The Influence of Consumers’ Perception and Brand Image on Buying

Interest of the Millenial Generation in Killiney Coffee Shop in Medan

Riza Fanny Meutia, Sukaria Sinulingga, Beby Karina Fawzeea

, and Isfenti Sadalia

Department of Magister Management, Universitas Sumatera Utara, Jl. Sivitas Akademika Kampus USU, Medan, Indonesia

Keywords: Consumers’ Perception, Brand Image. Buying Interest.

Abstract: The research aims to analyze the consumers’ perception and brand image on the buying interest of the

millennial generation in Killiney Coffee Shop in Medan partially and simultaneously. Policies and appropriate

strategies are then formulated to be implemented to develop the business. This is a quantitative research with

associative method using questionnaires as the research instrument. The population is the young generation

whose age is between 20 – 29 in the six outlets: Killiney Coffee Shop Tasbih, Killiney Coffee Shop Cemara

Asri, Killiney Coffee Shop Sun Plaza, Killiney Coffee Shop Hermes Mall, Killiney Coffee Shop RS USU,

Killiney Coffee Shop RCW.

1 INTRODUCTION

Coffee is a type of beverage that is famous throughout

the world. Coffee originated in the Arab region and

developed in Europe, and has now spread throughout

the world. The development of coffee in Indonesia

has increased to become an undoubted market

potential. Indonesia occupies the 10 most coffee

consuming countries in the world (databooks.id

2018). The culinary business in the field of coffee has

expanded its function. At first the coffee shop was

only an answer to the community's need for coffee

consumption. Nowadays the coffee shop has

increased its function as a place to support work

activities. Some coffee connoisseurs also consider

coffee as a lifestyle. From this came the term cafe that

refers to a coffee shop (coffee shop).

The emergence of various competitors in the

coffee shop business competition, makes the

company must use resources more optimally,

including trying to create or do engineering that can

affect consumer perceptions. Consumer perception is

the consumer's perspective on a product, whether it is

good or bad in quality, price, form, and benefits

before the consumer makes a decision to buy the

product. Products or services that are successful in the

market will always have a strong or dominant brand

image in the market. Companies that are sensitive to

the value of a brand, will fully realize that the brand

becomes the identity of the company and becomes an

added value in selling its products.

The brand is not just a term, name, sign, or

symbol, but rather a company promise to consistently

provide images, passion and service to consumers.

Brand image created by the company will shape the

perception of consumers. The product image offered

by the company can be a form of perception in

generating interest in buying the desired product.

Purchase interest is a subjective assessment of what

has been seen or known by consumers for the product

sought, and through considerations supported by the

brand image of the product.

In the past, the coffee shop was not only a place

to spend time while enjoying a cup of coffee. Today

the coffee shop is regenerating by offering an

attractive layout, adding various facilities such as

wifi, and a comfortable place. and provide education

for connoisseurs to get to know the coffee they

consume. What is interesting in the current era of the

younger generation is the education provided by the

company to customers to find out the type of coffee

they consume. If in the past coffee was only interested

in adults, now coffee is also one of the favorite drinks

among young generation. According to Bps 2019 the

following is a picture table of Y and Z generation

percentages based on age in 2015-2017:

Meutia, R., Sinulingga, S., Fawzeea, B. and Sadalia, I.

The Inﬂuence of Consumers’ Perception and Brand Image on Buying Interest of the Millenial Generation in Killiney Coffee Shop in Medan.

DOI: 10.5220/0009199500870090

In Proceedings of the 2nd Economics and Business Inter national Conference (EBIC 2019) - Economics and Business in Industrial Revolution 4.0, pages 87-90

ISBN: 978-989-758-498-5

Figure 1.1.

In Figure 1.1. ages 20-24 years increase every year

compared to ages 25-29 years. It is seen that

Generation Y is currently very dominant. In this era,

the development of technology has greatly increased,

coupled with the development of video games,

gadgets, smartphones and every ease of

computerized-based facilities offered and the

sophistication of the internet, making it easier for

young people to get information quickly. The

character and mindset of the young generation today

is a generation full of visionary and innovative ideas.

Trend is part of the development of the times that are

more in demand at certain times. Today the

development of social media is very rapidly

developing, encouraging business people to create

interesting ideas and content. Market demand that

often turns into a challenge how to make creative

strategies that attract the market. The young

generation's environment which is a potential market

that is worth considering.

1.1 Research Purposes

Referring to the research problem formulation above,

the objectives of this study are:

1. Analyzing the factors of consumer perception and

brand image of Killiney Coffee among the

younger generation of Medan City.

2. Formulating effective policies to overcome the

problem of declining interest in buying Killiney

Coffee products among the younger generation of

Medan City.

1.2 Benefits of Research

The benefits of this research include the following:

1. For Killiney Coffee companies, the results of

research in the form of policies are useful as a

reference for solving the Killiney Coffee brand

positioning problem at this time, outlets that must

be evaluated, marketing strategies in the

digitalization era.

2. For academics, useful as additional references that

can be used as sources or alternative concepts.

3. For researchers, it is useful to provide in

formulating policies in order to provide acquired

knowledge

2 LITERATURE REVIEW

2.1 Perception

According to Kotler and Armstrong in Andespa

(2017) perception is a process used by an individual

to choose to organize and interpret information inputs

to create a meaningful picture of the world.

According to Sitter in Kazmi (2012) perception is

how individuals recognize and interpret stimuli.

According to Monroe et al (2015) Perception

basically involves the process of categorization,

which tends to place new experiences into the

classification of previous experiences.

2.2 Consumers’ Perception

According to Mowen et all (2015) consumer

perception is the process of individuals getting

information, paying attention to information, and

understanding it. According to Aaker in Permana et

all (2014) consumer perceptions will involve things

that are important to customers because each

customer has different interests in a product or

service.

According to Monirul and Han (2012), to

determine the dimensions of consumer perception of

the product are as follows:

a. Freshness,

b. Habitual Facts

c. Different flavors

d. Environment of shop

2.3 Brand

The brand is the first thing the customer thinks of

when they hear it and will share their experience with

the brand (Stratten and Stratten 2018: 12). Brands are

signs, names, terms, symbols, designs, or

combinations that can identify goods and services

from one entrepreneur or group of entrepreneurs, and

can distinguish them from others (Keller, 2013: 30).

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1100000

1150000

1200000

1250000

20‐

25‐

20‐

25‐

20‐

25‐

2015 2016 2017

GenerationYdanZByYear

EBIC 2019 - Economics and Business International Conference 2019

2.4 Brand Image

Brand image is a set of beliefs, ideas, and impressions

that a person has towards a brand (Kotler and Keller

in Negara et al, 2018). Creating a positive brand

image requires a marketing program that is unique,

profitable, and focused so that consumers always

remember it (Keller, 2013: 77). According to Kotler

and Keller (2016: 30) a strong brand image will

develop superior products or services, ensure their

availability, and support them with attractive

communication and reliable performance. The

conclusion of the theory is how a company must be

able to create a positive brand image in order to be

accepted in the market.

According to Keller in Hima (2016: 66), brand

image measurement can be done based on aspects of

a brand, namely:

1. Brands are easy to remember

2. Brands are easily known

3. Brand reputation

2.5 Buying Interest

Engel in Irzandy et all (2017) argues that buying

interest as a driving force or as an intrinsic motive that

is able to encourage someone to pay attention

spontaneously, naturally, easily, without coercion and

selective on a product to then make a buying decision.

According to Schiffman and Kanuk in Maghfiroh et

all (2016) suggested that interest is one of the

psychological aspects that has a considerable

influence on behavioral attitudes that can be

interpreted as a happy attitude towards an object that

makes individuals try to get the object by paying it

with money or sacrifice.

According to Suwandari in Nasution et all (2014)

the indicators of buying interest of a prospective

consumer are:

a. Attention (attention)

b. Interest (interest)

c. Expectations of desire

d. Action.

3 METHOD

This type of research used in this research is

associative research. The approach in this research is

Cross Sectional. According to Sinulingga (2017)

cross sectional, namely studying independent

variables and dependent variables simultaneously at a

certain time. The study was conducted at the Killiney

Coffee shop company, namely the Tasbih Killiney

Coffee shop, Cemara Asri Coffee Shop, Sun Plaza

Coffee Shop, Sunway Coffee Shop, Hermine Mall

Coffee Shop, Killieny Coffee Shop RS .USU,

Killiney Coffee Shop RCW. The population in this

study were all Killiney Coffee shop customers located

in 6 locations, namely Sun Plaza, Hermes Mall,

Rs.USU, Tasbih Complex, and Cemara Asri

Complex, and RCW aged 20-29 years. The sample is

a population taken from a part of the research object.

The sampling technique is accidental sampling.

According to Sugiyono (2009: 85), accidental

sampling is a technique of determining samples based

on coincidences, namely consumers who incidentally

/ incidentally meet with researchers can be used as

samples, if in the eyes of people who happen to be

suitable as a source of data. Samples in the research

were 90 people, by taking 15 respondents in each

outlet. The method of collecting data in this study is

to use questionnaires and interviews with

respondents. Researchers use a Likert scale consisting

of five point scales and then share them with

respondents.

4 RESULTS AND DISCUSSION

Based on the results of tests and discussions that have

been described, then some conclusions can be drawn,

namely:

1. Consumer Perception partially significantly

influences the buying interest of Killiney Coffee

Shop in the younger generation of Medan City.

This means that at outlets that have high buying

interest consumers' perception has been well

developed. Whereas at the low outlets, consumer

perception has not yet formed.

2. Brand Image partially also significantly

influences the buying interest of Killiney Coffee

Shop among the younger generation of Medan

City. This means that some outlets that have a

high brand image have been well developed,

while outlets with a low brand image have not

been built properly.

3. Consumer Perception and Brand Image

simultaneously have a significant effect on buying

interest in Killiney Coffee Shop in the younger

generation of Medan City.

Based on the conclusions above, some

suggestions can be given, namely:

1. At outlets that have low buying interest such as

Sun Plaza and Hermes outlets, efforts should be

made to improve / form consumer perceptions,

brand image partially or simultaneously.

The Inﬂuence of Consumers’ Perception and Brand Image on Buying Interest of the Millenial Generation in Killiney Coffee Shop in Medan

2. In building positive consumer perceptions of

Killiney Coffee, it can be done in various ways

such as creating events at its outlets, sponsoring

certain events, giving compliments to customers

who sit for more than 3 hours and have high

enough bill payments, and adding other facilities.

3. To build a positive brand image of Killiney

Coffee, various methods can be carried out, such

as paying attention to the layout of the coffee

shop, creating Killiney Coffee shop merchandise,

and including the younger generation to increase

interest in buying Killiney Coffee shop.

ACKNOWLEDGEMENTS

We thanks to the Directorate of Research and

Community Service (DRPM) of the Ministry of

Research, Technology and Higher Education for the

financial assistance provided in the preparation of this

study.

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EBIC 2019 - Economics and Business International Conference 2019