CHAPTER I 1.

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

Dress code that follows the fashion show also our personality and idealism. Fashion today is a business big enough and profitable. That the symptoms of a busyhectic with a variety of products leads to a fashion show, when consumers increasingly want to be recognized as a personal identity. Therefore, they deliberately shape its own identity and then unite with a group that is in harmony with it. This is the pride of someone if they could enter into what is becoming a common trend, because it means that he belonged to fashionable modern alias because it's always fashionable. (Capturing the Dynamics of Fashion Business Success, www.swa.co.id, 2004) Fashion is a popular, one's personality, and a time frame. So understandable why a popular style that can be said of this month behind the times a few months later. Fashion system includes all the people and organizations involved in creating and changing the meaning of symbolic meaning in the form of goods. Although people often equate fashion with clothing, whether everyday clothes or prom dresses are exclusive (haute couture), it is important to remember that the fashion process affects all types of cultural phenomena, such as music, art, architecture and even science. Fashion can be considered as a code, or language that helps us understand these meanings. However, fashion seems to tend to be more context-dependent than language. The point is, the same thing can be interpreted in different ways by different consumers and in different situations. So there is no definite meaning but leaves freedom for the translator in the mean. According to Solomon in his book 'Consumer Behavior: European Perspective', 2

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

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

1.2

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

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

1.3

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

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

1.4

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

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

1.5

Research Usefulness

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

1.6

Literature Review

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

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

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

and managerial implications of these findings are discussed.

The third journal is Consumer Innovativeness: A marketing approach By innovativeness we mean the predisposition of a consumer to adopt a product earlier than most others. Various studies have shown that across product categories, innovators tend to be: opinion leaders, risk takers, more likely to obtain information from mass media than through word of mouth, open to new ideas and change, relatively young etc. Marketers want to identify the segment of the market that is most likely to adopt a new product when it is the first introduced. This article describes we ask some key questions about the nature of innovativeness and try to make a correlation between characteristics of the innovators and innovativeness.

The next study is to analyze the dominant factor of Sensory and Cognitive innovativeness to Consumer Innovativeness to the Student Shopping Style. In many journal that I have been use for support my research I found similar case that will support my research. In my research used of multiple Regression Analysis method.

TABLE 1.6 LITERATURE REVIEW

Title

Year

Author

Variable Use

Tools of

Result

Comment

Consumer innovativeness and shopping styles

2010

Ji Eun Park

Sensory and Cognitive Innovativenes s

Analysis Use Structural equation model

Differentiating between cognitive and sensory innovativeness

2002

Meera P. Venkatrama n

Concepts, measurement, and implications

Simple

Regression

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

The paper is the first step in exploring the relationship between consumer innovativeness and consumer shopping style This article undifferentiate d construct but can be distinguished as cognitive and sensory innovativeness
This article describes we ask some key questions about the nature of innovativeness and try to make a correlation between characteristics of the innovators and innovativeness.

Consumer Innovativeness: A marketing approach

2009

Costinel Dobre

Correlation between innovators and innovativenes s.

Descriptive Correlations

CHAPTER II
10

THEORETICAL REVIEW

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

2.1

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

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

Burns and Bush (2006:4) defined marketing as an organization function, not a group of persons or separate entity within the firm. It is also a set of processes and not a single tactic such as creating and end-aisle display. The processes create, communication, deliver value to customers. Marketing is not trying to sell customer something; rather, it is providing customers with something they value. The objective of marketing is to create and manage customer relationships for the benefit of the organization and its stakeholders. Marketing, more than any other business function, deals with customers. Understanding, creating, communicating, and delivering customer value and satisfaction are at very heart of modern marketing thinking and practice. Today Marketing must be understood not in the old sense of making scale telling and selling but in new sense of consumer innovativeness needs. Selling occurs only after a product is produced. By contrast, marketing starts long before a company has a product. Marketing is undertaken to access needs, measure the extent and intensity, and determine whether a profitable opportunity exist.

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

12

Marketing strategy is a process that can allow an organization to concentrate its limited resources on the greatest opportunities to increase sales and achieve a sustainable competitive advantage. A marketing strategy should be centered around the key concept that customer satisfaction is the main goal. Marketing strategy is a method of focusing an organization's energies and resources on a course of action which can lead to increased sales and dominance of a targeted market niche. A marketing strategy combines product development, promotion, distribution, pricing, relationship management and other elements; identifies the firm's marketing goals, and explains how they will be achieved, ideally within a stated timeframe. Marketing strategy determines the choice of target market segments, positioning, marketing mix, and allocation of resources. It is most effective when it is an integral component of overall firm strategy, defining how the organization will successfully engage customers, prospects, and competitors in the market arena. 2.2.1 Innovative Marketing According Kotler and Gary Amstrong (2005:526) Innovative Marketing is A principle of enlightened marketing that requires that a company seek real product and marketing improvement. Innovation is a change in the thought process for doing something, or the useful application of new inventions or discoveries. It may refer to an incremental emergent or radical and revolutionary changes in thinking, products, processes, or organizations.

13

Following Schumpeter (1934), contributors to the scholarly literature on innovation typically distinguish between invention, an idea made manifest, and innovation, ideas applied successfully in practice. In many fields, such as the arts, economics and government policy, something new must be substantially different to be innovative. In economics the change must increase value, customer value, or producer value. The goal of innovation is positive change, to make someone or something better. Innovation leading to increased productivity is the fundamental source of increasing wealth in an economy. In the organizational context, innovation may be linked to performance and growth through improvements in efficiency, productivity, quality, competitive positioning, market share. All organizations can innovate, including for example hospitals, universities, and local governments. While innovation typically adds value, innovation may also have a negative or destructive effect as new developments clear away or change old organizational forms and practices. Organizations that do not innovate effectively may be destroyed by those that do.

2.2

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

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

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

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

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

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

marketing channels, as well as the acquisition producers of other organizations and institutions. Business-to-business buying is beyond the scope of this text, which primarily focuses on consumer behavior.

The ultimate goal of consumer behavior is to help marketers better understand the process of activities and activities of consumer behavior, and thus to anticipate how marketing strategies and tactics will influence consumers and affect the products and services various types of consumers will buy. In other words, as marketers come to understand customer behavior, they are better able to predict how consumers will respond to various environmental and informational cues.

Marketers can then configure and fine-tune their strategies and tactics accordingly. Additionally, in todays highly competitive market place, a sound understanding of consumer behavior helps marketers gain a competitive advantage and establish positive and lasting customer relationships.

In Consumer Behavior

the producer should to know about the element of

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

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

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

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

2.3

Consumer Preferences Preferences are essential to treat conflicting information in non-monotonic

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

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

17

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

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

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

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

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

2.4

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

growth by offering modified or new product to current market segments Creation product with new or different characteristic that offer new or additional benefit to the customer. It may involve modification of an existing product or its presentation, or formulation of an entirely new product that satisfies a newly defined customer want.

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

2.5

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

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

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

2.6

Conceptual Framework

Figure 2.6 Conceptual Framework

Cognitive Innovativeness

Shopping Style

Sensory Innovativeness

The theoretical framework is the foundation on which the entire research project is based. It is logically developed, described, and elaborated network of associations among the variables relevant to the problem situation. The theoretical framework offers the conceptual foundation to proceed with the research. 20

This research starts from the theory of consumer innovativeness which is defined to have the innovations about the shopping styling. In this research, Cognitive and Sensory Innovativeness are the independent variable Furthermore, this research is designed to analyze the influence of Consumer Innovativeness which is consists of Cognitive and sensory Innovativeness to Consumer Innovativeness on Shopping Style. Consumer Innovativeness is the dependent variable

CHAPTER III RESEARCH METHOD

21

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

3.1

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

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

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

22

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

3.2

Population and Sampling Method

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

23

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

3.3

DEFINITION AND VARIABLES MEASUREMENT

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

3.3.2 Variables Measurement 24

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

3.4

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

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

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

3.4.2 Multiple Linear Regression Analysis There are more than one factor of independent variables, so this research will use multiple regression reflecting the relationship between a dependent variable in this case shopping style and two or more independent variables dimensions of Consumer Innovativeness Carlson and Betty Throne (2003:416), multiple regression analysis provides two important results. First, is prediction of a dependent or outcome variable. The second objective is estimating the marginal effect of each independent variable. This research will analyze the data by using software SPSS. The equation model of multiple regression analysis which used in this research can formulate as shown below: Y= Where: Y = Shopping Style (dependent variable) = Constant/ intercept X1 X2
1, 2,

1X1

2X2+

= Cognitive Innovativeness = Sensory Innovativeness = the slope for each independent variable. = error standard or error term

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

26

3.4.2.1 Testing the Goodness of Fit : Coefficient of Correlation (R) and Coefficient of Determination (R) Multiple correlation coefficients (R ) and the Determination Coefficient (R2) the dual correlation coefficient was the figure that showed the strength of relations between two or more the free variable. Coefficient of Multiple Correlation (R) is used to measure the strength of relationship between (dependent variables) and X (independent variables) (Newbold, et.al, 2003; 431) with the consideration that: >0.70 means a very strong positive association 0.50 0.69 means a substantial positive association 0.30 0.49 means a moderate positive association 0.10 -0.29 means a low positive association Zero if there is no association (-0.01) (-0.09) means a negligible negative association (-0.10) (-0.29) means a low negative association (-0.30) (-0.49) means a moderate negative association < -0.70 means a very strong negative association According to Arsyad (1994: 186), the multiple determination coefficients are the value that shows the proportion of the dependent variable that is explained by the independent variable variation. It means R shows how big the contribution of the independent variable (X) is to up and down dependent variables (Y). In addition 27

Newbold, et.al (2003:430) says that. The Coefficient of determination (R2) routinely is used as a descriptive statistic to describe the strength of the linear relationship between the independent variables and the dependent variables. The formula that is used in multiple determination calculation is:

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

A?

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

3.4.3 Testing of Classical Assumptions According to Sulaiman (2004:87), a multiple linear regression model should meet some basic assumption below:

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

28

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

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

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

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

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

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

3.4.4.1 F Test A F-test as any statistical test in which the test statistic has an F-distribution if the null hypothesis is true. In the simplest case, it is used to examine the effect of some factors on some outcome. To test the influence between the dependent variable and independent variables, the Ftest uses a level of significance ( ) = 0.05 or equal to 95% level of acceptance. Ho : Ha : =0 0

Ho is rejected if Fcount Ftable, If Ho is rejected than Ha will be accepted. Then calculate F as:

RSS1 RSS2
p2 p1

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

3.4.4.2 T Test 31

A T-test is any statistical hypothesis test in which the test statistic has a students distribution if the null hypothesis is true. It is applied when the population is assumed to be normally distributed but the sample sizes are small enough. To test the correlation between dependent and independent variables, Ttest uses level of significance = 0.05 or equal to 95% level of acceptance. Ho : Ha :
j

=0 0

Ho = Will be rejected if tcount ttable. If Ho is rejected than Ha is accepted. The value of t is done by formula: t = bj- j/sbj Where, bj = jth variable coefficient
j

= jth parameter

sbj = jth standard deviation.

CHAPTER IV RESULT AND DISCUSSION

32

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

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

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

Gender
male female

30%

70%

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

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

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

Age
20-22 years old 23-24 years old

16%

84%

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

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

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

Income
< 1 million 1 - 2.5 millions > 2.5 millions

20%

24%

56%

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

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

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

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

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

Pearson Correlation

Sig. (1-tailed)

SS CI SI SS CI SI SS CI SI

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

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

Table 4.2.3 Result of R and R2

b Model Summary

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

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

Source: Data Processed, 2010 The coefficient of correlation (R) is 0.694 meaning the level of relationship between independent and dependent variable is considered as a substantial positive relationship. In the other words, Cognitive Innovativeness and Sensory Innovativeness, as independents variables and Shopping Style as dependent variable have a substantial positive relationship. The coefficient of determination is identified by R2 = 0.482 which is the correlation coefficient quadrate (0.694)2 = 0.482. R Square is usually called the coefficient of determination which is 0.482 or 48.2% that means Shopping Style is able to be explained by Cognitive Innovativeness and Sensory Innovativeness. And the rest 51.8% are caused by the other factors.

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

Table 4.2.4 Multiple Linear Regression Analysis Output

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

Model 1

(Constant) CI SI

t 3.697 2.755 1.003

Sig. .001 .008 .321

a. Dependent Variable: SS

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

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

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1.

Constant (E) 1.395 shows the influence to relationship between Cognitive Innovativeness (X1) andSensory Innovativeness (X2) factors to Shopping Style

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

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

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

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

Model 1 Constant CI SI

.926 .298

1.080 1.076

a. Dependent Variable : SS

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

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

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Figure 4.5.2 Heteroscedasticity Test Output

Scatterplot

Dependent Variable: SS
2

Regression Standardized Predicted Value

-1

-2

-3

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

Regression Standardized Residual

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

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

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Figure 4.5.3 Normality Test Output

Normal P-P Plot of Regression Standardized Residual

Dependent Variable: SS
1.0

0.8

Expected Cum Prob

0.6

0.4

0.2

0.0 0.0 0.2 0.4 0.6 0.8 1.0

Observed Cum Prob

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

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4.1.6 Hypothesis Testing This result is intended to determine the influence of Cognitive Innovativeness and Sensory Innovativeness on the Shopping Style a dependent variable partially and simultaneously. The F-test used to determine the simultaneous effect, while the T-test is used to determine the partial effect of each independent variable to the dependent variable.

4.1.6.1 F-test The simultaneous test (F-test) was conducted to identify the independent variables which consist of Cognitive Innovativeness (X1) andSensory Innovativeness (X2)onthe Shopping Style (Y)simultaneously.

Table 4.6.1 Simultaneous Test (F-test) Output

b ANOVA

R r i R i u l T t l i t r :(

2 47 49

. r

t), SI,

b. D p

t V ri bl : SS

Source: Data Processed, 2010

M 1

Squ r 7. 4 . 49

Su f Squ r 15.2 16.411 1.697

  

            

F 21. 9

Si . .

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

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

Style,simultaneously. Thereby, hypothesis 1 is accepted.

4.1.6.2 T-test Table 4.6.2

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

Model 1

(Constant) CI SI

t 3.697 2.755 1.003

Sig. .001 .008 .321

a. Dependent Variable: SS

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

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

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

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

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

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

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CHAPTER V CONCLUSION AND RECOMMENDATION

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

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

substantial positive influence to the Shopping Style. 2. The most significant element that influences Shopping Style is Cognitive Innovativeness. 3. The findings are, Y = 1.395 + 0.487 X1+ 0.139 X2,meaning that an increase of one unit of change in Cognitive Innovativeness (X1), leads to an increase of 0.487 units of change in the Shopping Style as Y, an increase of one unit of change in Sensory Innovativeness (X2), leads to expected in increase of change in the Shopping Style as Y. 0.139 units of

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6.2 Recommendation This thesis was done with hope that it can be a contribution. There are some limitations in this thesis research but it represents some of the Student of Faculty of Economics SamRatulangi University Manado. The following are recommendations as input that hopefully can be useful as suggestions.

1.

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

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

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

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

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APPENDIX

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

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

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

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

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