Consumer Considerations In Choosing A Place to Buy: Reducing Observation Factors to Form New Factors

Reader Impact Factor Score
[Total: 19 Average: 4.8]

Published on International Journal of Economics & Business
ISSN: 2717-3151, Volume 1, Issue 1, page 140 – 146
Publication Date: 5 October 2018

Lingga Kencana
University of Jember
Jember, Indonesia

Journal Full Text PDF: Consumer Considerations in Choosing A Place to Buy: Reducing Observation Factors to Form New Factors.

Abstract
This research aims to determine and analyze the factors considered by consumers in choosing a place to buy. The research variable is observation variable. Research analysis is a factor analysis that serves to reduce and summarize certain factors into new factors. The findings shows that out of 15 variables used as research indicators, 4 new factors are formed as the consumer considerations in choosing a place to buy. Factor 1, is food taste factor with its forming variable consists of food taste, opening hours, speed of presentation time, and location. Factor 2, is the cafe reputation factor with its forming variables consists of service hospitality, relatives recommendation, and cafe reputation. Factor 3, is adequate facilities factor with its forming variable consist of price, adequate facilities, and space condition. Factor 4, land and parking lot security factors with its forming variables consists of land and parking lot security and cleanliness of space and equipment.

Keywords: Consumer Considerations, Observation Factors, New Factors.

1. Introduction
The current business development is due to the changing mindset of a dynamic consumer. Thus, understanding the needs of consumers through marketing activities is needed by the company as the basis of ideal customer service. As a lot of companies offer products and services, the consumer has a lot of choices, thus the greater bargaining power (Supranto, 2007:4). Market-oriented thinking is an inevitable necessity. The embodiment of service complexity affects how consumers evaluate the services they purchase (Tjiptono, 2004:97).
One of the profitable business products and services today is cafe restaurant. The selected object is the largest cafe restaurant in Jember Regency, that is Cafe Campus Resto. This cafe restaurant has many customers, because they always succes to make their customers are satisfied. Based on the customers judgement, this cafe resto is good place because of its strategic location, has a spacious space, has a security officer who ensures the customers comfort as well as security of parking vehicles, and a large parking lot making it easier for consumers who come with their personal vehicles. According to Supranto (2007:4), consumers have several different characteristics, where the difference will affect consumer attitudes and behavior in the decision making. Purchasing decisions is the stage of the decision process which the consumer actually purchases the product. Kotler (2008:179) states that the purchase decision process consists of five stages, such as; recognition of needs, search of information, alternative evaluation, purchase decisions, and post-purchase behavior.
The increasing number of cafes and restaurants in Jember Regency demand the cafe managers to manage their business to be consumer-oriented so that the fulfillment of customer needs are always met. The cafe management must be able to realize the needs of its customers, as well as affect the process of purchasing its products. If it is well managed, then existing customers will remain loyal and at the same time attract new customers. The main problem in this research is “What are the factors that consumers consider in choosing a place to buy?”.
The purpose of this research is to determine and analyze the factors considered by consumers in choosing a place to buy.

2. Review Literature
Marketing is the process of managing profitable customer relationships. Two marketing goals are attracting new customers by promising value excellence as well as keeping and growing existing customers by providing satisfaction. Marketing is also the process which the company creates value for customers and builds strong relationships with customers in order to capture the value of customers in return (Kotler, 2008:5).
Consumer behavior is an individual or group action that is directly involved in obtaining and using economic services including the decision-making process that precedes and determines the action (Engel, in Mangkunegara, 2005:3).
The consumer as an object of a marketing activity is a member of various groups, so its behavior will be influenced by several main factors such as; cultural factors, social factors, personal factors and psychological factors (Kotler, 2007:153).
Individual buying decisions are strongly influenced by psychological factors used by consumers in interaction. These factors are also a tool for consumers to recognize their feelings, collect and analyze information, formulate thoughts and opinions, and finally make decisions to purchases. The purchase decision process consists of five stages, such as; problem recognition, search of information, alternative evaluation, purchase decisions, and post-purchase behavior (Kotler, 2005:195).
Conceptual Framework in this research is;

3. RESEARCH METHOD
The research design can be classified as exploratory research. According to Supranto (2004:6), exploratory research is a research conducted intentionally to dig data from respondents and to examine the level where the variables studied are expected to explain the object under research through the collected data.
Population refers to a set of people or objects that have similarities in one or more things and that form the underlying problem of a particular research (Santono, 2001:79). The population in this research is all consumers who make purchasing decisions in a place where to buy the products and using the service at Cafe Campus Resto.
Sampling used in this research is multistage sampling method. This research is using non probability sampling technique, where the population does not have the opportunity to be sampled again (Santono, 2001:80). The use of purposive sampling technique is where the retrieval of elements included in the sample is done intentionally, with the note that the sample is representative or represents the population (Arikunto, 2007:84).
Determination of the number of samples in this research refers to the opinion of Malhotra (in Rahayu, 2005:46), is the amount of samples taken can be determined by at least multiplying the variable by 5. This research uses 15 variables, the the minimum sample will be 75 respondents.
Scale of measurement in this research using Likert scale. According to Maholtra (2003:6), criteria in Likert scale used are ordinal, that means level of number.
The variables in this research are observation variables such as; price (X1), adequate facilities (X2), space condition (X3), land and parking lot security (X4), cleanliness of space and equipment (X5), variant of menu (X6) (X10), speed of presentation time (X11), location (X12), relatives recommendation (X13), product promotion (X14), and cafe reputation (X15).
Factor analysis serves as an analytical tool to perform a summary of variables based on the level of closeness of relationships between variables, so that will get the underlying variable or dominant factors that affect other variables. The main factor analysis is used to reduce data or summarize. This analysis uses factors observed by researchers directly in the field so called exploratory factor analysis (Supranto, 2004:114). According Santoso (2002:97), the stages of factor analysis are; 1) assessing the appropriate variable; 2) factoring and rotation; 3) factor validation, and; 4) create a score factor.

4. FINDINGS
4.1 Respondent Charateristics
The most respondent age is the age range 21 – 25 years that is 44% or 33 people, respondents 18 – 20 is 36% or 27 people and age range more than 25 year is 20% or 15 people. The highest number of respondents is male by 73,34% or 55 people, and women 26,66% or 20 people. The highest number of respondents is students by 64% or 48 employees, 8% employee or 6 people, businessman 17.34% or 13 people, and civil servant 10.67% or 8 persons.

4.2 Instrument Test
Instrument tests conducted in this research are the validity test with Product Moment Pearson’s, reliability test with Cronbach’s Alpha, and normality test with Kolmogorov-Smirnov. The result of the validity test states that the variable data in the research is valid with the significance below 0.05. The result of the reliability test states that the questioner in the research is reliable with the limit of 0.6. The result of the normality test states that the data in the research is normal with a significance above 0.05.