The Influence of Product Quality, Price Fairness, Brand Image, and Customer Value on Purchase Decision of Toyota Agya Consumers: A Study of Low Cost Green Car

Authors

  • Freddy Pandapotan Simbolon Bina Nusantara University
  • Elvira Rossi Handayani Bina Nusantara University
  • Menik Nugraedy Bina Nusantara University

DOI:

https://doi.org/10.21512/bbr.v11i3.6420

Keywords:

product quality, price fairness, brand image, customer value, purchase decision, Low Cost Green Car (LCGC)

Abstract

The research aimed to investigate the influence of product quality, price fairness, brand image, and customer
value on purchase decision in the Low Cost Green Car (LCGC). The research applied a quantitative method
with survey design. It was conducted in Auto2000 Jakarta with a sample of 100 Toyota Agya owners using an
accidental sampling technique. Data analysis for hypothesis test used path analysis calculated with SPSS software.
The research findings indicate that product quality, brand image, and customer value significantly influence the
purchase decision of Toyota Agya consumers. Meanwhile, price fairness has no effect on the purchase decision.
The results also show that product quality, price fairness, and brand image affect customer value. Based on these
findings, in developing LCGC, manufacturers must pay attention to product quality, build brand reputation, and
create more value for consumers.

Dimensions

Plum Analytics

Author Biographies

Freddy Pandapotan Simbolon, Bina Nusantara University

Management Department, BINUS Business School Undergraduate Program

Elvira Rossi Handayani, Bina Nusantara University

Management Department, BINUS Business School Undergraduate Program

Menik Nugraedy, Bina Nusantara University

Management Department, BINUS Business School Undergraduate Program

References

Agmeka, F., Wathoni, R. N., & Santoso, A. S. (2019). The influence of discount framing towards brand reputation and brand image on purchase intention and actual behaviour in e-commerce. Procedia Computer Science, 161, 851-858. https://doi.org/10.1016/j.procs.2019.11.192

Ahmad, I. H., Mohamed, N., & Hussain, A. R. C. (2016). Social and technical perspective of individual’s intention to purchase mobile application. In Geospatial Research: Concepts, Methodologies, Tools, and Applications (pp. 1484-1511). IGI Global.

Albari, & Safitri, I. (2018). The influence of product price on consumers’ purchasing decisions. Review of Integrative Business and Economics Research, 7(2), 328-337.

Anwer, E., Deshpande, S., Derry, R., & Basil, D. Z. (2020). The value of values in business purchase decisions. Journal of Business & Industrial Marketing. https://doi.org/10.1108/JBIM-03-2019-0111

Armstrong, G., & Kotler, P. (2015). Marketing: An introduction (12th ed.). Pearson.

Auto2000. (2020). Apa itu LCGC: Segala hal yang perlu anda tahu tentang kelebihannya. Retrieved September 25th, 2020 from https://auto2000.co.id/berita-dan-tips/apa-itu-LCGC#

Blasco-Arcas, L., Hernandez-Ortega, B. I., & Jimenez-Martinez, J. (2016). Engagement platforms: The role of emotions in fostering customer engagement and brand image in interactive media. Journal of Service Theory and Practice, 26(5), 559-589. https://doi.org/10.1108/JSTP-12-2014-0286

Calvo-Porral, C., Faíña Medín, J. A., & Montes-Solla, P. (2016). Relational, functional benefits and customer value in large retailing: A cross-format comparative analysis. Journal of International Food & Agribusiness Marketing, 28(2), 132-148. https://doi.org/10.1080/08974438.2015.1036483

Chung, J. Y., & Kim, Y. G. (2016). Structural relationships among health benefits, price comparison, and price fairness. Asia Pacific Journal of Tourism Research, 21(3), 312-327. https://doi.org/10.1080/10941665.2015.1048264

Dadwal, S. S. (2017). Service sector and antecedents of marketing strategies for emerging markets: A case of Indian Market. In V. Nadda, S. Dadwal, & R. Rahimi (Eds.), Promotional strategies and new service opportunities in emerging economies (pp. 1-31). IGI Global.

De Medeiros, J. F., Ribeiro, J. L. D., & Cortimiglia, M. N. (2016). Influence of perceived value on purchasing decisions of green products in Brazil. Journal of Cleaner Production, 110(January), 158-169. https://doi.org/10.1016/j.jclepro.2015.07.100

Eka, D., & Hamdaini, Y. (2017). Pengaruh customer value terhadap purchase decision melalui beauty blogger di Youtube (Studi pada pelanggan kosmetik local brand di Sumatera Selatan). Jurnal Manajemen dan Bisnis Sriwijaya, 15(4), 183-196. https://doi.org/10.29259/jmbs.v15i4.5717

Febriyantoro, M. T. (2020). Exploring YouTube marketing communication: Brand awareness, brand image and purchase intention in the millennial generation. Cogent Business & Management, 7(01), 1-17. https://doi.org/10.1080/23311975.2020.1787733

Gök, O., Ersoy, P., & Börühan, G. (2019). The effect of user manual quality on customer satisfaction: The mediating effect of perceived product quality. Journal of Product and Brand Management, 28(4), 475-488. https://doi.org/10.1108/JPBM-10-2018-2054

Gunadi, N. P. (2015). The influence of product quality and consumer perception to purchase decision on Canon DSLR camera in Manado. Jurnal EMBA: Jurnal Riset Ekonomi, Manajemen, Bisnis dan Akuntansi, 3(1), 212-219. https://doi.org/10.35794/emba.v3i1.6681

Hanaysha, J. R. (2018). An examination of the factors affecting consumer’s purchase decision in the Malaysian retail market. PSU Research Review, 2(1), 7-23. https://doi.org/10.1108/prr-08-2017-0034

Hapsoro, B. B., & Hafidh, W. A. (2018). The influence of product quality, brand image on purchasing decisions through brand trust as mediating variable. Management Analysis Journal, 7(4), 528-539.

Hasby, R., Irawanto, D. W., & Hussein, A. S. (2018). The effect of service quality and brand image on loyalty with perception of value as a mediation variable. Jurnal Aplikasi Manajemen, 16(4), 705-713. https://doi.org/10.21776/ub.jam.2018.016.04.17

Ismail, A. R., & Spinelli, G. (2012). Effects of brand love, personality and image on word of mouth: The case of fashion brands among young consumers. Journal of Fashion Marketing and Management, 16(4), 386-398. https://doi.org/10.1108/13612021211265791

Jin, N., Merkebu, J., & Line, N. D. (2019). The examination of the relationship between experiential value and price fairness in consumers’ dining experience. Journal of Foodservice Business Research, 22(2), 150-166. https://doi.org/10.1080/15378020.2019.1592652

Khoirudin, A. (2016). Toyota Agya disebut mobil paling banyak keluhan. Retrieved April 3rd, 2020 from https://www.otosia.com/berita/toyota-agya-disebutmobil-paling-banyak-keluhan.html

Konuk, F. A. (2019). The influence of perceived food quality, price fairness, perceived value and satisfaction on customers’ revisit and word-ofmouth intentions towards organic food restaurants. Journal of Retailing and Consumer Services, 50(September), 103-110. https://doi.org/10.1016/j.jretconser.2019.05.005

Kotler, P., & Armstrong, G. (2018). Principles of marketing. Hoboken: Pearson Higher Education. Kumar, V., & Reinartz, W. (2016). Creating enduring customer value. Journal of Marketing, 80(6), 36-68. https://doi.org/10.1509/jm.15.0414

Maskur, F. (2019). Januari-April 2019: Pangsa naik jadi 32%, Toyota makin pimpin pasar. Retrieved April 10th, 2020 from https://otomotif.bisnis.com/read/20190511/275/921310/januari-april-2019-pangsa-naik- jadi- 32-toyota-makin-pimpin-pasar

Mbango, P. (2019). The role of perceived value in promoting customer satisfaction: Antecedents and consequences. Cogent Social Sciences, 5(1), 1-16. https://doi.org/10.1080/23311886.2019.1684229

Nguyen, A., & Meng, J. G. (2016). How source of funds affects buyer’s judgments of price fairness and subsequent response. Journal of Product & Brand Management, 25(7), 710-720. https://doi.org/10.1108/JPBM-02-2016-1104

Opata, C. N., Xiao, W., Nusenu, A. A., Tetteh, S., & Boadi, E. A. (2019). The impact of value co-creation on satisfaction and loyalty: The moderating effect of price fairness (Empirical study of automobile customers in Ghana). Total Quality Management & Business Excellence, 1-15. https://doi.org/10.1080/14783363.2019.1684189

PT Toyota Astra Motor. (2019). Penjualan total Toyota Agya di Indonesia. Jakarta.

Razak, I., Nirwanto, N., & Triatmanto, B. (2016). The impact of product quality and price on customer satisfaction with the mediator of customer value. IISTE: Journal of Marketing and Consumer Research, 30, 59-68.

Rizan, M., Nauli, M. O., & Mukhtar, S. (2017). The influence of brand image, price, product quality and perceive risk on purchase decision transformer product PT. Schneider Indonesia. JRMSI - Jurnal Riset Manajemen Sains Indonesia, 8(1), 101-119. https://doi.org/10.21009/jrmsi.008.1.06

Salem, M. Z. (2018). Effects of perfume packaging on Basque female consumers purchase decision in Spain. Management Decision, 56(8), 1748-1768. https://doi.org/10.1108/MD-04-2017-0363

Saputra, A. W., & Dinalestari, P. (2017). The influence of brand image and product quality concerning automobile buying decision of Isuzu Panther at PT. Astra Isuzu Semarang. Jurnal Administrasi Bisnis, 6(2), 102-109. https://doi.org/10.14710/jab.v6i2.16611

Shaw, S. (2020). The influence of thinking styles on perceived price fairness: An experimental study. In Marketing and Smart Technologies: Proceedings of ICMarkTech 2019 (pp. 219-228). Springer.

Song, H., Cadeaux, J., & Yu, K. (2016). The effects of service supply on perceived value proposition under different levels of customer involvement. Industrial Marketing Management, 54(April), 116-128. https://doi.org/10.1016/j.indmarman.2015.12.003

Suhaily, L., & Darmoyo, S. (2017). Effect of product quality, perceived price and brand image on purchase decision mediated by customer trust (Study on Japanese brand electronic product). Jurnal Manajemen, 21(2), 179-194. http://dx.doi.org/10.24912/jm.v21i2.230

Top Brand Award. (2019). Top Brand Award. Retrieved April 14th, 2020 from https://www.topbrand-award.com/en/2019/04/mobil-city-car/

Tu, J. B. (2015). The empirical research about relations between brand image, brand experience and customer value. In A. Leung (Ed.), Multimedia, communication and computing application. CRC Press.

Wibowo, S. F., Sari, E. P., & Saidani, B. (2017). The effect of trust and brand image on purchase decision (Toyota car survey in Jakarta region). JRMSI-Jurnal Riset Manajemen Sains Indonesia, 8(2), 318-338. https://doi.org/10.21009/jrmsi.008.2.08

Wilson, A., Zeithaml, V. A., Bitner, M. J., & Gremler, D. D. (2016). Services marketing: Integrating customer focus across the firm. McGraw-Hill Education.

Xu, L. U., Blankson, C., & Prybutok, V. (2017). Relative contributions of product quality and service quality in the automobile industry. Quality Management Journal, 24(1), 21-36. https://doi.org/10.1080/10686967.2017.11918498

Yrjölä, M., Rintamäki, T., Saarijärvi, H., Joensuu, J., & Kulkarni, G. (2019). A customer value perspective to service experiences in restaurants. Journal of Retailing and Consumer Services, 51(November), 91-101. https://doi.org/10.1016/j.jretconser.2019.05.030

Yu, M., Liu, F., Lee, J., & Soutar, G. (2018). The influence of negative publicity on brand equity: Attribution, image, attitude and purchase intention. Journal of Product & Brand Management, 27(4), 440-451. https://doi.org/10.1108/JPBM-01-2017-1396

Zhang, Y. (2015). The impact of brand image on consumer behavior: A literature review. Open Journal of Business and Management, 3(1), 58-62. https://doi.org/10.4236/ojbm.2015.31006

Downloads

Published

2020-11-12
Abstract 4607  .
PDF downloaded 5310  .