Chapter II

REVIEW OF RELATED LITERATURE

This chapter presents related literature. These are books, web sources, research

studies and unpublished Thesis. Customers' everchanging demands and priorities for

product features force manufacturers to produce quality products, which has a

significant impact on the product or service performance. Product quality is thus linked

to customers' value and satisfaction, both of which are vital for the marketer's product

positioning tools. In this competitive environment and dynamic market, no motorcycle

parts and Accessories store can survive without knowing its product's strengths and

weaknesses. Store personnel must fortify themselves against threats from the market

environment and exploit their strengths or increase profits. To do so, the store must

conduct regular surveys to understand customers' opinions, needs and preferences as

part of incorporating the “voice of customer”. This helps stores to produce products that

meet customers' expectations. Satisfaction entails a person's feelings of pleasure or

disappointment resulting from comparing a product's perceived performance to his or

her expectation. Thus, when a store is positioning itself in a dynamic business

environment with competitive advantage, it is necessary to incorporate the determinants

of customer buying decisions. Consumer behavior may be defined as the decision

process and physical activity in which individuals engage when evaluating, acquiring,

using or disposing of goods or services.1 Studies taking a social perspective on

Motorcycle parts and Accessories promotional strategies in General Santos City,

Philippines have been influenced by social and economic factors. The objective of this
paper is to understand the dimensions of quality and their effect on the purchase

intention of motorcycle parts and accessories as a product, different factors that exist

between customers' perceptions and motorcycle parts and accessories purchase

decisions.

Related Literature

According to Malinda Zellman (2019) To grab a share of the motorcycle parts

business, you need to impress customers with the quality, price and service at your

store. As you prepare for opening day, plan to scope out your competition and make

several important decisions about business operations. From the simple decisions, such

as whether your business will sell new or used parts, to major ones, such as how to

finance your enterprise, you need to be prepared to lead and capture your part of the

market.  Advertise the boat business. Create a business website with professional-

quality photographs of available vessels. Pictures should be taken on a sunny day and

include the following vantage points: a profile shot, rear shot displaying the engine, the

helm and a photo of the interior showing seating arrangements. Suppliers is also one of

the important people in business. Identify manufacturers who can supply you with

products to sell. Longboards are very specialized products, which are frequently custom

built to meet the rider’s requirements. Longboards vary between manufacturers in terms

of the type of foam used, the designs available and the quality of the workmanship.

Competitor Analysis Identify competitors who supply similar products to the same

market and understand the unique features and benefits of their products, pricing and

locations. This will help you determine what your price points should be, as well as

highlighting gaps in the market you may be able to fill.

 According to Wagner & Lindemann the spare part business is defined as the

purchasing, warehousing, selling and delivering of spare parts to customers. Extended

activities including customer services and handling warranty issues are also included in

the definition of the spare part business (Suomala, Sievänen, & Paranko, 2002). Spare

parts, for many companies producing durable products, is the most profitable function of

the corporation (Wagner & Lindemann, 2008).

According to the study of Panama Yanti Purba and his companions in the

International Journal of Social Science and Business, their research was motivated by

the high number of customer complaints in 2019, higher prices compared to

competitors, and the lack of sales targets in the last few months. Their research aimed

to analyze the effect of price, service quality, and promotion on motorcycle spare parts

purchasing decisions. This type of research was a quantitative descriptive study.

Sampling using simple random sampling technique, in order to obtain a sample of 237

people. Data collection using a questionnaire method. The data were analyzed using

multiple linear regression tests. The results of the research and data analysis showed

that partially the product price, service quality, and promotion have a significant

influence on the decision to purchase motorcycle spare parts. Hypothesis testing shows

that Fcount> Ftable (75.204> 2.64) with a significance of 0.000 <0.05. Based on this, it

can be Conclude that price, service quality and promotion have a positive and

significant effect simultaneously on the decision to purchase motorcycle parts. Effect of

Product Prices on Purchasing Decisions. Based on the research results, product prices

have a significant influence on the decision to purchase. This is in line with research
conducted by (Carlos Alberto et al., 2020; Consuegra, Martin et al., 2007; Kukar-Kinney

et al., 2012;

Kurniawan, 2016 which stated that product prices greatly determine consumer

decisions in making purchases. This statement is also supported by (Petricia &

Syahputra, 2015) which stated that the higher a person's perception of a reasonable or

affordable price, the positive impact on purchasing decisions. In this case, the price has

a positive influence on purchasing decisions because a reasonable price will be

affordable and accepted by consumers, so as to increase the decision to make a

purchase. The higher the price reasonableness, the higher the chance for consumers to

make a purchase. Conversely, if the reasonableness of the price is getting lower, the

chances of consumer purchasing decisions will be even lower the Effect of Service

Quality on Purchasing Decisions. Based on the research results, service quality has a

significant influence on the decision to purchase motorcycle spare parts These findings

are in line with the results of research conducted by (Kurniawan, 2016; Petricia &

Syahputra, 2015) which stated that the better the quality of service provided, the higher

the chance for consumers to make purchases. This statement is also supported by

(Chang Li, 2013; Santosa, 2019) which stated that service quality has a significant

impact on purchasing decisions and customer satisfaction. In this case, service quality

has a significant effect on purchasing decisions because good service quality will result

in a good level of satisfaction and comfort for individuals. Satisfaction and comfort will

influence someone to make a purchase. The higher the quality of service, the higher the

chances of consumers making a purchase. Conversely, the lower the quality of service,

the lower the chance for consumers to make a purchase.

 Effect of Promotion on Purchasing Decisions. Based on the research results,

promotion has a significant influence on the decision to purchase motorcycle spare

parts. The results of the study are in line with the research that has been conducted by

(Srisusilawati, 2017; Sumiati & Mujanah, 2018; Yuvita, 2019) who argued that

promotion has a significant role in increasing purchasing decisions. In this case,

promotion has a significant effect on purchasing decisions because through promotion,

consumers will get to know and know the product more. By getting to know and knowing

more about the product, consumers will be interested in making a purchase. The higher

the promotion intensity, the higher the chance for consumers to make a purchase.

Conversely, the lower the promotion intensity, the lower the chance for consumers to

make a purchase Effect of Product Prices, Service Quality, and Promotion on

Purchasing Decisions Based on the results of the research, it showed that the variable

price, service quality and promotion simultaneously affect the purchasing decision of

motorcycle parts. This finding is in line with the statement (Petricia & Syahputra, 2015)

that price, service quality, and promotion are several factors that influence consumer

decisions. This is because prices that are affordable or cheaper can attract consumers

to make purchases, friendly service quality makes consumers feel satisfied in making

purchases, by promoting via social media, newspapers using advertisements can make

consumers quickly find out their advantages and shortcomings of a product and quickly

recognized by consumers can make consumers interested in making a purchase.4.

Conclusion Based on the results of research and discussion, it can be concluded that

price, service quality, and promotion partially have a significant influence on the

decision to purchase motorcycle parts, price, service quality, and promotion

simultaneously have a significant effect on the decision to purchase. Based on this, it is

recommended that companies pay attention to price, service quality, and promotion

variables because these three variables greatly influence purchasing decisions. 

Although I have limited sources of information, the following stores in General

Santos City apply different promotional strategies for customers buying decisions. 

Gensan Moto Extreme - Used an online website for posting their products and prices to

let the customer know about their store and easily purchase by using an online shop. 

Gensan Moto - offers a wide variety of motorcycle accessories and safety gears. They

also post their contact number for the customer to easily reach out for them. 

VGT Cycle Parts and Accessories - Posted their location and even provide a rating

scale for the customer to rate their service and know what they need to improve in their

business. 

A & C Motorcycle Parts - Wholesaler/retailer of motorcycle parts and accessories. Also

sell tires. Posted the transactions option for the customer to choose what’s the easiest

way to order and be Accommodated. All of them used online marketing as their

promotional strategies and to reach out to customers because of the wide connection in

the online world. They also have physical stores for the customer to visit and be

Accommodated at the same time, to provide what they need and assist them with care.