PRODUCT AND PRICE: THE IMPACT ON CONSUMER’S INTENTION TO PURCHASE A GSM PHONE

., Yudit (2005) PRODUCT AND PRICE: THE IMPACT ON CONSUMER’S INTENTION TO PURCHASE A GSM PHONE. S2 thesis, UAJY.

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Abstract

YUDIT (2005). Product and Price: the Impact on Consumer's Intention to Purchase a GSM Phone. Yogyakarta: Magister Management Programme, Atma Jaya University. The consumer decision making is the crucial part in consumer behavior as well as in marketing. The marketers must be able to identify the aspects that affect the consumer's willingness to buy the product they offer. As proposed by Zeithaml (1988), the consumer's intention to purchase is determined by the intrinsic and extrinsic cue of the product. The intrinsic cue is the product itself while the extrinsic cue is the product related cues but not the product itself like price, channels of distributions and promotion. However, the study only focuses on the impact of product as the intrinsic cue and price as the extrinsic cue on consumer's intention to purchase a GSM phone. Thus, this thesis is aimed to find out and to analyze the impact of product and price dimensions on consumer's intention to purchase a GSM phone. The dimensions of a product are practicality, functionality, performance, durability, serviceability and prestige. Furthermore, the dimensions of the price are money, time and effort. In accordance to the objective, a hypothetico-deductive study is applied to prove the hypotheses. As a scientific study, the analysis is based on data that are collected regarding two characteristics of the empirical study reliability and validity. Moreover, the data used in the analysis have met the requirements for the linear regression namely normality, autocorrelation, multi-collinearity and heteroscedaticity. There are 239 respondents involved in the study. They are chosen because they have met the predetermined criteria for the study. Based on the regressed test to the data, the product dimensions do impact the consumer's intention to purchase significantly. On the other hand, the price dimensions do not impact the consumer's intention to purchase a GSM phone. For the product dimensions, practicality is the only dimension that does not enhance the intention proven by the level of significance 29.5%. For the price dimensions, money is the only dimension that impacts the consumer's intention shown by the level of significance 5%. The other dimensions, time and money, do not impact the consumer's intention to purchase a GSM phone proven by the level of significance 10.6% and 16.2% respectively. In short, the findings reveal that the product as the intrinsic cue has more impacts than price as the extrinsic cue on consumer's intention.

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