THE EFFECT OF BRAND AWARENESS AND BRAND TRUST …

THE EFFECT OF BRAND AWARENESS AND BRAND TRUST

TOWARD CONSUMER BUYING DECISION

ON ONLINE SHOP

( CASE STUDY OF FORUM JUAL BELI KASKUS AMONG STUDENTS

AT PRESIDENT UNIVERSITY)

By

Fredy Hermanto

ID No. 014200900057

A thesis presented to the

Faculty of Economic President University

in partial fulfillment of the requirement for

Bachelor Degree in Economics Major in Management

January 2013

I

THESIS ADVISER

RECOMMENDATION

LETTER

This thesis entitled “THE EFFECT OF BRAND AWARENESS

AND BRAND TRUST TOWARD CONSUMER BUYING

DECISION ON ONLINE SHOP (CASE STUDY OF FORUM

JUAL BELI KASKUS AMONG STUDENTS AT PRESIDENT

UNIVERSITY)” prepared and submitted by Fredy Hermanto in

partial fulfillment of the requirements for the degree of Bachelor in

the Faculty of Economy has been reviewed and found to have

satisfied the requirements for a thesis fit to be examined. I therefore

recommend this thesis for oral defense.

Cikarang, Indonesia, 23rd

January 2013

Acknowledged by, Recommended by,

Irfan Habsjah, MBA, CMA T. Manivasugen, MBA

Head of Management Study Program Thesis Adviser

II

DECLARATION OF ORIGINALITY

I declare that this thesis, entitled “THE EFFECT OF BRAND

AWARENESS AND BRAND TRUST TOWARD CONSUMER

BUYING DECISION ON ONLINE SHOP (CASE STUDY OF

FORUM JUAL BELI KASKUS AMONG STUDENTS AT

PRESIDENT UNIVERSITY)” is the best of my knowledge and

belief an original piece of work that has not been submitted, either in

whole or in part, to another university to obtain a degree.

/

Cikarang, Indonesia, 23rd

March 2013

Fredy Hermanto

III

PANEL OF EXAMINERS

APPROVAL SHEET

The Panel of Examiners declared that the thesis entitled “THE

EFFECT OF BRAND AWARENESS AND BRAND TRUST

TOWARD CONSUMER BUYING DECISION ON ONLINE

SHOP (CASE STUDY OF FORUM JUAL BELI KASKUS

AMONG STUDENTS AT PRESIDENT UNIVERSITY)” that

was submitted by Fredy Hermanto Majoring in International

Business from the Faculty of Economic was assessed and approved

to have passed the oral examinations on 5th

March 2013.

Drs. Bruno Rumyaru, MA

Chair – Panel of Examiners

Irfan Habsjah, MBA, CMA

Examiner II

T. Manivasugen, MBA

Examiner III

IV

ABSTRACT

General View - This thesis is the study, learn, and research about factor that influence consumer

buying decision on Forum Jual Beli Kaskus among students at President University by looking at

several factors that can influence them such as brand awareness and brand trust.

Objective–The objective of the study is to analyze the effect of brand awareness and brand trust

toward consumer buying decision on Forum Jual Beli Kaskus among students at President

University by seeing which indicators of brand awareness and brand trust that give and contribute

more to consumer buying decision and to find out whether or not there is a correlation between

brand awareness and brand trust..

Design/Methodology/Approach - The researcher used Quantitative analysis in implementation on

the research, where in this research the researcher made and spread questionnaire to President

University students batch 2012 who stay at dormitory or in President University campus. The

questionnaire was made and designed based on the theoretical framework of brand awareness,

brand trust and consumer buying decision theory. In this research, the researcher used multiple

regression tools and SPSS Version 20.

Findings –It was observed and studied that in this research, the reseacher found that among the

indicators contained in brand awareness and brand trust; top of mind, brand recall, brand

recognition, reliability, and intentionality, there were only four indicators which contribute and

significantly influence consumer buying decision on Forum Jual Beli Kaskus among students at

President University. Those four indicators are brand recall, brand recognition, reliability, and

intentionality.

Originality/Value – The researcher hopes that through this research and study, it can help other

people who study or do researches related with this study and especially for Kaskus Online

Company. The researcher hopes with this study it can help the company to further develop and

keep improving in the future.

Keywords – Brand Awareness, Brand Trust, Consumer buying decision, Quantitative analysis,

The Multiple Regressions model, and Kaskus.

V

ACKNOWLEDGEMENT

In this chance, I would like to express my sincere gratitude and deepest appreciation to my

family, adviser, and friends. This thesis would not have been possible for me to accomplish

without helps and support from those people who had contributed and given their valuable

assistance in the preparation and the completion of this study. Therefore I dedicated all of my

gratitude feeling to all of people who have supported me as stated below:

1. For my Parents, my father, my mother and my entire sisters, thank you very much for

always encouraging, supporting, teaching and advising me in every aspect in my life.

2. For my first and the only adviser Mr. T. Manivasugen, I really appreciate for everything

that you have taught me, every guidance, taught, effort, time, and hard work that you put in

for me. I will not forget everything, I think without your valuable advises I would not

complete this study, therefore thank you very much.

3. All of my best friends who have been together with me from the first time until today.

Starting from my lovely ever riweuh team; ubas, annisa, ady, juli, zahra, debby, berry, and

stefi for the time we laugh, we hate, and all the greatest moments with all of you. Next is

IB’s brother; najib, erry, sucing, willy, eko, andrea, henok, maul, susan, and marvela for the

togetherness. Thank you to all them for the funny, mad and happy memories with me

during my studies in President University. And then Chveron’s geng; celek, nindy, renok

and indah for the togetherness in beloved office. Last but not least is my best friends in

Binus u9a; steven, asen, markus, and dede for the time we have spent together. And for all

the laugh, smile and tears during this last semester. Thank you all X.O.X.O

4. For all people who have spent their time, thoughts and contribution for filling my

questionnaire. Without your contribution, I would not be able to finish this thesis, therefore

through this opportunity I would like to say thank you very much and I appreciate for all of

your effort in contributing in this study.

Cikarang, January 1st 2013

Fredy Hermanto

VI

Table of Contents

THESIS ADVISER RECOMMENDATION LETTER ……….…..........................…………..….I

DECLARATION OF ORIGINALITY …….………………….………………..............................II

PANEL OF EXAMINERS APRROVAL SHEETS …………..………………..............................III

ABSTRACT ……………………………………………………..………………..........................IV

ACKNOWLEDGEMENT ………………………………………..……………............................V

TABEL OF CONTENTS ………………………………………………………............................VI

LIST OF TABLES ……………………………...………………………………...........................IX

LIST OF FIGURES ……………………………...………………………..........................……...X

LIST OF ACRONYMS …………..........................………………………………………………XI

CHAPTERS

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

1.1 Background of Study ……………………..…………………......................……………..1

1.2 Company Profile ……………………………………………….…………........................6

1.3 Problem Identification ……………………………………………………........................7

1.4 Statement of Problem …………………………………………………….........................8

1.5 Research Objective ……………………………………………………….........................8

1.6 Significance of Study ……………………………………………………..........................9

1.7 Theoretical Framework …………………………………………………….......................9

1.8 Scope and Limitations ……………………………………………………........................10

1.9 Assumptions and hypothesis ………………………………………………......................11

1.10 Definitions of Terms ………………………………………………………......................12

II. LITERATURE REVIEW ………………………………………………................................13

2.1 Brand ……........…………………………………………………………..........................13

VII

2.2 Brand Awareness ……………....………………………………………….......................16

2.3 Brand Trust ………………………………………….........................…….......................19

2.4 Consumer Buying Decision ...............................................................................................22

2.5 The Effect of Brand Awareness on Consumer Buying Decision ......................................24

2.6 The Effect of Brand Trust on Consumer Buying Decision ...............................................25

III. METHODOLOGY …………………………………………………………............................26

3.1 Research Method …………………………………………………………......................26

3.2 Research Framework ………………………………………………………....................27

3.3 Research Time and Place ..................................................................................................29

3.4 Research Instruments ........................................................................................................29

3.4.1 Data Collection .................................................................................................................30

3.5 Statistical Treatment ...................................................................................... ...................31

3.5.1 Validity Testing by Using SPSS .......................................................................................31

3.5.2 Reliability Testing by Using SPSS ...................................................................................33

3.6 Multiple Regression Method .............................................................................................33

3.7 Classical Assumption Test ................................................................................................37

3.7.1 Normality Assumption ......................................................................................................37

3.7.2 Multicollinearity Assumption ...........................................................................................38

3.7.3 Heteroscedasticity Assumption .........................................................................................39

3.8 Testing the Hypothesis ......................................................................................................39

3.9 Limitations ........................................................................................................................40

3.10 Data Analysis ....................................................................................................................40

IV. Analysis of Data and Interpretation of Results ………….…….………................................42

4.1 Data Result of Validity and Reliability Testing ………..…………..………...................42

VIII

4.2 Multiple Regressions Analysis ………………………………...……………...................46

4.2.1 Descriptive statistics ………………………....……...………......……….....................…49

4.2.2 Coefficient Correlation Analysis (R) ………………………...….....…....….....................51

4.2.3 Coefficient of Determinant Analysis (Adjusted R Square) ...............................................54

4.2.4 F – Test ..............................................................................................................................55

4.2.5 T – Test ..............................................................................................................................56

4.3 Classical Assumption Test .................................................................................................58

4.3.1 Normality Assumption ......................................................................................................58

4.3.2 Multicollinearity Assumption ............................................................................................60

4.3.3 Heteroscedasticity ..............................................................................................................61

V. CONCLUSION AND RECOMMENDATION …………………...........................................63

5.1 Conclusions ........................................................................................................................63

5.2 Recommendation ...............................................................................................................64

5.2.1 Recommendation for the Organization .............................................................................64

5.2.2 Recommendation for Future Research ..............................................................................64

LIST OF REFERENCES ………………………………………………………......................…65

APPENDICES ……………………………………………………………………......................69

1. Pre-Test Questionnaire …………………………………………..........….......................69

2. Questionnaire ....................................................................................................................73

3. r Table ...............................................................................................................................76

IX

LIST OF TABLES

Table 3.1 Likert Scale .................................………………………………......................………..30

Table 3.2 Interpretation of R Value .......................................…………………….........................35

Table 4.1 Result of Validity Test .........................................…………………....….......................43

Table 4.2 Valid Question ................................……………………………………........................44

Table 4.3 Result of Reliability Test ……………………......………………………......................45

Table 4.4 Unstandardized Coefficients Result of Brand Awareness …………..............................46

Table 4.5 Unstandardized Coefficients Result of Brand Trust …………………….......................48

Table 4.6 Descriptive Analysis of Variables Brand Awareness ………………...…......................49

Table 4.7 Descriptive Analysis of Variables Brand Trust …………………………......................50

Table 4.8 Model Summary Result of Brand Awareness …………………………........................50

Table 4.9 Model Summary Result of Brand Trust ……….………………………........................51

Table 4.10 Pearson Correlations Result of Brand Awareness ……………….....…......................51

Table 4.11 Pearson Correlations Result of Brand Trust …………………………........................53

Table 4.12 Pearson Correlations Result of Brand Awareness and Brand Trust….........................54

Table 4.13 F – Test Result of Brand Awareness ...……………………………….........................55

Table 4.14 F – Test Result of Brand Trust …...........…….……………………….........................55

Table 4.15 T - Test Result of Brand Awareness ….....................……………...........................…56

Table 4.16 T - Test Result of Brand Trust ……………………….....................…........................57

Table 4.17 Result of Multicollinearity Test on Brand Awareness …............................................60

Table 4.18 Result of Multicollinearity Test on Brand Trust …..........…………….......................60

X

LIST OF FIGURES

Figure 1.1 Theoritical Framework …............................................……………......................…...10

Figure 2.1 Indicator of Brand Awareness …................……………………………......................18

Figure 2.2 Consumer Decision-Making Process …............................……………........................22

Figure 3.1 Research Framework ……………….………………………………….......................28

Figure 3.2 Pearson’s Correlation to Measure Validity .....................………….…........................32

Figure 3.3 Cronbach Alpha ……......................……………………………….…........................33

Figure 3.4 Mean Correlation Coefficient between Variables ….…………….……......................35

Figure 4.1 Result of Normality Test on Brand Awareness ….................…….……......................58

Figure 4.2 Result of Normality Test on Brand Trust ………….................................................…59

Figure 4.3 Result of Heteroscedasticity Test on Brand Awareness ………….…..........................61

Figure 4.4 Result of Heteroscedasticity Test on Brand Trust …………………............................62

XI

LIST OF ACRONYMS

SPSS : Statistical Products and Solution Service

VIF : Variance Inflation Factor

GDP : Gross Domestic Product

FJB : Forum Jual Beli

1

CHAPTER I

INTRODUCTION

1.1. Background of the Study

Human needs for updated information are increasing rapidly. Internet is one of

the means used by people to find information. Through the internet, people are

not only looking for information, but also for purchasing discount products. A lot

of people like to buy products from the internet because they think it is more

efficient in terms of the time required and also the transaction process itself. This

transaction is known as e – commerce.

As stated by Mark Van Ketel and Tim D. Nelson (2005) that e-commerce

(electronic commerce or EC) is the buying and selling of goods and services on

the Internet, especially on the World Wide Web. In practice, this term and a

newer term, the e-business, are often used interchangeably. For online retail

selling, the term e-tailing is sometimes used.

The growth of the internet‟s users in Indonesia is quite high. Most of citizen in

Indonesia now are connected to the internet through their computers,

smartphone, tablets, and another mobile gadgets. According to MarkPlus Insight

(MarkPlus Insight Netizen Research 2011), internet user in Indonesia has reached

55 million users, increasing 13 million from 42 million users in 2010.

In every city that has been surveyed by MarkPlus Insight (MarkPlus Insight

Netizen Research 2011), around 50 - 80% internet users are youngsters of 15 – 30

years old. Based on the research released by Aquarius, consultant of

http://searchcio.techtarget.com/definition/e-business

http://searchcio.techtarget.com/definition/e-tailing

2

communication strategy for digital media, internet user in Indonesia is dominated

by youngsters. Approximately 40% out of 55 million internet users in Indonesia

are 15-24 years old, 33% of them are 25-34 years old and 35-44 is 17%.

(Aquarius, 2012)

Mobile internet penetration in Indonesia recently has reached 57%. In terms of

population, MarkPlus Insight (MarkPlus Insight Netizen Research 2011) data

shows that Indonesia recently reached 29 million mobile internet users, there

was an increase of 16 million users as compared to the previous year. Similar to

MarkPlus Insight, Aquarius showed that more than half of internet users in

Indonesia used devices or gadget as their access to the internet. With a huge

population, Indonesia becomes 4th

biggest country in terms of mobile phone

users in the world. (Aquarius, 2012)

Even though the use of the internet connection as only 14 hours a week, they

were active users. February 2012, Nielsen Audience Measurement Indonesia

released their 26th

edition newsletter that showed internet usability in Indonesia.

The results showed that 81% were used for social media activities, 53% for

email, 49% for online news, 45% for browsing, and 44% for gaming online.

From the research data above, it can be seen that the growth and mobilization era

has changed the life style of people. Every person as a human being should agree

that internet has made people‟s life easier in many ways, especially for shopping;

a lot of people need to shop to fulfill their requirement as a human being. One of

the impacts of internet growth is the increase of online shopping practice. Even

though the growth of online shop in Indonesia is probably slower than other

countries like US or European countries, it has been increasing steadily for the

past 2 years. According to Frost & Sullivan research in 2011, the total amount of

e-commerce transaction in Indonesia reached approximately US$1 billion.

(www.galeriukm.com, 2012)

3

The trend of online shopping grows and expands surprisingly because back to

couple of years ago, online shop was quite odd and unfamiliar for Indonesian

people who were used to a conventional trading system. Apart from that, the

internet facility in Indonesia was still lacking in many aspects. As a result, online

shopping was less desirable. Just two years ago, a tiny three percent of

consumers surveyed by Nielsen had made an online purchase in the past six

months. Now, 80 percent say they will buy something online in the next six

months. Although it is below the average of the Asia Pacific region, Indonesian

consumers have a very high propensity toward online shopping. (Nielsen, 2012)

(http://blog.nielsen.com/nielsenwire/consumer/winning-the-hearts-of-

indonesian-consumers/)

No doubt if online shopping has become more popular in Indonesia. The reason

is because it eases their lives in many ways. According to one of world‟s

independent market researcher Ipsos (Interconnected World: Shopping and

Personal Finance) 69% of internet users in Indonesia use the web to research

products they wish to buy. Still from Ipsos data, it shows that there are 44% of

internet users in Indonesia who use internet to buy products or services online.

That is the reason why in this digitalization era, many people prefer to use

transaction with e – commerce, because it is easier and more efficient.

One of the most successful online forums in Indonesia is Kaskus. Kaskus was

established in November 6th

1999 by three inspiring Indonesian youngsters

Andrew Darwis and two of his college friends when they study at University of

Seattle. Inspired by Detik.com, initially Kaskus was started out as a news portal.

Unfortunately, the team couldn‟t compete with Detik.com. Traffic at Kaskus was

small and monetizing the site was tough. But Kaskus was just a hobby anyway.

It wasn‟t a formalized business and making money wasn‟t the priority. Soon

after, two of the other co-founders got tired and wanted out. In 2000, Andrew

4

decided to transform Kaskus into a bulletin board forum for communities. In

2008, Andrew met with Ken Dean Lawadinata as an investor and also as a CEO.

In 2011, Kaskus made a decision to receive investment from GDP Ventures. Ken

said that the connections that GDP Ventures had with the largest bank in

Indonesia, BCA, and also other connections in the local space, were important

factors in their decision to go with GDP Ventures. Kaskus isn‟t just going to

focus on forum and online community building. Ken and Andrew have set their

eyes on e-commerce and e-payment, both of which don‟t have a clear market

leader in Indonesia, yet. Ken said: “With our user base, we have a chance to be

the eBay and Paypal of Indonesia.”

The transition to venture into e-commerce is natural as many users in Kaskus are

already using the forum to review, buy, and sell products. Ken says that Kaskus‟

merchant platform will be similar to eBay‟s. But for a start, it will not be

charging users for product listings. Ken wanted to build its user base in its

merchant listing and he pointed out the case study in China between eBay and

Taobao.com. The most popular forum in Kaskus now is FJB, which stands for

„Forum Jual Beli‟ or „Trading Forum.‟ It has helped the website rise to the

seventh most popular in Indonesia (according to Alexa), and it has also become

one of most popular online shopping destination in the country. People are

allowed to sell anything in this free platform, as long as it‟s legal. Its escrow

payment service, Kaspay, also has a healthy number of users, 100,000 so far. All

in all, Ken says that he hopes a typical Indonesian will read reviews on Kaskus‟s

forum, find the product at Kaskus, buy the product at Kaskus, and pay for it with

Kaspay. He added: “There’s a lot of competition in e-commerce and e-payment

right now. But we believe we have the users and the cashflow to sustain our

vision.” The future looks bright for Kaskus as it expands to different verticals. It

now has 4 million registered users, 20 million unique users, generating over 800

million page views each month. (www.techinasia.com, 2012)

5

Numerous Kaskus users found that the website, which got a new outlook quite

recently, had many performance-related issues, such as: slow page loading, users

were unable to post and reply in a forum, unable to view a posting from other

Kaskus users, and others. This may happen when there are many users with

different motives (not only for purchasing a product but also for entertainment)

who access the website at the same time. Moreover, some users also commented

on the website‟s new outlook and fonts which they thought were confusing and

were not as attractive as the old (previous version of) Kaskus.

(http://www.kaskus.co.id/thread/50876c72582acf1c26000007/masukan-untuk-

performance-new-kaskus/1)

By seeing the situation above, there are many competitors springing up.

According to Indonesia E-commerce Association (IdEA) there are twelve

competitors which consist of Berniaga, Bhinneka, BliBli, DealGoing, Gramedia,

Kaskus, Multiply, Plasa, Tokobagus, Tokopedia, Veritrans, And XL Axiata.

They have been registered as a website for E-commerce. (www.techinasia.com,

2012)

Based on the springing up competitors, many of the Kaskus‟s customer have

shifted to other websites to buy produts or services because they are more

focused on the E-commerce transaction such as Berniaga.com and

Tokobagus.com. The customers have shifted because people mostly know

Kaskus as a social media.

In order to revive its online trading page, Kaskus has to improve brand

awareness to get new customers and brand trust to maintain its existing

customers. According to the journal of Brand Awareness Effect on Consumer

Decision Making for a Common, Repeat Purchase Product: A Replication from

Emma K. Macdonald and Byron M. Sharp (2000) said that “Brand Awareness

6

has a significant effect on consumer decision-making with the brand entered the

stage of consideration of the influence and impact of selected brand

consideration stage”. While according to Sherriff T.K. Luk, Leslie S.C. Yip

(2008) said that the highlight of brand trust is that consumers have a big positive

expectation and believe on the brand. Based on the believe itself, the consumers

can decide whether they would like to take a decision to buy it or not. The

condition shows that brand trust has a big influence on consumer buying

decision.

1.2. Company Profile

Kaskus is the largest virtual community forum site and the No.1 in Indonesia and

kaskus user is called Kaskuser. Kaskus was born on November 6, 1999 by three

young men from Indonesia; they are Andrew Darwis, Ronald Stephen, and Budi

Dharmawan, who studies in Seattle, USA. This site is managed by PT Darta

Media Indonesia. Kaskus has more than 3.4 million registered users. Kaskus

users generally come from teenagers to adults who are domiciled in Indonesia

and outside of Indonesia.

(http://manajemenringga.blogspot.com/2012/02/kaskus-profile-in-english-

languange.html)

On 2008 proved to be a pivotal year for Kaskus. Not only did Andrew finish his

master‟s program but he also snagged Ken Dean Lawadinata as an investor and

also as CEO. Meanwhile, Andrew took the helm as CTO. At age 26, Ken is now

the youngest CEO in Indonesia. He explained to me that back then he saw huge

potential in Kaskus and decided to dive straight in. His dedication to Kaskus also

saw him drop out of college to run his internet business full-time. Both of them

met while Ken was studying in the US. They were cousins and also good

business partners. Kaskus turned out to be a giant that made an impact in the

Indonesian internet industry. (www.techinasia.com, 2012)

7

Kaskus is an abbreviation of the word Kasak Kusuk, begins from a hobby of a

small community that later evolved until now. Kaskus visited by at least 900

thousand people, with the number of page views exceeding 15 million every day

until September 2011, Kaskus also has more than 416 million posts. According

to Alexa.com, in September 2011 Kaskus is ranked 251 of the world and ranked

the seventh most visited site in Indonesia.

In August 2005, PC Magazine Indonesia presented awards to the best site of

Kaskus as the site of the largest communities, then Kaskus re-selected as the best

site PC Magazine's reader's choice in 2006. While in July 2008, Manager Kaskus

decided to operate the server Kaskus in Indonesia. Kaskus buy 8 servers Dell

PowerEdge 2950 and operated through a network. And then the manager plans

to add eight more servers so the total server will operate in September is 16

servers. In the beginning of 2011, Kaskus announced of establish cooperative

relationships with the Global Digital Prima which is a subsidiary of PT Djarum.

Besides that, Kaskus also will add the servers up to 250 pieces and recruit new

employees up to 80 people.

(http://manajemenringga.blogspot.com/2012/02/kaskus-profile-in-english-

languange.html)

1.3. Problems Identification

The competition among the online shop business is quite intense. They always

develop and make innovation or improvement in order to survive in the

competition. Kaskus being one of the most sought after online shopping

websites is now facing a tough competition from Berniaga.com and

Tokobagus.com. Many people prefer using Berniaga.com because they are

more focused on transaction, while Kaskus is considered more as a social

media to interact each other. In this research, the researcher wants to know the

8

effect of brand awareness and brand trust on consumer buying decision and also

if there is any correlation between brand awareness and brand trust.

1.4. Statement of the Problem

This research is going to analyze the effect of brand awareness and brand trust

on consumer buying decision on Forum Jual Beli (FJB) Kaskus. Based on the

problems identified above, this research tries to answer these questions:

1. Does brand awareness of Kaskus as the largest community in Indonesia

have an influence on people’s purchasing decision to buy any products on

Forum Jual Beli (FJB) Kaskus?

2. Does brand trust of consumers have an influence on Kaskus consumers to

buy any products on Forum Jual Beli (FJB) Kaskus?

3. Is there any correlation between brand awareness and brand trust?

1.5. Research Objectives

In order to specify and focus on the problems that will be addressed, the

researcher covers the following objectives:

1. To find out the effect of brand awareness on the consumer‟s decision to buy

any products on Forum Jual Beli (FJB) Kaskus.

2. To find out the effect of brand trust on the consumer‟s decision to buy any

products on Forum Jual Beli (FJB) Kaskus.

3. To find out whether or not there is a correlation between brand awareness

and brand trust.

9

1.6. Significance of the Study

1. For academic community

a) The researcher wishes this study could give contributions especially in

the field of brand awareness, brand trust, and customer purchasing

decision.

2. For the Researcher

a) Gain more understanding about the brand awareness theory.

b) Gain more understanding about the customer purchasing decision

theory.

c) Gain more understanding about the brand trust theory.

3. For the Company

a) Have a good understanding and knowledge about brand awareness and

brand trust that can influence customer purchasing decision especially in

Forum Jual Beli (FJB) Kaskus, which can be used to determine the next

step to survive in this business.

1.7. Theoretical Framework

This is a self-construct theoretical framework. The figure 1.1 below shows there

are 2 classifications of factors that can influence consumer buying decision. First

is about the effect of brand awareness on consumer buying decision. Next is

about the effect of brand trust on consumer buying decision. Actually in the

brand awareness variable there is an indicator which is called unaware of brand.

10

But in this research that indicator has been deleted because the researcher will

distribute to respondents who only know about the brand itself.

Figure 1.1. Theoretical framework

Source: self-construct

1.8. Scope and Limitation

In order to keep this research on the right track and avoid the unrelated factors,

the researcher has to limit this research. Some of the limitations are as follows:

1. The researcher chose Forum Jual Beli (FJB) Kaskus because it faces severe

competition from other online has the largest community in Indonesia.

2. Due to the limited time, the researcher used the students or President

University as respondents.

3. The researcher focused on Brand awareness and brand trust only. Other than

these two factors are not considered in this research work.

Brand Awareness

(X1)

1. Top of Mind (X1.1)

2. Brand Recall (X1.2)

3. Brand Recognition (X1.3)

Brand Trust

(X2)

1. Reliability (X2.1)

2. Intentionality (X2.2)

Consumer Buying

Decision (Y)

11

1.9. Assumption and Hypothesis

Based on the problem statement in this thesis, the researcher has made hypothesis

as follows:

Null Hypothesis (Ho1) Brand awareeness has no influence towards the consumer

buying decision.

Alternative Hypothesis (Ha1) Brand awareness has an influence toward the

consumer buying decision.

Null Hypothesis (Ho2) Brand trust has no effect on consumer buying decision.

Alternative Hypothesis (Ha2) Brand trust has an influence on consumer buying

decision.

For the next hypotheses, the researcher has an assumption that brand awareness

stands as an independent variable and brand trust as a dependent variable. This

assumption is made to meet the requirement in which the degree of relationship

can be found between an independent variable and a dependent variable.

Null Hypothesis (Ho3) There is no correlation between brand awareness and

brand trust.

Alternative Hypothesis (Ha3) There is a correlation between brand awareness and

brand trust.

12

1.10. Definitions of Terms

1. E-tailing: The selling of retail goods on the internet.

(http://searchcio.techtarget.com/definition/e-tailing)

2. Market Penetration: A measure of the amount of sales or adoption of a

product or service compared to the total theoretical market for that product

and service.

(http://www.investopedia.com/terms/m/market-

penetration.asp#axzz2IAOpzpVQ)

3. Mobilization: Any process by which solid rock becomes sufficiently soft and

plastic to permit it to flow or to permit geochemical migration of the mobile

components.

(http://www.answers.com/topic/mobilization)

4. Venture: Money provided by investors to startup firms and small business

with perceived long-term growth potential.

(http://www.investopedia.com/terms/v/venturecapital.asp#axzz2IAOpzpVQ)

5. E-payment: A financial exchange that takes place online between buyers and

sellers.

(http://webserver.ignou.ac.in/virtualcampus/adit/course/cst304/ecom2.htm)

13

CHAPTER II

LITERATURE REVIEW

2.1. Brand

According to Knaap (2000) the brand has to internalize a sense of impressions

received by customers and consumers which led to a special position in their

memory for emotional and functional benefits perceived. A brand can be special

if the consumers feel confident that the brand is really special. To have some

particular brand, the companies at least meet or fulfill of the following statements

such as:

1. Is the brand really different from the others?

2. Does the brand have a great commitment to providing certain

emotional and functional benefits to consumers?

3. Does the brand promise consistently and express the commitment to

consumers?

Brand also has types such as:

a) Trademark

Trademarks are the brands used in the goods traded by a person or

persons jointly or a legal entity to distinguish it from the other

similar goods.

b) Brand Services

Service mark is the brand used for services traded by a person or

persons jointly or even a legal entity to distinguish it from other

types of services.

c) Collective Brand

Collective Brand is a brand used on goods and services with a

characteristic that has similarities to those traded by a few people or

14

legal entities together to distinguish it from other similar goods and

services.

According to Aaker (1996) brand is a name or symbol that distinguishes nature

(such as a logo, stamp, or packaging) in order to identify the goods or services of

one seller or another in a certain. While according to Stanton (1996) brand has a

sense as a name, term, symbol, design or some combination of special elements

that designed to identify the products or services offered by the seller. Based on

Kotler (2000) the brand is a statement of the seller to consistently deliver the

best features, benefits and certain services to the buyer, not only just a symbol

that distinguishes a particular company's products with competitors.

According to Simamora (2003: 49 – 51) strong brands get some benefits such as:

1. Loyalty that allows the recurring transaction. For example, you are

loyal consumer to buy Coca-cola, you will do transaction again and

you are not just buying the product at once. So the result is the

corporate profits earned instead of more than a single transaction.

2. Strong brands allow the company set a higher price (premium), which

means higher margins for the company.

3. Strong brand gives credibility on other products that use on the same

brand.

4. Strong brand give higher of return.

5. Strong brand enables differentiation relative to create a clear

competitor, valuable and sustainable.

6. Strong brand enables to create a clear internal focus, which means

with a strong brand, our corporate can understand what the brand

value is and what they need to do to carry the brand itself.

15

7. The stronger the brand it show where loyalty is higher, then the

consumer will be more tolerant of the mistakes product from

production of company.

8. Strong brand becomes more interesting factor for the high quality

employees and also keeping their credibility as an employee.

9. Strong brand can be a good interesting factor for consumers.

10. Brand also can be one of the factors on consumers purchasing

decision.

According to Rangkuti (2004: p.37) a brand should have some criteria such as:

1. The name of a brand should demonstrate the benefits and quality of

these products.

2. The brand name should be easy to pronounce and easy to recognized

or even remember it.

3. The brand name should be easily distinguishable and the meaning

itself must be specific.

4. The brand name should be able to have the right to be registered at

the legal institutions.

According to Simamora (2002: p.50) a strong brand can attract consumers to be

the factors of the consumer purchasing decision. The uniqueness of brand can

create a good decision for every consumers on the decision making. Based on the

experience of the researcher, the researcher would like to buy any single

products based on the brand. So brand have a strong power to make a people

decision making.

Based on the theory from each author above, the researcher can take a

conclusion that brand is one of the main factors to build the company image. If

company have a good image about their brand, it will bring a customers to buy.

16

Most of people consider to buy some products or services based on brand itself.

That is why brand is an important factors to create some products or services.

2.2. Brand Awareness

According to East (1997, p.29), Brand Awareness defines as “the recognition and

recall of a brand and its different from other brands in the field”. In other words,

brand awareness involves the feelings people to recognize and remember the

uniqueness of some brands that have a difference with another brand. According

to Tara Gustafson and Brian Chabot (2007) in Cornell Maple Bulletin 105, the

major components of a plan to develop brand awareness are:

Identifying and understanding your target customers.

Creating a company name, logo, and slogans

Adding value through packaging, location, service, special events, etc.

Advertising

After-sale-follow up and customer relations management.

Targeting the right audience is crucial to your success. Of similar importance, is

understanding that you need a plan along with specific actions that increase

awareness of your brand amongst your consumers. Throughout the entire process

of creating a brand, it is of utmost importance to consider how what you do will

increase brand awareness.

Brand awareness means the ability of a consumer can recognize and recall a brand

in different situations (Aaker, 1996). Brand awareness consists of brand recall and

brand recognition. Brand recall means when consumers see a product category,

they can recall a brand name exactly, and brand recognition means consumers has

ability to identify a brand when there is a brand clue. That is, consumers can tell a

brand correctly if they ever saw or heard it. Moreover, Hoeffler and Keller (2002)

indicate that brand awareness could be distinguished from depth and width. Depth

17

means how to make consumers recall or identify the brand easily, and width

express infers when consumers purchase a product, a brand name will think of

specific brand when they want to buy a product. That is, the product has higher

brand awareness. Moreover, brand name is the most important element in brand

awareness (Davis, Golicic and Marquardt, 2008). As a consequence, brand

awareness will affect purchase decision through brand association, and when a

product owns a positive brand image, it will help in marketing activities (Keller,

1993). A brand name offers a symbol that can assist consumers to identify service

providers and to predict service results (Herbig & Milewicz, 1993; Janiszewski

and Van Osselaer, 2000; Turley and Moore, 1995).

Brand awareness plays an important role on purchase intention because consumers

tend to buy a familiar and well known product (Keller, 1993; Macdonald and

Sharp, 2000). Brand awareness can help consumers to recognize a brand from a

product category and make purchase decision (Percy & Rossiter, 1992). Brand

awareness has a great influence on selections and can be prior consideration base

in a product category (Hoyer and Brown, 1990). Brand awareness also acts as a

critical factor in the consumer purchase intention, and certain brands will

accumulate in consumers‟ mind to influence consumer purchase decision. A

product with a high level of brand awareness will receive higher consumer

preferences because it has higher market share and quality evaluation (Dodds et

at., 1991; Grewal et at., 1998).

18

There are 4 indicator of brand awareness, such as:

Figure 2.1 Indicator of brand awareness

Source: adapted from David A. Aker, 1997

1. Unaware of brand

It is the lowest level in the pyramid of brand awarenss where consumers are

not aware of existence of a brand.

2. Brand recognition

Minimun level of brand awareness. This is important as a buyer to choose a

brand when making a purchase.

3. Brand recall

Recall on a brand based on request for someone to mention a particular brand

in a product class. This termed the warning again without help. Because it is

different from recognition test, respondent do not need to be help to raise

brand.

4. Top of mind

If someone asked directly without any help of admoishment and he can

mention the brand name, the brand most mention first is top of mind. In other

word, the brand is the brand that exist in the mind of customers.

19

2.3. Brand Trust

According to Delgado (2003), brand trust is a feeling of security held by the

consumer in his/her interaction with the brand. On the other hand, Delgado also

tells that brand trust is the expectation of reliability and also a good intention of

the brand. The trustworthy will be gained because of the expectation that the

other party can act based on the needs and desires of customers. When someone

has been trusted on the other party, they know that expectations will be fulfilled

and reducing disappointments. Brand trust also can be described as the existence

of a high expectation that some particular brand will bring a positive result for

customers. While according to Tjahyadi (2006), brand trust means a customer

wishes to rely or believe on a brand with all the risks and faced by the

expectations of the brand that will lead to positive results.

According to Delgado (2005), about feeling of security is based on two

dimensions:

The first one is reliability that has a technical nature because it concerns

the perception that the brand can fulfill or satisfy consumers‟ needs. It is

related to the individual‟s belief that the brand accomplishes its value

promise. In our opinion, this first dimension is essential for trusting in a

brand because if we consider a brand as the promise of a future

performance, its reliability image for the accomplishment of that promise

leads the consumer to trust in the occurrence of future satisfaction.

Underlying this dimension there is a sense of predictability that the brand

satisfies the individuals‟ needs in consistently positive ways. Therefore, it

implies to attribute a set of characteristics to the brand related to the

accomplishment of its value promise in a consumption context already

known and experiment by the individual.

The second dimension of brand trust, intentionality, reflects an emotional

security on the part of individuals. It describes the aspect of a belief that

20

goes beyond the available evidence to make individuals feel, with

assurance, that the brand will be responsible and caring despite future

problematic situations and circumstances with the consumption of the

product. Convictions on this nature are thus held and acted on in the

present with the confident expectation that future events will probe them

to be correct. Therefore, it is concerned with the belief that the brand is

not going to take advantage of the consumer‟s vulnerability.

From both of them in above, the intention indicator have the biggest influence on

brand trust rather than reliability side, especially on the low involvement product

such as fast moving consumer goods. Mostly the customers will look the same

on an achievement or performance that arise from each of products itself. That is

why in this side can be a reference to the product manager or brand manager to

create a further highlight on the customer‟s intention of a product in fast moving

consumer goods.

According to Ferriadewi (2008), both of the component indicators of brand trust

create based on consumer appraisal that subjective or has some of perception

such as:

1. The consumer perceptions of the benefits or advantages that can be

provided by a product or brand.

2. The consumer perception of brand reputation, consumer perceptions of

the commonality of interests our self with the seller and also their

perceptions of the extent to which consumers can control the vendor and

the perception itself.

Based on the perception above, marketer need to pay attention on what stimulus

must be provided that the perception is formed in accordance with the expected

brand. The stimulus should be tailored to the demographics of consumers

21

because the consumer impression formation is determined by the wearer in this

demographic status of users. There are some examples of a good stimulus that

can be used for marketers to build trust in consumers such as:

The first method is creating a phone number for customer or as we

called customer care on the packaging and also delivering customer

advocacy program.

Second is on the packaging that showing of how to use and the benefits

of the products. This kind of information describing that the company

concern or care with their consumers and also provide the information

about the side effects that can be happens to consumers after use the

product. The stimulus like this showing that company would like to

establish their brand into good image because the brand does not cover

up the negative effects after use of the product.

Providing a special communication channel or line for consumers who

want to make a complaint or suggestion. In order to create the

impression that the brand very concerned and wanted to meet consumer

needs that not fulfill.

Creating a sales counter or an advisor that can give a suggestion or

explanation face to face with consumers, especially for the brand that

engaged in services industry.

All of the stimulus in above should be describe an attitude of honesty and

sincerity of the brand. This attitude will create consumers trustworthy naturally.

According to Lau and Lee (1990), there are three factors that have an influence

on brand trust. This three factors has a relationship with three entity covered in

the relationship between brands and consumers. The three of factors itself are

brand characteristic, company characteristic, and consumer characteristic. For

the explanation are:

22

Brand characteristic has a very important role in determining the

consumer buying decision to trust a brand. This is caused by the

consumers that make an assessment before they are buying. The

characteristics of brand which associated with the brand trust are

including predictable, competent, and reputable brand.

Company characteristic is behind a brand may also influence the level

of brand trust in consumers. The consumer knowledge about the

company behind the brand of a brand is the initial basic understanding

of consumer about the product‟s brand. These characteristics include the

reputation of a company, company desired motivation and vision, and

for the last but not least is the integrity of a company itself.

Consumer - Brand characteristic is the interplay of the two groups.

Therefore, the characteristics of consumers - brands can effect in the

brand trust. These characteristics include emotional similarity between

the concepts of consumers with the brand personality, interested of the

brand, and have the experience with the brand itself.

2.4. Consumer Buying Decision

According to McDaniel et.al (2006), consumer decision-making process is a five

step process used by consumers when buying goods or services. Those five step

process is shown in figure 2.2 below.

Figure 2.2 Consumer decision-making process

Source: adapted from McDaniel et.al, 2006, p.153, Introduction to Marketing 8th edition

23

According to Kotler (2008), The first stage of the buyer decision process, in

which the consumer recognizes a problem or need is the need recognition. The

need can be triggered by internal stimuli when one of the person‟s normal needs

(hunger,thirst) rises to a level high enough to become a drive. A need can also be

triggered by external stimuli (an advertisement or an information about the

product from friends).

The next step is the information search step. Kotler (2008,p. 139-140) defined the

information search stage as the stage of the buyer decision process in which the

consumer is aroused to search more information; the consumer may simply have

heightened attention or may go into active information research. Consumers can

obtain information from any several sources. These include personal sources

(family, friends, neighbours), commercial sources (advertising, sales people, web

sites), public sources (mass media, consumer-rating organizations, internet

searches), and experiental sources (handling, examining, using the product).

The third step of consumer decision-making process is evaluation of alternatives.

According to Kotler (2008,p. 140), alternative evaluation is the stage of the buyer

decision process in which the consumer uses information to evaluate alternative

brands in the choice set. The consumer arrives at attitudes toward different brands

through some evaluation procedure. How consumer go about evaluating purchase

alternatives depends on the individual consumer and the specific buying situation.

The fourth step is the purchase step. In this step, consumer already choose which

product that he or she will buy. According to Kotler (2008, p.141), there are two

factors that could come between the purchase intention and the purchase

decision. The first factor is the attitudes of others. For example, when a person

give advices to his or her friend to buy a low-priced car, then his or her friend

would reduces the chances to buy a more-expensive car. The second factor is

24

unexpected situational factor. The consumer may form a purchase intention

based on factors such as expected income, expected price, and expected product

benefit. However, unexpected events may change the purchase intention. For

example, the economy might take a turn for the worse.

The last step of the consumer decision-making process is the postpurchase

behavior. According to Kotler (2008, p.141), postpurchase behavior is the stage

of the buyer decision process in which the consumers takes further action after

purchase, based on their satisfaction or dissatisfaction. McDaniel et.al (2006,

p.157-158) stated that when people recognize inconsistency between their values

or opinions and their behavior, they tend to feel an inner tension called cognitive

dissonance. There are many ways to reduce the dissonance both for the

consumers and the marketers. The consumers can justify decision, seek for new

information, avoid contradictory information, or return product. The marketers

can send postpurchase thank you or letter, display product superiority in ads, or

offer guarantees.

2.5. The Effect of Brand Awareness on Consumer Buying

Decision

According to Hoyer & Brown (1990) on the journal entitled “The Impact of

Brand Awareness on Consumer Purchasing Decision: The Mediating Effect of

Perceived Quality and brand Loyalty said that Brand awareness has a big

influence on the election and become the basis of consideration in a product

category. From the journal showing that brand awareness has a significant affect

on the people purchasing decision. Based on the experience of the researcher, the

researcher would like to buy a products that aware. Because when the researcher

aware with the bra24nd, it can be a supporting factor to make a decision for

purchasing.

25

On the journal Cornell Maple Bulletin 105 (2007) about brand awareness from

Tara Gustafson and Brain Chabot said that why brand awareness is important?

Because there are some things more important than invest time in your brand

awareness and also it can play a major role in the consumers purchasing decision.

The reality is when the consumer is more aware of your product and your brand;

they are more likely will buy it again from you.

Moreover on the journal of Brand Awareness Effects on Consumer Decision

Making for a Common, Repeat Purchase Product: A Replication from Emma K.

Macdonald and Byron M. Sharp (2000) said that Brand Awareness has a

significant effect on consumer decision-making with the brand entered the stage

of consideration of the influence and impact of selected brand consideration

stage.

2.6. The Effect of Brand Trust on Consumer Buying Decision

According to the past research by Lau and Lee (1990) they are stated that the

main indicator of the existence of the company is to make consumers believe in

the products and services we offer, buying decision, consumer feel satisfied, and

make them loyal with the product and service itself.

The Highlight of brand trust is that the consumer have a big positive expectation

and believe on the brand. Based on the believe itself, the consumers can decide

whether they would like to take a decision to buy it or not. This condition shows

that brand trust has a big influence on the consumer purchasing decision (Sherriff

T.K. Luk, Leslie S.C. Yip, 2008). Based on the concept above, that shows there is

a theory that brand trust has a big influence on someone to take a decision on

purchasing product and service.

26

CHAPTER III

METHODOLOGY

3.1. Research Method

The researcher used quantitative research to derive the results. According to

Render, Stair, JR, and Mich. Hanna (2009) quantitative analysis is:

“Quantitative Analysis is the scientific approach to managerial decision

making. Whim, emotions, and guesswork are not part of the quantitative analysis

approach”

Quantitative research is the systematic scientific investigation of properties and

phenomena and their relationships. The objective of quantitative research is to

develop and employ mathematical models, theories and/or hypotheses

pertaining to natural phenomena. The process of measurement is central to

quantitative research because it provides the fundamental connection between

empirical observation and mathematical expression of quantitative

relationships. Quantitative research is generally approached using scientific

methods and involves analysis on numerical data. On the other hand, there is a

qualitative analysis. According to Denzin and Lincoln (2005) qualitative

research or method is:

“Qualitative research involves an interpretive and naturalistic approach,

which means that qualitative research study things in their natural settings,

attempting to make sense of or to interpret phenomena in terms of the meanings

people bring to them”

27

Qualitative method is often used with aim to gain understanding of underlying

reasons and motivations, to provide insights into the setting of a problem,

generating idea or hypotheses for later or future research, and the last is to

uncover prevalent trends in thought and opinion. However in this researcher, the

researcher decided to chose quantitative method or research to conduct this

study.

3.2. Research Framework

The research framework started from data collection and constructed by the

researcher. Validity and Reliability tests were done in order to find a valid and

reliable data before it is processed using the multiple regression method. After

gathering the valid and reliable data, the next step is to process and construct the

final questionnaire. When the final questionnaire is done, the researcher will

gather the data by spreading the final questionnaire to the respondents, in this

research the respondents is President University student‟s batch 2012. Then, the

researcher will calculate the data using SPSS Version 20.0 and Microsoft Excels

2007 to find out the relationship between brand awareness and brand trust to

consumer buying decision both simultaneously and partially. The sequences

steps of research framework are as follows:

28

No

Yes

No

Yes

Figure 3.1 Research framework

Source: Self-Construct research framework

Data Collection

Pre-Test Questionnaire

Validity Testing

Reliability Testing

Valid? Rejected

Rejected

Final Questionnaire

Relationship between Brand

Awareness and Brand Trust on

Consumer Buying Decision

Reliable?

29

3.3. Research Time and Place

The research was conducted from 12th

November until 5th

December, 2012 in

President University Cikarang, Bekasi.

3.4. Research Instruments

In this research, the researcher used primary data as the source and questionnaire

as its instrument. According to Donald Currie (2005) primary data definition is

“data that were previously unknown and which have been obtained directly by

the researcher for a particular research object” on the other side Malhotra and

Peterson (2010) define primary data as “data originated by the researcher for the

specific purpose of addressing the research problem”. The questions of the

questionnaire will represent each of variables, which are based on the indicator

dimensions of psychological factors. The questionnaire was conducted in

Indonesian language to make it easier for the respondents. The pre-test

questionnaire was distributed to 30 respondents and the final questionnaire was

distributed to 90 respondents.

The researcher used Five-Likert Scale to score the questionnaire. The Likert

Scale, developed by Rensis Likert, is the most frequently used variation of the

summated rating scale. Summated rating scale consists of statement that

expresses either a favorable or an unfavorable attitude toward object of interest.

The research used the 1-5 scale which is shown in the table 3.1. The respondents

should give checklist in one of the grading scale, where the 1-5 grading scale

could be defined as:

30

Table 3.1 Likert Scale

Scale Description

1 Sangat tidak setuju (Strongly Disagree)

2 Tidak setuju (Disagree)

3 Netral (Neutral)

4 Setuju (Agree)

5 Sangat setuju (Strongly Agree)

Source: http://www.socialresearchmethods.net

3.4.1. Data Collection

1. Respondent Profile

The criteria of the respondents are as follows:

1. Students of President University batch 2012

2. Students who know Forum Jual Beli (FJB) Kaskus.

2. Sampling Design

The sample size or number sample of respondent that researcher have to take is

an important issue in this research because the researcher used quantitative

analysis. According to Roscoe stated by Sekaran (2010) that “the determination

of sample size number should be among 30 to 500 elements”, therefore in this

research, the researcher used the Slovin method to determine the minimum

sample for this research, where:

31

N= 750; e= 10%

𝑛 =𝑁

1 + 𝑁(𝑒2)

𝑛 =750

1 + 750 0.12

𝑛 = 88.23

𝑛 = 90

The number of N is total number of students batch 2012 which was derived from

the academic department of President University in November 2012.

3.5. Statistical Treatment

3.5.1. Validity Testing by Using SPSS

Validity testing shows how far the instrument (in this research is questionnaire)

could measure questions in the questionnaire in order to determine the exact

question which should be asked to the respondents. In this research, the

researcher used method of successive interval to transform the ordinal data from

questionnaire to the interval data.

The Pearson‟s correlation coefficient was used to measure the validity of

variables in this research. The coefficient of correlation of Pearson Product

Moment can be based on the actual values of X and Y. The equation is as

follows:

32

The Formula is:

𝑟 =𝑁 𝑋𝑌 − 𝑋 ( 𝑌)

𝑁 𝑥2 − ( 𝑋)2 𝑁 𝑌2 − ( 𝑌)

2

Figure 3.2 Pearson’s correlation to measure validity

Source: Berenson, Levine & Timothy C. Krehbiel (2011)

Where:

n = the number of paired observations

Σ X = the X variable summed

Σ Y = the Y variable summed

Σ X2 = the X variable squared and the squares summed

(Σ X)2 = the X variable summed and the sum squared

Σ Y2 = the Y variable squared and the squared summed

(Σ Y)2 = the Y variable summed and the sum squared

Σ XY = the sum of the product of X and Y

According to Sugiyono (2006), the minimum standard in order to fulfill validity

test is when r = 0.3 or more than 0.3, meaning the statement can be used for the

next process. While if r < 0.3 is categorized as invalid and the statement cannot

be used for the next process.

33

3.5.2. Reliability Testing by Using SPSS

According to (Cooper & Schindler, 2006, pp352), “reliability is a characteristic

of measurement concerned with accuracy, precision, and consistency”.

Reliability test is used to measure how far the measurement result is relatively

consistence if the measurement is done for the second time or more. In this

research, the researcher used Cronbach Alpha formula. The formula for cronbach

alpha is:

𝛼 =𝐾. 𝑟

1 + 𝐾 − 1 𝑟

Figure 3.3 Cronbach Alpha

Source: http://www.gwu.edu/

Where:

𝛼 = instrument reliability‟s coefficient

𝑟 = mean correlation coefficient between variables

𝑘 = number of questions

3.6. Multiple Regression Method

In this research, the researcher used multiple regressions method to find out brand

awareness and brand trust that can affect the consumer buying decision.

According to Stair, JR and Hanna, (2009), “multiple regression models is a

practical extension of simple regression in which it allow user to build a model

with several independent variables”. Multiple regressions is used as a

quantitative method and computed by SPSS. The general purpose of multiple

34

regressions is to learn more about the relationship between several independent or

predictor variable and a dependent or criterion variable.

In this research there are 2 main independent variables in this research with each

indicator of main independent variable being an independent variable, while the

formula for multiple regressions:

𝒀𝟏 = 𝜷𝟎 + 𝜷𝟏𝑿𝟏.𝟏 + 𝜷𝟐𝑿𝟏.𝟐 + 𝜷𝟑𝑿𝟏.𝟑+∈,

𝒀𝟐 = 𝜷𝟎 + 𝜷𝟒𝑿𝟐.𝟏 + 𝜷𝟓𝑿𝟐.𝟐+∈,

where:

Y1 = Consumer buying decision as dependent variable toward brand awareness

Y2 = Consumer buying decision as dependent variable toward brand trust

X1.1 = Top of mind as first independent factor of brand awareness

X1.2 = Brand recall as second independent factor of brand awareness

X1.3 = Brand recognition as third independent factor of brand awareness

X2.1 = Reliability as first independent factor of brand trust

X2.2 = Intentionality as second independent factor of brand trust

𝛽0 = Intercept (value Y when X = 0)

𝛽1 = Coefficient of X1.1





∈ = Random error

The result of the regression model is to prove whether or not the indicators of

independent variables which are Brand Awareness and Brand Trust have a

35

relationship with Consumer Buying Decision as the dependent variable. There are

four conditions that can be seen from the result of the regression analysis such as:

1. Coefficient Correlation Analysis (R)

This analysis is used to find out the whole correlation between 2 or more

independent variables to the dependent variable. It depends on the value, if

the value of R is 0 – 1 it means if the result is close to 1, then the correlation

between the independent variables and the dependent variable is stronger.

Table 3.2 Interpretation of R value

Source: adapted from Sugiono, 2007, p. 250

The Pearson‟s correlation coefficient is used to measure the correlations

between the variables of the research. The coefficient of correlation of

Pearson Product Moment can be based on actual values of X and Y. The

formula is:

𝑟 =𝑛 ( 𝑋𝑌) − ( 𝑋) ( 𝑌)

𝑛 𝑥2 − ( 𝑋)2 (𝑛 𝑦2 − ( 𝑌)2)

Figure 3.4 Mean Correlation Coefficient between Variables

Source: http://www.statisticssolutions.com/

36

Where:

n = the number of paired observations

𝑋 = the X variable summed

𝑌 = the Y variable summed

𝑋2 = the X variable squared and the squared summed

( 𝑋2) = the X variable summed and the sum squared

𝑌2 = the Y variable squared and the squared summed

( 𝑌2) = the Y variable summed and the sum squared

𝑋𝑌 = the sum of the product X and Y

2. Coefficient of Determination Analysis ( Adjusted R Square)

This analysis is used to find out the percentage how much the influence of

independent variables to the dependent variable in this multiple regression

model.

3. Coefficient Simultaneously Correlation Analysis (F – Test)

This analysis is used to find out the simultaneous influence between the

independent variables and the dependent variable. The significance level (α)

used is 0.05. If the value of significance level in ANOVA table is below 0.05,

means the independent variable is highly significant to the dependent

variable. The value of calculated F in ANOVA table should be greater than

the F-table. Table F is provided in the attachment. To read the table, we have

to find the value for numerator degree of freedom (df1) and denominatior

degree of freedom (df2). Then, the value between the calculated F and the F

table value must be compared. If the value of the calculated F is greater than

the F table value means the independent variables have a simultaneous

influence on the dependent variable.

37

4. Coefficient Partial Correlation Analysis (T-Test)

T test is used to determine the partial relationship of each independent

variable toward dependent variable. The level of significance α is 0.05. Ho is

rejected if t test value lower than α = 0.05 and Ho is accepted if t test value

greater than α = 0.05.

H0: β1 = 0, if significant T > 0.05, accept H0

Ha: β1 ≠ 0, if significant T < 0.05, reject H0

3.7. Classical Assumption Test

A multiple regression model has to be tested with some assumptions. In classical

assumption test, there are 3 assumptions that could be used to find out if there is

any error exists in the data. The 3 assumptions are normality assumption,

multicollinearity assumption, and heteroscedasticity assumption.

3.7.1. Normality Assumption

The purpose of this assumption is to tested the variable dependent and the

independent variable are having a normal distribution or not in a regression model.

A regression model is good if the distribution is normal or approaching normal

(Santoso, 2000, p. 212-213). The normality assumption could be analyzed by

using the Normal P-P Plot of Regression Standardized Residual graphic and

Kolomogorov-Smirnov method. In this research, the researcher used the Normal

P-Plot of Regression Standardized Residual graphic. The indicators of normality

assumption could be based on:

1. If the spread of the data is around the diagonal line, and keeping up with the

diagonal line, then the regression is meet the normality assumption.

38

2. If the spread of the data is far from the diagonal line and/or not keeping up

with the diagonal line, then the regression is not meeting the normality

assumption.

3.7.2. Multicollinearity Assumption

This assumption is used to find out any correlation between the independent

variables in this regression. If there is any correlations, there is multicolinearity

exist (Santoso, 2000, p. 203, 2010)

Multicollinearity is a condition when there is a linear relationship or high

correlation between each independent variable in a regression model (Ariyoso,

2009, cited in http://statistik4life.blogspot.com/). The indication of the

multicollinearity existence is as follows:

1. A significant score of R2, but the significance level of each variable is too low.

2. Any little changes in the data could affect a change of significance in the

variables.

3. The value of coefficient variable is inappropriate with the hypothesis.

According to Santoso (2000), the indicators of multicollinearity assumption could

be based on:

1. The value of VIF is around 1 which means the regression does not have a

multicollinearity problem.

2. The value of Tolerance is close to 1 which means the regression does not

have a multicollinearity problem.

39

3.7.3. Heteroscedasticity Assumption

This assumption is used to find out if there are inequitably variants from residual

in one observation to another observation. If the variants from residual in one

observation to another observation are permanent, then Homoscedasticity exists.

If the variants from residual in one observation to another observation are

inequitable, then Heteroscedasticity exists. A good regression model is when

there is no Heteroscedasticity exist (Santoso, 2000, p. 208-209, 2010). According

to Santoso (2000), the indicators of heteroscedasticity assumption could be based

on:

1. If there is any clear pattern consist of points which create a specific well-

ordered pattern, then there is heteroscedasticity exists.

2. If there is no well-ordered pattern, the points are spread between 0 in Y axis,

and then there is no heteroscedasticity exist.

3.8. Testing the Hypothesis

In this research, the hypothesis will be as follow:

Null Hypothesis (Ho1) Brand awareness has no influence towards the


Alternative Hypothesis (Ha1) Brand awareness has an influence toward the


Null Hypothesis (Ho2) Brand trust has no effect on consumer buying

decision.

Alternative Hypothesis (Ha2) Brand trust has an influence on consumer

buying decision.

Null Hypothesis (Ho3) There is no correlation between brand awareness and

brand trust.

40

Alternative Hypothesis (Ha3) There is a correlation between brand awareness

and brand trust.

3.9. Limitations

Due to several reasons related to this study, the researcher had some limitations

such us:

1. The population of the research was restricted to President University student

batch 2012.

2. The researcher gave questionnaires to the students who had known about FJB

(Forum Jual Beli) Kaskus.

3. Although there are a lot of theories which can affect consumer buying

decision, the researcher only used brand awareness and brand trust. The

researcher considers that the theories of brand awareness and brand trust are

appropriate for this research.

3.10. Data Analysis

The researcher used Microsoft Excel 2007 and SPSS (Statistical Package for

Social Science) version 20.0 to process statistical data for questionnaire.

1. Microsoft Excel 2007

In this research, Microsoft Excel 2007 software was mostly used to calculate

the questionnaire.

41

2. SPSS Version 20.0

This research used SPSS Version 20.0 to input the respondent‟s answers,

testing the instrument validity and reliability, regression, normality,

multicolinearity, and heteroskedasticity assumption and present respondent‟s

answers.

42

CHAPTER IV

ANALYSIS OF DATA AND INTERPRETATION OF

RESULT

4.1. Data Result of Validity and Reliability Testing

The researcher used the method of successive interval to transform the ordinal

data to interval data. Then the researcher used SPSS version 20.0 to test the

validity and reliability of the questionnaire. The pre-test questionnaire was spread

to 30 respondents and contains 29 questions. Based on the corrected item-total

correction table or r table (see r table in appendices), if we used 30 respondents,

the mean correlation coefficient between variables or r = 0.31. It means if the

result of corrected item-total correction is below 0.31, it will not use or rejected.

If the corrected item-total correction is above 0.31, the question will be use as a

part of the questionnaire.

Based on table 4.1 below, it shows the result of validity test. The data shows

there are 5 invalid items and removed from the questionnaire or rejected. Those

variables are variable 3, 10, 13, 14 and 27. Those invalid items are determined

based on the analysis result from SPSS version 20.0 and corrected item-total

correlation compared to r table.

Based on table 4.2 below, it shows the valid items in the questionnaire that will

use as parts of the questionnaire. There are 24 valid variables; it represents the

three factors such as brand awareness, brand trust and consumer buying decision.

43

Table 4.1 Result of Validity Test

Source: Data result of validity testing

44

Table 4.2 Valid Questions

Source: Data result of validity testing

45

Table 4.3 Result of Reliability Test

Source: Data result of reliability testing

46

Reliability test is used to find out the items in the questionnaire whether it is

consistent or not when the item is used. The researcher used SPSS version 20.0

for the computation, and Cronbach Alpha method to measure the reliability of the

items in the questionnaire. Note that a reliability coefficient of .60 or higher is

considered "acceptable” which means it could be used to continue the study.

The table 4.3 above shows the result of the reliability testing in this study. It

shows that the cronbach‟s alpha is higher than 0.60. The cronbach alpha for the

questionnaire is 0.857 and it means each of the variables and all of the items in

the questionnaire are reliable and it can be used to further study.

4.2. Multiple Regressions Analysis

Brand Awareness

Table 4.4 Unstandardized coefficients result

Coefficientsa

Model Unstandardized Coefficients

B Std. Error

1

(Constant) 1.729 .335

TOPOFMIND .047 .068

RECALL .312 .068

RECOGNITION .172 .078

a. Dependent Variable: BUYINGDECISION

Source: Data result of unstandardized coefficients from SPSS 20.0

The table 4.4 above shows the result from coefficient (a) or 𝜷𝟎 that computed in

SPSS version 20.0. The regression equation is:

47

𝒀 = 𝜷𝟎 + 𝜷𝟏𝑿𝟏.𝟏 + 𝜷𝟐𝑿𝟏.𝟐 + 𝜷𝟑𝑿𝟏.𝟑

𝒀 = 𝟏.𝟕𝟐𝟗 + 𝟎. 𝟎𝟒𝟕 𝑿𝟏.𝟏 + 𝟎. 𝟑𝟏𝟐 𝑿𝟏.𝟐 + 𝟎. 𝟏𝟕𝟐𝑿𝟏.𝟑

Where,

Y = Consumer Buying Decision

X1.1 = Top of Mind as indicator of Brand Awareness

X1.2 = Brand Recall as indicator of Brand Awarenes

X1.3 = Brand Recognition as indicator of Brand Awareness

The equation of the regression above could be explained as:

1. Regression coefficient of Top of Mind (X1.1) as indicator variable of Brand

Awareness is 0.047 which means if the other indicator of independent variable is

constant and Top of Mind increases by 1%, the Consumer Buying Decision will

increase by 4.7%. If the coefficient is positive meaning there is a positive

correlation between Top of Mind and the Consumer Buying Decision. So when

the Consumer Buying Decision increases, the Top of Mind will also increase.

2. Regression coefficient of Brand Recall (X1.2) as indicator variable of Brand

Awareness is 0.312 which means if the other indicator of independent variable is

constant and Brand Recall increases by 1%, the Consumer Buying Decision will

increase by 31.2%. If the coefficient is positive meaning there is a positive

correlation between Brand Recall and the Consumer Buying Decision. So when

the Consumer Buying Decision increases, the Brand Recall will also increase.

3. Regression coefficient of Brand Recognition (X1.3) as indicator variable of

Brand Awareness is 0.172 which means if the other independent variable is

constant and Brand Recognition increases by 1%, the Consumer Buying

Decision will also increase by 17.2%. If the coefficient is positive meaning there

48

is a positive correlation between Brand Recognition and the Consumer Buying

Decision. When the Consumer Buying Decision increases, the Brand

Recognition will also increase.

Brand Trust

Table 4.5 Unstandardized coefficients result

Coefficientsa

Model Unstandardized Coefficients

B Std. Error

1

(Constant) 2.108 .257

RELIABILITY .255 .094

INTENTIONALITY .192 .092


Source: Data result of unstandardized coefficients from SPSS 20.0

The table 4.5 above shows the result from coefficient (a) or 𝜷𝟎 that computed in

SPSS version 20.0. The regression equation is:

𝒀 = 𝜷𝟎 + 𝜷𝟒𝑿𝟐.𝟏 + 𝜷𝟓𝑿𝟐.𝟐

𝒀 = 𝟐. 𝟏𝟎𝟖 + 𝟎.𝟐𝟓𝟓 𝑿𝟐.𝟏 + 𝟎.𝟏𝟗𝟐 𝑿𝟐.𝟐

Where,

Y = Consumer Buying Decision

X2.1 = Reliability as indicator of Brand Trust

X2.2 = Intentionality as indicator of Brand Trust

The equation of the regression above could be explained as:

49

1. Regression coefficient of Reliability (X2.1) as an indicator variable of Brand

Trust is 0.255 which means, if the other indicator of independent variable is

constant and Reliability increases by 1%, the Consumer Buying Decision will

increase 25.5%. If the coefficient is positive meaning there is a positive

correlation between Reliability and the Consumer Buying Decision. So when the

Consumer Buying Decision increases, the Reliability will also increase.

2. Regression coefficient of Intentionality (X2.2) as indicator variable of Brand

Trust is 0.192 which means if the other indicator of independent variable is

constant and Intentionality increases by 1%, the Consumer Buying Decision will

increase 19.2%. If the coefficient is positive, meaning there is a positive

correlation between Intentionality and the Consumer Buying Decision. So when

the Consumer Buying Decision increases, the Intentionality will also increase.

4.2.1. Descriptive Statistics

Brand Awareness

Table 4.6 Descriptive analysis of variables

Source: Data result of descriptive analysis from SPSS 20.0

Descriptive Statistics

Mean Std. Deviation N

BUYINGDECISION 3.7544 .44940 90

TOPOFMIND 3.7556 .64923 90

RECALL 3.8167 .62576 90

RECOGNITION 3.8409 .56822 90

50

Brand Trust

Table 4.7 Descriptive analysis of variables

Descriptive Statistics

Mean Std. Deviation N

BUYINGDECISION 3.7544 .44940 90

RELIABILITY 3.5929 .61575 90

INTENTIONALITY 3.8167 .62576 90

Source: Data result of descriptive analysis from SPSS 20.0

From the table 4.6 and 4.7 above, it shows the mean and standard deviation for

each indicator of independent variable and also the total of population in this

research is 90 respondents.

Brand Awareness

Table 4.8 Model summary result

Model Summaryb

Model R R Square Adjusted R

Square

Std. Error of the

Estimate

Durbin-Watson

1 .573a .328 .305 .37472 1.579

a. Predictors: (Constant), RECOGNITION, RECALL, TOPOFMIND

b. Dependent Variable: BUYINGDECISION

Source: Data result of model summary from SPSS 20.0

51

Brand Trust

Table 4.9 Model summary result

Model Summaryb

Model R R Square Adjusted R

Square

Std. Error of the

Estimate

Durbin-Watson

1 .574a .329 .314 .37232 1.399

a. Predictors: (Constant), INTENTIONALITY, RELIABILITY

b. Dependent Variable: BUYINGDECISION

Source: Data result of model summary from SPSS 20.0

4.2.2. Coefficient Correlation Analysis (R)

The table 4.8 above shows the result for model summary. Based on the table

above, it mentioned the R value is 0.573 which means there are moderate

relationship between Top of Mind, Brand Recall, and Brand Recognition.

While on the table 4.9 above shows the result for model summary. Based on the

table above, it mentioned the R value is 0.574 which means there are moderate

relationship between Reliability and Intentionally.

Table 4.10 Pearson correlations result of Brand Awareness

Correlations

BUYINGDE

CISION

TOPOFMIND RECALL RECOGNITION

Pearson

Correlation

BUYINGDECISION 1.000 .281 .522 .380

TOPOFMIND .281 1.000 .290 .405

RECALL .522 .290 1.000 .313

RECOGNITION .380 .405 .313 1.000

Sig. (1- BUYINGDECISION . .004 .000 .000

52

tailed)

TOPOFMIND .004 . .003 .000

RECALL .000 .003 . .001

RECOGNITION .000 .000 .001 .

N

BUYINGDECISION 90 90 90 90

TOPOFMIND 90 90 90 90

RECALL 90 90 90 90

RECOGNITION 90 90 90 90

Source: Data result of Pearson correlations from SPSS 20.0

From table 4.10 above, it shows the strength of relationship between the

indicators of independent variables and dependent variables. First is about the

correlation between top of mind and consumer buying decision is 0.281.

Although top of mind has the lowest value of correlations, it shows top of mind

and consumer buying decision has a high and positive correlation.

On the other hand there is a correlation between brand recall and consumer

buying decision with the score is 0.522. It means brand recall has a positive and

high influence on the consumer buying decision; it also shows that brand recall

has the highest correlation with the consumer buying decision.

The correlation between brand recognition and consumer buying decision is high

and positive. It shows in the table above the correlation value between brand

recognition and consumer buying decision is 0.380.

53

Table 4.11 Pearson correlations result of Brand Trust

Correlations

BUYINGDECISIO

N

RELIABILITY INTENTIONALITY

Pearson

Correlation

BUYINGDECISION 1.000 .544 .522

RELIABILITY .544 1.000 .730

INTENTIONALITY .522 .730 1.000

Sig. (1-tailed)

BUYINGDECISION . .000 .000

RELIABILITY .000 . .000

INTENTIONALITY .000 .000 .

N

BUYINGDECISION 90 90 90

RELIABILITY 90 90 90

INTENTIONALITY 90 90 90


From table 4.11 above, it shows the strength of relationship between the

indicators of independent variables and dependent variables. The correlation

between reliability and the consumer buying decision is 0.544. It means

reliability and consumer buying decision has a positive and high correlation and

also shows that reliability is the highest correlation with the consumer buying

decision.

On the other hand there is a correlation between intentionality and consumer

buying decision with the score is 0.522. Although intentionality has the lowest

value of correlations, it shows that intentionality and consumer buying decision

have a high and positive correlation.

54

Table 4.12 Pearson correlations result of Brand Awareness and Brand Trust

Correlations

BRANDAWARENESS BRANDTRUST

Pearson Correlation

BRANDAWARENESS 1.000 .737

BRANDTRUST .737 1.000

Sig. (1-tailed)

BRANDAWARENESS . .000

BRANDTRUST .000 .

N

BRANDAWARENESS 90 90

BRANDTRUST 90 90


From table 4.12 above, it shows the strength of relationship between two

independent variables. The correlation between brand awareness and brand trust

is 0.737. It means brand awareness and brand trust have a positive and high

correlation.

4.2.3. Coefficient of Determinant Analysis (Adjusted R Square)

The table 4.8 above shows that the value of adjusted R square is 0.305. It means

Top of Mind, Brand Recall and Brand Recognition as indicators of Brand

Awareness may explain 30.5% of the Consumer Buying Decision while the rests

may be explained by some other factors which are not mentioned in this research.

Based on table 4.9 above, it shows the value of adjusted R square is 0.314. It

means the Reliability and Intentionality as indicators of Brand Trust may explain

31.4% of Consumer Buying Decision while the rests may explained by some

other factors which are not mentioned in this research.

55

4.2.4 F – Test

Table 4.13 f - test result of Brand Awareness

ANOVAa

Model Sum of Squares Df Mean Square F Sig.

1

Regression 5.898 3 1.966 14.002 .000b

Residual 12.076 86 .140

Total 17.974 89


b. Predictors: (Constant), RECOGNITION, RECALL, TOPOFMIND

Source: Data result of F - test result from SPSS 20.0

The table 4.13 above shows the significance value for this regression model is

0.000 and it is below the significant level which is 0.05. It means that the

independent variables of brand awareness which are top of mind, brand recall,

and brand recognition are highly significant and have a simultaneous influence on

the consumer buying decision.

Table 4.14 f - test result of Brand Trust

ANOVAa

Model Sum of Squares df Mean Square F Sig.

1

Regression 5.914 2 2.957 21.331 .000b

Residual 12.060 87 .139

Total 17.974 89


b. Predictors: (Constant), INTENTIONALITY, RELIABILITY

Source: Data result of F - test result from SPSS 20.0

56

The table 4.14 above shows the significance value for this regression model is

0.000 and it is below the significant level which is 0.05. It means the independent

variables of brand trust which are the reliability and intentionality are highly

significant and have a simultaneous influence on the consumer buying decision

4.2.5. T – Test

Table 4.15 t –test result of Brand Awareness

Coefficientsa

Model t Sig.

1

(Constant) 5.165 .000

TOPOFMIND .687 .494

RECALL 4.583 .000

RECOGNITION 2.191 .031


Source: Data result of t-test from SPSS 20.0

The table 4.15 above shows the result of t-test. Based on the calculation, the

significant value for Top of Mind is 0.494. It shows the significant value for Top

of Mind is above the significant level (α) which is 0.05. It means Top of Mind

has no significant influence in partial on consumer buying decision or Ho

accepted.

Based on the result of t – test 4.15 above, the significant value for Brand Recall is

0.000. It shows the significant value is below the significant level (α) which is

0.05, and it means Brand Recall has a significant influence in partial on the

consumer buying decision or Ha accepted. The table shows that Brand Recall is

the highest significant influence in brand awareness variable on consumer buying

decision.

57

The significant value for Brand Recognition is 0.031. It shows that the significant

value is below the significant level (α) which is 0.05, and it means Brand

Recognition has significance influence in partial to the consumer buying decision

or Ha accepted.

Table 4.16 t –test result of Brand Trust

Coefficientsa

Model t Sig.

1

(Constant) 8.213 .000

RELIABILITY 2.716 .008

INTENTIONALITY 2.077 .041


Source: Data result of t-test from SPSS 20.0

The table 4.16 above shows the result of t-test. Based on the calculation, the

significant value for Reliability is 0.008. It shows the significant value for

Reliability is below the significant level (α) which is 0.05. It means Reliability

has a significant influence in partial on consumer buying decision or Ha accepted.

The significant value for Intentionality is 0.041. It shows the significant value is

below the significant level (α) which is 0.05, and it means Intentionality has a

significant influence in partial on the consumer buying decision or Ha accepted.

58

4.3. Classical Assumption Test

4.3.1. Normality Assumption

Based on the figure 4.1 below, it shows the normality distribution of the study.

The spread of the data is around the diagonal line and keeping up with the

diagonal line, then the regression is met the normality assumption.

Figure 4.1 Result of Normality Test on Brand Awareness

Source: Data result of normality testing

59

Based on the figure 4.2 below, it shows the normality distribution of the study.

The spread of the data is around the diagonal line and keeping up with the

diagonal line, and then the regression has met the normality assumption.

Figure 4.2 Result of Normality Test on Brand Trust

Source: Data result of normality testing

60

4.3.2. Multicollinearity Assumption

Based on the data below on table 4.16 and 4.17, it shows the result of

multicollinearity testing. The value of VIF for all of the indicator independent

variables is greater than 1 or under 5. It means the regression model does not

have a multicollinearity problem.

Table 4.17 Result of Multicollinearity Test on Brand Awareness

Coefficientsa

Model Collinearity Statistics

Tolerance VIF

1

TOPOFMIND .806 1.240

RECALL .871 1.149

RECOGNITION .794 1.259


Source: Data result of multicollinearity testing

Table 4.18 Result of Multicollinearity Test on Brand Trust

Coefficientsa

Model Collinearity Statistics

Tolerance VIF

1

RELIABILITY .467 2.141

INTENTIONALITY .467 2.141


Source: Data result of multicollinearity testing

61

4.3.3. Heteroscedasticity

Figure 4.3 Result of Heteroscedasticity Test on Brand Awareness

Source: Data result of heteroscedasticity testing

The figure 4.3 above shows that the spread of the data does not form a specific

pattern. Also, the points are spread between 0 in Y axis hence, there is no

heteroscedasticity presents in the data.

62

Figure 4.4 Result of Heteroscedasticity Test on Brand Trust

Source: Data result of heteroscedasticity testing

The figure 4.4 above shows that the spread of the data does not form a specific

pattern. Also, the dots are spread between 0 in Y axis hence, there is no

heteroscedasticity presents in the data.

63

CHAPTER V

CONCLUSION AND RECOMMENDATION

5.1. Conclusions

The objective of this research is to find out the relationship between the brand

awareness and brand trust towards consumer buying decision both

simultaneously and partially. Below are the results:

1. According to the result, all the indicators of Brand Awareness based on the

Adjusted R Square have an influence on Consumer Buying Decision which is

30.5% and based on the result F-test, Brand Awareness have .000a significance

value. While on Brand Trust side, Adjusted R Square has an influence on

Consumer Buying Decision which is 31.4% and according to F-test result, Brand

Trust has .000a significance value on Consumer Buying Decision.

2. Brand Recall and Brand Recognition as two indicators of Brand Awareness

and also the reliability and intentionality as two indicators of Brand Trust may

partially influence the Consumer Buying Decision. Meanwhile, only Top of

Mind as an indicator of Brand Awareness may not partially influence Consumer

Buying Decision.

3. Brand Awareness and Brand Trust as two independent variables have a strong

relationship. According to Pearson‟s result the correlation between Brand

Awareness and Brand Trust is 0.737. It means Brand Awareness and Brand

Trust has a positive and high correlation.

64

5.2. Recommendation

5.2.1. Recommendation for the Organization

Based on the findings in this research, the Online Shop corporate, in this case

Kaskus has to give more attention on brand awareness and brand trust issues

especially in the field of consumer buying decision. It may give additional

information to Kaskus about the market. The researcher suggests Kaskus to do

market research and analyze the competitors‟ superiority which exist in the

market, the price, and also the promotional tools that the competitors use to gain

more consumers.

5.2.2. Recommendation for Future Research

Some recommendations for future research are to add more variables which can

influence the Consumer Buying Decision. There are a lot of factors that could

influence Consumer Buying Decision, not only from the Brand Awareness and

Brand Trust. The examples of suggested variables are Marketing Mix, Social

Factors, and Personal Factors. The researcher hopes that by adding more

variables in the future research, the findings will be more accurate and reliable.

65

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http://www.cornellmaple.info

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http://www.gwu.edu/~gsehdtec/Research-

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http://www.cornellmaple.info/

http://www.gwu.edu/~gsehdtec/Research-Services/PDF/CronbachsAlpha.pdf

http://www.gwu.edu/~gsehdtec/Research-Services/PDF/CronbachsAlpha.pdf

68

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http://searchcio.techtarget.com/definition/e-commerce

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http://the-marketeers.com/archives/survey-markplus-insight-majalah-

marketeers-pengguna-internet-di-indonesia-55-juta-pengguna-

mobile-internet-29-juta.html

http://blog.nielsen.com/nielsenwire/consumer/winning-the-hearts-of-

indonesian-consumers/

http:// www.galeriukm.com

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http://www.techinasia.com

http://www.kaskus.co.id/thread/50876c72582acf1c26000007/masuka

n-untuk-performance-new-kaskus/1

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69

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70

APPENDICIES

1. Pre-Test Questionnaire

Mohon dijawab pertanyaan di bawah ini dengan mengisi ceklist (V) pada angka yang paling sesuai

dengan penilaian anda tentang Forum Jual Beli (FJB) Kaskus yang pernah anda kunjungi ketika ingin

mencari informasi tentang barang atau jasa yang dibutuhkan.

Terima kasih atas waktu dan partisipasinya

Skala:

1: Sangat tidak setuju

2: Tidak setuju

3: Netral

4: Setuju

5: Sangat setuju

Brand

Awareness 1 2 3 4 5

No Pertanyaan

1 Situs Forum Jual Beli (FJB) Kaskus sangat terkenal di online

shop industri

2 Situs website FJB Kaskus mudah di ingat oleh pengguna online

shop kebanyakan

3 Website Kaskus adalah situs komunitas terbesar di Indonesia

4 Saya mengetahui kaskus sebagai situs berbagi cerita atau

forum komunitas

5 Saya mengetahui website Kaskus sebagai situs jual beli yang

memiliki reputasi baik

6

Anda lebih mengenali FJB Kaskus dibandingakan website

sejenis lainnya

7

Ketika anda akan membeli produk atau jasa di internet, FJB

kaskus sebagai salah satu alternatif pilihan

8 FJB kaskus memiliki keunikan tersendiri di bandingakan situs

jual beli online lainnya

71

9 Apakah FJB kaskus menjadi pilihan pertama saat anda mencari

barang dan jasa di internet

10

Apakah anda tidak mengenali sama sekali Forum Jual Beli (FJB)

Kaskus

Brand Trust 1 2 3 4 5

No Pertanyaan

11 Berbelanja di Kaskus menjamin kepuasaan saya

12 Berbelanja di Kaskus dapat dipercaya

13 Selama berbelanja di kaskus saya tidak pernah kecewa

14 FJB Kaskus memberikan informasi lebih ketika saya berbelanja

di website tersebut

15 FJB Kaskus telah berhasil mendapatkan kepercayaan anda

16 FJB Kaskus dapat diandalkan

17 FJB Kaskus dapat direkomendasikan kepada orang lain

18 Saya akan melakukan pembelian kembali di FJB Kaskus

19

Saya memilih berbelanja di salah satu lapak FJB Kaskus dilihat

dari segi reputasi, testimonial, dan catatan hitam

Purchasing

Decision 1 2 3 4 5

No Pertanyaan

20 Saya membeli barang atau jasa di FJB Kaskus karena sesuai

dengan kebutuhan

21 Saya memilih FJB Kaskus karena keanekaragaman barang dan

jasa didalamnya

22

Saya memilih FJB Kaskus karena direkomendasikan oleh

teman atau keluarga

23 Saya memilih FJB Kaskus karena adanya fasilitas rekening

bersama

24 Saya mencari informasi tentang barang atau jasa yang akan

dibeli di FJB Kaskus

72

25 Harga barang atau jasa yang di tawarkan di FJB Kaskus lebih

murah dibandingkan website lainnya

26

Kepercayaan terhadap kualitas dari barang atau jasa yang

ditawarkan di FJB Kaskus membuat anda terus melakukan

pembelian pada FJB Kaskus

27

Anda melakukan pembelian pada FJB Kaskus karena telah

menjadi alternative terakhir

28

Anda merasa puas terhadap barang dan jasa yang telah anda

beli dari FJB Kaskus

29

Anda bersedia merekomendasikan FJB Kaskus kepada

keluarga, teman, dan orang lain di sekitarnya

73

2. Questionnaire

Respondent Data

Gender:

Mohon dijawab pertanyaan di bawah ini dengan mengisi ceklist (V) pada angka yang paling sesuai

dengan penilaian anda tentang Forum Jual Beli (FJB) Kaskus yang pernah anda kunjungi ketika ingin

mencari informasi tentang barang atau jasa yang dibutuhkan.

Terima kasih atas waktu dan partisipasinya.

Skala:

1: Sangat tidak setuju

2: Tidak setuju

3: Netral

4: Setuju

5: Sangat setuju

Brand

Awareness 1 2 3 4 5

No Pertanyaan

Top of Mind

1 Situs Forum Jual Beli (FJB) Kaskus sangat terkenal di online

shop industri.

2 Situs website FJB Kaskus mudah di ingat oleh pengguna online

shop kebanyakan.

3 FJB Kaskus menjadi pilihan pertama saat saya mencari barang

dan jasa di internet.

Brand Recall

4 Saya lebih mengenali FJB Kaskus dibandingkan website

sejenis lainnya.

5 Ketika saya akan membeli barang atau jasa di internet, FJB

Kaskus sebagai salah satu alternatif pilihan.

Brand Recognition

6 Saya mengetahui Kaskus sebagai situs berbagi cerita atau

forum komunitas.

7

FJB Kaskus memiliki keunikan tersendiri dibandingkan situs

jual beli online lainnya.

8 Saya mengetahui website FJB Kaskus sebagai situs jual beli

yang memiliki reputasi baik.

74

Brand Trust 1 2 3 4 5

No Pertanyaan

Reliability

9 Berbelanja di Kaskus menjamin kepuasaan saya.

10 Berbelanja di Kaskus dapat dipercaya.

11 Saya memilih berbelanja di salah satu lapak FJB Kaskus dilihat

dari segi reputasi, testimonial, dan catatan hitam.

Intention

12 FJB Kaskus telah berhasil mendapatkan kepercayaan anda.

13 FJB Kaskus dapat diandalkan.

14 FJB Kaskus dapat direkomendasikan kepada orang lain.

15 Saya akan melakukan pembelian kembali di FJB Kaskus.

Purchasing

Decision 1 2 3 4 5

No Pertanyaan

Need Recognition

16 Saya membeli barang atau jasa di FJB Kaskus karena sesuai

dengan kebutuhan.

17 Saya memilih FJB Kaskus karena keanekaragaman barang dan

jasa didalamnya.

Information Search

18 Saya memilih FJB Kaskus karena direkomendasikan oleh

teman atau keluarga.

19 Saya mencari informasi tentang barang atau jasa yang akan

dibeli di FJB Kaskus.

Evaluation of Alternative

20 Saya memilih FJB Kaskus karena adanya fasilitas rekening

bersama.

21 Harga barang atau jasa yang di tawarkan di FJB Kaskus lebih

murah dibandingkan website lainnya.

75

Purchase

22

Kepercayaan terhadap kualitas dari barang atau jasa yang

ditawarkan di FJB Kaskus membuat anda terus melakukan

pembelian pada FJB Kaskus.

Post Purchase

23 Saya merasa puas terhadap barang dan jasa yang telah dibeli

dari FJB Kaskus.

24

Saya bersedia merekomendasikan FJB Kaskus kepada

keluarga, teman, dan orang lain di sekitarnya.

76

3. r Table

Tabel Nilai r Product Moment

N Taraf Signif

N Taraf Signif

N Taraf Signif

5% 10% 5% 10% 5% 10%

3 0,997 0,999 27 0,381 0,487 55 0,266 0,345

4 0,950 0,990 28 0,374 0,478 60 0,254 0,330

5 0,878 0,959 29 0,367 0,470 65 0,244 0,317

6 0,811 0,917 30 0,361 0,463 70 0,235 0,306

7 0,754 0,874 31 0,355 0,456 75 0,227 0,296

8 0,707 0,834 32 0,349 0,449 80 0,220 0,286

9 0,666 0,798 33 0,344 0,442 85 0,213 0,278

10 0,632 0,765 34 0,339 0,436 90 0,207 0,270

11 0,602 0,375 35 0,334 0,430 95 0,202 0,263

12 0,576 0,708 36 0,329 0,424 100 0,195 0,256

13 0,553 0,684 37 0,325 0,418 125 0,176 0,230

14 0,532 0,661 38 0,320 0,413 150 0,159 0,210

15 0,514 0,641 39 0,316 0,408 175 0,148 0,194

16 0,497 0,623 40 0,312 0,403 200 0,138 0,181

17 0,482 0,606 41 0,308 0,398 300 0,113 0,148

18 0,468 0,590 42 0,304 0,393 400 0,098 0,128

19 0,456 0,575 43 0,301 0,389 500 0,088 0,115

20 0,444 0,561 44 0,297 0,384 600 0,080 0,105

21 0,433 0,549 45 0,294 0,380 700 0,074 0,097

22 0,423 0,537 46 0,291 0,376 800 0,070 0,091

23 0,413 0,526 47 0,288 0,372 900 0,065 0,086

24 0,404 0,515 48 0,284 0,369 1000 0,062 0,081

25 0,396 0,505 49 0,281 0,364

26 0,388 0,496 50 0,279 0,361

THE EFFECT OF BRAND AWARENESS AND BRAND TRUST …

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