CHAPTER I 1.

1 Research Background
Shopping is the examining of goods or services from retailers with the intent to purchase at that time. Shopping is an activity of selection and/or purchase. In some contexts it is considered a leisure activity as well as an economic one.
To many, shopping is considered a recreational and diversional act ivity in which one visits a variety of stores with a premeditated intent to purchase a product. "Window shopping" is an act ivity that shoppers engage in by browsing shops wit h no intent to purchase, possibly just to pass the time between other activit ies, or to plan a later purchase. To some, shopping is a task of inconvenience and vexat ion. Shoppers sometimes go though great lengths to wait in long lines to buy popular products as typically observed wit h early adopter shoppers and holiday shoppers. In this research I take fashion in shopping. because fashion is relates to shopping style. Fashion is the more touching aspects of daily life for everyone. Fashion affects what we wear, we eat, how we live, and how we see ourselves. Fashion also pushed world markets to continue to grow, manufacturers for producing, the marketers to sell and consumers to buy.

Dress code that follows the fashion show also our personality and idealism. Fashion today is a business big enough and profitable. That the symptoms of a busyhect ic wit h a variety of products leads to a fashion show, when consumers increasingly want to be recognized as a personal ident ity. Therefore, they deliberately shape its own ident ity and then unite wit h a group that is in harmony with it. This is the pride of someone if they could enter into what is becoming a common trend, because it means that he belonged to fashionable modern alias because it's always fashionable. (Capturing the Dynamics of Fashion Business Success, www.swa.co.id, 2004) Fashion is a popular, one's personality, and a t ime frame. So understandable why a popular style that can be said of this month behind the times a few months later. Fashion system includes all the people and organizat ions involved in creat ing and changing the meaning of symbolic meaning in the form of goods. Although people often equate fashion with clothing, whether everyday clo thes or prom dresses are exclusive (haute couture), it is important to remember that the fashion process affects all types of cultural phenomena, such as music, art, architecture and even science. Fashion can be considered as a code, or language that helps us understand these meanings. However, fashion seems to tend to be more context-dependent than language. The point is, the same thing can be interpreted in different ways by different consumers and in different situations. So there is no definit e meaning but leaves freedom for the translator in the mean. According to Solomon in his book 'Consumer Behavior: European Perspective', 2

fashion is a process of social distribution (social-diffusion) in which a new style adopted by consumer groups. Fashion or style refers to the combinat ion of several attributes. And so it can be said 'in fashion', that combinat ion should be evaluated posit ively by a reference group. The terms of style and design should be clarified so as not equated with fashion. Style (style) is a characterist ic of presenting things. Within the scope of clothes, force is the characterist ic appearance of clothing materials, combination of featuresThe pattern of buying behavior features that make it different from other clothing. For example, the skirt as one of the styles of dress for women, the other option is pants. Jas is one stylish man dressed man, the other option is a sport jacket. Style someday be acceptable and one can go, but a specific style will still be remembered, whether it be said of fashion or not. While the design is a specific version of the style. Examples skirt into a stylish women's clothing, but have different designs such as A-line, high-waist (high waist), mini skirts, and others. Clothing manufacturers usually make several design variat ions of the style in vogue at that time that consumers have many choices. Both the style and design joint ly play a role in determining the fashion at that time. The designers create a variety of styles each season based on what they think they will be preferred by consumers. From a variety of styles, manufacturers choose which one would be successful in the marketplace, and usually they reject more than they choose. The seller (retailer) choose which customers they want from what is offered by the manufacturer. Then ult imately the consumer who holds a key role, they choose one 3

style and another style that rejected, and only those who ult imately determine which style will become the fashion. Fashion can be categorized based on which group they look. High fashion refers to the design and style adopted by the group leaders is the exclusive fashion, is the elite consumers and adapt their very first fashion changes. Including high-fashion style that is usually introduced, produced, and sold in limited amounts and are relat ively expensive to The pattern of buying behavior. Socialites, artists, celebrit ies and fashion innovators. While the mass or volume fashion fashion and design refers to the style received wider public. Fashion types are usually manufactured and sold in large quantit ies at cheap prices to moderate. Because this study aimed to understand consumer behavior in general, the focus of discussion falls on the fashion in which the mass can be enjo yed by society at large.

1.2

Research Problem Based on the above understanding, the authors restrict this study to the problem of

shopping style. The problem statement is: Problem Statement: 1. Is there any relationship between the type of Customer Innovativeness and the Student Shopping Style especially for student of Faculty Economics SamRatulangi University Manado 2. Between the two type of Customer Innovativeness which is the most significant influence to the Student Shopping Style.

1.3

Research limitation That research is not too broad and could provide understanding, which clearly it is

necessary given the scope of the problem definit ion. The study was limited to students who are in University of SamRatulangi Manado especially in Faculty of EonomiInternat ional Business Administration(IBA) with a variable-variable how to force students to shop

1.4

Research objectives Considering the students often and certainly in terms of style do not miss the

shopping is always much less people who like to shopping Manado. By and therefore in this study took Problem Statement: 1. To analyze relat ionship between the type of Customer Innovat iveness to Student Shopping Style especially for student of Faculty of Economics SamRatulangi University Manado 2. To analyze two types of Consumer Innovat iveness which is the most significant influence to Student Shopping Style

1.5

Research Usefulness

This research can be useful: 1. For the students, the results of the study conclusions and suggest ions submitted, can assist in decision making when going shopping 2. May be addit ional literature for researchers who will be dat ing and can provide benefits and add insight to those who read it.

1.6

Literature Review

In Table 1 Describes several related articles to the next study 6

The first journal is Consumer innovat iveness and shopping stylesby Ji Eun Park about This paper seeks to invest igate whether consumers' innate innovat iveness is associated with their shopping styles. Specifically, it aims to explore the relat ionship between two types of innovat iveness sensory and cognitive and consumer shopping styles. The he paper integrates the consumer innovat iveness and consumer shopping styles literature. It is built on the premise that if consumer innovat iveness is regarded as a general personality trait, then it would also be reflected in consumers' shopping approaches. A structural equat ion model is used to test the relat ionship between cognit ive and sensory innovat iveness and various shopping styles.

The Second journal is Contrary to previous research in the area, this article argues that consumer innovat iveness, or the desire for new experiences, is not an undifferent iated construct but can be dist inguished as cognitive and sensory innovat iveness. Cognit ive (sensory) innovat iveness is the preference for engaging in new experiences with the objective of stimulat ing the mind (senses). The article presents psychometrically valid measures of these constructs and discusses two studies that examine the differences between cognit ive and sensory innovativeness. One study, based on 326 undergraduate students, shows that the innovativeness constructs differ in their relat ionship with other personality traits, such as preference for verbal/visual style of processing. The other study, based on the personal computer, food processor, and video cassette recorder purchase behavior of 245 respondents, shows that cognitive and sensory innovators differ in their responses to innovat ions and demographic profiles. The research 7

and managerial implicat ions of these findings are discussed.

The third journal is Consumer Innovat iveness: A market ing approach By innovat iveness we mean the predisposit ion of a consumer to adopt a product earlier than most others. Various studies have shown that across product categories, innovators tend to be: opinion leaders, risk takers, more likely to obtain information from mass media than through word of mouth, open to new ideas and change, relat ively young etc. Marketers want to ident ify the segment of the market that is most likely to adopt a new product when it is the first introduced. This article describes we ask some key quest ions about the nature of innovat iveness and try to make a correlat ion between characterist ics of the innovators and innovat iveness.

The next study is to analyze the dominant factor of Sensory and Cognit ive innovat iveness to Consumer Innovat iveness to the Student Shopping Style. In many journal that I have been use for support my research I found similar case that will support my research. In my research used of mult iple Regression Analysis method.

TABLE 1.6 LITERATURE REVIEW

Tit le

Year

Author

Variable Use

Tools of

Result

Comment

Consumer innovat iveness and shopping styles

2010

Ji Eun Park

Sensory and Cognit ive Innovat ivenes s

Analysis Use Structural equation model

Different iat ing between cognit ive and sensory innovat iveness

2002

Meera P. Venkatrama n

Concepts, measurement, and implicat ions

Simple

Regression

It provides new insight into the shopping patterns of consumer who belong to different innovat iveness types. Contrary to previous research in the area, this art icle argues that consumer innovat iveness
Finding correlations between cultural dimensions and innovation recaptiveness involves also setting of organizational marketing strategies andtechniques

The paper is the first step in exploring the relat ionship between consumer innovat iveness and consumer shopping style This article undifferent iate d construct but can be dist inguished as cognit ive and sensory innovat iveness
This article describes we ask some key questions about the nature of innovativeness and try to make a correlation between characteristics of the innovators and innovativeness.

Consumer Innovat iveness: A market ing approach

2009

Costinel Dobre

Correlat ion between innovators and innovat ivenes s.

Descript ive Correlat ions

CHAPTER II
10

THEORETICAL REVIEW

This chapter contains the theoretical review of Marketing, Consumer Behavior and Consumer Preferences from textbooks, journals and articles.

2.1

Marketing Today, marketing must be understood not in the old sense of making a sale but in

the new sense of sat isfying customers needs. Marketing, more than any other business funct ion, deals wit h customers. Building customer value and sat isfact ion is at the very heart of modern marketing. Kotler (2003) defines Marketing is a social process by which individuals and groups obtain what they need and want through creating, offering, and freely exchanging products and services of value with others. According to Kotler and Keller (2006:5), Marketing deals wit h ident ifying and meet ing human and social needs. One of the shortest definit ion of marketing is meet ing needs profitably. Kotler (2003:5) defined market ing as the task of creating, promoting, and delivering goods and services to consumers and businesses. Marketers are skilled in stimulat ing demand for a companys products, but this is too limited a view of the tasks marketers performs. Just as production and logistics professionals are responsible for supply management, marketers are responsible for demand management. Market ing people are involved in 10 market ing types of ent it ies: goods, services, experience, events, persons, places, properties, organizations, information, and ides. 11

Burns and Bush (2006:4) defined marketing as an organizat ion funct ion, not a group of persons or separate entity wit hin the firm. It is also a set of processes and not a single tact ic such as creat ing and end-aisle display. The processes create, communication, deliver value to customers. Marketing is not trying to sell customer something; rather, it is providing customers wit h something they value. The object ive of market ing is to create and manage customer relat ionships for the benefit of the organization and its stakeholders. Marketing, more than any other business funct ion, deals wit h customers. Understanding, creat ing, communicat ing, and delivering customer value and sat isfact ion are at very heart of modern market ing thinking and pract ice. Today Market ing must be understood not in the old sense of making scale telling and selling but in new sense of consumer innovat iveness needs. Selling occurs only after a product is produced. By contrast, market ing starts long before a company has a product. Marketing is undertaken to access needs, measure the extent and intensity, and determine whether a profitable opportunity exist.

2.1.1 Marketing Strategy According to Kotler(2005:47) Marketing Strategy is The Marketing logic by which the business unit hopes to achieve its marketing objectives.

12

Marketing strategy is a process that can allow an organizat ion to concentrate its limited resources on the greatest opportunit ies to increase sales and achieve a sustainable compet it ive advantage. A marketing strategy should be centered around the key concept that customer sat isfact ion is the main goal. Marketing strategy is a method of focusing an organizat ion's energies and resources on a course of act ion which can lead to increased sales and dominance of a targeted market niche. A marketing strategy combines product development, promotion, distribut ion, pricing, relat ionship management and other elements; ident ifies the firm's market ing goals, and explains how they will be achieved, ideally wit hin a stated timeframe. Market ing strategy determines the choice of target market segments, posit ioning, market ing mix, and allocat ion of resources. It is most effect ive when it is an integral component of overall firm strategy, defining how the organizat ion will successfully engage customers, prospects, and competitors in the market arena. 2.2.1 Innovative Marketing According Kotler and Gary Amstrong (2005:526) Innovat ive Marketing is A principle of enlightened market ing that requires that a company seek real product and market ing improvement. Innovat ion is a change in the thought process for doing something, or the useful applicat ion of new invent ions or discoveries. It may refer to an incremental emergent or radical and revolut ionary changes in thinking, products, processes, or organizat ions.

13

Following Schumpeter (1934), contributors to the scholarly literature on innovat ion typically dist inguish between invent ion, an idea made manifest, and innovat ion, ideas applied successfully in pract ice. In many fields, such as the arts, economics and government policy, something new must be substant ially different to be innovative. In economics the change must increase value, customer value, or producer value. The goal of innovat ion is posit ive change, to make someone or something better. Innovat ion leading to increased productivity is the fundamental source of increasing wealth in an economy. In the organizat ional context, innovation may be linked to performance and growth through improvements in efficiency, productivity, quality, compet it ive posit ioning, market share. All organizat ions can innovate, including for example hospitals, universit ies, and local governments. While innovation typically adds value, innovation ma y also have a negat ive or destructive effect as new developments clear away or change old organizat ional forms and pract ices. Organizations that do not innovate effect ively may be destroyed by those that do.

2.2

Consumer Behaviour Consumer Behavior consist of two words, namely: consumer and behavior.

Definit ion of Consumer according to Walters(1974:4), is an individual who purchase, 14

who jas the capacity to purchase, goods and services offered for sale by market ing inst itutions in order to satisfy personal or household needs, wants, or desires.

Kanuk and schiffman(2007:4) defined Consumer behavior as the behavior that consumer display in searching for, purchasing, using, using, evaluat ing and disposing of products and services that they expect will satisfy their needs. Consumer behavior focuses on how individuals makes decisions to spend their available resources (time, money,effort) on consumption related items. That includes what they buy it, why they buy it, when they buy it, where they buy it, how they buy it.

More specifically, the study of consumer behavior invest igates the way of individuals choose, purchase, use and dispose of goods and services in order to satisfy personal or household needs. Some of the influences that shape the consumer choices and tendencies are internal process, such as our own thinking, feeling, and desiring. Other influences spring from environmental factors, such as social forces (whether group or interpersonal) and economic situat ional, retail, and promotional considerat ions. Somehow, all the forces combine and dynamically interact to produce shopping behaviorthe object ive of which is to satisfy human needs and wants (Hanna and Wozniak, 2001:13).

Nevertheless, the term of consumer behavior differs from a similar term, buyer behavior, in that buyer behavior is an umbrella term understood to encompass businessto-business purchasing as well as personal consumpt ion. Business-to-business buying entails the procurement process and act ivit ies of producers and intermediaries in the 15

market ing channels, as well as the acquisit ion producers of other organizat ions and inst itutions. Business-to-business buying is beyond the scope of this text, which primarily focuses on consumer behavior.

The ult imate goal of consumer behavior is to help marketers better understand the process of act ivit ies and act ivit ies of consumer behavior, and thus to anticipate how market ing strategies and tactics will influence consumers and affect the products and services various types of consumers will buy. In other words, as marketers come to understand customer behavior, they are better able to predict how consumers will respond to various environmental and informat ional cues.

Marketers can then configure and fine-tune their strategies and tactics accordingly. Addit ionally, in todays highly compet it ive market place, a sound understanding of consumer behavior helps marketers gain a compet itive advantage and establish posit ive and last ing customer relat ionships.

In Consumer Behavior

the producer should to know about the element of

consumer itself. Such as Social and Cultural changes have a major impact upon virtually all products, services, and customers.

2.2.1 Social In the situat ions of the Student of Faculty of Economics is a very kind for the background of the social. Starts from low, middle, upper class. The social of the student itself, has an influence to shopping style. For some people has in low-middle of courses 16

the shopping style its a simple style they wearing. But for some people middle unt il upper class so they should impressions style when they wearing something.

2.2.2 Cultural The culture of Manado people also has influence to shopping style. Most of people in Manado they has a priority of fashion. In Manado people thought they must has a good impression when they experimentally wit h their own style

2.3

Consumer Preferences Preferences are essent ial to treat conflict ing informat ion in non-monotonic

reasoning, reasoning about actions and time, planning, diagnosis, configuration, and other areas in knowledge representation 6127and reasoning. In constraint programming, preferences are used to treat soft constraints, and to reduce search effort. Preferences are complementary to constraints, and represent counterpart to object ive or utility functions. The concept of preferences comes from economic theory according to Philips (2002)With Preferences defined as individuals utility for consuming goods and services. Briefly welfare economics is based on the assumpt ion that individuals maximize a preference (or utility) funct ion.

According to Winter (1997:44)It is subjective in the sense that it expresses somebodys preference of something over something else. It is relat ive because

17

something is preferred over something else, and because subjects pure preferences ma y change over time.

Consumer behavior is best understood in three distinct steps: (1) finding way to describe the reasons why people prefer on good to another, i.e. consumer preferences; (2) taking into account the fact that consumers also have limited income which restrict the quant it ies they can buy, i.e. budget constraint; (3) the consumer choice, i.e. given the preferences and limited income, a consumer chooses to buy combinat ions of goods that maximize their sat isfact ion (Pyndick and Rubinfeld, 2001:62). Somehow, Consumer preferences tell how the customers would rank (that is, compare the desirability of) any two combinat ions or allotments of goods, assuming these allot ments were available to the consumer at no cost (Preferences and Ut ility; 2002:77).

Goods are produced and services are planned in anticipation of future demand. Meanwhile, consumer preferences and tastes constantly change. It becomes increasingly important that marketers know what consumers need and want, how they spend their resources, and how they decide where to shop, when to buy, and what to purchase. Timely knowledge of consumer behavior is a prerequisite for marketing success (Hanna and Wozniak, 2001:13).

In addit ion to certain beliefs about our life-situation, each individual holds preferences about what kind of response to the situation is the most fitting response. A preference is a desire for a certain goal or outcome. Preferences are central to morality because preferences reflect what we think of as a good life. 18

Describing consumer preferences in such a coherent way given the vast number of services that our economy manages and provides for purchase as well as the diversity of personal taste must come to comparing different groups of items available for service

2.4

Product Development According to Kotler (2005:40) Product development is A strategy for company

growth by offering modified or new product to current market segments Creation product with new or different characteristic that offer new or addit ional benefit to the customer. It may involve modificat ion of an exist ing product or its presentation, or formulat ion of an entirely new product that satisfies a newly defined customer want.

According to Gary Amstrong (2005:260) Product Development is Developing the product concept into a physical product in order to ensure that the product idea can be turned into workable product.

2.5

Research Hypothesis According to Sekaran (2003:103), a hypothesis can be defined as a logically

conjectured relationship between two or more variables expressed in the form of a testable statement. Hypothesis in this research are: 19

1. Type of Consumer Innovativeness does influence to the student Shopping Style Simultaneously 2. Two types of Consumer Innovativeness is the most significant influence to the Student Shopping Style Partially

2.6

Conceptual Framework

Figure 2.6 Conceptual Framework

Cognitive Innovativeness

Shopping Style

Sensory Innovativeness

The theoretical framework is the foundation on which the ent ire research project is based. It is logically developed, described, and elaborated network of associat ions among the variables relevant to the problem situat ion. The theoretical framework offers the conceptual foundat ion to proceed with the research. 20

This research starts from the theory of consumer innovat iveness which is defined to have the innovat ions about the shopping styling. In this research, Cognit ive and Sensory Innovat iveness are the independent variable Furthermore, this research is designed to analyze the influence of Consumer Innovat iveness which is consists of Cognit ive and sensory Innovat iveness to Consumer Innovat iveness on Shopping Style. Consumer Innovat iveness is the dependent variable

CHAPTER III RESEARCH METHOD

21

Chapter three discusses the research method. The data is analyzed wit h methodology that matches to the problem. The method that will be used in this research is Mult iple Linear Regression Method.

3.1

Data Collection Method The data collected in this research divided by two kinds of data comprises

primary data and secondary data. According to Burns and Bush (2006:146), primary data informat ion is collected by a researcher to support the research while secondary data is the exist ing data which is collected by the previous researchers and used to support the statements that are used in the research analysis. Data collected in this research was taken from to Student of Faculty of Economics SamRatulangi University, Manado through two main data collection methods. They are:

3.1.1 Primary Data Self-administered Survey The data were collected through questionnaires: the respondent reads the questions and responds direct ly on the quest ionnaire. Face-to-face Interview Face-to-face interviews were conducted wit h to Student of Faculty of Economics SamRatulangi University, Manado to get the needed data.

22

3.1.2 Secondary Data Secondary data was taken from the Student itself, internet browsing, and textbooks that support primary data. Collect ing data from literature books and articles, also relevant informat ion which are used to guide theory in this research and to create more understanding about the theory also.

3.2

Population and Sampling Method

3.2.1 Population The populat ion in this research was some student at Faculty of Economics especially Internat ional Business Administration (IBA) Manado. They were considered important for student improvement and development in the future. Therefore, it is necessary to pay a great attention to them. The populat ion is the student of Faculty of Economics University Manado. As the type of research is self-administered survey, data was collected through personally administered quest ionnaires. This data collect ion method was supposed as an efficient data collect ion mechanism that fitt ing with problems and object ives of this research. Other considerat ions are all the completed responses can be collected within a short period of time and any doubts that the respondents might have on any question could be clarified on the spot. The researcher is also afforded the opportunity to introduce the research topic and motivate respondents to offer their frank answers.

23

3.2.2 Sample According to Sekaran (2003;266), a sample is a part of the populat ion. Sekaran (2005:295) based on Roscoe (1975) proposes that the sample sizes larger than 30 and less than 500 are appropriate for most research. The sample selected in this research was 50 studentof Faculty of Economics University Manado. Sampling technique that will be used in distribut ing quest ionnaire is random sampling.

3.3

DEFINITION AND VARIABLES MEASUREMENT

3.3.1 Variables Definition A. Innovativeness as independent variable (X) X1 : Cognitive innovativeness Cognitive innovators are inclined to show shopping styles such as quality consciousness, price consciousness, and confusion by over choice. X2 : Sensory innovativeness Sensory innovators are inclined to have shopping styles such as brand consciousness, fashion consciousness, recreational orientation, impulsive shopping, and brand loyalty/habitual shopping. A. Shopping style as dependent variable (Y)

3.3.2 Variables Measurement 24

The measurement of the data collected in this research uses the Likert Scale. Malhotra (2003: 284) defined the Likert Scale as a measurement scale with five response categories ranging from strongly disagree to strongly agree which requires the respondents to indicate a degree of agreement or disagree with series of statement related to stimulus object.

3.4

Data Analysis Method Data analysis method in this research applied the Pearson Correlat ion analysis to

measure the significance level of the relat ionship between ethical leadership and emplo yees productivity. To study the influence of ethical leadership on emplo yees productivity, analysis of mult iple linear regressions was used. In this analysis, emplo yees productivity was fixed as dependent variable or criterion whereas ethical leadership was the independent variable or predictor. Multiple regression analysis uses criterion variables whose values are known to predict a single predictor variable decided by the researcher.

3.4.1 Testing of Reliability and Validity Cronbachs alpha is used to measure the reliability of the variables. The minimum value of Cronbach Alpha is 0.60 (Sekaran, 2003). To test the validity of variables use Pearson Moment Correlat ion Coefficient. The validity coefficient for each variable is good, where the values are above minimum level of 0.30 (Sekaran, 2003). 25

3.4.2 Multiple Linear Regression Analysis There are more than one factor of independent variables, so this research will use mult iple regression reflect ing the relationship between a dependent variable in t his case shopping style and two or more independent variables dimensions of Consumer Innovat iveness Carlson and Betty Throne (2003:416), mult iple regression analysis provides two important results. First, is predict ion of a dependent or outcome variable. The second object ive is est imat ing the marginal effect of each independent variable. This research will analyze the data by using software SPSS. The equat ion model of mult iple regression analysis which used in this research can formulate as shown below: Y= + 1X1 + 2X2+ e Where: Y X1 X2 1, 2, e = Shopping Style (dependent variable) = Constant/ intercept = Cognit ive Innovat iveness = Sensory Innovat iveness = the slope for each independent variable. = error standard or error term

Source: Statistic for Business and Economics 5th edition by Paul Newbold

26

3.4.2.1 Testing the Goodness of Fit : Coefficient of Correlation (R) and Coefficient of Determination (R) Mult iple correlat ion coefficients (R ) and the Determinat ion Coefficient (R2) the dual correlat ion coefficient was the figure that showed the strength of relat ions between two or more the free variable. Coefficient of Mult iple Correlat ion (R) is used to measure the strength of relat ionship between (dependent variables) and X (independent variables) (Newbold, et.al, 2003; 431) with the consideration that: >0.70 means a very strong posit ive associat ion 0.50 0.69 means a substant ial posit ive associat ion 0.30 0.49 means a moderate posit ive associat ion 0.10 -0.29 means a low posit ive associat ion Zero if there is no associat ion (-0.01) (-0.09) means a negligible negat ive associat ion (-0.10) (-0.29) means a low negat ive associat ion (-0.30) (-0.49) means a moderate negative association < -0.70 means a very strong negative associat ion According to Arsyad (1994: 186), the mult iple determination coefficients are the value that shows the proportion of the dependent variable that is explained by the independent variable variation. It means R shows how big the contribut ion of the independent variable (X) is to up and down dependent variables (Y). In addit ion 27

Newbold, et.al (2003:430) says that. The Coefficient of determinat ion (R2) routinely is used as a descript ive statist ic to describe the strength of the linear relationship between the independent variables and the dependent variables. The formula that is used in mult iple determinat ion calculat ion is:

n7XY  7X7Y R2 = 2 2 2 2 nX  (7X ) n7Y  (7Y )

A?

To measure the proportion (percentage) of contribution of the dependent variable to the independent variable: R = Between 0 and 1 or R 1 R = 1 percentage contribut ion (X1, X2, X3, and X4) to up and down variat ion if Y as big as 100%, it has not another factor which influences Y. R = 0 regression not used to forecast toward Y.

3.4.3 Testing of Classical Assumptions According to Sulaiman (2004:87), a mult iple linear regression model should meet some basic assumpt ion below:

3.4.3.1 Heteroscedasticity Models in which the error terms do not all have the same variance are said to exhibit heteroscedast icity (Newbold, et.al, 2003:508).

28

When this phenomenon is present, least square is not the most efficient procedure for est imat ing the coefficients of the regression model. Moreover, the usual procedure for deriving confidence intervals and tests of hypotheses for these coefficients are no longer valid. There are some tests of detecting Heteroscedasticity: 1. Scatter plot of residuals against an independent variable. A model can be concluded not apparent of heteroscedasticity if t he scatter plot does not form any pattern (Sulaiman, 2004:88). 2. Spearman Correlat ion, highly recommended for a small samples model usually less than 30 samples. Model is said to be infected by heteroscedasticity if the spearman coeffifient of correlat ion has significant value (Sig. <0.05) toward the residuals.

3.4.3.2 Normality In mult iple regression models, the residual is assumed to be normally distributed. A residual is the difference between the observed and model-predicted values of the independent variable. The residual for a given product is the observed value of the error term for that product. A histogram or P-P plot f the residuals can help researchers to check the assumption of normality of the error term, the requirements are as follows: 1. The shape of the histogram should approximately follo w the shape of the normal curve 2. The P-P plotted residuals should follow the 45-degree line. 29

If no normality is found in the residuals or the actual variables transformation may be considered, unvaried normality does not ensure mult ivariate normality, but does increase the likelihood. Transformat ions are recommended as a remedy for outliers, breaches in normality, non-linearity, and lack of homoscedast icity.

3.4.3.2 Multicollinearity Mult icollinearity shows the intercorrelat ioon of independent variables. R2 is near1y violate the assumpt ion of no perfect co linearity, while high R2 is increase the standard error of the beta coefficients and make assessment of the unique role of each independent difficult or impossible. To assess mult icollinearity, researchers can use tolerance of VIF, which build in the regressing of each independent on all the others. Even when mult icollinearity is present, note that estimates of the importance of other variables in the equat ion (variables which are not collinear with others) are not affected. According to Ariyanto (2005:38), a model is free from mult icollinearity if the model meets several requirements: 1. Tolerance should be more than 0.2 the closer the tolerance is to 1.0, the less the collinearity. 2. VIF should be less than 10. The closer the VIF is to 1.0 less the collinearity.

3.4.4 Hypothesis Testing In order to test hypothesis, statist ical analysis such as the Ftest and Ttest need to be conducted. The Ftest and Ttest are useful in a situat ion when the research needs to find out 30

the influence and correlat ion between dependent and independent variables. When Fvalue and tvalue is gained and compared to Ftable and ttable, the hypothesis could be examined.

3.4.4.1 F Test A F-test as any statistical test in which the test statist ic has an F-distribut ion if the null hypothesis is true. In the simplest case, it is used to examine the effect of some factors on some outcome. To test the influence between the dependent variable and independent variables, the Ftest uses a level of significance () = 0.05 or equal to 95% level of acceptance. Ho : = 0 Ha : 0 Ho is rejected if Fcount Ftable, If Ho is rejected than Ha will be accepted. Then calculate F as:

RSS1 RSS2
p2 p1

F= RSS2
n p2 Where, RSSi (p2 p1 , n p2) = residual sum of square of model i = degree of freedom

3.4.4.2 T Test 31

A T-test is any statist ical hypothesis test in which the test statist ic has a students distribut ion if the null hypothesis is true. It is applied when the population is assumed to be normally distributed but the sample sizes are small enough. To test the correlat ion between dependent and independent variables, Ttest uses level of significance = 0.05 or equal to 95% level of acceptance. Ho : j = 0 Ha : j 0 Ho = Will be rejected if tcount ttable. If Ho is rejected than Ha is accepted. The value of t is done by formula: t = bj-j/sbj Where, bj = jth variable coefficient j = jth parameter sbj = jth standard deviat ion.

CHAPTER IV RESULT AND DISCUSSION

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This sect ion provides the findings from the analysis and the discussion to describe in depth of the findings. Tables and figures are used to provide descript ion of the findings. 4.1 Result

4.1.1 Characteristics of respondents In this research, the data was collected from questionnaires and distributed to 50 respondents. The characteristics of respondents are classified based on age, gender, and income. The following is the descript ion of respondents classification.

4.1.1.1 Respondent Characteristic Based on Gender The characteristics of respondents is based on gender: male and female (see figure 5.1) Figure 4.1.1 Respondent Based on Gender

Gender
male female

30%

70%

Source: Data Processed, 2010 Figure above shows that 70 or 35 Students of the respondents are female and 30 or 15 33

Students are male. From the quantity and percentage, it can be seen that the amount of female respondent is the dominant gender that I was taken the data.However, this percentages is not representative of all the population of Student Faculty of Economics because the sample itself only 50 students.

4.1.1.2 Respondent Characteristic Based on Age In this research, the respondents were distributed fairly in two categories: 20-22 years old, and 23-24 years old (see figure 5.2) Figure 4.1.2 Respondent Classification Based on Age

Age
20-22 years old 23-24 years old

16%

84%

Source: Data Processed, 2010 From the figure, it can be seen that most respondents is 20-23 years old wit h 84% or 42 34

persons, followed by those who are 23 24 years old with 8 persons (16%).

4.1.1.3 Respondent Characteristic Based on Income The characteristics of respondents as classified based on income are shown in figure 5.3. Figure 4.1.3 Respondent classifications based on Income

Income
< 1 million 1 - 2.5 millions > 2.5 millions

20%

24%

56%

Source: Data Processed, 2010 The figure describes that 56% or 28 Students of respondents have an income < 1 million , 24% or 12 Students have an income of 1-2,5 millions, and 20% or 10 Students have an income of > 2,5 millions 4.2.2 Reliability and Validity of the Research 4.2.2.1 Reliability Test 35

After collect ing the data from the respondents, the first task taken was to code the answers of the respondents direct ly into a cross tabulat ion table. The coding results are presented in the Appendix. The reliability test in this research uses Alpha Cronbach. If Alpha is less than 0.6 then it is unreliable. The interpretation of Alpha Cronbach(Sekaran, 2003;311) is: < 0.6 indicates unsat isfactory internal consistency or consider that the data is unreliable. 0,7 indicates that the data is acceptable 0.8 indicates good internal consistency or consider that the data resulted is reliable. Table 4.2.1Reliability Statistics Cronbach's Alpha ,876 N of Items 3

Source: Data Processed, 2010 In this research, it shows that Alpha Cronbach is 0.876 which is upper the acceptance limit of 0.6; therefore, the research instrument is reliable.

4.2.2 Validity Test Before moving to the next step of analysis, all variables are priorit ized to test their 36

reliability and validity. This research used Pearson Product Moment Correlation Coefficient to test the validity of variables. By comparing correlat ion index in Pearson Product Moment with significance level of 5%, it can be seen valid or not a research instrument. If probability of correlat ion is less than 0.05 (5%) then the research instrument is stated as valid. Table 4.2.2 Validity Test
Correlations SS 1.000 .686 .631 . .000 .000 50 50 50 CI .686 1.000 .836 .000 . .000 50 50 50 SI .631 .836 1.000 .000 .000 . 50 50 50

Pearson Correlation

Sig. (1-tailed)

SS CI SI SS CI SI SS CI SI

Source: Data Processed, 2010 From the table above, it can be see n that the correlat ion index is greater than 0.3 and below the significance level of 5%, therefore, the data is considered as valid.

4.1.3 Testing the goodness of Fit 4.1.3.1 Coefficient of Multiple Correlation (R) and Coefficient of determination (R2) 37

Table 4.2.3 Result of R and R2

b Model Summary

Change Statistics Model 1 R R Square .694 a .482 Adjusted Std. Error of R Square R Square the Estimate Change F Change .460 .59090 .482 21.890 df1 2 df2 Sig. F Change 47 .000 DurbinWatson 2.211

a. Predictors: (Constant), SI, CI b. Dependent Variable: SS

Source: Data Processed, 2010 The coefficient of correlat ion (R) is 0.694 meaning the level of relat ionship between independent and dependent variable is considered as a substant ial posit ive relat ionship. In the other words, Cognit ive Innovativeness and Sensory Innovat iveness, as independents variables and Shopping Style as dependent variable have a substant ial posit ive relationship. The coefficient of determinat ion is ident ified by R2 = 0.482 which is the correlat ion coefficient quadrate (0.694)2 = 0.482. R Square is usually called the coefficient of determinat ion which is 0.482 or 48.2% that means Shopping Style is able to be explained by Cognit ive Innovat iveness and Sensory Innovativeness. And the rest 51.8% are caused by the other factors.

4.2.4 Result of Multiple Linear Regression Analysis The interpretation of Mult iple Linear Regression Analysisis shown in table4.1.4 38

Table 4.2.4 Multiple Linear Regression Analysis Output

Coefficientsa Unstandardized Coefficients B Std. Error 1.395 .377 .487 .177 .139 .138 Standardized Coefficients Beta .526 .192

Model 1

(Constant) CI SI

t 3.697 2.755 1.003

Sig. .001 .008 .321

a. Dependent Variable: SS

Source: Data Processed, 2010 The Mult iple Linear Regression model is used to determine the influence of several independent variables on a dependent variable. Here is computed the influence of Cognit ive Innovat iveness and Sensory Innovat iveness on the Shopping Style. The computation has done by using the SPSS 13.0 software. Computerized calculat ion ensures the accuracy of the analysis. The analysis output is described in table 4.2.4 From the result of the table above, the model is defined as:

Y = 1.395 + 0.487X1+ 0.139X2 where : Y: X1 : X2 : Shopping Style Cognitive Innovativeness Sensory Innovativeness

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1.

Constant (E) 1.395 shows the influence to relat ionship between Cognit ive Innovat iveness (X1) andSensory Innovativeness (X2) factors to Shopping Style

factors (Y), this means that if all independent variables are equal to zero, Shopping Style factor (Y) is predicted to be 1.395. 2. If the others are constant, an increase of one point in Cognit ive Innovat iveness factor (X1) will result in an average increase of at least 0.487 in Shopping Style factor (Y). 3. If the others are constant, an increase of one point in Sensory

Innovat ivenessfactor (X2) will result in an average increase of at least 0.139 in Shopping Style factor (Y).

4.1.5 Result of Classical Assumption 4.1.5.1 Multicollinearity This test is done by determining the tolerance and VIF value. This value is computed by SPSS 13.0 software as shown in table 4.1.5.1

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Table 4.5.1Multicollinearity Test Coefficients(a) Collinearity Statistics Tolerance VIF

Model 1 Constant CI SI

.926 .298

1.080 1.076

a. Dependent Variable : SS

Source: Data Processed, 2010 Since all the tolerance value is more than 2.0 and the VIF value is less than 10, the model concluded to be free from mult icollinearity. Based on table 4.1.5.1 shows the tolerance of Cognit ive Innovat iveness 0.926 and VIF is1.080, Sensory Innovat iveness is 0.298 and VIF 1.076. All the values of tolerance in independent variable are more than 0.90 and VIF is less than 5. It proves that this model is free from mult icollinearity.

4.1.5.2 Heteroscedasticity In the figure 4.5.2 were shown the result of heteroscedast icity test.

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Figure 4.5.2 Heteroscedasticity Test Output

Scatterplot

Dependent Variable: SS
2

Regression Standardized Predicted Value

-1

-2

-3

-4 -3 -2 -1 0 1 2 3 4

Regression Standardized Residual

Source: Data Processed, 2010 Figure 4.5.2. shows that the dots spreading in 0. This proves that the model is heteroscedasticity.

4.1.5.3 Normality To identify the normality test, the figure 4.1.5.3 will show the graphic result for the normality test.

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Figure 4.5.3 Normality Test Output

Normal P-P Plot of Regression Standardized Residual

Dependent Variable: SS
1.0

0.8

Expected Cum Prob

0.6

0.4

0.2

0.0 0.0 0.2 0.4 0.6 0.8 1.0

Observed Cum Prob

Source: Data Processed, 2010 Figure 4.5.3 shows that the data that is represented by the dots are spreading near following the direct ion of the diagonal line. This proves that the model is passing the normality test.

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4.1.6 Hypothesis Testing This result is intended to determine the influence of Cognit ive Innovat iveness and Sensory Innovat iveness on the Shopping Style a dependent variable part ially and simultaneously. The F-test used to determine the simultaneous effect, while the T-test is used to determine the part ial effect of each independent variable to the dependent variable.

4.1.6.1 F-test The simultaneous test (F-test) was conducted to ident ify the independent variables which consist of Cognit ive Innovativeness (X1) andSensory Innovat iveness (X2)onthe Shopping Style (Y)simultaneously.

Table 4.6.1 Simultaneous Test (F-test) Output

b ANOVA

l M

1 R r i   R i u l  T t l    .    r i t r: ( t t), SI, I  b. Dp t Vribl: SS

Su  f  Squ r 15.2 16.411 1.697

f 2 47 49

 Squr 7.4
. 49

F 21. 9

Si. .

Source: Data Processed, 2010

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H0: F1=F2=0 (Cognitive Innovat iveness (X1) andSensory Innovativeness (X2) have any influences on the Shopping Style (Y)simultaneously). H1: F1=F20 (Cognit ive Innovativeness (X1) andSensory Innovat iveness (X2) have any influences on the Shopping Style (Y) particularly).

If: Fvalue> Ftable Reject H0 Fvalue< Ftable Accept H0 By using the level of significance of 0.05 (E = 0.05) and degree of freedom (df) = 2; found: 21.890 > 8.58 Since the Fvalue is greater than Ftable, H0rejected and H1 is accepted, which means Cognit ive Innovat iveness and Sensory Innovativeness influence theShopping

Style,simultaneously. Thereby, hypothesis 1 is accepted.

4.1.6.2 T-test Table 4.6.2

Coefficientsa Unstandardized Coefficients B Std. Error 1.395 .377 .487 .177 .139 .138 Standardized Coefficients Beta .526 .192

Model 1

(Constant) CI SI

t 3.697 2.755 1.003

Sig. .001 .008 .321

a. Dependent Variable: SS

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The partial test (t-test) was conducted to ident ify the relat ion between independent variable and dependent variable partially or individually. In conduct ing t-test will be used table 4.1.6.2 above. From table were found the tvalue for each independent variable, which for Cognit ive Innovativeness (X1) tvalue = 2.755and ttable = 2.01 which tvalue> ttable = 2.755> 2.01. Therefore, H0 is rejected and H1 is accepted which means Cognit ive Innovat iveness significant ly influences Shopping Style. The analysis shows that generally Cognit ive Innovat iveness willimprove or even decrease theShopping Style. For Sensory Innovat iveness (X2) the tvalue = 1.003with the same , ttable = 2.01 which tvalue< ttable = 1.003<2.01. Therefore, H0 is accepted and H1 was rejected, that means Sensory Innovat iveness significant ly influence Shopping Style. The result showed that in general Sensory Innovat iveness will not improve or decrease Shopping Style.

4.1.7 Discussion Finally, based on the result of this research Cognit ive Innovat iveness and Sensory Innovat iveness has influence Student at Faculty of Economic SamRatulangi Manado to shopping Style simultaneously. Based on the research, that 70 or 35 Students of the respondents are female and 30 or 15 Students are male. From the quant ity and percentage, it can be seen that the amount of female respondent is the dominant gender that I was taken the data. It happen because, female student prefer to consume fashion than male. That is why, the female is have big composit ion than male. 46

About the age of respondent, most respondents is 20-23 years old with 84% or 42 persons, followed by those who are 23 24 years old wit h 8 persons (16%). It is showed that, age between 20 23 years is a productive age for trying something new for express their self in fashion. They have courage for being different as long as match wit h their personal attitude. The respondent pocket money showed that 56% or 28 Students of respondents have an income < 1 million, 24% or 12 Students have an income of 1-2,5 millions, and 20% or 10 Students have an income of > 2,5 millions. It is happen because, 56%

respondent money is depending of their parents financial. It will possible if their take a part time job. As we can see in the real life, nowadays students are wants to use the innovat iveness that could be useful in their life. Innovat iveness is how they can get the new experience to choose the new brand or exist ing product. Related to this research, Cognit ive Innovativeness has influence Student Shopping Style at Faculty of Economic SamRatulangi. From questionnaires founds that some respondents were in terms of shopping style, they inclined to choose cognit ive innovat iveness because most of student to show they shopping style such as quality of the product. Student of faculty of Economics are priority and the high recommendation to student chosen when they to shopping styling. Most another reason why Student likes to Cognitive Innovativeness is because the student is always to follow the trend of fashion style. So student are follow the trends of students who are in their shopping style. From questionnaire 47

found that most of respondents that agree with that statement are form student female. In shopping center Manado, there are many provide product and need of fashion available such as T-shirt, shirt, dress, shoes, pants, bags, etc. Cognit ive Innovat iveness related to the increasing of Shopping Style. Based on SPSS analysis, an increase in Cognit ive Innovat iveness leads to expected in increase of in Shopping Style. It means that Cognit ive Innovat iveness is the factor that gives the posit ive influence to the increasing of Shopping Style. In Cognit ive Innovat iveness the student inclined to had a price consciousness. They dont to concerned the price, because in their mindset of student the quality of product is the number 1 when they purchasing the product. Price is only one of the several costs faced by shoppers. Other purchase related costs include the t ime spent shopping, displacement costs, emotional costs. However, price is the cost that shoppers can best determine, and thus plays an important role in their decision. For example, in a recent study of shoppers selection of an outlet at which to make a purchase, price was consistently stated as a major influencing factor GfK, Shopping Monitor (2000). Such a finding is consistent with the feelings of retailers themselves, who indicate price is an important selection criterion for shoppers Agrdi and Bauer (2000). Why Cognitive innovativeness has the most significant influence to Student Shopping Style? The answer is very clearly as that already explain above which is because the shopping style is the part of lifestyle of the student at Faculty of

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Economics SamRatulangi Manado. More detail that basically, a culture of people in Manado that have a influence to decision to student shopping style. There are some reason why cognitive Innovativeness to influence Student Shopping Style. First, the people of Manado especially Student of Faculty of Economic Manadothey loves fashion, always follow a new trend and they want to be a trendsetter at the another Faculty in SamRatulangi Manado. Secondly,the culture of Manado people also has influence to shopping style. Most of people in Manado they has a priority of fashion. In Manado people thought they must has a good impression when they experimentally with their own style.Third, the behavior of Student. They put a side the price but the important is they can show to other people that they can able to buying high class fashion. In this Research, actually the student more than like to quality for a product. The y concern about the quality itself, and then no matter they will to spend the money, that has in thought just a quality of the product and the comfortable the product itself. On other hand, the brand its not a prime for a Student, but how the product can give a comfort ability when they wearing the product.

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CHAPTER V CONCLUSION AND RECOMMENDATION

In this chapter, there are some conclusions of the research and recommendat ion that can be useful for students.

6.1 Conclusion After examining the findings and discussing them, the writer finally arrived at some conclusions in this research. 1. Cognit ive Innovat iveness andSensory Innovativenessare elements have

substant ial posit ive influence to the Shopping Style. 2. The most significant element that influences Shopping Style is Cognit ive Innovat iveness. 3. The findings are, Y = 1.395 + 0.487 X1+ 0.139 X2,meaning that an increase of one unit of change in Cognit ive Innovat iveness (X1), leads to an increase of 0.487 units of change in the Shopping Style as Y, an increase of one unit of change in Sensory Innovat iveness (X2), leads to expected in increase of change in the Shopping Style as Y. 0.139 units of

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6.2 Recommendation This thesis was done wit h hope that it can be a contribut ion. There are some limitations in this thesis research but it represents some of the Student of Faculty of Economics SamRatulangi University Manado. The following are recommendat ions as input that hopefully can be useful as suggest ions.

1.

Cognit ive Innovativeness factor has the strongest influence on the Shopping Style, which state inclined to show shopping styles such as quality consciousness, price consciousness, and confusion by over choice. Thus the producer should improve the quality and price consciousness in order to increase students shopping style. The producer when they make a new product, they must

seen bout the price without to improve the quality of the product. Because the budget of student sometimes not allowed to reach the product in the store. So, for the producer have to arrange the price the product.
2. The producer also should have innovation to increase consumers innovat iveness of student shopping style. They should have a developing the product even the prices of product is cheap, but the student can feel good and comfortable when they wearing the product.

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BIBLIOGRAPHY Hanna, N., and Wozniak, R., Consumer Behavior an Applied Research, New Jersey: Prentice Hall. J. Paul Peter and Jerry C. Olson. Consumer Behavior and Marketing Strategy (7th Ed.) p.6: McGraw-Hill Irwin Kotler, Philip and Amstrong, Gary (2001) Principles Of Marketing (9th Ed.) : Prent ice Hall Internat ional, Inc. Kotler, Philip, (2003), Marketing Management, 11th edit ion, New Jersey: Pearson education, Inc. Kotler, Armstrong, (2004), Principles of Marketing, 10th edit ion, New Jersey: Pearson education, Inc. Kotler, Philip.; Kevin Lane Keller (2006). Marketing Management, 12th ed.. Pearson Prentice Hall. ISBN 0-13-145757-8. Saaty, T. L. (1980). The Analytic Hierarchy Process McGraw Hill, Inc. Sekaran,Uma, (2003), Research Method for Business A Skill-Building Approach, (3rd Ed.): John Wiley & Sons, Inc, USA

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Hanna, N., and Wozniak, R., Consumer Behavior an Applied Research, New Jersey: Prentice Hall J. Paul Peter and Jerry C. Olson. Consumer Behavior and Marketing Strategy (7th Ed.) p.6: McGraw-Hill Irwin Schiffman, Kanuk (2007)Consumer Behavior(nint h Ed.): Pearson International Edit ion.

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APPENDIX

54

KUISIONER I. PENDAHULUAN y Judul penelitian Analyzing Consumer Innovativeness to Student Shopping Style at Faculty of Economy SamRatulangi University Manado y Pernyataan-pernyataan di bawah ini bertujuan untuk mengumpulkan data yang akan digunakan dalam proses penelitian, dimana hasilnya nanti dapat memberikan manfaat bagi peneliti dan mahasiswa y Untuk maksud tersebut, dimhon kesedian anda untuk menjawab pernyataan-pernyataan di bawah ini. II. PETUNJUK y Dimohn untuk memberi tanda() pada kolom jawaban. y Informasi: Pilih 1 = Bila anda sangat tidak setuju dengan peryataan Pilih 2 = Bila anda tidak setuju dengan pernyataan Pilih 3 = Bila anda tidak yakin/ragu-ragu dengan pernyataan Pilih 4 = Bila anda setuju dengan pernyataan Pilih 5 = Bila anda sangat setuju dengan pernyataan III. IDENTITAS RESPONDENT 1. Jenis kelamin: ( ) Laki-laki 2. Umur :..Tahun 3. Pendapatan per Bulan/uang saku : ( ) < Rp. 1 Juta ( ) >diatas 2,5 juta ( ) Rp. 1 juta- 2,5 juta ( )Perempuan

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X1. Cognitive Innovativeness (kecenderungan menunjukan gaya berbelanja) 1 1. Saya membeli baju karena kualitas 2. Saya membeli baju tidak mementingkan harga 3. Saya Bingung memilih karena banyak pilihan 4. Memiliki dana khusus untuk membeli baju 5. Saya membeli baju karena trend 2 3 4 5

X2. Sensory Innovativeness (kecenderungan memiliki gaya berbelanja) 1 1. Saya memilih baju karena bermerek 2. Saya selalu melihat gaya penampilan artis dan melihat di TV 3. Saya membeli baju mengikuti kata hati 4. Saya membeli baju loyal pada merek tertentu 5. Saya membeli baju karena pengaruh lingkungan social 2 3 4 5

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Y = Shopping Style 1 1. Saya selalu mengikuti trend yang ada 2. Saya membeli baju karena kebutuhan 3. Saya membeli baju karena mengikuti teman 4. Saya memakai uang saku untuk membeli baju 5. saya sering membeli baju kalau diskon 2 3 4 5

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