This study aimed to determine the direct and indirect effect of product quality and price on purchasing decisions through buying interest at PT. Bintang Anugrah Sehati. The design of this research is explanatory through hypothesis testing to test the causal relationship between the variables of product quality, price, buying interest and purchasing decisions. The data used in this study is primary data by surveying by distributing questionnaires to 162 customers of PT. Bintang Anugrah Sehati. The data analysis method used is the sobel test method and path analysis. The results showed that buying interest can be as a mediating variable on product quality and price on purchasing decisions of PT. Bintang Anugrah Sehati, the value of the total effect is compared to the direct effect of product quality on purchasing decisions and price on purchasing decisions. This means that by increasing product quality and price, customer buying interest also increases, followed by an increase in purchasing decisions.
Every activity that involves a human, machine, and material factors that go through the stages of the process has a risk of danger with different levels that allow accidents and occupational diseases to occur. The risk of accidents and occupational diseases is caused by a source of danger resulting from work activities in the workplace. The workforce is a company asset that is very important in the production process, so it is necessary to strive so that the degree of health is always in an optimal state. According to Law Number 1 of 1970 concerning Occupational Safety Chapter X article 14 section c, the management must provide free of charge all required personal protective equipment (PPE) for workers under their leadership and provide for everyone else who enters the workplace. According to the Regulation of the Minister of Manpower and Transmigration Number 08/MEN/2010. Personal Protective Equipment (PPE) is a tool that can protect a person whose function is to isolate part or all of the body from potential hazards in the workplace. PPE is a valuable product to protect workers. So this product is required to have good resistance in protecting workers ranging from Helmets, Glasses, Masks, Full Body Harness, Earplugs, Safety Shoes, etc. PPE must comply with the Indonesian National Standard (SNI) or applicable international standards.
PT. Bintang Anugrah Sehati (PT. BAS) is a company engaged in the distribution of PPE sales such as Helmets, Glasses, Masks, Full Body Harness, Earplugs, Shoes, etc. Each product has its function, starting from Helmets as head protection from falling objects or collisions, Glasses as eye protection from dust, sun exposure and floating objects, Masks as respiratory protection from harmful particles, smoke or odors of hazardous chemicals, Full Body Harness as a protector from falling hazards, Earplugs as ear protection from noise in a work area and Safety Shoes as a foot protector from falling objects, collisions or spikes. The customers served are customers throughout Indonesia from various business fields such as Mining, Oil & Gas, Power Generation, Industry and Construction.
Consumers have a strong buying interest in PPE related to the prevention of the coronavirus pandemic (COVID-19) so that in the next stage it goes into purchasing decisions related to regulations from the government that require the use of PPE in the form of masks by the general public and recommendations from the WHO (World Health Organization) in the interim guidance on April 6, 2020, for the use of medical masks, goggles, face shields and gowns for personnel involved in the distribution and management of PPE and public health authorities and persons in covered health and home care services in decisions regarding the use and prioritization of PPE.
Kotler and Keller [1] explain that basic psychological processes play an essential role in understanding how consumers make their purchasing decisions. Innovative companies strive to understand the customer is buying decision process entirely, all of the customer experiences in learning, selecting, using, and even getting rid of products. Nafilah [2] said that consumer characteristics would affect consumer behavior in making purchases so that it also affects what products to buy, consumers will first decide to buy. Zhahir [3] defines a high purchase decision as when the decision to purchase is of high value, quantity and frequency. The high purchasing decisions on the products offered are expected to affect the company's business continuity. Product quality is one of the important factors that can influence purchasing decisions. According to Kotler and Keller [4], product quality is the totality of features and characteristics of a product or service that depend on its ability to satisfy stated or implied needs. The better the quality of a product, it will increase consumers' choose and then make a purchase. A product can be of high quality if the product can meet and satisfy customer needs. Consumers want to get products of good quality according to the price paid. Not a few consumers also think that an expensive product is a quality product. Price is one of the tools companies can use to face the market, either by making direct consumer interest, making purchasing decisions and retaining customers or against competitors [5].
PT. BAS always prioritizes the quality of the PPE products it sells but the price offered by PT. BAS is relatively acceptable to all consumers. PT BAS sets the price is expected to increase consumer buying interest which will then continue to consumer purchasing decisions. Consumers want to get products of good quality according to the price paid. Not a few consumers also think that expensive products are quality products, but even though PT. BAS always prioritizes quality, and the prices offered are relatively affordable for all people. PT BAS sets the price is expected to increase consumer buying interest which will then continue to consumer purchasing decisions.
Purchasing Decision
According to Kotler and Keller [1], purchasing decisions are the process of formulating alternative actions to indicate the selection of a particular alternative to make a purchase. Dapas [6] explains that consumers can feel satisfied or dissatisfied after consumers make a purchase decision and will engage in behavior after making a purchase decision that remains attractive to the market.
According to Swastha and Irawan [7], the buying decision structure is divided into seven principal components, namely:
Decisions about product types; Consumers can decide to buy products or use their money for other needs. In this case, the company should focus its attention on the people interested in buying the product and other alternatives they are considering.
Decisions about product form; Consumers can make decisions to choose a particular product form. The decision concerns the size, quality, sound, style, and so on that can be considered by every consumer. In this case, the company must conduct marketing research to find out consumer preferences about the product in question to maximize purchasing decisions.
Decisions about brands; Consumers have to make decisions about which brand to buy. Each brand has its differences. In this case, the company must know how consumers choose a brand.
Decisions about the seller; Consumers must make a decision where the product will be purchased. In this case, manufacturers, wholesalers, and retailers must know how consumers choose a particular seller.
Decisions about the number of products; Consumers can decide how much product to buy at that time. In this case, the company must prepare the number of products according to the different wishes of the buyers.
Decisions about when to buy; Consumers can make decisions about when to make a purchase. This problem will concern the availability of money to buy the product. Therefore, companies must know the factors that influence consumer decisions in determining the time of purchase.
Decisions on the mode of payment; Consumers must decide the method or method of payment for the purchased product, whether in cash or installments. In this case, the company must know the buyer's desire for the payment method.
Based on the description above, it is synthesized that purchasing decisions are the stages of the decision process where consumers make product purchases.
Product quality
Kotler and Armstrong [1] say that product quality is a potential strategic weapon to beat competitors. The better the quality of the product contained in a product, the more attractive consumers will be to make a purchase. If there is a quality that is guaranteed quality in a product, then consumers will not look at other products and will continue to buy goods that have guaranteed quality. Kotler and Armstrong [4] reveal that product quality is a product or service characteristic that depends on its ability to satisfy stated or implied customer needs.
According to Kotler [4], product quality can be included in 9 indicators, namely:
Shape: Products can be clearly distinguished from others based on the product's shape, size, or physical structure.
Product characteristics: Secondary or complementary characteristics helpful in adding to the essential functions related to product choices and their development.
Performance: Relates to the functional aspects of an item and is the main characteristic that customers consider in purchasing the item.
Accuracy/conformity: Relates to the degree of conformity with pre-determined specifications based on customer requirements. Conformity reflects the degree of accuracy between the product design characteristics and the standard quality characteristics that have been set.
Durability: Relates to how long a product can be used.
Reliability: Relates to the probability or possibility of an item successfully carrying out its function every time it is used within a certain period and under certain conditions.
Ease of repair: Regarding the ease of repair of the product if it is damaged. Ideally, the product will be easily repaired by the user if it breaks.
Style: The appearance of the product and the consumer's impression of the product.
Design: The product's overall features will affect the appearance and function of the product against consumer desires
Based on the description above, it is synthesized that product quality is a potential strategic weapon to beat competitors. The better the quality of the product contained in a product, the more attractive consumers will be to make a purchase.
Price
The price of a product is a measure of consumers to make a purchase. The price itself is the value expressed in currency units as a medium of exchange for an item. According to Kotler and Armstrong [4], price is the amount of money charged for a product or service or the amount of value that customers exchange for the benefits of owning or using a product or service. Price is used as a benchmark for the suitability of product benefits. Prices are subjective because prices are also motivated by each individual's economic and environmental conditions, which, of course, is different. Not infrequently, consumers are also willing to spend much money to get a product or service. This may happen because consumers perceive the product as a quality product, so it is natural to require a higher sacrifice. Hidayah [8] explains that price is an exchange rate equated with money or other goods for the benefits obtained from an item or service for a person or group at a particular time and place.
According to Artika and Sasi [9], a price is generally set for:
Increase sales
Maintain and improve market share
Stabilize the price level
Return on investment
Achieve maximum profit
Based on the description above, it is synthesized that price is the amount of money (possibly plus some goods) needed to obtain some combination of a product and the accompanying service.
Buying Interest
The needs and desires of consumers for goods and services evolve and influence their behavior in purchasing products. Buying interest is obtained from a learning process and a thought process that forms a perception. This buying interest creates a motivation that continues to be recorded in the minds of consumers and becomes a powerful desire which, at the end, when a consumer has to fulfill his needs, will actualize what is in the consumer's mind.
According to Hidayah [8], buying interest is when consumers look for information to compare and think about the possibility that the product can meet their needs. In contrast, according to Fitranty, buying interest is obtained from the learning process and thought processes that form perceptions. The buying interest that arises creates a continuously recorded motivation in his mind, which in the end, when a consumer has to fulfill his needs, he will actualize what is in his mind.
According to Ferdinand [10], buying interest can be identified through:
Transactional interest, namely a person's tendency to buy a product.
Referential interest, namely the tendency of a person to refer products to others.
Preferential interest, which is an interest that describes the behavior of someone who has a primary preference for the product. This preference can only be overridden if something happens to the product of its preference.
Explorative interest this interest describes the behavior of someone who is always looking for information about the product he is interested in and looking for information to support the favorable properties of the product.
Based on the description above, it is synthesized that buying interest is how likely it is for consumers to buy a brand or how likely it is for consumers to switch from one brand to another.
Research Design
The design of this research is explanatory through hypothesis testing to test the causal relationship between the variables of product quality, price, buying interest, and purchasing decisions. The data used in this study is primary data by surveying by distributing questionnaires to customers at PT. Bintang Anugrah Sehati. The data analysis method used is the descriptive analysis method and path analysis. Descriptive analysis is used to describe each respondent's statement based on each indicator in each of the variables studied. In contrast, path analysis is used to test hypotheses to obtain a direct or indirect causal relationship between product quality, price, buying interest, and purchasing decisions.
Population and Sample
The population is a generalization area consisting of objects or subjects with specific qualities and characteristics set by researchers to be studied and drawn conclusions [11]. The population used in this study were all customers of Personal Protective Equipment (PPE) at PT. Bintang Anugrah Sehati as many as 270.
The sample is part of the number and characteristics possessed by the population [11]. There are various kinds of sampling techniques used to determine the research sample. Sampling techniques are grouped into two types, namely probability sampling and non-probability sampling. Sampling in this study using a probability sampling technique. While the method for taking samples using simple random sampling. In this study, the sample used was 162 PPE customers.
Effect of Product Quality and Price on Purchase Intention (Sub Structure 1)
Based on the results of data processing for sub-structure 1, the structural equations in chapter sub-structure 1 are obtained, as follows:
Y1 = 0,523 X1 + 0,333 X2 + e1
Based on the structural equation in substructure 1 above, it can be interpreted as follows:
The direct effect of product quality on customer buying interest based on the table above is 0.523
The direct effect of price on customer buying interest based on the table above is 0.333
As for the magnitude of the simultaneous influence of product quality and price on customer buying interest, the data processing results of R square (R2) numbers are 0.690. This number shows that the simultaneous influence of product quality and price on customer buying interest is 69%. Other factors influence the remaining 31%. In other words, the buying interest variable can be explained using the product quality and price variables of 69% while other variables outside the research model explain the 31% effect.
Based on the results of the path analysis test for sub-structure 1 (X1 and X2 against Y1), each of the values obtained:
ry1x1 = 0,523
ry1x2 = 0,333
The magnitude of the residual coefficient ry1e1 = 1-0,690 = 0,310
Influence of Product Quality, Price and Purchase Interest on Purchase Decisions (Sub Structure 2)
Based on data processing for sub structure 2, the results of the structural equation for sub structure 2 are obtained as follows:
Y2 = 0,258 X1 + 0,430 X2 + 0,239 Y1 + e1
Based on the structural equation in substructure 2 above, it can be interpreted as follows:
The effect of product quality on purchasing decisions based on the table above is 0.258
The effect of price on purchasing decisions based on the table above is 0.430
The effect of buying interest on purchasing decisions based on the table above is 0.239.
As for the magnitude of the simultaneous influence of product quality, price and buying interest on purchasing decisions, the results of data processing numbers R square (R2) is 0.767. The figure shows that the effect of product quality, price and satisfaction simultaneously on purchasing decisions is 76.7%. Other factors influence the remaining 23.3%. In other words, the purchasing decision variables can be explained using the variables of product quality, price and satisfaction of 76.7%, while other variables outside this research model explain the effect of 23.3%. Based on the results of the path analysis test for sub-structure 1 (X1, X2 and Y1 to Y2) each obtained the following values:
ry2x1 = 0,258
r y2x2 = 0,430
r y2y1 = 0,239
The magnitude of the residual coefficient ry2e2 = 1-0,767 = 0,233
Based on the results of the path coefficients in sub-structure 1 and sub-structure 2, the overall path analysis diagram depicting the influence of product quality and price on purchase intention and its impact on purchasing decisions can be explained as follows:
Direct Effects
The effect of product quality on customer buying interest = 0,523
The effect of price on customer buying interest = 0.333
The effect of product quality on purchasing decisions = 0.258
The effect of price on purchasing decisions = 0.430
The effect of buying interest on purchasing decisions = 0.239
Indirect Effect
The effect of product quality on purchasing decisions through buying interest = 0.125
The effect of price on purchasing decisions through buying interest = 0.080
Total Effect
The effect of total product quality on customer buying interest is 0.258. The indirect effect of product quality on purchasing decisions through buying interest is 0.125, so the total effect is 0.384 (0.258 + 0.125 = 0.384)
The effect of total price on customer buying interest is 0.430. The indirect effect of price on purchasing decisions through buying interest is 0.080, so the total effect is 0.510 (0.430 + 0.080 = 0.510).
Based on the results of the study, it is described as follows:
There is a direct influence of product quality on customer buying interest
The influence of product quality on customer buying interest in PT. Bintang Anugrah Sehati is 0.523 and partially, there is a significant direct effect of product quality on customer buying interest at PT. Bintang Anugrah Sehati, where the Significance t of the X1 variable is 0.000 smaller than the actual level or 0.000 <0.05 so that Ho is rejected or Ha. This is following previous research which states that there is an effect of product quality on customer buying interest. This means that changes in product quality improvement are in a positive and significant direction towards increasing customer buying interest.
There is a direct influence of price on customer buying interest
The big influence of price on the buying interest of PT. Bintang Anugrah Sehati is 0.333 and partially, there is a significant direct effect of price on customer buying interest at PT. Bintang Anugrah Sehati where the Significance t of the X2 variable is 0.000 smaller than the real level or 0.000 <0.05, so that Ho is rejected or Ha. This is following previous research which states that there is an influence of price on customer buying interest. This means that the price can increase customer buying interest positively and in real direction towards increasing customer buying interest. Price is one of the determinants of product selection which will later affect purchase interest, this is because the right price according to people's purchasing power affects the purchase intention of a product that the customer desires.
There is a direct influence of product quality on purchasing decisions
The direct influence of product quality on purchasing decisions of PT. Bintang Anugrah Sehati is 0.258 and partially, there is a significant direct effect of product quality on purchasing decisions at PT. Bintang Anugrah Sehati, where the Significance t of the X1 variable is 0.004 smaller than the fundamental level or 0.004 <0.05 so that Ho is rejected or Ha. This is following previous research which states that there is a link between product quality and purchasing decisions. This means that changes in product quality improvement in a positive direction significantly increase purchasing decisions.
There is a direct influence of price on purchasing decisions
The direct influence of price on purchasing decisions of PT. Bintang Anugrah Sehati is 0.430 and partially, there is a significant direct effect of price on purchasing decisions at PT. Bintang Anugrah Sehati where the Significance t of the X2 variable is 0.000 smaller than the whole level or 0.000 <0.05, so that Ho is rejected or Ha. This is supported by previous research stating that there is a price effect on purchasing decisions.
There is a direct influence of customer buying interest on purchasing decisions
The influence of buying interest on purchasing decisions of PT. Bintang Anugrah Sehati is 0.239 and partially, there is a significant direct effect of buying interest on purchasing decisions at PT. Bintang Anugrah Sehati where the Significance t of the X1 variable is 0.001 smaller than the actual level or 0.001 <0.05, so that Ho is rejected or Ha. This is supported by previous research, which states that there is an influence of buying interest on purchasing decisions. This significant influence means that the better and the increased purchase interest is given to customers, the purchasing decisions will increase. On the other hand, the lower the customer is buying interest is given to the customer, the lower the purchase decision.
There is an indirect effect of product quality on purchasing decisions through customer buying interest as a mediating variable
The indirect influence of product quality on purchasing decisions through customer buying interest at PT. Bintang Anugrah Sehati is (0.523) x (0.239) = 0.125 and the calculation results obtained a p-value of 0.001 which is smaller than the real level or 0.001 <0.05. So it can be concluded that there is a mediating effect between product quality on purchasing decisions through buying interest. The indirect effect of product quality on purchasing decisions through buying interest is not greater than the direct effect. The buying interest variable is effective as a variable that mediates between product quality variables and purchasing decisions.
There is an indirect effect of price on purchasing decisions through customer buying interest as a mediating variable
The large influence of non-price on purchasing decisions through customer buying interest at PT. Bintang Anugrah Sehati is (0.333) x (0.239) = 0.080 and the calculation results obtained a p-value of 0.006 smaller than the real level or 0.006 <0.05. So it can be concluded that there is a mediating effect between price on purchasing decisions through buying interest. The indirect effect of price on purchasing decisions through buying interest is not greater than the direct effect. The buying interest variable is effective as a variable that mediates between the price variable and purchasing decisions. This means that if the company gives a good price to each customer, the customer tends to be satisfied. Furthermore, it is also proven that the price will immediately affect the purchase decision seen from the results of data analysis that the price has a direct positive effect on purchasing decisions. The results of the further analysis indicate that price has a significant effect on purchasing decisions through customer buying interest. This study indicates that customer buying interest can be said to be a mediating variable on product quality and price on purchasing decisions of PT. Bintang Anugrah Sehati can be seen from the magnitude of the total effect compared to the direct effect of product quality on purchasing decisions and price on purchasing decisions. This means that by increasing product quality and price, customer buying interest also increases, followed by an increase in purchasing decisions.
Based on the results of research and data processing, it can be concluded that:
Product quality has a significant and positive direct influence on buying interest at PT. Bintang Anugrah Sehati. This shows that product quality can explain buying interest. This means that if the quality of the product is getting better, the buying interest will be better. In this study, the correlation between product quality and purchase intention is included in the category of strong correlation.
Prices have a significant and positive direct effect on buying interest in PT. Bintang Anugrah Sehati. This means that the more affordable the price, the better the buying interest will be. In this study, the correlation between price and purchase intention is included in the strong category.
Product quality has a significant and positive direct influence on purchasing decisions at PT. Bintang Anugrah Sehati. This means that if the quality of the product is getting better, the purchasing decision will also be better and shows that the product's quality can explain the purchase decision. In addition, in this study, the correlation between product quality variables on purchasing decisions is quite strong.
Price has a significant and positive direct influence on purchasing decisions at PT. Bintang Anugrah Sehati. This shows that the price can explain the purchase decision, meaning that the more affordable the price, the better the purchasing decision. In this study, the correlation between price and purchasing decisions is included in the category of strong correlation.
Purchase intention has a significant and positive direct influence on purchasing decisions at PT. Bintang Anugrah Sehati and shows that buying interest can explain purchasing decisions. This means that if the buying interest is getting better, the purchase decision will also be better. In this study, the correlation between buying interest on purchasing decisions is included in the category of strong correlation.
Based on the results of the mediation test or Sobel test, the results show that there is an intervening effect of buying interest variables in the relationship between product quality variables and purchasing decisions as partial mediation, which means that the relationship between product quality and purchasing decisions will remain significant whether through or not through buying interest. The direct effect of product quality on purchasing decisions is greater than the indirect effect of buying interest.
Based on the results of the mediation test or Sobel test, the results showed a significant influence of intervening buying interest in the price relationship on purchasing decisions, which means that buying interest (Z) mediates the price variable (X1) on purchasing decisions (Y). The direct influence of the price variable on purchasing decisions has a more significant influence than the indirect effect through buying interest.
Suggestions
Based on the conclusions above, the following suggestions can be proposed:
On the product quality variable, the suggestions given by researchers at PT. Bintang Anugrah Sehati is the first, namely in product attractiveness, if possible, the company can develop PPE products, such as issuing new models and color combinations to attract more customers' attention. The next suggestion, the company can innovate so that when customers enter the outlet. Furthermore, the company should be able to further improve the quality of its products by carrying out strict supervision on the production department so that customers enjoy and want to make repeat purchases. Furthermore, regarding product variants, companies should innovate new products by increasing the variants and prices and developing innovations by adding more innovative product variations, for example, from specific materials.
In the price variable, several suggestions or inputs can be taken into consideration for PT. Bintang Anugrah Sehati, namely regarding the suitability of price with product quality, companies can improve product quality through new product innovations and improve product quality control to maintain existing products. Then the following suggestion is that the company needs to consider the suitability of the price with the benefits received by the customer, where the respondent wants the price paid following the benefits received. Therefore, in determining prices, companies need to adjust the prices of other or competitors so that customers do not judge the company's product prices to be more expensive, so it is hoped that buying interest and customer purchasing decisions against the company can increase.
In the variable of buying interest, the advice given to PT. Bintang Anugrah Sehati, namely companies, need to increase customer buying interest by fulfilling the expected desires. It can be done by increasing the suitability of the price and quality of the product that the customer expects. So that when customers feel the price paid is following the expected product quality, it can make customers happy and want to repurchase and make customers want to find information about new menus and promotions from other people's recommendations and social media, even customers can provide product recommendations to other people.
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