DETERMINANTS OF DECISION TO PURCHASE MOBILE SAMSUNG SMARTPHONE

Agustin Intan Permatasari1, Nurul Qomariah2 dan Budi Santoso

123Faculty of Economics, University of Muhammadiyah Jember

2Coresponding Author:

ABSTRACT

This study aims to identify and analyze the effect of price (X1), brand (X2), quality (X3), features (X4) and design (X5) on purchase decisions HP Samsung Smartphone (Y). The variables in this study using independent variables and the dependent variable. The independent variable is composed of a variable price, brand, quality, features and design. The research sample of 60 respondents using purposive sampling technique. Data analysis techniques to test the measuring instrument used is the test data validity and reliability testing. To determine the influence of independent variables on the dependent variable used multiple linear regression analysis. Based on the results of multiple linear regression analysis showed that the variable attributes of a product consisting of the price (X1), brand (X2), quality (X3), features (X4) and design (X5) have a positive influence on consumer purchasing decisions is price (0.336 ), brand (0011), quality (0.080), features (0.166) and design (0.304). Hypothesis test results obtained that the product attributes that consists of price, features, and design is partially significant effect on purchasing decisions, while brand and quality of partial no significant effect on consumer purchasing decisions.

Keywords: price, brand, quality, features, design and purchasing decisions.

INTRODUCTION

Marketing is a social process which individuals and groups obtain what they need and want by creating, offering, and freely exchanging products and services of value with others (Kotler, Manajemen Pemasaran Jilid I Edisi 10, 2008). In obtaining and maintaining the company's consumers have no other choice but to improve and maintain quality, set prices accordingly, to maintain the image that it has a good image in the eyes of the consumer if the consumer does not want to be disappointed, reduced, or even switch to another product. If consumers reduced it can affect the sales decline, which means purchasing decisions also declined. But basically the purchasing decision process includes several stages. The decision-making process to purchase a product, consumers typically through the stages that need recognition, information search, evaluation of alternatives, purchase decision and post purchase behavior (Sutisna, 2003).

Competition companies to compete for consumers today are no longer limited to the functional attributes of products such as the usefulness of a product, but has been linked with other attributes that are attached to the product. Product attributes are appropriate to the needs of consumers will attract consumers to take decisions related to the purchase of the product concerned. Some of the attributes of the products are quite used as a reference for determining the purchase decision-making process include price, brand, quality, features, and design (Kotler, Manajemen Pemasaran Jilid I Edisi 10, 2008).

Price gives a big influence in the buying decision process. If the price is low then the demand for the offered product increases and if the price of the product gets higher then the demand for the product is lower. Appropriate pricing will get great attention from consumers, if the price set by the company is appropriate and in accordance with the consumer's purchasing power then the selection of a product will be dropped on the product (Saladin, 2003).

In addition to price, for brand customers can provide value in strengthening information the process of interpretation, cultivate confidence in purchases, and increase the achievement of satisfaction. And brand value for marketers or companies can heighten the success of marketing programs in attracting new customers or embracing old customers. Brand is an attribute that gives non material benefit, that is emotional satisfaction, consists of considering the brand before buying a product, choosing a particular product brand, choosing a famous product (Tjiptono, 2008).

Product quality is also one of consumer consideration before buying a product. The quality of the product is determined by its durability, function and usefulness. With the quality of the product is good and reliable then consumers will always remember the product (Kotler, 2008). The features are the elements of products that are considered important by consumers and used as the basis of purchasing decisions. Product features can influence a consumer's decision to purchase a product, since product features are embedded in a product and are often used by consumers as a basis and consideration for deciding whether or not to buy a good or service offered (Tjiptono, 2008).

Good product design can also attract interest, improve product performance, reduce production costs and provide a strong competitive edge on products within the target market (Kotler & Amstrong, 2008). Product design will also affect consumers in deciding to buy the product in question. The development of fashion or trend is now considered to affect consumer decisions in making purchasing decisions.

Compared to other industries, telecommunications is the industry with the highest growth rate. Increasing competition between mobile phone companies requires each company to compete to promote its products as attractive as possible. Successful promotions can support the product to succeed in the market as well.

The need for flexible communication requires each individual to own a mobile phone. Smartphones become the most popular product. Samsung is a mobile phone company that produces android based smartphone. Android is the operating system developed by Google for mobile devices or better known as smartphones. One of the advantages of android is the availability of applications from various categories: social, entertainment, games, etc. In emerging market countries like in Indonesia, Samsung is also noted as a player who is quite dominant in the segment of cheap android phones.

Table 1.1 Sales of Samsung cellular phones and their competitors in 2012 - 2014

No / Merk / Unit / Merk / Unit / Merk / Unit / Merk / Unit
2012 / Apple / 1.672.995 / Nokia / 428.669 / Blackberry / 58.574 / Samsung / 708.056
2013 / Apple / 1.542.169 / Nokia / 298.074 / Blackberry / 57.662 / Samsung / 720.462
2014 / Apple / 1.542.628 / Nokia / 198.449 / Blackberry / 561.293 / Samsung / 746.004

Source : AISI, 2012 -2014

Based on table 1.1 Viewed from the above sales table, Apple has the highest sales among other brands including Samsung. This is a problem for Samsung, so there needs to be problem solving, so that Samsung customers do not switch to other Mobile or Samrtphone brand. Samsung experienced a successive increase in sales from 2012-2014, In this phenomenon Samsung has increased sales because it issued android-based phones and still have a chance to raise sales.

Figure 1.1 Data on Mobile or Smartphone Usage Based on Operating System

LITERATURE REVIEW

Marketing management is a process that involves analysis, planning, implementation and control, which includes goods and services as well as ideas that depend on exchange for the purpose of generating satisfaction for the parties involved (Kotler & Amstrong, 2008). Marketing mix is a combination of several marketing mix elements to gain market share, greater market share, strong competitive position and positive image to the customer so we can mean that the marketing objective is to increase the number of customers, increase the sales revenue, and provide benefits for the company and its stakeholders (Kotler, 2008)

Product attribute is the development of a product or service involves determining the benefits to be provided (Tjiptono, 2008). Decisions about these attributes will have a major impact on consumer reactions to the product. Given the attributes attached to a product that consumers use to assess and measure the suitability of product characteristics with needs and wants. For companies with knowing what attributes that can influence the purchase decision can be determined strategy to develop and improve the product to be more satisfying consumer (Kotler, 2008).

Price is money paid on a goods or service received, other than that the price is defined as the value that consumers need for a benefit on the consumption, use or ownership of goods or services (Kotler, 2008). Prices that match the expectations of consumers can make a person to decide to buy a product (Satriawan, 2013). Brand is the name, term, sign, symbol or symbol, color, motion or combination of other product attributes that are expected to give the identity and differentiation to the competitor's product. Quality brands can improve purchasing decisions (Ambarini, Qomariah, & Anwar, 2016). Good brands can deliver additional quality assurance. Brands play an important role in marketing. Brands are used for a number of purposes as identity, promotional tools, to foster the image and to control the market (Tjiptono, 2008). Quality is one of the most important product attributes in the eyes of consumers. Consumers will try to find the most high-quality products, because it involves customer satisfaction. Therefore a company should pay attention to the quality of the product to be launched to the consumer. Features play a role in adding the main benefits of a product. Thus the feature also commonly functions to distinguish a product with similar products, depending on the extent to which the features offered can meet consumer expectations and can be a determinant of winning a product in the competition. The design is quite decisive as the product attribute. Products that have full features may not necessarily be attractive if the design is not economical and makes the work slow (Sutisna, 2003).

The process of purchasing decisions by consumers is one approach in the business of studying consumer behavior. This approach focuses on the view that in reaching a purchase decision, a consumer through a certain stage process. This process begins with the awareness of the fulfillment of needs and desires. Furthermore, if it is realized the need and desire, then consumers will seek information about the existence of the desired product. The process of retrieving this information will be done by collecting all information related to the desired product. Based on the information obtained, consumers do a selection of available alternatives. This selection process is called an alternative evaluation stage. For consumers who have high involvement on the products they want, the decision-making process will consider the above. With the purchase of a particular product brand, the evaluation process has not ended because the consumer will conduct post-purchase evaluation. At this stage, the consumer will determine whether the consumer is satisfied with the purchase decision. The process of making the decision in the consumer is a single process. The process is divided into several dimensions, namely: First dimension, differentiate decision making with the habit. Decisions are based on information retrieval and appraisal of brand alternatives, while habits involve little decision-making process. If consumers are satisfied with a particular brand then they will re-purchase the brand.

RESEARCH METHODOLOGY

This research is kind of explanatory research. Explanatory research is a study that intends to explain the position of variables studied and the relationship between one variable with another variable (Sugiyono, 2007). This study is based on primary data taken from the questionnaire to respondents ie consumers who buy Samsung Smartphone mobile phone.

This research uses independent variable and dependent variable. The independent variables consist of price, brand product quality, features and design. The dependent variable is the purchase decision. Price (X1) is money paid on a goods or service received, otherwise the price is defined as the value consumers need for a benefit on the consumption, use or ownership of goods or services. Brand (X2) is the name, term, sign, symbol or symbol, color, motion or combination of other product attributes that are expected to provide the identity and differentiation of the competitor's product. Quality (X3) is one of the most important product attributes in the eyes of consumers. Consumers will try to find the most high-quality products, because it involves the satisfaction of the consume. Features (X4) Able to increase the main benefits of a product. Thus the feature also commonly functions to distinguish a product with similar products, depending on the extent to which the features offered can meet consumer expectations and can be a determinant of winning a product in the competition. Design (X5) Design is quite decisive as a product attribute. Products that have full features may not necessarily be attractive if the design is not economical and makes the work slow. Consumer decision to buy Samsung Smartphone (Y) mobile phone is a consumer action to choose Samsung Smartphone phone as needed and desired.

The population of this study is all consumers who use Samsung Smartphone mobile phone. The sampling method used in this research is purposive sampling, which is carefully selected sampling by taking selective research object and having specific characteristic (Sugiyono, 2007). In this study the provisions of the respondents who have made purchasing decisions and using Samsung Smartphone mobile phone products at least 3 months, because the period is considered still relevant to answer the questionnaire. Another requirement is that the respondent is at least 17 years old because someone who has entered the age of 17 years is considered capable of filling the questionnaire given to him.

Validity test and reliability test were conducted to test the questionnaires distributed to the respondents (Sugiyono, 2007). Multiple linear regression analysis is used to know the effect of free variable (price, product quality brand, feature and design to independent variable (purchasing decision) .The hypothesis testing is done by t test and f test.

RESULTS AND DISCUSSION

Statistics Description Results

Descriptive statistics based on sex shows total male sex respondents totaling 30 people. Respondents of female gender amounted to 30 people. Respondents a aged less than 20 years amounted to 8 people or 13%. Respondents with age between 20-30 years amounted to 42 people or 70%. Respondents with age more than 30 years amounted to 10 people or 17%.

Validity Test and Relibitity Test Results

The result of the validity test shows that the correlation between each indicator to the total construct score of each variable shows a valid result, because r count> r table. So it can be concluded that all statement items declared valid. Reliability test results indicate that all variables have sufficient coefficient Alpha or meet the criteria to be said reliabel that is above 0.70, so for the next items on each concept of the variable is feasible to be used as a measuring tool.