THE ROLE OF ETHNOCENTRISM IN THE BUYING PROCESS OF ... filePeningkatan tren globalisasi dan kemajuan...

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THE ROLE OF ETHNOCENTRISM IN THE BUYING PROCESS OF DOMESTIC PRODUCT (Study on Leather Bag Made in Manding, Yogyakarta) THESIS Compiled to complete the requirements to achieve Master of Management Written by Dewantika Noor Hidayati Kusmono S411302010 MASTER OF MANAGEMENT POST GRADUATE SEBELAS MARET UNIVERSITY SURAKARTA 2015

Transcript of THE ROLE OF ETHNOCENTRISM IN THE BUYING PROCESS OF ... filePeningkatan tren globalisasi dan kemajuan...

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THE ROLE OF ETHNOCENTRISM IN THE BUYING PROCESS OF

DOMESTIC PRODUCT

(Study on Leather Bag Made in Manding, Yogyakarta)

THESIS

Compiled to complete the requirements to achieve Master of Management

Written by

Dewantika Noor Hidayati Kusmono

S411302010

MASTER OF MANAGEMENT

POST GRADUATE

SEBELAS MARET UNIVERSITY

SURAKARTA

2015

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ABSTRACT

THE ROLE OF ETHNOCENTRISM IN THE BUYING PROCESS OF

DOMESTIC PRODUCT

(Study on Leather Bag Made in Manding, Yogyakarta)

Dewantika Noor Hidayati Kusmono

S411302010

The increase trend of globalization and advance technology in communication and

transportation enable the consumers to access great variety of products and services from

other countries. The competition between domestic and foreign corporations became

interesting to be studied.

The objective of this researchexplains the relationship among of the observed

variables. There are six relationship, namely, perceived quality and price fairness toward

consumer attitudes toward domestic product, consumer attitudes toward intention to buy

domestic product. Last, role of ethnocentrism as the moderation in this research.

The data is collected by survey and guided by questionnaire to 250 respondents. The

survey is conducted in Yogyakarta by using a convenience sampling method. The constructed

model were measured using five point Likert scale.

The findings show that consumer attitudes toward Leather Bag in Manding is

influenced by price fairness and perceived quality.In the relationship between perceived

quality, price fairness, consumer attitudes, and intention to buy, the ethnocentrism did not

play a moderation role.

Keywords : Ethnocentrism, Consumer Attitudes, Domestic, Intention to buy, Perceived quality, Price

Fairness.

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ABSTRAK

PERAN ETNOSENTRISME DALAM PROSES PEMBELIAN PRODUK DOMESTIK

(Studi Pada Tas Kulit Buatan Manding, Yogyakarta)

Dewantika Noor Hidayati Kusmono

S411302010

Peningkatan tren globalisasi dan kemajuan teknologi komunikasi dan transportasi

memungkinkan konsumen untuk mengakses berbagai macam produk dan jasa dari negara

lain. Persaingan antara perusahaan domestik dan asing menjadi menarik untuk dikaji.

Tujuan dari penelitian ini untuk menjelaskan hubungan antara variabel yang diamati. Ada

enam hubungan, yaitu, persepsi kualitas dan kewajaran harga terhadap sikap konsumen

terhadap produk domestik, sikap konsumen terhadap niat untuk membeli produk dalam

negeri. Terakhir, peran etnosentrisme sebagai moderasi dalam penelitian ini.

Data dikumpulkan oleh survei dan dipandu oleh kuesioner kepada 250 responden.

Survei dilakukan di Yogyakarta dengan menggunakan metode convenience sampling. Model

dibangun diukur dengan menggunakan lima titik skala Likert.

Temuan menunjukkan bahwa sikap konsumen terhadap Tas Kulit Manding di

dipengaruhi oleh kewajaran harga dan persepsi kualitas. Dalam hubungan antara persepsi

kualitas, keadilan harga, sikap konsumen, dan niat untuk membeli, etnosentrisme tidak

memainkan peran moderasi.

Kata kunci: Etnosentrisme, Sikap Konsumen, Produk domestik, Niat Pembelian, Persepsi

Kualitas, Kewajaran Harga.

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MOTTO

“PMA. Positive Mental Attitudes”

Paarsbat

“The most beautiful Make up of a woman is passion”

Yves Saint-Laurent

“Simplicity is the keynote of all the true elegance”

Coco Channel

“A respectable appearance is sufficient to make people more interested in your soul”

Karl Lagerfeld

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I dedicated this thesis to my increadible team

“Mom, Dad, Brother, Sister, and Beloved Partner”

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PREFACE

Greates thanks to :

1. Prof. Dr. Hartono, MS as a chairmam of the UNS Magister Management Program

2. Dr. Budhi Haryanto, MM as a great and increadible advisor

3. All lecture of the UNS Magister Management Program

4. Drs Sumono, Msi and Dra Kustinah, you are all the reason for this hardwork

5. Muhammad Rahardian Kusmono and Wardani asa great supporter

6. Muhammad Adhitya Farkhaan Zamzami as a super partner

7. Kansas, SP, Big Family, and Solo Young Designers as the colour of my day

8. My new family in 40 class of Magister Management, you are rock guys

Surakarta, 1 Desember 2014

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CONTENT LIST

TITTLE ......................................................................................................... i

OFFICIAL LETTER ..................................................................................... ii

APPROVAL .................................................................................................. iii

STATEMENT ................................................................................................ iv

MOTTO ......................................................................................................... V

DEDICATION ............................................................................................... vi

PREFACE ......................................................................................................

CONTENT LIST ...........................................................................................

vii

viii

LIST OF TABLES ........................................................................................ xi

LIST OF DIAGRAMS .................................................................................. xii

ABSTRACT .................................................................................................. xiii

CHAPTER I INTRODUCTION

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

1.2. Research Problems .................................................................................. 5

1.3. Research Objective ................................................................................. 7

1.4. Research Contribution ............................................................................ 7

1.5. Research Justification ............................................................................. 8

CHAPTER II THEORITICAL BACKGROUND HYPHOTESIS

2.1. Study Position ........................................................................................ 10

2.2. Discussion of Observed Variables and Hyphotesis Formula ...................

2.2.1. Consumer Attitudes .................................................................... 12

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2.2.2. The Perceived Quality ................................................................. 13

2.2.3. The Perceived Price Fairness ...................................................... 15

2.2.4. Intention To Buy Domestic Product ........................................... 16

2.2.5. Ethnocentrism ............................................................................. 17

2.3. Theoritical Model .................................................................................. 20

CHAPTER III RESEARCH METHODOLOGY

3.1. The Study Scope .................................................................................... 23

3.2. Sampling and Data Collection Method .................................................. 24

3.3. Operational Definition and Research Instrumental Mesurement

3.3.1. Perceived Quality ........................................................................ 25

3.3.2. Price Fairness .............................................................................. 25

3.3.3. Ethnocentrism ............................................................................. 26

3.3.4. Consumer Attitudes .................................................................... 26

3.4. Analysis Method

3.4.1. Descriptive Analysis ................................................................... 27

3.4.2. Statistical Analysis ...................................................................... 27

3.4.3. Structural Equation Modeling Analysis ...................................... 28

CHAPTER IV FINDINGS AND DISCUSSION

4.1. Descriptive Analysis Result .................................................................... 33

4.2. Research Instrument Analysis

4.2.1. Validity Test ................................................................................. 35

4.2.2. Reliability Test ............................................................................. 36

4.2.3. Normality Test ............................................................................. 37

4.3. Structural Equation Modeling Analysis

4.3.1. The Sample Adequacy ................................................................. 39

4.3.2. Outliers ......................................................................................... 39

4.3.3. Goodness of Fit Analysis ............................................................. 41

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4.3.4. Modification ................................................................................ 42

4.4. Moderation Analysis ............................................................................... 43

4.5. Hypothesis Analysis and Discussion ...................................................... 48

4.5.1. Relationship Between Perceived Quality and Consumer Attitudes 49

4.5.2. Relationship Between Price Fairness and Consumer Attitudes 50

4.5.3. Relationship Between Intention to Buy and Consumer Attitudes 51

4.5.4. Relationship Between Perceived Quality, Price Fainrness, Toward

Consumer Attitudes, and Consumer Attitudes toward Intention to

Buy Moderating by Ethnocentrism ................................................

53

CHAPTER V CONCLUSION AND IMPLICATION

5.1. Conclusion .............................................................................................. 58

5.2. Implication

5.2.1. Theoritical Implication ................................................................. 59

5.2.2. Practical Implication .................................................................... 59

5.2.3. Future Study Implication ............................................................. 60

5.3. Limitation ............................................................................................... 61

BIBLIOGRAPHY ......................................................................................... 62

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LIST OF TABLES

Appendix 1 Respondent Distribution

Appendix 2 Convergent Validity Variable of Perceived Quality

Appendix 3 Convergent Validity Variable of Price Fairness

Appendix 4 Convergent Validity Variable of Ethnocentrism

Appendix 5 Convergent Validity Variable of Consumer Attitudes

Appendix 6 Convergent Validity Variable of Intention to Buy

Appendix 7 Convergent Validity Test

Appendix 8 Convergent Reliability Result

Appendix 9 Normality Test Result

Appendix 10 Outliers Test Result

Appendix 11 Evaluation of Goodness-of-Fit indices

Appendix 12 Evaluation of Goodness-of-Fit indices After Modified

Appendix 13 Hyphotesis Testing Result

Appendix 14 Hyphotesis Testing Result of Moderation

Appendix 15 Questioner

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LIST OF DIAGRAM

1.1 Theoritical Framework ............................................................................ 21

Appendix 9 Normality Test Result ............................................................... 89

Appendix 12 Evaluation of Goodness-of-Fit indices After Modified ............ 94

Appendix 14 Hyphotesis Testing Result of Moderation ............................... 96