DOES IMAGE OF COUNTRY-OF-ORIGIN MATTER TO BRAND EQUITY IN JAKARTA? THESIS

Transcription

1 DOES IMAGE OF COUNTRY-OF-ORIGIN MATTER TO BRAND EQUITY IN JAKARTA? THESIS By DONNY NUGRAHA ( ) BINUS UNIVERSITY INTERNATIONAL BINUS UNIVERSITY JAKARTA 2009

2 DOES IMAGE OF COUNTRY-OF-ORIGIN MATTER TO BRAND EQUITY IN JAKARTA? THESIS Proposed as a requirement obtaining Sarjana Degree at Marketing Department Education Level Strata-1 (Sarjana/Bachelor) By DONNY NUGRAHA ( ) BINUS UNIVERSITY INTERNATIONAL BINUS UNIVERSITY JAKARTA 2009 ii

3 DOES IMAGE OF COUNTRY-OF-ORIGIN MATTER TO BRAND EQUITY IN JAKARTA THESIS Prepared by Donny Nugraha Approved by Supervisor Sri Indah Sari Hardono, MBA BINUS UNIVERSITY INTERNATIONAL BINUS UNIVERSITY JAKARTA 2009 iii

4 PREFACE Gratitude I express to Allah S.W.T for graciousness during and upon the completion of the thesis titled Does image of country-of-origin matter to brand equity in Jakarta in timely manner as a requisite to obtain a Sarjana Degree in Bina Nusantara International University, School of Marketing. The author realizes that this thesis is far from perfect due to the inexperience and knowledge limitation that author possessed. Nevertheless, the author tried to perform the best to accomplish the very best. Critics and recommendation would be very helpful in order to amend the mistake and inaccuracy of this thesis. The successfulness of this thesis is because help and contribution of all close people around. Therefore, it is a must for the author to show a lot of appreciation, I would like to thank you the following people: 1. Mr. Minaldi Loeis, the Program Director of BiNus International University 2. Ms. Sri Indah Sari Hardono, MBA, as Thesis Supervisor, for her time, support, and spirit during the completion of this thesis and during my study in BiNus International University 3. Ms. Tara Farina, as the Head of Marketing School for her kind support and guidance during my study in BiNus International University. 4. All Lecturers in Bina Nusantara International University for giving the valuable knowledge. 5. Beloved family, Mother and Father, and not forget my brothers for morale support, material support and pray during my study in BiNus International University. 6. Thanks to my all friends who always supporting me, Christina Nana, Kartika Kurnelly, Sella Juliani,, Vina Vionita,, Achmad Pradipta, Adhitya Satriadi, Advan Satriopandu, Asidiki Budi, Dinar Gityandradetta Edgar Kharismaraldi, Eleonard Gabriel, Gema Ramadhan, Herman Josef Satrio,, M. Essam, M. Fendyan, M. Miftah, Reza Kumbara and Leo Pradana my thesis partners. v

5 Thanks to all parties that can not be mentioned one by one, thanks for giving morale and spirit, might Allah S.W.T bless you all. Lastly, the author hopes that this thesis can be useful and valuable for all people, reader, especially for Marketers. Jakarta, January 5 th 2009 Donny Nugraha vi

6 TABLE OF CONTENTS Cover Page... i Title Page.....ii Certificate of Approval for Softcover copy... iii Abstract... iv Preface...v Table of Contents... vii List of Tables...x List of Figures... xii List of Appendices... xiii CHAPTER 1 INTRODUCTION Background Method of Yasin, Noor, and Mohamad, as the Basis of the Research Scope Objectives Benefits Hypothesis Thesis Structure...11 vii

7 CHAPTER 2 THEORETICAL FOUNDATION Conceptual Framework Brand Equity Brand Equity Dimension and Brand Equity Consumer Behavior Country-of-origin...18 CHAPTER 3 RESEARCH METHODOLOGY Research Methodology Questionnaire Development Sampling Data Analysis Method...25 CHAPTER 4 RESULT ANALYSIS Data Collection Method Research Findings Demography Result Apple Honda Samsung Overall Analysis of Factor analysis Hypothesis Testing Apple Hypothesis Testing Honda Hypothesis Testing Samsung Hypothesis Testing viii

8 CHAPTER 5 CONCLUSIONS AND RECOMMENDATIONS Conclusions Business Implications Research Limitations Recommendation for Further Research...67 REFERENCE APPENDICES...70 CURRICULUM VITAE ix

9 LIST OF TABLES Table 1 Frequency of Gender (Apple)...27 Table 2 Frequency of Age (Apple)...28 Table 3 Frequency of Ethnicity Group (Apple)...28 Table 4 Frequency of How often have you changed your laptop in last five years?...29 Table 5 Frequency of Does your closes environment influence you in choosing a brand for laptop?...30 Table 6 Frequency of The most influential person in choosing a brand for laptop?...30 Table 7 Frequency of The most important person to discuss with before purchasing laptop?...30 Table 8 Frequency of Gender (Honda)...31 Table 9 Frequency of Age (Honda)...31 Table 10 Frequency of Ethnicity Group (Honda)...32 Table 11 Frequency of Average Income per Month (Honda)...32 Table 12 Frequency of How often have you changed your car in last five years?...32 Table 13 Frequency of Job Position (Honda)...32 Table 14 Frequency of The most influential person in choosing a brand for car?...33 Table 15 Frequency of The most important person to discuss with before purchasing car?...34 Table 16 Frequency of Gender (Samsung)...34 Table 17 Frequency of Age (Samsung)...35 Table 18 Frequency of Ethnicity Group (Samsung)...35 Table 19 Frequency of Education Level (Samsung)...35 Table 20 Frequency of How often have you changed your TV in last five years?...36 x

10 Table 21 Frequency of The most important person to discuss with before purchasing TV?...36 Table 22 KMO index of each variable...38 Table 23 Exploratory Factor Analysis and Scale Reliability for Brand APPLE...39 Table 24 Total Variance Explained of Country of Origin Image APPLE...39 Table 25 Total Variance Explained of Brand Equity Dimensions APPLE...39 Table 26 Total Variance Explained of Brand Equity APPLE...40 Table 27 Reliability Testing APPLE...41 Table 28 Exploratory Factor Analysis and Scale Reliability for Brand HONDA...42 Table 29 Total Variance Explained of Country of Origin Image HONDA...43 Table 30 Total Variance Explained of Brand Equity Dimensions HONDA...43 Table 31 Total Variance Explained of Brand Equity HONDA...43 Table 32 Reliability Testing HONDA...44 Table 33 Exploratory Factor Analysis and Scale Reliability for Brand SAMSUNG...45 Table 34 Total Variance Explained of Country of Origin Image SAMSUNG...46 Table 35 Total Variance Explained of Brand Equity Dimensions SAMSUNG...46 Table 36 Total Variance Explained of Brand Equity Dimensions SAMSUNG...46 Table 37 Reliability Testing SAMSUNG...47 Table 38 The Effect of Dimensions of Brand Equity on Brand Equity APPLE...49 Table 39 The Effect of COO on Dimensions of Brand Equity APPLE...50 Table 40 The Effect of COO on Brand Equity (Model 1) APPLE...51 Table 41 Relationship between COO Image and Brand Equity Mediated by Dimensions of Brand Equity (Model 2) APPLE...52 Table 42 The Effect of Dimensions of Brand Equity on Brand Equity HONDA...54 Table 43 The Effect of COO on Dimensions of Brand Equity HONDA...55 xi

11 Table 44 The Effect of COO on Brand Equity (Model 1) HONDA...56 Table 45 Relationship between COO Image and Brand Equity Mediated by Dimensions of Brand Equity (Model 2) HONDA...56 Table 46 The Effect of Dimensions of Brand Equity on Brand Equity SAMSUNG...58 Table 47 The Effect of COO on Dimensions of Brand Equity SAMSUNG...59 Table 48 The Effect of COO on Brand Equity (Model 1) SAMSUNG...61 Table 49 Relationship between COO Image and Brand Equity Mediated by Dimensions of Brand Equity (Model 2) SAMSUNG...61 xii

12 LIST OF FIGURE Figure 1.1 Effect of Country-of-origin on Perceived Price and Quality of Medicine...3 Figure 1.2 Effect of Country-of-Origin on Perceived Price and Quality of Cosmetic...4 Figure 1.3 Country Image for Electronic Product...4 Figure 1.4 Brands of Working Attire...6 Figure 1.5 Brand of Home Theater...7 Figure 2.1 Conceptual Framework of Brand Equity...13 Figure 4.1 Mediating Effect of Brand Dimension of Brand Equity on Brand s... Country-of-origin image Brand Equity Relationship (Apple)...53 Figure 4.2 Mediating Effect of Brand Dimension of Brand Equity on Brand s... Country-of-origin image Brand Equity Relationship (Honda)...57 Figure 4.3 Mediating Effect of Brand Dimension of Brand Equity on Brand s... Country-of-origin image Brand Equity Relationship (Samsung)...62 xiii

13 LIST OF APPENDICES Appendix I : Sample of Questionnaire (Apple) Appendix II: Sample of Questionnaire (Honda) Appendix III: Sample of Questionnaire (Samsung) Appendix IV: Result of Demographic Data, Factor Analysis and Regression Analysis for APPLE Brand Appendix V: Result of Demographic Data, Factor Analysis and Regression Analysis for HONDA Brand Appendix VI: Result of Demographic Data, Factor Analysis and Regression Analysis for SAMSUNG Brand Appendix VII: Original Journal: Does Image of Country-of-Origin Matter to Brand Equity xiv