THE EFFECT OF STORE IMAGE TOWARDS CUSTOMER DECISION IN RETAIL BUSINESS (A STUDY CASE OF FOREVER 21)

Abstract

The objective of the study is to identify the effect of store image towards the customer decision in retail business (a study case of Forever 21). Retail business become the important topic nowdays especially in fashion industry as the part of human needs. And in this research, the researcher wants to find out how big the effect of store image in Forever 21 to their customers decision. The store image itself consist of three variables which are layout (X1), merchandise(X2), and service(X3). The researcher conducted this research at Forever 21 store in Grand Indonesia Shopping Town which is located on Jalan M.H. Thamrin No.1, Jakarta. The data was collected by using questionnaire and spread it to the customers of Forever 21. The researcher obtained 100 respondents for the sample size at the operation hour of the store and via email. The researcher find out three dominant factors of store image which is impact to the customers decision in Forever 21. Layout as the appearance of the store which has the effect for the customers’ attraction, merchandise as the product that customer will buy, and service as the treatment for the customers that they will fell convenient and comfortable in the store. According to multiple regressions analysis shows the formula for this research is Y = 0.616 + 0.631X1 - 0.151X2 + 0.371X3 where X1 = layout, X2 = merchandise, X3 = service, and Y = customer evaluation. The coefficient determinant (adjusted R Square) on this test is 60.3%. F test in this research shows that independent variables simultaneously give influence to dependent variable with significance level 0.00. For T test shows that every independent variable has influence to customer decision with significance value below 0.05.