The Influence of Price, Promotion and Product Quality on the Decision to Purchase Fashion of Clothing at the
Artomoro Store, Kodam Night Market , Surabaya
Masithoh Nur Fauziah, R. Agus Baktiono, Muchammad Arif
Department of Management Faculty of Economics and Business Narotama University Surabaya
Arief Rahman Hakim no 51, Surabaya, Indonesia [email protected], [email protected],
[email protected]
Abstract
The more intense the competition among companies, they compete with each other for market share and retain their customers. In order for this to be achieved, every company must strive to produce and deliver goods and services that consumers want at reasonable prices, product quality and promotions that can increase sales. This research was conducted at Artomoro Store, Kodam Night Market Surabaya. The purpose of this study was to determine (1) the effect of price on purchasing decisions (2) the effect of promotion on purchasing decisions (3) the effect of product quality on purchasing decisions (4) the influence of price, promotion, overall product quality on purchasing decisions. Itwas quantitative study. The sample was 97 respondents. The instrument was a questionnaire.It used the SPSS version 26. Based on the results of this study, it showed that price, promotion, product quality on purchasing decisions had a significant effect partially and simultaneously.
Keywords:
Price, Promotion, Purchase of Decision, Quality of Product
1. Introduction
The development of the world's economy is currently running rapidly, which creates an increasingly fierce competition. This requires companies to be more sensitive, critical and reactive to existing changes, whether political, socio-cultural, and economic.The condition that must be met by a company in order to achieve success in competition is to try to achieve the goal of creating and retaining customers. In order to achieve this goal, every company must strive to produce and deliver goods and services that consumers want at reasonable prices, product quality and promotions that can increase sales and convince consumers to be able to make purchasing decisions on our products.
According to Kotler Philip (2011), purchasing decisions are actions from consumers to want to buy or not to the product. Of the various factors that influence consumers in purchasing a product or service, usually consumers always consider the quality, price and products that are already known by the public.
Several factors that can influence purchasing decisions for consumers are price, according to Kotler ; Philip (2005) that price is the amount of money charged or a product or service, or the amount of value that consumers exchange for the benefits received for using the product or service. . Price is often referred to as an indicator of value, if the price is related to the benefits received for an item or service (Neisia et al., 2018) .
Then the second factor that influences purchasing decisions, namely promotion. Promotion is any form of communication used to inform (to inform), persuade (to persuade) or remind people about the products produced by organizations, individuals or households (Simamora, 2003). According to Simamora (2003) there are several reasons marketers carry out promotions, namely: providing information, Stimulating demand, differentiating products, reminding current customers, reminding customers of the benefits of the company's products can prevent them from turning to competitors when they decide to buy. replace or upgrade its products, block competitors' promotions can be used to counter the marketing efforts of competitors to counter their advertising campaigns, respond to negative news sometimes competition is not the sale of similar products and other companies. Often companies become victims of publicity and fraud (Nurhayati, 2017).
Then the third factor is product quality. According to Sciffman & Kanuk (2009), product quality is the ability of a company to provide an identity or characteristic for each product so that consumers can recognize the product. According to Kotler ; Armstrong (2008), product quality is a potential strategic weapon to beat competitors. The ability of a quality product to perform a variety of functions including durability, reliability, accuracy, and ease of use. Product quality is related to efforts to develop products that are right for the market
and consumers. This is so that the product can be accepted and in accordance with consumer needs and can satisfy consumers. The product quality factor is no less important, because product quality is also a determining factor for the level of satisfaction obtained by buyers after purchasing and using a product (Philip, 2012).
Product quality can indirectly affect consumer satisfaction, and it is hoped that consumers can repurchase the products and services being sold (Arianto 2020).
At this time consumers tend to make purchases of clothes that are in accordance with the current fashion trend. Because for the majority of consumers who are women, especially teenage women, clothes with trendy fashion are a major need. This is able to encourage companies to increasingly compete with other companies in capturing market share. And also provides opportunities for companies to always provide the best fashion design innovations to meet consumer needs and desires. This study will take the object of one of the clothing stores in the Surabaya Kodam Night Market, namely, Artomoro Store is a store that sells various kinds of clothing in accordance with fashion trends among the people of Surabaya.
2. Method
2.1 Types of Research
This research uses a quantitative approach research type, is a research method based on the philosophy of positivism, is used to examine certain populations or samples, data collection using research instruments, data analysis is quantitative / statistical, with the aim of describing and testing predetermined hypotheses.
2.2 Time and Place of Research
This research was conducted at the Artomoro Store Stan located at the Night Market of the Brawijaya Military Command, Jl. RadenWijaya No. 2, Sawunggaling, Kec. Wonokromo, SBY City, East Java 60242, Indonesia. This research was conducted by giving questionnaires to all consumers who have purchased products from the Artomoro Store.
2.3 Population and Sampling
The population in this study are consumers who buy and use fashion products from the Artomoro Store, the number is not known for certain. In this study the sampling technique used Probability Sampling, precisely Simple Random Sampling, with 97 respondents.
2.4 Data and Data Collection Methods
The data used in this study are primary data and secondary data. The data collection method used in this research is a questionnaire.
2.5 Hypothesis Development The hypotheses in this study are:
H1 : Price has partial significant effect on Purchase Decision H2: Promotion partially significant effect on Purchase Decision
H3: Product quality has a significant partial effect on Purchase Decisions
H4: Price, Promotion and Product Quality have a significant simultaneous effect on Purchase Decisions
Figure 1 Conceptual Framework
1. The Effect of Price (X1) on Purchase Decision (Y)
Based on the results of partial regression analysis, the value of t arithmetic > t table is 5.724 > 1.986 or a significance value of t 0.000 < 0.05, then H0 which reads that there is no significant positive effect on Purchase Decisions, is rejected and Ha which reads that there is a significant positive effect on Purchase Decision, accepted. The value of the partial regression coefficient of the price variable is 0.557, which means that if the price is increased, the purchase decision will increase by 0.557. Thus, the conclusion is that the price variable (X1) has a positive influence on the purchasing decision variable (Y).
2. The Effect of Promotion (X2) on Purchase Decision (Y)
Based on the results of partial regression analysis, the value of t arithmetic > t table is 4,000 > 1,986 or sig t value of 0.000 < 0.05, then H0 which reads there is no significant positive effect on Purchase Decision, is rejected and Ha which reads there is a significant positive effect on Purchase Decision, accepted. The value of the partial regression coefficient of the Promotion variable is 0.236, which means that if the Promotion is increased, the Purchase Decision will increase by 0.236. Thus the conclusion is the Promotional Variable (X2) has a positive influence on the Purchase Decision variable (Y).
3. The Effect of Product Quality (X3) on Purchase Decisions (Y)
Based on the results of partial regression analysis, the value of t count > t table is 3.371 > 1.986 or the value of sig t (0.001) < 0.05, then H0 which reads there is no significant positive effect on Purchase Decisions, is rejected and Ha which reads there is a positive influence that significant to the Purchase Decision, accepted.
The value of the partial regression coefficient of the Product Quality variable is 0.227, which means that if the Product Quality is improved, the Purchase Decision will increase by 0.227. Thus, the conclusion is that the Product Quality Variable (X3) has a positive influence on the Purchase Decision variable (Y).
4. The Effect of Price (X1) Promotion (X2) Product Quality (X3) on Purchase Decision (Y)
Because F count > F table that is 54,836 > 2.70 or sig. F (0.000) < = 0.05 then the regression analysis model is significant. This means that H0 is rejected and H1 is accepted so that it can be concluded that Price, Promotion and Product Quality have a significant simultaneous effect on Purchase Decisions.
2.6 Data analysis technique 1. Validity Test
Validity testing can be done by correlating each factor or variable with the total factor or variable using correlation (r) . Test criteria to accept or reject the hypothesis of a valid statement or not, can be done by:
The null hypothesis (H0) is accepted if r count < r table, and The alternative hypothesis (H1) is accepted if r count > r table 2. Reliability Test
The reliability testing technique is to use the Spearman Rho reliability coefficient value. The decision- making criteria is if the Cronbach's Alpha value is more than 0.60.
3. Normality Test
This test is conducted to determine whether the residual values are normally distributed or not. The test procedure is carried out using the Kolmogorov-Smirnov test, with the following hypotheses:
H0: The residuals are normally distributed and H1: the residuals are not normally distributed.
If the value of sig. (p-value) > 0.05 then H0 is accepted, which means normality is met.
4. Multicollinearity Test
Multicollinearity test is conducted to find out that there is no very strong relationship or there is no perfect linear relationship or it can also be said that the independent variables are not interrelated. The test method is to compare the tolerance value obtained from multiple linear regression calculations, if the tolerance value is > 0.10 then there is no multicollinearity. Then, it can also be done by comparing the VIF (Variance Inflation Factor) value with the number 10. If the VIF value is < 10 then multicollinearity occurs.
5. Heteroscedasticity Test
This test uses Spearman Rho correlation using the SPSS program, with the following hypothesis:
Value of Sig. 2-tailed ( > 0.05 ) = Heteroscedasticity does not occur Value of Sig. 2-tailed ( < 0.05 ) = Heteroscedasticity occurs 6. Multiple Linear Regression
Multiple linear regression analysis from this study was used to determine whether or not the relationship between price (X1), promotion (X2), product quality (X3) variables such as independent variables on purchasing decisions (Y) was a kind of dependent variable.
Multiple linear regression equations are enabled from the results of data processing with the SPSS program such as the following:
Y = 10,779 + 0,557X1 + 0,236X2 + 0,227X3 + e Y = Purchase of Decision a = Constant Value b1, b2, b3 = Variabel Coefficient
X1 = Price
X2 = Promotion X3 = Quality of Product e = error term
2.7 Hypothesis test 1. T Test
To test the first hypothesis, the T test is used, which is to test the significance of the effect of the independent variable partially on the dependent variable. The F test aims to be able to determine the effect of the independent variables Price (X1), Promotion (X2), Product Quality (X3) on the dependent variable is Purchase Decision (Y). The criteria for accepting and rejecting the hypothesis used are as follows:
1) If t count > t table then the result is significant and means H0 is rejected and H1 is accepted.
2) If t count < t table then the result is not significant and means H0 is accepted and H1 is rejected.
2. F Test
Then test the second hypothesis, namely the F test is used to simultaneously test the significance of the effect of the independent variables (X) on the dependent variable (Y). The criteria for accepting and rejecting the hypothesis used are as follows:
1) If F count > F table then the result is significant with H0 rejected, Ha accepted 2) If F count < F table then the results are not significant with H0 accepted, Ha rejected 3. Coefficient of Determination Test (R2)
To determine the magnitude of the variable price, promotion and product quality in explaining purchasing decisions can be seen from the magnitude of the coefficient of determination (R2).
3. Result and Discussion
3.1 Validity TestTable 1. Validity Test
Item r Count r Table Description
X1.1 0768
0.1996
Valid
X1.2 0.748
0.1996
Valid
X1.3 0.526
0.1996
Valid
X1.4 0.766
0.1996
Valid
X2.1 0.874
0.1996
Valid
X2.2 0.729
0.1996
Valid
X2.3 0.715
0.1996
Valid
X2.4 0.805
0.1996
Valid
X2.5 0.824
0.1996
Valid
X3.1 0.670
0.1996
Valid
X3.2 0.638
0.1996
Valid
X3.3 0.543
0.1996
Valid
X3.4 0.412
0.1996
Valid
X3.5 0.564
0.1996
Valid
X3.6 0.634
0.1996
Valid
Y.1 0.720
0.1996
Valid
Y.2 0.733
0.1996
Valid
Y.3 0.779
0.1996
Valid
Y.4 0.640
0.1996
Valid
Y.5 0.388
0.1996
Valid
From the table above, it can be seen that the value of r count > r table , which means that each item variable is valid, so it can be concluded that these items can be used to measure research variables.
3.2 Reliability Test
Table 2. Reliability Test
No. Variabel Reliabilty of Coefficient Description
1. Price (X1) 0.668 Reliabel
2. Promotion (X2) 0.850 Reliabel
3. Quality of Product (X3) 0.608 Reliabel
4. Purchase of Decision (Y) 0.668 Reliabel
From the table above, it is known that the value of Croncbach's Alpha for all variables is greater than 0.60. From the provisions previously mentioned, all variables used for research are reliable.
3.3 Normality Test
Table 3. Normality Test One-Sample Kolmogorov-Smirnov Test
Unstandardized Residual
N 97
Normal Parametersa,b Mean .0000000 Std. Deviation 1.71532940 Most Extreme Differences Absolute .064
Positive .063 Negative -.064
Test Statistic .064
Asymp. Sig. (2-tailed) .200c,d
Based on the table above on the normality distribution test, the significance value is 0.2 or greater than 0.05. Namely that the assumption of normality is accepted.
3.4 Multicollinearity Test
Table 4.Multicollinierity Test
a. Dependent Variable: purchase of decision
In the test results above, it is found that the overall Tolerance value is > 0.1 or greater than 0.1. Based on the table above, the VIF value is > 10 or smaller than 10. So it can be concluded that there is no multicollinearity between independent variables. Thus the assumption test of the absence of multicollinearity can be fulfilled.
3.5 Heteroscedasticity Test
Table 5.Heterocedasticity Test Correlations
HARGA PROMOSI
KUALITAS PRODUK
Unstandardized Residual Spearman's
rho
Price Correlation Coefficient
1.000 .682** .280** .049
Sig. (2-tailed) . .000 .005 .634
N 97 97 97 97
Promotion Correlation Coefficient
.682** 1.000 .341** .021
Sig. (2-tailed) .000 . .001 .839
N 97 97 97 97
Quality of Product
Correlation Coefficient
.280** .341** 1.000 .034
Sig. (2-tailed) .005 .001 . .739
N 97 97 97 97
Unstandardized Residual
Correlation Coefficient
.049 .021 .034 1.000
Sig. (2-tailed) .634 .839 .739 .
N 97 97 97 97
**. Correlation is significant at the 0.01 level (2-tailed).
Coefficientsa
Model
Unstandardized Coefficients
Standardized Coefficients
T Sig.
Collinearity Statistics
B Std. Error Beta Tolerance VIF
1 (Constant) 10.779 1.240 8.694 .000
PRICE .557 .097 .543 5.724 .000 .431 2.319
PROMOTION .236 .059 .385 4.000 .000 .418 2.390
QUALITY OF PRODUCT
.227 .067 .233 3.371 .001 .813 1.230
Based on the table above, the three figures Sig.2 Tailed Variable Price (X1), promotion (X2), product quality (X3) are 0.634 , 0.839 , 0.739 then the heterokesatisity problem can be said not to occur because the Spearman Rho rank value is greater than 0.05 . And when viewed from the results of the correlation coefficient of all variables that are positive, the relationship between variables is said to be unidirectional. Thus the regression analysis can be continued because there is no heteroscedasticity problem or has met the assumptions of the regression test.
3.6 Multiple Linear Regression
The results of the calculation of multiple linear regression analysis with the SPSS 26 program are presented in the following table:
Table 6.Multiple Linear Regression Test Coefficientsa
Model
Unstandardized Coefficients
Standardized Coefficients
t Sig.
B
Std.
Error Beta
1 (Constant) 10.779 1.240 8.694 .000
Price .557 .097 .543 5.724 .000
Promotion .236 .059 .385 4.000 .000
Quality of Product .227 .067 .233 3.371 .001 a. Dependent Variable: purchase of decision
Based on the results of the analysis of the table above, the following multiple linear regression equation is obtained:
Y = 10,779 + 0,557X1 + 0,236X2 + 0,227X3 + e It can be stated that:
1. The constant value is 10.779, this shows that if the price (X1), promotion (X2), product quality (X3) are equal to zero, then the purchase decision is 10.779.
2. Price Value (X1) 0.557. This shows that if the price (X1) increases by one unit, it will increase the purchasing decision (Y) by 0.557 with the assumption that the promotion variable (X2) and product quality (X3) are constant.
3. The value of the promotion coefficient (X2) is 0.236. This shows that if brand trust increases by one unit, it will increase purchasing decisions (Y) by 0.236 units with the assumption that the price variable (X1) and product quality (X3) are constant.
4. The value of the product quality coefficient (X3) is 0.227. This shows that if the quality of the product increases by one unit, it will increase the purchasing decision (Y) by 0.227 units with the assumption that the price variable (X1) and promotion (X2) are constant.
3.7 T Test
Table 7. T Test
Bound Variable Free Variable t count t Table Information Decision of The
(Y)
X1 5.724 1.986 Significant
X2 4.000 1.986 Significant
X3 3.371 1.986 Significant
The results of the T test (partial) can be concluded that:
1. Price (X1) :
The t test between X1 (Price) and Y (Purchase Decision) shows t count = 5.724. Because t count > t table is 5.724 > 1.986 or sig t value (0.000) < = 0.05 then the effect of X1 (Price) on Purchase Decision is significant.
2. Promotion (X2) :
The t test between X2 (Promotion) and Y (Purchase Decision) shows t count = 4,000. Because t count > t table is 4,000 > 1,986 or sig t value (0.000) < = 0.05 then the effect of X2 (Promotion) on Purchase Decision is significant.
3. Product Quality (X3) :
The t test between X3 (Product Quality) and Y (Purchase Decision) shows t count = 3.371. Because t count
> t table is 3.371 > 1.986 or sig t value (0.001) < = 0.05, the effect of X3 (Product Quality) on Purchase Decision is significant.
3.8 F Test
Table 8. F Test ANOVAa
Type Sum of Squares Df Mean Square F Sig.
1 Regression 499.658 3 166.553 54.836 .000b
Residual 282.466 93 3.037
Total 782.124 96
a. Dependent Variable: purchase of decision
b. Predictors: (Constant), Quality of Product , Price , Promotion
In the F (simultaneous) test above, it can be said that the results of the F test simultaneously with F count
> F table are 54,836 > 2.70 or sig value. F (0.000) < = 0.05 then the regression analysis model is significant.
This means that H0 is rejected and H1 is accepted so that it can be concluded that Price, Promotion and Product Quality have a significant simultaneous effect on Purchase Decisions.
3.9 Coefficient of Determination Test (R2)
Table 9. Coefficient of Determination (R2) Test Model Summary
Type R R Square
Adjusted R Square
Std. Error of the Estimate
1 .799a .639 .627 1.74278
a. Predictors: (Constant), Quality of Product, Price , Promotion
In the R square determination test, the adjusted R value of 0.627 and the R square coefficient of 0.639 can be obtained. This means that 0.627 or 62.7% variation of the independent variable price (X1), promotion (X2), product quality (X3) affects purchasing decisions (Y) by 0.639 or 63.9% and is influenced by other variables that are not included and explained in this study amounted to 36.1%.
3.10 Discussion
The results of hypothesis testing indicate that the variables of price, promotion, product quality together have a significant simultaneous effect on purchasing decisions. Partially shows that the price variable has a significant effect on purchasing decisions. Partially, promotion has a significant effect on purchasing decisions.
Partially product quality also has a significant effect on purchasing decisions. Of the three variables of price (X1), promotion (X2), product quality (X3) on Purchase Decision (Y), the results show that the price variable has a more dominant significant effect. Because the price variable has four statement indicators on the questionnaire submitted to the respondents.
4. Conclussion
Based on the results of research and analysis of data obtained on "The Influence of Price, Promotion, and Product Quality on Purchase Decisions for Fashion Clothing at Artomoro Store, Surabaya Kodam Night Market" it can be drawn from the following conclusions :
1. Price has a significant effect partially on the Decision to Purchase Fashion Clothing at the Artomoro Store, Surabaya Kodam Night Market. This is evidenced by t arithmetic > t table, namely 5.724 > 1.986 or the value of sig t (0.000) < = 0.05.
2. Promotion has a significant partial effect on purchasing decisions for fashion clothing at the Artomoro Store, Night Market, Kodam Surabaya. This is evidenced by t count > t table, namely 4,000 > 1,986 or the value of sig t (0.000) < = 0.05.
3. Product quality has a significant partial effect on purchasing decisions for fashion clothing at the Artomoro Store, Surabaya Kodam Night Market. t count > t table that is 3.371 > 1.986 or sig t value (0.001) < = 0.05.
4. Price, Promotion, Product Quality have a significant simultaneous effect on the Decision to Purchase Fashion Clothing at the Artomoro Store, Night Market, Kodam Surabaya. This is evidenced by the calculated F > F table, which is 54,836 > 2.70 or the sig value. F (0.000) < = 0.05.
5. Price is the most powerful variable on purchasing decisions.
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Biographies
Masithoh Nur Fauziah, born in Surabaya , East Java . is currently pursuing a bachelor's degree in management economics at Narotama University, Surabaya.
R. AgusBaktiono,born in Pasuruan, studied Bachelor of Economics Program at Narotama University graduated in 1986, further studies 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. He has held structural positions 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 UnikaWidya Mandala, Surabaya, Indonesia.
