Product Differentiation: Can It Be a Right Strategy Instead of Focusing on A Market Leader Position? A Case of Yamaha Lexi and Yamaha Forego in Indonesia

Abstract

Differentiation was a good strategy which at least offered two advantages. Firstly, giving more alternatives to consumers and secondly, increasing sales. However, the strategy should be carefully employed. When a particular product had already been a market leader, the differentiation might jeopardize the position, since resources that likely be more useful to strengthen the position, were in use to encourage the alternatives. The creation of Yamaha Lexi and FreeGo which was arranged to give alternatives beside Yamaha NMax that had already been a market leader, likely didn’t intensify intention to buy. The aim of the study was to look for evidence that market did not support the availability of alternatives. In addition, the relation between perceived quality, perceived price, perceived differentiation and perceived second price to attitude would be tested whether they were suitable determinants of attitude. Furthermore, the study would be further looking for whether the relation of attitude and subjective norm were in accordance with theory of planned behavior. A sample consisted of 122 respondents was withdrawn through judgment and convenience technique. Data submitted by questionnaires, employing Likert scale, ranging from 1= completely disagree to 5= completely agree, and distributed through Google Form. An Amos 22.0 and SPSS 21.0 were exercised toanalyze data. The finding showed that attitude and subjective norm did not produce intention to buy whether Lexi or FreeGo. Perceived quality, perceived price, perceived differentiation and perceived second price did not have significant effect on attitude. Furthermore, the relation of attitude and subjective norm were in accordance with theory of planned behavior.