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21276/sjhss
Purchase Decision Model: Analysis of Brand Image, Brand Awareness and Price
(Case Study SMECO Indonesia SME products)
Hafizh Novansa1, Hapzi Ali2
1
Student of Magister Management, Mercu Buana University, Jakarta Indonesia
2
Lecturer of Postgraduate, Mercu Buana University, Jakarta Indonesia
*Corresponding Author:
Hapzi Ali
Email: hapzi.ali@mercubuana.ac.id
Abstract: This study aimed to determine the effect of brand image, brand awareness and price on purchasing decisions
of products of SMEs in SMESCO Indonesia. Population in this study as many as 1340 people using Slovin’s formula,
then got the sample of research as many as 93 consumers. The result of descriptive statistical analysis shows that
respondents who answered agree on the indicators of research variables are very high and the results of multiple
regression analysis yields multiple linear regression equation Y = 9.430 + 0.227 X1 + 0.278 X2 + 0.376 X3. Based on the
results of the analysis showed that the variables of brand image, brand awareness and price influence the purchasing
decisions of products of SMEs in SMESCO Indonesia. Based on calculations using SPSS showed that the adjusted R
Square of 94.5% variable on purchase decisions are influenced by brand image, brand awareness and price while the
remaining 5.5% is influenced by other variables. Based on these results, it turns out the factors of bra nd image, brand
awareness and price can have a positive impact on purchasing decisions SME products from consumers SMESCO
Indonesia so as to achieve the purpose of the company's success.
Keywords: Purchase Decision, Brand Image, Brand Awareness, Price.
621
Hafizh Novansa et al.; Saudi J. Humanities Soc. Sci.; Vol-2, Iss-8(Aug, 2017):621-632
Medium Enterprises then established an institution 1. Analyze the influence of Brand image on purchasing
under the name of Marketing Service Institution of decisions.
Small and Medium Enterprises Cooperation (LLP- 2. Analyze the influence of brand awareness on
KUKM). LLP-KUKM is a non-profit organization and purchasing decisions.
an independent working unit under the Ministry of 3. Analyzing the influence of Price on purchasing
Cooperatives of Small and Medium Enterprises. Use the decisions.
operational name of SMESCO Indonesia, which is a 4. Analyze the influence of Brand image, Brand
professional institution to help promote and market awareness and Price to purchase decision.
KUKM products in order to compete in the global
market. THEORITICAL REVIEW
Currently SMESCO Indonesia has served at
Based on the temporary observation, the least 1,558 SMEs throughout the archipelago, can be
company has done all kinds of ways to market SME seen in the table below is the last 5 years of data where
products by holding SME product event, product SMESCO Indonesia always increases every year in
introduction event through cooperative ambassadors, serving and facilitate existing SMEs in the archipelago.
advertisement in print media or social media, but still Starting from 2010, 827 SMEs are served, the next 2011
not affecting the turnover up and down I am doing a is 1.133 SMEs, increased quite a lot compared to 2010.
research entitled Purchase Decision Model: Analysis of Then, 2012 increased again 1,272 SMEs served. In 2013
Brand Image Brand Awareness, Price and Promotion it increases to 1,371 underserved SMEs and by 2014
(Case Study SMECO Indonesia SME products). there are 1511 SMEs that join and are served by
SMESCO Indonesia. In 2015 it increases to 1,558 SMEs
Based on the formulation of the problem served and SMESCO Indonesia has not released the
objectives to be achieved in this study are to: latest data on the SME data base they serve in 2016.
UNDERSERVED SMES
1,800 1558
1,511
1,600 1,371
1,272
1,400
1,133
1,200
1,000 827
800
600
400
200
0
THN.2010 THN.2011 THN.2012 THN.2013 THN.2014 THN.2015
If SMEs continue to increase every year, then although all is not much different. This can be seen in
do not be surprised later local products (Local Brand) the table where the turnover in 2010 touched the number
will be a competitor for foreign products are rampant in Rp. 5,112,131,650 and decreased in 2011 to Rp.
Indonesia. If you want people to buy SME products then 4,637,964,300, then climbed back in 2012 to
SMESCO is the place and always make SMESCO as the Rp.5,684,767,300. But in 2013 turnover back down
home of SMEs and business people in Indonesia. If even though not too far the figure to Rp. 5,274,257,250.
SMEs are served by SMESCO Indonesia, it increases And in 2014 again rose again to Rp.5,279,179,075. The
every year, but not with the earnings turnover of turnover in 2015 is not all in the data and the estimates
SMESCO Indonesia in every year which has fluctuated are in the Rp. 2,870,595,700.
Income Target
Rp8,00,00,00,000
Rp5,11,21,31,650 Rp5,27,42,57,250
Rp7,00,00,00,000
Rp5,68,47,67,300 Rp5,27,91,79,075
Rp6,00,00,00,000
Rp4,63,79,64,300
Rp5,00,00,00,000
Rp2,87,05,95,700
Rp4,00,00,00,000
Rp3,00,00,00,000
Rp2,00,00,00,000
Rp1,00,00,00,000
Rp-
2010 2011 2012 2013 2014 2015
INCOME AND TARGET GRAPHIC
In addition, from the examination of the price products that are more expensive than the market price
of MSME products there are data found in the form of such as:
The price offered by SMESCO is higher than center for SME promotion. This gallery is expected to
the market price causing people less interested in buying be a place for creative and productive SMEs in
products offered by SMESCO. Can be seen from the Indonesia. They are required to display products with
above table price comparison offered with market prices global standards and also attract the interests of Private
in the area of Jakarta. For the quality of the products Equity / investors to enter and develop existing SMEs.
sold are not special if the view of the quality of goods The Board of Curators began working to curate Creative
sold also contained in the sale of other clothing in and Productive SMEs, so it is worth entering the Gallery
Jakarta. Under these conditions, purchasing decisions on Indonesia WOW There are three aspects that are
products offered by SMESCO are quite low with the assessed for SMEs to pass the shortlist of SMEs
same products of quality or model in other places of sale INDONESIA WOW 500.
or in malls.
First, the aspect of entrepreneurship, which
This WOW Indonesia Gallery is located in consists of indicators Opportunity Seeker, Risk Taker,
Small and Medium Enterprise and Cooperatives Selling Oriented. Second, the aspect of creativity, which
(SMESCO) building belonging to the Ministry of consists of New Idea & Execution indicator, and lastly,
Cooperatives and Small and Medium Enterprises as a productivity aspect, which consists of Effectiveness &
Efficiency indicator. The curation process is supported Media promotion of UMKM and Cooperative
by the curatorial boards who are experts in the field of products
SME development, among them, from Marketers, Trading House for export of UMKM and
selected SMEs are entitled to a promotion place at Cooperative products
Galeri Indonesia WOW !, have the opportunity to Market information system and export promotion
participate in the promotion of LLP KUKM - Gallery of for MSME and Cooperatives
Indonesia WOW with SMESCO in Under the Ministry UMKM and cooperatives facilitated for domestic
of Cooperatives and SMEs both at home and abroad, and foreign exhibitions
have a greater chance of growing with Investors & UMKM and Cooperatives facilitated
Private Equity. improvements in the design and quality of
Capacity Building of KUKM Partners of LLP- products for export.
KUKM Grand Management Program of SMESCO Hills
Promotion of SME Gallery and Provincial "The Best Place for Training and Leisure".
Pavilion as a Service Center for Regional Here is a flowchart for the entry of SME goods
Excellence KUKM Product Marketing to be facilitated by LLP-KUKM;
Developing Market Access for Preferred KUKM
Products
awareness pyramid: Top of Mind, Brand Recall, Brand has four dimensions: Top of Mind, Brand Recall, Brand
Recognition and Unaware of Brand. Many companies Recognition, and Unknowledge Brand Unaware of
make approaches to pricing based on the goals they Brand). Based on the four theories of Pricing (X3), then
wish to achieve. The goal can be to increase sales, the correct theory and chosen for this research is
maintain market share, maintain price stability, achieve Stanton [5] theory, Price has four dimensions: Price
maximum profit and so on. 4 Indicators that characterize Affordability, Price Compatibility with Products, Price
the prices used in this study, Stanton [5] Affordability of Competitiveness, and Price Compatibility with
prices, price conformity with product quality, price Benefits.
competitiveness and price conformance with benefits.
According to Kismono [6], the promotion consists of six Brand image (X1) effect on buying decision
variables: Advertising, Personal Selling, Public (Y) partially Apriyani [7] result stated that brand image
Relations, Sales Promotion, Direct Marketing and Word have positive and significant effect to purchasing
of Mouth. decision (Y). This means, the higher the brand image
the higher the level of purchase decisions that continue.
CONCEPTUAL FRAMEWORK Brand awareness (X2) effect on buying decision (Y)
Based on the five theories of Purchase partially result of research of Septi Chairani Hasibuan
Decision (Y), the correct theory and chosen for this [8]. Price (X3) effect on buying decision (Y) partially
research is Kotler and Armstrong [1], Purchasing result of research Ahmad Muanas [9].
Decision has five dimensions: Problem recognition,
Information search, Alternate evaluation, Buy decision, Brand image (X1), Brand awareness (X2),
and Behavior after purchase. Likewise with the four Price (X3) effect on purchasing decision (Y) partially
theories of Brand Image (X1), then the correct theory result of research of Ngakan Putu Surya Adi Dharma
and chosen for this research is Ferrinadewi [3], Brand and I Putu Gde Sukaatmadja [10]. Based on the
Image has three dimensions: Image maker, store image constrained theories that have been exposed and also
and product image. Brand Awareness Theory (X2) for based on previous studies, the model of frame of mind
this research is Shimp's [4] theory, Brand Awareness is described in the figure below.
Based on the draft analysis that has been stated 4) There is influence between Brand image, Brand
above, then the hypothesis to describe the level of awareness, and Price together towards Purchase
influence among variables built in this study are: Decision.
1) There is an influence between the brand image of
the Purchase Decision. METHODS
2) There is influence between brand awareness of The type of research design that will be
Purchase Decision. conducted in this research is quantitative research
3) There is an influence between Price on Purchase method which is a process to find knowledge using
Decision. numerical data as a tool to find information about what
we want to know Darmawan [13] in this research using 1 dependent variable (dependent). The variables are as
descriptive model research that is model Research that follows:
tells the current problem-solving is based on ready- 1) Independent Variable (X)
made data to present, analyze and interpret data. The independent variable is the variable that
influences or becomes the cause of the change or
Descriptive research is intended to describe the the incidence of the dependent variable (bound).
characteristics of a person or a group or a particular The independent variable is also a variable that
situation of a study. Through descriptive model can be influences the dependent variable, both positive and
analyzed based on interpretation of data obtained, negative. Independent / independent variables in
then from the data can be done identification to test this research are brand image (X1), brand
the theory, build facts, show relationships between awareness (X2), price (X3) and promotion (X4).
variables, provide descriptions, statistics, and forecast 2) Dependent Variable (Y)
results. The dependent variable (not free) is the variable
that is affected or the result, because of the
According to Sugiyono [11], quantitative independent variables. The dependent variable can
research method is a research method based on the also be referred to as a consequence variable
philosophy of positivism, used to examine the (consequent variable). The dependent variable in
population or specific samples, sampling techniques are this research is the purchase decision (Y).
generally done randomly, data collection using research 3) Scale in this research I use ordinal scale and
instruments, data analysis is quantitative / statistical measurement design in this research is likert scale.
purposes To test the predefined hypothesis. In this study the population is the visitors who
come to SMESCO, therefore this population is
In this study, the author uses 5 variables to be taken based on visitor data coming in 2015 as many
studied are: 4 independent variables (independent), and as 1340 visitors with details as follows.
In this research the sampling technique to be Darmawan [13]. In this study as for researchers using
used is non probability sampling. According Sugiyono three types of data collection techniques are:
[11] non probability sampling is a sampling technique 1. Questionnaire
that does not give equal opportunity for each element or 2. Observation
member of the population to be selected to be a sample. 3. Interview
The type of non probability sampling used is by The size or number of samples in this study
accidental sampling technique. Accidental sampling is was determined based on the theory developed by
accidental sampling by taking cases or respondents who Slovin in Edi Riadi [14] with the formula:
happen to exist or available somewhere in accordance N
with the research context Notoatmodjo [12]. So in the S = ——————
sampling technique here the researcher took respondents N.d2 + 1
from SMESCO visitors within three weeks in October Ket :
2016. S = sample size
N = population size
Technique Data collection is a way done and D = percent laxity inaccuracy due to sampling errors
the tools used by researchers in collecting data that can still be tolerated (generally 10% or 0.10%).
From the formula above Slovin formula, it will awareness, price and promotion then the purchase
be made calculations to find out how many samples will decision variable has a value of 29,171.
be taken. 2) The coefficient X1 (β1), indicating that each
increase of one set of brand image scores will be
N followed by a purchase rate increase of 0.227.
S = —————— 3) The coefficient X2 (β2), indicates that each
N.d2 + 1 increase of one unit of brand awareness score will
1340 be followed by an increase in the purchase decision
S = ——————— level of 0.278.
(1340 x 0,10)2+1 4) The coefficient X3 (β3), indicating that each
S = 93,05 increase of one unit of price score will be followed
S = 93 by an increase in the purchase decision level of
Based on the formulas and calculations of the 0.376.
above Slovin formula, the authors take samples of 5) These three regression coefficients have positive
visitors and guests at SMESCO LLP-KUKM as many as values that prove the positive contribution of the
93 samples. The sample already represents all or most three independent variables to the purchase
of the total number of visitors. However, the data to be decision (Y).
taken as a sample is a total of 93 visitors or samples in
accordance with the Slovin formula. Coefficient of Determination
The determination coefficient test is used to
RESULTS AND DISCUSSION see how variant of bound variable (purchasing decision)
Multiple Linear Regression Equation. influenced by variance of independent variable (brand
From the results of the above test it generated image, brand awareness, price and promotion) or in
multiple linear regression equation as follows: Y = other words how big independent variable influence
9.430 + 0.227 X1 + 0.278 X2 + 0.376 X3 dependent variable, seen from value Adjusted R square
(R2).
From the regression equation it is known that:
1) Constant value is 9.430. This means that without Based on the determination coefficient test
the influence of brand image variables, brand using SPSS software, the following results are
obtained:
Based on the findings of research data on dependent variable. The degree of significance used is
Summary Model table, can be clearly known 0.05. If the significant value is less than the degree of
acquisition coefficient of determination the trust then we accept the alternative hypothesis, which
percentage of purchasing decisions after influenced by states that a free variable partially affects the dependent
brand image variables. Brand awareness and price by variable.
looking at adjusted R square = 0.945 or 94.5% and the
remaining 100% - 94.5% = 5.5% is determined by other The t test is done by comparing the t value
factors not examined such as product quality variables. with the t table value at the 0.05 significance level.
Based on the calculation of multiple linear regression in
Partial Test (t test) the table below, the partial test can be shown in the
The t test is used to find out whether the following table:
partially free variables significantly or not affect the
Based on Coefficients table, can be clearly known table with sig. Α = 0,05 and df = n-k, that is 93-1 =
partial test results (t test) are: 92, then got t table equal to 1,986. The value of
1) Brand Image Variable (X1): Based on the results t count is bigger than t table: 3,797> t table
of t test obtained t count 2,316 and Sig. 0.001, 1,986, it shows there is positive and significant
while for t table with sig. Α = 0,05 and df = n-k, influence between price to purchase decision.
that is 93-1 = 92, then got t table equal to 1,986.
The value of t count is bigger than t table: t Simultaneous F Test (Anova)
value 2,316> t table 1.986, it shows there is Simultaneous test aims to determine the effect of the
positive and significant influence between brand independent variable (X) on the dependent variable (Y)
image to purchasing decision. simultaneously or together.
2) Brand Awareness Variables (X2): Based on t test
results obtained t count 2,656 and Sig. 0.001, while The simultaneous test is said to be significant if:
for t table with sig. Α = 0,05 and df = n-k, that is The value of F count > F table.
93-1 = 92, then got t table equal to 1,986. The
value of t count is bigger than t table: t value F count can be obtained through manual test (self-
2,656> t table 1,986, it shows there is positive and counting) or through result of data processing like SPSS
significant influence between brand awareness to (in table ANOVA with name F). While F table obtained
purchasing decision. only through manual test by looking at value in table F.
3) Variable Price (X3): Based on t test results
obtained t count 3,797 and Sig. 0.000, while for t
Based on simultaneous test results F (Anova (X2) and price variable (X3) can simultaneously
Test) as seen in ANOVA table obtained value F count = influence decision purchase variable (Y) significantly.
395.776 and Sig. 0,000. The F table value used is based
on the df of the numerator = m (number of predictor Interdigital Correlation
variables) and df denominator = (n-m-1) df The relationship between the dimensions of
numerator = 4 and df denominator (93-4-1) = 88 for a work motivation and compensation variable on
5% error rate of 2.47. F count = 395.776> F table = employee performance can be seen in table 6 as
2.47 and Sig value. 0.000 < 0,05 it can be explained follows:
that brand image variable (X1), brand awareness
variable
From Table 6 above can be explained as follows: that exist in the variable awareness of the product,
1. In the dimensions of the brand image variable, especially on dimensions do not recognize the
especially in the dimension of the image of the store brand has the lowest relationship with the
has the most powerful relationship with the dimensions of buying decisions on the purchase
dimension of recognition of the problem on the decision variable with a value of 0.145.
purchase decision variable with a value of 0.915. From this assessment can be concluded that the
From this result, it can be seen that consumers respondents in buying the product, do not question
consider SMESCO Indonesia as the primary choice the brand being sold because they know that the
to purchase KUKM products and according to their products sold are brands of products from the local
expectations. SMESCO Indonesia should maintain KUKM. Managers in this regard by introducing the
this assessment, one way is to improve the quality brands of KUKM products that are well known
of KUKM products sold in SMESCO Indonesia by through advertising both print and electronic media
curating or selecting products made by KUKM so that it can lure more consumers to come and buy
product experts. products KUKM in SMESCO Indonesia.
In the table above can also be seen that the 3. In the dimensions that exist in the price variables,
dimensions that exist in the brand image variable, especially in the dimension of price conformance
especially in the dimension of the image of the with the product has the most powerful
product has the lowest relation with the dimension relationship with the dimension of information
of information search on the purchase decision search on the purchase decision variable with the
variable with value 0.288. value of 0.869. From these results, it can be seen
This can happen because of lack of information that respondents who are consumers of SMESCO
obtained by consumers about the product. Indonesia first seek information about products in
SMESCO Indonesia Manager must optimize SMESCO Indonesia before buying the product.
KUKM product information to respondents through The information can be obtained through the flyer
flyer, poster, billboard through smescotrade.com responders, posters, billboards through the website
website. smescotrade.com. SMESCO Indonesia managers
2. In the existing dimensions of the brand awareness are advised to increase various types of promotion
variable, especially in the dimension of thinking has as a search for information for consumers. In the
the strongest relationship with the problem table above can also be seen that the dimensions
recognition dimension on the purchase decision that exist in the price variables, especially in the
variable with the value of 0.893. dimension of price conformance with the benefits
From this it can be explained that SMESCO have the lowest relation with the dimensions of
Indonesia has a good assessment in the community, behavior after purchase on the purchase decision
according to them the first place to come to buy variable with the value of 0.105.
KUKM products is SMESCO Indonesia. To This can happen because of lack of information
maintain this, SMESCO Indonesia must maintain a obtained by consumers about the benefits of a
positive assessment from the public that is selling product. SMESCO Indonesia managers must
KUKM products that suit their tastes and needs. optimize the information of a product by labeling
KUKM products sold must also be up to date or tags that contain information about the benefits of
follow the current product trend. the product, thereby creating the consumer's desire
In this table can also be seen that the dimensions to make repurchase.