The Correlation between Purchase Decision to Product Design in Nokia

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CHAPTER I INTRODUCTION 1.1. Background of the Study Mobile phone is an electronic telecommunications device that is simple thinks that people can bring and have similar capabilities with a conventional fixed line. In Indonesia there are many mobile phone players like Motorola, Siemens, Nokia Samsung and Blackberry. For now Indonesia have 2 network that is GSM (Global System for Mobile Communication) and CDMA (Code Division Multiple Access). In Indonesia, business libration started since 1990, when government started the chance to tourist to mobile business phone with competition way. When GSM and CDMA come and change cellular technology generation that was already come to Indonesia. In 1995 Motorola produced mobile where the model is 5200, after that Nokia is launched the mobile phone in 1998 with the model is 1011. And then Iphone come to Indonesia in 2000 and blackberry come to Indonesia in with the product 8700 in 2004 with Indosat operator. Nokia Corporation is the biggest telecommunication producer in the world and the biggest in Filandia. The official office is in Espo city, Filandia, and everyone 1

Transcript of The Correlation between Purchase Decision to Product Design in Nokia

CHAPTER I

INTRODUCTION

1.1.Background of the StudyMobile phone is an electronic telecommunications device

that is simple thinks that people can bring and have

similar capabilities with a conventional fixed line. In

Indonesia there are many mobile phone players like

Motorola, Siemens, Nokia Samsung and Blackberry. For now

Indonesia have 2 network that is GSM (Global System for

Mobile Communication) and CDMA (Code Division Multiple

Access). In Indonesia, business libration started since

1990, when government started the chance to tourist to

mobile business phone with competition way. When GSM and

CDMA come and change cellular technology generation that

was already come to Indonesia. In 1995 Motorola produced

mobile where the model is 5200, after that Nokia is

launched the mobile phone in 1998 with the model is 1011.

And then Iphone come to Indonesia in 2000 and blackberry

come to Indonesia in with the product 8700 in 2004 with

Indosat operator.

Nokia Corporation is the biggest telecommunication

producer in the world and the biggest in Filandia. The

official office is in Espo city, Filandia, and everyone1

knows this company is mobile phone company product. Nokia

producing mobile phone in the whole market and first

protocol including GSM, CDMA, W-CDMA (UMTS).

Nokia come from a community that leaves in Emakoski River

in south Filandia. Nokia exist as a mills company by

Fredeik Idestam in 1865. And then they tried phone

business with Salora in 1979, where they launching Nordic

Mobile Telephone, international operator is the first

mobile phone. In 1981 Nokia created mobile phone, Mobira

Senator in 1982. And then they come to Indonesia in 1998

with model 1011.

The function of advertising is not the only promotion

(Kotler: 2000); but could be information to the product

or service or to company as a media to alert consumers to

the product and service. In a row economic growth,

advertising is very important because consumer potential

will attention about advertising from the product that

he/she will buy.

According to Richard Y. K. Fung (2007) popularly called

styling in fact there is almost no literature looking

into manufacturing flexibility with the process of

product styling. This turns out to be a research niche

because to style the exterior of a product becomes the

final criterion for developing successful products,

especially when the functional and quality of most2

products have been improve to be identically the same.

According to Springer style is embedded within and

manifested through technology and function. Technology

factors must be considered in the analysis of style and

in the search for regularities between form and process.

According to Kotler and Amstrong (2010) product is

something that can offered to market to make consumer

satisfy, including physical goods, service, people,

property, information and idea. Marketers can

clarification the product base on durability, endurance

and usefulness.

According to Kotler and Amstrong (2010), define a product

as anything that can be offered to a market for

attention, acquisition, use, or consumption that might

satisfy want or need. Product design includes label,

durability, unique, style, performance, persons, place,

and ideas or mixed of these entities.

Purchase decision is Consumer perceive risk in making a

purchase decision can be reduce by providing sufficient

information that reinforce the customer is positive

evaluation (Levmy & Weitz, 2009:110). Purchase decision

is the buyer is decision about which brand to purchase

(Kotler, 2008:140). After making a purchase, the customer

uses the product and then evaluates the experience to

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determine whether it was satisfactory or unsatisfactory

(Levy & weitz, 2009:111).

Consumer gain knowledge of the meaning, that the end of

this through their in the past of experience to a

product. When they use the product or they watch people

that using the product. Consumers learn they have

consistency that can help them to get the objective and

important point. Situation self-relevance is determined

by the physical and social aspects of the environment

around us to immediately active the consequences and

importance thus making the products and brand seen

personally relevant. Retrieved from

(http://www.nokia.com/global/about-nokia/investors/financ

ials/financials/)

Frigure 1.1 Sales data Nokia brand 2006-2011

So as the researcher can see the graph Nokia company is

going down every year. In this case writer want to show

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what is the causes of decreasing buying or profit of this

company.

1.2.Company ProfileIn 1865, mining engineer Fredrik Idestam sets up his

first wood pulp mill at the tammerkoski Rapids in south-

western finland. A few years later he opened a second mil

on the banks of the Nokianvirta River, which inspires hin

to name his company Nokia Ab in 1871. By the late 1970

and early 1980s it seems everything – from tom Selleck is

moustache to JR Ewing is list of enemies – is seriously

big. And as the mobile communications revolution starts

to gather momentum, the early handset continues the

trend. Retrieved from (http://www.nokia.com/global/about-

nokia/company/about-us/story/the-nokia-story/)

In 1912, arvid Wickstrom sets up Finnish Cable works the

foundation of Nokia is cable and electronics business. In

1960s, they were starting branching out electronics. And

1963, they starts build electronic device and developed

radio telephones for the army and emergency service –

Nokia is first foray into telecommunications. In 1987,

GSM (Global System for Mobile communications) is adopted

as the European standard for digital mobile technology.

With its high-quality voice calls, international roaming

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and support for text message, GSM ignites a global mobile

revolution

(http://www.nokia.com/global/about-nokia/investors/financ

ials/financials/)

1.2.1 Company structure

Figure 1.2 Company Structure

1.2.2 Company vision and strategy

Nokia is mission is simple: connecting people. Our goal

is to build great mobile products that enable billions of

people worldwide to enjoy more of what life has to offer.

Our challenge is to achieve this in an increasingly

dynamic and competitive environment (Nokia.com)

Nokia is strategy is about investing in and ensuring

Nokia future. “I have incredible optimism,” said Stepehn

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Elop as Nokia President and CEO, “because I can see fresh

opportunity for us to innovate, to differentiate, to

build great mobile products, like never before, and at a

speed that will surpass what we have accomplished in the

past.” (Nokia.com)

1.3.Problem IdentificationWhen GSM and CDMA come and change cellular technology

generation that was already come to Indonesia. In 2008

there are Nokia having decreasing they profit until 2011.

When 2008 blackberry is new comers in Indonesia, they are

produce new brand with a new design in the product. They

produce with a good system and they have a good

communication selves that we call is blackberry

messenger. Nokia have that communication too, that

costumer call is whatup messenger. But it is not exist

like blackberry messenger. It is same with Iphone, they

have a good design with a good style. Now researcher want

to know in the product design side, that are have a

correlation between product design and purchasing

decision or that are no correlation between product

design and purchasing decision.

According to Chitale (2006) Product design deals with

conversion of ideas into reality and as in other forms of

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human activity, aims at fulfilling human needs. A

designer does not usually produce the goods or service

which immediately satisfy consumer is needs. Rather, he

produces the prototype which is used as a sample for

reproducing the particular goods or services as many

times as required.

Product design is that producer made something to attract

consumer to buy the product. Purchasing decision is when

the costumer wants to buying something that they need

he/she will follow the process. Such as need recognition,

information search, consuming and post-purchasing.

1.4.Statement of the ProblemBased on the case above, researcher states the problem is

1. What is the correlation between product design and

purchasing decision?

2. How big the correlation between product design and

purchasing decision is?

1.5.Research Objectives1. To know the correlation between product design and

purchasing decision

2. To know how big the correlation between product

design and purchasing decision is

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1.6.Theoretical Framework

Independent Variable

Dependent Variable

Figure 1.3. Theoretical FrameworkSource by self-construct based on

(Kotler)

According to Kotler (2009) Product design could be

disqualification by label, unique, style, durability.

1.7.Scope and Limitation of the StudyThe scope and limitations of the research is made because

of to make the topic and the result into more details.

This research will focus in to analysis factors which can

influence student to purchase Nokia Mobile phone. The

respondent of this research would be Indonesian Student

of President University in batch 2010 and who using Nokia

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Purchase Decision(Y)

Product

DesignLabel (X1)

Unique

(X2)

Style (X3)

Durability

(X4)

mobile phone regarding to get the specific factors that

influence young generation in order to purchase the Nokia

product. Thus the limitation of this research is focus

only to the Nokia mobile phone sales in 2008-2011 is

product design.

1.8.HypothesisH0: Product design do not influence the sales of Nokia in

Indonesia

H1: Product design is influence the sales of Nokia in

Indonesia

1.9.Definition of TermProduct design: is

Label is one of the most crucial steps in the process of

building a stable pattern of deviant behavior is likely

to be the experience of being caught and publicly labeled

as a deviant.

Unique is pattern that differentiates the product with

another competitor. Product unique will make consumer

easier to identifying the product and that will make

consumer can more interesting to buy and because of that

can easier to identify the product to consumer.

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Style is subjective measure, which describes how the

product looks and feels to the buyer.

Durability is measure of product is expected operating

life under natural or stressful conditions. This valued

attribute to certain products. Purchase decision is

CHAPTER II

LITERATURE REVIEW

2.1 Theoretical descriptionAccording to Kotler and Amstrong (2010), define a product

as anything that can be offered to a market for

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attention, acquisition, use, or consumption that might

satisfy want or need. Product design includes label,

unique, style, performance, persons, place, and ideas or

mixed of these entities.

2.2 Product attributes definitionThe product attributes can give a clear clue about the

product. In order to give a good clue for the product,

the writer supposes the definition of the product

attributes from some specialist:

Whereas according to Kotler and Amstrong (2010), the

product attribute is a development of product and service

that giving a function definition that they insipid.

2.2.1 Product attribute element

According to Kotler and Amrtrong (2010), product

attributes have three important categories which are

product quality, product feature, and product design.

Product quality is according to the ability of a product

to perform its functions. Good quality will impact and

give some trust to the consumer. Product features is

competitive tools which give some differentiation to a

product with the other competitive product. For example,

the feature is competitive toll for the company is

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product. Product design has an own concept about the

product. According to the design, it’s a special totality

that it could influence the presentation of product

function.

2.3 Product designAccording to Lambert M. Surhone (2010), product design

deals with the conversion of ideas into reality and the

other forms of human activity, aims at fulfilling human

needs. A designer does not usually produce some goods or

services which immediately satisfy the consumer needs.

Rather, it produces the prototype which is used as a

sample for reproducing of the particular goods or

services as many times as required. A design may be a

pattern on upholstery or a dress in fashion world. If the

producer believes that the sufficient number of customers

will be satisfied by the product, then mass production of

the item or services may be taken by the production

department.

Design is the factor that has to get more attention from

the management, especially to develop the product team.

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Because the target is not least, they think about the

design of the product. According to Kotler and Amstrong

(2009), define a product as anything that can be offered

to a market for attention, acquisition, use, or

consumption that might satisfy want or need. Product

design includes label, durability, unique, style,

performance, persons, place, and ideas or mixed of these

entities.

2.3.1 Label

Related to layouts designs are studies which is dealing

with physical product labeling. Capturing eye movements

over products arrange on real or mock supermarket shelves

may require a head-mounted eye tracker (Li et Al (2006)).

Alternatively, label design may be compared by viewing

different design on the desktop or background.

a. Brand label, is the name of product which is given

to the product in the parcel.

b. Descriptive label is the label that giving an

objective information of product and another

characteristic which related with the product.

c. Label grade, is the label that giving identification

about the product, judge quality with letter,

number, and word.

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According to John Wiley (2007), labeling was mainly

developed in the fields of criminological and health

research during 1960’s. Marked as an important extension

of symbolic interactionism, which deals in many ways with

some of the major problems, we encountered with Goffman.

It is most associated with Edwin Lenert and Howard

Becker. Labeling theory, the idea about the meaning of

selves, plays a key role in social life. Yet its general

orientation is compatible with more macro understandings

of how culture works.

Based on Jane Smith (2005), one of the most crucial steps

in the process of building a stable pattern of deviant

behavior is likely to be the experience of being caught

and publicly labeled as a deviant.

2.3.2 Unique

According to Kotler (2009), product is something that can

be offered to the market to make consumer satisfy,

including physical goods, service, people, property,

information and idea. Marketers can clarify the product

based on durability, endurance, and usefulness. And

consumer consists of some various classes of people who

have taste. Therefore, the merchant may choose one of the

ways below:15

1. Provide one variety goods.

2. Provide a variety of groups with many similarities.

3. Provide plenty of variety and types of goods.

Based on Rosen (2005), product unique is a pattern that

differentiates the product with another competitor.

Product unique will make the consumer to be easier for

identifying the product and it will make them more

interesting for buying the product because it becomes

easier for them to identify the product. According to

International Monetary Unique product, a product is only

manufactured once in the specification of an individual

customer. A unique selling proposition (UPS) is a

description of the qualities, which is unique for a

particular product or service. And that differentiate it

in a way which will make the customers purchase it rather

than it is rivals (Retrieved from

http://www.economist.com/node/14301696_) based on Kotler

(2008).

2.3.3 Style

Based on Kotler (2009), style is subjective measure,

which describes how the product looks and fills to the

buyer. Normally, the car buyers select a premium type for

the products, which are attractively styled. Some16

products are yawn producing rather than eye-catching.

Exceptional styling has the advantage of creating

products distinctiveness that makes it hard for the

competitors to imitate. Packaging is also a component of

style of consumer products. According to Lee et Al.

(2009), to represent the style in consumer life, there

are 3 variables to style:

1. Fashion consciousness is a consumer lifestyle that

they are young people who have better educate and

have higher incomes. Product innovative will be seen

as a part of a fashionable lifestyle.

2. Leisure orientation is a lifestyle that consumer

regards as a people who will try a new style. In

this variable people who will adopt a higher

technology or people who always update their

technology.

3. E-Shoppers inclined an innovator, they are happy the

way e-channel offered, and they have more shopping

experience then people who do not buy in e-shoppers.

According to Richard Y. K. Fung popularly called styling.

In fact, there is almost no literature which looking into

manufacturing flexibility with the process of product

styling. This turns out to be a research niche because

the exterior style of a product becomes the final17

criterion to developing a successfuls product, especially

when the functional and the quality of most products have

been improved to be identically same. Based on Springer,

style is embedded within and manifested through

technology and function. Technology factors must be

considered to the analysis of style and to the search of

regularities between form and process.

2.3.4 Durability

According to Kotler (2009), durability is a measure of

product which is expected to operating life under a

natural or a stressful condition. This value attributes

to a certain products. For example, the mobile phones

Nokia manufacture claims that its mobile phone has a long

lifespan. Similarly, the Duracell battery manufacturer

claims that their products have a long lifespan. Most of

time, the customers will pay more for such of those

products. Based on Durability, the products can be

classified as:

a. Durable goods

b. Non-durable goods.

a. Durable goods

Durable goods are products which are used for long

term in months or years together. For examples, the18

products are refrigerator, car, and washing machine.

These goods generally require more of personal selling

efforts and have a high profit margin. In case of

these goods, seller is a reputation. Also presale and

after-sale service are important determinants of

purchase decision.

b. Non-durable goods

Non-durable goods are products that are normally

consumed in one way or last for a few uses. For

examples, the products are soap, salt, pickles, and

sauce. These items are consumed quickly and the

consumers purchase these goods more often. Those items

are generally made available by the producer through

large number of convenient retail outlets. Profit

margins usually keep it low and heavy on these items.

Advertising is made to attract the people toward their

trial and use it.

According, to The MIT Press Consumer, gross surplus is

fixed as long as the product “works”. Then, quality is

measured by the amount of time between purchase and

breakdown of the product. According to Edward Elgar,

divides product durability with three goals in mind.

First, we wish to illustrate the extension of the

paradigm to an intertemporal setting. By its nature,19

product durability has a potential strategic value only

in interteporal setting. Second demonstrate it’s how the

paradigm can be used to endogenize market structure.

Third, examine the nature of bias, if any, in product

durability which strategic choice of durability entails.

2.4 Purchase DecisionConsumer perceives risk in making a purchase decision. It

can be reduced by providing sufficient information that

reinforces the customer, is a positive evaluation (Levy &

Weitz, (2009)). Purchase decision is the buyer decision

about which brand to purchase (Kotler (2009)). After

making a purchase, the customer uses the product and then

evaluates the experience to determine whether it was

satisfactory or unsatisfactory (Levy & weitz, 2009:111).

2.4.1 Purchase decision process

Purchase decision process is a process that can solve a

problem (John Dewey, Engle, 2000). The key of the

purchase decision process is an integrated process that

knowledge could be combined to evaluate many alternatives

and finally to choosing the product. And the result of

the choosing is a cognitive that reputed as intention

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behavior which can be referred then as the plan to be

bounded in one or more behaviors (Peter & Olson 2002).

2.4.2 The steps in Purchase decision process

Engel (1995) disports the purchase decision process in 6

steps:

Need recognition is the process that happens in these

steps. The created of this perception will have an

asymmetry between wanted condition and true condition.

Need recognition process is an important step because the

consumer will fill the different condition of the product

as a problem or not in this step, until they can make a

decision to choosing. After that, they’re looking for

some information to search after they know what their

needed is. The consumer will search the relevant

information from their self memory. If the consumer fills

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Need recognition

Information search

Evaluativeof alternativ

PurchaseDecision

ConsumingEvaluative of alternatives after

not enough, they will search from the external that is

the information which search from them.

Supposed, they will ask to their friends, their family,

or from other sources such as the consumer magazine and

the advertising. Market source supposes from the store

staff or could immediately be trying a product.

Evaluation alternative, in this step, the consumers will

be comparing the alternative after they’re buying the

product, evaluate the product, and choosing the best

product. And then, in this process, the purchase happens

when the consumer’s choosing how to buy the product when

they will buy the product, which store they have to buy,

and what they have to buy.

Consumer is not rare choosing to buy the different

product from what they already planed, because there is

another factors such as a discount that giving more

profit to the consumer. And then they consume the

product. In this step, the consumer will decide how to

consume the product that they have already bought.

The consumer could be using the product after they have

bought the product, or they will decide to save the

product for a while or they can keep the product in a22

period of time. And the last, the consumer will have some

evaluation after buying. In this step, they will evaluate

the product about how far their knowledge of the product

and how far that product satisfy the consumer. The

consumers will compare it and they hope when they do the

process of buying with the performance that the product

already gave. A satisfied respond will be appeared, if

the consumers fill the performance the product is good or

not.

According to William M. Pride (2011), the consumer buying

decision is beginning with the problem of recognition

through purchase and post-purchase evaluation. And then,

the consumers examine the situational of influence-

surroundings, time, purchase reason, buyer mood, and the

condition that will affect the purchasing decision. The

process of purchasing decision is problem recognition, an

information search, an evaluation alternative, a

purchase, and a post-purchase evaluation.

According to Springer, the process of buying decision is

becoming an active shopper, narrow the product choices,

select a retailer, and choose an item for purchase. With

regard to the same case (the buying decision). Charles W.

(2011) defines, there are five processes for buying23

decision, which are recognition, an information search,

an evaluation of alternative, a purchase, and the last

thing is a post-purchase evaluation.

2.4 SalesAccording to Karl Webber (2006), regulator was generally

unaware of the problematic sales to military member

because personnel rarely forwarded service member

complaints to them. Sales were also hampered by lack of

standardized data showing whether customers were

benefiting from their purchase. Although recognizing is a

greater need for sharing information on violations of its

solicitation policies and service member complaints, DOD

has not revised its policies to require that information

will be provided to financial regulator nor has it

coordinated with these regulators and its installations

on appropriate ways that additional sharing can occur.

According to Melissa C. (2009), for schools, churches,

sports team, events and corporation products are hot. If

you want to get into the highly profitable business of

selling custom printing, according to Kogan, the best way

to understand sales promotion is from inside. Get

involved in promotion: collect coupons, send in for

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offers and seek out special deals. Sales promotion is

found whenever a supermarket offers “three for the price

of two”, a pub offers a happy hour, insurance or charity

mailer offers a free pen for replaying or a product

offers a free draw.

On the mobile phone too, if the permission has been

given, the offers will appear for drinks happy hours and

estate agents latest houses and flats coming on to the

market. Whatever you allow will be appeared. Now, the

mobile phone also can be used to respond the

advertisement or texting a number with a code word when

you buy a voucher mobile phone, so they will send a

feedback that includes access to a sales promotion

through a bar code reader at the point of purchase.

Based on Kotler (2010), although most sales promotion

increases sales, most lost the money. One analyst

estimated that only 17 percent of a given set of sales

promotion campaigns were profitable. Sales promotion only

attract brand switch looking for a lower price, who

naturally abandon the brand when another brand goes on

sale.

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CHAPTER III

RESEARCH METHODOLOGY

3.1. Research MethodIn this research, the writer uses a quantitative research

method. It is used to know the correlation between the

product quality and the purchase decision. The following

definition of quantitative research method, taken based

on Goubner,D. Et al (2008: 21). This research conducts

with this method because this method is suitable with the

data, and the outcome of the calculation is very

objective to be analyzed. The purpose of this research is

to measure the analysis of correlation between the

product design and the purchase decision.

3.2. Time and Pace of ResearchThe research of this study was conducted by spreading

some questioner at President University in Cikarang. The

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questioner was distributing to the student President

University during spare-time.

Table 3.1

Activities table

Activity Weekly1 2 3 4 5

Proposal

thesisSearching

dataCollect the

dataThesis

SubmitThesis

Defence

3.3. Research instrumentIn the purpose of data collection, the writer uses the

research instrument that commonly used in a quantitative

research method. Regarding the instrument the writer use

questionnaire, where the questionnaire is constructed

based on literature review.

3.3.1 Questionnaire

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The writer will use that questionnaire to collect the

data in this research. According to Richardson, et al

(2005), questionnaire is a survey instrument that gathers

the required information for further investigation. A

questionnaire consists of a set of questions that will be

presented to the respondents. The reason of choosing the

questionnaire it is faster and cheaper to collect the

data. The researcher can also complete the survey in the

targeted time as well as in the lowest cost.

3.3.2 Question form

The dependent variable is purchased a decision. In this

study, the writer is going to explore the influence of

independent variable which is product at Nokia’s Company.

The questionnaire consists of three parts, the part A is

about the respondent identity (gender, age, marital

status, range, of their income), part B is contains about

the quality which is consist of 4 questions. And the last

part is the questions regarding purchasing decision at

Nokia Company which is consist of 5 questions.

3.3.3 Instrument Distribution

This research uses self-administered questionnaires,

which means the questionnaires delivered to the

respondent and by the time respondents finish answering28

the questions, the questionnaires will be submitted to

the researcher. Research chooses self-administered

questionnaires because of some reason:

1. Researcher can explain more detail of each question,

so it can prevent misunderstanding.

2. Reducing an error sampling as a result of returned

questioner.

The researcher will wait for the respondents while they

fill the questionnaire in order to when he/she did not

understand the question so research will cover or explain

the question slowly and clearly.

3.3.4 Scaling

This research uses Likert scales. A Likert scales is the

most frequently used variation of the summated rating

scale. Summated rating scales consist of statements that

express both of the favorable and unfavorable attitude

toward the object of interest (Cooper and Schindler,

2008). The participant is asked to agree or disagree by

each statement. The respondent will answer the questions

which is provided by the research in the questionnaire.

There are five points scales that will be used in the

questionnaire, “strongly, agree, neutral, disagree, and

strongly disagree”.29

Table 3.1

Likert scale

Description Score

Strongly agree 5Agree 4

Neither agree not agree 3Disagree 2

Strongly disagree 1

Source by Cooper and Schindler (2008)

3.3.5 Controversy for Likert Scale

Researcher understands the controversy of using methods

for continues data analysis on the ordinal Likert data.

The consensus seems to use the Chi-Squared, Wilcox, or

Kruskal-Wallis method depending on the situation. None of

these researchers are very familiar with, so the Likert

scales is an ordered, one-dimensional scale from which

respondents choose one option that best align with their

view. Ordinal scales order or rank things.

For instance, an item may a student to rank ten types of

classroom activities from the most interesting to the

least (from 1 until 10). The most interesting activity

would be first, follow by second, third, and four. While30

the order is clear on such a scale, it is not clear what

the distances are along the ordering. So the ordinal

scales show us the order, but not between the distance

and the rankings. Sometime, such ordinal scales are also

called ranked scales. Interval scales show the order of

things, but with an equal between the points on the

scales. Thus, the distance between score of 50, 51, 52,

53 and forth are all assumed to be the same along the

scale. Test score is usually treated scales in language

research. Scales based on Likert items are commonly

treated as interval scales in our field.

3.4 Sampling DesignRichardson, et al (2005), defines sample is a subset of

the population being studied. In order to generalize from

a sample to a population, the sample must represent which

usually means that it is randomly selected.

3.4.1 Population

According to Cooper and Schindler (2008), “Population is

the total collection of elements about which we wish to

make some inferences”. Measuring the population is

important before start to collect the data. Because the

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population has to determine first before determine the

sample. This research held at Nokia Company. The

population is the buyer of Nokia’s product at President

University, Cikarang.

3.4.2 Sampling

In this research, the respondent is the student on Bach

2010 at President University. The amount of the taken

data is targeted to have a confidence level 95% and

margin of error 5%. And based on scrib.com, the solving is

a formula that can be used for calculating the sample

size:

n=

Zα2

2 p·q

e²Where:

n = sample size

N = population size

e = error percentage tolerable toward inappropriate

usage of the sample to represent the population; e=5%

The sample size for this research will be:

n=

Zα2

2 p·q

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n=(1.96) (0.75 )(0.25)

0.0025n=147

In this research, the researcher will use 100 samples

sizes because of the limit of time. The result of

computation will show the sample size and the researcher

will round it up to a certain number of respondents to

conduct the survey. In this case, the researcher will use

0.05 level significance or 96 degree of freedom.

3.5 Validity and Reliability TestingBefore calculating the data, the researcher has to find

the validity and reliability of the data. Hence, next

researcher will explain the method used calculate it.

3.5.1 Validity

In this research, the researcher uses a questionnaire to

collect the data. Then, after constructing the

instrument, the instrument should be testing it to the

sample where the population is taken. According to

Springer, validity is one or two most important

characteristics of a measuring in instrument. An

instrument is said to be a valid way of operationalizing

a construct if it really does measure that construct.

Validity testing can be measured by help of SPSS system

33

which is using person product-moment coefficient of

correlation. The equation as follow:

Where rix is a correlation product moment:

rix1=nΣix−ΣiΣx

√(nΣi2−(Σi)2 )(nΣx2−(Σx )2)

Where:

rix : Correlation between overall question instruments

Si2 : Variance answer of respondent to the instruments

to the i

Sx2 : Variance answer of respondent overall instrument

X∑ : The number of answer of respondents for the whole

instrument

i∑ : The number of answer of the respondents to the i

instruments

X∑ 2 : Number of answer of respondents for the whole

instrument squared

i∑ 2 : The number of answer of the respondents to the i

instruments squared

The basic of decision making:

a. If r positive, and r≥rtable the item of the

questionnaire is valid

34

b. If r negative, and r<table the item of questionnaire

is invalid

3.5.2 Reliability

Reliability testing is used to measure the reliability of

the instrument to use in the collecting the data.

Reliability has to do with the accuracy and precision of

a measurement procedure (Cooper and Schindler, 2008). So,

if the instrument is reliable, the researcher can use the

instrument in several times at the same object to collect

the data needed. In this research, the reliability test

uses a Cronbach’s alpha method. The equation as follow:

α=[ kk−1 ] [1−

∑Si2

Sx2 ]

Where:

k : the number of instruments in question

∑Si2: The amount of variance from each instrument

SX2

: Variance of the whole instrument

35

3.6 Data AnalysisIn analyzing the data, the authors define five variables,

namely:

1. Label as independent variable with notation X1

2. Unique as independent variable with notation X2

3. Style as independent with notation X3

4. Durability as independent with notation X4

5. Purchase decision is set as the dependent variable

wit notation Y

Each data X1, X2, X3, X4 and Y are given a ranking

according to the score obtained. The smallest amount is

given rank 1; the second smallest is rank 2; and so on.

Where score measured based on the measurement of Likert

scale, variable X and Y are measured in ordinal scales,

with details as follows:

Y=βo+β1X1+β2X2+ε

Where:

Y = Purchase decision

βo = A constant, the value of Y when all X values are

zero

β1-β4 = Coefficient

X1 = Label

X2 = Unique

36

X3 = Style

X4 = Durability

Then, after researcher got the result, there is some

measurement tools that used to find and to know the

correlation between the product and the purchase decision

based:

1. F test

F=∫i

2

∫j

2

Where:

ni = sample size i the population

nj = sample size from j population

∫i

2

❑ = sample variance from the i population

∫j

2

❑ = sample variance from the j population

F test is used to evaluate the influence of all

independent variables towards dependent variable

(overall). This method used to measure the existence of a

significant influencing independent (Product) toward

dependent simultaneously.

37

If Fcount <table at α = 5% significance level, so H0 accepted,

means that independent variables has no significant

influencing toward dependent variable simultaneously.

If Fcount <table at α = 5% significance level, so Ha accepted,

means that independent variable has significant influence

toward dependent variable simultaneously.

2. t Test

t=x−us√n

Where:

x = sample mean

u = hypothesized value for the population

s = sample standard deviation s= √∑ (x−x )²n−1

n = sample size

t test is used to evaluate the influence of independent

variable toward dependent variable individually.

If If tcount <table at α = 5% significance level, so H0

rejected and Ha accepted. It means that independent

38

variable has significant influencing towards dependent

variable.

If If tcount <table at α = 5% significance level, so H0

rejected and Ha accepted. It means that independent

variable has no significant influencing towards dependent

variable.

3. Classic Assumption Test

Classic assumption used to produce linear estimator, un-

bias, and to have a minimum variant (Best Linear Unbiased

Estimator = BLUE). These are the assumptions which are

used in this study:

a. Normality Test

Normality test are used to determine the normality

of the data that distribute in statistics. The

normality of data distribution can be determined from

residual value that normally distribute. Statistic test

taken based on a normal distribution, so before

analysis the data, it is required the normality. If the

assumption does not meet the target, it will influence

in conclude the conclusion, so the conclusion will not

reliable or deviate.39

b. Multicollinearity Test

Multicollinearity is the existence of a strong

relationship between independent variables in the

regression equation. The existence of Multicollinearity

will result in uncertainly estimation, thus directing

conclusion to receive null hypothesis.

Multicollinearity can be detected by using the value of

variance inflation factors (VIF) and tolerance. The

model is said a free form multicollinearity if the

value of VIF below 10 and tolerance above 0,1

(Widarjono, A., 2010).

c. Heteroscedasticity Test

Heteroscedasticity assumption is an assumption in

regression where residual variance is difference for

one observation to another observation (Santosa, P &

Ashari, 2005). Heteroscedasticity test is done by

viewing graph plot between value of dependent variable

(SRESID) and residual (ZPRED), where heteroscedasticity

can be seen by presence of specific pattern on the

graph.

40

3.7 Hypothesis TestingIn this research, the researcher uses a correlation

coefficient method to test the hypothesis.

1. F test

H0: β1, β2, β3, β4 = 0, means that there is no influencing

between independent variables (X) with purchase

decision (Y) at Nokia company in Cikarang.

H0 accepted if Fcount < F table at α = 5% significance level,

means that product design (label, unique, style,

durability) has no significant influencing purchase

decision of Nokia company in Cikarang.

Ha: β1, β2, β3, β4 ≠ 0, means that there is an influencing

between independent variables (X) with purchase

decision (Y) at Nokia company in Cikarang.

Ha accepted if Fcount > Ftable at α = 5% significance level,

means that product design (label, unique, style,

durability) has a significant influencing purchase

decision of Nokia company in Cikarang.

2. t Test

H0: β1 = 0, means that there is no influencing Product

design (label) (X1) with purchase decision (Y) at Nokia

company in Cikarang.

41

H0 accepted if tcount < ttable at α = 5% significance level,

means that product design (label) has no significant

influencing purchase decision of Nokia company in

Cikarang.

Ha: β1 ≠ 0, means that there is an influencing product

design (label) (X1) with purchase decision (Y) at Nokia

company in Cikarang.

Ha accepted if tcount > ttable at α = 5% significance level,

means that product design (label) has a significant

influencing purchase decision at Nokia company in

Cikarang.

H0: β2 = 0, means that there is no influencing Product

design (style) (X2) with the purchase decision (Y) at

Nokia company in Cikarang.

H0 accepted if tcount < ttable at α = 5% significance level,

means that product design (style) has no significant

influencing purchase decision of Nokia company in

Cikarang.

Ha: β2 ≠ 0, means that there is an influencing product

design (style) (X2) with the purchase decision (Y) at

Nokia company in cikarang.

Ha accepted if tcount > ttable at α = 5% significance level,

means that product design (style) has a significant

influencing purchase decision at Nokia company in

Cikarang.42

H0: β3 = 0, means that there is no influencing Product

design (unique) (X3) with purchase decision (Y) at

Nokia company in Cikarang.

H0 accepted if tcount < ttable at α = 5% significance level,

means that product design (unique) has no significant

influencing purchase decision of Nokia company in

Cikarang.

Ha: β3 ≠ 0, means that there is an influencing product

design (Unique) (X3) with the purchase decision (Y) at

Nokia company in Cikarang.

Ha accepted if tcount > ttable at α = 5% significance level,

means that product design (Unique) has a significant

influencing purchase decision of Tupperware product at

Nokia company in Cikarang.

H0: β4 = 0, means that there is no influencing Product

design (durability) (X4) with the purchase decision (Y)

at Nokia company in Cikarang.

H0 accepted if tcount < ttable at α = 5% significance level,

means that product design (durability) has no

significant influencing purchase decision of Nokia

company in Cikarang.

Ha: β4 ≠ 0, means that there is an influencing product

design (durability) (X4) with the purchase decision (Y)

at Nokia company in Cikarang.

43

Ha accepted if tcount > ttable at α = 5% significance level,

means that product design (durability) has a

significant influencing purchase decision at Nokia

company in Cikarang.

CHAPTER IV

ANALYSIS OF DATA AND

INTERPRETATION OF RESULT

4.1 Respondent CharacteristicIn this research, the researcher will distribute 100

copies of questioner to the consumer of Nokia brand at

President University. The questionnaire consist of six

part, part A contains the characteristic of respondents

who filled out the questionnaire, part B contains the

statements of respondent about label (X1), part C

contains the statements of respondents about style (X2),

part D contains the statements of respondent about unique

(X3), and part E contains the statements of respondent

about durability (X4) at President University Bach 2010,

while part F contains the statements of respondents about

purchasing decision on Nokia brand.

44

The researcher obtains data concerning the respondent is

characteristic at President University Bach 2010 as

stated in table 4.1:

Table 4.1Grouping Respondent by Gender

Frequenc

yPercent Valid

PercentCumulativePercent

Valid

Male 50 50.0 50.0 50.0Female 50 50.0 50.0 100.0Total 100 100.0 100.0

Source: primary data

Based on the table above, it can be concluded that the

total respondent, both men and women are 100 peoples.

Male respondent were 50 persons (50%) and female 50

persons (50%). Numbers of male and female are balance, so

it occurs because this product is widely to men and

women.

Table 4.2Grouping Respondent by Age

Frequenc

y Percent ValidPercent

CumulativePercent

Valid

<20 71 71.0 71.0 71.020-30 29 29.0 29.0 100.0Total 100 100.0 100.0

Source: Primary data

45

Based on table 4.2, it can be seen that the most

respondent are <20 years old groups as much as 71 people

(71%) of the respondents, age 20-30 years old as many as

29 people (29%).

Table 4.3Grouping Respondent by Major

Frequenc

y Percent ValidPercent

CumulativePercent

Valid

International Business 22 22.0 22.0 22.0

Banking and Finance 17 17.0 17.0 39.0

Accounting 22 22.0 22.0 61.0International Relation 14 14.0 14.0 75.0

Public relation 6 6.0 6.0 81.0IT 5 5.0 5.0 86.0Engineering 11 11.0 11.0 97.0Business law 3 3.0 3.0 100.0Total 100 100.0 100.0

Source: Primary data

Based on Table 4.3, in the majoring, it can be seen that

the most respondent is International Business and

Accounting where the respondents is 22 people (22%), for

Banking and Finance respondent as many as 17 people (17%)

of the respondents, major International Relation as many

as 14 (14%) people of the respondents, major Engineering

as many as 11 (11%) people of the respondents, major

Public Relation as many as 6 (6%) people of the

respondent, major IT as many as 5 (5%) people of the46

respondents, major Business law 3 (3%) people of the

respondents.

Table 4.4Grouping Respondent by Income

Frequenc

y Percent ValidPercent

CumulativePercent

Valid

Rp 1.100.000- Rp 2.000.000-

73 73.0 73.0 73.0

Rp 2.100.000- Rp 3.000.000

27 27.0 27.0 100.0

Total 100 100.0 100.0Source: Primary data

Based on table 4.4, it can be seen that most respondent

are Rp 1.100.000-Rp 2.000.000 as much as 73 (73%) people

of the respondents, income Rp 2.100.000-Rp 3.000.000 as

many as 27 (27%) people of the respondent.

Table 4.5Grouping Respondent by Knowledge

Frequency Percent Valid

PercentCumulativePercent

Valid

Ya 76 76.0 76.0 76.0Tidak 24 24.0 24.0 100.0

Total 100 100.0 100.0

Source: Primary data

47

Based on table 4.5, it can be seen that the most

respondents answered “yes” for group knowing about Nokia

as much as 76 (76%) people of the respondent. And the

rest it only 24 (34%) people of the respondents answered

“no”, who don’t know about Nokia.

Table 4.6

Grouping Respondent by Rank

Frequenc

y Percent ValidPercent

CumulativePercent

Valid

LG 8 8.0 8.0 8.0Blackberry 40 40.0 40.0 48.0Sony Erricson 10 10.0 10.0 58.0

Iphone 22 22.0 22.0 80.0Nokia 20 20.0 20.0 100.0Total 100 100.0 100.0

Source: Primary data

Based on table 4.6, it can be seen that most respondents

of rank are Blackberry group as much as 40 (40%) people

of the respondents, rank for handphone Iphone as many as

22 (22%) people of the respondents, rank for Nokia as

many as 20 (20%) people of the respondents, rank for Sony

Erricson as many as 10 (10%) people of the respondents,

rank for LG as many as 8 (8%) people of the respondents.

Table 4.7Grouping Respondent by Telephone Portable

48

Frequency Percent Valid

PercentCumulativePercent

Valid

1 14 14.0 14.0 14.02 45 45.0 45.0 59.03 41 41.0 41.0 100.0Total 100 100.0 100.0

Source: Primary data

Based on table 4.7, it can be seen that most respondents

of telephone portable that they have is group 2 as much

as 45 (45%) peoples of the respondents, and group 3 as

many as 41 (41%) peoples of the respondents, and group 1

as many as 14 (14%) people of the respondents.

Table 4.8

Grouping Respondent by Everhave

Frequenc

y PercentValidPercent

CumulativePercent

Valid

Ya 90 90.0 90.0 90.0Tidak 10 10.0 10.0 100.0

Total 100 100.0 100.0

Source: Primary data

Based on table 4.8, it can be seen that most respondents

of ever having Nokia brand, 90 (90%) peoples for the

respondent answered “yes”, and 10 (10%) people of the

respondents said “no”.

49

4.2 Result of Validity and Reliability Testing 4.2.1 Validity Testing

Validity testing of the data in this research in done

statically, that is using Pearson Product-moment Coefficient of

Correlation. This research will use the software SPSS

windows version 15.0 to test the validity. For testing

the validity of using the correlation coefficient

approach, is by correlating and calculate r ≥ r table

then the item is declared valid question.

Based on data gathered form questionnaire, the validity

result as follows:

Table 4.9Result of Validity Testing

Name of VariableCoefficientCorrelation

r Tablecriticalvalue= 5%

N=30 StatusLabel -1 .671 .3 ValidLabel -2 .387 .3 ValidLabel -3 .382 .3 ValidUnique -1 .587 .3 ValidUnique -2 .345 .3 ValidStyle -1 .477 .3 ValidStyle -2 .469 .3 ValidStyle -3 .398 .3 ValidStyle -4 .314 .3 Valid

Durability -1 .571 .3 ValidDurability -2 .329 .3 ValidDurability -3 .499 .3 ValidDurability -4 .537 .3 Valid

Purchase Decision-1 .412 .3 Valid

50

Purchase Decision-2 .541 .3 Valid

Purchase Decision-3 .305 .3 Valid

Purchase Decision-4 .453 .3 Valid

4.2.2 Reliability Testing

Reliability testing is intended to know the extent of the

result of the measurement is consistent or not. Test

reliability in this study will use a method Cronbach is

alpha. Here been done with help of SPSS software version

15.0 windows.

Table 4.10Reliability Statistics

Cronbach'sAlpha

Cronbach’sAlphaBased onStandardized

Item

N of Items

.834 .832 17

Based on the table 4.10, all variables have alpha value

above 0.80, so we can conclude that all the data are

reliable.

4.3 Result of Classic AssumptionBy using the multiple linear of regression models to

analyze data, multiple regressions can be called as a

good model/method. If the model was met some assumption51

then it called a classic assumption. Classical assumption

is required a testing to find out if results of the

regression estimation is completely done free of any

symptoms of multicollinearty and heteroscedasticity. In

this study, there are 3 kinds of assumption which are

used as follows:

4.3.1 Normality Test

The first classical assumption that can be the best test

is normality. Residual variable (standardized residual) that

normal distributed will lay around diagonal line. Based

on normal P-P plot shows standardized residual is located

diagonal line as shows on the picture below:

O bserved Cum Prob1.00.80.60.40.20.0

Expe

cted

Cum

Pro

b

1.0

0.8

0.6

0.4

0.2

0.0

Norm al P-P Plot of Regression Standardized Residual

Dependent Variable: Purcashing

Figure 4.1 Normal P-P Plot of regression Standardized

Residual

4.3.2 Multicolliniearity test

52

Tolerance is an indication of the percent of variance in

the predictor that cannot be accounted by the other

predictors, hence some small values indicate that a

predictor is redundant, and the values which are less

than 5 may merit further investigation. A Tolerance close

to 1 means there is little multicolinearity, whereas a

value close to 0 suggests that multicolinearity may be a

threat. This is referred to as the problem of

multicolinearity. It is a problem, as the X become more

highly correlated, it becomes more and more difficult to

determine which is X actually producing the effect on Y.

In the other side if the value of VIF> 5, it indicates

the occurrence of multicollinearity (David F., Patrick

W., Kent D., Phillip C (2008)).

Based on the result above, it could be explained that all

variable indicators which are used in this study if it is

free from multicollinearity (non-multicollinearity),

because the value of VIF < 10 and tolerance > 0.1 as

required in this research.

4.3.3 Heteroscedasticity test

53

Regression Standardized Predicted Value210-1-2-3

Regr

essi

on S

tude

ntize

d De

lete

d (P

ress

) Re

sidu

al3

2

1

0

-1

-2

-3

Scatterplot

Dependent Variable: Purcashing

Figure 4.2: Heteroscedasticity

4.4 Description of VariableBased on the questionnaire, it has been distributed to

the respondents at President University Bach in Cikarang.

To facilitate the assessment of respondents answers,

there will be criteria based on Likert scale as follows.

Table 4.11

Likert Scale

Strongly Agree SA 5 scoresAgree A 4 scoresModerate/Neutral N 3 scoresStrongly Disagree SD 2 scoresDisagree D 1 score

Source: Cooper and Schindler (2008)

4.4.1 Respondent on Label (X1)

54

Label is the label of the product that can make a

characteristic among other colors, image and type. The

response of the respondents is about the question that

related to quality as follow:

Table 4.12

Respondent on Label (X1)

Quest

ion

No.

Stron

gly

Disag

ree

Disag

ree

Neutr

al

Agree Stron

gly

Agree

Mean

F

r

% F

r

% F

r

% F

r

% F

r

%

1 8 8.

0

9 9.

0

7 7.

0

2

4

24

.0

5

2

52

.0

4.030

2 1

0

10

.0

3 3.

0

8 8.

0

2

7

27

.0

5

2

52

.0

4.080

3 5 5.

0

1

2

12

.0

1

0

10

.0

2

7

27

.0

4

6

46

.0

3.970

Avera

ge

Mean

4.026

The tables above shows that most of customers are

strongly agree with the statement in the questioner about

the quality of Nokia brand is good and secure. It proves

55

and can be seen from the average mean of Label variable,

which 4.026.

4.4.2 Response of Respondent on Unique (X2)

Unique is part of the product that can make the consumer

attracts to buy and to pattern. That differentiates the

product with another competitor. The response of

respondents is about the question related the price as

follow:

Table 4.13

Respondent on Unique (X1)

Quest

ion

No.

Stron

gly

Disag

ree

Disag

ree

Neutr

al

Agree Stron

gly

Agree

Mean

F

r

% F

r

% F

r

% F

r

% F

r

%

1 1

3

13

.0

4 4.

0

1

3

13

.0

2

7

27

.0

4

3

43

.0

3.830

2 0 0.

0

1

7

17

.0

1

7

17

.0

4

0

40

.0

2

6

26

.0

3.750

Avera

ge

3.790

56

Mean

The tables above shows that most of the consumers

strongly agree with the statement in the questionnaire

about the Nokia brand product have a special feature with

the unique variable. Based on the table 4.13, it can be

seen that average mean of price variable are 3.790.

4.4.3 Response of Respondent Style

Style is subjective measure, which describes how the

product looks and feels to the buyer. The response of

respondents about the question which related to service

as follow:

Table 4.14

Respondent on Style (X3)

Quest

ion

No.

Stron

gly

Disag

ree

Disag

ree

Neutr

al

Agree Stron

gly

Agree

Mean

F

r

% F

r

% F

r

% F

r

% F

r

%

57

1 2 2.

0

1

0

10

.0

9 9.

0

3

5

35

.0

4

4

44

.0

4.090

2 0 0.

0

1

7

17

.0

1

4

14

.0

4

3

43

.0

2

7

27

.0

3.790

3 1

4

14

.0

6 6.

0

1

6

16

.0

2

0

20

.0

4

4

44

.0

3.740

4 0 0.

0

4 4.

0

1

3

13

.0

2

5

25

.0

5

8

58

.0

4.370

Avera

ge

mean

3.997

The tables above shows that most consumers are strongly

agree with the statement in the questionnaire. About the

Nokia brand product is style that giving a good product,

elegant, giving a good performance. Based on the table

4.14, it can be seen that average mean of price variable

are 3.997.

4.4.4 Response of Respondent Durability

Durability is measure of product is expected operating

life under natural or stressful conditions. This valued

58

attribute to certain products. The response of respondent

about the question related to service as follow:

Table 4.15

Respondent on Durability (X4)

Quest

ion

No.

Stron

gly

Disag

ree

Disag

ree

Neutr

al

Agree Stron

gly

Agree

Mean

F

r

% F

r

% F

r

% F

r

% F

r

%

1 2 2.

0

2

0

20

.0

2

4

24

.0

2

1

21

.0

3

3

33

.0

3.630

2 0 0.

0

1

1

11

.0

3

0

30

.0

3

7

37

.0

2

2

22

.0

3.700

3 1

0

10

.0

5 5.

0

1

1

11

.0

2

7

27

.0

4

7

47

.0

3.960

4 1

3

13

.0

4 4.

0

1

3

13

.0

2

7

27

.0

4

3

43

.0

3.830

Avera

ge

Mean

3.780

Based on the table above, it can be explained by the

average mean 3.780 or most of respondents are strongly

agree by the statement about the durability in the59

questionnaire. It means that the variable can impact the

purchasing decision of Nokia brand product.

4.4.5 Response of Respondent on Purchasing Decision

Table 4.16

Respondent on Purchase Decision (Y)

Questi

on No.

Strong

ly

Disagr

ee

Disagr

ee

Neutra

l

Agree Strong

ly

Agree

Mean

F

r

% F

r

% F

r

% F

r

% F

r

%

1 0 0.

0

7 7.

0

1

4

14

.0

3

0

30

.0

4

9

49

.0

4.210

2 8 8.

0

9 9.

0

6 6.

0

5

2

52

.0

2

5

25

.0

3.770

3 6 6.

0

1

0

10

.0

4 4.

0

3

7

37

.0

4

3

43

.0

4.010

60

4 1

1

11

.0

4 4.

0

2

9

29

.0

5

0

50

.0

6 6.

0

3.360

Averag

e Mean

3.837

Based on the table 4.16, it could be seen that the

average mean of purchase decision variable is 3.837. Some

respondents agree with this statement and the other

disagrees. It means that Nokia brand has to find the

factors that have a correlation to the purchase decision,

such as their style in order to increasing purchase to

make the costumer become attracted by the Nokia brand. So

the company can build more innovative idea to produce the

best product.

4.5 Correlation between product design and

purchasing decisions of Nokia brand at

President UniversityThis research was made to know the correlation between

product design (label, unique, style and durability) and

purchase decision of Nokia brand at President University

in Cikarang. In order to know the correlation that can

influence the purchasing decision, firstly it required to

61

know the independent variable, which is consist of

product design (Label (X1), unique (X2), style (X3), and

durability (X4)). The factors that influencing purchasing

decision as follow:

Table 4.17

Influencing Purchasing Decision

Variable B Std. error t Sig. tLabel .014 .060 .240 .811Unique .132 .088 1.495 .138Style .600 .114 5.528 .000

Durability .059 .119 .498 .620Constant .758 .629 1.205 .231

Source: primary data

Based on the result of statically calculation by using

the SPSS program, it is shown at the table above, and

then, it retrieved multiple regression equation as

follow:

Y= 0.758 + 0.014(X1) + 0.132(X2) + 0.600(X3) + 0.059(X4)

From that multiple regression equation above, it can be

known the result of the research as follow:

Coefficient Correlation and DeterminationModel Summary (b)

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Model Change Statis

ticR

square

Change

F

Change

df1 df2 Dig. F

Change

Durbin

-

Watson1 0.404 12.719 5 94 0.000 1.817a. Predictors: (Constant), Durability, characteristic, Style, Label,

Uniqueb. Dependent Variable: Purchasing

Source: Primary data

1. The coefficient correlation (R) is 0.635. It means

that the correlation between dependent and independent

variable are 63.5%. So the purchasing decision has a

significant correlation with the label, unique, style

and durability, because the correlation value is 0.5

(in the table above).

2. The coefficient of determination (adjusted R2) =

0.372. It means 37.3% of changing in dependent

variable (purchasing decision) it is influenced by

independent variable (label, unique, style, and

durability). The rest of 62.7% is the changing of

purchasing decision at President University in

Cikarang. It is influenced by the other factors

outside this research.

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Coeficient Regression (β):

1. The constantan value is 0.758. It means, if the

independent variables which consist of label (X1),

unique (X2), style (X3) and durability (X4) are

constant. So the weight of purchasing decision is

0.758.

2. The coefficient regression of label (X1) is 0.014. It

means the changing of purchasing decision

(improvement) has changed in each 100%. Label factors

will be relatively influencing the purchasing decision

in the value 1.4%.

3. The coefficient regression of unique (X2) is 0.132.

It means the changing of purchasing decision

(improvement) has changed in each 100%. The unique

factors will be relatively influencing the purchasing

decision in the value 13.2%.

4. The coefficient regression of style (X3) is 0.600. It

means the changing of purchasing decision

(improvement) has changed in each 100%. The style

factors will be relatively influencing purchasing

decision in the value 60%.

5. The coefficient regression of durability (X4) is

0.059. It means, the changing has changed of

purchasing decision (improvement) in each 100%. The

durability factors will be relatively influencing the64

purchasing decision in the value 5.9%. So it will

increase the purchasing decision in the company, if

the company is improving the label factors,

Based on the explanations above, it could be concluded

that all of independent variables (label, unique, style,

and durability), the dominant factor that has

significantly influenced the purchasing decision is

style, with the value 60%. The other variables also

influenced the purchasing decision such as label (1.4%),

unique (13.2%), and durability (5.9%).

4.6 Hypothesis TestingA hypothesis testing is about the influence of

independent variable which is consisted of label (X1),

unique (X2), style (X3), and durability (X4), which is

influencing the purchasing decision (Y) that can be used

F-test and t-test. For result, it could be seen as

follow:

Table 4.18

ANALYSIS OF VARIANCE (ANOVA)

ANOVA(b)

Model Sum ofSquares df Mean

Square F Sig.

1 Regressio 27.011 5 5.402 12.719 .000(a)

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nResidual 39.926 94 .425Total 66.938 99

a. Predictors: (Constant), Durability, characteristic, Style, Label, Uniqueb. Dependent Variable: Purchasing

Source: Primary data

1. F test

From the simultaneously testing, the researcher has

gotten Fcount with the value > Ftable by used the probability

0.000. From the calculation, it could be concluded that

researcher accepted Ha and rejected H0. It means that

independent variable which consists of label (X1), unique

(X2), style (X3), and durability (X4) has significantly

influenced the purchasing decision of Nokia brand product

at President University in Cikarang.

3. t-Test

To test the influence of each independent variable that

has been influencing the purchasing decision. In this

study, the researcher is used t-test which is the value

of t-test is known in the table:

a. Analysis of label (X1) influencing purchasing

decision (Y)

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The result of SPSS calculation shows, tcount of label are

0.240 and ttable are 1.985. It means, tcount with a

significant t 0.000 and a significant level α=5%. Hence,

the partially quality variable has a significant variable

which is influencing the purchasing decision. It means,

the researcher accepted Ha and rejected H0.

b. Analysis of Unique (X2) influencing purchasing

decision (Y)

The result of SPSS calculation shows, tcount of label are

1.495 and ttable are 1.985. It means that tcount with a

significant t 0.000 and a significant level α=5%. Hence,

the partially quality variable has a significant variable

which is influencing the purchasing decision. It means

the researcher accepted Ha and rejected H0.

c. Analysis of Style (X3) influencing purchasing

decision (Y)

The result of SPSS calculation shows tcount of label are

5.528 and ttable are 1.985. It means that tcount with a

significant t 0.000 and a significant level α=5%. Hence,

the partially quality variable has a significant variable

which is influencing the purchasing decision. It means

that researcher accepted Ha and rejected H0.

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d. Analysis of Durability (X4) influencing purchasing

decision (Y)

The result of SPSS calculation shows tcount of label are

0.498 and ttable are 1.985. It means that tcount with a

significant t 0.000 and a significant level α=5%. Hence,

the partially quality variable has a significant variable

which is influencing the purchasing decision. It means

that researcher accepted Ha and rejected H0.

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CHAPTER V

CONCLUSION AND RECOMMENDATION

5.1 Conclusion

Based on the result of the data analysis, the researcher

concludes as follow:

1. Based on analysis of multiple regression found that

every variable being observer that is the influence

of label (X1), unique (X2), style (X3), and

durability (X4) have a correlation, it is show from

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the value of R = 0.635 and adjusted R2 = 0.372.

value of adjusted R2 show 37.2% changing purchasing

decision at Nokia brand is influence by variable

label, unique, style, and durability, and the rest

of 62.7% the changing of purchasing decision at

President University in CIkarang is influence by

another factors outside this research.

2. Based on result of t-test (partially) shows the

significant influence of independent variable

influencing purchasing decision. Style has more

significant than unique, label, and durability from

the result of t-test got that tcount of style (X3) is

bigger than label (X1), Unique (X2) and Durability

(X4).

3. Based on result of t-test (simultaneously shows that

every variables being researcher are significant

influencing to purchasing decision, iti is because

the value of Fcount = 12.719, compare with Ftable = 2.47

that means Fcount > Ftable at significance level α =

5%.

5.2 Recommendation

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1. The result of this research show that there is a

correlation of the label, unique, style, and

durability with purchasing decision, so it is

important to increasing the purchasing decision at

Nokia brand in Cikarang. In addition, there are

dominant variable that has significant influence

such as style variable. Hence, highly expected a

Nokia brand product more give attention to style

variable.

2. Managerial of this suggestion of this research are

suggestions to management of Nokia brand product

design to more pay attention to the variable (label,

unique, style, and durability), because these

factors could be giving a good image to consumer of

Nokia brand and to increasing purchasing decision of

Nokia brand product.

3. For future improvement of the research, here is the

following recommendation to another research that

would conduct research in the same field or related

field.

a. The future research can lengthen the research

period more than this research to obtain more

result that is comprehensive.

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b. The future research may observe other factors

that affect purchasing decision in future

studies.

BIBLIOGRAPHY

Books

Cooper, Donald & schindler, Pamela (2008). Business Research Methods. 10th

Edition. New York: MCGraw-Hill

Groebner, DF., Shannon, P., Fry, P., & Smith, K (2008). Business Statistic. 7th

Pearson Education

Kotler, P. & Amstrong, G (2010). Principle of Marketing, 13th Edition. New Jersey:

Pearson Education,

Kotler, P. & Keller, K.L (2009). Marketing Management, 13th Edistion. New Jersey

Pearson Education, Inc., Upper Saddle River

Phillip R. Cateora & John L. Graham. (2005). International Marketing, 12th Edition.

International Edition. New York: McGraw-Hill72

Journals

Rahmat S (2008). Difference Satisfaction Students Card User and CDMA GSM Mobile TechnologyJohan Oktavian (2004) Factor To consider Consumern Purchase Decision.Dimas Surya W (2011). Analisis Pengaruh Ekuitas Merek Terhadap Keputusamn Pembelian Handphone Blackberry.Hardian H (2010). Analisis Ekuitas Merek Terhadap Keputusan Pembelian Konsumens Pada Produk Handphone MerekNokia DIsemarang.Internetwww.nokia.com/global/about-nokia/www.nokia.com/global/about-nokia/investor/fiinancialswww.john-uebersax.com/stat/likert.html

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APPENDICES

QuestionerHubungan antara produk design dengan keputusan

pembelian pada handphone Nokia

Jawamblah pertanyaan dibawamh ini dengan membubuhkan tanda (X) pada jawaban yang sesuai dengan pilihan anda.Karekteristik Responden

1. Jenis kelamina. Laki-lakib. Perempuan

2. Usia respondena. <20 tahunb. 20-30 tahunc. 31-40d. 41-50e. >50

3. Majora. International Businessb. Banking and Financec. accountingd. International Relatione. Public Relationf. ITg. Engineeringh. Business low

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4. Uang saku perbulan (pocket money)a. < Rp. 1.000.000,-b. Rp. 1.100.000 – Rp. 2.000.000c. Rp. 2.100.000 – Rp. 3.000.000d. Rp. 3.100.000 – Rp. 4.000.000e. > Rp. 4.000.000,-

5. Apa kamu memiliki produk Nokia?a. yab. tidak

6. Urutkan hanpdhone dibawah ini dari yang terbaik menurut anda dengan mengisi angka 1 yang terbaik.

Nokia Sony Erricson Samsung

Blackberry IPhone LG

7. Berapa handphone yang anda miliki dalam pemakaian sehari-hari?a. 1b. 2c. 3d. 4e. 5>

8. Apakah kamu pernah punya handphone nokia a. Yab. Tidak

Gunakan petunjuk pengisian berkaitan untuk menajwab pertanyaan dibawah ini, kemudian berikan tanda (√) pada kolom jawaban yang sesuai dengan pilihan yang ada.

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STS = Sangat Tidak SetujuTS = Tidak SetujuN = NetralS = SetujuST = Sangat SetujuProduk DesignNo.

Description

Pernyataan STS

TS N S ST

1 Handphone Nokia selalumemberikan segel label.

2 Label yang diterapkan oleh nokia sesuai dengan handphone nokiayang anda miliki.

3 Handphone nokia selalumemberikan petunjuk pemakaian yang lengkap.

4 Unik Handphone Nokia mempunyai keistimewaanyang mempengaruhi penampilan dan fungsi handphone Nokia.

5 Handphone nokia mengeluarkan produk yang unik dalam bentuk,tipe maupun warna.

6 Gaya Gaya atau style produknokia menjadi pertimbangan dalam membeli produk nokia.

7 Produk nokia selalu memiliki gaya dan

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karektirisik sesuai dengan yang anda inginkan.

8 Elegan dan modern menjadi pilihan dalam membeli produk nokia.

9 Anda membeli produk nokia karena dapat mencerminkan gaya hidup anda.

10 Ketahanan

Anda membeli produk Nokia dikarenakan mempunyai pemancar signal yang baik.

11 Produk nokia telah banyak memberikan kepercayaan dalam ketahanan produknya

12 Ketahanan batrey produk nokia sangat handal.

13 anda membeli produk nokia dikarenakan tidak mudah rusak.

14 Keputusan

pembelian

Sebelum anda membeli produk nokia berarti anda telah mengetahui produk tersebut.

15 Dengan membeli produk nokia berarti anda telah mencari informasi yang akurat dan baik.

16 Sebelum membeli produknokia saya telah

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mengevaluasi dan antisipasi produk-produk lainya.

17`

Dengan membeli produk nokia berarti anda telah melakukan pengambilan keputusan dilakukan secara sadar, objective dan terencana.

78