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The Influence of Product Quality, Service Quality, Price And Promotion on Purchase Decisions at Printing
Starlight Print Gresik
Mukhammad Eko Setiawan
Department of Management, Narotama University Jl. Arief Rachman Hakim 51, 60117, Surabaya, Indonesia
ekosetiiawann08@gmail.com
Abstract
Many factors influence purchasing decisions, such as product quality, service quality, price and promotion.The purpose of this study was to determine the effect of product quality, service quality, price, and promotion on purchasing decisions at starlight print printing. Sampling using purposive sampling method with a quantitative approach. The sample used was 100 respondents. Data collection using a questionnaire was processed using the Multiple Linear Regression Analysis technique. The results of this study indicate that the product quality variable partially has a significant effect on purchasing decisions. The service quality variable partially has a significant effect on purchasing decisions. The price variable partially has a significant effect on purchasing decisions. Promotional variables partially have a significant effect on purchasing decisions. Simultaneously variable product quality,
Keywords:
Price, Product Quality, Promotion, Purchase Decision, Service Quality
1. Introduction
Marketing management is an activity to plan, implement (which includes organizing, directing, coordinating) as well as supervise and control in marketing a product or service from an organization so that the goals of the organization can be achieved effectively and efficiently (Shinta, 2011). In the current era, the growth of sophisticated technological developments is increasing rapidly, making it easier for people to meet their daily needs, especially with increasingly sophisticated technology from computers and printing machines (printers) making one's need for printing easier, faster, and more efficient. the results are getting better (Suhartina, 2022). Reported fromBisnisz.idwhich is an information website about businesses in Indonesia, digital printing is a type of business that offers excellent opportunities and benefits if you decide to start a digital printing business (Saraswati, 2021).
Starlight Print is a type of business engaged in printing which is located on Jalan Raya Pasinan Lemah Putih, Wringin Anom Gresik. From the results of the researchers' observations, Starlight Print Printing sells printing products at prices that can compete in the market, the quality of service provided is also considered very good. However, sometimes the quality of the service provided also has problems regarding service time, not without reason the service is quite long due to the limitations of existing printing machines. With the limitations of printing machines, the quality of the products produced, especially with custom products, often experience problems in the production process and make production results less than optimal. The problem regarding promotions at Starlight Print printing is not too bad,
When a company can produce good quality products, with that the company will have the opportunity to reduce production costs, meaning that the company can carry out production effectively and efficiently, and if the results of the production are in accordance with the wishes and expectations of consumers, the total value of the goods produced experiencing production failure can be reduced as small as possible (Riadi, 2020) .One of the things that customers often consider before making a purchase is the quality of service. Companies must be able to review the things that consumers need and make maximum efforts to provide the best service. The higher the value of service quality, the higher the opportunity for consumers to decide to buy a product or service from a company and vice versa (Tjiptono, 2018).
There are other aspects that have a big impact on helping consumers in determining purchasing decisions besides product quality as well as service quality, namely price factors and promotion factors. Prices can trigger perceptions about the quality of the products and services being sold, because the higher the price set for a product or service, the higher the quality of the products or services obtained and vice versa (Buchari, 2013).
Promotion itself is something every company needs to consider, through company promotion it can reach a wider target market. Promotional activities can be done by creating social media content, giving discounts, giving purchase bonuses, and so on. These promotional efforts can have a positive impact on expanding market
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share and also increasing sales (Kotler, 2015). Based on this background, this study focuses on examining the effect of product quality, service quality, price and promotion on purchasing decisions at Gresik Starlight Print Printing.
1.1. Theoretical Basis 1.1.1. Product quality
Product quality according Kotler & Keller (2016) is the ability level of a product to implement its functions in order to obtain results that match or may be more than what is required by taking into account the reliability, durability, ease of operation, accuracy, and product repair as well as the attributes of other products.
From each production process is expected to produce products with a good level of quality. Products sold to consumers are products of good quality that have passed quality control in order to provide maximum satisfaction. Product quality is able to influence consumers to take steps in determining purchases (Riadi, 2020).
1.1.2. Service quality
Quality of service in the opinion of Tjiptono & Chandra (2016) is an effort made by the company to handle consumers well. Good service quality can be seen by comparing the perceptions of consumers in accordance with the real service they have received and felt with the service that consumers expect. because the realization of good service quality has a positive impact on attracting the attention of potential customers and can keep old customers from moving to other companies. This will cause old consumers to not survive with the company if the quality of the services provided is not improved or improved, but if the company is able to improve service quality on a regular basis then the opportunity for consumers to move to other companies will decrease (Tjiptono and Chandra, 2012).
1.1.3. Price
Price according to Kotler (2015) is the total value of all consumers given to sellers with the aim of obtaining benefits when using services or owning a product. Prices can trigger perceptions about the quality of the products or services being sold, to get a product or service with high quality, you have to prepare high costs and vice versa if the price is low, the quality of the product or service you get is also low (Kotler & Armstrong, 2017). When making a buying and selling transaction, the determining factor is the price of the product or service you want to get because price is a valid medium of exchange when making a buying and selling transaction. The only component of the marketing mix that is easily adapted to changing conditions at any given time is price. Price is also one of the determining aspects in competition when marketing products and services (Tjiptono, 2015).
1.1.4. Promotion
According to Moses (2015) Promotion is part of the marketing mix that is used to communicate with the public or consumers in providing information about the products or services offered. The main function of the promotion strategy is to strengthen the confidence of potential consumers that the company's goods and service offerings are more prominent than its competitors. Company differentiation is something that is unique to the products and services offered by providing a better advantage compared to products and services offered by competitors (Nofriansyah & Defits, 2017).
1.1.5. Buying decision
Purchasing decision according to Buchari (2013) is an action taken by consumers with encouragement from financial, economic, cultural, political, technological, price, product, promotion, physical evidence, location, and process factors so that consumers are able to form attitudes to manage all information received and can be concluded in the form response to make a purchase of a product or service. Many factors can influence consumers to make a decision before buying a product or service, consumers will usually make comparisons and consider products, quality and prices that are inherent in society (Nasution, 2015).
108 1.1.6. Framework of Thinking
Figures 1. Framework of thinking
1.1.7. Hypothesis
H1: Product Quality (X1) partially has a positive and significant effect on purchasing decisions (Y) H2: Service Quality (X2) partially has a positive and significant effect on purchasing decisions (Y) H3: Price (X3) partially has a positive and significant effect on purchasing decisions (Y)
H4: Promotion (X4) partially has a positive and significant effect on purchasing decisions (Y)
H5: Product Quality (X1), Service Quality (X2), Price (X3) and Promotion (X4) simultaneously have a positive and significant effect on purchasing decisions (Y)
2. Research Methods
This study uses a survey approach. This research was conducted on research respondents, namely consumers with an age range of 17-50 years who had purchased products or used services from Starlight Print Printing. Type of sampling non-probability sampling with sampling technique using purposive sampling technique (Syahrum & Salim, 2014). To determine the number of samples in this study using the Cochran formula because the population of this study is consumers with an age range of 17-50 years who have purchased products or used Starlight Print printing services in large numbers, unlimited and unknown.
Cochran's formula (Sujalu et al., 2021):
n0 : sample size
Z2 : Confidence level, in this study, namely 95%
p.s : the proportion of attributes in a population, in this study assumed with p = 0.5
q : 1-p
e : the desired level of confidence, in this study degree confidence that is 90% means a margin of error of 10% or 0.1
The Z value is obtained from a statistical table which contains the area under the normal curve.
Referring to the calculation results above, the sample taken was 96.04 = 97 people. And the researcher will round off the number of respondents to 100 people. So in this study the sample to be taken is a minimum of 100 people.
3. Results and Discussion 3.1. Research result
3.1.1. Description of Respondent Characteristics
Responses that have been collected from respondents who are consumers of starlight print printing.
Gender and age were used to classify the characteristics of the people participating in this study. Of the 100
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respondents who became the research sample, 70.0% or 70 respondents were male while the remaining 30.0%
or 30 respondents were female. of the 100 respondents studied, respondents aged <21 years were 19.0%, respondents aged 21-30 years were 45.0%, respondents aged 31-40 years were 27.0%, and respondents aged aged 41 - 50 years there is 9.0%.
3.1.2. Description of Research Variables
Based on the recapitulation of data that has been collected from 100 respondents obtained through the distribution of questionnaires or questionnaires, to find out the details of the respondents' answers to each variable based on the range of the following answer scores.
1. Product quality
Of the 5 questions given, those who answered strongly disagreed were 0.00%. Answers disagree there is 0.00% neutral answers there is 5.40%. Answers agree 64.80% and answers strongly agree there is 29.80%.
So, it can be concluded that more dominant respondents answered agree on the Product Quality variable (X1).
2. Service quality
Of the 5 questions given, those who answered strongly disagreed were 0.00%. Answers disagree there is 0.00% neutral answers there is 4.40%. Answers agree 70.80% and answers strongly agree there is 24.80%.
So, it can be concluded that respondents answered more dominantly agreed on the Service Quality variable (X2).
3. Price
Of the 5 questions given, those who answered strongly disagreed were 0.00%. Answers disagree there is 0.00% neutral answers there is 5.80%. Answers agree 66.60% and answers strongly agree there is 27.60%.
So it can be concluded that the more dominant respondents answered agree on the price variable (X3).
4. Promotion
Of the 5 questions given, those who answered strongly disagreed were 0.00%. Answers disagree there is 0.00% neutral answers there is 4.80%. Answers agree 67.80% and answers strongly agree there is 27.40%.
So it can be concluded that the more dominant respondents answered agree on the Promotion variable (X4).
5. Buying decision
Of the 5 questions given, those who answered strongly disagreed were 0.00%. Answers do not agree there is 0.020% neutral answers there are 7.20%. Answers agree 67.80% and answers strongly agree there is 24.80%. So it can be concluded that respondents answered more dominantly agreed on the Service Quality variable (Y).
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3.1.3. Validity Test and Reliability Test
Table 1. Validity Test Results
Variable Question R Count R Table Results
Product Quality (X1)
1 0.653 0.1966 Valid
2 0.707 0.1966 Valid
3 0.709 0.1966 Valid
4 0.651 0.1966 Valid
5 0.683 0.1966 Valid
Service Quality (X2)
1 0.684 0.1966 Valid
2 0.663 0.1966 Valid
3 0.712 0.1966 Valid
4 0.718 0.1966 Valid
5 0.613 0.1966 Valid
Price (X3)
1 0.766 0.1966 Valid
2 0.756 0.1966 Valid
3 0.698 0.1966 Valid
4 0.645 0.1966 Valid
5 0.670 0.1966 Valid
Promotion (X4)
1 0.651 0.1966 Valid
2 0.694 0.1966 Valid
3 0.714 0.1966 Valid
4 0.671 0.1966 Valid
5 0.698 0.1966 Valid
Purchase Decision
(Y)
1 0.686 0.1966 Valid
2 0.732 0.1966 Valid
3 0.673 0.1966 Valid
4 0.689 0.1966 Valid
5 0.627 0.1966 Valid
Source: Research data processing (2023)
In the table above, it can be seen that each question gets an R count > R table (0.1966), so the data obtained from this study is declared valid.
3.1.4. Reliability Test
Table 2. Reliability Test Results Variable
Cronbach's Alpha Coefficient
Cronbach Alpha
Minimum Test results
Product Quality (X1) 0.710 0.6 Reliable
Service Quality (X2) 0.718 0.6 Reliable
Price (X3) 0.751 0.6 Reliable
Promotion (X4) 0.704 0.6 Reliable
Purchase Decision (Y) 0.707 0.6 Reliable
Source: Research data processing (2023)
In the table above, the recapitulation of the data obtained from this study shows the results that the variables Product Quality (X1), Service Quality (X2), Price (X3), Promotion (X4) and Purchase Decision (Y) get cronbach's alpha coefficient values above 0 .6 so that the data used is proven to be reliable.
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3.2. Classic assumption test
3.2.1. Normality test
Table 3. Normality Test Results One-Sample Kolmogorov-Smirnov Test
Standardized Residuals
N 100
Normal Parameters, b Means 0E-7
Std, Deviations ,97958969 Most Extreme Differences
absolute .058
Positive .047
Negative -.058
Kolmogorov-Smirnov Z ,579
Asymp, Sig, (2-tailed) ,891
a. Test distribution is Normal, b. Calculated from data, Source: Research data processing
It can be seen in the table above that the significance value in the standardized residual column is 0.891 >
0.05 so that the residuals are said to be normally distributed. Because it can fulfill normality conditions, this shows that the regression model used in this study can be used.
3.2.2.
Multicollinearity Test
Table 4. Multicollinearity Test Results Coefficientsa
Model
Unstandardized Coefficients
Standardized
Coefficients t Sig, Collinearity Statistics
B Std, Error Betas tolerance VIF
1
(Constant) ,658 1,522 ,432 ,666
Product quality ,265 ,091 ,260 2,907 ,005 ,458 2,183
Service quality ,238 , 113 ,216 2,111 ,037 ,350 2,858
Price ,204 .095 ,207 2,140 .035 ,392 2,551
Promotion ,250 ,104 ,241 2,413 ,018 ,366 2,730
a. Dependent Variable: Purchase Decision Source: Research data processing (2023)
From the results of the data test shown in the table above, the tolerance value for the independent variable or independent variable is > 0.1 and the VIF value is < 10. From the values obtained, it can be concluded that the independent variables do not show multicollinearity.
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3.2.3. Heteroscedasticity Test
Figures 2. Scatterplot Graph Source: Research data processing
As shown in the image above, the dots are scattered and do not form a pattern. On the Y axis, points are above and below point 0, while on the X axis, points are to the right and left of point 0. It can be concluded from the graph that there are no symptoms of heteroscedasticity in the data of this study.
Table 5. Heteroscedasticity Test Results Correlations
Product quality
Service
quality Price Promotion
Unstandardi zed Residuals
Spearman's rho
Quality Product
Correlation
Coefficient 1,000 ,475** ,433** ,484** -.019
Sig, (2-tailed) , ,000 ,000 ,000 ,850
N 100 100 100 100 100
Service quality
Correlation
Coefficient ,475** 1,000 ,495** ,590** -.019
Sig, (2-tailed) ,000 , ,000 ,000 ,855
N 100 100 100 100 100
Price
Correlation
Coefficient ,433** ,495** 1,000 ,617** ,003
Sig, (2-tailed) ,000 ,000 , ,000 ,974
N 100 100 100 100 100
Promotion
Correlation
Coefficient ,484** ,590** ,617** 1,000 ,001
Sig, (2-tailed) ,000 ,000 ,000 , ,990
N 100 100 100 100 100
Unstandardize d Residuals
Correlation
Coefficient -.019 -.019 ,003 ,001 1,000 Sig, (2-tailed) ,850 ,855 ,974 ,990 ,
N 100 100 100 100 100
**, Correlation is significant at the 0.01 level (2-tailed), Source: Research data processing (2023)
This study shows that the variables Product Quality (X1), Service Quality (X2), and Price (X3), Promotion (X4) on Purchase Decision (Y) each have a significance value of > 0.05. That is, the data is declared not experiencing heteroscedasticity
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3.2.4. Multiple Linear Regression Analysis
Table 6. Multiple Linear Regression Analysis Test Results Coefficientsa
Model
Unstandardized Coefficients
Standardized
Coefficients t Sig, Collinearity Statistics
B Std, Error Betas tolerance VIF
1
(Constant) ,658 1,522 ,432 ,666
Product quality ,265 ,091 ,260 2,907 ,005 ,458 2,183
Service quality ,238 , 113 ,216 2,111 ,037 ,350 2,858
Price ,204 .095 ,207 2,140 .035 ,392 2,551
Promotion ,250 ,104 ,241 2,413 ,018 ,366 2,730
a. Dependent Variable: Purchase Decision Source: Research data processing (2023) The regression formula used is:
Y = α + β1 X1+ β2 X2 + β3 X3 + β4 X4 + e
Y = 0.658 + 0.265 X1 + 0.238 X2 + 0.204 X3 + 0.250 X4 + e
From the results of the equations obtained from the statistical calculations above, it can be concluded that the most dominant variable influencing purchasing decisions is product quality with a value of 0.265; Followed by a promotion variable with a value of 0.250; then there is the service quality variable with a value of o.238;
and finally is the price with a value of 0.204.
3.3. Hypothesis Testing 3.3.1. t test
Table 7. t Test Results (Partial) Coefficientsa
Model Unstandardized
Coefficients
Standardized Coefficients
t Sig, Collinearity Statistics
B Std, Error Betas tolerance VIF
1
(Constant) ,658 1,522 ,432 ,666
Product quality ,265 ,091 ,260 2,907 ,005 ,458 2,183
Service quality ,238 , 113 ,216 2,111 ,037 ,350 2,858
Price ,204 .095 ,207 2,140 .035 ,392 2,551
Promotion ,250 ,104 ,241 2,413 ,018 ,366 2,730
a. Dependent Variable: Purchase Decision Source: Research data processing (2023)
Based on the value of Sig. in the t test of this study, it can be interpreted as follows:
1. Product Quality Variable (X1) has a significance value of 0.005 <0.05. This means that H0 is rejected and H1 is accepted, so that Product Quality (X1) has a partially significant effect on Purchase Decision (Y).
2. Service Quality Variable (X2) has a significance value of 0.037 <0.05. This means that H0 is rejected and H2 is accepted, so that Service Quality (X2) has a partially significant effect on Purchase Decision (Y).
3. Price variable (X3) has a significance value of 0.035 <0.05. This means that H0 is rejected and H3 is accepted, so that price (X3) has a partially significant effect on purchasing decisions (Y).
4. Promotion variable (X4) has a significance value of 0.018 <0.05. This means that H0 is rejected and H4 is accepted, so that Promotion (X4) has a partially significant effect on Purchase Decision (Y).
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3.3.2. F test
Table 8. Results Test F (Simultaneous) ANOVAa
Model Sum of Squares Df MeanSquare F Sig,
1
Regression 223,403 4 55,851 44,723 ,000b
residual 118,637 95 1,249
Total 342,040 99
a. Dependent Variable: Purchase Decision
b. Predictors: (Constant), Promotion, Product Quality, Price, Service Quality Source: Research data processing (2023)
Because the significance value is 0.000 <0.05, H0 is rejected and H5 is accepted. This shows that Product Quality (X1), Service Quality (X2), Price (X3) and Promotion (X4) simultaneously or together influence Purchase Decision (Y).
3.3.3. Determination Coefficient Test (R2)
Table 9. Test Results for the Coefficient of Determination (R2) Summary model b
Model R R Square Adjusted R Square Std, Error of the Estimate
1 ,808a ,653 ,639 1.117
a. Predictors: (Constant), Promotion, Product Quality, Price, Service Quality b. Dependent Variable: Purchase Decision
Source: Research data processing
The coefficient of multiple determination (R2) is 0.653 or 65.3%. This shows that product quality (X1), service quality (X2), price (X3), and promotion (X4) have an effect of 65.3% on purchasing decisions (Y), while other variables outside this study have an effect of 34. 7%.
3.4. Analysis and Discussion of Research Results
3.4.1. Effect of Product Quality (X1) on Purchase Decision (Y)
H1 : Product Quality (X1) partially has a significant positive effect on Purchase Decisions at Gresik Starlight Print Printing.
The value of t count > t table for the effect of the product quality variable on purchasing decisions is 2.907 > 1.661, with a significance level of 0.005 <0.05 which indicates that partially the product quality variable has a positive effect on purchasing decisions. It can be concluded that consumers will be more inclined to buy a product if the quality is high and meets their expectations.
These results are also in accordance with previous research conducted by Griffin, (2019) with the title
"The Influence of Product Quality, Service Quality, Perceived Price on Pizza Hut Purchase Decisions" with the results of product quality variables having a significant positive effect on purchasing decisions.
3.4.2. Effect of Service Quality (X2) on Purchasing Decisions (Y)
H2 : Quality of Service (X2) partially has a significant positive effect on Purchase Decisions at Gresik Starlight Print Printing.
The t count > t table for the effect of the service quality variable on purchasing decisions is 2.111 >
1.661, with a significance level of 0.037 <0.05 which indicates that partially the service quality variable has a positive effect on purchasing decisions. It can be concluded that by providing good service quality, consumers will get a sense of satisfaction and comfort, this will also encourage other consumers to make purchases at the company.
These results are also in accordance with previous research conducted by Alfiatul Maulida, (2021) with the title "The Influence of Service Quality, Price and Promotion on Purchasing Decisions at Zafi Studio in Mangaran Situbondo" with the variable results of service quality having a significant positive effect on purchasing decisions.
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3.4.3. Effect of Price (X3) on Purchase Decision (Y)
H3 : Price (X3) partially has a significant positive effect on purchasing decisions at Gresik Starlight Print Printing.
The value of t count > t table for the effect of the price variable on purchasing decisions is 2.140 > 1.661, with a significance level of 0.035 <0.05 which indicates that partially the price variable has a positive effect on purchasing decisions. It can be concluded that providing competitive and affordable prices will encourage consumers to make purchases of the products offered by the company.
These results are also in accordance with previous research conducted by (Malonda, 2020) with the title
"The Influence of Price and Service Quality on the Decision to Purchase Geprek Bensu in Manado City During the Covid-19 Pandem Period" with the result that the price variable has a significant positive effect on purchasing decisions.
3.4.4. Effect of Promotion (X4) on Purchase Decision (Y)
H4 : Promotion (X4) partially has a significant positive effect on purchasing decisions at Gresik Starlight Print Printing.
The value of t count > t table for the effect of the promotion variable on purchasing decisions is 2.413 >
1.661, with a significance level of 0.018 <0.05 which indicates that partially the promotion variable has a positive effect on purchasing decisions. It can be concluded that by carrying out promotions with attractive visual aspects and also the right time will increase consumer purchasing decisions on the products offered by the company.
These results are also in accordance with previous research conducted by (Sukmawati, 2022) with the title "The Influence of Promotion, Price, and Product Quality on Purchasing Decisions of Something Skincare Products" with the results of the promotion variable having a significant positive effect on purchasing decisions.
3.4.5. Effect of Product Quality (X1), Service Quality (X2), Price (X3) and Promotion (X4) on Purchase Decision (Y)
H5 : Product Quality (X1), Service Quality (X2), Price (X3) and Promotion (X4) simultaneously have a significant positive effect on Purchasing Decisions at Gresik Starlight Print Printing.
The value of F count > F table is 44.723 > 2.468 with a significance value of 0.000 <0.05 based on the results of simultaneous testing (Test F) on the independent variables (free) product quality, service quality, price, and promotion on the dependent variable (tied) decision purchase. This shows that simultaneously the variables of product quality, service quality, price, and promotion have a significant positive effect on purchasing decisions. It can be concluded that a business can persuade customers to buy its products by offering high quality goods, excellent customer service, competitive and reasonable prices, and attractive promotions.
4. Conclusions and Recommendations 4.1. Conclusion
Based on the results of the research discussed in chapter 4 regarding "The Influence of Product Quality, Service Quality, Price, and Promotion on Purchase Decisions at Gresik Starlight Print Printing", several conclusions can be drawn as follows:
1. Based on the results of partial statistical tests, product quality variables have a significant positive effect on purchasing decisions at Starlight Print Gresik printing.
2. Based on the results of partial statistical tests, the service quality variable has a significant positive effect on purchasing decisions at the Gresik Starlight Print printing.
3. Based on the partial statistical test results, the price variable has a significant positive effect on purchasing decisions at Starlight Print Gresik printing.
4. Based on the partial statistical test results, the promotion variable has a significant positive effect on purchasing decisions at Starlight Print Gresik printing.
5. Based on the results of simultaneous statistical tests, the variables of product quality, service quality, price and promotion have a significant positive effect on purchasing decisions at Starlight Print Gresik printing.
4.2. Suggestion
Based on the results of the research, discussion and conclusions that have been described above, the authors can provide the following suggestions:
1. For Academics
It is hoped that this research can contribute to the development of science and can serve as a source of reference and documentation as material for consideration for other research related to product quality, service quality, price and promotion on purchasing decisions.
116 2. For Companies
With the research results which state that product quality, service quality, price and promotion have an influence on purchasing decisions both partially and simultaneously, this can be taken into consideration and input for future companies. Because of these four variables have a considerable influence on purchasing decisions as much as 65.3%.
3. It is hoped that by knowing the factors that have a major influence on purchasing decisions, especially the price variable that has the lowest influence value so that companies can provide far more competitive prices. And for the product quality variable with the highest influence value it can be maintained and can be increased again with more varied models and specifications. The company must be able to maintain and improve the things that are the determining factor to increase sales and provide opportunities for the company to be more advanced.
4. For Further Researchers
You can add other variables that are not in this study and certainly those related to purchasing decisions such as location, brand image, brand trust and so on in the hope that the results from further research will be better.
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