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The Influence of Price, Product Quality, Brand Image on the Purchase Decision of Indomie Products in Surabaya
Mahrul Fajerin, R. Agus Baktiono, Muchamad Arif
Department Of Management Faculty of Economics and Business Narotama University Jl. Arief Rahman Hakim 51 Surabaya, Indonesia
[email protected], [email protected], [email protected]
Abstrak
In this instant era, humans want everything practical, including in terms of eating. This research was conducted in the city of Surabaya with the aim of knowing (1) the effect of Indomie's price on purchasing decisions, (2) the effect of Indomie's product quality on purchasing decisions (3) the effect of Indomie's brand image on purchasing decisions, (4) the effect of price, product quality and Indomie's Brand Image simultaneously on Purchase Decisions. It was quantitative study. The sample was 97 respondents. The instrument was a questionnaire. It used SPSS to check the validity and reliability. Then, classical assumption test included multicollinearity test and heteroscedasticity test. While testing the hypothesis in this study using multiple regression analysis and the coefficient of determination and hypotheses. The results showed that leadership style, motivation partially and simultaneously significant had effect on employee performance.
Keywords:
Brand Image, Price, Product Quality, Purchase Decision
1. Introduction
In making a purchasing decision, the first thing that consumers consider when choosing a product is to look at the price of the product (Ananda et al., 2017). Products that have competitiveness and affordable prices will be better able to attract consumers to buy an item in accordance with the quality and benefits offered. Brand image is one of the important factors in influencing consumer purchasing decisions.
Indomie has always occupied the first position of Top Brand in the last 5 years in 2017 by 80.0% and has not been displaced by other instant noodles. Researchers researched Indomie Goreng in Surabaya because in every stall the researchers saw that there was always a stock of fried Indomie, even starting to have some stalls branded with the Indomie logo by the Indomie party itself and called warmindo (fried Indomie food stall). Therefore, researchers are interested in researching fried indomie in Surabaya because researchers see that most consumers are interested in fried indomie instant noodles.
Table 1. Top Brand index
Brand TBI 2020
Indomie 72.9 % TOP
Mie Sedap 15.2 % TOP
Sarimi 3.1 %
Supermi 2.7 %
Gaga 100/
Mie 100
2.1 %
Based on the data above, it shows that in 2020 TBI Indomie reached 72.9%, Mie Sedaap 15%, Sarimi 3.1%, Supermi 2.7%, Gaga 100/Mie 100 2.1%.
Based on the description of the background above, it can be formulated several problems, namely whether price, product quality, brand image can affect purchasing decisions, either partially or simultaneously.
This study aims to determine the effect of the variable Price, Product Quality, Brand Image on the Purchasing Decision variable partially or simultaneously.
96 1.1. Theoretical framework
1. Price
According to Oentoro in the book (Sudaryono, 2016) Price is an exchange rate that can be equated with money or services for a person or group at a certain time and a certain place. According to (hery, 2018) Price is a key factor in the customer's decision to buy the goods or services offered by the company.
1) Price indicators consist of price affordability 2) Price competition
3) Price compatibility with quality 4) Price compatibility with benefits.
2. Product quality
According to (Montung et al., 2015) Product quality is the activity of procuring goods that are in accordance with the business undertaken by the company with good quality. According to (Alma, 2011:54) Quality is the advantage of the product. According to (Assauri, 2013) Product quality is the product's ability to meet customer satisfaction related to the size of the product's durability, product reliability, product accuracy, and ease of operation and maintenance of the product.
1) Performance 2) Features 3) Reliability 4) Specifications 5) Durability 3. Brand Image
According to (firmansyah, 2019) Brand image is a perception about a brand that is described by brand associations that exist in consumers' memories. According to (Tjiptono, 2011:112) in the book brand image or Brand Image, namely a description of the associations and consumer beliefs about a particular brand. According to (Shciffman & Wisenblit, 2018) “brand image is the desired outcome of effective positioning is a distict
“position” (or image) that the brand accupies in cusnomer mind”.
1) Brand identity 2) Brand personality 3) Brand association
4) Brand attitude and behavior 5) Brand benefit and competence 4. Buying decision
According to (Kotler & amstrong, 2012) The purchase decision is the stage in the buyer's decision-making process where the consumer actually buys.
1) Stability on a product 2) Habits in buying products 3) Give recommendations to others 4) Make a repeat purchase
1.2. Conceptual framework
Figure 1. Conceptual Framework 1. Hypothesis
H1 = Price partially has a significant effect on purchasing decisions
H2 = Product quality partially has a significant effect on purchasing decisions H3 = Brand image partially has a significant effect on purchasing decisions H4 = no effect X1, X2, X3 on purchasing decisions
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2. Research methods
1.2. Research Location and Time Plan
This research was conducted on research respondents, namely consumers of Indomie products who had bought and consumed Indomie in the city of Surabaya. This research is carried out for a maximum of 6 months, namely March - August 2021
1. Population
According to (sugiyono 2018) population is a generalization area consisting of objects/subjects that have certain quantities and characteristics determined by the researcher to be studied and then draw conclusions. The population in this study are consumers who have consumed Indomie products in the city of Surabaya.
2. Sample
Sampling technique for conducting research According to (Sugiono, 2017) states that: "Sampling technique is a data collection technique to determine the sample to be used in research, there are several sampling techniques that will be used in research, there are several sampling techniques used". Therefore, in this study, the researcher used a non-probability sampling type of sampling by using a purposive sampling technique, namely selecting sample members from the population determined by the researcher alone.
2.2. Data analysis technique
According to (Sugiyono, 2014) The type of research applied in this research is quantitative research, where the research data is in the form of numbers and analyzed using statistics. The method used in this study is a survey method. Survey is a research method used to obtain data from a certain place and uses a questionnaire as a data mining tool. The purpose of this method is to obtain information about the matter to be studied to a number of respondents who are considered to represent a population.
3. Result and Discussion
1. Validity test
According to Validity is the degree of accuracy between the data that occurs in the object of research and the power that can be reported by the researcher. Thus, valid data is "that does not differ" between data reported by researchers and data that actually occurs in the object of research
Table 2 Vilidity Test Results Variabel Rata-rata r
hitung
R tabel
Price (X1) 0,769 0,1996
Product quality (X2) 0,719 0,1996 Brand Image (X3) 0,718 0,1996 Buying decision (Y) 0,803 0,1996
Source: Data Output SPSS,2021
From the test results above, it shows that the tested variables have valid information with a Sig limit of 5%
which means that the items used in the study are valid.
2. Reliability Test
According to Sugiyono (2019), reliability is related to the degree of consistency and stability of data or findings. In the positivistic (quantitative) view, a data is declared reliable if two or more researchers at different times produce the same data, or a group of data when split into two shows data that are not different.
Table 3 Reability test
variable Cronbach’s Alpha Status
Price 0.770 Reliable
Product quality 0.696 Reliable
Brand Image 0.764 Reliable
Buying decision 0.818 Reliable
Source: SPSS processed data,2021
From the data above, it shows that the value of Cronbach's Alpha eWOM, Price, Quality of Service and Purchase Decision each has a value above 0.60, meaning that all the variables tested are reliable.
3.1. Classic assumption test
1. Data Normality Distribution Test and P-Plot Normality Test
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Table 4 Data Normality Test Results One-Sample Kolmogorov-Smirnov Test
Unstandardiz ed Residual
N 97
Asymp. Sig. (2-tailed) ,075
From the table above shows that the value of Asymp. Sig. (2-tailed) is 0.200 > 0.05. Thus it can be concluded that the data used is normally distributed so that it meets the requirements of simple linear regression testing.
Figure 2. P-Plot Normality Test Results
the results of the PP Plot graph normality test, the data or plot points are around the diagonal line and follow the direction of the diagonal line and do not move away from the diagonal line so it can be concluded that the data used in this study is normally distributed.
Figure 3 Histogram Normality Test Source: SPSS processed data, 2021
Based on Figure 4.3 shows that the histogram normality test results provide a distribution pattern that forms a mountain-like pattern, which means that the data used by researchers in this study is normally distributed.
3.2. Multicollinearity Test
The multicollinearity test is used as an attempt to determine whether or not there is a perfect correlation or close to a perfect relationship. To detect the presence or absence of multicolonearity in the regression model, it can be done by looking at the Tolerance value and the Variance Inflation Factor (VIF) value. If the Tolerance value > 0.10 and the VIF value < 10 then there is no multicollinearity problem. The results of the multicollinearity test are obtained as follows :
Table 5 Multicollinearity Test Coefficientsa
Type Collinearity Statistic
Tolerance VIF
1 Price 0.557 1.794
Product Quality
0.715 1.399
Brand Image 0.482 2.076
Source: SPSS processed data, 2021 a. Dependent Variable: Buying decision
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Based on the table above, it is known that the Price variable (X1) has a VIF value of 1.794 and a Tolerance value of 0.557, the Product Quality variable (X2) has a VIF value of 1.399 and a Tolerance value of 0.715, the Brand Image variable (X3) has a VIF value of 2.076 and Tolerance value is 0.482. All three independent variables have a VIF value below 10 and a tolerance value above 0.10. So it can be concluded that there is no correlation between the independent variables or all the independent variables used in this study do not occur multicollinearity so that it meets the requirements to test multiple linear regression.
3.3. Heteroscedasticity Test and Glaser Test
Heteroscedasticity test aims to determine whether or not there is a deviation or inequality of variance from the residuals for all observations in the regression model. In this study, researchers used the Spearman test to detect the presence or absence of heteroscedasticity problems. The following are the results of the heteroscedasticity test using Spearman's test in this study:
Figure 4 Scatterplot He Heteroscedasticity Test Results Table 6 Glaser . Heteroscedasticity Test Results
Model Sig.
1 (Constant) .153
X1 .469
X2 .948
X3 .601
Source: SPSS processed data SPSS,2021
Based on table 4.12 above, the graph above is said to be heteroscedastic if the image is spread out and does not overlap from the number line 0 on X and Y, then there is no heteroscedasticity. The Glejser test above says that to strengthen the Heteroscedasticity Test where the results of the variables. Leadership Style (X1), Work Motivation (X2), and Employee Performance (Y) the constants of these variables are more than 0.05.
3.4. Partial Hypothesis Test (Uji T)
T test aims to determine whether partially or individually the price, product quality, brand image variables have an influence on purchasing decisions. The results of the partial t test are as follows:
Table 7 T. Test Results Coefficientsa Unstandardized
Coefficients
Standardized Coefficients
Type B Std. Error Beta t Sig.
1 (Constant) .722 1.686 .428 .669
Price .069 .114 .058 .608 .554
Product Quality
.212 .091 .197 2.341 .021
Brand Image
.518 .095 .561 5.462 <0.001
Source: SPSS processed data, 2021
Based on table 7 it can be explained that the results of the t test are as follows::
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a. Price does not have a significant effect partially on purchasing decisions. It is known that the price variable has a t-count of 0.608 with a value of sig = 0.554 indicating it is greater than the value of = 0.050 (0.554 > 0.050) which means that the price variable partially has no significant effect on purchasing decisions..
b. Product quality partially significant effect on purchasing decisions. It is known that the Product Quality variable has a t-count of 2.341 with a value of sig = 0.021 which indicates it is lower than the value of = 0.050 (0.021 < 0.050) which means that the Product Quality variable partially has a significant effect on purchasing decisions.
c. Brand Image has a significant partial effect on purchasing decisions. It is known that the Brand Image variable has a t-count of 5.462 with a value of sig = <0.1 indicating lower than the value of = 0.050 (<0.1
<0.050) which means that the Brand Image variable partially has a significant effect on purchasing decisions.
1. Simultaneous Hypothesis Testing
The F test aims to determine whether simultaneously all independent variables, namely Electronic Word of Mouth, Price, and Service Quality have a significant influence on the dependent variable, namely Purchase Decision. The results of the partial F test are as follows:
Table 8 F. Test Results ANOVAa
Type Sum of
Squares
Df Mean
Square
F Sig.
1 Regressio n
233.454 3 77.818 34.535 <.00
1b
Residual 209.556 93 2.253
Total 443.010 96
Source: SPSS processed data, 2021
Based on the ANOVA table above, it is known that the variable Price (X1), Product quality (X2), Brand Image (X3) has an F value of 34.535 with a value of sig = 0.001 which shows it is smaller than the value of = 0.050 (0.001 < 0.050) which means that the variable Price (X1), Product Quality (X2), Brand Image (X3) simultaneously have a significant effect on purchasing decisions.
2. Multiple Linear Regression Analysis
Multiple linear regression analysis used in this study aims to examine the effect of the variable price, product quality, brand image on purchasing decisions. The results of multiple regression analysis are presented in the following table:
Table 9 Multiple Linear Regression Test Results Coefficientsa
Unstandardized Coefficients
Standardized Coefficients
Type B Std. Error Beta t Sig.
1 (Constant) .722 1.686 .428 .669
Price .069 .114 .058 .608 .554
Product Quality
.212 .091 .197 2.341 .021
Brand Image
.518 .095 .561 5.462 <0.001
Source: SPSS processed data, 2021
Based on Table 5.16 above, the multiple linear regression equation model is as follows:
Y = 6,006 + 0,339 X1 + 0,342 X2 + 0,045 X3 + e
Based on the multiple linear regression equation above, it can be described as follows:
a. The coefficient constant is 0.722, meaning that the value of Purchase Decision (y) is worth 0.722 or a situation when the Purchasing Decision variable has not been influenced by each of the variables Price (X1), Product Quality (X2), and Brand Image (X3).
b. The value of b1 (regression coefficient X1) is 0.069. If the Price variable (X1) increases by one unit, then the Purchase Decision variable (Y) will change and will get a contribution from the X1 variable of 0.069.
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Price variable (X1) has a regression coefficient of 0.069 and a positive value which indicates that the price has a positive influence on purchasing decisions.
c. The value of b2 (regression coefficient X2) is 0.212. If the Product Quality variable (X2) increases by one unit, then the Purchase Decision variable (Y) will change and will get a contribution from the X2 variable of 0.212. Product Quality (X2) has a regression coefficient of 0.212 and a positive value which indicates that the price has a positive influence on purchasing decisions.
d. The value of b3 (regression coefficient X3) is 0.518. If the Brand Image variable (X3) increases by one unit, then the Purchase Decision variable (Y) will change and will get a contribution from the X3 variable of 0.518. Varibale Brand Image (X3) has a regression coefficient of 0.518 and a positive value which indicates that Service Quality has a positive influence on purchasing decisions.
3.5. Determination Test
The coefficient of determination test (R^2) is used to measure how far the model's ability to explain the variation of the dependent variable is. The value of the coefficient of determination is between zero and one (0 <
R^2 < 1). The small value of R2 means that the ability of the independent variables in explaining the dependent variable is very limited. The value of R2 which is close to one (1) means that the independent variables provide almost all the information needed to predict the variation of the variable. The following are the results of the determination test:
Table 10 Determination Test Model Summaryb
Type R R Square
Adjusted R Square
Std. Error of the Estimate
1 .726a .527 .512 1.501
Based on the results of table 4.18 shows the results of the coefficient of determination test. It can be seen in the table that the value of the Adjusted R¬-Square is 0.512. It can be concluded that the magnitude of the influence of the variable Price, Product Quality, Brand Image on Purchase Decisions is 0.512 (51.2%) while the remaining 48.8% is influenced by variables other than Price, Product Quality, Brand Image on Decisions..
4. Conclusion
Based on the results of research and data analysis obtained on "The Effect of Style Based on the results of research with the help of SPSS tools, the conclusions that can be drawn from this research are as follows:
1. Price variable (X1) partially has a positive effect of 0.608 and is not significant 0.554 on Indomie's Purchase Decision.
2. Product Quality Variable (X2) partially positive effect 2,341 and significant 0,021 on Indomie Purchase Decision.
3. Brand Image Variable (X3) partially has a positive effect of 5.462 and significantly 0.001 on Indomie's Purchase Decision. Variables of Price, Product Quality, and Brand Image simultaneously have an effect of 0.001 on Indomie's Purchase Decisions.
4.1. Suggestion
Based on the results of the research that has been done, the researchers have some suggestions as follows:
1. Share Research
In this study, the researcher only examined the effect of Price, Product Quality, and Brand Image on the INDOMIE purchasing decision variable, while other variables that influenced the Purchasing Decision variable had not been done much. Hopefully for further research can discuss other factors that have not been studied in this study
2. Company
Service Quality variable has the least influence on purchasing decisions. Therefore, INDOMIE needs to review the determination of Product Quality, so that the quality of the Products implemented by INDOMIE will be better in the future and comparable to what is obtained by customers. The impact of the review on the quality of the product will increase the purchasing decisions of INDOMIE by consumers so that in the end it will bring benefits to the company.
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Biography
Mahrul Fajerin, born in Surabaya, Indonesia, currently studying economics management at Narotama University, Surabaya.
R. Agus Baktiono, born in Pasuruan, studied Bachelor of Economics at Narotama University graduating in 1986, further study in Master of Management Program graduated in 2002 at Narotama University Surabaya. His career in the field of education began in 1985 as a lecturer assistant, and at this time has achieved the academic position of Head Lector, certified lecturer and assessor of LKD serdos, as well as internal auditor for Higher Education Quality Assurance. In addition, since 1989 he has been active in various professional organizations, including ISEI, REI, as a management expert at various Consultants. Structural positions he has held in the field of education, among others, as Head of the Department.
Muchamad Arif, is a lecturer at Narotama University, Surabaya, Indonesia. He is also as Head of Narotama Language Center at Narotama University, Surabaya, Indonesia. He got master degree in English Education from Unika Widya Mandala, Surabaya, Indonesia.
