CHAPTER 1 INTRODUCTION - library.binus.ac.idlibrary.binus.ac.id/eColls/eThesisdoc/Bab1/chapter 1-mk-2016-0089.pdf · Indomaret’ Toothbrush at Indomaret’ convenience store), or

1

CHAPTER 1

INTRODUCTION

This chapter aims to provide background introduction about the research; including

the importance of doing this research subject. This chapter also discusses problem

identification and reason of choosing the problem. Furthermore, the author also

presents scope, aims and benefits, research questions and also structures that contain

general description to cover each chapter within this research.

1.1 Background

The research is based on a replication study from the original journal in 2011 by

Robert Jones, and Youn-Kyung Kim from the title “Single-brand retailers:

Building brand loyalty in the off-line environment”.

Retail industry has been fiercely competitive since major industries have evolved

in traditional business models such brick and mortar shops (Bailey, 2013). In the

1960s and 1970s, the retail industries such as Wal-mart and Kmart were

spreading out their discount chains and sooner, the big box of “category killer”

such Home Depot transformed the old-style mall into more trendy style as the

retailers needs to either adapt or bankrupt as many new stores coming out and

shrinking the profitable volume (Rigby, 2011). In 1990s, the retail industry grew

into online shopping or electronic commerce such as Amazon.com and Pets.com

but the slowing economy has washed out half of the e-commerce retailers (Rigby,

2011). However, today’s economic reality has been well established, so retail

2

industry is highly profitable for company. Then, it continues to grow rapidly and

always evolves by the current trend (Rigby, 2011).

Based on BPS (Indonesia Statistic Centre Bureau) in 2002, Indonesia’ retails

industry began in 1970 and then there was no significant development for about

10 years. Indonesia was becoming the biggest importer in Southeast Asia and

struggling with high inflation at that time. Retails in Indonesia just grew from

1983 due to the rapid economics and increasing of income per capita that year. At

the end of the 20th century, the modern retailers finally grew fast and eventually

harmed the traditional market, as the capital was not as much as the modern

retailers (Halim, 2015). The retail industry in Indonesia has been increasing YOY

(year by year) proven by the data below that shows huge increasing number from

2006-2008 with stable rate for the rest of the year.

Figure 1.1 Indonesia Retail Sales Year-by-Year

Source: Trading Economics, 2015

Within the growth realization of the retails industry, branding has become firm’s

most important intangible asset because it influences the customer’s perceptions

and enhances the store choices and loyalty (Ailawadi and Keller, 2004). The

scope of the retailing research matches with the industry itself, broad and diverse

3

(Runyan and Rudge, 2008). Furthermore, the retailers have been accelerated in

trend and developed two strategies, which are private label (Ailawadi, Pauwels, &

Steenkamp, 2008) and single-brand retailing. The literature discusses more about

private label than single brand retailing (Ailawadi & Harlam, 2004). Single brand

retailing with its distinctiveness factor by relying into one brand, highlights the

fulfillment of retailing literature, which interests the author to do this research.

At their very basic level, brand serves as the markers of the firm’s offering and it

also reflects the complete experience with customers (Keller and Lehmann,

2006). Specifically, researchers that are using the resource-based theory realize

the role of marketing source; such as branding and building relationship that

occurred to gain competitive advantage (Barney, 1991). Brands serve as physical

representation of the brand statement that is supplied into one category through

location, experience, and products. Brand’s company will have to differ its

product or retailers in their customer for the purpose of making the suitable

preference (Keller, 1993). Most retailers are providing varieties of manufacturers

brands, where the revenue is flowing (Aliwadi and Keller, 2004). Multi brand

retailers such Macy’s is developing their “own brands” by linking to the retail

brand products in an attempt to increase the profit (Aliwadi and Keller, 2004).

Moreover, in Indonesia, retailers have involved with private label strategies (e.g.,

Indomaret’ Toothbrush at Indomaret’ convenience store), or any exclusive co-

brand agreements with other local brands (e.g., Swarovski with Batik Parang

Kencana). Those strategies are expected to increase profit and reduce the

competition market in terms of increasing the competitive advantage.

Single brand retailers are stores of retailer’s “own brand” and extend the private

label strategy to sell their products that they keep in their own store and store

4

website. Single brand retailers are using distinctive strategy in the retail industry,

which use their own brand to synchronize with the store (Seshanna, 2015). The

examples of single brand retailers are Zara, Hoka Hoka Bento, CFC, Pizza Hut,

KFC, etc. A successful single branding strategy will effectively remove the price

and product contrasts inherent by multi brand offering. Hence, the success of the

single brand retailers is mostly based on customer’s loyalty to the brands

(Seshanna, 2015).

Single brand retailers that similar to any kind of retail brand; differ slightly from

the strategy of labeling established by the manufacturers (Ailawadi and Keller,

2004). Manufacturers deliberate actions by generating marketing message of the

packaging, advertising and styling only to the product itself. Thus, it will lead to

customer mental responses (perceptions, attitudes and beliefs) and the

manufacturers’ brand perceptions are established in the mind of customers (Keller

and Lehmann, 2006).

However, single brand retailers should not only just synchronize with the brand

message in the product itself but also, the “overall” of the brand, such as store

atmospherics to induce the even deeper brand messages. According to Berman

and Evans (1995), the store atmospherics include four categories; exterior of the

store, store layout, interior in general and decoration variables. Thus, Milliman

and Turley (2000) said that the fifth category, human variable, is needed to

complete the theory. The human variable may include employee characteristics,

outfit, and appearances so they can represent the quality of the brand itself by

conveying the brand message. Retailers are engaging the manufacturers to

generate the customer interest to the store, so the manufacturers operate as

“ingredient brands” for the brand. Moreover, manufacturers are in charge for the

5

initial marketing message and single brand retailers are in control for the “whole”

brand message (Ailawadi and Keller, 2004).

As to address the theory about brand identification (Keller and Lehmann, 2006)

and integration of brand community, element and social networking (Keller and

Lehmann, 2006), further research about brand community involvement is

conducted as it relates alongside with the above theories in order to fill the gaps

of the literature review. The purpose of the research is due to the success of

today’s single brand retailers. The author of this research focuses on studying the

brand identification, brand community involvement that will result in attitudinal

loyalty (Ailawadi and Keller, 2004; Ailawadi, Pauwels, & Steenkamp, 2008;

Keller and Lehmann, 2006).

Marketing in the virtual branding communities is literally different from the

marketing used the conventional media. In the virtual brand communities, the

customers can edit, share, and give critics about specific brands, which occur

beyond the control from the company and marketing (Akar and Topçu, 2011).

According to Colliander and Dahlen (2011), understanding the consumer

behaviors toward the virtual communities is very crucial for the company, since it

is expected that the marketing efforts through brand community will generate

more purchase intention. Marketing activities that are conducted towards the

virtual brand communities are also seen as less irritating than other marketing

promotion tools such as online advertisement. Thus, they also develop positive

brand attitude from the customers (Chi, 2011). Moreover, consumer participations

in brand communities are eventually leading to the attitudinal loyalty towards the

brand (Casaló, Flavián, and Guinalíu, 2010). Brand communities’ content are

fulfilled with interesting brand insights, contests and events, otherwise, if the

6

single-brand retailer does not have the existing brand communities,

accommodating the social media can facilitate the development of brand

communities. Moreover, brand community can be utilized through traditional

conventions such as loyalty cards, events, and contests. The sign of community-

related-behavior includes product review, event entries, blog entries and loyalty

card usage, become the indicator for community communication (Jones and Kim,

2011).

According to Internet World Statistics (2015), Indonesia, as the forth countries

that has the highest population in the world, will be the most attractive markets

for developing and engaging the community of branding (Barrio and Miguel,

2015).

Figure 1.2 World Highest Populations

Source: Internet World Statistics, 2015

Therefore, the Internet usage of Indonesia can be associated with the growth of

brand community in this digital era (Utami, 2014). This statistics in next page,

show the increasing number of Internet users in Indonesia from 2013-2018. The

first quarter of 2015, online penetration in Indonesia is at 28% out of the

population and the number keeps arising.

7

Figure 1.3 Internet Users in Indonesia

Source: Statista, 2015

According to the graph below, Indonesia also becomes one of the highest rates for

Internet users in the worldwide, which positioned at 7th highest Internet user in

the world. The number written below is in millions.

Figure 1.4 Highest Number of Internet User in the World

Source: Statista, 2014

8

Virtual brand community in Indonesia needs to use one of tools in online media

for gaining the consumer reviews; here is the figure for the top active social

platforms in Indonesia. Facebook and Twitter are becoming the top active social

platforms for networks in Indonesia.

Figure 1.5 Top Active Social Platforms in Indonesia

Source: Tech in Asia, 2015

For the purpose of this paper, the author conducted focus group within 7 people

for graduate and undergraduate international university students that follow the

brand community in Indonesia. The brands derived from the focus group

considered to be having frequent updates in their brand community activities.

Thus, people from focus group had ever conducted previous experience with the

brand or brand community selected. Hence, two of brands derived from focus

group (The Body Shop and Starbucks) do not match with the online environment

for this research purpose and should be eliminated to make clearer understanding

9

for the reader. Moreover, two fast food local brands are selected (Hoka Hoka

Bento and CFC) that can be compared to fast food foreign brands (Pizza Hut and

KFC) derived from the focus group.

Fast food industry in Indonesia has been proven to be increasing in market share

as well as the profit in years. The growth of fast food industry in Indonesia has

become the challenge for fast food companies to manage and engage their

relationship with their customers to gain competitive advantage. According to

Indonesia-investments (2013), Indonesia financial highlights for fast food

industry is increasing between 2008-2013:

Figure 1.6 Fast Food Indonesia’s Financial Highlights

Source: Fast Food Indonesia, 2013

Besides that, those brands are one of the selected winners in the Top Brand

Awards for Fast Food Restaurants subject.

10

Those four single brand retailers are:

1. Pizza Hut (Foreign Brand)

Pizza Hut is an American restaurant food chain that the main specialty is

pizza. It is becoming the subsidiary of Yum! Brands, Inc. for the largest

restaurant company in the United States. Pizza Hut opened its first franchise

in 1984 and became the first pizza retailer in Indonesia. Pizza Hut was

opening store in Indonesia by the sole mediator from PT Sari Melati

Kencana.

Pizza Hut as the Fast Food Restaurant also becomes the first winner from

Top Brand Awards in 2015:

Figure 1.7 Top Brands for Fast Food in Indonesia

Source: Majalah Marketing, 2015

Pizza Hut Restaurant has brand communities in Indonesia that use Facebook

and Twitter as the medium to gain the customer’s loyalty.

11

Figure 1.8 Pizza Hut’s Facebook Brand Community in Indonesia

Source: facebook.com, 2015

As the account has been made since 2010 and it has more than 1.5 million

people liked the account until 2015. Most of them are also satisfied with the

product/service that can be perceived in the rank of 4 out of 5 stars. It can

also be seen from the account that the content is up to date with many

positive comments.

Figure 1.9 Pizza Hut’s Twitter Brand Community in Indonesia

Source: twitter.com, 2015

12

The account has been made since January 2012 and it also has 47.500

followers until 2015. It can be seen that the account is updating every

day with new information and positive reviews.

Those accounts (Facebook and Twitter) give information about new product

of food/beverages, new restaurant, newly events, new discounted events,

general information about pizza, etc.

The accounts include the consumer’s behavior that indicates the community-

related-behavior, such as:

• Reviewing products about the pizza taste

• Commenting on new information about the discounted events such

“buy 2 omelets platter and get one peach tea” or information about

new restaurants such “New Pizza Hut restaurant in Mojokerto”

• Criticizing about the service in one of the outlets of Pizza Hut

• Commenting on Hoax account of Pizza Hut delivery website

• Asking questions about the student cards discount for 20% in each

outlets

• Posting of the product after satisfied with the on-time delivery for less

than 30 minutes

• Following the unique picture contest for “#SarapanPagiPH” by using

Flickr and got the free Delight Rice Omelet

2. Hoka Hoka Bento (Local Brand)

Hoka Hoka Bento was founded in 1985 in Indonesia and already spread

through Java and Bali. Hoka Hoka Bento considered as one of the biggest

Japanese Fast Food Restaurant in Indonesia under PT. Eka Bogainti. Now,

13

Hoka Hoka Bento already conceived for more than 140 restaurant chains in

Indonesia region.

Hoka Hoka Bento becomes one of the selected brands for Top Brand Awards

in 2015.



Hoka Hoka Bento also has brand community in Indonesia that uses Facebook

and Twitter as the medium of communication.

Figure 1.11 Hoka Hoka Bento’s Facebook Brand Community in Indonesia


14

Hoka Hoka Bento’s Facebook has been made since March 13th, 2009 and it

has 126,904 who liked the account until 2015. As it can also bee seen that the

account is actively up to date and mostly the customers comment about

positive reviewing and product questioning.

Figure 1.12 Hoka Hoka Bento’s Twitter Brand Community in Indonesia


Hoka Hoka Bento’s Twitter in Indonesia has 48.400 followers with 64

favorites among the tweets until 2015. Hoka Hoka Bento created the Twitter

account in October 2009 with up to date contents. The tweets consist mostly

of positive reviews from the loyal customers.

Those accounts (Facebook and Twitter) give information about new product

in the menu, information about new outlets, new events, gifts voucher, etc.

The accounts also give consumer behavior signs of community related

behavior, such as:

• Commenting on the information about Japanese tradition

• Asking about the voucher gifts for special events

• Posting new menu for special edition

• Following the events Hoka Hoka Bento in Swaraagama FM

15

3. CFC (Local Brand)

CFC is an Indonesia Fast Food Restaurant Chain that was founded in 1983.

CFC is established by PT Pioneered Gourmet International Tbk, which listed

in Jakarta Stock Exchange in 1994. CFC took advantage of the growth

westernized fast food chain in malls and already spread through Indonesia

region.

CFC also becomes one of the selected winners of Top Brands awards in

2015:



CFC also has the brand community in Facebook and Twitter as its medium

to reach the customer loyalty.

16

Figure 1.14 CFC’s Facebook Brand Community in Indonesia


CFC Indonesia firstly joined Facebook in 2009 and it has more than 1 million

users that have liked the page until 2015. The account can be seen as actively

up to date and mostly the customers are leaving positive comments.

Figure 1.15 CFC’s Twitter Brand Community in Indonesia


17

CFC has joined Twitter since July 2012 and it has more than 1 thousand

followers until 2015. It can also be seen that it always updates the content

several times a day and mostly people are asking about the new

promo/products or leaving positive reviews.

The accounts (Facebook and Twitter) give information about the new

products, new events, new outlets, general information about the menu,

employee hiring schedule, etc.

The accounts contain some of consumer’s behaviors for community-related-

behaviors, such as:

• Creating and posting a video of how much they love going to specific

outlets of CFC

• Posting pictures of one of the products from CFC

• Joining the “Gebyar CFC Contest”

• Asking about the new discounted events such as: “Get 10% discount

for special Ramadhan Day”

• Posting of reviews and information about the new outlets in Salatiga

4. KFC (Foreign Brand)

KFC (Kentucky Fried Chicken) is an America fast food restaurant and the

main specialty is fried chicken. The company is one of the subsidiaries from

Yum! Brands. Salim Group and the master franchisee of PT Fastfood

Indonesia firstly opened KFC in 1976.

KFC also becomes one of the selected winners of Top Brands Awards for the

Fast Food Restaurant category in 2015:

18



KFC also has the brand community by Facebook and Twitter as the medium

to reach the customer loyalty in Indonesia.

Figure 1.17 KFC’s Facebook Brand Community in Indonesia


KFC joined Facebook in 2009 and they have more than 38 millions people

liked the account until 2015. It can also be seen that the account is actively

up date about their content and also most of the customers are leaving

positive reviews for the product/service.

19

Figure 1.18 KFC’s Twitter Brand Community in Indonesia


KFC has joined Twitter since March 2010 and they have 19.800 followers

with 19 favorites until 2015. Therefore, the account is also actively up to date

with new products, events, etc. People are also leaving positive comments

and reviews about the product/service.

The accounts (Facebook and Twitter) link to the activities such as new

product information, new events, new restaurant, new contests, etc.

The account adds up the sign of consumer behaviors that show the

community related behavior, such as:

• Following the contest of math quiz such “111 = 13, 112 = 24, 113 =

35, and what are 117 =…?”

• Commenting on the promo of pay for only 70% on chicken buckets

every Tuesday

• Posting reviews and information of the events of “Vocal Group

Festival” at KFC Margonda

20

• Posting the pictures of products by the satisfied customers

• Posting of information about “Nonton Bareng Liga Spanyol” in KFC

Kemang and getting door prize for 3.5 millions Rupiah

Furthermore, another research by W&S Market Research Indonesia on March 2015,

the result of brands that are considered to be in top of mind awareness, expansive,

recently used, last purchased, and future intention, are as below:

Figure 1.19 Popular Brand Index

Source: W&S Research Indonesia, 2015

Hence, KFC and Pizza Hut are considered to be the best popular brand index for fast

food foreign brands and Hoka Hoka Bento and CFC are also considered to be the

best popular brand index than other fast food local brands.

1.1.1 Exploratory study

An exploratory study was conducted by doing focus group in order to

perceive the single brand retailer’s preference derived from 7 under graduate

and graduate international university students. University students were

chosen to represent the single brand retailers because the young people

21

around 20-25 years old reflect the majority of Internet user in Indonesia,

especially in brand community. Moreover, student samples have been

regarded as reliable and valid for sample source specifically when the

research is appropriate to the student range population (Calder, Phillips, &

Tybout, 1981).

Based on Sage Publication (2015), the most ideal and suitable size of focus

group for research study is five to eight participants, hence if more people

included in the focus group it will be difficult to control by the moderator and

also limit each person’s chance to share their insights. Overall, international

students are regarded to be more engaged in educational purpose activities

such as research project and give deeper insight on wider perspective

especially in international context such as foreign branding (Alexander and

Pallas, 1985).

The result for the survey is on the next page:

Figure 1.20 Single brand retailers preference

Source: Exploratory Research

The brands selected, derived from the focus group are as follow: Pizza Hut,

Starbucks, The Body Shop and KFC. The questions related to the result are

Starbucks28.6%

KFC28.6%TheBodyShop14.3%

PizzaHut28.6%

SingleBrandRetailersPreference

22

referring to Appendix 1. Therefore, this research focuses mainly on Fast

Food Restaurant so only Pizza Hut and KFC that were chosen as

representatives of foreign fast food brands.

Therefore, it can be concluded from the focus group that the brand must have

positive image in the consumer’s mind so they will be more likely to conduct

deeper experience towards the brand. Moreover, consumers are also more

likely to spread the positive word of mouth and recommendation for positive

brand’s image.

In the scope of online brand community, it is actually best factors to always

update about the brand-related information as well as actively encourage the

users to do positive word of mouth and recommendation to gain the

attitudinal loyalty. The wordings used for answering the customer’s question

are also important, as it has to be clear, simple, and polite, because single

brand retailers are also controlled not only the product and brand but also the

overall service to the customers.

The strong brand identification towards the individuals is important for self-

aspiration before they can go into the next step, which is social identification.

By managing the brand to have strong identification compare to the other

brands especially in the similar industry will give them uniqueness and

competitive advantage towards customers. Hence, strong brand identification

will start from the personal experience of individuals towards the brand then

it can lead through the other shoppers.

23

1.2 Scope

The thesis examines whether the brand identification, which includes self-

identification and social-identification with a single brand retailers, will lead to

the attitudinal loyalty by using brand community. The products from several large

brand product manufacturers have expanded their retail distribution through many

proprietary brands stores, such as Nike that has their own retail store but also,

sold at Planet Sports, sport store, should be removed from the list as to diminish

the confusion from respondents and get clear understanding of what single brand

retailers are.

The four brands were derived from focus group (Refer to Appendix 1), which

involved 7 people of under graduate and graduate international university students

that range between 20-25 years old. The result of the focus group shows that there

are four companies that will be the main focus of this research. The people who

joined the focus group have already joined a specific brand community each and

have had experiences with the brand community. The brands derived from the

focus group are KFC, Pizza Hut, Starbucks, and The Body Shop. Their brand

communities have been checked to be up to date in their brand activities.

The brands are also chosen to be one of the selected winners from Top Brand

Awards, published in Majalah Marketing (2015). The reason of choosing this

award is because the survey taken from this awards is from Frontier Consulting

Group as the leading and the largest marketing consulting and research firm in

Indonesia. According to Global Network Research (2012), Frontier Consulting

Group has been working for 15 years and become expert in the field of research

within national and international companies.

24

Hence, two of the brands from focus group (The Body Shop and Starbucks) do

not match with the online environment for this research purpose as they do not

have online platform for product transaction and should be eliminated to reduce

confusion of the reader. Moreover, two of the local brands (Hoka Hoka Bento and

CFC) were select to be used as a comparison with the foreign brands (Pizza Hut

and KFC) as they are selected into one category of Fast Food Restaurant, from

Top Brand Awards. Furthermore, Hoka Hoka Bento and CFC have thriving brand

communities, as they are actively updates their content and possess strong brand

presence. Moreover, the members of community display community-related

behaviors such as reviewing products, sharing experience about the brand, and

many more.

The online communities are limited to Fast Food Brands from exploratory study

and secondary research, therefore the communities must have online platform for

customers to order the products otherwise the online attitudinal loyalty cannot be

measured.

The brand communities are a type of online communities, which have become the

most prominent tools that the company uses to gain the community in this digital

era. Thus, from the focus group and data research on Internet, the online

community mostly takes forms of social media such Facebook and Twitter.

The most prominent and most-used of online community in Indonesia is

Facebook and Twitter (Tech in Asia, 2015); therefore any other online

community will be approvable as long as it is connected to the community-related

behavior.

25

The author distributed online questionnaires with target respondents of 160 online

people from the specific brand community in Indonesia with minimum age of 18

years old.

1.3 Problem Statement

According to Kwon and Lennon (2009), the incompetence of managing the

steadiness of the brand message through the single brand retailers will do damage

on the entire brand image of the company. So, the details of the brand message

that will be delivered in marketing aspects such as brand community should be

maintained carefully. Consumer’s access to the online brand community

complicates the ability to maintain the consistency of brand message from the

company. As brands will evolve over time, the importance of sending the

consistent yet up-to-date brand message through the rapid changing of social

environment is highly essential (Keller, 2009).

Thus, brand communities are highly valuable customer relationship management

tools in building brand loyalty. By utilizing the brand communities as a part of

successful marketing strategies, a company will be able to seize the opportunities

in pursuing customer loyalty within the social network environments (Zaglia,

2013). Crucial relationship bonding in the brand communities include customer to

the brand, customer to customer, customer to the firm, are highly important to be

discussed as it will result in the brand loyalty (McAlexander, Schouten, and

Koenig, 2002).

The scope was altered from offline environment in the original journal and can be

translated into online environment as some researchers stated that, nowadays,

purchase transaction have been replaced physically from direct physical

environment to new market space, online environment. Moreover, people have

26

been shifting their attitudinal loyalty into online environment towards specific

brands. So, companies have been changing their focus on maintaining the brand

loyalty to the online environment (Cho and Jerry, 2001). Researchers have found

that, there were respective environment connection between offline atmospherics

such as window display to online atmospherics such as website navigation (Koo

and Lee, 2011). Both contexts were sharing similar and suitable characteristics

and more recently, online atmospherics call for greater research streams

(Puccinelli, Grewal, and Stewart, 2009).

The recent literature manages to show the variety of perspectives regarding the

literature gaps in retailing industries. Previous researchers have conducted

research about retailer as a brand, brand relationships, brand experience with

consumers, private label, internet, brand elements; even deeper, the purpose of

doing the research as to build loyalty by private labeling (Ailawadi and Keller,

2004; Ailawadi, Pauwels, & Steenkamp, 2008; Keller and Lehmann, 2006). Even

though, research about emerging issues of retailing and customer loyalty started

to develop by Grewal and Levy, 2009, to the best of the author’s knowledge, very

few studies have dealt with single brand retailers. Another research has found the

connection of brand community and its relationship to brand identification, as it is

critical for the success of today’s retailer (Keller and Lehmann, 2006). The

current focus is on the brand identification that consists of self-identification and

social identification towards the brand community involvement, which relate to

the attitudinal loyalty (Ailawadi and Keller, 2004). This implies the importance of

how research on brand community would fulfill the theoretical and managerial

gaps in retailing literature.

27

1.4 Aims and Benefit

The author aims to examine retail branding in single brand environment that

includes the influence of self-identification towards the social identification.

Then, the author also evaluates the effect of self-identification towards the brand

community involvement and the effect of social identification towards the brand

community involvement. Furthermore, the influence of brand community

involvement towards the attitudinal loyalty is also examined.

The aims of the research is:

§ To examine whether brand community involvement in single brand

retailers affects the attitudinal loyalty that represents the self and social

identification of the users.

The benefits of the research are:

§ Provide reference to the single brand retailers to evaluate their current

brand community whether it has successfully reflected the self and social

identification of the members, which will create attitudinal loyalty.

§ Deliver insights and deep understanding for the single brand retailers

about the brand community that represents the self and social

identification and its influences on the attitudinal loyalty of the members.

§ Utilize the findings for the company of single brand retailers, as the

foundation to make even better improvement of the brand community that

represents their member’s self and social identification in order to improve

the attitudinal loyalty.

28

1.5 Research Questions

The following is the research questions for the research conducted:

Q1: Does self-identification that the individual has toward the brand affect the

social identification with the brand?

Q2: Does self-identification that the individual has toward the brand affect the

brand community involvement?

Q3: Does social identification that individual has toward the brand affect the

brand community involvement?

Q4: Does the brand community involvement affect the attitudinal loyalty to the

brand?

1.6 Structure

I. Chapter 1: Introduction

The first chapter explains about the background of the research and general

information and facts about retailing, branding, and single brand retailers.

Furthermore, it also concludes into problem identification and reason of choosing

the problem. Then, this chapter also describes about scope, aims and benefits,

research questions and structures of the research.

II. Chapter 2: Theoretical Foundation

The second chapter covers about the theoretical foundation and frameworks of the

model used with the detail explanation of each variable. This chapter explains

each variable by the literature review as the basic theories and relevant findings

from the other similar studies that will contribute in supporting the design of

problem solution.

29

III. Chapter 3: Research Methodology

This chapter purposes are to demonstrate the objective the research and how the

research will be conducted. Therefore, it covers research objectives, research

design, and data analysis method that will due to find conclusions by the research.

IV. Chapter 4: Research Findings

Chapter 4 discusses about the result and implementation of the research method.

The author uses SPSS 22.0 to measure the result after the survey conducted.

Therefore, it includes research data, analysis of the result, and discussion of the

results. The author evaluates the data using (1) Cronbach’s Alpha for reliability

testing, (2) Confirmatory factor analysis for validity testing, (3) Linear regression

analysis for hypothesis testing and (4) ANOVA.

V. Chapter 5: Conclusion and Recommendation

The section contains general conclusion of results from the research. It also

covers limitation during the thesis project. Next part is about recommendation and

suggestions that are delivered for the future researchers and single brand retailers

in Indonesia.

CHAPTER 1 INTRODUCTION - library.binus.ac.idlibrary.binus.ac.id/eColls/eThesisdoc/Bab1/chapter 1-mk-2016-0089.pdf · Indomaret’ Toothbrush at Indomaret’ convenience store), or

Documents