The Effect of Price and Product Quality on Consumer Purchasing Decisions through Brand Image

Authors

  • Linda Agusniar Sihombing Department of Economics, Faculty of Economics and Business, Universitas Mulawarman, Kota Samarinda, 75119 Kalimantan Timur, Indonesia
  • Suharno Suharno Department of Economics, Faculty of Economics and Business, Universitas Mulawarman, Kota Samarinda, 75119 Kalimantan Timur, Indonesia
  • Kuleh Kuleh Department of Economics, Faculty of Economics and Business, Universitas Mulawarman, Kota Samarinda, 75119 Kalimantan Timur, Indonesia
  • Tetra Hidayati Department of Economics, Faculty of Economics and Business, Universitas Mulawarman, Kota Samarinda, 75119 Kalimantan Timur, Indonesia

DOI:

https://doi.org/10.56225/ijfeb.v2i1.170

Keywords:

price, product quality, purchase decision, brand image

Abstract

Indonesia is categorized as Southeast Asia's largest economic potential, with abundant natural resources spread across various provinces. Indonesia experienced global financial crises and a slowdown in early 2019 due to the coronavirus (COVID-19) pandemic. Many sectors, such as mining, energy, and construction, use heavy equipment, especially Crawler Excavators. The Mining sector is still the prima donna of business in Indonesia due to the increasing price of commodities such as coal and other minerals, so there are also many companies as heavy equipment manufacturers, especially PT. Zoomlion Indonesia Heavy Industry. Thus, this study examines the effect of price and product quality on consumer purchasing decisions through brand image. This study is designed using this quantitative method. It is carried out with an exploratory approach which aims to explore and examine more deeply the phenomena that occur between the constructs under study. The population is all companies that shop or buy 20 ton Class Crawler Excavator heavy equipment products, namely PT. Zoomlion Indonesia Heavy Industry in East Kalimantan from 2017-2021, totaling 130 product sales. The results indicated that price and product quality positively and significantly affect purchase decisions. Also, price and product quality positively and significantly affect brand image. Besides that, this study found that brand image mediates the relationship between price and product quality in purchase decisions. This study concludes that brand image plays an important role as a mediator between price and product quality in purchase decisions at PT. Zoomlion Indonesia Heavy Industry.

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Published

2023-03-31

How to Cite

Sihombing, L. A., Suharno, S., Kuleh , K. ., & Hidayati, T. (2023). The Effect of Price and Product Quality on Consumer Purchasing Decisions through Brand Image. International Journal of Finance, Economics and Business, 2(1), 44–60. https://doi.org/10.56225/ijfeb.v2i1.170

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