Indonesian Interdisciplinary Journal of Sharia Economics (IIJSE) Vol. 6. No. 3 (2023)
e-ISSN:2621-606X Page: 1820-1837
THE EFFECT OF SEGMENTATION, TARGETING, POSITIONING ON PURCHASING DECISIONS OF BAPERCHIPS BROWNIES CHIPS MSMEs
PRODUCTS Windi Sari1
Sekolah Tinggi Ilmu Manajemen Sukma, Medan, Indonesia [email protected]
Ahmad Albar Tanjung2
Sekolah Tinggi Ilmu Manajemen Sukma, Medan, Indonesia [email protected]
The Effect of Segmentation, Targeting….. 1820 Abstract
The purpose of this study was to find out whether there is an effect of Segmentation, Targeting, and Positioning on purchasing decisions at Baperchips MSMEs Products.
The sample in this study was 100 people. The method used in this study was a quantitative method. This study used primary data, primary data in this study were obtained from respondents’ answers through interviews, observation, and questionnaires. The power analysis used in this study is the Structural Equation Model with Smart PLS. The results of this study indicate that partial Segmentation has a positive but not significant effect on purchasing decisions, Targeting has a positive and significant effect on purchasing decisions, and Positioning has a positive and significant effect on purchasing decisions.
Keywords: Segmentation, Targeting, Positioning, Purchase Decision
The Effect of Segmentation, Targeting….. 1821 INTRODUCTION
Various conditions and changes that occur in the business environment will have an impact on increasing competition. Competition in the world is increasingly competitive, this competition can be seen from the increasing number of products launched by companies to be able to maintain their existence in the business world. Conditions require companies to be more creative and innovative by offering something of more value than competitors do. So the company must re-evaluate the marketing strategy used (Anjelisa et al., 2018). Marketing activities carried out by each company are based on the marketing strategy set to achieve the intended target. In determining the right target, it is necessary to research and study the segmentation, target and position of the behavior and habits of the buyer. An understanding of consumer behavior must also be considered because in understanding the different characteristics. The high competition in the business world demands a competitive advantage that must be possessed by every company in order to remain competitive. One of the competitive advantages that must be owned by a company is the right marketing strategy (Farida & Selviana, 2019).
Baperchips is the pioneer of the first brownie chips in Sumatra. Processed with selected ingredients and packaged using standard production equipment, now Baperchips are a special and favorite snack in Deli Serdang district and Medan city. The digital economy is very much promoted by the government, which is the application of the new economy concept which specifically leads to transactions of goods and services through internet media or known as e-commerce (Tanjung, Syafii, et al., 2022) The marketing method used by MSMEs uses the STP (Segmentation, Targeting, Positioning) method.
Segmentation is an activity to make the market relatively more homogeneous, namely by grouping market shares, so that we can differentiate specifically between one another. The advantages of market segmentation in marketing include being able to design products that are more responsive to market needs, analyze the market more deeply, find opportunities, master competitive positions to determine effective and efficient communication strategies (Sudarso, 2022). Targeting or setting a target market is the next stage of segmentation analysis, Targeting is a matter of how to choose, select, and reach the market. The advantage of applying targeting is that it allows companies to know who is being analyzed to help understand the actual potential of consumers, allows changes to assess potential
The Effect of Segmentation, Targeting….. 1822 demand for their products, identifies products that are competitors in specific markets so that it allows companies to place their products on the market (Sudarso, 2022). Positioning concerns how the company builds customer trust and confidence. Positioning refers to products, brands and companies that must be clearly positioned in the minds of customers where the goal is for products, brands and companies to have a clear identity in the minds of customers (Sudarso, 2022). Purchasing decision is the stage of the decision process where the consumer actually buys a product (Ulfa Yukhanita, 2021).
Research conducted by (Muh Iqbal Burhan, 2019) entitled Analysis of determining segmentation, targets and positions on sales levels at Cafe Paputo in Parepare City states the results of the study show that Segmentation has a positive but not significant effect on sales levels, Target has an insignificant positive effect on sales levels, Positioning which has a positive influence that is not significant to the level of sales. Research conducted by (Pomantow et al., 2019) entitled Analysis of determining segmentation, targets and positions on sales levels at Cafe Paputo in Parepare City states the results of the study show that Segmentation has a positive but not significant effect on sales levels, Target has an insignificant positive effect on sales levels, Positioning which has a positive influence that is not significant to the level of sales.
Research conducted by (Sudarso, 2022) entitled Analysis of the Implementation of Segmenting, Targeting, Positioning on Purchasing Decisions at Teenager of Sidoarjo Stores that Segmentation has a significant effect on purchasing decisions and has a positive value, Targeting has a positive and significant effect on purchasing decisions, Positioning is not significant on purchasing decisions. Research conducted by (Imansyah et al., 2021) entitled The Effect of Segmenting, Targeting, Positioning (STP) and Marketing Strategy on Consumer Purchase Decisions at PT Jasindo states that Segmenting has a significant influence on customer purchasing decisions, Targeting has a significant influence on customer purchasing decisions. Positioning has a significant influence on customer purchasing decisions.
Research conducted by (Putra & Sismanto, 2021) entitled The Influence of Segmenting, Targeting, and Positioning Strategies on Purchase Decisions for Samsung Mobile Phones in Pagar Dewa Village, Bengkulu City. Stating that segmenting has an influence on purchasing decisions. Targeting Have an influence on purchasing decisions.
The Effect of Segmentation, Targeting….. 1823 Positioning has a significant influence on purchasing decisions. This research was conducted at Baperchips MSMEs engaged in the field of food products. MSMEs are one of the driving forces of the Indonesian economy today because Micro, Small and Medium Enterprises (MSMEs) have a very large contribution in supporting the Indonesian economy (Tanjung, Lubis, et al., 2022). Based on the background found by researchers on the basis of phenomena that occur in the field, a study was proposed entitled “The Influence of Segmentation, Targeting, Positioning on Purchase Decisions for MSMEs Kripik Brownies Baperchips Products”. The formulation of the problem in this study is whether Segmentation, Targeting, Positioning influences the purchasing decision of Baperchips brownie chip MSME products. The purpose of this study was to determine the effect of segmentation, targeting, positioning on purchasing decisions for MSMEs Kripik Brownies Baperchips products.
REVIEW OF LITERATURE Segmentation
Segmentation is dividing a market into groups of buyers different desires, characteristics, or behaviors (Mujahidin & Khoirianingrum, 2019) segmentation indicators are as follows: a) Geographic Segmentation; b) Demographic Segmentation; c) Psychographic Segmentation; d) behavioral segmentation.
Targeting
Targeting is a process evaluate and select one or several market segments that are considered the most attractive to be served by the program company specific marketing. It can be concluded that targeting is the process of determining which market segment to target worked on by the company (Mega et al., 2022). Targeting indicators are as follows:
a) Segment Size and Growth Potential; b) Segment Characteristics; c) The fit between product and market
Positioning
Positioning is the way the company embed the image, perception and imagination of the products offered to consumers through the communication process (Mujahidin &
Khoirianingrum, 2019). Positioning indicators are as follows: a) Based on attribute; b)
The Effect of Segmentation, Targeting….. 1824 Based on Benefits; c) Based on Competitor; d) Based on Product Category; e) Based on Price; f) Based on Usage
Purchase Decision
Purchase decision that is a component of consumer behavior, which Consumer behavior is the study of what a person or group is like in determining, buying, consume, as well as what kind of products, ideas or experiences to satisfy consumers (Mega et al., 2022). Purchase Decision Indicators are as follows: a) Felt need; b) Activities before purchase; c) Wearing behavior; d) Post purchase behavior
RESEARCH METHOD
This research was conducted at Baperchips MSMEs which are located in Percut Sei Tuan District, Deli Serdang Regency, North Sumatra. The dependent variable in this study is the Purchase Decision. While the independent variables in this study are segmentation, targeting, and positioning. The time for conducting this research is from April to December 2022. This study aims to determine the level of significance and the relationship between the independent and dependent variables. The method used in this study is a quantitative method. This study used primary data, primary data in this study were obtained from respondents' answers through interviews, observation and questionnaires (questionnaire).
Data analysis is the process and search for data by compiling data systematically or in detail from the results of interviews, observations (Fiandi & Tanjung, 2022). The method used in this study is descriptive, quantitative, in addition to the research model used in this study, using the SmartPLS application with SEM analysis.
Equation Model in PLS:
51 = β1£1+ β2£2 + β3£3 + C1
(Purchase Decision = β1 Segmentation + β2 Targeting + β3 Positioning + Epsilon1) Information:
(ETA) : Endogenous latent variable
(BETA) : Direct relationship of endogenous variables to other endogens (KSI) : Exogenous latent variable
(ZETA) : Errors in the equation, namely between exogenous/ endogenous variables
The Effect of Segmentation, Targeting….. 1825 RESULTS AND DISCUSSION
Validity Test
The research results can be said to be valid if the data collected and the data studied have similarities, then the validity test used are:
Loading Factor
The loading factor is the magnitude of the correlation between the indicators in each latent. A study can be said to be valid if the value of the factor loading table is > 0.7 and vice versa, if the value of the factor loading table is <0.7 then a study can be said to be invalid.
Average Variance Extracted (AVE)
AVE is a measure of the number of variants of the indicators extracted by the variables that have been formed. The assessment of the AVE is by looking at the AVE table, the AVE value can be said to be valid if the value contained in the table is > 0.5, then it can be said that a study is valid and vice versa, if the value in the AVE table is
<0.5, it can be said that the research is not valid.
Cross Loading
Cross Loading is comparing the correlation between the indicator and the constructor as well as the blocks. A study can be tested valid if the Cross Loading value is > 0.7 for each change.
Reliability Test
The reliability test is a method of predicting the consistency of a study, meaning that if a study is measured continuously or many times, the results will remain the same (S.
Tanjung, A.A. and Muliyani, 2021).
Cronbach Alpha
A study can be said to be reliable if the results of the research carried out can be trusted, consistent or do not change. Meanwhile, to measure the value of reliability, namely by looking at Cronbach alpha> 0.6 then a study can be said to be reliable, and if Cronbach alpha <0.6 then a study can be said to be unreliable.
Composite Reliability
Composite Reliability is a measure of the consistency of each indicator on a variable that aims to show the degree of the variable that has been created. The
The Effect of Segmentation, Targeting….. 1826 measurement of whether or not the composite reliability is valid is by looking at the composite reliability table, if the value is > 0.7 then the research can be said to be valid.
Respondent Characteristics
Respondent characteristics are the identity that will become the research sample.
The sample in this study was 100 consumers from MSMEs Brownies Baperchips Chips who had filled out a questionnaire based on gender and age. The following is data from the characteristics of the respondents as follows.
Tabel 1
Respondent Characteristic Based on Age
In the table above it can be seen that the largest number of respondents were 18-30 years old with 92 people, while 9 people were 31-39 years old, and 6 people >40 years old.
Tabel 2
Respondent Characteristic Based on Gender
No Gender Total
1 Male 38
2 Female 62
Total 100
From the data above it can be seen that the number of female respondents is greater than that of male respondents
Recapitulation of Respondents Answers Variable Segmentation Tabel 3
Recapitulation of Respondent Segmentation Answers
No Age Total
1 18-30 84
2 31-39 9
3 > 40 7
Total 100
No Statement Strongly Agree Agree Neutral Disagree Strongly Disagree
F % F % F % F % F %
1 Segmentation 1 32 32% 42 42% 20 20% 5 5% 1 1%
2 Segmentation 2 28 28% 38 38% 30 30% 4 4% 0 0%
3 Segmentation 3 29 29% 51 51% 17 17% 3 3% 0 0%
The Effect of Segmentation, Targeting….. 1827 In the table above it is known that the highest answer to the respondent’s answer on the agree answer scale with a percentage of 44% with the highest answer located in statement number 3 with a percentage of 51% indicates that the company is able to implement segmentation 3 well, while respondents who choose the answer are very agree 30%, disagree 4% and strongly disagree as much as 0%
Recapitulation of Respondents Answers Variable Targeting Tabel 4
Recapitulation of Respondents Answers Variable Targeting
No Statement
Strongly
Agree Agree Neutral Disagree Strongly Disagree
F % F % F % F F % F
1 Target 1 19 19% 43 43% 35 35% 3 3% 0 0%
2 Target 2 26 26% 48 48% 25 25% 1 1% 0 0%
3 Target 3 23 23% 51 51% 26 26% 0 0% 0 0%
In the table above it is known that the highest answer to the respondent’s answer on the answer scale agrees with a percentage of 47% with the highest answer located in statement number 3 with a percentage of 51% indicating that the company is able to implement Target 3 well, while respondents who choose the answer are very agree 23%, disagree 1% and strongly disagree 0%.
Recapitulation of Respondents Answers Variable Positioning Tabel 5
Recapitulation of Respondents Answers Variable Positioning No Statement
Strongly
Agree Agree Neutral Disagree Strongly Disagree
F % F % F % F F % F
1 1st Position 24 24% 56 56% 18 18% 1 1% 1 1%
2 2nd Position 27 27% 42 42% 27 27% 3 3% 1 1%
3 3rd Position 22 22% 44 44% 31 31% 3 3% 0 0%
4 4th Position 19 19% 48 48% 32 32% 1 1% 0 0%
5 5th Position 20 20% 53 53% 26 26% 1 1% 0 0%
6 6th Position 21 21% 53 53% 25 25% 1 1% 0 0%
7 7th Position 19 19% 54 54% 24 24% 3 3% 0 0%
The Effect of Segmentation, Targeting….. 1828 In the table above it is known that the highest answer to the respondent’s answer on the answer scale agrees with a percentage of 50% with the highest answer located in statement number 1 with a percentage of 56% this shows that the company is able to implement Position 1 properly while the respondent who chooses the answer strongly agrees 22%, disagree 2% and strongly disagree 0%
Recapitulation of Respondents Answers Variable Positioning Tabel 6
Recapitulation of Respondents Answers Variable Purchase Decision
No Statement
Strongly
Agree Agree Neutral Disagree Strongly Disagree
F % F % F % F F % F
1
Purchase
Decision 1 36 36% 45 45% 18 18% 1 1% 0 0%
2
Purchase
Decision 2 28 28% 50 50% 17 17% 4 4% 1 1%
3
Purchase
Decision 3 23 23% 48 48% 21 21% 7 7% 1 1%
4
Purchase
Decision 4 26 26% 39 39% 32 32% 3 3% 0 0%
In the table above it is known that the highest answer to the respondent’s answer on the agree answer scale with a percentage of 46% with the highest answer located in statement number 2 with a percentage of 50% indicates that the company is able to apply Position 1 well, while respondents who choose the answer are very agree 28%, disagree 4%
and strongly disagree 1%
Validity and Reliability Test Results
In this case the validity test is used to measure the accuracy of the instrument used during the study. The results of the validity test from this study are as follows:
The Effect of Segmentation, Targeting….. 1829 Loading Factor
Figure 1
Loading Factor Result
From the picture above it can be seen that the average Loading Factor value is ≥ 0.7 for each indicator on the latent variable, so it can be concluded that the research questionnaire is valid. Likewise with table 7 below, in the figure the Loading Factor value
≥ 0.7
Tabel 7
Loading Factor Result
Indicator Segmentation Targeting Positioning Purchase Decision Information
S1 0.773 Valid
S2 0.859 Valid
S3 0.875 Valid
T1 0.896 Valid
T2 0.883 Valid
T3 0.876 Valid
P1 0.847 Valid
P2 0.802 Valid
P3 0.884 Valid
P4 0.880 Valid
P5 0.839 Valid
P6 0.828 Valid
P8 0.873 Valid
KP1 0.758 Valid
KP2 0.824 Valid
KP3 0.784 Valid
KP4 0.895 Valid
The Effect of Segmentation, Targeting….. 1830 Average Variance Extracted (AVE)
Tabel 8
Average Variance Extracted (AVE) Result
Indicators AVE
Segmentation 0.701
Targeting 0.783
Positioning 0.724
Purchase Decision 0.667
In table 8 it can be seen that the average value of the extracted variance or AVE is ≥ 0.5 for each latent variable indicator. Therefore, this research can be declared valid
Cross Loading
Latent indicators also need to be tested with discriminant validity by looking at the Cross Loading table.
Tabel 9
Cross Loading Result
An indicator can be declared valid if it has the highest Cross Loading value on the intended latent variable compared to Cross Loading on other variable indicators. The table above shows that Cross Loading for indicators on the Positioning variable has a higher construct than the other constructs. Thus, the value of the indicator on the Positioning variable is better than the indicator value on the other variables.
The Effect of Segmentation, Targeting….. 1831 The reliability test is used to test and guarantee the instrument from the statements that have been used, and see the stability, consistency and ability if used repeatedly.
Cronbach Alpha
Tabel 10
Cronbach Alpha Result
From the table above it can be seen that the value of the Cronbach Alpha of each indicator on the latent variable is ≥ 0.6 this shows that the questionnaire in this study is reliable.
Composite Reliability
Tabel 11
Composite Reliability Result
Indicators Composite Reliability Purchase Decision 0.889
Positioning 0.948 Segmentation 0.875
Targeting 0.915
From the table above it can be seen that the value of composite reliability shows a value of ≥ 0.7, it can be concluded that the research questionnaire is reliable.
Structural Equaiton Model (SEM) Test Results
Testing on this SEM equation model is to determine the effect of Segmentation, Target and Position on Purchasing Decisions in Baperchips MSMEs. The following are the results of the SEM equation model for each variable
Tabel 12
Structural Equation Model (SEM) Test Results
The Effect of Segmentation, Targeting….. 1832 The table above shows that the SEM equation is as follows:
51 = 0,037£1 + 0,378£2 + 0,455£3
In the model equation above, it can be obtained that the value of the free variable Segmentation is 0.037, the value of the independent variable Targeting is 0.378 while the value of the independent variable Positioning is 0.455. So, if the independent variable is positive, it means that the purchasing decision at Baperchips UMKM can be influenced by Segmentation, Targeting and Positioning.
Hypothesis Test
Determinant Coefficient (R2)
Testing the determinant coefficient aims to measure the value of the variable Segmentation, targeting Positioning in explaining the Purchasing Decision variable, this value can be seen as follows in the table below:
Tabel 13
Determinant Coefficient Result (R2)
In the table above, a determination coefficient of 0.709 or 70.9% is obtained. This indicates that Segmentation, Targeting, Positioning is able to explain the purchasing decision variables at Baperchips SMEs, while the remaining 29.1% is explained by other variables not examined in this study.
Partial Test (T)
The partial test is used to see the effect of the variables Segmentation, targeting, Positioning on Purchase Decisions partially, in the results of the calculation of the T test, the statistical test value can change because the number of samples is below 400, while the results of the partial test of this study are as follows:
If tcount ≤ ttable then H0 is accepted, H1 is rejected, meaning that this research has no effect partially
If tcount ≥ ttable then H0 is rejected, H1 is accepted, meaning that this research partially effect
The Effect of Segmentation, Targeting….. 1833 Tabel 14
Partial Test Result
Indicators T Statistic P Value Segmentation => Purchase Decision 0,336 0,738
Targeting => Purchase Decision 2,603 0,011 Positioning => Purchase Decision 2,986 0,004
Based on the table above it can be concluded that: a) The tcount value for the Segmentation variable is 0.336 ≤ ttable 1.983 and is assessed for significance or P Value 0.738 ≥ 0.5 alpha (5%), then H0 is accepted, H1 is rejected. Thus, partially Segmentation has a positive but not significant effect on purchasing decisions; b) The tcount value for the targeting variable is 2.603 ≥ ttable 1.983 and is assessed for significance or p value 0.011 ≤ 0.5 alpha (5%), then H0 is rejected, H1 is accepted. Thus, partially Targeting has a positive and significant effect on purchasing decisions.
The tcount value for the Positioning variable is 2.986 ≥ ttable 1.983 and is assessed for significance or p Value 0.004 ≤ 0.5 alpha (5%), then H0 is rejected, H1 is accepted. Thus, partially Positioning has a positive and significant effect on purchasing decisions
Determinant Coefficient Test Results
Based on the results of the gem hypothesis, it shows that the Segmentation, Targeting, Positioning variables are able to explain what is in MSMEs Baperchips. This is evidenced by the determination value or R2 obtained of 0.709 or 70.9%, while the rest is explained by other variables not examined in this study. This is an example of brand image, product quality, price and so on.
The Effect of Segmentation on Purchasing Decisions in Baperchips MSMEs
Based on the results of statistical calculations, it is known that the latent variable Segmentation partially has a positive but not significant effect on purchasing decisions. It is proven that the Segmentation variable is 0.336 ≤ ttable 1.983 and is assessed for significance or P Value 0.738 ≥ 0.5 alpha (5%). The results of this study are in line with the theory of marketing strategy which shows that segmentation, targeting and positioning have a positive and significant effect, while the results of this estimate are in accordance with research conducted by (Amelia, 2020) which states that Segmenting has a positive but not significant effect on purchasing decisions. The results of this estimate are also in
The Effect of Segmentation, Targeting….. 1834 accordance with the research conducted by (Ulfa Yukhanita, 2021) which states that Segmentation has a positive but not significant effect on the purchase decision of Rabbani hijab. However, this estimate is not in line with research conducted by (Putra & Sismanto, 2021) which states that Segmentation has a positive and significant effect on the decision to purchase Samsung mobile phones in the Pagar Dewa sub-district, Bengkulu city.
The Effect of Targeting on Purchase Decisions in Baperchips MSMEs
Based on the results of statistical calculations, it is known that the latent variable Targeting partially has a positive and significant effect on purchasing decisions. It is proven that the Targeting variable is 2.603 ≥ ttable 1.983 and is assessed for significance or p Value 0.011 ≤ 0.5 alpha (5%). The results of this study are in line with the theory of marketing strategy which shows that segmentation, targeting and positioning have a positive and significant effect. The results of this estimate are in accordance with research conducted by (Yanti & Saraswati, 2020) which states Targeting has a positive and significant effect on purchasing decisions. The results of this estimate are also in accordance with the research conducted by (Farida & Selviana, 2019) which states that Targeting has a positive and significant effect on purchasing decisions. However, this estimate is not in line with research conducted by (Mega et al., 2022) which states that Targeting has no positive and significant effect on purchasing decisions on Respiro products in Madiun.
The Effect of Positioning on Purchasing Decisions in Baperchips MSMEs
Based on the results of statistical calculations, it is known that positioning latent variables partially have a positive and significant effect on purchasing decisions. It is proved that the Positioning variable is 2.986 ≥ t table 1.983 and is assessed for significance or p Value 0.004 ≤ 0.5 alpha (5%). The results of this study are in line with the theory of marketing strategy which shows that segmentation, targeting and positioning have a positive and significant effect. The results of this estimate are in accordance with research conducted by (Imansyah et al., 2021) which states that Positioning has a positive and significant effect on purchasing decisions at PT Jasindo. The results of this estimate are also in accordance with the research conducted by (Anjelisa et al., 2018) which states that Positioning has a positive and significant effect on purchasing decisions for BP-Smart Protection products at AJB Bumiputera Ratulangi Branch Manado. However, this estimate
The Effect of Segmentation, Targeting….. 1835 is not in line with research conducted by (Pomantow et al., 2019) which states that Positioning has no positive and significant effect on purchasing decisions on the Maxx Coffee product at the Aryaduta Manado hotel.
CONCLUSION
From the research and discussion that has been discussed, it can be concluded that the results of this study indicate that the latent variables Segmentation, Targeting, Positioning are able to explain variations in purchasing decisions at Baperchips UMKM.
With proof of the value of determination (R2) obtained by 0.709 or 70.9% and the remaining 29.1% is explained in other variables. The results of the hypothesis show that Segmentation has a positive but not significant effect on purchasing decisions on Baperchips SMEs with a value of 0.336 ≤ ttable 1.983 and is assessed for significance or P Value 0.738 ≥ 0.5 alpha (5%). Meanwhile, the targeting variable has a positive and significant impact on purchasing decisions in UMKM Baperchips with a value of 2.603 ≥ ttable 1.983 and is assessed for significance or p value 0.011 ≤ 0.5 alpha (5%). And the Positioning variable has a positive and significant effect on purchasing decisions in UMKM Baperchips with a value of 2.986 ≥ ttable 1.983 and is assessed for significance or p Value 0.004 ≤ 0.5 alpha (5%).
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