The Effect of Brand Awareness Sales Promotion Product Quality on Trust and Interest in Buying Low Cost Green
Cars Brand Daihatsu Ayla in the City of Surabaya
Muhammad Nasrullah, I Gede Arimbawa
Department of Management, Narotama University Jl. Arief Rahman Hakim, No. 51, 60117, Surabaya, Indonesia
muhnasrull13@gmail.com, g.arimbawa@narotama.ac.id
Abstract
Purpose:. This study aims to analyze the influence of brand awareness, sales promotion, product quality on the trust and interest in buying Low Cost Green Car Daihatsu Ayla brand in the city of Surabaya.
Research design/metedology: This study was conducted to analyze the presence or absence of relationships between independent and dependent variables. Therefore, researchers use quantitative methods using objective measurements and mathematical analysis. The data analysis technique in this study used Partisl Least Square (PLS). The population of dal am this study is Surbaya residents who are interested in buying a Low Cost Green Car Daihatsu Ayla car in Surabaya as many as 100 people or respondents.
Findings : The results of this study found that the Brand Awareness variable has no effect on Trust, the Brand Awareness variable has no effect on Buying Interest, the sales promotion variable has an effect on Trust , variable sales promotion has an effect on the buying interest variable , product quality variables affect trust, product quality does not affect buying interest , and trust variables do not affect buying interest. The results of this study also suggestthat the indirect influence of the variables of brand awareness, sales promotion, and production quality through trust variables does not affect the buying interest in environmentally friendly cars or Low Cost Green Car brand Daihatsu Ayla in the city of Surabaya
Limitations / Research implications: This research was only conducted in the surabaya city area, so the results of this study cannot be realized or applied in general, therefore the next research to further expand the scope of the research area to the provincial or national level, in addition to the research on mobil Low Cost Green Car or environmentally friendly car not only on one particular brand, and by using other free variables.
Keywords:
Brand Awareness, Buying Interest, Product Quality, Sales Promotion, Trust.
1. Introduction
At this time land transportation is a transportation that is in great demand because this transportation is considered more flexible because it can get directly to the destination, as well as the relatively short community destinationor anaar city. Ground transport there is public transport and private transpration. In Indonesia, people prefer to use private transportation instead of public transportation that has been provided by the government because of the poor quality of public transportation services available. That's not entirely to blame.
Although the Ministry of Transportation already has a design for the development of public transportation, in addition, the public's perception of the means of transportation used has a great influence in the choice of mode.
In various literature, travelers in developing countries do prefer private cars over public transportation due to the prestige factor attached to them. In a country with a growing economy, which then gives rise to high-purchasing groups, private car ownership is a form of self-existence. Private vehicles eventually became a proving ground for success in a career.
Cars consist of several types including SUV, MPV, Hatcback, City Car and Low Cost Green Car (LCGC) Of these types there are advantages and disadvantages. With the rapid environmental issues and the depletion of petroleum supplies, the development of cars leads to the manufacture of low-cost and environmentally friendly cars or known as Low Cost Green Cars (LCGC). This car is a target and is ingreat demand because it is considered that the price of a car is nottoo expensive. In addition, this car is also known for being environmentally friendly and fuel-efficient. Low Cost Green Car ( LCGC) is a government program and is regulated in PP No.33 and 41 of 2013. The Low Cost Green Car (LCGC) car category consists of electric cars, hybrid biodiesel, and low carbon emissions. The presence of this car is intended to suppress the increase in excessive carbon emission gases. Based on the brand holder (APM) in Indonesia, a car that plays in the Low
Ayla and Sigra, Suzuki with Wagon R, and with Datsun GO Panca and GO+. The LCGC segment cars showed quite good sales because the segment still got PPnBM discounts on new cars.
This study examines people's buying interest in Surabaya koita in cars in low cost green cars (LCGC).
According to Schiffman & Kanuk (2008) , buying interest is a model of a person's attitude towards the object of goods that is very suitable in measuring attitudes towards a certain class of products, services, or brands. The buying behavior of a person is something unique, because the preferences and attitudes towards each person's object are different. In addition, consumers come from various segments so that what is wanted and needed is different. There are still many factors that affect consumers' buying interest. Producers must understand consumer behavior towards products on the market and need to do various ways to get consumers interested in the products produced.
The results of an empirical study on the influenceof consumer trust variables on Buying Interest proposed by (Solihin & Wibawanto, 2020), Gunawan (2022), (Rosdiana & Haris, 2018), (Ridwan et al., 2020) found that consumer confidence has a positive impacton buying interest. Trustis the desire to maintain the exchange because it is trusted. The essence of trust is belief, where this belief arises because both parties believe between the seller and the buyer. They consider that both will be trustworthy, have high integrity, be consistent, competent, fair, responsible, helpful and have positive qualities, besides that research on buying interest shows that brand awareness affects buying interest (Taufik, 2019), (Yamawati & Dewi, 2021). These results can be concluded that the better the brand awareness or brand recognition to consumers, the more interested consumers are in buying the brand and vice versa, research on the influence of sales promotion on buying interest results shows that sales promotion has a positive effect on buying interest (Maulana & Mulyana, 2020), (Gandur &
Prasetya, 2022), (Michelle et al., 2021), (Ratih & Rahanatha, 2020). The results of this research can be concluded that a company that does sales promotion well, potential consumers will have an interest in buying from the product. But if the producer does not do sales promotion, consumers will also not have a sense of interest in buying the product. Other researchers examined the quality of products on buying interest conducted by (Santoso & Ramadhan, 2020), (Wiguna et al., 2020), (Krismanita et al., 2022), (Islamuddin & Italia, 2021), (Suleman et al., 2022) showing that product quality has a positive effect on buying interest According to Kotler
& Keller (2012) what is meant by product quality is the ability of a product to perform its functions, which includes the overall durability of the product, reliability, precision, ease of operation and repair, as well as other valuable attributes that mean the product's ability to demonstrate its functionality, it includes total durability, reliability, accuracy, anger and repair of the product and other product attributes. So that the quality of a product can cause buying interest for potential consumers. But there are other research results that show that Brand Awareness has no influence on the Buying Interest studied (Hayati & Dahrani, 2022). Because of the differences in the results of this study, the author suspects that brand awareness can not always trigger buying interest, there may still be other factors according to consumers more importantly to be his concern.
1.1. Belief
According to Mowen & Minor (2002), consumer confidence is all the knowledge possessed by the consumer and all the conclusions that the consumer makes about its objects, attributes and benefits. Objects can be products, people, companies and everything to which a person has beliefs and attitudes. consumers have a big influence in terms of sales because if consumers believe in the brand, it is easier to buy for these consumers, besides that buying interest also affects sales with an interest in buying with the product, consumers will try to own the product. Indicators of trust are as follows: Integrity, Competence, Consistency, Loyalty,
1.2. Brand awareness
Brand awareness or brand awareness is the ability of potential consumers to recognize or recall that a brand is part of a certain product category, According to Kopp et al. (2019) is a marketing term that describes the level of consumer recognition of a product with a name. This means that potential consumers can remember and know the Daihatsu Ayla brand if there is an LCGC (Low Cost Green Car) car, then what they think about is Daihatsu Ayla. Indicators of brand awareness are as follows: Recall, Recognition, Purchase Decision, Consumption
1.3. Sales promotion
Pricing Plans (discounted/discounted transactions), Premium (gift gifts), Contests, sweepstakes, and games, Free testing, Product warranty
1.4. Product Quality
Product Quality according to Armstrong & Kotler (2004) is "the ability of a product to perform its functions, including overall product durability, reliability, precision, ease of operation and repair, and other valuable attributes" which means the ability of a product to demonstrate its functionality, it includes overall durability, reliability, accuracy, ease of operation and product repair as well as product attributes are interpreted as the ability a product in showing its durability and also its ability as a tool to meet consumer needs. Good product quality can increase consumer interest in buying the product so that it can benefit the company and vice versa poor quality will reduce consumer interest in buying the product in question so that it will bring losses to the company. Indicators of product quality are as follows: Performance, Privilege, Reliability, Conformity to specifications, Durability, Aesthetics
2. Methods
This research uses a quantitative approach, where the process uses measurement and objective analysis of mathematical data samples or other research instruments to prove and test hypotheses with the conjectures proposed in this study; Therefore, this study was conducted to determine the presence or absence of a relationship between independent variables and dependent variables. The population of this study is people who are interested in buying LCGC cars in the city of Surabaya, with an unknown amount. The method used in determining the number of samples in this study was the chocran formula with the results of 100 people. This study will use primary data by compiling research instruments in the form of questionnaires. Data collection technique by giving a list of questions or statements made for this study refers to the measurement of variables using the Likert scale. Individuals can respond to five choices on each question, namely:
1. Score 1 for strongly disagree (STS) score 2. Score 2 for disapproval (TS) score, 3. Score 3 for a fairly agree score (CS), 4. Score 4 for agree (S)
5. Score 5 for a strongly agreed score (SS).
Data Analysis Techniques in this study researchers used PLS data analysis techniques using SmartPLS 3.0 software. Partial Least Squares (PLS) is a powerful analytical method and is often referred to as soft modeling because it negates the assumptions of OLS (Ordinary Least Squares) regression, such as data must be distributed normally in a multivariate manner and the absence of multicolonierity problems between variables, would, 1985 in the book (Ghozali & Latan, 2015). The structure of the discussion used by this research realm is as follows : 1. Outer Model Analysis, such as ; Building Reliability and Validity of Discriminant Validity
2. Inner Model Analysis (Structural Model), such as: R-Square, f-Square, Collinearity Statistic (VIF), Direct Effect, Indirect Effect
2.1. Hypothesis:
Hypothesis 1: Brand awareness affects Trust Hypothesis 2: Sales promotion affects Trust Hypothesis 3: Product Quality affects Trust
Hypothesis 4: Brand awareness affects Buying Interest Hypothesis 5: Sales promotion affects Buying Interest Hypothesis 6: Product Quality affects Buying Interest Hypothesis 7: Trust affects Buying Interest
3. Results and discussion 3.1. Result
The calculation results with the help of SmartPLS software obtained the following results :
Table 1. Test the Direct Influence Hypothesis
No Influence Coeffesient
pathways
T
Statistics P-value Information 1. Brand Awareness (X1)-> Celebration (Y1) 0.035 0.517 0.605 Rejected 2. Brand Awareness (X1)-> Buying Interest (Y2) 0.113 0.922 0.357 Rejected 3. Sales Promotion (X2)-> Celebration (Y1) 0.279 2.204 0.028 Accepted 4. Sales Promotion (X2) -> Buying Interest (Y2) 0.357 3.082 0.002 Accepted 5. Product Quality (X3)-> trust (Y1) 0.628 5.818 0.000 Accepted 6. Product Quality (X3)-> Buying Interest (Y2) 0.141 1.107 0.269 Rejected 7. Trust (Y1)-> Buying Interest (Y2) 0.280 1.234 0.218 Rejected
Based on the table above, it can be explained as follows:
1. The effect of the Brand Awareness variable (X1) on the Trust variable (Y1) calculated value of 0.517 <
1.661 with a significance level of 0.605 > 0.05. This means that the variable Brand Awareness(X1) has no direct effect on Trust
2. The effect of the Brand Awareness variable (X1) on the Buy Interest variable (Y2) calculated value of 0.922 < 1.661 with a significance level of 0.357 > 0.05. This means that the Brand Awareness variable (X1) has no direct effect on Buying Interest (Y2).
3. Effect of Sales Promotion Variable (X2) on Trust variable (Y1) calculated value of 2,204 > 1,661 with significance level of 0.028 < 0.50. This means that the sales promotion variable (X2) has a direct effect on Trust (Y1)
4. Effect of Sales Promotion Variable (X2) on variable Mnat Beli (Y2) calculated value of 3,082 > 1,661 with significance level of 0.002 < 0.50. This means that the sales promotion variable (X2) is directly related to the buying interest variable (Y2)
5. The effect of the product quality variable (X3) on the trust variable (Y1) calculated value of 5,818 > 1,661 with a significance level of 0.000 < 0.50. This means that the product quality variable (X3) has a direct effect on trust (Y1)
6. The effect of the product quality variable (X3) on the buying interest variable (Y2) calculated value of 1,107 > 1,661 with a significance level of 0.269 > 0.50. This means that the product quality variable (Y3) does not directly affect buying interest (Y2).
7. The effect of the trust variable (Y1) on the buying interest variable (Y2) calculated value of 1,234 > 1,661 with a significance level of 0.218 > 0.50. This means that the trust variable (Y1) does not directly affect buying interest (Y2).
3.2. Discussion
The analysis and discussion of the results of this study explains the influence of variables of brand awareness, sales promotion, product quality on trust and buying interest.
1. Effect of the Brand Awareness variable(X1) on the Trust variable (Y1)
Based on the results of research that shows the influence of brand awareness (X1) on trust (Y1) obtained a t-statistics value of 0.517 < 1,661 and a p-values value of 0.605 > 0.050, the researcher can conclude that brand awareness (X1) has an insignificant effect on trust (Y1). This result certainly shows that there are still many variables that can affect trust, with good and good brand awareness, consumers do not necessarily believe in the product. With the results of this study, there is an answer that brand awareness does not directly affect trust, meaning that there are still more influential variables to influence trust.
2. Effect of the Brand Awareness variable (X1) on the Buy Interest variable (Y2)
Based on the results of research that shows the influence of brand awareness (X1) on buying interest (Y2) obtained a t-statistics value of 0.922 < 1,661 and a p-values value of 0.357 > 0.050, the researcher can conclude that brand awareness (X1) has an insignificant effect on buying interest (Y2). This result certainly shows that there are still variables that have a greater influence on buying interest, so that products that have good and good brand awareness are not necessarily consumers interested in the product. the results of this study are contrary to
3. Effect of Sales Promotion Variable (X2) on Trust variable (Y1)
Based on the results of research that shows the effect of sales promotion (X2) on trust (Y1) obtaining a t- statistics value of 2,204 > 1,661 and a p-values value of 0.028 < 0.050, the researcher can conclude that sales promotion (X2) has a significant effect on trust (Y1). This result certainly shows that if with good sales promotion and sellers can apply it well, it will cause trust (Y1) by consumers, with the trust that consumers will be interested in buying the product. The results of this study also have a relationship with the variable sales promotion to buying interest because repeatedly buying will naturally arise trust with the product.
4. Effect of Sales Promotion Variable (X2) on Buying Interest variable (Y2)
Based on the results of research that shows the effect of sales promotion (X2) on trust (Y1) obtaining a t- statistics value of 3,082 > 1,661 and a p-values value of 0.002 < 0.050, the researcher can conclude that product quality (X2) has a significant effect on buying interest (Y2). This result certainly shows well that the right sales strategy and applying it well can attract consumers and will cause buying interest (Y2) by consumers, indirectly that consumers also believe in the product because they buy it repeatedly and continuously. The results of this study also support the research that has been carried out by buying (Maulana & Mulyana, 2020) with the results of Sales Promotion research having a positive and significant effect on buying interest, with the conclusion that without Public Relations the process of consumer buying interest can be improved through sales promotion.
5. Effect of product quality variable (X3) on trust variable (Y1)
Based on the results of research that showed the influence of product quality (X2) on trust (Y1) obtained a t-statistics value of 5,818 > 1,661 and a p-values value of 0.000 < 0.050, the researcher can conclude that product quality (X2) has a significant effect on trust (Y1). This result certainly shows that if good product quality will cause trust (Y1) by consumers, from the results of this study it can be found in this study that good product quality will arise a sense of consumer trust in the product.
6. Effect of product quality variable (X3) on buying interest variable (Y2)
Based on the results of research that shows the influence of product quality (X2) on buying interest (Y2) obtained a t-statistics value of 1,107 > 1,661 and a p-values value of 0.269 > 0.050, the researcher can conclude that product quality (X2) has a significant effect on trust (Y1). This result certainly shows that with good product quality, it will cause trust (Y1) by consumers, with trust that consumers can make purchases repeatedly and continuously. The results of this study also support the research that has been carried out by(Suleman et al., 2022) with the results of research Product Quality has a positive and significant effect on Buying Interest, the product has a good appearance, is reliable in all situations, product quality meets expectations, sustainable product development with bona fide brand guarantees is the dominant factor attracting consumers to buy Yamaha NMAX motorcycle products.
7. Effect of trust variable (Y1) on buying interest variable (Y2)
Based on the results of research that shows the influence of trust (X1) on buying interest (Y2) obtained a t- statistics value of 1,234 > 1,661 and a p-values value of 0.218 > 0.050, the researcher can conclude that trust (Y1) has an insignificant effect on buying interest (Y2). This result certainly shows that there are variables that are greater than trust that can cause buying interest by consumers. The results of this study also support the research that has been carried out by (Solihin & Wibawanto, 2020) customer trust has a positive and significant effect on buying interest in the Mikaylaku Online Shop, the results of this study prove that the higher the level of customer trust, the higher the customer's buying interest.
4. Conclusion
Limitations: This research was only conducted in Surabaya, so the results of this study only apply to the in area of the City of Surabaya i, henceforth d i hope that this research area can be developed d i provincial and national areas, and the scope of research is not only on the brand Certain will be for all brands of low cost green cars.
Suggestion: The results of this research are expected to be used as policy-making material for manufacturers and dealers in increasing consumer buying interest in environmentally friendly car products because the results of this study show that it is not enough to rely solely on brand awareness to trigger consumer trust and minat, but there are other things that needs to be a concern as for example ; price, after- sales service, availability of spare parts are easy to get, availability of adequate workshop service , and others.
Recommendium: The results of this study can be used as material for research on buying interest in low cost green car products or environmentally friendly cars, using variables bebas in addition to the free variables above, as well as with a wider scope of research areas such as at the level of provincial, or at the national level.
Thank you
At the end of this article , I would like to thank everyone who is important for the successful
researchers, but also for readers. For this reason, suggestions and criticisms of a constructive nature are expected.
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