INTENTION OF SUPER PREMIUM MILK FORMULA FROM MEAD …

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THE EFFECT OF PROMOTIONAL MIX AND PERCEIVED QUALITY ON MOTHER’S PURCHASE INTENTION OF SUPER PREMIUM MILK FORMULA FROM MEAD JOHNSON COMPANY IN JAKARTABy Nesia Lisa Pertiwi 015201000021 A Skripsi Presented to the Faculty of Business President University In partial fulfilment of the requirements for Bachelor Degree in Business Administration January, 2014

Transcript of INTENTION OF SUPER PREMIUM MILK FORMULA FROM MEAD …

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“THE EFFECT OF PROMOTIONAL MIX AND

PERCEIVED QUALITY ON MOTHER’S PURCHASE

INTENTION OF SUPER PREMIUM MILK

FORMULA FROM MEAD JOHNSON COMPANY IN

JAKARTA”

By

Nesia Lisa Pertiwi

015201000021

A Skripsi Presented to the

Faculty of Business President University

In partial fulfilment of the requirements for

Bachelor Degree in Business Administration

January, 2014

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PANEL OF EXAMINERS

APPROVAL SHEET

The Panel of Examiners declare that the skripsi entitled “The

Effect of Promotional Mix and Perceived Quality on

Mother’s Purchase Intention of Super Premium Milk

Formula from Mead Johnson Company in Jakarta” that

was submitted by Nesia Lisa Pertiwi majoring in Business

Administration from the Faculty of Business and International

Relations was assessed and approved to have passed the Oral

Examinations on February 5th

, 2014.

T.Manivasugen,MBA

Chair-Panel of Examiners

Drs. Agus B. Adidi,M.A,C.C.A

Examiner I

Suresh Kumar,ST,M.SI Examiner II

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SKRIPSI ADVISER

RECOMMENDATION

LETTER This skripsi entitled “The Effect of Promotional Mix and Perceived

Quality on Mother’s Purchase Intention of Super Premium Milk

Formula from Mead Johnson Company in Jakarta” prepared and

submitted by Nesia Lisa Pertiwi inpartial fulfillment of the requirements

for the degree of Bachelor of Business Administration in the Faculty of

Business Administration has been reviewed and found to have satisfied

the requirements for a thesis fit to be examined.

I therefore recommend this skripsi for Oral Defense

Cikarang,Indonesia, 28 January 2014 Acknowledged by, Recommended by,

A.B.M. WITONO, Ph.D Suresh Kumar,ST,M.SI

Head of Business Administration

Study Program Advisor

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DECLARATION OF ORIGINALITY

I declare that this skripsi, entitled “The Effect of Promotional Mix and

Perceived Quality on Mother’s Purchase Intention of Super Premium Milk

Formula from Mead Johnson Company in Jakarta” is the best of my

knowledge and belief, an original piece of work that has no help was sought from

an external professional agency and has not been submitted, either in whole or on

part, to another university to obtain a degree.

Cikarang, Indonesia, 28 January 2014

Nesia Lisa Pertiwi

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Abstract

One of the FMCG industry in pediatrics nutrition come in time on era

globalization which commonly known as an instant era, so in this study appoint a

fact of demand of milk in Indonesia keep increasing this leads by the healthy life

awareness trigger by the milk campaign. This study aim to discuss influence of

promotional mix as a modern marketing tools which is consist of advertising,

sales promotion and direct marketing together with perceived quality toward

purchase intention on super premium milk formula among Indonesian Women

group Whose represent the participant of the data collection and analyze the

behavioral and consideration in choose a product’s consume. Past research has

shown a significant influence between marketing mix which is content of

promotional mix as one of the variable and brand equity which is content of

perceived quality toward the purchase intention (Shih, 2010). This study construct

as a quantitative research and working through questionnaire that going to spread

among women in active age. Here the researcher adopting a multiple regression to

analyze data collected. The result found in this research is there is significant

influence among variable which is promotional mix, perceived quality and

customer purchase intention. This study also answering the objective of

researcher’s research proving the hypothesis and appropriately applicable in the

business field.

Keywords: Promotional mix, advertising, Sales Promotion, Perceived quality,

Purchase Intention, FMCG, Fast Moving Costumer Goods, Mead Johnson.

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ACKNOWLEDGEMENT

Above all I want to give a much tribute to the Almighty God who has

given strength to my self in order to finish the thesis, which is used as final

project.

I dedicated this work to:

1. My lovely Parents, sister and brother that always support and nag me while in

deep of their heart have a sincere prayer for my success. In other words, they have

roles as my personal motivators.

2. For all President University lecturers especially for my advisor Mr. Suresh

Kumar, who has been inspiring and guiding me to accomplish this final project

sincerely. For the best Lecturer in Business Administration Mr. ABM Witono and

Mam Farida K.G thank to all support

3. For all my fellow friends, which are the students in Business Administration

major as well. They have been encouraging and supporting me since the

beginning of my university life. I feel so grateful, because without their supports

this paper won’t be finished on time. Especially to the supper best people in

Business Administration Rosyanti, Christin Widjaja, Rieka Wulandari F, Chika

Luvina, James Louis, Feriko, Pophel, Febriandi and all batch 2010 that I can’t

mention one by one.

4. Super Cheerfull friend from another Major that always cheers me up Thank you

for kind of support from you all Shintia Dewi, Claudia Putri, Regina M. Santoso,

Marisa Gunawan, Carolline Ricca, Derry Fransisca. And Mr Perfectionist Billy

Homario. The all partner in crime in this thesis Dewi, Hendy and Surya. For all

Presuniver batch 2011, 2012 and 2013 especially BA student.

5. To Marketing team Mead Johnson Indonesia Mr. Planius, Mr. Adi, Mr. Toni,

Ms. Eya, Ms Ellen, Ms Susan and Ms. Juin. Partner intern Neysa and Astrid. The

all member of gossip girl mbak Ayu, mbak Erva, mbak Imma and Bu Janti thank

a lot for your support.

This report is an outcome of the research in a case study of PT Mead Johnson

Nutrition Indonesia.

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TABLE OF CONTENTS

PANEL OF EXAMINERS APPROVAL SHEET…………………………..i

RECOMMENDATION LETTER…………………………………………..ii

DECLARATION OF ORIGINALITY……………………...………………iii

ABSTRACT……………………………………..…………………………iv

ACKNOWLEDGEMENT………………………………………………….v

TABLE OF CONTENTS…………………………………………………..vi

LIST OF TABLES………………………………………...……………….ix

LIST OF FIGURES…………………………………………………………x

CHAPTER I – INTRODUCTION………………………………………..….1

1.1 Research Background.………………………..………………………1

1.2 Problem Identification…………………………….....……………….3

1.3 Problem Statement………….………………………………………..4

1.4 Research objective…………………………………………………...5

1.5 Research Limitation………………………………………….………5

1.6 Definition of Terms…………………………………………….…….5

1.7 Significance of The Study……………………………………………6

CHAPTER II – LITERATURE REVIEW……………………………...…....7

2.1 Theoretical Review…………………………………………………...7

2.1.1 Promotional mix toward Perceived quality…………………...10

2.1.2 Promotional mix toward Purchase Intention…………………..11

2.1.3Perceived Quality toward Purchase Intention…………………12

2.2 Previous Research……………………………………………………13

2.3 Theoritical Framework ……………………………………………….15

2.4 Hypothesis……………………………………………………………16

CHAPTER III – RESEARCH METHODOLOGY……………………….…17

3.1 Research Design……………………………………………………....17

3.2 Sampling Design……………………………………………………...17

3.3 Research Instruments…………………………………………………18

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3.4 Reliability and Validity ………………………………………………..19

3.4.1 Validity Test…………………………………………………….19

3.4.2 Reliability Test…………………………………………………20

3.4.3Data Collection……....................................................................20

3.5 Data Collection Procedure……………………………………………..21

3.6 Testing The Hypothesis………………………………………………..21

3.6.1 Normality Test ………………………………………………...22

3.6.2 Multicolinearity Test……………………………………………23

3.6.3 Heterohedasticity Test…………………………………………..24

3.6.4 F Test……………………………………………………………24

3.6.5 T Test……………………………………………………………25

3.6.6 Adjusted R2……………………………………………………..25

CHAPTER IV – ANALYSIS OFDATA AND INTERPRETATION

RESULT……………………………………………………26

4.1 Company Profile……………………………………………………….26

4.1.1 Product of Mead Johnson Company……………………………27

4.1.2 Company Vision, Mission, Values and Core

Behaviours…………………………………………………... …29

4.2 Respondent Profile……………………………………………………..30

4.3 Descriptive Analysis…………………………………………………...33

4.4 Data Analysis…………………………………………………………..45

4.4.1 Factor Analysis………………………………………………….45

4.4.2 Reliability Test ………………………………………………...52

4.4.3 Multiple Regressions……………………………………………57

4.4.3.1 Normality Test………………………………………...57

4.4.3.2 F Test ………………………………………………...58

4.4.3.3 T Test………………………………………………….59

4.4.3.4 R2………………………………………………...……60

4.5 Interpretation of Results……………………………………………….60

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CHAPTER V – CONCLUSION AND RECOMMENDATION…………..…63

5.1 Conclusion…………………………………………………………….63

5.2 Recommendation……………………………………………………...63

5.2.1 Recommendation to Company………………………………….63

5.2.2 Recommendation to Next Study………………………………..64

Reference List………………………………………………………………...65

APPENDIX

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LIST OF TABLES

Table 4.1 KMO & Significance Test SPSS’18 ..................................................... 43

Table 4.2 Cumulative Table SPSS’18 ................................................................... 45

Table 4.3 Total Variance Explained SPSS’18 ...................................................... 46

Table 4.4 Component Matrix SPSS’18 ................................................................. 47

Table 4.5 KMO and Bartlett’s Test After Rotation ............................................. 48

Table 4.6 Communalities After Rotation .............................................................. 48

Table 4.7 Total Variance Explained...................................................................... 49

Table 4.8 Rotated Component Matrix ................................................................... 49

Table 4.9 Reliability Test of Sales Promotion ...................................................... 50

Table 4.10 Reliability Test of Direct Marketing ................................................... 51

Table 4.11 Reliability Test of Perceived Quality .................................................. 52

Table 4.12 Reliability of Purchase Intention......................................................... 53

Table 4.13 Multicolinearrity Problem ................................................................... 56

Table 4.14Anova Table ......................................................................................... 57

Table 4.15 Coefficients ......................................................................................... 58

Table 4.16 Coefficients After Rotation ................................................................. 58

Table 4.17 Model Summary .................................................................................. 59

Table 4.18 The Summary of The Result of The Research .................................... 59

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LIST OF FIGURES

Figure 1.1 Market Share of Super Premium Product .............................................. 4

Figure 2.1 Marketing Mix Concept ......................................................................... 7

Figure 2.2 Theoretical Framework ........................................................................ 15

Figure 4.1 Respondent Data .................................................................................. 30

Figure 4.2 Respondent Monthly Expenses............................................................ 31

Figure 4.3 Mom Consideration Before Purchase .................................................. 31

Figure 4.4Considered Product Consume .............................................................. 32

Figure 4.5a Advertising Respondent Review ....................................................... 33

Figure 4.5b Advertising Respondent Review ....................................................... 34

Figure 4.5c Advertising Respondent Review ....................................................... 34

Figure 4.6a Sales Promotion Respondent Review ................................................ 35

Figure 4.6b Sales Promotion Respondent Review ................................................ 35

Figure 4.6c Sales Promotion Respondent Review ................................................ 36

Figure 4.6d Sales Promotion Respondent Review ................................................ 36

Figure 4.6e Sales Promotion Respondent Review ................................................ 37

Figure 4.7a Direct Marketing Respondent Review ............................................... 38

Figure 4.7b Direct Marketing Respondent Review............................................... 38

Figure 4.7c Direct Marketing Respondent Review ............................................... 39

Figure 4.7d Direct Marketing Respondent Review............................................... 39

Figure 4.8a Percieved Quality Respondent Review .............................................. 40

Figure 4.8b Percieved Quality Respondent Review ............................................. 40

Figure 4.8c Percieved Quality Respondent Review .............................................. 41

Figure 4.8d Percieved Quality Respondent Review ............................................. 41

Figure 4.9a Purchase Intention Respondent Review............................................. 42

Figure 4.9b Purchase Intention Respondent Review ............................................ 43

Figure 4.9c Purchase Intention Respondent Review............................................. 43

Figure 4.9d Purchase Intention Respondent Review ............................................ 44

Figure 4.9e Purchase Intention Respondent Review............................................. 44

Figure 4.9f Purchase Intention Respondent Review ............................................. 45

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Figure 4.10Histogram ........................................................................................... 55

Figure 4.11 P-P Plot .............................................................................................. 56

Figure 4.12Scatterplot ........................................................................................... 57

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Chapter 1 - Introduction

1.1 Research Background

Today Indonesia as the developing country already started to accept the

world global technology development one of it applied in industry. Cited from

the global business industry online magazine writer found that few industries in

Indonesia have benefitted from rising purchasing power as much as the fast

moving consumer goods (FMCG) sector. While the overall economy grew

between 6.2% and 6.5% per year since 2010, consumer spending increased by

double digits over the majority of the same period. Rising personal incomes are

lifting millions of Indonesians into the middle class every year, and FMCGs,

which include groceries, pharmaceuticals, toiletries and household care products,

are among the first items they spend more money on.

From the survey study the rate of growth of domestic consumption in

Indonesia expected to continue the increasing trend even up to 5-10 years, driven

by the behavior of a consumer society and likes new things that have become

trends. "The high growth rate of domestic consumption to make Indonesia's

economy remained stable in the midst of a world full of economic uncertainty,"

said Fabrice Carrasco, Managing Director of the Indonesia-Vietnam-Philippines

Kantar Worldpanel (KWP). So that is why now so many Companies abroad

started to entering Indonesian market

Based on historical market data consumer goods industry in Indonesia

grew increasingly positive. "With the increase of 9.6% in 2011 from the previous

year, the market value of the industry has reached Rp165, 95 trillion. In 2010, the

value of sales of consumer goods rose 11% over the previous year (Bahar,

Managing Director of Southeast Asia Spire Research & Consulting, 2013). Many

businesses are predicting that the trend of the consumer goods market in Indonesia

will increase in 2013, it caused an increase in the welfare of society that can

trigger a rise in the demand and consumption of products fast moving consumer

goods (FMCG).

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From overall FMCG Industry in Indonesia, writer interested to explore in

specific field which is an infant and children formula industry. Based on survey

study demand of milk in Indonesia keep increasing this is leads by the healthy life

awareness trigger by the milk campaign and the bigger number of Indonesian

citizen (Ekawati, 2008). Remembering the modern mindset and new culture

already shape in everyone heads. So, many pro conslead a forum to talk about the

breast milk culture. In the older point of view it a must so you know to be a real

moms for your children but in the other hand it can be annoy, pain, they have a

difficulty to produce the breast milk and for they who are really care about the

body shape it harmful for their beauty looks. So that is why, the presence of the

infant formula should be very demanding.

Mead Johnson as the multinational company that already exists in more

than 100 years of course has their own uniqueness to stay competitive in term of

getting steady market positioning in each country. In this study, writer is going to

analyze the effectiveness of promotional mix that has been done by PT. Mead

Johnson Indonesia. Promotional Mix is an action or ways to introduce their

product to targeted market. Promotion it self is part of marketing mix to make

people aware toward their product and consider the product as the trusted product

that they are going to consume.

It is not enough for a business to have good product sold at attractive

prices. To generate sales and profits, the benefits of product have to be

communicated to customers. In marketing, this is commonly known as

“promotion”. Although promotion is not done for these factors but the other such

as to build brand loyalty, to reminds and reassures costumers, those totals

marketing communications programme is called the “promotional mix”. Based on

the assumption and reason above the writer is interested to know and learn more

about the influence of the promotional mix toward brand equity and the purchase

intention. So this research arises with the title “The Effect of Promotional Mix

toward Brand Equity and the Purchase Intention” Case study of Mead Johnson

Company.

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So by raise up the case study of mead Johnson company, the researcher

going to make a conceptual framework of the promotional mix that apply by

Mead Johnson company and show the impact of that promotion application

toward brand equity and purchase intention of mead Johnson product. So by the

end of this research hopefully can be a good preview for the promotional

application in milk industry and give a positive contribution in the same field of

business.

1.2 Problem Identification

Mead Johnson Company already entering Indonesian market around 15

years ago, in term of keep the existence and getting a good positioning in the milk

formula market in Indonesia of course Mead Johnson make a tremendous

movement to increase the sales and market share one of the action that they take

such as offering promotion and held several event to introduce a product and also

the bridging some knowledge of product and nutrition workshop.

Based on market share of super Premium Milk in Indonesia in the last two

years, the market preposition of product mead Johnson it0self keep stabile no

significant increase or decrease. Even the company already gives so many

offering or promotion. So, in term of promotion that the company have done,

company spend a lot of marketing budget with no significant return on sales so do

they need to spend marketing budget for sales promotion or allocated it more to

the other aspect of promotion.

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Figure 1.1 Market Share of Super Premium Product

Source: Internal Data Mead Johnson Company 2013

1.3 Problem Statement

To know more what kind of factor that influence people to make a higher

purchase intention of premium milk in Indonesia this research aim some question

to analyze the best promotion mix that can be apply by the company to get better

sales return by knowing the behavior of Indonesian moms and consideration

before purchase.

1. Do promotional Mix (Advertising, Sales Promotion and Direct Marketing) and

perceived quality influence mother’s purchase intention of super premium milk

formula from Mead Johnson.

2. Which independent variable (advertising, sales promotion, direct marketing and

perceived quality) influence the most on the purchase intention

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1.4 Research Objective

1. To measure the relationship of promotional mix variable that adopted by Mead

Johnson (Advertising, Sales promotion, and Direct Marketing) and perceived

quality toward product purchase intention.

2. To determine which variable in promotional mix influence the most on the

purchase intention.

1.5 Research Limitation

The sample range of this questionnaire quite specific, so it only can be

applied for same industry, The secondary data that has been providedin this

research is only certain market share of super premium brand of milk in Indonesia

so for reference is only can be helpful if the next research is regarding the same

field of study, and the case of this study is only found in the Mead Johnson

Company so that is means that the study itself is not applicable for others

company. This research is measuring the super premium milk company for years

2011-2013. Hence, the result may be different if another research result uses

another time period.

1.6 Definition of Term

Promotional mix: Promotion is an action in marketing to ensure customers are

aware of the product.

Advertising: aprocess of communication, persuasive information about a product

and to educate customer regarding the type of the product.

Sales Promotion: any initiative or supportive action undertaken by an

organization to promote an increase in sales, usage or trial of a product or

services.

Direct Marketing:is an approach to advertising that seeks to elicit an action from

a consumer.

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Perceived Quality: is the customer’s opinion of a product or brand ability to

fulfill their expectation.

Purchase Intention: is a decision to buy after considering some aspect or it also

can be defined as individual’s intention to buy a product after a certain evaluation.

1.7 Significance of the Study

With this research, there are some significant studies that writer going to

achieved:

1. For the researcher, this research is being a study that fulfills the

requirement on obtained the bachelor degree in Business Administration

and learns to analyze the market business in Indonesia.

2. For the University students, this research can provide the student some

information with a complete and balanced education and to develop

better understanding about promotional mix, Brand Equity and purchase

intention when you are going to discuss the same variable or interested to

do deeper research.

3. For the Business application to the company, this research using the

primary data from questionnaire and Indonesian moms’ perception, so

hopefully this will give the several basic information that can be applied

for future plans of action in the business field to get greater and more

steady position in Indonesian market.

Furthermore, this study will serve as a theoretical model for future studies of the

same nature if ever the existing problem has penetrated in this case will exist in

the future. Future researchers will benefit from this study, and it will provide them

the facts needed to compare their study during their respective time and usability.

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Chapter 2 – Literature Review

2.1 Theoretical Review

Based on AMA (American Marketing Association) in marketing there is a

basic definition it is the process of communicating the value of a product or

service to customer, for the purpose of selling the product or services. This

communication aims at clarifying from both theoretical and managerial point of

view the concept of expertise in marketing can be call as marketing mix this is

they way they communicate to customer. Marketing mix divided into some

variable which are closely known as the 4’Ps:Place, Product, Price, and

Promotion.

Figure 2.1 Marketing Mix Concept

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Souces: Marketing Management: A South Asian Perspective

According to Armstrong and Kotler, 2009 marketing communication

programme can be called as “Promotional Mix” and it a specific blend of

principal which are advertising, personal selling, sales promotion, direct

marketing, and public relation. These tools are employed to communicate to

consumers thus helps to form their belief and attitude toward the offering.

Attitude is a person’s relative consistent evaluations, feeling, and tendencies

toward an object or idea and attitude will influence customer buying behaviour

(Armstrong &Kotler, 2009).

Promotional mix is specific combine of advertising, public relations,

personal selling, sales promotion and direct marketing (Armstrong and

Kotler,2009) these tools are apply in every company as the way to communicate

with the customer. The aim of an organization’s promotional strategy is to bring

existing to the product starting from the awareness until the purchase decision.

Promotional mix divided into several sector there is advertising which is

an activities that targeted several objectives such as to introduce the product to the

targeted market, to expand the market to new buyers, to announce the

modification, price change and introduce new packaging, and the last is to educate

customer regarding the type of the product is needs a careful

explanation.According to Brassington&Pettitt (2000) advertising is any paid form

of non-personal communication directed toward targeted audiences and

transmitted through various mass of media. Adding by Mortimer (2001) stated

that an important part of advertising is to make the service tangible in the mind of

the customer in order to reduce perceived risk and provide a clear idea of what the

service comprises.

There also has a sales promotion as supportive action to support a sales,

good application of the sales promotion produces an immediate consumer

response, attract attention and create product awareness. This can be stimulated by

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GWP, free sample, Twin-Pack bargain, temporary price reduction, coupon

discount from retailer. Well said the primary objective with sales promotion

within financial services are to attract new customer: to increase the level of

buying intention toward a product sell, to increase the market share in selected

market segment.

Not to forget direct marketing there will be a pro and contra in this part, is

that will be annoyed or pleased the customer if company uses the direct

marketing. According to Amstrong&Kotler (2009) “most of customer are annoy

or feel offended toward direct marketing such as TV commercial that are too long,

loud and insistent, unwanted junk email in the mailboxes and computer screens

flash out unwanted banner or pop up advertising.

However Al-alak&alnawas (2010) has different idea that said “consumer

have the intention to buy product if they are convinced that SMS advertising

message were useful and entertaining. Added by Lee (2002) the fast advances in

technology over the past 30 years have reshaped how consumer today interact

through technology, they prefer received a services from phone, mail, or computer

transactions.

All variable in promotional mix strategy manages and leads the

achievement of the marketing objective which is hitting the target and penetrating

the market. The choice of a proper mix of promotion elements is a difficult task to

the marketer, so it takes a long time to set up the strategy and maximize the mix.

So by understanding the market needs it becoming the first step to optimize the

promotional mix (Cole, 2009), then next is determine the promotional objective

which is leads the promotional activities should have a target to be meant which is

referred to the perceived quality and increasing the purchase intention.

Take a closer look at the brand, there is a perceived quality is the

customer’s opinion of a product or brand ability to fulfill their expectation

(business dictionary online). This perceived quality can be built though public

image, customer experience, and people influence or recommendation. So a good

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perceived quality can lead people becoming a loyal customer and also started to

aware of branding while choose the product that they are going to consume.

Brand represents the ability of producing synergy effect of complete

efforts of the marketing that inserts and stretch the existence of an image in the

minds of consumer, and add a helping hand to the firm’s success s with the help

of stronger cash flows and higher values in terms of the shareholders (Wong and

Merrilees, cited in Utami, 2013). In measuring the purchase intention it divide

into some variable such as willingness to purchase, considering purchase and

recommendation purchase.

Purchase Intention kind ofdecision in which studied how often a customer

purchases, it constructs like considering somethingpurchasing a brand and

anticipating purchase a brandaids to scope the intentions of purchasing (Porter

cited in shah, 2011). Adding by Binninger (2008) suggested that earlier in

1990scustomers loyalty is marked as a main concept against inassociation

withmany others that consists ofcommitment, satisfaction, identification, trust and

therelationship with or attitude leading to brand. Trust of thecustomer and

satisfaction with a retailer mediates theimpact of trust in brand and satisfaction on

customer.

2.1.1 Promotional mixtoward Perceived quality

A successful of the marketing mix contribute higher perceived quality

dacin and Smith (cited in Rajh,2005)it show a positive relation. In addition,

Perceived quality supporting the brand equity increases which isbrings

(1)Willingness of consumers to pay premiumprices

(2) Possibility of brand licensing

(3) Efficiency of marketingcommunication

(4) Willingness of stores to collaborate and provide support

(5)Elasticity of consumers toprice reductions

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(6) Inelasticity of consumers toprices increases and reduces the company

vulnerability to marketing activities ofthe competition and their vulnerability to

crises.

Those attribute is as a result of its visibility and pervasiveness in all the

other marketing communication elements (Okyere, Agypong&Nyarku, 2011).

Advertising as a major social event results in key changes in values, beliefs,

behaviour and buying patterns of the people as it influences the lifestyles of

people (Polly & Mittal cited in Stephen, 2012). Petrovici and Marinov (2007) said

that core reasons for the change in the lifestyle and buying patterns of a person are

the economic transformation and certain market opportunities.

Supported by Cook (Cited in Kumar,2011) explaining that although

advertising must be perceived as original and unique in order to gain new clients,

it rarely results in a substantial positive or negative gain for brand equity due to

long-term product and company lifecycles. Which means the promotional mix

that run by a company give a rule to lead a manufacturer brand customers directly

to determine satisfaction and perceptions regarding a brand and its perceived

quality, Keller (cited in Utami, 2013) defines customer-based perceived quality as

the differential effect of brand knowledge on consumer response to the marketing

of a brand.

2.1.2 Promotional mix toward Purchase Intention

The trend of consumer purchase intention is influenced by the attitudes

held by consumer concerned. Strong attitude may be held with strong conviction

to determine the product that will be bought by consumers Engel (cited in Shih,

2010), while others may exist with minimum level of trust. Purchase intention is

the implied promise to one’s self to buy the product again whenever one makes

next trip to the market (Fandos&Flavian, 2006; Halim&Hameed, 2005). It has a

substantial importance because the companies want to increase the sale of specific

product for the purpose to maximize their profit.

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Purchase intention descript the impression of customer retention toward

action that already take such as the promotion that have done by the company

through media, website, or in store promotion strategy. Product knowledge is that

descriptive features which company wants to acknowledge to the general public to

cater their purchase intention. Simply says if a consumer goes to the market they

will prefer to get those products about which they has already know, there is very

rare chance for them to look for other products. So companies trying to provide

necessary product knowledge by using various modes of communications through

promotional mix to the buyers to get their attentions regarding purchase. Trust is

another major factor which a company can attain by providing knowledge to

patrons about their operations, procedures and rules use to make the product. So it

is cleared that if people have more product knowledge then they would be more

persuaded towards purchase intention.

2.1.3 Perceived Quality toward Purchase Intention

Purchase Intention defines as the tendency of consumer to buy the brand

or take the brand or take action relating to the purchase of which measure by how

likely consumers make purchases(Assael,2011). Attitude is very influential on

consumer perception of the quality of the product, the perception of high quality

intend to encourage consumer to buy the product in question (Kumar, 2009).

Perception of high quality can cause consumers to recognize the difference and

advantages of certain brands.Sebastianelli and Tamimi (2002) explained product

quality as something which resembles with the innate excellence, which mean, it

comes from the production level and it should be recognizable. They emphasized

that quality should consist of measurable features instead of preferences

Cited in Ling-Ling (2011) a statement from Porter also elaborated

customers’ intention topurchase focused brand is not merely by the same

brandattitude, but also by attitudes leading to other brandsin choice of set

considered. Schoen bachler (2004)explained a type of loyal customer, whose

purchase. Currently, there are a large number of different definitions of brand

equity, whichmay lead to conceptual misunderstandings when researching this

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phenomenon. An attempt to classify the different approaches to the definition of

brand equitycould be useful in clarifying different approaches to andrelationships

involved in the complex concept of brand equity that lead people to check closer

about perceived quality of a product bought.

Feldwick (Cited in Utami,2013) hasidentified three different approaches to brand

equity:

(1) brand value (the totalvalue of the brand as a company’s intangible asset –

financial approach)

(2) brandstrength (the strength of consumer commitment to a particular brand –

behavioristic approach)

(3) brand description (associations and beliefsconsumers have about particular

brands – cognitive approach).

Feldwick argues that brand equity is a vague concept especially due to its

lack of measurability and application in the business environment. He concludes

that brand equity is too imprecise to be used as the holistic measure of everything

such a perceived quality for a company should be doing to improve its future

performance as the important in the design and development of a companyand its

product or service offerings. So the context product and services in perceived

quality dimensions applicable to attempt a good relation in purchase Intention.

2.2 Previous Research

To support this research, writer already read some research that discuss resemble

topic:

1. An International Journal titled Comparative Analysis of Marketing

Strategies for Manufacturers’ and Retailers’ Brands by Tsui-Yii Shih

2010. This research discuss the all aspect of marketing strategy which is

going to be dependent variable, to compare the manufacturers’ and

retailers’ brand the researcher rose another dependent variable namely

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brand equity and purchase intention to be the independent variable. This

research findings are administered total 93% valid questionnaire, structural

equation models are evaluated by chi-square significance test, all factor

loadings of variable exceed 0,6, while the cronbach’s alpha values for the

item to total correlation exceed 0,7. In this study results shows the

marketing strategies and brand equity all have significant positive effect

on purchase intention.

2. A paper from University Malaysia Sarawak Promotion Mix: Level of

Awareness and Purchase Likelihood by Rabaah Tudin and Anne Wong

Ling-Ling 2012. This Research focusing on the explanation of distribution

and contribution of each mix in promotion. This research was design with

a non probability sampling to 400 partisipant with the acceptable

hypothesis which means there is a significant positive relationship

between consumers’ level of awareness on product and sales promotion

and public relation.

3 An Evaluation of Promotional Element Influencing Sales of an

Organization by Arvinlucy Akinyi Onditi from Maseno University of

Kanya 2012. In this research the writer targeted woman group as the

source of primary data collected and also using a simple random sampling

technique of women group in known population. This reseach have a

scope of study that mainly focused on the use of promotional factor that

going to be use in writer research. As the result promotion is give much

contribution on sales of an organization which is driven by the bigger

purchase intention among women group in that area of study.

4. Jurnal from Ayu. Karbala and Harimukti which learns and contributes in

discussing the factor thataffect consumer to buy a product by looking

several factors that caninfluence them such as product, price, place, and

promotion. In Analyzing the Factors That AffectingConsumer’s

Purchase Intention in Toimoi Store,Indonesiausing a factor analysis

though data collection of 122 questionnaire while the R2shows

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thatproduct, price, place, and promotion collectively has 13.1%effect in

consumer’s purchase intention.

5. The last journal is taken from a lecturer PhD Raj Kumar Gautam and

Professor PhD Raghbir Singh 2011 with the title Marketing Mix Strategy

of Small Manufacturers of India. This research use the likert scale to

express the level of agreement/disagreement. The significant level is

spesified with Kruskal-wallis test that assumed p-value=0.05 and if the

result is less than 0.05 are considered as significant. This research finding

is the small manufacturer in this globalization era depends a lot on the

marketing mix to remain competitive and survive in the market.

2.3 Theoretical Framework

Based on the writer’s research, PT. Mead Johnson Indonesia creates a conceptual

framework to verify the performance of marketing strategy (see figure 2.1). This

company is focusing in the effectiveness of promotional mix programme upon

understanding their customer needs which enable the company to serve customer

better than competitor and trust Mead Johnson product. So, these researches rise

up the conceptual framework that implicated the promotional mix, brand equity

and purchase intention.

Figure 2.2 Conceptual Framework

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Sources : Shih,2010

2.4 Hypothesis

This study was carried some hypotheses:

H.1 There is a significant impact between promotional mix and perceived quality

on Purchase Intention of milk product.

H.2 There is the most significant impact in promotional mix element on purchase

intention of milk product.

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Chapter 3 – Methodology

3.1 Research Design

This Research adopted the case study from Mead Johnson Company. It

was because the researcher has learned and takes role in the marketing department

in this company,by knowing some background and result compared the researcher

have much interest to know is promotional mix that already run by this company

give a big impact on brand equity and purchase intention toward product of Mead

Johnson Company. In this Research, Researcher going to collect primary data by

spread an online questionnaire to targeted people so, the data collected will be

valid and lack of mistake. This research fully design as a Quantitative dimensions

to set the most suitable method to determine whether generalization of a theory or

a hypothesis is accurate (Creswell, 2009)

3.2 Sampling Design

The target of the data collection is active women in Indonesia that

consume a milk product in their pregnancy and maternity period. That include all

women in good enough economy and education background to make sure they

consume milk to support her and hers’ babies growth. According toMalhotra

2010, in the Marketing research the unknown population targeted required a

minimum sample size of 200 respondents that should be collected randomly. In

the other hand, Comrey and Lee (cited in MacCullum,1999), they offered a rough

rating scale for adequate sample sizes in factor analysis 100 = poor, 200 = fair,

300 = good, 500 = very good and 1000 or more = excellent. So the researcher

choose to use 250 number of questionaire to prove the hypotheses in this research.

Using a random sampling may grossly misrepresent the target population but in

the questionnaire that rises in this research has set the characteristic of the target

to minimize an error.

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3.3 Research Instruments

The equipment for data collection was a questionnaire and descriptive statistics

and hierarchical stepwise regression analysis to prove the hypothesis.The

questionnaire structured using aLikert scale (1-5) which measuring the strongly

disagree, disagree, moderate, agree and strongly agree. It intended to obtain the

primary data from the respondents as a subject of research on the variable

measured. These questionnaires measure the effect of promotional mix toward

brand equity and purchase intention of milk formula product in Indonesia.

Variable Indicator Author

Advertising

I know much about the milk product product

from TVC, sosial media, billboard and magazine

Tsui-yii Shih

I know there is the promotion from Milk product

because the products is available in the big retail

shop

After seeing the biggest advertising offered I'll

try find out the product

Sales

Promotion

I will buy more product because of the

promotion

Park Jin woo

when I see the promotion label I will spend over

my budgeting limit

I feel that I have more benefit if I can get

discount

I pay more attention to the biggest number of

sale not for the current brand I consume.

I buy a product with a special offering in retail

store after getting the information

Direct

Marketing

I always found the interesting offered from mail,

sms or website

Internal source

Mead Johnson

the contain of sms that I've got is always clear

*see example*

I prefer get an sms or mail about the current

promotion rather than asking about my babies

development

I appriciate if the company send me an sms or

mail that contain reminder for baby needs

I always getting a fast response and enjoy with

the text sms that I send so it lead me to buy a

product

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Variable

Indicator

Author

Percieved Quality

I consider myself to be loyal to manufacturer

brand because it have a famous and strong

personality

Tsui-yii Shih

Manufacturer brand ofer very realible product

the likelihood that manufacturer brand will be

satisfactory is very high

bigger promotion means bigger budgeting,

bigger company and the greatest quality they

offered

Purchase Intention

I am willing to pay money for the product that

recommended by trusted people for me

Tsui-yii Shih I Consider to buy a product if there will be a

reward point after certain amount.

The product that I am going to use continiously

should be easy to get

Free sample is the kick off before I choose to

purchase Internal source

Mead Johnson The Ingredients of the product can complete the

nutrition needs

I prevere to choose a product with a good

packaging Kumar Rajh

3.4 Reliability and Validity

3.4.1 Validity Test

Based on Malhotra 2010 there are several types of validity:

1. Content Validity (consist of a subjective but systematic evaluation of the

representativeness of the content of a scale for the measuring task on hand.

2. Criterion Validity (the type of validity that define whether the measurement

scale perform as expected in relation to other variables selected as meaningful

criteria.

3. Construct Validity (shown the theoretical question by researcher and estimating

the deduction made by theory underlying)

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Validity test is needed to determine whether the question in the

questionnaire representative enough. Test validity is done by using factor analysis

on each variable. Factor analysis is a multivariate statistical procedure that used to

examine the entire variable for interdependence (Malhotra, 2010). There are

several steps in tested the factor analysis:

1. KMO &Barlett Test

KMO ( Kaiser- Meyer- Olkin) measure adequacy test and Barlett test of

sphericity, to determine the appropriateness of the factor analysisif the value index

around 0.5 – 1.0, then factor analysis is appropriate).

2. Communalities

This is a table that show amount of variance a variable for communalities that

should be above 0.5 and all variable share with the other variable being

considered (Malhotra, 2010).

3. Total Variance

There is cumulative column which representing a percentage of variable explained

through this study with the considerate number greater than 60

4. Rotated component matrix

Used to deliver a table that consist of factor loading of each variable on the

component and delivered a relationshipof variable and component

3.4.2 Reliability Test

The reliability is a value that indicate a measure of consistency every

question in the same variable. The reliability of used measurement scales was

tested using Cronbach’s alphacoefficient. Cronbach’s alpha coefficients lead us to

the conclusion that the appliedmeasurement scales exhibit satisfactory levels of

reliability, this study uses a composite reliability with a cut-off value at least 0.7,

ranging from acceptableto excellent.Also, theimpact of specific items on

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Cronbach’s alpha coefficient of the respectivemeasurement scale was analysed in

order to eliminate from further analysis thoseitems that result in the reduction of

the reliability of respective measurementscales. Based on such analyses, the

following items were eliminated from furtheranalysis. The reliability testing is an

index to illustrate how trusted and reliable the questionnaires are.

The Cronbach’s Alpha formula:

( )

Where:

= instrument reliability’s coefficient

r = mean correlation between variables

N= number of questions

3.5 Data Collection Procedure

This study is required both primary and secondary. Primary data was

acquired through questionnaire administered to the women group in active age,

while secondary data was obtained from the Mead Johnson Company that provide

data of the market share of the super premium milk formula. By getting the

primary data researcher can go deeper to the purchase considering for the milk

formula and by the secondary data which is the market share of super premium

milk in Indonesia researcher can combine and compare the brand perception

toward every national brand.

3.6 Testing the Hypothesis

This research going to implement multiple regressions to define the

research objective, here writer going to discuss the relationship of two

independent variables namely promotional mix and the perceived quality toward

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the dependent variable namely purchase Intention. This research that use a

multiple regression should fulfill the term of normally distributed (Ghozali,2009)

that will be shown in a histogram with bell shape curve. Those data collected will

be processed through SPSS 18 to find the most influential factors.Multiple

correlation R measure how dependent variable is related to all the independent

variable at once.

Where:

Y: dependent variable (Purchase Intention)

B1: coefficient of variable 1 (advertising)

B2: coefficient of variable 2 (sales Promotion)

B3: coefficient of variable 3 (Direct Marketing)

B4: coefficient of variable 4 (Perceived Quality)

3.6.1 Normality Test

Normality test can be detected through scatter plot performance on the

diagonal line in the graph, by analyze the histogram Ghozali (2006). In regression

normality is a basic assumption of normal distribution there is can be analyze

through histogram or P-P plot with the dot spread around the diagonal line.

Normality can be accepted if the ratio are -2 to +2 (Pamela,2006). The used of

normality is for checking whether the data is normally distributed or not.

1. Histogram

The normally distributed data in histogram will show a bell-shaped pattern

and often the histogram will include a line that shows a pattern of the

histogram and the normality is marked with the data distributed inside the

line.

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2. P-P Plot

The expected normal value is the position a case with rank hold in normal

distribution. Generally, the plot will show the actual values lining up along

the diagonal that goes from lower left to upper right it called as positive

correlation.

3. Scatter Plot

The next is check normality through scatter plot to show how much one

variable is affected by another. The relationship between two variable is

called correlation, the residual of the plot is normally distributed if the

major of the plot is spread above and below zero point at Y axle.

3.6.2 Multicolinearity Test

Multicolinearity can be check through VIF (Variance Inflation Factor) that

provide the index of how much variance of estimated regression

coefficient increase because of collinearity.

Multicolinearity is a problem those arises when intercorrelation among

variable are very high. According to Malhotra 2010 there is 4 type of

problem arise as a result of multicolinearity problem:

1. The partial regression coefficients may not be estimated precisely. The

standard errors are likely to be high.

2. The magnitudes as well as the sign of the partial regression coefficient

may change from sample to sample

3. It becomes difficult to assess the relative importance of the independent

variable in explaining the variation in dependent variable

4. Predictor variable may be incorrectly included or removed in step wise

regression

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3.6.3 Heterocedasticity Test

Heterocedasticity is an errors that affecting invalidate statistical

tests of significance that assume that themodelling errors are uncorrelated

and normally distributed and that their variances do not vary with the

effects being modelled because it did not have a constant variance of one

observation to other observations (Kuncoro,2003). If heterocedasticity

found the research the result maybe not accurate and misleading the

study.Heteroscedastic data will still provide an unbiased estimate for the

relationship between the predictor variable and the outcome, but standard

errors and therefore inferences obtained from data analysis are suspect.

Biased standard errors lead to biased inference, so results of hypothesis

tests are possibly wrong

3.6.4 F Test

The significant level of F value was used to determine the

reliability of the model using F test. F test usually using ANOVA table

(analysis of variance) and conducted the requirement of significant level

below 0.05. F Test is used to test the null hypothesis that the coefficient of

multiple determinations in the population. The significant of the partial

regression coefficient may be tested using an incremental F statistic with

the formula below:

[( ) ( )⁄ ]

Where:

F= statistic test for F distribution

R2= coefficient of determination

k = number of independent variable in the model

n = number of sample

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F value will be shown through table with the significant level

below 0.05 it show the simultaneously relation between independent

variable and dependent variable in this research

3.6.5 T Test

T test is a univariate hypothesis test using the t distribution which

is used when the standard deviation is unknown and the sample size is

small (Malhotra, 2010). Value was used to determine the predictor

power or coefficient value. T test is use to determine the t value that use to

determine significant of value as explained by (Field, 2005).

3.6.6 Ajusted R2

R2 was used to interpret the multiple correlation coefficient level.

According to Malhotra 2010 R2 is adjusted for the number of independent

variable and the sample size to account for diminishing returns. After the

first few variable, the additional independent variable do not make much

contribution.

R2 will be larger when the correlations between the independent

variables are low. The coefficient of multiple determinations, R2, cannot

be less than the highest bivariate r2. For this reason, R

2 adjusted for the

number of independent variable and the sample size by using the

following formula:

( )

Where:

R2 = Coefficient of determination

k = number of independent variable in this model

n = number of sample

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Chapter 4

Analysis of Data and Interpretation Result

4.1 Company Profile

Few industries in Indonesia have benefitted from rising purchasing power as

much as the fast moving consumer goods (FMCG) sector. While the overall

economy grew between 6.2% and 6.5% per year since 2010, consumer spending

increased by double digits over the majority of the same period. Rising personal

incomes are lifting millions of Indonesians into the middle class every year, and

FMCGs, which include groceries, pharmaceuticals, toiletries and household care

products, are among the first items they spend more money on. Growing sales in

Southeast Asia’s largest economy have helped global companies expand their

businesses.

Urbanization also tends to promote new lifestyles, creating demand for products

consumers may previously have considered unnecessary. This is a trend that is

buoying sales of personal care products from women’s nail polish to men’s

skincare across Indonesia’s diverse consumer market. The beauty and cosmetics

market in Indonesia is growing fast with a 14% growth in cosmetics sales in 2012

totaling $1.01 billion USD (Euromonitor). While women’s beauty products make

up the lion’s share of growing sales, demand for men’s products is undergoing

significant growth mirroring a phenomenon being witnessed throughout Asia.

The fact that urban families tend to have fewer children leaves more disposable

income to be spent on non-essentials such as beauty products or higher quality

foodstuffs. At the same time, parents with fewer children normally spend more

per child, which promises bright prospects for premium-brand baby and childcare

products in a country with Asia’s second highest birth rate. One FMCG category

set to benefit from changing Indonesian lifestyles is infant formula milk which has

seen sales increase by 9% per annum (Reuters). As more women in city

environments are formally employed, they are finding it harder to maintain a

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breast-feeding regime and are therefore more ready to opt for commercial

alternatives. Multinational as well as local FMCG producers are investing heavily

in new dairy plants to meet swelling demand such as Mead Johnson

Mead Johnson was built on a foundation of science-based nutrition. Mead

Johnson Nutrition was the one of the first companies in United Stated who

focuses on scientific research for infants and children Nutrition. Mead Johnson

Nutrition was establish on 1900 in Jersey City, New Jersey by Edward Mead

Johnson, Sr. for more than 100 years, Mead Johnson has introduced a wide range

of innovative infant feeding product, pharmaceutical, and enteral and parenteral

nutrition products. In 1910, Mead Johnson introduced Dextrilactic-Powder, the

first baby feeding product. This new product is a combination of digestive aids

and dehydrated milk. In 1915, Mead Johnson settled in Evansville, Indiana, where

still it maintains its largest presence, including a Pediatric Nutrition Institute

research facility and a manufacturing plant.

Mead Johnson International was formed as a separate division to provide a

framework for conducting business overseas. Today Mead Johnson has over 70

products in more than 50 markets worldwide. Mead Johnson’s first Mexican

manufacturing facility was built in Mexico City. That same year, the company

was recognized by the medical Pharmaceutical Foundation of the Republic of

Mexico and made greatest contribution to the nation’s public health.

4.1.1 Product of Mead Johnson Company

Below is a product offered from PT Mead Johnson Indonesia:

Enfa A+

1. Enfa Mama A+

Is a milk formula Enriches with Colin, Folat acid, Antioxidant

Vitamin C to support the nutrition needs for pregnant and

breastfeeding women.

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2. Formula For Infant (0-11 months)

For infant formula because we are supporting the ASI Exclusive so

we did not put a aggressive promotion like others product. So in

the website moms required to register before they ask for Infant

formula and direct them to the Health care professional.

3. Enfa Grow A+

It’s help supporting the brain development by helping stimulate of

Concentration, memory and Problem solving for children in their

first three years which is known as the golden period of brain

development.

4 Enfa Kid A+

Follow on milk after Enfa Grow and its goods for completing the

nutrition and help the children to have great support for their

growth such as cognitive, reasoning, logic and also Antibody.

Sustagen

1 Sustagen Junior 1+

This stage is address to the 1 up to 3 Years old children. Why they

need milk formula? In this active age many of them becoming

fussy eater so with delicious taste of Honey and Vanilla will

reduce Moms worries.

2. Sustagen Kid 3 +

This stage is address to the 3 up to 6 Years old children. Moms will

started to found their babies as a picky eater. So this milk formula

will help moms to complete their baby nutrition.

3. Sustagen School 6+

This stage is address to the 6 + children where they already started

their activities at school and becoming active is a must so they

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need more energy to support their activities. Sustagen School 6 +

help them to get enough nutrition.

4. 1. 2Company Vision, Mission, Values and Core Behaviours

Vision of PT Mead Johnson Indonesia

To be the world’s leading Nutrition Company for babies and children.

Mission of PT Mead Johnson Indonesia

To nourish the world’s children for the best start in life.

Values of PT Mead Johnson Indonesia

Passionate pursuit of continuous improvement in all we do

Uncompromising commitment and product quality

Unwavering integrity in every relationship we have and action we take

An environment of openness, respect, and high performance

Core Behaviors of PT Mead Johnson Indonesia

Drive performance with focus

Communicate with Clarity

Innovate and Improve

Develop and Engage

(Internal Source PT Mead Johnson Nutrition Indonesia)

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4.2 Respondent Profile

Based on the research instrument the data result analysis should go through the

entire test started from the reliability test until the Hypothesis test. The entire step

below is the following step and explanation of the data interpretation:

In this research is specified as female in active age, with a married in marital

status total of 250 respondents.

1. Respondent Data

Figure 4.1 Respondent Data

The background of those 250 respondents who have been deal with this

questionnaire presented in table 4.1 74% (185 respondents) of them already have

a kid, 24 % (60 respondents) of them pregnant, but 2% (5 respondents) of them

married already but haven’t have a kid or pregnant yet.

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2.RespodentMonthly Expenses

Figure 4.2 Expenses per month

From economic background most of them already in category of middle upper

economic level. 49% (123 respondents) of them have an expense more than 5

million a month

3. Mom Consideration before Purchase

Figure 4.3 Scale considerations before purchase

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Most of mom consider about perceived quality, nutrition and

recommendation. Because those three factors already contribute 62% share of

voice in this questionnaire 155 Respondents out of 250 respondents. This kind of

consideration stimulate by their background of economic. And from respondent

data questionnaire almost 50 % of them can be categories in a great range

economic background so most of them already settle to give the best product

which they can buy not really care about promotion and GWP.

4. Considered product consume

Figure 4.4 branding scale

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Regarding product consume in their breastfeeding period most of them consume

Prenagen, Anmum and Enfa Mama. For an infant formula Enfagrow A+ from

Mead Johnson trusted as the first switch formula for their children around 38%

(95 Respondents) choose Mead Johnson product. From this primary data it show

that they already close enough with this brand and stated realize that the perceived

quality of the product is worth to get. It strengthen by the behaviour before

purchase of Indonesian mom that considering a quality, nutrition, and

recommendation over the promotion, so it can be said that the level of education,

economic, and lifestyle affecting their mind set.

4.3 Descriptive Analysis

Figure 4.5a AdvertisingRespondent Reviews

Q1: I know much about the milk product product from TVC, sosial media,

billboard and magazine

Degree of the agreement in this likert scale is 80% of total 250

Respondents.

1 3%

2 3%

3 15%

4 43%

5 37%

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Figure 4.5b Advertising Respondent Reviews

Q2: I know there is the promotion from Milk product because the products

is available in the big retail shop

Degree of the agreement in this likert scale is 77% of total 250

Respondents.

Figure 4.5c Advertising Respondent Reviews

Q3: After seeing the biggest advertising offered I'll try find out the product

Degree of the agreement in this likert scale is 69% of total 250

Respondents.

1 2%

2 3%

3 19%

4 44%

5 33%

1 3%

2 12%

3 17%

4 39%

5 30%

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Based on respondent data above researcher interpret the data as the

positive response from the respondent about the advertising most of them stated

that they are found an interest in advertising and though advertising people know

about the product and consider buying a product. By second question in

questionnaire researcher found an interested fact that retailer also take a big role in

advertise the product, the product that available in a big retailer like Carrefour,

Hypermart, and Giant is categories as easy to get product and it leads a higher

purchase intention toward a product.

Figure 4.6a Sales Promotion Respondent review

Q1: I will buy more product because of the promotion

Degree of the agreement in this likert scale is 62% of total 250

Respondents.

Figure 4.6b Sales Promotion Respondent review

1 5%

2 11%

3 23%

4 40%

5 22%

1 4%

2 15%

3 27%

4 35%

5 20%

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Q2: When I see the promotion label I will spend over my budgeting limit

Degree of the agreement in this likert scale is 55% of total 250

Respondents.

Figure 4.6c Sales Promotion Respondent review

Q3: I feel that I have more benefit if I can get discount

Degree of the agreement in this likert scale is 68% of total 250

Respondents.

Figure 4.6d Sales Promotion Respondent review

Q4: I pay more attention to the biggest number of sale not for the current

brand I consume.

Degree of the agreement in this likert scale is 45% of total 250

Respondents.

1 1%

2 3%

3 24%

4 38%

5 35%

1 16%

2 20%

3 20%

4 30%

5 15%

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Figure 4.6e Sales Promotion Respondent review

Q5:I buy a product with a special offering in retail store after getting the

information

Degree of the agreement in this likert scale is 66% of total 250

Respondents.

Based on figure 4.6diagram show that sales promotion hitting the target

with the discount, by having a great deal of discount customer feel they get more

advantages it stimulate them to spend more money, so in order to giving a sales

promotion there should be a good planning by marketer in term of giving a clear

promotion so targeted customer aware there is a promotion along the several

period of time. But we can see in the question number 4 the switching product

behaviour of the customer is categories as high so it could be quite hard to

maintain a loyal customer and there is also a change to make them stated to

choose Mead Johnson product.

1 5%

2 11%

3 29%

4 43%

5 13%

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Figure 4.7a Direct Marketing Respondent Review

Q1:I always found the interesting offered from mail, sms or

website

Degree of the agreement in this likert scale is 49% of total 250

Respondents.

Figure 4.7b Direct Marketing Respondent Review

Q2:the contain of sms that I've got is always clear

Degree of the agreement in this likert scale is 41% of total 250

Respondents.

1 10%

2 17%

3 25%

4 27%

5 22%

1 14%

2 19%

3 26%

4 30%

5 11%

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Figure 4.7c Direct Marketing Respondent Review

Q3:I prefer get an sms or mail about the current promotion rather

than asking about my babies development

Degree of the agreement in this likert scale is 59% of total 250

Respondents.

Figure 4.7d Direct Marketing Respondent Review

Q4: I always getting a fast response and enjoy with the text sms

that I send so it lead me to buy a product

Degree of the agreement in this likert scale is 53% of total 250

Respondents.

1 14%

2 19%

3 26%

4 30%

5 11%

1 2%

2 10%

3 30%

4 38%

5 20%

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In direct marketing (figure 4.7)likert scale data show most of the

respondent in moderate up to agree in term of email offered by a company

is interesting for them but in term of information they get, is clear enough

to be understood and the appreciate if the company send a text or mail

regarding reminder for immunization and information about babies

development it can lead them to be loyal.

Figure 4.8aPercieved Quality Respondent Review

Q1:I consider myself to be loyal to manufacturer brand because it have a

famous and strong personality

Degree of the agreement in this likert scale is 79% of total 250

Respondents.

Figure 4.8a Percieved Quality Respondent Review

Q2: Manufacturer brand offer very realible product

1 0%

2 3%

3 19%

4 39%

5 40%

1 2%

2 1%

3 20%

4 49%

5 29%

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Degree of the agreement in this likert scale is 78% of total 250

Respondents.

Figure 4.8c Percieved Quality Respondent Review

Q3: the likelihood that manufacturer brand will be satisfactory is very high

Degree of the agreement in this likert scale is 80% of total 250

Respondents.

Figure 4.8dPercieved Quality Respondent Review

Q4: bigger promotion means bigger budgeting, bigger company and the

greatest quality they offered

Degree of the agreement in this likert scale is 91% of total 250

Respondents.

1 0%

2 2%

3 18%

4 38%

5 42%

1 0%

2 0%

3 10%

4 43%

5 48%

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Researcher found that percieved quality is the most infuence variable

in buying decision, because people believed that manufacturer brand offer

a very realible product. It hard to make them started a switching brand

behaviour if they already set which product they going to consume. In

term of quality here Mead Johnson product in a very good

recommendation in term of quality based on survey study in this

questionaire it found Enfa is the most wanted to buy infant formula and

enfa mama is in the second range.

Figure 4.9a Purchase Intention Respondent Review

Q1:I am willing to pay money for the product that recommended by

trusted people for me

Degree of the agreement in this likert scale is 56% of total 250

Respondents.

1 8%

2 9%

3 28%

4 27%

5 29%

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Figure 4.9b Purchase Intention Respondent Review

Q2: I Consider to buy a product if there will be a reward point after certain

amount.

Degree of the agreement in this likert scale is 58% of total 250

Respondents

Figure 4.9c Purchase Intention Respondent Review

Q3: Free sample is the kick off before I choose to purchase

Degree of the agreement in this likert scale is 52% of total 250

Respondents.

1 5%

2 10%

3 26%

4 46%

5 12%

1 3%

2 21%

3 23%

4 34%

5 18%

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Figure 4.9d Purchase Intention Respondent Review

Q4: The product that I am going to use continiously should be easy to get

Degree of the agreement in this likert scale is 84% of total 250

Respondents.

Figure 4.9e Intention Respondent Review

Q5: The Ingredients of the product can complete the nutrition needs

Degree of the agreement in this likert scale is 91% of total 250

Respondents.

1 0%

2 2%

3 14%

4 47%

5 37%

1 0%

2 1%

3 8%

4 37%

5 54%

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Figure 4.9f Purchase Intention Respondent Review

Q6: I prevere to choose a product with a good packaging

Degree of the agreement in this likert scale is 75% of total 250

Respondents.

Purchase Intention of product influence by recommended product by

trusted people this study found more than 50% of moms prefer to choose

recommended product, free sample also becoming a kick of before they choose a

product because it hard to find the most suitable product for their children because

their consideration is about the complete nutrition needs. The good packaging off

a product is an adding value to give a premium impression in the first sight.

4.4 Data Analysis

4.4.1 Factor Analysis

1. KMO & Significance Test

Table 4.1 KMO & Significance Test SPSS’18

1 4%

2 4%

3 19%

4 36%

5 37%

KMO and Bartlett's Test

Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .709

Bartlett's Test of Sphericity Approx. Chi-Square 1495.626

Df 120

Sig. .000

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While this research is using the Factor analysis basic the first

requirement that should be fulfil is the Bartlett’s test that measure the

sampling adequacy. For the KMO number, it should be greater than 0.5

and the significant level lower than 0.05, by the result shown in table 4.1

this indicate the high value of the appropriate factor analysis because the

correlation between pairs of variable can be explained by the other

variable.

2. Communalities

Communality is the amount of variance a variable share with the other

entire variable being considered this is also the portion of variance

explained by common factor (Malhotra, 2010). In the communalities table

(see table 4.2) when it shown number less than 0.5, larger sample are

required because larger sample produce more stable solution or the other

option is the variable should be deleted and reanalyze the data without

factor extraction lower than 0,5.

Table 4.2 Cumulative table SPSS’18

Communalities

Initial Extraction

Advertising1 1.000 .748

Advertising2 1.000 .845

Advertising3 1.000 .410

SalesPromotion1 1.000 .788

SalesPromotion2 1.000 .600

SalesPromotion3 1.000 .686

SalesPromotion4 1.000 .642

SalesPromotion5 1.000 .677

DM1 1.000 .707

DM2 1.000 .767

DM3 1.000 .672

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DM4 1.000 .666

BrandEquity1 1.000 .629

BrandEquity2 1.000 .677

BrandEquity3 1.000 .619

BrandEquity4 1.000 .564

Extraction Method: Principal Component Analysis.

Based on the result above one of the variable with the

communalities lower than 0.5 so the writer going to cut one of the

component in X variable to get a great number extraction in

communalities table. The alteration in number of variable will affect the

KMO test and significant level.

3. Total Variance Explained

In total variance explained shown the extraction of percentage

cumulative rotation sums of squared loading that exceed 60% (see table

4.3). Table below explained that total variance attributed to each factor.

Table 4.3 Total Variance Explained SPSS’18

Total Variance Explained

Component Initial Eigenvalues Rotation Sums of Squared Loadings

Total

% of

Variance

Cumulative

% Total

% of

Variance

Cumulative

%

dimension0

1 4.685 29.282 29.282 2.876 17.972 17.972

2 1.975 12.341 41.623 2.697 16.854 34.826

3 1.757 10.979 52.602 2.386 14.911 49.737

4 1.204 7.523 60.125 1.434 8.965 58.702

5 1.076 6.727 66.852 1.304 8.150 66.852

6 .876 5.474 72.327

7 .689 4.308 76.634

8 .678 4.236 80.871

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9 .629 3.931 84.802

10 .513 3.207 88.009

11 .462 2.888 90.897

12 .397 2.479 93.376

13 .354 2.212 95.588

14 .282 1.764 97.352

15 .270 1.685 99.038

16 .154 .962 100.000

xraction Method: Principal Component Analysis.

In this table all variable X explained with a percentage 66.852%

which is means this already exceed the criteria of a presentable variance

explained. In the previous test the number of cumulative one of the

variable in X is not exceed 0.5 so that this data should be reanalyze with

the factor analysis until exceed all the criteria.

4. Rotated Component Matrix

Table 4.4 Component Matrix SPSS’18

Rotated Component Matrixa

Component

1 2 3 4 5

DM3 .804

DM4 .758

DM2 .747

DM1 .699 .413

PerceivedQ4 .437 .414

PerceivedQ1 .773

PerceivedQ3 .735

SalesPromotion3 .726

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T

a

b

l

e

4

.

4

Rotated

The Interpretability of factor can be improved through rotation.

Rotation maximizes the loading of each variable on one of the extracted

factor whilst minimizing the loading on all other factors. Rotation work

through changing the absolute values of the variable whilst keep their

differential values constant. For the rotated component matrix itself there

is several criteria that should be exceed:

(1) 1 Factor should have minimal 3 variables

(2) 1 Factor that only explained by 2 variables can be use if the reliability

test is more that 0.7

(3) If one factor only has 1 component variable, so this factor should be

deleted

(4) If 1 variable explained more than 1 factor the variable should be

deleted too.

Based on criteria above in the table 4.4 the researcher already mark several

item of variable that should be deleted and reanalyze the data, as the result:

1. All variable in Advertising should be deleted

2. 2 variables in sales promotion also deleted

3. 1 variable from brand equity also should be deleted too

PercievedQ2 .686 .460

SalesPromotion2 .480 .432

SalesPromotion5 .808

SalesPromotion1 .761

SalesPromotion4 .712

Advertising1 .813

Advertising2 .858

Extraction Method: Principal Component Analysis.

Rotation Method: Varimax with Kaiser Normalization.

a. Rotation converged in 6 iterations.

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Below is the data result after reload the data:

Table 4.5 KMO and Bartlett’s Test after Rotation

KMO and Bartlett's Test

Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .715

Bartlett's Test of Sphericity Approx. Chi-Square 798.622

Df 45

Sig. .000

From the number shown in table 4.5 the KMO is already more than 0.5 and

significant level is under 0.05

Table 4.6 Ccommunalities After Rotation

Communalities

Initial Extraction

PerceivedQ1 1.000 .675

PerceivedQ2 1.000 .731

PerceivedQ3 1.000 .605

SalesPromotion1 1.000 .629

SalesPromotion4 1.000 .553

SalesPromotion5 1.000 .722

DM1 1.000 .692

DM2 1.000 .695

DM3 1.000 .624

DM4 1.000 .647

Extraction Method: Principal Component

Analysis.

As written in communalities table all the extraction result already greater more

than 0.5

Table 4.7 Total Variance Explained

Total Variance Explained

Component Initial Eigenvalues Rotation Sums of Squared Loadings

Total

% of

Variance

Cumulative

% Total

% of

Variance

Cumulative

%

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For total variance explained already exceed the criteria of greater than

60% which is shown in the table cumulative percentage that represent number

65.729

Table 4.8 Rotated component matrix

Rotated Component Matrixa

Component

1 2 3

DM2 .792

DM3 .788

DM4 .768

DM1 .736

SalesPromotion5 .826

SalesPromotion1 .792

SalesPromotion4 .729

PercievedQ2 .852

PercievedQ1 .801

PercievedQ3 .737

Extraction Method: Principal Component Analysis.

Rotation Method: Varimax with Kaiser Normalization.

a. Rotation converged in 5 iterations.

1 Factor in this table already explained by 3-4 variables with reliability number

more than 0.5 so, this structure acceptable as a good rotated component matrix.

dimension0

1 3.373 33.733 33.733 2.492 24.919 24.919

2 1.739 17.390 51.123 2.064 20.642 45.561

3 1.461 14.606 65.729 2.017 20.168 65.729

4 .710 7.103 72.831

5 .671 6.713 79.544

6 .580 5.797 85.341

7 .468 4.676 90.017

8 .431 4.315 94.332

9 .294 2.944 97.276

10 .272 2.724 100.000

Extraction Method: Principal Component Analysis.

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4.4.2 Reliability test

Through statistical progress using SPSS researcher check the validity and

reliability of each factor make sure the data use is pass the reliability and validity

test, in this test the advertising already delete as the result of earlier step.

Table 4.9 Reliability test of Sales Promotion

Scale: Sales Promotion

Case Processing Summary

N %

Cases Valid 250 100.0

Excludeda 0 .0

Total 250 100.0

a. Listwise deletion based on all variables in the

procedure.

Reliability Statistics

Cronbach's

Alpha N of Items

.712 3

Item-Total Statistics

Scale Mean if

Item Deleted

Scale Variance

if Item Deleted

Corrected Item-

Total

Correlation

Cronbach's

Alpha if Item

Deleted

SalesPromotion1 6.3800 3.835 .513 .643

SalesPromotion4 6.8280 3.476 .488 .682

SalesPromotion5 6.5280 3.463 .598 .539

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Table 4.10 Reliability test of Direct Marketing

Scale: Direct Marketing

Case Processing Summary

N %

Cases Valid 250 100.0

Excludeda 0 .0

Total 250 100.0

a. Listwise deletion based on all variables in the

procedure.

Reliability Statistics

Cronbach's

Alpha N of Items

.800 4

Item-Total Statistics

Scale Mean if

Item Deleted

Scale Variance

if Item Deleted

Corrected Item-

Total

Correlation

Cronbach's

Alpha if Item

Deleted

DM1 10.2120 6.601 .644 .735

DM2 10.4200 6.574 .673 .718

DM3 9.8880 7.602 .560 .774

DM4 9.7520 8.268 .599 .763

Table 4.11Reliability test of Perceived Quality

Scale: Perceived Quality

Case Processing Summary

N %

Cases Valid 250 100.0

Excludeda 0 .0

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Total 250 100.0

a. Listwise deletion based on all variables in the

procedure.

Reliability Statistics

Cronbach's

Alpha N of Items

.743 3

Item-Total Statistics

Scale Mean if

Item Deleted

Scale Variance

if Item Deleted

Corrected Item-

Total

Correlation

Cronbach's

Alpha if Item

Deleted

PerceivedQ1 8.3720 1.953 .572 .655

PerceivedQ2 8.4680 1.953 .596 .628

PercievedQ3 8.4000 1.912 .541 .694

Table 4.12 Reliability test of Purchase Intention

Case Processing Summary

N %

Cases Valid 250 100.0

Excludeda 0 .0

Total 250 100.0

a. Listwise deletion based on all variables in the

procedure.

Reliability Statistics

Cronbach's

Alpha N of Items

.607 5

Item-Total Statistics

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Scale Mean if

Item Deleted

Scale Variance

if Item Deleted

Corrected Item-

Total

Correlation

Cronbach's

Alpha if Item

Deleted

PI2 16.1680 4.839 .398 .534

PI3 16.0840 4.334 .481 .480

PI4 15.3120 6.207 .266 .596

PI5 15.0920 6.494 .223 .612

PI6 15.5200 4.998 .448 .505

In Summary, from the Reliability and validity test in both dependent and

independent variable it explainedbefore extraction after extraction and after

rotation. Those table above represent acceptable item of variable because the

croncach’s alpha already grater than 0.5.

4.4.3Multiple Regressions

4.4.3.1 Normality Test

As Stated in research method to test the normality researcher going to

analyze the data based on the histogram pattern and P-P plot dot.

1. Histogram

Figure 4.10 Histogram Result

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Normality has shown in this histogram because this histogram shapes in bell

pattern. As mention by the Pamela 2006 normality can be accepted if the ratios

are -2 to +2.

2. P-P Plot Regression Standardized Residual

Figure 4.11 Regression standardized Residual

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By checking the normality using the P-P plot standardize residual show

thevalues lining up along the diagonal line, so that means this regression

model is acceptable.

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3. Scatterplot

Figure 4.12 Scatter plot

This graphic shows the right picture, where the dot pattern spread above and

below zero point at Y axle. It means the regression model in here free from

heterocedasticity problem.

4. Collinearity Statistic

Table 4.11 Multicolinearrity Problem

Model Collinearity Statistics

Tolerance VIF

1 (Constant)

TotalSP .914 1.095

TotalDM .835 1.198

TotalPQ .886 1.129

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Table 4.11 also shows this regression model free from multicolinearrity

problem Means that there is a strong relation between X and Y. Because the

tolerance is above 0.10 and the VIF (Variance Inflation Factor) number is below

10.

1. Sales Promotion

Sales promotion variable tolerance is 0.914 or >0.10, and the VIF is 1.095 or

around 1 means that this regression is free from multicolinearrity problem.

2. Direct Marketing

Direct Marketing variable tolerance is 0.835 or >0.10, and the VIF is 1.198 or

around 1 means that this regression is free from multicolinearrity problem

3. Perceived Quality

Perceived Quality variable tolerance is 0.886 or >0.10, and the VIF is 1.129 or

around 1 means that this regression is free from multicolinearrity problem

4.4.3.2F Test

Table 4.12 Anova Table

ANOVAb

Model Sum of Squares df Mean Square F Sig.

1 Regression 70.395 3 23.465 73.993 .000a

Residual 78.014 246 .317

Total 148.409 249

a. Predictors: (Constant), totalPQ, totalSP, totalDM

b. Dependent Variable: totalPI

Because of the significant shown in anova table already less than 0.05,

means that all independent factor after factor analysis and reliability

simultaneously have significant influence toward dependent factor.

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4.4.4.3 T Test

Table 4.13 Coefficients

Coefficientsa

Model Unstandardized

Coefficients

Standardized

Coefficients

t Sig. B

Std.

Error Beta

1 (Constant) .356 .255 1.397 .164

totalSP .465 .042 .534 11.032 .000

totalDM .076 .045 .085 1.683 .094

totalPQ .352 .058 .298 6.078 .000

a. Dependent Variable: totalPI

Total sales Promotion partially have a significant influence to Y this can shown

by the sig number is below than 0.05, But for Direct Marketing partially have no

significant influence to Purchase Intention this is shown by the sig number greater

than 0.05 and the last Perceived Quality partially have a significant influence to

Purchase Intention this also highly prove by sig number below 0.05.

Table 4.14 Coefficients After DM deleted

Coefficientsa

Model Unstandardized

Coefficients

Standardized

Coefficients

t Sig. B

Std.

Error Beta

1 (Constant) .428 .252 1.695 .091

totalSP .483 .041 .554 11.789 .000

totalPQ .381 .055 .323 6.882 .000

a. Dependent Variable: totalPI

In table 4.14 it show the result after total Direct marketing deleted so in the

significant table both variable already below than 0.05.

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4.4.4.4 Adjusted R2

Table 4.15 Model Summary

Model Summaryb

Model

R R Square Adjusted R Square

Std. Error of the

Estimate

dimension

0

1 .684a .468 .464 .56523

a. Predictors: (Constant), totalPQ, totalSP

b. Dependent Variable: totalPI

To check the R2 for total contribution which is total Perceived Quality and

total sales Promotion toward purchase intention is 46.8% and the rest of 53.2 % is

the contribution from another variable that haven’t included in this research. By

the number of 2 variables which is Sales Promotion and Perceived Quality already

give a big number of contributions on Purchase Intention so it can be conclude

that 2 independent Variables give a great contribution toward dependent variable.

4.5Interpretation of Result

Table 4.16 The Summary of the Result of the Research

Hypothesis Coefficient F / t-value Sig. Conclusion

H1: There is positive

relationship in promotional

mix and perceived quality on

purchase intention

.381 6.882 0.000 Accept

H2: There is positive

relationship between sales

promotion and Purchase

Intention

.483 11.789 0.000 Accept

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In the earlier step there are 2hypotheses that becoming an object to prove by the

researcher, after data loading here is the proving of the hypothesis:

1. There is a relationship between Sales Promotion and purchase intention, based

on the table above the hypothesis is accepted with the result (t= 11.789 .=

0.554, p= 0.001)

2. There is a positive relation between promotional mix and perceived quality on

the purchase intention. Promotional mix is a part of marketing strategy that

company consider as the stepping stone to get grater respond from targeted

market. In this research writer found a positive relation in Sales Promotion and

perceived Quality toward purchase intention and by this statement the h2 is

acceptable in this research. it shows that the value of Adjusted R Square or

Coefficient of Determination is 46.8% or 0.468. The result means 2 variables

which is Sales Promotion and Perceived Quality Explaining46.8 % give an

influence toward Purchase Intention, while the rest is explained by other factors

outside from the research model.

In the analyzing all aspect in promotional mix to know which one is the most

influence factor toward purchase intention, the researcher also partially analyze

per factor in promotional mixand the following is the research finding:

1. Positive impact between Sales Promotion and purchase intention on

Mead Johnson product.

In the earlier table above, it highly approve there is a significant influence

between the sales promotion and the purchase intention. From the primary

data collected sales promotion take a quite big contribution to encourage

people to buy a product.

2. Positive relation between perceived quality and purchase intention

toward Mead Johnson product

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Perceived quality also take a big influence for the purchase intention, at

first in the consideration before purchase, quality measured as the first

aspect to be considered by mom in term of buying milk formula for their

children and for their maternity.

These research findings verify that sales promotion as the most influencing factor

in the promotional mix. So, by finding the statement above it answered the study

objective. Compare to the previous research by Shih (2010)and Kumar (2011)

both of research showing the positive relation between promotional mix and

perceived quality toward purchase intention In Kumar research about the

manufacturer industry researcher finding promotional take a lot action in

determining sales number. Added by theory of Marketing mix by Prof E. Jerome

McCharty this basic concept in marketing is can be manufacturer successor in the

future but it also depend in the marketer way of thinking, they don’t need a lot

expenses in selling the product but they only should apply the best mix so it could

be suitable for everyone with different background.

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CHAPTER 5 –CONCLUSION & RECOMMENDATION

5.1 CONCLUSION

1. Promotional mix and perceived quality gives a significant impact to customer

purchase intention with the result (F= 73.993, df = 249, p = 0.001) Which means,

there is significant influence between independent and dependent variable.

2. After measuring the level of significant all variable in promotional mix, sales

promotion give the biggest contribution toward purchase intention even though in

this study cannot prove the significant level of influence of advertising and direct

marketing toward purchase intention, those indicator is still needed in promotional

mix for advertising is used for acknowledge the target market, and the direct

marketing can reach potential buyer directly.

2. Based on the analysis and discussion this research also established that the most

influencing factor in promotional mix which is the sales promotion. So, the

objective of the study already answered. There is significant relation between

sales promotion and perceived quality on the mother’s purchase Intention. Based

on calculation of adjusted R2 those two variables explained 46.8% and the rest of

53.2 % is the contribution from another variable that haven’t included in this

research.

5.2 RECOMMENDATION

5.2.1 Recommendation to company

1.For FMCG Industries now a day in the era of globalization should be

competitive in the market because fast changing trend and tight rivalry will push

away the one with no effort in entering the market. Brand building, promotion,

perceived quality depend a lot in advertising through media, and it will bring up

the purchase intention if they know how to approach their target appropriately.

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2. In this research we can conclude that to increase the purchase intention of a

product, company should pay more attention to the promotional mix that they run

in Plan of action in marketing strategy because this research finding prove that

there is a significant influence in promotional mix and the perceived quality

toward milk formula purchase intention.

3. In term of giving product knowledge to make sure people about the product

strength, nutrition in ingredient, and quality control of a product not to forget by

adding information about their babies problem and solution, this can be the way to

company combine their direct approach which mean open the workshop by

invited Indonesian mom, nurse and not to forget gynecologist as the speaker.

5.2.2 Recommendation to next study

1.In this research especially in promotional mix the researcher only can explain

the part of sales promotion so for next study, the recommendation is in next study,

add more variable of promotional mix and it will give a big probability of

acceptable variable in promotional mix so that next research can be develop

deeper. Second, for the primary data adding more questions in questionnaire and

also adding more respondent.

2. Future study can identify more variable in promotional mix and take another

independent variable such as brand equity that bring brand awareness, brand

loyalty and brand image to make it more complex and discuss diffuse relation of

those variable toward a purchase intention.

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References

Books & Journals:

Al-alak, B.A.,&Alnawas, I. A. (2010) . Mobile Marketing:

Examining the impact of trust, privacy cocern and customer’attitude on intention

to purchase. International Journal of Business and Management, 5(3), 28-41.

Armstrong, G., &Kotler, P (2009). Marketing- An Introduction.

New Jersey: Prentice Hall

Edo Rajh. (2005). The Effect of Marketing Mix Element on Brand Equity.

originally published in Privredna kretanja i eknomska politika (EconomicTrends

andEconomic Policy) No. 102, 2005, pp. 30-59.

Kumar, R.. Singh, R. (2011). Marketing Mix Strategies of Small

Manufacturers of India: Punjab Experiences. Management & Marketing, volume

IX.

Malhotra, N. K.(2010) Marketing Research an Applied Approach, Edition

3rd

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Onditi, A. A.(2012). An Evaluation of Promotional Mix Element

Influencing Sales of an Organization: A Case Study of Agricultural and Non-

Agricultural Product among Women Group, Homa Bay District, KENYA.

Syah, S. (2011). The Impact of Brand on Customer Purchase Intention.

Retrived from http://maxwellsci.com/print/ajbm/v4-105-110.pdf

Shih, T.Y. (2010). Comparative Analysis of Marketing Strategies For

Manufacturers’ and Retailers’ Brand. International Journal of Electronic Business

Management, vol.8, N0.1,pp. 56-67.

Sunday.A.A., Bayode O.B (2008). Strategic Influence of Promotional Mix

on Organization Sale Turnover in Face of Strong Competitors.

Smith,D. (2007). An Analysis of Brand Equity Determinant: Gross Profit,

Advertising, Research, and Development. Retrieve

http://journals.cluteonline.com/index.php/JBER/article/viewFile/2607/2653

Tudin, R.. Ling-Ling. (2012). Promotion Mix: Level of Awareness and

Purchase Likelihood. Working paper series No.1201 University Serawak.

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Website:

Business FMCG Indonesia

http://wartaekonomi.co.id/berita20921/tren-konsumsi-domestik-fmcg-

meningkat.html

Business Dictionary

http://www.businessdictionary.com/definition/promotion-mix.html

http://www.businessdictionary.com/definition/purchase-intention.html

http://www.businessdictionary.com/definition/perceived-quality.html

FMCG trend In Indonesia

http://www.gbgindonesia.com/en/manufacturing/article/2013/indonesia_s_

fast_moving_consumer_goods_fmcg_sector.php

Mead Johnson Website

http://www.meadjohnson.co.id

Statistics review

http://bio.classes.ucsc.edu/bio286/MIcksBookPDFs/QK06.PDF