Adhiwira Indrabrata - Thesis
Adhiwira Indrabrata - Thesis
UNDERGRADUATE THESIS
ADHIWIRA INDRABRATA
1606898192
UNDERGRADUATE THESIS
Submitted as one of the requirements to obtain the title of Sarjana
Ekonomi
ADHIWIRA INDRABRATA
1606898192
This thesis represents my own work and any idea or except from other writers in
this paper have been acknowledged in accordance to academic standards and
reference procedures.
NPM : 1606898192
Signature :
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VALIDATION PAGE
This thesis was successfully defended in front of the Board of Examiners and
was accepted as part of the requirement to obtain the title of Sarjana Ekonomi
from the International Undergraduate Program, Faculty of Economics and
Business Universitas Indonesia.
BOARD OF EXAMINERS
Established in : Depok
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ACKNOWLEDGEMENTS
Praise the authors pray to Allah SWT, because thanks to Allah SWT guidance and
grace the writer can finish this thesis well. The topics chosen regarding the context
of personalised advertisement discussed in this undergraduate thesis was chosen
because of the author personal interest and enthusiasm for the current technological
developments in social media and his high enthusiasm for the current development
of fashion brands in Indonesia, particularly footwear brands. The researcher hopes
this thesis can contribute and be implemented within the related industries. Then,
the writing of this thesis was carried out in order to fulfil one of the requirements
to obtain Sarjana Ekonomi degree from the International Undergraduate Program,
Faculty of Economy and Business Universitas Indonesia. From the very beginning
of this thesis writing process, the author has received a lot of support, assistance,
and guidance from various people. Therefore, the researcher would like to
acknowledge and thank:
1) Beloved family, Ayah, Ibu, Gita, Aila that always support and pray for the
writer’s success upon pursuing his study.
2) My thesis advisor, Dr. Ir. Tengku Ezni Balqiah, M.E. that always guide and
give constructive feedbacks during the writer’s process of finishing this
undergraduate thesis and furthermore insights that the writer’s learn during
consultation session and writing process of this undergraduate thesis.
3) This thesis board of examiners, Ms. Ira Iriyanty S.E., M.S.M. and Prof. Dr.
Adi Zakaria Afiff, S.E., M.B.A. for the constructive critics and feedbacks
that the writers acquire to improve this undergraduate thesis.
4) All the lecturers and academic staff in FEB UI that give the writer valuable
knowledge and experience during the writer study in FEB UI. And, to Mr.
Rahmat Aryo Baskoro, S.E., M.M., CFP., AEPP as the writer’s academic
advisor and head of Fastur Unit in FEB UI that constantly giving his time
and help during the writer’s study and time in Indonesia Capital Market
Student Studies and Management Student Society FEB UI.
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5) Mr. Fahrudin and all International Undergraduate Program academic staffs
that helped the writer on academic and the writing process of this
undergraduate thesis.
6) Natashah Amellie that always give the writer positive influence and
encourage the writer to be a better person each day. Thank you for being
here, for being my support system, thank you for everything.
7) Fellow brothers within Yakuyza Kukusan, especially Christo Pierre, Arif
Yosia, Yusuf Rabiultsani, Rangga Yusuf, and Adek bagus Rangga that
creates so much memories during the writer’s study in FEB UI and the
writing process of this undergraduate thesis feel unique and burden free.
8) Beloved “Fight Club” members that have been “fighting” together since the
days of putih abu-abu, especially Fatur and Arwan my fellow FEB UI
brothers, Deno, Eky and Faiz, Falah, Gagas, Faiz, and Ibnu. Thank you for
all the support and laughs.
9) Christo Pierre and Arif Yosia that helped the writer on so many things in
life and especially constructive advice and support during the writing
process of this undergraduate thesis and moreover the preparation during
thesis defence.
10) Fellow friends in Bybyt Unggul , thank you for all the unique and fun
memories during the writer’s study in FEB UI.
11) Irfan Sutarsa, Fitra, Fadli, Aufar, my friends since junior high school, thank
you for all the support, friendship, and the laughs.
12) LDR Group especially Sukit, Kura-Kura, Opung, and Bocil, thank you for
this surprising yet beautiful friendship that we create and all the laughs,
memories, the writer wishes this friendship will last despite of its name.
13) Mergers group, Andrea, Atikah, Irsa, Jeje, Hafizh, Rifqi, Aryo, Falah, Ariq
and Arwan, thank you for all the support and help since high school up until
now.
14) Korea Simple House members, Qidsa, Ewing, Reynaldi, Sultan and
Ibrahim. Thank you for the knowledge, laugh, and experience during the
writer’s study in FEB UI and times in Hanyang University, South Korea.
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15) Operation Division The 16th Indonesia Capital Market Student Studies
(ICMSS), Adek Bagus, Westy, and Hilmy. Thank you for the valuable
experience, support and friendships that the writer gets to experience.
16) Fellow directors of Operation Division The 17th Indonesia Capital Market
Student Studies (ICMSS) especially Risa, Rangga, and Arman, and
associates, Favian, Tebe, Rani, and Robo, thank you for all the experience,
laugh, tears during those memorable times.
17) Project Division of Management Student Society FEB UI, especially Yusuf
and Sultan, Leandra, Aurora, and Naufal. Thank you for the valuable
experience.
18) Fellow internship friends in Bank Indonesia especially Aldi, Bariq, Kamil,
Fadiah, Fatur, and Galang which made the internship time very interesting
and unique.
19) Dr. Trang Phuc Tran, one of the authors of this undergraduate thesis
reference journal, thank you for the insights and help.
20) Fellow friends on Faculty of Economics and Business Universitas
Indonesia especially batch 2016. It is an honour to get to know all these
superb people that will be leading this nation later in the future. Thank you
for all the experience that can never be replaced.
21) With all due respect, the writers would like to acknowledge and thank all
the parties that cannot be mentioned each one that gave support during the
writer’s effort in finishing this undergraduate thesis.
Adhiwira Indrabata
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APPROVAL PAGE OF FINAL ASSIGNMENT PUBLICATION
FOR ACADEMIC PURPOSES
Along with the related materials (if necessary). With the non-exclusive royalty-free
right, Universitas Indonesia has the right to store, format/reformat, manage in
database form, maintain, and publish this undergraduate thesis under the condition
of listing my name as the writer and the copyright holder.
Created in : Depok
Declared by :
(Adhiwira Indrabrata)
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ABSTRACT
Along with the increasing level of internet penetration in Indonesia, the current
developments encourage people to familiarize and adopts variety of internet-based
products and service especially Instagram as social media in Indonesia. Amidst
these opportunities, businesses that are particularly preferred in current lifestyle like
local footwear brand can take advantage by being present on Instagram to foster
their relationship with their consumers through personalised advertisement. This
quantitative research is constructed to analyse the effectiveness of personalised
advertisement by proposing key driver namely perceived personalization and self-
expressive brands that predicts consumer brand engagement, brand attachment and
its effect towards perceived quality and brand loyalty. A total of 386 respondents
that are Instagram users and consumers of four local footwear brand were collected
using purposive sampling method and the data was processed using Partial Least
Squares – Structural Equation Modelling (PLS-SEM). The findings suggest that
perceived personalization and self-expressive brand within personalised
advertisement affect the consumer’s brand engagement and brand attachments.
Whereby, consumer brand engagement and brand attachment play an important role
on affecting the perceived quality. Lastly Brand attachment and perceived quality
also found to influence the consumer’s loyalty toward a brand.
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ABSTRAK
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TABLE OF CONTENTS
CHAPTER I ....................................................................................................... 1
INTRODUCTION ............................................................................................. 1
1.1 Research Background ........................................................................... 1
1.2 Problem Definition ............................................................................... 9
1.3 Research Purpose ............................................................................... 10
1.4 Research Implications......................................................................... 10
1.5 Research Scope .................................................................................. 11
1.5.1 Research Respondents .................................................................. 11
1.5.2 Geographical Scope of Research ................................................... 11
1.6 Research Structure .............................................................................. 12
CHAPTER II ................................................................................................... 14
LITERATURE REVIEW ................................................................................ 14
2.1 Consumer Behaviour and Decision Making ........................................ 14
2.2 Marketing Communication ................................................................. 16
2.2.1 Advertising ................................................................................... 18
2.3 Digital Marketing ............................................................................... 19
2.4 Social Media and Instagram ............................................................... 20
2.4.1 Personalised Advertisement on Instagram ........................................... 20
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2.5 Brand ................................................................................................. 21
2.6 Perceived Personalization ................................................................... 23
2.7 Self-Expressive Brand ........................................................................ 24
2.8 Consumer Brand Engagement ............................................................ 25
2.8.1 Cognitive Processing (Cognitive).................................................. 27
2.8.2 Affection (Emotional) ................................................................... 27
2.8.3 Activation (Behavioural)............................................................... 27
2.9 Brand Attachment............................................................................... 28
2.9.1 Affection ...................................................................................... 29
2.9.2 Connection ................................................................................... 30
2.9.3 Passion ......................................................................................... 30
2.10 Perceived Quality ............................................................................... 30
2.11 Brand Loyalty..................................................................................... 31
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3.8.4.1 Hierarchical Component Models: CBE and BA ..................... 56
3.8.4.2 Measurement Model Analysis (Outer Model) ....................... 57
3.8.4.3 Structural Model Analysis (Inner Model) .............................. 60
CHAPTER 4..................................................................................................... 63
ANALYSIS AND DISCUSSION ..................................................................... 63
4.1 Wording Test and Pre-test Questionnaire Analysis ............................. 63
4.2 Frequency Distribution Analysis......................................................... 66
4.2.1 Gender .......................................................................................... 67
4.2.2 Age ............................................................................................... 67
4.2.3 Level of Last Pursued Education or Current Pursued Education .... 68
4.2.4 Employment Status ....................................................................... 69
4.2.5 Domicile ....................................................................................... 70
4.2.6 Monthly Spending ........................................................................ 71
4.2.7 Marital Status ............................................................................... 72
4.2.8 Purchased Brands ......................................................................... 72
4.2.9 Recently Bought Brands ............................................................... 73
4.2.10 Length as Followers of the Brand Instagram Accounts .................. 74
4.2.11 Social Media Used ........................................................................ 74
4.2.12 Average Time Spent on Social Media per Day .............................. 75
4.3 Descriptive Statistics .......................................................................... 76
4.4 Measurement Model Analysis (Main-Test) ......................................... 81
4.4.1 Reflective Measurement Model Evaluation ................................... 81
4.4.1.1 Internal Consistency Evaluation ............................................ 82
4.4.1.2 Convergent Validity and Discriminant Validity Evaluation ... 83
4.5 Structural Model Analysis .................................................................. 88
4.5.1 Collinearity Evaluation ................................................................. 88
4.5.2 Coefficient of Determination (R2) Evaluation ............................... 89
4.5.3 Predictive Relevance (Q2) Evaluation ........................................... 90
4.5.4 f 2 Effect Sizes, q2 Effect Sizes, & SRMR Evaluation .................... 91
4.5.5 Size and Significance of Path Coefficient (Direct Effect) Evaluation
93
4.6 Hypotheses Testing Result .................................................................. 95
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CHAPTER V .................................................................................................. 105
CONCLUSION .............................................................................................. 105
5.1 Conclusion ....................................................................................... 105
5.2 Managerial Implication..................................................................... 106
5.3 Research Limitations ........................................................................ 111
5.4 Recommendation for Future Research .............................................. 112
REFERENCES .............................................................................................. 113
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LIST OF TABLES
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LIST OF FIGURES
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LIST OF ATTACHMENT
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CHAPTER I
INTRODUCTION
Along with the rapid growth of Internet penetration level in Indonesia that
covers 56% of the populations, the digital environment is also rapidly evolving
where now it presents variety of digital based products and service to be chosen
(Hootsuite, 2019). The products vary from Entertainment Streaming Applications
(ESAs), ride hailing service, food delivery services, banking, and social media
(Hootsuite, 2019). The Improvement within the digital environment create changes
as according to the Technological Readiness Report, Indonesia’s score index on
how prepared Indonesia is to face technological changes improved from the
previous rank in 2017 of 69 with the score of 3.25 to rank 67 with the score of 4,375
(Economist Intelligence Unit, 2018) in which signals improvement that Indonesia
is currently embracing digitization.
Presented with variety of digital based products and services and
digitization at hand, one of the most used digital products by people in Indonesia
is social media that currently have active users with size around 56% out of the
total populations of Indonesia (Hootsuite, 2019). Social media as a form of online
social networking services offers an enchantment in terms of information
communication technologies as individuals are able to communicate easily and
could seek out other individuals opinion about specific topics through social media
such as about products and service to satisfy their role as customer to seek rich
information which creates opportunities for firms to engage in social media and
adapts and shifts their digital marketing strategies that can closely match the
customers desire to provide customers the needed information based on their
preferences and habits while also gather feedbacks, data and moreover promoting
two-way interaction as a form of engagement to strengthen relationship between
firms and the customer (Tiago & Veríssimo, 2014).
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Furthermore, Social media are a rich platform for brands that seeks to
stimulate consumer’s hedonic goals. (Spiller, Tuten & Carpenter, 2011). In which
when the consumption of the goods is driven by an affective and sensory experience
(Hirschman and Holbrook, 1982). Hedonic objectives are often associated to
shopping in which the reason to conduct shopping is to satisfy the goal to reach
enjoyment, pleasure, social experience, and entertainment (Babin et al., 1994).
Which are commonly found within the context of fashion shopping and are
associated with adventure shopping motivation to satisfy the individuals desire to
be different from the ordinary and idea shopping motivation that drive the
customer’s willingness to learn new styles and noticing the current products and
innovations to keep up with the trend in fashion (Kang & Park-Poaps, 2010).
Regarding fashion, fashion in Indonesia is considered to be one of the highest
shopped category in online shopping that reached 2.3 billion USD spent by the
consumer (Hootsuite, 2019).
2015 34,125.6
2016 36,716.4
2018 41,656.6
2019 44,616.5
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growth each year, it can be inferred that there is a growing domestic demand for
footwear in Indonesia, presenting an opportunity within the market for businesses
within footwear industries. Within the industries itself, Kementrian Perindustrian
Republik Indonesia stated that the local footwear industries also experienced a
significant growth in production especially within the period of 2017-2018. Within
2018, the local footwear industries were able to reach peak growth in seven years
period of 9,42% in which also surpass significantly the 2017 growth that only reach
2,22% (Kemenperin, 2019). And within the course of 2018, Indonesia’s footwear
industry export value is also growing to 4,13% reaching 5,11 billion USD from the
previous year value of 4,91 billion USD (Kemenperin, 2019).
Presented with such market opportunities, according to an article published
by Badan Ekonomi Kreatif Indonesia, fashion industry which include footwear is
also considered to be one of the biggest contributing subsector within Indonesia
creative economy and within the top 10 of the most purchased item on e-commerce
platform (Munaf & Pesik, 2019). From these article it can be inferred that there is
also an outgoing preference toward local footwear within the Indonesia market, in
which is also corroborated by consumer insight report published by Deloitte South
East Asia from a 1500 representative samples that local clothing and footwear
category are improving in terms of purchase preference with 96% of respondents
expressed this preference from the previously 86% from 2018 with reasons
predominantly being affordable (Wee Meng, 2020). Even so, local footwear is still
in heavy competition with foreign brands within the market in which are more
preferred in terms of their perception of quality and moreover trust compared to
local footwear brand (Wee Meng, 2020). Despite of the opportunities, based on this
consumer insight survey, indeed there are challenges for local footwear brands in
terms of their quality perception and trusts and commitment of the consumers. On
tackling these marketing problems, previous research by Shanahan et al., (2019)
imply that the current digital platform promotes opportunities for brands to employ
digital marketing efforts by promoting their products and service while also
strengthening their consumer relationship with the brand through personalised
advertising. Past studies by Shanahan et al. (2019) on Facebook found personalised
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conduct research before buying. In terms of online behaviour, 87% out of the
people surveyed also said that after they seek for information on Instagram about
certain brands or products, they took several actions such as following the brand,
visiting the website and even conduct purchase activity. The research also states
that people they surveyed perceived a brand as popular (78%), creative (77%),
entertaining (76%), and relevant when they have presence on Instagram. A survey
by Ipsos also corroborate a similar findings in which that 81% of Instagram users
in Indonesia uses Instagram to learn about a brands that they interested in, and
moreover 76% of Instagram users also claimed that after discovering the brands on
Instagram they conduct purchase from that corresponding brand that they discover
(Ipsos, 2018). These shows that the current landscape of local footwear industries
and opportunities presented by social media particularly Instagram in Indonesia will
present growth in the upcoming days, therefore this research will emphasize toward
a business problem of local footwear brands that seek to leverage their presence on
Instagram by using Instagram advertisement as a personalised advertising scheme.
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Portee Goods. Among these four brands, Brodo, NAH Project, and Geoff Max also
acquire a significant search query trends from the period of February 2019 –
January 2020 in google trends that represents Indonesia’s interests toward these
brand popularity as stated in article written by Krisdamarjati (2020) on Litbang
Kompas research article. Furthermore, these select of brands are also identified to
still be airing Instagram advertisement in recent days that fit the requirement of the
business problem this research try to investigate. Following the business problems
in which covers opportunities present in both digital and local footwear landscape
of Indonesia also the challenge that local footwear brands currently facing regarding
their quality perception and how to strengthen the consumer’s trusts to build brand
loyalty, this research will cover the marketing problem in which whether
personalised advertising scheme can be leveraged to stimulate consumer brand
engagement and brand attachment in which can predicts positive quality perception
and brand loyalty of the brands.
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purchase a product if that product gives unique value that no other product can
imitate (Chaudhuri & Holbrook, 2001). Following a positive response towards a
brand a consumer can feel happy and develop brand loyalty (Chaudhuri &
Holbrook, 2001). Based on the explanation above, this research will also study the
effect of perceived quality towards brand loyalty.
Furthermore, as a modification, the researcher also adds self-expressive
brand toward the model to investigate the effect toward consumer brand
engagement and brand attachments from the model developed by this research core
reference journal by Shanahan et al. (2019). Self-expressive brand is added based
on the inspiration from previous study by Algharabat et al. (2020) and Lee and
Workman (2015). In addition to that, considering this research are carried to study
the effect of brand’s personalised advertisement on Instagram. Instagram
advertisement allows the advertisement to be incorporated with the same functions
of interactions within an organic content of social media such as like, comment, and
share. Therefore, on the social network, such interactions effort by user in social
media asserts the level of engagements in which they consider the brand to be one
of their part of online self-expression (Algharabat, 2017). In the context of
personalised advertising in social media (Facebook), these engagements are
typically seen through whether the brand congruent signals stimulate the users to
like, comments as interactions that can show their online extended self to others
through the advertisement (Tran, 2017).
According to consumer culture theory, symbolic and experiential features
of a brand that consumer’s experience with a brand can enhance one’s self-identity
(Brodie et al., 2013) therefore asserting the conceptual relationship of self-
expressive brand and consumer brand engagement. Relationship theory also imply
that brand relationships facilitate oneself with the opportunities that he or she can
improve the definition of themselves by the formation of value, worth, social
identity and peer evaluations that indicate social impression formations (Fournier,
1998). Social impression formation is affected by cues displayed and used by
brands carried with a proper linguistic power to express and relate to one’s personal
life through the cues within marketing activities (Lee and Workman, 2015). Self-
concept theory also asserts that individuals can maintain their self-concept by using
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Referring to the research background above, this research will be focusing on a core
problem at investigating the effect of perceived personalization and self-expressive
as a driver that could lead to perceived quality and brand loyalty in the context of
personalization of advertisement carried on Instagram by local footwear brands as
the chosen entity within the fashion industry due to the current improvement its
experiencing. Aside from the modification to the industries and addition of variable
namely self-expressive brand, this research is referring to a prior research
conducted by (Shanahan et al., 2019). Therefore, the proposed research question
that will be investigated are as follows:
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The purpose of carrying out this research is to answer the proposed research
question above in the context of personalized advertisement on Instagram and
structured as follows:
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research can also fil the research gap and be used as reference for a research
regarding personalization and its consequence on social media context.
This research will choose respondents from both gender group of male and
female and are within the age group of 18-34 years old which according to
Asosiasi Penyelenggara Jasa Internet Indonesia is the age group with the
highest percentage of internet user by 49,52% and accounts from the total
population of Indonesia (APJII, 2019) and accounts for 71,80% from the
total of Instagram users in Indonesia (Statista, 2020). Since the research will
be investigating the phenomenon on the customers of several local footwear
brands that deliver personalized advertisement in Instagram, the
respondents then will be focused on those who uses Instagram that follow
(Brodo/Portee Goods/Geoff Max/NAH Project) Instagram page and owns
at least one product from the stated brands.
Data collection of this research will cover the geographical domain of Java
island where according to the data from Asosiasi Penyelenggara Jasa
Internet Indonesia, Java accounts for the highest concentration of internet
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users compared to other area in Indonesia by having 55% from the total of
internet user in Indonesia (APJII, 2019).
In terms of the report writing structure, this research will be divided into five parts
as follows:
Chapter 1 – INTRODUCTION
Chapter 1 will introduce and explain the research background or why this research
is proposed, problem statement, research purpose, and the expected contribution
from this research. In addition to that, chapter 1 will also explain the research scope
starting from the research participants or respondents, geographical scope of the
research, and the timeline of research.
Chapter 2 will describe various theory and conceptualization used within the
research. So, the conceptualization will cover the concept of consumer behaviour,
digital marketing, marketing communication, brand, social media, personalised
advertising and moreover the concept of each variables namely perceived
personalization, self-expressive brand, consumer brand engagement, brand
attachment, perceived quality, and brand loyalty.
Chapter 3 will cover the description of the research model, proposed hypothesis,
research approach, variable operationalization, type of data, sampling method, data
collection method, and data processing and analysis method that will be used on
this research.
Chapter 4 will be utilized by the researcher to present the result of data processing
included with the researcher analysis and discussion to answer the problem
statement and research question described previously on chapter one.
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Chapter 5 as the last part of the structure will be utilized by researcher to draw
conclusions from this research and formulate recommendation that can be
considered by related parties or businesses within local footwear industries in terms
of decision making when formulating a marketing strategy within the field of digital
marketing by considering the investigated result of consumer behaviour within this
research. In addition to that, chapter 5 will also describe the research limitation and
suggestion for future research in the similar field that can be considered by other
researcher in near future.
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CHAPTER II
LITERATURE REVIEW
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cognitive learning or behavioural learning, and the marketing actions that the
consumers come across for example a product display as environmental cues or
advertising through web sites, salespeople, etc (Solomon, 2009). Overall, consumer
decision making process includes three stages which are the input, process, and
output stages of decision making (Schiffman et al., 2005). Within input stage, there
are two influencing factors that is faced by the consumer as decision maker, first is
the firm’s marketing mix (i.e. product, price, promotion, and place where the
product is sold), second is the sociocultural influences such as the consumer’s
relatives, cultural and subcultural entities that influence the consumers through
different kind of communication methods (Schiffman et al., 2005).
Second, the process stage that highlight how consumers make decisions that
is influenced by psychological factor such as motivation, perception, learning,
personality, and attitudes (Schiffman et al., 2005). These psychological factor or
internal influences affect those aspect within the input stage on how consumer’s
process their recognition of need, search of information, and evaluation of
alternatives that in turn can become a part of consumer’s psychological factors
through the process of learning (Schiffman et al., 2005). These internal influence
then create a drive on consumers to conduct the decision making process, for
example motivation can be the internal state that activates consumers to satisfy their
needs through a goal-oriented behaviours (Solomon, 2009). Then information
search can be affected by what is called perception in which is the process on how
people select, organize, and interpret information (Solomon, 2009). The acquired
information then can affect learning or a change in behaviour caused by the
acquired information or experience in which can be described into two forms of
behavioural learning that is caused by the consumers connections with external
events or stimuli, and cognitive learning that highlight consumers mental processes
in solving problems through acquiring information (Solomon, 2009).
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toward a person, object or issue also influence the decision-making process through
three components. Those three components are affect or emotional responses,
cognition or beliefs and knowledge a consumer have toward a products, and
behaviour or consumers intention to do something (Solomon, 2009).
The last process is the output stage that covers the post-decision activities
which comprises of consumer purchase behaviours on whether or not the consumers
conduct purchase activity on their product choice and also post-purchase evaluation
that may result on no-repurchase or re-purchase that can further be traced to trust
and loyalty (Schiffman et al., 2005). These sequence however can be different in
terms of order, and duration between conventional offline environment and digital
environment (Court et al., 2009; Edelman and Singer, 2015). For example, on
digital environment customers can gather information from a search engine or read
other customer’s review from an online forum, or further back, even the initial idea
of demand to purchase could be stimulated by just seeing a post on social media
(Kannan & Li, 2017). Therefore, Consumer behaviours is a field that study
consumers process of searching, purchasing, using, evaluating, and disposing of
products and services to satisfy their needs and desires (Schiffman et al., 2005).
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2.2.1 Advertising
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Aided by Digitals technologies that is changing rapidly and are also causing
a shift in environment where firm operates and create a reduction in Information
asymmetries between customers and sellers (Kannan & Li, 2017). firms are now
able to foster their digital relationship and allow conversation with its customer
through reaching the customer digital touch points that is bridged by digital
conversation interfaces (Alkhateeb et al., 2008). Facilitated through the creation of
Web 2.0, this technical infrastructure enables the creation of interactive websites
by firms that encourage and facilitate participation from the users (Tapscott &
Williams, 2007). Through the foundation of Web 2.0 social media as a product
facilitate as conduits that transmit content through the interactions between
individuals and organization (Kietzmann et al., 2011) where it allows consumers as
users to participate and generate value through the consumer-generated media (i.e.
reviews, posts) that promotes the brand (P. Berthon et al., 2008; Muñiz Jr & Schau,
2011). As of now, according to American Marketing Association, digital marketing
is defined as the utilization of digital or social channels to promote a brand whilst
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also reaching the consumers and are predominantly executed through social media,
search engine, internet, mobile device and other channels (AMA, 2020).
Social networking sites are an application that enables its users to connect
and invites their friends and colleagues to access the profiles, and sending instant
message to each other through the creation of personal profile (Kaplan & Haenlein,
2010). As a social networking site, Instagram is defined as a service in which are
available for smartphones and other mobile devices that allow users to share photo
and videos with other users (Gibbs et al., 2015). As a core photo and video sharing
social networking site, Instagram allows user to choose different format and also
adding written descriptions toward the posted photograph or videos (Gibbs et al.,
2015).
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2.5 Brand
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Self-expressive brand has also been discussed within the self-concept theory
(Graeff, 1996). Based on the self-concept theory, individuals or consumers of a
brand can uphold their self-concept through the brands and products of that brand
that they own. While the consumers consider that their ideal or actual self-concept
are in match with the brand’s personality, the development of self-congruence
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between the individuals and with the brand will be fostered (Wallace et al., 2017).
Self-expressive brand also provides important aspect for social integration such as
being a symbol of personal accomplishment in which can differentiate themselves
from other and thus shows their individuality (Escalas and Bettman, 2005;
Schembri et al., 2010). Brands is linked to the consumer’s self when a brand is able
to assist consumers to achieve a self-motivated goals (Escalas & Bettman, 2005).
Within the context of social media, previous research by Jensen Schau and Gilly
(2003) implies that social networks assist by providing platform for consumers to
project their “ideal-self” when expressing themselves with the brand. Previous
research by Tran et al. (2020) posits that nowadays brands can be established within
the social media environment (Facebook) in which by taking advantage of
personalised advertisement on Facebook, after the consumer’s search a brand and
then exposed to the advertisement. The findings from the research by Tran et al.
(2020) also suggest several positive outcomes of brand self-congruence in which
personalised advertising that are congruence with the consumer self will lead to
positive impacts such as, consumer-brand identification, engagements and
relationships and lastly it can predicts loyalty.
Engagement is when people pursue a goal that fits their orientation so that
they experience a stronger reaction to the activity (Avnet & Higgins, 2006). An
engagement experienced by a customer is a motivational state that is caused by
interactive, co-creative customer experience towards an object (e.g. a brand)
(Brodie et al., 2011). Consumer brand engagement can be determined when a
consumer include important brand as part on how a consumer’s view themselves
among other (Sprott et al., 2009). Consumer brand engagement is also focused
within the area of cognitive, emotional, and behavioural of consumers during a
specific interaction with a brand within the offline consumer brand engagement
context (Brodie et al., 2011). Building on the digital environment of social media
on this research, previous research by Eigenraam et al. (2018) implies that digital
customer engagement is interactions such as talking, learning, or working activities
related to a brand within the online environment. With the presence of social media,
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Pillai and Chauhan (2015) also implies on their research about social commerce on
Facebook, social media as the platform enable brands to conduct a real-time
customer engagement that can foster relationships between the customer and the
brand. Within its conceptualization, the current advancement of research on
consumer brand engagement is quite limited and there are differences on measuring
consumer engagement as an unidimensional concept or multidimensional due to the
variety of field being studied for consumer brand engagement (Brodie et al., 2011;
Hollebeek et al., 2014; Leckie et al., 2016). Previous research by Dessart et al.
(2016) implies that on developing customer engagements, there are two main
aspects that became the pillars of customer engagement which are brand
engagements and community engagements where in details consist of affective
aspects such as enthusiasm and enjoyment, behavioural aspects represented with
sharing, learning, and moreover endorsing the brand while lastly cognitive aspects
that consist of customer’s attention and absorption.
Since this research will be focused on consumer brand engagements on
social media, particularly Instagram as the platform that enable brand to deliver
personalised advertisement and its effect toward consumers of local footwear brand,
referring to Hollebeek et al. (2014), from their research that studies consumer’s
perspective of engagements toward a brand studied on social media, consumer
brand engagement is defined as how a consumer is able to cognitively valence and
react based on their emotional and behavioural aspects toward all activities
conducted by brands on social media platforms, in which are more focused to reflect
the interactively generated nature of consumer brand engagement in terms of
interactive experience on social media that a consumer experience with a particular
brands (Hollebeek et al., 2014). In which that it is viewed as an experience when
consumer is being somewhat cognitively, emotionally, and/or behaviourally
engaged (Brodie et al., 2011; Hollebeek et al., 2014).
Consumer brand engagement indeed possessed conceptual relationship with
emotional brand attachment but are conceptually distinct since brand attachment
that are emotionally led are found as the potential consequences of engagements
which is a result from a consumer’s specific interactive experiences processes with
a focal brand (relational consequences) (Brodie et al., 2011). This rationale is
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activation which address the level of consumer’s energy, efforts, and time
spent when interacting with the focal brand (Hollebeek et al., 2014). This dimension
of consumer brand engagement reflects the consumers’ willingness to invest
significant time or effort during their interaction with their selected brands
(Hollebeek et al., 2011). From social exchange theory perspective, activation
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(2007) highlight the degree of the brand’s linkage toward the self represents a “hot”
affect toward the brand. Ball and Tasaki (1992) also implies that the strength of
emotional attachment toward a brand is formed by the degree of association
between the objects toward a significant events or people that the individual
consumers may found attachment to in which indicates that the strength of
attachment between the person and the brand is subject to a length of experience
and dependence between the person and the objects.
In the context of attachment toward a brand, brand attachment is defined as
the strength of connection between a brand with the consumer (Whan Park et al.,
2010). This connection between the consumers and the brand is characterized by
feelings of affection, connection, and passion (Thompson et al., 2005). affection is
described as consumer’s feeling of peace, love, and friendliness to a particular brand
(Thompson et al., 2005), connection refers to the feelings of bond towards a brand
(Thompson et al., 2005), whereas passion is described as a delightful and
captivated feeling that consumer experience with a certain brand (Thompson et al.,
2005). It is argued that when a consumer is attached toward a brand is more likely
to show commitment towards it and are willing to make sacrifices for the brands
(Thomson et al., 2005; Park et al., 2006).
2.9.1 Affection
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2.9.2 Connection
2.9.3 Passion
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alternatives. Previous research also highlight that a high perceived quality is the
result of consumer’s long-term experience with the brands where it enables the
consumers to recognize the brands differentiation and superiority relative to other
brands (Zeithaml 1988). In line with previous research by Zeithaml (1988), Prior
research founds that producers are competing to produce high quality products to
create good perception and experience for their customer. (Kemp, 2005; Kyoon and
Ah Park, 2007; Raj and Roy, 2015).
Furthermore, it is also implied that brands create good perception on their
quality towards their customer in order to display superiority in which allows
consumers compare their brand with the alternatives (Aaker, 1991). Therefore,
upon defining perceived quality, this research follows the definition by Zeithaml
(1988) which implies perceived quality as a consumer judgement regarding product
or service superiority and excellence and a positive perception towards a brand
feature such as their product or service that are closely linked to the consumers
preference, satisfaction and purchase choice. Within the field of advertising, Yoo
et al. (2000) also identifies that a brand that is highly advertised usually is perceived
with high quality. In the online social media context, particularly personalised
advertising in social media, research by Shanahan et al. (2019) found that
personalised advertising positively improves consumer’s perception of quality in a
brand, with a tendency to perceive the brand as high quality. In similar vein, social
media is a significant source of information for consumers in which brands can
reflect their product quality and also enabling the consumer’s to promote the
perceived quality to other consumers through their own user generated content (Li
and Bernoff, 2011; Schivinsky and Dabrowski, 2015).
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RESEARCH METHODOLOGY
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particularly Instagram as visual-first photo and video sharing social media allow
brands to enhance the relationship with their consumer’s by displaying virtual
marketing cues of their brands within the advertisement to enhance the consumer’s
self-identity thus allowing themselves to express their ideal-self in social media
environment. Therefore, the researcher adds self-expressive brand toward the
research model.
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attachment towards the brand. Referring to the past research findings above,
several hypotheses can be developed such as.
In addition to that, Kim & Sherman (2007) founds that when a brand
can be congruent with one’s individual self-concept and in which it allows
them to express himself or herself, it can lead to increased commitment
toward the brand. Previous research by Lee and Workman (2015) also
highlight that there is a positive relationship between self-expressive brand
and brand attachment. Lee and Workman (2015) also stated that a brand can
help customer to better define and enhance their inner self and image
through product promotion in which also help the consumers to acquire the
products easily. Therefore, in the context of personalised advertisement, the
researcher hypothesizes
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which a certain product or service generate unique value that other brand
could not imitate (Chaudhuri & Holbrook, 2001). Similar findings also
highlight that there is a positive relationship between the quality subjective
judgement of a brand toward brand loyalty as indicated with repetitive
purchase behaviour (Erdoǧmuş & Büdeyri-Turan, 2012; Shanahan et al.,
2019).
Researcher collect two type of data which are primary and secondary data.
Secondary data that is used by the researcher is used to construct research
background and to help the researcher understand the current condition of social
media and local footwear brand in the current days. In terms of primary data, the
researcher will use a primary data that will be collected directly by the researcher
in order to answer the research problem (Malhotra, 2010). Primary data is
categorized into two forms which are qualitative data and quantitative data. On this
research, researcher will be using quantitative data. The data collection method for
this research is self-administered survey. Under self-administered survey method,
a questionnaire will be distributed online through social media where respondent
will be directed to the questionnaire page in a form of Google Form to be filled
individually by each of the respondents.
In terms of questionnaire items, this research will use a structured question
with a close-ended type of question for all the questions. In addition to that, the
questionnaire items will require the respondents to fill in their demographic data.
To measure the variables this research will adopt measurement scales from previous
studies. Perceived personalization will be measured using an adaptation from one
of the component of 8C Framework specifically customization by (Srinivasan et
al., 2002), Self-expressive brands adopted from (Carroll & Ahuvia, 2006),
consumer-brand engagement scales will be adapted from (Hollebeek et al., 2014),
then brand attachment adapted from (Thompson et al., 2005), lastly perceived
quality and brand loyalty measurement scale is adapted from (Yoo & Donthu,
2001). Since all the constructs will be asked in the questionnaire using 7-point
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Likert scale, the responses will be recorded following the scale (1) will be “strongly
disagree” and up to scale (7) being “strongly agree”.
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Feeling of
being a unique
customer due
to the
PP4
exposure of
advertisement
from a brand
in Instagram
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Advertisement
of a brand on
Instagram
symbolizes
SEB 1
what kind of
person
someone really
is
Advertisement
of a brand on
Self-Expressive SEB 2 Instagram
brand is a Carroll
reflect oneself
consumer &Ahuvia,
personality
(2006) in
perception of
Advertisement Algharabat
the degree to
of a brand on et al (2020)
Self-Expressive which a brand
N/A Instagram is
Brand (SEB) reflects his or SEB 3
viewed as an
her inner self
extension of
the inner self
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perceive that
the likely
Perceived quality quality of a
PQ2
brand is
is a subjective
extremely
judgement
high
regarding
superiority and perception
excellence of a that the Yoo and
product or service likelihood of Donthu
Perceived PQ3 a brand (2001) in
with a positive N/A
Quality (PQ) would be Shanahan
perception that is
functional is et al (2019)
linked to
consumers very high
preference, perceive that
satisfaction and the
purchase choice likelihood of
PQ4
a brand to be
(Zeithaml, 1988) reliable is
very high.
Perception
that a brand
PQ5 must be of
very good
quality
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The questionnaire that will be used on this research will be formed with a
structured question consisted of four part:
1) Introduction
The researcher will first conduct introduction starting from his name, university
of origin, and the faculty completed by the researcher’s study concentration.
Here, the researcher will briefly explain the research and purpose of the
research. The researcher will also ask the respondents to answer the
questionnaire according to their own individual experience.
2) Screening Question
In order to filter the respondents, the researcher will set a screening questions
so that the respondents that will fill the questionnaire fits with the requirement
of respondent characteristics. The screening process will be conducted through
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a question on whether the respondents is among the age group of 18-34 years
old and whether the respondents uses Instagram accounts, followers on one of
the footwear brand on Instagram, owned a products from one of the brands and
live within the designated area of Java island.
3) Measurement question
On this part, the questionnaire will be divided into five sub-section where each
section will be covering each of the variables present on this research from
perceived personalization, self-expressive brand, consumer-brand engagement,
brand attachment, perceived quality, and brand loyalty. The questionnaire item
on this research will be using structured question with close-ended type of
question and are using 7-point Likert-scale with interval data scale for all the
measurement question except the question within the respondents profile
section that will be asking about the demographical data of the respondents. The
measurement scale of perceived personalization is adapted from (Srinivasan et
al., 2002), measurement scale of consumer brand engagement is adapted from
(Hollebeek et al., 2014), brand attachment from (Thompson et al., 2005)
perceived quality and Brand Loyalty from (Yoo & Donthu, 2001). The
additional variable as part of the updated conceptual model, namely self-
expressive brand will be adapting a measurement scale from (Carroll & Ahuvia,
2006). All measurement scale follows wording adjustments made within the
core reference of this research from Shanahan et al., (2019) to measure the role
of personalized advertisement (Instagram ads) in Instagram in which that the
respondents ever come across with (sees and interact with). In addition to that
self-expressive brand also follows the same adjustment in which the
respondents will refer towards the personalised advertisement particularly the
contents to measure the self-expressiveness in which reflected by the consumers
in Instagram (social media). All the measurement item uses 7-point Likert scale
in which the researcher uses scale (1) that represents strongly disagree up to the
scale of (7) that represents strongly agree responses.
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4) Respondent Profiles
On this part, the researcher will be asking the respondents regarding their brief
profile that includes gender, age, current or last education level, profession,
domicile, marital status, monthly spending, brands that they have purchased
(can be more than one brands if the respondents own products from the brands
selection), social media platform aside from Instagram that they use, and lastly
their average time spent on social media.
3.7 Sampling
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Within the pre-test, the researcher will also conduct reliability test
to measure how consistent the measurement scale used and to identify if the
measurement tools are reliable for data analysis. The reliability test will be
carried out by seeing whether the value of Cronbach’s Alpha is ≥ 0,6 where
the measurement scale can be valued as reliable (Malhotra, 2010).
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Hair et al., (2017) stated that within the SEM model analysis, there
are two types of models, namely the measurement model that models each
latent variable to be the basis for the formation of observable variables, as
well as the structural model that describes the relationship between the latent
variables to examine the relationship. Based on the guidelines of Hair et al.
(2017), researchers must follow the process of processing data using PLS-
SEM, that is, after making the model specifications, proceed with the
evaluation of outer model then the evaluation of inner model. Inner model
or structural model shows the relationship between the constructs that is
evaluated. Meanwhile, the outer model, also known as the measurement
model, is used to evaluate the relationship between indicator variables and
related constructs.
Furthermore, Hair et al., (2017) also imply that the result of data
analysis conducted using PLS-SEM should be evaluated through the series
of sequence in order acquire an accurate result from the data analysis, the
sequence need to be followed from evaluating the quality of measurement
model and the structural model of PLS-SEM by seeing the metric that
indicates the predictive ability of the model. Regarding the evaluation
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that is, with the condition that the construct shares more variance
with its own construct than with other constructs.
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CHAPTER 4
Regarding the questionnaire item used on this research, the item used are
adapted from various reference journal written in English in which then forward
translated by the researcher to Bahasa Indonesia. During the process of
questionnaire measurement development, the researcher translated the items by first
consulting the items to the original writer of the reference journal used within this
research. The consultation was done in order to ensure there is no misinterpretation
during the translation process especially for the constructs of Consumer Brand
Engagement and Brand Attachment in which the original author operationalize the
indicators to fit the context of advertisement personalization. After gaining
clarification on regards to the wording adjustment made to fit the context of
advertisement personalization, the original author operationalizes the words for
consumer brand engagement as consumer and brand interactions upon “seeing” the
personalised advertisement on social media and brand attachment also follow the
same adjustment. After the researcher complete the translation process, the
researcher then conducts wording test to 10 respondents by consulting directly
whether the item is understandable or not. Most of the input acquired from this
wording test stage is regarding the formation of the sentence and the selection of
representative word that is much more understandable in Bahasa Indonesia. Then,
the result of wording test is used by the researcher to fix and improve the structure
of the sentence that represent the item within the questionnaire.
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measurement items and variables by using IBM SPSS Statistics 23. The
questionnaire item is deemed to be reliable if the value of Cronbach’s Alpha ≥ 0,6
and is valid if the value of Kaiser-Meyer-Olkin (KMO) ≥ 0,5, Bartlett’s Test of
Sphericity ≤ 0,05, MSA ≥ 0,5, and factor loading within component matrix ≥ 0,5,
Therefore, the result of reliability and validity test is described below:
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Regarding the reliability test, all latent variables within this research can be
considered to have a good reliability. This is due to the result shown on table 4.1
where the output show all latent variable acquire a value of Cronbach’s Alpha
within the range of 0,673 up to 0,947 in which the value is above 0,6. However,
since there are validity issues discovered on one indicator of perceived
personalization latent variable (PP4), it can be said that all latent variable on this
research is reliable for the valid construct and indicators but still require a further
analysis on perceived personalization that will be discussed below.
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purchased brand, social media account they own, and the average time spent per
day on using social media. The total respondents gathered and are validated to be
analysed on this research are 386 respondents. Therefore, the frequency distribution
analysis are as follows.
4.2.1 Gender
4.2.2 Age
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4.2.5 Domicile
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From table 4.10 below, the researcher also asked questions regarding
what the brands respondents have purchased. Within the questions, the
respondents can give more than one answers if they have purchased any of
the brands from the selection. Based on the frequency distribution analysis,
there are two brands that is found to be the most purchased brands from the
four selection of brands. The frequency distribution analysis found that
Brodo Footwear and Geoff Max is the local footwear brand are the most
purchased and owned by respondents with 182 responses (47,20%) and 171
responses (44,30%) respectively from the total respondents. Then, followed
by NAH Project with 108 responses or 28,00% and Portee Goods with 76
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Within the questions regarding social media that the respondents use
aside from Instagram as one of the main requirements to fill the
questionnaire, respondents can answer to more than one social media that
the respondent uses. From table 4.14 below, it can be inferred that all the
respondents are validated in which they use Instagram as the main
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Lastly, upon the questions regarding the average time spent on social
media, the frequency distribution analysis as shown on table 4.14 shows that
138 respondents or 35,80% from the total respondents spent an average
range of 3 – 5 hours per day using social media. Then 103 respondents or
26,70% spent an average range of 1 – 3 hours per day. With the large
proportion of respondents that informed they spent their time using social
media from the range of 3-5 hour per day, this can indicate that the
respondents spend a lengthy time when using social media such as
Instagram which also makes them to more likely be exposed with the
brand’s personalised advertisement on Instagram. In addition to that, 82
respondents (21,20%) answers that they spent an average range of 5 – 7
hours a day using social media, while 17 respondents or 4,40% answers that
they use social media not longer than 1 hour on daily basis.
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Total
Variable/Dimension Item Min. Max. Standard Deviation Mean
Mean
PP1 1 7 0,99 5,75
PP2 1 7 1,02 5,68
PP 5,53
PP3 1 7 1,18 5,25
PP5 1 7 1,25 5,43
SEB1 1 7 1,50 4,48
SEB2 1 7 1,46 4,50
SEB SEB3 1 7 1,46 4,45 4,52
SEB4 1 7 1,53 4,29
SEB5 1 7 1,50 4,90
(Source: Researcher’s Output)
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perceive that the advertisement delivered by the brand are personalised for
them. Here it can also be seen that two out of four-indicator used, PP1 and
PP2 acquire a mean value of 5,75 and 5,68 respectively which means that
in average, respondents perceive that the ads help them to acquire a product
that is recommended and suited for them. The standard deviation value
however is mostly above one except for PP1 in which indicates that the
answer given regarding each indicator within perceived personalization
constructs are also relatively varied from each individual respondent and
based on the means from each indicator there are a tendency for respondents
to answer “agak setuju” across all items.
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Table 4.17 Internal Consistency Evaluation Result with Two Stage Approach
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Table 4.19 Convergent Validity and Discriminant Validity Result with Two-
Stage Approach
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Variable BA BL CBE PP PQ
BA
BL 0,778
CBE 0,916 0,679
PP 0,596 0,478 0,715
PQ 0,557 0,579 0,649 0,529
SEB 0,728 0,574 0,709 0,566 0,400
(Source: Researcher’s Smart-PLS Output)
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there is a predictive relevance within the model and toward the latent
endogenous variables.
As for the analysis of q2 effect sizes it is not shown within the output
calculation of Smart-PLS, therefore the researcher needs to calculate the
value manually. Similar with the relationship between f2 effect sizes with
the value of R2, q2 effect sizes is a measure to assess the relative predictive
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𝑄2 included − 𝑄2 excluded
𝑞2 =
1 − 𝑄2 included
For computing q2 effect sizes using above formula from a construct (e.g.
construct A) toward an endogenous reflective latent variable, the researcher
first has to acquire the value of Q2 through blindfolding method in Smart-
PLS by including construct X (𝑄2 included) and then also by removing
construct X to acquire the value of (𝑄2 excluded). The computation within
Smart-PLS blindfolding method should also use the same omission distance
D value. As the relative measure from Q2 predictive relevance, the value of
q2 effect sizes shows the strength of exogenous construct relevance to an
endogenous construct. Therefore, the table below shows the result of q2
effect size computation of each independent variable toward the dependent
variable.
Variable CBE BA PQ BL
PP 0,083 0,049 0,001 0,000
SEB 0,149 0,309 -0,004 0,000
CBE 0,048 0,000
BA 0,013 0,139
PQ 0,041
(Source: Researcher’s Smart-PLS Output)
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Sample
Path Coefficients Standard Deviation t-statistics
Mean
PP → CBE 0,340 0,342 0,048 7,109
PP → BA 0,228 0,230 0,047 4,935
SEB → CBE 0,450 0,450 0,051 8,831
SEB → BA 0,553 0,553 0,047 11,823
CBE → PQ 0,382 0,383 0,083 4,586
CBE → BL 0,016 0,018 0,062 0,249
BA → PQ 0,200 0,201 0,083 2,409
BA → BL 0,554 0,553 0,057 9,713
PQ → BL 0,221 0,221 0,051 4,310
(Source: Researcher’s Smart-PLS Output)
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t-
Hypotheses Research Reference Journal
Hypotheses statistics
Statement Result Result
value
Perceived
personalizati 7,109
on
Hypothesis
positively Hypothesis supported
H1 supported by
influences by data
data
consumer
brand
engagement
Perceived
personalizati
on Hypothesis
Hypothesis supported
H2 positively 4,935 supported by
by data
influences data
brand
attachment
Self-
expressive
brand
Hypothesis
positively Hypothesis supported
H3 8,831 supported by
influences by data
data
consumer
brand
engagement
Self-
expressive
brand Hypothesis
Hypothesis supported
H4 positively 11,823 supported by
by data
influences data
brand
attachment
Consumer
brand
engagement Hypothesis
Hypothesis supported
H5 positively 4,586 supported by
by data
influence data
perceived
quality
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the advertisement on social media can be used to highlight certain features that
match the preferences of consumers especially those who have prior affinity toward
the brands to grow emotionally along with the brand.
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The research by Shanahan et al. (2019) also highlight that consumer brand
engagement on social media (Facebook) allows consumers to voice their perceived
quality of a product or service from a brand. In line with the result of hypotheses
H5, and findings by Shanahan et al. (2019) the nature of Instagram as social media
platform studied on this research comply with the result in which that the brand’s
personalised advertisement on Instagram can stimulate and also acts as medium for
engagement activities. The personalised advertisement can provide a way where
consumers can learn more (cognitive processing and activation) about the brand,
interact with the brand through commenting, liking (affection), or sharing the
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CONCLUSION
5.1 Conclusion
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Based on the result that are summarized on above paragraph, it can also be inferred
that the purpose of this research, which are to gain insights on the relationship
between perceived quality; self-expressive brand toward consumer brand
engagement; brand attachment, consumer brand engagement; brand attachment
toward perceived quality; brand loyalty and lastly perceived quality toward brand
loyalty of local footwear brand that advertise on Instagram has been achieved.
Therefore, the discussion regarding managerial implications for business
practitioners, recommendation for future research and the research limitations will
be discussed on several following sections.
Referring to the result of this research, the findings as described within the
previous chapters can be used as insights by managements of local footwear brand
within the footwear industries as reference to formulate a relevant strategy and
decisions. Brands within the local footwear industries that are using Instagram as
one of their digital marketing channels to advertise their product could refer to this
research findings to consider several of the findings in consumer behaviour in
regard to their advertisement that can be carried in personalised scheme on
Instagram. Therefore, several of managerial implication that can answer both
business and marketing problem of this research is as follows:
1) The result of this research shows that the utilization of personalised ads
scheme on Instagram to deliver advertisement is important to stimulate
consumer’s engagement toward the brand and positive emotional
attachment toward the brand which can lead to a positive perception of
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quality for the brands. In addition to that, emotionally led attachment toward
the brand also significantly impact the consumer’s loyalty toward the brand.
2) Continuing above point, This research found that perceived personalization
have a significant direct influence toward the consumer’s behavioural,
emotional, and cognitive states which makes them wanting to interact with
the brand as they come across the local footwear brand’s personalised
advertisement on Instagram and also foster their emotional attachment as
the personalised advertisement kept the brand “close” within the consumer’s
self and mind. In detail, based on the descriptive analysis it is found that
indicators from perceived personalization construct, PP1 produce the
highest mean in which that the consumer perceive the advertisement from
the local brand on Instagram is able to give them a purchase
recommendation that is best suited according to their individual preference.
Furthermore, when looking toward the outer loading result on chapter four
on perceived personalization indicators, the finding shows that PP2 and PP5
produce the highest score. Based on these findings, from the consumer’s
perspective, local footwear brand that advertise on Instagram might want to
also accommodate customized selection of products by enabling the
consumers to pre-order the products to their liking in which the promotion
and offerings can also be incorporated in Instagram ads by implementing
redirect button in the advertisement toward the website customization page
which are commonly found in foreign brands website, and can be adopted
by local brands. Furthermore, footwear brands can take advantages of
Instagram advertisement targeting options, specifically the custom audience
feature This way, local footwear brand can choose audience based on their
look alike characteristics or lookalike audience. Look alike audience is
advanced feature in Instagram ads in which allows brands further target the
advertisement audience to people that already have prior affinity toward the
brand such as similar people from their follower base and data.
3) The result of this research also finds that self-expressive brand in the context
of personalised advertisement on Instagram plays an important role for a
brand to stimulate their consumer engagement and on fostering the
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material used which resonates with consumer preference and sets the brand
apart from alternatives which signals uniqueness and competitive advantage
compared to other brands and particularly foreign brands.
Regarding the limitation of this research, upon the planning and execution
of this research there are several limitations that the researcher come across. Several
of those limitations are as follows:
1. Respondents within this research are still dominated with several group
from the populations, especially gender and age where it will cause
challenges on generalizing the results when compared to a more evenly
distributed sample group. Even so, referring to the result of this research on
chapter four, this research captures the real phenomenon regarding the
consumer base on four of the brands that targeted certain group within the
market.
2. Second, there are limitations on theory for the variable used on this research
namely perceived personalization that focuses on the context of
personalised advertisement on social media and theory that highlight the
effect of personalization perception toward consumer brand engagement
and brand attachments. The researcher finds difficulties to acquire theories
that highlight the relationship between these variables considering the
investigated phenomenon of social media personalization are still limited in
number of previous researches that investigate the relationship between the
variables.
3. Due to the nature of Instagram that is an image sharing social networking
site that allows the creation of advertisement with similar format of organic
posts such as feed post, stories, carousel, and IGTV, there are possibilities
that respondents refer to Instagram organic posts like photo or video on
answering the questionnaire instead of the real advertisement with a
“sponsored” tag within the contents. Even so, the researcher already tried to
minimize the misinterpretation for the respondents by first providing
definitions of Instagram advertisement within the questionnaire.
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4. Since this research uses cross-sectional data for analysis that are collected
within a specific period, the result of this research should also be treated
carefully in terms of generalization. Especially regarding the current
situation of global pandemic due to Covid-19 most of the respondents
seemingly spent longer using their gadgets and social media due to the
“physical distancing policy” in which the researcher think may influence
the result of this research.
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Attachment 1 Research Questionnaire
Kuesioner Penelitian
Responden Yth.
PEMBUKAAN
MENGENAL IKLAN YANG DIPERSONALISASI
Personalization merupakan cara penyiaran iklan suatu merek produk atau jasa yang
telah disesuaikan kepada aktivitas seseorang di Internet (Shanahan et al., 2019).
Pada platform Instagram, terdapat fitur Instagram ads yang digunakan merek untuk
menyiarkan iklannya dalam bentuk Instagram story atau post yang bisa muncul dan
dapat dilihat oleh user Instagram yang memiliki kriteria sesuai dengan target
audience merek tersebut(seperti: status following Anda ke suatu merek, minat Anda
terhadap jenis produk tertentu, search query (kata pencarian) Anda di Instagram,
dan juga merek yang teman-teman Anda ikuti di Instagram (Hootsuite., 2020).
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BAGIAN I
SCREENING QUESTION
Berilah tanda silang (x) untuk jawaban yang sesuai dengan Anda
1. Apakah Anda memiliki produk dari merek sepatu lokal berikut ini? (boleh
lebih dari 1 merek)
a. Brodo
b. Portee Goods
c. Geoff Max
d. NAH Project
e. Tidak ada (Terima kasih atas partisipasinya, Anda tidak perlu
melanjutkan mengisi kuesioner ini)
2. Dari merek sepatu tersebut (no.1), sebutkan merek yang paling terakhir
Anda beli
a. Brodo
b. Portee Goods
c. Geoff Max
d. NAH Project
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4. Apakah Anda mengikuti akun Instagram merek yang Anda sebutkan pada
pertanyaan (No.2)?
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BAGIAN II
PERTANYAAN UTAMA
Item Pertanyaan 1 2 3 4 5 6 7
Perceived Personalization
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Item Pertanyaan 1 2 3 4 5 6 7
Self-Expressive Brand
Cognitive Processing
Affection
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Item Pertanyaan 1 2 3 4 5 6 7
Activation
Brand Attachment
Affection
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Connection
Passion
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Item Pertanyaan 1 2 3 4 5 6 7
Perceived Quality
Brand Loyalty
BAGIAN III
DATA RESPONDEN
Berilah tanda silang (x) untuk jawaban yang sesuai dengan Anda
1. Jenis Kelamin
a. Pria
b. Wanita
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2. Status:
a. Tidak menikah
b. Menikah
c. Pernah menikah
5. Pekerjaan
a. Pelajar/Mahasiswa
b. Pengusaha
c. Pegawai Negeri
d. Pegawai Swasta/Pegawai BUMN
e. Lainnya (........)
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9. Akun sosial media yang Anda miliki (boleh pilih lebih dari 1)
a. Instagram
b. Facebook
c. Twitter
d. Linkedin
e. Messenger App: WhatsApp/Line/WeChat
10. Waktu rata-rata per hari Anda dalam menggunakan social media
a. Kurang dari 1 jam
b. 1 – 3 jam
c. 3 – 5 jam
d. 5 – 7 jam
e. Lebih dari 7 jam
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Attachment 2 SMART-PLS Result
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Base Data
Setting
Data file Settings
Data file MAIN TEST ADHI WITH LVS [386 records]
Missing value marker none
Data Setup Settings
Algorithm to handle missing data None
Weighting Vector -
PLS Algorithm Settings
Data metric Mean 0, Var 1
Initial Weights 1.0
Max. number of iterations 300
Stop criterion 7
Use Lohmoeller settings? No
Weighting scheme Path
Bootstrapping Settings
Complexity Complete Bootstrapping
Bias-Corrected and Accelerated (BCa)
Confidence interval method
Bootstrap
Parallel processing Yes
Samples 5000
Significance level 0.05
Test type One Tailed
Construct Outer Weighting Mode
Settings
BA Automatic
BL Automatic
CBE Automatic
PP Automatic
PQ Automatic
SEB Automatic
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Attachment 3 IBM SPSS 23 PRE-TEST RESULT
RELIABILITY
/VARIABLES= ALL VARIABLES
/SCALE('ALL VARIABLES') ALL
/MODEL=ALPHA
/STATISTICS=DESCRIPTIVE SCALE
/SUMMARY=TOTAL.
Reliability Statistics
Cronbach's Alpha N of Items
.673 5
Item-Total Statistics
Scale Mean if Scale Variance if Corrected Item-Total Cronbach's Alpha if
Item Deleted Item Deleted Correlation Item Deleted
PP1 23.167 8.420 .349 .653
PP2 23.300 7.666 .554 .580
PP3 23.333 6.782 .484 .594
PP4 23.533 7.430 .262 .721
PP5 23.067 7.030 .588 .552
RELIABILITY
/VARIABLES=SEB1 SEB2 SEB3 SEB4 SEB5
Reliability Statistics
Cronbach's Alpha N of Items
.916 5
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Item-Total Statistics
Cronbach's
Scale Mean if Scale Variance if Corrected Item- Alpha if Item
Item Deleted Item Deleted Total Correlation Deleted
SEB1 20.400 22.593 .851 .883
SEB2 20.500 24.121 .740 .907
SEB3 20.467 23.292 .844 .886
SEB4 20.700 23.597 .761 .903
SEB5 19.933 25.306 .736 .907
RELIABILITY
/VARIABLES=ECP1 ECP2 ECP3
.
Reliability Statistics
Cronbach's Alpha N of Items
.831 3
Item-Total Statistics
Scale Mean if Scale Variance if Corrected Item-Total Cronbach's Alpha if
Item Deleted Item Deleted Correlation Item Deleted
ECP1 11.967 3.551 .714 .746
ECP2 12.033 2.723 .796 .662
ECP3 11.867 4.189 .599 .853
RELIABILITY
/VARIABLES=EAF1 EAF2 EAF3 EAF4
Reliability Statistics
Cronbach's Alpha N of Items
.852 4
Item-Total Statistics
Scale Mean if Scale Variance if Corrected Item-Total Cronbach's Alpha if
Item Deleted Item Deleted Correlation Item Deleted
EAF1 16.033 8.102 .715 .805
EAF2 16.067 7.030 .850 .742
EAF3 16.067 8.064 .690 .814
EAF4 16.333 8.023 .549 .880
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RELIABILITY
/VARIABLES=EAC1 EAC2 EAC3
.
Reliability Statistics
Cronbach's Alpha N of Items
.797 3
Item-Total Statistics
Scale Mean if Scale Variance if Corrected Item-Total Cronbach's Alpha if
Item Deleted Item Deleted Correlation Item Deleted
EAC1. 10.733 5.375 .528 .875
EAC2 10.400 5.834 .646 .719
EAC3 10.267 5.720 .799 .586
RELIABILITY
/VARIABLES=AAF1 AAF2 AAF3 AAF4
Reliability Statistics
Cronbach's Alpha N of Items
.895 4
Item-Total Statistics
Scale Mean if Scale Variance if Corrected Item-Total Cronbach's Alpha if
Item Deleted Item Deleted Correlation Item Deleted
AAF1 15.500 11.224 .777 .862
AAF2 14.767 13.220 .647 .907
AAF3 15.400 10.662 .849 .834
AAF4 15.633 10.930 .810 .849
RELIABILITY
/VARIABLES=ACC1 ACC2 ACC3
Reliability Statistics
Cronbach's Alpha N of Items
.941 3
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Item-Total Statistics
Cronbach's
Scale Mean if Scale Variance if Corrected Item- Alpha if Item
Item Deleted Item Deleted Total Correlation Deleted
ACC1 9.967 9.068 .871 .919
ACC2 9.800 8.924 .865 .923
ACC3 10.033 8.171 .898 .898
RELIABILITY
/VARIABLES=APS1 APS2 APS3
Reliability Statistics
Cronbach's Alpha N of Items
.947 3
Item-Total Statistics
Cronbach's
Scale Mean if Scale Variance if Corrected Item- Alpha if Item
Item Deleted Item Deleted Total Correlation Deleted
APS1
11.033 6.654 .879 .934
RELIABILITY
/VARIABLES=PQ1 PQ2 PQ3 PQ4 PQ5
Reliability Statistics
Cronbach's Alpha N of Items
.920 5
Item-Total Statistics
Scale Mean if Scale Variance if Corrected Item-Total Cronbach's Alpha if
Item Deleted Item Deleted Correlation Item Deleted
PQ1 23.367 12.516 .843 .891
PQ2 23.600 14.110 .604 .937
PQ3 23.533 13.361 .818 .898
PQ4 23.533 12.051 .889 .881
PQ5 23.300 12.424 .823 .895
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RELIABILITY
/VARIABLES=BL1 BL2 BL3
Reliability Statistics
Cronbach's Alpha N of Items
.897 3
Item-Total Statistics
Scale Mean if Scale Variance if Corrected Item-Total Cronbach's Alpha if
Item Deleted Item Deleted Correlation Item Deleted
BL1 10.467 10.257 .803 .847
BL2 10.000 10.690 .768 .877
BL3 10.467 9.775 .820 .833
FACTOR
/ALL VARIABLES
/MISSING LISTWISE
/ANALYSIS PP1 PP2 PP3 PP4 PP5
/PRINT INITIAL KMO AIC EXTRACTION
/CRITERIA FACTORS(1) ITERATE(25)
/EXTRACTION PC
/ROTATION NOROTATE
/SAVE REG(ALL)
/METHOD=CORRELATION.
FACTOR
/VARIABLES PP1 PP2 PP3 PP4 PP5
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Anti-image Matrices
PP1 PP2 PP3 PP4 PP5
Anti-image Covariance PP1 .420 -.183 -.274 .240 -.092
PP2 -.183 .514 .001 -.013 -.213
PP3 -.274 .001 .576 -.247 .084
PP4 .240 -.013 -.247 .510 -.259
PP5 -.092 -.213 .084 -.259 .494
Anti-image Correlation PP1 .465a -.394 -.557 .518 -.201
PP2 -.394 .691a .002 -.025 -.424
PP3 -.557 .002 .483a -.456 .157
PP4 .518 -.025 -.456 .335a -.517
PP5 -.201 -.424 .157 -.517 .574a
a. Measures of Sampling Adequacy(MSA)
Communalities
Initial Extraction
PP1 1.000 .474
PP2 1.000 .664
PP3 1.000 .469
PP4 1.000 .165
PP5 1.000 .569
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Component Matrixa
Component
1
PP1 .688
PP2 .815
PP3 .685
PP4 .406
PP5 .754
FACTOR
/VARIABLES PP1 PP2 PP3 PP5
KMO and Bartlett's Test
Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .631
Bartlett's Test of Sphericity Approx. Chi-Square 28.450
df 6
Sig. .000
Anti-image Matrices
PP1 PP2 PP3 PP5
Anti-image Covariance PP1 .574 -.242 -.272 .056
PP2 -.242 .514 -.007 -.300
PP3 -.272 -.007 .727 -.072
PP5 .056 -.300 -.072 .674
Anti-image Correlation PP1 .623a -.446 -.421 .091
PP2 -.446 .613a -.011 -.510
PP3 -.421 -.011 .696a -.103
PP5 .091 -.510 -.103 .617a
a. Measures of Sampling Adequacy(MSA)
Communalities
Initial Extraction
PP1 1.000 .628
PP2 1.000 .698
PP3 1.000 .461
PP5 1.000 .464
Extraction Method: Principal Component Analysis.
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Component Matrixa
Component
1
PP1 .792
PP2 .835
PP3 .679
PP5 .681
RELIABILITY
/VARIABLES=PP1 PP2 PP3 PP5
/SCALE('ALL VARIABLES') ALL
/MODEL=ALPHA
/STATISTICS=DESCRIPTIVE SCALE
/SUMMARY=TOTAL.
Case Processing Summary
N %
Cases Valid 30 100.0
Excludeda 0 .0
Total 30 100.0
a. Listwise deletion based on all variables in the
procedure.
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Reliability Statistics
Cronbach's Alpha N of Items
.721 4
Item-Total Statistics
Scale Mean if Scale Variance if Corrected Item- Cronbach's Alpha
Item Deleted Item Deleted Total Correlation if Item Deleted
PP1 17.600 4.662 .583 .622
PP2 17.733 4.616 .626 .601
PP3 17.767 4.185 .448 .714
PP5 17.500 4.810 .432 .704
FACTOR
/VARIABLES SEB1 SEB2 SEB3 SEB4 SEB5
KMO and Bartlett's Test
Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .880
Bartlett's Test of Sphericity Approx. Chi-Square 94.346
df 10
Sig. .000
Anti-image Matrices
SEB1 SEB2 SEB3 SEB4 SEB5
Anti-image Covariance SEB1 .265 -.146 -.076 -.088 -.060
SEB2 -.146 .399 -.070 .001 -.011
SEB3 -.076 -.070 .286 -.102 -.111
SEB4 -.088 .001 -.102 .398 -.071
SEB5 -.060 -.011 -.111 -.071 .439
a
Anti-image Correlation SEB1 .849 -.451 -.277 -.270 -.175
SEB2 -.451 .875a -.207 .002 -.026
a
SEB3 -.277 -.207 .872 -.304 -.315
SEB4 -.270 .002 -.304 .903a -.171
SEB5 -.175 -.026 -.315 -.171 .915a
a. Measures of Sampling Adequacy(MSA)
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Communalities
Initial Extraction
SEB1 1.000 .829
SEB2 1.000 .693
SEB3 1.000 .821
SEB4 1.000 .721
SEB5 1.000 .688
.
Component Matrixa
Component
1
SEB1 .911
SEB2 .833
SEB3 .906
SEB4 .849
SEB5 .830
FACTOR
/VARIABLES ECP1 ECP2 ECP3
KMO and Bartlett's Test
Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .661
Bartlett's Test of Sphericity Approx. Chi-Square 35.935
df 3
Sig. .000
Anti-image Matrices
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Communalities
Initial Extraction
ECP1 1.000 .763
ECP2 1.000 .848
ECP3 1.000 .641
Extraction Method: Principal Component Analysis.
Component Matrixa
Component
1
ECP1 .873
ECP2 .921
ECP3 .800
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FACTOR
/VARIABLES EAF1 EAF2 EAF3 EAF4
KMO and Bartlett's Test
Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .747
Bartlett's Test of Sphericity Approx. Chi-Square 58.953
df 6
Sig. .000
Anti-image Matrices
EAF1 EAF2 EAF3 EAF4
Anti-image Covariance EAF1 .440 -.153 -.008 -.081
EAF2 -.153 .234 -.190 -.120
EAF3 -.008 -.190 .371 .040
EAF4 -.081 -.120 .040 .661
Anti-image Correlation EAF1 .821a -.478 -.019 -.149
a
EAF2 -.478 .670 -.645 -.306
EAF3 -.019 -.645 .730a .081
EAF4 -.149 -.306 .081 .857a
a. Measures of Sampling Adequacy(MSA)
Communalities
Initial Extraction
EAF1 1.000 .724
EAF2 1.000 .875
EAF3 1.000 .711
EAF4 1.000 .510
Extraction Method: Principal Component Analysis.
Universitas Indonesia
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Component Matrixa
Component
1
EAF1 .851
EAF2 .935
EAF3 .843
EAF4 .714
FACTOR
/VARIABLES EAC1 EAC2 EAC3
Anti-image Matrices
EAC1 EAC2 EAC3
Anti-image Covariance EAC1 .656 .036 -.203
EAC2 .036 .387 -.252
EAC3 -.203 -.252 .310
a
Anti-image Correlation EAC1 .714 .071 -.451
EAC2 .071 .596a -.728
EAC3 -.451 -.728 .565a
a. Measures of Sampling Adequacy(MSA)
Communalities
Initial Extraction
EAC1 1.000 .574
EAC2 1.000 .759
EAC3 1.000 .871
Extraction Method: Principal Component Analysis.
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Component Matrixa
Component
1
EAC1 .757
EAC2 .871
EAC3 .933
FACTOR
/VARIABLES AAF1 AAF2 AAF3 AAF4
Anti-image Matrices
AAF1 AAF2 AAF3 AAF4
Anti-image Covariance AAF1 .363 -.024 -.140 -.097
AAF2 -.024 .570 -.103 -.084
AAF3 -.140 -.103 .271 -.133
AAF4 -.097 -.084 -.133 .330
a
Anti-image Correlation AAF1 .836 -.053 -.445 -.280
AAF2 -.053 .907a -.262 -.193
AAF3 -.445 -.262 .778a -.444
AAF4 -.280 -.193 -.444 .829a
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Communalities
Initial Extraction
AAF1 1.000 .771
AAF2 1.000 .615
AAF3 1.000 .851
AAF4 1.000 .809
Component Matrixa
Component
1
AAF1 .878
AAF2 .784
AAF3 .922
AAF4 .899
FACTOR
/VARIABLES ACC1 ACC2 ACC3
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Anti-image Matrices
ACC1 ACC2 ACC3
Anti-image Covariance ACC1 .235 -.075 -.117
ACC2 -.075 .249 -.111
ACC3 -.117 -.111 .193
Anti-image Correlation ACC1 .780a -.309 -.548
a
ACC2 -.309 .797 -.508
ACC3 -.548 -.508 .724a
Communalities
Initial Extraction
ACC1 1.000 .889
ACC2 1.000 .882
ACC3 1.000 .914
Component Matrixa
Component
1
ACC1 .943
ACC2 .939
ACC3 .956
FACTOR
/VARIABLES APS1 APS2 APS3
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Anti-image Matrices
APS1 APS2 APS3
Anti-image Covariance APS1 .216 -.101 -.040
APS2 -.101 .142 -.103
APS3 -.040 -.103 .205
Anti-image Correlation APS1 .799a -.574 -.191
a
APS2 -.574 .692 -.604
APS3 -.191 -.604 .785a
Communalities
Initial Extraction
APS1 1.000 .893
APS2 1.000 .937
APS3 1.000 .898
Component Matrixa
Component
1
APS1 .945
APS2 .968
APS3 .947
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FACTOR
/VARIABLES PQ1 PQ2 PQ3 PQ4 PQ5
Anti-image Matrices
PQ1 PQ2 PQ3 PQ4 PQ5
Anti-image Covariance PQ1 .282 -.132 -.064 -.018 -.099
PQ2 -.132 .543 .045 -.111 .061
PQ3 -.064 .045 .264 -.106 -.042
PQ4 -.018 -.111 -.106 .186 -.091
PQ5 -.099 .061 -.042 -.091 .250
Anti-image Correlation PQ1 .873a -.338 -.233 -.079 -.374
PQ2 -.338 .817a .118 -.350 .166
PQ3 -.233 .118 .866a -.480 -.162
PQ4 -.079 -.350 -.480 .815a -.424
PQ5 -.374 .166 -.162 -.424 .851a
Communalities
Initial Extraction
PQ1 1.000 .818
PQ2 1.000 .513
PQ3 1.000 .797
PQ4 1.000 .878
PQ5 1.000 .806
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Component Matrixa
Component
1
PQ1 .905
PQ2 .716
PQ3 .893
PQ4 .937
PQ5 .898
FACTOR
/VARIABLES BL1 BL2 BL3
Anti-image Matrices
BL1 BL2 BL3
Anti-image Covariance BL1 .347 -.123 -.182
BL2 -.123 .410 -.148
BL3 -.182 -.148 .324
Anti-image Correlation BL1 .737a -.327 -.542
BL2 -.327 .794a -.407
BL3 -.542 -.407 .715a
a. Measures of Sampling Adequacy(MSA)
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Communalities
Initial Extraction
BL1 1.000 .836
BL2 1.000 .800
BL3 1.000 .852
Extraction Method: Principal Component Analysis.
Component Matrixa
Component
1
BL1 .914
BL2 .895
BL3 .923
Universitas Indonesia