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e

I

gs

The International Conference on Industrial Engineering and Business Management

2010

.

Q

1

editors:

Arya Wirabhuana, Muchammad Abrori, Kifayah Amar

Organized

by

(2)
(3)

Preface

Assalamu'alaikum Wr.Wb.

F

irst, let us express our gratitude to Allah SWT for his blessings so that the International Conference on Industrial Engineering and Business Management (ICIEBM) 2010 can successfully be held on 12-13 October 2010 in Yogyakarta, Indonesia.

The event was organised by the Department of Industrial Engineering, State Islamic University of Sunan Kalijagawhich supported by IEEE Indonesia Section, Universiti Malaysia Perlis and Indonesian Association of Industrial Engineers (ISTMI).

The ICIEBM committee has received more than 200 papers from all over the world. The 106 papers in this proceedings were selected based on reviewers' decision. These papers written by academics, researchers, practicioners and students from countries such as Australia, Bangladesh, Germany, India, Iran, Libya, Malaysia, New Zealand, Pakistan, South Korea, Thailand, The Phillipines and Indonesia. In addition to these, a considerably large numbers of government officials from Burundi, Cameroon, lndonesia and Malaysia registered as attending participants to this conference.

The high enthusiasm of people to join the conference was in line with one of the ICIEBM's objectives, i.e. to provide an international forum for students, researchers, academics and practlcioners to share the most recent research, theory and practices. We further hope that the network built through this conference can be a good foundation for future collaboration research among ICIEBM 2010 participants.

Finally, I would like to extend my sincere thanks and appreciation to the invited speakers, reviewers, editors, sponsors, people in the Department of Industrial Engineering, Faculty of Science and Technology, State Islamic University of Sunan Kalijaga as organisers, who have dedicated their time and efforts to this conference.

See you in next ICIEBM conference!

Wassalamu'alaikum Wr.Wb.

Yogyakarta, 26 September 2010 Conference Chair

(4)

HRMOI

An analysis of program management at the Universitas Khairun, Maluku Utara

Iohan

Fahri

10.

HRM02

Design an Effective Training Program by Using Spencer's

Competency Model at

055

Communication

Division - PT Jasa Marga

Table of Contents

No.

Code

Title and author(s)

COVER

COMMITTEE LIST

PREFACE

TABLE OF CONTENTS

CHAPTER!

: ECONOMY AND BUSSINESS SYSTEM (EBS)

1

.

EBSOI

E-commerce

Adoption Barrier in Indonesian Micro, Small and Medium Enterprises

(SMEs)

Rajesri Govindaraju, Dissa R. Chandra

EBS02

An Empirical Study on the Individuals'

Online Purchase intention, An Islamic

Perspective

Hamid Reza Peikari, Norjaya bt. Mohd Yasin

EBS03

New M-Marketing

Strategy for Natural Coloured Indonesian Batik Trading

,.

Maria Yunike, Elisabeth Denis Setiani, Thomas Adi

Purnomo

.

Sidhi, Silvia,

Suyoto

EBS04

Jogjakarta:

E-Tourism Guide With Online System

Hidayatulah Himawan

EBS05

Assessing Social Commerce Strategies for Indonesian Market Case Study: Kaskus.us

Deny Winarto, Yustian Gunawan, Citta Aninditta Suyoto

EBS06

The Framework for Technology Entrepreneur

Development through Incubation

Process in Universities in Indonesia

2.

3.

4.

5.

6.

7

.

John Roni Coyanda, Sahadah Bin Haji Abdullah

Management

Strategy of Local Company in Competitive Market

Ira Setyaningsih

Innovation

in Service Marketing I Service Marketing Innovation

Robert Kristaung. Sri Vandayuli Riorini

EBS07

8.

EBS08

CHAPTER

2.

HUMAN RESOURCES MANAGEMENT (HRM)

9

.

(v)

Page

iii

tV

v

003

009

015

022

026

033

036

04

1

049

(5)

Committees:

Advisory Committee:

Professor Amin Abdullah, Rector of UIN Sunan Kalijaga, Indonesia

Dato' Professor Kamarudin Hussin, Vice Chancellor of Universiti Malaysia Perlis, Malaysia Vice Rectors of UIN Sunan Kalijaga, Indonesia

Maizer Said Nahdi, M.si, Dean of the Faculty of Science and Technology of UIN 5unan Kalijaga, Indonesia Dr.Wahidin Wahab, IEEE Indonesia Section

Dr.Kuncoro Wastuwibowo, IEEE Comsoc Dr. Arief Hamdani, IEEE Indonesia Section

Reviewer Committee:

Dr. Reza Fatholahzadeh Aghdam, King Fahd Uni of Petroleum and Minerals, K5A Dr.DouglasDavis, University of Technology Sydney, Australia

Assoc.Prof. Baba Md. Deros, Universiti Kebangsaan Malaysia, Malaysia Dr. Agung Fatwanto, UIN Sunan Kalijaga, Indonesia

Dr.Ferry Jie, RMIT Melbourne, Australia

Dr.Nur'aini Masruroh, Universitas Gadjah Mada, Indonesia Dr.Hosein Piranfar, University of East London, UK

Ruwadi, Nanyang Technological University, Singapore Dr.T.M.A Ari Samadhi, Institut Teknologi Bandung, Indonesia

Professor Moses Laksono 5inggih, Institut Teknologi Sepuluh Nopember, Indonesia Dr.Suprayogi,lnstitut Teknologi Bandung, Indonesia

Dr.Isti 5urjandari, Universitas Indonesia, Indonesia

Dr.Kadarsah 5uryadi, Institut Teknologi Bandung, Indonesia Dr.Alva Edy Tontowi, Universitas Gadjah Mada, Indonesia Dr. lulnaidi Yaacob, Universiti Sains Malaysia, Malaysia

Professor 5ha'ri Mohd YLisof, Universiti Teknologi Malaysia, Malaysia Professor luraidah Mohd lain, Universiti Malaysia Perlis, Malaysia

Organising Committee

Muhammad Abrori, M.Kom [Conference Chair] Dr. Kifayah Amar [Conference Secretary] Taufik Aji; MT [Program Coordinator] Ira Setyaningsih, M.Sc [Finance Manager] Siti Husna Ainu Sukri, MT [General Affairs] Cahyono Sigit, MT [Publication]

Tutik Farihah, ST [Accommodation] Arya Wirabhuana, M.Sc [Proceeding] Yandra Rahadian Perdana, MT [Tour] Muhammad Arief Rochman, ST Agus Suwandi, ST

Ikhwan Ardiansyah, 5T

(6)

PROCEEDINGS

The International

Conference on Industrial Engineering

and Business Management

(ICIEBM) 201

.

0

Editors:

1

.

Arya Wirabhuana

2. Muchammad

Abrori

3. Kifayah Amar

Published by :

DEPARTMENT OF INDUSTRIAL ENGINEERING

FACULTY OF SCIENCEAND TECHNOLOGY

STATE ISLAMIC UNIVERSITY OF SUNAN KAUJAGA, YOGYAKARTA, INDONESIA

(ii)

Address:

Department of Industrial Engineering

Faculty of Science and Technology UIN Sunan Kalijaga Yogyakarta

JI.Marsda Adisucipto No.1 Yogyakarta 55281, Indonesia

Telp: (0274) 5519739 Fax: (0274) 5540971

Web: www.saintek.uin-suka.ac.id

Copyright @2010 reserved

Reproduction in part or whole of this book in any form, either electronics or mechanical, including

photocopying, recording, or with any other storage system, without permission in writing from the publisher

is prohibited

First Edition, First Printing in 2010

(7)

)

No.

Code

Title and author(s)

Page

CHAPTER

3.

QUALITY

CONTROL MANAGEMENT

(QCM)

22.

QCMOI

What Matters The Most for Sms Users' Satisfaction and Retention?

Evidence from

123

Telecom Sector of Pakistan

Ishfaq Ahmed, M Musarrat Nawaz

,

Zulfqar Ahmad, M Z Shaukat, Ahmad

Usman

23.

QCM0

2

Identification of Customer requirements and Technical requirements

to Support

129

WiMAX-Based Wireless Internet Product Development

Using Quality Function

Deployment

Muhammad

Iqbal, Yudi Pramudiana,

Palti S.

24.

QCM03

Real Time Control Chart System (RTCCS) for PT Sinar Terang Logam Jaya Oil Lock

134

Collar Production Process Control

W. Kurniawan,

R. Wangsaputra

25.

QCM04

Waste Reduction Strategy Using Lean Manufacturing

Methods

141

Reni Amaranti,

Chaznin R. Muhamad

26.

QCM05

Reduction of Machine Cycle Time Variation in The Hard Disk Drive Assembly by

147

Six Sigma Approach

Tahkorn Poungraya, Pramual Sut

e

echaruwat

2

7

.

QCM06

The Application of Taguchi Method to Reduce Number of Defects in Coloring Cloth

153

Process

Dedy Suryadi, Diana Utama, Kinley AriJonang

28.

QCM07

Production Yield Improvement U

s

ing Six Sigma DMAIC Methodology

158

Z. Nooraizedfiza

29.

QCM08

The Truths about the Implementation

of Quality M

a

nagement System in the

164

Malaysian Construction Industry

Ilias Said,M

Fikri Hasmori, Mustafa M. A. Klufallah

& Nur Hidayah ldris

30.

QCM09

Benchmarking

Best Practices through Quality Management Systems among

169

Contractors in Malaysia

Mustafa M.A.Klufallah,

M Fikri Hasmori

,

Ilias Said & Nur Hidayah ldris

31

.

QCMIO

The Conceptualization

and Development of Safety Culture in the Construction

176

Indu

s

try

Mohd Saidin Misnan, Muhammad

Fikri Hasmori, Mustafa M.A. Klufallah, Ilias

Said & Abdul Hakim Mohammed

32.

QCMll

Developing prototype of Seat Belt Reminder Systems for Indonesian Used Car

182

Ilma Jayanti, Ari Widyanti

33

.

QCM1

2

Key El

e

ment

s

of a Lean Six S

i

gma Framework for Indonesian SME

s

187

Kifayah Amar, Douglas Davis

34

.

QCN1

3

Effect

s

of Brand Equity on Custom

e

r Satisfaction and Brand Choice on Mobile Phone

194

(8)

-No.

Code

Title and author(s)

Page

Dewi Shoji,

Dannawan

Giri,

Edy

1l

.

HRM03

The Relationship among Organizational

Factors, Knowledge Sharing

a

nd Wor

k

060

Performance

Amelia Kurniawati,

Luciana Andrawina,

Warih Puspitasari

12

.

HRM04

Conceptual Model for Developing Creativity in Batik Industry

066

Aries Susanty,

Arfan Bakhtiar,

Sriyanto, Ruth D. Tambunan

13.

HRM05

Implementation

Of 360 Degree Assesment For Evaluation The Employee

s'

072

Competency In PT. Pupuk Kalimantan Timur

Agus Subekti

1

4

.

HRM06

Electronic Word

-

of-mouth

in Indonesia Hospitality and Tourism

075

Apirath

Tanchot, Komang Tri Werthi, Lusia Dewi Kristanti, Methawat

Phutornpakdee,

Suyoto

15.

HRM07

An Application of Balanced Scorecard System for Improving Business Proce

ss

080

Performance of an Agricultural Firm

Dwi Kurniawan

16.

HRM08

The Enterprise Risk Management

and The Enhancement of Shareholders'

W

ea

lth:

086

Myth or Reality

Mohd Ariff Kasim, Siti Rosmaini Mohd Hanaji,

Nik Mohamad

Zaki Nik Salleh,

Azwan Abdul Rashid, Asmah Abdul Aziz,

Isahak Kasim

17

.

HRM09

Theoretical Framework:

The Influence of Technology, Technical Skill and Research

093

& Development Capability To Competitive Advantage

Endang Chumaidiyah

18

.

HRMlO

Practical experience in the ecoFLEX flexibilty evaluation tool in medium sized

098

companies

Sven Rogalski

19

.

HRMII

Cross case comp

a

rison of organizational

change factors in lean manufacturing

103

implementation

Norani Nordin, Baba Md Deros, Dzuraidab Abdul Wahab, Mohd Nizam

Ab.Rahman

20

.

HRM12

Organizational

Commitment and Turnover Intent

i

on among Engineers in Pen

a

ng

,

109

Malaysia

Nasina Mat Desa,

1rence Ha Chin Yan

21

.

HRM13

Conceptual Model to Enhance Creativity of the Batik Industry

115

Arfan Bakhtiar, Aries Susanty, Sriyanto, Okki Putri Handayani

(9)

r

No.

·

Code

Title and author(s)

Page

CHAPTER

4.

DECISION

ANALYSIS

(DCA)

35.

DCAOl

Analysis And Design Of Accounting Information Systems Revenue Cycle And

Inventory At PT. XYZ

Arta M. Sundjaja

36.

DCA02

Reinforcement-Concrete

Ratio of Building Frames

Tan Chin Keng

37.

DCA03

Con

s

umer Decision Making: Indonesian Female Shopping Style

209

Septi Mariani; Ida Astuti, Iman Murtono Soenhadji

201

206

38.

DCA04

Pricing and Replenishment Policy for a Deteriorating Item with Partial Backlogging

213

Where Time-and-Price Dependent Demand is Allowed

Isa Nakhai,

Reza Maihami

39.

DCA05

Strategic Decision Making for Production Optimization

:

A Case Study of Diesel

.

219

Locomotive Works (DLW), Varanasi - India

Ashutosh Mohan & Lakshmi Raman

40.

DCA06

Movie Advertising Feature on SoloMovie's

Website Using Association Rule

226

Yusuf Priyandari, Retno Wulan Damayanti, Affriantari

Rochmah

41

.

DCA07

An Efficiency Analysis of the Philippine Public Basic Education Sector

230

Jason Alinsunurin

42.

DCA08

Household Survey for Cities Region Development Project

:

Conjoint Analysi

s

Matiur Rahman

43

.

DCA09

A Location Allocation Model with Seasonal Time Dependent Demand (Case:

Fertilizer Industri in Indonesia)

Mira Rahayu, Pratya Poeri Suryadhini

44.

DCAlO

Productivity AnalysisUsing Data Envelopment Analysis (DEA)

Afif Hakim, Siti Husna Ainu Syukri, Tutik Farihah

236

241

247

CHAPTER

5.

ENGINEERING

ECONOMY

(EEC)

45.

EECOl

Developm

e

nt of an Effective Cost Management Method for Malaysian SME

s

Deros, B.M., Rahman, N., Zainal, N.H., Mohamad,

D.Rahman,

M.N.A. & Ismail,

A.R.

255

46.

EEC02

Buy or Lease Decision A Case of NMR Spectrometer Investment of PT X

Farizal and Weny Liviana

47

.

EEC03

Life C

y

cl

e

Cost Analy

s

is of Natural Gas Ba

s

ed V

e

hicles in Indonesia

Budhi S. Wibowoand

Farizal

259

(10)

No.

Code

Title and author(s)

48

.

EEC04

Testing For Long-Run Relationships In The Asean5 Gdp: 1990

-

2006

Nor M.

Zarina

49.

EEC05

An Empirical Investigation on Bankers Acceptance of Information Technology

Zarehan Selamat

Page

267

271

CHAPTER

6

.

ERGONOMY

(ERG)

50.

ERGO!

Redesign Of Work Facilities Using Rapid Upper Limb Assessment (Rula) and

Anthropometry Method (Case Study CV. Laksana Home Metal Industry)

Puti Renosori, Eri Achiraeniwati,

Dwi Sukma Krisna W

51

.

ERG02

Ergonomic Macro Analysis of Hand-Phone Usage by College Students in Bandung,

284

279

Daniel Siswanto, Santi Erawaty, Willy Wijaya Putra

52

.

ERG03

Design an Application Program of Anthropometric Data Management as a Supporter

287

of Research and Design of Products Based on Ergonomic

Gustitia Putri Perdana , 1rwan Iftadi, Rahmaniyah

Dwi Astuti

53

.

ERG04

Behavioural Intention to Use Iris Authentication Approach for Public Authentication

291

Among Users of Public Terminals:

Where Does Age Come In ?

Daile

J,

Jimoh, R. G.

CHAPTER

7. TECHNOWGY

AND KNOWLEDGE

MANAGEMENT

(TKM)

54

.

TKMO 1

Conceptual Model of Land Use Mapping Application of Citarum River based on

297

Geographic Information System

Firmansyah

Wahyudiarto, Rd.

Rohmat Saedudin

55.

TKM02

Design of Monitoring Modem and Traditional Retail using Ge0&I'aphic Information

303

System

William Seta Adriano, Luciana Andrawina

56

.

TKM03

Development Of Knowledge Management Web Portal For Data And Information On

309

Coastal Areas Using Semantic Approach

Devi Munandar

57

.

TKM04

Review on cross cultural studies in cognitive ability: implication for Indonesian

315

context

Ari Widyanti

58

.

TKM05

Application of Data Mining to Determine the Most Influenced Item to Design

319

Discount Price Strategy

Ilham Mohammad

Hasan, Agus Mansur, Aditya Pradipta

59.

TKM06

A Real-Time Knowledge Collaboration Using Web Flexible Editing System

325

Rendra Gustriansyah,

Azizi Zakaria

(ix)

(11)

-No.

Code

Title and author(s)

Page

60.

TKM07

Integrative Model of Information Technology Adoption in Small Businesses:

331

Empirical Study in Yogyakarta

Rahab

61

.

TKM08

Designing A new model of organizational Productivity Based on Continious Change

339

Management theory

Farzaneb Chavoshbashi,

Mohsen Ghadami

62.

TKM09

Measuring the Effect of Customization in Influencing the Success of

ERP

347

Implementation

Fahmi Arif, Kasturi Kanchymalay,

Nanna Suryana, Ramesh Krishnan,

Ummi

Raba'ah Hashim, Nor Haslinda Ismail

63

.

TKMIO

The Impact of Knowledge Sharing towards Benefit Realization during

353

Implementation of ERP

Yanti Sri Rejeki

,

Rajesri Govindaraju

64.

TKMll

Developing Evaluation Model for Project Management in Higher Education (A Case

359

Study)

Cahyono Sigit Pramudyo

CHAPTER 8. SUPPLY CHAIN MANAGEMENT

(SCM)

65.

SCMOI

Leagile Supply Chain Strategy of Indonesian Corrugated Box Manufacturer

365

Yosef Daryanto

66.

.

SCM02

A Hybrid Model using AHP and Neural Network for Vendor Selection

370

Nirjhar Roy and Jitendra Kumar

67.

SCM03

A Linguistic Model to Solve Cellular Manufacturing Problems

376

Nirjhar Roy

68.

SCM04

The Research Gaps

and Opportunities in the Logistics Service Provider

(LSP)

382

Research Development

Yeni Sumantri and Sim Kim Lau

69.

SCM05

Review of Supplier

Selection Methods:

Suitability for Malaysian Electricity Supply

388

Industry

Sivadass Thiruchelvam

and John E. Tookey

70.

SCM06

Push and Pull Joint Economic Lot Sizing Model with Remanufacturing

394

Ika Nurshant

i

and Suparno

71

.

SCM07

Value Stream Mapping:

Eliminating Waste

and Adding Value

400

Sunday Alexander

T. Noya

72.

SCM08

Partnerships Strategic Management

for Sustainable SMEs Industries

404

(Case Study of SMEs Industries in Bandung,

Indonesia)

(12)

No.

Code

Title and author(s)

Page

73.

SCM 09

Commitment

Dimensions in the International Buyer-Supplier Relationship: A Case

408

Study

Sabri Bin Mohamad Sharif and Tih Sio Hong

CHAPTER9.

SIMULATION

AND MODELING

(SMG)

74

.

SMG-Ol

Designing Simulation Model Using Pro Model for Patient Service System

423

Merry Siska, Yenita Morena

75.

SMG-02

Policy Analysis to Reduce Opportunity Lost in Newspaper Industry with System

429

Dynamic Approach

Ioko

Sulistio, Winda Nur Cahyo, Nurul Kusmanto

76

.

SMG-03

Designing a Mathematical Model for Dynamic Cellular Manufacturing Systems with

435

Route Selection and Purchasing Machines

Mohammad

Mahdi Paydar, Mohammad

Saidi-Mehrabad,

Arian Ghajarzadeh,

Reza Kia

77.

SMG-04

The Development of Computer Simulation and Modeling Approach for Sustainable

442

Energy System: A Critical Study of National Electricity Sector

Arya Wirabhuana

78.

SMG-05

Implementation

of Process Modelling and Simulation Techniques in Malaysian

449

Industries - A Case Study

Abdullah AL Turki, Waleed Fekry Faris, Abdul Khaliq Rasheed

79.

SMG-06

Create Randomization in Simulation Models

455

Elham Shadkam,

Abdollah Aghaie

CHAPTER

10.

PRODUCT DESIGN AND REENGINEERING

(PDR)

80

.

PDROI

MP4 Player QTTEC QT-I02 Re-designing with User-Centered Design Method

463

Daniel Siswanto, Santi Erawaty, Mellisia

81

.

PDR02

.A Model of Product Performance Forecasting (Case study on Low End Segment

469

Mobile Phone)

I.D.

Widodo, Alva E. Tontowi, Subagyo

82.

PDR03

Implementation

of FMEA to Design Actions Plan

474

Endang Prasetyaningsih,

Ridwan Marpela

S

83.

PDR04

Cooperative Multi-person Decision on Product Development

480

Christiono

Utomo

84.

PDR05

Development of Medical Devices, a Data Acquisition Tool for Workflow Analysis

485

Axel Boese, Martin Hinz

(13)

No.

Code

Title and author(s)

Page

85.

.

PDR06

Designing Electric Guitar Using Integrated QFD and Kano Model

Dedy Suryadi, Gani Sondjaja

,

Thedy Yogasara

489

CHAPTER

11

.

MANUFACTURING

AND PRODUCTION

SYSTEM

(MPS)

86

.

MPSOI

Solving the "Dynamic Facility Layout Problem"

in Cell Manufacturing

using Meta-

497

Heuristic Algorithms

Ehsan Shahbazi

87

.

M

PS02

Defects Prediction on Plastic Injection Moulding Process

503

Abdul Talib Bon, Mohd Asri Feair

88

.

MP

S03

Thermal Cycling Effects on Properties of Steel Grade Used for Heat Exchangers:

507

Doe Approach

Ashraf M. Elaieb,

F. M. Shuaeib,

Ramadan O. Saied and Mohammed

A. Gebril

89.

MPS

04

Location Determination of New Branch For Laboratory Clinic X Using Analytic

513

Network Process (Anp) and Feasibility Of Investment

Moses L Singgih, Sri Handayani

9

0

.

M

P

S05

Introducing Inverse Layer Manufacturing Method for Geometric Reconstruction

519

Paryana Puspaputra, Ghani Wahyu Nugroho

91

.

MPS

06

In-process Correction Systems in a Small Repetitive Manufacturing Enterprise

523

Dradjad Irianto

92.

MP

S07

Generating an Efficient Schedule in a No-Wait Two Stage Flexible Flow Shops with

527

Maximizing Utilization

..

Meysam Rabiee, Rasoul Shafaei, Mohammad

Mirzaeeyan

9

3

.

MPS08

New Heuristic Approach to Find Optimal/Near

Optimal Sequences to Minimize

533

Tardiness / Earliness of Jobs in Parallel Flow Line Set Up

N. Rajeswari, K.Balasubramanian

94

.

M

PS

09

Job Shop Scheduling Problems with Alternative Routings using Variable

537

Neighbourhood Descent to Minimize Makespan

Arif Imran, Martino Luis, Emsosfi Zaini, B

.

Benny

9

5.

MPSlO

Batch Scheduling To Minimize Total Actual Flow Time In A Two-Stage Flowshop

542

With Dedicated Machines In The Second Stage For Various Due Date

Pratya Poeri Suryadhini,

Mira Rahayu

96

.

MPSll

Hydrodynamic effects during Waste cooking oil transesterification

using CFD

548

Adeyemi, Nabeel A, AKM Mohiuddin,

Tariq Iameel

9

7

.

MPS12

Impact of ERP System on Productivity Improvement: Case Studies of Four

553

Manufacturing Companies in Malaysia

(14)

No.

Code

Title and author(s)

Page

CHAPTER

12.

INTELLIGENT

AND EXPERT

SYSTEM

(IES)

98.

IESOI

Machine Vision System for Automatic Grading of Pineapple Maturity Index

561

Kamarul Hawari

Ghazali;

Rohana Abdul Karim

99.

IES02

Reversible Wavelet Based Watermarking for Checking Image Authenticity

566

Nova Hadi Lestriandoko,

Ekasari Nugraheni

100. IES03

ANFIS as Tool for Bankruptcy Prediction: A Comparative Study with Logit

573

Technique-T. Zanganeh,

B. Karimi, A. Esfahanipour,

M.Rabiee, M.Zarei

101

.

IES04

A Genetic Algorithm for Capacitated Balanced Allocation Problem with Multiple

579

Products

Pezhman Ramezani, Rasoul Shafaei

102. IES05

Automatic Door Access System using Small Embedded Single Board Computer

585

Udayanto Dwi Atmojo, Litasari, Astria Nur Irfansyah,

Enas Dhuhri Kusuma

103. IES06

Genetic Algorithm for a DynamicInbound Ordering and Shipping, and Outbound

591

Dispatching Problem with Delivery Time Windows

Byung Soo Kim, Woon-Seek Lee, and Prudensy Febreine

Opit

104. IES07

A Fuzzy Multi-Objective Linear Program for Solving Capacitated Lot Sizing Problem

598

in a Mixed Assembly Shop

Navid Sahebjamnia,

Arian

Ghajarzadeh,

S.A. Torabi

105. IES08

Ontology Supported Intelligent Energy Management System in Buildings

604

Hendro Wicaksono, Sven Rogalski

106. IES09

A Genetic Algorithm for Highly Constrained University Course Timetabling Problem

610

TaufiqAji

(15)
(16)

ISBN: 978-602-97809-0-1

ConsumerDecision Making: Indonesian Female

Shopping Style

Septi Mariani, Ida Astuti, Iman Murtono Soenhadji

Management Department, Gunadarma University, JI.Akses Kelapa Dua Cimanggis, Depok 16951, Indonesia

mariani@staff.gunadarma.ac.id astuti@staff.gunadarma.ac.id imanms@staff.gunadarma.ac.id

I • The purpose of this study is to find out the

cteristicsor Indonesian female with the consumer style to

tifyshoppingstyles.All previous studies of tended to test the ·tyor the consumer style inventory (CSI). We developed

dimensions,the consisted. or quality consciousness, brand . ness, price consciousness, reliance on mass media,

·nginfluences,and, convenience and time consciousness.

obtained120respondents. Exploratory, factor analysis and a JJ1IUItorfayctor analysis are adopted to validate the CSI

ory andmarketing and consumer behavior implications discussed.

rd-Consumer decision, Female, Shopping styles (CSI)

I.INTRODUCTION

Consume are motivated and take action through their

Jl3Is.In order to reach their goals, they undergo some

intellectual, emotional and behavioral processes. These

tifelongactivities become a part of life and create style of·

shopping when the consumer determines the way that

provides the best satisfaction. Decision-making style is definedasthe emotional and cognitive tendencies which have pennanentand.constant effects on consumer shopping style.

Indonesian female .rapid income rate influences more productsand services for women available, many of which are fromforeigncountries, As described, based on the commercial

global integratiori unfolds in the world's market places,

decisionmaking process is becoming an increasingly complex phenomenon.

Inrecent years, lots of researchers become more and more

interestedinpurchase behavior of the female experiences. To explorethe changing market consumes structure of the female becomemore and more important to marketers because they candetermine consumer behavior of the female in the future.

Giventhe unique market environment, how do Indonesian

consumers make purchasing decisions? A consumer

decision-making style is defined as a mental orientation characterizinga consumers' way to making consumer choices, andthen they developed a consumer style inventory (CSI).

CSI scale divided into eight central decision making

dimensionswhich influence a consumers' decision making

styles (Sproles and Kendall 1986). These eight instruments: (1)

Perfectionism/high quality (2) Brand consciousness (3)

Novelty-Fashion Consciousness (4) Recreational (5) Price

Value Consciousness (6) Impulsiveness (7) Confused by over

choice (8) Brand-Loyal. For this study we only have six CSI factors are validated.

CSI scale represents the most tested instrument currently; however, it cannot generalize to all consumers, particularly to adults, because student samples do not represent the general population (Gordon et al. 1986). As the limitation of above,

this study purpose is to find out the characteristics of

Indonesian female with the CSI to identify their shopping

styles.

II.LITERATURE REVIEW

Investigation consumer decision making styles in terms of

shopping goods and in convenience goods they could not

obtain identifiable styles (Bauer, Sauer and Beeker, 2(02).

There were any differences in decision-making of the

consumers who prefer both domestic and imported goods

(Wang, Siu, Hui, 2(04). Investigation on Indonesian consumer

attitude shows consumer perception and confidence in the

quality of imported products were higher than local products

(Soenhadji,201O).

Decision making styles is a mental orientation that

describes how a consumer makes their choice. Decision

making styles are very important to marketers who want to

expand their products or services into new overseas markets.

The marketers can easily target their products, services,

locations and promotional efforts according to the types of

consumer.

Decision making styles of German consumers with

non-students samples and confirmatory factor analysis showed

that CSI seems unable to measure consumer decision making

characteristics effectively in all countries (Walsh et al., 2(01). For example, time and environmental conscious areimportant to German consumers, isnot affiliated with the original scale of CSI. This mentioned that the current CSI cannot measure consumer decision making styles of all different cultures and countries.

All previous studies tend to test the generality of the CSI by

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also challenging, Therefore, a questionnaire was designed to

measure Indonesian female consumer decision making styles.

We obtained 120 respondents from 200 questionnaires where

delivered. The items mostly based on the exploratory studies

of Sproles and Kendall (1986), in this study we affiliatedwith

new dimensions to measure the decision making styles, the

complete measuring scale were (1) Quality consciousness (2)

Brand consciousness (3) Price consciousness (4) Reliance on

the mass media (5) Shopping influences (6) Convenience and

time consciousness. The measured dimensions contained

Likert-type items and had the following five point scale:

"strongly disagrees (1), somewhat disagree (2), neitheragrees

nor disagree (3), somewhat agree (4), strongly agree (5)."

IV. DATA COLLECTION

A total of 200 questionnaires were sent. We decided 10

utilize the mall intercept surveys at Depok, due to the same

culture and some race. Furthermore, mail and telephone

survey methods cost too much and unattractive. Accordingly,

the sample locations used in this study are the working place.

Samples of females are sent to their companies. From200sent

questionnaires, only 120 were returned.

ISBN: 978-602-97809-0-1

directly using the developed scales, but these eight dimensions

may not be fit the style of decision making of different

cultures (Spoles and Kendall, 1986). In order to measure the

consumer decision making styles precisely, the new CSI

scales developed for Shanghai and Hong Kong working

females (Susan,. 2005). The study provided by lifestyles

investigation institutes via extensive search from local

newspapers, magazines and other lifestyles studies. They

synthesized the results with the literature and developed four

new dimensions which are not found in the CSI including

personal style consciousness, environment and health

consciousness, reliance on mass media and convenience and

time consciousness. After the data analysis, the study suggests

these new four dimensions are fit to profile the decision styles

of Chinese females.

A common samplingproblem for cross-cultural research is

unclear which populations represent the nation's culture

central tendencies (Nasif et al. 1991, 84). The reliability and

validity of the original CSI were developed using student's

samples, and many researchers acknowledged that the student

population couldn't represent the real population as students

didn't have independent economic. In order to respond to the

comments of the CSI scale which may not be valid in other

countries and culture, our study tend to examine the suitable

of CSI and compares the findings to previous research. Our

study follows the new dimensions which developed by Susan

(2005) and the recommendation methodology for testing the

cross national applicability of scales. The sample used in this

study was the Indonesian females, which located at Depok,

West Java.

The objectives of this study are (1) to test the CSI scales

reliability and validity in Indonesian, (2) to explore

decision-making styles of Indonesian females (3) to establish

a profile of consumer styles for Indonesian females.

III. METHODS

Evidence suggests that the CSI is more applicable to

developed countries (Lysonski, Durvasula and Zotos 1996).

Yet despite 'the Asia being the third large market in the world

and marketing in Asia become more and more complex and

V.ANALYSIS

To examine the applicability of the dimensions, the

analytical methods used in this study were similar toprevious

research on decision making styles. First, factor analysis,the

principal components methods with varimax rotationIi

factors used to identify characteristics of decision making

styles. The amount of variance explained by the eigenvalues

was recorded, and also the item-factor correlations (fact

loadings) were examined too. The correlations among

samples will be deleted when the factor correlations across

samples was less than O.I.

VI. FINDINGS

The results of factor analysis and reliability coefficientsfI

each factor are summarized in Table I.

SHOPPING STYLES DIMENSIONS OF INDONESIAN WORKING FEMALES TABLE I 1 1.1 1.2 1.3 4.3250* 2

2.1 I am willing to pay higher price for famous

brands. 0.7497 0.848 0.762 0.673 0.841 0.6158 Brand consciousness 0.710 4.1500* 3.8667* 0.6733

2.2 In purchasing, I tend to choose those

well-known brands rather than best quality ones.

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ISBN: 978·602·97809·0·1 I preferto buy foreign brands than local

brandseventhough sometimes they are moreexensive. 3.9250* 0.6938 Mostoftheclothesthat Ibuy are of the samebrandname. 0.6739 3.8667*

Eventhoughother brandsmaybe better choices,I sill tend tostick tomyfavorite brands.

0.6805 3.9417*

4.1500* 0.6135 Priceconsciousness

0.7258

0.704

0.734

Ioftenwaituntila store has a saleto sho Iamwillingto spendtimetocompare prices amongshopsinorder to buy somelower

riced roducts.

4.2667* 0.505

4.1833* 0.5506

Relianceon themassmedia

3.8333* 0.6901 0.7127 3.9333* 0.6708 3.7083* 0.6155 Sho in in uences 4.1833* 0.6115 3.8417* Iamconsciousof my economic condition in

bu in decision. 0.6234 4.0583* 0.5639 3.7500* 0.6771 4.1500* 0.6251 0.662 0.698 0.6560 0.775

The sixfactors are summarized. The factors are; quality sciousness, brand consciousness, price consciousness,'

ping influence and reliance on the mass media,

venienceand timeconsciousness.

I) Qualityconsciousness, the factor reflects demand for

a1itygoods. Female are willing to pay higher for their

avoritebrands, Most of the respondents claimed that the

qualityof the goods will be the first elements when they

makingdecision in order toget their preferences.

2) Brandconsciousness, as the second factor, dimensions indicatedmostof respondents like international brands. They

preferto buy international brands than local brands even

Ihoughthey are sometimes more expensive. This also

indicatesthat female respondents are more interested in value fortheirmoney. 0.731 0.802 0.779 0.8667 0.701 0.785 0.6860 0.716 0.741 0.790 0.628

Convenienceand timeconsciousness

0.836 0.836

0.648

3) Price consciousness, as third factor, this factor reflects

the price characteristic; working females found very price

sensitive. They are willing to spend more time to compare

prices among shops in order to buy some lower priced

products and waiting until the sale season. Indonesian

working female will bargain the price of the product, and

good atusing coupons to have a discount.

4) Convenience and time consciousness, they were

significantly more conscious of time and convenience. Prefer

to buy goods in nearby and convenient locations in order to

save time.

0.733

5) Shopping influence, Indonesian working females are

very likely to be influenced by peers and sales people when

making decisions making. They are willing to buy goods

which are recommended by friends and peers. Besides, good

attitude and advices of sales people also influenced the

Proceedings of ICIEBM 2010, Yogyakarta • Indonesia I amwillingto payahigher pricein order to 4.2250* 0.5694

savetime. 0.5695

I usuallybuygoodsin places nearbyand 4.2667

*

0.5694

convenientto me.

0.733

page·211 0.500

(19)

ISBN: 978-602-97809-0-1

purchase intensions of the females.

6) Relianceon massmedia, they always read information on the product packaging carefully before making buying decisions. Most of them are scared of the expired date food that will influence their health condition.

VI. CONCLUSIONS AND IMPLICATIONS

This study modified the measured items of the CSI, which is originally developed by Sproles and Kendall (1986) and Susan (2005). Asix factor model isproposed in this study in

order to explore the shopping styles of Indonesia female. Due to more complexity of global marketplace and consumer

specialist, it is imperative to develop useful scales to profile consumer decision making styles across cultures and countries. Profiling female consumers by exploring their decision making styles and demographic variables provide more critical ways to identify and understand the variety of consumer segments and to target each segment with the marketing strategies.

The CSI was used in this study for investigation because it can be most powerful techniques to explore consumers to their mental orientation toward .shopping. The most important finding in this study is, there is an indication of the generality of several Indonesian female decision-making styles. Also,

decision making styles have attracted much attention from marketers from department store and shopping mall. They are interesting about decision styles that the consumers make, and the strategy that marketers can scaffold in order to stimulate

the buying behavior of different populations. Public policy makers can also identify the differences in consumer decision making styles that could be applied in educational programs

and develop the consumer education programs in order to

educate young people to function effectively asconsumers.

REFERENCES

[1) Bauer, Sauer, and Beeker, "Product-Independent Consumer Decision-Making Styles DoTheyReally Exit?", American Marketing

Association ConferenceProceedings, 13,2002, pp. 174-175.

[2) Gordon,Michael E.,L.Allen Slade,andNeal Schmitt, "Science of the

Sophomore Revisited: From Conjecture to Empiricism", Academy of ManagementReview, 11,1986, pp. 1:91-207.

[3) Lysonski, Steven, Srini Durvasula, and Yiorgos Zotos, "Consumer Decision Making Styles: a Multi Country Investigation", European Journalof Marketing, London:Kogan Page, 1996.

[4) Nasif, Ercan 0., Hamad Al-Daeaj, Bahman Ebrahirni, and Mary S.

Thibodeaux, "Methodological Problems inCrossCultural Research: An Updated Review", Management International Review, 31,1991, pp.

1:79-91.

[5) Rosen, S., "Adolescent Consumer Decision Making Styles: the Consumer Socialization Perspective", Canadian and International

Education,Vol.16 No.1,1996, pp. 190-7.

[6) Sproles,GB.,Kendall,E.L.,"A Methodology for ProfilingConsumers'

Decision-Making Styles", Journalof Consumer Affairs,20(2),1986, pp. 267-279.

[7) Susan H.C. Tai, "Shopping Styles of Working Chinese Females", Journalof Retailing and ConsumerServices12,2005, pp.191-203. [8) Soenhadji, Iman Murtono, "Consumer's Perception and Purchase

Intentions Towards Imported Products: the Indonesian Consumers Attitude", The 50hInternational Conference on Business Management (ICBMR)Proceedings, ISBN978-979-1060-03-5, 2010.

(20)

Department of Industrial Engineering

UIN Sunan Kalijaga

ISBN 978-602-97809-0-1

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References

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