factor analysis on consumer behavior and decision...

FACTOR ANALYSIS ON CONSUMER BEHAVIOR

AND DECISION TO BUY SAMPOERNA MILD

CIGARETTES PRODUCT

Submitted to Faculty of Economic and Business as partial requirement to achieve Degree of

Economic (SE)

By:

Rio Trisasmita 5010081100001

MANAGEMENT INTERNATIONAL CLASS PROGRAM DEPARTMENT

FACULTY OF ECONOMICS AND BUSINESS

STATE ISLAMIC UNIVERSITY SYARIF HIDAYATULLAH

JAKARTA

2010

DECLARATION SHEET

The undersigned here:

Name : Rio Trisasmita

NIM : 5010081100001

Faculty : Economic

Major : Management

Thesis Title : Factor Analysis on Consumer Behavior and Decision to Buy Sampoerna

Mild Cigarettes Product

Hereby, I declare that the results of Thesis writing that I have made is a result of my own

works and true authenticity. If in my writing thesis is the result of plagiarism, or plagiarism of

other people's work, then I am ready to accept the sanctions under disciplinary rules.

Thus, I make this statement in a conscious state and not forced.

The Writer

Rio Trisasmita

Today is Friday, September 3rd, 2010 A Comprehensive Examination has been conducted on student:

1. Name : Rio Trisasmita

2. Student Number : 5010081100001

3. Department : Management

4. Thesis Title : Factor Analysis on Consumer Behavior and Decision to

Buy Sampoerna Mild Cigarettes Product

After careful observation and attention to appearance and capabilities relevant for the comprehensive exam process, it was decided that the above student passed and given the opportunity to continue to thesis as one of requirements to obtain a Bachelor of Economics in the Faculty of Economics and Business Syarif Hidayatullah State Islamic University Jakarta.

Jakarta, September 3rd, 2010

Board of Comprehensive Exam

Prof. Dr. Ahmad Rodoni, MM Chairman

DR. Ahmad Dumyati Bashori MA Secretary

Herni Ali HT, SE., MM Examiner Expert

CERTIFICATION OF THESIS EXAM SHEET

Today is Tuesday, December 14th, 2010 A Comprehensive Examination has been conducted on student:

1. Name : Rio Trisasmita

2. Student Number : 5010081100001

3. Department : Management

4. Thesis Title : Factor Analysis on Consumer Behavior and Decision to

Buy Sampoerna Mild Cigarettes Product

After careful observation and attention to appearance and capabilities relevant for the comprehensive exam process, it was decided that the above student passed and given the opportunity to continue to thesis as one of requirements to obtain a Bachelor of Economics in the Faculty of Economics and Business Syarif Hidayatullah State Islamic University Jakarta.

Jakarta, December 14th 2010

Prof. Dr. H. Ahmad Rodoni (______________________)

19690203200112.1.003 Examiner I

M. Arief Mufraini, Lc, M.si (______________________)

19770122200312.1.000 Examiner II

Prof. Dr. H. Abdul Hamid, MS (______________________)

19570617198503.1.000 Dean

Prof. Dr. H. Ahmad Rodoni (______________________)

19690203200112.1.003 Chairman

DR. Ahmad Dumyati Bashori MA (______________________)

19700106200312.1.001 Secretary

Prof. Dr. H. Abdul Hamid, MS (______________________)

19570617198503.1.000 Expert Examiner

Curriculum Vitae

Personal details

• Name Rio Trisasmita • Sex Male

• Place, Date of Birth Palembang, December 21st 1988 • Marital Status Single

• Health Perfect • Religion Moslem • Address Jl. Raden Saleh IV Blok C no.4 RT04/RW05 Sukmajaya Depok

16412 • Mobile +62857 1024 4090

• Phone +6221 770 8495

• Email [email protected] Basic Education

• 2003 – 2006 SMUN 2 Cibinong Kabupaten Bogor, Indonesia

• 2006 – 2009 International Business Management student in College of Business UUM, Malaysia

• 2009 – 2011 Thesis course (topic : Factor Analysis on Consumer Behavior and Decision to Buy Sampoerna Mild Cigarettes Product) in business management UIN Syarif Hidayatullah Jakarta, Indonesia

Organizational experience

• 2003 – 2006 Member of OSIS in SMUN 2 Cibinong, Kab. Bogor • 2006 – 2009 Member of Indonesian students in UUM - Malaysia (PPI-

UUM), Member of International affair in UUM – Malaysia Qualifications

• Computing & internet (Ms. Word, Ms. Excel, Ms. Power point, browsing jurnal & article, and etc)

• Language with Active fluent English skills

• Business & Management Skills (basic entrepreneurship, management control system, organizational behavior, measuring & control Asset, Human Resources Management, industry relations, International Business and etc)

Abstract

Consumer behavior study is based on consumer buying behavior, with the consumer playing the three distinct roles of user, payer and buyer. A greater importance is also placed on consumer retention, customer relationship management, personalization, customization and one-to-one marketing. Social functions can be categorized into social choice and welfare functions.

The most important characteristic of a social function is identification of the interactive effect of alternatives and creating a logical relation with the ranks. Marketing provides services in order to satisfy customers. With that in mind, the productive system is considered from its beginning at the production level, to the end of the cycle, the consumer.

This paper tries to investigate more detail about the consumer behavior and the process in it and shows the process step-by-step starting from initiative to buy until purchasing decision. Not only that, but it is also give the result to the better point of view for the whole system about the consumer behavior analysis itself.

Foreword

Praise to Allah Almighty that gave me the opportunity to be able to present a thesis,

which will be a reference for the introduction of Marketing Management activities. A hope and

peace is always devoted to Prophet Muhammad and his relatives, his friends, and his people until

the end of time. An appreciation for me to publish this thesis as the embodiment of enriching and

also contributing the treasury for the development of consumer behavior analysis activities in the

country in particular and the Marketing Management world in general.

The economy starts rising up since human beings live in societies and exchange different

kind of goods in order to maintain their daily life. This economy has known several steps from

the creation of barter to what is known today, with financial and international markets.

In our modern and actual societies, this economy is surrounding every single citizen.

They grow up with it, they work into it and thanks to that they are able to buy what they need

and what they want. A lot of different companies of several sizes, national or international

propose and sell items that is needed to survive (food, clothes and so on) or wishes according to

people’s tastes (holidays at the beach, video games, etc). Every single day, consumers are

tending to buy those goods or services. The consumer behavior is affected by a lot of different

factors. The aim of companies, whatever their products or services are, is to sell as many items as

they can and in order to do so they will try to affect their actual and potential consumers to make

them want to buy what they produce. In our actual environment companies tend to

internationalize themselves a lot to earn more power, and the impact they wish to create on

consumption might become more difficult because of the different cultures earn by each different

geographic region.

In this work, the consumer behavior will be at the heart of the study. This analysis will

try to point out what kind of different factors can affect their final purchase decisions.

TABLE OF CONTENTS

VALIDITY PAGE …………………………………………...

CURRICULUM VITAE …………………………………………...

ABSTRACT ………………………………………………………………

FOREWORD ……………………………………………………

TABLE OF CONTENT…………………………………………………..

TABLE OF FIGURE …………………………………………………..

TABLE OF PICTURE …………………………………………………..

CHAPTER I INTRODUCTION………………………………………. 1

A. Background Research ……………………………………. 1

B. Problem Formulation ………………………………………….. 3

C. Research Objectives ………………………………………….. 3

D. Research Utility ………………………………………….. 3

CHAPTER II BASIC THEORY ………………………………………… 4

A. Consumer Behavior Description……………………………….. 4

B. Factors that Influence Consumer Behavior…………………… 6

C. Types of Consumer Behaviors………………………………… 13

D. Stages in the buyer decision process…………………………….. 14

E. Decision making in purchasing ……….…….……………… 16

F. Result of Previous Studies …………. …..…………………. 17

G. Theoretical Framework …….………………………………… 18

H. Hypothesis ………………………………………………….. 19

CHAPTER III RESEARCH METHODOLOGY………………………. 21

A. Identification and definition of conceptual variables …... 21

B. Operational definitions of variables …………………….. 22

C. Research Scope ……..………………………..…………. 24

D. Research Sites ….……………………………………….. 24

E. Population and Sampling Technique ……………………… 24

F. Data Resources ………………………………………….. 25

G. Data Collecting Technique ……..……………………….. 26

H. Data Analysis Technique …………………………..….. 26

CHAPTER IV ANALYSIS AND DISCUSSION……………………… 30

A. Research object …………….……………………………. 32

B. Research Analysis results …………………………………. 41

CHAPTER V CONCLUSSION AND SUGGESTION…………………. 45

A. Conclusion ………………………………………………….. 45

B. Suggestion …………………………………………………….. 47

BIBLIOGRAFY

TABLE OF FIGURES

Table 2.1 Model of Consumer Behavior …………………. 6

Table 2.2 Internal factors that influence consumer behavior …………………. 8

Table 4.1 Respondents based on time of consumption …………………. 34

Table 4.2 Respondents based on age …………………. 35

Table 4.3 Respondents based on gender …………………. 35

Table 4.4 Respondents based on status of residence …………………. 36

Table 4.5 Validity and Reliability Test Instruments …………………. 37

Table 4.6 Respondents answer on price variation (X1) …………………. 38

Table 4.7 Variations in respondents' answers to product …………………. 40

Table 4.8 The frequency distribution of trust / attitude …………………. 42

Table 4.9 Frequency distribution of buying decision variable …………………. 43

Table 4.10 Summary of regression analysis result …………………. 45

TABLE OF PICTURES

Picture 2.1 Theoretical Framework

1

CHAPTER I

INTRODUCTION

A. Background Research

In life, humans can’t escape from their various levels of needs, like physiological

needs, social needs, needs to have, the need for self-esteem and the need to actualize

themselves. From some of these needs, physiological needs cover the need to eat, drink,

physical protection, breathing, and sex. Which are the most basic needs.

Humans are always driven by their basic needs and environmental influences in

which they lived. The needs nature is instinctive, for example such as a person who feels

hungry and thirsty do not need to be notified that they needed food and drink but

instinctively they will find the goods that can satisfy them or their needs. Whereas in

fulfilling its satisfaction, the consumer doesn’t consume only staple goods but also likes to

consume other secondary goods such as cigarette for smokers in particular, because smoking

is almost becoming a staple at this time.

Nowadays, there are many cigarette products that appear in the market and show

their own unique advantages, it is also shows that there are many alternative options

available for the consumers. If we see it through the manufacturers point of view, many

available alternatives also means or can be resulted in a tight competition for producers.

Therefore, companies should be more oriented to consumers and consumer desires is one of

the requirements for the company's presence in the competition, if they want to be

recognized.

2

Mild Cigarette is one of the popular cigarette products for consumer because of

superior taste, typical attractive packaging, and their packaging varies in mild 12 and mild

16. The low levels of nicotine and tar of 15 mg tar and 1 mg of nicotine is lower than other

cigarettes, and also because it produces some variations form of cigarettes like Sampoerna

Kretek or Sampoerna filter with their own superior taste characteristics. Sampoerna Mild

cigarette products made in this variety forms adapted to the tastes of consumers that also

varied, which is always changing along with the changes in the environment, or in

accordance with consumer behavior itself.

Consumer behavior as an act that directly involved in obtaining, consuming and

using products and services, including the decision processes that precede and follow the

action of purchase. In the process to deciding what to buy, consumers need a consideration

of the characteristics of the product that they are going to purchase. An understanding of the

consumer can be done by conducting research in order to measure and assess the attitudes

and behavior desire. It will be benefits for consumers if the manufacturer were able to

maintain or even increase the variety taste of tobacco from their Sampoerna Mild product.

This thing would make consumers choose whichever suits their cigarette desire or

consumers tastes at the time. Based on the statement above, the topics of this research is:

“CONSUMER BEHAVIOR ANALYSIS TOWARDS THE DECISION TO BUY

SAMPOERNA MILD CIGARETTES PRODUCT.”

3

B. Problem Formulation

Based on the background described above, the formulations of the problems are:

1. What factors that influence consumer towards the decision to purchase Sampoerna Mild

cigarettes?

2. What is the most dominant factor to be used as the basis of purchasing decisions of

consumers against Sampoerna Mild products?

C. Research Objectives

The purposes of this study are:

1. To know the factors that influence consumers in deciding to purchase Sampoerna Mild

tobacco products.

2. To find the most dominant factor this is used as the basis of consumer decision in buying

Sampoerna Mild tobacco products.

D. Research Utility

Given by this research, it is expected to provide inputs, especially for the following

parties:

1. For companies

As an input for improving the quality of Sampoerna Mild cigarettes by knowing

the consumer behavior towards the tobacco products offered.

2. For other parties

The result is expected to be a reference material, particularly for those who

interested in issues concerning consumer behavior.

3. For Researchers

To apply the knowledge gained in college, and to increase knowledge and

experience in the real world of work.

4

CHAPTER II

BASIC THEORY

A. Consumer Behavior Description

Consumer needs and desires related to consumer attitudes and behavior. Consumer

attitudes and behavior have a significant role in determining the right marketing strategy.

Changes in people's income as a consumer, frequency of purchase, the advancement of

education, ease of transportation and communication, social relationships that increasingly

widespread leads to changes in consumer behavior and tastes. The term consumer behavior

is often used to describe the behavior of people who buy and use goods and services.

Many experts provide understanding of consumer behavior, one of them is by

Amirullah (2003), “factors that influence consumer purchase decisions is simply divided

into two parts, namely a) the internal forces, such as: experience, learning, personality and

self-concept, motivation and involvement, attitudes and desires, b) external force , such as:

cultural factors, social, environmental, economic, and marketing mix.”

According to Henry Assael cited by Sutisna (2002) Factors explaining the choice of

individual consumers to purchase a product is influenced by the idea of variables (needs,

motivations, attitudes, perceptions) and consumer characteristics (demographics, lifestyle,

personality).

Based on the opinions above, it can be concluded that the behavior of consumers are

the activities undertaken by individuals, groups or organizations to obtain use of goods and

services, including decision-making contained within.

5

Consumer behavior is a very complex activity, because there are many variables that

the influence and interaction must be realized. When the understanding of consumer

behavior can be done then the company will be able to achieve much greater profits than its

competitors, because by understanding their consumer behavior, companies can give better

satisfaction to the consumers. To that end, the marketer should at least understand the

consumer behavior model below:

Table 2.1 Model of Consumer Behavior

Market

ing

impuls

e

Other

impulse

Consumer

Characteristics

Consumer Decision

Process

Buying Desision

Produc

t

Price

Distrib

ution

Promot

ion

Economy

Technology

Politic

Culture

Culture

Social

Personality

Psychological

Problem

introductory

Information seeking

Alternative

evaluation

Buying decision

Consumer behavior

Product option

Brand optopn

Supplier option

Purchasing

schedule

Purchase amount

Source: Kotler and Armstrong (1992:159)

Based on the Figure 1 above, on the left side of the figure shows that marketing

impulse consists of product, price, distribution, and promotion. Another impulse consists of

economy, technology, politic, and culture. All of these impulse came through consumer’s

black box (characteristic and consumer’s decision process) and resulted as series of

consumer responses that can be seen on the right side of the Figure above: product option,

brand option, supplier option, purchasing schedule and purchase amount.

6

B. Factors that Influence Consumer Behavior

1. Internal Factor

Consumer behavior significantly influence by culture, social, characteristic, and

psychological factors. In order to know the detail from these factors, we can see the

figure below:

Table 2.2 Internal factors that influence consumer behavior

Culture

Social

Characteristic

Culture Reference

group

Age and life cycle

stage

Psychologica

l

Sub-

culture

Family

Job

Economic condition

Life Style

Motivation

Perception

Knowledge

Consumers

Role

&

Status

Personality

&

Self-concept

Belief

Social

Class

7

Source: Kotler (1997:153)

a) Culture factors

According to Kotler (1997:153), Cultures is a symbol and complex fact that

created by human, descended generation to generation as a determiner and human’s

behavior regulator in their existing community/environment. Culture factors have the

widest and deepest influence towards consumer behavior, because culture is the desire

determination factor and the most basis thing from person behavior. Cultural factors

consist of:

1) Culture

Culture is the most fundamental determinant of desires and behavior; culture

refers to the values, ideas, symbols that have meaning to communicate, development

and evaluation as members of the public.

2) Sub-Culture

Each subculture consists of small subcultures that provide more specific

identification and socialization of its members. Subculture includes: nationality,

religion, racial groups, and geographic regions.

3) Social class

Translated by Teguh according Kotler and Ronny A. Rusli (1997: 155):

"The social class is the part that are relatively homogeneous and fixed in a society that

is organized in a hierarchical structure and its members have interests and behavior of

values - similar behavior." "Social class is sometimes in the form of a caste system

where members of various castes brought to certain roles and not be able to change

8

their membership to a caste." Social class is measured as a combination of jobs,

income, education, wealth, and other variables.

b) Social factors

Teguh according Kotler and Roni A. Rusli (1997: 157) translated: consumer

behavior is also influenced by social factors, such as:

1) Reference group

Consisting of a reference group all groups that have a direct or indirect effect

resulting from the interaction of formal and informal establishment or a person's

behavior.

2) Family

The orientation of the family indicates the involvement of spouses and other

family members in decision-making process.

3) The Role and Status

A person participates in the various groups in his life: family, club or

organization. The position of people in each group can be defined in terms of roles

and status.

c) Personal Factors

According to Kotler and Armstrong translated by Bakowatun (1992:161) states

that "Personality as a psychological characteristic that is different from someone causes

relatively consistent and enduring responses to the environment."

Behavior of people into buying something is also influenced by personality

factors of the consumer concerned. As those factors are:

9

1) The age and stage of the lifecycle

Is the level of the stages of life that passes the family when grow at all times.

2) Job

The work that chose by someone will affect their patterns of consumption, so

the company can perform specialization in offering their products.

3) Consumer economic conditions

In making the purchase, consumer can’t be separated from their own economic

conditions, where economic conditions are sufficient to demonstrate a certain ability

consumer goods and services.

4) Life Style

Lifestyle reflects something more social class-oriented and lifestyle also

represents the people who generally interact with their environment.

5) Personality and Self Concept

Personality is unique psychological characteristics that cause a response from

someone who is relatively consistent and stay on their own environment. Personality is

usually described with congenital traits such as confidence, diversity of respect, social

conditions, power, adaptability and emotional stability.

d) Psychological factors

According to Kotler translated by Teguh and Roni A. Rusli (1997:161) is: "The

choice of purchase of a person affected by the five major psychological factors, such as:

Motivations, perceptions, knowledge, beliefs and attitudes"

10

From those five factors stated above, it can be explained as follow:

1) Motivation

A need will be a motif when it has reached enough level of intensity. The

motive or impulse is the need for sufficient lead one to act.

2) Perception

According to Kotler that translated by Wasana (1991: 248), perception is

defined as "an individual process to select, organize and interpret information inputs to

create a meaningful picture of the world”. Perception bridges someone to prove the

reality of human impulse received by the five senses. Responses on the perception of

each person are different due to the impulsion of admission selection process.

3) Knowledge

According to Kotler et.al translated by Tjiptono (1999:242) argues that:

"Knowledge describes the change in the behavior of certain individuals which is come

from experience." The theory of knowledge taught traders that in order to create

demand for products and correlates with strong drive, it is important to use the

instructions that motivates and provide positive empowerment.

4) Beliefs and attitudes

According to Kotler and Armstrong are translated by Bakowatun (1995:246)

"Belief is a descriptive thought about something that a person has, while attitudes are

evaluations, feelings and someone who is relatively consistent towards an object or

idea." Through doing and learning, will form a belief. This belief will affect a person's

behavior. Trust also will shape the image of the product or brand. If there is a false

belief and held on the purchase, the marketer should be campaigning to correct the

11

wrong beliefs and lest creates a bad impression of the brand and the product itself.

One's attitude in the face of a product can be divided into two: a positive attitude and

negative attitude. A positive attitude means happy with the product, whereas a

negative attitude doesn’t like the product concerned.

2. External Factors

a) Price

According to Kotler and Armstrong that translated by Nurmawan (1997: 339)

"Price is the amount of value to consumers in exchange for the benefits of owning or

using a product or service."

One of the factors that affect consumer-buying interest is the price. The price is

the determining factor in market demand for products or services because it can affect

its market share. For manufacturers, the price should be able to provide results by

creating revenue and net income.

According to Tjiptono (1997: 152):

Price has two main functions in the decision-making of the buyers of the

assignment of function and role information.

1) The role of the allocation of the price, which is the function of prices to help the

buyer to decide how to get the greatest benefit, is expected on the basis of their

purchasing power. Thus, prices can help buyers to decide how to allocate the

purchasing power in various types of goods and services. Buyer compares the

prices of the available alternatives variety, and then decides the allocation of funds

as their desire.

12

2) The role of pricing information, which is a function of price in educating

consumers about the factors such as quality products. This is particularly useful

where customers are facing difficulties to assess a product or its benefits in an

objective manner. Perception that often occurs is: “High price reflects high

quality”.

b) Product

According to Kotler and Armstrong which is translated by Bakowatun

(1992:347) "Product is something that can be offered to the market to get attention,

which will be purchased, used or consumed in order to satisfy the desire or need."

According to Kotler and Armstrong , translatied by Bakowatun (1992: 350):

the product can be divided into three groups according to their form, namely:

i. Perishable goods

Perishable goods are usually consumed in one or more times only. Example:

food and beverage.

ii. Durable goods

Durable goods are used for long periods of time and usually persist until

several times of use, e.g. consumer goods: clothes, household items.

iii. Services of goods or services

Service goods or services are activities, benefits or satisfaction offered for sale.

Examples: the medical examination and barbershop.

13

C. Types of Consumer Behaviors

The decision of consumers varies greatly depending on the type of purchase

decision. In accordance with Kotler’s opinion that was translate by Wasana (1991: 253);

there are four types of consumer behaviors depending on the degree of participation of the

buyer on the purchase and the degree of difference between a varieties of brands. The four

types are:

1. Complex behavior of consumer

Consumers will have a complex behavior when they are becoming more involved

in the purchase and realize the important difference between several brands of existing

products. Consumers will be involved in the activities of purchase, if the purchased

products are expensive and very memorable. Sellers have to develop strategies to help the

buyer in the study of characteristics rather than groups of products, the relative level of

importance and the position of the brand that stands out among the features that are most

important.

2. Consumer behavior that reduces the incompatibility

Sometimes, consumers are very involved in the purchase of something, but saw

no more than slight differences in the mark. The implications of such a situation for

marketers is that prices and good location is important to influence the choice of brands

and marketers should help consumers feel "comfortable" with the decision before making

a purchase.

14

3. Consumer behavior based on habit

Consumers are less involved in purchasing the product. They come, choose and

buy direct. This is because of their habit. Consumers in these cases were not by beliefs,

attitudes or a series of unusual behavior. Marketers take advantage of promotional

products and sales price as an incentive for buyers who want to try to buy the product.

4. Consumer behavior that seek diversity

In some buying situations, consumer involvement is low, but it is characterized by

significant brand differences. Consumers often do brands change. This brand substitution

occurs solely to obtain diversity not because of dissatisfaction.

D. Stages in the buyer decision process

Consumer behavior will determine the decision making process in purchasing them.

Consumers in every purchase do not always do this process, but the process is only done in

certain situations. For example, on the first purchase of goods that has a high price. These

stages according to Engel that translated by Budiyanto (1994:31) consists of: ".

Introduction to the problem, information seeking, alternative evaluation, purchase decision

and purchase behavior management".

They can be explained as follows:

1. Introduction to the problem

This stage occurs when consumers realize the difference between the existing

situation with the desired or expected situation which is the emergence of self-impulsion

15

in the consumer, need to be driven by impulse from outside or from within the consumer-

external and internal factors.

2. Information seeking

A consumer who began their interest may be intrigued to find much more

information, if there is a consumer impulse to purchase the product. Otherwise, that

consumer needs precipitates in their memory and consumer may not attempt to obtain

more information.

3. Alternative evaluation

At this stage, consumers face several alternatives for the valuation of trademarks.

In this electoral process, there are some basics to help clarify the process of evaluating

consumer, among other properties of the product, confidence in a brand, utility function,

the consumer in the selection of alternatives assessment procedures.

4. Purchasing decision

After the above steps done, then it is time for the consumer to determine the

attitudes in the decision whether to buy or not. Considered that the decision made is

buying, the buyer will see a series of decisions on product, brand, seller, quantity, time of

purchase and payment method.

5. Purchase behavior management

After purchasing the product, consumers will experience some degree of

satisfaction or dissatisfaction. Companies should study this situation in order to evaluate

their products and services that have been sold.

16

E. Decision making in purchasing

The decision to buy or not a product, especially that have the impact for many

people, will need more people to get involved in the decision making process.

Tjiptono opinion (1995:23) describes some possible role played by people in their

buying decision:

1. Initiator

Beneficiary of the initiative is the person who suggested for the first time or

thought about buying a product or service in particular.

2. Influencer

A person who give the influences, a person that their views or suggestions often

taken into account in making a final decision.

3. Decider

Decision maker is someone who determines most or all purchasing decisions, to

buy or not, how to buy and where to buy.

4. Buyer

Buyer is someone who did the actual purchase.

5. User

The user is someone or some people who enjoy or use of products or services.

By knowing and understanding this decision-making process, will increase

consumer choice in choosing a tobacco product. One thing to remember is that any

decision taken there is always a risk that will happen and somehow the decision will be

accurate when considering the external and internal factors.

17

F. Result of Previous Studies

Research conducted on families residing in the Tegal Parang, Mampang.

Determinations of the number of respondents from 70 questionnaires distributed, only 60

families bought this product Sampoerna Mild cigarette, so the 60 respondents used as a

sample. In this study, there are 4 (four) variables, the product variable (X1), price (X2),

family (X3) as well as attitudes and beliefs (X4). From the calculation, the value of r =

0.7203 means that together have a strong relationship and trade-offs between product, price,

family, attitudes and beliefs with the decision to buy Sampoerna Mild cigarettes. While the

coefficient of determination (R ²) of 0.5189 means that the change in frequency / frequencies

to buy 51.89% are caused by changes in product, price, family, attitudes and beliefs. While

the rest equal to 48.11% influenced by other variables not included in this study.

18

G. Theoretical Framework

The theoretical framework in this research can be show on the picture 2.1:

Picture 2.1 Theoretical Framework

Data

Material for questioner

Questioners

Conclusion

Finish

Classic Assumption test

Regression Test

Valdity Test Reliability Test

PRICE, PRODUCT, BELIEFES AND ATTITUDES, DECISION TO BUY,

Uji F dan Uji t

Manual Input

19

H. Hypothesis

1. PRICE

H0 : b1 = 0, there is no significant influence between price toward decision to

buy Sampoerna mild.

H1 : b1 ≠ 0, there is significant influence between price toward decision to buy

Sampoerna mild..

2. PRODUCT

H0 : b1 = 0, there is no significant influence between product toward decision

to buy Sampoerna mild..

H1 : b1 ≠ 0, there is significant influence between product toward decision to

buy Sampoerna mild..

3. BELIEFES AND ATTITUDES

H0 : b1 = 0, there is no significant influence between beliefs and attitudes

toward decision to buy Sampoerna mild..

H1 : b1 ≠ 0, there is significant influence between beliefs and attitudes toward

decision to buy Sampoerna mild.

4. Simultan

H0 : b1: b2: b3: b4: = 0, there is no significant influence between price,

product, beliefs and attitudes toward decision to buy

Sampoerna mild.

20

H1 : b1 :b2: b3: b4: ≠ 0, there is significant influence between price, product,

beliefs and attitudes toward decision to buy

Sampoerna mild.

The decision is:

� If Sig / Probabilities > 0,05 mean Ho received.

� If Sig / Probabilities < 0,05 mean Ho rejected

Or

� If hitumgt < tabelt mean Ho received

� If hitumgt > tabelt mean Ho rejected

21

CHAPTER III

RESEARCH METHODOLOGY

A. Identification and definition of conceptual variables

1. Variable Identification

In this study, there are only two variables. They are independent variables and the

dependent variable.

a. Independent variable (X): price (X1), product (X2), beliefs and attitudes (X3)

b. Dependent variable (Y): the buying decision

2. Definition of Conceptual Variable

a. X1 = Price

According to Kotler and Armstrong , which was translated by Nurmawan

(1997: 339) price is “Number value to consumers in exchange to get the benefits of

owning or using a product or service”.

b. X2 = Product

Based on the opinion of Kotler and Armstrong , which was translated by

Bakowatun (1992: 347) product is "something that can be offered to the market to

draw attention to be purchased, used or consumed to satisfy a desire or need."

c. X3 = Beliefs and Attitudes

22

According to Kotler and Armstrong , translated by Bakowatun (1995:246),

trust or belief is "a descriptive thought about something while attitudes are

evaluations, feelings and someone who is relatively consistent trend towards an object

or idea."

d. Y = purchase decisions as dependent variable

Translated by Bakowatun according to Kotler (1992:202) "The decision to

buy is considered as an action taken by consumers after an evaluation of all available

alternatives that resulted the desire to buy".

B. Operational definitions of variables

1. Independent variable

The independent variable (X) in this study is the factors that influence the

behavior of consumers to purchase products Sampoerna mild cigarettes, namely:

X1 = Price, with the indicator:

� Compliance with quality and satisfaction rates

X2 = Product, with the indicator:

� Taste

� Various tastes

� Size and Packaging

X3 = Belief / trust and attitude, with the indicator:

� Impression or image of the consumers towards product

To simplify data interpretation, this study used a Likert scale rating (Purwadi,

2000:108) with the five-level rating scale consisting of strongly agree, agree, quite agree,

23

disagree and strongly disagree. Used in this way because it is easily to understand and

value the diversity of his trademark, allowing respondents to express their opinions about

the decision variable product related to the purchase of Sampoerna Mild cigarettes that

actually closer to reality. Fifth assessment will be given weight values as follows:

a. Strongly agree was scored 5

b. Agree was scored 4

c. Quite agree was scored 3

d. Disagree was scored 2

e. Strongly disagree was scored 1

2. Dependent Variable

Dependent variable (Y) in this study was the decision to buy Sampoerna Mild

cigarettes. The decision to buy is the actions taken by individuals, groups or

organizations where their attempt is to meet the needs of goods and services and followed

by purchasing power and customer satisfaction. The decision to buy Sampoerna mild

cigarettes indicators is: to buy Sampoerna Mild tobacco products, within a month.

C. Research Scope

24

For a more targeted research and facilitate further study, this research is limited to

the field of marketing management, in particular matters related to consumer behavior

regarding the factors that influence consumer behavior in deciding to buy Sampoerna Mild

cigarettes.

D. Research Sites

The study was conducted on the campus environment of the Faculty of Law,

Pancasila University, Lenteng Agung - Depok. The author’s considerations in determining

the location of the study are:

1. A large number of students of the Faculty of Law at the Pancasila University Depok who

purchase Sampoerna Mild tobacco products.

2. The big difference of motives between the purchases of every student's in buying

Sampoerna Mild tobacco products.

E. Population and Sampling Technique

The population in this study were students of the Faculty of Law Pancasila

University Depok, but because the number of populations present in large enough quantities,

the authors did not examine all individuals in the population, but only do research on some

individuals who represent them, using a quota sampling technique. This sampling technique

is not based on strata / region, but based on the amount that already specified (predetermined

amount). To obtain more accurate results, this study will take 50 respondents. This is

because consumers will be able to provide assessments and the reasons why they buy

Sampoerna Mild cigarettes.

25

According to Arikunto (1993:114): In collecting data, researcher will contact the

subjects who meet the requirements of the characteristics of the population, regardless of

where the origin of the subject (as long as it is still in the population). Typically, they are

contacting the subject that easy to find, so that data collection is easy. The important note is

the fulfillment of the amount (quota) has been determined.

With the consideration due to the availability of time, limited money and effort, the

author was forced to limit the number of research subjects.

According to Sutrisno Hadi and Seno Pamardiyanto (1994:276) a sample

technically can be seen as a large sample where N ≥ 30, which means that samples have

been eligible normality in a study.

F. Data Resources

1. Primary data

Primary data is a data collected and processed by the author that obtained directly

from respondents. Primary data in this study include: data description of the respondents,

the answers listed in the questionnaire, related to: prices, products, beliefs/trust and

attitudes.

2. Secondary data

Secondary data is data obtained indirectly or from other parties associated with

the object of research to support the primary data. Secondary data used by the author

usually comes from: television, newspapers, books in the library.

G. Data Collecting Technique

26

To obtain accurate and relevant data, a good data collection technique is needed as

well. Techniques of data collection used were:

1. Interview

This method is carried out by direct interviews with the parties concerned, namely

the students of the Faculty of Law Pancasila University Depok that were selected as

respondents.

2. Observation

Observation is a technique of collecting data by direct observation of the object of

research.

3. Questionnaire

Questionnaire method is done by distributing questionnaires to the respondents to

determine the response of respondents to the questions posed by the author.

H. Data Analysis Technique

1. Qualitative data analysis

An analysis technique by provides a description, images, illustration and

interpretations in order to obtain a conclusion.

2. Quantitative Data Analysis

Analysis technique using a number that consists of:

a. Validity and reliability test

The validity of the instrument shows the extent of the measuring device

(instrument) capable of measuring the variables measured. Testing the validity of

using the product moment correlation technique by correlating the score of each item

27

with total score. Instruments declared valid by comparing the value of product moment

correlation (r count) with r-value table for the level α = 5%, i.e. if the value of r

count> r table.

Reliability indicates the extent to which reliable gauge or show how far gauges

consistency. Reliability test use the Alpha Crobach method. Instruments declared

reliable if the price of Alpha coefficient reaches at least 0.6 (Nurgiyantoro ,

1999:312).

b. Multiple linear regression analysis

To determine the extent to which the price variable (X1), product (X2) as well

as beliefs and attitudes (X3) influence the decision to buy (Y) used multiple linear

regression analysis.

According Nurgiyantoro (2000:276):

Formula:

Y = a + b1X1 + b2X2 + b3X3............................................(1)

Description:

Y = buying decision

a = constants

b1,b2,b3 = regression coefficient

X1 = price variable

X2 = product variable

X3 = trust/belief and attitude variable

c. F – test

To test the hypothesis: the independent variable (X

behavior of consumers in the decision to purchase (Y).

According to

Formula:

F =

Where:

F = moreover, F

R² = determinant coefficient

k = number of variables

n = sample amount

To test the hypothesis with F test, the hypothesis was formulated as follows:

Ho : b1 = b2 = b3 = 0 →

Ho : b1 ≠ b2 ≠ b3 ≠ 0 →

Acceptance and rejection criteria of Ho:

Ho is rejected → if the F

This means that there are influences between variable X

Ho received → if the F

This means there is no influence of variables X

28

To test the hypothesis: the independent variable (X1

f consumers in the decision to purchase (Y).

According to Damodar Gujarati (1998:20):

............................................................(2)

F-count compared with F-tabel

= determinant coefficient

er of variables

= sample amount


→ no significant effect between the independent

variable on the dependent variable.

→ there’s a significant difference between the

independent variable on the dependent variable.

Acceptance and rejection criteria of Ho:

if the F-count> F-table

This means that there are influences between variable X1, X2, X3 with variable Y.

if the F-count <F-table

This means there is no influence of variables X1, X2, X3 with variable Y

1, X2, X3) affects the


no significant effect between the independent

significant difference between the

independent variable on the dependent variable.

with variable Y.

with variable Y

d. T – test

To test the effect of ind

dependent variable (Y) T

According Sumodiningrat

Formula:

t-count = ..........................................................................(3)

Where:

b = regression coefficien

Sb = standard error of regression coefficient

Testing criteria:

Ho : bi = 0 → variable X have no significant effect towards variable Y

Ha : bi ≠ 0 → variable X have significant effect towards variable Y

Ho received if –ttable < t

29

To test the effect of independent variables (X1, X2, X

dependent variable (Y) T - test is used.

Sumodiningrat (199:223):

..........................................................................(3)

regression coefficient

standard error of regression coefficient

variable X have no significant effect towards variable Y

variable X have significant effect towards variable Y

< tcount < ttable and vice versa.

CHAPTER IV

, X3) partially on the

variable X have no significant effect towards variable Y

variable X have significant effect towards variable Y

30

ANANLYSIS AND DISCUSSION

A. Research object

1. Description of Respondent

The sample of respondents in this research are 50 people, here are presented the

characteristics of respondents based on the time of consumption of Sampoerna Mild

tobacco products.

Table 4.1

Respondents based on time of consumption

Period Quantity Percentage

Less than 1 year

Between 1 - 2 years

More than 2 years

3

7

40

6

14

80

Total 50 100

Source: Processed primary data

Based on the above table shows that most of the 40 respondents (80%) had

smoked Sampoerna Mild more than 2 years, 7 respondents (14%) between 1-2 years and

the remaining 3 (6%) of respondents using the product of Sampoerna Mild less than one

year.

Here are the characteristics of respondents by age of existing research sample of

50 respondents.

Table 4.2

31

Respondents based on age

Age Quantity Percentage

Younger than 20 years old

Between 20 – 25 years old

13

37

26

74

Total 50 100


From the above data indicate that the sample of 50 respondents mostly aged 20-25

years old, are 37 respondents (74%) while the remaining 13 respondents (26%) aged

younger than 20 years old. Based on the gender characteristics of the respondents will be

presented in table 3 are as follows:

Table 4.3

Respondents based on gender

Gender Quantity Percentage

Male

Female

46

4

92

8

Total 50 100


From table 3 above, it can be observed that the majority of respondents are male,

which are 46 respondents (92%) and the rest of the 4 respondents (8%) female.

Characteristics of respondents by status of residence can be seen in table 4 below:

Table 4.4

32

Respondents based on status of residence

Residential Status Quantity Percentage

Rent

Private house/parents house/family

40

10

80

20

Total 50 100


From table 4 above, it can be seen that most of respondent’s residential status are

living in house for rent / contract; which are 40 respondents (80%) while the remaining

10 respondents (20%) the status of living are live with family or parents.

2. Validity and Reliability Test Instruments

The validity of the instrument shows the extent of the measuring device

(instrument) capable of measuring the variables measured. Testing the validity of using

the product moment correlation technique by correlating the score of each item with total

score. Instruments declared valid by comparing the value of product moment correlation

(r count) with value of r table for the level α = 5%, i.e. if the value of r count> r table.

Reliability indicates the extent to which the instrument gauges unreliable or

shows how far gauge consistency. Reliability test will be using Alpha Crobach

method. Instruments declared reliable if at least the Alpha coefficient (at least) reached

0.6 (Nurgiyantoro , 1999:312). The result of instrument validity and reliability can be

presented in the following table:

Table 4.5

33

Validity and Reliability Test Instruments Variable Figure Correlation value

(r count)

r table

(α = 5%)

Test Remarks

X1

X1.1

X1.2

X1.3

0,918

0,869

0,913

0,279

r count > r table

Valid

Valid

Valid

Alpha Coefficient= 0,8785 Reliable

X2

X2.1

X2.2

X2.3

X2.4

0,733

0,892

0,899

0,869

0,279 r count > r table Valid

Valid

Valid

Valid


X3

X3.1

X3.2

X3.3

0,844

0,901

0,798

0,279

r count > r table

Valid

Valid

Valid


Y

Y1

Y2

Y3

0,944

0,910

0,865

0,279

r count > r table

Valid

Valid

Valid


Source: Processed primary data (Appendix 3 and 4)

Validity of test results presented above show all the questions have the value r

count > r table that mean scores correlated significantly with total score, in other words

34

items that are used can measure variables so that all the questions otherwise valid.

Reliability test results indicate that the figure used are reliable because the value of

coefficient alpha greater than 0.6.

3. Descriptive variable

Results of questionnaire distributed to the respondents explained that the next

sample could be viewed as a response to price, product and beliefs and attitudes and

purchasing decisions.

a. Price (X1)

Distribution of respondents scoring responses to variable pricing (Attachment

5) is presented in the following table:

Table 4.6 Respondents answer on price variation (X1)

FIGUR

E

SCORE

1 2 3 4 5

f % f % f % f % f %

X1.1

X1.2

X1.3

1

-

6

2

-

12

8

1

15

16

2

30

10

12

20

20

24

40

20

19

9

40

38

18

11

18

-

22

5

-

X1 2 5 8 16 14 28 16 32 10 9

Source: Processed primary data (appendix 5)

35

Where:

X1.1 = the price of Sampoerna Mild cigarette is reasonable

X1.2 = price reflects the quality

X1.3 = satisfaction towards the price

X1 = price

The variation of respondents' answers about Sampoerna Mild Cigarettes with

reasonable price, the result shows that 11 respondents are strongly agreed (22%), 20

respondents (40%) agreed, 10 respondents (20%) stated quite agree, 8 respondents

(16%) states disagree and the remaining 1 respondent (2%) stated strongly disagree if

Sampoerna Mild cigarettes is cheap.

The response of respondents to the price of Sampoerna Mild cigarettes

accordance with the quality mostly results that strongly agree response are more that

18 respondents (36%), 19 respondents (38%) agreed, and 12 respondents (24%)

stated quite agree and the remaining 1 respondent (2 %) declared disagree on the

price of Sampoerna Mild cigarettes in accordance with its quality.

Similarly, the satisfaction of the price offered the company acquired the

majority states agreed: 9 respondents (18%), 20 respondents (40%) stated quite

agree, and 15 respondents (30%) said disagree, the remaining 6 respondents

(12%) states strongly disagree or dissatisfied with the price set by the company.

Overall perception of respondents to the price turns out most of the 30

respondents (60%) of the total respondents to accept the price of Sampoerna Mild

cigarettes.

36

b. Product (X2)

Distribution of respondents scoring responses to variable products (appendix

6) are presented in the following table:

Table 4.7

Variations in respondents' answers to product (X2)

Figure SCORE

1 2 3 4 5

f % f % f % f % f %

X2.1

X2.2

X2.3

X2.4

1

2

5

3

2

4

10

6

6

5

7

7

12

10

14

14

9

7

9

11

18

14

18

22

23

26

14

15

46

52

28

30

11

10

15

14

22

20

30

28

X2 3 6 6 13 9 18 20 39 13 26


Where:

X2.1 = Product quality

X2.2 = Product taste

X2.3 = Variety / taste varies

X2.4 = Interest in size and packaging

X2 = Product

Product in this case is Sampoerna Mild Cigarettes offered to

consumers. Products can be seen from the quality of the product, the taste of the

37

product, variety or a variety of products and interest in the size and packaging. The

variation of the respondent's answer to the quality of the products obtained as the 11

respondents (22%) stated strongly agreed, 23 respondents (46%) agree, 9 respondents

(18%) stated quite agree, 6 respondents (12%) said disagree, and the remaining 1

respondents (2%) stated strongly disagree on the quality of cigarette products

Sampoerna Mild.

The result of variations in the response of respondents about the taste of

cigarettes Sampoerna Mild obtained the highest results of 10 respondents (20%)

stated strongly agree that cigarettes Sampoerna Mild tastes good, 26 respondents

(52%) of all respondents agreed, 7 respondents (14%) said quite agree, 5 respondents

(10%) said disagree, the remaining 2 respondents (4%) stated strongly disagree.

Respondent’s perception about the variety or various tastes that provided by

Sampoerna Mild cigarettes resulted as follows: 15 respondents (30%) state strongly

agree, 14 respondents (28%) state agreed, 9 respondents (18%) state quite agree and 7

respondents (14%) state disagree, while the rest of respondents state strongly

disagree.

The result of respondent’s response about their interest in size and packaging

that made by Sampoerna Mild cigarettes product are: 14 respondents (28%) state

strongly agree, 15 respondents (30%) agreed, 11 respondents (22%) quite agree, 7

respondents (14%) disagree and the rest of 3 respondents (6%) state strongly disagree

if their interest towards Sampoerna Mild cigarettes are based on the size and

packaging of the product.

Overall, the respondent’s perception towards Sampoerna Mild cigarettes

38

product based on the quality of the product, product taste, various tastes and also

interest in size & packaging are 33 respondents (65%). With those results, the

respondents declared that they could accept Sampoerna Mild cigarettes product.

c. Trust / attitude variable (X3)

The frequency distribution of respondents answer towards trust / attitude can be

described as follow:

Table 4.8 The frequency distribution of trust / attitude (X3)

Variable Score

1 2 3 4 5

f % f % F % f % f %

X3.1

X3.2

X3.3

1

1

1

2

2

2

6

2

1

12

4

2

14

15

11

28

30

22

19

19

22

38

38

44

10

13

15

20

26

30

X3 1 2 3 6 13 27 20 40 13 25

Source: Processed primary data (Appendix 5)

The respondent answer distribution about their trust toward Sampoerna Mild

cigarettes product is good to consume are 10 respondents (20%) state strongly agree,

19 respondents (38%) agreed, 14 respondents (28%) quite agree, 6 respondents (12%)

disagree, and the rest of 1 respondent (2%) state strongly disagree.

Respondents that trust the product quality of Sampoerna Mild obtained result

13 respondents (26%) stated strongly agreed, 19 respondents (38%) agree or believe

that cigarettes Sampoerna Mild quality is good, 15 respondents (30%) stated quite

39

agreed, 2 respondents (4%) said disagree, while the remaining 1 respondent (2%)

stated strongly disagree or do not believe that product quality of Sampoerna Mild

cigarette is good.

Beliefs (trust) / attitudes of respondents to the problem of quality and taste of

Sampoerna Mild cigarettes in deciding the purchase obtained results of 15 respondents

(30%) stated strongly agreed, 22 respondents (44%) agreed, 11 respondents (22%)

stated quite agree and 1 respondent (2 %) states dis agree, while the remaining 1

respondent (2%) stated strongly disagree.

Overall the respondents trust or attitude toward cigarette products Sampoerna

Mild if seen from the results of the distribution of answers to each question, most of

the 33 respondents (65%) have confidence in the products of Sampoerna Mild

cigarettes.

d. Buying decision variable (Y)

Distribution of frequency response of respondents to a buying decision variable

is presented in the following table:

40

Table 4.9 Frequency distribution of buying decision variable (Y)

FIGUR

E

SCORE

1 2 3 4 5

f % f % f % f % f %

Y.1

Y.2

Y.3

9

8

12

18

16

24

3

2

7

6

4

14

7

7

7

14

14

14

11

13

11

22

26

22

20

20

13

40

40

26

Y 10 19 4 8 7 14 12 23 18 35

Source: Processed primary data (Appendix 5)

Most of the respondents agreed to said as someone who often buy products

Sampoerna Mild cigarettes obtained results 20 respondents (40%) stated strongly agreed,

11 respondents (22%) agree, 7 respondents (14%) stated quite agree and 3 respondents

(6%) states disagree, while the rest of 9 respondents (18%) stated strongly disagree

that they often buy Sampoerna Mild cigarettes products.

Within one month of the respondents that buy Sampoerna Mild cigarettes above

10 units are 20 respondents (40%) said they strongly agreed to buy Sampoerna Mild

cigarettes in one month more than 10 units, 13 respondents (26%) agree, 7 respondents

(14 %) stated quite agreed, 2 respondents (4%) said disagree, 8 respondents (16%) stated

strongly disagree.

Most of the respondents agreed not to buy other products if in case, Sampoerna

Mild cigarette products not available obtained results of 13 respondents (26%) stated

41

strongly agreed, 12 respondents (24%) stated strongly disagree, 11 respondents (22%)

expressly agrees and 7 respondents (14%) stated quite agree, while the remaining seven

respondents (14%) said disagree.

Overall purchase decision against Sampoerna Mild tobacco products by the

results of the distribution to each question answered, the majority of 30 respondents

(58%) are people who always buy Sampoerna Mild cigarettes.

B. Research Analysis results

1. Regression analysis

The results from using SPSS for Windows can be presented in the table below:

Table 4.10 Summary of regression analysis result

Independent Variable Regression

Coefficient

Tcount Prob.

Price (X1)

Product (X2)

Trust and Attitude (X3)

0,406

0,459

0,520

3,396

3,235

2,765

0,001

0,002

0,008

Constant

Fcount

R

R2

-1.639

42,542

0,857

0,735

Dependent Variable = Buying decision (Y)

Ftable (α = 0,05) = 2,84

ttable (α = 0,05) = 2,021


42

Regression analysis was used to determine the influence of price, product and

trust / attitudes towards the buying decision. Regression equations derived from data

analysis are as follows:

Y = -1.639 + 0,406 X1 + 0,459 X2 + 0,520 X3

Constant (a) = -1639 show high purchasing decisions if there is no influence of

price, product and beliefs / attitudes. The constant negative value indicates that

consumers would not buy without considering the price, product and beliefs / attitudes.

Based on table 6 above also can be seen that the regression coefficient of each

independent variable is positive means that prices, products, beliefs / attitudes have a

positive influence / direction to the decision to buy, meaning that the better the

respondents' perceptions of price, product or belief / attitude will cause purchasing

decisions of consumers toward products Sampoerna Mild cigarettes.

The value of multiple correlation coefficients (R) of 0.857 indicates a very strong

relationship between price, product and beliefs / attitudes with buying decisions. The

results of analysis obtained value Fcount = 42.542 while the value Ftable = 2.84 so Fcount >

Ftable so prices, products and beliefs / attitudes have a significant relationship with the

decision to buy.

The coefficient of determination (R2) of 0.735 has the meaning of price, product

and beliefs / attitudes contributed 73.5% of consumer buying decisions, while the

remaining 26.5% is caused by other variables not included in the study, for example

reference group, social class and others.

43

2. F – test

F test used to test the effect of price, product and beliefs / attitudes toward buying

decisions. Results obtained by analysis Fcount value = 42.542, while for the level α = 5% is

obtained Ftable value = 2.84 so Fcount > Ftable means Ho is rejected that means prices,

products and beliefs / attitudes significantly affect buying decisions, thus it can be said

that the consumer buying decision determined by prices, products, beliefs / attitudes

toward cigarette products Sampoerna Mild.

3. t – test

Furthermore, testing the effect of each independent variable on the dependent

variable is done by t-test at level α = 5%.

a. Price (X1)

Tcount value of 3.396 while the value Ttable = 2.021 so Tcount > Ttable so that Ho is

rejected it means the price has a significant influence (significant) towards a buying

decision.

Regression coefficient value of 0.406 indicates that price has a direct

influence on purchase decisions; the meaning is more appropriate price so more high-

quality consumer purchase decision against Sampoerna Mild tobacco products.

b. Product (X2)


rejected, it means the product has a big influence (significant) towards a buying

decision.

44

Regression coefficient value of 0,459 indicates that the product has a direct

influence on purchase decisions, meaning the better the perception of respondents

about the quality of products Sampoerna Mild cigarettes, the higher consumer

purchasing decisions on cigarettes Sampoerna Mild.

c. Trust (belief) / Attitude (X3)


rejected it means belief / attitude have a meaningful impact (significant) towards a

buying decision.

Regression coefficient value of 0.520 indicates that the beliefs and attitudes

have a positive effect (direction) against the decision to buy, meaning that the higher

the consumer confidence of Sampoerna Mild Cigarettes product the higher the

consumer purchase decision on cigarettes Sampoerna Mild.

Based on t test results above can be seen that each of the tested variables have a

significant effect (significantly) against the decision to buy, then to determine the

dominant variables that influence purchase decisions by comparing the coefficient

regression values each variable, it turns out beliefs and attitudes have largest

regression coefficient (0.520) means confidence and attitude are the dominant

variables influencing the decision to buy Sampoerna Mild cigarettes.

45

CHAPTER V

CONCLUSION & SUGGESTION

A. Conclusion

Based on the results of research, testing and discussion of research on consumer

behavior can be deduced as follows:

1. From the calculation of the coefficient of determination (R) of 0.735, which means that

changes in purchasing decisions (purchase frequency) of 73.5% showed a strong

relationship between price (X1), product (X2), beliefs and attitudes (X3) with purchase

decisions (Y). While the rest 26.5% are influenced by other variables not included in the

study. It is shown from the results obtained by analysis Fcount value = 42.542, while for

the level α = 5% = 2.84 Ftable values obtained so Fcount> Ftable means jointly prices;

products, beliefs and attitudes significantly influence the decision to buy cigarettes

Sampoerna Mild.

2. The value of multiple correlation coefficients (R) of 0.857 indicates a very strong

relationship between price, product and beliefs / attitudes with buying decisions. The

results of analysis obtained value Fcount = 42.542 while the value Ftable = 2.84 so Fcount>

Ftable so prices, products and beliefs / attitudes have a significant relationship with the

decision to buy.

46

3. Regression equation was derived from data analysis are as follows:

Y = -1,639 + 0,406X1 + 0,459X2 + 0,520X3

a. Constant (a) = -1.639 has a meaning if there is no price effect (X1), product (X2),

beliefs and attitudes (X3), then there is no reason for consumers to purchase tobacco

products Sampoerna Mild.

b. Constant (X1) = 0.406 indicate that prices have a direct influence on purchase

decisions, the meaning is more appropriate price so more high-quality consumer

purchase decision against tobacco products Sampoerna Mild.

c. Regression coefficient of the product (X2) = 0.459 indicates indicates that the product

has a direct influence on purchase decisions, meaning the better the perception of

respondents about the quality of products Sampoerna Mild cigarettes, the higher

consumer purchasing decisions on cigarettes Sampoerna Mild.

d. Regression coefficient beliefs and attitudes (X3) = 0.520 shows the confidence and

attitude have a positive effect (direction) against the decision to buy, meaning that the

higher the consumer confidence of Sampoerna Mild Cigarettes product the higher the

consumer purchase decision on cigarettes Sampoerna Mild.

4. With tcount test of the three variables (product, price, beliefs and attitudes), then the result

is that the most dominant factors that influence the decision to buy cigarettes Sampoerna

Mild is a factor of trust and attitudes shown by tcount> ttable i.e. 2.765> 2.021 and

regression coefficient for price 0.520 is the regression coefficient is greatest.

47

B. Suggestion

The suggestions put forward as follows:

1. Consumer behavior is constantly changing along with the development time. Therefore,

companies must become more responsive and adaptive to the needs and desires of

consumers so they do not switch to other mild cigarette products.

2. Sampoerna Mild cigarette products need to improve the archipelago taste and flavor from

other countries so that consumers will continue to consume tobacco products of

Sampoerna Mild.

3. By looking at the fact that the variable pricing, products, beliefs and attitudes affect the

frequency of purchase it is recommended that the company always pay attention to the

product of factors that have a dominant influence on purchase decisions

BIBLIOGRAFY

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factor analysis on consumer behavior and decision...

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