Consumer Preference on Choosing Branded Bag
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International Journal of Research and Review
Vol.8; Issue: 3; March 2021
Website: www.ijrrjournal.com
Research Paper E-ISSN: 2349-9788; P-ISSN: 2454-2237
Consumer Preference on Choosing Branded Bag
Amanda Putri Kusumawardhani1, Ujang Sumarwan2, Diah Krisnatuti2
1
School of Business, IPB University, Jl Padjajaran, Bogor, Indonesia 16151
2
Department of Family and Consumer Science, Faculty of Human Ecology, IPB University, Jl Agatis, IPB
Dramaga Campus Bogor, Indonesia 16680
Corresponding Author: Amanda Putri Kusumawardhani
ABSTRACT 2017, which is an online platform for
buying and selling branded goods, there are
Branded bag become fashion trend in Indonesia 10 brands from international fashion
and everyone can find a lot of international designers which popular in Indonesia. The
designer bag around us therefore, analyzing the survey was issued in the form of a report in
factors of costumer preference on choosing
the form of Reboonz Asia Luxury Index, the
branded bag become important to study. The
purpose of this research is to analyze how do results of the survey showed that the brands
reference groups, attitude, social status, place, Chanel, Louis Vuitton, Hermes, Balenciaga,
price, and product quality affect branded bag Gucci, Saint Laurent, Prada, Fendi, Tory
choosing preferences. Consumer Preference is Burch, Salvatore Feragamo are the top 10
preferences or the choice of several alternative brands in Indonesia.
choices that are formed from consumer According to the survey by Reebonz,
perceptions of the product. The data in this which is presented in the Reebonz Asia
research were collected by distributing Luxury Index 2016. Purchasing of luxury
questionnaires online to respondents throughout goods is maintained at a steady momentum
Indonesia, the respondent should have one or in 2015, then Asian consumers spend on
more than one kind of branded bag researched
luxury goods and it grows by 50 percent
in this research (Kate Spade, Michael Kors,
Coach, Longchamp, and Tory Burch). The from 2014 to 2015. Based on sales figures
method used to measure the customer According to the Reebonz Asia Luxury
preference is multiple linear regression, logistic Index 2016 consumer spending on shoes
regression and cross tabulation analysis with increased by 87 percent, followed by bags at
164 sample. The result are R value is 82.3 % 56 percent and watches by 39 percent.
and d R Square value is 67.8% and shows that Comparatively, the number of transactions
reference group, place, price and product quality made by consumes grew by 64 percent for
affect customer preference of purchasing shoes, 54 percent for bags and 42 percent
branded bag while attitude do not affect for watches.
customer preference of choosing branded bag. According to research by (Wilcox et
al 2009) the consumption of luxury branded
Keywords: branded bag, preference, product
quality, reference group, social status fashion is largely determined by social
function attitudes (namely attitudes of self-
INTRODUCTION expression and self-presentation attitudes).
Nowadays branded goods are According to research (Nueno et al, 1998)
becoming more affordable to more consumers in Western and Eastern cultures
consumers, especially middle-class try to buy luxury brands to promote
consumers who have made more money individuality and individual social standing.
(Hauck et al, 2007). Indonesia is one of the In Indonesia itself, there are many fashion
markets for branded goods. According to a brands such as bags designed by
survey from Reboonz Asia Luxury Index international designers in circulation, these
International Journal of Research and Review (ijrrjournal.com) 637
Vol.8; Issue: 3; March 2021Amanda Putri Kusumawardhani et.al. Consumer preference on choosing branded bag.
brands have been widely used by the wider group according to Sumarwan (2018) is an
community and are easily found throughout individual who significantly affects a
Indonesia. Examples of fashion brands such person's behavior and place is part of the
as bags by international designers are marketing mix, which is something that
Coach, Michael Kors, Tory Burch, Kate affects the distribution of products from
Spade, and Longchamp. producers to consumers (Mursid 2003).
According to a survey from Google Meanwhile, consumer attitudes are an
Trends in 2019 about the comparison of important factor that influences consumer
popularity of 5 bag brands that are classified decisions (Sumarwan, 2018) and the results
as branded bags by famous designer bags. of Faizah's (2014) research show that the
The comparative survey was conducted higher the influence of attitudes, the higher
using data from Google Trends in 2019. consumer preferences. Then, research
From the comparison on Google Trends, the (Wilcox et al; 2009) that brands that are
Coach brand ranks first compared to 4 other classified as luxury determine the ability
brands, which means that internet users in and show the social goals of self-expression
Indonesia have a high interest in the Coach and self-presentation and according to
brand. The high interest in branded bags is Sjarkawi (2008) social status is a person's
certainly one of the opportunities for the place in general in society that relates to
circulation of replica or fake quality branded other people. Then the results of research
bags. According to a survey from the OECD (Aral et al; 2013) state that the higher the
which is the Organization for Economic effect of price, the higher the influence of
Cooperation and Development in "Trends In consumer preferences, price is an element of
Trade in Counterfit and Pirated Goods" in the marketing mix that can be controlled by
2016, it shows that leather goods products the company Sumarwan (2018). Then,
have a proportion of 13 percent of the total research (Agustina et al; 2017) shows that
number of goods that are most the better the product quality, the higher the
counterfeited. consumer preference, the product quality is
In a report released by the OECD in the customer's perception of the quality or
2016, it was explained that the countries that general advantages of a product or service
had the effect of counterfeiting goods were (Kotler et al; 2009).
the United States as much as 23 percent, Branded bags with replica quality
then France as much as 17 percent, Italy 17 are not difficult to find in Indonesia. The
percent, Switzerland 11 percent, and presence of these replica bags can be a
Germany as much as 9 percent. This country threat to the sales of branded bags in
is the country of origin of the brands that Indonesia. However, the presence of replica
will be examined in this study, in that report bags in Indonesia has not stopped the sale of
explained that counterfeiting of leather original branded bags in shops and shopping
goods is as much as 13 percent, which centers in Indonesia. In a study (Penz et al;
indicates that counterfeiting of branded bags 2008) which discusses original and replica
is commonplace due to the high interest in brand competition, it is explained that by
these industries. using original goods, consumers feel that
Assael (1992) explains that they are guaranteed safety and quality
consumer preferences can be preferences, assurance. Michael Mors, Longchamp, and
the choice of several alternative choices that Tory Burch which are categorized as
are formed from consumer perceptions of accessible luxury according to (Segura,
the product. Preference is influenced by 2017) by using a sociocultural approach to
several variables, such as the results of fashion products with the theory from
research by Efendi (2019) which states that Maslow (1943) about the hierarchy of
reference groups and places have an effect needs. Research that discusses consumer
on consumer preferences. The reference preferences in the selection of branded bags
International Journal of Research and Review (ijrrjournal.com) 638
Vol.8; Issue: 3; March 2021Amanda Putri Kusumawardhani et.al. Consumer preference on choosing branded bag.
has not been widely carried out, therefore influence of the reference group is divided
this research is interesting to study in order into three, there are normative influence,
to provide an overview of consumer informative influence, and value expression
preferences in choosing branded bags. effect. Then, attitude is an expression of a
Based on this, the purpose of this study is to consumer's feelings about an object whether
analyze the influence of reference groups, it is liked or not, and attitude also describes
attitudes, places, prices, and product quality a consumer's belief in the various attributes
on consumer preferences in the selection of and benefits of the product (Sumarwan,
branded bags, and formulate managerial 2017). According to Soekanto (2007), social
implications for brands and branded bag status is a place for a person in general to
distributors. relate to other people, relationships with
other people in the social environment,
LITERATURE REVIEW prestige and rights and obligations. Place is
Consumers buy branded goods part of the marketing mix, which is
primarily for reasons symbolic to reflect something that affects the distribution of
their status and social goals (Wilcox et al. products from producers to consumers
2009). Branded goods are generally seen as (Mursid 2003). Price is one element of the
wants and not needs, usually associated as a marketing mix that can be controlled by the
way to show luxury, regardless of price company, setting the price of a product is
(Atwal 2009). Although branded goods are one of the company's strategic decisions that
characterized by premium quality, legacy of must be made appropriately because the
craftsmanship, recognizable style, premium price will determine product sales as well as
price, uniqueness and prominence (Bian affect company revenue (Sumarwan, 2018).
2011). Consumers buy branded goods Product quality is the customer's perception
primarily for reasons symbolic to reflect of the general quality or superiority of a
their status and social goals (Wilcox et al. product or service with attention to the
2009). objectives of the product or service
According to Assael (1992) compared to other alternatives (Kotler &
consumer preferences can be preferences, Keller, 2009).
choices or something that consumers prefer
and this preference is formed from METHODS
consumer perceptions of the product. This research was conducted
Meanwhile, according to (Mappiare 1994) throughout Indonesia from June to August
the definition of preference is a mental 2020. Data was obtained by distributing
device consisting of a mixture of feelings, questionnaires to informants who were able
expectations, conviction, prejudice, fear or to provide information about research
other tendencies that lead individuals to a online. The criteria required are that the
particular choice. Results of research by respondent must own and have purchased
Djerv et al. (2012) regarding brand one or more branded bags (Kate Spade,
preferences in the smart phone market in Michael Kors, Tory Burch, Coach, and
Sweden draw a conclusion that proves the Longchamp). The selection of respondents
opinion of Kotler (2003), namely that the in this study used a non-probability
difference between a brand and another sampling approach because of the unknown
brand is due to the strength of the brand and population and sampling frame. The non-
a lower preference for a brand due to probability method used is snowball
differences in awareness and knowledge sampling. The snowball sampling method is
from consumers in Sweden. a sampling method for selecting,
Sumarwan (2017) explain that a identifying, and taking samples in a chain of
reference group is an individual who networks or relationships. The number of
actually affects a person's behavior. The
International Journal of Research and Review (ijrrjournal.com) 639
Vol.8; Issue: 3; March 2021Amanda Putri Kusumawardhani et.al. Consumer preference on choosing branded bag.
samples based on the snowball sampling descriptive analysis was obtained from
method was 164 samples. respondents 'answers by giving a percentage
The variables used in this study are of respondents' answers. Furthermore, to
(1) independent variable X) based on six analyze the relationship between reference
variables including Reference Group (X1), group variables, attitude, place, social
Attitude (X2), Place (X3), Social Status status, price, and product quality to
(X4), Price (X5), and Product Quality ( X6), consumer preferences in the selection of
and (2) the dependent variable or (Y) branded bags is to use multiple linear
consumer preferences (Y). The regression method,
questionnaire used to collect data in this Yi = β0 + β1.Xi1 + β2.Xi2 + β3.Xi3 +
study uses a Likert scale (scale 1-5) where β4.Xi4 + β5.Xi5 + β6.Xi6 + εi
each item of the question will be weighted Information:
to get an objective value, for the Likert scale Yi : Dependent Variable for i, i = 1,2, …,n
measurement itself is in details 1 (strongly (Consumer Preference)
disagree) 2 (disagree) 3 (neutral) 4 (agree) 5 β , β1 , β2 , β3, β5, β6 : Parameter
(strongly agree) The determination of the Xi1 : Reference Group
scale range is based on getting a wider Xi2 : Attitudes
value. Xi3 : Place
Xi4 : Social Status
Xi5 : Price
Xi6 : Product Quality
εi : The remaining error for the ith
observation is assumed to be normally
distributed, independent of each other, and
identical with a mean of 0 (zero) and
variance σ ^ 2
RESULT
The results showed that the
respondents' ages ranged from 20-50 years,
domiciled in Indonesia, are at the D3 to S2
education levels, work as private
employees, civil servants, BUMN
employees, doctors, and entrepreneurs, and
have an income ranging from 5 -30 million
per month.
Table 1. Descriptive Analysis
No Variable Mean Score Category
1 Reference Group 3.5 Agree
2 Attitude 4.1 Strongly Agree
3 Place 3.5 Agree
Figure 1. Research framework 4 Social Status 2.7 Neutral
5 Price 4.6 Strongly Agree
6 Product Quality 3.8 Agree
Figure 1 explained the flow of this 7 Consumen Preference 3.6 Agree
research; from study of literature until the
managerial implication are formulated. Based on the descriptive analysis of
After the data is obtained, the research is the respondents' answers to the 7 variables,
continued with descriptive analysis; different results were obtained, the category
descriptive analysis is used to determine the in question is the tendency of the
characteristics and responses of respondents respondent's response to the questionnaire
to branded bags. Data processing in questions with the condition that the score 1
International Journal of Research and Review (ijrrjournal.com) 640
Vol.8; Issue: 3; March 2021Amanda Putri Kusumawardhani et.al. Consumer preference on choosing branded bag. is strongly disagree, 2 is disagree, 3 is reference group, personality, place, status. neutral, 4 is agree, 5 is strongly agree. The Social, price, and product quality influence average response to the attitude variable as much as 67.8 percent on consumer (4.1) and price (4.6), the respondent preferences, while the other 32.2 percent are strongly agrees, which means that the influenced by other variables not examined respondent chooses a branded bag because it in this study. Based on the ANOVA test on represents a function of expression of value multiple linear regression, it was found that and knowledge and feels that the price is the F value was 55.054 and the sig was very much in line with his expectations. On 0.000, because the results of the sig value the average agreement on the reference
Amanda Putri Kusumawardhani et.al. Consumer preference on choosing branded bag.
significance level in this study, namely 0.05, The Effect of Price on Consumer
this shows that attitudes have no effect on Preferences
consumer preferences, which means that Price has a significant positive effect
consumers do not choose a branded bag on consumer preferences with the value of
based on the function of knowing the the non-standardized coefficient value of
quality of the material used by the brand 0.025 and a significance level of 0.247, it is
issuing the branded bag and the function of proven that the significant value of the price
expressing the value of the consumer's is greater than the significance level in this
knowledge of the trends that the brand study which is 0.05, which means that there
followed. is an influence on the price variable.
Represented by price suitability, price
The Influence of Place on Consumer affordability, and price competitiveness
Preferences against consumer preferences. This
Place has a significant positive indicates that the higher the value of price
effect on consumer preferences with the compatibility with branded bags obtained by
acquisition of the non-standardized consumers, the higher consumer preferences
coefficient value is 0.334 and a significance in the selection of branded bags.
level of 0.000 indicates that the significant
value of personality is smaller than the The Effect of Product Quality on
significance level in this study, namely 0.05, Consumer Preferences
which means that there is an influence of the Product quality has a significant
place variable on consumer preferences positive effect on consumer preferences, the
which means that it is higher. The value of value of the non-standardized coefficient is
the place variable represented by offline 0.158 and the significance level is 0.016. It
shopping and online shopping, the higher is proven that the significant value of
the consumer preference in the selection of product quality is smaller than the
branded bags. significance level in this study, namely 0.05,
which means that there is an influence on
The Influence of Social Status on the variable product quality on consumer
Consumer Preferences preferences in purchasing. Branded bags
Social has a significant positive and any increase in product quality, there
effect on consumer preferences with the will be an increase in consumer preference
value of the non-standardized coefficient as much as 0.158, this shows that if the
value is 0.184 and a significance level of quality of the product is getting better, the
0.001 proves that the significant value of more consumers will buy branded bags.
social status is smaller than the significance
level in this study, namely 0.05, which Managerial Implication
indicates social status has an influence on This study produces several findings
consumer preferences in the selection of that are organized into managerial
branded bags. This shows that the social implications aimed at sellers and shop
status variables represented by wealth, owners who provide branded bags. Based
power, descent, and education have an on the results of this study, several things
effect on consumer preferences. Therefore, need to be considered.
consumers use branded goods to appear Research respondents who own and
economically capable, have power, come buy branded bags studied in this study are
from highly respected and educated women and men with an age range of 20 to
descendants and the higher the influence of 50 years with various types of work, namely
status. Social, the higher consumer civil servants, BUMN employees, private
preferences in choosing branded bags. employees, doctors, entrepreneurs, students,
and housewives. Income of 5 million to 30
International Journal of Research and Review (ijrrjournal.com) 642
Vol.8; Issue: 3; March 2021Amanda Putri Kusumawardhani et.al. Consumer preference on choosing branded bag.
million. By paying attention to the variables suitability, price affordability, and price
that affect this study, namely the reference competitiveness. The right managerial
group, social status, and price related to the implication is that a brand or store that sells
psychographics of the respondents, the branded bags must pay attention to the
appropriate managerial implications for the prices of competitors, besides that a brand
reference group variable are where or shop can certainly provide regular
consumers choose branded bags based on discounts every year, for example during the
normative, informative and value expression holiday season and holidays, besides that a
influences. The normative influence of a brand or store can provide special discounts
brand can create an environmentally in the form of a private sale event for VIP
friendly product campaign that does not use members, namely giving discounts to
rare animal skins and uses vegetarian consumers who are loyal to the brand or
leather, this can attract the interest of store by giving special discounts to VIP
consumers who care about the environment, members, these members can be interested
an example of a brand that uses this strategy because of the different discounts from
is the Stella McCartney brand with the other consumers. The brands that have
campaign title "Sustainability Vegetarian implemented the VIP Sale are Tory Burch
Leather" is to maintain the balance of the and Coach
environment, besides that there is the In market segmentation, there are
MarhenJ brand which puts a description that geographic factors that base customer
the bags they offer use vegan leather in the segmentation by country, region, city or
column to sell the bag products they offer. certain environment. The place variable
On indicators of informative influence and affects consumer preferences in the
the influence of value expression, a brand or selection of branded bags, in shopping,
store can collaborate, collaborate, or ask for consumers can make purchases online or
support from artists or influencers, for come to the store directly. Official stores of
example brands or stores that have brands that sell branded bags from the five
implemented this strategy are Coach X bag brands studied (Kate Spade, Michael
Selena Gomez and branded bag stores that Kors, Longchamp, Tory Burch, Coach) are
carry out this strategy are Liebelux. only available in major cities in Indonesia,
Authentic teamed up with influencer Rachel namely Jakarta, Bandung, Surabaya, and
Vennya. Medan but there are multi-brand shops that
Social status variables affect sells branded bags designed by international
consumer preferences, the right managerial designers in big cities like Jakarta and
implication for brands and stores that sell Surabaya. Some of these multi-brand shops
branded bags is to give an impression that already have official websites and Instagram
accentuates the social status of consumers, accounts such as the Banananina website,
several things that can make the impression Mywishlist account website, Reebonz,
to describe high social status in consumers website, Instagram Storebagus, Instagram
are making or selling limited edition bags. Lieebelux. Authentic, Instagram Ladies.
Then, a brand or shop can offer engraved Paradise. If a brand and a store that sells
name initials on bags that consumers buy, branded bags can provide convenient direct
examples of brands that have implemented shopping facilities such as providing a
the concept of name engraving or comfortable shop decoration, the
personalization are the Coach and appropriate layout of goods, to providing
Longchamp brands. extra services to consumers such as
The price variable has a significant providing drinking water, of course,
positive effect on consumer preferences, this consumer preferences will increase.
shows that consumers are very concerned However, because the place to shop for
about prices which consist of price branded bags is not directly available in all
International Journal of Research and Review (ijrrjournal.com) 643
Vol.8; Issue: 3; March 2021Amanda Putri Kusumawardhani et.al. Consumer preference on choosing branded bag.
cities in Indonesia the right way to increase bag, place variables affect consumer
sales is to create an online platform for bag preferences on choosing branded bag, social
sales, considering that currently the trend of status variables affect consumer preferences
selling in e-commerce is on the rise, a brand on choosing branded bag, price variables
and a store that sells bags. brands can put affect consumer preferences on choosing
catalogs on e-commerce Shopee, Lazada, branded bag, and product quality variables
Tokopedia, Bukalapak, JD.ID, and Zalora affect consumer preferences on choosing
besides that, the official website used for branded bag. This shows that the higher the
bag sales must also be considered by value of the reference group, place, social
providing features that make it easier for status, price, and product quality, the higher
consumers such as live chat, filing the consumer preference on choosing
complaints, and item ordering status branded bag
updates. Future research is expected not only
The target market of the five bag to research branded bags from international
brands studied based on the results of data brands, but also to research branded
collection of respondents from the products with original quality, such as
questionnaire used in the study were sports and fashions products, and further
consumers with an income range of 5 research is expected to add research
million to 30 million in 1 month. If a brand variables that have not been studied in this
and a store that sells branded bags can study, such as variables of customer loyalty
implement the managerial implications of and satisfaction.
the variables that affect consumer
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