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KFC Analysis in PDF
KFC Analysis in PDF
By
Hengky Susanto
014200900071
President Univeristy
Cikarang Baru – Bekasi
Indonesia
January 2013
THESIS ADVISER
RECOMMENDATION LETTER
Purwanto, ST, MM
Examiner III
DECLARATIONOF ORIGINALITY
Hengky Susanto
ABSTRACT
Thank you Lord! Thank you Jesus! Thank you for the guiding, blessing while
writing this thesis then I can finish writing this thesis. Without your great blessing, I
can’t finish this thesis Lord! This thesis is to fulfill the requirements for finishing
bachelor degree in economic faculty of President University. I also want to say thank
you very much for;
I realized this research is still has lacking and not perfect, I openly accept for
every comments and suggestions for make this research better. Last, I hope this
research will give benefits for those who needs.
Hengky Susanto
TABLE OF CONTENTS
In this modern era, where the globalization in every sector of business and
modernization in every sector in our lives, make our lives become more complex than
before. In Indonesia the developing country where many foreign or local investor
invest their business to be run in our country, as the result we can see many foreign
companies that run their business in Indonesia. With the total population of two
hundred fifty nine million nine hundred forty thousand eight hundred fifty seven
(259.940.857) on last December 2010, Indonesia has a good potential in developing
business.
The good economic progress also encourage people to just not fulfill they
basic need or primary, but their need also for the secondary need like lifestyle, and the
worst is lifestyle can encourage people to become more consumptive. Lifestyle
according to Kotler, 2011 is person’s pattern of living. Lifestyle change people living
behavior. People eat out home, go to fast food restaurant in late night, take a chit-chat
with their mates late night in coffee café are the examples of lifestyle in nowadays.
Indonesia is a country with the big population, what is the most important of
people need? People needs a food as their basic need for Physiological (Mashlow
hierarchy of need, 2006), then food is become one of their primary needs. A
traditional list of immediate "basic needs" is food (including water), shelter, and
clothing. Thus, the culinary business is the appropriate business to be developed. In
fact, there are so many restaurants business with the local or foreign food.
The foreign fast food, with the adaption to Indonesian cultures, they provide
what Indonesian people like to eat, so they just not provide their original foods. We
can find many variety of fast food when we go to the mall in big cities then go to the
food court area; there are so many fast food restaurants with many people takes their
meal there. The short time for prepare the foods, easy to eat, good taste of the foods,
and affordable food price for specific foods, fast food becoming first choice for
people in big city who has limited time for lunch break and eats, since their time is for
working in all days. Teens, adults, child, or old people loves to eat this fast food,
sometimes they eat with the whole family in the restaurants, or have delivery services
to their home this kind of activities is part of modern lifestyle.
One of many top brands for American fast food is Kentucky Fried Chicken
(KFC). KFC fast food internationally holds by Yum! Brands. Yum! Brands has
38,000 restaurants in over 110 countries and territories. The company brands are
Kentucky Fried Chicken, Pizza Hut, Taco bell, and Wing Street. Those are the fast-
food restaurant brands by Yum! Brand, in other word, KFC doesn’t have any group
companies, but the owner of KFC, Yum! Brands has the group companies like Taco
Bell, Pizza Hut, and Wing Street. As an additional info, A&W and Long John Silver
has dropped from Yum! Brands in last 2011.
The graphic above explain the increasing of total KFC international sales, it
shows the total sales of KFC worldwide including KFC in Indonesia. The increasing
of total sales from 2007 until 2011 show us that fast food industry have a good
potential in year to year. In 2007, KFC international got $7,394 billion, in 2008 KFC
international got $7,840 billion, in 2009 KFC international got $8,230 billion, in 2010
KFC international got $8,554 billion, and in 2011 KFC got $8,920 billion for total
sales.
Seeing this big opportunities to develop the fast food restaurants, to fulfill
what the people in big cities need, then Kentucky Fried Chicken the American fast
food held their business in Indonesia. In Indonesia, Kentucky Fried Chicken retail
business the owner of the franchise is PT Fastfood Indonesia Tbk. established by
Gelael Group in 1978. Same as the international Yum!, KFC with the only one owner
of franchise PT. Fastfood Indonesia Tbk. doesn’t have any group companies in
Indonesia. Various varieties of products, makes Indonesian people like to consume
KFC. From the latest information (tribunkaltim.co.id, 2012), KFC Indonesia has 425
and have target become 440 outlets this year in 95 cities in Indonesia to serve the
consumer. KFC Indonesia focus on fried chicken based food, besides fried chicken;
they also provide another side dishes, beverages and dessert.
3,316,800
Sales in Million Rupiah
2,913,605
2,454,360
2,022,633
1,589,643
Figure 1.2: Total Sales of KFC Indonesia 2007 – 2011, in Million Rupiah
The graphic above explains the sales of KFC in Indonesia increasing from
2007 until 2011. KFC Indonesia has the total of 403 outlets and KFC gets 3.3
quintillion rupiah in 2011 increasing from 2010 just 2.9 quintillion rupiah
(Neraca.co.id, 2012). This increasing sale indicates that Indonesian people have great
interest in purchasing and consuming fast food.
From the Top Brands survey in Indonesia for 2012, Kentucky Fried chicken is
still becomes the top brand of fast food restaurants with the indexing rate of 61.9%
and for the second place is Mc Donald’s with 20.1% of index rate. This Top Brand
2012 survey held in 8 cities: Bandung, Jakarta, Makassar, Medan, Semarang,
Surabaya, Balikpapan, and Pekanbaru. The random samples in each city are 400
persons. The total number of random respondents surveyed is 3250, and the total
number of booster respondents is 850. This survey informs us which brands are
known very well for Indonesian people. Here is the result of Top Brand survey 2012;
Figure 1.3: The Result of Top Brand 2012, category in Retail business of
Fast Food Restaurants.
The result from the survey above explains how Indonesian people still take
KFC as the top of brand in fast food restaurants. KFC Indonesia with the many of
outlets that KFC Indonesia has, we can find it easily everywhere. Even in every big
city and place or areas that have so many people, there will be outlets for KFC. People
can consume this fast food with the many varieties of products whenever they want,
the consumer also can freely consume the products, almost all people with the
different ages and economic condition can consume fast food. But nowadays, for
eating in the fast food restaurants like KFC is not a special thing, it becomes a modern
lifestyle when the family especially the mother doesn’t need to cook and prepared
foods, they just come to the outlets then order the food, eat there with the husband and
their children.
Another reasons that people to consume fast food is the lack of time that
people get in daily works, people usually do anything in an expressway to fulfill what
they need. Working from the morning until afternoon then at night makes people do
not have time to prepare their food then they just go to American fast food like KFC.
Fast food becomes the solution of people who do not have enough time for prepare
their foods. With the 24 hour delivery services (for some outlets), people have their
decision to consuming fast food. With the good economic background, the higher
price when consuming fast food it will not become a matter. People also do not take
attention with the low nutrients ingredients, what they want is just the delicious taste
that can fulfill their hunger. In short, there are many disadvantages for consuming fast
food but people still oftenly consume it.
The first outlet has successful business and it start the way for the opening of
more additional outlets in Jakarta. Also, the outlets expansion to every regional
coverage including other major cities in Indonesia, like Bandung, Semarang,
Surabaya, Medan, Makassar, and Manado. By the many outlets that KFC opens, it
makes KFC become dominant brand in fast food franchise business in Indonesia.
Now KFC has 425 outlets of restaurants to serve Indonesian people in 95 cities in
Indonesia.
1.2.1 Products
KFC has main products in fried chicken, Colonel's Original Recipe and Hot &
Crispy Chicken. KFC products grouped into several categories as Menu Goceng,
Menu Praktis, and package meals. Menu Goceng category, which means are all the
menu items price at Rp5,000 each and not including tax. There are more than 10
menu items providing real value and the most “sell well” items are Mocha Float and
OR Burger Deluxe. To add variety to this Goceng menu category, menu selections
were changed due the changing preferential taste of customers.
On the other hand, Menu Praktis category includes menu items that are easy to
take away and can be consume easily, like Colonel Burger, Twister, Colonel
Yakiniku, etc.
Vision:
Maintain KFC’s market leadership and always be the No. 1 brand in the
QSR(Quick Service Restaurants) business in Indonesia by being the most modern
and favorite restaurant in terms of product, value, service, and assets.
Mission:
This research conducts in scope of KFC Mall Lippo Cikarang, the outlet in
Lippo Cikarang Mall was established on 10th June 1995. The KFC outlet in Lippo
CIkarang Mall has three main services of sales, first there is mother store or main
store in the first floor and in second floor KFC has a small kiosk to serve another
customer, and the last there are home delivery service. The manager of KFC outlet in
Lippo Cikarang Mall is Mrs. Maria Ulfah, with the assistant manager with Mr.
Wasyanto. There are also three shift leaders Mrs. Ameliana, Mr. Teodorus Seru, and
Mr. Ahmad Suseno. In this October, KFC outlet in Lippo Cikarang Mall has 42
people of employees including in mother store, kiosk and home delivery.
These graphics explain the total sales and total customers of KFC outlet in
Lippo Cikarang Mall period of January until October 2012.
Total Sales of Mother store, Kiosk and Home Delivery (IDR)
1,342,716,427
1,045,533,243
951,456,278 976,991,893 943,588,177
937,453,647
1,011,468,685 943,396,157
793,983,438 855,605,480
30000
23870
25000
20313
20000 19448
20444 20978 21089 20910
e 20866 19205
lp 18072
o 15000
e
P
10000
5000
Based from the explanation above, consuming fast food as the part of modern
lifestyle for many people who are busy with their activities and have no time to
prepare foods, so they just take fast food to eat and don’t realize how harmful fast
food for our body. As we know those varieties of fast food are well known as a junk
food. Junk food refers to fast foods which are easy to make and easy to consume, zero
in nutrition value, have only high fat to cause an illness (dietpolicy.com, 2012).
Salted snack foods, candy, gum, most sweet desserts, fried fast food and
carbonated beverages are some of the major junk foods. Fast food that we often to eat
like fried chicken, or another pre heated food, also another drinks with zero nutrition
but has high level of sugar or another chemical ingredient such as coloring and taste
maker can called as a junk food. Comparing the advantages of fast food is faster serve
time and cheap price of food than the disadvantages is more dangerous and harmful
for our body. The problem occurs when consuming fast food is health desease and
monetary problem for several people.
It is become the fact when consuming fast food, it will increase the illness or
diseases risk caused by fast food. The most common disease or serious health problem
are overweight or obesity, diabetic and high cholesterol level to have heart and liver
illness (WHO.int, 2012). Overweight or obesity are both labels for ranges of weight
that are greater than what is generally considered healthy for a given height.
“Overweight and obesity are the fifth leading risk for global deaths. At least
2.8 million adults die each year as a result of being overweight or obese. In addition,
44% of the diabetes burden, 23% of the ischemic heart disease burden and between
7% and 41% of certain cancer burdens are attributable to overweight and obesity”.
Overweight also closely related with high level of fat or cholesterol then it can cause
the possibility of coronary heart disease because the accumulation of plaque of
cholesterol or fat in blood vessel.
Diabetic caused by consuming fast food with high level of sugar (WHO.int,
2012). When consuming fast food usually people have their dessert with another
sweet food or drinks. This sweet food or drinks have high sugar level that potential
causing diabetic disease. This high level of sugar also affects to the obesity disease.
Diabetes increases the risk of heart disease and stroke. 50% of people with diabetes
die of cardiovascular disease.
The dangerous health risk caused by consuming fast food, there are still many
people like to consume it and makes it to become as part of their modern style. People
for sure know the consequence of consuming junk food, but they do not pay attention
to that harmful risk.
When they purchase or buy the product, several factors affected the consumer
behavior; there are cultural factor, social factor, personal factor, and psychological
factor. In this research, researcher takes the personal factor with age and lifecycle,
occupation, lifestyle, personality as the factors. The problem is to find the dominant
factor based on the personal factor that motivates people to consume American fast
food Kentucky Fried Chicken and from the personal factors, researchers want to find
any correlation between the factors and consumer decision to consume fast food.
a. Theoritical Significance
For develop the science study, especially for the economics field study,
this research is conduct. In addition, the researcher hopes this research can
give the contribution and can be used as the reference for the consumer
behavior study and the development of fast food business, so that the fast
food business investors can know more about consumer behavior
especially for the personal factor.
b. Practical Significance
For PT. Fast Food Indonesia Tbk., as the holder of KFC franchising in
Indonesia
To contribute the additional information about the consumber behavior
especially on the personal factor that motivate people to comsume this
American fast food. Based on the result of this research, they can make
new program or another strategies in market their products so the
consumer will purchase or consume more.
c. Academic Significance
Cultural
- Culture
- Sub Culture
- Social Class
Social
- Reference groups
- Family
- Roles and status
Personal
Psychological
- Motivation
- Perception
- Learning
- Belief and attitudes
Based on the aim of the research is that the researcher wants to know, what is
the dominant factor from the personal factor on consumer behavior, that motivate
people to consume American fast food Kentucky Fried Chicken KFC. The researcher
choose KFC, because it is the one of many culinary business industry that serve
American type fast food specially for fried chicken also, the modern lifestyle
nowadays, take people to consume fast food than cooking for their food. This research
is conduct as a case study for KFC outlet in Lippo Cikarang Mall. The researcher
chooses outlets in Cikarang, is for the affordable place to take the research and this
outlet have many customer that consist of young, adults, and old ages people.
Consumer behavior affected from several factors; social, cultural, personal, and
psychological factor, the researcher limited the scope of the research is just on the
personal factor.
There are many factors from characteristics of consumer that affect person to
consume or decide purchasing goods, the researcher chooses personal factor in
consumer behavior that motivate people to consume the American fast food because
the factors in personal such as age, occupation, economic situation, lifestyle and
personalities are the most interesting factor to be researched. Age are the factor that
influenced person to buy some products, because the maturity level in thinking
influenced person to purchase and consume the products, people also nowadays think
how to adjust what kind of goods that they purchase and consume based on their
occupation and economic situation. To consume or purchase the non-cheap goods,
they must think about their economic situation in condition of manage their outcome
to be lower than their income. Lifestyle and personalities also influenced how they
lives in this modern era, so it will affect what products or brands that they purchase.
Null Hypothesis (Ho3): Economic situation factor has no influence toward to people
purchase decision in purchasing and consuming fast food.
Alternate Hypothesis (Ha3): Economic situation factor has influence toward to people
purchase decision in purchasing and consuming fast food.
Null Hypothesis (Ho4): Lifestyle factor has no influence toward to people purchase
decision in purchasing and consuming fast food.
Alternate Hypothesis (Ha4): Lifestyle factor has influence toward to people purchase
decision in purchasing and consuming fast food.
Null Hypothesis (Ho6): All Personal factors in consumer behavior have no influence
toward to people purchase decision in purchasing and consuming fast food.
Alternate Hypothesis (Ha6): All Personal factors in consumer behavior have influence
toward to people purchase decision in purchasing and consuming fast food.
1.10 Definition of Term
Fast Food: Type of food that can be served quickly. Usually as a pre-cooked food
or freeze food. this food was designed for ready availability, use, or
consumption and with little consideration given to quality. There are so
many types of fast food for example American fast food such as fried
chicken, hamburgers and pizza. This fast food is available in outlets or
fast food restaurants.
Junk Food: Also known as fast food, fast food is junk food. it can be called as junk
food because the ingredients or the food nutrition in the fast food has
very low level of nutrition. Generally, Junk food has high in calories
level but low in nutritional content or value.
Franchise: Is model of business that giving a license for a branch holder. People
can open their business under another companies name or brands to
sell their products, there was a fee to buy the franchising license.
Diabetic A disease that can be caused by consuming fast food, another side
dishes or beverages that contains high level of sugar. Majority people
get diabetic types – 2, it caused by negative or poor lifestyle that
people have.
1.11 Chapter Outline
Chapter I Introduction
This consumer behavior from the definitions above, can be explained also as
study for a process of how consumer or people have their decision to select, purchase,
or consuming goods or services based on their needs and get the satisfaction from the
purchasing decision. According to Peter, J. Paul 2005; consumer behaviors involves
the thoughs and feelings people experience and actions they performed in
consumption processes, it also includes all the things in the environment that
influences thouthgt, feelings and actions”
Not all people will buy the same products; they have their own thinking
before deciding to purchasing goods or services. Consumer behavior refers to the
selection, purchase and consumption of goods and services for the satisfaction of their
wants. There are different processes involved in the consumer behavior. Initially the
consumer tries to find what commodities they would like to consume, then they
selected any goods or services that they think is the best. After selecting the products,
the consumer makes an estimate of the available money that they can spend.
Lastly, the consumer analyzes the prevailing prices of commodities and takes
the decision about the goods that they will purchase. The all consumers combine into
consumer market, the definition of consumer market according principles of
marketing a global perspective book is “all the individuals and households who buy or
acquire goods and services for personal consumptions.”
Consumer behavior deals with why people want to buy and why people do not
want to buy the products. Consumer purchases are influenced by the characteristic of
the consumer behavior such as cultural factor, social factor, personal factor, and
psychological factor.
a. Cultural factor
b. Social Factor
c. Personal Factor
d. Psychological Factor
Characteristics of consumer behavior
Purchase Decision
Cultural factors have strong influence to consumer behavior. According to Kotler and
Armstrong, 2008, there are three factors inside cultural factors; culture, subculture,
and social class.
a. Culture
c. Social Class
Every society has a social class structure. Social classes are society’s relatively
permanent and ordered divisions in a society whose members share similar
values, interests, and behaviors. Social class not only determined from single
factor such as income, but also measured combination of occupation, income,
education, wealth, and other variables.
a. Reference Group
Grioups that have direct influence and to which a person belongs are called
membership group, membership group serve as direct or indirect points of comparison
or reference in forming a person attitudes and behavior. When a person decides to buy
a product, reference of groups gives recommendation and influence that person mind
to buy or do not buy the products, so it will affect the consumer behavior.
b. Family
Family members can strongly influence buyer behavior. The family is the
most important consumer buying organization in society. The members of the family
can give influence when the person in the family wants to purchase some products or
services.
c. Roles and status
People usually choose the products appropriate to their roles and status. For example,
person in the family is a father, and in the organization is a vice president, then in
company he will buy clothes that reflects his role and status in the organization as the
vice president.
a. Motivation
The level of motivation also affects the buying behavior of customers. Every
person has different needs such as physiological needs, biological needs, social needs
etc. Therefore, a need becomes a motive when it is more pressing to direct the person
to seek satisfaction. Motive is a need that is sufficiently pressing to direct the person
to seek satisfaction of the need.
Another theory for human need, by Maslow from the book “essential
management” by Harold Koontz & Heinz Weihrich. (2006). Abraham Maslow
explained the hierarchy of needs why people driven by particular of needs at
particular times. From the most pressing at the bottom to the last pressing at the top.
c. Learning
Customer possesses specific belief and attitude towards various products. Beliefs and
attitudes make up brand image and affect consumer buying behavior. Belief is a
descriptive thought a person has about something, may be based on the
knowledge,opinion, or faith and may or may not carry an emotional charge. Attitudes
describes a person relatively consistent evaluations, feelings, and tendencies toward
object or idea.
People change the goods and services that they buy over the lifetimes. Taste in food,
clothes, furniture, and recreation are often age related. There will be different from
young age person taste to old age person taste, this different based on the age. Life
cycle stage for example from the single, married, have a family, unmarried, or another
cycle stage will affect the consumer behavior.
There are five segments of life age;the youth segment includes customer younger than
18. Getting started consists customer aged 18 to 35, who are going through first
experience in their lifes for example graduated, first job, first marriage. Builders
customer aged 35 to 50 are in the peak of earnings years. Accumulators aged 50 to 60
worry about saving for retirement and wisely investing. The last is preservers,
customer aged above 60 want to maximize their retirement income to maintain a
desired style.
b. Occupation
A person occupation affects the good or services that people bought and the
occupation of a person has significant impact on his buying behavior. For example the
white collar who works in a company as the manager, they will buy clothes that suit
for their occupation, not the informal but formal clothes and another example a
marketing manager of an organization will try to purchase business suits, whereas a
low level worker in the same organization will purchase rugged work clothes.
c. Economic Condition
Consumer economic situation has great influence on his buying behavior. If the
income and savings of a customer is high then he will purchase products that are more
expensive. On the other hand, a person with low income and savings will purchase
inexpensive products. Marketers of income sensitive goods watch trends in personal
income, savings, and interest rates. The economic condition of personal and the
current economic issue will affect customer’s decision before buying goods and
services. The personal economic condition of the cardholders cover; spendable
income, savings and assets, debts, borrowing power, and also attitudes toward
spending and saving.
d. Lifestyle
Each person’s distinct personality influences his or her buying behavior. Personality
refers to the unique psychological characteristics that lead to relatively consistent and
lasting response to one’s own environment. Personality changes from person to
person, time to time and place to place. Therefore it can greatly influence the buying
behavior of customers. Actually, Personality is not what one wears; rather it is the
totality of behavior of a man in different circumstances. It has different characteristics
such as: dominance, aggressiveness, self-confidence etc which can be useful to
determine the consumer behavior for particular product or service. Many marketers
use a concept related ro personality, a person self-concept also called as self image.
The basic self concept premise is that people possessions contribute to and reflect
their identities.
Need Recognition
Information Search
Evaluation of alternatives
Purchase decision
Postpurchase behavior
1. Need recognition
In this first step, person or consumer realize and discover the needed. The
buying process starts with need recognition in other word, buyer recognizers a
problem or need. the need can be started by internal stimuli when one of the person’s
normal needs for example hunger, thirst to a level high enough to become drive and
for the external stimuli for example, if one of the person thinking about buying car
after they discussed with another people.
2. Information search
3. Evaluation of Alternatives
4. Purchase Decision
After the evaluation, consumer ranks brands and forms purchase intention. Consumer
may form an intention to buy the most preferred brand or the buyer’s decision about
which brand to purchase. In purchase decision, there are two factors between purchase
intention and purchase decision. First is an attitude of others, other people that
important to the customer could change the decision of purchasing one product. the
second factor is an unexpected situational factors, the consumer may form a purchase
intention based on expected income, expected prize, and product benefits or an
unexpected events may change the purchase decision.
The stage of the buyer decision process in which the consumers takes further
action after purchase, based on the satisfaction or dissatisfaction of the products that
they purchase. The consumer can be categorized to satisfied or dissatisfied after a
purchasing from the relationship between the consumers expectation and products
perceived performance. If the product falls from customer’s expectation, it will make
the customer disappointed. If it meets expectation then the customer is satisfied, if it
exceeds expectation then the consumer is delighted.
CHAPTER III
RESEARCH METHODOLOGY
Statement of Problem
Literature Review
Survey
Pre-Questionnaire
No
Validity and Reliability Test
Yes
Final Questionnaire
Conclusion
The research was conducted in Lippo Cikarang Mall, the respondents are
people who are purchasing and consuming American fast food. In this research, the
researcher takes a study case or the limitation of the research in Kentucky Fried
Chicken, the fast food or quick service restaurants outlet in Lippo Cikarang Mall.
First, the preliminary research or to gathering data for pre-questionnaire was conduct
at November 2012, and using the questionnaire methods. After the researcher finishes
the pre-test questionnaire and testing a validity and reliability test, the researcher
conducted the final Questionnaire in December 2012 by using the same method of
Questionnaire.
In this research, the researcher collected the data from the surveys to the
manager of the outlet, literature review, internet research, and questionnaires as the
primary data. To analyze the collected data, researcher used SPSS program version
16.0, and Microsoft Excel program.
3.4.1 Survey
In this research, before doing the pre-questionnaire test, the researcher seeks
information, problems, and the phenomena of any issue that related to the researcher
major, management, concentration in International Business. Researcher takes this
problem of analysis of consumer behavior especially in personal factor that influence
people toward purchase decision or consuming the American fast food, and in this
case, the researcher take a case study in Lippo Cikarang Mall. As mentioned above,
the researcher takes target of respondents for the survey is people who are purchase or
consuming American fast food.
3.4.2 Questionnaire
The researcher to gathering the primary data uses questionnaire, then the raw
data from the questionnaire need to be processed to become the result. The questions
or statements in the researcher questionnaire represent of every variables that
researchers used in this research. Every variable has more than one statement, and it
will be tested with the respondents. The questionnaire was invented by Sir Francis
Galton.
Questionnaire in this research is conducted to know what are the most factor
that affect people toward purchase decision of purchasing or consuming the American
fast food. first, for the pre-testing the questionnaire, researcher has 28 questions or
statements that represent of five X (independent) variables and one Y(dependent)
variable. In the pre-questionnaire testing, researcher distributes the questionnaire for
20 people. After processing the pre-test questionnaire, and doing a validity and
reliability test, researcher adjust the statements into 25 statements. The adjustment
needed because only the valid and reliable statements can be used for final
questionnaire. Manual questionnaire used by the researcher in this research by
distribute to the people in the research place, then the data need to be coded manually
into the Ms. Excel before processing with SPSS program.
Manifest
Factors Variables Measurements Scale
Variables
For analyzing the data, the researcher used SPSS program and Microsoft
Excel. The SPSS software version 16.0 used to facilitate researcher in processing the
data from the questionnaire. Ms. Excel 2007 versions also used by the researcher for
coding the Likert Scale data from the questionnaire then continue processing with
SPSS.
To get the primary data in this research, the researcher doing a survey by
questionnaire. Determination of sample in the survey is very important because it will
affect the level of accuracy of the data and the research. The researcher using non-
probability sampling technique, non probability sampling is a method where some
elements of the population have no chance of selection and the researcher create big
sample size to make more possibility if there is representing all the different
characteristics of the respondents. For the sampling method, the researcher use
purposive sampling, purposive sampling also known as judgmental sampling, where
the researcher choose or decide the sample from population that appropriate for
conducting the research.
Researcher decided to use a method to determine the minimum sample for this
research. The method is called Slovin Method. Slovin's formula allows a researcher to
sample the population with a desired degree of accuracy and also it gives the
researcher an idea of how large his sample size needs to be to ensure a reasonable
accuracy of results. The formula of Slovin Method is shown below:
n=
n = Number of Samples
N = Number of Population
e = Error Tolerance
In this case, the population of the people who are buying or eating in the KFC
outlet in Lippo Cikarang Mall are around 120 people in a day and the error tolerance
is 5%, the number of sample is:
n=
n = 92.3
n = 93
From the calculation of the formula above, the researcher sample, consist of
93 respondents for this research.
Before the researcher starts the final questionnaire for the research, there is a
step known as pre-test questionnaire. In the pre-test questionnaire the researcher takes
a samples in total of 20 people, to test the questionnaire before distribute to the final
samples in total of 71 respondents. After collecting the pre-test questionnaire result of
20 people, the researcher take a pre test statistics such as validity and reliability test
by using the SPSS Ver. 16.0 program.
In the pre-test questionnaire, the researcher can asses more about the
questionnaire, the respondent understanding of the question in questionnaires, clarity
about the statement in questionnaire, also in the processing of validity and reliability
test, the researcher can improve the validity and reliability of every statement in the
questionnaire.
r=
In this research, researcher use SPSS version 16.0 to do validity testing, the result
of the validity test comes from comparison between “r” computation and “r” table.
“r” computation result comes from the SPSS calculation and “r” table comes from
“r” value of Pearson product moment which using 0.05 confidence level, and 20
respondents with the degree of freedom of 0.444 value.
Manifest r r
Factors Remarks
Variables Computation Table
X1.1 0.613632 0.444 Valid
Age & X1.2 0.744364 0.444 Valid
Life X1.3 0.83277 0.444 Valid
Cycle X1.4 0.84209 0.444 Valid
X2.1 0.673167 0.444 Valid
X2.2 0.80974 0.444 Valid
Occupa-
X2.3 0.647178 0.444 Valid
tion
X2.4 0.68674 0.444 Valid
X2.5 0.710355 0.444 Valid
X3.1 0.909161 0.444 Valid
Economic X3.2 0.580665 0.444 Valid
Situation X3.3 0.277165 0.444 Invalid
X3.4 0.729358 0.444 Valid
X4.1 0.833908 0.444 Valid
X4.2 0.909161 0.444 Valid
Life style X4.3 0.738782 0.444 Valid
X4.4 0.739648 0.444 Valid
X4.5 0.071264 0.444 Invalid
X5.1 0.703796 0.444 Valid
Persona-
X5.2 0.565148 0.444 Valid
lity &
X5.3 0.603821 0.444 Valid
Self
X5.4 0.658435 0.444 Valid
Concept
X5.5 0.411876 0.444 Invalid
Y1.1 0.671015 0.444 Valid
Y1.2 0.68893 0.444 Valid
Purchase
Y1.3 0.636391 0.444 Valid
Decision
Y1.4 0.811333 0.444 Valid
Y1.5 0.860608 0.444 Valid
Source: SPPS Ver. 16.0 and Construct by Researcher
Table 3.4 Result of Validity Test
Manifest r r
Factors Remarks
Variables Computation Table
α=
Where,
α = Instrument reliability’s coefficient
r = mean correlation coefficient between variables
k = number of questions
α > .9 Excellent
α> .8 Good
α > .7 Acceptable
α > .6 Questionable
α > .5 Poor
α < .5 Unacceptable
Reliability Statistics
Cronbach’s
Alpha N of Items
.967 25
This is the result of the SPSS software in the reliability test. The researcher
gets the cronbach’s alpha value for 0.967 for 25 statements after eliminating the
invalid statements. Before eliminating the invalid statements, researcher gets
Cronbach’s Alpha value for 0.961 from 28 statements.
The researcher concludes that the questionnaires result from validity and
reliability test is valid and reliable for a research study.
3.6.3 Mean score (MS) & overall mean score (OMS) Calculation
This analysis should be done in order to get the description about response
from respondents toward this problem where this analysis does the calculation per
variable or indicator (Sudijono, 2006, p.84). Calculation in this analysis based on the
formula below:
Where,
Xi = Score
= Frequency
After finished with the data per indicator, next step is calculating the overall
mean score toward variables in the research. This calculation will be done based on
the formula below (Sudijono, 2006, p.48):
Where:
= Overall average
n = Amount of respondents
After finished with OMS and MS, next step is classifying the data into class
interval where this process will give description about respondent opinion toward the
variables. This process will be done based on the formula below:
i=
Where:
i = Class interval
From the formula above, scale of interval class for this research can be
conclude as following below:
= 0.8
From the scale of interval class, interval class can be divided into:
b. Multicollinearity
c. Autocorrelation
d. Heteroscedasticity
This test become is important since it has purpose to analyze the relationship
between independent variable and dependent variable which is become the main
problem in this research. According to Wijaya, 2011, p.91 the formula for processing
this test as following below:
Where:
Y= dependent variable purchasing decision
a = Constanta
X1 = independent variable age and life cycle
X2 = independent variable occupation
X3 = independent variable economic situation
X4 = independent variable lifestyle
X5 = independent variable personality and self concept
b1 = age and life cycle regression coefficient
b2 = occupation regression coefficient
b3 = economic situation regression coefficient
b4 = lifestyle regression coefficient
b5 = personality and self concept regression coefficient
e = random error
3.6.7 Hypothesis Test
Hypothesis test used in order to know whether the total of sample in the
research has already strong enough to describe the population or not. Requirement
that used for this test is p value (sig) < α , since the researcher use α level in this
research is 5% so α = 0,05. This requirement use to reject H0 and accept H1
F Test
The aim of this test is to know whether all of independent variables (X)
simultaneously give significant effect to dependent variable (Y) or not. The criteria
that used to reject H0 and accept H1 is F computation > F table according to Sunyoto,
D (2011) and the formula to know value of F table is
Where:
V1 = df numerator = amount of variables (k) – 1
Where:
Fo = Value of F computation
b = Regression coefficients
X = Independent variable
The aim of this test is to know whether each of independent variable (X) has
significant effect to dependent variable (Y) or not. The following below is the criteria
which used for this test:
For determining the value of t manually, it can use the formula as following
below:
Where:
= Value of t computation
= Regression coefficients
For 2 tailed test, value of α also should be divided into 2. To determine the
value of t table, the formula is t α/2 (n-k). For determining the decision for hypothesis
on this test can use the value of significance on coefficients table with the criteria:
The scale of r value is between 0 \< r >/ 1, where : r = 1 , it means that the influence
of dependent and independent variable are positive perfectly (if the r value is getting
closer to 1, the effect is getting stronger and more positive). r = 0, it means that there
is no correlation between dependent and independent variable.
R2 in the next column r is to know how much of dependent variable (Y) can be
explained by the independent variable (X). the rest of R square value is explaining for
another factor.
CHAPTER IV
ANALYSIS OF DATA AND INTERPETATION OF
RESULT
In collecting the data for the research, the researcher shares 25 valid
statements to people in the KFC outlet in KFC Lippo Cikarang Mall by distributing
questionnaire, after get permission from the manager of the outlet for conducting
research in the fast food outlet. The researcher used offline system questionnaire,
means the researcher went to the outlet for distribute the questionnaire directly to the
people who are purchase or consuming the fast food.
The figure below explain the data based on the primary data collected from the
questionnaire, the characteristic of respondent for gender for this research are 34 male
respondents or 37% and 59 female respondents or 63% of 93 people that participate in
this research who are purchasing or consuming fast food in KFC outlet at Lippo
Cikarang Mall. The respondent majority is female. They are worker, who had lunck
break, work in the Lippo Cikarang area, or mothers who take their children for meals.
Male Female
37%
63%
The figure below explains for the characteristic of respondent based on their
age, the researcher classified the age into three groups. First, there are total of 29
respondents or 31% that have age ranged from 17 until 25 years old. Second, there are
total of 41 respondents or 44% that have age ranged from 26 until 35 years old. And
the last, there are 23 respondents or 25% have their age above than 35 years old. Since
the KFC fast food restaurant can consumed by all age people, so there are many
people that have variety age have their meal there. Majority respondents are employee
who had lunch break in KFC outlet.
25%
31%
44%
Figure 4.2 Age Distribution Chart
The figure below explains the education background of respondents in the research,
there are 4 respondents or 4% that have their education background for elementary
school until senior high school. Then, there are 33 respondents or 36% have the
education for diploma degree. Last, 56 respondents or 60% have their education for
university degree.
36%
60%
d. Occupation Background
12%
7% 28%
53%
Figure 4.4 Occupation Background Distribution Chart
e. Monthly Income
49%
36%
This figure explained the data collected from the questionnaire. For the
monthly income, fewer than 5 million Rupiah per month there are 46 respondents or
49%. 33 respondents or 36% have their income between 5 until 10 million Rupiah per
month. 10 respondents or 11% have income between 11 until 15 million Rupiah. 2
respondents or 2% have their income in range 16 until 20 million Rupiah per month,
and last there are 2 respondents or 2% that have their income more than 20 million
Rupiah per month. The respondents purchase decision in purchasing their meal at
KFC, indicates the economic condition for all respondents are good.
4%
96%
This is the result of mean score (MS) and overall means score (OMS) analysis
through 93 respondents that participate in this research. This test purpose is to know
the response from the respondents for the agreement level to the factor, by analyzing
statements or indicators from every variable in the questionnaire. There are five
interval class that explains the response from respondents to the statements or
indicators, there are; 4.21 – 5.00 is strongly agree, 3.41 – 4.20 is agree, 2.61 – 3.40 is
average, 1.81 – 2.60 is disagree and 1.00 – 1.80 is strongly disagree.
Table 4.1 Mean Score and Overall Mean score for Age & Life Cycle
Manifest Mean
Factors Variables Interval Result
Variables Score
Menu of American fast
X1.1 food is match with my 3.77 3.41 – 4.20 Agree
taste.
I often invite my family
X1.2 members, to have meal 3.45 3.41 – 4.20 Agree
Age &
here.
Life This fast food restaurant is
X1.3 great choice when I had 3.83 3.41 – 4.20 Agree
Cycle
little time to have meal.
I feel comfort to have meal
X1.4 here, in this fast food 3.74 3.41 – 4.20 Agree
restaurant.
Overall Mean Score 3.70 3.41 – 4.20 Agree
Source: Primary data, Construct by Researcher
From the result MS and OMS table of age and lifecycle, we can see the 93
respondents are agree that age & lifecycle are affecting their purchasing decision in
purchasing or consuming American fast food KFC in Lippo Cikarang Mall. The
overall mean score value is 3.70 indicate that respondents are agree with the
indicators or statements.
Table 4.2 Mean Score and Overall Mean score for Occupation
Manifest Mean
Factors Variables Interval Result
Variables Score
I often to eat here while
X2.1 having lunch break or free 3.3 2.61 – 3.40 Average
time at office
I often eat here and hang in
X2.2 this fast food restaurant 3.28 2.61 – 3.40 Average
with my business friend.
This fast food restaurant
X2.3 outlet is near with my work 3.31 2.61 – 3.40 Average
Occupa-
office.
tion I often meet with my
X2.4 business clients or clients 2.75 2.61 – 3.40 Average
of my work here.
In my opinion, this
X2.5 restaurant can be a place
3.27 2.61 – 3.40 Average
to meet with my client
business.
Overall Mean Score 3.18 2.61 – 3.40 Average
Source: Primary data, construct by Researcher
From the table above, the respondent’s response for occupation factor that
affecting their purchase decision in purchasing the fast food are average. The overall
mean score is 3.18 which indicates the average. The average means not all
respondents are agree or disagree with the statements or in neutral condition.
Table 4.3 Mean Score and Overall Mean score for Economic Situation
Manifest Mean
Factors Variables Interval Result
Variables Score
The price of menu that this
X3.1 Fast food restaurant 3.77 3.41 – 4.20 Agree
offered is quite affordable.
I often to eat this American
X3.2 fast food like this and it not
Economic 3.54 3.41 – 4.20 Agree
affect my financial
Situation condition.
Cost incurred to eat here in
X3.4 comparison to cook my 3.33 2.61 – 3.40 Average
own food is almost equal.
Based on the table above, the respondents response is agree with the economic
situation can affect to their purchase decision to purchasing fastfood. The overall
mean score is 3.54 for this economic situation factor means respondents agree to this
factor.
Table 4.4 Mean Score and Overall Mean score for Lifestyle
Manifest Mean
Factors Variables Interval Result
Variables Score
I like to eat here and
X4.1 hanging out with my 3.82 3.41 – 4.20 Agree
friends here.
X4.2 I like to eat here with my
3.46 3.41 – 4.20 Agree
family.
Lifestyle
I prefer to have meal
X4.3 outside than cooking at 2.98 2.61 – 3.40 Average
home.
X4.4 Culinary in American fast
food is one of my hobbies. 3.13 2.61 – 3.40 Average
Overall Mean Score 3.34 2.61 – 3.40 Average
Source: Primary data, construct by Researcher
The respondents response about lifestyle will affect their purchase\ decision is
average. This means respondents in neutral condition, agree and disagree for this
statements or factor. The table above shows the total of overall means score is 3.34,
which means average.
Table 4.5 Mean Score and Overall Mean score for Personality & Self Concept
Manifest Mean
Factors Variables Interval Result
Variables Score
I like the menu, taste, and
X5.1 variety of food in this 3.98 3.41 – 4.20 Agree
American fast food.
Persona- X5.2 This American fast food has
3.66 3.41 – 4.20 Agree
many food menus to offer.
lity & In my opinion, KFC is still
X5.3 number one for taste and
Self 3.89 3.41 – 4.20 Agree
quality of food compare to
Concept other brands.
X5.4 Service given in this outlet
3.94 3.41 – 4.20 Agree
is very good.
Overall Mean Score 3.86 3.41 – 4.20 Agree
Source: Primary data, construct by Researcher
For personality and self-concept factor, based on the table above, respondents
are agree with this factor that personality and self concept will affect their purchase
decision in purchasing or consuming fast food. The overall mean score for this factor
is 3.86, which means the respondents are agree with the factor or statements.
Table 4.6 Mean Score and Overall Mean score for Purchase Decision
Manifest Mean
Factors Variables Interval Result
Variables Score
I am purchasing this fast
food menu because of
Y1.1 great taste and various 4.16 3.41 – 4.20 Agree
Purchase menus that match with my
style.
Decision
I am purchasing this fast
Y1.2 food menu because of this
3.91 3.41 – 4.20 Agree
outlet serve a comfort
place to have meal and
hanging with my business
friends.
I am purchasing this fast
Y1.3 food menu because of the 3.78 3.41 – 4.20 Agree
affordable price offered.
I am purchasing this fast
food menu because it can
Y1.4 full fill the needs of people
3.92 3.41 – 4.20 Agree
lifestyle (meal with family,
hanging with friends or
family).
I am purchasing this fast
food menu because this
Y1.5 outlet has various menu, 4.11 3.41 – 4.20 Agree
comfort place, great
facilities and good service.
Overall Mean Score 3.97 3.41 – 4.20 Agree
Source: Primary data, construct by Researcher
For purchasing decision, the respondents are agree with the purchase decision
in consuming fast food. The total value of overall mean score based on the table
above is 3.97, which indicates the respondents are agree with the factor and
statements or indicators.
Descriptive Statistics
Std.
N Range Minimum Maximum Mean Deviation Variance
Valid N
93
(listwise)
Source: SPSS Program Ver.16.0
The table above is the result of descriptive statistics from the questionnaire
data, processed by SPSS program. N means total of respondents, the researcher take
93 sample of respondents. For y1, it has 7 for range, 16 for minimum, 23 for
maximum, 19.90 for mean statistic, .167 for mean std. error, 1.609 for standard
deviation and 2.588 for variance statistic. For X1, it has10 for range, 8 for minimum,
18 for maximum, 14.80 for mean statistic, .216 for mean std. error, 2.072 for standard
deviation and 4.295 for variance statistic. For X2, it has 19 for range, 6 for minimum,
25 for maximum, 15.91 for mean statistic, .396 for mean std. error, 3.821 for standard
deviation and 14.601 for variance statistic. For X3, it has 10 for range, 5 for
minimum, 15 for maximum, 10.75 for mean statistic, .228 for mean std. error, 2.200
for standard deviation and 4.840 for variance statistic. For X4, it has 13 for range, 7
for minimum, 20 for maximum, 13.39 for mean statistic, .247 for mean std. error,
2.387for standard deviation and 5.696 for variance statistic. For X5, it has 9 for range,
10 for minimum, 19 for maximum, 15.25 for mean statistic, .179 for mean std. error,
1.730 for standard deviation and 2.993 for variance statistic.
Collinearity Statistics
Tolerance VIF
.537 1.863
.572 1.748
.642 1.558
.688 1.453
.763 1.310
Durbin-Watson
1.425
positive autocorrelation occurs when the value of DW test result <-2 , autocorrelation
does not occur if the value of -2 <= DW test result <= +2, negative autocorrelation
occurs when the value of DW test result > +2. From the table above, the researcher
can concludes that autocorrelation is not happen, because the Durbin Watson test
result is 1.425
For normality test, the researcher use normal probability plot graphics and
histogram from the SPSS program. The aim of normality test is to know if the
distribution of the data is normal or not. According to Sunyoto, D. (2011), the pattern
of circle dot position must near of diagonal line in the box, and the distribution of the
data must not curved to the left or right. For the histogram, the good result must have
a good bell shape normal curve and the histogram have the highest bar. Here is the
result of normality test,
Figure 4.7 Normality Test Probability Plots Graphic
From the scatter plot result above, the researcher concludes heteroscedasticity
does not happen and data can be processed and analyzed.
The researcher used multiple regression test method to know the influence of
personal factor in characteristics of consumer behavior toward people purchase
decision in purchasing or consuming the American fast food, study case in KFC the
American fast food restaurant in Lippo Cikarang Mall. After distributing the
questionnaires consist of statements or indicator for every factors to the 93 repondents
that participate in this research, the researcher got result after processing the data by
SPSS program Ver.16.0 and the result are in the table below;
Table 4.10 Result of Multiple Regression Test (Coefficients)
a
Coefficients
Unstandardized Standardized
Coefficients Coefficients Correlations
Zero-
Model B Std. Error Beta t Sig. order Partial Part
1 (Consta
8.819 1.042 8.461 .000
nt)
a. Dependent Variable:
y1
Source: SPSS program, ver. 16
From the result of the table above, the researcher use standardized coefficients
beta for concluding the equation for multiple regression. According to Sunyoto D.
(2011), the “a” value or Constanta value is cannot be used in this research, because
the five independent factors are not having any unit to calculate people purchase
decision. From the standardized coefficients table above, the researcher concludes the
multiple regression equation is;
Y= 0.194X1+0.200X2+0.256X3+0.083X4+0.335X5
Where:
Y = Purchase Decision
X1 = Age and Lifecycle
X2 = Occupation
X3 = Economic situation
X4 = Lifestyle
X5 = Personality and Self Concept
T-Test
For the T test, researcher used T table from computation to be compare with
the T-table. T computation is value of “t” from the SPSS coefficients table. With the
93 respondents, the researcher use T value from T table with the respondents of 91
(93-2) and with the significance level 0.05, it is 1.98638. If T computation < t table,
H0 Accepted, Ha Rejected and if t computation > t table, H0 Rejected, Ha Accepted.
From the table of coefficient table above, the researcher can conclude;
a) From the coefficients table, column of T, the T value of first factor (X1) age
and life cycle, the T value (2.171) is bigger than T table (1.986). This means
Ha1 accepted and age and life cycle factor has influence toward people
purchase decision.
b) From the coefficients table, column of T, the T value of second factor (X2)
occupation, the T value (2.307) is bigger than T table (1.986). This means Ha2
accepted and occupation factor cycle has influence toward people purchase
decision.
c) From the coefficients table, column of T, the T value of third factor (X3)
economic situation, the T value (3.134) is bigger than T table (1.986). This
means Ha3 accepted and economic situation factor has influence toward
people purchase decision.
d) From the coefficients table, column of T, the T value of fourth factor (X4)
lifestyle, the T value (1.045) is smaller than T table (1.986). This means Ha4
rejected and Ho4 accepted, thus lifestyle factor has no influence toward people
purchase decision.
e) From the coefficients table, column of T, the T value of fifth factor (X5)
personality and self-concept, the T value (4.467) is bigger than T table (1.986).
This means Ha5 rejected and personality and self-concept factor has influence
toward people purchase decision.
F-Test
ANOVAb
Total 238.129 92
b. Dependent Variable: y1
The ANOVA table above explains about the result of ANOVA test or F test.
The main point of F test is to know the influence between Age & Life Cycle(X1),
Occupation(X2), Economic Situation(X3), Lifestyle and Personality(X4) & Self-
concept(X5) toward people or consumer purchase decision in purchasing or
consuming the American fast food. The result from the F test, ANOVA table is F
value get 29.152 with the significance level 0.000.
Because of the significance level is (0.000) lower than the alpha value in the
research (0.05) it means, the (Ha6) is accepted and (Ho6) rejected. F table value for
this research, with 93 respondents, total of 6 variables, and significance level 0.05, is
2.32, thus the F-test computation result is 29.152. The F computation value higher
than F table value, then researcher can concludes that Age & Life Cycle, Occupation,
Economic Situation, Lifestyle and Personality & Self concept significantly affect or
have the significant correlation toward people purchasing decision in purchasing or
consuming American fast food KFC
Table 4.12 Result of Multiple Regression Test (Model Summary)
Model Summaryb
Change Statistics
Std. Error
Mod R Adjusted of the R Square F Sig. F
el R Square R Square Estimate Change Change df1 df2 Change
a
1 .791 .626 .605 1.011 .626 29.152 5 87 .000
b. Dependent Variable: y1
Source: SPSS program, ver. 16
The Model Summary table above explains the R and R Square. First, the result
of R-value in the table above is 0.791 or 79.1%. In the other words, correlation
relationship between the five X factors (Age & Life Cycle, Occupation, Economic
Situation, Lifestyle and Personality & Self concept) toward people purchase decision
is 79.1%. Last, the result of R Square in the table is 0.626, this means 62.6% people
purchasing decision can be explained by five X factors (Age & Life Cycle,
Occupation, Economic Situation, Lifestyle and Personality & Self concept) above.
Moreover, the rest 37.4% (100% - 62.6%), people purchasing decision can be
explained by other factors.
In this part, the researcher will describe the result of this research about the
influence of Personal factor in characteristic of consumber behavior toward people
purchase decision in purchasing or consuming fast food KFC, study case in KFC
Lippo Cikarang Mall. Based on the ANOVA test or F-test table result, the
significance level is 0.000 lower than the alpha level 0.05 (5%), that means variable
of Age & Life Cycle(x1), Occupation(x2), Economic Situation(x3), Lifestyle and
Personality(x4) & Self-concept(X5) in this research affect or influence people
purchase decision.
a) Age and lifecycle (X1) toward Purchase decision (y)
From the result of multiple regression tests, the researcher can conclude; the
first factor, Age and life cycle stage (X1) has influence toward people purchase
decision. People purchase decision in purchasing goods or services are changeable
during their ages and lifetimes. From the questionnaire data, respondents are agree
with the menu of American fastfood that is match with their taste. The respondents
are also like to invite their family member to eat at American fast food KFC Lippo
Cikarang Mall. The short time break can be factor that people decide to have their
meal at this fast food restaurant and people are agreed to feel comfort to had meal in
the outlet.
Second factor, occupation (X2) also has influence toward people purchase
decision in this research. Occupation can determine how goods or services that people
purchase or buy. High position of a person, will make their decision for purchasing
the expensive, good, or match with their occupation. From the respondents answer,
they are all having average of opinion that occupation can affect their decision to eat
in the outlet, where average means people are agree and disagree or moderate to
assess the statements. Researcher can conclude their purchase in KFC affected by
their occupation for example the position of their jobs, outlet is near from their office,
or another factor such as follow their business mates to have meal there.
Third factor, economic situation (X3), affects the people purchase decision in
consuming fast food. The basic of people purchase ability is their ability to buy with
considering their income. Income level of a person will affect their savings and
consumption. Higher income of person will also increase the level of savings and
increase their consumption. Lower income of a person will decrease their savings and
decreasing their consumption. The indicators of economic situation can affect their
decision in purchasing fast food can be seen from the respondents opinion.
Respondents are agree that price of fast food menu is affordable, the purchasing of
American fast food menu will not affect their economic condition, and the cost
occurred when cooking at home than buying fast food is almost equal.
d) Lifestyle (X4) toward Purchase decision (y)
Lifestyle (X4) or the fourth factor in this research has less influence toward
their purchase decision in purchasing American fast food KFC. Lifestyle is a part of
people, how do they live in activities, interest and opinions (AIO). Activities
dimension for example, work, hobbies, shopping, sports, interest for example, food or
culinary, fashion, entertainment, family, and opinion for example social issue,
business, and products. The researcher concludes the respondent consists of cikarang
people do not have same lifestyle for people that live in another city such as Bekasi
and Jakarta. In fact, the lifestyle between people in Cikarang is different with people
in Jakarta, this lifestyle differences caused by several factors such as, social
environment, economic background and the personality of the people. The different
lifestyle in American fast food culinary interest create a different result, so from the
result data, the lifestyle factor has less or no influence toward people purchase
decision in purchasing American fast food KFC. The different lifestyle in American
fast food culinary interest create a different result, so from the result data, the lifestyle
factor has less or no influence toward people purchase decision in purchasing
American fast food KFC.
Last, Personality and Self-concept (X5) is the fifth factor in this research that
has influence to people purchase decision. From the data, the researcher can conclude
all respondents agree with their personal and their self-concept that influence their
purchase decision in purchasing fast food. People have different personalities and self
concept, but in this research, all of respondents have their same personality for having
their meal in American fast food KFC because of their personal reasons such as they
love to consume the American fast food especially KFC menu. Another reason for
personality and self concept is KFC restaurant has variety menu, delicious taste and
quality of food, service, etc better than another American fast food restaurant.
From the explanation above, the researcher concludes the people purchase
decision 62.6% affected by five factors above and for the individual factor. The most
dominant factor influence people purchase decision is personality and self-
concept factor(X5), it can be seen from T-test result, with the highest t computation
value (4.467) than another variables. According to Sunyoto, D. (2011), the dominant
factor can be seen from the highest result of t-test value. When consuming fast food or
often called as junk food, people must consider about the risk of health that caused by
consuming fast food. From this research, 96% of respondent knows about the health
risk but they ignores it and continue their purchasing because of the personality and
self-concept factor that most affect their purchase decision.
CHAPTER V
CONCLUSIONS AND RECOMMENDATIONS
5.1 Conclusion
Kentucky Fried Chicken is one of many quick service restaurants that sells
fast-American food menu in Indonesia, for Indonesian people KFC is still number one
to be chosen for several fast food restaurants, proof with the top brand survey in 2012.
Indonesian people love to consume this American fastfood menu. With the high risk
of health if consuming the fast food so much, mostly people are aware for the risk,
and still want consume it. There are many serious health illnesses caused by
consuming fast food. Why people want to consume it? What factors those motivate to
consume the fast food?
From the multiple regression analysis, researcher got the formula for this
research Purchasing Decision = 0.194X1+0.200X2+0.256X3+0.083X4+0.335X5. F test
result, with the F table (29.152) is higher than F computation (2.32) then all
independent factors has significant correlation toward dependent variable. T test
result, X1, X2, X3, X5 has significance correlation toward dependent variable(Y) and
X4 has not significance toward dependent variable (Y).
5.2 Recommendation
From the conclusion, the researcher has several recommendations for object
study in increasing people purchase decision in purchasing or consuming fast food
KFC;
b) For factor or variable that has not influence toward people purchase
decision (X4), KFC should care about the lifestyle factor of Cikarang people. If it
possible, than the company can take study about learning people lifestyle in
Cikarang for increasing company sales. People’s lifestyle is different from one
place to another place; the strategy must be different for facing the different
lifestyle. For example, Cikarang people would like to hangout and have meal with
their children, to attract more customers, KFC can improve the playground area
for the customer’s children, and then the children like to play there while having
their meals.
REFERENCES
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Jersey: Pearson Education. pp. 245
Wijaya,Tony (2011). Cara Cepat Menguasai SPSS 19.0. Yogyakarta: Cahaya Atma
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Internet
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Starting a Business." From
http://www.entrepreneurrookie.com/business-planning/why-franchising-is-better-
for-some-entrepreneurs-than-starting-a-business/.
By
Hengky Susanto
014200900071
President Univeristy
Cikarang Baru – Bekasi
Indonesia
January 2013
THESIS ADVISER
RECOMMENDATION LETTER
Purwanto, ST, MM
Examiner III
DECLARATIONOF ORIGINALITY
Hengky Susanto
ABSTRACT
Thank you Lord! Thank you Jesus! Thank you for the guiding, blessing while
writing this thesis then I can finish writing this thesis. Without your great blessing, I
can’t finish this thesis Lord! This thesis is to fulfill the requirements for finishing
bachelor degree in economic faculty of President University. I also want to say thank
you very much for;
I realized this research is still has lacking and not perfect, I openly accept for
every comments and suggestions for make this research better. Last, I hope this
research will give benefits for those who needs.
Hengky Susanto
TABLE OF CONTENTS
In this modern era, where the globalization in every sector of business and
modernization in every sector in our lives, make our lives become more complex than
before. In Indonesia the developing country where many foreign or local investor
invest their business to be run in our country, as the result we can see many foreign
companies that run their business in Indonesia. With the total population of two
hundred fifty nine million nine hundred forty thousand eight hundred fifty seven
(259.940.857) on last December 2010, Indonesia has a good potential in developing
business.
The good economic progress also encourage people to just not fulfill they
basic need or primary, but their need also for the secondary need like lifestyle, and the
worst is lifestyle can encourage people to become more consumptive. Lifestyle
according to Kotler, 2011 is person’s pattern of living. Lifestyle change people living
behavior. People eat out home, go to fast food restaurant in late night, take a chit-chat
with their mates late night in coffee café are the examples of lifestyle in nowadays.
Indonesia is a country with the big population, what is the most important of
people need? People needs a food as their basic need for Physiological (Mashlow
hierarchy of need, 2006), then food is become one of their primary needs. A
traditional list of immediate "basic needs" is food (including water), shelter, and
clothing. Thus, the culinary business is the appropriate business to be developed. In
fact, there are so many restaurants business with the local or foreign food.
The foreign fast food, with the adaption to Indonesian cultures, they provide
what Indonesian people like to eat, so they just not provide their original foods. We
can find many variety of fast food when we go to the mall in big cities then go to the
food court area; there are so many fast food restaurants with many people takes their
meal there. The short time for prepare the foods, easy to eat, good taste of the foods,
and affordable food price for specific foods, fast food becoming first choice for
people in big city who has limited time for lunch break and eats, since their time is for
working in all days. Teens, adults, child, or old people loves to eat this fast food,
sometimes they eat with the whole family in the restaurants, or have delivery services
to their home this kind of activities is part of modern lifestyle.
One of many top brands for American fast food is Kentucky Fried Chicken
(KFC). KFC fast food internationally holds by Yum! Brands. Yum! Brands has
38,000 restaurants in over 110 countries and territories. The company brands are
Kentucky Fried Chicken, Pizza Hut, Taco bell, and Wing Street. Those are the fast-
food restaurant brands by Yum! Brand, in other word, KFC doesn’t have any group
companies, but the owner of KFC, Yum! Brands has the group companies like Taco
Bell, Pizza Hut, and Wing Street. As an additional info, A&W and Long John Silver
has dropped from Yum! Brands in last 2011.
The graphic above explain the increasing of total KFC international sales, it
shows the total sales of KFC worldwide including KFC in Indonesia. The increasing
of total sales from 2007 until 2011 show us that fast food industry have a good
potential in year to year. In 2007, KFC international got $7,394 billion, in 2008 KFC
international got $7,840 billion, in 2009 KFC international got $8,230 billion, in 2010
KFC international got $8,554 billion, and in 2011 KFC got $8,920 billion for total
sales.
Seeing this big opportunities to develop the fast food restaurants, to fulfill
what the people in big cities need, then Kentucky Fried Chicken the American fast
food held their business in Indonesia. In Indonesia, Kentucky Fried Chicken retail
business the owner of the franchise is PT Fastfood Indonesia Tbk. established by
Gelael Group in 1978. Same as the international Yum!, KFC with the only one owner
of franchise PT. Fastfood Indonesia Tbk. doesn’t have any group companies in
Indonesia. Various varieties of products, makes Indonesian people like to consume
KFC. From the latest information (tribunkaltim.co.id, 2012), KFC Indonesia has 425
and have target become 440 outlets this year in 95 cities in Indonesia to serve the
consumer. KFC Indonesia focus on fried chicken based food, besides fried chicken;
they also provide another side dishes, beverages and dessert.
3,316,800
Sales in Million Rupiah
2,913,605
2,454,360
2,022,633
1,589,643
Figure 1.2: Total Sales of KFC Indonesia 2007 – 2011, in Million Rupiah
The graphic above explains the sales of KFC in Indonesia increasing from
2007 until 2011. KFC Indonesia has the total of 403 outlets and KFC gets 3.3
quintillion rupiah in 2011 increasing from 2010 just 2.9 quintillion rupiah
(Neraca.co.id, 2012). This increasing sale indicates that Indonesian people have great
interest in purchasing and consuming fast food.
From the Top Brands survey in Indonesia for 2012, Kentucky Fried chicken is
still becomes the top brand of fast food restaurants with the indexing rate of 61.9%
and for the second place is Mc Donald’s with 20.1% of index rate. This Top Brand
2012 survey held in 8 cities: Bandung, Jakarta, Makassar, Medan, Semarang,
Surabaya, Balikpapan, and Pekanbaru. The random samples in each city are 400
persons. The total number of random respondents surveyed is 3250, and the total
number of booster respondents is 850. This survey informs us which brands are
known very well for Indonesian people. Here is the result of Top Brand survey 2012;
Figure 1.3: The Result of Top Brand 2012, category in Retail business of
Fast Food Restaurants.
The result from the survey above explains how Indonesian people still take
KFC as the top of brand in fast food restaurants. KFC Indonesia with the many of
outlets that KFC Indonesia has, we can find it easily everywhere. Even in every big
city and place or areas that have so many people, there will be outlets for KFC. People
can consume this fast food with the many varieties of products whenever they want,
the consumer also can freely consume the products, almost all people with the
different ages and economic condition can consume fast food. But nowadays, for
eating in the fast food restaurants like KFC is not a special thing, it becomes a modern
lifestyle when the family especially the mother doesn’t need to cook and prepared
foods, they just come to the outlets then order the food, eat there with the husband and
their children.
Another reasons that people to consume fast food is the lack of time that
people get in daily works, people usually do anything in an expressway to fulfill what
they need. Working from the morning until afternoon then at night makes people do
not have time to prepare their food then they just go to American fast food like KFC.
Fast food becomes the solution of people who do not have enough time for prepare
their foods. With the 24 hour delivery services (for some outlets), people have their
decision to consuming fast food. With the good economic background, the higher
price when consuming fast food it will not become a matter. People also do not take
attention with the low nutrients ingredients, what they want is just the delicious taste
that can fulfill their hunger. In short, there are many disadvantages for consuming fast
food but people still oftenly consume it.
The first outlet has successful business and it start the way for the opening of
more additional outlets in Jakarta. Also, the outlets expansion to every regional
coverage including other major cities in Indonesia, like Bandung, Semarang,
Surabaya, Medan, Makassar, and Manado. By the many outlets that KFC opens, it
makes KFC become dominant brand in fast food franchise business in Indonesia.
Now KFC has 425 outlets of restaurants to serve Indonesian people in 95 cities in
Indonesia.
1.2.1 Products
KFC has main products in fried chicken, Colonel's Original Recipe and Hot &
Crispy Chicken. KFC products grouped into several categories as Menu Goceng,
Menu Praktis, and package meals. Menu Goceng category, which means are all the
menu items price at Rp5,000 each and not including tax. There are more than 10
menu items providing real value and the most “sell well” items are Mocha Float and
OR Burger Deluxe. To add variety to this Goceng menu category, menu selections
were changed due the changing preferential taste of customers.
On the other hand, Menu Praktis category includes menu items that are easy to
take away and can be consume easily, like Colonel Burger, Twister, Colonel
Yakiniku, etc.
Vision:
Maintain KFC’s market leadership and always be the No. 1 brand in the
QSR(Quick Service Restaurants) business in Indonesia by being the most modern
and favorite restaurant in terms of product, value, service, and assets.
Mission:
This research conducts in scope of KFC Mall Lippo Cikarang, the outlet in
Lippo Cikarang Mall was established on 10th June 1995. The KFC outlet in Lippo
CIkarang Mall has three main services of sales, first there is mother store or main
store in the first floor and in second floor KFC has a small kiosk to serve another
customer, and the last there are home delivery service. The manager of KFC outlet in
Lippo Cikarang Mall is Mrs. Maria Ulfah, with the assistant manager with Mr.
Wasyanto. There are also three shift leaders Mrs. Ameliana, Mr. Teodorus Seru, and
Mr. Ahmad Suseno. In this October, KFC outlet in Lippo Cikarang Mall has 42
people of employees including in mother store, kiosk and home delivery.
These graphics explain the total sales and total customers of KFC outlet in
Lippo Cikarang Mall period of January until October 2012.
Total Sales of Mother store, Kiosk and Home Delivery (IDR)
1,342,716,427
1,045,533,243
951,456,278 976,991,893 943,588,177
937,453,647
1,011,468,685 943,396,157
793,983,438 855,605,480
30000
23870
25000
20313
20000 19448
20444 20978 21089 20910
e 20866 19205
lp 18072
o 15000
e
P
10000
5000
Based from the explanation above, consuming fast food as the part of modern
lifestyle for many people who are busy with their activities and have no time to
prepare foods, so they just take fast food to eat and don’t realize how harmful fast
food for our body. As we know those varieties of fast food are well known as a junk
food. Junk food refers to fast foods which are easy to make and easy to consume, zero
in nutrition value, have only high fat to cause an illness (dietpolicy.com, 2012).
Salted snack foods, candy, gum, most sweet desserts, fried fast food and
carbonated beverages are some of the major junk foods. Fast food that we often to eat
like fried chicken, or another pre heated food, also another drinks with zero nutrition
but has high level of sugar or another chemical ingredient such as coloring and taste
maker can called as a junk food. Comparing the advantages of fast food is faster serve
time and cheap price of food than the disadvantages is more dangerous and harmful
for our body. The problem occurs when consuming fast food is health desease and
monetary problem for several people.
It is become the fact when consuming fast food, it will increase the illness or
diseases risk caused by fast food. The most common disease or serious health problem
are overweight or obesity, diabetic and high cholesterol level to have heart and liver
illness (WHO.int, 2012). Overweight or obesity are both labels for ranges of weight
that are greater than what is generally considered healthy for a given height.
“Overweight and obesity are the fifth leading risk for global deaths. At least
2.8 million adults die each year as a result of being overweight or obese. In addition,
44% of the diabetes burden, 23% of the ischemic heart disease burden and between
7% and 41% of certain cancer burdens are attributable to overweight and obesity”.
Overweight also closely related with high level of fat or cholesterol then it can cause
the possibility of coronary heart disease because the accumulation of plaque of
cholesterol or fat in blood vessel.
Diabetic caused by consuming fast food with high level of sugar (WHO.int,
2012). When consuming fast food usually people have their dessert with another
sweet food or drinks. This sweet food or drinks have high sugar level that potential
causing diabetic disease. This high level of sugar also affects to the obesity disease.
Diabetes increases the risk of heart disease and stroke. 50% of people with diabetes
die of cardiovascular disease.
The dangerous health risk caused by consuming fast food, there are still many
people like to consume it and makes it to become as part of their modern style. People
for sure know the consequence of consuming junk food, but they do not pay attention
to that harmful risk.
When they purchase or buy the product, several factors affected the consumer
behavior; there are cultural factor, social factor, personal factor, and psychological
factor. In this research, researcher takes the personal factor with age and lifecycle,
occupation, lifestyle, personality as the factors. The problem is to find the dominant
factor based on the personal factor that motivates people to consume American fast
food Kentucky Fried Chicken and from the personal factors, researchers want to find
any correlation between the factors and consumer decision to consume fast food.
a. Theoritical Significance
For develop the science study, especially for the economics field study,
this research is conduct. In addition, the researcher hopes this research can
give the contribution and can be used as the reference for the consumer
behavior study and the development of fast food business, so that the fast
food business investors can know more about consumer behavior
especially for the personal factor.
b. Practical Significance
For PT. Fast Food Indonesia Tbk., as the holder of KFC franchising in
Indonesia
To contribute the additional information about the consumber behavior
especially on the personal factor that motivate people to comsume this
American fast food. Based on the result of this research, they can make
new program or another strategies in market their products so the
consumer will purchase or consume more.
c. Academic Significance
Cultural
- Culture
- Sub Culture
- Social Class
Social
- Reference groups
- Family
- Roles and status
Personal
Psychological
- Motivation
- Perception
- Learning
- Belief and attitudes
Based on the aim of the research is that the researcher wants to know, what is
the dominant factor from the personal factor on consumer behavior, that motivate
people to consume American fast food Kentucky Fried Chicken KFC. The researcher
choose KFC, because it is the one of many culinary business industry that serve
American type fast food specially for fried chicken also, the modern lifestyle
nowadays, take people to consume fast food than cooking for their food. This research
is conduct as a case study for KFC outlet in Lippo Cikarang Mall. The researcher
chooses outlets in Cikarang, is for the affordable place to take the research and this
outlet have many customer that consist of young, adults, and old ages people.
Consumer behavior affected from several factors; social, cultural, personal, and
psychological factor, the researcher limited the scope of the research is just on the
personal factor.
There are many factors from characteristics of consumer that affect person to
consume or decide purchasing goods, the researcher chooses personal factor in
consumer behavior that motivate people to consume the American fast food because
the factors in personal such as age, occupation, economic situation, lifestyle and
personalities are the most interesting factor to be researched. Age are the factor that
influenced person to buy some products, because the maturity level in thinking
influenced person to purchase and consume the products, people also nowadays think
how to adjust what kind of goods that they purchase and consume based on their
occupation and economic situation. To consume or purchase the non-cheap goods,
they must think about their economic situation in condition of manage their outcome
to be lower than their income. Lifestyle and personalities also influenced how they
lives in this modern era, so it will affect what products or brands that they purchase.
Null Hypothesis (Ho3): Economic situation factor has no influence toward to people
purchase decision in purchasing and consuming fast food.
Alternate Hypothesis (Ha3): Economic situation factor has influence toward to people
purchase decision in purchasing and consuming fast food.
Null Hypothesis (Ho4): Lifestyle factor has no influence toward to people purchase
decision in purchasing and consuming fast food.
Alternate Hypothesis (Ha4): Lifestyle factor has influence toward to people purchase
decision in purchasing and consuming fast food.
Null Hypothesis (Ho6): All Personal factors in consumer behavior have no influence
toward to people purchase decision in purchasing and consuming fast food.
Alternate Hypothesis (Ha6): All Personal factors in consumer behavior have influence
toward to people purchase decision in purchasing and consuming fast food.
1.10 Definition of Term
Fast Food: Type of food that can be served quickly. Usually as a pre-cooked food
or freeze food. this food was designed for ready availability, use, or
consumption and with little consideration given to quality. There are so
many types of fast food for example American fast food such as fried
chicken, hamburgers and pizza. This fast food is available in outlets or
fast food restaurants.
Junk Food: Also known as fast food, fast food is junk food. it can be called as junk
food because the ingredients or the food nutrition in the fast food has
very low level of nutrition. Generally, Junk food has high in calories
level but low in nutritional content or value.
Franchise: Is model of business that giving a license for a branch holder. People
can open their business under another companies name or brands to
sell their products, there was a fee to buy the franchising license.
Diabetic A disease that can be caused by consuming fast food, another side
dishes or beverages that contains high level of sugar. Majority people
get diabetic types – 2, it caused by negative or poor lifestyle that
people have.
1.11 Chapter Outline
Chapter I Introduction
This consumer behavior from the definitions above, can be explained also as
study for a process of how consumer or people have their decision to select, purchase,
or consuming goods or services based on their needs and get the satisfaction from the
purchasing decision. According to Peter, J. Paul 2005; consumer behaviors involves
the thoughs and feelings people experience and actions they performed in
consumption processes, it also includes all the things in the environment that
influences thouthgt, feelings and actions”
Not all people will buy the same products; they have their own thinking
before deciding to purchasing goods or services. Consumer behavior refers to the
selection, purchase and consumption of goods and services for the satisfaction of their
wants. There are different processes involved in the consumer behavior. Initially the
consumer tries to find what commodities they would like to consume, then they
selected any goods or services that they think is the best. After selecting the products,
the consumer makes an estimate of the available money that they can spend.
Lastly, the consumer analyzes the prevailing prices of commodities and takes
the decision about the goods that they will purchase. The all consumers combine into
consumer market, the definition of consumer market according principles of
marketing a global perspective book is “all the individuals and households who buy or
acquire goods and services for personal consumptions.”
Consumer behavior deals with why people want to buy and why people do not
want to buy the products. Consumer purchases are influenced by the characteristic of
the consumer behavior such as cultural factor, social factor, personal factor, and
psychological factor.
a. Cultural factor
b. Social Factor
c. Personal Factor
d. Psychological Factor
Characteristics of consumer behavior
Purchase Decision
Cultural factors have strong influence to consumer behavior. According to Kotler and
Armstrong, 2008, there are three factors inside cultural factors; culture, subculture,
and social class.
a. Culture
c. Social Class
Every society has a social class structure. Social classes are society’s relatively
permanent and ordered divisions in a society whose members share similar
values, interests, and behaviors. Social class not only determined from single
factor such as income, but also measured combination of occupation, income,
education, wealth, and other variables.
a. Reference Group
Grioups that have direct influence and to which a person belongs are called
membership group, membership group serve as direct or indirect points of comparison
or reference in forming a person attitudes and behavior. When a person decides to buy
a product, reference of groups gives recommendation and influence that person mind
to buy or do not buy the products, so it will affect the consumer behavior.
b. Family
Family members can strongly influence buyer behavior. The family is the
most important consumer buying organization in society. The members of the family
can give influence when the person in the family wants to purchase some products or
services.
c. Roles and status
People usually choose the products appropriate to their roles and status. For example,
person in the family is a father, and in the organization is a vice president, then in
company he will buy clothes that reflects his role and status in the organization as the
vice president.
a. Motivation
The level of motivation also affects the buying behavior of customers. Every
person has different needs such as physiological needs, biological needs, social needs
etc. Therefore, a need becomes a motive when it is more pressing to direct the person
to seek satisfaction. Motive is a need that is sufficiently pressing to direct the person
to seek satisfaction of the need.
Another theory for human need, by Maslow from the book “essential
management” by Harold Koontz & Heinz Weihrich. (2006). Abraham Maslow
explained the hierarchy of needs why people driven by particular of needs at
particular times. From the most pressing at the bottom to the last pressing at the top.
c. Learning
Customer possesses specific belief and attitude towards various products. Beliefs and
attitudes make up brand image and affect consumer buying behavior. Belief is a
descriptive thought a person has about something, may be based on the
knowledge,opinion, or faith and may or may not carry an emotional charge. Attitudes
describes a person relatively consistent evaluations, feelings, and tendencies toward
object or idea.
People change the goods and services that they buy over the lifetimes. Taste in food,
clothes, furniture, and recreation are often age related. There will be different from
young age person taste to old age person taste, this different based on the age. Life
cycle stage for example from the single, married, have a family, unmarried, or another
cycle stage will affect the consumer behavior.
There are five segments of life age;the youth segment includes customer younger than
18. Getting started consists customer aged 18 to 35, who are going through first
experience in their lifes for example graduated, first job, first marriage. Builders
customer aged 35 to 50 are in the peak of earnings years. Accumulators aged 50 to 60
worry about saving for retirement and wisely investing. The last is preservers,
customer aged above 60 want to maximize their retirement income to maintain a
desired style.
b. Occupation
A person occupation affects the good or services that people bought and the
occupation of a person has significant impact on his buying behavior. For example the
white collar who works in a company as the manager, they will buy clothes that suit
for their occupation, not the informal but formal clothes and another example a
marketing manager of an organization will try to purchase business suits, whereas a
low level worker in the same organization will purchase rugged work clothes.
c. Economic Condition
Consumer economic situation has great influence on his buying behavior. If the
income and savings of a customer is high then he will purchase products that are more
expensive. On the other hand, a person with low income and savings will purchase
inexpensive products. Marketers of income sensitive goods watch trends in personal
income, savings, and interest rates. The economic condition of personal and the
current economic issue will affect customer’s decision before buying goods and
services. The personal economic condition of the cardholders cover; spendable
income, savings and assets, debts, borrowing power, and also attitudes toward
spending and saving.
d. Lifestyle
Each person’s distinct personality influences his or her buying behavior. Personality
refers to the unique psychological characteristics that lead to relatively consistent and
lasting response to one’s own environment. Personality changes from person to
person, time to time and place to place. Therefore it can greatly influence the buying
behavior of customers. Actually, Personality is not what one wears; rather it is the
totality of behavior of a man in different circumstances. It has different characteristics
such as: dominance, aggressiveness, self-confidence etc which can be useful to
determine the consumer behavior for particular product or service. Many marketers
use a concept related ro personality, a person self-concept also called as self image.
The basic self concept premise is that people possessions contribute to and reflect
their identities.
Need Recognition
Information Search
Evaluation of alternatives
Purchase decision
Postpurchase behavior
1. Need recognition
In this first step, person or consumer realize and discover the needed. The
buying process starts with need recognition in other word, buyer recognizers a
problem or need. the need can be started by internal stimuli when one of the person’s
normal needs for example hunger, thirst to a level high enough to become drive and
for the external stimuli for example, if one of the person thinking about buying car
after they discussed with another people.
2. Information search
3. Evaluation of Alternatives
4. Purchase Decision
After the evaluation, consumer ranks brands and forms purchase intention. Consumer
may form an intention to buy the most preferred brand or the buyer’s decision about
which brand to purchase. In purchase decision, there are two factors between purchase
intention and purchase decision. First is an attitude of others, other people that
important to the customer could change the decision of purchasing one product. the
second factor is an unexpected situational factors, the consumer may form a purchase
intention based on expected income, expected prize, and product benefits or an
unexpected events may change the purchase decision.
The stage of the buyer decision process in which the consumers takes further
action after purchase, based on the satisfaction or dissatisfaction of the products that
they purchase. The consumer can be categorized to satisfied or dissatisfied after a
purchasing from the relationship between the consumers expectation and products
perceived performance. If the product falls from customer’s expectation, it will make
the customer disappointed. If it meets expectation then the customer is satisfied, if it
exceeds expectation then the consumer is delighted.
CHAPTER III
RESEARCH METHODOLOGY
Statement of Problem
Literature Review
Survey
Pre-Questionnaire
No
Validity and Reliability Test
Yes
Final Questionnaire
Conclusion
The research was conducted in Lippo Cikarang Mall, the respondents are
people who are purchasing and consuming American fast food. In this research, the
researcher takes a study case or the limitation of the research in Kentucky Fried
Chicken, the fast food or quick service restaurants outlet in Lippo Cikarang Mall.
First, the preliminary research or to gathering data for pre-questionnaire was conduct
at November 2012, and using the questionnaire methods. After the researcher finishes
the pre-test questionnaire and testing a validity and reliability test, the researcher
conducted the final Questionnaire in December 2012 by using the same method of
Questionnaire.
In this research, the researcher collected the data from the surveys to the
manager of the outlet, literature review, internet research, and questionnaires as the
primary data. To analyze the collected data, researcher used SPSS program version
16.0, and Microsoft Excel program.
3.4.1 Survey
In this research, before doing the pre-questionnaire test, the researcher seeks
information, problems, and the phenomena of any issue that related to the researcher
major, management, concentration in International Business. Researcher takes this
problem of analysis of consumer behavior especially in personal factor that influence
people toward purchase decision or consuming the American fast food, and in this
case, the researcher take a case study in Lippo Cikarang Mall. As mentioned above,
the researcher takes target of respondents for the survey is people who are purchase or
consuming American fast food.
3.4.2 Questionnaire
The researcher to gathering the primary data uses questionnaire, then the raw
data from the questionnaire need to be processed to become the result. The questions
or statements in the researcher questionnaire represent of every variables that
researchers used in this research. Every variable has more than one statement, and it
will be tested with the respondents. The questionnaire was invented by Sir Francis
Galton.
Questionnaire in this research is conducted to know what are the most factor
that affect people toward purchase decision of purchasing or consuming the American
fast food. first, for the pre-testing the questionnaire, researcher has 28 questions or
statements that represent of five X (independent) variables and one Y(dependent)
variable. In the pre-questionnaire testing, researcher distributes the questionnaire for
20 people. After processing the pre-test questionnaire, and doing a validity and
reliability test, researcher adjust the statements into 25 statements. The adjustment
needed because only the valid and reliable statements can be used for final
questionnaire. Manual questionnaire used by the researcher in this research by
distribute to the people in the research place, then the data need to be coded manually
into the Ms. Excel before processing with SPSS program.
Manifest
Factors Variables Measurements Scale
Variables
For analyzing the data, the researcher used SPSS program and Microsoft
Excel. The SPSS software version 16.0 used to facilitate researcher in processing the
data from the questionnaire. Ms. Excel 2007 versions also used by the researcher for
coding the Likert Scale data from the questionnaire then continue processing with
SPSS.
To get the primary data in this research, the researcher doing a survey by
questionnaire. Determination of sample in the survey is very important because it will
affect the level of accuracy of the data and the research. The researcher using non-
probability sampling technique, non probability sampling is a method where some
elements of the population have no chance of selection and the researcher create big
sample size to make more possibility if there is representing all the different
characteristics of the respondents. For the sampling method, the researcher use
purposive sampling, purposive sampling also known as judgmental sampling, where
the researcher choose or decide the sample from population that appropriate for
conducting the research.
Researcher decided to use a method to determine the minimum sample for this
research. The method is called Slovin Method. Slovin's formula allows a researcher to
sample the population with a desired degree of accuracy and also it gives the
researcher an idea of how large his sample size needs to be to ensure a reasonable
accuracy of results. The formula of Slovin Method is shown below:
n=
n = Number of Samples
N = Number of Population
e = Error Tolerance
In this case, the population of the people who are buying or eating in the KFC
outlet in Lippo Cikarang Mall are around 120 people in a day and the error tolerance
is 5%, the number of sample is:
n=
n = 92.3
n = 93
From the calculation of the formula above, the researcher sample, consist of
93 respondents for this research.
Before the researcher starts the final questionnaire for the research, there is a
step known as pre-test questionnaire. In the pre-test questionnaire the researcher takes
a samples in total of 20 people, to test the questionnaire before distribute to the final
samples in total of 71 respondents. After collecting the pre-test questionnaire result of
20 people, the researcher take a pre test statistics such as validity and reliability test
by using the SPSS Ver. 16.0 program.
In the pre-test questionnaire, the researcher can asses more about the
questionnaire, the respondent understanding of the question in questionnaires, clarity
about the statement in questionnaire, also in the processing of validity and reliability
test, the researcher can improve the validity and reliability of every statement in the
questionnaire.
r=
In this research, researcher use SPSS version 16.0 to do validity testing, the result
of the validity test comes from comparison between “r” computation and “r” table.
“r” computation result comes from the SPSS calculation and “r” table comes from
“r” value of Pearson product moment which using 0.05 confidence level, and 20
respondents with the degree of freedom of 0.444 value.
Manifest r r
Factors Remarks
Variables Computation Table
X1.1 0.613632 0.444 Valid
Age & X1.2 0.744364 0.444 Valid
Life X1.3 0.83277 0.444 Valid
Cycle X1.4 0.84209 0.444 Valid
X2.1 0.673167 0.444 Valid
X2.2 0.80974 0.444 Valid
Occupa-
X2.3 0.647178 0.444 Valid
tion
X2.4 0.68674 0.444 Valid
X2.5 0.710355 0.444 Valid
X3.1 0.909161 0.444 Valid
Economic X3.2 0.580665 0.444 Valid
Situation X3.3 0.277165 0.444 Invalid
X3.4 0.729358 0.444 Valid
X4.1 0.833908 0.444 Valid
X4.2 0.909161 0.444 Valid
Life style X4.3 0.738782 0.444 Valid
X4.4 0.739648 0.444 Valid
X4.5 0.071264 0.444 Invalid
X5.1 0.703796 0.444 Valid
Persona-
X5.2 0.565148 0.444 Valid
lity &
X5.3 0.603821 0.444 Valid
Self
X5.4 0.658435 0.444 Valid
Concept
X5.5 0.411876 0.444 Invalid
Y1.1 0.671015 0.444 Valid
Y1.2 0.68893 0.444 Valid
Purchase
Y1.3 0.636391 0.444 Valid
Decision
Y1.4 0.811333 0.444 Valid
Y1.5 0.860608 0.444 Valid
Source: SPPS Ver. 16.0 and Construct by Researcher
Table 3.4 Result of Validity Test
Manifest r r
Factors Remarks
Variables Computation Table
α=
Where,
α = Instrument reliability’s coefficient
r = mean correlation coefficient between variables
k = number of questions
α > .9 Excellent
α> .8 Good
α > .7 Acceptable
α > .6 Questionable
α > .5 Poor
α < .5 Unacceptable
Reliability Statistics
Cronbach’s
Alpha N of Items
.967 25
This is the result of the SPSS software in the reliability test. The researcher
gets the cronbach’s alpha value for 0.967 for 25 statements after eliminating the
invalid statements. Before eliminating the invalid statements, researcher gets
Cronbach’s Alpha value for 0.961 from 28 statements.
The researcher concludes that the questionnaires result from validity and
reliability test is valid and reliable for a research study.
3.6.3 Mean score (MS) & overall mean score (OMS) Calculation
This analysis should be done in order to get the description about response
from respondents toward this problem where this analysis does the calculation per
variable or indicator (Sudijono, 2006, p.84). Calculation in this analysis based on the
formula below:
Where,
Xi = Score
= Frequency
After finished with the data per indicator, next step is calculating the overall
mean score toward variables in the research. This calculation will be done based on
the formula below (Sudijono, 2006, p.48):
Where:
= Overall average
n = Amount of respondents
After finished with OMS and MS, next step is classifying the data into class
interval where this process will give description about respondent opinion toward the
variables. This process will be done based on the formula below:
i=
Where:
i = Class interval
From the formula above, scale of interval class for this research can be
conclude as following below:
= 0.8
From the scale of interval class, interval class can be divided into:
b. Multicollinearity
c. Autocorrelation
d. Heteroscedasticity
This test become is important since it has purpose to analyze the relationship
between independent variable and dependent variable which is become the main
problem in this research. According to Wijaya, 2011, p.91 the formula for processing
this test as following below:
Where:
Y= dependent variable purchasing decision
a = Constanta
X1 = independent variable age and life cycle
X2 = independent variable occupation
X3 = independent variable economic situation
X4 = independent variable lifestyle
X5 = independent variable personality and self concept
b1 = age and life cycle regression coefficient
b2 = occupation regression coefficient
b3 = economic situation regression coefficient
b4 = lifestyle regression coefficient
b5 = personality and self concept regression coefficient
e = random error
3.6.7 Hypothesis Test
Hypothesis test used in order to know whether the total of sample in the
research has already strong enough to describe the population or not. Requirement
that used for this test is p value (sig) < α , since the researcher use α level in this
research is 5% so α = 0,05. This requirement use to reject H0 and accept H1
F Test
The aim of this test is to know whether all of independent variables (X)
simultaneously give significant effect to dependent variable (Y) or not. The criteria
that used to reject H0 and accept H1 is F computation > F table according to Sunyoto,
D (2011) and the formula to know value of F table is
Where:
V1 = df numerator = amount of variables (k) – 1
Where:
Fo = Value of F computation
b = Regression coefficients
X = Independent variable
The aim of this test is to know whether each of independent variable (X) has
significant effect to dependent variable (Y) or not. The following below is the criteria
which used for this test:
For determining the value of t manually, it can use the formula as following
below:
Where:
= Value of t computation
= Regression coefficients
For 2 tailed test, value of α also should be divided into 2. To determine the
value of t table, the formula is t α/2 (n-k). For determining the decision for hypothesis
on this test can use the value of significance on coefficients table with the criteria:
The scale of r value is between 0 \< r >/ 1, where : r = 1 , it means that the influence
of dependent and independent variable are positive perfectly (if the r value is getting
closer to 1, the effect is getting stronger and more positive). r = 0, it means that there
is no correlation between dependent and independent variable.
R2 in the next column r is to know how much of dependent variable (Y) can be
explained by the independent variable (X). the rest of R square value is explaining for
another factor.
CHAPTER IV
ANALYSIS OF DATA AND INTERPETATION OF
RESULT
In collecting the data for the research, the researcher shares 25 valid
statements to people in the KFC outlet in KFC Lippo Cikarang Mall by distributing
questionnaire, after get permission from the manager of the outlet for conducting
research in the fast food outlet. The researcher used offline system questionnaire,
means the researcher went to the outlet for distribute the questionnaire directly to the
people who are purchase or consuming the fast food.
The figure below explain the data based on the primary data collected from the
questionnaire, the characteristic of respondent for gender for this research are 34 male
respondents or 37% and 59 female respondents or 63% of 93 people that participate in
this research who are purchasing or consuming fast food in KFC outlet at Lippo
Cikarang Mall. The respondent majority is female. They are worker, who had lunck
break, work in the Lippo Cikarang area, or mothers who take their children for meals.
Male Female
37%
63%
The figure below explains for the characteristic of respondent based on their
age, the researcher classified the age into three groups. First, there are total of 29
respondents or 31% that have age ranged from 17 until 25 years old. Second, there are
total of 41 respondents or 44% that have age ranged from 26 until 35 years old. And
the last, there are 23 respondents or 25% have their age above than 35 years old. Since
the KFC fast food restaurant can consumed by all age people, so there are many
people that have variety age have their meal there. Majority respondents are employee
who had lunch break in KFC outlet.
25%
31%
44%
Figure 4.2 Age Distribution Chart
The figure below explains the education background of respondents in the research,
there are 4 respondents or 4% that have their education background for elementary
school until senior high school. Then, there are 33 respondents or 36% have the
education for diploma degree. Last, 56 respondents or 60% have their education for
university degree.
36%
60%
d. Occupation Background
12%
7% 28%
53%
Figure 4.4 Occupation Background Distribution Chart
e. Monthly Income
49%
36%
This figure explained the data collected from the questionnaire. For the
monthly income, fewer than 5 million Rupiah per month there are 46 respondents or
49%. 33 respondents or 36% have their income between 5 until 10 million Rupiah per
month. 10 respondents or 11% have income between 11 until 15 million Rupiah. 2
respondents or 2% have their income in range 16 until 20 million Rupiah per month,
and last there are 2 respondents or 2% that have their income more than 20 million
Rupiah per month. The respondents purchase decision in purchasing their meal at
KFC, indicates the economic condition for all respondents are good.
4%
96%
This is the result of mean score (MS) and overall means score (OMS) analysis
through 93 respondents that participate in this research. This test purpose is to know
the response from the respondents for the agreement level to the factor, by analyzing
statements or indicators from every variable in the questionnaire. There are five
interval class that explains the response from respondents to the statements or
indicators, there are; 4.21 – 5.00 is strongly agree, 3.41 – 4.20 is agree, 2.61 – 3.40 is
average, 1.81 – 2.60 is disagree and 1.00 – 1.80 is strongly disagree.
Table 4.1 Mean Score and Overall Mean score for Age & Life Cycle
Manifest Mean
Factors Variables Interval Result
Variables Score
Menu of American fast
X1.1 food is match with my 3.77 3.41 – 4.20 Agree
taste.
I often invite my family
X1.2 members, to have meal 3.45 3.41 – 4.20 Agree
Age &
here.
Life This fast food restaurant is
X1.3 great choice when I had 3.83 3.41 – 4.20 Agree
Cycle
little time to have meal.
I feel comfort to have meal
X1.4 here, in this fast food 3.74 3.41 – 4.20 Agree
restaurant.
Overall Mean Score 3.70 3.41 – 4.20 Agree
Source: Primary data, Construct by Researcher
From the result MS and OMS table of age and lifecycle, we can see the 93
respondents are agree that age & lifecycle are affecting their purchasing decision in
purchasing or consuming American fast food KFC in Lippo Cikarang Mall. The
overall mean score value is 3.70 indicate that respondents are agree with the
indicators or statements.
Table 4.2 Mean Score and Overall Mean score for Occupation
Manifest Mean
Factors Variables Interval Result
Variables Score
I often to eat here while
X2.1 having lunch break or free 3.3 2.61 – 3.40 Average
time at office
I often eat here and hang in
X2.2 this fast food restaurant 3.28 2.61 – 3.40 Average
with my business friend.
This fast food restaurant
X2.3 outlet is near with my work 3.31 2.61 – 3.40 Average
Occupa-
office.
tion I often meet with my
X2.4 business clients or clients 2.75 2.61 – 3.40 Average
of my work here.
In my opinion, this
X2.5 restaurant can be a place
3.27 2.61 – 3.40 Average
to meet with my client
business.
Overall Mean Score 3.18 2.61 – 3.40 Average
Source: Primary data, construct by Researcher
From the table above, the respondent’s response for occupation factor that
affecting their purchase decision in purchasing the fast food are average. The overall
mean score is 3.18 which indicates the average. The average means not all
respondents are agree or disagree with the statements or in neutral condition.
Table 4.3 Mean Score and Overall Mean score for Economic Situation
Manifest Mean
Factors Variables Interval Result
Variables Score
The price of menu that this
X3.1 Fast food restaurant 3.77 3.41 – 4.20 Agree
offered is quite affordable.
I often to eat this American
X3.2 fast food like this and it not
Economic 3.54 3.41 – 4.20 Agree
affect my financial
Situation condition.
Cost incurred to eat here in
X3.4 comparison to cook my 3.33 2.61 – 3.40 Average
own food is almost equal.
Based on the table above, the respondents response is agree with the economic
situation can affect to their purchase decision to purchasing fastfood. The overall
mean score is 3.54 for this economic situation factor means respondents agree to this
factor.
Table 4.4 Mean Score and Overall Mean score for Lifestyle
Manifest Mean
Factors Variables Interval Result
Variables Score
I like to eat here and
X4.1 hanging out with my 3.82 3.41 – 4.20 Agree
friends here.
X4.2 I like to eat here with my
3.46 3.41 – 4.20 Agree
family.
Lifestyle
I prefer to have meal
X4.3 outside than cooking at 2.98 2.61 – 3.40 Average
home.
X4.4 Culinary in American fast
food is one of my hobbies. 3.13 2.61 – 3.40 Average
Overall Mean Score 3.34 2.61 – 3.40 Average
Source: Primary data, construct by Researcher
The respondents response about lifestyle will affect their purchase\ decision is
average. This means respondents in neutral condition, agree and disagree for this
statements or factor. The table above shows the total of overall means score is 3.34,
which means average.
Table 4.5 Mean Score and Overall Mean score for Personality & Self Concept
Manifest Mean
Factors Variables Interval Result
Variables Score
I like the menu, taste, and
X5.1 variety of food in this 3.98 3.41 – 4.20 Agree
American fast food.
Persona- X5.2 This American fast food has
3.66 3.41 – 4.20 Agree
many food menus to offer.
lity & In my opinion, KFC is still
X5.3 number one for taste and
Self 3.89 3.41 – 4.20 Agree
quality of food compare to
Concept other brands.
X5.4 Service given in this outlet
3.94 3.41 – 4.20 Agree
is very good.
Overall Mean Score 3.86 3.41 – 4.20 Agree
Source: Primary data, construct by Researcher
For personality and self-concept factor, based on the table above, respondents
are agree with this factor that personality and self concept will affect their purchase
decision in purchasing or consuming fast food. The overall mean score for this factor
is 3.86, which means the respondents are agree with the factor or statements.
Table 4.6 Mean Score and Overall Mean score for Purchase Decision
Manifest Mean
Factors Variables Interval Result
Variables Score
I am purchasing this fast
food menu because of
Y1.1 great taste and various 4.16 3.41 – 4.20 Agree
Purchase menus that match with my
style.
Decision
I am purchasing this fast
Y1.2 food menu because of this
3.91 3.41 – 4.20 Agree
outlet serve a comfort
place to have meal and
hanging with my business
friends.
I am purchasing this fast
Y1.3 food menu because of the 3.78 3.41 – 4.20 Agree
affordable price offered.
I am purchasing this fast
food menu because it can
Y1.4 full fill the needs of people
3.92 3.41 – 4.20 Agree
lifestyle (meal with family,
hanging with friends or
family).
I am purchasing this fast
food menu because this
Y1.5 outlet has various menu, 4.11 3.41 – 4.20 Agree
comfort place, great
facilities and good service.
Overall Mean Score 3.97 3.41 – 4.20 Agree
Source: Primary data, construct by Researcher
For purchasing decision, the respondents are agree with the purchase decision
in consuming fast food. The total value of overall mean score based on the table
above is 3.97, which indicates the respondents are agree with the factor and
statements or indicators.
Descriptive Statistics
Std.
N Range Minimum Maximum Mean Deviation Variance
Valid N
93
(listwise)
Source: SPSS Program Ver.16.0
The table above is the result of descriptive statistics from the questionnaire
data, processed by SPSS program. N means total of respondents, the researcher take
93 sample of respondents. For y1, it has 7 for range, 16 for minimum, 23 for
maximum, 19.90 for mean statistic, .167 for mean std. error, 1.609 for standard
deviation and 2.588 for variance statistic. For X1, it has10 for range, 8 for minimum,
18 for maximum, 14.80 for mean statistic, .216 for mean std. error, 2.072 for standard
deviation and 4.295 for variance statistic. For X2, it has 19 for range, 6 for minimum,
25 for maximum, 15.91 for mean statistic, .396 for mean std. error, 3.821 for standard
deviation and 14.601 for variance statistic. For X3, it has 10 for range, 5 for
minimum, 15 for maximum, 10.75 for mean statistic, .228 for mean std. error, 2.200
for standard deviation and 4.840 for variance statistic. For X4, it has 13 for range, 7
for minimum, 20 for maximum, 13.39 for mean statistic, .247 for mean std. error,
2.387for standard deviation and 5.696 for variance statistic. For X5, it has 9 for range,
10 for minimum, 19 for maximum, 15.25 for mean statistic, .179 for mean std. error,
1.730 for standard deviation and 2.993 for variance statistic.
Collinearity Statistics
Tolerance VIF
.537 1.863
.572 1.748
.642 1.558
.688 1.453
.763 1.310
Durbin-Watson
1.425
positive autocorrelation occurs when the value of DW test result <-2 , autocorrelation
does not occur if the value of -2 <= DW test result <= +2, negative autocorrelation
occurs when the value of DW test result > +2. From the table above, the researcher
can concludes that autocorrelation is not happen, because the Durbin Watson test
result is 1.425
For normality test, the researcher use normal probability plot graphics and
histogram from the SPSS program. The aim of normality test is to know if the
distribution of the data is normal or not. According to Sunyoto, D. (2011), the pattern
of circle dot position must near of diagonal line in the box, and the distribution of the
data must not curved to the left or right. For the histogram, the good result must have
a good bell shape normal curve and the histogram have the highest bar. Here is the
result of normality test,
Figure 4.7 Normality Test Probability Plots Graphic
From the scatter plot result above, the researcher concludes heteroscedasticity
does not happen and data can be processed and analyzed.
The researcher used multiple regression test method to know the influence of
personal factor in characteristics of consumer behavior toward people purchase
decision in purchasing or consuming the American fast food, study case in KFC the
American fast food restaurant in Lippo Cikarang Mall. After distributing the
questionnaires consist of statements or indicator for every factors to the 93 repondents
that participate in this research, the researcher got result after processing the data by
SPSS program Ver.16.0 and the result are in the table below;
Table 4.10 Result of Multiple Regression Test (Coefficients)
a
Coefficients
Unstandardized Standardized
Coefficients Coefficients Correlations
Zero-
Model B Std. Error Beta t Sig. order Partial Part
1 (Consta
8.819 1.042 8.461 .000
nt)
a. Dependent Variable:
y1
Source: SPSS program, ver. 16
From the result of the table above, the researcher use standardized coefficients
beta for concluding the equation for multiple regression. According to Sunyoto D.
(2011), the “a” value or Constanta value is cannot be used in this research, because
the five independent factors are not having any unit to calculate people purchase
decision. From the standardized coefficients table above, the researcher concludes the
multiple regression equation is;
Y= 0.194X1+0.200X2+0.256X3+0.083X4+0.335X5
Where:
Y = Purchase Decision
X1 = Age and Lifecycle
X2 = Occupation
X3 = Economic situation
X4 = Lifestyle
X5 = Personality and Self Concept
T-Test
For the T test, researcher used T table from computation to be compare with
the T-table. T computation is value of “t” from the SPSS coefficients table. With the
93 respondents, the researcher use T value from T table with the respondents of 91
(93-2) and with the significance level 0.05, it is 1.98638. If T computation < t table,
H0 Accepted, Ha Rejected and if t computation > t table, H0 Rejected, Ha Accepted.
From the table of coefficient table above, the researcher can conclude;
a) From the coefficients table, column of T, the T value of first factor (X1) age
and life cycle, the T value (2.171) is bigger than T table (1.986). This means
Ha1 accepted and age and life cycle factor has influence toward people
purchase decision.
b) From the coefficients table, column of T, the T value of second factor (X2)
occupation, the T value (2.307) is bigger than T table (1.986). This means Ha2
accepted and occupation factor cycle has influence toward people purchase
decision.
c) From the coefficients table, column of T, the T value of third factor (X3)
economic situation, the T value (3.134) is bigger than T table (1.986). This
means Ha3 accepted and economic situation factor has influence toward
people purchase decision.
d) From the coefficients table, column of T, the T value of fourth factor (X4)
lifestyle, the T value (1.045) is smaller than T table (1.986). This means Ha4
rejected and Ho4 accepted, thus lifestyle factor has no influence toward people
purchase decision.
e) From the coefficients table, column of T, the T value of fifth factor (X5)
personality and self-concept, the T value (4.467) is bigger than T table (1.986).
This means Ha5 rejected and personality and self-concept factor has influence
toward people purchase decision.
F-Test
ANOVAb
Total 238.129 92
b. Dependent Variable: y1
The ANOVA table above explains about the result of ANOVA test or F test.
The main point of F test is to know the influence between Age & Life Cycle(X1),
Occupation(X2), Economic Situation(X3), Lifestyle and Personality(X4) & Self-
concept(X5) toward people or consumer purchase decision in purchasing or
consuming the American fast food. The result from the F test, ANOVA table is F
value get 29.152 with the significance level 0.000.
Because of the significance level is (0.000) lower than the alpha value in the
research (0.05) it means, the (Ha6) is accepted and (Ho6) rejected. F table value for
this research, with 93 respondents, total of 6 variables, and significance level 0.05, is
2.32, thus the F-test computation result is 29.152. The F computation value higher
than F table value, then researcher can concludes that Age & Life Cycle, Occupation,
Economic Situation, Lifestyle and Personality & Self concept significantly affect or
have the significant correlation toward people purchasing decision in purchasing or
consuming American fast food KFC
Table 4.12 Result of Multiple Regression Test (Model Summary)
Model Summaryb
Change Statistics
Std. Error
Mod R Adjusted of the R Square F Sig. F
el R Square R Square Estimate Change Change df1 df2 Change
a
1 .791 .626 .605 1.011 .626 29.152 5 87 .000
b. Dependent Variable: y1
Source: SPSS program, ver. 16
The Model Summary table above explains the R and R Square. First, the result
of R-value in the table above is 0.791 or 79.1%. In the other words, correlation
relationship between the five X factors (Age & Life Cycle, Occupation, Economic
Situation, Lifestyle and Personality & Self concept) toward people purchase decision
is 79.1%. Last, the result of R Square in the table is 0.626, this means 62.6% people
purchasing decision can be explained by five X factors (Age & Life Cycle,
Occupation, Economic Situation, Lifestyle and Personality & Self concept) above.
Moreover, the rest 37.4% (100% - 62.6%), people purchasing decision can be
explained by other factors.
In this part, the researcher will describe the result of this research about the
influence of Personal factor in characteristic of consumber behavior toward people
purchase decision in purchasing or consuming fast food KFC, study case in KFC
Lippo Cikarang Mall. Based on the ANOVA test or F-test table result, the
significance level is 0.000 lower than the alpha level 0.05 (5%), that means variable
of Age & Life Cycle(x1), Occupation(x2), Economic Situation(x3), Lifestyle and
Personality(x4) & Self-concept(X5) in this research affect or influence people
purchase decision.
a) Age and lifecycle (X1) toward Purchase decision (y)
From the result of multiple regression tests, the researcher can conclude; the
first factor, Age and life cycle stage (X1) has influence toward people purchase
decision. People purchase decision in purchasing goods or services are changeable
during their ages and lifetimes. From the questionnaire data, respondents are agree
with the menu of American fastfood that is match with their taste. The respondents
are also like to invite their family member to eat at American fast food KFC Lippo
Cikarang Mall. The short time break can be factor that people decide to have their
meal at this fast food restaurant and people are agreed to feel comfort to had meal in
the outlet.
Second factor, occupation (X2) also has influence toward people purchase
decision in this research. Occupation can determine how goods or services that people
purchase or buy. High position of a person, will make their decision for purchasing
the expensive, good, or match with their occupation. From the respondents answer,
they are all having average of opinion that occupation can affect their decision to eat
in the outlet, where average means people are agree and disagree or moderate to
assess the statements. Researcher can conclude their purchase in KFC affected by
their occupation for example the position of their jobs, outlet is near from their office,
or another factor such as follow their business mates to have meal there.
Third factor, economic situation (X3), affects the people purchase decision in
consuming fast food. The basic of people purchase ability is their ability to buy with
considering their income. Income level of a person will affect their savings and
consumption. Higher income of person will also increase the level of savings and
increase their consumption. Lower income of a person will decrease their savings and
decreasing their consumption. The indicators of economic situation can affect their
decision in purchasing fast food can be seen from the respondents opinion.
Respondents are agree that price of fast food menu is affordable, the purchasing of
American fast food menu will not affect their economic condition, and the cost
occurred when cooking at home than buying fast food is almost equal.
d) Lifestyle (X4) toward Purchase decision (y)
Lifestyle (X4) or the fourth factor in this research has less influence toward
their purchase decision in purchasing American fast food KFC. Lifestyle is a part of
people, how do they live in activities, interest and opinions (AIO). Activities
dimension for example, work, hobbies, shopping, sports, interest for example, food or
culinary, fashion, entertainment, family, and opinion for example social issue,
business, and products. The researcher concludes the respondent consists of cikarang
people do not have same lifestyle for people that live in another city such as Bekasi
and Jakarta. In fact, the lifestyle between people in Cikarang is different with people
in Jakarta, this lifestyle differences caused by several factors such as, social
environment, economic background and the personality of the people. The different
lifestyle in American fast food culinary interest create a different result, so from the
result data, the lifestyle factor has less or no influence toward people purchase
decision in purchasing American fast food KFC. The different lifestyle in American
fast food culinary interest create a different result, so from the result data, the lifestyle
factor has less or no influence toward people purchase decision in purchasing
American fast food KFC.
Last, Personality and Self-concept (X5) is the fifth factor in this research that
has influence to people purchase decision. From the data, the researcher can conclude
all respondents agree with their personal and their self-concept that influence their
purchase decision in purchasing fast food. People have different personalities and self
concept, but in this research, all of respondents have their same personality for having
their meal in American fast food KFC because of their personal reasons such as they
love to consume the American fast food especially KFC menu. Another reason for
personality and self concept is KFC restaurant has variety menu, delicious taste and
quality of food, service, etc better than another American fast food restaurant.
From the explanation above, the researcher concludes the people purchase
decision 62.6% affected by five factors above and for the individual factor. The most
dominant factor influence people purchase decision is personality and self-
concept factor(X5), it can be seen from T-test result, with the highest t computation
value (4.467) than another variables. According to Sunyoto, D. (2011), the dominant
factor can be seen from the highest result of t-test value. When consuming fast food or
often called as junk food, people must consider about the risk of health that caused by
consuming fast food. From this research, 96% of respondent knows about the health
risk but they ignores it and continue their purchasing because of the personality and
self-concept factor that most affect their purchase decision.
CHAPTER V
CONCLUSIONS AND RECOMMENDATIONS
5.1 Conclusion
Kentucky Fried Chicken is one of many quick service restaurants that sells
fast-American food menu in Indonesia, for Indonesian people KFC is still number one
to be chosen for several fast food restaurants, proof with the top brand survey in 2012.
Indonesian people love to consume this American fastfood menu. With the high risk
of health if consuming the fast food so much, mostly people are aware for the risk,
and still want consume it. There are many serious health illnesses caused by
consuming fast food. Why people want to consume it? What factors those motivate to
consume the fast food?
From the multiple regression analysis, researcher got the formula for this
research Purchasing Decision = 0.194X1+0.200X2+0.256X3+0.083X4+0.335X5. F test
result, with the F table (29.152) is higher than F computation (2.32) then all
independent factors has significant correlation toward dependent variable. T test
result, X1, X2, X3, X5 has significance correlation toward dependent variable(Y) and
X4 has not significance toward dependent variable (Y).
5.2 Recommendation
From the conclusion, the researcher has several recommendations for object
study in increasing people purchase decision in purchasing or consuming fast food
KFC;
b) For factor or variable that has not influence toward people purchase
decision (X4), KFC should care about the lifestyle factor of Cikarang people. If it
possible, than the company can take study about learning people lifestyle in
Cikarang for increasing company sales. People’s lifestyle is different from one
place to another place; the strategy must be different for facing the different
lifestyle. For example, Cikarang people would like to hangout and have meal with
their children, to attract more customers, KFC can improve the playground area
for the customer’s children, and then the children like to play there while having
their meals.
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