intention of super premium milk formula from mead …
TRANSCRIPT
“THE EFFECT OF PROMOTIONAL MIX AND
PERCEIVED QUALITY ON MOTHER’S PURCHASE
INTENTION OF SUPER PREMIUM MILK
FORMULA FROM MEAD JOHNSON COMPANY IN
JAKARTA”
By
Nesia Lisa Pertiwi
015201000021
A Skripsi Presented to the
Faculty of Business President University
In partial fulfilment of the requirements for
Bachelor Degree in Business Administration
January, 2014
i
PANEL OF EXAMINERS
APPROVAL SHEET
The Panel of Examiners declare that the skripsi entitled “The
Effect of Promotional Mix and Perceived Quality on
Mother’s Purchase Intention of Super Premium Milk
Formula from Mead Johnson Company in Jakarta” that
was submitted by Nesia Lisa Pertiwi majoring in Business
Administration from the Faculty of Business and International
Relations was assessed and approved to have passed the Oral
Examinations on February 5th
, 2014.
T.Manivasugen,MBA
Chair-Panel of Examiners
Drs. Agus B. Adidi,M.A,C.C.A
Examiner I
Suresh Kumar,ST,M.SI Examiner II
ii
SKRIPSI ADVISER
RECOMMENDATION
LETTER This skripsi entitled “The Effect of Promotional Mix and Perceived
Quality on Mother’s Purchase Intention of Super Premium Milk
Formula from Mead Johnson Company in Jakarta” prepared and
submitted by Nesia Lisa Pertiwi inpartial fulfillment of the requirements
for the degree of Bachelor of Business Administration in the Faculty of
Business Administration has been reviewed and found to have satisfied
the requirements for a thesis fit to be examined.
I therefore recommend this skripsi for Oral Defense
Cikarang,Indonesia, 28 January 2014 Acknowledged by, Recommended by,
A.B.M. WITONO, Ph.D Suresh Kumar,ST,M.SI
Head of Business Administration
Study Program Advisor
iii
DECLARATION OF ORIGINALITY
I declare that this skripsi, entitled “The Effect of Promotional Mix and
Perceived Quality on Mother’s Purchase Intention of Super Premium Milk
Formula from Mead Johnson Company in Jakarta” is the best of my
knowledge and belief, an original piece of work that has no help was sought from
an external professional agency and has not been submitted, either in whole or on
part, to another university to obtain a degree.
Cikarang, Indonesia, 28 January 2014
Nesia Lisa Pertiwi
iv
Abstract
One of the FMCG industry in pediatrics nutrition come in time on era
globalization which commonly known as an instant era, so in this study appoint a
fact of demand of milk in Indonesia keep increasing this leads by the healthy life
awareness trigger by the milk campaign. This study aim to discuss influence of
promotional mix as a modern marketing tools which is consist of advertising,
sales promotion and direct marketing together with perceived quality toward
purchase intention on super premium milk formula among Indonesian Women
group Whose represent the participant of the data collection and analyze the
behavioral and consideration in choose a product’s consume. Past research has
shown a significant influence between marketing mix which is content of
promotional mix as one of the variable and brand equity which is content of
perceived quality toward the purchase intention (Shih, 2010). This study construct
as a quantitative research and working through questionnaire that going to spread
among women in active age. Here the researcher adopting a multiple regression to
analyze data collected. The result found in this research is there is significant
influence among variable which is promotional mix, perceived quality and
customer purchase intention. This study also answering the objective of
researcher’s research proving the hypothesis and appropriately applicable in the
business field.
Keywords: Promotional mix, advertising, Sales Promotion, Perceived quality,
Purchase Intention, FMCG, Fast Moving Costumer Goods, Mead Johnson.
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ACKNOWLEDGEMENT
Above all I want to give a much tribute to the Almighty God who has
given strength to my self in order to finish the thesis, which is used as final
project.
I dedicated this work to:
1. My lovely Parents, sister and brother that always support and nag me while in
deep of their heart have a sincere prayer for my success. In other words, they have
roles as my personal motivators.
2. For all President University lecturers especially for my advisor Mr. Suresh
Kumar, who has been inspiring and guiding me to accomplish this final project
sincerely. For the best Lecturer in Business Administration Mr. ABM Witono and
Mam Farida K.G thank to all support
3. For all my fellow friends, which are the students in Business Administration
major as well. They have been encouraging and supporting me since the
beginning of my university life. I feel so grateful, because without their supports
this paper won’t be finished on time. Especially to the supper best people in
Business Administration Rosyanti, Christin Widjaja, Rieka Wulandari F, Chika
Luvina, James Louis, Feriko, Pophel, Febriandi and all batch 2010 that I can’t
mention one by one.
4. Super Cheerfull friend from another Major that always cheers me up Thank you
for kind of support from you all Shintia Dewi, Claudia Putri, Regina M. Santoso,
Marisa Gunawan, Carolline Ricca, Derry Fransisca. And Mr Perfectionist Billy
Homario. The all partner in crime in this thesis Dewi, Hendy and Surya. For all
Presuniver batch 2011, 2012 and 2013 especially BA student.
5. To Marketing team Mead Johnson Indonesia Mr. Planius, Mr. Adi, Mr. Toni,
Ms. Eya, Ms Ellen, Ms Susan and Ms. Juin. Partner intern Neysa and Astrid. The
all member of gossip girl mbak Ayu, mbak Erva, mbak Imma and Bu Janti thank
a lot for your support.
This report is an outcome of the research in a case study of PT Mead Johnson
Nutrition Indonesia.
vi
TABLE OF CONTENTS
PANEL OF EXAMINERS APPROVAL SHEET…………………………..i
RECOMMENDATION LETTER…………………………………………..ii
DECLARATION OF ORIGINALITY……………………...………………iii
ABSTRACT……………………………………..…………………………iv
ACKNOWLEDGEMENT………………………………………………….v
TABLE OF CONTENTS…………………………………………………..vi
LIST OF TABLES………………………………………...……………….ix
LIST OF FIGURES…………………………………………………………x
CHAPTER I – INTRODUCTION………………………………………..….1
1.1 Research Background.………………………..………………………1
1.2 Problem Identification…………………………….....……………….3
1.3 Problem Statement………….………………………………………..4
1.4 Research objective…………………………………………………...5
1.5 Research Limitation………………………………………….………5
1.6 Definition of Terms…………………………………………….…….5
1.7 Significance of The Study……………………………………………6
CHAPTER II – LITERATURE REVIEW……………………………...…....7
2.1 Theoretical Review…………………………………………………...7
2.1.1 Promotional mix toward Perceived quality…………………...10
2.1.2 Promotional mix toward Purchase Intention…………………..11
2.1.3Perceived Quality toward Purchase Intention…………………12
2.2 Previous Research……………………………………………………13
2.3 Theoritical Framework ……………………………………………….15
2.4 Hypothesis……………………………………………………………16
CHAPTER III – RESEARCH METHODOLOGY……………………….…17
3.1 Research Design……………………………………………………....17
3.2 Sampling Design……………………………………………………...17
3.3 Research Instruments…………………………………………………18
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3.4 Reliability and Validity ………………………………………………..19
3.4.1 Validity Test…………………………………………………….19
3.4.2 Reliability Test…………………………………………………20
3.4.3Data Collection……....................................................................20
3.5 Data Collection Procedure……………………………………………..21
3.6 Testing The Hypothesis………………………………………………..21
3.6.1 Normality Test ………………………………………………...22
3.6.2 Multicolinearity Test……………………………………………23
3.6.3 Heterohedasticity Test…………………………………………..24
3.6.4 F Test……………………………………………………………24
3.6.5 T Test……………………………………………………………25
3.6.6 Adjusted R2……………………………………………………..25
CHAPTER IV – ANALYSIS OFDATA AND INTERPRETATION
RESULT……………………………………………………26
4.1 Company Profile……………………………………………………….26
4.1.1 Product of Mead Johnson Company……………………………27
4.1.2 Company Vision, Mission, Values and Core
Behaviours…………………………………………………... …29
4.2 Respondent Profile……………………………………………………..30
4.3 Descriptive Analysis…………………………………………………...33
4.4 Data Analysis…………………………………………………………..45
4.4.1 Factor Analysis………………………………………………….45
4.4.2 Reliability Test ………………………………………………...52
4.4.3 Multiple Regressions……………………………………………57
4.4.3.1 Normality Test………………………………………...57
4.4.3.2 F Test ………………………………………………...58
4.4.3.3 T Test………………………………………………….59
4.4.3.4 R2………………………………………………...……60
4.5 Interpretation of Results……………………………………………….60
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CHAPTER V – CONCLUSION AND RECOMMENDATION…………..…63
5.1 Conclusion…………………………………………………………….63
5.2 Recommendation……………………………………………………...63
5.2.1 Recommendation to Company………………………………….63
5.2.2 Recommendation to Next Study………………………………..64
Reference List………………………………………………………………...65
APPENDIX
ix
LIST OF TABLES
Table 4.1 KMO & Significance Test SPSS’18 ..................................................... 43
Table 4.2 Cumulative Table SPSS’18 ................................................................... 45
Table 4.3 Total Variance Explained SPSS’18 ...................................................... 46
Table 4.4 Component Matrix SPSS’18 ................................................................. 47
Table 4.5 KMO and Bartlett’s Test After Rotation ............................................. 48
Table 4.6 Communalities After Rotation .............................................................. 48
Table 4.7 Total Variance Explained...................................................................... 49
Table 4.8 Rotated Component Matrix ................................................................... 49
Table 4.9 Reliability Test of Sales Promotion ...................................................... 50
Table 4.10 Reliability Test of Direct Marketing ................................................... 51
Table 4.11 Reliability Test of Perceived Quality .................................................. 52
Table 4.12 Reliability of Purchase Intention......................................................... 53
Table 4.13 Multicolinearrity Problem ................................................................... 56
Table 4.14Anova Table ......................................................................................... 57
Table 4.15 Coefficients ......................................................................................... 58
Table 4.16 Coefficients After Rotation ................................................................. 58
Table 4.17 Model Summary .................................................................................. 59
Table 4.18 The Summary of The Result of The Research .................................... 59
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LIST OF FIGURES
Figure 1.1 Market Share of Super Premium Product .............................................. 4
Figure 2.1 Marketing Mix Concept ......................................................................... 7
Figure 2.2 Theoretical Framework ........................................................................ 15
Figure 4.1 Respondent Data .................................................................................. 30
Figure 4.2 Respondent Monthly Expenses............................................................ 31
Figure 4.3 Mom Consideration Before Purchase .................................................. 31
Figure 4.4Considered Product Consume .............................................................. 32
Figure 4.5a Advertising Respondent Review ....................................................... 33
Figure 4.5b Advertising Respondent Review ....................................................... 34
Figure 4.5c Advertising Respondent Review ....................................................... 34
Figure 4.6a Sales Promotion Respondent Review ................................................ 35
Figure 4.6b Sales Promotion Respondent Review ................................................ 35
Figure 4.6c Sales Promotion Respondent Review ................................................ 36
Figure 4.6d Sales Promotion Respondent Review ................................................ 36
Figure 4.6e Sales Promotion Respondent Review ................................................ 37
Figure 4.7a Direct Marketing Respondent Review ............................................... 38
Figure 4.7b Direct Marketing Respondent Review............................................... 38
Figure 4.7c Direct Marketing Respondent Review ............................................... 39
Figure 4.7d Direct Marketing Respondent Review............................................... 39
Figure 4.8a Percieved Quality Respondent Review .............................................. 40
Figure 4.8b Percieved Quality Respondent Review ............................................. 40
Figure 4.8c Percieved Quality Respondent Review .............................................. 41
Figure 4.8d Percieved Quality Respondent Review ............................................. 41
Figure 4.9a Purchase Intention Respondent Review............................................. 42
Figure 4.9b Purchase Intention Respondent Review ............................................ 43
Figure 4.9c Purchase Intention Respondent Review............................................. 43
Figure 4.9d Purchase Intention Respondent Review ............................................ 44
Figure 4.9e Purchase Intention Respondent Review............................................. 44
Figure 4.9f Purchase Intention Respondent Review ............................................. 45
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Figure 4.10Histogram ........................................................................................... 55
Figure 4.11 P-P Plot .............................................................................................. 56
Figure 4.12Scatterplot ........................................................................................... 57
1
Chapter 1 - Introduction
1.1 Research Background
Today Indonesia as the developing country already started to accept the
world global technology development one of it applied in industry. Cited from
the global business industry online magazine writer found that few industries in
Indonesia have benefitted from rising purchasing power as much as the fast
moving consumer goods (FMCG) sector. While the overall economy grew
between 6.2% and 6.5% per year since 2010, consumer spending increased by
double digits over the majority of the same period. Rising personal incomes are
lifting millions of Indonesians into the middle class every year, and FMCGs,
which include groceries, pharmaceuticals, toiletries and household care products,
are among the first items they spend more money on.
From the survey study the rate of growth of domestic consumption in
Indonesia expected to continue the increasing trend even up to 5-10 years, driven
by the behavior of a consumer society and likes new things that have become
trends. "The high growth rate of domestic consumption to make Indonesia's
economy remained stable in the midst of a world full of economic uncertainty,"
said Fabrice Carrasco, Managing Director of the Indonesia-Vietnam-Philippines
Kantar Worldpanel (KWP). So that is why now so many Companies abroad
started to entering Indonesian market
Based on historical market data consumer goods industry in Indonesia
grew increasingly positive. "With the increase of 9.6% in 2011 from the previous
year, the market value of the industry has reached Rp165, 95 trillion. In 2010, the
value of sales of consumer goods rose 11% over the previous year (Bahar,
Managing Director of Southeast Asia Spire Research & Consulting, 2013). Many
businesses are predicting that the trend of the consumer goods market in Indonesia
will increase in 2013, it caused an increase in the welfare of society that can
trigger a rise in the demand and consumption of products fast moving consumer
goods (FMCG).
2
From overall FMCG Industry in Indonesia, writer interested to explore in
specific field which is an infant and children formula industry. Based on survey
study demand of milk in Indonesia keep increasing this is leads by the healthy life
awareness trigger by the milk campaign and the bigger number of Indonesian
citizen (Ekawati, 2008). Remembering the modern mindset and new culture
already shape in everyone heads. So, many pro conslead a forum to talk about the
breast milk culture. In the older point of view it a must so you know to be a real
moms for your children but in the other hand it can be annoy, pain, they have a
difficulty to produce the breast milk and for they who are really care about the
body shape it harmful for their beauty looks. So that is why, the presence of the
infant formula should be very demanding.
Mead Johnson as the multinational company that already exists in more
than 100 years of course has their own uniqueness to stay competitive in term of
getting steady market positioning in each country. In this study, writer is going to
analyze the effectiveness of promotional mix that has been done by PT. Mead
Johnson Indonesia. Promotional Mix is an action or ways to introduce their
product to targeted market. Promotion it self is part of marketing mix to make
people aware toward their product and consider the product as the trusted product
that they are going to consume.
It is not enough for a business to have good product sold at attractive
prices. To generate sales and profits, the benefits of product have to be
communicated to customers. In marketing, this is commonly known as
“promotion”. Although promotion is not done for these factors but the other such
as to build brand loyalty, to reminds and reassures costumers, those totals
marketing communications programme is called the “promotional mix”. Based on
the assumption and reason above the writer is interested to know and learn more
about the influence of the promotional mix toward brand equity and the purchase
intention. So this research arises with the title “The Effect of Promotional Mix
toward Brand Equity and the Purchase Intention” Case study of Mead Johnson
Company.
3
So by raise up the case study of mead Johnson company, the researcher
going to make a conceptual framework of the promotional mix that apply by
Mead Johnson company and show the impact of that promotion application
toward brand equity and purchase intention of mead Johnson product. So by the
end of this research hopefully can be a good preview for the promotional
application in milk industry and give a positive contribution in the same field of
business.
1.2 Problem Identification
Mead Johnson Company already entering Indonesian market around 15
years ago, in term of keep the existence and getting a good positioning in the milk
formula market in Indonesia of course Mead Johnson make a tremendous
movement to increase the sales and market share one of the action that they take
such as offering promotion and held several event to introduce a product and also
the bridging some knowledge of product and nutrition workshop.
Based on market share of super Premium Milk in Indonesia in the last two
years, the market preposition of product mead Johnson it0self keep stabile no
significant increase or decrease. Even the company already gives so many
offering or promotion. So, in term of promotion that the company have done,
company spend a lot of marketing budget with no significant return on sales so do
they need to spend marketing budget for sales promotion or allocated it more to
the other aspect of promotion.
4
Figure 1.1 Market Share of Super Premium Product
Source: Internal Data Mead Johnson Company 2013
1.3 Problem Statement
To know more what kind of factor that influence people to make a higher
purchase intention of premium milk in Indonesia this research aim some question
to analyze the best promotion mix that can be apply by the company to get better
sales return by knowing the behavior of Indonesian moms and consideration
before purchase.
1. Do promotional Mix (Advertising, Sales Promotion and Direct Marketing) and
perceived quality influence mother’s purchase intention of super premium milk
formula from Mead Johnson.
2. Which independent variable (advertising, sales promotion, direct marketing and
perceived quality) influence the most on the purchase intention
Super Premium
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12.2
27.6
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10.0
15.0
20.0
25.0
30.0
35.0
AUG11
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OCT11
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DEC11
JAN12
FEB12
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MAY12
JUN12
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Abbott Fonterra Mead Johnson Nutricia Sanghiang Perkasa Wyeth
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1.4 Research Objective
1. To measure the relationship of promotional mix variable that adopted by Mead
Johnson (Advertising, Sales promotion, and Direct Marketing) and perceived
quality toward product purchase intention.
2. To determine which variable in promotional mix influence the most on the
purchase intention.
1.5 Research Limitation
The sample range of this questionnaire quite specific, so it only can be
applied for same industry, The secondary data that has been providedin this
research is only certain market share of super premium brand of milk in Indonesia
so for reference is only can be helpful if the next research is regarding the same
field of study, and the case of this study is only found in the Mead Johnson
Company so that is means that the study itself is not applicable for others
company. This research is measuring the super premium milk company for years
2011-2013. Hence, the result may be different if another research result uses
another time period.
1.6 Definition of Term
Promotional mix: Promotion is an action in marketing to ensure customers are
aware of the product.
Advertising: aprocess of communication, persuasive information about a product
and to educate customer regarding the type of the product.
Sales Promotion: any initiative or supportive action undertaken by an
organization to promote an increase in sales, usage or trial of a product or
services.
Direct Marketing:is an approach to advertising that seeks to elicit an action from
a consumer.
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Perceived Quality: is the customer’s opinion of a product or brand ability to
fulfill their expectation.
Purchase Intention: is a decision to buy after considering some aspect or it also
can be defined as individual’s intention to buy a product after a certain evaluation.
1.7 Significance of the Study
With this research, there are some significant studies that writer going to
achieved:
1. For the researcher, this research is being a study that fulfills the
requirement on obtained the bachelor degree in Business Administration
and learns to analyze the market business in Indonesia.
2. For the University students, this research can provide the student some
information with a complete and balanced education and to develop
better understanding about promotional mix, Brand Equity and purchase
intention when you are going to discuss the same variable or interested to
do deeper research.
3. For the Business application to the company, this research using the
primary data from questionnaire and Indonesian moms’ perception, so
hopefully this will give the several basic information that can be applied
for future plans of action in the business field to get greater and more
steady position in Indonesian market.
Furthermore, this study will serve as a theoretical model for future studies of the
same nature if ever the existing problem has penetrated in this case will exist in
the future. Future researchers will benefit from this study, and it will provide them
the facts needed to compare their study during their respective time and usability.
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Chapter 2 – Literature Review
2.1 Theoretical Review
Based on AMA (American Marketing Association) in marketing there is a
basic definition it is the process of communicating the value of a product or
service to customer, for the purpose of selling the product or services. This
communication aims at clarifying from both theoretical and managerial point of
view the concept of expertise in marketing can be call as marketing mix this is
they way they communicate to customer. Marketing mix divided into some
variable which are closely known as the 4’Ps:Place, Product, Price, and
Promotion.
Figure 2.1 Marketing Mix Concept
8
Souces: Marketing Management: A South Asian Perspective
According to Armstrong and Kotler, 2009 marketing communication
programme can be called as “Promotional Mix” and it a specific blend of
principal which are advertising, personal selling, sales promotion, direct
marketing, and public relation. These tools are employed to communicate to
consumers thus helps to form their belief and attitude toward the offering.
Attitude is a person’s relative consistent evaluations, feeling, and tendencies
toward an object or idea and attitude will influence customer buying behaviour
(Armstrong &Kotler, 2009).
Promotional mix is specific combine of advertising, public relations,
personal selling, sales promotion and direct marketing (Armstrong and
Kotler,2009) these tools are apply in every company as the way to communicate
with the customer. The aim of an organization’s promotional strategy is to bring
existing to the product starting from the awareness until the purchase decision.
Promotional mix divided into several sector there is advertising which is
an activities that targeted several objectives such as to introduce the product to the
targeted market, to expand the market to new buyers, to announce the
modification, price change and introduce new packaging, and the last is to educate
customer regarding the type of the product is needs a careful
explanation.According to Brassington&Pettitt (2000) advertising is any paid form
of non-personal communication directed toward targeted audiences and
transmitted through various mass of media. Adding by Mortimer (2001) stated
that an important part of advertising is to make the service tangible in the mind of
the customer in order to reduce perceived risk and provide a clear idea of what the
service comprises.
There also has a sales promotion as supportive action to support a sales,
good application of the sales promotion produces an immediate consumer
response, attract attention and create product awareness. This can be stimulated by
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GWP, free sample, Twin-Pack bargain, temporary price reduction, coupon
discount from retailer. Well said the primary objective with sales promotion
within financial services are to attract new customer: to increase the level of
buying intention toward a product sell, to increase the market share in selected
market segment.
Not to forget direct marketing there will be a pro and contra in this part, is
that will be annoyed or pleased the customer if company uses the direct
marketing. According to Amstrong&Kotler (2009) “most of customer are annoy
or feel offended toward direct marketing such as TV commercial that are too long,
loud and insistent, unwanted junk email in the mailboxes and computer screens
flash out unwanted banner or pop up advertising.
However Al-alak&alnawas (2010) has different idea that said “consumer
have the intention to buy product if they are convinced that SMS advertising
message were useful and entertaining. Added by Lee (2002) the fast advances in
technology over the past 30 years have reshaped how consumer today interact
through technology, they prefer received a services from phone, mail, or computer
transactions.
All variable in promotional mix strategy manages and leads the
achievement of the marketing objective which is hitting the target and penetrating
the market. The choice of a proper mix of promotion elements is a difficult task to
the marketer, so it takes a long time to set up the strategy and maximize the mix.
So by understanding the market needs it becoming the first step to optimize the
promotional mix (Cole, 2009), then next is determine the promotional objective
which is leads the promotional activities should have a target to be meant which is
referred to the perceived quality and increasing the purchase intention.
Take a closer look at the brand, there is a perceived quality is the
customer’s opinion of a product or brand ability to fulfill their expectation
(business dictionary online). This perceived quality can be built though public
image, customer experience, and people influence or recommendation. So a good
10
perceived quality can lead people becoming a loyal customer and also started to
aware of branding while choose the product that they are going to consume.
Brand represents the ability of producing synergy effect of complete
efforts of the marketing that inserts and stretch the existence of an image in the
minds of consumer, and add a helping hand to the firm’s success s with the help
of stronger cash flows and higher values in terms of the shareholders (Wong and
Merrilees, cited in Utami, 2013). In measuring the purchase intention it divide
into some variable such as willingness to purchase, considering purchase and
recommendation purchase.
Purchase Intention kind ofdecision in which studied how often a customer
purchases, it constructs like considering somethingpurchasing a brand and
anticipating purchase a brandaids to scope the intentions of purchasing (Porter
cited in shah, 2011). Adding by Binninger (2008) suggested that earlier in
1990scustomers loyalty is marked as a main concept against inassociation
withmany others that consists ofcommitment, satisfaction, identification, trust and
therelationship with or attitude leading to brand. Trust of thecustomer and
satisfaction with a retailer mediates theimpact of trust in brand and satisfaction on
customer.
2.1.1 Promotional mixtoward Perceived quality
A successful of the marketing mix contribute higher perceived quality
dacin and Smith (cited in Rajh,2005)it show a positive relation. In addition,
Perceived quality supporting the brand equity increases which isbrings
(1)Willingness of consumers to pay premiumprices
(2) Possibility of brand licensing
(3) Efficiency of marketingcommunication
(4) Willingness of stores to collaborate and provide support
(5)Elasticity of consumers toprice reductions
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(6) Inelasticity of consumers toprices increases and reduces the company
vulnerability to marketing activities ofthe competition and their vulnerability to
crises.
Those attribute is as a result of its visibility and pervasiveness in all the
other marketing communication elements (Okyere, Agypong&Nyarku, 2011).
Advertising as a major social event results in key changes in values, beliefs,
behaviour and buying patterns of the people as it influences the lifestyles of
people (Polly & Mittal cited in Stephen, 2012). Petrovici and Marinov (2007) said
that core reasons for the change in the lifestyle and buying patterns of a person are
the economic transformation and certain market opportunities.
Supported by Cook (Cited in Kumar,2011) explaining that although
advertising must be perceived as original and unique in order to gain new clients,
it rarely results in a substantial positive or negative gain for brand equity due to
long-term product and company lifecycles. Which means the promotional mix
that run by a company give a rule to lead a manufacturer brand customers directly
to determine satisfaction and perceptions regarding a brand and its perceived
quality, Keller (cited in Utami, 2013) defines customer-based perceived quality as
the differential effect of brand knowledge on consumer response to the marketing
of a brand.
2.1.2 Promotional mix toward Purchase Intention
The trend of consumer purchase intention is influenced by the attitudes
held by consumer concerned. Strong attitude may be held with strong conviction
to determine the product that will be bought by consumers Engel (cited in Shih,
2010), while others may exist with minimum level of trust. Purchase intention is
the implied promise to one’s self to buy the product again whenever one makes
next trip to the market (Fandos&Flavian, 2006; Halim&Hameed, 2005). It has a
substantial importance because the companies want to increase the sale of specific
product for the purpose to maximize their profit.
12
Purchase intention descript the impression of customer retention toward
action that already take such as the promotion that have done by the company
through media, website, or in store promotion strategy. Product knowledge is that
descriptive features which company wants to acknowledge to the general public to
cater their purchase intention. Simply says if a consumer goes to the market they
will prefer to get those products about which they has already know, there is very
rare chance for them to look for other products. So companies trying to provide
necessary product knowledge by using various modes of communications through
promotional mix to the buyers to get their attentions regarding purchase. Trust is
another major factor which a company can attain by providing knowledge to
patrons about their operations, procedures and rules use to make the product. So it
is cleared that if people have more product knowledge then they would be more
persuaded towards purchase intention.
2.1.3 Perceived Quality toward Purchase Intention
Purchase Intention defines as the tendency of consumer to buy the brand
or take the brand or take action relating to the purchase of which measure by how
likely consumers make purchases(Assael,2011). Attitude is very influential on
consumer perception of the quality of the product, the perception of high quality
intend to encourage consumer to buy the product in question (Kumar, 2009).
Perception of high quality can cause consumers to recognize the difference and
advantages of certain brands.Sebastianelli and Tamimi (2002) explained product
quality as something which resembles with the innate excellence, which mean, it
comes from the production level and it should be recognizable. They emphasized
that quality should consist of measurable features instead of preferences
Cited in Ling-Ling (2011) a statement from Porter also elaborated
customers’ intention topurchase focused brand is not merely by the same
brandattitude, but also by attitudes leading to other brandsin choice of set
considered. Schoen bachler (2004)explained a type of loyal customer, whose
purchase. Currently, there are a large number of different definitions of brand
equity, whichmay lead to conceptual misunderstandings when researching this
13
phenomenon. An attempt to classify the different approaches to the definition of
brand equitycould be useful in clarifying different approaches to andrelationships
involved in the complex concept of brand equity that lead people to check closer
about perceived quality of a product bought.
Feldwick (Cited in Utami,2013) hasidentified three different approaches to brand
equity:
(1) brand value (the totalvalue of the brand as a company’s intangible asset –
financial approach)
(2) brandstrength (the strength of consumer commitment to a particular brand –
behavioristic approach)
(3) brand description (associations and beliefsconsumers have about particular
brands – cognitive approach).
Feldwick argues that brand equity is a vague concept especially due to its
lack of measurability and application in the business environment. He concludes
that brand equity is too imprecise to be used as the holistic measure of everything
such a perceived quality for a company should be doing to improve its future
performance as the important in the design and development of a companyand its
product or service offerings. So the context product and services in perceived
quality dimensions applicable to attempt a good relation in purchase Intention.
2.2 Previous Research
To support this research, writer already read some research that discuss resemble
topic:
1. An International Journal titled Comparative Analysis of Marketing
Strategies for Manufacturers’ and Retailers’ Brands by Tsui-Yii Shih
2010. This research discuss the all aspect of marketing strategy which is
going to be dependent variable, to compare the manufacturers’ and
retailers’ brand the researcher rose another dependent variable namely
14
brand equity and purchase intention to be the independent variable. This
research findings are administered total 93% valid questionnaire, structural
equation models are evaluated by chi-square significance test, all factor
loadings of variable exceed 0,6, while the cronbach’s alpha values for the
item to total correlation exceed 0,7. In this study results shows the
marketing strategies and brand equity all have significant positive effect
on purchase intention.
2. A paper from University Malaysia Sarawak Promotion Mix: Level of
Awareness and Purchase Likelihood by Rabaah Tudin and Anne Wong
Ling-Ling 2012. This Research focusing on the explanation of distribution
and contribution of each mix in promotion. This research was design with
a non probability sampling to 400 partisipant with the acceptable
hypothesis which means there is a significant positive relationship
between consumers’ level of awareness on product and sales promotion
and public relation.
3 An Evaluation of Promotional Element Influencing Sales of an
Organization by Arvinlucy Akinyi Onditi from Maseno University of
Kanya 2012. In this research the writer targeted woman group as the
source of primary data collected and also using a simple random sampling
technique of women group in known population. This reseach have a
scope of study that mainly focused on the use of promotional factor that
going to be use in writer research. As the result promotion is give much
contribution on sales of an organization which is driven by the bigger
purchase intention among women group in that area of study.
4. Jurnal from Ayu. Karbala and Harimukti which learns and contributes in
discussing the factor thataffect consumer to buy a product by looking
several factors that caninfluence them such as product, price, place, and
promotion. In Analyzing the Factors That AffectingConsumer’s
Purchase Intention in Toimoi Store,Indonesiausing a factor analysis
though data collection of 122 questionnaire while the R2shows
15
thatproduct, price, place, and promotion collectively has 13.1%effect in
consumer’s purchase intention.
5. The last journal is taken from a lecturer PhD Raj Kumar Gautam and
Professor PhD Raghbir Singh 2011 with the title Marketing Mix Strategy
of Small Manufacturers of India. This research use the likert scale to
express the level of agreement/disagreement. The significant level is
spesified with Kruskal-wallis test that assumed p-value=0.05 and if the
result is less than 0.05 are considered as significant. This research finding
is the small manufacturer in this globalization era depends a lot on the
marketing mix to remain competitive and survive in the market.
2.3 Theoretical Framework
Based on the writer’s research, PT. Mead Johnson Indonesia creates a conceptual
framework to verify the performance of marketing strategy (see figure 2.1). This
company is focusing in the effectiveness of promotional mix programme upon
understanding their customer needs which enable the company to serve customer
better than competitor and trust Mead Johnson product. So, these researches rise
up the conceptual framework that implicated the promotional mix, brand equity
and purchase intention.
Figure 2.2 Conceptual Framework
16
Sources : Shih,2010
2.4 Hypothesis
This study was carried some hypotheses:
H.1 There is a significant impact between promotional mix and perceived quality
on Purchase Intention of milk product.
H.2 There is the most significant impact in promotional mix element on purchase
intention of milk product.
17
Chapter 3 – Methodology
3.1 Research Design
This Research adopted the case study from Mead Johnson Company. It
was because the researcher has learned and takes role in the marketing department
in this company,by knowing some background and result compared the researcher
have much interest to know is promotional mix that already run by this company
give a big impact on brand equity and purchase intention toward product of Mead
Johnson Company. In this Research, Researcher going to collect primary data by
spread an online questionnaire to targeted people so, the data collected will be
valid and lack of mistake. This research fully design as a Quantitative dimensions
to set the most suitable method to determine whether generalization of a theory or
a hypothesis is accurate (Creswell, 2009)
3.2 Sampling Design
The target of the data collection is active women in Indonesia that
consume a milk product in their pregnancy and maternity period. That include all
women in good enough economy and education background to make sure they
consume milk to support her and hers’ babies growth. According toMalhotra
2010, in the Marketing research the unknown population targeted required a
minimum sample size of 200 respondents that should be collected randomly. In
the other hand, Comrey and Lee (cited in MacCullum,1999), they offered a rough
rating scale for adequate sample sizes in factor analysis 100 = poor, 200 = fair,
300 = good, 500 = very good and 1000 or more = excellent. So the researcher
choose to use 250 number of questionaire to prove the hypotheses in this research.
Using a random sampling may grossly misrepresent the target population but in
the questionnaire that rises in this research has set the characteristic of the target
to minimize an error.
18
3.3 Research Instruments
The equipment for data collection was a questionnaire and descriptive statistics
and hierarchical stepwise regression analysis to prove the hypothesis.The
questionnaire structured using aLikert scale (1-5) which measuring the strongly
disagree, disagree, moderate, agree and strongly agree. It intended to obtain the
primary data from the respondents as a subject of research on the variable
measured. These questionnaires measure the effect of promotional mix toward
brand equity and purchase intention of milk formula product in Indonesia.
Variable Indicator Author
Advertising
I know much about the milk product product
from TVC, sosial media, billboard and magazine
Tsui-yii Shih
I know there is the promotion from Milk product
because the products is available in the big retail
shop
After seeing the biggest advertising offered I'll
try find out the product
Sales
Promotion
I will buy more product because of the
promotion
Park Jin woo
when I see the promotion label I will spend over
my budgeting limit
I feel that I have more benefit if I can get
discount
I pay more attention to the biggest number of
sale not for the current brand I consume.
I buy a product with a special offering in retail
store after getting the information
Direct
Marketing
I always found the interesting offered from mail,
sms or website
Internal source
Mead Johnson
the contain of sms that I've got is always clear
*see example*
I prefer get an sms or mail about the current
promotion rather than asking about my babies
development
I appriciate if the company send me an sms or
mail that contain reminder for baby needs
I always getting a fast response and enjoy with
the text sms that I send so it lead me to buy a
product
19
Variable
Indicator
Author
Percieved Quality
I consider myself to be loyal to manufacturer
brand because it have a famous and strong
personality
Tsui-yii Shih
Manufacturer brand ofer very realible product
the likelihood that manufacturer brand will be
satisfactory is very high
bigger promotion means bigger budgeting,
bigger company and the greatest quality they
offered
Purchase Intention
I am willing to pay money for the product that
recommended by trusted people for me
Tsui-yii Shih I Consider to buy a product if there will be a
reward point after certain amount.
The product that I am going to use continiously
should be easy to get
Free sample is the kick off before I choose to
purchase Internal source
Mead Johnson The Ingredients of the product can complete the
nutrition needs
I prevere to choose a product with a good
packaging Kumar Rajh
3.4 Reliability and Validity
3.4.1 Validity Test
Based on Malhotra 2010 there are several types of validity:
1. Content Validity (consist of a subjective but systematic evaluation of the
representativeness of the content of a scale for the measuring task on hand.
2. Criterion Validity (the type of validity that define whether the measurement
scale perform as expected in relation to other variables selected as meaningful
criteria.
3. Construct Validity (shown the theoretical question by researcher and estimating
the deduction made by theory underlying)
20
Validity test is needed to determine whether the question in the
questionnaire representative enough. Test validity is done by using factor analysis
on each variable. Factor analysis is a multivariate statistical procedure that used to
examine the entire variable for interdependence (Malhotra, 2010). There are
several steps in tested the factor analysis:
1. KMO &Barlett Test
KMO ( Kaiser- Meyer- Olkin) measure adequacy test and Barlett test of
sphericity, to determine the appropriateness of the factor analysisif the value index
around 0.5 – 1.0, then factor analysis is appropriate).
2. Communalities
This is a table that show amount of variance a variable for communalities that
should be above 0.5 and all variable share with the other variable being
considered (Malhotra, 2010).
3. Total Variance
There is cumulative column which representing a percentage of variable explained
through this study with the considerate number greater than 60
4. Rotated component matrix
Used to deliver a table that consist of factor loading of each variable on the
component and delivered a relationshipof variable and component
3.4.2 Reliability Test
The reliability is a value that indicate a measure of consistency every
question in the same variable. The reliability of used measurement scales was
tested using Cronbach’s alphacoefficient. Cronbach’s alpha coefficients lead us to
the conclusion that the appliedmeasurement scales exhibit satisfactory levels of
reliability, this study uses a composite reliability with a cut-off value at least 0.7,
ranging from acceptableto excellent.Also, theimpact of specific items on
21
Cronbach’s alpha coefficient of the respectivemeasurement scale was analysed in
order to eliminate from further analysis thoseitems that result in the reduction of
the reliability of respective measurementscales. Based on such analyses, the
following items were eliminated from furtheranalysis. The reliability testing is an
index to illustrate how trusted and reliable the questionnaires are.
The Cronbach’s Alpha formula:
( )
Where:
= instrument reliability’s coefficient
r = mean correlation between variables
N= number of questions
3.5 Data Collection Procedure
This study is required both primary and secondary. Primary data was
acquired through questionnaire administered to the women group in active age,
while secondary data was obtained from the Mead Johnson Company that provide
data of the market share of the super premium milk formula. By getting the
primary data researcher can go deeper to the purchase considering for the milk
formula and by the secondary data which is the market share of super premium
milk in Indonesia researcher can combine and compare the brand perception
toward every national brand.
3.6 Testing the Hypothesis
This research going to implement multiple regressions to define the
research objective, here writer going to discuss the relationship of two
independent variables namely promotional mix and the perceived quality toward
22
the dependent variable namely purchase Intention. This research that use a
multiple regression should fulfill the term of normally distributed (Ghozali,2009)
that will be shown in a histogram with bell shape curve. Those data collected will
be processed through SPSS 18 to find the most influential factors.Multiple
correlation R measure how dependent variable is related to all the independent
variable at once.
Where:
Y: dependent variable (Purchase Intention)
B1: coefficient of variable 1 (advertising)
B2: coefficient of variable 2 (sales Promotion)
B3: coefficient of variable 3 (Direct Marketing)
B4: coefficient of variable 4 (Perceived Quality)
3.6.1 Normality Test
Normality test can be detected through scatter plot performance on the
diagonal line in the graph, by analyze the histogram Ghozali (2006). In regression
normality is a basic assumption of normal distribution there is can be analyze
through histogram or P-P plot with the dot spread around the diagonal line.
Normality can be accepted if the ratio are -2 to +2 (Pamela,2006). The used of
normality is for checking whether the data is normally distributed or not.
1. Histogram
The normally distributed data in histogram will show a bell-shaped pattern
and often the histogram will include a line that shows a pattern of the
histogram and the normality is marked with the data distributed inside the
line.
23
2. P-P Plot
The expected normal value is the position a case with rank hold in normal
distribution. Generally, the plot will show the actual values lining up along
the diagonal that goes from lower left to upper right it called as positive
correlation.
3. Scatter Plot
The next is check normality through scatter plot to show how much one
variable is affected by another. The relationship between two variable is
called correlation, the residual of the plot is normally distributed if the
major of the plot is spread above and below zero point at Y axle.
3.6.2 Multicolinearity Test
Multicolinearity can be check through VIF (Variance Inflation Factor) that
provide the index of how much variance of estimated regression
coefficient increase because of collinearity.
Multicolinearity is a problem those arises when intercorrelation among
variable are very high. According to Malhotra 2010 there is 4 type of
problem arise as a result of multicolinearity problem:
1. The partial regression coefficients may not be estimated precisely. The
standard errors are likely to be high.
2. The magnitudes as well as the sign of the partial regression coefficient
may change from sample to sample
3. It becomes difficult to assess the relative importance of the independent
variable in explaining the variation in dependent variable
4. Predictor variable may be incorrectly included or removed in step wise
regression
24
3.6.3 Heterocedasticity Test
Heterocedasticity is an errors that affecting invalidate statistical
tests of significance that assume that themodelling errors are uncorrelated
and normally distributed and that their variances do not vary with the
effects being modelled because it did not have a constant variance of one
observation to other observations (Kuncoro,2003). If heterocedasticity
found the research the result maybe not accurate and misleading the
study.Heteroscedastic data will still provide an unbiased estimate for the
relationship between the predictor variable and the outcome, but standard
errors and therefore inferences obtained from data analysis are suspect.
Biased standard errors lead to biased inference, so results of hypothesis
tests are possibly wrong
3.6.4 F Test
The significant level of F value was used to determine the
reliability of the model using F test. F test usually using ANOVA table
(analysis of variance) and conducted the requirement of significant level
below 0.05. F Test is used to test the null hypothesis that the coefficient of
multiple determinations in the population. The significant of the partial
regression coefficient may be tested using an incremental F statistic with
the formula below:
⁄
[( ) ( )⁄ ]
Where:
F= statistic test for F distribution
R2= coefficient of determination
k = number of independent variable in the model
n = number of sample
25
F value will be shown through table with the significant level
below 0.05 it show the simultaneously relation between independent
variable and dependent variable in this research
3.6.5 T Test
T test is a univariate hypothesis test using the t distribution which
is used when the standard deviation is unknown and the sample size is
small (Malhotra, 2010). Value was used to determine the predictor
power or coefficient value. T test is use to determine the t value that use to
determine significant of value as explained by (Field, 2005).
3.6.6 Ajusted R2
R2 was used to interpret the multiple correlation coefficient level.
According to Malhotra 2010 R2 is adjusted for the number of independent
variable and the sample size to account for diminishing returns. After the
first few variable, the additional independent variable do not make much
contribution.
R2 will be larger when the correlations between the independent
variables are low. The coefficient of multiple determinations, R2, cannot
be less than the highest bivariate r2. For this reason, R
2 adjusted for the
number of independent variable and the sample size by using the
following formula:
( )
Where:
R2 = Coefficient of determination
k = number of independent variable in this model
n = number of sample
26
Chapter 4
Analysis of Data and Interpretation Result
4.1 Company Profile
Few industries in Indonesia have benefitted from rising purchasing power as
much as the fast moving consumer goods (FMCG) sector. While the overall
economy grew between 6.2% and 6.5% per year since 2010, consumer spending
increased by double digits over the majority of the same period. Rising personal
incomes are lifting millions of Indonesians into the middle class every year, and
FMCGs, which include groceries, pharmaceuticals, toiletries and household care
products, are among the first items they spend more money on. Growing sales in
Southeast Asia’s largest economy have helped global companies expand their
businesses.
Urbanization also tends to promote new lifestyles, creating demand for products
consumers may previously have considered unnecessary. This is a trend that is
buoying sales of personal care products from women’s nail polish to men’s
skincare across Indonesia’s diverse consumer market. The beauty and cosmetics
market in Indonesia is growing fast with a 14% growth in cosmetics sales in 2012
totaling $1.01 billion USD (Euromonitor). While women’s beauty products make
up the lion’s share of growing sales, demand for men’s products is undergoing
significant growth mirroring a phenomenon being witnessed throughout Asia.
The fact that urban families tend to have fewer children leaves more disposable
income to be spent on non-essentials such as beauty products or higher quality
foodstuffs. At the same time, parents with fewer children normally spend more
per child, which promises bright prospects for premium-brand baby and childcare
products in a country with Asia’s second highest birth rate. One FMCG category
set to benefit from changing Indonesian lifestyles is infant formula milk which has
seen sales increase by 9% per annum (Reuters). As more women in city
environments are formally employed, they are finding it harder to maintain a
27
breast-feeding regime and are therefore more ready to opt for commercial
alternatives. Multinational as well as local FMCG producers are investing heavily
in new dairy plants to meet swelling demand such as Mead Johnson
Mead Johnson was built on a foundation of science-based nutrition. Mead
Johnson Nutrition was the one of the first companies in United Stated who
focuses on scientific research for infants and children Nutrition. Mead Johnson
Nutrition was establish on 1900 in Jersey City, New Jersey by Edward Mead
Johnson, Sr. for more than 100 years, Mead Johnson has introduced a wide range
of innovative infant feeding product, pharmaceutical, and enteral and parenteral
nutrition products. In 1910, Mead Johnson introduced Dextrilactic-Powder, the
first baby feeding product. This new product is a combination of digestive aids
and dehydrated milk. In 1915, Mead Johnson settled in Evansville, Indiana, where
still it maintains its largest presence, including a Pediatric Nutrition Institute
research facility and a manufacturing plant.
Mead Johnson International was formed as a separate division to provide a
framework for conducting business overseas. Today Mead Johnson has over 70
products in more than 50 markets worldwide. Mead Johnson’s first Mexican
manufacturing facility was built in Mexico City. That same year, the company
was recognized by the medical Pharmaceutical Foundation of the Republic of
Mexico and made greatest contribution to the nation’s public health.
4.1.1 Product of Mead Johnson Company
Below is a product offered from PT Mead Johnson Indonesia:
Enfa A+
1. Enfa Mama A+
Is a milk formula Enriches with Colin, Folat acid, Antioxidant
Vitamin C to support the nutrition needs for pregnant and
breastfeeding women.
28
2. Formula For Infant (0-11 months)
For infant formula because we are supporting the ASI Exclusive so
we did not put a aggressive promotion like others product. So in
the website moms required to register before they ask for Infant
formula and direct them to the Health care professional.
3. Enfa Grow A+
It’s help supporting the brain development by helping stimulate of
Concentration, memory and Problem solving for children in their
first three years which is known as the golden period of brain
development.
4 Enfa Kid A+
Follow on milk after Enfa Grow and its goods for completing the
nutrition and help the children to have great support for their
growth such as cognitive, reasoning, logic and also Antibody.
Sustagen
1 Sustagen Junior 1+
This stage is address to the 1 up to 3 Years old children. Why they
need milk formula? In this active age many of them becoming
fussy eater so with delicious taste of Honey and Vanilla will
reduce Moms worries.
2. Sustagen Kid 3 +
This stage is address to the 3 up to 6 Years old children. Moms will
started to found their babies as a picky eater. So this milk formula
will help moms to complete their baby nutrition.
3. Sustagen School 6+
This stage is address to the 6 + children where they already started
their activities at school and becoming active is a must so they
29
need more energy to support their activities. Sustagen School 6 +
help them to get enough nutrition.
4. 1. 2Company Vision, Mission, Values and Core Behaviours
Vision of PT Mead Johnson Indonesia
To be the world’s leading Nutrition Company for babies and children.
Mission of PT Mead Johnson Indonesia
To nourish the world’s children for the best start in life.
Values of PT Mead Johnson Indonesia
Passionate pursuit of continuous improvement in all we do
Uncompromising commitment and product quality
Unwavering integrity in every relationship we have and action we take
An environment of openness, respect, and high performance
Core Behaviors of PT Mead Johnson Indonesia
Drive performance with focus
Communicate with Clarity
Innovate and Improve
Develop and Engage
(Internal Source PT Mead Johnson Nutrition Indonesia)
30
4.2 Respondent Profile
Based on the research instrument the data result analysis should go through the
entire test started from the reliability test until the Hypothesis test. The entire step
below is the following step and explanation of the data interpretation:
In this research is specified as female in active age, with a married in marital
status total of 250 respondents.
1. Respondent Data
Figure 4.1 Respondent Data
The background of those 250 respondents who have been deal with this
questionnaire presented in table 4.1 74% (185 respondents) of them already have
a kid, 24 % (60 respondents) of them pregnant, but 2% (5 respondents) of them
married already but haven’t have a kid or pregnant yet.
31
2.RespodentMonthly Expenses
Figure 4.2 Expenses per month
From economic background most of them already in category of middle upper
economic level. 49% (123 respondents) of them have an expense more than 5
million a month
3. Mom Consideration before Purchase
Figure 4.3 Scale considerations before purchase
32
Most of mom consider about perceived quality, nutrition and
recommendation. Because those three factors already contribute 62% share of
voice in this questionnaire 155 Respondents out of 250 respondents. This kind of
consideration stimulate by their background of economic. And from respondent
data questionnaire almost 50 % of them can be categories in a great range
economic background so most of them already settle to give the best product
which they can buy not really care about promotion and GWP.
4. Considered product consume
Figure 4.4 branding scale
33
Regarding product consume in their breastfeeding period most of them consume
Prenagen, Anmum and Enfa Mama. For an infant formula Enfagrow A+ from
Mead Johnson trusted as the first switch formula for their children around 38%
(95 Respondents) choose Mead Johnson product. From this primary data it show
that they already close enough with this brand and stated realize that the perceived
quality of the product is worth to get. It strengthen by the behaviour before
purchase of Indonesian mom that considering a quality, nutrition, and
recommendation over the promotion, so it can be said that the level of education,
economic, and lifestyle affecting their mind set.
4.3 Descriptive Analysis
Figure 4.5a AdvertisingRespondent Reviews
Q1: I know much about the milk product product from TVC, sosial media,
billboard and magazine
Degree of the agreement in this likert scale is 80% of total 250
Respondents.
1 3%
2 3%
3 15%
4 43%
5 37%
34
Figure 4.5b Advertising Respondent Reviews
Q2: I know there is the promotion from Milk product because the products
is available in the big retail shop
Degree of the agreement in this likert scale is 77% of total 250
Respondents.
Figure 4.5c Advertising Respondent Reviews
Q3: After seeing the biggest advertising offered I'll try find out the product
Degree of the agreement in this likert scale is 69% of total 250
Respondents.
1 2%
2 3%
3 19%
4 44%
5 33%
1 3%
2 12%
3 17%
4 39%
5 30%
35
Based on respondent data above researcher interpret the data as the
positive response from the respondent about the advertising most of them stated
that they are found an interest in advertising and though advertising people know
about the product and consider buying a product. By second question in
questionnaire researcher found an interested fact that retailer also take a big role in
advertise the product, the product that available in a big retailer like Carrefour,
Hypermart, and Giant is categories as easy to get product and it leads a higher
purchase intention toward a product.
Figure 4.6a Sales Promotion Respondent review
Q1: I will buy more product because of the promotion
Degree of the agreement in this likert scale is 62% of total 250
Respondents.
Figure 4.6b Sales Promotion Respondent review
1 5%
2 11%
3 23%
4 40%
5 22%
1 4%
2 15%
3 27%
4 35%
5 20%
36
Q2: When I see the promotion label I will spend over my budgeting limit
Degree of the agreement in this likert scale is 55% of total 250
Respondents.
Figure 4.6c Sales Promotion Respondent review
Q3: I feel that I have more benefit if I can get discount
Degree of the agreement in this likert scale is 68% of total 250
Respondents.
Figure 4.6d Sales Promotion Respondent review
Q4: I pay more attention to the biggest number of sale not for the current
brand I consume.
Degree of the agreement in this likert scale is 45% of total 250
Respondents.
1 1%
2 3%
3 24%
4 38%
5 35%
1 16%
2 20%
3 20%
4 30%
5 15%
37
Figure 4.6e Sales Promotion Respondent review
Q5:I buy a product with a special offering in retail store after getting the
information
Degree of the agreement in this likert scale is 66% of total 250
Respondents.
Based on figure 4.6diagram show that sales promotion hitting the target
with the discount, by having a great deal of discount customer feel they get more
advantages it stimulate them to spend more money, so in order to giving a sales
promotion there should be a good planning by marketer in term of giving a clear
promotion so targeted customer aware there is a promotion along the several
period of time. But we can see in the question number 4 the switching product
behaviour of the customer is categories as high so it could be quite hard to
maintain a loyal customer and there is also a change to make them stated to
choose Mead Johnson product.
1 5%
2 11%
3 29%
4 43%
5 13%
38
Figure 4.7a Direct Marketing Respondent Review
Q1:I always found the interesting offered from mail, sms or
website
Degree of the agreement in this likert scale is 49% of total 250
Respondents.
Figure 4.7b Direct Marketing Respondent Review
Q2:the contain of sms that I've got is always clear
Degree of the agreement in this likert scale is 41% of total 250
Respondents.
1 10%
2 17%
3 25%
4 27%
5 22%
1 14%
2 19%
3 26%
4 30%
5 11%
39
Figure 4.7c Direct Marketing Respondent Review
Q3:I prefer get an sms or mail about the current promotion rather
than asking about my babies development
Degree of the agreement in this likert scale is 59% of total 250
Respondents.
Figure 4.7d Direct Marketing Respondent Review
Q4: I always getting a fast response and enjoy with the text sms
that I send so it lead me to buy a product
Degree of the agreement in this likert scale is 53% of total 250
Respondents.
1 14%
2 19%
3 26%
4 30%
5 11%
1 2%
2 10%
3 30%
4 38%
5 20%
40
In direct marketing (figure 4.7)likert scale data show most of the
respondent in moderate up to agree in term of email offered by a company
is interesting for them but in term of information they get, is clear enough
to be understood and the appreciate if the company send a text or mail
regarding reminder for immunization and information about babies
development it can lead them to be loyal.
Figure 4.8aPercieved Quality Respondent Review
Q1:I consider myself to be loyal to manufacturer brand because it have a
famous and strong personality
Degree of the agreement in this likert scale is 79% of total 250
Respondents.
Figure 4.8a Percieved Quality Respondent Review
Q2: Manufacturer brand offer very realible product
1 0%
2 3%
3 19%
4 39%
5 40%
1 2%
2 1%
3 20%
4 49%
5 29%
41
Degree of the agreement in this likert scale is 78% of total 250
Respondents.
Figure 4.8c Percieved Quality Respondent Review
Q3: the likelihood that manufacturer brand will be satisfactory is very high
Degree of the agreement in this likert scale is 80% of total 250
Respondents.
Figure 4.8dPercieved Quality Respondent Review
Q4: bigger promotion means bigger budgeting, bigger company and the
greatest quality they offered
Degree of the agreement in this likert scale is 91% of total 250
Respondents.
1 0%
2 2%
3 18%
4 38%
5 42%
1 0%
2 0%
3 10%
4 43%
5 48%
42
Researcher found that percieved quality is the most infuence variable
in buying decision, because people believed that manufacturer brand offer
a very realible product. It hard to make them started a switching brand
behaviour if they already set which product they going to consume. In
term of quality here Mead Johnson product in a very good
recommendation in term of quality based on survey study in this
questionaire it found Enfa is the most wanted to buy infant formula and
enfa mama is in the second range.
Figure 4.9a Purchase Intention Respondent Review
Q1:I am willing to pay money for the product that recommended by
trusted people for me
Degree of the agreement in this likert scale is 56% of total 250
Respondents.
1 8%
2 9%
3 28%
4 27%
5 29%
43
Figure 4.9b Purchase Intention Respondent Review
Q2: I Consider to buy a product if there will be a reward point after certain
amount.
Degree of the agreement in this likert scale is 58% of total 250
Respondents
Figure 4.9c Purchase Intention Respondent Review
Q3: Free sample is the kick off before I choose to purchase
Degree of the agreement in this likert scale is 52% of total 250
Respondents.
1 5%
2 10%
3 26%
4 46%
5 12%
1 3%
2 21%
3 23%
4 34%
5 18%
44
Figure 4.9d Purchase Intention Respondent Review
Q4: The product that I am going to use continiously should be easy to get
Degree of the agreement in this likert scale is 84% of total 250
Respondents.
Figure 4.9e Intention Respondent Review
Q5: The Ingredients of the product can complete the nutrition needs
Degree of the agreement in this likert scale is 91% of total 250
Respondents.
1 0%
2 2%
3 14%
4 47%
5 37%
1 0%
2 1%
3 8%
4 37%
5 54%
45
Figure 4.9f Purchase Intention Respondent Review
Q6: I prevere to choose a product with a good packaging
Degree of the agreement in this likert scale is 75% of total 250
Respondents.
Purchase Intention of product influence by recommended product by
trusted people this study found more than 50% of moms prefer to choose
recommended product, free sample also becoming a kick of before they choose a
product because it hard to find the most suitable product for their children because
their consideration is about the complete nutrition needs. The good packaging off
a product is an adding value to give a premium impression in the first sight.
4.4 Data Analysis
4.4.1 Factor Analysis
1. KMO & Significance Test
Table 4.1 KMO & Significance Test SPSS’18
1 4%
2 4%
3 19%
4 36%
5 37%
KMO and Bartlett's Test
Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .709
Bartlett's Test of Sphericity Approx. Chi-Square 1495.626
Df 120
Sig. .000
46
While this research is using the Factor analysis basic the first
requirement that should be fulfil is the Bartlett’s test that measure the
sampling adequacy. For the KMO number, it should be greater than 0.5
and the significant level lower than 0.05, by the result shown in table 4.1
this indicate the high value of the appropriate factor analysis because the
correlation between pairs of variable can be explained by the other
variable.
2. Communalities
Communality is the amount of variance a variable share with the other
entire variable being considered this is also the portion of variance
explained by common factor (Malhotra, 2010). In the communalities table
(see table 4.2) when it shown number less than 0.5, larger sample are
required because larger sample produce more stable solution or the other
option is the variable should be deleted and reanalyze the data without
factor extraction lower than 0,5.
Table 4.2 Cumulative table SPSS’18
Communalities
Initial Extraction
Advertising1 1.000 .748
Advertising2 1.000 .845
Advertising3 1.000 .410
SalesPromotion1 1.000 .788
SalesPromotion2 1.000 .600
SalesPromotion3 1.000 .686
SalesPromotion4 1.000 .642
SalesPromotion5 1.000 .677
DM1 1.000 .707
DM2 1.000 .767
DM3 1.000 .672
47
DM4 1.000 .666
BrandEquity1 1.000 .629
BrandEquity2 1.000 .677
BrandEquity3 1.000 .619
BrandEquity4 1.000 .564
Extraction Method: Principal Component Analysis.
Based on the result above one of the variable with the
communalities lower than 0.5 so the writer going to cut one of the
component in X variable to get a great number extraction in
communalities table. The alteration in number of variable will affect the
KMO test and significant level.
3. Total Variance Explained
In total variance explained shown the extraction of percentage
cumulative rotation sums of squared loading that exceed 60% (see table
4.3). Table below explained that total variance attributed to each factor.
Table 4.3 Total Variance Explained SPSS’18
Total Variance Explained
Component Initial Eigenvalues Rotation Sums of Squared Loadings
Total
% of
Variance
Cumulative
% Total
% of
Variance
Cumulative
%
dimension0
1 4.685 29.282 29.282 2.876 17.972 17.972
2 1.975 12.341 41.623 2.697 16.854 34.826
3 1.757 10.979 52.602 2.386 14.911 49.737
4 1.204 7.523 60.125 1.434 8.965 58.702
5 1.076 6.727 66.852 1.304 8.150 66.852
6 .876 5.474 72.327
7 .689 4.308 76.634
8 .678 4.236 80.871
48
9 .629 3.931 84.802
10 .513 3.207 88.009
11 .462 2.888 90.897
12 .397 2.479 93.376
13 .354 2.212 95.588
14 .282 1.764 97.352
15 .270 1.685 99.038
16 .154 .962 100.000
xraction Method: Principal Component Analysis.
In this table all variable X explained with a percentage 66.852%
which is means this already exceed the criteria of a presentable variance
explained. In the previous test the number of cumulative one of the
variable in X is not exceed 0.5 so that this data should be reanalyze with
the factor analysis until exceed all the criteria.
4. Rotated Component Matrix
Table 4.4 Component Matrix SPSS’18
Rotated Component Matrixa
Component
1 2 3 4 5
DM3 .804
DM4 .758
DM2 .747
DM1 .699 .413
PerceivedQ4 .437 .414
PerceivedQ1 .773
PerceivedQ3 .735
SalesPromotion3 .726
49
T
a
b
l
e
4
.
4
Rotated
The Interpretability of factor can be improved through rotation.
Rotation maximizes the loading of each variable on one of the extracted
factor whilst minimizing the loading on all other factors. Rotation work
through changing the absolute values of the variable whilst keep their
differential values constant. For the rotated component matrix itself there
is several criteria that should be exceed:
(1) 1 Factor should have minimal 3 variables
(2) 1 Factor that only explained by 2 variables can be use if the reliability
test is more that 0.7
(3) If one factor only has 1 component variable, so this factor should be
deleted
(4) If 1 variable explained more than 1 factor the variable should be
deleted too.
Based on criteria above in the table 4.4 the researcher already mark several
item of variable that should be deleted and reanalyze the data, as the result:
1. All variable in Advertising should be deleted
2. 2 variables in sales promotion also deleted
3. 1 variable from brand equity also should be deleted too
PercievedQ2 .686 .460
SalesPromotion2 .480 .432
SalesPromotion5 .808
SalesPromotion1 .761
SalesPromotion4 .712
Advertising1 .813
Advertising2 .858
Extraction Method: Principal Component Analysis.
Rotation Method: Varimax with Kaiser Normalization.
a. Rotation converged in 6 iterations.
50
Below is the data result after reload the data:
Table 4.5 KMO and Bartlett’s Test after Rotation
KMO and Bartlett's Test
Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .715
Bartlett's Test of Sphericity Approx. Chi-Square 798.622
Df 45
Sig. .000
From the number shown in table 4.5 the KMO is already more than 0.5 and
significant level is under 0.05
Table 4.6 Ccommunalities After Rotation
Communalities
Initial Extraction
PerceivedQ1 1.000 .675
PerceivedQ2 1.000 .731
PerceivedQ3 1.000 .605
SalesPromotion1 1.000 .629
SalesPromotion4 1.000 .553
SalesPromotion5 1.000 .722
DM1 1.000 .692
DM2 1.000 .695
DM3 1.000 .624
DM4 1.000 .647
Extraction Method: Principal Component
Analysis.
As written in communalities table all the extraction result already greater more
than 0.5
Table 4.7 Total Variance Explained
Total Variance Explained
Component Initial Eigenvalues Rotation Sums of Squared Loadings
Total
% of
Variance
Cumulative
% Total
% of
Variance
Cumulative
%
51
For total variance explained already exceed the criteria of greater than
60% which is shown in the table cumulative percentage that represent number
65.729
Table 4.8 Rotated component matrix
Rotated Component Matrixa
Component
1 2 3
DM2 .792
DM3 .788
DM4 .768
DM1 .736
SalesPromotion5 .826
SalesPromotion1 .792
SalesPromotion4 .729
PercievedQ2 .852
PercievedQ1 .801
PercievedQ3 .737
Extraction Method: Principal Component Analysis.
Rotation Method: Varimax with Kaiser Normalization.
a. Rotation converged in 5 iterations.
1 Factor in this table already explained by 3-4 variables with reliability number
more than 0.5 so, this structure acceptable as a good rotated component matrix.
dimension0
1 3.373 33.733 33.733 2.492 24.919 24.919
2 1.739 17.390 51.123 2.064 20.642 45.561
3 1.461 14.606 65.729 2.017 20.168 65.729
4 .710 7.103 72.831
5 .671 6.713 79.544
6 .580 5.797 85.341
7 .468 4.676 90.017
8 .431 4.315 94.332
9 .294 2.944 97.276
10 .272 2.724 100.000
Extraction Method: Principal Component Analysis.
52
4.4.2 Reliability test
Through statistical progress using SPSS researcher check the validity and
reliability of each factor make sure the data use is pass the reliability and validity
test, in this test the advertising already delete as the result of earlier step.
Table 4.9 Reliability test of Sales Promotion
Scale: Sales Promotion
Case Processing Summary
N %
Cases Valid 250 100.0
Excludeda 0 .0
Total 250 100.0
a. Listwise deletion based on all variables in the
procedure.
Reliability Statistics
Cronbach's
Alpha N of Items
.712 3
Item-Total Statistics
Scale Mean if
Item Deleted
Scale Variance
if Item Deleted
Corrected Item-
Total
Correlation
Cronbach's
Alpha if Item
Deleted
SalesPromotion1 6.3800 3.835 .513 .643
SalesPromotion4 6.8280 3.476 .488 .682
SalesPromotion5 6.5280 3.463 .598 .539
53
Table 4.10 Reliability test of Direct Marketing
Scale: Direct Marketing
Case Processing Summary
N %
Cases Valid 250 100.0
Excludeda 0 .0
Total 250 100.0
a. Listwise deletion based on all variables in the
procedure.
Reliability Statistics
Cronbach's
Alpha N of Items
.800 4
Item-Total Statistics
Scale Mean if
Item Deleted
Scale Variance
if Item Deleted
Corrected Item-
Total
Correlation
Cronbach's
Alpha if Item
Deleted
DM1 10.2120 6.601 .644 .735
DM2 10.4200 6.574 .673 .718
DM3 9.8880 7.602 .560 .774
DM4 9.7520 8.268 .599 .763
Table 4.11Reliability test of Perceived Quality
Scale: Perceived Quality
Case Processing Summary
N %
Cases Valid 250 100.0
Excludeda 0 .0
54
Total 250 100.0
a. Listwise deletion based on all variables in the
procedure.
Reliability Statistics
Cronbach's
Alpha N of Items
.743 3
Item-Total Statistics
Scale Mean if
Item Deleted
Scale Variance
if Item Deleted
Corrected Item-
Total
Correlation
Cronbach's
Alpha if Item
Deleted
PerceivedQ1 8.3720 1.953 .572 .655
PerceivedQ2 8.4680 1.953 .596 .628
PercievedQ3 8.4000 1.912 .541 .694
Table 4.12 Reliability test of Purchase Intention
Case Processing Summary
N %
Cases Valid 250 100.0
Excludeda 0 .0
Total 250 100.0
a. Listwise deletion based on all variables in the
procedure.
Reliability Statistics
Cronbach's
Alpha N of Items
.607 5
Item-Total Statistics
55
Scale Mean if
Item Deleted
Scale Variance
if Item Deleted
Corrected Item-
Total
Correlation
Cronbach's
Alpha if Item
Deleted
PI2 16.1680 4.839 .398 .534
PI3 16.0840 4.334 .481 .480
PI4 15.3120 6.207 .266 .596
PI5 15.0920 6.494 .223 .612
PI6 15.5200 4.998 .448 .505
In Summary, from the Reliability and validity test in both dependent and
independent variable it explainedbefore extraction after extraction and after
rotation. Those table above represent acceptable item of variable because the
croncach’s alpha already grater than 0.5.
4.4.3Multiple Regressions
4.4.3.1 Normality Test
As Stated in research method to test the normality researcher going to
analyze the data based on the histogram pattern and P-P plot dot.
1. Histogram
Figure 4.10 Histogram Result
56
Normality has shown in this histogram because this histogram shapes in bell
pattern. As mention by the Pamela 2006 normality can be accepted if the ratios
are -2 to +2.
2. P-P Plot Regression Standardized Residual
Figure 4.11 Regression standardized Residual
57
By checking the normality using the P-P plot standardize residual show
thevalues lining up along the diagonal line, so that means this regression
model is acceptable.
58
3. Scatterplot
Figure 4.12 Scatter plot
This graphic shows the right picture, where the dot pattern spread above and
below zero point at Y axle. It means the regression model in here free from
heterocedasticity problem.
4. Collinearity Statistic
Table 4.11 Multicolinearrity Problem
Model Collinearity Statistics
Tolerance VIF
1 (Constant)
TotalSP .914 1.095
TotalDM .835 1.198
TotalPQ .886 1.129
59
Table 4.11 also shows this regression model free from multicolinearrity
problem Means that there is a strong relation between X and Y. Because the
tolerance is above 0.10 and the VIF (Variance Inflation Factor) number is below
10.
1. Sales Promotion
Sales promotion variable tolerance is 0.914 or >0.10, and the VIF is 1.095 or
around 1 means that this regression is free from multicolinearrity problem.
2. Direct Marketing
Direct Marketing variable tolerance is 0.835 or >0.10, and the VIF is 1.198 or
around 1 means that this regression is free from multicolinearrity problem
3. Perceived Quality
Perceived Quality variable tolerance is 0.886 or >0.10, and the VIF is 1.129 or
around 1 means that this regression is free from multicolinearrity problem
4.4.3.2F Test
Table 4.12 Anova Table
ANOVAb
Model Sum of Squares df Mean Square F Sig.
1 Regression 70.395 3 23.465 73.993 .000a
Residual 78.014 246 .317
Total 148.409 249
a. Predictors: (Constant), totalPQ, totalSP, totalDM
b. Dependent Variable: totalPI
Because of the significant shown in anova table already less than 0.05,
means that all independent factor after factor analysis and reliability
simultaneously have significant influence toward dependent factor.
60
4.4.4.3 T Test
Table 4.13 Coefficients
Coefficientsa
Model Unstandardized
Coefficients
Standardized
Coefficients
t Sig. B
Std.
Error Beta
1 (Constant) .356 .255 1.397 .164
totalSP .465 .042 .534 11.032 .000
totalDM .076 .045 .085 1.683 .094
totalPQ .352 .058 .298 6.078 .000
a. Dependent Variable: totalPI
Total sales Promotion partially have a significant influence to Y this can shown
by the sig number is below than 0.05, But for Direct Marketing partially have no
significant influence to Purchase Intention this is shown by the sig number greater
than 0.05 and the last Perceived Quality partially have a significant influence to
Purchase Intention this also highly prove by sig number below 0.05.
Table 4.14 Coefficients After DM deleted
Coefficientsa
Model Unstandardized
Coefficients
Standardized
Coefficients
t Sig. B
Std.
Error Beta
1 (Constant) .428 .252 1.695 .091
totalSP .483 .041 .554 11.789 .000
totalPQ .381 .055 .323 6.882 .000
a. Dependent Variable: totalPI
In table 4.14 it show the result after total Direct marketing deleted so in the
significant table both variable already below than 0.05.
61
4.4.4.4 Adjusted R2
Table 4.15 Model Summary
Model Summaryb
Model
R R Square Adjusted R Square
Std. Error of the
Estimate
dimension
0
1 .684a .468 .464 .56523
a. Predictors: (Constant), totalPQ, totalSP
b. Dependent Variable: totalPI
To check the R2 for total contribution which is total Perceived Quality and
total sales Promotion toward purchase intention is 46.8% and the rest of 53.2 % is
the contribution from another variable that haven’t included in this research. By
the number of 2 variables which is Sales Promotion and Perceived Quality already
give a big number of contributions on Purchase Intention so it can be conclude
that 2 independent Variables give a great contribution toward dependent variable.
4.5Interpretation of Result
Table 4.16 The Summary of the Result of the Research
Hypothesis Coefficient F / t-value Sig. Conclusion
H1: There is positive
relationship in promotional
mix and perceived quality on
purchase intention
.381 6.882 0.000 Accept
H2: There is positive
relationship between sales
promotion and Purchase
Intention
.483 11.789 0.000 Accept
62
In the earlier step there are 2hypotheses that becoming an object to prove by the
researcher, after data loading here is the proving of the hypothesis:
1. There is a relationship between Sales Promotion and purchase intention, based
on the table above the hypothesis is accepted with the result (t= 11.789 .=
0.554, p= 0.001)
2. There is a positive relation between promotional mix and perceived quality on
the purchase intention. Promotional mix is a part of marketing strategy that
company consider as the stepping stone to get grater respond from targeted
market. In this research writer found a positive relation in Sales Promotion and
perceived Quality toward purchase intention and by this statement the h2 is
acceptable in this research. it shows that the value of Adjusted R Square or
Coefficient of Determination is 46.8% or 0.468. The result means 2 variables
which is Sales Promotion and Perceived Quality Explaining46.8 % give an
influence toward Purchase Intention, while the rest is explained by other factors
outside from the research model.
In the analyzing all aspect in promotional mix to know which one is the most
influence factor toward purchase intention, the researcher also partially analyze
per factor in promotional mixand the following is the research finding:
1. Positive impact between Sales Promotion and purchase intention on
Mead Johnson product.
In the earlier table above, it highly approve there is a significant influence
between the sales promotion and the purchase intention. From the primary
data collected sales promotion take a quite big contribution to encourage
people to buy a product.
2. Positive relation between perceived quality and purchase intention
toward Mead Johnson product
63
Perceived quality also take a big influence for the purchase intention, at
first in the consideration before purchase, quality measured as the first
aspect to be considered by mom in term of buying milk formula for their
children and for their maternity.
These research findings verify that sales promotion as the most influencing factor
in the promotional mix. So, by finding the statement above it answered the study
objective. Compare to the previous research by Shih (2010)and Kumar (2011)
both of research showing the positive relation between promotional mix and
perceived quality toward purchase intention In Kumar research about the
manufacturer industry researcher finding promotional take a lot action in
determining sales number. Added by theory of Marketing mix by Prof E. Jerome
McCharty this basic concept in marketing is can be manufacturer successor in the
future but it also depend in the marketer way of thinking, they don’t need a lot
expenses in selling the product but they only should apply the best mix so it could
be suitable for everyone with different background.
64
CHAPTER 5 –CONCLUSION & RECOMMENDATION
5.1 CONCLUSION
1. Promotional mix and perceived quality gives a significant impact to customer
purchase intention with the result (F= 73.993, df = 249, p = 0.001) Which means,
there is significant influence between independent and dependent variable.
2. After measuring the level of significant all variable in promotional mix, sales
promotion give the biggest contribution toward purchase intention even though in
this study cannot prove the significant level of influence of advertising and direct
marketing toward purchase intention, those indicator is still needed in promotional
mix for advertising is used for acknowledge the target market, and the direct
marketing can reach potential buyer directly.
2. Based on the analysis and discussion this research also established that the most
influencing factor in promotional mix which is the sales promotion. So, the
objective of the study already answered. There is significant relation between
sales promotion and perceived quality on the mother’s purchase Intention. Based
on calculation of adjusted R2 those two variables explained 46.8% and the rest of
53.2 % is the contribution from another variable that haven’t included in this
research.
5.2 RECOMMENDATION
5.2.1 Recommendation to company
1.For FMCG Industries now a day in the era of globalization should be
competitive in the market because fast changing trend and tight rivalry will push
away the one with no effort in entering the market. Brand building, promotion,
perceived quality depend a lot in advertising through media, and it will bring up
the purchase intention if they know how to approach their target appropriately.
65
2. In this research we can conclude that to increase the purchase intention of a
product, company should pay more attention to the promotional mix that they run
in Plan of action in marketing strategy because this research finding prove that
there is a significant influence in promotional mix and the perceived quality
toward milk formula purchase intention.
3. In term of giving product knowledge to make sure people about the product
strength, nutrition in ingredient, and quality control of a product not to forget by
adding information about their babies problem and solution, this can be the way to
company combine their direct approach which mean open the workshop by
invited Indonesian mom, nurse and not to forget gynecologist as the speaker.
5.2.2 Recommendation to next study
1.In this research especially in promotional mix the researcher only can explain
the part of sales promotion so for next study, the recommendation is in next study,
add more variable of promotional mix and it will give a big probability of
acceptable variable in promotional mix so that next research can be develop
deeper. Second, for the primary data adding more questions in questionnaire and
also adding more respondent.
2. Future study can identify more variable in promotional mix and take another
independent variable such as brand equity that bring brand awareness, brand
loyalty and brand image to make it more complex and discuss diffuse relation of
those variable toward a purchase intention.
66
References
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Armstrong, G., &Kotler, P (2009). Marketing- An Introduction.
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originally published in Privredna kretanja i eknomska politika (EconomicTrends
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Kumar, R.. Singh, R. (2011). Marketing Mix Strategies of Small
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67
Website:
Business FMCG Indonesia
http://wartaekonomi.co.id/berita20921/tren-konsumsi-domestik-fmcg-
meningkat.html
Business Dictionary
http://www.businessdictionary.com/definition/promotion-mix.html
http://www.businessdictionary.com/definition/purchase-intention.html
http://www.businessdictionary.com/definition/perceived-quality.html
FMCG trend In Indonesia
http://www.gbgindonesia.com/en/manufacturing/article/2013/indonesia_s_
fast_moving_consumer_goods_fmcg_sector.php
Mead Johnson Website
http://www.meadjohnson.co.id
Statistics review
http://bio.classes.ucsc.edu/bio286/MIcksBookPDFs/QK06.PDF