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Progress Conference Volume 2 Number 2, August 2019| 313

Role of Product Innovation, Quality of Service and Promotion of influence on purchase decision on Omahmu Cafe Lumajang

Imam Ghozali1, Ainun Jariah2, Jesi Irwanto3 STIE Widya Gama Lumajang

[email protected]

Abstract

Cafe or restaurant is a place that can be used as a means of exchanging ideas, gather with friends or family, or relax fellow diners. The purpose of this study was to determine the product innovation, service quality, and promotion of significant effect partially and simultaneously on purchase decisions on Omahmu cafe Lumajang. And used as a sample of 60 respondents from consumers who have purchased the product in Omahmu Cafe. TechniqueThis study using multiple linear regression analysis, the data used in this study of primary data. There are two variables in this study are independent and dependent variables. The independent variables include product innovation, quality of service and promotion while the dependent variable purchase decisions.The results of this study partially innovative products significantly influence the purchase decision but to the variable quality of service and promotion does not affect the purchase decision. Simultaneously showed that the variables of product innovation, quality of service and promotion influence on purchase decisions. Omahmu Cafe Parties should further improve the quality of service and promotions for consumers who purchase products in Omahmu Cafe can be satisfied and will always remain making purchases in Omahmu Cafe.

Keywords: product innovation, quality of service, promotion, purchasing decisions

INTRODUCTION

The development of the business world lately experienced very rapid growth is one example of growth in terms of lifestyle changes (life style). Development of the food service is often associated with higher public mobility. This is evidenced by a lot of people who meet their daily needs and practically instantly, one of which is the purchase of food and beverages at the cafe or restaurant.

Cafe or restaurant is a place that can be used as a means of exchanging ideas, gather with friends or family, or relax fellow diners. Then it can be said to eat and drink at the cafe or restaurant has become a habit to meet a person's lifestyle (modern society),

The business must have a strategy in order to please the consumer and foster a sense of enthusiastic consumers into an experience in consuming products and services, so as to make consumers impressed. Therefore, it requires a pattern to marginalize a traditional thinking in the categories of food service businesses in particular cafe. In a cafe that previously could only provide food and drinks just become a modern concept which creates a cozy atmosphere that is supported by the design of a unique place and the availability of additional facilities such as wifi, the charger is an attraction in itself in the consumer and ultimately will affect their purchase decision , Innovation is an adaptation of products, services, ideas, or both the existing processes within an organization and developed from outside the organization. Generally innovation memilliki meaning the process of adopting something new by anyone adopting it, and sebagain Ellitan process of creating new

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Progress Conference Volume 2 Number 2, August 2019| 314 products and anatan (2009: 36). Innovation should be able to make different products in the eyes of consumers so that consumers are more interested in buying the product.

Quality of service is a form of consumers' assessment of the level of service received (perceived service) with the level of service expected (expected service). Quality of service in view as one of the components that need to be realized by the company, since it has the effect to bring in new customers and existing customers can reduce the possibility to move to another company. Quality of service is defined as an activity or work which create benefits for customers at the time and place as a result of activities to build the desired changes to the service recipients wahyuni (2015: 13).

Promotion mix of the company will create something of its own assessment on the minds of consumers to promotional products directly or indirectly will create the impression of a product.

Promotion is a kind of communication that gives talks to convince potential customers about goods and services of Alma (2011: 179).

Purchasing decisions become important to note because it will be a consideration and increase sales of these products. The decision is the result of solving the problems faced by the firm. The decision must be able to answer questions about what was discussed in relation to planning. Decision consumers (consumer decision making) is an integration process that combines knowledge to evaluate the behavior of two or more alternatives, and choose one of themSetiadi (2013: 342), Purchases include the consumer's decision about what to buy, whether to buy or not, when to buy, where to buy and how to pay for it. It therein is a store where consumers will buy and payment is made, whether the consumer pay cash or creditSumarwan (2011: 377), Product innovations have significant influence on purchase decisions (Rahayu & Anggriani, 2009; Romdonah et al, 2015).

Service quality significantly influence the purchase decision (Weenas, 2013; Firdausy and Idawati, 2017). Promotion significant effect on purchasing decisions (Weenas, 2013; Aristo 2016). This finding was in contrast to other studies that stated that quality of service does not significantly influence the purchase decision (Lutfhia 2012), and the sale did not significantly influence the purchasing decisions (Firdausy & Idawati 2017)

Researchers are interested in doing research in Omahmu Cafe to determine the extent of the influence of product innovation, service quality, and promotion on purchase decisions on Omahmucafe Lumajang. Omahmucafe always crowded with visitors even though many other cafe in Lumajang. Omahmucafe serves a varied menu of food and drink, in addition, the selection of the location of the cafe is also very good support with their view that the cafe attracted many visitors.

identify and analyze the product innovation, service quality, and promotion of significant effect partially and simultaneously on purchase decisions on Omahmu cafe Lumajang.Based on the background and the description above, the researchers took the title as follows: "The Role of Product Innovation, Quality of Service and Advertising Influence on Purchase Decision on Omahmucafe Lumajang"

METHODS

This type of research is quantitative research means research method is based on the philosophy of positivism, is used to examine the population or a particular sample, data collection using research instruments, quantitative data analysis or statistics, with the aim to test the hypothesis that has ditetapkan.Untuk analyze the independent variables ( X) consists of variable product innovation, quality of service and promotion on purchase decisions on Omahmucafe Lumajang (Y), then in this study using the technique of multiple linear regression analysis, step analysis of the data used is

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Progress Conference Volume 2 Number 2, August 2019| 315 Test Instrument, Test assumptions regression, and Classical assumption Test, Multiple Linear Regression Analysis, hypothesis Testing.In this study, the population is customers who make a purchase at cafe Omahmu Lumajang,This study researchers took samples for each variable 15 people or four variables x 15 respondents = 60 samples

RESULTS AND DISCUSSION

The test results showed that all the attributes of instruments on the statement of each of the variables have met the criteria in testing the validity. It can be concluded that the instrument and the whole point statement in this study has been qualified as valid and used as a measurement tool because it can collect data and information required. It also shows Cronbach's alpha of each independent variable is in the interval from 0.601 to 0.80 are included in the criteria is reliable. So that each item statement questionnaire used in this study proved to be reliable because it can give different results if the measurements were taken back to the same subject at different times.

Classical assumption test results The test results show that the image of normality test results data show that in normal probability plot graph dots are spread around the diagonal line and follow the direction of the diagonal line. On testing multikolinieritas shows that independent variables used in the study did not show any symptoms of multicollinearity. The test results showed no heteroscedasticity clear pattern of the dots. This shows that the regression model did not have symptoms of heteroscedasticity, that there is no significant interference in this regression model.

The test results multikolinearitasshows the value of tolerance on all independent variables are above 0.10 or can also be said to approach the value 1 and VIF are quite far below the number 10. It can be concluded that there is no multicollinearity symptoms or a strong correlation between the independent variables in the regression model. In Table 2 shows that all variables used as predictors of the regression models show a fairly small VIF

The results of the regression analysis to formulate a multiple regression equation as follows:

Y = 1,067 + 0,405X1 + 0,265X2 + 0,180X3 + E

Results showed variable correlation of product innovation, quality of service, and the campaign has a unidirectional relationship on purchase decisions on Omahmu Cafe Lumajang.

The first hypothesis T test results on the X1, which values obtained product innovationt= 2.768 with 0.008 significance. By using a significance limit of 5% or 0.05 was obtainedttable of ± 2.0017. It meanst(2.768)>ttabel(2.0017), with a significance level of 0.005 under the 0.05 limit, it can be concluded that there a significant influence on product innovation purchasing decisions Omahmu Cafe Lumajang, T test results in X2 isservice quality earned value t= 1.523 with 0.133 significance.

By using a significance limit of 5% or 0.05 was obtainedttableof ± 2.0017. It meanst(1.523)

<ttabel(2.0017), with a significance level of 0.133 which is above the 0.05 significance limit it can be concluded that there influence service quality significant purchasing decisions Omahmu Cafe Lumajang. T test results on X3 is promotion earned value t= 1.248 with 0.217 significance. By using a significance limit of 5% or 0.05 was obtainedttable of ± 2.0017. It meanst (1.248) <t table (2.0017), with a significance level of 0.217 which is above the 0.05 limit, it can be concluded that there influence promotion significant purchasing decisions Omahmu Cafe Lumajang,

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Progress Conference Volume 2 Number 2, August 2019| 316 Based on the test results are known Fhitung F (12.673), which is larger than F table (2.77) which means that H0 is rejected and Ha accepted. With a significance level of 0.000 which is below the 0.05 limit, it can be concluded that the product innovation, service quality and the promotion of simultaneous significant influence on purchasing decisions.

From the results of calculations using SPSS program can be seen that the coefficient of determination (²)obtained at 0,404. This means that 40.4%buying decision can be explained by the independent variables are product innovation, quality of service and promotions while the remaining 59.6% buying decisioninfluenced by other variables that are not researched in this study.

As for the other variables in the mean is as variable pricing, ambience, and others.

The results showed that the product innovation significant partial effect on purchase decisions on Omahmu Cafe Lumajang. Some indicators related to variable product: The products presented Omahmu cafe Lumajang is a new product. Omahmu cafe provides a new product that does not exist in another cafe, one example is the campus chicken, noodles savage. Chicken campus itself is a food made of chicken meat in small pieces - small and then fried with corn starch and given the spicy flavor and after mature served with the above given bechamel sauce and were given an extra sausage that has been fried in small pieces. While noodles savage is a food made of fried noodles flavored spicy in the presentation given sausage fried in small pieces, sweet corn that has been boiled and given a bechamel sauce, with the availability of new products in Omahmu Cafe aims to make consumers interested in products the

The products presented Omahmu cafe Lumajang own market and known by consumers. Consumers have been many who know the product from Omahmu Cafe Lumajang ranging from ages 16-35 this year proves that the products presented Omahmu Cafe has been enjoyed by konsumenn that allows consumers to buy back the product.

The products presented Omahmu Cafe Lumajang is in addition to the existing product line.

Omahmu Cafe not only provide new products, but also provide products that already exist in another cafe one example is SOGEM, the goal for the mega cloudy in Omahmu Cafe diverse products and many choices so consumers will not be bored to make a purchase on Omahmu Cafe Lumajang.

The products presented Omahmu cafe Lumajang is already existing product improvement. Omahmu Cafe also provides a product that has been long known by consumers one example is ice tea, ice milk, but both products are combined into ice tehsusu and is expected to be combined both products can give satisfaction to the consumer.

The products presented Omahmu cafe Lumajang an existing product on the market but are reintroduced. Products presented Omahmu Cafe is not just a new product that does not exist in the other cafe but also presents products that already exist in other cafe one example is the potato sticks, sausage grilled fish grilled and others, but reintroduced by omahmu Cafe so much selection of products available on Omahmu Cafe so consumers will not feel bored to enjoy the existing products on Omahmu Cafe Lumajang.

Products in Omahmu Cafe Lumajang cheaper, than the number of products presented Omahmu Cafe is inexpensive, can all be reached by consumers are no exception of children who are in school, they can buy a product that is in Omahmu Cafe, with good quality but the price is cheaper than other cafe it will influence consumers to make purchases in Omahmu Cafe Lumajang. Based on the conditions described above, which causes the consumer decides to make a purchase on

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Progress Conference Volume 2 Number 2, August 2019| 317 Omahmu Cafe Lumajang, because the products are sold varied and able to meet the desires of consumers.

The second hypothesis testing results show that the quality of the waiters there are no significant influence on purchasing decisions.Quality of service is an effort to fulfill the needs and desires of consumers and accuracy of delivery to keep pace with consumer expectations, if the service is provided or felt (perceived service) as expected, then the perceived service quality is good and satisfactory. Quality of service shows the results which do not significantly because the statement is a statement in Omahmu Cafe Lumajang service airport with good manners, friendly and professional, greatly affect the emotional performance from the visitors. Good service and professional so emotional that given customer will be good but if the poor service given the emotional subscribes will be bad anyway. Omahmu Cafe Lumajang always provide good services ranging from delivering food menu until the payment process. But with the respondents that the highest good or it can not be proved that the waiter felt it was able to influence their intention to buy the product in Omahmu Cafe.

Omahmu Cafe provide services in accordance with SOP (Standard Operating Procedure) are documents related to procedures performed in chronological order to obtain the result of effective work of the employee, if the employee Omahmu Cafe has been doing service sesusai existing SOP in Omahmu Cafe, could not be in doubt again that the quality of service provided is satisfactory for consumers and convenience for consumers.

Omahmu cafe service in Lumajang quick and responsive in responding to consumer complaints.

with respondents that show the results agree. With such value proves that employees at Omahmu Cafe Lumajang respond to consumer complaints quickly and responsiveness for customer convenience, customer satisfaction part of the purpose Omahmu Cafe Lumajang to be able to get a positive result in selling their products.The attention that is given by the employee in Omahmu Cafe can say is good because it always delivers what customers need just one example when the customer requires sugar to add sweetness into the drink then karyawanpun will usher requested by the customer.

Omahmu cafe service in Lumajang care and attention to complaints and needs of consumers.

Attention will greatly affect the emotional given by the visitors to get the results in later. Superior service that is an attitude of serving the consumers are satisfactory, good quality services will create satisfaction for consumers and can foster a sense of trust is high on Omahmu Cafe. This will affect the decision-making process The purchase, if consumers feel satisfied, they will buy again and will make recommendations to others to buy in the same place.

There is a reason that can be used as a reference as evidence of why the quality of service does not affect the purchase decision for this study. In view of the reasons contained in the field of research can be concluded that the reason is about the product, consumers are more interested in products that are in Omahmu Cafe consumers assume that products presented Omahmu Cafe is a quality product and ways of presenting the food was varied, more consumers look a product of the quality of its services, although the quality of the service provided was excellent.

The third hypothesis testing results indicate that promotion is not a significant influence on purchasing decisions partially on Omahmu Cafe Lumajang. The results support previous research that has been done by Firdausy and Idawati (2017) with the title Effects of Service Quality, Price

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Progress Conference Volume 2 Number 2, August 2019| 318 and Promotion on Customers' Purchase Decision of Traveloka Online Airline Tickets in Jakarta, Indonesia. By using a multiple linear regression analysis, using statistical calculation analysis tools.

The results showed that the quality of service and ticket has a positive and significant effect on purchasing decisions while the sale does not significantly influence the purchase decision.

Testing the second hypothesis which states that there is a product innovation, service quality and the promotion of simultaneous significant influence on purchase decisions on Omahmu Cafe Lumajang.Hypothesis testing results show that the innovation of products, quality of service and promotions take effect simultaneously on purchase decisions on Omahmu Cafe Lumajang.

Althoughquality of service and promotions no significant effect on purchasing decisions, but when in combination with product innovation, it has a significant influence on thebuying decision, This shows that the three independent variables are product innovation, quality pelayaan and promotions can increasebuying decision, The consumer can decide to visit Omahmu CafeLumajang for their product innovation, quality of service and promotions competing with similar places.

Taken together (simultaneously) the third independent variable is that of product innovation, quality and promotion pelayaan show a strong influence onbuying decision shown by the coefficient of determination of 40.4% while the remaining 59.6% buying decision influenced by other variables that are not researched in this study.

CONCLUSION

Results of testing the first hypothesis stating that product innovation has a significant partial effect on purchasing decisions Omahmu Cafe Lumajang. While the service quality variables and promotion does not have a significant effect partially on purchase decisions on Omahmu Cafe Lumajang.

The test results on the second hypothesis states that a variable product innovation, quality of service and promotion simultaneously have significant influence on purchase decisions on Omahmu Cafe Lumajang shown by the coefficient of determination of 40.4% while the remaining 59.6% purchase decision is influenced by variables other non-variable researched in this study. As for the other variables in the mean is as variable pricing, ambience, location, and others.

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