Consumer Perception in the Retail Marketing Mix: Assumptions of Variants for Differences and Comparisons

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Published on International Journal of Economics & Business
Publication Date: August, 2018

Lingga Kencana
Faculty of Economic and Bussiness
University of Jember
Jember, East Java, Indonesia

Journal Full Text PDF: Consumer Perception in the Retail Marketing Mix: Assumptions of Variants for Differences and Comparisons.

Abstract
Abstract: This study aims to determine and analyze consumer assumptions, differences in consumer perceptions, and comparison of the level of perception of traditional retail consumers with modern retailers in the attributes of the retail marketing mix. The analysis used in the study was a levene test and independent sample t test. Levene test serves to determine the similarity or differences in variance in the research variables, while independent samples t test serves to analyze the presence or absence of two unrelated sample groups, and analyze the comparison of the level of an object in a particular group. The results of the study are; 1) Consumer assumptions in traditional retail and modern retail that are considered to have the same variant properties are product, price, promotion, process and physical environment. While the assumptions of consumers in traditional retail and modern retail that are considered to have the same variant properties are places and people; 2) There are differences in consumer perceptions in the retail marketing mix which include products, prices, promotions, places, people, processes and physical environment between traditional retail and modern retail; 3) Comparison of perceptions of traditional retail consumers is higher when compared to the perception of modern retail consumers in the attributes of the retail marketing mix consisting of product, price, place, people and process attributes. The comparison of the perception level of modern retail consumers is higher compared to the perception of traditional retail consumers in the attributes of the retail marketing mix which consists of promotional attributes and physical environment.

Keywords: Consumer Perception, Retail Marketing Mix, Traditional and Modern Retail, Assumptions of Variants, Differences and Comparisons.

1. INTRODUCTION
Nowadays business activities in Jember Regency are experiencing an increase in development, many companies compete by utilizing existing business opportunities and implementing good and appropriate marketing strategies to compete with other companies to reach the market goals and objectives of the company in order to dominate the market. At present, one of the businesses that is developing very rapidly in Jember Regency is a retail business.
Retail is divided into 2, namely traditional retail and modern retail. Traditional retail is a business place in the form of a store business that is owned and managed by small and medium traders by the community with small capital and the process of selling goods with bargaining. Meanwhile, modern retail is a store that is managed by modern management as a provider of goods and services with quality and good service to consumers such as minimarkets, and supermarkets. Sujana (2005:11), modern retail has products that are better quality and more secure because through rigorous selection, goods that do not meet the classification requirements will be rejected. In quantity, modern retail generally has a measured inventory of warehouse goods. In terms of price, modern retail has a price tag that is definitely listed regarding the clarity of prices before and after being taxed.
The growing development of modern retail development is now felt by many parties affecting the existence of traditional retail. Modern retail is managed professionally with complete facilities. On the other hand, traditional retailers still have problems with classical problems around less professional management and shopping inconvenience. Almost all products sold in traditional retail can all be found in modern retail. Since the presence of modern retail, traditional retailers allegedly felt a drastic decline in income and profits, which made traditional retailers feel anxiety with the development of modern retail.
The growth of the retail business does provide various alternatives to consumers as a means to shop. Many alternative retail businesses must pay attention to various factors, one of which is the consumer perception factor. Such rapid growth in the retail business in Jember Regency will indirectly affect consumers’ perceptions of shopping. Kotler (2004:266), consumer perception is the process by which a consumer chooses, formulates and selects something that will give him input about information to create a meaningful picture of what he has felt.
Planning carried out by a company or business owner from traditional retail and modern retail in attracting the interest of consumers to increase purchases and business profits, can be done by providing an advantage or strategy in the variant of the retail marketing mix that is planned properly to form good perceptions and assumptions from its consumers in attracting buying interest from consumers. Ziethaml (2005:19), increasing the ability to compete in a retail service business can be done by increasing and developing retail marketing mix consisting of products, prices, promotions, places, people, processes and physical environment.
Traditional retailers that have their advantages by applying variations in their products, low prices, and labor in a familial process can be relied upon in providing a good perception of their customers, while modern retailers who have advantages in implementing chain strategies from the concept of production and distribution of a the product, labor generated from the selection process, and the design of a comfortable place can also be relied upon in giving a good perception to its customers. This good planning will provide consumers with perceptions and assumptions in assessing traditional retail and modern retail. Based on the existing phenomena and problems, several research problems can be formulated, namely; 1) What is the assumption of consumers in traditional retail and modern retail?; 2) Are there differences in perceptions of traditional retail consumers and modern retailers?, and; 3) What is the comparison between the level of perception of traditional retail consumers and modern retailers in the attributes of the retail marketing mix?
Based on the formulation of the problem, the purpose of this study is; 1) To find out and analyze consumer assumptions in traditional retail and modern retail ?; 2) To find out and analyze differences in perceptions of traditional retail consumers with modern retail, and; 3) To find out and analyze the comparison of perceptions of traditional retail consumers with modern retailers in the attributes of the retail marketing mix.

2. LITERATURE REVIEW
The marketing concept states that the key to achieving organizational goals is to be more effective than competitors in integrating marketing activities to determine and satisfy the needs of the target market (Kotler, 2007:12). The core concepts of marketing include needs, desires, demand, production, value and satisfaction, exchanges, transactions and market, marketing and market relations. We can distinguish between needs, desires and requests. The need is felt the absence of a state certain basic satisfaction. Desire is a strong will that satisfies specific needs. The demand is a desire for a specific product that is supported by the ability and willingness to buy it.
Perception plays an important role in marketing. Marketing itself is a competition for perceptions about products and services. In marketing, perception is considered more important than the reality of something that is considered right. A person’s perception with other people is different, what is known to someone who reflects what was learned in the past, current state of mind, and what is actually in reality outside of him. This can explain why products of the same value, the same quality can be perceived differently (Kotler, 2008:57).
Mowen (2004:6), a marketer in knowing consumer needs to learn consumer behavior, because by knowing and understanding consumer behavior it is easier in the marketing process. Consumer behavior is defined as the actions of individuals who are directly involved in the business of obtaining and using economic service goods including the decision-making process that precedes and determines the action. Consumer behavior as a study of purchasing units and exchange processes involving the acquisition, consumption, and disposal of goods, services, experiences and ideas. So from the above understanding can be examined that the purchases made by individuals or groups this can be seen from the words of the buying unit. According to Kotler (2004:15), the marketing mix is a set of marketing tools (marketing mix) that can be used by companies to achieve marketing goals in the target market. According to Zeithaml (2005:18), the service marketing mix is elements of corporate organization that can be controlled by the company in satisfying consumers.
Ziethaml (2005:19), the marketing mix consists of 7P namely product, price, place, promotion, people, process and physical evidence. 1) Product is a tangible offering from the company to the market which includes the quality, design, shape, brand and product packaging; 2) Price is a number of values exchanged by consumers for the benefit of owning or using products or services whose value is determined by the buyer and seller through the bargaining process or determined by the seller; 3) Place is a combination of location and distribution that is related to the way of service delivery through a strategic location; 4) Promotion is a form of marketing communications and is a marketing activity that seeks to disseminate information, and remind target markets; 5) People are all actors who play a role in the presentation of services so that they can influence the perception of buyers; 6) Process is all actual procedures, mechanisms, and activity flows used to deliver services; 7) Physical Evidence is the physical environment of the service business in which services are created and where service providers and customers interact. The physical environment represents key decisions made by service providers regarding building design and layout.
Consumers assess based on the percentage of the determinant attributes that exist in retail. The determinant attribute can reflect elements that can be controlled by a retail to satisfy its customers such as a marketing mix managed by traditional retail and modern retail. The results of customer perceptions of the assessment of the marketing mix in traditional retail and modern retail will provide knowledge and information on assessing consumer perceptions of whether or not the differences are owned by traditional retail and modern retail.

Figure 1. Conceptual Framework
3. RESEARCH METHODOLOGY
This research is a descriptive study that uses survey methods. Umar (2005:88), a descriptive research with survey method is a research conducted to get benefits for descriptive purposes with certain measurements so that it helps and compares existing conditions with predetermined criteria and also in the implementation of evaluations.
The population in this study was customers who had shopped in traditional retail and modern retail in Jember Regency. Santoso (2005:79), the population refers to a group of people or objects that have similarities in one or several things and that form the main problem of a particular research.
The sample is a part or number of certain footage taken from a population and examined in detail (Santoso, 2005:80). Sampling used in this research is using multistage sampling method. Phase 1 is to use cluster sampling, used to determine several areas demographically in Jember Regency which has the opportunity and has good potential for shopping activities in modern and traditional retail. There are 7 regions selected, namely Sumbersari, Patrang, Kaliwates, Arjasa, Kalisat, Ambulu and Tanggul. The second stage is to use non-probability sampling, which serves as the sorting of respondents who are sampled in the study that the respondents who have been sampled no longer have the opportunity to become the second sample. The third stage is using purposive sampling, which serves as a determinant of the criteria of respondents that are in accordance with the criteria for research. The purposive sampling criterion is often shopping in traditional retail and modern retail, at least 3 times a month. Stage 4 is using proportional sampling which serves as a divider for the number of respondents sampled in one research area.
The minimum sample size is taken by multiplying indicators or variables with numbers 5 to 10 (Supranto, 2005:46). Referring to the minimum number of samples that must be taken, the existing variables are 7 with 22 indicators multiplied by 10, which is 220 respondents. The number of samples for traditional retail consumers is 220 respondents and the number of samples for modern retail consumers is 220 respondents. The total sample used in this study was 440 respondents. The distribution of the number of samples for the Sumbersari Subdistrict was 24 respondents, Patrang Subdistrict as many as 21 respondents, Kaliwates Subdistrict as many as 33 respondents, Arjasa Subdistrict as many as 27 respondents, Kalisat District as many as 17, Ambulu District as many as 11 respondents and Tanggul District as many as 7 respondents.
The variables used in this study are; 1) Products (X1) with indicators, namely the completeness of a product, the diversity of product brands, and the level of product quality; 2) Prices with indicators, namely the price level of the product, the level of conformity of the price of the product with the quality of the product, and the affordability of the price offered; 3) Promotion (X3) with indicators namely the attractiveness of promotions, appropriate promotions, and retail publicity; 4) Place (X4) with indicators that are strategic places, ease of going to retail locations, and access roads to retail places; 5) People (X5) with indicators of adequate sales force, good salesperson performance, and organized level of sales force in retail; 6) Process (X6) with indicators, namely the level of duration of retail operation time, level of service provided by retail, and level of retail security; 7) Physical environment (X7) with indicators such as comfort level of retail space, level of suitability for laying retail layout, level of cleanliness of retail space, and level of comfort and safety of parking.
The measurement scale uses a Likert scale with ordinal data with a level or score of 1 to 5. Purwanto (2007:63), the Likert scale is used to measure attitudes, opinions and perceptions of people through questionnaire answers and ordinal answers with the meaning of the numbers means levels ie strongly disagree = 1, disagree = 2, quite agree = 3, agree = 4, and strongly agree = 5.
Analysis of the data used is a levene test and independent sample t test. Levene test is used to determine the similarity or differences in variance in the research variables based on the assumptions of certain sample group perceptions. Independent Sample t test is used to determine and analyze the presence or absence of differences in two unrelated sample groups, and analyze the comparison of the level of an object in a particular group caused by the presence of a distinctive influence or special treatment in the group of objects studied (Santoso in Prayitno, 2010 :32) Before the t test (independent sample t test) was carried out, it was tested for variance similarity (homogeneity) with F test (leven’s`s test), meaning that if the variants were the same, then using equal variances assumed (assumed to be the same variant) and if different variants used equal variances not assumed (assumed to be a different variant). After going through the similarity test variant stage, it can be known the variables that have the same or different variants. Test t test (independent sample t test), can be carried out using assumptions from the test F test (levene`s test), using equal variances assumed and equal variances not assumed.

4. RESEARCH RESULT
4.1 Characteristics of Respondents

Table 1. Characteristics by Age

Traditional retail, the majority of its customers are over 40 years old as many as 137 people (62.27%), the minority of their customers are between 20-30 years old as many as 31 people (14.09%), and aged between 31-40 years as many as 52 people (23.64%) The majority of traditional retail customers are elderly customers because older customers need a variety of primary products, such as rice, cooking oil, eggs and other products that are also needed.
Modern retail, the majority of customers aged between 31-40 years are 154 people (70%), the minority of customers are 20-30 years old as many as 49 people (22.27%), and over 40 years old as many as 17 people (7.73% ) The majority of modern retail customers are mature customers because more adult customers need a variety of secondary products, such as children’s products, household products, and other products that are also needed.

Table 2. Gender Characteristics of Respondents

Traditional retail, the majority of customers are 175 people (79.55%), the minority of customers are men as many as 45 people (20.45%). The majority of traditional retail customers are female gender customers because women need more needs for family and household life, such as shopping for cooking needs, shopping for other family needs and so on.
Modern retail, the majority of its customers are 167 people (75.91%), the minority of its customers are male as many as 53 people (24.09%). The majority of modern retail customers are female gender customers because women shop based on their household needs to meet their secondary needs, such as shopping for product needs for children, buying instant food in packages for family needs and so on.

4.2 Instrument Test
Instrument testing in this study uses validity and reliability testing. Validity test was carried out with Pearson’s product moment test with a significance level below 0.05 or 5%, stated that all indicators in the variables proved valid. Reliability test was carried out by crobach’s alpha test with a limiting value of 0.6, stated that the overall quaternary was based on proven reliable indicators.

4.3 Levene`s Test (F test)
Test of variance similarity (homogeneity) is done by using the test to determine the variant properties of the variables used, if it is assumed the variant is the same then using equal variances assumed and if the variant is different using equal variances not assumed.

Table 3. Levene,s Test

Levene results, the test shows that the Ho criterion is accepted if the significance> 0.05, and Ho is rejected if the significance is <0.05, it can be concluded that the equal variances assumed are the products, prices, promotions, process and physical environment. Whereas those that have variant properties are equal (equal variances not assumed), namely places and people.

4.4 Independent Sample t test
The t test (Independent Sample t test) can be carried out using the assumption of the test results of the F test (Levene’s Test), using equal variances assumed and equal variances not assumed. Independent Sample t test is used to determine whether or not there are differences in the attributes of two unrelated sample groups and the comparison of the level of an object in a particular group caused by the presence of a distinctive influence or special treatment in the group of objects studied.

Table 4. Sample t test

Hypothesis testing, this test is conducted to find out whether or not there is a difference between the average determinant attributes, namely products, prices, promotions, places, people, processes and physical environment that exist in traditional retail with modern retail. Hypothesis testing is done with a significance level of 5% (t distribution table is searched at α = 5%:2 = 2.5%, two-sided test) and with degrees of freedom (df) n-2 or 220-2 = 218 with values for t -table is 1.971. Hypothesis test results can be stated that there are differences in consumer perceptions between product attributes, prices, promotions, places, people, processes and physical environment in traditional retail with modern retail. The positive t count means that the comparison of the perception level of traditional retail group respondents is higher compared to the perception of respondents of modern retail group, while the negative t value is negative, meaning that the comparison of the perception level of traditional retail group respondents is lower compared to the perception of modern retail group respondents.

5. DISCUSSION
The results of research conducted on traditional retail and modern retail consumers in 7 regions of Jember Regency namely Sumbersari, Patrang, Kaliwates, Arjasa, Kalisat, Ambulu and Tanggul, using levene test analysis and independent sample t test, show that the determinant attribute is mix retail marketing which is used as a differentiator and traditional retail and modern retail which is used as a comparison in the research group, shows that there is a difference in consumer perceptions of traditional retail and modern retail and the majority of the comparison of traditional retail group consumer perceptions is higher compared to the overall modern retail group consumer perception.
The test results from the levene test and independent sample t test analysis show that there are differences in consumer perceptions between product attributes, prices, promotions, places, people, processes and physical environment of traditional retail with modern retail, with the other meaning that consumer perception in evaluating products, prices, promotion, place, people, processes and physical environment of traditional retail and modern retail are different. Products, prices, promotions, processes and physical environment that exist in traditional retailers and modern retailers are assumed to have the same variants, but consumers’ perceptions in assessing the average product, price, promotion, place, person, process and physical environment are different. . People and traditional retail and modern retail processes are assumed to have different variants, and consumer perceptions in assessing the average person and process are different.
Consumer perception of traditional retail products is higher than modern retail. This indicates that the products offered by traditional retailers are more complete than modern retail, the brands of products that offer traditional retail are more diverse than modern retail, and the quality of products from traditional retailers is better than modern retail. Consumer perceptions of product differences can occur because traditional retailers usually provide products or merchandise oriented to the market and its consumers (which their customers need), the products in traditional retail are the result of market selection for the needs of the community and usually traders from traditional retail supply its products from the market or distributor agents of product providers. Different things are shown by modern retail and modern retailers usually provide products or merchandise oriented to tenants of the place and production results from the company as the manager of production policies. The implication, in the minds of consumers, product attributes are things that distinguish between traditional retail and modern retail.
Consumer perceptions of traditional retail product prices are higher than modern retail. This indicates that the prices of products from traditional retailers are cheaper than modern retail, the prices of products that offer traditional retail are more suitable than modern retail, and the prices of products from traditional retailers are more affordable than modern retail. Consumer perceptions of price differences can occur because traditional retailers usually set the selling price of their products based on prevailing market prices and traditional retailers usually sell their products by taking a small profit from their gross price (transportation and product taxes), so that traditional retailers can set their product prices more affordable. Different things are shown by modern retail and modern retailers usually sell their products based on the results of raw material production costs because the product supply is a marketing strategy chain of modern companies and retailers in determining the selling price is also oriented to the amount of tax imposed by the government on modern retail. The implication, in the mind of consumers, price attributes are things that distinguish between traditional retail and modern retail.
Consumer perception of modern retail promotion is higher than traditional retail. This indicates that the promotion of traditional retailers is less attractive than modern retail, traditional retail promotion is rarely done in real terms than modern retail, and publicity from traditional retailers is less favorable or safer than modern retail. Consumer perceptions of differences in promotion can occur because traditional retailers usually promote their products with price game programs and pamphlets that are rarely carried out are actually shown for a promotion of a product from traditional retail. Different things are shown by modern retail, modern retailers usually do promotions with price games, there are additional product bonuses in purchases and pamphlets that are intended for real promotion are attractively formed. The implication is that in the minds of consumers, promotional attributes are things that distinguish between traditional retail and modern retail.
Consumer perception of traditional retail places is higher than modern retail. This indicates that the place of traditional retail is a strategic place and is quite easy to reach than modern retail and that access to traditional retailers is easier than modern retailers that only exist in certain places. Consumer perceptions of differences in place can occur because traditional retailers usually have a place for their merchandise that is quite easy to see and reach by consumers and the place that is used as retail is usually a place of residence or inheritance of land from their parents to become retail. Different things are shown by modern retail, modern retail usually has a place that in fact is a rented place located in a certain area and quite strategic, but the place of modern retail is far enough for consumers to reach it because the existing modern retail is built on land suitability or strategic business place in certain places. The implication is that in the minds of consumers, place attributes are things that distinguish between traditional retail and modern retail.
Consumer perception of traditional retailers is higher than modern retail. This indicates, that people as servants of traditional retail are people who have good performance with entrepreneurship and have enough labor to serve their customers. Consumer perceptions of differences in people as labor can occur because traditional retailers usually make their workforce the owners of traditional retail businesses and usually have workers as laborers to assist in serving their customers, traditional retailers are ordinary people who have a family level good and usually behave appropriately and informally. Different things are shown by modern retail, modern retailers usually have a workforce based on the results of the selection of the labor force in modern retail and modern retailers usually behave formally in each of their servants because the workforce is supervised by an in-store assistant. The implication is, in the minds of consumers, the attributes of people are things that distinguish between traditional retail and modern retail.
Consumer perception of the process of traditional retail is higher than modern retail. This indicates, that the operational duration of the opening hours of traditional retailers that meet the needs of their customers, the level of service provided and the security that is already guaranteed for the consumers. Consumer perceptions of process differences can occur because traditional retailers usually operate from morning to night from 5 am to 9 pm, and the services provided are sufficient to meet the needs of their customers as well as security guarantees for their consumers in seeking their security on traditional retail business owners. Different things are shown by modern retail, modern retailers usually operate from morning to night hours from 7 am to 11 pm, and the services provided can also meet the needs of their customers as well as the security guarantees provided to consumers by the workforce from modern retail. The implication, in the minds of consumers, process attributes are things that distinguish between traditional retail and modern retail.
Consumer perception of the physical environment of modern retail is higher than traditional retail. This indicates that the physical environment of modern retail has provided comfort and suitability for its consumers in seeking their needs. Consumer perceptions of differences in the physical environment, can occur because modern retailers usually design retail space by providing comfort for visitors and consumers in finding their needs, the existing spatial layout is adjusted to the same product variants so that consumers can choose their own products, the room is always it is kept clean by the workforce of modern retailers, and the parking space provided for its consumers is designed with a broad size making it easier to park vehicles for its consumers. Different things are shown by traditional retail, traditional retailers usually design their rooms according to the needs of retail business owners as managers so that consumers can only ask and order the items they are looking for, the existing layout is also adjusted to the needs of the retail owner as the manager, the cleanliness of the existing space usually not too guarded because retail owners will usually only clean it in the morning only, and the parking lot is only based on the excess retail size that is reserved for consumers to park their vehicles. The implication, in the mind of consumers, the physical environment attributes are the things that distinguish between traditional retail and modern retail.

6. CONCLUSION
The conclusion in this study is; 1) Consumer assumptions in traditional retail and modern retail that are considered to have the same variant properties are product, price, promotion, process and physical environment. While the assumptions of consumers in traditional retail and modern retail that are considered to have the same variant properties are places and people; 2) There are differences in consumer perceptions in the retail marketing mix which include products, prices, promotions, places, people, processes and physical environment between traditional retail and modern retail; 3) Comparison of perceptions of traditional retail consumers is higher when compared to the perception of modern retail consumers in the attributes of the retail marketing mix consisting of product, price, place, people and process attributes. The comparison of the perception level of modern retail consumers is higher compared to the perception of traditional retail consumers in the attributes of the retail marketing mix which consists of promotional attributes and physical environment.

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