Post on 18-Mar-2023
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FACTORS DETERMINE STUDENT’S CHOICE OF BUYING
SAMSUNG ANDROID SMARTPHONE
(A CASE STUDY IN PRESIDENT UNIVERSITY)
I.I ABSTRACT
In this paper will investigate about factors that
determine student’s choice of buying Samsung android
smartphone in President University, Cikarang, Indonesia. The
proposed study of this paper distributes questionnaire consist
of 25 questions including product, price, place, promotion,
brand equity and customer buying decision. A sample 83 people
are selected randomly at President University and they are
asked to reply the questions on Likert scale based. The
results by using mean analysis show there are dominant factors
in determining student’s choice of buying Samsung android
smartphone related to marketing mix (4Ps) and brand equity.
Brand equity and Product have the highest role to influence
customer buying decision among other factors, which means
customers are care more about brand equity, product’s quality
and features. Finally among different characteristic people
are interested in having worldwide brand product with features
that compatible with their needs.
Keywords: Market, marketing mix, brand equity, customer buying decision, research
journal
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I.I. INTRODUCTION
Communication is important part of human life and in
business world, it is key to any business success. How
potential clients got the information of products will
determine how high the possibility of them making deal with
the company (myownbusiness.org, 2012). The demand of the
telecommunication industry for advanced mobile devices already
answered by Samsung. Samsung which is belong to smartphone is
a device that has phone capability and able to performs some
functions of the computer. It is capable of text messaging,
camera, video recorder, e-mail, internet, e-book reader, push
to talk, review and edit documents, global positioning system
capability, and many other applications (myownbusiness.org,
2012).
Samsung sees every challenge as an opportunity with its
world recognized constant innovation and top quality products
and built a strategic emerging information industry
(samsung.com, 2012). From the result of the technological
capabilities development adhered to its founder philosophy and
top management (Park & Gil, 2012), they opened up its
technology to its clients, partners, and developers to achieve
long run benefit building technology ecosystem and forecast
their future fair share of rewards by maintaining the constant
innovation (Diong & Cho, 2008). Samsung Android Smartphone’s
shipments is number one in the world, nevertheless, in
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Indonesia Samsung’s sales is number 3 left behind by Nokia on
the first place and Cross on the second place (Bangah, 2012).
Although has been critized by number of studies like
Lauterborn (1990), propovic (2006), Moller (2006), and
fakeideas (2008), 4p remain staple of the marketing mix (Goi,
2009). Yudelson 1999 in Gandolfo Dominici redefined product
as: all the benefits through time that the user obtains from the exchange.
Positioning is a technique of how marketers try to create
image or identity of a product, brand, or company in
consumers’ mind. It is a matter of perception where the
product is on a market-how consumers see throughout the
product and how they compare it to the competitors
(marketing.co.id, 2012). Hence, consumers are more interested
in having exclusive product that make them different from
others because they belief that the product they are using
will represents their personality (Azad, Karimi, & safei,
2012).
Set the pricing for artistic products and activities
should considering and following the current logic trend
(Shahhosseini, 2011). Where there is a monopoly, the price
will be higher. A company can set a higher price to segment
which has high sales power and give lower price to segment
with lower sales power (marketing.co.id, 2012). Yudelson,
(1999) in (Dominici, 2009) explains price as everything given
by the acquirer in terms of money, time, and effort given to
obtain the product. Consumers assume that the evaluation of
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products’ condition is based on its pricing policy. The
product’s marking on consumers’ mind will be influenced by the
combination of the advertisement, distribution channel, and
brand equity. (Azad, Karimi, & safei, 2012).
The distribution policy set by company will help the
product penetration to the market (Azad, Karimi, & safei,
2012). After product is being penetrated, advertisement and
promotion takes a high role to built, promote a product, and
als create perception of trust on the customer and built a
purchase relations (Dominici, 2009). The more advertisement
release to the market, the better market exposure will be, and
the bigger awareness on market characteristics will be (Azad,
Karimi, & safei, 2012).
Along with brand equity, marketing mix with its elements
(product, price, place, promotion) are a fundamental
components of a marketing plan (Shahhosseini & Ardahaey, 2011)
to determine customers’ buying decision (Furaiji & Malgorzata
Tatuszriska, 2012).
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Figure 1. The Black Box Model of consumer behavior. Adapted
from “marketing” by W. Keegan, S. Moriarty, T. Duncan, 1992,
p. 193. Englewood Cliffs, NJ: prentice-Hall.
I.1. Research Framework
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6
Theory andLiteratureReview
Five maindimensions
PlacePriceProduct Promotion
BrandEquity
Customer BuyingDecision
QuantitativeAnalysis
Research Findings
Conclusion andRecommendation
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II. METHODOLOGY
II.1. Subject and Study Design
The target population of this research is local President
University students in Jababeka, Cikarang Baru batch 2009 to
2012. By using multiple regression sampling method because the
total population of students who are using Samsung Android
smartphone was unknown, the total sample of this research was
83 students. Data collection was done by spreading
questionnaires to random 80 male and female students age 18 to
23 who were suing Samsung android smartphone in November 6 to
10, 2012. This research was done in 13 weeks.
II.2. Instruments
The data employed to analyses the determine factors that
influence students choice of buying Samsung android smartphone
was collected through a marketing survey. The instrument used
to collect the primary data was a questionnaire. This tool was
selected because of its numerous advantages since each
respondent would receive the same questions. Questionnaire can
reduce error made by interviewer while recording the
responses, quarantee confidentiality and respondents could act
without any fear or embarrassment (Furaiji & Malgorzata
Tatuszriska, 2012). The questions were divided into two
segments as follow:
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1. The first part will be demographic questionnaires
consist of name, age, gender, and income.
2. On the second part, there will be 21 questions under 5
independent variables (product, price, place,
promotion, and brand equity) and 4 questions under
dependent variable of customer buying decision.
On the second segments responses were measured on a 5
point likert scale (Likert, 1932) in (Azad, Karimi, & safei,
2012). 5 point on the likert scales are strongly disagree (1),
disagree (2), either agree nor disagree (3), agree (4), and
strongly agree (5).
PRODUCT (X1) 1 2 3 4 51. I am satisfied with the design of
Samsung android smartphone2. I buy Samsung Android smartphone
because the model is up to date and
fashionable3. I am satisfied with the features
(applications, multimedia, camera,
sound, etc) Samsung android smartphone
has4. Samsung android smartphone is easy to
use and hold (firm, fit on the right
size)5. I buy Samsung android smartphone as
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telecommunication device (call, text
message, email, read document, business
activity)6. I buy Samsung android smartphone as
entertainment device (multimedia,
social network, games, fashion use)PLACE (X2)
7. I can easily find a place to buy
Samsung android smartphone8. I can easily find place to repair
(service) my Samsung android smartphone9. I prefer buy Samsung android smartphone
directly at store than at online shopPRICE (X3)
10
.
Samsung android smartphone’s price is
affordable11
.
For the product’s value offered, the
price set is not expensive12
.
Samsung android smartphone’s price is
more preferably than other smartphone
with similar qualityPROMOTION (X4)
13
.
Samsung android smartphone TV ads is
very attractive14
.
I like Samsung android smartphone’s
endorser (someone who become model in
an ads)
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15
.
I want to buy Samsung android
smartphone after watching its TV ads16
.
I like Samsung android smartphone’s
posters and billboardsBRAND EQUITY (X5)
17
.
I buy Samsung android smartphone based
on my colleagues’ suggestion18
.
If I want to buy a smartphone, I will
think to buy Samsung android smartphone
on the first place19
.
I buy Samsung android smartphone
because I like the name20
.
I buy the brand Samsung Android
Smartphone because it is a worldwide
brand21
.
I like Samsung’s company logo
CUSTOMER BUYING DECISION (Y)22
.
I will buy Samsung Android smartphone
if my current’s smartphone is broken
and can not be repaired23
.
I buy Samsung Android Smartphone to
fulfill my telecommunication device
need24
.
I prefer to buy Samsung android
smartphone than other products
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25
.
In overall, I’m satisfied with Samsung
android smartphone product
II.3. Substantial Analysis
The data were evaluated by using specialized software –
the Statistical Package for Social Sciences (SPSS) ver. 17.0
with factor analysis approach to construct the data.
II.4. Hypothesis
The hypotheses formulated after reviewing the relevant
literature are:
H1: Product factors have a strong association with consumer
behavior.
H2: Place factors have a strong association with consumer
behavior.
H3: Price factors have a strong association with consumer
behavior
H4: Promotion factors have a strong association with consumer
behavior.
H5: Brand Equity factors have a strong association with
consumer behavior.
Hypotheses testing were confined to the primary data collected
from President University area.
IV. RESULT
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IV.1. Respondents’ demographic analysis
Among all samples collected from President University
students who lived in President University Student housing and
rented house nearby, about 66,5% of the participants were
female, and the remaining 33,7% were man. 57.8% of the
participants were 20 years or younger, while 42.2% of the
participants aged between 21 to 25 years. 26,5% were having
income bellow Rp. 1.000.000,- , 38.5% were having between Rp.
1000.000,- to Rp. 2.000.000,- and 32% were having income above
Rp.2.000.000,-
IV.2. Data processing
Figure 1. KMO and Bartlet’s test
KMO (Kaiser-Meyer-Olkin) and Bartlett’s test is 0.633 ,
above 0.5, and significant is 0.00, bellow 0,05 which means
this research is eligible for using factor analysis (Maholtra,
2012).
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Figure 2. Realibility statistics
Cronbach Alpha (a measure of internal consistency or how
closely related a set of items are) was used to assess the
inter reliability for each variables, has been Calculated as
0.727 which was enough above the minimum desirable level
(0.6). It means that the items have a relatively high degree
of internal consistency (note that a reliability coefficient
of 0.70 is considered ‘acceptable’ in most social science
research (Hair et al., 2006) in (Furaiji & Malgorzata
Tatuszriska, 2012). There were 6 questions bellow 0.3,
nevertheless since Cronbagh alpha if item deleted scores were
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good, those 6 questions could be avoided to be taken away
because it also has impact in customer buying decision.
Figure 3. Total Variance Explained
In this table, From 5 variables (product, price, place,
promotion, brand equity) could influence customer buying
decision as much as 56,2% (Maholtra, 2012).
Figure 4. Component matrix vs rotated component matrix
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In rotated component matrix, out of 21 questions from
independent variables, 6 questions were taken. In Reproduced
correlation table explains the the percentage numbers
correlated, and only questions with above 0.5 were used, other
would be taken (Maholtra, 2012).
Table 2. List of questionnaires taken
Numbe
r
Questions
4. Samsung android smartphone is easy to use and hold
(firm, fit on the right size)5. I buy Samsung android smartphone as telecommunication
device (call, text message, email, read document,
business activity)6. I buy Samsung android smartphone as entertainment
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device (multimedia, social network, games, fashion use)8. I can easily find place to repair (service) my Samsung
android smartphone18. If I want to buy a smartphone, I will think to buy
Samsung android smartphone on the first place21. I like Samsung’s company logo
Table 3. Mean Analysis
Factors Total Weighted Average
X1 4.38 (brand equity)
X2 4.00 (product)
X3 3.68 (promotion)
X4 3.43 (place)
X5 2.91 (price)
Criteria used to assess respondents’ answer in Likert scale:
Strongly Agree (SA) 5 Scores
Agree (A) Scores
Moderate (M) 3 Scores
Disagree (D) 2 Scores
Strongly Disagree (SD) 1 Scores
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Formula used according to Riduwan (2003) is used to calculate
the result:
Long Interval class = range
Number of Interval class
Where,
Range = High Scores – Low scores
Number of Interval Class = 5
Based on the formula above, the long interval class will be:
Long interval class = 5 – 1 8
5
So, the interval of reference group assessment criteria is as
bellow:
1.00 – 1.79 = Very Poor
1.80 – 2.59 = Poor
2.60 – 3.39 = Moderate
3.40 – 4.19 = Good
4.20 – 5.00 = Very Good
Guidelines to determine the mean value category:
Very Poor Poor Average Good Very
Good
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1.0 1.80 2.60 3.40
4.20 5.00
Mean analysis is used to know the dominant factor that
influence the customer buying decision of Samsung android
smartphone. In mean analysis the new variables were arranged
from the highest score to the lowest one. Based on mean
analysis, brand equity (X5) with mean score 4.38 and product
(X1) with mean score 4.00 were the most dominant factor that
influence customer buying decision of Samsung android
smartphone, followed by promotion (X4) with mean score 3.68,
place (X2) with mean score 3.43 and price (X3) with mean score
2.91.
Samsung has strong brand equity in customers’ mind. It
could defeat such a strong brand like Motorola and Blackberry.
As there was a surge in internationally visibility of Korean
culture and entertainment, strengthen its brand awareness
among Y generation by using underground marketing and
sponsoring Olympic Games 2012. Customers like to buy a
worldwide brand because it would increase their prestige.
Brand equity aspect is stressing more on the intrinsic value
of the product since young generation like to be different by
using a certain brand or new products. They believe what
product they use represent their personality.
For product, customer already satisfied enough with the
quality of the product. Despite the short battery life and the
unavailability of the official case, in term of operating
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system, multimedia, features and touch screen sensibility and
application were already satisfy customers. Another aspect of
the product which could be both the advantage and disadvantage
of Samsung android mobile phone is the product types. Samsung
released too many types of smartphone from Galaxy Young
series, Galaxy W series, Galaxy Ace series, and Galaxy S
series. It was good in the aspect of positioning product in
which Samsung targeted its market from middle-lower society to
middle upper society. But on the other hand, Samsung lost its
prestige since its exclusiveness is decreasing because its
segmentation is too huge. Customer like using something
special that made them different from others.
For promotion, Samsung already tried a lot of effort in
advertising and IMC. Samsung released a lot of article in mass
media, put billboard in strategic place, put TV ads, and
interactive marketing. With its aggressive marketing campaign
stressing on its greater variety of product, Samsung
successfully embrace all level of customers. Samsung also
sponsored many international events like Olympic Games 2012 in
London and did guerrilla marketing.
For place aspect especially retail and after sales
service, Samsung has done well with it. Customers can easily
find place to buy Samsung android smartphone. Samsung also
built customer service center in almost every city in
Indonesia. So whenever customers need to repair their phone or
claim the guarantee, they could find it easily.
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For price, Samsung still can compete with its competitor
like Mito, HTC, and Blackberry. Customers felt they got what
they paid. But since the new types was keep being released
from time to time the price of the old products were
decreasing as well.
V. DISCUSSION
While in this research founded that brand equity,
product, promotion, place, and price were the most dominant
factor that influence customer buying decision (note that from
mean analysis those five independent factors has mean above
2.5). Other research done by (Furaiji & Malgorzata
Tatuszriska, 2012) at a private school in Iran shown that by
using multiple regression analysis, in one-way ANOVA approach
they founded that marketing mix elements were weakly
associated with the dependent variable. However, their in-
depth analysis founded that marketing mix elements were
strongly associated with the customer buying behaviors.
Another research done by (Azad, Karimi, & safei, 2012) in
Tehran founded that there was a positive and meaningful
relationship between marketing mix efforts and brand equity
towards customer buying decision.
Based on those comparisons, putting more advertisements
might help to get a better market exposure in which customers
would have more awareness in market characteristics and
specialty. Customers evaluate the product’s condition based on
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its intrinsic value (prestige, exclusiveness), features,
promotion released in both mass and social media, place where
they can buy the product, and the pricing policy.
VI. CONCLUSION AND FUTURE RESEARCH
This research contributes to the understanding of the
customer buying decision in the telecommunication industry.
The findings of the study indicated that two independent
variables (brand equity and product) are highly associated
with the dependent variables. The other two independent
variables (promotion and place) are fairly associated with the
dependent variables, while price is weakly associated. The
analysis in this research may help for the future research. It
is highly suggested that for the next research, the researcher
could gather more samples and precede it using multiple
regression analysis.
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