The Influence of Brand Ambassador, Country of Origin, and Brand Image on Purchase Decisions of Skincare Products
Puteri Eka Wardani1*, Albert Kriestian Novi Adhi Nugraha1
1 Faculty of Economics and Business, Universitas Kristen Satya Wacana, Salatiga, Indonesia
*Corresponding author:[email protected] Accepted: 15 September 2022 | Published: 1 October 2022
DOI:https://doi.org/10.55057/aje.2022.3.3.8
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Abstract: Along with the development of the times, human needs are increasingly complex.
Not only the need for clothing, food, and shelter, but now humans also need various things to support their appearance. One of them is skincare or beauty products. Different beauty products domestically and abroad are now being spread on the market. Various brands are competing to get consumers. Using foreign celebrities as brand ambassadors is also one of the company's strategies to increase the popularity of its products. The country of origin and brand image is often used to determine which products to buy. This study aims to assess the influence of brand ambassadors, country of origin, and brand image on purchase decisions of beauty products. The current study tests the proposed model in two different product settings, Nature Republic and Ponds. The sample for each product was 150 respondents, and data collection utilized a questionnaire with a Likert scale. Subsequently, the current study generates the findings through multiple analysis test techniques. Brand ambassador and country of origin significantly affect purchase decisions for Nature Republic products. Meanwhile, brand ambassadors and country of origin have no significant effect on the purchase decisions of Pond's products. The results for the Brand Image variable are the same, significantly affecting purchase decisions for the Nature Republic and Pond's products.
Keywords: brand ambassador, country of origin, brand image, purchase intentions
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1. Introduction
Background
Along with the development of science and technology, human needs are becoming increasingly complex. Not only the fulfilment of basic needs such as clothing, food, and shelter but also the need for a better physical appearance. The latter is even a priority, especially for women. One of the needs to support physical appearance is skin care products. Indonesia is a country with a reasonably high growth rate in the cosmetics industry. Various beauty brands are available in the market and compete with each other. The potential of the cosmetic industry in Indonesia is very promising. The growth of Indonesian cosmetics is considered very fast in the Asian region, with a compound annual growth rate of Compound Annual Growth Rate from 2013-2018, which is more than 9%. While China is 9% and India is below 7% (Rahmani, 2018). One of Indonesia's cosmetic products with a lot of demand is Pond's. Ponds is a cosmetic product with various creams, serums, toners, and powders. Nature Republic is one of the products that is well known and has many enthusiasts in Indonesia.
For a long time, Pond's has used brand ambassadors as its promotional media. Many Indonesian celebrities have become brand ambassadors for this product, such as Bunga Citra Lestari, Raisa, Sandra Dewi, and Maudy Ayunda. Brand Ambassador is a global marketing communication strategy for cosmetic companies to increase consumer interest in determining their purchase decisions (Darwati & Yulianto, 2019). Now, Pond's brand ambassador has changed; Red Velvet's Wendy is the new brand ambassador for Pond's. The use of South Korean celebrities as brand ambassadors for Indonesian products considers the influence of Korean culture in the cosmetics and skin care industry that is currently developing. In recent years, South Korean culture has influenced many countries and has become a trend in many countries, including Indonesia. Various Korean products are starting to enter the Indonesian market, ranging from the entertainment industry, such as Kpop, and drama/film, to the beauty industry, such as skin care.
South Korea is one of the most targeted countries by consumers in several countries because of its skincare products that are in demand by Indonesian consumers. South Korea is famous for its beauty products that can give white and glowing skin results. Nature Republic is one of the Korean products with many enthusiasts in Indonesia. The brand uses various top celebrities as its brand ambassadors. In 2013, EXO became Nature Republic's flagship brand ambassador.
After breaking up with EXO, Nature Republic's brand ambassador changed to NCT 127, a rising South Korean boy group. NCT 127 will be Nature Republic's brand ambassador for the next ten years.
One of the things that also affect consumer buying interest is the country of origin. In international marketing, consumer stereotyping of foreign-made products is very common.
Stereotyping is a person's view of something based on certain aspects. This view usually refers to the country of origin. One of the things that affect consumer buying interest is the country of origin. Consumers use the country of origin as one of the reasons for making purchasing decisions because the product's country of origin can depict the product image (Ghaizani et al., 2018). South Korean skincare products have their privileges for Indonesian consumers.
In comparison, many Indonesian products have brand ambassadors from South Korea or other countries, while South Korean products, such as the Nature Republic, choose celebrities from their own countries as their brand ambassadors. The choice shows the trust of the South Korean manufacturers towards its celebrities to represent a product. Generally, the country of origin influences how people perceive a product's quality, so consumers utilize the country of origin to evaluate the effect (Nayumi & Sitinjak, 2020).
A well-known and trusted brand is an invaluable asset (Rahmawaty, 2014). The brand image describes the extrinsic nature of a product or service, including how a brand tries to meet customers' psychological or social needs. A brand with a positive image will make consumers like a product with a relevant brand in the future. Companies that build a good brand image will efficiently and effectively promote to consumers and have a high opportunity to improve consumer purchasing decisions. Still, if a company cannot build a good brand image for its products, it will not be easy to sell in the market. Pond's Indonesia and the Nature Republic are both engaged in the beauty sector. Each product has its mainstay product that is in demand by consumers. Consumers use the country of origin to infer product image (Ghaizani et al., 2018).
In addition, brands also influence consumer purchasing decisions. As a result, purchasing decisions are an integrated process combining knowledge to evaluate two or more behavioral alternatives and choose one (Musay, 2013). The current study proposes a model that integrates
three predictors of skin care product purchasing decisions, namely brand ambassador, country of origin, and brand image.
2. Literature Review
Purchase Decision
The buying decision-making process involves consistent and thoughtful actions to meet needs (Lailliya, 2020). Purchase decisions made by a consumer are the results produced after the consumer has analyzed various alternatives or information from a product or service.
Brand Ambassador
One of the most effective marketing strategies today is to use a brand ambassador. A brand ambassador is a term used by marketers for someone who a company or organization employs to promote the company's products or services in an activity known as branding (Mardiana, 2019). A brand ambassador is a tool used by companies to promote their products. The company makes this effort to influence or invite consumers by using celebrities as icons to present the best image of a product so that consumers can be interested in using the product (Nursiti, 2019). Because consumers have a strong positive attitude toward brand ambassadors, they also have the potential to have positive attitudes toward the effects associated with brand ambassadors. The first hypothesis in the model is as follows:
H1: Brand ambassador affects purchase decisions of skin care products.
Country of Origin
In international marketing, certainly no stranger to the term country of origin. Country of origin is the country of origin where a brand is produced. Generally, in a product, there is the word
"made in" on the product packaging to tell which country has the effect. Country of origin is the extent to which information about the country of origin affects consumer assessments of a product (Azhari, 2019). Customers can summarize product quality attributes based on country of origin cues. Consumers will find it easier to make purchasing decisions on products that have a favorable country of origin. Therefore, customers evaluate the product positively when the product has a strong relationship with the country's good image. Thus, this study proposes a second hypothesis:
H2: Country of origin affects purchase decisions of skin care products.
Brand Image
According to Kotler (2012), brand image is a consumer's understanding of a brand, consumer confidence in a brand, and how consumers perceive a brand. According to Kotler and Keller (2013: 256), brand image is the perception and belief made by consumers, which is reflected in associations that occur in consumers' memories. Brand image has meaning to the image of a product in consumers' minds (Supriyadi et al., 2017). If consumers do not have experience with a product, they tend to choose products with brands they like or are well known to make purchasing decisions on that brand. Thus, this study proposes a third hypothesis:
H3: Brand image affects purchase decisions of skin care products.
Previous research has shown that brand ambassadors, country of origin, and brand image positively affect purchase decisions (Junaidi Sagir et al., 2021; Nursiti, 2019; Soraya & Siregar, 2021). Meanwhile, in other studies, brand ambassador, country of origin, and brand image did
not affect purchase decisions for a product due to other factors consumers researchers did not consider yet (Lestari, 2021; Mahmudah & Tiarawati, 2018; Mardiana, 2019). Therefore, the current study integrates three hypotheses into the research model as follows:
3. Research Method
Types of research
This research uses quantitative research. According to Sugiyono (2015:23), quantitative data is data in the form of numbers or data that is scored or scored. Quantitative data tends to be analyzed by statistical techniques (AD Rizqi, 2017). The data processed and analyzed in this study used primary data types. The primary data is obtained from the questionnaires filled out by research respondents through Google Forms distributed to consumers who use skin care products, Pond (COO USA), and the Nature Republic (COO South Korea).
Population and Sample
The population combines all elements with the same characteristics, including the population used for research questions. The population in this study are consumers who have purchased and used skincare products, both Ponds and the Nature Republic. This study aims to compare the two products so that the respondents needed are around 300 respondents, 150 respondents for Pond's products and 150 respondents for Nature Republic products. The respondents had previous experience in using the product. Table 1 shows that most of the respondents were female, and the majority are in the age category 16-25 years, with their occupations as students (58%) and private employees (34.7%). The pattern is similar for the respondents who evaluate the Nature Republic and Ponds.
Brand Ambassador
(X1)
H1
Country of Origin (X2)
H2
Brand Image (X3)
H3
Purchase Decision
(Y)
Table 1: Respondent profile
No Variable Category The Nature Republic Pond's
Frequency % Frequency %
1. Jenis Kelamin
Female Male
142 8
94,6 5,4
141 9
94 6
2. Age
16-20 21-25 26-30
20 120 10
13,6 82,1 4,3
65 80 5
42,8 53,5 3,8
3. Occupation
Student
Private employee Government employee Housewife
Entrepreneur Other
102 40 0 6 2
68 26,7 0 4 1,3
87 52 1 2 5 3
58 34,7 0,7 1,3 3,3 2 Data Analysis
The current study applied multiple linear regression data analysis techniques to analyze the collected primary data. Before the analysis, the collected data must meet the requirements for the classical assumption of regression analysis followed by a validity and reliability test. The procedure applies degrees of freedom at a confidence level of 95% and a significant level of 5%. Subsequently, the hypothesis testing uses the rule of thumb that an independent variable significantly affects the dependent variable when the value (sig) obtained is less than alpha (a)
= 0.05. The classical assumption test consists of normality, multicollinearity, heteroscedasticity, and linearity.
4. Findings
Validity and Reliability Test
Given the r-table of n = 35 is 0.3340, and the r-value for all variables is > r-table, all variables (i.e., the brand ambassador, country of origin, brand image, and purchase decision) for the Nature Republic are valid. In addition, all the variables for Nature Republic have Cronbach's Alpha value of more than 0.6. Table 2 indicate that all the variables for the Nature Republic are reliable.
Table 2: Validity and Reliability Test (Nature Republic)
Validity Reliability
Variable Q r-value Conclusion Cronbach's
Alpha Conclusion Brand Ambassador Q1
Q2 Q3 Q4
0.483 0.627 0.443 0.644
Valid Valid Valid Valid
0.601 Reliable
Country of Origin Q1 Q2 Q3 Q4 Q5 Q6
0.642 0.526 0.561 0.765 0.653 0.709
Valid Valid Valid Valid Valid Valid
0.767 Reliable
Brand Image Q1
Q2
0.674 0.565
Valid
Valid 0.753 Reliable
Validity Reliability Variable Q r-value Conclusion Cronbach's
Alpha Conclusion Q3 0.812 Valid
Purchase Decision Q1 Q2 Q3 Q4
0.561 0.765 0.653 0.579
Valid Valid Valid Valid
0.758
Reliable Source: primary data, processed (2022)
The same validity and reliability test also applied to Pond's product. Based on Table 3, brand ambassador, country of origin, brand image, and purchase decision are valid and reliable. Using the r-table of n = 35 is 0.3340, and the r-values for all variables are> r-table. The Cronbach's Alpha value indicates that each variable has a value > 0.6.
Table 3: Validity and Reliability Test (Ponds)
Validity Reliability
Variable Q r-value Conclusion Cronbach's
Alpha Conclusion Brand Ambassador Q1
Q2 Q3 Q4
0.425 0.432 0.337 0.387
Valid Valid Valid Valid
0.832 Reliable
Country of Origin Q1 Q2 Q3 Q4 Q5 Q6
0.600 0.578 0.709 0.694 0.721 0.659
Valid Valid Valid Valid Valid Valid
0.890
Reliable
Brand Image Q1
Q2 Q3
0.542 0.446 0.551
Valid Valid Valid
0.657 Reliable Purchase Decision Q1
Q2 Q3 Q4
0.608 0.507 0.542 0.621
Valid Valid Valid Valid
0.859 Reliable Source: primary data, processed (2022)
Classical Assumption Test
Table 4 shows the normality test results for the Nature Republic data. The result of sig. (2- tailed) is 0.200, which means > 0.05. Therefore, the results indicate that Nature Republica follows normal data distribution.
Table 4: Normality Test (Nature Republic)
One-Sample Kolmogorov Smirnov Test
Unstandardized Residual
N 150
Normal Parametersa,b Mean .0000000
Std. Deviation 1.03386172
Most Extreme Differences Absolute .039
Positive .029
Negative -.039
Test Statistic .039
Asymp. Sig. (2-tailed) .200c,d
Source: primary data, processed (2022)
The same procedure for the normality test also applies to Pond's data. Based on Pond's data normality test results in Table 5, the significant value (2-tailed) is 0.055 or more than 0.05. The results show that Pond's data follows normal data distribution.
Table 5: Normality Test (Pond’s)
One-Sample Kolmogorov Smirnov Test
Unstandardized Residual
N 150
Normal Parametersa,b Mean .0000000
Std. Deviation 1.96858989 Most Extreme Differences Absolute .072
Positive .052
Negative -.072
Test Statistic .072
Asymp. Sig. (2-tailed) .055c
Source: primary data, processed (2022)
Based on Table 6, the results of the multicollinearity test to the Nature Republic data show that the tolerance values for a brand ambassador, country of origin, and brand image are 0.743, 0.558, and 0.521, respectively. In addition, the VIF value is 1.346, 1.792, and 1.920 for the same variables, respectively. Given the tolerance values for all variables are more than 0.10 and the VIF values are less than 10, the results indicate no issue of multicollinearity in the Nature Republic data.
Table 6: Multicollinearity Test (Nature Republic)
Coefficientsa
Model Collinearity Statistics Tolerance VIF Brand Ambassador (X1)
Country of Origin (X2) Brand Image (X3)
.743 .558 .521
1.346 1.792 1.920 Source: primary data, processed (2022)
The multicollinearity test procedure applies to Pond's data. The tolerance values for a brand ambassador, country of origin, and brand image are respectively 0.996, 0.996, and 0.995.
Subsequently, the variance inflation factor (VIF) values for the same variables are 1.004, 1.004, and 1.005, respectively. Table 7 indicates that all variables for Pond's data have a tolerance of more than 0.1 and VIF less than 10, which means that all independent variables have no issue of multicollinearity.
Table 7: Multicollinearity Test (Ponds)
Coefficientsa
Model Collinearity Statistics Tolerance VIF Brand Ambassador (X1)
Country of Origin (X2) Brand Image (X3)
.996 .996 .995
1.004 1.004 1.005 Source: primary data, processed (2022)
As shown in Table 8, the results of this linearity test produce a value of 0.754 for the brand ambassador variable (X1), 0.440 for the country of origin variable (X2), and 0.276 for the brand image variable (X3) in the setting of the Nature Republic. These results indicate a significant linear relationship between the independent variables on the dependent variable because the deviation value from Linearity Sig. is more than 5%.
Table 8: Linearity Test (Nature Republic)
ANOVA Table
Sig.
Y1*X1 Y1*X2 Y1*X3
Deviation from Linearity
.754 .440 .276 Source: primary data, processed (2022)
The results of the linearity test for Pond's data are shown in Table 9. The p-values for each variable are 0.774 for the brand ambassador (X1), 0.628 for the country of origin variable (X2), and 0.074 for the brand image variable (X3). Therefore, there is a significant linear relationship between the independent and dependent variables because of the value of Deviation from Linearity Sig. obtained > 0.05.
Table 9: Linearity Test (Ponds)
ANOVA Table
Sig.
Y1*X1 Y1*X2 Y1*X3
Deviation from Linearity
.774 .628 .074 Source: Processed Data (2022)
Hypotheses testing
Firstly, multiple regression analysis provides the results of the F-test, which indicate whether independent variables affect the dependent variables simultaneously. The F-value for the Nature Republic and Pond's are 92.917 (p=<0.001) and 38.816 (p=<0.001), respectively. The results validate that the brand ambassador, country of origin, and brand image variables simultaneously affect the purchase decision variable.
Secondly, multiple regression analysis shows the individual effect of each independent variable on the dependent variable. Table 10 indicates that brand ambassador, country of origin, and brand image individually influence the purchase decision of Nature Republic. Meanwhile, brand image is the only predictor of the purchase decision for Pond's product.
Table 10: Individual t-test
Unstandardized
Coefficients t Sig.
B
Nature Republic (Constant)
Brand Ambassador (X1) Country of Origin (X2)
Brand Image (X3)
1.301 .122 .617 .184
1.294 2.386 12.851
2.126
.198 .018
<.001 .035 Pond's
(Constant)
Brand Ambassador (X1) Country of Origin (X2)
Brand Image (X3)
5.954 .023 .003 .876
2.714 0.280 .061 10.742
.026 .780 .951
<.001 Source: primary data, processed (2022)
5. Discussion
A brand Ambassador is an effective marketing strategy to convey the promotion of a product (Pandika et al., 2021). Brand ambassadors can bring consumers closer to the product. Nature Republic is a South Korean beauty product that uses the brand ambassador of a South Korean artist, the boy group NCT127. Based on these findings, brand ambassadors influence the purchasing decisions of Nature Republic products. The results may indicate that the product market segment (i.e., primarily women) matches the choice of brand ambassadors. Like South Korean artists, consumers who buy and use Nature Republic products aim to have clean skin.
In addition, NCT127 has conformity with the brand because the brand and the ambassador have the same country of origin. However, the significant influence of brand ambassadors on purchasing decisions does not apply to Pond's products. The result may indicate that Pond's brand ambassador does not match the customer profile. Nature Republic's brand ambassador, a male idol, has succeeded in attracting consumers who women dominate.
In contrast, Pond's brand ambassador, a South Korean female artist, did not attract the attention of women-dominated consumers. The gender difference between brand ambassadors in these two products is a concern. Nature Republic's strategy is successful in attracting the hearts of mainly women consumers through the use of male idols. While in this study, brand ambassadors for Pond's products are considered unsuccessful in attracting the hearts of Indonesian consumers.
In addition, the country of origin influences purchasing decisions only for the Nature Republic but not Pond's brand. South Korea is famous as a center for beauty products. Almost all beauty products from South Korea skyrocketed in the market. The same situation with the Nature Republic, the original South Korean product on the market. The country of origin dramatically influences the decision to purchase Nature Republic products. The assumption that South Korea can produce quality beauty products also arises from the perspective of respondents who use these products. South Korean drama, film, music, and fashion influence significantly shape South Korean stereotypes. The United States is also a country that can produce quality beauty products. Pond's, a native American product, has spread worldwide, including in Indonesia.
Pond's also has an official factory in Indonesia. However, respondents think that Pond's country of origin does not influence their product purchasing decisions. Perhaps respondents associate Pond's with Indonesia as a manufacturing country, not the United States as a brand country.
The result also means that Pond's consumers do not care where and where Pond's products are produced because Pond's itself is a native American product spread in various countries and is also produced in many countries. So that the United States is less attached to Pond's consumers, especially Pond's products produced in Asian countries, one of which is Indonesia. As a result, Pond's consumers do not consider the country of origin when evaluating Pond's products.
The brand image describes the extrinsic nature of a product or service, including how a brand tries to meet customers' psychological or social needs. A brand with a positive image will make consumers like products with relevant brands in the future. The results showed that brand image significantly affected purchasing decisions for the Nature Republic and Pond's products. The findings imply that brand image represents important cues that customers use before buying a product. In particular, those who had a positive experience of using a product were more likely to continue purchasing because they were satisfied with it. The experiences of Nature Republic consumers and Pond's consumers are the only things that can produce similarities in this research. Both Nature Republic and Ponds have shown their best quality so that they can give a good impression to their consumers.
6. Conclusion
Brand ambassador, country of origin, and brand image simultaneously affect the purchase decision of skin care products in the Nature Republic and Ponds. However, further findings indicate that all independent variables individually affect purchase decisions for Nature Republic but not Pond's product. Brand image is the only predictor of the purchase decision for Pond's product.
The congruity between a customer profile and a brand ambassador increases the brand ambassador's effect on purchase decisions. The country of origin effect is more powerful when there is a convergence between the country where the brand originates and the country where the product is manufactured. Meanwhile, brand image affects purchase decisions in line with customer experience with the brand, and brand image is the function of customer experience.
There are some managerial implications based on the study findings. Firstly, marketers may use brand ambassadors when they fit with customer profiles (e.g., demographic and lifestyle).
Secondly, although beyond the marketer's control, the marketers may utilize the country of origin cue when there is a convergence between the brand and the manufacturing country (i.e., they come from the same origin). Finally, marketers must ensure that they can consistently deliver the product and service as customers need and want.
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