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i ANALYSIS OF FUNCTIONAL AND EMOTIONAL VALUE TOWARDS CONSUMER DECISION TO USE SOCIAL BUSINESS PLATFORM “BOSCH CONNECT” AS INTERNAL COMMUNICATION PLATFORM AT ROBERT BOSCH GMBH (CASE STUDY: CI MARKETING DEPARTMENT) IDA ROSYIDAH 1113081100016 MANAGEMENT DEPARTMENT INTERNATIONAL CLASS PROGRAM THE FACULTY OF ECONOMIC AND BUSINESS STATE ISLAMIC UNIVERSITY SYARIF HIDAYTULLAH JAKARTA 1438 H / 2017

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ANALYSIS OF FUNCTIONAL AND EMOTIONAL VALUE TOWARDS

CONSUMER DECISION TO USE SOCIAL BUSINESS PLATFORM

“BOSCH CONNECT” AS INTERNAL COMMUNICATION PLATFORM

AT ROBERT BOSCH GMBH

(CASE STUDY: CI MARKETING DEPARTMENT)

IDA ROSYIDAH

1113081100016

MANAGEMENT DEPARTMENT

INTERNATIONAL CLASS PROGRAM

THE FACULTY OF ECONOMIC AND BUSINESS

STATE ISLAMIC UNIVERSITY SYARIF HIDAYTULLAH JAKARTA

1438 H / 2017

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CURRICULUM VITAE

Personal Identities

Name : Ida Rosyidah

Gender : Female

Place of Birth : Jakarta

Date of Birth : July 11th 1995

Address : Tanah Merdeka VII Street Rt04/06 no 66 East Jakarta

Email Address : [email protected]

Formal Education

College : UIN Syarif Hidayatullah Jakarta

: FHWS Germany

Senior High School : MAN 2 Jakarta

Junior High School : SMPN 20 jakarta

Elementary School : MI Attahiriyah Jakarta

Kindergarten : TK Suci Jakarta

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ANALYSIS OF FUNCTIONAL AND EMOTIONAL VALUE TOWARDS

CONSUMER DECISION TO USE SOCIAL BUSINESS PLATFORM

“BOSCH CONNECT” AS INTERNAL COMMUNICATION PLATFORM

AT ROBERT BOSCH GMBH

(CASE STUDY: CI MARKETING DEPARTMENT)

ABSTRACT

This study aims to determine whether functional and emotional value

influence consumer decisions to use social business bosch connect. Data that have

been used for this study are primary and secondary data and have been collected

from 70 respondents who are Bosch employees at CI marketing department and

can be assumed they have same knowledge of social business bosch connect. Data

analysis used multiple regression analysis method in SPSS 26.0 for windows. The

result shows that functional value partially no significant influence to consumer

decision to use social business bosch connect, and emotional value partially

positive and significant influence. The result of coefficient of determination also

show if functional and emotional value 59.5% influence to consumer decision to

use social business bosch connect. While the rest can be explain by other variables

that have not been included in this study.

Keywords: Functional Value, Emotional Value, Consumer Decision, Social

Business, Bosch Connect, Transparency, Internal Marketing.

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ANALISIS NILAI FUNGSIONAL DAN EMOSIONAL TERHADAP

KEPUTUSAN KONSUMEN UNTUK MENGGUNAKAN PLATFORM

SOSIAL BISNIS "BOSCH CONNECT" SEBAGAI ALAT KOMUNIKASI

INTERNAL DI ROBERT BOSCH GMBH

(STUDI KASUS: CI MARKETING DEPARTMENT)

ABSTRAK

Penelitian ini bertujuan untuk mnegetahui apakah adanya pengaruh dari

nilai fungsional dan nilai emosional terhadap keputusan konsumen untuk

menggunakan sosial bisnis bosch connect. Data yang telah digunalan untuk

penelitian ini adalah data primer dan sekunder dan telah dikumpulkan dari 70

responden yang terdiri dari para pegawai di department CI markeing dan memiliki

pengetahuan yang sama terhadap sosial bisnis bosch connect. Analisis data

menggunakan metode analisis regresi berganda pada SPSS 26.0 for windows.

Hasilnya menunjukan bahwa nilai fungsional sebagian tidak berpengaruh

signifikan terhadap keputusan konsumen untuk menggunakan sosial business

bosch connect, dan nilai emosional sebagian berpengaruh positif dan signifikan.

Hasil dari koefisien determinasi menunjukan bahwa fungsional dan emosional

59.5% berpengaruh terhadap keputusan konsumen untuk menggunakan sosial

bisnis bosch connect. Sedangkan sisanya dapat dijelaskan oleh variabel lain yang

belum termasuk dalam penelitian ini.

Kata Kunci: Nilai Fungsional, Nilai Emosional, Keputusan Konsumen, Sosial

Bisnis, Bosch Connect, Transparansi, Pemasaran Internal.

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PREFACE

Assalammu’alaikum Wr. Wb.

All praise to Allah SWT, the Most Gracious and the Most Merciful, the

Cherisher and Sustainer of the worlds who always gives the writer all the best of

this life and there is no doubt about it. Shalawat and Salaam to the Prophet

Muhammad SAW and his family. With blessing and mercy from Allah SWT, the

writer can complete this thesis to fulfill one of the requirements to accomplish

bachelor degree in UIN Syarif Hidayatullah Jakarta.

In this opportunity, the writer would like to take this opportunity to express my

deep and sincere gratitude to the following:

1. Beloved parents, Ayah Ahmad Mursyidi S.Pdi and Ibu Masanih S.Pdi that

have given all their efforts morally and material for my college study. Thank

you for your love and prayers that never end. All my efforts is dedicated to

you my Ayah and Ibu. May Allah SWT always blessing both of you.

2. Dr. M. Arief Mufraini, Lc., M.Si as Dean of Economic and Business Faculty

3. Dr. Amilin, SE., Ak., M.Si., CA, QIA., BKP as Vice Dean of Economic and

Business Faculty

4. Titi Dewi Warninda, SE., M.Si as Head of Management in Economic and

Business Faculty

5. Cut Erika Ananda Fatimah, MBA as my supervisor who always support and

advice me. By her advice, direction and guidance I can write this thesis

properly. Thank you very much for your time and kindness to help me to

finish this thesis.

6. Tanja Rauscher as my supervisor at Robert Bosch who always support and

cheer me up during my research in Germany.

7. All the staffs in Economic and Business Faculty. Especially Mr. Bonyx who

always helps me in every situation.

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8. All the staffs in CI MKT3 who always support and accompany me.

9. All my dear friends in Management International Program 2013.

10. The last but not least, for my beloved sister Nabielah Barokah who always

cheer me up in every situation. I love you bil!

The writer realizes that this thesis is still far from perfection due to limited

resources and knowledge of the writer. All the suggestions and constructive

criticism are welcome in order to make this thesis better. Hope, this thesis will be

useful for any researcher or reader. May Allah SWT always bless every step in

our life.

Wassalamu’alaikum Wr. Wb

Jakarta,May 2017

Ida Rosyidah

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TABLE OF CONTENTS

Curriculum Vitae .................................................................................................................. vi

Abstract ............................................................................................................................... vii

Abstrak ................................................................................................................................ viii

Preface ................................................................................................................................. ix

Table of Contents ................................................................................................................. xi

List of Tables ........................................................................................................................ xv

List of Figures ...................................................................................................................... xvi

List of Appendix .................................................................................................................. xvii

Chapter I INTRODUCTION

A. Background ............................................................................................. 1

B. Problem Definition .................................................................................. 5

C. Purpose of This Research ....................................................................... 5

D. Benefit of This Research ......................................................................... 5

Chapter II LITERATURE REVIEW

A. Theoretical Foundation .......................................................................... 7

1. Marketing Communication .............................................................. 7

2. Internal Marketing .......................................................................... 9

3. Social Media ................................................................................... 12

4. Social Business................................................................................ 16

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5. Consumption Value ....................................................................... 18

6. Consumer Decision ........................................................................ 22

B. Previous Research ................................................................................ 25

C. Relationship between Variable ............................................................ 30

D. Conceptual Framework ........................................................................ 32

E. Hypothesis ............................................................................................ 34

Chapter III RESEARCH METODOLOGY

A. Scope of Research ................................................................................ 35

B. Sampling Method ................................................................................. 35

C. Collection of Data ................................................................................. 36

1. Primary Research .......................................................................... 36

2. Secondary Research ....................................................................... 37

D. Data Analysis Method ........................................................................... 38

1. Data Quality Test ........................................................................... 38

a. Validity Test ............................................................................ 38

b. Reliability Test ........................................................................ 39

2. Classic Assumption Test ................................................................ 40

a. Normality Test ......................................................................... 40

b. Multicollinearity test ............................................................... 41

c. Heteroscedasticity Test ........................................................... 41

3. Hypothesis Test ............................................................................. 42

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a. T-Test Statistics ...................................................................... 42

b. F-Test Statistics ....................................................................... 42

4. Multiple Linear Regression ............................................................ 43

5. Coefficient of Determination (R2) .................................................. 44

D. Variable Research Operation ................................................................ 45

Chapter IV Analysis and result

A. General Description of Research Objects ............................................. 50 1. Robert Bosch GmbH 50

a. CI Department Community ..................................................... 50

b. CI Vision .................................................................................. 51

2. Bosch Connect ................................................................................ 51

a. Function of Bosch Connect ..................................................... 53

1) Community .......................................................................... 53

2) Forum .................................................................................. 54

3) Wiki ..................................................................................... 54

4) Blog ..................................................................................... 55

5) Event ................................................................................... 55

6) Metrics ................................................................................ 56

B. Result and Discussion ........................................................................... 57

1. Respondents Characteristic ........................................................... 57

2. Descriptive Analysis ........................................................................ 60

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3. Data Quality Test Results .............................................................. 64

a. Validity Test Results ................................................................ 64

b. Reliability Test Results ............................................................ 66

4. Test Results of Classic Assumption ................................................ 67

5. Hypothesis Test Results.................................................................. 73

6. Multiple Linier Regression Test ..................................................... 75

7. Analysis .......................................................................................... 78

Chapter V CONCLUSION AND SUGGESTION

A. Conclusion ............................................................................................. 79

B. Suggestion ............................................................................................. 79

C. Limitations and Recommendation ....................................................... 82

REFERENCES .............................................................................................................................

APPENDIX .................................................................................................................................

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LIST OF TABLES

No. Description

2.1 Internal communication as a marketing .................................................................... 9

2.2 Overview previous research..................................................................................... 27

3.1 Operational research variable .................................................................................. 48

4.1 Characteristics of respondents by gender ............................................................... 57

4.2 Characteristics of respondents by age ...................................................................... 58

4.3 Characteristics of respondents by job...................................................................... 59

4.4 Indicator of Functional Value ................................................................................... 60

4.5 Indicator of Emotional Value ................................................................................... 62

4.6 Indicator of Consumer Decision ............................................................................... 63

4.7 Tryout result of validity test ..................................................................................... 65

4.8 Tryout results of reliability variable functional value .............................................. 66

4.9 Tryout results of reliability variable emotional value ............................................. 66

4.10 Tryout results of reliability variable Consumer Decision ......................................... 67

4.11 One-Sample Kolmogorov-Smirnov Test ................................................................... 68

4.12 The result of multicollinearity .................................................................................. 71

4.13 Result of T-test ......................................................................................................... 73

4.14 Result of F-test ......................................................................................................... 75

4.15 The result of multiple linier regressions .................................................................. 76

4.16 Result of determinant coefficient ............................................................................ 77

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LIST OF FIGURES

No. Description

2.1 Five-fold Typology of Consumption Values ............................................................. 19

2.2. Consumer Decision Making ...................................................................................... 22

2.3 Conceptual Framework ........................................................................................... 33

4.1 Normality Test Result Using P-Plot Graph ............................................................... 69

4.2 Normality Test Result Using the Histogram Chart ................................................... 69

4.3 Scatterplot of Heteroscedasticity............................................................................. 72

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LIST OF APPENDIX

No. Description

Appendix 1 Questionnaire ................................................................................................

Appendix 2 Answer of Questionnaire ..............................................................................

Appendix 3 Validity and Reliability Tests ..........................................................................

Appendix 4 Characteristics of Respondents .....................................................................

Appendix 5 Classic Assumption Test and Multiple Linier Regressions.

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CHAPTER I

INTRODUCTION

A. Background

Marketing communication is a fundamental and complex part of a

company’s marketing efforts. Marketing communication also can be

described as all the messages and media that we deploy to communicate.

Successful company is not only depending on how good their external

marketing communication but also important to have a good internal

marketing communication (Rogala & Kaniewska-Sęba 2015).

Internal marketing topic has so many definitions originating from

different researchers. The term internal marketing was first used by Berry

and then by many others (Cahill 2002). Berry L.L described internal

marketing as the employees are internal customers (Brooks et al. 1999).

Berry first proposed internal marketing as a solution to the problem of

delivering higher quality of service. With the significant growth of service

sector and the knowledge-based economy, internal marketing is increasingly

important to company. To have a good internal marketing is to have a good

internal communication platform.

The digital age is changing market dynamics, companies must be good at

competing in the digital world against their competitors. According to

(Rogala & Kaniewska-Sęba 2015) good competition begins with fixing the

internal communication, with good internal communication it will be good

also in external as to the customers, relation, and others external as do Bosch

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competitors that is Siemens. Siemens states that internal communication is

important to engage and helping employees understand the company and how

they fit into them and enabled its marketing and corporate communication

teams efficiently and effectively (Brown 2016). Siemens try to communicate

with their employees using online communication, and keep online content as

“fresh” as possible. They also use social media to give transparency between

employees and broad management since 2000. This communication allow

different employees to access and update content locally for their department

and it also provides marketing and communication teams the ability to

distribute content easily to all department (Mutter 2014).

Meanwhile, not inferior to its competitor, the company has a digital

communication platform for employees called Bosch Global Net (BGN) in

early 2002. Bosch Global Net is based on Liferay design that has a function

neatly and structured like a web page structured but the function of the BGN

is very difficult to use, therefore only a few people from each department are

invited to join the training and assigned the role to create and update their

department information in BGN. Seen from its efficiency and effectiveness,

finally in 2012 the company began to realize with the existence of social

media that can be developed as internal communication.

Company reacted to have a good digital communication platform for their

employees to see the positive effects change by introducing social business

platform which called ‘Bosch Connect’ (BC). Bosch Connect is software

developed by IBM and very closely related to their own network called IBM

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Connections. ‘Bosch Connect’ was introduced at Bosch worldwide, as an

open and transparent working and collaboration platform and to generate a

more transparent, open and flexible organization, available for all associates,

partners and consumers.

Everyone in the company who has access to the current system called

Bosch Global Net (BGN), also was granted the access to Bosch Connect.

Bosch Connect have functions and mechanics are in many ways similar to a

social media platform, but with a number of features specifically designed for

the business world (Louw & Mtsweni 2013). Same as their competitor,

company also believe in the power of networks, employees can access and

update content locally for their department to help marketing and

communication teams deliver message easily. Company also want to offer

them a working environment where employees feel comfortable and can use

the media they have become used to in their private lives (inside.eLibrary of

Bosch 2014).

Companies want their employees able to use internal communication

platform which called Bosch Connect to established network and connect

with others employees at Bosch all over the world to improve the available

knowledge. Unfortunately, since the introduction of Bosch Connect,

employees as internal customers have not been actively using the social

platform to communicate, collaborate and coordinate internally (Robert

Bosch GmbH, 2014). As previous researcher, it was found that employees are

still reluctant to make changes from BGN to Bosch Connect because there are

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still many shortcomings from Bosch Connect as it is not user friendly and not

in accordance with the image of Bosch Connect itself because it does not look

as attractive as social media.

A majority of companies faces the same challenge of how to cope with

the changing environment (Ferron et al. 2011). In today’s world, there are

several concepts in business that regulate the means of communication and

interaction with one another (Chaturvedi 2011). The concept of social

business introduces a new kind of concept with much more flexible lines of

communication. The idea of social business is bringing creative minds

together to improve and share knowledge for a common goal (inside.eLibrary

of Bosch 2014).

In July 2016, Bosch Connect project team with IBM have developed

Bosch Connect looks similar like Facebook to give a senses such as feeling

relaxed, enjoying consumption and receiving pleasure using social business

platform Bosch Connect (Sweeney and Soutar 2001) and with function more

user friendly than previous communication platform which called BGN With

the hope of increasing the number of employees who are willing to support

the company to become a global company and transparent by using social

business Bosch Connect.

The reasons for employees behaving the way they do and the outcome

was a theory of user values according to which consumer choice behaviour is

influenced by five consumption values: functional, social, emotional,

epistemic and conditional value (Sheth et al. 1991).

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Based on the findings of the situation of this study, the research will only

focus by analyzing the functional value and emotional value. The term used

in this study of customer also can be mean as employee.

Based on this background, the thesis will conduct as a research entitled as

Analysis of functional and emotional value towards internal consumer

decision to use social business platform “Bosch Connect” as internal

communication platform.

B. Problem Definition

Based on the background, the formulation of the problem in this research

is “Do functional and emotional values have influence partially and

simultaneously on consumer decision to use Bosch Connect as internal

communication platform?”

C. Purpose of This Research

1. Purpose of this research

The thesis analyze the concept of social business in general, and it focused

on identifying do functional value and emotional value have influence

partially and simultaneously towards consumer decision to use Bosch connect

(Case: CI Marketing Department).

2. Benefit of This Research

a. For the Company

This thesis is to know how far the end users understanding with the

concept of social business and give indications whether functional and

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emotional value influences the users to use social business and

especially for CI Marketing Department.

b. For the Researcher

This thesis is a chance for author to applying the knowledge

obtained during lectures and comparing theory with actual problem in

international company.

c. For the Reader

This thesis can provide information to the users of social business,

especially in Bosch Connect and it can be used as a reference material

for further research within Bosch Group.

.

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CHAPTER II

LITERATURE REVIEW

A. Theoretical Foundation

The chapter theoretical foundation highlights the current understanding of

Social Business and find out the functional and emotional value that influence

employees to use social business “Bosch Connect”. Hereby defining terms

and functions associated with the topic will also be covered.

1. Marketing Communication

Marketing communication (MarCom) is a fundamental and complex

part of a company’s marketing efforts. Loosely defined, MarCom can be

described as all the messages and media you deploy to communicate.

Successful company is depending on the efficient communication, both

internal and external. The necessity to exchange information between a

seller and a buyer, a marketer and a consumer or between employees

makes communication a very important area of the marketing process. The

companies have to act and obliged to manage the complex marketing

communication plan (Rogala & Kaniewska-Sęba 2015).

a. Internal Communication

According to OlsztyńskaA, internal communication is process of

transferring information which aims to raising employees for every

action undertaken for a company and building loyalty and

identification with an organization. The internal marketing does not

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focus on customer and their needs but on the employees and their

requirements and effective internal marketing activity leads to better

performance of the company. According to this concept it is satisfied

personnel, which makes company successful. Furthermore, such

employees pass their project to the customers thus turning the

profitable and loyal for the company (Schultz 2004).

The primary and superior aim of internal marketing

communication is shaping and changing employees’ behaviors so they

will lead to a better cooperation with company goals and improving

communication and relationship between supervisor and employees or

even between colleagues.(Drake 2015) mentioned that the company

should make their employees love their brand which will convince the

customer to love it as well. Furthermore, (Vasconcelos 2007) argued

that the external marketing strategies will be improved firstly by

improving the internal marketing strategy such as developing the

internal relationships between the internal customers (the

employees), also by satisfying the need for the internal customers and

services providers to make them satisfied and motivated (Tsai &Tang

2008).

Regarding the range of company aspect covered by internal

communication, it needs many diverse tools to fulfill its tasks. As all

employee communication activities, also its tools can be divided into

two groups – formal and informal tools.

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Table 2.1

Internal communication as a marketing communication

Formal Informal

Face to face

conversation

Memos

Reports

Information Boards

Meetings

Intranet

Newsletter

Email

Rumors and Gossips

Unofficial after-work

meetings

Managers lunches

with employees

Local community life,

charity, sport, culture

Source: Internal communication as a marketing communication

tool (Rogala & Kaniewska-Sęba 2015).

2. Internal Marketing

Several researches have focused on external marketing, however

interest in internal marketing aspects is increasing due to its importance in

the success of firms (Sartori et. al. 2014). Papasolomou defines internal

marketing as an emphasis in considering employees as partners to an

organization's efforts of achieving organizational success, rather than a

cost (Papasolomou 2003).According to (Keelson and Polytechnic 2014)

indicate that, internal marketing plays an important role in success of

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businesses both in economic and non-economic perspective. Furthermore,

internal marketing practices are designed for attracting and retaining the

most qualified and committed employees for the organization (Bansala et

al. 2001).

(Gounaris2008, p.68) emphasizes that the introduction of internal

marketing relies on two principles, namely: that it is important to satisfy

the needs of employees before the business can satisfy the needs of its

customers, and the rules that apply in the market area of the business, by

analogy, are also relevant to its internal market.

a. Internal marketing areas

The modern business is challenged by the reality that it is

faced with two market and customer types, namely those internal and

external to the business, Bowers and Martin (2007, p.88-89).

According to Steyn and Ellis (2004, p.34) to strengthen the

establishment of an internal marketing climate, the management of a

business must focus on the continuous research of the following

aspects:

1. The personal training and development of employees, continuous

communication to employees.

2. The empowerment and participation of employees, internal

consumer segmentation.

3. Performance appraisal systems.

4. The acknowledgement and rewarding of employees and supportive

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work relationships.

1) Internal Customer

Berry L.L was first that described if the employees as

customers. Berry first proposed employees as customers concept in

internal marketing is similar to external customers as a solution to

the problem of delivering higher quality of service(Brooks et

al. 1999). With the significant growth of service sector and the

knowledge-based economy, internal marketing is increasingly

important to organizations. (Pawar 2014) mentioned that

employees within your own company are internal customers.

The internal market of a business encompasses its employees.

This market is continuously being influenced by the ability of

employees to work together as a unit to reach and maintain the

objectives of the business. The employees of the business can

furthermore be viewed as the “internal suppliers” and “customers”

of the business (Voss and Calantone2005, p.163). Businesses are

continuously putting a greater emphasis on the following two

aspects, namely employees as internal customers of the business,

and the motivation and retention of employees over the long term,

Gupta and McDaniel (2005, p.397), Van Eeden and Koekemoer

(2000 p.21).

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3. Social Media

A study of McKinsey Global institute with the title “The social

Economy: Unlocking value and productivity through social technology”,

done in 2012, announced that today, more than 1.5 Billion people

worldwide have access to and use social media. Around one fifth of online

time is used by surfing on social networking sites, 72% of companies use

social technology and most of them also see a benefit in it (Chui et al.

2012).

a. Definition

Since social media is still a relatively new topic several

slightly different definitions exist. (Kaplan & Haenlein 2010) define

social media as a group of internet-based applications that build on the

ideological and technological foundations of Web 2.0, and that allows

the creation and exchange of user-generated content.

According to the online Oxford dictionary, social media

describes “websites and applications that enable users to create and

share content or participate in social networking”. The Encyclopaedia

Britannica states in its online encyclopaedia, that the term social

media refers to technologies, platforms, and services that enable

individuals to engage in communication from one-to-one, one-to-

many and many-to-many. It furthermore is a new driver of the

convergent media sector.

There are some functions in Social Media such:

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1) Communities

(a) Definition

(Stocker & Tochtermann 2012) define a community as a group

of people, which, for a certain time, freely share topics and

develop a community spirit through social interaction. Virtual

Communities focus on building relationships and create a social

context where users can express themselves, share information,

knowledge and media on a “many-to- many” basis (Berge and

Buesching2007, p.26). Mostly, users of communities share and

pursue a common interest or goal (Janzik 2011, p.2)

Virtual workrooms, also called communities, exist to simplify

the means of collaboration. Here, the physical boundaries

between departments, countries, and different time zones don’t

stand in the way of exchanging knowledge and generating ideas.

(b) Functions

Communities are self-organizing working groups, whose

members come together in different constellations, depending on

the task at hand. Communities exist to discuss or collaborate with

people who may or may not share the same place of working. In

communities, no hierarchical levels exist, there may be

moderators or administrators who help the community to sustain

and grow but have no higher deciding position.

2) Forum

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(a) Definition

A forum can be defined as a place, meeting, or medium where

ideas and views on an issue can be exchanged (Oxford Dictionary

2016). The Oxford Dictionary further defines a forum as an

internet site where users can post comments about an issue or

topic and reply to other users' postings.

(b) Functions

People can publicly publish questions or start a discussion

about any topic. There are different types of forums, like the

common questions and answers type, or a forum that focuses on

an idea and the discussion about it. Anyone wishing to participate

can do so by contributing to existing topics or starting a new

topic. Some forums also could rate the answers to find the best

solution to the question with several different and independent

opinions.

3) Wiki

(a) Definition

The word wiki is derived from the Hawaiian word “wikiwiki”

which can be translated as “fast”. This is a hint to the envisioned

use of a wiki: a platform which grants fast and easy access to

information.

(Stocker & Tochtermann 2012) describe Wiki as web based

software which allows all users to edit and read content provided

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on wiki pages. The author further state, that it is a platform which

is easy to handle and used for collaborative working on texts and

hypertexts.

(b) Functions

Wiki, as defined by ‘www.businessdictionary.com’, is used as

knowledge base. Everyone can write about topics they are

interested in, referencing them to books or other web pages

containing that information. Apart from that, it can be used

simply as data storage software in which any information, no

matter the content, can be uploaded for public evaluation. In a

commercial environment, shielded wikis are used to save every

bit of information that could be relevant for other employees.

Technically, all generated data is allowed in a wiki. Often, wikis

are used for collaboration in working groups. It is stated in the

Encyclopedia Britannica, that these systems are not fool proof but

work with the principle and basic assumption of the goodness of

people. The community of users can edit or correct content, which

is being perceived as misleading or incorrect.

4) Blog

(a) Definition

Weblogs, a combination of web and log, in short blogs, are

online journals, a kind of virtual diary in which brief articles are

published, then displayed in reverse chronological order, and are

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often open for others to comment on (Stocker & Tochtermann

2012). This helps community members to update each other.

(b) Functions

To find blogs with special content the blogs are tagged with

terms related to the topic. Blogs are mainly used to share

information that has been gathered recently.

4. Social Business

Several definitions for this relatively new term can be found, but so

far there is none, that is accepted as valid in general. Every company using

Social Business defines its purpose individually. By Social Business,

Bosch mean everything that highly-connected company does. Once

cooperation, communication and the creation and further development of

ideas are being improved or even made possible to be the first place

through networking. Bosch has determined, 'social' should be understood

as something more akin to 'community' or 'together' where the employees

can use Social Business to share and exchange their knowledge

(inside.eLibrary of Bosch 2014).

Similar as term of social media, Bosch also have defined the kind

of Social Business within the Bosch include blogs, wikis, forums,

communities, activity (inside.eLibrary of Bosch 2014).

A more general definition could be Social Business is the creation

of a company to optimize benefit their entire ecosystem (consumer,

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employees, owners, and partners) by embedding collaboration, information

sharing and active engagement into its operations and culture. To get the

result more responsive, adaptable, effective, and ultimately more

successful company (Paul 2013).

a. Enterprise 2.0

The term Enterprise 2.0, same as Social Business, is a rather new

expression and needs consideration when applying a definition.

According to one of the leading researchers on this field (Andrew

McAfee 2006), “Enterprise 2.0 is the use of emergent social software

platforms within companies or between companies and their partners

or consumers.”Enterprise 2.0 is also abbreviated with the term E2.0,

which is widely used in the business world.

The project Enabling Enterprise 2.0 at Bosch defined the term

Enterprise 2.0 is to describe the changing of company culture that are

needed to increase level of transparency, trust, openness and changes

in leadership style that allow employees express and talk to the board

of management without taboos as company campaign which called

#MoveNow!(Najork 2016). Enterprise 2.0 also describes the use of

digital networking technologies (Social Business software). Bosch

Connect is our IT platform for collaboration and networking within the

company.

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b. Bosch Connect

Bosch Connect is a social business platform used by the Bosch

Group on a worldwide basis and was introduced in 2012. Since more

than 20 years, information and communication technologies have

made it possible to integrate and implement automated business

processes. Electronic, standardized data exchange within companies

and with external partners thus boosts efficiency. In the future, the

increasing networking of systems and processes in the internet of

things and services will increase the availability and quality of

information, forming the basis for intelligent business processes.

Social media is an additional way for Bosch to communicate with

internal and external target groups and maintain contacts

(inside.eLibrary of Bosch 2012).

5. Consumption Value

Every individual has a specific value structure according to which

they make decisions. According to (Brooks et al. 1999) described if “The

Employees as Customers”, therefore we can use the term of consumer as

employees. Values and needs define the intended purpose of using the

social mediaplatforms. As (Kujala & Väänänen-vainio-mattila 2009)

define: user values“describe users’ psychological values that affect their

views as to what kind ofpurpose, functions and characteristics are

important to them in a certain usagesituation and context”.

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(Boztepe 2007) identified there are four major categories of value that

influence people behave: Functional, Social Significance, Emotional, and

Spiritual.

(Sheth et al. 1991)studied the reasons for consumers behaving the

way they do and the outcome was a theory of user values according to

which consumer choice behaviour is influenced by five consumption

values: functional, social, emotional, epistemic and conditional value.

Figure 2.1

Five-fold Typology of Consumption Values

Source: Five-fold Typology of Consumption Values: Environmental

Responsibility Provides Three Forms of Value for Consumers (Sheth et al.

1991).

According to (Abend 2012), the company use social business

bosch connect at the early stage because its emotional value. Therefore this

research will only focus on two values which are Functional and

Emotional value to analyze do functional and emotional value still have

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influence towards consumer decision after Bosch Connect update on July

2016.

a. Functional Value

According to (Sheth et al. 1991) define functional value as “the

perceived utility acquired from an alternative’s capacity for

functional, utilitarian or physical performance”. Functional attributes

and rational thoughts dominate the consumption decision-making

process, in which self-oriented value is highly prominent such as the

quality, uniqueness, usability, reliability and durability.

According to (Abend 2012) on his thesis at Bosch Rexroth, in the

case of usability of social business “Bosch Connect” toward

purchasing department can be determined that the influence of

consumer decision (employees) are the functional value which are

easy information sharing, finding expert, and faster problem solving.

Functional value refers to functional value of a product. It

covers the values of convenience, economy, and quality as sub-

categories. In practice, convenience is defined in various ways that

include concepts such as accessibility, appropriateness, of

unpleasantness, or compatibility to the local context rather than just as

a matter of saving time and effort(Boztepe 2007).

b. Emotional Value

According to(Sheth et al. 1991), Emotional value refers to the

utility derived from the feelings, or affective states that a product

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generates. Indeed, several types of goods and services are associated

with emotions. Certainly, many of us have acknowledged the

widespread exploitation of feelings in advertising, as many companies

utilize associations aroused by feelings of comfort in their marketing

strategies.

Although many manufactured product may create the emotional

value for the consumer, it is usually associated with the consumption

of aesthetic and hedonic products or services, such as Social Media.

Consumption of hedonic products or services underlines “those facets

of consumer behaviour that relate to the multi-sensory, fantasy and

emotive aspects of one’s experience with products” as this behaviour

is pleasure seeking (Holbrook and Hirschman 1982,p.92). Hedonic

products and services include multisensory features and imply

experiential consumption, fun, and excitement, etc. Every product can

be as much hedonic as it is perceived to be by an individual (Khan et

al. 2004). (Russell and Pratt 1980) suggest that there are four basic

emotional states (pleasant, unpleasant, arousing and sleepy).

Measuring the emotional value, (Sweeney and Soutar 2001) deploy

scale items, such as feeling relaxed, enjoying consumption and

receiving pleasure. (Petrick 2002) notes that in order to create

emotional value consumption should make consumer feel good and

delighted, give pleasure and sense of joy, and bring happiness.

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Product Choice

Need Recognition

Information Search

Outcomes

Evaluation of Alternatives

Emotional value refers to the affective benefits of a product for

people who interact with it, benefits such as pleasure or fun. Such

benefits arise from affective experiences, which, according to (Desmet

and Hekkert 2007). While (Norman 2004) described, the ascription of

emotional value is a psychological phenomenon.

6. Consumer Decision

The decision is the selection of two or more alternative options.

This indicates that the individual decision-making faced by various

alternative options and that is required to choose one of the alternatives

(Schiffman and Kanuk, 2007). According to (Solomon et al. 2012, p.263)

the process of consumer decision making is a cycle of recognition:

Figure 2.2

Consumer Decision Making (Solomon et al. 2012, p.263)

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a. Problem Recognition

Problem recognition is the most important stage which leads to

consumer decision to use product and services (Hawkins et al. 2001,

p.508) (Kardes et al, 2011). Problem recognition occurs whenever the

consumer sees a significant difference between their current state and

their desired or ideal state (Solomon et al. 2012, p.263).

According to Kotler et al (2009 p.180), the buying process starts

when people recognize there is a problem or need.

b. Information Search

Once an individual has been recognizes the problem, consumers

need qualify information to resolve it. Information search is the

process where consumers make a survey on their own to make a

reasonable decision (Solomon et al. 2012, p.265). According to Kotler

et al (2009 p.180) there are two level of arousal, first called

heightened attention which means a person simply becomes more

receptive to information about product or services. The other one is

active information search which means people looking for reading

material, asking their friends, surfing online and visiting stores to

learn about the product or services.

There are two types of information sources: internal and external

information search. Internal search involves the consumers’ memory

about the product or service and external search includes word of

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mouth, store visit, trial and online social networking and social media

(Kardes et al, 2011).

c. Evaluation of Alternatives

According to (Solomon et al. 2012, p.273), there are three concept

in evaluating of alternatives: The first is evoked set where alternatives

considered during consumer’s decision process are their evoked set,

and the evoked set is the product or service that already in memory

and well-known, the second is inept set where consumer is aware with

the product or service but would not take consider it, and the last is

inert set where not under consideration at all. In this stage, the

consumer enter the alternative evaluation stage where they have to

decide what criteria to use to perform evaluation (Schiffman et al,

1991) and which alternative would be the best to fulfill their need

(Blythe, 2008).

Kotler et al (2009 p.180), have describe some basic concepts in

evaluating alternatives. First, the consumer tries to satisfy a need.

Second, the consumer looks for certain benefits. Third, the consumer

sees each product or services as a bundle of attributes to satisfy their

need. The attribute that interest people for example: WhatsApp (user

friendly, product is rarely error, available via PC, cheaper internet

package).

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d. Product Choice

Once consumer have found their relevant alternatives and

evaluated them, they should make their choice among the alternative.

Consumers choose the certain products because the product appeals to

them. The choice can be influenced from different sources therefore

internet is an effective tool in this stage (Hawkins and Mothersbaugh,

2010).

B. Previous Researches

1. The title of this research is “Functional, Social and Emotional Values as

Determinants of Environmentally Responsible Media Consumption at

Lappeenranta University of Technology in Finland” and it was done by

(Kosonen Jana2014). The study intended to determine the functional,

social, and emotional values towards the consumer choice behaviour

regarding media consumption. The analysis used in the study was

qualitative and the sampling technique was purposive sampling. Validity

test and reliability test were assessed for testing the data whether the data

was valid and reliable. The result of the study indicate that based on the

empirical analysis, consumers possess functional, social and emotional

consumption values are depending on the motivation of the respondent.

According to the results, functional value was more dominating

consumption behavior. Despite of that, emotional and social consumption

values were also recognized as the primary values within the sample.

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2. Mornay Roberts-Lombard (2009) conducted a research regarding

“Employees as customers – An internal marketing study of the Avis car

rental group in South Africa”. This study used quantitative research

approach ad applied a descriptive research. The respondent for this study

was 225 managers of Avis car rental branches in the six major cities of

the country. From the result, it can be found that the employees as

internal customer of the business must be willing to support the internal

marketing initiatives of the business since they are expected to approach

the external customer base of the business, in a professional and efficient

manner. Management can furthermore improve the level of

communication to employees. It is only possible to improve external

marketing to the external customer if the internal marketing are

professionally managed.

3. Vasyl Denys and Júlio Mendes conducted a research in 2011 regarding

“Consumption Values and Destination Evaluation in Destination

Decision Making”. This study aims to understanding the role of four

consumption values in decision making with respondents represent 24

nationalities. The result is most survey participants were able to

distinguish and prioritize different consumption values and emotional

value is the greatest importance for decision makers.

4. The title of this study is “Why People Use Social Media Platforms:

Exploring the Motivations and Consequences of Use” done by Petri

Hallikainen 2006. The aim of the research was to understand the values

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and needs that drive the user to use social media platform. The result can

be assumed that users would use social media influenced by five value

which are functional, social, emotional, epistemic and condition value.

5. The title of this study is “what value do users drive from social

networking application” was done by Larry Nelae and Rebekah Russel-

Bennett, 2009. The aim of this study is to know what value that drive

users to use social media, and the result is functionality is a must, but

however functionality is not enough. It must be combined with either

social or emotional value to create the feeling of “coolness” that given

user to recommend an application to their friends.

6. The title of this study is “Usability of social business “Bosch Connect”

toward purchasing department” was done by Nicola Abend, 2012. The

result can be stated if the consumers (employees) use social business

Bosch Connect because it’s emotional value.

Table 2.2

Overview Previous Research

No Title Research

Variable

Research

Methodology Result

1 Functional, Social

and Emotional

Values as

Determinants of

Environmentally

1. Functional

Value (X1)

2. Social Value

(X2)

3. Emotional

Qualitative Functional value

was more

dominating

consumption

behavior. Despite

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Responsible Media

Consumption at

Lappeenranta

University of

Technology in

Finland.

Value (X3)

4. Consumptio

n (Y)

of that, emotional

and social

consumption

values were also

recognized as the

primary values

within the sample.

2 Employees as

customers – An

internal marketing

study of the Avis

car rental group in

South Africa

1. Internal

Customers

(X1)

2. External

Customers

(X2)

3. Outcomes

(Y)

Qualitative Employees as

internal customer

of the business

must willing to

support the

internal marketing

initiative of the

business.

3 Consumption

Values and

Destination

Evaluation in

Destination

Decision Making

1. Functional

Value (X1)

2. Social Value

(X2)

3. Emotional

Value (X3)

4. Epistemic

Value (X4)

Qualitative Emotional value

is the greatest

importance for

decision makers.

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5. Condition

Value (X5)

6. Consumer

Decision (Y)

4 Why People Use

Social Media

Platforms:

Exploring the

Motivations and

Consequences of

Use

1. Functional

Value (X1)

2. Social Value

(X2)

3. Emotional

Value (X3)

4. Epistemic

Value (X4)

5. Condition

Value (X5)

6. Consumer

Decision

(Y)

Qualitative The result can be

assumed that

users would use

social media

influenced by five

value which are

functional, social,

emotional,

epistemic and

condition value.

5 What value do

users drive from

social networking

application

1. Functional

Value (X1)

2. Emotional

Value (X2)

3. Consumer

Decision

Qualitative Functionality is a

must, but

however

functionality is

not enough. It

must be combined

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(Y) with either social

or emotional

value to create the

feeling of

“coolness” that

given user to

recommend an

application to

their friends

6 Usability of social

business “Bosch

Connect” toward

purchasing

department

1. Functional

Value (X1)

2. Emotional

Value (X2)

3. Consumer

Decision

(Y)

Qualitative The result can be

stated if the

consumers

(employees) use

social business

Bosch Connect

because it’s

emotional value.

C. Relationship between Variable

a. Relationship between functional value towards customer decision

Every individual has a specific value structure according to which

they make consumption decisions. (Nelae and Bennett 2009) stated in

their research with the title “what value do users drive from social

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networking application” if functionality value is a must, but however

functionality is not enough. It must be combined with other value to

create the feeling of “coolness” that given user to recommend an

application to their friends.

(Kosonen 2014) identify on her research with title “Functional,

Social and Emotional Values as Determinants of Environmentally

Responsible Media Consumption at Lappeenranta University of

Technology in Finland”. The results stated that functional value was

more dominating consumption decision, and has simultaneous and partial

effect on consumer decision.

(Sheth et al. 1991) as one of the leading researchers on this field

also stated that functional value is dominate the consumption decision-

making process especially when selecting utilitarian items.

b. Relationship between emotional value towards customer decision

According to (Sheth et al. 1991), Emotional value represents “the

perceived utility acquired from an alternative’s capacity to arouse

feelings or affective states” and many of us have acknowledged the

widespread exploitation of feelings in advertising, as many companies

utilize associations aroused by feelings of comfort in their marketing

strategies to influence consumer decision.

According to (Sweeney and Soutar 2001), emotional value deploy

scale items, such as feeling relaxed, enjoying consumption and receiving

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pleasure. (Petrick 2002) notes that in order to create emotional value

consumption should make consumer feel good and delighted, give

pleasure and sense of joy, and bring happiness that make influence effect

toward consumer decision to consume a product.

D. Conceptual Framework

Conceptual framework is defined as a network, or “a plane,” of

interlinked concepts that together provide a comprehensive understanding of

a phenomenon or phenomena (Jabareen 2009). According to (Bryman & Bell

2011), concepts are considered to be the landscape in a qualitative research;

nevertheless, the way the concepts are applied is usually different when

developing a quantitative research strategy. Highlighting the concepts and

contexts of the research help on focusing on the main fields of the study; it is

a measure to define the territory of the research in hand as well as indicate the

theories that would be applied (Leshem & Trafford 2007). A conceptual

framework is also a less complex form of theories that describes an abstract

aspect which might appear under common conditions.

In this conceptual framework shown that independent variables are

functional value and emotional value and dependent variable is consumer

decision. Then, all variables will be further processed by using multiple

regression in order to know either every independent variable will influence

dependent variable and partially influence dependent variable or the other

way around.

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Based on the literature review the conceptual framework will be presented below:

Figure 2.3

Conceptual Framework

Consumer Decision

(Bosch Employees)

Functional Value Emotional Value

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E. Hypothesis

Based on the problem formulation and the conceptual framework that have

been given, the researcher formulated the following hypothesis such as:

1. Ho 1: Functional value (x1) does not significantly influence towards

consumer decision (y) to use Bosch Connect as internal

communication.

Ha 1: Functional value (x1) significantly influence towards consumer

decision (y) to use Bosch Connect as internal communication.

2. Ho 2: Emotional value (x2) does not significantly influence towards

consumer decision (y) to use Bosch Connect as internal

communication.

Ha 2: Emotional value (x2) significantly influence towards consumer

decision(y) to use Bosch Connect as internal communication.

3. Ho 3: There are no significant influence between functional value (x1) and

emotional value (x2) toward consumer decision(y) to use Bosch

Connect as internal communication.

Ha 3: There are significant influence between functional value (x1) and

emotional value(x2) toward consumer decision(y) to use Bosch

Connect as internal communication.

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CHAPTER III

METHODOLOGY RESEARCH

A. Scope of Research

This research is done in order to analyze regarding how Functional value

(X1), Emotional value (X2) significantly influence towards consumer decision

(Y) to use Social Business platform Bosch Connect as their internal

communication. Owing to internal policies within Robert Bosch GmbH, the

scope is limited. The sample of this research is obviously employees at CI

Marketing Department in Robert Bosch GmbH, Stuttgart Germany. This

research started on November 21st 2016.

B. Sampling Method

This research is involved employees that selected by random sample, so

that each person remaining in the population has the same probability of being

selected for the sample (Frerichs RR 2008). In the preface, all head of CI

marketing department will be in contact to forward the questionnaire to all CI

employees who are both, involved or uninvolved, in using Bosch Connect.

According to Berry L.L that employees can be viewed as internal

customer. Therefore, participants of this research are employees. The

employees viewed as involved and active employees, if they have the

experience of working with the software, and therefore able to share

experiences and evaluate the performance, improvements and limitations. In

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the same way, associates without said experience are uninvolved employees.

They take part, in order to understand and identify the obstacles connected to

Bosch Connect.

Due to the sensitivity of the data employees as internal customer and as the

participant of this research were asked to name their department but give no

further personal information. Any other personal information furthermore was

of no importance to be able to evaluate of the results.

C. Collection of Data

There are two difference type of data collection which are primary and

secondary data. It is ideal to have both primary and secondary data because

they support each other and also help to get strengthen result. The secondary

data can support the primary data and the other way around or if they do not

support each other they give am existing contrast of effects (Jacobsen 2002).

1. Primary research

Primary data is when information is collected from respondents

through survey (Ghauri and Gronhaug 2005). The collection of primary

data has been conducted using questionnaires sent by email included the

link to Bosch survey website (https://survey.bosch.com/cgi-

bin/s.app?A=bgJkO4mY). Formulating the questions in the right way is

essential for the outcome of the results. All questions have been based on

the theory of this thesis to support the importance and meaning of the

questions for the overall result. The questions have been chosen to relate

and answer the research questions, and the questionnaire writer must be

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familiar with the language, otherwise it can lead to misunderstanding in

the question’s formulation (Brace 2013, p.113).Therefore, the

questionnaire will also write in English and German. To receive the

highest amount of replies the questionnaire has been designed to take

approximately 10minutes.

The questionnaire will be sent out within the company, as company

internal email. As mentioned above, only Bosch internal employees have

been participating in the questionnaire.

Due to the content of the questions, respondents could rate a

predefined answer per their consent with the statement, using a system

with points from 1 to 5. Whereas 1 being the strongly disagree and 5 being

the strongly agree. According to (Bertram 2007), Likert scale is to obtain

respondent preferences or degree of agreement with a statement or set of

statements. Furthermore, all used terms are company internal

terminologies, guaranteeing, that no further clarification was needed for

understanding the questions in the same way by all respondents and to

receive reliable answers. The questions therefore will be easy to

understand and only little time is needed to respond to each question.

2. Secondary research

Secondary data is information that is not collected by the researcher,

it is previous data that collected by someone else in the past. It is important

to be critical to the secondary data that is found, where does the data come

from, who has collected the data (Jacobson 2002).

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The secondary data for this study has been collected through

observation with various portals. Mainly, the libraries of Bosch Group, the

university online library of HFU Business School, the university online

library of FHWS university and company internal data sources, such as

intranet and ‘Bosch Connect’, have been used. By studying the existing

literature, it became clear that there is a lack of profound sources attending

to the relatively new topic, social business, or the way companies use

social media tools as internal communication to their internal customer

(employees). Often, results have been only company or area specific and

difficult to be applied in more general terms.

D. Data analysis method

The method of data analysis using descriptive statistics, test causality in

the classical assumption test and hypothesis test.

1. Data Quality Test

In order to minimize problems, all empirical data used for studies

have two main characteristics and requirements that need to be fulfilled.

This may occur during the research and analysing process.

Reliability and Validity are important concepts in research as they

are used for enhancing the accuracy of the assessment and evaluation of a

research work (Tavakol and Dennick2011, p.53).

a. Validity Test

Validity is something that aim for when measuring something

because it means that you have measured what you intended to measure

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(Tavakol and Dennick 2011, p.53).

According to (Azwar in Priyatno, 2013), validity of the research can

be seen by doing direct assessment towards coefficient of correlation

and all items that reach the minimum coefficient of correlation (0,30) is

assumed valid.

The thesis is written with the background of Robert Bosch GmbH.

Since all participants are employees of the company, it is to be

assumed, that everyone has very similar background information about

the study and the program itself. Therefore, the validity can be

increased due to the same knowledge being available for all

respondents. Differing cultural backgrounds that could lead to

misinterpretation of the data (Dolnicar and Gruen 2007) can be

neglected, since even with differing social backgrounds, all respondents

live and work in the same environment. Age, which also be social

background forms an exception and can matter of fact influence the

results of the questionnaire.

b. Reliability Test

If a measuring instrument can be used to measure the same set of

objectives repeatedly, displaying the same results, it is said to be

reliable. The stability and internal consistency in tests are defined as

reliable by the quotient of true variance to the total variance. According

to (Ghozali 2005:42), to look at reliability, variable Cronbach Alpha has

a value greater than 0.60.

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Reliability refers to the consistency, stability and repeatability of

results i.e. the result of a researcher is considered reliable if consistent

results have been obtained in identical situations but different

circumstances (Twycross and Shields 2004, p.36).

2. Classical Assumption Test

To test the assumption of classical primary data, such normality test,

multicollinearity test and heteroscedasticity test will be conducted.

a. Normality Test

Normality test aims to measure whether the remedy in the

regression model the independent variable both have normal or near-

normal distribution. A good regression model is to have a normal or

near-normal distribution. In this study, normality is used for normal

probability plot (PP Plot). A variable is said to be normal if the

distribution of the image data points are spread around the diagonal

line, and unitdirectional data points follow the diagonal line (Santoso

2004, p.212)

Accrding to (Ghazali, 2011: 160), normality test is used to test

whether a regression model, the dependent variable and the

independent variables or both have a normal distribution or not. Good

data is data that has a normal distribution pattern or distribution of the

data is not to the left or to the right.

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b. Multicollinearity Test

Multicollinearity test is used to remedy test whether the regression

model found a correlation between variables in a multiple regression

model. If there is a high correlation between the independent

variables, then relation between dependent variable may have the

wrong sign because a good regression should not be a correlation

between independent variable, or might be collinear but not too high

(Gani 2015).

According to Imam Ghozali (2005: 91), the cut off value that is

commonly used to show the multicollinearity is tolerance value >0.10

or equals to value VIF <10.

c. Heteroscedasticity Test

Heteroscedasticity test aims to test whether a regression modelof

the residual variance inequality occurs one other observation.

Heteroscedasticity test can be viewed by using the graph plots the

predicted value of the dependent variable with residual. If the graph

plot shows a pattern of dots as points wavy or widened then narrowed,

it can be concluded that free heteroscedasticity has occurred but if the

graph plots do not form a clear pattern, it does not happen

heterocedastisity (Ghozali, 2005, p.139).

Detection of the presence or absence heteroscedasticity done by

looking at the presence absence of certain patterns between SRESID

scatterplot chart consumer decision (Y) and ZPERD (X).

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3. Hypothesis Testing

a. T-Test Statistics

T-test statistics show how far the explanatory variables or

independent individual variation in the dependent variable explained

and used to determine the presence or absence of the influence of each

independent variable on the dependent variable is individually tested

at the 0.05 level (Ghozali 2005, p.84).

Partial test according to Suliyanto (2004: 65) by using level of

significant (α) = 0,05 and the hypothesis can be depicted as follows:

a. H0 : ß = 0

Functional and emotional values partially do not have influence

toward consumer decision to use social business Bosch Connect.

b. Ha : ß ≠ 0

Functional and emotional values partially have influence toward

consumer decision to use social business Bosch Connect.

c. F-Test Statistics

F-test statistics indicate whether all the independent variables or

free inclusion in the model have the effect of jointly dependent

variable or bound. F-test statistics are used to determine the influence

of all the independent variables included in the regression model

simultaneously tested against the dependent variable at a significant

level of 0.05 (Ghozali 2005, p.84).

Simultaneous test according to Suliyanto (2004: 65) by using

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level of significant (α) = 0,05 and the hypothesis can be depicted as

follows:

b. H0 : ß = 0

Functional and emotional values simultaneous do not have

influence toward consumer decision to use social business Bosch

Connect.

d. Ha : ß ≠ 0

Functional and emotional values simultaneous have influence

toward consumer decision to use social business Bosch Connect.

4. Multiple Linear Regression

Multiple regression involves a single dependent variable and two

or more independent variables and two or more independent variables. The

questions raised in the context of bivariate regression can also be answered

via multiple regression by considering additional independent variables

(Malhotra 2004, p.511).

Priyanto (2002,p.116) has defined regarding multiple regression

analysis and it is defined to assess the relationship among two or more

variables with one dependent variable. This analysis is also used to predict

the value of dependent variable if the value of independent variables

experience up or down and to know the relation line between independent

variables and dependent variable whether each independent variable has

positive or negative relationship.

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Analysis method in this research is a multiple linear regression that

is used to test functional and emotional value towards consumer decision

to use Bosch Connect. The equation of multiple linear regression is as

follows:

Y = a + b1X1 + b2X2

Where:

Y = Consumer decision

a = Constanta

X1 = Functional value

X2 = Emotional Value

B1, b2 = Regression coefficient

5. Coefficient of Determination (R2)

The coefficient of determination (R2) measures how far the

model’s ability is to explain the variation in the dependent variable.

Coefficient of determination values are between 0 and 1. A small value of

R2 is the ability of independent variables in explaining the variation in the

dependent variables is very limited. Value close to one means that the

independent variables provide almost all the information needed for the

prediction of the dependent variable variation (Ghozali 2005, p.83).

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E. Variable Research Operation

Research variable is something that any form specified by the researchers

to be studied in order to obtain information about it, then drawn the

conclusion (Sugiyono 2007,p.59).

The variables in this study are:

1. Independent Variable (X) consist of functional value (X1), emotional value

(X2).

2. Dependent Variable (Y) is the consumer decision to use Social Business

Platform “Bosch Connect”.

Due to the content of the questions, measurement variables could rate a

predefined answer according to their consent with the statement, using a

Likert scale with points from 1 to 5. Whereas 1 being the strongly disagree

and 5 being the strongly agree. According to (Bertram 2007), Likert scale is

to obtain respondent preferences or degree of agreement with a statement or

set of statements.

a. Independent variable is a variable which value does not depend on other

variables, consisting of:

1) Functional Value (X1)

According to (Sheth et al. 1991) define functional value as “the

perceived utility acquired from an alternative’s capacity for

functional, utilitarian or physical performance”. Functional attributes

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and rational thoughts dominate the consumption decision-making

process, in which self-oriented value is highly prominent such as the

quality, uniqueness, usability, reliability and durability.

According to (Abend 2012) on his thesis at Bosch Rexroth, in the

case of usability of social business “Bosch Connect” toward

purchasing department can be determined that the influence of

consumer decision (employees) are the functional value which are

easy information sharing, finding expert, and faster problem solving

Functional Value refers to functional value of a product. It

covers the values of convenience, economy, and quality as sub-

categories. In practice, convenience is defined in various ways that

include concepts such as accessibility, appropriateness, of

unpleasantness, or compatibility to the local context rather than just as

a matter of saving time and effort (Boztepe 2007).

2) Emotional Value (X2)

According to (Sheth et al. 1991), Emotional value represents “the

perceived utility acquired from an alternative’s capacity to arouse

feelings or affective states”. Indeed, several types of goods and

services are associated with emotions. Certainly, many of us have

acknowledged the widespread exploitation of feelings in advertising,

as many companies utilize associations aroused by feelings of comfort

in their marketing strategies.

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Although many manufactured product may create the emotional

value for the consumer, it is usually associated with the consumption

of esthetic and hedonic products or services, such as Social Media.

Consumption of hedonic products or services underlines “those facets

of consumer behavior that relate to the multi-sensory, fantasy and

emotive aspects of one’s experience with products” as this behavior is

pleasure seeking (Holbrook and Hirschman 1982, p.92). Hedonic

products and services include multisensory features and imply

experiential consumption, fun, and excitement, etc. Every product can

be as much hedonic as it is perceived to be by an individual (Khan et

al. 2004). (Russell and Pratt 1980) suggest that there are four basic

emotional states (pleasant, unpleasant, arousing and sleepy).

Measuring the emotional value, (Sweeney and Soutar 2001) deploy

scale items, such as feeling relaxed, enjoying consumption and

receiving pleasure. (Petrick 2002) notes that in order to create

emotional value consumption should make consumer feel good and

delighted, give pleasure and sense of joy, and bring happiness.

Emotional value refers to the affective benefits of a product for people

who interact with it, benefits such as pleasure or fun. Such benefits

arise from affective experiences, which, according to (Desmet and

Hekkert 2007). While (Norman 2004) describes the ascription of

emotional value primarily as a psychological phenomenon.

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b. The dependent variable is the variable that is influenced by other

variables. In this research, the dependent variable is the consumer

decision to use Bosch Connect at example of CI Marketing Department.

Table 3.1

Operational Research Variable

VARIABLES Sub Variables Indicator SCALE

Functional

Value (X1)

(Abend 2012),

(Sheth et al.

1991) and

(Boztepe 2007)

a. Easy Easy information sharing Likert Scale

b. Expert Finding expert

c. Faster Faster problem solving

d. Quality Good Quality

Performance

e. Uniqueness Special features

f. Usability User friendly

g. Reliability Product is rarely error

Emotional

Value (X2)

(Sheth et al.

1991) and

(Boztepe 2007)

a. Enjoyment Relaxation Likert Scale

b. Pleasure User intended for

entertainment

c. Sentimentality Memorability

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Consumer

Decision (Y)

(Solomon et al.

2012)

a. Problem

Recognition

Aware of the difference

between current and

desire communication

platform

Likert Scale

b. Information

Search

Collecting data from

internal and external

c. Evaluation of

Alternatives

Evoked: Platform is well-

known

d. Product

Choice

Determine

selection among

alternatives

e. Outcomes Satisfaction Level

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Chapter IV

Analysis and Result

A. General Description of Research Object

1. Robert Bosch GmbH

Robert Bosch GmbH founded in 1886 in Stuttgart, is a German

multinational engineering and electronics company (Robert Bosch

GmbH, 2013a) . The world’s largest supplier of automotive components in

the field of technology and services owns more than 630 subsidiaries and

regional companies in more than 60 countries (Robert Bosch GmbH,

2016) . Including service partners, the company is represented in more

than 150 countries (Robert Bosch GmbH, 2016a) . Robert Bosch GmbH

employed more than 390,000 employees and generated revenue of EUR

73,1 billion euro in 2016 in its four main business sectors: automotive

technology, industrial technology, consumer goods and energy, as well as

building technology (Robert Bosch GmbH, 2016a) . Main company

values promote and communicate sustainability, innovation, respect,

openness and trust, as well as fairness and diversity (Robert Bosch GmbH,

2013a).

a. CI Department Community

CI Marketing creates a consistent image of CI and makes a major

contribution to CI customer satisfaction worldwide through its

excellence in strategic development, market intelligence, marketing

strategy, innovation management and internal and external

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communication. Our excellent marketing communication means we:

communicate according to target group specific information needs.

Provide comprehensive information on CI products and services.

Communicate a consistent image of CI and promote our unique selling

point both internally and externally.

b. CI Vision

We, as a business partner, drive operational excellence, shape

smart solutions and create competitive advantages for Bosch in the

digital world.

We inspire with best in class services

We innovate with an entrepreneurial mindset

We empower new business models and revenue streams

We are a diverse, agile and highly skilled team

CI. Connecting Bosch!

2. Bosch Connect

Bosch Connect is software developed by IBM and very closely

related to their own network called IBM Connections. Dr. Erik Wüstner

(personal communication on November 6th 2016) was able to confirm if he

presented the reasons why Bosch chose IBM for its new Social Business

Network. It was introduced to pilot departments in August 2012, with

more than 40.000 participating associates. They were using the platform in

selected international and sectorial use cases, to exchange knowledge, to

generate ideas and to work together more efficiently.

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In September 2013, ‘Bosch Connect’ was introduced at Bosch

worldwide, as an open and transparent working and collaboration platform

and to generate a more transparent, open and flexible organization,

available for all associates, partners and consumers. Everyone in the

company, who has access to the current system, called Bosch Global Net

(BGN), or the intranet, also was granted the access to Bosch Connect. The

BGN has been the single source for information until the introduction of

Bosch Connect. A discussion came up, if the BGN will be replaced by

Bosch Connect in the future, as an easier data handling system. The BGN

is a structures and official channel of the Bosch Group (inside.eLibrary of

Bosch 2015).

The goal of Bosch’s social business (Bosch Connect) is to generate

value through networking and better collaboration of employees. Social

networks are integrated to speed up business, gain real time insight and

compose better decisions. Only the future will tell, whether the platform

can hold what it promised. Continuous improvements have to be done, to

transform limitations into advantages.

By introducing Bosch Connect, the company also introduced the

term “Enterprise 2.0”, which means the company-wide use of social

software for cooperation, knowledge management, and connected

communication both internally and externally. Enterprise2.0 encourages

associates to share knowledge freely and, if used properly, can generate

added value for the company.” The aim of Bosch Group’s Enterprise 2.0 is

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to describe the change in a corporate culture towards more trust, openness

and transparency as a required perquisite to promote and demand the

exchange of knowledge across locations and organizational structures. It is

planned to develop leadership style to mentoring and coaching of

networked teams (inside.eLibrary of Bosch 2014).

A project group called “G40 Enabling Enterprise 2.0” was

established to introduce the concept of Enterprise 2.0 and connect the

company through the use of social media. The goals for the project were

announced as “Cooperate. Communicate. Create.” to increase flexibility,

enhance communication and cooperation among employees and with

consumers or stakeholder groups. Enterprise 2.0 enables a web-based

collaboration platform, with social media as a role model (inside.eLibrary

of Bosch 2014).

a. Functions of Bosch Connect

1) Community

To enable specific project work and the inter-unit and

interdisciplinary development of ideas, each community has its own

page on ‘Bosch Connect’ where all the information on the project is

presented transparently and made visible to everyone. As a source of

new ideas and strategies, the communities are non-hierarchical and

operate parallel to the existing structural organization at Bosch. In

certain cases, they may even develop into a "business in the business"

which integrates seamlessly into the company and opens up new

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business fields. Any associate can set up a community on Bosch

Connect. Anyone setting up a new community should do so in line

with the values and objectives of the company. It is important to define

a specific application and consider whether a new community would

be beneficial, or whether more added value would be achieved by

networking with an existing community. A community can also have

sub- communities, which deal with more specified topics than in the

more general “mother- community” (inside.eLibrary of Bosch 2014).

2) Forum

A forum is a board for an online discussion, where people ask

questions, share their experiences with others, benefit from the

expertise of other people and start discussions on a particular topic or

discuss solutions to common problems.

In Bosch Connect forums can be stand-alone for overall topics or

they can be assigned to a community. In a separate forum anyone can

publish a topic or comment on a topic. However, to access a

community forum the person has to be a member of the community.

(inside.eLibrary of Bosch 2014).

3) Wiki

A wiki is an information repository, to share objective information

e.g. about the community goals. The main characteristics of a wiki are:

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objective information (content is important, not the author), up-to-date

information and everybody can make changes. The wiki in Bosch

Connect has the same characteristics as any wiki in the web

(inside.eLibrary of Bosch 2014).

4) Blog

As mentioned earlier a blog is a journal to communicate thoughts

and ideas and getting feedback through comments. A blog can either

be in a community where all community members can blog or post

texts by a single person who wants to inform interested employees

about their new findings. At ‘Bosch Connect’ there is a second type of

blog called “ideation blog”. It is used to share ideas and let people vote

democratically on the best. Examples for ideation blogs are process

improvements, innovations for new products and new feature request

ideas for existing products or tools (inside.eLibrary of Bosch 2014).

5) Events/Activities

In the tool ‘activity‘ an overview of all the important tasks is

shown and can be managed efficiently by passing on activities,

documents, and other content. The tool ‘events’ is used to release

information about important events and date announcements relating to

the community (inside.eLibrary of Bosch 2014).

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6) Metrics

Managing online communities mostly comes down to analyzing

how the content you post is noticed by the viewers. The more

possibilities you have to analyze that, the more likely you will identify

what has the most potential of becoming an interesting post for your

followers (inside.eLibrary of Bosch 2014).

In the internet, Google Analytics is the most used and maybe the

most powerful tool to analyze visitors. With countless functions to

filter those analytics, it is almost guaranteed that you will find what

you are looking for. For example, seeing where your visitors came

from (mail, direct hit, search), from which country visitors access your

website or even which device they use to browse.

In Bosch Connect we have analytic software is called metrics. Metrics

is a Google Analytics-like analysis tool for Bosch Connect. It is not as

detailed as the internet solution by Google, but it was surprised how

much info you can actually get out of this extension. Metrics is only

available to community owners after requesting a role for your NT user

at the IT support. After the role was assigned to your user, Metrics will

show up in the community navigation on the left side menu of Bosch

Connect (inside.eLibrary of Bosch 2014).

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B. Result and Discussion

1. Respondents Characteristics

Respondents in this research were CI Marketing Department that were

distributed to 70 employees. Since all participants are employees of the

company, it is to be assumed, that everyone has very similar background

information about the study and the program itself.

a. General description of characteristic respondents by gender

From research conducted by the questionnaire distributing method

that send out within company internal email of consumers’ decision to

use social business platform “Bosch Connect” in the area of CI

Marketing Department Community into gender of the respondents as

follows:

Table 4.1

Characteristics of Respondents by Gender

Gender Total Percentage (%)

Male 38 54.3

Female 32 45.7

Total 70 100

Source: Processed Primary Data, 2016

Based on table 4.1, it can be clearly seen that the respondents in

this study showed about 38 people or about 54.3% of respondents are

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dominated by male gender and the remaining 32 people or about 45.7%

of female gender.

b. General Description of characteristics respondents by age

The respondents can be grouped as follows:

Table 4.2

Characteristics of Respondents by Age

Age Total Percentage (%)

20 – 35 years’ old 22 31.4

35 – 50 years’ old 33 47.2

>50 years’ old 15 21.4

Total 70 100

Source: Processed Primary Data, 2016

Table 4.2 illustrates the respondents by age. The age grup is

divided into 3 parts i.e 20 – 35 years old, 35 – 50 years old, and > 50

years old. Respondens were aged 35 – 50 years old dominate that as

much as 47.2%.

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c. General description of characteristics respondents by occupation

The occupation of the respondents can be grouped as follows:

Table 4.3

Characteristics of Respondents by Job

Occupation Total Percentage (%)

Senior Manager 10 14.3

Manager 12 17.1

Employee 38 54.3

Working Student 6 8.6

Intern 4 5.7

Total 70 100

Source: Processed Primary Data, 2016

Based on the table 4.3 can be seen that the rate of respondents who

are using Bosch Connect in CI Marketing Department area are

indicating their occupation as employee that as many as 38 people,

equivalent to 54.3% of the total. While employees are using Bosch

Connect because their exploration and instructed by their manager to do

the job on Bosch Connect such publish the data, news, information, and

etc.

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2. Descriptive Analysis

We have seen from the characteristics of respondents and the author

want to analyze the answer of questionnaires that have been spread out to

70 respondents who have knowledge and have been using Bosch Connect.

The analysis encompasses every statement of the questionnaires which

becomes the indicator of variable that is researched, and according to

George and Carl, 2013 by using interval theory can be measured whether

the variable is good or not. as follows:

a. Functional Value consist of several indicator, as follows:

In this research, the variable of functional value is measured by

seven indicators. The description of the result as follows:

Table 4.4

Indicator of Functional Value

No Indicator Empirical

Score

Ideal

Score

Percentage

(%)

Criteria

1 Easy

information

sharing

291 500 58,2 Good

2 Finding

expert

301 500 60,2 Good

3 Faster 292 500 58,4 Good

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problem

solving

4 Good

Quality

Performance

291 500 58,2 Good

5 Special

features

298 500 59,6 Good

6 User

friendly

212 500 42,4 Not

Good

7 Product is

rarely error

292 500 58,4 Good

Source: Primary Data Processed

Table 4.4 above, depict that each of the indicator shows that

easy information sharing (58,2%) , finding expert (60,2%), faster

problem solving (58,4%), good quality performance (58,2%),

special features (59,6%), product is rarely error (58,4%), while user

friendly (42,4%) is categorized as not good. It shows that by

improving bosch connect as user friendly will increase employees

to use Bosch Connect.

b. Emotional Value consist of several indicator, as follows:

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In this research, the variable of emotional value is measured by

three indicators. The description of the result as follows:

Table 4.5

Indicator of Emotional Value

No Indicator Empirical

Score

Ideal

Score

Percentage

(%)

Criteria

1 Relaxation 321 500 64,2 Good

2 User

intended for

entertainment

309 500 61,8 Good

3 Memorability 330 500 66 Good

Source: Primary Data Processed

Table 4.5 above, depict that each of the indicator shows that

Relaxation (64,2%) , user intended for entertainment (61,8%),

Memorability (66%) are categorized as good. It shows that all

indicators proof the emotional value can influence employees to

use Bosch Connect.

c. Consumer Decision consist of several indicator, as follows:

In this research, the variable of consumer decision is measured by

five indicators. The description of the result as follows:

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Table 4.6

Indicator of Consumer Decision

No Indicator Empirical

Score

Ideal

Score

Percentage

(%)

Criteria

1 Aware of the

difference

between current

and desire

communication

platform

284 500 56,8 Good

2 Collecting data

from internal and

external

321 500 64,2 Good

3 Platform is well-

known

303 500 60,6 Good

4 Determine

selection among

alternatives

322 500 64,4 Good

5 Satisfaction Level 300 500 60 Good

Source: Primary Data Processed

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Table 4.6 above, depict that each of the indicator shows that

Aware of the difference between current and desire communication

platform (56,8%) , Collecting data from internal and external

(64,2%), Platform is well-known (60,6%), Determine selection

among alternatives (64,4%), Satisfaction Level (60%) are

categorized as good. It shows that all indicators proof the consumer

decision to use Bosch Connect.

3. Data Quality Test Results

a. Validity Test Result

Validity test is used to measure whether a legal or valid

questionnaires. A questionnaire as valid if the questions in the

questionnaire were able to reveal something that will be measured by

questionnaire (Ghozali, 2011). Before the author spread out questionnaires

to the people firstky he author did tryout toward those statements in order

to know either how many statements that will be valid or invalid. The

author did tryout by spreading 20 questionnaires consisted of 15

statements.

According to Azwar in Priyatno (2013: 19) validity of the research

can be seen by doing direct assessment towards coefficient of correlation

and it can be done by using minimum amount of correlation is 0,30. The

score of correlation can be seen in the Corrected Item-Total Correlation

and the minimum amount to be identified as valid question is 0,30. Total

research sample is 70 people thus it can be concluded value of (df) = 70-2

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or value of df is 0,235. It can be said to be valid is r test > r table (Ghozali,

2011: 47).

Table 4.7

The Tryout Result of Validity Test

No Indicators

Corrected

Item-Total

Correlation

R Table Declaration

1 Functional Value 1 0.678 0.235 Valid

2 Functional Value 2 0.542 0.235 Valid

3 Functional Value 3 0.555 0.235 Valid

4 Functional Value 4 0.347 0.235 Valid

5 Functional Value 5 0.660 0.235 Valid

6 Functional Value 6 0.303 0.235 Valid

7 Functional Value 7 0.600 0.235 Valid

8 Emotional Value 1 0.532 0,235 Valid

9 Emotional Value 2 0.919 0,235 Valid

10 Emotional Value 3 0.919 0,235 Valid

11 Consumer Decision 1 0.755 0,235 Valid

12 Consumer Decision 2 0.755 0,235 Valid

13 Consumer Decision 3 0.457 0,235 Valid

14 Consumer Decision 4 0.597 0,235 Valid

15 Consumer Decision 5 0.636 0,235 Valid

Source: Primary Data Processed by SPSS 26.0

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b. Reliability Test Result

Reliability test shows how far a measurement can give the resukts that

are not different even if the re-measurement is done towatds the same

object. Tryout of reliability test uses Chronbach Alpha. According to

(Ghozali 2005:42), to look at reliability, variable Cronbach Alpha has a

value greater than 0.60. The table below shows the tryout results for each

variable in this study from several tables as follows:

Table 4.8

The Tryout Result of Functional Value

Reliability Statistics

Cronbach's

Alpha

N of Items

.649 7

Source: Primary Data Processed by SPSS 26.0

Table 4.8 shows the value of Cronbach’s Alpha of functional value

variable is 0.649 or 64.9% so it can be concluded that the statements in the

questionnaire are reliable because it has Cronbach’s Alpha value greater

than 0.6. Which means 0.649 > 64.9%.

Table 4.9

The Tryout Result of Emotional Value

Reliability Statistics

Cronbach's

Alpha

N of Items

859 3

Source: Primary Data Processed by SPSS 26.0

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Table 4.9 shows the value of Cronbach’s Alpha of functional value

variable is 0.859 or 85.9% so it can be concluded that the statements in the

questionnaire are reliable because it has Cronbach’s Alpha value greater

than 0.6. Which means 0.859 or 85.9%.

Table 4.10

The Tryout Result of Consumer Decision

Reliability Statistics

Cronbach's

Alpha

N of Items

.531 5

Source: Primary Data Processed by SPSS 20.0

Table 4.10 shows the value of Cronbach’s Alpha of Costumer

Decision variable is 0.605 or 60.5% so it can be concluded that the

statements in the questionnaire are reliable because it has Cronbach’s

Alpha value greater than 0.6. Which means 0.605 or 60.5%.

4. Test Result of Classical Assumption

1) Normality Test Results

Normality test is used to test whether a regression model, the

dependent variable and the independent variables or both have a normal

distribution or not. The result of normality data test using Kolmogorov-

Smirnov test is shown in the following table:

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Table 4.11

One-Sample Kolmogorov-Smirnov Test

Unstandardized Residual

N 70

Normal Parametersa,b

Mean 0E-7

Std. Deviation 1.75885963

Most Extreme Differences

Absolute .067

Positive .055

Negative -.067

Kolmogorov-Smirnov Z .560

Asymp. Sig. (2-tailed) .913

a. Test distribution is Normal.

b. Calculated from data.

Source: Primary Data Processed

Based on the result of Kolmogrov-Smirnov test, the value of

Asymp Sig (2-tailed) is 0.913 and its value is bigger than significant level

of 0.05. According to (Priyatno 2012, p.38), if significant value (Asym

Sig 2 tailed) < 0.05, data is not normally distributed. Therefore, it can be

conclude that the data is normal distributed.

According to (Ghazali 2011, p.160) good data is data that has a

normal distribution pattern or distribution of the data is not to the left or to

the right. Regression mode is both data distribution normal or near

normal.

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Figure 4.1

Normality Test Result Using P-Plot Graph

Source: Primary Data Processed by SPSS 26.0

Figure 4.2

Normality Test Result Using the Histogram Chart

Source: Primary Data Processed by SPSS 26.0

Figure 4.1 shows that the data are spread around the diagonal line

and follow the direction of the diagonal line, and Figure 4.2 also shows a

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histogram chart shows that the regression models to meet the

assumptions of normality. This graph is absolutely dominated

respondents that the statements on the variables have the same

assumption on such a scale.

Caused also by the uniformity of the respondents after the

respondent answer inputted into SPSS and SPSS output as in probability

plot and histogram chart with the distribution if the above but still

normally distributed.

2) Multi-Collinearity Test

This test aims to test whether in the regression models correlation

is found between the independent variable. A good regression models

should have no correlation between the independent variable.

According to Imam Ghozali (2005: 91), the cut off value that is

commonly used to show the multicollinearity is tolerance value >0.10 or

equals to value VIF <10. To see multicollinearity test results, it can be

viewed in the following table:

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Table 4.12

Multicollinearity

Coefficientsa

Model Unstandardiz

ed

Coefficients

Standardiz

ed

Coefficient

s

T Sig. Collinearity

Statistics

B Std.

Error

Beta Tolerance VIF

1

(Constant) 2.623 2.062 1.278 .206

FUNCTIONAL

VALUE .094 .066 .124 1.420 .160

.796 1.256

EMOTIONALV

ALUE .456 .096 .538 4.740 .000

.796 1.256

Source: Primary Data Processed by SPSS 26.0

Based on the result above, the value of VIF for functional value is

1,256, and the value of VIF for emotional value is 1,256. It can be seen

that the value of VIF (Variance Inflation Factor) for all independent

variables is less than 10.

The value of Tolerance for functional value is 0,796, and the value

of Tolerance for emotional value is 0,796. The value of Tolerance for all

independent variable is also bigger than 0,10.. Thus, it can be concluded

that there is no multicollinearity among the independent variables in the

regression model and can be used in research.

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3) Heteroscedasticity Test result

Heteroscedasticity test conducted to test whether a regression

model of the residual variance occurs inequality an observation to

observation others. Detection of the presence or absence

heteroscedasticity done by looking at the presence absence of certain

patterns between SRESID scatterplot chart consumer decision (Y) and

ZPERD (X) are shown in Figure 4.3.

Figure 4.3

Heteroscedasticity Test

Source: Primary Data Processed by SPSS 26.0

From the Scatter plot diagram in figure 4.3 above, it can see that

the dots are spread widely, below and above, or in other words, it is not

grouping in one side only but in both sides. The dots alsp have no pattern.

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Thus, it can be concluded that this data are free from heteroscedasticity

problem.

5. Hypothesis Test Results

Hypothesis testing is done using multiple regression analysis

models namely:

a. The Results of T-Test Statistics

T test basically showed significant or not affect one (1) individual

independent variable on the dependent variable. This test is performed

with a significance level α = 0.05. The test results are as follows:

Table 4.13

T-Test Statistics

Model Unstandardized

Coefficients

Standardized

Coefficients

T Sig.

B Std.

Error

Beta

1

(Constant) 2.632 2.062 1.278 .206

FUNCTIONALVA

LUE .094 .066 .124 1.420 .160

EMOTIONALVAL

UE 1.209 .149 .707 8.115 .000

Dependent Variable: Y

Source: Primary Data Processed

According to the table 4.13, it can be seen that the variable of

functional value has no significant value of 0.160 which is bigger than

0.05 (0.160 > 0.05) and also has t count of 1.420 which is less than t

table 1.670. Hence, it can be interpreted that the functional (X1) partially

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no significant effect on consumer decision (Y) which means that H1 is

rejected. This result is consistent with the research regarding “what value

do users drive from social networking application” was done by Larry

Nelae and Rebekah Russel-Bennett, 2009. That stated if functionality is a

must, but however functionality is not influence enough. It must be

combined with either social or emotional value to create the feeling of

“coolness” that given user to recommend an application to their friends.

The variable emotional value of 0.000 which is less than 0,05 (0.000

< 0.05 ) and also has t count of 8.115 which is greater than t table of

1.670 (8.115 > 1.670). Hence, it can be interpreted that the emotional

value (X2) partially positive and significant effect the consumer decision

(Y) which means that H2 is accepted. The result is consistent with the

previous research within Bosch regarding “Usability of social business

“Bosch Connect” toward purchasing department” was done by Nicola

Abend, 2012. The result stated if the consumer (employees) use social

business Bosch Connect because it’s emotional value.

b. The Results of F-Test Statistic

F-test statistics used to determine the influence of all the

independent variables included in the regression models

simultaneously on the dependent variable were tested at the 0.05

level. The F-test results can be seen in Table 4.14:

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Table 4.14

F-Test Statistics

ANOVAa

Model Sum of

Squares

Df Mean Square F Sig.

1

Regression 313.114 2 156.557 49.140 .000b

Residual 213.458 67 3.186

Total 526.571 69

a. Dependent Variable : CONSUMER DECISION

b. Predictors : (Constant), EMOTIONAL VALUE, FUNCTIONAL

According to the table above for simultaneously testing the

hypothesis that the value of F 49.140> F 0,05 and level of significance of

0.000 <0.05 can thus be said that the emotional value and functional

simultaneously positive effect and significant impact on consumer

decision to use social business Bosch Connect which means the H3 is

accepted. This result is consistent with the previous research regarding

“Why People Use Social Media Platforms: Exploring the Motivations

and Consequences of Use” done by Petri Hallikainen 2006 that users

would use social media influenced by functional, emotional value and

other values which are not calculated in this research.

6. Multiple Linear Regression Test

a. Regression Equation

Technique of analysis that has been used in this research is the

multiple linear regression. Analysis of multiple linear regression is used as

the analysis tools of statistics because this research has been designed to

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research the variables which have influence among independent variables

and dependent variable. Regression equation can be determined by seeing

the table 4.11 below:

Table 4.15

The Result of Multiple Linear Regression

Model Unstandardized

Coefficients

Standardized

Coefficients

t Sig.

B Std.

Error

Beta

1

(Constant) 2.636 2.062 1.278 .206

FUNCTIONAL

VALUE .094 .066 .124 1.420 .160

EMOTIONALV

ALUE 1.209 .149 .707 8.115 .000

According to the table 4.15, the regression equation model is obtained

as follow:

Y = 2.636+ 0.094X1 + 1.209X2 + e

Y = Consumer decision to use Bosch Connect

X1 = Functional Value

X2 = Emotional Value

From the equation above, it can be concluded that a constant value is

2.636. It implies that if Functional Value X1, and Emotional Value X2 are

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held constant, so the dependent variable for consumer decision to use

Bosch Connect is 2.636.

The regression equality shows that the regression coefficient of

variable functional value is positive. It means, there is a positive

relationship between functional value and consumer decision.

The regression equality shows that the regression coefficient of

variable emotional value is positive. It means, there is a positive

relationship between emotional value and consumer decision.

b. Determination Coefficient (Adjusted R2)

The test results can be seen in the coefficient of determination

column Adjusted R Square, where the value of the coefficient of

determination is between zero and one are shown in the following table:

Table 4.16

(Coefficient of Determination Test Results)

Model Summaryb

Model R R Square Adjusted R Square Std. Error of the Estimate

1 .771a .595 .583 1.785

a. Predictors: (Constant), Functional Value, Emotional Value

b. Dependent Variable: Consumer Decision

Source: Processed primary data by SPSS 26.0

From the coefficient determination table 4.16 above, the adjusted R

square number is 0.595 Or 59.5 %. It means all of independent variable

like functional value and emotion value toward consumer decision

have significant influence of 59.5 %. Thus, the residual coefficient,

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around 0.405 or 40.5% (1 — 0.405) will be explained by the other factors

that is not calculated in this research.

7. Analysis

a. Functional Value (X1)

The hypothesis test result shows that the functional value is not

significantly influence to the consumer decision to use social business

Bosch Connect. It can be seen in the significant value of t test as amount

0.160. This could happen might because Bosch company has others

communication platform that are more useful for employees, and the

characteristics such as gender and age of the employees are also might

influence their decision to use social business bosch connect.

b. Emotional Value (X2)

The hypothesis test result shows that the emotional value is

significantly influence to the consumer decision to use social business

Bosch Connect. It can be seen in the significant value of t test as amount

0.000. This could happen because the employees of CI Marketing

Department are really fancy, powerful, and creative as they also adapt

Next Generation Workplaces (NGW) project that influenced them to use

Bosch Connect because they can share their information and even play

around with their creativity.

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CHAPTER V

CONCLUSION AND SUGGESTION

A. Conclusion

Based on the result of this research on the variables that influence the

consumer decision to use Bosch Connect platform by using the variable

functional value, and emotional value, the conclusions are as follows:

1. Based on statistics test, the result of t test on the significant level 0,05

explain that the variable of this research such as functional value partially

do not influence toward dependent variable that is consumer decision to use

Bosch Connect platform. While, variable of emotional value have partially

influence consumer decision to use Bosch Connect platform.

2. Based on statistics test, the result of f test analysis shows that all

independent variables of this research such functional value, emotional

value have simultaneously influenced the consumer decision to use Bosch

Connect with significant less than 0,05.

3. Based on questionnaires result, the indicator of “user friendly” stated that

most employees are not agreeing if Bosch Connect is user friendly.

4. The most dominant independent variable is emotional value that influenced

consumer decision to use social business Bosch Connect.

B. Suggestion

Based on the conclusion above, the suggestion of this research can be stated as

follows:

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1. For the Company:

The test result show that functional value have partially influenced

towards consumer decision to use Bosch Connect but emotional value

have more dominant influenced the consumer decision to use Bosch

Connect. Therefore, the company should consider functional value

variable and to take decision whether to continue the E2.0 project and

using appropriate marketing strategy to increase the users to use Bosch

Connect as communication platform or end the project. This can be

achieve by doing several things, as follows:

a. Based on the data that has been acquired, Bosch Connect has good

enough because employees can use it for find information and share

knowledge to Bosch employees worldwide but Bosch Connect team

also have to take consider about its functionality whether the function is

user friendly, and easy to use.

b. Based on the data has been acquired, most of employees have agreed

that Bosch Connect has good design as the team project always

improve the design as the latest version looks like Facebook. Obtaining

the label of good design can influence the reason of consumer to use

Bosch Connect as their communication platform but not their main

communication platform.

c. Based on the data has been acquired, most of employees have not agree

if Bosch Connect is user friendly. Therefore, Bosch Connect team have

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to take consider its usability to be more user friendly such what features

needs to have, which button and link should exist and where they

should be placed and the important thing is Bosch Connect should not

created to homogenous group, it should be user friendly for employees

who know HTML or neither. Improve its usability will influence

employee to move from BGN and use social business Bosch Connect.

d. Therefore, Bosch Connect teams still need some improvement with the

good concept because the good design is not the only one reason that

influenced consumers to use Bosch Connect. Eventually, the good

communication platform can be created by creating a platform that has

functional value and emotional value

2. For Readers:

Based on the result from questionnaires that has been acquired, the

author can be said that the result is more dominating in emotional value,

this could happen because the employees of CI Marketing Department are

really fancy, powerful, and creative as they also adapt Next Generation

Workplaces (NGW) project but we also need to help Bosch Connect team

to improve social business Bosch Connect as follows:

a. Support their project to make transparent within Bosch employees by

using social business Bosch Connect.

b. Support their project such open a forum in CI Global Community and

getting feedback from members e.g. Which function that they expect of

Bosch Connect? And not mention about the design because based on

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the result of this research, Bosch Connect team have successfully

improve the design, thus they don’t need to improve it anymore.

c. Support their project by still using and keep update promotion such as

CI News, Tip of the Week, Training and etc in social business Bosch

Connect and spread the word to use Bosch Connect to make more

transparent between Bosch employees or even board management.

3. For Researcher

This research is not only to complete my bachelor degree in

International Management at UIN Jakarta, but also for gained and apply

knowledge and experience that author have during study in Indonesia and

Germany.

C. Limitations and Recommendation

The limitations of this research are:

1. The variables of this research are only limited to Functional and Emotional

value therefore the author does not consider on the other variables such

social, epistemic and conditional value that might influence the consumer

to use social business Bosch Connect.

2. The respondent of this research is only limited for CI Marketing

Department. Therefore, the author suggests in the future the coverage of

respondent should be enlarged to some department in order to get

accurately data.

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REFERENCES

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Result of Functional Value(X1)

No Q1 Q2 Q3 Q4 Q5 Q6 Q7 SUM

1 4 4 4 4 4 5 1 26

2 4 4 4 2 2 4 1 21

3 4 3 5 1 1 4 5 23

4 4 5 4 5 4 4 4 30

5 5 5 4 4 4 4 4 30

6 5 5 5 5 5 5 5 35

7 4 4 4 5 4 5 4 30

8 5 5 4 5 4 5 4 32

9 4 4 5 1 5 4 5 28

10 5 5 5 5 5 5 3 33

11 4 5 5 5 4 4 5 32

12 4 5 5 5 4 4 3 30

13 4 4 4 5 4 5 5 31

14 4 4 4 5 4 4 1 26

15 4 4 4 4 4 4 1 25

16 4 4 4 4 4 4 4 28

17 4 4 4 5 4 5 4 30

18 4 4 5 5 5 4 4 31

19 4 4 4 4 4 4 4 28

20 1 4 4 4 5 5 3 26

21 4 4 4 4 4 4 3 27

22 4 4 4 5 4 4 1 26

23 4 4 5 4 4 5 1 27

24 4 4 4 5 4 4 3 28

25 4 4 4 5 3 5 3 28

26 3 3 5 4 5 4 3 27

27 5 5 4 5 3 4 3 29

28 3 3 4 4 5 5 3 27

29 3 3 4 4 5 4 3 26

30 3 3 4 4 3 4 3 24

31 5 5 5 4 5 4 1 29

32 3 3 4 4 3 4 3 24

33 3 3 4 5 3 4 1 23

34 3 3 4 5 3 4 3 25

35 5 5 5 4 5 5 3 32

36 5 5 4 5 3 5 3 30

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37 3 3 3 4 3 4 3 23

38 3 3 5 4 3 5 3 26

39 3 3 3 5 3 5 3 25

40 3 3 5 5 5 5 3 29

41 3 3 3 4 3 4 3 23

42 5 5 3 4 5 3 2 27

43 3 3 3 4 3 3 2 21

44 1 4 3 3 3 3 2 19

45 5 5 5 3 3 3 2 26

46 3 3 5 3 5 3 2 24

47 5 5 3 5 5 3 1 27

48 5 5 3 3 5 3 2 26

49 5 5 5 3 5 3 4 30

50 5 5 3 3 5 3 4 28

51 5 5 3 3 5 3 4 28

52 5 5 3 3 5 3 1 25

53 5 5 3 3 5 3 3 27

54 5 5 3 3 5 3 3 27

55 5 5 3 3 5 3 3 27

56 5 5 5 3 5 5 3 31

57 2 4 3 3 5 5 3 25

58 5 5 5 3 5 2 3 28

59 5 5 5 5 5 3 4 32

60 5 5 5 5 5 5 4 34

61 5 5 5 5 5 5 4 34

62 5 5 2 5 5 5 4 31

63 5 5 5 5 5 5 3 33

64 5 5 5 5 5 5 3 33

65 5 5 5 5 5 5 3 33

66 5 5 5 5 5 5 3 33

67 5 5 5 5 5 5 3 33

68 5 5 5 5 5 5 3 33

69 5 5 5 5 5 5 5 35

70 5 5 5 5 5 5 4 34

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Result of Emotional Value (X2)

No Q1 Q2 Q3 SUM

1 1 1 1 3

2 2 2 2 6

3 5 5 5 15

4 4 4 4 12

5 4 5 5 14

6 5 4 4 13

7 5 5 5 15

8 5 4 4 13

9 4 5 5 14

10 5 5 5 15

11 5 4 4 13

12 5 3 3 11

13 5 4 4 13

14 5 3 3 11

15 4 4 4 12

16 4 4 4 12

17 3 2 2 7

18 5 4 4 13

19 4 4 4 12

20 5 5 5 15

21 4 4 4 12

22 5 5 5 15

23 4 4 4 12

24 5 4 4 13

25 4 2 2 8

26 4 4 4 12

27 4 5 5 14

28 4 4 4 12

29 4 4 4 12

30 4 4 4 12

31 4 5 5 14

32 3 2 2 7

33 5 5 5 15

34 3 2 2 7

35 3 4 4 11

36 5 3 3 11

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37 3 3 3 9

38 5 3 3 11

39 5 3 3 11

40 3 5 5 13

41 3 5 5 13

42 3 5 5 13

43 5 3 3 11

44 5 3 3 11

45 3 3 3 9

46 3 3 3 9

47 3 5 5 13

48 3 3 3 9

49 3 3 3 9

50 3 3 3 9

51 3 3 3 9

52 3 5 5 13

53 3 3 3 9

54 3 3 3 9

55 3 3 3 9

56 3 3 3 9

57 5 3 3 11

58 5 5 5 15

59 5 5 5 15

60 5 5 5 15

61 5 5 5 15

62 5 5 5 15

63 5 5 5 15

64 5 5 5 15

65 5 5 5 15

66 5 5 5 15

67 5 5 5 15

68 5 5 5 15

69 5 5 5 15

70 5 3 3 11

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Result of Consumer Decision (Y)

No Q1 Q2 Q3 Q4 Q5 SUM

1 1 1 1 1 1 5

2 2 2 2 1 4 11

3 5 5 5 1 4 20

4 4 4 4 5 5 22

5 4 4 5 5 5 23

6 5 5 4 5 5 24

7 5 5 5 5 5 25

8 5 5 4 5 5 24

9 4 4 5 4 4 21

10 5 5 5 5 5 25

11 5 5 4 5 5 24

12 5 5 3 4 5 22

13 5 5 4 5 4 23

14 5 5 3 5 5 23

15 4 4 4 4 5 21

16 4 4 4 4 4 20

17 3 3 2 3 4 15

18 5 5 4 4 4 22

19 4 4 4 4 4 20

20 5 5 5 3 4 22

21 4 4 4 4 4 20

22 5 5 5 1 5 21

23 4 4 4 3 4 19

24 1 5 4 3 5 18

25 1 4 2 1 5 13

26 1 4 4 1 4 14

27 1 4 5 3 5 18

28 1 4 4 3 5 17

29 1 4 4 3 5 17

30 1 4 4 1 4 14

31 1 4 5 3 4 17

32 3 3 2 1 4 13

33 1 5 5 1 4 16

34 3 3 2 1 3 12

35 3 3 4 3 5 18

36 1 5 3 1 3 13

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37 3 3 3 1 3 13

38 1 5 3 3 5 17

39 1 5 3 1 5 15

40 3 3 5 1 5 17

41 3 3 5 3 3 17

42 3 3 5 1 3 15

43 1 5 3 3 3 15

44 1 5 3 3 5 17

45 3 3 3 3 3 15

46 3 3 3 3 3 15

47 3 3 5 3 3 17

48 2 3 3 3 3 14

49 2 3 3 3 3 14

50 2 3 3 4 3 15

51 2 3 3 2 3 13

52 2 3 5 2 3 15

53 2 3 3 2 3 13

54 2 3 3 2 3 13

55 2 3 3 2 3 13

56 2 3 3 3 5 16

57 1 5 3 3 5 17

58 1 5 5 2 2 15

59 1 5 5 2 2 15

60 1 5 5 2 2 15

61 1 5 5 2 2 15

62 1 5 5 2 4 17

63 1 5 5 2 3 16

64 1 5 5 3 3 17

65 1 5 5 3 2 16

66 1 5 5 2 2 15

67 1 5 5 2 2 15

68 1 5 5 3 1 15

69 1 5 5 4 1 16

70 1 5 3 5 1 15

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Validity and Reliability Tests

The Result of Validity Test

No Indicators

Corrected

Item-Total

Correlation

R Table Declaration

1 Functional Value 1 0.678 0.235 Valid

2 Functional Value 2 0.542 0.235 Valid

3 Functional Value 3 0.555 0.235 Valid

4 Functional Value 4 0.347 0.235 Valid

5 Functional Value 5 0.660 0.235 Valid

6 Functional Value 6 0.303 0.235 Valid

7 Functional Value 7 0.600 0.235 Valid

8 Emotional Value 1 0.532 0,235 Valid

9 Emotional Value 2 0.919 0,235 Valid

10 Emotional Value 3 0.919 0,235 Valid

11 Consumer Decision 1 0.755 0,235 Valid

12 Consumer Decision 2 0.755 0,235 Valid

13 Consumer Decision 3 0.457 0,235 Valid

14 Consumer Decision 4 0.597 0,235 Valid

15 Consumer Decision 5 0.636 0,235 Valid

Source: Primary Data Processed by SPSS 26.0

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The Result of Functional Value

Reliability Statistics

Cronbach's

Alpha

N of Items

.649 7

Source: Primary Data Processed by SPSS 26.0

The Result of Emotional Value

Reliability Statistics

Cronbach's

Alpha

N of Items

859 3

Source: Primary Data Processed by SPSS 26.0

The Result of Consumer Decision

Reliability Statistics

Cronbach's

Alpha

N of Items

.531 5

Source: Primary Data Processed by SPSS 26.0

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Characteristics of Respondents

Characteristics of Respondents by Gender

Gender Total Percentage (%)

Male 38 54.3%

Female 32 45.7%

Total 70 100%

Source: Processed Primary Data, 2016

Characteristics of Respondents by Age

Age Total Percentage (%)

20 – 35 years’ old 22 31.4

35 – 50 years’ old 33 47.2

>50 years’ old 15 21.4

Total 70 100%

Source: Processed Primary Data, 2016

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Characteristics of Respondents by Job

Occupation Total Percentage (%)

Senior Manager 10 14.3%

Manager 12 17.1%

Employee 38 54.3%

Working Student 6 8.6%

Intern 4 5.7%

Total 70 100%

Source: Processed Primary Data, 2016

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Test Result of Classical Assumption

Normality Test Results

One-Sample Kolmogorov-Smirnov Test

Unstandardized Residual

N 70

Normal Parametersa,b

Mean 0E-7

Std. Deviation 1.75885963

Most Extreme Differences

Absolute .067

Positive .055

Negative -.067

Kolmogorov-Smirnov Z .560

Asymp. Sig. (2-tailed) .913

a. Test distribution is Normal.

b. Calculated from data.

Source: Primary Data Processed

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Normality Test Result Using P-Plot Graph

Source: Primary Data Processed by SPSS 26.0

Heteroscedasticity Test

Source: Primary Data Processed by SPSS 26.0

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The Result of Multiple Linear Regression

Model Unstandardized

Coefficients

Standardized

Coefficients

t Sig.

B Std.

Error

Beta

1

(Constant) 2.636 2.062 1.278 .206

FUNCTIONAL

VALUE .094 .066 .124 1.420 .160

EMOTIONALV

ALUE 1.209 .149 .707 8.115 .000

(Coefficient of Determination Test Results)

Model Summaryb

Model R R Square Adjusted R Square Std. Error of the Estimate

1 .771a .595 .583 1.785

a. Predictors: (Constant), Functional Value, Emotional Value

b. Dependent Variable: Consumer Decision

Source: Processed primary data by SPSS 26.0