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CONSUMER’S PERCEIVED VALUE AND BUYING BEHAVIOR OF
              STORE BRANDS: AN EMPIRICAL INVESTIGATION

                     Wahyu Adhi Nugroho1 & Luki Safitri Wihandoyo2


                                         ABSTRACT


Buying processes in grocery shopping involve many factors relating to the final decision of the
consumers and those aspects influence Consumer Perceived Value and their buying behavior
on deciding which type of product they would buy. Store brands existence as an option in
today modern grocery shopping have an important position in retail strategy nowadays and
the role have increased during the development of modern grocery stores in Indonesia.
Therefore, understanding store brand buyer behavior is an essential topic for marketers and
researchers.
Demographic Profiling, Mean Value Analysis, Crosstabs Analysis, Reliability Analysis,
Factor Analysis – Principal Component Analysis (Varimax Method), Multiple Linear
Regression are used in this research.
Dominating, significant variables revealed, pattern of relationship showed.
In overall, the findings shows that consumer’s perceived value contribute positively to their
perceptions of store brands and the better knowledge on the aspects of store brand products
due to their past experience in purchasing the items lead to positive perceptions which
eventually will lead to good possibility for them in re-purchasing store brands products in the
future.

Keywords: store brand, consumer perceived value (CPV), buying behavior




1, 2
   BINUS BUSINESS SCHOOL, BINUS UNIVERSITY, JWC Campus, Jl. Hang Lekir I No. 6, Kebayoran Baru,
South Jakarta 12120, wahyu@gmail.com.




216                         Journal of Business Strategy and Execution Vol. 1 No.2 June 2009: 216 - 238
INTRODUCTION


         Understanding Consumer’s Perceived Values place important part in winning
customers over a product/service and became the major motive in choosing the problem. To
develop and improve a product, companies must know what are the factors that consumers
think as important to dig up information on how they think and perceive variables over a
product before considering in purchasing it. CPV and buying behavior also reflect the
performance of provider of the goods deliver their products.
         The instruments that will be investigated in the paper cover the relationships among
dimensions of CPV and buying behavior, and their final decisions based on the variables in
the measurement constructs (consist of recommendations to relatives, willingness to buy store
brands items over national brands, and the possibility in future purchasing). Although this
paper is the replication of a journal, further works are designed to enhance the results of the
analysis. The improvements cover more method of analyses to give better view on the actual
consumer’s perceived value and their buying behavior toward store brands (for example: in
the research, demographic factor will be investigated to find out whether it is significantly
related toward the problem or not, etc.) and supported with an open-ended question of
suggestion and/or critics towards the groceries in the concern of store brands.
         Establishing a positive CPV also require strong brand image, which is crucial for any
retailer, especially since more shoppers become more selective in making buying decisions
when they are inside a store staring at a shelf full of items. The same applies to its approach to
store brands. In Indonesia, the observed hypermarkets (Carrefour and Giant) and supermarket
(Hero) have its selection of in-store brands are marked with the retailer's name, small print
stating distribution information, and packaging design.

         The aim of this study is to provide understanding on the subject of Consumers
Perceived Values and buying behavior towards store brands products in the perspective of
Indonesia’s consumers, using measurement constructs of CPV and buying behavior. Important
demographic factors, such as: income levels and group of ages will be investigated to seek its
relationships towards the final decision of the buyers. In general, this paper outlines aspiration
in providing sufficient information on today’s stores brands CPV, focused in Indonesia as
market study. Moreover, as a focus in researching, using forms of consumer’s involvement,
brand loyalty, price perception, quality perception, familiarity, and perceived risks as well as
demographic factors, store brands attributes will be studied to dig up information on how they
make a decision based on CPV variables before they buy store brands items.


                                    LITERATURE REVIEW


1. Method of Buying Behavior
        Zeithaml, Berry and Parasuraman (1996) suggested that the evidence of impact should
be detectable by relating products quality to retention of customers. Consumer’s purchasing
behavior can be viewed as a signal of retention or defection towards the products. When there
is no re-purchasing from consumers, the acquiring cost, which is the cost of getting new




Consumer’s Perceived Value and Buying … (Wahyu Adhi Nugroho & Luki Safitri Wihandoyo)         217
customers, will be costly, rather than retaining the satisfied current customers because their
attraction involves advertising and promoting, and other promotional costs.
2. Method of CPV
         An extensive theory of CPV was developed by Sheth, Newman, and Gross (1991),
who study on how to measuring consumer perceived value by observing consumer choice as a
“function of multiple 'consumption value' dimensions and that these dimensions make varying
contributions in different choice situations.”
They search whether consumer have the decision to buy level (buy or not buy), choosing the
product level (product type A or product type B), or at brand level (brand A or brand B)
through those five identified values.
3. Further Development on Measuring the Consumer Perceived Value and Buying
     Behavior, a Multidimensional Construct of Perceived Values
         After Sheth, Newman, and Gross introduced the underlined multidimensional
construct of CPV, Sweeney (1996) investigates the measurement of perceived value construct
through method named as PERVAL model, emphasizes not only on the multidimensional
construct, but more on the non-physical value, a situation in which perceived value is critical
to the choice in the buying process.
4. Reviews of Store Brands Previous Studies from Myers (1967) to Sudhir and Taluktar
     (2004)

                  Table 1. Major Researches for Store Brands (1967-1997)

 YEAR       RESEARCHER                                       STUDY
  1967           Myers                   Personality characteristics of store brand buyers
  1965       Frank and Boyd
  1971            Coe                    Store brand buyers in socioeconomic variables
  1978           Murphy
  1974          Bettman                   Information processing of store brand buyers
  1981           Bellizzi
                                               Shopping style of store brand buyers
  1982        Cunningham
  1987      Salmon and Cmar
  1992           Deveny
                                             Quality perception of store brand buyers
  1994          Wilensky
  1997           Baltas

                  Table 2. Major Researches for Store Brands (2000-2004)

 YEAR          RESEARCHER                                    STUDY
                                               Building loyalty through store brands
  2000         Corstjens and Lal
                                       The relationship between store brand and store loyalty
  2001      Aliawadi, Neslin, and
                                       The relationship between store brand and store loyalty
                   Gedenk
  2002      Garretson, Fisher, and
                                                 Buyers attitudes towards store brands
                   Burton
                                                 Quality perception of store brands and
  2003           Sethuraman
                                                    store brand purchase intention



218                         Journal of Business Strategy and Execution Vol. 1 No.2 June 2009: 216 - 238
Quality perception and Price perception
  2003              Stambaugh
                                                          on store brands buyers
  2004       Sudhir and Talukdar
                                                    Building loyalty through store brands
  2004      Bonfrer and Chintagunta



                                THEORITICAL FRAMEWORK




                             Figure 1. Theoretical Framework Design

        This paper proposed a structured framework that composed of different types of
values that buyers experience in the buying processes. The improvements and modification of
previous studies will be applied in this thesis. 27 sub-values of the six major value structures
are proposed based on the prior major researches on CPV and the buying behavior
measurement models from Theory of Consumption Values by Sheth, Newman, and Gross
(1991), Buying Behavior Model by Zeithaml, Berry and Parasuraman (1997),, to the
development of PERVAL measurement models by Sweeney and Soutar (2001).




Consumer’s Perceived Value and Buying … (Wahyu Adhi Nugroho & Luki Safitri Wihandoyo)       219
HYPOTHESIS DEVELOPMENT


         In the research, groups of hypotheses will be situated as proposition for implementing
the theoretical framework. Those hypotheses are:
1. Ho: There is no relationship between income level and willingness in buying store brands
     products over national brands.
2. H1: There is a relationship between income level and willingness in buying store brands
     products over national brands.
3. Ho: There is no relationship between age group and recommendation of store brands
     products.
4. H1: There is a relationship between age group and recommendation of store brands
     products.
5. Ho: There is no relationship between income level and probability to consider buying store
     brands products in the future.
6. H1: There is a relationship between income level and probability to consider buying store
     brands products in the future.
7. Hypotheses 1 – 3 related to the demographic aspects of store brands buyers and their final
     decisions toward the products.
8. Ho: Aspects in the new measurement constructs of CPV and buying behavior of store
     brands buyers do not have significant influence towards recommendation of store brands
     products.
9. H1: Aspects in the new measurement constructs of CPV and buying behavior of store
     brands buyers have significant influence towards recommendation of store brands
     products.
10. Ho: Aspects in the new measurement constructs of CPV and buying behavior of store
     brands buyers do not have significant influence towards willingness to purchase store
     brand grocery products over national brands.
11. H1: Aspects in the new measurement constructs of CPV and buying behavior of store
     brands buyers have significant influence towards willingness to purchase store brand
     grocery products over national brands.
12. Ho: Aspects in the new measurement constructs of CPV and buying behavior of store
     brands buyers do not have significant influence towards probability to consider buying
     store brand products in the future.
13. H1: Aspects in the new measurement constructs of CPV and buying behavior of store
     brands buyers have significant influence towards probability to consider buying store
     brand products in the future.
14. Ho: Partially, there is no aspect in the new measurement constructs of CPV and buying
     behavior of store brands buyers that has significant influence towards recommendation of
     store brands products.
15. H1: Partially, there are aspects in the new measurement constructs of CPV and buying
     behavior of store brands buyers that has significant influence towards recommendation of
     store brands products.
16. Ho: Partially, there is no aspect in the new measurement constructs of CPV and buying
     behavior of store brands buyers that has significant influence towards willingness to
     purchase store brand grocery products over national brands.




220                         Journal of Business Strategy and Execution Vol. 1 No.2 June 2009: 216 - 238
17. H1: Partially, there are aspects in the new measurement constructs of CPV and buying
    behavior of store brands buyers has significant influence towards willingness to purchase
    store brand grocery products over national brands.
18. Ho: Partially, there is no aspect in the new measurement constructs of CPV and buying
    behavior of store brands buyers that has significant influence towards probability to
    consider buying store brand products in the future.
19. H1: Partially, there are aspects in the new measurement constructs of CPV and buying
    behavior of store brands buyers that has significant influence towards probability to
    consider buying store brand products in the future.


                         DATA AND RESEARCH METHODOLOGY


        Applied Research questions in this thesis will be presented in Indonesian language
considering the entire random samples that carry out the task of their frequent shopping in the
supermarkets and/or hypermarkets understand Bahasa Indonesia as the language.
Period of distribution          : 28th May 2008 - 14th June 2008
Scope for Questionnaires        : DKI Jakarta
Total questionnaire             : 300 questionnaires
Target respondents              : grocery shoppers
Sampling method                 : Random sampling method

Respondents Demographic Profile of store brand buyers
        The questionnaire results were analyzed using SPSS version 16.0. The first method of
analyzing the gathered data is grouping demographic factors, which are: gender, age group,
education level, income level (net income per month), occupation, and the number of family
member, through Relative Frequency.

Mean Value Analysis
        Mean Value Analysis in this research has purpose to observe the tendency of
respondents’ responses in filling the questionnaire from 27 questions related to the
measurement of CPV and buying behavior of store brands purchasers. Likert Scales in the
questionnaire were based on values of 1 (“Strongly Disagree”), 2 (“Disagree”), 3 (“Neither
Disagree nor Agree” or “Neutral”), 4 (“Agree”), and the highest point is 5 (“Strongly Agree”).

Crosstabs Analysis
         Crosstabs Analysis is used to show distribution of two variables in cross
tabulation/table. Chi-Square Test is the important aspect in Crosstab Analysis, with purpose to
investigate whether there is a relationship between column and row in cross tabulation. Chi-
Square Test will be performed under sig. (2-sided) < 0.05 to reject Ho.

Factor Analysis of CPV and buying behavior of store brand buyer
The primary objectives of an FA are to determine:
1. The number of common factors influencing a set of measures.
2. The strength of the relationship between each factor and each observed measure.
Some common uses of FA are to: (www.stat-help.com)



Consumer’s Perceived Value and Buying … (Wahyu Adhi Nugroho & Luki Safitri Wihandoyo)      221
•    Identify the nature of the constructs underlying responses in a specific content
            area.
         • Determine what sets of items “hang together” in a questionnaire.
         • Demonstrate the dimensionality of a measurement scale. Researchers often wish
            to develop scales that respond to a single characteristic.
         • Determine what features are most important when classifying a group of items.
         • Generate “factor scores” representing values of the underlying constructs for use
            in other analyses.
The principal components’ method for initial factor extraction with the criterion eigenvalue
greater than 1 and Varimax method of rotation was applied the store brand shopping behavior
in order to extract the dimensions based on the construct. “Varimax rotation method
minimizes the complexity of the components by making the large loading larger and the small
loadings smaller within each component.” (Leech, et.al, p.82)

Reliability Analysis
         Reliability can reflect the internal consistency of the indicators measuring a given
factor. Reliabilities for all constructs exceed or close to 0.7 will be interpreted as a satisfying
general requirement of reliability for research instruments.

Frequencies Distribution of Customers’ Responses
         The main purpose is to support Factor Analysis and Principal Component Analysis
results by showing dominate response(s) in a particular variable.

Multiple Linear Regression
        In regression analysis we fit the predictors with aspects in the CPV measurement
constructs to investigate the dependent variables (recommendation of store brands, willingness
to buy store brands over national brands, and probability of buying store brands in the future).

Suggestions to Grocery Stores for Improvement
         Respondents can participate in giving their suggestions for the future improvement of
store brands existence in Indonesia.


                              FINDINGS AND DISCUSSIONS


    Respondents participated in this research are female (214 people; 71.3%) and male (86
people, 28.7%). Most respondents are from group age of 25-34 years old (108 people, 36%),
followed by the group age of 35-44 years old for 26.7%. Number of respondents with age
group of < 25 years old and > 44 years old do not vary much in the figure.
Dominating class in this research came from people with Bachelor degree (163 people, 54.3%)
as their current education level. People with Diploma degree and High school shared the
slightly equal distribution with 18% and 18.7%.
Most respondents (105 people) earn Rp 2-5 million in their monthly nett income, followed by
the group of respondents with nett income of Rp 5-10 million (22%) and less than Rp 2
million (21.7%). 3 respondents (1%) left the subject empty.




222                           Journal of Business Strategy and Execution Vol. 1 No.2 June 2009: 216 - 238
Most respondents (180 people) have their career as Employee (60%), followed by those with
Housewife as occupation (14.7%) and Professional workers (14%).
Most respondents live in family (91 people) consistof 4 people (31.3%), followed by the group
of family 5 people and more which accounted for 30.3%.
         Mean Value Analysis in this research has purpose to observe the tendency of
respondents’ responses in filling the questionnaire from 27 questions related to the
measurement of CPV and buying behavior of store brands purchasers. Variable with the
lowest Mean Value is “The purchase of store brand grocery items is risky because the quality
of store brands is inferior”, meaning that most respondents disagree (answered strongly
disagree/disagree) with the statement, or in other words, most of them shared the common
view to not consider purchasing store brand as risky because the inferior quality of the items.
The highest Mean value is “Product that I buy from grocery store matters a lot to me”,
meaning that most respondents have the most agreed opinion with the statement.
Crosstabs Analysis is used to show distribution of two variables in cross tabulation/table.
There is no relationship between willingness of buying store brands compared to national
brands and their income level. There is also a relationship between recommendation of store
brand grocery product to friends and their age group; group age of < 25 years old and > 40
years old have the tendency to recommend store brands to their friends and relatives. And
furthermore, there is a relationship between probability to consider buying store brand items in
the future and income level. Respondents with monthly Nett income of < Rp 2 million and Rp
2-5 million have high percentage in store brands items future repeated purchases probability.
         Using Factor Analysis using Principal Component Analysis, the variables after
rotation are diversified into 9 components. After rotation, the CPV dimensions which consist
in 27 variables and initially grouped in 6 factors transforming to 9 factors.

                                Table 3. Rotated Component Matrixa
                                                                    Component
                                               1      2     3      4      5      6      7   8   9
Usually, I care a lot about which
                                              .763 .110 .113 -.006 .022 .037 -.125 .105 .143
particular brand I buy
I am willing to make an effort to search
                                              .756 -.007 .169 -.054 .134 -.117 -.040 .090 .044
my favorite brand
I prefer one/certain brand of most
                                              .717 -.123 .107 .021 .050 -.124 .354 .007 -.055
products I buy
I prefer to always shop at one store          .660 .159 -.021 .139 .190 .118 -.130 .044 -.061
I buy store brands                            .095 .788 .013 -.144 -.016 .164 .115 -.078 -.053
My shopping cart contains store brands
                                             -.024 .775 .007 -.100 .066 .062 .034 .024 -.150
for several products
I am very familiar with the various
store brand grocery items available in        .096 .733 .003 -.061 -.055 -.133 .117 .089 .095
the market




Consumer’s Perceived Value and Buying … (Wahyu Adhi Nugroho & Luki Safitri Wihandoyo)           223
Given the potential financial expenses
associated with purchasing store
branded grocery products, overall          -.092 .448 .053 .268 .278 .390 -.074 -.256 .038
financial risk is associated with
purchasing such products is substantial
People think of me as a good source of
                                           .063 .021 .825 .118 .005 .012 .104 .067 -.031
shopping information
I am somewhat of an expert when it
                                           .101 -.053 .732 .001 .152 -.008 .130 -.069 -.148
comes to shopping
I enjoy giving people tips on shopping     .112 .264 .552 .001 -.126 .005 -.199 .301 .021
Products that I buy from grocery store
                                           .150 -.075 .494 .032 .260 .073 -.065 -.013 .282
interests me a lot
The purchase of store brand grocery
items is risky because the quality of      .063 -.089 .151 .727 .149 -.067 -.312 .046 .014
store brands is inferior
Store brand grocery items are appear to
                                           .152 -.047 -.073 .679 -.292 .070 .210 -.179 -.050
be a bargain
Considering the cost of grocery
products, for me to purchase store         -.146 -.199 .074 .662 .228 .086 -.030 .075 .108
brands would be very risky
There are only minor variations among
brands of grocery products in terms of     .085 .020 .000 .420 .096 -.259 .002 .173 .405
quality
Product that I buy from grocery store
                                           .216 .089 .042 .077 .760 .061 -.037 .047 .111
are very important
Product that I buy from grocery store
                                           .157 -.064 .129 .068 .749 -.149 .260 .008 -.077
matters a lot to me
All brands of grocery products are
                                           -.003 -.001 -.054 .038 -.039 .828 .085 .099 .075
basically the same in quality
I do not think there are any significant
differences among different brands of      -.021 .088 .099 -.066 -.036 .791 .211 .008 -.123
grocery products in term of quality
Store brand grocery items offer great
                                           .022 .117 .156 .081 .034 .126 .770 .047 .099
value for money
Store brand grocery products do not
                                           -.093 .110 -.182 -.320 .099 .183 .517 .017 -.083
vary a lot in term of quality
Store brand grocery items are
                                           -.134 .247 .116 -.180 .301 .261 .453 .206 -.006
considered to be good buy
In grocery products, It is true that you
                                           .146 -.032 .020 -.020 -.038 .089 .063 .781 .185
get the quality that you paid for
I read product labels in detail before I
                                           .080 -.021 .103 .018 .434 -.032 .049 .539 -.015
buy grocery products




224                         Journal of Business Strategy and Execution Vol. 1 No.2 June 2009: 216 - 238
In grocery product, the higher the price
                                         .055 -.011 -.008 .153 .030 .050 .090 .277 .763
for a brand, the higher the quality
There is a great deal of difference in
overall quality between nationally
                                         .037 .166 .083 .151 .042 .066 .070 .481 -.618
advertised and store brand grocery
items
Extraction Method: Principal Component Analysis.
 Rotation Method: Varimax with Kaiser Normalization.
a. Rotation converged in 9 iterations.

         Based on the result, variables with high loadings in the same factor indicate the
significant correlations among other item(s); therefore the next step is to create new labels
according to their shared characteristics/attributes acquired from the items in the Principal
Component Analysis.
         Factor 1 will be labeled as “Brand Preferences”
                                                                                         1
         Usually, I care a lot about which particular brand I buy                         .763
         I am willing to make an effort to search my favorite brand                       .756
         I prefer one/certain brand of most products I buy                                .717
         I prefer to always shop at one store                                             .660
        Factor 2 will be labeled as: “Familiarity towards Store Brands”
                                                                                          2
         I buy store brands                                                               .788
         My shopping cart contains store brands for several products                      .775
         I am very familiar with the various store brand grocery items available in the
                                                                                          .733
         market
         Given the potential financial expenses associated with purchasing store
         branded grocery products, overall financial risk is associated with              .448
         purchasing such products is substantial
        Factor 3 will be labeled as: “Shopping Interest and Knowledge Sharing”
                                                                                          3
          People think of me as a good source of shopping information                     .825
          I am somewhat of an expert when it comes to shopping                            .732
          I enjoy giving people tips on shopping                                          .552
          Products that I buy from grocery store interests me a lot                       .494

        Factor 4 will be labeled as: “Risk Perception”
                                                                                          4
          The purchase of store brand grocery items is risky because the quality of
                                                                                          .727
          store brands is inferior




Consumer’s Perceived Value and Buying … (Wahyu Adhi Nugroho & Luki Safitri Wihandoyo)         225
Store brand grocery items are appear to be a bargain                                      .679
         Considering the cost of grocery products, for me to purchase store brands
                                                                                                   .662
         would be very risky
         There are only minor variations among brands of grocery products in terms
                                                                                                   .420
         of quality
        Factor 5 will be labeled as: “Product Importance”
                                                                                                   5
         Product that I buy from grocery store are very important                                  .760
         Product that I buy from grocery store matters a lot to me                                 .749
        Factor 6 will be labeled as: “Quality Perception”
                                                                                                   6
         All brands of grocery products are basically the same in quality                          .828
         I do not think there are any significant differences among different brands of
                                                                                                   .791
         grocery products in term of quality
        Factor 7 will be labeled as: “Store Brand Value for Money”
                                                                                                   7
         Store brand grocery items offer great value for money                                     .770
         Store brand grocery products do not vary a lot in term of quality                         .517
         Store brand grocery items are considered to be good buy                                   .453
        Factor 8 will be labeled as: “Involvement”
                                                                                                   8
         In grocery products, It is true that you get the quality that you paid for                .781
         I read product labels in detail before I buy grocery products                             .539
        Factor 9 will be labeled as: “Store Brands vs. National Brands Perception”
                                                                                                   9
         In grocery product, the higher the price for a brand, the higher the quality              .763
         There is a great deal of difference in overall quality between nationally
                                                                                                  -.618
         advertised and store brand grocery items


        In Multiple Linear Regression, there are two aspects in the measurement constructs
that have significant relationship towards the outcome (recommendation), which are:
“Familiarity towards Store Brands” and “Shopping Interest and Knowledge Sharing”. It
seemed that grocery shoppers, especially store brands buyers, whom willing to give
recommendation of the products they preferred are familiar with the existence of store branded
products available in the market and have interest in grocery shopping.
        The result also shows that there are two aspects in the measurement constructs that
have significant relationship towards the outcome (willingness to buy store branded products
than national brands), which are: “Familiarity towards Store Brands” and “Quality
Perception”. Using national brands as comparison for purchasing store brands, the overall




226                          Journal of Business Strategy and Execution Vol. 1 No.2 June 2009: 216 - 238
perception of quality and familiarity towards the products are proven to be important and have
significant relationships.
         Based on investigation, there is one aspect in the measurement constructs that have
significant relationship towards the outcome, which is: “Familiarity towards tore Brands”.


                          CONCLUSION AND RECOMENDATION


         Indonesian consumers, represented by sample, who do frequent shopping in modern
grocery stores, came from well-educated classes with characteristics as smart, price-sensitive
buyers. In general view, Indonesian consumers are aware in quality differences in products
available in modern grocery stores. Evaluation on a product based on quality is important
aspect in buying processes and this research found that although they are conscious in quality
difference of all products; their perceive store brands overall quality do not vary with national
brands. Furthermore, in the measurement construct, they believe that store brands offer great
value for money, making income levels as less important factor with their willingness in
buying store brands. External factors (such as: increasing inflation, increasing in oil price, or
other issues) can be the causes of consideration in purchasing store brands. Higher monthly
expenditure can be suppressed through the option of purchasing of store brands items,
especially in grocery products, such as: rice, sugar, cooking oil, and other primary goods.
         It is also discovered that the majority of total sample are relatively loyal in choosing
brand(s) for products they use and familiar with the various store brands products available in
the groceries. In general, delivering good customer’s perceived value, stores will gain trust
from them, making the evaluation of re-purchasing product attributes processes in the future
(before buying, such as: viewing the details in label, package, and most importantly, the
product’s quality) less time consuming. CPV-buying behavior relationship can be represented
by the research finding of probability to consider buying store branded products in the future
(with R2 of .574, it demonstrates that the model can be used optimally in predicting the
probability of repeated purchases of store brands items in the future for Indonesian consumers,
which is accounted for 57.4% of total source). The important improvement in store brands at
the present is by establishing and maintaining good quality products, not only in the content,
but also in the packaging, supported with adequate QC to ensure the undeceive buyers that
store brands attributes are good value items for money.
         In overall, the findings shows that the perceived values of Indonesian grocery
shoppers contribute positively to their perceptions of store brands and the better knowledge on
the aspects of store brand products due to their past experience in purchasing the items lead to
positive perceptions which eventually will lead to good possibility for them in re-purchasing
store brands products in the future.
         Based on the findings, methods in this research can be used or developed in measuring
consumer perceived value and buying behavior quantitatively in store brands area. Marketers
should explore all dimensions of customer value before deciding on an appropriate market
approach and develop new/different positioning strategy. Other scientific implications to
Marketing sector are: many important decisions about product development and marketing. In
the process of product development and marketing, provider of business should focus on
strategic decisions about product attributes, product branding, product packaging, product




Consumer’s Perceived Value and Buying … (Wahyu Adhi Nugroho & Luki Safitri Wihandoyo)        227
labeling and product support services. Product strategy also calls for building a product line
diversification (creating premium line for the same type of product).
For Future research recommendations, it is shown that people are more aware with the
existence of store brands products; therefore different aspects of this research can be inserted
to examine this subject more thoroughly. Variables in CPV model can be investigated further,
for example:
in price or quality perception, future researchers could add the variables focusing on at what
level of price(s) can be considered as “lowest”; how much the compromised floor price of
store brand items with accepted quality, followed by what products are sensitive for
quality/price reducing.

          This situation can lead researchers to search for the new aspects aside from quality
itself, for example: through its impact on store revenues and profits, do store brands contribute
to greater quality differentiation or greater price sensitivity in the market? Future research can
also discuss the effects on consuming store brands products (can be focused on food
categories) towards their health, is there any significant difference in terms of taste, smell,
color, length of expiration period of the store brands, as the results of adjusted new quality,
and other diverse dimensions to be explored.


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Arnold, W. (1999). Indonesia's Grocery Revolution. Urban Rich Lure Foreign Retailers and
        Spur a Recovery, 18 Nov. 1999.

Berry, L.L, Parasuraman, A (1997). Listening to the customer – the concept of a Service
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Holbrook, M. and Hirschman, E. (1982). The experiential aspects of consumption: consumer
         fantasies, feelings, and fun. Journal of Consumer Research, pp. 132-140.
http://query.nytimes.com/gst/fullpage.html?res=9C04E3D81F3DF93BA25752C1A96F95826
         0&sec=&spon=&pagewanted=all

http://patft.uspto.gov/netacgi/nph-Parser?patentnumber=1242872.

http://www.groceteria.com/about/history.html

http://www.carrefour.com/cdc/group/history/

http://www.hukmas.depkeu.go.id/kliping/NRC200500096.asp?kdprg=9&kdmedia=NR
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228                          Journal of Business Strategy and Execution Vol. 1 No.2 June 2009: 216 - 238
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Consumer’s Perceived Value and Buying … (Wahyu Adhi Nugroho & Luki Safitri Wihandoyo)       229
APPENDICES

A. Questionaire
Respondent yang terhormat, Survey ini dilakukan untuk kepentingan thesis sebagai tugas
akhir tingkat Strata satu (S1) di Universitas Bina Nusantara International. Kerjasama Anda
dalam menjawab kuesioner ini sangat kami hargai. Terima Kasih atas perhatian Anda.


Jenis kelamin:           Pria            Wanita

Berapakah kisaran umur Anda:
      Kurang dari 25 tahun             25-34 tahun          35-44 tahun          Di atas 44 tahun

Tingkat Pendidikan:
    SD – SMP        SMU             D1/D3          S1      S2

Tingkat Penghasilan: (per bulan; nett/take home pay)
     < 2 juta      2-5 juta     5-10 juta     10-20 juta
    20-40 juta     > 40 juta

Pekerjaan:
    Ibu rumah tangga            Pelajar       Pegawai Negeri Sipil/ Swasta
    Professional                Pensiunan

Jumlah anggota keluarga:

1 orang        2 orang       3 orang        4 orang          5 orang dan lebih


Berilah tanda V pada pilihan jawaban Anda.
        (STS=Sangat Tidak Setuju; TS=Tidak Setuju; N=Netral; S=Setuju; SS=Sangat Setuju)
                                                                          Involvement—Keterlibatan

                                                                   STS      TS      N      S      SS
 Saya cakap dan mahir dalam memilih produk saat berbelanja.
   Orang lain menjadikan saya sebagai sumber informasi dalam
   hal berbelanja.
 Produk yang saya beli di supermarket/hypermarket sangatlah
 penting.
   Produk yang saya beli di supermarket/hypermarket sangat




230                          Journal of Business Strategy and Execution Vol. 1 No.2 June 2009: 216 - 238
digunakan.
 Produk yang saya beli sangatlah menarik perhatian.

                                                                              Involvement—Keterlibatan

                                                                       STS     TS      N      S      SS
 Saya menyukai memberikan tips berbelanja kepada orang lain.
   Saya terlebih dahulu membaca label dan detail lain sebelum
   akhirnya memutuskan untuk membelinya.
                                                         Brand Loyalty – Loyalitas terhadap suatu Merek
 Saya memilih merek tertentu pada produk-produk yang saya
 beli.
   Saya tidak keberatan untuk mencari demi mendapatkan
   produk dengan merek favorit saya.
 Biasanya saya sangat setia terhadap merek tertentu yang saya
 beli.
   Saya memilih untuk berbelanja di supermarket/ hypermarket
   tertentu.
                                                               Price Perception – Persepsi terhadap harga

 Produk dengan merek supermarket/hypermarket tempat saya
 berbelanja menawarkan keunggulan dilihat dari segi harga.
   Produk dengan merek supermarket/hypermarket tempat saya
   berbelanja terlihat seperti barang obral.
 Jika harga lebih mahal, produk kebutuhan harian yang sejenis
 pasti juga menawarkan kualitas yang lebih baik.
   Adalah benar bahwa harga yang saya bayar sebanding
   dengan kualitas produk kebutuhan harian yang saya beli.
 Produk    kebutuhan    harian    dengan       merek   supermarket/
 hypermarket tempat saya berbelanja menguntungkan bagi saya.
                                                          Quality Perception – Persepsi terhadap kualitas
 Semua merek dari produk kebutuhan harian pada dasarnya
 memiliki kualitas yang serupa.
 Saya tidak melihat adanya perbedaan yang berarti dari produk
 kebutuhan harian, dari segi kualitas.
                                                          Quality Perception – Persepsi terhadap kualitas.




Consumer’s Perceived Value and Buying … (Wahyu Adhi Nugroho & Luki Safitri Wihandoyo)                  231
STS      TS      N      S      SS
 Kualitas produk kebutuhan harian dengan merek supermarket/
 hypermarket tidak kalah dengan merek lainnya.
   Dilihat dari segi kualitas secara keseluruhan, terdapat
   perbedaan yang sangat mencolok; produk kebutuhan harian
   dengan     merek       terkenal   dibandingkan      dengan    merek
   supermarket/hypermarket tempat saya berbelanja.
 Hanya terdapat sedikit variasi pada kualitas dari produk-produk
 kebutuhan harian yang dipasarkan.
                                                                                      Familiarity – Kebiasaan
 Saya biasa membeli produk dengan merek supermarket/
 hypermarket tempat saya berbelanja.
   Biasanya, pada troli/kereta belanja saya terdapat beberapa
   barang dengan merek supermarket/ hypermarket tempat saya
   berbelanja.
 Saya mengenal berbagai produk kebutuhan harian dengan
 merek supermarket/ hypermarket tempat saya berbelanja.
                                                                             Perceived Risk – Tingkat Resiko
 Dengan      mempertimbangkan          harga    yang    lebih   murah,
 pembelian       produk      kebutuhan      harian     dengan    merek
 supermarket/ hypermarket, bagi saya justru sangat beresiko.
   Menurut saya, jika tidak membeli barang kebutuhan harian
   dengan merek supermarket/ hypermarket tempat saya
   berbelanja, kerugian secara finansial justru sangat berarti.
 Pembelian       produk      kebutuhan      harian     dengan    merek
 supermarket/hypermarket beresiko karena kualitasnya yang
 inferior/bermutu rendah.
Apakah saran/kritik Anda terhadap produk kebutuhan harian dengan merek supermarket/hypermarket di
masa depan?
……………………………………………………………………………………….……………….……
……………………………………………………………………………………..………..……………
…….


Berilah tanda V pada pilihan jawaban Anda.
                          (1=Sangat Tidak Setuju; 2=Tidak Setuju; 3=Netral; 4=Setuju; 5=Sangat Setuju)




232                                  Journal of Business Strategy and Execution Vol. 1 No.2 June 2009: 216 - 238
Final Decision – Keputusan Akhir
                                                                      1        2       3   4   5
          Rekomendasi terhadap barang kebutuhan harian dengan
          merek supermarket/hypermarket kepada teman/kerabat




                                                                      1    2       3       4   5
         Keinginan untuk membeli barang kebutuhan harian
         dengan merek supermarket/hypermarket dibandingkan
         dengan barang kebutuhan harian dengan merek terkenal


                                                                      1     2      3       4   5
          Kemungkinan untuk membeli barang kebutuhan harian
          dengan    merek    supermarket/hypermarket     di    masa
          mendatang


B. List of Tables and Figures
                             Table 4. PERVAL Dimensions

            Factor Analysis                       PERVAL Dimensions
                                   Emotional     Perceived Functional             Functional
                                     Social         Risk     -Quality                -Price
           Enhances self          .917
           image                  .898
           Enhances social
           status                 .887
           Get social             .866
           approval               .838
           Sense of class
           Pride and self         .795
           esteem enhanced        .772
           Makes you              .763
           belong                 .714
           Appear
           intelligent            .629
           Projects right
           image                  .574
           Enhances
           relationships                          .809
           Strengthens
           friendship                             .779
           Meet social




Consumer’s Perceived Value and Buying … (Wahyu Adhi Nugroho & Luki Safitri Wihandoyo)              233
expectations                          .647
          Recommendation
          of experts                            .569
          Recommendation
          of friends                                            .789
          Recommendation                                        .774
          of salesperson                                        .634
          In store display                                      .617
          and promotion                                                         .829
          Age                                                                   .811
          Vintage
          Quality
          Brand
          Value for money
          Saves money

                       Table 5. Rotated Component Matrix (unsorted)
                               Rotated Component Matrixa
                                                                  Component
                                            1      2      3      4      5      6       7      8      9
I am somewhat of an expert when it
                                           .101 -.053 .732 .001 .152 -.008 .130 -.069 -.148
comes to shopping
People think of me as a good source of
                                           .063 .021 .825 .118 .005 .012 .104 .067 -.031
shopping information
Product that I buy from grocery store
                                           .216 .089 .042 .077 .760 .061 -.037 .047 .111
are very important
Product that I buy from grocery store
                                           .157 -.064 .129 .068 .749 -.149 .260 .008 -.077
matters a lot to me
Products that I buy from grocery store
                                           .150 -.075 .494 .032 .260 .073 -.065 -.013 .282
interests me a lot
I enjoy giving people tips on shopping     .112 .264 .552 .001 -.126 .005 -.199 .301 .021
I read product labels in detail before I
                                           .080 -.021 .103 .018 .434 -.032 .049 .539 -.015
buy grocery products
I prefer one/certain brand of most
                                           .717 -.123 .107 .021 .050 -.124 .354 .007 -.055
products I buy
I am willing to make an effort to search
                                           .756 -.007 .169 -.054 .134 -.117 -.040 .090 .044
my favorite brand
Usually, I care a lot about which
                                           .763 .110 .113 -.006 .022 .037 -.125 .105 .143
particular brand I buy
I prefer to always shop at one store       .660 .159 -.021 .139 .190 .118 -.130 .044 -.061
Store brand grocery items offer great
                                           .022 .117 .156 .081 .034 .126 .770 .047 .099
value for money




234                          Journal of Business Strategy and Execution Vol. 1 No.2 June 2009: 216 - 238
Store brand grocery items are appear to
                                          .152 -.047 -.073 .679 -.292 .070 .210 -.179 -.050
be a bargain
In grocery product, the higher the price
                                          .055 -.011 -.008 .153 .030 .050 .090 .277 .763
for a brand, the higher the quality
In grocery products, It is true that you
                                          .146 -.032 .020 -.020 -.038 .089 .063 .781 .185
get the quality that you paid for
Store brand grocery items are
                                         -.134 .247 .116 -.180 .301 .261 .453 .206 -.006
considered to be good buy
All brands of grocery products are
                                         -.003 -.001 -.054 .038 -.039 .828 .085 .099 .075
basically the same in quality
I do not think there are any significant
differences among different brands of -.021 .088 .099 -.066 -.036 .791 .211 .008 -.123
grocery products in term of quality
Store brand grocery products do not
                                         -.093 .110 -.182 -.320 .099 .183 .517 .017 -.083
vary a lot in term of quality
There are only minor variations among
brands of grocery products in terms of .085 .020 .000 .420 .096 -.259 .002 .173 .405
quality
There is a great deal of difference in
overall quality between nationally
                                          .037 .166 .083 .151 .042 .066 .070 .481 -.618
advertised and store brand grocery
items
I buy store brands                        .095 .788 .013 -.144 -.016 .164 .115 -.078 -.053
My shopping cart contains store brands
                                         -.024 .775 .007 -.100 .066 .062 .034 .024 -.150
for several products
I am very familiar with the various
store brand grocery items available in    .096 .733 .003 -.061 -.055 -.133 .117 .089 .095
the market
Considering the cost of grocery
products, for me to purchase store       -.146 -.199 .074 .662 .228 .086 -.030 .075 .108
brands would be very risky
Given the potential financial expenses
associated with purchasing store
branded grocery products, overall        -.092 .448 .053 .268 .278 .390 -.074 -.256 .038
financial risk is associated with
purchasing such products is substantial
The purchase of store brand grocery
items is risky because the quality of     .063 -.089 .151 .727 .149 -.067 -.312 .046 .014
store brands is inferior
Extraction Method: Principal Component Analysis.
Rotation Method: Varimax with Kaiser Normalization. a. Rotation converged in 9 iterations.

                           Table 6. Multiple Linear Regression Output




Consumer’s Perceived Value and Buying … (Wahyu Adhi Nugroho & Luki Safitri Wihandoyo)   235
Table 7. Multiple Linear Regression Output for Recommendation of Store Brands
                               Table 8. Variables Entered/Removed

      Model                  Variables Entered                     Variables Removed         Method
      1        Quality Perception, Product Importance,
               Familiarity Towards Store Brands, Shopping
                                                                              . Enter
               Interest and Knowledge Sharing, Brand
               Preferencesa
      a. All requested variables entered.
      b. Dependent Variable: Recommendation of store brand grocery product to their
      friends




  Table 9. Multiple Linear Regression Output for Willingness of Buying Store Brands over
                                     National Brands
                                Table 10. Model Summary

 Model           R        R Square Adjusted R Square                Std. Error of the Estimate
                      a
 1              .275         .076                .060                                  1.001
 a. Predictors: (Constant), Quality Perception, Product Importance, Familiarity Towards
 Store Brands, Shopping Interest and Knowledge Sharing, Brand Preferences
 b. Dependent Variable: willingness to buy store-branded grocery products over national
 brands

                               Table 11. Variables Entered/Removed

 Model                       Variables Entered                       Variables Removed         Method
 1        Quality Perception, Product Importance,
          Familiarity Towards Store Brands, Shopping
                                                                               . Enter
          Interest and Knowledge Sharing, Brand
          Preferencesa
 a. All requested variables entered.
 b. Dependent Variable: willingness to buy store-branded grocery products over national
 brands




236                             Journal of Business Strategy and Execution Vol. 1 No.2 June 2009: 216 - 238
Table 12. Coefficients

                                              Unstandardized        Standardized
                                               Coefficients         Coefficients
       Model                                   B       Std. Error       Beta            t         Sig.
       1       (Constant)                    1.885         .471               4.001                .000
               Brand Preferences              -.006        .081        -.004 -.073                 .941
               Familiarity Towards Store
                                               .294        .082         .207 3.580                 .000
               Brands
               Shopping Interest and
                                              -.017        .087        -.011 -.191                 .849
               Knowledge Sharing
               Product Importance              .085        .083         .061 1.031                 .303
               Quality Perception              .145        .064         .130 2.250                 .025
       a. Dependent Variable: willingness to buy store-branded grocery products over
       national brands


    Table 13. Multiple Linear Regression Output for Probability to Consider Buying Store
                               Brands’ Products in the Future
                                Table 14. Model Summary

   Model         R         R Square          Adjusted R Square         Std. Error of the Estimate
                       a
   1              .758            .574                      .567                         .655
   a. Predictors: (Constant), Quality Perception, Product Importance, Familiarity Towards
   Store Brands, Shopping Interest and Knowledge Sharing, Brand Preferences
   b. Dependent Variable: probability to consider buying store brand items in the future

                              Table 15. Variables Entered/Removed

                                                                        Variables
   Model                      Variables Entered                         Removed                 Method
   1        Quality Perception, Product Importance, Familiarity
            Towards Store Brands, Shopping Interest and                      . Enter
            Knowledge Sharing, Brand Preferencesa
   a. All requested variables entered.
   b. Dependent Variable: probability to consider buying store brand items in the future

                                       Table 16. Coefficients

                                              Unstandardized        Standardized
  Model                                        Coefficients         Coefficients            t       Sig.




Consumer’s Perceived Value and Buying … (Wahyu Adhi Nugroho & Luki Safitri Wihandoyo)                      237
B      Std. Error          Beta
 1      (Constant)                        .153        .308                      .497            .619
        Brand Preferences                -.019        .053            -.015 -.364               .716
        Familiarity Towards Store
                                         1.015        .054             .742 18.920              .000
        Brands
        Shopping Interest and
                                          .016        .057             .011     .281            .779
        Knowledge Sharing
        Product Importance               -.091        .054            -.068 -1.678              .094
        Quality Perception                .077        .042             .071 1.825               .069
 a. Dependent Variable: probability to consider buying store brand items in the
 future




238                         Journal of Business Strategy and Execution Vol. 1 No.2 June 2009: 216 - 238

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Consumer Buying behaviour

  • 1. CONSUMER’S PERCEIVED VALUE AND BUYING BEHAVIOR OF STORE BRANDS: AN EMPIRICAL INVESTIGATION Wahyu Adhi Nugroho1 & Luki Safitri Wihandoyo2 ABSTRACT Buying processes in grocery shopping involve many factors relating to the final decision of the consumers and those aspects influence Consumer Perceived Value and their buying behavior on deciding which type of product they would buy. Store brands existence as an option in today modern grocery shopping have an important position in retail strategy nowadays and the role have increased during the development of modern grocery stores in Indonesia. Therefore, understanding store brand buyer behavior is an essential topic for marketers and researchers. Demographic Profiling, Mean Value Analysis, Crosstabs Analysis, Reliability Analysis, Factor Analysis – Principal Component Analysis (Varimax Method), Multiple Linear Regression are used in this research. Dominating, significant variables revealed, pattern of relationship showed. In overall, the findings shows that consumer’s perceived value contribute positively to their perceptions of store brands and the better knowledge on the aspects of store brand products due to their past experience in purchasing the items lead to positive perceptions which eventually will lead to good possibility for them in re-purchasing store brands products in the future. Keywords: store brand, consumer perceived value (CPV), buying behavior 1, 2 BINUS BUSINESS SCHOOL, BINUS UNIVERSITY, JWC Campus, Jl. Hang Lekir I No. 6, Kebayoran Baru, South Jakarta 12120, wahyu@gmail.com. 216 Journal of Business Strategy and Execution Vol. 1 No.2 June 2009: 216 - 238
  • 2. INTRODUCTION Understanding Consumer’s Perceived Values place important part in winning customers over a product/service and became the major motive in choosing the problem. To develop and improve a product, companies must know what are the factors that consumers think as important to dig up information on how they think and perceive variables over a product before considering in purchasing it. CPV and buying behavior also reflect the performance of provider of the goods deliver their products. The instruments that will be investigated in the paper cover the relationships among dimensions of CPV and buying behavior, and their final decisions based on the variables in the measurement constructs (consist of recommendations to relatives, willingness to buy store brands items over national brands, and the possibility in future purchasing). Although this paper is the replication of a journal, further works are designed to enhance the results of the analysis. The improvements cover more method of analyses to give better view on the actual consumer’s perceived value and their buying behavior toward store brands (for example: in the research, demographic factor will be investigated to find out whether it is significantly related toward the problem or not, etc.) and supported with an open-ended question of suggestion and/or critics towards the groceries in the concern of store brands. Establishing a positive CPV also require strong brand image, which is crucial for any retailer, especially since more shoppers become more selective in making buying decisions when they are inside a store staring at a shelf full of items. The same applies to its approach to store brands. In Indonesia, the observed hypermarkets (Carrefour and Giant) and supermarket (Hero) have its selection of in-store brands are marked with the retailer's name, small print stating distribution information, and packaging design. The aim of this study is to provide understanding on the subject of Consumers Perceived Values and buying behavior towards store brands products in the perspective of Indonesia’s consumers, using measurement constructs of CPV and buying behavior. Important demographic factors, such as: income levels and group of ages will be investigated to seek its relationships towards the final decision of the buyers. In general, this paper outlines aspiration in providing sufficient information on today’s stores brands CPV, focused in Indonesia as market study. Moreover, as a focus in researching, using forms of consumer’s involvement, brand loyalty, price perception, quality perception, familiarity, and perceived risks as well as demographic factors, store brands attributes will be studied to dig up information on how they make a decision based on CPV variables before they buy store brands items. LITERATURE REVIEW 1. Method of Buying Behavior Zeithaml, Berry and Parasuraman (1996) suggested that the evidence of impact should be detectable by relating products quality to retention of customers. Consumer’s purchasing behavior can be viewed as a signal of retention or defection towards the products. When there is no re-purchasing from consumers, the acquiring cost, which is the cost of getting new Consumer’s Perceived Value and Buying … (Wahyu Adhi Nugroho & Luki Safitri Wihandoyo) 217
  • 3. customers, will be costly, rather than retaining the satisfied current customers because their attraction involves advertising and promoting, and other promotional costs. 2. Method of CPV An extensive theory of CPV was developed by Sheth, Newman, and Gross (1991), who study on how to measuring consumer perceived value by observing consumer choice as a “function of multiple 'consumption value' dimensions and that these dimensions make varying contributions in different choice situations.” They search whether consumer have the decision to buy level (buy or not buy), choosing the product level (product type A or product type B), or at brand level (brand A or brand B) through those five identified values. 3. Further Development on Measuring the Consumer Perceived Value and Buying Behavior, a Multidimensional Construct of Perceived Values After Sheth, Newman, and Gross introduced the underlined multidimensional construct of CPV, Sweeney (1996) investigates the measurement of perceived value construct through method named as PERVAL model, emphasizes not only on the multidimensional construct, but more on the non-physical value, a situation in which perceived value is critical to the choice in the buying process. 4. Reviews of Store Brands Previous Studies from Myers (1967) to Sudhir and Taluktar (2004) Table 1. Major Researches for Store Brands (1967-1997) YEAR RESEARCHER STUDY 1967 Myers Personality characteristics of store brand buyers 1965 Frank and Boyd 1971 Coe Store brand buyers in socioeconomic variables 1978 Murphy 1974 Bettman Information processing of store brand buyers 1981 Bellizzi Shopping style of store brand buyers 1982 Cunningham 1987 Salmon and Cmar 1992 Deveny Quality perception of store brand buyers 1994 Wilensky 1997 Baltas Table 2. Major Researches for Store Brands (2000-2004) YEAR RESEARCHER STUDY Building loyalty through store brands 2000 Corstjens and Lal The relationship between store brand and store loyalty 2001 Aliawadi, Neslin, and The relationship between store brand and store loyalty Gedenk 2002 Garretson, Fisher, and Buyers attitudes towards store brands Burton Quality perception of store brands and 2003 Sethuraman store brand purchase intention 218 Journal of Business Strategy and Execution Vol. 1 No.2 June 2009: 216 - 238
  • 4. Quality perception and Price perception 2003 Stambaugh on store brands buyers 2004 Sudhir and Talukdar Building loyalty through store brands 2004 Bonfrer and Chintagunta THEORITICAL FRAMEWORK Figure 1. Theoretical Framework Design This paper proposed a structured framework that composed of different types of values that buyers experience in the buying processes. The improvements and modification of previous studies will be applied in this thesis. 27 sub-values of the six major value structures are proposed based on the prior major researches on CPV and the buying behavior measurement models from Theory of Consumption Values by Sheth, Newman, and Gross (1991), Buying Behavior Model by Zeithaml, Berry and Parasuraman (1997),, to the development of PERVAL measurement models by Sweeney and Soutar (2001). Consumer’s Perceived Value and Buying … (Wahyu Adhi Nugroho & Luki Safitri Wihandoyo) 219
  • 5. HYPOTHESIS DEVELOPMENT In the research, groups of hypotheses will be situated as proposition for implementing the theoretical framework. Those hypotheses are: 1. Ho: There is no relationship between income level and willingness in buying store brands products over national brands. 2. H1: There is a relationship between income level and willingness in buying store brands products over national brands. 3. Ho: There is no relationship between age group and recommendation of store brands products. 4. H1: There is a relationship between age group and recommendation of store brands products. 5. Ho: There is no relationship between income level and probability to consider buying store brands products in the future. 6. H1: There is a relationship between income level and probability to consider buying store brands products in the future. 7. Hypotheses 1 – 3 related to the demographic aspects of store brands buyers and their final decisions toward the products. 8. Ho: Aspects in the new measurement constructs of CPV and buying behavior of store brands buyers do not have significant influence towards recommendation of store brands products. 9. H1: Aspects in the new measurement constructs of CPV and buying behavior of store brands buyers have significant influence towards recommendation of store brands products. 10. Ho: Aspects in the new measurement constructs of CPV and buying behavior of store brands buyers do not have significant influence towards willingness to purchase store brand grocery products over national brands. 11. H1: Aspects in the new measurement constructs of CPV and buying behavior of store brands buyers have significant influence towards willingness to purchase store brand grocery products over national brands. 12. Ho: Aspects in the new measurement constructs of CPV and buying behavior of store brands buyers do not have significant influence towards probability to consider buying store brand products in the future. 13. H1: Aspects in the new measurement constructs of CPV and buying behavior of store brands buyers have significant influence towards probability to consider buying store brand products in the future. 14. Ho: Partially, there is no aspect in the new measurement constructs of CPV and buying behavior of store brands buyers that has significant influence towards recommendation of store brands products. 15. H1: Partially, there are aspects in the new measurement constructs of CPV and buying behavior of store brands buyers that has significant influence towards recommendation of store brands products. 16. Ho: Partially, there is no aspect in the new measurement constructs of CPV and buying behavior of store brands buyers that has significant influence towards willingness to purchase store brand grocery products over national brands. 220 Journal of Business Strategy and Execution Vol. 1 No.2 June 2009: 216 - 238
  • 6. 17. H1: Partially, there are aspects in the new measurement constructs of CPV and buying behavior of store brands buyers has significant influence towards willingness to purchase store brand grocery products over national brands. 18. Ho: Partially, there is no aspect in the new measurement constructs of CPV and buying behavior of store brands buyers that has significant influence towards probability to consider buying store brand products in the future. 19. H1: Partially, there are aspects in the new measurement constructs of CPV and buying behavior of store brands buyers that has significant influence towards probability to consider buying store brand products in the future. DATA AND RESEARCH METHODOLOGY Applied Research questions in this thesis will be presented in Indonesian language considering the entire random samples that carry out the task of their frequent shopping in the supermarkets and/or hypermarkets understand Bahasa Indonesia as the language. Period of distribution : 28th May 2008 - 14th June 2008 Scope for Questionnaires : DKI Jakarta Total questionnaire : 300 questionnaires Target respondents : grocery shoppers Sampling method : Random sampling method Respondents Demographic Profile of store brand buyers The questionnaire results were analyzed using SPSS version 16.0. The first method of analyzing the gathered data is grouping demographic factors, which are: gender, age group, education level, income level (net income per month), occupation, and the number of family member, through Relative Frequency. Mean Value Analysis Mean Value Analysis in this research has purpose to observe the tendency of respondents’ responses in filling the questionnaire from 27 questions related to the measurement of CPV and buying behavior of store brands purchasers. Likert Scales in the questionnaire were based on values of 1 (“Strongly Disagree”), 2 (“Disagree”), 3 (“Neither Disagree nor Agree” or “Neutral”), 4 (“Agree”), and the highest point is 5 (“Strongly Agree”). Crosstabs Analysis Crosstabs Analysis is used to show distribution of two variables in cross tabulation/table. Chi-Square Test is the important aspect in Crosstab Analysis, with purpose to investigate whether there is a relationship between column and row in cross tabulation. Chi- Square Test will be performed under sig. (2-sided) < 0.05 to reject Ho. Factor Analysis of CPV and buying behavior of store brand buyer The primary objectives of an FA are to determine: 1. The number of common factors influencing a set of measures. 2. The strength of the relationship between each factor and each observed measure. Some common uses of FA are to: (www.stat-help.com) Consumer’s Perceived Value and Buying … (Wahyu Adhi Nugroho & Luki Safitri Wihandoyo) 221
  • 7. Identify the nature of the constructs underlying responses in a specific content area. • Determine what sets of items “hang together” in a questionnaire. • Demonstrate the dimensionality of a measurement scale. Researchers often wish to develop scales that respond to a single characteristic. • Determine what features are most important when classifying a group of items. • Generate “factor scores” representing values of the underlying constructs for use in other analyses. The principal components’ method for initial factor extraction with the criterion eigenvalue greater than 1 and Varimax method of rotation was applied the store brand shopping behavior in order to extract the dimensions based on the construct. “Varimax rotation method minimizes the complexity of the components by making the large loading larger and the small loadings smaller within each component.” (Leech, et.al, p.82) Reliability Analysis Reliability can reflect the internal consistency of the indicators measuring a given factor. Reliabilities for all constructs exceed or close to 0.7 will be interpreted as a satisfying general requirement of reliability for research instruments. Frequencies Distribution of Customers’ Responses The main purpose is to support Factor Analysis and Principal Component Analysis results by showing dominate response(s) in a particular variable. Multiple Linear Regression In regression analysis we fit the predictors with aspects in the CPV measurement constructs to investigate the dependent variables (recommendation of store brands, willingness to buy store brands over national brands, and probability of buying store brands in the future). Suggestions to Grocery Stores for Improvement Respondents can participate in giving their suggestions for the future improvement of store brands existence in Indonesia. FINDINGS AND DISCUSSIONS Respondents participated in this research are female (214 people; 71.3%) and male (86 people, 28.7%). Most respondents are from group age of 25-34 years old (108 people, 36%), followed by the group age of 35-44 years old for 26.7%. Number of respondents with age group of < 25 years old and > 44 years old do not vary much in the figure. Dominating class in this research came from people with Bachelor degree (163 people, 54.3%) as their current education level. People with Diploma degree and High school shared the slightly equal distribution with 18% and 18.7%. Most respondents (105 people) earn Rp 2-5 million in their monthly nett income, followed by the group of respondents with nett income of Rp 5-10 million (22%) and less than Rp 2 million (21.7%). 3 respondents (1%) left the subject empty. 222 Journal of Business Strategy and Execution Vol. 1 No.2 June 2009: 216 - 238
  • 8. Most respondents (180 people) have their career as Employee (60%), followed by those with Housewife as occupation (14.7%) and Professional workers (14%). Most respondents live in family (91 people) consistof 4 people (31.3%), followed by the group of family 5 people and more which accounted for 30.3%. Mean Value Analysis in this research has purpose to observe the tendency of respondents’ responses in filling the questionnaire from 27 questions related to the measurement of CPV and buying behavior of store brands purchasers. Variable with the lowest Mean Value is “The purchase of store brand grocery items is risky because the quality of store brands is inferior”, meaning that most respondents disagree (answered strongly disagree/disagree) with the statement, or in other words, most of them shared the common view to not consider purchasing store brand as risky because the inferior quality of the items. The highest Mean value is “Product that I buy from grocery store matters a lot to me”, meaning that most respondents have the most agreed opinion with the statement. Crosstabs Analysis is used to show distribution of two variables in cross tabulation/table. There is no relationship between willingness of buying store brands compared to national brands and their income level. There is also a relationship between recommendation of store brand grocery product to friends and their age group; group age of < 25 years old and > 40 years old have the tendency to recommend store brands to their friends and relatives. And furthermore, there is a relationship between probability to consider buying store brand items in the future and income level. Respondents with monthly Nett income of < Rp 2 million and Rp 2-5 million have high percentage in store brands items future repeated purchases probability. Using Factor Analysis using Principal Component Analysis, the variables after rotation are diversified into 9 components. After rotation, the CPV dimensions which consist in 27 variables and initially grouped in 6 factors transforming to 9 factors. Table 3. Rotated Component Matrixa Component 1 2 3 4 5 6 7 8 9 Usually, I care a lot about which .763 .110 .113 -.006 .022 .037 -.125 .105 .143 particular brand I buy I am willing to make an effort to search .756 -.007 .169 -.054 .134 -.117 -.040 .090 .044 my favorite brand I prefer one/certain brand of most .717 -.123 .107 .021 .050 -.124 .354 .007 -.055 products I buy I prefer to always shop at one store .660 .159 -.021 .139 .190 .118 -.130 .044 -.061 I buy store brands .095 .788 .013 -.144 -.016 .164 .115 -.078 -.053 My shopping cart contains store brands -.024 .775 .007 -.100 .066 .062 .034 .024 -.150 for several products I am very familiar with the various store brand grocery items available in .096 .733 .003 -.061 -.055 -.133 .117 .089 .095 the market Consumer’s Perceived Value and Buying … (Wahyu Adhi Nugroho & Luki Safitri Wihandoyo) 223
  • 9. Given the potential financial expenses associated with purchasing store branded grocery products, overall -.092 .448 .053 .268 .278 .390 -.074 -.256 .038 financial risk is associated with purchasing such products is substantial People think of me as a good source of .063 .021 .825 .118 .005 .012 .104 .067 -.031 shopping information I am somewhat of an expert when it .101 -.053 .732 .001 .152 -.008 .130 -.069 -.148 comes to shopping I enjoy giving people tips on shopping .112 .264 .552 .001 -.126 .005 -.199 .301 .021 Products that I buy from grocery store .150 -.075 .494 .032 .260 .073 -.065 -.013 .282 interests me a lot The purchase of store brand grocery items is risky because the quality of .063 -.089 .151 .727 .149 -.067 -.312 .046 .014 store brands is inferior Store brand grocery items are appear to .152 -.047 -.073 .679 -.292 .070 .210 -.179 -.050 be a bargain Considering the cost of grocery products, for me to purchase store -.146 -.199 .074 .662 .228 .086 -.030 .075 .108 brands would be very risky There are only minor variations among brands of grocery products in terms of .085 .020 .000 .420 .096 -.259 .002 .173 .405 quality Product that I buy from grocery store .216 .089 .042 .077 .760 .061 -.037 .047 .111 are very important Product that I buy from grocery store .157 -.064 .129 .068 .749 -.149 .260 .008 -.077 matters a lot to me All brands of grocery products are -.003 -.001 -.054 .038 -.039 .828 .085 .099 .075 basically the same in quality I do not think there are any significant differences among different brands of -.021 .088 .099 -.066 -.036 .791 .211 .008 -.123 grocery products in term of quality Store brand grocery items offer great .022 .117 .156 .081 .034 .126 .770 .047 .099 value for money Store brand grocery products do not -.093 .110 -.182 -.320 .099 .183 .517 .017 -.083 vary a lot in term of quality Store brand grocery items are -.134 .247 .116 -.180 .301 .261 .453 .206 -.006 considered to be good buy In grocery products, It is true that you .146 -.032 .020 -.020 -.038 .089 .063 .781 .185 get the quality that you paid for I read product labels in detail before I .080 -.021 .103 .018 .434 -.032 .049 .539 -.015 buy grocery products 224 Journal of Business Strategy and Execution Vol. 1 No.2 June 2009: 216 - 238
  • 10. In grocery product, the higher the price .055 -.011 -.008 .153 .030 .050 .090 .277 .763 for a brand, the higher the quality There is a great deal of difference in overall quality between nationally .037 .166 .083 .151 .042 .066 .070 .481 -.618 advertised and store brand grocery items Extraction Method: Principal Component Analysis. Rotation Method: Varimax with Kaiser Normalization. a. Rotation converged in 9 iterations. Based on the result, variables with high loadings in the same factor indicate the significant correlations among other item(s); therefore the next step is to create new labels according to their shared characteristics/attributes acquired from the items in the Principal Component Analysis. Factor 1 will be labeled as “Brand Preferences” 1 Usually, I care a lot about which particular brand I buy .763 I am willing to make an effort to search my favorite brand .756 I prefer one/certain brand of most products I buy .717 I prefer to always shop at one store .660 Factor 2 will be labeled as: “Familiarity towards Store Brands” 2 I buy store brands .788 My shopping cart contains store brands for several products .775 I am very familiar with the various store brand grocery items available in the .733 market Given the potential financial expenses associated with purchasing store branded grocery products, overall financial risk is associated with .448 purchasing such products is substantial Factor 3 will be labeled as: “Shopping Interest and Knowledge Sharing” 3 People think of me as a good source of shopping information .825 I am somewhat of an expert when it comes to shopping .732 I enjoy giving people tips on shopping .552 Products that I buy from grocery store interests me a lot .494 Factor 4 will be labeled as: “Risk Perception” 4 The purchase of store brand grocery items is risky because the quality of .727 store brands is inferior Consumer’s Perceived Value and Buying … (Wahyu Adhi Nugroho & Luki Safitri Wihandoyo) 225
  • 11. Store brand grocery items are appear to be a bargain .679 Considering the cost of grocery products, for me to purchase store brands .662 would be very risky There are only minor variations among brands of grocery products in terms .420 of quality Factor 5 will be labeled as: “Product Importance” 5 Product that I buy from grocery store are very important .760 Product that I buy from grocery store matters a lot to me .749 Factor 6 will be labeled as: “Quality Perception” 6 All brands of grocery products are basically the same in quality .828 I do not think there are any significant differences among different brands of .791 grocery products in term of quality Factor 7 will be labeled as: “Store Brand Value for Money” 7 Store brand grocery items offer great value for money .770 Store brand grocery products do not vary a lot in term of quality .517 Store brand grocery items are considered to be good buy .453 Factor 8 will be labeled as: “Involvement” 8 In grocery products, It is true that you get the quality that you paid for .781 I read product labels in detail before I buy grocery products .539 Factor 9 will be labeled as: “Store Brands vs. National Brands Perception” 9 In grocery product, the higher the price for a brand, the higher the quality .763 There is a great deal of difference in overall quality between nationally -.618 advertised and store brand grocery items In Multiple Linear Regression, there are two aspects in the measurement constructs that have significant relationship towards the outcome (recommendation), which are: “Familiarity towards Store Brands” and “Shopping Interest and Knowledge Sharing”. It seemed that grocery shoppers, especially store brands buyers, whom willing to give recommendation of the products they preferred are familiar with the existence of store branded products available in the market and have interest in grocery shopping. The result also shows that there are two aspects in the measurement constructs that have significant relationship towards the outcome (willingness to buy store branded products than national brands), which are: “Familiarity towards Store Brands” and “Quality Perception”. Using national brands as comparison for purchasing store brands, the overall 226 Journal of Business Strategy and Execution Vol. 1 No.2 June 2009: 216 - 238
  • 12. perception of quality and familiarity towards the products are proven to be important and have significant relationships. Based on investigation, there is one aspect in the measurement constructs that have significant relationship towards the outcome, which is: “Familiarity towards tore Brands”. CONCLUSION AND RECOMENDATION Indonesian consumers, represented by sample, who do frequent shopping in modern grocery stores, came from well-educated classes with characteristics as smart, price-sensitive buyers. In general view, Indonesian consumers are aware in quality differences in products available in modern grocery stores. Evaluation on a product based on quality is important aspect in buying processes and this research found that although they are conscious in quality difference of all products; their perceive store brands overall quality do not vary with national brands. Furthermore, in the measurement construct, they believe that store brands offer great value for money, making income levels as less important factor with their willingness in buying store brands. External factors (such as: increasing inflation, increasing in oil price, or other issues) can be the causes of consideration in purchasing store brands. Higher monthly expenditure can be suppressed through the option of purchasing of store brands items, especially in grocery products, such as: rice, sugar, cooking oil, and other primary goods. It is also discovered that the majority of total sample are relatively loyal in choosing brand(s) for products they use and familiar with the various store brands products available in the groceries. In general, delivering good customer’s perceived value, stores will gain trust from them, making the evaluation of re-purchasing product attributes processes in the future (before buying, such as: viewing the details in label, package, and most importantly, the product’s quality) less time consuming. CPV-buying behavior relationship can be represented by the research finding of probability to consider buying store branded products in the future (with R2 of .574, it demonstrates that the model can be used optimally in predicting the probability of repeated purchases of store brands items in the future for Indonesian consumers, which is accounted for 57.4% of total source). The important improvement in store brands at the present is by establishing and maintaining good quality products, not only in the content, but also in the packaging, supported with adequate QC to ensure the undeceive buyers that store brands attributes are good value items for money. In overall, the findings shows that the perceived values of Indonesian grocery shoppers contribute positively to their perceptions of store brands and the better knowledge on the aspects of store brand products due to their past experience in purchasing the items lead to positive perceptions which eventually will lead to good possibility for them in re-purchasing store brands products in the future. Based on the findings, methods in this research can be used or developed in measuring consumer perceived value and buying behavior quantitatively in store brands area. Marketers should explore all dimensions of customer value before deciding on an appropriate market approach and develop new/different positioning strategy. Other scientific implications to Marketing sector are: many important decisions about product development and marketing. In the process of product development and marketing, provider of business should focus on strategic decisions about product attributes, product branding, product packaging, product Consumer’s Perceived Value and Buying … (Wahyu Adhi Nugroho & Luki Safitri Wihandoyo) 227
  • 13. labeling and product support services. Product strategy also calls for building a product line diversification (creating premium line for the same type of product). For Future research recommendations, it is shown that people are more aware with the existence of store brands products; therefore different aspects of this research can be inserted to examine this subject more thoroughly. Variables in CPV model can be investigated further, for example: in price or quality perception, future researchers could add the variables focusing on at what level of price(s) can be considered as “lowest”; how much the compromised floor price of store brand items with accepted quality, followed by what products are sensitive for quality/price reducing. This situation can lead researchers to search for the new aspects aside from quality itself, for example: through its impact on store revenues and profits, do store brands contribute to greater quality differentiation or greater price sensitivity in the market? Future research can also discuss the effects on consuming store brands products (can be focused on food categories) towards their health, is there any significant difference in terms of taste, smell, color, length of expiration period of the store brands, as the results of adjusted new quality, and other diverse dimensions to be explored. REFERENCES Arnold, W. (1999). Indonesia's Grocery Revolution. Urban Rich Lure Foreign Retailers and Spur a Recovery, 18 Nov. 1999. Berry, L.L, Parasuraman, A (1997). Listening to the customer – the concept of a Service Quality Information System. Sloan Management Review, pp.65-76. Holbrook, M. and Hirschman, E. (1982). The experiential aspects of consumption: consumer fantasies, feelings, and fun. Journal of Consumer Research, pp. 132-140. http://query.nytimes.com/gst/fullpage.html?res=9C04E3D81F3DF93BA25752C1A96F95826 0&sec=&spon=&pagewanted=all http://patft.uspto.gov/netacgi/nph-Parser?patentnumber=1242872. http://www.groceteria.com/about/history.html http://www.carrefour.com/cdc/group/history/ http://www.hukmas.depkeu.go.id/kliping/NRC200500096.asp?kdprg=9&kdmedia=NR C&nourut=200500096In http://www2.chass.ncsu.edu/reliability.htm 228 Journal of Business Strategy and Execution Vol. 1 No.2 June 2009: 216 - 238
  • 14. Leech, et al. (2005). SPSS for Intermediate Statistics: Use and Interpretation, 2nd edition. New Jersey: Lawrence Erlbaum Associates, Inc. Schiffman, L. and Kanuk, L. (2004). Consumer Behavior, 8th edition. New Jersey: Pearson Prentice Hall. Sheth, et al. (1991). Why We Buy, What We Buy: A Theory of Consumption Values. Journal of Business Research, Mar. 1991; Vol. 22, No. 2, pp. 159-170. Sweeney, J. and Soutar, G. (2001). Consumer Perceived Value: The Development of a Multiple Item Scale. Journal of Retailing, Vol. 77, No. 2, pp. 203-220. Torres, B. (2006). Safe Way Pushes Store Brands. Oakland Tribune. Sep 21, 2006. http://findarticles.com/p/articles/mi_qn4176/is_20060921/ai_n16752683 Triatno, D. (2008). Mandiri Belajar SPSS, 1st edition. Jakarta: Mediakom Westbrook, R. & Oliver, R. (1991). The Dimensionality of Consumption Emotion Patterns and Consumer Satisfaction. The Journal of Consumer Research, Jun. 1991; Vol. 18, No. 1, pp. 84-91. Woodruff, R. (1997). Customer Value Change in Industrial Marketing Relationships: A Call for New Strategies and Research. Industrial Marketing Management journal, Mar. 1997; Vol. 26, Iss. 2, pp. 163-175. Wright, L. T. & Crimp, M. (2000). The Marketing Research Process, 5th edition. Harlow: Prentice Hall. www.stat-help.com www.statsoft.com/textbook/stmulreg.html www.sussex.ac.uk/Users/andyf/factor.pdf Zeithaml, et al. (1996). The Behavioral Consequences of Service Quality. Journal of Marketing, Apr. 1996, pp. 31-46 Zaltman, Gerald. (2003). How Customers Think: Essential Insights into the Mind of the Market, 1st edition. Boston: Harvard School Press. Consumer’s Perceived Value and Buying … (Wahyu Adhi Nugroho & Luki Safitri Wihandoyo) 229
  • 15. APPENDICES A. Questionaire Respondent yang terhormat, Survey ini dilakukan untuk kepentingan thesis sebagai tugas akhir tingkat Strata satu (S1) di Universitas Bina Nusantara International. Kerjasama Anda dalam menjawab kuesioner ini sangat kami hargai. Terima Kasih atas perhatian Anda. Jenis kelamin: Pria Wanita Berapakah kisaran umur Anda: Kurang dari 25 tahun 25-34 tahun 35-44 tahun Di atas 44 tahun Tingkat Pendidikan: SD – SMP SMU D1/D3 S1 S2 Tingkat Penghasilan: (per bulan; nett/take home pay) < 2 juta 2-5 juta 5-10 juta 10-20 juta 20-40 juta > 40 juta Pekerjaan: Ibu rumah tangga Pelajar Pegawai Negeri Sipil/ Swasta Professional Pensiunan Jumlah anggota keluarga: 1 orang 2 orang 3 orang 4 orang 5 orang dan lebih Berilah tanda V pada pilihan jawaban Anda. (STS=Sangat Tidak Setuju; TS=Tidak Setuju; N=Netral; S=Setuju; SS=Sangat Setuju) Involvement—Keterlibatan STS TS N S SS Saya cakap dan mahir dalam memilih produk saat berbelanja. Orang lain menjadikan saya sebagai sumber informasi dalam hal berbelanja. Produk yang saya beli di supermarket/hypermarket sangatlah penting. Produk yang saya beli di supermarket/hypermarket sangat 230 Journal of Business Strategy and Execution Vol. 1 No.2 June 2009: 216 - 238
  • 16. digunakan. Produk yang saya beli sangatlah menarik perhatian. Involvement—Keterlibatan STS TS N S SS Saya menyukai memberikan tips berbelanja kepada orang lain. Saya terlebih dahulu membaca label dan detail lain sebelum akhirnya memutuskan untuk membelinya. Brand Loyalty – Loyalitas terhadap suatu Merek Saya memilih merek tertentu pada produk-produk yang saya beli. Saya tidak keberatan untuk mencari demi mendapatkan produk dengan merek favorit saya. Biasanya saya sangat setia terhadap merek tertentu yang saya beli. Saya memilih untuk berbelanja di supermarket/ hypermarket tertentu. Price Perception – Persepsi terhadap harga Produk dengan merek supermarket/hypermarket tempat saya berbelanja menawarkan keunggulan dilihat dari segi harga. Produk dengan merek supermarket/hypermarket tempat saya berbelanja terlihat seperti barang obral. Jika harga lebih mahal, produk kebutuhan harian yang sejenis pasti juga menawarkan kualitas yang lebih baik. Adalah benar bahwa harga yang saya bayar sebanding dengan kualitas produk kebutuhan harian yang saya beli. Produk kebutuhan harian dengan merek supermarket/ hypermarket tempat saya berbelanja menguntungkan bagi saya. Quality Perception – Persepsi terhadap kualitas Semua merek dari produk kebutuhan harian pada dasarnya memiliki kualitas yang serupa. Saya tidak melihat adanya perbedaan yang berarti dari produk kebutuhan harian, dari segi kualitas. Quality Perception – Persepsi terhadap kualitas. Consumer’s Perceived Value and Buying … (Wahyu Adhi Nugroho & Luki Safitri Wihandoyo) 231
  • 17. STS TS N S SS Kualitas produk kebutuhan harian dengan merek supermarket/ hypermarket tidak kalah dengan merek lainnya. Dilihat dari segi kualitas secara keseluruhan, terdapat perbedaan yang sangat mencolok; produk kebutuhan harian dengan merek terkenal dibandingkan dengan merek supermarket/hypermarket tempat saya berbelanja. Hanya terdapat sedikit variasi pada kualitas dari produk-produk kebutuhan harian yang dipasarkan. Familiarity – Kebiasaan Saya biasa membeli produk dengan merek supermarket/ hypermarket tempat saya berbelanja. Biasanya, pada troli/kereta belanja saya terdapat beberapa barang dengan merek supermarket/ hypermarket tempat saya berbelanja. Saya mengenal berbagai produk kebutuhan harian dengan merek supermarket/ hypermarket tempat saya berbelanja. Perceived Risk – Tingkat Resiko Dengan mempertimbangkan harga yang lebih murah, pembelian produk kebutuhan harian dengan merek supermarket/ hypermarket, bagi saya justru sangat beresiko. Menurut saya, jika tidak membeli barang kebutuhan harian dengan merek supermarket/ hypermarket tempat saya berbelanja, kerugian secara finansial justru sangat berarti. Pembelian produk kebutuhan harian dengan merek supermarket/hypermarket beresiko karena kualitasnya yang inferior/bermutu rendah. Apakah saran/kritik Anda terhadap produk kebutuhan harian dengan merek supermarket/hypermarket di masa depan? ……………………………………………………………………………………….……………….…… ……………………………………………………………………………………..………..…………… ……. Berilah tanda V pada pilihan jawaban Anda. (1=Sangat Tidak Setuju; 2=Tidak Setuju; 3=Netral; 4=Setuju; 5=Sangat Setuju) 232 Journal of Business Strategy and Execution Vol. 1 No.2 June 2009: 216 - 238
  • 18. Final Decision – Keputusan Akhir 1 2 3 4 5 Rekomendasi terhadap barang kebutuhan harian dengan merek supermarket/hypermarket kepada teman/kerabat 1 2 3 4 5 Keinginan untuk membeli barang kebutuhan harian dengan merek supermarket/hypermarket dibandingkan dengan barang kebutuhan harian dengan merek terkenal 1 2 3 4 5 Kemungkinan untuk membeli barang kebutuhan harian dengan merek supermarket/hypermarket di masa mendatang B. List of Tables and Figures Table 4. PERVAL Dimensions Factor Analysis PERVAL Dimensions Emotional Perceived Functional Functional Social Risk -Quality -Price Enhances self .917 image .898 Enhances social status .887 Get social .866 approval .838 Sense of class Pride and self .795 esteem enhanced .772 Makes you .763 belong .714 Appear intelligent .629 Projects right image .574 Enhances relationships .809 Strengthens friendship .779 Meet social Consumer’s Perceived Value and Buying … (Wahyu Adhi Nugroho & Luki Safitri Wihandoyo) 233
  • 19. expectations .647 Recommendation of experts .569 Recommendation of friends .789 Recommendation .774 of salesperson .634 In store display .617 and promotion .829 Age .811 Vintage Quality Brand Value for money Saves money Table 5. Rotated Component Matrix (unsorted) Rotated Component Matrixa Component 1 2 3 4 5 6 7 8 9 I am somewhat of an expert when it .101 -.053 .732 .001 .152 -.008 .130 -.069 -.148 comes to shopping People think of me as a good source of .063 .021 .825 .118 .005 .012 .104 .067 -.031 shopping information Product that I buy from grocery store .216 .089 .042 .077 .760 .061 -.037 .047 .111 are very important Product that I buy from grocery store .157 -.064 .129 .068 .749 -.149 .260 .008 -.077 matters a lot to me Products that I buy from grocery store .150 -.075 .494 .032 .260 .073 -.065 -.013 .282 interests me a lot I enjoy giving people tips on shopping .112 .264 .552 .001 -.126 .005 -.199 .301 .021 I read product labels in detail before I .080 -.021 .103 .018 .434 -.032 .049 .539 -.015 buy grocery products I prefer one/certain brand of most .717 -.123 .107 .021 .050 -.124 .354 .007 -.055 products I buy I am willing to make an effort to search .756 -.007 .169 -.054 .134 -.117 -.040 .090 .044 my favorite brand Usually, I care a lot about which .763 .110 .113 -.006 .022 .037 -.125 .105 .143 particular brand I buy I prefer to always shop at one store .660 .159 -.021 .139 .190 .118 -.130 .044 -.061 Store brand grocery items offer great .022 .117 .156 .081 .034 .126 .770 .047 .099 value for money 234 Journal of Business Strategy and Execution Vol. 1 No.2 June 2009: 216 - 238
  • 20. Store brand grocery items are appear to .152 -.047 -.073 .679 -.292 .070 .210 -.179 -.050 be a bargain In grocery product, the higher the price .055 -.011 -.008 .153 .030 .050 .090 .277 .763 for a brand, the higher the quality In grocery products, It is true that you .146 -.032 .020 -.020 -.038 .089 .063 .781 .185 get the quality that you paid for Store brand grocery items are -.134 .247 .116 -.180 .301 .261 .453 .206 -.006 considered to be good buy All brands of grocery products are -.003 -.001 -.054 .038 -.039 .828 .085 .099 .075 basically the same in quality I do not think there are any significant differences among different brands of -.021 .088 .099 -.066 -.036 .791 .211 .008 -.123 grocery products in term of quality Store brand grocery products do not -.093 .110 -.182 -.320 .099 .183 .517 .017 -.083 vary a lot in term of quality There are only minor variations among brands of grocery products in terms of .085 .020 .000 .420 .096 -.259 .002 .173 .405 quality There is a great deal of difference in overall quality between nationally .037 .166 .083 .151 .042 .066 .070 .481 -.618 advertised and store brand grocery items I buy store brands .095 .788 .013 -.144 -.016 .164 .115 -.078 -.053 My shopping cart contains store brands -.024 .775 .007 -.100 .066 .062 .034 .024 -.150 for several products I am very familiar with the various store brand grocery items available in .096 .733 .003 -.061 -.055 -.133 .117 .089 .095 the market Considering the cost of grocery products, for me to purchase store -.146 -.199 .074 .662 .228 .086 -.030 .075 .108 brands would be very risky Given the potential financial expenses associated with purchasing store branded grocery products, overall -.092 .448 .053 .268 .278 .390 -.074 -.256 .038 financial risk is associated with purchasing such products is substantial The purchase of store brand grocery items is risky because the quality of .063 -.089 .151 .727 .149 -.067 -.312 .046 .014 store brands is inferior Extraction Method: Principal Component Analysis. Rotation Method: Varimax with Kaiser Normalization. a. Rotation converged in 9 iterations. Table 6. Multiple Linear Regression Output Consumer’s Perceived Value and Buying … (Wahyu Adhi Nugroho & Luki Safitri Wihandoyo) 235
  • 21. Table 7. Multiple Linear Regression Output for Recommendation of Store Brands Table 8. Variables Entered/Removed Model Variables Entered Variables Removed Method 1 Quality Perception, Product Importance, Familiarity Towards Store Brands, Shopping . Enter Interest and Knowledge Sharing, Brand Preferencesa a. All requested variables entered. b. Dependent Variable: Recommendation of store brand grocery product to their friends Table 9. Multiple Linear Regression Output for Willingness of Buying Store Brands over National Brands Table 10. Model Summary Model R R Square Adjusted R Square Std. Error of the Estimate a 1 .275 .076 .060 1.001 a. Predictors: (Constant), Quality Perception, Product Importance, Familiarity Towards Store Brands, Shopping Interest and Knowledge Sharing, Brand Preferences b. Dependent Variable: willingness to buy store-branded grocery products over national brands Table 11. Variables Entered/Removed Model Variables Entered Variables Removed Method 1 Quality Perception, Product Importance, Familiarity Towards Store Brands, Shopping . Enter Interest and Knowledge Sharing, Brand Preferencesa a. All requested variables entered. b. Dependent Variable: willingness to buy store-branded grocery products over national brands 236 Journal of Business Strategy and Execution Vol. 1 No.2 June 2009: 216 - 238
  • 22. Table 12. Coefficients Unstandardized Standardized Coefficients Coefficients Model B Std. Error Beta t Sig. 1 (Constant) 1.885 .471 4.001 .000 Brand Preferences -.006 .081 -.004 -.073 .941 Familiarity Towards Store .294 .082 .207 3.580 .000 Brands Shopping Interest and -.017 .087 -.011 -.191 .849 Knowledge Sharing Product Importance .085 .083 .061 1.031 .303 Quality Perception .145 .064 .130 2.250 .025 a. Dependent Variable: willingness to buy store-branded grocery products over national brands Table 13. Multiple Linear Regression Output for Probability to Consider Buying Store Brands’ Products in the Future Table 14. Model Summary Model R R Square Adjusted R Square Std. Error of the Estimate a 1 .758 .574 .567 .655 a. Predictors: (Constant), Quality Perception, Product Importance, Familiarity Towards Store Brands, Shopping Interest and Knowledge Sharing, Brand Preferences b. Dependent Variable: probability to consider buying store brand items in the future Table 15. Variables Entered/Removed Variables Model Variables Entered Removed Method 1 Quality Perception, Product Importance, Familiarity Towards Store Brands, Shopping Interest and . Enter Knowledge Sharing, Brand Preferencesa a. All requested variables entered. b. Dependent Variable: probability to consider buying store brand items in the future Table 16. Coefficients Unstandardized Standardized Model Coefficients Coefficients t Sig. Consumer’s Perceived Value and Buying … (Wahyu Adhi Nugroho & Luki Safitri Wihandoyo) 237
  • 23. B Std. Error Beta 1 (Constant) .153 .308 .497 .619 Brand Preferences -.019 .053 -.015 -.364 .716 Familiarity Towards Store 1.015 .054 .742 18.920 .000 Brands Shopping Interest and .016 .057 .011 .281 .779 Knowledge Sharing Product Importance -.091 .054 -.068 -1.678 .094 Quality Perception .077 .042 .071 1.825 .069 a. Dependent Variable: probability to consider buying store brand items in the future 238 Journal of Business Strategy and Execution Vol. 1 No.2 June 2009: 216 - 238