Muhammad Harun Al Rasyid
Faculty of Management and Business
Bogor Agricultural University, Indonesia
E-mail: mharunalrasyid91@gmail.com
Lilik Noor Yuliati
Faculty of Human Ecology
Department of Family and Consumer Sciences, Indonesia
E-mail: lilik_noor@yahoo.co.id
Agus Maulana
Faculty of Management and Business
Bogor Agricultural University, Indonesia
E-mail: agus.maulana0508@gmail.com
Submission: 16/10/2016
Revision: 21/11/2016
Accept: 08/01/2017
ABSTRACT
PT
Eco Nature Multiindo is a company which operating in the service and food
processing. Hen's Instant Omelette is one form of innovative product that exist
in Indonesia. In Indonesia, there is no competitor of Hen's product so Hen's
became the first of instant egg in market. Response of consumer to this product
is quite good, it is can be seen from the sale of products that have been sold
to 6.000 bottles for 8 months. But it is still far from the company target
,which is targeting 7.500 bottles per month in accordance with market potential
and company's production capacity 300 bottles a day. The purpose of this study
are (1) to analyze the life style of Hen's Instant Omelette consumer (2) to
analyze the influence of lifestyle, product innovation, and marketing mix of
Hen's Instant Omelette product towards purchasing decision (3) to formulate
managerial implication for the company.
The
results of the factor analysis indicates that the user segments of Hen's
Instant Omelette consists of three segments: modern, clasic, and trendy.
Analysis results of SEM indicates the variable that influence purchasing
decision is Product Innovation which consists of Relative Advantages,
Compatibility, Complexity, Divisibility, Communicability.
Keywords: marketing mix, lifestyle,
product innovation, segmentation, SEM
1. INTRODUCTION
PT Eco Nature Multiindo is a company engaged in service and food
processing. One of the products are Hen's Instant Omelette. Hen's Instant
Omelette is one form of innovative products in Indonesia. Therefore in
Indonesia, Hen’s became the firts product of instant egg. Hen's product has been
marketed since 2015 using an online
marketing system, exhibitions and fairs.
The main target of these products is
mountaineers and travelers. Their frequently travel lifestyle and want a
practice products seems suitable as a target consumer. The consumer response to
this product is quite nice, it has seen from the sale of products that have been sold
6,000 bottles for 8 months.
But still far from company target which has ta rgeting sales of 7,500
bottles per month in accordance to potential market and the company's
production capacity of 300 bottles per day. This is happens due to the sales of
the product to target consument and the purchase of products is still low.
The sales target it self measured by the ability of production capacity
per month and observed the total of product segmentation. Until now those
products selling deemed still not reach maximum level .
From the problems above we need to make further observation to t arget consumer. Therefore, researchers
conducted a study to the mountaineer and traveler who is expected as the target
consumer of Hen's Instant Omelette product.
Based (https://www.facebook.com/groups/256852310141/)
data obtained from the communities listed from indonesia mountaineers group on facebook
where there are about 19.692 active members in that group and often have a discussions
about climbing activities.
The amount of climbers does
not include the active climber who does not join the group because not all mountaineers
use facebook. In addition, number of mountaineers can also be predicted from
instagram. Instagram account of @id_pendaki has the highest number of followers
that 189.187 in category of mountain climbers.
From the preliminary study filled out by 178 mountaineers and travelers
consist of 87 male and 91 female showed that the major characteristics of
mountaineer and traveler is 78% because of hobby, which has the purpose for
recreation, sport, foster a sense of nationalism, existence, and others.
Most climbers is between age of 20 -30 years with an occupation as
students or private employees. It reinforces that mountain climbing activity is
currently gaining popularity among young people and has made these activities
as a hobby and lifestyle.
Introductory study also showed that climb ing activity is usually done in 3 days. These activity requires
quite a lot of food supplies. Food supplies is the most crucial problem because
if it too much it will make the climber have heavier loads during the climbing
activity.
Therefore, they usually divide the
supplies into the category of beverages, carbohydrate foods and protein foods. Rice
and eggs is the most common food for carbohydrate foods and protein foods that the
climbers usually brought. These combination of foods could maintain their stamina
during the activity. But the negative side from these food is, it easy to be
rotten and broken and also heavy to carry and difficult to serve.
Most of climbers want a fast food products which is more practice to
solve their problem. Currently , new product of Hen's Instant Omelette is able
to offer convenience for mountaineers and travelers and will definetely solve
their problem. Hen's Instant Omelette is also intended for those who love the
practicality and convenie nce in egg consumption.
Therefore, the scope of this study will be limited to the link age between
lifestyle, product innovation and mix marketing to the purchasing decision.
According to Méndez et al. (2013) lifestyle concept has been successfully used
in the field of marketing communication to affect consumption patterns, thereby
it's important to understand about consumer behavior and the factors that
influence their purchasing patterns to fulfill their needs.
Rahayu and Anggraini (2009) suggested that th e effect of product
innovation on purchasing decisions have a positive influence on purchase
decisions. According Ulus (2013) proved that the product, price, location, and
the simultaneous promotion have a significant and positive effect on purchasing
decisions.
All these things are important to investigate to observe the segmentations
of users based on their lif estyle and observe the relationships between lifestyle,
product innovation and mix marketing to purchasing decision which is currently
unknown by the company. A further observation for all aspects which already
mentioned above perceived need to be assessed for new product. So, it will be able to provide an information needed
by the company to make and marketing the product right on target.
2. THEORETICAL FRAMEWORK
2.1.
The
relation between lifestyle on purchasing decisions
The study of consumer behavior, psychographics or lifestyle has become an
accepted method of segmentation, particularly in the consumer market (BARRY;
WEINSTEIN, 2009). One of the factors that determine the segmentation can be
seen from the lifestyle.segmentation lifestyle focuses on relationship between
the brand and the interest of customers in form of values that made based on
the needs.
According to Méndez et al. (2013) lifestyle concept has been successfully
used in the field of marketing communication to affect consumption patterns so
it's important to understand consumer behavior and the factors that influence
their purchasing patterns to meet the needs.
A good
instrument is needed to measuring the people lifestyle. Which in this case was
made by Haryanto (2005) in his research that in the literature review indicated
that the three approaches to explore the lifestyle profiles is by analytical and synthesis approach, Value and
Lifestyle (VALS), Activities, Interests and
Opinions (AIO) approach.
According to another studies (KAYNAK; KARA, 2001) lifestyle is defined as a pattern of where
people live and spend their time and money. The Importance models of VALS
(Value and Lifestyle) and its relevance to consumer purchasing behavior has
been explored by various researchers. Based on these studies can be said that the
lifestyle influence on purchase decisions, so research approach VALS II of Stanford
research institute (SRI) using 35 questions about your lifestyle.
2.2.
The
relationship between product innovation to the purchasing decision
Product innovation is a new product based on the expectations of
consumers. On the dynamic business environment it will have an impact on
changing tastes and preferences of customers. These changes requires innovation
and creativity of each organization in order to enhance existing products and
develop new products in order to maintain the viability and profitability of
the company (TJIPTONO, 2008).
Rahayu and Anggraini (2009) use five points to
me asure product innovation :
Rahayu and Anggraini (2009) also explain that
the effect of product innovation to purchasing decisions have a positive
influence on purchase decisions. Supported by (ZHANG et al. 2009) explain
that wherein, when consumer understands that
the new products has more benefits, they tend to buy more and be able to
maintain the position of products on market.
Based on these studies also concluded that the in
fluence of product innovation to the purchase decision can be observed by five
characteristics : relative advantage, compatibility, complexity, divisibility ,
and communicability.
2.3.
The
relationship between the mix marketing to purchasing decision
The mix marketing of a company will
affects the growth of company. Mix marketing consists of product, price,
location, and promotions. A study done by (ULUS, 2013) proved that the product, price, location, and the
simultaneous promotion hasignificant positive effect on purchasing decisions.
Similarly, t he research done by (INSTITUTION, 2013) also concluded that mix marketing
consists of: product, price, promotion, place, and service has a significant
affect to consumer purchase decision in Bamara Restaurant, Surabaya.
Study about the influence of mix marketing to purchasing
decision is also done by (NGUYEN et al. 2015) it confirms a significant
positive relationship between the variables of mix marketing and consumer actual
purchase of frozen foods which results spesifically indicate that the product
is the most important factor which affecting consumer purchase decisions of frozen
food followed by shopping convenience,
ambience, competitive pricing, promotion and personnel.
There by, It support further research to be used as
reference that mix marketing which consist of product, price, location and
promotion affected consumer purchasing decisions.
3. METHODOLOGY
3.1.
Study
Approach
The scope of this study is regarding to users segment based on lifestyle
analize by using factor analysis. Influence of lifestyle, product innovation and mix
marketing to purchasing decision of Hen's Instant Omelette observed by structural
Equation Modeling.
This study is limited to target consumer who has been attempting Hen's
Instant Omelette product. Consumers who pastisipated in this study is centrally
located throughout Indonesia. The study was conducted by online questionnaires
filled directly by hen's instant omelette consumer.
3.2.
Sample
The population used in this study is consumers who have purchased Hen's
Instant Omelette. The sampling technique is done by using two methods. First, a
non-probability sampling which samples were selected based on certain
considerations and second, by using convenience sampling method which
respondents were selected based on the ease to
be included in this study. The di stribution of questionnaires conducted by online
questionnaires.
3.3.
Study
variables and measuring method
The variables used in the study consists of 4 variables derived from
studies literature. The first variable used in the study was Lifestyles, using
three variables derived from the three main variables that formed the grouping
segments based on lifestyle by using 35 questions Value and Lifestyles II (VALS
II) of Stanford research institute (SRI). The second variable product
innovation drawn from the results of the study (RAHAYU; ANGGARINI, 2009)
consists of the relative advantages (RA), compatibility (CMPY), complexity
(CMPX), divisibility (DV), and communicability (CMNY). The third marketing mix
variables are taken from the study (ULUS, 2013) consists of a product
(PRD), price (PRS), place (PLC), and promotion (PRN). The fourth variable is
the purchasing decision is taken on the results of the study (NUR, 2014)
consisting of a purchase (Y1), recommendation (Y2), searching for information
(Y3).
The scale used to assess each answer is Likert scale. Likert scale used
in this study is a five-rank scale consists of five choices answer. Hovewer, this
study only used 1-4 scale to avoid the grouping of median value. The use of Likert
scale contained only rank without known of how many times a respondent feels better
or worse than other respondents (NAZIR, 1998) due to this condition, this study also use Summated Rating
Scale (SIMAMORA, 2004) to obtain quantitative
result. This scale gives an opportunity to responden ts to express their
feelings by their approval to a question (SAFITRI, 2014). Data collection is done by grouping the answer from the lowest
level (1) to the higher level (4).
3.4.
Data
analysis
Data and information processed and analyzed qualitatively (descriptive) by
using Statistical Product and Service Solutions (SPSS). Descriptive analysis
was conducted to determine the characteristics of consumer from Hen's Instant
Omelette product. To determine the segmentation of user analysis done by using factor analysis approach. The analysis
of consumers' perceptions of product innovation, mix marketing, and lifestyle
analized by Structural Equation Model (SEM).
4. RESULTS AND DISCUSSION
4.1.
Consumer
characteristic
Based on table 1 above, the cross tabulation
between age and sex showed that the most dominant age of consumer is between 20-30
years old which consist of 74 female and 55 male categorized as young people
category.
Tabel
1: Cross tabulation between age and sex
Age |
Sex |
Total |
|
Male |
Female |
||
<20 years old |
9 |
4 |
13 |
20-30 years old |
55 |
74 |
129 |
30-40 years old |
5 |
5 |
10 |
40-50 years old |
3 |
5 |
8 |
Total |
72 |
88 |
160 |
In addition, based on table 2 above the cross tabulation between age and
income showed that consumers who has income more than Rp 5.000.000 isdominated
by consumers who have age between 20 -30 years old and they’re belong to middle
to upper sociecy category.
Tabel
2: Cross tabulation between age and income
Age |
Income (million in rupiahs) |
Total |
|||||
<1 |
1- 2 |
2-3 |
3-4 |
4-5 |
>5 |
||
<20 years old |
4 |
9 |
0 |
0 |
0 |
0 |
13 |
20-30 years old |
19 |
24 |
19 |
18 |
18 |
31 |
129 |
30-40 years old |
1 |
1 |
1 |
2 |
1 |
4 |
10 |
40-50 years old |
0 |
0 |
0 |
0 |
2 |
6 |
8 |
Total |
24 |
34 |
20 |
20 |
21 |
41 |
160 |
Based on Table 3 shows the hobby is the most dominant Others with a total
of 47 people and hobby Traveling as many as 34 people who are at the age of
20-30 years. So we can conclude that consumers Hen Instant Omelette are people
who love the activity or outdoor activities such as trips and other activities.
Tabel
3: Cross tabulation between age and hobies
Usia |
Hobies |
Total |
||||
Traveling |
Sport |
Reading |
Cooking |
Others |
||
<20 years old |
2 |
4 |
1 |
3 |
3 |
13 |
20-30 years old |
34 |
18 |
20 |
10 |
47 |
129 |
30-40 years old |
3 |
2 |
0 |
1 |
4 |
10 |
40-50 years old |
3 |
0 |
2 |
2 |
1 |
8 |
Total |
42 |
24 |
23 |
16 |
55 |
160 |
4.2.
Validity
testing results
Validity testing is needed to see
whether the questionnaire is already proper to use or not. Tests done based on
each dimension which each dimension added with total variable of tested variable.
The value of r-count must be greater than r-table.
Here is a summary of validity testing result table.
Lifestyle questionnaire consisted of 35 questions
taken from the Stanford Research Institute (RSI). These variables are used to observed
the lifestyle of consumers. results showed that there are three variables (X10,
X16, and X24) that are not valid. This happens cause of the r-count of X10 is
counted of 0.106, X16 counted of -0.016, and X24 counted of -0.172 and it less
than the r-table of 0.154. But another 32 variables is valid because r-count
> r-table. Therefore, the third questions are not used for factor analysis
and SEM analysis.
Product innovation questionnaire
consists of five dimensions, which each dimension
consist of variables. Seen the results of validity testing then the whole
question for product innovation questionnaire is valid with average value of
r-count is 0.800 which is greater than r-table, thereby all of variables can be used.
Mix marketing questionnaire
consists of four dimensions, each dimensions consist of variables. Seen the
results of validity testing then the whole question for mix marketing
questionnaire is valid with average value of r-count is 0,782 which r-count >
r-table of values, thereby, all of variables can be used.
Purchase decision questionnaire consists of only
one dimension that has three variables. Y variable labeled as purchase decision
as form of exogenous variables. Seen the results of validity testing then the
whole question of mix marketing questionnaire is valid with average value of
r-count is 0.837 which is greater than r-table. Thereby, all of variables can
be used.
4.3.
Reliability
testing results
Reliability testing result of the whole question consists of 63 questions
shows a reliable result because each has a reliability value greater than the alpha
standard value of 0.7 so that the questionnaire is feasible to be used. Hair et
al. (2006) suggested that coefficient of construct reliability which can be acceptable
is worth at least 0.70 or more.
Tabel
4: Reliability testing result
Construct
Variable |
Counted alpha-value |
Standard alpha-value |
Explanation |
Lifestyle Product innovation Mix marketing |
0.8997 |
0.7 |
Reliabel |
4.4.
Factor
analysis of user segments based on lifestyle
This research will observe a segment of users based on consumer's
lifestyle. The analysis used in this study
is factor analysis that aims to summarize several variables into fewer or
grouped by similarity. Based on the factors analysis test results showed that the value of Kaiser-Meyer-Olkin
Measure of Sampling Adequacy (KMO MSA) is 0.777. KMO MSA value of 0.5 - 0.1
indicates that the process is carried out factor analysis is appropriate and
can be resumed. Lifestyle concept used in this study using eight dimensions of
Value and Lifestyle (VALS), which consist of 8 segments. Factor analysis test result
convergent to three user segments based on questions answered by 160
respondents, namely:
4.5.
Evaluation
of structural models
The estimation results of goodness of fit testing
by using chi-square test was concluded p-value of 0.02179 < 0.05 so that H0 rejected
and H1 accepted, which means the model is not goodness of fit. This happen due
to the large, enough sample size and the number of lines that are formed on the
model. Based on Nugraha (2016) chi-square value and probability also showed
unfavorable because the chi -square value is very sensitive to sample size and
indicators. Therefore, testing with only by chi-square are rarely performed
(CARVALHO; CHIMA, 2014).
Besides, SEM provides an alternative use of
indicators of another goodness of fit. If there is one or more parameters that
have been fit then declared the models is fit (NUGRAHA, 2016). RMSEA criteria
produce of 0.028 ≤ 0.08 value, which means the models already goodness
of fit. Another criterion of goodness of fit is GFI, NFI and CFI produce value of
> 0.9, which means the models also had goodness of fit. Since the result of
several indicators lead to the conclusion of goodness of fit then the
hypothesis testing theory can be done.
Tabel
5: SEM model testing
Goodness-of-Fit |
Cutt-off-Value |
Result |
Conclusion |
X² - Chi-square |
Expected to be small |
448.39 |
defective |
Significance |
≥ 0.05 |
P = 0.02179 |
|
RMSEA |
≤ 0.08 |
0.031 |
goodness of fit |
GFI |
Near 1 |
0.96 |
goodness of fit |
NFI |
Near 1 |
1.00 |
goodness of fit |
CFI |
Near 1 |
1.00 |
goodness of fit |
4.6.
Hypothesis
testing results and Impact
In sign ificance test (t-test) will seen t -count value that
describes the influence between variables and indicators. Number with thicker
color indicates t-test value which higher than another variables or indicators.
This means that these variables have a greater influence to latent variables formation
tested in the model.
Variable that has the greater impact is the Product Innovation variables that
can be viewed in Figure 1.
Based on Figure 1 showed the hypothesis
testing result from model of this study. There are three hypotheses were tested
in this study such as lifestyle, product innovation and mix marketing to purchasing
decision. This stru ctural model is used to observe the cau se and effect
between variables so that, the value of each endogenous and exogenous variables
as a measure of the relationship between variables can be seen. The principle
of decision making can be seen as follows:
• H0:
If t-count ≤ t-table (1.96) then there is no significant effect
• H1:
If t-count ≥ t-table (1.96) then there is a significant effect
10.74 13.22 2.05 15.44 14.35 4.61 7.63 2.42 16.30 9.56 4.00 14.55 14.46 15.30 12.88 5.42 10.19 8.95 9.99 8.60 6.63 4.08 5.23 5.26 5.20 5.23 -0.47 3.06 33.02 32.63 3.21 -22.07 30.88 30.26 -26.68 -28.62 -14.01 -22.21 0.64 0.93 4.11 Purchasing Decision PLC Marketing Mix PRN PRS PRD CMNY DV CMPX CMPY RA Y1 Y2 Y3 X4X4XX4 X6 X5X5 X7 X8 X9 X10 X111111111 X12 X13 X14 X17 X166 X18 X20 X19 X21 X22 X23 X24 X25 X26 X27 X28 X15 Lifestyle X1 X2 X3 Product Innovation
Figure 1: Significance test result (t-test)
Tabel
6: The estimation results of SEM regression models
Path |
Estimate |
S.E. |
|t-count| > 1.96 |
Conclusion |
|
Direct |
Indirect |
||||
Lifestyle – Decision |
0.270 |
- |
0.420 |
0.64 |
Not significant |
Innovation - Decision |
1.040 |
- |
0.250 |
4.11 |
Significant |
Marketing Mix - Decision |
0.260 |
- |
0.280 |
0.93 |
Not significant |
·
The relationship
between lifestyle and purchasing decisions (H1)
The results showed that the coefficient estimation of 0.270, which
means the higher the lifestyle will have an inversely proposition of direct
purchasing decisions and vice versa. These results indicate that the theory of hypothesis proposed by t-test value of 0.64
< t -table of 1.96, which means H0 accepted and it can be concluded that
there is no positive influence of lifestyle to purchasing decisions.
Similar result also found by Qing et al. (2012) which explain, the lifestyle of three segments which
consist of Risktaker, experience, and Traditional does not have significant
influence to purchasing decisions of domestic fruit in China. I t can be
happens as a result of purchase attitude of domestic fruit is still low in
china. So that, it might have a similar impact to Hen's Instant Omelette product as the effect
of low purchase attitude of consumers.
The results showed the coefficient estimation of 1.040, which means the
higher the innovation will also increase the purchase decisions and vice versa.
These results indicate that the theory of hypothesis proposed by t -count value of
4.11 > t-table of 1.96, which means that H0 rejected and can be concluded
that there is a significant positive effect of innovation to purchase
decisions. In accordance with (FRANK;
MICHAEL, 2013) found that innovation has a positive influence and
significant impact on consumer intentions to purchase a new product. So that
the reputation of the company that continuously improve their product
innovation to generate excitement and increase engagement with consumers will
lead to new product sales performance and superior competitive advantage (HENARD;
DACIN, 2010).
The results showed the coefficient estimation of
0.260, which means the higher the mix marketing mix will also increase the
direct purchasing decisions and vice versa. These results indicate that the theory
of hypothesis is proposed by t-test value of 0.28 < t -table 1.96 which
means H0 is accepted it can be concluded that there is no positive effect of
mix marketing to purchasing decision.
These results might be caused by the knowledge of
consumers for such products still low and manufacturers are also not optimal for
marketing the product. Supported by (FRANK; MICHAEL, 2013) that the knowledge
of consumers towards new products has a positive influence to their purchase
decision.
5. CONCLUSION
Based
on the study that has been done, obtained some conclusions as follows :
1. Characteristics of respondents describe the diversi ty of respondent
profile data, which in this case represents Hen's Instant Omelette market.
dominant age ofconsumer is between 20-30 years old were dominated by female, besides followed
by age between 20-30 years which has i ncome of more than Rp. 5,000,000 per
month. The relationship between age and hobby showed that the most dominant hobby in age between 20-30 years old is non
traveling. However, followed in second place
was dominated by traveling, reading, sports and cooking hobbies.
2. The consumer segment of Hen's Instant Omelette based on lifestyles are
divided into three groups. First, the modern group motivated and respected by
the new ideas even though it need a lot of cost. Second, the clasic group is a
form of group which like to do something by their own in stead of buying. The
third, trendy group is a group that
follows the current trends. They predicted as young generation of consumers, it
can be seen that they have a high self confidence to consider themselves
intellectually and have better skills than most people.
3. Based on SEM hypothesis result, hypotheses 1 stated that lifestyles has
nodirect positive influence on purchase decisions, hypothesis 2 stated there is
a direct positive influence on purchase decisions, and the hypothesis 3 stated the
mix marketing has no direct positive influence on purchase decisions. So, as to
be considered to increase product purchasing decisions is need to develop innovative
products. The innovation products are made based on five dimensions, first
priority is innovation of product compatibility such the conformity between
quality and benefits, compliance with the price and the suitability of design
to consumer demand. Next, it also need to seen from relative su periority and
divisibility of products. Most dominant purchasing decisions is by recommending
the product to others, so that the products will be well-known and can be
accepted by consumers.
6. IMPLICATION
Based on the analysis, it can be formulate several considered managerial
implications as follows :
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