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FeliciaWangEvoSampetuaHariandja PDF
FeliciaWangEvoSampetuaHariandja PDF
FeliciaWangEvoSampetuaHariandja PDF
1) 2)
Business School of Universitas Pelita Harapan, Tangerang, Indonesia
1)
e-mail: evo.hariandja@uph.edu
2)
e-mail: felic_w@hotmail.com
Abstract
In Indonesia, the arising number of many local or international brands in the market can be seen. One of the
major countries that have opened up their way is South Korea, for the example the opening Korean bakery
stores of Tous Les Jours in Indonesia. To communicate about the product offerings to the customers, Tous Les
Jours use their brand ambassador, Kim Soo Hyun as a tool of promoting their brand. The aim of this research is
to see the influence of brand ambassador on brand image and consumer purchasing decision of Tous Les Jours
in Indonesia. There are 3 hypotheses that stated in the beginning of research and to prove the hypotheses, 109
questionnaires are distributed to conduct this research. The questionnaires are tested by Smart-PLS 3 and using
path analysis. The result of this study will show the influence of brand ambassador on brand image and
consumer purchasing behavior of Tous Les in Indonesia and show the effectiveness of Kim Soo Hyun as a
brand ambassador.
1. Introduction
In Indonesia, the arising number of many Coordinating Board (BKPM) in Table 1.
local or international brands in the market South Korea is one of the main countries
can be seen. Indonesia’s consumer-related and placed 7th among the countries who
market opportunities continue to lead invest in Indonesia.
growth in the world’s fourth-largest country,
and expansion in the retail, health, education, Table 1. FDI Inflows by Countries in Indonesia 2014
telecom and financial services sector have Main Investing Countries 2014, in %
boomed in the last few years. The Singapore 20.4
Indonesian consumer is ranked as one of the Japan 9.5
most confident in the world, and 50% of
Malaysia 6.2
Indonesia’s 253 million citizens are under
the age of 30 (export.gov, 2015). The Netherlands 6.1
By taking a closer look to the business UK 5.6
market in Indonesia, many countries have
USA 4.5
been trying to spread their business and
invest in Indonesia. One of the major South Korea 3.9
countries that have opened up their way is Source: BKPM
South Korea. In the past few years, there are
many Korean stores opened up in With the addition of the intensity of
Indonesia’s malls. According to the data Korean Wave in Indonesia, many
provided from Indonesia Investment companies targeted Indonesian people as the
potential buyers for the company. Korean
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International Conference on Entrepreneurship (IConEnt-2016)
“How Innovation could Improve the Performance and Productivity in Entrepreneurship?”
March 17, 2016.
Universitas Pelita Harapan, Tangerang – Indonesia
the awareness. The advertising is not only a There should be certain compatibility
medium to create brand awareness but also between the brand ambassador and the
to give the information or image that a brand personality like celebrity, popularity,
company wants to be perceived by its availability, physical attractiveness and their
customer. That is one of the reasons that the profession in consonance with the product.
company makes a budgeting to advertising It is indispensable that creativity should
expense. Through the increasing underlie while using celebrity endorsement
competition, the advertising is not only the otherwise it may over power and
medium to create the brand image and overshadow the brand popularly known as
perceived value. To promote the sales of vampire effect. Researches tend to show that
their product marketers endeavor to endorse the use of brand ambassador has the most
it through celebrities evoke closer consumer positive effect. According to Greenwood
engagements with the brand under optimal (2012:78) and Royan (2004:8) in Putra,
conditions and drives purchases. These Suharyono and Abdilla (2014), brand
celebrities are popularly named as Brand ambassador was instrumental in helping the
Ambassadors who can be best portrayed as smooth marketing activities both locally and
the representative of the organization, globally.
institution or corporation that well sketches Brand ambassadors or celebrity
the product or services being produced by endorsement will help create a stronger
the company or organization. In the modern emotional connection between a
market, without brand ambassadors it’s brand/company with the consumer so
somewhat difficult to sell the product. For indirectly would build the image of the
brand recall, marketer select right person for product impact on purchasing decisions and
right product at right place so that the brand product usage. The brand ambassadors will
can maintain the stability in the competitive explain the process of the usage of the
world. product and benefits out of it and why
For this case, Tous Les Jours has customers have to buy this product. The
appointed Kim Soo Hyun, one of the most customers perceive the brand as having very
famous celebrity in South Korea, as their superior quality just because it has been
brand ambassador to represents their brand endorsed by their favorite personality and
image. Brand itself is the most valuable based on this customers start that
asset of any firm and promoting the product endorsement as one the indicator of the
through a brand ambassador can enhance superior quality for any other brand. With
brand value or equity which in turn can be the help of the both brand ambassadors and
leveraged through brand extension. Brand the company credibility plays a very
personality also nourishes brands to gain significant role in the attitude of the
market share, command premium price and consumers towards the advertisement and
insulates from discounting brands. brand recall too. But sometime over
Endorsing brands of the products through a popularity of the brand ambassadors may
well-known personality has become very create negative response to the brand. By
prominent these days as they sort out the involving in multiple brand endorsement it
problem of over communication, provides may leads to create huge confusion in
instant recognition and transfers their customers’ minds. The end of using brand
goodwill to the brand. In order to pamper ambassador and enhancing brand image will
the consumer a celebrity is deployed to lead to affect the consumer purchasing
transmit credibility and aspirational values decision towards the brand. Based on the
to a brand in alignment with the product. problems that are formulated above, the
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“How Innovation could Improve the Performance and Productivity in Entrepreneurship?”
March 17, 2016.
Universitas Pelita Harapan, Tangerang – Indonesia
whatever the context is, consumers would searches for alternatives for satisfying the
think better of the brand as long as the brand need.
image is in line with the their self.
2.4. Hypothesis Development
2.3. Consumer Purchasing Decision Singh (2014) stated brand is the most
Consumer purchasing decision is a part of valuable asset of any firm and promoting the
consumer behavior. Consumer behavior can product through a brand ambassador can
be defined as the process and activities enhance brand value or equity which in turn
people engage in when searching for, can be leveraged through brand extension.
selecting, purchasing, using, evaluating and Brand personality also nourishes brands to
disposing of products and services so as to gain market share, command premium price
satisfy their needs and desires (Belch and and insulates from discounting brands.
Belch, 2007). For many products and Endorsing brands of the products through a
services, purchase decisions are the result of well-known personality has become very
a long, detailed process that may include an prominent these days as they sort out the
extensive information search, brand problem of over communication, provides
comparisons and evaluations, and other instant recognition and transfers their
activities. Marketers’ success in influencing goodwill to the brand. Roll (2006) defined
purchase behavior depends in large part on brand image is the picture of the brand in
how well they understand consumer the minds of customers and stakeholders. It
behavior. Marketers need to know the refers to the way customers and
specific needs customers are attempting to stakeholders decode all the signals provided
satisfy and how they translate into purchase by a given product, brand, company, or even
criteria. According to Peter and Donnelly country. The brand image is a result of
(2007), the process by which consumers many external factors of which marketing
make decision to purchase various products communications is just one. Similarly every
and brands is shown in Figure 1. product has an image. The consumer tries to
consume a brand which has the maximum
Need Alternative Alternative fit with his/her own personality/image. The
brand ambassador or celebrity endorser fits
Recognition Search Evaluation
in between these two interactions, where he
tries to bring the image of the product closer
to the expectation of the consumer, by
Post-purchase Purchase
transferring some of the cultural meanings
Evaluation Decision residing in his image to the product
(Rawtani, 2010).
Figure 1.Consumer Decision Making Process To achieve this effectively, value for
the brand has to be created and managers
The starting point of any purchase must have the knowledge and expertise to
decision is a customer need (or problem). exploit this value by developing profitable
Need recognition occurs when an individual brand strategies. Successful celebrity/brand
senses a difference between what he or she partnerships have resulted in significant
perceives to be the ideal versus then actual gains in income for brand owners. The
state of affairs (Blackwell et al, 2007). micro factors such as the need for
The next step is alternative search. Once a interactivity, the degree of control exercised
need is recognized, the individual then by consumers over messages received and
increasing media fragmentation render
296
International Conference on Entrepreneurship (IConEnt-2016)
“How Innovation could Improve the Performance and Productivity in Entrepreneurship?”
March 17, 2016.
Universitas Pelita Harapan, Tangerang – Indonesia
profiles are collected from the estimates should be 0.5 or higher. And also,
questionnaires distributed, which are gender, the value of average variance extracted
age, occupation, visit frequencies, and the (AVE) extracted from each indicator should
source of store’s information. The profile of be ≥ 0.5 to suggest adequate convergence.
respondents will be explained in the Table Table 4 shows the factor loading value of
3. the valid indicators from the pre-test study.
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“How Innovation could Improve the Performance and Productivity in Entrepreneurship?”
March 17, 2016.
Universitas Pelita Harapan, Tangerang – Indonesia
section all ten hypotheses developed in this The value of R square is also necessary to
research will be investigated whether they analyze the result, the variance in the
are supported or not supported. The dependent variables are accounted for by the
hypothesis testing in this research used independent variables is answered through
Structural Equation Model (SEM) with the R square. Brand image has the R square
Smart-PLS 3 software as tools to test the of 0.075 which indicates that the variable of
hypotheses. brand image is 7.5% explained by brand
Table 8. Hypothesis Testing ambassador. While consumer purchasing
Original decision with the R square of 0.455
Regres T-statistic
Hypothesis Sample Result
sion s > 1.65 indicates the variable of perceived
(O)
H1
BA →
0.273 2.716 Supported
commodity uncertainty is 45.5% explained
BI by brand ambassador and brand image.
BA →
H2 0.449 5.202 Supported
CPD
BI 5. Discussion
H3 0.396 4.085 Supported
→CPD The hypothesis testing above showed that
all of the hypotheses in this study are
Hypothesis 1 that stated about “Brand supported. In this section, the reason of the
ambassador positively related with brand hypotheses acceptance would be explained.
image” is supported. The result of Additionally, the result of descriptive
hypothesis testing showed that its original statistics in this research will also be linked
sample value is 0.273, which is positive and to the supported hypotheses. This research
T-statistics value is 2.716, which is greater was done to investigate the influence of
than 1.65. Thus, brand ambassador is proved brand ambassador to brand image and
to positively influenced brand image. consumer purchasing behavior by adopting
Hypothesis 1 is significant and accepted. model from Putra, Suharyono and Abdillah
Hypothesis 2 that stated about “Brand (2014), in which their object of study was
ambassador positively related with korean application, Line, in Asia whereas
consumer purchasing decision” is also the object of study for this research is
supported. Seeing that the original sample korean bakery, Tous Les Jours, in Indonesia.
value is 0.449 and the T-statistics value is Hypothesis 1 that stated about “Brand
5.202, meaning that original sample value is ambassador positively related with brand
positive and T-statistics value is greater than image” is supported. The result of
1.65. Hence, brand ambassador is proved to hypothesis testing showed that its original
positively influence consumer purchasing sample value is 0.273, which is positive and
decision. Hypothesis 2 is significant and T-statistics value is 2.716, which is greater
accepted. than 1.65. Thus, brand ambassador is proved
Hypothesis 3 that stated about “Brand to positively influenced brand image. In this
image positively related with consumer condition, it shows that brand ambassador
purchasing decision” is supported. The Tous Les Jours, Kim Soo Hyun, is
hypothesis testing result showed that the positively impact the brand image of Tous
original sample value of it is 0.396, which is Les Jours. In the variable brand
positive and the T-statistics value is 4.085, ambassador, indicator BA1 referred as “I
which exceed 1.65. So, brand image is can recognize Kim Soo Hyun easily” and
proved to positively influence consumer indicator BA2 referred as “Kim Soo Hyun
purchasing decision. Hypothesis 3 is has a good reputation” both have the same
significant and accepted. and highest mean value which is 3.725,
indicating most of the respondents are agree
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Universitas Pelita Harapan, Tangerang – Indonesia
that Kim Soo Hyun can be recognized easily and indicator BA2 referred as “Kim Soo
and have a good image as a brand Hyun has a good reputation” both have the
ambassador. same and highest mean value which is 3.725,
While, the indicator of brand image, indicating most of the respondents are agree
BI3 referred as “Tous Les Jours has high that Kim Soo Hyun can be recognized easily
quality of products”, has the highest mean and have a good image as a brand
value of 4.156 and indicator BI2 referred ambassador. While indicator of consumer
as “Tous Les Jours has a good brand image” purchasing decision, CPD 4 which referred
has the second highest mean value of 4.055 as “I buy Tous Les Jours’ products because
show that Tous Les has a good brand image of their high quality product”, has the
in Indonesia, with the addition of the fact highest mean value of 3.872, it shows that
that Kim Soo Hyun has been agreed by the many respondents agree that they buy Tous
respondents as a good ambassador, the good Les Jours product because they have high
brand image of Tous Les Jours also has quality product. However, the indicator of
been positively increasing. A being mention CPD 5 which referred as “I buy Tous Les
in the study of Mukherjee (2009) which Jours’ products because I know Kim Soo
shows that consumers report higher Hyun as their brand ambassador” has the
self-brand connections for brands with lowest mean value of 2.560, shows that the
images that are consistent with the image of respondents are neither agree nor disagree
a celebrity that they aspire to be like, that they but the products because of the
particularly in the case when the image of Kim Soo Hyun, the brand ambassador. In
the celebrity and the brand match. Brand this case, we can see that Kim Soo Hyun is
ambassadors or celebrity endorsement not high effectively affecting consumer
effects are moderated by brand symbolism, purchasing decision of Tous Les Jours’
such that brands that communicate consumers in Indonesia. Therefore, we can
something about the user yield stronger see that the brand ambassador of Tous Les
effects than brands that do not. In the case Jours, Kim Soo Hyun, positively related to
of aspirational celebrities, the positive effect consumer purchasing decision.
of image congruency is stronger for those The relationship of brand image and
brands that are perceived to communicate consumer purchasing decision can be seen
something symbolic about the brand’s user in the hypothesis 3. Hypothesis 3 that stated
compared to those brands that do not. In this about “Brand image positively related with
case, Kim Soo Hyun can relate his good consumer purchasing decision” is supported
image to the brand image of Tous Les Jours. and proved that brand image has the effects
We can see that brand ambassador to the consumer purchasing decision. The
positively related to the brand. result of hypothesis testing showed that its
Hypothesis 2 that stated about “Brand original sample value is 0.396, which is
ambassador positively related with positive and T-statistics value is 4.085,
consumer purchasing decision” is supported which is greater than 1.65. The indicator of
and proved that brand ambassador has the brand image, BI3 referred as “Tous Les
effects to the consumer purchasing decision. Jours has high quality of products”, has the
The result of hypothesis testing showed that highest mean value of 4.156, shows that
its original sample value is 0.449, which is respondents are agree that Tous Les Jours
positive and T-statistics value is 5.202, has been producing high quality of products.
which is greater than 1.65. In the variable of While, in the indicator consumer purchasing
brand ambassador, indicator BA1 referred decision, CPD 4 which referred as “I buy
as “I can recognize Kim Soo Hyun easily” Tous Les Jours’ products because of their
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“How Innovation could Improve the Performance and Productivity in Entrepreneurship?”
March 17, 2016.
Universitas Pelita Harapan, Tangerang – Indonesia
high quality product”, has the highest mean Tous Les Jours in Indonesia. From the result
value of 3.872, it shows that many and discussions done in the previous section,
respondents agree that they buy Tous Les some conclusions can be drawn.
Jours product because they have high Firstly, brand ambassador influence
quality product. These indicators show the brand image and consumer purchasing
brand image of Tous Les Jours positively decision. As we can see in the discussion,
related to consumer purchasing decision. all of the 3 hypotheses are supported and
Therefore, from the respondent’s profile has positive impacts toward another variable.
data, we can see that there are more female In Indonesia, the use of brand ambassador
respondents (68.8%) rather than male or brand endorser can be seen easily, many
respondents (31.2%) in this research. It companies are use celebrities as a tool or
indicates that female respondents are being marketing of their brand. Brand
more influenced and attracted to visit Tous ambassador indulges the factors of
Les Jours. The additional reason is female trustworthiness and attractiveness of the
are more influenced by trend. Since Tous brand to the consumers. Consumers in
Les Jours is a bakery stores from Korea, Indonesia believe that brand ambassador
they are more eager to try and visit the store have the influence in encoding the message
than male customer. However, from the of the brand to the perception of the brand
hypotheses above, the respondents chose itself in the consumers’ mind.
Tous Les Jours also because of their high Secondly, brand ambassador itself is
quality products which are important for less effective in affecting consumer
both female and male respondents. In purchasing decision rather than the brand
respondent’s profile data, we can also see image of the brand itself. Consumers agree
that the major customers of Tous Les Jours that the brand image of the brand or
are students (73.4%) and mostly range from company is the major key of their
19-24 years old (87.2%). The main reason purchasing decision. As long as they meet
of this data is because most of Tous Les the needs and wants of the consumer, they
Jours stores are located inside malls which will be considered to purchase the products
are easy to access and near with the location or services of that brand regarding who the
of schools and universities. However, the brand ambassador is.
largest percentage of frequency of visit the Thirdly, in this study, have shown that
stores by most of the respondents is less the effectiveness of Kim Soo Hyun is low in
than once in a month and most of the Indonesia. Many consumers know about the
respondent know about the stores by passing image of Kim Soo Hyun, but in reality, the
by the store (81.5%) rather than know it image of him doesn’t have a major effect to
from other sources such as social media, the majority of consumer mind about the
printed advertising, word of mouth and Tous Les Jours brand image and consumer
other. purchasing decision. Indonesia may has
been influenced by Korean culture, but in
6. Conclusion this case, Tous Les Jours has been proved to
This study has a purpose to investigate and stand up in the market by sustaining their
answer the hypotheses stated in the first brand image.
chapter of this study. It investigated the From the results of hypotheses testing,
influence of brand ambassador on brand firstly it can be seen brand ambassador
image and consumer purchasing decision. positively influence the company’s brand
This research also analyzes the effectiveness image and consumer purchasing decision,
of Kim Soo Hyun as brand ambassador of the use of brand ambassador as a marketing
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Universitas Pelita Harapan, Tangerang – Indonesia
strategy should be increased. With a good up and Indonesia’s potential customers are
image of brand ambassador, it will maintain more open to foreign countries. The
and attract new potential customer. The marketers and the companies also have to be
marketers need to combine the good image responsible for carry their country’s image
of the brand ambassador and brand image of to Indonesia.
the company as their marketing strategy to There are several suggestions given to
enter and sustain in the market. Since there future researchers. Most of the
are so many competitors in Indonesia, the recommendations and suggestions are based
marketers also need to focus on their on research limitations. Future research
marketing strategy such as using social should be applied more samples to conduct
media, printed advertising and commercials this research and more diverse occupation to
to presents and advertise the products and capture better picture for the result of this
the company in Indonesia, not only depends study. Future research should expand this
on passing by the store customers and use study to other country other than Indonesia
the Hallyu Wave to spread about the store. to explore how the differences in culture and
The reasons are because most of the economic development will affect the result.
respondents of this research are from Comparative study about this study topic
passing by the store customers and they are will also be interesting since how people in
rarely know that Tous Les Jours has ever different countries deal with Kim Soo Hyun
used any other marketing strategy. It is very as the brand ambassador and see the
important for companies to be known in the influence of a brand ambassador on brand
market. Companies should be able to create image and consumer purchasing behavior in
a strong position in the market. each country, can be obtained. The model
The marketers and the company need may need to be modified for future
to maintain its high quality products, researches, for instance, by including more
because it is one of the main reasons why variables to be analyzed. Since the
people purchase in their store. The additional variable might provide a better
marketers also need to take a look and insight for the researchers to understand
enhance their service quality, since each variable assessed in this study.
customers will come back and visit the store
for the second time simply because they are
satisfied with the brand. The developments
of variety products are also need. It is also
very important to know the customers of a
brand for the marketers and companies. It
can help the marketers to reach other market
segmentation using promotional tools and
evaluate its effectiveness.
Additionally, Tous Les Jours is one of
the examples of many foreign companies
open in Indonesia, the foreign companies’
marketers are needed to introduce the
culture of the country of origin to be
presented carefully in their store as one of
the marketing skills. With cultural
differences, it will attract more customers in
Indonesia, since the globalization is rising
304
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“How Innovation could Improve the Performance and Productivity in Entrepreneurship?”
March 17, 2016.
Universitas Pelita Harapan, Tangerang – Indonesia
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