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ANALYSIS OF PERSONAL FACTOR THAT AFFECTING

PEOPLE IN PURCHASING AND CONSUMING


AMERICAN FRIED CHICKEN FAST FOOD
(CASE STUDY IN KENTUCKY FRIED CHICKEN
LIPPO CIKARANG MALL)

By
Hengky Susanto
014200900071

A thesis presented to the


Faculty of Economics President University
in partial fulfillment of requirements for
Bachelor Degree of Economics Major in Management

President Univeristy
Cikarang Baru – Bekasi
Indonesia

January 2013
THESIS ADVISER
RECOMMENDATION LETTER

This thesis entitled “Analysis of Personal Factor that Affecting


People in Purchasing and Consuming American Fried Chicken Fast
Food (Case Study in Kentucky Fried Chicken Lippo Cikarang
Mall)”, prepared and submitted by Hengky Susanto in partial fulfillment
of the requirements for the degree of Bachelor in the Faculty of Economy
has been reviewed and found to have satisfied the requirements for a
thesis fit to be examined. I therefore recommend this thesis for oral
defense.

Cikarang, Indonesia, January 23, 2013.

Acknowledged by, Recommended by,

Irfan Habsjah, MBA. CMA Purwanto, ST, MM


Head of Management Thesis Advisor
Study program
PANEL OF EXAMINERS
APPROVAL SHEET

The Panel of Examiners declared that the thesis entitled “Analysis


of Personal Factor that Affecting People in Purchasing and
Consuming American Fried Chicken Fast Food (Case Study in
Kentucky Fried Chicken Lippo Cikarang Mall)” that was submitted
by Hengky Susanto majoring in International Business from the Faculty
of Economic was assessed and approved to have passed the oral
examinations on Tuesday, February 12th 2013.

Ir. Yunita Ismail, M.Si


Chair – Panel of Examiners

Irfan Habsjah, MBA. CMA


Examiner II

Purwanto, ST, MM
Examiner III
DECLARATIONOF ORIGINALITY

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


that Affecting People in Purchasing and Consuming American Fried
Chicken Fast Food (Case Study in Kentucky Fried Chicken Lippo
Cikarang Mall)” is, to the best of my knowledge and belief, an original
piece of work that has not been submitted, either in whole or in part, to
another university to obtain a degree.

Cikarang, Indonesia, January 23, 2013

Hengky Susanto
ABSTRACT

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


consumer behavior that affecting people in purchase and consume KFC. This research
case study is in KFC outlet in Lippo Cikarang Mall. This research shows that
consuming fast food or as known as junk food has risk of health disease. There are
five variables or factors in this research to be analyzed, and the dominant factors are
perosnalitirs (X5) and the weakest is Lifestyle (X4). This research using quantitative
research method and its conducted based on consumer behavior theory, focusing on
personal factor in consumer behavior characteristics and purchase decision. The data
were obtained by doing observation and distributing questioner to 93 respondents. For
processing the data from questionnaire, the researcher using SPSS (Statistic Product
and Service Solution) software version 16.0 with several test; validity test, reliability
test, F test, T test, multiple regression analysis. From the SPSS program multiple
regression result, X5 or personalities and self concept is the dominant factor
influencing purchase decision and X4 is non dominant or has no influence toward
purchase decision. The coefficient determinant (R Square) on this test is 62.6% means
that independent variables can describe dependent variable about 62.6%. F-Test in
this research show that independent variables simultaneously give influence to
dependent variable with significance level 0,00 and F value 29,2. For T-test result,
shows that independent variables or factor X1 (0.33), X2 (0.23), X3 (0.002), X5
(0.000) has influence partially because of the significance value below 0.05. For X4
(0.299) with the significance value above than 0.05, means X4 has not significance
influence toward purchase decision and for dominant factor in this research that
affecting dependent variable Y is X5 (Personality and Self-concept factor).

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


and Self-concept, Purchase decision
ACKNOWLEDGEMENT

Thank you Lord! Thank you Jesus! Thank you for the guiding, blessing while
writing this thesis then I can finish writing this thesis. Without your great blessing, I
can’t finish this thesis Lord! This thesis is to fulfill the requirements for finishing
bachelor degree in economic faculty of President University. I also want to say thank
you very much for;

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


in writing this thesis. Thank you for your pray and bless papa, mama.
b) My best friends Bram, Eko, Martin, Anthony, Bernard, Adit, Willy, Andre,
Sucing, Najib, Koji, Pao, Irene, and the others, thank you for the support
and with our hard work in doing this thesis, we all can finish this thesis.
You guys are the best.
c) Mr. Purwanto, as my thesis advisor. Thank you, Sir, for your great and
wonderful guidance that you give to me during writing this research. thank
you for your advices and other supports.
d) Thank you very much for Mrs. Maria Ulfah, as the manager of KFC outlet
in Lippo Cikarang Mall. Thank you mam, for your guidance and
permission for conducting this research in your outlet.

I realized this research is still has lacking and not perfect, I openly accept for
every comments and suggestions for make this research better. Last, I hope this
research will give benefits for those who needs.

Bekasi, 23 January 2013

Hengky Susanto
TABLE OF CONTENTS

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


PANEL OF EXAMINERS APPROVAL SHEET...................................................iii
DECLARATION OF ORIGINALITY.........................................................................iv
ABSTRACT...........................................................................................................................v
ACKNOWLEDGEMENT.................................................................................................vi
TABLE OF CONTENT.....................................................................................................vii
LIST OF TABLES..............................................................................................................x
LIST OF FIGURES.........................................................................................................xi
I. INTRODUCTION
1.1. Background of the Study…………………………………………………………1
1.2. Company Profile…………………………………………..……….…….………6
1.2.1 Products……………………………………………………………………7
1.2.2 Vision and Mission…………………………………………………………8
1.2.3 KFC in Lippo Cikarang Mall……………………………………………….8
1.3. Problem Identified…………………………………………………………...…10
1.4. Statement of Problem……………..……………………………………………11
1.5. Research Objectives……………………………………………………………12
1.6. Significance of Study…………………………………………………………..12
1.7. Theorythical Framework……………………………………………………….14
1.8. Scope and Limitation…………………………………………………………...15
1.9. Assumption and Hypothesis…...……………………………………………….15
1.10. Definition of Term…………………………………………………………… 17
1.11. Chapter outline………………………………………………………………..18
II. LITERATURE REVIEW
2.1. Consumer behavior ……………………………………………………………….19
2.2. Characteristics of consumer behavior ……………………………………………... 20
2.2.1 Cultural factor …………………………………………………………….21
2.2.2 Social factor……………………………………………………………... 22
2.2.3 Psychological factor ……………………………………………………...23
2.2.4 Personal factor…………………………………………………………… 24
2.3. Types of buying decision behavior ………………………………………………...26
2.4. Buyer decision process …………………………………………………………….28
III. RESEARCH METHODOLOGY
3.1. Research methodology ……………………………………………………………..30
3.2. Research framework ……………………………………………………………….31
3.3. Research time and place …………………………………………………………...32
3.4. Research instrument ………………………………………………………………..32
3.4.1 Survey…………………………………………………………………… 32
3.4.2 Questionnaire …………………………………………………………….33
3.4.3 Data analysis ……………………………………………………………...36
3.5 Sampling design ……………………………………………………………………36
3.6 Statistical instruments ………………………………………………………………37
3.6.1 Validity …………………………………………………………………..38
3.6.2 Reliability ………………………………………………………………...40
3.6.3 Mean score and Overall mean score ……………………………………....42
3.6.4 Data classic assumption………………………………………………….. 44
3.6.5 Descriptive analysis……………………………………………………… 45
3.6.6 Multiple regression ……………………………………………………….45
3.6.7 Hyphothesis test ………………………………………………………….46
3.6.8 Coefficient Correlation (r) and Determination (r2)……………...………47
IV. ANALYSIS OF DATA AND INTERPRETATION OF RESULTS
4.1 Descriptive analysis ………………………………………………………………...49
4.1.1 Data Collection …………………………………………….……………..49
4.1.2 Charateristics of respondents ……………………………………………..49
4.1.3 Mean score and Overall means score analysis…………………………… 53
4.1.4 Statistical descriptive ……………………………………………………..57
4.1.5 Data classic assumption ………………………………………..…………58
4.2 Multiple Regression Analysis ………………………………………………………61
4.3 Interpretation of result 65
V. CONCLUSION AND RECOMMENDATION
5.1 Conclusion.........................................................................................................................69
5.2 Recommendation..............................................................................................................70
LIST OF REFERENCES …………………………………………………………….71
APPENDICES ………………………………………………………………………...73
LIST OF TABELS

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


Table 3.2 Pre-questionnaire …………………………………………………...…….35
Table 3.3 Result of validity and reliability test ……………………………………...39
Table 3.4 Valid statements…………………………………………………………..40
Table 3.5 Reliability test result …………………………………………………...…41
Table 3.6 Correlation coefficients ………………………………………………..…48
Table 4.1 Ms & Oms Age and Life cycle ………………………………...…………54
Table 4.2 Ms & Oms Occupation ………………………………………...…………54
Table 4.3 Ms & Oms Economic Condition ………………………………...……….55
Table 4.4 Ms & Oms Lifestyle ……………………………………………...………55
Table 4.5 Ms & Oms Personality and self concept ……………………………...….56
Table 4.6 Ms & Oms Purchase decision ………………………………………...….56
Table 4.7 Descriptive statistics ………………………………………………..……57
Table 4.8 Result of Colinearity test ……………………………………………..….59
Table 4.9 Result of DW test ……………………………………………………..…59
Table 4.10 Result of Multiple Regression test (Coefficients) …………………..….62
Table 4.11 Result of Multiple Regression test (ANOVA) ……………………..…..64
Table 4.10 Result of Multiple Regression test (Model Summary) ……………..…..65
LIST OF FIGURES

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


Figure 1.2 Total of KFC sales Indonesia …………………………………………….4
Figure 1.3 Top brands 2012 ………………………………………………………….5
Figure 1.4 Total sales of KFC outlet in Lippo Cikarang Mall ……………………….9
Figure 1.5 Total customers of KFC outlet in Lippo Cikarang Mall ………………….9
Figure 1.6 Theoretical framework …………………………………………………..14
Figure 2.1 Consumer behavior ……………………………………………………...21
Figure 2.2 Maslows hierarchy of needs ……………………………………………..23
Figure 2.3 Four types of buyer decision behavior …………………………………..26
Figure 2.4 Five steps of buyer decision process …………………………………….28
Figure 3.1 Research framework …………………………………………………….31
Figure 4.1 Gender Distribution chart ……………………………………………….49
Figure 4.2 Age Distribution chart …………………………………………………..50
Figure 4.3 Education background Distribution chart ……………………………….51
Figure 4.4 Occupation Distribution chart …………………………………………..52
Figure 4.5 Monthly income Distribution chart ……………………………………..52
Figure 4.6 Respondents awareness of fast food risk distribution chart ……………..53
Figure 4.7 Normality test P. Plot ……………………………………………………60
Figure 4.8 Histogram normality test ………………………………………………...60
Figure 4.9 Result of heteroscedasticity test …………………………………………61
CHAPTER I
INTRODUCTION

1.1 Background of Study

In this modern era, where the globalization in every sector of business and
modernization in every sector in our lives, make our lives become more complex than
before. In Indonesia the developing country where many foreign or local investor
invest their business to be run in our country, as the result we can see many foreign
companies that run their business in Indonesia. With the total population of two
hundred fifty nine million nine hundred forty thousand eight hundred fifty seven
(259.940.857) on last December 2010, Indonesia has a good potential in developing
business.

The good economic progress also encourage people to just not fulfill they
basic need or primary, but their need also for the secondary need like lifestyle, and the
worst is lifestyle can encourage people to become more consumptive. Lifestyle
according to Kotler, 2011 is person’s pattern of living. Lifestyle change people living
behavior. People eat out home, go to fast food restaurant in late night, take a chit-chat
with their mates late night in coffee café are the examples of lifestyle in nowadays.

Indonesia is a country with the big population, what is the most important of
people need? People needs a food as their basic need for Physiological (Mashlow
hierarchy of need, 2006), then food is become one of their primary needs. A
traditional list of immediate "basic needs" is food (including water), shelter, and
clothing. Thus, the culinary business is the appropriate business to be developed. In
fact, there are so many restaurants business with the local or foreign food.

As the globalization consequences, foreign investor or foreign business comes


to Indonesia. The investor can market their business with the franchising their
business so the business can be spread to every area or place. According to Mitchell,
2012,“Franchising is a business model in which many different owners share a single
brand name. A parent company allows entrepreneurs to use the company's strategies
and trademarks; in exchange, the franchisee pays an initial fee and royalties based on
revenues”. Nowadays franchise business is developing, we can see there are so many
same brands of business spread in many places. With the high need of money as the
capital, franchise takes less work to get started, because the franchiser provides
anything the franchisee needs (Nembhard, 2011).

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


including the cooking process to produced the primary needs of people, food. It can
make easier the processing the raw material or even to cook, for producing foods is no
longer time needed, no more workers required and more simple to cook. Nowadays
available also, there are freeze foods, or preheated foods which the easiest way to
consume, just heat the freeze foods.

Through the big population, developing of the culinary business with


franchising and advances if technologies, then exist the fast food restaurant business
with the franchising model. There are so many types of fast food in Indonesia, the
well-known fast food are American fast food restaurants, Japanese fast food
restaurants and Indonesian fast food restaurants. The American fast food restaurants
has many outlets, especially in the big city, it spreads in every mall or shopping
centre. “Fast food is the term given to food that can be prepared and served very
quickly, typically the term refers to food sold in a restaurant or store with preheated or
precooked ingredients, and served to the customer in a packaged form for take-
out/take-away: (Merriam–Webster dictionary).

The foreign fast food, with the adaption to Indonesian cultures, they provide
what Indonesian people like to eat, so they just not provide their original foods. We
can find many variety of fast food when we go to the mall in big cities then go to the
food court area; there are so many fast food restaurants with many people takes their
meal there. The short time for prepare the foods, easy to eat, good taste of the foods,
and affordable food price for specific foods, fast food becoming first choice for
people in big city who has limited time for lunch break and eats, since their time is for
working in all days. Teens, adults, child, or old people loves to eat this fast food,
sometimes they eat with the whole family in the restaurants, or have delivery services
to their home this kind of activities is part of modern lifestyle.
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.

Sales in Billion (in $ USD) 8,920


8,554
8,230
7,830
7,394

2007 2008 2009 2010 2011

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

Source: Yum! Brands 2011 Financial report

The graphic above explain the increasing of total KFC international sales, it
shows the total sales of KFC worldwide including KFC in Indonesia. The increasing
of total sales from 2007 until 2011 show us that fast food industry have a good
potential in year to year. In 2007, KFC international got $7,394 billion, in 2008 KFC
international got $7,840 billion, in 2009 KFC international got $8,230 billion, in 2010
KFC international got $8,554 billion, and in 2011 KFC got $8,920 billion for total
sales.

Seeing this big opportunities to develop the fast food restaurants, to fulfill
what the people in big cities need, then Kentucky Fried Chicken the American fast
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

2007 2008 2009 2010 2011

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

Source: PT. Fast Indonesia Tbk. Financial Report 2011

The graphic above explains the sales of KFC in Indonesia increasing from
2007 until 2011. KFC Indonesia has the total of 403 outlets and KFC gets 3.3
quintillion rupiah in 2011 increasing from 2010 just 2.9 quintillion rupiah
(Neraca.co.id, 2012). This increasing sale indicates that Indonesian people have great
interest in purchasing and consuming fast food.
From the Top Brands survey in Indonesia for 2012, Kentucky Fried chicken is
still becomes the top brand of fast food restaurants with the indexing rate of 61.9%
and for the second place is Mc Donald’s with 20.1% of index rate. This Top Brand
2012 survey held in 8 cities: Bandung, Jakarta, Makassar, Medan, Semarang,
Surabaya, Balikpapan, and Pekanbaru. The random samples in each city are 400
persons. The total number of random respondents surveyed is 3250, and the total
number of booster respondents is 850. This survey informs us which brands are
known very well for Indonesian people. Here is the result of Top Brand survey 2012;

Figure 1.3: The Result of Top Brand 2012, category in Retail business of
Fast Food Restaurants.

Source: Top Brand 2012 survey

The result from the survey above explains how Indonesian people still take
KFC as the top of brand in fast food restaurants. KFC Indonesia with the many of
outlets that KFC Indonesia has, we can find it easily everywhere. Even in every big
city and place or areas that have so many people, there will be outlets for KFC. People
can consume this fast food with the many varieties of products whenever they want,
the consumer also can freely consume the products, almost all people with the
different ages and economic condition can consume fast food. But nowadays, for
eating in the fast food restaurants like KFC is not a special thing, it becomes a modern
lifestyle when the family especially the mother doesn’t need to cook and prepared
foods, they just come to the outlets then order the food, eat there with the husband and
their children.
Another reasons that people to consume fast food is the lack of time that
people get in daily works, people usually do anything in an expressway to fulfill what
they need. Working from the morning until afternoon then at night makes people do
not have time to prepare their food then they just go to American fast food like KFC.
Fast food becomes the solution of people who do not have enough time for prepare
their foods. With the 24 hour delivery services (for some outlets), people have their
decision to consuming fast food. With the good economic background, the higher
price when consuming fast food it will not become a matter. People also do not take
attention with the low nutrients ingredients, what they want is just the delicious taste
that can fulfill their hunger. In short, there are many disadvantages for consuming fast
food but people still oftenly consume it.

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


theory by Kotler and Armstrong. Consumer behavior when they decide to buy or
purchase something of they want, is based on the several factor that affect the
consumer for purchase it. There are cultural factor, social factor, personal factor, and
psychological factor. This research is taken for personal factor, then personal factor
consist of several factors such as age, occupation, economic situation, lifestyle,
personality and self-concept. In this research, the researcher is to analyze of personal
factor that motivate people toward to their purchase decision in purchasing and
consuming American fast food Kentucky Fried Chicken (KFC).

1.2 Company Profile

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


Gelael Family founded PT Fast Food Indonesia Tbk., in 1978. In 1979, the company
opens the first KFC fast food restaurant outlet in October at Melawai Street in Jakarta.
With the entry of Salim Group in 1990 as one of the major shareholders, Company's
expansion initiatives were reinforced and in 1993, the Company became publicly
listed in Indonesia Stock Exchange to further enhance the development growth. The
present majority shareholding of 80% is distributed 43.84% to PT Gelael Pratama,
owned by the Gelael Group and 35.84% to PT Megah Eraraharja, a company under
the Salim Group; while the Public and Cooperatives share the minority (20%)
PT. Fast Food Indonesia Tbk., was given the license to use KFC brand by its
present franchisor, Yum! Asia Franchise Pte Ltd, which is part of Yum! Restaurants
International (YRI). YRI itself is a company under Yum! Brands Inc, a publicly-listed
company in the U.S. and the franchise owner of four other well-known brands, i.e.
Pizza Hut, Taco Bell, A&W, and Long John Silvers.

The first outlet has successful business and it start the way for the opening of
more additional outlets in Jakarta. Also, the outlets expansion to every regional
coverage including other major cities in Indonesia, like Bandung, Semarang,
Surabaya, Medan, Makassar, and Manado. By the many outlets that KFC opens, it
makes KFC become dominant brand in fast food franchise business in Indonesia.
Now KFC has 425 outlets of restaurants to serve Indonesian people in 95 cities in
Indonesia.

1.2.1 Products

KFC has main products in fried chicken, Colonel's Original Recipe and Hot &
Crispy Chicken. KFC products grouped into several categories as Menu Goceng,
Menu Praktis, and package meals. Menu Goceng category, which means are all the
menu items price at Rp5,000 each and not including tax. There are more than 10
menu items providing real value and the most “sell well” items are Mocha Float and
OR Burger Deluxe. To add variety to this Goceng menu category, menu selections
were changed due the changing preferential taste of customers.

On the other hand, Menu Praktis category includes menu items that are easy to
take away and can be consume easily, like Colonel Burger, Twister, Colonel
Yakiniku, etc.

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


combinations) and value meals, like Super Panas and KFC Attack are continuously
offered. Supplementing these core menu items are products catering to local market
taste, like Potato Croquette (Perkedel), Rice (Indonesian staple food), Salad, and KFC
Soup. KFC also offers various choices of beverages such as soda or non-soda drinks.

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


of service in all free-standing outlets, means the outlets has independent building not
joining another mall or other building. KFC restaurant outlets by providing a wide
range of quality coffee menu items, hot and cold, served in a separate counter with
designated seating for coffee lovers. To attract customers during lean day-part of
operation, the Company also has Krushers beverage menu item with a wide choice of
flavors.

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

Vision:

Maintain KFC’s market leadership and always be the No. 1 brand in the
QSR(Quick Service Restaurants) business in Indonesia by being the most modern
and favorite restaurant in terms of product, value, service, and assets.

Mission:

Strengthening KFC brand image through innovative strategies and ideas,


improving customers’ dining experience by continuously and consistently providing
quality products, services, and assets suited to customers’ changing needs and taste.

1.2.3 KFC in Lippo Cikarang Mall Profiles

This research conducts in scope of KFC Mall Lippo Cikarang, the outlet in
Lippo Cikarang Mall was established on 10th June 1995. The KFC outlet in Lippo
CIkarang Mall has three main services of sales, first there is mother store or main
store in the first floor and in second floor KFC has a small kiosk to serve another
customer, and the last there are home delivery service. The manager of KFC outlet in
Lippo Cikarang Mall is Mrs. Maria Ulfah, with the assistant manager with Mr.
Wasyanto. There are also three shift leaders Mrs. Ameliana, Mr. Teodorus Seru, and
Mr. Ahmad Suseno. In this October, KFC outlet in Lippo Cikarang Mall has 42
people of employees including in mother store, kiosk and home delivery.

These graphics explain the total sales and total customers of KFC outlet in
Lippo Cikarang Mall period of January until October 2012.
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

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


Period January – October 2012
Source: KFC Lippo Cikarang Mall outlet data.

30000

23870
25000
20313
20000 19448
20444 20978 21089 20910
e 20866 19205
lp 18072
o 15000
e
P
10000

5000

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


Period January – October 2012
Source: KFC Lippo Cikarang Mall outlet data.
1.3 Problem Identified

Based from the explanation above, consuming fast food as the part of modern
lifestyle for many people who are busy with their activities and have no time to
prepare foods, so they just take fast food to eat and don’t realize how harmful fast
food for our body. As we know those varieties of fast food are well known as a junk
food. Junk food refers to fast foods which are easy to make and easy to consume, zero
in nutrition value, have only high fat to cause an illness (dietpolicy.com, 2012).

Salted snack foods, candy, gum, most sweet desserts, fried fast food and
carbonated beverages are some of the major junk foods. Fast food that we often to eat
like fried chicken, or another pre heated food, also another drinks with zero nutrition
but has high level of sugar or another chemical ingredient such as coloring and taste
maker can called as a junk food. Comparing the advantages of fast food is faster serve
time and cheap price of food than the disadvantages is more dangerous and harmful
for our body. The problem occurs when consuming fast food is health desease and
monetary problem for several people.

It is become the fact when consuming fast food, it will increase the illness or
diseases risk caused by fast food. The most common disease or serious health problem
are overweight or obesity, diabetic and high cholesterol level to have heart and liver
illness (WHO.int, 2012). Overweight or obesity are both labels for ranges of weight
that are greater than what is generally considered healthy for a given height.

“Overweight and obesity are the fifth leading risk for global deaths. At least
2.8 million adults die each year as a result of being overweight or obese. In addition,
44% of the diabetes burden, 23% of the ischemic heart disease burden and between
7% and 41% of certain cancer burdens are attributable to overweight and obesity”.
Overweight also closely related with high level of fat or cholesterol then it can cause
the possibility of coronary heart disease because the accumulation of plaque of
cholesterol or fat in blood vessel.
Diabetic caused by consuming fast food with high level of sugar (WHO.int,
2012). When consuming fast food usually people have their dessert with another
sweet food or drinks. This sweet food or drinks have high sugar level that potential
causing diabetic disease. This high level of sugar also affects to the obesity disease.
Diabetes increases the risk of heart disease and stroke. 50% of people with diabetes
die of cardiovascular disease.

The dangerous health risk caused by consuming fast food, there are still many
people like to consume it and makes it to become as part of their modern style. People
for sure know the consequence of consuming junk food, but they do not pay attention
to that harmful risk.

When they purchase or buy the product, several factors affected the consumer
behavior; there are cultural factor, social factor, personal factor, and psychological
factor. In this research, researcher takes the personal factor with age and lifecycle,
occupation, lifestyle, personality as the factors. The problem is to find the dominant
factor based on the personal factor that motivates people to consume American fast
food Kentucky Fried Chicken and from the personal factors, researchers want to find
any correlation between the factors and consumer decision to consume fast food.

1.4 Statement of Problem

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


problem for this study is:

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


personalities) affect the people motivation toward to people purchase
decision in purchasing and consuming fast food?
b) What is the dominant factor or variable toward to people purchase decision
in purchasing and consuming fast food in the following factors of personal:
Age, occupation, economic situation, lifestyle and personalities?
1.5 Research Objectives

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


motivation Age, occupation, economic situation, lifestyle and personalities
that affect people purchase decision in purchasing or consuming fastfood.
b) To identify the dominant factor or variable that motivates people for
consuming fast food.

1.6 Significance of Study

a. Theoritical Significance

For develop the science study, especially for the economics field study,
this research is conduct. In addition, the researcher hopes this research can
give the contribution and can be used as the reference for the consumer
behavior study and the development of fast food business, so that the fast
food business investors can know more about consumer behavior
especially for the personal factor.

b. Practical Significance

For PT. Fast Food Indonesia Tbk., as the holder of KFC franchising in
Indonesia
To contribute the additional information about the consumber behavior
especially on the personal factor that motivate people to comsume this
American fast food. Based on the result of this research, they can make
new program or another strategies in market their products so the
consumer will purchase or consume more.
c. Academic Significance

For President University campus students or communities


This research can be references for continue studying about consumer
behavior and also can provide any information needed for knowing more
about American fast food Kentucky Fried Chicken.
1.7 Theoretical Framework

Characteristics of Consumer Behavior

Cultural

- Culture
- Sub Culture
- Social Class

Social

- Reference groups
- Family
- Roles and status

Personal

- Age and Life cycle (X1)


- Occupation(X2)
- Economic situation(X3) Purchase Decision (y)
- Life style(X4)
- Personalities and self
concept (X5)

Psychological

- Motivation
- Perception
- Learning
- Belief and attitudes

Figure 1.6 Theoretical Framework

Kotler and Armstrong, 2008


1.8 Scope and Limitation

Based on the aim of the research is that the researcher wants to know, what is
the dominant factor from the personal factor on consumer behavior, that motivate
people to consume American fast food Kentucky Fried Chicken KFC. The researcher
choose KFC, because it is the one of many culinary business industry that serve
American type fast food specially for fried chicken also, the modern lifestyle
nowadays, take people to consume fast food than cooking for their food. This research
is conduct as a case study for KFC outlet in Lippo Cikarang Mall. The researcher
chooses outlets in Cikarang, is for the affordable place to take the research and this
outlet have many customer that consist of young, adults, and old ages people.
Consumer behavior affected from several factors; social, cultural, personal, and
psychological factor, the researcher limited the scope of the research is just on the
personal factor.

There are many factors from characteristics of consumer that affect person to
consume or decide purchasing goods, the researcher chooses personal factor in
consumer behavior that motivate people to consume the American fast food because
the factors in personal such as age, occupation, economic situation, lifestyle and
personalities are the most interesting factor to be researched. Age are the factor that
influenced person to buy some products, because the maturity level in thinking
influenced person to purchase and consume the products, people also nowadays think
how to adjust what kind of goods that they purchase and consume based on their
occupation and economic situation. To consume or purchase the non-cheap goods,
they must think about their economic situation in condition of manage their outcome
to be lower than their income. Lifestyle and personalities also influenced how they
lives in this modern era, so it will affect what products or brands that they purchase.

1.9 Assumptions and Hypothesis

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


the researcher take the hypothesis as the follow:
Null Hypothesis (Ho1): Age & Life Cycle factor has no influence toward to people
purchase decision in purchasing and consuming fast food.
Alternate Hypothesis (Ha1): Age & Life Cycle factor has influence toward to people
purchase decision in purchasing and consuming fast food.

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


purchase decision in purchasing and consuming fast food.
Alternate Hypothesis (Ha2): Occupation factor has influence toward to people
purchase decision in purchasing and consuming fast food.

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


purchase decision in purchasing and consuming fast food.
Alternate Hypothesis (Ha5): Personalities 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.

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


but the prior caused by the fast food. By consuming a high calories
level and low nutrition level of food. Obese identical with other serious
diseases, such as high cholesterol level and heart disease.

Diabetic A disease that can be caused by consuming fast food, another side
dishes or beverages that contains high level of sugar. Majority people
get diabetic types – 2, it caused by negative or poor lifestyle that
people have.
1.11 Chapter Outline

Chapter I Introduction

This chapter consists of background of study, Kentucky Fried Chicken


Indonesia company profiles, problem identified, statement of problem,
research objectives, significance of study, theoretical framework, scope
limitations, assumption and hypothesis, definition of term and last, chapter
outline.

Chapter II Literature Review

This chapter consists of consumer behavior theory, characteristics of consumer


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

Chapter III Research Methodology

This chapter consists of research methodology theory, research framework,


research time and place, research instruments, sampling design, descriptive
analysis, statistical instruments.

Chapter IV Analysis of Data and Interpretation of Result

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


interpretation of result. Descriptive analysis consist of several descriptive
result such as characteristics of respondents, mean score and overall mean
score analysis, statistical descriptive and classic data assumption.

Chapter V Conclusion and Recommendation

This chapter consists of conclusion and several recommendations for


theoretical, practical and academicals significance.
CHAPTER II
LITERATURE REVIEW

2.1 Consumer Behavior


According to Kuester, Sabine (2012,p110) “Consumer behaviour is the study
of individuals, groups, or organizations and the processes they use to select, secure,
and dispose of products, services, experiences, or ideas to satisfy needs and the
impacts that these processes have on the consumer and society”.

The definition of consumer buyer behavior according Kotler & Armstromg


(2008, p122); “Consumer buyer behavior refers to the buying behavior of final
consumers – individuals and households who buy goods and services for personal
consumption”.

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


“Consumer behavior is defined in many ways but it can be accepted as 'the behavior
that consumers display in searching for, purchasing, using, evaluating and disposing
of products and services that they expect will satisfy their needs”.

This consumer behavior from the definitions above, can be explained also as
study for a process of how consumer or people have their decision to select, purchase,
or consuming goods or services based on their needs and get the satisfaction from the
purchasing decision. According to Peter, J. Paul 2005; consumer behaviors involves
the thoughs and feelings people experience and actions they performed in
consumption processes, it also includes all the things in the environment that
influences thouthgt, feelings and actions”

Not all people will buy the same products; they have their own thinking
before deciding to purchasing goods or services. Consumer behavior refers to the
selection, purchase and consumption of goods and services for the satisfaction of their
wants. There are different processes involved in the consumer behavior. Initially the
consumer tries to find what commodities they would like to consume, then they
selected any goods or services that they think is the best. After selecting the products,
the consumer makes an estimate of the available money that they can spend.
Lastly, the consumer analyzes the prevailing prices of commodities and takes
the decision about the goods that they will purchase. The all consumers combine into
consumer market, the definition of consumer market according principles of
marketing a global perspective book is “all the individuals and households who buy or
acquire goods and services for personal consumptions.”

Consumer behavior deals with why people want to buy and why people do not
want to buy the products. Consumer purchases are influenced by the characteristic of
the consumer behavior such as cultural factor, social factor, personal factor, and
psychological factor.

2.2 Characteristics of Consumer Behavior


There are five characteristics of consumer behavior, which influence strongly
people buying decision process according to Kotler and Armstrong, 2008. There are;

a. Cultural factor
b. Social Factor
c. Personal Factor
d. Psychological Factor
Characteristics of consumer behavior

Cultural Social Personal Psychological

• Culture • Reference • Age and Life • Motivation


groups cycle • Perception
• Occupation
• Sub • Family • Learning
• Economic
Culture • Roles and situation • Belief and
status • Life style attitudes
• Social • Personalities and
Class self concept

Purchase Decision

Figure 2.1 Factors Influencing Consumer Behavior


Source: Kotler and Armstrong, 2008

2.2.1 Cultural Factors

Cultural factors have strong influence to consumer behavior. According to Kotler and
Armstrong, 2008, there are three factors inside cultural factors; culture, subculture,
and social class.

a. Culture

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


learned by a member of society from family and other important institution.
This culture must be learned in order to know the consumer behavior. The
influence of culture on buying behavior varies from country to country.
b. Subculture

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


shared value system based on common life experience and situations. Subculture
includes nationalities, religions, racial groups, and geographic regions.

c. Social Class

Every society has a social class structure. Social classes are society’s relatively
permanent and ordered divisions in a society whose members share similar
values, interests, and behaviors. Social class not only determined from single
factor such as income, but also measured combination of occupation, income,
education, wealth, and other variables.

2.2.2 Social Factors

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


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

a. Reference Group

Grioups that have direct influence and to which a person belongs are called
membership group, membership group serve as direct or indirect points of comparison
or reference in forming a person attitudes and behavior. When a person decides to buy
a product, reference of groups gives recommendation and influence that person mind
to buy or do not buy the products, so it will affect the consumer behavior.

b. Family

Family members can strongly influence buyer behavior. The family is the
most important consumer buying organization in society. The members of the family
can give influence when the person in the family wants to purchase some products or
services.
c. Roles and status

People usually choose the products appropriate to their roles and status. For example,
person in the family is a father, and in the organization is a vice president, then in
company he will buy clothes that reflects his role and status in the organization as the
vice president.

2.2.3 Psychological Factors

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


factors that influence the consumer behavior for buying decision, there are
motivation, perception, learning, and belief and attitudes.

a. Motivation

The level of motivation also affects the buying behavior of customers. Every
person has different needs such as physiological needs, biological needs, social needs
etc. Therefore, a need becomes a motive when it is more pressing to direct the person
to seek satisfaction. Motive is a need that is sufficiently pressing to direct the person
to seek satisfaction of the need.

Another theory for human need, by Maslow from the book “essential
management” by Harold Koontz & Heinz Weihrich. (2006). Abraham Maslow
explained the hierarchy of needs why people driven by particular of needs at
particular times. From the most pressing at the bottom to the last pressing at the top.

Figure 2.2 Maslow’s Hierarchy of Needs

Source: Harold Koontz & Heinz Weihrich. (2006)


b. Perception

Perception is the process of people selecting, organizing and interpreting


information in a way to produce a meaningful picture of theworld. Three different
perceptual processes are selective attention, selective distortion and selective
retention.

c. Learning

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


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

d. Belief and attitudes

Customer possesses specific belief and attitude towards various products. Beliefs and
attitudes make up brand image and affect consumer buying behavior. Belief is a
descriptive thought a person has about something, may be based on the
knowledge,opinion, or faith and may or may not carry an emotional charge. Attitudes
describes a person relatively consistent evaluations, feelings, and tendencies toward
object or idea.

2.2.4 Personal factors

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


personal characteristics such as the buyer age and life cycle stage, occupation,
economic situation, life style, and personality and concept. This research concern
about personal factors and here is the theory of consumer buying behavior based on
personal factor.

a. Age and Life Cycle Stage

People change the goods and services that they buy over the lifetimes. Taste in food,
clothes, furniture, and recreation are often age related. There will be different from
young age person taste to old age person taste, this different based on the age. Life
cycle stage for example from the single, married, have a family, unmarried, or another
cycle stage will affect the consumer behavior.
There are five segments of life age;the youth segment includes customer younger than
18. Getting started consists customer aged 18 to 35, who are going through first
experience in their lifes for example graduated, first job, first marriage. Builders
customer aged 35 to 50 are in the peak of earnings years. Accumulators aged 50 to 60
worry about saving for retirement and wisely investing. The last is preservers,
customer aged above 60 want to maximize their retirement income to maintain a
desired style.

b. Occupation

A person occupation affects the good or services that people bought and the
occupation of a person has significant impact on his buying behavior. For example the
white collar who works in a company as the manager, they will buy clothes that suit
for their occupation, not the informal but formal clothes and another example a
marketing manager of an organization will try to purchase business suits, whereas a
low level worker in the same organization will purchase rugged work clothes.

c. Economic Condition

Consumer economic situation has great influence on his buying behavior. If the
income and savings of a customer is high then he will purchase products that are more
expensive. On the other hand, a person with low income and savings will purchase
inexpensive products. Marketers of income sensitive goods watch trends in personal
income, savings, and interest rates. The economic condition of personal and the
current economic issue will affect customer’s decision before buying goods and
services. The personal economic condition of the cardholders cover; spendable
income, savings and assets, debts, borrowing power, and also attitudes toward
spending and saving.

d. Lifestyle

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


also can determined as a person pattern of living as expressed in their Activities,
Interest, and Opinion. People who are coming from same culture, or subculture, social
class, occupation may have different lifestyle. It involves measuring consumer’s
major AIO dimensions. Activities such as work, hobbies, shopping, sports, and social
events, Interest such as food, fashion, family, and recreation, Opinions such as about
themselves, social issue, business, and products. Lifestyle capture more than the
person’s social class or personality and it profiles a person pattern of acting and
interacting in the world.

e. Personality and Self Concept

Each person’s distinct personality influences his or her buying behavior. Personality
refers to the unique psychological characteristics that lead to relatively consistent and
lasting response to one’s own environment. Personality changes from person to
person, time to time and place to place. Therefore it can greatly influence the buying
behavior of customers. Actually, Personality is not what one wears; rather it is the
totality of behavior of a man in different circumstances. It has different characteristics
such as: dominance, aggressiveness, self-confidence etc which can be useful to
determine the consumer behavior for particular product or service. Many marketers
use a concept related ro personality, a person self-concept also called as self image.
The basic self concept premise is that people possessions contribute to and reflect
their identities.

2.3 Types of Buying decision Behavior

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


Marketing; Text and Case, (2012) proposed four types of decision making behavior
depending upon of buyer involvement and perceived differentiation among brands.
The four types are complex buying, dissonance reducing, variety seeking and habitual
buying behavior.

High Involvement Low involvement

Significant differences Complex buying Variety seeking


between brands behavior behavior

Few differences between Dissonance reducing Habitual buying


brands buying behavior behavior

Figure 2.3; Four types of buying decision behavior


Source; Henry Assael theory, by Harsh V. Verma 2012.
a. Complex Buying Behavior

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


consumer in situations characterized by high consumer involvement in a purchase and
significant perceived differences among brands. According to Harsh V. Verma 2012,
this mode called as complex because of the full length of the process and high rigor
involved. There are three step sequence of complex buying behavior, first developing
belief about the product, then attitudes, and then making a thoughtful purchase choice.

b. Dissonance-Reducing Buying Behavior

Dissonance reducing behavior occurs when consumers are highly involved


with an expensive, infrequent, or risky purchase, but see little difference among
brands. After the purchase, consumer will experience post purchase dissonance. The
customer may experience dissonance after the purchase because of unmet
expectations or hearing good about unchosen alternatives products. Unlike complex
buying, where recognition and affect develop before purchase, it occurs at post-
purchase stage in dissonance reducing behavior.

c. Habitual Buying Behavior

Consumer buying behavior in situation characterized by low consumer


involvement and few significant perceived brand differences. According to Harsh V.
Verma 2012, habitual buying signifies a situation when the decision-making is
replaced by habit. Habit is kind of behavior where little or no cognitive activity is
involved. Consumer appear to have low involvement with most low cost, frequently
purchased products.

d. Variety Seeking Buying Behavior

Consumer undertakes variety seeking buying behavior in situation


characterized by low consumer involvement but significant perceived brand
differences. For example, consumers often do a lot of brand switching, from one
product then another product because of during the consumption they didn’t get any
satisfaction, or simply to try something different. Brand switching occurs for the sake
of variety rather than because of dissatisfaction. This situation combines significant
perceived differences among brands with low customer involvement or lower buying
significance.

2.4 Buyer Decision Process


According to Kotler and Armstrong 2008, people in decide to purchase the
products there are five stage in buyer decision. There are; need recognition,
information search, evaluation of alternatives, purchase decision, and post purchase
behavior.

Need Recognition

Information Search

Evaluation of alternatives

Purchase decision

Postpurchase behavior

Figure 2.4; Five steps in buyer decision process


Source: Philip Kotler & Gary Armstrong (2008).

1. Need recognition

In this first step, person or consumer realize and discover the needed. The
buying process starts with need recognition in other word, buyer recognizers a
problem or need. the need can be started by internal stimuli when one of the person’s
normal needs for example hunger, thirst to a level high enough to become drive and
for the external stimuli for example, if one of the person thinking about buying car
after they discussed with another people.

2. Information search

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


product. The stage of information search is the stage of buyer decision process in
which the consumer is aroused to search for more information; the consumer may
simply heightened attention or may go into active information search. Consumers can
obtain information from any of several sources that include personal sources,
commercial sources, public sources and experiential sources. Personal sources such as
family, friends, neighbors, and acquaintances. Commercial sources such as
advertising, websites, dealers, packing, and display. Public sources such as mass
media, consumer rating organization, internet searches. Experiental sources for
example handling and examining for using the products.

3. Evaluation of Alternatives

Consumer makes final judgment through comparing the alternatives. Evaluation of


alternatives is the stage of the buyer decision process in which the consumer uses
information to evaluate brands in the choice set.

4. Purchase Decision

After the evaluation, consumer ranks brands and forms purchase intention. Consumer
may form an intention to buy the most preferred brand or the buyer’s decision about
which brand to purchase. In purchase decision, there are two factors between purchase
intention and purchase decision. First is an attitude of others, other people that
important to the customer could change the decision of purchasing one product. the
second factor is an unexpected situational factors, the consumer may form a purchase
intention based on expected income, expected prize, and product benefits or an
unexpected events may change the purchase decision.

5. Post purchase behavior

The stage of the buyer decision process in which the consumers takes further
action after purchase, based on the satisfaction or dissatisfaction of the products that
they purchase. The consumer can be categorized to satisfied or dissatisfied after a
purchasing from the relationship between the consumers expectation and products
perceived performance. If the product falls from customer’s expectation, it will make
the customer disappointed. If it meets expectation then the customer is satisfied, if it
exceeds expectation then the consumer is delighted.
CHAPTER III

RESEARCH METHODOLOGY

3.1 Research Methodology


Research methodology according to Merriam Webster dictionary is the
analysis of the principles of methods, rules, and postulates employed by a discipline
in the research, research methodology also applied as the systematic study of methods
that are, can be, or have been applied within a discipline in the research. In the
research, there are two majors research methodology; qualitative and quantitative
analysis. In this research, the researcher use quantitative analysis method for the
method of research. According to Given & Lisa M., 2008, quantitative research is
“Quantitative research refers to the systematic empirical investigation of social
phenomena via statistical, mathematical or computational techniques. Quantitative
data is any data that is in numerical form such as statistics, percentages, etc.”

Measurement and statistics are central to quantitative research because they


are the connections between empirical observation and mathematical expression of
relations. Quantitative researcher concerned with the development and testing
hypotheses and the generation of models and theories that explain behavior (Wayne
K. Hoy, p1, 2009).

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


collecting data that is numerically based and amenable to such analytical methods as
statistical correlations, often in relation to hypothesis testing”.

The researcher uses quantitative method because it provides the fundamental


connection between empirical observation and mathematical expression of
quantitative relationships. Quantitative research methods were originally developed in
the natural sciences to study natural phenomena (Hohmann U., 2006).
3.2 Research Framework
Research framework consist of the process of the research that researchers takes,
the figure below explains the steps or process in conducting this research.

Statement of Problem

Literature Review

Survey

Pre-Questionnaire

No
Validity and Reliability Test

Processing Data, Valid and Reliable?

Yes

Final Questionnaire

Data Transformation and Processing Data Using Ms. Excel


2003

Analyzing Data Using SPSS


Program, Ver. 16.0

Conclusion

Figure 3.1 Research Framework


Source: Construct by researcher
3.3 Research Time and Place

The research was conducted in Lippo Cikarang Mall, the respondents are
people who are purchasing and consuming American fast food. In this research, the
researcher takes a study case or the limitation of the research in Kentucky Fried
Chicken, the fast food or quick service restaurants outlet in Lippo Cikarang Mall.
First, the preliminary research or to gathering data for pre-questionnaire was conduct
at November 2012, and using the questionnaire methods. After the researcher finishes
the pre-test questionnaire and testing a validity and reliability test, the researcher
conducted the final Questionnaire in December 2012 by using the same method of
Questionnaire.

3.4 Research Instruments

In this research, the researcher collected the data from the surveys to the
manager of the outlet, literature review, internet research, and questionnaires as the
primary data. To analyze the collected data, researcher used SPSS program version
16.0, and Microsoft Excel program.

3.4.1 Survey

In this research, before doing the pre-questionnaire test, the researcher seeks
information, problems, and the phenomena of any issue that related to the researcher
major, management, concentration in International Business. Researcher takes this
problem of analysis of consumer behavior especially in personal factor that influence
people toward purchase decision or consuming the American fast food, and in this
case, the researcher take a case study in Lippo Cikarang Mall. As mentioned above,
the researcher takes target of respondents for the survey is people who are purchase or
consuming American fast food.
3.4.2 Questionnaire

The researcher to gathering the primary data uses questionnaire, then the raw
data from the questionnaire need to be processed to become the result. The questions
or statements in the researcher questionnaire represent of every variables that
researchers used in this research. Every variable has more than one statement, and it
will be tested with the respondents. The questionnaire was invented by Sir Francis
Galton.

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


and other prompts for the purpose of gathering information from respondents.
Although they are often designed for statistical analysis of the responses, this is not
always the case. “A distinction can be made between questionnaires with questions
that measure separate variables, and questionnaires with questions that are aggregated
into either a scale or index”.

Questionnaire in this research is conducted to know what are the most factor
that affect people toward purchase decision of purchasing or consuming the American
fast food. first, for the pre-testing the questionnaire, researcher has 28 questions or
statements that represent of five X (independent) variables and one Y(dependent)
variable. In the pre-questionnaire testing, researcher distributes the questionnaire for
20 people. After processing the pre-test questionnaire, and doing a validity and
reliability test, researcher adjust the statements into 25 statements. The adjustment
needed because only the valid and reliable statements can be used for final
questionnaire. Manual questionnaire used by the researcher in this research by
distribute to the people in the research place, then the data need to be coded manually
into the Ms. Excel before processing with SPSS program.

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


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

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


level of agreement or disagreement on a symmetric agree-disagree scale for a series of
statements. Thus, the range captures the intensity of their feelings for a given item”.
Agreement type of statement used in the questionnaire and the respondent can
choose the answer from strongly disagree level until strongly agree level. There are
five answer for Likert scale that respondents can choose; “Strongly
Agree”,”Agree”,”Neutral”,”Disagree”, and “Strongly Disagree”. The researcher
wants to get the answer from the correspondents by using points of every answer.
Then, a closed-ended question is a question format that limits respondents with a list
of answer choices from which they must choice to answer the question. With the
closed ended question, correspondent can answer the question quickly with just
choosing the number from the Likert Scale.

Table 3.1; Likert Scale for Agreement Statements

Likert Scale Table for Agreement Statements

Meaning Score of Likert Scale


“Strongly Agree” 5
“Agree” 4
“Neutral” 3
“Disagree” 2
“Strongly Disagree” 1

Source; Likert Scale


Table 3.2 Pre-Questionnaire table

Manifest
Factors Variables Measurements Scale
Variables

X1.1 Menu of American fast food is match


Likert Scale
with my taste.
X1.2 I often invite my family members, to
Likert Scale
have meal here.
Age &
X1.3 This fast food restaurant is great choice
Likert Scale
Life when I had little time to have meal.
X1.4 I feel comfort to have meal here, in this
Cycle Likert Scale
fast food restaurant.
X2.1 I often to eat here while having lunch
Likert Scale
break or free time at office
I often eat here and hang in this fast
X2.2 food restaurant with my business Likert Scale
Occupa- friend.
X2.3 This fast food restaurant outlet is near
tion Likert Scale
with my work office.
X2.4 I often meet with my business clients or
Likert Scale
clients of my work here.
X2.5 In my opinion, this restaurant can be a
Likert Scale
place to meet with my client business.
X3.1 The price of menu that this Fast food
Likert Scale
restaurant offered is quite affordable.
I often to eat this American fast food
Economic X3.2 like this and it not affect my financial Likert Scale
condition.
Situation
X3.3 Having meal in KFC, could show my
Likert Scale
social class
X3.4 Cost incurred to eat here in comparison
Likert Scale
to cook my own food is almost equal.
X4.1 I like to eat here and hanging out with
Likert Scale
my friends here.
X4.2 I like to eat here with my family. Likert Scale

Life style X4.3 I prefer to have meal outside than


Likert Scale
cooking at home.
X4.4 Culinary in American fast food is one of
Likert Scale
my hobbies.
X4.5 I often to use 24 hours delivery service Likert Scale

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


Likert Scale
Persona- food in this American fast food.
X5.2 This American fast food has many food
lity & Likert Scale
menus to offer.
Self In my opinion, KFC is still number one
X5.3 for taste and quality of food compare Likert Scale
Concept to other brands.
X5.4 Service given in this outlet is very good. Likert Scale
X5.5 This outlet is very clean and comfort Likert Scale
I am purchasing this fast food menu
Y1.1 because of great taste and various Likert Scale
menus that match with my style.
I am purchasing this fast food menu
Y1.2 because of this outlet serve a comfort
Likert Scale
place to have meal and hanging with
my business friends.
Purchase Y1.3 I am purchasing this fast food menu
Likert Scale
because of the affordable price offered.
Decision
I am purchasing this fast food menu
Y1.4 because it can full fill the needs of
Likert Scale
people lifestyle (meal with family,
hanging with friends or family).
I am purchasing this fast food menu
Y1.5 because this outlet has various menu,
Likert Scale
comfort place, great facilities and good
service.
Source: Construct by Researcher

3.4.3 Data Analysis

For analyzing the data, the researcher used SPSS program and Microsoft
Excel. The SPSS software version 16.0 used to facilitate researcher in processing the
data from the questionnaire. Ms. Excel 2007 versions also used by the researcher for
coding the Likert Scale data from the questionnaire then continue processing with
SPSS.

3.5 Sampling Design

To get the primary data in this research, the researcher doing a survey by
questionnaire. Determination of sample in the survey is very important because it will
affect the level of accuracy of the data and the research. The researcher using non-
probability sampling technique, non probability sampling is a method where some
elements of the population have no chance of selection and the researcher create big
sample size to make more possibility if there is representing all the different
characteristics of the respondents. For the sampling method, the researcher use
purposive sampling, purposive sampling also known as judgmental sampling, where
the researcher choose or decide the sample from population that appropriate for
conducting the research.
Researcher decided to use a method to determine the minimum sample for this
research. The method is called Slovin Method. Slovin's formula allows a researcher to
sample the population with a desired degree of accuracy and also it gives the
researcher an idea of how large his sample size needs to be to ensure a reasonable
accuracy of results. The formula of Slovin Method is shown below:

n=

n = Number of Samples
N = Number of Population
e = Error Tolerance

In this case, the population of the people who are buying or eating in the KFC
outlet in Lippo Cikarang Mall are around 120 people in a day and the error tolerance
is 5%, the number of sample is:

n=

n = 92.3
n = 93

From the calculation of the formula above, the researcher sample, consist of
93 respondents for this research.

3.6 Statistical Instrument

Before the researcher starts the final questionnaire for the research, there is a
step known as pre-test questionnaire. In the pre-test questionnaire the researcher takes
a samples in total of 20 people, to test the questionnaire before distribute to the final
samples in total of 71 respondents. After collecting the pre-test questionnaire result of
20 people, the researcher take a pre test statistics such as validity and reliability test
by using the SPSS Ver. 16.0 program.

In the pre-test questionnaire, the researcher can asses more about the
questionnaire, the respondent understanding of the question in questionnaires, clarity
about the statement in questionnaire, also in the processing of validity and reliability
test, the researcher can improve the validity and reliability of every statement in the
questionnaire.

3.6.1 Validity Test

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


a final research, there are a step of validity test to measure the validity of every
statements that researcher creates in the questionnaire. It is important for a test result
to be valid in order for to get an accurately applied and interpreted questionnaire.

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


actual values of X and Y. The formula is:

r=

Where, n = the number of paired observations

∑X = the X variable summed


∑Y = the Y variable summed
2
∑X = the X variable squared and then summed
∑ Y2 = the Y variable squared and then summed
(∑ X)2 = the X variable summed and then squared
(∑ Y)2 = the Y variable summed and then squared
∑ XY = the sum of the product X and Y

In this research, researcher use SPSS version 16.0 to do validity testing, the result
of the validity test comes from comparison between “r” computation and “r” table.
“r” computation result comes from the SPSS calculation and “r” table comes from
“r” value of Pearson product moment which using 0.05 confidence level, and 20
respondents with the degree of freedom of 0.444 value.

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


computation value is bigger than the value of “r” table and if the “r” computation
value is smaller than the value of “r” table, it means that the question is invalid
Table 3.3Result of Validity Test

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

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
X3.4 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
Persona- X5.1 0.703796 0.444 Valid
lity & X5.2 0.565148 0.444 Valid
Self X5.3 0.603821 0.444 Valid
Concept X5.4 0.658435 0.444 Valid
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: Construct by Researcher

3.6.2 Reliability Test

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


variables. A questionnaire is relaiable of the variable or the statements are consistent
in what is intended to measure. The researcher using SPSS software version 16.0 in
this reliability test. If the Cronbach Alpha value is more than 0.700, it means that the
questions in the questionnaire are reliable and able to be used for the second time,
third time, or more in other researches by other researchers. When the value is closer
to 1, it means that the question is more reliable, while in other side, if the value is
closer to 0, it means that the question is not reliable.

The formula of Cronbach Alpha is as below:

α=

Where,
α = Instrument reliability’s coefficient
r = mean correlation coefficient between variables
k = number of questions

The indicators for the reliability using Cronbach’s Alpha test

α > .9 Excellent
α> .8 Good
α > .7 Acceptable
α > .6 Questionable
α > .5 Poor
α < .5 Unacceptable

Table 3.5 The Result of Reliability Test

Reliability Statistics

Cronbach’s
Alpha N of Items

.967 25

Source: SPPS Ver. 16.0 and Construct by Researcher

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,

= Indicator’s average n = Amount of Respondents

Xi = Score

= Frequency

After finished with the data per indicator, next step is calculating the overall
mean score toward variables in the research. This calculation will be done based on
the formula below (Sudijono, 2006, p.48):
Where:

= Overall average

= Average per indicator

n = Amount of respondents

After finished with OMS and MS, next step is classifying the data into class
interval where this process will give description about respondent opinion toward the
variables. This process will be done based on the formula below:

i=

Where:

i = Class interval

H = Highest score in likert scale (5)

L = Lowest score in likert scale (1)

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

From the formula above, scale of interval class for this research can be
conclude as following below:

= 0.8

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

a) 4.21 – 5.00 = Strongly agree


b) 3.41 – 4.20 = Agree
c) 2.61 – 3.40 = Average
d) 1.81 – 2.60 = Disagree
e) 1.00 – 1.80 = Strongly disagree
3.6.4 Data Classic Assumption
a. Normality

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


distribute by a normal distribution or not. According to Sunyoto, D. (2011), normality
test have to be done in order to determine whether the sample data taken from a
normally distributed population, so it can be used in parametric statistics (inferential
statistics) where this process will have great analysis of correlation and regression.

b. Multicollinearity

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


variables, in the regression model, the correlation between variables must not be
happened. If there is a correlation between independent variables, then it can called as
multicollinearity.

c. Autocorrelation

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


correlation bullies in period t with an error in period t-1, in short, it is a mathematical
tool for finding repeating patterns. The autocorrelation can be defined in the research
by seen from the amount of the Durbin-Watson (DW) result from using SPSS
program. the indicator of DW value to evaluate autocorrelation; Durbin Watson result
below -2 means there is positive autocorrelation, Durbin Watson rate result at
between -2 to +2 means no autocorrelation and Durbin Watson result above +2 means
there is negative autocorrelation, according to Sunyoto, D. (2011).

d. Heteroscedasticity

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


differentiation of variance from one residual to the other residual or not. The possible
existence of heteroscedasticity is a major concern in the application of regression
analysis, because the presence of heteroscedasticity can invalidate statistical tests of
significance that assume that the modeling errors are uncorrelated.
3.6.5 Descriptive Analysis

Descriptive statistics is the discipline of quantitatively describing the main


features of a collection of data. Descriptive statistics aim to summarize a sample,
rather than use the data to learn about the population that the sample of data is thought
to represent. Descriptive statistics provides simple summaries about the sample and
about the observations that have been made, for example the statistic of data such as
mean, median, mode, standard deviation.

3.6.6 Multiple Regression

This test become is important since it has purpose to analyze the relationship
between independent variable and dependent variable which is become the main
problem in this research. According to Wijaya, 2011, p.91 the formula for processing
this test as following below:

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

Where:
Y= dependent variable purchasing decision
a = Constanta
X1 = independent variable age and life cycle
X2 = independent variable occupation
X3 = independent variable economic situation
X4 = independent variable lifestyle
X5 = independent variable personality and self concept
b1 = age and life cycle regression coefficient
b2 = occupation regression coefficient
b3 = economic situation regression coefficient
b4 = lifestyle regression coefficient
b5 = personality and self concept regression coefficient
e = random error
3.6.7 Hypothesis Test

Hypothesis test used in order to know whether the total of sample in the
research has already strong enough to describe the population or not. Requirement
that used for this test is p value (sig) < α , since the researcher use α level in this
research is 5% so α = 0,05. This requirement use to reject H0 and accept H1

F Test

The aim of this test is to know whether all of independent variables (X)
simultaneously give significant effect to dependent variable (Y) or not. The criteria
that used to reject H0 and accept H1 is F computation > F table according to Sunyoto,
D (2011) and the formula to know value of F table is

F table = Fα (V1) (V2)

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

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

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

Where:

Fo = Value of F computation

b = Regression coefficients

X = Independent variable

S = Standard deviation of the regression coefficients


T Test

The aim of this test is to know whether each of independent variable (X) has
significant effect to dependent variable (Y) or not. The following below is the criteria
which used for this test:

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


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

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

Where:

= Value of t computation

= Regression coefficients

= Certain B value, depend on hypothesis

= Standard deviation of the regression coefficients

For 2 tailed test, value of α also should be divided into 2. To determine the
value of t table, the formula is t α/2 (n-k). For determining the decision for hypothesis
on this test can use the value of significance on coefficients table with the criteria:

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


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

3.6.8 Coefficient Correlation (r) and Determination (r2)

Correlation analysis point is to find the relationship between independent


variable and dependentvariable or X factor to Y factor. Subsequently. The researcher
used correlation coefficient table according to Sudijono, A. the r will have strong
correlation between X to Y if the value is closer to 1.
Table 3.6. The correlation coefficient table

Coeficient Interval Correlation Rate


0.00 - 0.199 Very Weak
0.20 - 0.399 Weak
0.40 - 0.599 Average
0.60 - 0.799 Strong
0.80 - 1.00 Very Strong
Source : Sudijono, Correlation Coefficient Cable

The scale of r value is between 0 \< r >/ 1, where : r = 1 , it means that the influence
of dependent and independent variable are positive perfectly (if the r value is getting
closer to 1, the effect is getting stronger and more positive). r = 0, it means that there
is no correlation between dependent and independent variable.

R2 in the next column r is to know how much of dependent variable (Y) can be
explained by the independent variable (X). the rest of R square value is explaining for
another factor.
CHAPTER IV
ANALYSIS OF DATA AND INTERPETATION OF
RESULT

4.1 Descriptive Analysis

4.1.1 Data collection

In collecting the data for the research, the researcher shares 25 valid
statements to people in the KFC outlet in KFC Lippo Cikarang Mall by distributing
questionnaire, after get permission from the manager of the outlet for conducting
research in the fast food outlet. The researcher used offline system questionnaire,
means the researcher went to the outlet for distribute the questionnaire directly to the
people who are purchase or consuming the fast food.

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


Slovin’s calculation method, in order to get the total sample in one population, that
already explained in chapter 3. For the calculation and testing method stated in
chapter 3, researcher used SPSS Program Ver. 16.0. and Microsoft Excel.

4.1.2 Characteristic of Respondent

a. Gender of the respondents.

The figure below explain the data based on the primary data collected from the
questionnaire, the characteristic of respondent for gender for this research are 34 male
respondents or 37% and 59 female respondents or 63% of 93 people that participate in
this research who are purchasing or consuming fast food in KFC outlet at Lippo
Cikarang Mall. The respondent majority is female. They are worker, who had lunck
break, work in the Lippo Cikarang area, or mothers who take their children for meals.
Male Female

37%
63%

Figure 4.1 Gender Distribution Chart

Source: primary data, Construct by researcher

b. Age of the Respondents

The figure below explains for the characteristic of respondent based on their
age, the researcher classified the age into three groups. First, there are total of 29
respondents or 31% that have age ranged from 17 until 25 years old. Second, there are
total of 41 respondents or 44% that have age ranged from 26 until 35 years old. And
the last, there are 23 respondents or 25% have their age above than 35 years old. Since
the KFC fast food restaurant can consumed by all age people, so there are many
people that have variety age have their meal there. Majority respondents are employee
who had lunch break in KFC outlet.

17-25 Yo 26-35 Yo > 35 Yo

25%
31%

44%
Figure 4.2 Age Distribution Chart

Source: primary data, Construct by researcher

c. Education Background of the Respondents

The figure below explains the education background of respondents in the research,
there are 4 respondents or 4% that have their education background for elementary
school until senior high school. Then, there are 33 respondents or 36% have the
education for diploma degree. Last, 56 respondents or 60% have their education for
university degree.

Elementary - Senior High Diploma University


4%

36%

60%

Figure 4.3 Education Background Distribution Chart

Source: primary data, Construct by researcher

d. Occupation Background

The data of respondents occupation background from the questionnaire, show


us the majority of respondents have their job as an employee of a company in Lippo
Cikarang area are 49 respondents or 53%. There are students also that have their meal
in KFC restaurant are 26 respondents or 28%. Another occupation majority in “Ibu
Rumah Tangga” are 11 respondents or 12%. Last, there are also an entrepreneur
people who have their meal are 7 respondents or 7%.
Students Employee Entrepreuneur Others

12%
7% 28%

53%
Figure 4.4 Occupation Background Distribution Chart

Source: primary data, Construct by researcher

e. Monthly Income

< 5 Million IDR 5-10 Million IDR 11-15 Million IDR


16-20 Million IDR > 20 Million IDR
11% 2% 2%

49%

36%

Figure 4.5 Monthly Income Distribution Chart

Source: primary data, Construct by researcher

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.

f. Respondent Awareness of Fast Food Risk

Besides knowing the characteristic of respondents, the researcher also wants to


know, are people aware for risk of health diseases caused by Fast Food? From the
questionnaire distributed to the respondents, the statement for the respondents “ I
aware of health risk by consuming fast food.”, then the result 89 respondents or 96%
knows and aware about the risk caused by consuming fast food, and 4 or 4%
respondents don’t know and don’t aware about the risk caused by consuming fast
food.

Yes, I do No, I don’t know

4%

96%

Figure 4.6 Respondent Awareness of Fast Food Risk Distribution Chart

Source: primary data, Construct by researcher

4.1.3 Mean Score and Overall Means Score Analysis

This is the result of mean score (MS) and overall means score (OMS) analysis
through 93 respondents that participate in this research. This test purpose is to know
the response from the respondents for the agreement level to the factor, by analyzing
statements or indicators from every variable in the questionnaire. There are five
interval class that explains the response from respondents to the statements or
indicators, there are; 4.21 – 5.00 is strongly agree, 3.41 – 4.20 is agree, 2.61 – 3.40 is
average, 1.81 – 2.60 is disagree and 1.00 – 1.80 is strongly disagree.
Table 4.1 Mean Score and Overall Mean score for Age & Life Cycle

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.

Overall Mean Score 3.54 3.41 – 4.20 Agree


Source: Primary data, construct by Researcher

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.

4.1.4 Statistical Descriptive

Table 4.7 Descriptive Statistics

Descriptive Statistics

Std.
N Range Minimum Maximum Mean Deviation Variance

Statistic Statistic Statistic Statistic Statistic Std. Error Statistic Statistic

x1 93 10 8 18 14.80 .215 2.072 4.295

x2 93 19 6 25 15.91 .396 3.821 14.601

x3 93 10 5 15 10.75 .228 2.200 4.840

x4 93 13 7 20 13.39 .247 2.387 5.696

x5 93 9 10 19 15.25 .179 1.730 2.993

y1 93 7 16 23 19.90 .167 1.609 2.588

Valid N
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.

4.1.5 Classic Data Assumption analysis

Next analysis that researcher wants to explain is multicollinearyty test. The


result is show in the table below.

Table 4.8 Result of Collinearity test

Collinearity Statistics

Tolerance VIF

.537 1.863

.572 1.748

.642 1.558

.688 1.453

.763 1.310

Source; SPSS Program Ver. 16.0

Multicollinearity is a statistical phenomenon in which two or more predictor


variables in a multiple regression model are highly correlated. The researcher use
SPSS program to test of there is a multicollinearity in the research. According to
Sunyoto, D. (2011), the condition of variance inflation factor (VIF) must be below
than 10, alpha tolerance 10% or 0.10 then the VIF = 10. (VIF, <10). For the indicator
of tolerance, the result is must above than 10% or 0.1. The researcher concludes there
is no collinearity, since the result from the table above, VIF result is below than 10,
and the tolerance computation is above than 0.1.

This research conducted with the 93 respondents. For testing the


autocorrelation, the researcher using Durbin Watson tests from SPSS program.
Autocorrelation in the research must not happen, and the indicators for Durbin
Watson test according to Sunyoto, D,(2011) p91,

Table 4.9 Result of Durbin Watson test

Durbin-Watson

1.425

Source; SPSS Program Ver. 16.0

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

Source: primary data, Construct by researcher

Figure 4.8 Normality Test Probability Plots Graphic

Source: primary data, Construct by researcher


From two figures above, the researcher concludes the data distribution in this research
is normal.
For last, last test result in multiple regressions analysis is heteroscedasticity
test. From the SPSS program, the researcher gets result of this test.

Figure 4.9 Result of Heteroscedasticity Test

Source: primary data, Construct by researcher

From the scatter plot result above, the researcher concludes heteroscedasticity
does not happen and data can be processed and analyzed.

4.2 Multiple Regression Analysis

The researcher used multiple regression test method to know the influence of
personal factor in characteristics of consumer behavior toward people purchase
decision in purchasing or consuming the American fast food, study case in KFC the
American fast food restaurant in Lippo Cikarang Mall. After distributing the
questionnaires consist of statements or indicator for every factors to the 93 repondents
that participate in this research, the researcher got result after processing the data by
SPSS program Ver.16.0 and the result are in the table below;
Table 4.10 Result of Multiple Regression Test (Coefficients)

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)

x1 .151 .069 .194 2.171 .033 .620 .227 .142

x2 .084 .036 .200 2.307 .023 .550 .240 .151

x3 .187 .060 .256 3.134 .002 .613 .318 .205

x4 .056 .053 .083 1.045 .299 .460 .111 .068

x5 .312 .070 .335 4.467 .000 .598 .432 .293

a. Dependent Variable:
y1
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

Table 4.11 Result of Multiple Regression Test (ANOVA)

ANOVAb

Model Sum of Squares df Mean Square F Sig.

1 Regression 149.123 5 29.825 29.152 .000a

Residual 89.006 87 1.023

Total 238.129 92

a. Predictors: (Constant), x5, x2, x3, x4, x1

b. Dependent Variable: y1

Source: SPSS program, ver. 16

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

a. Predictors: (Constant), x5, x2,


x3, x4, x1

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.

4.3 Interpretation of Result

In this part, the researcher will describe the result of this research about the
influence of Personal factor in characteristic of consumber behavior toward people
purchase decision in purchasing or consuming fast food KFC, study case in KFC
Lippo Cikarang Mall. Based on the ANOVA test or F-test table result, the
significance level is 0.000 lower than the alpha level 0.05 (5%), that means variable
of Age & Life Cycle(x1), Occupation(x2), Economic Situation(x3), Lifestyle and
Personality(x4) & Self-concept(X5) in this research affect or influence people
purchase decision.
a) Age and lifecycle (X1) toward Purchase decision (y)

From the result of multiple regression tests, the researcher can conclude; the
first factor, Age and life cycle stage (X1) has influence toward people purchase
decision. People purchase decision in purchasing goods or services are changeable
during their ages and lifetimes. From the questionnaire data, respondents are agree
with the menu of American fastfood that is match with their taste. The respondents
are also like to invite their family member to eat at American fast food KFC Lippo
Cikarang Mall. The short time break can be factor that people decide to have their
meal at this fast food restaurant and people are agreed to feel comfort to had meal in
the outlet.

b) Occupation (X2) toward Purchase decision (y)

Second factor, occupation (X2) also has influence toward people purchase
decision in this research. Occupation can determine how goods or services that people
purchase or buy. High position of a person, will make their decision for purchasing
the expensive, good, or match with their occupation. From the respondents answer,
they are all having average of opinion that occupation can affect their decision to eat
in the outlet, where average means people are agree and disagree or moderate to
assess the statements. Researcher can conclude their purchase in KFC affected by
their occupation for example the position of their jobs, outlet is near from their office,
or another factor such as follow their business mates to have meal there.

c) Economic situation (X3) toward Purchase decision (y)

Third factor, economic situation (X3), affects the people purchase decision in
consuming fast food. The basic of people purchase ability is their ability to buy with
considering their income. Income level of a person will affect their savings and
consumption. Higher income of person will also increase the level of savings and
increase their consumption. Lower income of a person will decrease their savings and
decreasing their consumption. The indicators of economic situation can affect their
decision in purchasing fast food can be seen from the respondents opinion.
Respondents are agree that price of fast food menu is affordable, the purchasing of
American fast food menu will not affect their economic condition, and the cost
occurred when cooking at home than buying fast food is almost equal.
d) Lifestyle (X4) toward Purchase decision (y)

Lifestyle (X4) or the fourth factor in this research has less influence toward
their purchase decision in purchasing American fast food KFC. Lifestyle is a part of
people, how do they live in activities, interest and opinions (AIO). Activities
dimension for example, work, hobbies, shopping, sports, interest for example, food or
culinary, fashion, entertainment, family, and opinion for example social issue,
business, and products. The researcher concludes the respondent consists of cikarang
people do not have same lifestyle for people that live in another city such as Bekasi
and Jakarta. In fact, the lifestyle between people in Cikarang is different with people
in Jakarta, this lifestyle differences caused by several factors such as, social
environment, economic background and the personality of the people. The different
lifestyle in American fast food culinary interest create a different result, so from the
result data, the lifestyle factor has less or no influence toward people purchase
decision in purchasing American fast food KFC. The different lifestyle in American
fast food culinary interest create a different result, so from the result data, the lifestyle
factor has less or no influence toward people purchase decision in purchasing
American fast food KFC.

e) Personality and self concept (X5) toward Purchase decision (y)

Last, Personality and Self-concept (X5) is the fifth factor in this research that
has influence to people purchase decision. From the data, the researcher can conclude
all respondents agree with their personal and their self-concept that influence their
purchase decision in purchasing fast food. People have different personalities and self
concept, but in this research, all of respondents have their same personality for having
their meal in American fast food KFC because of their personal reasons such as they
love to consume the American fast food especially KFC menu. Another reason for
personality and self concept is KFC restaurant has variety menu, delicious taste and
quality of food, service, etc better than another American fast food restaurant.

From the explanation above, the researcher concludes the people purchase
decision 62.6% affected by five factors above and for the individual factor. The most
dominant factor influence people purchase decision is personality and self-
concept factor(X5), it can be seen from T-test result, with the highest t computation
value (4.467) than another variables. According to Sunyoto, D. (2011), the dominant
factor can be seen from the highest result of t-test value. When consuming fast food or
often called as junk food, people must consider about the risk of health that caused by
consuming fast food. From this research, 96% of respondent knows about the health
risk but they ignores it and continue their purchasing because of the personality and
self-concept factor that most affect their purchase decision.
CHAPTER V
CONCLUSIONS AND RECOMMENDATIONS

5.1 Conclusion

Kentucky Fried Chicken is one of many quick service restaurants that sells
fast-American food menu in Indonesia, for Indonesian people KFC is still number one
to be chosen for several fast food restaurants, proof with the top brand survey in 2012.
Indonesian people love to consume this American fastfood menu. With the high risk
of health if consuming the fast food so much, mostly people are aware for the risk,
and still want consume it. There are many serious health illnesses caused by
consuming fast food. Why people want to consume it? What factors those motivate to
consume the fast food?

From the multiple regression analysis, researcher got the formula for this
research Purchasing Decision = 0.194X1+0.200X2+0.256X3+0.083X4+0.335X5. F test
result, with the F table (29.152) is higher than F computation (2.32) then all
independent factors has significant correlation toward dependent variable. T test
result, X1, X2, X3, X5 has significance correlation toward dependent variable(Y) and
X4 has not significance toward dependent variable (Y).

In this research, there are five independent variables (X) consist of 28


statements as the statement or indicator, which has 3 invalid statements and 25 valid
statements for conducting the research. From the data collection and processing via
SPSS Program, the researcher gets result for this research, the dominant factor that
affect people purchase decision is fifth factor, personality and self-concept (X5). as
already explained in the previous chapter, personality refers to the unique people
psychological charactersictics or their opinion or mindset that relatively consistent
and long lasting responde to one’s own condition. Self concept refers to people
possession then it can reflect their identities. With the personality, individual or
people wants to purchase and consume one brand or one product because they believe
with only that product or brand.
From the explanation above, the researcher concludes besides the dominant
factor that influenced people purchase decision, there are another external factors that
also influence people purchase decision. The adaptation ability for KFC Company to
adapt with Indonesian culture has an important role to get people attention for
consuming fast food, for example the addition menu of rice and Perkedel, it will
increase people interest for having meal in foreign fast food restaurants like KFC.
Besides adaption to the Indonesian culture, the bundling price for every menu that
KFC offers to customer is also important. With the affordable price, it also can
increase people interest for purchasing fast food menu.

5.2 Recommendation

From the conclusion, the researcher has several recommendations for object
study in increasing people purchase decision in purchasing or consuming fast food
KFC;

a) For factors or variables that has influence toward people purchase


decision(X1,X2,X3, and X5) KFC should maintain the strategy, plans, and
programs to keep the sales increase. As the result from this research, people
purchase decision dominantly affect by people personality and self-concept. KFC
should maintain and increase their product quality and service quality, so that
people can keep their personal reason to have fast food menu only in the KFC
than another fast food restaurants.

b) For factor or variable that has not influence toward people purchase
decision (X4), KFC should care about the lifestyle factor of Cikarang people. If it
possible, than the company can take study about learning people lifestyle in
Cikarang for increasing company sales. People’s lifestyle is different from one
place to another place; the strategy must be different for facing the different
lifestyle. For example, Cikarang people would like to hangout and have meal with
their children, to attract more customers, KFC can improve the playground area
for the customer’s children, and then the children like to play there while having
their meals.
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Perspective, First Lok Yang Road, Jurong Singapore, Pearson Prentice Hall.

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Angeles, Calif., Sage Publications, ISBN 1-4129-4163-6.

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http://www.edu.plymouth.ac.uk/resined/Quantitative/quanthme.htm
ANALYSIS OF PERSONAL FACTOR THAT AFFECTING
PEOPLE IN PURCHASING AND CONSUMING
AMERICAN FRIED CHICKEN FAST FOOD
(CASE STUDY IN KENTUCKY FRIED CHICKEN
LIPPO CIKARANG MALL)

By
Hengky Susanto
014200900071

A thesis presented to the


Faculty of Economics President University
in partial fulfillment of requirements for
Bachelor Degree of Economics Major in Management

President Univeristy
Cikarang Baru – Bekasi
Indonesia

January 2013
THESIS ADVISER
RECOMMENDATION LETTER

This thesis entitled “Analysis of Personal Factor that Affecting


People in Purchasing and Consuming American Fried Chicken Fast
Food (Case Study in Kentucky Fried Chicken Lippo Cikarang
Mall)”, prepared and submitted by Hengky Susanto in partial fulfillment
of the requirements for the degree of Bachelor in the Faculty of Economy
has been reviewed and found to have satisfied the requirements for a
thesis fit to be examined. I therefore recommend this thesis for oral
defense.

Cikarang, Indonesia, January 23, 2013.

Acknowledged by, Recommended by,

Irfan Habsjah, MBA. CMA Purwanto, ST, MM


Head of Management Thesis Advisor
Study program
PANEL OF EXAMINERS
APPROVAL SHEET

The Panel of Examiners declared that the thesis entitled “Analysis


of Personal Factor that Affecting People in Purchasing and
Consuming American Fried Chicken Fast Food (Case Study in
Kentucky Fried Chicken Lippo Cikarang Mall)” that was submitted
by Hengky Susanto majoring in International Business from the Faculty
of Economic was assessed and approved to have passed the oral
examinations on Tuesday, February 12th 2013.

Ir. Yunita Ismail, M.Si


Chair – Panel of Examiners

Irfan Habsjah, MBA. CMA


Examiner II

Purwanto, ST, MM
Examiner III
DECLARATIONOF ORIGINALITY

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


that Affecting People in Purchasing and Consuming American Fried
Chicken Fast Food (Case Study in Kentucky Fried Chicken Lippo
Cikarang Mall)” is, to the best of my knowledge and belief, an original
piece of work that has not been submitted, either in whole or in part, to
another university to obtain a degree.

Cikarang, Indonesia, January 23, 2013

Hengky Susanto
ABSTRACT

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


consumer behavior that affecting people in purchase and consume KFC. This research
case study is in KFC outlet in Lippo Cikarang Mall. This research shows that
consuming fast food or as known as junk food has risk of health disease. There are
five variables or factors in this research to be analyzed, and the dominant factors are
perosnalitirs (X5) and the weakest is Lifestyle (X4). This research using quantitative
research method and its conducted based on consumer behavior theory, focusing on
personal factor in consumer behavior characteristics and purchase decision. The data
were obtained by doing observation and distributing questioner to 93 respondents. For
processing the data from questionnaire, the researcher using SPSS (Statistic Product
and Service Solution) software version 16.0 with several test; validity test, reliability
test, F test, T test, multiple regression analysis. From the SPSS program multiple
regression result, X5 or personalities and self concept is the dominant factor
influencing purchase decision and X4 is non dominant or has no influence toward
purchase decision. The coefficient determinant (R Square) on this test is 62.6% means
that independent variables can describe dependent variable about 62.6%. F-Test in
this research show that independent variables simultaneously give influence to
dependent variable with significance level 0,00 and F value 29,2. For T-test result,
shows that independent variables or factor X1 (0.33), X2 (0.23), X3 (0.002), X5
(0.000) has influence partially because of the significance value below 0.05. For X4
(0.299) with the significance value above than 0.05, means X4 has not significance
influence toward purchase decision and for dominant factor in this research that
affecting dependent variable Y is X5 (Personality and Self-concept factor).

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


and Self-concept, Purchase decision
ACKNOWLEDGEMENT

Thank you Lord! Thank you Jesus! Thank you for the guiding, blessing while
writing this thesis then I can finish writing this thesis. Without your great blessing, I
can’t finish this thesis Lord! This thesis is to fulfill the requirements for finishing
bachelor degree in economic faculty of President University. I also want to say thank
you very much for;

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


in writing this thesis. Thank you for your pray and bless papa, mama.
b) My best friends Bram, Eko, Martin, Anthony, Bernard, Adit, Willy, Andre,
Sucing, Najib, Koji, Pao, Irene, and the others, thank you for the support
and with our hard work in doing this thesis, we all can finish this thesis.
You guys are the best.
c) Mr. Purwanto, as my thesis advisor. Thank you, Sir, for your great and
wonderful guidance that you give to me during writing this research. thank
you for your advices and other supports.
d) Thank you very much for Mrs. Maria Ulfah, as the manager of KFC outlet
in Lippo Cikarang Mall. Thank you mam, for your guidance and
permission for conducting this research in your outlet.

I realized this research is still has lacking and not perfect, I openly accept for
every comments and suggestions for make this research better. Last, I hope this
research will give benefits for those who needs.

Bekasi, 23 January 2013

Hengky Susanto
TABLE OF CONTENTS

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


PANEL OF EXAMINERS APPROVAL SHEET...................................................iii
DECLARATION OF ORIGINALITY.........................................................................iv
ABSTRACT...........................................................................................................................v
ACKNOWLEDGEMENT.................................................................................................vi
TABLE OF CONTENT.....................................................................................................vii
LIST OF TABLES..............................................................................................................x
LIST OF FIGURES.........................................................................................................xi
I. INTRODUCTION
1.1. Background of the Study…………………………………………………………1
1.2. Company Profile…………………………………………..……….…….………6
1.2.1 Products……………………………………………………………………7
1.2.2 Vision and Mission…………………………………………………………8
1.2.3 KFC in Lippo Cikarang Mall……………………………………………….8
1.3. Problem Identified…………………………………………………………...…10
1.4. Statement of Problem……………..……………………………………………11
1.5. Research Objectives……………………………………………………………12
1.6. Significance of Study…………………………………………………………..12
1.7. Theorythical Framework……………………………………………………….14
1.8. Scope and Limitation…………………………………………………………...15
1.9. Assumption and Hypothesis…...……………………………………………….15
1.10. Definition of Term…………………………………………………………… 17
1.11. Chapter outline………………………………………………………………..18
II. LITERATURE REVIEW
2.1. Consumer behavior ……………………………………………………………….19
2.2. Characteristics of consumer behavior ……………………………………………... 20
2.2.1 Cultural factor …………………………………………………………….21
2.2.2 Social factor……………………………………………………………... 22
2.2.3 Psychological factor ……………………………………………………...23
2.2.4 Personal factor…………………………………………………………… 24
2.3. Types of buying decision behavior ………………………………………………...26
2.4. Buyer decision process …………………………………………………………….28
III. RESEARCH METHODOLOGY
3.1. Research methodology ……………………………………………………………..30
3.2. Research framework ……………………………………………………………….31
3.3. Research time and place …………………………………………………………...32
3.4. Research instrument ………………………………………………………………..32
3.4.1 Survey…………………………………………………………………… 32
3.4.2 Questionnaire …………………………………………………………….33
3.4.3 Data analysis ……………………………………………………………...36
3.5 Sampling design ……………………………………………………………………36
3.6 Statistical instruments ………………………………………………………………37
3.6.1 Validity …………………………………………………………………..38
3.6.2 Reliability ………………………………………………………………...40
3.6.3 Mean score and Overall mean score ……………………………………....42
3.6.4 Data classic assumption………………………………………………….. 44
3.6.5 Descriptive analysis……………………………………………………… 45
3.6.6 Multiple regression ……………………………………………………….45
3.6.7 Hyphothesis test ………………………………………………………….46
3.6.8 Coefficient Correlation (r) and Determination (r2)……………...………47
IV. ANALYSIS OF DATA AND INTERPRETATION OF RESULTS
4.1 Descriptive analysis ………………………………………………………………...49
4.1.1 Data Collection …………………………………………….……………..49
4.1.2 Charateristics of respondents ……………………………………………..49
4.1.3 Mean score and Overall means score analysis…………………………… 53
4.1.4 Statistical descriptive ……………………………………………………..57
4.1.5 Data classic assumption ………………………………………..…………58
4.2 Multiple Regression Analysis ………………………………………………………61
4.3 Interpretation of result 65
V. CONCLUSION AND RECOMMENDATION
5.1 Conclusion.........................................................................................................................69
5.2 Recommendation..............................................................................................................70
LIST OF REFERENCES …………………………………………………………….71
APPENDICES ………………………………………………………………………...73
LIST OF TABELS

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


Table 3.2 Pre-questionnaire …………………………………………………...…….35
Table 3.3 Result of validity and reliability test ……………………………………...39
Table 3.4 Valid statements…………………………………………………………..40
Table 3.5 Reliability test result …………………………………………………...…41
Table 3.6 Correlation coefficients ………………………………………………..…48
Table 4.1 Ms & Oms Age and Life cycle ………………………………...…………54
Table 4.2 Ms & Oms Occupation ………………………………………...…………54
Table 4.3 Ms & Oms Economic Condition ………………………………...……….55
Table 4.4 Ms & Oms Lifestyle ……………………………………………...………55
Table 4.5 Ms & Oms Personality and self concept ……………………………...….56
Table 4.6 Ms & Oms Purchase decision ………………………………………...….56
Table 4.7 Descriptive statistics ………………………………………………..……57
Table 4.8 Result of Colinearity test ……………………………………………..….59
Table 4.9 Result of DW test ……………………………………………………..…59
Table 4.10 Result of Multiple Regression test (Coefficients) …………………..….62
Table 4.11 Result of Multiple Regression test (ANOVA) ……………………..…..64
Table 4.10 Result of Multiple Regression test (Model Summary) ……………..…..65
LIST OF FIGURES

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


Figure 1.2 Total of KFC sales Indonesia …………………………………………….4
Figure 1.3 Top brands 2012 ………………………………………………………….5
Figure 1.4 Total sales of KFC outlet in Lippo Cikarang Mall ……………………….9
Figure 1.5 Total customers of KFC outlet in Lippo Cikarang Mall ………………….9
Figure 1.6 Theoretical framework …………………………………………………..14
Figure 2.1 Consumer behavior ……………………………………………………...21
Figure 2.2 Maslows hierarchy of needs ……………………………………………..23
Figure 2.3 Four types of buyer decision behavior …………………………………..26
Figure 2.4 Five steps of buyer decision process …………………………………….28
Figure 3.1 Research framework …………………………………………………….31
Figure 4.1 Gender Distribution chart ……………………………………………….49
Figure 4.2 Age Distribution chart …………………………………………………..50
Figure 4.3 Education background Distribution chart ……………………………….51
Figure 4.4 Occupation Distribution chart …………………………………………..52
Figure 4.5 Monthly income Distribution chart ……………………………………..52
Figure 4.6 Respondents awareness of fast food risk distribution chart ……………..53
Figure 4.7 Normality test P. Plot ……………………………………………………60
Figure 4.8 Histogram normality test ………………………………………………...60
Figure 4.9 Result of heteroscedasticity test …………………………………………61
CHAPTER I
INTRODUCTION

1.1 Background of Study

In this modern era, where the globalization in every sector of business and
modernization in every sector in our lives, make our lives become more complex than
before. In Indonesia the developing country where many foreign or local investor
invest their business to be run in our country, as the result we can see many foreign
companies that run their business in Indonesia. With the total population of two
hundred fifty nine million nine hundred forty thousand eight hundred fifty seven
(259.940.857) on last December 2010, Indonesia has a good potential in developing
business.

The good economic progress also encourage people to just not fulfill they
basic need or primary, but their need also for the secondary need like lifestyle, and the
worst is lifestyle can encourage people to become more consumptive. Lifestyle
according to Kotler, 2011 is person’s pattern of living. Lifestyle change people living
behavior. People eat out home, go to fast food restaurant in late night, take a chit-chat
with their mates late night in coffee café are the examples of lifestyle in nowadays.

Indonesia is a country with the big population, what is the most important of
people need? People needs a food as their basic need for Physiological (Mashlow
hierarchy of need, 2006), then food is become one of their primary needs. A
traditional list of immediate "basic needs" is food (including water), shelter, and
clothing. Thus, the culinary business is the appropriate business to be developed. In
fact, there are so many restaurants business with the local or foreign food.

As the globalization consequences, foreign investor or foreign business comes


to Indonesia. The investor can market their business with the franchising their
business so the business can be spread to every area or place. According to Mitchell,
2012,“Franchising is a business model in which many different owners share a single
brand name. A parent company allows entrepreneurs to use the company's strategies
and trademarks; in exchange, the franchisee pays an initial fee and royalties based on
revenues”. Nowadays franchise business is developing, we can see there are so many
same brands of business spread in many places. With the high need of money as the
capital, franchise takes less work to get started, because the franchiser provides
anything the franchisee needs (Nembhard, 2011).

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


including the cooking process to produced the primary needs of people, food. It can
make easier the processing the raw material or even to cook, for producing foods is no
longer time needed, no more workers required and more simple to cook. Nowadays
available also, there are freeze foods, or preheated foods which the easiest way to
consume, just heat the freeze foods.

Through the big population, developing of the culinary business with


franchising and advances if technologies, then exist the fast food restaurant business
with the franchising model. There are so many types of fast food in Indonesia, the
well-known fast food are American fast food restaurants, Japanese fast food
restaurants and Indonesian fast food restaurants. The American fast food restaurants
has many outlets, especially in the big city, it spreads in every mall or shopping
centre. “Fast food is the term given to food that can be prepared and served very
quickly, typically the term refers to food sold in a restaurant or store with preheated or
precooked ingredients, and served to the customer in a packaged form for take-
out/take-away: (Merriam–Webster dictionary).

The foreign fast food, with the adaption to Indonesian cultures, they provide
what Indonesian people like to eat, so they just not provide their original foods. We
can find many variety of fast food when we go to the mall in big cities then go to the
food court area; there are so many fast food restaurants with many people takes their
meal there. The short time for prepare the foods, easy to eat, good taste of the foods,
and affordable food price for specific foods, fast food becoming first choice for
people in big city who has limited time for lunch break and eats, since their time is for
working in all days. Teens, adults, child, or old people loves to eat this fast food,
sometimes they eat with the whole family in the restaurants, or have delivery services
to their home this kind of activities is part of modern lifestyle.
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.

Sales in Billion (in $ USD) 8,920


8,554
8,230
7,830
7,394

2007 2008 2009 2010 2011

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

Source: Yum! Brands 2011 Financial report

The graphic above explain the increasing of total KFC international sales, it
shows the total sales of KFC worldwide including KFC in Indonesia. The increasing
of total sales from 2007 until 2011 show us that fast food industry have a good
potential in year to year. In 2007, KFC international got $7,394 billion, in 2008 KFC
international got $7,840 billion, in 2009 KFC international got $8,230 billion, in 2010
KFC international got $8,554 billion, and in 2011 KFC got $8,920 billion for total
sales.

Seeing this big opportunities to develop the fast food restaurants, to fulfill
what the people in big cities need, then Kentucky Fried Chicken the American fast
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

2007 2008 2009 2010 2011

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

Source: PT. Fast Indonesia Tbk. Financial Report 2011

The graphic above explains the sales of KFC in Indonesia increasing from
2007 until 2011. KFC Indonesia has the total of 403 outlets and KFC gets 3.3
quintillion rupiah in 2011 increasing from 2010 just 2.9 quintillion rupiah
(Neraca.co.id, 2012). This increasing sale indicates that Indonesian people have great
interest in purchasing and consuming fast food.
From the Top Brands survey in Indonesia for 2012, Kentucky Fried chicken is
still becomes the top brand of fast food restaurants with the indexing rate of 61.9%
and for the second place is Mc Donald’s with 20.1% of index rate. This Top Brand
2012 survey held in 8 cities: Bandung, Jakarta, Makassar, Medan, Semarang,
Surabaya, Balikpapan, and Pekanbaru. The random samples in each city are 400
persons. The total number of random respondents surveyed is 3250, and the total
number of booster respondents is 850. This survey informs us which brands are
known very well for Indonesian people. Here is the result of Top Brand survey 2012;

Figure 1.3: The Result of Top Brand 2012, category in Retail business of
Fast Food Restaurants.

Source: Top Brand 2012 survey

The result from the survey above explains how Indonesian people still take
KFC as the top of brand in fast food restaurants. KFC Indonesia with the many of
outlets that KFC Indonesia has, we can find it easily everywhere. Even in every big
city and place or areas that have so many people, there will be outlets for KFC. People
can consume this fast food with the many varieties of products whenever they want,
the consumer also can freely consume the products, almost all people with the
different ages and economic condition can consume fast food. But nowadays, for
eating in the fast food restaurants like KFC is not a special thing, it becomes a modern
lifestyle when the family especially the mother doesn’t need to cook and prepared
foods, they just come to the outlets then order the food, eat there with the husband and
their children.
Another reasons that people to consume fast food is the lack of time that
people get in daily works, people usually do anything in an expressway to fulfill what
they need. Working from the morning until afternoon then at night makes people do
not have time to prepare their food then they just go to American fast food like KFC.
Fast food becomes the solution of people who do not have enough time for prepare
their foods. With the 24 hour delivery services (for some outlets), people have their
decision to consuming fast food. With the good economic background, the higher
price when consuming fast food it will not become a matter. People also do not take
attention with the low nutrients ingredients, what they want is just the delicious taste
that can fulfill their hunger. In short, there are many disadvantages for consuming fast
food but people still oftenly consume it.

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


theory by Kotler and Armstrong. Consumer behavior when they decide to buy or
purchase something of they want, is based on the several factor that affect the
consumer for purchase it. There are cultural factor, social factor, personal factor, and
psychological factor. This research is taken for personal factor, then personal factor
consist of several factors such as age, occupation, economic situation, lifestyle,
personality and self-concept. In this research, the researcher is to analyze of personal
factor that motivate people toward to their purchase decision in purchasing and
consuming American fast food Kentucky Fried Chicken (KFC).

1.2 Company Profile

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


Gelael Family founded PT Fast Food Indonesia Tbk., in 1978. In 1979, the company
opens the first KFC fast food restaurant outlet in October at Melawai Street in Jakarta.
With the entry of Salim Group in 1990 as one of the major shareholders, Company's
expansion initiatives were reinforced and in 1993, the Company became publicly
listed in Indonesia Stock Exchange to further enhance the development growth. The
present majority shareholding of 80% is distributed 43.84% to PT Gelael Pratama,
owned by the Gelael Group and 35.84% to PT Megah Eraraharja, a company under
the Salim Group; while the Public and Cooperatives share the minority (20%)
PT. Fast Food Indonesia Tbk., was given the license to use KFC brand by its
present franchisor, Yum! Asia Franchise Pte Ltd, which is part of Yum! Restaurants
International (YRI). YRI itself is a company under Yum! Brands Inc, a publicly-listed
company in the U.S. and the franchise owner of four other well-known brands, i.e.
Pizza Hut, Taco Bell, A&W, and Long John Silvers.

The first outlet has successful business and it start the way for the opening of
more additional outlets in Jakarta. Also, the outlets expansion to every regional
coverage including other major cities in Indonesia, like Bandung, Semarang,
Surabaya, Medan, Makassar, and Manado. By the many outlets that KFC opens, it
makes KFC become dominant brand in fast food franchise business in Indonesia.
Now KFC has 425 outlets of restaurants to serve Indonesian people in 95 cities in
Indonesia.

1.2.1 Products

KFC has main products in fried chicken, Colonel's Original Recipe and Hot &
Crispy Chicken. KFC products grouped into several categories as Menu Goceng,
Menu Praktis, and package meals. Menu Goceng category, which means are all the
menu items price at Rp5,000 each and not including tax. There are more than 10
menu items providing real value and the most “sell well” items are Mocha Float and
OR Burger Deluxe. To add variety to this Goceng menu category, menu selections
were changed due the changing preferential taste of customers.

On the other hand, Menu Praktis category includes menu items that are easy to
take away and can be consume easily, like Colonel Burger, Twister, Colonel
Yakiniku, etc.

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


combinations) and value meals, like Super Panas and KFC Attack are continuously
offered. Supplementing these core menu items are products catering to local market
taste, like Potato Croquette (Perkedel), Rice (Indonesian staple food), Salad, and KFC
Soup. KFC also offers various choices of beverages such as soda or non-soda drinks.

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


of service in all free-standing outlets, means the outlets has independent building not
joining another mall or other building. KFC restaurant outlets by providing a wide
range of quality coffee menu items, hot and cold, served in a separate counter with
designated seating for coffee lovers. To attract customers during lean day-part of
operation, the Company also has Krushers beverage menu item with a wide choice of
flavors.

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

Vision:

Maintain KFC’s market leadership and always be the No. 1 brand in the
QSR(Quick Service Restaurants) business in Indonesia by being the most modern
and favorite restaurant in terms of product, value, service, and assets.

Mission:

Strengthening KFC brand image through innovative strategies and ideas,


improving customers’ dining experience by continuously and consistently providing
quality products, services, and assets suited to customers’ changing needs and taste.

1.2.3 KFC in Lippo Cikarang Mall Profiles

This research conducts in scope of KFC Mall Lippo Cikarang, the outlet in
Lippo Cikarang Mall was established on 10th June 1995. The KFC outlet in Lippo
CIkarang Mall has three main services of sales, first there is mother store or main
store in the first floor and in second floor KFC has a small kiosk to serve another
customer, and the last there are home delivery service. The manager of KFC outlet in
Lippo Cikarang Mall is Mrs. Maria Ulfah, with the assistant manager with Mr.
Wasyanto. There are also three shift leaders Mrs. Ameliana, Mr. Teodorus Seru, and
Mr. Ahmad Suseno. In this October, KFC outlet in Lippo Cikarang Mall has 42
people of employees including in mother store, kiosk and home delivery.

These graphics explain the total sales and total customers of KFC outlet in
Lippo Cikarang Mall period of January until October 2012.
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

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


Period January – October 2012
Source: KFC Lippo Cikarang Mall outlet data.

30000

23870
25000
20313
20000 19448
20444 20978 21089 20910
e 20866 19205
lp 18072
o 15000
e
P
10000

5000

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


Period January – October 2012
Source: KFC Lippo Cikarang Mall outlet data.
1.3 Problem Identified

Based from the explanation above, consuming fast food as the part of modern
lifestyle for many people who are busy with their activities and have no time to
prepare foods, so they just take fast food to eat and don’t realize how harmful fast
food for our body. As we know those varieties of fast food are well known as a junk
food. Junk food refers to fast foods which are easy to make and easy to consume, zero
in nutrition value, have only high fat to cause an illness (dietpolicy.com, 2012).

Salted snack foods, candy, gum, most sweet desserts, fried fast food and
carbonated beverages are some of the major junk foods. Fast food that we often to eat
like fried chicken, or another pre heated food, also another drinks with zero nutrition
but has high level of sugar or another chemical ingredient such as coloring and taste
maker can called as a junk food. Comparing the advantages of fast food is faster serve
time and cheap price of food than the disadvantages is more dangerous and harmful
for our body. The problem occurs when consuming fast food is health desease and
monetary problem for several people.

It is become the fact when consuming fast food, it will increase the illness or
diseases risk caused by fast food. The most common disease or serious health problem
are overweight or obesity, diabetic and high cholesterol level to have heart and liver
illness (WHO.int, 2012). Overweight or obesity are both labels for ranges of weight
that are greater than what is generally considered healthy for a given height.

“Overweight and obesity are the fifth leading risk for global deaths. At least
2.8 million adults die each year as a result of being overweight or obese. In addition,
44% of the diabetes burden, 23% of the ischemic heart disease burden and between
7% and 41% of certain cancer burdens are attributable to overweight and obesity”.
Overweight also closely related with high level of fat or cholesterol then it can cause
the possibility of coronary heart disease because the accumulation of plaque of
cholesterol or fat in blood vessel.
Diabetic caused by consuming fast food with high level of sugar (WHO.int,
2012). When consuming fast food usually people have their dessert with another
sweet food or drinks. This sweet food or drinks have high sugar level that potential
causing diabetic disease. This high level of sugar also affects to the obesity disease.
Diabetes increases the risk of heart disease and stroke. 50% of people with diabetes
die of cardiovascular disease.

The dangerous health risk caused by consuming fast food, there are still many
people like to consume it and makes it to become as part of their modern style. People
for sure know the consequence of consuming junk food, but they do not pay attention
to that harmful risk.

When they purchase or buy the product, several factors affected the consumer
behavior; there are cultural factor, social factor, personal factor, and psychological
factor. In this research, researcher takes the personal factor with age and lifecycle,
occupation, lifestyle, personality as the factors. The problem is to find the dominant
factor based on the personal factor that motivates people to consume American fast
food Kentucky Fried Chicken and from the personal factors, researchers want to find
any correlation between the factors and consumer decision to consume fast food.

1.4 Statement of Problem

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


problem for this study is:

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


personalities) affect the people motivation toward to people purchase
decision in purchasing and consuming fast food?
b) What is the dominant factor or variable toward to people purchase decision
in purchasing and consuming fast food in the following factors of personal:
Age, occupation, economic situation, lifestyle and personalities?
1.5 Research Objectives

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


motivation Age, occupation, economic situation, lifestyle and personalities
that affect people purchase decision in purchasing or consuming fastfood.
b) To identify the dominant factor or variable that motivates people for
consuming fast food.

1.6 Significance of Study

a. Theoritical Significance

For develop the science study, especially for the economics field study,
this research is conduct. In addition, the researcher hopes this research can
give the contribution and can be used as the reference for the consumer
behavior study and the development of fast food business, so that the fast
food business investors can know more about consumer behavior
especially for the personal factor.

b. Practical Significance

For PT. Fast Food Indonesia Tbk., as the holder of KFC franchising in
Indonesia
To contribute the additional information about the consumber behavior
especially on the personal factor that motivate people to comsume this
American fast food. Based on the result of this research, they can make
new program or another strategies in market their products so the
consumer will purchase or consume more.
c. Academic Significance

For President University campus students or communities


This research can be references for continue studying about consumer
behavior and also can provide any information needed for knowing more
about American fast food Kentucky Fried Chicken.
1.7 Theoretical Framework

Characteristics of Consumer Behavior

Cultural

- Culture
- Sub Culture
- Social Class

Social

- Reference groups
- Family
- Roles and status

Personal

- Age and Life cycle (X1)


- Occupation(X2)
- Economic situation(X3) Purchase Decision (y)
- Life style(X4)
- Personalities and self
concept (X5)

Psychological

- Motivation
- Perception
- Learning
- Belief and attitudes

Figure 1.6 Theoretical Framework

Kotler and Armstrong, 2008


1.8 Scope and Limitation

Based on the aim of the research is that the researcher wants to know, what is
the dominant factor from the personal factor on consumer behavior, that motivate
people to consume American fast food Kentucky Fried Chicken KFC. The researcher
choose KFC, because it is the one of many culinary business industry that serve
American type fast food specially for fried chicken also, the modern lifestyle
nowadays, take people to consume fast food than cooking for their food. This research
is conduct as a case study for KFC outlet in Lippo Cikarang Mall. The researcher
chooses outlets in Cikarang, is for the affordable place to take the research and this
outlet have many customer that consist of young, adults, and old ages people.
Consumer behavior affected from several factors; social, cultural, personal, and
psychological factor, the researcher limited the scope of the research is just on the
personal factor.

There are many factors from characteristics of consumer that affect person to
consume or decide purchasing goods, the researcher chooses personal factor in
consumer behavior that motivate people to consume the American fast food because
the factors in personal such as age, occupation, economic situation, lifestyle and
personalities are the most interesting factor to be researched. Age are the factor that
influenced person to buy some products, because the maturity level in thinking
influenced person to purchase and consume the products, people also nowadays think
how to adjust what kind of goods that they purchase and consume based on their
occupation and economic situation. To consume or purchase the non-cheap goods,
they must think about their economic situation in condition of manage their outcome
to be lower than their income. Lifestyle and personalities also influenced how they
lives in this modern era, so it will affect what products or brands that they purchase.

1.9 Assumptions and Hypothesis

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


the researcher take the hypothesis as the follow:
Null Hypothesis (Ho1): Age & Life Cycle factor has no influence toward to people
purchase decision in purchasing and consuming fast food.
Alternate Hypothesis (Ha1): Age & Life Cycle factor has influence toward to people
purchase decision in purchasing and consuming fast food.

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


purchase decision in purchasing and consuming fast food.
Alternate Hypothesis (Ha2): Occupation factor has influence toward to people
purchase decision in purchasing and consuming fast food.

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


purchase decision in purchasing and consuming fast food.
Alternate Hypothesis (Ha5): Personalities 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.

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


but the prior caused by the fast food. By consuming a high calories
level and low nutrition level of food. Obese identical with other serious
diseases, such as high cholesterol level and heart disease.

Diabetic A disease that can be caused by consuming fast food, another side
dishes or beverages that contains high level of sugar. Majority people
get diabetic types – 2, it caused by negative or poor lifestyle that
people have.
1.11 Chapter Outline

Chapter I Introduction

This chapter consists of background of study, Kentucky Fried Chicken


Indonesia company profiles, problem identified, statement of problem,
research objectives, significance of study, theoretical framework, scope
limitations, assumption and hypothesis, definition of term and last, chapter
outline.

Chapter II Literature Review

This chapter consists of consumer behavior theory, characteristics of consumer


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

Chapter III Research Methodology

This chapter consists of research methodology theory, research framework,


research time and place, research instruments, sampling design, descriptive
analysis, statistical instruments.

Chapter IV Analysis of Data and Interpretation of Result

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


interpretation of result. Descriptive analysis consist of several descriptive
result such as characteristics of respondents, mean score and overall mean
score analysis, statistical descriptive and classic data assumption.

Chapter V Conclusion and Recommendation

This chapter consists of conclusion and several recommendations for


theoretical, practical and academicals significance.
CHAPTER II
LITERATURE REVIEW

2.1 Consumer Behavior


According to Kuester, Sabine (2012,p110) “Consumer behaviour is the study
of individuals, groups, or organizations and the processes they use to select, secure,
and dispose of products, services, experiences, or ideas to satisfy needs and the
impacts that these processes have on the consumer and society”.

The definition of consumer buyer behavior according Kotler & Armstromg


(2008, p122); “Consumer buyer behavior refers to the buying behavior of final
consumers – individuals and households who buy goods and services for personal
consumption”.

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


“Consumer behavior is defined in many ways but it can be accepted as 'the behavior
that consumers display in searching for, purchasing, using, evaluating and disposing
of products and services that they expect will satisfy their needs”.

This consumer behavior from the definitions above, can be explained also as
study for a process of how consumer or people have their decision to select, purchase,
or consuming goods or services based on their needs and get the satisfaction from the
purchasing decision. According to Peter, J. Paul 2005; consumer behaviors involves
the thoughs and feelings people experience and actions they performed in
consumption processes, it also includes all the things in the environment that
influences thouthgt, feelings and actions”

Not all people will buy the same products; they have their own thinking
before deciding to purchasing goods or services. Consumer behavior refers to the
selection, purchase and consumption of goods and services for the satisfaction of their
wants. There are different processes involved in the consumer behavior. Initially the
consumer tries to find what commodities they would like to consume, then they
selected any goods or services that they think is the best. After selecting the products,
the consumer makes an estimate of the available money that they can spend.
Lastly, the consumer analyzes the prevailing prices of commodities and takes
the decision about the goods that they will purchase. The all consumers combine into
consumer market, the definition of consumer market according principles of
marketing a global perspective book is “all the individuals and households who buy or
acquire goods and services for personal consumptions.”

Consumer behavior deals with why people want to buy and why people do not
want to buy the products. Consumer purchases are influenced by the characteristic of
the consumer behavior such as cultural factor, social factor, personal factor, and
psychological factor.

2.2 Characteristics of Consumer Behavior


There are five characteristics of consumer behavior, which influence strongly
people buying decision process according to Kotler and Armstrong, 2008. There are;

a. Cultural factor
b. Social Factor
c. Personal Factor
d. Psychological Factor
Characteristics of consumer behavior

Cultural Social Personal Psychological

• Culture • Reference • Age and Life • Motivation


groups cycle • Perception
• Occupation
• Sub • Family • Learning
• Economic
Culture • Roles and situation • Belief and
status • Life style attitudes
• Social • Personalities and
Class self concept

Purchase Decision

Figure 2.1 Factors Influencing Consumer Behavior


Source: Kotler and Armstrong, 2008

2.2.1 Cultural Factors

Cultural factors have strong influence to consumer behavior. According to Kotler and
Armstrong, 2008, there are three factors inside cultural factors; culture, subculture,
and social class.

a. Culture

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


learned by a member of society from family and other important institution.
This culture must be learned in order to know the consumer behavior. The
influence of culture on buying behavior varies from country to country.
b. Subculture

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


shared value system based on common life experience and situations. Subculture
includes nationalities, religions, racial groups, and geographic regions.

c. Social Class

Every society has a social class structure. Social classes are society’s relatively
permanent and ordered divisions in a society whose members share similar
values, interests, and behaviors. Social class not only determined from single
factor such as income, but also measured combination of occupation, income,
education, wealth, and other variables.

2.2.2 Social Factors

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


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

a. Reference Group

Grioups that have direct influence and to which a person belongs are called
membership group, membership group serve as direct or indirect points of comparison
or reference in forming a person attitudes and behavior. When a person decides to buy
a product, reference of groups gives recommendation and influence that person mind
to buy or do not buy the products, so it will affect the consumer behavior.

b. Family

Family members can strongly influence buyer behavior. The family is the
most important consumer buying organization in society. The members of the family
can give influence when the person in the family wants to purchase some products or
services.
c. Roles and status

People usually choose the products appropriate to their roles and status. For example,
person in the family is a father, and in the organization is a vice president, then in
company he will buy clothes that reflects his role and status in the organization as the
vice president.

2.2.3 Psychological Factors

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


factors that influence the consumer behavior for buying decision, there are
motivation, perception, learning, and belief and attitudes.

a. Motivation

The level of motivation also affects the buying behavior of customers. Every
person has different needs such as physiological needs, biological needs, social needs
etc. Therefore, a need becomes a motive when it is more pressing to direct the person
to seek satisfaction. Motive is a need that is sufficiently pressing to direct the person
to seek satisfaction of the need.

Another theory for human need, by Maslow from the book “essential
management” by Harold Koontz & Heinz Weihrich. (2006). Abraham Maslow
explained the hierarchy of needs why people driven by particular of needs at
particular times. From the most pressing at the bottom to the last pressing at the top.

Figure 2.2 Maslow’s Hierarchy of Needs

Source: Harold Koontz & Heinz Weihrich. (2006)


b. Perception

Perception is the process of people selecting, organizing and interpreting


information in a way to produce a meaningful picture of theworld. Three different
perceptual processes are selective attention, selective distortion and selective
retention.

c. Learning

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


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

d. Belief and attitudes

Customer possesses specific belief and attitude towards various products. Beliefs and
attitudes make up brand image and affect consumer buying behavior. Belief is a
descriptive thought a person has about something, may be based on the
knowledge,opinion, or faith and may or may not carry an emotional charge. Attitudes
describes a person relatively consistent evaluations, feelings, and tendencies toward
object or idea.

2.2.4 Personal factors

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


personal characteristics such as the buyer age and life cycle stage, occupation,
economic situation, life style, and personality and concept. This research concern
about personal factors and here is the theory of consumer buying behavior based on
personal factor.

a. Age and Life Cycle Stage

People change the goods and services that they buy over the lifetimes. Taste in food,
clothes, furniture, and recreation are often age related. There will be different from
young age person taste to old age person taste, this different based on the age. Life
cycle stage for example from the single, married, have a family, unmarried, or another
cycle stage will affect the consumer behavior.
There are five segments of life age;the youth segment includes customer younger than
18. Getting started consists customer aged 18 to 35, who are going through first
experience in their lifes for example graduated, first job, first marriage. Builders
customer aged 35 to 50 are in the peak of earnings years. Accumulators aged 50 to 60
worry about saving for retirement and wisely investing. The last is preservers,
customer aged above 60 want to maximize their retirement income to maintain a
desired style.

b. Occupation

A person occupation affects the good or services that people bought and the
occupation of a person has significant impact on his buying behavior. For example the
white collar who works in a company as the manager, they will buy clothes that suit
for their occupation, not the informal but formal clothes and another example a
marketing manager of an organization will try to purchase business suits, whereas a
low level worker in the same organization will purchase rugged work clothes.

c. Economic Condition

Consumer economic situation has great influence on his buying behavior. If the
income and savings of a customer is high then he will purchase products that are more
expensive. On the other hand, a person with low income and savings will purchase
inexpensive products. Marketers of income sensitive goods watch trends in personal
income, savings, and interest rates. The economic condition of personal and the
current economic issue will affect customer’s decision before buying goods and
services. The personal economic condition of the cardholders cover; spendable
income, savings and assets, debts, borrowing power, and also attitudes toward
spending and saving.

d. Lifestyle

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


also can determined as a person pattern of living as expressed in their Activities,
Interest, and Opinion. People who are coming from same culture, or subculture, social
class, occupation may have different lifestyle. It involves measuring consumer’s
major AIO dimensions. Activities such as work, hobbies, shopping, sports, and social
events, Interest such as food, fashion, family, and recreation, Opinions such as about
themselves, social issue, business, and products. Lifestyle capture more than the
person’s social class or personality and it profiles a person pattern of acting and
interacting in the world.

e. Personality and Self Concept

Each person’s distinct personality influences his or her buying behavior. Personality
refers to the unique psychological characteristics that lead to relatively consistent and
lasting response to one’s own environment. Personality changes from person to
person, time to time and place to place. Therefore it can greatly influence the buying
behavior of customers. Actually, Personality is not what one wears; rather it is the
totality of behavior of a man in different circumstances. It has different characteristics
such as: dominance, aggressiveness, self-confidence etc which can be useful to
determine the consumer behavior for particular product or service. Many marketers
use a concept related ro personality, a person self-concept also called as self image.
The basic self concept premise is that people possessions contribute to and reflect
their identities.

2.3 Types of Buying decision Behavior

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


Marketing; Text and Case, (2012) proposed four types of decision making behavior
depending upon of buyer involvement and perceived differentiation among brands.
The four types are complex buying, dissonance reducing, variety seeking and habitual
buying behavior.

High Involvement Low involvement

Significant differences Complex buying Variety seeking


between brands behavior behavior

Few differences between Dissonance reducing Habitual buying


brands buying behavior behavior

Figure 2.3; Four types of buying decision behavior


Source; Henry Assael theory, by Harsh V. Verma 2012.
a. Complex Buying Behavior

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


consumer in situations characterized by high consumer involvement in a purchase and
significant perceived differences among brands. According to Harsh V. Verma 2012,
this mode called as complex because of the full length of the process and high rigor
involved. There are three step sequence of complex buying behavior, first developing
belief about the product, then attitudes, and then making a thoughtful purchase choice.

b. Dissonance-Reducing Buying Behavior

Dissonance reducing behavior occurs when consumers are highly involved


with an expensive, infrequent, or risky purchase, but see little difference among
brands. After the purchase, consumer will experience post purchase dissonance. The
customer may experience dissonance after the purchase because of unmet
expectations or hearing good about unchosen alternatives products. Unlike complex
buying, where recognition and affect develop before purchase, it occurs at post-
purchase stage in dissonance reducing behavior.

c. Habitual Buying Behavior

Consumer buying behavior in situation characterized by low consumer


involvement and few significant perceived brand differences. According to Harsh V.
Verma 2012, habitual buying signifies a situation when the decision-making is
replaced by habit. Habit is kind of behavior where little or no cognitive activity is
involved. Consumer appear to have low involvement with most low cost, frequently
purchased products.

d. Variety Seeking Buying Behavior

Consumer undertakes variety seeking buying behavior in situation


characterized by low consumer involvement but significant perceived brand
differences. For example, consumers often do a lot of brand switching, from one
product then another product because of during the consumption they didn’t get any
satisfaction, or simply to try something different. Brand switching occurs for the sake
of variety rather than because of dissatisfaction. This situation combines significant
perceived differences among brands with low customer involvement or lower buying
significance.

2.4 Buyer Decision Process


According to Kotler and Armstrong 2008, people in decide to purchase the
products there are five stage in buyer decision. There are; need recognition,
information search, evaluation of alternatives, purchase decision, and post purchase
behavior.

Need Recognition

Information Search

Evaluation of alternatives

Purchase decision

Postpurchase behavior

Figure 2.4; Five steps in buyer decision process


Source: Philip Kotler & Gary Armstrong (2008).

1. Need recognition

In this first step, person or consumer realize and discover the needed. The
buying process starts with need recognition in other word, buyer recognizers a
problem or need. the need can be started by internal stimuli when one of the person’s
normal needs for example hunger, thirst to a level high enough to become drive and
for the external stimuli for example, if one of the person thinking about buying car
after they discussed with another people.

2. Information search

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


product. The stage of information search is the stage of buyer decision process in
which the consumer is aroused to search for more information; the consumer may
simply heightened attention or may go into active information search. Consumers can
obtain information from any of several sources that include personal sources,
commercial sources, public sources and experiential sources. Personal sources such as
family, friends, neighbors, and acquaintances. Commercial sources such as
advertising, websites, dealers, packing, and display. Public sources such as mass
media, consumer rating organization, internet searches. Experiental sources for
example handling and examining for using the products.

3. Evaluation of Alternatives

Consumer makes final judgment through comparing the alternatives. Evaluation of


alternatives is the stage of the buyer decision process in which the consumer uses
information to evaluate brands in the choice set.

4. Purchase Decision

After the evaluation, consumer ranks brands and forms purchase intention. Consumer
may form an intention to buy the most preferred brand or the buyer’s decision about
which brand to purchase. In purchase decision, there are two factors between purchase
intention and purchase decision. First is an attitude of others, other people that
important to the customer could change the decision of purchasing one product. the
second factor is an unexpected situational factors, the consumer may form a purchase
intention based on expected income, expected prize, and product benefits or an
unexpected events may change the purchase decision.

5. Post purchase behavior

The stage of the buyer decision process in which the consumers takes further
action after purchase, based on the satisfaction or dissatisfaction of the products that
they purchase. The consumer can be categorized to satisfied or dissatisfied after a
purchasing from the relationship between the consumers expectation and products
perceived performance. If the product falls from customer’s expectation, it will make
the customer disappointed. If it meets expectation then the customer is satisfied, if it
exceeds expectation then the consumer is delighted.
CHAPTER III

RESEARCH METHODOLOGY

3.1 Research Methodology


Research methodology according to Merriam Webster dictionary is the
analysis of the principles of methods, rules, and postulates employed by a discipline
in the research, research methodology also applied as the systematic study of methods
that are, can be, or have been applied within a discipline in the research. In the
research, there are two majors research methodology; qualitative and quantitative
analysis. In this research, the researcher use quantitative analysis method for the
method of research. According to Given & Lisa M., 2008, quantitative research is
“Quantitative research refers to the systematic empirical investigation of social
phenomena via statistical, mathematical or computational techniques. Quantitative
data is any data that is in numerical form such as statistics, percentages, etc.”

Measurement and statistics are central to quantitative research because they


are the connections between empirical observation and mathematical expression of
relations. Quantitative researcher concerned with the development and testing
hypotheses and the generation of models and theories that explain behavior (Wayne
K. Hoy, p1, 2009).

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


collecting data that is numerically based and amenable to such analytical methods as
statistical correlations, often in relation to hypothesis testing”.

The researcher uses quantitative method because it provides the fundamental


connection between empirical observation and mathematical expression of
quantitative relationships. Quantitative research methods were originally developed in
the natural sciences to study natural phenomena (Hohmann U., 2006).
3.2 Research Framework
Research framework consist of the process of the research that researchers takes,
the figure below explains the steps or process in conducting this research.

Statement of Problem

Literature Review

Survey

Pre-Questionnaire

No
Validity and Reliability Test

Processing Data, Valid and Reliable?

Yes

Final Questionnaire

Data Transformation and Processing Data Using Ms. Excel


2003

Analyzing Data Using SPSS


Program, Ver. 16.0

Conclusion

Figure 3.1 Research Framework


Source: Construct by researcher
3.3 Research Time and Place

The research was conducted in Lippo Cikarang Mall, the respondents are
people who are purchasing and consuming American fast food. In this research, the
researcher takes a study case or the limitation of the research in Kentucky Fried
Chicken, the fast food or quick service restaurants outlet in Lippo Cikarang Mall.
First, the preliminary research or to gathering data for pre-questionnaire was conduct
at November 2012, and using the questionnaire methods. After the researcher finishes
the pre-test questionnaire and testing a validity and reliability test, the researcher
conducted the final Questionnaire in December 2012 by using the same method of
Questionnaire.

3.4 Research Instruments

In this research, the researcher collected the data from the surveys to the
manager of the outlet, literature review, internet research, and questionnaires as the
primary data. To analyze the collected data, researcher used SPSS program version
16.0, and Microsoft Excel program.

3.4.1 Survey

In this research, before doing the pre-questionnaire test, the researcher seeks
information, problems, and the phenomena of any issue that related to the researcher
major, management, concentration in International Business. Researcher takes this
problem of analysis of consumer behavior especially in personal factor that influence
people toward purchase decision or consuming the American fast food, and in this
case, the researcher take a case study in Lippo Cikarang Mall. As mentioned above,
the researcher takes target of respondents for the survey is people who are purchase or
consuming American fast food.
3.4.2 Questionnaire

The researcher to gathering the primary data uses questionnaire, then the raw
data from the questionnaire need to be processed to become the result. The questions
or statements in the researcher questionnaire represent of every variables that
researchers used in this research. Every variable has more than one statement, and it
will be tested with the respondents. The questionnaire was invented by Sir Francis
Galton.

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


and other prompts for the purpose of gathering information from respondents.
Although they are often designed for statistical analysis of the responses, this is not
always the case. “A distinction can be made between questionnaires with questions
that measure separate variables, and questionnaires with questions that are aggregated
into either a scale or index”.

Questionnaire in this research is conducted to know what are the most factor
that affect people toward purchase decision of purchasing or consuming the American
fast food. first, for the pre-testing the questionnaire, researcher has 28 questions or
statements that represent of five X (independent) variables and one Y(dependent)
variable. In the pre-questionnaire testing, researcher distributes the questionnaire for
20 people. After processing the pre-test questionnaire, and doing a validity and
reliability test, researcher adjust the statements into 25 statements. The adjustment
needed because only the valid and reliable statements can be used for final
questionnaire. Manual questionnaire used by the researcher in this research by
distribute to the people in the research place, then the data need to be coded manually
into the Ms. Excel before processing with SPSS program.

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


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

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


level of agreement or disagreement on a symmetric agree-disagree scale for a series of
statements. Thus, the range captures the intensity of their feelings for a given item”.
Agreement type of statement used in the questionnaire and the respondent can
choose the answer from strongly disagree level until strongly agree level. There are
five answer for Likert scale that respondents can choose; “Strongly
Agree”,”Agree”,”Neutral”,”Disagree”, and “Strongly Disagree”. The researcher
wants to get the answer from the correspondents by using points of every answer.
Then, a closed-ended question is a question format that limits respondents with a list
of answer choices from which they must choice to answer the question. With the
closed ended question, correspondent can answer the question quickly with just
choosing the number from the Likert Scale.

Table 3.1; Likert Scale for Agreement Statements

Likert Scale Table for Agreement Statements

Meaning Score of Likert Scale


“Strongly Agree” 5
“Agree” 4
“Neutral” 3
“Disagree” 2
“Strongly Disagree” 1

Source; Likert Scale


Table 3.2 Pre-Questionnaire table

Manifest
Factors Variables Measurements Scale
Variables

X1.1 Menu of American fast food is match


Likert Scale
with my taste.
X1.2 I often invite my family members, to
Likert Scale
have meal here.
Age &
X1.3 This fast food restaurant is great choice
Likert Scale
Life when I had little time to have meal.
X1.4 I feel comfort to have meal here, in this
Cycle Likert Scale
fast food restaurant.
X2.1 I often to eat here while having lunch
Likert Scale
break or free time at office
I often eat here and hang in this fast
X2.2 food restaurant with my business Likert Scale
Occupa- friend.
X2.3 This fast food restaurant outlet is near
tion Likert Scale
with my work office.
X2.4 I often meet with my business clients or
Likert Scale
clients of my work here.
X2.5 In my opinion, this restaurant can be a
Likert Scale
place to meet with my client business.
X3.1 The price of menu that this Fast food
Likert Scale
restaurant offered is quite affordable.
I often to eat this American fast food
Economic X3.2 like this and it not affect my financial Likert Scale
condition.
Situation
X3.3 Having meal in KFC, could show my
Likert Scale
social class
X3.4 Cost incurred to eat here in comparison
Likert Scale
to cook my own food is almost equal.
X4.1 I like to eat here and hanging out with
Likert Scale
my friends here.
X4.2 I like to eat here with my family. Likert Scale

Life style X4.3 I prefer to have meal outside than


Likert Scale
cooking at home.
X4.4 Culinary in American fast food is one of
Likert Scale
my hobbies.
X4.5 I often to use 24 hours delivery service Likert Scale

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


Likert Scale
Persona- food in this American fast food.
X5.2 This American fast food has many food
lity & Likert Scale
menus to offer.
Self In my opinion, KFC is still number one
X5.3 for taste and quality of food compare Likert Scale
Concept to other brands.
X5.4 Service given in this outlet is very good. Likert Scale
X5.5 This outlet is very clean and comfort Likert Scale
I am purchasing this fast food menu
Y1.1 because of great taste and various Likert Scale
menus that match with my style.
I am purchasing this fast food menu
Y1.2 because of this outlet serve a comfort
Likert Scale
place to have meal and hanging with
my business friends.
Purchase Y1.3 I am purchasing this fast food menu
Likert Scale
because of the affordable price offered.
Decision
I am purchasing this fast food menu
Y1.4 because it can full fill the needs of
Likert Scale
people lifestyle (meal with family,
hanging with friends or family).
I am purchasing this fast food menu
Y1.5 because this outlet has various menu,
Likert Scale
comfort place, great facilities and good
service.
Source: Construct by Researcher

3.4.3 Data Analysis

For analyzing the data, the researcher used SPSS program and Microsoft
Excel. The SPSS software version 16.0 used to facilitate researcher in processing the
data from the questionnaire. Ms. Excel 2007 versions also used by the researcher for
coding the Likert Scale data from the questionnaire then continue processing with
SPSS.

3.5 Sampling Design

To get the primary data in this research, the researcher doing a survey by
questionnaire. Determination of sample in the survey is very important because it will
affect the level of accuracy of the data and the research. The researcher using non-
probability sampling technique, non probability sampling is a method where some
elements of the population have no chance of selection and the researcher create big
sample size to make more possibility if there is representing all the different
characteristics of the respondents. For the sampling method, the researcher use
purposive sampling, purposive sampling also known as judgmental sampling, where
the researcher choose or decide the sample from population that appropriate for
conducting the research.
Researcher decided to use a method to determine the minimum sample for this
research. The method is called Slovin Method. Slovin's formula allows a researcher to
sample the population with a desired degree of accuracy and also it gives the
researcher an idea of how large his sample size needs to be to ensure a reasonable
accuracy of results. The formula of Slovin Method is shown below:

n=

n = Number of Samples
N = Number of Population
e = Error Tolerance

In this case, the population of the people who are buying or eating in the KFC
outlet in Lippo Cikarang Mall are around 120 people in a day and the error tolerance
is 5%, the number of sample is:

n=

n = 92.3
n = 93

From the calculation of the formula above, the researcher sample, consist of
93 respondents for this research.

3.6 Statistical Instrument

Before the researcher starts the final questionnaire for the research, there is a
step known as pre-test questionnaire. In the pre-test questionnaire the researcher takes
a samples in total of 20 people, to test the questionnaire before distribute to the final
samples in total of 71 respondents. After collecting the pre-test questionnaire result of
20 people, the researcher take a pre test statistics such as validity and reliability test
by using the SPSS Ver. 16.0 program.

In the pre-test questionnaire, the researcher can asses more about the
questionnaire, the respondent understanding of the question in questionnaires, clarity
about the statement in questionnaire, also in the processing of validity and reliability
test, the researcher can improve the validity and reliability of every statement in the
questionnaire.

3.6.1 Validity Test

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


a final research, there are a step of validity test to measure the validity of every
statements that researcher creates in the questionnaire. It is important for a test result
to be valid in order for to get an accurately applied and interpreted questionnaire.

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


actual values of X and Y. The formula is:

r=

Where, n = the number of paired observations

∑X = the X variable summed


∑Y = the Y variable summed
2
∑X = the X variable squared and then summed
∑ Y2 = the Y variable squared and then summed
(∑ X)2 = the X variable summed and then squared
(∑ Y)2 = the Y variable summed and then squared
∑ XY = the sum of the product X and Y

In this research, researcher use SPSS version 16.0 to do validity testing, the result
of the validity test comes from comparison between “r” computation and “r” table.
“r” computation result comes from the SPSS calculation and “r” table comes from
“r” value of Pearson product moment which using 0.05 confidence level, and 20
respondents with the degree of freedom of 0.444 value.

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


computation value is bigger than the value of “r” table and if the “r” computation
value is smaller than the value of “r” table, it means that the question is invalid
Table 3.3Result of Validity Test

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

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
X3.4 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
Persona- X5.1 0.703796 0.444 Valid
lity & X5.2 0.565148 0.444 Valid
Self X5.3 0.603821 0.444 Valid
Concept X5.4 0.658435 0.444 Valid
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: Construct by Researcher

3.6.2 Reliability Test

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


variables. A questionnaire is relaiable of the variable or the statements are consistent
in what is intended to measure. The researcher using SPSS software version 16.0 in
this reliability test. If the Cronbach Alpha value is more than 0.700, it means that the
questions in the questionnaire are reliable and able to be used for the second time,
third time, or more in other researches by other researchers. When the value is closer
to 1, it means that the question is more reliable, while in other side, if the value is
closer to 0, it means that the question is not reliable.

The formula of Cronbach Alpha is as below:

α=

Where,
α = Instrument reliability’s coefficient
r = mean correlation coefficient between variables
k = number of questions

The indicators for the reliability using Cronbach’s Alpha test

α > .9 Excellent
α> .8 Good
α > .7 Acceptable
α > .6 Questionable
α > .5 Poor
α < .5 Unacceptable

Table 3.5 The Result of Reliability Test

Reliability Statistics

Cronbach’s
Alpha N of Items

.967 25

Source: SPPS Ver. 16.0 and Construct by Researcher

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,

= Indicator’s average n = Amount of Respondents

Xi = Score

= Frequency

After finished with the data per indicator, next step is calculating the overall
mean score toward variables in the research. This calculation will be done based on
the formula below (Sudijono, 2006, p.48):
Where:

= Overall average

= Average per indicator

n = Amount of respondents

After finished with OMS and MS, next step is classifying the data into class
interval where this process will give description about respondent opinion toward the
variables. This process will be done based on the formula below:

i=

Where:

i = Class interval

H = Highest score in likert scale (5)

L = Lowest score in likert scale (1)

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

From the formula above, scale of interval class for this research can be
conclude as following below:

= 0.8

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

a) 4.21 – 5.00 = Strongly agree


b) 3.41 – 4.20 = Agree
c) 2.61 – 3.40 = Average
d) 1.81 – 2.60 = Disagree
e) 1.00 – 1.80 = Strongly disagree
3.6.4 Data Classic Assumption
a. Normality

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


distribute by a normal distribution or not. According to Sunyoto, D. (2011), normality
test have to be done in order to determine whether the sample data taken from a
normally distributed population, so it can be used in parametric statistics (inferential
statistics) where this process will have great analysis of correlation and regression.

b. Multicollinearity

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


variables, in the regression model, the correlation between variables must not be
happened. If there is a correlation between independent variables, then it can called as
multicollinearity.

c. Autocorrelation

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


correlation bullies in period t with an error in period t-1, in short, it is a mathematical
tool for finding repeating patterns. The autocorrelation can be defined in the research
by seen from the amount of the Durbin-Watson (DW) result from using SPSS
program. the indicator of DW value to evaluate autocorrelation; Durbin Watson result
below -2 means there is positive autocorrelation, Durbin Watson rate result at
between -2 to +2 means no autocorrelation and Durbin Watson result above +2 means
there is negative autocorrelation, according to Sunyoto, D. (2011).

d. Heteroscedasticity

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


differentiation of variance from one residual to the other residual or not. The possible
existence of heteroscedasticity is a major concern in the application of regression
analysis, because the presence of heteroscedasticity can invalidate statistical tests of
significance that assume that the modeling errors are uncorrelated.
3.6.5 Descriptive Analysis

Descriptive statistics is the discipline of quantitatively describing the main


features of a collection of data. Descriptive statistics aim to summarize a sample,
rather than use the data to learn about the population that the sample of data is thought
to represent. Descriptive statistics provides simple summaries about the sample and
about the observations that have been made, for example the statistic of data such as
mean, median, mode, standard deviation.

3.6.6 Multiple Regression

This test become is important since it has purpose to analyze the relationship
between independent variable and dependent variable which is become the main
problem in this research. According to Wijaya, 2011, p.91 the formula for processing
this test as following below:

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

Where:
Y= dependent variable purchasing decision
a = Constanta
X1 = independent variable age and life cycle
X2 = independent variable occupation
X3 = independent variable economic situation
X4 = independent variable lifestyle
X5 = independent variable personality and self concept
b1 = age and life cycle regression coefficient
b2 = occupation regression coefficient
b3 = economic situation regression coefficient
b4 = lifestyle regression coefficient
b5 = personality and self concept regression coefficient
e = random error
3.6.7 Hypothesis Test

Hypothesis test used in order to know whether the total of sample in the
research has already strong enough to describe the population or not. Requirement
that used for this test is p value (sig) < α , since the researcher use α level in this
research is 5% so α = 0,05. This requirement use to reject H0 and accept H1

F Test

The aim of this test is to know whether all of independent variables (X)
simultaneously give significant effect to dependent variable (Y) or not. The criteria
that used to reject H0 and accept H1 is F computation > F table according to Sunyoto,
D (2011) and the formula to know value of F table is

F table = Fα (V1) (V2)

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

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

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

Where:

Fo = Value of F computation

b = Regression coefficients

X = Independent variable

S = Standard deviation of the regression coefficients


T Test

The aim of this test is to know whether each of independent variable (X) has
significant effect to dependent variable (Y) or not. The following below is the criteria
which used for this test:

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


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

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

Where:

= Value of t computation

= Regression coefficients

= Certain B value, depend on hypothesis

= Standard deviation of the regression coefficients

For 2 tailed test, value of α also should be divided into 2. To determine the
value of t table, the formula is t α/2 (n-k). For determining the decision for hypothesis
on this test can use the value of significance on coefficients table with the criteria:

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


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

3.6.8 Coefficient Correlation (r) and Determination (r2)

Correlation analysis point is to find the relationship between independent


variable and dependentvariable or X factor to Y factor. Subsequently. The researcher
used correlation coefficient table according to Sudijono, A. the r will have strong
correlation between X to Y if the value is closer to 1.
Table 3.6. The correlation coefficient table

Coeficient Interval Correlation Rate


0.00 - 0.199 Very Weak
0.20 - 0.399 Weak
0.40 - 0.599 Average
0.60 - 0.799 Strong
0.80 - 1.00 Very Strong
Source : Sudijono, Correlation Coefficient Cable

The scale of r value is between 0 \< r >/ 1, where : r = 1 , it means that the influence
of dependent and independent variable are positive perfectly (if the r value is getting
closer to 1, the effect is getting stronger and more positive). r = 0, it means that there
is no correlation between dependent and independent variable.

R2 in the next column r is to know how much of dependent variable (Y) can be
explained by the independent variable (X). the rest of R square value is explaining for
another factor.
CHAPTER IV
ANALYSIS OF DATA AND INTERPETATION OF
RESULT

4.1 Descriptive Analysis

4.1.1 Data collection

In collecting the data for the research, the researcher shares 25 valid
statements to people in the KFC outlet in KFC Lippo Cikarang Mall by distributing
questionnaire, after get permission from the manager of the outlet for conducting
research in the fast food outlet. The researcher used offline system questionnaire,
means the researcher went to the outlet for distribute the questionnaire directly to the
people who are purchase or consuming the fast food.

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


Slovin’s calculation method, in order to get the total sample in one population, that
already explained in chapter 3. For the calculation and testing method stated in
chapter 3, researcher used SPSS Program Ver. 16.0. and Microsoft Excel.

4.1.2 Characteristic of Respondent

a. Gender of the respondents.

The figure below explain the data based on the primary data collected from the
questionnaire, the characteristic of respondent for gender for this research are 34 male
respondents or 37% and 59 female respondents or 63% of 93 people that participate in
this research who are purchasing or consuming fast food in KFC outlet at Lippo
Cikarang Mall. The respondent majority is female. They are worker, who had lunck
break, work in the Lippo Cikarang area, or mothers who take their children for meals.
Male Female

37%
63%

Figure 4.1 Gender Distribution Chart

Source: primary data, Construct by researcher

b. Age of the Respondents

The figure below explains for the characteristic of respondent based on their
age, the researcher classified the age into three groups. First, there are total of 29
respondents or 31% that have age ranged from 17 until 25 years old. Second, there are
total of 41 respondents or 44% that have age ranged from 26 until 35 years old. And
the last, there are 23 respondents or 25% have their age above than 35 years old. Since
the KFC fast food restaurant can consumed by all age people, so there are many
people that have variety age have their meal there. Majority respondents are employee
who had lunch break in KFC outlet.

17-25 Yo 26-35 Yo > 35 Yo

25%
31%

44%
Figure 4.2 Age Distribution Chart

Source: primary data, Construct by researcher

c. Education Background of the Respondents

The figure below explains the education background of respondents in the research,
there are 4 respondents or 4% that have their education background for elementary
school until senior high school. Then, there are 33 respondents or 36% have the
education for diploma degree. Last, 56 respondents or 60% have their education for
university degree.

Elementary - Senior High Diploma University


4%

36%

60%

Figure 4.3 Education Background Distribution Chart

Source: primary data, Construct by researcher

d. Occupation Background

The data of respondents occupation background from the questionnaire, show


us the majority of respondents have their job as an employee of a company in Lippo
Cikarang area are 49 respondents or 53%. There are students also that have their meal
in KFC restaurant are 26 respondents or 28%. Another occupation majority in “Ibu
Rumah Tangga” are 11 respondents or 12%. Last, there are also an entrepreneur
people who have their meal are 7 respondents or 7%.
Students Employee Entrepreuneur Others

12%
7% 28%

53%
Figure 4.4 Occupation Background Distribution Chart

Source: primary data, Construct by researcher

e. Monthly Income

< 5 Million IDR 5-10 Million IDR 11-15 Million IDR


16-20 Million IDR > 20 Million IDR
11% 2% 2%

49%

36%

Figure 4.5 Monthly Income Distribution Chart

Source: primary data, Construct by researcher

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.

f. Respondent Awareness of Fast Food Risk

Besides knowing the characteristic of respondents, the researcher also wants to


know, are people aware for risk of health diseases caused by Fast Food? From the
questionnaire distributed to the respondents, the statement for the respondents “ I
aware of health risk by consuming fast food.”, then the result 89 respondents or 96%
knows and aware about the risk caused by consuming fast food, and 4 or 4%
respondents don’t know and don’t aware about the risk caused by consuming fast
food.

Yes, I do No, I don’t know

4%

96%

Figure 4.6 Respondent Awareness of Fast Food Risk Distribution Chart

Source: primary data, Construct by researcher

4.1.3 Mean Score and Overall Means Score Analysis

This is the result of mean score (MS) and overall means score (OMS) analysis
through 93 respondents that participate in this research. This test purpose is to know
the response from the respondents for the agreement level to the factor, by analyzing
statements or indicators from every variable in the questionnaire. There are five
interval class that explains the response from respondents to the statements or
indicators, there are; 4.21 – 5.00 is strongly agree, 3.41 – 4.20 is agree, 2.61 – 3.40 is
average, 1.81 – 2.60 is disagree and 1.00 – 1.80 is strongly disagree.
Table 4.1 Mean Score and Overall Mean score for Age & Life Cycle

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.

Overall Mean Score 3.54 3.41 – 4.20 Agree


Source: Primary data, construct by Researcher

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.

4.1.4 Statistical Descriptive

Table 4.7 Descriptive Statistics

Descriptive Statistics

Std.
N Range Minimum Maximum Mean Deviation Variance

Statistic Statistic Statistic Statistic Statistic Std. Error Statistic Statistic

x1 93 10 8 18 14.80 .215 2.072 4.295

x2 93 19 6 25 15.91 .396 3.821 14.601

x3 93 10 5 15 10.75 .228 2.200 4.840

x4 93 13 7 20 13.39 .247 2.387 5.696

x5 93 9 10 19 15.25 .179 1.730 2.993

y1 93 7 16 23 19.90 .167 1.609 2.588

Valid N
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.

4.1.5 Classic Data Assumption analysis

Next analysis that researcher wants to explain is multicollinearyty test. The


result is show in the table below.

Table 4.8 Result of Collinearity test

Collinearity Statistics

Tolerance VIF

.537 1.863

.572 1.748

.642 1.558

.688 1.453

.763 1.310

Source; SPSS Program Ver. 16.0

Multicollinearity is a statistical phenomenon in which two or more predictor


variables in a multiple regression model are highly correlated. The researcher use
SPSS program to test of there is a multicollinearity in the research. According to
Sunyoto, D. (2011), the condition of variance inflation factor (VIF) must be below
than 10, alpha tolerance 10% or 0.10 then the VIF = 10. (VIF, <10). For the indicator
of tolerance, the result is must above than 10% or 0.1. The researcher concludes there
is no collinearity, since the result from the table above, VIF result is below than 10,
and the tolerance computation is above than 0.1.

This research conducted with the 93 respondents. For testing the


autocorrelation, the researcher using Durbin Watson tests from SPSS program.
Autocorrelation in the research must not happen, and the indicators for Durbin
Watson test according to Sunyoto, D,(2011) p91,

Table 4.9 Result of Durbin Watson test

Durbin-Watson

1.425

Source; SPSS Program Ver. 16.0

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

Source: primary data, Construct by researcher

Figure 4.8 Normality Test Probability Plots Graphic

Source: primary data, Construct by researcher


From two figures above, the researcher concludes the data distribution in this research
is normal.
For last, last test result in multiple regressions analysis is heteroscedasticity
test. From the SPSS program, the researcher gets result of this test.

Figure 4.9 Result of Heteroscedasticity Test

Source: primary data, Construct by researcher

From the scatter plot result above, the researcher concludes heteroscedasticity
does not happen and data can be processed and analyzed.

4.2 Multiple Regression Analysis

The researcher used multiple regression test method to know the influence of
personal factor in characteristics of consumer behavior toward people purchase
decision in purchasing or consuming the American fast food, study case in KFC the
American fast food restaurant in Lippo Cikarang Mall. After distributing the
questionnaires consist of statements or indicator for every factors to the 93 repondents
that participate in this research, the researcher got result after processing the data by
SPSS program Ver.16.0 and the result are in the table below;
Table 4.10 Result of Multiple Regression Test (Coefficients)

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)

x1 .151 .069 .194 2.171 .033 .620 .227 .142

x2 .084 .036 .200 2.307 .023 .550 .240 .151

x3 .187 .060 .256 3.134 .002 .613 .318 .205

x4 .056 .053 .083 1.045 .299 .460 .111 .068

x5 .312 .070 .335 4.467 .000 .598 .432 .293

a. Dependent Variable:
y1
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

Table 4.11 Result of Multiple Regression Test (ANOVA)

ANOVAb

Model Sum of Squares df Mean Square F Sig.

1 Regression 149.123 5 29.825 29.152 .000a

Residual 89.006 87 1.023

Total 238.129 92

a. Predictors: (Constant), x5, x2, x3, x4, x1

b. Dependent Variable: y1

Source: SPSS program, ver. 16

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

a. Predictors: (Constant), x5, x2,


x3, x4, x1

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.

4.3 Interpretation of Result

In this part, the researcher will describe the result of this research about the
influence of Personal factor in characteristic of consumber behavior toward people
purchase decision in purchasing or consuming fast food KFC, study case in KFC
Lippo Cikarang Mall. Based on the ANOVA test or F-test table result, the
significance level is 0.000 lower than the alpha level 0.05 (5%), that means variable
of Age & Life Cycle(x1), Occupation(x2), Economic Situation(x3), Lifestyle and
Personality(x4) & Self-concept(X5) in this research affect or influence people
purchase decision.
a) Age and lifecycle (X1) toward Purchase decision (y)

From the result of multiple regression tests, the researcher can conclude; the
first factor, Age and life cycle stage (X1) has influence toward people purchase
decision. People purchase decision in purchasing goods or services are changeable
during their ages and lifetimes. From the questionnaire data, respondents are agree
with the menu of American fastfood that is match with their taste. The respondents
are also like to invite their family member to eat at American fast food KFC Lippo
Cikarang Mall. The short time break can be factor that people decide to have their
meal at this fast food restaurant and people are agreed to feel comfort to had meal in
the outlet.

b) Occupation (X2) toward Purchase decision (y)

Second factor, occupation (X2) also has influence toward people purchase
decision in this research. Occupation can determine how goods or services that people
purchase or buy. High position of a person, will make their decision for purchasing
the expensive, good, or match with their occupation. From the respondents answer,
they are all having average of opinion that occupation can affect their decision to eat
in the outlet, where average means people are agree and disagree or moderate to
assess the statements. Researcher can conclude their purchase in KFC affected by
their occupation for example the position of their jobs, outlet is near from their office,
or another factor such as follow their business mates to have meal there.

c) Economic situation (X3) toward Purchase decision (y)

Third factor, economic situation (X3), affects the people purchase decision in
consuming fast food. The basic of people purchase ability is their ability to buy with
considering their income. Income level of a person will affect their savings and
consumption. Higher income of person will also increase the level of savings and
increase their consumption. Lower income of a person will decrease their savings and
decreasing their consumption. The indicators of economic situation can affect their
decision in purchasing fast food can be seen from the respondents opinion.
Respondents are agree that price of fast food menu is affordable, the purchasing of
American fast food menu will not affect their economic condition, and the cost
occurred when cooking at home than buying fast food is almost equal.
d) Lifestyle (X4) toward Purchase decision (y)

Lifestyle (X4) or the fourth factor in this research has less influence toward
their purchase decision in purchasing American fast food KFC. Lifestyle is a part of
people, how do they live in activities, interest and opinions (AIO). Activities
dimension for example, work, hobbies, shopping, sports, interest for example, food or
culinary, fashion, entertainment, family, and opinion for example social issue,
business, and products. The researcher concludes the respondent consists of cikarang
people do not have same lifestyle for people that live in another city such as Bekasi
and Jakarta. In fact, the lifestyle between people in Cikarang is different with people
in Jakarta, this lifestyle differences caused by several factors such as, social
environment, economic background and the personality of the people. The different
lifestyle in American fast food culinary interest create a different result, so from the
result data, the lifestyle factor has less or no influence toward people purchase
decision in purchasing American fast food KFC. The different lifestyle in American
fast food culinary interest create a different result, so from the result data, the lifestyle
factor has less or no influence toward people purchase decision in purchasing
American fast food KFC.

e) Personality and self concept (X5) toward Purchase decision (y)

Last, Personality and Self-concept (X5) is the fifth factor in this research that
has influence to people purchase decision. From the data, the researcher can conclude
all respondents agree with their personal and their self-concept that influence their
purchase decision in purchasing fast food. People have different personalities and self
concept, but in this research, all of respondents have their same personality for having
their meal in American fast food KFC because of their personal reasons such as they
love to consume the American fast food especially KFC menu. Another reason for
personality and self concept is KFC restaurant has variety menu, delicious taste and
quality of food, service, etc better than another American fast food restaurant.

From the explanation above, the researcher concludes the people purchase
decision 62.6% affected by five factors above and for the individual factor. The most
dominant factor influence people purchase decision is personality and self-
concept factor(X5), it can be seen from T-test result, with the highest t computation
value (4.467) than another variables. According to Sunyoto, D. (2011), the dominant
factor can be seen from the highest result of t-test value. When consuming fast food or
often called as junk food, people must consider about the risk of health that caused by
consuming fast food. From this research, 96% of respondent knows about the health
risk but they ignores it and continue their purchasing because of the personality and
self-concept factor that most affect their purchase decision.
CHAPTER V
CONCLUSIONS AND RECOMMENDATIONS

5.1 Conclusion

Kentucky Fried Chicken is one of many quick service restaurants that sells
fast-American food menu in Indonesia, for Indonesian people KFC is still number one
to be chosen for several fast food restaurants, proof with the top brand survey in 2012.
Indonesian people love to consume this American fastfood menu. With the high risk
of health if consuming the fast food so much, mostly people are aware for the risk,
and still want consume it. There are many serious health illnesses caused by
consuming fast food. Why people want to consume it? What factors those motivate to
consume the fast food?

From the multiple regression analysis, researcher got the formula for this
research Purchasing Decision = 0.194X1+0.200X2+0.256X3+0.083X4+0.335X5. F test
result, with the F table (29.152) is higher than F computation (2.32) then all
independent factors has significant correlation toward dependent variable. T test
result, X1, X2, X3, X5 has significance correlation toward dependent variable(Y) and
X4 has not significance toward dependent variable (Y).

In this research, there are five independent variables (X) consist of 28


statements as the statement or indicator, which has 3 invalid statements and 25 valid
statements for conducting the research. From the data collection and processing via
SPSS Program, the researcher gets result for this research, the dominant factor that
affect people purchase decision is fifth factor, personality and self-concept (X5). as
already explained in the previous chapter, personality refers to the unique people
psychological charactersictics or their opinion or mindset that relatively consistent
and long lasting responde to one’s own condition. Self concept refers to people
possession then it can reflect their identities. With the personality, individual or
people wants to purchase and consume one brand or one product because they believe
with only that product or brand.
From the explanation above, the researcher concludes besides the dominant
factor that influenced people purchase decision, there are another external factors that
also influence people purchase decision. The adaptation ability for KFC Company to
adapt with Indonesian culture has an important role to get people attention for
consuming fast food, for example the addition menu of rice and Perkedel, it will
increase people interest for having meal in foreign fast food restaurants like KFC.
Besides adaption to the Indonesian culture, the bundling price for every menu that
KFC offers to customer is also important. With the affordable price, it also can
increase people interest for purchasing fast food menu.

5.2 Recommendation

From the conclusion, the researcher has several recommendations for object
study in increasing people purchase decision in purchasing or consuming fast food
KFC;

a) For factors or variables that has influence toward people purchase


decision(X1,X2,X3, and X5) KFC should maintain the strategy, plans, and
programs to keep the sales increase. As the result from this research, people
purchase decision dominantly affect by people personality and self-concept. KFC
should maintain and increase their product quality and service quality, so that
people can keep their personal reason to have fast food menu only in the KFC
than another fast food restaurants.

b) For factor or variable that has not influence toward people purchase
decision (X4), KFC should care about the lifestyle factor of Cikarang people. If it
possible, than the company can take study about learning people lifestyle in
Cikarang for increasing company sales. People’s lifestyle is different from one
place to another place; the strategy must be different for facing the different
lifestyle. For example, Cikarang people would like to hangout and have meal with
their children, to attract more customers, KFC can improve the playground area
for the customer’s children, and then the children like to play there while having
their meals.
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