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JOSS :
Journal of Social Science
THE EFFECT OF PRICE COMPETITION AND TRUST ON ELECTRONIC
PRODUCT PURCHASE DECISIONS ON OUTLET OFFLINE DAN ONLINE
RETAIL
Agitha
1
, Kandi Sofia Senastri Dahlan
2
Universitas Bunda Mulia Tangerang, Indonesia
Email: [email protected]
1
2
KEYWORDS
Price; Belief;
Electronic Product
Purchase
Decisions; Offline
Outlets; and
Online Outlet
ABSTRACT
This study aims to examine the effect of price competition and trust
on electronic product purchase decisions at offline and online retail
outlets. This type of research is quantitative research, using the Partial
Least Square Structural Equation Modeling method called PLS-SEM
because it is one of the variant-based tools that simultaneously
measure relationships between variables and test measurement
models as well as structural model testing with the help of SmartPLS
software. The method used in this study is the survey method, where
the author distributes questionnaires for data collection. The
population used is consumers who have purchased electronic
products both offline and online, especially in the Tangerang Banten
area, with a sample of 248 used. This study uses price and trust
variables as independent variables, electronic product purchase
decisions as dependent variables, and offline retail outlets and online
retail outlets as intervening variables. The results of this study show
that Price has a positive and significant effect on Electronic Product
Purchase Decisions, Prices have a positive and significant effect on
Offline and Online Retail Outlets, Trust has a positive and significant
effect on Electronic Product Purchase Decisions, Trust has a positive
and significant effect on Offline and Online Retail Outlets, Offline
Outlets and Online Retail have a positive and significant effect on
Electronic Product Purchase Decisions, Offline Retail Outlets have a
non-positive and insignificant effect on mediating Prices on
Electronic Product Purchase Decisions while Online Retail Outlets
have a positive and significant effect on mediating Prices on Product
Purchase Decisions Electronics, Offline Outlets and Online Retail
have a positive and significant effect on mediating Trust in Electronic
Product Purchasing Decisions.
INTRODUCTION
Technological developments have helped in several economic sectors such as retail trade
such as e-commerce, transportation such as automated vehicles, educational fields such as open
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online courses, health fields such as electronic records and online consultations, and in social
interaction fields such as social networks (Kartajaya et al., 2019). In the progress of this
technological development, of course, it has encouraged the development of the industrial
revolution which has now entered industry 4.0 and is supported by the development of internet
technology (internet of technology) and digital technology (digital technology).
In addition, the business world from time to time also continues to develop in line with
the development of the industry. This is the impact of technological developments that have
changed various aspects of life. Industrial development has changed the pattern and order of
human life which is often known as the Industrial Revolution, and the fourth Industrial
Revolution known as Industry 4.0 is an era that has given birth to digital business as a growing
business in this century. Digital business has experienced rapid development, this is due to the
development of the Internet and digital technology (Perdana et al., 2020).
Today's digital age is very different from before. Judging from the current structure of
life experiencing drastic changes, such as the internet that brings connectivity and transparency
to life is one of the shifts in life (Kartajaya et al., 2019). The results of the development of
internet technology provide a new concept for people in transacting from offline shopping to
online shopping. The transaction method in offline shopping indirectly requires consumers to
come to meet and make buying and selling transactions with sellers. Now there has emerged a
new transaction concept called online shopping, making transactions faster and easier and can
be done anywhere only relying on the internet through these consumer gadgets (Suleman et al.,
2019).
Business competition in this era has become more varied and each of the business actors
from small to large ones are competing to do various business methods to attract as many
consumers as possible. Digital marketing transformation also called online shopping is not
intended to replace traditional marketing or offline shopping systems. However, the two now
coexist. The following is an overview of the shifting role of traditional and digital marketing in
building customer engagement and advocacy (Kartajaya et al., 2019).
Before making a purchase decision, there are several factors that are taken into
consideration by consumers, including price and trust. Several previous studies by (Wang et al.,
2021) prove that there is an influence of price in offline and online shopping. Nowadays
consumers can easily compare prices offline and online, and can also be used as a reference
before making a decision to purchase. In research, (Wang et al., 2021) said that online prices
are reference prices and offline prices are reference prices. The reference price referred to here
is a complex issue and has a different perspective. Evidence suggests that consumers may
perceive average prices as reference prices.
While (Nosi et al., 2021) in their research looked at the influence of trust in offline and
online shopping purchase decisions because most consumer buying interest is influenced by
consumer confidence itself. His research highlights the trust mechanism of a brand or brand
resulting from trust in various sources. Then (Nosi et al., 2021) also explained that trust covers
various aspects, such as exploring the emotional side of brand trust and the influence of personal
characteristics.
In everyday life, researchers unwittingly feel that technological developments have also
influenced the development of household electronics and become one of the basic needs of a
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household. This is realized by researchers ranging from the state of the family environment,
colleagues to the community who almost entirely have used and relied on electronic products
for their daily needs. According to (Zulaiha et al., 2021) that the increasing public demand for
electronic goods, causes electronic businesses to be found in various places both offline outlets
and online outlets. Starting from the smallest electronic products such as lamps, irons, rice
cookers, microwaves, blenders, fans, televisions, to heavy products such as air conditioners,
refrigerators, washing machines, and others. Some electronic products are used in accordance
with the standards of people's needs, but many people also use them as a form of trend only.
According to data from the Central Statistics Agency (BPS), imports of computer
products, electronic goods, and optics continue to increase from year to year. In 2015, imports
of this commodity were still around USD 12.8 billion, but in 2018 it has reached USD 17.3
billion, although in 2019 it has decreased to USD 16.6 billion and in 2020 it fell again to USD
16.2 billion. Meanwhile, Indonesia's electronics exports look relatively stagnant. Exports in
2020 were only around USD 6.5 billion, not too much changed from the export value in 2015
which was around USD 6 billion. As a result, the electronic commerce transaction deficit
(consisting of computers, electronic goods, and optics) continues to expand, from around USD
6.8 billion in 2015 to USD 11.1 billion in 2018, although in 2020 it fell to around USD 9.70
billion.
According to the Data and Information Center of the Ministry of Industry (2021), the
electronic product industry in Indonesia will have quite a potential good opportunity and
continue to grow in the future. This is because of the first few things, Indonesia has a large
market with a population of more than 270 million people. Second, increasing domestic
consumption of electronic products, including computers, as well as television in line with
government programs that encourage migration to Digital TV. Third, the increasing foreign
demand for Indonesian electronic products, which can be seen from the increase in exports of
this industry. Fourth, the investment value of the electronics industry continues to increase from
year to year. Some investments are aimed at the semiconductor and electronic component
industries, household electrical appliances industry, computer industry, electronic goods, and
optics, and engineering equipment industry. Fifth, based on the Making Indonesia 4.0 roadmap,
the electronics industry will be a sector that receives development priorities from the
government. Then the last, the implementation of the Domestic Component Level (TKDN)
policy for electronic equipment in order to grow the domestic electronics industry from
upstream to downstream.
Not only that, another factor that supports the increasing need for electronic products
along with the increasing number of consumers and changes in people's behavior is the factor
of the Covid-19 pandemic. Since the pandemic has caused changes in people's habits along with
the implementation of mobility restriction policies, working from home (WFH) and online
learning (online), resulting in an increase in demand for electronic products such as mobile
phones (mobile phones or smartphones), laptops (notebooks), and household electronic
equipment (air conditioners, televisions, home appliances cooking).
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METHOD RESEARCH
Research Design
In adjusting this study , researchers elaborated the research design with several methods
and approaches The type used in this study is the type of quantitative research. According to
Sugiyono (2020), quantitative research can be interpreted as a research method based on the
philosophy of positivism because it is used to examine certain populations or samples, data
collection using research instruments, quantitative or statistical data analysis, with the aim of
testing hypotheticals that have been set.
The methods used in this study are descriptive and verification methods. According to
(Sugiyono, 2018), the verification method is a hypothesis testing that has been made from the
results of descriptive research with statistical calculations until results that explain the
hypothesis can be accepted or rejected. Based on this understanding, it can be said that
descriptive and verifiative methods aim to describe whether or not the facts are true or not, and
explain the relationship between the variables studied by collecting data, processing, analyzing,
and interpreting data in hypothesis testing.
The method used in this study was using a survey method, where the author distributed
questionnaires for data collection. Survey research is research conducted by compiling a list of
questions asked to respondents (Sujarweni, 2020).
The unit in this study is consumers who have purchased electronic products both offline
and online, especially in the Tangerang area, Banten.
This study has five variables measured, namely Price, Trust, Electronic Product Purchase
Decisions, Retail Offline Outlets, and Online Outlets.
Operationalization of Variables (Variables) &; Measurement Scales
Research variables are things that take the form of anything set by researchers to be
studied so that information is obtained about it, and then conclusions are drawn (Sujarweni,
2020). Meanwhile, according to (P. Sugiyono, 2016), a research variable is an attribute or trait
or value of a person, object or activity that has certain variations set by the researcher to be
studied and then drawn conclusions. This study has an independent variable and a dependent
variable. In this study has 3 types of variables as follows:
1. Independent Variable (Free)
According to (S. Sugiyono et al., 2019), independent variables (independent variables)
are variables that affect or cause changes or arise dependent variables ( bound). In this
study, the independent variables are price and trust.
2. Dependent Variable (Bound)
According to (S. Sugiyono et al., 2019), dependent variables are variables that are
influenced or that become a result, due to the existence of independent variables. In this
study, the dependent variable is the purchase decision of electronic products.
3. Variable intervention
According to (S. Sugiyono et al., 2019), intervening variables are known as mediation
variables, which means variables that appear in a model or relationships between
independent variables (free) and dependent variables ( bound) and affect the relationship
between the two indirectly. In this study, the intervening variables are offline retail outlets
and retail online outlets.
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In this study, the scale used was an interval scale. In this study, a questionnaire will be
formed using the Likert scale which according to (Sugiyono, 2018) with the following
conditions:
Table 1
Questionnaire Measurement Scale Table
Skala
Valuation
Information
1
STS
Strongly disagree
2
TS
Disagree
3
N
Neutral
4
S
Agree
5
SS
Totally agree
Sumber: Sugiyono (2017)
Population and Sample
Population is a generalization area consisting of objects or subjects that have certain
quantities and characteristics that have been determined by researchers to be studied and then
conclusions will be drawn (Sujarweni, 2020).
The sample is the number and characteristics possessed by a population that is used to be
the object of a study (S. Sugiyono et al., 2019). In this study, the population is consumers who
have bought electronic products both offline and online, especially in the Tangerang area,
Banten.
The sample size was taken using the formula (Hair et al., 2017). This study uses this
formula because the population size is not yet known for sure and suggests that the sample size
is 5-10 times the indicator variable. This study used a sample size of 7.
n = Number of Indicators x 7
n = 24 x 7
n = 168
The sample used to obtain respondents in this study amounted to 168 respondents. The
calculation of the number of respondents is obtained by researchers from the number of
variable indicators multiplied by seven (Hair et al., 2017).
Data Sources and How to Form a Sample
The source of research data is the most important factor in determining data collection
methods. Data sources in this study are primary data and secondary data. Primary data is data
that is taken directly from its data source. According to (Aidley et al., 2018), primary data is
information obtained directly for the purpose of this study whose source comes from
questionnaires. The sampling method used in this study is probability sampling with a simple
random sampling approach. Probability sampling according to (Aidley et al., 2018) is a sample
formation method where the entire population in the study has the same opportunity to be
sampled.
Research Instruments
The instrument used in this study was a questionnaire. Questionnaire is an information
collection technique that allows analysts to study the attitudes, beliefs, behaviors, and
characteristics of several key people in the organization who can be affected by the proposed
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system or by the existing system (P. Sugiyono, 2016). In this study using a questionnaire with
a Likert scale and provisions based on the table that has been shown in the questionnaire
measurement scale table.
Research Instrument Testing
In this study using a variance-based research instrument or better known as PLS (Partial
Least Square). Then in this study also carried out Validity and Reliability Tests, with the
following understanding.
a. Validity Testing
According to (Sujarweni, 2020), to measure the validity or validity of a questionnaire,
validity testing is used. Valid data is data "that does not differ" between the data reported
and what actually occurs in the object of research. This research uses the SmartPLS
application, where there are two stages of validity testing, namely convergent validity
testing and discriminant validity. The convergent test is used to measure the validity of
statements that represent variables so that the statements are understood by respondents.
The discriminant test is used to see the extent to which a model construct differs from other
constructs with empirical standards (Hair et al., 2017).
b. Reliability Testing
The reliability test is used to measure a questionnaire that is an indicator of variables
or constructs (Sujarweni, 2020). A reality test is performed on question items that are
declared valid. Reliability tests are performed after validity tests and are tested as valid
statements or questions. Cronbach's alpha is between 0.50 and 0.60. In this study,
researchers still chose 0.60 as the reliability coefficient. The criteria for reliability testing
are as follows:
1. If Cronbach's alpha value α > 0.60 then the instrument has good reliability in other words
the instrument is reliable.
2. If Cronbach's alpha value < 0.60 then the instrument being tested is not reliable.
Data Analysis Techniques
Data processing in this study uses smartPLS SEM (Partial Least Square – Structural
Equation Modeling) software. PLS has the ability to explain the relationship between variables
and the ability to perform analyses in one test. The purpose of PLS is to help researchers to
confirm theories and to explain the presence or absence of relationships between latent
variables. According to (Ghozali, 2016), the PLS method is able to describe latent variables
(directly immeasurable) and measured using indicators. The author uses Partial Least Square
because this study is a latent variable that can be measured based on the indicators so that the
author can analyze with clear and detailed calculations.
RESULTS AND DISCUSSION
Results of Descriptive Analysis Related to Respondent Profiles and Indicators
In the study "The Effect of Price Competition and Trust on Electronic Product Purchase
Decisions at Offline and Online Retail Outlets" there are questionnaire results that have been
distributed online using Google Form. The number of sample respondents that have been
obtained is 248 respondents. This number has met the minimum calculation of sample size in
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this study with the number of indicators, namely 24 times 7, which is 168 using the theory of
(Hair et al., 2017).
Characteristics of respondents
Based on the results of the respondents' data obtained, it is known that there are 104
people (41.9%) are male and 144 people (31.58%) are female. From the tabulation data, it can
be seen that the majority of respondents in this study are women. And the results of the
respondent data obtained were 140 people (56.5%) aged between 20 to 30 years, 59 people
(23.8%) aged between 31 to 40 years, 38 people (15.3%) aged between 41 to 50 years, and 11
people (4.4%) aged more than 50 years. So from the data above, it can be stated that the
majority of respondents in this study are aged between 20 to 30 years.
Based on the results of the respondent data obtained, it is known that there are 28 people
(16.1%) who have a final education between high school, 40 people (11.3%) who have a final
education between D1 to D4, 171 people (69%) who have a final education between S1, and 9
(3.6%) people who have a final education between S2 – S3. So it can be stated that the majority
of respondents in this study are respondents with S1 final education. And based on the results
of the respondent data obtained, it is known that there are 18 people (7.26%) as students / I,
171 people (68.95%) as private employees, 10 people (4.03%) as SOE employees, 8 people
(3.23%) as civil servants, 32 people (12.90%) as self-employed people, and 9 people (3.63%)
as part-time workers. So it can be stated that the majority of respondents in this study have jobs
as private employees.
Based on the results of the respondents' data obtained, it is known that there are 150
people (60.5%) with incomes of less than IDR 10,000,000, 54 people (21.8%) with incomes
between IDR 11,000,000 to IDR 25,000,000, 31 people (12.5%) with incomes between IDR
26,000,000 to IDR 50,000,000, and 13 people (5.2%) with incomes between IDR 51,000,000
to IDR 100,000,000. So it can be stated that the majority of respondents in this study who have
income below Rp 10,000,000 in one month. And based on the results of respondent data
obtained in Table 4.6, it is known that there are 235 people (94.8%) have made online shopping
purchase transactions for electronic products and 13 people (5.2%) have never made online
shopping purchase transactions for electronic products. So it can be stated that the majority of
respondents in this study have made online shopping purchase transactions for electronic
products.
Based on the results of respondent data obtained, it is known that there are 238 people
(96%) who have made offline shopping purchase transactions for electronic products and 10
people (4%) have never made offline shopping purchase transactions for electronic products.
So it can be stated that the majority of respondents in this study have made offline shopping
purchase transactions for electronic products. And based on the results of respondent data
known that there are 90 people (36.3%) have done less than 2 times to do online shopping in 1
month, 95 people (38.3%) have done 3-5 times to do online shopping in 1 month, 42 people
(16.9%) have done as many as 6-10 times to do online shopping in 1 month, and 21 people
(8.5%) have done more than 11 times to do online shopping in 1 month. So it can be stated that
the majority of respondents in this study have done online shopping 3-5 times in 1 month.
Based on the results of respondent data obtained, it is known that there are 126 people
(50.8%) have done less than 2 times to do offline shopping in 1 month, 81 people (32.7%)
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have done 3-5 times to do offline shopping in 1 month, 26 people (10.5%) have done 6-10
times to do offline shopping In 1 month, and 15 people (6%) have done more than 11 times to
do offline shopping in 1 month. So it can be stated that the majority of respondents in this
study have done offline shopping less than 2 times in 1 month. And based on the results of
respondent data obtained in Table 4.10, it is known that there are 101 people (40.7%) who often
buy types of lighting electronic products (table lamps, room lamps, emergency lights, etc...),
80 people (32.3%) who often buy types of electronic products cooking utensils (rice cooker,
microwave, blender, etc...), 172 people (69.4%) who often buy types of entertainment
electronic products (TV, PCs, smartphones, gadget accessories, etc...), and 62 people (25.8%)
who often buy heavy electronic products (refrigerators, washing machines, fans, etc...). So it
can be stated that the majority of types of electronic products that respondents often buy in this
study are entertainment products (TV, PC, smartphone, gadget accessories, etc...).
Test Instruments
Data that has been collected and analyzed with SEM models using SmartPLS version
3.0. Partial Least Square (PLS) which is an alternative method of SEM or Structural Equation
Modeling that can be used to overcome SEM problems (Haryono, 2017).
Evaluasi Outer Model
Evaluation of the outer model or measurement model is carried out to assess the validity
and reliability or reliability of the model. Outer models with reflexive indicators are evaluated
through convergent validity and discriminant validity of the indicator and composite reliability
for indicator blocks (Ghozali & Latan, 2015). In this step, an SEM model diagram is developed
that aims to make it easier to see the causal relationships you want to test.
Hypothesis Testing
The next stage is to do bootstrapping testing. This test is done by looking at the results
of the Path Coefficients test to see the significance value through p value to check the
relationship between variables. Here are the results of bootstrapping testing from using
SmartPLS 4.
Figure 1
Source: SmartPLS 4 data processing, (2023)
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After doing bootstrapping testing as in Figure 1, the next step is to do a Path Coefficients
analysis to see the results of direct influence calculations. The variable is declared significant
when the p- value < 0.05 (Hair et al., 2017).
Table 2
Hypothesis Testing of Direct Influence of Offline Retail Outlets
Hipotesis
P Value
Information
Price -> Electronic Product Purchase Decision
0,003
Accepted
Harga -> Outlet Offline Retail
0,023
Accepted
Trust -> Electronic Product Purchase Decisions
0,000
Accepted
Kepercayaan -> Outlet Offline Retail
0,000
Accepted
Offline Retail Outlets -> Electronic Product Purchase
Decisions
0,000
Accepted
Source: SmartPLS 4 data processing, (2023)
Based on Table 1 is the result of calculations between constructs contained in the model
by taking into account the p value (p-value) can be expressed as follows:
1. Hipotesis 1
The price variable against the electronic product purchase decision variable has a p value
(p-value) of 0.003 < 0.05, so the first hypothesis is accepted. This means that price variables
have a positive and significant effect on electronic product purchase decisions.
2. Hipotesis 2
The price variable against the offline retail outlet variable has a p value (p-value) of 0.023
< 0.05, so the second hypothesis is accepted. This means that price variables have a positive
and significant effect on offline retail outlets.
3. Hipotesis 3
The variable of trust in the purchase decision of electronic products has a p value (p-value)
of 0.000 < 0.05, so the third hypothesis is accepted. This means that the trust variable has a
positive and significant effect on the purchase decision of electronic products.
4. Hipotesis 4
The variable trust in offline retail outlets has a p value (p-value) of 0.000 < 0.05, so the
fourth hypothesis is accepted. This means that the trust variable has a positive and significant
effect on offline retail outlets.
5. Hipotesis 5
The variable of offline retail outlets on the purchase decision of electronic products has a p
value (p-value) of 0.000 < 0.05, so the fifth hypothesis is accepted. This means that the
variables of offline retail outlets have a positive and significant effect on electronic product
purchase decisions.
Discussion of Research Results
The effect of price on the purchase decision of electronic products
In testing the hypothesis of the direct influence of offline retail outlets, there is a price
variable on the variable of electronic product purchase decisions having a p value (p-value) of
0.003 < 0.05, then H1 is accepted. Then in testing the hypothesis of the direct influence of
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online retail outlet prices on the variable of electronic product purchase decisions have a p
value (p-value) of 0.002 < 0.05, then H1 is accepted. This means that price variables have a
positive and significant effect on electronic product purchase decisions.
This is in line with the results of research conducted by (Lihardo, 2022) that the results
of the analysis studied show that prices have a positive and significant influence on purchasing
decisions for electronic goods. The results of the analysis studied showed that the price variable
(X2) had a positive effect of 71.9% and a significant level of 0.000 on the purchase decision of
electronic goods (Y). Thus, it can be concluded in (Lihardo, 2022) research that the price
variable (X2) has an influence on purchasing decisions (Y). Then it is also in line with the
results of research conducted by (Ati et al., 2020), that prices have a positive and significant
effect on consumer buying interest in electronic products. This is because with the price in
accordance with the quality obtained, consumers will be more interested in buying the product.
From 248 respondent data that have been processed, the results show that there is a
positive and significant relationship of price to the purchase decision of electronic products.
The accepted hypothesis can be caused by a number of respondents' consideration factors
related to price including affordable prices, the quality of electronic products offered, the
function of electronic products, and price competitiveness with other outlets. Respondents who
see price and feel price is very important because it is a consideration factor of respondents in
this study in making electronic product purchase decisions. And respondents also consider the
price offered in the selection of product types, the level of product brand popularity, the
selection of offline outlets and online stores, time, product features, product specifications,
product durability and product warranty offers before making an electronic product purchase
decision.
The effect of price on offline outlets and online retail
In testing the hypothesis of the direct influence of offline retail outlets, there is a price
variable on the variable offline retail outlet has a p value (p-value) of 0.023 < 0.05, then H2 is
accepted. Then in testing the hypothesis of the direct influence of online retail outlet prices
on price variables on offline outlets and online retail has a p value (p-value) of 0.002 < 0.05,
then H2 is accepted. This means that price variables have a positive and significant effect on
offline retail outlets. Then the price variable against the online retail outlet variable has a p
value (p-value) of 0.002 <0.05, then H2 is accepted. This means that price variables have a
positive and significant effect on offline and online retail outlets.
This is in line with the results of research conducted by Zhuang, Leszczyc, and Lin (2018)
that price has a positive and significant effect on offline and online retail outlets. In the study,
there is an influence of price competition in offline and online shopping, where the spread of
online prices is higher than offline.
From 248 respondent data that have been processed, the results show that there is a
positive and significant relationship of price to offline and online retail outlets. The accepted
hypothesis can be caused by a number of factors, one of which is price competitiveness.
Respondents in this study will compare the price offered cheaper for an electronic product both
at offline outlets and retail online outlets.
The influence of trust on electronic product purchasing decisions
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In testing the hypothesis of the direct influence of offline retail outlets and online retail
outlets, there is a variable of trust in the purchase decision of electronic products, both of which
have p values (p-value) of 0.000 < 0.05, then H3 is accepted. This means that the trust variable
has a positive and significant effect on the purchase decision of electronic products.
This is in line with the results of research conducted by (Zhao et al., 2019) which found the
first few results, trust has a significant positive impact on consumers' desire to buy a product.
Second, trust in sellers will directly affect not only the desire to continue buying but also the
trust that arises in a product brand, which indirectly affects the desire to continue buying
because of the emergence of this trust. Then it is also in line with research conducted by
(Mulyadi et al., 2018) that their research which has variables of trust, convenience, and quality
of information has a significant effect on simultaneous purchasing decisions. So both studies
that trust has a positive and significant effect on electronic product purchase decisions.
From 248 respondent data that has been processed, the results show that there is a positive
and significant relationship of trust in the purchase decision of electronic products. The
accepted hypothesis can be caused by a number of factors, one of which is trust in providing
security guarantees during the transaction process such as providing a sense of freedom from
danger, not feeling afraid, anxious or anxious, and protection against fraud when making
electronic product purchase decisions.
The effect of trust on offline and online retail outlets
In testing the hypothesis of the direct influence of offline retail outlets and online retail
outlets, there is a variable of trust in offline and online retail outlets, both of which have p
values (p-values) of 0.000 < 0.05, then H4 is accepted. This means that the trust variable has a
positive and significant effect on offline and online retail outlets.
This is in line with the results of research conducted by (Nosi et al., 2021) that trust has
a significant effect on offline and online retail outlets. In the study, it was found that there is
an influence of trust in brands for shopping both offline and online as seen from consumer
intentions and behavior.
From 248 respondent data that has been processed, the results show that there is a positive
and significant relationship of trust in offline and online retail outlets. The accepted hypothesis
can be caused by a number of factors, one of the factors is that respondents in this study choose
to shop for electronic products at offline retail outlets because they feel more guaranteed and
can see products directly, while at online retail outlets respondents can feel confident by
looking at product assessment reviews or store reputation first.
The influence of offline outlets and online retail on electronic product purchasing
decisions
In testing the hypothesis of the direct influence of offline retail outlets, there are offline
retail outlet variables on electronic product purchase decisions having p values (p-value) 0.000
< 0.05, then H5 is accepted. Then in testing the hypothesis of the direct influence of online
retail outlets there are variables of online retail outlets on the purchase decision of electronic
products have a p value (p-value) of 0.003 <0.05, then H5 is accepted. This means that the
variables of offline outlets and online retail have a positive and significant effect on the
purchase decision of electronic products.
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This is in line with the results of research conducted by (Hult et al., 2019) that offline
outlets and online retail have a positive and significant effect on electronic product purchasing
decisions. The study shows that the perceived value on customer satisfaction and customer
loyalty is stronger for online shopping than offline shopping. That is, when customers buy
online, consumers see value as a more significant attribute in satisfaction scoring and more
importantly, consumers are more sensitive to satisfaction when making decisions about where
to buy a product.
From 248 respondent data that has been processed, the results show that there is a positive
and significant relationship from offline outlets and online retail to electronic product purchase
decisions. The accepted hypothesis can be caused by a number of factors, one of the factors is
that if shopping through offline respondents can see the electronic product directly so that it is
more guaranteed and there is no need to wait for the product delivery queue, because the
product purchased on the spot can be taken home immediately. Meanwhile, if you shop online,
respondents can save time starting from choosing to find products to the last stage of payment
without the need to queue.
The effect of price on electronic product purchase decisions mediated by offline and
online retail outlets
The results of the hypothesis of the direct influence of offline retail outlets that contain
price variables mediated by offline retail outlets on electronic product purchase decisions, this
is in line with the results of research conducted by (Mahanani, 2018), that the results of his
research show that, price has a negative and insignificant effect on product purchase decisions.
In the study, it was concluded that the higher the brand image, product quality and lifestyle,
the more it will increase the purchase decision of a product. However, if the higher the price
offered, it will reduce the decision to buy it because the price offered is still considered
expensive. Then the hypothesis of the direct influence of online retail outlets in which there are
price variables mediated by online retail outlets on electronic product purchase decisions, this
is in line with the results of research conducted by (Rozi & Khuzaini, 2021) that price has a
positive and insignificant effect on purchasing decision variables in online stores.
The influence of trust on electronic product purchasing decisions mediated by offline and
online retail outlets
In testing the hypothesis of the direct influence of offline retail outlets, there is a
confidence variable mediated by offline retail outlets on the purchase decision of electronic
products having a p value (p-value) of 0.002 < 0.05, then the seventh hypothesis is accepted.
Then in testing the hypothesis of the direct influence of online retail outlets there is a variable
of trust mediated by online retail outlets on the purchase decision of electronic products has a
p value (p-value) of 0.009 < 0.05, then the seventh hypothesis is accepted. This means that
offline and online retail outlet variables have a positive and significant effect on mediating
trust in electronic product purchase decisions.
This is in line with the results of research conducted by (Septiani, 2020) that trust has a
significant positive effect on product purchase decisions.
From 248 processed respondent data, the results showed that there was a positive and
significant relationship of trust in electronic product purchase decisions mediated by offline
outlets and online retail. The accepted hypothesis can be caused by a number of factors, one of
The Effect Of Price Competition And Trust On Electronic
Product Purchase Decisions On Outlet Offline Dan Online
Retail
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which is the guarantee of security during the transaction process, satisfaction guarantees, store
and brand reputation , and product damage compensation that makes respondents' trust in this
study appear. So with this, respondents can consider it during the process of purchasing
electronic products, both purchases made at offline and online outlets.
CONCLUSION
Based on the results of the analysis of questionnaire data that has been distributed through
google form and has been processed, it can be concluded that prices have a positive and
significant influence on electronic product purchase decisions. That is, respondents in this
study see price and feel price is very important because it is a consideration factor from the
community in making electronic product purchase decisions. The quality and function of the
product is one of the considerations for respondents from the price offered. Price has a positive
and significant influence on offline and online retail outlets. That is, respondents in this study
compared the price of electronic products from one offline outlet with online outlets, to get a
cheaper price. Trust has a positive and significant influence on the purchase decision of
electronic products. That is, respondents in this study feel confident when given security
guarantees during the transaction process such as providing a sense of freedom from danger,
not feeling afraid, anxious or anxious, and protection against fraud when making electronic
product purchase decisions. Trust has a positive and significant influence on offline and online
retail outlets.
That is, respondents in this study choose to shop for electronic products at offline retail
outlets because they feel more guaranteed and can see products directly, while at online retail
outlets respondents can feel confident if they see product assessment reviews or store reputation
first. Offline outlets and online retail have a positive and significant influence on electronic
product purchasing decisions. That is, respondents in this study if through offline outlets can
see directly the electronic product so that it is more guaranteed and does not need to wait for
the product delivery queue, because products purchased on the spot can be taken home
immediately. Meanwhile, if through online outlets, respondents can save time starting from
choosing to find products to the last stage of payment without the need to queue. Offline retail
outlets have a non-positive and insignificant influence on price mediation on electronic product
purchase decisions. While online retail outlets have a positive and significant influence on
mediating prices on electronic product purchase decisions. That is, not all respondents in this
study prioritize and attach importance to price when purchasing electronic products at offline
outlets.
However, all respondents in this study attach importance to prices when purchasing
electronic products at online outlets, such as by comparing prices from one outlet to another
online outlet and respondents who choose to shop for electronic products online because it has
a cheaper price influence than offline shopping on the spot. Offline outlets and online retail
have a positive and significant influence on mediating trust in electronic product purchase
decisions. That is, respondents in this study feel confident in the existence of security
guarantees during the transaction process, satisfaction guarantees, store and brand reputation,
and product damage compensation. This makes respondents' sense of trust in this study appear
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and with this respondent can consider it during the process of purchasing electronic product
decisions, both purchases made at offline and online outlets.
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Copyright holders:
Agitha
1
, Kandi Sofia Senastri Dahlan
2
(2023)
First publication right:
JoSS - Journal of Social Science
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