65
1 THE RELATIONSHIP BETWEEN MARKETING MIX TOWARDS CONSUMER PURCHASING DECISION of PRO PLAN (A CASE STUDY AT PEKAYON PETSHOP BEKASI) By Alvin Javier Djari 011200800007 A thesis presented to the Faculty of Economics President University in partial fulfillment of the requirements for Bachelor Degree in Economics Major in International Business December 2011

THE RELATIONSHIP BETWEEN MARKETING MIX TOWARDS …

  • Upload
    others

  • View
    1

  • Download
    0

Embed Size (px)

Citation preview

1

THE RELATIONSHIP BETWEEN MARKETING

MIX TOWARDS CONSUMER PURCHASING

DECISION of PRO PLAN

(A CASE STUDY AT PEKAYON PETSHOP

BEKASI)

By

Alvin Javier Djari

011200800007

A thesis presented to the Faculty of Economics

President University in partial fulfillment of the

requirements for Bachelor Degree in Economics Major

in International Business

December 2011

2

CHAPTER I

INTRODUCTION

This chapter will discuss the introduction of this thesis that consist of the

background of the study, the company profile, problem indentified, statement of

the problem, research objectives, significance of the study, theoretical framework,

scope and limitations of the study, assumptions and hypothesis and definitions of

terms.

1.1 Background of the Study

In recent years, many companies throughout the world have created their

own marketing mix activity to compete with their competitors. The company has

to be able to make the right marketing mix with the current market condition and

also with their targeted market. The targeted market as the indicator of the

succesfull marketing mix strategy should be clearly defined, because the target

market is the focus for all marketing mix activity.

As can be seen now in Indonesia, the pet food business is aggressively

growing in the past 6 (six) years, it can be seen through the pet population itself

that is increasing and also the pet lovers especially dogs and cats are increasing

too1. Below is the figure of the pet population in Indonesia for the past six years.

1 The data was taken in Nestle Purina Petcare Intranet during the Internship Program,

February 2011

3

Figure 1.1 Pet Population in Indonesia for the past six years

Source: Nestle Purina Petcare Indonesia intranet

This market conditions are very promising opportunity for the pet food

industries to expand their business in Indonesia.

In this study, the researcher chooses Pro Plan as one the products of Nestle

Purina Petcare, where the researcher did the internship before. As Nestle Purina

Petcare, has been the market leader in the super premium pet food industries in

Indonesia, many competitors, such as Science Diet, Royal Canin and Eukanuba try

to make the their innovative approach in marketing mix so they can gain more

market share against Pro Plan. This research was made to explore the relationship

between marketing mix that Pro Plan has made towards consumer purchasing

decision.

In this research, the researcher would like to find the most effective

marketing mix by Pro Plan that can attract a new costumer, and also to maintain

their relationship with the existing costumer. The right marketing mix not only

beat their competitors in the market but also attracts more consumers to buy the

products through the consumer purchasing decision process.

0

200

400

600

800

1000

1200

1400

1600

2005 2006 2007 2008 2009 2010

Cat Population Dog Population

In Thousand

4

1.2 Company Profile

Nestle Purina Petcare

Nestlé Purina Pet Care Company is the pet food division of Swiss-based

Nestlé S.A., following its acquisition of the American Ralston Purina Company on

December 12, 2001 and subsequent merger with Nestlé's Friskies Pet Care

Company. As a wholly owned subsidiary, it is headquartered at the General Office

in St. Louis, Missouri, United States. The animal feed business became the subject

of an acquisition bid by Swiss-based Nestlé, whose Friskies brand was the other

leading brand of pet food in the U.S. Nestlé S.A. and U.S. Ralston Purina

Company announced in January 2001 that they had entered into a definitive

merger agreement. Under the agreement, Nestlé acquired all of the outstanding

shares of Ralston .

In Indonesia, the pet food industry begins in 2002 where pedigree, Whiskas

was the only product in the market under Mars Company. Purina joined the market

in 2005. Even though Purina was late in terms of joining the market .but since

2007 Purina took over the market leader from Mars Company and being the

biggest pet food product purchased by consumers whether in pet shops or

Groceries in Indonesia. Vision of Nestle Purina itself is to making pets live better.

Their mission is to leading pet food business in Indonesia. Below is the

organizational chart where the researcher has done the internship in Nestle Purina

Pet care Indonesia.

5

Figure 1.2 Organizational Chart of NPP Indonesia

Source: Nestle Purina Petcare Indonesia intranet

There are 2 types of pet food product in the market. Those are:

Premium product

Super premium product

These two types product have different types of target market. For premium

product the target market is called Indulgent Nutritionist. And for super premium

product is called Expert Driven. And below are the details for the premium

products and super premium products.

6

1.2.1 Premium product

Premium product is sold through big retailers or KA (Key Account) like

Carrefour, Giant, LSM (Local Supermarket) and etc. The Premium Products of

Nestle Purina Indonesia is Alpo and Friskies. Consumers basically can buy

everywhere including in the pet shops. And the target market for this premium

product is Indulgent Nutritionist (pet lovers that treat their pets as companion,

house guard and etc.) Types of Indulgent Nutritionist:

Have strong bonding with their pets

Often treat their pets as companion / family member

Seek for a balance in Taste and Nutrition, and Variety

Want to please the pet by giving variety of food

Willing to switch brand to get variety

Figure 1.3 Premium Products of Nestle Purina Petcare

Source: Nestle Purina Petcare Indonesia intranet

1.2.2 Super premium product

Super Premium Product is sold through pet shops, breeders, vet and etc. The

Super Premium Products of Nestle Purina Indonesia is Pro Plan. The target market

for this super premium product is Expert Driven. This specialist channel love their

pet more than they love themselves. They love to join events. Winning the events

7

is something like pride for themselves. Types of expert driven or the specialist

channel:

Pet is consider ―child‖

Their pet food is about best ingredients

Ensure the pet has the best performance

Loyal but depends on recommendation from expert (vet or breeder)

Figure1.4 Super Premium Products of Nestle Purina Petcare

Source: Nestle Purina Petcare Indonesia intranet

1.3 Problems Identified

The researcher would like to find out how strong the relationship between

the marketing mix towards consumer purchasing decision. Beside that the

researcher would like to explore from which marketing mix variable that has been

set by Pro Plan that can attract more consumers in their buying decision. Problem

that face by Pro Plan is that the competitors of the Pro Plan also trying their best to

get new consumers. In order to win the competition Pro Plan should have the right

marketing mix to boost their sales performance.

8

1.4 Statement of the Problem

Understanding the right marketing mix is one of the key successes in

running a business in order to increase the sales revenue of the company.

Therefore, the company should be able to understand the needs of their consumer

in this case of Pro Plan, Purina should be able to understand the needs of their

consumers, in this case the Pet owner. The researcher stated the following

problems to understand more the relationship between the marketing mix and the

consumer purchasing decision.

Question:

1. Is there any relationship between marketing mix variable toward consumer

purchasing decision?

2. What is the most significance variable of marketing mix that influencing

consumer to buy Pro Plan?

Rationale: The research was done in order to help the companies to choose the

best marketing mix to maintain the relationship with existing consumers and to

attract new consumers.

1.5 Research Objectives

The research objectives are to identify how strong the relationship between

marketing mix of Pro Plan towards the consumer purchasing decision and to

identify which marketing mix variables that has the most significance influence in

buying Pro Plan, because there are many types several marketing mix variables

that Pro Plan does in each area of promotion, price, place and also their product.

9

1.6 Significance of Study

The significant of this study are:

1. For the researcher, this research is to know how strong the relationship

between marketing mix towards the consumer purchasing decisions and also

which variables of marketing mix that can attract more consumers to buy Pro

Plan.

2. For the company, this research is to improve the management in case of their

marketing mix in order to increase their sales revenue.

3. For other party, this study could be used as reference to do a further analysis

in the future and as input to gain more knowledge, particularly in effective

marketing mix.

1.7 Theoretical Framework

Figure 1.5 Theoretical Frame Work of the Research

Marketing mix (X)

Consumer Purchasing

Decision ( Y )

Need Recognition

Information

Research

Evaluation

Purchase Decision

Post Purchase

Behavior

Product

Price

Place

Promotion

10

The figure above illustrates that through the marketing mix 4Ps (promotion,

price, place, products) will influencing the consumer purchasing decision of the

consumer itself to buy the products

1.8 Scope and Limitations of the Study

The scope of this research is only use the consumer who purchases Pro Plan

in pet shops in Pekayon pet shop. The researcher chooses the Pekayon pet shop

because from the research that has been done before with the Pro Plan sales team,

the researcher get the information that Pro Plan products in that pet shop has given

a big contribution in NPP sales. The total number of population that is taken from

the pet shop is only 50 consumers. This research only discusses the Pro Plan

marketing mix towards the consumer purchasing decision.

1.9 Assumption and Hypothesis

This research was done in Pekayon Pet shop, which assumes the

effectiveness of the marketing mix Pro Plan towards the consumer purchasing

decision. This assumption is based on researcher knowledge having joined NPP

team for seven months. The hypotheses are as follow as:

H0: There is no correlation between marketing mix Pro Plan with consumer

purchasing decision

H1: There is a correlation between marketing mix Pro Plan with consumer

purchasing decision

11

1.10 Definition of Terms

NPP : Nestle Purina Petcare

Pro Plan : Brand pet food in super premium segments produced by

Nestle Purina Petcare

Pet shop : A shop that sell pets, pets food, and pets accessories

12

CHAPTER II

LITERATURE REVIEW

This chapter will consist of any theories that are related with the problem

statement. This chapter consists of marketing, marketing mix strategy and

consumer purchasing decision theory.

2.1 Marketing

Marketing has been identified by so many experts in so many different ways.

According to Philip Kotler, (2006) marketing is the business function that

identifies unfulfill needs and wants, defines and measures their magnitude and

potential profitability, determines which target markets the organization can best

serve, decides on appropriate products, services, and programs to serve these

chosen markets, and calls upon everyone in the organization to think and serve the

consumer.

While the other expertise said that marketing is not only much broader than

selling, it is not a specialized activity at all It encompasses the entire business. It is

the whole business seen from the point of view of the final result, that is, from the

consumer's point of view. Concern and responsibility for marketing must therefore

permeate all areas of the enterprise 2.

2 Drucker, P. F. (1954), The practice of management. New York: Harper & Brothers. p.38-39

13

Philip Kotler (2001) in his book explained that marketing people are

involved in marketing 10 types of entities :

1. Goods. Physical goods constitute the bulk of most countries’ production and

marketing effort. The United States produces and markets billions of physical

goods, from eggs to steel to hair dryers. In developing nations, goods—

particularly food, commodities, clothing, and housing—are the mainstay of

the economy.

2. Services. Services include airlines, hotels, and maintenance and repair

people, as well as professionals such as accountants, lawyers, engineers, and

doctors. Many market offerings consist of a variable mix of goods and

services.

3. Experiences. By orchestrating several services and goods, one can create,

stage, and market experiences.

4. Events. Marketers promote time-based events, such as the Olympics, trade

shows, sports events, and artistic performances.

5. Persons. Celebrity marketing has become a major business. Artists,

musicians, CEOs, physicians, high-profile lawyers and financiers, and other

professionals draw help from celebrity marketers

6. Places. Cities, states, regions, and nations compete to attract tourists,

factories,company headquarters, and new residents. Place marketers include

economic development specialists, real estate agents, commercial banks, local

business associations, and advertising and public relations agencies.

7. Properties. Properties are intangible rights of ownership of either real

property (real estate) or financial property (stocks and bonds). Properties are

14

bought and sold, and this occasions a marketing effort by real estate agents

(for real estate) and investment companies and banks (for securities).

8. Organizations. Organizations actively work to build a strong, favorable

image in the mind of their publics. Universities, museums, and performing

arts organizations boost their public images to compete more successfully for

audiences and funds.

9. Informations. The production, packaging, and distribution of information is

one of society’s major industries. Among the marketers of information are

schools and universities; publishers of encyclopedias, nonfiction books, and

specialized magazines; makers of CDs; and Internet Web sites

10. Ideas. Every market offering has a basic idea at its core. In essence, products

and services are platforms for delivering some idea or benefit to satisfy a core

need.

2.2. Marketing Mix Strategy

The term "marketing mix" was coined in 1953 by Neil Borden in

his American Marketing Association presidential address. And finally A

prominent marketer, E. Jerome McCarthy, proposed a Four P’s (product, price,

promotion and place) classification in 1960, which has seen wide use3. They are

often designed to influence consumer decision-making. Each element of the

marketing mix can affect consumers in many ways 4 . When the company markets

their products, they have to create a succesfull mix of the right product, sold at the

right price, in the right place, and using the most suitable promotion.

3 http://en.wikipedia.org/wiki/Marketing_mix 4 Peter, P.J. & Donnelly, J.H. (2007). Marketing management: Knowledge and skills (8th ed.).

New York: McGraw- Hill. p.89

15

According to Kotler, Philip (2003) in his book marketing insights from A to

Z describes that Marketing mix as the set of tools that management can use to

influence sales. Besides using the 4P’s as the consideration when market the

Products, the marketers should consider with 4C’s from the consumer point of

views before setting the 4P’s5, those 4C’s are:

4C’s 4P’s

Consumer Value => Product

Consumer Costs => Price

Convenience => Place

Communication => Promotion

Below are the further explanation by philip Kotler and Gary armstrong

(2000) in each element of Marketing mix.

Figure 2.1 Marketing Mix Variables

Source: Kotler (2000) principles of marketing p.10

5 Robert Lauterborn, ―New Marketing Litany: 4P’s Passe; CWords Take Over,‖ Advertising Age

(October 1, 1990), p. 26.

16

2.2.1. Product strategy

Based on Kotler and Armstrong (2010) they defined a product as anything

that can be offered to a market for attention, acquisition, use, or consumption that

might satisfy a want or need. They further explained that product is a key element

in the overall market offering. This offering becomes the basis upon which the

company builds profitable consumer relationships.

According to Jain (2000) the desired position for a product may be

determined using the following procedure:

1. Analyze product attributes that are salient to consumers.

2. Examine the distribution of these attributes among different market segments.

3. Determine the optimal position for the product in regard to each attribute,

taking into consideration the positions occupied by existing brands.

4. Choose an overall position for the product (based on the overall match between

product attributes and their distribution in the population and the positions of

existing brands).

2.2.2. Pricing strategy

Price is the amount of money consumers must pay to obtain the product.

Based on Kotler and Armstrong (2010), setting the right price is one of the

marketer’s most difficult tasks. The price strategy is a challenge for companies

because of deregulation, strong global competition, and conservative buyers, slow

progress in market. But finding and implementing the right pricing strategy is

critical to success 6.

6 David W. Cravens, Nigel F. Piercy, Strategic Marketing, Eight Edition, p.39

17

Based on Jain (2000) the Pricing strategies are divided into eight parts:

1. Pricing strategies for new products

Pricing strategies for new products divided into two parts those are:

a) Skimming pricing

Skimming pricing means we setting a relatively high price during the

initial stage of a product’s

b) Penetration Pricing

Penetration pricing means we setting a relatively low price during the

initial stages of a product’s life

2. Pricing strategies for established products.

Pricing strategies for established products are divided into three parts,

those are :

a) Maintaining the price

The objectives to maintain the price is to maintain the position in the

marketplace (examples: market share, profitability).

b) Reducing the price

The objectives to reducing the price are to act defensively and cut price

to meet the competition, to act offensively and attempt to beat the

competition. And the last is to respond to a consumer need created by a

change in the environment.

c) Increasing the price

The objectives are to maintain profitability during an inflationary

period, to take advantage of product differences, real or perceived. and

to segment the current served market.

18

3. Price-flexibility strategy.

Price-flexibility strategy divided into two parts, those are : one-price Strategy

and flexible-pricing Strategy

a) One – Price strategy is the strategies that charging the same price to all

consumers under similar conditions and for the same quantities. It is to

simplify pricing decisions, and to maintain goodwill among consumers.

b) Flexible- Pricing Strategy is the strategies that charging different prices

to different consumers for the same product and quantity. It is to

maximize short-term profits and build traffic by allowing upward and

downward adjustments in price depending on competitive conditions

and how much the consumer is willing to pay for the product.

4. Product line – pricing strategy.

Product line means pricing a product line according to each product’s effect on

and relationship with other products in that line, whether competitive or

complementary. The objective is to maximize profits from the whole line, not

just certain members of it.

5. Leasing strategy.

Leasing Strategy means an agreement by which an owner (lessor) of an asset

rents that asset to a second party (lessee). The lessee pays a specified sum of

money, which includes principal and interest, each month as a rental payment.

6. Bundling-pricing strategy

Bundling-pricing strategy means an inclusion of an extra margin in the price to

cover a variety of support functions and services needed to sell and maintain the

product throughout its useful life.

7. Price-Leadership strategy.

This strategy is used by the leading firm in an industry in making major pricing

moves, which are followed by other firms in the industry.

19

8. Pricing strategy to build market share.

This strategy is setting the lowest price possible for a new product, and the

objective is to seek such a cost advantage that it cannot ever be profitably

overcome by any competitor.

2.2.3. Place/distribution strategy

Kotler and Armstrong (2010), define place or distribution as a set of

interdependent organizations involved in the process of making a product available

for use or consumption by consumers. Place strategy in retail stores includes more

than the question of how consumers access the stores, it also includes the

availability of products in such stores (Kotler, 2000).

Based on Jain (2000) there are three strategic alternatives in designing the

distribution strategy, as follow as:

1. Exclusive distribution

Exclusive distribution means that one particular retailer serving a given area is

granted sole rights to carry a product. For example, coach leather goods are

distributed exclusively through select stores in an area. Thus, a company

considering an exclusive distribution strategy should review its decision in the

light of two ground rules, those are:

a) Whether the volume of the product in question is a substantial part of

the total volume for that product type.

b) Whether the exclusive dealership excludes competitive products from a

substantial share of the market.

20

2. Intensive distribution

The inverse of exclusive distribution is intensive distribution. Intensive

distribution makes product available at all possible retail outlets. This may

mean that the product is carried at a wide variety of different and also

competing retail institutions in a given area. The distribution of convenience

goods is most consistent with this strategy.

3. Selective distribution

Between exclusive and intensive distribution, there is selective distribution.

Selective distribution is the strategy in which several but not all retail outlets in

a given area distribute a product. Shopping goods—goods that consumers seek

on the basis of the most attractive price or quality characteristics—are

frequently distributed through selective distribution

2.2.4. Promotion strategy

Promotion means activities that communicate the merits of the product and

persuade target consumers to buy it. The promotions strategy itself includes

personal and non-personal communication activities. Activities that communicate

the merits of the overall product, which includes:

• Personal Selling/ sales force

Based on Jain (2000) Personal selling refers to face to face interaction

with the transmission. Personal selling involves communication in both

directions, from the source of destination and back.

• Advertising / mass or nonpersonal selling.

Advertising is any paid form of nonpersonal presentation and promotion

of ideas, goods, or services by an identified sponsor. (Principles of

Marketing, 13E, Kotler and Armstrong, 2010). Ads can be a cost-

21

effective way to disseminate messages, whether to build a brand

preference or to educate people.

• Sales Promotion.

Sales promotion is Trade deals, samples, coupons, premiums, tie-ins, p-

o-p, displays, sweepstakes, allowances, trade shows, sales rep contests,

events/experiences and more.

• Direct Marketing (also referred to as action or direct response

advertising)--online, direct mail, database management, catalogs,

telemarketing, and direct-response ads. Includes Interactive/Internet/web

• Public Relations--press releases, publicity. Securing editorial space, as

opposed to paid space--usually in print, electronic or Internet media.

Promote or ―hype‖ a product, service, idea, place, person or

organization, internal communication, lobbying. PR involves a variety

of programs designed to promote or protect a company’s

image/reputation or individual products.

2.3 Consumer Purchasing Decision

As the consumer, we always want to get what we really want but actually

that means doesn’t always suitable with their needs exactly. The consumer has

plenty of products choices based on their wants, but it is the objectives of the

company that should think about, either the consumer buy their products or not.

And that is the job of the sales and marketing team to think the effective strategy

to attract those consumers to buy their products, and why those consumers should

buy their products.

22

Based on Bill stinnett there are 4 (four) that have to be made when we want

to buy or purchase something. Sometimes, one person makes all four of these, but

in medium to large businesses it’s not unusual to see three or four different people,

and maybe even a committee or two, that have some influence in the outcome of

these four decisions. Below is the figures that shows four decisions that influence

our buying decision

Figure 2.2. The Four Elements of buying decisions7

Source: Bill Stinnett (2005) p.151

Consumer purchases are influenced strongly by cultural, social, personal and

psychological characteristics. The consumer buying decisions are affected by an

incredibly complex combination of external and internal influences8.

7 Stinnett, Bill (2005). Think Like Your Consumer. New York: Mcgraw Hill, p. 151 8 Kotler, Philip & Amstrong, Gary (2010). Principles of marketing (13th ed.). New York: Pearson

International.p. 73.

23

Based on Kotler and Armstrong (2010), there are several steps that

consumers usually buying the products that the company offers to them, those

steps are represented in the consumer purchasing decision making process, as

follow as:

Problem recognition

Information search

Evaluation of alternative

Purchase decision

Post-purchase behavior/buyer’s remorse (cognitive dissonance)

Figure 2.3. The consumer purchasing decision process

Source : http://www.wsivalueonnet.com/2010/11/12/series-digital-marketing-and-the-

consumer-decision-making-process-1-6/

2.3.1. Problem recognition

It is the first state for the consumers that occur when a buyer becomes aware

of a difference between a prefered state and a present state. A prefered state is

where the buyers preceive to be his or her situation in the present time. While the

present state is the actual state that his or her in the present condition. In this

condition, potential consumer has a problem that can be resolved by consuming

products and service. This kind of problems can happend through the boredom,

anxiety, or unhappiness, of the consumer. While it is the marketers job to help the

consumer solve those problems.

24

2.3.2. Information search

This is the second stage in buyers decision process, in which the consumer is

likely to search for more information about the products that they needed; the

consumer may simply have heightened attention or may go into active information

search.

Consumers can obtain information from any of several sources. These

include personal sources (family, friends, neighbors, acquintances), commercial

sources (advertising, sales people, dealer web sites, packaging, displays), public

sources (mass media, consumer rating organizations, internet searches), and

experiential sources (handling, examining, using the product). This relative

influence of these information sources vary with the product and the buyer.

2.3.3. Evaluation alternatives

This third stage of buying decision process means that after the consumers

collect all the infromation about the products from the searching then they

evaluates each of alternatives for the products brands that that could potentially

fulfill their needs. Sometimes there is a consumers that use a carefull calculations

and logical thinking when evaluating the alternatives. But in the other times some

consumers make buying decisions rely on their friends or the salespeople buying

advice without using their own calculations in decides the alternatives of the

products brands. For consumers of pet foods in this stage, they will evaluate the

alternatives of each brand of pet foods.

2.3.4. Purchase decision

It is the stage that indicate the buyers decision about which product to

purchase based on the alternatives that they have evaluate before. In this stage

represents the activities that occur during the final decision making and actual

purchase of products.

25

2.3.5. Post purchase behavior

The buyers decision process in which consumers take further action after

purchasing the product, based on their level of satisfaction or dissatisfaction. In

this final stage of the purchasing decision, this stage can be critical importance to

both consumer and to the future marketing sales potential. Consumer may buy or

not buy the product in the future. In this stage also the marketing should get

feedback from the consumer about their products, to either improve the product or

analyze what missing in the product.

2.4 The Relationship between Marketing Mix Strategy towards

Consumer Purchasing Decision

The relationship between marketing mix strategy towards is very close.

Cause with the right marketing mix strategy will create the consumer purchasing

decision to buy the products that they needs. The marketing mix as one of the

stimulus or supporting factors toward the consumer purchasing decision.

Marketing mix variable that are consist of product, price, promotion and place

have an important task to influence the consumer purchasing decision. While

setting the right and appropriate marketing mix, it will support the consumer

response to do the purchasing decision.

26

Below is the model of the buyer behavior that have the relationship between

the marketing mix towards the consumer Purchasing decision process based on

Kotler and Armstrong (2010).

Figure 2.4. The Model of Buyer Behavior

The figure explains that when the consumer starts to have their purchasing

decisions they will get the influence from the environment nearby. Those

environment are comes from the marketing stimuli or the marketing mix that has

been set by the companies and the others factors that come from economic,

technological, social, and cultural. After the environments that influence them, the

company will not know the buyers decision within their head in buyer’s black box.

So the company will then wait for the buyer responses towards the environment

that has been created by the company. At last the buying attitudes and preferences

and what the buyer buys, when, where and how much will then identified. Thus,

the brand and company relationship behavior will be very important in the post

purchase behavior activity in order to get the costumer back to buy the products

and be loyal to them.

The Environment

Marketing Stimuli Others

Products Economic

Price Technological

Place Social

Promotion Cultural

Buyer’s Black Box

Buyer’s characteristics

Buyer’s decision Process

Buyer responses

Buying attitudes and preferences

Purchase behavior: what the buyer buys, when,

where, and how much

Brand and company relationship behavior

27

CHAPTER III

RESEARCH METHODOLOGY

This chapter will discuss about the methodology that is used for this

research. This chapter consist of research method, research framework, research

instrument, sampling design and statistical treatment.

3.1 Research Method

A research methodology defines what the activity of research is, how to

proceed, how to measure progress, and what constitutes success. Research

methodologies consist of two method that is qualitative method and quantitative

method. Qualitative research is viewed as more restrictive in testing hypotheses

because it is extremely expensive and time consuming, and typically limited to a

single set of research subjects. Qualitative research is often used as a method of

exploratory research as a basis for later quantitative research hypotheses. While

the quantitative research is a systematic empirical investigation of quantitative

properties and phenomena and their relationships. Asking a narrow question and

collecting numerical data to analyze utilizing statistical methods. The quantitative

research designs are experimental, correlation, and survey (or descriptive).

In this research method, the researcher will describe the procedure that

would be use in the process of making this research. The processes are by using

sampling design, and selecting respondents and set of questionnaire, validation and

reliability process. After all the data that has been collected through the

questionnaire, the researcher then will process the data using the statistical tool.

This research is a quantitative research in which the researcher used

correlation analytic method which describes the degree of relationship between

28

two variables. The purpose of quantitative researcher is often used for theory

testing, requiring that the researcher maintain a distance from the researcher so as

not to bias result9.

This research will analyze the relationship between two variables. The

independent variable will be the marketing mix that has been implemented by Pro

Plan while the dependent variable is consumer purchasing decision. This research

will use the regression analysis to find the correlation between the independent

variables and the dependent variables.

This research will only use the primary data. The primary data was taken

from the distributed questionnaire. It seemed to be the most appropriate

methodology to be utilized because the researcher could gather the availability of

the information and to measure the accuracy and consistency of the data.

3.2 Research Framework

The research framework consist of problem statements, literature study,

questionnaire, collect the primary data, validity & reliability testing, process the

data, analysis interpretation of data, conclusion and recommendation. Below are

the more explanation of the research framework.

a. Problem statement

This research will start from the problem statement that is there any

relationship between marketing mix variable toward consumer purchasing

decision, and what are the most significance variable of marketing mix

that influencing consumer to buy Pro Plan.

9 Cooper, Donald & Schindler, Pamela S. (2006). Marketing Research, 4th edition, New York: Mcgraw

Hill, p. 216.

29

b. Literature Study

After getting the statement of the problem, the researcher then continue to

find any theories that are relevant to the studies of the problem

statements.

c. Questionnaire

The next action is the researcher conduct the pre test questionnaire,

whether the questionnaire can be accepted by the respondents. After

conduct the pre test questionnaire the researcher then makes the

questionnaire and spread the questionnaire to the respondents.

d. Collecting the primary data

After get the questionnaire from the respondents, the researcher then

calculate the data from the questionnaire.

e. Validity & reliability testing

Then, the researcher conduct the validity and reliability testing by using

SPSS

f. Process the data

After through the validity and reliability testing then the researcher

process the data to find the correlation between variable X and Y by using

SPSS

g. Analysis and interpretation of data

The researcher then will continue to analyze and interpret the data that

has been calculated by SPSS.

30

h. Conclusion and recommendation

The last of the research framework is the researcher will conclude all the

data that has been analyzed and recommend several things to the

company based on the data that has been found and analyzed

Below is the Research Framework from what the researcher already explains

above.

Figure 3.1 Research Framework

No

Yes

Using

Source: self construct by researcher

Problem Statement

Literature Study

Questionnaire

Validity & Realibility

Testing

Collect the Primary Data

Process the data

Analysis and Interpretation

of Data

Conclusion and Recommendation

SPSS (Statistical Product and Service

Solution)

31

3.3 Research Instrument

3.3.1. Data collection tools

The researcher used a survey as a method in collecting data. Survey can be

defined as a structured questionnaire given to a sample of a population and

designed to elicit specific information from respondents10

.The research then will

use questionnaire to gather all the data. The reason of choosing questionnaire is

faster and cheaper to gather the data. Researcher can also complete the survey as

the targeted time as well as in the lowest cost.

The questionnaire will identified the relationship between marketing mix

variables towards consumer purchasing decision by using close ended questions,

so the respondents need to choose several answer provided. The questionnaire

divided into three parts. The first part is about respondent’s profile, second part is

about the variable x which is the marketing mix components; those are product,

price, place, promotion, and the last part will explain about the consumer

purchasing decision variables.

3.3.2. Data measurement

The researcher will use likert scale techniques which is the most frequently

used variation of the rating scale. It is used because it is easy for the researcher to

construct and easy for the respondents to understand.

10

Maltohara, Naresh. K. & Peterson, Mark (2002), Basic Marketing Research, Pearson Prentice Hall,

p. 181.

32

Table 3.1 Likert Scale

Scale Rating

1 Strongly disagree

2 Disagree

3 Neutral

4 Agree

5 Strongly agree

Source : Adapted from Cooper and Schindler (2006)

3.4. Sampling Design

3.4.1. Size of the population

Based on Cooper and Schindler, (2006, p.434) population is defined as the

total collection of elements about which we wish to make some inferences. Size

of the population in this study is people who buy Pro Plan in the Pekayon pet shop.

Research limit the scope of research, only people who come and buy Pro Plan in

Pekayon pet shop only.

3.4.2. Sampling techniques applied

According to Cooper and Schindler ,(2006, p.321) sample is a part of the

target population, carefully selected to represent that population. In this research,

the researcher would like to use purposive sampling. Purposive sampling is a non

probability sample that conforms to certain criteria (Cooper and Schindler ,2006,

p.424).

33

Purposive sampling divided into two types which are, Judgment sampling

and quota sampling. In this research, the researcher would like to use Judgment

sampling. Judgment sampling is purposive sampling where the researcher arbitrary

selects sample units to conform to some criterion. (Cooper and Schindler,2006,

p.424).

According to the central limit theorem the sample means will be distributed

around the population, mean approximately in a normal distribution. Many

statisticians consider a sample of 30 or more to be large enough for the central

limit theorem to be employed11

.

Based on the theory above, the researcher then selects 50 people as the

respondents for this research due to time and cost limitation. Determining the

sample size for non-probability sample is usually subjective and arbitrary by the

researcher based on the researcher experience and judgment or the amount of

resources available.

3.5. Statistical Treatment

3.5.1. Pre testing

Before finalizing the questionnaire, pre testing was conducted on the entire

questionnaire. Pre testing refers to testing the questionnaire on a small sample of

respondents for the purpose of improving the questionnaire by identifying the

questionnaire and eliminating potential problems before using it in the actual

survey ( Maholtra and Peterson, 2002, p.307). The pre testing was conducted to 20

respondents within people who buy Pro Plan in Pekayon Pet shop.

11

Lind, Douglas A., Marchal, William G., & Mason, Rober D. (2003), Statistical Techniques in

Business and Economics, 11th edition, p. 278

34

3.5.2. Validity

The content validity of a measuring instrument is the extent to which it

provides adequate coverage of the investiagte questions guiding the study (Cooper

and Schindler, 2006). To test the validity of constructs and variables, researcher

chooses Pearson’s correlation coefficient.

………………………… (1) ...

Source: Lind and Marchal, 2003

Where:

N : the number of paired observations.

∑ X : the X variable summed.

∑ Y : the Y variable summed.

(∑X 2 ) : the X variable squared and the squares summed.

(∑X ) 2

: the X variable summed and the sum squared.

(∑Y 2 ) : the Y variable squared and the squares summed.

(∑Y ) 2

: the Y variable summed and the sum squarred.

∑ XY : the sum of the products of X and Y.

3.5.3. Reliability

According to Burns and Bush (2006), a test is reliable if respondent

reespoinds in the same or in a very similar manner to an identical or nearly

edication. Reliability analysis allows us to study the properties of measurement

35

scales and the items that make them up12

. In this case the researcher will using

Cronbach alpha to do the reliability testing.

…………………..…...…….…. (2)

Source: http://en.wikipedia.org.wiki/cronbach’s_alpha

Where:

α : ( Cronbach alpha) instrument reliability

r : average of correlation between items

K : number of times

3.5.4. Sample mean

The sample mean is used to identify what is the mean of each answer in each

variable. Thus, the researcher will use the formula below to find the mean.

X =∑ X

𝑛 ………………………..…...…….…………………. (3)

Source : Lind and Marchal, 2003.

Where :

X : sample mean

n : number in the sample

∑ X : total number in each variable

12

Lind, Douglas A., Marchal, William G., & Mason, Rober D. (2003), Statistical Techniques in

Business and Economics, 11th edition, p. 278

36

3.5.5. Testing the hypothesis

To find the hypotheses whether there is correlation or not, the researcher will

use spearman equiation:

………………………..…..…...…….…... (4)

Source : Riduwan & Akudon, 2004

Where :

rs : the Spearman’s rank correlation coefficient

∑D2 : total the difference between each rank of corresponding values of X

and Y

N : total items

The next step is to testing wheter the correlation values is significant or not,

the researcher will use Z test as follow as :

Z =𝑟𝑠 𝑛−1

1 ………………………..…..…...…….……... (5)

Source: Riduwan & Akudon.2004,p.121

Where :

Z : Coefficient of correlation

rs : The spearman’s rank correlation

n : Total sample

37

3.6. Limitations

The researcher will use statistical data through questionnaire that will be

spread out to the people who buying Pro Plan in Pekayon pet shop only. The

reason of choosing statistical data of questionnaire is because of the accurately and

easy to get. Statistical data is involved into one category to test the hypothesis. The

category is to test the relationship of marketing mix Pro Plan to consumer

purchasing decision. The statistical data is developed by Statistical Product and

Service Solution (SPSS) software to construct data which are got from the

questionnaire.

38

CHAPTER IV

ANALYSIS OF DATA AND

INTERPRETATION OF RESULTS

This chapter will discuss concerning the analysis of the data gathered during

research. It will answer each problems that stated in the statement of problems.

This chapter consist of the respondent data, descriptive analysis of data, the

relationship between marketing mix and consumer purchasing decision, hypothesis

testing, and the descriptive analysis of most significant marketing mix variables.

4.1 Respondent Data

Respondent data will consist of the data about the respondents gender, age,

length of using Pro Plan, expense and the frequency rate of buying Pro Plan within

one month.

4.1.1 Gender

This sub section sectors will explain about the gender of all the respondents.

Table 4.1 Gender of Respondents

Gender Frequency Percentage

Male 23 46%

Female 27 54%

Total 50 100%

Source: primary data

Based on the table 4.1 above shows that there is no significant difference of

respondents of Pro Plan users. The Pro Plan users are male 23 out of 50

39

respondents (46%) and the rest is female 27 out of 50 respondents (54%). So

gender is not really the issue of using pet foods.

4.1.2 Age

This sub section sectors will explain about the age of all the respondents.

Table 4.2 Age of Respondents

Age (year) Frequency Percentage

<20 5 10%

20-35 25 50%

36-40 13 26%

41-50 4 8%

>50 3 6%

Total 50 100%

Source: primary data

Based on the table 4.2 above shows that the most users of Pro Plan comes

from age 20-35 years is 25 out of 50 respondents (50%), and the second is the age

range from 36-40 years is 13 out of 50 respondents (26%) . The third position

comes from age below 20 years which shows 5 out of 50 respondents (10%), the

forth position is the age range from 41-50 years that shows 4 out of 50 respondents

(8%), and the last is the age above 50 years that shows 3 out of 50 respondents

(6%).

40

4.1.3 Length of using Pro Plan

This sub section sectors will explain how long the respondents has been

using Pro Plan.

Table 4.3 Length of Using Pro Plan

Length of Using Pro Plan Frequency Percentage

< 6 months 5 10%

6 months – 1 year 8 16%

1 year – 1.5 year 9 18%

1.5 year – 2 years 11 22%

> 2 years 17 34%

Total 50 100%

Source: primary data

Based on the table 4.3 above shows that 17 out of 50 respondents (34%)

using Pro Plan more than 2 years, this is quite loyal consumer. While the 11 of 50

respondents (22%) is using Pro Plan between 1.5 year until 2 years. There are 9 of

50 respondents (18%) is using Pro Plan between 1 year until 1.5 years. There are 8

of 50 respondents (16%) is using Pro Plan between 6 months until 1 year. Then the

last 5 of 50 respondents (10%) is using Pro Plan below 6 months.

41

4.1.4 Individual expense of buying Pro Plan

This sub section sectors will explain the respondents expense of buying Pro

Plan within one month.

Table 4.4 Expense per Months of buying Pro Plan

S

Source: primary data

Based on the table 4.4 above shows that 18 out of 50 respondents (36%)

have their individual expense per month between 400,000 – 500,000 IDR to buy

Pro Plan. Beside that 13 out of 50 respondents (26%) spend between 300,000 –

400,000 IDR. While 11 out of 50 of expense respondents (22%) spend more than

500,000 IDR. Second of the last is 6 out of 50 respondents (12%) spend between

200,000 – 300,000 IDR. The last is 2 out of 50 respondents (4%) spend below

200,000 IDR to buy Pro Plan.

Expense of buying Pro Plan Frequency Percentage

< Rp 200,000 2 4%

> Rp 200,000 - < Rp 300,000 6 12%

> Rp 300,000 – < Rp 400,000 13 26%

> Rp 400,000 - < Rp 500,000 18 36%

> Rp 500,000 11 22%

Total 50 100%

42

4.1.5 Frequency rate of buying Pro Plan

This sub section sectors will explain the respondents frequency rate of

buying Pro Plan within one month.

Table 4.5 Frequency Rate of Buying Pro Plan

Source: primary data

Based on the table above 4.5 shows that 18 out of 50 respondents (36%)

have their frequency rate of buying Pro Plan per month is twice per month. There

are 15 out of 50 respondents (30%) have their frequency rate of buying Pro Plan

per month is once per week. While 11 out of 50 respondents (20%) have their

frequency rate of buying Pro Plan per month is once per month. The last is 6 out of

50 respondents (12 %) choose to buy Pro Plan twice per week. While none of

respondents choose to buy Pro Plan everyday.

Rate of buying Pro Plan

Frequency Percentage

Once Per Month 11 22%

Twice Per Month 18 36%

Once Per Week 15 30%

Twice Per Week 6 12%

Everyday 0 0%

Total 50 100%

43

4.2. Descriptive Analysis

Through this descriptive analysis of data, the researcher will explain how the

validity testing and the reliability testing has been done.

4.2.1 Validity testing

The researcher use Pearson Product moment correlation coefficient with

SPSS to test the validity of its question in variable X and Y.

Table 4.6 Variable X Validity Test

No. Questions rs table r Remark

1 Pro Plan has many variety products that suitable with

my pets needs

.279 .564 Valid

2 Pro Plan quality is the best .279 .485 Valid

3 Pro Plan is a famous brand among the super premium

pet foods

.279 .410 Valid

4 Pro Plan has a clear list price .279 .452 Valid

5 Pro Plan price is cheaper than other super premium

pet foods providers.

.279 .374 Valid

6 Pro plan has a flexible payment method. .279 .517 Valid

7 Pro plan can be easily to get. .279 .431 Valid

8 Pro plan provides several transport distributions of

Pro plan to consumer when buy Pro plan in several

amount of costs.

.279 .421 Valid

9 Place to buy Pro plan is very comfortable and tidy .279 .444 Valid

10 Pro plan has an attractive sales promotion .279 .390 Valid

11 Pro plan has a good public relationship with the

consumers.

.279 .371 Valid

12 Pro plan has an attractive advertising in several

media.

.279 .510 Valid

Source : SPSS output

44

The table 4.6 above the researcher has conclude that all of the 12 questions to

test marketing mix variables (X) are valid, because all the r computations are

bigger than rs table .279.

Table 4.7 Variable Y Validity Test

Source : SPSS output

The table 4.7 above the researcher conclude that all of the 5 questions to test

purchasing decision’s variables (Y) are valid, because all the r computations are

bigger than rs table .279.

So, the researcher has conclude that from all the items in variables X and Y

has been categorized as valid based on the table above, which means that the

researcher can continue calculate the data to find the correlation because all the

data is valid.

No. Question rs table r Remark

1 I know exactly about Pro Plan .279 .650 Valid

2 I get information about Pro Plan easily .279 .722 Valid

3 I evaluate Pro Plan before buying pet foods .279 .588 Valid

4 I buy Pro Plan for my daily Pet foods .279 .507 Valid

5 I am really satisfied with the quality of Pro Plan .279 .644 Valid

45

4.2.2 Reliability testing

To test whether the variables in each questionnaire are reliable or researcher

has to measure it by using Cronbach’s alpha coefficient.

Below is the table of reliability that measure how strong the reability is based

on each value.

Table 4.8 Reliability Table

Source : Sugiyono,(1999)

By using SPSS for windows, the researcher gets the coefficient value of

reliability for marketing mix variables as the following below:

Table 4.9 Reliability Statistics Variable X

Source : SPSS output

Based on calculation result of the coefficient reability above, the value of

coefficient is as big as 0.639. So the instruments or elements used to measure the

marketing mix variables have a moderate reliability. It indicates that there is a

consistency in measurement of the 50 respondents.

Value Reliability

< 0.20 Not reliable

0.20 - < 0.40 Low reliable

0.40 - < 0.70 Moderate reliable

0.70 - < 0.90 High reliable

0.81 - < 1.00 Very high reliable

1.00 Perfect reliable

Cronbach's

Alpha N of Items

.639 12

46

While for the consumer purchasing decision variables, the researcher got the

value of coefficient reability as follows:

Table 4.10 Reliability Statistics Variable Y

Source : SPSS output

Based on calculation result of the coefficient reliability above, the value of

coefficient is as big as 0.605. So the instruments or elements used to measure the

consumer purchasing decision have a moderate reliability. It indicates that there is

a consistency in measurement of the 50 respondents.

Cronbach's

Alpha N of Items

.605 5

47

4.3. The Relationship between Marketing Mix (X) and Consumer

Purchasing Decision (Y)

The relationship between marketing mix variables and consumer purchasing

decision of Pro Plan can be seen through the spearman’s rank correlation test. To

see the relationship between two variables, the researcher has to use hypothesis

test below:

H0 : = 0 (marketing mix variables has no relationship towards consumer

purchasing decision of Pro Plan)

H1 : ≠ 0 (marketing mix variables has a relationship towards consumer

purchasing decision of Pro Plan)

By using the SPSS output, the result of the spearman correlation test as follow as:

Table 4.11 Spearman correlation test

Marketing Mix

Consumer

Purchasing

Decision

Spearman's rho Marketing Mix Correlation Coefficient 1.000 .851**

Sig. (2-tailed) . .000

N 50 50

Consumer Purchasing

Decision

Correlation Coefficient .851** 1.000

Sig. (2-tailed) .000 .

N 50 50

**. Correlation is significant at the 0.01 level (2-tailed).

Source : SPSS output

48

From the calculation result above, the reseacher can know that the rank Spearman

(rs) is as big as 0.851. The interpretation is as follow as:

Table 4.12 Coefficient Correlation Level

Source: Sugiyono, 1999:p.183

Based on the table above, the researcher can conclude that there is relationship

between marketing mix and consumer purchasing decision of Pro Plan with the

level of relationship is very strong.

4.4 Hypothesis Testing

After getting the correlation value, the next step is testing wheter the

correlation value is significant or not. Using the significant of 5% the hypothesis

testing will be as follow as:

∝ = 5 %

n = 50

from rs table the researcher get rs table : 0.279.

Source : Zar, (1984 table B.19)

Correlation (r) Correlation level

0-0.199 Very weak

0.2-0.399 Weak

0.4-0.599 Medium

0.6-0.799 Strong

0.8-1 Very Strong

49

H0 : rs = 0 (marketing mix variables has no relationship towards consumer

purchasing decision of Pro Plan)

H1 : rs ≠ 0 (marketing mix variables has a relationship towards consumer

purchasing decision of Pro Plan)

Criteria test: reject H0 if rs > rs table

0.851 > 0.279, so H0 rejected and H1 accepted

Based on the correlation rank Spearman value before, so the researcher got the Z

score as big as:

Z =𝑟𝑠 𝑛 − 1

1

Z =0.851 50−1

1 : 5.957

The Z table with the significant of 5 % can be found that the Z table will be 1.96

If Z score > Z table, it means accept H1

Z score > Z table, it means accept H1

The result is 5.957 > 1.96, so H1 accepted, and it is means that there is significance

correlation between marketing mix towards consumer purchasing decision of Pro

Plan.

50

Figure 4.1 Z test curve

So the researcher has conclude that the relationship between the marketing

mix (X) with the consumer purchasing decision of Pro Plan (Y) based on the

hypothesis testing that has been calculate through the rank Spearman correlation

test and the Z test above have a very strong and significant relationship.

51

4.5. Descriptive Analysis of Most Significant Marketing Mix

Variables

4.5.1 Most significant variables in Product Factor

Figure 4.2 Mean distribution of Product variables

Based on the figure 4.2 above, the researcher can conclude that the most

factor that is influencing the consumers of Pro Plan to buy Pro Plan in product

factor is that because of the quality of the Pro Plan that is the best in the super

premium pet foods category, as the mean goes up to 3.88. The second

consideration of choosing Pro Plan in the product factor is because of the variety

of Pro Plan that the mean is 3.56. While the last score with the mean 3.22 is the

fame of Pro Plan among the super premium pet foods that attract the consumer to

buy Pro Plan.

52

4.5.2 Most significant variables in Price Factor

Figure 4.3 Mean distribution of Price variables

From the figure 4.3 above, the researcher can conclude that the most factor

that is influencing the consumers of Pro Plan to buy Pro Plan in price factor is

that because of flexibility of payment method that the score of mean is 3.46. The

second consideration of choosing Pro Plan in the price factor is because of clear

price list that Pro Plan has that the score of mean is 2.98. While the last score with

the lowest mean 2.72 is the price of Pro Plan that is cheaper than other super

premium pet foods provider.

53

4.5.3 Most significant variables in Place/Distribution Factor

Figure 4.4 Mean distribution of Place/Distribution variables

Based on the figure 4.4 above, the researcher can conclude that the most

factor that is influencing the consumers of Pro Plan to buy Pro Plan in place or

distribution factor is that because of the several transport that Pro Plan provides

to consumer when the consumer buy the Pro Plan in several amount of costs which

the mean shows 3.12. And the second consideration of choosing Pro Plan in the

place factor is because of the place to buy Pro Plan is very comfortable and tidy

with the mean 2.8. While the last score with the lowest mean 2.7 is that Pro Plan

can be easily to get.

54

4.5.4 Most significant variables in Promotion Factor

Figure 4.5 Mean distribution of Promotion variables

From the figure 4.5 above, the researcher can conclude that the most factor

that is influencing the consumers of Pro Plan to buy Pro Plan in promotion factor

is because of the good public relationship that Pro Plan has with their consumers

with mean 3.64. The second consideration of choosing Pro Plan in the promotion

factor is because of an attractive sales promotion that Pro Plan has with mean 3.6.

While the last score with the lowest mean 2.66 is that Pro Plan has an attractive

advertising in several media.

55

4.5.5 Most Significant variables in marketing mix variables

Table 4.13 Mean of Marketing Mix Variables

No Variables Mean

1 Pro Plan quality is the best 3.88

2 Pro plan has a good public relationship with the

consumers. 3.64

3 Pro plan has an attractive sales promotion 3.6

4 Pro Plan has many variety products that suitable with my

pets needs 3.56

5 Pro plan has a flexible payment method. 3.46

6 Pro Plan is a famous brand among the super premium pet

foods 3.22

7

Pro plan provides several transport distributions of Pro

plan to consumer when buy Pro plan in several amount

of costs. 3.12

8 Pro Plan has a clear list Price 2.98

9 Place to buy Pro plan is very comfortable and tidy 2.8

10 Pro Plan price is cheaper than other super premium pet

foods providers. 2.72

11 Pro plan can be easily to get. 2.7

12 Pro plan has an attractive advertising in several media. 2.66

The table 4.13 above shows all the mean of variables which is rank from the

highest to the lowest. The most significant variable is that Pro Plan quality is the

best that comes from the product factor with the mean 3.88, and the second

follow with the Pro Plan has a good public relationship with their consumers with

the mean 3.64.

While the lowest rank is that Pro Plan has an attractive advertising in several

media with the mean 2.66. it is means that Pro Plan does not give enough

attractive advertising in the media that can attract more consumers to buy Pro Plan.

56

CHAPTER V

CONCLUSIONS AND RECOMMENDATIONS

5.1 Conclusions

This chapter will evaluate the problems that have been answered by the

research and give the conclusion and the recommendation. Based on the research

results and problem analysis, the conclusions as follows as:

1. The objective of this thesis is to find the relationship between the

marketing mix variables (X) towards the consumer purchasing decision

(Y) of Pro Plan and to find the most significant variables of Marketing

Mix of Pro Plan by taking the data from 50 questionaire that distributed in

Pekayon pet shop Bekasi. The calculation is using the rank Spearman

correlation and z test to do the hypothesis testing. Using the hypothesis as

H0 (marketing mix variables has no relationship towards consumer

purchasing decision of Pro Plan) and H1 marketing mix variables has a

relationship towards consumer purchasing decision of Pro Plan.

2. Based on the hypothesis testing, the calculation result for the relationship

rank of spearman (rs) is as big as 0.841 which mean that the H1 accepeted.

The score as big as 0.841 has been categorized as a very strong

relationship between the marketing mix variables towards consumer

purchasing decision of Pro Plan. Based on Z test of in significant level of

5% the score is 5.957 that bigger than Z table. It means that the

relationship is significant.

57

3. The marketing mix variables that has the most significance influence by

the consumer of Pro Plan is from the product variables which shows the

highest mean, that is 3.88 the best quality of Pro Plan and the second

position is from the promotion variables which show 3.66 mean that is the

good public relationship that Pro Plan has with their consumer. The third

position is come from the price variables that is the flexibility payment

method of Pro Plan that show 3.46 mean.

5.2 Recommendations

Through this research, the researcher has found some findings regarding to

the marketing mix variables of Pro Plan towards the consumer purchasing

decision. Based on those findings, the company in this case Purina can consider

the following recommendations:

1. The marketing mix variables of Pro Plan that has the lowest rank should

further be noticed by Purina. It can be seen the lowest rank is the media

promotion of Pro Plan by Purina that is not attractive enough to attract the

costumer to buy the Products, and also the second rank from the lowest

mean is the place to buy Pro Plan should be reachable by the costumer.

The third rank is the price of Pro Plan that is more expensive then the

competitor.

2. The rest of marketing mix variables that Pro Plan have should be

balanced. Purina should see not only from the quality of the best produt

that they have which has the most significant among the marketing mix

variables. They should also consider the other things from the other

variables of marketing mix such as the third place of the lowest mean in

the marketing mix variables that is the promotion on how they attract the

costumer to buy Pro Plan towards an attractive advertising in several

58

media. The place or the distribution of the Pro Plan should be reachable

by the costumers. The third lowest mean also should be consider is the

price of the Pro Plan that is more expensive than the other pet foods

competitor. It means Pro Plan should make a competitive price towards

their competitor. The right balanced between each of marketing mix

variables will make Pro Plan can outstanding their position towards their

competitor in the super premium segments of pet foods and get more

consumers to buy their products to increase their sales revenue.

59

BIBLIOGRAPHY

BOOKS:

Burns, Alvin C. and Bush, Ronald F. (2002). Marketing Research. New York:

Person Education International

Cooper, Donald & Schindler, Pamela S. (2006). Marketing Research, 4th edition,

New York: Mcgraw Hill.

David W. Cravens, Nigel F. Piercy. (2005) Strategic Marketing, Eight Edition.

Irwin/ McGraw Hill.

Drucker, P. F. (1954), The practice of management. New York: Harper &

Brothers.

Kotler, Philip & Amstrong, Gary (2000). Principles of marketing (10th ed.). New

York: Pearson International.

Kotler, Philip & Amstrong, Gary (2003). Marketing Insights from A to Z. New

Jersey: John Wiley & Sons, Inc.

Kotler, Philip & Amstrong, Gary (2010). Principles of marketing (13th ed.). New

York: Pearson International.

Lind, Douglas A., Marchal, William G., Mason, Robert D. (2003). Statistical

Techniques in Business and Economics. Boston:McGraw Hill.

Maltohara, Naresh. K. & Peterson, Mark (2002), Basic Marketing Research,

Pearson Prentice Hall.

Peter, P.J. & Donnelly, J.H. (2007). Marketing management: Knowledge and skills

(8th ed.). New York: McGraw- Hill.

Riduwan & Akudon. (2004). Rumus dan data dalam analisis statistika.

Bandung:Alfabeta.

Stinnett, Bill (2005). Think Like Your Consumer. New York: Mcgraw Hill,

Sugiyono, (2000). Metode Penelitian Bisnis. Bandung:Alfabeta.

Zar, J.H. 1984. Biostatistical analysis. 2nd edition. Englewood Cliffs, NJ:

Prentice-Hall.

60

INTERNET

Nestle Purina Indonesia Intranet

http://en.wikipedia.org/wiki/Marketing_mix

http://www.cs.indiana.edu/mit.research.how.to/section3.12.html

http://www.beetl.ru/en/service/forclients/ConsumerPromotion/

http://en.wikipedia.org.wiki/cronbach’s_alpha

http://en.wikipedia.org/wiki/Nestl%C3%A9_Purina_PetCare

http://www.wsivalueonnet.com/2010/11/12/series-digital-marketing-and-the-

consumer-decision-making-process-1-6/

61

APPENDICES

Appendix 1. Questionnaire

Appendix 2. Spearman rank (rs) correlation coefficient table

Appendix 3.1 Validity Variable X

Appendix 3.2 Validity Variable Y

Appendix 4.1 Reliability Variable X

Appendix 4.2 Reliability Variable Y

Appendix 5. Table to help calculate the Rank Spearman Correlation

62

Appendix 1. Questionnaire

Dear Pekayon Pet shop Visitors,

My name is Alvin Javier, a student of President University majoring in

International Business. I would like propose this questionnaire, especially for PRO

PLAN user. This questionnaire is to fulfill my research and in order to complete

my thesis with titled ― The Relationship Between Marketing Mix towards

Consumer Purchasing Decision of Pro Plan, A case Study in Pekayon Pet shop,

Bekasi‖ and obtain my degree at President University.

Please fill the questionnaire below with the right answers, I really appreciate your

time to fill the questionnaire.

Thank you for your assistance,

Alvin Javier

Personal Data Respondents

1. Gender

a. Male

b. Female

2. Age

a. < 20 years

b. 20 – 35 years

c. 36 – 40 years

d. 41 – 50 years

e. > 50 years

3. Length of using Pro Plan

a. < 6 Months

b. >6 Months - <1 Years

c. > 1 Year - < 1,5 Years

d. >1,5 Years - < 2 Years

e. > 2 Years

63

4. The frequency rate of your visit to Pekayon Pet shop in a month to buy Pro

Plan?

a. once a month

b. twice a month

c. once a week

d. twice a week

e. every day

5. Total expenses per month to buy Pro Plan in Pekayon Pet shop?

a. <200,000

b. >200,000 - < 300,000

c. > 300,000 - < 400,000

d. > 400,000 -< 500,000

e. > 500,000

Part 1 . Variable X ( Marketing Mix)

Please cross (x) at the table below.

1. Strongly disagree

2. Disagree

3. Neutral

4 Agree

5. Strongly Agree

Product, x1

No. Variables 1 2 3 4 5

1. Pro Plan has many variety products that

suitable with my pets needs

2. Pro Plan quality is the best

3. Pro Plan is a famous brand among the super

premium pet foods

64

Price, x2

No. Variables 1 2 3 4 5

1. Pro Plan has a clear list Price

2. Pro Plan price is cheaper than other super

premium pet foods providers.

3. Pro plan has a flexible payment method.

Place, x3

No. Variables 1 2 3 4 5

1. Pro plan can be easily to get.

2. Pro plan provides several transport

distributions of Pro plan to consumer when

buy Pro plan in several amount of costs.

3. Place to buy Pro plan is very comfortable and

tidy

Promotion, x4

No. Variables 1 2 3 4 5

1. Pro plan has an attractive sales promotion

2. Pro plan has a good public relationship

with the consumers.

3. Pro plan has a an attratative advertising

in several media.

Part 2 . Variable Y ( Consumer Purchasing Decision)

Please cross (x) at the suitable answer

No

.

Variables 1 2 3 4 5

1. I know exactly about Pro Plan

2. I get information about Pro Plan easily

3. I evaluate Pro Plan before buying pet foods

4. I buy Pro Plan for my daily Pet foods

5. I am really satisfied with the quality of Pro

Plan

65

Appendix 2. Spearman rank (rs) correlation coefficient table