i

THE IMPACTS OF KOREAN WAVE TOWARDS

INDONESIAN PEOPLE’S DECISIONS IN BUYING

KOREAN PRODUCTS: IMPLEMENTATION OF THE

MODIFICATION OF THEORY OF PLANNED BEHAVIOR

MASTER THESIS Submitted in Partial Fulfillment

of the Requirement for the Degree of

Magister Manajemen

Ariella Octaviany Kusbianto

912011014

GRADUATE PROGRAM

FACULTY OF ECONOMICS AND BUSINESS

SATYA WACANA CHRISTIAN UNIVERSITY

SALATIGA

2013

ii

iii

iv

Do what others don’t do,

And

You’ll get what others won’t

get

v

ACKNOWLEDGMENTS Give thanks unto my amazing Lord, Jesus, for His guidance day by

day, especially in doing this master thesis. I realize that there are a

lot of obstacles that I cannot mention one by one during this thesis

writing process. But thank God, because of His guidance, wisdom,

love, and patience, finally I could finish it. Now I can accomplish

one of the most important moments in my life: making my parents

happy and proud of me by achieving my Master’s Degree. I believe

that He always plans something good to me although I always

grumbled and complained during my study in MM UKSW, and even

for my future which is still a mystery for me.

Also, I would like to give special thanks to:

1. My dad and mom, Ir. Edy Kusbianto and drg. Lany Setiawati

Salamoon who keep supporting me financially and morally. Thank

you for your love, care, and patience for me. I hope you can be

proud of me, although I know that my current achievements are

still unequal to your struggles and “difficulties” in raising such a

stubborn and fragile daughter like me. My sacrifice and struggles

during my study in MM UKSW is just a piece of cake compared to

your love.

2. My supervisor, Prof. Dr. Ir. Sony Heru Priyanto, MM. Many

thanks for you, Prof. Thanks for your dedication and patience in

vi

teaching and guiding me since August last year until I finished

my thesis. I know you were very busy with your work, but you

always give me some time to have consultations.

3. Prof Christantius Dwiatmadja, SE., ME., Ph.D, the chief of

Magister Manajemen program in UKSW, Salatiga.

4. All of the lecturers in MM UKSW, Salatiga. Thank you for the

knowledge and motivations you shared. I believe it will be useful

for my future.

5. Mbak Ira Yuliany who always helped me during my registration

until my graduation. Sorry if I often disturb you, Mbak.

6. My grandma, Emak Bik (Widiani Kusbianto). Mak, thank you for

your love and care. Also many thanks for delicious food you

cooked for me. You were always proud of me, so now I hope I can

make you proud of me even more than before.

7. My grandpas and grandma in Heaven: Engkong Anwar Kusbianto,

Engkong Bintoro Salamoon, Emak Tamtania. Although you are

already in Heaven, I believe that you always prayed for my

success.

8. My best friends in MM: Melissa Johan and Lia Yohana. Thank you

for your helps, friends.

9. My best friends in high school: Elenia Dwi (Ele), Yasmin

Tjondropurnomo (Yasmin), Novita Febriana (Nono), Stevani Agvia

(Tep), Felicia Yolanda (Phe2), and Intan Permata Sari (Tan2). We

vii

studied separately, but I know that our friendship can’t be

separated. Wish all the best for your studies and careers, Gals:)

10. My dearest auntie and uncle, Iik Inawati Salamoon and Oom

Timotius Agus Setiawan. You have been my 2nd parents. Thank’s

for loving and supporting me like your own daughter.

11. My little brother, Aloysius Christian Kusbianto (Loy) and my

dearest cousin, Christopher Felix Setiawan. My little Bros, thank’s

a lot for all of your supports.

12. My beloved one, Nathaniel Tirta Adiatma, S.T, Dipl.-Ing. (Koko

Nathan). Koko, thank you so much for all; for your love, care,

advice, suggestions, and supports. For me, you are God’s angel

who always makes my world become so colorful. Let’s wait for the

day when HE unites us to be one flesh. Amin.

13. My boarding house friends: Veronica Dewi and Stevani Vega Lia,

SE. Thank you for being my cheerful and caring “housemates”.

Hehehehe..

14. Mikha Witama, thank you for helping me collecting my data, so

that I can collect my data quickly. It really beneficial for me.

15. My brothers and sisters in Christ in GKI Karangsaru, Semarang.

Together, we serve GOD!

A.O.K.

viii

Abstract

This study is aimed to find out the impacts of Korean wave towards Indonesian people’s decisions in buying Korean products by implementing the modification of Theory of Planned Behavior (TPB). As Korean wave have spreading worldwide, there have been studies about its impacts in many countries in Asia and other continents. There are a lot of evidences that Korean wave positively affects South Korean economic condition. However, there are still limited study about the impacts of Korean wave in Indonesia, especially its effects towards the sales of Korean products in Indonesia. To deal with this

topic, The Theory of Planned Behavior was modified to be the model of this study.

This study used questionnaires as the primary data. The questionnaires were distributed in GKI Karangsaru, Semarang and also uploaded in social media (Facebook). Most respondents were the members of “Komunitas Make Up and Beauty” and “Indonesian Beauty Blogger” groups. Then, the data was analyzed by using AMOS 18.

The results obtained are as follows: (1) Korean wave significantly affects Attitude, (2) Attitude significantly affects Behavioral Intention, (3) Korean wave does not significantly affect Subjective Norms, (4) Subjective Norms significantly affects Behavioral Intention, (5) Korean wave does not significantly affect Perceived Behavioral Control, (6) Perceived Behavioral Control significantly affects Behavioral Intention, (7) Perceived Behavioral Control (PBC) indirectly affects Behavior, (8) Actual Control significantly affects Perceived Behavioral Control, (9) Actual Control indirectly affects Behavior, and (10) Behavioral Intention significantly affects Behavior.

Keywords: Korean wave, The Theory of Planned Behavior

(TPB), Attitude, Subjective Norms, Perceived Behavioral Control, Actual Behavioral Control/Actual Control, Behavioral Intention/Intention, Behavior

ix

Table of Content

Title ................................................................................................... i Approval ........................................................................................... ii Copyright Statement ........................................................................ iii Motto ................................................................................................ iv Acknowledgement ............................................................................. v Abstract .......................................................................................... viii Table of Content .............................................................................. ix

List of Figures .................................................................................. xi List of Tables .................................................................................. xii List of Appendices ...........................................................................xiii Chapter I Introduction ...................................................................... 1 1.1 Background of the Study ............................................................ 1 1.2 Statement of Problem .................................................................. 7 1.3 Research Questions .................................................................... 7 1.4 Objective of the Study ................................................................. 9 1.5 Scope of the Study .................................................................... 11 Chapter II Review of Literature ....................................................... 13 2.1 Theoretical Framework: The Theory of Planned Behavior .......... 13 2.1.1 Korean Wave ........................................................................ 14 2.1.2 Attitude ............................................................................... 15 2.1.3 Subjective Norms ................................................................. 16 2.1.4 Perceived Behavioral Control ............................................... 17 2.1.5 Actual Behavioral Control .................................................... 18 2.1.6 Behavioral Intention ............................................................ 18 2.1.7 Behavior .............................................................................. 19 2.2 Hypotheses ............................................................................... 20 2.2.1 Korean wave towards Attitudes and Attitudes towards

Behavioral Intention ............................................................. 21 2.2.2 Korean wave towards Subjective Norms and Subjective Norms

towards Behavioral Intention ................................................ 22 2.2.3 Korean wave towards Perceived Behavioral Control, Perceived

Behavioral Control toward Behavioral Intention, and Perceived Behavioral Control toward Behavior ..................................... 25

2.2.4 Actual Control towards Perceived Behavioral Control ........... 27 2.2.5 Actual Control towards Behavior.......................................... 28 2.2.6 Behavioral Intention towards Behavior ................................ 29

x

Chapter III Methodology .................................................................. 31 3.1 Type and Source of the Data ..................................................... 31 3.2 Variables .................................................................................. 31 3.3 Data Collection Methods ........................................................... 31 3.4 Operational Definition and the Measurements .......................... 33 3.5 Technique of Data Analysis ....................................................... 37 Chapter IV Results........................................................................ 39 4.1 Demographic Data .................................................................... 39 4.1.1 Gender ................................................................................... 39 4.1.2 Age ........................................................................................ 41 4.1.3 Job ........................................................................................ 43 4.1.4 Education .............................................................................. 45

4.1.5 Income (per month ................................................................. 47 4.1.6 Expenses (per month ............................................................. 49 4.2 SEM Analysis ............................................................................ 51 Chapter V Discussion .................................................................. 55 Chapter VI Conclussion .................................................................. 65 6.1 Summary ................................................................................ 65 6.2 Theoretical Implication ........................................................... 68 6.3 Managerial Implication ........................................................... 68 6.4 Limitations and Suggestions for Further Researches .............. 69 References ...................................................................................... 71 Appendices....................................................................................77

xi

List of Figures

Figure 1. The Theory of Planned Behavior (Ajzen, 2006) ............................ 13

Figure 2. Korean wave and The Theory of Planned Behavior ...................... 20

Figure 3. The model of the study using AMOS (the Korean wave in TPB

model .............................................................................. 38

Figure 4. Demographic Data: Gender ........................................................ 39 Figure 5. Demographic Data: Age ............................................................. 41

Figure 6. Demographic Data: Job ............................................................. 43

Figure 7. Demographic Data: Education ................................................... 45

Figure 8. Demographic Data: Income/Allowance (per month ..................... 47

Figure 9. Demographic Data: Expenses (per month ................................... 49 Figure 10. The new model according to the results of the study ................. 54

xii

List of Tables

Table 1. The effects of Korean wave toward some Asian countries ................ 3

Table 2. Measurements ............................................................................ 33

Table 3. The average of the respondents’ scores (Gender) .......................... 40

Table 4. The average of the respondents’ scores (Age) ................................ 42

Table 5. The average of the respondents’ scores (Occupation) .................... 44 Table 6. The average of the respondents’ scores (Education) ...................... 46

Table 7. The average of the respondents’ scores (Income) .......................... 48

Table 8. The average of the respondents’ scores (Expenses) ....................... 50

Table 9. The results of the data analyzed by SEM (AMOS 18) .................... 51

xiii

List of Appendices Appendix A : Questionnaire (English version ................................. 77 Appendix B : Questionnaire (Indonesian version ........................... 83 Appendix C : Raw Data #1: Understanding towards Korean Wave . 90 Appendix D : Raw Data #2: Frequency in seeing/listening/looking

for any elements of Korean wave .............................. 93

Appendix E : Raw Data #3: Attitude (At) ........................................ 96 Appendix F : Raw Data #4: Subjective Norms (SN) ........................ 99 Appendix G : Raw Data #5: Perceived Behavioral Control (PBC) ... 102 Appendix H : Raw Data #6: Actual Behavioral Control (AC) ......... 105 Appendix I : Raw Data #7: Behavioral Intention (Int) .................. 108 Appendix J : Raw Data #8: Behavior (B) ...................................... 111 Appendix K : Additional Questions .............................................. 114