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The Influence of Advertising, Brand Image, Service Quality and Price On Word of Mouth and Its Impact On The Purchase Decision of Mekaar PT. PNM
The Influence of Advertising, Brand Image, Service Quality and Price On Word of Mouth and Its Impact On The Purchase Decision of Mekaar PT. PNM
The Influence of Advertising, Brand Image, Service Quality and Price On Word of Mouth and Its Impact On The Purchase Decision of Mekaar PT. PNM
ISSN No:-2456-2165
Abstract:- This study aims to determine the effect of 97), advertising is a non-personal presentation and promotion
advertising, brand image, service quality and price on of any form of idea, product, or service by a particular sponsor
word of mouth and their impact on purchasing decisions and is paid. In addition, brand image is involved in influencing
for Mekaar products at PT PMN. Data were collected consumers in purchasing decisions. Tjiptono (2015: 49) reveals
using a questionnaire with 55 respondents from Mekaar that brand image is a description of consumer associations and
customers. Data analysis using smartPLS application. The beliefs about certain brandsA brand image is a consumer's
sampling method used in this study is non-probability, and observations and beliefs that are reflected in the consumer's
the data test uses convergence validity, Cronbach's alpha, organization and memory. According to Gronroos (1990: 27)
combined reliability, and discriminant validity to test and of Ratminto and Atik (2005: 2), a service is an invisible
prove the study hypothesis. The results of a TStatistic and (intangible) activity or set of activities, provided by interaction
PValue study show that variable ads do not significantly or service between consumers and employees. Occurs as a
affect word-of-mouth and purchase decisions, variable result of other things that are done. A company designed to
brand images do not significantly affect word-of-mouth solve consumer or customer problems. Hasan (2008: 298)
and purchase decisions, and variable service quality is not. argues that all prices are a form of monetary cost that
I am. Impact on word-of-mouth and purchase decisions. consumers sacrifice to acquire, own, or use different
Price variables have a big impact on word-of-mouth combinations of goods and services from their products.
purchase decisions, reviews do not have a big impact on According to Kotler & Keller (2012), word-of-mouth
purchase decisions. communication (WOM) or word-of-mouth communication is a
communication process in which both individuals and groups
Keywords:- Advertising, Brand Image, Service Quality, Price, make recommendations for products or services aimed at
Word of Mouth, Purchase Decision. providing individuals. Information will be provided.
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ISSN No:-2456-2165
is required to coordinate marketing programs so that they are Meanwhile, according to Kotler & Keller (2016: 422)
coordinated and integrated synergistically. A marketing plan is service quality is a performance that can be offered by one
the name for this technique. In general, attempts to expand person to another. According to Parasuraman (1988:23) service
primary demand yield the best marketing chances, while efforts quality is a reflection of consumers' evaluative perceptions of
to expand selective demand yield the best growth opportunities. the services received at a certain time. Service quality is
(Kotler and Armstrong, 2012). determined based on the level of importance on service
dimensions.
B. Advertisement
The word advertising or advertising comes from the E. Price
Greek word and means to more or less lead people to ideas. Hasan (2008: 298) argues that all prices are all forms of
Regarding a complete understanding of advertising, advertising monetary cost that consumers sacrifice to acquire, own, or use
by Faela Sufa (2016) is an information medium created in a different combinations of goods and services from a product.
specific way to attract viewers, is original, and consumers do Companies must first set a selling price, especially when
something voluntarily. It has certain compelling traits as it developing a new product. Another definition of price is
should be done according to the wishes of the advertiser. everything given by customers to get the advantages offered
According to Kotler, Philip & Armstrong (2011: 97), by the company's marketing mix (Cannon, et al, 2008).
advertising is a non-personal presentation and promotion of any According to Angipora (2002), price is the amount of money
form of idea, product, or service by a particular sponsor and is (possibly plus some goods) required to obtain some
paid. By Djaslim's definition of advertising, Saladin (2010: combination of a product and the accompanying service.
129) includes all forms of impersonal presentations and Meanwhile, the definition of price according to Kotler and
promotion of ideas, including advertising for goods and Armstrong (2001: 439) is the amount of money charged for a
services paid by sponsors. Meanwhile, Kasali (2011: 9) product or service, or the amount of value exchanged by
defines advertising as a static medium and prioritizes visual consumers for the benefits of having or using the product or
messages. service.
H. Theoritical Framework
Based on these theory above, it could be described a
theoritical framework for these titles as follows:
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ISSN No:-2456-2165
IV. RESULTS AND DISCUSSIONS
A. Cronbach's Alpha
Table 1 shows that all the data in the questionnaire
correspond to valid criteria and the measurement of the validity
factor of the load factor value or standardized load estimate is
0.05. Therefore, all research indicators can be used as effective
data collectors to investigate the problem for investigation.
Information :
- AV (X1) : Advertising
- BI (X2) : Brand Image
- SQ (X3) : Service Quality
- PR (X4) : Price
- WM (Y1) : Word Of Mouth
- PD (Y2) : Purchase Decision TABLE 1. CRONBACH'S ALPHA
I. Hypothesis Based on Table 1, the test results show that all test objects
The hypothesis of this cases that could be seen as in meet the test requirements with a Cronbach's alpha value
follows: greater than 0.7.
H1: There is a significant influence between advertising on
Mekaar product purchasing decisions. B. Composite reliability
H2: There is a significant effect between advertising on the Composite reliability is a measure of the configuration
Word of Mouth of Mekaar products. displayed in the Latent Variable Factors view.
H3: There is a significant influence between brand image on
purchasing decisions for Mekaar products.
H4: There is a significant influence between brand image on
the Word of Mouth of Mekaar products.
H5: There is a significant influence between service quality on
purchasing decisions for Mekaar products.
H6: There is a significant influence between service quality
and word of mouth of Mekaar products.
H7: There is no significant effect between price on word of
mouth of Mekaar products.
H8: There is a significant influence between price on
purchasing decisions for Mekaar products
H9: There is a significant influence between word of mouth on TABLE 2. COMPOSITE RELIABILITY
purchasing decisions for Mekaar products.
Based on Table 2, the test results show that all measuring
III. METHODOLOGY items have met the test requirements with a Composite
reliability value above 0.7.
The data used in this research is quantitative data. The
primary data source in this study was the customers of PT G. Hypothesis Test
Permodalan Nasional Madani at the Mekaar Citeureup branch To test the hypothesis by using statistical values, for alpha
which were distributed by Google. A closed questionnaire 5% the t-statistic value used is 1.96.
distribution form. In this study, a questionnaire or questionnaire
was given online to PT Permodalan Nasional Madani
customers to determine the effect of advertising, brand image,
service quality and price on word of mouth and their impact on
purchasing decisions for PNM Mekaar products. The data
analysis method used in this research is Structural Equation
Modeling or Structural Equation Model using SmartPLS
software.
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ISSN No:-2456-2165
The relationship between service quality and purchasing
decisions for Mekaar products. Based on the test results on the
effect of service quality on purchasing decisions, Mekaar
products have a T-Statistic of 0.521 0.198 (≥1.960) and a P-
value of 0.602 (≥0.05) so it can be concluded that the fifth
hypothesis is rejected so that service quality has no significant
effect on purchasing decisions.
According to Table 3, the hypothesis test is as follows: The relationship between word of mouth and purchasing
The relationship between advertising and purchasing decisions for Mekaar products. Based on the test results on the
decisions for Mekaar products. Based on the test results on the effect of word of mouth on purchasing decisions, Mekaar
effect of advertising on purchasing decisions, Mekaar has a T- products have a T-Statistic of 1.136 (≥1.960) and a P-value of
Statistic of 0.198 (≥1.960) and a P-value of 0.844 (≥0.05), so it 0.257 (≥0.05) so it can be concluded that the ninth hypothesis
can be concluded that the first hypothesis is rejected so that is rejected so that word of mouth has no significant effect on
advertising has no significant effect on purchasing decisions. purchasing decisions.
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Volume 6, Issue 12, December – 2021 International Journal of Innovative Science and Research Technology
ISSN No:-2456-2165
that the price factor can increase the occurrence of word of [14]. Ghozali. (2016). Aplikasi Analisis Multivariete Dengan
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