CONSUMERS’ PERCEPTION AND CONSUMERS’ ATTITUDE …repository.uinjkt.ac.id/dspace/bitstream/123456789... · Bentoel Group as producer of Star Mild to do a more intense marketing

CONSUMERS’ PERCEPTION AND CONSUMERS’ ATTITUDE

TOWARDS SAMPOERNA A’MILD AS PIONEER BRAND AND STAR

MILD AS FOLLOWER BRAND IN WEST JAKARTA

Written By:

ABDUL HAFIDH

STUDENT ID : 604081000001

FACULTY OF ECONOMICS AND SOCIAL SCIENCES

UIN SYARIF HIDAYATULLAH JAKARTA

2010

CONSUMERS’ PERCEPTION AND CONSUMERS’ ATTITUDE


MILD AS FOLLOWER BRAND IN WEST JAKARTA

Thesis

Submitted to Faculty of Economics and Social Sciences

As Partial Requirement for Acquiring the Bachelor Degree of Economics

Submitted by:

Abdul Hafidh

604081000001

Under Supervision of

INTERNATIONAL CLASS PROGRAM

MANAGEMENT DEPARTMENT

FACULTY OF ECONOMICS AND SOCIAL SCIENCES

UIN SYARIF HIDAYATULLAH

JAKARTA

1431 H / 2010 M

Today, we administered a comprehensive examination to Abdul Hafidh, ID

604081000001. The title of his thesis is “Consumers’ Perception and

Consumers’ Attitude Towards Sampoerna A’Mild as Pioneer Brand and

Star Mild as Follower Brand in West Jakarta”. After proper examination of

the student, we have decided that he has met all of the requirements for the title of

Bachelor of Economics on the field of Management, State Islamic University

Syarif Hidayatullah Jakarta

Jakarta, March 3rd, 2010

Comprehensive Examination Team

AUTOBIOGRAPHY

Name : Abdul Hafidh

Birth Place / Day : Jakarta / October 9th 1986

Gender : Male

Address : Jl. Nanas No.1 RT 011/RW 002 Kelurahan Jatipulo Kecamatan

Palmerah Kota Administrasi Jakarta Barat 11430

Religion : Islam

Nationality : Indonesia

Hometown : Bima, West Nusa Tenggara

Hobbies : Reading, playing badminton, playing computer, and watching

cinemas

Formal Education

: 1989 – 1991 1991 – 1998

1998 – 2001 2001 – 2004

TK Aisyiah Jakarta SD Negeri Cideng 10 Cilamaya Jakarta

SLTP Negeri 1 Jakarta SMU Negeri 4 Jakarta

Non-formal

Education

: 1992 – 1998 2002 – 2003

2003 – 2004

2004 – 2005

Islamic Education at Al Azhar Jakarta English Course “Basic Levels” at LB-LIA Jakarta English Course until Intermediate 3 “Intermediate Levels” at LB-LIA Jakarta English Course “English Supporting Program” at Syarif Hidayatullah State Islamic University of Jakarta

Organizational

Experiences

: 2006 – Current Remaja Muslim Muhammadiyah Tomang

Life Principle

: Study Hard, Work Hard, Play Hard, Pray Harder

ABSTRAKSI

Dewasa ini persaingan dalam pemasaran produk dan jasa didalam negeri menjadi sangat ketat. Perusahaan produsen mengeluarkan dana yang sangat besar untuk membiayai promosi dan mendanai riset dan pengembangan produknya. Semua hal ini dilakukan untuk menambah pangsa pasar menjadi market leader dalam penjualan produksinya. Perusahaan-perusahaan yang merintis atau yang pertama dalam memasarkan suatu jenis produk harus terus berusaha untuk mempertahankan posisinya diatas pesaingnya. Hal ini tidaklah mudah karena, karena pesaing juga berusaha keras untuk merebut posisi sebagai market leader.

Sampoerna A’Mild merupakan salah satu jenis merek perintis. Sampoerna A’Mild merupakan merek pertama untuk jenis produk rokok rendah tar dan nikotin. Beberapa merek pengikut adalah Star Mild, LA Mild, X Mild, dll. Jika kita dapat mengetahui sikap dan tanggapan konsumen serta apakah kedua variabel ini berpengaruh terhadap isu merek perintis dan pengikut, maka kita dapat membantu produsen Sampoerna A’Mild untuk meningkatkan atau mempertahankan posisinya sebagai market leader dan Star Mild untuk meningkatkan daya saingnya di pangsa pasar dengan jenis rokok rendah tar dan nikotin.

Dalam penelitian ini metode yang digunakan adalah multiple regression dan 100 sampel dari kalangan minimal pendidikan SMU se-Jakarta Barat, maka hasil yang didapat adalah bahwa konsumen memiliki persepsi positif dan sikap positif terhadap Sampoerna A’Mild sebagai rokok perintis dan Star Mild sebagai rokok pengikut.

Berdasarkan uraian diatas, sebaiknya Philip Morris & Co., Ltd., Inc. selaku produsen rokok Sampoerna A’Mild tetap mempertahankan posisinya sebagai market leader dengan tetap memberikan promosi yang gencar dan terus memberikan atau menyediakan informasi tentang produknya tersebut dan Bentoel Group selaku produsen rokok Star Mild untuk terus memasarkan produknya melalui televisi, majalah dan koran agar mutu, manfaat dan rasa dari rokok Star Mild dapat diterima konsumen.

Kata kunci: persepsi konsumen, sikap konsumen, merek perintis, merek pengikut

ABSTRACT

Nowadays, the competition in the marketing of product and services in the Indonesia’s domestic market is very tight. The producer's company spent a huge amount of fund to finance the promotion, and Research and Development of its products and services. All of this is done to achieve a greater market share and to be a market leader. The companies that were actually pioneered in the marketing of certain kind of products always trying to position themselves above all of their competitors. This is not an easy task, because their competitors will also try hard to seize the position of market leader.

Sampoerna A'Mild is the pioneer brand of cigarette with low tar and low nicotine. Several follower brands including Star Mild, La Mild, Bentoel Mild, X Mild, etc. If we discovered the consumer’s perception and attitudes towards Sampoerna A'Mild, then we could help the producer of Sampoerna A'Mild to increase or maintain his position in the market, the same thing was also happen for the producer of follower brands.

In this research, the method conducted is multiple regression and 100 samples from people with minimum education of High School in West Jakarta, then the result of the research is that consumer have a positive perception and attitude towards Sampoerna A’Mild as pioneer brand and Star Mild as follower brand.

From above explanation, it would be better for Philip Morris & Co., Ltd., Inc. as producer of Sampoerna A’Mild to maintain the position of market leader by keep promoting and keep provide information about the product, and also for Bentoel Group as producer of Star Mild to do a more intense marketing through television, magazines, and newspapers to deliver their quality, benefit and good taste to the consumers. Keyword: consumers’ perception, consumers’ attitude, pioneer brand, follower brand

PREFACE

Bismillaahirrahmaanirrahiim.

Assalamu’alaikum Warahmatullaahi Wabarakaatuh.

Alhamdulillahirabbil ‘alamin, all praised be to Allah, God of universe, the

Almighty on everything, that the writer have given the strength to complete this

thesis with the title: “Consumers’ Perception and Consumers’ Attitude Towards

Sampoerna A’Mild as Pioneer Brand and Star Mild as Follower Brand in West

Jakarta", all that is because of Allah’s permission. Shalawat as well as greetings it

is hoped will continue to fall to the Prophet Muhammad SAW, Allah’s personal

choice human kind who is uswah for all of us.

In this chance, the writer would like to thank and appreciate the following

parties that have supported, motivated, and help the writer, especially to:

1. My beloved parents, Aji H. Djafar Sidik, S.H. and Umi Hj. Ragoan, for all the

love, pray, tears of happiness and sadness, trust and encouragement so that I

can finish this thesis. I sincerely love you both from my deepest heart.

2. My cool and awesome lil’ bro, Faisal Azhar for his patience and support all

this time.

3. My beloved brothers and sisters, Kak Diah, Kak Ida, Bang Anwar and Aba

Emo for all support, pray and encouragement.

4. My beloved brothers and sisters, Kak Ani, Kak Sari, Bang Nur, Bang Fatah,

Kak Reni, Kak Eri and Alm. Mas Joko for the support.

5. My nephew Bang Jul, for helping me finding the topic for my thesis.

6. Mr. Prof. Dr. Ahmad Rodhoni, M.M. as my thesis supervisor I who always

encourage me and for helping with his lecture, help, contribution, and time

that he has sacrificed in order for me to complete this thesis.

7. Mr. Dr. Ahmad Dumyati Bashori, BA, MA. as my thesis supervisor II for

helping me with his lecture, help, contribution, and time that he has sacrificed

in order for me to complete this thesis.

8. Mr. Prof. Dr. Abdul Hamid, M.S., as Dean of Faculty of Economic and Social

Sciences State Islamic University of Syarif Hidayatullah Jakarta.

9. Mr. Arief Mufraini, Lc, M.Si. as the Head of International Program.

10. Special thanks to my awesome friends Fajar, Andal and Sofyan for helping me

during my research. I owe you all.

11. All alumni of 1st batch who always telling me jokes, giving me spirits and

supports all this time.

12. My friends Khalil, Rio, Awan, Isma, Novi and Acyd as we have shared good

times together and everyone in International Program that could not be

mentioned one by one.

13. All the staff in International Program Office for handling the required

documents especially Mr. Sugi and Mrs. Atikah.

14. Monon Clan members, Monon-sama Bono ”bono-zero” , Sofyan “garuda69”,

Andal “vogue”, Savirul “sav-godrics”, Fajar “didi” and Uriq “she-kills”. You

guys rocks.

15. Asus A42J for limitless contribution, my dependent partner, hail on you.

16. My handy 2GB Kingston thumb drive for maximum mobile data transfer.

17. Telkom Speedy for internet connection to let me connect to virtual along with

surfing for International Journals.

18. The legendarily powerful yet efficient Toyota Kijang for making me

conveniently moves from one place to another.

I realized that perfection is own by Allah SWT and human being is just be

able to endeavor. Hopefully this thesis can be useful for the next generations.

TABLE OF CONTENTS

VALIDATION PAPER ................................................................................ i

APPROVAL OF COMPREHENSIVE EXAM PAPER ................................. iii

AUTOBIOGRAPHY .................................................................................... iv

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

PREFACE .................................................................................................... vii

TABLE OF CONTENTS .............................................................................. ix

LIST OF TABLES ........................................................................................ xii

LIST OF PICTURES .................................................................................... xv

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

A. Background Problem ...................................................................... 1

B. Problem Formulation ...................................................................... 5

C. The Purpose and Benefits of Research ............................................ 6

II. LITERATURE REVIEW ...................................................................... 7

A. The Definition of Product ............................................................... 7

B. The Definition of Brand ................................................................. 8

1. Power of Brand in Market ....................................................... 10

2. Branding Decision ................................................................... 11

3. Branding Strategy.................................................................... 13

C. The Definition of Consumer Behavior ............................................ 13

1. Motivation............................................................................... 16

2. Perception ............................................................................... 16

3. Learning .................................................................................. 17

4. Learning Theories ................................................................... 18

5. Applying Learning Theories to Marketing Decisions ............... 20

6. Attitude ................................................................................... 21

7. Decision Making ..................................................................... 22

D. Theoritical Framework ................................................................... 24

E. Hypothesis ..................................................................................... 26

III. RESEARCH METHODOLOGY ........................................................... 27

A. Research Scope .............................................................................. 27

B. Sampling Method ........................................................................... 27

C. Data Collection Method .................................................................. 27

1. Primary Data ........................................................................... 28

2. Secondary Data ....................................................................... 29

D. Data Analysis Method .................................................................... 30

1. Descriptive Analysis ............................................................... 30

2. Analysis Method ..................................................................... 33

3. The Classic Assumption Test Multiple Regression .................. 38

E. Operational Variable ...................................................................... 42

1. Independent Variable .............................................................. 42

2. Dependent Variable ................................................................. 42

IV. FINDING AND RESULT ..................................................................... 46

A. Companies Background .................................................................. 46

1. Philip Morris&Co., Ltd., Inc.................................................... 46

2. Bentoel Group ......................................................................... 47

B. General Illustration of Research Object .......................................... 48

1. Location and Time of the Research ......................................... 48

2. Characteristics of Respondents ................................................ 49

C. Finding and Result ......................................................................... 53

1. Validity Test ........................................................................... 53

2. Reliability Test ........................................................................ 53

3. Descriptive Analysis ............................................................... 54

D. Classical Assumption Test .............................................................. 82

1. Autocorrelation Test ................................................................ 82

2. Multicollinearity...................................................................... 83

3. Heteroskesdastisity .................................................................. 85

4. Normality Data ........................................................................ 86

E. Multiple Linear Regression ............................................................ 87

1. Regression Test and Coefficient Correlation ............................ 87

2. Coefficient Determination ....................................................... 89

3. F Test ...................................................................................... 90

4. t test ........................................................................................ 91

V. CONCLUSION AND SUGGESTION ................................................... 94

A. Conclusion ..................................................................................... 94

B. Suggestion ...................................................................................... 95

REFERENCE ............................................................................................... 97

APPENDICE ................................................................................................ 99

LIST OF TABLES

Table 1.1. Table Performance of Sampoerna A’Mild in West Jakarta…….. 4

Table 3.2. Table Performance of Star Mild in West Jakarta………………. 4

Table 3.1. Category High and Low Reliability Instrument………………... 33

Table 3.2. Category High and Low Reliability Instrument Durbin

Watson…………………………………………………………..

39

Table 3.3. Operational Variable Analysis………………………………….. 43

Table 4.1. Table Performance of Philip Morris&Co., Ltd., Inc……………. 47

Table 4.2. Distribution of Questionnaires………………………………….. 49

Table 4.3. Characteristics of Respondents…………………………………. 50

Table 4.4. Tryout Results of Consumers’ Perception and Consumers’

Attitude Towards Sampoerna A’Mild as Pioneer Brand and Star

Mild as Follower Brand…………………………………………

52

Table 4.5. Tryout Results of Consumers’ Perception and Consumers’

Attitude………………………………………………………….

54

Table 4.6. The Importance of Status Between Pioneer Brands and

Follower Brands in Consumers’ Mind…………………………..

55

Table 4.7. The Degree of Favorable Perceptions Between Sampoerna

A’Mild as Pioneer Brands and Follower Brands in Consumer’s

Mind……………………………………………………………..

56

Table 4.8. The Preference of Consumption Between Sampoerna A’Mild

and Star Mild Because of Pioneer and Follower Status…………

58

Table 4.9. The Quality of Sampoerna A’Mild as Pioneer Brands and Star

Mild as Follower Brands in Consumer’s Mind…………………

60

Table 4.10. The Benefit of Sampoerna A’Mild as Pioneer Brands and Star


62

Table 4.11. The Taste of Sampoerna A’Mild as Pioneer Brands and Star


64

Table 4.12. The Advertisement Attraction of Sampoerna A’Mild as Pioneer

Brands and Star Mild as Follower Brands in Consumer’s

Mind……………………………………………………………..

66

Table 4.13. The Packaging Attraction of Sampoerna A’Mild as Pioneer

Brands and Star Mild as Follower Brands in Consumer’s

Mind……………………………………………………………..

68

Table 4.14. The Representation of Simbolization Status of Sampoerna

A’Mild as Pioneer Brands and Star Mild as Follower Brands in

Consumer’s Mind……………………………………………….

70

Table 4.15. The Purchasing Behavior of Sampoerna A’Mild as Pioneer

Brands and Star Mild as Follower Brands Because of Families

or Friends Suggestion…………………………………………...

72

Table 4.16. The Purchasing Behavior of Sampoerna A’Mild as Pioneer

Brands and Star Mild as Follower Brands Because of Attractive

Advertisement…………………………………………………..

74

Table 4.17. The Consumption of Sampoerna A’Mild as Pioneer Brands and

Star Mild as Follower Brands 2 Packs Per Day…………………

76

Table 4.18. The Consumption of Sampoerna A’Mild as Pioneer Brands and

Star Mild as Follower Brands 5 Slops Per Month………………

78

Table 4.19. The Loyalty of Purchasing and Consuming Sampoerna A’Mild

as Pioneer Brands and Star Mild as Follower Brands…………..

80

Table 4.20. Durbin Watson………………………………………………….. 82

Table 4.21. Autocorrelation Test Model Summaryb………………………… 82

Table 4.22. Multicollinearity Test Coefficientsa…………………………….. 84

Table 4.23. Result of Multiple Regression Coefficientsa……………………. 87

Table 4.24. Coefficient Determination (R2) Model Summaryb……………... 89

Table 4.25. F Test ANOVAb………………………………………………… 90

Table 4.26. Test Results of t-test……………………………………………. 91

LIST OF PICTURES

Picture 2.1 The Influence of Consumer Background Characteristics and

Behavioral Process Towards Consumer Purchase

Activities………………………………………………………

23

Graphic 4.1 Heteroskesdastisity Scatterplot……………………………….. 85

Graphic 4.2 Normality P-Plot of Regression Standardized Residual……… 86

CHAPTER I

INTRODUCTION

A. Background Problem

Nowadays, the competition in the marketing of product and services in

the Indonesia’s domestic market is very tight. The producer's company spent

a huge amount of fund to finance the promotion, and Research and

Development of its products and services. All of this is done to achieve a

greater market share and to be a market leader. The companies that were

actually pioneered in the marketing of certain kind of products always trying

to position themselves above all of their competitors. This is not an easy task,

because their competitors will also try hard to seize the position of market

leader. Moreover, there are some of the competitors that actually successful in

seizing the position of market leader from pioneer company and maintaining

it so the position can’t be taken by another companies including the pioneer

company. When some kind of products marketed for the first time, the brand

that was use on the products will always embedded in the consumer’s mind

for a long time, This is become the advantage for the pioneer company

(Alpert, 1995:34).

The use of brand on a product has a very important meaning for the

company that use the brand and for the consumers that bought the product as

well. In mid-centuries, the goods that were sold in the market didn’t use any

kind of brand, label and/or name of the suppliers (Kotler, 2006:256). For the

suppliers that supply goods with good qualities, this could cause a loss to

them, because their good-quality products can’t be differentiated with another

low-quality product from other suppliers. Nowadays, the use of brand has

become a significant factor in the market. Brand not only signifies a name,

but it also characterized the special characteristic of a newly marketed

product.

There are various brands that compete in a market and their power to

compete in a market is vary as well. They include pioneer brands and

follower brands.

According to Alpert (Alpert, 1995:38), pioneer brand is the very first

brand of a new type of product which comes to market while the follower

brand is all brand of the same type of product that enter the market after the

pioneer brand.

According to Alpert (Alpert, 1995:36), the relationship between status of

pioneer and follower brand with perception is because the pioneer brand is

the subject’s first experience with the product, it frames a subject’s

perceptions of the product category and becomes the category prototype.

While the relations between the relationship between status of pioneer

and follower brand with consumers’ attitude is the consumers find themselves

to have a positive attitude toward pioneer brands in general, which partially

explained by the favorable perception of pioneer brands.

The cigarettes industry in Indonesia is intensely developed. This can be

seen by the development of market share this past period. There has been four

big cigarettes company in domestic market and some of small cigarettes

company and also there are some cigarettes companies from foreign

investors.

Four big cigarettes companies including: Gudang Garam, Sampoerna,

Djarum and Bentoel, and from the foreign-investors cigarettes companies

including Marlboro, Kansas, Dunhill, etc. Another cigarettes domestic

companies including Minak Djinggo, Gentong etc.

Sampoerna A'Mild is the pioneer brand of cigarette with low tar and low

nicotine. Several follower brands including Star Mild, La Mild, Bentoel Mild,

X Mild, etc.

Before it was acquired by PT. Philip Morris Indonesia, PT. HM.

Sampoerna firstly built in the form of family business with its product Dji

Sam Soe. In 1992, the increase in the PT. HM. Sampoerna’s market share

occurred, it is because HM. Sampoerna developed the low-tar and low-

nicotine cigarette product known by the brand Sampoerna A’Mild. And

because of the significant increases of PT. HM. Sampoerna Tbk cigarettes

market share, than in Mei 2005 PT. Philip Morris Indonesia decided to

acquire the majority of PT. HM. Sampoerna Tbk shares with the price of Rp.

10.600 per share.

In West Jakarta market, over past 5 years from year 2005 – 2009, the

performance of Sampoerna A’Mild as the pioneer brand of low tar and low

nicotine cigarette keep increasing and keep maintaining its position as market

leader, while the performance of Star Mild as the follower brand is also

increasing but it couldn’t seize the position of market leader from Sampoerna

A’Mild. The data is explained as follows.

Table 1.1.

Table Performance of Sampoerna A’Mild

In West Jakarta

Year 2009 2008 2007 2006 2005

Net Revenues (Rp.

Bill)

1,117.44 1,025.52 997.43 873.96 785.17

Operating Income

(Rp. Bill)

180.72 163.28 154.86 151.37 145.34

Cigarette Volume

(Units in Mill)

1,730.25 1,522.34 1,443.27 1,407.53 1,378.27

Source: Indonesia Stock Exchange

Table 1.2.

Table Performance of Star Mild

In West Jakarta

Year 2009 2008 2007 2006 2005

Net Revenues (Rp.

Bill)

976.49 931.08 823.14 711.43 672.51

Operating Income

(Rp. Bill)

165.22 143.16 129.85 118.74 103.45

Cigarette Volume

(Units in Mill)

1,533.45 1,349.78 1,254.05 1,137.52 1,045.90

Source: Indonesia Stock Exchange

Based on the data performance above, both brands have an increased in

performance during 2005-2009. However, Sampoerna A’Mild as the pioneer

brand can keep maintains its position above Star Mild.

If we discovered the consumer’s perception and attitudes towards

Sampoerna A'Mild, then we could help the producer of Sampoerna A'Mild to

increase or maintain his position in the market, the same thing was also

happen for the producer of follower brands.

Then, based on this background problem, the writer will write this thesis

with a title:

“CONSUMERS’ PERCEPTION AND CONSUMERS’ ATTITUDE


MILD AS FOLLOWER BRAND IN WEST JAKARTA”

B. Problem Formulation

Based on the thesis title that the writer has stated above, the problem that

becomes main concern in this thesis is how the consumers’ perception and

consumers’ attitude towards Sampoerna A’Mild as pioneer brand and Star

Mild as follower brand?

C. The Purpose and Benefits of Research

1. The Purpose of Research

The purpose of research that the writer wants to achieve is to analyze the

consumers’ perception and consumers’ attitude towards Sampoerna

A’Mild as pioneer brand and Star Mild as follower brand.

2. The Benefits of Research

a. To apply the sciences that the writer obtained during study at State

Islamic University of Syarif Hidayatullah and as a form of

contribution to the society based on the writers major of study in the

university.

b. To become an input and consideration for other parties in the form of

final result and information from this research. Especially for the

company that produce pioneer brand product so they can see and

discover the results of this research. For the follower brand, they can

use this research as different approach to attract the consumers.

CHAPTER II

LITERATURE REVIEW

D. The Definition of Product

According to Philip Kotler (Kotler, 2006:344), a product is anything that

can be offered to a market to satisfy a want or need, it can be in the form of

physical goods, services, experiences, events, persons, places, properties,

organizations, informations, and ideas”.

According to Bennet (Bennet, 2001:26), a product is anything an

organization or individual offer exchange that may satisfy customer’s or

consumer’s needs or the marketer own need and he also stated that also stated

product may be a tangible good, an intangible benefit in the form of service,

or even an idea, it may even be person ‘packaged’ for the public.

The Core Product according to Bennet (Bennet, 2001:285) is the basic

good or serviced purchased, aside from its packaging and accompanying

service while core benefit is the need that product fulfills or the problems its

solve. The attributes that supported the core product includes:

1. The package, which includes wrapper, picture, and label that put was

embedded on the product. Its main function is to protect the product.

Besides that, it is also beneficial to promote the product, to give

information, and to attract the consumers.

2. The Product Servicing, which is the maintenance of the product so that it

can work well and the beneficial factors of the product don’t diminish.

3. Warranties, which is the guarantee from the sellers that the product they

sell will meet the consumers’ needs, or if the products failed to meet the

consumers’ needs than the sellers will give compensation to the

purchasers.

4. Brand Image, is the whole concept of the product perceived by the

consumers, it includes various individual perception that together can

create aura that identified and signified the product. The factors that

influence consumers’ view towards the product is the quality of the

wrapper, reputation price, and affectivity of the product.

According to Bennet (2001:289), the benefit of the product not only

come from the core product, but also the packages, product servicing,

warranties and brand. All of this are also contribute on improvement of the

consumers’ perception towards the product. These advantages must be

concerned as the factors that can’t be separated within the consumers’ mind.

E. The Definition of Brand

According to Kotler (Kotler, 2006:256), definition of brand is a name,

term, sign, symbol, or design, or a combination of them, intended to identify

the goods or services of one seller or group of sellers and to differentiate them

from those of competitors. From this definition we can see that brand not only

in the form of a name, but it can also in the form of term, sign, symbol,

design, or a combination of them that it can add dimensions that differentiate

it in some way from other products or services designed to satisfy the same

need. According to Kotler (2006:257), brand has six levels of meanings,

which are:

1) Attribute

Brand is identical with the certain attributes. The world’s strongest

brands share 10 attributes (Kotler, 2006:257), which are:

a) The brand excels at delivering the benefits consumers truly desire.

b) The brand stays relevant.

c) The pricing strategy is based on consumer perceptions of value.

d) The brand is properly positioned.

e) The brand is consistent.

f) The brand portfolio and hierarchy makes sense.

g) The brand makes use of any coordinates a full repertoire1 of

marketing activities to build equity.

h) The brand’s managers understand what the brand means to

consumers.

i) The brand is given proper, sustained report.

j) The company monitors sources of brand equity.

2) Benefit

Brand not only the series of attributes. The consumers doesn’t purchase

the attributes, they purchase the benefit. Attributes needed to be

developed into functional and/or emotional benefit.

1. repertoire (French), means the entire range of skills used in particular field

3) Value

Brand also signifies value. The producer of Mercedes stated that their

product is high performance, safe, high prestige, etc. The brand marketer

has to identify which groups of buyer will purchase those values.

4) Culture

Brand also represents certain cultures. The Mercedes represent Germany

culture, which are: organize, efficient, and high quality.

5) Identity

Brand also represents certain identities. If brand representing a person,

animal, or an object, what would be occurred in our mind? Mercedes

represent logical leader (person), king of lion who likes to order other

animals (animal). Sometimes brand represent the identity of popular

celebrity.

6) The User

Brand can be defined as a kind of consumer that purchase or use that

product. In which it refer to the people that appreciate the values, culture,

and identity of that brand.

1. Power of Brand in Market

The power of brand is within a market (Kotler, 2006:273). There are

five levels of brand power within a market, which are:

a. The brand that is known by the consumer, is a brand that mostly

known by a large number of purchaser within a market.

b. The brand with high level of awareness, is measured by the

acknowledgement memory of the brand.

c. The brand with high acceptance level, is measured by the consumer

who will not refuse to buy the product.

d. The brand with high preference level, is the brand that was chosen

above another brand.

e. The brand with high loyalty level, which is shown by the willingness

of the consumers to find that brand in other places, if they can’t find

the brand in the regular store or market.

Powerful brand is the brand that has high brand equity that was

shown with the higher brand loyalty, awareness of the name, the quality

that is believed in, powerful brand relation and other assets such as,

patents and distribution channel (Kotler, 2006:274).

2. Branding Decision

Nowadays, branding is such a strong force that hardly anything goes

unbranded. When a company decides to brand its products or services, it

must then choose which brand names to use. Four general strategies are

often used (Kotler, 2006:279):

a. Individual names. A major advantage of an individual-names

strategy is that the company does not tie its reputation to the

products. If the product fails or appears to have low quality, the

company’s name or image is not hurt.

b. Blanket family names. A blanket family name also has advantages.

Development cost is less because there is no need for “name”

research or heavy advertising expenditures to create brand-name

recognition. Furthermore, sales of the new product are likely to be

strong if the manufacturer’s name is good.

c. Separate family names for all products. If a company produces quite

different products, it is not desirable to use one blanket family name.

d. Corporate name combined with individual product names. The

company name legitimizes, and the individual name individualizes

the new product.

Furthermore, according to Kotler (Kotler, 2006:281), the qualities

that the brand wants to represent are:

a. It has to represent the criteria that define the benefit of the product.

For example: Frozz, A’Mild, etc.

b. It has to represent the quality definition of the product, like behavior

or color. For example are: Attack, etc.

c. It is important not to have bad meanings or definition of certain

country or language.

3. Branding Strategy

According to Kotler (Kotler, 2006:278), definition of Branding

Strategy is the number of and nature of common and distinctive brand

elements applied to the different products sold by the company. In other

words, devising a branding strategy involves deciding the nature of new

and existing brand elements to be applied to new and existing products.

The decision as to how to brand new products is especially critical.

When a company introduces a new product, it has three main choices

(Kotler, 2006:278):

a. It can develop new brand elements for the new product.

b. It can apply some of its existing brand elements.

c. It can use a combination of new and existing brand elements.

d. When a company uses an established brand to introduce a new

product, it is called Brand Extension, the brand extension can also be

called a sub-brand. An existing brand that gives birth to a brand

extension is referred to the parent brand. If the parent brand is

already associated with multiple products through brand extensions,

then it may also be called a family brand.

F. The Definition of Consumer Behavior

According to Wells (Wells, 2000:5), definition of Consumer Behavior is

the study of individuals and the activities that take place to satisfy their

realized needs. That satisfaction comes from the processes used in selecting,

securing, and using products or services when the benefits received from

those processes meet or exceed consumers’ expectations. In other words,

when an individual realizes that he has a need, the psychological process

starts the consumer decision process. Through this process, the individual sets

out to find ways to fulfill the need he has identified. That process includes the

individual’s thoughts, feelings, and behavior. When the process is complete,

the consumer is faced with the task of analyzing and digesting all the

information, which determines the actions he will take to fulfill the need.

Furthermore, Wells (Wells, 2000:5) also stated that the consumer’s

background characteristics that covered in the consumer behavior are as

follows:

1. Culture, which is the characteristic of certain society that can be

differentiate from other societies.

2. Value, which is the very basic beliefs that the society’s hold about how

the way they think, behave, and feel.

3. Demographic characteristics, which is the physical attributes, social

geography and economy of the consumer that has become part of their

daily activities.

4. Personality, lifestyles, and psychography is the characteristics that

represent the psychology characteristics that influence the individual’s

behavior.

5. Reference groups, which are the people or institutions whose opinions

are valued and to whom a person looks for guidance in his/her own

behavior, values, and conduct, such as family, friends, or celebrities.

The consumer decision-making process consists of five steps (Wells,

2000:8), which are:

1. A consumer becomes aware of a need. This need is triggered either

internally or externally.

2. After the need is identified, the consumer goes through a process to

search for solutions that will fulfill that need. This search involves

identifying criteria that’s important to the consumer. Then the consumer

begins to search for a location where he/she can find the solution.

3. The consumer evaluates the alternatives or options. She takes the

information she collected in Step 2 and processes that information in

order to evaluate her options and arrive at a decision.

4. The consumer makes the purchase based on the information processed in

Step 3. In this step, the consumer determines where to purchase and how

to purchase as well as when she should purchase.

5. The consumer evaluates the purchase. This step focuses on the

psychological response of the buyer regarding the purchase. It’s in this

phase that buyer’s remorse often pops up.

According to Wells (Wells, 2000:45), the process of consumer behavior

is occur from motivation, perception, learning, attitude formation, and

decision making.

1. Motivation

According to Wells (Wells, 2000:227) Motivation is the process by

which an individual recognize a need and takes action to satisfy it. There

are three factors that influence the consumer purposes (Wells, 2000:230),

which are:

a. Background Characteristics, is the background that every human

have in differentiating the brand that will fulfill their needs

b. Available Options, is the choices or options that are available.

c. Marketers and Public Policy, is the factor that can influence

consumer in choosing the consumer purposes.

2. Perception

According to Kurtz (Kurtz, 2008:160) Perception is the meaning that

a person attributes to incoming stimuli gathered through the five senses,

which are, sight, hearing, touch, taste, and smell. Certainly a buyer’s

behavior is influenced by his or her perceptions of a good or a service.

According to Frank H.Alpert and Michael A.Kamins (Alpert and

Kamins, 1995:39), a person’s perception of an object results from the

interaction of five types of factors:

a. The quality of the object.

b. The benefit or usefulness of the object.

c. The five-senses perceived of the object.

d. The promotion attraction of the object.

e. The representation of consumers’ status.

3. Learning

The definition of Learning according to Hawkins (Hawkins,

2002:317) is any change in the content or organization of long-term

memory. This definition doesn’t explain about the cause of the change

and whether this change is fix or not.

The definition of Learning according to Wells (Wells, 2000:28) is

the process by which individuals organize knowledge so that it causes a

permanent change in behavior.

The definition of Learning according to Kurtz (Kurtz, 2008:163) is

the knowledge or skill that is acquired at a result of experience, which

changes consumer behavior. The learning process includes the

component of drive, which is any strong stimulus that impels action.

Fear, pride, desire for money, thirst, pain avoidance, and rivalry are

examples of drives. Learning also relies on a cue, which is any object in

the environment that determines the nature of the consumer’s response to

a drive. Example of cue is a newspaper advertisement for a new

Indonesian Restaurant (a cue for a hungry person).

4. Learning Theories

There are three main categories or philosophical frameworks under

which learning theories fall: behaviorism, cognitivism, and

constructivism (Wells, 2000:28).

a. Behavior Learning Theories

Behaviorism characterize by the investigators that underlying

the assumptions about the process of learning. In essence, three basic

assumptions are held to be true. First, learning is manifested by a

change in behavior. Second, the environment shapes behavior. And

third, the principles of contiguity (how close in time, two events

must be for a bond to be formed) and reinforcement (any means of

increasing the likelihood that an event will be repeated) are central to

explaining the learning process. For behaviorism, learning is the

acquisition of new behavior through conditioning. There are two

types of possible conditioning:

1) Classical conditioning, where the behavior becomes a reflex

response to stimulus.

2) Operant conditioning, where there is reinforcement of the

behavior by a reward or a punishment. Within this framework,

behaviorists are particularly interested in measurable changes in

behavior.

b. Cognitive Learning Theories

Cognitive theories look beyond behavior to explain brain-based

learning. Cognitivists consider how human memory works to

promote learning. For example, the physiological processes of

sorting and encoding information and events into short term memory

and long term memory are important to educators working under the

cognitive theory.

Two key assumptions underlie this cognitive approach:

1) The memory system is an active organized processor of

information, and

2) Prior knowledge plays an important role in learning.

c. Constructive Learning Theories

Constructivism views learning as a process in which the learner

actively constructs or builds new ideas or concepts based upon

current and past knowledge or experience. In other words, "learning

involves constructing one's own knowledge from one's own

experiences." Constructivist learning, therefore, is a very personal

endeavor, whereby internalized concepts, rules, and general

principles may consequently be applied in a practical real-world

context. Aspects of constructivism can be found in self-directed

learning, transformational learning, experiential learning, situated

cognition, and reflective practice.

5. Applying Learning Theories to Marketing Decisions

According to Kurtz (Kurtz, 2008:164), learning theory has some

important implications for marketing strategists, particularly those

involved with consumer packaged goods. Marketers must find a way to

develop a desired outcome such as repeat purchase behavior gradually

over time. Shaping is the process of applying a series of rewards and

reinforcements to permit more complex behavior to evolve.

Both promotional strategy and the product itself play a role in the

shaping process. Some strategies that usually used to influence the

consumer are reward, reception, stimulus generalization and

discrimination, experience, and signs and symbols.

For example, when marketers want to motivate consumers to

become regular buyers of certain merchandise, their first step in getting

consumers to try the product might be to offer a free-sample package that

includes a substantial discount coupon for the next purchase. This

example uses a cue as a shaping procedure.

The second step is to entice the consumer to buy the item with little

financial risk. The discount coupon enclosed with the free sample

prompts this action. Suppose the package that the consumer purchase has

still another, smaller discount coupon enclosed. The satisfactory product

performance and the second coupon provide reinforcement.

The third step is to motivate the person to buy the item again at a

moderate cost. A discount coupon accomplishes this objective, but this

time the purchased package includes no additional coupon. The only

reinforcement comes from satisfactory product performance.

The final step comes when the consumer decides whether to buy the

item at its true price without a discount coupon, Satisfaction with the

product performance provides the only continuing reinforcement.

Therefore, repeat purchase behavior is literally shaped by effective

application of learning theory within a marketing strategy context.

6. Attitude

Perception of incoming stimuli is greatly affected by attitudes. In

fact, a consumer’s decision to purchase an item is strongly based on

his/her attitudes about the product, store, or salesperson.

According to Kurts (Kurtz, 2008:162), attitudes are a person’s

enduring favorable or unfavorable evaluations, emotions, or action

tendencies toward some object or idea. Because favorable attitudes likely

affect brand preferences, marketers are interested in determining the

consumer attitudes toward their offerings.

According to Frank H. Alpert and Michael A. Kamins (Alpert and

Kamins, 1995:40), an attitude has three multiattribute components, which

are:

a. Actual purchase behavior.

b. Consumers’ consumption.

c. Loyalty of product.

7. Decision Making

According to Wells (Wells, 2000:343), the decision making can be

defined as the behavioral process that an individual use to choose certain

product or service that they want to consume.

Consumer Background Characteristics and Behavioral Process that

has already explained above can influence the Consumer Purchasing

Activities. According to Wells (Wells, 2000:37), the consumer purchase

activities can be categorized into seven steps, which are:

a. Need recognition, is happen when consumer know and/or recognize

his/her needs.

b. Search for alternatives, is happen when consumer consider several

available choices that can fulfill his/her needs.

c. Evaluation of alternatives, is happen when consumer consider those

available choices and decide which one is best to fulfill his/her

needs.

d. Purchase and use of products, is happen when consumer make a

decision to purchase certain product and consume it.

e. Evaluation of consumption experience, is happen when consumer

evaluate his/her experience when he/she consume the product, in

which whether the product can fulfill his/her needs or not.

f. Feedback, is the information responsive feedback that the consumer

give about the product that he/she consume to his/her families,

friends, and/or the society environment.

g. End of consumption process, is happen when the consumer stop to

purchase and consume certain product.

Picture 2.1

The Influence of Consumer Background Characteristics and Behavioral Process

Towards Consumer Purchase Activities

Behavioral Process

Consumer Background

Characteristics

Demographic

Personality

Psycography

Lifestyle

Culture

Values

Reference

Group

Consumer Purchase Activities

Need Recognition

Search for

Alternatives

Evaluation for Alternatives

Purchase and

Use of Products

Evaluation of Consumption Experience

Feedback

End of

Consumption Process

(Wells, 2000:45)

M O T I V A T I O N

P E R C E P T I O N

A F T O T R I M T A U T D I E O N

D M E A C K I I

S N I G

O N

D. Theoretical Framework

According to Alpert (Alpert, 1995:38), the pioneer brand define as the

very first brand of a new type of product which comes to market while the

follower brand is all brand of the same type of product that enter the market

after the pioneer brand.

According to Alpert (Alpert, 1995:36), the relationship between status of

pioneer and follower brand with perception is because the pioneer brand is

the subject’s first experience with the product, it frames a subject’s

perceptions of the product category and becomes the category prototype.

While the relations between the relationship between status of pioneer

and follower brand with consumers’ attitude is the consumers find themselves

to have a positive attitude toward pioneer brands in general, which partially

explained by the favorable perception of pioneer brands.

Behavioral Process

Perception (X1) Attitude (X2)

Perception and Attitude towards Pioneer and

Follower Brands

Multiple Linear Regressions

Conclusions and Implications

E. Hypotheses

The hypotheses of this research are:

1.

2.

H01:

HA1:

H02:

HA2:

Consumers’ perception has a positive relations and positive influence

towards Sampoerna A’Mild as pioneer brand and Star Mild as

follower brand matter.

Consumers’ perception doesn’t have any relations and influence



Consumers’ attitude has a positive relations and positive influence



Consumers’ attitude doesn’t have any relations and influence towards

Sampoerna A’Mild as pioneer brand and Star Mild as follower brand

matter.

CHAPTER III

RESEARCH METHODOLOGY

A. Research Scope

In this research, research is done by collecting primary data using

questionnaires and secondary data coming from literature bibliography and

internet. This secondary data applied as input for questionnaire material can

be confirmed as relevant questionnaire in order to know the consumers’

perception and consumers’ attitude towards the pioneer brand and follower

brand issue within the cigarettes market in West Jakarta.

B. Sampling Method

Considering the limitations of time, the writer used the judgement

sampling technique, that is the electing of sample of research randomly that

this information was received by using certain consideration in West Jakarta

that was chosen by the writer. The number of samples is 100 peoples, because

quite represent the number of populations and the level of the error in the

questionnaire is lower (Dr. Sugiyono:2005).

C. Data Collection Method

The writer in used several methods that were taken from the location of

the research. According to Prof.Dr. Suaharsimi Arikunto (2000:134)

“Technique data processing was methods that could be used by the researcher

to gather the data.” According to Sugiyono (2005:139) when considering the

source of the data, then the data collection could be divided into primary and

secondary source. The primary source was the data that directly gave the data

to the collector of the data, and the source secondary was the source that

indirectly gave the data to the collector of the data, like through the other

person or the document. Whereas for the type of the data that is use in this

research in collecting the data is by using the primary data and the secondary

data:

1. Primary Data

The primary data is the research data that was received directly from

the original source (did not go through the intermediary’s media). The

primary data is specially gathered by the researcher to answer the

research question with the survey method using questionnaire (Rahmat

Kriyantono, 2008:95).

The primary data collection is carried out through the sending

questionnaire to the respondent, by means of visiting directly the

respondent from the research location.

Questionnaire contained the questions that were drafted in such a

way, and were aimed at the respondents to give the answer that regarding

the perception and attitude toward Sampoerna A’Mild as pioneer brand

and Star Mild as follower brand in cigarettes industry within West

Jakarta market. Contact method that will be undertaken is by direct

interview with the respondents involved. The samples that will be

interviewed are 100 peoples with education minimum High School

(SMU). The amount of sample taken is 100 peoples because in order to

make this research to be an accurate research. According to Sekaran

(Sekaran, 2003:266), the minimum sample to be used in correlative

research is 30 subjects. The basic of sampling taken is that in order to

make an accurate and right result, than the respondents have to have

minimum adequate educational level.

Therefore, the sampling method that undertaken in this research is

purposive technique, which means by choosing sample from certain

population because they have adequate qualities to be put in the research.

The research will be conducted in West Jakarta area. Samples are

purposive, which means the sample is taken in purpose (non-random)

because the characteristics of the sample are known Sekaran (Sekaran,

2003:266). The sample that will be taken is the sample with minimum

educational level of High School (SMU). The reason is because in this

research, the sample has to understand what is the meaning and what

question will be ask in the questionnaire clearly so that it can minimize

the error in the research conducted.

2. Secondary data

Secondary data will be taken by searching the information in the

library and internet, the researcher performed literature study or library

research to ensure that no important variable that has in the past been

found repeatedly to have had an impact on the problem is ignored.

Literature study is the documentation of a comprehensive review of the

published and unpublished work from secondary sourced of data in the

areas of specific interest to the researcher. Various activities which

researcher does in process of this literature study in the first place is read,

studies and comprehends a number of journals, books, documents, and

material and references which required by the research. This Literature

study also is done by the way of browsing some internet sites related to

this research.

D. Data Analysis Method

1. Descriptive Analysis

The writer gives questionnaire to the respondent to answer those

questions. The question being used is closed-ended question, where

answer allotted in the form of likert scale for every question. Respondent

only choose one of answer which has been provided.

Questionnaire analysis is done by giving value from every answer to

question of questionnaire based on likert scale method, according to

Rosady Ruslan (2008:62):

Strongly agree : value weight 5

Agree : value weight 4

Not sure (neither agree nor disagree) : value weight 3

Disagree : value weight 2

Strongly disagree : value weight 1

Then result of the questionnaire is compiled into form of table which

will be tabulated and the result is presented into form of table is

comprising frequency and percentage respondent opinion.

To examine validity and reliability of the each and every item of the

questionnaires, therefore the writer need to do a test on validity and

reliability first in order to get the good research result try out and must be

done towards several respondents first.

a. Validity Test

The validity test was the testing that used to measure legal or

valid or not from some questionnaire. Some questionnaire was said

valid if the question in questionnaire was able to reveal something

that will be measured by that questionnaire (Ghozali, 2006)

The validity test was carried out with compared r counted (the

table of Corrected Item-Total Correlation) with r the table (the

Product Moment table with the significance 5%) to degree of

freedom (df) = n- 2, in this case n was the number sample the

research totaling n the respondent that had r counted for the value

df=n-2, and some questionnaires was said valid if r counted > r the

table (Ghozali, 2006).

b. Reliability Test

The reliability test was the testing that was carried out to

measure some questionnaire that was the indicator of the variable or

construct. Some questionnaire was said reliable or competent if the

answer is consistent or stable from time to time, and a variable was

said reliable if giving the Cronbach Alpha value > 0.60

(Ghozali,2006).

To test construct reliability in this research will be using

technique cronbach's alpha test.

r = K { 1- ∑σb }

(K-1) σt

Where:

r = Reliability

K = Number of questionnaire

σb = Item variance

σt = Total variance

A certain instrument can be called rely (reliable), if has

coefficient above 0,6 (Yarnest, 2004:68). In Sugiyono (2005), the

score of reliability is differentiating on each of every variable to

interpret low or high of the reliability instrument, as directive is base

on certainty as follows:

Table 3.1

Category High and Low Reliability Instrument

Interval Coefficient Level of Reliability

and Star Mild as follower brand (Y). A multiple regression model was

said linear if filling the condition linearity, like normality the data (both

in a manner the individual and the model) and free from the classic

assumption statistic.

The double linear formula

Explanation

Ŷ = The subject in variable dependent that predictable

a = Price Y if X = 0 (Price constant)

b = The direction figure or the regression coefficient that showed the

increase figure or the decline dependent variable that is based in

independent variable. When b (+) then rise, and when b (-) then

it is going down.

X1 = Consumers’ perception

X2 = Consumers’ attitude

ei = Error term or disturbance

a. The Testing of the Hypothesis from Correlation

The hypothetical test that is used in this research is by using the

analysis of the correlation that is to know how the relations of the

consumers’ perception, consumers’ attitude and Sampoerna A’Mild

Ŷ = a + b1X1 + b2X2 + ei

as pioneer brand and Star Mild as follower brand, that was

formulated as follows:

r = n∑XY - ∑X. ∑Y

√n ∑X2 – (∑X)2 . (n∑Y2) – (∑Y)2

Explanation:

r = Correlation coefficient

n = The number of respondents

X = consumers’ perception and consumers’ attitude

Y = Sampoerna A’Mild as pioneer brand and Star Mild as

follower brand

The rise or the decline from the value x and y is determined by

the existence of linear relations between two variable that did not

affect each other both directly or indirectly, in fact relations could

happen was very weak or did not have linear relations.

By being known that:

r = 0 meant relations x and y did not have the correlation, available

relations really weak.

r = 1 or approached 1, meaning available relations very strong

(strong perfect)

r = Positive, meaning the appreciation x will be followed by the rise

y, and on the other hand the decline thought x will be followed

by the decline y

r = Negative, meaning the appreciation x will be followed by the

decline thought y, and on the other hand the decline thought x

will be followed by the appreciation y.

b. F Test and t Test

To carry out the testing of the hypothesis, then the several

provisions that must be paid attention to is formulating the

hypothesis of zero (Ho), we also must accompany with the

hypothesis alternative (Ha), like as follows:

Ho: ßi = 0 Is not gotten by the influence that was significant

between variable X and variable X with variable Y.

Ha: ßi ≠ 0 Gotten by the influence that was significant between

variable X and variable X with variable Y.

The simultaneous test with this F test aimed at knowing the

influence together variable independent against variable dependent.

With the formula:

F Test = ß / k

(1-R2) / (n-k-1)

If F test > F table, then H0 was refused and Ha was accepted.

Meaning that variable independent simultaneously had the influence that

was significant against variable dependent.

If F test < F table Then Ho was received and Ha was refused, meaning

that variable independent simultaneously did not have the influence that


Whereas to know their respective influence size variable independent

individually (partial) against variable dependent then was carried out with

the T Test with the formula:

t test = b – Se

Sb

Sb = Se

√∑Y2 – [∑X]2

n

Se = √∑Y2 - a∑Y - b∑XY

(n-2)

Whereas:

a = Constants

b = Coefficient correlation

n = the amount of sample

Sb = the standard error of correlation coefficient

Se = the standard error of the estimation

If t test > t table, then Ho was refused and Ha was accepted,

meaning that variable independent partially had the influence that


If t test < t table, then Ho was received and Ha was refused,

meaning that variable independent partially did not have the

influence that was significant against variable dependent.

This analysis also gave information about the determination

coefficient (R2) that is to know the big capacity variable independent

explained variable independent explained variable dependent by

seeing R Square and Adjusted R Square that have been matched with

the number variable independent that was used in the research. The

R Square value (R2) was said good if above 0.5 because of the R

Square value revolved between 0 to 1.

3. The Classic Assumption test Multiple Regression

The linear regression model multiplied could be acknowledged as the

good model if this model filled the assumption normality the data and

freest from the classic assumption statistic, good that autocorrelation,

multicollinearity and heteroskesdastisity.

a. Autocorrelation

Autocorrelation is relations that happened between the members

from a set of observation that was compiled in the series of time that

regarding restrained time that could be interpreted that, correlation

relations from each one variable time now is the same his situation in

the period that will come. One of the testing that was used to know

autocorrelation was with the Durbin Watson Test. The Durbin

Watson Test formula is as follows:

d = ∑( e n – e n-1) ∑ e2 n

Hypothesis:

Ho : there is no correlation

Ha : there is autocorrelation positive/negative

Criteria the testing:

Ho accepted if the Dw value around the figure -2

b. Multicollinearity

The test multicollinearity was needed to know was not variable

independent that had the resemblance with variable independent

other in one model. The resemblance between variable independent

in a model will cause the occurrence of the correlation that was very

strong between variable independent with variable independent that

was other. Moreover, the detection against multicollinearity also

aimed at avoiding the habit in the process of the taking of the

conclusion concerning the influence of the partial test respectively

variable independent against variable dependent.

The detection multicollinearity to a model could be seen from

several matters:

1) If the result Variance Inflation Factor (VIF) not more than 10

and the Tolerance value not less than 0.1, then the model could

be it was said freest from multicollinearity VIF = 1 / Tolerance,

if VIF = 10 then Tolerance = 1/10 = 0.1. It was increasingly

high that VIF then increasingly low Tolerance.

2) If the value of the correlation coefficient between each one

variable independent less than 0.70, then the model could be

stated free from the classic assumption multicollinearity.

3) If thought coefficient the determinant (R-Square) on 0.60 but

was not variable independent that was influential against

variable dependent, then the model was affected

multicollinearity.

c. Heteroskesdastisity

Heterokedastisity tested the occurrence of the difference

variance residual a period of observation to the period of other

observation, or the picture of relations between the value that was

predicted and Studentized Delete Residual this value. The regression

model that had the equality variance residual a period of observation

with the period of other observation, or the existence of relations

befween the value that was predicted and Studentized Delete

Residual this value so as to be able to be said this model

homokedastisity.

Heterokedastisity showed that the variation variable not be the

same for all observation. In heterokedastisity the mistake that was

systematic in accordance with the size of one or more variable.

To know there is or there is not heterokedastisity, the writer had

several methods, which are:

1) See the plot graph between the value of the prediction variable

dependent (ZPRED) and residual him (SRESID). The detection

there was or not heterokedastisity could be carried out with

looking there was or not the certain pattern to the graph

scatterplot between SRESID and ZPRED where the Y fuse was

Y was predicted and the X fuse was residual (Y the prediction of

- Y actually).

2) Analysis basis, if having the certain pattern like the plots that

formed the pattern that was arranged (waved, widened,

afterwards narrowed), then indicated heterokedastisity. If not

having the clear pattern in a manner the plots spread above and

under the point origin to the Y fuse, then did not happen

Heterokedastisity

E. Operational Variable

Variable in this research consist of:

1. Independent Variable

Variable this often was mentioned as variable the stimulus, predictor,

and antecedent. In Indonesian often was mentioned as free variable.

Independent variable was variable that influenced or that to because of

his change or the emergence dependent variable (was tied). In this

research that consider as independent variable independent Consumers’

Perception (X1) and Consumers’ Attitude (X2).

2. Dependent Variable

This variable was mentioned as variable output, criteria, consistent.

In this research, the dependent variable is Sampoerna A’Mild as pioneer

brand and Star Mild as follower brand (Y).

Table 3.2

Operational Variable Analysis

No Variable Sub variable Indicator Scale

1 Consumers’

Perception (X1)

Sources:

“Principles of

Contemporary

Marketing” book

by David L. Krutz

pg. 160-161; and

“An Empirical

Investigation of

Consumer

Memory, Attitude,

and Perceptions

Toward Pioneer

and Follower

Brands” Journal

by Frank H. Alpert

and Michael A.

Kamins

Quality

The quality of

consumer’s product

Ordinal

Usefulness

The usefulness of

consumer’s product

Ordinal

Taste

The taste of consumer’s

product

Ordinal

Advertisement

Attraction

The familiarity degree

of product in

consumer’s mind

Ordinal

Package

The degree of

packaging attraction in

consumer’s mind

Ordinal

Symbolization

Status

The degree of

symbolization status

Ordinal

2 Consumers’

Attitude (X2)

Sources:

“Principles of

Contemporary

Marketing” book

by David L. Krutz

pg. 162-163; and

“An Empirical

Investigation of

Consumer

Memory, Attitude,

and Perceptions

Toward Pioneer

and Follower

Brands” Journal

by Frank H. Alpert

and Michael A.

Kamins

Purchasing

behavior

1. The suggestion

reason from other

consumers

2. The excitement of

advertisement

Ordinal

Consumption

of the

Product

1. The numbers of

consuming the

product in a day

2. The numbers of

consuming the

product in a month

Ordinal

Consumer’s

Loyalty

The loyalty of

consuming the product

Ordinal

No Variable Sub variable Indicator Scale

3 The Status of

Pioneer and

Follower between

Brands

Source:

“An Empirical

Investigation of

Consumer

Memory, Attitude,

and Perceptions

Toward Pioneer

and Follower

Brands” Journal

by Frank H. Alpert

and Michael A.

Kamins

Importance The importance of

status between pioneers

and follower brands in

consumer’s mind

Ordinal

Favorable

Perceptions

The degree of favorable

perceptions towards the

product

Ordinal

Consumer’s

Preference

The preference of

consuming the product

between pioneer and

follower brands

Ordinal

CHAPTER IV

FINDING AND RESULT

F. Companies Background

3. Philip Morris & Co., Ltd., Inc.

The Philip Morris&Co.,Ltd. Inc. was firstly build in 1847 as a single

shop on London’s Bond Street, selling tobacco and ready-made

cigarettes. During Mr. Morris’s death, the business was taken over by his

wife Margaret and his brother Leopold and in 1881 the Company went

public, Leopold Morris joining Joseph Grunebaum to establish Philip

Morris & Company and Grunebaum, Ltd. This partnership was dissolved

in 1885 and the Company became known as Philip Morris & Co., Ltd.

In 1919 was a crucial year for the Company. It saw the introduction

of the Philip Morris coronet logo, the acquisition of the Philip Morris

Company in the U.S. by a new firm owned by American stockholders,

and its incorporation in Virginia under the name of Philip Morris & Co.,

Ltd., Inc. By the end of the next decade, the Company had begun to

manufacture cigarettes in its factory in Richmond, Virginia; in 1924,

what was to become its most famous brand, Marlboro, was introduced.

By the mid-1950s the Company had become a part of American

culture, and soon after it launched Philip Morris International to

manufacture and market its products around the world.

In 2005, Philip Morris & Co., Ltd., Inc. acquires PT. HM Sampoerna

Tbk in Indonesia with the price of Rp. 10,600,- per share and after the

acquisition takes place, the company gain a rapid growth performance

during 2005-2009, as follows:

Table 4.1.

Table Performance of Philip Morris & Co., Ltd., Inc.

Year

2009

2008

2007

2006

2005

Net Revenues ($Mill)

62,080

63,640

55,243

48,260

45,288

Operating Income ($Mill)

10,040

10,248

8,894

8,368

7,735

Cigarette Volume (Units in

Billions)

864

869

848

831

804

Source: http://www.pmi.com

4. Bentoel Group

The history of Bentoel Group began when Ong Hok Liong

established cigarettes home-factory named “Strootjes Fabriek Ong Hok

Liong” in 1930. The home-factory based then change its name to N.V

Pertjetakan Hien An in 1951. Four years later will be known as PT

Perusahaan Rokok Tjap Bentoel.

During 1970s-1980s, Bentoel had rapid growth performance and

became one of the key player in cigarettes industry in Indonesia. In June

17, 2009, BAT International in which centered in London acquired

Bentoel and merge the BAT Indonesia and Bentoel Group as one entity

in Indonesia and in January 1, 2010, Bentoel Group finally licensed as

the member of British American Tobacco International.

G. General Illustration of Research Object

1. Location and Time of the Research

Considering the limitations of time, the writer used the judgement

sampling technique, that is the electing of sample of research randomly

that this information was received by using certain consideration in West

Jakarta that was chosen by the writer. The number of samples is 100

peoples, because quite represent the number of populations and the level

of the error in the questionnaire is lower (Dr. Sugiyono:2005).

The distribution of questionnaires are scattered within 8 Sub-districts

in West Jakarta. The following is the distribution of questionnaires:

Table 4.2.

Distribution of Questionnaires

Cengkareng 13 questionnaires

Grogol Petamburan 13 questionnaires

Taman Sari 13 questionnaires

Tambora 13 questionnaires

Kebon Jeruk 12 questionnaires

Kali Deres 12 questionnaires

Palmerah 12 questionnaires

Kembangan 12 questionnaires

2. Characteristics of Respondents

Questionnaires that have already distributed are 100 questionnaires

to all 100 respondents. All 100 questionnaires given have all been

returned and responded appropriately.

As shown in the table 4.3. below stated the characteristics of

respondents from Gender, Age, Occupation, Income per month, and the

cigarettes that they usually consume between Sampoerna A’Mild and

Star Mild.

Table 4.3.

Characteristics of the Respondents

No. Information Total

1

Gender

Male 80

Female 20

2

Age

17 – 24 years old 20



51 years old – above 20

3

Occupation

Highschool and University Student 20

Entrepreneur 18

Office Employee 24

Government Employee 37

Other 1

4

Income per Month

Less than Rp. 1,000,000.- 20

Rp. 1,000,000 - Rp. 4,000,000.- 59

More than Rp. 4,000,000.- 21

5

Consumption of Cigarettes

Sampoerna A’ Mild 81

Star Mild 19

Source : Primary Data

As shown on the Table 4.3. above, firstly, from the gender

classification consist of 80 males and 20 females. Secondly, from age

classification consist of 20 respondents in between 17 – 24 years old, 39

respondents in between 25 - 35 years old, 21 respondents in between 36 –

50 years old, and 20 respondent that are more than 51 years old. Thirdly,

from occupation classification consist of 20 respondents are Highschool

and University students, 18 respondents are Entrepreneurs, 24

respondents are Office Employees, 37 respondents are Government

Employees, and only 1 respondent that is uncategorized. Fourthly, from

the respondents income per month’s classification consist of 20

respondents that have income less than Rp. 1,000,000.-, 59 respondents

that have income between Rp. 1,000,000 – Rp. 4,000,000.-, and 21

respondents that have income more than Rp. 4,000,000.-. And lastly,

from the respondents’ choice of cigarettes consumption consist of 81

respondents choose to consume Sampoerna A’ Mild and 19 respondents

choose to consume Star Mild. All these interpretations will give us an

introductional picture about the consumers’ perception and consumers’

attitude towards Sampoerna A’Mild as pioneer brand and Star Mild as

follower brand.

Table 4.4.

Tryout Results of Consumers’ Perceptions and Consumers’ Attitude Towards

Sampoerna A’mild As Pioneer Brand And Star Mild As Follower Brand

In West Jakarta

Variable Question Corrected Item-Total Correlation

Pearson Correlation

Cronbach α if Item Deleted

Desc.

Consumer Perception

(X1)

1 0.597 0.351 0.920 Valid 2 0.467 0.351 0.921 Valid 3 0.584 0.351 0.920 Valid 4 0.456 0.351 0.922 Valid 5 0.419 0.351 0.922 Valid 6 0.478 0.351 0.921 Valid 7 0.740 0.351 0.918 Valid 8 0.393 0.351 0.923 Valid 9 0.383 0.351 0.923 Valid

10 0.647 0.351 0.919 Valid 11 0.535 0.351 0.920 Valid 12 0.523 0.351 0.921 Valid

Consumer Attitude

(X2)

1 0.597 0.351 0.920 Valid 2 0.467 0.351 0.921 Valid 3 0.584 0.351 0.920 Valid 4 0.456 0.351 0.922 Valid 5 0.419 0.351 0.922 Valid 6 0.478 0.351 0.921 Valid 7 0.740 0.351 0.918 Valid 8 0.393 0.351 0.923 Valid 9 0.383 0.351 0.923 Valid

10 0.647 0.351 0.919 Valid

Sampoerna A’Mild as

Pioneer Brand and

Star Mild as Follower Brand (Y)

1 0.740 0.351 0.918 Valid 2 0.647 0.351 0.919 Valid 3 0.740 0.351 0.918 Valid 4 0.585 0.351 0.920 Valid 5 0.688 0.351 0.918 Valid

H. Finding and Result

From the table 4.4. shows that all of questions are valid and reliable. This

is provided by there are no negative correlations on the score of the questions.

The pretests have been distributed to 30 respondents. So the questions are

qualified and could be used in the research conducted.

1. Validity Test

Validity test is aimed to measure a questionnaire in order to obtain

the right and accurate questions. The questionnaire is valid while could

be responses to measure (Ghozali, 2006). Requirement of validity is, if

the r counted > r table.

2. Reliability Test

Reliability test is aimed to know the consistency of questionnaire.

From the table 4.5. the score for Cronbach’s Alpha is 0.923. Certain

instruments could be said as reliable if gain coefficient above 0.60,

therefore can be summarize the alpha result from all questionnaires is

very high. This shows that the whole items of questionnaires could be use

for further research and if the same question is distributed, the answer to

it will not be far differed with the previous answers.

Table 4.5.

Tryout Results of Consumers’ Perceptions And Consumers’ Attitude

Cronbach’s Alpha Cronbach’s Alpha

Based on Standard Items N of Items

0.923 0.929 27

Source: Primary Data

3. Descriptive Analysis

The data that is ready for processing will be continued by using

SPSS 16.0 version. The question at second section is using nominal scale

and the other question is measure by likert scale that use 1-5

measurement number, where 1 is representing “strongly disagree” and 5

is representing “strongly agree”.

a. Sampoerna A’Mild as Pioneer Brand and Star Mild as Follower

Brand Variable

Table 4.6.

The Importance of Status Between Pioneer Brands and Follower

Brands in Consumers’ Mind

Evaluation Frequency Percentage

Strongly Agree 40 40%

Agree 37 37%

Neutral 10 10%

Disagree 7 7%

Strongly Disagree 6 6%

Total 100 100%

The table 4.6. shown the importance of status between pioneer

brands and follower brands in consumers’ mind within West Jakarta

market and the results indicate that most of consumers in West

Jakarta have a strong agreement that the status of Pioneer Brands and

Follower Brands of Sampoerna A’Mild and Star Mild is really

important. It represents in the table 4.6. above that 40% of total

respondents have strongly agree opinion, 37% of total respondents

have agree opinion, 10% of total respondents have neutral opinion,

7% of total respondents have disagree opinion, and 6% of total

respondents have strongly disagree opinion.

Table 4.7.

The Degree of Favorable Perceptions Between Sampoerna A’Mild as

Pioneer Brands and Follower Brands in Consumer’s Mind

Positive image of Sampoerna A’Mild as pioneer brands perceived

in consumer’s mind

Evaluation Frequency Percentage

Strongly Agree 47 47%

Agree 30 30%

Neutral 13 13%

Disagree 6 6%

Strongly Disagree 4 4%

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