Marketing Mix - Consumer Buying Interest at Tokopedia

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Marketing Mix - Consumer Buying Interest at Tokopedia

Edo Habib Maulana, Arasy Alimudin, Ani Wulandari Department of Management Narotama University

Jl. Arief Rahman Hakim No. 51 Surabaya

edohabib99@gmail.com, ani.wulandari@narotama.ac.id, arasy.alimudin@narotama.ac.id

Abstract

Marketplace is a website or online application that facilitates the buying and selling process from various stores.

This study discusses buying interest on the Marketplace. There are several factors that influence consumer buying interest, but in this study researchers only took 4 factors, namely Product, Promotion, Price and Service Quality. The purpose of this study was to analyze the effect of product, promotion, price and service quality on consumer buying interest in the Tokopedia Marketplace. This study uses a quantitative approach, namely the collection, analysis and testing of data using statistical testing. This study used 100 respondents in collecting the questionnaire, the respondents in this study were students of the economics and business faculty of Narotama University Surabaya (respondents were selected based on several predetermined criteria (purposive sampling)).

The data obtained from the results of the questionnaire were processed using the technique of Multiple Linear Regression Analysis using the SPSS program. The results showed that the variables of Product, Promotion, Price and Service Quality had a significant partial and simultaneous effect on the variable of consumer buying interest.

Keywords:

Buying Interest, Marketplace, Price, Product, Promotion, Service Quality, Tokopedia

1. Introduction

In this study, the discussion will focus on the internet as a means for buying and selling for sellers and buyers. Of course, with the internet, there will be no barriers between buyers and sellers. In the traditional buying and selling method, transactions will be carried out face to face. In this method, buyers and sellers can meet directly, buyers can see and feel the goods directly (physical and visual benefits), these things can be categorized as positive impacts in the traditional buying and selling method, but in this method also has the disadvantage that there is no time efficiency in it. The buyer must come to buy the desired item, and the seller must also have a place to sell, in addition to the inefficient transaction, the costs incurred to carry out a transaction are also large. With the internet, the negative impact is eliminated. Transactions using the internet can reduce the time and costs that must be spent on traditional methods. But on the other hand, transactions via the internet also have a negative impact, namely prone to fraudulent actions, inappropriate goods purchased, and transactions that are considered too complicated and complicated for some people. With this negative impact, a new breakthrough was created, namely E-Commerce. E-Commerce functions “to use the Internet and other networks (e.g., intranets) to purchase, sell, transport, or trade data, goods, or services” (Turban et al 2018) in the opinion above it is stated that E-Commerce functions to use the internet or other networks (intranets) to buy, sell, transport or exchange data, products, or services. E-commerce can also be said as a new place to market products digitally. It is this shift in marketing methods that makes e-commerce a way out for sellers on a micro to large scale. With digital marketing methods, it will increase the effectiveness and efficiency in sales. In E- commerce there are types of platforms that are distinguished based on their use, one of which is the marketplace. Marketplace is a website or online application that facilitates the buying and selling process from various stores. Actually, online marketplaces have more or less the same concept as traditional markets.

Tokopedia is one of the largest digital-based buying and selling companies in Indonesia. Since it was officially launched, PT. Tokopedia has succeeded in becoming one of the fastest growing Indonesian internet companies. By carrying out the marketplace and online mall business model, Tokopedia allows every individual, small store and brand to open and manage an online store. Since its launch until the end of 2015, Tokopedia's basic services that can be used by everyone for free. Tokopedia has a vision to "Build a better Indonesia through the internet", Tokopedia has a program to support Micro, Small and Medium Enterprises (MSMEs) and individuals to develop their businesses by marketing their products online.

According to Priansa (2017) buying interest is something that relates to consumers in their plans to buy a product and how many units of product are needed in a certain period. In this case, buying interest is a very

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important influence for companies, especially Tokopedia. Buying interest has many influencing factors, but this time we will discuss four factors, namely products, promotions, prices and the quality of services provided by Tokopedia. According to Silaningsih & Utami (2018) A product is anything that is offered to satisfy a need or want. In this case, Tokopedia offers services to facilitate transactions between sellers and buyers through online platforms (both through websites and applications). This certainly makes it easier for consumers to transact, so that transactions are carried out more effectively and efficiently because they can be done anywhere and anytime. According to Listyawati (2016) Promotion is a marketing effort that is media and non-media to stimulate trial and error from consumers, increase demand from consumers or to improve product quality. At this time consumers will be more attracted to companies that provide more promotions. With many consumers who are interested in using Tokopedia's marketplace services, it will automatically increase the company's market value. According to Wirayanthy & Santoso (2019) price is the sum of all the values that customers give up in order to benefit from having or using a product or service. By offering competitive prices, it will certainly increase consumer buying interest in Tokopedia. Buyers will always compare the price of a product in each existing marketplace, this is to determine which marketplace applies a cheaper price. According to Aptaguna & Pitaloka (2016) service quality can be interpreted as an effort to fulfill the needs and desires of consumers and the accuracy of delivery in balancing consumer expectations. By improving the quality of services provided by the company, it will increase consumer buying interest to use the services of the Tokopedia company. On the quality of service, consumers will look more at the company's response to a problem faced by consumers.

Problems in this study is whether Product, Promotion, Price, and Service Quality have a significant partial or simultaneous effect on Consumer Buying Interest on the Tokopedia online buying and selling site (e- commerce)?

The purpose of this study was to analyze the effect of Product, Promotion, Price and Quality on Consumer Buying Interest significantly either partially or simultaneously on the online buying and selling site (e-commerce) Tokopedia.

In this study the researchers used several empirical reviews (previous research), while the empirical reviews are as follows:

Research (Aptaguna & Pitaloka, 2016) with the title The Effect of Service Quality and Price on Interest in Buying Go-Jek Services. The purpose of this study was to analyze the impact of service quality and price on GO-JEK buying interest. GO-JEK is an online application-based transportation service. The results of the study state that: The variables of service quality and price simultaneously have a significant effect on buying interest.

The service quality variable partially has a significant effect on buying interest, while the price variable does not significantly affect the purchase request. GO-JEK GO-ride service quality is the main reason that drives customers' interest in using GO-ride services. Therefore, it is hoped that GO-JEK can continue to maintain excellent service quality to customers.

Research (Rosita, 2016) with the title The Effect of Location, Product Completeness, Product Quality, Service, Price, and Shopping Convenience on Consumer Repurchase Interest at Lotte Mart Bekasi Junction. The aims of this research are (1). examine the effect of location, product completeness, product quality, service, price, shopping convenience. (2). Knowing the contribution of the most dominant factors in influencing consumer repurchase interest. The results of the study stated that: Variables of location, product completeness, product quality, price and shopping convenience proved to have a positive effect on consumers' repurchase intention, except for the service variable that negatively affected consumers' repurchase interest at Lotte Mart Bekasi Junction. Price variable has the most dominant influence on consumer repurchase interest. This is supported by the data from the regression equation where the coefficient value of the price variable is greater than the other variables, namely 0.270 and significance. Thus the second hypothesis which states that the variable with the most dominant influence is the price variable, is partially accepted.

In this study, the author uses a theoretical review according to several experts, the theoretical review is as follows:

1.1. Buying Interest

According to Swastha in Fitriah (2018) buying interest as consumer behavior can be defined as individual activities that are directly involved in obtaining and using goods and services including the decision- making process in the preparation and determination of these activities.

1.2. Product

According to Stanton in F.Musfar (2020) the product is a set of tangible attributes, which include color, packaging price, manufacturer's prestige, retailer's prestige and services from manufacturers and retailers that may be accepted by buyers as something that might satisfy their desires.

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1.3. Promotion

According to Muslichah in (F. Sitorus & Utami, 2017) promotion is a marketing activity that seeks to disseminate information, influence, persuade, and or remind the target market of the company and its products to be willing to accept, buy, and be loyal to the products offered by the company concerned.

1.4. Price

Product price is basically the amount that customers pay for each product or service rendered. Price is a very important component of the definition of the marketing mix. It is also a very important component of the marketing plan, as it determines the profitability and viability of the company.

1.5. Service Quality

Service quality is a measure of how well the level of service provided is able to match customer expectations Lewis dan Booms in Muah & Masram (2014)

1. Correlation Between Research Variables

a. Correlation Between Product and Consumer Buying Interest

The product in this study is a service offered by the company to consumers to meet their needs.

According to Kotler and Armstrong in F.Musfar (2020) a product is anything that can be offered to a market for attention, purchase, use, or consumption and that can satisfy a want or need. With this understanding, it can be seen that consumers can have an interest in buying a product/service when consumers know the company offers products/services to consumers. In this study, researchers set the following hypothesis: The product has a significant effect on consumer buying interest.

b. Correlation Between Promotion and Consumer Buying Interest

Promotion is a company tool to introduce products/companies to consumers and potential customers.

Promotions are carried out to attract buying interest or interest in using consumers. With the right promotional strategy, consumers will be able to easily attract consumers to use the products/services offered. The correlation/relationship between promotions and consumer buying interest is in the promotional activities themselves. Where when the company carries out promotions on its products/services, consumers are expected to be interested in buying/using these products/services. In this study, the researchers set the following hypothesis: Promotion has a significant effect on Consumer Buying Interest.

c. Correlation Between Price and Consumer Buying Interest

Price is very crucial for consumers. Because consumers easily compare products/companies with one another just by looking at the prices offered. By setting an attractive price, it will certainly have an impact on the desire of consumers and potential consumers to buy/use the products/services offered by the company. In this study, researchers set the following hypothesis: Price has a significant effect on Consumer Buying Interest.

d. Correlation Between Service Quality and Consumer Buying Interest

The quality of this service can be seen in terms of security and convenience in transacting with the company. Service quality in this study also includes Customer Service responses to problems/questions posed by consumers to the company. Seeing this, it can be said that service quality is closely related to consumer buying interest.

In this study, the researchers set the following hypothesis: Service quality has a significant effect on consumer buying interest. This study also establishes a hypothesis for all independent variables (simultaneous), the hypothesis is as follows: Product, Promotion, Price, and Service Quality simultaneously have a significant effect on Consumer Buying Interest.

1.6. Theoritical Framework

Image 1 Theoritical Framework

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Notes :

= Effect partially

= Effect simultaneously

2. Methodelogy

Quantitative Research is an objective research approach that includes the collection and analysis of quantitative data and uses statistical testing methods. Quantitative research consists of two types, namely: (a) Surveys, and (b) Experiments (Hermawan & Yusran, 2017). So in this study using a quantitative research approach, namely by collecting, analyzing and testing data using statistical testing (using numbers in the calculation process in data analysis).

In this study, the population is Narotama University Surabaya Students, Faculty of Economics and Business with a total of 1,095 students. In this study, the researcher used non-probability sampling by purposive sampling, namely the researcher used separate criteria for determining the research sample. In this study, the sample used must meet the following criteria: (1) Internet users with a minimum age of 18 years, (2) Have a gadget/device with an internet network to access sites/applications (both Mobile and Laptop/PC), (3 ) Have shopped online on the Tokopedia platform at least once. The sample taken for this study amounted to 92 respondents. In order for this research to be fit, the number of respondents will be rounded up to 100 respondents provided that the sample is not less than the minimum number of respondents calculated in the calculation above.

In this study, qualitative data are previous studies as well as expert opinions which are described descriptively. For quantitative data obtained from distributing questionnaires to respondents. This study uses two data sources, namely Primary Data and Secondary Data. For data collection in this study using a questionnaire technique distributed to respondents in accordance with predetermined criteria.

In this study, the operational definition of the variable to be used consists of five variables, namely:

1. Independent Variable a. Product

X1.1 Website/application performance X1.2 Ease of accessing websites/applications X1.3 Features

X1.4 Aesthetics of the appearance of the website/application b. Promotion

X2.1 Cashback X2.2 Discount X2.3 Free Shipping X2.4 OvoPaylater Payment X2.5 Promotion Frequency c. Price

X3.1 Price competitiveness X3.2 Price affordability X3.3 Price match with benefits d. Service Quality

X4.1 Timeliness of service X4.2 Service accuracy X4.3 Manners and friendliness X4.4 Ease of getting service X4.5 Consumer convenience 2. Dependent Variable

a. Buying Interest

Y1 Transactional interest Y2 Referral interest Y3 Exploratory interest

To test the quality of the data, this study uses data validity and data reliability tests. Furthermore, to test the classical assumption using the normality test (using the Kolmogorov-Smirnov normality test), the multicollinearity test, and the heteroscedasticity test (using the Glejser test). To test the hypothesis, using

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multiple linear regression analysis, simultaneous test (F-test), individual parameter test (t-test), and coefficient of determination test (R²-test).

3. Result and Discussion

3.1 Result

1. Data Quality Test

Based on the results of the SPSS output, the data obtained from the distribution of the questionnaire by the researcher is valid. This is evidenced by r count > r table. Total r table = 0.195 (df = n-2 -> df = 50 - 2 = 48, with a significance of 0.05). Comparing the results of "Corrected Item-Total Correlation" on each data, it can be seen that each variable has a larger number of r counts than r tables.

Based on the results of SPSS output, the data obtained by the researcher is reliable data. This is evidenced by the value of Croanbach's Alpha in the SPSS output results on each variable showing a value greater than 0.60 which means the data is reliable.

2. Classic Assumption Test

This study uses the SPSS program for all data analysis activities. For the normality test, it can be stated that the Asymp value. Sig (2-tailed) of 0.200 indicates a significant value greater than 0.05 which means the data is normally distributed. For the multicollinearity test, the SPSS output results are as follows:

Table 1 Multicollinearity Test Variable Collinearity Stastictis

Tolerance VIF

Product 0.629 1.591

Promotion 0.640 1.562

Price 0.757 1.321

Service Quality 0.669 1.495

Source: data processed using the SPSS program

Based on the SPSS output results seen in the Coefficients table and Collinearity Statistics Column, the test results above are known to have the Tolerance value in each variable having a value greater than 0.10, while the VIF value in each variable has a value less than 10 which is shows that there is no multicollinearity in the regression model in this study. For the heteroscedasticity test the results of the SPSS output are as follows:

Table 2 Heteroscedasticity Test

Model Sig. Explanation

Product 0.134 No Symptoms of Heteroscedasticity

Promotion 0.341 No Symptoms of Heteroscedasticity

Price 0.457 No Symptoms of Heteroscedasticity

Service Quality 0.141 No Symptoms of Heteroscedasticity Source: data processed using the SPSS program

Based on the results of the SPSS output above, it can be seen that the value of Sig. each variable has a value greater than 0.05 (basic decision-making Glejser Method), it can be said that there is no symptom of heteroscedasticity in this study.

3. Hypothesis Test

For the multiple linear regression test the results of the SPSS output are as follows:

Table 3 Multiple Linear Regression Test

Model Unstandardized

B

(Constant) -0.717

Product 0.201

Promotion 0.442

Price 0.214

Service Quality 0.448

Source: data processed using the SPSS program

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From the results of the SPSS output table above, the linear regression equation for this study is obtained as follows:

Y = −0.717 + 0.201𝑋₁+ 0.442𝑋₂+ 0.214𝑋₃+ 0.448𝑋₄+ 𝑒 Based on the multiple linear equations, it can be concluded as follows:

The regression coefficient value of the Product variable (𝑏₁) is 0.201, which means that if the Product variable is increased by one unit with the assumption that the Promotion, Price and Service Quality variables are considered constant, it will increase Consumer Buying Interest by 0.201. The regression coefficient value of the Promotion variable (𝑏₂) is 0.442, which means that if the Promotion variable is increased by one unit with the assumption that the Product, Price and Service Quality variables are considered constant, it will increase Consumer Buying Interest by 0.442. The regression coefficient value of the Price variable (𝑏₃) is 0.214, which means that if the Price variable is increased by one unit with the assumption that the Product, Promotion and Service Quality variables are considered constant, it will increase Consumer Buying Interest by 0.214. The regression coefficient value of the Service Quality variable (𝑏₄) is 0.448, which means that if the Service Quality variable is increased by one unit with the assumption that the Product, Promotion and Price variables are considered constant, it will increase Consumer Buying Interest by 0.448.

For the simultaneous significance test (F-Test) it can be stated that the calculated F value is 32.825 greater than the F table value (Table F value = 2.46), while the Sig value of 0.000 is less than 0.05 which means that the independent variable (Product, Promotion, Price and Service Quality) simultaneously have a significant effect on the dependent variable (Consumer Buying Interest).

For the individual parameter significance test (t-test) the SPSS output results are as follows:

Table 4 Individual Parameter Significance Test (t-test)

Model t Sig. Explanation

(Constant) -0.584 0.561

Product 2.536 0.008 SIGNIFICANT

Promotion 7.603 0.000 SIGNIFICANT

Price 2.718 0.008 SIGNIFICANT

Service Quality

7.617 0.000 SIGNIFICANT

Source: data processed using the SPSS program Based on the results of the SPSS output, it can be concluded as follows:

The results of the t-test on the Product variable have a t-count value of 2.536 and a Sig value. equal to 0.008, then the value of t count > 1.988 (t table) and the value of Sig < 0.05, assuming other variables are considered constant, so it can be concluded that the Product variable partially has a significant effect on Consumer Buying Interest. The results of the t-test on the Promotion variable have a t-count value of 7.603 and the value of Sig. of 0.000, then the value of t count > 1.988 (t table) and the value of Sig < 0.05, assuming other variables are considered constant, so it can be concluded that the Promotion variable partially has a significant effect on Consumer Buying Interest. The results of the t-test on the price variable have a t-count value of 2.718 and the value of Sig. of 0.008, then the value of t count > 1.988 (t table) and the value of Sig < 0.05, assuming other variables are considered constant, so it can be concluded that the price variable partially has a significant effect on Consumer Buying Interest. The results of the t-test on the Service Quality variable have a t-count value of 7.617 and the value of Sig. of 0.000, then the value of t count > 1.988 (t table) and the value of Sig < 0.05, assuming other variables are considered constant, so it can be concluded that the variable of Service Quality partially has a significant effect on Consumer Buying Interest.

For the coefficient of determination test (Test-R²) it can be stated that the Adjusted R Square value is 0.580 or 58%. This means that the level of consumer buying interest that can be explained by the independent variables (Product, Promotion, Price and Service Quality) is 58%, while the remaining 42% is influenced by other variables not examined in this research.

3.2 Discussion

The product variable in this study is a service that has a significant effect on consumer buying interest.

In this study it is proven that one way to attract consumer buying interest is by providing products/services that are in accordance with consumer demand. Improving the quality of the company's products/services is needed to attract more consumers' buying interest. The results of this study are in line with research conducted by Rosita (2016) with the title The Effect of Location, Product Completeness, Product Quality, Service, Price, and Shopping Convenience on Consumer Repurchase Interest at Lotte Mart Bekasi Junction. The results showed that the product variable in this study had a significant positive effect on consumer buying interest.

Promotion has a significant effect on consumer buying interest. Promotion is the spearhead of a company's sales. Because with this promotion, consumers will get to know the company better and will generate

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buying interest/interest for consumers in the products/services offered by the company. The results of this study are in line with research conducted by Widhiani & Idris (2018) with the title The Effect of Promotion, Ease of

Use, Consumer Trust and Information Quality on Buying Interest on the Bukalapak Site (In Diponegoro University Students). The results showed that the promotion variable in this study had a positive effect on consumer buying interest.

Price has a significant effect on consumer buying interest. Price is a crucial factor for consumers, because the financial condition of consumers at the time this research was conducted was chaotic due to the COVID-19 pandemic. Of course, by looking at this, the price becomes an important factor for consumers in terms of buying interest in a company. The results of this study are in line with research conducted by Lutfie &

Marcelino (2020) with the title How Price Perception And Trust Affected Millennial Online Buying Interest During Covid-19 Pandemic In West Java. The results showed that millennial consumers' online buying interest during the COVID-19 outbreak was influenced by product price perceptions.

Service quality has a significant effect on consumer buying interest. The quality of service provided by the company can certainly affect consumer buying interest, this is because if the service provided by the company is not optimal then consumers will also think again to buy/use the products/services offered by the company. The results of this study are in line with research conducted by Giuma Mahfud & Soltes (2016) with the title Effect Of E-Service Quality On Consumer Interest Buying (Case Study On The Website Korean Denim). The results of this study indicate that the hypothesis of this study is that the quality of e-service has an effect on consumer buying interest in Koren Denim, which means that the quality of electronic services affects consumer buying interest.

4. Conclussion

Based on the results of the study, it can be concluded that each independent variable (Product, Promotion, Price, and Service Quality) in this study partially has a significant effect on the dependent variable (Consumer Buying Interest). Furthermore, each independent variable in this study simultaneously has a significant effect on the dependent variable. The advice that can be given to the company is that the results of the research above can be used as a reference for Tokopedia to develop strategies in terms of marketing (because this research focuses on the marketing field). For the next student/academic/researcher who will use Tokopedia as the object of their research, it is expected to use variables that are not examined in this study, so that research on the object of Tokopedia can be more varied.

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Biography

Edo Habib Maulana, is a Student College of Management Major at Narotama University Surabaya since 2017.

He focused on Marketing in Management Major, and have some several small business in various fields such as Clothing brand, Talent Agency, Event Organizer and Virtual Product Shop.

Arasy Alimmudin, is an Associate Professor Strategic Management and Lecturer of Narotama University, Surabaya, Indonesia.

Ani Wulandari, is at present a lecturer of Management Major & Director of International Relations Office and International Class of Narotama University since 2011. Her forte in strategic management has led her into various researches in management and business field indexed in national and international journals. Her professional contributions expand Narotama University global outreach as well as international student management within the university.