This document summarizes an undergraduate thesis that examines the impact of marketing mix elements (price, intensity of marketing activities, store image, and price deals) on brand equity in the bakery industry in Indonesia. The study uses brand awareness and brand image as mediating variables. A survey was conducted with 158 bakery consumers in Surabaya. Regression analysis with mediating variables was used to analyze the data. The results show that intensity of marketing activities does not significantly impact brand equity through brand awareness. Price and store image significantly affect brand equity through brand image, while intensity of marketing activities and price deals do not.

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ABSTRACT
Ivena Renata Chandra:
Undergraduate thesis
The Impact of Marketing Mix Elements toward Brand Equity through
Brand Awareness and Brand Image as Mediators in Bakery Industry in
Indonesia
As the factor accompanying the rise of GDP of people in Indonesia,
consumption habit in having meal is as well shifting from traditional staple to
wheat based product such as bakery products. Knowing from this phenomenon, it
is known that bakery industry in Indonesia is on the business’s concern recently.
The effort in having good brand equity in the consumer’s eyes surely will
bring long term profit for the companies that are playing in this industry. In order
to have a good brand equity, marketing mix elements which are price, intensity of
marketing activities, store image, and price deals are believed can be the effective
strategy in the business competition. Moreover, the existence of brand awareness
and brand image as mediators are also playing a big role in achieving good brand
equity.
This market research is conducted by spreading 158 questionnaires to
bakery consumers in Surabaya. This data is analyzed using regression with
mediating variable. The result is showing that intensity of marketing activities is
not significantly impacting brand equity through brand awareness. Additionally,
only price and store image give significant affect toward brand equity through
brand image whereas intensity of marketing activities and price deals are not.
Keyword:
Bakery Industry, Marketing Mix, Price, Intensity of Marketing Activities,
Store Image, Price Deals, Brand Awareness, Brand Image, Brand Equity.

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ABSTRAK
Ivena Renata Chandra:
Skripsi
Pengaruh Elemen-Elemen Marketing Mix terhadap Ekuitas Brand melalui
Kesadaran Merek dan Citra Merek sebagai Penengah di dalam Industri
Bakery di Indonesia
Sebagai fakor yang mengiringi naiknya GDP masyarakat Indonesia,
kebiasaan konsumsi juga bergeser dari makanan-makanan tradisional ke produk
yang berbahan tepung seperti bakery. Fenomena ini membuat industri bakery di
Indonesia menjadi sorotan baru-baru ini.
Memiliki ekuitas merek yang baik di mata konsumen tentu akan membuat
penjualan jangka panjang meningkat untuk perusahaan-perusahaan yang bermain
di bidang ini. Dalam pencapaian ekuitas merek yang bagus, marketing mix yang
terdiri dari harga, intensitas dari aktifitas pemasaran, citra toko, dan promosi harga
dipercaya dapat menjadi strategi yang efektif. Selain itu, kesadaran merek dan
citra merek juga memiliki peran besar dalam menjadi penengah.
Riset ini dilakukan dengan penyebaran kuesioner berjumlah 158 ke
konsumen bakery di Surabaya. Data yang diperoleh selanjutnya dianalisa lebih
lanjut menggunakan regresi dengan variabel mediator. Sebagai hasil, ditemukan
bahwa intensitas dari aktifitas pemasaran tidak memberikan efek signifikan
terhadap ekuitas merek yang diperantarai oleh kesadaran merek. Hasil lainnya
menjunjukan bahwa hanya harga dan citra merek yang mempengaruhi ekuitas
merek secara signifikan dengan perantara citra merek, sedangkan dengan
perantara citra merek, intensitas dari aktifitas pemasaran dan promosi harga tidak
memberikan hasil yang signifikan terhadap ekuitas merek.
Kata kunci:
Industri Bakery, Marketing Mix, Harga, Intensitas dari Aktifitas
Pemasaran, Citra Toko, Promosi Harga, Kesadaran Merek, Citra Merek,
Ekuitas Merek.

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TABLE OF CONTENTS
TITLE PAGE ............................................................................................ i
APPROVAL PAGE .................................................................................. ii
STATEMENT OF AGREEMENT ............................................................ iii
ACKNOWLEDMENT .............................................................................. iv
ABSTRACT ............................................................................................. vi
TABLE OF CONTENTS .......................................................................... viii
LIST OF TABLES .................................................................................... xi
LIST OF FIGURES .................................................................................. xiv
LIST OF EQUATIONS ............................................................................ xvi
LIST OF APPENDICES ........................................................................... xvii
1. INTRODUCTION
1.1. Research Background .................................................................... 1
1.1.1. Justification for The Research .............................................. 3
1.1.2. Statement of Research Problem ............................................ 5
1.2. Research Objectives ....................................................................... 6
1.3. Research Benefit ............................................................................ 6
2. THEORETICAL BACKGROUND ....................................................... 8
2.1. Concepts and Definitions ............................................................... 8
2.1.1. Price .................................................................................... 8
2.1.2. Intensity of Marketing Activities .......................................... 8
2.1.3. Store Image ......................................................................... 9
2.1.4. Price Deals .......................................................................... 10
2.1.5. Brand Awareness ................................................................. 10
2.1.6. Brand Image ........................................................................ 10
2.1.7. Brand Equity ........................................................................ 11
2.2. Relationship between Concepts ...................................................... 12
2.3. Summary of Relevant Research ..................................................... 14
2.4. Hypothesis ..................................................................................... 24
3. RESEARCH METHOD ........................................................................ 25
3.1. Type of Research Method .............................................................. 25
3.2. Description of Variables ................................................................ 27
3.2.1. Dependent Variable ............................................................. 27
3.2.1.1. Brand Equity ........................................................... 27

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3.2.2. Mediating Variables ............................................................. 28
3.2.2.1. Brand Awareness .................................................... 28
3.2.2.2. Brand Image ........................................................... 29
3.2.3. Independent Variable ........................................................... 29
3.2.3.1. Price ........................................................................ 29
3.2.3.2. Intensity of Marketing Activities.............................. 30
3.2.3.3. Store Image ............................................................. 31
3.2.3.4. Price Deals .............................................................. 31
3.3. Description of Data ........................................................................ 32
3.3.1. Type of Data ........................................................................ 32
3.3.2. Source of Data ..................................................................... 35
3.3.3. Sampling Method ................................................................ 36
3.4. Analytical Method ......................................................................... 38
3.4.1. Justification of Data ............................................................. 38
3.4.2. Statistical Methods ............................................................... 39
3.4.2.1. Classic Assumption Test ......................................... 40
3.4.2.2. Regression with Mediating Variable ........................ 43
4. ANALYSIS AND RESULTS ................................................................ 46
4.1. Type of Research Method............................................................... 46
4.1.1. Descriptive Statistics ............................................................ 46
4.1.2. Justification of Data ............................................................. 49
4.1.2.1. Independent Variable: Price .................................... 50
4.1.2.2. Independent Variable: Intensity of Marketing
Activities ................................................................ 50
4.1.2.3. Independent Variable: Store Image ......................... 51
4.1.2.4. Independent Variable: Price Deals .......................... 52
4.1.2.5. Mediation Variable: Brand Awareness .................... 53
4.1.2.6. Mediation Variable: Brand Image ........................... 54
4.1.2.7. Dependent Variable: Brand Equity .......................... 54
4.1.3. Classic Assumption Test ...................................................... 55
4.1.3.1. Multicollinearity Test .............................................. 56
4.1.3.2. Autocorrelation Test ................................................ 61
4.1.3.3. Heteroscedasticity Test ............................................ 65
4.1.3.4. Normality Test ........................................................ 74
4.1.4. Regression with Mediating Variable .................................... 86
4.1.4.1. T Test ...................................................................... 87
4.1.4.2. Sobel ....................................................................... 93
4.2. Discussions of the Results .............................................................. 96
4.2.1. The Impact of Intensity of Marketing Activities towards
Brand Equity through Brand Awareness .............................. 96
4.2.2. The Impact of Price towards Brand Equity through Brand
Image .................................................................................. 97
4.2.3. The Impact of Intensity of Marketing Activities towards
Brand Equity through Brand Image ..................................... 98
4.2.4. The Impact of Store Image towards Brand Equity through
Brand Image ........................................................................ 99
4.2.5. The Impact of Price Deals towards Brand Equity through

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Brand Image ........................................................................ 100
5. SUMMARY AND RECOMMENDATION ........................................... 101
5.1. Summary and Conclusions.............................................................. 101
5.2. Recommendations .......................................................................... 103
5.3. Limitations of the Research ............................................................ 104
5.4. Suggestions for Further Research.................................................... 105
BIBLIOGRAPHY...................................................................................... 106
APPENDICES........................................................................................... 109

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LIST OF TABLES
1.1. Most Populous Countries in the World with GDP Growth
Comparison ...................................................................................... 3
1.2. GDP Compositions by End User (2014) ........................................... 5
3.1. Classifications Questions .................................................................. 33
3.2. Target Questions .............................................................................. 34
3.3. Likert Scale ...................................................................................... 35
4.1. Reliability Statistics of Price ............................................................. 50
4.2. Item-Total Statistics of Price ............................................................ 50
4.3. Reliability Statistics of Intensity of Marketing Activities .................. 51
4.4. Item-Total Statistics of Intensity of Marketing Activities .................. 51
4.5. Reliability Statistics of Store Image .................................................. 51
4.6. Item-Total Statistics of Store Image .................................................. 52
4.7. Reliability Statistics of Price Deals ................................................... 52
4.8. Item-Total Statistics of Price Deals ................................................... 53
4.9. Reliability Statistics of Brand Awareness ......................................... 53
4.10. Item-Total Statistics of Brand Awareness ......................................... 53
4.11. Reliability Statistics of Brand Image ................................................ 54
4.12. Item-Total Statistics of Brand Image ................................................ 54
4.13. Reliability Statistics of Brand Equity ................................................ 54
4.14. Item-Total Statistics of Brand Equity ................................................ 55
4.15. Multicollinearity Coefficient Correlation Table 1 ............................. 56
4.16. Multicollinearity Coefficients 1 ........................................................ 57
4.17. Multicollinearity Coefficient Correlation Table 2 ............................. 57

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4.18. Multicollinearity Coefficients 2 ........................................................ 58
4.19. Multicollinearity Coefficient Correlation Table 3 ............................. 59
4.20. Multicollinearity Coefficients 3 ........................................................ 59
4.21. Multicollinearity Coefficient Correlation Table 4 ............................. 60
4.22. Multicollinearity Coefficients 4 ........................................................ 61
4.23. Autocorrelation Coefficients 1 .......................................................... 62
4.24. Autocorrelation Coefficients 2 .......................................................... 62
4.25. Autocorrelation Coefficients 3 .......................................................... 63
4.26. Autocorrelation Coefficients 4 .......................................................... 63
4.27. Autocorrelation Coefficients 5 .......................................................... 64
4.28. Autocorrelation Coefficients 6 .......................................................... 65
4.29. Heteroscedasticity Coefficients 1 ...................................................... 67
4.30. Heteroscedasticity Coefficients 2 ...................................................... 68
4.31. Heteroscedasticity Coefficients 3 ...................................................... 69
4.32. Heteroscedasticity Coefficients 4 ...................................................... 71
4.33. Heteroscedasticity Coefficients 5 ...................................................... 72
4.34. Heteroscedasticity Coefficients 6 ...................................................... 73
4.35. Descriptive Statistics 1 ..................................................................... 76
4.36. Descriptive Statistics 2 ..................................................................... 78
4.37. Descriptive Statistics 3 ..................................................................... 80
4.38. Descriptive Statistics 4 ..................................................................... 81
4.39. Descriptive Statistics 5 ..................................................................... 83
4.40. Descriptive Statistics 6 ..................................................................... 85
4.41. T-test Coefficients 1 ......................................................................... 88

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4.42. T-test Coefficients 2 ......................................................................... 89
4.43. T-test Coefficients 3 ......................................................................... 90
4.44. T-test Coefficients 4 ......................................................................... 91
4.45. T-test Coefficients 5 ......................................................................... 92
4.46. T-test Coefficients 6 ......................................................................... 93

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LIST OF FIGURES
1.1. FDI, Net Inflows (BoP, Current US$) ............................................... 4
2.1. Relationships between Concepts ....................................................... 12
2.2. Research Model of Journal 1 ............................................................ 15
2.3. Research Model of Journal 2 ............................................................ 17
2.4. Research Model of Journal 3 ............................................................ 19
2.5. Research Model of Journal 4 ............................................................ 21
2.6. Research Model of Journal 5 ............................................................ 23
3.1. First Model of Regression Test ......................................................... 43
3.2. Second Model of Regression Test .................................................... 43
4.1. Gender Distributions of the Respondents .......................................... 46
4.2. Occupation Distributions of the Respondents ................................... 46
4.3. Residence Distributions of the Respondents ..................................... 47
4.4. Average Expenditure per month Distributions of the Respondents .... 47
4.5. Frequency in Consuming Bakery Product per month Distributions
of the Respondents............................................................................ 48
4.6. Most Consumed Bakery Brand Distributions of the Respondents ..... 49
4.7. Scatterplot of Intensity of the Impact of Marketing Activities
towards Brand Equity........................................................................ 66
4.8. Scatterplot of the Impact of Intensity of Marketing Activities
towards Brand Awareness ................................................................. 67
4.9. Scatterplot of the Impact of Intensity of Marketing Activities and
Brand Awareness toward Brand Equity............................................. 69
4.10. Scatterplot of the Impact of Price, Intensity of Marketing Activities,
Store Image, and Price Deals toward Brand Equity ........................... 70
4.11. Scatterplot of the Impact of Price, Intensity of Marketing Activities,
Store Image, and Price Deals toward Brand Image ........................... 71

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4.12. Scatterplot of the Impact of Price, Intensity of Marketing Activities,
Store Image, Price Deals, and Brand Image toward Brand Equity ..... 73
4.13. Histogram of the Impact of Intensity of Marketing Activities towards
Brand Equity .................................................................................... 75
4.14. Normal P-P Plot of Regression Standardized Residual of the Impact
of Intensity of Marketing Activities towards Brand Equity................ 75
4.15. Histogram of the Impact of Intensity of Marketing Activities towards
Brand Awareness ............................................................................. 77
4.16. Normal P-P Plot of Regression Standardized Residual of the Impact
of Intensity of Marketing Activities towards Brand Awareness.......... 77
4.17. Histogram of the Impact of Intensity of Marketing Activities and
Brand Awareness toward Brand Equity ............................................ 79
4.18. Normal P-P Plot of Regression Standardized Residual of the Impact
of Intensity of Marketing Activities and Brand Awareness toward
Brand Equity..................................................................................... 79
4.19. Histogram of the Impact of Price, Intensity of Marketing Activities,
Store Image, and Price Deals toward Brand Equity ........................... 80
4.20. Normal P-P Plot of Regression Standardized Residual of the Impact
of Price, Intensity of Marketing Activities, Store Image, and Price
Deals toward Brand Equity................................................................ 81
4.21. Histogram of the Impact of Price, Intensity of Marketing Activities,
Store Image, and Price Deals toward Brand Image ........................... 82
4.22. Normal P-P Plot of Regression Standardized Residual of the Impact
of Price, Intensity of Marketing Activities, Store Image, and Price
Deals toward Brand Image ................................................................ 83
4.23. Histogram of the Impact of Price, Intensity of Marketing Activities,
Store Image, Price Deals, and Brand Image toward Brand Equity ..... 84
4.24. Normal P-P Plot of Regression Standardized Residual of the Impact
of Price, Intensity of Marketing Activities, Store Image, Price Deals,
and Brand Image toward Brand Equity.............................................. 85

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LIST OF EQUATIONS
Equation 3.1. Green’s Formula .................................................................. 38
Equation 3.2. Regression of LM Test ........................................................ 41
Equation 3.3. Skewness Ratio .................................................................... 42
Equation 3.4. Kurtosis Ratio ..................................................................... 42
Equation 3.5. Z Value Formula ................................................................. 44
Equation 3.6. Z Value Formula ................................................................. 44
Equation 4.1. Skewness Ratio .................................................................... 74
Equation 4.2. Kurtosis Ratio ..................................................................... 74
Equation 4.3. Z Value Formula ................................................................. 87
Equation 4.4. Z Value Formula ................................................................. 87

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LIST OF APPENDICES
A. Research Schedule ............................................................................... 109
B. List of Data .......................................................................................... 113
C. Detailed Data Calculations ................................................................... 131
D. Detailed Graphs ................................................................................... 165
E. Questionnaire ....................................................................................... 168