The Analysis of Retail Store’s Attitudes towards Product Attributes of XYZ Brand of Paint and Its Competitors

Abstract

Business competition in Indonesian’s paints industry was very tight, and forced paints companies have to develop the best strategy to win the competition. Retail segment in paints market in Indonesia is the highest compared with other market segments, so having better knowledge on the retailer’s attitudes will help the company to develop the best business strategy. This research study has been done in retail store and it will support the XYZ company business strategy developments. The results will give a good insight to the future research or to the practitioners’. Objectives of this study were to identify and analyze the attitude of retail paints stores towards products, services and promotional attributes on XYZ brand of paints product and its competitors; analyze the relationship between perception of retail stores on the attributes of its products and services in forming store attitudes and to analyze the relationship between store attitudes on product, services and promotion towards the purchase of XYZ brand by retail stores. A survey method was used in this study. Data collection was carried out by using a structured questionnaire with non-proportional stratified random sampling technique. Data were analyzed by using the Cochran Q test, Fishbein Multi-attributes, Biplot and Regression methods. The results showed that there were seventeen statistically valid attributes based on Cochran Q test. Results of Fishbein Multi-attributes analysis indicated that the XYZ brand paint product has met the consumers’ need and expectations on the product quality, but has not met the needs and expectations of customers on the service and promotional attributes. Biplot analysis’s results indicated that the XYZ brand has a primary identifier on the durability of color, Competitor 1 has a primary identifier in responding speed and Competitor 3 has a primary identifier in the ease of ordering. The value of this research is using paint shop retail as respondent and provided important implication for XYZ brand paint producer. The XYZ Brand producer need to maintain the superiority on products attributes and improved the weaknesses. Factor Analysis Regression of store attitudes on each attributes towards the purchase of XYZ brand by the retail store using factor analysis showed that from seventeen attributes could be factored into five variables named as (a) Service variable, (b) Product variable, (c) Promotion variable (d) Stock availability and (d) Discount and Color cards variable. Statistical calculation using SPSS software showed that there were significant relationships between store attitudes on the service attributes towards store purchase level of XYZ brand of paint at α = 0.05 (Sig = 0,015). The strength of the relationship was indicated on the value of the R². The relationship of these attributes to the paint purchase of retail store were weak (R² = 0.078). It means that there was significant and weak relationship between store attitudes on service towards retail stores’ purchase level of XYZ Brand of paints in retail stores. It is recommended for the future researchers to include a deep interview and experimental method in doing research at the market place. It will help scholars to gain more accurate information.

Keywords: Sales growth, paints, retail stores, Cochran Q test, Fishbein and Biplot.