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THE EFFECT OF ENVIRONMENTAL INFLUENCE, BRAND IMAGE, AND BRAND ATTACHMENT TOWARD CONSUMER BUYING DECISION (A SURVEY OF LOREAL PRODUCTS USERS AT HAIRCODE SALON CIBUBUR) By Linda P. Thompson ID no. 014201000074 A skripsi presented to the Faculty of Business President University in partial fulfillment of the requirements for Bachelor Degree in Economics Major in Management January 2014

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Page 1: THE EFFECT OF ENVIRONMENTAL INFLUENCE, BRAND IMAGE, …

THE EFFECT OF ENVIRONMENTAL INFLUENCE,

BRAND IMAGE, AND BRAND ATTACHMENT

TOWARD CONSUMER BUYING DECISION (A

SURVEY OF LOREAL PRODUCTS USERS AT

HAIRCODE SALON CIBUBUR)

By

Linda P. Thompson

ID no. 014201000074

A skripsi presented to the

Faculty of Business President University

in partial fulfillment of the requirements for

Bachelor Degree in Economics Major in Management

January 2014

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PANEL OF EXAMINERS APPROVAL SHEET

The Panel of Examiners declare that the skripsi entitled “THE EFFECT OF

ENVIRONMENTAL INFLUENCE, BRAND IMAGE, AND BRAND

ATTACHMENT TOWARD CONSUMER BUYING DECISION (A SURVEY

OF LOREAL PRODUCTS USERS AT HAIRCODE SALON CIBUBUR)that

was submitted by Linda P. Thompson majoring in International Business from the

Faculty of Business was assessed and approved to have passed the Oral Examination

on March 18th

, 2014.

Dra. Genoveva, M.M

Chair – Panel of Examiners

VinsensiusJajat K., SE, MM, MBA

Examiners I

Suresh Kumar, ST, M.Si

Examiners II

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SKRIPSI ADVISER RECOMMENDATION LETTER

This skripsi entitled “THE EFFECT OF ENVIRONMENTAL INFLUENCE,

BRAND IMAGE, AND BRAND ATTACHMENT TOWARD CONSUMER

BUYING DECISION (A SURVEY OF LOREAL PRODUCTS USERS AT

HAIRCODE SALON CIBUBUR) prepared and submitted by Linda P. Thompson

in partial fulfillment of the requirements for the degree of Bachelor in the Faculty of

Business has been reviewed and found to have satisfied the requirement for a skripsi

fit to be examined. I therefore recommend this skripsi for Oral Defense.

Cikarang, Indonesia, January 29th

, 2014

Acknowledged by,

VinsensiusJajat K., SE, MM, MBA

Head of Management Study Program

Approved by,

Suresh Kumar, ST, M.Si

Skripsi Advisor

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DECLARATION OF ORIGINALITY

I declare that this skripsi, entitled “THE EFFECT OF ENVIRONTMENTAL

INFLUENCE, BRAND IMAGE, AND BRAND ATTACHMENT TOWARD

CONSUMER BUYING DECISION (A SURVEY OF LOREAL PRODUCTS

USERS AT HAIRCODE SALON CIBUBUR)is, to the best of my knowledge and

belief, an original piece of work that has not been submitted, either in whole or in

part, to another university to obtain a degree.

Cikarang, Indonesia, January 29th

, 2014

Linda P. Thompson

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ABSTRACT

This research aims to identify variables influence the most in the decision buying

process of customers at Haircode Salon Cibubur by using Engel-Blackwell-Miniard

model: Environmental Influences, Brand Image, and Brand Attachment The research

is using a quantitative analysis. Data were gathered from 100 respondents of

Haircode Salon Cibubur customers who categorized from age 30-45 who purchase

or get L‟Oreal Product Service In conclusion to answer the statement of the problem,

the researcher used the three variables: Environmental Influence, Brand Image, and

Brand Attachment that influenced the consumer buying decision process elements,

and in the end there is one variable in which environmental influence, that come up

as the variable that give impact or influence the most to the consumerdecision

making process of consumer buying decision of L‟Oreal products at Haircode Salon

Cibubur.This research finally reveals the variables which influenced the most to the

consumer decision process of Haircode Salon Customers as the reference for the

business people especially the beauty product companies

Keywords: Environmental Influences, Brand Attachment, Brand Image, Consumer

Decision-Making Process, Engel-Blackwell-Miniard

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ACKNOWLEDGEMENT

First of all the researcher would like to express his deepest gratitude to God for all

the blessing, guidance and everything that gives to the researcher. Because of his

blessing, the researcher could also finish this skripsi. Through all the effort and

process of finding ideas, changing topics, until the finishing, the researcher also

would like to say thanks to all individuals and group who had supported this skripsi

making process:

1. The researchers parents Mrs. And Mr. Thompson for all the support and pray

from finishing this entire chapter.

2. Mr. Suresh as the researcher skripsi advisor that always gave his time for

improving and giving idea through this entire skripsi.

3. Lizzy Mar as the researchers biggest inspirations in supporting local brands

4. For all the beloved friends at President University, thank you for all best

memories and support

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TABLE OF CONTENTS

PANEL OF EXAMINERS APPROVAL SHEET .................................................... i

SKRIPSI ADVISOR RECOMMENDATION LETTER ......................................... ii

DECLARATION OF ORIGINALITY ..................................................................... iii

ABSTRACT .............................................................................................................. iv

ACKNOWLEDGEMENT ....................................................................................... v

Table of Contents ..................................................................................................... vi

List of Table ............................................................................................................. x

List of Figures .......................................................................................................... xi

CHAPTER I ............................................................................................................. 1

INTRODUCTION

1.1 Background of the study: ................................................................................ 1

1.1.1 Global Demand ................................................................................... 2

1.2 Problem Identification ..................................................................................... 5

1.3 Statement of the Problem ................................................................................ 6

1.4 Research Objective .......................................................................................... 7

1.5 Significance of the Study ................................................................................ 7

1.6 Definition of Terms ......................................................................................... 8

1.7 Scope and Limitation ...................................................................................... 8

CHAPTER II ............................................................................................................ 10

LITERATURE REVIEW ......................................................................................... 10

2.1 Theoretical Review ......................................................................................... 10

2.1.1 Environmental Influence ...................................................................... 10

2.1.2 Brand Image ......................................................................................... 11

2.1.2.1 The Concept of Branding ......................................................... 12

2.1.3 Brand Attachment ................................................................................... 13

2.1.3.1 Brand Self-Connection ............................................................. 14

2.1.3.2 Brand Prominence .................................................................... 14

2.1.4 Consumer Buying Decision .................................................................... 15

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2.1.4.1 Consumer Buying Decision Process Model ............................. 15

2.2 Previous Research .............................................................................................. 22

2.3 Theoretical Framework ....................................................................................... 23

2.4 Hypothesis ........................................................................................................... 23

CHAPTER III .......................................................................................................... 24

RESEARCH METHODOLOGY ............................................................................. 24

3.1 Research Design ................................................................................................ 24

3.2 Sampling Design .............................................................................................. 25

3.2.1 Population and Sample ............................................................................ 25

3.2.2 Research Variables .................................................................................. 26

3.3 Research Instruments ....................................................................................... 26

3.3.1 Source of Data ...................................................................................... 26

3.3.2 Quistionnaire ........................................................................................ 27

3.4 Factor Analysis ................................................................................................ 31

3.5 Reliability .......................................................................................................... 32

3.6 Data Collection Procedure ............................................................................... 32

3.6.1 Descriptive ........................................................................................... 32

3.6.2 Classical Assumption Analysis ........................................................... 33

3.6.2.1 Normality Test ......................................................................... 33

3.6.2.2 MultiCollinearity Test .............................................................. 33

3.6.2.3 Heteroscedasticity Test ............................................................ 33

3.7 Hypothesis Testing ........................................................................................... 34

3.7.1 F-Test ....................................................................................................... 34

3.7.2 T-Test ....................................................................................................... 35

3.7.3 Multiple Linear Regressions Model ......................................................... 36

CHAPTER IV .......................................................................................................... 37

ANALYSIS AND INTERPRETATION OF DATA ............................................... 37

4.1 Company Profile .............................................................................................. 37

4.1.1 History ................................................................................................. 37

4.1.2 Development and Advancement of Loreal .......................................... 38

4.1.3 Product Categories .............................................................................. 38

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4.1.4 The Haircode Salon Cibubur ................................................................ 41

4.2 Data Result Anaylysis ...................................................................................... 41

4.2.1 The Characteristics of Respondents Based on Gender ........................ 41

4.2.2 The Characteristics of Respondents Based on Age.............................. 42

4.2.3 The Characteristics of Respondents Based on Education .................... 43

4.2.4 Respondents Based on Environtmental Influence .............................. 43

4.2.5 Respondents Based on Brand Image .................................................... 44

4.2.6 Respondents Based on Brand Attachment ........................................... 45

4.2.7 Respondents Based on Consumer Decision Process ............................ 46

4.2.8 Classical Assumption ........................................................................... 47

4.2.8.1 Factor Analysis .................................................................................... 47

4.2.8.2 Reliability Test ..................................................................................... 51

4.2.8.3 Normality Test ..................................................................................... 51

4.2.8.4 MultiCollinearity Test .......................................................................... 53

4.2.8.5Heterocedasticity Test ........................................................................... 53

4.2.8.6 Multiple Regression Analysis .............................................................. 54

4.2.8.7 F-Test ................................................................................................... 55

4.2.8.8 T-Test ................................................................................................... 56

4.3 Interpretation Results ...................................................................................... 57

CHAPTER V ............................................................................................................ 60

CONCLUSION AND RECOMMENDATIONS ..................................................... 60

LIST OF REFERENCES ......................................................................................... 63

APPENDIX .............................................................................................................. 69

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LIST OF TABLES

Table 3.1 Five-Likert Scale ..................................................................................... 28

Table 3.2 Questionnaire .......................................................................................... 28

Table 4.1 Percentage of Respondents by Gender .................................................... 41

Table 4.2 Percentages of Respondents by Age ....................................................... 42

Table 4.3 Percentages of Respondents by Education .............................................. 43

Table 4.4 Descriptive Statistics for Environmental Influences ............................... 43

Table 4.5 Descriptive Statistics for Brand Image ................................................... 44

Table 4.6 Descriptive Statistics for Brand Attachment ........................................... 45

Table 4.7 Descriptive Statistics for Consumer Buying Decision ............................ 46

Table 4.8 KMO and Bartlett‟s Test for X-Variables ............................................... 47

Table 4.9 KMO and Bartlett‟s Test for Y-variables ............................................... 47

Table 4.10 Communalities for X-variables ............................................................. 47

Table 4.11 Communalities for Y-variables ............................................................. 48

Table 4.12 Variance for X-Variables ...................................................................... 48

Table 4.13 Variance for Y-Variables ...................................................................... 49

Table 4.14 Rotated Component Matrix for X-Variables ........................................ 49

Table 4.15 Rotated Component Matrix for Y-Variables ........................................ 50

Table 4.16 Reliability Test ...................................................................................... 51

Table 4.17 MultiCollinearity Test ........................................................................... 53

Table 4.18 Multiple Regression Analysis ............................................................... 54

Table 4.19 Anova .................................................................................................... 55

Table 4.20 T-Test .................................................................................................... 56

Table 4.21 Model Summary .................................................................................... 57

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LIST OF FIGURES

Figure 1.1 Map ........................................................................................................ 3

Figure 2.1 Brand Image‟s Dimension ..................................................................... 13

Figure 2.2 Consumer Buying Decision Making Process Model .............................. 17

Figure 2.3 Need Recognition Process ...................................................................... 18

Figure 2.4 Search for Information Process ............................................................... 19

Figure 2.5 Basic Components of Pre-purchase Alternative Evaluation Process ...... 20

Figure 2.6 Steps Between Evaluation of Alternatives and a Purchase Decision ...... 21

Figure 2.7 Theoretical Framework ............................................................................ 23

Figure 4.1 Normality Test ........................................................................................ 51

Figure 4.2 Normality P-Plot Graphic ....................................................................... 52

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CHAPTER I

INTRODUCTION

1.1 Background of the Study

In today‟s society many companies are trying to make their market globalize.

In order to create globalize market companies needs to identify strategies in order to

influence consumer purchasing behaviour for their market. Nowadays, customers

buy things to reward themselves to make themselves feel good and also to satisfy

their psychological needs. People are conscious about social status and tend to own

brand products in order to seek-off their status, be trendsetter, and high self-esteem.

Nowadays, it is interesting to study the connection between “what people

buy” and “why people buy” as purchasing of items have become customers‟

awareness. It is no longer significant to neither see buyers of making rational

decision nor think that the shopper acts in a way that makes sense from an economic

of logical point of view (Pooler, 2003).

In this situation, the buying process is a combination of mental and physical

activities that ends with an actual purchase. The roles of “brand” play an important

influence on customer decision making because brands representing a name or a

symbol of company, product, service or customers‟ reputation. A product usually

made in a factory, it can be copied by competitors and it can be out-of-date. Whereas

brand is something that is bought by a customer, brand is unique, and a successful

brand is timeless once it is well-known for customers (Quiston, 2004). Once a brand

name become popular among customers it will remain to keep sounding on their

mind about the products.

Brands are considered as a weapon in which any business can attain the

attraction of people, expand company business, and can enjoy the competitive edge.

Thus, Brand image development is a long term process and it can prove a strong

weapon to fight with other competitors.

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Consumers look at well-known brands as their final choice. It seems there is a

high correlation within brand and consumer behaviour. Managing brand in effective

ways can help company to enjoy a long term profits and gain customer loyalty in the

long run. Powerful brand will keep resound on the mind of the consumer and gain

loyalty. There is a situation of a customer loyalty, whereas, customer rejected to

change product or services to the other brand when the brand that they love is

running out of products or services. Customers tend to wait for their products to be

on the stock or even going to far away store.

Nowadays, customers are consumptive about purchasing their products; they

are going to purchase branding items, so the company has to try and keep their

customers loyal because once the customer not satisfied with what the brand is

offering, they will stop or seeking for the other that will satisfied them.

There are some benefit that the company will get when they have a loyal customer

stated by Griffin (2005), those are;

1. Reducing marketing cost, because cost for customer acquisition is higher than

the cost for customer retention.

2. Lowering the transaction cost, such as contract negotiation and processing order.

a. Reducing customer turnover cost

b. Increasing of cross-selling

c. Lowering the cost for failure

1.1.1 Global demand

Consumption of branding items as cosmetic products is on highly demand.

As global demand of natural and organic cosmetic and personal care products is

increasing due to the consumption of cosmetics and toilettes those are not restricted

to only women but also men.

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According to Nuning, Barwa (2012), President of Perkosmi or Indonesian Cosmetic

Association,

Figure 1.1 Map

Source: (Barwa, 2012)

1. The USA market has reached up to 11.9% in the year 2010, and in 2015

estimated to reach $6.7 billion.

2. Cosmetic products in Brazil were the most fastest-growing market with total

sales of $7.5 billion in 2010 and expected to increase up to $13 billion in

2015.

3. In Europe the market grew 11. 7 % in 2010.

4. In Asia has increase 14% since the year of 2010, by the end of 2015, Asia

expected sales growth of $16.2 billion (Barwa, 2012).

Domestic demand mostly starts from a new middle class up to high class are

investing in the Southeast Asia, such as Indonesia. Indonesia, as it well-known for

their biggest economic growth for profit selling of 22% in last September for their

cosmetic industry reported by Peter TerKulve, chairman of Unilever Indonesia. He

also added “with this type of growth we constantly need to extend our manufacturing

capability reported from the Malaysian Insider Newspaper (2012).

Indonesians women are well known as the most beauty features for their good

skin and long hair. As it makes cosmetics and shampoo are known as luxurious

products. Wati, a 35-year old domestic worker in Java who earns US$200 a month,

has started spending a little more on shampoo after a recent pay raise, moving from

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Sunsilk up to Dove which is more expensive but both Unilever brands in order to

maintain her beauty. A small tray of face powder and lipstick, her luxury, lasts her a

year reported from the Malasian Insider Newspaper (2012).

Nowadays, people could find beauty cosmetic easily as it available at modern

convenience stores, pharmacies, department stores, and supermarkets spread across

the archipelago of 17,000 islands, home to the world‟s fourth largest population. For

the high-class customers, who love to shop in the fancy malls of Jakarta and other

cities, brand such as Clinique, Lancome, Crabtree & Evelyn and Kiehlare available

for their franchise outlets. For middle-class costumers could find it at Matahari

Stores, Century, and even PasarBaru. For low class costumers could buy it at warung

by buying it sachet products.

Beauty cosmetic are the most register by the government to be “safe” for their

selling products compare to foods and other consumer products. There were about

9,000 cosmetic products registered. One of the famous brands, L‟Oreal, is trying to

develop specific products for Indonesians customer‟s demand. For instance,

Indonesian whose skin has to battle strong sun, high humidity, and urban pollution,

often leading to oily and sweaty complexions. L‟Oreal Company is trying to

matching up with their products in order to fulfil those needs. Moreover, L‟Oreal

Company is also trying to satisfy their customers with launching SPF protection

cream and waterproof products, as Indonesia are high with the Muslim population so

that cosmetics also have to pray five times a day.

In the urban areas, the growths of beauty products are on increasing sales in

terms of brands. From the record, Nielsen Indonesia reported that the expenditures of

cosmetic product has reached to 38.2 million households in Java, Sumatra,

Kalimantan, and Sulawesi. Whereas in the rural areas of java reached up to 11.08

million households (TheJakartaPost, 2013).

Jakarta, a capital city of Indonesia is a place where the business is growing

and promising especially beauty products and services. There are several cosmetic

businesses in Jakarta, such as Revlon, Avon, P & G, L‟Oreal and others. This growth

of cosmetic businesses would create an intense competition among them. L‟Oreal

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Company is as one of the well-known brand and one of the strong competitors

among these beauty businesses that the researcher will focus throughout this paper

1.2 Problem identification

Whitening products‟ are one of the beauty products, sales has a significant

growth from year to year. Customers have a strong desire to have a brighter skin.

From business perspective, whitening products are the long lasting glory of profits.

Until recent reports has stated that whitening products did not go through quality

assurance and safety control. It found out to bring harmful and dangerous negative

side-effects when it used on daily basis.

BPOM least find total of 400,000 illegal cosmetic items on the market of 429

kinds of products (BPOM, 2012). It causes allergic, reddish, irritation, burn, and etc

to the victim customers because some of cosmetics contain unproven dosage of

chemical content. This situation affected to the sales in L‟Oreal to slow down as their

L‟Oreal Revitalist repair 10 is recalled from the market Poulter (2012) has

mentioned.

Another recall product also happen to L‟Oreal Paris Dream Blonde Bleach

and lightening due to their impact of causing irritation and sensitivity, Hair Manicure

L‟Oreal or Nuancelle, INOA in which color products with the first 100 percent

ammonia free permanent hair color that got complaint due to expensive price and

costumer hair color back to normal instead of having the right color.

According to Euromonitor (2012) L‟Oreal has been less proactive in hair care

to the comparison with to the high-growth categories such as skin care. This

supported by the L‟Oreal Group market share 2006-2012.

L‟Oreal has faced other problems on their business by using of beautiful

women as their endorser and product testing policies. Oscar winning actress, Rachel

Weisz, has suggested a ban on the use of Botox by fellow stars. However, critics

were raised when she appeared with perfectly smooth skin in a campaign for

L‟Oreal‟s age-defying beauty products. In fact it had been digitally enhanced or

airbrushed to even out her complexion.

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According to The Advertising Standards Authority (ASA) (2012)

exaggerating image happen to L‟Oreal‟s Revitalist Repair 10. Another,

advertisement for an Olay anti-aging product featuring Twiggy was banned in 2009.

In 2012, L‟Oreal advertisements featuring Julia Roberts and Christy Turlington were

banned as well. Miss Swinson, who is co- founder of the Campaign for Body

Confidence, said: „The beauty and advertising industries need to stop for

manipulating unfair images (Poulter, 2012).

Another problem that L‟Oreal has to face is that the effect of rising price up

to 20 percent from the normal price in the early 2013 (L‟Oreal, 2013) could affect

their consumer from buying their products as buyer will try to look for another

substitution cheaper products other than L‟Oreal.

1.3 Statement of the Problem

To sharpen the focus of this research, research tends to make guidelines as follows.

Topic: This research is about analysing L‟Oreal Products on environmental

influence, brand image, and brand attachment toward consumer buying

decision.

Question: The researcher conducts the study to find out :

1. To what extent environmental influence, brand image, and brand attachment

has influence consumer buying decision?

2. To what extent environmental influence has influence consumer buying

decision?

3. To what extent brand image has influence consumer buying decision?

4. To what extend brand attachment has influence consumer buying decision?

Rationale: This research has purpose to analyse which variables between

environmental influences, brand image, and brand attachment that

influence the most consumer buying decision process of customers in

Haircode Salon to purchase L‟Oreal products.

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1.4 Research Objetives

This objective of the research:

1. To analyze the influence of environmental influence, brand image, and brand

attachment toward the consumer buying decision process of L‟Oreal products users

in Haircode Salon Cibubur

2. To analyze the influence between environmental influence toward the

consumer buying decision process of L‟Oreal products users in Haircode Salon

Cibubur.

3. To analyze the influence between brand image toward the consumer buying

decision process of L‟Oreal products users in Haircode Salon Cibubur.

4. To analyze the influence between brand attachment toward the consumer

buying decision process of L‟Oreal products users in Haircode Salon Cibubur.

1.5 Significant of the Study

1. For the institution (President University):

The research is expected to contribute to the advancement of International

Business knowledge, especially about the relationship between marketing and

beauty industry. This analysis would be a journal for the next generation of

President University that also will do the analysis and can be the sample of

other researchers outside President University students.

2. For organization in beauty industry:

The outcome of this research will be very important for the beauty business in

Indonesia as they reference in bringing international products to be in to

Indonesia and even to push al the local beauty products to be involve in the

business as well. Also attract more audience to purchase beauty products

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3. For the researcher:

Through this research is for partial fulfilment of the requirement for bachelor

degree and also by doing this research the research can apply the theories that

obtain during study process into the real world. Moreover, this analysis gets a

deep knowledge about beauty industries and how to gain more costumers to

purchase products as well in Indonesia as women as the target market and

created the wider point of view for researchers as a positive improvement.

1.6 Definition of Terms

a) Brand Image: a set of association in the minds of customer concerning

what a brand stands for and the implied promises the brand makes.

b) Brand Attachment: The facts that make people remember of specific

items or things.

c) Consumer Buying Decision: Generally viewed as consisting of sequential

steps or stages through which the buyer passes in purchasing a product or

service.

d) Customer Loyalty: a strong held commitment to re-buy or re-patronize a

preferred product or service consistently in the future, despite situational

influences and marketing efforts having the potential to cause switching

behavior.

e) Environmental Influence: External condition or surroundings, especially

in people live and work.

f) Loyal Customer: a buyer who chooses to do business with a particular

supplier and intends to buy from that supplier in the future

1.7 Scope and Limitation

The study will focus the relationship between environmental influence, brand

image, and brand attachment toward consumer buying decision from the perspective

of Haircode Salon‟s consumer. There are several limitations of this study which are :

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1. The research only to investigate and analyse variables that most influence the

consumer buying decision of customers in Haircode Salon Cibubur in

purchasing L‟Oreal products.

2. The population of this study will be limited on Haircode Salon‟s customers

during December-January period due to the limitation of the time.

3. The respondent were costumers (30 years-45 years) at Haircode Salon

Cibubur

4. There are no complete data about Haircode Salon Cibubur. Hence, the

accuracy of the sampling method may be affected.

5. The research did not limit the study to specific gender, marital status, job, or

education level. However, the research still gathers data regarding gender for

demographic description of the study.

6. The result of study is accurate within the duration of the study only because

the planning and development in branding will change by time. Therefore, the

result might different in the future.

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CHAPTER II

LITERATURE REVIEW

2.1 Theoretical Review

2.1.1 Environmental Influence

In today‟s society, consumers were shaped from their environment influence.

Consumers live in a complex environment, and their decision process behavior is

influenced by five major categories (Engel, Blackwell, & Miniard, 2005):

1. Culture

Cultures can categories from social, economic systems, family, religion,

education, language and communication and technology. Culture also used in

the study of consumer behavior. Cultures refer to the values, ideas, artifacts,

and other meaningful symbols that could help individuals to communicate,

interpret, and evaluate about market products in how products are used in

respect to their meaning, form, and also function.

2. Social Class

Social class refers to a group of people who share similar behavior, interest,

values, and behavior in the same economic position.

3. Family

The importance of the family or household unit in consumer behavior is high.

Family can influence decision making process as many products are

purchased by a family unit and buying decisions of individuals may be

heavily influenced by other members of the family.

There are roles from family consumption decisions:

a. Initiator or gatekeeper is the one who initiate an information about buying

products before decide what to buy it serves as father.

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b. Influencer is the one that their opinions are to be listen when about to buy

a product it usually children (daughter or son) in family. Their role is to

influence their parents to buy items.

c. Decider is the person with the financial authority and or power to choose

how the family‟s money will be spent and on which products or brands. It

is usually mother and father who make decision for what need for the

family.

d. Buyer is the person who acts as the purchasing agent by visiting the store,

calling suppliers, writing checks, bringing products into home, and etc.

e. User: The person(s) who uses the product.

4. Personal Influence

Personal influence plays an important role in consumer buying decision

making, especially when one involve with other person or group of people.

As consumers, our behavior is usually affected by peers or those with whom

we closely associate. This influence could take the form of observation of what

others are doing, with the result that they become a comparative reference group.

5. Situation

It is obvious that behavior changes as the situations change and sometimes

These chances are unpredictable.

1. Physical: surrounding, time, and task.

2. Potential Impact of Environmental factors: communication purchase, and

usage situation.

3. Effecting of marketing message: advertisement (Brown, and Rothschild,

1993)

2.1.2 Brand Image

According to Van den Heever (2000) brand helps to identify company‟s good

and services, the word “brand” comes from the old German means to burn. Branding

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has a relationship with declare of property and effect on consumer behavior. A

successful brand can be called when one company of Brand Image can fulfill

customers‟ need according to Hsief, Pan and Setiono (2004). Brand image classify

the brands from competitors it is unique and attractive to customers and creating a

desire for consumers to buy. Brand name and logo identify a product identity, value

and meaning. This statement is supported by Prasana Rosaline Fernandez (2009),

seller needs to identify their product value and meaning to be able to cope with other

competitor. Brand name and logo must also be unique and up-to-date in order t

manage to the fast changing environment to make their customer loyal.

Shopping, becomes a culture for Indonesian, it becomes a way to reduce their

stress from their daily routine. Also, people tend to shop for branding items as to

fulfill their desire to be acceptable in their society. People would tend to look higher

to their social status and with the look to be the trendsetter and to be appraisal on the

community.

2.1.2.1 The Concept of Branding

Brand is on consumers‟ heart and mind because consumers trust brand items.

Consumers want the item to be certain and qualify. Brand is a way to distinguish a

company‟s good, or services from their competitors Kotler (2009). Many of company

try to improve their brand image until it reaches perfection in order to gain higher

number of profit. Brand image serve as the most powerful instrument for marketing

strategy and strong weapon for long term profitability. From the consumers‟

perspective, brand is a guarantor of reliability and quality in consumer products

Roman et al (2005) added to this consumers. People tend to buy and use brand-name

products with a view to highlight their personality in different situational contexts

(Fennis and Pruyn, 2006). There are five dimensions to brand images benefits:

Experiential, Symbolic, Functional, Social, and Appearance Enhances

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Figure 2.1 Brand Image’s Dimension

Source: Sondoh, Omar, Wahid, &Harun. 2007)

These brand images consists of experiential, symbolic, functional, social,

appearance, and enhances are the most important aspects to the creating of consumer

buying decision. Once a company accomplished the five dimension of brand image,

Oliver supported (1997) that it will create satisfaction and thus customers will

become a loyal costumer and have commitment to buy products. This is supported

byVasquez and Foxall (2006) has indicated that product image or brand have

significant impact on people loyalty.

2.1.3 Brand Attachment

Brand attachment stay in memory of a specific brand and consists of all

brand-related thoughts, feelings, perceptions, images, experiences, beliefs, attitudes

(Kotler and Keller, 2006). In this idea, customers feel strong connection with the

brand. Brand, attachment is critical because it should affect behaviors and later will

create brand profitability and customer lifetime value (Thomson, MacInnis, and Park

2005). It is also a stronger predictor of actual consumer behaviors than brand attitude

strength. When customers become attached to brand, the customers remain loyal and

not looking for alternative brands. The Brand Attachment can be explain as

motivation for self- expansion it supported from the Self-Expansion Theory (Aron et

al. 2005). It is a desire to incorporate brands into customer conception of “self.” The

more brand is included in the self; the closer is the bond that connects them. People

Brand Images:

(experiential,

symbolic,

functional, social,

Appearance

Enhances)

Overal

Satisfaction

Loyalty

Intention

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develop a positive feeling of “oneness” with the entity and tend to view the entity‟s

resources as their own (Mittal 2006).

Two factors of determining brand attachment: Brand-Self Connection and Brand

Prominence

2.1.3.1 Brand–Self Connection

The idea that attachment involves a bond involves cognitive and emotional

connection between the brand (Chaplin and John, 2005). In this case consumer

develops a sense of oneness with the brand and creates a connection among them.

Customer feels high link with the brand or known as a cognitive representation.

Customers feel connection with brand thru their emotional (Thomson, MacInnis, and

Park 2005). Sometimes, it will create complex feelings about the brand, including

sadness and anxiety from brand if they do not purchase right away. Also vice versa,

customers feel happiness and comfort from brand and have pride with their brand

when they purchased. Consumers can be connected to a brand because it represents

who they are such as identity basis, personal concerns, or life projects (Mittal, 2006).

2.1.3.2 Brand Prominence

Brand prominence reflects the cognitive and affective bond that connects

brand with buyer‟s feeling and mind. Consumers who are highly attached to a brand

are more motivated to willing to pay a higher price for the brand (Thomson,

MacInnis, and Park 2005) or the willingness to purchase a large amount of products

brand rather than to other brands in the same or related product categories, and time

resources. The idea of Brand-Connection and Brand-Prominence are also high as a

thru of positive word-of-mouth. Positive memories about the attachment of other

person can effect to the other in highly attached to an attachment object than for

people who show weak attachment. In this case, when friend or family are satisfy

with a specific brand it will create the other to be attached to the brand that family or

friend satisfied with. Customers have to spend more time, money, and energy spent

on relationship sustaining behaviors of the brand itself. This logic is also supported

to (Akçura, Gönül, and Petrova, 2004) which suggests that the prominence of

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feelings and thoughts can affect behavior by inhibiting recall of other thoughts and

feelings.

2.1.4 Consumer Buying Decision

Most of Companies are trying to match with costumers‟ need in order to

achieve their buying decision. The concept of Consumer Buying Decision needs to

be known for the Company to gain their customer‟s heart. In this case, consumer

behavior has been defined as the activities of people engaged in actual or potential

use of market items-whether products, services, retail environment, or ideas

(Berkman& Gilson, 1978). Consumer Behaviour can influence and change including

consumer education and protection, and the public policy (Engel, Blackwell,

&Miniard, 2005) toward the purchasing item. In this case highly educated customers

can be influenced by a salesperson to buy products in term of brand. Companies

have to understand of consumer consumption process in order to gain benefit this

statement supported by Aslam, Jadoon, and Zaman (2011). These Consumer

behaviours of values, preferences, perceptions, and behaviours are passed down

through individual‟s family, social groups, peers, and the surrounding culture and

subcultures it can be called as a word-of-mouth. Word of mouth can be classified in

both positive and negative way. In a positive way can promote products or service

vice whereas in negative way could create many disadvantages for company.

Therefore the effect of word of mouth can be beneficial (Solomon, 1996). Word-of-

Mouth Marketing is called as an advertising campaign messaging and is a vehicle for

a company to influence Local Market, Trendsetters, and Tastemakers to impressed

purchase behavior.

2.1.4.1 Consumer Buying Decision Process Model

Consumer Buying Decision Process Model is important for the customer in

order to fulfill the need in term of products, ideas or services (Du Plessis, Rousseau,

& Ehlers, 2011). A question arises when to determine “how do consumers make

decisions?” (Richarme, 2005). Consumer can make decision in where, what, and why

to buy product. A company really needs to focus on their consumer buying strategy.

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Customer decision is a multi-staged and complex with several factors problem

recognition.

A consumer making a decision could be difficult in justifying the decision

(Mowen & Minor, 2006). There are several theory in determining consumer making

decision and will be explain now. First, The Theory of Buyer Behaviour (Howard

and Sheth, 1969) and the second is Consumer Decision Model (Blackwell, Miniard

et al. 2001) is two of the most widely cited analytical models.

The Howard-Sheth model or theory of buyer behavior is designed to explain

the brand choice of an individual. There are 5 levels of the Howard-Sheth model

decision making (Rao, 2011):

1. Extensive Problem-Solving (the early stages) of decision making where

the buyer has little information about brands.

2. Evoked Set – the consumers‟ assessment of the ability of the consumption

choices that are under active consideration to satisfy his or her goals.

3. Decision mediators – the buyer‟s mental rules or heuristics for assessing

purchase alternatives.

4. Predispositions – a preference toward brands in the evoked set expressed

as an attitude toward them.

5. Inhibitors – environmental forces such as limited resources (e.g. time or

financial) which restrain the consumption choice. There are 2 factors of

inhibitors:

1. Limited Problem-Solving (the advanced stage) where undecided

customers have knowledge and choice criteria.

2. Routinized Responses Behavior where buyers have well defined choice

criteria and also have strong tendency towards the brand.

The other Consumer Buying Decision Model is also known as the Engel-

Blackwell-Miniard Model was originally developed in 1968 by Engel, Kollat, and

Blackwell. This theory is a solving problem for many companies to learn in a depth

of consumer behavior and in how increase profitability. According to Engel,

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Blackwell, and Miniard (2005) there are 7 basic steps to the consumer buying

decision making process model:

Figure 2.2 Consumer Buying Decision Process Model

Source: (Engel, Blackwell, &Miniard, 2005)

1. Need recognition

It is an initial and decision stage and also has strong influence. It starts with the

consumer recognizes a problem or need (Kotler & Armstrong, 2006) and

determine on whether buying products or not. Need of recognition can influence

three factors such as environmental influences, individual differences, and

memory (Engel, Blackwell, & Miniard, 2005) for making their decision. For

instance, if a customer has a strong positive image of a brand then it will remain

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in their memory to purchase their items. Whereas, if a customer‟s has negative

image of the specific brands, the customers will not use the brands

Figure below will illustrates what happens during need recognition process.

Figure 2.3 Need Recognition Process

Source : (Engel, Blackwell, &Miniard. 2005)

2. Search for Information

When customer is searching for more information (Kotler, 2003).This is a

complex situation that contains both an internal and an external process. For

example, when customer familiar with their purchase, customers memory might

satisfactorily provide the information needed. The level of information required

to the involvement, experience and level of perceived risk. When customer

experience a significant degree of past experience, there is a high degree of

involvement or risk the purchase will require an external search for information

(Engel, Blackwell, &Miniard, 2005).

Desired State

Below

Thresholds

No Need

Recognition

Degree of

Discrepancy

Actual State

At or Above

Threshold

Need

Recognition

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Figure 2.4 Search for Information Process

Source: (Engel, Blackwell, &Miniard, 2005)

From this case, buying decision is determine through internal search and also

from the knowledge itself in this case when already purchase brand item.

Customers are familiar with the brand itself.

3. Pre-purchase Evaluation of Alternative

Pre-purchase alternative evaluation can be defined as the process by which a

choice alternative is evaluated and selected to meet consumer needs (Engel,

Blackwell, & Miniard, 2005). Once the information is brought together the

purchaser will make their decision. :

1. The consumer is trying to determine a need.

2. The consumer evaluates that consist of brand name, price, country of origin,

and other, for certain benefits or choose from the product solution.

3. The consumer sees each product as a bundle of attributes of interest to buyers

vary by product (Kotler, 2003). The figure below will explain about basic

components of the pre-purchase alternative evaluation process.

Need Recognition

Internal search

Internal search

successful?

Undertake

External Search

Proceed with

decision

Determinants

of

Internal

Search:

Existing

Knowledge,

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Figure 2.5 Basic Components of Pre-purchase Alternative Evaluation Process

Source: (Engel, Blackwell, &Miniard, 2005)

In this case, when there is pre-purchase alternative, customers can determine

whether stay loyal to the specific brands or even see another alternative or

substitute of the other brands.

4. Purchase

In the evaluation stage, the consumer forms preferences among the brands in the

choice. Consumer has an intention to buy the most preferred brand. However,

there are several of factor that could impact the purchase process (Engel,

Blackwell, & Miniard, 2005). Such as:

a. Changed motivation: Activated need is fulfilled in other ways or other needs

become dominant.

b. Changed circumstances: Economic considerations or other factors make a

purchase at this point become unwise

c. New information: previous alternative evaluation is shown to be deficient.

d. Desired alternatives are no longer available: the unanticipated shortages.

Assess Performance

of Alternatives

Apply Decision

Rule

Determine

Evaluative

Criteria

Determine

Choice

Alternatives

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The figure below will give explanations how are the steps between evaluation of

alternatives and a purchase decision.

Figure 2.6 Steps between evaluation of alternatives and

a purchase decision

Source: (Kotler, 2003)

When there is alternative and a purchase decision, customers influence whether from

others in this case through environmental influence (family, social groups, or peer)

and also unanticipated from other factor in finding alternative to purchasing decision.

5. Consumption

The act of purchase. However, in this case the consumer must decide how this is

to be done. There were several options including usage at the earliest convenient

opportunity, short-term storage in anticipation of later usage opportunities, long-

term usage with no specific or anticipated use in mind (Engel, Blackwell, &

Miniard, 2005).

6. Post Consumption Evaluation

After consumption the consumer will evaluate and decide if the result of

purchase process was satisfaction or dissatisfaction. This could effect to the

future purchase (Engel, Blackwell, & Miniard, 2005).

Evaluation of alternatives

Purchase intention

Attitudes of others Unanticipated

situational factors

Purchase Decision

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7. Divestment

Finally a consumer will need to consider how they will divest themselves of the

purchase. The resale value of high ticket items is an important factor in the

purchase decision. Increasingly ecological factors also effect purchase decisions

(Engel, Blackwell, & Miniard, 2005).

2.2 Previous Research:

Author Title Analysis Result

Niazi, Siddiqui,

Shah,and Hunjra,

(2012)

“Effective

advertising and

its influence on

consumer buying

behaviour”

Questionnaire of 200

respondents in twins cities

of Pakistan,

Environmental influence

and brand attachment as

Independent variable,

consumer buying decision

as dependent variable

Consumer buying decision

affected by the role of

environmental influence

Sondoh (2007) “The influence

of Brand Image

on Overall

Satisfaction and

Loyalty

Intention”

A Survey carried out on 97

females, as brand image is

the independent variable,

and consumer buying

decision and overall

satisfaction as the

dependent variable

Brand image influence

consumer buying decision

and thus creating customer

loyalty

Saeed, Lodhi,

Mukhtar,

Hussain,

Mahmood, and

Ahmad (2013)

“Factor

Affecting

Consumer

Purchase

Decision

Clothing

Industry”

A survey of consumer

buying behaviour in 2010,

Independent variable:

environmental influence,

brand image, and brand

attachment

Brand attachment create

consumer buying decision

when they get their favourite

design even at expensive

price

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2.3 Theoretical framework

Figure 2.7 Theoretical Framework

Source: Saeed, Lodhi, Mukhtar, Hussain, Mahmood and Ahmad (2013), self- construct

2.4 Hypothesis

1. H1: There is significant relationship between Environmental Influence, Brand

Image, and Brand Attachment toward Consumer Buying Decision Process on

purchasing L‟Oreal products.

2. H2: There is significant relationship between Environmental Influence toward

Consumer Buying Decision Process on purchasing L‟Oreal products.

3. H3: There is significant relationship between Brand Image toward Consumer

Buying Decision Process on purchasing L‟Oreal products.

4. H4: There is significant relationship between Brand Attachment toward

Consumer Decision Process on purchasing L‟Oreal products.

Environtmental

Influence

Brand Image

Brand Attachment

Consumer Buying

Decision

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Chapter III

RESEARCH METHODOLOGY

3.1 Research Design

The methods for conducting research are divided in two categories:

qualitative and quantitative (Bryan & Bell, 2003). This research used quantitative

analysis which use questioner to analyze the most influence variables between

Environmental Influence, Brand Image, and Brand Attachment at Haircode Salon in

Cibubur area for purchasing L‟Oreal products. Based on Cooper and Schindler

(2006), research design is the blueprint for fulfilling objectives and answering the

question.

Quantitative research used because it provides the fundamental connection

between empirical observation and statistical tools of quantitative relationship.

According to Ross cited in Arquisola (2007) quantitative research uses data that are

structured in the form of numbers or that can be immediately transported into

numbers. It conforms to Bryan and Bell cited in Vardhan (2006) a quantitave design

is used “if the data is measured by numbers”. A quantitative technique is used by the

researcher to the respondent. Quantitative analysis is statistical analysis techniques

the determining value by examine its numerical and measurable characteristic.

Quantitave analysis is different from the qualitative analysis because in

qualitative analysis the journal will have no calculation of the numerical data, they

are focus on the theory and words but on the other hand quantitative analysis will

focus on using a calculation for the input data to reach the output. Quantitave

research uses numbers to prove or disprove a notion or hypothesis. Quantitative

research done by determined before commencing the project, use single or mixed

method with high level of consistency and involved cross-sectional or a longitudinal

approach (Cooper and Schindler, 2006).

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3.2 Sampling Design.

3.2.1 Population and Sample

Population is a collection of analysis‟ unit that contains information which

wanted to know, in which the unit of analysis can be a person, event, company,

hospital, store, students, and others who share a number of common characteristic

(Simamora, 2004). In this study, the population used is all the costumers Salon in

Cibubur Area.

A population consists of all the items or individual about which people want

to reach conclusion (Berenson, Levine, & Timothy, 2012). Therefore, the target

population in this research is all consumers, men and women who purchased L‟Oreal

products in Haircode Salon in the Cibubur Area during period of December and

January. However, researcher does not know exactly how many of Haircode Salon

Cibubur who purchase L‟Oreal products. Therefore, researcher used infinite

population. According to Kothari (2004) infinite population is that population in

which it is theoretically impossible to observe all the elements. Researcher uses the

term infinite population for a population that cannot be enumerated in a reasonable

period of time.

Sampling technique is an information or data collection method of some parts

or members of a population (Silalahi, 2006). Sampling technique used in this

research, researcher will use non-probability sampling. Non-probability sampling

relies on the personal judgment of the researcher rather than on chance to select

sample elements. The researcher can arbitrarily or consciously decide what elements

to include in the sample. Non-probability samples may yield good estimates of the

population characteristics. The technique of using this sample is quota sampling is a

technique to of using total population (Sugiyono, 2009).

There are several characteristics for the sample:

1. The customer purchase product or get a service.

2. The age between 30-45 of women and men.

. In this study, because the population is unknown the number of samples was

obtained from infinite sampling design formula, as follows:

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n = (

)

= (( ) (

)

= 96,04

Source: Kothari (2004)

n = total sampling

Z = α = 0.05 so Z0,05 = 1.96

= population standard deviation

e = sampling error; e= 5%

3.2.2 Research Variables

The research has 4 variables which including 3 independent variables and 1

dependent variable. The independent variables represent the variable that influenced

the consumer decision making that consisted of Environmental Influences, Brand

Attachment and Brand Image. The independent variable itself is the consumer

buying decision. Based on the literature review in chapter 2, researcher will describe

characteristics of each variable that will later used to construct questionnaire.

3.3 Research Instruments.

3.3.1 Source of Data

In this thesis the research used the primary data and secondary data by given

questioner to respondents. The questioner was based on Engel-Blackwell- Miniard

Consumer Buying Decision Making Theory. Primary data is the data originated by

the researcher for the specific purpose of addressing the research problem (Mahotra

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27

and Peterson, 2002). Based on Copper and Schindler, primary data is the data that the

researcher collect to address the specific problem at the hand of the research question

(Cooper &Schindler, 2006). Therefore, according to William. G Zikmund primary

data gathered and assembled specifically for the research project at hand (William G,

2002). Primary data collected from the questioner research and the data are edited to

ensure the consistency across respondents. In this research, the questionnaires were

filled at the Haircode Salon Cibubur. The criteria must be the one with age between

30-45 years old. Whereas secondary data is data from secondary resources that the

researcher need including from journal, book, article, literature, or internet sources

(Bungin, 2008).

3.3.2 Questionnaire

According to Bulmer cited in Kelly, Harper, & Landau (2007) a questionnaire

is any structured research instrument which is used to collect social research data in a

face-to-face interview, self-completion survey, telephone interview or Web survey.

Questionnaire is a collection of data by providing or distributing a list of questions to

the respondents with hope of providing a response to the question list. Questionnaire

will be spread in order to gather the primary data. Questionnaire translate research

objectives into specific questions, standardize question and response categories,

foster respondent cooperation, serve as permanent records, can speed the process of

data analysis, and can serve the basic for reliability and validation measures (Burns

&Bush, 2003). According to Burns and Bush (2003) there are six functions of

questionnaire which are:

1. Translate the research objectives into question that are asked of respondents,

2. Standardizes those questions and the response categories so every participants

responds to identical stimuli,

3. By its wording, questions flow, and appearance, it fosters cooperation and

keeps respondents motivated throughout the interview,

4. Serves as permanent records of the research,

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5. Depending on the type of questionnaire used, a questionnaire can speed up

the process of data analysis.

6. Contains the information on which reliability assessments may be made and

they are used follow-up validation of respondents‟ participation in the survey.

In this research, the questionnaire is using the five-likert scale format, in

which respondents are asked to indicate their degree of agreement or disagreement

on symmetric agree- disagree scale for each of series of stamen (Burns &Bush,

2003). Each response is given a numerical score to reflect its degree of attitudinal

favourable, and scores may be summed to measure the participant overall attitude

(Cooper &Schindler, 2006).

Table 3.1 Five- Likert Scale

Scale Rating

1. Strongly Disagree

2. Disagree

3. Neutral

4. Agree

5. Strongly Agree

Source: Burns and Bush (2003)

Table 3.2 Questionnaire

No Variable Indicator Question Researcher

X1 Environmental

Influence

Situation Ads of the brand

attract me to

purchase

Khraim

(2011)

Situation Increases of price

not hinder me to

purchase

Khraim

(2011)

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Social Class The Brand helps me

to better fit into my

social group

Sondoh,

Omar, Wahid,

Ismail and

Harun (2007)

Situation Costumers bought

products to show

their economy

situation

Khraim

(2011)

X2 Brand Image Appearance

Enhance

The Designs of the

brand have

distinctive features

Khraim

(2011)

Symbolic Brand Name and

Image attract me to

purchase

Khraim

(2011)

Social Brand Name is

selected regardless

of price

Khraim

(2011)

Functional Brand reflects my

own personality

Khraim

(2011)

Symbolic The brand is

reputable

Khraim

(2011)

Functional The brand has good

functional quality

Khraim

(2011)

X3 Brand

Attachment

Feelings I feel emotionally

bonded to the brands

L. Malar

(2011)

Thoughts and

Feelings

The brand products

are often on my

thought and feeling

naturally and

instantly

L. Malar

(2011)

Thoughts The products

automatically evoke

many good thoughts

L. Malar

(2011)

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about the past,

present, and future

Experience Costumers have own

more than one

products

L. Malar

(2011)

Perception and

Beliefs

The products is a

part of me * on daily

basis

L. Malar

(2011)

Y Consumer

Buying

Decision

Need Recognition The most well-

known and

advertised of the

product are usually

good choices to

purchase

Kwan, Yeung,

Au (2004)

Divestment My standards and

expectations on the

quality of the brand

are very high

Kwan, Yeung,

Au (2004)

Search for

Information

The brand last

longer than other

brands

Kwan, Yeung,

Au (2004)

Consumption The provides good

value for the money

Kwan, Yeung,

Au (2004)

Pre- Purchase

evaluation of

alternative

The access to buy

the products was

easy to be found.

Kwan, Yeung,

Au (2004)

Likert scale was firstly developed by Rensis Likert and often referred as Method of

Summated ratings, which means the rating scores for any answers or responses were

summed so that the total value is achieved (Likert, 1932). Likert scale contains

questions that systematically compiled to show the attitude of a respondent toward

the statements.

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3.4 Factor Analysis

Factor analysis is a multivariate statistical procedure that used to examine all

the variables for interdependence (Malhotra, 2010). In general, this method used to

examine small number of factors that used to represent relationship among

interrelated variables. According to Nunnally‟s (as cited in Yamaguchi, 2008) There

are several steps in factor analysis to be tested:

1. KMO and Barlett test

To determine the appropriateness of the factor analysis in a research can be

analyze through the KMO (Kaiser-Meyer-Olkin) measure of adequacy test and

Barlett test of spericity. KMO test with range of 0 to 1 used to determine the

appropriateness of a research, if the index value quite high (around 0.5 to 1.0) ,

then factor anaysis is appropriate.

2. Communalities

Is an appropriate proportion of a test that being summed, the amount of variance

a variable shares with all the other variables being considered (Malhotra, 2010).

Acceptable values for communalities are above 0.5.

3. Total Variance

In total variance table, there is cumulative column which representing a

percentage that should be less than 100% because not all the variance is

explained through this study. The requirements of cumulative percentage

are 60%, but it would be great if the percentage is much higher. (Lehner &

Bredl, 2011)

4. Rotated component matrix

First of all, components loadings are representing a correlation coefficients

between variables and components to deliver information about the relationship

of variable and component. (Beri, 2007) Rotated component matrix used to

deliver a table that consist of factor loadings for each variable on the

components, each number represents the partial correlation between item and

rotated factor (Beri, 2007).

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3.5 Reliability Test

Reliability test is used to determine the stability and consistency with which

the research instrument measures the constructs. Furthermore, Ary, Jacobs &

Razavich cited in Oluwatayo & Ayodele (2012) stated that if the test items on an

instrument are heterogeneous, that is measuring more than one trait or attribute, the

reliability index is best computed using Cronbach-alpha. Cronbach‟s Alpha

reliability test is used by averaging the coefficient that result from all possible

combinations of split halves. Given the formula below:

= *

+ [

]

Where:

N = number of items on the instrument

= variance of individual item score

= sum of variances of scores of individual items

= variance of the total test scores

As noted by Malhotra cited in Yee & San (2011), the coefficient varies from

0-1 and value of 0.6 or less generally signifies unsatisfactory internal consistency

reliability. Alpha coefficients below 0.6 are weak in reliability, 0.6-0.8 is moderate

strong and 0.8-1.0 is very strong in reliability.

3.6 Data Collection Procedure

3.6.1 Descriptive

This research, the researcher used descriptive statistics in order to give

description of each variable that is used in this research. Those variables will be

related with collecting and summarizing data and with the presentation data.

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3.6.2 Classical Assumption Analysis

3.6.2.1 Normality Test

Normality test is a method determines whether data that is used to test the

observation is normally distributed or not. In other word, normality test is

use to test the regression model between Independent and dependent variable

is distribute well or not; because the regression model must be normal or

almost normal (Priyatno, 2008).The easy way to know the regression is

normal or not, the data must be follow the diagonal line or histogram graph.

The graphical method show the distribution from random variable and

compare the distribution to theoretical plot.

3.6.2.2 Multicollinearity Test

Multicollinearity test is useful for the researcher to know the about each

independent variable is have related with the other in multiple regression.

According to Malhotra (2010), Multicollinearty test is a test to see the

correlations between Dependent and independent variable. Multicollinearity

test is test that must be avoid to all researcher, because the Multicollinearity

test is not good for each variable that related each other. To know the level of

Multicollinearity, Variance Inflation Factor (VIF) is used to know the level.

Usually VIF is used to know how high the level of variance of coefficients to

increase if there are no correlation between each independent variables. If

result of VIF. Is the result is above than 5, its mean two variable is have a big

correlation between each of them, and the researcher must deleted the

variable from multiple regressions. If the result of VIF is less than 5, it is

means the data is appropriate.

3.6.2.3 Heteroscedasticity Test

Heterocedasticity test is a test to see the pattern of residual variance from one

observation to another observation (Field, 2012). In this research to

determine heterocedasticity problem, researcher use scatter plot where

according to Santoso (2012), the model of scatter plot can be categorized

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does not has any heterocedasticity if the plot on scatter plot are spread

randomly upper and lower 0 at Y axis without any specific pattern.

3.7 Hypothesis Testing

Testing the hypothesis explained by giving the statement or assumption about the

phenomenon. The statement divided into null hypothesis (H0) and alternative

hypothesis (Ha). Null hypothesis reflects that there are no effects of research and

alternative hypothesis reflects the effect for research. Hence, the hypothesis testing is

stated as follow:

Hα.1: There is significant relationship between Environmental Influence,

Brand Image, and Brand Attachment toward Consumer Buying Decision

Process on purchasing L‟Oreal products.

H0.1: There is no significant relationship between Environmental Influence,

Brand Image, and Brand Attachment toward Consumer Buying Decision

Process on purchasing L‟Oreal products.

Hα.2: There is significant relationship between Environmental Influence

toward Consumer Buying Decision Process on purchasing L‟Oreal products.

H0.2: There is no significant relationship between Environmental Influence

toward Consumer Buying Decision Process on purchasing L‟Oreal products

Hα.3: There is significant relationship between Brand Image toward Consumer

Decision Process on purchasing L‟Oreal products.

H0.3: There is no significant relationship between Brand Image toward

Consumer Decision Process on purchasing L‟Oreal products.

Hα.4: There is significant relationship between Brand Attachment toward

Consumer Decision Process on purchasing L‟Oreal products.

H0.4: There is no significant relationship between Brand Attachment toward

Consumer Decision Process on purchasing L‟Oreal products.

3.7.1 F-Test

F-test is aimed to test the influence of all independent variables toward dependent

variable simultaneously. In this test there will be hypothesis that:

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H0: β1 = β2 = β3 0, if significant F > 0.05, accept H0

Ha: at least there is one β ≠ 0, if significant F < 0.05, reject H0

The level of significance that used in this research is α = 0.05. H0 is accepted if the f

test value is greater than the level of significance α = 0.05 and H0 is rejected if the f

test value is less than the level of significance α = 0.05.

Hα.1: There is significant relationship between Environmental Influence, Brand

Image, and Brand Attachment toward Consumer Buying Decision Process on

purchasing L‟Oreal products.

3.7.2 T-Test

The T-test will analyze the partial relationship between each of independent

variables (coefficient) and the dependent variable (Sarwono, 2012). The null

hypothesis is that the coefficient of independent variable (the slope of the line is 0).

If the significant level for the T-test is low (significant level alpha used is 0.05),

means rejecting H0 and conclude that the linear relationship does not exist and vice

versa.

H0: β1 = β2 = β3 0, if significant F > 0.05, accept H0

Ha: at least there is one β ≠ 0, if significant F < 0.05, reject H0

The level of significance that used in this research is α = 0.05. H0 is accepted if the f

test value is greater than the level of significance α = 0.05 and H0 is rejected if the f

test value is less than the level of significance α = 0.05.

H0: βi = 0, if significant T > 0.05, accept H0i = 1, 2, 3, 4

Ha: βi ≠ 0, if significant T < 0.05, reject H0

Hα.2: There is significant relationship between Environmental Influence toward

Consumer Buying Decision Process on purchasing L‟Oreal products.

H0.3: There is no significant relationship between Brand Image toward Consumer

Decision Process on purchasing L‟Oreal products.

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H0.4: There is no significant relationship between Brand Attachment toward

Consumer Decision Process on purchasing L‟Oreal products

3.7.3 Multiple Linear Regressions Model

Regression analysis is the statistical techniques that identify the relationship

between two or more quantitative variables: dependent variables, whose value is

predicted, and independent variable that is about which knowledge is available.

Multiple regression analysis conducted by researchers in order to predict how the rise

and fall of the dependent variable when two or more independent variables as

predictor are changed. Thus, Multiple regression analysis will be performed when the

number of independent variables at least 2.

Y= βo + β1X1 + β2X2 + β3X3 + ε

Where:

Y = Dependent Variable, Consumer Buying Decision

a = Constant

b = Regression Coefficient of Independent Variable

X1 = Environmental Influences

X2 = Brand Attachment

X3 = Brand Image

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CHAPTER IV

ANALYSIS OF DATA AND INTREPRETATION

RESULTS

4.1 Company Profile

L‟Oreal Group is one the world's largest cosmetics and beauty company

located in Paris, France. L‟Oreal Company is well-known for their cosmetic products

such as hair care products including hair color shampoo, hair tonic, skin care, sun

protection, make-up, perfumes. The Company hires many professionals‟

dermatologist, tissue engineering, pharmaceutical fields with the use of

nanotechnology patent-holder from US to make sure that their products are safe for

their customers.

4.1.1 History

The L‟Oreal Company started in1907 by EugéneSchueller, a young French

chemist and developed an innovative hair-color formula and during that time the

customers are Parisian hairdressers. Later on L‟Oreal were expanded through

research and more innovation to concentrate in the beauty products to Holland,

Austria, Italy, USA, South America, Russia and other countries. Until in the 1920,

this company has employed 3 famous chemists, and in 1950 employed 100 research

team members, in 1984 increase to 1,000 researchers.

Today, L‟Oreal company is present worldwide with employment more than

3,000 chemists (L‟Oreal, 2013) and over 500 brand and more than 2,000 products

such as hair color, permanent, styling aids, cleaners, skin care, and other cosmetic

products are sold in all distribution channels, from hair salon, perfumeries,

supermarket, healthy and beauty outlets.

In the present time, the company has over 50,500 employees worldwide,

which are of 98 nationalities. The Group is present in 130 countries and has 290

subsidiaries. 76 of the personnel work out of France. There are 42 factories all

over the world producing L‟Oreal products.

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4.1.2 Development and Advancement of L’Oreal

L‟Oreal is trying to win their customer‟s mind and heart by creating products

according to the needs, beauty rituals and lifestyles. Nowadays, L‟Oreal productsare

innovated according to their consumers live in term of climate, environmental

influence, and tradition or culture.

In the year of 2012, in Japan, L‟Oreal Professional has innovate dodor-free

hair color technology or known as “Alluria Grey and Alluria Fashion.” Whereas in

Korea, has innovated the permanent wave collection. Korea is most known for their

fashion trends.

In Indonesia, L‟Oreal opens one of the largest plants in Jababeka as Indonesia

has known for the fast-growing demand in the South-East Asian beauty market.

L‟Oreal Company has a goal to become the hair care and has a growth rate of 33.9 %

and rapid expansion of an affluent middle class and the strong appeal of high-quality,

affordable cosmetics suited to the expectations of a population with a highly

developed beauty culture.

4.1.3 Product Categories

The brands of L‟Oreal strive to promote the different specialties of luxury

beauty: skincare, make-up, fragrances and hair care. L‟Oreal also set out to offer

high-quality products through a selective distribution channel, and provide excellent

service that respects the diversity of its consumers. L‟Oreal product categories can be

divided into 4 elements: professional products, LUXE products, consumer products,

and active cosmetics

1. PROFESSIONAL PRODUCTS:

L‟Oreal Professional uses commonly by many of hairdressers in the world. It

combines highly effective products with exclusive services in coloring, texture, hair

care and styling products. Products are including KERASTASE, MATRIX,

REDKEN, and other famous brands.

KERASTASE represents the finest in luxury care for hair, setting new

standards in professional hair care products distributed through selected

prestigious salons, where hair is analysed in detail and the whole process

becomes a ritual of beauty for women.

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MATRIX is the #1 American professional brand and use by hairdresser all

over the world too. Matrix also supported their academy beauty in the USA.

The brand offers a wide range of hair care, hair color and hair texturizing

products including: Biolage, Total Results, So color, Color Sync, Design

Pulse and Opti.smooth..

REDKEN, brings NYC style, committed to support hairstylists with educate

and creativity as recognize for a unique mix of fashion, science and

inspiration. REDKEN products are only available in professional beauty

salons in over 50 countries.

2. LUXURY PRODUCTS:

L‟Oreal LUXE products are available at department stores, cosmetics stores,

travel retail, but also own-brand boutiques and dedicated e-commerce

websites such as LANCOME, BIOTHERM, HELENA, GIORGIO

ARMANI, SHU EUMURA.

LANCOME has become the # 1 brand in the women selective cosmetics

market by offering unique and complementary skin care, make-up and

perfume in more than 130 countries. Lancôme‟s best-sellers are: For skincare:

Visionnaire, , Rouge in Love, Teint Miracle, TeintIdole Ultra 24h; For

fragrance: La vie est belle, Trésor, Ô, Hypnôse.

BIOTHERM,uses the dry-skin customer that contain of aquatic formula.

Biotherm iconic products include: Aquasource, Blue Therapy, LaitCorporel,

Biomains and Eau Vitaminée.

3. CONSUMER PRODUCTS:.

The Consumer Products are sell in mass retailing channels such as

hypermarkets, supermarkets, drugstores and traditional stores.The aimed from this

selling so that customers can buy L‟Oreal products easily at a convenient price.

These brands offer a wide range as L‟Oreal Paris, Maybelline, and Garnier products.

Garnier, as a true skin care expert, Garnier also offers a large selection of

products, from face care to sun care. Among Garnier‟s skin care products

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some of them have a become essential such as AmbreSolair. Garnierproducts

are aim for the sun protection. It is one of the best seller in Indonesia

nowadays especially when it launched their BB Cream.

4. ACTIVE COSMETICS

The Active Cosmetics Department designs and markets dermo-cosmetic care

products sold in pharmacies and specialist sections of drugstores. Its products offer

consumers proven safety and efficacy, backed up by pharmaceutical advice and

dermatological prescription. The products are including Vichy, LA ROCHE POSAY,

SKINCEUTICALSM, and others.

The most sold brand are Vichy are known for the anti-aging. Vichy has been

helping women worldwide to take care of their beauty, whatever their age or

skin type. For example, Liftactiv, the N°1 anti-wrinkle skincare in

pharmacies, with its Serum 10 which recreates a new skin from the first

drop. Neovadiol, leading cosmetic care in pharmacies for women at

Menopause, redensifies the skin and shapes up the face and neck.

Idealia introduces a new approach to rejuvenation though transformation of

the skin quality. Aqualia Thermal takes in all the benefits of Vichy thermal

spa water to moisturize and soothe sensitive skin; Dercos has been offering

hair care products for more than 15 years and is a leader in hair loss

prevention.

LA ROCHE-POSAY products are aimed for sensitive skin customers. The

brand is also engaged with dermatologists, in several awareness campaigns on

the prevention of skin cancer. The most popular brands are: Lipikar,

Anthélios, Effaclar, Tolériane, Hydraphase, Redermic, Substiane,

Respectissime, Novalip Duo, TolerianeTeint.

SKINCEUTICALSMhelps to prevent skin from aging and correct premature

signs of aging with antioxidants. SkinCeuticals mission is to improve skin

health and fight the major signs of aging, whether they are natural or

environmental or UV exposure, pollution, stress, tabacco, etc.

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4.1.4 HAIRCODE Salon Cibubur

Haircode Salon has located in Raffles Hills Cibubur. Raffles Hills is one of

the elite house in the Cibubur Area and has more than 1,000 family units. Therre are

another houses area such as Kota Wisata, Puri Sriwedari, Citra Grand and many

others. Cibubur Area is also providing for the people to expand their business.

Haircode Salon it is one of the growing-franchisee business in Jakarta. In Cibubur

area is one of the 16 other branches and the main office located in Jakarta. Haircode

Salon Cibubur serves beauty service and products to satisfy women‟s need. The

Company has 4 hairstylists, 5 therapists, 1 cashier, and 1 office boy. Their store

hours from 9 a.m to 8 p.m from Monday-Sunday.

4.2 Data Result Analysis

The characteristic of the respondents in this research is Haircode Salon

Cibubur Customers age 30-45 years old. In this discussion, characteristic of

respondents will be displayed in form of table that is described in percentage. From

the infinite population formula of 100 respondents that give their opinion from the

statements in the questionnaire, it can be seen there are differences in the

characteristic between one respondent with the other respondents. These differences

include respondents gender, age and education. In the distributed questionnaires,

there are some data gained about the respondent characteristic:

4.2.1 The Characteristic of Respondents Based on Gender

Table 4.1 Percentage of Respondents by Gender

Gender Frequency Percentage (%)

Male 35 35%

Female 65 65%

Total 100 100%

Source: Analyzed of Primary Data, 2014

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Table IV.1 shows the composition of gender where it is shown from the total

respondents that is 100 people. Male composition is 35 people (35%) and Female is

65 people (35%).From the data above we could see that more than half of the

respondents were female, since the female customers were dominant in went to Salon

and were easier to be asked for help in order to filled in the questionnaire.

4.2.2. The Characteristics of Respondents Based on Age

Table 4.2 Percentage of Respondents by Age

Age Frequency Percentage

30 25 25 %

32 6 6%

34 10 10%

35 9 9%

36 10 10%

37 13 13%

38 11 11%

39 10 10%

40 6 6%

Total 100 100 %

Source: Analyzed of Primary Data, 2014

Table IV.2 shows the composition of age of the respondents, where it is shown from

the total respondents that is 100 people. The mostrespondents are in the age of 30

(25%) with the frequency of 25 respondents, 34 (10%) with the frequency of 10

respondents, and 36 (10%) years old with the frequency of 10 respondents.

Age 37 (13%) with the frequency of 13 respondents, age of 38 (11%) with the

frequency of 11 respondents and age of 39 (10%) with the frequency of 10

respondents.

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4.2.3 The Characteristic of Respondents Based on Education

Table 4.3 Percentages of Respondents by Education

Education Frequency Percentage

D3 13 13%

S1 55 55%

S2 22 22%

SMA 10 10%

Source: Analyzed of Primary Data, 2014

For the education background, the research can include that respondents with D3

13%, S1 55%, S2 22%, dan SMA 10%. From this research, it can make a conclusion

that the respondents or customers at HaircodeCibubur are well-educated.

4.2.4 Respondent Responses to Environmental Influences

Table 4.4 Descriptive Statistic for Environmental Influences

Descriptive Statistics

N Minimum Maximum Mean Std. Deviation

ENV1 100 1.00 5.00 2.6900 1.15203

ENV2 100 1.00 5.00 2.8700 1.06035

ENV3 100 1.00 5.00 3.0500 1.08595

ENVY4 100 1.00 5.00 2.7800 1.11537

Valid N (listwise) 100

Source: Analyzed of Primary Data, 2014

Table IV.4 shows the respondents responses to four statements about the environmental

influences. From the four statements, it can be seen that:

1. The respondents are disagree with the ENV 1 or question 1,” Ads of the brand attract

me to purchase,” to the corresponding consumer buying decision of L‟Oreal products.

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Reference group, Social, and Family situation might affect to the L‟Oreal products

consumer buying decision.

2. The respondents are neutral with the ENV 2 or question 2, “Increase of price not

hinder me to purchase,” toward consumer buying decision. Whether the price are normal

or increase, users still buying L‟Oreal products.

3. The respondents are neutral with the ENV 3 or question 3, “The Brand helps me to

better fit into my social group.”

4. The respondents are disagree with the ENV 4 or question 4,” Costumers bought

products to show their economy situation.”

5. The mean average for the four statements are 2.847 in which respondents are neutral

to the overall question,

4.2.5 Respondent Responses to Brand Image

Table 4.5 Descriptive Statistic for Brand Image

Descriptive Statistics

N Minimum Maximum Mean Std. Deviation

BA1 100 1.00 5.00 3.3400 1.04659

BA2 100 1.00 5.00 3.5000 1.12367

BA3 100 1.00 5.00 3.5100 1.06832

BA4 100 1.00 5.00 3.3900 1.08148

BA5 100 1.00 5.00 3.6600 1.00725

BA6 100 1.00 5.00 3.8600 1.02514

Valid N (listwise) 100

Source: Analyzed of Primary Data, 2014

In the table IV.5 shows the respondents responses to the six statements about the

Brand Image variable. From all six statements:

1. The respondents are neutral with the BA 1 or question, “The designs of the brand

have distinctive features,” to the corresponding consumer buying decision of L‟Oreal

products.

2. The respondents are neutral with the BA 2 or question, “Brand name and image attract

me to purchase,” toward consumer buying decision.

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3. The respondents are neutral with the BA 3 or question, “Brand name is selected

regardless of price.”

4. The respondents are neutral with the BA 4 or question,” Brand reflects my own

personality.”

5. The respondents are agree with the BA 5 or question, “The brand is reputable.”

6. The respondents are agree with the BA 6 or question, “The brand has good functional

quality.”

7. The mean average for the six statements is 3.543 in which respondents are neutral to

the overall question.

4.2.6 Respondents Response to Brand Attachment

Table 4.6 Descriptive Statistic for Brand Attachment

Descriptive Statistics

N Minimum Maximum Mean Std. Deviation

BAT1 100 1.00 5.00 2.8000 1.23091

BAT2 100 1.00 5.00 2.9300 1.11242

BAT3 100 1.00 5.00 3.0300 1.07736

BAT4 100 1.00 5.00 2.9800 1.14574

BAT5 100 1.00 5.00 2.9400 1.16185

Valid N (listwise) 100

Source: Analyzed of Primary Data, 2014

Table IV.5 shows the respondents responses to five statements about the Brand

Attachment. From the five statements, it can be seen:

1. The respondents are neutral with the BAT 1 or question, “I feel emotionally bonded to

the brands,” to the corresponding consumer buying decision of L‟Oreal products.

2. The respondents are neutral with the BAT 2 or question, “The brand products are

often on my thought and feeling naturally and instantly,” toward consumer buying

decision.

3. The respondents are neutral with the BAT 3 or question, “The products automatically

evoke many good thoughts about the past, present, and future.”

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4. The respondents are neutral with the BAT 4 or question, “Costumers have own more

than one product.”

5. The respondents are neutral with the BAT 5 or question, “The products is a part of me

on daily basis.”

6. The mean average for the five statements is 2.936 in which respondents are neutral to

the overall question.

4.2.7 Respondents Response to Consumer Buying Decision

Table 4.7 Descriptive Statistic for Consumer Decision Process

Descriptive Statistics

N Minimum Maximum Mean Std. Deviation

CONS1 100 1.00 5.00 3.0000 1.12815

CONS2 100 1.00 5.00 2.9100 1.19844

CONS3 100 1.00 5.00 3.1400 1.20621

CONS4 100 1.00 5.00 2.9000 1.29880

CONS5 100 1.00 5.00 3.0500 1.18386

Valid N (listwise) 100

Source: Analyzed of Primary Data, 2014

Table IV.6 shows the respondents responses to five statements about the Consumer

Decision. From the five statements, it can be seen that:

1. The respondents are neutral with the CONS 1 or question, “The most well-known and

advertised of the product are usually good choices to purchase.”

2. The respondents are neutral with the CONS 2 or question, “My standards and

expectations on the quality of the brands are very high.”

3. The respondents are neutral with the CONS 3 or question, “The brand last longer than

other brands.”

4. The respondents are neutral with the CONS 4 or question, “The provides good value

for the money.”

5. The respondents are neutral with the CONS 5 or question, “The access to buy the

products was easy to be found.”

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6. The mean average for the five statements is 3.00 in which respondents are neutral to

the overall question.

4.2.8 Classical Assumption

4.2.8.1 Factor Analysis:

Table 4.8 KMO and Bartlett’s Test for X-variables

KMO and Bartlett's Test

Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .849

Bartlett's Test of Sphericity

Approx. Chi-Square 853.463

df 105

Sig. .000

Source: Analyzed of Primary Data, 2014

From this research, it can conclude that the variables are reliable as it greater than 0.5

for the X variable.

Table 4.9 KMO and Bartlett’s Test for Y-variables

KMO and Bartlett's Test

Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .753

Bartlett's Test of Sphericity

Approx. Chi-Square 275.675

df 6

Sig. .000

Source: Analyzed of Primary Data, 2014

From this research, it can conclude that the variables are reliable as it greater than 0.5

for the X variable

Table 4.10 Communalities for X-variables

Communalities

Initial Extraction

ENVI 1.000 .685

ENV2 1.000 .778

ENVI3 1.000 .715

ENVI4 1.000 .730

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BA1 1.000 .743

BA2 1.000 .833

BA3 1.000 .769

BAT1 1.000 .751

BAT2 1.000 .813

BAT3 1.000 .732

Source: Analyzed of Primary

Data, 2014

From The questionnaire statement is valid if the extraction computation is bigger than

0.50. Based on the calculation, the result from pre-test questionnaire with 15 statements

for the x variable and 100 respondents and only 10 statements from 15 statements from

the X variable questionnaire are valid for the research and 5 statements will not be used.

Table 4.11 Communalities for Y-variables

Communalities

Initial Extraction

CONS1 1.000 .752

CONS2 1.000 .809

CONS3 1.000 .556

CONS4 1.000 .879

Source: Analyzed of Primary Data,

2014

From The questionnaire statement is valid if the extraction computation is bigger

than 0.50. Based on the calculation, the result from pre-test questionnaire with 5

statements from the dependent variable with 100 respondents and 4 statements from

5 statements are valid for the research and the 1 invalid statement will not be used.

Total variance

Table 4.12 Variance for X-Variables

Component Initial Eigenvalues Rotation Sums of Squared Loadings

Total % of

Variance

Cumulative

%

Total % of Variance Cumulative %

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1 2.935 29.355 29.355 2.900 28.999 28.999

2 2.475 24.752 54.107 2.330 23.300 52.299

3 2.138 21.377 75.484 2.319 23.186 75.484

4 .456 4.558 80.043

5 .446 4.456 84.498

6 .412 4.117 88.616

7 .342 3.421 92.037

8 .324 3.237 95.273

9 .250 2.496 97.770

10 .223 2.230 100.000

Source: Analyzed of Primary Data, 2014

The total variance for the X variables from the 10 staements are 73.48 %. It means

that the X-variables has a good total variance .

Table 4.13 Variance for Y-Variables

Total Variance Explained

Component Initial Eigenvalues Extraction Sums of Squared Loadings

Total % of Variance Cumulative % Total % of Variance Cumulative %

1 2.997 74.922 74.922 2.997 74.922 74.922

2 .558 13.960 88.881

3 .344 8.598 97.480

4 .101 2.520 100.000

Extraction Method: Principal Component Analysis.

Source: Analyzed of Primary Data, 2014

There are 74.922 % in all 4 statements of the y-value that has good total variance.

Rotated component matrix

Table 4.14 Rotated Component Matrix for X-Variables

Rotated Component Matrixa

Component

1 2 3

ENV2 .878

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ENVI4 .850

ENVI3 .844

ENVI .813

BA2 .898

BA3 .868

BA1 .846

BAT2 .898

BAT1 .861

BAT3 .850

Extraction Method: Principal Component

Analysis.

Rotation Method: Varimax with Kaiser

Normalization.a

a. Rotation converged in 4 iterations.

Source: Analyzed of Primary Data, 2014

It represents correlation coefficients between variables and components to deliver

information about the relationship of variable and component. There are 10

statements and spread nicely in the component. There are 4 subtest that are loaded

strongly for factor one, there are 3 subtest that are loaded strongly for factor 2, and

there are 3 subtests that are loaded strongly for factor 3.

Table 4.15 Rotated Component Matrix for Y-Variables

Component Matrixa

Component

1

CONS4 .938

CONS2 .900

CONS1 .867

CONS3 .746

Extraction Method: Principal Component Analysis.

a. 1 components extracted.

Source: Analyzed of Primary Data, 2014

There are 3 subtest that are loaded strongly for the dependent variable

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4.2.8.2 Reliability Test

Table 4.16 Reliability Test

No Variable Cronbach's

Alpha

N of

Items Reliability

1 Environmental Influence (X1) 0.868 4 Reliable

2 Brand Image (X2) 0.725 6 Reliable

3 Brand Attachment (X3) 0.817 5 Reliable

4 Consumer Buying Decision

(Y)

0.792 5 Reliable

Total of Sample 100

Source: Analyzed of Primary Data, 2014

Table 4.16 shown that each of variable in dependent and independent

variables has reliability more than 0.7 which means that all variable in this study is

very strong reliable. It also means that each of variables above is well correlated to

each other.

4.2.8.3 Normality Test

Figure 4.1 Normality Test

Figure 4.1 Histogram Graphic

Source: Analyzed of Primary Data, 2013

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Source: Analyzed of Primary Data, 2014

The normality test is done by using data which taken from the questionnaires that

had been spread to 100 respondents. Here is the histogram to show the normality test

in this questionnaire. The data can be normal if the high peek, on the middle of the

histogram or if X = 0. The requirement to continue the process or analysis if the data

has been normal. Because of the normality test is one of classic assumption test is to

fulfill all classic assumption. From the histogram above, the high peek in the

frequency of 10 in the middle position which is 0.

Figure 4.2 Normality P-Plot Graphic

Source: Analyzed of Primary Data, 2014

The data is considered normal if the plots are placed around the diagonal line and

follow the direction of the diagonal line, then the regression model comply the

normality. On the contrary, if the plots are placed far from the diagonal line, then the

regression model do not meet the requirement of normality. Based on the P-Plot, the

plots are placed around and in the same direction with the diagonal line. The data is

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distributed normally and the regression model shows the normality. This means the

data is normal.

4.2.8.4 Multicollinearity Test

In order to recognize the relationship among the independent variable,

multicollinearity test is used. Multicollinearity test analyzed by tolerance and

variance inflation factor was used in this research. Tolerance Value is should be 10%

or variance inflation factor (VIF) coefficient less than 10% because T X VIF =1.

Here is the result of data process of Multicollinearity test using Tolerance value and

VIF method in SPSS 21.0:

Table 4.17 Multicollinearity

Model Collinearity Statistics

Tolerance VIF

1

(Constant)

ENVY .998 1.002

BA .979 1.022

BAT .980 1.020

Source: Analyzed of Primary Data, 2014

In the chapter III, Multicollinearity has no detected if the tolerance is more

than 0.1 and VIF is less than 10. From the table above, it shows that the independent

variables is more than 0.1 and VIF less than 10. It can be seen that the three

independent variables tolerance score is 0.985 (more than 0.1) and VIF 1.014 (less

than 10). It can be concluded that there is no multicollinearity among those

independent variables and can be process.

4.2.8.5 Heteroscedasticity Test

Heteroscedasticity can be done by looking at the output of SPSS 21.0 scatter

plot. If there is a specific pattern like dots (points), which is forming an irregular

pattern (bumpy, widened, then narrowed), then there is the Heteroscedasticity. A

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good regression model has no Heteroscedasticity issue. Here is the result of data

process of Heteroscedasticity using SPSS 21.0:

Figure 4.3: Heterocedasticity

Source: Analyzed of Primary Data, 2014

The Heteroscedasticity is test by seeing the plots pattern in scatter plot. If the plots

spread with unwell-ordered pattern above and below 0 (zero) on Y axis, then it can be

concluded that there is no Heteroscedasticity issue. Based on the figure, the plots spread

above and below the 0 (zero) with unwell-order pattern on Y axis. The researcher can

conclude that the data has no Heteroscedasticity issue and it is a good regression model.

4.2.8.6Multiple Regression Analysis

Table 4.18 Multiple Regression Analysis

Model Unstandardized Coefficients Standardized

Coefficients

t Sig.

B Std. Error Beta

1

(Constant) 2.295 .522 4.393 .000

ENVY .466 .090 .466 5.207 .000

BA -.096 .088 -.099 -1.091 .278

BAT -.069 .095 -.066 -.728 .469

Source: Analyzed of Primary Data, 2014

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Based on the table, an equation of multiple regressions with three variables can be made

as follows:

Y = 0.466 X1 – 0.099 X2- 0.066 X3 Where:

Y = Consumer Decision Process

X1 = Environmental Influence

X2 = Brand Image

X3 = Brand Attachment

a = Constanta

a. Regression coefficient Environmental Influence variable = 0.466

In this multiple regression model, it shows that the environmental influences variable has

impact about 0.466 toward consumer decision behavior. It means that, if the

environmental influences increase/decrease one point and other variables are constant,

the consumer decision process can increase/decrease about 0.466.

4.2.8.7 F-Test (α= 5%)

F-Test is a test that used to know all the independent variable (X) toward dependent

variable (Y). Here is the result of F-Test using SPSS 21.0 software:

Table 4.19 Anova

ANOVAa

Model Sum of Squares df Mean Square F Sig.

1

Regression 21.629 3 7.210 9.724 .000b

Residual 71.178 96 .741

Total 92.807 99

a. Dependent Variable: Y1

b. Predictors: (Constant), BAT, ENVY, BA

Source: Analyzed of Primary Data, 2014

Based on the calculation of multiple regression analysis which presented in the table

above it indicates that the significance alpha is less than 0.05. It showed the number of

significance is 0.000. It means that there is significant impact both independent variables

toward dependent variables altogether. It can be concluded that there is only

environmental influence has effect toward consumer decision process altogether.

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4.2.8.8 T-Test (α = 5%)

Table 4.20 T-Test

Model Unstandardized Coefficients Standardized

Coefficients

t Sig.

B Std. Error Beta

1

(Constant) 2.295 .522 4.393 .000

ENVY .466 .090 .466 5.207 .000

BA -.096 .088 -.099 -1.091 .278

BAT -.069 .095 -.066 -.728 .469

Source: Analyzed of Primary Data, 2014

T-Test is used to know each independent variable (X) which are

Environmental Influences, Brand Image and Brand Attachment has significant

impact toward consumer decision process individually. From the table above, Brand

Image has no significant impact toward dependent variable it is because of the

significance is 0.278. The requirement is should be less than 0.05, but at the table

above it shows that the significance is 0.278 which is more than 0.05. It can also

influence to the regression model. It means that there is no significant impact from

the Brand Image toward consumer decision behavior.

From the table above, Brand Attachment has no significant impact toward

dependent variable it is because of the significance is 0.469. The requirement is

should be less than 0.05, but at the table above it shows that the significance is 0.469

which is more than 0.05. It can also influence to the regression model. It means that

there is no significant impact from the Brand Attachment toward consumer decision

behavior.

For the Environmental Influence, the significant alpha for this independent

variable is 0.000. It means that the significance is less than 0.05. It means that

environmental Influence has significant impact toward consumer decision process. It

also can answer the hypothesis, that H0 is rejected and H1 is accepted. It can

concluded that environmental has significant impact toward consumer decision

behavior.

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After the explanation above, it will give impact toward the regression model and

change the regression model to this new regression model.

Y = 2.295 + 0.466X1

It means that, the environmental influence has significant impact toward consumer

decision process.

Table 4.21 Model Summary

Model Summaryb

Model R R Square Adjusted R

Square

Std. Error of the

Estimate

1 .483a .233 .209 .86107

a. Predictors: (Constant), BAT, ENVY, BA

b. Dependent Variable: Y1

Based on the table above, the coefficient of the relationship can be seen from the value

of R. On that table, the value of adjusted R square is 0.209 which is good for only one

variable in this case environmental influence toward the dependent variable.

4.3 Interpretation of Results

1. The Impact from Environmental Influences toward Consumer Buying

Decision.

Based on the theory from Engel-Blackwell-Miniard consumer buying decision

model stated that there are variables that influence and give impact to the consumer

buying decision process, and Environmental Influences that included Culture, Social

class, Personal influences, Family, and Situation as the indicator is one of that big

variable that theory of Engel-Blackwell-Miniard consumer buying decision making

model told. Environmental influences basically have significant impact toward the

consumer buying decision process theoretically and culturally.

In today‟s society, most of people have always wanted to be fit in the society and

do not want to be the old-trend. The value of significance is less than 0.05 in which

0.466 .it means that the Environmental Influence has a significant toward consumer

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buying decision making process. In this case, L‟Oreal products are the object of the

research. It means that most people want to buy because of the L‟Oreal products are high

quality and very popular in their society.. This variable can be explained that variable Y

which is consumer buying decision process, it depends on how the audience point of

view see the L‟Oreal Products quality and image and how the response of the audiences

about that. Based on previous research, the result of this research has supported and

consumers are just as likely to purchase impulsively due to influences of advertisers,

role models, family and friends as well as their mood, situation, and emotions (Smith

and Rupp, 2003)

2. The Impact of Brand Image toward Consumer Buying Decision

Based on Engel-Blackwell-Miniard consumer buying decision making model,

brand image is a big variable that could influence and customers‟ experiential,

symbolic, functional, social, and appearance. Brand image is the other variable that

has significance impact toward consumer buying decision process. In this chapter,

It‟s already explained from the significance value is (-.0.099) which is negative

number. It shows that there is no significant impact from the brand image toward

consumer buying decision making. Theoretically, all of the statement in this

variables have supported by the respondents. It shows from the value of means which

is around 4 (agree position). All of the statement can be represent the individual

differences. It means the relationship from the individual differences toward

consumer decision process is really high from the questionnaire results. In based of

previous research Brand Image are strongly influences to the consumer buying

decision and create a high loyalty (Sondoh, Spndoh, Omar, Wahid, Harun, 2007)

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3. The Impact of Brand Attachment toward Consumer Buying Decision

Based on Engel-Blackwell-Miniard consumer decision making model, brand

attachment is a big variable that could influence and customers‟ thought, feeling,

perception, images, experience, belief, and attitude. Brand attachment is the other

variable that has significance impact toward consumer buying decision process.

In this chapter, It‟s already explained from the significance value is (-.0.066)

which is negative number. It shows that there is no significant impact from the brand

attachment toward consumer decision making. In this case the respondents have their

own opinion about L‟Oreal Products those are neutral but yet still consuming the

products. Based on the previous research, Some scholars have argued that brand

attachment depends on the degree to which consumers view the brand as being part

of themselves and reflecting who they are (e.g., Park et al. 2010). The more the brand

reflects the consumer‟s self (i.e., self-congruence) and the greater the personal

connection the consumer feels between the self and the brand, the stronger his or her

brand attachment becomes an ideal vision of themselves (an “ideal self ”).

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CHAPTER V

CONCLUSION AND RECOMMENDATION

5.1 Conclusion

The purpose of this research is to analyze the impact of the environmental

influences, brand attachment, and brand image toward the consumer buying decision

process in the case of buying L‟Oreal products. This research applied the main

theory about the environment influence, brand image, and brand attachment to

customers that can take decision and give influence to the decision process of

customer Haircode Salon in purchasing or get a service of L‟Oreal products.

Theoretically, the researcher uses multiple regression and factor analysis on this

research by using the primary data and then gets the conclusion of this research or

observation.

In conclusion of this observation or research can be shown from the

chapter IV:

1. The variable that has big influence toward the consumer decision process is the

environmental influence. According to SPSS 21. It is show from the value of

significance is less than 0.05 in which 0.466 and r value of 23 % for the 1

variable which is good for only one variable. The respondents from are neutral

as these customers has their opinion about the products itself.

2. It can be concluded that Environmental Influence, Brand Image, and Brand

Attachment has influence the dependent variable, consumer buying decision as

the result from the F-Test result that the significant alpha is less than 0.05. The

independent variables, Environmental Influence, Brand Image, and Brand

Attachment are simultant or has relationship to the dependent variable, consumer

buying decision.

3. It concluded that H0.1 is rejected and Hα.1 is accepted from the hypothesis.

Environmental Influence (X1) has significance value of 0.466 which is greater

than 0.05. It means that Environmental Influence (X1) is significance toward the

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dependent variable, Consumer Buying Decision in Haircode Salon Cibubur

users.

4. As a summary, H0.2 is accepted and Hα.2 is rejected from the hypothesis. Brand

Image (X2) has not significance value of (-0.099) which is less than 0.05. It

means that brand image (X2) is not significance toward the dependent variable,

Consumer Buying Decision in Haircode Salon Cibubur users.

5. H0.3 is accepted and Hα.3 is rejected from the hypothesis with brand attachment

(X3) IS (-0.066) in which is less than 0.05. It means that brand attachment (X3) is

not significant toward the dependent variable Consumer Buying Decision in

Haircode Salon Cibubur users.

6. In addition, the impact of environmental influence such as family, reference

group and advertising are high and effected to the other consumer buying

decision as it want to be fit in the society. Moreover, the effect of word of mouth

are also important, when there is positive word-of-mouth there is profit for the

products itself. Customers did not realize and rethink of the high price, the

customers believe that higher price will make them in high status of their society

and higher price will produce better quality despite the recall products.

7. According to F test result back in chapter 4, it can be seen that the significance

value of F test is 0.00 which is less than 0.05. From that results it can be

conclude that all of the independent variable of (environmental influence X1,

brand image X2, and brand attachment X3) has simultaneously give significant

influence toward dependent variable of consumer buying decision.

5.2. Recommendations

Based on those conclusions above and some finding in this study, there are some

possible course of action may be identified. The following recommendations are

offered as guidelines or suggestion for consideration and possible application. The

following recommendations are made:

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1. To further researchers, hopefully they could explore more about

another variables related to this topic so that they could get more

varieties of result that could give significant influence towards

Consumer Buying Decision. Based on analysis of regression, another

factor that influences consumer buying decision counted to 48%.

Those factor could be Product Quality, Brand Awareness, Customer

Loyality, Price, Overal Satisfaction, and Place.

2. The researcher thinks that most of beauty cosmetic products should more

consider about the character of their target marketing before they start to

introduce to customers. Environmental Influence can represent the

characters of people toward what things that make them want to buy

purchase products. Most of people has their opinion about products and

beauty Company products has to make strategy to win customers‟ heart by

creating a positive word-of-mouth (Solomon, 2003).

3. The researcher also suggest to the businessmen to think about the simplicity

to get the customer wants and need. It is talking about the place, price,

promotion and product. It is all about the right place, the affordable prices

even higher price but better quality and the touching promotion It can take

the willingness of the target market to spend their time and money in the

right decision (Fernandez, 2009).

4. The researcher also suggest to the businessmen to think about the simplicity

to get the customer wants and need. The research has suggestion for the

beauty products to produce higher quality and also contribute to the

environmental influence in order to be familiarizing with their customers.

For the beauty products can be higher to the other but yet still maintain their

quality. It is talking about the place, price, promotion and product (service).

It is all about the right place, the affordable prices, the touching promotion

and the quality of product or service. It can take the willingness of the target

market to spend their time and money in the right decision.

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Dear respected respondents,

My name is Linda P. Thompson a 10th

semester student of President

University majoring in International Business. As the requirement to be graduated, I

am now conducting a research for my undergraduate thesis analysing the effect of

L‟Oreal Brand Image on Consumer Buying Decision.

Therefore, I really need your participation to fill out this questionnaire. Even

so, you are not forced to fill this. If you are having difficulties to fill out this

questionnaire or you do not speak English, please contact me via e-mail at

[email protected] or via mobile phone at 0856-161-9292

Name : ___________________________________

Gender : MALE // FEMALE

Age : ___________________________________

1. Main reason to stay

Service // Product Retail // Accompanied someone

2. Income per year

<USD 50.000 // USD 50.000 – USD 200.000 // >USD 200.000

3. Information about L‟Oreal products

WEBSITE // ADVERTISING // FRIEND // OTHERS (Please specify)

This Likert-scale questionnaire consists 20 of statements. Please cross (x) the most

suitable answer of each number. The point rating scale is as follows:

SD = Strongly Disagree A = Agree N = Neutral

D = Disagree SA = Strongly Agree

Environmental Influence (X1) NO. STATEMENTS SD D N A SA

1. Ads of the brand attract me to purchase

2. Increases of price not hinder me to purchase

3. The Brand helps me to better fit into my

social group

4. Costumers bought products to show their economy

situation

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Brand Image (X2)

5. The designs of the brand have distinctive features

6. Brand Name and Image attract me to purchase

7. Brand Name is selected regardless of price

8. Brand reflects my own personality

9. The brand is reputable

10. The brand has good functional quality

Brand Attachment (X3)

11. I feel emotionally bonded to the brands

12. The brand products are often on my thought and feeling

naturally and instantly

13. The products automatically evoke many good thoughts

about the past, present, and future

14. Costumers have own more than one products

15. The products is a part of me * on daily basis

Consumer Buying Decision (Y)

16. The most well-known and advertised of the product

are usually good choices to purchase

17. My standards and expectations on the quality of the

brand are very high

18. The brand last longer than other brands

19. The provides good value for the money

20. The access to buy the products was easy to be found.

Do you have any comment or suggestion to L‟Oreal Products? If so, please kindly write it

down.