The Effect of Brand Equity, Marketing Mix, and Lifestyle to Purchase Decision at Maxx Coffee, Bogor

Coffee becomes one of the important commodities both in terms of consumption and in terms of production. Therefore, the interaction in marketing with the system and its activities should be able to get closer between consumers to products and brand name of the company offered. Nowdays, urban society at this time experiencing lifestyle changes. One of the manifestations of modern lifestyle today is the habit of certain community groups who like to consume coffee in coffee shops. Base on that, the purpose of this research is to identify the characteristics of MAXX Coffee consumer, analyze the influence of brand equity, lifestyle, and marketing mix of MAXX Coffee to consumer purchase decision, and to formulate alternative marketing strategy based on factors influencing marketing mix and brand equity MAXX Coffee. This research using Structural equation Modeling (SEM) with 271 respondent based on convenience sampling method during the reseach time. Based on the results of the research, in order to create strong brand equity, the management of MAXX Coffee Bogor can invest through the improvement of several marketing mix indicators, namely price, people, process, and physical. In the context of MAXX Coffee lifestyle focus to follow the perception of today's consumer lifestyle that wants to improve the prestige and image in the environment around consumers.


Introduction
Coffee has an important role for the economic growth of the people in Indonesia. Currently around 92% of coffee production is under small farmers or cooperatives (AEKI 2016). This percentage percentage makes many business people in Indonesia very interested in making coffee as their business product.
Coffee is an important commodity both in terms of consumption and in terms of production. This can be seen from the amount of coffee consumption per glass which reaches 500 billion glasses per year. Indonesian coffee consumption has increased an average of 7.7% per year, higher than the growth of world coffee consumption with an average of 2.5% per year (ICO 2016). In addition, there were also recorded 25 million small producers around the world who depend on coffee for their livelihoods. The International Coffee Organization (ICO) notes that total world production is 9 million in 2016 and Indonesia is among the 10 largest coffee producing countries (Table 1).  ICO (2016) Based on information obtained from International Coffee Organization (ICO) Coffee Statistics and Indonesian Coffee Exporters and Industries Association (AEKI), overall coffee consumption in the country experienced a significant increase (Table 2). However, most of the coffee consumed by the community is coffee that has been processed and is ready for consumption. The development of a product both in terms of consumption and production resulted in product marketing being so complex. Therefore the interaction in marketing with the system and its activities must be able to bring the consumers closer to the product and the company brand name offered. At this time the marketing aspect not only leads to the function of the marketing mix, but also has been linked to a brand that is able to provide an image of the product that will make the market more focused.
In marketing, brands play a very important role, one of which is bridging consumer expectations when the company promises something that consumers will get. Thus it can be seen that there is an emotional bond that is created between consumers and product producers through brands. Competitors can offer similar products, but they cannot offer the same emotional promise to consumers. Brands with a good image will get good ratings in the eyes of consumers and of course this will increase the value of the product itself. Therefore a brand is an important asset in a business. Although the brand is intangible, the value of a brand is more than tangible.
According to Temporal and Lee (2002), brands can offer many things to consumers. One of them is a clear choice, where a person's experience of a brand will make it easier to choose a brand at the next opportunity, both in terms of brand interest and placement. Another thing is a more robust aspect of the marketing mix, where strong brands are always based on quality. Both of these can affect consumer purchasing decisions on a particular product brand. That is, brand equity which is an impression of a particular product brand can have an important role in consumer purchasing decisions on the product. The stronger the brand equity of a product, the stronger the consumer's confidence in purchasing decisions, so that the company can get profits from time to time.
Along with the development of the times, urban society is currently experiencing lifestyle changes. One manifestation of today's modern lifestyle is the custom of certain groups of people who make coffee cafes as meeting places. A comfortable place with a comfortable atmosphere makes consumers 'feel at home' to subscribe continuously (loyal). Consumers generally prefer coffee shops that are fully equipped and meet the needs they want.
Coffee shops have many benefits for various types of consumers. Consumers use coffee shops for their own sake. Various types of consumers make business competition something that must be considered for entrepreneurs in running and maintaining their business. The coffee shops business is developing, where in almost all shopping malls in Indonesia there are coffee shops whose development is more dominant than other brands namely Starbucks (America), Coffee Bean & Tea Leaf (America), as well as local brands such as XYZ Coffee and Excelso. Sutisna (2002) states that lifestyle is a way of life that is identified by how someone spends their time, what they consider important in their environment, and what they think about themselves and the world around them. Meanwhile, according to Kotler and Armstrong (2008), purchasing decisions are the stage in the decision making process of the buyer where the consumer actually buys. The existence of lifestyle problems that affect consumers to buy a product at the Coffee Shop, makes researchers also want to do research on consumer-focused lifestyles. According to research conducted by Warayuanti and Suyanto (2015) shows that lifestyle has a significant influence on consumer purchasing decisions.
From the phenomenon above, the researcher wants to know how consumer knowledge and assessment in Bogor towards the development of the coffee shop business is measured from the marketing mix, lifestyle, and brand equity to examine how much influence it has on purchasing decisions.
One of the coffee businessmen with the concept of a cafe located in the city of Bogor is XYZ Coffee, this business is engaged in agribusiness that markets various types of native Indonesian coffee or commonly referred to as specialty coffee under the auspices of Lippo Group. XYZ Coffee promises to highlight authentic Indonesian coffee products, such as Aceh-style gayo coffee, Toraja coffee, Kintamani coffee, and Papuan Wamena coffee to boost local coffee sales to compete with imported coffee sales from competitors.
Not only offers an experience of enjoying a variety of authentic Indonesian coffee, XYZ Coffee also wants to make XYZ Coffee a meeting point or a comfortable place to gather various community communities. Some XYZ Coffee outlets are equipped with Wi-Fi facilities up to 100 Mbps. Meanwhile, in order to accelerate the expansion of its outlets, XYZ Coffee has been utilizing the Lippo Group property business in various regions from the start. At the very least, XYZ Coffee outlets will be present on various properties owned by Lippo Group -both in the form of full coffee shops, counters and containers in the parking area. Not only products, XYZ Coffee also offers competitive prices, which are 20-30% cheaper than the incumbent brands. With that affordable price, XYZ Coffee believes it will be able to reach a wider market. Among other things, the regional market is hungry for a new lifestyle.
Cafe businesses or coffee shops that market coffee as a product primarily in the Bogor area until 2017 continue to grow, especially in shopping malls. The business competition encouraged XYZ Coffee to formulate and also implement strategies to win the market. In conditions of intense competition, XYZ Coffee cannot only focus its attention on the products that have been produced. But on the contrary also think about how to be pursued through the right marketing strategy so that the products produced can attract consumers' attention, so that ultimately consumers decide to buy their products and become loyal customers. This will make the company maintain its life cycle and develop well in the face of competitors from similar products.
Competition makes the company must be smart in determining the marketing mix, understanding how the consumer's lifestyle, and the brand equity used. The factors that support the purchase decision are the marketing mix.
Service marketing mix consists of product, price, place, promotion, people, physical and process (Lovelock et al. 2011). Factors that support lifestyles are elements of consumer activity, interests, and opinions. As for brand equity, factors that support purchasing decisions are brand awareness, brand association, perceived quality, and brand loyalty.
Currently consumers not only weigh one type of product in relation to other products but also differences in brand, quality and place of purchase. In addition, XYZ Coffee is also required to understand the lifestyle patterns of its consumers. By knowing the strength of the brand and the form of the lifestyle of the consumer it will be able to obtain an overview of the success of a company in developing, strengthening and managing the survival of the company.
One of the obstacles faced is the limited knowledge of XYZ Coffee entrepreneurs about the extent to which consumers know the XYZ Coffee brand and are loyal to it. In addition, other obstacles such as the existence of old players (competitors) and the increasingly dynamic business environment requires XYZ Coffee to have strong brand awareness in order to compete and win the market. For this reason, XYZ Coffee under the auspices of Lippo Group needs to build the foundation of the marketing mix, brand equity, and understanding of the lifestyle of its consumers through various means.
Until now, the goal targeted by XYZ Coffee to compete with imported coffee-based coffee cafes has not been achieved and has not been able to maximize awareness of the brand of XYZ Coffee itself to consumers. This research became significant, when XYZ Coffee Bogor stated that they had not found the right form of marketing strategy in accordance with the behavior of consumers in deciding to buy products. This problem is the basis for researchers to conduct an analysis of marketing, lifestyle and brand equity in the XYZ Coffee brand in Lippo Plaza Ekalokasari and Lippo Keboen Raya, with the formulation of the problem whether consumer purchasing decisions are influenced by each element in the marketing mix, lifestyle and brand equity.

Methods
This study was conducted from December 2016 until January 2017 in one of coffee shops under the auspices of Lippo Group and is a franchise business located in two shopping centers, at Lippo Plaza Ekalokasari and Lippo Keboen Raya in the city of Bogor, namely XYZ Coffee.
The sampling technique was conducted using non-probability sampling, namely convenience sampling technique . The criteria of the respondents studied were: Getting to know and having knowledge about XYZ Coffee coffee shop in Bogor, a minimum visit of 2 times to XYZ Coffee to measure the impression of brand quality and loyalty, and Aged between 18-50 years.
With the criteria mentioned, anyone who happens to meet researchers at XYZ Coffee Lippo Plaza Bogor and Lippo Keboen Raya Bogor during the study period and according to the criteria, will be made the respondent. The determination of the number of examples in this study is based on the rule of thumb theory according to Hair et al. (2006), the number of samples needed for each exogenous and endogenous variable parameter estimation is five to ten observations. The number of indicator variables in this study is 49, so the number of samples agreed to be taken is 320, but that can be a sample of 271 respondents.
The data used in this study are primary data and secondary data. Primary data is obtained from interviews and questionnaires. The questionnaire provided contains closed (structured) questions where the answers are in the form of several choices determined by the researcher. The making of the questionnaire in accordance with the variables to be studied was modified from the research questionnaire Fitrahdini et al. (2010). Closed questions are questions that are made in such a way that the respondent is limited to giving answers to certain alternative answers. Answer questions are made on a Likert scale that uses a scale of 1-5. The five levels include: 1 = "strongly disagree", 2 = "disagree", 3 = "neutral", 4 = "agree", and 5 = "strongly agree". The scale is used to express the attitude of respondents to various management functions.
The questionnaire contains questions from various variable indicators. Brand equity variables consist of indicators of brand awareness, brand association, perceived quality, and brand loyalty. Brand equity is the most important value for marketers because it represents the company to explain to consumers that their products are the best. According to Sumarendra (2011), Sihaloho (2011, Winatapradja (2013), if the company has a popular brand and the brand is viewed well by the target market, then it will be a victory in fierce competition and increase consumer purchasing decisions.
The marketing mix variables consist of product, price, place, promotion, people, process, and physical environment indicators. Agustian et al. (2015) and Nguyen et al. (2015) stated that the marketing mix has a significant effect on consumer decisions through consumer behavior. Marketing mix not only makes consumers make purchasing decisions but also makes purchases that are sustainable (Kangwannithipong 2016).
Lifestyle variables consist of indicators of activity, interests and opinions. Silvya (2009) revealed that "Lifestyle which is part of the behavior of consumers also influences the actions of consumers in making purchases".
Secondary data obtained from the results of company reports, company statistics, results of previous studies, and literature related to research titles obtained from journals, books, articles and the internet.
The acquired data were analyzed using descriptive analysis and structural equation modeling (SEM) on the structural model used. Structural Equation Model (SEM) is a statistical model that provides approximate calculations of the strength of hypothetical relationships between variables in a theoretical model, either directly or indirectly through intervening variables, which allows testing of a more complex series or network model (Haryono & Wardoyo 2012). See Figure  1 for the study of the conceptual logical framework. The research hypothesis is as follows: 1. H1: Brand equity have a significant influence on purchase decision 2. H2: Marketing mix has a significant influence on brand equity 3. H3: Marketing mix has a significant influence on purchase decision 4. H4: Lifestyle has a significant influence on purchase decision

Research purposes
Types and sources of data Data analysis Output Identify and analyze consumer characteristics, purchasing decision processes, and consumer consumption patterns

Respondent Characteristic
Respondents in this study were consumers who had purchased XYZ Coffee Bogor products in the past one month.The final acquired data were 271 questionnaires in the range of age 18 to 60. Respondents' characteristics described the diversity in respondent's profile data that represented market segmentation on XYZ Coffee product consumers.
Female respondents in this study were 52 percent, and the difference was not far from male respondents as much as 48 percent. Respondent age distribution was dominated by the age range 18 to 27 years and ages 28 to 38 years with the percentage of 36.53 percent and 39.48 percent respectively. Respondents were mostly undergraduate namely 54.2 percent and 72% married. The profession as an employee in a private company has a portion of 49.8 percent. They mostly (41%) spent IDR 2,000,000 to 4,000,000 per month as average expenses for food and beverages. Table 4 Characteristics of consumer respondents XYZ Coffee products

Correlation
Evaluation process can assess the fit level between original data (field data) and the designed model. According to Hair (1998), fit evaluation is carried out in several steps, i.e. overall model fit, measurement model fit, and structural model fit. When hypothesised model is yet to be a fit model, researcher can conduct model re-specification to reach good fit value. Therefore, it is necessary to have proper theory approach when conducting model re-specification (Wijanto, 2008).
Overall model fit data result after re-specification was an initial model result that eliminated several invalid indicator variables from initial measurement model step. Model measurement result after re-specification showed good fit p-value, i.e. 0.166 compared to initial poor fit value that was not in accordance with basic pvalue ( 0.05). Overall model result that had been through elimination was used for the next step, i.e., measurement model fit step. Measurement model fit step (second step) was carried out on each latent variable by testing construct validity and reliability. Indicator is valid when it has loading (λ) value with latent variable to be measured >0.5 (rule of thumb -Hair, Black & Tatham, 2006) and has t-value of >1.96 (Wijanto, 2008). Measurement model is the result of all valid variables.  Third, see Figure 2 for the result of measurement model and its factor loading value and t-value. The result of t-value test indicated that all exogenous and endogenous manifest variables had t-value of above 1.96, meaning that the indicator had significant relation with their each latent variable. It means all indicators were capable of reflecting their latent variables.

Hypothesis testing
According to t-value and path coefficient in the result, there were several variables significantly and insignificantly influence purchase decision (Table 5).

Relationship Between Brand Equity Dimensions and Purchase Decisions
Brand equity variables have a direct and significant effect on the purchase decision process with an estimated coefficient value of 0.14. This shows that the higher brand equity (brand awareness, brand association, brand loyalty, and brand perception), the higher the purchasing decision at XYZ Coffee Bogor. Another study that supports the results of this study was conducted by Massie (2013), which states that jointly brand equity (brand awareness, brand association, brand loyalty, and brand quality perception) have a significant effect on consumer purchasing decisions. The results of this study are supported by the theory proposed by Durianto et al. (2004) that brand equity is very important or useful because it facilitates the purchasing decision-making process, because consumers can easily distinguish the products they buy with other products.

Relationship Between Dimensions of Marketing Mix and Brand Equity
Variable marketing mix directly affects brand equity. Processing results obtained by the estimated coefficient of 0.14 means that the higher the marketing mix variable, the stronger the brand equity will be. To build and strengthen brand equity, a supporting marketing mix is needed that is expected to properly influence consumer perceptions and increase the positive value of consumers towards the products or services offered so that the brand equity of a product can increase.
In accordance with the research of Yoo et al. (2000) which examined marketing activities on brand equity in consumer-specialty goods products, tested on banking services products. This study aims to analyze the marketing mix that influences the strengthening of brand equity and analyzes the influence of brand equity dimensions on brand equity.

The Influence of Marketing Mix Factors (Product, Price, Place, Promotion, People, Process, and Physical Evidence) on Purchase Decision
The most influential variables to the smallest affect the marketing mix, namely, Price, People, Process and Physical Evidence with the same results (loading value 1.00), Place / Location (loading value 0.99), Promotion (loading value 0.93), and Product (loading value 0.91). The variables of people, processes, and physical evidence have the most influence on the marketing mix so that it can be interpreted that in order to increase the marketing of the XYZ Coffee brand, entrepreneurs need to fulfill the expectations of consumers with the current lifestyle to maximize service compared to the products they offer. The marketing mix variable has an indirect effect on the purchase decision process. Processing results obtained by the estimation coefficient of 0.03 and t-count value of 0.93 which means that the greater the contribution to the marketing mix indicator, then not necessarily the greater the purchase decision. This is because the research respondents are repetitive buyers, so that the marketing mix variables no longer have a direct effect on purchasing decisions, or based on the results of SEM analysis, it can be said that the marketing mix variables are mediating variables or false variables on purchasing decisions.

The Influence of Lifestyle Factors (Activity, Interest, and Opinion) Group on Purchase Decision
The estimation result of 0.49 shows that Lifestyle has a direct positive effect on purchasing decisions. This is because the more luxurious or high lifestyle of XYZ Coffee Bogor customers, the higher the Purchasing Decision at XYZ Coffee Bogor. Overall from the results of the score recapitulation of 3 (three) lifestyle indicators explained that in the respondents related to lifestyle is dominated by the desire of customers to visit XYZ Coffee Bogor just to enjoy services at XYZ Coffee Bogor, pamper themselves, and increase prestige. This shows that the fulfillment of consumer expectations to improve lifestyles and imagery in their environment will have an impact on consumer purchasing decisions at XYZ Coffee Bogor. The results of this study are in accordance with the results of a previous study conducted by Fatharani (2013) which states that lifestyle has a positive and significant influence partially on the decision to purchase Blackberry Cell Phones. Fatharani (2013) concluded that by buying a Blackberry cellular phone, the buyer would feel his lifestyle increased in accordance with the expectations of today's consumers who want a luxurious lifestyle with a good image in the surrounding environment.

Discussion
Managerial implication was determined based on three elements of marketing strategy, i.e., Segmenting, Targeting, and Positioning (STP). Basically STP was used to put a brand in consumers' mind in such way so the brand has continuous competitive eminence.
Segmenting, based on consumer knowledge variables, can be seen from the indicators of consumers who know the XYZ Coffee brand. Targeting, potential consumers of XYZ Coffee products are consumers of productive age and sufficient income and have considerable expenditure on food and beverages based on consumer characteristics, where consumers with these characteristics are consumers who have established lifestyle and good image so that consumers get these characteristics are the most dominant in purchasing XYZ Coffee products.
Positioning, based on the superiority of the XYZ Coffee brand, XYZ Coffee has the benefits that are perceived (proven) by consumers and prices are in accordance with the purchasing power of consumers. Based on the product positioning on consumers, what marketers need to do is when promoting both the print and electronic media should put forward the message that the XYZ Coffee brand has guaranteed quality. So that the message can attract new consumers to try XYZ Coffee products.

Conclusion
In the price dimension, the company uses a market based pricing strategy, the price is determined by considering competitiveness in order to create the right value. Promotional activities that provide the biggest contribution are marketing through electronic media. Quality perception is influenced by the quality of XYZ Coffee Bogor that can be relied upon. Profile analysis states that the perception dimension provides the greatest contribution to the establishment of XYZ Coffee brand equity in Bogor City.
Managerial implications in the context of the marketing mix include increasing the aspects of services in the marketing mix (processes, people, and physical evidence) because currently based on research, that is the main reason for consumers to make purchases. Managerial implications in the lifestyle context are following the perceptions of the current lifestyle of consumers who want to increase prestige and image in the environment around consumers.

Recommendation
It needs to considered for further research with similar themes. Some of these deficiencies can be met by further research which includes a discussion of: 1.
Addition of other variables that are thought to influence purchasing decisions, such as perception, motivation, environmental influences, psychological processes, and preferences.

2.
Constraints in this study include the absence of the population of Bogor City so that the determination of the sample cannot be determined from the population of Bogor City and because not all samples are residents of Bogor City.