Repurchase Intention at Café Fruts99 Surabaya

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The Effect of The Store Atmosphere,Variation of Products and Promotional Media Through Instagram on Impulse Buying and

Repurchase Intention at Café Fruts99 Surabaya

Lily Betherina Tilting, I Gede Arimbawa

Management Major, Faculty of Economics and Business, Narotama University [email protected], [email protected]

Abstract

Repurchase intentions and purchasing decisions are very influential in building a business. Many factors influence repurchase intentions and purchase decisions, including product variations, Instagram promotion media, and layout atmosphere. The purpose of this study is to determine how the influence of layout atmosphere, product variations, and promotional media either simultaneously or partially on purchasing decisions and repurchase intentions. Data collection using a questionnaire. The research method used a random sample of 100 people. The analysis method uses PLS version 3.3.2. These results indicate that the Purchase Decision variable (Y1) can be influenced by the Store Atmosphere variable (X1), Product Variation (X2) and Promotion Media through Instagram (X3) of 67.9% and the rest is influenced by other factors while Repurchase Intention (Y2) can be influenced by the variable Store Atmosphere (X1), Product Variations (X2) and Media Promotion via Instagram (X3) of 64.9% and the remaining 35.1% influenced by other factors not examined in this study. Then the increase in value indicated by the difference in the acquisition of numbers for the two variables above shows that the Purchasing Decision variable as an intervening variable has sufficient influence on the repurchase intention variable, although not in a large number.

Keywords :

Impulse Buying, Media Promotion, Product Variations, Repurchase intention, Store Atmosphere.

1. Introduction

The presence of this Fruts99 café is visited by many young people who are just right for hanging out or doing their assignments and some even have families visiting the café. Café is becoming famous because of the internet, especially on social media on Instagram, because Instagram is very popular and is used by all people, both young and old. So that this cafe promotes on Instagram media by taking interesting and unique feeds, interesting words so that many visitors are curious about the café.

Figure 1. Graph of Café Fruts99 Income development in 2017 to 2019 Source: Author, data processed, 2020

From the data above, it can be seen that Café Fruts99 Surabaya has decreased in 2019 . Various factors that must be improved in order to make a Purchase Decision by increasing a comfortable store atmosphere will be an added value that will be considered for customers intending to buy back. Store atmosphere with an attractive interior design will invite customers to come. However, it is still a challenge for business people to create a truly comfortable place . The next factor is to get customers so that they are not less competitive with competitors who are increasingly being found with product variations, Fruts99 café not only provides food and drinks but also desserts, snacks, waffles and ice as well. Another factor that concerns customers is Media Promotion on Instagram. Because purchasing decisions are currently influenced by promotions, especially in this modern era, many technologies are increasingly sophisticated with the existence of social media applications such as Instagram, Facebook, Twitter and others, but the Fruts99 Café prioritizes promotional media on Instagram to spread its promotional message because it is widely used. various kinds of groups such as

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teenagers, adults and even parents, both male and female. With Instagram, entrepreneurs can communicate in two ways with consumers, because the promotional media on Instagram can be in the form of images and videos to convey the latest products. Therefore, to increase repurchase interest, consumers must recall the company by conducting promotions. That there is a relationship between Purchasing Decision and Repurchase Intention variables. Based on the research results, it is known that Purchasing Decisions are significant towards repurchase intention either partially or simultaneously.

Based on the description of the background of the problem above, the authors are interested in the phenomenon of Café Fruts99 Surabaya to conduct research with the title "The Influence Of Atmosphere Store, Product Variation, Media Promotion Through Instagrams On Purchase Decisions And Repurchase Intention".

2. Literature Review

2.1. Understanding Store Atmosphere

Kotler & Keller, (2013) Restaurant atmosphere according to one of the pioneers in advocating the use of the atmosphere as a marketing tool, defines this term as consciously designing space to produce specific emotional effects on buyers to increase the probability of their purchase. As mentioned in the introduction, the atmosphere is captured through the senses, and, as such, the sensory stimuli in the atmosphere can be divided into the basic five senses of man, namely, sight, sound, smell, touch and taste.

2.2. Understanding Product Variations

Product variety or product diversity is not new in the marketing world, where this strategy is widely used by marketing practitioners in their product launch activities. According to Kotler & Keller (2009) , product variation as a separate expert in a brand or product line can be distinguished based on size, price, appearance or characteristics.

2.3. Definition of Promotional Media

According to Simamora (2004) promotion is a company effort to influence prospective buyers through the use of all elements or marketing mix.

2.4. Definition of Purchase Decision

The purchasing decision according to Kanuk & Schiffman (2004) is the selection of two or more alternative purchasing decision choices, which means that a person can make a decision, there must be several alternative choices available. Decision making is a thought that is carried out after evaluating several options. In other words, for a person to make a decision there must be alternative options available.

2.5. Definition of Repurchase Intent

Repurchase interest is a consumer's decision to repurchase a product or service based on what is obtained from the same company, make expenses to obtain these goods and services and the tendency to be carried out periodically. The accumulation of consumer experience and knowledge of a brand is a factor that can influence consumers to repurchase the same brand (Hellier et al., 2003).

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2.6. Framework of Thinking

Figure 2. Framework of Thinking

Based on the literature review that has been carried out by researchers, both studies and referring to previous research. So the researchers formulated several research hypotheses as follows:

H1: Store atmosphere has a significant effect on Purchasing Decision at difruts99 cafe Surabaya H2: Store Atmosphere has a significant effect on Repurchase Intention at difruts99 cafe Surabaya H3: Product Variation has a significant effect on Buying Decisions of difruts99 cafe Surabaya H4: Product Variation has a significant effect on Repurchase Intention in difruts99 cafe Surabaya H5: Media Promotion through Instagram has a significant effect on Purchasing Decisions at difruts99 cafe Surabaya

H6: Media Promotion (Instagram) has a significant effect on Repurchase Intention difruts99 cafe Surabaya

H7: Purchase Decision has a significant effect on Repurchase Intention at the fruts99 café Surabaya

3. Research Method

3.1. Research Approach

Research is an activity process that aims to find out something carefully, critically in finding facts by using certain steps (Mulyadi, 2011). This study uses a quantitative approach.

3.2. Object of research

According to Sugiyono (2017), the notion of a research object is a scientific goal to obtain data with specific purposes and uses about something objective, valid and reliable about something (certain variables).

The object of this research is Fruts99 Cafe.

Population 1.

The population in this study were male and female Fruts99 café customers aged 16 to 30 years who had visited the café more than twice and were domiciled in the city of Surabaya .

Sample 2.

The determination of the sample in this study was carried out using a non-probability sampling method with a purposive sampling procedure, this means that the sampling technique will be carried out with certain considerations (Prof Dr Sugiyono, 2009). . Fruts99 café customers in the city of Surabaya who have visited the café have made at least two purchases.

Product Variation

Media Promotion

Repurchase Intention Buying Decision Store

Atmosphere

H1

H4

H5 H2

H3

H6

H7

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3.3. Types and Sources of Data Type of Data

3.

The type of data used in this research is quantitative data. Quantitative data is a type of data that can be measured or calculated directly and is in the form of information or explanation expressed in numbers or in the form of numbers (Prof Dr Sugiyono, 2009)

Data source 4.

The data source used in this research is primary data. Primary data is data that refers to information obtained first-hand by researchers relating to variables of interest for the specific purpose of the study. Primary data sources are individual respondents, focus groups, the internet can also be a primary data source if questionnaires are distributed via the internet (Sekaran, 2011).

Data collection technique 5.

Data collection techniques in this study using a questionnaire or questionnaire. According to Prof Dr Sugiyono (2009) a questionnaire is a data collection technique that is done by giving a set of questions or written statements to the respondent to answer. This questionnaire will contain the respondent's personal data and several questions based on the indicators on each variable used in this study. The questions in this research questionnaire consist of questions that can provide information for the needs of research materials regarding the effect of store atmosphere, product variations and promotional media (IG) on purchasing decisions and repurchase intention of café fruts99 in Surabaya.

4. Results and Discussion

4.1. Research Instrument Testing

In accordance with the hypothesis that has been formulated, the data analysis used in this study is PLS version 3.3.2

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Convergent Validity 1.

Table 1. Outer Loading (Measurment Model)

Store

Atmosph ere X1

Product Variati

ons X2

Media Promoti on through Instagra

m X3

Purch ase Decisi on Y1

Repurch ase Intention

Y2

X1 .1

0.801

X1 .2

0.713

X1 .3

0.835

X1 .4

0.805

X1 .5

0.847

X1 .6

0.813

X1 .7

0.787

X2 .1

0.615

X2 .2

0.850

X2 .3

0.786

X2 .4

0.828

X3 .1

0.871

X3 .2

0.888

X3 .3

0.868

Y1 .1

0.827

Y1 .2

0.804

Y1 .3

0.857

Y1 .4

0.841

Y2 .1

0.918

Y2 .2

0.904

Y2 .3

0.791

Source: data processing with smartPLS 3.3.2

The results of processing using SmartPLS can be seen in table 4.1 that the value of the outer model or the correlation between the construct and the latent variable has fulfilled the convergent validity because all loading factor values in the table above are not below the loading factor limit value of 0.50.

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Discriminant Validity 2.

Table 2. Value of Discriminant Validity (Cross Loading) Store

Atmospher e X1

Product Variation

s X2

Media Promotio n through Instagram

X3

Purchas e Decisio

n Y1

Repurchas e Intention

Y2

X1.

1

0.801 0.478 0.346 0.384 0.352

X1.

2

0.713 0.417 0.531 0.575 0.437

X1.

3

0.835 0.491 0.429 0.448 0.356

X1.

4

0.805 0.426 0.191 0.285 0.156

X1.

5

0.847 0.431 0.251 0.354 0.267

X1.

6

0.813 0.458 0.202 0.317 0.201

X1.

7

0.787 0.456 0.235 0.342 0.258

X2.

1

0.198 0.615 0.366 0.381 0.396

X2.

2

0.532 0.850 0.436 0.545 0.370

X2.

3

0.405 0.786 0.404 0.432 0.276

X2.

4

0.059 0.828 0.473 0.433 0.382

X3.

1

0.354 0.477 0.871 0.628 0.610

X3.

2

0.337 0.456 0.888 0.770 0.689

X3.

3

0.445 0.500 0.868 0.697 0.646

Y1.

1

0.446 0.412 0.662 0.827 0.637

Y1.

2

0.356 0.434 0.659 0.804 0.588

Y1.

3

0.519 0.520 0.669 0.857 0.673

Y1.

4

0.392 0.569 0.679 0.841 0.738

Y2.

1

0.308 0.427 0.662 0.752 0.918

Y2.

2

0.385 0.466 0.713 0.726 0.904

Y2.

3

0.340 0.304 0.559 0.589 0.791

Source: data processing with smartPLS 3.3.2

Based on the data table 2, it can be seen that several loading factor values for each indicator of each construct have a greater value than the others. This shows that latent variables have a better block size than others.

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4.2. Evaluating Reliability and Average Variance Extracted (AVE)

Table 3. Composite Reliability and Average variance Extracted

Composite

Reliability

Average variance Extracted (AVE)

Store Atmosphere (X1) 0.926 0.642

Product Variety (X2) 0.856 0.601

Media Promotion via Instagram (X3)

0.908 0.767

Purchase decision (Y1) 0.900 0.693

Repurchase intention (Y2) 0.905 0.761

Source: Data processing with SmartPLS 3.3.2

Based on table 3 it can be seen that all constructs have met the criteria for being reliable. This is indicated by the Composite Reliability value above 0.60 and AVE above 0.50.

4.3. Testing the Structural Model (Inner Model)

Table 4. R-square Adjusted

Variable R-square Adjusted Purchase Decision

(Y1)

0.679 (67.9%) Repurchase Intention

(Y2)

0.649 (64.9%) Source: Data processing with SmartPLS 3.3.2

. These results indicate that the Purchase Decision variable (Y1) can be influenced by the Store Atmosphere variable (X1), Product Variation (X2) and Promotion Media through Instagram (X3) of 67.9% and the rest is influenced by other factors while Repurchase Intention (Y2) can be influenced by the variable Store Atmosphere (X1), Product Variations (X2) and Media Promotion via Instagram (X3) of 64.9% and the remaining 35.1% influenced by other factors not examined in this study.

4.4. Hypothesis Testing

Hypothesis testing in this study was carried out by doing Bootstrapping. After the bootstrapping testing process is carried out, the output results obtained are as follows.

Figure 3. Path Diagram of the Results After Bootstrapping Analysis Source: Data processed by SmartPLS, 2020

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First Hypothesis Testing (Store atmosphere has a significant effect on Purchasing Decisions) 3.

Table 5. First Hypothesis Test Path

Coefficient

Original Sample

(O)

Sample Mean

(M)

Standard Deviation (STDEV)

t- Statistics

(1O / STDEV1)

PValue

SA (X1) -

> KP (Y1)

0.015 0.153 0.0074 2,048 0.041

Source: Data processed with SmartPLS 3.3.2, 2020

Based on table 5, the test results show that the Store Atmosphere variable (X1) has a significant effect on Purchasing Decisions (Y1) because the t-statistic value is greater than the t-table value, which is 2,048 and the p-value is smaller than 0.05, which is 0.041 . this means that the first hypothesis is accepted.

Second Hypothesis Testing (Product Variation has a significant effect on Purchasing Decisions) 4.

Table 6. Second Hypothesis Test Path

Coefficient

Original Sample

(O)

Sample Mean

(M)

t- Statistics

(1O / STDEV1)

PValue

VP (X2) -

> KP (Y1)

0.138 0.149 0.073 1,889 0.059

Based on table 6, it shows that the Product Variation variable (X2) has no significant effect on Purchasing Decisions (Y1) because the t-statistic value is smaller than the t-table, namely 1.889 and the p-value is greater than 0.05, which is 0.059. This means that the second hypothesis is rejected.

Third Hypothesis Testing (Media Promotion through Instagram has a significant effect on Purchasing 5.

Decisions)

Table 7. Third Hypothesis Test Path

Coefficient

Original Sample

(O)

Sample Mean

(M)

t- Statistics

(1O / STDEV1)

PValue

MP (X3) -

> KP (Y1)

0.661 0.652 0.069 9,564 0.000

Based on table 7, it shows that the Promotion Media variable through Instagram (X3) has a significant effect on Purchasing Decisions (Y1) because the t-statistic value is greater than the t-table, which is 9,564 and the p-value is less than 0.05, which is equal to 0.000. This means that the third hypothesis is accepted.

Fourth Hypothesis Testing (Store Atmosphere has a significant effect on Repurchase Intention) 6.

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Table 8.Fourth Hypothesis Test Path

Coefficient

Original Sample

(O)

Sample Mean

(M)

t- Statistics

(1O / STDEV1)

PValue

SA (X1) -

> RI (Y2)

-0.019 -0.018 0.078 0.242 0.809

Based on table 8, it shows that the Store Atmosphere variable (X1) does not have a significant effect on Repurchase Intention (Y2) because the t-statistic value is smaller than the t-table, which is 0.242 and the p-value is greater than 0.05, which is equal to 0.809. This means that the fourth hypothesis is rejected.

Fifth Hypothesis Testing (Product Variation has a significant effect on Repurchase Intention) 7.

Table 9. Fifth Hypothesis Test Path

Coefficient

Original Sample

(O)

Sample Mean

(M)

t- Statistics

(1O / STDEV1)

PValue

VP (X2) -

> RI (Y2)

-0.029 -0.031 0.086 0.343 0.732

Based on table 9, it shows that the Product Variation variable (X2) has no significant effect on Repurchase Intention (Y2) because the t-statistic value is smaller than the t-table, which is 0.343 and the p-value is greater than 0.05, which is equal to 0.732. This means that the fifth hypothesis is rejected.

Sixth Hypothesis Testing (Media Promotion through Instagram has a significant effect on Repurchase 8.

Intention)

Table 10.Sixth Hypothesis Test Path

Coefficient

Original Sample

(O)

Sample Mean

(M)

t- Statistics

(1O / STDEV1)

PValue

MP (X3) -

> RI (Y2)

0.302 0.292 0.109 2,771 0.006

Based on table 10, it shows that the Promotional Media variable through Instagram (X3) has a significant effect on Repurchase Intention (Y2) because the t-statistic value is greater than the t-table, which is 02,771 and the p-value is smaller than 0.006, which is 0.061. This means that the fifth hypothesis is accepted.

Seventh Hypothesis Testing (Purchase Decision has a significant effect on Repurchase Intention) 9.

Table 11.Seventh Hypothesis Test Path

Coefficient

Original Sample

(O)

Sample Mean

(M)

t- Statistics

(1O / STDEV1)

PValue

KP (Y1) -

> RI (Y2)

0.579 0.591 0.099 5,842 0.000

Based on table 19, it shows that the Purchasing Decision variable (Y1) has a positive and significant effect on Repurchase Intention (Y2) because the t-statistic value is greater than the t-table, which is 5,842 and the p-value is less than 0.05, which is equal to 0.000. This means that the seventh hypothesis is accepted.

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4.5. Indirect Effect Results

Table 12.Results of The Specific Indirect Effect Specific

Indirect Effects

Original Sample

(O)

Sample Mean

(M)

t- Statistics

(1O / STDEV1)

PValue

SA (X1) ->

KP (Y1) ->

RI (Y2)

0.088 0.091 0.049 1,796 0.073

VP (X2) ->

KP (Y1) ->

RI (Y2)

0.080 0.088 0.047 1,719 0.086

MP (X3) ->

KP (Y1) ->

RI (Y2)

0.383 0.384 0.074 5,174 0.000

Based on table 12 above, it can be seen that the results of the indirect effect are as follows:

The table above shows that the Store Atmosphere variable (X1) has no indirect significant effect on 1.

repurchase intention (Y2) through Purchase Decisions (Y1) because the results of the t-statistic are smaller than the t-table, namely 1,796 and the p-value is greater of 0.05 which is equal to 0.073.

The table above shows that the Product Variation variable (X2) does not have a significant indirect effect on 2.

repurchase intention (Y2) through Purchase Outcome (Y1) because the results of the t-statistic are smaller than the t-table, namely 1,719 and the p-value is greater from 0.05 which is equal to 0.086.

The table above shows that the Promotion Media variable (X3) has an indirect significant effect on 3.

repurchase intention (Y2) through Purchase Decisions (Y1) because the results of the t-statistic are greater than the t-table, namely 5,174 and the p-value is less than 0.05, namely amounting to 0,000.

5. Suggestion

Based on the above conclusions, the researcher has several suggestions which are expected to be useful for café Frut99 and future researchers. The following suggestions that researchers can provide include:

Given the results of research that show that Store Atmosphere does not have a significant effect on 1.

consumer repurchase interest, it is better if frut99 designs the café to be more unique and clean in the café as well in order to provide a good image for consumers who first visit Café Frut99 and increase the number of café consumers, because Nowadays, young people nowadays use a lot of social media and review places to be more comfortable gathering or hanging out with friends or family and reco mmending to their closest people if the café is interesting and really enjoys the atmosphere.

Café Frut99 Surabaya offers more variations of its products, namely the size according to the portion with 2.

the price, an attractive appearance and a delicious taste. So that consumers enjoy the dishes that are given and have a distinctive dank value at the frut99 café itself. So that it is more attractive to consumers and this way also builds or forms consumer loyalty at the Fruts99 café and makes purchase decisio ns and repurchase interests.

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