ANALYSIS ON PRICE AND QUALITY OF METAL INDUSTRIESTOWARD CUSTOMER DECISION

(A STUDY CASE OF BAKRIE METAL INDSUSTRIES IN BEKASI,JAWA BARAT)

BYPANDU HARDIANSYAHID NO. 014201200105

CHAPTER IINTRODUCTION1.1 Background of the study

PT Bakrie Metal Industries, is a holding company that manages operations of PT Bakrie & Brothers in the field of manufacturing metal / steel, consisting of PT Bakrie Pipe Industries, PT Bakrie Metal Industries - Bekasi Fabrication Unit , PT South East Asia Pipe Industries and PT Bakrie Construction.An extensive international client base, a strong domestic presence and an unquestioned commitment to quality, are trademark of the company's commercial footprint. This has enabled success in the production of a broad mix including steel pipes and fabrications, work class engineering and construction services, corrugated steel, building material and cast iron products. We have continuously upgraded its production capacity and improved quality across all business units in order to conform to international standards and effectively compete in the global market.PT. Bakrie Metal Industries is a company that has been certified for quality management & ISO 9001:2008. The production capacity of PT. Bakrie Metal Industries is 19.200 ton/year, consisting of Nestable Flange, Multi Plate, Guard Rail, Bridge Deck, Steel Fabrication and Steel Bridge. The corrugated steel products of PT. Bakrie Metal Industries have the SNI quality standard. For galvanizing process, its capacity reaches 12.000 ton/year.Beside the good quality, price is the problem why people or buyer still considering to purchase bakrie product. Even though good price provide good quality, its be worth if you sell with maybe little bit expensive than others but you provide high quality. Thats what bakrie did or implemented now. They have a license to prove it and also bakrie is a big name where has been long time move in metal sectors. So, actually people know that as well but there is some problem affected purchasing decision in metal market like impact of the inflation, material and competitor. Bakrie itself have many corporation and loyal customer like Dinas PU (pekerja umum) for bridge and road, PT. Jasa marga , Plantantion (Smart tbk, PT.Asian Agri Group, Salim Ivo group and Bakrie Sumatera Plantantion) and then for Mines (PT.freeport, KPC Kalimantan) there are several company whos using Bakrie Metal product.According to the theory of price (TOP) Xie and Shugan (2000: 230) reveals that consumers are more sensitive in new price comparison than a long time consumers do purchase transaction. This sometimes creates the opportunity to differentiate prices for a new entrant is associated with a very price sensitive.And according to the theory of quality (TOQ) Feigenbaum (1991) the quality of the overall characteristics of the products and services that include marketing, engineering, manufacturing, and maintenance, in which products and services are in use will be in accordance with the needs and expectations of customers.1.2 World-Class MarketingBakrie Metal Industries export-oriented marketing strategy has in recent years yielded results far exceeding the targets set by the Group. With buyers in several countries worldwide, it is clear that the marketing arm of Bakrie Metal Industries has succeeded in communicating a world-class level of quality and competence that is recognized by our overseas customers. Our immediate aim is to achieve a balance that will stimulate further growth and hedge the Group against currency and market fluctuations.

1.3 Human ResourcesBakrie Metal Industries derive strength from the inspiration and dedication of our people and we are motivated by their drive and persistence. A rich multicultural background is what forms the foundation of our corporate culture; and our ability to continuously upgrade and periodically renew our management to a cooperative environment that encourages creativity and innovation. This is in turn is reflected in our superior products and services. Our dedicated employees work together in a team oriented environment that honors dynamism and personal initiatives. Furthermore, a clear and well-articulated productivity measurement system focused on self-assessment has created a workplace where a perpetual quest for excellence is the rule rather than the exception.1.4 Advance TechnologyBakrie Metal Industries is a large consumer of modern technology. Each of our production facilities is equipped with state-of-art manufacturing equipment, computerized QC systems, and automated processes in compliance with international standards. In order to remain at the top of our respective industries-producing and delivering only the most modern products and services, Bakrie Metal Industries is always looking to integrate technological developments that can serve to increase capacity, minimize production time, improve product quality thus creating added value.1.5 Price List and Quality Certificate Of Bakrie Metal Products

Figure 1.1: Price List Nestable Flange

Figure 1.2: Price List Multi Plate Pipe

Figure 1.3: Price List Guard Rail

Figure 1.4: Quality Certificate ISO 9001:2008

1.6 Problem IdentificationBakrie Metal industries (BMI) are the one and only located in Bekasi, jawa barat. There are no other branches around Indonesia. But in bekasi there is Bakrie Pipe Industries (BPI) also and its BMI friends or son branch. BPI focused on pipe production and BMI focused on metal production activities. I think the problem what BMI against now are like appear new competitor and company image. And then talking about Bakrie competitors like PT.Union Metal, PT.Metal Corfix Indonesia, PT.Metal Stamping and etc. Actually Bakrie was lead metal market in Indonesia for a long time until now them maybe as an alternative choice for customer decision. And also Inflation of course gives big impact to this company such as up or down the currency in Indonesia. Value of Rupiah goes down and dollar increase, if the price of materials increase of course cost production will increase. And customer will considering purchasing the product, but insensitive customer never looking for the price as long as that company provide high quality and different for sensitive customer they very selective to purchase a product depends on their budget or money. The high price of materials also following by that inflation, but bakrie metal still use standard material to create their product. They never change the ingredients or deduct the component to get high profit. They still commitment anything should be worth it, we sell high price because we have good quality. Sometimes people need a cheaper price to get more profit, even though they didnt know it does will inflict many people up there. Bakrie wont lies or think for himself, good price have good quality.Also in this research, researcher would like to find out the analysis on price on quality toward customer decision through inflation, materials and competitor in Indonesia.Based on the statement above, the title of this research is Analysis on price and quality of metal industries toward customer decision in Bekasi 1.7 Statement of ProblemSpecifically, this study aims to answer the following question:1. Does Inflation have partial significant relationship toward Purchasing Decision in Bakrie Metal Industries?2. Does Material have partial significant relationship toward Purchasing Decision in Bakrie Metal Industries?3. Does Competitor have partial significant relationship toward Purchasing Decision in Bakrie Metal Industries?4. Does Inflation, Material and Competitor have simultaneous relationship toward Purchasing Decision in Bakrie Metal Industries?1.8 Research Objectives Based on the preceding research questions, the research objectives of the study can be translated as follows:1. To find out that Inflation have partial significant relationship toward Purchasing Decision in Bakrie Metal Industries.2. To find out that Material have partial significant relationship toward Purchasing Decision in Bakrie Metal Industries. 3. To find out that Competitor have partial significant relationship toward Purchasing Decision in Bakrie Metal Industries.4. To find out that Inflation, Material and Competitor simultaneous relationship toward Purchasing Decision in Bakrie Metal Industries.1.9 Significance of study Through this research hopefully could expand knowledge, information, and suggestion for:1. Bakrie Metal Industries: The output of the research would become reference for BMI to keep their performance and implementation that good price good quality. Compete any competitor in field and ensure the people to buy the product.2. Government: As reference for Central government, Bekasi , and West Java government to put more attention with local product and gain better ideas through this research to solve the Metal material market problem in Indonesia.3. Researcher: To find out how strong brand quality of PT.Bakrie Metal with PT. Union Metal and PT.Metal Corfix Indonesia product in around Indonesia and gain more understanding on brand prices and Perceived quality also their impact on the consumer purchasing decision.4. The Future Researcher: The output of the research would become a baseline and additional knowledge to enhance the needs of people who would do future research about the Brand Prices and Brand Quality and their impact on the purchasing decision5. The University: to increase the literatures and studies in field of Brand Price and Quality in Purchasing decision.1.10 Definition of TermsSome terms used in this research are as follows according to Cambridge Advanced Learners Dictionary (2008):1. Brand: a type of product made by a particular company.2. Brand Equity: the set of brand assets and liabilities linked to the brand its name and symbols that add value to, or subtract value form, a product or service.3. Brand Loyalty: the extent to which people are loyal to a brand.4. Competitor: a person, team, or company that is competing against others: Their prices are better than any of their competitors. How many competitors took part in the race?5. Industries: the companies and activities involved in the process of producing goods for sale, especially in a factory or special area.6. Inflation: a general, continuous increase in prices: high/low inflation the rate of inflation7. Loyalty: the quality of being loyal.8. Material: a physical substance that things can be made from: building materials, such as stone Crude oil is used as the raw (= basic) material for making plastics.9. Metal: a chemical element, such as iron or gold, or a mixture of such elements, such as steel, that is generally hard and strong, and through which electricity and heat.10. Perceive: to come to an opinion about something, or have a belief about something.11. Perceived Quality: the extent to which a brand is considered to provide good quality product.12. Price: the amount of money for which something is sold.13. Quality: a characteristic or feature of someone or something.

1.11 Scope and LimitationScopeThe Study is conducted to Analysis on price and Quality of Metal Industries towards Purchasing Decision of Metal. A case study of Metal product in Bekasi, West Java). LimitationThis Study is focused on Indonesian citizen in Bekasi, West Java. Questionnaires are distributed to 20 Metal buyers in Indonesia. The Study will limit on Metal product and this Study only analyzes the impact of this Price and Quality toward purchasing decision (inflation, material and competitor) for Bakrie Metal Industries.

CHAPTER IILiterature Review 2.0Price and Quality TheoryThe Price Theory Initiative supports innovative research that examines behavior through the lens of markets, prices, and incentives. Programs prepare young scholars to work creatively in this productive vein. Faculty research explores topics such as education, marriage, crime and corruption, addiction, health decisions, and political bias and ideological segregation in the media. An important strand of the initiative uses field experiments to understand economic behavior by collecting data in natural settings.Graduate students working with the program also study voting behavior and the impact of social norms on environmental behavior.Chicago Price Theory holds the idea that economic tools provide apowerful analysis that can explain what is going on in the world; therange of topics is diverse and virtually limitless. Steven Levitt, DirectorQuality theory, according to Josep Juran means that a product meets customer needs leading to customer satisfaction, and quality also means all the activities in which a business engages in to ensure that the product meets customer needs. You can think of this second aspect of quality as quality control - ensuring a quality manufacturing process.2.1 InflationIn economics, inflation is a sustained increase in the general price level of goods and services in an economy over a period of time. When the general price level rises, each unit of currency buys fewer goods and services. Consequently, inflation reflects a reduction in the purchasing power per unit of money a loss of real value in the medium of exchange and unit of account within the economy. A chief measure of price inflation is the inflation rate, the annualized percentage change in a general price index (normally the consumer price index) over time. Inflation affects an economy in various ways, both positive and negative. Negative effects of inflation include an increase in the opportunity cost of holding money, uncertainty over future inflation which may discourage investment and savings, and if inflation were rapid enough, shortages of goods as consumers begin hoarding out of concern that prices will increase in the future. Positive effects include ensuring that central banks can adjust real interest rates (to mitigate recessions) and encouraging investment in non-monetary capital projects.2.1.1 Inflation Relationship toward Customer DecisionThere are different schools of thought as to what causes inflation. Most can be divided into two broad areas: quality theories of inflation, and quantity theories of inflation. Many theories of inflation combine the two. The quality theory of inflation rests on the expectation of a buyer accepting currency to be able to exchange that currency at a later time for goods that are desirable as a buyer. The quantity theory of inflation rests on the equation of the money supply, its velocity, and exchanges. Adam Smith and David Hume proposed a quantity theory of inflation for money, and a quality theory of inflation for production. Keynesian economic theory proposes that money is transparent to real forces in the economy, and that visible inflation is the result of pressures in the economy expressing themselves in prices. Customer will considering to purchase a goods based on the global economic, value of rupiah decrease and other side value of dollar increase its make many company will increase their product price because the material cost maybe import from Europe or US so expensive meanwhile the product price actually not too expensive in market. The company of course wont loss, and the other side as a customer looking for this very carefully to purchase a product. They prefer to choose the cheaper one than the product they usually buy. There are three major types of inflation, as part of what Robert J. Gordon calls the "triangle model":1. Demands pull inflation: inflation from high demand for goods and low unemployment.2. Cost push inflation: presently termed "supply shock inflation," from an event such as a sudden decrease in the supply of oil, which would increase oil prices. Producers for whom oil is a part of their costs could then pass this on to consumers in the form of increased prices.3. Built-in inflation: induced by adaptive expectations, often linked to the "price/wage spiral" because it involves workers trying to keep their wages up with prices and then employers passing higher costs on to consumers as higher prices as part of a "vicious circle." Built-in inflation reflects events in the past, and so might be seen as hangover inflation.2.1.2 Materials The material or materials are substances or objects from which something can be made of it, or the stuff it takes to make something. The material is sometimes used to refer to clothing or fabric. The material is an input in the production. They often are the raw materials which have not been processed, but on occasion have been processed before being used for further production processes. Generally, in a society of advanced technology, materials are the ingredients that consumers haven't finished. Some examples are paper, silk and iron seed.

Material engineering is the kind of material that is widely used in process engineering and industry. Engineering materials are grouped into 6 groups, there are:1. Metal: steel, cast iron, titanium, metal alloys, etc.2. Polietilan: polymer, polypropylene, polycarbonate, etc.3. Rubber: isoprene, neoprene, natural rubber, etc.4. Glass: glass of soda, silica glass, borosilicate glass5. Ceramics: alumina, Silicon nitride, silicon carbide, etc.6. Hybrid: composite, foam, sandwich

2.1.3 Material Relationship toward Customer DecisionChoosing a Material is the important one before we buy a product, a good material of course will make a good product. Moreover for manufacturing product component for build a house, college, bridge, road and etc. its very important to select what kind type or specs we need to build a building. Not all material suitable for any construction, they are having strength and weaknesses depend on for you building condition. People should know well about the material before build it, good customers know what kind product or material they need.

For example: How to choose a good and light steel trueWhat is the brand used to be seen? If the manufacturer of the well-known or less known for brands usually affects the quality of the light steel. Held like where the rate of elasticity is neither too supple nor too harsh? Mild steel which is nice not too hard and not too flexible.See how its thickness? for standard thickness: 0.75 mm for mild steel which is nice for sure in each stem there is production date stamp and stamp the SNI (standard National Indonesia) buy lest not there licenses wellBecause we cannot identify whether the correct light steel thickness 0.75 0.65 or if there is any right rod in that stamp we are not hard-hard-to measure the thickness of the steel with micro meter gauges.Ask the right kind of mild steel because there are 2 types of lightweight steel Galvanize and Zincalume steel which is yet to be great are the best composition because Zincalume with a mix of 55% aluminum 43.5% zinc and 1% is silicon.

2.1.4 Competitor Merriam-Webster defines competition in business as "the effort of two or more parties acting independently to secure the business of a third party by offering the most favorable terms". It was described by Adam Smith in The Wealth of Nations (1776) and later economists as allocating productive resources to their most highly valued uses and encouraging efficiency. Later microeconomic theory distinguished between perfect competition and imperfect competition, concluding that no system of resource allocation is more efficient than perfect competition. Competition, according to the theory, causes commercial firms to develop new products, services and technologies, which would give consumers greater selection and better products. The greater selection typically causes lower prices for the products, compared to what the price would be if there was no competition (monopoly) or little competition (oligopoly).However, competition may also lead to wasted (duplicated) effort and to increased costs (and prices) in some circumstances. For example, the intense competition for the small number of top jobs in music and movie acting leads many aspiring musicians and actors to make substantial investments in training which are not recouped, because only a fraction become successful. Critics have also argued that competition can be destabilizing, particularly competition between certain financial institutions. Experts have also questioned the constructiveness of competition in profitability. It has been argued that competition-oriented objectives are counterproductive to raising revenues and profitability because they limit the options of strategies for firms as well as their ability to offer innovative responses to changes in the market. In addition, the strong desire to defeat rival firms with competitive prices has the strong possibility of causing price wars.2.1.5 Competitor Relation toward Customer DecisionCompetitors are companies that produce or sell goods and services on the same or similar to the products offered. The quality of human beings will increase due to healthy competition. Human competitors are people who are consciously practicing and working hard to compete and it's competition. Uncontrolled competition in a positive way will cause the split even war that created a lot of good soul sacrifice as well as treasure. Many of the teachings and spiritual values that teaches people to live peacefully and get along well without creating adverse violence, but human history has been recorded, that man is the creator of human violence and have the character to build and destroy. The competition has created the ego and self-resilience to survive in this harsh life. Seems to identify competitors is a task of the company is simple. However the scope of actual and potential competitors the company is actually much broader. The company is more likely to be defeated by rivals or by emerging new technologies, compared by its competitors at this time. In the world of competition, the main task of the entrepreneur is to hook customers as much as possible, both new customers and old customers, and also how do I turn off the pace of the development of competition. Thus, in running a competitive company strategy, a businessman is expected to continually learn and monitor the movements of each competitor.Some things to note from the competition:1. The completeness of the quality, design and product form2. The price offered3. Distribution channels or branch locations are owned4. Promotions that run5. Plan activities ahead of competitors

2.1.5Customer Decision Process Theory In an early study of the buyer decision process literature, Frank Nicosia (Nicosia, F. 1966; pp 921) identified three types of buyer decision making models. They are the univariate model (He called it the "simple scheme".) in which only one behavioral determinant was allowed in a stimulus-response type of relationship; the multi-variate model (He called it a "reduced form scheme".) in which numerous independent variables were assumed to determine buyer behavior; and finally the "system of equations" model (He called it a "structural scheme" or "process scheme".) in which numerous functional relations (either univariate or multi-variate) interact in a complex system of equations. He concluded that only this third type of model is capable of expressing the complexity of buyer decision processes. In chapter 7, Nicosia builds a comprehensive model involving five modules. The encoding module includes determinants like "attributes of the brand", "environmental factors", "consumer's attributes", "attributes of the organization", and "attributes of the message". Other modules in the system include consumer decoding, search and evaluation, decision, and consumption.

2.2 Theoretical FrameworkINFLATION (X1)

(

H1H2CUSTOMER DECISION (Y)MATERIALS (X2)

H3COMPETITOR (X3)

H4Figure 2.1: Theoretical FrameworkFigure 2.1 illustrates the process of Price and Quality through Inflations, Materials and Competitor on customer decision in Bekasi, west java. Price and Quality through Inflation, Materials and Competitor acted as Independent Variable influences Customer Decision as Dependent Variable.2.3HypothesisH1o: There is no partial significant relation between Inflation and Customer Decision.H1a: There is a partial significant relation between Inflation and Customer Decision.

H2o: There is no partial significant relation between Materials and Customer Decision.H2a: There is a partial significant relation between Materials and Customer Decision.

H3o: There is no partial significant relation between Competitor and Customer Decision.H3a: There is a partial significant relation between Competitor and Customer Decision.

H4o: There is no simultaneous relation between Inflation, Materials, and Competitor towards Customer Decision.H4a: There is a simultaneous relation between Inflation, Materials, and Competitor towards Customer Decision.

Chapter IIIRESEARCH METHODOLOGY

3.1Research DesignThere are two methods in doing scientific research those are qualitative and quantitative research. The differences between qualitative and quantitative research are the type of data, research process, instrument in collecting data and the purpose of research.1. Qualitative method usually gathered by observations, interviews or focus groups and the data also is gathered from written documents and through case studies, it less emphasis on counting numbers of people who think or behave in certain ways and more emphasis on explaining why people think and behave in certain ways.2. Quantitative method involves smaller numbers of respondents, Utilizes open-ended questionnaires or protocols, Best used to answer how and why questions. (Civicpartnership.org ,2013)

Quantitative observations are made using scientific tools and measurements. The results can be measured or counted, and any other person trying to quantitatively assess the same situation should end up with the same results. In Quantitative method pieces of information that can be counted mathematically, it usually gathered by surveys from large numbers of respondents selected randomly and it is analyzed using statistical methods Best used to answer what, when and who questions (Civicpartnership.org,2013). The researcher use quantitative method in conducting research.Multiple Regressions analysis is an extension of simple linear regression. It is used when we want to predict the value of a variable based on the value of two or more other variables. The variable to be predicted is called the dependent variable (or sometimes, the outcome, target or criterion variable). The variables that used to predict the value of the dependent variable are called the independent variables (or sometimes, the predictor, explanatory or regress or variables) (statistics.laerd.com, 2013).Therefore, this study uses the quantitative method with Factor Analysis and Multiple regressions Analysis to answer the research questions.

3.2Research FrameworkThe main topic of this research is Analysis on Price and Quality of Metal Industries toward customer decision. As described in Chapter 2, Price and Quality is the most valuable asset that a company has, and it creates value for customers and firms. Therefore, Inflation, materials and competitor affect the purchase decision.

This research specifically analysis on price and quality of metal industries, in bekasi. Before conducting this research, the researcher had to collect data containing the total number of Metal Industries Company directly from the 20 metal customers, in bekasi.

After collecting the data, the researcher directly proceeded to the problem identification. From the data obtained, Bakrie Metal is already famous for a long time ago. This encouraged the researchers curiosity to find out why it could happen. After reading some supporting passages from journals and articles, it could be identified that price and quality affect the customer purchase decision. Furthermore, the problem statement was constructed as the basic view of the topic. To support the problem statement, theories and opinions are explored. All those findings are expressed in Chapter 2 of Literature Review. This then brings benefits to the construction of the questionnaires.

Questionnaires were checked for validity and reliability test. Pearson correlation matrix used to measure the validity and Cronbach Alpha used to measure the reliability of the questionnaire. Pearson correlation matrix will indicate the direction, strength, and significance of the bivariate relationships among all the variables that were measured at an interval or ratio level (Sekaran and Bougie, 2010, pp.321). Cronbach Alpha is a reliability coefficient that shows how well the items in a set are positively correlated to one another (Sekaran and Bougie, 2010, pp.324).

Before being spread, the questionnaires went through the stage of Tryout. Twenty different people were selected and gathered by the researcher to examine whether the statements in the questionnaires were clear enough to understand. This stage is also intended to revise some statements, so that every respondent will have the same perception towards them. After some reviews and proof readings, the questionnaires were finally spread to 20 respondents whose characteristics have been provided in one of the explanations below.

In this research, SPSS was utilized to analyze the data. Finally, the points of conclusion and recommendation are drafted. All steps conducted by the researcher from problem identification to the result accomplishment are reflected in the following figure of research framework.

Price List and Quality Certificate of Bakrie Metal ProductProblem Identification and Problem StatementLiterature ReviewConstruct QuestionnairePre-test Questionnaire: Validity and Reliability Test and Dry RunData CollectionData Analysis and InterpretationConclusion and Recommendation

Figure 3.1: Research Framework Constructed by Researcher

3.3Research InstrumentResearch Instrument is the tool that used to answer the research questions that stated in the previous chapter. The Researcher intention is to gather the information from as much various sources. Data can be obtained from primary or secondary data, Primary data refers to information obtained first-hand by the researcher on the variables of interest for specific purpose of the study and secondary data refer to information gathered from sources that already exist (Sekaran, Bougie, 2010). In order to fulfill the validity of this research, the researcher use both primary and secondary data as shown in the figure 3.2 below:RESEARCHDATA COLLECTIONPRIMARY DATASECONDARY DATASURVEYBOOKS AND JOURNALS LITERATURE STUDY ARTICLES ON INTERNETDATA SELECTION

Figure 3.2: Data Collection Method 3.3.1Primary DataPrimary data is the specific information collected by the person who is doing the research. It can be obtained through clinical trials, case studies, true experiments and randomized controlled studies. This information can be analyzed by other experts who may decide to test the validity of the data by repeating the same experiments (Ehow.com, 2013). Primary data in this research of Analysis on Price and Quality of Metal Industries toward customer decision in Bekasi, study case on Bakrie Metal industries) is obtained directly from the questionnaires that used for survey. Questionnaires are a technique of data collection done by giving series of written statements that are consists of research variables. These questionnaires will be spread to the numbers of samples.3.3.2Secondary DataSecondary data is information gathered for purposes other than the completion of a research project and Secondary data is also used to gain initial insight into the research problem (steppingstones.ca, 2013). Secondary data is the data that have been already collected by and readily available from other sources. Such data are cheaper and more quickly obtainable than the primary data and also may be available when primary data cannot be obtained at all (managementstudyguide.com, 2013).Secondary data on this research is the literature studies. A literature studies is a technique of data collection based on information gathered from books and journals related to the research discussion. Data collected by learning and selecting from previous literature studies, books, journals and related websites.3.4Sampling DesignSampling Design is part of statistical methodology that related in taking a portion of the population. If a sampling is done correctly, statistical analysis can be used to generalize a whole population. There are two major types of sampling design: probability and nonprobability sampling. In probability sampling, the elements in the population have some known non-zero chance or probability of being selected as sample subjects. In non-probability sampling, the elements do not have a known or predetermined chance of being selected as subjects (Sekaran, Bougie, 2010). 3.4.1PopulationPopulation is all elements, individuals, or units that meet the selection criteria for a group to be studied (businessdictionary.com, 2013). The Population refers to the entire group of people, events, or things of interest that the researcher wishes to investigate (Sekaran, Bougie, 2010, pp. 262). In this study, research population is focused on people in Bekasi who are Bakrie metal costumers and had ever purchase the Bakrie Metal. 3.4.2SampleSample is a subset of population (Sekaran, Bougie, 2010, pp. 263). Sample on this research will be used to investigate the research problems. This Research will use the probability sampling. Unrestricted sampling design in Probability sampling is more commonly known as simple random sampling; every element in the population has a known equal chance of being selected as a subject.n = 20Thus, researcher takes 20 samples in this research by using the method of simple random sampling. Questionnaires then are distributed to 20 Bakrie Metal consumers in indonesia, especially around Bekasi , West java.

3.5Statistical TreatmentThere are 3 (three) statistical tools used in this study, which are Likert Scale, Weighted Mean, and Standard Deviation.3.5.1Likert ScaleThe Likert scale is designed to examine how strongly subjects agree or disagree with statements on a five-point scale with the following anchors (Sekaran, Bougie, 2010):

Figure 3.3: Likert Scale(Source: Sekaran, Bougie, 2010)The Questionnaire uses Likert Scale and all statements that express either a favorable and unfavorable attitude will be scaled through Strongly Disagree, Disagree, Neither Agree Nor Disagree, Agree, and Strongly Agree.The figure of the questionnaire is shown below:No.Statements12345

1

2

3

4

5

Figure 3.4: Likert Scale Questionnaire(Source: Self Developed)

Note:1. For Strongly Disagree2. For Disagree3. For Neutral4. For Agree5. For Strongly AgreeEach of the five responses would have a numerical value which would be used to measure the attitude under investigation.Likert Scales have the advantage that they do not expect a simple yes / no answer from the respondent, but rather allow for degrees of opinion, and even no opinion at all. Therefore quantitative data is obtained, which means that the data can be analyzed with relative ease.The Validity and Reliability testing must be done before the questionnaire spreads to the respondents. Pre testing is conducted to check if the statements are proper as research instrument.3.5.2Weighted Mean Arithmetic mean computed by considering relative importance of each items is called weighted mean. To give due importance to each item under consideration, numbers called weight to each item in proportion to its relative importance. Weighted Mean is computed by using following formula (Emathzone.com, 2013):

Which means :

Where: = Weighted Mean of the factors related W= Corresponding Weight X = A set of number designated / rate of importance

3.5.3 Standard DeviationThe Standard Deviation is a measure of how spreads out numbers are. Standard Deviation is used when data is drawn from a larger set chemistry.about.com (2013).

The sample standard deviation is used when a sample of data is analyzed. In this equation:s = sample standard deviationN = number of scores in a sampleN-1 = degrees of freedom or Bessel's correctionx = value of a samplex bar = mean or average of the sample3.6Data Analysis

In analyzing the data obtained, the researcher uses two major programs that are statistic-related. The first program that the researcher uses is Microsoft Excel. The employment of this program is intended to tabulate the data obtained from questionnaires distribution. It simplifies the researcher to analyze the data.

The second program is Statistical Package for Social Science (SPSS). SPSS is commonly utilized by researchers to quantitatively examine the data obtained from questionnaires distribution. It has been recognized to be helpful to investigate statistical data. SPSS in this research was used to analyze reliability, validity, weighted mean, factor analysis, classic assumption and multiple linear regression analysis.

3.7 Reliability and Validity3.7.1 Reliability TestThe first requirement of a good instrument was reliability. The Reliability test of a measure indicates the extent to which it is without bias (error free) and hence ensures consistent measurement across the time and across the various items in the instrument. In other words, the reliability of a measure is an indication of the stability and consistency with which the instruments measures the concept and helps to assess the goodness of measure (Sekaran, Bougie, 2010). Accurate questionnaire may deflect the right question which is means when the question is asked for several times, the interpretation would be the same from one respondent to another.Measurement of Reliability (Internal-Consistency) in this research will use the Cronbachs Alpha Coefficient; the equation is (Janzengroup.net, 2013):

Where, k = number of items r = average correlation between any two items = reliability of the average or sumCronbach's alphaInternal consistency

0.9Excellent

0.8 < 0.9Good

0.7 < 0.8Acceptable

0.6 < 0.7Questionable

0.5 < 0.6Poor

< 0.5Unacceptable

3.7.2 Validity TestingThe purpose of validity testing is to eliminate the proper question that will answer the research objectives. The Pearson product-moment correlation coefficient (or Pearson correlation coefficient for short) is a measure of the strength of a linear association between two variables and is denoted by r. Basically, a Pearson product-moment correlation attempts to draw a line of best fit through the data of two variables, and the Pearson correlation coefficient, r, indicates how far away all these data points are to this line of best fit (how well the data points fit this new model/line of best fit) (Statistic.laerd.com ,2013). The valid data is a representative statement of variables that are ready to spread to the respondents.In Pearson Correlations, results are between -1 and 1. A result of -1 means that there is a perfect negative correlation between the two values at all, while a result of 1 means that there is a perfect positive correlation between the two variables. A result of 0, on the other hand, means that there is no linear relationship between the two variables. Most research will very rarely get a correlation of 0, -1 or 1. Result would be somewhere in between. The closer the value of r gets to zero, the greater the variation the data points are around the line of best fit.The Quantitative interpretation of the degree of linear relationship existing is shown in the following range of values.1.00perfect Positive (negative) correlation 0.91 - 0.99very high positive (negative) correlation 0.71 - 0.90high Positive (negative) correlation 0.51 - 0.70moderately positive (negative) correlation 0.31 - 0.50low positive (negative) correlation 0.01 - 0.30negligible positive (negative) correlation0.0 no correlation

Correlation r formula:For any two variables, X and Y, the correlation coefficient between them is given by the formula:

Where n = number pair of scores= sum of the products of pair scores = sum of x scores = sum of y scores = sum of squared x scores = sum of squared y scoresThe first requirement of a good instrument was validity. Thus, the researcher chooses Pearson Product Moment Correlation by using the software SPSS 16.0 to fulfill the requirement of the instruments validity.3.8 Classic Assumption TestClassical assumption is the statistical requirements that must be met in multiple linear regression analysis (hellomgz.blogspot.com, 2013). In order to use multiple regression models, classic assumption test need to implement such as normality testing, heteroscedascity testing and multicollinearity.Normality Test used to test the independent variable(X) and the dependent variable(Y) on the resulting regression equation, whether normally distributed or not distributed normally. Normality Tests performed using the test chart Histogram and P-P plots to test the regression model residuals (dawaisimfoni.wordpress.com, 2013).Heteroscedasticity Test generates chart patterns point spread (scatterplot). In a multiple regression equation, it is needed to be tested for the same or not the variance of the residuals of the observations with other observations. If there residuals have the same variance, it is called homo scedascity. And if the residuals have the difference variance, it is called heteroscedascity (dawaisimfoni.wordpress.com, 2013).Multiple regressions equation is good if there is no heteroscedasticity.Analysis of heteroscedasticity assumption SPSS output through the scatterplot graph between Z prediction (ZPRED) for the independent variable (X axis = Y outcome prediction), and residual value (SRESID) is the dependent variable (Y-axis = Y predicted - Y rill).

Multi collinearity test aims to test whether the regression model found a correlation between the independent variables. Good Regression model should not have correlation between independent variables (dawaisimfoni.wordpress.com, 2013). Dawaisimfoni.wordpress.com (2013) added that Multi collinearity occurs when the coefficient of correlation between independent variables is greater than0.60. And multi collinearity occurs when the VIF value is more than 10 and tolerance values less than 0.1.3.9 Multiple Regression AnalysisMultiple regressions are a statistical tool used to derive the value of a criterion from several other independent, or predictor, variables. It is the simultaneous combination of multiple factors to assess how and to what extent they affect a certain outcome (technopedia.com, 2013).Multiple regressions are a statistical method used to examine the relationship between one dependent variable Y and one or more independent variables Xi. The regression parameters or coefficients bi in the regression equation are estimated using the method of least squares (medcalc.org, 2013):

There are 3 steps in doing Multiple Regression Analysis such as T-test, F-test and coefficient of determination (R):T-test for the partial regression coefficient is intended to determine how far the influence of one variable independent (perceived quality, brand awareness, brand associations, and brand loyalty) individually in explaining the dependent variable (purchase decision).F-Test is also used to determine the influence of perceived quality, brand awareness, brand associations, brand loyalty together on purchase decision. If F value > F table, Ho rejected and Ha accepted. Oppositely, if F value < F table, then Ho accepted and Ha rejected.The coefficient of determination (R) was essentially measures how much the ability of the model to explain the variations dependent variable. The coefficient of determination is between zero and one.3.10 LimitationsResearcher makes some limitations because of several reasons related to this study, such as:

1. The researcher finds it difficult to manage the questionnaires distribution. Some of them respond really fast; but in some cases, they become so ignorant and never return the questionnaires. In the end, the researcher has to find other respondents which activity has wasted lots of time already.2. The Researcher finds it is hard to get the data of Price List and Quality certificate, because the company only open price for the customer order not open for foreign people like me.3. Another problem also arises in this study when it is time to gather the secondary data in terms of literature review. Even though Adam Kurniawan Library of President University has a wide-range collection of books, it is quite tough for the researcher to find good and updated management literatures. Consequently, the researcher has to find them in other universities library to support the references.