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THE IMPACT OF MARKETING MIX, BRAND AWARENESS, AND WORD OF MOUTH TOWARDS CUSTOMER LOYALTY ON ONITSUKA TIGER IN INDONESIA By Giovanni Samuel Macawalang 014201500156 A Skripsi presented to the Faculty of Business President University in partial fulfillment of the requirements for Bachelor Degree in Management February 2019

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THE IMPACT OF MARKETING MIX, BRAND

AWARENESS, AND WORD OF MOUTH

TOWARDS CUSTOMER LOYALTY ON

ONITSUKA TIGER IN INDONESIA

By

Giovanni Samuel

Macawalang

014201500156

A Skripsi presented to the

Faculty of Business President University

in partial fulfillment of the requirements for Bachelor Degree in Management

February 2019

i

PANEL OF EXAMINERS

APPROVAL SHEET

The Panel of Examiners declare that the skripsi entitled “THE

IMPACT OF MARKETING MIX, BRAND AWARENESS, AND

WORD OF MOUTH TOWARDS CUSTOMER LOYALTY ON

ONITSUKA TIGER IN INDONESIA” that was submitted by

Giovanni Samuel Macawalang majoring in Management concentrating

in Internati onal Business from the Faculty of Business was assessed

and approved to have passed the Oral Examinations on February 14th,

2019.

ii

DECLARATION OF

ORIGINALITY

I declare that this skripsi, entitled “The Impact of Marketing Mix,

Brand Awareness, and Word of Mouth Towards Customer Loyalty

on Onitsuka Tiger in Indonesia” is, to the best of my knowledge and

belief, an original piece of work that has not been submitted, either in

whole or in part, to another university to obtain a degree.

Cikarang, Indonesia, January 29th, 2019

Giovanni Samuel Macawalang

iii

ABSTRACT

The purpose of this quantitative research was to know and explain the impact of

marketing mix, brand awareness, and word of mouth towards customer loyalty on

Onitsuka Tiger in Indonesia. The results were taken from a questionnaire form

consisting of 32 statements with the Likert scale as a tool to measure the level of

agreement was distributed to 137 respondents. Non-probability sampling with

convenience sampling was used in this study. Data analysis used in this research

were validity, reliability, classical assumption, and multiple regression. The result

affirmed that brand awareness has a partial significant influence towards customer

loyalty. While product, promotion, price, place, and word of mouth has no

significant influence towards customer loyalty. This study also showed that all

independent variables (product, promotion, price, place, brand awareness, and word

of mouth) have simultaneously significant influence towards customer loyalty with

73.8% of adjusted R2 square.

Keywords: Product, Promotion, Price, Place, Brand Awareness, Word of

Mouth, Customer Loyalty

iv

ACKNOWLEDGMENTS

The completion of this skripsi is a grateful achievement that I wish to express my

gratitude and thanks completely towards God, Jesus Christ for the support on

power, knowledge and perseverance in writing this thesis. This work is presented

as one of the requirements to accomplish the Bachelor of Science at President

University. This thesis is also completed with the support and assistance from

several others. Therefore, I would like to deliver my highest appreciation for these

people

1. My dearest family, my father Maurits Macawalang, my mother Iriana Pieter,

and my older sister Gabriella Macawalang for their endless support and

love.

2. Jean Richard Jokhu, SE., M.M. as my thesis advisor, who is always patient,

provides advices and knowledge in doing my thesis, and also teach and

guide me in my University life.

3. My ARK SURVIVAL squad which are Eric Ricardo Senjaya and Holydhio

Gilbert S. Thank you all for the memories, laugh, and support that helped

me a lot during my thesis period.

4. My COOL friends who I can’t mention one by one, thank you for the

support throughout my university life.

5. MAMA LALA KOS squad with members of Leonardo Rakinaung, Rendy

Joshua Sipahutar, Moses Armando, Jeremy Widjaja, and Frilly Ondang.

v

Thank you for giving me a place to stay in Cikarang that help me a lot to

finish my skripsi. Thank you all for the memories, laugh, love and support.

6. My PUSH squad which consists of Meickel Peterson, Meliani Natalia,

Devina Felicia, Sylvia Salim, Fira Deviana, Felly Florenita, Emmanuella

Huang, Fifi, Joseph Utama, and Daniel Owen. Thank you all for the

memories, laugh, love and support.

7. Last but not least, to all parties that couldn’t be mentioned one by one which

are all staffs, lecturers, and President Univeristy friends that took parts and

contributing on my university life. And to everyone who support, help, and

took part on my research. Without all of you involved on my writing, it is

impossible for me to finish my skripsi on time. Thank you so much for

everything you’ve done right to me.

Cikarang, Indonesia, January 29th, 2019

Giovanni Samuel Macawalang

vi

TABLE OF CONTENTS

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

DECLARATION OF ORIGINALITY ................................................................... ii

ABSTRACT ........................................................................................................... iii

ACKNOWLEDGEMENTS .................................................................................... iv

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

LIST OF APPENDICES ......................................................................................... ix

LIST OF TABLES ................................................................................................... x

LIST OF FIGURES ................................................................................................ xi

CHAPTER I: INTRODUCTION ............................................................................. 1

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

1.2. Problem Identification ................................................................................... 5

1.3. Statement of Problem .................................................................................... 6

1.4. Research of Objective ................................................................................... 6

1.5. Significance of Study .................................................................................... 7

1.6. Scope and Limitations ................................................................................... 8

1.7. Organization of Skripsi ................................................................................. 8

CHAPTER II: LITERATURE REVIEW ................................................................ 9

2.1. Review of Literature ...................................................................................... 9

2.1.1. Marketing Mix ........................................................................................ 9

2.1.1.1. Product ............................................................................................... 10

2.1.1.2. Promotion .......................................................................................... 11

2.1.1.3. Price ................................................................................................... 13

2.1.1.4. Place .................................................................................................. 14

2.1.2. Brand Awareness .................................................................................. 16

2.1.3. Word of Mouth ..................................................................................... 17

2.1.4. Customer Loyalty ................................................................................. 19

2.2. Previous Research ....................................................................................... 21

2.3. Research Gap ............................................................................................... 24

CHAPTER III: METHODOLOGY ....................................................................... 26

3.1. Research Framework ................................................................................... 26

vii

3.2. Theoretical Framework ............................................................................... 27

3.3. Hypothesis ................................................................................................... 27

3.4. Operational Definitions of Variables .......................................................... 28

3.5. Research Design .......................................................................................... 32

3.5.1. Population ............................................................................................. 32

3.5.2. Sample .................................................................................................. 32

3.5.3. Sampling Technique ............................................................................. 33

3.5.4. Questionnaire ........................................................................................ 33

3.6. Pre-test ......................................................................................................... 34

3.6.1. Validity test .......................................................................................... 35

3.6.2. Reliability test ....................................................................................... 36

3.7. Descriptive Analysis .................................................................................... 36

3.7.1. Mean ..................................................................................................... 37

3.7.2. Standard Deviation ............................................................................... 37

3.8. Classical Assumption Tests ......................................................................... 38

3.8.1. Normality Test ...................................................................................... 38

3.8.2. Heteroscedasticity Test ......................................................................... 38

3.8.3. Multicollinearity Test ........................................................................... 39

3.9. Multiple Regression .................................................................................... 39

3.10. Testing Hypothesis .................................................................................... 40

3.10.1. T-test ................................................................................................... 40

3.10.2. F-test ................................................................................................... 41

3.10.3. Coefficient Determination (R2) .......................................................... 42

CHAPTER IV: RESULTS AND DISCUSSIONS ................................................ 43

4.1. Pre-test ......................................................................................................... 43

4.1.1. Validity Test ......................................................................................... 43

4.1.2. Reliability Test ..................................................................................... 45

4.2. Descriptive analysis ..................................................................................... 47

4.2.1. Data of respondent ................................................................................ 47

4.2.2. Descriptive data .................................................................................... 52

4.3. Classical Assumption Tests ......................................................................... 53

4.3.1. Normality test ....................................................................................... 53

viii

4.3.2. Heteroscedasticity Test ......................................................................... 55

4.3.3. Multicollinearity Test ........................................................................... 56

4.4. Multiple Regression Model Result .............................................................. 57

4.5. Testing Hypothesis ...................................................................................... 59

4.5.1. T-test ..................................................................................................... 59

4.5.2. F-test ..................................................................................................... 63

4.5.3. Coefficient of Correlation (R) and Coefficient of Determination (R2) 64

4.6. Interpretation of Results .............................................................................. 64

4.6.1. The Impact of Product towards Customer Loyalty ............................. 64

4.6.2. The Impact of Promotion towards Customer Loyalty ......................... 65

4.6.3. The Impact of Price towards Customer Loyalty .................................. 65

4.6.4. The Impact of Place towards Customer Loyalty ................................. 66

4.6.5. The Impact of Brand Awareness towards Customer Loyalty ............. 66

4.6.6 . The Impact of Word of Mouth towards Customer Loyalty ................ 66

CHAPTER V: CONCLUSION AND RECOMMENDATIONS ......................... 68

5.1 Conclusion .................................................................................................... 68

5.2 Recommendation .......................................................................................... 70

5.2.2. Onitsuka Tiger ...................................................................................... 70

5.2.3. Future Research .................................................................................... 70

REFERENCES ...................................................................................................... 71

APPENDICES ...........................................................................................................

ix

LIST OF APPENDICES

Appendix 1: Questionnaire .................................................................................... 76

Appendix 2: Data Respondents .............................................................................. 86

Appendix 3: SPSS Results ..................................................................................... 95

Appendix 4: Plagiarism Document ...................................................................... 104

Appendix 5: Table ................................................................................................ 104

x

LIST OF TABLES

Table 2.1. Previous Researches.............................................................................. 21

Table 3.1. Operational Definitions ......................................................................... 28

Table 3.2. Likert Scale ........................................................................................... 34

Table 3.3. Range and Categorize of Mean Value .................................................. 37

Table 4.1. Validity Test ......................................................................................... 43

Table 4.2. Cronbach coefficient alpha ................................................................... 45

Table 4.3. Reliability Test ...................................................................................... 45

Table 4.4. Result of Multicollinearity Test ............................................................ 56

Table 4.5. Multiple Regression Model Result ....................................................... 57

Table 4.6. T-test ..................................................................................................... 60

Table 4.7. F-test ..................................................................................................... 63

Table 4.8. Coefficient of Correlation (R) and Coefficient of Determination (R2) . 64

xi

LIST OF FIGURES

Figure 3.1. Research Framework ........................................................................... 26

Figure 3.2. Theoretical Framework........................................................................ 27

Figure 4.1. Histogram of Regression Standardized Residual ................................ 53

Figure 4.2. P-plot diagram .................................................................................... 54

Figure 4.3. Heteroscedasticity Test ........................................................................ 55

Figure 4.4. Gender ................................................................................................. 48

Figure 4.5. Age ...................................................................................................... 49

Figure 4.6. Place .................................................................................................... 49

Figure 4.6. Occupation ........................................................................................... 50

Figure 4.6. Monthly Spending ............................................................................... 51

Figure 4.6. Descriptive Data .................................................................................. 52

1

CHAPTER I

INTRODUCTION

1.1 Background study

Saravanan (2016) explained that fashion trends come and go, meanwhile a society’s

values are established and evolving characteristic to their beliefs and culture. One

of the oldest footwear companies from Japan is Onitsuka Tiger. A 32 years old

former military officer Kihachiro Onitsuka started his company in 1949, in a post-

world war 2 period that saw a lot of socio-economic restructuring. Paradigms were

shifting. Pioneers all over the world gave birth to new ideas and products and

Kihachiro Onitsuka was one of them. A socially responsible man, he felt a strong

desire to help his country recover from the ruin of the second world war by founding

Onitsuka Co. Ltd. in September 1949. In 1950, he introduced Onitsuka Tiger’s first

breakthrough sports shoe innovation, the OK basketball shoe. Afterwards, Onitsuka

Tiger focusing their shoes for other sports such as for running, volley, tennis, and

other sports shoes that called all training shoes (Onitsuka, 2015).

In 1977, Onitsuka Tiger joined the shoe company GTO, a sportswear and nets

manufacturer and Jelenk, a knitwear manufacturer. In strengthening their mutual

market positions, the merger also marked the start of a new era in sport shoes with

the launch of global brand ASICS, an acronym of the Latin phrase Anima Sana In

Corpore Sano or a sound mind in a sound body. As a result of the merger, ASICS

began to focus on a wider range of products, including skiing, baseball, and golf

equipment. Although they continued to create sports shoes, but Onitsuka Tiger's

iconic series began to sink. Unfortunately, a few years have passed, the ASICS

2

business has faded. Until the 90s, the company record a lost for nine consecutive

years. The causes vary, from economic conditions to the emergence of many new

competitors (Footasylum, 2018).

But like heroic and romantic stories, ASICS has risen again after returning to its

iconic designs. In the world of fashion, the new millennium was also marked by

nostalgia for the old one. Vintage clothing, especially from the 60’s until 80’s,

became extremely popular. This resurgence is inseparable from the emergence of

retro trends and nostalgia throughout the world, where people are looking for iconic

items that are recreated with new materials and technology. In 2001, Onitsuka Tiger

reintroduced as a fashionable, vintage shoe brand from ASICS. The return of the

legend was an instant success. The face of modern, metropolitan Japan became a

cult favorite among style leaders and fashion followers worldwide. Onitsuka's

popularity skyrocketed in 2003, when the Kill Bill movie starring Uma Thurman

appeared. In the film, the heroine wears yellow Onitsuka Tiger Mexico 66 shoes,

like the one Bruce Lee used in the 1978 Game of Death film, complete with his all-

yellow costume. People began to look for these shoes which until now is known as

Kill Bill and glanced at other Onitsuka collections. Right at the same time, ASICS

is also aggressively re-creating shoes that were once popular (Bogaisky, 2018).

Here are the strategies for Onitsuka Tiger to keep their brand remained popular

and hip in Japan while so many have fallen (Brooks, 2018).

1. Modern Retro Design Born from Performance

3

Onitsuka started with athleticism in mind and has kept that a core of its

business. With its narrow long nose silhouette, thin sole, and striking color

combinations, the Onitsuka retro design is instantly recognizable. It’s a

unique and understated recognizability that remains classic.

2. Limit Sales Channels to Maintain an Expensive Brand Image

Onitsuka’s bold and daring strategy heralded by President Oyama in 1999

to avoid the tempting wholesale market ensured that Onitsuka Tiger would

become a high-end brand. In addition to limiting sales channels, the

heightened brand image would start from the construction of their products,

putting high quality materials at the forefront. That’s an image to be proud

of.

3. Establish Reasonable Pricing

Onitsuka Tiger manages to deliver high quality with the NIPPON MADE

label at pretty economical prices. You can attain a heightened NIPPON

MADE sensibility without the crazy price tag. Mostly all of the shoe models

sell for less than 13,000 yen. The Serano which uses natural leathers is

priced at 8,640 yen, the all-natural leather upper Mexico 66 you can get your

hands on for 12,960 yen.

4. Surprise of A Mysterious Brand Name To Remember

From the name “Onitsuka” to the roaring tiger image the brand screams

Japan to even those with the faintest familiarity with the country. It’s a

striking brand image and this has definitely played in Onitsuka’s favor. You

look at it and think this is a Japanese brand. And that is enticing for the

overseas consumer because along with it come all of the positive adjectives

4

characteristics you would attach to a Japan-made product – quality, cutting

edge, reliable, built to last, different. This is the “Cool Japan” that the

Japanese government doesn’t get.

Many people, including from Indonesia, were often entrusted to buy Mexican shoes

66 if there were friends or relatives who went to Japan or other countries that had

Onitsuka outlets. But apparently the popularity of Onitsuka is unstoppable. In the

end of 2017, Onitsuka Tiger opened its first outlet in Indonesia (Kurniawan, 2017).

Ryoji Shoda, the senior General Manager in lifestyle Asics Corp. division said that

lately, many Indonesians have bought Onitsuka even directly to Japan, so they

thought, why not if they just open in Indonesia (Kompas, 2017).

Apparently, the demand for shoes remains high. At the Plaza Senayan store for

example, the sales target for one year can be achieved in just three months. In 2018,

Onitsuka Tiger open their second store on Kota Kasablanka mall, Jakarta and their

third store in Bandung (Kompas, 2018).

Nicholas Saputra, one of the Indonesian famous artists, have been a fan of Onitsuka

Tiger for a long time ago. When he is 17 years old, he bought his first Onitsuka

Tiger shoes in Sydney. He like the model when first see it. Casual but made of

leather, so it can be used for more formal events. Later on, he bought another model

when travelling to japan (Wisnubrata, 2018).

1.2 Problem identification

A brand that once killed off and now restored as one of the most popular sneakers

worldwide until Indonesian people frequently ask their companions or relatives

5

who went to Japan or different nations that had Onitsuka outlets to purchase

Onitsuka Tiger shoes. Because of the popularity of Onitsuka has spread all over the

world including Indonesia, toward the end of 2017, Onitsuka Tiger opened its first

outlet in Indonesia (Kurniawan, 2017).

Based on the situation, Onitsuka Tiger has passed the purchase intention of

customer in Indonesia as for the meaning is the likelihood of a customer buying the

same product again based on their purchase history. Or it can also be the need of a

product which is driving the customer towards a purchase (Bhasin, 2018).

Amazingly, the first Onitsuka Tiger store in Indonesia sales target for one year can

be achieved in just three months (Kompas, 2018).

As for the final stage, Onitsuka Tiger need the customers to be loyal to their product

because the importance of customer loyalty impacts almost every metric important

to running a business. Without happy customers that continue to buy, the business

won’t survive. New customers tend to cost more to acquire, and do not spend as

much money as loyal, repeat customers. Keeping customers coming back for more

is critical to business success (Chambers, 2018).

Based on the information, the researcher uses customer loyalty for the dependent

variable. As for the independent variables, the researcher adapted the independent

variables from Selang (2013), Haque et al (2018), Saputra et al (2015) which are

Marketing mix that consists of product, promotion, price, place; word of mouth,

and brand awareness.

6

1.3 Statement of problem

The problem that researcher will find out can be formulated in the of question

as stated below:

1. Is there any significant influence of price towards customer loyalty on

Onitsuka Tiger?

2. Is there any significant influence of place towards customer loyalty on

Onitsuka Tiger?

3. Is there any significant influence of product towards customer loyalty on

Onitsuka Tiger?

4. Is there any significant influence of promotion towards customer loyalty on

Onitsuka Tiger?

5. Is there any significant influence of brand awareness towards customer

loyalty on Onitsuka Tiger?

6. Is there any significant influence of word of mouth towards customer loyalty

on Onitsuka Tiger?

7. Is there any simultaneously significant influence of Product, Promotion,

Price, Place, Brand Awareness, and Word of Mouth towards Customer

Loyalty on Onitsuka Tiger?

1.4 Research objective

The objectives are:

1. To find out whether price has a significant influence towards Customer

loyalty on Onitsuka Tiger.

2. To find out whether place has a significant influence towards Customer

loyalty on Onitsuka Tiger.

7

3. To find out whether product has a significant influence towards Customer

loyalty on Onitsuka Tiger.

4. To find out whether promotion has a significant influence towards Customer

loyalty on Onitsuka Tiger.

5. To find out whether brand awareness has a significant influence towards

Customer loyalty on Onitsuka Tiger.

6. To find out whether word of mouth has a significant influence towards

Customer loyalty on Onitsuka Tiger.

7. To find out whether Product, Promotion, Price, Place, Brand Awareness,

and Word of Mouth has simultaneously significant influence towards

Customer Loyalty on Onitsuka Tiger.

1.5 Significance of study

1. For Onitsuka Tiger Indonesia

This research could be a feedback for Onitsuka Tiger Indonesia to more

focused on brand awareness because according to T-test, Brand Awareness

has significant influence to make Indonesian customers to be loyal with

Onitsuka Tiger. The more customers that loyal to Onitsuka Tiger, it means

that more surplus for Onitsuka Tiger Indonesia

2. For researcher:

This research is made to fulfill the requirements of completing bachelor’s

degree in Management, concentrating in International Business. The

researcher also gets more knowledge by bringing this research as the final

task of college.

8

1.6 Scope and Limitations

The study focuses on measuring the factor that influence marketing mix (price,

product, place, promotion), word of mouth, and brand awareness towards customer

loyalty on Onitsuka Tiger in Indonesia. The respondent will be Indonesian people

who have purchased Onitsuka Tiger. The result of this research is valid for

Indonesian people who have purchased Onitsuka Tiger.

1.7 Organization of Skripsi

This paper consists of five chapters which are introduction, literature study,

methodology, data analysis and conclusion. Chapter I includes a background of the

research topic, consists of explanation of the broad topic, need of the study, problem

identification, research questions, research objectives, significance of the study,

limitation, and organization of the skripsi. Chapter II is about the literature study

which contains explanations, factor affecting, as well as measurement of dependent

and independent variables related to this particular study. Chapter III is

methodology which talks about the method used to collect the data and analysis of

the data. Chapter IV presents the data analysis and the final result of the research.

Lastly, Chapter V is the overall conclusion of the research, this includes summary

about the research finding as well as the recommendation.

9

CHAPTER II

LITERATURE REVIEW

2.1. Review of Literature

In organizing the research, the researcher needs to think about the relationship

among those variables, hence the researcher needs to initially comprehend the

theories clarifying the theme that will be inquired about and ready to investigate

and analyze the relationship among those variables. In this research, the researcher

plan to research which factors of Marketing Mix that consists of Product,

Promotion, Price, Place, Brand Awareness, and Word of Mouth that gives the most

critical impact on Customer Loyalty.

2.1.1. Marketing Mix

According to Kotler and Keller (2016), Marketing Mix are the marketing

instruments that utilized by the organization to impact the customer to purchase

their product in order to produces income.

Based on Kotler and Armstrong (2001), they define the marketing mix as "A

collection of tactical marketing tools is under control which the company combined

for produce the desired response on the market target". Marketing mix is a variable

which can be controlled by the company to affect four important variables for

influence consumers on that market addressed. There are 4 variables which are

Product, Promotion, Price, and Place. For the relationship between Marketing mix

and customer loyalty will be based on Sukamto and Lumintan (2015) for the base

of the research.

10

2.1.1.1 Product (X1)

According to Kotler and Armstrong (2001), they define product as anything that

can be offered to a market for attention, acquisition, use, or consumption and that

might satisfy a want or need. Products can be measured with this following

instruments such as (Kotler & Keller, 2016):

1. Product variation

2. Product quality

3. Product display

The intensity of competition in the market forces companies to strive for high

product adaptation to achieve competitive advantage over competitors, because

product adaptation can expand the local market base and be increased for certain

local preferences. Consumers increasingly have alternatives and are very careful in

deciding the decision to make a purchase by considering the factors of need, product

superiority, service and price comparison before deciding to buy. From these

factors, product excellence is included in the main considerations before buying.

The competitive advantage of a product is one of the determinants of the success of

a new product, where the success of the product is measured by the parameters of

the number of product sales (Tjiptono, 2008).

The product covers the whole concept of an object or process that provides a

number of values benefits to consumers. According to Lupiyoadi (2007), he defines

a product as a whole concept of an object or process that provides a number of value

benefits to consumers. Goods and services are sub categories that explain two types

product, thus the term product is sometimes used in a broad sense for interpret

11

manufacturing goods or products. The product offered includes physical goods,

such as; TV, computer, motorcycle. Medium services consist of hotel, restaurant,

transportation, person or person. A good product quality, design, variety and

features will be able to make customers to do a repeat purchase on a particular brand

products or services (Harsono, 2016). As for the indicators such as variation,

design, color, quality, and size variety (Nugroho, 2013).

2.1.1.2 Promotion (X2)

Kotler and Keller (2016) express that Promotion is a variety of approaches to

inform, persuade, and remind customers directly or indirectly about an item or

brand sold.

The promotion element in the service marketing mix forms an important role in

helping communicate the positioning of services to consumers and market

relationships. Lupiyoadi (2007) define promotion as a program communication

related to the marketing of products or services. Service promotion covers a number

of key fields. These fields, known as mixes communication or promotion mix,

including the following elements: advertising, personal sales, sales promotion,

public relations, word of mouth, and direct post (direct mail). The choice of

communication mix for services includes decisions regarding issues such as

whether to advertise, use personal sales or making publicity through more public

awareness big with tools such as editorials, publications and press activities.

One of the ways a company introducing their products that are owned is by using a

promotion. Boyd (2000) stated that promotion is an effort to attract consumers by

persuading them to accept the products offered, while the promotion strategy is a

12

controlled and integrated program of communication methods and materials

designed to present company and its products to prospective customers. Based on

Boyd (2000), he said that a company developed a strategy promotion through a

promotional mix consisting of:

1. Advertisement

Advertising (advertising) is a form presentation and promotion of ideas,

non-personal goods and services paid by certain sponsors.

2. Personal Selling

Personal selling is a process to help and persuades one or more customers

to buy the goods or services that are offered

3. Sales Promotion

Sales Promotion is an incentive activity created to encourage the purchase

or sale of a product. Sales promotions are carried out within a certain time

period or in a short period of time

4. Public Relations

Public Relation is a stimulation of unpaid and non-personal requests for a

product, service or business unit by producing interesting news about it or

preferred presentation about it in the media

Based on Swastha and irawan (2005), Promotion generally is a form marketing

communication that intends to support demand, what is implied by marketing

communications is promoting activities that attempt to scatter information, impact

as well as remind the target market for the company on its products to be willing to

acknowledge, purchase, and be loyal to the product or service offered by the

company concerned. promotional activities will help to attract as many customer

13

candidates as possible by creating interesting ads and promotions. Advertising had

significant effects in influencing customer's buying decision, which in turn helped

to acquire new customers and retain loyal customers (Harsono, 2016). As for the

indicators for promotion such as social media, attraction, easy to find, easy to

understand (Nugroho, 2013).

2.1.1.3 Price (X3)

According to Kotler and Armstrong (2001) price is the amount of money that must

be paid by consumers to obtain the desired product or service. In pricing,

management must set prices according to the product. Price decision are influenced

by the strength of the company, the environment, and the complex and amazing

competition.

Price is one of the core elements of marketing mix. (Kotler, Armstrong, Harris, &

Piercy, 2017) opined that price is the money customer want to buy for a particular

products and service. Prices are solely dependent on company policy, but of course

consider various things. Prices are said to be expensive, cheap, or ordinary - usually

for each individual it does not have to be the same, because it depends on the

individual who is motivated by the environment and the condition of the individual.

In order to be successful in marketing an item or services, each company must

determine its price right. Price is the only element of the marketing mix which

provides income or income for the company, while the other three elements

(product, distribution, and promotion) cause costs. In addition, prices are an element

of marketing mix that is flexible, meaning that it can be changed quickly. Price is

very important because it determines profit and company survival. Pricing has an

14

impact on adjusting the marketing strategy taken. The price elasticity of a product

will also affect demand and sales. Price can be measured with (Chandra, 2002):

1. Price of competitor products.

2. Discount

3. Variation of payment system

A product needs to be offered within the price range that is suitable to be paid by

the customers, a customer is less likely to change their brand preference if they feel

that the price paid for the product is suitable. Price discounts does indeed caused

temporary brand switching, but after the discounts end, customers will lose interest

in the product (Harsono, 2016). For the indicators of price such as competitive,

membership, variation of price, discount (Nugroho, 2013).

2.1.1.4 Place (X4)

According to Kotler and Armstrong (2001) Place includes company activities that

make product available to target consumers. Place does not mean the location of

the companies only but also include: marketing channels, collection and location

settings, inventory and last but not least transportation arrangements. In the service

industry, places mainly refer to location and distribution that can provide

convenience for customers in obtaining company services. The location can be

measured through how strategic the place is, the facilities that can be obtained by

prospective customers, and the ease of accessing the location. Location decisions

and sales channels include considerations on how to deliver products to customers

and where products must be placed.

15

Place is a combination of location and decision on distribution channels related to

how to deliver services to consumers and where strategic location. Satisfaction of

consumer needs not only depends on high-quality products, good promotion so that

products can be well-known and prices affordable to consumers but also the

problem of distribution channels must be considered because this problem has a

considerable role and should not be ignored. Choosing a distribution channel is

increasingly important when the product is marketed have consumers who spread

(Kotler & Keller, 2016).

The choice of distribution and channels for services is highly dependent on market

demand and the characteristics of the service itself. Submission of services in

distribution channels can be done through service providers, intermediaries and

consumers. These choices illustrate that although many services are intangible and

cannot be separated, then direct sales are suitable channels so that services can be

distributed with a large number of other channel choices. According to Hawkins

(2010) Place is a channels used to get the products to the target customers inside

and outside the company, where target customers usually makes the purchase. If a

product is always available and customers have easy access to the products or

services, there will be an increase in the customer’s willingness to purchase or use

the products or services, as a result of increment on availability, customers will have

more time and place to perceive more value for the product, which will lead to

greater customer satisfaction and loyalty (Harsono, 2016). As for the indicators for

place such as easy to find, cozy, access, design, attraction (Nugroho, 2013).

16

2.1.2 Brand Awareness (X5)

Based on O’Guinn, Allen, and Semenik, (2009) Brand Awareness is an important

indicator of customers’ knowledge about a brand, the power of a brand’s presence

inside the mind of customers and how it is very easy that knowledge can be regain

from customer’s memory. In B2C context, Brand Awareness refers to the strength

of decision-makers to recall or distinguish a brand (Homburg, Klarmann, &

Schmitt, 2010). Aaker (2008) said that brand awareness is the ability of consumer

to recognize that a brand is a part of a certain product. Brand Awareness establishes

a conclusive role in the arrangement of brands that interest customers while

choosing a product or service. The customers’ ability to recognize a brand under

particular circumstances is a result of his or her brand awareness to the brand

connection (Lin, 2013).

According to Terence. A. Shimp (2003), brand awareness is the ability of a brand

to emerge in the minds of consumers when they was thinking a certain products and

how easy the name of the brand to pop up in the consumer’s mind. Brand Awareness

can be measured in 3 parts, which are:

1. Spontaneous (unaided) Awareness

Consumers will be given a list of several brands of certain categories of

products. Consumers will choose the brands they know from the list

provided without further hint or instructions. Spontaneous awareness is a

spontaneous reaction from consumers for brands in certain product

categories.

17

2. Top of Mind Awareness

Top of Mind Awareness is a brand that pop up first in a customer’s mind in

a certain product category. For example, customer will be given a question

regarding a brand that they remember first in a certain product category.

3. Aided awareness

Aided awareness is a brand that is actually already known by consumers not

spontaneously and may be the brand that has been used by consumers.

Usually it will need another stimulus to help consumers to be able to

remember other brands of product categories.

Based on Koniewski (2012), he stated that brand awareness is the starting point for

a customer to be loyal to a brand. When a customer already aware of a certain brand,

whenever the customer sees or heard about that certain brand, the customer will

remember and when that brand gives a good memory to the customer than the

customer will be loyal to that certain brand. According to Lin (2006), warranty and

brand awareness will help building brand equity to impact developing customer

loyalty. As for the indicators such as spontaneous awareness, top of mind

awareness, aided awareness, and priority (Tandarto & Dharmayanti, 2017).

2.1.3 Word of Mouth (X6)

Kotler and Keller (2016) said that Word of Mouth (WOM) communication is a

communication process in the form of giving recommendations both individually

and in groups to a product or services that aim to provide information personally.

According to Goyette, Richard, Bergeron, and Marticotte (2010), WOM is defined

as exchange, flow information, or the conversation of two individuals. Word of

mouth communication is one of the communication channels that is often used by

18

many companies, because this communication is considered very effective in

facilitating the marketing process and is able to provide benefits to the company.

Marketing using word of mouth can also be called word of mouth marketing, which

is a marketing activity through the intermediary of people to people, both verbally,

written, and electronic communication devices related to the experience of

purchasing services or experience using product or service (Kotler & Keller, 2016).

Another definition of word of mouth marketing based on Sumardy (2011), word of

mouth marketing is a marketing activities that trigger consumers to discuss,

promote, recommend to sell the brand of a product to other prospective customers.

In a study conducted by Goyette, Richard, Bergeron, and Marticotte (2010) on the

WOM measurement scale, they proposed several indicators for measuring WOM,

including:

1. WOM intensity

It is the intensity or conversation volume about a product that is happens in

everyday conversation.

2. Positive valence WOM

It is a positive evaluation as the effect of customer satisfaction that is

expressed in daily conversations such as giving recommendations or

invitations to buy a product.

3. Negative valence WOM

It is the opposite from the positive valence WOM. It is submitting negative

things to others about a product caused by the inability of the product to

meet consumer expectations.

19

4. WOM content

Contents of the conversation or content of the discussion of a product such

as type, quality, price, etc.

Zamil (2011) also reveals word of mouth as an informal transmission of ideas,

opinions, comments and information between two people, both of whom are not

marketers. The word of mouth phenomenon is believed to be able to encourage

purchases, can affect the community, an efficient promotion strategy because it

does not require large costs, can create a good image and make consumers to buy

back the product. As for the indicators for word of mouth such as recommendation,

information, social media comments, and positive valence WOM (Babin et al,

2005).

2.1.4 Customer Loyalty (Y)

Customer loyalty is a consistent consumer preference for making purchases on the

same brand on specific products or certain service categories. Customer loyalty is

a strong commitment in subscribing or buying a brand consistently in the future

(Schiffman & Kanuk, 2010).

According to Griffin (2007), Customer loyalty is the creation of attitudes and

patterns a person's behavior towards the purchase and use of the product which is a

result of their previous experience. Whereas according to Karsono (2008), customer

loyalty is a matter deep commitment to buy back or subscribe to a product or service

consistently in the future so that it can cause repetition of the same product

purchases despite the influence of the situation from various marketing efforts that

have the potential to causing the move to brand products. Griffin (2007) concluded

20

that buying behavior in a loyal consumer showed similarities on four traits, namely

repeated purchases, product purchases from the same company, advice to others to

use the same product, and the tendency to ignore competing products.

Customer loyalty as the strength of the relationship between the relative attitude of

an individual to a unit (brand, service, shop, or supplier) and repurchase. Customer

loyalty emphasizes the consumer purchase sequence such as the proportion and

probability of purchase. Customer loyalty is an important factor that becomes a

measure of repurchase (Surya & Setiyaningrum, 2009). As for the indicators for

customer loyalty such as regular repeat purchases, purchases across products and

services, refer friends, and refer family (Tandarto & Dharmayanti, 2017). Griffin

(2007) states that the benefits obtained by the company if they have loyal customers

are as follows:

1. Can reduce the costs for Marketing

Marketing costs will be cheaper in maintaining consumers for a long time,

when compared to efforts to attract and get new consumers.

2. Can increase the trading volume

Strong loyalty to a brand will result in increased sales and strengthen the

confidence of marketing intermediaries, so as to increase the share of the

company.

3. Attract new customers

Consumers from a certain brand who feel satisfied and like a certain brand

will create a feeling of confidence for prospective new customers to

consume a brand, especially if the purchase they carry contains a high risk.

21

4. Decrease customer’s turn over cost

This is due to the level of replacement of consumers become less.

5. Can give time to respond to threats from competing company products

Brand loyalty will give time to one company to respond to competitors'

movements.

6. Can reduce failure costs, such as product replacement costs, and etc.

7. Positive Word of Mouth

Assuming that loyal consumers means they are satisfied with the product.

2.2 Previous Research

Table 2.1 Previous Research

No. Author and

Year

Title Variables Method Result

1. Haque, M. S.

S., Bappy, T.

A., &

Arifuzzaman,

M. (2018)

The

Impact of

Brand

Awareness

on

Customer

Loyalty

towards

Igloo Ice

Cream: A

Study on

-Customer

loyalty

-Brand

awareness

-brand name

-brand logo

-brand slogan

-product

-price

-product

availability

quantitative brand

characters,

affordable

price,

sponsorship,

brand name

and slogan

influence more

to positively

affect the

customer

22

Dhaka

University

Students

-

communication

-trade show

-organizing

event

-sponsorship

-promotional

merchandise

loyalty as in

increase

purchase or

facilitate

advocacy for

Igloo

2. Christian

A.D Selang

(2013)

Impact of

marketing

mix

towards

Customer

Loyalty on

Fresh

Mart Bahu

mall

Manado

-product

-price

-promotion

-place

-people

-process

-Physical

evidence

-customer

loyalty

quantitative Simultaneously

Products,

Prices,

Promotions

and Places

have a

significant

effect on

Consumer

Loyalty. In

Partial

Products,

Prices have a

significant

effect on

Consumer

23

Loyalty while

Promotion and

Place have no

significant

effect on

Consumer

Loyalty.

3. Adrian

Yuwono and

Prof. Dr.

Hatane

Semuel, MS.

1 (2015)

Impact of

marketing

mix

towards

Customer

Loyalty

that used

digital

printing

PT. Elang

Perkasa

Langgeng

-customer

loyalty

-product

-promotion

-price

-place

Quantitative From the

research, the

researcher can

conclude that

Product, price,

and place is

significantly

influence

towards

customer

loyalty

whereas

promotion is

not

significantly

influence

24

customer

loyalty

4. Ida Bagus

Indra

Saputra,

Dr. Alit

Suryani, and

Drs. I Ketut

Nurcahya

(2015)

The

impact of

customer

relation

and word

of mouth

towards

customer

loyalty

bank

customers

BPD Bali

-customer

loyalty

-customer

relation

-word of

mouth

quantitative Customer

relation and

word of mouth

significantly

influence

customer

loyalty

2.3 Research Gap

The Research Gap between this research and the previous researches are not

focused on one field of study such as marketing mix towards customer loyalty,

brand awareness towards customer loyalty, and word of mouth towards customer

loyalty. But this research is a combination of marketing mix, brand awareness, and

word of mouth towards customer loyalty. This previous research focused in brand

awareness towards customer loyalty and also conducted in other countries, such as

25

Bangladesh titled “The Impact of Brand Awareness on Customer Loyalty towards

Igloo Ice Cream: A Study on Dhaka University Students” by Haque, Bappy, and

Arifuzzaman (2018). While this previous research titled “Impact of marketing mix

towards Customer Loyalty on Fresh Mart Bahu mall Manado” by Selang (2013)

focused in marketing mix towards customer loyalty. This previous research titled

“The impact of customer relation and word of mouth towards customer loyalty bank

customers BPD Bali” by Ida Bagus Indra Saputra, Alit Suryani, and I Ketut

Nurcahya (2015) focused in customer relation and word of mouth towards customer

loyalty.

26

CHAPTER III

RESEARCH METHODOLOGY

3.1 Research Framework

This research is conducted by using quantitative method because the process of this

research is deductive where to know the answer if the identified problem, the

researcher using several theories to get the hypothesis. Then the hypothesis will be

tested by collecting data from the field. All of the gathered data is analyzed using

quantitative method by using descriptive or inferential statistics to conclude the

hypothesis and know whether it proven or not. Quantitative research usually done

to random sample to make the result of the research generalized to the population

where the sample taken.

Figure 3.1 Research Framework

Source: Developed by Researcher

Problem Statement

Variables

Literature Review

questionnaire

Pretest Validity and Reliability

Data valid and reliable

Data Analysis

Results and Recommendations

27

3.2 Theoretical Framework

Figure 3.2: Theoretical Framework

Source: adapted from Selang (2013), Haque et al (2018), Saputra et al (2015)

3.3 Hypothesis

In order to find the relations between marketing mix, brand awareness, word of

mouth towards customer loyalty. The hypothesis in this particular study is

presented as:

Product

(X1)

Promotion

(X2)

Price

(X3)

Place

(X4)

Brand

Awareness (X5)

w Word of Mouth

(X6)

Customer

Loyalty (Y)

H1

H2

H6

H7

H5

H3

H4

28

H1 : There is a significant influence of Product towards Customer Loyalty of

Onitsuka Tiger.

H2 : There is a significant influence of Promotion towards Customer Loyalty

of Onitsuka Tiger

H3 : There is a significant influence of Price towards Customer Loyalty of

Onitsuka Tiger.

H4 : There is a significant influence of Place towards Customer Loyalty of

Onitsuka Tiger.

H5 : There is a significant influence of Brand Awareness towards Customer

Loyalty of Onitsuka Tiger.

H6 : There is a significant influence of Word of Mouth towards Customer

Loyalty of Onitsuka Tiger.

H7 : Product, Promotion, Price, Place, Brand Awareness, and Word of Mouth

have simultaneously significant influence towards Customer Loyalty of

Onitsuka Tiger

3.4 Operational Definitions of Variables

Table 3.1 Operational Definitions

Variable Definition Indicator Scale

Product

(X1)

anything that can be

offered to a market for

attention, acquisition,

1. Variation

2. Design

3. Color

Likert Scale

29

use, or consumption

and that might satisfy a

want or need (Kotler &

Armstrong, 2001).

4. Quality

5. Size Variety

(Nugroho, 2013)

Promotion

(X2)

Promotion is a variety

of approaches to

inform, persuade, and

remind customers

directly or indirectly

about an item or brand

sold (Kotler & Keller,

2016).

1. Social Media

2. Attraction

3. Easy to

understand

4. Easy to find

(Nugroho, 2013)

Likert Scale

Price

(X3)

price is the money

customer want to buy

for a particular products

and service. Prices are

solely dependent on

company policy, but of

course consider various

things. Prices are said

to be expensive, cheap,

or ordinary - usually for

each individual it does

not have to be the same,

1. Competitive

2. Membership

3. Variation of

price

4. Discount

(Nugroho, 2013)

Likert Scale

30

because it depends on

the individual who is

motivated by the

environment and the

condition of the

individual (Kotler et al.,

2017).

Place

(X4)

Place is a channel used

to get the products to

the target customers

inside and outside the

company, where target

customers usually

makes the purchase

(Hawkins, 2010).

1. Easy to find

2. Cozy

3. Access

4. Design

5. Attraction

(Nugroho, 2013)

Likert Scale

Brand

Awareness

(X5)

Brand Awareness is an

important indicator of

customers’ knowledge

about a brand, the

power of a brand’s

presence inside the

mind of customers and

how it is very easy that

knowledge can be

1. Spontaneous

2. Top of mind

awareness

3. Aided

awareness

4. Priority

(Tandarto &

Dharmayanti, 2017)

Likert Scale

31

regain from customer’s

memory (O’Guinn et

al., 2009).

Word of

Mouth

(X6)

WOM is defined as

exchange, flow

information, or the

conversation of two

individuals. Word of

mouth communication

is one of the

communication

channels that is often

used by many

companies, because this

communication is

considered very

effective in facilitating

the marketing process

and is able to provide

benefits to the company

(Goyette et al., 2010).

1. Recommended

2. Information

3. Social Media

comments

4. Positive

valence WOM

(Babin et al, 2005)

Likert Scale

Customer

Loyalty

(Y)

customer loyalty is a

matter deep

commitment to buy

1. Regular repeat

purchases

Likert Scale

32

back or subscribe to a

product or service

consistently in the

future so that it can

cause repetition of the

same product purchases

despite the influence of

the situation from

various marketing

efforts that have the

potential to causing the

move to brand products

(Karsono, 2008).

2. Purchases

across

products and

services

3. Refers friends

4. Refers family

(Tandarto &

Dharmayanti, 2017)

3.5 Research Design

3.5.1 Population

According to Sujarweni (2015), The population is defined as a generalization region

consisting of the objects or the subjects that have certain qualities and

characteristics that are set by the researcher to be learned and then take the

conclusion. The population in this research are people who know about Onitsuka

Tiger.

3.5.2 Sample

The Sample is a part of a number of characteristics possessed by the population

used for the research (Sujarweni, 2015). The researcher use Hair theory as he said

33

that as a general rule, the minimum is to have at least five times as many

observations as the number of variables to be analyzed (Hair, 2014).

N = 5 x q

= 5 x 7

= 35

Where,

N = Sample Size

q = total variables

3.5.3 Sampling technique

In this quantitative research, the sampling technique that was used is non-

probability sampling. It means, in this quantitative research, the researcher selected

respondents’ population that based on subjective judgement, rather than random

respondents. In non-probability sampling there is convenience sampling. The

convenience sampling is a non-probability sampling which can dependable on the

information accumulation population of individuals who are advantageously

accessible or available when it comes to take an interest and take part of this

research (Saunders, Lewis, & Thornbill, 2012).

3.5.4 Questionnaire

The tool that is used to make the questionnaire is Google Form. After the researcher

create the questionnaire, the researcher will distribute the questionnaire to

respondents. The link of the questionnaire was distributed through social media

such as WhatsApp, Line, Instagram, Twitter, etc. in this quantitative research, the

34

researcher used six independent variables (X) and one dependent variable (Y).

Likert scale is used by the researcher in the questionnaire. Likert scale is used to

calculate or measure the variable value that shown in the number form, so it can be

analyzed accurately, efficiently, and last but not least more communicative

(Suwartono, 2014). Likert scale test how strongly disagree and agree of respondents

with the representation of five-point scale.

Table 3.2 Likert Scale

Source: (Suwartono, 2014)

Likert scale being used by the researcher because this type of scaling could define

the precise number of scaling based on respondents. From the table above, the

respondents were asked to answer the agreement level that connected to the

variables honestly by using five points Likert scale ranging from strongly disagree

until strongly agree.

3.6 Pre-test

The researcher utilizes primary data or information for the pre-test to know the

validity and reliability of poll. Primary data or information alludes to data that got

first-hand by the researcher on the variables of interest for the particular reason of

the research. To decide the inquiries can be utilized or not, both validity and

reliability test are performed.

35

3.6.1 Validity Test

According to Sugiyono (2013), a valid instrument has a definition the measuring

instrument used to obtain the data is valid. Hence, validity data is not different

between the data reported by the researcher with actual data that occurs in the object

of the research. To run the validity test, the researcher uses SPSS v.21 to see the r

to summarize the validity of the question in the questionnaires. If (n) = 51, alpha =

0.05 be obtained r table 0.361. For the question to be valid, r should be bigger than

r table which is 0.361. if the r of the question is lower than 0.361 so the question is

invalid. The formula of validity test is as follow:

Validity Test Formula

Source: (Black, 2010)

36

3.6.2 Reliability Test

According to Sugiyono (Sugiyono, 2013), Reliability is synonymous with the

consistency of a test, survey, observation, or other measuring device. It is to check

the correlation of statement in the questionnaire. To get the results of reliability test,

the researcher uses Cronbach Alpha which is the reliability coefficient. To get a

positive result, Cronbach Alpha value should be minimum 0.6 to indicate that the

statement is reliable.

Reliability Test Formula

Source: (Goforth, 2015)

3.7 Descriptive Analysis

Sugiyono (Sugiyono, 2013) said that Descriptive Analysis Method is the statistic

used for the researcher to analyze data by data that has been accumulated because

without intending to make conclusions that apply to the public or generalization.

Descriptive analysis is used to analyze data that has been collected without

intending to accept generally accepted conclusions or generalizations.

37

3.7.1 Mean

Black (Black, 2010) said that the mean is a measure of data concentration. The

mean data is also a statistic because it is able to describe that the data is in the range

of the mean data. The mean cannot be used as a measure of concentration for

nominal and ordinal data types.

Mean Formula

Source: (Black, 2010)

Table 3.3. Range and Categorize of Mean Value

Source: (Black, 2010)

3.7.2 Standard Deviation

Standard deviation is the statistical value used to determine how the data is

distributed in the sample, and how close the individual data points are to the mean

or sample values. A standard deviation from a data set equal to zero indicates that

38

all the values in the set are the same. A larger deviation value will mean that

individual data points are far from the average value (Black, 2010).

Standard Deviation Formula

Source: (Black, 2010)

3.8 Classic Assumption Test

3.8.1 Normality Test

Normality Test is a test that used with the purpose is to assess the distribution of

data in a group of data or variables, whether the data distribution is distributed

normally or not. Normality test is useful for determining data that has been collected

normally distributed or taken from a normal population. The classic method in

testing the normality of a data is not so complicated. Normality test can be done by

histogram test, P-Plot normal test, Chi Square test, Skewness and Kurtosis or

Kolmogorov-Smirov test (Hidayat, 2013).

3.8.2 Heteroscedasticity Test

Heteroscedasticity test have a goal to assesses whether there is an inequality of

variants from the residuals for all observations in the linear regression model. This

test is belong to one of the classic assumption tests that must be done in linear

39

regression. If heteroscedasticity assumptions are not met, then the regression model

is declared invalid as a forecasting tool (Hidayat, 2013). To detect the

heteroscedasticity can be found by analyze the plot that scatter on the scatter plot

that has been resulted from SPSS.

3.8.3 Multicollinearity Test

Multicollinearity is used to find a situation that shows a strong correlation between

two or more independent variables in a multiple regression analysis. The regression

models in this case include: linear regression, logistic regression, panel data

regression and cox regression.

In situations where multicollinearity occurs in a multiple regression model, the beta

coefficient value of an independent variable or predictor variable can change if

there is an addition or subtraction of the independent variable in the model.

Therefore, multicollinearity does not reduce predictive power simultaneously, but

affects the predictive value of an independent variable. The predictive value of an

independent variable here is the beta coefficient. Therefore, in some cases

multicollinearity detected with the large standard value error of an independent

variable in regression model (Hidayat, 2016).

3.9 Multiple Regression

Based on Sugiyono (2013), regression analysis is used to make predictions, how to

change the dependent variable when the value of independent variables increased

or lowered value (manipulated).

40

Data analysis techniques in this study using regression analysis linear multiple.

Multiple linear regression analysis is a statistical technique used to predict how the

influence of independent variables to the dependent variable.

Multiple Regression Formula

Source: (Black, 2010)

3.10 Testing Hypothesis

3.10.1 T-test

Based on Sujarweni (Sujarweni, 2015), T Statistic test shows how much influence

the individual independent variable in explaining the variation in the dependent

variable. The test done by reviewing the value of probability. If the probability

value is less than 0,05 then the independent variable affects the dependent variable.

Meanwhile, if the probability is greater than 0,05, then the independent variable had

no effect on the dependent variable.

a. If t count > t table and the probability of significance <5% (λ = 0.05) then

Ho is accepted, and Ha is rejected. That means there is a significant effect

of each independent variable on the dependent variable.

41

b. If t count < t table and probability of significance >5% (λ = 0.05) then Ho

is rejected, and Ha is accepted. That means there is no significant effect of

each independent variable on the dependent variable.

T-test Formula

Source: (Black, 2010)

3.10.2 F-test

The F statistic test basically shows whether all independent variables entered in the

model have a simultaneous influence on the dependent variable (Ghozali, 2013). In

this research, the researcher wants to find out either the marketing mix, brand

awareness, and word of mouth will simultaneously influence Customer Loyalty or

not. The F test is a test conducted to determine the effect of the independent

variables together the same as the dependent variable, whether it has a significant

influence or not. Basic decision making of F test will based on, as follows:

1. By comparing the value of F count with F table

- If F table> F count, then Ho is accepted, and Ha is rejected

- If F table <F counts, Ho is rejected, and Ha is accepted

2. Using a probability number:

42

- If the probability of significance is> 0.05, then Ho is accepted, and Ha

is rejected

- If the probability is significant <0.05 then Ho is rejected, and Ha is

accepted.

F-test Formula

Source: (Black, 2010)

3.10.3 Coefficient Determination (R2)

Coefficient determination or R2 is a summary measure that tells how well the

sample regression line fits the data. It rates how many percentages the Y variable

explained by the regress or jointly. It is a nonnegative quantity between 0 and 1. In

this quantitative research, the researcher focuses on Adjusted R2 value because in

this study, the independent variable used is more than two variables. The value of

adjusted R2 is range from 0 to 1. (Ghozali, 2013).

Coefficient Determination Formula

Source: (Black, 2010)

43

CHAPTER IV

RESULTS AND DISCUSSIONS

4.1 Pre-test analysis

4.1.1 Validity Test

Validity test is the degree to which the scores from a measure speak to the variable

they are expected to. This research validity test was calculated with SPSS v.21 to

know the validity test of the inquires in the questionnaires

Table 4.1. Validity Test

Variable Sub

Variable

R table Pearson

Correlation

Result

Product(X1)

A1 0.361 0.726 Valid

A2 0.361 0.729 Valid

A3 0.361 0.685 Valid

A4 0.361 0.655 Valid

A5 0.361 0.769 Valid

Promotion(X2)

B1 0.361 0.817 Valid

B2 0.361 0.732 Valid

B3 0.361 0.820 Valid

B4 0.361 0.849 Valid

B5 0.361 0.807 Valid

Price(X3)

C1 0.361 0.781 Valid

C2 0.361 0.818 Valid

44

C3 0.361 0.789 Valid

C4 0.361 0.788 Valid

Place(X4)

D1 0.361 0.743 Valid

D2 0.361 0.822 Valid

D3 0.361 0.735 Valid

D4 0.361 0.692 Valid

D5 0.361 0.732 Valid

Brand Awareness(X5) E1 0.361 0.787 Valid

E2 0.361 0.864 Valid

E3 0.361 0.901 Valid

E4 0.361 0.890 Valid

Word of mouth(X6) F1 0.361 0.749 Valid

F2 0.361 0.838 Valid

F3 0.361 0.802 Valid

F4 0.361 0.729 Valid

Customer loyalty(Y)

G1 0.361 0.776 Valid

G2 0.361 0.732 Valid

G3 0.361 0.687 Valid

G4 0.361 0.883 Valid

G5 0.361 0.837 Valid

Source: processed primary data by SPSS v.21

As shown from table 4.1, it concludes the results of pre-test for validity test that

consists of six independent variables and one dependent variable. The validity of

variable questions can be seen by comparing the R table with Pearson-correlation.

45

The table shows that all of the questions are valid after compared the Pearson-

correlation with R table in 0.361.

4.1.2 Reliability test

Reliability test is a proportion of the stability or consistency of test scores. This

reliability test was calculated with SPSS v.21 to know the reliability test of the

questions in the questionnaire. Cronbach coefficient alpha will be used as a tool to

compare the test results.

Table 4.2 Cronbach coefficient alpha

Source: (Stephanie, 2014)

Table 4.3 Reliability test

Variable Questions Cronbach’s

Alpha

Internal

consistency

Results

X1 5 0.758 Acceptable Reliable

X2 5 0.865 Good Reliable

X3 4 0.806 Good Reliable

46

X4 5 0.799 Acceptable Reliable

X5 4 0.884 Good Reliable

X6 4 0.785 Acceptable Reliable

Y 5 0.842 good Reliable

Source: processed primary data, by SPSS v.21

1. Product

The first variable, which is Product, was tested the reliability using

Cronbach’s alpha. From the table 4.3, it is shown that the result is satisfying,

which is 0.758. This means that X1 has an acceptable reliability rate.

2. Promotion

The second variable, which is Promotion, was tested the reliability using

Cronbach’s alpha. From the table 4.3, it is shown that the result is satisfying,

which is 0.865. This means that X2 has a good reliability rate.

3. Price

The third variable, which is Price, was tested the reliability using

Cronbach’s alpha. From the table 4.3, it is shown that the result is satisfying,

which is 0.806. This means that X3 has a good reliability rate.

4. Place

The forth variable, which is Place, was tested the reliability using

Cronbach’s alpha. From the table 4.3, it is shown that the result is satisfying,

which is 0.799. This means that X4 has an acceptable reliability rate.

47

5. Brand Awareness

The fifth variable, which is Brand awareness, was tested the reliability using

Cronbach’s alpha. From the table 4.3, it is shown that the result is satisfying,

which is 0.884. this means that X5 has a good reliability rate.

6. Word of Mouth

The sixth variable, which is word of mouth, was tested the reliability using

Cronbach’s alpha. From the table 4.3, it is shown that the result is satisfying,

which is 0.785. this means that X6 has an acceptable reliability rate.

7. Customer Loyalty

The seventh variable, which is Customer loyalty, was tested the reliability

using Cronbach’s alpha. From the table 4.3, it is shown that the result is

satisfying, which is 0.842. this means that Y has a good reliability rate.

4.2 Descriptive Analysis

4.2.1 Data of Respondent

This research aims to investigate the impact of marketing mix, Word of mouth, and

Brand awareness towards Customer loyalty on Onitsuka Tiger in Indonesia.

Furthermore, the target of this research is people who knows or ever buy Onitsuka

Tiger. In total, there are 137 respondent’s data collected, and all of 137 data is

qualified as the respondents answers all questions statement being asked.

48

Figure 4.4 Gender

Source: Researcher Primary data

With total of 137 respondents who have participated to fill the questionnaire, the

results above show that for gender (Jenis kelamin) there are more male respondents

answer the questionnaires rather than female respondents. As seen from Figure 4.4

above there are 45 male (Pria) respondents (54.7%), while female (Wanita)

respondents have 62 respondents (45.3%)

49

Figure 4.5 Age

Source: Researcher Primary data

Taken from 137 respondents, the majority respondent’s age (Usia) are 20-25 with

111 respondents (81%), followed by age under 20 with 16 respondents (11.7%),

age 25-30 with 6 respondents (4.4%), and last but not least age over 30 with 4

respondents (2.9%).

Figure 4.6 Place

Source: Researcher Primary data

50

In this research, according to the figure above, the respondents mostly placed

(Tempat tinggal) in Cikarang with 62 respondents (45.3%), followed by Bekasi

with 42 respondents (30.7%), Tangerang with 10 respondents (7.3%), and many

other cities.

Figure 4.7 Occupation

Source: Researcher Primary data

From 137 respondents, it is clear that majority of the respondent’s occupation

(Pekerjaan) is university students (Pelajar/mahasiswa) with 109 respondents

(79.6%), followed by private employees (Swasta) with 17 respondents (12.4%), and

many more.

51

Figure 4.8 Monthly Spending

Source: Researcher Primary data

In this research, according to figure above, most of the respondent’s monthly

spending (Pengeluaran bulanan) are 1 million until 5 million rupiah with 107

respondents (78.1%). Followed by under 1 million rupiah with 17 respondents

(12.4%).

52

4.2.2 Descriptive data

Figure 4.9 Descriptive Data

Source: Researcher Primary data

From figure 4.9, it represents the descriptive data of people that know about

Onitsuka Tiger. It shows the respondent’s responses for both independent and

dependent variables. The most dominant variable would be the first variable, which

is Product, with the value of mean of 3.8, which means that most of the answers of

the respondents were between neutral and agree. While the lowest variable would

be Brand Awareness, with the mean of 3. So, the most of the respondent’s answers

was neutral.

Product Promotion Price PlaceBrand

AwarenessWord ofMouth

CustomerLoyalty

Mean 3.8 3.4 3.6 3.6 3 3.4 3.4

Std. Dev 0.7 0.9 0.75 0.74 1 0.9 0.8

3.8

3.4

3.6

3.6

3

3.4

3.4

0.7

0.9

0.7

5

0.7

4 1

0.9

0.8

DESCRIPTIVE DATA

Mean

Std. Dev

53

4.3 Classical Assumption Tests

4.3.1 Normality Test

Normality test is created to know how the data circulated as well as to decide the

data whether it is ordinally distributed or not. The normality test is mainly used to

explain the probability. To determine the normality of this research is by using

Histogram and P-plot, the result as follows:

Figure 4.1 Histogram of Regression Standardized Residual

Source: Processed primary data, by SPSS v.21

As it shown in figure 4.1, it can be seen from the figure that the line on histogram

illustrate bell shape. The figure above is normally distributed as the line curved

perfectly on the center which indicates that the data have a variation of value. While

if the curve is deviated to the right or left, the data are not normal.

54

Figure 4.2 P-plot Diagram

Source: processed primary data, by SPSS v.21

Based on the figure 4.2, it shows the plots spread around the diagonal line and

follow the direction of the diagonal line. By that indicator it can be said that the

data distribution is normal, and the figure above represents Normal P-P Plot of

Regression Standardized Residual.

55

4.2.2 Heteroscedasticity Test

In the multiple regression, some of the variance need to be tested to check the

residuals of the observation with any other observations. If the variance from the

residuals of the observations to other observations remain the same, it is called

heteroscedasticity. Multiple regressions equation is good if there are no

heteroscedasticity.

Figure 4.3 Result of Heteroscedasticity Test

Source: Processed primary data, by SPSS v.21

56

4.2.3 Multicollinearity Test

Table 4.4 Result of Multicollinearity Test

Coefficients

Model Collinearity Statistics

Tolerance VIF

1

(Constant)

X1 0.389 2.56

X2 0.333 3.00

X3 0.377 2.65

X4 0.286 3.49

X5 0.437 2.28

X6 0.473 2.11

A. Dependent Variable: Y

Source: Processed primary data, by SPSS v.21

In general, the results of multicollinearity test in table 4.4 above have a positive

result. The general value to measure Tolerance is greater than 0.1 or close to 1,

whereas the acceptable value for VIF is less than 10, in order to verify that there is

no multicollinearity problem around. From table 4.4, VIF (Variance Inflation

Factor) of every independent variable which are product, promotion, price, place,

brand awareness, and word of mouth has value less than 10 which is good. On the

other side, tolerance value of all independent variables also has a good result

because all the tolerance values are more than 0.1 (Hidayat, 2016).

57

4.4 Multiple Regression Model Result

Researcher using multiple linear regression in this research to define whether there

is any significant influence from independent variables to the dependent variable.

In a multiple regression, researcher used statistical calculation from SPSS v.21. The

summary results of the SPSS calculation as follows:

Table 4.5 Multiple Regression Model Result

Coefficients

Model Unstandardized

coefficients

Standardized

coefficients

T

Sig

B Std. Beta

1

(Constant)

X1

X2

X3

X4

X5

X6

.576

.149

.099

.102

.139

.527

.109

1.211

.092

.077

.107

.099

.068

.076

.112

.098

.068

.115

.515

.092

.476

1.613

1.294

.955

1.405

7.771

1.434

.635

.109

.198

.341

.162

.000

.154

Source: Processed primary data, by SPSS v.21

58

From the result in table, if written in standardized form of the question, the

regression is as follows:

Y = .576 + .117 X1 + .098 X2 + .063 X3 + .117 X4 + .517 X5 + .084 X6

Where,

Y = Customer Loyalty

X1 = Product

X2 = Promotion

X3 = Price

X4 = Place

X5 = Brand Awareness

X6 = Word of Mouth

From the formula above, the researcher can construct a conclusion of the test result

as follow:

1. Table 4.5. indicate that the regression coefficient of Product is .109 which

is more than α (0.05). It means that Product is not significantly influence

Customer Loyalty of Onitsuka Tiger in Indonesia.

2. Table 4.5. indicate that the regression coefficient of Promotion is .198 which

is more than α (0.05). It means that Promotion is not significantly influence

Customer Loyalty of Onitsuka Tiger in Indonesia.

59

3. Table 4.5. indicate that the regression coefficient of Price is .341 which is

more than α (0.05). It means that Price is not significantly influence

Customer Loyalty of Onitsuka Tiger in Indonesia.

4. Table 4.5. indicate that the regression coefficient of Place is .162 which is

more than α (0.05). It means that Place is not significantly influence

Customer Loyalty of Onitsuka Tiger in Indonesia.

5. Brand Awareness is significantly affecting Customer Loyalty of Onitsuka

Tiger in Indonesia, indicated by the value of regression coefficient of Brand

Awareness is .000, which is less than α (0.05). It means that every 1 unit

increased of Brand Awareness able to increase the Customer Loyalty of

Onitsuka Tiger in Indonesia by 51.7%

6. Table 4.5. indicate that the regression coefficient of word of mouth is .154

which is more than α (0.05). It means that word of mouth is not significantly

influence Customer Loyalty of Onitsuka Tiger in Indonesia.

In conclusion, from all of the 6 independent variables which are product,

promotion, price, place, brand awareness, and word of mouth, only brand

awareness that significantly influence Customer Loyalty of Onitsuka Tiger in

Indonesia.

4.5 Testing Hypothesis

4.5.1 T-Test

T-Test is used to determine how much the influence of independent variables

(Product, Promotion, Price, Place, Brand Awareness, Word of Mouth) through the

dependent variable (Customer Loyalty). The result for the T-Test progress as

follows:

60

Table 4.6 T-Test

Model T Sig.

1

(Constant)

X1

X2

X3

X4

X5

X6

.476

1.613

1.294

.955

1.405

7.771

1.434

.635

.109

.198

.341

.162

.000

.154

Source: Processed primary data, by SPSS v.21

a. Product (X1)

Ho1 : There is no significant influence of Product towards Customer

Loyalty of Onitsuka Tiger.

Ha1 : There is a significant influence of Product towards Customer

Loyalty of Onitsuka Tiger.

By using SPSS v.21 for the variable Product (X1), researcher got the tcount =

1.613 with ttable of 1.655 which mean tcount have smaller value than ttable.

While, the tsignificance is .109 and the value bigger than significance level of

0.05. From the result, researcher can conclude that Ha1 hypothesis was

rejected and Ho1 hypothesis was accepted.

b. Promotion (X2)

Ho2 : There is no significant influence of Promotion towards Customer

Loyalty of Onitsuka Tiger.

61

Ha2 : There is significant influence of Promotion towards Customer

Loyalty of Onitsuka Tiger.

By using SPSS v.21 for the variable Promotion (X2), researcher got the tcount

= 1.294 with ttable of 1.655 which mean tcount have less value than ttable. While,

the tsignificance is .198 and the value bigger than significance level of 0.05.

From the result, researcher can conclude that Ha2 hypothesis was rejected

and Ho2 hypothesis was accepted.

c. Price (X3)

Ho3 : There is no significant influence of Price towards Customer

Loyalty of Onitsuka Tiger.

Ha3 : There is significant influence of Price towards Customer Loyalty

of Onitsuka Tiger.

By using SPSS v.21 for the variable Price (X3), researcher got the tcount =

0.955 with ttable of 1.655 which mean tcount have less value than ttable. While,

the tsignificance is .341 and the value bigger than significance level of 0.05.

From the result, researcher can conclude that Ha3 hypothesis was rejected

and Ho3 hypothesis was accepted.

d. Place (X4)

Ho4 : There is no significant influence of Place towards Customer

Loyalty of Onitsuka Tiger.

Ha4 : There is significant influence of Place towards Customer Loyalty

of Onitsuka Tiger.

By using SPSS v.21 for the variable Place (X4), researcher got the tcount =

1.405 with ttable of 1.655 which mean tcount have less value than ttable. While,

62

the tsignificance is .162 and the value bigger than significance level of 0.05.

From the result, researcher can conclude that Ha4 hypothesis was rejected

and Ho4 hypothesis was accepted.

e. Brand Awareness (X5)

Ho5 : There is no significant influences of Brand Awareness towards

Customer Loyalty of Onitsuka Tiger.

Ha5 : There is significant influence of Brand Awareness towards

Customer Loyalty.

By using SPSS v.21 for the variable Place (X4), researcher got the tcount =

7.771 with ttable of 1.655 which mean tcount have bigger value than ttable.

While, the tsignificance is .000 and the value is less than significance level of

0.05. From the result, researcher can conclude that Ha5 hypothesis was

accepted and Ho5 hypothesis was rejected.

f. Word of Mouth (X6)

Ho6 : There is no significant influence of Word of Mouth towards

Customer Loyalty of Onitsuka Tiger.

Ha6 : There is significant influence of Word of Mouth towards

Customer Loyalty of Onitsuka Tiger.

By using SPSS v.21 for the variable Word of mouth (X5), researcher got the

tcount = 1.434 with ttable of 1.655 which mean tcount have less value than ttable.

While, the tsignificance is .154 and the value bigger than significance level of

0.05. From the result, researcher can conclude that Ha6 hypothesis was

rejected and Ho6 hypothesis was accepted.

63

4.5.2 F-test

The researcher using F-Test to determine whether independent variables have

influence on dependent variable or not. If F value > F table, Ho rejected, and Ha

accepted. But, if F value < F table, then Ho accepted, and Ha rejected. The result of

F-Test (ANOVA) shown in the table below:

Table 4.7 F-test

Ho7 : Product, Promotion, Price, Place, Brand Awareness, and Word of Mouth

have no simultaneously significant influence towards Customer Loyalty of

Onitsuka Tiger.

Ha7 : Product, Promotion, Price, Place, Brand Awareness, and Word of Mouth

have simultaneously significant influence towards Customer Loyalty of

Onitsuka Tiger.

The result of this F-test shows the Fcount = 66.124 with a significance level of .000.

The Fcount with value 66.124 is compared with Ftable of 1.35 and it means that Fcount

has bigger Ftable. Furthermore, compare to 0.05 of p-value, the number of

probabilities in this test is 0.000 which is less than 0.05. Therefore, the researcher

ANOVAa

Model Sum of Squares Df Mean Square F Sig.

1

Regression 2024.426 6 337.404 66.124 .000b

Residual 663.340 130 5.103

Total 2687.766 136

Source: Processed Primary data, by SPSS v.21

64

conclude Ho7 is rejected and Ha7 accepted. It means that Product, Promotion, Price,

Place, Brand Awareness, and Word of Mouth have simultaneously significant

influence towards Customer Loyalty of Onitsuka Tiger.

4.5.3 Coefficient of Correlation (R) and Coefficient of Determination (R2)

Table 4.8 Coefficient of Correlation (R) and Coefficient of Determination

(R2)

Model Summaryb

Model R R square Adjusted R

square

Std. error of

the estimate

1 .866a .750 .738 .51153963

Source: Processed Primary data, by SPSS v.21

Results calculated using SPSS can be seen that the Adjusted R square value of 0.738

obtained. The 73.8% means that customer loyalty can be influenced by the variable

product, promotion, price, place, brand awareness, word of mouth while the rest is

26.2% of customer loyalty is influenced by other variables which are not developed

in this research.

4.6 Interpretation Results

4.6.1 The Impact of Product towards Customer Loyalty

Based on the analysis result on table 4.6., the Probability value of X1 (Product) is

0.109 which has higher value than the significant value of 0.05. It means that

Product has no significant influence towards Customer Loyalty on Onitsuka Tiger

65

in Indonesia. It can be interpreted that even the quality, variant of color, design, and

size variety of Onitsuka Tiger products cannot guarantee to have a loyal customer.

Another Research titled “Impact of marketing mix towards Customer Loyalty that

used digital printing PT. Elang Perkasa Langgeng” by Adrian Yuwono and Prof.

Dr. Hatane Semuel, MS. (2015) supported this research.

4.6.2 The Impact of Promotion towards Customer Loyalty

Based on the analysis result on table 4.6., the Probability value of X1 (Promotion)

is 0.198 which has higher value than the significant value of 0.05. It means that

Promotion has no significant influence towards Customer Loyalty on Onitsuka

Tiger in Indonesia. It can be interpreted that even the promotion in social media,

ads, and many more cannot guarantee customer to be loyal. Another Research titled

“Impact of marketing mix towards Customer Loyalty on Fresh Mart Bahu mall

Manado” by Christian A.D. Selang (2013) supported this research.

4.6.3 The Impact of Price towards Customer Loyalty

Based on the analysis result on table 4.6., the Probability value of X1 (Price) is

0.341 which has higher value than the significant value of 0.05. It means that Price

has no significant influence towards Customer Loyalty on Onitsuka Tiger in

Indonesia. It can be interpreted that even discount, membership, and many more

cannot guarantee customer to be loyal. Another Research titled “Impact of

marketing mix towards Customer Loyalty that used digital printing PT. Elang

Perkasa Langgeng” by Adrian Yuwono and Prof. Dr. Hatane Semuel, MS. (2015)

supported this research.

66

4.6.4 The Impact of Place towards Customer Loyalty

Based on the analysis result on table 4.6., the Probability value of X1 (Place) is

0.162 which has higher value than the significant value of 0.05. It means that Place

has no significant influence towards Customer Loyalty on Onitsuka Tiger in

Indonesia. It can be interpreted that even design, positioning, of Onitsuka Tiger

stores in Indonesia cannot guarantee customer to be loyal. Another Research titled

“Impact of marketing mix towards Customer Loyalty that used digital printing PT.

Elang Perkasa Langgeng” by Adrian Yuwono and Prof. Dr. Hatane Semuel, MS.

(2015) supported this research.

4.6.5 The Impact of Brand Awareness towards Customer Loyalty

Based on the analysis result on table 4.6., the Probability value of X5 (Brand

Awareness) is 0.000 which has lower value than the significant value of 0.05. It

means that Brand Awareness has significant influence towards Customer Loyalty

on Onitsuka Tiger in Indonesia. It can be interpreted that Onitsuka Tiger as the

newcomer to Indonesia may try to start building their brand awareness because

when people start to be aware of a brand, they will start to be a loyal customers.

Another research titled “The Impact of Brand Awareness on Customer Loyalty

towards Igloo Ice Cream: A Study on Dhaka University Students.” By Haque, M.

S. S., Bappy, T. A., & Arifuzzaman, M. (2018) supported this research.

4.6.6 The Impact of Word of Mouth towards Customer Loyalty

Based on the analysis result on table 4.6., the Probability value of X6 (Word of

Mouth) is 0.154 which has higher value than the significant value of 0.05. It means

67

that Word of Mouth has no significant influence towards Customer Loyalty on

Onitsuka Tiger in Indonesia. However, Another Research titled “The impact of

customer relation and word of mouth towards customer loyalty bank customers

BPD Bali” by Ida Bagus Indra Saputra, Dr. Alit Suryani, and Drs. I Ketut Nurcahya

(2015) is not corresponding with the result that the researcher gets which stated that

Word of Mouth has significant influence towards Customer Loyalty.

68

CHAPTER V

CONCLUSIONS AND RECOMMENDATIONS

5.1 Conclusion

The main purpose of this research is to find if there any impact of product,

promotion, price, place, brand awareness, and word of mouth towards customer

loyalty of Onitsuka Tiger in Indonesia partially and simultaneously. Therefore, the

researcher has conducted a statistical testing such as classical data assumption and

multiple linear regression. The researcher’s tool used to collect the primary data

was questionnaire and was spread to 137 respondents around Indonesia to get

primary data. As shown by the classical data assumption, the data that was gathered

from the questionnaire is normally distributed and has been proved that there is no

multicollinearity and heteroscedasticity in it. Then, all of the data was being

processed through multiple regression. Therefore, according to the result on chapter

IV, the conclusion drawn by the researcher was as follow:

1. There is no significant influence of product towards customer loyalty on

Onitsuka Tiger in Indonesia. From the chapter IV, it is proven by the T-test

result which stated that there is no significant impact between product to

customer loyalty. It means that the product of Onitsuka Tiger is not the main

reason for the customer to be loyal.

2. There is no significant influence of promotion towards customer loyalty on

Onitsuka Tiger in Indonesia. From the chapter IV, it is been proved by the

T-test result which stated that there is no significant impact between

69

promotion to customer loyalty. It means that the promotion of Onitsuka

Tiger is not the main reason for the customer to be loyal.

3. There is no significant influence of price towards customer loyalty on

Onitsuka Tiger in Indonesia. From the chapter IV, it is proven by the T-test

result which stated that there is no significant impact between price to

customer loyalty. It means that the price, which is high in Indonesia

compared to Onitsuka Tiger in other countries, of Onitsuka Tiger is not the

main reason for the customer to be loyal.

4. There is no significant influence of place towards customer loyalty on

Onitsuka Tiger in Indonesia. From the chapter IV, it is proven by the T-test

result which stated that there is no significant impact between place to

customer loyalty. It means that the place, the store location of Onitsuka

Tiger is not the main reason for the customer to be loyal.

5. There is significant influence of brand awareness towards customer loyalty

on Onitsuka Tiger in Indonesia. From the chapter IV, it is proven by the T-

test result which stated that there is significant impact between brand

awareness to customer loyalty. As one of the oldest footwear brands from

Japan, Onitsuka Tiger already known worldwide especially in Indonesia. It

means that when the customers see the brand or logo of Onitsuka Tiger, they

are familiar with it and because of that they want to buy the products of

Onitsuka Tiger and stay loyal to it.

6. There is no significant influence of word of mouth towards customer loyalty

on Onitsuka Tiger in Indonesia. From the chapter IV, it is proven by the T-

test result which stated that there is no significant impact between Word of

70

Mouth to customer loyalty. It means that the product of Onitsuka Tiger is

not the main reason for the customer to be loyal.

7. There is a simultaneous significant influence of product, promotion, price,

place, brand awareness, and word of mouth towards customer loyalty.

5.2 Recommendations

5.2.1 Onitsuka Tiger

Based on the result of this research, only one out of six independent variables which

is Brand Awareness that generated significant impact result towards customer

loyalty on Onitsuka Tiger in Indonesia. Therefore, this research could be a feedback

for Onitsuka Tiger Indonesia to more focused on brand awareness because

according to T-test, Brand Awareness has significant influence to make Indonesian

customers to be loyal with Onitsuka Tiger. The more customers that loyal to

Onitsuka Tiger, it means that more surplus for Onitsuka Tiger Indonesia

5.2.2 Future Research

For the researchers that will do this kind of research, they should do the research

with different variables and/or focus. If other researchers want to research about

Customer Loyalty, then they should choose other variables besides Product,

Promotion, Price, Place, Brand Awareness, and last but not least Word of Mouth.

Furthermore, the other researcher also can have different focus regarding the

Customer Loyalty topic such as investigating influence of Brand Awareness

towards Customer Loyalty. It will better to get wider population to get more

accurate result of factor affecting Customer Loyalty.

71

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APPENDICES

Appendix 1

Questionnaire

Impact of Marketing mix, Word of mouth, and Brand awareness towards

Customer loyalty on Onitsuka Tiger In Indonesia

Halo, perkenalkan nama saya Giovanni Macawalang. Saya seorang mahasiswa

bisnis internasional, prodi manajemen di Universitas Presiden angkatan 2015. Saat

ini saya sedang mengerjakan penelitian saya untuk mencapai gelar sarjana saya.

Penelitian ini dilakukan untuk mendukung penelitian saya tentang pengaruh

Marketing mix(harga, tempat, produk, promosi), word of mouth, dan brand

awareness terhadap customer loyalty untuk Onitsuka Tiger. Saya akan meminta

partisipasi Anda dalam mengisi kuesioner ini untuk membantu saya mengumpulkan

data penelitian. semua jawaban Anda bersifat rahasia dan hanya akan digunakan

untuk tujuan penelitian. Terakhir, saya ingin mengucapkan terima kasih karena

telah meluangkan waktu untuk menyelesaikan survei ini.

77

Onitsuka Tiger

Onitsuka Tiger adalah salah satu perusahaan sepatu tertua di Jepang, menelusuri

sejarahnya kembali ke pembentukan Onitsuka Co. Ltd. Pada tahun 1949 ketika

mantan perwira militer, 32 tahun, Kihachiro Onitsuka memulai perusahaannya

dengan harapan meningkatkan harga diri pemuda pascaperang melalui atletik.

78

Profil responden

79

Marketing mix (price, pace, product, promotion)

Product

80

Promotion

81

Price

82

Place

83

Brand Awareness

84

Word of Mouth

85

Customer Loyalty

86

Appendix 2

Data Respondents

Product and Promotion

87

88

89

Price, Place, and Brand Awareness

90

91

92

Word of Mouth and Customer Loyalty

93

94

95

Appendix 3

SPSS Results

Pre-test

Validity Test

PRODUCT(X1)

96

PROMOTION(X2)

97

PRICE(X3)

98

PLACE(X4)

Correlations

Place1 Place2 Place3 Place4 Place5 Total4

Place1

Pearson Correlation 1 .740** .493** .171 .289* .743**

Sig. (2-tailed) .000 .000 .232 .040 .000

N 51 51 51 51 51 51

Place2

Pearson Correlation .740** 1 .573** .404** .335* .822**

Sig. (2-tailed) .000 .000 .003 .016 .000

N 51 51 51 51 51 51

Place3

Pearson Correlation .493** .573** 1 .314* .360** .735**

Sig. (2-tailed) .000 .000 .025 .009 .000

N 51 51 51 51 51 51

Place4

Pearson Correlation .171 .404** .314* 1 .757** .692**

Sig. (2-tailed) .232 .003 .025 .000 .000

N 51 51 51 51 51 51

Place5

Pearson Correlation .289* .335* .360** .757** 1 .732**

Sig. (2-tailed) .040 .016 .009 .000 .000

N 51 51 51 51 51 51

Total4

Pearson Correlation .743** .822** .735** .692** .732** 1

Sig. (2-tailed) .000 .000 .000 .000 .000

N 51 51 51 51 51 51

**. Correlation is significant at the 0.01 level (2-tailed).

*. Correlation is significant at the 0.05 level (2-tailed).

99

BRAND AWARENESS(X5)

Correlations

BA1 BA2 BA3 BA4 Total5

BA1

Pearson Correlation 1 .543** .583** .669** .787**

Sig. (2-tailed) .000 .000 .000 .000

N 51 51 51 51 51

BA2

Pearson Correlation .543** 1 .756** .651** .864**

Sig. (2-tailed) .000 .000 .000 .000

N 51 51 51 51 51

BA3

Pearson Correlation .583** .756** 1 .733** .901**

Sig. (2-tailed) .000 .000 .000 .000

N 51 51 51 51 51

BA4

Pearson Correlation .669** .651** .733** 1 .890**

Sig. (2-tailed) .000 .000 .000 .000

N 51 51 51 51 51

Total5

Pearson Correlation .787** .864** .901** .890** 1

Sig. (2-tailed) .000 .000 .000 .000

N 51 51 51 51 51

**. Correlation is significant at the 0.01 level (2-tailed).

100

WORD OF MOUTH (X6)

Correlations

WOM1 WOM2 WOM3 WOM4 Total6

WOM1

Pearson Correlation 1 .685** .450** .217 .749**

Sig. (2-tailed) .000 .001 .127 .000

N 51 51 51 51 51

WOM2

Pearson Correlation .685** 1 .485** .427** .838**

Sig. (2-tailed) .000 .000 .002 .000

N 51 51 51 51 51

WOM3

Pearson Correlation .450** .485** 1 .597** .802**

Sig. (2-tailed) .001 .000 .000 .000

N 51 51 51 51 51

WOM4

Pearson Correlation .217 .427** .597** 1 .729**

Sig. (2-tailed) .127 .002 .000 .000

N 51 51 51 51 51

Total6

Pearson Correlation .749** .838** .802** .729** 1

Sig. (2-tailed) .000 .000 .000 .000

N 51 51 51 51 51

**. Correlation is significant at the 0.01 level (2-tailed).

101

CUSTOMER LOYALTY (Y)

Correlations

CL1 CL2 CL3 CL4 CL5 Total7

CL1

Pearson Correlation 1 .451** .233 .669** .692** .776**

Sig. (2-tailed) .001 .100 .000 .000 .000

N 51 51 51 51 51 51

CL2

Pearson Correlation .451** 1 .623** .456** .354* .732**

Sig. (2-tailed) .001 .000 .001 .011 .000

N 51 51 51 51 51 51

CL3

Pearson Correlation .233 .623** 1 .480** .371** .687**

Sig. (2-tailed) .100 .000 .000 .007 .000

N 51 51 51 51 51 51

CL4

Pearson Correlation .669** .456** .480** 1 .839** .883**

Sig. (2-tailed) .000 .001 .000 .000 .000

N 51 51 51 51 51 51

CL5

Pearson Correlation .692** .354* .371** .839** 1 .837**

Sig. (2-tailed) .000 .011 .007 .000 .000

N 51 51 51 51 51 51

Total7

Pearson Correlation .776** .732** .687** .883** .837** 1

Sig. (2-tailed) .000 .000 .000 .000 .000

N 51 51 51 51 51 51

**. Correlation is significant at the 0.01 level (2-tailed).

*. Correlation is significant at the 0.05 level (2-tailed).

102

RELIABILITY TEST

1. PRODUCT(X1)

2. PROMOTION(X2)

3. PRICE(X3)

4. PLACE(X4)

5. BRAND AWARENESS(X5)

103

6. WORD OF MOUTH(X6)

7. CUSTOMER LOYALTY(Y)

104

Appendix 4

Plagiarism Document

105

106

107

108

109

110

111

Appendix 5

Table

R-table

112

T-table

F-table