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Tugas Akhir - 2013 THE INFLUENCE OF INFLUENCER, INTERACTION/CONTENT, WORD OF MOUTH AND TESTIMONY TOWARD PURCHASE DECISION PROCESS OF MACBETH PRODUCT IN BOGOR Yudhitya Reza Tri Pamungkas¹, Ir. Tjahjono Djatmiko², Mba³ ¹Manajemen (Manajemen Bisnis Telekomunikasi & Informatika), Fakultas Ekonomi Bisnis, Universitas Telkom Abstrak ABSTRACT Macbeth is a company that sells shoes, which is inspired by music and other arts. Tom Delonge founded Macbeth in 2002. Macbeth sales were decreased in 2010 until 2011. Therefore, the role of social media network that is used by Macbeth should be enhanced in order to increase the purchase decision process of Macbeth’s customers in Bogor. This research is to analyze the effect of influencer, interaction / content, word of mouth and testimony toward purchase decision process of Macbeth product in Bogor. There are several research types that are used in this research which are quantitative method, descriptive analysis and path analysis. The chosen technique that is used is non-probability sampling. The sampling technique is purposive sampling, because the respondent is a person who knows Macbeth product and intend to buy Macbeth product through social media networking. Based on the analysis, this study is qualified for validity test, reliability test and then passed to path analysis. The coefficient determinant Value is 47.8%, it means the variable influencer, interaction / content, word of mouth and testimony affected the purchase decision process by 47.8%, while the remaining 52,2% can be affected from the other variables. In coefficient path individually tests, it is shown significant < 0.05. It means, the variable influencer (x1), interaction / content (x2), word of mouth (x3) and testimony (x4) influence purchase decisions (y). From the customer point of view, an influencer, interaction/content, word of mouth and testimony need to be improved. Macbeth needs to choose the Influencer who has the ability to persuade the customer to purchase Macbeth product. By doing this, the customer will prioritize Macbeth products and the sales will be increased. Interactions with customers are needed to influence them to purchase the products. Content in social media network that Macbeth shares should be improved in order to attract the customers. Strong interaction and good content will create strong relationships with consumers. Word of mouth and testimony are needed to persuade and convince customers to purchase products. Keyword: Social Media, Macbeth, Clothing & Shoes, Influencer, Interaction / content, Word of Mouth, Testimony, Purchase Decision Fakultas Ekonomi Bisnis Powered by TCPDF (www.tcpdf.org) Program Studi S1 Manajemen (Manajemen Bisnis Telekomunikasi & Informatika) Tugas Akhir - 2013 CHAPTER I INTRODUCTION 1.1 COMPANY PROFILE 1.1.1 COMPANY OVERVIEW Macbeth is a company that sells shoes, which is inspired by music and other arts. Macbeth founded in 2002 by a musician who got Platinum award, Tom Delonge. Tom Delonge is known as a vocalist and guitarist in the Blink-182 band, Box Car Racer and Angel & Airwaves. There are many Indonesian Musicians who wear Macbeth products. In the beginning, Macbeth only employs 30 people and most of them are families and close friends. They are good in developing products and advance from fashion, which is inspired from music in southern California. The first kind of Macbeth shoes that is introduced is named Eliot that is boost Macbeth popularity. Macbeth tried to reach the youth market by using endorser from a band with genres of punk, pop punk, emo, hardcore and posthardcore, such as Angels and Airwaves, Rocket Rockers and Saint Loco. Beside that, Macbeth has a social mission in designing a character of shoes, which is Macbeth vegan. Macbeth vegan is made from 100% of the non - animal material. Macbeth have mission to eliminate the violence on animals while the material is imported from PETA (People For The Ethical Treatment Of Animals), an organization of antiviolence on animals. Macbeth achieved the award in 2007, for not using animal material for their products. It means they are using organic canvas and denim from Fakultas Ekonomi Bisnis 1 Program Studi S1 Manajemen (Manajemen Bisnis Telekomunikasi & Informatika) Tugas Akhir - 2013 vegetable fibers, synthetic water-based glues, synthetic leather and natural rubber. Macbeth awarded as “Best Vegan Skate Shoe” by PETA for their unique design and material used in their products. Now Macbeth has already reached an enormous youth market. Macbeth issues their new product four times in a year, which is follow season in Europe. Macbeth is currently using social media networks such as MySpace, Facebook and Twitter, in order to spread their coverage. Figure 1.1 Facebook of Macbeth Source: https://www.facebook.com/macbethfootwear?ref=ts&fref=ts Macbeth footwear (Facebook) and Macbeth Indonesia (Twitter) is collaboration to sell Macbeth products. That is why I used Macbeth Indonesia for Twitter analyzing, while Macbeth Footwear for Facebook analyzing. Fakultas Ekonomi Bisnis 2 Program Studi S1 Manajemen (Manajemen Bisnis Telekomunikasi & Informatika) Tugas Akhir - 2013 1.1.2 Product of Macbeth These are several Macbeth products: 1. Style: Eliot Materials: black/cement Eliot in Recycled Canvas – Macbeth’s modern classic updated with a split pennant quarter logo. The Eliot was first shoe and remains one of Macbeth successful styles with its low profile, ultra light weight upper – vegan. Figure 1.2 Source: http://www.macbeth.com/products/details/eliot/blackcement/491 2. Style: Brighton Fakultas Ekonomi Bisnis 3 Program Studi S1 Manajemen (Manajemen Bisnis Telekomunikasi & Informatika) Tugas Akhir - 2013 Materials: Black/canvas Brighton in Suede / Canvas – a modern update to a classic t-toe jogger featuring a completely new outsole with medial arch wrap as well as an exposed molded Eva midsole. Hidden within the heel of the Eva midsole is an additional soft cushion pocket for added heel impact reduction. “Zero Seam” lining construction with a small amount of padding allows the upper form to your foot like the shoe was custom made to fit your foot. Figure 1.3 Source: http://www.macbeth.com/products/details/brighton/blackwhite/532 3. Style: Mathew Materials: Black/white Matthew in classic canvas / Recycled Canvas – The Matthew its name from Macbeth founder Thomas Matthew Delonge. Its extremely low profile vulcanized look is a great next step for the Eliot customer – vegan. Figure 1.4 Source: http://www.macbeth.com/products/details/matthew/blackwhite/517 Fakultas Ekonomi Bisnis 4 Program Studi S1 Manajemen (Manajemen Bisnis Telekomunikasi & Informatika) Tugas Akhir - 2013 4. Style: Langley Materials: Black/cement Langley in Classic Canvas – The Langley is a classic vulcanized style, with some additional comfort features added in. Our construction includes a premium textile lasting board which makes the entire shoe more flexible, and we added a layer of soft cushioning foam hidden under our custom molded insole so you will love wearing them all day long – Vegan. Figure 1.5 Source:http://www.macbeth.com/products/details/langley/darkgreywhite/421 2 5. Style: Pendleton Materials: Black/white Pendleton in Synthetic Nubuck – Clean lines are the name of the game with the Pendleton. This vulcanized style takes a Fakultas Ekonomi Bisnis 5 Program Studi S1 Manajemen (Manajemen Bisnis Telekomunikasi & Informatika) Tugas Akhir - 2013 minimalist approach to creating a classic design and there are only 4 main panels in the upper design. Whether you are dressing the shoe up or down, there is no clutter here, you will get a great look every time. Not to mention the Pendleton is incredibly comfortable because of the hidden layer of cushioning foam under our custom molded insoles and the premium textile lasting board that adds overall flexibility while you are walking – Vegan. Figure 1.7 Source: http://www.macbeth.com/products/details/pendleton/blackcement/488 These are several prices of Macbeth products: Table 1.1 Price of Macbeth products Source:http://www.loserkids.co.id/index.php?route=product/search&keywor d=fall%20holiday%202012&category_id=116 Fakultas Ekonomi Bisnis 6 Program Studi S1 Manajemen (Manajemen Bisnis Telekomunikasi & Informatika) Tugas Akhir - 2013 From the explanation above, I choose title of “the influence of influencer, interaction / content, word of mouth and testimony toward purchase decision process of Macbeth product in Bogor City” as my research object. 1.2 RESEARCH BACKGROUND Social media networks can be used to communicate with friends, family, work partner and can be used as an online shopping. There are many people in Indonesia using social media networks to shop. It makes many of brand owners in Indonesia promoting through social media networks. They are using several social media platforms such as Blog, Facebook, Twitter and YouTube. Facebook and twitter are two sites that are mostly accessed in Indonesia. The growth of Internet users in Indonesia is surprising. According to data from research of Web Company, there are 40 million Indonesia people using the Internet. Based on web research, it shows Indonesia people are on the big three from the largest customer of Facebook and Twitter in the world. By using social media network, users can access information through Internet without spending so much money. Tight competition makes the company keep on making new innovation in strategy. Many products and services available on the market is the impact. They keep promoting their products and services through social media. A marketing strategy that is fit to use in this era is marketing digital. One of marketing strategy that the company could do is promotion. Promotion is one of the elements in the marketing mix that is used by the company to communicate product and service to their target customer. The biggest Fakultas Ekonomi Bisnis 7 Program Studi S1 Manajemen (Manajemen Bisnis Telekomunikasi & Informatika) Tugas Akhir - 2013 impacts are increasing in sales and make it easier for the company to promote their product and services. For the company it becomes easier to develop a strategy that engages the right people in the right place at the right time and know what product they should sell to the their customers. Macbeth uses twitter as a media promotion tool and communicate to the customers in order to get more customers. Beside that, Macbeth uses twitter as a tool to attract indie music lovers. Macbeth uses Facebook as a media promotion tool to the customer and to share the information in the form of price and photo about Macbeth product such as shoes, shirt and sunglasses. Macbeth uses MySpace to promote the video that related to Macbeth product and promoting the band that endorsed by Macbeth through video. Macbeth has specific target audiences and Macbeth have fans in Indonesia that is called "Griffon’s Army" Indonesia, who are teenagers and grew up people. Beside that, based on the data from the social media networks account, it is showing that Macbeth’s fans are spread in several cities, such as Bali, Bandung, Jakarta, Bekasi, Malang, Banjarmasin, Makassar, Medan, Solo Pekanbaru, Purwokerto, Samarinda, Surabaya, Tangerang and Yogyakarta. From the social media networks shown the sum of Macbeth’s fans as follows: My space Twitter Facebook 63858 friends 29,921 followers 535,563 likes http://www.myspace .com/macbeth http://twitter.com /MacbethIndo http://www.facebook.com /macbethfootwear?fref=ts Table 1.2 Social Networks of Macbeth Source: data processed Fakultas Ekonomi Bisnis 8 Program Studi S1 Manajemen (Manajemen Bisnis Telekomunikasi & Informatika) Tugas Akhir - 2013 The data above shows the magnitude of enthusiasts and Macbeth user who use social media networks and could be concluded, Macbeth use social media networks as promotion media tool in promoting the product to the customer. By using social media networks, Macbeth could wider the coverage of the target market. That is why I do research on social media role toward the purchase decision process of Macbeth product in Bogor. It can be seen by online sales of Macbeth product from January 2008 until December 2011, as follows: Table 1.3Volume of Online Sales Macbeth and Vans Product from January 2008 – December 2011 2011 421,200,000 111,000,000 234,000,000 133,000,000 2010 Vans 167,000,000 140,000,000 2009 Macbeth 78,000,000 128,000,000 2008 0 200,000,000 400,000,000 600,000,000 Source: Forbidden Store.BinaMarga Street, No.1D Baranangsiang Bogor 2011. From online sales,it can be seen that Macbeth is declining on sales start from 2010 until 2011. Therefore, the roles of social media are required to increase Macbeth sales in Bogor city. Fakultas Ekonomi Bisnis 9 Program Studi S1 Manajemen (Manajemen Bisnis Telekomunikasi & Informatika) Tugas Akhir - 2013 In 2011,population of Bogor city is 870.197, while in Bandar Lampung is 1.364.759. Bandar Lampung also do not have a Macbeth official store. According to the sales, even though Bandar Lampung does not have a Macbeth official store, the sales are still higher compared to Bogor city. These are the sales: Table 1.4 sales of Macbeth product in Bogor city and Bandar Lampung Bogor city Bandar Lampung 2009 140.000.000 2010 133.000.000 2011 111.000.000 118.779.000 160.780.000 174.085.000 Based on the problem above, the author chooses the title “THE INFLUENCE OF INFLUENCER, INTERACTION / CONTENT, WORD OF MOUTH AND TESTIMONY TOWARD PURCHASE DECISION PROCESS OF MACBETH PRODUCT IN BOGOR CITY”. 1.3 FORMULATION OF THE PROBLEM Formulation of the problem in this research is growing of technology, which force the company to be more perceptive in using the sophistication of technology to promote the product. Therefore, the company should have a good strategy by using social media. From the formulation of the problem, come up research question as follows: 1. What and how is the influence of influencer, interaction / content, word of mouth and testimony that used by Macbeth? 2. What and how is the purchase decision process in Bogor City? Fakultas Ekonomi Bisnis 10 Program Studi S1 Manajemen (Manajemen Bisnis Telekomunikasi & Informatika) Tugas Akhir - 2013 3. How the influence of influencer, interaction / content, word of mouth and testimony can affect toward the purchase decision process of Macbeth product in Bogor City? 1.4 PURPOSE OF RESEARCH The purpose of this research is to obtain the data and information needed in this research with the purpose as follows: 1. Analyzing the effect of the influence of influencer toward a purchase decision. 2. Analyzing the effect of interaction / content toward a purchase decision. 1.5 3. Analyzing the effect of word of mouth toward a purchase decision. 4. Analyzing the effect of testimony toward a purchase decision. USE OF RESEARCH The use of this research is expected to help and give big impact to the development of science. Related to the research that is conducted, the use of this research is divided into two, which are theoretical and practical functions. 1.5.1 Theoretical Function 1. The result of this research is expected to give information and develop knowledge in Management Business Telecommunication and Informatics that is related to the influence of influencer, interaction/content, word of mouth and testimony toward the purchase decision procedure. Fakultas Ekonomi Bisnis 11 Program Studi S1 Manajemen (Manajemen Bisnis Telekomunikasi & Informatika) Tugas Akhir - 2013 1.5.2 Practical Function 1. For Researcher The researcher could implement the knowledge that obtained in this research and could add the knowledge that related with Management Business Telecommunication and Informatics. 2. For Company This research could be used as a reference material to Macbeth Company and can be used to improve the company’s strategy. 3. For Institute Management Telkom Bandung This study expected to give more knowledge in the library and as a reference material for students who want to learn about marketing management, especially the influence of influencer, interaction /content, word of mouth and testimony toward purchase decision process. 1.6 SYSTEMATICS OF WRITING Formulation and writing in this research are proper and can be determined as follows: CHAPTER I PRELIMINARY This chapter contains of formulation and explanation toward overview of object research, background research, formulation of the Fakultas Ekonomi Bisnis 12 Program Studi S1 Manajemen (Manajemen Bisnis Telekomunikasi & Informatika) Tugas Akhir - 2013 problem, purpose of research, use of research, systematic of the writing of the research conducted. CHAPTER II LITERATURE STUDY AND SCOPE OF RESEARCH This chapter contains a summary of theory, previous research, framework, research hypothesis and scope of research that related to the problem that researched by the author. CHAPTER III RESEACH METHODOLOGY This chapter contains the method that is used in this research and can be adapted with type of research, operational variables, stages of research, population and sample, data collection, and data analysis techniques. CHAPTER IV RESULT AND DISCUSSION This chapter provides about the result of research that already conducted with the uses of method that have been set. CHAPTER V. CONCLUSION AND RECOMMENDATION This chapter contains of conclusion about the result of research and suggestion for the company. Fakultas Ekonomi Bisnis 13 Program Studi S1 Manajemen (Manajemen Bisnis Telekomunikasi & Informatika) Tugas Akhir - 2013 Fakultas Ekonomi Bisnis Powered by TCPDF (www.tcpdf.org) 14 Program Studi S1 Manajemen (Manajemen Bisnis Telekomunikasi & Informatika) Tugas Akhir - 2013 CHAPTER V CONCLUSION AND SUGGESTION 5.1 Conclusion Based on the results and analysis that has already done in this research, there are several conclusions that can provide an answer to the problem formulation within this research: 1. In this research the social media network is determined by the characteristics of influence, interaction / content, word of mouth and testimony variable. Influencer (X1) is classified as good category, which is 74.66% and the best result of influencer is prominence in the market or community, which is 77.50%. Interaction / content (X2) classified as good category, which is 74.16% and measured by three indicators. The interaction between content creators and users is the best result, which is 75.50%. Word of mouth (X3) classified as good category, which is 73.50% and measured by three indicators, with the best is the strength with a value of 75.75%. Testimony (X4) classified as good category, which is 70.58% and measured by three indicators. The best result from testimony’s indicator is customer feedback commentaries, which is 75.50%. Based on the result above, from customer point of view about influencer, they want the influencer who is prominent in the market or community. For the interaction / content from customer point of view, that they want the interaction / content on social media network is quick and listen carefully in response to the customer question. For Word of mouth, the customers know about social media network with other people, Fakultas Ekonomi Bisnis 118 Program Studi S1 Manajemen (Manajemen Bisnis Telekomunikasi & Informatika) Tugas Akhir - 2013 which mean the message itself is well spread. For testimony, customers want to buy the product after they saw other customers say anything positive about the product in social media. 2. In this research the variable Y or the purchase decision process is measured by three indicators, which are finding information, benefit consideration and purchase priority. Based on the result about the purchase decision process, classified as good category, which is 66.91% and the best result is finding information with a value of 69.50%. It happens, because the customers are affected by influencer who wears Macbeth product and the interaction between content creators and users through Facebook and Twitter. In addition tie strength as one of the indicators of word of mouth that is showing the relationship with the customer. Testimony can affect customers to find the information and finally purchase the products. In other words, the influencer of Macbeth has the ability to deliver the message from product and also the influencer of Macbeth is good in making them to become interested in finding about the product of Macbeth. 3. Based on the result of path analysis, the simultaneous test of influencer (X1), interaction / content (X2), word of mouth (X3) and testimony (X4) influence on purchase decision with a value of Rsquare which is 47.8% and while the remaining from the R-square or the residual is 52.2%. It means the influencer, interaction / content, word of mouth and testimony in the influence on purchase decision classified as high. Because, there are many other variables influencing purchase decision. Those four variables are influencing purchase decision influenced by 47.8%. It means that, those four variables are highly influenced on purchase decision. From individual test, the best result is testimony with a value of 44.4% and Fakultas Ekonomi Bisnis 119 Program Studi S1 Manajemen (Manajemen Bisnis Telekomunikasi & Informatika) Tugas Akhir - 2013 from direct and indirect influence the best result is testimony with a value of 43.2%. It means that, testimony is needed by Macbeth to persuade the customer in purchasing the product. 5.2 Suggestion 1. For Other Researcher For other researcher who wants to research about social media can use the other elements of social media, such as: influence of publisher reached, followers, comments, tags added, registration of third-party social logins, responses to socially posted events. While for the dependent variables, the other researcher can use brand cocreation and brand awareness. 2. For The Company a. Based on the analysis in interaction / content, “Twitter and Facebook account of Macbeth always update about Macbeth product” is the smallest than the other. The interaction / content to the customer is good, but not good enough to make the customers more interest in purchasing Macbeth product. If this situation continues, Macbeth can lose their customers. It is happening, because their customers feel the interaction and content is not good enough. They have less interest in purchasing Macbeth’s products. Macbeth needs to make the customers interest with the information that Macbeth shares about their product. In other words, Macbeth needs to make good content in order to strengthen the relationship with the customer, it will help Macbeth to increase the purchase decision of Macbeth customer when the customer felt already enough with Fakultas Ekonomi Bisnis 120 Program Studi S1 Manajemen (Manajemen Bisnis Telekomunikasi & Informatika) Tugas Akhir - 2013 information about Macbeth product. Macbeth also can interact more with their customers. By interacting more with their customers, Macbeth will also strengthen the relationship with their customers. b. Based on the analysis, Macbeth customer does not prioritize the Macbeth product. In other words, Macbeth customers are actually keeping finding information itself, but they do not prioritize it to purchase Macbeth product. It happens, because people do not convince to prioritizing in the purchase of Macbeth product. It is not good for Macbeth, because Macbeth can keep losing in sales since their customers does not prioritize to purchase Macbeth product. So, Macbeth needs to improve the purchase priority of their customers. Macbeth can improve it, by convincing their customers to purchase their product. It can be done by using good influencer, interact with their customers and make a good content, spreading a better the message and information, and have a good information and convention of their customers about Macbeth product. c. The smallest result from individual test is interaction/content. Macbeth needs to make the customer interest with the information that Macbeth shares about their product. In other words, Macbeth needs to make good content in order to strengthen the relationship with the customer. It will help Macbeth to increase the purchase decision of Macbeth customer. 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