ANALYSIS OF PERSONAL FACTOR THAT AFFECTING PEOPLE IN

ANALYSIS OF PERSONAL FACTOR THAT AFFECTING

PEOPLE IN PURCHASING AND CONSUMING

AMERICAN FRIED CHICKEN FAST FOOD

(CASE STUDY IN KENTUCKY FRIED CHICKEN

LIPPO CIKARANG MALL)

By

Hengky Susanto

014200900071

A thesis presented to the

Faculty of Economics President University

in partial fulfillment of requirements for

Bachelor Degree of Economics Major in Management

President Univeristy

Cikarang Baru – Bekasi

Indonesia

January 2013

THESIS ADVISER

RECOMMENDATION LETTER

This thesis entitled “Analysis of Personal Factor that Affecting

People in Purchasing and Consuming American Fried Chicken Fast

Food (Case Study in Kentucky Fried Chicken Lippo Cikarang

Mall)”, prepared and submitted by Hengky Susanto 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, January 23, 2013.

Acknowledged by, Recommended by,

Irfan Habsjah, MBA. CMA Purwanto, ST, MM

Head of Management Thesis Advisor

Study program

PANEL OF EXAMINERS

APPROVAL SHEET

The Panel of Examiners declared that the thesis entitled “Analysis

of Personal Factor that Affecting People in Purchasing and

Consuming American Fried Chicken Fast Food (Case Study in

Kentucky Fried Chicken Lippo Cikarang Mall)” that was submitted

by Hengky Susanto majoring in International Business from the Faculty

of Economic was assessed and approved to have passed the oral

examinations on Tuesday, February 12th 2013.

Ir. Yunita Ismail, M.Si

Chair – Panel of Examiners

Irfan Habsjah, MBA. CMA

Examiner II

Purwanto, ST, MM

Examiner III

DECLARATIONOF ORIGINALITY

I declare that this thesis, entitled “Analysis of Personal Factor

that Affecting People in Purchasing and Consuming American Fried

Chicken Fast Food (Case Study in Kentucky Fried Chicken Lippo

Cikarang Mall)” is, to the best of my knowledge and belief, an original

piece of work that has not been submitted, either in whole or in part, to

another university to obtain a degree.

Cikarang, Indonesia, January 23, 2013

Hengky Susanto

ABSTRACT

The objective of this research is to analyze the personal factor in characteristics of

consumer behavior that affecting people in purchase and consume KFC. This research

case study is in KFC outlet in Lippo Cikarang Mall. This research shows that

consuming fast food or as known as junk food has risk of health disease. There are

five variables or factors in this research to be analyzed, and the dominant factors are

perosnalitirs (X5) and the weakest is Lifestyle (X4). This research using quantitative

research method and its conducted based on consumer behavior theory, focusing on

personal factor in consumer behavior characteristics and purchase decision. The data

were obtained by doing observation and distributing questioner to 93 respondents. For

processing the data from questionnaire, the researcher using SPSS (Statistic Product

and Service Solution) software version 16.0 with several test; validity test, reliability

test, F test, T test, multiple regression analysis. From the SPSS program multiple

regression result, X5 or personalities and self concept is the dominant factor

influencing purchase decision and X4 is non dominant or has no influence toward

purchase decision. The coefficient determinant (R Square) on this test is 62.6% means

that independent variables can describe dependent variable about 62.6%. F-Test in

this research show that independent variables simultaneously give influence to

dependent variable with significance level 0,00 and F value 29,2. For T-test result,

shows that independent variables or factor X1 (0.33), X2 (0.23), X3 (0.002), X5

(0.000) has influence partially because of the significance value below 0.05. For X4

(0.299) with the significance value above than 0.05, means X4 has not significance

influence toward purchase decision and for dominant factor in this research that

affecting dependent variable Y is X5 (Personality and Self-concept factor).

Keyword: Age and Lifecycle, Occupation, Economic Situation, Lifestyle, Personality

and Self-concept, Purchase decision

ACKNOWLEDGEMENT

Thank you Lord! Thank you Jesus! Thank you for the guiding, blessing while

writing this thesis then I can finish writing this thesis. Without your great blessing, I

can’t finish this thesis Lord! This thesis is to fulfill the requirements for finishing

bachelor degree in economic faculty of President University. I also want to say thank

you very much for;

a) My beloved parents Papa, Mama, and my brother Benny for supporting me

in writing this thesis. Thank you for your pray and bless papa, mama.

b) My best friends Bram, Eko, Martin, Anthony, Bernard, Adit, Willy, Andre,

Sucing, Najib, Koji, Pao, Irene, and the others, thank you for the support

and with our hard work in doing this thesis, we all can finish this thesis.

You guys are the best.

c) Mr. Purwanto, as my thesis advisor. Thank you, Sir, for your great and

wonderful guidance that you give to me during writing this research. thank

you for your advices and other supports.

d) Thank you very much for Mrs. Maria Ulfah, as the manager of KFC outlet

in Lippo Cikarang Mall. Thank you mam, for your guidance and

permission for conducting this research in your outlet.

I realized this research is still has lacking and not perfect, I openly accept for

every comments and suggestions for make this research better. Last, I hope this

research will give benefits for those who needs.

Bekasi, 23 January 2013

Hengky Susanto

TABLE OF CONTENTS

THESIS ADVISER RECOMMENDATION LETTER..............................................ii

PANEL OF EXAMINERS APPROVAL SHEET...................................................iii

DECLARATION OF ORIGINALITY.........................................................................iv

ABSTRACT...........................................................................................................................v

ACKNOWLEDGEMENT.................................................................................................vi

TABLE OF CONTENT.....................................................................................................vii

LIST OF TABLES..............................................................................................................x

LIST OF FIGURES.........................................................................................................xi

I. INTRODUCTION

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

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

1.2.1 Products……………………………………………………………………7

1.2.2 Vision and Mission…………………………………………………………8

1.2.3 KFC in Lippo Cikarang Mall……………………………………………….8

1.3. Problem Identified…………………………………………………………...…10

1.4. Statement of Problem……………..……………………………………………11

1.5. Research Objectives……………………………………………………………12

1.6. Significance of Study…………………………………………………………..12

1.7. Theorythical Framework……………………………………………………….14

1.8. Scope and Limitation…………………………………………………………...15

1.9. Assumption and Hypothesis…...……………………………………………….15

1.10. Definition of Term…………………………………………………………… 17

1.11. Chapter outline………………………………………………………………..18

II. LITERATURE REVIEW

2.1. Consumer behavior ……………………………………………………………….19

2.2. Characteristics of consumer behavior ……………………………………………... 20

2.2.1 Cultural factor …………………………………………………………….21

2.2.2 Social factor……………………………………………………………... 22

2.2.3 Psychological factor ……………………………………………………...23

2.2.4 Personal factor…………………………………………………………… 24

2.3. Types of buying decision behavior ………………………………………………...26

2.4. Buyer decision process …………………………………………………………….28

III. RESEARCH METHODOLOGY

3.1. Research methodology ……………………………………………………………..30

3.2. Research framework ……………………………………………………………….31

3.3. Research time and place …………………………………………………………...32

3.4. Research instrument ………………………………………………………………..32

3.4.1 Survey…………………………………………………………………… 32

3.4.2 Questionnaire …………………………………………………………….33

3.4.3 Data analysis ……………………………………………………………...36

3.5 Sampling design ……………………………………………………………………36

3.6 Statistical instruments ………………………………………………………………37

3.6.1 Validity …………………………………………………………………..38

3.6.2 Reliability ………………………………………………………………...40

3.6.3 Mean score and Overall mean score ……………………………………....42

3.6.4 Data classic assumption………………………………………………….. 44

3.6.5 Descriptive analysis……………………………………………………… 45

3.6.6 Multiple regression ……………………………………………………….45

3.6.7 Hyphothesis test ………………………………………………………….46

3.6.8 Coefficient Correlation (r) and Determination (r2)……………...………47

IV. ANALYSIS OF DATA AND INTERPRETATION OF RESULTS

4.1 Descriptive analysis ………………………………………………………………...49

4.1.1 Data Collection …………………………………………….……………..49

4.1.2 Charateristics of respondents ……………………………………………..49

4.1.3 Mean score and Overall means score analysis…………………………… 53

4.1.4 Statistical descriptive ……………………………………………………..57

4.1.5 Data classic assumption ………………………………………..…………58

4.2 Multiple Regression Analysis ………………………………………………………61

4.3 Interpretation of result 65

V. CONCLUSION AND RECOMMENDATION

5.1 Conclusion.........................................................................................................................69

5.2 Recommendation..............................................................................................................70

LIST OF REFERENCES …………………………………………………………….71

APPENDICES ………………………………………………………………………...73

LIST OF TABELS

Table 3.1 Likert scale …………………………………………………………...…..34

Table 3.2 Pre-questionnaire …………………………………………………...…….35

Table 3.3 Result of validity and reliability test ……………………………………...39

Table 3.4 Valid statements…………………………………………………………..40

Table 3.5 Reliability test result …………………………………………………...…41

Table 3.6 Correlation coefficients ………………………………………………..…48

Table 4.1 Ms & Oms Age and Life cycle ………………………………...…………54

Table 4.2 Ms & Oms Occupation ………………………………………...…………54

Table 4.3 Ms & Oms Economic Condition ………………………………...……….55

Table 4.4 Ms & Oms Lifestyle ……………………………………………...………55

Table 4.5 Ms & Oms Personality and self concept ……………………………...….56

Table 4.6 Ms & Oms Purchase decision ………………………………………...….56

Table 4.7 Descriptive statistics ………………………………………………..……57

Table 4.8 Result of Colinearity test ……………………………………………..….59

Table 4.9 Result of DW test ……………………………………………………..…59

Table 4.10 Result of Multiple Regression test (Coefficients) …………………..….62

Table 4.11 Result of Multiple Regression test (ANOVA) ……………………..…..64

Table 4.10 Result of Multiple Regression test (Model Summary) ……………..…..65

LIST OF FIGURES

Figure 1.1 Total of KFC sales international…………………………………………..3

Figure 1.2 Total of KFC sales Indonesia …………………………………………….4

Figure 1.3 Top brands 2012 ………………………………………………………….5

Figure 1.4 Total sales of KFC outlet in Lippo Cikarang Mall ……………………….9

Figure 1.5 Total customers of KFC outlet in Lippo Cikarang Mall ………………….9

Figure 1.6 Theoretical framework …………………………………………………..14

Figure 2.1 Consumer behavior ……………………………………………………...21

Figure 2.2 Maslows hierarchy of needs ……………………………………………..23

Figure 2.3 Four types of buyer decision behavior …………………………………..26

Figure 2.4 Five steps of buyer decision process …………………………………….28

Figure 3.1 Research framework …………………………………………………….31

Figure 4.1 Gender Distribution chart ……………………………………………….49

Figure 4.2 Age Distribution chart …………………………………………………..50

Figure 4.3 Education background Distribution chart ……………………………….51

Figure 4.4 Occupation Distribution chart …………………………………………..52

Figure 4.5 Monthly income Distribution chart ……………………………………..52

Figure 4.6 Respondents awareness of fast food risk distribution chart ……………..53

Figure 4.7 Normality test P. Plot ……………………………………………………60

Figure 4.8 Histogram normality test ………………………………………………...60

Figure 4.9 Result of heteroscedasticity test …………………………………………61

CHAPTER I

INTRODUCTION

1.1 Background of Study

In this modern era, where the globalization in every sector of business and

modernization in every sector in our lives, make our lives become more complex than

before. In Indonesia the developing country where many foreign or local investor

invest their business to be run in our country, as the result we can see many foreign

companies that run their business in Indonesia. With the total population of two

hundred fifty nine million nine hundred forty thousand eight hundred fifty seven

(259.940.857) on last December 2010, Indonesia has a good potential in developing

business.

The good economic progress also encourage people to just not fulfill they

basic need or primary, but their need also for the secondary need like lifestyle, and the

worst is lifestyle can encourage people to become more consumptive. Lifestyle

according to Kotler, 2011 is person’s pattern of living. Lifestyle change people living

behavior. People eat out home, go to fast food restaurant in late night, take a chit-chat

with their mates late night in coffee café are the examples of lifestyle in nowadays.

Indonesia is a country with the big population, what is the most important of

people need? People needs a food as their basic need for Physiological (Mashlow

hierarchy of need, 2006), then food is become one of their primary needs. A

traditional list of immediate "basic needs" is food (including water), shelter, and

clothing. Thus, the culinary business is the appropriate business to be developed. In

fact, there are so many restaurants business with the local or foreign food.

As the globalization consequences, foreign investor or foreign business comes

to Indonesia. The investor can market their business with the franchising their

business so the business can be spread to every area or place. According to Mitchell,

2012,“Franchising is a business model in which many different owners share a single

brand name. A parent company allows entrepreneurs to use the company's strategies

and trademarks; in exchange, the franchisee pays an initial fee and royalties based on

revenues”. Nowadays franchise business is developing, we can see there are so many

same brands of business spread in many places. With the high need of money as the

capital, franchise takes less work to get started, because the franchiser provides

anything the franchisee needs (Nembhard, 2011).

The advance of technology, and modernization in every sector of life,

including the cooking process to produced the primary needs of people, food. It can

make easier the processing the raw material or even to cook, for producing foods is no

longer time needed, no more workers required and more simple to cook. Nowadays

available also, there are freeze foods, or preheated foods which the easiest way to

consume, just heat the freeze foods.

Through the big population, developing of the culinary business with

franchising and advances if technologies, then exist the fast food restaurant business

with the franchising model. There are so many types of fast food in Indonesia, the

well-known fast food are American fast food restaurants, Japanese fast food

restaurants and Indonesian fast food restaurants. The American fast food restaurants

has many outlets, especially in the big city, it spreads in every mall or shopping

centre. “Fast food is the term given to food that can be prepared and served very

quickly, typically the term refers to food sold in a restaurant or store with preheated or

precooked ingredients, and served to the customer in a packaged form for take-

out/take-away: (Merriam–Webster dictionary).

The foreign fast food, with the adaption to Indonesian cultures, they provide

what Indonesian people like to eat, so they just not provide their original foods. We

can find many variety of fast food when we go to the mall in big cities then go to the

food court area; there are so many fast food restaurants with many people takes their

meal there. The short time for prepare the foods, easy to eat, good taste of the foods,

and affordable food price for specific foods, fast food becoming first choice for

people in big city who has limited time for lunch break and eats, since their time is for

working in all days. Teens, adults, child, or old people loves to eat this fast food,

sometimes they eat with the whole family in the restaurants, or have delivery services

to their home this kind of activities is part of modern lifestyle.

7,3947,830

8,2308,554

8,920

2007 2008 2009 2010 2011

Sales in Billion (in $ USD)

One of many top brands for American fast food is Kentucky Fried Chicken

(KFC). KFC fast food internationally holds by Yum! Brands. Yum! Brands has

38,000 restaurants in over 110 countries and territories. The company brands are

Kentucky Fried Chicken, Pizza Hut, Taco bell, and Wing Street. Those are the fast-

food restaurant brands by Yum! Brand, in other word, KFC doesn’t have any group

companies, but the owner of KFC, Yum! Brands has the group companies like Taco

Bell, Pizza Hut, and Wing Street. As an additional info, A&W and Long John Silver

has dropped from Yum! Brands in last 2011.

Figure 1.1: Total of KFC Sales International, in billion USD.

Source: Yum! Brands 2011 Financial report

The graphic above explain the increasing of total KFC international sales, it

shows the total sales of KFC worldwide including KFC in Indonesia. The increasing

of total sales from 2007 until 2011 show us that fast food industry have a good

potential in year to year. In 2007, KFC international got $7,394 billion, in 2008 KFC

international got $7,840 billion, in 2009 KFC international got $8,230 billion, in 2010

KFC international got $8,554 billion, and in 2011 KFC got $8,920 billion for total

sales.

Seeing this big opportunities to develop the fast food restaurants, to fulfill

what the people in big cities need, then Kentucky Fried Chicken the American fast

1,589,643

2,022,633

2,454,360

2,913,605

3,316,800

2007 2008 2009 2010 2011

Sales in Million Rupiah

food held their business in Indonesia. In Indonesia, Kentucky Fried Chicken retail

business the owner of the franchise is PT Fastfood Indonesia Tbk. established by

Gelael Group in 1978. Same as the international Yum!, KFC with the only one owner

of franchise PT. Fastfood Indonesia Tbk. doesn’t have any group companies in

Indonesia. Various varieties of products, makes Indonesian people like to consume

KFC. From the latest information (tribunkaltim.co.id, 2012), KFC Indonesia has 425

and have target become 440 outlets this year in 95 cities in Indonesia to serve the

consumer. KFC Indonesia focus on fried chicken based food, besides fried chicken;

they also provide another side dishes, beverages and dessert.

Figure 1.2: Total Sales of KFC Indonesia 2007 – 2011, in Million Rupiah

Source: PT. Fast Indonesia Tbk. Financial Report 2011

The graphic above explains the sales of KFC in Indonesia increasing from

2007 until 2011. KFC Indonesia has the total of 403 outlets and KFC gets 3.3

quintillion rupiah in 2011 increasing from 2010 just 2.9 quintillion rupiah

(Neraca.co.id, 2012). This increasing sale indicates that Indonesian people have great

interest in purchasing and consuming fast food.

From the Top Brands survey in Indonesia for 2012, Kentucky Fried chicken is

still becomes the top brand of fast food restaurants with the indexing rate of 61.9%

and for the second place is Mc Donald’s with 20.1% of index rate. This Top Brand

2012 survey held in 8 cities: Bandung, Jakarta, Makassar, Medan, Semarang,

Surabaya, Balikpapan, and Pekanbaru. The random samples in each city are 400

persons. The total number of random respondents surveyed is 3250, and the total

number of booster respondents is 850. This survey informs us which brands are

known very well for Indonesian people. Here is the result of Top Brand survey 2012;

Figure 1.3: The Result of Top Brand 2012, category in Retail business of

Fast Food Restaurants.

Source: Top Brand 2012 survey

The result from the survey above explains how Indonesian people still take

KFC as the top of brand in fast food restaurants. KFC Indonesia with the many of

outlets that KFC Indonesia has, we can find it easily everywhere. Even in every big

city and place or areas that have so many people, there will be outlets for KFC. People

can consume this fast food with the many varieties of products whenever they want,

the consumer also can freely consume the products, almost all people with the

different ages and economic condition can consume fast food. But nowadays, for

eating in the fast food restaurants like KFC is not a special thing, it becomes a modern

lifestyle when the family especially the mother doesn’t need to cook and prepared

foods, they just come to the outlets then order the food, eat there with the husband and

their children.

Another reasons that people to consume fast food is the lack of time that

people get in daily works, people usually do anything in an expressway to fulfill what

they need. Working from the morning until afternoon then at night makes people do

not have time to prepare their food then they just go to American fast food like KFC.

Fast food becomes the solution of people who do not have enough time for prepare

their foods. With the 24 hour delivery services (for some outlets), people have their

decision to consuming fast food. With the good economic background, the higher

price when consuming fast food it will not become a matter. People also do not take

attention with the low nutrients ingredients, what they want is just the delicious taste

that can fulfill their hunger. In short, there are many disadvantages for consuming fast

food but people still oftenly consume it.

In this research, the researcher research based on the consumer behavior

theory by Kotler and Armstrong. Consumer behavior when they decide to buy or

purchase something of they want, is based on the several factor that affect the

consumer for purchase it. There are cultural factor, social factor, personal factor, and

psychological factor. This research is taken for personal factor, then personal factor

consist of several factors such as age, occupation, economic situation, lifestyle,

personality and self-concept. In this research, the researcher is to analyze of personal

factor that motivate people toward to their purchase decision in purchasing and

consuming American fast food Kentucky Fried Chicken (KFC).

1.2 Company Profile

As the franchise holder of Kentucky Fried Chicken (KFC) Indonesia, the

Gelael Family founded PT Fast Food Indonesia Tbk., in 1978. In 1979, the company

opens the first KFC fast food restaurant outlet in October at Melawai Street in Jakarta.

With the entry of Salim Group in 1990 as one of the major shareholders, Company's

expansion initiatives were reinforced and in 1993, the Company became publicly

listed in Indonesia Stock Exchange to further enhance the development growth. The

present majority shareholding of 80% is distributed 43.84% to PT Gelael Pratama,

owned by the Gelael Group and 35.84% to PT Megah Eraraharja, a company under

the Salim Group; while the Public and Cooperatives share the minority (20%)

PT. Fast Food Indonesia Tbk., was given the license to use KFC brand by its

present franchisor, Yum! Asia Franchise Pte Ltd, which is part of Yum! Restaurants

International (YRI). YRI itself is a company under Yum! Brands Inc, a publicly-listed

company in the U.S. and the franchise owner of four other well-known brands, i.e.

Pizza Hut, Taco Bell, A&W, and Long John Silvers.

The first outlet has successful business and it start the way for the opening of

more additional outlets in Jakarta. Also, the outlets expansion to every regional

coverage including other major cities in Indonesia, like Bandung, Semarang,

Surabaya, Medan, Makassar, and Manado. By the many outlets that KFC opens, it

makes KFC become dominant brand in fast food franchise business in Indonesia.

Now KFC has 425 outlets of restaurants to serve Indonesian people in 95 cities in

Indonesia.

1.2.1 Products

KFC has main products in fried chicken, Colonel's Original Recipe and Hot &

Crispy Chicken. KFC products grouped into several categories as Menu Goceng,

Menu Praktis, and package meals. Menu Goceng category, which means are all the

menu items price at Rp5,000 each and not including tax. There are more than 10

menu items providing real value and the most “sell well” items are Mocha Float and

OR Burger Deluxe. To add variety to this Goceng menu category, menu selections

were changed due the changing preferential taste of customers.

On the other hand, Menu Praktis category includes menu items that are easy to

take away and can be consume easily, like Colonel Burger, Twister, Colonel

Yakiniku, etc.

To provide customers with good value, package meals (meal saving

combinations) and value meals, like Super Panas and KFC Attack are continuously

offered. Supplementing these core menu items are products catering to local market

taste, like Potato Croquette (Perkedel), Rice (Indonesian staple food), Salad, and KFC

Soup. KFC also offers various choices of beverages such as soda or non-soda drinks.

Also in 2011, the Company continuously expanded KFC Coffee as a channel

of service in all free-standing outlets, means the outlets has independent building not

joining another mall or other building. KFC restaurant outlets by providing a wide

range of quality coffee menu items, hot and cold, served in a separate counter with

designated seating for coffee lovers. To attract customers during lean day-part of

operation, the Company also has Krushers beverage menu item with a wide choice of

flavors.

1.2.2 Vision and Mission of PT. Fast Food Indonesia Tbk.

Vision:

Maintain KFC’s market leadership and always be the No. 1 brand in the

QSR(Quick Service Restaurants) business in Indonesia by being the most modern

and favorite restaurant in terms of product, value, service, and assets.

Mission:

Strengthening KFC brand image through innovative strategies and ideas,

improving customers’ dining experience by continuously and consistently providing

quality products, services, and assets suited to customers’ changing needs and taste.

1.2.3 KFC in Lippo Cikarang Mall Profiles

This research conducts in scope of KFC Mall Lippo Cikarang, the outlet in

Lippo Cikarang Mall was established on 10th June 1995. The KFC outlet in Lippo

CIkarang Mall has three main services of sales, first there is mother store or main

store in the first floor and in second floor KFC has a small kiosk to serve another

customer, and the last there are home delivery service. The manager of KFC outlet in

Lippo Cikarang Mall is Mrs. Maria Ulfah, with the assistant manager with Mr.

Wasyanto. There are also three shift leaders Mrs. Ameliana, Mr. Teodorus Seru, and

Mr. Ahmad Suseno. In this October, KFC outlet in Lippo Cikarang Mall has 42

people of employees including in mother store, kiosk and home delivery.

These graphics explain the total sales and total customers of KFC outlet in

Lippo Cikarang Mall period of January until October 2012.

951,456,278

793,983,438

937,453,647

855,605,480

976,991,893

1,011,468,685

1,045,533,243

1,342,716,427

943,588,177

943,396,157

Total Sales of Mother store, Kiosk and Home Delivery (IDR)

19448

18072

20313

2044420978 21089 20866

23870

2091019205

0

5000

10000

15000

20000

25000

30000

People

Figure 1.4: Total Sales of KFC Outlet in Mall Lippo Cikarang,

Period January – October 2012

Source: KFC Lippo Cikarang Mall outlet data.

Figure 1.5: Total Customers of KFC Outlet in Mall Lippo Cikarang,



1.3 Problem Identified

Based from the explanation above, consuming fast food as the part of modern

lifestyle for many people who are busy with their activities and have no time to

prepare foods, so they just take fast food to eat and don’t realize how harmful fast

food for our body. As we know those varieties of fast food are well known as a junk

food. Junk food refers to fast foods which are easy to make and easy to consume, zero

in nutrition value, have only high fat to cause an illness (dietpolicy.com, 2012).

Salted snack foods, candy, gum, most sweet desserts, fried fast food and

carbonated beverages are some of the major junk foods. Fast food that we often to eat

like fried chicken, or another pre heated food, also another drinks with zero nutrition

but has high level of sugar or another chemical ingredient such as coloring and taste

maker can called as a junk food. Comparing the advantages of fast food is faster serve

time and cheap price of food than the disadvantages is more dangerous and harmful

for our body. The problem occurs when consuming fast food is health desease and

monetary problem for several people.

It is become the fact when consuming fast food, it will increase the illness or

diseases risk caused by fast food. The most common disease or serious health problem

are overweight or obesity, diabetic and high cholesterol level to have heart and liver

illness (WHO.int, 2012). Overweight or obesity are both labels for ranges of weight

that are greater than what is generally considered healthy for a given height.

“Overweight and obesity are the fifth leading risk for global deaths. At least

2.8 million adults die each year as a result of being overweight or obese. In addition,

44% of the diabetes burden, 23% of the ischemic heart disease burden and between

7% and 41% of certain cancer burdens are attributable to overweight and obesity”.

Overweight also closely related with high level of fat or cholesterol then it can cause

the possibility of coronary heart disease because the accumulation of plaque of

cholesterol or fat in blood vessel.

Diabetic caused by consuming fast food with high level of sugar (WHO.int,

2012). When consuming fast food usually people have their dessert with another

sweet food or drinks. This sweet food or drinks have high sugar level that potential

causing diabetic disease. This high level of sugar also affects to the obesity disease.

Diabetes increases the risk of heart disease and stroke. 50% of people with diabetes

die of cardiovascular disease.

The dangerous health risk caused by consuming fast food, there are still many

people like to consume it and makes it to become as part of their modern style. People

for sure know the consequence of consuming junk food, but they do not pay attention

to that harmful risk.

When they purchase or buy the product, several factors affected the consumer

behavior; there are cultural factor, social factor, personal factor, and psychological

factor. In this research, researcher takes the personal factor with age and lifecycle,

occupation, lifestyle, personality as the factors. The problem is to find the dominant

factor based on the personal factor that motivates people to consume American fast

food Kentucky Fried Chicken and from the personal factors, researchers want to find

any correlation between the factors and consumer decision to consume fast food.

1.4 Statement of Problem

Based on the explanation above and preliminary research, the statement of

problem for this study is:

a) Do personal factors (age, occupation, economic situation, lifestyle and

personalities) affect the people motivation toward to people purchase

decision in purchasing and consuming fast food?

b) What is the dominant factor or variable toward to people purchase decision

in purchasing and consuming fast food in the following factors of personal:

Age, occupation, economic situation, lifestyle and personalities?

1.5 Research Objectives

a) To analyze the influence of variables in the following factors of personal:

motivation Age, occupation, economic situation, lifestyle and personalities

that affect people purchase decision in purchasing or consuming fastfood.

b) To identify the dominant factor or variable that motivates people for

consuming fast food.

1.6 Significance of Study

a. Theoritical Significance

For develop the science study, especially for the economics field study,

this research is conduct. In addition, the researcher hopes this research can

give the contribution and can be used as the reference for the consumer

behavior study and the development of fast food business, so that the fast

food business investors can know more about consumer behavior

especially for the personal factor.

b. Practical Significance

For PT. Fast Food Indonesia Tbk., as the holder of KFC franchising in

Indonesia

To contribute the additional information about the consumber behavior

especially on the personal factor that motivate people to comsume this

American fast food. Based on the result of this research, they can make

new program or another strategies in market their products so the

consumer will purchase or consume more.

c. Academic Significance

For President University campus students or communities

This research can be references for continue studying about consumer

behavior and also can provide any information needed for knowing more

about American fast food Kentucky Fried Chicken.

Characteristics of Consumer Behavior

1.7 Theoretical Framework

Figure 1.6 Theoretical Framework

Kotler and Armstrong, 2008

Cultural

- Culture

- Sub Culture

- Social Class

Social

- Reference groups

- Family

- Roles and status

Personal

- Age and Life cycle (X1)

- Occupation(X2)

- Economic situation(X3)

- Life style(X4)

- Personalities and self

concept (X5)

Purchase Decision (y)

Psychological

- Motivation

- Perception

- Learning

- Belief and attitudes

1.8 Scope and Limitation

Based on the aim of the research is that the researcher wants to know, what is

the dominant factor from the personal factor on consumer behavior, that motivate

people to consume American fast food Kentucky Fried Chicken KFC. The researcher

choose KFC, because it is the one of many culinary business industry that serve

American type fast food specially for fried chicken also, the modern lifestyle

nowadays, take people to consume fast food than cooking for their food. This research

is conduct as a case study for KFC outlet in Lippo Cikarang Mall. The researcher

chooses outlets in Cikarang, is for the affordable place to take the research and this

outlet have many customer that consist of young, adults, and old ages people.

Consumer behavior affected from several factors; social, cultural, personal, and

psychological factor, the researcher limited the scope of the research is just on the

personal factor.

There are many factors from characteristics of consumer that affect person to

consume or decide purchasing goods, the researcher chooses personal factor in

consumer behavior that motivate people to consume the American fast food because

the factors in personal such as age, occupation, economic situation, lifestyle and

personalities are the most interesting factor to be researched. Age are the factor that

influenced person to buy some products, because the maturity level in thinking

influenced person to purchase and consume the products, people also nowadays think

how to adjust what kind of goods that they purchase and consume based on their

occupation and economic situation. To consume or purchase the non-cheap goods,

they must think about their economic situation in condition of manage their outcome

to be lower than their income. Lifestyle and personalities also influenced how they

lives in this modern era, so it will affect what products or brands that they purchase.

1.9 Assumptions and Hypothesis

According to what researcher stated on statement of problem of this research,

the researcher take the hypothesis as the follow:

Null Hypothesis (Ho1): Age & Life Cycle factor has no influence toward to people

purchase decision in purchasing and consuming fast food.

Alternate Hypothesis (Ha1): Age & Life Cycle factor has influence toward to people


Null Hypothesis (Ho2): Occupation factor has no influence toward to people


Alternate Hypothesis (Ha2): Occupation factor has influence toward to people


Null Hypothesis (Ho3): Economic situation factor has no influence toward to people


Alternate Hypothesis (Ha3): Economic situation factor has influence toward to people


Null Hypothesis (Ho4): Lifestyle factor has no influence toward to people purchase

decision in purchasing and consuming fast food.

Alternate Hypothesis (Ha4): Lifestyle factor has influence toward to people purchase


Null Hypothesis (Ho5): Personalities factor has no influence toward to people


Alternate Hypothesis (Ha5): Personalities factor has influence toward to people


Null Hypothesis (Ho6): All Personal factors in consumer behavior have no influence

toward to people purchase decision in purchasing and consuming fast food.

Alternate Hypothesis (Ha6): All Personal factors in consumer behavior have influence


1.10 Definition of Term

Fast Food: Type of food that can be served quickly. Usually as a pre-cooked food

or freeze food. this food was designed for ready availability, use, or

consumption and with little consideration given to quality. There are so

many types of fast food for example American fast food such as fried

chicken, hamburgers and pizza. This fast food is available in outlets or

fast food restaurants.

Junk Food: Also known as fast food, fast food is junk food. it can be called as junk

food because the ingredients or the food nutrition in the fast food has

very low level of nutrition. Generally, Junk food has high in calories

level but low in nutritional content or value.

Franchise: Is model of business that giving a license for a branch holder. People

can open their business under another companies name or brands to

sell their products, there was a fee to buy the franchising license.

Obese: Known as overweight or obesity is a disease caused by many factors,

but the prior caused by the fast food. By consuming a high calories

level and low nutrition level of food. Obese identical with other serious

diseases, such as high cholesterol level and heart disease.

Diabetic A disease that can be caused by consuming fast food, another side

dishes or beverages that contains high level of sugar. Majority people

get diabetic types – 2, it caused by negative or poor lifestyle that

people have.

1.11 Chapter Outline

Chapter I Introduction

This chapter consists of background of study, Kentucky Fried Chicken

Indonesia company profiles, problem identified, statement of problem,

research objectives, significance of study, theoretical framework, scope

limitations, assumption and hypothesis, definition of term and last, chapter

outline.

Chapter II Literature Review

This chapter consists of consumer behavior theory, characteristics of consumer

behavior, types of buying decision and last, buying decision process.

Chapter III Research Methodology

This chapter consists of research methodology theory, research framework,

research time and place, research instruments, sampling design, descriptive

analysis, statistical instruments.

Chapter IV Analysis of Data and Interpretation of Result

This chapter consists of descriptive analysis, multiple regression analysis, and

interpretation of result. Descriptive analysis consist of several descriptive

result such as characteristics of respondents, mean score and overall mean

score analysis, statistical descriptive and classic data assumption.

Chapter V Conclusion and Recommendation

This chapter consists of conclusion and several recommendations for

theoretical, practical and academicals significance.

CHAPTER II

LITERATURE REVIEW

2.1 Consumer Behavior

According to Kuester, Sabine (2012,p110) “Consumer behaviour is the study

of individuals, groups, or organizations and the processes they use to select, secure,

and dispose of products, services, experiences, or ideas to satisfy needs and the

impacts that these processes have on the consumer and society”.

The definition of consumer buyer behavior according Kotler & Armstromg

(2008, p122); “Consumer buyer behavior refers to the buying behavior of final

consumers – individuals and households who buy goods and services for personal

consumption”.

The definition of consumer behavior according to Schiffman & Kanuk 2007;

“Consumer behavior is defined in many ways but it can be accepted as 'the behavior

that consumers display in searching for, purchasing, using, evaluating and disposing

of products and services that they expect will satisfy their needs”.

This consumer behavior from the definitions above, can be explained also as

study for a process of how consumer or people have their decision to select, purchase,

or consuming goods or services based on their needs and get the satisfaction from the

purchasing decision. According to Peter, J. Paul 2005; consumer behaviors involves

the thoughs and feelings people experience and actions they performed in

consumption processes, it also includes all the things in the environment that

influences thouthgt, feelings and actions”

Not all people will buy the same products; they have their own thinking

before deciding to purchasing goods or services. Consumer behavior refers to the

selection, purchase and consumption of goods and services for the satisfaction of their

wants. There are different processes involved in the consumer behavior. Initially the

consumer tries to find what commodities they would like to consume, then they

selected any goods or services that they think is the best. After selecting the products,

the consumer makes an estimate of the available money that they can spend.

Lastly, the consumer analyzes the prevailing prices of commodities and takes

the decision about the goods that they will purchase. The all consumers combine into

consumer market, the definition of consumer market according principles of

marketing a global perspective book is “all the individuals and households who buy or

acquire goods and services for personal consumptions.”

Consumer behavior deals with why people want to buy and why people do not

want to buy the products. Consumer purchases are influenced by the characteristic of

the consumer behavior such as cultural factor, social factor, personal factor, and

psychological factor.

2.2 Characteristics of Consumer Behavior

There are five characteristics of consumer behavior, which influence strongly

people buying decision process according to Kotler and Armstrong, 2008. There are;

a. Cultural factor

b. Social Factor

c. Personal Factor

d. Psychological Factor

Figure 2.1 Factors Influencing Consumer Behavior

Source: Kotler and Armstrong, 2008

2.2.1 Cultural Factors

Cultural factors have strong influence to consumer behavior. According to Kotler and

Armstrong, 2008, there are three factors inside cultural factors; culture, subculture,

and social class.

a. Culture

Culture is the set of basic values, perceptions, wants, and behaviors

learned by a member of society from family and other important institution.

This culture must be learned in order to know the consumer behavior. The

influence of culture on buying behavior varies from country to country.

Characteristics of consumer behavior

Cultural

• Culture

• Sub

Culture

• Social

Class

Social

• Reference

groups

• Family

• Roles and

status

Personal

• Age and Life

cycle

• Occupation

• Economic

situation

• Life style

• Personalities and

self concept

Psychological

• Motivation

• Perception

• Learning

• Belief and

attitudes

Purchase Decision

b. Subculture

From culture, it contains subculture, subculture consists groups of people with

shared value system based on common life experience and situations. Subculture

includes nationalities, religions, racial groups, and geographic regions.

c. Social Class

Every society has a social class structure. Social classes are society’s relatively

permanent and ordered divisions in a society whose members share similar

values, interests, and behaviors. Social class not only determined from single

factor such as income, but also measured combination of occupation, income,

education, wealth, and other variables.

2.2.2 Social Factors

According to Kotler and Armstrong, 2008, a consumer’s behavior also is

influenced by social factors, such as reference groups, family, and roles and status.

a. Reference Group

Grioups that have direct influence and to which a person belongs are called

membership group, membership group serve as direct or indirect points of comparison

or reference in forming a person attitudes and behavior. When a person decides to buy

a product, reference of groups gives recommendation and influence that person mind

to buy or do not buy the products, so it will affect the consumer behavior.

b. Family

Family members can strongly influence buyer behavior. The family is the

most important consumer buying organization in society. The members of the family

can give influence when the person in the family wants to purchase some products or

services.

c. Roles and status

People usually choose the products appropriate to their roles and status. For example,

person in the family is a father, and in the organization is a vice president, then in

company he will buy clothes that reflects his role and status in the organization as the

vice president.

2.2.3 Psychological Factors

According to Kotler and Armstrong, 2008, the four majors of psychological

factors that influence the consumer behavior for buying decision, there are

motivation, perception, learning, and belief and attitudes.

a. Motivation

The level of motivation also affects the buying behavior of customers. Every

person has different needs such as physiological needs, biological needs, social needs

etc. Therefore, a need becomes a motive when it is more pressing to direct the person

to seek satisfaction. Motive is a need that is sufficiently pressing to direct the person

to seek satisfaction of the need.

Another theory for human need, by Maslow from the book “essential

management” by Harold Koontz & Heinz Weihrich. (2006). Abraham Maslow

explained the hierarchy of needs why people driven by particular of needs at

particular times. From the most pressing at the bottom to the last pressing at the top.

Figure 2.2 Maslow’s Hierarchy of Needs

Source: Harold Koontz & Heinz Weihrich. (2006)

b. Perception

Perception is the process of people selecting, organizing and interpreting

information in a way to produce a meaningful picture of theworld. Three different

perceptual processes are selective attention, selective distortion and selective

retention.

c. Learning

Learning describes changes in an individual’s behavior arising from the experience.

Learning occurs through the interplay of drives, stimuli, cues, response, and

reinforcement.

d. Belief and attitudes

Customer possesses specific belief and attitude towards various products. Beliefs and

attitudes make up brand image and affect consumer buying behavior. Belief is a

descriptive thought a person has about something, may be based on the

knowledge,opinion, or faith and may or may not carry an emotional charge. Attitudes

describes a person relatively consistent evaluations, feelings, and tendencies toward

object or idea.

2.2.4 Personal factors

According to Kotler and Armstrong 2008, a buyer decision is influenced by

personal characteristics such as the buyer age and life cycle stage, occupation,

economic situation, life style, and personality and concept. This research concern

about personal factors and here is the theory of consumer buying behavior based on

personal factor.

a. Age and Life Cycle Stage

People change the goods and services that they buy over the lifetimes. Taste in food,

clothes, furniture, and recreation are often age related. There will be different from

young age person taste to old age person taste, this different based on the age. Life

cycle stage for example from the single, married, have a family, unmarried, or another

cycle stage will affect the consumer behavior.

There are five segments of life age;the youth segment includes customer younger than

18. Getting started consists customer aged 18 to 35, who are going through first

experience in their lifes for example graduated, first job, first marriage. Builders

customer aged 35 to 50 are in the peak of earnings years. Accumulators aged 50 to 60

worry about saving for retirement and wisely investing. The last is preservers,

customer aged above 60 want to maximize their retirement income to maintain a

desired style.

b. Occupation

A person occupation affects the good or services that people bought and the

occupation of a person has significant impact on his buying behavior. For example the

white collar who works in a company as the manager, they will buy clothes that suit

for their occupation, not the informal but formal clothes and another example a

marketing manager of an organization will try to purchase business suits, whereas a

low level worker in the same organization will purchase rugged work clothes.

c. Economic Condition

Consumer economic situation has great influence on his buying behavior. If the

income and savings of a customer is high then he will purchase products that are more

expensive. On the other hand, a person with low income and savings will purchase

inexpensive products. Marketers of income sensitive goods watch trends in personal

income, savings, and interest rates. The economic condition of personal and the

current economic issue will affect customer’s decision before buying goods and

services. The personal economic condition of the cardholders cover; spendable

income, savings and assets, debts, borrowing power, and also attitudes toward

spending and saving.

d. Lifestyle

Lifestyle is a person’s pattern of living as expressed in their psychographics, it

also can determined as a person pattern of living as expressed in their Activities,

Interest, and Opinion. People who are coming from same culture, or subculture, social

class, occupation may have different lifestyle. It involves measuring consumer’s

major AIO dimensions. Activities such as work, hobbies, shopping, sports, and social

events, Interest such as food, fashion, family, and recreation, Opinions such as about

themselves, social issue, business, and products. Lifestyle capture more than the

person’s social class or personality and it profiles a person pattern of acting and

interacting in the world.

e. Personality and Self Concept

Each person’s distinct personality influences his or her buying behavior. Personality

refers to the unique psychological characteristics that lead to relatively consistent and

lasting response to one’s own environment. Personality changes from person to

person, time to time and place to place. Therefore it can greatly influence the buying

behavior of customers. Actually, Personality is not what one wears; rather it is the

totality of behavior of a man in different circumstances. It has different characteristics

such as: dominance, aggressiveness, self-confidence etc which can be useful to

determine the consumer behavior for particular product or service. Many marketers

use a concept related ro personality, a person self-concept also called as self image.

The basic self concept premise is that people possessions contribute to and reflect

their identities.

2.3 Types of Buying decision Behavior

Henry Assael theory, according the book by Harsh V. Verma, Service

Marketing; Text and Case, (2012) proposed four types of decision making behavior

depending upon of buyer involvement and perceived differentiation among brands.

The four types are complex buying, dissonance reducing, variety seeking and habitual

buying behavior.

Figure 2.3; Four types of buying decision behavior

Source; Henry Assael theory, by Harsh V. Verma 2012.

Complex buying

behavior

Variety seeking

behavior

Dissonance reducing

buying behavior

Habitual buying

behavior

High Involvement Low involvement

Significant differences

between brands

Few differences between

brands

a. Complex Buying Behavior

According to Kotler and Armstrong 2008, complex buying behavior is a

consumer in situations characterized by high consumer involvement in a purchase and

significant perceived differences among brands. According to Harsh V. Verma 2012,

this mode called as complex because of the full length of the process and high rigor

involved. There are three step sequence of complex buying behavior, first developing

belief about the product, then attitudes, and then making a thoughtful purchase choice.

b. Dissonance-Reducing Buying Behavior

Dissonance reducing behavior occurs when consumers are highly involved

with an expensive, infrequent, or risky purchase, but see little difference among

brands. After the purchase, consumer will experience post purchase dissonance. The

customer may experience dissonance after the purchase because of unmet

expectations or hearing good about unchosen alternatives products. Unlike complex

buying, where recognition and affect develop before purchase, it occurs at post-

purchase stage in dissonance reducing behavior.

c. Habitual Buying Behavior

Consumer buying behavior in situation characterized by low consumer

involvement and few significant perceived brand differences. According to Harsh V.

Verma 2012, habitual buying signifies a situation when the decision-making is

replaced by habit. Habit is kind of behavior where little or no cognitive activity is

involved. Consumer appear to have low involvement with most low cost, frequently

purchased products.

d. Variety Seeking Buying Behavior

Consumer undertakes variety seeking buying behavior in situation

characterized by low consumer involvement but significant perceived brand

differences. For example, consumers often do a lot of brand switching, from one

product then another product because of during the consumption they didn’t get any

satisfaction, or simply to try something different. Brand switching occurs for the sake

of variety rather than because of dissatisfaction. This situation combines significant

perceived differences among brands with low customer involvement or lower buying

significance.

2.4 Buyer Decision Process

According to Kotler and Armstrong 2008, people in decide to purchase the

products there are five stage in buyer decision. There are; need recognition,

information search, evaluation of alternatives, purchase decision, and post purchase

behavior.

Figure 2.4; Five steps in buyer decision process

Source: Philip Kotler & Gary Armstrong (2008).

1. Need recognition

In this first step, person or consumer realize and discover the needed. The

buying process starts with need recognition in other word, buyer recognizers a

problem or need. the need can be started by internal stimuli when one of the person’s

normal needs for example hunger, thirst to a level high enough to become drive and

for the external stimuli for example, if one of the person thinking about buying car

after they discussed with another people.

2. Information search

At this level, a person simply becomes more receptive to information about a

product. The stage of information search is the stage of buyer decision process in

Need Recognition

Information Search

Evaluation of alternatives

Purchase decision

Postpurchase behavior

which the consumer is aroused to search for more information; the consumer may

simply heightened attention or may go into active information search. Consumers can

obtain information from any of several sources that include personal sources,

commercial sources, public sources and experiential sources. Personal sources such as

family, friends, neighbors, and acquaintances. Commercial sources such as

advertising, websites, dealers, packing, and display. Public sources such as mass

media, consumer rating organization, internet searches. Experiental sources for

example handling and examining for using the products.

3. Evaluation of Alternatives

Consumer makes final judgment through comparing the alternatives. Evaluation of

alternatives is the stage of the buyer decision process in which the consumer uses

information to evaluate brands in the choice set.

4. Purchase Decision

After the evaluation, consumer ranks brands and forms purchase intention. Consumer

may form an intention to buy the most preferred brand or the buyer’s decision about

which brand to purchase. In purchase decision, there are two factors between purchase

intention and purchase decision. First is an attitude of others, other people that

important to the customer could change the decision of purchasing one product. the

second factor is an unexpected situational factors, the consumer may form a purchase

intention based on expected income, expected prize, and product benefits or an

unexpected events may change the purchase decision.

5. Post purchase behavior

The stage of the buyer decision process in which the consumers takes further

action after purchase, based on the satisfaction or dissatisfaction of the products that

they purchase. The consumer can be categorized to satisfied or dissatisfied after a

purchasing from the relationship between the consumers expectation and products

perceived performance. If the product falls from customer’s expectation, it will make

the customer disappointed. If it meets expectation then the customer is satisfied, if it

exceeds expectation then the consumer is delighted.

CHAPTER III

RESEARCH METHODOLOGY

3.1 Research Methodology

Research methodology according to Merriam Webster dictionary is the

analysis of the principles of methods, rules, and postulates employed by a discipline

in the research, research methodology also applied as the systematic study of methods

that are, can be, or have been applied within a discipline in the research. In the

research, there are two majors research methodology; qualitative and quantitative

analysis. In this research, the researcher use quantitative analysis method for the

method of research. According to Given & Lisa M., 2008, quantitative research is

“Quantitative research refers to the systematic empirical investigation of social

phenomena via statistical, mathematical or computational techniques. Quantitative

data is any data that is in numerical form such as statistics, percentages, etc.”

Measurement and statistics are central to quantitative research because they

are the connections between empirical observation and mathematical expression of

relations. Quantitative researcher concerned with the development and testing

hypotheses and the generation of models and theories that explain behavior (Wayne

K. Hoy, p1, 2009).

According to Nicholas Waliman (2006), “Quantitative techniques rely on

collecting data that is numerically based and amenable to such analytical methods as

statistical correlations, often in relation to hypothesis testing”.

The researcher uses quantitative method because it provides the fundamental

connection between empirical observation and mathematical expression of

quantitative relationships. Quantitative research methods were originally developed in

the natural sciences to study natural phenomena (Hohmann U., 2006).

3.2 Research Framework

Research framework consist of the process of the research that researchers takes,

the figure below explains the steps or process in conducting this research.

Figure 3.1 Research Framework

Source: Construct by researcher

Statement of Problem

Literature Review

Pre-Questionnaire

Validity and Reliability Test

Processing Data, Valid and Reliable?

Yes

No

Final Questionnaire

Data Transformation and Processing Data

Analyzing Data

Conclusion

Using Ms. Excel

2003

Using SPSS

Program, Ver. 16.0

Survey

3.3 Research Time and Place

The research was conducted in Lippo Cikarang Mall, the respondents are

people who are purchasing and consuming American fast food. In this research, the

researcher takes a study case or the limitation of the research in Kentucky Fried

Chicken, the fast food or quick service restaurants outlet in Lippo Cikarang Mall.

First, the preliminary research or to gathering data for pre-questionnaire was conduct

at November 2012, and using the questionnaire methods. After the researcher finishes

the pre-test questionnaire and testing a validity and reliability test, the researcher

conducted the final Questionnaire in December 2012 by using the same method of

Questionnaire.

3.4 Research Instruments

In this research, the researcher collected the data from the surveys to the

manager of the outlet, literature review, internet research, and questionnaires as the

primary data. To analyze the collected data, researcher used SPSS program version

16.0, and Microsoft Excel program.

3.4.1 Survey

In this research, before doing the pre-questionnaire test, the researcher seeks

information, problems, and the phenomena of any issue that related to the researcher

major, management, concentration in International Business. Researcher takes this

problem of analysis of consumer behavior especially in personal factor that influence

people toward purchase decision or consuming the American fast food, and in this

case, the researcher take a case study in Lippo Cikarang Mall. As mentioned above,

the researcher takes target of respondents for the survey is people who are purchase or

consuming American fast food.

3.4.2 Questionnaire

The researcher to gathering the primary data uses questionnaire, then the raw

data from the questionnaire need to be processed to become the result. The questions

or statements in the researcher questionnaire represent of every variables that

researchers used in this research. Every variable has more than one statement, and it

will be tested with the respondents. The questionnaire was invented by Sir Francis

Galton.

A questionnaire is a research instrument consisting of a series of questions

and other prompts for the purpose of gathering information from respondents.

Although they are often designed for statistical analysis of the responses, this is not

always the case. “A distinction can be made between questionnaires with questions

that measure separate variables, and questionnaires with questions that are aggregated

into either a scale or index”.

Questionnaire in this research is conducted to know what are the most factor

that affect people toward purchase decision of purchasing or consuming the American

fast food. first, for the pre-testing the questionnaire, researcher has 28 questions or

statements that represent of five X (independent) variables and one Y(dependent)

variable. In the pre-questionnaire testing, researcher distributes the questionnaire for

20 people. After processing the pre-test questionnaire, and doing a validity and

reliability test, researcher adjust the statements into 25 statements. The adjustment

needed because only the valid and reliable statements can be used for final

questionnaire. Manual questionnaire used by the researcher in this research by

distribute to the people in the research place, then the data need to be coded manually

into the Ms. Excel before processing with SPSS program.

In constructing questionnaire, the researcher uses Likert Scale to measure the

respondent answer level and Closed-Ended Question. This Likert scale method is

founded by Rensis Likert.

“When responding to a Likert questionnaire item, respondents specify their

level of agreement or disagreement on a symmetric agree-disagree scale for a series of

statements. Thus, the range captures the intensity of their feelings for a given item”.

Agreement type of statement used in the questionnaire and the respondent can

choose the answer from strongly disagree level until strongly agree level. There are

five answer for Likert scale that respondents can choose; “Strongly

Agree”,”Agree”,”Neutral”,”Disagree”, and “Strongly Disagree”. The researcher

wants to get the answer from the correspondents by using points of every answer.

Then, a closed-ended question is a question format that limits respondents with a list

of answer choices from which they must choice to answer the question. With the

closed ended question, correspondent can answer the question quickly with just

choosing the number from the Likert Scale.

Table 3.1; Likert Scale for Agreement Statements

Source; Likert Scale

Likert Scale Table for Agreement Statements

Meaning Score of Likert Scale

“Strongly Agree” 5

“Agree” 4

“Neutral” 3

“Disagree” 2

“Strongly Disagree” 1

Table 3.2 Pre-Questionnaire table

Factors Manifest

Variables Variables Measurements Scale

Age &

Life

Cycle

X1.1 Menu of American fast food is match

with my taste. Likert Scale

X1.2 I often invite my family members, to

have meal here. Likert Scale

X1.3 This fast food restaurant is great choice

when I had little time to have meal. Likert Scale

X1.4 I feel comfort to have meal here, in this

fast food restaurant. Likert Scale

Occupa-

tion

X2.1 I often to eat here while having lunch

break or free time at office Likert Scale

X2.2 I often eat here and hang in this fast

food restaurant with my business

friend.

Likert Scale

X2.3 This fast food restaurant outlet is near

with my work office. Likert Scale

X2.4 I often meet with my business clients or

clients of my work here. Likert Scale

X2.5 In my opinion, this restaurant can be a

place to meet with my client business. Likert Scale

Economic

Situation

X3.1 The price of menu that this Fast food

restaurant offered is quite affordable. Likert Scale

X3.2 I often to eat this American fast food

like this and it not affect my financial

condition.

Likert Scale

X3.3 Having meal in KFC, could show my

social class Likert Scale

X3.4 Cost incurred to eat here in comparison

to cook my own food is almost equal. Likert Scale

Life style

X4.1 I like to eat here and hanging out with

my friends here. Likert Scale

X4.2 I like to eat here with my family. Likert Scale

X4.3 I prefer to have meal outside than

cooking at home. Likert Scale

X4.4 Culinary in American fast food is one of

my hobbies. Likert Scale

X4.5 I often to use 24 hours delivery service Likert Scale

Persona-

lity &

Self

Concept

X5.1 I like the menu, taste, and variety of

food in this American fast food. Likert Scale

X5.2 This American fast food has many food

menus to offer. Likert Scale

X5.3 In my opinion, KFC is still number one

for taste and quality of food compare

to other brands.

Likert Scale

X5.4 Service given in this outlet is very good. Likert Scale

X5.5 This outlet is very clean and comfort Likert Scale

Purchase

Decision

Y1.1 I am purchasing this fast food menu

because of great taste and various

menus that match with my style.

Likert Scale

Y1.2

I am purchasing this fast food menu

because of this outlet serve a comfort

place to have meal and hanging with

my business friends.

Likert Scale


because of the affordable price offered. Likert Scale

Y1.4


because it can full fill the needs of

people lifestyle (meal with family,

hanging with friends or family).

Likert Scale

Y1.5


because this outlet has various menu,

comfort place, great facilities and good

service.

Likert Scale

Source: Construct by Researcher

3.4.3 Data Analysis

For analyzing the data, the researcher used SPSS program and Microsoft

Excel. The SPSS software version 16.0 used to facilitate researcher in processing the

data from the questionnaire. Ms. Excel 2007 versions also used by the researcher for

coding the Likert Scale data from the questionnaire then continue processing with

SPSS.

3.5 Sampling Design

To get the primary data in this research, the researcher doing a survey by

questionnaire. Determination of sample in the survey is very important because it will

affect the level of accuracy of the data and the research. The researcher using non-

probability sampling technique, non probability sampling is a method where some

elements of the population have no chance of selection and the researcher create big

sample size to make more possibility if there is representing all the different

characteristics of the respondents. For the sampling method, the researcher use

purposive sampling, purposive sampling also known as judgmental sampling, where

the researcher choose or decide the sample from population that appropriate for

conducting the research.

Researcher decided to use a method to determine the minimum sample for this

research. The method is called Slovin Method. Slovin's formula allows a researcher to

sample the population with a desired degree of accuracy and also it gives the

researcher an idea of how large his sample size needs to be to ensure a reasonable

accuracy of results. The formula of Slovin Method is shown below:

n =

n = Number of Samples

N = Number of Population

e = Error Tolerance

In this case, the population of the people who are buying or eating in the KFC

outlet in Lippo Cikarang Mall are around 120 people in a day and the error tolerance

is 5%, the number of sample is:

n =

n = 92.3

n = 93

From the calculation of the formula above, the researcher sample, consist of

93 respondents for this research.

3.6 Statistical Instrument

Before the researcher starts the final questionnaire for the research, there is a

step known as pre-test questionnaire. In the pre-test questionnaire the researcher takes

a samples in total of 20 people, to test the questionnaire before distribute to the final

samples in total of 71 respondents. After collecting the pre-test questionnaire result of

20 people, the researcher take a pre test statistics such as validity and reliability test

by using the SPSS Ver. 16.0 program.

In the pre-test questionnaire, the researcher can asses more about the

questionnaire, the respondent understanding of the question in questionnaires, clarity

about the statement in questionnaire, also in the processing of validity and reliability

test, the researcher can improve the validity and reliability of every statement in the

questionnaire.

3.6.1 Validity Test

Validity test is an important test to be conducted in the research. Before doing

a final research, there are a step of validity test to measure the validity of every

statements that researcher creates in the questionnaire. It is important for a test result

to be valid in order for to get an accurately applied and interpreted questionnaire.

The coefficient of correlation of Pearson Product Moment can be based on

actual values of X and Y. The formula is:

r =

Where, n = the number of paired observations

∑ X = the X variable summed

∑ Y = the Y variable summed

∑ X2 = the X variable squared and then summed

∑ Y2 = the Y variable squared and then summed

(∑ X)2 = the X variable summed and then squared

(∑ Y)2 = the Y variable summed and then squared

∑ XY = the sum of the product X and Y

In this research, researcher use SPSS version 16.0 to do validity testing, the result

of the validity test comes from comparison between “r” computation and “r” table.

“r” computation result comes from the SPSS calculation and “r” table comes from

“r” value of Pearson product moment which using 0.05 confidence level, and 20

respondents with the degree of freedom of 0.444 value.

Statements that in questionnaire are considered to be valid if the “r”

computation value is bigger than the value of “r” table and if the “r” computation

value is smaller than the value of “r” table, it means that the question is invalid

Table 3.3Result of Validity Test

Factors Manifest

Variables

r

Computation

r

Table Remarks

Age &

Life

Cycle

X1.1 0.613632 0.444 Valid

X1.2 0.744364 0.444 Valid

X1.3 0.83277 0.444 Valid

X1.4 0.84209 0.444 Valid

Occupa-

tion

X2.1 0.673167 0.444 Valid

X2.2 0.80974 0.444 Valid

X2.3 0.647178 0.444 Valid

X2.4 0.68674 0.444 Valid

X2.5 0.710355 0.444 Valid

Economic

Situation

X3.1 0.909161 0.444 Valid

X3.2 0.580665 0.444 Valid

X3.3 0.277165 0.444 Invalid

X3.4 0.729358 0.444 Valid

Life style

X4.1 0.833908 0.444 Valid

X4.2 0.909161 0.444 Valid

X4.3 0.738782 0.444 Valid

X4.4 0.739648 0.444 Valid

X4.5 0.071264 0.444 Invalid

Persona-

lity &

Self

Concept

X5.1 0.703796 0.444 Valid

X5.2 0.565148 0.444 Valid

X5.3 0.603821 0.444 Valid

X5.4 0.658435 0.444 Valid

X5.5 0.411876 0.444 Invalid

Purchase

Decision

Y1.1 0.671015 0.444 Valid

Y1.2 0.68893 0.444 Valid

Y1.3 0.636391 0.444 Valid

Y1.4 0.811333 0.444 Valid

Y1.5 0.860608 0.444 Valid

Source: SPPS Ver. 16.0 and Construct by Researcher

Table 3.4 Result of Validity Test

Factors Manifest

Variables

r

Computation

r

Table Remarks

Age &

Life

Cycle

X1.1 0.613632 0.444 Valid

X1.2 0.744364 0.444 Valid

X1.3 0.83277 0.444 Valid

X1.4 0.84209 0.444 Valid

Occupa-

tion

X2.1 0.673167 0.444 Valid

X2.2 0.80974 0.444 Valid

X2.3 0.647178 0.444 Valid

X2.4 0.68674 0.444 Valid

X2.5 0.710355 0.444 Valid

Economic

Situation

X3.1 0.909161 0.444 Valid

X3.2 0.580665 0.444 Valid

X3.4 0.729358 0.444 Valid

Life style

X4.1 0.833908 0.444 Valid

X4.2 0.909161 0.444 Valid

X4.3 0.738782 0.444 Valid

X4.4 0.739648 0.444 Valid

Persona-

lity &

Self

Concept

X5.1 0.703796 0.444 Valid

X5.2 0.565148 0.444 Valid

X5.3 0.603821 0.444 Valid

X5.4 0.658435 0.444 Valid

Purchase

Decision

Y1.1 0.671015 0.444 Valid

Y1.2 0.68893 0.444 Valid

Y1.3 0.636391 0.444 Valid

Y1.4 0.811333 0.444 Valid

Y1.5 0.860608 0.444 Valid


3.6.2 Reliability Test

This test is to measure if the actual questionnaire whether it is an indicator of

variables. A questionnaire is relaiable of the variable or the statements are consistent

in what is intended to measure. The researcher using SPSS software version 16.0 in

this reliability test. If the Cronbach Alpha value is more than 0.700, it means that the

questions in the questionnaire are reliable and able to be used for the second time,

third time, or more in other researches by other researchers. When the value is closer

to 1, it means that the question is more reliable, while in other side, if the value is

closer to 0, it means that the question is not reliable.

The formula of Cronbach Alpha is as below:

α =

Where,

α = Instrument reliability’s coefficient

r = mean correlation coefficient between variables

k = number of questions

The indicators for the reliability using Cronbach’s Alpha test

α > .9 Excellent

α> .8 Good

α > .7 Acceptable

α > .6 Questionable

α > .5 Poor

α < .5 Unacceptable

Table 3.5 The Result of Reliability Test


This is the result of the SPSS software in the reliability test. The researcher

gets the cronbach’s alpha value for 0.967 for 25 statements after eliminating the

Reliability Statistics

Cronbach’s

Alpha N of Items

.967 25

invalid statements. Before eliminating the invalid statements, researcher gets

Cronbach’s Alpha value for 0.961 from 28 statements.

The researcher concludes that the questionnaires result from validity and

reliability test is valid and reliable for a research study.

3.6.3 Mean score (MS) & overall mean score (OMS) Calculation

This analysis should be done in order to get the description about response

from respondents toward this problem where this analysis does the calculation per

variable or indicator (Sudijono, 2006, p.84). Calculation in this analysis based on the

formula below:

Where,

= Indicator’s average n = Amount of Respondents

Xi = Score

= Frequency

After finished with the data per indicator, next step is calculating the overall

mean score toward variables in the research. This calculation will be done based on

the formula below (Sudijono, 2006, p.48):

Where:

= Overall average

= Average per indicator

n = Amount of respondents

After finished with OMS and MS, next step is classifying the data into class

interval where this process will give description about respondent opinion toward the

variables. This process will be done based on the formula below:

i =

Where:

i = Class interval

H = Highest score in likert scale (5)

L = Lowest score in likert scale (1)

k = Amount of scale point in likert scale (5)

From the formula above, scale of interval class for this research can be

conclude as following below:

= 0.8

From the scale of interval class, interval class can be divided into:

a) 4.21 – 5.00 = Strongly agree

b) 3.41 – 4.20 = Agree

c) 2.61 – 3.40 = Average

d) 1.81 – 2.60 = Disagree

e) 1.00 – 1.80 = Strongly disagree

3.6.4 Data Classic Assumption

a. Normality

In statistics, normality tests are used to determine whether a data is well-

distribute by a normal distribution or not. According to Sunyoto, D. (2011), normality

test have to be done in order to determine whether the sample data taken from a

normally distributed population, so it can be used in parametric statistics (inferential

statistics) where this process will have great analysis of correlation and regression.

b. Multicollinearity

Multicollinearity test, the purpose is to find a correlation between independent

variables, in the regression model, the correlation between variables must not be

happened. If there is a correlation between independent variables, then it can called as

multicollinearity.

c. Autocorrelation

Autocorrelation test Aimed to test whether a linear regression model was no

correlation bullies in period t with an error in period t-1, in short, it is a mathematical

tool for finding repeating patterns. The autocorrelation can be defined in the research

by seen from the amount of the Durbin-Watson (DW) result from using SPSS

program. the indicator of DW value to evaluate autocorrelation; Durbin Watson result

below -2 means there is positive autocorrelation, Durbin Watson rate result at

between -2 to +2 means no autocorrelation and Durbin Watson result above +2 means

there is negative autocorrelation, according to Sunyoto, D. (2011).

d. Heteroscedasticity

According to Wijaya, 2011, aim is to test whether in regression model there is

differentiation of variance from one residual to the other residual or not. The possible

existence of heteroscedasticity is a major concern in the application of regression

analysis, because the presence of heteroscedasticity can invalidate statistical tests of

significance that assume that the modeling errors are uncorrelated.

3.6.5 Descriptive Analysis

Descriptive statistics is the discipline of quantitatively describing the main

features of a collection of data. Descriptive statistics aim to summarize a sample,

rather than use the data to learn about the population that the sample of data is thought

to represent. Descriptive statistics provides simple summaries about the sample and

about the observations that have been made, for example the statistic of data such as

mean, median, mode, standard deviation.

3.6.6 Multiple Regression

This test become is important since it has purpose to analyze the relationship

between independent variable and dependent variable which is become the main

problem in this research. According to Wijaya, 2011, p.91 the formula for processing

this test as following below:

Y = a + b1X1 + b2X2 + b3X3+b4X4+b5X5 +e

Where:

Y= dependent variable purchasing decision

a = Constanta

X1 = independent variable age and life cycle

X2 = independent variable occupation

X3 = independent variable economic situation

X4 = independent variable lifestyle

X5 = independent variable personality and self concept

b1 = age and life cycle regression coefficient

b2 = occupation regression coefficient

b3 = economic situation regression coefficient

b4 = lifestyle regression coefficient

b5 = personality and self concept regression coefficient

e = random error

3.6.7 Hypothesis Test

Hypothesis test used in order to know whether the total of sample in the

research has already strong enough to describe the population or not. Requirement

that used for this test is p value (sig) < α , since the researcher use α level in this

research is 5% so α = 0,05. This requirement use to reject H0 and accept H1

F Test

The aim of this test is to know whether all of independent variables (X)

simultaneously give significant effect to dependent variable (Y) or not. The criteria

that used to reject H0 and accept H1 is F computation > F table according to Sunyoto,

D (2011) and the formula to know value of F table is

F table = Fα (V1) (V2)

Where:

V1 = df numerator = amount of variables (k) – 1

V2 = df denominator = amount of respondents (n) – k

For determining the value of F computation, the formula as following below:

Where:

Fo = Value of F computation

b = Regression coefficients

X = Independent variable

S = Standard deviation of the regression coefficients

T Test

The aim of this test is to know whether each of independent variable (X) has

significant effect to dependent variable (Y) or not. The following below is the criteria

which used for this test:

a. t computation < t table, H0 Accepted, Ha Rejected

b. t computation > t table, H0 Rejected, Ha Accepted

For determining the value of t manually, it can use the formula as following

below:

Where:

= Value of t computation

= Regression coefficients

= Certain B value, depend on hypothesis

= Standard deviation of the regression coefficients

For 2 tailed test, value of α also should be divided into 2. To determine the

value of t table, the formula is t α/2 (n-k). For determining the decision for hypothesis

on this test can use the value of significance on coefficients table with the criteria:

a. If sig. < α , H0 rejected, Ha accepted

b. If sig. ≥ α, H0 accepted, Ha rejected

3.6.8 Coefficient Correlation (r) and Determination (r2)

Correlation analysis point is to find the relationship between independent

variable and dependentvariable or X factor to Y factor. Subsequently. The researcher

used correlation coefficient table according to Sudijono, A. the r will have strong

correlation between X to Y if the value is closer to 1.

Table 3.6. The correlation coefficient table

Coeficient Interval Correlation Rate

0.00 - 0.199 Very Weak

0.20 - 0.399 Weak

0.40 - 0.599 Average

0.60 - 0.799 Strong

0.80 - 1.00 Very Strong

Source : Sudijono, Correlation Coefficient Cable

The scale of r value is between 0 \< r >/ 1, where : r = 1 , it means that the influence

of dependent and independent variable are positive perfectly (if the r value is getting

closer to 1, the effect is getting stronger and more positive). r = 0, it means that there

is no correlation between dependent and independent variable.

R2 in the next column r is to know how much of dependent variable (Y) can be

explained by the independent variable (X). the rest of R square value is explaining for

another factor.

CHAPTER IV

ANALYSIS OF DATA AND INTERPETATION OF

RESULT

4.1 Descriptive Analysis

4.1.1 Data collection

In collecting the data for the research, the researcher shares 25 valid

statements to people in the KFC outlet in KFC Lippo Cikarang Mall by distributing

questionnaire, after get permission from the manager of the outlet for conducting

research in the fast food outlet. The researcher used offline system questionnaire,

means the researcher went to the outlet for distribute the questionnaire directly to the

people who are purchase or consuming the fast food.

Questionnaire distribute randomly for 93 people, according to the result of

Slovin’s calculation method, in order to get the total sample in one population, that

already explained in chapter 3. For the calculation and testing method stated in

chapter 3, researcher used SPSS Program Ver. 16.0. and Microsoft Excel.

4.1.2 Characteristic of Respondent

a. Gender of the respondents.

The figure below explain the data based on the primary data collected from the

questionnaire, the characteristic of respondent for gender for this research are 34 male

respondents or 37% and 59 female respondents or 63% of 93 people that participate in

this research who are purchasing or consuming fast food in KFC outlet at Lippo

Cikarang Mall. The respondent majority is female. They are worker, who had lunck

break, work in the Lippo Cikarang area, or mothers who take their children for meals.

31%

44%

25%

17-25 Yo 26-35 Yo > 35 Yo

37%

63%

Male Female

Figure 4.1 Gender Distribution Chart

Source: primary data, Construct by researcher

b. Age of the Respondents

The figure below explains for the characteristic of respondent based on their

age, the researcher classified the age into three groups. First, there are total of 29

respondents or 31% that have age ranged from 17 until 25 years old. Second, there are

total of 41 respondents or 44% that have age ranged from 26 until 35 years old. And

the last, there are 23 respondents or 25% have their age above than 35 years old. Since

the KFC fast food restaurant can consumed by all age people, so there are many

people that have variety age have their meal there. Majority respondents are employee

who had lunch break in KFC outlet.

4%

60%

36%

Elementary - Senior High Diploma University

Figure 4.2 Age Distribution Chart


c. Education Background of the Respondents

The figure below explains the education background of respondents in the research,

there are 4 respondents or 4% that have their education background for elementary

school until senior high school. Then, there are 33 respondents or 36% have the

education for diploma degree. Last, 56 respondents or 60% have their education for

university degree.

Figure 4.3 Education Background Distribution Chart


d. Occupation Background

The data of respondents occupation background from the questionnaire, show

us the majority of respondents have their job as an employee of a company in Lippo

Cikarang area are 49 respondents or 53%. There are students also that have their meal

in KFC restaurant are 26 respondents or 28%. Another occupation majority in “Ibu

Rumah Tangga” are 11 respondents or 12%. Last, there are also an entrepreneur

people who have their meal are 7 respondents or 7%.

28%

53%

7%

12%

Students Employee Entrepreuneur Others

49%

36%

11% 2% 2%

< 5 Million IDR 5-10 Million IDR 11-15 Million IDR

16-20 Million IDR > 20 Million IDR

Figure 4.4 Occupation Background Distribution Chart


e. Monthly Income

Figure 4.5 Monthly Income Distribution Chart


This figure explained the data collected from the questionnaire. For the

monthly income, fewer than 5 million Rupiah per month there are 46 respondents or

49%. 33 respondents or 36% have their income between 5 until 10 million Rupiah per

month. 10 respondents or 11% have income between 11 until 15 million Rupiah. 2

respondents or 2% have their income in range 16 until 20 million Rupiah per month,

and last there are 2 respondents or 2% that have their income more than 20 million

96%

4%

Yes, I do No, I don’t know

Rupiah per month. The respondents purchase decision in purchasing their meal at

KFC, indicates the economic condition for all respondents are good.

f. Respondent Awareness of Fast Food Risk

Besides knowing the characteristic of respondents, the researcher also wants to

know, are people aware for risk of health diseases caused by Fast Food? From the

questionnaire distributed to the respondents, the statement for the respondents “ I

aware of health risk by consuming fast food.”, then the result 89 respondents or 96%

knows and aware about the risk caused by consuming fast food, and 4 or 4%

respondents don’t know and don’t aware about the risk caused by consuming fast

food.

Figure 4.6 Respondent Awareness of Fast Food Risk Distribution Chart


4.1.3 Mean Score and Overall Means Score Analysis

This is the result of mean score (MS) and overall means score (OMS) analysis

through 93 respondents that participate in this research. This test purpose is to know

the response from the respondents for the agreement level to the factor, by analyzing

statements or indicators from every variable in the questionnaire. There are five

interval class that explains the response from respondents to the statements or

indicators, there are; 4.21 – 5.00 is strongly agree, 3.41 – 4.20 is agree, 2.61 – 3.40 is

average, 1.81 – 2.60 is disagree and 1.00 – 1.80 is strongly disagree.

Table 4.1 Mean Score and Overall Mean score for Age & Life Cycle

Factors Manifest

Variables Variables

Mean

Score Interval Result

Age &

Life

Cycle

X1.1 Menu of American fast

food is match with my

taste.

3.77 3.41 – 4.20 Agree

X1.2 I often invite my family

members, to have meal

here.

3.45 3.41 – 4.20 Agree

X1.3 This fast food restaurant is

great choice when I had

little time to have meal.

3.83 3.41 – 4.20 Agree

X1.4 I feel comfort to have meal

here, in this fast food

restaurant.

3.74 3.41 – 4.20 Agree

Overall Mean Score 3.70 3.41 – 4.20 Agree

Source: Primary data, Construct by Researcher

From the result MS and OMS table of age and lifecycle, we can see the 93

respondents are agree that age & lifecycle are affecting their purchasing decision in

purchasing or consuming American fast food KFC in Lippo Cikarang Mall. The

overall mean score value is 3.70 indicate that respondents are agree with the

indicators or statements.

Table 4.2 Mean Score and Overall Mean score for Occupation

Factors Manifest

Variables Variables

Mean


Occupa-

tion

X2.1 I often to eat here while

having lunch break or free

time at office

3.3 2.61 – 3.40 Average

X2.2 I often eat here and hang in

this fast food restaurant

with my business friend.

3.28 2.61 – 3.40 Average

X2.3 This fast food restaurant

outlet is near with my work

office.

3.31 2.61 – 3.40 Average

X2.4 I often meet with my

business clients or clients

of my work here.

2.75 2.61 – 3.40 Average

X2.5

In my opinion, this

restaurant can be a place

to meet with my client

business.

3.27 2.61 – 3.40 Average

Overall Mean Score 3.18 2.61 – 3.40 Average

Source: Primary data, construct by Researcher

From the table above, the respondent’s response for occupation factor that

affecting their purchase decision in purchasing the fast food are average. The overall

mean score is 3.18 which indicates the average. The average means not all

respondents are agree or disagree with the statements or in neutral condition.

Table 4.3 Mean Score and Overall Mean score for Economic Situation

Factors Manifest

Variables Variables

Mean


Economic

Situation

X3.1 The price of menu that this

Fast food restaurant

offered is quite affordable.

3.77 3.41 – 4.20 Agree

X3.2

I often to eat this American

fast food like this and it not

affect my financial

condition.

3.54 3.41 – 4.20 Agree

X3.4 Cost incurred to eat here in

comparison to cook my

own food is almost equal.

3.33 2.61 – 3.40 Average



Based on the table above, the respondents response is agree with the economic

situation can affect to their purchase decision to purchasing fastfood. The overall

mean score is 3.54 for this economic situation factor means respondents agree to this

factor.

Table 4.4 Mean Score and Overall Mean score for Lifestyle

Factors Manifest

Variables Variables

Mean


Lifestyle

X4.1 I like to eat here and

hanging out with my

friends here.

3.82 3.41 – 4.20 Agree

X4.2 I like to eat here with my

family. 3.46 3.41 – 4.20 Agree

X4.3 I prefer to have meal

outside than cooking at

home.

2.98 2.61 – 3.40 Average

X4.4 Culinary in American fast

food is one of my hobbies. 3.13 2.61 – 3.40 Average



The respondents response about lifestyle will affect their purchase\ decision is

average. This means respondents in neutral condition, agree and disagree for this

statements or factor. The table above shows the total of overall means score is 3.34,

which means average.

Table 4.5 Mean Score and Overall Mean score for Personality & Self Concept

Factors Manifest

Variables Variables

Mean


Persona-

lity &

Self

Concept

X5.1 I like the menu, taste, and

variety of food in this

American fast food.

3.98 3.41 – 4.20 Agree

X5.2 This American fast food has

many food menus to offer. 3.66 3.41 – 4.20 Agree

X5.3

In my opinion, KFC is still

number one for taste and

quality of food compare to

other brands.

3.89 3.41 – 4.20 Agree

X5.4 Service given in this outlet

is very good. 3.94 3.41 – 4.20 Agree



For personality and self-concept factor, based on the table above, respondents

are agree with this factor that personality and self concept will affect their purchase

decision in purchasing or consuming fast food. The overall mean score for this factor

is 3.86, which means the respondents are agree with the factor or statements.

Table 4.6 Mean Score and Overall Mean score for Purchase Decision

Factors Manifest

Variables Variables

Mean


Purchase

Decision

Y1.1

I am purchasing this fast

food menu because of

great taste and various

menus that match with my

style.

4.16 3.41 – 4.20 Agree

Y1.2


food menu because of this

outlet serve a comfort

place to have meal and

3.91 3.41 – 4.20 Agree

hanging with my business

friends.

Y1.3 I am purchasing this fast

food menu because of the

affordable price offered.

3.78 3.41 – 4.20 Agree

Y1.4


food menu because it can

full fill the needs of people

lifestyle (meal with family,

hanging with friends or

family).

3.92 3.41 – 4.20 Agree

Y1.5


food menu because this

outlet has various menu,

comfort place, great

facilities and good service.

4.11 3.41 – 4.20 Agree



For purchasing decision, the respondents are agree with the purchase decision

in consuming fast food. The total value of overall mean score based on the table

above is 3.97, which indicates the respondents are agree with the factor and

statements or indicators.

4.1.4 Statistical Descriptive

Table 4.7 Descriptive Statistics

Descriptive Statistics

N Range Minimum Maximum Mean

Std.

Deviation Variance

Statistic Statistic Statistic Statistic Statistic Std. Error Statistic Statistic

x1 93 10 8 18 14.80 .215 2.072 4.295

x2 93 19 6 25 15.91 .396 3.821 14.601

x3 93 10 5 15 10.75 .228 2.200 4.840

x4 93 13 7 20 13.39 .247 2.387 5.696

x5 93 9 10 19 15.25 .179 1.730 2.993

y1 93 7 16 23 19.90 .167 1.609 2.588

Valid N

(listwise) 93

Source: SPSS Program Ver.16.0

The table above is the result of descriptive statistics from the questionnaire

data, processed by SPSS program. N means total of respondents, the researcher take

93 sample of respondents. For y1, it has 7 for range, 16 for minimum, 23 for

maximum, 19.90 for mean statistic, .167 for mean std. error, 1.609 for standard

deviation and 2.588 for variance statistic. For X1, it has10 for range, 8 for minimum,

18 for maximum, 14.80 for mean statistic, .216 for mean std. error, 2.072 for standard

deviation and 4.295 for variance statistic. For X2, it has 19 for range, 6 for minimum,


deviation and 14.601 for variance statistic. For X3, it has 10 for range, 5 for

minimum, 15 for maximum, 10.75 for mean statistic, .228 for mean std. error, 2.200

for standard deviation and 4.840 for variance statistic. For X4, it has 13 for range, 7

for minimum, 20 for maximum, 13.39 for mean statistic, .247 for mean std. error,

2.387for standard deviation and 5.696 for variance statistic. For X5, it has 9 for range,

10 for minimum, 19 for maximum, 15.25 for mean statistic, .179 for mean std. error,

1.730 for standard deviation and 2.993 for variance statistic.

4.1.5 Classic Data Assumption analysis

Next analysis that researcher wants to explain is multicollinearyty test. The

result is show in the table below.

Table 4.8 Result of Collinearity test

Source; SPSS Program Ver. 16.0

Multicollinearity is a statistical phenomenon in which two or more predictor

variables in a multiple regression model are highly correlated. The researcher use

Collinearity Statistics

Tolerance VIF

.537 1.863

.572 1.748

.642 1.558

.688 1.453

.763 1.310

SPSS program to test of there is a multicollinearity in the research. According to

Sunyoto, D. (2011), the condition of variance inflation factor (VIF) must be below

than 10, alpha tolerance 10% or 0.10 then the VIF = 10. (VIF, <10). For the indicator

of tolerance, the result is must above than 10% or 0.1. The researcher concludes there

is no collinearity, since the result from the table above, VIF result is below than 10,

and the tolerance computation is above than 0.1.

This research conducted with the 93 respondents. For testing the

autocorrelation, the researcher using Durbin Watson tests from SPSS program.

Autocorrelation in the research must not happen, and the indicators for Durbin

Watson test according to Sunyoto, D,(2011) p91,

Table 4.9 Result of Durbin Watson test


positive autocorrelation occurs when the value of DW test result <-2 , autocorrelation

does not occur if the value of -2 <= DW test result <= +2, negative autocorrelation

occurs when the value of DW test result > +2. From the table above, the researcher

can concludes that autocorrelation is not happen, because the Durbin Watson test

result is 1.425

For normality test, the researcher use normal probability plot graphics and

histogram from the SPSS program. The aim of normality test is to know if the

distribution of the data is normal or not. According to Sunyoto, D. (2011), the pattern

of circle dot position must near of diagonal line in the box, and the distribution of the

data must not curved to the left or right. For the histogram, the good result must have

a good bell shape normal curve and the histogram have the highest bar. Here is the

result of normality test,

Durbin-Watson

1.425

Figure 4.7 Normality Test Probability Plots Graphic




From two figures above, the researcher concludes the data distribution in this research

is normal.

For last, last test result in multiple regressions analysis is heteroscedasticity

test. From the SPSS program, the researcher gets result of this test.

Figure 4.9 Result of Heteroscedasticity Test


From the scatter plot result above, the researcher concludes heteroscedasticity

does not happen and data can be processed and analyzed.

4.2 Multiple Regression Analysis

The researcher used multiple regression test method to know the influence of

personal factor in characteristics of consumer behavior toward people purchase

decision in purchasing or consuming the American fast food, study case in KFC the

American fast food restaurant in Lippo Cikarang Mall. After distributing the

questionnaires consist of statements or indicator for every factors to the 93 repondents

that participate in this research, the researcher got result after processing the data by

SPSS program Ver.16.0 and the result are in the table below;

Table 4.10 Result of Multiple Regression Test (Coefficients)

Source: SPSS program, ver. 16

From the result of the table above, the researcher use standardized coefficients

beta for concluding the equation for multiple regression. According to Sunyoto D.

(2011), the “a” value or Constanta value is cannot be used in this research, because

the five independent factors are not having any unit to calculate people purchase

decision. From the standardized coefficients table above, the researcher concludes the

multiple regression equation is;

Y= 0.194X1+0.200X2+0.256X3+0.083X4+0.335X5

Where:

Y = Purchase Decision

X1 = Age and Lifecycle

X2 = Occupation

X3 = Economic situation

X4 = Lifestyle

X5 = Personality and Self Concept

Coefficientsa

Model

Unstandardized

Coefficients

Standardized

Coefficients

t Sig.

Correlations

B Std. Error Beta

Zero-

order Partial Part

1 (Consta

nt) 8.819 1.042

8.461 .000

x1 .151 .069 .194 2.171 .033 .620 .227 .142

x2 .084 .036 .200 2.307 .023 .550 .240 .151

x3 .187 .060 .256 3.134 .002 .613 .318 .205

x4 .056 .053 .083 1.045 .299 .460 .111 .068

x5 .312 .070 .335 4.467 .000 .598 .432 .293

a. Dependent Variable:

y1

T-Test

For the T test, researcher used T table from computation to be compare with

the T-table. T computation is value of “t” from the SPSS coefficients table. With the

93 respondents, the researcher use T value from T table with the respondents of 91

(93-2) and with the significance level 0.05, it is 1.98638. If T computation < t table,

H0 Accepted, Ha Rejected and if t computation > t table, H0 Rejected, Ha Accepted.

From the table of coefficient table above, the researcher can conclude;

a) From the coefficients table, column of T, the T value of first factor (X1) age

and life cycle, the T value (2.171) is bigger than T table (1.986). This means

Ha1 accepted and age and life cycle factor has influence toward people

purchase decision.

b) From the coefficients table, column of T, the T value of second factor (X2)

occupation, the T value (2.307) is bigger than T table (1.986). This means Ha2

accepted and occupation factor cycle has influence toward people purchase

decision.

c) From the coefficients table, column of T, the T value of third factor (X3)

economic situation, the T value (3.134) is bigger than T table (1.986). This

means Ha3 accepted and economic situation factor has influence toward

people purchase decision.

d) From the coefficients table, column of T, the T value of fourth factor (X4)

lifestyle, the T value (1.045) is smaller than T table (1.986). This means Ha4

rejected and Ho4 accepted, thus lifestyle factor has no influence toward people

purchase decision.

e) From the coefficients table, column of T, the T value of fifth factor (X5)

personality and self-concept, the T value (4.467) is bigger than T table (1.986).

This means Ha5 rejected and personality and self-concept factor has influence

toward people purchase decision.

F-Test

Table 4.11 Result of Multiple Regression Test (ANOVA)


The ANOVA table above explains about the result of ANOVA test or F test.

The main point of F test is to know the influence between Age & Life Cycle(X1),

Occupation(X2), Economic Situation(X3), Lifestyle and Personality(X4) & Self-

concept(X5) toward people or consumer purchase decision in purchasing or

consuming the American fast food. The result from the F test, ANOVA table is F

value get 29.152 with the significance level 0.000.

Because of the significance level is (0.000) lower than the alpha value in the

research (0.05) it means, the (Ha6) is accepted and (Ho6) rejected. F table value for

this research, with 93 respondents, total of 6 variables, and significance level 0.05, is

2.32, thus the F-test computation result is 29.152. The F computation value higher

than F table value, then researcher can concludes that Age & Life Cycle, Occupation,

Economic Situation, Lifestyle and Personality & Self concept significantly affect or

have the significant correlation toward people purchasing decision in purchasing or

consuming American fast food KFC

ANOVAb

Model Sum of Squares df Mean Square F Sig.

1 Regression 149.123 5 29.825 29.152 .000a

Residual 89.006 87 1.023

Total 238.129 92

a. Predictors: (Constant), x5, x2, x3, x4, x1

b. Dependent Variable: y1

Table 4.12 Result of Multiple Regression Test (Model Summary)


The Model Summary table above explains the R and R Square. First, the result

of R-value in the table above is 0.791 or 79.1%. In the other words, correlation

relationship between the five X factors (Age & Life Cycle, Occupation, Economic

Situation, Lifestyle and Personality & Self concept) toward people purchase decision

is 79.1%. Last, the result of R Square in the table is 0.626, this means 62.6% people

purchasing decision can be explained by five X factors (Age & Life Cycle,

Occupation, Economic Situation, Lifestyle and Personality & Self concept) above.

Moreover, the rest 37.4% (100% - 62.6%), people purchasing decision can be

explained by other factors.

4.3 Interpretation of Result

In this part, the researcher will describe the result of this research about the

influence of Personal factor in characteristic of consumber behavior toward people

purchase decision in purchasing or consuming fast food KFC, study case in KFC

Lippo Cikarang Mall. Based on the ANOVA test or F-test table result, the

significance level is 0.000 lower than the alpha level 0.05 (5%), that means variable

of Age & Life Cycle(x1), Occupation(x2), Economic Situation(x3), Lifestyle and

Personality(x4) & Self-concept(X5) in this research affect or influence people

purchase decision.

Model Summaryb

Mod

el R

R

Square

Adjusted

R Square

Std. Error

of the

Estimate

Change Statistics

R Square

Change

F

Change df1 df2

Sig. F

Change

1 .791a .626 .605 1.011 .626 29.152 5 87 .000

a. Predictors: (Constant), x5, x2,

x3, x4, x1


a) Age and lifecycle (X1) toward Purchase decision (y)

From the result of multiple regression tests, the researcher can conclude; the

first factor, Age and life cycle stage (X1) has influence toward people purchase

decision. People purchase decision in purchasing goods or services are changeable

during their ages and lifetimes. From the questionnaire data, respondents are agree

with the menu of American fastfood that is match with their taste. The respondents

are also like to invite their family member to eat at American fast food KFC Lippo

Cikarang Mall. The short time break can be factor that people decide to have their

meal at this fast food restaurant and people are agreed to feel comfort to had meal in

the outlet.

b) Occupation (X2) toward Purchase decision (y)

Second factor, occupation (X2) also has influence toward people purchase

decision in this research. Occupation can determine how goods or services that people

purchase or buy. High position of a person, will make their decision for purchasing

the expensive, good, or match with their occupation. From the respondents answer,

they are all having average of opinion that occupation can affect their decision to eat

in the outlet, where average means people are agree and disagree or moderate to

assess the statements. Researcher can conclude their purchase in KFC affected by

their occupation for example the position of their jobs, outlet is near from their office,

or another factor such as follow their business mates to have meal there.

c) Economic situation (X3) toward Purchase decision (y)

Third factor, economic situation (X3), affects the people purchase decision in

consuming fast food. The basic of people purchase ability is their ability to buy with

considering their income. Income level of a person will affect their savings and

consumption. Higher income of person will also increase the level of savings and

increase their consumption. Lower income of a person will decrease their savings and

decreasing their consumption. The indicators of economic situation can affect their

decision in purchasing fast food can be seen from the respondents opinion.

Respondents are agree that price of fast food menu is affordable, the purchasing of

American fast food menu will not affect their economic condition, and the cost

occurred when cooking at home than buying fast food is almost equal.

d) Lifestyle (X4) toward Purchase decision (y)

Lifestyle (X4) or the fourth factor in this research has less influence toward

their purchase decision in purchasing American fast food KFC. Lifestyle is a part of

people, how do they live in activities, interest and opinions (AIO). Activities

dimension for example, work, hobbies, shopping, sports, interest for example, food or

culinary, fashion, entertainment, family, and opinion for example social issue,

business, and products. The researcher concludes the respondent consists of cikarang

people do not have same lifestyle for people that live in another city such as Bekasi

and Jakarta. In fact, the lifestyle between people in Cikarang is different with people

in Jakarta, this lifestyle differences caused by several factors such as, social

environment, economic background and the personality of the people. The different

lifestyle in American fast food culinary interest create a different result, so from the

result data, the lifestyle factor has less or no influence toward people purchase

decision in purchasing American fast food KFC. The different lifestyle in American

fast food culinary interest create a different result, so from the result data, the lifestyle

factor has less or no influence toward people purchase decision in purchasing

American fast food KFC.

e) Personality and self concept (X5) toward Purchase decision (y)

Last, Personality and Self-concept (X5) is the fifth factor in this research that

has influence to people purchase decision. From the data, the researcher can conclude

all respondents agree with their personal and their self-concept that influence their

purchase decision in purchasing fast food. People have different personalities and self

concept, but in this research, all of respondents have their same personality for having

their meal in American fast food KFC because of their personal reasons such as they

love to consume the American fast food especially KFC menu. Another reason for

personality and self concept is KFC restaurant has variety menu, delicious taste and

quality of food, service, etc better than another American fast food restaurant.

From the explanation above, the researcher concludes the people purchase

decision 62.6% affected by five factors above and for the individual factor. The most

dominant factor influence people purchase decision is personality and self-

concept factor(X5), it can be seen from T-test result, with the highest t computation

value (4.467) than another variables. According to Sunyoto, D. (2011), the dominant

factor can be seen from the highest result of t-test value. When consuming fast food or

often called as junk food, people must consider about the risk of health that caused by

consuming fast food. From this research, 96% of respondent knows about the health

risk but they ignores it and continue their purchasing because of the personality and

self-concept factor that most affect their purchase decision.

CHAPTER V

CONCLUSIONS AND RECOMMENDATIONS

5.1 Conclusion

Kentucky Fried Chicken is one of many quick service restaurants that sells

fast-American food menu in Indonesia, for Indonesian people KFC is still number one

to be chosen for several fast food restaurants, proof with the top brand survey in 2012.

Indonesian people love to consume this American fastfood menu. With the high risk

of health if consuming the fast food so much, mostly people are aware for the risk,

and still want consume it. There are many serious health illnesses caused by

consuming fast food. Why people want to consume it? What factors those motivate to

consume the fast food?

From the multiple regression analysis, researcher got the formula for this

research Purchasing Decision = 0.194X1+0.200X2+0.256X3+0.083X4+0.335X5. F test

result, with the F table (29.152) is higher than F computation (2.32) then all

independent factors has significant correlation toward dependent variable. T test

result, X1, X2, X3, X5 has significance correlation toward dependent variable(Y) and

X4 has not significance toward dependent variable (Y).

In this research, there are five independent variables (X) consist of 28

statements as the statement or indicator, which has 3 invalid statements and 25 valid

statements for conducting the research. From the data collection and processing via

SPSS Program, the researcher gets result for this research, the dominant factor that

affect people purchase decision is fifth factor, personality and self-concept (X5). as

already explained in the previous chapter, personality refers to the unique people

psychological charactersictics or their opinion or mindset that relatively consistent

and long lasting responde to one’s own condition. Self concept refers to people

possession then it can reflect their identities. With the personality, individual or

people wants to purchase and consume one brand or one product because they believe

with only that product or brand.

From the explanation above, the researcher concludes besides the dominant

factor that influenced people purchase decision, there are another external factors that

also influence people purchase decision. The adaptation ability for KFC Company to

adapt with Indonesian culture has an important role to get people attention for

consuming fast food, for example the addition menu of rice and Perkedel, it will

increase people interest for having meal in foreign fast food restaurants like KFC.

Besides adaption to the Indonesian culture, the bundling price for every menu that

KFC offers to customer is also important. With the affordable price, it also can

increase people interest for purchasing fast food menu.

5.2 Recommendation

From the conclusion, the researcher has several recommendations for object

study in increasing people purchase decision in purchasing or consuming fast food

KFC;

a) For factors or variables that has influence toward people purchase

decision(X1,X2,X3, and X5) KFC should maintain the strategy, plans, and

programs to keep the sales increase. As the result from this research, people

purchase decision dominantly affect by people personality and self-concept. KFC

should maintain and increase their product quality and service quality, so that

people can keep their personal reason to have fast food menu only in the KFC

than another fast food restaurants.

b) For factor or variable that has not influence toward people purchase

decision (X4), KFC should care about the lifestyle factor of Cikarang people. If it

possible, than the company can take study about learning people lifestyle in

Cikarang for increasing company sales. People’s lifestyle is different from one

place to another place; the strategy must be different for facing the different

lifestyle. For example, Cikarang people would like to hangout and have meal with

their children, to attract more customers, KFC can improve the playground area

for the customer’s children, and then the children like to play there while having

their meals.

REFERENCES

Books

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Philip Kotler & Gary Armstrong (2008), Principles of Marketing, 12th edition,

Upper Saddle River, Pearson Prentice Hall. Schiffman, L.G. & Kanuk, L.L. (2007), Consumer Behavior, 9th edition, Upper

Saddle River, N.J.: Pearson Prentice Hall. Harold Koontz &Heinz Weihrich. (2006), Essential of Management,7th edition,

Tata McGraw-Hill Education, p290. Mashlow Hierarchy Harsh V Verma. (2012), Service Marketing; Text and Cases, 2nd edition, Pearson

Education India, 2012, p277. Buying behavior. Kotler, Armstrong,Ang, Leong, Tan, Yau (2009) Principles of Marketing A Global

Perspective, First Lok Yang Road, Jurong Singapore, Pearson Prentice Hall. Paul Peter & Jerry C. Olson (2005), Consumer Behavior & Marketing Strategy 7th

edition,p5 McGraw-Hill. Given, Lisa M. (2008), The Sage encyclopedia of qualitative research methods, Los

Angeles, Calif., Sage Publications, ISBN 1-4129-4163-6. Wayne K. Hoy, (2009),p1, “Quantitative Research in Education: A Primer”, SAGE

Publications, 2009. Nicholas Walliman, (2006),p37, Social Research Methods, 1st edition, 2006, London,

SAGE Publications. Mellenbergh, G.J. (2008). Advising on Research Methods: A consultant's

companion. Huizen, The Netherlands: Johannes van Kessel Publishing. Burns, Alvin; Burns, Ronald (2008). Basic Marketing Research (2nd edition). New

Jersey: Pearson Education. pp. 245 Sudijono,A (2006). Pengantar Statistik Pendidikan. Jakarta: Raja Grafindo Persada Wijaya,Tony (2011). Cara Cepat Menguasai SPSS 19.0. Yogyakarta: Cahaya Atma Sunyoto, Danang. (2011). Analisis Regresi dan Uji Hipotesis. Yogyakarta. Center for

Academic Publishing Service.

Internet

Dietpolicy. "Junk Food." from

http://www.dietpolicy.com/diets-articles/junk-food-facts.htm.

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for-some-entrepreneurs-than-starting-a-business/.

(WHO), W. H. O. (2012, May 2012). "Obesity and overweight." From

http://www.who.int/mediacentre/factsheets/fs311/en/.

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Hohmann, D. U. (August 2006). "Quantitative Methods in Education Research."

Retrieved 30 November, 2012, from

http://www.edu.plymouth.ac.uk/resined/Quantitative/quanthme.htm

ANALYSIS OF PERSONAL FACTOR THAT AFFECTING

PEOPLE IN PURCHASING AND CONSUMING

AMERICAN FRIED CHICKEN FAST FOOD

(CASE STUDY IN KENTUCKY FRIED CHICKEN

LIPPO CIKARANG MALL)

By

Hengky Susanto

014200900071

A thesis presented to the

Faculty of Economics President University

in partial fulfillment of requirements for

Bachelor Degree of Economics Major in Management

President Univeristy

Cikarang Baru – Bekasi

Indonesia

January 2013

THESIS ADVISER

RECOMMENDATION LETTER

This thesis entitled “Analysis of Personal Factor that Affecting

People in Purchasing and Consuming American Fried Chicken Fast

Food (Case Study in Kentucky Fried Chicken Lippo Cikarang

Mall)”, prepared and submitted by Hengky Susanto 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, January 23, 2013.

Acknowledged by, Recommended by,

Irfan Habsjah, MBA. CMA Purwanto, ST, MM

Head of Management Thesis Advisor

Study program

PANEL OF EXAMINERS

APPROVAL SHEET

The Panel of Examiners declared that the thesis entitled “Analysis

of Personal Factor that Affecting People in Purchasing and

Consuming American Fried Chicken Fast Food (Case Study in

Kentucky Fried Chicken Lippo Cikarang Mall)” that was submitted

by Hengky Susanto majoring in International Business from the Faculty

of Economic was assessed and approved to have passed the oral

examinations on Tuesday, February 12th 2013.

Ir. Yunita Ismail, M.Si

Chair – Panel of Examiners

Irfan Habsjah, MBA. CMA

Examiner II

Purwanto, ST, MM

Examiner III

DECLARATIONOF ORIGINALITY

I declare that this thesis, entitled “Analysis of Personal Factor

that Affecting People in Purchasing and Consuming American Fried

Chicken Fast Food (Case Study in Kentucky Fried Chicken Lippo

Cikarang Mall)” is, to the best of my knowledge and belief, an original

piece of work that has not been submitted, either in whole or in part, to

another university to obtain a degree.

Cikarang, Indonesia, January 23, 2013

Hengky Susanto

ABSTRACT

The objective of this research is to analyze the personal factor in characteristics of

consumer behavior that affecting people in purchase and consume KFC. This research

case study is in KFC outlet in Lippo Cikarang Mall. This research shows that

consuming fast food or as known as junk food has risk of health disease. There are

five variables or factors in this research to be analyzed, and the dominant factors are

perosnalitirs (X5) and the weakest is Lifestyle (X4). This research using quantitative

research method and its conducted based on consumer behavior theory, focusing on

personal factor in consumer behavior characteristics and purchase decision. The data

were obtained by doing observation and distributing questioner to 93 respondents. For

processing the data from questionnaire, the researcher using SPSS (Statistic Product

and Service Solution) software version 16.0 with several test; validity test, reliability

test, F test, T test, multiple regression analysis. From the SPSS program multiple

regression result, X5 or personalities and self concept is the dominant factor

influencing purchase decision and X4 is non dominant or has no influence toward

purchase decision. The coefficient determinant (R Square) on this test is 62.6% means

that independent variables can describe dependent variable about 62.6%. F-Test in

this research show that independent variables simultaneously give influence to

dependent variable with significance level 0,00 and F value 29,2. For T-test result,

shows that independent variables or factor X1 (0.33), X2 (0.23), X3 (0.002), X5

(0.000) has influence partially because of the significance value below 0.05. For X4

(0.299) with the significance value above than 0.05, means X4 has not significance

influence toward purchase decision and for dominant factor in this research that

affecting dependent variable Y is X5 (Personality and Self-concept factor).

Keyword: Age and Lifecycle, Occupation, Economic Situation, Lifestyle, Personality

and Self-concept, Purchase decision

ACKNOWLEDGEMENT

Thank you Lord! Thank you Jesus! Thank you for the guiding, blessing while

writing this thesis then I can finish writing this thesis. Without your great blessing, I

can’t finish this thesis Lord! This thesis is to fulfill the requirements for finishing

bachelor degree in economic faculty of President University. I also want to say thank

you very much for;

a) My beloved parents Papa, Mama, and my brother Benny for supporting me

in writing this thesis. Thank you for your pray and bless papa, mama.

b) My best friends Bram, Eko, Martin, Anthony, Bernard, Adit, Willy, Andre,

Sucing, Najib, Koji, Pao, Irene, and the others, thank you for the support

and with our hard work in doing this thesis, we all can finish this thesis.

You guys are the best.

c) Mr. Purwanto, as my thesis advisor. Thank you, Sir, for your great and

wonderful guidance that you give to me during writing this research. thank

you for your advices and other supports.

d) Thank you very much for Mrs. Maria Ulfah, as the manager of KFC outlet

in Lippo Cikarang Mall. Thank you mam, for your guidance and

permission for conducting this research in your outlet.

I realized this research is still has lacking and not perfect, I openly accept for

every comments and suggestions for make this research better. Last, I hope this

research will give benefits for those who needs.

Bekasi, 23 January 2013

Hengky Susanto

TABLE OF CONTENTS

THESIS ADVISER RECOMMENDATION LETTER..............................................ii

PANEL OF EXAMINERS APPROVAL SHEET...................................................iii

DECLARATION OF ORIGINALITY.........................................................................iv

ABSTRACT...........................................................................................................................v

ACKNOWLEDGEMENT.................................................................................................vi

TABLE OF CONTENT.....................................................................................................vii

LIST OF TABLES..............................................................................................................x

LIST OF FIGURES.........................................................................................................xi

I. INTRODUCTION

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

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

1.2.1 Products……………………………………………………………………7

1.2.2 Vision and Mission…………………………………………………………8

1.2.3 KFC in Lippo Cikarang Mall……………………………………………….8

1.3. Problem Identified…………………………………………………………...…10

1.4. Statement of Problem……………..……………………………………………11

1.5. Research Objectives……………………………………………………………12

1.6. Significance of Study…………………………………………………………..12

1.7. Theorythical Framework……………………………………………………….14

1.8. Scope and Limitation…………………………………………………………...15

1.9. Assumption and Hypothesis…...……………………………………………….15

1.10. Definition of Term…………………………………………………………… 17

1.11. Chapter outline………………………………………………………………..18

II. LITERATURE REVIEW

2.1. Consumer behavior ……………………………………………………………….19

2.2. Characteristics of consumer behavior ……………………………………………... 20

2.2.1 Cultural factor …………………………………………………………….21

2.2.2 Social factor……………………………………………………………... 22

2.2.3 Psychological factor ……………………………………………………...23

2.2.4 Personal factor…………………………………………………………… 24

2.3. Types of buying decision behavior ………………………………………………...26

2.4. Buyer decision process …………………………………………………………….28

III. RESEARCH METHODOLOGY

3.1. Research methodology ……………………………………………………………..30

3.2. Research framework ……………………………………………………………….31

3.3. Research time and place …………………………………………………………...32

3.4. Research instrument ………………………………………………………………..32

3.4.1 Survey…………………………………………………………………… 32

3.4.2 Questionnaire …………………………………………………………….33

3.4.3 Data analysis ……………………………………………………………...36

3.5 Sampling design ……………………………………………………………………36

3.6 Statistical instruments ………………………………………………………………37

3.6.1 Validity …………………………………………………………………..38

3.6.2 Reliability ………………………………………………………………...40

3.6.3 Mean score and Overall mean score ……………………………………....42

3.6.4 Data classic assumption………………………………………………….. 44

3.6.5 Descriptive analysis……………………………………………………… 45

3.6.6 Multiple regression ……………………………………………………….45

3.6.7 Hyphothesis test ………………………………………………………….46

3.6.8 Coefficient Correlation (r) and Determination (r2)……………...………47

IV. ANALYSIS OF DATA AND INTERPRETATION OF RESULTS

4.1 Descriptive analysis ………………………………………………………………...49

4.1.1 Data Collection …………………………………………….……………..49

4.1.2 Charateristics of respondents ……………………………………………..49

4.1.3 Mean score and Overall means score analysis…………………………… 53

4.1.4 Statistical descriptive ……………………………………………………..57

4.1.5 Data classic assumption ………………………………………..…………58

4.2 Multiple Regression Analysis ………………………………………………………61

4.3 Interpretation of result 65

V. CONCLUSION AND RECOMMENDATION

5.1 Conclusion.........................................................................................................................69

5.2 Recommendation..............................................................................................................70

LIST OF REFERENCES …………………………………………………………….71

APPENDICES ………………………………………………………………………...73

LIST OF TABELS

Table 3.1 Likert scale …………………………………………………………...…..34

Table 3.2 Pre-questionnaire …………………………………………………...…….35

Table 3.3 Result of validity and reliability test ……………………………………...39

Table 3.4 Valid statements…………………………………………………………..40

Table 3.5 Reliability test result …………………………………………………...…41

Table 3.6 Correlation coefficients ………………………………………………..…48

Table 4.1 Ms & Oms Age and Life cycle ………………………………...…………54

Table 4.2 Ms & Oms Occupation ………………………………………...…………54

Table 4.3 Ms & Oms Economic Condition ………………………………...……….55

Table 4.4 Ms & Oms Lifestyle ……………………………………………...………55

Table 4.5 Ms & Oms Personality and self concept ……………………………...….56

Table 4.6 Ms & Oms Purchase decision ………………………………………...….56

Table 4.7 Descriptive statistics ………………………………………………..……57

Table 4.8 Result of Colinearity test ……………………………………………..….59

Table 4.9 Result of DW test ……………………………………………………..…59

Table 4.10 Result of Multiple Regression test (Coefficients) …………………..….62

Table 4.11 Result of Multiple Regression test (ANOVA) ……………………..…..64

Table 4.10 Result of Multiple Regression test (Model Summary) ……………..…..65

LIST OF FIGURES

Figure 1.1 Total of KFC sales international…………………………………………..3

Figure 1.2 Total of KFC sales Indonesia …………………………………………….4

Figure 1.3 Top brands 2012 ………………………………………………………….5

Figure 1.4 Total sales of KFC outlet in Lippo Cikarang Mall ……………………….9

Figure 1.5 Total customers of KFC outlet in Lippo Cikarang Mall ………………….9

Figure 1.6 Theoretical framework …………………………………………………..14

Figure 2.1 Consumer behavior ……………………………………………………...21

Figure 2.2 Maslows hierarchy of needs ……………………………………………..23

Figure 2.3 Four types of buyer decision behavior …………………………………..26

Figure 2.4 Five steps of buyer decision process …………………………………….28

Figure 3.1 Research framework …………………………………………………….31

Figure 4.1 Gender Distribution chart ……………………………………………….49

Figure 4.2 Age Distribution chart …………………………………………………..50

Figure 4.3 Education background Distribution chart ……………………………….51

Figure 4.4 Occupation Distribution chart …………………………………………..52

Figure 4.5 Monthly income Distribution chart ……………………………………..52

Figure 4.6 Respondents awareness of fast food risk distribution chart ……………..53

Figure 4.7 Normality test P. Plot ……………………………………………………60

Figure 4.8 Histogram normality test ………………………………………………...60

Figure 4.9 Result of heteroscedasticity test …………………………………………61

CHAPTER I

INTRODUCTION

1.1 Background of Study

In this modern era, where the globalization in every sector of business and

modernization in every sector in our lives, make our lives become more complex than

before. In Indonesia the developing country where many foreign or local investor

invest their business to be run in our country, as the result we can see many foreign

companies that run their business in Indonesia. With the total population of two

hundred fifty nine million nine hundred forty thousand eight hundred fifty seven

(259.940.857) on last December 2010, Indonesia has a good potential in developing

business.

The good economic progress also encourage people to just not fulfill they

basic need or primary, but their need also for the secondary need like lifestyle, and the

worst is lifestyle can encourage people to become more consumptive. Lifestyle

according to Kotler, 2011 is person’s pattern of living. Lifestyle change people living

behavior. People eat out home, go to fast food restaurant in late night, take a chit-chat

with their mates late night in coffee café are the examples of lifestyle in nowadays.

Indonesia is a country with the big population, what is the most important of

people need? People needs a food as their basic need for Physiological (Mashlow

hierarchy of need, 2006), then food is become one of their primary needs. A

traditional list of immediate "basic needs" is food (including water), shelter, and

clothing. Thus, the culinary business is the appropriate business to be developed. In

fact, there are so many restaurants business with the local or foreign food.

As the globalization consequences, foreign investor or foreign business comes

to Indonesia. The investor can market their business with the franchising their

business so the business can be spread to every area or place. According to Mitchell,

2012,“Franchising is a business model in which many different owners share a single

brand name. A parent company allows entrepreneurs to use the company's strategies

and trademarks; in exchange, the franchisee pays an initial fee and royalties based on

revenues”. Nowadays franchise business is developing, we can see there are so many

same brands of business spread in many places. With the high need of money as the

capital, franchise takes less work to get started, because the franchiser provides

anything the franchisee needs (Nembhard, 2011).

The advance of technology, and modernization in every sector of life,

including the cooking process to produced the primary needs of people, food. It can

make easier the processing the raw material or even to cook, for producing foods is no

longer time needed, no more workers required and more simple to cook. Nowadays

available also, there are freeze foods, or preheated foods which the easiest way to

consume, just heat the freeze foods.

Through the big population, developing of the culinary business with

franchising and advances if technologies, then exist the fast food restaurant business

with the franchising model. There are so many types of fast food in Indonesia, the

well-known fast food are American fast food restaurants, Japanese fast food

restaurants and Indonesian fast food restaurants. The American fast food restaurants

has many outlets, especially in the big city, it spreads in every mall or shopping

centre. “Fast food is the term given to food that can be prepared and served very

quickly, typically the term refers to food sold in a restaurant or store with preheated or

precooked ingredients, and served to the customer in a packaged form for take-

out/take-away: (Merriam–Webster dictionary).

The foreign fast food, with the adaption to Indonesian cultures, they provide

what Indonesian people like to eat, so they just not provide their original foods. We

can find many variety of fast food when we go to the mall in big cities then go to the

food court area; there are so many fast food restaurants with many people takes their

meal there. The short time for prepare the foods, easy to eat, good taste of the foods,

and affordable food price for specific foods, fast food becoming first choice for

people in big city who has limited time for lunch break and eats, since their time is for

working in all days. Teens, adults, child, or old people loves to eat this fast food,

sometimes they eat with the whole family in the restaurants, or have delivery services

to their home this kind of activities is part of modern lifestyle.

7,3947,830

8,2308,554

8,920

2007 2008 2009 2010 2011

Sales in Billion (in $ USD)

One of many top brands for American fast food is Kentucky Fried Chicken

(KFC). KFC fast food internationally holds by Yum! Brands. Yum! Brands has

38,000 restaurants in over 110 countries and territories. The company brands are

Kentucky Fried Chicken, Pizza Hut, Taco bell, and Wing Street. Those are the fast-

food restaurant brands by Yum! Brand, in other word, KFC doesn’t have any group

companies, but the owner of KFC, Yum! Brands has the group companies like Taco

Bell, Pizza Hut, and Wing Street. As an additional info, A&W and Long John Silver

has dropped from Yum! Brands in last 2011.

Figure 1.1: Total of KFC Sales International, in billion USD.

Source: Yum! Brands 2011 Financial report

The graphic above explain the increasing of total KFC international sales, it

shows the total sales of KFC worldwide including KFC in Indonesia. The increasing

of total sales from 2007 until 2011 show us that fast food industry have a good

potential in year to year. In 2007, KFC international got $7,394 billion, in 2008 KFC

international got $7,840 billion, in 2009 KFC international got $8,230 billion, in 2010

KFC international got $8,554 billion, and in 2011 KFC got $8,920 billion for total

sales.

Seeing this big opportunities to develop the fast food restaurants, to fulfill

what the people in big cities need, then Kentucky Fried Chicken the American fast

1,589,643

2,022,633

2,454,360

2,913,605

3,316,800

2007 2008 2009 2010 2011

Sales in Million Rupiah

food held their business in Indonesia. In Indonesia, Kentucky Fried Chicken retail

business the owner of the franchise is PT Fastfood Indonesia Tbk. established by

Gelael Group in 1978. Same as the international Yum!, KFC with the only one owner

of franchise PT. Fastfood Indonesia Tbk. doesn’t have any group companies in

Indonesia. Various varieties of products, makes Indonesian people like to consume

KFC. From the latest information (tribunkaltim.co.id, 2012), KFC Indonesia has 425

and have target become 440 outlets this year in 95 cities in Indonesia to serve the

consumer. KFC Indonesia focus on fried chicken based food, besides fried chicken;

they also provide another side dishes, beverages and dessert.

Figure 1.2: Total Sales of KFC Indonesia 2007 – 2011, in Million Rupiah

Source: PT. Fast Indonesia Tbk. Financial Report 2011

The graphic above explains the sales of KFC in Indonesia increasing from

2007 until 2011. KFC Indonesia has the total of 403 outlets and KFC gets 3.3

quintillion rupiah in 2011 increasing from 2010 just 2.9 quintillion rupiah

(Neraca.co.id, 2012). This increasing sale indicates that Indonesian people have great

interest in purchasing and consuming fast food.

From the Top Brands survey in Indonesia for 2012, Kentucky Fried chicken is

still becomes the top brand of fast food restaurants with the indexing rate of 61.9%

and for the second place is Mc Donald’s with 20.1% of index rate. This Top Brand

2012 survey held in 8 cities: Bandung, Jakarta, Makassar, Medan, Semarang,

Surabaya, Balikpapan, and Pekanbaru. The random samples in each city are 400

persons. The total number of random respondents surveyed is 3250, and the total

number of booster respondents is 850. This survey informs us which brands are

known very well for Indonesian people. Here is the result of Top Brand survey 2012;

Figure 1.3: The Result of Top Brand 2012, category in Retail business of

Fast Food Restaurants.

Source: Top Brand 2012 survey

The result from the survey above explains how Indonesian people still take

KFC as the top of brand in fast food restaurants. KFC Indonesia with the many of

outlets that KFC Indonesia has, we can find it easily everywhere. Even in every big

city and place or areas that have so many people, there will be outlets for KFC. People

can consume this fast food with the many varieties of products whenever they want,

the consumer also can freely consume the products, almost all people with the

different ages and economic condition can consume fast food. But nowadays, for

eating in the fast food restaurants like KFC is not a special thing, it becomes a modern

lifestyle when the family especially the mother doesn’t need to cook and prepared

foods, they just come to the outlets then order the food, eat there with the husband and

their children.

Another reasons that people to consume fast food is the lack of time that

people get in daily works, people usually do anything in an expressway to fulfill what

they need. Working from the morning until afternoon then at night makes people do

not have time to prepare their food then they just go to American fast food like KFC.

Fast food becomes the solution of people who do not have enough time for prepare

their foods. With the 24 hour delivery services (for some outlets), people have their

decision to consuming fast food. With the good economic background, the higher

price when consuming fast food it will not become a matter. People also do not take

attention with the low nutrients ingredients, what they want is just the delicious taste

that can fulfill their hunger. In short, there are many disadvantages for consuming fast

food but people still oftenly consume it.

In this research, the researcher research based on the consumer behavior

theory by Kotler and Armstrong. Consumer behavior when they decide to buy or

purchase something of they want, is based on the several factor that affect the

consumer for purchase it. There are cultural factor, social factor, personal factor, and

psychological factor. This research is taken for personal factor, then personal factor

consist of several factors such as age, occupation, economic situation, lifestyle,

personality and self-concept. In this research, the researcher is to analyze of personal

factor that motivate people toward to their purchase decision in purchasing and

consuming American fast food Kentucky Fried Chicken (KFC).

1.2 Company Profile

As the franchise holder of Kentucky Fried Chicken (KFC) Indonesia, the

Gelael Family founded PT Fast Food Indonesia Tbk., in 1978. In 1979, the company

opens the first KFC fast food restaurant outlet in October at Melawai Street in Jakarta.

With the entry of Salim Group in 1990 as one of the major shareholders, Company's

expansion initiatives were reinforced and in 1993, the Company became publicly

listed in Indonesia Stock Exchange to further enhance the development growth. The

present majority shareholding of 80% is distributed 43.84% to PT Gelael Pratama,

owned by the Gelael Group and 35.84% to PT Megah Eraraharja, a company under

the Salim Group; while the Public and Cooperatives share the minority (20%)

PT. Fast Food Indonesia Tbk., was given the license to use KFC brand by its

present franchisor, Yum! Asia Franchise Pte Ltd, which is part of Yum! Restaurants

International (YRI). YRI itself is a company under Yum! Brands Inc, a publicly-listed

company in the U.S. and the franchise owner of four other well-known brands, i.e.

Pizza Hut, Taco Bell, A&W, and Long John Silvers.

The first outlet has successful business and it start the way for the opening of

more additional outlets in Jakarta. Also, the outlets expansion to every regional

coverage including other major cities in Indonesia, like Bandung, Semarang,

Surabaya, Medan, Makassar, and Manado. By the many outlets that KFC opens, it

makes KFC become dominant brand in fast food franchise business in Indonesia.

Now KFC has 425 outlets of restaurants to serve Indonesian people in 95 cities in

Indonesia.

1.2.1 Products

KFC has main products in fried chicken, Colonel's Original Recipe and Hot &

Crispy Chicken. KFC products grouped into several categories as Menu Goceng,

Menu Praktis, and package meals. Menu Goceng category, which means are all the

menu items price at Rp5,000 each and not including tax. There are more than 10

menu items providing real value and the most “sell well” items are Mocha Float and

OR Burger Deluxe. To add variety to this Goceng menu category, menu selections

were changed due the changing preferential taste of customers.

On the other hand, Menu Praktis category includes menu items that are easy to

take away and can be consume easily, like Colonel Burger, Twister, Colonel

Yakiniku, etc.

To provide customers with good value, package meals (meal saving

combinations) and value meals, like Super Panas and KFC Attack are continuously

offered. Supplementing these core menu items are products catering to local market

taste, like Potato Croquette (Perkedel), Rice (Indonesian staple food), Salad, and KFC

Soup. KFC also offers various choices of beverages such as soda or non-soda drinks.

Also in 2011, the Company continuously expanded KFC Coffee as a channel

of service in all free-standing outlets, means the outlets has independent building not

joining another mall or other building. KFC restaurant outlets by providing a wide

range of quality coffee menu items, hot and cold, served in a separate counter with

designated seating for coffee lovers. To attract customers during lean day-part of

operation, the Company also has Krushers beverage menu item with a wide choice of

flavors.

1.2.2 Vision and Mission of PT. Fast Food Indonesia Tbk.

Vision:

Maintain KFC’s market leadership and always be the No. 1 brand in the

QSR(Quick Service Restaurants) business in Indonesia by being the most modern

and favorite restaurant in terms of product, value, service, and assets.

Mission:

Strengthening KFC brand image through innovative strategies and ideas,

improving customers’ dining experience by continuously and consistently providing

quality products, services, and assets suited to customers’ changing needs and taste.

1.2.3 KFC in Lippo Cikarang Mall Profiles

This research conducts in scope of KFC Mall Lippo Cikarang, the outlet in

Lippo Cikarang Mall was established on 10th June 1995. The KFC outlet in Lippo

CIkarang Mall has three main services of sales, first there is mother store or main

store in the first floor and in second floor KFC has a small kiosk to serve another

customer, and the last there are home delivery service. The manager of KFC outlet in

Lippo Cikarang Mall is Mrs. Maria Ulfah, with the assistant manager with Mr.

Wasyanto. There are also three shift leaders Mrs. Ameliana, Mr. Teodorus Seru, and

Mr. Ahmad Suseno. In this October, KFC outlet in Lippo Cikarang Mall has 42

people of employees including in mother store, kiosk and home delivery.

These graphics explain the total sales and total customers of KFC outlet in

Lippo Cikarang Mall period of January until October 2012.

951,456,278

793,983,438

937,453,647

855,605,480

976,991,893

1,011,468,685

1,045,533,243

1,342,716,427

943,588,177

943,396,157

Total Sales of Mother store, Kiosk and Home Delivery (IDR)

19448

18072

20313

2044420978 21089 20866

23870

2091019205

0

5000

10000

15000

20000

25000

30000

People

Figure 1.4: Total Sales of KFC Outlet in Mall Lippo Cikarang,



Figure 1.5: Total Customers of KFC Outlet in Mall Lippo Cikarang,



1.3 Problem Identified

Based from the explanation above, consuming fast food as the part of modern

lifestyle for many people who are busy with their activities and have no time to

prepare foods, so they just take fast food to eat and don’t realize how harmful fast

food for our body. As we know those varieties of fast food are well known as a junk

food. Junk food refers to fast foods which are easy to make and easy to consume, zero

in nutrition value, have only high fat to cause an illness (dietpolicy.com, 2012).

Salted snack foods, candy, gum, most sweet desserts, fried fast food and

carbonated beverages are some of the major junk foods. Fast food that we often to eat

like fried chicken, or another pre heated food, also another drinks with zero nutrition

but has high level of sugar or another chemical ingredient such as coloring and taste

maker can called as a junk food. Comparing the advantages of fast food is faster serve

time and cheap price of food than the disadvantages is more dangerous and harmful

for our body. The problem occurs when consuming fast food is health desease and

monetary problem for several people.

It is become the fact when consuming fast food, it will increase the illness or

diseases risk caused by fast food. The most common disease or serious health problem

are overweight or obesity, diabetic and high cholesterol level to have heart and liver

illness (WHO.int, 2012). Overweight or obesity are both labels for ranges of weight

that are greater than what is generally considered healthy for a given height.

“Overweight and obesity are the fifth leading risk for global deaths. At least

2.8 million adults die each year as a result of being overweight or obese. In addition,

44% of the diabetes burden, 23% of the ischemic heart disease burden and between

7% and 41% of certain cancer burdens are attributable to overweight and obesity”.

Overweight also closely related with high level of fat or cholesterol then it can cause

the possibility of coronary heart disease because the accumulation of plaque of

cholesterol or fat in blood vessel.

Diabetic caused by consuming fast food with high level of sugar (WHO.int,

2012). When consuming fast food usually people have their dessert with another

sweet food or drinks. This sweet food or drinks have high sugar level that potential

causing diabetic disease. This high level of sugar also affects to the obesity disease.

Diabetes increases the risk of heart disease and stroke. 50% of people with diabetes

die of cardiovascular disease.

The dangerous health risk caused by consuming fast food, there are still many

people like to consume it and makes it to become as part of their modern style. People

for sure know the consequence of consuming junk food, but they do not pay attention

to that harmful risk.

When they purchase or buy the product, several factors affected the consumer

behavior; there are cultural factor, social factor, personal factor, and psychological

factor. In this research, researcher takes the personal factor with age and lifecycle,

occupation, lifestyle, personality as the factors. The problem is to find the dominant

factor based on the personal factor that motivates people to consume American fast

food Kentucky Fried Chicken and from the personal factors, researchers want to find

any correlation between the factors and consumer decision to consume fast food.

1.4 Statement of Problem

Based on the explanation above and preliminary research, the statement of

problem for this study is:

a) Do personal factors (age, occupation, economic situation, lifestyle and

personalities) affect the people motivation toward to people purchase

decision in purchasing and consuming fast food?

b) What is the dominant factor or variable toward to people purchase decision

in purchasing and consuming fast food in the following factors of personal:

Age, occupation, economic situation, lifestyle and personalities?

1.5 Research Objectives

a) To analyze the influence of variables in the following factors of personal:

motivation Age, occupation, economic situation, lifestyle and personalities

that affect people purchase decision in purchasing or consuming fastfood.

b) To identify the dominant factor or variable that motivates people for

consuming fast food.

1.6 Significance of Study

a. Theoritical Significance

For develop the science study, especially for the economics field study,

this research is conduct. In addition, the researcher hopes this research can

give the contribution and can be used as the reference for the consumer

behavior study and the development of fast food business, so that the fast

food business investors can know more about consumer behavior

especially for the personal factor.

b. Practical Significance

For PT. Fast Food Indonesia Tbk., as the holder of KFC franchising in

Indonesia

To contribute the additional information about the consumber behavior

especially on the personal factor that motivate people to comsume this

American fast food. Based on the result of this research, they can make

new program or another strategies in market their products so the

consumer will purchase or consume more.

c. Academic Significance

For President University campus students or communities

This research can be references for continue studying about consumer

behavior and also can provide any information needed for knowing more

about American fast food Kentucky Fried Chicken.

Characteristics of Consumer Behavior

1.7 Theoretical Framework

Figure 1.6 Theoretical Framework

Kotler and Armstrong, 2008

Cultural

- Culture

- Sub Culture

- Social Class

Social

- Reference groups

- Family

- Roles and status

Personal

- Age and Life cycle (X1)

- Occupation(X2)

- Economic situation(X3)

- Life style(X4)

- Personalities and self

concept (X5)

Purchase Decision (y)

Psychological

- Motivation

- Perception

- Learning

- Belief and attitudes

1.8 Scope and Limitation

Based on the aim of the research is that the researcher wants to know, what is

the dominant factor from the personal factor on consumer behavior, that motivate

people to consume American fast food Kentucky Fried Chicken KFC. The researcher

choose KFC, because it is the one of many culinary business industry that serve

American type fast food specially for fried chicken also, the modern lifestyle

nowadays, take people to consume fast food than cooking for their food. This research

is conduct as a case study for KFC outlet in Lippo Cikarang Mall. The researcher

chooses outlets in Cikarang, is for the affordable place to take the research and this

outlet have many customer that consist of young, adults, and old ages people.

Consumer behavior affected from several factors; social, cultural, personal, and

psychological factor, the researcher limited the scope of the research is just on the

personal factor.

There are many factors from characteristics of consumer that affect person to

consume or decide purchasing goods, the researcher chooses personal factor in

consumer behavior that motivate people to consume the American fast food because

the factors in personal such as age, occupation, economic situation, lifestyle and

personalities are the most interesting factor to be researched. Age are the factor that

influenced person to buy some products, because the maturity level in thinking

influenced person to purchase and consume the products, people also nowadays think

how to adjust what kind of goods that they purchase and consume based on their

occupation and economic situation. To consume or purchase the non-cheap goods,

they must think about their economic situation in condition of manage their outcome

to be lower than their income. Lifestyle and personalities also influenced how they

lives in this modern era, so it will affect what products or brands that they purchase.

1.9 Assumptions and Hypothesis

According to what researcher stated on statement of problem of this research,

the researcher take the hypothesis as the follow:

Null Hypothesis (Ho1): Age & Life Cycle factor has no influence toward to people


Alternate Hypothesis (Ha1): Age & Life Cycle factor has influence toward to people


Null Hypothesis (Ho2): Occupation factor has no influence toward to people


Alternate Hypothesis (Ha2): Occupation factor has influence toward to people


Null Hypothesis (Ho3): Economic situation factor has no influence toward to people


Alternate Hypothesis (Ha3): Economic situation factor has influence toward to people


Null Hypothesis (Ho4): Lifestyle factor has no influence toward to people purchase


Alternate Hypothesis (Ha4): Lifestyle factor has influence toward to people purchase


Null Hypothesis (Ho5): Personalities factor has no influence toward to people


Alternate Hypothesis (Ha5): Personalities factor has influence toward to people


Null Hypothesis (Ho6): All Personal factors in consumer behavior have no influence


Alternate Hypothesis (Ha6): All Personal factors in consumer behavior have influence


1.10 Definition of Term

Fast Food: Type of food that can be served quickly. Usually as a pre-cooked food

or freeze food. this food was designed for ready availability, use, or

consumption and with little consideration given to quality. There are so

many types of fast food for example American fast food such as fried

chicken, hamburgers and pizza. This fast food is available in outlets or

fast food restaurants.

Junk Food: Also known as fast food, fast food is junk food. it can be called as junk

food because the ingredients or the food nutrition in the fast food has

very low level of nutrition. Generally, Junk food has high in calories

level but low in nutritional content or value.

Franchise: Is model of business that giving a license for a branch holder. People

can open their business under another companies name or brands to

sell their products, there was a fee to buy the franchising license.

Obese: Known as overweight or obesity is a disease caused by many factors,

but the prior caused by the fast food. By consuming a high calories

level and low nutrition level of food. Obese identical with other serious

diseases, such as high cholesterol level and heart disease.

Diabetic A disease that can be caused by consuming fast food, another side

dishes or beverages that contains high level of sugar. Majority people

get diabetic types – 2, it caused by negative or poor lifestyle that

people have.

1.11 Chapter Outline

Chapter I Introduction

This chapter consists of background of study, Kentucky Fried Chicken

Indonesia company profiles, problem identified, statement of problem,

research objectives, significance of study, theoretical framework, scope

limitations, assumption and hypothesis, definition of term and last, chapter

outline.

Chapter II Literature Review

This chapter consists of consumer behavior theory, characteristics of consumer

behavior, types of buying decision and last, buying decision process.

Chapter III Research Methodology

This chapter consists of research methodology theory, research framework,

research time and place, research instruments, sampling design, descriptive

analysis, statistical instruments.

Chapter IV Analysis of Data and Interpretation of Result

This chapter consists of descriptive analysis, multiple regression analysis, and

interpretation of result. Descriptive analysis consist of several descriptive

result such as characteristics of respondents, mean score and overall mean

score analysis, statistical descriptive and classic data assumption.

Chapter V Conclusion and Recommendation

This chapter consists of conclusion and several recommendations for

theoretical, practical and academicals significance.

CHAPTER II

LITERATURE REVIEW

2.1 Consumer Behavior

According to Kuester, Sabine (2012,p110) “Consumer behaviour is the study

of individuals, groups, or organizations and the processes they use to select, secure,

and dispose of products, services, experiences, or ideas to satisfy needs and the

impacts that these processes have on the consumer and society”.

The definition of consumer buyer behavior according Kotler & Armstromg

(2008, p122); “Consumer buyer behavior refers to the buying behavior of final

consumers – individuals and households who buy goods and services for personal

consumption”.

The definition of consumer behavior according to Schiffman & Kanuk 2007;

“Consumer behavior is defined in many ways but it can be accepted as 'the behavior

that consumers display in searching for, purchasing, using, evaluating and disposing

of products and services that they expect will satisfy their needs”.

This consumer behavior from the definitions above, can be explained also as

study for a process of how consumer or people have their decision to select, purchase,

or consuming goods or services based on their needs and get the satisfaction from the

purchasing decision. According to Peter, J. Paul 2005; consumer behaviors involves

the thoughs and feelings people experience and actions they performed in

consumption processes, it also includes all the things in the environment that

influences thouthgt, feelings and actions”

Not all people will buy the same products; they have their own thinking

before deciding to purchasing goods or services. Consumer behavior refers to the

selection, purchase and consumption of goods and services for the satisfaction of their

wants. There are different processes involved in the consumer behavior. Initially the

consumer tries to find what commodities they would like to consume, then they

selected any goods or services that they think is the best. After selecting the products,

the consumer makes an estimate of the available money that they can spend.

Lastly, the consumer analyzes the prevailing prices of commodities and takes

the decision about the goods that they will purchase. The all consumers combine into

consumer market, the definition of consumer market according principles of

marketing a global perspective book is “all the individuals and households who buy or

acquire goods and services for personal consumptions.”

Consumer behavior deals with why people want to buy and why people do not

want to buy the products. Consumer purchases are influenced by the characteristic of

the consumer behavior such as cultural factor, social factor, personal factor, and

psychological factor.

2.2 Characteristics of Consumer Behavior

There are five characteristics of consumer behavior, which influence strongly

people buying decision process according to Kotler and Armstrong, 2008. There are;

a. Cultural factor

b. Social Factor

c. Personal Factor

d. Psychological Factor

Figure 2.1 Factors Influencing Consumer Behavior

Source: Kotler and Armstrong, 2008

2.2.1 Cultural Factors

Cultural factors have strong influence to consumer behavior. According to Kotler and

Armstrong, 2008, there are three factors inside cultural factors; culture, subculture,

and social class.

a. Culture

Culture is the set of basic values, perceptions, wants, and behaviors

learned by a member of society from family and other important institution.

This culture must be learned in order to know the consumer behavior. The

influence of culture on buying behavior varies from country to country.

Characteristics of consumer behavior

Cultural

• Culture

• Sub

Culture

• Social

Class

Social

• Reference

groups

• Family

• Roles and

status

Personal

• Age and Life

cycle

• Occupation

• Economic

situation

• Life style

• Personalities and

self concept

Psychological

• Motivation

• Perception

• Learning

• Belief and

attitudes

Purchase Decision

b. Subculture

From culture, it contains subculture, subculture consists groups of people with

shared value system based on common life experience and situations. Subculture

includes nationalities, religions, racial groups, and geographic regions.

c. Social Class

Every society has a social class structure. Social classes are society’s relatively

permanent and ordered divisions in a society whose members share similar

values, interests, and behaviors. Social class not only determined from single

factor such as income, but also measured combination of occupation, income,

education, wealth, and other variables.

2.2.2 Social Factors

According to Kotler and Armstrong, 2008, a consumer’s behavior also is

influenced by social factors, such as reference groups, family, and roles and status.

a. Reference Group

Grioups that have direct influence and to which a person belongs are called

membership group, membership group serve as direct or indirect points of comparison

or reference in forming a person attitudes and behavior. When a person decides to buy

a product, reference of groups gives recommendation and influence that person mind

to buy or do not buy the products, so it will affect the consumer behavior.

b. Family

Family members can strongly influence buyer behavior. The family is the

most important consumer buying organization in society. The members of the family

can give influence when the person in the family wants to purchase some products or

services.

c. Roles and status

People usually choose the products appropriate to their roles and status. For example,

person in the family is a father, and in the organization is a vice president, then in

company he will buy clothes that reflects his role and status in the organization as the

vice president.

2.2.3 Psychological Factors

According to Kotler and Armstrong, 2008, the four majors of psychological

factors that influence the consumer behavior for buying decision, there are

motivation, perception, learning, and belief and attitudes.

a. Motivation

The level of motivation also affects the buying behavior of customers. Every

person has different needs such as physiological needs, biological needs, social needs

etc. Therefore, a need becomes a motive when it is more pressing to direct the person

to seek satisfaction. Motive is a need that is sufficiently pressing to direct the person

to seek satisfaction of the need.

Another theory for human need, by Maslow from the book “essential

management” by Harold Koontz & Heinz Weihrich. (2006). Abraham Maslow

explained the hierarchy of needs why people driven by particular of needs at

particular times. From the most pressing at the bottom to the last pressing at the top.

Figure 2.2 Maslow’s Hierarchy of Needs

Source: Harold Koontz & Heinz Weihrich. (2006)

b. Perception

Perception is the process of people selecting, organizing and interpreting

information in a way to produce a meaningful picture of theworld. Three different

perceptual processes are selective attention, selective distortion and selective

retention.

c. Learning

Learning describes changes in an individual’s behavior arising from the experience.

Learning occurs through the interplay of drives, stimuli, cues, response, and

reinforcement.

d. Belief and attitudes

Customer possesses specific belief and attitude towards various products. Beliefs and

attitudes make up brand image and affect consumer buying behavior. Belief is a

descriptive thought a person has about something, may be based on the

knowledge,opinion, or faith and may or may not carry an emotional charge. Attitudes

describes a person relatively consistent evaluations, feelings, and tendencies toward

object or idea.

2.2.4 Personal factors

According to Kotler and Armstrong 2008, a buyer decision is influenced by

personal characteristics such as the buyer age and life cycle stage, occupation,

economic situation, life style, and personality and concept. This research concern

about personal factors and here is the theory of consumer buying behavior based on

personal factor.

a. Age and Life Cycle Stage

People change the goods and services that they buy over the lifetimes. Taste in food,

clothes, furniture, and recreation are often age related. There will be different from

young age person taste to old age person taste, this different based on the age. Life

cycle stage for example from the single, married, have a family, unmarried, or another

cycle stage will affect the consumer behavior.

There are five segments of life age;the youth segment includes customer younger than

18. Getting started consists customer aged 18 to 35, who are going through first

experience in their lifes for example graduated, first job, first marriage. Builders

customer aged 35 to 50 are in the peak of earnings years. Accumulators aged 50 to 60

worry about saving for retirement and wisely investing. The last is preservers,

customer aged above 60 want to maximize their retirement income to maintain a

desired style.

b. Occupation

A person occupation affects the good or services that people bought and the

occupation of a person has significant impact on his buying behavior. For example the

white collar who works in a company as the manager, they will buy clothes that suit

for their occupation, not the informal but formal clothes and another example a

marketing manager of an organization will try to purchase business suits, whereas a

low level worker in the same organization will purchase rugged work clothes.

c. Economic Condition

Consumer economic situation has great influence on his buying behavior. If the

income and savings of a customer is high then he will purchase products that are more

expensive. On the other hand, a person with low income and savings will purchase

inexpensive products. Marketers of income sensitive goods watch trends in personal

income, savings, and interest rates. The economic condition of personal and the

current economic issue will affect customer’s decision before buying goods and

services. The personal economic condition of the cardholders cover; spendable

income, savings and assets, debts, borrowing power, and also attitudes toward

spending and saving.

d. Lifestyle

Lifestyle is a person’s pattern of living as expressed in their psychographics, it

also can determined as a person pattern of living as expressed in their Activities,

Interest, and Opinion. People who are coming from same culture, or subculture, social

class, occupation may have different lifestyle. It involves measuring consumer’s

major AIO dimensions. Activities such as work, hobbies, shopping, sports, and social

events, Interest such as food, fashion, family, and recreation, Opinions such as about

themselves, social issue, business, and products. Lifestyle capture more than the

person’s social class or personality and it profiles a person pattern of acting and

interacting in the world.

e. Personality and Self Concept

Each person’s distinct personality influences his or her buying behavior. Personality

refers to the unique psychological characteristics that lead to relatively consistent and

lasting response to one’s own environment. Personality changes from person to

person, time to time and place to place. Therefore it can greatly influence the buying

behavior of customers. Actually, Personality is not what one wears; rather it is the

totality of behavior of a man in different circumstances. It has different characteristics

such as: dominance, aggressiveness, self-confidence etc which can be useful to

determine the consumer behavior for particular product or service. Many marketers

use a concept related ro personality, a person self-concept also called as self image.

The basic self concept premise is that people possessions contribute to and reflect

their identities.

2.3 Types of Buying decision Behavior

Henry Assael theory, according the book by Harsh V. Verma, Service

Marketing; Text and Case, (2012) proposed four types of decision making behavior

depending upon of buyer involvement and perceived differentiation among brands.

The four types are complex buying, dissonance reducing, variety seeking and habitual

buying behavior.

Figure 2.3; Four types of buying decision behavior

Source; Henry Assael theory, by Harsh V. Verma 2012.

Complex buying

behavior

Variety seeking

behavior

Dissonance reducing

buying behavior

Habitual buying

behavior

High Involvement Low involvement

Significant differences

between brands

Few differences between

brands

a. Complex Buying Behavior

According to Kotler and Armstrong 2008, complex buying behavior is a

consumer in situations characterized by high consumer involvement in a purchase and

significant perceived differences among brands. According to Harsh V. Verma 2012,

this mode called as complex because of the full length of the process and high rigor

involved. There are three step sequence of complex buying behavior, first developing

belief about the product, then attitudes, and then making a thoughtful purchase choice.

b. Dissonance-Reducing Buying Behavior

Dissonance reducing behavior occurs when consumers are highly involved

with an expensive, infrequent, or risky purchase, but see little difference among

brands. After the purchase, consumer will experience post purchase dissonance. The

customer may experience dissonance after the purchase because of unmet

expectations or hearing good about unchosen alternatives products. Unlike complex

buying, where recognition and affect develop before purchase, it occurs at post-

purchase stage in dissonance reducing behavior.

c. Habitual Buying Behavior

Consumer buying behavior in situation characterized by low consumer

involvement and few significant perceived brand differences. According to Harsh V.

Verma 2012, habitual buying signifies a situation when the decision-making is

replaced by habit. Habit is kind of behavior where little or no cognitive activity is

involved. Consumer appear to have low involvement with most low cost, frequently

purchased products.

d. Variety Seeking Buying Behavior

Consumer undertakes variety seeking buying behavior in situation

characterized by low consumer involvement but significant perceived brand

differences. For example, consumers often do a lot of brand switching, from one

product then another product because of during the consumption they didn’t get any

satisfaction, or simply to try something different. Brand switching occurs for the sake

of variety rather than because of dissatisfaction. This situation combines significant

perceived differences among brands with low customer involvement or lower buying

significance.

2.4 Buyer Decision Process

According to Kotler and Armstrong 2008, people in decide to purchase the

products there are five stage in buyer decision. There are; need recognition,

information search, evaluation of alternatives, purchase decision, and post purchase

behavior.

Figure 2.4; Five steps in buyer decision process

Source: Philip Kotler & Gary Armstrong (2008).

1. Need recognition

In this first step, person or consumer realize and discover the needed. The

buying process starts with need recognition in other word, buyer recognizers a

problem or need. the need can be started by internal stimuli when one of the person’s

normal needs for example hunger, thirst to a level high enough to become drive and

for the external stimuli for example, if one of the person thinking about buying car

after they discussed with another people.

2. Information search

At this level, a person simply becomes more receptive to information about a

product. The stage of information search is the stage of buyer decision process in

Need Recognition

Information Search

Evaluation of alternatives

Purchase decision

Postpurchase behavior

which the consumer is aroused to search for more information; the consumer may

simply heightened attention or may go into active information search. Consumers can

obtain information from any of several sources that include personal sources,

commercial sources, public sources and experiential sources. Personal sources such as

family, friends, neighbors, and acquaintances. Commercial sources such as

advertising, websites, dealers, packing, and display. Public sources such as mass

media, consumer rating organization, internet searches. Experiental sources for

example handling and examining for using the products.

3. Evaluation of Alternatives

Consumer makes final judgment through comparing the alternatives. Evaluation of

alternatives is the stage of the buyer decision process in which the consumer uses

information to evaluate brands in the choice set.

4. Purchase Decision

After the evaluation, consumer ranks brands and forms purchase intention. Consumer

may form an intention to buy the most preferred brand or the buyer’s decision about

which brand to purchase. In purchase decision, there are two factors between purchase

intention and purchase decision. First is an attitude of others, other people that

important to the customer could change the decision of purchasing one product. the

second factor is an unexpected situational factors, the consumer may form a purchase

intention based on expected income, expected prize, and product benefits or an

unexpected events may change the purchase decision.

5. Post purchase behavior

The stage of the buyer decision process in which the consumers takes further

action after purchase, based on the satisfaction or dissatisfaction of the products that

they purchase. The consumer can be categorized to satisfied or dissatisfied after a

purchasing from the relationship between the consumers expectation and products

perceived performance. If the product falls from customer’s expectation, it will make

the customer disappointed. If it meets expectation then the customer is satisfied, if it

exceeds expectation then the consumer is delighted.

CHAPTER III

RESEARCH METHODOLOGY

3.1 Research Methodology

Research methodology according to Merriam Webster dictionary is the

analysis of the principles of methods, rules, and postulates employed by a discipline

in the research, research methodology also applied as the systematic study of methods

that are, can be, or have been applied within a discipline in the research. In the

research, there are two majors research methodology; qualitative and quantitative

analysis. In this research, the researcher use quantitative analysis method for the

method of research. According to Given & Lisa M., 2008, quantitative research is

“Quantitative research refers to the systematic empirical investigation of social

phenomena via statistical, mathematical or computational techniques. Quantitative

data is any data that is in numerical form such as statistics, percentages, etc.”

Measurement and statistics are central to quantitative research because they

are the connections between empirical observation and mathematical expression of

relations. Quantitative researcher concerned with the development and testing

hypotheses and the generation of models and theories that explain behavior (Wayne

K. Hoy, p1, 2009).

According to Nicholas Waliman (2006), “Quantitative techniques rely on

collecting data that is numerically based and amenable to such analytical methods as

statistical correlations, often in relation to hypothesis testing”.

The researcher uses quantitative method because it provides the fundamental

connection between empirical observation and mathematical expression of

quantitative relationships. Quantitative research methods were originally developed in

the natural sciences to study natural phenomena (Hohmann U., 2006).

3.2 Research Framework

Research framework consist of the process of the research that researchers takes,

the figure below explains the steps or process in conducting this research.

Figure 3.1 Research Framework

Source: Construct by researcher

Statement of Problem

Literature Review

Pre-Questionnaire

Validity and Reliability Test

Processing Data, Valid and Reliable?

Yes

No

Final Questionnaire

Data Transformation and Processing Data

Analyzing Data

Conclusion

Using Ms. Excel

2003

Using SPSS

Program, Ver. 16.0

Survey

3.3 Research Time and Place

The research was conducted in Lippo Cikarang Mall, the respondents are

people who are purchasing and consuming American fast food. In this research, the

researcher takes a study case or the limitation of the research in Kentucky Fried

Chicken, the fast food or quick service restaurants outlet in Lippo Cikarang Mall.

First, the preliminary research or to gathering data for pre-questionnaire was conduct

at November 2012, and using the questionnaire methods. After the researcher finishes

the pre-test questionnaire and testing a validity and reliability test, the researcher

conducted the final Questionnaire in December 2012 by using the same method of

Questionnaire.

3.4 Research Instruments

In this research, the researcher collected the data from the surveys to the

manager of the outlet, literature review, internet research, and questionnaires as the

primary data. To analyze the collected data, researcher used SPSS program version

16.0, and Microsoft Excel program.

3.4.1 Survey

In this research, before doing the pre-questionnaire test, the researcher seeks

information, problems, and the phenomena of any issue that related to the researcher

major, management, concentration in International Business. Researcher takes this

problem of analysis of consumer behavior especially in personal factor that influence

people toward purchase decision or consuming the American fast food, and in this

case, the researcher take a case study in Lippo Cikarang Mall. As mentioned above,

the researcher takes target of respondents for the survey is people who are purchase or

consuming American fast food.

3.4.2 Questionnaire

The researcher to gathering the primary data uses questionnaire, then the raw

data from the questionnaire need to be processed to become the result. The questions

or statements in the researcher questionnaire represent of every variables that

researchers used in this research. Every variable has more than one statement, and it

will be tested with the respondents. The questionnaire was invented by Sir Francis

Galton.

A questionnaire is a research instrument consisting of a series of questions

and other prompts for the purpose of gathering information from respondents.

Although they are often designed for statistical analysis of the responses, this is not

always the case. “A distinction can be made between questionnaires with questions

that measure separate variables, and questionnaires with questions that are aggregated

into either a scale or index”.

Questionnaire in this research is conducted to know what are the most factor

that affect people toward purchase decision of purchasing or consuming the American

fast food. first, for the pre-testing the questionnaire, researcher has 28 questions or

statements that represent of five X (independent) variables and one Y(dependent)

variable. In the pre-questionnaire testing, researcher distributes the questionnaire for

20 people. After processing the pre-test questionnaire, and doing a validity and

reliability test, researcher adjust the statements into 25 statements. The adjustment

needed because only the valid and reliable statements can be used for final

questionnaire. Manual questionnaire used by the researcher in this research by

distribute to the people in the research place, then the data need to be coded manually

into the Ms. Excel before processing with SPSS program.

In constructing questionnaire, the researcher uses Likert Scale to measure the

respondent answer level and Closed-Ended Question. This Likert scale method is

founded by Rensis Likert.

“When responding to a Likert questionnaire item, respondents specify their

level of agreement or disagreement on a symmetric agree-disagree scale for a series of

statements. Thus, the range captures the intensity of their feelings for a given item”.

Agreement type of statement used in the questionnaire and the respondent can

choose the answer from strongly disagree level until strongly agree level. There are

five answer for Likert scale that respondents can choose; “Strongly

Agree”,”Agree”,”Neutral”,”Disagree”, and “Strongly Disagree”. The researcher

wants to get the answer from the correspondents by using points of every answer.

Then, a closed-ended question is a question format that limits respondents with a list

of answer choices from which they must choice to answer the question. With the

closed ended question, correspondent can answer the question quickly with just

choosing the number from the Likert Scale.

Table 3.1; Likert Scale for Agreement Statements

Source; Likert Scale

Likert Scale Table for Agreement Statements

Meaning Score of Likert Scale

“Strongly Agree” 5

“Agree” 4

“Neutral” 3

“Disagree” 2

“Strongly Disagree” 1

Table 3.2 Pre-Questionnaire table

Factors Manifest

Variables Variables Measurements Scale

Age &

Life

Cycle

X1.1 Menu of American fast food is match

with my taste. Likert Scale

X1.2 I often invite my family members, to

have meal here. Likert Scale

X1.3 This fast food restaurant is great choice

when I had little time to have meal. Likert Scale

X1.4 I feel comfort to have meal here, in this

fast food restaurant. Likert Scale

Occupa-

tion

X2.1 I often to eat here while having lunch

break or free time at office Likert Scale

X2.2 I often eat here and hang in this fast

food restaurant with my business

friend.

Likert Scale

X2.3 This fast food restaurant outlet is near

with my work office. Likert Scale

X2.4 I often meet with my business clients or

clients of my work here. Likert Scale

X2.5 In my opinion, this restaurant can be a

place to meet with my client business. Likert Scale

Economic

Situation

X3.1 The price of menu that this Fast food

restaurant offered is quite affordable. Likert Scale

X3.2 I often to eat this American fast food

like this and it not affect my financial

condition.

Likert Scale

X3.3 Having meal in KFC, could show my

social class Likert Scale

X3.4 Cost incurred to eat here in comparison

to cook my own food is almost equal. Likert Scale

Life style

X4.1 I like to eat here and hanging out with

my friends here. Likert Scale

X4.2 I like to eat here with my family. Likert Scale

X4.3 I prefer to have meal outside than

cooking at home. Likert Scale

X4.4 Culinary in American fast food is one of

my hobbies. Likert Scale

X4.5 I often to use 24 hours delivery service Likert Scale

Persona-

lity &

Self

Concept

X5.1 I like the menu, taste, and variety of

food in this American fast food. Likert Scale

X5.2 This American fast food has many food

menus to offer. Likert Scale

X5.3 In my opinion, KFC is still number one

for taste and quality of food compare

to other brands.

Likert Scale

X5.4 Service given in this outlet is very good. Likert Scale

X5.5 This outlet is very clean and comfort Likert Scale

Purchase

Decision


because of great taste and various

menus that match with my style.

Likert Scale

Y1.2


because of this outlet serve a comfort

place to have meal and hanging with

my business friends.

Likert Scale


because of the affordable price offered. Likert Scale

Y1.4


because it can full fill the needs of

people lifestyle (meal with family,

hanging with friends or family).

Likert Scale

Y1.5


because this outlet has various menu,

comfort place, great facilities and good

service.

Likert Scale


3.4.3 Data Analysis

For analyzing the data, the researcher used SPSS program and Microsoft

Excel. The SPSS software version 16.0 used to facilitate researcher in processing the

data from the questionnaire. Ms. Excel 2007 versions also used by the researcher for

coding the Likert Scale data from the questionnaire then continue processing with

SPSS.

3.5 Sampling Design

To get the primary data in this research, the researcher doing a survey by

questionnaire. Determination of sample in the survey is very important because it will

affect the level of accuracy of the data and the research. The researcher using non-

probability sampling technique, non probability sampling is a method where some

elements of the population have no chance of selection and the researcher create big

sample size to make more possibility if there is representing all the different

characteristics of the respondents. For the sampling method, the researcher use

purposive sampling, purposive sampling also known as judgmental sampling, where

the researcher choose or decide the sample from population that appropriate for

conducting the research.

Researcher decided to use a method to determine the minimum sample for this

research. The method is called Slovin Method. Slovin's formula allows a researcher to

sample the population with a desired degree of accuracy and also it gives the

researcher an idea of how large his sample size needs to be to ensure a reasonable

accuracy of results. The formula of Slovin Method is shown below:

n =

n = Number of Samples

N = Number of Population

e = Error Tolerance

In this case, the population of the people who are buying or eating in the KFC

outlet in Lippo Cikarang Mall are around 120 people in a day and the error tolerance

is 5%, the number of sample is:

n =

n = 92.3

n = 93

From the calculation of the formula above, the researcher sample, consist of

93 respondents for this research.

3.6 Statistical Instrument

Before the researcher starts the final questionnaire for the research, there is a

step known as pre-test questionnaire. In the pre-test questionnaire the researcher takes

a samples in total of 20 people, to test the questionnaire before distribute to the final

samples in total of 71 respondents. After collecting the pre-test questionnaire result of

20 people, the researcher take a pre test statistics such as validity and reliability test

by using the SPSS Ver. 16.0 program.

In the pre-test questionnaire, the researcher can asses more about the

questionnaire, the respondent understanding of the question in questionnaires, clarity

about the statement in questionnaire, also in the processing of validity and reliability

test, the researcher can improve the validity and reliability of every statement in the

questionnaire.

3.6.1 Validity Test

Validity test is an important test to be conducted in the research. Before doing

a final research, there are a step of validity test to measure the validity of every

statements that researcher creates in the questionnaire. It is important for a test result

to be valid in order for to get an accurately applied and interpreted questionnaire.

The coefficient of correlation of Pearson Product Moment can be based on

actual values of X and Y. The formula is:

r =

Where, n = the number of paired observations

∑ X = the X variable summed

∑ Y = the Y variable summed

∑ X2 = the X variable squared and then summed

∑ Y2 = the Y variable squared and then summed

(∑ X)2 = the X variable summed and then squared

(∑ Y)2 = the Y variable summed and then squared

∑ XY = the sum of the product X and Y

In this research, researcher use SPSS version 16.0 to do validity testing, the result

of the validity test comes from comparison between “r” computation and “r” table.

“r” computation result comes from the SPSS calculation and “r” table comes from

“r” value of Pearson product moment which using 0.05 confidence level, and 20

respondents with the degree of freedom of 0.444 value.

Statements that in questionnaire are considered to be valid if the “r”

computation value is bigger than the value of “r” table and if the “r” computation

value is smaller than the value of “r” table, it means that the question is invalid

Table 3.3Result of Validity Test

Factors Manifest

Variables

r

Computation

r

Table Remarks

Age &

Life

Cycle

X1.1 0.613632 0.444 Valid

X1.2 0.744364 0.444 Valid

X1.3 0.83277 0.444 Valid

X1.4 0.84209 0.444 Valid

Occupa-

tion

X2.1 0.673167 0.444 Valid

X2.2 0.80974 0.444 Valid

X2.3 0.647178 0.444 Valid

X2.4 0.68674 0.444 Valid

X2.5 0.710355 0.444 Valid

Economic

Situation

X3.1 0.909161 0.444 Valid

X3.2 0.580665 0.444 Valid

X3.3 0.277165 0.444 Invalid

X3.4 0.729358 0.444 Valid

Life style

X4.1 0.833908 0.444 Valid

X4.2 0.909161 0.444 Valid

X4.3 0.738782 0.444 Valid

X4.4 0.739648 0.444 Valid

X4.5 0.071264 0.444 Invalid

Persona-

lity &

Self

Concept

X5.1 0.703796 0.444 Valid

X5.2 0.565148 0.444 Valid

X5.3 0.603821 0.444 Valid

X5.4 0.658435 0.444 Valid

X5.5 0.411876 0.444 Invalid

Purchase

Decision

Y1.1 0.671015 0.444 Valid

Y1.2 0.68893 0.444 Valid

Y1.3 0.636391 0.444 Valid

Y1.4 0.811333 0.444 Valid

Y1.5 0.860608 0.444 Valid


Table 3.4 Result of Validity Test

Factors Manifest

Variables

r

Computation

r

Table Remarks

Age &

Life

Cycle

X1.1 0.613632 0.444 Valid

X1.2 0.744364 0.444 Valid

X1.3 0.83277 0.444 Valid

X1.4 0.84209 0.444 Valid

Occupa-

tion

X2.1 0.673167 0.444 Valid

X2.2 0.80974 0.444 Valid

X2.3 0.647178 0.444 Valid

X2.4 0.68674 0.444 Valid

X2.5 0.710355 0.444 Valid

Economic

Situation

X3.1 0.909161 0.444 Valid

X3.2 0.580665 0.444 Valid

X3.4 0.729358 0.444 Valid

Life style

X4.1 0.833908 0.444 Valid

X4.2 0.909161 0.444 Valid

X4.3 0.738782 0.444 Valid

X4.4 0.739648 0.444 Valid

Persona-

lity &

Self

Concept

X5.1 0.703796 0.444 Valid

X5.2 0.565148 0.444 Valid

X5.3 0.603821 0.444 Valid

X5.4 0.658435 0.444 Valid

Purchase

Decision

Y1.1 0.671015 0.444 Valid

Y1.2 0.68893 0.444 Valid

Y1.3 0.636391 0.444 Valid

Y1.4 0.811333 0.444 Valid

Y1.5 0.860608 0.444 Valid


3.6.2 Reliability Test

This test is to measure if the actual questionnaire whether it is an indicator of

variables. A questionnaire is relaiable of the variable or the statements are consistent

in what is intended to measure. The researcher using SPSS software version 16.0 in

this reliability test. If the Cronbach Alpha value is more than 0.700, it means that the

questions in the questionnaire are reliable and able to be used for the second time,

third time, or more in other researches by other researchers. When the value is closer

to 1, it means that the question is more reliable, while in other side, if the value is

closer to 0, it means that the question is not reliable.

The formula of Cronbach Alpha is as below:

α =

Where,

α = Instrument reliability’s coefficient

r = mean correlation coefficient between variables

k = number of questions

The indicators for the reliability using Cronbach’s Alpha test

α > .9 Excellent

α> .8 Good

α > .7 Acceptable

α > .6 Questionable

α > .5 Poor

α < .5 Unacceptable

Table 3.5 The Result of Reliability Test


This is the result of the SPSS software in the reliability test. The researcher

gets the cronbach’s alpha value for 0.967 for 25 statements after eliminating the

Reliability Statistics

Cronbach’s

Alpha N of Items

.967 25

invalid statements. Before eliminating the invalid statements, researcher gets

Cronbach’s Alpha value for 0.961 from 28 statements.

The researcher concludes that the questionnaires result from validity and

reliability test is valid and reliable for a research study.

3.6.3 Mean score (MS) & overall mean score (OMS) Calculation

This analysis should be done in order to get the description about response

from respondents toward this problem where this analysis does the calculation per

variable or indicator (Sudijono, 2006, p.84). Calculation in this analysis based on the

formula below:

Where,

= Indicator’s average n = Amount of Respondents

Xi = Score

= Frequency

After finished with the data per indicator, next step is calculating the overall

mean score toward variables in the research. This calculation will be done based on

the formula below (Sudijono, 2006, p.48):

Where:

= Overall average

= Average per indicator

n = Amount of respondents

After finished with OMS and MS, next step is classifying the data into class

interval where this process will give description about respondent opinion toward the

variables. This process will be done based on the formula below:

i =

Where:

i = Class interval

H = Highest score in likert scale (5)

L = Lowest score in likert scale (1)

k = Amount of scale point in likert scale (5)

From the formula above, scale of interval class for this research can be

conclude as following below:

= 0.8

From the scale of interval class, interval class can be divided into:

a) 4.21 – 5.00 = Strongly agree

b) 3.41 – 4.20 = Agree

c) 2.61 – 3.40 = Average

d) 1.81 – 2.60 = Disagree

e) 1.00 – 1.80 = Strongly disagree

3.6.4 Data Classic Assumption

a. Normality

In statistics, normality tests are used to determine whether a data is well-

distribute by a normal distribution or not. According to Sunyoto, D. (2011), normality

test have to be done in order to determine whether the sample data taken from a

normally distributed population, so it can be used in parametric statistics (inferential

statistics) where this process will have great analysis of correlation and regression.

b. Multicollinearity

Multicollinearity test, the purpose is to find a correlation between independent

variables, in the regression model, the correlation between variables must not be

happened. If there is a correlation between independent variables, then it can called as

multicollinearity.

c. Autocorrelation

Autocorrelation test Aimed to test whether a linear regression model was no

correlation bullies in period t with an error in period t-1, in short, it is a mathematical

tool for finding repeating patterns. The autocorrelation can be defined in the research

by seen from the amount of the Durbin-Watson (DW) result from using SPSS

program. the indicator of DW value to evaluate autocorrelation; Durbin Watson result

below -2 means there is positive autocorrelation, Durbin Watson rate result at

between -2 to +2 means no autocorrelation and Durbin Watson result above +2 means

there is negative autocorrelation, according to Sunyoto, D. (2011).

d. Heteroscedasticity

According to Wijaya, 2011, aim is to test whether in regression model there is

differentiation of variance from one residual to the other residual or not. The possible

existence of heteroscedasticity is a major concern in the application of regression

analysis, because the presence of heteroscedasticity can invalidate statistical tests of

significance that assume that the modeling errors are uncorrelated.

3.6.5 Descriptive Analysis

Descriptive statistics is the discipline of quantitatively describing the main

features of a collection of data. Descriptive statistics aim to summarize a sample,

rather than use the data to learn about the population that the sample of data is thought

to represent. Descriptive statistics provides simple summaries about the sample and

about the observations that have been made, for example the statistic of data such as

mean, median, mode, standard deviation.

3.6.6 Multiple Regression

This test become is important since it has purpose to analyze the relationship

between independent variable and dependent variable which is become the main

problem in this research. According to Wijaya, 2011, p.91 the formula for processing

this test as following below:

Y = a + b1X1 + b2X2 + b3X3+b4X4+b5X5 +e

Where:

Y= dependent variable purchasing decision

a = Constanta

X1 = independent variable age and life cycle

X2 = independent variable occupation

X3 = independent variable economic situation

X4 = independent variable lifestyle

X5 = independent variable personality and self concept

b1 = age and life cycle regression coefficient

b2 = occupation regression coefficient

b3 = economic situation regression coefficient

b4 = lifestyle regression coefficient

b5 = personality and self concept regression coefficient

e = random error

3.6.7 Hypothesis Test

Hypothesis test used in order to know whether the total of sample in the

research has already strong enough to describe the population or not. Requirement

that used for this test is p value (sig) < α , since the researcher use α level in this

research is 5% so α = 0,05. This requirement use to reject H0 and accept H1

F Test

The aim of this test is to know whether all of independent variables (X)

simultaneously give significant effect to dependent variable (Y) or not. The criteria

that used to reject H0 and accept H1 is F computation > F table according to Sunyoto,

D (2011) and the formula to know value of F table is

F table = Fα (V1) (V2)

Where:

V1 = df numerator = amount of variables (k) – 1

V2 = df denominator = amount of respondents (n) – k

For determining the value of F computation, the formula as following below:

Where:

Fo = Value of F computation

b = Regression coefficients

X = Independent variable

S = Standard deviation of the regression coefficients

T Test

The aim of this test is to know whether each of independent variable (X) has

significant effect to dependent variable (Y) or not. The following below is the criteria

which used for this test:

a. t computation < t table, H0 Accepted, Ha Rejected

b. t computation > t table, H0 Rejected, Ha Accepted

For determining the value of t manually, it can use the formula as following

below:

Where:

= Value of t computation

= Regression coefficients

= Certain B value, depend on hypothesis

= Standard deviation of the regression coefficients

For 2 tailed test, value of α also should be divided into 2. To determine the

value of t table, the formula is t α/2 (n-k). For determining the decision for hypothesis

on this test can use the value of significance on coefficients table with the criteria:

a. If sig. < α , H0 rejected, Ha accepted

b. If sig. ≥ α, H0 accepted, Ha rejected

3.6.8 Coefficient Correlation (r) and Determination (r2)

Correlation analysis point is to find the relationship between independent

variable and dependentvariable or X factor to Y factor. Subsequently. The researcher

used correlation coefficient table according to Sudijono, A. the r will have strong

correlation between X to Y if the value is closer to 1.

Table 3.6. The correlation coefficient table

Coeficient Interval Correlation Rate

0.00 - 0.199 Very Weak

0.20 - 0.399 Weak

0.40 - 0.599 Average

0.60 - 0.799 Strong

0.80 - 1.00 Very Strong

Source : Sudijono, Correlation Coefficient Cable

The scale of r value is between 0 \< r >/ 1, where : r = 1 , it means that the influence

of dependent and independent variable are positive perfectly (if the r value is getting

closer to 1, the effect is getting stronger and more positive). r = 0, it means that there

is no correlation between dependent and independent variable.

R2 in the next column r is to know how much of dependent variable (Y) can be

explained by the independent variable (X). the rest of R square value is explaining for

another factor.

CHAPTER IV

ANALYSIS OF DATA AND INTERPETATION OF

RESULT

4.1 Descriptive Analysis

4.1.1 Data collection

In collecting the data for the research, the researcher shares 25 valid

statements to people in the KFC outlet in KFC Lippo Cikarang Mall by distributing

questionnaire, after get permission from the manager of the outlet for conducting

research in the fast food outlet. The researcher used offline system questionnaire,

means the researcher went to the outlet for distribute the questionnaire directly to the

people who are purchase or consuming the fast food.

Questionnaire distribute randomly for 93 people, according to the result of

Slovin’s calculation method, in order to get the total sample in one population, that

already explained in chapter 3. For the calculation and testing method stated in

chapter 3, researcher used SPSS Program Ver. 16.0. and Microsoft Excel.

4.1.2 Characteristic of Respondent

a. Gender of the respondents.

The figure below explain the data based on the primary data collected from the

questionnaire, the characteristic of respondent for gender for this research are 34 male

respondents or 37% and 59 female respondents or 63% of 93 people that participate in

this research who are purchasing or consuming fast food in KFC outlet at Lippo

Cikarang Mall. The respondent majority is female. They are worker, who had lunck

break, work in the Lippo Cikarang area, or mothers who take their children for meals.

31%

44%

25%

17-25 Yo 26-35 Yo > 35 Yo

37%

63%

Male Female

Figure 4.1 Gender Distribution Chart


b. Age of the Respondents

The figure below explains for the characteristic of respondent based on their

age, the researcher classified the age into three groups. First, there are total of 29

respondents or 31% that have age ranged from 17 until 25 years old. Second, there are

total of 41 respondents or 44% that have age ranged from 26 until 35 years old. And

the last, there are 23 respondents or 25% have their age above than 35 years old. Since

the KFC fast food restaurant can consumed by all age people, so there are many

people that have variety age have their meal there. Majority respondents are employee

who had lunch break in KFC outlet.

4%

60%

36%

Elementary - Senior High Diploma University

Figure 4.2 Age Distribution Chart


c. Education Background of the Respondents

The figure below explains the education background of respondents in the research,

there are 4 respondents or 4% that have their education background for elementary

school until senior high school. Then, there are 33 respondents or 36% have the

education for diploma degree. Last, 56 respondents or 60% have their education for

university degree.

Figure 4.3 Education Background Distribution Chart


d. Occupation Background

The data of respondents occupation background from the questionnaire, show

us the majority of respondents have their job as an employee of a company in Lippo

Cikarang area are 49 respondents or 53%. There are students also that have their meal

in KFC restaurant are 26 respondents or 28%. Another occupation majority in “Ibu

Rumah Tangga” are 11 respondents or 12%. Last, there are also an entrepreneur

people who have their meal are 7 respondents or 7%.

28%

53%

7%

12%

Students Employee Entrepreuneur Others

49%

36%

11% 2% 2%

< 5 Million IDR 5-10 Million IDR 11-15 Million IDR

16-20 Million IDR > 20 Million IDR

Figure 4.4 Occupation Background Distribution Chart


e. Monthly Income

Figure 4.5 Monthly Income Distribution Chart


This figure explained the data collected from the questionnaire. For the

monthly income, fewer than 5 million Rupiah per month there are 46 respondents or

49%. 33 respondents or 36% have their income between 5 until 10 million Rupiah per

month. 10 respondents or 11% have income between 11 until 15 million Rupiah. 2

respondents or 2% have their income in range 16 until 20 million Rupiah per month,

and last there are 2 respondents or 2% that have their income more than 20 million

96%

4%

Yes, I do No, I don’t know

Rupiah per month. The respondents purchase decision in purchasing their meal at

KFC, indicates the economic condition for all respondents are good.

f. Respondent Awareness of Fast Food Risk

Besides knowing the characteristic of respondents, the researcher also wants to

know, are people aware for risk of health diseases caused by Fast Food? From the

questionnaire distributed to the respondents, the statement for the respondents “ I

aware of health risk by consuming fast food.”, then the result 89 respondents or 96%

knows and aware about the risk caused by consuming fast food, and 4 or 4%

respondents don’t know and don’t aware about the risk caused by consuming fast

food.

Figure 4.6 Respondent Awareness of Fast Food Risk Distribution Chart


4.1.3 Mean Score and Overall Means Score Analysis

This is the result of mean score (MS) and overall means score (OMS) analysis

through 93 respondents that participate in this research. This test purpose is to know

the response from the respondents for the agreement level to the factor, by analyzing

statements or indicators from every variable in the questionnaire. There are five

interval class that explains the response from respondents to the statements or

indicators, there are; 4.21 – 5.00 is strongly agree, 3.41 – 4.20 is agree, 2.61 – 3.40 is

average, 1.81 – 2.60 is disagree and 1.00 – 1.80 is strongly disagree.

Table 4.1 Mean Score and Overall Mean score for Age & Life Cycle

Factors Manifest

Variables Variables

Mean


Age &

Life

Cycle

X1.1 Menu of American fast

food is match with my

taste.

3.77 3.41 – 4.20 Agree

X1.2 I often invite my family

members, to have meal

here.

3.45 3.41 – 4.20 Agree

X1.3 This fast food restaurant is

great choice when I had

little time to have meal.

3.83 3.41 – 4.20 Agree

X1.4 I feel comfort to have meal

here, in this fast food

restaurant.

3.74 3.41 – 4.20 Agree


Source: Primary data, Construct by Researcher

From the result MS and OMS table of age and lifecycle, we can see the 93

respondents are agree that age & lifecycle are affecting their purchasing decision in

purchasing or consuming American fast food KFC in Lippo Cikarang Mall. The

overall mean score value is 3.70 indicate that respondents are agree with the

indicators or statements.

Table 4.2 Mean Score and Overall Mean score for Occupation

Factors Manifest

Variables Variables

Mean


Occupa-

tion

X2.1 I often to eat here while

having lunch break or free

time at office

3.3 2.61 – 3.40 Average

X2.2 I often eat here and hang in

this fast food restaurant

with my business friend.

3.28 2.61 – 3.40 Average

X2.3 This fast food restaurant

outlet is near with my work

office.

3.31 2.61 – 3.40 Average

X2.4 I often meet with my

business clients or clients

of my work here.

2.75 2.61 – 3.40 Average

X2.5

In my opinion, this

restaurant can be a place

to meet with my client

business.

3.27 2.61 – 3.40 Average



From the table above, the respondent’s response for occupation factor that

affecting their purchase decision in purchasing the fast food are average. The overall

mean score is 3.18 which indicates the average. The average means not all

respondents are agree or disagree with the statements or in neutral condition.

Table 4.3 Mean Score and Overall Mean score for Economic Situation

Factors Manifest

Variables Variables

Mean


Economic

Situation

X3.1 The price of menu that this

Fast food restaurant

offered is quite affordable.

3.77 3.41 – 4.20 Agree

X3.2

I often to eat this American

fast food like this and it not

affect my financial

condition.

3.54 3.41 – 4.20 Agree

X3.4 Cost incurred to eat here in

comparison to cook my

own food is almost equal.

3.33 2.61 – 3.40 Average



Based on the table above, the respondents response is agree with the economic

situation can affect to their purchase decision to purchasing fastfood. The overall

mean score is 3.54 for this economic situation factor means respondents agree to this

factor.

Table 4.4 Mean Score and Overall Mean score for Lifestyle

Factors Manifest

Variables Variables

Mean


Lifestyle

X4.1 I like to eat here and

hanging out with my

friends here.

3.82 3.41 – 4.20 Agree

X4.2 I like to eat here with my

family. 3.46 3.41 – 4.20 Agree

X4.3 I prefer to have meal

outside than cooking at

home.

2.98 2.61 – 3.40 Average

X4.4 Culinary in American fast

food is one of my hobbies. 3.13 2.61 – 3.40 Average



The respondents response about lifestyle will affect their purchase\ decision is

average. This means respondents in neutral condition, agree and disagree for this

statements or factor. The table above shows the total of overall means score is 3.34,

which means average.

Table 4.5 Mean Score and Overall Mean score for Personality & Self Concept

Factors Manifest

Variables Variables

Mean


Persona-

lity &

Self

Concept

X5.1 I like the menu, taste, and

variety of food in this

American fast food.

3.98 3.41 – 4.20 Agree

X5.2 This American fast food has

many food menus to offer. 3.66 3.41 – 4.20 Agree

X5.3

In my opinion, KFC is still

number one for taste and

quality of food compare to

other brands.

3.89 3.41 – 4.20 Agree

X5.4 Service given in this outlet

is very good. 3.94 3.41 – 4.20 Agree



For personality and self-concept factor, based on the table above, respondents

are agree with this factor that personality and self concept will affect their purchase

decision in purchasing or consuming fast food. The overall mean score for this factor

is 3.86, which means the respondents are agree with the factor or statements.

Table 4.6 Mean Score and Overall Mean score for Purchase Decision

Factors Manifest

Variables Variables

Mean


Purchase

Decision

Y1.1


food menu because of

great taste and various

menus that match with my

style.

4.16 3.41 – 4.20 Agree

Y1.2


food menu because of this

outlet serve a comfort

place to have meal and

3.91 3.41 – 4.20 Agree

hanging with my business

friends.

Y1.3 I am purchasing this fast

food menu because of the

affordable price offered.

3.78 3.41 – 4.20 Agree

Y1.4


food menu because it can

full fill the needs of people

lifestyle (meal with family,

hanging with friends or

family).

3.92 3.41 – 4.20 Agree

Y1.5


food menu because this

outlet has various menu,

comfort place, great

facilities and good service.

4.11 3.41 – 4.20 Agree



For purchasing decision, the respondents are agree with the purchase decision

in consuming fast food. The total value of overall mean score based on the table

above is 3.97, which indicates the respondents are agree with the factor and

statements or indicators.

4.1.4 Statistical Descriptive

Table 4.7 Descriptive Statistics

Descriptive Statistics

N Range Minimum Maximum Mean

Std.

Deviation Variance

Statistic Statistic Statistic Statistic Statistic Std. Error Statistic Statistic

x1 93 10 8 18 14.80 .215 2.072 4.295

x2 93 19 6 25 15.91 .396 3.821 14.601

x3 93 10 5 15 10.75 .228 2.200 4.840

x4 93 13 7 20 13.39 .247 2.387 5.696

x5 93 9 10 19 15.25 .179 1.730 2.993

y1 93 7 16 23 19.90 .167 1.609 2.588

Valid N

(listwise) 93

Source: SPSS Program Ver.16.0

The table above is the result of descriptive statistics from the questionnaire

data, processed by SPSS program. N means total of respondents, the researcher take

93 sample of respondents. For y1, it has 7 for range, 16 for minimum, 23 for

maximum, 19.90 for mean statistic, .167 for mean std. error, 1.609 for standard

deviation and 2.588 for variance statistic. For X1, it has10 for range, 8 for minimum,


deviation and 4.295 for variance statistic. For X2, it has 19 for range, 6 for minimum,


deviation and 14.601 for variance statistic. For X3, it has 10 for range, 5 for

minimum, 15 for maximum, 10.75 for mean statistic, .228 for mean std. error, 2.200

for standard deviation and 4.840 for variance statistic. For X4, it has 13 for range, 7

for minimum, 20 for maximum, 13.39 for mean statistic, .247 for mean std. error,

2.387for standard deviation and 5.696 for variance statistic. For X5, it has 9 for range,

10 for minimum, 19 for maximum, 15.25 for mean statistic, .179 for mean std. error,

1.730 for standard deviation and 2.993 for variance statistic.

4.1.5 Classic Data Assumption analysis

Next analysis that researcher wants to explain is multicollinearyty test. The

result is show in the table below.

Table 4.8 Result of Collinearity test


Multicollinearity is a statistical phenomenon in which two or more predictor

variables in a multiple regression model are highly correlated. The researcher use

Collinearity Statistics

Tolerance VIF

.537 1.863

.572 1.748

.642 1.558

.688 1.453

.763 1.310

SPSS program to test of there is a multicollinearity in the research. According to

Sunyoto, D. (2011), the condition of variance inflation factor (VIF) must be below

than 10, alpha tolerance 10% or 0.10 then the VIF = 10. (VIF, <10). For the indicator

of tolerance, the result is must above than 10% or 0.1. The researcher concludes there

is no collinearity, since the result from the table above, VIF result is below than 10,

and the tolerance computation is above than 0.1.

This research conducted with the 93 respondents. For testing the

autocorrelation, the researcher using Durbin Watson tests from SPSS program.

Autocorrelation in the research must not happen, and the indicators for Durbin

Watson test according to Sunyoto, D,(2011) p91,

Table 4.9 Result of Durbin Watson test


positive autocorrelation occurs when the value of DW test result <-2 , autocorrelation

does not occur if the value of -2 <= DW test result <= +2, negative autocorrelation

occurs when the value of DW test result > +2. From the table above, the researcher

can concludes that autocorrelation is not happen, because the Durbin Watson test

result is 1.425

For normality test, the researcher use normal probability plot graphics and

histogram from the SPSS program. The aim of normality test is to know if the

distribution of the data is normal or not. According to Sunyoto, D. (2011), the pattern

of circle dot position must near of diagonal line in the box, and the distribution of the

data must not curved to the left or right. For the histogram, the good result must have

a good bell shape normal curve and the histogram have the highest bar. Here is the

result of normality test,

Durbin-Watson

1.425





From two figures above, the researcher concludes the data distribution in this research

is normal.

For last, last test result in multiple regressions analysis is heteroscedasticity

test. From the SPSS program, the researcher gets result of this test.

Figure 4.9 Result of Heteroscedasticity Test


From the scatter plot result above, the researcher concludes heteroscedasticity

does not happen and data can be processed and analyzed.

4.2 Multiple Regression Analysis

The researcher used multiple regression test method to know the influence of

personal factor in characteristics of consumer behavior toward people purchase

decision in purchasing or consuming the American fast food, study case in KFC the

American fast food restaurant in Lippo Cikarang Mall. After distributing the

questionnaires consist of statements or indicator for every factors to the 93 repondents

that participate in this research, the researcher got result after processing the data by

SPSS program Ver.16.0 and the result are in the table below;

Table 4.10 Result of Multiple Regression Test (Coefficients)


From the result of the table above, the researcher use standardized coefficients

beta for concluding the equation for multiple regression. According to Sunyoto D.

(2011), the “a” value or Constanta value is cannot be used in this research, because

the five independent factors are not having any unit to calculate people purchase

decision. From the standardized coefficients table above, the researcher concludes the

multiple regression equation is;

Y= 0.194X1+0.200X2+0.256X3+0.083X4+0.335X5

Where:

Y = Purchase Decision

X1 = Age and Lifecycle

X2 = Occupation

X3 = Economic situation

X4 = Lifestyle

X5 = Personality and Self Concept

Coefficientsa

Model

Unstandardized

Coefficients

Standardized

Coefficients

t Sig.

Correlations

B Std. Error Beta

Zero-

order Partial Part

1 (Consta

nt) 8.819 1.042

8.461 .000

x1 .151 .069 .194 2.171 .033 .620 .227 .142

x2 .084 .036 .200 2.307 .023 .550 .240 .151

x3 .187 .060 .256 3.134 .002 .613 .318 .205

x4 .056 .053 .083 1.045 .299 .460 .111 .068

x5 .312 .070 .335 4.467 .000 .598 .432 .293

a. Dependent Variable:

y1

T-Test

For the T test, researcher used T table from computation to be compare with

the T-table. T computation is value of “t” from the SPSS coefficients table. With the

93 respondents, the researcher use T value from T table with the respondents of 91

(93-2) and with the significance level 0.05, it is 1.98638. If T computation < t table,

H0 Accepted, Ha Rejected and if t computation > t table, H0 Rejected, Ha Accepted.

From the table of coefficient table above, the researcher can conclude;

a) From the coefficients table, column of T, the T value of first factor (X1) age

and life cycle, the T value (2.171) is bigger than T table (1.986). This means

Ha1 accepted and age and life cycle factor has influence toward people

purchase decision.

b) From the coefficients table, column of T, the T value of second factor (X2)

occupation, the T value (2.307) is bigger than T table (1.986). This means Ha2

accepted and occupation factor cycle has influence toward people purchase

decision.

c) From the coefficients table, column of T, the T value of third factor (X3)

economic situation, the T value (3.134) is bigger than T table (1.986). This

means Ha3 accepted and economic situation factor has influence toward

people purchase decision.

d) From the coefficients table, column of T, the T value of fourth factor (X4)

lifestyle, the T value (1.045) is smaller than T table (1.986). This means Ha4

rejected and Ho4 accepted, thus lifestyle factor has no influence toward people

purchase decision.

e) From the coefficients table, column of T, the T value of fifth factor (X5)

personality and self-concept, the T value (4.467) is bigger than T table (1.986).

This means Ha5 rejected and personality and self-concept factor has influence

toward people purchase decision.

F-Test

Table 4.11 Result of Multiple Regression Test (ANOVA)


The ANOVA table above explains about the result of ANOVA test or F test.

The main point of F test is to know the influence between Age & Life Cycle(X1),

Occupation(X2), Economic Situation(X3), Lifestyle and Personality(X4) & Self-

concept(X5) toward people or consumer purchase decision in purchasing or

consuming the American fast food. The result from the F test, ANOVA table is F

value get 29.152 with the significance level 0.000.

Because of the significance level is (0.000) lower than the alpha value in the

research (0.05) it means, the (Ha6) is accepted and (Ho6) rejected. F table value for

this research, with 93 respondents, total of 6 variables, and significance level 0.05, is

2.32, thus the F-test computation result is 29.152. The F computation value higher

than F table value, then researcher can concludes that Age & Life Cycle, Occupation,

Economic Situation, Lifestyle and Personality & Self concept significantly affect or

have the significant correlation toward people purchasing decision in purchasing or

consuming American fast food KFC

ANOVAb

Model Sum of Squares df Mean Square F Sig.

1 Regression 149.123 5 29.825 29.152 .000a

Residual 89.006 87 1.023

Total 238.129 92

a. Predictors: (Constant), x5, x2, x3, x4, x1


Table 4.12 Result of Multiple Regression Test (Model Summary)


The Model Summary table above explains the R and R Square. First, the result

of R-value in the table above is 0.791 or 79.1%. In the other words, correlation

relationship between the five X factors (Age & Life Cycle, Occupation, Economic

Situation, Lifestyle and Personality & Self concept) toward people purchase decision

is 79.1%. Last, the result of R Square in the table is 0.626, this means 62.6% people

purchasing decision can be explained by five X factors (Age & Life Cycle,

Occupation, Economic Situation, Lifestyle and Personality & Self concept) above.

Moreover, the rest 37.4% (100% - 62.6%), people purchasing decision can be

explained by other factors.

4.3 Interpretation of Result

In this part, the researcher will describe the result of this research about the

influence of Personal factor in characteristic of consumber behavior toward people

purchase decision in purchasing or consuming fast food KFC, study case in KFC

Lippo Cikarang Mall. Based on the ANOVA test or F-test table result, the

significance level is 0.000 lower than the alpha level 0.05 (5%), that means variable

of Age & Life Cycle(x1), Occupation(x2), Economic Situation(x3), Lifestyle and

Personality(x4) & Self-concept(X5) in this research affect or influence people

purchase decision.

Model Summaryb

Mod

el R

R

Square

Adjusted

R Square

Std. Error

of the

Estimate

Change Statistics

R Square

Change

F

Change df1 df2

Sig. F

Change

1 .791a .626 .605 1.011 .626 29.152 5 87 .000

a. Predictors: (Constant), x5, x2,

x3, x4, x1


a) Age and lifecycle (X1) toward Purchase decision (y)

From the result of multiple regression tests, the researcher can conclude; the

first factor, Age and life cycle stage (X1) has influence toward people purchase

decision. People purchase decision in purchasing goods or services are changeable

during their ages and lifetimes. From the questionnaire data, respondents are agree

with the menu of American fastfood that is match with their taste. The respondents

are also like to invite their family member to eat at American fast food KFC Lippo

Cikarang Mall. The short time break can be factor that people decide to have their

meal at this fast food restaurant and people are agreed to feel comfort to had meal in

the outlet.

b) Occupation (X2) toward Purchase decision (y)

Second factor, occupation (X2) also has influence toward people purchase

decision in this research. Occupation can determine how goods or services that people

purchase or buy. High position of a person, will make their decision for purchasing

the expensive, good, or match with their occupation. From the respondents answer,

they are all having average of opinion that occupation can affect their decision to eat

in the outlet, where average means people are agree and disagree or moderate to

assess the statements. Researcher can conclude their purchase in KFC affected by

their occupation for example the position of their jobs, outlet is near from their office,

or another factor such as follow their business mates to have meal there.

c) Economic situation (X3) toward Purchase decision (y)

Third factor, economic situation (X3), affects the people purchase decision in

consuming fast food. The basic of people purchase ability is their ability to buy with

considering their income. Income level of a person will affect their savings and

consumption. Higher income of person will also increase the level of savings and

increase their consumption. Lower income of a person will decrease their savings and

decreasing their consumption. The indicators of economic situation can affect their

decision in purchasing fast food can be seen from the respondents opinion.

Respondents are agree that price of fast food menu is affordable, the purchasing of

American fast food menu will not affect their economic condition, and the cost

occurred when cooking at home than buying fast food is almost equal.

d) Lifestyle (X4) toward Purchase decision (y)

Lifestyle (X4) or the fourth factor in this research has less influence toward

their purchase decision in purchasing American fast food KFC. Lifestyle is a part of

people, how do they live in activities, interest and opinions (AIO). Activities

dimension for example, work, hobbies, shopping, sports, interest for example, food or

culinary, fashion, entertainment, family, and opinion for example social issue,

business, and products. The researcher concludes the respondent consists of cikarang

people do not have same lifestyle for people that live in another city such as Bekasi

and Jakarta. In fact, the lifestyle between people in Cikarang is different with people

in Jakarta, this lifestyle differences caused by several factors such as, social

environment, economic background and the personality of the people. The different

lifestyle in American fast food culinary interest create a different result, so from the

result data, the lifestyle factor has less or no influence toward people purchase

decision in purchasing American fast food KFC. The different lifestyle in American

fast food culinary interest create a different result, so from the result data, the lifestyle

factor has less or no influence toward people purchase decision in purchasing

American fast food KFC.

e) Personality and self concept (X5) toward Purchase decision (y)

Last, Personality and Self-concept (X5) is the fifth factor in this research that

has influence to people purchase decision. From the data, the researcher can conclude

all respondents agree with their personal and their self-concept that influence their

purchase decision in purchasing fast food. People have different personalities and self

concept, but in this research, all of respondents have their same personality for having

their meal in American fast food KFC because of their personal reasons such as they

love to consume the American fast food especially KFC menu. Another reason for

personality and self concept is KFC restaurant has variety menu, delicious taste and

quality of food, service, etc better than another American fast food restaurant.

From the explanation above, the researcher concludes the people purchase

decision 62.6% affected by five factors above and for the individual factor. The most

dominant factor influence people purchase decision is personality and self-

concept factor(X5), it can be seen from T-test result, with the highest t computation

value (4.467) than another variables. According to Sunyoto, D. (2011), the dominant

factor can be seen from the highest result of t-test value. When consuming fast food or

often called as junk food, people must consider about the risk of health that caused by

consuming fast food. From this research, 96% of respondent knows about the health

risk but they ignores it and continue their purchasing because of the personality and

self-concept factor that most affect their purchase decision.

CHAPTER V

CONCLUSIONS AND RECOMMENDATIONS

5.1 Conclusion

Kentucky Fried Chicken is one of many quick service restaurants that sells

fast-American food menu in Indonesia, for Indonesian people KFC is still number one

to be chosen for several fast food restaurants, proof with the top brand survey in 2012.

Indonesian people love to consume this American fastfood menu. With the high risk

of health if consuming the fast food so much, mostly people are aware for the risk,

and still want consume it. There are many serious health illnesses caused by

consuming fast food. Why people want to consume it? What factors those motivate to

consume the fast food?

From the multiple regression analysis, researcher got the formula for this

research Purchasing Decision = 0.194X1+0.200X2+0.256X3+0.083X4+0.335X5. F test

result, with the F table (29.152) is higher than F computation (2.32) then all

independent factors has significant correlation toward dependent variable. T test

result, X1, X2, X3, X5 has significance correlation toward dependent variable(Y) and

X4 has not significance toward dependent variable (Y).

In this research, there are five independent variables (X) consist of 28

statements as the statement or indicator, which has 3 invalid statements and 25 valid

statements for conducting the research. From the data collection and processing via

SPSS Program, the researcher gets result for this research, the dominant factor that

affect people purchase decision is fifth factor, personality and self-concept (X5). as

already explained in the previous chapter, personality refers to the unique people

psychological charactersictics or their opinion or mindset that relatively consistent

and long lasting responde to one’s own condition. Self concept refers to people

possession then it can reflect their identities. With the personality, individual or

people wants to purchase and consume one brand or one product because they believe

with only that product or brand.

From the explanation above, the researcher concludes besides the dominant

factor that influenced people purchase decision, there are another external factors that

also influence people purchase decision. The adaptation ability for KFC Company to

adapt with Indonesian culture has an important role to get people attention for

consuming fast food, for example the addition menu of rice and Perkedel, it will

increase people interest for having meal in foreign fast food restaurants like KFC.

Besides adaption to the Indonesian culture, the bundling price for every menu that

KFC offers to customer is also important. With the affordable price, it also can

increase people interest for purchasing fast food menu.

5.2 Recommendation

From the conclusion, the researcher has several recommendations for object

study in increasing people purchase decision in purchasing or consuming fast food

KFC;

a) For factors or variables that has influence toward people purchase

decision(X1,X2,X3, and X5) KFC should maintain the strategy, plans, and

programs to keep the sales increase. As the result from this research, people

purchase decision dominantly affect by people personality and self-concept. KFC

should maintain and increase their product quality and service quality, so that

people can keep their personal reason to have fast food menu only in the KFC

than another fast food restaurants.

b) For factor or variable that has not influence toward people purchase

decision (X4), KFC should care about the lifestyle factor of Cikarang people. If it

possible, than the company can take study about learning people lifestyle in

Cikarang for increasing company sales. People’s lifestyle is different from one

place to another place; the strategy must be different for facing the different

lifestyle. For example, Cikarang people would like to hangout and have meal with

their children, to attract more customers, KFC can improve the playground area

for the customer’s children, and then the children like to play there while having

their meals.

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