THE INFLUENCE OF WORD OF MOUTH AND BRAND TRUST ON PRODUCT PURCHASING DECISIONS
Muhammad Eri Tio1, M.Taufik2, Kasno3
Department of Management, STIE Widya Gama Lumajang, Indonesia Email: muhammaderitio1711@gmail.com1
Abstract
This research was conducted to determine the effect of Word of Mouth and Brand Trust on Purchasing Decisions of Eiger product users in Lumajang Regency. This research is a quantitative research. The data obtained is primary data which is the result of respondents' answers to distributed questionnaires. Sampling was carried out through saturated samples (census), namely those who were used as respondents were users of Eiger products in Lumajang Regency. Samples taken were 90 users of Eiger products in Lumajang Regency. Data collection was carried out through observation, interviews and questionnaires. The data were analyzed using multiple linear regression analysis through the SPSS program. The results showed that the Word of Mouth Partially significant influence on purchasing decisions, while Brand Trust also has a partially significant influence on purchasing decisions. It can be seen that the significant value is below 0.05 and the t value (239.944)> t table (3.10). The results of this study also show that partially the Word of Mouth variable affects the purchasing decision process, the brand trust variable affects the purchasing decision process. In the determination test, there is an effect of 84.3% of the independent variables ( Word of Mouth and brand trust ) on the dependent variable (purchase decision). Meanwhile, 15.7% was influenced by other variables and was not included in this regression analysis, such as price, promotion, brand image, celebrity endorser and others.
Keywords: Word of Mouth, Brand Trust, and Purchase Decision
INTRODUCTION
Indonesia is a country with a large number of mountains. Each island has its own beautiful natural panorama from the seabed to the top of the mountain, this of course attracts local and foreign tourists to visit and explore tourist destinations in Indonesia. None other than in Lumajang, East Java, which has many tourist attractions that can be visited. The large number of domestic and foreign tourists who come to Lumajang Regency brings changes to a new phenomenon for some people in Lumajang Regency. Lately, teenagers have a new hobby of doing activities in the wild for refreshing after many activities. There are various ways that can be used as business opportunities, one of which is business in the outdoor field, the level of competition in the business world in Indonesia is quite tight because every company has a way to seize market share and get new customers . Eiger itself has a variety of products that are marketed, namely carrier bags , waist bags, clothes, mountain shoes, mountain sandals, tents, hats and many other accessories.
Eiger products themselves are known to be very strong in terms of stitches so that they have a higher selling value than other products. Eiger provides a guarantee for stitches and zippers if something goes wrong. With excellent quality, the Eiger company must convince consumers to believe in Eiger products and create phenomena so that their products are discussed by many people. One of the interesting marketing strategies to talk about is Word of Mouth or can be called word of mouth promotion . Hasan (2010) states that Word of Mouth marketing is the oldest form of advertising, namely people who provide information and honestly recommend products to others about brands, goods or services, and services. Trust in a brand is the willingness or willingness of consumers to face the risks associated with the brand being purchased which will give positive or beneficial results. Research History has ever done and concluded that the Word of Mouth significant influence on purchasing decisions ( Widiyanti, E , 2015 ; Sari, F. P ., 2016;
Pamungkas, B and Siti Zuhroh , 2016; Oktavianto, Y., 2013; Khusyairi , et al 2018; ; Joesyiana, 2018 ; Alpita, 2015 ). Then previous research has shown that Brand Trust has a significant effect
on purchasing decisions (Wulandari et al., 2015; Listyorini et al., 2015 ; Widiyanti, E.
2015 ; Adriana ., 2017 ; Yulianti, Hatane, 2014 ; Antoni, A., & Herianto, M., 2017).
METHOD
This type of research uses quantitative research methods . Data processing was carried out using the Excel mic rosoft program and the SPSS 21 program ( Statistical Product and Service Solution ). Then the results of the converted data are then processed using multiple linear regression analysis. The population in this study were the users of Eiger products in Lumajang Regency with a population of 300 people during March-April. The sampling technique is a technique to determine the sample to be used in research. Based on the opinions mentioned above, the sample taken from this study refers to the number of respondents from Eiger product users in Lumajang Regency (Sugiyono, 2014: 82). The sampling technique used in this study was taken by probability sampling and the chosen technique was simple random sampling . In this study, the sample used was Eiger product users in Lumajang Regency . Data collection methods used in this study are questionnaires, observation, interviews and documentation.
RESULTS AND DISCUSSION
Table 1. Description of Respondents
Information Number of Respondents Percentage Age
17-23 years 24-30 years total
58 32 90
64%
36%
100%
Category New user Old user total
33 57 90
37%
63%
100%
Status Single Married total
73 17 90
81%
19%
100%
Source : Data Processing Results 2020
Based on the table above, it shows respondents based on gender categories, it can be seen that the number of male and female respondents respectively 45 as Eiger Brand users in Lumajang Regency with a total percentage value of 50% for men and 50% for women. This shows that men and women are equal as users of the Eiger Brand in Lumajang Regency with a total of 90 respondents . Meanwhile, based on the table of respondents based on the age category, it can be seen that respondents who have the highest value or number are respondents aged 17-23 years who use the Eiger Brand with a total value of 58 respondents or equivalent to 64%, while those with the age of 24-30 years have a value or number as many as 32 respondents or the equivalent of 36%. This shows that respondents aged 17-23 years are more dominant as users of the Eiger Brand in Lumajang Regency compared to those aged 24-30. Based on the table for respondents based on user categories, it can be seen that respondents who have the highest value or number, namely respondents with old users who are users of the Eiger Brand in Lumajang Regency with a total value of 57 respondents or equivalent to 63.3%, while respondents with new users have a value or a total of 33 respondents or the equivalent of 36.7%. This shows that old users are more dominant in using the Eiger Brand in Lumajang Regency compared to other respondents.
Table 2 . Validity Test Results
No. Questionnaire r Count r Minimal Significant Information
1.
Word of Mouth (X1) - Statement 1 - Statement 2 - Statement 3 - Statement 4
0.726 0.834 0.747 0.813
0.3 0.3 0.3 0.3
0,000 0,000 0,000 0,000
Valid Valid Valid Valid
- Statement 5 - Statement 6
0.772 0.726
0.3 0.3
0,000 0,000
Valid Valid
2.
Brand Trust (X2) - Statement 1 - Statement 2 - Statement 3 - Statement 4
0.864 0.904 0.851 0.864
0.3 0.3 0.3 0.3
0,000 0,000 0,000 0,000
Valid Valid Valid Valid
6.
Purchase Decision (Y) - Statement 1 - Statement 2 - Statement 3 - Statement 4 - Statement 5
0.809 0.835 0.786 0.825 0.825
0.3 0.3 0.3 0.3 0.3
0,000 0,000 0,000 0,000 0,000
Valid Valid Valid Valid Valid Source: Data Processing Results 2020
From the results of the calculation of the correlation coefficient table after the validity test phase of all statement items consisting of 6 Word of Mouth variable statements, 4 Brand Trust variable statements , and 5 statement purchase decision variables, all variables have r count greater than r minimum that is 0.3. Thus, all statement items are declared feasible as research instruments after the second stage of validity testing is carried out because they can extract the required data or information.
Table 3 . Normality Test, Multicollinearity , and Heteroscedacity Test
Variable Tolerance VIF
Word of Mouth (X1) 0.437 2,289
Brand Trust (X2) 0.437 2,289
Heteroscedasticity test is conducted to determine whether in a regression model there is an inequality of variance from the residuals of one observation to another. If the variance from the residual of one observation to another observation remains, it is called homoscedast icity, meanwhile for different variances it is called heteroscedasticity. A good regression model is that there is no heteroscedasticity or the assumption of heteroscedasticity is met (Umar, 2011: 179).
Source: Data Processing Results 2020
The test results show that all the variables used as predictors of the regression model show a fairly small VIF value, where all of them are below 10 and the tolerance value is more than 0.1. This means that the independent variables used in the study do not show any symptoms of multicollinearity, which means that all independent variables in this study are mutually independent, so that they can be continued in multiple linear regression testing. The results of the heteroscedasticity test showed that there was no clear pattern from these points. This shows that the regression model has no symptoms of heteroscedasticity, which means that there is no significant disturbance in this regression model.
Table 4 . T test result (partial)
Variable B R Don't count Sig.
Constant Word of Mouth
Brand Trust
1,860 0.267 0.703
0.847
4,203 11,057
0,000 0,000 Source: Data Processing Results 2020
The independent variable that has the most influence on the dependent variable as indicated by the standardized regression coefficient (ß) is the beta value. The independent variable that has the most influence on purchasing decisions is indicated by the Brand Trust variable (X 2 ) with a regression coefficient value of 0.703 . In the next test, namely the t test or partial test, Word of Mouth and Brand Trust produced significant data in accordance with the calculated t value and significant limits. This is because the value of t count is above or greater than the provisions of the t table and the significant level is also in accordance with the provisions of the significant limit . So that the conclusion that exists in the hypothesis is that Word of Mouth has a significant effect on purchasing decisions, which means that it is accepted and Brand Trust has a significant effect on purchasing decisions, which means it is accepted. Judging on the use of R Square in testing the coefficient of determination can be lifted conclusion that purchasing decisions can be influenced by independent variables consisting of Word of Mouth and Brand trusts number of 84.7% and the balance of 15.3 %, or 0, 153 purchasing decisions are influenced by variables others that were not examined by the researcher.
Research Discussion
Overall, the results of this study indicate that the condition of the respondents' assessment of the variables of this study mostly expressed their agreement. This can be shown from the number of responses from the respondents' high agreement on the conditions of each research variable. From these results, it is found that the independent variable, namely Word of Mouth, has a significant effect on a positive relationship towards purchasing decisions, Brand Trust has a significant effect on a positive direction on purchasing decisions of Eiger product users in Lumajang Regency.
Based on the results of the test analysis on the first hypothesis which states that there is a significant influence of Word of Mouth on purchasing decisions for Eiger Products in Lumajang Regency. The results showed that most consumers responded strongly to agree and agree, there were some who gave neutral, disagree, and strongly disagree with the Word of Mouth variable . These results provide evidence that the decision to purchase Eiger products in Lumajang Regency is influenced by the Word of Mouth variable . Based on these results, it is partially obtained, namely the Word of Mouth affects the decision to purchase Eiger products in Lumajang Regency.
Based on the results of the test analysis on the second hypothesis which states that there is a significant influence of Brand Trust on purchasing decisions for Eiger Products in Lumajang Regency. The results showed that most consumers gave very agree and agreed responses, there were some who gave neutral, disagreed, and strongly disagreed with the Brand Trust variable . These results provide evidence that the decision to purchase Eiger products in Lumajang Regency is influenced by the Brand Trust variable . Based on these results, it is partially obtained, namely Brand Trust influences the purchase decision of Eiger products in Lumajang Regency. It can be concluded that Brand Trust has an effect on purchasing decisions.
CONCLUSION
Based on the results of the research conducted, it shows that partially the Word of Mouth and Brand Trust variables have a significant effect on purchasing decisions for Eiger products in Lumajang Regency . Meanwhile, simultaneously Word of Mouth and Brand Trust have a significant effect on purchasing decisions for Eiger products in Lumajang Regency . Based on the calculation of R Square that the results of calculations using SPSS can be known coefficient of determination (R 2 ) obtained at 0.843 . This means that 84.3% of purchasing decisions can be influenced by independent variables, namely Word of Mouth and Brand Trust , while the
remaining 15.7% of purchasing decisions are influenced by other variables not examined in this study. For example product, price, place, product quality.
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