JOSS: 

Journal of Social Science

 


ANALYSIS  OF THE INFLUENCE OF COUNTRY OF ORIGIN, BRAND AWARENESS, AND  PERCEIVED PRICE ON  THE PURCHASE DECISION OF MCB CLIENT PRODUCTS WITH PERCEIVED QUALITY AS A MEDIATING VARIABLE

 

Biko Yoshia Sirus

Universitas Mercubuana Jakarta, Indonesia

Email: [email protected]

KEYWORDS

Country of Origin; Brand Awareness; Purchase Decision; Perceived Price; Perceived Quality

ABSTRACT

The purpose of this study is to test and analyze the influence of country of origin, brand awareness, and perceived price on the purchase decision of MCB CHINT products with perceived quality as a mediation variable. The data used in this study are the results of questionnaires distributed directly in March - April 2023. Sampling is done through the purposive sampling method, where researchers have set several criteria. There were 149 respondents in this study. This research analysis method uses PLS-SEM with the help of SMART PLS. Perceived Quality mediates the influence of Country of Origin on Purchase Decisions partially (Partial Mediation). Perceived Quality does not mediate the influence of Brand Awareness on Purchase Decision (No Mediation) Perceived Quality fully mediates the influence of Perceived Price on Purchase Decision (Full Mediation).

 

INTRODUCTION

The role of electrical energy is very important in everyday life. Because in modern times today various equipment used cannot be separated from the source of electrical energy. It is certain that without electrical energy, daily activities will be disrupted (Prabowo et al., 2019). Each series of electrical installations always uses an overload and overcurrent safety device caused by a short circuit using MCB (Mini Circuit Breaker) in each building. Quoted from the book Basic of Electrical Power Installation (2020) by Lauhil Mahfudz Hayusman, the working principle of MCB is that under normal conditions, MCB functions as a manual switch that can connect (ON) and disconnect (OFF) electric current. Meanwhile, when there is an overload or short circuit, the MCB will operate automatically by cutting off the electric current passing through it (Loka et al., 2022).

Business competition conditions continue to increase which encourages companies to further expand market networks. In expanding the market network, companies are required to be able to master the products marketed and followed by the company's image or good name while in the business world (Lubalu & Alfiani, 2022).  Companies are also required to be smarter in seeing existing market opportunities, this is to make it easier for companies to interact and know current customer needs in developing their business, competing to attract customer attention and trust to dominate the market. According to Haryono Budi (2016: 24) customers are individuals or organizations that have effectively made purchases.

Figure 1

MCB Sales Data in the Retail Category in Indonesia 2017 – 2021

Source: Primary data in processed billions, 2022.

 

Based on the picture above, it can be seen that the level of use of MCB products in Indonesia from 2017 to 2021 continues to increase in the retail category. In retail management books, the definition of retail is an activity that involves transactions of goods and services directly to end customers (Utami, 2017). With this increase, this makes Indonesia a country with a promising market share even though in 2019 – 2021 there was no significant increase due to the COVID-19 pandemic (Setiadi et al., 2018).

 

 

 

 

 

 

 

 

 

Figure 2

MCB Chint's Market Share in the Retail Category in Indonesia in 2021

Source: Processed primary data, 2022.

 

From the picture above, it can be seen that Chint is in second place at 15%. Companies that have the largest market share in an industry are called market leaders (Stevenson & Taylor, 2019). Although it is quite far adrift from its main competitor Schneider Electric at 60% in first place, Chint is the only brand from China where competitors are dominated from countries on the European continent. Next in third place is ABB at 6%, followed by LS in fourth position at 5%, and several other brands combined at 4%. Getting market share is a big goal for many companies because of its relationship with company profits, the more sales in the market, the more profits received (Stevenson & Taylor, 2019).

 

 

 

 

 

 


Figure 3

MCB CHINT Sales Data in Indonesia 2017 - 2021

Source: Primary data in processed billions, 2022.

 

Based on the picture above, Chint's MCB products also experienced an increase in sales every year during the 2017 – 2021 period and it can be said that Chint still has considerable potential to grow the Indonesian market, especially in the retail category. This is because there is starting to be confidence in the minds of consumers in the technological development of the brand's home country, China. In addition, Chint's products have also proven by the many products used in PLN projects (Saputra et al., 2019).

Some people in Indonesia still view that products originating from China with one eye. Products made in China are considered only superior at low prices, the results of imitating or plagiarizing products of other countries that already have a strong brand image. Consumers tend to evaluate a product based on information on the country of origin or county of origin (Listiana, 2014). Another definition of country of origin is a set of mental associations and beliefs of a person in a product triggered by the country of origin of the product (Kotler et al., 2016).

Every consumer buys goods or products they need to meet the needs of their daily lives. Several factors can be an influence on a person's perception of a product, one of which is the image of the country of origin of a product or country of origin. Country of origin is the country of origin of a product. To indicate the country of origin is often written with "made in" or artificial on the product. Many are then very familiar with the word made in so that seeing the word made in on packaging products, they immediately interpret the product comes from a certain country. For example, if the product packaging has "Made In USA" then the product is made in the United States (Kagan, 2013). Consumers sort and choose where the product is created, how good or bad the image of a country is so that it can be taken into consideration by someone in choosing the product to consume.

In addition, brand awareness also plays an important role in making purchase decisions. According to (Cahyani, 2016) brand awareness is the ability of a consumer so that it can recognize or be able to recall the brand so that consumers can associate it with one particular product category because of this, a consumer can have brand awareness of a brand automatically so that it can describe the elements of a brand without help (Shahid et al., 2017). In other words, high brand awareness will increase brand memory in the minds of consumers when consumers think about a product. The importance of product awareness in this case the customer has no doubt about what it is decided to buy. Chint does branding on stores such as making signage with the Chint logo, attaching stickers and posters, doing activities on social media to increase brand awareness in the community.

Customers will usually rationalize their thoughts on price. When customers see the price of a product, customers will consider with the thought of whether the price is in accordance with the additional benefits provided or whether the price is feasible to be given for such a product (Nusret & Yildirim, 2018). If the customer feels that the price is appropriate and feasible with the product he receives, the consumer will want to decide to buy the product. (Kotler et al., 2016) explain that perception is a process used by individuals to select, organize and interpret information input to create a meaningful picture of the world. Price perception or perceived price is the tendency of consumers to use price in assessing product quality (Soliha & Fatmawati, 2017). In addition, (Soliha & Fatmawati, 2017) explained that price perception concerns how price information is understood by consumers and made meaningful to them.

In cognitive processing of price information, consumers can compare the stated price with a price or price range they imagine for the product. say that perceived price is related to how price information is understood by consumers and gives them deep meaning. Over time, the evaluation carried out by consumers on the price of the product is influenced by consumer behavior itself.

Table 1

MCB Price Comparison

Brand

Tipe

Number of Poles

Current

 Price

Schneider Electric

Schneider Electric NEW DOMAE MCB 6kA 1P

1P

6A

Rp 79.000

Chint

CHINT MCB NXB-63H 6kA 1P

1P

6A

Rp 23.500

Himel

MCB HIMEL 1 PHASE C 6kA HDB3WL1 1P

1P

6A

Rp 26.000

ABB

ABB MCB 1Pole 6kA 6A SH 201-C6 2CDS211001R0064 1P

1P

6A

Rp 55.000

LS

MCB LS BKN 1 PHASE 6kA

1P

6A

Rp 34.500

Source: Processed primary data, 2022.

In the table above it can be seen that in the same category and specifications, namely MCB with 1 pole (1P) with a current of 6 amperes, Chint products are the cheapest Rp 23,500 and Schneider Electric products are the most expensive Rp 79,000.

Product quality is a specialty, namely characteristics that complement the quality function of a product can be in the form of shape, model, or physical structure of a product that is better than other similar products (Handoko et al., 2015). According to (Adam, 2015) the impression of quality (perceived quality) is consumer perception of the overall quality or superiority of a product or service. According to (Chandra et al., 2021) perceived quality is the image and reputation of the product and the company's responsibility towards it. Usually due to the buyer's lack of knowledge of the attributes or features of the product to be purchased, the buyer perceives the quality from the aspect of price, brand name, advertising, company reputation, and country of manufacture. Meanwhile, according to (Keller et al., 2017) perceived quality is the customer's perception of the overall quality or superiority of a product or service compared to alternatives and goals that have been set. In this case, the quality of Chint products has been proven where MCB products have received SNI, UL, TUV, and Intertek certificates as local or international product standardization.

PT Chint Indonesia was officially established in 2005 by marketing electrical products in the territory of Indonesia. Until now, PT Chint Indonesia has developed a marketing network throughout Indonesia with official representative offices in almost all provincial capitals in Indonesia. Within 10 years, Chint managed to gain the trust of users in various sectors, both private and government. Chint products can be found in various industries, buildings, hotels and apartments throughout Indonesia, also trusted by PLN for some of the largest off-grid solar power plant projects in Indonesia amounting to 600KWp on Morotai Island, Ambon; and 335KWp on Bunaken Island, North Sulawesi.

Seeing this phenomenon, the author sees that there is a stigma where Chinese products are not as good as products from other countries, where in this study European products and other countries have a larger market share. Here it can also be seen that although the price of Chint is cheaper than the price of competitors, but Schneider Electric which has the most expensive price is the market leader of MCB with the largest market share and is the choice of customers, namely home contractors or commercial projects. In terms of quality, Chint also has complete test certificates of national and international standards. Chint is also quite active in conducting marketing activities to support brand awareness both offline and online.

METHOD RESEARCH

In research, design and planning are needed so that the research carried out can run smoothly and systematically. According to (Sekaran & Bougie, 2017) research design is a plan for data collection, measurement, and analysis, based on research questions from studies. According to Silaen (2018: 23) revealed that research design is a design regarding the entire process needed in planning and implementing research. The type of research used based on the purpose of the study is to use an explanatory research design. According to (Silaen, 2018) revealed that explanatory research or also called verifiative research aims to test a truth through testing hypotheses about cause and effect between the variables studied.

In this study, the author uses quantitative methods with a descriptive research approach because of the variables to be examined and the aim is to present an overview of the relationship between the variables studied. The research method used in this study is a quantitative research method with a descriptive approach. According to (Sekaran & Bougie, 2017), quantitative descriptive studies are designed to collect data that explain people, events, or situations (Sekaran & Bougie, 2017).

Quantitative research methods are one type of research whose specifications are systematic, planned and clearly structured from the beginning to the making of the research design. According to (Sekaran & Bougie, 2017), quantitative research methods are used to examine certain populations or samples, sampling techniques are generally carried out randomly, data collection using research instruments, quantitative or statistical data analysis with the aim of testing hypotheses that have been set. This research uses a descriptive approach with the aim of describing the object of research or research results.

The descriptive method serves to provide an overview of the object under study through data or samples that have been collected as they are, without conducting analysis and making generally accepted conclusions, so this study uses an explanatory survey method with questionnaires.

Variable Definition and Operationalization

Narrative Definition

An operational definition of a variable is a definition given to a variable by giving meaning or specifying activities or justifying an operation needed to measure the variable. A variable is anything that can have different or different values. The value can be different at different times for the same object or person or at the same time for different objects or people (Sekaran & Bougie, 2017). The variables used in this study are bound variables and independent variables.

Dependent Variable

A dependent variable is a type of variable that is described or influenced by an independent variable with the symbol Y. According to (Sekaran & Bougie, 2017), the dependent variable is a variable that is the main interest of researchers. The researcher's goal is to understand and describe the dependent variable, or to explain its variability, or predict it. In other words, it is the main variable suitable to be investigated as a viable factor The dependent variable used in this study was Purchasing decision. Purchase Decision is a form of consumer desire behavior that wants to buy or choose a product based on experience, use and desire for a product.

Mediation/Intervening Variables

According to (Sugiyono et al., 2019), intervening variables are variables that theoretically affect the relationship between independent and dependent variables into indirect relationships and cannot be observed and measured. This variable is an interrupter variable that lies between the independent and dependent variables, so that the independent variable does not directly affect the change or emergence of the dependent variable. The mediation/intervening variable in this study is perceived quality (Z).

The choice of perceived quality as a mediating variable because perceived quality has a considerable influence on purchasing decisions, consumer assessment of perceived quality of products depends on their knowledge of information about the actual function of the product, thus consumers who are interested in making purchases of a product are influenced by the information received.

According to (Mardikaningsih, 2019) in the field of marketing, quality perception is considered an important element before making decisions because before the purchase process consumers will compare quality and related to the price of certain products.

Previous research (Dinata & Khasanah, 2022) proved that product quality perception has a positive effect on purchasing decisions which means that better consumer perceptions of product quality will lead to increased purchase decisions.

Independent Variable

Free or independent variables are a type of variable that explains or influences the dependent variable, either positively or negatively with the symbol X. According to (Sugiyono et al., 2019) the definition of independent (free) variables is a variable that will affect or be the cause of changes or the emergence of dependent variables (bound). The independent variable is an independent variable where this variable is indeed free. That is, independent variables can stand alone without being affected by other variables. In addition, a variable is said to be an influential variable because it will affect other variables. So it can be said that the independent variables used in this study are country of origin, brand awareness, and perceived price.

Variable Operationalization

The operational definition of variables is an aspect of research that provides information or instructions to us about how to measure a variable. Operational definitions can also help other researchers who want to conduct research using the same variables. According to (Sugiyono, 2018), the operational definition of variables is everything in any form that is determined by the researcher to be studied so that information is obtained about it and then conclusions are drawn.

Table 2

Variable Operationalization

No

Variable

 

Indicators

Measurement Scale

1

Purchase Decision (Y)

Tjiptono (2020, p. 184)

a.     Product selection

b.     Brand selection

c.     Reseller selection

d.     Time of purchase

e.     Number of purchases

Likert

2

Country of Origin (X1)

Yasin et.al (2014)

a.     Country belief

b.     People affect

c.     Desire interaction

Likert

3

Brand Awareness (X2)

Sopiah and Sangadji (2016) in Munica (2017)

a.     Top of Mind

b.     Brand Recall

c.     Brand Recognition

Likert

4

Perceived Price (X3)

Kotler (2008: 345) (quoted from Krisdayanto et. al. 2018)

a.     Product affordability

b.     Price match with quality

c.     Price competitiveness

d.     Suitability of price with benefits.

Likert

5

Percieved Quality (Z)

Tjiptono (2018:121)

a.     Performance

b.     Features

c.     Conformance to Specification

d.     Aesthetics (Esthetica)

Likert

 

RESULT AND DISCUSSION

Descriptive Analysis of Respondents

At the beginning of the questionnaire, there are several fields that show the personal data of research respondents. The following is an overview of respondent characteristics consisting of respondent gender, respondent age, respondent province, respondent's occupation and number of purchases of MCB Chint products.

Table 3

Distribution of Respondents by Gender

Respondents by Gender

Sum

Presented

Man

142

95.3%

Woman

7

4.7%

Total

149

100.0%

Source: Processed primary data, 2023.

From table 4 it can be seen that the composition of respondents' characteristics based on gender is dominated by men, namely as many as 142 people (95.3%), while women amounted to 7 people (4.7%).

Table 4

 Distribution of Respondents by Age

Respondents by age

Sum

Percentage

25 - 33 years

57

38.3%

34 - 42 years

46

30.9%

43 - 51 years

39

26.2%

52 - 60 years

3

2.0%

More than 60 years

4

2.7%

Total

149

100.0%

Source: Processed primary data, 2023.

It can be seen in table 5 that the composition of the characteristics of respondents aged 23-33 years is 57 people (38.3%), aged between 34-42 years is 46 people (30.9%), respondents aged between 43-51 years are 39 people (26.2%), respondents aged between 52-60 years are 3 people (2.0%), and respondents aged over 60 years are 4 people (2.7%).

Table 5

 Distribution of Respondents by Domicile

Respondents by Domicile

Sum

Percentage

Bantam

22

14.8%

Jakarta

7

4.7%

Central Java &; DIY

49

32.9%

East Java

21

14.1%

West Java

50

33.6%

Total

149

100.0%

Source: Processed primary data, 2023.

It can be seen in table 5 that the composition of the characteristics of respondents domiciled in Banten is 22 people (14.8%), DKI Jakarta domicile is 7 people (4.7%), Central Java & DIY domicile is 49 people (32.9%), East Java domicile is 21 people (14.1%), and West Java domicile is 50 people (33.6%).

 

Table 6

 Distribution of respondents by occupation

Respondents by Occupation

Sum

Presented

Panel Maker

57

38.5%

Contractor

50

33.8%

Consultant

41

27.7%

Total

149

100.0%

Source: Processed primary data, 2023.

It can be seen in table 6 that the composition of the characteristics of respondents working  as panel makers amounted to 57 people (38.5%), worked as contractors amounted to  50 people (33.8%), and worked as consultants amounted to 41 people (27.7%).

Table 7

 Distribution of Respondents by Number of Purchases

Respondents by Purchase Amount

Sum

Presented

1 time

21

14.6%

2-5 Times

42

27.7%

More than 5 times

86

57.7%

Total

149

100.0%

Source: Processed primary data, 2023.

It can be seen in table 7 that the composition of the characteristics of buying 1 time a total of 21 people (14.6%), buying 2-5 times a total of 42 people (27.7%), and buying more than 5 times a total of 86 people (57.7%).

Descriptive Analysis of Variables

In the next stage, here are the descriptive statistics of research variables. The variables used are Purchase Decision  (Y), Country of Origin  (X1), Brand Awareness  (X2), Perceived Price (X3  ), and Perceived Quality

Tabel 8

 Deskripsi Variabel Purchase Decision (Y)

Indicator

1

2

3

4

5

Mean

PD1

I will buy MCB products under the brand CHINT.

0

0

15

95

39

4.16

PD2

I bought MCB CHINT products because of the advantages of the product.

0

1

15

96

37

4.13

PD3

I bought MCB CHINT products because of the characteristics of the brand that I am already familiar with.

0

0

23

87

39

4.11

PD4

It didn't take me long to decide to buy the MCB CHINT product.

0

0

15

92

42

4.18

PD5

I am satisfied with MCB CHINT products and will buy products again in the future.

0

0

17

97

35

4.12

Total

20.70

Average Variable Purchase Decision

4.14

Source: Processed primary data, 2023.

Based on table 8, the Purchase Decision variable  has an average (mean) of 4.14. This value explains that the Purchase Decision on MCB Chint is classified as "very high". The indicator statement "I didn't take long to decide to buy the MCB CHINT product" which has the highest mean value of 4.18. However, there is the lowest aspect  of Purchase Decision, namely the indicator "I buy MCB CHINT products because of the brand characteristics that I am already familiar with" with the lowest average value (mean) of 4.11. This indicates that buyers will make a decision to buy MCB Chint products if the products offered have advantages.

Table 9

 Deskripsi Variabel Country of Origin (X1)

Indicator

1

2

3

4

5

Mean

COO1

I decided to buy MCB CHINT because China is a country with innovative ideas.

0

0

41

74

34

3.95

COO2

I decided to buy MCB CHINT because China has a unique idea in producing.

0

1

38

72

38

3.99

COO3

I decided to buy MCB CHINT because China is a developed country.

0

0

37

73

39

4.01

COO4

I decided to buy MCB CHINT because I had bought other products from China before.

0

0

26

75

48

4.15

COO5

I decided to buy MCB CHINT compared to products from other countries.

0

1

29

67

52

4.14

Total

20.24

Rata-Rata Variabel Country of Origin

4.05

Source: Processed primary data, 2023.

Based on table 8, Country of Origin variables  have an average (mean) of 4.05. The score explains that  Country of Origin at MCB Chint is classified as "very high". Indicator statement "I decided to buy MCB CHINT because I had bought other products from China before." which has the highest mean value of 4.15. However, there is the lowest aspect of Country of Origin, namely the indicator "I decided to buy MCB CHINT because China is a country with innovative ideas" with the lowest average value (mean) of 3.95. This indicates that the buyer considers that the producing country has a unique idea in producing the product.

 

Table 9

 Brand Awareness Variable  Description (X2)

Indicator

1

2

3

4

5

Mean

BA1

When asked to mention MCB product brands, CHINT is the first brand that comes to mind.

0

0

25

90

34

4.06

BA2

The CHINT brand is more familiar than other MCB brands.

0

0

23

94

32

4.06

Indicator

1

2

3

4

5

Mean

BA1

When asked to mention MCB product brands, CHINT is the first brand that comes to mind.

0

0

25

90

34

4.06

BA2

The CHINT brand is more familiar than other MCB brands.

0

0

23

94

32

4.06

BA3

CHINT is my alternative choice when choosing MCB products compared to other brands.

0

0

38

83

28

3.93

BA4

When I see the blue color on the MCB, it reminds me of the CHINT brand.

0

0

25

99

25

4.00

BA5

The CHINT brand is a well-known brand of electrical devices.

0

0

32

91

26

3.96

Total

20.01

Average Brand Awareness Variables

4.00

BA3

CHINT is my alternative choice when choosing MCB products compared to other brands.

0

0

38

83

28

3.93

BA4

When I see the blue color on the MCB, it reminds me of the CHINT brand.

0

0

25

99

25

4.00

BA5

CHINT brand is a well-known brand of electrical devices.

0

0

32

91

26

3.96

Total

20.01

Average Brand Awareness Variables

4.00

Source: Processed primary data, 2023.

Based on table 9, Brand Awareness variables  have an average (mean) of 4.00. This value explains that Brand Awareness on MCB Chint is classified as "very high". The indicator statement "When asked to mention MCB product brands, CHINT is the first brand that comes to mind" which has the highest mean value of 4.06. However, there is the lowest aspect  of Brand Awareness, namely the indicator "CHINT is my alternative choice when choosing MCB products compared to other brands" with the lowest average value (mean) of 3.93. This indicates that buyers perceive that MCB Chint products are very familiar so that they can provide stimulus for purchasing decisions.

Table 10

 Deskripsi Variabel Perceived Price (X3)

Indicator

1

2

3

4

5

Mean

PP1

The price offered by CHINT varies according to type and is affordable by consumers.

0

0

44

78

27

3.89

PP2

The price offered by CHINT has competitiveness with prices offered by other competitors.

0

0

16

103

30

4.09

PP3

The price offered by CHINT is in accordance with the benefits provided by its products.

0

0

15

104

30

4.10

PP4

The price offered by CHINT is in accordance with the quality of the product provided.

0

0

40

76

33

3.95

PP5

The price offered by CHINT is the cheapest.

0

0

45

75

29

3.89

Total

19.93

Average Variable Perceived Price

3.99

Source: Processed primary data, 2023.

Based on table 10 variables Perceived Price has an average (mean) of 3.99. This value explains that the Perceived Price of MCB Chint is classified as "very high". The indicator statement "The price offered by CHINT corresponds to the benefits provided by its product" which has the highest average value (mean) of 4.10. However, there is the lowest aspect  of Perceived Price, namely the indicator "The price offered by CHINT varies according to type and is affordable by consumers" with the lowest average value (mean) of 3.89. This indicates that buyers consider that the price of MCB Chint products varies according to type and is affordable so that it can provide stimulus for purchasing decisions.

Table 11

 Descriptive Variable Perceived Quality (Z)

Indicator

1

2

3

4

5

Mean

PQ1

I believe MCB CHINT has good quality and safe so that it can provide benefits as promised.

0

1

41

68

39

3.97

PQ2

MCB CHINT products are made of good quality materials that are safe when used.

0

1

26

86

36

4.05

PQ3

MCB CHINT products provide a wide selection of types according to my needs and desires.

0

0

34

75

40

4.04

PQ4

MCB CHINT products are durable and not easily damaged during use.

0

1

25

77

46

4.13

PQ5

MCB CHINT products have attractive shapes, designs, and colors.

0

0

29

88

32

4.02

Total

20.21

Average Perceived Quality Variables

4.04

Source: Processed primary data, 2023.

Based on table 11, the Perceived Quality variable  has an average (mean) of 4.04. This value explains that the Perceived Quality of MCB Chint is classified as "very high". The indicator statement "MCB CHINT products are durable and not easily damaged during use" which has the highest mean value of 4.13. However, there is the lowest aspect of Perceived Quality, namely the indicator "I believe MCB CHINT has good quality and is safe so that it can provide benefits as promised." with the lowest mean value of 3.97. This indicates that buyers consider that MCB products are safe and have the promised benefits so that they can provide stimulus for purchasing decisions.

Discussion of Research Results

Country of Origin's Influence on Purcase's Decision

Based on the results of tests conducted in this study, it is known that the direct  influence between Country of Origin has a positive and significant influence on Purchase Decision. This is shown by the test results between the two variables with  the original sample  value of 0.238 which is close to the  value of +1 and has a T-Staistics  value of 3.416 (>1.96) and a P-Value value of 0.001 (<0.05). Thus hypothesis 1 is accepted and rejects H0 which reads Country of Origin has a positive and significant effect on Purchase Decision.

The results of this study are in line with research conducted by (Masangka & Hasbi, 2019)and (Yuana et al., 2021) which stated that Country of Origin has a positive and significant influence on Purchase Decision

The Effect of Brand Awareness on Purchase Decisions

Based on the results of tests conducted in this study, it is known that the direct influence between Brand Awareness has a positive and significant influence on Purchase Decision. This is shown by the test results between the two variables with  the original sample  value of 0.238 which is close to the value of +1 and has a T-Staistics  value of 1.977 (>1.96) and a P-Value value of 0.049 (<0.05). Thus hypothesis 2 is accepted and rejects H0 which reads Brand Awareness has a positive and significant effect on Purchase Decision.

The results of this study are in line with research conducted by Tondang & Silalahi (2022) and Hakim (2019) which states that Brand Awareness has a positive and significant influence on Purchase Decisions.

The Effect of Perceived Price on Purchase Decisions

Based on the results of tests conducted in this study, it is known that it is known that the direct influence between Perceived Price does not have a significant influence on Purchase Decision. This is shown by the test results between the two variables with the original sample  value of 0.070 which is close to value 1 and has a T-Staistics  value of 0.705 (<1.96) P-Value value of 0.481 (>0.05). Thus hypothesis 3 is rejected and accepts H0 which reads Perceived Price has no effect on the Purchase Decision.

The results of this study are in line with research conducted by (Sofyan et al., 2021) which states that Perceived Price does not have an influence on Purchase Decisions.

The Effect of Perceived Quality on Purchase Decisions

Based on the results of tests conducted in this study, it is known that the direct influence between Perceived Quality has a positive and significant influence on Purchase Decision. This is shown by the test results between the two variables with the original sample  value of 0.415 which is close to the value of +1 and has a T-Staistics  value of 2.905 (>1.96) and a P-Value value of 0.004 (<0.05). Thus hypothesis 4 is accepted and rejects H0 which reads Perceived Quality has a positive and significant effect on Purchase Decision.

The results of this study are in line with research conducted by Dinata & Khasanah (2022) which states that Perceived Quality has a positive and significant influence on Purchase Decisions.

Country of Origin's influence on Purcase Decision mediated by Perceived Quality

Based on the results of tests conducted in this study, it is known that indirect influences between Country of Origin have a positive and significant influence on Purchase Decision mediated by Perceived Quality. This is shown by the test results between the three variables with the original sample  value of 0.157 which is close to the value of +1 and has a T-Staistics  value of 2.325 (>1.96) and a P-Value value of 0.020 (<0.05). Thus, hypothesis 5 is accepted and rejects H0 which reads Perceived Quality is able to mediate  Country of Origin positively and significantly to Purchase Decision.

The results of this study are in line with research conducted by (Wibowo et al., 2021) which states that Perceived Quality mediates the influence  of Country of Origin positively and significantly on Purchase Decisions

The Effect of Brand Awareness on Purcase Decisions Mediated by Perceived Quality

Based on the results of tests conducted in this study, it is known that the indirect influence between Brand Awareness does not have a significant influence on Purchase Decisions mediated by Perceived Quality. This is shown by the test results between the three variables with the original sample  value of 0.079 which is close to the value of +1 and has  a T-Staistics  value of 1.534 (<1.96) and a P-Value value of 0.126 (>0.05). Thus, hypothesis 6 is rejected and accepts H0 which reads  Perceived Quality is unable to mediate Brand Awareness against Purchase Decision mediated by Perceived Quality.

The results of this study contradict research conducted by (Nadhiroh & Astuti, 2022) which states that Perceived Quality does not mediate the influence of  Brand Awareness on Purchase Decisions

The Effect of  Perceived Price on Purcase Decisions Mediated by Perceived Quality

Based on the results of tests conducted in this study, it is known that the indirect influence between  Perceived Price has a positive and significant influence on Purchase Decision mediated by Perceived Quality. This is shown by the test results between the three variables with the original sample  value of 0.147 which is close to the  value of +1 and has a T-Staistics  value of 2.121 (>1.96) and a P-Value value of 0.034 (<0.05). Thus hypothesis 7 is accepted and rejects H0 which reads  Perceived Quality is able to mediate Perceived Price positively and significantly to Purchase Decision.

The results of this study are in line with research conducted by (Afwan & Santosa, 2019) which states that Perceived  Quality mediates the influence of Perceived Price positively and significantly on Purchase Decision.

 

 

 

 

CONCLUSION

Based on the problem formulation, research objectives, hypotheses and test results, the conclusions of this study are as follows:

1.   Country of Origin has a positive and significant influence on Purchase Decision.

2.   Brand Awareness has a positive and significant influence on Purchase Decisions.

3.   Perceived Price has no influence on Purchase Decision.

4.   Perceived Quality has a positive and significant influence on Purchase Decisions.

5.   Perceived Quality mediates the influence  of Country of Origin on Purchase Decisions partially. (Partial Mediation)

6.   Perceived Quality does not mediate the influence of Brand Awareness on Purchase Decisions. (No Mediation)

7.   Perceived Quality fully mediates the influence of Perceived Price on Purchase Decisions. (Full Mediation)

 

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Copyright holders:

Biko Yoshia Sirus (2023)

 

First publication right:

JoSS - Journal of Social Science

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