INFLUENCE OF BRAND IMAGE, PRICE, AND PRODUCT

QUALITY ON PURCHASE DECISION ON LAZADA E-

COMMERCE

Nur Hasanah¹
Nur365560@gmail.com
Students of Economics Faculty, State University of Jakarta

Dr. Osly Usman, S.E., M.Bus.Sys 2

Oslyusman@unj.ac.id
Lecturer of Economics Faculty, State University of Jakarta

ABSTRACT

This study examines the relationship between the variables of Brand Image, Price, and
Product Quality on Purchasing Decisions with E-commerce Lazada as its object. Brand
Image is a perception from consumers regarding all information about a brand, Price is a unit
of value that is used as a benchmark for business actors selling products or services to be
borne by buyers, Product Quality is the ability of the product to perform its functions, and
Purchasing Decisions are an idea of individuals in processing, evaluating and finally being
able to make a decision on one or more products. The data used is primary data with Lazada
E-commerce users as respondents, especially Jakarta State University students. The
conclusion of this study, there is a significant relationship between the variables Brand
Image, Price, and Product Quality on Purchasing Decisions.

Keyword : Brand Image, Price, Product Quality, Purchasing Decisions

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Preliminary
As time goes by, increasingly sophisticated, modern technology is
taking over. The development of technology that is increasingly fast makes
human life gradually change to a more advanced direction. Especially because
human knowledge continues to innovate in technology so that a technology is
created that can help and facilitate human work. An example of this
technological development is the Internet. With the internet, it is easier for
humans to search and find information in all corners of the world. Not only
that, humans can do some activities that cannot be done directly, for example,
such as buying necessities for daily life or just for wants.

As we know, the situation in which this increasingly sophisticated

technology makes human work easier. From one of these technologies, an
application for online shopping is created that is available on mobile phones.
With this application, humans can easily make purchases of something. It
certainly has a big influence on human behavior. The convenience and
convenience offered by this application make people prefer to make purchases
on the online shop application rather than having to walk outside either to the
market or the mall. Therefore, we will be familiar with it because making
purchases online has become a human lifestyle today.

The results of collaborative research between Google and GfK reveal,

in Indonesia, there are 4 types of user profiles or online buyers. These types
are Innovators, Early Adopters, Gaptek (Gap-Tech), and Late Bloomers.

Innovator profile types, referring to the research, are those who have
high incomes, are online with more than one device, pay attention to the
warranty of a product they want to buy, and prefer to make payments using
internet banking, and prefer if the online store they visit has a variety payment
method.

Furthermore, the type of online shopper or user in Indonesia is Early

Adopter. From research initiated by Google and GfK, it is known that this type
is those people who like to hunt for discounts at online shops that are scattered
in cyberspace. This type provides an understanding that the price measure can

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influence a person in making a purchase. This type will make a purchase when
the price of the desired product is decreasing (discounted).

The 3rd type is a type known as Gaptek aka Gap-Tech, which is the
type with people who have a distance from technology. In line with the Early
Adopter type, the Gaptek type is also a type of discount hunter in scattered
online stores. Interestingly, people who are in the clueless type prefer to get
direct information from a brand or product brand they want to buy, not on
foreign information about a product they want to buy. After the price affects
someone to make a purchase, through this type we get an understanding that
the size of a product or brand also affects. The better a product or brand, the
greater the desire for someone to make repeat purchases. This is very
important for companies to continue to innovate their brands or products in
order to add value to consumers.

Lastly, is the Late Bloomers type. In this type, the people are not too
concerned with online shops. As long as the item to be purchased is available,
people who enter this type will immediately buy it. It is also known that
people who are in the Late Bloomers type are people who prefer the COD
(cash on delivery) method.

In order for e-commerce to continue to experience development,

companies need trust from consumers to make repeat purchases. For this
reason, companies must continue to innovate their ideas to make them more
attractive and in accordance with the needs of consumers today. Tjiptono
(1997: 19) states that success in competition will be fulfilled if the company
can create customer trust. Apart from creating trust, to achieve success,
companies need a variety of other efforts. These efforts include creating
quality products at competitive prices, as well as being able to provide higher
satisfaction to customers. Today, customers now have a much greater and
more diverse demand for value because customers are faced with a wide
selection of products,

Based on the explanation above, the problem of this research is about

price, brand and product. For this reason, the authors conducted research to

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determine the effect of price, brand image and product quality on purchasing
decisions.

Brand Image Theory (X1)

According to Tjiptono (2009: 46) Brand image, which is a description
of the association and consumer confidence in certain brands. According to
Kotler and Keller (2009), brand image is a process by which a person selects,
organizes, and interprets information input to create a meaningful image.
Kertajaya (2007) expressed his opinion that what is meant by brand image is
the excitement of all associations related to a brand that is already in the minds
of consumers.

Brand image is a perception from consumers about all information

about the brand which can influence consumer purchasing decisions.
Repurchasing or not all depends on consumer perceptions of a brand. For this
reason, a company must create and continue to innovate a brand to make it
good, more attractive, and of course it must be in accordance with the tastes of
today's consumers because it can attract consumers to make repeat purchases.

According to Kertajaya (2007), the factors that influence brand image are
as follows:
1. Quality or quality, relating to the quality of products offered by
manufacturers with certain brands.
2. Trustworthy or reliable, relating to opinions and agreements that are
formed by the community about a product that is consumed.
3. Usefulness or benefits, which are related to the function of a product that
can be used by consumers
4. Services, which are related to the duties of producers in serving
consumers.
5. Risks relate to profit and loss experienced by consumers.
6. Price, in this case that is issued by consumers to influence a product, can
also affect the image in relation to the high and low or the amount of
money in the long term.

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7. Image, which is owned by the brand itself, namely in the form of
customers, opportunities and information related to a particular product
brand.

Price Theory (X2)

Saladin (2007) states that price is the monetary amount charged by a
business unit to buyers or customers for goods or services sold or delivered.
Tjiptono (2008) states that price is the amount of money and services or goods
available that are exchanged by buyers to get a wide selection of products and
services provided by the seller. Price according to Swastha (2009: 147) is the
amount of money (plus a few items if possible) required to get a combination
of goods and services. According to Kotler and Armstrong (2008: 345), price
is the amount of money billed for a product or service and the amount of value
that is exchanged by consumers for the benefits of owning or using these
products and services.

Price is a unit of value used as a benchmark for business actors selling

their products or services to be borne by buyers and later this will lead to
bartering, namely the exchange between money and goods. If consumers will
get the goods according to their needs, the seller will receive a profit in the
form of money. Alma (2007) explains that companies must consider many
factors in determining pricing policies, namely:

1. Choose a pricing destination.

2. Specifies a request.
3. Estimating costs.
4. Analyze competitors' prices and offers.
5. Choose a pricing method.
6. Choose the final price.

Product Quality Theory (X3)

According to Kotler and Keller (2010: 347) product quality is the

ability of a product to carry out its functions, these capabilities include
durability, reliability, and overall accuracy. According to Davis (in Lupiyoadi,

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2008), product quality is a dynamic condition related to goods, services,
people, products, and the environment that meet or exceed expectations.

Product quality is the product's ability to perform its functions which

will later become a benchmark in improving quality so that consumers can
give a value whether the product is quality or not. Of course the quality of a
product is very important to increase consumer trust and attractiveness
because quality greatly affects consumer purchasing decisions. There are
several factors that affect product quality according to Tjiptono (2001: 25),
these factors include:

1. Reliability (Reliability)
Reliability of a product which indicates the level of quality which means a
lot to consumers in choosing a product.
2. Conformance to Specifications
Namely the extent to which design and operating characteristics meet
predetermined standards.
3. Durability
Regarding how long the product can continue to be used which is good.

Purchasing Decision Theory (Y)

According to Sangadji and Sopiah (2013: 121), purchasing decisions
are all intentional behavior based on the desires that are generated when
consumers consciously choose one of the available alternative actions.
According to Kotler and Armstrong (2008: 177) consumer purchasing
decisions are inseparable from how consumers go through several stages,
namely knowing the problems faced until the occurrence of consumer
purchase transactions and purchasing decisions are the stage of the decision
process where consumers actually purchase products.

Purchasing decision is an individual thought in processing, evaluating

and finally being able to make a decision on one or more products that are
believed to be quality products with the best brands. According to Kotler and
Armstrong (2008), there are four factors that influence consumer behavior in
making a purchase decision, namely:

1. Cultural Factors

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 Cultural factors have a broad and deep influence on behavior, including
culture (culture, sub-culture, and social class). Culture is an arrangement of
the basic values of perceptions, desires, and behaviors that members of a
society learn from their families and other important institutions.
a. Culture, is a determinant factor and a person's desires and behavior.
b. Sub culture, is a group of people with a shared value system based on
the same life experiences and situations. Sub culture includes
citizenship, religion, racial group, and geographic area. The marketing
department must design products and marketing programs that are
tailored to their needs.
c. Social class, are parts of society that are relatively permanent and
neatly arranged and its members have the same values, interests and
behavior.Social class is not determined by one factor, such as income,
but is determined as a combination of work, income, education and
welfare. .
2. Social Factors
Apart from cultural factors, consumer behavior is also influenced by social
factors such as reference group, family, and role and status.
a. Reference groups are groups that have direct or indirect influence on a
person's behavior.
b. Family, family members greatly influence buyer behavior. We can
distinguish two families in life consisting of parents, a person obtains
an orientation towards religion, politics and economics and an
understanding of personal ambition.
c. Role and Status, someone who participates in various groups will lead
to a certain position. Each person will carry out a certain role that will
influence their behavior, so that it is possible for different behavior to
exist in each role. Each role carries a status that reflects the rewards
given by society.
3. Personal Factors
A buyer's decision is also influenced by personal characteristics such as the
buyer's age and life cycle stage, occupation, economic circumstances,
lifestyle and personality.

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 a. Age and life cycle stage, People who buy different goods and services
throughout their life. A person's needs and tastes will change with age.
Purchases are shaped by the stages of the family life cycle, so
marketers need to pay attention to changes in purchase interest related
to the human life cycle.
b. A person's job also affects his consumption pattern. Thus, marketers
can identify groups associated with one's position with regard to their
interest in the product or service they are going to buy.
c. Economic conditions, the choice of products is very much influenced
by one's economic situation. The state of the economy includes
expendable income (level of income, stability and time patterns).
4. Psychological Factors
a. Motivation, a person has many needs at any given time. Some of the
needs are biogenic. Such needs come from psychological conditions
related to tension / tension such as hunger, thirst and displeasure.
Motivation is a need that is sufficient to encourage someone to act.
b. Perception, the process of how a person selects, arranges and
interprets input information to create a meaningful picture.

Framework

Citra
X1 Merek
H1

Harga Keputusan
X2 H2 Pembelian Y

H3
Kualitas
X3 Produk

H4

Picture 1

Framework

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 In picture 1, we can see the relationship between the variables. The
relationship between the variables of brand image, price, and product quality
on purchasing decisions refers to the results of research by Aditya (2017)
which states that brand image, price, and product quality significantly
influence purchasing decisions.

Hypothesis
H1: There is a positive and significant influence between Brand Image (X1)
on Purchasing Decisions (Y) on Lazada E-commerce

H2: There is a positive and significant influence between Price (X2) on

Purchasing Decisions (Y) on Lazada E-commerce

H3: There is a positive and significant influence between Product Quality (X1)
on Purchasing Decisions (Y) on Lazada E-commerce

H4: There is a positive and significant influence between Brand Image (X1),
Price (X2), and Product Quality (X3) on Purchasing Decisions (Y) on Lazada
E-commerce

Research methods
In this case, the researcher uses quantitative research with comparative
causal type because it discusses the cause-and-effect relationship of two or
more variables, namely the effect of independent variables in the form of
brand image, price, and product quality on the dependent variable, namely
purchasing decisions with Lazada e-commerce as the object.

Population and Sample

According to Sugiyono (2010)population is a generalization area
consisting of objects or subjects that have certain qualities and characteristics
that are determined by the researcher to be studied and then draw conclusions.
In this case the researcher uses Jakarta State University students as population
objects.

According to Sugiyono (2008) the sample is part of the number and

characteristics possessed by this population. The sampling technique used in

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this study was quota sampling with a predetermined number of 100
respondents.

Data collection technique

The data collection technique used in this research is by means of a
survey. According to Malhotra(2009)The survey method is by distributing
structured questionnaires given to respondents designed to obtain more
specific information. The data used are primary data for the independent
variable (brand image, price, product quality) and the dependent variable
(purchase decision)

Operational Definition of Variables

According to Sugiyono (2017: 39) the variables are: "An attribute or
nature or value of people, objects or activities that have certain variations that
are determined by researchers to be studied and then draw conclusions." In
this study, the independent variables are Brand Image (X1), Price (X2),
Product Quality (X3) while the dependent variable is the Purchase Decision
(Y) which will be explained as follows :

Variable Variable definitions Indicator

Brand Brand image is a perception from a. Brand performance

image (X1) consumers about all information b. Modern
about the brand which can c. Popular
influence consumer purchasing
decisions.

Price (X2) Price is a unit of value used as a a. Affordability of

benchmark for business actors prices
selling their products or services to b. Price compatibility
be borne by buyers and later this with product
will lead to bartering, namely the quality
exchange between money and c. Price

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 goods. competitiveness
d. Price match with
benefits

Product Product quality is the product's a. Shape

quality (X3) ability to perform its functions b. Features
which will later become a c. Performance
benchmark in improving quality so d. Resistance
that consumers can give a value e. Reliability
whether the product is quality or f. Design
not.

Purchase Purchasing decision is an a. Product type

decision (Y) individual thought in processing, decisions
evaluating and finally being able to b. Product form
make a decision on one or more decisions
products that are believed to be c. Brand decision
quality products with the best d. Decision when to
brands. buy a product
e. Payment method
decision
Analysis Techniques and Management Data
Based on the data source, the data analysis used in this study was
Statistical Package for the Social Sciens (SPSS). SPSS is an application
program that has high statistical analysis capabilities and a data management
system in a graphical environment using simple descriptive menus and dialog
boxes so that it is easy to understand how to operate it. The data analysis
criteria used in this study through SPSS software, namely: Normality Test,
Multicollinearity Test, Heteroscedasticity Test, Multiple Regression Analysis,
T and F Test, and Test of the coefficient of determination.

Statistical Hypothesis
A statistical hypothesis is a statement or assumption about the state of
the population which is temporary or weak in the level of truth. A statistical

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hypothesis must be tested, because it must be a quantity in order to be
accepted or rejected. Accepted if the test results confirm the statement and will
be rejected if there is denial of the statement. This study uses statistical
hypotheses that will be tested through SPSS software.
Ho: There is no influence between Brand Image, Price, and Product Quality on
Purchasing Decisions of Jakarta State University students.
H0: β = 0
H1: There is an influence between Brand Image, Price, and Product Quality on
Purchasing Decisions of Jakarta State University students.
H1: β ≠ 0

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 RESULTS AND DISCUSSION
A. Classic assumption test
1. Normality test

One-Sample Kolmogorov-Smirnov Test

Unstandardized
Residual

N 100
Normal Parametersa, b Mean .0000000
Std. Deviation 3.14690899
Most Extreme Differences Absolute .099
Positive .099
Negative -.052
Statistical Test .099
Asymp. Sig. (2-tailed) .200c

a. Test distribution is Normal.

b. Calculated from data.
c. Lilliefors Significance Correction.

From the output above, we get a statistical test of 0.099 and on the
Asymp line. Sig (2-tailed) of 0.200 or it can also be written as a probability
value (p-value) = 0.200> 0.05 or Ha is accepted. Thus, the data is normally
distributed

2. Multicollinearity Test

Coefficientsa
Unstandardized Standardized
Coefficients Coefficients t Sig. Collinearity Statistics

Model B Std. Error Beta Tolerance VIF

1 (Constant) 6,636 4,168 1,592 .115

X1 .242 .115 .213 2,102 .038 .590 1,694

X2 .260 .102 .246 2,553 .012 .651 1,535

X3 .347 .110 .316 3,153 .002 .601 1,663

a. Dependent Variable: Y

Based on the "Coefficients" output table in the "Collinearity Statistics"

section, it is known that the Tolerance value for the Brand Image variable (X1)
to the Purchase Decision (Y) is 0.590, Price (X2) to Purchase Decision (Y) is

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 0.651, and Product Quality (X3) for Purchase Decision (Y) 0.601 above 0.10.
Meanwhile, the VIF value for the Brand Image variable (X1) on Purchasing
Decisions (Y) is 1.694, Price (X2) for Purchasing Decisions (Y) is 1.535, and
Product Quality (X3) on Purchasing Decisions (Y) is 1.663 below 10.00.

3. Heteroscedasticity Test

Based on the Scatterplots output above, it is known that:

a. The scatter data points are above or below or around 0

b. The dots don't cluster just above or below it
c. The scattering of the data points should not form a wavy pattern that
widens and then narrows and widened again
d. The distribution of data points is not patterned

Thus, it can be concluded that there is no heterocedastity problem,

until a good and ideal regression model can be fulfilled

B. Multiple Regression Analysis Test

Coefficientsa
Unstandardized Standardized
Coefficients Coefficients t Sig. Collinearity Statistics

Model B Std. Error Beta Tolerance VIF

1 (Constant) 6,636 4,168 1,592 .115

X1 .242 .115 .213 2,102 .038 .590 1,694

X2 .260 .102 .246 2,553 .012 .651 1,535

X3 .347 .110 .316 3,153 .002 .601 1,663

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a. Dependent Variable: Y
From the results of the multiple linear regression test above, it can be seen
that:

1. A constant of 6.636 indicates that if the independent variables (Brand

Image, Price, and Product Quality) are considered constant, the Y value
(Purchase Decision) is 6.636.
2. Brand Image regression coefficient 0.242. This means that for every
increase in Brand Image by 1 unit, the dependent variable, namely the
Purchase Decision, will decrease by 0.242. It can be concluded that the
coefficient is positive, meaning that there is a positive relationship between
the dependent variable and the independent variable.
3. Price variable regression coefficient of 0.260. This means that every 1 unit
increase in price, the Purchase Decision will increase by 0.260. It can be
concluded that the coefficient is positive, meaning that there is a positive
relationship between the dependent variable and the independent variable.
4. The regression coefficient for the Product Quality variable was 0.347. This
means that for every increase in Product Quality by 1 unit, the Purchase
Decision will increase by 0.347. It can be concluded that the coefficient is
positive, meaning that there is a positive relationship between the
dependent variable and the independent variable.

C. Hypothesis testing
1. Simultaneous Test (F)

ANOVAa
Model Sum of Squares df Mean Square F Sig.

1 Regression 709,709 3 236,570 23,165 .000b

Residual 980,401 96 10,213

Total 1690,110 99

a. Dependent Variable: Y
b. Predictors: (Constant), X3, X2, X1

Based on the output above, it is known that the significance value for the
effect of the F calculated value is 23.165> F Table 2.69, so it can be concluded
that H4 is accepted, which means that there is a significant effect X1, X2, and
X3 on Y.

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 2. Partial Test (T)
Coefficientsa
Unstandardized Standardized
Coefficients Coefficients t Sig. Collinearity Statistics

Model B Std. Error Beta Tolerance VIF

1 (Constant) 6,636 4,168 1,592 .115

X1 .242 .115 .213 2,102 .038 .590 1,694

X2 .260 .102 .246 2,553 .012 .651 1,535

X3 .347 .110 .316 3,153 .002 .601 1,663

a. Dependent Variable: Y

Based on the table above, it can be concluded that the hypothesis testing
of each independent variable on the dependent variable is as follows:

a. First Hypothesis Testing (H1)

The Sig. for the effect of X1 on Y is 0.038 <0.05 and the t-value is 2.102>
1.982, so it can be concluded that H1 is accepted and has a significant
effect on Y.
b. Second Hypothesis Testing (H2)
The Sig. for the effect of X2 on Y is equal to 0.012 <0.05 and the t value
of 2.553> 1.982 so it can be concluded that H2 is accepted and has a
significant effect on Y.
c. Third Hypothesis Testing (H3)
The Sig. for the effect of X3 on Y is 0.002 <0.05 and the t value is 3.153>
1.982 so it can be concluded that H3 is accepted and has a significant
effect on Y.

3. Coefficient of Determination

Model Summary b

Adjusted R Std. Error of the

Model R R Square Square Estimate

1 .648a .420 .402 3,196

a. Predictors: (Constant), X3, X2, X1

b. Dependent Variable: Y

Based on the table above, it is known that the coefficient of

determination or Adjusted R Square is 0.402. The coefficient of determination

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(R Square) is 0.402 or equal to 40.2%. This figure means that the variable
Brand Image (X1), Price (X2), and Product Quality (X3) on the Purchasing
Decision variable (Y) is 40.2%. While the remaining 59.8% is influenced by
other variables outside the variables studied.

Conclusion
The influence of brand image on purchasing decisions is known
through the Sig. is 0.038 <0.05 and the t value is 2.102> 1.982, so it can be
concluded that H1 is accepted and Brand Image has a significant effect on
Purchasing Decisions. The effect of price on purchasing decisions is known
through the Sig. is equal to 0.012 <0.05 and the t value of 2.553> 1.982 so it
can be concluded that H2 is accepted and price has a significant effect on
Purchasing Decisions.
The effect of product quality on purchasing decisions is known through
the Sig. is equal to 0.002 <0.05 and the t value of 3.153> 1.982 so it can be
concluded that H3 is accepted and product quality has a significant effect on
purchasing decisions. Furthermore, the effect of F count 23.165> F Table
2.69, so it can be concluded that H4 is accepted, which means that there is a
significant influence between Brand Image, Price, and Product Quality on
Purchasing Decisions.

Suggestion
With regard to the research results obtained, some suggestions that can be put
forward for online shop companies, especially Lazada, are to be able to build
and continue to innovate their brands and products at competitive prices so
that they can increase consumer consideration for making repeat purchases.

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