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THESIS
SILVIA
NIM. A1841215
i
THE EFFECT OF BRAND NAME IN ENGLISH
TOWARDS PURCHASING DECISIONS OF
MAKE OVER PRODUCT
Silvia
NIM. A1841215
Supervisors: Signature
Approved by:
Head of Study Programme : Wui San Taslim, S.E., M. M. ………………
NIK. 009.1.0210.02
i
TABLE OF CONTENT
COVER
SEMINAR APPROVAL
TABLE OF CONTENT ...................................................................................... i
LIST OF FIGURES ............................................................................................ iii
LIST OF TABLE ................................................................................................ iv
LIST OF APPENDICES .................................................................................... v
CHAPTER 1 INTRODUCTION ....................................................................... 1
1.1 Research Background ........................................................................... 1
1.2 Research Problem ................................................................................. 2
1.3 Scope of Research ................................................................................ 2
1.4 Purpose of Research ............................................................................. 2
1.5 Research Contribution .......................................................................... 3
1.5.1 Theoretical Contribution ............................................................. 3
1.5.2 Practical Contribution ................................................................. 3
CHAPTER 2 LITERATURE REVIEW ........................................................... 4
2.1 Theoretical Basis .................................................................................. 4
2.1.1 Definition of Brand ..................................................................... 4
2.1.2 Criteria of Brand ........................................................................ 4
2.1.3 Foreign Brand Naming ................................................................ 6
2.1.4 Criteria for Foreign Brand Names .............................................. 6
2.1.5 Purchase Decision ....................................................................... 7
2.2 Empirical Study .................................................................................... 9
2.3 Conceptual Framework......................................................................... 12
2.4 Hypothesis ............................................................................................ 12
CHAPTER 3 RESEARCH METHOD .............................................................. 13
3.1 Form of Research ................................................................................. 13
3.2 Place and Time of Research ................................................................. 13
3.2.1 Place of Research ....................................................................... 13
3.2.2 Time of Research ........................................................................ 13
3.3 Population and Sample ......................................................................... 13
3.3.1 Population .................................................................................. 13
3.3.2 Sample ......................................................................................... 13
3.4 Research Variable ................................................................................. 14
3.4.1 Dependent Variable ..................................................................... 14
3.4.2 Independent Variable .................................................................. 14
3.5 Technique and Instrument of Data Collecting ...................................... 14
3.5.1 Data Type .................................................................................. 14
3.5.2 The Technique of Data Collecting .............................................. 14
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3.6 Validity and Reliability ........................................................................ 15
3.6.1 Validity........................................................................................ 15
3.6.2 Reliability .................................................................................... 15
3.7 The Technique of Data Analysis .......................................................... 15
3.7.1 Classic Assumption Test ............................................................. 16
3.7.2 Simple Linear Regression ........................................................... 16
3.7.3 Coefficient Correlation................................................................ 17
3.7.4 Coefficient Determination ........................................................... 17
3.7.5 Hypothesis Test ........................................................................... 17
BIBLIOGRAPHY ............................................................................................... 18
APPENDIX .......................................................................................................... 20
ii
LIST OF FIGURE
iii
LIST OF TABLE
iv
LIST OF APPENDIX
Appendix 1 Observation Sheet.............................................................................. 20
Appendix 2 Questionnaire Framework ................................................................. 21
Appendix 3 Questionnaire .................................................................................... 23
v
CHAPTER 1
INTRODUCTION
1
Based on the data above, English is the number one most spoken language
worldwide. Furthermore, according to Statista.com (2021), 1.35 billion people
worldwide speak English as a native or as their second language.
The competition in the business world is getting fierce in this era. Therefore,
companies are looking for ways to make its product attractive. One of the ways is
by using of brand name in English. Nowadays, English language usage as a brand
name can easily be found in Indonesia. “Many local manufactures try to raise the
prestige of their product by creating brands in English.” (Rachmawati et al., 2016,
p. 52). The writer often sees Indonesian products using brand names in English,
such as Rollover Reaction, Social Cosmetics, Beauty Story, Dear Me Beauty, Rose
All Day, and others. Among them is Make Over, a beauty product that launched in
2010. Make Over is one of the local brands that goes International by supporting
The 2018 Paris Fashion Show. Moreover, a study conducted by Gupta & Verma
(2017), found out that foreign brand names are preferred for cosmetics products.
Previous research conducted by Shehzad et al. (2014), in their study entitled
Influence of Brand Name on Customer Choice and Decisions, found out a brand
image or brand name has a strong positive relationship with customer buying
behavior. Therefore, it is essential to know how a brand name in English can
attract buyer attention and affect purchase decisions. Based on these reasons, the
writer will research “The Effect of Brand Name in English towards
Purchasing Decision of Make Over Product.”
2
1.5 Research Contribution
1.5.1 Theoretical Contributions
This research is expected to be useful for knowledge and theoretical
development, especially for the readers and the next researchers with similar
topics.
3
CHAPTER 2
LITERATURE REVIEW
4
2. Meaningfulness
The brand represents a category, an element of a product, or the type of
individual who might use the brand. Consider the product's underlying
meaning. This is important for product awareness and recognition, for
example, Dear Me Beauty and Fair and Lovely cream.
3. Likability
The brand should be appealing and playful. A brand name also needs to be
aesthetically pleasing to the target customer. Often, the creativeness of the
brand name is essential to capturing the character of a brand, for example,
Volkswagen.
4. Transferability
The brand can introduce a new product with the same or different category.
A marketer must bear in mind that the brand name should be able to be used
across market groups, for example, Apple, which is a fruit name and thus
does not preclude brand and product expansions.
5. Adaptability
The brand should be adaptable and updateable. Customer perception values
and opinions change over the years. The more versatile a brand name is, the
easier it is to change it to suit the needs of the customer. Additionally, a
brand name can be altered to suit a range of consumers or marketing
scenarios.
6. Protectability
The brand legally protectable and competitive with similar brands should
retain its trademark right and not become generic. Marketers must choose a
brand name that is legally protected globally, register it formally with the
proper regulatory authorities, and actively protect the trademarks from
unauthorized illegal infringement.
Brand names play an important role in giving an impression to people. When
looking at a product, consumers will notice the name first, rather than other brand
features. These will lead them to brand characteristics and brand awareness. To
improve brand awareness, brand names should:
1. Simplicity and ease of pronunciation and spelling
The brand names simplicity makes it easier for people to understand and
interpret the brand name. Short names are easier to remember since its
simple to encode and remember. A brand name pronunciation and meaning
should be straightforward, clear, and intelligible. However, how a brand
name is spoken can affect its meaning, leading to various impressions. A
hard to pronounce brand name can lead to mispronouncing and
understanding.
5
2. Familiarity and Meaningfulness
Brand names should be memorable and known to customers in order to use
the pre-existing knowledge. The interpretation might be either concrete or
abstract. Customers have their own memory. Familiar and meaningful
names can help customers understand and recall their memory to understand
the meaning of brand names.
3. Differentiated, Distinctive, and Unique
Although selecting a short, easy-to-pronounce, recognizable, and
meaningful brand name might aid in client comprehension, brand names
should be different, distinctive, and unique to increase brand recognition. A
different, distinctive, and unique brand name makes it easier for the
customer to distinguish the product.
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1. Brand name should have a positive meaning in a foreign language.
Some words may have different meanings in different countries. Therefore,
marketers need to investigate the meaning before deciding on a brand name
to avoid a wrong perception to customers.
2. Brand names should be easy to pronounce.
Some foreign languages may find it hard to be pronounced by locals. It is
important to choose an easy name to be pronounced so that customers can
easily remember the brand names.
3. The foreign language that is used should come from a good image country.
Each country has its own image. Choosing a language from a country with a
good image is important to draw a good image and high quality for the
product.
4. Brand names should have a suitable meaning with the product.
It is essential to choose a name from a foreign language that has a similar
meaning. Customers may look for information about the brand names.
Therefore, it is better to choose a suitable foreign name.
Problem Recognition
Information Search
Evaluation of Alternatives
Purchase Decisions
Post-purchase Behaviors
7
According to Kotler et al. (2018), the customer typically passes through five
stages which are:
1. Problem Recognition
The buying process begins when a customer notices their needs or
problems. Customers’ needs or problems are triggered by internal and
external stimuli. A marketer can take advantage of to identify what customer
interest.
2. Information Search
In this stage, the customer starts looking for information to solve the
problem or fulfill their needs. Information sources are divided into four
groups: personal, commercial, public, and experiential. Each of these
sources has a different influence on customers purchasing decisions.
3. Evaluation of Alternatives
After gathering information about their needs, the customer will evaluate
their options to determine which one is the most suitable solution for their
problem. Kotler et al. (2018) stated several fundamental concepts to assist
marketers in comprehending the customer evaluation process: First, the
consumer is attempting to meet demand. Second, the customer is seeking for
certain benefits from the product solution. Third, the customer sees each
product as a set of features with varied benefits.
4. Purchase Decisions
This stage is the focus of the purchase decision stages. In this stage, the
customer is ready to pull the trigger and buy the product or services. The
customer has decided which product and services are ideal for them.
However, the customer frequently uses "mental shortcuts" in the decision-
making process, known as heuristics or rules of thumb. There are three
types of heuristics. Such as First, conjunctive heuristic, select a product that
complies with the basic minimum standard. Second, lexicographic heuristic,
the customers choose the best brand. Third, the elimination-by-aspects
heuristic, the customer assesses brands and eliminates those that fall short of
the minimum standards.
5. Post-purchase Behavior
This stage happens after the customer has decided to purchase. However,
this does not imply that the purchase decision is complete. In this stage, the
customers consider whether they made the best decision or not. When the
products or services they purchase meet and exceed their expectations, they
will be satisfied. Whereas, when the products or services they buy fall of
their expectations, the customers will be dissatisfied.
8
2.2 Empirical Study
Table 2.1 Previous Studies
No Year Writer Title Purpose Method Object/Case Result
1 2014 Umer Influence of This study This research Effect of brand This study shows that
Shehzad, Brand Name examines the is a name on customer a brand image or
Salman on Customer effect of brand quantitative decision-making, brand name has a
Ahmad, Choice and names on research using understanding strong positive
Kashif Iqbal, Decision. customer buying a non- customer buying relationship with
Muhammad behavior in the probability behavior to the customer buying
Nawaz, Saqib University of convenient brand, and behavior.
Usman Gujranwala, sampling identifying the
Faisalabad, and technique with customer's emotions
Lahore. 250 regarding brands
respondents.
2. 2019 Loeky Rono The Influence This study aims This research Foreign brand name 1. Foreign brand
Pradopo of Foreign to know whether is quantitative and brand image of name
Brand Name foreign brand research with CFC toward Sales significantly
and Brand name and brand 100 of PT Pioneerindo influences the
Image of CFC image influence respondents. Gourmet brand image of
toward Sales PT Pioneerindo International Tbk. CFC of PT
of PT Gourmet Pioneerindo
Pioneerindo International Tbk Gourmet
Gourmet sales increase. International Tbk
International with a score of
9
Tbk 0,682.
(Pengaruh 2. Brand image
Pemberian significantly
Merek influences sales
Berbahasa of CFC of PT
Asing dan Pioneerindo
Citra Merek Gourmet
CFC International Tbk
Terhadap with a score of
Penjualan PT 0,754.
Pioneerindo 3. Foreign brand
Gourmet name and brand
Internasional image
Tbk) simultaneously
significant
affects sales of
CFC of PT
Pioneerindo
Gourmet
International Tbk
with a score of
0,790
10
3 2016 Rachmawati, Influence of This study aims This research The influence of The use of brand
I., Sary, F. P. the Use of to know the is quantitative brands in English names in foreign
and Perdani, Brands in a influence of research with on the purchase- language
D. R. Foreign brands in English 400 decision process of simultaneously
Language on the purchase- respondents. consumers of influences the
(English) on decision process cosmetic products purchasing decision-
the Purchase of consumers of made in Indonesia. making process for
Decisions cosmetic products Indonesian-made
Process of made in cosmetics. Only the
Cosmetic Indonesia. benefits, culture,
products personality, and user
Made in attributes influenced
Indonesia. the buying decision-
making process of
customers of
Indonesian cosmetic
products.
11
Based on the previous study, this research has some similarities and
differences. This research analysis is about the effect of foreign brand names on
customers' decisions on Indonesia's products. Previous research conducted by
Umer Shehzad, Salman Ahmad, Kashif Iqbal, Muhammad Nawaz, Saqib Usman
(2014) The difference between the previous researches with this research is the
location of where the research was conducted. Other research was conducted by
Loeky Rono Pradopo (2019). The difference between the previous researches with
this research is the variable. Previous research focuses on sales increase.
Meanwhile, this research focuses on customers’ purchase decisions. The
following previous research was conducted by Rachmawati, I., Sary, F. P., and
Perdani, D. R. (2016). There is also a difference found between the previous
research and this research, which is the product. Previous research provides
several brands; meanwhile, this research focuses on one product. To sum up, this
research and the three previous pieces of research have similarities in the object of
research which is a brand name. Three previous pieces of researches also use a
brand name as independent variables. In addition, the method of research that was
used in previous research and this research is also the same, which is quantitative
research. The three previous pieces of researches aimed to provide scientific and
precise information data for this research.
Result
Figure 2.2 Conceptual Framework
2.4 Hypothesis
Based on the conceptual framework mentioned before, the hypothesis is
made. Therefore, there is a hypothesis in this research, which is:
H1: There is a relationship between brand name in English and Purchase decision.
12
CHAPTER 3
RESEARCH METHOD
3.3.2 Sample
According to Sugiyono (2018), a sample is a part of the number and
characteristic of the total population. The sample of the research must represent
the population that is being studied. The writer used purposive sampling to find
the sample. Purposive sampling is a technique to collect the sample with certain
considerations (Sugiyono, 2018). According to Roscoe (1975), samples ranging
from 30 to 500 are recommended. The writer will look for 50 people to become
the respondents in this research. The classifications for the respondents for this
research are: informants who lived in Pontianak, women aged 17-30, and who
have seen and purchased Make Over products.
13
3.4 Research Variable
3.4.1 Dependent Variable
While doing research, the dependent variable is the one that is measured in
an experiment and represents a result. The dependent variable in this research is
purchase decisions (Y).
14
Table 3.1 Likert Scale
(1) (2) (3) (4) (5)
Strongly Disagree Neither Agree Strongly
Disagree Agree
Then, the writer will distribute the Google form link through group chat, and the
writer will ask for help to spread the link to get more respondents. The estimated
time needed to answer the question is 5-10 minutes.
3.6.2 Reliability
A reliability test is carried out after the validity test result is valid.
Reliability is a test to know the consistency of a measure. The ability of a
measuring instrument to consistently measure the phenomenon it is designed to
assess is defined as reliability (Ho, 2014). In other words, a reliability test is to
measure if the questionnaire still gives the same result if it is measured again at a
different time. To test the reliability of the data, the writer will use SPSS
(Statistical Package for Social Science) application. The data will be tested and
interpreted. In this research, the writer uses Cronbach’s Alpha. The questionnaire
is reliable if the value of Cronbach’s Alpha is > 0.6.
15
3.7.1 Classic Assumption test
1. Normality Test
Before doing a simple linear regression, several tests should be
performed. The Normality test is one of them. A normality test is used
to determine whether the data is normally distributed. Before
continuing with the following test, data should be distributed
normally. If the significant value (Sig.) is greater than 0,05, the data
are normally distributed.
2. Heteroscedasticity Test
The heteroscedasticity test is used to determine whether there is a
difference in variance from residual between one observation and
another. Heteroscedasticity occurs when the variance from residual is
varied. A good regression model does not have heteroscedasticity
symptoms. Scatterplot and The Glejser test is used to determine the
heteroscedasticity symptoms. A scatterplot test is conducted to see
heteroscedasticity symptoms through the graphic. The data does not
have heteroscedasticity symptoms if the graphic does not indicate a
pattern. In addition, to strengthen the result, Glejser test is conducted
to indicate heteroscedasticity through statistic scores. The data does
not have heteroscedasticity symptoms if the significant value (Sig.) >
0,05.
3. Linearity Test
The linearity test is used to determine if the independent and
dependent variables have a linear relationship. A linear relationship
between the two variables is deemed to be valid data. If the value of
the significant deviation from linearity is more than 0.05, the
independent and dependent variables have a linear relationship.
Y : Purchase decisions
a : Constanta
16
b : Regression coefficient
x : Brand name
e : Error
17
BIBLIOGRAPHY
18
Rachmawati, I., Sary, F. P., & Perdani, D. R. (2016). Influence of the Use of
Brands in a Foreign Language (English) on the Purchase Decision Process
of Cosmetic Products Made in Indonesia. Pertanika Journal Social
Sciences, and Humanity.
Roscoe, J. (1975). Fundamental Research Statistics for the Behavioural Sciences,
2nd Edition. New York: Holt Rinehart & Winston.
Sammut-Bonnici, T. (2015). Brand and Banding. Wiley Encylopedia of
Management.
Shehzad, U., Ahmad, S., Iqbal, K., Muhammad, N., & Usman, S. (2014).
Influence of Brand Name on Customer Choice and Decisions. IOSR
Journal of Business and Management.
Sugiyono. (2018). Metode Penelitian Kuantitatif, Kualitatif, dan R&D. Bandung:
Alfabeta.
Szmigiera, M. (2021, March 20). The Most Spoken Language Worldwide 2021.
Retrieved October 09, 2021, from Statista.com:
https://www.statista.com/statistics/2666808/the-most-spoken-languages-
worlwide/
Tauhidi, H. (2008). Pengaruh Pemberian Merek berbahasa Asing, Iklan, dan
Media Terhadap Persepsi Konsumen (Produk Minuman Kesehatan Vita
Charm). Jakarta: Fakultas Ekonomi dan Ilmu Sosial Univertitas Islam
Negeri Syarif Hidayatullah.
Walkowiak, J. B. (2018). Foreign branding in Poland: Chrematonyms and
anthroponyms. Proceedings of Iconn 2, (pp. 218-227). Poland.
Wentz, L., & Suchard, D. (1993). Euro Ad Execs Pay Homage to the Brand.
Brandweeks.
19
APPENDIX
Name : Silvia
1 Memorability
2 Meaningfulness
3 Likability
4 Transferability
5 Adaptability
6 Protectability
20
APPENDIX 2: Questionnaire Framework
Research
Indicator Questions
Variable
21
“Make Over” is a legal product name.
22
APPENDIX 3: Questionnaires
__________________________________________________________________
Dear all participants, my name is Silvia, a student from Politeknik Tonggak
Equator majoring in English for Business and Professional Communication. I
would like to convey this questionnaire to all the participants. If you are willing to
fill out this questionnaire, the answer will be used for research with the title “The
Effect of Brand Name in English towards Purchasing Decision of Make Over
Product.”
Thank you for your participation and availability of time to fill out this
questionnaire.
__________________________________________________________________
Respondent Identity:
Name :
Gender :
Age :
City :
Instructions:
Put a mark on the answer that best fits your opinion. The answer scale is divided
into five: SD: Strongly Disagree, D: Disagree, N: Neither, A: Agree, SA: Strongly
Agree.
23
6 "Make Over" has a positive meaning in the
Indonesian language.
7 "Make Over" represents a high-quality product.
8 “Make Over” looks appealing and attractive.
9 “Make Over” gives its own distinct
characteristics in my mind.
10 I will not confuse if “Make Over” launched a
new product.
11 I will not confuse if "Make Over" launched
other products but still related to beauty
products.
12 I think the "Make Over" name can be used for
another product.
13 I have already known "Make Over" as a beauty
product for a long time.
14 "Make Over" can always be remembered as a
beauty product for a long time.
15 I think "Make Over" can always do innovation
in the future with the same name.
16 “Make Over” is a legal product name.
17 I think "Make Over" can compete with other
brands.
18 I think the "Make Over" brand name cannot
easily be copied by other brand competitors.
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because it matched my expectations.
26 I will recommend “Make Over” to relatives.
25