT FOR INTELLECTUAL PROPERTY RIGHT INFLUENCE OF KOREAN WAVE AND LANEIGE NEW BRAND AMBASSADORS (LEE SUNG-KYUNG) TOWARDS CONSUMER BUYING DECISION IN INDONESIA, the author hereby grants the above mentioned contribution to the President University, whereby, the University shall have the exclusive right to translate, in whole or in part, all or part of the publication of the conference in the copyright period, including renewal and expansion, and all subsidiary rights. The author reserves the right to re-publish the free version of the manuscript and only inform the University of the Intention to do so and to ensure that the university’s repeared verbatim. The author retains the copyright and other proprietary right, such as the patent and trademark rights of any process or procedure described in the contribution. The author assures that the contribution is original, has not been published, is not published elsewhere, and has obtained any necessary permission to quote or copy the illustrations of other sources (any such copies of such licenses shall be sent together with them). The author states that any named person as a contribution to the contribution knows the agreement and agree with the above assurances. Cikarang, Indonesia, 16th May 2018 Ayudha Tamara 014201400021 iii ABSTRACT The growth of cosmetic’s industry in Indonesia become rapid with the presence of local brands cosmetics and imported cosmetics brands. Laneige is one of imported brand cosmetics from South Korea. This research purpose is to determine factors that influence consumer buying decision to Laneige product skin care in Indonesia. This research use quantitative method in processing and analye data. The researcher got the data from questionnaire that have been distributing to 275 respondents in Indonesia and researcher has applied the random sampling method. An empirical of this research explained that Korean Wave has no influence (not significant) to Laneige product skin care toward Consumer Buying Decision in Indonesia. Meanwhile, Brand Ambassador has significant influence to Laneige skin care products towards Consumer Buying Decision in Indonesia. Keywords: Korean Wave, Brand Ambassador, Laneige, Consumer Buying Decision. iv ACKNOWLEDGEMENT My best gratitude to God Almighty for I can complete this thesis smoothly and valuably, so this thesis can be completed entitled “INFLUENCEOFKOREAN WAVE AND LANEIGE NEW BRAND AMBASSADORS (LEE SUNG- KYUNG) TO CONSUMER BUYING DECISION IN INDONESIA”. In this preparation of this thesis, researcher aware of limitations, capabilities, and knowledge of the researcher in the preparation, but the difficulties can be solve by several parties. Through this opportunity, researcher would like to express the deepest gratitude and say thank you for following parties helps and support before, during and after complete this thesis: 1. My beloved family, Dad, Mom, and My brothers who give me love, motivation, sending prayers and support. 2. Ms. Siska, as the researcher’s advisor. Who provide me advice, guidance, and help me a lot of things during the process of this thesis until this thesis have done. Thank you so much for your time, efforts, patients, and kindness during the process of this thesis. 3. My Cousin Suhendra Riswin, Yuni, and Era, thank you so much for your motivation, support and sending me prayers. 4. My best friends Amel, Michellia, Ayu, Fitri, Riri, Lady, Anggun, and Natali, Thank you for being my friends for this 3.5 years and I be grateful that you all always hear my story and give me motivation during this time. 5. Last but not least, my wannable friends thank you for your help and motivation during this thesis process. Glad to meet and know them as my partners, teachers, and friends, Thank you Sincerely, Ayudha Tamara v TABLE OF CONTENTS Page PANEL OF EXAMINERS APPROVAL SHEET ................................................................ i DECLARATION OF ORIGINALITY .............................................................................. ii CONSENT FOR INTELLECTUAL PROPERTY RIGHT ................................................... iii ABSTRACT ............................................................................................................... iv ACKNOWLEDGEMENT ............................................................................................. v TABLE OF CONTENTS .............................................................................................. vi CHAPTER I. INTRODUCTION .................................................................................... 1 1.1 Background .......................................................................................... 1 1.2 Problem Identification ......................................................................... 9 1.3 Research Questions ............................................................................ 10 1.4 Research Objectives ........................................................................... 11 1.5 Significant of Study ............................................................................. 11 1.6 Limitations .......................................................................................... 11 1.7 Thesis Organization ............................................................................. 12 CHAPTER II. Literature Review .............................................................................. 13 2.1 Literature Review .............................................................................. 13 2.1.1 The Advance of Korean Wave ............................................. 13 2.1.2 Branding .............................................................................. 15 2.1.3 Brand Ambassador .............................................................. 16 2.1.4 Consumer Decision ............................................................. 17 vi 2.2 Previous Research ............................................................................. 19 2.3 Research Gap ..................................................................................... 21 CHAPTER III. METHODOLOGY ............................................................................... 22 3.1 Theoretical Framework ..................................................................... 22 3.2 Hypothesis ......................................................................................... 22 3.3 Operational Definitions .................................................................... 23 3.4 Research Design ............................................................................... 26 3.5 Sampling Design ............................................................................... 26 3.6 Pre-test ............................................................................................. 27 3.7 Classic Assumption ............................................................................ 28 3.8 Multiple Regression ........................................................................... 29 3.9 Hypothesis Testing ............................................................................ 30 CHAPTER IV. RESULT & DISCUSSION ..................................................................... 32 4.1 Descriptive Analysis............................................................................ 32 4.2 Demographic Profiles ......................................................................... 34 4.3 Descriptive Statistic Analysis .............................................................. 42 4.4 Inferential Analysis ............................................................................. 43 4.5 Multiple Regression Analysis ............................................................. 46 4.6 Coefficient of Determination ............................................................. 47 4.7 Hypothesis Testing Result .................................................................. 47 4.8 Discussions ......................................................................................... 49 vii CHAPTER V. CUNCLUSION & RECOMMENDATION ............................................... 51 5.1 Conclusion .......................................................................................... 51 5.2 Recommendation ..............................................................................