https://dinastirpub.org/DIJEFA

Vol. 2, No. 6, January 2022

e-ISSN: 2721-303X, p-ISSN: 2721-3021
Received: 4 January 2021, Revised: 20 January 2022, Publish: 3 February 2022
DOI: https://doi.org/10.38035/dijefa.v2i6
https://creativecommons.org/licenses/by/4.0/

Determination of Purchase Decision: Place, Price and Service
Quality (Literature Review)
Hapzi Ali1*, Ade Octavia2, Yayuk Sriayudha3
1)

Lecturer of the Faculty of Economics and Business (Vice Chancellor for Academic Affairs), Universitas
Bhayangkara Jakarta Raya, Indonesia, email: hapzi@dsn.ubharajaya.ac.id
2)
Lecturer of the Faculty of Economics and Business (Head of LPPM), Universitas Jambi, Indonesia, email:
octaviafebunja@gmail.com
3)
Lecturer of the Faculty of Economics and Business, Universitas Jambi, Indonesia, email:
yayuk.sriayudha@unja.ac.id
*Corresponding Author: Hapzi Ali1

Abstract: Literature Review Article Determination of Purchase Decision: Place, Price and
Service Quality is a scientific article that aims to build a research hypothesis on the influence
of variables that will be used in further research. This article is within the scope of Marketing
Management. The method of writing this Literature Review article is the library research
method, which is sourced from online media such as Google Scholar, Mendeley and other
academic online media. The results of this Literature Review article are that: 1) Place
influences the Purchase Decision; 2) Price affects the Purchase Decision; and 3) Service
Quality has an effect on Purchase Decision. Apart from these 3 exogenous variables that
affect the endogenous variables of Purchasing Decisions, there are still many other factors
including Product Quality, Product Design and Consumer Needs variables.
Keywords: Place, Price, Service Quality, Purchase Decision
INTRODUCTION
In determining the purchase decision, there are still buyers who consider various
factors such as price mismatch with the money they have. In addition, the price of the product
offered is inversely proportional to the quality of the product provided. Problems that are
often encountered are purchasing products offered through the marketplace. Where the price
given is quite high but there are buyers who are hesitant to make a purchase decision because
the reviews given by consumers do not match the price given. Then the place becomes
something that determines consumers in making purchasing decisions, where problems arise
when the place given is uncomfortable or does not meet the indicators of the place itself such
as: Temperature, Lighting, Layout and Parking. Many business people only think about
marketing their products without looking at the space provided, so consumers are not
interested because of the hot air temperature, messy places and narrow parking spaces. Then

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the quality of service is also a problem that arises where there are consumers who really want
to be upheld and given awards such as: Greetings, Smiles, and Greetings. However, most
sellers do not do this because they are tired of the workload they are undergoing. So that
consumers are reluctant to make purchasing decisions due to poor service quality.
LITERATURE REVIEW
Purchase Decision
Purchase decision is a decision on a buyer that can be influenced by financial
conditions, technology, politics, price, location and also the promotions carried out. So that it
forms an attitude in consumers to process all information and make decisions in the form of
responses that appear what products to buy (Buchari, A., 2016). Purchasing decision is a
process where the buyer goes through certain steps to make a purchase of a product
(Sussanto, 2015). Purchase decision is a consumer behavior in making buying decisions
(Mangkunegara, 2016). Purchasing Decision indicators, among others: 1) Basic condition; 2)
Opportunity; 3) A set of activities carried out by the decision maker; 4) A set of benefits and
costs of a combination of basic decisions (Setiajatnika, 2011).
Purchasing decisions have been widely studied by previous researchers, including:
(Thanh Nguyen, P., & Ali, 2019), (Ali, Evi, et al., 2018),(Novansa & Ali, 1926), (Thanh
Nguyen et al., 2019), (Ikhsani & Ali, 2017b).
Place
Place is a place where an organization's business or company operates or a place to
carry out activities to produce goods or services (Tjiptono, 2017). Place is a business location
that can be used for distribution channels of an organization or company because the place is
also directly related to consumers or buyers (Afrina, 2017). Place is a decision made by the
company regarding operations and where its staff will be placed (Tendean et al., 2020). Place
indicators include: 1) Access; 2) Visibility; 3) Traffic; and 4) Environment (Fandy, T., 2015).
The place has been widely studied by previous researchers, among others: (Octavia &
Ali, 2017), (Octavia et al., 2020), (Saputra & Mahaputra, 2022a), (Sudiantini & Saputra,
2022), (Ricardo, 2021), (Zaitul et al., 2019), (Ali et al., 2022), (M & Ali, 2017), (Hasyim &
Ali, 2022).
Price
Price is an element of the marketing mix in generating revenue, other elements
generate costs (Kotler & Keller, 2009). Price is an element of the marketing mix that provides
income or income for organizations or companies (Tjiptono, F., 2008). Price is a burden or
value for consumers, which is obtained by obtaining or using a product, including the
financial costs of the purchase (Assauri, 2012). Price indicators include: 1) Affordable prices;
2) Alignment of price with quality; and 3) Price competitiveness (Kotler & Armstrong,
2012).
Prices have been widely studied by previous researchers, including: (Ridwan, 2020),
(Zaitul et al., 2018), (Assagaf & Ali, 2017), (Mulyani et al., 2020).
Service Quality
Service quality is a form of consumer assessment of the level of service received with
the level of service expected. If the service received or perceived is as expected, then the
service quality is perceived as good and satisfactory (Kotler, 2019). Service Quality is a
measure of how well the level of service provided and able to reach customer expectations
(Fandy, T., 2017). Service Quality indicators according to Kotler in Arni Purwanti and

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Rahma Wahdiniwaty (2017:65) are: empathy, reliability, responsiveness, assurances, and
tangibles.
Service quality has been widely studied by previous researchers, among others:
(Handayani & Syarifudin, 22 C.E.), (M & Ali, 2017), (Suryani & Rosalina, 2019), (Mahira et
al., 2021), (Saputra & Saputra, 2021), (Mukhtar et al., 2017).
Table 1: Relevant Previous Research Results
No

Author (year)

Previous Research Results

1

(Raja
Ainaya
Alfatiha
dan
Agung Budiatmo,
2020)

2

(Handayani
Syarifudin,
C.E.)

&
22

3

(Runtunuwu
al., 2014)

et

4

(Saputra
Mahaputra,
2022c)

&

5

(Firdayanti et al.,
2022)

6

(Hadita
2020)

et

al.,

7

(Purbasari
Permatasari,
2018)

&

The Influence of Price and
Service Quality on Purchase
Decisions through Purchase
Intention as an Intervening
Variable
The Influence of Service
Quality, Price and Relationship
Marketing
on
Consumer
Satisfaction on Gojek The
Transportation Services
The Influence of Product
Quality, Price, and Service
Quality on User Satisfaction of
Manado Cabana Cafe and
Resto
Relationship
of
Purchase
Interest , Price and Purchase
Decisions to IMEI Policy
(Literature Review Study)
Literature Review Purchase
Decisions Through Buying
Interest:
Promotions
and
Endorsements
The Influence of Smartphone
Product Quality on Purchase
Decisions during the Covid19
Pandemic
The Effect of Service Quality
and Customer Satisfaction on
Repeat Purchases

Simmilarities with
this article
Discussing
Prices,
Service Quality and
Purchase Decisions

Difference with this
article
There is a difference
in the variable of
Buying Interest

Discussing
Service
Quality and Price

There is a difference
between Relationship
Marketing
and
Customer Satisfaction

Discussing Price and
Service Quality

There is a research
locus, namely the
Manado Cabana Cafe
and Resto

Discussing Prices and
Purchase Decisions

There are differences
in the variables of
Buying Interest and
IMEI Policy
There are differences
in Buying Interest,
Promotion
and
Endorsement
There is a difference
in the Product Quality
variable

Discussing
the
Purchase Decision

Discussing
the
Purchase Decision

Discussing
Quality

Service

There is a difference
in the variables of
Customer Satisfaction
and Repurchase

RESEARCH METHODS
In this study, researchers used descriptive qualitative methods and library research.
By reviewing based on previous research that is influential or relevant to this research.
Researchers collected data sourced from the Google Scholar application and used Mendeley
as a bibliography reference. Qualitative research articles must use consistent methodological
assumptions, so as not to raise questions by the reader. One of the reasons for conducting this
research is that it is exploratory (Ali, H., & Limakrisna, 2013).
DISCUSSION
Based on the literature review that is relevant to previous research, the discussion in
this literature review article is as follows:

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1. The Effect of Place on Purchase Decision
If the place is implemented properly and has criteria in accordance with the indicators,
namely: Access, visibility and traffic, then the place will greatly influence purchasing
decisions. Place is a means used by sellers, business actors, organizations or companies in
introducing their products and placing their employees in that place. A place that is easily
visible and easily accessible will be a factor that influences purchasing decisions regardless
of the product and the quality of the products they sell. Besides that, a place that is
comfortable and has a good and attractive design is another factor that makes consumers
make purchasing decisions.
Place affects purchasing decisions, this is in line with research conducted by: (Masruri
et al., 2021), (Doan & Ali, 2021), (Ali & Ekawati, 2012), (Fardinal et al., 2022), (Abdullah et
al., 2021).
2. The Effect of Price on Purchase Decision
If the price can be implemented and applied in accordance with the indicators,
namely: Affordable prices, price alignment with quality and price competitiveness, then
prices will affect purchasing decisions. Price is the main benchmark for some consumers in
buying a product. A product with the best quality will certainly have a more expensive price
than a product that has ordinary quality. However, there are consumers who choose products
with ordinary quality but have low prices, because high prices are considered unreasonable
for these goods.
Price has an effect on purchasing decisions, this is in line with research conducted by:
(Desmiwerita & Saputra, 2019), (Saputra & Saputra, 2021), (Hermawan, 2022), (Sudiantini,
2020a), (Istianingsih, D., Wiwik Utami, S. E., & Msi, 2009).
3. The Effect of Service Quality on Purchase Decision
If the quality of service can be implemented and carried out properly, in accordance
with the indicators, namely: empathy, reliability, responsiveness, assurance, and tangibles,
then the quality of service provided will affect purchasing decisions. One form of quality
service is to serve consumers well according to their needs. Then the form of good service is
by speaking friendly, polite and clear to consumers. In addition, respect or praise whatever
decisions consumers make in buying and choosing products. This attitude becomes an added
value that will have an impact on consumer purchasing decisions, because consumers feel
valued and served well.
Service Quality has an effect on Purchase Decisions, this is in line with research
conducted by: (Hermawan, 2021a), (Pratikno et al., 2022), (Saputra, 2021), (Sudiantini,
2020b), (Sulistyanto et al., 2022), (Eprianto et al., 2021), (Arfian et al., 2020).
Conceptual Framework
Based on the literature review and discussion above, the researchers determined the
framework of thinking as follows:
Place
Price

Purchase Decision

Service Quality
Picture 1. Conceptual Framework

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This article discusses the Influence of Place, Price and Quality of Service on Purchase
Decisions. There are other factors that influence the Purchase Decision, namely:
1) Product Quality: (Lathiifa & Ali, 2013), (Ikhsani & Ali, 2017a), (Sudiantini et al., 2019),
(Maharani & Saputra, 2021), (Kuba, 2022a), (Ferdiansyah & Bukhari, 2021),
(Sastrodiharjo & Sutama, 2016), (Istianingsih, S. H. W., & Wijanto, 2008).
2) Product Design: (Saputra, 2022a), (Pasaribu et al., 2022), (Widodo et al., 2018), (Fawzia,
D., Wangsalegawa, T., & Nursatyo, 2018), (Saputra & Mahaputra, 2022b), (Nofrialdi,
2021), (Rahmayani & Nofrialdi, 2022)
3) Company Image: (Kurniawan, 2020), (Mahaputra & Saputra, 2021a), (Al Hafizi & Ali,
2021), (Suharyono & Ali, 2015), (Hadita, 2020), (Kuba, 2022b), (Widodo, 2019),
(Saputra & Mahaputra, 2022c), (Setyadi et al., 2017), (Mahaputra & Saputra, 2022).
4) Consumer Needs: (Saputra & Ali, 2021), (Hardiansyah et al., 2019), (Ramadhan &
Bukhari, 2020), (Fauzi & Ali, 2021), (Chong & Ali, 2022), (Ali, Narulita, et al., 2018),
(Saputra & Ali, 2022), (Kurniawan, D., Putra, C. I. W., & Sianipar, 2021), (Andrian et al.,
2021).
5) Payment Methods: (Hermawan, 2021b), (Bukhari, 2018), (Widodo, 2020), (Dwinarko,
D., Sulistyanto, A., Widodo, A., & Mujab, 2021), (Hadi et al., 2020).
6) Brand Image: (Saputra, 2022b), (Mahaputra & Saputra, 2021b), (Elmi et al., 2020),
(Hairiyah & Ali, 2017), (Mansur & Ali, 2017), (Bukhari, 2021), (Beatrix, 2022).
CONCLUSION AND RECOMMENDATION
Conclusion
Based on the theory, relevant articles and discussions, hypotheses can be formulated
for further research:
1. Place affects the Purchase Decision.
2. Price affects the Purchase Decision.
3. Service Quality affects the Purchase Decision.
Recommendation
Based on the conclusion above, there are many other factors that influence the
Purchase Decision, in addition to Place, Price and Service Quality that can be used in further
research, namely: Product Quality, Product Design, Company Image, Consumer Needs,
Payment Methods, and Brand Image.
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