THE INFLUENCE OF PERCEIVED PRICE AND ADVERTISEMENT ON PURCHASE DECISION OF ABC SYRUP (The Research...

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1 THE INFLUENCE OF PERCEIVED PRICE AND ADVERTISEMENT ON PURCHASE DECISION OF ABC SYRUP (The Research is on Inhabitants of DKI Jakarta Province) Setyo Ferry Wibowo Faculty of Economics, State University of Jakarta Email: [email protected] Muhamad Body Prahala Faculty of Economics, State University of Jakarta Email: [email protected] Basrah Saidani Faculty of Economics, State University of Jakarta Email: [email protected] ABSTRACT The purposes of this research are: (1) to examine empirically the influence of perceived price on purchase decision of ABC syrup, (2) to examine empirically the influence of advertisement on purchase decision of ABC syrup. This research uses survey method for collecting data. The objects in this research are 200 respondents of DKI Jakarta inhabitants who had purchased ABC syrup in the minimarket or supermarket located in DKI Jakarta within the past two years. The method used in this research is linear regression analysis with SPSS Statistic for Windows 20.0 software. The results of hypothesis testing show: (1) there is an influence of perceived price on purchase decision with the value of t count 6.067 and significance 0.000, (2) there is an influence of advertisement on purchase decision with the value of t count 7.201 and significance 0.000. The result of determination coefficient (R 2 ) shows that 49,1% variation of purchase decision is explained by perceived price and advertisement. The results of this research are beneficial for PT Heinz ABC Indonesia to formulate a better strategy in terms of increasing purchase decision of ABC syrup product. Keyword: perceived price, advertisement, purchase decision

Transcript of THE INFLUENCE OF PERCEIVED PRICE AND ADVERTISEMENT ON PURCHASE DECISION OF ABC SYRUP (The Research...

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THE INFLUENCE OF PERCEIVED PRICE AND

ADVERTISEMENT ON PURCHASE DECISION OF ABC SYRUP

(The Research is on Inhabitants of DKI Jakarta Province)

Setyo Ferry WibowoFaculty of Economics, State University of Jakarta

Email: [email protected]

Muhamad Body PrahalaFaculty of Economics, State University of Jakarta

Email: [email protected]

Basrah SaidaniFaculty of Economics, State University of Jakarta

Email: [email protected]

ABSTRACT

The purposes of this research are: (1) to examine empirically the influence ofperceived price on purchase decision of ABC syrup, (2) to examine empirically theinfluence of advertisement on purchase decision of ABC syrup. This research usessurvey method for collecting data. The objects in this research are 200 respondents ofDKI Jakarta inhabitants who had purchased ABC syrup in the minimarket orsupermarket located in DKI Jakarta within the past two years. The method used inthis research is linear regression analysis with SPSS Statistic for Windows 20.0software. The results of hypothesis testing show: (1) there is an influence of perceivedprice on purchase decision with the value of tcount 6.067 and significance 0.000, (2)there is an influence of advertisement on purchase decision with the value of tcount

7.201 and significance 0.000. The result of determination coefficient (R2) shows that49,1% variation of purchase decision is explained by perceived price andadvertisement. The results of this research are beneficial for PT Heinz ABCIndonesia to formulate a better strategy in terms of increasing purchase decision ofABC syrup product.

Keyword: perceived price, advertisement, purchase decision

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PREFACE

Background

The increasingly fierce competition in the business world because every

company must have to succeed in doing business. One of the vital efforts made to win

the competition in business is through marketing activities, the process of creating

value for customers and build strong relationships with customers with the aim to

capture value from customers in return. The results of marketing activities can be

measured directly from the sale of products or the extent to which the product can be

accepted in the community through the consumers’ purchase decisions of the product.

ABC syrup from PT Heinz ABC Indonesia is one of the major brands of syrup

favored by the community because in addition to delicious and refreshing, ABC

syrup also contains 100% pure sugar with no artificial sweeteners so that more thick

and fragrant. Comes with two variants, squash syrup and treacle, ABC is not alone in

the industry but rather competing with Marjan and several other brands such as

Tjampolay, Marquisa Pohon Pinang, Kurnia, Bangau, Freiss and others. They are

competing to win consumers’ purchase decisions, especially in terms of price and

advertisement. Moreover, the conditions and consumer behavior in Indonesia,

especially capital Jakarta is very selective about the product, especially when the

product is a consumer needs. Here is the data of Top Brand Index, Top of Mind and

Last Usage ABC syrup products quoted from Frontier Consulting Group for the

period of 2007-2014.

Picture 1. Top Brand Index Syrup

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Picture 2. Top Of Mind Syrup

Picture 3. Last Usage SyrupSource: Frontier Consulting Group (2014)

The picture 1, 2 and 3 show that the problems faced by ABC syrup products

are quite serious in maintaining its position as a major brand in syrup industry in

Indonesia. Both in terms of Top Brand, Top of Mind and Last Usage ABC syrup have

a very good influence in 2007 as evidenced by a quite significant gap or difference

compared to the competitors, even though Marjan. However, as time goes by it seems

the company of ABC syrup did not do much to face the changing dynamics of market

appetite nor consumer demand so that the impact on the declined consumer’s

preferences towards product. It is unfortunate that the ABC syrup declined interests

and preferences on consumer purchasing decisions syrup.

The data of ABC syrup consumer’s preference on the downward trend was

also supported by syrup consumer’s opinions stating his choice to consume more any

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other brand syrup than ABC syrup. The form of expression of the opinion is written

in the website that can be seen and read by everyone. Here is consumer opinion data

that researchers quote from Yahoo! Answers and Kaskus.

Picture 4. The opinion of syrup consumers in Yahoo! AnswerSource: Yahoo! Answer (2013)

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other brand syrup than ABC syrup. The form of expression of the opinion is written

in the website that can be seen and read by everyone. Here is consumer opinion data

that researchers quote from Yahoo! Answers and Kaskus.

Picture 4. The opinion of syrup consumers in Yahoo! AnswerSource: Yahoo! Answer (2013)

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other brand syrup than ABC syrup. The form of expression of the opinion is written

in the website that can be seen and read by everyone. Here is consumer opinion data

that researchers quote from Yahoo! Answers and Kaskus.

Picture 4. The opinion of syrup consumers in Yahoo! AnswerSource: Yahoo! Answer (2013)

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Picture 5. The opinion of syrup consumers in KaskusSource: Kaskus (2015)

Price is determined by the cost of the product and the will of the profit margin

to be obtained by the company. Swastha and Irawan (in Novandri, 2010: 2) then

revealed that if the price set by the company appropriately and in accordance with the

purchasing power of consumers, then the selection of a particular product would be

imposed on those products. Just as well the price set by the company is also

considering the value, benefits, and quality of products so that can be accepted by

consumers because there are many products with a higher price even more salable

because they are equivalent to the value, benefits and quality offered. Additionally,

Hermawan Kertajaya (in Arif Rahman, 2010: 149), president of the World Marketing

Association and founder Markplus & Co. said that the price is positioning or image

positioning of a brand product and the perspective of the consumer against it so that

the company must be very careful in setting their selling price. Here are the results of

direct observation the researchers did on December 3 and January 4, 2016 to several

franchises in Jakarta related ABC syrup price comparison with its competitors.

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Table 1. Syrup’s Price Comparison on 2016 at Several Franchises in DKI Jakarta area

Table 1 shows that the price of ABC syrup also has a quite far gap or

difference between highs and lows as well as greater than its main competitor, Marjan

syrup or other brands. This indicates the unfavorable perception related to the value,

benefits and quality that will be obtained by the consumer as well as positioning

obscurity due to the instability of the price level ABC syrup. The price difference is

small or the prices tend to be stable indicates that the product has the positioning in

terms of price is clearly in accordance with the value, benefits and quality of products

offered.

Advertisement is a form of non-individual communication through various

media by the company (Cahyono, 2005: 149). Ads also one of the most important

component in marketing activities, that is, when a product is introduced and

stimulated to consumers continuously in order to create an attraction that led to the

purchase decision and did not rule on the other consumers of the product

(Ramadhani, 2012: 2). Currently, the criterion of a product’s ads that is appealing and

Tabel I.1Perbandingan Harga Sirup Tahun 2016 di Beberapa Waralaba di Wilayah DKI Jakarta

Alfamidi Indomaret HERO Supermarket Transmart Carrefour Food Hall Farmers 99 Market SuperindoKramat asem Utan Kayu Utara 1 Bronbek Kramat asem Pondok Indah Cempaka Putih Kelapa Gading Kelapa gading Pulomas

Syrup - 17,500.00Rp 23,800.00Rp 19,200.00Rp 18,500.00Rp 17,500.00Rp 20,200.00Rp 19,450.00Rp 20,090.00Rp 19,530.00RpSquash 13,500.00Rp - 16,200.00Rp - 12,800.00Rp 11,700.00Rp 12,200.00Rp 13,250.00Rp - 13,275.00RpSyrup 21,500.00Rp 22,000.00Rp 19,700.00Rp 19,300.00Rp 20,500.00Rp 20,700.00Rp 21,100.00Rp 20,250.00Rp 21,190.00Rp 20,693.33Rp

Squash - - 14,200.00Rp 13,200.00Rp 11,800.00Rp 11,700.00Rp - 11,950.00Rp 12,190.00Rp 12,506.67RpPohon Pinang Syrup 25,000.00Rp 25,000.00Rp - 21,850.00Rp - 23,900.00Rp - 22,700.00Rp 22,590.00Rp 23,506.67Rp

Syrup - - - - - 17,300.00Rp - 18,000.00Rp 17,290.00Rp 17,530.00RpSquash - - - 11,500.00Rp - - - 11,250.00Rp - 11,375.00Rp

Tjampolay Syrup - - - - 31,000.00Rp - - 35,900.00Rp 33,490.00Rp 33,463.33RpSarang Tawon Syrup 21,000.00Rp - - - - 20,938.00Rp - 29,000.00Rp - 23,646.00Rp

D'Fresh Syrup - - - - - 18,900.00Rp 28,400.00Rp - 27,490.00Rp 24,930.00RpKurnia Syrup 17,500.00Rp - 20,800.00Rp - - - - 19,750.00Rp - 19,350.00Rp

Buanasari Syrup - - - - 15,435.00Rp - - - 15,435.00RpGK Syrup - 32,000.00Rp 35,500.00Rp - - 34,375.00Rp - - - 33,958.33Rp

Sunquick Syrup 26,500.00Rp - - - - - - 27,090.00Rp 26,795.00RpTropicana Slim Syrup - - - - 27,500.00Rp 28,200.00Rp 31,800.00Rp 31,300.00Rp 30,190.00Rp 29,798.00Rp

Bangau Syrup - - 16,600.00Rp - - - - - - 16,600.00RpKencana Syrup - - - - - - - - 25,290.00Rp 25,290.00RpAlfamart Syrup 14,900.00Rp 14,900.00Rp - - - - - - - 14,900.00Rp

Squash 9,900.00Rp 9,900.00Rp - - - - - - - 9,900.00RpIndomaret Syrup - - - 15,500.00Rp - - - - - 15,500.00Rp

Squash - - - 10,500.00Rp - - - - - 10,500.00RpSuperindo 365 Syrup - - - - - - - - 15,190.00Rp 15,190.00Rp

Sumber : Data diolah oleh penulis

Harga Rata-Rata

ABC

Marjan

Indofood Freiss

AlfamartWaralaba

Merek Jenis

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innovative turns out no longer just limited to the introduction of the advantages of the

product and the benefits of consumption only for consumers, but there is also a moral

life and creativity of processing cinematography from the company that is interesting

or eye catching for the consumer so that they buy the product. In the syrup industry

itself, media crowded used to advertise is television or commercial television

advertising. It is unfortunate that the advertisement of ABC syrup tends monotone or

in other words there are a further creativity and innovation. Moreover, the eve of holy

month of Ramadan which is supposed to focus on sales and promotions including

television commercial ad serving very intensively conducted, ABC syrup ad

packaging or presentation has a fairly mediocre compared with its main competitors,

Marjan syrup.

Picture 6. Pendapat Konsumen Sirup Mengenai Iklan Sirup MarjanSource: Kaskus (2015)

As seen in picture 6 above that Marjan syrup’s advertisement contains its own

positive association in the minds of consumers due to its late-typical. The more

interesting and innovative advertisement form and packaging than ABC syrup ads is

not impossible to contain their linkages with declining consumer preferences in

purchasing decisions on brand of ABC syrup.

Problem Formulation

The formulation of the problem in this study are as follows:

1. How does the description of the perceived price, advertisement and

purchase decision of ABC syrup?

2. Is the perceived price influence on purchase decisions of ABC syrup?

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3. Is the advertisement influence on purchase decisions of ABC syrup?

Tujuan Penelitian

The goal of this research is as follows:

1. To find a description of the perceived price, advertisement and purchase

decisions of ABC syrup’s consumers.

2. To examine empirically the influence perceived price on purchase

decisions of ABC syrup’s consumers.

3. To examine empirically the influence of advertisement on purchase

decisions of ABC syrup’s consumers.

THEORITICAL FRAMEWORK

Perceived Price

According to Schiffman and Kanuk (in Harjati and Venice) (2015: 67)

perceived price is "view or perception regarding the price or how customers perceive

a certain price (high, low, normal) which gives a strong influence on purchase intent

and purchase satisfaction". Kotler and Keller (2012: 386) also stated that purchase

decisions based on how consumers look at the price and the actual price should be in

their assumption or not a price set by the marketer. Consumers also have a price limit

for a particular type of product which if below the lower limit may indicate that the

products are of inferior quality or less feasible and if high above the threshold

indicate that the price is too expensive or not worth bought at such price levels.

According to Kent B. Monroe (2003: 161) dimensions measured in perceived price

are the perceived quality and perceived monetary sacrificed.

Advertisement

Bearden et al (2007: 393) states that advertisement is a marketing

communication elements, which is persuasive, non-personal, paid by sponsors and

disseminated through mass communication channels to promote the use of goods or

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services. Nonpersonal components include mass media advertisement like television

is much preferred by the national advertisers because it is very easy to see and the

ability to demonstrate something and can convey a message to a large group, often at

the same time (Novandri SN 2010: 20). Fandy Tjiptono (2008: 226) argues that

advertisement based on information about the advantages or benefits of products are

structured such that gave rise to the sense of fun that will change someone's mind for

the next purchase. The dimension of advertisement used in this research is an ad

measurement of the effect on consumers; message exposure, consumer attention,

message comprehension, message acceptance and message retention (Bearden, 2007:

399).

Purchase Decision

According Sutisna (2002: 15) the purchase decision is "making a purchase of

a product preceded by their awareness of fulfilling the needs and desires". Marslow

(in Kotler and Keller) (2012: 161) argues that a purchase decision originated from the

stimulus or influence marketing force against him until the purchase decisions of

consumers towards a product. Purchase decision is influenced by several factors

including the price and advertisement (Swastha and Handoko, 2000: 111). The

dimensions used in this research are the stages in the purchase decision process

proposed by Kotler and Keller (2012: 167-173), namely; the message exposure,

consumer attention, message comprehension, message acceptance and message

retention

The Research Model

Picture 7. The Research ModelSource: Data processed by the researcher

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Hipotesis

Based on the formulation of the problem, theoretical studies and theoretical

framework that has been described, the hypothesis in this study are:

Hypothesis 1 : There is an influence of perceived price on purchase decision.

Hypothesis 2 : There is an influence of advertisement on purchase decision.

METODE PENELITIAN

The method used in this research is quantitative methods, the research

methods used to measure the data and typically uses some statistical analysis

(Malhotra, 2010: 141). This research uses descriptive and causal design, which

researchers will conduct testing of hypotheses, and the influence of the independent

variables on the dependent variable is the perceived price and advertisement on

purchase decisions (2010: 72). This research use a survey data collection method

which according to Naresh K. Malhotra (2010: 179) was conducted using structured

questionnaires were then given to a number of samples from a population and

designed to get more specific information from respondents. Based on the time

dimension, this study uses the cross-sectional studies, collecting data on

predetermined sample of population elements only once (2010: 76).

Populasi dan Sampel

The population used in this study is the inhabitants of Jakarta who ever make

purchases ABC syrup in minimarkets or supermarkets located in the DKI Jakarta

province within the last two years. The sampling method used in this research is

purposive sampling with a total of 200 respondents. The sample is limited to the

inhabitants of Jakarta who ever make purchases ABC syrup in minimarkets or

supermarkets located in the DKI Jakarta province within the last two years with hopes

that the sample criteria really meets the criteria according to research to be conducted.

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RESULTS AND DISCUSSIONS

Description of Unit Data Analysis

Table 2. Characteristics of Respondents Based on Age and GenderGender

TotalMale Female

frequency percent frequency percent

Age

< 20 years 6 3.0% 17 8.5% 23

20-30 years 35 17.5% 66 33% 101

31-40 years 13 6.5% 29 14.5% 42

41-50 years 1 0.5% 20 10% 21

> 50 years 2 1% 11 5.5% 13

Total 57 28.5% 143 71.5% 200

Source: Data processed by the researcher

Based on the data presented in table 2, the majority of respondents in this

study is dominated by the female gender by the age of consent, which is 20 s / d 30

years amounted to 66 respondents or 33% of total respondents. The data imply that

the product ABC syrup is a product of household consumption, which is the area of

women adult buyer domination.

Table 3. Characteristics of Respondents by Gender and Job StatusGender

TotalMale Female

frequency percent frequency percent

JobStatus

Students 15 7.5% 18 9.0% 33

Employee 34 17.0% 67 33.5% 101

Entreprenuer 6 3.0% 14 7.0% 20

Housewife 0 0% 43 21.5% 43

Other, Teacher 1 0.5% 1 0.5% 2

Other, Retirement 1 0.5% 0 0% 1

Total 57 28.5% 143 71.5% 200

Source: Data processed by the researcher

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The data in table 3 shows that the number of respondents by gender and

employment status are dominated by women whose status as an employee, as many

as 67 respondents, or by 33.5% of the total respondents. Not much different, with the

status of women respondents as housewives also quite a lot, which amounted to 43

people or 23.5% of total respondents. Based on these data, allegedly majority of

respondents have a major involvement of the purchase decision process ABC syrup

product which is a product of household consumption.

Table 4. Characteristics of Respondents by Monthly Expenses and Job Status

Status Pekerjaan

TotalStudent Employee Entrepreneur HousewifeOther,

TeacherOther,

Retirement

f % f % f % f % f % f %

MonthlyExpenses

< Rp 1.000.000,- 9 4.5% 7 3.5% 3 1.5% 3 1.5% 0 0% 0 0% 22

Rp 1.000.000,- s/dRp 3.000.000,- 23 11.5% 59 29.5% 7 3.5% 23 11.5% 1 0.5% 1 0.5% 114

Rp 3.000.001,- s/dRp 5.000.000,- 0 0% 21 10.5% 3 1.5% 13 6.5% 1 0.5% 0 0% 38

Rp 5.000.001,- s/dRp 8.000.000,- 1 0.5% 8 4% 5 2.5% 3 1.5% 0 0% 0 0% 17

> Rp 8.000.000,- 0 0% 6 3% 2 1% 1 0.5% 0 0% 0 0% 9

Total 33 16.5% 101 50.5% 20 10% 43 21.5% 2 1% 1 0.5% 200

Source: Data processed by the researcher

Based on data in Table 4, it can be said that most respondents in this research

work as employees with monthly expenses ranged between Rp 1.000.000,- s/d Rp

3.000.000,- as many as 59 respondents, or 29.5% of total respondents. This indicates

the possibility for the majority of respondents to do a tightly enough selection of a

product according to their needs.

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Instrument Test

Validity Test

Table 5. Validity Test of Variabel Perceived Price (X1)

No. item statement r count r Table Information

1 0.809 0.361 valid2 0.747 0.361 valid3 0.710 0.361 valid4 0.547 0.361 valid5 0.513 0.361 valid6 0.586 0.361 valid

Source: Data processed by the researcher

Table 5 above shows the validity test results that have been done on the

variable perceived price. It can be concluded that all the items in the questionnaire

statement is valid because the value of rcount > rtable and significantly correlated. The

implication is that these items do not need to be removed or repaired and are

considered able to uncover something that would be measured by a questionnaire in

the study.

Table 6. Validity Test of Variable Advertisement (X2)No. item statement r count r table Information

7 0.497 0.361 valid8 0.644 0.361 valid9 0.701 0.361 valid

10 0.620 0.361 valid11 0.782 0.361 valid12 0.804 0.361 valid13 0.807 0.361 valid14 0.689 0.361 valid15 0.786 0.361 valid16 0.777 0.361 valid17 0.800 0.361 valid18 0.700 0.361 valid19 0.765 0.361 valid20 0.662 0.361 valid21 0.723 0.361 valid

Source: Data processed by the researcher

Table 6 above shows the validity test results that have been done on the

variable advertisement. It can be concluded that all the items in the questionnaire

statement is valid because the value of rcount > rtable and significantly correlated. The

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implication is that these items do not need to be removed or repaired and are

considered able to uncover something that would be measured by a questionnaire in

the study.

Table 7. Validity Test of Variable Purchase Decision (Y)

No. item statement r count r table Information

22 0.634 0.361 valid23 0.577 0.361 valid24 0.570 0.361 valid25 0.748 0.361 valid26 0.664 0.361 valid27 0.512 0.361 valid28 0.668 0.361 valid29 0.801 0.361 valid30 0.723 0.361 valid31 0.835 0.361 valid32 0.921 0.361 valid33 0.852 0.361 valid34 0.844 0.361 valid35 0.803 0.361 valid

Source: Data processed by the researcher

Table 7 above shows the validity test results that have been done on the

variable purchase decision. It can be concluded that all the items in the questionnaire

statement is valid because the value of rcount > rtable and significantly correlated. The

implication is that these items do not need to be removed or repaired and are

considered able to uncover something that would be measured by a questionnaire in

the study.

Reliability Test

Table 8. Reliability Test

No VariablesNilai Cronbach’s

Alpha (α)Information

1 Perceived Price (X1) 0.726 Reliabel

2 Advertisement (X2) 0.930 Reliabel

3 Purchase Decision (Y) 0.927 Reliabel

Source: Data diolah oleh penulis

In Table 8 shows that all the variables tested in this study is reliable because

the value of Cronbach's Alpha (α) is greater than 0.60. Perceived price variable (X1)

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has a value of alpha coefficient of 0726 indicating acceptable reliability. Variable

advertisement (X2) has a value of alpha coefficient of 0.930 indicating good

reliability. Meanwhile, the purchase decision as the dependent variable (Y) has a

coefficient alpha of 0927 which means that the reliability is good.

Basic Assumption Test

Normality Test

Table 9. Normality TestOne-Sample Kolmogorov-Smirnov Test

PerceivedPrice Advertisement Purchase

DecisionN 200 200 200

Normal Parametersa,b Mean 22.58 53.34 48.26Std. Deviation 2.952 8.337 8.224

Most Extreme DifferencesAbsolute .093 .050 .069Positive .093 .046 .069Negative -.067 -.050 -.057

Kolmogorov-Smirnov Z 1.313 .713 .973Asymp. Sig. (2-tailed) .063 .690 .301a. Test distribution is Normal.b. Calculated from data.

Source: Data processed by the researcher

Based on data from Table 9 above regarding normality test One Sample

Kolmogorov - Smirnov were performed using SPSS software for Windows 20,

looked at four variables, namely; perceived price (X1) has a significance value of

0.063, Advertisement (X2) has the significance of 0.690, and the purchase decision

(Y) has a significance value of 0.301. The significant value of these three variables

exceeds 0.05, then it can be said these three variables’ data in the study has a normal

distribution.

According to Naresh K. Malhotra (2010: 237), a good regression model is a

model that has a good residual values normally distributed. In this study, test One

Sample Kolmogorov-Smirnov can be used to test the residual value by correlating the

residual value (residual Unstandarized) with each of the variables using a significance

level of 5% or α = 0:05. Data are expressed in normal distribution if the significance

is greater than 0.05.

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Table 10. Residual Normality TestOne-Sample Kolmogorov-Smirnov Test

UnstandardizedResidual_1

UnstandardizedResidual_2

PurchaseDecision

N 200 200 200

Normal Parametersa,b Mean 0E-7 0E-7 48.26Std. Deviation 6.56347735 6.36192602 8.224

Most ExtremeDifferences

Absolute .041 .046 .069Positive .032 .032 .069Negative -.041 -.046 -.057

Kolmogorov-Smirnov Z .582 .651 .973Asymp. Sig. (2-tailed) .888 .790 .301a. Test distribution is Normal.b. Calculated from data.

Source: Data processed by the researcher

Based on data from Table 10, it can be looked at four variables, namely;

Unstandardized Residual_1 have a significance value 0888, 0790 unstandardized

Residual_2 significance, and purchasing decisions (Y) has a significance value of

0.301. The significant value of these three variables are greater than 0.05, then it can

be said these three variables’ data in the study with normal distribution.

Linearity Test

Table 11. Linearity Test

ANOVA Table

Sum ofSquares df Mean

Square F Sig.

Purchase Decision *Advertisement

BetweenGroups

(Combined) 7147.620 35 204.218 5.305 .000

Linearity 5406.134 1 5406.134 140.444 .000Deviationfrom Linearity 1741.486 34 51.220 1.331 .123

Within Groups 6312.860 164 38.493Total 13460.480 199

Source: Data processed by the researcher

ANOVA Table

Sum ofSquares df Mean

Square F Sig.

Purchase Decision *Perceived Price

BetweenGroups

(Combined) 6188.952 15 412.597 10.440 .000Linearity 4887.712 1 4887.712 123.680 .000Deviationfrom Linearity 1301.240 14 92.946 2.352 .005

Within Groups 7271.528 184 39.519Total 13460.480 199

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The data in table 11 contains the results linearity test performed on

independent and dependent variables in this study. The test results of linearity

perceived price variable (X1) on purchase decisions (Y) indicates a value of 0.000 or

less than 0.05. This may indicate a linear relationship significantly in perceived price

variable (X1) on purchase decisions (Y). Further, test results of linearity between

advertisement variable (X2) on purchase decisions (Y) indicates a value of 0.000 or

less than 0.05. This may indicate a significant linear relationship to the variable

advertisement (X2) on purchase decisions (Y).

Multicolinearity Test

Table 12. Multicolinearity TestCoefficientsa

Model UnstandardizedCoefficients

StandardizedCoefficients

t Sig. Collinearity Statistics

B Std. Error Beta Tolerance VIF

1

(Constant) 2.385 3.395 .703 .483PersepsiHarga 1.019 .168 .366 6.067 .000 .703 1.422

Iklan .429 .060 .434 7.201 .000 .703 1.422a. Dependent Variable: Keputusan PembelianSource: Data processed by the researcher

Multicolinearity test results in table 12 shows the value of the independent

variable tolerance; perceived price (X1) and advertisement (X2) of 0703 or more than

0.1. Then, VIF value of the perceived price variable (X1) and advertisement, (X2) is

at 1,422. or less than 10. Under the terms free from multicolinearity of the foregoing,

it can be stated there is no multicollinearity in independent variables X1 and X2. The

implication is that there is no correlation or linear relationship between the two

independent variables.

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Heterscedasticity Test

Table 13. Heterscedasticity Test

Coefficientsa

Model UnstandardizedCoefficients

StandardizedCoefficients

t Sig.

B Std. Error Beta

1(Constant) 3.348 2.156 1.553 .122Persepsi Harga .155 .107 .123 1.453 .148Iklan -.044 .038 -.099 -1.175 .241

a. Dependent Variable: RES4Source: Data processed by the researcher

The results in table 13 above shows the significant value of the perceived

price variable (X1) is for 0148 and the advertisement (X2) of 0241. Both independent

variables have a significance value greater than 0.05 which means there are no

symptoms of heteroscedasticity in X1 and X2 data.

Analisis Regresi Linear Berganda

t-Test

Table 14. t-Test The Influence of Perceived Price and Advertisement on Purchase Decision ofABC SyrupCoefficientsa

Model UnstandardizedCoefficients

StandardizedCoefficients

t Sig.

B Std. Error Beta

1(Constant) 2.385 3.395 .703 .483Persepsi Harga 1.019 .168 .366 6.067 .000Iklan .429 .060 .434 7.201 .000

a. Dependent Variable: Keputusan PembelianSource: Data processed by the researcher

Based on t test in Table 14, the variable perceived price (X1) has a

significance value of tcount of 0000 or smaller than the significance level was set at

5% (α = 0.05), and tcount of 6,067 or greater than ttable which is equal to 1,972. This

means that Ho is rejected and Ha accepted. The implication is that the perceived

price had partial significant influence on purchase decisions ABC syrup.

Furthermore, advertisement variable (X2) have a significance value of tcount of 0000

or smaller than the significance level was set at 5% (α = 0.05), and tcount of 7,201 or

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larger than the TTable which amounted to 1,972. This means that Ho is rejected and

Ha accepted. The implication is that the ad had partial significant influence on

purchase decisions ABC syrup.

Multiple Regression Equation

The regression equation that can be made based on Table 14 are as follows:

Y = a + bX1 + bX2

Y = 2.385 + 1.019X1 + 0.429X2

Information:

Y = Purchase Decision

a = Constant

b = Regression Coefficients

X1 = Perceived Price

X2 = Advertisement

A constant value of 2.385 indicates if the perceived price variable (X1) and

advertising (X2) is 0, then the purchasing decisions (Y) will be valued at 2.385.

Regression coefficient value perceived price variable (X1) of 1.019 indicates

if the perceived price variable (X1) increased one unit and the values of

advertisement (X2) variable is steady, then the purchase decision variable (Y) will be

increased by 1,019. The coefficient is positive, meaning a positive influence between

perceived price variable (X1) and the purchase decision variable (Y).

Regression coefficient value advertisement (X2) of 0.429 indicates if the

variable advertisement (X2) increased the one unit and the values of perceived price

variable (X1) is steady, then the purchase decision variable (Y) will increase by 0429.

The coefficient is positive, meaning a positive influence between advertisement

variable (X2) and the purchase decision variable (Y).

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F Test

Table 15. F Test The Influence of Perceived Price and Advertisement on PurchaseDecision of ABC Syrup

ANOVAa

Model Sum of Squares df Mean Square F Sig.

1

Regression 6674.173 2 3337.086 96.872 .000b

Residual 6786.307 197 34.448

Total 13460.480 199a. Dependent Variable: Keputusan Pembelianb. Predictors: (Constant), Iklan, Persepsi Harga

Source: Data processed by the researcher

F test results in Table 15 shows that the value of Fcount significance is 0000 or

smaller than the significance level was set at 5% (α = 0.05). Furthermore, the value of

Fcount is 96.872 or greater than Ftable which amounted to 3,042. This means the

perceived price and advertisement has a significant influence jointly on purchase

decisions ABC syrup.

Determination Coefficients

Table 16. Determination Analysis The Influence of Perceived Price and Advertisement onPurchase Decision of ABC Syrup

Model SummaryModel R R Square Adjusted R

SquareStd. Error of the

Estimate1 .704a .496 .491 5.869a. Predictors: (Constant), Iklan, Persepsi Harga

Source: Data processed by the researcher

Based on the results in Table 16, the value of R2 (Adjusted R square) is 0.491,

or 49.1%. This value explains that the variation of the independent variables used in

the model, perceived price (X1) and advertisement (X2) are able to explain amounted

to 49.1% of the variation in the dependent variable, purchase decision (Y). While the

remaining 50.9% is explained by other variables that is not included in this research

model such as brand image, product quality, distribution channels and promotion.

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KESIMPULAN DAN SARAN

Kesimpulan

After testing the primary data on the influence of the perceived price and

advertisement on purchase decisions, it can be concluded as follows:

1. The first hypothesis that shows there are significant influence of perceived

price variable on purchase decision is accepted because it has value of tcount

6,067 > ttable 1,972 and significancy value of 0000 < 5% (α = 0.05). These

results support a previous study conducted by Azhar Ahmad, Sallehuddin

Mohd Noor Che Che Aniza Wel (2014) who found that the perceived price

significantly influence purchasing decisions.

2. The second hypothesis that shows there are significant perceived price

variable to the purchasing decision is accepted because it has value of tcount

7,021 > ttable 1,972 and significancy value of 0000 <5% (α = 0.05). These

results support a previous study conducted by Anwar Nuris, Muslichah Erma

Widiana and Susi Tri Wahyu (2015) who found that advertisement have a

significant influence on purchasing decisions.

Suggestions

The company PT Heinz ABC Indonesia can create a more attractive tvc

advertisement ABC syrup than other syrup brand advertisement to get more attention

of potential customers. In addition, ABC syrup advertisement must also may affect

consumers in the process of needs recognition to consume syrup ABC after watching

and can also always be remembered emotionally by consumers then foster a sense of

repurchase the ABC syrup product.

The company PT Heinz ABC Indonesia is also expected to improve their

product quality to a better suit consumer tastes than other syrup brands. No less

important, the company also expected to formulate a better marketing strategy for

ABC syrup to foster consumer satisfaction and confidence in order to do a better

recommendation of ABC syrup product to other consumers.

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