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Price, Product Quality, and Promotion on Purchase Decision
Ali akbar, R. Agus Baktiono, Muchamad Arif
Department of Management Faculty of Economics and Business Narotama University
Jl. Arif Rahman Hakim 51 Surabaya, Indonesia aliakbarminoz@gmail.com, agus.baktiono@narotama.ac.id
Abstrak
This study aims to determine the effect of price, product quality, and promotion on the decision to buy Kenkaraage Fast Food products in Depok City. The sample was 100 respondents. The instrument was questionnaire. It used IBM SPSS 25 softwares to analyze the data. Based on the results of the regression analysis, the equation was Y = 4.760 + 0.192X1 + 0.307 X2 + 0.284 X3 + e. Then, the result of the test showed that the data is valid and reliable.
It was also no multicollinearity, heteroscedasticity, and normally distributed. The T-test showed that the product quality variable (X2) had a t-count value of 2.180 with a significance of 0.032 and Promotion (X3) which had a t-count value of 3.123 with a significance of 0.002, which meant that product quality and promotion variables affected purchasing decisions whereas the price variable (X1) had no effect on purchasing decisions. It had a t value of 1.882 with a significance of 0.063. Then, F-test showed that the variable price, product quality, and promotion had a simultaneous effect on purchasing decisions with the calculated F result of 17,142 with significance of 0,000. Next, the determination test showed that the ability of the independent variable in explaining the dependent variable was 32.8%.
Keywords:
Price, Product quality, Promotion, Purchase Decision
1. Introduction
In the era of modernization as it is today, a practical and instant lifestyle has developed that affects almost the entire human population in the world. Instant lifestyle is a lifestyle that prioritizes the value of practicality, speed, and time efficiency. For some people, it is fast, practical and efficient. has become a major requirement in their daily activities. This certainly affects business competition, which is then responded by most manufacturers in designing products that suit the needs of the instant lifestyle of the community. A business that is affected by people's lifestyles is the restaurant business. One of them is Kenkaraage fast food restaurant, a culinary business engaged in online food that provides bento-themed fast food, packed with rice and side dishes in practical packaging that can be carried around. and eaten whenever and wherever. The hallmark of this restaurant is the arrangement of the types of side dishes and colors in various serving containers that are pleasing to the eye and inviting. Almost everyone likes food like this, the presentation is fast so it can be served anytime and anywhere.
hygienic and practical presentation, besides that the processing and preparation is fast and suitable for those who are always busy. This business is a new business located in Depok, and has customers very quickly. it only took 1 week for this business to be accepted in the community. Its first business operation was in September 2020 on Jalan Rawa Pule, and there is no bento box business like this in Depok city. And I am interested in doing research on this brand because of its business expansion. so fast, even though it only moves for online food. This could be one business idea for the whole community in the midst of this pandemic. Based on this background, the researcher is interested in raising a research topic with the title "The Influence of Price, Product Quality, and Promotion on the Decision to Buy Kenkaraage Fast Food products in the city"
1.1. Empirical Review
1. Research conducted by Eky Jumrotul Laila, entitled "Influence of Product Quality and Price on The Purchase Decision of the Rabbani Hijab in Qta Ponorogo Boutique." The results showed that the product quality variable (X1) had a negative and insignificant effect, so it had no effect on purchasing decisions (Y) and the price variable (X2) had a positive and significant effect, so that it had an effect on purchasing decisions (Y).
2. Research conducted by Ruth F. A. Pasaribu, Ira Lestari Sianipar, Yona F. Siagian, Vier Sartika, entitled "
Effect of Promotion and Price on Purchase Decisions of Soyjoy Products PT. Amerta Indah Otsuka Medan City (Case study of isotonic drink business)” The results of this study show that. Partially, the promotion variable (X1) has a positive and significant effect on purchasing decisions (Y) Partially, the price variable (X2) has a positive and significant effect on purchasing decisions (Y) Simultaneously, the promotion variable (X1) and price (X2) have an effect positive and significant towards purchasing decisions (Y)
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3. Research conducted by Devi Puspita Sari, Audita Nuvriasari with the title "Influence of Brand Image, Product Quality and Price on the Purchase Decision of Eiger Brand Products (Study on Students of Mercu Buana University Yogyakarta) "In this study it can be explained that brand image, product quality and the price partially has a positive and significant effect on purchasing decisions. Based on the results of the analysis of the F test, it can be explained that brand image, product quality and price simultaneously have a positive and significant effect on purchasing decisions. the Eiger brand is a product quality variable.
2. Review
2.1. Buying decision
1. Definiti of Purchase Decision
According to (Kotler, 2013) the purchase decision is the step where in the buying decision process, the buyer where the consumer actually buys.
Factors Influencing Purchase Decisions 2. Product.
According to (Hurriyati yati, 2011) something that can be offered by producers to be noticed, sought, purchased, used and requested or consumed by the market as a fulfillment of the needs or desires of the relevant market.
3. Price
According to (Buchari Alma & Donni, 2014) There are three basic pricing methods that can be used in determining prices, namely, cost-based pricing, competition-based pricing, and demand-based pricing.
4. Promotion
Is the desire to consume a product or service by conveying the advantages, goodness of the product and persuading consumers to buy the product or service.
5. Location
According to Buchari Alma and Donni, 2014 location is a place where the company's products are located or ensure that the product is available when and where the product is cold.
6. Purchase Decision Indicator
According to (Kotler & Keller, 2016) in his book entitled Marketing management global edition, Kotler mentions that there are 4 indicators of purchasing decisions, including stability in a product, habits in buying products, providing recommendations to others, and making repeat purchases
2.2. Price
1. Price Definition
Price according to (Jimmy Hasoloan, 2010) is an exchange rate of goods or services products expressed in monetary units. Price is one of the determinants of the success of a company because the price determines how much profit the company gets from selling its products in the form of goods and services.
2. Price Indicator
According to (Kotler, P. & Armstrong, 2012) price indicators are as follows: Prices are in accordance with benefits, prices must be affordable by purchasing power or ability, prices offered are in accordance with product quality, prices must have price competitiveness with similar products
2.3. Product quality
1. Product Quality Definition
According to (Kotler, Philip, 2006) product quality is one of the main market positioning tools. Product quality has a direct impact on product or service performance, therefore quality is closely related to customer value. In a narrow sense quality can be defined as free from damage.
2. Product Quality Indicator
According to Kotler et al (2017)product quality indicators are: Good taste, product features and packaging durability.
2.4. Promotion
1. Definition of Promotion
According to (Ferrinadewi, 2011:165) promotion is one of the variables in the marketing mix that is very important to be carried out by companies in marketing their products or services. Promotion is any type of marketing activity aimed at driving demand. Promotion is a one-way flow of information or persuasion created to direct a person or organization to actions that create exchanges in marketing.
2. Promotion Indicator
According to P Kotler, Keller (2007) promotion indicators are: Promotion reach, Promotion quality, Promotion quantity, Promotional attractiveness.
71 2.5. Purchasing Decision
1. Definition of Purchasing Decision
According to (Morissan, 2010) The purchase decision is the next stage after the intention or desire to buy, but the purchase decision is not the same as the actual purchase (actual purchase).
2. Indicators of Purchasing Decision
According to (Kotler & Keller, 2016) In his book entitled Marketing Management Global Edition, Kotler mentions that there are 4 indicators of purchasing decisions, including stability in a product, habits in buying products, providing recommendations to others to make repeat purchases.
2.6. Relationship Between Variables 1. Price Relationship with Purchase Decision
According to (Kotler, 2014) if the company does not set the price correctly, then this will be fatal in the future, the price will always be associated with the quality of the product, if the price set is not in accordance with the quality it will affect the consumer's decision to buy. research conducted by Kurniawan and Erbi Widajanti stated that the results of data analysis obtained a p-value of 0.000 <0.05, so Ho was rejected, meaning that there was a significant effect of price (X2) on purchasing decisions (Y)."There is a significant effect of price on the decision to purchase Djarum Super Cigarettes in the community in Sragen Tengah Village, Sragen District", the truth is proven. It can be concluded that at a certain price level, if the benefits felt by consumers increase, the value will also increase so that the consumer's decision to make a purchase of the product will increase.
2. Product Quality Relationship with Purchase Decision
The results of research by Fimaulida, Rizky (2010) in (Soewito, 2011) concluded that product quality had a significant and positive effect on purchasing decisions for Kijang Inova Type G at PT. Nasmoco Youth Semarang. Good product quality will provide a good perception in the minds of consumers.
3. Promotion Relationship to Purchase Decision
The results of research conducted by (Gigih, 2019) prove that promotions have a significant effect on purchasing decisions, giving an understanding that the higher and attractive the promotions carried out by the company, the higher consumer decisions in making purchases and subscribing to these products/services.
2.7. Research Conceptual Framework
Figure 1 Research Conceptual Framework
3. Methodology
3.1. Research ApproachIn this study, all the necessary data were collected using a survey approach using a questionnaire as an instrument of data collection carried out in this study
Price(X1)
Product Quality(X2)
Purchase decision (Y)
Promotion(X3)
H1
H3 H4
H2
72 3.2. Research Location and Time Plan
The location of this research was carried out in Depok City, on Jalan Rawa Pule 5 No. 95 RT 003 RW 02 Kukusan, Beji District, Depok City.
3.3. Sample And Population 1. Populations
The population in the study is the area that researchers want to study. According to (Muri Yusuf, 2014)population is / is interpreted as a generalization area consisting of: objects / subjects that have certain qualities and characteristics that are determined by researchers to be studied and then conclusions are drawn.
The population in this study were consumers of Kenkaraaage fast food restaurant in Depok 2. Sample
According to (Sunyoto, 2014) the sample is part of the population whose characteristics are to be studied, and are considered to be representative of the entire population.
In this study, the authors used a sampling technique in the study, due to various limitations ranging from limitations of time, energy and others. However, in this study the author tries to make the sample in this study able to represent all 100 respondents
3.4. Research Variables
According to (Sugiyono, 2014) "research variable is an attribute or nature or value of people, objects or activities that have certain variations set by researchers to be studied and then drawn conclusions. For example, weight, height, attitude, motivation, and others
The variables of this study consisted of independent and dependent variables. According to (Sugiyono, 2014) The independent variable is a variable that affects or is the cause of the change or the emergence of the dependent variable (bound). The dependent variable is the variable that is influenced or that becomes the result, because of the independent variable "The independent variable in this study is the letter X, and the dependent variable is the letter Y. Promotion (X3) and Purchase Decision (Y).
3.5. Data types and sources
In this study, the type of data used is quantitative data, this is because in data collection it is collected using a questionnaire or questionnaire that will be given to the research sample. According to(Siyoto, S., & Sodik, 2015) Quantitative data is data in the form of numbers / numbers that can be processed / analyzed using mathematical or statistical calculation techniques
3.6. Definition Of Operational Variables 1. Price
According to (Machfoedz, 2010) price is the amount of money charged for a product or service. The broad definition of price is the amount of value exchanged by consumers for the benefits of ownership or use of a product or service. whereas historically price has been the main factor influencing the choice of a buyer who determines market share and profit level with indicators Price according to benefits, Prices must be affordable by purchasing power or the ability of consumers, Prices offered are in accordance with product quality, Prices must have price competitiveness with similar products.
2. Product quality
According to (Kotler, Philip, 2006) product quality is one of the main market positioning tools. Product quality has a direct impact on product or service performance; therefore quality is closely related to customer value. In a narrow sense quality can be defined as free from damage.with indicators of good taste, product features, durability of packaging packaging.
3. Promotion
According to (Bell, 2013) promotion is all types of marketing activities aimed at driving demand. Promotion is a one-way flow of information or persuasion made to direct a person or organization to actions that create exchanges in marketing. With indicators Promotion reach, Promotion quality, Promotion quantity, Promotion attractiveness.
4. Purchase decision
According to (Kotler, 2013) the purchase decision is a step where in the buying decision process, the buyer where the consumer actually buys. According to (sukirno, 2011) Purchasing decision is an individual activity that is directly involved in obtaining and using the goods offered. stability in a product, habits in buying products, providing recommendations to others, and making repeat purchases.
3.7. Data Collection Technique
In this study, data were collected using a questionnaire or questionnaire. In this study, questionnaires were distributed to consumers at the Past Food Kenkaraage Resto, Depok City.
73 3.8. Measurement Scale Type
The data processing system carried out in this study was using a Likert Scale, which is a scale used to measure attitudes, opinions and perceptions of a person or group of people about social phenomena. (Situmorang, 2017) In this study the respondents chose one of the available answers, then each answer was given a certain score. This total score is interpreted as the respondent's position on the Liker Scale
3.9. Data Analyze Technique 1. Validity Test
Validity is a measure that shows the level of validity and expertise of an instrument. Interpretation of the correlation coefficient to state the validity of the question item, if the coefficient refers to a minimum number of 0.3. The higher the correlation coefficient value, the more valid the question item (Sukmadinata, 2010) 2. Realibility Test
Reliability is actually a tool to measure a questionnaire which is an indicator of a variable or construct. A questionnaire is said to be reliable or reliable if a person's answer to a question is consistent or stable over time (Ghozali, 2013)Reliability was measured with the help of the SPSS 25 for windows program which provides facilities for measuring reliability with the Cronbach Alpha (α) statistic test.
3. Classical Assumption Test
The classical assumption test is carried out so that the regression model used can provide representative results. Classical assumption test consists of:
1) Normality Test: The normality test aims to test whether in the regression model, the confounding or residual variables have a normal distribution.
2) Multilinearity Test: The multicollinearity test aims to test whether in a regression model there is a correlation between the independent variables.
3) Heteroscedasticity test: The heteroscedasticity test aims to test whether in the regression model there is an inequality of variance from one observation residual to another observation.
3.10. Hypothesis Test
1. T test (Partial): basically shows how far the influence of one explanatory or independent variable individually in explaining the variation of the dependent variable (Ghozali, 2013)The T test is used to determine whether the independent variable partially affects the dependent variable. The results of the partial test of the effect of price and product quality on the decision of Resto past food Kenkaraage Depok city
2. The F statistical test is intended to determine the effect of the independent variables (price, product quality and promotion) simultaneously or together on the dependent variable (purchase decisions).
(Ghozali, 2013)One way to do the F test is to compare the calculated F value with the F value according to the table. If the calculated F value is greater than the table F value, then we accept the alternative hypothesis which states that all independent variables simultaneously affect the dependent variable
3.11. Multiple Regression Analysis
According to (Sunyoto, 2014), multiple regression analysis is an analysis used to determine the effect of two or more independent variables (X1,2,3……n) on the dependent variable (Y). Multiple linear regression model in this study was used to state the relationship between the questionnaire independent variables and the dependent variable. About price (X1), product quality (X2) and promotion (X3) on the purchase decision of Past Food Kenkaraage in Depok City. Multiple regression analysis was carried out using SPSS program
3.12. Coefficient of Determination Test
The coefficient of determination (𝑅2) essentially measures how far the model's ability to explain variations in the dependent variable is. (Ghozali, 2013).
4.Result and Discussion
4.1. Result1. Description of Research Result Data
Respondents totaled 100 people consisting of 42 men and 58 women. And consists of 17 people aged <20 years, 67 people aged 20-30 years, 15 people aged 31-40 years. Based on profession, respondents consist of 28 private employees, 9 civil servants. 55 students / students, and 8 people who have other professions.
2. Validity Test
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The results of the validity test were carried out using 30 samples and in the calculations showed that all questions from the three variables Price (X1), Product quality (X2) and Promotion (X3) were valid with a Pearson correlation value above rtable 0.361.
3. Realibility Test
Based on the calculation results, the Cronbach's alpha value for the price variable is 0.785, product quality is 0.773, Promotion is 0.772, and Purchase Decision is 0.733. From these results, all variables have results above 0.60, this shows that each question is able to obtain consistent and reliable data.
4. Classical Asumption Test 1) Normality Test
Figure 2 Normality Test P-Plot
From Figure 2 above, it can be seen in the normal p-plot curve that the points spread around the diagonal line and the spread is not too far or wide. This states that the regression model is normally distributed.
2) Multikolinierity Test
Table 1 Multikolinierity test Result
a. Dependent Variable: Keputusan pembelian
From table 1 the results of tolerance and VIF from the independent variables include: Price (X1) has a tolerance value of 0.518 and VIF 1.931, Product quality (X2) has a tolerance value of 0.587 and VIF 1.704, and Promotion (X3) has a tolerance value of 0.793 and VIF 1,261 from these results, it can be concluded that, there is no correlation between the independent variables. This is evidenced by the tolerance value of none of the variables below 0.1 and the VIF value of the independent variable is not above 10, this means that this regression model does not have multicollinearity symptoms and can be used in research.
3) Heteroskedastisity Test
Coefficientsa
Type Collinearity Statistics
Tolerance VIF
1 (Constant)
Price (X1) 0,518 1,931
Product quality (X2)
0,587 1,704
Promotion (X3) 0,793 1,261
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Table 2 Glejser Heteroskedastisity Test Result Coefficientsa
Variabel Sig. Information
1 (Constant) 0,070
Price (X1) 0,053 No Heteroskedasticity Occurs Product quality (X2) 0,147 No Heteroskedasticity Occurs Promotion (X3) 0,995 No Heteroskedasticity Occurs
From table 2 above, it can be seen that the results of the heteroscedasticity statistical test in this regression model show the results of the significance of each variable, including: Price (X1) 0,053. Product quality (X2) 0,147. Promotion (X3) 0,995. Where there is no variable that has heteroscedasticity, as evidenced by the absence of variables that have a significance value below 0.05.
4.2. Hypothesis Test 1. Partial test ( t test )
Table 3 Hypothesis Test
T test Result a. Dependent Variable Purchasing Decisions
Based on the results of the calculations on the t test, it can be concluded that, product quality and promotion affect purchasing decisions because it has a t-count value above 1.984 and a significance below 0.05. While the price variable has no effect on purchasing decisions because it has a t-count value that is less than t-table and a significance above 0.05
2. Simultaneous Test (F test)
After doing the F test on SPSS, it is known that the value of t count is 17,142 which means it is greater than the value of f table 2.70. And the result of the significance is 0.000 which means it is smaller than 0.05, it can be concluded that the variable Price, Product Quality, and Promotion simultaneously affect the Purchase Decision Variable
3. Multiple Regression Test
After testing the Multiple Linear Regression Analysis, the equation is obtained:
Y = 4.760 + 0.192X1 + 0.307 X2 + 0.284 X3 + e Based on this regression equation, it can be seen that:
1) The regression coefficient value of the Price variable is 0.192, meaning that if the Lifestyle variable is increased by one unit, it will increase the Purchase Decision by 0.192
2) The regression coefficient value of the Product Quality variable is 0.307, meaning that if the Brand Image variable is increased by one unit, it will increase the Purchase Decision by 0.307
3) The value of the regression coefficient of the promotion variable is 0.284, meaning that if the Brand Image variable is increased by one unit, it will increase the Purchase Decision by 0.284.
4) From the results of the above data analysis, it can be seen that the Promotion variable is the most dominant variable among the other independent variables with the largest calculated f value of 3.123 while the Price variable is the least dominant with a calculated f value of 1.882.
4. Coefficient of Determination Test
The value of Adjusted R Square in this study is 0.328 or 32.8%, which means that the level of the purchasing decision variable (the dependent variable) that can be explained by the independent variables (price, product quality and promotion) is 32.8%, while the remaining 67.2% is influenced by the variable. outside of this research.
4.3. Discussion
Purchase decisions occur after a person's consideration. These considerations include many things, in this study, for example, discussing several variables that might influence someone in making purchasing decisions such as price, product quality, and promotion. After testing based on data obtained through questionnaires, the
Coefficientsa
Type Unstandardized Coefficients Standardized Coefficients t Sig.
B Std. Error Beta
1 (Constant) 4,760 1,550 3,071 0,003
Price (X1) 0,192 0,102 0,215 1,882 0,063
Product quality (X2) 0,307 0,141 0,234 2,180 0,032
Promotion (X3) 0,284 0,091 0,289 3,123 0,002
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results showed that only the price variable had no effect on purchasing decisions, while the product quality and promotion variables have an influence on purchasing decisions after statistical testing using the IBM SPSS 25 . program.
5.Conclusion and Suggestion
5.1. ConclusionFrom the results of the above discussion, it can be concluded that
1. Product quality and promotion have an effect on purchasing decisions, while price has no effect. Which means H2 and H3 are accepted while H1 is rejected
2. Promotion is the variable that has the greatest influence on purchasing decisions among other variables.
3. Simultaneously, the variable price, product quality and promotion affect the purchase decision, which means that H4 is accepted
4. The results of the coefficient of determination test show that the ability of the independent variable in explaining the dependent variable is 32.8%, the rest is explained by other variables outside the study.
5.2. Suggestion
1. For companies (Resto Fast Food Kenkaraage)
It is hoped that the management should pay more attention to the price factor and the need for consideration of the price.
2. For Academics
It is hoped that it can be used as a reference and documentation as a reference for research, furthermore in conducting research related to purchasing decisions
3. For further researchers
It is hoped that the results of the research above can be used as a comparison with the research to be carried out, can also be used as a reference for research that will be developed again in the next research.
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Biographies
Ali akbar, born in Ampah, Central Kalimantan, is currently pursuing a bachelor's degree in management economics 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
