STRATEGY TO INCREASE THE CHERY QQ SALES

By

Divanti Oenang 011200700006

A thesis presented to the Faculty of Economics President University

in partial fulfillment of the requirements for Bachelor Degree in Economics Major in Management

August 2010

PANEL OF EXAMINERS

APPROVAL SHEET

The Panel of Examiners declare that the thesis entitled “Strategy To

Increase The Chery QQ Sales” that was submitted by Divanti Oenang

majoring in International Business from the faculty of Economy was

assessed and approved to have passed the Oral Examinations on 20

September 2010

Andreas Yumarma

Chairman

Ir. Muhril Ardiansyah, M.Sc., Ph.D. Panel 1

nnnnnn Panel 2

DECLARATION OF ORIGINALITY

I declare that this thesis, entitled “Strategy to Increase the Chery QQ

Sales” is, to the best of my knowledge and belief, an original piece of

work that has not been submitted, either in whole or in part, to another

university to obtain a degree.

Cikarang, Indonesia, 31 August 2010

Divanti Oenang

ABSTRACT

The research is conducted to discover the dominant variable of Marketing Mix that

makes the sales of Chery QQ decreasing. The research is very important because it

will investigate and give clear explanation of what aspects influence the decreasing

sales of Chery QQ.

Quantitative research is applied so that it can be analyzed through mathematical

expression; and then it can used to identify the study in this research. Questionnaire

is used to collect all the necessary data. It is made with five answers. There are 20

questions in the questionnaire. As the respondents are the consumer of Chery QQ. 74

people as the sample they were chosen using purposive convenience sampling

method. The population, which is selected consumer, in this study is consumer of

Chery QQ in North Jakarta. Total consumer is 242 people.

The result of the research is the product variables as the dominant factor that cause of

the decreasing of Chery QQ.

ACKNOWLEDGMENT

Thanks god for the blessing and guidance that you have given to me, to finish my

thesis entitled “STRATEGY TO INCREASE CHERY QQ SALES”. This thesis is

one of requirements to accomplish Bachelor Degree for Faculty of Economics in

President University. In addition, the writing of this thesis has been supported by

many people who have directly involved both directly and indirectly help the writer

to finish this thesis. I would like to give my special thanks to:

My Beloved Dad, Mom you are the best parents in this world, thanks for everything

that you gave to me, especially for your support and advising me in doing this thesis.

My lovely Sisters and brother, thanks for motivation and supporting me in doing this

thesis

My thesis adviser Mr. Ir. Muhril Ardiansyah, M.Sc., Ph.D. for the guidance and

sugesstion along the time doing this thesis from the beginning till the end.

Mr. Ir. B.M.A.S Anaconda Bangkara, MT, for his knowledgeable information,

advices, suggestion, great discussion for my thesis.

My friend, my brother, and my best Tofan Taruna Anindita, for his advices,

support, and patient in helping me finish this thesis.

Power Ranger (Cheche, Lady, Nindy, Bagas, Hana), thank you very much for the

togetherness in last 3 years. Hope this friendship will last forever.

All my F1 Dormate: Mba Nana, Friza, Ria, Icha, Anggi, thanks for your support.

All student batch 2007: Yopie, Faza, Andi, Vina, Felix, Hakim, Marcel, Haris, and

others that I cannot mention it one by one. Thanks for keep supporting each others.

Mr. Musetayin, thanks for your great advice and help, you’re my last savior.

My senior batch 2005, thanks for all your great advice and motivating me to do this

thesis

All Lecturer, thank you for your teach and share your knowledge to me.

To all people who can not I mentioned on this paper. Thank you for your support

1

CHAPTER I

INTRODUCTION

1.1. Background of the study Currently, the entire community has a rival in business. Producers must have a very

high creativity in order to survive in a competitive business. As we know that, the

economic development in today's business world very quickly. No exception is also

effected the growth in transportation vehicles such as motorcycles, cars, trucks, and

bus. In this case, the national transportation system has an important role in

supporting the national development by facilitating all aspects of people’s activities

socially as well as economically. It promotes the population mobility and flow of

goods and services from one region to another. Land transportation, as part of

national transportation system, has been played the most important role. It can be

observed that regions, which have good land transportation facilities generally, have

a better economic growth than others. Eventhough the global economics crisis attack

almost all the countries in this world, the demand of vehicles still high, especially in

Indonesia (Figure 1.1.). The global economics crisis also effect the oil price, in this

year the price is reach around $70-80 per barrel (source: mediaindonesia.com). Many

automotive manufacture are compete each other to create more affordable vehicles

that use less gasoline than other manufactures, this efficient vehicle are expected that

can be accepted in the market.

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Figure 1.1. Statistic Data of Car Sales in Indonesia Source: Badan Pusat Statistik

In Indonesia car market, the strong competitions not only happen in the Multi

Purpose Vehicle (MPV) such as Toyota Innova, Isuzu Panther, and Honda CRV. But,

it also happens in the city car such as Karimun Estilo, Chery QQ, Hyundai Atoz, and

Kia Picanto. To merge in the market competition, every car manufacture must

prepare the best for their own product and also how to the market product. Prepare

the product can show with defining the marketing concept such as target market,

customer needs, intergrated marketing, and profits through the customer satisfaction.

Every car manufacture can maintain their market share not only with launching all

new products, but they can do a small change with the facility model and adding

some new accessories. Chery QQ first launched on September 2006, it is a city car

brand by Chery and it segmented in the low end class. During four years production,

Chery QQ already sold 2500 unit. PT. Indomobil Tbk through PT. Unicor Prima

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Motor launch Chery try to give an option to the market in city car segment. Actually,

In China, Chery was the first Chinese automobile maker to export its products, and as

of 2009 it remains the top exporter among Chinese automakers. Chery has received

the fourth position for automotive brands with the highest number of car sales.

Besides that, Chery also represents the largest vehicle exported in China (source:

wikipedia.com)

1.2. History of Chery QQ Chery was founded in 1997 to prop up the economy of Wuhu, a region of China that

has received little industrial development. Its first factory used machines and engine

technology purchased from Ford Europe for US$25 million. It began auto production

in 1999 using a licenced chassis from SEAT's Toledo. The company was an

illegitimate company under Chinese law of the time and had to be registered as a

"Car Parts Supplier." Thus, the company was not able to obtain a license to sell their

cars in all of China. In 2001, Shanghai Automotive Industry Corporation (SAIC)

bought a 20% stake in the company, allowing Chery to use SAIC's national retail

sales license. In 2001, Chery began exporting its cars to Syria, becoming China's first

car exporter. Chery also received its ISO-9001 certification. In September 2002,

Chery received its ISO/TS 16949 certification, the highest quality certification at the

time (source: chinacarforums.com).The Chery QQ is a city car produced by the

Chinese manufacturer Chery Automobile. It is a Completely Knock down (CKD) car,

their engine and materials are impoted from China. In Indonesia, Chery is marketed

by PT Unicor Prima Motor (UPM). PT Unicor Prima Motor began marketing the

Chery vehicles in Indonesia since September 2006. PT UPM is a subsidiary under the

banner of Indomobil Group, one of Indonesia's leading automotive industries. The

first Chery product that launched in Indonesia is the Chery QQ, which is a city car

vehicle. View to improved market opportunities, the event coincided with Indonesia

Motor Show in 2007, PT UPM launched Chery Tiggo, SUV 2000 cc. Today, UPM

has marketed two models Chery vehicles in Indonesia. Each year, PT UPM will add

4

a new model of Chery vehicles to be marketed in Indonesia. In addition to serving

the sales of Chery vehicles, PT UPM also committed to providing appropriate care

service, quick, and satisfying for their customers. Currently, Chery already has 23

outlets located on the island of Java, Bali, Sumatra, Kalimantan, and Sulawesi, where

21 outlets of which have been equipped with workshop facilities and spare parts. In

China, Chery occupies the fourth position for automobile brands with the highest

number of car sales. Chery Automobile Co. Ltd. as a principal Chery is listed as

state-owned enterprises in China.

1.2.1. Exterior The shape of the body is very stylish, soft, and cute. The exterior parts consist of

Front & Rear Fog Lamps, Rear Window Wiper, Front & Rear Bumper Sporty, Front

& Rear Body Kit, Side Visor, and Chrome Tail Pipe. Chery QQ is suitable for daily

use because of the body is very small. It has a smooth shape from front to back, and

its picture out the sense of movement. The design of the body is similar to Daewoo

Matiz and Chevrolet Spark.

1.2.2. Interior The car is known as “The little sprinter”, comes with power windows interior

features, automatic close window that activated when the cental door remote is

active. The key and remote are complemented by the Anti Theft System. The interior

of QQ is so simple. It has a power steering, auto close window, central lock, keyless

entry, electric miror, and radio type, fog lamp (front and rear), rear wiper, velg

standar, side skirt, rear spoiler, high mount stop lamp, 4 (four) safety belts, and audio

with CD/DVD/Radio/MP3 plus LCD Monitor 3 Inch. It is a four-door sedan which is

based on a platform self-developed by Chery. The QQ was designed to appeal the

younger buyers with is rounded body. The interior was particularly arranged for

comfort during a long journey.

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1.2.3. Performance

At first, Chery QQ first launch only one model which is QQ 0.8, but today the QQ

0.8 replaced with the new QQ 1.1. The QQ 1.1 has 3 variant, types S, Type G

Elegant, and the last is Type G Sporty. All variant is in manual transmision. Chery

QQ 1.1 using engine SQR472, 16-valve, four-cylinder in line with electronic

multipoint injection system. The QQ have maximum power of 68hp at 6000 rpm,

while tourque is 90Nm at 3800rpm. PT Unicor Prima Motor claimed that QQ can

reach top speed until 140 km/h.

1.2.4. Safety & Comfort

The comfort consist of Power Steering, Front & Rear Power Windows, Electrically

Adjustable Outside Mirrors, Air Conditioning, Intergrated audio with Single CD,

DVD, MP3 & Radio, and Automatic Close Windows. While, the safety consist of

Child Safety Lock, Front & Rear Seat Belt, Central Door Locking, Intergrated

Remote Key with Anti Theft System, and Rear Window Deffoger.

1.3. Problem Identified

Chery QQ 0.8 first launched and promoted on 2006 and chery QQ 1.1 promoted on

Indonesia International Motor Show 2008. When first marketed, QQ’s not too

booming. It’s only sold 269 units in 2006. But, in 2007 the sales is increasing to

300% that reach 758 units. The sales continue to rise till 851 units on 2008. But, in

the year 2009 the sales of QQ is decline to 407 units (Figure 1.2). The decreasing of

the demand is affected because of many competitors in the same model of Chery QQ

such as Toyota Yaris, Kia Picanto, and Honda Jazz.

6

Figure 1.2. Statistic Data of Chery QQ Source: PT. Indomobil, Tbk

Based on the observations from researchers that analyze this problem, the researchers

found a very drastic decline in the year 2009.

1.4. Statement of the Problem

From the description above, there are objectives that the researcher wants to achieve

during the research. The objectives of this research can be expressed in answering the

following questions:

a. What is the important factor that influence the sales of chery QQ sales

b. What is the factor/s that needs to be improved to push the Chery QQ sales?

1.5. Research Objectives

The objectives of this research are to analyze the factors that affected the declining

demand of Chery QQ during 2009.

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2006 2007 2008 2009

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a. To know what the factors that influences the sales of Chery QQ based on

Marketing Mix

b. To know what is the factors need to be improved to push the sales of

Chery QQ.

1.6. Significant of Study

The significant of study are:

1.6.1. Researcher

The researcher will be able to know how important the Marketing Mix in sales of

some product. In this case are Chery QQ sales. To make some product we should

know how to analyze the marketing mix factors to compete in market.

1.6.2. The company

The company was able to solve their problem which is the sales of chery QQ is

decrease in 2009 using the analysis that has been done and published by the

researcher. This is hoped to help the company to have a good reputation and they can

increase their sales.

1.6.3. Academy

The academy will gain more knowledge and understanding about the problem from

this research. The theory studied by students will have different application in the

real working world. It would be better for the universities to have different approach

on teaching the theory by the combination with case study exercise, this will

definitedly helps students being trained to solve problems and not focused on

proposed theory without observing the real business condition.

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1.7. Scope and Limitation of Study

Chery QQ will be the object of the observation and will be limited specifically in PT.

Unicor Prima Motor as the subsidiary under the banner of PT Indomobil Group as a

manufacture and distribution companies of Chery QQ in Indonesia. The study will

focus on analyzing the factors, process, and issues that related with Chery QQ. Since

the Chery QQ first launched on September 2006 until the end of 2009, the sales show

increasing demand significantly. In contrary, when entering year 2009, the demand is

declining. In this case, the researchers only take the data from 2006 until 2009 for

data analysis.

In addition, the study was limited to the information gathered from interview and the

researcher observation in PT. Indomobil Tbk from the sales department. Thus, the

study would analyze the data available in that department. And also researcher spread

the questionnaire to gather the information about the Marketing Mix of the Chery

QQ. The questionnaire consists of Marketing Mix which are Product, Place, Price

and Promotion.

1.8. Theoretical Framework To fulfill the needs of research, the writer elaborate the theory of research as below:

Figure 1.3. Theoretical Frameworks

Decreasing

Sales

Demand Theory Marketing Mix (4Ps)

Customer Satisfaction Customer Behavior

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1.9. Assumptions and Hypothesis 1. Null Hypothesis

Ha:

Decreasing of Chery QQ sales is caused by product factor according to

Marketing Mix.

Alternate Hypothesis

Ho:

Decreasing of Chery QQ sales was not caused by the product factor according

to Marketing Mix.

2. Null Hypothesis

Ha:

Decreasing of Chery QQ sales is caused by price factor according to

Marketing Mix.

Alternate Hypothesis

Ho:

Decreasing of Chery QQ sales was not caused by the price factor according to

Marketing Mix.

3. Ha:

Decreasing of Chery QQ sales is caused by promotion factor according to

Marketing Mix.

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Alternate Hypothesis

Ho:

Decreasing of Chery QQ sales was not caused by the promotion factor

according to Marketing Mix.

4. Ha:

Decreasing of Chery QQ sales is caused by place factor according to

Marketing Mix.

Alternate Hypothesis

Ho:

Decreasing of Chery QQ sales was not caused by the place factor according

to Marketing Mix.

1.10. Definition of Terms 1) Motor Vehicles are any kind of vehicles motorized by machine in those

vehicles. Usualy used for carrying peoples and goods on roads except those

vehicles moved along a railway line.

2) Passenger Cars are motor vehicles which have seats for more than eight

passengers, not included the driver. It can be with or without the boot

3) Buses are passengers cars which have seats for more than eight passengers,

not included the driver. It can be with or without the boot.

4) Trucks are motor vehicles to carry goods other than passenger cars, buses,

and motorcycles.

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5) Motorcycles are any kind of two wheeled motor vehicles.

6) Marketing mix (4Ps) is the set of controllable tactical marketing tools-

Product, Place, Price, and Promotion- that the firm blends to produce the

response it wants in the target market. (Kolter & Aramstrong, 2005)

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CHAPTER II

LITERATURE REVIEW

This chapter is about the literature used in this thesis to provide a clear

background or theoretical grounding to the research.

2.1. Marketing Kotler and Amstrong (2005) define marketing as the process by which companies

create value for customers and build strong customer relationship in order to capture

value from customer in return.

In addition, McDaniel, Lamb, and Hair (2006) describe, marketing is an

organizational function and a set of processes for creating, communicating, and

delivering value to customers and for managing customer relationships in ways that

benefit the organization and its stakeholders.

The more complete explanation about marketing is defined by John A. Howard of

Columbia University in 1973, which is the process of identifying customer needs,

conceptualizing those needs in terms of an organization capacity to produce,

communicating that conceptualization to the appropriate laws of power in the

organization, conceptualizing the consequent output in terms of the customer needs

earlier identified, and communicating those conceptualization to customers (Ries and

Trout, 2006).

In their study, Kotler and Amstrong (2005) develop the simple five step model of the

marketing process. Conversely, McDaniel et all (2006) classify four competing

philosophies that strongly influence an organization’s marketing activities.

The figure below shows the simple five steps model of the marketing process

developed by Kotler and Amstrong (2005). The marketing process consists of

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creating value for customer and building relationship with customer, and then

capturing values form customers. To create value and build a relationship, company

should understand its target market, then designing a strategy and marketing

programs that attract customers, so that the relation can be built through delighting

customers. When the relationship is established, company can capture values such as

profits and loyalty from customers.

This figure show the model of the marketing process

---------------------------------------------------

Figure 2.1. Simple Model of The Marketing Process Source: Pearson, 2005

Understand the market place and customer needs and wants

Design a customer-driven marketing strategy

Capture value from customers to create profits and customer

quality

Build profitable relationships and create customer delight

Construct a marketing program that delivers superior value

Create value for customers and build

customer relationships

Capture value from customers in return

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The first stage of the marketing process understands the target market’s needs and

wants. The core of marketing is human needs, which are the states of felt deprivation.

Human needs include basic physical needs for food, clothing, warmth, and safety;

social needs for belonging, and affection; and individual needs for knowledge and

self-expression.

Different from needs, wants are the form human needs take as they are shaped by

culture and individual personality. Wants are shaped by one’s society and are

described in terms of objects that will satisfy needs. Human wants that are backed by

buying power is called demand. People who have wants and resources will demand

products with benefits that add up to the most value and satisfaction.

Consumer needs and wants are fulfilled through a marketing offer, which is some

combination of products, services, information, or experiences offered to a market to

satisfy a need or want.

Marketing management is used to design a customer-driven marketing strategy. The

definition of marketing management by Kotler and Amstrong (2005) is the art and

science of choosing target markets and building profitable relationships with them by

creating, delivering, and communicating superior customer value. Marketing

management is devived into five alternative concepts, which are:

• The production concept

This idea holds that consumers will favor products that are available and

highly affordable.

• The product concept

The idea is that consumers will favor product that offers the most in quality,

performance, and features and that the organization should therefore devote

its energy to make continuous product improvements.

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• The selling concept

This concept holds that consumers will not buy enough of the firm’s products

unless it undertakes a large-scale selling and promotion effort.

• The marketing concept

It is the marketing management philosophy that holds that achieving

organizational goals depends on knowing the needs and wants of target

markets and delivering that desired satisfactions better than competitors do.

• The societal marketing concept

This is a principle of enlightened marketing that holds that a company should

make good marketing decisions by considering consumer’s wants, the

company’s requiremments, consumer long-run interest, and society’s long run

interests.

The marketing program builds customer relationships by transforming the marketing

strategy into action. The program consists of the firm’s marketing mix, the set of

marketing tools the firm uses to implement its marketing strategy. Marketing mix

tools are classified into four groups, called four Ps: product, price, place, and

promotion. In delivering value, the firm must create a need-satisfying marketing offer

(product). Then, the firm decides how much it will charge for the offer (price) and

how it will make the offer available to target consumers (place). Last, the firm must

communicate with target customers about the offer and persuade them of its merits

(promotion).

2.2. Marketing Mix 4Ps Marketing mix is the sets of marketing tools that work together to achieve company

objectives. It is also known as 4 P’s. Cullition (1948) stated that a marketing decision

should be a result of something similar to a recipe. In addition, Borden (1953) stated

in his American Marketing Association presidential address, took the recipe idea one

16

step further and coined the term “marketing mix”. A prominent marketer, McCarthy,

proposed a 4 P classification in 1960, which has seen wide use. The marketing mix is

a bundle of variables including the product or service itself (its advantages); its

availability (the place where and when it is available, delivered or distributed); its

image (the way it is promoted) and, of course, the price which should be charged.

There are literally dozen of marketing – mix tools. McCharty (1996) stated that a

popularized a four – factor classification pof these tools called four Ps: Product,

Price, Place (i.e., distribution), and Promotion.

2.2.1. Product Product plays the most significant role in marketing mix. Pricing, promotion, and

place are also important. However, if the products and services company offer are not

potential customer’s desire and are willing to buy, it will not matter how low the

price is, how attractive the advertising is, or whether it has good and convenient

location.

Kotler and Armstrong (2004) define a product as anything that can be offered to a

market for consumption that might satisfy a want or need. They further define a

consumer product bought by final consumer for personal consumption. According to

Ferrell (2005), the product is the core of the marketing mix strategy in which retailers

can offer consumers symbolic and experiental attributes to differentiate products

from competitors. In addition, Borden (1984) define product is about quality, design,

features, brand name, and sizes.

Products that are marketed include physical goods, services, persons, places,

organizations, and ideas.

According to Tan, et.al (1999), in planning its market offering, the marketer needs to

think through five product levels (see Figure 2.2.).

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Figure 2.2. Five Product Level Source: Kotler, Ang, Leong &Tan (1999)

1. The most fundamental level is the core benefit, namely the fundamental

service or benefit that the consumer is really buying.

2. At the second level, the marketer has to turn the core benefit into a basic

product, namely a basic version of the product.

3. At the third level, the marketer prepare an expected product, a set of

attributes and conditions that buyers normally expect and agree to when

they purchase this product..

4. At the fourth level, the marketer prepares an augmented product that

meets the consumer’s desires beyond expectations.

5. At the fifth stands the potential product, encompassing all the

augmentations and transformations that this product might ultimately

undergo in the future. While the augmented product describes what is

included in the product today, the potential product points to its

consumers and distinguish their offer.

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4

3

2

1

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Many attributes of a company’s products, including quality, brand name, packaging,

branding can affect consumer preferences. According to Gasperz (1997),

performances, features, reliability, conformance to specification, durability,

serviceability, aesthetic, and perceived quality are the product’s attribute that

expected by the consumers. Therefore, the product’s management plays an important

role to be success.

2.2.2. Price According to Tan, et.al (1999), the firm must decide where to position its

product on quality and price. A company can position its product at one of

seven levels:

1. Ultimate; there is an ultimate brand (the gold standard)

2. Luxury; just below the ultimate

3. Special Needs; brands that meet a special need

4. Middle; usually there are a large number of brands in the middle level

5. Ease / Convenience; brands that provide mainly the functional benefit

sought

6. Me Too, But Cheaper; cheaper brands that nevertheless perform

satisfactorily

7. Price Alone; brands whose only appeal is price.

Table 2.1.shows nine possible price-quality strategies. The diagonal strategies

1, 5, and 9 involve one firm offering a high-quality product at a high price,

another firm offering an average-quality product at an average price, and still

another firm offering a low-quality product at a low price. All three

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competitors can coexist as long as the market consists of three groups of

buyers – those who insist on quality, those who insist on price, and those who

balance the two considerations.

Table 2.1. Nine Price / Quality Strategy

Price

High Medium Low

Pr

oduc

t Qua

lity

High 1. Premium

Strategy

2. High-value

Strategy

3. Super-value

Strategy

Medium 4. Overcharging

Strategy

5. Medium- value

Strategy

6. Good-value

Strategy

Low 7. Rip-off

Strategy

8. False economy

Strategy

9. Economy

Strategy

Source: Kotler (1999)

Positioning strategies 2, 3, and 6 represent ways to attack the diagonal

positions. Strategy 2 says, “Our product has the same high quality as product

1 but we charge less.” Strategy 3 says the same thing and offers an even

greater saving. If quality-sensitive consumers believe these competitors, they

will sensibly buy from them and save money (unless firm 1’s product has

acquired snob appeal).

Positioning strategies 4, 7, and 8 amount to overpricing the product relative to

its quality. The consumers will feel “taken” and will probably complain or

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spread bad word-of-mouth about the company. These strategies should be

avoided by professional marketers.

Furthermore, the company first decides what it wants to accomplish with a

particular product. If the company has selected its target market and market

positioning carefully, then its marketing–mix strategy, including pricing, will

be fairly straightforward. The clearer a company’s objectives, the easier is it

to set proc. It can pursue any of six major objectives through its pricing:

a. Survival; Companies pursue survival as their major objective if plagued

with overcapacity, intense competition, or changing consumer wants. To

keep the plant operating and the inventories turning over, they will often

cut prices. Profit is less important than survival.

b. Maximum Current Profit; many companies try to set the price that will

maximize current profit.

c. Maximum Current Revenue; Some companies will set a price to

maximize sales revenue.

d. Maximum Sales Growth; Companies wanting to maximize unit sales

believe that a higher sales volume will lead to lower unit costs and higher

long-run profit.

e. Maximum Market Skimming; Many companies favor setting high

prices to “skim” the market.

f. Product Quality Leadership; A company might aim to be the product-

quality leader in the market and charge premium prices.

g. Other Pricing Objectives; Nonprofit and public organizations may adopt

other pricing objectives.

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Price is a central to marketing where it is one of the four variables in the marketing

mix that business people use to develop a marketing plan. A number of studies have

found that consumers rely on price as an indicator of product quality. More

expensive the product is, better the quality it is. A later study found out that

consumers use price to evaluate the prestige of the product. Nowdays, many

consumers buy products more on the basis of price that other attributes (Peter and

Donnely, 2007).

2.2.3. Place Kotler and Armstrong (2005), define place or distribution as a set of interdependent

organizations involved in the process of making product available for use or

consumption by consumers. It is very important to select locations that are accessible

to the target market because the availability will affect the sales.

Marketing-channel decisions are among the most critical decisions facing

management. The company’s chosen channels intimately affect all the other

marketing decisions. The company’s pricing depends on whether it uses mass

merchandisers or high-quality boutiques. He firm’s sales force and advertising

decisions depend o how much training and motivation the dealers need. In addition,

the company’s channel decisions involve relatively long-term commitments to other

firms. Corey (1991) observed:

“A distribution system … is a key external resource. Normally it takes years to build, and it is not easily changed. It ranks in importance with key internal resources such as manufacturing, research, engineering, and field sales personnel and facilities. It represents a significant a significant corporate commitment to large numbers of independent companies whose business is distribution – and to the particular markets they serve. It represents, as well, a commitment to a set of policies and practices that constitute the basic fabric in which is woven an extensive set of long-term relationship.”

Most producers work with marketing intermediaries to bring their products to the

market. The marketing intermediaries make up a marketing channel (also called trade

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channel or distribution channel). We will use Stern and El-Ansary’s (1996) definition

of marketing channels:

“Marketing channels are sets of interdependent organizations involved in the process of making a product or services available for use or consumption.”

The use of intermediaries largely boils down to their superior efficiency in making

goods widely spread and accessible to target markets. Marketing intermediaries,

through their contacts, experience, specialization, and scale of operation, offer the

firm more than it can usually achieve on its own. According to Stern and El-Ansary’s

(1996) definition of marketing channels:

“Intermediaries smooth the flow of goods and services … This procedure is necessary in order to bridge the discrepancy between the assortments of goods and service generated by the producer and the assortment demanded by the consumer. The discrepancy results from the fact that manufacturers typically produce a large quantity of a limited variety goods, whereas consumers usually desire only a limited quantity of a wide variety goods.”

Furthermore, companies must decide on how many intermediaries to use at each

channel level. According to Stroh (1978), three strategies are available:

• Exclusive Distribution; involves severely limiting the number of

intermediaries handling the company’s goods or services.

• Selective Distribution; involves the use of more than a few but less than

all of the intermediaries who are willing to carry a particular product.

• Intensive Distribution; is characterized by placing the goods or services

in as many outlets as possible. When the consumer requires a great deal of

location convenience, it is important to offer greater intensity of

distribution. This strategy is generally used for convenience items such as

instant noodles.

23

2.2.4. Promotion According to Cravens and Piercy (2006), the marketing communication mix

(also called the promotion mix) consists of five major tools:

1. Advertising: Any paid form of non personal presentation and promotion

of ideas, goods, or services by n identified sponsor.

2. Sales Promotion: Short-term incentives to encourage trial or purchase of

a product or service.

3. Public Relation and Publicity: Programs designed to promote and/or

protect a company’s image or its individual products.

4. Personal selling: Face-to-face interaction with one or more prospective

purchasers for the purpose of making presentation, answering questions,

and procuring orders.

5. Direct marketing: Use a mil, telephone, fax, e-mail, and other

nonpersonal contact tools to communicate with or solicit a direct response

from specific consumers and prospects.

The figure below is about the Marketing Mix that the researcher use to construct the questionnaire

24

Figure 2.3. The Marketing Mix

Source : Kotler

2.3. Customer Satisfaction According to Moven (2000), Customer satisfaction is defined as the overall attitude

regarding a good or service after its acquisition and use. Another argument from

Jerry and Peter (2005), customer satisfaction is defined as the degree to which a

products performance exceeds the consumer expectations.

From those definitions, it can be concluded that customer satisfaction is the attitude

of the customer regarding to which perceived product or service meets or greater the

customer’s expectations, which might leads to brand loyalty as well as profitability.

Based on Hawkins and Looney (1997), there are attributes that create customer

satisfaction has known as “The Big Eight” are as following:

Marketing Mix

Price Place

- Variety - Quality - Design - Feature - Brand Name

- Advertising - Personal Selling - Sales - Promotion

- Channels - Coverage - Locations

- List Price - Discounts - Payment Period - Credit terms

Product Promotion

25

1. Value to Price Relationship

Determine the value of the difference between what the customer get and

what he/she pays to receive it. That means a relationship between price and

product value is decided by the difference between value that customer get

toward the product that they have purchased.

2. Product Quality

The sum of all the quality components thet create the product and that

contribute to the value it adds. Means, the quality from the whole components

that form a product, and it makes the product has an added value.

3. Product Feature

They are physical components that yield the benefit. It can be defined as the

physical components of the product that differentiate from one product to

others or give more advantage than other products that are similar.

4. Reliability

How well a product/service works based on to its promise. It is a combination

of product quality and the utility, whether its meet the expectation or doesn’t

meet the expectation.

5. Warranty

It is an offer that able to refund the purchase price or replace a defective

product when the product fails after purchased by the customer.

6. Response to and Remedy of Problems

An employee’s attitude in reacting to helps to solve the problems. Means that,

employee’s attitude on responds customer complaints or helps customer to

solve problem that appears.

7. Sales Experience

26

It is about interpersonal relationship between employees with customer in

communication that related in purchasing the item, whether the customer

feels happy or comfortable when communicated with the employee that might

lead to satisfaction.

8. Convenience of Acquisition

Can be defined as easiness the product can be obtained or the convenience

that given by the company to the customer toward product accessiblity.

Parasuraman, et.al (1990) had discovered 10 general dimensions that used to measure

customer satisfaction, they are:

1. Tangible

The physical facilities, appearance of personnel, tools or equipment used to

provide service and physical representation of the service.

2. The reliability

It involves consistency of performance and dependability of the products or

services, examples: the firm performs the service right the first time, accuracy

in billing, etc.

3. The Responsiveness

Concern the willingness or readiness of employees to provide service. It

involves timeless of service, example: mailing a transaction ship immediately,

calling the customer back quickly, etc.

4. The competence

Depends on the skills and knowledge of the employees when perform the

service, example: knowledge and skill of the personnel, etc.

5. The courtesy

27

Courtesy is related to the politeness, respect, consideration and friendliness of

the employee and the cleanliness, meet appearance of public contact

personnel.

6. The credibility

Is the result of the trustworthiness, believability, honesty, and having

customer best interest at heart on the products or services.

7. The security

Is viewed as the freedom from danger, risk, or doubt, for example: physically

saftey while using service, financial safety and confidentiality.

8. The Needs

Understanding and knowing the customer are important in term of customer

perceptions and satisfaction. This means the effort of the company to

understand customer’s needs.

9. The access

Consist of the approachability and ease of contact, for example: the service is

easily accessible by telephone, the waiting time to receive service is not

extensive.

10. The communication

It is means keep customer informed in language they can understand and

listening to them, whether complains or suggestions.

But later investigation showed that, in fact, some the 10 of dimensions were

correlated, according to Parasuraman, et.al (1990), customer satisfaction can be

evaluated based on five specific dimensions:

28

1. Tangibles

Tangible is defined as the appearance of physical facilities, equiptment,

personnel, and written communication material. All of these provide physical

representation or image of the service to the customers; most of new

customers will use it to evaluate quality.

2. Reliability

Reliability is defined as the ability to perform the promised service

dependably and accurately. In general, reliability means that the company

delivers its promise, for example: about delivery, service provision, problem

resolution and pricing.

3. Responsiveness

Responsiveness is defined as the willingness to help customers and to provide

prompt service. This means the employees or company give attention and

promptness in dealing with customers request, question, complaints and

problems.

4. Empathy

Empathy is defined as the provision of caring, individualized attention to

customers and customer understanding. The essence of empathy is conveying,

through personalized or customized services, that customers are unique and

special.

5. Assurance

Assurance is defined as the knowledge, competence, and courtesy of

employees and their ability to convey and inspire trust, credibility, security

and confidence to customers.

Customer satisfaction refers to extent to which customers are happy with the

products and services provided by a business, it is an ambiguous and abstract concept

29

and the actual manifestation of the state of satisfaction will vary from person to

person and product or service to product or service. The state of satisfaction depends

on a number of both psychological and physical variables which correlate with

satisfaction can also vary depending on other options the customer may have and

other products against which customer can compare the organizations’s products

according to Saparudin, (2008).

Rust (1994) stated that satisfaction is a consumer’s post purchase evaluation of the

overall service experience (process and outcome). It is an affective (emotion) state or

feeling reaction in which the consumer’s needs, desires, and expectations during the

course of the service experience have been met or exceeded.

A lot of scholar have described customer satisfaction; overall of the description can

be explained on three main components: (1) Customer satisfaction is a response

(emotional or cognitive) (2) the response related to a certain focus (expectation,

product, consumer experience, etc) and (3) Response happened on a certain time

(after consumption, after product choosing, based on accumulative experience, etc)

(Saparudin, 2008).

According to Paul (2005)

Customer satisfaction is a critical concept in marketing thought and consumer research. It is generally argued that if consumers are satisfied with a product, service, or band, they will be more likely to continue to purchase it and tell others about their products or bands and complain to manufactureres, retails, and other consumer.

Kotler (2000) stated that “Satisfaction is a person’s feeling of pleasure or

disapointment resulting from comparing a product’s perceived performance (or

outcome) in relation to his or her expectation”.

Customer satisfaction is a collective outcome of perception, evaluation and

psychological reaction to the consumption experience with a product/service. By Yi

(1990)

30

Satisfaction is a function of customer’s belief that he or she was treated fairly. By

Hunt 1991

“Customer satisfaction is considered a prerequisite for customer retention and loyalty

and obviously helps in realizing economic goals like profitability, market share,

return on investment, etc.” (Sureshchander, 2002).

2.4. Consumer Behavior Consumer behavior is the study of individuals, groups, or organizations and the

processes they use to select, secure, use, and dispose of products, services,

experiences, or ideas to satisfy needs and the impacts that these processes have on the

consumer and society. All marketing decisions and regulations are based on

assumptions about consumer and the marketing practice designed to influence

consumer behavior influences the firm, the individual, and society (Hawkins, Best

and Coney, 2004)

Marketers have always been interested in how consumers spend their money. How

they spend defines who they are. Consumer’s product and service preferences are

constatntly changing. In order to address this constant state of flux and to create a

proper marketing mix for a wel-defied market, marketing managers must have a

through knowledge of consumer behavior. Consumer behavior describes how the

consumer makes purchase decisions and uses and disposes of the purchased goods

and services.the study of consumer behavior also include the analysis of the factors

that influence purchase decisions and product use. (Hawkins, best and coney, 2004)

Customers have several activities before they decide to purchase. Usually, customers

find the products based on their needs, and then they evaluate the products. The

activities done by customers before and after they purchase is called consumer

behavior. There are several quotations of the definition of consumer behavior:

31

Solomon (2007) defines consumer behavior as the study of the processes involved

when individuals or groups select, purchase, use, or dispose of products, services,

ideas, or experiences to satisfy needs and desires.

In addition, Berman and Evans (2004) in their book entitled Retail Management

explain Consumer Behavior as the process by which people determine whether, what,

when, how, from, whom, and how often to purchase goods and services.

The definition of consumer behavior based on Peter and Olson (2005) is the thoughts

and feelings people experience and the actions they perform in consumption process

including all the things in the environment that influence these thoughts, feeling, and

actions.

McDaniel et all (2006) describe how consumers make purchase decisions and how

they use and dispose of the purchased goods or services as the definition of consumer

behavior.

Before purchasing a product, consumers usually through a process of recognizing

that they need a particular product, and then they obtain information about which

product suits their needs, after that they will find several kinds of products to be

evaluated before they decide to buy a product. In the end, it will result whether the

product is satisfactory or not.

2.5. Demand Demand represents the consumer or buyer side of the market. According to Clayton

(2008), demand itself is s microeconomic concept which contains theory that deals

with behavior and decision making by individual units, such as people and firms. It is

defined as the desire, ability, and willingness to buy a product (Clayton, 2008). Only

those who have demand can compete with others who have similar demands

(Clayton, 2008).

32

The concept of demand is quiet simple since it involves only two variables which are

the price and quantity of a certain product at a given point in time. It is not that other

things like preferences, population can be excluded from factors affecting demand,

but basically demand is described and measured using prices and quantity. The

quantity demanded of a good or service is the amount that consumers plan to buy

during a given time period at a particular price (Parkin et al, 2005). Prices influence

consumer behavior so that quantities of an item demanded will be different at

different prices.

The demand curve is graphically illustrated as a downward sloping line showing

different quantity demanded at different prices. The curve is downward sloping

because people are in general willing to purchase more of something when its price

decreases and purchase less when the price increases. The market demand curve is

not exactly the same as individual demand curve as one’s sensivity towards price

changes can be slightly different from the others. However, both curves are similar.

2.5.1. The law of Demand According to Clayton (2008), the law of demand has a concept that the quantity

demanded varies inversely with its price. The law of demand states that when the

price of good rises and everything else remains the same, the quantity of the good

demanded will fall (Hall and Lieberman, 2003). Likewise, when the price goes down,

quantity demanded goes up (Clayton, 2008).

Baumol and Blinder (2003) mentioned that economics laws are not always obeyed,

and the law of demand is not without exceptions. It is called as a law in social

science because it usually holds and it has been proven by study and through

observation that people will buy more when prices are low and less when prices are

high. Like in the market when people notice that there is a sale or that prices are

higher than usual, their reactions will be different and that can be measured by the

inverse changes in quantity they purchase at different prices.

33

The other theory that can help explain the law of demand could be the throty of

‘marginal utility’ – the extra satisfaction someone will gets from possessing or

consuming one more unit of an item. The more of a good a customer has, the less

marginal utility an additional unit contributes to overall satisfaction, if all other

things remain unchanged (Baumol and Blinder, 2003). In other words, people have

diminishing satisfaction every time they purchase more amount of product. Because

of the diminishing satisfaction, people are not willing to pay as much for the second,

third, fourth,

34

CHAPTER III

METHODOLOGY

3.1. Research Methodology

In this research, the researcher prefers to use quantitative method than qualitative.

People will easily to receive what we aim when we give argumentation based on the

valid numerical data rather than use observation or interview result. Based on Cooper

and Schindler (2006) defined quantitative research attempts precise measurement of

something. Such methodology answer questions related to how much, how often, and

how many and who. In quantitative research, Schiffman and Kanuk (2004) state that

the researcher analyses the data by using objective, standardized, statistical method

consisting mainly of comparisons of averages among the predefined variables and

significance test that estimate the extent two which the result represent the universe.

Beside that quantitative method has strengths that have beneficiaries for the research.

Matveev in his article mentioned that:

The strengths of the quantitative method include:

1. Clearly and precisely specifying both independent and the dependent variables under

investigation;

2. Stating the research problem in very specific and set term (Nachiamas & Nachiamas,

2000)

3. Following firmly the original set of research goals, arriving at more objective

conclusions, testing hypothesis, determining the issues of casualty;

4. Eliminating or minimizing subjectivity of judgment (Kealey & Portheroe, 1996).

35

5. Achieving high levels of reliability of gathered data due to controlled observation,

laboratory experiments, mass survey, or other form of research manipulation

(Balsey,1970);

6. Allowing for longitudinal measures of subsequent performance of research subject.”

(Matveev, 2008,)

From citation above the quantitative method is better than qualitative for this topic.

The topic is casualty issue, two variable dependent and independent and high level of

reliability for self construct questionnaire. We can also eliminate subjective opinion

of the researcher. The researcher prefers to use quantitative method for the research

rather than qualitative method.

3.2. Research Model

This model constructed by the researcher to figured out the variable that are used in

the multiple regression method.

Figure 3.1. The Research Model Source: constructed by researcher

X2

Price Y

Overall Customer

Satisfaction X3

Place

X4

Promotion

X1

Product

36

3.3. Research Framework

The figure 3.2. below explain about how the researcher do the research from

collecting the data until obtain the result.

Figure 3.2. The Research Framework Source: constructed by researcher

Statement of Problems

Literature Study

Research Variable

Questionnaire

Pretest

Valid

Reliability Test

Reliable

Data Collection

Multiple Regressions

Make conclusion of the research

Eliminate

Invalid

Not Reliable

Collected the Chery QQ sales from PT. Indomobil

37

3.4. Research Instrument

This research uses self constructed questionnaire instrument to collect data. Before

decided to make self constructed questionnaire the researcher have search

questionnaire from other research but the questionnaire that researcher has got did

not match with the theory that researcher used. So the researcher has decided to

construct the questionnaire based on the related theory that is used in the research

and will do reliability and validity test. The reason behind self construct

questionnaire, as mention by Sumarni and Wahyuni (2006) were as follow:

1. Faster and cheaper to gather data.

2. The research was conducted in the operational activity of the company.

3. It invited big scope of respondent.

4. The researcher could explain more detail each question to prevent

misunderstanding.

5. To reduce sampling error as a result of unreturned questionnaire.

To complete this study, the researcher developed and constructed the sets of

instrument in form of survey questionnaire as follows:

Questionnaire is constructed to evaluate the elements of marketing mix of Chery QQ

perceived by consumers which is consisted of several variables such as:

a. Product; that covers variables such as: the quality of Chery QQ car, the varieties

of product of Chery QQ, the interior and exterior design of the product, and the

brand awareness.

b. Place; that covers variables such as the show room, location, and coverage.

c. Price; that evaluates pricing strategy, price of Chery QQ, Price of Chery QQ

stable, Price is good value for its product.

38

d. Promotion; that evaluates Chery QQ has joined the big automotive event in

Indonesia. Chery QQ advertising is attractive or not, and distributor active

recommend the product or not.

3.5. Testing Instrument

If we built the questionnaire, we should test it to make sure that questionnaire is

proper to measure the research itself. The tests needed to be conducted are validity

test and reliability.

a. Validity testing

Validity is the extent to which a test measures what we actually wish to measure

(Cooper and Schindler, 2006). There are two main things which need to get the

validity testing. Content and Construct Validity. Content Validity was done earlier

before the questionnaires were distributed to the respondents. This was done through

the judgments of a panel of persons on how well the instrument meets the standards.

For this research purposes, the questionnaire has been reviewed by thesis mentor and

view lecturers.

In testing the construct validity, the writer used Pearson’s correlation coefficient.

This formula is also used to test items validity. This coefficient of correlation can be

computed from a computational formula based on the actual values of X and Y. The

formula is:

𝑟 = 𝑁 (∑𝑋𝑌) − (∑𝑋) (∑𝑌)

�{𝑁∑𝑋2 − (∑𝑋)2}{𝑁∑𝑌2 − (∑𝑌)2}

Equation 3.1. Pearson Correlation Coefficient Source : Cooper and Schindler, 2006

39

Where:

r = numeral of correlation

N = quantity of respondent

X = question score from respondent

Y = total score of respondent

The correlation techniques to determine item validity was used because it is the most

popular technique used up until now (Masrun, 1979 cited in Sugiyono, 2006).

To determine the validity of both constructs and items, the researcher compares the r

computation with the r table. If the r computation is greater than r table means than

the constructs and items in the questionnaire are valid. In the execution, the writer

would use a significant level of 0.05 since it is commonly used. The score standard

for validity is from -1 to 1, 1 is the best score. From the calculation results, this study

is 50% valid (See in APPENDIX), from 10 questions only valid 5 question per

variable and has been distributed to 74 respondents.

b. Reliability

Reliability is not as valuable as validity, but it is much easier to access. It is

concerned with estimates of the degree to which a measurement is free of unstable

error (Cooper, Donald and Schindler, Pamela S, p.352). For this study, the researcher

using Cronbach Alpha formula to determine the reliability.

The Cronbach Alpha formula was used to measure this reliability testing:

α = 2 �1 − 𝑆12 + S22

Sx2�

40

Where:

S12 and S2

2 = Variance score of first and second half

Sx2 = Test score variance

Equation 3.2. Cronbach Alpha Formula Source: Azwar, 1997, P.76

3.6. Data Processing

Data processing is the main tool for analyze and calculating process on chapter IV. In

this research, the researcher analyse and process the data using computer statistical

tool, which is SPSS 16 with using analysis on multiple regression and ANOVA. The

analysis and calculation process will be shown in next chapter.

3.6.1. Statistics

In analyzing the data, this research utilized two (2) statistical tools. First, is SPSS.

Second, is Microsoft Excel.

3.6.2. SPSS

Briefly, this computer software would be used to input the respondents’ answers, test

the instrument validity and reliability, and present respondents’ answers.

3.6.3. Microsoft Excel

a. Likert Scale

The Likert Scale is developed by Rensis Likert. It is the most frequently used

variation of the summated rating scale. Summated rating scales consist of statements

that express either a favorable or an unfavorable attitude toward the object of

41

interest. The participant is asked to agree or disagree with each statement. Each

response is given a numerical score to measure the participants overall attitude.

(Cooper and Schlinder, 2006).

The author chose Likert Scale for this study because of several reasons as follows:

• It is common, very convenience, and most widely used (Cooper and Schlinder,

2006).

• It is probably more reliable and provides a greater volume of data than many other

scales (Cooper and Schlinder, 2006).

• It is applicable to this study both that focus on the object or respondents study

(Brunt and Paul, 1998).

In this study, data were interpreted using five-Likert scale (Malhotra, 2004) as the

same serves as basis for the interpretation of the results of the computed data where

the boundary of numeral and option includes:

Table 3.2. Relative Grading Statement for Each Dimension

Relative Grading Statement Score

Strongly Agree (SA) 5

Agree (A) 4

Naither Agree nor Disagree / Neutral (N) 3

Disagree (D) 2

Strongly Disagree (SD) 1

42

3.7. Testing Hypothesis and Data Analysis Method

3.7.1. Multiple Regression

The researcher use Multiple Regression model which is to learn more about the

relationship between several independent or predictor variables and a dependent or

criterion variable and analysis of variancze (ANOVA) which helps to examine the

significant mean differences among more than two groups on an interval or ratio

scaled dependent variable (Sekaran ,2003).

In any regression model, there is an implicit assumption (which can be tested) that a

relationship exists between the variables. There is also some random error that cannot

be predicted. Referring to the research objective to examine the variables that affect

the customer satisfaction of the Chery QQ customer, the underlying multiple

regression will be used:

Y = a + bX1 + cX2 + dX3+ eX4

Where:

Y = Overall customer satisfaction

a = Intercept

X1 = Product

X2 = Price

X3 = Place

X4 = Promotion

b, c, d, e = regression cooeficient of independent variable

43

The purposed of regression analysis is to come up with an equation of a line that fits

through of points with the minimal amount F deviations from the line. It also has

functions to understand the relationship between the variables and to predict value of

one based on the other. Montgomery (1928) outlines the following four purposes for

running a regression analysis:

1. Description – The analyst is seeking to find an equation that describes or

summarizes the relationship between two variables. This purpose makes the

fewest assumptions.

2. Coefficient Estimation – This is a popular reason for doing regression analysis.

The analyst may have a theoretical relationship in mind, and the regression

analysis will confirm this theory. Most likely, there is a specific interest in the

magnitude and signs of the coefficients. Frequently, this purposed for regression

overlaps with others.

3. Prediction – The prime concern here is to predict the response variable. These

predictions may be very crucial in planning, monitoring, or evaluating some

process or system. There are many assumptions and qualifications that must be

made in this case. Interval estimates require that normality assumption to hold.

4. Control – Regression model may be used for monitoring and controlling a

system. When a regression model is used for control purposes, the independent

variable must be related to the dependent variable in a causal way. Furthermore,

this functional relationship must continue over time. If it does not, continual

modification of the model must occur.

The result from this regression analysis will be used to accept or to reject the

hypothesis as to whether there is any effect or not between each independent

variable with dependent variable. To decide whether to reject or not to reject the

hypothesis, the criteria is α = 0.05.

44

3.7.2. Statistics Implementation

1. Measuring the Variability of the Regression Model.

a. Coefficient of Determination (R2)

Coefficient of Determination measures the variability in Y that is explained by

the regression equation. The R2 value can range from a low of 0 to a high 1

(0≤R2≤1):

If R2 = 0, X explains 0% of the variability in Y

If R2 = 1, X explains 100% of the variability in Y

b. Coefficient of Correlation (R)

Coefficient Correlation can be divided as the following:

1) 0.70 – 1.00 (either plus or minus) shows high correlation

2) 0.40 - <0.70 (either plus or minus) shows substantial correlation

3) 0.20 - <0.40 (either plus or minus) shows low correlation

4) <0.20 (either plus or minus) shows no correlation

2. Testing the Model for significance

Coefficient pf Correlation shows the degree or strenght of the linear relationship.

It can be stated at any number between +1 and -1. The value of R is the square

root of R2. In the hypothesis testing, the researcher use F test and t test.

45

a. F-test

F-test determines whether or not there is a relationship between the set of

independent variables and dependent variable simultaneously. An F-test is used

to statistically test the null hypothesis that there is no linear relationship between

X and Y variable. If the significance level for F-test is below 0.05, we reject H0

and conclude there is a linear relationship, and vice versa.

Ho: b = c = d = e = 0

(If significant F < 0.05, reject H0)

Ha: At least one coefficient ≠ 0

(If significant F > 0.05 do not reject H0)

c. t-Test

t-Test is applied to determine the partial relationship between each independent

variable (coefficient) and the dependent variable. The null hypothesis is that the

coefficient of X (i.e. the slope of the line) is 0. If the significance level for t-test

is low (significance level α used is 0.05), we reject H0 and conclude that there is

a linear relationship, and vice versa.

Ho: b = 0, if significance t < 0.05, reject Ho

Ha: b ≠ 0, if significance t > 0.05, do not reject Ho

Ho: c = 0, if significance t < 0.05, reject Ho

Ha: c ≠ 0, if significance t > 0.05, do not reject Ho

46

Ho: d = 0, if significance t < 0.05, reject Ho

Ha: d ≠ 0, if significance t > 0.05, do not reject Ho

Ho: e = 0, if significance t < 0.05, reject Ho

Ha: e ≠ 0, if significance t > 0.05, do not reject Ho

3.8. Sampling Design

3.8.1. Size of Population

Population simply is general area that consists of: object or subject has quantity and

certain characteristic considered by the researcher to be studied and then taken

conclusion. The size of population is 242 taken from number of sales of Chery QQ in

North Jakarta from it is launched in 2006.

3.8.2. Sampling Technique Applied

Sample is the part of the population that we actually examine in order to gather

information. So we can apply the concept to this research. There are several sampling

method that’s can be used to collect the data. Those method such as random

sampling, cluster sampling and so on.

The researcher uses purposive convenience sampling method for the research to

gather the data from the respondent. The amount of data taken is targeted to have

confidence level of 90%, and a margin error of 10%.

The sample size population was determined using the formula Slovin, (1960) as

follows:

47

𝐧 =𝑵

𝟏 + 𝑵𝒆𝟐

Where :

n = sample size

N = population size

e = desired margin of error

𝑛 = 242

1 + (242(.1)2

n = 70.7

The result of computation above shows n = 70.7

The researcher round it up to 74 respondents

3.9. Who the Respondents are

The respondents for this research are the customer of Chery QQ from North Jakarta

only.

3.10. Limitations

In doing this research, there were some limitations faced by the researcher such as lack of

supporting data of Chery QQ customers when submitting the questionnaire. Some customers

are not willing to fill the questioner, and some of them did not bringing back the questioner

to the researcher. The researcher has a short time to finding the customer of Chery QQ

because it is not easy to find this car in the road. The researchers only distribute the

questioner from the customer of Chery QQ in North Jakarta only.

48

CHAPTER IV

ANALYSIS OF DATA AND INTERPRETATION OF

RESULTS

4.1. Research Objectives Description

In this chapter, the researcher presents full analysis of the data gathered, from

respondents’ profile to the interpretation of results. The purpose of this research is to

find out the most dominant factor that affects the decreasing sales of Chery QQ. In

other to know if there is any significant influence from the factors mentioned before,

the researcher use Multiple Regression Method. In this research objective, the

researcher collected the data from the consumer of Chery QQ by distributing the

questionnaire.

4.2. Regression Analysis and Model Result

The basic assumptions tests for regression model are normally test, autocorrelation

test and multicollinearity test. If the regression model does not fulfill the test, so the

explaining variables are not efficient.

4.2.1. Autocorrelation Test

Durbin Watson Test is used to test the autocorrelation. This test objective is to see

whether the correlation between dependent variable with itself exists or not. Santoso

(1999) said that the value of Durbin-Watson used to test the autocorrelation with the

stipulation if the value in range between (-2) until (2) means there is no

autocorrelation.

49

Table 4.1. Autocorrelation

Model Durbin-Watson

1 1.062

4.2.2. Coefficient of Correlation and Determination

Coefficient Determination is used to test goodness-of-fit from regression model.

From the table below, we can see the coefficient correlation (R) of the regression

model is 0.364 which means that there is low relationship of the combination of

indpendent variables to the dependent variable. The coefficient of determination (R2)

is 0.132, which means 13.2% variability in the dependent variable, customer

satisfaction of Chery QQ can be explained by the variability in the combination of 4

(four) independent variables which are Product, Price, Promotion, and Place. We can

see the R and R2 in the table 4.2 below.

Table 4.2. Model Summary

Model R R Square Adjusted R

Square Std. Error of the Estimate Durbin-Watson

1 .364a .132 .082 .69177 1.062

a. Predictors: (Constant), x4, x3, x1, x2

b. Dependent Variable: Y

Source: Appendix, SPSS Result

50

4.2.3. Significance of the Model

1. Simultaneous Influence F-test (P value)

ANOVA (analysis of variance) shows the value of F calculation. Simultaneous effect

or F-test is used to see whether independent variables altogether or simultaneously

affect the dependent variable.

The significance level F for a given hypothesis test is a value for which P-value

(sig.F) less than or equal to α is considered statistically significant. Typical value for

α used in this research is 0.05 (confidence level).

From the table 4.3. below, it shows that the value of F test is 2.63 with significance

value of 0.042 (<0.05). Therefore, the significance value is less than 0.05, it

concludes that Product, Price, Promotion, and Place are affecting the customer

satisfaction of Chery QQ. In conclusion of the F test, there is a simultaneous affect of

Product, Price, Promotion, and Place.

Table 4.3. ANOVA

Model Sum of Squares df Mean Square F Sig.

1 Regression 5.034 4 1.259 2.630 .042a

Residual 33.020 69 .479

Total 38.054 73

a. Predictors: (Constant), x4, x3, x1, x2

b. Dependent Variable: Y

Source: Appendix, SPSS Result

51

2. Partial F-test (t-test)

Partial test is used to see the effect of each independent variable toward dependent

variable. Below is the table 4.4. that shows the result of partial test. From the four

independent variables which included in the regression model, one of the

independent variable (Product) does affect the dependent variable, the overall

customer satisfaction of Chery QQ significantly, because the value of significance of

product variable is 0.006 respectively which is lower than 0.05.

The other variables, such as Price, Promotion, and Place, doesn not affect the

dependent variable significantly, because the value of significance of the variable is

0.333, 0.513, 0.579 which are greater than 0.05.

Table 4.4. Coefficients

Model

Unstandardized Coefficients Standardized Coefficients

t Sig. B Std. Error Beta

1 (Constant) 1.915 .681 2.814 .006

x1 .470 .166 .328 2.841 .006

x2 .155 .159 .116 .975 .333

x3 .116 .177 .074 .657 .513

x4 -.071 .128 -.066 -.557 .579

a. Dependent Variable: Y

Source: Appendix, SPSS Result

52

3. Multiple Regression Model

The regression model that already discussed in analysis method in chapter 3, the

researcher fulfills the calculation result (intercept and cooficients) from table 4.3 into

the multiple regression models.

Y = 1.915 + 0.470X1 + 0.155X2 + 0.116X3 - 0.071X4

Where:

Y = Overall customer satisfaction

a = Intercept

X1 = Product

X2 = Price

X3 = Promotion

X4 = Place

b, c, d, e = regression coeficient of independent variable

53

4.2.4. Detailed Hypothesis Discussion Table 4.5. Coefficients

Model

Unstandardized Coefficients Standardized Coefficients

T Sig. B Std. Error Beta

1 (Constant) 1.915 .681 2.814 .006

x1 .470 .166 .328 2.841 .006

x2 .155 .159 .116 .975 .333

x3 .116 .177 .074 .657 .513

x4 -.071 .128 -.066 -.557 .579

a. Dependent Variable: Y

Source: Appendix, SPSS Result

Coefficient of determination (R2) of the model is 0.132. It means that 13.2%

variability of the dependent variable in this research which is the customer

satisfaction of Chery QQ can be explained by the variability combination of Product,

Price, Promotion, and Place. The rest are explained by other variables out of the

model.

The partial (t-test) is done to see the effect of each independent variable individually

toward the dependent variable in the regression model. In this research, the partial

test (t-test) was conducted in order to see whether the Product, Price, Promotion, and

Place are individually affecting the customer satisfaction of Chery QQ.

Therefore, the hypotheses of this t-test are:

Ho: ß = 0, if t significant < 0.05, reject Ho

Ha: ß ≠ 0, if significant t > 0.05, do not reject Ha

54

Simultaneous effect test (F-test) is done for this research to see if the independent

variables altogether affects the dependent variable. In this research, the test is done to

see whether the Product, Price, Promotion, and Place altogether affect the customer

satisfaction of Chery QQ.

The hypotheses of this F test are:

Ho: b = c = d = e = 0, if significant F < 0.05, reject Ho

Ha: At least one coefficient = 0, if significant F > 0.05, do not reject H0

According to the hypothesis test, there is no sufficient evidence to reject Ha or not to

reject Ho at the significance level 0.00. In another calculation result, the value of F is

2.63, since the F calculation greater than F table (0.05) = 2.53, so the conclusion

same with above, accept Ho. It means that Product, Price, Promotion, and Place

altogether affect the customer satisfaction of Chery QQ significantly.

The explanations of each t test are stated below:

1. Test of Product

Based on the calculation, the value of significance is 0.006 it is less than 0.05.

According to the hypothesis test, there is sufficient evidence to reject Ho. It means

that Product affecting the overall customer satisfaction of Chery QQ significantly.

2. Test of Price

Based on the calculation, the value of significance is 0.333 it is greater than 0.05.

According to the hypothesis test, there is sufficient evidence to reject Ho. It means

that Price does not affect the overall customer satisfaction of Chery QQ significantly.

55

3. Test of Promotion

Based on the calculation, the value of significance is 0.513 it is greater than 0.05.

According to the hypothesis test, there is sufficient evidence not to reject Ho. It

means that Promotion does not affect the overall customer satisfaction of Chery QQ

significantly.

4. Test of Place

Based on the calculation, the value of significance is 0.579 it is greater than 0.05.

According to the hypothesis test, there is no sufficient evidence not to reject Ho. It

means that Place does not affect the overall customer satisfaction of Chery QQ

significantly.

56

CHAPTER V

CONCLUSION AND RECOMMENDATIONS

5.1. Conclusions

The research has been conducted and lead to a clearer view about the problem.

Therefore, this chapter would be the answer of the research statement in the chapter

1. The conclusion was built based on the data analysis of the research and some

calculation in chapter IV. Through the observation and analysis that had been done,

the researcher able to answered the most crucial question in the statement problem.

Based on calculation result by the researcher, so that the researchers take the

conclusions:

1. The result from calculating by using multiple regression model in the R2 shown

value 0.132 it is mean how well the regression model fit the fact data 13.2% can

explain and describe the researcher data and the result is significant.

2. The result from calculating by using multiple regression models in the F table

shown significant value 0.042, it is mean all independent variables which are

Marketing Mix dimensions have a strong relation with dependent variable which

is the customer satisfaction of Chery QQ.

3. The result from calculating by using multiple regression models in the t table

shown one significant value there is 0.006 from independent variable which is

Product that has strong relationship with dependent variable which is the

customer satisfaction of Chery QQ.

4. The most important factor that causes the decline in sales of Chery QQ is the

product aspect. The quality of Chery QQ is not good, because the engine of

57

Chery QQ is not good and caused the car unstable. The feature of Chery is not

much, this cause the customer not interested to purchase this car.

5. The factor that needs to be improved to push the Chery QQ sales is the product

aspect. Chery should increase the feature and design of Chery QQ and keep

improving their quality.

5.2. Recommendation

In my conclusion, the decreasing sales of Chery QQ are caused by the quality of the

product, because the product of Chery QQ is not good, and these causes the

customers not satisfy to buy the car.This problems cause the sales of Chery QQ to

decrease. Based on the result of the analysis, Chery QQ should mantain the price of

product that had been well accepted by consumer. The weakness of Chery QQ is on

their product, then, the quality of Chery QQ should be increased to gaining more

customers.

1. For the product aspect, Chery QQ should increase the quality of the product.

Consumer look forward to the qualtiy of product in make decision to buy

something. If they look the quality of products are poor so they will not consider

to buy those product.

2. Chery QQ should add more feature for the product, it will make the customer

interest in purchasing the product.

3. The colour of Chery QQ car is not many they should make another colour for the

car. To give the customers option in chosing the colour of the car.

4. Chery QQ should refresh the design interior & exterior of the car. It will make

the customer not to get bored.

5. For further studies or research related to this topic, the researcher recommends

doing the research using other appropriate settings, variables, instruments, and

respondents.

58

REFERENCES

Books

Baumol, William J. & Blinder, Alan S. (2003). Economics: Principle and Policy 9th

Ed. South Western, USA: Thompson.

Clayton, G.E. (2008). Economics: Principles and Practices. McGraw-Hill.

Cooper, Donald R. and Schindler, Pamela. (2006). Marketing Research. Boston:

McGraw-Hill.

Cravens, David W. & Piercy, Nigel F. (2006), Strategic Marketing. Singapore:

McGraw-Hill.

Del I. Hawkins, Roger J. Best & Kenneth A. Coney (2004), Consumer Behavior:

Building Marketing Strategy, International Edition, McGraw Hill.

Hawkins and Looney (2004). Consumer Behavior 9th Ed. McGraw-Hill

J.Paul Peter, Jerry C. Olson (2003). Consumer behavior & Marketing Strategy (7th

Edition). Mcgraw-Hill.

Kotler, Philip & Armstrong, Gary. (2005). Principle of Marketing, USA: Prentice

Hall.

Kotler, Philip., Ang, Swee Hoon., Leong, Siew Meng. & Tan, Chin Tiong. (1999).

Marketing Management. Singapore: Prentice Hall.

McDaniel, Carl. (2006). Introduction to Marketing 9th Ed. Thomson South Western.

Naresh K. Malhotra. Marketing Research. Pearson Prentice-Hall International Inc,

1996

59

Nachiamas, C.F. & Nachiamas D. (2000). Research methods in the social sciences

(5th Ed.). London: St. Martins Press Inc.

Parkin, M., Powell, M., & Matthews, K. (2005). Economics (6th Ed.). London:

Pearson Education.

Santoso, Singgih. (1999). Buku Latihan SPSS Statistik Parametrik. PT. Elex Media

Komputindo, Jakarta.

Sekaran, Umar. (2003). Research Method For Business, (4th ed) USA: John Wiley.

Stern, Louis W. & El – Ansary, Adel I. (1996), Marketing Channels. New Jersey :

Prentice Hall.

Company

PT. Indomobil, Tbk.

Badan Pusat Statistik

Internet

http://www.chery-indomobil.com/qq.htm

http://chery-qq.blogspot.com/

www.wikipedia.com

60

APPENDICES

Product

Correlations

1 2 3 4 5 6 7 8 9 10 Total

1 Pearson Correlation 1 .803** .329 .597 .410 .613 .363 .552 .353 .062 .933**

Sig. (2-tailed) .005 .353 .069 .239 .060 .303 .098 .317 .866 .000

N 10 10 10 10 10 10 10 10 10 10 10

2 Pearson Correlation .803** 1 .224 .483 .245 .402 .113 .388 .488 -.383 .678*

Sig. (2-tailed) .005 .535 .158 .495 .250 .756 .268 .153 .274 .031

N 10 10 10 10 10 10 10 10 10 10 10

3 Pearson Correlation .329 .224 1 .554 -.456 .195 .477 -.342 .600 .343 .530

Sig. (2-tailed) .353 .535 .097 .185 .590 .163 .334 .067 .332 .115

N 10 10 10 10 10 10 10 10 10 10 10

4 Pearson Correlation .597 .483 .554 1 .000 .447 .525 -.164 .453 .142 .737*

Sig. (2-tailed) .069 .158 .097 1.000 .195 .120 .652 .189 .695 .015

N 10 10 10 10 10 10 10 10 10 10 10

5 Pearson Correlation .410 .245 -.456 .000 1 .328 -.308 .576 -.299 .157 .309

Sig. (2-tailed) .239 .495 .185 1.000 .355 .387 .082 .402 .666 .385

N 10 10 10 10 10 10 10 10 10 10 10

6 Pearson Correlation .613 .402 .195 .447 .328 1 -.061 .439 .431 -.139 .660*

Sig. (2-tailed) .060 .250 .590 .195 .355 .868 .205 .214 .703 .038

N 10 10 10 10 10 10 10 10 10 10 10

7 Pearson Correlation .363 .113 .477 .525 -.308 -.061 1 .073 -.074 .477 .500

Sig. (2-tailed) .303 .756 .163 .120 .387 .868 .841 .840 .164 .141

N 10 10 10 10 10 10 10 10 10 10 10

8 Pearson Correlation .552 .388 -.342 -.164 .576 .439 .073 1 -.241 -.027 .430

Sig. (2-tailed) .098 .268 .334 .652 .082 .205 .841 .503 .941 .215

61

N 10 10 10 10 10 10 10 10 10 10 10

9 Pearson Correlation .353 .488 .600 .453 -.299 .431 -.074 -.241 1 -.356 .398

Sig. (2-tailed) .317 .153 .067 .189 .402 .214 .840 .503 .313 .255

N 10 10 10 10 10 10 10 10 10 10 10

10 Pearson Correlation .062 -.383 .343 .142 .157 -.139 .477 -.027 -.356 1 .720

Sig. (2-tailed) .866 .274 .332 .695 .666 .703 .164 .941 .313 .468

N 10 10 10 10 10 10 10 10 10 10 10

Total Pearson Correlation .933** .678* .530 .737* .309 .660* .500 .430 .398 .720 1

Sig. (2-tailed) .000 .031 .115 .015 .385 .038 .141 .215 .255 .468

N 10 10 10 10 10 10 10 10 10 10 10

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

*. Correlation is significant at the 0.05 level (2-tailed).

Price

Correlations

1 2 3 4 5 6 7 8 9 10 Total

1 Pearson Correlation 1 .544 .447 .000 .597 .000 .453 .525 .554 .483 .737*

Sig. (2-tailed) .104 .195 1.000 .069 1.000 .189 .120 .097 .158 .015

N 10 10 10 10 10 10 10 10 10 10 10

2 Pearson Correlation .544 1 .451 .296 .823** .299 .548 .074 .218 .976** .693*

Sig. (2-tailed) .104 .191 .406 .003 .402 .101 .840 .545 .000 .026

N 10 10 10 10 10 10 10 10 10 10 10

3 Pearson Correlation .447 .451 1 .205 .613 .328 .431 -.061 .195 .402 .660*

Sig. (2-tailed) .195 .191 .569 .060 .355 .214 .868 .590 .250 .038

N 10 10 10 10 10 10 10 10 10 10 10

4 Pearson Correlation .000 .296 .205 1 .629 .130 -.062 .517 .107 .383 .551

Sig. (2-tailed) 1.000 .406 .569 .052 .720 .864 .126 .768 .274 .099

62

N 10 10 10 10 10 10 10 10 10 10 10

5 Pearson Correlation .597 .823** .613 .629 1 .410 .353 .363 .329 .803** .933**

Sig. (2-tailed) .069 .003 .060 .052 .239 .317 .303 .353 .005 .000

N 10 10 10 10 10 10 10 10 10 10 10

Pearson Correlation .000 .299 .328 .130 .410 1 -.299 -.308 -.456 .245 .309

Sig. (2-tailed) 1.000 .402 .355 .720 .239 .402 .387 .185 .495 .385

N 10 10 10 10 10 10 10 10 10 10 10

7 Pearson Correlation .453 .548 .431 -.062 .353 -.299 1 -.074 .600 .488 .398

Sig. (2-tailed) .189 .101 .214 .864 .317 .402 .840 .067 .153 .255

N 10 10 10 10 10 10 10 10 10 10 10

8 Pearson Correlation .525 .074 -.061 .517 .363 -.308 -.074 1 .477 .113 .500

Sig. (2-tailed) .120 .840 .868 .126 .303 .387 .840 .163 .756 .141

N 10 10 10 10 10 10 10 10 10 10 10

9 Pearson Correlation .554 .218 .195 .107 .329 -.456 .600 .477 1 .224 .530

Sig. (2-tailed) .097 .545 .590 .768 .353 .185 .067 .163 .535 .115

N 10 10 10 10 10 10 10 10 10 10 10

10 Pearson Correlation .483 .976** .402 .383 .803** .245 .488 .113 .224 1 .678*

Sig. (2-tailed) .158 .000 .250 .274 .005 .495 .153 .756 .535 .031

N 10 10 10 10 10 10 10 10 10 10 10

Total Pearson Correlation .737* .693* .660* .551 .933** .309 .398 .500 .530 .678* 1

Sig. (2-tailed) .015 .026 .038 .099 .000 .385 .255 .141 .115 .031

N 10 10 10 10 10 10 10 10 10 10 10

*. Correlation is significant at the 0.05 level (2-tailed).

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

63

Promotion

Correlations

1 2 3 4 5 6 7 8 9 10 Total

1 Pearson Correlation 1 -.544 .043 .288 .169 .239 .113 -.068 .029 -.617 .775

Sig. (2-tailed) .104 .905 .420 .641 .506 .756 .853 .937 .058 .286

N 10 10 10 10 10 10 10 10 10 10 10

2 Pearson Correlation -.544 1 .498 -.502 -.603 -.261 -.508 .282 -.422 .021 -.504

Sig. (2-tailed) .104 .143 .139 .065 .467 .134 .429 .224 .954 .138

N 10 10 10 10 10 10 10 10 10 10 10

3 Pearson Correlation .043 .498 1 -.185 -.656* -.246 .038 .090 -.615 -.339 -.182

Sig. (2-tailed) .905 .143 .609 .039 .494 .918 .805 .058 .338 .614

N 10 10 10 10 10 10 10 10 10 10 10

4 Pearson Correlation .288 -.502 -.185 1 .160 .188 .110 .185 .383 .128 .816**

Sig. (2-tailed) .420 .139 .609 .659 .602 .763 .609 .275 .724 .004

N 10 10 10 10 10 10 10 10 10 10 10

5 Pearson Correlation .169 -.603 -.656* .160 1 .039 -.177 .626 .052 .216 .685

Sig. (2-tailed) .641 .065 .039 .659 .915 .625 .053 .887 .549 .815

N 10 10 10 10 10 10 10 10 10 10 10

6 Pearson Correlation .239 -.261 -.246 .188 .039 1 .113 .101 .173 -.214 .559

Sig. (2-tailed) .506 .467 .494 .602 .915 .756 .780 .632 .552 .093

N 10 10 10 10 10 10 10 10 10 10 10

7 Pearson Correlation .113 -.508 .038 .110 -.177 .113 1 -.022 .432 -.113 .730

Sig. (2-tailed) .756 .134 .918 .763 .625 .756 .952 .212 .756 .317

N 10 10 10 10 10 10 10 10 10 10 10

8 Pearson Correlation -.068 .282 .090 .185 .626 .101 -.022 1 .135 -.271 .271

Sig. (2-tailed) .853 .429 .805 .609 .053 .780 .952 .710 .449 .449

N 10 10 10 10 10 10 10 10 10 10 10

9 Pearson Correlation .029 -.422 -.615 .383 .052 .173 .432 .135 1 .339 .704

Sig. (2-tailed) .937 .224 .058 .275 .887 .632 .212 .710 .338 .065

64

N 10 10 10 10 10 10 10 10 10 10 10

10 Pearson Correlation -.617 .021 -.339 .128 .216 -.214 -.113 -.271 .339 1 .029

Sig. (2-tailed) .058 .954 .338 .724 .549 .552 .756 .449 .338 .936

N 10 10 10 10 10 10 10 10 10 10 10

Total Pearson Correlation .775 -.504 -.182 .816** .685 .559 .730 .271 .704 .029 1

Sig. (2-tailed) .286 .138 .614 .004 .815 .093 .317 .449 .065 .936

N 10 10 10 10 10 10 10 10 10 10 10

*. Correlation is significant at the 0.05 level (2-tailed).

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

Place

Correlations

1 2 3 4 5 6 7 8 9 10 Total

1 Pearson Correlation 1 .863** .283 .509 .744* .691* .339 -.092 .470 .470 .901**

Sig. (2-tailed) .001 .427 .133 .014 .027 .338 .800 .171 .171 .000

N 10 10 10 10 10 10 10 10 10 10 10

2 Pearson Correlation .863** 1 .623 .358 .474 .371 .074 -.223 .268 .062 .675*

Sig. (2-tailed) .001 .054 .310 .166 .291 .838 .536 .454 .865 .032

N 10 10 10 10 10 10 10 10 10 10 10

3 Pearson Correlation .283 .623 1 .135 .000 -.203 -.149 .000 .124 -.248 .261

Sig. (2-tailed) .427 .054 .711 1.000 .573 .680 1.000 .732 .489 .467

N 10 10 10 10 10 10 10 10 10 10 10

4 Pearson Correlation .509 .358 .135 1 .541 .799** .354 .342 -.174 .361 .696*

Sig. (2-tailed) .133 .310 .711 .107 .006 .316 .334 .631 .305 .025

N 10 10 10 10 10 10 10 10 10 10 10

5 Pearson Correlation .744* .474 .000 .541 1 .696* .682* .038 .518 .518 .870**

Sig. (2-tailed) .014 .166 1.000 .107 .025 .030 .916 .125 .125 .001

N 10 10 10 10 10 10 10 10 10 10 10

65

6 Pearson Correlation .691* .371 -.203 .799** .696* 1 .413 .020 .192 .495 .756*

Sig. (2-tailed) .027 .291 .573 .006 .025 .235 .957 .595 .146 .011

N 10 10 10 10 10 10 10 10 10 10 10

7 Pearson Correlation .339 .074 -.149 .354 .682* .413 1 .554 .238 .238 .592

Sig. (2-tailed) .338 .838 .680 .316 .030 .235 .097 .509 .509 .071

N 10 10 10 10 10 10 10 10 10 10 10

8 Pearson Correlation -.092 -.223 .000 .342 .038 .020 .554 1 -.267 .218 .215

Sig. (2-tailed) .800 .536 1.000 .334 .916 .957 .097 .456 .545 .552

N 10 10 10 10 10 10 10 10 10 10 10

9 Pearson Correlation .470 .268 .124 -.174 .518 .192 .238 -.267 1 .383 .465

Sig. (2-tailed) .171 .454 .732 .631 .125 .595 .509 .456 .275 .176

N 10 10 10 10 10 10 10 10 10 10 10

10 Pearson Correlation .470 .062 -.248 .361 .518 .495 .238 .218 .383 1 .576

Sig. (2-tailed) .171 .865 .489 .305 .125 .146 .509 .545 .275 .081

N 10 10 10 10 10 10 10 10 10 10 10

Total Pearson Correlation .901** .675* .261 .696* .870** .756* .592 .215 .465 .576 1

Sig. (2-tailed) .000 .032 .467 .025 .001 .011 .071 .552 .176 .081

N 10 10 10 10 10 10 10 10 10 10 10

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

*. Correlation is significant at the 0.05 level (2-tailed).

66

Draft questionnaire before the validity & realibility test (Indonesian Version)

5 = Sangat Setuju 4 = setuju 3 = netral 2 = tidak setuju 1 = sangat tidak setuju

PRODUCT

1 Bentuk mobil Chery QQ tidak ketinggalan jaman, stylish, aerodinamis.

Nilai Anda

2 Kualitas mobil Chery QQ memuaskan

Nilai Anda

3 Features yang diberikan telah sesuai dengan harapan

Nilai Anda

4 Merk Chery QQ cukup dikenal masyarakat

Nilai Anda

5 Chery QQ memiliki pilihan jenis dan warna yang cukup menarik

Nilai Anda

6 Konsumsi bahan bakar Chery QQ effisien/irit

Nilai Anda

7 Mesin Chery QQ bandel, gesit

Nilai Anda

8 Suspensi Chery QQ empuk dan stabil

Nilai Anda

9 Warna dan design Chery QQ sangat menarik perhatian

Nilai Anda

10 Chery QQ memiliki beberapa variant atau jenis yang sangat menarik

Nilai Anda

67

HARGA

1 Harga Chery QQ sangat terjangkau

Nilai Anda

2 Harga jual kembali cukup stabil

Nilai Anda

3 Harga Chery QQ sebanding dengan qualitas

Nilai Anda

4 Program cicilan yang di tawarkan cukup menarik

Nilai Anda

5 Harga service Chery QQ cukup terjangkau

Nilai Anda

6 Discount yang diberikan cukup menarik

Nilai Anda

7 Proses pelunasan Chery QQ sangat mudah

Nilai Anda

8 Harga Chery QQ sangat stabil

Nilai Anda

9 Chery QQ sering memberikan promo yang menarik

Nilai Anda

10 Harga Chery QQ sangat kompetitiv

Nilai Anda

68

PROMOSI

1 Promosi Chery QQ memikat masyarakt

Nilai Anda

2 Sering melihat iklan, banner, dll tentang chery QQ

Nilai Anda

3 Iklan dan promosi Chery QQ sangat menarik

Nilai Anda

4 Iklan Chery QQ sangat menarik

Nilai Anda

5 Harga promosi yang diberikan perusahaan menarik perhatian

Nilai Anda

6 Chery QQ memasarkan produknya dengan baik

Nilai Anda

7 Chery QQ sering mengikuti pameran mobil

Nilai Anda

8 Billboard, banner, dan spanduk Chery QQ sering terlihat di jalan

Nilai Anda

9 Chery QQ gencar mempromosikan produknya

Nilai Anda

10 Advertising Chery QQ sanngat menarik perhatian

Nilai Anda

TEMPAT

1 Bengkel Chery QQ mudah dijangkau

Nilai Anda

69

2 Suku Cadang mudah didapat dan harga murah

Nilai Anda

3 Pusat penjualan dan perawatan tidak sulit ditemui

Nilai Anda

4 Show room Chery QQ berada di kota-kota besar, sehingga mudah untuk ditemui

Nilai Anda

5 Service Chery QQ tidak memakan waktu yang lama

Nilai Anda

6 Tempat service Chery berada di kota-kota besar, sehingga mudah dijangkau

Nilai Anda

7 Pusat penjualan dan perawatan tersebar di seluruh pelosok Indonesia

Nilai Anda

8 Chery QQ memiliki bengkel yang tersebar di seluruh kota besar di Indonesia

Nilai Anda

9 Customer Chery QQ dapat dengan mudah menemukan tempat service mobil tersebut

Nilai Anda

10 Chery QQ memudahkan customer dalam menemukan tempat service

Nilai Anda

Overall

1 Secara keseluruhan Chery QQ sangat nyaman dan saya puas menggunakan Chery QQ

Nilai Anda

70

Valid Questionnaire (Indonesian Version)

Berilah nilai dari 1 - 5 dari pertanyaan berikut. 5 = Sangat Setuju 4 = setuju 3 = netral 2 = tidak setuju 1 = sangat tidak setuju

PRODUCT

1 Bentuk mobil Chery QQ tidak ketinggalan jaman, stylish, aerodinamis.

Nilai Anda

2 Kualitas mobil Chery QQ memuaskan

Nilai Anda

3 Merk Chery QQ cukup dikenal masyarakat

Nilai Anda

4 Konsumsi bahan bakar Chery QQ effisien/irit

Nilai Anda

5 Chery QQ memiliki beberapa variant atau jenis yang sangat menarik

Nilai Anda

HARGA

1 Harga Chery QQ sangat terjangkau

Nilai Anda

2 Harga jual kembali cukup stabil

Nilai Anda

3 Harga Chery QQ sebanding dengan qualitas

Nilai Anda

4 Harga service Chery QQ cukup terjangkau

Nilai Anda

5 Harga Chery QQ sangat kompetitiv

Nilai Anda

71

PROMOSI

1 Promosi Chery QQ memikat masyarakt

Nilai Anda

2 Iklan Chery QQ sangat menarik

Nilai Anda

3 Harga promosi yang diberikan perusahaan menarik perhatian

Nilai Anda

4 Chery QQ sering mengikuti pameran mobil

Nilai Anda

5 Chery QQ gencar mempromosikan produknya

Nilai Anda

TEMPAT

1 Bengkel Chery QQ mudah dijangkau

Nilai Anda

2 Suku Cadang mudah didapat dan harga murah

Nilai Anda

3. Show room Chery QQ berada di kota-kota besar, sehingga mudah untuk ditemui

Nilai Anda

4 Service Chery QQ tidak memakan waktu yang lama

Nilai Anda

5 Tempat service Chery berada di kota-kota besar, sehingga mudah dijangkau

Nilai Anda

72

Overall

1 Secara keseluruhan Chery QQ sangat nyaman dan saya puas menggunakan Chery QQ

Nilai Anda

Draft questionnaire before the validity & realibility test (English Version)

5 = Strongly Agree 4 = Agree 3 = Neutral 2 = Disagree 1 = Strongly Disagree

PRODUCT

1 Chery QQ car shape is not outdated, stylish and aerodynamics.

Your score

2 Quality of Chery QQ car is satisfactory

Your score

3 Features provided in accordance with expectations

Your score

4 Brand Chery QQ is known to public.

Your score

5 Chery QQ have a choice of types and colors are quite attractive

Your score

6 Chery QQ consumption of fuel is efficient / economical

Your score

7 Chery QQ have a good quality of engine

Your score

8 The Chery QQ Suspension is soft and stable

Your score

73

9 The Chery QQ color and design is very attractive

Your score

10 Chery QQ has several variants or types which are very interesting

Your score

PRICE

1 The price of Chery QQ is affordable

Your score

2 The Re-sale price of Chery QQ is stable

Your score

3 The price of Chery QQ is comparable with its quality

Your score

4 The installment promotion is quite attractive

Your score

5 The service price of Chery QQ is quite affordable

Your score

6 Discount given is quite attractive

Your score

7 The payment process is very easy

Your score

8 The price of Chery QQ is stable

Your score

9 Chery QQ often give interesting promo

Your score

10 The price of Chery QQ is competitive

Your score

74

PROMOTION

1 Promotion of Chery QQ is attractive

Your score

2 Often see the banner and advertising of Chery QQ

Your score

3 Chery QQ have an inetersting promotion

Your score

4 Chery QQ have an interesting advertisement

Your score

5 Attractive promotion price

Your score

6 Chery QQ have a good product promotion strategy

Your score

7 Chery QQ often partcipate in a car show

Your score

8 Billboard and banner of Chery QQ is shown on the road

Your score

9 Chery QQ force their product promotion

Your score

10 The advertising of Chery QQ is interesting

Your score

PLACE

1 The service center of Chery QQ is reachable

Your score

75

2 Spareparts of Chery QQ is easily available and cheap

Your score

3 Sales and maintenance center is not difficult to find

Your score

4 Chery QQ showrrom located in major cities, making it easy to find

Your score

5 Chery QQ service does not take too long time

Your score

6 Chery service places in big cities, so its easy to reach

Your score

7 Sales and maintenance center spread all over Indonesia

Your score

8 Chery QQ have a garage that spread across major city in Indonesia

Your score

9 Customers Chery QQ can easily find the service place fpr the car

Your score

10 Chery QQ facilitate customers in finding the service place

Your score

Overall

1 Overall Chery QQ is very comfortable , and I am comfortable for using this car

Your score

76

Valid Questionnaire (Indonesian Version)

Berilah nilai dari 1 - 5 dari pertanyaan berikut. 5 = Sangat Setuju 4 = setuju 3 = netral 2 = tidak setuju 1 = sangat tidak setuju

PRODUCT

1 Bentuk mobil Chery QQ tidak ketinggalan jaman, stylish, aerodinamis.

Nilai Anda

2 Kualitas mobil Chery QQ memuaskan

Nilai Anda

3 Merk Chery QQ cukup dikenal masyarakat

Nilai Anda

4 Konsumsi bahan bakar Chery QQ effisien/irit

Nilai Anda

5 Chery QQ memiliki beberapa variant atau jenis yang sangat menarik

Nilai Anda

HARGA

1 Harga Chery QQ sangat terjangkau

Nilai Anda

2 Harga jual kembali cukup stabil

Nilai Anda

3 Harga Chery QQ sebanding dengan qualitas

Nilai Anda

77

4 Harga service Chery QQ cukup terjangkau

Nilai Anda

5 Harga Chery QQ sangat kompetitiv

Nilai Anda

PROMOSI

1 Promosi Chery QQ memikat masyarakt

Nilai Anda

2 Iklan Chery QQ sangat menarik

Nilai Anda

3 Harga promosi yang diberikan perusahaan menarik perhatian

Nilai Anda

4 Chery QQ sering mengikuti pameran mobil

Nilai Anda

5 Chery QQ gencar mempromosikan produknya

Nilai Anda

TEMPAT

1 Bengkel Chery QQ mudah dijangkau

Nilai Anda

2 Suku Cadang mudah didapat dan harga murah

Nilai Anda

1. Show room Chery QQ berada di kota-kota besar, sehingga mudah untuk ditemui

Nilai Anda

4 Service Chery QQ tidak memakan waktu yang lama

Nilai Anda

78

5 Tempat service Chery berada di kota-kota besar, sehingga mudah dijangkau

Nilai Anda

Overall

1 Secara keseluruhan Chery QQ sangat nyaman dan saya puas menggunakan Chery QQ

Nilai Anda

Valid Questionnaire (English Versions\)

5 = Strongly Agree 4 = Agree 3 = Neutral 2 = Disagree 1 = Strongly Disagree

PRODUCT

1 Chery QQ car shape is not outdated, stylish and aerodynamic

Your Score

2 Quality of Chery QQ car is satisfactory

Your Score

3 Brand Chery QQ is known to public

Your Score

4 Chery QQ consumptionof fuel is efficient / economical

Your Score

5 Chery QQ has several variants or types which are interesting

Your Score

PRICE

1 The price of Chery QQ is affordable

Your Score

2 The re-sale price of Chery QQ is stable

79

Your Score

3 The price of Chery QQ is comparable with its quality

Your Score

4 The service price of Chery QQ is quite affordable

Your Score

5 The price of Chery QQ is competitive

Your Score

PROMOTION

1 Pronotion of Chery QQ is attractive

Your Score

2 Chery QQ have an interesting advertisement

Your Score

3 Attractive promotion price

Your Score

4 Chery QQ often participate in a car show

Your Score

5 Chery QQ force their product promotion

Your Score

PLACE

1 The service center of Chery QQ is reachable

Your Score

2 Spareparts of chery QQ is easily avalaible and cheap

Your Score

80

3 Chery QQ's showroom located in major cities, making it easy to find

Your Score

4 Chery QQ service does not take too long time

Your Score

5 Chery QQ service places in a big cities, so it easy to reach

Your Score

Overall

1 Overal Chery QQ is very comfortable and I am comfortable for using this car

Your Score

RAW DATA PRODUCT VARIABLE x1 x2 x3 x4 x5 1 2 2 3 2 3 2 1 3 4 3 3 3 2 2 3 3 2 4 3 2 3 4 4 5 2 3 4 2 3 6 2 1 1 1 1 7 3 3 2 5 1 8 4 4 2 1 1 9 2 1 2 2 2 10 1 5 2 1 1 11 4 5 1 2 3 12 2 4 2 1 2 13 5 2 2 3 2 14 2 3 2 1 2 15 3 1 2 2 3 16 2 2 2 2 2 17 1 2 1 1 2 18 2 4 2 3 2

81

19 3 4 2 2 2 20 4 4 2 1 2 21 2 3 1 1 4 22 1 3 4 2 3 23 2 4 3 2 2 24 3 2 2 2 2 25 4 2 2 4 2 26 2 2 2 2 1 27 4 2 3 2 2 28 5 3 4 5 4 29 2 3 4 3 4 30 2 2 4 3 2 31 3 4 2 2 4 32 2 2 4 3 3 33 4 4 3 2 2 34 2 2 3 2 2 35 1 3 3 2 2 36 2 2 3 2 2 37 4 1 1 2 1 38 2 2 2 1 1 39 1 2 1 1 1 40 1 1 1 3 2 41 4 2 2 2 1 42 2 3 3 2 2 43 2 2 3 3 2 44 3 2 1 4 3 45 2 5 4 3 3 46 2 3 4 2 2 47 2 3 3 2 2 48 4 3 2 1 1 49 3 1 2 3 3 50 2 4 3 3 2 51 3 1 2 2 4 52 3 3 3 3 3 53 1 2 2 2 1 54 1 2 2 2 2 55 2 3 3 1 2 56 2 3 2 3 1

82

57 3 2 3 2 2 58 4 3 3 1 1 59 2 2 3 2 1 60 2 2 2 1 1 61 3 2 2 1 3 62 2 2 2 1 2 63 2 3 1 1 4 64 3 3 2 1 1 65 1 3 2 2 2 66 4 2 2 1 1 67 3 2 1 1 1 68 2 2 1 1 3 69 1 1 3 2 2 70 1 1 3 2 3 71 1 1 1 2 2 72 1 1 2 2 3 73 2 3 1 2 3 74 2 1 1 1 3

RAW DATA PRICE VARIABLE x1 x2 x3 x4 x5 1 5 4 4 1 4 2 5 5 4 4 4 3 5 4 5 4 4 4 4 4 5 3 3 5 5 4 3 2 3 6 4 4 4 2 3 7 3 3 3 2 3 8 2 2 2 2 2 9 4 4 4 3 2 10 5 5 5 2 4 11 5 4 3 4 5 12 5 4 4 4 4 13 4 4 5 5 4 14 5 4 3 5 4 15 4 5 4 3 5 16 3 4 4 4 4

83

17 3 4 5 3 3 18 4 5 4 4 3 19 4 4 5 4 3 20 3 4 3 3 4 21 5 4 3 4 3 22 4 4 3 3 2 23 4 3 4 4 3 24 4 4 4 3 3 25 4 3 3 4 3 26 4 3 3 4 4 27 5 4 4 4 2 28 4 4 5 4 3 29 4 3 3 3 2 30 4 4 4 4 3 31 4 5 4 4 4 32 5 3 3 5 5 33 4 3 3 4 4 34 4 5 3 3 3 35 4 5 4 3 5 36 3 3 4 3 4 37 3 3 4 4 4 38 4 4 4 5 3 39 4 4 5 2 4 40 4 3 4 4 5 41 3 4 4 2 4 42 4 2 5 4 3 43 4 3 4 5 4 44 2 4 3 3 4 45 4 3 5 2 4 46 5 4 2 4 5 47 5 3 3 3 4 48 4 4 4 2 5 49 3 3 4 5 5 50 3 4 5 4 4 51 4 5 5 4 4 52 2 3 3 5 4 53 3 3 3 4 5 54 3 3 2 4 2

84

55 4 4 4 5 4 56 3 4 2 3 4 57 3 2 3 3 4 58 3 3 3 3 4 59 4 3 4 3 3 60 3 4 4 4 4 61 4 3 3 3 5 62 2 4 2 4 4 63 5 4 4 5 5 64 5 4 4 3 4 65 3 4 5 4 5 66 3 4 2 5 4 67 4 3 3 3 3 68 2 4 4 5 4 69 4 5 4 2 3 70 3 3 4 5 4 71 4 3 3 4 1 72 5 5 4 4 4 73 4 2 3 3 5 74 5 4 5 5 4

RAW DATA PROMOTION VARIABLE x1 x2 x3 x4 x5 1 2 1 1 1 1 2 2 2 1 1 2 3 1 1 1 2 4 4 2 2 2 2 2 5 2 1 2 1 2 6 2 2 2 2 2 7 3 2 3 2 2 8 2 2 1 2 3 9 3 1 2 1 1 10 2 2 1 2 2 11 1 1 1 1 1 12 2 2 2 2 2 13 1 1 1 1 1 14 1 1 1 1 1

85

15 2 2 2 2 2 16 1 2 2 1 1 17 1 2 2 2 2 18 2 2 1 1 1 19 1 2 2 2 2 20 1 1 1 1 1 21 1 1 1 2 2 22 2 2 2 2 1 23 1 2 2 2 1 24 2 2 2 2 2 25 1 1 1 1 1 26 1 2 2 2 2 27 1 1 2 1 2 28 1 2 2 1 1 29 1 2 1 2 2 30 1 1 2 2 2 31 1 1 1 1 2 32 2 2 2 2 2 33 2 1 1 1 2 34 2 2 2 2 2 35 1 1 1 1 1 36 2 2 2 2 2 37 1 2 1 1 2 38 1 1 1 1 2 39 3 2 2 2 2 40 1 1 2 2 2 41 3 2 2 2 1 42 2 2 3 3 2 43 2 2 2 1 1 44 2 3 2 2 2 45 2 1 1 3 3 46 2 2 2 2 2 47 1 2 1 2 2 48 3 1 2 1 2 49 2 2 1 1 1 50 2 1 1 2 3 51 1 1 1 2 2 52 2 2 2 3 2

86

53 2 1 1 1 2 54 3 2 3 2 2 55 1 1 2 2 3 56 2 2 1 1 1 57 2 2 1 1 2 58 2 2 1 1 1 59 2 1 2 2 2 60 1 2 2 2 3 61 2 2 2 1 2 62 2 1 1 1 2 63 2 2 2 2 3 64 3 2 2 1 1 65 3 2 2 3 2 66 2 2 1 1 2 67 3 2 2 3 1 68 1 2 2 1 2 69 2 1 1 2 3 70 2 2 2 2 2 71 2 3 3 3 1 72 2 3 3 2 2 73 2 1 1 1 1 74 2 2 2 2 2

RAW DATA PLACE VARIABLE x1 x2 x3 x4 x5 1 4 4 4 2 4 2 3 4 4 1 3 3 4 4 4 4 4 4 4 4 3 2 3 5 2 3 4 1 2 6 3 4 3 2 2 7 2 2 2 2 3 8 1 1 2 1 1 9 2 2 2 2 4 10 5 4 2 2 5 11 2 3 4 2 3 12 4 3 2 2 3

87

13 2 3 4 4 5 14 3 2 4 5 3 15 3 3 4 4 3 16 4 3 3 3 4 17 4 3 3 3 3 18 3 4 5 3 3 19 3 3 3 2 2 20 4 3 2 3 3 21 4 3 3 4 3 22 3 3 2 2 3 23 3 4 4 3 4 24 3 3 2 2 3 25 4 4 3 3 3 26 3 2 2 2 3 27 3 4 4 3 3 28 3 4 2 2 2 29 3 3 3 4 4 30 4 3 2 2 3 31 3 2 2 3 4 32 4 3 3 2 3 33 2 2 3 3 4 34 3 4 3 4 3 35 3 3 2 2 2 36 3 4 4 4 3 37 3 3 2 2 2 38 3 3 4 3 3 39 3 2 2 2 3 40 2 2 2 3 4 41 3 3 4 2 4 42 4 4 3 3 3 43 4 3 3 3 3 44 3 3 3 4 4 45 4 3 4 4 4 46 4 4 3 3 3 47 5 3 4 5 5 48 5 5 4 4 4 49 4 5 4 4 3 50 3 5 5 4 3

88

51 3 5 5 5 4 52 4 3 3 4 5 53 2 2 3 3 4 54 4 4 5 5 4 55 3 4 4 5 3 56 3 3 3 3 5 57 4 2 3 3 5 58 3 3 3 4 4 59 3 4 3 4 3 60 4 3 4 5 3 61 3 3 3 4 3 62 3 3 3 4 3 63 4 3 5 4 4 64 4 2 3 3 3 65 3 5 5 3 4 66 4 3 3 2 3 67 3 3 2 5 3 68 3 4 4 5 3 69 2 5 5 3 5 70 3 4 5 5 5 71 4 5 5 3 4 72 3 5 5 3 3 73 2 1 1 1 1 74 2 2 2 2 2

Model Summaryb

Model R R Square Adjusted R Square

Std. Error of the

Estimate Durbin-Watson

1 .364a .132 .082 .69177 1.062

a. Predictors: (Constant), x4, x3, x1, x2

b. Dependent Variable: Dependent

89

ANOVAb

Model Sum of Squares df Mean Square F Sig.

1 Regression 5.034 4 1.259 2.630 .042a

Residual 33.020 69 .479

Total 38.054 73

a. Predictors: (Constant), x4, x3, x1, x2

b. Dependent Variable: Y

Coefficientsa

Model

Unstandardized Coefficients

Standardized

Coefficients

t Sig. B Std. Error Beta

1 (Constant) 1.915 .681 2.814 .006

x1 .470 .166 .328 2.841 .006

x2 .155 .159 .116 .975 .333

x3 .116 .177 .074 .657 .513

x4 -.071 .128 -.066 -.557 .579

a. Dependent Variable: Y

90

91