The Influence of Marketing Mix (7p’s) Towards
Transcript of The Influence of Marketing Mix (7p’s) Towards
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The Influence of Marketing Mix (7p’s) Towards
President University Student Buying Decision
(Case at KFC Lippo Cikarang Mall)
By
Wisnu Setiawan Lingga
ID no. 014201000169
A skripsi presented to the
Faculty of Business President University
In partial fulfillment of the requirements for Bachelor Degree in Economic Major in Management
February 2014
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PANEL OF EXAMINERS APPROVAL SHEET
The Panel of Examiners declare that the skripsi entitled “The
influence of marketing mix (7p’s) Towards President University
Student Buying Decision (Case at KFC Lippo cikarang Mall)”
that was submitted by Wisnu Setiawan Lingga majoring in
International Business from the Faculty of Business was
assessed and approved to have passed the Oral Examinations on
20 February 2014
Vinsensius Jajat Kristanto SE., MM., MBA.
Chair - Panel of Examiners
Ir. Yunita Ismail Masjud, M. Si
Examiner I
Dra. Genoveva, MM
Examiner II
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SKRIPSI ADVISER
RECOMMENDATION LETTER
This skripsi entitle “The influence of marketing mix (7p’s) Towards
President University Student Buying Decision (Case at KFC Lippo
cikarang Mall)” prepared and submitted by Wisnu Setiawan Lingga in
partial fulfillment of the requirement for the degree of Economic in the
Faculty of Business has been reviewed and found to have satisfied the
requirement for a skripsi fit to be examined. I therefore recommend this
skripsi for Oral Defense.
Cikarang, Indonesia, 20 February 2014
Acknowledged by, Recommended by,
Vinsensius Jajat Kristanto SE., MM., MBA. Dra. Genoveva,MM
Head, Management Study Program Advisor
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DECLARATION OF ORIGINALITY
I declare that this skripsi, entitled “The influence of marketing mix
(7p’s) Towards President University Student Buying Decision (Case at
KFC Lippo cikarang Mall)” 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, 20 February 2014
Wisnu Setiawan Lingga
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ABSTRACT
Fastfood is very famous for teenager today. Nowadays, lots of franchises of
fastfoods compete in Indonesia market. This study analyzes the effect of marketing
mix (product, price, place, promotion, people, process, and physical evidence)
towards President University Student Buying Decision (Case at KFC Lippo
cikarang Mall). This research seeks to find out the most dominant factor of
Marketing Mix (7p’s) influence to the purchase decision in KFC Lippo cikarang.
The methods of data collection are interviews, questionnaires, and literature.
Methods of analysis are descriptive analysis, classical regression, and multiple
linear Regression. From the calculation of the multiple linear regression, it can be
said that some variables from marketing mix have a significant influence on
purchasing decisions. According to t test, the researcher found that variable
product, People, and the Process was significant influence to Buying Decision.
While f test to test the simultaneously of all variables obtained f value was 48.694.
Coefficient determination (R2) of 0.691, it meant that 69,1% of purchasing
decision could be explained by marketing mix (7p’s). Meanwhile, other part of
30, 9% of purchasing decision was influenced by other variables, which were not
included in this research.
Keywords: Marketing mix, product, price, place, promotion, people, process,
physical evidence, and buying decision.
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ACKNOWLEDGEMENT
From the start the researcher doing this skripsi until finish, the research found many
problems and difficultness during the process. The researcher will be helpless if
there are no friends, family, adviser and God who support and helping the
researcher until this skripsi finish and hopefully can be useful for the future.
First of all, researcher want to give big thanks to God who always make researcher
up when researcher down. And always believe that researcher can do it in the dead
time that almost touches the deadline. Also for the healthiness and inspiration
during the researcher do the researches until it fully finished.
My mom for all support that you gave me until this the researcher can finish the
skripsi. Thanks for the food and caring me for what I want during the research. I
would say all my thanks just for you. I will be nothing without your support and
your appearance. You are really something for me. Thanks for all you give for me.
My family (lissa, Jeane latycia, Lina, Winata) thanks for your attention and your
support that always help me when I have no idea how to continue this research.
Thanks for all your support.
My friends (Hengky Lo, Surya, Lee Minh Hung, Linda, Ryanda, Galih, Rahman,
Hendra, Hendy, and Riri) for your support and your annoyance that make my mind
refresh again and give innovation for my skripsi.
For my beloved skripsi adviser Miss Filda who is always patient to answer my
entire stupid question. For your hard work and knowledge that not all I do not
understand. Thanks for your advice that you gave to me all this time.
Best Regards
Wisnu Setiawan Linga
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TABLE OF CONTENTS
PANEL OF EXAMINERS APPROVAL SHEET ................................................. ii
SKRIPSI ADVISER .............................................................................................. iii
DECLARATION OF ORIGINALITY ................................................................... iv
ABSTRACT ............................................................................................................ v
ACKNOWLEDGEMENT ..................................................................................... vi
TABLE OF CONTENTS ...................................................................................... vii
LIST OF TABLES .................................................................................................. x
LIST OF FIGURES .............................................................................................. xii
CHAPTER I ............................................................................................................ 1
INTRODUCTION ........................................................................................................... 1
1.1 Background of Study ................................................................................................. 1
1.2 Problem Identification............................................................................................... 4
1.3 Statement of the Problem .......................................................................................... 4
1.4 Researcher Objective ................................................................................................. 5
1.5 Significance of Study ................................................................................................ 6
1.5.1 For the researcher ........................................................................................... 6
1.5. For KFC Lippo Cikarang ................................................................................. 6
1.5.3 For the Reader ................................................................................................ 6
1.6 Definition of terms ..................................................................................................... 6
1.7 Scope and Limitation................................................................................................. 8
CHAPTER II ........................................................................................................... 9
REVIEW OF LITERATURE ......................................................................................... 9
2.1 Theoretical Review .................................................................................................... 9
2.1.1 Marketing ....................................................................................................... 9
2.1.2 Marketing Restaurant ................................................................................... 10
2.1.3. Marketing Mix ............................................................................................ 11
2.1.4 Customer Buying Decision .......................................................................... 16
2.2 Previous Research .................................................................................................... 19
2.3 Theoretical Framework ........................................................................................... 21
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2.4 Hypothesis ................................................................................................................ 22
CHAPTER III ....................................................................................................... 23
RESEARCH METHODOLOGY ................................................................................. 23
3.1 Research Design ....................................................................................................... 23
3.2 Research Framework ............................................................................................... 24
3.3 Sampling Design ...................................................................................................... 26
3.4 Research Instrument ................................................................................................ 26
3.5 Validity & Reliability .............................................................................................. 28
3.5.1 Validity Test ................................................................................................. 28
3.5.2 Reliability Test. ............................................................................................ 29
3.6 Data Collection Procedure ...................................................................................... 30
3.6.1 Primary Data ................................................................................................ 30
3.6.2 Secondary data. ............................................................................................ 30
3.6.3 Measurement Scale ...................................................................................... 31
3.7 Testing hypothesis ................................................................................................... 32
3.7.1 Multiple Regressions ................................................................................... 32
3.6.2 Classical Regression Assumptions............................................................... 33
3.6.3 F Test ……………………………………………………………………. 35
3.6.4 T Test ......................................................................................................... 35
CHAPTER IV ....................................................................................................... 36
ANALYSIS OF DATA AND INTERPRETATION OF RESULT ........................ 36
4.1 Company Profile ...................................................................................................... 36
4.1.1 Vision, Mission, Objective .......................................................................... 37
4.1.2 Corporate Value ........................................................................................... 38
4.1.3 Corporate Strategy ....................................................................................... 39
4.2 Data Result Analysis ............................................................................................... 39
4.2.1 Validity and Reliability ................................................................................ 39
4.2.2 Descriptive Statistics .................................................................................... 45
4.2.3 Classical Regression Assumptions............................................................... 53
4.2.4 F test and T-test ............................................................................................ 56
4.2.5 Multiple Regression Model .......................................................................... 59
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4.2.6 Coefficient Determination ........................................................................... 60
4.3 Interpretation of result ............................................................................................. 61
CHAPTER V ........................................................................................................ 63
CONCLUSION AND RECOMENDATION ............................................................. 63
5.1 Conclusions .............................................................................................................. 63
5.2 Recommendation ..................................................................................................... 64
5.3 Recommendation for the future study ................................................................... 65
REFERENCES ..................................................................................................... 66
BOOKS ............................................................................................................................ 66
Journal.............................................................................................................................. 68
Internet ............................................................................................................................. 68
APENDIX I ........................................................................................................... 69
Questionnaire .................................................................................................................. 70
APPENDIX II ....................................................................................................... 73
Transcript of Interview.......................................................................................... 73
APPENDIX III ...................................................................................................... 75
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LIST OF TABLES Table 1.1 the improvement in restaurant and in medium and big scale, 2007 –
2011……………………………………………………………………………... 2
Table 2.1 Previous Research………………………...………………………….. 19
Table 3.1 Dependent and independent variables in this research…………...… 26
Table 3.2 Relative Grading Statement…………………………………….……. 31
Table 4.1 Validity test from Pre-test……………………………………………. 39
Table 4.2 Reliability test From Pre-Test (Product)…………………………….. 41
Table 4.3 Reliability test From Pre-Test (Price)……………………………….. 41
Table 4.4 Reliability test From Pre-Test (Place)………………………………... 42
Table 4.5 Reliability test From Pre-Test (Promotion)………………………..…. 42
Table 4.6 Reliability test From Pre-Test (People)………………………………. 43
Table 4.7 Reliability test From Pre-Test (Process)………………….………….. 43
Table 4.8 Reliability test From Pre-Test (Physical Evidence)……………...…... 44
Table 4.9 Reliability test From Pre-Test (Buying Decision)…………….....…… 44
Table 4.10 Demographic View (Batch)………………………………………... 45
Table 4.11 Demographic View (Nationality)…………………………………… 46
Table 4.12 Demographic View (Major)………………………………………… 46
Table 4.13 Demographic View (Gender)…………….………………………..... 47
Table 4.14 Mean & standard Deviation (Product)…………………….……….. 48
Table 4.15 Mean & standard Deviation (Price)………………… …………....... 49
Table 4.16 Mean & standard Deviation (Place)………………………………… 49
Table 4.17 Mean & standard Deviation (Promotion)………………….………... 50
Table 4.18 Mean & standard Deviation (People)………………………….……. 50
Table 4.19 Mean & standard Deviation (Process)………………………. …….. 51
Table 4.20 Mean & standard Deviation (Physical Evidence)…………………... 51
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Table 4.21 Mean & standard Deviation (Buying Decision)……………….. ….. 52
Table 4.22 Mulicollinearity Table………………………….…………………… 54
Table 4.23 F-Durbin- Watson Table……………………………………………. 56
Table 4.24 F-Test Table…………………...……………………………………. 57
Table 4.25 T-Test Table……………………………………….………………... 58
Table 4.26 Significant Table…………………...……………………………….. 60
Table 4.27 Coefficient Determination………………….…….…………………. 61
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LIST OF FIGURES
Figure 2.1 Theoretical Framework…………….……………...………………… 21
Figure 3.1 Research Framework …………...….………………………………. 25
Figure 3.2 Validity Test Formula……………….………………………………. 28
Figure 3.3 Reliability Test Formula……………….……………………...…….. 29
Figure 3.3 Multiple Regression Formula……………….………………...…….. 32
Figure 3.5 Multicollinearty Test Formula……………….……………...………. 34
Figure 3.5 F-Test Formula……………………………...……………………….. 35
Figure 4.1 Demographic View (Batch)...…………… ………………………… 45
Figure 4.2 Demographic View (Nationality)...……………….……. ………….. 46
Figure 4.3 Demographic View (Major)................................................................. 47
Figure 4.4 Demographic View (Gender)……………………………………....... 48
Figure 4.5 Normality Histogram........................................................................... 53
Figure 4.6 Normality Plot…………………....………………………………….. 53
Figure 4.7 Heteroskedacity Scatter Plot...……………….……………. ………. 55
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CHAPTER I
INTRODUCTION
1.1 Background of Study
Indonesia is a big country who have many restaurants available. From data
according to BPS (Badan Pusat Statistik, 2010) Indonesia have 2,977 restaurants
which spread around Indonesia. The big improvement in number of restaurant in
Indonesia is happened in 2008. The improvement of Indonesia in restaurant is about
28, 29% than 2007 (BPS, 2011). The improvement of Indonesia in restaurant in the
other year is not big than 2008, in 2009 the improvement happened around. 20,
98%, and in 2010 the improvement happened around 7.84%, in 2011 the
improvement in the restaurant just 2, 09%. (BPS, 2011). From the data above, we
can see the improvement in 2008 and 2009 is bigger than 2010 and 2011. We can
conclude that in 2008 and 2009 is happened to expand their business first, and in
the 2010 and 2011 is marketing war, where the restaurant needs marketing strategy
for their business.
The spread of the restaurant in Indonesia is not spread evenly. Most of
restaurant located in DKI Jakarta province. In DKI province 1,361 Restaurant in
2011 (BPS, 2011). The second province is west java. In west java there is 289
restaurants in 2011. The rest like another java province has around 200 each. In
north Sumatra province, it has 168 restaurants. The rest province is not reach 100
restaurant in that province.
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Table 1.1 the improvement in restaurant and in medium and big scale, 2007
– 2011
Year Restaurant
Average of Worker Total Growth (%)
2007 1,615 - 27
2008 2,235 38,39 27
2009 2,704 20,98 27
2010 2,916 7,84 27
2011 2,977 2,09 28
Sources: Badan Pusat Statistik (BPS; 2011)
From table 1.1.the total restaurant in Indonesia was increased from year to year.
When as, the growth of restaurant was decreased. In 2008 to 2009 the percentage
of growth on restaurant in Indonesia is 20, 98%, but in 2009 to 2010 the percentage
of growth on restaurant in restaurant is 7, 84%. It can be seen that the percentage
of restaurant in Indonesia was decreased.
In 2012 KFC Indonesia also have some plans to keep their existency was
keeping up, and want to make their competitor to be their follower. In that time
KFC want to build about 30 or more franchise in this year. KFC will save cost in
operational system with good management. This private sector company want raise
the price the product, but the increase is lower than ten percent. The other thing that
KFC should do is review about cost of goods sold with renegotiation of banner.
There are some plans that KFC do to keep their existency during this globalization
era with a lot of fast food restaurant.
Time by time, PT Fast Food Indonesia with their famous product KFC was been
able to expand into small areas in Indonesia such as small districts and other cities
in Indonesia like Surabaya, Semarang, etc. In 2007, KFC already have 307
franchises in Indonesia. Around 11.840 people is working with KFC. With many
franchises that KFC have, their total sales can be 1.590 trillion in a year. To
compete with other fast food restaurant, KFC always monitoring and evaluation the
market that got any comment from consumer to improve their quality.
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To improve the sales, KFC use music as one of their strategies to get more
consumers. Music is just like the air for the teenager, which is why KFC use these
strategies to get consumer from teenager. For KFC, music is the effective way to
get more consumers. After see the successful program from TV ‘Indonesia idol’,
KFC finally chose ways for promotion with band indie. Music that played by indie
band is easy listening music. One of successful promotion that use indie band is
Juliete band as one successful vanguard in their promotion.
Competitor is always shop up one by one. Like old competitor McDonalds.
Always have same product like KFC, but the taste of the fried chicken of KFC is
not unbeatable. McDonalds have good strategies like delivery services. A delivery
service strategy is very successful considering KFC in that time does not have
delivery services. A lot of people are a busy people, for employee who can always
go out to buy food or university student who busy with their assignment. Now days
KFC have delivery services that can beat McDonalds in sales. The competitor of
KFC in fast food restaurants out there are Popeye, Wendy's, California Fried
Chicken, A&W, Rocket Chicken, Quick Chicken, Olive.
According to Theo (2013), the shift leader of KFC Lippo Cikarang the
competitor near KFC Lippo Cikarang is a lot, but KFC never see the competitor as
the competitor. Every restaurant have the uniqueness for the product, which never
scare if there is new fast food restaurant near KFC Restaurant.
Data is the key of this research. Although is online or offline (manually). With
the internet connectivity, the researcher will found all article, book, and theory, all
which can support this research. Library will be second option to do some research
for the theory which connected with the research. The researcher will do the best
for looking for the information that can support this research
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1.2 Problem Identification
Based on data above, KFC is favorite fast food restaurant because there are
many franchise of KFC spread around Indonesia. That is why we can see KFC in
every province even though there distance with both KFC is near. That make KFC
is favorite fast food restaurant.
Supported by statement from Theo (2013), the new competitor of KFC located in
surrounding Cikarang (McD Jababeka) has Impact to the sales of KFC. Our
customer of Teenager and to represent a teenager, the researcher chose President
University Student. The customer of President University student has reduce, but
not significantly. This phenomena / case created a problem to be solve in this study.
“Why President University student still visit KFC Lippo Cikarang even
though there is new fast food restaurant nearby them.”
From the problem above, the researcher want to know the influence of buying
decision based on Marketing Mix (7p’s).
1.3 Statement of the Problem
The statement of problem that are evaluated in this study can be formulated in
the form of the questions as state below:
A. Is there any influence between products of marketing mix towards KFC
consumer buying decision?
B. Is there any influence between prices of marketing mix towards KFC consumer
buying decision?
C. Is there any influence between places of marketing mix towards KFC consumer
buying decision?
D. Is there any influence between promotions of marketing mix towards KFC
consumer buying decision?
E. Is there any influence between peoples of marketing mix towards KFC
consumer buying decision?
F. Is there any influence between processes of marketing mix towards KFC
consumer buying decision?
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G. Is there any influence between physical evidence of marketing mix towards
KFC consumer buying decision?
H. Is there any influence between Marketing Mix 7p’s towards KFC consumer
buying decision?
1.4 Researcher Objective
The researcher interest with this topic because many teenager chose fast food
restaurant as their favorite food during their university life. The researcher also
likes to eat at fast food restaurant. With this life of university student, the researcher
want to know why KFC still have ray of light in president university student’s eye.
KFC have something unique that can make their consumer buy their product
continues.
This research purposed to know whether marketing mix (7p’s) has influence
towards President University Student consumer buying decision. Furthermore, the
researcher also want to know what the most significant factor from marketing mix
that affect in president university student is buying decision process.
For the explanation above, the objective of this research are:
A. Analysis the influence between products of marketing mix towards KFC
consumer buying decision.
B. Analysis the influence between prices of marketing mix towards KFC
consumer buying decision.
C. Analysis the influence between places of marketing mix towards KFC
consumer buying decision.
D. Analysis the influence between promotions of marketing mix towards KFC
consumer buying decision.
E. Analysis the influence between peoples of marketing mix towards KFC
consumer buying decision.
F. Analysis the influence between processes of marketing mix towards KFC
consumer buying decision.
G. Analysis the influence between physical evidence of marketing mix towards
KFC consumer buying decision.
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H. Analysis the influence between Marketing Mix 7p’s towards KFC consumer
buying decision.
1.5 Significance of Study
Based on the objectives of the research, this research is meant to be able to
give many advantages and contribution both in academic and professional practice.
1.5.1 For the researcher
This research will contribute as well as enhance the theories that discovered
factor that affecting buying decision, although the researcher’s work lacks of
experience. However, more or less the research will practically help the readers
understand how to apply the theories are.
1.5.2 For KFC Lippo Cikarang
The research will contribute for the companies of origin of these research
“analysis marketing mix towards buying decision process” so the company can be
more sensitive about the result of this research.
1.5.3 For the Reader
The research wills also a reference for readers in general, student and
researcher in particular. They look take a look at all theories used and their impact
in reality. In addition, it will be able to serve for their study to get a full
understanding about the topic in combination with other theories and researches.
1.6 Definition of terms
A. Restaurant: a place where the staff of restaurant offer the menu of the
food
B. BPS (Badan Pusat Statistik): Non Departmental Government
Institutions in Indonesia, which has a primary function as a provider of
basic statistical data, both for the government and for the general public,
both nationally and regionally.
C. Marketing: a mixture of linked activities to understand consumers' needs
and develop promotion, distribution, service and price that consumer
needs can be met with both a certain profit level.
D. KFC: The famous Fast food restaurant which sell fast food product
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E. Marketing Mix: a set of marketing tools that companies use to achieve
marketing objectives in meeting its target market.
F. Buying Decision: Identify all possible options to solve the problem and
assess the systematic selection purpose and objective and decisive
advantages and disadvantages of each
G. Product: Goods and services which can be sell to buyer
H. Price: the value of product
I. Place: Some space that can be useful to make the transaction about buy
and sell is happened.
J. Promotion: The activities that marketer do to make their product is more
popular and attracted to buyer buy the product.
K. People: Many person who work for the company that have a task to
satisfied the costumer
L. Process: The activity regarding handling the administration between
seller and buyer
M. Physical Evidence: The facility there are needed in the quality of
products and services present real.
N. Competitor: the other company who has same of product line of product
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1.7 Scope and Limitation
In this research, researcher focuses on analysis marketing mix (7P’s) towards
buying decision. The scope of this research is about to analyze the influence
marketing mix to buying decision and the most important factor from marketing
mix variable to buying decision process of in president university student. In this
research the population uses is President University students, however President
University is a campus which have a hundred or thousand students that sometimes
is not available to answer the questioner from the researcher. According to Sekaran
(2010) that “the Determine of sample size number be among 30 to 500 elements”.
In this research, the researcher will chose 150 respondent to answers the questioner
and there criteria for to be respondent, The criteria for the target respondent in this
research is the President University student who already visit and bought KFC
Lippo Cikarang product. The independent variables that will use for this research
are a product, Price, Place, Promotion, Process, People, Physical evidence towards
dependent variable, Buying Decision.
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CHAPTER II
REVIEW OF LITERATURE
2.1 Theoretical Review
2.1.1 Marketing
Marketing is the main core for the existence for the company, that condition
make the company must be orientated and be creative to fulfill what consumer
want. There are a lot of economic expert give the definition about marketing, even
though their definition of marketing is different, but the main meaning is same.
That are many definition of marketing is happened because the point of view each
expert is different. Not just different people, sometimes old expert has change old
theory with new theory.
First from the old one, according to Baker (1976) Marketing is the enigma
of marketing is that it is one of man's oldest activities and yet it is regarded as the
most recent of business disciplines. And according to Hani Handoko (2000: 4)
Marketing is Suatu system keseluruhan dari kegiatan – kegiatan usaha yang di
tujukan untuk merencanakan, menemukan harga, mempromosikan, dan
mendistribusikan barang dan jasa yang dapat memuyaskan kebutuhan baik kepada
pembeli yang ada maupun pembeli potentional.But according to Kotler and
Armstrong (2010) Marketing is marketing is the process by which companies
create value for consumers and build strong consumer relationships in order to
capture value from consumers in return.
There are a lot of definitions of marketing by economics specialist and have
different point of views. In this modern era there many association and institute that
related with economic. The association and institute have their point of view. Many
institutes have their definition of marketing.
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For example, according to the Chartered Institute of Marketing (CIM)
(accessed 2013) Marketing is the management process for identifying, anticipating
and satisfying consumer requirements profitably. According to American
Marketing Association (2007: 10) marketing definition is the activity, set of
institutions, and processes for creating, communicating, delivering, and exchanging
offerings that have value for consumers, clients, partners, and society at large.
All definitions above show the similarity about their statement. Therefore,
researchers has conclude that’s marketing definition is all about activity from the
company that has one goal, the goal is give the consumer satisfaction and
consumer’s want through selling process. Marketing is all operation system since
the idea of the product or services is pop up from the head and keep going after the
product is sold. So there is just no buying and selling process but cover all activity
in the company.
Marketing is oriented with the consumer that is why marketing is just
thinking about what consumer wants and consumer needs. Talking about that,
company will make what we sell is more valuable than what we make. Company
always does the research with one goal, to be what consumer wants, and consumer
needs.
2.1.2 Marketing Restaurant
Marketing restaurant is a philosophy that maps marketing management
decisions and owners, to customers, employees, suppliers, and suppliers, and the
general public, about honestly, sincerity and moral values needed in the interests to
be placed in ethics and moral values in business (Walker and Lundberg; 2005)
Accordance with the philosophy of marketing, engineering and marketing
practices are management efforts to determine the wishes of certain group of people
and a specific target market and target specific markets in terms of food, service,
price and atmosphere restaurant. Marketing discover what consumers want and
provide desire in the menu, atmosphere and sometimes the researcher also wants
the new service. In the restaurant business, consumers see, touch, feel and listen
through the offers provided.
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Always solve marketing problems faced by consumers. Lifestyle changes
lead to different of the desires and needs of consumers who vary from one location
to another. Assumption is an ideal restaurant or not is different for everyone. Some
people are looking for luxury, comfort or a particular value of a restaurant. But the
quality of food that is always in search by consumers. There are other things that
cause people to come to the restaurant, it was hunger. There are also other
consumers who are looking for entertainment that is inside the restaurant.
2.1.3. Marketing Mix
In marketing, marketing mix is the famous marketing term than the other
marketing term. Marketing mix is like strategy or operational tactical on part of
marketing plan. In the first time, according to Mc. Charty (1964), Marketing Mix
is divided by 4p’s. 4p’s of marketing mix are product, price, place, and promotion.
As time passed, there are a new theory that more effective than before. According
to Boom and Bitner (1981) marketing mix in services company need some
additional in marketing mix. They add 3p’s for additional for marketing mix such
as people, process, and physical evidence.
There are many economic experts that already give definition about
marketing mix. Every expert has each point of view for the marketing mix. Many
definitions about marketing mix but just have one meaning of marketing mix.
For example, according to Kotler and Armstrong (2010) marketing mix is
The set of controllable tactical marketing tools – product, price, place, and
promotion – that the firm blends to produce the response it wants in the target
market. But according to Dharmesta & Irawan. (2005) definition of marketing mix
is the variables that used by company as a tool to fulfill or serve consumer wants
and consumer’s needs.
From both definition above the researcher can make the conclusion that
marketing mix is the set of variables controllable that can used by the company to
influence the consumer reaction from certain market segment that pointing to the
company, marketing mix that the researcher use for the research is 7P’s.
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2.1.3.1 Price
According to Solomon et al (2009) price is the amount the consumer must
exchange to receive the offering. Price is also discount, sales, credit, period of
payment. Company has a goal that must be achieved in that time was set. In terms
of price, company must reduce the cost with improvement on manufacturing and
efficiency; the most important things is the marketer must needs to increase the
perceived value of benefits from each product and serve the consumer well.
In marketing mix, price is the least attractive element. Marketing
department must be really focus on generating as high as margin as possible. The
statement above is that the marketing department must change product, place, or
the promotion in many ways before resorting the price reductions, anyhow price is
a multifunction variable of the mix as public can see.
2.1.3.2 Place
According to Kotler and Armstrong (2010) definition of place is Place
include company activities that make the product available to target consumer. The
activities above include distribution, stock and location. Strategies location will be
profitable for the company if the place is near the market or the place which is easy
being reach with the consumer. Not just that, the company also think about to rent
or place investment to more expensive. The High price of the place that can be
compensation with marketing cost reduction.
2.1.3.3 Product
According to Kotler and Armstrong (2010) product means the combination
of goods-and-services of companies offer to the target market. Product is also the
one who can make the company still exist and running the company. Company can
earn some profit from the value of that product who can help the company set the
consumer mind with their product image.
There are five product attribute that the company must do to win with other
competitor with deliver and give the benefits to the consumer. According to Kotler
and Armstrong (2009), product quality, branding, packing, product features,
13
labeling, and product support services are the variable that must be given to the
consumer as consumer benefit.
2.1.3.3.1 Product quality
Product quality is important or one of the main points that all marketers
are relevant in delivering products or services of a specific characteristic that needs
the capability to meet consumer needs.
2.1.3.3.2 Branding
Brand is logo, sign, name and symbol that has a value of that identify the
product or service and distinguish it from other products and services from other
competitors
2.1.3.3.3 Labeling
Labeling is doing several functions, first label are to explain a few things
about a few products like ingredients products, the origin create the product, and
who create the product. The second label assist marketers to provide identification
to the product or brand. Last is to promote and reposition product in mind of the
consumer.
2.1.3.3.4 Product features
Product features is value of or benefit the firm that produce the product
and also a tool for companies to differentiate their the product from competitors'
products
2.1.3.3.5 Packing
Packing is process design, cover up, and wrap the product into something
in the context to look nice, tell it to protect the identification of hazardous things.
2.1.3.3.6 Product support services
Product support services is consumer service which the company offers to
consumers after bought their product, services generally provided by the company
can be a support for large and small parts of the overall offer.
14
2.1.3.4 Promotion
Promotion is a tools from marketing department each company that used
to attract and give the brand image to customer minds. With the promotion, the
company can increase the sales of the company. According to Kotler and
Armstrong (2009), promotion is a set of activities that give the explanation to
consumer about the benefit of the product and make them to buy the product.
Different statement with belch, belch (2003) said promotion is the coordination of
all marketer in company that need to setup the information of the product and
coaxing the consumer to buy the product or services or give the brand image. In
the end all statement from the expert is just one means, to promote their product
and make consumer buy the product of services.
2.1.3.4.1 Promotional Mix
Promotion mix is basic tools to complete the goals of company
communication (Belch, 2003). Promotion mix is also a set of promotion ways that
use to present the specific product (Pride and Farrell (2010). There are 5 variable
in promotion mix, there are advertising, public relation, personal selling, direct
marketing, and sales promotion. There are the definition each variable according to
Blech (2003) and Kotler and Armstrong (2009):
2.1.3.4.1.1 Public relations
Public relation is make a good relations with the firm’s various public by
get nicely image, make a good corporate image and through any kind of issue,
history and event (Kotler, 2009). Public relation are activities to give the
understanding about product people and etcetera.
2.1.3.4.1.2 Sales promotion
Advertising of personal sales often cooperate with other promotional tools,
promotional sales. Sales promotion consists of short-term incentives to push the
purchase or sale of a product or service
2.1.3.4.1.3 Direct Marketing
Where society organizations directly with targeted customers and
transactions to generate a response. Direct marketing is more than direct mail and
15
mailing catalog. involves a variety of activities, including database management,
direct sales, telemarketing, and direct response though advertising direct mail, the
Internet, and a variety of broadcast and print media.
2.1.3.4.1.4 Advertising
Paid from any non-personal communication about an organization,
product, service, or idea with late-identified sponsor, according to Kotler (2009)
the objective of advertising is the task that must be complete with right
communication, right time and the right communication.
2.1.3.4.1.5 Personal Selling
Personal selling is a communication between buyer and seller that make
the conversation, which sales job is make the buyer buy their product. Usually
personal selling is like a meeting between 2 people that make a deal. There are also
a communication ways to speak with the buyer is telemarketing or by phone.
2.1.3.5 Process
Services is something that you cannot see and restart, it means which
service is what we get cannot be save and back to first we see. The company
become challenged to give the best service to costumer and increased the services
that give to customer because the company know that services cannot be save or
keep. Services is a set of idea and activity which deliver the services from delivery
services and operating system that give to customer (Bitner and Broom, 2005). All
process from step and ways of giving the best services to costumer is end in
customer hand.
2.1.3.6 Physical Evidence
Physical evidence is choose the condition of the place that give the service
between marketer and customer, also join with goods or tangible commodities
(Bitner and Broom; 2005). Physical evidence is one factor that affecting buying
decision as one of marketing mix. Physical evidence is concentered in environment
that interact with customer with the services, not the product. Physical evidence in
restaurant like focus in facility as big reason that customer come to that place.
16
Temperature, cutlery, table setting and crockery, menu design, employee uniform,
decor/ comfortable seating it is categorized as physical evidence in restaurant
industry. The increase of services of the company, the more need company to give
the physical evidence for customer where the experience from service of company
can get the customer mind.
2.1.3.7 People
The other important factor in marketing mix is people. People is very
important person who delivering company product. Staff who is the one who face
directly to customer. Staff of company have big contribution for service quality of
the firm. The staff of company can be the image of the company which can lead
the company to the higher customer satisfaction.
People or the staff of the company have a big ole to give the image of the
company. If the staff is nice and diligent, it can increase of sales. If the staff is rough
and lazy, it can decrease the sales. Company can increase the customer loyalty and
customer satisfaction from their staff who warm and friendly (Kotler, 2009).all
people will directly connected to services counter, from the company ask the
employee, and the employee will do to customer (Bitner and Broom, 2005).
2.1.4 Customer Buying Decision
According to Jenu (2004), marketing mix is a tools to affect the consumer
to buy the product and services and if the all of marketing mix is doing well, It can
be sure that can affect the consumer buying decision. Consumer as a decision maker
probably assumes that options such as products or services are their problem
solving (Peter & Olson, 2010).buying decision is all from product and services that
serve by the company to customer. To increase the sales and giving what customer
wants, the sales must to know what the customer buying decision is. The sales can
give to customer what the customer really want. Problem recognition, information
research, evaluation of alternatives, purchase decision, and post purchase behavior
are five step of customer buying decision (Kotler & Keller, 2012).
Marketing mix policies set by marketers to consumers in decision making
is a big influence. It is based on the purpose of marketing activities to meet
customer satisfaction, as proposed by Swastha (1997:10) that "the whole system of
17
marketing activities in the planning, pricing, promoting, distributing goods and
services that can satisfy the needs of the buyer.
2.1.4.1 Stages of Customer Buying Decision
2.1.4.1.1 Problem Recognition
Problem recognition is the first step of customer buying decision process.
In problem recognition, customer must know what the external is and internal factor
to make the customer buy this product.in internal factor is the costumer is hungry
and thirsty, and the external factor comes from the environment of the place. From
that all, the marketer must know the background and what is costumer want’s want.
The company can collect the data from a lot of number of the costumer.
2.1.4.1.2 Information Search
There are two level in information search process. Heightened attention is
there first level of information search. Heightened attention is the condition where
the person is become curios about the product, the next level is active information
search. This level is about the person looking for or gathering all information to
know more about the product. Personal, commercial, public, experiential are the 4
major information sources which used to search information about the product.
2.1.4.1.3 Evaluation Alternative There are three basic concept that related with customer evaluation process.
First, all customer want to fulfill their needs. Second all costumer want the benefit
from the product they bought. Last is all costumer want to know that each product
have specialty than the other product. From the three process, the costumer will pay
for the benefit they got from product. The sales will have different target base on
the benefit of each product, so it can be benefit for all segment who buy the product.
With studying a get the experience, the people can get the attitude and belief.
Belief means when someone who really want hold something really much, and
attitude means when people can enduring the emotional, action, and good or bad
situation. Customer will have attitude to all in this word such as food, clothes,
music, religion, and politic.
18
2.1.4.1.4 Purchase Decision
Purchase decision is the next step after evaluation process. The customer
start too compared with other brand. The customer compare with brand that which
one that make the customer want to buy the product. There are 5 sub decision to
get the purchases intention of customer. There are brand, dealer, quantity, timing,
payment method. Two factor that make the purchases intention and purchases
decision are attitude of the others and anticipated situational (Kotler & Keller,
2012)
2.1.4.1.4.1 Unanticipated Situational
Unanticipated Situational is the situation that can change the purchases
intention because this factor can be shown.
2.1.4.1.4.2 Attitude of the others
The influence from person attitude depends on two things; first is a
motivation of the person to comply with the other person wishes. Second is the
intensity of the others person negative attitude to customer preferred alternative if
the customer minds is towards to negativism, the closer a customer to another
customer, the easier other customer to change the customer purchases intention .
2.1.4.1.5 Post purchases Behavior
Post purchases behavior is the last step from buying decision. This process
is about telling more about consumer experiences and the felling after buy the
product. The experience after buy the product will recall the other brand product
that can be make the next consumer decision. In this step, the marketer must make
sure that the customer get all the benefit from this product and from the services
and feels good about the product. The customer will come back soon if the
consumer get the profit from the benefit from goods or service
19
2.2 Previous Research
Table 2.1 Previous research
Title /
Researcher
Independent Dependent Methodology Research
Result
analyze the
influence of
marketing mix
effectively
towards buying
decision of the
customer KFC
Magelang / S.
Satmoko, T.
Ekowati, B.M.
Setiawan and
A. Intan Sari
(2005)
Marketing
mix (4P’s)
Buying
Decision
Survey price and
place
has an
influence on
purchasing
decisions
consumer
analyzes the
effect, of retail
marketing mix
toward
consumers’
purchasing
decision at
KFC
banyumanik
semarang /
Silvia Arum
and Isnaini
Nurkhayati
(2013)
Marketing
mix (7P’s)
Buying
Decision
Survey Place,
Merchandise,
Price,
Advertising,
Store
Atmosphere,
Service has
an influence
toward
buying
decision.
20
Analysis of
consumer
Purchase
Decision
Process in Fast
food
Restaurant in
KFC Branch
padjadjaran
and bogor
impact on
marketing mix.
/ Yugi
Ramdhani
(2005)
Marketing
Mix (4P’s)
Buying
Decision
Survey People Place
Product has
an influence
toward
buying
decision.
Analysis of
Marketing Mix
Influence
Purchasing
Decisions On
Against
Waroeng Steak
and Shake
(Case study
Waroeng Steak
and Shake
Soekarno -
Hatta, Malang)
/ Andrey Olaf
Yeriko
Panjaitan and
Marketing
Mix (4P’s)
Buying
Decision
Survey Product,
price,
Place,
Promotion
has an
influence
toward
buying
decision.
21
Prof. Dr.
Achmad
(Sudiro, SE.,
ME (2008)
2.3 Theoretical Framework
Independent Variables Dependent variable
Figure 2.1 Theoretical Framework
Sources: Self Construct
From the figure 2.1, the researcher gives the overview of how the research will
be done. There are 7 element from 7’P. Begin with first is price that cans one of
22
factor to buying the product. And second with other factor product, that with good
quality of product, consumer will have intention to buying the product. Third is
place where is the restaurant is, is that restaurant in strategies position to get people
have intention for buying the product in that place. Fourth, there is promotion. Is
the promotion of that restaurant is really good enough to get consumer mind to buy
the product.
Fifth are people. People mean the employee who works in the restaurant. The
employee is diligent or very kind to consumer that can attracts for ta consumer to
come back again to buy their product. Sixth is process. The process is good enough
or does not have a long time to get the consumer food or the services in delivery
services. Seventh is physical evidence. Physical evidence is how the situation is or
the place is good enough to eat in that place by knowing variable that can affecting
buying decision of in president university student, the researcher chose some
number of samples to answer the problem.
2.4 Hypothesis
H1: Product has significant partial influence to the buying decision.
H2: Price has significant partial influence to the buying decision.
H3: Place has significant partial influence to the buying decision.
H4: Promotion has significant partial influence to the buying decision
H5: People has significant partial influence to the buying decision
H6: Process has significant partial influence to the buying decision
H7: Physical Evidence has significant partial influence to the buying decision
H8 Marketing Mix has simultaneous influence to the buying decision
23
CHAPTER III
RESEARCH METHODOLOGY
To maximize this research, researcher will spread the questioner to president
university student. Collect the data and will analysis the data as prefect as possible.
Not just spread the questioner, the researcher will analyzes the place on the spot.
So researcher will know the advantages from this fast food restaurant.
This research methodology chapter is show the step that researcher used and
research method and used in this research. Sampling scheme, process investigation,
select the respondents, and make the questioner, reliability check process, statistical
application, SPSS Test, gathering data and information are the step in this research.
3.1 Research Design
There are two method which can used for many expert or university student to
start the research. There are qualitative and quantitative which have many different
meaning and process both in the result. Quantitative is focused in data, because the
quantitative is about comparison with many kind of sources and many kind of
sources. Qualitative is focused in number, because quantitative is used statistical
tools and all about number. Quantitative and qualitative are have different ways but
have it is advantages and disadvantages.
Qualitative method is study is used with natural setting which can make the
reader and the researcher is easily to understand the meaning from the research
(Denzin and Lincoln. 2005). Qualitative method is usually to use which can give
the understanding for the reason and motivating. To show the problem and make
the hypothesis for future researcher, and to show the related public opinion. In this
method can be express by number.
24
Quantitative method is the scientific approach to managerial decision making;
whim, emotions, and guess work are not part of the quantitative analysis approach
(Render ET all; 2009). Quantitative method is about to prove the last theories and
developed from last research. In this quantitative method is make the researcher
must fully understand about the problem, analyzing, collecting all the data that the
researcher got. In this research, the researcher use quantitative method.
3.2 Research Framework
In this will show the step that has been used in this researcher. This research
started with determined the objective of this research. And the problem will be
occur in that objective. After the researcher found the problem, then it continued
by identified the theory to be used in this research as the basic theory to determine
the variable for making the question. After that with found the topic that will be a
basic for a good title for this research.
The next step for this research is construct the questionnaire which will used
for pretest in order to know whether the questionnaire is valid and reliable to
analyze. The questionnaire will be distributed to the sample respondent. Once the
statements are valid and reliable, it will distributed to respondent. The result of
questionnaire is still in raw data, and computed to Microsoft excel in order to
convert the average of each variable data.
The last step in this research is the data that the researcher got, was process
used SPSS. V.16.0 with regression analysis method. The regression method that is
presented by SPPS will Test the normality, Multicolinearity, Heterocedascity,
autocorrelation, T-test, F-test, R-square among the data of independent variables
and dependent variable and it will show the relationship between the independent
variables and dependent variable as the result of this research.
25
Figure 3.1 Research Framework
Sources: Construct by the researcher.
26
3.3 Sampling Design
Sample size or the number of samples taken will become an important issue in
quantitative research analysis. In this research, the researcher will used Purposive
Sampling for the sampling technique. Purposive technique is a technique to so
choose the sample with some criteria (Arum, S & Nurkhayati, I; 2013). The criteria
for the target respondent in this research is the President University student who
already visit and bought KFC Lippo Cikarang product. Thus, the amount of
population is cannot be calculated. According to Sekaran (2010) that “the
Determine of sample size number be among 30 to 500 elements”. In this research,
the researcher will chose 150 respondent to answers the questioner.
3.4 Research Instrument
Table 3.1 Dependent and independent variables in this research
No Variable Indicators Scale
1 Buying
Decision (Y)
I buy KFC because its taste
good
Likert
I buy KFC because price of
KFC product is achieveable
I buy KFC because near my
home or entetaiment place
I buy KFC because there is
some discount
I buy KFC because the staff is
nice and friendly
I buy KFC because the process
in administration is fast
I come to KFC because the
place is cool
27
Table 3.1 Dependent and independent variables in this research (count)
No Variable Indicators Scale
2 Product (X1)
The taste of KFC's product is
good
Likert
There are many menu option in
KFC
KFC product use clean tools to
provide the menu
Product in KFC is all fresh
3 Price (X2)
The price of KFC in resonable
Price
Likert
The price is average with the
taste of KFC
The price is affordable
The price of the combo menu is
good
4 Place (X3)
The place near your home
Likert The place is near entertaiment
place
5 Promotion (X4)
There adverting KFC in your
town is good
Likert There are attractive brocure
about KFC
There are many discount in
KFC
6 People (X5)
The staff of KFC is caring
Likert The staff of KFC is Friendly
The teamwork of KFC is good
28
Table 3.1 Dependent and independent variables in this research (count)
No Variable Indicators Scale
7 Process (X6)
The is no long queue in KFC
Likert They Make the order is fast
The menu that we order is right
8 Physical
evidence (X7)
The place is intersting
Likert
The Staff use uniform
The menu board is nice
The table for we eat is good
There are AC room in KFC
Sources: Self Construct
3.5 Validity & Reliability
3.5.1 Validity Test
The validity test used to know how the question from the questioner is have
the effect to the study. The validity test can assist the researcher make sure the each
variable of the questioner is the right variable for the research.
The Pearson’s correlation coefficient is to help which question is valid for
the researcher. The Pearson’s correlation coefficient is bases on actual values from
x and y. there are the equation from Berenson, leverson & Timothy C. Krehbiel
(2011).
𝑟 = 𝑁 ∑ 𝑋 𝑌 − ( ∑ 𝑋 ) ( ∑ 𝑌)
√𝑁 ∑ 𝑋2 √𝑁 ∑ 𝑌2 − ( ∑ 𝑌
Figure 3.2 Validity test formula
29
Which:
N: the number of the paired observations
∑X: The X variable summed
∑Y: The Y variable summed
∑X2: The X variable squared and the squares summed
(∑ X) 2: The X variable summed and the sum squared
∑ Y2: The Y variable squared and the squared summed
(∑ Y) 2: The y Variable summed and the sum squared
∑ XY: the sum of the product of X and Y
Variable which have high positive correlation with total score means that
variable have high validity (Sugiyono; 2006). The minimum requirements to
qualify are if r <0.5. the minimum score for variable to be valid if the total
respondent is 30 respondent and use the significant level of validity test is 0.05, r ≤
0.361 (Sugiyono, 2006)
3.5.2 Reliability Test.
Reliability is a characteristic of measurement concerned with accuracy,
precision, and consistency (Cooper and Schindler; 2006). Reliability test is useful
to know the measurement level and relatively consistence which the measurement
is done. According to Lind, D, and A 2002 reliability. Reliability is an index that
show the useful the instrument for the research.
𝛼 = Ν ∙ ṝ
1 + (𝑁 − 1) ∙ ṝ
Figure 3.3 Reliability test formula
Which:
Α: instrument reliability coefficient
Ṝ: mean correlation coefficient between variables
N: number of questions.
30
To achieve the moderate scale reliability, the reliability index or cronbach’
alpha must up to 0.60 (Malhotra; 2010). The variable that cannot be accept is where
the Cronbach alpha level is lower than 0.60.
3.6 Data Collection Procedure
There are two type of data collection for the researcher to search the data.
First is primary data and second is secondary data. Primary data is the data that
researcher need for the research as primary data. The primary data collected and
can gather all data with the result of the questioner the give to respondent who
related the research. Secondary data is also the data that researcher need for the
data as the secondary data. The secondary data collected and can gather by internet,
journal, books and any sources can support the research.
3.6.1 Primary Data
Primary data is the data is get from the researcher by any method to know
the data accurately (Donald Currie; 2005). The other expert defined that primary
data is data which get by the researcher for their research occupation (Malhotra and
Peterson; 2010). Their definition is deference but with one mean, there is data
which get by the researcher accurately with any method.
One of the method is questioner. The questioner is design by the researcher
with basic from research that already made. There are 2 part from questioner to
complete the data. There are demographic and the other that related with variable
that the researcher use. The first part is demographic that consist with the profile
with the respondent like name, major, and nationality. The second part is the
variable that related with the research. For this researcher is use marketing mix
(product, price, place, promotion, process, people, physical evidence) and customer
buying decision.
3.6.2 Secondary data.
Secondary data is data that collected for research purpose (Malhotra and
Peterson; 2002). There are many sources that can be get as the secondary data.
31
Internet, journal, books, interview, articles, and anything besides blog and
Wikipedia.
For the secondary data. The researcher use interview method, this method
is used to know the problem in the KFC Lippo Cikarang. In this this research, the
researcher also put the detail of the interview in the last chapter.
3.6.3 Measurement Scale
The Likert scale is the most popular that use in many research of the rating
scale for the questioner. Resins Likert was the developer the Likert scale. The rating
is about the level of agreement for the respondent with the question of the
questioner. According to Cooper and Schindler the respondent from the respondent
is with the numerical score to standard overall attitude.
The researcher use five Likert scale as the meaning of the result where the
data is a lot of number and chose (Malhotra; 2010)
Table 3.2 Relative grading statement
Relative Grading Statement Score
Strongly Agree 5
Agree 4
Neutral 3
Disagree 2
Strongly Disagree 1
Sources: Malhotra; 2010
If the result of mean for the answer of variable is between 3 – 5, it is mean
the spreading of answer in that variable is from neutral to agree. If the result of
mean for the answer of variable is between 1 – 3, it is mean the spreading of answer
in that variable is from neutral to disagree.
32
3.7 Testing hypothesis
The hypothesis are below this statement:
Ho: β1 = 0: Product partially no has significant influence to the buying decision.
Ha: β1 ≠ 0: Product partially has significant an influence to the buying decision.
Ho: β2 = 0: Price partially has no significant influence to the buying decision.
Ha: β2 ≠ 0: Price partially has significant an influence to the buying decision.
Ho: β3 = 0: Place partially has no significant influence to the buying decision.
Ha: β3 ≠ 0: Place partially has significant an influence to the buying decision.
Ho: β4 = 0: Promotion partially has no significant influence to the buying decision.
Ha: β4 ≠ 0: Promotion partially has significant partially an influence to the buying decision
Ho: β5 = 0: People partially has no significant influence to the buying decision.
Ha: β5 ≠ 0: People partially has significant partially an influence to the buying decision
Ho: β6 = 0: Process partially has no significant influence to the buying decision.
Ha: β6 ≠ 0: Process partially has significant partially an influence to the buying decision
Ho: β7 = 0: Physical evidence partially has no significant influence to the buying decision.
Ha: β7 ≠ 0: Physical evidence partially has significant an influence to the buying decision
Ho: β8 = 0: Marketing Mix simultaneously has no influence to the buying decision
Ha: β8 ≠ 0 Marketing Mix simultaneously has s an influence to the buying decision
3.7.1 Multiple Regressions
The researcher use multiple regression in this research. Multiple regression
models is a practical extension of simple regression in which it allow user to build
a model with several independent variables (Stair, JR and Hanna; 2009).
𝑌 = 𝐵0 + 𝐵1𝑋1 + 𝐵2𝑋2 + 𝐵3𝑋3 + 𝐵4𝑋4 + 𝐵5𝑋5 + 𝐵6𝑋6 + 𝐵7𝑋7 + 𝜀
Figure 3.4 multiple regression formula
Which:
Y = Buying Decision (Dependent Variable)
B0 = intercept
B1 – B7 = Regression Coefficient
X1 = Product (Independent Variable)
33
X2 = Price (Independent Variable)
X3 = Promotion (Independent Variable)
X4 = Place (Independent Variable)
X5 = People (Independent Variable)
X6 = Process (Independent Variable)
X7 = Physical Evidence (Independent Variable)
ε = Random Error
3.6.2 Classical Regression Assumptions
There are four test to pass the regression, there are normality test,
Multicollinearity test, heteroscedasticity test and autocorrelation test.
3.6.2.1 Normality Test
Normality test is test that to know the data is well. The normality test will
use SPSS software. With SPSS software the result is must be accurate. The
graphical method will be used for the normality test. In other word, normality test
is use to test the regression model between Independent and dependent variable is
distribute well or not; because the regression model must be normal or almost
normal (Priyatno; 2008).
The easy way to know the regression is normal or not, the data must be
follow the diagonal line or histogram graph.The graphical method show the
distribution from random variable and compare the distribution to theoretical plot.
3.6.2.2 Multicollinearity Test
Multicollinearity test is useful for the researcher to know the about each
independent variables is have related with the other in multiple regression.
According to Priyatno (2008), Multicollinearty test is a test to see the correlations
between Dependent and independent variables. Multicollinearity test is test that
must be avoid to all researcher, because the Multicollinearity test is not good for
each variable that related each other. To know the level of Multicollinearity,
34
Variance Inflation Factor (VIF) is used to know the level. Usually VIF is used to
know how high the level of variance of coefficients to increase if there are no
correlation between each independent variables.
𝑉𝐼𝐹𝜅 = 1
1 − 𝑅 2𝑘
And 𝑅2 = 𝑠𝑠𝑟
𝑠𝑠𝑡
Figure 3.5 Multicollinearity Test formula
Which:
𝑅 2𝑘
= the R2 value obtained by regressing the k th predictor on the remaining
predictors.
𝑆𝑆𝑅 = regression sum of squares
𝑆𝑆𝑇 = total sum of squares
With the formula above, the researcher can see the correlation by see the
result of VIF. Is the result is above than 10, its mean two variable is have a big
correlation between each of them, and the researcher must deleted the variable from
multiple regressions. If the result of VIF is less than 10, it is means the data is ok.
3.6.2.3 Heteroskedasticity Test
The function of Heteroskedasticity test is to know the data of the research
is have a divergence each variable from regression model (Priyatno; 2008).
Heteroskedasticity test is can be seen from the scatter plot by looking at the
distribution toward the predicated value. The data questioner is spread randomly
without any specific pattern, then the data pass heteroskedasticity test.
3.6.2.4 Autocorrelation Test
Autocorrelation test is a have a purpose, the purpose is to know the correlation
between the Residual from an observation to another observation (Priyatno; 2008).
35
To know the correlation can been seen with the result of Durbin Watson Method.
The result is good enough or there is no autocorrelation problem, if the output of
Durbin Watson is between -2 to 2.
3.6.3 F Test
F test is used to know the influence or relationship between x variable
(independent) and y (dependent) variable (Priyatno; 2008). F test works for get the
conclusion regarding the status between independent and dependent variables.
There is a formula that will used for this study that can help to find the F test.
𝐹 = ( 𝑅2/ 𝐾)
[(1 − 𝑅2)/(𝑛 − 𝑘 − 1)]
Figure 3.6 F-test formula
Which:
F = Statistic test for F distribution
R2 = confident of distribution
K = number of independent variables in the model
N = number of sample
The level of significant of this study is α = 0.05. Ho is accepter the value of
the f test is higher than 0.05 and the ho reject if less than 0.05.
Ho: β1 = β2 = 0, if significant F > 0.05, accept Ho
Ha: at least there is one β ≠ 0, if significant F > 0.05, reject Ho
3.6.4 T Test
T Test is used to know the influence between each independent variables to
dependent variable (Priyatno; 2008). The level significance is α is 0.05. Ho is
rejected if the value of T Test is < 0.05. And Ho is accept is the value of T test >
0.05.
Ho: βi = 0; if the significant T > 0.05, accept Ho
Ha: βi ≠ 0, if the significant T < 0.05, reject Ho
36
CHAPTER IV
ANALYSIS OF DATA AND INTERPRETATION OF
RESULT
This chapter is the important chapter for the research. In this chapter. Public
can see the history of the company, the result for the research. The history of
company will discuss all profile about the PT. Fast Food Indonesia and KFC Lippo
Cikarang. The result of the research is divide into 2 result. First is demographic
result, and second is the analysis result from the research.
4.1 Company Profile
PT Fast Food Indonesia Tbk, the only franchise holder of KFC brand in
Indonesia, was established in 1978 by the Gelael Family. The very first opening
KFC restaurant outlet at Jalan Melawai in October 1979 .The PT Fast food
Indonesia became a franchisee of KFC brand. The successful opening of the first
outlet paved the way for the opening of more additional outlets in Jakarta and
expansion of its regional coverage to include other major cities in Indonesia, like
Bandung, Semarang, Surabaya, Medan, Makassar, and Manado. With the
continuous success in building the brand, the name KFC became a by-word in the
QSR business and was instilled in the mind of consumers becoming the most
dominant fast food restaurant at Indonesia. The Company’s expansion initiatives
were reinforced by Salim Group in 1990 as one of the major shareholders.
The Company was licensed to use KFC brand by Yum! Asia Franchise Pte
Ltd, which is part of Yum! Restaurants International (YRI). YRI itself is a
company under Yum! Brands Inc. Yum! Brands Inc. used to be the franchise owner
of two other brands, A&W and Long John Silvers but was dropped by the end of
2011. However, even with the exclusion of these two brands, the Yum! Group is
still regarded as the largest fast food chain in the world and the best in providing
37
branded restaurant choices worldwide. Furthermore, in the chicken-based fast food
chain, however, no other brand can outclass KFC.
With the Company’s 34-year experience of successful operation and
continuous development growth, KFC brand is undeniably the nation’s market
leader in the fast food chain of restaurants. It has been expanding continuously
nationwide, making its presence felt not only in tough metropolitan areas but in
secondary cities as well. With its emphasis on free-standing outlets during the last
five years, the Company provides more flexibility in operating hours with full
facilities catering to consumers’ needs and preferences. Continuous renovation is
undertaken to provide new image and appearance in line with Company’s
objective. At the end of 2012, the Company has a total of 441 outlets spread over
98 cities and covering 32 of the 33 provinces nationwide. The Company’s total
workforceat the end of the year is 17,004 with sales turnover of more than Rp3.741
trillion. The Company issued 5- year maturity bonds in October 2011 with an
annual coupon rate of 9.5 percent payable quarterly and always up-to-date on its
interest payments. The funds were basically used for funding new store openings,
renovation activities on existing stores, and development of new or renovation of
existing warehouses.
KFC Lippo Cikarang is built in 1990. This KFC is stand for a long time in
Lippo Cikarang. Many Competitor is come near Lippo Cikarang. The leader of
KFC is not afraid. The leader believe, KFC always some uniqueness in their
product. There are always competitor, the problem that we must have idea to beat
the competitor.
4.1.1 Vision, Mission, Objective
VISION
Always is the No.1 QSR (Quick Service Restaurant) brand in Indonesia
and maintain this market leadership by being the most modern and favorite
restaurant in terms of product, value, service, and assets.
38
MISSION
Strengthening KFC brand image through innovative continuously
providing unparalleled consumers’ dining experience and consistently providing
quality products, services, and assets suited to consumers’ changing needs and
taste.
OBJECTIVE
Provide the most modern and trendy store appearance and design offering
good ambiance with the most comfortable seating by continuously undertaking
renovation and serving top quality food suited to consumers’ preferential taste with
speed and hospitality beyond compare.
4.1.2 Corporate Value
A. The Company’s corporate culture “We are the Owners of KFC” is instilled in
every employees’ mind to create an extraordinary sense of belonging in order
to produce a high level of performance and excellence in all their undertakings,
particularly in providing top quality food with speed and hospitable service.
B. Maintain good relationship and provide consumer satisfaction beyond their
expectation by putting CMS (CHAMPS Management System) into action in
every restaurant to assure restaurant Cleanliness, provide great Hospitality in
serving consumers, ensure Accuracy in order-taking and packing, assure high
level of Maintenance, ensure consistency in producing quality Products, and
assure Speed of service is always executed.
C. Innovation does not stop only in developing new ideas, approaches, and
strategies in achieving one’s objective, but also encompasses a change in
mindset starting from oneself in order to successfully effect changes.
39
4.1.3 Corporate Strategy
A. Develop and instill a deep and strong culture within the organization where
everyone makes a difference by being innovative and always thinking “out of
the box”.
B. Create a “Consumer and Sales Mania” mindset with high intentionality in
providing consumer satisfaction beyond expectation.
C. Provide an exceptional competitive brand differentiation through innovative
ideas and strategies.
D. Develop continuity in people and process with solid focus on competency and
capability development.
4.2 Data Result Analysis
4.2.1 Validity and Reliability
4.2.1.1 Validity test
Table 4.1 Validity test From Pre-test
Items r table r compute Result
product1 0.361 0.785 valid
product2 0.361 0.795 valid
product3 0.361 0.750 valid
product4 0.361 0.587 valid
price1 0.361 0.799 valid
price2 0.361 0.825 valid
price3 0.361 0.664 valid
price4 0.361 0.708 valid
place1 0.361 0.914 valid
place2 0.361 0.897 valid
promotion1 0.361 0.776 valid
promotion2 0.361 0.798 valid
promotion3 0.361 0.810 valid
people1 0.361 0.860 valid
40
people2 0.361 0.872 valid
people3 0.361 0.867 valid
process1 0.361 0.525 valid
process2 0.361 0.815 valid
process3 0.361 0.876 valid
physical1 0.361 0.306 invalid
physical2 0.361 0.711 valid
physical3 0.361 0.691 valid
physical4 0.361 0.729 valid
physical5 0.361 0.729 valid
Y1 0.361 0.697 valid
Y2 0.361 0.886 valid
Y3 0.361 0.930 valid
Y4 0.361 0.792 valid
Y5 0.361 0.886 valid
Y6 0.361 0.930 valid
Y7 0.361 0.930 valid
Sources: SPSS V. 16.0
In this survey, the researcher use the answer from 30 respondent as the
sample of validity test. In table 4.1 above that show from 31 question that
researcher use for research, there are one question that got the criterion as invalid
question which mean the researcher must remove from research. Like in chapter 3
about validity test, the minimum score for variable to be valid if the total respondent
is 30 respondent and use the significant level of validity test is 0.05, r ≤ 0.361
(Sugiyono, 2006). From table 4.1 above shown that the question from physical 1
shown the r is 0.306, it is mean the question for physical1 must be removed from
the question because 0.306 < 0.361. The other questioner except physical1 is valid
because R > 0.361.
41
4.2.1.2 Reliability
Table 4.2 Reliability test from pre-test (Product)
Reliability Statistics
Cronbach's
Alpha N of Items
.705 4
Sources: SPSS V.16.0
To know the reliability from variable, the cronbach’s alpha of each variable
must be > 0.600 (Malhotra; 2010). From table 4.2 show that the cronbach’s alpha
of product is 0.705. Which means the variable for product is reliable, because 0.705
> 0.600.
Table 4.3 Reliability test from pre-test (Price)
Reliability Statistics
Cronbach's
Alpha N of Items
.743 4
Sources: SPSS V.16.0
To know the reliability from variable, the cronbach’s alpha of each variable
must be > 0.600 (Malhotra; 2010). From table 4.3 show that the cronbach’s alpha
of price is 0.743. Which means the variable for price is reliable, because 0.743 >
0.600.
42
Table 4.4 Reliability test from pre-test (Place)
Reliability Statistics
Cronbach's
Alpha N of Items
.779 2
Sources: SPSS V.16.0
To know the reliability from variable, the cronbach’s alpha of each variable
must be > 0.600 (Malhotra; 2010). From table 4.4 show that the cronbach’s alpha
of place is 0.779. Which means the variable for place is reliable, because 0.779 >
0.600.
Table 4.5 Reliability test from pre-test (Promotion)
Reliability Statistics
Cronbach's
Alpha N of Items
.704 3
Sources: SPSS V.16.0
To know the reliability from variable, the cronbach’s alpha of each variable
must be > 0.600 (Malhotra; 2010). From table 4.5 show that the cronbach’s alpha
of promotion is 0.704. Which means the variable for promotion is reliable, because
0.704 > 0.600.
43
Table 4.6 Reliability test from pre-test (People)
Reliability Statistics
Cronbach's
Alpha N of Items
.653 3
Sources: SPSS V.16.0
To know the reliability from variable, the cronbach’s alpha of each variable
must be > 0.600 (Malhotra; 2010). From table 4.6 show that the cronbach’s alpha
of people is 0.653. Which means the variable for people is reliable, because 0.653
> 0.600.
Table 4.7 Reliability test from pre-test (Process)
Reliability Statistics
Cronbach's
Alpha N of Items
.629 3
Sources: SPSS V.16.0
To know the reliability from variable, the cronbach’s alpha of each variable
must be > 0.600 (Malhotra; 2010). From table 4.7 show that the cronbach’s alpha
of process is 0.629. Which means the variable for process is reliable, because 0.629
> 0.600.
44
Table 4.8 Reliability test from pre-test (Physical Evidence)
Reliability Statistics
Cronbach's
Alpha N of Items
.752 4
Sources: SPSS V.16.0
To know the reliability from variable, the cronbach’s alpha of each variable
must be > 0.600 (Malhotra; 2010). From table 4.8 show that the cronbach’s alpha
of physical evidence is 0.752. Which means the variable for physical evidence is
reliable, because 0.752 > 0.600.
Table 4.9 Reliability test from pre-test (Buying Decision)
Reliability Statistics
Cronbach's
Alpha N of Items
.944 7
Sources: SPSS V. 16.0
To know the reliability from variable, the cronbach’s alpha of each variable
must be > 0.600 (Malhotra; 2010). From table 4.9 show that the cronbach’s alpha
of buying decision (dependent variable) is 0.944. Which means the variable for
buying decision (dependent variable) is reliable, because 0.944 > 0.600.
45
4.2.2 Descriptive Statistics
4.2.2.1 Demographic
Table 4.10 Demographic View (Batch)
Batch Result Percentage
2010 55 36%
2011 28 19%
2012 46 31%
2013 21 14%
Total 150 100%
Sources: Microsoft Excel 2013
Figure 4.1 Demographic View (Batch)
Sources: Microsoft excel 2013
Table 4.10 and Figure 4.1 shown the percentage of respondent base on batch
each respondent. The big percentage of respondent has own by batch 2010 with
36% and batch 2012 with 31%. Batch 2011 just 19% and batch 2013 just 14%.
46
Table 4.11 Demographic View (Nationality)
Nationality Result Percentage
China 25 25%
Indonesia 88 58%
Vietnam 37 17%
Total 150 100%
Sources: Microsoft Excel 2013
Figure 4.2 Demographic View (Nationality)
Sources: Microsoft excel 2013
Base on table 4.11 and figure 4.2, the costumer of KFC Lippo Cikarang
distributed from three nationality there are Indonesia, china, and and Vietnam.
From Indonesia there are 88 people and 58% from 150 respondent. From China
student there are 25 people and 17% from 150 respondent. From Vietnam student
there are 37 people and 25% from 150 respondent.
Table 4.12 Demographic View (Major)
Major Result Percentage
International Business 84 25%
Banking and Finance 49 58%
Business Administration 12 17%
Accounting 4 100%
Public Relation 1 100%
Total 150 100%
47
Sources: Microsoft Excel 2013
Figure 4.3 Demographic View (Major)
Sources: Microsoft excel 2013
Base on table 4.12 and figure 4.3, the costumer of KFC Lippo Cikarang
distributed from five major there are International Business, Banking and Finance,
Business Administration, Accounting, and Public Relation. From international
business there are 84 people and 56% from 150 respondents. From banking and
finance there are 49 people and 32% from 150 respondents. From business
administration there are 12 people and 8% from 150 respondents. From accounting
there are 4 people and 3% from 150 respondents. From public relation there are 1
people and 1% from 150 respondents.
Table 4.13 Demographic View (Gender)
Gender Result Percentage
Female 78 48%
Male 72 52%
Total 150 100%
Sources: Microsoft excel 2013
48
Figure 4.4 Demographic View (Gender)
Sources: Microsoft excel 2013
Base on table 4.13 and figure 4.4, the costumer of KFC Lippo Cikarang
distributed from two gender there are male, and female. From male there are 72
people and 48% from 150 respondents. From banking and finance there are 78
people and 52% from 150 respondents.
4.2.2.2 Descriptive of All Variable
Table 4.14 Mean and Standard Deviation (Product)
Descriptive Statistics
N Mean Std. Deviation
The taste of KFC's product is good 150 3.4867 1.03455
There are many menu option in KFC 150 3.6000 1.09911
KFC product use clean tools to provide the menu 150 3.5133 1.07277
Produck in KFC is all fresh 150 3.4933 1.02811
Valid N (listwise) 150
Sources: SPSS V. 16.0
Base on table 4.15 the result of mean from question 1-4 is 3.4 -3.6. It is
mean almost all respondent say from neutral to agree for all question regarding to
the product. On table std. deviation is more than 1, from question regarding product.
It is mean the spreading of answer from agree, disagree and neutral is very
dispersed.
49
Table 4.15 Mean and Standard Deviation (Price)
Descriptive Statistics
N Mean Std. Deviation
The price of KFC in resonable Price 150 2.7067 1.16749
The price is average with the taste of KFC 150 2.9133 1.08025
The price is in our pocket 150 2.9933 1.04590
The price of the combo menu is good 150 2.7733 1.09389
Valid N (listwise) 150
Sources: SPSS V. 16.0
Base on table 4.16 the result of mean from question 1-4 is 2.7 -2.9. It is
mean almost all respondent say from disagree to neutral for all question regarding
to the price. On table std. deviation is more than 1, from question regarding price.
It is mean the spreading of answer from agree, disagree and neutral is very
dispersed.
Table 4.16 Mean and Standard Deviation (Place)
Descriptive Statistics
N Mean Std. Deviation
The place near your home 150 2.9133 1.11088
The place is ner entertaiment place 150 2.6733 1.16144
Valid N (listwise) 150
Sources: SPSS V. 16.0
Base on table 4.17 the result of mean from question 1 and 2 is 2.6 -2.9. It is
mean almost all respondent say from disagree to neutral for all question regarding
to the place. On table std. deviation is more than 1, from question regarding place.
It is mean the spreading of answer from agree, disagree and neutral is very
dispersed.
50
Table 4.17 Mean and Standard Deviation (Promotion)
Descriptive Statistics
N Mean Std. Deviation
There adverting KFC in your town is good 150 3.6533 1.05542
There are many brocure about KFC 150 3.5467 1.06555
There are many discount in KFC 150 3.0000 1.09299
Valid N (listwise) 150
Sources: SPSS V. 16.0
Base on table 4.18 the result of mean from question 1-3 is 3.0 -3.6. It is
mean almost all respondent say from neutral to agree for all question regarding to
the promotion. On table std. deviation is more than 1, from question regarding
promotion. It is mean the spreading of answer from agree, disagree and neutral is
very dispersed.
Table 4.18 Mean and Standard Deviation (People)
Descriptive Statistics
N Mean Std. Deviation
The staff of KFC is caring 150 3.9400 .82925
The staff of KFC is Friendly 150 3.8733 .73546
The teamwork of KFC is good 150 2.9267 1.20456
Valid N (listwise) 150
Sources: SPSS V. 16.0
Base on table 4.19 the result of mean from question 1-3 is 2.9 -3.9. It is
mean almost all respondent say from neutral to agree for question regarding to the
people. On table std. deviation is more than 1, from question regarding people. It
is mean the spreading of answer from agree, disagree and neutral is very dispersed.
51
Table 4.19 Mean and Standard Deviation (Process)
Descriptive Statistics
N Mean Std. Deviation
The is no long queue in KFC 150 3.5000 .99495
They Make the order is fast 150 3.6533 1.05542
The menu that we order is right 150 3.4933 1.02811
Valid N (listwise) 150
Sources: SPSS V. 16.0
Base on table 4.20 the result of mean from question 1-3 is 3.4 -3.6. It is
mean almost all respondent say from neutral to agree for all question regarding to
the process. On table std. deviation is more than 1, from question regarding process.
It is mean the spreading of answer from agree, disagree and neutral is very
dispersed.
Table 4.20 Mean and Standard Deviation (Physical Evidence)
Descriptive Statistics
N Mean Std. Deviation
The Staff use uniform 150 3.5800 .96426
The menu board is nice 150 3.7000 1.04753
The table for we eat is good 150 3.6467 1.05000
There are AC room in KFC 150 3.6333 .99270
Valid N (listwise) 150
Sources: SPSS V. 16.0
Base on table 4.21 the result of mean from question 1-4 is 3.5 -3.7. It is
mean almost all respondent say from neutral to agree for all question regarding to
the physical evidence. On table std. deviation is more than 1, from question
regarding physical evidence. It is mean the spreading of answer from agree,
disagree and neutral is very dispersed.
52
Table 4.1 Mean and Standard Deviation (Buying Decision)
Descriptive Statistics
N Mean
Std.
Deviation
I buy KFC because its taste good 150 3.6467 1.05000
I buy KFC because price of KFC product is cheap 150 2.8867 1.13242
I buy KFC because near my home or entetaiment
place 150 2.9667 1.16098
I buy KFC because there is some discount 150 3.8733 .73546
I buy KFC because the staff is nice and friendly 150 3.5133 1.07277
I buy KFC because the process in administration is
fast 150 3.5467 1.06555
I come to KFC because the place is cool 150 3.4933 1.02811
Valid N (listwise) 150
Sources: SPSS V. 16.0
Base on table 4.22 the result of mean from question 1-7 is 2.8 -3.8. It is
mean almost all respondent say from neutral to agree for all question regarding to
the buying decision. On table std. deviation is more than 1, from question regarding
buying decision. It is mean the spreading of answer from agree, disagree and neutral
is very dispersed.
53
4.2.3 Classical Regression Assumptions
4.2.3.1 Normality Test
Figure 4.5 Normality histogram
Sources: SPSS V. 16.0
Figure 4.6 Normality Plot
Sources: SPSS. V. 16.0
54
Normality test is use to test the regression model between Independent and
dependent variable is distribute well or not; because the regression model must be
normal or almost normal (Priyatno; 2008). The easy way to know the regression is
normal or not, the data must be follow the diagonal line or histogram graph. The
graphical method show the distribution from random variable and compare the
distribution to theoretical plot.
In figure 4.5 above. The histogram show the data normally distributed. The
histogram in figure 4.5 follow the line which means the data is normal distributed.
There is other way to see the data is normal, from figure 4.6 above the diagonal line
is close with the cross line. The data is close with the cross line which means the
data is normal.
4.2.3.2 Multicollinearity Test
Table 4.22 Multicollinearity Table
Collinearity Statistics
Variable Tolerance VIF
Product .662 1.510
Price .690 1.450
Place .930 1.076
Promotion .465 2.152
People .478 2.094
Process .854 1.171
Physical evidence .976 1.024
Source: SPSS V. 16.0
According to Priyatno (2008), Multicollinearty test is a test to see the
correlations between Dependent and independent variables. The result of
Multicollinearity test must be lower than 10, because the Multicollinearity test is
55
not good for each variable that related each other or the result must not higher than
10. The result for multicollinearty for Product, price, place, promotion, people,
process, and physical evidence are all lower than 10 which means the data of this
reteach are pass the multicollinearty or in this regression there is no
multicollinearty exist.
4.2.3.2 Heteroskedacity Test
The function of Heteroskedasticity test is to know the data of the research
is have a divergence each variable from regression model (Priyatno; 2008).
Heteroskedasticity test is can be seen from the scatter plot by looking at the
distribution toward the predicated value. The data questioner is spread randomly
without any specific pattern, then the data pass heteroskedasticity test.
In figure 4.7 above, the scatter plot show the data of this research is spread
randomly. The data in figure 4.7 is not make a pattern or logo which make the data
of this research there is no heteroskedasticity between independent variables with
dependent variable.
Figure 4.7 Heteroskedacity scatter plot
Sources: SPSS V. 16.0
56
4.2.3.3 Autocorrelation Test
Autocorrelation test is a have a purpose, the purpose is to know the
correlation between the Residual from an observation to another observation
(Priyatno; 2008). To know the correlation can been seen with the result of Durbin
Watson Method. The result is good enough or there is no autocorrelation problem,
if the output of Durbin Watson is between -2 to 2. Form Table 4.23, the result of
Durbin Watson is 1.954. It is means there is no autocorrelation Problem from the
data of questioner.
Table 4.23 Durbin Watson Table
Sources: SPSS V. 16.0
4.2.4 F test and T-test
4.2.3.1 F-Test
F test is used to know the influence or relationship between x variable
(independent) and y (dependent) variable (Priyatno; 2008).
Ho: β8 = 0 is accepted if the value of F is greater than 0.05 (Marketing Mix has
simultaneously no influence to the buying decision.)
Ha: β8 ≠ 0 is accepted if the value of F is less than 0.05 (Marketing Mix has simultaneously
an influence to the buying decision)
Durbin-Watson
1.954
57
This result of this research use SPSS V. 16.0 for F-Test is shown in table below
Table 4.24 F-Test table
ANOVAb
Model Sum of Squares df Mean Square F Sig.
1 Regression 104.661 7 14.952 48.694 .000a
Residual 43.601 142 .307
Total 148.262 149
a. Predictors: (Constant), physical, product, place, price, process, people,
promotion
b. Dependent Variable: y
Sources: SPSS V. 16.0
The requirement significant value for F test is must be less than 0.05. It can
be seen that the significant value of the F test is 0.000. Which mean the significant
value is less than 0.05 value. From table 4.23 above, marketing mix of 7p (product,
price, place, promotion, people, process, and physical evidence) simultaneously has
an influence to the buying decision. This research will accept Ha and reject Ho
4.2.3.1 T-Test
T Test is used to know the influence between each independent variables to
dependent variable (Priyatno; 2008). The level significance is α is 0.05. The hypotheses
is following:
A. Ho: β1 = 0: Product has significant partially no influence to the buying decision.
Ha: β1 ≠ 0: Product has significant partially an influence to the buying decision.
B. Ho: β2 = 0: Price has significant partially no influence to the buying decision.
Ha: β2 ≠ 0: Price has significant partially an influence to the buying decision.
C. Ho: β3 = 0: Place has significant partially no influence to the buying decision.
Ha: β3 ≠ 0: Place has significant partially an influence to the buying decision.
D. Ho: β4 = 0: Promotion has significant partially no influence to the buying decision.
Ha: β4 ≠ 0: Promotion has significant partially an influence to the buying decision
58
E. Ho: β5 = 0: People has significant partially no influence to the buying decision.
Ha: β5 ≠ 0: People has significant partially an influence to the buying decision
F. Ho: β6 = 0: Process has significant partially no influence to the buying decision.
Ha: β6 ≠ 0: Process has significant partially an influence to the buying decision
G. Ho: β7 = 0: Physical evidence has significant partially no influence to the buying
decision.
Ha: β7 ≠ 0: Physical evidence has significant partially an influence to the buying
decision
Table 4.25 T-Test table
Model
Unstandardized Coefficients Standardized Coefficients
t Sig. B Std. Error Beta
1 (Constant) -2.020 .464 -4.355 .000
product .183 .062 .166 2.976 .003
price -.059 .068 -.047 -.861 .390
place -.050 .067 -.035 -.740 .460
promotion .159 .084 .127 1.899 .060
people .421 .066 .418 6.344 .000
process .451 .101 .414 8.415 .000
physical .100 .062 .074 1.600 .112
a. Dependent Variable: y
Sources: SPSS V. 16.0
From table 4.24 that show the significant value each variable. Here is the
result for each variable.
A. Product from marketing mix has significant value is 0.003, which less than 0.5.
That value means that product partially has significant influence to buying
decision and Ho is rejected and Ha is accepted from the hypothesis.
B. Price from marketing mix has significant value is 0.390, which greater than 0.5.
That value means that price partially has no significant influence to buying
decision and Ha is rejected and Ho is accepted from the hypothesis.
59
C. Place from marketing mix has significant value is 0.460, which greater than 0.5.
That value means that place partially has no significant influence to buying
decision and Ha is rejected and Ho is accepted from the hypothesis.
D. Promotion from marketing mix has significant value is 0.060, which greater
than 0.5. That value means that promotion partially has no significant influence
to buying decision and Ha is rejected and Ho is accepted from the hypothesis.
E. People from marketing mix has significant value is 0.000, which less than 0.5.
That value means that people partially has significant influence to buying
decision and Ho is rejected and Ha is accepted from the hypothesis.
F. Process from marketing mix has significant value is 0.000, which less than 0.5.
That value means that process partially has significant influence to buying
decision and Ho is rejected and Ha is accepted from the hypothesis.
G. Physical evidence from marketing mix has significant value is 0.112, which
greater than 0.5. That value means that physical evidence partially has no
significant influence to buying decision and Ha is rejected and Ho is accepted
from the hypothesis.
From all result above. In this research there are 3 factor from marketing mix
which partially has influence to President University student buying decision.
There are Product, people, and process which partially influence to President
University student buying decision. 4.2.5
4.2.5 Multiple Regression Model
Multiple regression models is a practical extension of simple regression in
which it allow user to build a model with several independent variables (Stair, JR
and Hanna; 2009). There are a lot independent variables that used for this research,
because the research use multiple regression model in order to explain the
correlation between independent and dependent variables.
𝑌 = 𝐵0 + 𝐵1𝑋1 + 𝐵2𝑋2 + 𝐵3𝑋3 + 𝐵4𝑋4 + 𝐵5𝑋5 + 𝐵6𝑋6 + 𝐵7𝑋7 + 𝜀
In table 4.25 show the factor that particularly influence to dependent
variable. There are product people and process which influence to President
University Student buying decision process.
60
Table 4.26 Significant Table
Model
Unstandardized Coefficients Standardized Coefficients
t Sig. B Std. Error Beta
1 (Constant) -2.020 .464 -4.355 .000
product .183 .062 .166 2.976 .003
price -.059 .068 -.047 -.861 .390
place -.050 .067 -.035 -.740 .460
promotion .159 .084 .127 1.899 .060
people .421 .066 .418 6.344 .000
process .451 .101 .414 8.415 .000
physical .100 .062 .074 1.600 .112
a. Dependent Variable: y
Sources: SPSS V. 16.0
There are four independent variables that have no influence to buying
decision. There are price, place, promotion and physical evidence.
𝑌 = −2.020 (𝑐𝑜𝑛𝑠𝑡𝑎𝑛𝑡) + 0.183(𝑝𝑟𝑜𝑑𝑢𝑐𝑡) + 0.421 (𝑝𝑒𝑜𝑝𝑙𝑒)
+ 0.451 (𝑃𝑟𝑜𝑐𝑒𝑠𝑠) + 𝜀
4.2.6 Coefficient Determination
Coefficient of determination is used to test the value that indicated how
much suitable the independent variables to dependent variable (Mark et all,
2006). In the coefficient determination will used R2 which reflect the degree of
suitable from independent variables to dependent variable.
61
Table 4.27 Coefficient Determination
Model Summaryb
Model R R Square
Adjusted R
Square
Std. Error of
the Estimate
Durbin-
Watson
1 .840a .706 .691 .55412 1.954
a. Predictors: (Constant), physical, product, place, price, process, people,
promotion
b. Dependent Variable: y
Sources: SPSS V. 16.0
From table 4.26, the value of r show the coefficient of correlation. The value
of R is 0.840, it is means the independent variables have a strong correlation with
dependent variable. The adjusted R square is to know how the independent
variables influence the dependent variable. In table 4.26 the value of adjusted R
square is 0.691, that is means the marketing mix of 7p’s Explained about 69, 1% to
President University student buying decision. And rest of 30, 9% is affecting by
another factor which is not discuss in this research.
4.3 Interpretation of result
The validity test shows the significant each variable all must higher than
0,361. And the result from the validity test is all statement is valid accept one
statement is first statement from Physical evidence variable. The reliability test
show the Cronbach’s alpha value must be higher than 0.6. And all variable is past
the reliability test.
The result of T-test is show the significant each variables in this research.
First is product with significant value is 0.003. Second is price with significant
value is 0.390. Third is price with significant value is 0.460. Fourth is promotion
with significant value is 0.60. Fifth is people with significant value is 0.000. Sixth
is process with significant value is 0.000. The last variable is physical evidence
with significant value is 0.112. The independent variables will partially has
62
influence to dependent variable if the significant of independent variables is lower
than 0.05. Thus there are three are 3 independent variables (marketing Mix 7p’s)
which has influence with dependent variable (Buying Decision) are Product,
people, and process.
The significant value of F-test result must be 0.000 or less than 0.05. The
significant value is show the independent variables has simultaneously influence to
dependent variable. The significant value of F-test is 0.000. Thus, the independent
variables (Marketing Mix 7p’s) has simultaneously influence to dependent variable
(buying Decision)
In regression model. Multiple regression models is a practical extension of
simple regression in which it allow user to build a model with several independent
variables. With the result of T-test, there are three independent variables which
have significant. With that three independent variables, the researcher can build the
multiple regression model. Here is the multiple region model in this researcher. Y=
-2.020 (constant) + 0.183(product) + 0.421 (people) +0.451 (Process) + ε.
In coefficient determination result determination will used R2 which reflect
the degree of suitable from independent variables to dependent variable. From table
4.26, the value of r show the coefficient of correlation. The value of R is 0.840, it
is means the independent variables have a strong correlation with dependent
variable. The adjusted R square is to know how the independent variables influence
the dependent variable. In table 4.26 the value of adjusted R square is 0.691, that is
means the marketing mix of 7p’s affecting about 69, 1% to President University
Student buying decision. And rest of 30, 9% is affecting by another factor which is
not discuss in this research
63
CHAPTER V
CONCLUSION AND RECOMENDATION
This chapter five will discuss about the conclusion and recommendation
form the analysis in chapter four regarding the influence of marketing mix of 7p’s
towards President University Student buying decision. The analysis is to know that
marketing 7p’s has influence in buying decision and which factor who has most
influence on the President University Student buying decision.
5.1 Conclusions
According to Chapter Four about the analysis of 7ps of influence to
President University Student Buying Decision around, here some conclusion that
researcher get:
A. According to T-test result that discuss in chapter four. In T-test can be seen
around seven independent variables in marketing mix 7p’s, there are just three
variable has significant influence to President University Student buying
decision. One of them is Product with significant value 0.003. Same with
research of Andrey and Achmad, product is also have significant influence to
buying Decision.
B. According to T-test result that discuss in chapter four. In T-test can be seen
around seven independent variables in marketing mix 7p’s, price do not have
significant influence to buying decision, Same with research of Yugi, price is
also do not have significant influence to buying Decision
C. According to T-test result that discuss in chapter four. In T-test can be seen
around seven independent variables in marketing mix 7p’s, place do not have
significant influence to buying decision.
D. According to T-test result that discuss in chapter four. In T-test can be seen
around seven independent variables in marketing mix 7p’s, Promotion do not
have significant influence to buying decision, Same with research of Satmoko,
Ekowati, Intan, and Yugi , promotion is also do not have significant influence
to buying Decision
64
E. According to T-test result that discuss in chapter four. In T-test can be seen
around seven independent variables in marketing mix 7p’s, there are just three
variable has significant influence to President University Student buying
decision. One of them is People with significant value 0.000. Same with
research of Silvia and Isnaini, people is also have significant influence to
buying Decision.
F. According to T-test result that discuss in chapter four. In T-test can be seen
around seven independent variables in marketing mix 7p’s, there are just three
variable has significant influence to President University Student buying
decision. One of them is Process with significant value 0.000. Same with
research of Silvia and Isnaini, Process is also have significant influence to
buying Decision.
G. According to T-test result that discuss in chapter four. In T-test can be seen
around seven independent variables in marketing mix 7p’s, physical Evidence
do not have significant influence to buying decision.
H. According to F-Test result which discuss in chapter four. It show that all on
independent variables of marketing mix 7p’s (Product, Price, Place, Promotion,
People, Process, and Physical Evidence) has significant influence to President
University Student buying decision. It can be seen from table 4.23 the F
significant Value. The value of significant is 0.000 which less than 0.05.
I. According to Coefficient determination result which discuss in chapter four.
Marketing Mix 7p’s have influence to buying decision around 69,1 % and 30,9
% was affecting by the other variable.
5.2 Recommendation
In conclusion above show the researcher finding in this research. There are
some possible course of action can be identified. The recommendation and
suggestion for consideration and possible product by PT. Fast food Indonesia with
dealing with their product sales. There some recommendation are made to PT Fast
Food Indonesia:
65
A. Based on conclusion above there are three independent variables which have
influence to buying decision. First is Product. According to this researcher. A
taste is one of President University Student needs. The taste of Fried chicken in
KFC is good that will increase of sales of Product in KFC. It means President
University Student want the good taste of Fried chicken rom KFC and to Hold
the taste of product in KFC to keep and increase the taste of product
B. The second independent variables is people. According to this researcher. An
attitude from the staff is one of President University Student needs. The attitude
from the staff from the diligent want to help the costumer is good that will
increase of sales of Product in KFC. It means President University Student want
the kindness form staff in KFC and to Hold Quality of the people in KFC.
C. The last independent variables is process. According to this researcher. A good
management in administration stuff is one of President University Student
needs. Focus for what customer order and quick process in KFC is good that
will increase of sales of Product in KFC. It means President University Student
want Focus for what customer order and quick process from KFC and to Hold
concentrate for what customer order and quick process in KFC to keep and also
increase the process in administration.
D. In the end the 3 variable from marketing mix 7p’s has to keep increase if the
company want boost their sales. From Product, people, and process, that all will
contribute in case to increase their sales. Give the influence on customer buying
decision around President University student.
5.3 Recommendation for the future study
For the future study, the researcher recommendation to get the higher R
square and all the independent variables will be have influence to dependent study.
Thus, for the future study can start over with other fast food Restaurant.
A future Research can use the other variable to measure the purchasing
decision in KFC. The other variable that the researcher is like brand equity. And
last is the future research can use wider population in different case study.
66
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69
APENDIX I
70
Questionnaire
Gender :
Batch :
Nationality :
Major :
Are you ever bought KFC Lippo Cikarang Product: yes no
Keep in mind that the questionnaire thereis no right or wrong answer. Give the
answer that truly represent yourself personally. No answer given will be kept
confidential, therefore give completely honest answers to all statements.
Answer Choices:
SD : Strongly Disagree
D : Disagree
N : Neutral
A : Agree
SA : Strongly Agree
Buying Decision
No Question SD D N A SA
1. I buy KFC because its taste good
2. I buy KFC because price of KFC
product is achievable
3. I buy KFC because near my home or
entetaiment place
4. I buy KFC because there is some
discount
5. I buy KFC because the staff is nice and
friendly
71
6. I buy KFC because the process in
administration is fast
7. I come to KFC because the place is cool
Product
No Question SD D N A SA
1. The taste of KFC's product is good
2. There are many menu option in KFC
3. KFC product use clean tools to provide
the menu
4. Product in KFC is all fresh
Price
No Question SD D N A SA
1. The price of KFC in resonable Price
2. The price is average with the taste of
KFC
3. The price is affordable
4. The price of the combo menu is good
Place
No Question SD D N A SA
1. The place near your home
2. The place is near entertaiment place
72
Promotion
No Question SD D N A SA
1. There adverting KFC in your town is
good
2. There are attractive brocure about KFC
3. There are many discount in KFC
People
No Question SD D N A SA
1. The staff of KFC is caring
2. The staff of KFC is Friendly
3. The teamwork of KFC is good
Process
No Question SD D N A SA
1. The is no long queue in KFC
2. They Make the order is fast
3. The menu that we order is right
Physical Evidence
No Question SD D N A SA
1. The place is intersting
2. The Staff use uniform
3. The menu board is nice
4. The table for we eat is good
5. There are AC room in KFC
Thank You
73
APPENDIX II
Transcript of Interview
KFC Lippo Cikarang.
25 December 2013
Nara Sumber:
Theo, Shift Leader KFC Lippo Cikarang
Theo: Selamat sore pak, ada yang bisa di bantu?
Researcher: saya Wisnu Pak, mahasiswa dari president University. Bisa Minta
waktu nya pak untuk interview untuk keperluan skripsi saya pak.
Theo: Ok silakan, Tapi jangan terlalu lama.
Researcher: boleh nama nya siapa pak dan bagian apa?
Theo: nama saya theo dari bagian shift leader.
Researcher: bapak di sini kerja sudah berapa lama?
Theo: dari sebelum bapak lahir. Sekitar tahun 1991.
Researcher: apa si pa yang di baganngakan dari KFC Lippo cikarang ini pak.
Theo: kan sudah terlihat jelas dari slogan kami, “jagonya ayam”, ya sudah pasti
Ayam Goreng nya.
Researcher: dari bagian marketing mix pak, seperti product, price, promotion,
place, people, process, and physical evidence, menurut bapak mana pak yang
paling berpengaruh pada KFC Lippo Cikarang?
Theo: Tentu saja product, karena memang kami menjual rasa ayam Goreng yang
sangat special.
Researcher: nahh. Kalo boleh tau siapa aja si.yang biasa makan disini pak?
74
Theo: banyak, seperti keluarga anak muda pegawai. Banyak la pokoknya.
Researcher: kalo begitu banyak juga pak mahasiswa dari president university
yang dating kemari.
Theo: ya banyak la. Perbandingan nya sekitar 50; 50 dengan pegawai dan
keluarga.
Researcher: bagaimana cara bapak mengenaili mahasiswa president university
sama yang bukan pak?
Theo: gampang, kalo mahasiswa president masi muda muda atau remaja, sedang
yang bukan suda terliat tua.
Researcher: okk. Bapak tau pak tentang di buka Mcdonalds baru di jababeka pak?
Theo: tau.
Researcher: ada dampak pada kedatangan mahasiswa president tidak pak sejak
muncul nya Mc. Donalds Jababeka?
Theo: Ada si ada , tapi tidak pengaruh besar, sangat kecil sekali bahkan hamper
tidak terasa.
Researcher:lalu pak menurut bapak kenepa pak mahasiswa president masi mau
datang ke KFC Lippo cikarang ini?
Theo: pasti setiap perusahaan punya keunikan tersendiri, dan dari situlah kami tau
bahwa kami berbeda, walaupun banyak pesaing bermunculan tetap bermunjulan,
kami tidak takut sama sekali.
Researcher: ok d pak terima kasih atas waktu nya dan kesempatan nya, sekarang
saya ingin makan dulu pak.
Theo: ok ok, silakan , dan terima kasi sudah mau dating ke sini
Researcher: sama sama pak. Terima kasih banyak.
75
APPENDIX III
Variables Entered/Removedb
Model Variables Entered Variables Removed Method
1 physical, product, place,
price, pocess, people,
pomotiona
. Enter
a. All requested variables entered.
b. Dependent Variable: y
Model Summaryb
Model R R Square Adjusted R Square
Std. Error of the
Estimate Durbin-Watson
1 .840a .706 .691 .55412 1.954
a. Predictors: (Constant), physical, product, place, price, pocess, people, pomotion
b. Dependent Variable: y
ANOVAb
Model Sum of Squares df Mean Square F Sig.
1 Regression 104.661 7 14.952 48.694 .000a
Residual 43.601 142 .307
Total 148.262 149
a. Predictors: (Constant), physical, product, place, price, pocess, people, pomotion
b. Dependent Variable: y
76
Coefficientsa
Model
Unstandardized
Coefficients
Standardized
Coefficients
t Sig.
Collinearity
Statistics
B Std. Error Beta Tolerance VIF
1 (Constant) -2.020 .464 -4.355 .000
product .183 .062 .166 2.976 .003 .662 1.510
price -.059 .068 -.047 -.861 .390 .690 1.450
place -.050 .067 -.035 -.740 .460 .930 1.076
pomotion .159 .084 .127 1.899 .060 .465 2.152
people .421 .066 .418 6.344 .000 .478 2.094
pocess .451 .101 .414 8.415 .000 .854 1.171
physical .100 .062 .074 1.600 .112 .976 1.024
a. Dependent Variable: y
Collinearity Diagnosticsa
Mode
l
Dimensio
n
Eigenvalu
e
Conditio
n Index
Variance Proportions
(Constan
t)
produc
t
pric
e
plac
e
pomotio
n
peopl
e
poces
s
physic
al
1 1 7.726 1.000 .00 .00 .00 .00 .00 .00 .00 .00
2 .104 8.628 .01 .15 .00 .03 .01 .17 .00 .06
3 .053 12.058 .00 .61 .10 .00 .03 .16 .00 .03
4 .038 14.194 .00 .05 .13 .02 .03 .32 .02 .48
5 .031 15.888 .00 .01 .42 .37 .00 .09 .02 .16
6 .023 18.412 .01 .07 .00 .25 .11 .06 .52 .03
7 .018 20.483 .00 .07 .33 .14 .82 .12 .03 .02
8 .007 32.752 .98 .03 .02 .19 .00 .08 .41 .23
a. Dependent Variable: y
77
Residuals Statisticsa
Minimum Maximum Mean Std. Deviation N
Predicted Value 1.2986 4.6435 2.8905 .83811 150
Residual -1.46269 1.66124 .00000 .54095 150
Std. Predicted Value -1.899 2.092 .000 1.000 150
Std. Residual -2.640 2.998 .000 .976 150
a. Dependent Variable: y
Charts
78