CHAPTER I INTRODUCTION

This chapter explains about research background, research problem, research limitation, research objective, research usefulness, and literature review. Research background explains what the reason of the researcher to conduct this thesis. The research problem is research questions which are based on theoretical thoughts to obtain problem solving through research data. The research limitation explains about the limitation of this research such as the field of research, the amount of samples, etc. The research objective is things that would be achieved through the research process. The research usefulness explains about benefits for the science, telecommunication business and researcher that also can be used as reference for other research.

1.1. Problem Background The wireless telecommunication business in Indonesia has shown a good improvement since its beginning in 1990 era. Only in a few years, cellular service providers, which are the supporting companies of wireless telecommunication business, grow so fast in the last 15 years. The wireless telecommunication service was once used for business purposes, but now, it becomes the most popular communication tools for people. People now cannot be separated from their cellular phones. It is more likely as a primary needs than a luxury thing nowadays.

People usually search the easiest way to communicate each other by using cellular phones with a good service provider that provides wide network coverage, advanced technology, and of course with a good price. That is why the service providers in Indonesia are struggling hard to make their companies as the number 1 service providers in Indonesia. The competition among the service providers in Indonesia becomes tighter and their technology is progressively improving. Besides traditional voice communication services, service providers offer more advanced technology that makes the users more convenient. Not only for calls, cellular phones now can also send and receive messages, access mobile internet (by using WAP, GPRS, EDGE, UMTS, and HDSPA), make video calls, and download additional features. In Manado, now the development of cellular service providers is not too far behind the development in Java Island, especially in the capital city, Jakarta. There are about 7 providers in Manado. Four of them are GSM service providers and the rest are CDMA service providers. The GSM providers are Telkomsel, Indosat, XL, and Three, while the CDMA providers are TelkomFlexi, Fren, and Esia. Telkomsels products are Kartu Halo as the post-paid SIM card, and Simpati, and Kartu As as the pre-paid SIM card. Indosats products are Matrix as the post-paid SIM card, and Mentari and IM3 as the pre-paid SIM card. XLs products are XL post-paid and XL pre-paid. The CDMA products are all prepaids. In this competition era, consumers have many choices of products, so, if a company wants to win the market, it has to build a good relationship to its customers and engage the customers so that they will not go to other products. The company also has to be able to

communicate to its customers. A good marketing communication will make the relationship between the company and the customers tighter Marketing communication has been improved by companies in order to get customers as much as they can. In the early days, marketing communication was separated and applied one by one. Companies in the early days only rely on one or two communication tools. This situation makes the promotion was not effective and companies cannot maximize the profit. Because of that condition, companies now apply a new concept of marketing communication, which is the combination of all communication tools. This new concept is called Integrated Marketing Communication (IMC). By applying this new concept, companies hope that the communication way will be more effective and more engage the consumers. Hence, they will maximize profit. Based on the IMC tools that are Mass Communications and Personal Communications, the researcher only focuses on Mass Communication tools, which are Advertising, Sales Promotions, Events, and Public Relations in conducting this research.

1.2. Problem Statement Based on the situation from the background above, the problem statement is: y Do the Mass Communication modes influence the consumer decision in choosing telecommunication providers? y Which Mass Communication mode that has the most significant influence to the consumer decision?
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1.3. Research Limitation There are so many people are using cellular phone now. Because of the limitation of time and it is impossible to explore all of the users, so researcher only focus on the cellular phone users of any mobile phone providers (both GSM and CDMA) in Manado. The independent variables used are also limited only to the Mass Communication modes, which are advertising, sales promotions, events, and public relations, while the dependent variable is the consumers decision.

1.4. Research Objective 1. To find out if the Mass Communication modes influence the consumer decision in choosing telecommunication providers. 2. To find out which Mass Communication mode that has the most significant influence to the consumer decision.

1.5. Research Usefulness This research provides several benefits as follows: 1. The Science To give contribution in scientific work about the influence of the tools of Integrated Marketing Communication, especially Mass Communication, which are Advertising, Sales Promotions, Events, and Public Relations to the consumers decision in choosing telecommunication providers.

2. Telecommunication Business To provide information and recommendation about the most effective marketing communication to telecommunication business that can be used to attract more consumers. 3. The Researcher To improve the researchers knowledge about Integrated Marketing Communication, especially Mass Communication modes and also to sharpens the analyzing skill of the researcher.

1.6. Literature Review This sub-chapter contains the comparison of this research with the previous researches.

Table 1.1. Literature Review Title THE IMPACT OF VISUAL MERCHANDISING ON THE CONSUMER DECISION PROCESS FOR INTIMATE APPAREL Author Derry Law, Joanne Yip Year Variables Visual Merchandising (X) and Consumer Decision (Y) Tools of Analysis AxialCoding Stage Notes In contemporary intimate apparel retailing, the fashion and trend element becomes another key reason for consumers to purchase new

Title

Author

Year

Variables

Tools of Analysis

Notes intimate apparel and in order to be distinctive in the market place. Intimate apparel has paid a close attention to intensify its retail identity by unique Visual Merchandising strategy to arouse purchase.

Vitalija 2008 Consumer THE IMPACT OF Butkeviciene, Package CONSUMER Jugita Communication PACKAGE (X) and COMMUNICATION Stravinskien, Ausra Consumer ON CONSUMER Rutelione Decision DECISION Making Process MAKING PROCESS (Y)

Empirical Research

This research evaluates the influence of package components and features in stages of consumer decision making process and missing functions of package communication excluded in the model

Title HABITUAL BUYING PIRATED SOFTWARE BY CHINESE CONSUMERS

Author Fang Wang, Hongxia Zhang, Hengjia Zang, and Ming Ouyang

Year 2005

Variables Consumer Buying Habit

Tool of Analysis Descriptive

Notes The researcher established a research model by extending a model used by Ang et al. in studying Singaporeans buying pirated CD. . The findings were four personal and social factors found to be important in influencing Chinese consumers attitude toward software piracy, including value consciousness, normality susceptibility, novelty seeking, and collectivism.

In the first journal, the writers, Derry Law and Joanne Yip, were analyzing about the impact of visual merchandising to the consumers decision making. Based on the research, there were four reasons of looking for new intimate apparel, these are: physical condition, print media, peer influence, and self concept. The researcher took this journal as a reference because in this journal, it is implicitly said that among different kinds of promotional channel, printed media shared the highest influence in arousing the need to buy something, in this case, lingerie. The writer said that the unity of printed advertising and large posters in
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window display and store reinforces their memory of the new products and also, the repetition of the same advertising image further arouse customers intention to check out the promoted products. The finding of this journal really helps the researcher to conduct this thesis because the researcher is also going to examine the analysis the influence of mass communication modes, including advertising, to consumers decision. However, the researcher will not reduplicate the whole journal because there are some differences between what the writers was done and what will the researcher do in conducting this thesis. The differences are: first, the tool of analysis that was used was axial coding-stage, while the researcher is going to use multiple linear regressions in this thesis; the second one is the independent variable that was visual merchandising, while the researcher is going to use mass communication modes. Although there are some differences, there is also a similarity of the journal and this thesis, in which, this thesis is going to examine what the consumer decision is influenced by. From the second journal, The Impact of Consumer Package Communication on Consumer Decision Making Process by Vitalija Butkeviciene, Jugita Stravinskien, and Ausra Rutelione, one of the findings stated that the traditional communication is now inefficient. Companies prefer to use the modern communication that is more integrated. In the traditional way, companies applied the communicating tools separately and it was inefficient. Companies only focused in one communication tool, whereas there are many other marketing tools. Based on this finding, the researcher becomes more convenience to continue this thesis because there is a support from previous research about what the researcher wants to examine in this thesis. But still, the researcher thinks that the journal

needs to be improved. That is why the researcher conducts this thesis, hopes that this thesis will give some addition findings in marketing communication field. Another research in China on 2005 about Habitual Buying Pirated Software by Chinese Consumer was conducted by Fang Wang, Hongxia Zhang, Hengjia Zang, and Ming Ouyang. The researcher established a research model by extending a model used by Ang et al. in studying Singaporeans buying pirated CD. A survey was conducted. Hypotheses were tested through stepwise regressions. An exploratory factor analysis was carried out to analyze Chinese consumers attitude toward software piracy. The findings were four personal and social factors found to be important in influencing Chinese consumers attitude toward software piracy, including value consciousness, normality susceptibility, novelty seeking, and collectivism. Five attitude measures, which were important in influencing consumer purchase intention, were identified as reliability of pirated software, recognized social benefits of piracy, functionality of pirated software, risks of buying, and perceived legality of buying. An exploratory study identified three attitude attributes.

CHAPTER II THEORETICAL FRAMEWORK

In the chapter of Theoretical Framework, researcher presents several theories related to the subject of research. This chapter is purposely included to present the theories that will strengthen base the research. This chapter also provides the research hypothesis and conceptual framework that expected to guide the concept of this research.

2.1. Theories 2.1.1. Marketing In general, most people think that marketing is always about selling and advertising. In fact, those things are only a little part of marketing itself. To support this idea, there are some definitions of marketing based on some books and other sources. Kotler and Armstrong (2006, p.5) defined marketing as A social and managerial process by which individuals and groups obtain what they need and want through creating and exchanging value with other. In a narrower business context, marketing involves building profitable, value-laden exchange relationship with customers. Marketing as the process by which companies create value for customers and build strong relationships in order to capture value from customers in return. Kotler (2005, p.5) defined marketing as The task of creating, promoting, and delivering goods and services to consumers and businesses. Marketers are skilled in stimulating demand for companys products, but this is too limited a view of the tasks

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marketers performs. Just as production and logistics professionals are responsible for supply management, marketers are responsible for demand management. Marketing people are involved in 10 marketing types of entities: goods, services, experience, events, persons, places, properties, organizations, and ideas. Burns and Bush (2006, p.4) defined marketing as An organization function, not a group of persons or separate entity within the firm. It is also a set of processes and or a single tactic such as creating an end-aisle display. The processes are creating, communication, and deliver value to customers. Marketing is not trying to sell customer something; rather, it is providing customers with something the value. The objective of marketing is to create and manage customer relationships for the benefit of the organization and its stakeholders. American Marketing Association defined Marketing as An organizational function and a set of processes for creating, communicating, and delivering value to customers and for managing customers relationship in ways that benefit the organization and its stakeholders. Marketing includes the activities of all those engaged in the transfer of goods from producer to consumer not only those who buy and sell directly, wholesale and retail, but also those who develop, warehouse, transport, insure, finance, or promote the product, or otherwise have a hand in the process of transfer.

2.1.2. Marketing Communication Kotler and Keller (2006, p.496) defined Marketing Communications as The means by which firms attempt to inform, persuade, and remind consumers-directly or

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indirectly-about the products and brands that they sell. In a sense, marketing communications represent the voice of the brand and are a means by which it can establish a dialogue and build relationships with consumers. They also said that Marketing Communications perform many functions for consumers. Consumers can be told or shown how and why a product is used, by what kind of person, and where and when; consumers can learn about who makes the product and what the company and brand stand for; and consumers can be given an incentive or reward for trial or usage. Marketing Communications allow companies to link their brands to other people, places, events, brands, experiences, feelings, and things. Marketing Communications can contribute to brand equity by establishing the brand in memory and crafting a brand image. Furthermore, Kotler and Keller in the book Marketing Management (2006, p.496) also explained the six major modes of communication, which are: 1. Advertising Advertising is any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor. 2. Sales Promotion Sales Promotion is a variety of short-term incentives to encourage trial of purchase of a product or service. 3. Events and Experiences Events and Experiences are the company-sponsored activities and programs designed to create daily or special brand-related interactions. 4. Public Relations and Publicity

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Public Relations and Publicity are a variety of programs designed to promote or protect a companys image or its individual products. 5. Direct Marketing Direct Marketing is the use of mail, telephone, fax, e-mail, or Internet to communicate directly with or solicit response or dialogue from specific customers and prospects. 6. Personal Selling Personal Selling is a face-to-facet interaction with one r more prospective purchasers for the purpose of making presentations, answering questions, and procuring orders.

2.1.3. Consumer Behavior Schiffman and Kanuk (2007:3) defined consumer behavior as the behavior that consumers display in searching for, purchasing, using, evaluating, and disposing of products and services that they expect will satisfy their needs. Consumer behavior focuses on how individuals make decisions to spend their available resources (time, money, and effort) on consumption-related items. That includes what they buy, why they buy it, when they buy it, where they buy it, how often they buy it, how often they use it, how they evaluate that after the purchase, the impact of such evaluations on future purchase, and how they dispose of it. The American Marketing Association (2005:5) defined consumer behavior as the dynamic interaction of affect and cognition, behavior, and the environment by which human beings conduct the exchange aspects of their lives. In other words, consumer behavior involves the thoughts and feelings people experience and the actions they perform in consumption process. It also includes all the things in the environment that influence these thoughts, feelings, and actions. These include comments from other consumers,

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advertisements, price information, packaging, product appearance, and many others. It is important to recognize from this definition that consumer behavior is dynamic, involves interactions, and involves exchanges. Consumer behavior is dynamic because the thinking, feelings, and action of individual consumers, targeted consumer groups, and society at large are constantly changing. Consumer behavior involves interactions among peoples thinking, feelings, and actions, and the environment. Consumer behavior involves exchanges between human beings, in other words people give up something of value to others and receive something in return.

2.1.4. Consumer Buying Behavior Possibly the most challenging concept in marketing deals with understanding of why buyers do what they do (or do not do). But such knowledge is critical for marketers since having a strong understanding of buyer behavior will help shed light on what is important to the customer and also suggest the important influences on customer decisionmaking. Using this information, marketers can create marketing programs that they believe will be of interest to customers. As you might guess, factors affecting how customers make decisions are extremely complex. Buyer behavior is deeply rooted in psychology with dashes of sociology thrown in just to make things more interesting. Since every person in the world is different, it is impossible to have simple rules that explain how buying decisions are made. But, those who have spent many years analyzing customer activity have presented us with useful guidelines in how someone decides whether or not to make a purchase.

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Customers make purchases in order to satisfy needs. Some of these needs are basic and must be filled by everyone on the planet (e.g., food, shelter) while others are not required for basic survival and vary depending on the person. It probably makes more sense to classify needs that are not a necessity as wants or desires. In fact, in many countries where the standard of living is very high, a large portion of the populations income is spent on wants and desires rather than on basic needs

2.1.5. Buying Decision Process This section describes the influential factors, which is affecting consumer buying decision. The process of buying decision starts as soon as the consumer choosing and buying product or service. If the customer feels dissatisfied, he or she will not do anything and if feel satisfied, he/she will do decision about what they are desire to have. In buying decision process, there are also some factors that influence decision. Buying decision is an important study, which is related with marketing, because marketing is one of the very essential studies in economics. The importance of marketing theory enables every business organization to search the real needs of customer and increase the interest of products and services in order to stimulate sales. It requires knowledge of consumer behavior with the purpose to know the characteristics of the people in the market to meet their needs, and make them satisfy.

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2.1.5.1. Stages of the Buying Decision Process Kotler and Armstrong (2006:148) stated that consumer passes through five stages: Figure 2.1. Stages of Buying Decision Process Need Recognition

Information Search

Evaluation of Alternatives

Purchase Decision

Postpurchase Behavior

1. Need Recognition The buying process starts with need recognition-the buyer recognizes a problem or need. The need can be triggered by internal stimuli when one of the persons normal needs-hunger, thirst, sex-rises to a level high enough to become a drive. The need can also be triggered by external stimuli. For example, an advertisement or a discussion with a friend might get you thinking about buying a new car.

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2. Information Search An interested consumer may or may not search for more information. If the consumers drive is strong and satisfying product is near at hand, the consumer is likely to buy it then. If not, the consumer may store the need in memory or undertake an information search related to the need. For example, once a person decided need a new computer, at the least, she will probably pay more attention to computer ads, computer owned by friends, and computer conversations. Or she may actively look for reading material, phone friends, and gather information in other ways. The amount of searching will depend on the strength of her drive, the amount of information start with, the ease of obtaining more information, the value she place on additional information and the satisfaction she gets from searching. Consumer information source come from several sources: a. b. Personal sources (family, friends, neighbors, acquaintances), Commercial sources (advertising, sales people, dealers, packaging, displays), c. d. Public sources (mass media, consumer-rating organizations), Experiential sources (handling, examining, using the product).

3. Evaluation of Alternatives Alternative evaluation is how the consumer processes information to arrive at brand choices. Unfortunately, consumers do not use a simple and single evaluation process in all buying situations. Instead, several evaluation processes are at work. How consumers go about evaluating purchase alternatives depends on the individual consumer and the specific buying situation. Sometimes consumers make buying decisions on their own; sometimes they turn to friends, consumer guides, or salespeople for buying advice.
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4. Purchase Decision In the evaluation stage, the consumer ranks brands and forms purchase intentions. Generally, the consumers purchase decision will be to buy the most preferred brand, but two factors can come between the purchase intention and the purchase decision. The first factor is the attitudes of others. If someone important to a person thinks that he should buy the lowest-priced car, then the chances of his buying a more expensive car are reduced. The second factor is unexpected situational factors. The consumer may form a purchase intention based on factors such as expected income, expected price, and expected product benefits. However, unexpected events may change the purchase intention. For example, the economy might take a turn for the worse, a close competitor might drop its price, or a friend might report being disappointed in one preferred car. 5. Post-purchase Behavior After purchasing the product, the consumer will be satisfied or dissatisfied and will engage in post-purchase behavior of interest to the marketer. What determines whether the buyer is satisfied or dissatisfied with a purchase? The answer lies in the relationship between the consumers expectations and the products perceived performance. If the product falls short of expectations, the consumer is disappointed; if it meets expectations, the consumer is satisfied; if it exceeds expectations, the consumer is delighted.

2.2.

Previous Research Beside some theories from the books, the researcher also obtained information from previous researches that might support this thesis. The theories to build this thesis are
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from the book, but, there is any possibility that a new theory might be revealed from the previous researches. In 2002, Loretta N. Satterwaite and John J. Haydu from University of Florida US, conducted research in Florida about Consumers Buying Habits of Environmental Horticulture Products. The researcher stated that the purpose of the study was to ascertain the buying habits of consumers in Florida regarding environmental horticulture products. To obtain the needed information, a garden center exit survey was conducted in 2002 under the auspices of the Florida Nurseryman and Growers Association. The research results were the category of convenience/location as the major reason for shopping at a particular store. Other categories included price, quality, service, information, and other. Most respondents were shopping for non-plant (hardgood) items, but when shopping for plants, flowering plants for the outdoors ranked first. The second journal is The Impact of Consumer Package Communication on Consumer Decision Making Process by Vitalija Butkeviciene, Jugita Stravinskien, and Ausra Rutelione. One of the findings stated that the traditional communication is now inefficient. Companies prefer to use the modern communication that is more integrated. In the traditional way, companies applied the communicating tools separately and it was inefficient. Companies only focused in one communication tool, whereas there are many other marketing tools. Based on this finding, the researcher becomes more convenience to continue this thesis because there is a support from previous research about what the researcher wants to examine in this thesis. But still, the researcher thinks that the journal needs to be improved. That is why the researcher conducts this thesis, hopes that this thesis will give some addition findings in marketing communication field.

19

Another research in China on 2005 about Habitual Buying Pirated Software by Chinese Consumer was conducted by Fang Wang, Hongxia Zhang, Hengjia Zang, and Ming Ouyang. The researcher established a research model by extending a model used by Ang et al. in studying Singaporeans buying pirated CD. A survey was conducted. Hypotheses were tested through stepwise regressions. An exploratory factor analysis was carried out to analyze Chinese consumers attitude toward software piracy. The findings were four personal and social factors found to be important in influencing Chinese consumers attitude toward software piracy, including value consciousness, normality susceptibility, novelty seeking, and collectivism. Five attitude measures, which were important in influencing consumer purchase intention, were identified as reliability of pirated software, recognized social benefits of piracy, functionality of pirated software, risks of buying, and perceived legality of buying. An exploratory study identified three attitude attributes.

2.3.

Research Hypothesis Research hypothesis in this research is:

1. Mass Communication modes influence the consumer decision in choosing mobile phone providers in Manado simultaneously. 2. Mass Communication modes influence the consumer decision in choosing mobile phone providers partially.

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2.4.

Conceptual Framework

Advertising

Sales Promotions

Consumer Decision

Events

Public Relations

This research starts from the Mass Communication modes, which are advertising, sales promotion, events, and public relation. This research is aimed to find out the influence of those marketing communication modes to consumers decision partially or simultaneously.

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CHAPTER III RESEARCH METHOD

This chapter explains about describe type and sources of data, this research will be conducted with two sources of data: Primary data will obtain by direct questionnaire that will distribute to employees and secondary data will gathered from some related books, articles in magazines or news paper, internet, and all necessary sources from library. Describe the population and sampling method, each research variable definition along with the measurement, describes data analysis method used in the research process.

3.1

Data Sources and Data Collection Method All the data in this research are from primary data and secondary data. The primary data in this research derived from questionnaires that directly distributed and collected by the researcher. While secondary data are information that has been collected for some other purpose, the sources of secondary data can be external or internal sources The research data will be collected through two main data collection method: 1. Primary Data - Questionnaire The data collected through questionnaires will be distributed to the respondents and they have to read and fill the questionnaire directly. - Face-to-face Interview Face-to-face interview will be done to the restaurant management.

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2.

Secondary Data - Library research The research will be by books or any literature that contains information about the research and theories - Internet browsing Internet browsing regarding the research and theories of the research will ne used

3.2

Population and Sample

3.2.1. Population Population refers to the entire group of people, events, or things of interest that the researcher wishes to investigate (Sekaran, 2003:265). The population of this research is the cellular phone users in Manado.

3.2.2 Sample A sample is a subset of the population. It comprises some members selected from it. In the other words, some, but not all, elements of the population would form the sample. A sample is thus a subgroup of subset of the population (Sekaran, 2003:266). The sample of this research is limited to 100 cellular phone users in Manado.

3.2.2.1 Sample Criteria The respondents came from the users cellular phone service that provided by cellular providers. All respondents use mobile phone, whether GSM or CDMA, or both

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GSM and CDMA. For age, gender, occupation, and income, researcher use random sample to the cellular provider users in Manado.

3.3

Definition of Variables

3.3.1 Variable X X1 = Advertising

X1 is the advertising (TV commercials, posters, flyers, billboard, etc) that companies use to attract the consumer. X2 = Sales Promotions

X2 is the Sales Promotions that companies use to attract consumers.

X3

Events

X3 is Events that companies use to attract consumers.

X4

Public Relations

X4 is Public Relations that companies use to attract consumers.

3.3.2 Variable Y Y= Consumer Decision

It means that the decision is undertaken by consumer in regard to a potential market transaction of a product or services.

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3.4. Variables Measurement It is important for this research to use the scaling method, because by implementing the scaling method it will ease the analysis of data. In the scaling method the collected data will be converted into meaningful information therefore will be easier to understanding the result. For this research, the researcher will use the Likert scale method for decision making. Malhotra (2002:284) defines the Likert Scale as An Interval scale that specifically uses the five response categories ranging from strongly disagree to strongly agree which requires the respondents to indicate a degree of agreement or disagreement with a series of statements related to the stimulus. The Likert scale has been chosen to consider that the data from decision making is based on the respondents experience and attitude on Experiential Marketing and Customer Loyalty. By using the Likert Scale, respondents will not have problems in understanding and filling out the questionnaire, and it is easy for the researcher to measure, interpreting and analyze the data.

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In this kind of scale, variables will be measured on five points of scale (1, 2, 3, 4, and 5) as shown below: Table 3.1. Grading point of Decision Making Statement Strongly agree Agree Uncertain Disagree Strongly disagree Source: Data Processed 2009 Score 5 4 3 2 1

3.5.

Data Analysis Method

3.5.1. Multiple Linear Regression Analysis Linear regression is used to model the value of a dependent scale variable based on its linear relationship to one or more predictors (SPSS help tutorial). The linear regression model assumes that there is a linear, or "straight line," relationship between the dependent variable and each predictor. Multiple linear regressions involves more than one predictor variable (Xk). Cooper and Schindler (2001, p.767) stated that multiple regression analysis is a technique to observed value of more than one X to estimate or predict corresponding Y value. Multiple regressions is a descriptive tool used to (1) develop a self-weighting estimating equation by which to predict values for a dependent variable from the values of

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independent variables, (2) control confounding variables to better evaluate the contribution of other variables, or (3) test and explain a causal theory. The formula of multiple regression models in this research is shown below: Y = a + b1x1 + b2x2 + b3x3 + + b4x4 Where: Y = Consumers Decision of Choosing Telecommunication Providers a = The constant, when all the independent variable equal to 0 b1,b2,b3,b4 x1,x2,x3,x4 = = The regression coefficient of each variable Mass Communication tools (Advertising, Sales

Promotions, Events, and Public Relations)

3.5.2 Steps of Multiple Regressions Analysis There are also some steps of Multiple Regressions analysis. They are outline as follow (Hair et al 1998): 1. Objective of Multiple Regressions Select the objective, prediction, and explanation and then dependent and variable. 2. Research Design of a Multiple Regression Determine the sample size to ensure statistical power of the significance testing and the generalizability of the result. independent

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3. Assumption in Multiple Regression Analysis Find out assumption of linearity, constant variance of the error terms, independence of the error terms, and normality of term distribution. 4. Estimating the Regression Model and Assessing Overall Model Fit In this stage, must accomplish three basic tasks: select a method for specifying the regression model to be estimate, asses the statistical significance of the overall model in predicting the dependent variable, and determine whether any of the observations exert an undue influence on the result. 5. Interpreting the Regression Variety Evaluate the prediction equation with the regression coefficient and then evaluate the relative importance of the independent variables with the beta coefficients. 6. Validation of the Result The final step is ensuring that it represents the general population and is appropriate for the situation in which it will be use.

3.5.3 Testing of Classical Assumptions According to Sulaiman (2004:87), a multiple linear regression model should meet some basic assumptions as seen below:

3.5.3.1 Multicollinearily Multicollinearity shows the intercorrelatioon of independent variables. R2s near 1 violate the assumption of no perfect collinearity, while high R2 increases the standard
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error of beta coefficient and makes assessment of the unique role of each independent difficult or impossible. To asses multicollinearity, researchers can use tolerance or VIF, which build in the regressing of each independent on all the others. Even when multicollinarity is present, note that estimates of the importance of other variables in the equation (variable which are not collinear with others) are not affected. Tolerance is 1 R2 for the regression of those independent variables on all the other independents, ignoring the dependent. There will be as many tolerance coefficients as there are independent. The higher the intercorrelation of the independents, the more the tolerance will approach to zero. As a rule of thumb, if tolerance is less than .20, a problem with multicollinearity is indicated. Variance-inflation factor or VIF which is simply the reciprocal of tolerance. Therefore, when VIF is high show multicollinearity and instability of the b and beta coefficient. These two variables are provided in the SPSS output.

3.5.3.2 Heteroscedasticity Newbolt, et.al (2003:508) explained that Models in which the errors do not all have the same variance are said to exhibit heteroscedasticity. When this phenomenon is present, the least square is not the most efficient procedure for estimating the coefficients of the regression model. Moreover, the usual procedure for deriving confidence interval and test of hypothesis for these coefficients are no longer valid. There are some tests for detecting heteroscedasticity:

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1.

Sulaiman (2004:88) says that Scatter plot is the residuals against an independent variable. A model can be concluded not apparent of heteroscedasticity if the scatter plot does not form any pattern.

2.

Spearman correlation, highly recommended for a small samples model, is usually less than 30 samples. A model is said to be infected by heteroscedasticity if the spearman coefficient or correlation has significant value (Sig.<0.05) toward the residual.

3.5.3.3 Normality In multiple linear regression models, the residual is assumed to be normally distributed. A residual is the difference between the observed and model-predicted values of the dependent variable. The residual for a given product is the observed value of the error term for that product. A histogram or P-P plot of the residuals can help researchers to check the assumption of normality of the error term. The requirements are as follows: 1. The shape of the histogram should approximately follow the shape of the normal curve 2. The P-P plotted residuals should follow the 45-degree line.

3.5.3.4 Autocorrelation Autocorrelation is the correlation between some observed data that is organized based on time series or data in a certain time or is cross-sectional. It is attempt to test is there any correlation between errors in t period and t-1 period in a linear regression model. Autocorrelation appears because if there continues observation in a time series, this problem

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emerges of the residual from one observation tp another. Autocorrelation could be identified by computing the critical value of Durbin-Watson Statistic (d-test).

3.5.4. Testing the Goodness of Fit 3.5.4.1 Multiple Coefficient Correlation (R) Correlation can be measured by means of the correlation coefficient, usually represented by letter R. It indicates the relationship between all independent variables (X) with dependent variable (Y). The coefficient is Zero if there is no relationship between two variables; 1.0 if there is a perfect positive correlation between variables (they increase together); -1.0 if there is perfect negative correlation between variables (one increases and the others decreases); Between 0 and 1.0 if there is some positive correlation; Between 0 and 1.0 if there is some negative correlation.

According to Ticehurst (2000), the closer the coefficient is to 1.0, the greater the correlation. Multiple coefficient correlation for two predictors equation is formulated as:

F17X1Y + F27X2Y + F37X3Y + .. + Fn7XnY RY =

7Y2
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3.5.4.2 Coefficient of Determination (R2) Coefficient of determination (R2) is the amount of common variance in X and Y, two variables in associations. In predicting the values of Y without any knowledge of X, the best estimate would be Y (Cooper and Schindler, 2001). It measures how far the ability of a model in explaining variation of dependent variable. The value of coefficient of determination is between 0 and 1. After R is found, the R2 can be determined. The result of R2 is the contribution percentage of influencing factors to the dependent variable (Sumodiningrat, 1999). SPSS (Statistical Package for Social Science) software version 13.0 will be used in this research.

3.5.5 Coefficient of Determination According to Newbolt, et.al (2003:385), this R2 provides a descriptive measure of the proportion or percent of the total variability that is explained by the regression model. Besides that, it is often interpreted as the percent of variability in Y that is explained by the regression equation. In addition Newbolt, et.al (2003:430) says that. The Coefficient of determination (R2) routinely is used as a descriptive statistic to describe the strength of the linear relationship between the independent variables and the dependent variables.

3.5.6 Hypothesis Testing In order to test the hypothesis, a statistical analysis such as Ftest and Ttest need to be calculated. The Ftest and Ttest will be useful in a situation when the researchers need to find

32

out the relationship between dependent and independent variables. When Ftest and Ttest are given and compared to the Ftable and Ttable, the hypothesis could be examined.

3.5.6.1 Ftest An Ftest as any statistical test in which the test statistical has an F-distribution if the null hypothesis is true. The Ftest is used to determine the whole effect of all independent variables to a dependent variable. This test done by comparing the Fvalue with Ftable . If Fvalue is greater than Ftable . Ho is rejected and H1 is accepted the value off is done by formula: Then calculate F as F= Where, RSSi = residual sum of squares of model i = degrees of freedom

(p2 p1, n p2)

The null hypothesis, that none of the additional p2 p1 parameters differs from zero, is rejected if the calculated F is greater than the F given by the critical value of F for some desired rejection probability (e.g. 0.05).

3.5.6.2 Ttest A Ttest is any statistical hypothesis test in which the test statistical has a t distribution if the null hypothesis is true. The Ttest is used to determine the effect of each independent variable to dependent variable individually, considering the other variables remain constant.
33

This test is done by comparing the tvalue with ttable. The level of significance is 5% ( = 0.05). If tvalue is greater than ttable H0 is rejected and H1 is accepted. The value of t is done by formula: t= Where, bj = jth variable coefficient
j=

 

jth parameter

Sbj = jth standard deviation

34

CHAPTER IV RESULT AND DISCUSSION

4.1 Result

4.1.1. Characteristics of Respondent The respondents of this research were cellular phone users, whether GSM or CDMA, and not specified to any certain telecommunication providers. The respondents are classified into gender, occupation, income, and gender.

4.1.1.1. Gender Figure 4.1 Classification of Respondents based on Gender

Female 53%

Male 47%

Source: data processed 2010

The characteristic of respondents based on age is shown in figure 4.1. It shows that 53% of the respondents are female and the rest 47% are male.

35

4.1.1.2. Occupation Figure 4.2. Classification of Respondents Based on Occupation

Student/College Student 8% 16% 56% 16% Entrepreneur Other Employee Teacher/Lecturer

4%

Source: data processed 2010

The characteristic of respondents based on occupation is shown in figure 4.2. the respondents are divided into 5 kinds of occupation. The highest percentage of the respondents comes from students/college students, which is 56%. The second highest comes from teachers/lecturers and employees, 16% both. The third highest comes from other occupations that are not classified, such as housewife and unemployment, which is 8%. And the least comes from entrepreneur, which is 4%.

36

4.1.1.3. Age Figure 4.3. Classification of Respondents Based on Age

3% 17% 4% 36% 15 - 20 years old 21 - 25 years old 26 - 30 years old 40% 31 - 35 years old 36 years old

Source: data processed 2010

From the chart above, we can see that the most respondents are between 21 25 years old, which is 40%, then, followed by the respondents who are between 15 20 years old. Respondents who are between 31 35 years old are 17%, followed by respondents who are between 26 30 years old (4%), and respondents above 36 years old (3%).

37

4.1.1.4. Income Figure 4.4. Classification of Respondents Based on Income per Month

8% 20% 48%

Rp. 0 - Rp. 1.000.000 Rp. 1.000.001 - Rp. 2.000.000 Rp. 2.000.001 - Rp. 3.000.000 Rp. 3.000.001

24%

Source: data processed 2010

The characteristic of respondents based on income per month is clearly shown in figure 4.4. The respondents are divided into four classes. It shows that the highest

percentage 48% derived from income below Rp. 1.000.000; followed by income Rp. 1.000.001 Rp. 2.000.000, which is 24%; Income Rp. 2.000.001 Rp. 3.000.000 with 20%, and the lowest percentage of respondents comes from income Rp. 3.000.000 which is only 8%.

38

4.1.2 Data Analysis In order to analyze the influence of mass communication modes on consumers decision of telecommunication providers, the writer was using the multiple linear regression analysis. To apply the regression procedure, Consumer Decision as the dependent variable is selected and the independent variable are the elements of Mass Communication Modes, which are advertising, sales promotion, events, and public relation. Multiple linear regression model is used to determine the effect of several independent variables on a dependent variable. The model of this research is:

Y = b0 + b1x1 + b2x2 + b3x3 + b4x4+ e

Where, Y x1 x2 x3 x4 = = = = = Consumer Decision Advertising Sales Promotion Events Public Relation Regression coefficient of each variable Random error

b0, b1, b2, b3, b4 = e =

39

This analysis was calculated by using the SPSS (Statistical Package for Social Science) software. With the computerized calculation, it can ensure the accuracy of the analysis.

4.1.3 Result of Classical Assumption 4.1.3.1 Multicollinearity Table 4.1 Multicollinearity Test
Coefficients(a)

Model

Collinearity Statistics Tolerance VIF 1.492 1.915 1.834 2.833

.670 .522 .545 .353 a Dependent Variable: Consumer_Decision

(Constant) Advertising Sales_Promotion Events Public_Relations

Source: data processed 2010 The model concluded to be free from multicollinearity if the tolerance value is more than 0.2 and VIF value is less than 10. Table 4.1. shows that the tolerance value for Advertising is 0.670, Sales Promotion is 0.522, Events is 0.545, and Public Relation is 0.353. It also shows that the VIF value for Advertising is 1.492, Sales Promotion is 1.915, Events is 1.834, and Public Relation is 2.833. Since all tolerance value is more than 0.2 and VIF value is less than 10, then the model is concluded that it is free from multicollinearity.

40

4.1.3.2 Heteroscedasticity In figure 4.5 were shown the result of heteroscedasticity test. Figure 4.5 Heteroscedasticity Test Output

Source: Data processed, 2009 Figure 4.5 is Scatterplot graphic that is used to test the heteroscedasticity. It shows that the pattern of the dots is spreading and does not create a clear pattern, and the dots are spreading above and below 0 (zero) in the Y axis. Thus, this proves that the model is free from heteroscedasticity, so the model can be used to predict the Consumers Decision based on the independent variables Advertising, Sales Promotion, Events, and Public Relation.
41

4.1.3.3 Normality To identify the normality test, figure 4.6 will shows the graphic results for the normality test. Figure 4.6 Normality Test Output

Normal P-P Plot of Regression Standardized Residual

Dependent Variable: Consumer_Decision

1.0

Expected Cum Prob

0.8

0.6

0.4

0.2

0.0 0.0 0.2 0.4 0.6 0.8 1.0

Observed Cum Prob

Source: data processed 2010 Figure 4.6 shows that the data that is represented by dots are spreading near the diagonal line and spreading follows the direction of the diagonal line. This proves that the model has passed the Normality Test.

42

4.1.3.4 Autocorrelation Table 4.2 shows the result of the Autocorrelation Test. Table 4.2 Autocorrelation Test Output
Model Summary(b)

Model

Durbin-Watson

1 2.012 a Predictors: (Constant), Public_Relations, Advertising, Events, Sales_Promotion b Dependent Variable: Consumer_Decision

Source: data processed 2010 Table 4.2 shows that the critical value is 2.012, which means the model is free from autocorrelation. For more explanation see table 4.3.

Table 4.3 Critical Values of the Durbin-Watson Test Statistic

Source: Data Processed, 2010 This research used a = 0.05 to identify the autocorrealation which could be examined in table 4.4. From Table 4.4 shows that the critical value of Durbin-Watson are
43

2.012 which in the area No Autocorrelation, concludes that the model is free from autocorrelation.

4.1.4. Coefficient of Determination Table 4.4 Coefficient of Determination

Model Summary(b)

Change Statistics Std. Error R Mod R Adjusted of the Square F el R Square R Square Estimate Change Change df1 df2 1 .939(a) .882 .877 .23461 .882 178.098 4 95 a Predictors: (Constant), Public_Relations, Advertising, Events, Sales_Promotion b Dependent Variable: Consumer_Decision

Sig. F Change .000

DurbinWatson 2.012

The coefficient of determination is identified by R2 = 0.882 which is a correlation coefficient quadrate (0.939)2 = 0.882. R square is usually called coefficient of determination which is 0.882 or 88.4% which means Consumers Decision (Y) is able to be explained by Advetising, Sales Promotion, Events, and Public Relation, and the rest 11.8% are caused by other factors.

4.1.5. Result of Multiple Linear Regression Analysis The interpretation of Multiple Linear Regression Analysis will be shows at table 4.5.

44

Table 4.5 The Multiple Linear Regression Analysis Output

Coefficients(a) Standardiz ed Coefficien ts Beta .131 t -.192 3.039 9.413 5.207 4.855 Sig. .848 .003 .000 .000 .000

Mo del 1

Unstandardized Coefficients Std. B Error (Constant) Advertising -.037 .159 .194 .052

95% Confidence Interval for B Lower Upper Bound Bound -.422 .055 .298 .151 .137 .347 .263 .458 .337 .327

Correlations Zeroorder .562 .839 .742 .835 Partial .298 .695 .471 .446 Part .107 .331 .183 .171

Collinearity Statistics Tolera nce VIF .670 .522 .545 .353 1.492 1.915 1.834 2.833

Sales_Promo .378 .040 .458 tion Events .244 .047 .248 Public_Relat .232 .048 .288 ions a Dependent Variable: Consumer_Decision

Source: data processed 2010

The multiple linear regression models is used to determine the effect of several independent variables on a dependent variable. The calculation was done by using the SPSS 14.0. software. The computerized calculation ensures the accuracy of the analysis. The analysis output is described in table 4.5. From the result in table 4.5., the model is defined as:

Y = -0.037 + 0.159 X1 + 0.378 X2 + 0.244 X3 + 0.232 X4

Where: Y X1 = Consumers Decision = Advertising

45

X2 X3 X4

= Sales Promotion = Events = Public Relation

 Constant ( ) -0.037 means that if all of the independent variables equal to zero, then the Consumers Decision will decrease as much as 0.037 points.  If the others are constant or equal to zero, an increase of one point in Advertising (X1) will result in an average increase of at least 0.159 in Consumers Decision (Y).  If the others are constant or equal to zero, an increase of one point in Sales Promotion (X2) will result in an average increase of at least 0.378 in Consumers Decision (Y).  If the others are constant or equal to zero, an increase of one point in Events (X3) will result in an average increase of at least 0.244 in Consumers Decision (Y).  If the others are constant or equal to zero, an increase of one point in Public Relation (X4) will result in an average increase of at least 0.232 in Customer Loyalty (Y).

4.1.6. Hypothesis Testing This research shows the influence of Mass Communication Modes (Advertising, Sales Promotion, Events, and Public Relation) on Consumers Decision as the dependent variable partially and simultaneously. The F-test was used to determine the simultaneous effect, while the T-test was used to determine the partial effect of each independent variable on the dependent variable.

46

4.1.6.1 F-Test The simultaneously F-test was conducted to identify whether the independent variables which consist of Advertising (X1), Sales Promotion (X2), Events (X3), and Public Relation (X4) have any relationship with Consumers Decision (Y) simultaneously. Table 4.6 describes the F-test result.

Table 4.6 Simultaneously Test (F-Test) Output

ANOVA(b) Sum of Squares 39.211 5.229

Model 1

df 4 95

44.440 99 a Predictors: (Constant), Public_Relations, Advertising, Events, Sales_Promotion b Dependent Variable: Consumer_Decision

Regression Residual Total

Mean Square 9.803 .055

F 178.098

Sig. .000(a)

Source: data processed 2010 H0:

1= 2= 3= 4=0

(Advertising (X1), Sales Promotion (X2), Events (X3), and Public Relation (X4) have no influences on Consumers Decision (Y) simultaneously).

Ha:

1= 2= 3= 40

(Advertising (X1), Sales Promotion (X2), Events (X3), and Public Relation (X4) have any influences on Consumers Decision (Y) simultaneously).

If: Fvalue > Ftable Reject H0 Fvalue < Ftable Accept H0

By using the level of significance of 0.05 ( = 0.05) and degree of freedom (df) = 5; found:
47

178.098 > 2.31

Since the Fvalue is greater than Ftable, H0 rejected and Ha is accepted, which means Advertising (X1), Sales Promotion (X2), Events (X3), and Public Relation (X4) have any influences on Consumers Decision (Y) simultaneously.

4.1.6.2 T-Test The partial test (t-test) was conducted to identify the relation between the independent variables and dependent variable partially or individually. In conducting the TTest will be used table 4.7. Table 4.7 Partial Test (T-Test)
Coefficients(a) Unstandardized Coefficients B -.037 .159 .378 .244 Std. Error .194 .052 .040 .047 .048 Standardized Coefficients Beta -.192 .131 .458 .248 .288 3.039 9.413 5.207 4.855 .848 .003 .000 .000 .000

Model

Sig.

(Constant) Advertising Sales_Promotion Events Public_Relations

.232 a Dependent Variable: Consumer_Decision

Source: data processed 2010

From table 4.7 found the tvalue for each independent variable, which for Advertising (X1) tvalue = 3.039 and ttable = 1,984 which tvalue > ttable = 3.039 > 1,980. Therefore, H0 is rejected and Ha is accepted, which means Advertising is significantly

48

influence Consumers Decision. The analysis shows that generally the amount of Advertising will improve or even decrease Consumers Decision. For Sales Promotion (X2) the tvalue = 9.413 with the same , ttable = 1,984 which tvalue > ttable = 9.413 > 1,984. Therefore, Ho is rejected and Ha is accepted which means Sales Promotion is significantly influence Consumers Decision. The result showed that in general the amount of Sales Promotion would improve or decrease individual Consumers Decision. For Events (X3) the tvalue = 5.207 with the same , ttable = 1.984 which tvalue > ttable = 5.207 > 1.984. Therefore, Ho is rejected and Ha is accepted which means Events significantly influence Consumers Decision. The result showed that in general the amount of Events would improve or decrease individual Consumers Decision. For Public Relation (X4) the tvalue = 4.855 with the same , ttable = 1,984 which tvalue > ttable = 4.855 > 1,984. Therefore, Ho is rejected and Ha is accepted which means Public Relation significantly influence Consumers Decision. The result showed that in general the amount of Public Relation would improve or decrease individual Consumers Decision. Based on the hypothesis testing by F-test and t-test, the result has proven that there is linear relationship between variables partially and simultaneously.

49

4.2

Discussion From the analysis that has been conducted by using the Multiple Linear Regression Analysis it found that:

Y = -0.037 + 0.159 X1 + 0.378 X2 + 0.244 X3 + 0.232 X4

The result shows that Mass Communication Modes (Advertising, Sales Promotion, Events, and Public Relation) have significant influence toward Consumers Decision. This result is understandable because all of those are the important things in marketing. The result shows that three out of four variables (Sales Promotion, Events, and Public Relation) are very significant influencing the Consumers Decision. They are shown by the levels of significance that are 0.000 each. Based on the hypothesis testing by F-test and T-test, the result has proven that there is linear relationship or have influence between variables partially and simultaneously. The result of this research shows that among four mass communication modes, advertising is not too significant compared to the other four modes. It is because that the way of communication between producers and consumers are changing. In the advertising, consumers are not involved. But, in sales promotion, event, and public relation, consumers are directly get the advantages. Advertising is a communication tool to introduce a product to consumers. This is the most common tool for companies to introduce their products to consumers because it is simple. Forms of advertising are printed media, such as billboard, newspapers or magazine ads, flyers, brochures, etc, and electronic media, such as TV / radio commercials, spams, pop-up advertisements, etc. By advertisements, consumers only get the information without
50

knowing further. Consumers can only read or listen to the message of the information. In order to make consumers interested to watch or read the information, marketers have to attract consumers by making the advertisement enjoyable to watch or read and also memorable. For example, in every advertisement, every telecommunication providers use certain colors to make consumers easy to remember. Telkomsel with red, Indosat with yellow, Esia with green, Fren with blue, etc. This mode influences consumers to decide what they want based on the information of the advertisements. Sales promotion is a way of companies to encourage consumers to purchase their products. The common form of sales promotion is bonus. Telecommunications providers are often give discounts for their products. For example, Telkomsel gives free credit in every credit recharges at least Rp. 20,000 on its latest product, simpatimax. TelkomFlexi gives tariff discount for every phone call during 12 a.m. - 6 a.m. become Rp. 300. Indosat gives the cheapest tariff for internet connection. XL gives free text messaging everyday. These promotions make consumers more attracted to use certain product because the promotions give many benefits to the consumers. Event is program that is held or sponsored by a company to increase the awareness to the consumers. Through events, companies communicate with consumers directly. A company makes an event, consumers attend that event, and then the sales promotion boys or girls explain the advantage of the product directly to the consumers. In the event, consumers can interact with the representatives of the company about the product. The most common example of event is exhibition. Telecommunication providers use this way to communicate directly to the consumers. We usually see this in public places like malls and supermarkets. Events also have non-profit purposes. CSR (Company Social
51

Responsibility) is a form of event that is not purposed for making profits. This is a form of events that the company must do as a payback for society. For example, TelkomFlexi made band festival for high school in order to find some potential band from high school so that their talents will not be hidden. Public relation involves a variety of programs designed to promote companys image. Public relation is the front liner of a company in the market. They are responsible of a companys image. Public relation officers have to mix to the consumers to know what consumers want and then bring it back to the company. Public relation officers are also responsible to build the image of the company.

52

CHAPTER V CONCLUSIONS AND RECOMMENDATIONS

In this chapter, there are some conclusions of the research and recommendations that can be useful.

5.1

Conclusion

The conclusions drawn from this research are as follows: 1. The result based on data processing using Multiple Regression Equation Model, shows that all independent variables have positive and strong relationship with Consumers Decision as the dependent variable. 2. It can be seen that Sales Promotion is the most influencing factors with the coefficient 0.378, means that every additional of 1 unit in Sales Promotion adds as much as 0.378 points to Consumers Decision. It is because the consumers are more attracted by the bonuses and discounts that given by the providers. They tend to choose the providers that give interesting offers in discounts or bonuses. 3. The second most influencing factor is Events with the coefficient 0.244, means that every additional of 1 unit in Events adds as much as 0.244 points to Consumers Decision. It can be explained that peoples tendency to buy the product is high when there is an event in public places like malls and supermarkets.

53

4. The third most influencing factor is Public Relation with the coefficient 0.232, means that every additional of 1 unit in Public Relation adds as much as 0.232 points to Consumers Decision. Public relation in a company is very important to build communication between the company and the customers. As we know that cellular phone is still a complicated thing that sometimes cannot be fixed by the users even for small problem. So, the users tend to call the public relation of the providers to ask some help if they have problem with their service providers. 5. The least influencing factor is Advertising with the coefficient 0.159, means that every additional of 1 unit in Advertising adds as much as 0.159 points to Consumers Decision. Advertising is the most common tool that company use to introduce their products. But, advertising is only one way communication, which is only from company to the consumers, while sometimes consumers need explanation directly from the representatives of the company that advertising cannot do.

54

5.2

Recommendations

Based on the conclusions above, herewith are the recommendations to telecommunication providers. 1. The marketing communication now has shifted to the more modern way, which is integrated marketing communication. This method is more effective to attract consumers than the traditional way of marketing communication. So, for companies, especially growing companies, should use this new way of marketing communication in order to attract more consumers and of course, get profit as much as they can. 2. Telecommunication providers should consider the mass communication modes in order to attract consumers because the modes, which are advertising, sales promotion, events, and public relation have strong relationship to the consumers decision (proved by the significant level that are all 0.000). It means that the mass communication modes (advertising, sales promotion, events, and public relation) have strong contribution in attracting consumers to buy the products. 3. According to the result, Sales Promotion has the highest influence on consumers decision among the other factors, the telecommunication providers have to maintain the discounts and bonuses given without reduce the quality of the service. However, providers have to consider the other factors also in order to attract consumers and get consumers as many as they can.

55

BIBLIOGRAPHY

Burns Alvin C. and Bush, Ronald F. (2006) Marketing Research. New Jersey: Prentice Hall. Cooper, Donald R. and Pamela S. Schindler. (2001) Business Research Methods International Edition. New York: McGraw Hill Irwin. Duncan, Tom. (2002) IMC: Using Advertising & Promotion to Build Brands. New York: McGraw-Hill. Ebert, Ronald, J., Ricky, W, Griffin (2003). Business Essentials fourth edition. Prentice Hall International, Inc, Upper Saddle River, New Jersey. Kotler, Philip. and Armstrong, Gary. (2006) Principles of Marketing. New Jersey: Prentice-Hill Kotler, Philip. (2003) Marketing Management. New Jersey: Prentice-Hill Malhotra, Naresh K. (2002). Basic Marketing Research: Applications to Contemporary Issues. New Jersey: Prentice Hall International, Inc. Nicola J. Bown, 2007, The relevance of judgment and decision making research for marketing: Introduction to the special issue. Satterthwaite, Loretta N. and Haydu, John J. (2002) Consumer Purchasing Habits of Florida Environmental Horticulture Products, University of Florida, Institute of Food and Agricultural Sciences (UF/IFAS). Schiffman, Leon G. and Kanuk, Leslie Lazar. (2006) Consumer Behavior. New Jersey: Pearson Prentice Hall. Sekaran, Uma. (2003) Research Methods for Business: A Skill Building Approach. John Wiley & Sons, Inc. USA. Sulaiman, Wahid. (2004) Analisis Regresi Menggunakan SPSS, 1st Edition, Penerbit Andi. Ticehurst, Gregory W. (2000) Business Research Methods (A Managerial Approach). Australia: Pearson Education Zikmund, William G. (1991), Business Research Methods 3rd edition: The Dryden Press. www.marketingpower.com/live/mg-dictionary-view1862.php http://www.business.com/directory/advertising_and_marketing/market_research/consumer_beha vior/purchasing_habits/weblistings.asp
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http://www.knowthis.com/tutorials/principles-of-marketing/consumer-buying-behavior.htm http://www.empower.com/pages/services_demo.htm http://www.answers.com/marketing?cat=biz-fin http://en.wikipedia.org/wiki/Marketing_mix http://www.answers.com/multiple%20regression www.emeraldinsight.com http://www.researchandmarkets.com/reportinfo.asp?report_id=58402&te&cat_id en.wikipedia.org/simplelinearregression

57

APPENDICES

58

APPENDIX 1 Regression Output

Sales_Promotion Events Public_Relations

3 9 39 7 3 3 7733

55 59 5 5 997

Consumer_D ecision Advertising Sales_Promotion Events Public_Relations Sig ( -tailed) Consumer_Decision Advertising Sales_Promotion Events Public_Relations N Consumer_Decision Advertising Sales_Promotion Events Public_Relations

5 7

373 55

3 3 55

39 35

373 57

3 3

75

57

))' ))' ))' ))' ))' ( )))( )))( )))( )))( )))(' 0( 0( 3 ( 2(

))' ))' ))' ))' ))' )))( )))( ( )))( )))( 0( 0 ( )))(' ( 2(

))' ))' ))' ))' ))' )))( )))( )))( ( )))( 3 ( 2( ( )))(' 10 (

))' ))' ))' ))' ))' )))( )))( )))( )))( ( 2( 1 3( 2( 10 ( )))('

Pearson Correlation

Consumer_Decision

39

))' ))' ))' ))' ))' )))( ( )))( )))( )))( 0( )))(' 0 ( 2( 13 (

&% $ #"!  

Advertisin g

    

Sales_Promo tion Events 7 Public_Relati ons 35 75 57 57

       

        

Consumer_Decision Advertising

 
Mean 39 Std Deviation 999 N

' (

59

Model

Variables Entered Public_Rela tions, Advertising, Events, Sales_Prom otion(a)

a All requested variables entered b Dependent Variable: Consumer_Decision

a Predictors: (Constant), Public_Relations, Advertising, Events, Sales_Promotion b Dependent Variable: Consumer_Decision

A Sum of Squares 39 5 9

A( )

Residual Total

95 99

a Predictors: (Constant), Public_Relations, Advertising, Events, Sales_Promotion b Dependent Variable: Consumer_Decision

w xsw t

xs xw s

x vvs vv uu s tt us

Regression

xxxs s

Model

df

Mean Square 9 3 55

F 7

Sig

(a)

dc hbd

hhhb

deeb

r q i p

eb

deeb

939(a)

77

df

df

95

Mod el

R Square

e hbe c

c g f db

Adjuste dR Square

Std Error of the Estimate

R Square Chang e

a ` YXXW U TSR V

8 E@IHG @F E@6 @DCB A@98 576 54

/ Variables Removed

( )

Method

Q Q

P c t

Enter

y( )

Change Statistics F Chang e 7 9

Sig F Change

DurbinWatson

60

Model Correlations Public_Relations Advertising Events Sales_Promotion Public_Relations Advertising Events Sales_Promotion a Dependent Variable: Consumer_Decision

- 3 - 5 -

3 5

Covariances

3 -3 5 E5 5

5 35E-

-3 5 E5 35E-

( )

Variance Proportions Model Dimension Eigenvalue 93 Condition Index (Constant) Advertising Sales_Promot ion Events Public_Relati ons

3 359 77

7 9 7

5 7 9 9

7 9 5

a Dependent Variable: Consumer_Decision

( ) Std Deviation N

Residual Std Predicted Value Std Residual

5 5 -5 5 99 - 3 3 a Dependent Variable: Consumer_Decision

Predicted Value

39

Minimum

Maximum

Mean

93 9

61

rp rp n p on p rrp

tn p n tp n rp rrp rrp

rp rp qp np rr p

g lmd ile kgdj idh gfed

qqp np rp rp rrp

y y
Public_Relation s

( ) Sales_Promoti on - 5 5 - 3

Advertising - 3

Events -

sp rrp rp n sp rrp

{ wx ~wx ~{~} w| {z yx wvu

r pqs oqptn tn p n pn rrrpn

rrp on rp qn rp tsrp q po

s n

5 5

APPENDIX 2 Charts Output

62

Normal P-P Plot of Regression Standardized Residual

Dependent Variable: Consumer_Decision

1.0

0.8

Expected Cum Prob

0.6

0.4

0.2

0.0 0.0 0.2 0.4 0.6 0.8 1.0

Observed Cum Prob

63

64