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ANALYSIS OF PRICE INFLUENCE, PRODUCT QUALITY …………………………………..(Dwijantoro, Dwi, & Syarief)

THE INFLUENCE OF PRICE, PRODUCT QUALITY, AND PROMOTION

ON MARKETPLACE PURCHASE DECISION
SHOPEE

Rizky Dwijantoro, Bernadin Dwi, and Nobelson Syarief

Jakarta Veterans National Development University

Correspondence email: rizky.dwijantoro@upnvj.ac.id

http://dx.doi.org/10.21460/jrmb.2021.162.392

ABSTRACT

This study uses a quantitative descriptive method conducted on Shopee marketplace customers. The
purpose of this study is to find out and prove whether purchasing decisions on the Shopee marketplace
are influenced by price, product quality and promotion. The population in this study were students who had
made purchases through Shopee. The sample taken in this study amounted to 75 respondents using the
purposive sampling method by distributing questionnaires through google form. The analytical technique
used is descriptive analysis and inferential analysis using Partial Least Square (PLS) analysis tool. The
results showed that the variables of price and product quality had an effect on purchasing decisions.
Promotion also has a positive and significant effect on purchasing decisions.

Keywords: purchase decision, price, product quality, promotion

ABSTRACT

This study uses a quantitative descriptive method conducted on Shopee marketplace customers. The
purpose of this research is to find out and prove whether purchasing decisions in the Shopee marketplace
are determined by price, product quality, and promotion. The population in this study were students who
had made purchases through Shopee. The sample taken in this study was to find 75 respondents using
the purposive sampling method by distributing questionnaires through google form. The analytical
technique used is descriptive analysis and inferential analysis using Partial Least Square (PLS) analysis
tool. The results showed that the variables of price and product quality had an effect on purchasing
decisions. Promotion also has a positive and significant effect on purchasing decisions.

Keywords: purchase decision, price, product quality, promotion

PRELIMINARY The growth of e-commerce is growing

In the current era of modernization, technology
and information are developing very rapidly,
especially the internet. There is a tendency to
use gadgets , one of which is
become a change in the lifestyle of the people
who now carry out their activities in cyberspace,
for example shopping online (Fahrevi & Satrio,
2018).
quite rapidly even during the current pandemic.
As evidence, there is an increase in purchases
from e-commerce to the achievement of 18.1%
or 98.3 million transactions from a total transaction
of $1.4 million USD (Maulana, 2021).
Based on data from BI (Bank Indonesia),
it was recorded that almost double the number
of buying and selling transactions on e -commerce.

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JRMB, Volume 16, No. 2, December 2021
commerce has increased in the middle of this
COVID-19. With the number of surges starting
from 80 million transactions in 2019 it increased
to 140 million transactions until August 2020
(Uli, 2020).
Snapchart, an online application used in
conducting market research, knows all kinds of
online shopping trends
that arise throughout the month of Ramadan as well as
Eid 2020 which was operating in the middle of
the COVID-19 pandemic. The research shows
that there are 66% of the population of 1,000
respondents who made their choice to Shopee
as the
online shopping site that is used and always
remembered throughout the month of Ramadan
and Eid al-Fitr 2020. In detail, based on this
research, there are 58% of buyers in Greater
Jakarta who choose Shopee as an online
shopping site that cannot be forgotten and 72%
of buyers from origin outside Jabodetabek.
Furthermore, there are 77% of women
who shop using Shopee while 52% of men shop.
On the other hand, in Tokopedia, many men
use this platform from a percentage of 22%
compared to only 9% of women. according to age,
Shopee users are mostly young people who like
the platform with an age range of 19-24 years,
Lazada is under the age of 19 who like the
platform, with Bukalapak and Tokopedia mostly
over 35 years old who like the platform (Catriana,
2020) .
The survey conducted by APJII
(Association of Indonesian Internet Service
Providers) from a sample of 7,000 respondents
with a 95% confidence level and a margin of
error of 1.27%. The largest sample in all
provinces in Indonesia regarding internet usage
in 2019 until the second quarter of 2020. The
most frequently visited marketplace is Shopee
at 27.4%, Lazada at 14.2%, and Tokopedia at
5.2%. Purchasing necessities online for several
reasons, the first is the biggest reason, namely
the price given is very affordable or cheap at an
achievement of 15.2% (Pebrianto, 2020).
Not only that, Shopee also holds a
promotional campaign every month
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since February 2020. The name of the program
has also been aligned with the items and times
of the promotion, for example 2.2 Men Sale, 3.3
Fashion Sale to the latest 10.10 Brands Festival.
Through so many promotions, the shopee
platform resulted in the number of gross orders
experiencing annual growth (year on year / yoy)
from an achievement of 150.1% to 615.9 million
in the second quarter (Setyowati, 2020).
Referring to data released by iPrice,
there were 3 e-commerce in 2019 with the
largest visitors, namely Bukalapak, Tokopedia,
and Shopee. If based on the Playstore and
Appstore rankings, Shoppe ranks first compared
to Tokopedia even though Tokopedia is a
platform that has existed for a long time before
the Shoppe platform existed (Rachel, 2019).
From the explanation of some of the data
above, Shopee occupies the top position as the
most popular marketplace , of course there are
a number of factors that motivate and influence
buying decisions by buyers.
Based on the phenomenon that is
currently happening, the researcher is then
interested in testing and studying more deeply
about the background above, where the
researcher wants to analyze the background
with different demographics and different
circumstances from previous research where
researchers conducted research during a
pandemic situation. covid-19 which is different
from previous research.
The formulation of the problem in this
study are: Do price, product quality, and
promotion have an influence on purchasing
decisions on the
purpose
Shopee
of this
marketplace?
research isThe
to find
out, prove, and analyze whether price, product
quality, and promotion have an influence on
purchasing decisions on the Shopee marketplace.
LITERATURE REVIEW
Buying decision
According to Kotler & Keller (2016, p.
177), purchasing decisions are elements of
customer behavior, namely research
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ANALYSIS OF PRICE INFLUENCE, PRODUCT QUALITY …………………………………..(Dwijantoro, Dwi, & Syarief)
about how organizations, individuals, or
groups who make choices, decide to buy,
use, and how experiences, ideas, goods or
services are used to provide satisfaction of
their wants and needs. According to Kotler &
Armstrong (2018, p.175), consumer purchasing
decisions are buying brands where they really
like them, but 2 factors can occur between
purchase decisions and purchase intentions.
The conclusion is that purchase
decisions are the process of making decisions
to buy, where prospective consumers make
choices, make decisions about purchases,
and provide satisfaction for their wants and
needs.
Price
According to Kotler & Armstrong (2018,
p. 308), price is the expenditure of a certain
amount of money from the customer to obtain
the use or benefit or ownership of an item or
service. Kotler & Keller (2016, p.483) also
stated that the price is
a portion of the marketing mix that generates
revenue; On the other hand, the other part
gets the cost.
Price also conveys the expected value
position of the company's brand or product.
Goods that have been designed and then
sold with care can still be appreciated and
profitable.
So it can be concluded, the price is the
amount of money spent for consumers to get
the use, benefit or ownership of an item or
service.
The price itself is based on previous
research conducted by Prilano & Sudarso
(2020); Bones, Tumbel, & Walangitan (2019);
Scientific & Indra (2020); Kuswanto &
Vikaliana (2020); Silaban & Rosdiana (2020);
Aryani (2016); Wulandari, Mulyati, & Tjahjono
(2020); Albari & Safitri (2018); Akbar (2020);
and Mulya Firdausy & Idawati (2017) stated
to have an effect on purchasing decisions.
Product quality
According to Armstrong et al. (2018,
p.205), product quality is a key positioning
tool for marketers. Directly, quality affects the
performance of a product or service, so it is
closely related to customer satisfaction and
value. Definition of product quality according
to the presentation of Kotler & Keller (2016,
p.156)
namely all the characteristics of the ability of
an item or service to fulfill the needs of the
user with implications and expressions that
are a gift for customer satisfaction.
Thus, product quality is the overall
characteristic of the ability of an item or
service to satisfy or fulfill the needs of its
customers. Product quality based on
previous research that has been carried out by
Akbar (2020) where from the results of this research,
shows that the product quality variable has
an influence on purchasing decisions.
Promotion
According to Chaffey and Smith (2017),
promotion is an online option for all elements
of the promotion mix - from advertising, sales,
sales promotion, PR, sponsorship, direct mail,
exhibitions, merchandizing, packaging, word
of mouth. According to Kotler & Keller (2016,
p.622), sales promotion is the main key when
marketing campaigns, which are divided into
a set of incentive tools, with almost all of them
having a short-term nature. faster for
customers.
The conclusion is how sellers present
their products to consumers, with the aim of
conveying information about the product so
that they want to buy the products offered.
Promotion based on previous research
conducted by Tulangow, Tumbel, & Walangitan
(2019);
Prilano & Sudarso (2020 ); Mulya Firdausy &
Idawati (2017) stated to have an effect on
purchasing decisions.
Empirical Research Model
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Based on the explanation above, the
independent variables in this research are the
promotion variable, price, and product quality on the
dependent variable, namely the decision variable
Price
Quality
Product
Promotion
Figure 1. Research Model
Hypothesis
Based on the background explanation,
problem formulation, literature review and a number
of previous studies can be used as reference material
in this research. So the author formulates a hypothesis
or provisional conjecture on the problems to be
studied, namely:
H1: It is suspected that price has an influence on
purchasing decisions.
H2: It is suspected that product quality has an
influence on purchasing decisions.
H3: It is suspected that promotions have an effect
on purchasing decisions.
RESEARCH METHOD
Population and Sample
The population in this research are students
who use the Shopee application located in the South
Jakarta area. Meanwhile, for the sample, this
research uses purposive sampling technique. Where
the reference in determining the sample size is based
on the statement from Roscoe in Ferdinand (2014,
p. 173) which says that "the sample size that is
considered appropriate is greater than 30 and less
than 500". In this study, the number of samples itself
is determined from 25 times the number of
independent variables. Then the number of samples
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purchase. This picture can be seen in the following
figure:
Decision
Purchase
In this study, it was determined by 25 multiplied by 3
independent variables, where the result was 75
samples.
Data collection technique
The type of data used is data
quantitative. And the data source uses primary data
obtained through google form.
Analysis Techniques and Hypothesis Testing
The data analysis technique used by the
researcher is descriptive analysis technique, which
is used as an empirical description of the data that
has been collected (Ferdinand, 2014 p.229).
In this research, this descriptive analysis uses
the calculation results from the SmartPLS 3.3.2
output, namely based on the mean, minimum,
maximum and standard deviation values. The
minimum value is used to see the smallest value in
each variable, while the maximum value is used to
see the largest value in each variable. The mean
value is the average value of a data set of variables
in the study. The standard deviation in this study is
used to see the high and low deviation or variation of
a data. The variables in this study are price, product
quality and promotion, while the dependent variable
in this study is purchasing decisions.
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ANALYSIS OF PRICE INFLUENCE, PRODUCT QUALITY …………………………………..(Dwijantoro, Dwi, & Syarief)
While the inferential analysis in this study
was carried out through Partial Least Square to
analyze respondent data, while the results of
data processing obtained conclusions will be
drawn from the sample.
Meanwhile, in this research, validity, reliability
testing, coefficient of determination test, and
hypothesis
testing will be carried out using statistical t-test.
RESULTS AND DISCUSSION
Description of Respondent Data
Number of respondents who are gender
38 male respondents and 37 female respondents.
Number of respondents who
made purchases 3-5 times totaling 21 students,
the number of respondents who made purchases
6-8 times amounted to 14 students then the
number of respondents who made purchases
as many as 9-10 times as many as 16 people
and the number of respondents who made
purchases more than 10 times was as many as
24 students.
The number of students aged between 17 to 20
years is 38 people, Meanwhile, respondents
aged 21 to 25 years are 37 people.
Descriptive Analysis
Respondents' Perceptions of Decisions
Purchase
Based on Table 1 which has been
obtained from the PLS output results, it can be
seen that the largest average value (mean) is
found in the KB 12 question item with a value of
4,373, this number can be interpreted that the
respondent agrees with the statement "payments
to Shopee can be made via transfer bank”
because the payment can be made via bank
transfer. The smallest mean value for KB 7
question item with a value of 3,240, this number
means that respondents are unsure about the
absence of a limit to the number of orders in the
Shopee marketplace . Furthermore, it can be
seen that the minimum value in each item of the
purchase decision variable question, the
respondent gives a value with a score of 1 and
The maximum value assessed by respondents
from each question item on the purchasing
decision variable is a score of 4 and 5. The
standard deviation value for each question item
on the purchasing decision variable has a value
smaller than the average value (mean) which
indicates that there is no sufficient data deviation.
large on the purchasing decision variables.
Respondents Perception of Price
Based on the results of the table that has
been obtained from the PLS output results. it
can be seen that the largest average value
(mean) is found in item H 5 with a value of
4,693, this number can be interpreted that
respondents agree that the prices of products
offered by Shopee are in line with the benefits
provided, and the smallest average value (mean)
in question item H 1 with a value of 4,493, this
number means that respondents like shopping
through Shopee because the prices of products
offered are relatively affordable. Furthermore, it
can be seen that the minimum value in each
question item on the purchasing decision
variable, the respondent gives a score with a
score of 1 and 2. And the maximum value
assessed by the respondent from each question
item on the purchasing decision variable is a
score of 5. The standard deviation value for
each item of the decision variable question
purchases have a value smaller than the average
value (mean) which indicates that there is no
significant deviation
variable.
in the data on the price
Respondents Perception of Quality
Product
Based on Table 2 which has been
obtained from the PLS output results. it can be
seen that the largest mean value is in question
item KP 4 with a value of 4,587, this number can
be interpreted that respondents agree that the
quality of the products offered by Shopee does
not disappoint. and the smallest mean (mean)
for question item KP 3 with a value of 4,280, this
number means that respondents agree that the
products provided by Shopee are in line with the
descriptions shared.
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Table 1. Descriptive Statistics of Purchase Decision Variables

Question Items Mean Standard Deviation Minimum Maximum
KB1 3,333 1,000 4,000 0.718
KB2 3,693 1,000 4,000 0.632
KB3 3,613 1,000 4,000 0.728
KB4 3,20 1,000 4,000 0.755
KB5 3,320 1,000 4,000 0.751
KB6 3,280 1,000 4,000 0.704
KB7 3,240 1,000 4,000 0.797
KB8 3,587 1,000 4,000 0.655
KB9 3,333 1,000 4,000 0.699
KB10 3,387 1,000 4,000 0.691
KB11 4,093 1,000 5,000 0.941
KB12 4,373 5,000 0.845

Furthermore, it can be seen that the KP 1 to KP 10 questions. The standard deviation

minimum value in each question item on the
purchasing decision variable, the respondent
gives a score with a score of 1 and 2. And the
maximum value assessed by the respondent
from each question item on the purchasing
decision variable is a score of 5 points.
value for each item of the purchasing decision
variable questions has a value smaller than the
average value (mean) which indicates that there
is no significant data deviation on the product
quality variable.

Table 2. Descriptive Statistics of Price Variables

Question Items mean Minimum Maximum Standard Deviation

H1 4.493 2,000 5,000 0.941
H2 4,547 1,000 5,000 0.845
H3 4,520 1,000 5,000 0.755
H4 4,627 2,000 5,000 0.688
H5 4,693 1,000 5,000 0.610
H6 4.653 2,000 5,000 0.600

Table 3. Descriptive Statistics of Product Quality Variables

Question Items Mean Minimum Maximum Standard Deviation
KP1 4,507 2,000 4,573 1,000 5,000 0.719
KP2 4,280 2,000 4,5874,467
1,000 5,000 0.769
KP3 1,000 4,280 1,0001,000
4,387 5,000 0.974
KP4 4,347 1,000 4,5074,480
2,000 5,000 0.768
KP5 1,000 Table 4. 5,000 0.884
KP6 Descriptive Statistics
of 5,000 0.873
KP7 Promotional Variables 5,000 0.831
KP8 5,000 0.808
KP9 5,000 0.755
KP10 5,000 0.822

Question Items mean Minimum Maximum Standard Deviation

P1 3,653 1,000 4,000 0.662
P2 3,520 1,000 4,000 0.661
P3 3,493 1,000 4,000 0.681
P4 2,973 1,000 4,000 0.938
P5 3,653 1,000 4,000 0.663
P6 3,187 1,000 4,000 0.761
P7 3,533 1,000 4,000 0.639

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ANALYSIS OF PRICE INFLUENCE, PRODUCT QUALITY …………………………………..(Dwijantoro, Dwi, & Syarief)
Question Items mean
P8 3,613
P9 3,747
P10 3.253
Respondents Perception of Promotion
Based on Table 4 which has been obtained
from the PLS output results, it can be seen that the value of
The largest mean is found in question P 9 with a
value of 3,747.
This figure can be interpreted that respondents
are unsure about the statement that Shopee often
does promotions with mass media and the
smallest average value (mean) in question P 4
with a value of 2,973. This figure means that
consumers do not agree that the provision of free
shipping on a certain number of orders can attract
attention to make a purchase. Furthermore, it can
be seen that the minimum value in each question
item on the purchasing decision variable, the
respondent gives a score with a score of 1 and
the maximum value assessed by the respondent
from each question item on the purchasing
decision variable is a score of 4 for the questions
P 1 to P 10. The standard deviation value on
each item of the question the purchase decision
variable has a smaller value
Figure 2. Outer Model
Minimum Maximum Standard Deviation
1,000 4,000 0.651
1,000 4,000 0.591
1,000 4,000 0.750
from the average value (mean) which shows that
there is no significant data deviation in the
promotion variable.
Inferential Analysis
Inferential analysis is an analytical
technique that is generally used in the field of
management as a determinant of how far the
similarities from the results obtained with the
results of the entire population. The tool to
analyze the data in this research is to use Partial
Least Square (PLS).
Measurement Model (Outer Model)
The outer model has each indicator block
associated with its latent variable.
Designing measurement models in determining
the nature of indicators as well as each latent
variable, whether the results are reflexive or formative.
The basis is based on theory, previous empirical
research, or rationale. The results of the validity
test of the SmartPLS 3.3.2 path diagram are
described as follows:
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Based on the output image above, it can
be seen that the reflective variables in this
study, namely the price, product quality and
promotion variables have a loading factor value
of > 0.7 which indicates that it has fulfilled the
requirements to be valid and has no problems
because the loading scale of 0.5 - 0.6 is still
acceptable. in the development stage (Ghozali,
2014, p. 39). In the picture above shows that
the value of the loading factor
the lowest of each variable indicator is at H1,
KP3, P4, and KB11 where this value is still
acceptable because it is above the loading
scale of 0.5 in line with the explanation
Ghozali above and it can be concluded that all
the question instruments in this study have a
loading factor value above 0.5 and the research
can be continued.
Validity test
According to Ghozali's view (2014, p.39),
the validity test is used to measure whether a
questionnaire is valid or not.
A questionnaire is declared valid if the questions
in the questionnaire are able to express
something that will be measured by the
questionnaire.

Table 5. Convergent Validity through Output Loading Factor

Price Purchase Decision Product quality Promotion

KB1 0.831
KB2 0.829
KB3 0.722
KB4 0.782
KB5 0.819
KB6 0.783
KB7 0.787
KB8 0.846
KB9 0.829
KB10 0.831
KB11 0.634
KB12 0.692
H1 0.815
H2 0.914
H3 0.873
H4 0.823
H5 0.832
H6 0.836
KP1 0.877
KP2 0.889
KP3 0.536
KP4 0.909
KP5 0.806
KP6 0.806
KP7 0.757
KP8 0.807
KP9 0.816
KP10 0.836
P1 0.785
P2 0.818
P3 0.851
P4 0.626
P5 0.758
P6 0.760
P7 0855
P8 0855
P9 0.858
P10 0.662

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ANALYSIS OF PRICE INFLUENCE, PRODUCT QUALITY …………………………………..(Dwijantoro, Dwi, & Syarief)

Based on the table above, it shows that the
loading factor value is above 0.50
in the table above the highest value is at
the H2 construct is 0.914, then the lowest value in
the table is in the question item KP3 which is 0.536
where from all indicators on the loading factor all
reflective variables show values above 0.50 so it can
be said to be valid and the highest AVE value is in
the Price variable, namely with a value of 0.722.
Variable
it has a value above 0.5 so that the variable can be
declared valid and further data processing can be
carried out.
Reliability Test
The reliability test on PLS was measured
using 2 parameters, namely composite reliability and
Cronbach's alpha
of indicators that calculate variables (Ghozali, 2014,
p.65). The following is the result of the composite
reliability value obtained from the SmartPLS 3.3.2
output.
From Table 7, the Composite Realibility and
Cronbach Alpha values of all variables have a value
> 0.7. This proves
that each question instrument on each variable is
relevant and reliable so that further data processing
can be carried out.
Coefficient of Determination Test
The coefficient of determination (R-Square)
in this research is used to measure the extent to which
meet the requirements of the convergent validity test
and this research questionnaire appropriately
measures the variables in this study.
Discriminant Validity Test
Based on Table 6, Average Variance
Extracted all variables worth > 0.5 where the lowest
AVE value is in the purchase decision variable with
a value of 0.616 and
which is the ability of the model when explaining the
variation of the dependent variable. R2 is an indicator
that describes how much variation there is in the
model.
Based on Table 8, the contribution of the
independent variables, namely price, product quality
and promotion to the dependent variable, namely the
purchasing decision variable is 0.874 or 87.4%, while
the remaining 13.6% is influenced by variables
outside the research model.
Hypothesis testing
The hypothesis test is carried out using a t-
test which will show the extent to which the
independent variables will individually be affected
when explaining the dependent variation.
In this study, a two-sided table was used with
a known t-table value of 1.994 which was obtained
from the equation value df = N - k or df = 75 - 4 = 71
with a degree of confidence or significance of = 0.05
or a 95% truth level.

Table 6. Average Variance Extracted (AVE)

Variable AVE Rule of Thumb Result

Price 0.722 >0.50 Valid

Buying decision 0.616 >0.50 Valid
Product quality 0.656 >0.50 Valid
Promotion 0.619 >0.50 Valid

Table 7. Reliability Test

Composite Cronbach's
Variable
Reliability Alpha
Price 0.940 0.923
Buying decision 0.950 0.942
Product quality 0.950 0.941
Promotion 0.941 0.930

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Table 8. R-Square

Variable R Square
R Square
Adjusted

Buying decision 0.874 0.869

Table 9. T . test
Original T Statistics P
Sample Values
(|O/STDEV|)
(O)
Price -> Purchase Decision 0.174 3.363 0.001
Product Quality -> Decision 0.156 2,404 0.017
Purchase

Promotion -> Purchase Decision 0.781 15,483 0.000

Based on the results of the t-test above, it
can be seen that the test results on the price
variable on purchasing decisions have a positive
relationship. This can be seen from the correlation
value or the original sample value of 0.174. When
viewed from the results of the t statistical test,
the data results show tcount 3.363 > ttable 1.994
and it can be concluded that the price variable
has an effect on purchasing decisions.
This is evidenced by the P-Values value or a
significant value of 0.001 <0.05 which indicates
that the price variable has a significant and
significant influence on purchasing decisions, so
H1 is accepted.
In Table 9, it can also be seen that the
test results on the Product Quality variable on
purchasing decisions have
a positive relationship, this can be seen from the
correlation value or the original sample value of
0.156. When viewed from the results of the t
statistical test, the results of the data show tcount
2,404 > ttable 1,994 and it can be concluded that
the Product Quality variable has an effect on
purchasing decisions. This is evidenced by the
value of P Values or a significant value of 0.017
<0.05 which indicates that the Product Quality
variable has a significant and significant influence
on purchasing decisions, then H2 is accepted.
Based on Table 9, it can be seen that the
test results on the Promotion variable on
purchasing decisions have a positive relationship,
this can be
original
seen sample
from thevalue
correlation
of 0.781.
value
If itor
is the
seen from the results of the t statistical test, the
results of the data
shows tcount 14,649 > ttable 1,994 and it can be
concluded that the Promotion variable has an
effect on purchasing decisions.
This is also evidenced by the value of P Values
or a significant value of 0.000 <0.05 which
indicates that the Promotion variable has a
significant and significant influence on purchasing
decisions, then H3 is accepted.
DISCUSSION
Influence of Price on Decision
Purchase
Based on the hypothesis testing that
researchers have done, it shows that the price
variable has an influence in increasing purchasing
decisions. This is shown based on the P values
of 0.001 <0.05 which indicates that the price
variable has an effect and is significant on
purchasing decisions.
This means that the indicators in the price
variable, namely price according to benefits,
price according to quality, and price affordability
make a major contribution in influencing
purchasing decisions. The importance of pricing
on the Shopee marketplace is a consideration
for consumers in making purchases
preventing businessand
competitors.
Consumers who make purchases at Shopee will
make purchasing decisions if the consumers feel
the benefits of the product are more

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large or equal to the amount of money spent,
and also with the affordability of the price,
consumers can buy the products offered at
Shopee and also consumers feel that if the
price offered is higher between the 2 product
choices, consumers will choose the higher
price because usually many people consider
that the quality of the product matches the
price.
Based on the theory of Kotler &
Armstrong (2018, p.308), price is spending a
certain amount of customer money in order
to get the use or benefits or ownership of an
item or service where it can be seen that
consumers who make purchasing decisions
through Shopee make several considerations
before making a purchase.
The results of this study are in line with
previous research conducted by Prilano &
Sudarso (2020); Bones, Tumbel, & Walangitan
(2019); Scientific & Indra (2020); Kuswanto
& Vikaliana (2020); Silaban & Rosdiana
(2020); Aryani (2016); Wulandari, Mulyati, &
Tjahjono (2020); Albari & Safitri (2018); Akbar
(2020); Mulya Firdausy & Idawati (2017)
where the research results show that the
price variable has an influence on decisions
purchase.
Effect of Product Quality on
Buying decision
Based on the hypothesis testing that
the researchers have done, it shows that the
product quality variable has an influence in
improving purchasing decisions. This is
shown based on the P-values of 0.017 <0.05
which indicates that the product quality
variable has an effect and is significant on
purchasing decisions.
This means that all the indicators
contained in the product quality variable,
namely adjustment, quality suitability,
reliability, ease of repair, and design have an
influence on purchasing decisions.
Product quality is very important in maintaining
a business. Consumers like to shop at
Shopee because the quality of the products
they receive does not disappoint and there
are many variations of product designs. From
the indicators used
it can be concluded that consumers like the
product designs offered by Shopee, then
consumers like shopping at shopee because
the products can be changed according to
consumer demand.
The definition of product quality is
according to the explanation of Kotler & Keller
(2016, p. 156), namely all the characteristics
of the ability of an item or service to fulfill
user needs with implications and expressions
that are a gift for consumer satisfaction.
This is related to the quality of the
products offered by Shopee where consumers
choose to make purchasing decisions
because the products offered can meet the
needs or needs of consumers and can also
make consumers satisfied to make purchases
at Shopee. The results of this study are in
line with the research that has been carried
out by Akbar (2020) where the results of this
research show that product quality variables
have an influence on decisions
purchase.
Effect of Promotion on Decision
Purchase
Based on the hypothesis testing that
the researchers have done, it shows that the
promotion variable has an influence in
increasing purchasing decisions. This is
shown based on the P values of 0.000 <0.05
which indicates that the promotion variable
has an effect and is significant on purchasing
decisions.
This means that the promotions carried
out by Shopee have succeeded in attracting
consumers to make purchases. It can be
seen from the indicators, namely direct sales
(direct marketing), public relations (public
relations), personal selling (personal selling),
sales promotion (sales promotion), and
advertising (advertising). The provision of
free shipping attracts consumers' interest in
deciding to purchase a product.
Based on the theory from Kotler and
Armstrong (2017, p. 78) suggests that
promotion is an activity of distributing benefits
with a persuasive nature aimed at customers
who will decide to buy.
73
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JRMB, Volume 16, No. 2, December 2021
This is related to the promotional methods
carried out by Shopee which are persuasive so
as to stimulate consumers to make purchases.
With the right promotion Shopee can reach
consumers throughout Indonesia.
The results of this study are in line with the
research conducted by Tulangow, Tumbel, &
Walangitan (2019); Prilano & Sudarso (2020);
Silaban & Rosdiana (2020) and Firdausy &
Idawati (2017) where the results of this study
indicate that the promotion variable has a positive
influence on purchasing decisions.
CONCLUSION
Based on the results of the analysis and
discussion previously described regarding the
effect of price, product quality and promotion on
purchasing decisions, it is concluded that price
has a positive influence on purchasing decisions,
meaning that pricing in the marketplace
Shopee is a consideration for consumers in
making purchases and preventing business
competitors. this is in accordance with the
hypothesis that has been made by the researcher.
In addition, product quality has a positive
influence on decisions
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