The Influence of Product Quality, Promotion, and Lifestyle on Metro Department Store Pondok Indah Consumer Purchasing Decisions

 

Dhea Khoyrunnisa1, Elwisam2, Kumba Digdowiseiso3*

Faculty of Economics and Business, Universitas Nasional, Indonesia1,2,3

Email: dheakhoyrunnisa@gmail.com1, [email protected]2, [email protected]3*

 

 

Abstrak


This study aims to analyze the Effect of Product Quality, Promotion, and Lifestyle, on the Purchasing Decisions of Metro Department Store Pondok Indah Mall Consumers. This study used primary data by distributing questionnaires as many as 100 respondents. Data analysis using Multiple Linear Regression analysis. The results of the study showed that the variables of Product Quality, Promotion, and Lifestyle had a positive and significant effect on Purchasing Decisions.

 

Keywords: Product Quality, Promotions, Lifestyle, and Purchasing Decisions.

 

 

INTRODUCTION

Along with the times, fashion is not something ordinary anymore for society. Fashion becomes an inseparable part of everyday style, a person can show who he is with style. In addition, the products marketed must have quality and not just ordinary products. Lifestyle demands on the community are now increasing and prioritize the appearance that is as attractive as possible.

Consumer needs for fashion products cause more and more retail stores to emerge and they are competing to meet consumer needs. That way the development of retail in the fashion sector causes increased competition, so retailers are required to be more proactive and innovative in the procurement of quality goods and promotions in order to gain a competitive advantage in winning market share and high style needs for consumers.

The fashion business is endless, this may be what keeps this business afloat and becomes a favorite business choice for large and small scale businesses. This fashion business is no longer considered a primary need but has become a secondary need even by certain circles of fashion including tertiary needs such as socialites and celebrities. Fashion trends that continue to develop and adjust to the era also affect the increasingly rampant fashion business Irawan (2014). The following is data on sales growth of Metro Department Store 2016 -2019:

 

(Source : Internal Company 2019)

Figure 1. Metro Pondok Indah Sales Growth

Based on Graph 1.1 data, it shows that there were fluctuations in Metro Pondok Indah Mall sales growth from 2016 to 2019. This indicates that sales of Metro Department Stores are not growing as expected.

According to Kusumawati (2016),  Primantari and Purnami (2017), Dewi and Prabowo (2018) Product quality, promotion and lifestyle are factors that influence purchasing decisions, because these factors are interrelated and as consumer considerations in decision making.

According to Ananingsih, Hasiholan, and Wahyono (2018) Promotion reflects activities that communicate the superiority of the product and persuade consumers to buy it., Through appropriate promotion, promotion is expected to increase the sales volume of a product and lure someone to buy so as to increase the company's sales.

According to Fatmawati and Soliha (2017), The better the product quality, it will improve the purchasing decision process, and it will affect the development of the company, therefore product quality has a positive effect on purchasing decisions.

According to Soepeno, Tumbel, and Umboh (2015) lifestyle shows how people live, how to spend their money, and how to allocate time.

Based on this background, it is necessary to conduct research to test and analyze the influence of product quality, promotion, and hdup style on purchasing decisions at Metro Department Store Pondok Indah Mall.

 

RESEARCH METHOD

Object of Research

The object of research researched by researchers is Purchasing Decisions at Metro Department Store which are influenced by product quality, promotion, and lifestyle.

Data Sources and Types

The type of data used in this study is primary data sourced from questionnaire results.

Population and Sample

The population used in this study is customers of Metro Department Store Pondok Indah Mall. The number of samples taken was determined using the formula Anderson et al., (2014: 364), namely:

Information:

n = minimum number of samples required

Zα/2= Z table at  a certain level of significance 1.96 of a signification level of 95%

P*= proportion of population expected to have characteristics

Analysis Methods

The analysis method in this study is multiple linear regression which aims to analyze the influence of product quality, promotion, and lifestyle on consumer purchasing decisions at Metro Department Store Pondok Indah Mall.

 

RESULTS AND DISCUSSION

Research Results

Instrument Test

Based on the results of the validity test, all statement items in this study have an   r count > r table of 1.96, so that all statement items are valid. Based on the validity test in this study has Cronbach's alpha above 0.6, so each of these variables is reliable.

Classical Assumption Test

Based on the results of the normality test, an asymp. sig (2-tailed) of 0.200 is obtained which is greater than 0.05, so that all data are normally distributed.

The results of the autocorrelation test show that  the value of Durbin Watson (DW) is 1.814, then we will compare this value with the value of the significance table of 5%, the number of samples is: 100 and the number of independent variables (X) is 3, then obtained DU of: 1.736. The DW value is greater than the upper limit (Du), namely: 1.736 and less than (4-DU) = 4 – 1.736 = 2.264 (1.736<1.814<2.264) so that it can be concluded that there is no Otocorrelation.

The results of heteroscedasticity can be explained by the heteroscedacity test with the glacier method obtained a significance value greater than 0.05, so that it can be said that the data does not occur heteroscedacity problems.

The results of the multicholinerity test can be seen that all the independent variables above have a tolerance value greater than 0.1 and a VIF value smaller than 10, so it can be concluded that there is no multicollinearity for all independent variables, namely Product Quality (X1), Promotion (X2) and Lifestyle (X3).

Multiple Linear Regression Analysis

 

Table 2. Multiple Linear Regression Analysis Results

Coefficientsa

Type

Unstandardized Coefficients

Standardized Coefficients

t

Sig.

Collinearity Statistics

B

Std. Error

Beta

Tolerance

VIF

1

(Constant)

5.461

1.561

 

3.498

.001

 

 

Product Quality

.340

.111

.273

3.056

.003

.908

1.102

Promo

.117

.075

.163

1.558

.002

.658

1.519

Lifestyle

.331

.109

.307

3.024

.003

.703

1.421

a. Dependent Variable: Purchase Decision

(Source : data processed SPSS 23 2020)

Y = 0.273 X1 + 0.163 X2 + 0.307 X3

Information:

Y = Purchase Decision

X1 = Product Quality1

X2 = Promotion

X3 = Lifestyle

Model Due Diligence

Test F

Based on the results of the F test, it can be known that the value of Fcalculate > Ftable or 42.288 > 2.70 and a significant value of 0.000 < 0.05, then Ho 4 is rejected and Ha4 is accepted, namely that the variables of product quality, promotion and lifestyle together have a significant effect on the variable of purchase decision.

Test R2 (Coefficient of Determination)

Based on the results of the R 2 test, it can be known that the value of the correlation coefficient (R2) of 0.306 shows that between the variables of product quality, promotion and lifestyle to purchasing decisions can be explained, which means that independent variables can explain changes in purchasing decision variables 69.4% while the remaining 30.6% are explained by other factors outside this study.

Hypothesis Testing (Test t)

1.    Based on the results of the t test, it can be explained that the influence of the Product Quality variable on Purchasing Decisions seen from a significant value of 0.003 (0.003 < 0.05). So it can be concluded that there is a joint influence between product quality on purchasing decisions.

2.    Based on the results of the t test, it can be explained that the effect of promotion on Purchase Decisions is seen from a significant value of 0.002 ( 0.002 < 0.05). So it can be concluded that there is a joint influence between promotions on purchasing decisions.

3.    Based on the results of the t test, it can be explained that the influence of Lifestyle variables on Purchasing Decisions seen from a significant value of 0.003 ( 0.003 < 0.05). So it can be concluded that there is a joint influence between lifestyles on purchasing decisions.

Discussion

The Effect of Product Quality on Purchasing Decisions

Based on the results of hypothesis testing, it was found that the quality of the porduk had a positive and significant effect on purchasing decisions. This positive and significant influence indicates that product quality for Metro products can influence the Purchase Decision. The results of this study are in line with the results of research conducted by Sidin (2014) which states that product quality has a positive and significant effect on customer satisfaction. This shows that good product quality makes consumers think about making purchases. Efforts that can be made by the company are to improve the quality of products that can be accepted by customers.

The Effect of Promotions on Purchase Decisions

Based on the results of hypothesis testing, it was found that promotion has a positive and significant effect on purchasing decisions. This positive and significant influence indicates that promotions for Metro products can influence Purchase Decisions. The results of this study are in accordance with the research Kusumawati (2016) which states that promotions have a significant positive effect on purchasing decisions. Because with the promotion customers will be easily interested in shopping. Attractive promotions will make customers decide to shop at Metro. Efforts that can be made are to maintain promotions that can attract customers.

The Influence of Lifestyle on Purchasing Decisions

Based on the results of hypothesis testing, it was found that lifestyle has a positive and significant effect on purchasing decisions. This positive and significant influence indicates that the lifestyle of Metro customers can influence the Purchase Decision. The results of the study are in accordance with Kusumawati's (2016) research which states that lifestyle has a significant positive impact on purchasing decisions. As more consumers shop at Metro as a lifestyle, the decision to purchase Metro products will increase.

 

CONCLUSION

Based on the results of the study, it can be concluded that product quality, promotion, and lifestyle partially have a positive and significant effect on the purchasing decisions of Metro Department Store Pondok Indah Mall consumers.

This article is a part of joint research and publication between Faculty of Economics and Business, National University, Jakarta and Faculty of Business, Economics, and Social Development, Universiti Malaysia Terengganu.

 

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Copyright holder:

Dhea Khoyrunnisa, Elwisam, Kumba Digdowiseiso (2024)

 

First publication right:

Journal of Social Science

 

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