measurement of customer based brand equity for shampoo...

MEASUREMENT OF CUSTOMER BASED BRAND EQUITY FOR SHAMPOO PRODUCTS IN JAKARTA

THESIS

RESEARCH PROJECT

by

Chandni

(1201001012)

08THE

BINUS INTERNATIONAL

BINUS UNIVERSITY

JAKARTA

2012

i


THESIS

Proposed as a requirement for obtaining

Sarjana degree at

Marketing Program

Education Level Strata‐1 (Sarjana/Bachelor)

by

Chandni

(1201001012)

08THE

BINUS INTERNATIONAL

BINUS UNIVERSITY

JAKARTA

2012

ii


THESIS

Prepared by:

Chandni

1201001012

Approved by:

Supervisor

Anita Michiko Tamala

D4022

BINUS UNIVERSITY

JAKARTA

2012

BINUS INTERNATIONAL

BINUS UNIVERSITY

iii

Statement for readiness in attending Thesis Defense examination

I, Chandni

Hereby state that the thesis entitled:

The measurement of customer based brand equity for fast moving consumer goods

in Jakarta.

is truly my original work and is never brought up as a scientific paper, partly or

entirely, on my name or other parties

Chandni

[1201001012]

Supervisor’s approval

I approve this thesis to be in Defense examination

Anita Michiko Tamala 11 June 2012

Supervisor

iv

ACKNOWLEDGEMENT

This paper was written with guidance of the Lord in which the author wishes the glory

and thanks for the Lord for the completion the study.

The author then would like to thank the following people who have been very

Significant.

1. Kishore Nanwani and Roshni Nanwani, the parents of the author who

have been giving undying support and prays to the author in times of happiness and

in times of trouble. The immense love and support will always be very much loved

until the end of times.

2. Mandeep Nanwani author’s brother. With his support and prayers which have guide

the author in many ways that he may or may not realise, have given the author the

motivation to do good and always trying to be better.

3. Anita Michiko Tamala, MBA the author supervisor, that have given hard work and

efforts to complete the thesis on time. Thank you for devoting so much time, providing

guidance and advice,understanding and patience. Thank you for the lesson of a lifetime

that have given the author knowledge, value, and experience during this past short

semester.

4. The author’s lecturers during the years of study in Binus International, namely

Ms. Evi Rinawati Simanjuntak, MM , Dominique Razafindrambinina, Ms. Rini

Setiowati,SE.,MBA, Ms Lidia M.Iswara ,MBA who has been teaching the author and

awarding the best result that the author could get in thesis; For all the authors lecturers

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who has been giving insights and advices. Thank you very much for the patience support

and guidance too

5. The SAR management, Miss Roosalina Wulandari, Mr. Ari Margiono, and Ms Yuana

Mardhiana who has always supported the author in the university journey. Thank you

for building myself as how I am today.

6. The author’s best friends Nikita Durgani and Taruna Tarachandani that have given

endless support and guidance with a memorable campus life.

7. The author’s close friends Esha Khiani, Florida Wong, Roshni Bedi, Sanjay

Vasandani, Dinesh Punjabi, Prashant Gindwani Sonya Karaskalau, Aarti Budhrani,

Sharon Tanamas who have always been around regardless in laughs or in tears literally.

7. All Binusians from all batches who have been very supportive, namely Janet Agustin

Gozali, Cherisha Lidia, Raina, Monika Dwi, Audrrey Nur Safira, Toar Gemilang

Manembu, Aldy Destio Sanjaya, Divya Topandasani, Cynthia Wardhani, Wisnu

Wardhana, Vincentia, Eric Lemuel, Brian Chuang, Cassandra Etania, Mohit Khiani,

Ravina Alimchandani, Haykal Kamil, Jessica Durgani and all the 2012 batch which the

author did not manage to put here.

8. Last but not the least to all the respondents who have been very generous to be

Surveyed.

ii

BINUS UNIVERSITY INTERNATIONAL BINUS UNIVERSITY

___________________________________________________________________

Marketing Major

Sarjana Ekonomi Thesis Even Semester year 2012

The measurement of customer based brand equity

for shampoo products in Jakarta

Chandni (1201001012) Abstract Objectives – This paper have an objective to answer some of the research questions and to measure the effectiveness of Perceived Quality, Brand Awareness, Brand Association and Brand Loyalty in terms of Brand equity for the fast moving consumer goods which is Shampoo. The research also measures which of the antecedents effects to over all brand equity the most, in order to help shampoo brand managers to strategically plan for their marketing plan.

Method – 200 questionnaires were distributed through personal approach using convenient sampling. Out of the 200 questionnaire 158 distributed came back valid. Using SPSS, reliability of the questionnaire was tested. To prove the hypothesis, regression was used the research also used some calculations related for the findings to make it more informational and reliable for the reader.

Results – Out of 4 hypotheses, 2 were rejected. The calculations show the conclusion on which of the 4 factors effects the most to over all brand equity the most in the shampoo products. The analysis of the hypothesis shows which of the factors are not very reliable to focus its strategy on and which of those are more meaningful.

Conclusion – Out of four antecedents effecting overall Brand Equity, The one attaining the highest acceptance are Brand loyalty and perceived quality .Brand awareness and Brand association are not linear in relationship to the overall brand equity.The research took into considerations the calculations involve in creating a high accuracy findings. The concluded research is however different from the replicated journal as the market of the respondents and the product being tested are different.

Keyword – Perceived Quality, Brand Association, Brand Awareness, Brand Loyalty and Brand Equity.

iii

Table of Contents Cover

Title Page.............................................................................. Error! Bookmark not defined.

Cerificate of Approval ......................................................... Error! Bookmark not defined.i

Acknowledgement...…………………………………………………………………….iv

Abstract…………...………………………..…………………………………………..vi

Table of contents…………………………..………………………………………..…vii

Table of Tables ................................................................. viiError! Bookmark not defined.

Table of Figures ................................................................. Error! Bookmark not defined.x

CHAPTER I

INTRODUCTION ............................................................................................................ 1

1.1 Background ............................................................................................................. 1

1.1.1 FMCG industry overview ................................................................................ 5

1.3 Scope ..................................................................................................................... 11

1.4 Aims and benefits .................................................................................................. 12

1.5 Research Questions ............................................................................................... 13

1.6 Structure ............................................................................................................... 13

CHAPTER II

LITERATURE REVIEW .............................................................................................. 15

2.1 Importance of Brand equity................................................................................... 15

2. 2 Perceived quality .................................................................................................. 17

2.3 Brand Awareness................................................................................................... 18

2.4 Brand Association ................................................................................................. 19

2.6 Conceptual framework .......................................................................................... 20

2.6.1 Perceived quality has a significant positive direct effect on brand equity ..... 21

2.6.2 Brand awareness has a significant positive direct effect on brand equity ...... 22

2.6.3 Brand association has a significant positive direct effect on brand equity .... 23

2.6.4 Brand loyalty has a significant positive direct effect on brand equity ........... 24

iv

CHAPTER III

RESEARCH METHODOLOGY ................................................................................. 25

3.1 Research Objectives .............................................................................................. 25

3.1.1 Research Questions ........................................................................................ 26

3.1.3 Scope .............................................................................................................. 26

3.2 Research Design .................................................................................................... 27

3.2.1 Data collection Method .................................................................................. 29

3.2.2 Questionnaire development ............................................................................ 31

3.2.3 Scaling technique ........................................................................................... 32

3.2.4 Hypotheses ..................................................................................................... 33

3.3 Data Analysis Method ........................................................................................... 34

3.3.1 Original research statistical analysis .............................................................. 35

3.3.2 Current research analysis ............................................................................... 36

3.3.3 Reliability testing ........................................................................................... 37

3.3.4 Validity testing ............................................................................................... 37

3.3.5 Linear regressions ( Multiple Regression) ..................................................... 37

3.3.7 Sampling Method ........................................................................................... 38

CHAPTER IV

RESULTS AND FINDINGS ......................................................................................... 43

4.1 Exploratory Study ................................................................................................. 44

4.2 Pre test Analysis .................................................................................................... 45

4.2.1 Reliability ....................................................................................................... 45

4.2.1 Validity ........................................................................................................... 47

4.3 Research Analysis ................................................................................................. 58

4.3.1 Correlations .................................................................................................... 58

4.3.2 Regression ...................................................................................................... 64

4.3.3 Multiple Regressions ...................................................................................... 65

Variable interpretation............................................................................................. 67

H2 Brand Association is directly affected to brand equity ..................................... 68

4.4 Demographic Information of Respondents ........................................................... 71

v

4.4.1 Survey results ................................................................................................. 71

4.5 Cross Tabulation ................................................................................................... 78

CHAPTER V

CONCLUSION AND RECOMMENDATION ........................................................... 81

5.1 Conclusion ............................................................................................................. 81

5.2 Managerial Implications:....................................................................................... 85

(A) Perceived Quality.............................................................................................. 85

(B) Brand Awareness .............................................................................................. 86

(C) Brand Association ............................................................................................. 87

(D) Brand Loyalty ................................................................................................... 88

5.3 Limitations of the research .................................................................................... 97

5.4 Recommendations for future research ................................................................... 90

BIBLIOGRAPHY .......................................................................................................... 94

APPENDICES .............................................................................................................. 102

Appendix A: Questionnairre ....................................................................................... 94

vi

List of Tables

Table 3.2 Differences between original and current research……………………….….39

Table 3.3Operational of variable measures……………………………………………..41

Table4.1Reliability test…………………………………………………………………45

Table 4.2 Confirmatory Factor analysis

Table 4.2.1 Perceived Quality…………………………………………………..47

Table 4.2.2 Brand Awareness.. ………………………………………...………49

Table 4.2.3 Brand Association………………………………………………….51

Table 4.2.4 Brand Loyalty………………………………...……………………53

Table 4.2.5 Brand Equity……………………………..…...……………………55

Table 4.3 Pearson Correlations

Table 4.3.1 Perceived Quality…………………………………………………..58

Table 4.3.2 Brand Awareness...……………………………………………...…59

Table 4.3.3 Brand Association………………………………………………….60

Table 4.3.4 Brand Loyalty……………………………………………………...61

Table 4.3.5 Brand Equity………………………………..……………………...62

Table 4.4 Regression Output……………………………………………………………64

Table 4.5 Multiple Regression Output ……………………………...………………….69

Table 4,5 Cross Tabulation……………………………………………………………..72

Table 4.5.1 Gender with Brand Equity…………………………………………77

Table 4.5.2 Education with Brand Equity………………………………………79

vii

List of Figures

Figure 1.1 Increase in people concern for appearance…………………………….……..3

Figure 1.2 Most used Shampoo Brands (30 respondents survey)……...………..………4

Figure 1.3 FMCG in Indonesia…………………………...……………………………...6

Figure 1.4 Number of shampoo use and available in the market………………………...7

Figure 1.5 Dove sales volume………………………………………………………..…..8

Figure 2.1 Power of Brand……………………………………………………………...14

Figure 2.2 Research Model………………………………...…………………………...24

Figure 3.2 Current research model……………………………………………………...29

Figure 4.1 Exploratory Research…………………………………………………….….39

Figure 4.2 Demographic factors………………………………………………………...64

Figure 4.2.1 Gender……………………………………………………………..64

Figure 4.2.1 Age………………………………………………………………...65

Figure 4.2.1 Education……………………………………………………..…...66

Figure 4.2.1 Occupation………………………………………………………...67

Figure 4.2.1 Monthly expense…………………………………………………..68

Figure 4.2.1 Longtime to choose shampoo……………………………………..69

Figure 4.2.1 Most used shampoo brands ……………………………………….70

1

CHAPTER I

INTRODUCTION

1.1 Background

This research is a replication of the original journal by Xiao Tong and Jana M. Hawley

titled “Measuring customer-based brand equity: empirical evidence from the sportswear

market in China” (2009). The current research is titled “The measurement of customer

based brand equity for shampoo products in Jakarta”

Brand equity is defined as the added value endowed by the brand name (Farquhar et al.,

1991). Brand equity is the difference between overall brand preference and

multiattributed preference based on objectively measured attribute levels (Park and

Srinivasan, 1994).

Nowadays, the world is becoming a very competitive place to live in. Not only

competition among people themselves, but businesses, products as well as services are

also struggling to survive. With the development of businesses, people all over the world

are exposed to various brands in their daily life. Brand is a set of perceptions and images

that represents a company, product or service. A brand is the essence or promise of what

will be delivered or experienced (www.persuasivebrands.com). Therefore, a brand is a

vital asset to any company. Building brand loyalty and brand equity is essential in order

to endure the competition. There are several factors that may have an impact towards

brand equity. These factors are called antecedents of brand equity that consists of the

brand awareness, brand association, the perceived quality of the brand as well as the

brand loyalty. In order to evaluate the value of the brand equity, it needs to be

2

communicated to the consumers. Advertising is known to be the most common way of

communicating a brand to mass target and hopefully lead to increasing the brand

awareness.

Advertisement such as; Television, Magazines, Radio, Internet, Billboards, etc. People

are bombarded daily with different brands, therefore it is a big challenge for every

company to have their products being recorded in the consumers’ “Top of Mind” or

Brand Salience.

Upon achieving the brand salience, a company can ensure that they have succeeded

among the market competition.

Factors that constitute the brand equity cause a positive brand name in the eye of its

consumers.

In order to know the five most used brands that will be taken in to account in the

questionnaire, the author has conducted an exploratory survey, of 30 respondents to

identify the 5 most purchased shampoo that are mostly used by people in Jakarta. The

research was done through sending a broadcast message from the people in the author’s

blackberry contact. The question was sent through BBM as an informal message that

asked each 30 respondents about the shampoo that they are currently using.

From the survey it is shown that the top five most used brands are highly purchased are :

Sunsilk, Dove, Clear and Head shoulder followed with Pantene attaining the last rank

3

Figure 1.1 – Increase in people concern for appearances

Source - http://flowingdata.com/2012/02/24/changing-face-of-plastic-surgery/

With a high rise of people trying to look good and do many kind of activities, thus this

research will focus on shampoo products that is supposedly of low involvement products

as it is purchased on a routine basis,but at the same time become important for many

people and is regarded as an important decision when it is to be purchased as it has a

high impact for the customer’s appearances.

4

Thus, the research of measuring brand equity for shampoo brands can be used in this

research as brands for the product shampoo are cluttered.With promising tag lines and

assurance to their customer is created to set the best equity to it’s brand. Through this

research the author will show on the focus of the antecedents when building brand

equity for shampoo brand based on the antecedents.

In addition the reason why the author initiated this topic for the findings is because of

the cluttered brands that are now seen everywhere in everyday life. There are already too

many brands promoting the same functions that are why shampoo brands need to

establish a strong overall brand equity in order to survive in the competition. Brands

compete with one another to create high value and thus measurement in creating brand

equity become very important especially in FMCG products.

5

1.1.1 FMCG industry overview

As people now a days have become very consumtive in their every day life low

involvement products have certainly increase in demand. Shampoo being considered one

of products that people consume on a regular basis, follows the same trend change

Figure 1.2 – FMCG in Indonesia

Source - http://icetrack.blogspot.com/2011/07/expansions-of-multi-national-fmcg.html

Figure1.2 shows the increase in the level of fast moving consumer goods over the years

since year 2004 untill 2010. The impact of this increase in the Indonesia market makes

businessess competes over one another to win the top of mind of its customer.

6

As these FMCG products are easily acquired in many places such as the grocery

vendor,minimarket, supermarket and hypermarket people will buy it most of the time

when they are in need especially products like shampoo. Thus, brand equity is important

for this FMCG products to be developed in these competetive market as today and

consumer need to understand the value of the products that they are purchasing.

Shampoo which is in the category of the fast moving consumer goods are very critical in

purchase as different people have different belief over the brand they select. There is a

tendency people switching their brands of shampoo products that they are currentl;y

using ith other competing brands when they are exposed to the different variety of

shampoos having different prominence.

7

Figure 1.3 - Number of shampoo used frequently and available in the market.

http://www.carouselstrands.com/highlights/category/products/

Figure 1.3 shows the different number of brands that are available in the market and are

frequently bought by the consumers. Purchases of these products are very difficult if

brand equity is not placed in the mind of the consumer. When many products are

exposed to the customers there are chances that people may have forgotten on the

factors that build up these brand equity. Brand manager can therefore focus on every

antecedents effecting brand equity, if one fails the other three can support another.

8

There are many variety of shampoos that have different functions in assisting people

during selection. The variations are through its functions such as , for damaged hair, dry

hair, anti dandruff, etc, or even its essence which are herbal, menthol and so on so forth.

9

Figure 1.4 Dove sales volume

Source - http://www.cotohousingblog.com/wp-content/uploads/2010/04/Dove-30-Day-Sales-Volume.jpg

Figure 1.4 shows a significant increase in the sales volume of a shampoo brand which is

Dove. Dove a unilever company based brand products which is dealing with many

product lines of FMCG products comes up with many different variety of shampoo

products that people can easily buy them according to the colors that defines the

function of the shampoo. The increase in sales of one particular brand shows that the

way of consumption that people have over shampoo products have increased overtime

with increse in populations.

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1.2 Problem Statement

Shampoo which is supposedly to be a low involvement product category of the FMCG

however has been given more involvement by some people as it concerns their

appearance. Almost everyone around the globe uses shampoo in their daily life, it is

essential to obtain consumers’ loyalty and assess the brand equity. With the numerous

brands of shampoo available, consumers are more likely to have more choices and this

may lead to a lower brand loyalty as well as the lower brand equity. Consumers tend to

change their shampoo brand frequently especially when they are exposed to active

advertisments.Due to the high competition and wide range of selection for shampoo

brands, it becomes crucial to know which antecedents effects the most towards its brand

equity.The main issue that the author proposes is to be aware of the factors which have a

high impact toward the brand equity of FMCG products especially shampoo. By

conducting this research the author will investigate on the measurement of Customer

based brand equity for shampoo in order to assess on which of the factors that is

perceived quality,brand awareness, brand association and brand loyalty have higher

effects to brand equity

11

1.3 Scope

This research identifies the factors that have an impact towards the brand equity. The

survey is conducted in the capital city of Indonesia that is Jakarta, in which the author

will use the population of Jakarta as representatives of Indonesia as a whole. The data

collection method used is in the form of paper based questionnaires targeted to 200

respondents. The questionnaires were distributed in places where FMCG products are

most familiar and mostly sold. Such as: stores, minimarts supermarkets and hypermarts

as well as retail places. The research did not take any specific age group. All age group

are welcomed as long as they are able to answer the necessary questions. The target

respondents are those who are able to make their own selections and purchased in order

to avoid bias of random selection.The type of questionnaire is considered to be

convenient sampling.

The questionnaire in this research will have a case wise deletion when there are

incomplete responses by the respondents.

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1.4 Aims and benefits

Aims

- To examine all the factors influencing brand equity

- To have a better knowledge towards consumers purchasing behaviour of

shampoo products

- To have a better view on the product involvement of shampoo brands from the

consumer perspective.

- To assess the most influential antecedents of the over all brand equity.

Benefits

- Assist brand managers in building as well as maintaining of a particular product

or brand.

- To help marketers in FMCG industry plan their communication strategy in order

to have a high over all brand equity.

- From the company point of view it will help in ensuring them to maitain the

prominent results in order to built and maintained brand equity.

- To have a clear understanding towards the product involvement of FMCG

products.

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1.5 Research Questions

The researcher will try to answer the following question to complete the findings.

RQ 1 : Does perceived quality have a significant positive direct effect on brand equity?

RQ 2 : Does brand awareness have a significant positive direct effect on brand equity?

RQ 3 : Does brand association have a significant positive direct effect on brand equity?

RQ 4 : Does brand loyalty has a significant positive direct effect on brand equity?

The research will show that whether the four antecedents that are brand awareness,

perceived quality, brand association and brand loyalty cause a positive effect to brand

equity.

1.6 Structure

The research will consist of 5 structures that will consist of 5 chapters with each chapter

explaining deeper about the research.

CHAPTER I: INTRODUCTION

This consist of the background of brand its importance and the different power of brand

equity. This also show the growth of FMCG products in Indonesia, the considered

questions in making the findings more reliable with the scope of respondents for this

research. Lastly the aims and benefits of the research is explained

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CHAPTER II : LITERATURE REVIEW

This chapter will explain the theory of the variable from the model; this includes

definitions of the variable and other research as a reference to make the research more

appropriate and reliable.

CHAPTER III : RESEARCH METHODOLOGY

In this section of the research it shows the methodology in the original paper of the

journal and certain adjustments will be created to adjust the culture and type of

questions to be asked in Indonesia.

CHAPTER IV : FINDINGS AND ANALYSIS

This chapter include the results of the survey with the evaluations and analysing of the

research taken place.

CHAPTER V : CONCLUSION AND RECOMMENDATIONS

This last chapter summarizes the results and findings and also it shows the suggestions

on the researcher and marketer for the next findings.

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CHAPTER II

LITERATURE REVIEW

This chapter will evaluate on the variables of the model .The definitions and also the

relationships are also proven by other authors that are from journals, articles and also

books to support the research

2.1 Importance of Brand equity

(Kusum L. Ailawadi, , Kevin Lane Keller 2004) There is a growing realization that

brands are one of a firm's most valuable intangible assets, branding has become as a top

management priority. Most commonly brands are unique and different from those of its

competitors. With the help of these brands consumer will evaluate these high and low

involvement products. Brands that are helpful for customer to be an indication of its

reliability, are mostly through the tagline that is promising, the media exposure that is

more likely to be frequent and set a consideration for the customer to purchase when

exposed to the product in reality, the logo that differs the brand from others and also the

positive quality that they have that make people continue to purchase in the long run and

does not change to other substitute brand.

Brand equity can be defined as the power that the name of a product can create in the

mind set of each customer exposed to it. That might be positive or negative according to

the techniques in bringing up the brand.

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Figure 2.1 power of brand equity

Source - http://withfriendship.com/user/cyborg/brand-equity.php

The different criteria of this brand equity cause differently to customer mind consciously

and unconsciously. A good brand equity leads to Top of mind. Top of mind that are

apart of the equity of the band can win in the market when thay are thought about during

a buying situation of a customer (brandingstrategyinside.com).According to Aaker

(1991) research on “’brand equity leading to Top of mind and loyalty” it defines brand

equity as a set of brand asset (and or liabilities) that is attached to a brand, it can be

through its name and symbol, that add to (or subtract from) the value that is presented by

a product or service to a firm and /or to that firm’s customers.

The brand equity is seen to be company’s asset. The higher this positive asset, therefore

the more likely will be people’s willingness to purchase. Brand asset that involve brand

17

identity and association, perceived quality is a stepping ladder that every brand would

like to achieve.

Keller (2001) Defines brand equity as an added value that an organization attach to its

product based on how the brand and consumer are linked through consumer feelings,

thoughts, images, beliefs, perceptions.

(keller 1993) “Brand equity in terms of the marketing effect uniquely attributable to the

brand”. Therefore each brand equity have a role that increases the value of the brand.

2. 2 Perceived quality

The value that a brand gives to a product is perceived differently by different people

exposed to it. The belief or the perception that customer create are due to the asset of the

brand that they can finally conclude on whether it fits their lifestyle, necessities or

function. The perception that customers have, over a product or brand may vary when

many brands are exposed to them all the time. The quality that a product brings does not

only depend on the brand that raise its name but also the quality of the product itself that

is not deceitful and is of good use for the customers.

Perceived quality is achieved through past experience, education picked out at risk and

conditional variables such as purchase cause pay for state, occasion force, and

community settings of customers Holbrook & Corfman, (1985)

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2.3 Brand Awareness

The value that a customer has over a brand is due to the existence of the products in the

market. With the help of the technique that they use can bring customer awareness on

the product capabilities, benefits, and uses. Brand awareness is the strength of a

customer’s memory that records for a particular brand Hofmann, states that, the higher

the awareness of brand to the customer, the higher is the value it has in customer’s mind.

This evaluation of brand can be distinguished as positive and negative depending on the

belief they have on the product. The awareness of the brand that is needed by all brands

is to be positive so that they are in the consideration set when customer makes a

purchase.

According to Leo Boghart and Charles Lehman in “what makes a brand name familiar”

the brand that is in the particular product class, will differ accordingly in their familiarity

to consumers but share certain characteristics based on non-products attributes and a

unique marketing environment. The familiarity of a brand due to its awareness is one of

the highest asset that a company can gain especially when it is perceived in a positive

manner that the probability that it will be purchased or consumed is high. These

awareness in brand as explained by Rossiter and Percy , that brand awareness is the

essential first step in building a brand , with many of the supporting authors create the

relationships of these brand awareness and its benefits they have in response to

purchase likelihood and finally purchase.

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2.4 Brand Association

Consumer’s associations with corporate brands are in general based on three

associations, which are, social expectations, corporate behaviour traits and associations

based on trust. (George S. Low, Charles W. Lamb Jr 2000) understanding of brand

associations is needed to assist in furthur theoretical development and practical

measurement of the construct. These brand association is built in the perception of

customer when looking at a brand. Customer built a certain image and associates it with

their day to day lifestyle and work. Food products that are instant and made easily are

very beneficial for customers that leads a very busy life but it might not be judged as an

advantages for mothers that are not likely to be busy and can cook for the family. The

association of the brand is perceived differently in the mind set of customers. A benefit

of one person may not be the benefit to the next.

Thus, a positive brand image is thereby created through the building of a strong

favourable and unique association to be recalled in a memory Dennis A. Pitta,(1995)

Brand association can be through the logo , icon , packaging , advertisements , tag line

or promotions of the brand that makes customers and viewers associate the brand with

the targeted criteria of the company. For E.g. Mercedes Benz targeted itself for people

that have an income that is high. They have achieved a targeted association in its

customer’s mind set. When defining Mercedes, people will immediately associate it with

the range of price that is highly expensive and the targeted customers that are young

executives or high income people.

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2.5 Brand loyalty

Discussed by (Pin Luarn and Hsin-Hui Lin 2003) “Loyalty helps to reduce marketing

cost, more new customers and great trade leverage”. Loyalty is the ability of customers

to use the same brand of products or service overtime due to the belief that the product is

superior enough for them, the products meets their lifestyle or even the product have

high quality that loyalty arises. To achieve this state of the ladder it needs a very long

process. Despite of achieving it which is complicated the maintaining of the loyal

customer is also difficult in this case. The positive advantage of brand loyalty of

customer is that the loyal customers will want to pay more for a brand because they

perceive some unique value in the brand that no alternative can provide (Arjun Chaudhuri,

Morris B. Holbrook (2001).

2.6 Conceptual framework

Figure 2.2 Current model by Xiao Tong and Jana M. Hawley titled “Measuring customer-based

brand equity: empirical evidence from the sportswear market in China” (2009)

Source: Tong, and Hawley, 2009

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2.6.1 Perceived quality has a significant positive direct effect on brand equity

The perceptions of people over the quality of a product have an influence to the value

that the brand wants to bring up to the customers. According to the journal developed by

Xiao Tong titled “Measuring customer-based brand equity: empirical evidence from the

sportswear market in China” shows that there is a Perceived quality create value to a

brand in several ways: high quality gives consumers a reason on why customer should

buy the product in compare to other substitutes also it helps to differentiate, to be able to

charge a premium price, and to have a strong basic for the brand extension Tong, X. and

Hawley, J.M. (2009). Thus the following relationship is constructed. The consumer

based brand equity will increase when the perception of people with the product quality

tends to increase or to maintain them. When the perception of people about the quality is

good there is a high possibility that they will purchase the product.

With this relations the author proposed on the hypothesis as:

H1: Perceived quality has a significant positive direct effect on brand equity

22

2.6.2 Brand awareness has a significant positive direct effect on brand equity

The author from the original researcher shows that there is a relationship between the

awareness of the brand with the equity that customer set and company build. If a product

has brand attention and size, then the retailer and consumers will think of a particular

brand whenever going for buying if product has huge awareness Nazia Yaseen (2001).

Xiao Tong the original researcher support this relationship with the author of “Managing

brand equity- Aaker” that shows Brand awareness can be a sign of quality and

commitment, letting consumers become familiar with a brand and helping them consider

it at the point of purchase The value of this awareness to people has high impact on the

purchase decision. Consumers rely on their memory to some degree, even when all of

the options are there in front of them. The main advantage of having a brand awareness

in customer’s mind is discuss by Percy, larry,Rositer, John R that is brand awareness

will cause brand recognition to occur. When a brand is recognized at the point of

purchase brand awareness doesn’t need brand recall. This is thus, a key point in the

consideration of brand awareness as a communication objective. With this relations the

author proposed on the hypothesis as:

H2: Brand awareness has a significant positive direct effect on brand equity.

23

2.6.3 Brand association has a significant positive direct effect on brand equity

Based on the original researcher Xiao tong it indicates that CBBE occurs when

consumers have a high level of awareness and hold some strong, favourable, and unique

brand associations in their memories. It is general that most customers associate the

product that they see and would buy with the knowledge they have. This involves the

logo, the tag line and also the advertisement that they were exposed to.

From a research by Jenni Romaniuk with the journal titled “Comparing prompted and

unprompted methods for measuring consumer brand associations” it shows the

importance of brand association which is that information that are encapsulated during

the experience, which are consuming, purchasing and viewing or even the engage in

words of mouth if processed can create a name in the buyer’s memory. The association

is thus the result of this processing. This significant relationship will be further research

in the findings of the current author. With this relations the author proposed on the

hypothesis as:

H3 : Brand association has a significant positive direct effect on brand equity.

24

2.6.4 Brand loyalty has a significant positive direct effect on brand equity

With the loyalty of customer to a product or certain brand this cause an increase in the

equity value of the brand.Thus, the original researcher shows that there is a relationship

between the loyalty of customer to a brand with their equity. With the support of

Bowen,J., & Shoemaker, S(1998) .Loyal customers are less likely to switch to other

competitor in general because of their price; they also make more frequent purchases in

compare to non-loyal customers.

With this relations the author proposed on the hypothesis as:

H4: Brand loyalty has a significant positive direct effect on brand equity.

25

CHAPTER III

RESEARCH METHODOLOGY

This chapter will show the research methods in building a reliability and valid research.

This chapter involves the hypothesis that will be the core findings, the Research

questions, the sample questionnaire and statistical technique that will be used.

3.1 Research Objectives

The research is a replication of a journal titled “Measuring customer-based brand equity:

empirical evidence from the sportswear market in China” by Xiao Tong. The finding is

to show the four main antecedents affecting brand equity and also to conclude on

whether there is a correlation between these factors with equity of a brand.as well to

show on the highest antecedents effecting overall brand equity.

The memory of people exposed to a certain product is usually the ones that affect the

purchase. These memory can be recalled through the perception or believe it has on the

product, the awareness, the association people relate its belief to and also the loyalty

people have on a certain product and their reluctance to change to other substitutes.

26

3.1.1 Research Questions

The researcher will try to answer the following question to complete the findings.

RQ 1 : Does perceived quality have a significant positive direct effect on brand

equity?

RQ 2 : Does brand awareness have a significant positive direct effect on brand

equity?

RQ 3 : Does brand association have a significant positive direct effect on brand

equity?

RQ 4 : Does brand loyalty have a significant positive direct effect on brand equity?

The research will show that whether the four antecedents that are awareness,

perceived quality, association and loyalty cause a positive effect to brand equity.

3.1.3 Scope

The study aims to investigate the measurement effecting customer based brand equity in

jakarta area. . The findings were conducted via offline media using a personal approach

way to complete a quota of at least 150 valid respondents to create a better research. The

research will be done in the scope of Jakarta that are convenient sampling with no limit

in any cases. The respondents are set to be able to participate in this research when they

are able to read and answers the questions in the questionnaire, which are mostly those

that are already able to select their own shampoo brand during purchased. A pre-test will

also be conducted to know the reliability of the questionnaire in concluding the research

motives.

27

The sampling method are convenient sampling that aims to reach a wider market and

also no specific age groups is limited in this research just as long as they are able to

read and understand the questions.

The reason there is no specific age groups is because everyone use shampoo in their

daily life. The author did the research in the Jakarta area in places like minimarket,

supermarket and hypermarts. With target respondents of those that are already able to

make its own decision when purchasing to avoid bias respondents.

3.2 Research Design

The data collection method used in the previous research by the original journal were

Cronbach alpha coefficient, confirmative factor analysis and SEM (structural equation

model) in order for the research to be reliable, valid and effective.The previous findings

used 6 points Likert’s scales ranging from those that are strongly dis-agree(1) to strongly

agree(6). The previous author used a descriptive approach in its findings whereby, the

questionnaire that are not difficult to be understood are given to people that are mostly

young and young adults as the main motive of the research are more likely to be

sportswear(xiao tong, 2009). In the current search the author will aim on the same

measurement as used by the previous researcher but a different targeted customer

(Jakarta) ,different sector market(FMCG shampoo) and different technique. Due to the

limitations in time,skill and knowledge the author used SPSS 16.0 in this research.

The current research will focus on the antecedents of brand equity and the effect of it for

fast moving consumer goods in particular shampoo brands .The current research will

have a scope which is of Jakarta respondents with more convenience sampling of paper

28

based survey which is questionnaire. The questionnaire will be those related to the four

antecedents of overall brand equity with its own beneficial to consumers. The research

have a quantitative approach whereby, the aim is to determine the relationship between

one thing (an independent variable) and another (a dependent or outcome variable) in a

population/sample. Quantitative research designs are either descriptive (subjects

usually measured once) or experimental (subjects measured before and after a

treatment)( http://www.sportsci.org/jour/0001/wghdesign.html).

This research will use a quantitative descriptive approach whereby, A descriptive

study establishes only associations between variables

(http://www.sportsci.org/jour/0001/wghdesign.html).

29

3.2.1 Data collection Method

The data collections are based on those that are the most commonly used that is:

Primary data

Questionnaire

This List of a research or survey questions asked to respondents, and designed to extract

specific information. It serves four basic purposes: to collect the appropriate data, make

data comparable to analysis, minimize bias in processing and asking questions, and to

make questions engaging, interesting and variety(Malhotra,2009). The questionnaire is a

primary data source to investigate the measurement of customer based brand equity in

market where fast moving consumer goods are sold, in particular shampoo.

The list of questions that is presented to the respondents are those that directed based on

the presented to the respondents that directs the content to the purpose of this research.

The questionnaires will those that are presented to people individually by the author to

reduce invalid respondents. The question which is the source of first hand data is

essential to know the opinion of the respondents about the research of how they

perceived brand equity. The particular brands of product that will be tested upon in the

questionnaire are brand of shampoo that is categorized as a low involvement product but

with quite high sensitivity to its users.

30

Secondary Data

Printed literature

These are data that is taken from sources that have already done the research on similar

subject. The current survey for secondary data is through books and journals articles that

are taken as reference to support the model, hypothesis and findings. Most of the books

are taken for definitions that are more likely to be accurate while the journals that are

taken in to consideration as most of them are the ones that have been proven that the

antecedents of the current research have a direct response to brand salience and also the

other variables are supported with these journals to make it more reliable.

The books and journals articles help the author to support its findings on the relations

between the hypotheses. As the model is an adoption and not the adaption of the

previous research.

Web Research

The research based on internet is the one that defines this web research. These are

findings that are related to the current research with the help of the internet that involve

articles from other sources, the figures cause an in-depth information and more detailed

facts.

31

3.2.2 Questionnaire development

The author adapted the questionnaire from a journal by Xiao Tong and M.Hawley.. A

pre- survey was conducted, with the questions be delivered in Bahasa Indonesia as it is

the language understood by the author scope of research. The main reason that the

survey was conducted in Bahasa Indonesia to avoid confusion and created ease to the

respondents.The initial questionnaire which was adopted from the original author was

specifically for sportswear in the scope of china market. The questionnaire was in

mandarin and then translated to English when a pre -research in USA was created. The

current author follows the previous findings that are the author also used the same

questionnaire to evaluate on its analyses. Questionnaire will be constructed with 4

factors that are set into consideration; they are, perceived quality, brand association,

brand awareness and brand loyalty. The Current questionnaire will focus on the fast

moving shampoo brands in Jakarta, to evaluate on the objective of this research.

The questionnaire has some of these sections:

Section 1: The questions will focus on the demographic factors of the respondents

Section 2: These are question that focuses on the shampoo brand association with brand

equity

Section 3: Questions focuses on brand awareness and the result it has on brand equity

Section 4: Questions focuses on perceived quality and the outcome it has on brand

equity.

Section 5: Questions focuses on brand loyalty and its effect to brand equity

32

3.2.3 Scaling technique

The previous author used a 5 points Likert's scale as it is scaling technique to do its

findings. The questionnaire that consists of the 4 antecedents was all using this 5 point

Likert’s scale. The current author would like to eliminate the ‘neutral’ using a 6 points

Liker’s scale as to reduce error and invalid answers.

A likert scale allows respondents to convey their opinion on how they strongly agree or

disagree with a particular statement (Malhotra,2009). The options in the likert scale is

given to not annoy respondents and risking the quality of data such as random error or

data bias. Likerts scaling is also used to uncover the various facets which are often too

complex such as measuring attitudes and values.(johns,2010)

Thus, this Likert’s scale will range from strongly agree, quite agree, agree, disagree and

strongly disagree of respondents about the questions related to the four antecedents

effecting to brand equity of shampoo brands in response to market in Jakarta. The 5

points Likert’s scale will be used in the findings of the entire antecedent with the same

format. The demographic of the section will use a normal nominal approach to ease the

respondents in answering the questions.

33

Figure 3.2 Current model by Xiao Tong and Jana M. Hawley titled “Measuring customer-based

brand equity: empirical evidence from the sportswear market in China” (2009)

Source: Tong, and Hawley, 2009

3.2.4 Hypotheses

The original journal was using SEM to conclude its findings the current author will use

the same antecedents and model but with a different approach that is regressions instead

of the structural equation model.

34

3.2.4.1 Perceived quality have a direct effect to brand equity

The different perception that people have and the belief that they create differs among

one another. These perception that people create thus cause a high perception on the

value of the product placed in their mind.

3.2.4.2 Brand Association is directly affected to brand equity

The association that customer have in mind when a product is exposed either in reality

or advertising, depicts the asset a brand have that is attached to the customer.

3.2.4.3 Brand Awareness is related directly to brand equity

The knowledge people have on the product will cause people to be ware on the existence

and also its function. Thus, this awareness of people has an asset on either positive or

negative effect it has on people.

3.2.4.4 Brand loyalty is related directly to brand equity

The result of the purchase is usually the outcome of these brand loyalty. A positive

effect cause people to want to purchase again in the long term thus, loyalty occurs. This

brand loyalty results in high brand equity.

3.3 Data Analysis Method

The current findings that are in the scope of Jakarta market with a slightly different field

of concentrations that is towards the fast moving consumer good that is shampoo. The

present research will have a different technique than the initial ones. This research will

35

use linear and multiple regression in order to know the significance of the relationships

also the validity and reliability test will be conducted from the pre-test data analysis.

3.3.1 Original research statistical analysis

The previous author Xiao tong (2009) used a reliability and validity to make sure on the

effectiveness of the questionnaire. The test that he used for the reliability check was

cronbach’s alpha coefficients this is to indicate the measurement of internal consistency,

that is, how very related items are in a set of group. The validity check was with the

confirmative factor analysis (CFA) that measures the test of a construct is consistent or

not with the understanding of the actual nature of the construct (Xiao Tong, 2009). The

researcher used a Statistical equation model (SEM), the reason is because the previous

researcher would like to prove the relationships between each antecedents with one

another. They did two stages of measurement using SEM, first is through the reliability

and validity and the second stage shows the relationships between the hypothesis. Both

the stages they used the help of this Semantic equation model to satisfied themselves

with an effective research. The initial research used questionnaire and distributed it

among people in the 6 shopping centres within the range of age between 18 years old to

39 years old. For every respondents that answers the questionnaire a gift was presented

the motive of this gift is to motivate a high response rate.

36

3.3.2 Current research analysis

The current author in the research of measuring brand awareness will be supported with

the descriptive analysis, linear regressions and multiple regressions and SPSS 16.0 as its

statistical tool.The current research will not use SEM as the author does not want to

check the relationships between the antecedents and due to limitations of time,

knowledge, resources and scope of the research.

The author used descriptive testing and Inferential. inferential statistics to try to infer

from the sample data what the population might think. Or, we use inferential statistics to

make judgments of the probability that an observed difference between groups is a

dependable one or one that might have happened by chance in this

study(http://www.socialresearchmethods.net/kb/statinf.phpwill). The inferential testing

will be used by the author are reliability which is Cronbach’s alpha,validity

Confirmatory Factor Analysis and Multiple regressions,in addition a cross tabulation

was also calculated to know the relationship between the demographic and the

dependent variables.while descriptive statistics are Descriptive statistics are used to

describe the basic features of the data in a study. They provide simple summaries about

the sample and the measures. Together with simple graphics analysis, they form the

basis of virtually every quantitative analysis of

data(http://www.socialresearchmethods.net/kb/statdesc.php) the author used this testing

to check the frequency distribution. The age groups for this research are a convenient

sampling with no limitations in age to participate in this research.

37

3.3.3 Reliability testing

In this research the author will use a Cronbach’s alpha coefficient research in order to

identify on whether the questionnaire create a consistency, stable and reliable data for

the findings. This Cronbach’s alpha in general should achieve a high degree of greater

than 0.6 to have a satisfactory results.(Malhotra,2009)

3.3.4 Validity testing

This research will use testing on the validity of the construct of the questionnaire

through the use of Pearson correlations method The Pearson correlation method is

normally used in finding the correlations between at least two variables. The relations

are said to have a good construct and criteria when significant level is lesser than 0/05.

The previous researcher used CFA which is confirmatory factor analysis which is no

necessary if the questionnaire by the previous author is already grouped together based

on the antecedents. (Malhotra, 2009)

3.3.5 Linear regressions ( Multiple Regression)

This method will be used by the author to know the relationships on the dependent

variable against its independent variables are linear and multiple regressions.

The most common method use by researcher in knowing the relationships of variables

are through this technique. The linear regression is used to test on the relationship of

each dependent variable with the independent variable, while the multiple regressions

are used to test on the relationships of all the antecedents towards the independent

variable to know the ones with the highest relationships. The result is valid when the

significant level is less than 0.5.(Malhotra,2009)

38

3.3.7 Sampling Method

Based on the research by Xiao Tong on the journal titled “Measuring customer-based

brand equity: empirical evidence from the sportswear market in China” it uses the

market of china in order to do its findingswhile the current researchis different on the

findings in the market of Jakarta. Thus, the current findings which are also concerned in

the Fast moving consumer products which are shampoo will have a non-probability

convenience sampling method .The research was done in near the retail outlet on

shopping for these products also random people that uses shampoo in their daily life.

These involve Carrefour, lotte mart and alfamidi also random places where people use

shampoo.

Considering the limited time, resources and skill this research use a convenient sampling

and have also done some adaptation to suit the purpose of this study in the local

Indonesian background. For e.g.- The questions asked were all in Bahasa Indonesian

since the respondents were

39

Table 3.2 Differences between original research and current research

No. Description Original Research Current Research Remarks

1 Title Measuring customer-

based brand equity:

empirical evidence

from the sportswear

market in China

The impact of association ,

awareness, perceived

quality and brand loyalty

in brand equity : The study

of Shampoo brand in

Jakarta market

Changes are created based

on the the different sector

of findings and the area of

research.

2 Number of

Respondent

306 Respondents 200 Respondents The research may take a

lot more time if the

respondents are 306

people

3 Language Mandarin and English Indonesia As my respondents are

more likely to be those

that are Indonesian, thus

the language should be the

ones they understand

4 Scale 5 point Likert's scale 6 points Likert’s scale No neutral will be in the

questionnaire so that

author choose sides

between yes or no.

5 Statistical

Tools

Used Statistical equation

method

Using SPSS 16.0 To be able to get the result

on time as per the

projected dates.

6 Sampling Random Sampling convenience Sampling Get random convenient

samples that use shampoo

40

and those that are

available in the retail

market

7 Data

Collection

Retail outlet survey Personal Social Network

Web survey

To have high number of

respondents with limited

time.

41

Table 3.3 operational of variable measures

Variables Questions

Perceived Quality

Aaker (1991) and Pappu et al

I trust the quality from product x

Products from X would be of very good

quality

Products from X offer excellent features

Brand awareness

Aaker (1991) and Yoo et al. (2000)

Some characteristics of X come to my

mind quickly

I can recognize X quickly among other

competing brands

I am familiar with X brand

Brand Association

Aaker (1996), Keller (1993), and Pappu

et al. (2005)

X has very unique brand image, compared

to competing brands

I respect and admire people who wear X

I like the brand image of X

I like and trust the company, which makes

X products

Brand Loyalty

Yoo et al. (2000) and Pappu et al.

(2005)

I consider myself to be loyal to X

When buying athletic shoes, X would be

my first choice

I will keep on buying X as long as it

provides me satisfied products

I am still willing to buy X even if its price

is a little higher than that of its competitors

42

I would love to recommend X to my

friends

Overall brand equity

Yoo et al. (2000)

Even if another brand has the same

features as X, I would prefer to buy X

If another brand is not different from X in

any way, it seems smarter to purchase

X is more than a product to me

Source - Xiao Tong and Jana M. Hawley

43

CHAPTER IV

RESULTS AND FINDINGS

In this chapter the author will explain about the research findings of the measurement of

customer based brand equity for fast moving consumer goods in Jakarta .The

measurement was specifically Shampoo, a fast moving consumer goods. The motive of

this research is to test on the antecedents of brand equity that is highly affecting the

value of the brand for these products. The research took 158 respondents to test on the

hypothesis and also to provide information on the variables in the research.

In addition this chapter will also provide results of the pre test consisting of 30

respondents. This test is initially done to give knowledge on the reliability and validity

of the questionnaire and data. The questionnaire was distributed in early May for the

pretest while the actual test was distributed on the 15th of May through offline personal

approach. The respondents of the Questionnaire are random people that are seen in the

scope of universities students, supermarket, hyper marts and many more as everyone use

shampoo in their daily life. The results requirements e.g-The significant level have to be

lesser than 0.05 were taken into consideration(Malhotra,2009).

In this research the author test for validity used confirmatory Factor Analysis and

reliability using Cronbach Alpha. Furthermore the statistical analysis for this research

multiple regression are used to know the relation of each variables of the dependent and

the independent variables. The test use cross tabulation to know the effect of certain

demographic variable with brand equity.

44

4.1 Exploratory Study

As the research is about shampoo brands which are in cluttered, thus the author attempt

on doing an exploratory study on the 5 most common used shampoo in Jakarta. The

respondents that consist of 30 people were sent a message through their Blackberry

Messenger on the most used or purchased shampoo brand that they use. The results

show as follow:

Figure 4.1 Exploratory Research

The result shows that the market have a high demand for sunsilk,Dove,Clear and Head

shoulder followed with pantene attaining the last rank. These brands of shampoo were

the list of options that is attached in the questionnaire.

Sunsilk20%

Pantene10%

Clear17%

Head & Shoulders

13%

Dove17%

Loreal6%

Others17%

Sample survey : Brands of Shampoo preffered (Percentage)

Clear17%

Sunsilk 20%

Others17%

Dove 17%

45

4.2 Pre test Analysis

The researcher, did a 30 respondents pre survey to analyze on the validity and reliability

of the variables in the questionnaire also the data set. The calculation is also used to test

on the research questions about the antecedents effecting Brand equity. The factors that

are being tested are as follow: Brand Awareness, Brand Association , Brand Loyalty,

Perceived quality and Brand equity.

4.2.1 Reliability

The author did a reliability test in order to research on whether the questions that are

addressed to the respondents about the factors or antecedents from the research model

are consistent or not. The result of Cronbach Alpha > 0.6 is valid for the research to

continue its process(Malhotra,2006) . The result of the reliability during pre test is as

follow:

Table 4.1 Reliability test (Pre-Test)

Variable Cronbach Alpha N of items Reliability

Perceived Quality .803 3 > 0.6 Reliable

Brand Awareness .856 3 > 0.6 Reliable

Brand Association .896 4 > 0.6 Reliable

Brand Loyalty .982 5 > 0.6 Reliable

Brand Equity .835 3 > 0.6 Reliable

46

Table 4.1 shows the analysis of data done for reliability testing, all the data shows higher

than 0.6 value which is higher than the minimum level that confirmed that the data is

reliable. This shows that the factors have high internal consistency

47

4.2.1 Validity

The researcher did a validity test with the help Confirmatory Factor Analysis. This

statistical calculation is used to analyze on the questions of the questionnaire to be

proven as valid in each set of variables. The researcher used Confirmatory factor

analysis that analyses the KMO which is a measurement for adequacy, it is an index

used to examine the appropriateness of factor analysis. High values (between 0.5-1)

indicate factor analysis is appropriate. Value below 0.5 imply that the factor analysis

may not be appropriate (Malhotra, 2009)

48

Table 4.2 Confirmatory Factor Analysis

Table 4.2.1 Perceived Quality

KMO and Bartlett's Test

Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .692

Bartlett's Test of Sphericity Approx. Chi-Square 27.956

df 3

Sig. .000

Communalities

Initial Extraction

PQ1 1.000 .723

PQ2 1.000 .659

PQ3 1.000 .787

Extraction Method: Principal

Component Analysis.

Total Variance Explained

Compon

ent

Initial Eigenvalues Extraction Sums of Squared Loadings

Total % of Variance Cumulative % Total % of Variance Cumulative %

1 2.169 72.287 72.287 2.169 72.287 72.287

2 .505 16.841 89.129

3 .326 10.871 100.000

Extraction Method: Principal Component Analysis.

49

Component Matrixa

Component

1

PQ1 .850

PQ2 .812

PQ3 .887

Extraction Method:

Principal Component

Analysis.

a. 1 components

extracted.

The data shows the result of validity calculations using a confirmatory factor analysis

with a result that is relatively valid. This form of validity calculations is said to be valid

when the KMO have achieved a greater than 0.5 with the variance percentage greater

than 60% and a component Matrix greater than 0.5. For the set of questions about

perceived quality the validity is thus confirmed to be valid. (Malhotra,2009)

50

Table 4.2.2 Brand Awareness




df 3

Sig. .000

Communalities

Initial Extraction

BAW1 1.000 .811

BAW2 1.000 .840

BAW3 1.000 .730


Component Analysis.


Compon

ent



1 2.380 79.339 79.339 2.380 79.339 79.339

2 .393 13.110 92.449

3 .227 7.551 100.000


51

Component Matrixa

Component

1

BAW1 .900

BAW2 .916

BAW3 .854

Extraction Method:

Principal Component

Analysis.

a. 1 components

extracted.

The Brand awareness that is the one of the factors influencing Brand Equity, statistical

analysis was calculated and the tables above shows the validity of the particular set of

questions and data of Brand Awareness for shampoo brands in the market of Jakarta.

The awareness shows a preferable result since it meets the requirements of a good CFA

which is its Eigen value is more than 60% with the component matrix and

communalities which is higher than 0.5.

52

Table 4.2.3 Brand Association




df 6

Sig. .000

Communalities

Initial Extraction

BAS1 1.000 .603

BAS2 1.000 .890

BAS3 1.000 .761

BAS4 1.000 .805


Component Analysis.


Compon

ent



1 3.059 76.471 76.471 3.059 76.471 76.471

2 .523 13.081 89.552

3 .325 8.132 97.684

4 .093 2.316 100.000


53

Component Matrixa

Component

1

BAS1 .776

BAS2 .943

BAS3 .872

BAS4 .897

Extraction Method:

Principal Component

Analysis.

a. 1 components

extracted.

The next set of questions that are being checked on its validity were Brand Assosiation.

These questions are also considered valid based on the criteria of the validity

requirements for the calculation by Confirmatory Factor Analysis. This association also

shows a good results with looking at its component matrix, eigen value, communalities

and significance.

54

Table 4.2.4 Brand Loyalty




df 10

Sig. .000

Communalities

Initial Extraction

BSL1 1.000 .432

BSL2 1.000 .850

BSL3 1.000 .813

BSL4 1.000 .885

BSL5 1.000 .813


Component Analysis.

55


Compo

nent



1 3.792 75.846 75.846 3.792 75.846 75.846

2 .702 14.034 89.880

3 .245 4.903 94.783

4 .144 2.871 97.654

5 .117 2.346 100.000


Component Matrixa

Component

1

BSL1 .657

BSL2 .922

BSL3 .901

BSL4 .941

BSL5 .901

The calculations were conducted to give information about Brand Loyalty. A set of 5

questions about the influence of loyalty to brand equity exist in the questionnaire and to

check on the validity of the 5 questions for the research purpose was checked through

CFA. The results was confirmed to be valid.

56

Table 4.2.5 Brand equity




Df 3

Sig. .000

Communalities

Initial Extraction

BE1 1.000 .751

BE2 1.000 .755

BE3 1.000 .751


Component Analysis.


Compon

ent



1 2.257 75.234 75.234 2.257 75.234 75.234

2 .375 12.500 87.734

3 .368 12.266 100.000


57

Component Matrixa

Component

1

BE1 .867

BE2 .869

BE3 .867

Extraction Method:

Principal Component

Analysis.

a. 1 components

extracted.

The cumulative factor analysis for the factor of this dependent variable Brand Equity

shows a valid data based on the pre-test that was conducted by the author before the real

test was held. The result also shows that there is a validity in the set of questions

construct that was build by the author.

58

4.3 Research Analysis

4.3.1 Correlations

Correlation using Pearson correlation is a simple but powerful way to look at the linear

relationship between two Matrix variables (Malhotra, 2009). Pearson correlation is

calculated with having a significant level lower than 0.05. The pearson correlation

shows the relationshipsof the variables.

59

Table 4.3 Pearson correlation

Table 4.3.1 Perceived Quality Correlations

PQ1 PQ2 PQ3

PQ1 Pearson Correlation 1 .576** .793**

Sig. (2-tailed) .000 .000

N 158 158 158

PQ2 Pearson Correlation .576** 1 .762**

Sig. (2-tailed) .000 .000

N 158 158 158

PQ3 Pearson Correlation .793** .762** 1

Sig. (2-tailed) .000 .000

N 158 158 158

**. Correlation is significant at the 0.01 level (2-tailed).

The perceived quality from table 4.3.1 shows the relationship between each of the

questionnaire variables . The result shows that the set of data using the pearson

correlation also shows a valid results that is its significance is lesser than 0.05.

(Malhotra,2009)

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Table 4.3.2 Brand Awareness

Correlations

BAW1 BAW2 BAW3

BAW1 Pearson Correlation 1 .668** .778**

Sig. (2-tailed) .000 .000

N 158 158 158

BAW2 Pearson Correlation .668** 1 .885**

Sig. (2-tailed) .000 .000

N 158 158 158

BAW3 Pearson Correlation .778** .885** 1

Sig. (2-tailed) .000 .000

N 158 158 158


Figure 4.3.2, data shows the set of questions that are in the group of questions of brand

awareness. The relations between different questions are checked and set to be related.

Through the requirements of related calculation, figure 4.3.2 is set to have relations

between one questions and another. Whereby, the significance level is lesser than

0.05.(Malhotra,2009)

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Table 4.3.3 Brand Association

Correlations

BAS1 BAS2 BAS3 BAS4

BAS1 Pearson Correlation 1 .893** .870** .771**

Sig. (2-tailed) .000 .000 .000

N 158 158 158 158

BAS2 Pearson Correlation .893** 1 .920** .842**

Sig. (2-tailed) .000 .000 .000

N 158 158 158 158

BAS3 Pearson Correlation .870** .920** 1 .820**

Sig. (2-tailed) .000 .000 .000

N 158 158 158 158

BAS4 Pearson Correlation .771** .842** .820** 1

Sig. (2-tailed) .000 .000 .000

N 158 158 158 158


The association which is one of the antecedents that is calculated to check on the

relationship between each of the questions related to Brand Association. The relations

between one questions related with association of the brand are tested using this Pearson

correlation to know the content are reliable enough or not. Thus, the calculations show

that there is significant relationship between one question to another in the category of

association. This is concluded through the significant level of each of the questions

variable is less than 0.05.

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Table 4.3.4 Brand loyalty

Correlations

BSL1 BSL2 BSL3 BSL4 BSL5

BSL1 Pearson Correlation 1 .668** .778** .782** .761**

Sig. (2-tailed) .000 .000 .000 .000

N 158 158 158 158 158

BSL2 Pearson Correlation .668** 1 .885** .520** .494**

Sig. (2-tailed) .000 .000 .000 .000

N 158 158 158 158 158

BSL3 Pearson Correlation .778** .885** 1 .693** .626**

Sig. (2-tailed) .000 .000 .000 .000

N 158 158 158 158 158

BSL4 Pearson Correlation .782** .520** .693** 1 .920**

Sig. (2-tailed) .000 .000 .000 .000

N 158 158 158 158 158

BSL5 Pearson Correlation .761** .494** .626** .920** 1

Sig. (2-tailed) .000 .000 .000 .000

N 158 158 158 158 158


Figure 4.3.4 shows the result for the brand loyalty in calculation for the relationship

between each question in the category of the variable, loyalty. The result is shown to be

related whereby each questions were calculated using SPSS 16.00 with the method

Bivariate Pearson Correlations, the significant level is thus lesser than

0.05(Malhotra,2009), that shows there is a relation between one question with another.

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Table 4.3.5 Brand equity

Correlations

BE1 BE2 BE3

BE1 Pearson Correlation 1 .793** .784**

Sig. (2-tailed) .000 .000

N 158 158 158

BE2 Pearson Correlation .793** 1 .816**

Sig. (2-tailed) .000 .000

N 158 158 158

BE3 Pearson Correlation .784** .816** 1

Sig. (2-tailed) .000 .000

N 158 158 158


Table 4.3.5 shows that there is a high correlation from the calculations of Pearson

correlation using SPSS 16.00. The result for this brand equity category shows, that there

is a higher level of relationship between one question of the variable, brand equity with

another. This is shown from the relationship significant level which is lesser than 0.05

(Malhotra,2009)

64

4.3.2 Regression

Regression used in extent of correlation, enabling the author to examine the relationship

between one variable and several others. (Malhotra, 2009).In this case the author use

simple linear regression to check the relationship between the factors effecting brand

equity and multiple regression to know the strength of association between the 4 four

factors with the dependent variable which is brand equity.

Since the data set in the questionnaire are seen to be valid and reliable the next test that

was calculated is to find the relationship between variable of the dependent and

independent variables. With the help of SPSS, the regression is calculated. In regression

the r square is calculated to know how fit the model is. Both the simple linear and

multiple regressions gives the result of R square. In this statistical calculation, the

relationship is valid when the r square is greater than 0.5 as to know the variances of the

dependent variable to that of the independent variable (Malhotra, 2009). While the

significant value should be less than 0.05 to know the various hypothesis that are

accepted in the study and the ones that are rejected (Malhotra,2006). The (B) in this

statistical calculations is used to know the negative or positive relation between the

independent and dependent variable. In this research the author used both simple linear

and multiple regressions to evaluate the results and test the research questions.

65

4.3.3 Multiple Regressions

This type of regressions is to know the different value of relationships on many

independent variables affecting a single dependent variable. This research found out the

factors that effects most to brand equity. In both simple linear and multiple regressions

the significant value and the R squared are analyzed.

Table 4.4 Regression output

Perceived quality, Brand Awareness, Brand Association and Brand loyalty to Brand Equity

Model Summary

Model R R Square

Adjusted R

Square

Std. Error of the

Estimate

1 .879a .773 .767 .43711

a. Predictors: (Constant), MBSL, MPQ, MBAS, MBAW

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Coefficientsa

Model

Unstandardized Coefficients

Standardized

Coefficients

T Sig. B Std. Error Beta

1 (Constant) .635 .168 3.777 .000

MPQ .275 .078 .284 3.523 .001

MBAW -.530 .310 -.609 -1.712 .089

MBAS -.328 .257 -.349 -1.273 .205

MBSL 1.458 .572 1.521 2.548 .012

a. Dependent Variable: MBE

67

Y Brand Equity = .635 + .275 x MPQ - .530 x MBAW - . 328 x MBAS + 1.458 x MBSL

Variable interpretation

From the model of the research the author did 1 multiple regression which is the analysis

of the four antecedents of brand equity that is Perceived Quality, Brand Awareness,

Brand Association and Brand loyalty to test on which of the antecedent effect the most

for brand equity in the case of shampoo products. The analysis were done for Y Brand

Equity.

Y (Brand Equity)

In this calculation the brand equity is calculated in multiple regression using SPSS to

analyze the four antecedents effecting brand equity on which of those has the direct

positive effect and the highest effect on the value of the brand for fast moving consumer

goods which is Shampoo. From table 4.4 number (iv) the calculation shows that the R

Squared has achieved higher than its minimum which is 0.773 and the B of the

regression shows the variables or factors that affect positively and negatively to the

dependent variable which is Brand Equity. In this case the author has two variables

which are minus and have a significantly negative effect for the dependent variable

which is brand equity. The variables are Brand Awareness and Brand Association that

are negatively related to brand equity specifically for shampoo brands for which the

purpose of the research was conducted for. The ones which have positive relations to

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brand equity are perceived quality and brand loyalty. With this calculation the

significant value also shows the no linear relationship and accepted hypothesis ,in this

case the accepted hypothesis that have a significant value lesser than 0.05 are brand

loyalty and perceived quality having brand loyalty to achieve a better relation to brand

equity in compare to the other factors.

The regression formula is:

Y Brand Equity = .635 + .275 x MPQ - .530 x MBAW - . 328 x MBAS + 1.458 x

MBSL

This means when perceived quality increase by 1 also when there is increase in brand

loyalty by 1 there is also there is a highly increase in brand equity by .275 and 1.458

having all the other variables stay constant. While when there is an increase in brand

awareness by 1 and brand association 1 there will have a reduce in brand equity by .328

and .530.

H1: Perceived quality have a direct effect to brand equity

H2 Brand Association is directly affected to brand equity

H3: Brand Awareness is related directly to brand equity

H4: Brand loyalty is related directly to brand equity

From the 4 hypothesis there are two significant values that are accepted in this statistical

calculation through multiple regressions.

69

H1 : The perceived quality that is the perception of customers about the quality of the

brand matters a lot for brand equity. From the calculations is shown that there has been a

positive direct effect for the independent variable perceived quality with the dependent

variable brand equity. The B that shows a positive effect and a significant level that is

lower than 0.05 shows that the hypothesis is accepted. Whereby, perceived quality have

a direct positive relationship to brand equity.

H2: The Brand Awareness that is the awareness of the brand by the customers are less

likely affecting the brand equity of the shampoo products as table 4.4 (iv) shows that the

awareness of the brand brings a negative relation to the value of brand in the case of

shampoo in Jakarta market with a respondents limited to 158 people. The no linear

relationship between the awareness of the brand with the over all equity of shampoo is

because usually in most shampoo advertising the brand is exposed everywhere in the

supermarket,in billboards. It only shows on the existence of the brand but the quality

that it promises is sometimes left behind. Which are in this research shown that the

quality perceived by the people are very important. Thus awareness need to be

completed with the persuaded and informed quality that it promises not only branding

them.

70

H3: Brand associations have the same results to that of brand awareness as they have a

negative answer in its B. The significant of brand association is also higher than 0.05

thus, there is no linear relationship from the result of the multiple regression calculation

that was calculated in table 4.4. The brand association has less relationship with over all

brand equity as the associations of people need to be good for the people to purchase

them. Thus, a bad association or a difficult ones can be very disturbing and difficult to

recall when purchase s to be made and to create value of the brand. Also brand

association need to concentrate the use of quality as an association strategy to be made

loyal by the customer. For e.g – an advertisement showing a clinically proven shampoo

that can cure dandruffs and hair fall can be one of the way to be recalled and equity to be

increased.

H6: brand loyalty acquiring the highest result in the relationship using the calculation of

multiple regression have the highest effect in building brand equity. With the highest B

the relationship of brand loyalty to brand equity is positive and also it is that the change

in brand loyalty will cause a high change in brand equity.

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Table 4.5 Multiple Regression test results

Hypothesis B R Squared Partial Sig Results

H1 .275 .773 .001 Accepted

H2 -.530 .773 .089 Rejected

H3 -.328 .773 .205 Rejected

H4 1.458 .773 .012 Accepted

4.4 Demographic Information of Respondents

4.4.1 Survey results

A total of 200 questionnaires were distributed with a valid 158 of respondents with

either an incomplete questions, answered or even the respondents that does not take long

when shampoos are purchased. The research was distributed through personal approach

which is mostly random people that the author meets wherever possible. Most of the

respondents that are taken in to the validity of the set of data were those that are more

likely to be the respondents that take quiet sometimes when purchase o shampoo is

intended. The reason for this is because the factors that are perceived quality, brand

awareness, brand association and brand loyalty can only be identified when a person is

“picky when choosing the shampoo product. Thus, the respondents are randomly

selected with those that are concern with the shampoo that they are using.

72

Figure 4.2 Gender

Figure 4.2 shows the number of different gender that participated in this research. There

is a total of 158 respondents, with 68 male and 90 females with a percentage of 43% and

57 %. The following pie chart is just information for the researcher to know on the

number of respondents of male and female took part in this research

Male43%

Female57%

Gender

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Figure 4.3 Age

The respondents of the research are mostly those that range between 26 and 36 years

old,mostly those respondents that the author gave the questionnaire when passing by on

a supermarket or many other places where shampoos are sold,and the rest are mostly

university students and also colleagues.

<151% 16‐25

8%

>4729%

37‐4731%

26‐3631%

Age

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Figure 4.4 Education

Figure 4.4 shows the different education of the research respondents that participated in

the research that has been conducted. The calculation of the degree of study is just to

give information for the author.

middle school2%

high school11%

Diploma20%

Bachelors24%

post graduates25%

others18%

Education

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Figure 4.5 Occupation

The data shows the respondents that were involved in the research are mostly those that

have occupations of either having their own business or already working in a company.

university students

5%

employee29%

self employed36%

others30%

Occupation

F

p

t

Figure 46

participated

than 1.000.0

<

shows the

in the resear

001 until 2.00

<= Rp.1.000.000

Figure

monthly ex

rch. Most of

00.000 a mo

Rp.1.000.001-5

e 4.6 Month

xpenses of

f them range

onth

5.000.000 Rp. 5

hly expense

most of th

es from those

5.000.001-10.000.000

he author r

e that have a

>10.000.000

respondents

an income gr

0

76

that

reater

77

Figure 4.8 Brands

The researcher found out that the brands that the respondents of Jakarta market to which

the personal approach were conducted have the above data. The brands that are in

demand are more likely to be Clear and Head & Shoulders

Sunsilk4%

Pantene14%

Clear32%

Head and Shoulder25%

Dove21%

Lainya4%

Used Brands

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4.5 Cross Tabulation

Table 4.5.1 Gender with Brand equity

Case Processing Summary

Cases

Valid Missing Total

N Percent N Percent N Percent

Gender * GroupBE 158 100.0% 0 .0% 158 100.0%

Gender * GroupBE Crosstabulation

Count

GroupBE

Total High low

Gender male 71 7 78

female 71 9 80

Total 142 16 158

79

Chi-Square Tests

Value df

Asymp. Sig. (2-

sided)

Exact Sig. (2-

sided)

Exact Sig. (1-

sided)

Pearson Chi-Square .225a 1 .635

Continuity Correctionb .044 1 .833

Likelihood Ratio .225 1 .635

Fisher's Exact Test .793 .417

N of Valid Casesb 158

a. 0 cells (.0%) have expected count less than 5. The minimum expected count is 7.90.

b. Computed only for a 2x2 table

The calculation above shows the effect of gender with brand equity. That is to analyze

whether there is a different variation of differebetween differences in gender that cause

a significant change to brand equity of shampoo products. Through the group of genders

that has been identify and analyze, the statistical calculation shows that the number of

male and female involved and concern about brand equity are equal, that is 71. The

hypothesis in this research is that:

H0: There is no homogeneous relationship between gender and brand equity

H1: There is a homogeneous relationship between gender and brand equity

From the measurement of cross tabulation that was done with the help of SPSS,the

calculation is concluded to accept Ho. Since the significant level is greater than 0.05. In

80

other words, there is no effect in the relationship of different genders with brand equity

for fast moving consumer goods which is shampoo.

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CHAPTER V

CONCLUSION AND RECOMMENDATION

In this chapter the author will elaborate more on the findings to add up on the

explanation in the previous chapter. This chapter consists of the summary of the

findings, Managerial Implications, Limitations of the current research and also

recommendation for future researcher

5.1 Conclusion

The research focused on the factors of Brand Awareness, Brand Association, Perceived

quality and Brand loyalty on the overall Brand Equity. The brand equity measured in

this research is for fast moving consumer goods, specifically shampoo brands within the

Jakarta area. The reason the author uses shampoo brands to focus in this research is

because shampoo is a fast moving consumer products category which is usually a low

involvement product to be purchased but it has a high influence on the appearance of

people

The main motivation of this research is to give information to the author on which of the

following factors: Perceived Quality, Brand Awareness, Brand Association and Brand

Loyalty has greater affect to building brand equity specifically for shampoo brands in

Jakarta area. The result of the research shows that Perceived Quality and Brand loyalty

affects the most to the Overall BE, compared to the other two factors in shampoo

products,that is brand awareness and brand association. The result of the cross tabulation

also

82

shows that neither gender nor the level of education has any affect to the brand equity of

shampoo product.

The research as informed earlier have 4 research questions that would be answered when

the research is conducted by the author. Following are the analysis and brief answers to

the research being conducted:

RQ 1. Does perceived quality has a significant positive direct effect on brand

equity?

H1The following hypothesis was calculated using a multiple regression. The result

shows that there is a relationship between perceived quality with brand equity or most

commonly known as the value of the brand. Perception of quality in brands like

shampoo is highly needed when continuous purchasing is focused. These shampoo

brands especially those which are newly introduced will need a better perception of

quality than existing brands of shampoo. Perception is normally the thoughts for things

that have never been used before. The perception of quality is thus identified as the first

insight a person have over the brand when is first time shown to them. The analysis of

this research also shows that the perception of quality cause a high influence to brand

equity rather than brand awareness and brand association.

83

RQ 2: Does brand awareness has a significant positive direct effect on brand

equity?

H2- An analysis of the calculations shows that there are effects for brand awareness with

brand equity. The awareness of people over shampoo brand causes them to be able to

analyze the brand further. Awareness of the brand acts as a bridge for the parent brand

that a positive awareness of customer over the brand will cause positive brand equity.

The awareness of brands are mostly those which can be through their names, packaging,

taglines, the advertisements they show and many other causes of awareness to be built

are used now a days to make people aware of the existence of the brand .When the

author put together the brand awareness in comparison to the factors effecting brand

equity, it is unlikely to cause a positive relationship with brand equity.

RQ 3: Does brand association has a significant positive direct effect on brand

equity?

H3- Most of the consumers analyze a brand of shampoo through the association that

they create in their mind to be able to remember the characteristics of brand. Through

the calculation by SPSS the research shows that there is a relationship between

association and Brand Equity using the simple linear regression that there is an affect of

association for the building up of value in a brand. But these associations of brand are

less likely to be effective if compared with Perceived Quality, Brand Awareness, Brand

Association and Brand Loyalty. An association which is used to indicate a brand are

mostly the tag line, the advertisements, the colour it represents and also the packaging.

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By this type of branding people may associate it with specially the product itself that

makes them easy to purchase and remember on its characteristics.

RQ 4 : Does brand loyalty has a significant positive direct effect on brand equity?

H4 – The result from the SPSS calculation shows that Brand loyalty is the most

powerful factor in building brand equity. As consumers become loyal to the brand, they

will be less likely to change their perception about any information available in their

surroundings. A loyal consumer of shampoo will be less likely to change their shampoo

brands. The analysis of the research shows that loyalty achieves the highest influencing

factors causing brand equity. This shows that the loyalty of the brand over shampoo

products cause a high value to be placed in the brand.

85

5.2 Managerial Implications:

(A) Perceived Quality

• For marketers to better understand that the perception of quality is the

next best factors that can be included when a company seeks to improve

their brand equity.

• The perception of quality such as the ingredients that is used and also the

approval clinic that support the promising message of these shampoo

products are effective in building brand equity for consumers.

• The research shows that the quality that customer perceived about a

brand will be able to create the value to increase deliberately. This can be

a strategy for marketer to focus its shampoo brand in developing a good

perception in the quality of the shampoo brand.

• To increase perception in quality marketer can concerned on the

communication like “the shampoo is clinically proven by an adequate

research in America as anti dandruff’

86

(B) Brand Awareness

• From the research, it shows that the advertising should focus on the

quality of the shampoo that it delivers to the customer. Not only

concentrating on exposing the brand solely.

• When awareness is implemented by the marketer there is a tendency that

this might be successful for branding of the product to be remembered

when purchase is intended. Mostly awareness is mainly used for newly

introduced shampoo to be known for its existence in the eye of the

customer.

• Awareness can exist when the products is exposed continuously in

people’s mind for e.g.- Give free samples or participate during events

• Brand awareness can be developed through a continuous advertisement

and exposure to customer For e.g.- the advertisement shows the quality of

the product to be able to reduce hair fall and dandruff that was given a

testimonial from a person. This awareness in people testimonial can be

remembered on decision making during purchase.

87

(C) Brand Association

• This is used by people as an indicator to remember a product. Marketer

use this make people remember when purchase is intended

• When a product associated is perceived bad by the people, then this

would cause negative result to the whole product development.

• An association is regarded by the product that the marketer presents to

the consumer. Thus, when association is to be implemented to gain brand

equity a careful strategy in brand association is to be made.

• A good association have to be built which can be through, creative tag

lines, green packaging and doing a cause relationship marketing.

• Association may be having less relation to brand equity but it helps to

improve company brand image, thus association must be positive to

create positive responses.

88

(D) Brand Loyalty

• Based on the findings through the calculations using spss,it can give

information for marketer that loyalty of the brand cause a high effect on

the overall brand equity.

• Being loyal to a shampoo brand will increase the overall BE and more

importantly generate repeat purchase in confirmed.

• Marketer thus, should have a high goal on achieving brand loyalty for

shampoo to gain value for the brand.

• Brand loyalty exist when there are satisfaction derived by the customer.

Customer satisfaction can be fulfilled through continuously developing

and updating the product or service as per the need of the customers and

also having to know the culture of the customer and the type of

promotions they focus.

• For e.g. different geographic area have different response to ‘discounted

products’’ thus, Company especially those of shampoo products should

know which promotions type to focus. Whether in terms of discount,

attract9ve packaging, bundling or many other of its type.

89

5.3 Limitations of the research

Since the research was conducted within 4 months period, thus allow the author to only

distribute to 200 respondents, in which 158 were valid respondents, therefore the level

of accuracy of the research only represent a small portion of the total population of

Indonesia. Due to this time constraints further research is un available to be generated.

Like, comparing between genders on which of them are brand sensitive when

purchasing a shampoo.

Due to time constraint the research was conducted only in Jakarta area. As this research

is a replication of the previous one, the variables effecting brand equity only consists of

4 factors. The factors or antecedents effecting brand equity are Perceived Quality, Brand

Awareness, Brand Association, Brand loyalty. The findings were limited to these factors

whereby there might be many potential factors effecting brand equity, which are, price,

market behaviour and brand origin. In other words the independent factors are less in

number to influence the dependent variable which is brand equity.

90

5.4 Recommendations for future research

For future research there are still certain points that the author was not able to cover.

- The changes of shampoo brands are increasing deliberately almost every day,

thus the research have to be updated accordingly.

- With more sufficient factors effecting Brand Equity a higher and deeper level of

accuracy can be resulted.

- As the limited variables caused un in adequate data, may be in the future

research, the researcher can build up more variables to make a sufficient and

reliable data.

- In the future the author can further compare the strategy between one shampoo

brands with another. That uses almost the same strategy to increase brand equity

and analyze which of them are more successful than another.

- For the next research more respondents can be used to support a higher and

deeper accuracy with greater level of effectiveness . So that the data is useful for

the readers, researchers and marketer of shampoo brands.

- Future researchers should consider the relationship between education and brand

equity using cross tabulation in order to know which of the segment in education

has higher effects to brand equity in overall.

91

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on brand profitability and purchase intention. Journal of contemporary research in

business,3(8),833

94

APPENDIX

Appendix A: Questionnairre

BINUS UNIVERSITY

BINUS INTERNATIONAL

Kepada para responden yang terhormat,

Saya adalah murid marketing dari BINUS University International dan sebagai

persyaratan untuk menyelesaikan kuliah saya di bidang marketing, saya sedang menulis

sebuah skripsi tentatng “The measurement of customer based brand equity for fast

moving consumer goods in Jakarta.”

Saya mohon waktu anda untuk mengisi pertanyaan berikut unutk memudahkan saya

untuk mengumpulkan data data yang relevan untuk skripsi saya. Data data yang

diberikan kepada saya adalah untuk akademis dan kerahasiaan informasi akan dijamin

oleh saya.Terimak kasih atas waktu dan perhatian anda

Hormat Saya,

Chandni Nanwani

95

1. Jenis Kelamin

a.Laki-Laki

b.Perempuan

2. Usia

a. < 15

b.15-25 tahun

c.26-36 tahun

d.37-47 tahun

e.> 47 tahun

3.Pekerjaan

a.Pelajar

b.Mahasiswa/i

c.Karyawan

d.Wiraswata

e.Lainnya (Sebutkan) _____________________

96

4.Pendidikan Terakhir

a.SMP (Sekolah Menengah Pertama)

b.SMA (Sekolah Menengah Atas)

c.Diploma/D-3

d.Sarjana

e. Pascasarjana

f. Lainya(Sebutkan)________

5. Pengeluaran per bulan

a.> Rp 1.000.000

b.Rp 1.000.001 – Rp 5.000.000

c. Rp 5.000.001 – Rp 10.000.000

d. Rp 10.000.001 – Rp 25,.000.000

e. Rp 25.000.001 – Rp 50.000.000

97

6.Tipe Shampoo apa yang anda gunakan?(pilih satu)

a.Sunsilk

b.Pantene

c.Clear

d.Head and shoulder

e. Dove

f.Lainnya (Sebutkan)

_____________________

98

Terhadap brand(merk) shampo yang anda jawab pada no 6, mohon isi pertanyaan-

pertanyaan berikut ini:

No. Questions

Sangat Tidak Setuju

1

Tidak Setuju

2

Agak Tidak Setuju

3

Agak Setuju

4

Setuju

5

Sangat Setuju

6

1

Saya sangat percaya akan

kualitas merek shampoo

yang saya pilih

2

Saya percaya akan merk

shampo yang saya pakai

mempunyai kualitas sangat

tinggi

3

Merk shampoo yang saya

pilih mempunyai fitur (e.g-

anti dandruff) yang bagus

4

Saya dapat langsung

mengingat ciri khas merk

tersebut

5

Saya dapat membedakan

secara langsung merk

shampoo tersebut dengan

merk shampoo lainya

6 Saya sangat memahami

merk shampoo tersebut

99

7

Merk tersebut mempunyai

citra nama yang unik

dibandingkan dengan

shampoo lain.

8

Saya ikut senang jika teman

atau siapa pun memakai

produk tersebut

9

Saya suka dengan

pencitraan merk shampoo

saya

10

Saya percaya kepada

perusahaan pembuatan merk

shampoo tersebut

11 Saya sangat loyal dengan

merk produk tersebut

12

Saat

pembelian,shampoo,merk

inilah yang menjadi prioritas

nomer satu.

13

Saya akan terus

mengunakan produk ini

sampai produk ini tidak

mengecewakaan.

14

Saya akan terus membeli

produk ini meskipun

harganya lebih dari merk lain

100

15

Saya akan sangat senang

untuk menganjurkan kepada

teman-teman saya

16

Biarpun merk lain

mempunyai fitur mirip dengan

merk shampo saya, Saya

tetap akan membeli shampo

yang saya gemari.

17

Mrek shampoo ini lebih dari

suatu produc buat saya e.g-

lifestyle

18 Mrek shampoo tersebut

sanggat istimewa untuk saya.

101

Appendix B:

The author did an exploratory test ,in order to know the most used and purchased brands

of shampoo thatis neccesary for the options in the questionnaire.The result shows that

sunsilk attains the highest users followed with dove and clear having head and shoulders

and pantene to acquire the second last and last rank in the research of 30 respondents.

Sunsilk20%

Pantene10%

Clear17%

Head & Shoulders

13%

Dove17%

Loreal6%

Others17%

Sample survey : Brands of Shampoo preffered (Percentage)

Clear17%

Sunsilk 20%

Others17%

102

Appendix C:

The figure above shows why the author uses a fast moving goods category which is

shampoo than following the orignal journal which is sportswear. From the first statistics

it shows that there has been a fluctuations in the demand of sportswear in indonesia

while the fast moving consumer goods are increasing in demand having three products

to be very powerful in year 2009 that is ciggarette, hair products and toothpaste.

measurement of customer based brand equity for shampoo...

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