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Nugroho Setio Aji, Achmad Helmy Djawahir, Ainur Rofiq

THE INFLUENCE OF PRODUCTS AND


PROMOTIONS ON PURCHASING DECISIONS
MEDIATED IN PURCHASE MOTIVATION

JAM Nugroho Setio Aji


17, 1 Master of Management, Faculty of Economics and Business Universitas Brawijaya
Received, July 2018 Achmad Helmy Djawahir
Revised, October 2018 Ainur Rofiq
September 2018 Faculty of Economics and Business Universitas Brawijaya
December 2018
Accepted, December 2018

Abstract: This study aims to test and analyze the effect of product and promotion on
buying decision mediated purchasing motivation. This research is quantitative research
with explanatory research approach. This research is conducted on a fixed consumer who
partnered with PT. TrakindoUtama Surabaya more than three years amounted to 58 respon-
dents. Data collection using questionnaire and literature review with WarpPLS version 6.0
analysis tool. The results of the study showed that the direct effect of product influence on
purchase motivation and the influence of promotion on purchasing motivation had a strong
significant influence. Furthermore, the influence of the product on purchasing decisions
and the influence of promotion on purchasing decisions have a significant weak influence.
Next, the effect of purchasing motivation on purchasing decisions has a significant weak
influence. Also, indirectly the motivation of purchase can mediate the effect of the product
on purchasing decisions because it has a strong significant influence. However, the indi-
rect effect of purchase motivation cannot mediate the influence of promotion on purchas-
ing decisions, because it has a weak significant influence.

Keywords: Product, Promotion, Purchase Motivation, Purchase Decision, Consumer


behaviour.

Cite this article as: Aji, N. S., Achmad H. D., and Ainur R. 2019. The Influence of Products
and Promotions on Purchasing Decisions Mediated in Purchase Motivation. Jurnal Aplikasi
Manajemen, Volume 17, Number 1, Pages 152–17. Malang: Universitas Brawijaya. http://
dx.doi.org/10.21776/ub.jam.2019.017.01.17
Journal of Applied
Management (JAM)
Volume 17 Number 1,
March 2019 The heavy equipment indus- from the needs of consumers in general in fulfilling
Indexed in Google Scholar
try is one of the vital sectors needs, such as the needs contained in manufactur-
in the economy. Heavy ing and retail have different needs characteristics
equipment is a large machine with the needs needed for special consumers en-
tool, whose function is de- gaged in construction. Heavy equipment is a spe-
Corresponding Author:
signed to perform construc- cial need, where the product has its specifications
Nugroho Setio Aji, Master of tion functions, namely mining, each type, more specific, has a different function
Management, Faculty of Eco-
nomics and Business Universi- logging / forestry, open land, each type, and has special consumers who are en-
tas Brawijaya, DOI: http:// palm oil, and coal. The ob- gaged in construction (Agustiono, et al., 2016).
dx.doi.org/10.21776/ub.jam.
2019.017.01.17 ject under study is different

152 JOURNAL OF APPLIED MANAGEMENT 152VOLUME 17 NUMBER 1 MARCH 2019


The Influence of Products and Promotions on Purchasing Decisions Mediated

PT. TrakindoUtama Surabaya is a company that LITERATURE REVIEW


sells a variety of heavy equipment. In marketing, Product
consumer behaviour has a different point of view in
The product is something that is needed by con-
deciding to buy goods, especially in heavy equip-
sumers that can be accommodated by goods or ser-
ment purchasing decisions, where a consumer en-
vices that can be offered to the market to satisfy
gaged in construction must be careful and fast in
needs (Armstrong and Keller, 2011). Products can
deciding to buy heavy equipment. The purchase
be said to be something that can be offered to the
decision is the consumer has the intention to buy
market to fulfil the wants or needs, including physi-
the desired item (Schiffman and Kanuk, 2004).
cal goods, services, experiences, events, people,
Another driving factor is the purchase motivation.
places, properties, organizations, information, and
Purchasing motivation is thdriving force of con-
ideas (Kotler and Keller, 2016). The relationship
sumers to buy or interest in buying an item or ser-
between the product and the purchase motivation is
vice. Motivation is influenced by three components,
supported by Nwankwo, et al. (2014); Deebhijarn
namely attitude (attitude), subjective norms (sub-
(2016). However, different results have been made
jective norm) and perception of behavioural control
by Supriyadi, et al. (2016) does not support. While
(perceived behaviour control) (Ajzen, 1991). As for
the product relationship with purchasing decisions
other factors that can be used as a reference to
is supported by Hasan, et al. (2016); Indumathi and
buying the heavy equipment, namely Products.
Dawood (2016); Azzadina, et al. (2012); Agustiono,
The product is anything that can be offered to
et al. (2016); and research conducted by Junaidi
the market to get attention, be bought, used, or con-
and Dharmmesta (2002) does not support.
sumed that can satisfy the desire or need (Armstrong
and Kotler, 2011). The product in question is a heavy
Promotion
equipment product that can be seen from product
features, product quality and product reliability of Promotion is a part of marketing strategy,
Armstrong and Keller (2011). Also, there are pro- where promotion has a function to provide informa-
motions conducted by PT. Trakindo Utama tion, persuade, and remind consumers both directly
Surabaya. and indirectly of a product sold (Kotler and Keller,
Promotion is an activity carried out to commu- 2012). Promotional relationships with supportive
nicate the advantages possessed by a product and purchase motivation have been carried out by Birch,
activities carried out to persuade customers to buy et al. (2018),Deebhijarn (2016), Astuti, et al. (2015),
the product Kotler and Keller (2012). PT. and Payson and Karunanithy (2016). As well, dif-
TrakindoUtama Surabaya promotes direct market- ferent results have been made by Cornwell and
ing, personal selling, and mass selling Armstrong and Coote (2005). Furthermore, promotion relationships
Keller (2011). with supportive purchasing decisions are Astuti, et
This research has a uniqueness, the uniqueness al. (2015), Payson and Karunanithy (2016),
lies in the object under study and also the consumer Deebhijarn (2016), Azzadina, et al. (2012), Hasan,
who made the respondent is a special consumer et al. (2016), and Agustiono, et al. (2016). How-
engaged in construction and different from consum- ever, there is unsupportive research conducted by
ers engaged in manufacturing and consumers en- Nandiroh, et al. (2013).
gaged in the field of retail. This research was con-
ducted on permanent consumers who partnered with Purchase Motivation
PT. Trakindo Utama Surabaya for more than three Purchasing motivation is the driving force of
years totalled 58 respondents. consumers to buy or interest in buying an item or

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Nugroho Setio Aji, Achmad Helmy Djawahir, Ainur Rofiq

service (Ajzen, 1991). The relationship between ship of purchase motivation as a mediation of the
purchase motivation and purchase decision has been influence of promotion with the decision made by
made by Miauw (2016),Nwankwo, et al. (2014), Hwang (2016).
Birch et al. (2018), Hwang (2016), andIndumathi Based on the literature review and the formu-
and Dawood (2016). lation of the problems contained in the hypothesis,
Furthermore, the relationship of purchase mo- there is a conceptual framework that can represent
tivation as a mediation of the influence of products from the description above as follows:
with purchasing decisions, as well as the relation-

Product
H6 H4

H1
Purchase H3 Purchasing
Motivation Decisions

H2 H5
H7
Promotion

METHOD on the regions in the East Java Province, including:


This research is quantitative research with ex- Banyuwangi (1); Bojonegoro (1); Magetan (1);
planatory research approach. This research was Nganjuk (1); Probolinggo (1); Situbondo (1);
conducted on the consumer owner or manager who Trenggalek (1); Tuban (1); Lamongan (2); Malang
bought at PT. Trakindo Utama Surabaya totalled 58 (2); Blitar (3); Pasuruan (4); Gresik (8); Sidoarjo
respondents at the East Java level. The criteria that (8); and Surabaya (23) so that the total number taken
have been determined in the study population are: as a sample of researchers is 58 respondents.
Customers or consumers who buy more than one The sampling method used uses saturated sam-
time; Customers or permanent customers who part- pling technique, where the technique is a sampling
ner with companies for more than three years; Cus- technique that takes all the populations used as
tomers or retail consumers, where the consumers samples, can also be known as census (Arikunto,
in making decisions are simpler and faster; and cus- 2009). Data collection uses questionnaires and lit-
tomers or consumers in the East Java region. With erature reviews. The results of testing the effect
the criteria described earlier, there is a summary of between variables using the WarpPLS version 6.0
the population taken as a research population based application analysis.

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The Influence of Products and Promotions on Purchasing Decisions Mediated

RESULTS AND DISCUSSION


RESULTS
Characteristics of Respondents

Characteristics of Percentage
Total Percentage Characteristics of Total
Respondents Respondents
Gender Company
Man 55 95% Construction 47 81%
Woman 3 5% Rental 6 10%
Position Industry 2 4%
Director 32 55% Mine 2 3%
Manager 11 19% Plantation 1 2%
Owner 9 16% Payment
Commissioner 6 10% Cash 11 19%
Education Credit 47 81%
High school 15 26%
Diploma 3 5%
Bachelor 32 55%
Postgraduate 8 14%

Valid Test and Reliability Test r-table N = 58 is more than 0.258 so that each vari-
The results of research on research instruments able meets the criteria of validity testing. Whereas,
to test the validity of product variables, promotion the reliability test of each variable has a value of
variables, purchase motivation variables, and pur- more than 0.6 so that it can meet the criteria of a
chase decision variables can be said to be valid. reliable test.
That is, the coefficient value of each variable with

Hypothesis testing

B = 0.22
Product (P = 0.04)

B = 0.67
(P <.0.01) Purchase Purchasing
Motivation B = 0.28 Decisions
(P = 0.01)
B = 0.30
(P<.0.01)

B = 0.21
Promotion
(P = 0.04)

The figure of Hypothesis Test Results

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Nugroho Setio Aji, Achmad Helmy Djawahir, Ainur Rofiq

Hypothesis Test Table


Path Relations Variables Coefficients P-value Results
DIRECT
1 Products > Purchase Motivation 0.67 < 0.01 Highly Sig.
2 Promotion > Purchase Motivation 0.30 < 0.01 Highly Sig.
3 Purchasing Motivation > Purchase Decision 0.28 = 0.01 Weakly Sig.
4 Product > Purchase Decision 0.22 = 0.04 Weakly Sig.
5 Promotion > Purchase Decision 0.21 = 0.04 Weakly Sig.
INDIRECT
6 Products> Purchase Motivation > Purchase Decisions 0.186 0.018 Mediation
7 Promotion> Purchase Motivation > Purchase Decisions 0.084 0.177 Not Mediation

DISCUSSION products that have excellent accessories that can


Effect of Products on Purchase Motivation increase consumers; CAT products are also known
as products that are very strong against that the
The results of the study can be seen that the
product to be used can work well according to its
product can have a significant effect on purchase
use. CAT does not hesitate to cut damaged parts
motivation. These are products with payments that
without charge if the unit is damaged during the
have a strong enough relationship.The product is
warranty period. Even CAT is the first product in
something that is needed by consumers that can be
Indonesia, even in the world that dares to issue a 2-
accommodated by goods or services that can be
year warranty program without limitation of hours
offered to the market to satisfy needs (Armstrong
to its units due to manufacturer defects. This in-
and Keller, 2011). Products can be said to be some-
creases consumer purchases of CAT products.
thing that can be offered to the market to fulfil the
wants or needs, including physical goods, services,
Promotion Effect on Purchase Motivation
experiences, events, people, places, properties, or-
ganizations, information, and ideas (Kotler and The results of the study can be seen that pro-
Keller, 2016). Meanwhile, purchasing motivation is motions can have a significant effect on purchasing
the power of consumers to buy or interest in buying motivation. This means that promotion with pur-
an item or service (Ajzen, 1991). The relationship chase motivation has a strong enough relationship.
between the product and the purchase motivation is Promotion is a part of marketing strategy, where
supported by Nwankwo, et al. (2014) and Deebhijarn promotion has a function to provide information,
(2016). However, different results have been made persuade, and remind consumers both directly and
by Supriyadi, et al. (2016) does not support. indirectly of a product sold (Kotler and Keller, 2012).
Facts on the surface allow similar things. With Meanwhile, purchasing motivation is the power of
more and more improved products, it is increasing consumers to buy or interest in buying an item or
purchases from consumers. With technology that service (Ajzen, 1991).Promotional relationships with
suits your work needs, consumers want to buy. With supportive purchase motivation have been carried
better products, productivity will increase and cause out by Birch, et al. (2018),Deebhijarn (2016),Astuti,
payments to increase. Products that are easy to use, et al. (2015), and Payson and Karunanithy (2016).
increase productivity, increase buying interest; CAT As well, different results have been made by
products as a brand that is well known to adults as Cornwell and Coote (2005).CAT products have spe-
a quality product that can increase consumer inter- cial promotional offers to their customers, namely:
est in the product; CAT products are also known as A lease-purchase offer, that is, the unit is leased for

156 JOURNAL OF APPLIED MANAGEMENT VOLUME 17 NUMBER 1 MARCH 2019


The Influence of Products and Promotions on Purchasing Decisions Mediated

6 months, then purchased using the remaining price that can be accommodated by goods or services
after deducting the rental fee. Offer to purchase that can be offered to the market to satisfy needs
units at economical prices followed by a warranty (Armstrong and Keller, 2011). Products can be said
package of up to 2 years or bonus filters or units to be something that can be offered to the market
only with a standard package. Offer to purchase to fulfil the wants or needs, including physical goods,
units at premium prices but also coupled with pre- services, experiences, events, people, places, prop-
mium services such as a 2-year warranty without erties, organizations, information, and ideas (Kotler
hour limitation, free of charge for service and parts and Keller, 2016). Whereas, the Purchasing Deci-
for 1 year or 2000 hours, fuel warranty, and so on. sion is the consumer has the intention to buy the
With various kinds of promotions carried out by desired item (Schiffman and Kanuk, 2004).The
Trakindo-CAT, it has been proven to be able to in- product relationship with purchasing decisions is
crease the buying desire of consumers. supported by Hasan, et al. (2016),Indumathi and
Dawood (2016),Azzadina, et al. (2012), and
Effect of Purchasing Motivation on Purchase Agustiono, et al. (2016) and the research conducted
Decisions by Junaidi and Dharmmesta (2002) does not
The results of the study can be seen that pur- support.As stated earlier that the goods offered have
chase motivation can have a significant effect on special specifications, intended for certain jobs and
purchasing decisions. This means that the purchase certain markets. Because of this, even though the
motivation with purchasing decisions has a fairly product and purchasing decision has a positive cor-
weak relationship.Purchasing motivation is the driv- relation, but as good as the product, if it can’t be
ing force of consumers to buy or interest in buying used for work it won’t be bought.
an item or service (Ajzen, 1991). Whereas, the Pur-
chasing Decision is the consumer has the intention Promotion Influence on Purchase Decisions
to buy the desired item (Schiffman and Kanuk, The results of the study can be seen that pro-
2004).The relationship between purchase motiva- motions can have a significant effect on purchasing
tion and purchase decision has been made by Miauw decisions. This means that products with purchas-
(2016),Nwankwo, et al. (2014), Birch et al. (2018), ing decisions have an important but weak relation-
Hwang (2016), andIndumathi and Dawood (2016).In ship. Promotion is a part of marketing strategy, where
fact, with increasing buying desire is positively cor- promotion has a function to provide information,
related to consumer purchasing decisions. However, persuade, and remind consumers both directly and
consumers still consider the needs of projects in the indirectly of a product sold (Kotler and Keller, 2012).
field because the items purchased are tools that must Whereas, the Purchasing Decision is the consumer
be used for work. The main consideration is whether has the intention to buy the desired item (Schiffman
the goods/units purchased are in accordance with and Kanuk, 2004).Promotion relations with support-
the work done. If appropriate, it will be purchased. ive purchasing decisions are Astuti, et al. (2015),
If it is not appropriate, it will not be purchased even Payson and Karunanithy (2016), Deebhijarn
if the spirit of buying is high. Because this item is a (2016),Azzadina, et al. (2012), Hasan, et al. (2016),
special item for special needs and marketplace. andAgustiono, et al. (2016). However, there is
unsupportive research conducted by Nandiroh, et
Effect of Products on Purchase Decisions al. (2013).Similarly with promotions. Facts on the
The results of the study can be seen that the field show that even though promotions and pur-
product can have a significant effect on purchasing chasing decisions have a positive correlation, the
decisions. This means that products with purchas- best possible promotion is that if the promoted item
ing decisions have a fairly weak relationship.The is not needed for a job, consumers will be hard to
product is something that is needed by consumers make a purchase. Even if you make a purchase,

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Nugroho Setio Aji, Achmad Helmy Djawahir, Ainur Rofiq

consumers want to get a moment’s benefit from desire to make a purchase and the belief that the
the promotion that is done but not so helpful for the item purchased will provide benefits for the work
work being done. being done. Especially if it is supported by a job
owner who has the same perception, it will be easy
Effect of Products on Purchasing Decisions for consumers to make purchasing decisions.
through Purchase Motivation
The results of this study can be seen that the Influence of Promotion on Purchasing Deci-
product variable can increase the purchase deci- sions through Purchasing Motivation
sion variable through the purchase motivation vari- The results of the study can be seen that the
able. Therefore, it can be concluded that the two promotion variable can increase the purchase moti-
variables have a fairly strong relationship through vation variable. Therefore, it can be concluded that
mediating variables, where the product variables and the two variables have a fairly strong but weak re-
purchasing decision variables have a high value lationship, where the promotion variables and pur-
through the purchase motivation variable, it can be chase motivation variables have a high value, but if
said as a partial mediation. That is, the value of the added the purchase motivation variable becomes a
product variable with its indicators, namely product weak relationship and is said to be not mediation.
features, product quality, and product reliability can That is, the value of the promotion variable with its
have an impact on purchasing decision variables indicators, namely direct marketing, personal sell-
with indicators, namely situational factors, internal ing, and mass selling can have an impact on the
factors, and external factors through purchase mo- purchasing decision variable with its indicators,
tivation with indicators, namely attitudes and namely situational factors, internal factors, and ex-
norms.The product is something that is needed by ternal factors. However, if you add a purchase
consumers that can be accommodated by goods or motivation variable to the indicator, namely attitudes
services that can be offered to the market to satisfy and norms become indirect relationships, then the
needs (Armstrong and Keller, 2011). Products can results obtained are significantly weak and do not
be said to be something that can be offered to the mediate. This shows that promotion as a tool in con-
market to fulfil the wants or needs, including physi- veying information is the existence of a new item in
cal goods, services, experiences, events, people, PT. TrakindoUtama, Surabaya to consumers of
places, properties, organizations, information, and heavy equipment users.
ideas (Kotler and Keller, 2016). Meanwhile, pur- Although given quite attractive promotions, the
chase motivation is the driving force of consumers promotional offer will still be through the consider-
to buy or interest in buying goods or services (Ajzen, ation of consumers who are quite selective both
1991). Whereas, the Purchasing Decision is the themselves through their personal experience,
consumer has the intention to buy the desired item through their group references, and whether the
(Schiffman and Kanuk, 2004).The relationship be- promotion carried out can increase buying interest
tween purchasing motivation as a mediation of the and also consumer confidence in the goods pro-
influence of products with purchasing decisions, as moted. Market offerings and perceptions and work
well as the relationship of purchase motivation as that will later use the unit will also influence con-
mediating the influence of promotion with the deci- sumers in making purchasing decisions.
sion made by Hwang (2016).
The facts in the field show that it needs moti- Research Implications
vation that is strong enough to make purchases be- Theoretically
cause the goods are special items and consumers
Based on the results of the research produce
need to know in detail the products to be purchased.
theoretical implications, namely, first, the product
If the product matches the needs, is supported by
variables in this study can directly be influenced by
trusted people around and also experience, a strong
the purchase motivation variable. Likewise, prod-

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The Influence of Products and Promotions on Purchasing Decisions Mediated

uct variables on purchasing decision variables have Also, the indirect effect of purchasing motivation
influence. This shows that the purchase motivation cannot mediate the influence of promotion on pur-
variable and purchase decision variables can affect chasing decisions, because it has a weak significant
product variables. Second, the promotion variables influence. This shows that promotion as a tool in
in this study can directly be influenced by the pur- conveying information is the existence of a new item
chase motivation variable. Likewise, promotion vari- in PT. TrakindoUtama, Surabaya to consumers of
ables on purchasing decision variables have influ- heavy equipment users. Meanwhile, the indirect
ence. This shows that the purchase motivation vari- effect of the product on purchasing decisions through
ables and purchasing decision variables can influ- purchase motivation can mediate. This shows that
ence promotion variables. Third, the purchase mo- the products carried by the company are already
tivation variable in this study has a role as mediation known by many consumers, especially to consum-
and does not play a role as mediation, where the ers in the construction sector.
purchase motivation variable has a relationship of
product variables with purchasing decision variables Research Limitations
that can act as mediation. Whereas, the relation- Current research aims to answer the problem
ship of the promotion variable with the purchase formulation of a business phenomenon found in the
decision variable through the purchase motivation field of construction. However, in research, there
variable does not act as mediation. are still some limitations of research that need to be
refined for future studies that have the same topic
Practically of discussion. The following are the limitations of
Based on the results of the study produce prac- this study. First, the variables used in this study in-
tical implications, namely product, promotion, pur- fluence heavy equipment purchasing decisions, so
chase motivation, and purchasing decisions are fac- it is very necessary to reconsider to use other vari-
tors of consumer behaviour for purchasing an item. ables such as persuasion. Second, the consumers
The results of the study showed that the direct ef- who were made respondents were special consumers
fect of product influence on purchase motivation engaged in the East Java regional construction sec-
and the effect of the product on purchasing deci- tor and did not cover the regions of Central Java or
sions had a strong significant influence. Also, the West Java.Thus, this limitation makes evaluation
indirect effect of purchasing motivation can medi- material and consideration for future research with
ate the effect of the product on purchasing deci- the same object in the construction field.
sions, because it has a strong significant influence.
This shows that the product has an important role in CONCLUSIONS AND RECOMMENDA-
the sale and rental of heavy equipment that has been TIONS
carried out by PT. TrakindoUtama, Surabaya to Conclusion
consumers of heavy equipment users.
Based on the study of the results of research
However, the realization of the direct influence
analysis and discussion of the influence of products
of product influence on purchase motivation and the
and promotion of purchasing decisions mediated the
influence of promotion on motivation has a strong
purchase motivation, then the conclusion can be
significant influence. That is, products and promo-
drawn as the first, the product has a strong influ-
tions can increase purchase motivation. Whereas,
ence on purchasing motivation. The results of this
the influence of products on purchasing decisions
study can show that products with indicators, namely
and the influence of promotion on purchasing deci-
product features, product quality, and product reli-
sions have a significant weak influence. That is con-
ability can encourage purchase motivation on heavy
sumers in making purchasing decisions always con-
equipment. Second, the promotion has a strong in-
sider their purchasing decisions in terms of prod-
fluence on purchasing motivation. The results of the
ucts and promotions carried out by the company.
study can show that the promotion with its indica-

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Nugroho Setio Aji, Achmad Helmy Djawahir, Ainur Rofiq

tors, namely direct marketing, personal selling, and Recommendation


mass selling can encourage the purchase motiva- Based on the conclusions described earlier, the
tion of heavy equipment. Third, purchasing motiva- following suggestions can be given, and namely, first,
tion has a weak influence on purchasing decisions. this research can enrich the knowledge of knowl-
The results of these studies can show that the mo- edge in the field of marketing management by in-
tivation of purchasing with the indicators, namely volving variables from consumer behaviour, mar-
attitudes and norms can encourage a purchase de- keting mix, and purchase motivation. Second, the
cision on heavy equipment. Fourth, products have a company must consider in terms of the promotion
strong influence on purchasing decisions. These carried out. It is expected that the promotion car-
results can indicate that with the purchase decision, ried out in the future can attract consumers, espe-
where the indicators include situational factors, in- cially consumers engaged in construction and other
ternal factors, and external factors can influence projects. Third, further research is expected to add
the selection of heavy equipment products that can new variables and increase the scope of the popu-
be seen by looking at product features, product qual- lation and samples in subsequent studies with the
ity, and product reliability in heavy equipment. Fifth, same theme to find specific research findings.
the promotion has a weak influence on purchasing
decisions. These results can indicate that with the REFERENCES
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