In this paper will investigate about factors that determine student’s choice of buying Samsung android smartphone in President University, Cikarang, Indonesia. The proposed study of this paper distributes questionnaire consist of 25 questions including product, price, place, promotion, brand equity and customer buying decision. A sample 83 people are selected randomly at President University and they are asked to reply the questions on Likert scale based. The results by using mean analysis show there are dominant factors in determining student’s choice of buying Samsung android smartphone related to marketing mix (4Ps) and brand equity. Brand equity and Product have the highest role to influence customer buying decision among other factors, which means customers are care more about brand equity, product’s quality and features. Finally among different characteristic people are interested in having worldwide brand product with features that compatible with their needs. Keywords: Market, marketing mix, brand equity, customer buying decision, research journal
Communication is important part of human life and in business world, it is key to any business success. How potential clients got the information of products will determine how high the possibility of them making deal with the company (myownbusiness.org, 2012). The demand of the telecommunication industry for advanced mobile devices already answered by Samsung. Samsung which is belong to smartphone is a device that has phone capability and able to performs some functions of the computer. It is capable of text messaging, camera, video recorder, e-mail, internet, e-book reader, push to talk, review and edit documents, global positioning system capability, and many other applications (myownbusiness.org, 2012). Samsung sees every challenge as an opportunity with its world recognized constant innovation and top quality products and built a strategic emerging information industry . From the result of the technological capabilities development adhered to its founder philosophy and top management, they opened up its technology to its clients, partners, and developers to achieve long run benefit building technology ecosystem and forecast their future fair share of rewards by maintaining the constant innovation. Samsung Android Smartphone’s shipments is number one in the world, nevertheless, in Indonesia Samsung’s sales is number 3 left behind by Nokia on the first place and Cross on the second place .
Although has been critized by number of studies like Lauterborn (1990), propovic (2006), Moller (2006), and fakeideas (2008), 4p remain staple of the marketing mix . Yudelson 1999 in Gandolfo Dominici redefined product as: all the benefits through time that the user obtains from the exchange. Positioning is a technique of how marketers try to create image or identity of a product, brand, or company in consumers’ mind. It is a matter of perception where the product is on a market-how consumers see throughout the product and how they compare it to the competitors . Hence, consumers are more interested in having exclusive product that make them different from others because they belief that the product they are using will represents their personality . Set the pricing for artistic products and activities should considering and following the current logic trend . Where there is a monopoly, the price will be higher.
A company can set a higher price to segment which has high sales power and give lower price to segment with lower sales power . Yudelson, (1999) in explains price as everything given by the acquirer in terms of money, time, and effort given to obtain the product. Consumers assume that the evaluation of products’ condition is based on its pricing policy. The product’s marking on consumers’ mind will be influenced by the combination of the advertisement, distribution channel, and brand equity. . The distribution policy set by company will help the product penetration to the market . After product is being penetrated, advertisement and promotion takes a high role to built, promote a product, and als create perception of trust on the customer and built a purchase relations . The more advertisement release to the market, the better market exposure will be, and the bigger awareness on market characteristics will be . Along with brand equity, marketing mix with its elements (product, price, place, promotion) are a fundamental components of a marketing plan to determine customers’ buying decision .
Figure 1. The Black Box Model of consumer behavior. Adapted from “marketing” by W. Keegan, S. Moriarty, T. Duncan, 1992, p. 193. Englewood Cliffs, NJ: prentice-Hall.
I.1. Research Framework
II.1. Subject and Study Design
The target population of this research is local President University students in Jababeka, Cikarang Baru batch 2009 to 2012. By using multiple regression sampling method because the total population of students who are using Samsung Android smartphone was unknown, the total sample of this research was 83 students. Data collection was done by spreading questionnaires to random 80 male and female students age 18 to 23 who were suing Samsung android smartphone in November 6 to 10, 2012. This research was done in 13 weeks. II.2. Instruments
The data employed to analyses the determine factors that influence students choice of buying Samsung android smartphone was collected through a marketing survey. The instrument used to collect the primary data was a questionnaire. This tool was selected because of its numerous advantages since each respondent would receive the same questions. Questionnaire can reduce error made by interviewer while recording the responses, quarantee confidentiality and respondents could act without any fear or embarrassment . The questions were divided into two segments as follow: 1. The first part will be demographic questionnaires consist of name, age, gender, and income. 2. On the second part, there will be 21 questions under 5 independent variables (product, price, place, promotion, and brand equity) and 4 questions under dependent variable of customer buying decision. On the second segments responses were measured on a 5 point likert scale in . 5 point on the likert scales are strongly disagree (1), disagree (2), either agree nor disagree (3), agree (4), and strongly agree (5).
I am satisfied with the design of Samsung android smartphone
I buy Samsung Android smartphone because the model is up to date and fashionable
I am satisfied with the features (applications, multimedia, camera, sound, etc) Samsung android smartphone has
Samsung android smartphone is easy to use and hold (firm, fit on the right size)
I buy Samsung android smartphone as telecommunication device (call, text message, email, read document, business activity)
I buy Samsung android smartphone as entertainment device (multimedia, social network, games, fashion use)
I can easily find a place to buy Samsung android smartphone
I can easily find place to repair (service) my Samsung android smartphone
I prefer buy Samsung android smartphone directly at store than at online shop
Samsung android smartphone’s price is affordable
For the product’s value offered, the price set is not expensive
Samsung android smartphone’s price is more preferably than other smartphone with similar quality
Samsung android smartphone TV ads is very attractive
I like Samsung android smartphone’s endorser (someone who become model in an ads)
I want to buy Samsung android smartphone after watching its TV ads
I like Samsung android smartphone’s posters and billboards
BRAND EQUITY (X5)
I buy Samsung android smartphone based on my colleagues’ suggestion
If I want to buy a smartphone, I will think to buy Samsung android smartphone on the first place
I buy Samsung android smartphone because I like the name
I buy the brand Samsung Android Smartphone because it is a worldwide brand
I like Samsung’s company logo
CUSTOMER BUYING DECISION (Y)
I will buy Samsung Android smartphone if my current’s smartphone is broken and can not be repaired
I buy Samsung Android Smartphone to fulfill my telecommunication device need
I prefer to buy Samsung android smartphone than other products
In overall, I’m satisfied with Samsung android smartphone product
II.3. Substantial Analysis
The data were evaluated by using specialized software – the Statistical Package for Social Sciences (SPSS) ver. 17.0 with factor analysis approach to construct the data. II.4. Hypothesis
The hypotheses formulated after reviewing the relevant literature are: H1:
Product factors have a strong association with consumer behavior. H2: Place factors have a strong association with consumer behavior. H3: Price factors have a strong association with consumer behavior H4: Promotion factors have a strong association with consumer behavior. H5: Brand Equity factors have a strong association with consumer behavior. Hypotheses testing were confined to the primary data collected from President University area. IV. RESULT
IV.1. Respondents’ demographic analysis
Among all samples collected from President University students who lived in President University Student housing and rented house nearby, about 66,5% of the participants were female, and the remaining 33,7% were man. 57.8% of the participants were 20 years or younger, while 42.2% of the participants aged between 21 to 25 years. 26,5% were having income bellow Rp. 1.000.000,- , 38.5% were having between Rp. 1000.000,- to Rp. 2.000.000,- and 32% were having income above Rp.2.000.000,- IV.2. Data processing
Figure 1. KMO and Bartlet’s test
KMO (Kaiser-Meyer-Olkin) and Bartlett’s test is 0.633 , above 0.5, and significant is 0.00, bellow 0,05 which means this research is eligible for using factor analysis .
Figure 2. Realibility statistics
Cronbach Alpha (a measure of internal consistency or how closely related a set of items are) was used to assess the inter reliability for each variables, has been Calculated as 0.727 which was enough above the minimum desirable level (0.6). It means that the items have a relatively high degree of internal consistency (note that a reliability coefficient of 0.70 is considered ‘acceptable’ in most social science research (Hair et al., 2006) in . There were 6 questions bellow 0.3, nevertheless since Cronbagh alpha if item deleted scores were good, those 6 questions could be avoided to be taken away because it also has impact in customer buying decision.
Figure 3. Total Variance Explained
In this table, From 5 variables (product, price, place, promotion, brand equity) could influence customer buying decision as much as 56,2% . Figure 4. Component matrix vs rotated component matrix
In rotated component matrix, out of 21 questions from independent variables, 6 questions were taken. In Reproduced correlation table explains the the percentage numbers correlated, and only questions with above 0.5 were used, other would be taken . Table 2. List of questionnaires taken
Samsung android smartphone is easy to use and hold (firm, fit on the right size) 5.
I buy Samsung android smartphone as telecommunication device (call, text message, email, read document, business activity) 6.
I buy Samsung android smartphone as entertainment device (multimedia, social network, games, fashion use) 8.
I can easily find place to repair (service) my Samsung android smartphone 18.
If I want to buy a smartphone, I will think to buy Samsung android smartphone on the first place 21.
I like Samsung’s company logo
Table 3. Mean Analysis
Total Weighted Average
4.38 (brand equity)
Criteria used to assess respondents’ answer in Likert scale: Strongly Agree(SA)5 Scores
Moderate(M) 3 Scores
Strongly Disagree(SD)1 Scores
Formula used according to Riduwan (2003) is used to calculate the result: Long Interval class= range
Number of Interval class
Range= High Scores – Low scores
Number of Interval Class = 5
Based on the formula above, the long interval class will be: Long interval class= 5 – 1 8
So, the interval of reference group assessment criteria is as bellow: 1.00 – 1.79= Very Poor
1.80 – 2.59= Poor
2.60 – 3.39= Moderate
3.40 – 4.19= Good
4.20 – 5.00= Very Good
Guidelines to determine the mean value category:
Very PoorPoor AverageGood Very Good
1.01.802.60 3.40 4.20 5.00 Mean analysis is used to know the dominant factor that influence the customer buying decision of Samsung android smartphone. In mean analysis the new variables were arranged from the highest score to the lowest one. Based on mean analysis, brand equity (X5) with mean score 4.38 and product (X1) with mean score 4.00 were the most dominant factor that influence customer buying decision of Samsung android smartphone, followed by promotion (X4) with mean score 3.68, place (X2) with mean score 3.43 and price (X3) with mean score 2.91.
Samsung has strong brand equity in customers’ mind. It could defeat such a strong brand like Motorola and Blackberry. As there was a surge in internationally visibility of Korean culture and entertainment, strengthen its brand awareness among Y generation by using underground marketing and sponsoring Olympic Games 2012. Customers like to buy a worldwide brand because it would increase their prestige. Brand equity aspect is stressing more on the intrinsic value of the product since young generation like to be different by using a certain brand or new products. They believe what product they use represent their personality.
For product, customer already satisfied enough with the quality of the product. Despite the short battery life and the unavailability of the official case, in term of operating system, multimedia, features and touch screen sensibility and application were already satisfy customers. Another aspect of the product which could be both the advantage and disadvantage of Samsung android mobile phone is the product types. Samsung released too many types of smartphone from Galaxy Young series, Galaxy W series, Galaxy Ace series, and Galaxy S series. It was good in the aspect of positioning product in which Samsung targeted its market from middle-lower society to middle upper society. But on the other hand, Samsung lost its prestige since its exclusiveness is decreasing because its segmentation is too huge. Customer like using something special that made them different from others.
For promotion, Samsung already tried a lot of effort in advertising and IMC. Samsung released a lot of article in mass media, put billboard in strategic place, put TV ads, and interactive marketing. With its aggressive marketing campaign stressing on its greater variety of product, Samsung successfully embrace all level of customers. Samsung also sponsored many international events like Olympic Games 2012 in London and did guerrilla marketing.
For place aspect especially retail and after sales service, Samsung has done well with it. Customers can easily find place to buy Samsung android smartphone. Samsung also built customer service center in almost every city in Indonesia. So whenever customers need to repair their phone or claim the
guarantee, they could find it easily.
For price, Samsung still can compete with its competitor like Mito, HTC, and Blackberry. Customers felt they got what they paid. But since the new types was keep being released from time to time the price of the old products were decreasing as well.
While in this research founded that brand equity, product, promotion, place, and price were the most dominant factor that influence customer buying decision (note that from mean analysis those five independent factors has mean above 2.5). Other research done by at a private school in Iran shown that by using multiple regression analysis, in one-way ANOVA approach they founded that marketing mix elements were weakly associated with the dependent variable. However, their in-depth analysis founded that marketing mix elements were strongly associated with the customer buying behaviors. Another research done by in Tehran founded that there was a positive and meaningful relationship between marketing mix efforts and brand equity towards customer buying decision.
Based on those comparisons, putting more advertisements might help to get a better market exposure in which customers would have more awareness in market characteristics and specialty. Customers evaluate the product’s condition based on its intrinsic value (prestige, exclusiveness), features, promotion released in both mass and social media, place where they can buy the product, and the pricing policy.
VI. CONCLUSION AND FUTURE RESEARCH
This research contributes to the understanding of the customer buying decision in the telecommunication industry. The findings of the study indicated that two independent variables (brand equity and product) are highly associated with the dependent variables. The other two independent variables (promotion and place) are fairly associated with the dependent variables, while price is weakly associated. The analysis in this research may help for the future research. It is highly suggested that for the next
research, the researcher could gather more samples and precede it using multiple regression analysis. VII. REFERENCE
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