View of The Influence of Brand Ambassador, Product Quality, Discounts and Free Shipping on Azarine's Purchasing Decision at Shopee (Study on Management Students of Narotama University Surabaya Class of 2019)

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The Influence of Brand Ambassador, Product Quality, Discounts and Free Shipping on Azarine's Purchasing Decision at Shopee (Study on Management Students of

Narotama University Surabaya Class of 2019)

Mia Putri Jayanti, Ani Wulandari Departmen of Management, Narotama University Jl. Arief Rachman Hakim, No.51, 60117, Surabaya, Indonesia

[email protected], [email protected]

Abstract

This study aims to analyze the influence of brand ambassadors, product quality, discounts and free shipping on the decision to buy azarine at shopee in management students of Narotama University Surabaya class of 2019.

The population in this study is all consumers in management students of Narotama University Surabaya Class of 2019. The sampling technique uses purposive sampling by taking 100 respondents. Data collection through the dissemination of questionnaires. The data analysis method uses Multiple Linear Regression through the IBM SPSS version 26 for windows application. The results of the study stated that brand ambassadors, product quality, discounts partially had a significant effect on purchasing decisions, while the variables of free shipping partially had a significant effect but opposed to purchasing decisions. Simultaneously, the variables of brand ambassador, product quality, discounts and free shipping have a significant effect on Azarine's purchase decision at Shopee at Narotama University Surabaya Management Students Class of 2019.

Keywords:

Brand ambassador, Discount, Free Shipping, Product Quality, Purchase Decision

1. Introduction

Online shopping is one of the most common things or a dependency in the past decade. In addition to the price difference that is much different from offline shopping, online shopping is also very practical and efficient.

The e-commerce sector is expected to grow by 37% on an annual basis. This is in line with the continued increase in internet and social media users.

One of the factors that cause online shopping to be very loved by the public is because of the "free shipping" feature. One of the programs that are quite well known to the public is the free shipping promo (shipping) throughout Indonesia. The free shipping program successfully gives its customers a special impression. In addition to making it easier, online shopping is also considered very cheap because of the free shipping.

The element that also encourages more and more online purchases is the existence of a brand ambassador who acts as a medium of communication between companies and consumers, aiming to maintain brand relations with the public as consumers, product sales figures can also increase. Using a South Korean celebrity brand ambassador who is currently being loved will certainly move fans to buy it. According to Twitter statistics released towards the end of 2020, Indonesia is recorded to be ranked fourth as the country with the highest number of K-Pop fans on Twitter, just below the United States, Japan and South Korea. The phenomenon of local brands holding them as the face of their brand cannot be separated from the marketing strategy of the brand. Through this phenomenon, local brands try to improve the brand image for their products and achieve sales targets. Azarine is a local product that uses one of Korea's most popular artists, Lee Min Hoo as its Brand Ambassador.

In addition to the elements mentioned above, product quality is one of the things that need to be considered. When going to buy something, a customer will definitely repurchase if it is judged that the goods purchased have good quality. Good product quality will provide a sense of satisfaction, so that in the end the purchase rate will increase by itself, and the company is able to get a large profit or profit.

No less important factor when going to buy something is the discount factor. A consumer will definitely not think long when there is a discounted item because the buyer thinks it can save his money when discounted.

Thus discounts help both sellers and buyers. As we know, e-commerce, especially shopee, often provides discounts such as discounts on twin dates and months such as shopee 9.9 shopping days, so that this can attract its own interest among the Indonesian people.

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Azarine Cosmetics skincare products initiated by Cella Vanessa are local skincare products that are often mistaken for coming from abroad. It has excellent quality, it is not wrong if there are many people who think Azarine is an external product. Azarine has many product variants including products for acne-prone skin, products to brighten the skin, products for sensitive skin and so on, Azarine has been declared worthy of circulation by BPOM and has halal certification. With good product quality and worldwide brand ambassador Lee Min Hoo, it's no wonder that Azarine has always been the talk of late.

Based on the phenomenon above, researchers are interested in conducting research with the title "The Influence of Brand Ambassador, Product Quality, Discounts and Free Shipping on Azarine's Purchasing Decision at Shopee (Study on Management Students of Narotama University Surabaya Class of 2019) SURABAYA".

1.1. Theoretical Review 1.1.1. Brand Ambassador

According to Kotler & Keller, (2018), explaining that a brand ambassador is an advertising supporter or also called a product spokesperson chosen from a famous person or unknown person who has an attractive appearance to attract the attention and memory of consumers. Another opinion expressed by Lea Greenwood in (Varreldiazka et al., 2022), brand ambassadors are representatives of a company's identity or brand, and they serve as a channel of communication and relationship between the company and the general public about how the company can increase sales effectively.

1.1.2. Product Quality

According to Kotler dan Keller, (2016), product quality is the ability that a product uses to perform its functions, these capabilities include durability, reliability, and precision, all of which the product gets as a whole. According to Tjiptono, (2012), the traditional definition of quality is performance as a description of a product in the long term, such as easy to wear, aesthetics, and so on.

1.1.3. Discounts

According to Kotler dan Keller, (2016), a discount is a direct reduction of the price of goods on purchase over a certain period of time. On the contrary according to Tjiptono, (2007) , a discount is a rebate offered by the seller to the buyer as payment for certain actions that the buyer performs that is pleasant to the seller.

1.1.4. Free Shipping

According to Himayati et al., (2020) shipping costs are the cost of shipping goods or services requested by the seller from the buyer during the buying and selling process with shipping costs charged by the buyer.

Meanwhile, according to Modalbisnis.id, (2020) Free Shipping here is a special offer offered by online business people to attract customers to make purchases.

1.1.5. Purchase Decision

According to Kotler dan Keller, (2016), a purchase decision is a stage carried out by consumers before making a purchase decision on a product. Purchasing decision according to Tjiptono, (2012) is a process where the buyer finds out the problem, finds information about a particular product or brand and evaluates some of these alternatives to be used in solving the problem, which then leads him to the purchase decision.

1.1.6. Hypotheses

H1: Brand Ambassadors partially have a significant effect on purchasing decisions H2: Product Quality partially has asignificant effect on purchasing decisions H3: Discount partially have a significant effect on purchasing decisions H4: Free Shipping partially has a significant effect on purchasing decisions

H5: Brand Ambassador, Product Quality, Discount and Free Shipping simultaneously have a significant effect on purchasing decisions

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119 Figure 1. Hypotesess

2. Methodology

This research was conducted on management students of Narotama University Surabaya class of 2019 who had bought Azarine at Shopee. This type of research uses quantitative research using the purposive sampling method with 100 respondents.

The types of data obtained from this study are primary data and secondary data. The data collection technique used in this study was in the form of a questionnaire. The distribution of questionnaires was carried out by researchers using the Likert scale (1-5 points). Each variable to be measured will be grouped into variable indicators that will be converted into a statement instrument that will be included in the research questionnaire.

Before testing the research hypothesis, the validity and reliability of the questionnaire and the classical assumption test are tested first, in order to ensure that the multiple linear regression tests can be used in the study, the validity and reliability test and the classical assumption must be met first. The analysis method used in this study is multiple regression analysis with t and F tests.

3. Results

3.1.

Validity Test

Table 1. X1 Validity Test

No Rcount Rtable Explanation

1.

2.

0,893 0,843

0,196 0,196

Valid Valid

3. 0,537 0,196 Valid

4. 0,786 0,196 Valid

5. 0,793 0,196 Valid

Source: IBM SPSS 26 analysis result. 2023

Based on the table shows that all r values for questionnaire items on variable X1, r values are greater than r-table values, and then all questionnaires are declared valid.

1.

2.

0,752 0,883

0,196 0,196

Valid Valid

3. 0,877 0,196 Valid

4. 0,856 0,196 Valid

5. 0,601 0,196 Valid

Based on the table shows that all r values for questionnaire items on the variable X2, r values are greater than the r-table values, and then all questionnaires are declared valid.

1. 0,899 0,196 Valid

2. 0,945 0,196 Valid

3. 0,884 0,196 Valid

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Based on the table shows that all r values for questionnaire items on variable X3, r values are greater than the r-table values, and then all questionnaires are declared valid.

1. 0,910 0,196 Valid

2. 0,915 0,196 Valid

Based on the table shows that all r values for questionnaire items on the variable X4, r values are greater than the r-table values, and then all questionnaires are declared valid.

Table 5. Y Validity Test

1.

2.

0,652 0,827

0,196 0,196

Valid Valid

3. 0,816 0,196 Valid

4. 0,841 0,196 Valid

5. 0,754 0,196 Valid

Based on the table shows that all r values for the questionnaire item on the variable Y, the value of r is greater than the value of the r-table, and then all questionnaires are declared valid.

3.2.

Reliability Test

Table 5. Reliability Test

No Variable Cronbach‟s Alpha Explanation

1. Brand Ambassador 0,831 Reliable

2. Product Quality 0,847 Reliable

3. Discount 0,894 Reliable

4. Free Shiping 0,800 Reliable

5. Buying Decision 0,839 Reliable

The data reliability tester in the table above shows that all variables in this study have Cronbach's Alpha coefficient (α) greater than 0.06 so it can be said that all the measurement concepts of each variable from the questionnaire are reliable.

3.3. Normality Test

Table 6. One-Sample Kolmogorov-Smirnov Test Unstandardized Residual

N 100

Normal Parametersa.b Mean .0000000

Std. Deviation 1.58159635

Most Extreme Differences Absolute .058

Positive .058

Negative -.055

Test Statistic .058

Asymp. Sig. (2-tailed) .200c.d

From the results of the Kolmogorov-Smirnov test, it is known that the significance or probability value of 0.200 is greater than 0.05, so it can be stated that all data are distributed normally.

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121 3.4.

Multicholinearity Test

Table 7. Multicollinearity Test

Tolerance VIF Explanation

X1 0,947 1,056 No Multicholinearity

Based on the table above, it is known that all data do not occur multicollinearity.

3.5.

Heteroskedasticity Test

Figure 2. Heteroscedasticity Test

If the plot is irregular and spreads between the X and Y axes, it can be concluded that there is no heteroskedasticity.

3.6. Multiple Linear Regressions

Table 8. Multiple Linear Regressions

Type Unstandardized Coefficients

B Std. Error

1

(Constant) 11,914 2,030

Brand Ambassador ,252 ,076

Product Quality ,139 ,042

Discount ,199 ,071

Free Shipping -,361 ,125

Source: SPSS 2 2 analysis result. 2022

Y = 11.914 + 0.252 X1 + 0.139 X2 + 0.199X3 + 0.125X4

1. 0.252 (X1)is the value of the regression coefficient from the variable X1 to Y, meaning that if the variable X1 increases by one unit, then Y will increase by 0.252 or 25.2%.

2. 0.139 (X2)is the value of the regression coefficient from the variable X2 to Y, meaning that if the variable X2 increases by one unit, then Y will increase by 0.139 or 13.9%.

3. 0.199 (X3)is the value of the regression coefficient from the variable X3 to Y, meaning that if the variable X3 increases by one unit, then Y will increase by 0.199 or 19.9%

4. -0.361 (X 4)is the value of the regression coefficient from the variable X 4 to Y, meaning that if the variable X 4 increases by one unit, then Y will decrease by 0.361 or decrease by 36.1 %

3.7.

Partial Significance Test (T Test)

t table = t(α/2; n-k)

= t (0.05 / 2; 100-5)

= t (0.025; 95)

= 1.985

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122 Table 9. t Test Model

T Sig.

Brand Ambassador 3,299 ,001

Product quality Discount

3,321 2,789

,001 ,006

Free Shipping -2,886 ,005

Source: IBM SPSS 26 analysis result. 2023 1. Testing the first hypothesis (H1)

2. It is known that the value of Sig for the influence of X1 on Y is 0.001 < 0.05 and the value of t count is 3.299 > 1.985 so it can be concluded that H1 is accepted which means that there is a partial influence of X1 on Y.

3. Testing the second hypothesis (H2)

4. It is known that the value of Sig for the effect of X2 on Y is 0.0 01 < 0.05 and the value of t count is 3.321>

1.985 so it can be concluded that H2 is accepted, which means that there is a partial influence of X2 on Y.

5. Testing the third hypothesis (H3)

6. It is known that the value of Sig for the effect of X3 on Y is 0.0 06 <0.05 and the value of t count is 2.789 >

1.985 so it can be concluded that H3 is accepted, which means that there is a partial influence of X3 on Y.

7. Testing the fourth hypothesis (H4)

8. It is known that the value of Sig for the effect of X4 on Y is 0.0 05 <0.05 and the value of t count is 9. -2,866 < 1,983 so it can be concluded that H 4 is accepted, which means there is a partial but opposite

influence X4 on Y.

3.8.

Simultaneous Significant Test (F Test)

F table = F (k-1; n-k)

= F (5-1; 100-5)

= F (4; 95)

= 2.47

Table 10. ANOVA ANOVA^a

Model Sum of Squares df Mean Square F Sig.

1

Regression 125,267 4 31,317 12,014 ,000b

Residual 247,643 95 2,607

Total 372,910 99

Based on the above output, it is known that the significance values for X1, X2, X3, and X4 simultaneously against Y are 0.000 < 0.05 and the calculated F values are 12.014 > 2.47, so it can be concluded that H5 is accepted which means that there is an influence of X1, X2, X3,, and X4 simultaneously simultaneously had a significant effect on Y.

3.9.

Coefficient of Determination Test (R

²

)

Table 11. Determination Test

Model R Square Adjusted R Square

,336 ,308

Based on the output, it is known that the value of Adjusted R Square is 0, 308, this means that the influence of the variables X1, X2, X3 and X4 simultaneously on the variable Y is 30, 8 %.

4. Discussion

The following are the results of the analysis and discussion that has been processed using IBM SPSS version 26. From the results of testing data involving 100 respondents.

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4.1. The Influence of Brand Ambassadors on Purchasing Decisions

Based on the research conducted, the brand ambassador variable (X1) has a positive effect on purchasing decisions (Y). Judging from the results of the hypothesis test, it is known that the sig value for the effect of X1 on Y is 0.001. Because Sig-Value (0.001) < Sig. Tolerance (0.05), the brand ambassador's influence on purchasing decisions proved significant. Thus, the hypothesis proposed "brand ambassadors have a significant influence on purchasing decisions" received support in this study in a positive direction. This is in line with the research of Varreldiazka et al., (2022) which shows that the brand ambassador variable has a significant effect on the purchase decision variable.

4.2. Effect of Product Quality on Purchasing Decisions

Based on the research conducted, the product quality variable (X2) positively affects the purchase decision (Y). Judging by the results of the hypothesis test, it is known that the sig value for the influence of X2 on Y is 0.001. Because Sig-Value (0.0 01) < Sig.Tolerance (0.05), the effect of product quality on purchasing decisions proved significant. Thus, the proposed hypothesis "product quality has a significant influence on purchasing decisions" is supported in this study in a positive direction. So, in line with the research of Ummat &

Hayuningtias, (2022) shows that product quality has a significant or partial effect on purchasing decisions.

4.3. The Effect of Discounts on Purchasing Flexibility

Based on the research conducted, the discount variable (X3) positively affects the purchase decision (Y).

Judging by the results of the hypothesis test, it is known that the sig value for the influence of X2 on Y is 0.006.

Because Sig-Value (0.0 06) < Sig.Tolerance (0.05), the effect of discounts on purchasing decisions proved significant. Thus, the proposed hypothesis "discounts have a significant influence on purchasing decisions" is supported in this study in a positive direction. So, in line with the research of Alghifari & Rahayu, (2021) shows that discounts have a significant or partial effect and on purchasing decisions.

4.4. The Effect of Free Shipping on Purchasing Flexibility

Based on the research conducted, the free shipping variable (X 4) negatively affects the purchase decision (Y). Judging by the results of the hypothesis test, it is known that the sig value for the influence of X4 against Y is 0.005. Because Sig-Value (0.0 05) < Sig.Tolerance (0.05), the effect of free shipping on purchasing decisions proved significant. Thus, the proposed hypothesis of "free shipping has a significant influence on purchasing decisions" is supported in this study in a negative direction. So, in line with research by Alfitroch, (2022) shows that free shipping has a significant or partial effect on purchasing decisions but is opposite.

4.5. Influence of Brand Ambassadors, Product Quality, Discounts and Free Shipping on Purchasing Decisions

Based on the research conducted, the cultural variables of Brand Ambassador (X1), Product Quality (X2), Discount (X3) and Free Shipping (X4) simultaneously have a positive effect on Purchasing Decisions (Y).

Judging from the results of the hypothesis test, it is known that the sig value for all variables X against Y is equal to 0.000 < 0.05. The calculated F result shows a value of 12.014 while table F shows a value of 2.47, so the calculated F is greater than table F. This means that Brand Ambassador, Product Quality, Discounts and Free Shipping have a significant or simultaneous effect on the Purchase Decision.

5. Conclusions

Based on the results of questionnaire data processing that researchers carried out using the SPSS program, it was found that there was an influence between the Brand Ambassador Variables (X1), Product Quality (X2), Discount (X3), and Free Shipping (X4) on Azarine's Purchase Decision (Y) at Shopee by Narotama University management study program students class of 2019, the following conclusions were drawn:

1. The Brand Ambassador variable partially has a positive effect on Azarine's Purchase Decision at Shopee by Narotama University management study program students class of 2019

2. The Product Quality Variable partially has a positive effect on Azarine's Purchase Decision at Shopee by Narotama University management study program students class of 2019

3. The discount variable partially has a positive effect on Azarine's Purchase Decision at Shopee by Narotama University management study program student’s class of 2019.

4. The Free Shipping variable partially has a significant negative effect on Azarine's Purchase Decision on Shopee by Narotama University management study program student’s class of 2019.

5. Brand Ambassador Variables, Product Quality, Discounts and Free Shipping simultaneously have a positive effect on Azarine's Purchase Decision at Shopee by Narotama University management study program student’s class of 2019.

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