the influence of brand awareness, perceived quality, …

THE INFLUENCE OF BRAND AWARENESS,

PERCEIVED QUALITY, AND BRAND ASSOCIATION

ON CUSTOMER PURCHASE DECISION

(A CASE STUDY AT PRESIDENT UNIVERSITY

EXTENSION PROGRAM BATCH 2012)

By

Kristedy Rinto

014200900430

A thesis presented to the

Faculty of Economics President University

In partial fulfillment of the requirements for

Bachelor Degree in Economics Major in Management

March 2013

THESIS ADVISER

RECOMMENDATION LETTER

This Thesis “The Influence of Brand Awareness, Perceived Quality, and Brand

Association on Customer Purchase Decision (A Case Study at President

University Extension Program Batch 2012)” prepared and submitted by Kristedy

Rinto in partial fulfillment of the requirements for Bachelor Degree in Economics -

Major in Management, has been reviewed and found to have satisfied the

requirements for a thesis fit to be examined. We therefore recommend this thesis for

Oral Defense.

Cikarang, Indonesia, 29 January 2013

Acknowledge Thesis Advisor,

.............................................................. ......................................... Irfan Z Habsjah, MBA, CMA Purwanto, ST, MM Head, Management Study Program

PANEL OF EXAMINERS

APPROVAL SHEET

The Panel of Examiners declare that the thesis entitled “The Influence of

Brand Awareness, Perceived Quality, and Brand Association on

Customer Purchase Decision (A Case Study at President University

Extension Program Batch 2012)” submitted by Kristedy Rinto

majoring in Management, Faculty of Economics was assessed and

proved to have passed the Oral Examination on March 1, 2013.

T. Manivasugen, MBA Chair – Panel of Examiner

Sony Vinn Sutedjo, SE, MM

Examiner 1

Purwanto, ST, MM Examiner 2

DECLARATION OF ORIGINALITY

I declare that this thesis entitled “The Influence of Brand Awareness,

Perceived Quality, and Brand Association on Customer Purchase

Decision (A Case Study at President University Extension Program

Batch 2012)” 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, 29 January 2013

Researcher,

....................................... Kristedy Rinto

014200900430

ABSTRACT

Higher education is considered as one of the most valued investment for most people. As the needs of education increase the competition in private universities increase, branding is becoming as one of the most important thing to conduct in order to survive in the competition. This study aims to determine whether the factor of brand awareness, perceived quality, and brand association affects student decisions to continue his studies at the President University extension class.

These research data were collected from President University extension class student batch 2012 with 110 students’ respondents as the sample. The data were collected based on probability, random stratified sample where population were categorized into an equal category where from each category the data are taken randomly.

The most influential variable on the independent variable is the brand awareness (0.241), followed by the variable of perceived quality (0.235), then the last is the brand association variable (0.225). T test result prove that the independent variable affects the dependent variable is the decision to continue their studies at President University extension class and the coefficient of determination (adjusted R Square) obtained 0.228 which means 22% of the study decision variable can be explained by the variable of brand awareness, perceived quality, and brand association, while the remaining 78% is influenced by other variables not examined in this study. F-test result provide that brand awareness, perceived quality, and brand association has significant influence towards purchase decision simultaneously.

Key words: brand equity, purchase decision, university, consumer behavior.

ACKNOWLEDGEMENT

First of all, I wish to express my greatest gratitude to My Lord Jesus Christ who has given strength and joy to make all of this possible. I also want to thanks for my family, My Mom and Dad, Mas Ryan, and Diny for their endless support and love. I also wish to thanks to My awesome thesis advisor Mr. Purwanto, thanks for the great help with my thesis, I hope my thesis could bring any good to the campus, you’re the best. I also wish to thanks to Mr. Manivasugen, Mr. Sony, Mr. Heri, Mr. Inyo, Mrs. Jacinta, and all of the lecturers which not only give me an academic lesson but life’s lessons as well,at the bottom of my heart I express my biggest gratitude. As for my friends I wish to thanks to Elizabeth Rompis, Diovanni, Rima, Bimo, Kuye, Laila, and others who I can’t mention one by one, thank you guys you are all awesome! and not forget to mention those great people in the academic, Mr. Boy, and Mr. Agung, and the staff, thank you for your help. It was countless long journey that I am able to make all of this possible, but for all I’ve been through in this campus I would say that everything is worth it. I know no regrets. Therefore I would to share this poem Ithaca, one of my favorite:

ITHACA

When you set sail for Ithaca, wish for the road to be long,

full of adventures, full of knowledge. The Lestrygonians and the Cyclopes,

an angry Poseidon — do not fear. You will never find such on your path,

if your thoughts remain lofty, and your spirit and body are touched by a fine emotion.

The Lestrygonians and the Cyclopes, a savage Poseidon you will not encounter, if you do not carry them within your spirit,

if your spirit does not place them before you.

Wish for the road to be long. Many the summer mornings to be when

with what pleasure, what joy you will enter ports seen for the first time.

Stop at Phoenician markets, and purchase the fine goods,

nacre and coral, amber and ebony, and exquisite perfumes of all sorts,

the most delicate fragrances you can find. To many Egyptian cities you must go, to learn and learn from the cultivated.

Always keep Ithaca in your mind. To arrive there is your final destination.

But do not hurry the voyage at all. It is better for it to last many years, and when old to rest in the island,

rich with all you have gained on the way, not expecting Ithaca to offer you wealth.

Ithaca has given you the beautiful journey. Without her you would not have set out on the

road.

Nothing more does she have to give you. And if you find her poor, Ithaca has not

deceived you. Wise as you have become, with so much

experience, you must already have understood what

Ithacas mean. Constantine P. Cavafy (1863-1933)

TABLE OF CONTENTS

THESIS ADVISOR RECOMMENDATION LETTER ................................................. i PANEL OF EXAMINERS APPROVAL SHEET .......................................................... ii DECLARATION OF ORIGINALITY ............................................................................ iii ABSTRACT ...................................................................................................................... iv ACKNOLEDGEMENT .................................................................................................... v TABLE OF CONTENT .................................................................................................... vi LIST OF TABLES ............................................................................................................ ix LIST OF FIGURES ........................................................................................................... x Chapter 1: Introduction ..................................................................................................... 1 1.1 Background of the Study ................................................................................ 1

1.2 Company Profile ............................................................................................. 4

1.3 Problems Identified ........................................................................................ 5

1.4 Problems Statement ........................................................................................ 6

1.5 Research Objective ......................................................................................... 6

1.6 Significance of the Study ............................................................................... 6

1.6.1 Researcher.................................................................................................. 6

1.6.2 President University .................................................................................. 6

1.6.3 Academic ................................................................................................... 7

1.7 Theoretical Framework ................................................................................. 7

1.8 Scope and Limitations of the Study............................................................... 8

1.9 Hypothesis ....................................................................................................... 8

1.10 Definition of Terms ...................................................................................... 9

1.11 Systematic Writings ..................................................................................... 10

Chapter 2: Literature Review............................................................................................ 11

2.1 Brand ............................................................................................................... 11

2.2 Brand Equity ................................................................................................... 13

2.3 Brand Awareness ............................................................................................ 15

2.4 Perceived Quality ........................................................................................... 17

2.5 Brand Association........................................................................................... 19

2.6 Purchase Decision........................................................................................... 22

2.7 Previous Research........................................................................................... 24

Chapter 3: Methodology ................................................................................................... 26 3.1 Research Method ............................................................................................ 26

3.2 Research Time and Place ............................................................................... 26

3.3 Research Design ............................................................................................. 27

3.3.1 Variable of the Study ................................................................................ 28

3.3.2 Type of Data .............................................................................................. 29

3.3.2.1 Primary Data ................................................................................... 29

3.3.2.2 Secondary Data ............................................................................... 29

3.4 Research Instrument ....................................................................................... 29

3.4.1 Questionnaire ............................................................................................. 29

3.4.2 Likert Scale ................................................................................................ 30

3.4.3 Validity ...................................................................................................... 31

3.4.4 Reliability .................................................................................................. 33

3.4.5 Classic Assumption Test ........................................................................... 34

3.4.5.1 Normality Test ................................................................................ 34

3.4.5.2 Multicollinearity Test ..................................................................... 35

3.4.5.3 Heteroscedasticity ........................................................................... 35

3.5 Sampling Design ............................................................................................. 33

3.6 Data Analysis .................................................................................................. 37

3.6.1 Multiple Regression Analysis................................................................... 38

3.7 Hypothesis Test .............................................................................................. 38

3.7.1 Coefficient of Determination .................................................................... 38

3.7.2 F-Test (Simlutan) ...................................................................................... 38

3.7.3 T-Test (Partial) .......................................................................................... 39

Chapter 4: Analysis of Data and Interpretation of Results ............................................. 40 4.1 Characteristics of Respondents ...................................................................... 40

4.1.1 Gender ........................................................................................................ 40

4.1.2 Major .......................................................................................................... 41

4.2 Respondent Distribution Descriptive Analysis ............................................. 42

4.2.1 Brand Awareness ....................................................................................... 42

4.2.2 Perceived Quality ...................................................................................... 44

4.2.3 Brand Association ..................................................................................... 46

4.2.4 Purchase Decision ..................................................................................... 48

4.3 Model Evaluation ........................................................................................... 50

4.3.1 Normality Test ........................................................................................... 50

4.3.2 Multicollinearity Test ................................................................................ 52

4.3.3 Heteroscedasticity Test ............................................................................. 53

4.4 Regression Model ........................................................................................... 54

4.5 Hypothesis Test .............................................................................................. 55

4.5.1 Coefficient of Determination .................................................................... 55

4.5.2 F-Test ......................................................................................................... 56

4.5.3 T-Test ........................................................................................................ 57

4.6 Result Interpretation ....................................................................................... 59

Chapter 5: Conclusion and Recommendation ................................................................. 61 5.1 Conclusion ...................................................................................................... 61

5.2 Recommendations .......................................................................................... 62

5.2.1 Recommendations for President University ............................................ 63

5.2.2 Recommendations for the Next Research ................................................ 63

REFERENCES .................................................................................................................. 64

APPENDIX 1 ................................................................................................................... 68

APPENDIX 2 ................................................................................................................... 69

LIST OF TABLES

1.1 The Active Students in President University Extension Class from 2009

- 2012 .............................................................................................................................. 7

3.1 List of Indicators ............................................................................................................. 30

3.2 Validity Test .................................................................................................................... 32

3.3 Reliability Test ................................................................................................................ 34

4.1 Multicollinearity Test...................................................................................................... 52

4.2 Multiple Linear Regression ............................................................................................ 54

4.3 Coefficient of Determination .......................................................................................... 55

4.4 F-Test ............................................................................................................................... 56

4.5 T-Test ............................................................................................................................... 57

LIST OF FIGURES

1.1 Brand Awareness, Perceived Quality, and Brand Association Influence

on Purchase Decision ..................................................................................................... 7

2.1 Brand Equity Model ........................................................................................................ 14

2.2 Measurement of Brand Awareness ................................................................................ 16

2.3 Consumer Decision Process ........................................................................................... 23

3.1 Research Design .............................................................................................................. 27

4.1 Gender Distribution......................................................................................................... 40

4.2 Major Distribution ........................................................................................................... 41

4.3 Brand Awareness ............................................................................................................ 42

4.4 Perceived Quality ............................................................................................................ 44

4.5 Brand Association ........................................................................................................... 46

4.6 Purchase Decision ........................................................................................................... 48

4.7 Histogram ........................................................................................................................ 50

4.8 Normal Probability Plot .................................................................................................. 5

1

CHAPTER I

INTRODUCTION

1.1 Background of the Study

Brand is a promise to consistently provide the seller privileges, benefits, and

services to buyers (Kotler, 2010). The best brands deliver quality assurance.

Furthermore, the actual brand is a tangible value and intangible value, represented

in a trademark which is able creates its own influence on the market when it is set

correctly. Brand plays an important role, one of which is bridge the expectations

of consumers at the time the company promises something to consumers

(Durianto et al, 2004). Thus, it can be seen the emotional bond created between

consumers and companies through the brands. Competitors may offer similar

products, but they may not offer the same promise of emotional connection.

Brands that have a good perception generally would be more attractive to buy

because consumers would believe that the brand has good and reliable quality.

Therefore, at this time the brand has become an important asset in the business

world. Characteristics of the brand play a very important role in determining

whether a customer decides to trust to a brand or not. Only brands that are well

managed capable of attracting the attention of consumers and stimulate consumers

to make purchases or even repeat purchase decisions.

The increasing awareness among the people about the importance of education

has raised the needs of university. Supported by a large population of high school

students which currently stands around 8.500.000 students and steady economic

growth at 6.17%, the education sector is moving fast (Kompas, 2012).

2

Higher education institutions are realizing that higher education could be regarded

as a business-like service industry and they are beginning to focus more on

meeting or even exceeding the needs of their students. This development is

especially true for countries with a tuition-based model (DeShields et al, 2005).

Therefore private universities may consider themselves as a service based

business which aims to deliver qualified service to customers and answer to what

their customer needs. Universities developed many programs to attract their

prospective students such as developing internship program, work placement

guarantee, attractive scholarship, etc. Universities have realized that their long-

term survival depends on how good their services are and that quality sets one

university apart from the rest (Aly and Akpovi, 2001).

As any sweet deals, the education business is also tight with competition, as noted

by Suharyadi, Chairman of the Association of Private Higher Education Indonesia

(APTISI) :

“The surge in private universities (PTS) could reach 200 institutions every year.

This is simply due to the ease of getting permission. However, in reality, many

private universities provide education by ignoring quality standards" said

Suharyadi, who is also Chancellor of the Mercu Buana university, Jakarta. Year

2006/2007 for example, there are 2556 PTS, while the year 2007/2008 up to 2596

PTS (Kompas, 2010).

The tight competition between private universities demanding every institution to

push their limits to the best, and in this tight competition, brand is certainly taking

parts in affecting student’s decision.

President University is a private university with an international curriculum

standards located at Jababeka Education Park in Cikarang, Indonesia. President

University first founded in 2001, offering a Bachelor of Engineering degree. At

that time, the institution was called the School of Engineering based in Cikarang,

Bekasi. On 16 April 2004, the Ministry of Education granted President University

official status as a full-fledged university.

3

President University serves 32 major for regular class and 5 major for extension

class. Regular class is intended for high school graduate while extension class in

intended for professionals who wish to continue his education as he works. The

extension class starts on evening at 18.30.

Despite its age which considered as young, President University has been able to

attract students from local as well as abroad. There are around 3,500 students that

join to study in President University. These numbers are also contributed by the

extension class as well.

Table 1.1: The Active Students in President University Extension Class

from 2009 - 2012

Major/Year 2009 2010 2011 2012 Total

IS 13 25 47 47 132

IE 45 51 108 124 328

PR 12 19 19 32 82

MGT 21 31 69 71 192

ACC 21 24 55 55 155

*IT 10

Total 122 150 298 329 889

* IT was merged with IS in 2010

(Source: President University Academic Department)

Based on the data above it is very clear that extension class is contributing a

significant number of students to President University, moreover the trends of

active students are increasing year by year. This intrigues researcher curiosity

regarding the phenomena “How does brand play its part to bring them to President

University?” Therefore this research will analyze the brand awareness, perceived

quality, and brand association influence to the student’s decision to study in

President University extension class.

4

1.2 Company Profile

According to President University’s founder, Mr. Setyono Djuandi Darmono,

President University was built for two reasons; to become a research and

development center and to set a new benchmark in Indonesian higher education.

The founders of President University laid down the foundation and ground work

to ensure that President University will develop into a great institution of learning

where students from all parts of the world can acquire knowledge and develop

into useful, responsible citizens and future leaders.

President University is located in Jababeka Education Park in Kota Jababeka. It is

surrounded by the Jababeka Industrial Estate with more than 1,500 national as

well as multinational companies from 30 nations, such as Mulia, Unilever,

Samsung, Mattel, ICI Paint, Kraft and others. It’s location also allows students to

make use of world-class facilities such as the Jababeka Golf and Country Club

and the President Executive Club.

As an international standard university, not only are the classes conducted in

English, but President University is equipped with an international standard

curriculum which was made and developed by world-class academics. All

courses, including the state mandatory courses, are conducted in English. Students

will speak, write, learn and think in English, the global language of today.

The conceptual plan of President University was first formulated in September

1997 by Mr. S. D. Darmono, the President Director of PT Jababeka Tbk. and Prof.

Donald W. Watts, who was the President of Bond University, Queensland and

Vice Chancellor of Curtin University, Western Australia. The goal of their

proposed university was to create an institution of learning which would prepare

future leaders of industry and society by giving them the skills and experience

necessary to excel upon graduation.

5

The University officially began in 2001, offering a Bachelor of Engineering

degree. At that time, the institution was called the School of Engineering based in

Cikarang, Bekasi. On 16 April 2004, the Ministry of Education granted President

University official status as a full-fledged university.

Although still a young university, President University (PresUniv) is growing at a

tremendous rate every year. There are now around 3,500 students attending

President University from Indonesia as well as many other countries. President

University has expanded its course offerings and now offers 32 different majors in

subjects ranging from Industrial Engineering to Public Relations.

President University also offer classes for the profesionals who wishes to continue

their sudies, therefore President University extension class is provided offering 5

major; Management, Accounting, Public Relations, Industrial Engineering, and

Information Technology. Tailored to fullfilled the professionals needs, the

extension class is started on 18.30 to 21.00 which suited with the schedule of

students who worked during the office hour.

1.3 Problems Identified

In order to endure in the tight competition university has to manage its brand

towards the customers as it is play an important role in the customer purchase

decision. Based on the data obtained it can be concluded that President University

extension class students has increased year by year and hits the highest in 2012

which record 329 students. Therefore this research will study how brand

awareness, perceived quality, and brand association influences the student’s

purchase decision to study in President University extension class.

6

1.4 Problems Statement

Based on these issues then comes the question of research as follows:

1. How are brand awareness, perception of quality, and brand association

affecting students’ purchase decisions to study at President University

extension class partially?

2. How are brand awareness, perception of quality, and brand association

affecting students’ purchase decisions to study at President University

extension class simultaneously?

1.5 Research Objective

The purposes of this research are resumed in the following statements:

1. The researcher wants to find out the relationship between brand awareness,

perceived quality, and brand association towards the students decision to

study in President University.

2. The researcher wants to find out how does brand equity elements take its

role in increasing trend of students in President University extension class.

1.6 Significance of the Study

1.6.1 Researcher

This research is contributing as one of the graduation requirement for

bachelor degree. Moreover through this research, researcher

knowledge has been enhanced especially in terms of branding in the

education industry.

1.6.2 President University

For President University this research would be contributing for

President University insight especially on its brand. By finding how

does brand contributing to the customer purchase decision President

University could analyze and optimize its brand to increase its brand

value and shape a better branding strategy.

7

1.6.3 Academic

For the academic of President University this research can contribute

to extending the knowledge of branding especially in education

industry.

1.7 Theoretical Framework

Based on David Aaker theory of brand equity there are five brand equity

categories which are: brand awareness, perceived qualities, brand association,

brand loyalty, and other proprietary asset such as patents, trademarks, and channel

relationship. This research will take three elements of the brand equity which are

brand awareness, perceived quality, and brand association to analyze President

University brand, while the basic theory of customer purchase/study decision is

taken from Philip Kotler theory of purchasing decision.

Figure 1.1: Brand Awareness, Perceived Quality, and Brand Association

Influence on Purchase Decision

(Source: Framework created by researcher)

This research will prove relationship between brand awareness, brand association,

and perceived qualities to customer purchasing decision and how strong the

relationship is.

Brand

Awareness

Perceived

Quality

Brand

Association

Purchase

Decision

X1

X2

X3

Y

8

1.8 Scope and Limitations of the Study

This research was conducted at President University which focuses on President

University extension students with sample taken only from batch 2012. Because

of the limitation of time and budget, therefore sample for this research is

considered small. This research based theory also mainly use David Aaker theory

of brand equity and purchase decision theory of Philip Kotler which represents

customer study decision variable. This research only focus on 3 elements in David

Aaker theory of brand equity which are: brand awareness, perceived quality, and

brand association.

The sample of 2012 may not represent the whole batch point of view about their

brand perception of President University brand and their purchasing decision.

Therefore extensive possibilities are still open wide to explore.

1.9 Hypothesis

Hypothesis is tentative explanation (theory) that is provisionally accepted in order

to interpret certain events or phenomena, and to provide guidance for further

investigation. A hypothesis may be proven correct or wrong, and must be capable

of refutation. If it remains unrefuted by facts, it is said to be verified or

corroborated. In this research, the hypothesis that researcher intend to test are:

H1 : Brand awareness (X1) has significant influence towards purchase decision

(Y)

H2 : Perceived quality (X2) has significant influence towards purchase decision

(Y)

H3 : Brand association (X3) has significant influence towards purchase decision

(Y)

9

1.10 Definition of Terms

1. Brand Equity : Brand equity can be defined as (1) Loyalty (brand’s real or

potential price premium), (2) loyalty (customer satisfaction based), (3)

perceived comparative quality, (4) perceived brand leadership, (5)

perceived brand value (brand’s functional benefits), (6) brand

personality, (7) consumers perception of organization (trusted, admired

or credible), (8) perceived differentiation to competing brands, (9) brand

awareness (recognition & recall), (10) market position (market share),

prices and distribution coverage (Aaker, 2006).

2. Brand Awareness : The percentage of population or target market who are

aware of the existence of a given brand or company. There are two types

of awareness: spontaneous, which measures the percentage of people who

spontaneously mention a particular brand when asked to name brands in a

certain category; and prompted, which measures the percentage of people

who recognize a brand from a particular category when shown a list

(brandchannel.com).

3. Perceived quality : Perceived quality is the customer’s judgment about a

product’s overall excellence or superiority that may different from

objective quality (Zeithaml, 1988).

4. Brand Association : Brand association is the customers’ impression

regarding a certain brand. These impression may come as the effect of

many factors such as advertising, experience, or suggestion from

colleagues (Aaker,2006).

5. Purchasing Decision : Strong confidence in customers mind that the

decision which taken on purchases were right (Aaker, 2006).

10

1.11 Systematic Writings

This research will be written in systematic manners which consist five chapters:

CHAPTER I INTRODUCTION

This chapter will discuss about background of the study, company

profile, problems identification, problems statement, research

objectives, significance of the study, theoretical framework, scope

and limitation of the study, hypothesis, definition of terms, and

systematic writings.

CHAPTER II LITERATURE REVIEW

In chapter two this research would be focused on literature

review, traversing the theory of brand, brand equity, brand

awareness, perceived quality, brand association, and purchase

decision theory.

CHAPTER III METHODOLOGY

Chapter three will discuss the research methodology, research

time and place, research design, research instrument, sampling

design, data analysis and hypothesis test.

CHAPTER IV ANALYSIS OF DATA AND INTERPRETATION OF

RESULTS

Chapter four will discuss the characteristic of respondents,

descriptive analysis, validity and reliability test, model evaluation,

regression model, and hypothesis test.

CHAPTER V CONCLUSIONS AND RECOMMENDATIONS

Chapter five will discuss the conclusion and recommendation

from the researcher.

11

CHAPTER II

LITERATURE REVIEW

2.1 Brand

A brand is a name, term, sign, symbol, design or a combination of these, which is

used to identify the goods or services of one seller or group of sellers and to

differentiate them from those of competitors (American Marketing Association,

2011).

According to David Aaker (2006), “Brand is a differentiate name and symbol

(logo, tag line, trade mark, etc.) intended to identify the goods or services of either

one seller or a group of seller, and liabilities linked to a brand, its name and

symbol, that add to or subtract from the value provided by a product or service to

a firm and/or to that firms customer.”

Brand is a full set of identities that differentiates one product from another. When

a consumer reminds of a brand usually he/she would remember things associated

with the product brand such its quality, durability, service therefore consumer

rarely just see a product or service; brand remarkably shape people view about a

product.

A brand conveys a specific set of features, benefits and services to buyers. It is a

mark, a tangible emblem, which says something about the product. The best

brands, for example, often convey a warranty of quality. According Kotler and

Armstrong (2010), a brand can deliver up to four levels of meaning:

1. Attributes

A brand first brings to mind certain product attributes. For example,

Mercedes suggests such attributes as 'well engineered', 'well built',

'durable', 'high prestige', 'fast', 'expensive' and 'high resale value'.

12

The company may use one or more of these attributes in its advertising for

the car.

For years, Mercedes advertised 'Engineered like no other car in the world'.

This provided a positioning platform for other attributes of the car.

2. Benefits

Customers do not buy attributes, they buy benefits. Therefore, attributes

must be translated into functional and emotional benefits. For example,

the attribute 'durable' could translate into the functional benefit, 'I won't

have to buy a new car every few years.' The attribute 'expensive' might

translate into the emotional benefit, 'The car makes me feel important and

admired.' The attribute 'well built' might translate into the functional and

emotional benefit, that I am safe in the event of an accident'.

3. Values

A brand also says something about the buyers' values. Thus Mercedes

buyers value high performance, safety and prestige. A brand marketer

must identify the specific groups of car buyers whose values coincide

with the delivered benefit package.

4. Personality

A brand also projects a personality. Motivation researchers sometimes

ask, 'If this brand were a person, what kind of person would it be?

Consumers might visualize a Mercedes automobile as being a wealthy,

middle-aged business executive. The brand will attract people whose

actual or desired self-images match the brand's image. A brand must

deliver a promise, brand marketing is said to be a promise, which actually

exists in the minds of consumers. Brand as one of the decisions of

individual products that provide benefits to consumers and producers

(sellers) due to the brand can help consumers to identify certain products

13

which in turn will help the buying process. The stronger the difference

and distinction of a brand is the stronger brand preference of consumers.

2.2 Brand Equity

Brand Equity is the differential effect that knowing the brand name has on

customer response to the product and its marketing. It’s a measure of the brand

ability to capture consumer preference and loyalty (Kotler and Armstrong, 2010).

Knapp (2001) define brand equity as a brand valuation based on the totality of

perceptions, including the relative quality of products and services, financial

performance, customer loyalty, satisfaction, awards, and so forth. Through the

brand with strong brand equity, companies can gain control of the market by

developing a competitive and sustainable brand. The power of strong brands can

be seen from at least brand equity.

Based on definitions above it may be concluded that brand equity is a brand

identity with a set of value that differentiate one from another. A brand

encompasses the name, logo, image, and perceptions that identify a product,

service, or provider in the minds of consumer. A brand has positive brand equity

when customers react more favorably to it than to a generic or unbranded version

of the same product. It has negative brand equity if consumers react less favorably

than to unbranded version.

Brand equity approach used in this study is a customer-based brand equity

approach. Customer based approach brand equity will look from the consumer

angle. Base thinking customer-based brand equity models revealed that strength of

a brand lies in what customers seen, read, heard, learn, think, and feel about the

brand for this consumer (Kotler and Keller, 2012).

14

Figure 2.1: Brand Equity Model

Source: Adapted from Aaker, 2006

Brand equity can be grouped into five categories (Aaker, 2006), which are:

1. Brand Awareness

Indicates the ability of a potential buyer to recognize or recall that a brand is

part of a particular product category.

Perceived Quality

BRAND

EQUITY

Brand Awareness

Brand Loyalty

Brand

Association

Other

Proprietary

Brand Assets

Provide value to customer by

enhancing customer’s :

1. Intepretation/procession

of information

2. Confidence in the

purchase decision

3. Use Satisfaction

Provide value to Firm by enhancing:

1. Efficiency and effectiveness of

Marketing Programs

2. Brand Loyalty

3. Prices/Margins

4. Brand Extensions

5. Trade Leverage

6. Competitive Advantage

15

2. Brand Associations

Reflects the image of a brand of a particular impression in relation to the

habits, lifestyles, benefit, product attributes, geographic, price, competitors,

celebrities and others.

3. Perceived Quality

Reflecting the overall customer perception of quality / excellence of a product

or service with respect to the expected mean.

4. Brand Loyalty

Reflects the level of consumer engagement with a brand product.

5. Other proprietary brand assets.

2.3 Brand Awareness

Brand awareness is a factor that builds the brand, the first step for customers to

build a connection for a certain brand. Simply, if a potential customer is not aware

of the brand and the company, the consumer will not purchase the product.

Familiarity and recognition creates a foundation of trust, and to establish

additional trust in the consumer segment, it is vital that the credibility at least

exceeds the expectations of the consumers.

Brand awareness refers to whether consumers can recall or recognize a brand, or

simply whether or not consumers know about a brand (Keller, 2008). Brand

awareness precedes building brand equity. The brand name provides the memory

nodes in consumers' minds (Aaker, 2006).

Consumers may link the related brand knowledge to the brand name, which

finally constitutes brand equity. Hence, brand awareness provides a kind of

learning advantage for the brand.

16

Brand awareness affects consumer decision-making. Brands that consumers know

are more likely to be included in the consumers' consideration set. Consumers

may use brand awareness as a purchase decision determining factor. Therefore,

brand awareness increases brand market performance.

According to David A. Aaker (2006) measurement of brand awareness is based on

notions of brand awareness that includes the brand level, which is top of mind, an

increase in re-brand (brand recall), and the introduction of brand (brand

recognition), and not aware of the brand (unware of Brand).

Figure 2.2: Measurement of Brand Awareness

Source: Adapted from Aaker, 2006

Top of Mind;

Brand which first appeared in the minds of consumers when consumers were

asked about a product category that can be recalled spontaneously, without any

assistance. In other words, the brand is the major brands of different brands that

exist in the minds of consumers.

Unaware of Brand

Brand Recognition

Brand Recall

Top of Mind

17

Brand Recall;

Recall of the brand without the help of hint or information (Unaided Recall).

Brand Recognition;

Minimal level of brand awareness, where the introduction of an emerging brand

again after the recall through the aid of hint or information (Aided Recall).

Unaware of Brand.

This level is the lowest level in the pyramid of brands, where consumers are not

aware of a brand.

2.4 Perceived Quality

Perceived quality speaks for the quality perception quality of a product from a

consumer point of view which may already exposed by another information

regarding the product quality therefore sometimes the perceived quality is not

always the same as actual quality. David Aaker (2006) mentioned at least there

are four reasons regarding this situation:

1. Consumer may be overly influenced by a previous image of poor quality.

Because of this, they may not believe new claims, or they may not be

willing to take the time to verify them.

2. A company may be achieving quality on a dimension that consumers do

not consider important.

3. Consumers rarely have all the information necessary to make a rational and

objective judgment on quality and even if they do have the information,

they may lack the time and motivation to process it.

4. Because consumers may not know how to judge quality, they may be

looking at the wrong cues.

18

A perception of a quality will have a direct impact to the potential buyer, as for

example if a customer form a perception that hand phones from brand A are good,

it would form a higher possibilities for a customers to bought a product from a

certain brand. In general, the impression of quality to produce the following

values (Aaker, 2006):

1. Reasons to Buy

Limitations of information, money, and time to make one's purchase

decision is influenced by the quality of a brand impression in the minds of

consumers, so often the reason a buying decision based only on the

impression of quality (perceive quality) of the brand to be bought.

2. Differentiation / Positioning

One of the most important characteristics of the product brand is its

position in the dimensions of the impression of quality.

3. Price Premium

One of the advantages of giving the impression of quality is the choice of

space in determining premium rates. Price premium can increase the profit

that can directly improve profitability.

4. Interest in Distribution Channels

Retailers and distributors will be motivated to deliver high-quality brands.

This provides an advantage for the expansion of the distribution of these

brands and can also enhance the image of a channel distributor of brands

that have a high quality impression.

5. Expansion of Trademark

Impression of the brand with high quality can be used to introduce new

product categories and have a greater chance of success than the weak

brand. In this case the impression of quality is a significant guarantee for

brand extensions.

19

2.5 Brand Association

Brand associations are playing an important role in successful branding.

According to Aaker (2006), they “represent bases for (customer’s) purchase

decisions and for (customer’s) brand loyalty” through numbers of possible ways:

brand associations can influence customer’s interpretation of the product or

service and helping customers to create good attitudes or feelings toward it. The

way they do this is to help customers to process or retrieve relevant positive

information, as a result they can create a specific reason for customer to buy and

use the brand. This can lead to an increase in customer’s brand loyalty and to

provide a basis for brand extensions by transferring the brand name into a

new product or service. According to Keller (2003) brand association is consist

of various types which could categorize in three, which are:

1. Attribute

Attribute describes about a characteristic of a product or service in the time of

purchasing or consumption. Attributes can be distinguished according to how

directly they relate to product or service performance. Along these lines,

attributes can be classified into product-related and non-product-related

attributes.

a. Product Related

Product-related attributes are defined as the ingredients necessary for

performing the primary product or service function sought by consumers.

Hence, they relate to a product’s physical composition or a service’s

requirements.

Product-related attributes determine the nature and level of product

performance. Product-related attributes can be further distinguished

according to essential ingredients and optional features, either necessary for

a product to work or allowing for customization and more versatile,

personalized usage.

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b. Non Product Related

Non product related attributes are defined as external aspects of the product

or service that relate to its purchase or consumption. Non-product-related

attributes may affect the purchase or consumption processes but do not

directly affect the product performance. The examples of non-product-

related attributes are price information, packaging or product appearance

information, country of origin, and user imagery.

2. Benefits

Benefits are the personal value and meaning that consumers attach to the

product or service.

a. Functional Benefit

Functional Benefit is the benefit which may obtain directly with product

performance.

b. Experiential Benefit

Experiential benefits relate to what is felt when the product or service is

used and usually also correspond to both product-related attributes as well

as non-product-related attributes such as usage imagery.

c. Symbolic Benefit

They usually correspond to non-product-related attributes and relate to

underlying needs for social approval or personal expression. Symbolic

benefits are especially relevant for socially visible products.

Thus, consumers may value the prestige, exclusivity, or fashion ability of a

brand because of how it relates to their self-concepts.

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3. Attitude

Brand attitudes are defined in terms of consumers’ overall evaluations of a

brand. Brand attitudes are important because they often form the basis for

actions and behavior that consumers take with the brand. Consumers’ brand

attitudes generally depend on specific considerations concerning the attributes

and benefits of the brand. It is important to note that brand attitudes can be

formed on the basis of benefits about product-related attributes and

functional benefits and/or beliefs about non-product-related attributes,

symbolic and experiential benefits.

Collection of existing associations will form a brand image, then the image will

form associations and perceptions that can describe the state of the brand or

otherwise, do not reflect actual brand. Furthermore, brand association and

image will be associated with the brand positioning. According to Aaker

(2006) brand association can be a plus:

a. Help the process or return information, the association may be a summary

of the facts and specifications for the consumer in mind.

b. Differentiation, the association became an important basis for

differentiation by forming a unique and distinctive associations which can

be a key of competitive advantage.

c. Reason to buy, the association or the product attributes is often become the

reason for consumers to buy the product. Creating positive attitudes or

feelings, some associations to be a very desirable and stimulate a positive

attitude which is then transferred to the brand. The basis for the extension,

the association could also be the basis to extend or add a new product,

which is by creating a sense of fit and comfort of a brand name with the

new product.

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2.6 Purchase Decision

Kotler and Armstrong (2010) states that the decision to buy is taken by the buyer

is actually a collection of a number of decisions. Consumer purchasing decisions

are influenced by consumer behavior. Consumer behavior is the actions directly

involved in obtaining, consuming, and spent products and services, including the

decision process. Preceding and following on these measures (Engel et al, 2001).

Peter and Olson (2005) argue that the core of the consumer decision-making is a

process that integrates knowledge to evaluate the behavior of two or more

alternatives, and choose one of them.

Ideally, a brand can benefit from a pre-existing relationship between a set attitudes

and values and a particular product, resulting in more sales, but, when that is not

possible, the heavy lifting of creating that connection, or shifting attitudes and

beliefs becomes necessary. What is critical is to understand those values, attitudes

and beliefs.

Kotler (2007) revealed that a person may have a different role in any purchasing

decision. Various roles that may occur are as follows:

1. Decision initiative (initiator), the person who first suggested or thought of

the idea of buying a particular product or service.

2. People who affect (influence), those whose views or advice taken into

account in making a final decision.

3. Decision makers (decider), i.e, one that will determine the decision on which

product to buy, how to pay, where to make a purchase.

4. The buyer (buyer), that a person who makes a purchase.

5. User (user), the person or persons who enjoy or use the product or service.

23

According to Kotler and Armstrong (2010), there are five stages of consumer

buying behavior which are :

Figure 2.3: Consumer Decision Process

Source: Kotler and Armstrong (2010)

Need Recognition

The buying process starts with need recognition - the buyer recognizing a

problem or need. The buyer senses a difference between his or her actual

state and some desired state. The need can be triggered by internal stimuli

when one of the person's normal needs - hunger, thirst, sex - rises to a level high

enough to become a drive. From previous experience, the person has learned

how to cope with this drive and is motivated towards objects that he or she knows

will satisfy it.

Information Search

An aroused consumer may or may not search for more information. If the

consumer's drive is strong and a satisfying product is near at hand, the consumer

is likely to buy it then. If not, the consumer may simply store the need in memory

or undertake an information search related to the need.

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Evaluation of Alternatives

In conducting the purchasing decision, each consumer will try to find satisfaction.

Thus, in evaluating alternative information obtained from the search results, the

consumer will put more attention to products that can deliver benefits sought or

expected by consumers.

Purchase Decision

In this step customer is ready to take an action towards a product, strong

confidence in customer is the determining factors that he had taken the decision

on the purchase is correct (Aaker, 2006) which has the following indicators:

1. Steadiness to buy.

2. Considerations in buying.

3. Suitability attributes with the wishes and needs.

Post Purchase Behavior

After buying a product, consumers will be able to sense of whether the purchased

product is satisfactory or not. Consumers will consider whether there would be

enough until he associated with a brand that has been purchased (if not satisfied)

or whether to make a purchase again when he takes the same product.

2.7 Previous Research

The construct in this research is nevertheless refered to the previous research

about brand, which are:

1. Muhammad Shahbaz Shabbir, Shabana Kirmani, Javed Iqbal, and Bashir

Khan conducted research in 2009 entitled “Country of Origin and Brand

Names Affect on Consumer Behavior and Purchase Intention in Pakistan”.

The study focuses on the relationship between attitude and purchase

intention with respect to brand name and country of origin. Though

both indicators-attitude towards brand name and purchase intention

found to favorable for brand NOKIA and country Hungary, yet there

25

is very minor difference as compared to the other brand and country

selected in the study. This shows that customers-master level students do

not pay much attention towards the competing brand specifically on the

basis of country of origin.

2. In 2004, Bongran Jin Sun conducted research entitled “Brand Equity,

Perceived Value and Revisit Intention in the US Mid Priced Hotel

Segment”. Independent variables used are the elements of brand equity,

which consists of brand awareness, brand perception, brand association,

and brand loyalty, while the dependent variable is the customer perceived

value and revisit intentions. From the results of the research, it can be

concluded that brand loyalty and perceived quality were positively related

to perceived value, brand awareness and brand association were not

significantly related to perceived value. In revisit intention, only brand

loyalty affected revisit intention, whereas other dimensions were not

related to revisit intention. However, perceived quality had indirectly

effect on revisit intention via perceived value. Perceived value influenced

revisit intention. When compared each hotels brand equity dimensions,

brand loyalty and perceived quality were significant different, yet brand

awareness and brand association were not different among other hotels.

3. In 2011, Hendra Jonathan Sibarani conducted research entitled “The

Influence of Brand Equity Towards Purchase Decision of Telkomsel Flash

Products at Grapari Selecta Medan”. The purpose of this study was to

analyze whether brand loyalty, brand association, and brand awareness

influenced Telkomsel Flash purchase decision and whether the trust of the

brand, product quality, and price optimum has effect on brand loyalty of

Telkomsel Flash products at Grapari Selecta Medan. Regression results

show that brand loyalty variable, brand association, brand awareness

significantly influenced the purchase decision of Telkomsel Flash products

in Grapari Selecta Medan.

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CHAPTER III

METHODOLOGY

3.1 Research Method

There are two approaches in doing scientific research, qualitative research is an

unstructured, primarily exploratory design based on small samples, intended to

provide insight and understanding. Qualitative analysis is a method that is

purposed to explore the richness, depth, and complexity of the phenomena.

Qualitative research is defined as “any kind of research that produces findings not

arrived at by means of statistical procedures or other mean of quantification”

(Strauss and Corbin, 1990).

Quantitative research is a research techniques that seek to quantify data and,

typically, apply some form of statistical analysis. Quantitative analysis is trying to

measure how many people feel, think or act in a particular way.

Therefore in this research, quantitative research is more suitable because the

purpose of the research is to analyze the effect of brand awareness, perceived

quality, and brand association to the study / purchase decision.

3.2 Research Time and Place

This research was conducted in October 2012 at President University, it is an

international university, which is located at Jl. Ki Hadjar Dewantara, Jababeka,

Cikarang Baru, Bekasi, Indonesia.

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3.3 Research Design

Research design is considered as a "blueprint" for research, dealing with at least

four problems: which questions to study, which data are relevant, what data to

collect, and how to analyze the results.

According to Malhtora and Birks (2007), research design is classified into two,

exploratory and conclusive research.

Figure 3.1: Research Design

Source: Malhtora and Birks (2007)

The primary objective of exploratory research is to provide insights into and an

understanding of marketing phenomena. It is used in instances where the subject

of the study cannot be measured in a quantitative manner or where the process of

measurement cannot realistically represent particular qualities. For example, if a

researcher was trying to understand what ‘atmosphere’ meant in a restaurant,

exploratory research may help to establish all the appropriate variables and how

they connected together (Malhotra and Birks, 2007).

28

Exploratory research is more to provide understanding, the research process is

flexible and unstructured, the sample is small and non-representative, and the

analysis of primary data is qualitative.

Conclusive research is research conducted more to test specific hypotheses and

examine relationship and to measure a number of people in a particular way of

thinking. Research process is formal and structured; sample is large and aims to be

representative.

This research will use conclusive research, with descriptive approach and cross-

sectional design. Descriptive research is aim to describes market characteristics or

functions. A major difference between exploratory and descriptive research is

that descriptive research is characterized by the prior formulation of specific

research questions and hypotheses. Thus, the information needed is clearly

defined. As a result, descriptive research is preplanned and structured.

Cross-sectional designs involve the collection of information from any given

sample of population elements only once. In longitudinal designs, a fixed sample

(or samples) of population elements is measured repeatedly. In other words, the

same people are studied over time.

3.3.1 Variable of the Study

The independent variable is a variable that affects or is the cause of the onset of

the change in the dependent variable, in this study the independent variables are:

brand awareness (X1), perceived quality (X2), and brand association (X3) while

the dependent variable is purchase decision (Y).

29

3.3.2 Type of Data

3.3.2.1 Primary Data

Primary data are originated by the researcher for the specific problem under study

such as study data obtained by questionnaires. The primary data of this study is

obtained from questionnaire answered by President University extension class

Student’s from batch 2012 regardless of their major, age, or gender.

3.3.2.2 Secondary Data

Secondary data are collection of data which origin from other resources such as

journal, bureau of statistics, or the internet. The secondary data resources in this

study are collected from journal, books, and articles.

3.4 Research Instrument

3.4.1 Questionnaire

A questionnaire is a research instrument who was introduced by Francis Galton,

which consisting of a series of questions and other prompts for the purpose of

gathering information from respondents.

In this research survey techniques are based upon the use of structured

questionnaires given to a sample of a population. In structured data collection, a

formal questionnaire is prepared and the questions are asked in a prearranged

order; thus, the process is also direct. Whether research is classified as direct or

indirect is based on whether the true purpose is known to the respondents

(Malhtora and Peterson, 2007). The listed indicators to measure the brand

variables are listed in the table as follows:

30

Table. 3.1: List of indicators

No. Description Scale

Brand Awareness

1 I can quickly remember logo or symbol of President University. Likert

2 Whenever I’m asked about private university I remember President University quickly.

Likert

3 President University is well known. Likert

4 I remember one of President University commercials in the media. Likert

Perceived Quality

1 President University facilities are adequate for my study needs. Likert

2 Lecturers at President University are always give their best performance.

Likert

3 Staffs at President University are always have a good intention to help me.

Likert

4 President University staffs are consistently courteous with me. Likert

5 President University has a better quality compared to other private University.

Likert

Brand Association

1 President University is an international standard university. Likert

2 President University is an English speaking university. Likert

3 In my opinion President University is a prestigious university. Likert

4 In my opinion President University offer the best quality at the best price.

Likert

Purchase Decision

1 I am certain choosing President University as my first choice when I decide to college.

Likert

2 Another private university becomes less in consideration when I decide to study in President University.

Likert

3 I choose President University because it fits with my education needs. Likert

4 I am certain that I have taken a right decision to study at President University.

Likert

(Source: Conducted by Researcher)

3.4.2 Likert Scale

Rensis Likert (5 August 1903–3 September 1981) was an American educator and

organizational psychologist best known for his research on management styles.

One of his most popular inventions is the Likert Scale.

31

Likert Scale is a type of psychometric scale frequently used in psychology

questionnaires to measure respondents’ behavior towards the indicator of certain

subject. The method applied in this research is the survey method by using

questionnaire which used to collect the primary data. The questionnaire would be

using Likert Scale. On a survey or questionnaire, a typical Likert item usually

takes the following format:

1. Strongly disagree

2. Disagree

3. Neither agree nor disagree

4. Agree

5. Strongly agree

3.4.3 Validity

Worthen et al (1993) define validity as a stages where measurement has achieve

its goal where those measurement is used. Validity shows how much the

measurement tools capable to perform its function precisely as the researcher

expected. A measurement scale is valid the measurement do the exact thing it

should do and measure thing should be measured. If the measurement scale is not

valid then it is useless for the researcher.

32

Validity testing conducted to determine the level of validity of an instrument

measurement, the higher the level, and the more validity to show what should be

measured. The test in this research is performed with the 20 samples the

respondents outside the main sample respondents. Validity test is done by

comparing the value of r count with r table. If the value is greater than r table, the

instrument is said to be valid.

Table. 3.2: Validity Test

No. Indicator r count r table Remarks

1 Brand Awareness

- indicator 1 .466 .433 valid




2 Perceived Quality






33

(Source: Primary data processed with SPSS 17 )

From the data gathered for the pre-questioner it shows that each indicator shows

that the value of r count is above the r table which is 0.433. Therefore the

indicators are considered as valid.

3.4.4 Reliability

According to Mehrens and Lehman (1987), reliability is a consistency level

between two measurements to a same subject. Reliability may considered as a

stability of measurement value every time a measurement is applied to the same

subject, therefore reliability is mainly focus in accuracy and its results.

3

Brand Association





4 Purchase Decision




- Indicator 4 .562 .433 valid

34

A questionnaire considered as reliable if someone answers to questions are

consistent or stable over time. Testing reliability of the instrument in this study

conducted and analyzed by the technique Cronbach Alpha (α). A variable is said

to be reliable if the work for entire variable has a value above 0.60 or Cronbach

Alpha > 0.60 (Ghozali, 2005).

Table. 3.3: Reliability Test


From the data gathered for the pre-questioner it shows that each indicator shows

that the value of Cronbach Alpha is above the 0.60. Therefore the indicators are

considered as reliable.

3.4.5 Classic Assumption Test

3.4.5.1 Normality Test

A good regression model can be determined by using the graphical histogram,

which can be seen when the data have a normal distribution. According to Santoso

(2012) if the data distributed towards a bell form curve the regression model may

considered as normal.

No. Indicator Cronbach

Alpha

Remarks

1 Brand Awareness .683 Reliable

2 Perceived Quality .888 Reliable

3 Brand Association .856 Reliable

4 Purchase Decision .817 Reliable

35

Another way is to look at the spread of the data (dots) on an axis diagonal of the

graph normal probability plots (PP plots). Normality plot is a plot of observation

data which put in order based on the sample against percentage dots correlate

from standard distribution. If the data spread around the diagonal line and follow

the direction of the diagonal line, the regression model meet the assumptions of

normality (Sarwono, 2012).

3.4.5.2 Multicollinearity Test

Multicollinearity test is done by looking at the value of the variance inflation

factor (VIF). This test aims to test whether the regression model found a

correlation between the independent variables (Ghozali, 2005). Multicollinearity

test does it to see the value of tolerance and the value of inflation factor (VIF). On

the basis of the criteria, all VIF values should be around 1 and less than 5.0, while

tolerance value should be towards 1 (Santoso, 2012).

3.4.5.3 Heteroscedasticity Test

Heteroscedasticity test aims to test whether the regression model variance of the

residual inequality occurs one other observation to observation (Ghozali, 2005). If

the residual variance from one observation to observation others are still, it is

called homoscedasticity, and if different is called heteroscedasticity (Sarwono,

2012). Regression model is claimed to be feasible if the model is free of

heteroscedasticity. In this study, researchers used a scatterplot chart to test the

heteroscedasticity.

36

3.5 Sampling Design

The data were collected based on probability, random stratified sample where in

order to describe heterogen population, the population is categorized into an equal

category (strata) where from each strata sample is taken randomly (Neuman,

1994).

The population of this research sample is the students of President University

extension class from batch 2012 with the total 329 students.

Umar (2005) stated that in order to determine the minimum sample required if the

population size is known, it can be used Slovin formula as follows:

21 ( )

Nn

N e

2

329

1 329(10%)n

76.68n

Where :

n = Sample size

N = Population size

e = Margin of errors desired

Slovin formula for 10% margin of error for 329 students has resulted in 77

students as the minimum requirement for the samples. This research will take 110

respondents as the main sample which exceeds the minimum requirement

samples.

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3.6 Data Analysis

3.6.1 Multiple Regression Analysis

Regression analysis is basically the study of the dependence of the dependent

variable (tied) with one or more independent variables (free) in order to estimate

and / or predict the population mean or average value of the dependent variable

based on the value of the independent variable unknown (Santoso, 2012).

Regression analysis aim to measuring the strength of the relationship between two

or more variables, in addition regression analysis also shows the relationship

direction between the dependent variable with the independent variable. For

regression model which have independent variable consisting of two or more, is

called multiple regression.

Multiple regression analysis in this study aims to determine the influence of the

independent variable which are: brand awareness, perceived quality, and brand

association on the dependent variable which is purchase decision. The general

form of a multiple regression equation used in this study is as follows:

0 1 1 2 2 3 3Y B B X B X B X e

Where :

Y = Purchase decision

X1 = Brand awareness

X2 = Perceived quality

X3 = Brand association

B1, B2, B3… = The regression coefficients of each variable

B0 = Constanta

e = error

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3.7 Hypothesis Test

3.7.1 Coefficient of Determination (R2)

According to Sarwono (2012), Correlation (R) is used to describe the correlation

between the dependent variable and the independent variable. The strength of

correlation is categorized based on these criteria:

0 : No correlation between variables.

>0 - 0.25 : The correlations between the variables are weak.

>0.25 - 0.5 : The correlations between the variables are medium.

>0.5 - 0.75 : The correlations between the variables are strong.

>0.75 - 0.99 : The correlations between the variables are very strong.

R square (R2) is used to measure how far the model's ability to explain variation in

the dependent variable (Ghozali, 2005). R2 with the value closer to 1, meaning the

independent variables provide almost all the information needed to predict the

variation in the independent variable.

3.7.2 F-Test (Simultan)

F statistic test shows whether all the independent variables included in the model

have an influence together on the dependent variable (Ghozali, 2005). This test is

done by comparing the value of F calculated with the value of F table using a

significant level of 5%. If the count value of F is greater than F table then

simultaneously all the independent variables affect the dependent variable. In

addition, the value of probability is also reviewable. If the probability value of less

than 0.05 (for a significance level = 5%), the independent variables

simultaneously influence the dependent variable. Meanwhile, if the probability is

greater than 0.05 then the independent variables simultaneously has no effect on

the dependent variable.

39

3.7.3 T-Test (Partial)

This test shows how much influence the individual independent variables in

explaining the dependent variable (Ghozali, 2005). The hypotheses used are:

Ho : b1 ,b2 ,b3 = 0, means that independent variable does not influence

dependent variable individually.

Ha : b1 ,b2 ,b3 > 0, means that independent variable influence dependent

variable individually.

T statistical test is conducted by comparing the t value with the value of t table

using a significance level of 5%. If the t value is greater than t table then

individually independent variables would affect the dependent variable. The test

can also be done by reviewing the value of probability. If the probability value is

less than 0.05 (for a significance level = 5%), then the individual independent

variables affect the dependent variable. Meanwhile, if the probability is greater

than 0.05 then the independent variables individually had no effect on the

dependent variable.

40

CHAPTER IV

ANALYSIS OF DATA AND INTERPRETATION OF RESULTS

4.1 Characteristics of Respondents

This research was conducted at President University and the students of extension

class as the sample. Total respondents are 110 students, the data was gathered

from 12th to 30th November 2012.

The respondents are only the students from batch 2012 at President University

extension class with the classifications of gender and major.

4.1.1 Gender

Figure 4.1: Gender Distribution

(Source: Primary data gathered by Researcher)

In gender section most of respondents is led by the male with distribution of data

59 % while female is 41% of total respondent. However data distribution in

gender is also almost equally distributed with 9% difference between female

respondent and 59% male respondent.

41

4.1.2 Major

Figure 4.2: Major Distribution


Based on the figure above the distribution of respondents are almost equally

distributed with the highest population is 27 % taken from information system

then 23% taken from accounting, 21% taken from management, 15% taken from

industrial engineering, and the smallest sample are from public relation,

representing 14% from total respondent.

The processes of data gathering were mostly done by giving the questionnaire

directly to the respondents. Researcher comes directly to the respondent during

the class time by making appointment with the lecturers, therefore each of

respondents have an adequate time to fulfill each questioner indicator.

The data were collected based on probability, random stratified sample where

researcher is collecting the data randomly from each category (gender and major).

Therefore each category has their representative in the respondents’ population is

almost equally distributed.

42

4.2 Respondent Distribution Descriptive Analysis

4.2.1 Brand Awareness

Figure 4.3: Brand Awareness


Based on figure above it can be concluded:

1. On the Indicator 1 (I can quickly remember logo or symbol of President

University), only 2% of respondents answered strongly disagree and 5%

disagree, with 9% neutral however most of respondent are aware of symbol

and logo of President University, it’s proven by 54% of respondents answered

agree and 31% of respondents answered strongly agree. In this indicator most

of respondents is able to recall the logo of President University, which

indicates that most of the students have good awareness to the brand.

2. On the indicator 2 (whenever I’m asked about private university I remember

President University quickly), 1% of respondents answered strongly disagree,

5% of respondents answered disagree, 8% of respondents answered neutral,

66% of respondents answered agree, and 20% of respondents answered

strongly agree.

43

David Aaker states that top of mind brand are the brand that can be recalled

spontaneously, without any assistance. Based on the result, 86% (66% agree

with 20% of strongly agree) of respondent are having President University as

their top of mind and have a good brand recall of President University.

3. On the indicator 3 (President University is well known), 1% of respondents

answered strongly disagree, 5% of respondents answered disagree, 33% of

respondents are neutral, 40% of respondents answered agree and 21% of

respondents answered strongly agree. The sum on positive answered in this

indicator is 61% which indicates that most of respondents view President

University as a well-known, popular University. However in the neutral fronts

33% of respondents are still felt vague about the popularity of President

University.

4. On the indicator 4 (I remember one of President University commercials in the

media), 6% of respondents answered strongly disagree, 29% of respondents

answered disagree, 35% of respondents are neutral, 25% of respondents

answered agree and 5% of respondents answered strongly agree. This result

concludes that respondent is still felling vague about commercial existence in

the media. This may occur because President University may put commercial

in the media where most of the respondent not aware of (or rarely in contact

with).

Figure 4.3 portray the explanation of respondents’ view of brand awareness

variable. Based on the data most of the respondents answers agree to the brand

awareness indicators. Most of the students have a good brand recall of President

University however when it comes to the commercial, some students still feel

vague about President University commercial, which were shown by 35% neutral

and 29% disagree.

44

4.2.2 Perceived Quality

Figure 4.4: Perceived Quality



1. On the Indicator 1 (President University facilities are adequate for my study

needs), 5% of respondents answered strongly disagree and 17% disagree, 36%

neutral and 40% of respondents answered agrees; only 2% of respondents

answered strongly agree. In this indicator respondent answer are disperse, with

the sum of 42% in the agree or positive category, 36% in neutral category, and

22% in the disagree or negative category. Based on the result it may be

concluded that based on the dispersion of the answer respondent is have a

mixed feelings regarding the facilities in the President University.

2. On the indicator 2 (Lecturers at President University are always give their best

performance) only 1% of respondents answered strongly disagree, and 12% of

respondents answered disagree, 28% of respondents answered neutral, 55% of

respondents answered agree and 4% of respondents answered strongly agree.

45

Based on the indicator result with 59% in the agree category, respondent sees

the lecturers in President University as professional.

3. On the indicator 3 (Staffs at President University are always have a good

intention to help me), 2% of respondents answered strongly disagree, 10% of

respondents answered disagree, 41% of respondents are neutral, 46% of


Most of the respondent in this indicator is still dispersed between positive

category (agree and strongly agree) with the total 47% and neutral with 41%

while in the negative (disagree and strongly disagree) category is relatively

small with the sum of 12%. This indicator shows that even though the positive

category leads with slight percentage, lot of respondents are still having mixed

feelings regarding President University quality.

4. On the indicator 4 (President University staffs are consistently courteous with

me), 1% of respondents answered strongly disagree, 5% of respondents


answered agree and 6% of respondents answered strongly agree. With 64% in

the agree category, respondent sees hospitality value in President University

staffs.

5. On the indicator 5 (President University has a better quality compared to other

private university) none of the respondents answered strongly disagree, 5% of



In this indicator agree category are slightly leading with the total of 62%

however 32% are still feel confuse (neutral), and 5% on disagree with none in

strongly disagree. Even though respondents are mixed in the answered

distribution but none of respondents have a strong negative perception

regarding the quality of President University.

46

Based on figure 4.4 most of respondents distribution are on agree and neutral

category. The respondents have a mixed feeling about their perception of quality

in President University. Indicator four and five provides a unique insight by

providing a very low distribution on strongly disagree and disagree category, it

can be concluded that regarding to indicator four and five respondents still have a

mixed feelings but much less negative than other indicator in this variable with

sums only 5%.

4.2.3 Brand Association

Figure 4.5: Brand Association



1. On the Indicator 1 (President University is an international standard university),

2% of respondents answered strongly disagree and 0% disagree, 10% neutral

and 74% of respondents answered agree, with 15% of respondents answered

strongly agree.

47

Based on these result it may be concluded that international standard university

association are strongly associated with President University brand.

2. On the indicator 2 (President University is an English speaking university) only

1% of respondents answered strongly disagree with another 1% of respondents

answered disagree, 7% of respondents answered neutral, 78% of respondents

answered agree and 13% of respondents answered strongly agree. On this

indicator most of respondents agrees that President University is an English

speaking university.

3. On the indicator 3 (In my opinion President University is a prestigious

university), 1% of respondents answered strongly disagree, 4% of respondents


answered agree and 15% of respondents answered strongly agree. This

category show that with 81% in the agree category, respondent sees President

University is strongly associated as prestigious university.

4. On the indicator 4 (In my opinion President University offer the best quality at

the best price), 3% of respondents answered strongly disagree, 15% of



In this category respondents are still felling mixed about quality offered

compared to price in President University.

Based on figure 4.4 it can be concluded that most of the respondents have a strong

brand association in their mind which they can relate in their experience which are

proven from indicator 1, 2, and 3. In the indicator 4 apparently respondents still

have a mixed feeling about price and quality offered in President University.

48

4.2.4 Purchase Decision

Figure 4.6: Purchase Decision



1. On the Indicator 1 (I am certain choosing President University as my first

choice when I decide to college), 5% of respondents answered strongly

disagree and 14% disagree, 31% neutral and 43% of respondents answered

agree with 8% of respondents answered strongly agree. Based on this result

respondents still put President University as the second or third consideration

when they are choosing the place to continue their study, even though 51% of

the respondents agree that they put President University in the first place when

it comes to choosing university, half of the respondents still having a mixed

feelings as displayed by the distribution in this indicator.

2. On the indicator 2 (another private university becomes less in consideration

when I decide to study in President University) only 2% of respondents

answered strongly disagree, with another 9% of respondents answered

disagree, 32% of respondents answered neutral, 50% of respondents answered

49

agree and 7% of respondents answered strongly agree. In this indicator

respondent answer are dispersed even though the agree category still lead with

57% who agree that other universities are become less in consideration when

they decided to study in President University.

3. On the indicator 3 (I choose President University because it fits with my

education needs), 1% of respondents answered strongly disagree, 4% of



In this indicator most of the respondents (81%) are agree that they choose

President University because it fits with their education needs whether its

facilities, major availability, internships or as the English speaking university.

4. On the indicator 4 (I am certain that I have taken a right decision to study at

President University), 3% of respondents answered strongly disagree, 1% of



Most of respondents in this indicator (80%) are certain with their decision to

study in President University. This is a truly positive indicator for President

University with such high of faith from its students to bear them to their future,

it indicates respondents profound beliefs in President University.

Based on figure 4.6 it can be concluded that most of respondents distribution are

on neutral and agree category with the highest respond are on indicator 3 where

73% of the respondents agree that they choose President University because it fits

their education needs, which follows with indicator 4 where 65% of respondents

felt that they are certain with their decision to study in President University.

50

4.3 Model Evaluation

4.3.1 Normality Test

Figure 4.7: Histogram


Graphical histogram is used to determined regression model. According to

Santoso (2012) to fulfill the requirements of normality in histogram analysis, the

data should distribute towards a bell form.

Based on Figure 4.7 the data is distributed in a shape of a bell which is shown by

the curve. Therefore based on graphical histogram normality test this model has a

normal distribution.

51

Figure 4.8: Normal Probability Plot

(Source : Primary data processed with SPSS 17)

Normality plot is a plot of observation data which put in order based on the

sample against percentage dots correlate from standard distribution. If the data

spread around the diagonal line and follow the direction of the diagonal line, the

regression model meets the assumptions of normality (Sarwono, 2012). Figure

4.8 shows that the data is spread around the diagonal line and follow along the

diagonal line, therefore based on normal probability plot the data is normally

distributed.

52

4.3.2 Multicollinearity Test

Multicollinearity test is done by looking at the value of the variance inflation

factor (VIF). This test aims to test whether the regression model found a

correlation between the independent variables. Multicollinearity test does it to see

the value of tolerance and the value of inflation factor (VIF). On the basis of the

criteria, all VIF values should be around 1 and less than 5.0, while tolerance value

should be towards 1 (Santoso, 2012).

Table 4.1: Multicollinearity Test


Based on the table 4.3 each item has a VIF (variance inflation factor) and

tolerance level is close to 1 and VIF values are under 5.0 and existing around 1

which fulfill the requirements of multicollinearity test. Thereby it can be

concluded that this model of regression has no multicollinearity problem.

Coefficientsa

Model

Collinearity Statistics

Tolerance VIF

1 BAW .959 1.043

PQ .739 1.354

BASS .763 1.311

a. Dependent Variable: PURCDESC

53

4.3.3 Heteroscedasticity Test

Heteroscedasticity test aims to test whether the regression model variance of the

residual inequality occur one other observation to observation (Ghozali, 2005). If

the residual variance from one observation to observation others are still, it is

called homoscedasticity, and if different is called heteroscedasticity (Sarwono,

2012). Regression model is claimed to be feasible if the model is free of

heteroscedasticity. In this study, researchers used a scatterplot chart to test the

heteroscedasticity.

Figure 4.9: Scatterplot


Based on the figure above the data was distributed randomly without any pattern

above and below 0 on Y axis. Therefore it may concluded that heterocedasticity

does not occurred in this model hence this regression model is eligible to be used

to predict decision based on the independent variables.

54

4.4 Regression Model

Multiple linear regression analysis used to determine the influence of independent

variables on the dependent variable. Statistical calculations in a multiple linear

regression analysis were used in this research by using the computer program

SPSS for Windows version 17.0. Summary of the results of processing the data

using SPSS program are as follows:

Table 4.2: Multiple Linear Regression

Coefficientsa

Model

Unstandardized Coefficients

Standardized

Coefficients

t Sig. B Std. Error Beta

1 (Constant) 1.281 2.277 .562 .575

BAW .295 .105 .241 2.802 .006

PQ .258 .108 .235 2.399 .018

BASS .295 .126 .225 2.333 .022



Based on the data, the regression model is :

Y = 0.241X1 + 0.235X2 + 0.225X3

Regression model can be described as follows:

1. Brand Awareness (BAW) coefficient of 0.241 obtained with the positive

coefficient. This means that the greater brand awareness (X1), the bigger

increase of purchase decision (Y).

2. Perceived Quality (PQ) variable coefficients obtained for the positive

coefficient of 0.235 with a direction. This means that the greater the perceived

quality (X2), the bigger increase of purchase decision (Y).

55

3. Brand Association (BASS) coefficient of 0.225 obtained with the direction of

the positive coefficient. This means that the greater the brand association (X3),

the bigger increase of purchase decision (Y).

4.5 Hypothesis Test

4.5.1 Coefficient of Determination (R2)


According to Sarwono (2012), correlation value (R) is used to describe the

correlation between the dependent variable and the independent variable. The R

value on the table 4.5 show 0.499 which means that the correlation between

purchase decision and the three independent variables have medium strength of

correlation category which is in the range of 0.25 – 0.5 .

Coefficient of determination (R2) is used to measure how far the model's ability to

explain variation in the dependent variable (Ghozali, 2005). Coefficient of

determination value used in this research is the adjusted R square, since the

number of variable is more than two. If the table showed adjusted R square value

closer to 1 means that the independent variables provide almost all the

information needed to predict the variation in the independent variable. From the

results of calculations using the SPSS program coefficient of determination

(Adjusted R Square) obtained 0.228.

Table 4.3: Coefficient of Determination ( R2)

Model Summary

Model R R Square Adjusted R Square

Std. Error of the

Estimate

1 .499a .249 .228 2.31479

a. Predictors: (Constant), BASS, BAW, PQ

56

This means that 22.8% of customer purchase decisions can be explained by the

variable brand awareness, perceived quality, and brand association, while the rest

of the 77.2% of customer purchase decisions can be explained by other variables

not examined in this study.

4.5.2 F-Test

Table 4.4: F-test

ANOVAb

Model Sum of Squares df Mean Square F Sig.

1 Regression 188.216 3 62.739 11.709 .000a

Residual 567.975 106 5.358

Total 756.191 109


b. Dependent Variable: PURCDESC


F statistic test shows whether all the independent variables included in the model

have an influence together on the dependent variable (Ghozali, 2005). This test is

done by comparing the value of F calculated by the value of F table using a

significant level of 5%. If the count value of F is greater than F table then

simultaneously all the independent variables affect the dependent variable.

In addition, F statistic test can also reviewed from the value of probability result.

If the probability value of less than 0.05 (for a significance level = 5%), the

independent variables simultaneously influence the dependent variable.

Meanwhile, if the probability is greater than 0.05 then the independent variables

simultaneously has no effect on the dependent variable.

57

From the calculation using the SPSS statistical count obtained F = 11.709 it means

that the F-value is above the F table which is 2.69, along with a significance level

of 0.000 (significance level less than 0.05). This means that brand awareness,

perceived quality, and brand association has significant influence to customer

purchase decision.

4.5.3 T-Test

To test the significance of regression models for each variable can be partially

achieved by using the t test. The following table will explain each variable testing

partially.

Table 4.5: T-test

Coefficientsa

Model


Standardized

Coefficients


1 (Constant) 1.281 2.277 .562 .575

BAW .295 .105 .241 2.802 .006

PQ .258 .108 .235 2.399 .018

BASS .295 .126 .225 2.333 .022



1. Brand Awareness

Ho: X1 = 0: Brand awareness (X1) has no significant effect on purchase decision

(Y).

Ha: X1 > 0: Brand awareness (X1) has significant effect on purchase decision (Y).

58

The test results obtained with SPSS for variable X1 (brand awareness) obtained t

value = 2.802 above the t table = 1.65936, which means that Ho is rejected and Ha

accepted. The positive result (0.241) on regression coefficient means that brand

awareness has a significant positive influence on purchase decisions. In other

words, it can be concluded that the higher brand awareness (X1), the higher

customer purchase decision (Y) on President University.

2. Perceived Quality

Ho: X2 = 0: Preceived quality (X2) has no significant effect on purchase decision

(Y).

Ha: X2 > 0: Perceived quality (X2) has significant effect on purchase decision

(Y).

The test results obtained with SPSS for variable X2 (perceived quality) obtained t


accepted. The positive result (0.235) on regression coefficient means that

perceived quality has a significant positive influence on customer purchase

decisions. In other words, it can be concluded that the higher perceived quality

(X2), the higher customer purchase decision (Y) on President University.

3. Brand Association

Ho: X3 = 0: Brand association (X3) has no significant positive effect on purchase

decision (Y).

Ha: X3 > 0: Brand association (X3) has significant positive effect on purchase

decision (Y).

The test results obtained with SPSS for variable X3 (brand association) obtained t


accepted. The positive result (0.225) on regression coefficient means that brand

association has a significant positive influence on customer decisions. In other

59

words, it can be concluded that the higher brand association (X3) the higher

customer purchase decision (Y) on President University.

4.6 Result Interpretation

1. Simultan Towards Purchase Decision (Y)

Researcher found that from the calculation using the SPSS statistical count

obtained F = 11.709 above the table which is 2.69 with a significance level of

0.000 (significance level less than 0.05). This means that brand awareness,

perceived quality, and brand association has significant influence to customer

purchase decision simultaneously.

2. Brand Awareness (X1) Towards Purchase Decision (Y)

The test results obtained with SPSS for variable X1 (brand awareness) obtained t


accepted. Brand awareness variable indicate a positive and significant effect and

also become one of the deciding factors on customer purchase decisions. This

analysis is supported by the result on multiple linear regressions with 0.241 which

are the highest. These results suggest that consumer awareness of a brand will

have a role in helping consumers decide. Thus, the brand awareness will create the

greatest opportunity for a person to choose a product brand. In the descriptive

analysis most of the respondents claimed that President University has a good

brand awareness which are proven by the ability of the respondents to remember

President University elements quickly these results support the concept of the

brand as stated by Aaker (2006) high brand awareness of one's will to create value

that will eventually become a source of reference in decision making. However in

the descriptive analysis respondent still feeling vague about the existence of

President University in the media (such as commercial, advertorial, etc).

60

3. Perceived Quality (X2) Towards Purchase Decision (Y)

The test results obtained with SPSS for variable X2 (perceived quality) obtained t


accepted which concludes that perceived quality has a significant positive

influence on customer purchase decisions. Perceived quality variable (X2) has a

positive effect on customer purchase decisions (Y) with multiple linear regression

result on 0.235 which are the second highest. These results indicate that a good

perception of the quality of products / service will encourage consumers to make a

purchase interest in the product / service. If the customer sees a product or service

can satisfy the desires of the consumer, then the consumer will give a positive

assessment of the product. Improved decision and choices in terms of the

purchasing process means increasing product brand equity of the brand product.

The respondent data on the questionnaire in the description analysis shows that

most of the respondents still have a mixed perception of quality on President

University extension class.

4. Brand Association (X3) Towards Purchase Decision (Y)

The test results obtained with SPSS for variable X3 (brand association) obtained t


accepted, it conclude that brand association has a significant positive influence on

purchase decision. The positive result (0.225) on regression coefficient concludes

that the higher brand association, the higher customer purchase decision on

President University. These results suggest that the association of the brand can

also help in creating a purchase decision. The descriptive analysis of brand

association shows that most of the respondents agree that they can relate to the

President University. As noted by Aaker (2006) that brand association can be a

plus factor for purchase decision, as brand association gives customer a help in

relating to the product, differentiate the product, and even giving the customer a

reason to buy the product.

61

CHAPTER V

CONCLUSION AND RECOMMENDATION

5.1 Conclusion

The importance of brand is inevitable. Brand represents products on peoples mind,

therefore a perception of a brand is not always the same as the actual product

whether its quality or association. This research will take three elements of the

brand equity which are brand awareness, perceived quality, and brand association

to analyze President University brand, while the basic theory of customer

study/purchase decision is taken from Philip Kotler theory of customer purchasing

decision.

The research method used in this research is quantitative method with the primary

data of 110 extension students batch 2012 as sample. The data were collected

based on probability, random stratified sample where in order to describe

heterogen population, the population is categorized into an equal category (strata)

where from each strata sample is taken randomly (Neuman, 1994) therefore each

category has its representative in the sample. The number of the sample for this

research is 110 respondents. Based on the analysis and research that has been

done, this research can be concluded as follows:

1. Based on the results of multiple linear regressions analysis was done in this

study, obtained regression equation as follows:

Y = 0.241X1 + 0.235X2 + 0.225X3

From the regression equation it can be seen that the coefficients of the

regression equation is positive. So it can be concluded as follows:

a. Brand awareness (X 1) has a positive influence on purchase decisions (Y)

with a coefficient of 0.241. The T-test result for variable X1 (brand

62

awareness) shows that brand awareness has a significant positive effect on

customer purchase decision. This result concludes means an increase

customer awareness of a brand will also boost customers' purchase

decisions on President University extension class.

b. Perceived quality (X2) has a positive effect on purchase decisions (Y) with

a coefficient of 0.235. The T-test result for variable X2 (perceived quality)

shows that perceived quality has a significant positive effect on customer

purchase decision. This result shows that the higher perception of quality

towards the brand, the higher customers' purchase decisions on President

University extension class.

c. Brand associations (X3) has a positive influence on purchase decision (Y)

with a coefficient of 0.225. The T-test result for variable X3 (brand

association) shows that brand association has a significant positive effect

on customer purchase decision. This result shows that the more a brand is

associated in the customers mind, the more they are encourage for a

purchase decision.

2. Researcher found that from the calculation using the SPSS statistical count

obtained F = 11.709 above the table which is 2.69 with a significance level of

0.000 (significance level less than 0.05). This means that the customers

purchase decision can be explained and significantly influenced by the brand

awareness, perceived quality, and brand association simultaneously.

3. The R value (correlation) shows that that the correlation between the

independent and dependent variable has a medium correlation strength with

0.499 as the R value. In this research coefficient of determination R2

(Adjusted R Square) obtained 0.228.

This means that 22.8% of customers purchase decision can be explained by

the variable brand awareness, perceived quality, and brand association, while

the rest of the 77.2% of customer decisions can be explained by other

variables not examined in this study.

63

5.2 Recommendations

5.2.1 Recommendations for President University

Based on the result of this research, researcher would like to recommends:

1. Increase promotional activity, as the description analysis shows that the

respondents having mixed feelings against President University extension

class commercial awareness. An increase in promotional activity will

further increase the student’s awareness especially towards the extension

class.

2. Increase brand significance, as the adjusted R square value resulted in

0.228 which implies that the brand awareness, perceived quality and

brand association only explained 22.8% of customer decision regarding

their decision to continue their study while the 77.2% is explained by

other variables regarding customer purchase decision. This result giving

an insight that brand is still not the main factors regarding customer

decision to study in extension class. The other might be the price, the

location, or the availability of wide range major. Researcher would

suggest President University to improve the brand equity value to increase

the brand impact. As the good brand value will increase the perception of

President University brand in the face of the students and the company as

well.

5.2.2 Recommendations for the Next Research

This research was motored to find out how does brand play its role behind an

enormous increase of students in President University, and since the research is

only review the brand impact on student study decision it’s not providing a total

insight. Personally the researcher would recommended a research that analyze the

decision based on 4p (price, place, promotion, and product) theory.

64

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http://chicagoama.org/behind-branding-scenes, retrieved 30 November 2012.

68

APPENDIX 1

Research Questionnaire

Bachelor Program

President University, No.

Questionnaire . . .

Dear Sir/Madam,

My name is Kristedy Rinto student from President University Bachelor program

in Management major, who is currently conducting a research about the influence

of brand awareness, perceived quality, and brand association to study decision at

President University extension program.

I kindly ask you if I may have your time to fulfill this questionnaire. Your

response is completely voluntary and will be kept strictly confidential. The result

of your questionnaire will be used as statistical data to help this study.

I am very thankful for your time by helping this study.

Regards,

Kristedy Rinto

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Part I (Respondent Profile)

Please give your opinion by marking (X) on the multiple choice.

1. Sex?

a. Male

b. Female

2. Major?

a. Management (MGT)

b. Accounting (ACC)

c. Public Relation (PR)

d. Industrial Engineering (IE)

e. Mechanical Engineering (ME)

f. Information System(IS)

3. Batch?

a. 2008

b. 2009

c. 2010

d. 2011

e. 2012

70

Question part II

1. Give your opinion with mark (√) or (X) in the column provided some of the

statements below:

SD = Strongly Disagree

D = Disagree

N = Neutral

A = Agree

SA = Strongly Agree

Brand Awareness

No Description SD D N A SA

1 I can quickly remember logo or symbol of President University.

2 Whenever I’m asked about private University I remember President University quickly.

3 President University is well known.

4 I remember one of President University commercials in the media.

71

Perceived Quality

Brand Association


1 President University facilities are adequate for my study needs.

2 Lecturers at President University are always give their best performance.

3 Staffs at President University are always have a good intention to help me.

4 President University staffs are consistently courteous with me.

5 President University has a better quality compared to other private University.


1 President University is an international standard University.

2 President University is an English speaking University.

3 In my opinion President University is a prestigious university.

4 In my opinion President University offer the best quality at the best price.

72

Study Decision


1 I am certain choosing President University as my first choice when I decide to college.

2 Another private University becomes less in consideration when I decide to study in President University.

3 I choose President University because it fits with my education needs.

4 I am certain that I have taken a right decision to study at President University.

73

APPENDIX 2

VALIDITY

Brand Awareness (X1)

Item-Total Statistics

Scale Mean if

Item Deleted

Scale Variance if

Item Deleted

Corrected Item-

Total Correlation

Cronbach's

Alpha if Item

Deleted

Q1 9.9000 4.095 .466 .617

Q2 10.2500 3.882 .483 .606

Q3 10.2500 3.776 .463 .623

Q4 11.1500 4.555 .468 .624

Perceived Quality (X2)


Scale Mean if

Item Deleted

Scale Variance if

Item Deleted

Corrected Item-

Total Correlation

Cronbach's

Alpha if Item

Deleted

Q1 12.3500 8.871 .814 .846

Q2 11.9500 9.945 .635 .884

Q3 12.2000 8.695 .789 .850

Q4 12.1000 9.042 .708 .868

Q5 12.0000 8.211 .724 .869

Brand Association (X3)


Scale Mean if

Item Deleted

Scale Variance if

Item Deleted

Corrected Item-

Total Correlation

Cronbach's

Alpha if Item

Deleted

Q1 10.3000 4.642 .767 .791

Q2 10.1500 4.976 .891 .736

Q3 10.1000 6.411 .534 .878

Q4 10.8500 5.713 .642 .840

74

Purchase Decision (Y)


Scale Mean if

Item Deleted

Scale Variance if

Item Deleted

Corrected Item-

Total Correlation

Cronbach's

Alpha if Item

Deleted

Q1 10.6000 6.674 .715 .737

Q2 10.2500 8.197 .574 .801

Q3 10.0500 8.050 .752 .722

Q4 9.6000 9.621 .562 .807

RELIABILITY

Brand Awareness (X1)

Reliability Statistics

Cronbach's

Alpha N of Items

.683 4

Perceived Quality (X2)


Cronbach's

Alpha N of Items

.888 5

Brand Association (X3)


Cronbach's

Alpha N of Items

.856 4

75

Purchase Decision (Y)


Cronbach's

Alpha N of Items

.817 4

NORMALITY TEST

76

MULTICOLLINEARITY TEST

Coefficientsa

Model

Collinearity Statistics

Tolerance VIF

1 BAW .959 1.043

PQ .739 1.354

BASS .763 1.311


77

HETEROSCEDASTICITY TEST

MULTIPLE LINEAR REGRESSION

Coefficientsa

Model


Standardized

Coefficients


1 (Constant) 1.281 2.277 .562 .575

BAW .295 .105 .241 2.802 .006

PQ .258 .108 .235 2.399 .018

BASS .295 .126 .225 2.333 .022


78

F-TEST (ANOVA)

ANOVAb

Model Sum of Squares df Mean Square F Sig.

1 Regression 188.216 3 62.739 11.709 .000a

Residual 567.975 106 5.358

Total 756.191 109


b. Dependent Variable: PURCDESC

COEFFICIENT OF DETERMINATION ( R2)

Model Summary

Model R R Square Adjusted R Square

Std. Error of the

Estimate

1 .499a .249 .228 2.31479


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