MASTER THESIS Submitted in Partial Fulfillment of the Requirement for the Degree of Magister Manajemen. Ariella Octaviany Kusbianto

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1 THE IMPACTS OF KOREAN WAVE TOWARDS INDONESIAN PEOPLE S DECISIONS IN BUYING KOREAN PRODUCTS: IMPLEMENTATION OF THE MODIFICATION OF THEORY OF PLANNED BEHAVIOR MASTER THESIS Submitted in Partial Fulfillment of the Requirement for the Degree of Magister Manajemen Ariella Octaviany Kusbianto GRADUATE PROGRAM FACULTY OF ECONOMICS AND BUSINESS SATYA WACANA CHRISTIAN UNIVERSITY SALATIGA 2013 i

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5 Do what others don t do, And You ll get what others won t get iv

6 ACKNOWLEDGMENTS Give thanks unto my amazing Lord, Jesus, for His guidance day by day, especially in doing this master thesis. I realize that there are a lot of obstacles that I cannot mention one by one during this thesis writing process. But thank God, because of His guidance, wisdom, love, and patience, finally I could finish it. Now I can accomplish one of the most important moments in my life: making my parents happy and proud of me by achieving my Master s Degree. I believe that He always plans something good to me although I always grumbled and complained during my study in MM UKSW, and even for my future which is still a mystery for me. Also, I would like to give special thanks to: 1. My dad and mom, Ir. Edy Kusbianto and drg. Lany Setiawati Salamoon who keep supporting me financially and morally. Thank you for your love, care, and patience for me. I hope you can be proud of me, although I know that my current achievements are still unequal to your struggles and difficulties in raising such a stubborn and fragile daughter like me. My sacrifice and struggles during my study in MM UKSW is just a piece of cake compared to your love. 2. My supervisor, Prof. Dr. Ir. Sony Heru Priyanto, MM. Many thanks for you, Prof. Thanks for your dedication and patience in v

7 teaching and guiding me since August last year until I finished my thesis. I know you were very busy with your work, but you always give me some time to have consultations. 3. Prof Christantius Dwiatmadja, SE., ME., Ph.D, the chief of Magister Manajemen program in UKSW, Salatiga. 4. All of the lecturers in MM UKSW, Salatiga. Thank you for the knowledge and motivations you shared. I believe it will be useful for my future. 5. Mbak Ira Yuliany who always helped me during my registration until my graduation. Sorry if I often disturb you, Mbak. 6. My grandma, Emak Bik (Widiani Kusbianto). Mak, thank you for your love and care. Also many thanks for delicious food you cooked for me. You were always proud of me, so now I hope I can make you proud of me even more than before. 7. My grandpas and grandma in Heaven: Engkong Anwar Kusbianto, Engkong Bintoro Salamoon, Emak Tamtania. Although you are already in Heaven, I believe that you always prayed for my success. 8. My best friends in MM: Melissa Johan and Lia Yohana. Thank you for your helps, friends. 9. My best friends in high school: Elenia Dwi (Ele), Yasmin Tjondropurnomo (Yasmin), Novita Febriana (Nono), Stevani Agvia (Tep), Felicia Yolanda (Phe2), and Intan Permata Sari (Tan2). We vi

8 studied separately, but I know that our friendship can t be separated. Wish all the best for your studies and careers, Gals:) 10. My dearest auntie and uncle, Iik Inawati Salamoon and Oom Timotius Agus Setiawan. You have been my 2 nd parents. Thank s for loving and supporting me like your own daughter. 11. My little brother, Aloysius Christian Kusbianto (Loy) and my dearest cousin, Christopher Felix Setiawan. My little Bros, thank s a lot for all of your supports. 12. My beloved one, Nathaniel Tirta Adiatma, S.T, Dipl.-Ing. (Koko Nathan). Koko, thank you so much for all; for your love, care, advice, suggestions, and supports. For me, you are God s angel who always makes my world become so colorful. Let s wait for the day when HE unites us to be one flesh. Amin. 13. My boarding house friends: Veronica Dewi and Stevani Vega Lia, SE. Thank you for being my cheerful and caring housemates. Hehehehe Mikha Witama, thank you for helping me collecting my data, so that I can collect my data quickly. It really beneficial for me. 15. My brothers and sisters in Christ in GKI Karangsaru, Semarang. Together, we serve GOD! A.O.K. vii

9 Abstract This study is aimed to find out the impacts of Korean wave towards Indonesian people s decisions in buying Korean products by implementing the modification of Theory of Planned Behavior (TPB). As Korean wave have spreading worldwide, there have been studies about its impacts in many countries in Asia and other continents. There are a lot of evidences that Korean wave positively affects South Korean economic condition. However, there are still limited study about the impacts of Korean wave in Indonesia, especially its effects towards the sales of Korean products in Indonesia. To deal with this topic, The Theory of Planned Behavior was modified to be the model of this study. This study used questionnaires as the primary data. The questionnaires were distributed in GKI Karangsaru, Semarang and also uploaded in social media (Facebook). Most respondents were the members of Komunitas Make Up and Beauty and Indonesian Beauty Blogger groups. Then, the data was analyzed by using AMOS 18. The results obtained are as follows: (1) Korean wave significantly affects Attitude, (2) Attitude significantly affects Behavioral Intention, (3) Korean wave does not significantly affect Subjective Norms, (4) Subjective Norms significantly affects Behavioral Intention, (5) Korean wave does not significantly affect Perceived Behavioral Control, (6) Perceived Behavioral Control significantly affects Behavioral Intention, (7) Perceived Behavioral Control (PBC) indirectly affects Behavior, (8) Actual Control significantly affects Perceived Behavioral Control, (9) Actual Control indirectly affects Behavior, and (10) Behavioral Intention significantly affects Behavior. Keywords: Korean wave, The Theory of Planned Behavior (TPB), Attitude, Subjective Norms, Perceived Behavioral Control, Actual Behavioral Control/Actual Control, Behavioral Intention/Intention, Behavior viii

10 Table of Content Title... i Approval... ii Copyright Statement... iii Motto... iv Acknowledgement... v Abstract... viii Table of Content... ix List of Figures... xi List of Tables... xii List of Appendices...xiii Chapter I Introduction Background of the Study Statement of Problem Research Questions Objective of the Study Scope of the Study Chapter II Review of Literature Theoretical Framework: The Theory of Planned Behavior Korean Wave Attitude Subjective Norms Perceived Behavioral Control Actual Behavioral Control Behavioral Intention Behavior Hypotheses Korean wave towards Attitudes and Attitudes towards Behavioral Intention Korean wave towards Subjective Norms and Subjective Norms towards Behavioral Intention Korean wave towards Perceived Behavioral Control, Perceived Behavioral Control toward Behavioral Intention, and Perceived Behavioral Control toward Behavior Actual Control towards Perceived Behavioral Control Actual Control towards Behavior Behavioral Intention towards Behavior ix

11 Chapter III Methodology Type and Source of the Data Variables Data Collection Methods Operational Definition and the Measurements Technique of Data Analysis Chapter IV Results Demographic Data Gender Age Job Education Income (per month Expenses (per month SEM Analysis Chapter V Discussion Chapter VI Conclussion Summary Theoretical Implication Managerial Implication Limitations and Suggestions for Further Researches References Appendices...77 x

12 List of Figures Figure 1. The Theory of Planned Behavior (Ajzen, 2006) Figure 2. Korean wave and The Theory of Planned Behavior Figure 3. The model of the study using AMOS (the Korean wave in TPB model Figure 4. Demographic Data: Gender Figure 5. Demographic Data: Age Figure 6. Demographic Data: Job Figure 7. Demographic Data: Education Figure 8. Demographic Data: Income/Allowance (per month Figure 9. Demographic Data: Expenses (per month Figure 10. The new model according to the results of the study xi

13 List of Tables Table 1. The effects of Korean wave toward some Asian countries... 3 Table 2. Measurements Table 3. The average of the respondents scores (Gender) Table 4. The average of the respondents scores (Age) Table 5. The average of the respondents scores (Occupation) Table 6. The average of the respondents scores (Education) Table 7. The average of the respondents scores (Income) Table 8. The average of the respondents scores (Expenses) Table 9. The results of the data analyzed by SEM (AMOS 18) xii

14 List of Appendices Appendix A : Questionnaire (English version Appendix B : Questionnaire (Indonesian version Appendix C : Raw Data #1: Understanding towards Korean Wave. 90 Appendix D : Raw Data #2: Frequency in seeing/listening/looking for any elements of Korean wave Appendix E : Raw Data #3: Attitude (At) Appendix F : Raw Data #4: Subjective Norms (SN) Appendix G : Raw Data #5: Perceived Behavioral Control (PBC) Appendix H : Raw Data #6: Actual Behavioral Control (AC) Appendix I : Raw Data #7: Behavioral Intention (Int) Appendix J : Raw Data #8: Behavior (B) Appendix K : Additional Questions xiii