Accounting and Business Journal The influence of promotion on consumer purchasing decisions to increase the income of paint shops in Medan Lambok Manurung1.
Etty Harya Ningsi2 Universitas Battuta E-mail: manurunglambok66@gmail.
Abstract This research aims to assess the extent of the influence of Pro Ningsiotion on Consumer Purchase Decisions.
The research design employed is quantitative explanatory research.
The data processed were obtained from the distribution of questionnaires, and the data analysis technique used in this study is multiple linear regression.
To explain the research description related to hypotheses, various analyses such as Validity Test.
Reliability Test, and t-Test (Partia.
were Based on the results of the data analysis for the significance of the t-Test, it is indicated that the Promotion (X.
have a positive and significant influence on Consumer Purchase Decisions.
Keywords : Promotion.
Consumer.
Purchase Decision JEL Clasification : A10
INTRODUCTION
The paint industry is one of the sectors that plays an important role in the construction and housing industry in Medan, as well as throughout Indonesia.
In building or renovating houses, the choice of paint depends not only on functional aspects such as protection and durability but also on aesthetic elements and consumer preferences.
Amidst the ever-evolving business dynamics in Indonesia, including in Medan, paint industry players need to understand the factors that influence consumer purchasing decisions.
Economic crises, changes in consumer trends, and increasing competition are some of the factors that can affect consumer behavior in choosing paint.
In recent years.
Medan has experienced significant economic development, including growth in the housing and construction sectors.
This has resulted in increased demand for paint products.
However, in facing the growing competition, industry players need to understand how promotions and pricing can influence consumer purchasing decisions in Medan.
It is important to understand whether promotional strategies such as advertisements, sales promotions, and special promotions have been effective in influencing consumer perceptions of their products.
Additionally, pricing is also a crucial factor in consumer purchasing decisions.
Are the prices offered aligned with the value provided by their products? Is there potential to optimize pricing strategies to enhance the attractiveness of their products in the Medan market? Therefore, this research aims to explore and analyze the influence of promotions and pricing on consumer purchasing decisions for paint in Medan.
The results of this research are expected to provide valuable insights for paint industry players in optimizing their marketing strategies.
Moreover, this research will also offer a deeper understanding of consumer preferences and the factors that influence purchasing decisions in the context of the paint industry in the Medan area.
Accounting and Business Journal Thus, this research has the potential to make a significant contribution to the development of more effective marketing strategies for paint industry players in Medan and support the sustainable growth of the paint industry in Medan.
LITERATURE REVIEW
PROMOTION
Definition of Promotion Promotion comes from the word "promote," which in English means to develop or enhance.
Promotion is a component of the marketing mix.
The function of promotion in the marketing mix is to achieve various communication goals with potential consumers.
According to Kotler and Keller in Simamora 2018, promotion is any form of communication used to inform, persuade, and remind the target market about the products produced by an organization, individual, or Promotion is a form of communication typically carried out by companies to introduce, convince, and persuade consumers to purchase the products offered.
According to Kotler, promotion is a special blend of personal selling, sales promotion, and public relations used by a company to achieve its advertising and marketing goals (Maulana, 2.
Promotion includes all activities undertaken by a company to communicate and promote its products to the target market (Warpindyastuti, 2.
According to H.
Buchari Alma .
, promotion is a type of communication that provides convincing explanations to potential consumers about goods and services.
According to Lupiyoadi .
, promotion is one of the variables in the marketing mix that is very important for companies in marketing service products.
Based on definitions from several experts, it can be concluded that promotion is an activity to communicate the advantages of a product or service owned by a company to attract attention, create purchase decisions, and provide satisfaction, encouraging repeat purchases by consumers.
Objectives of Promotion The objectives of sales promotion are highly beneficial for companies.
Through sales promotions, companies can attract new customers, encourage customers to buy more, and influence customers to try new products.
According to Herman Malau .
, the objectives of promotion include:
Informing, which can involve:
Informing the market about the existence of a new product Introducing new ways of using a product Communicating price changes to the market Informing about services provided by the company Correcting false impressions Reducing buyer fears or concerns Building the company's image Persuading target customers Forming brand preferences Shifting preferences to a specific brand Changing customers' perceptions of product attributes Encouraging buyers to shop immediately Encouraging buyers to accept sales visits Accounting and Business Journal Reminding, which can involve:
Reminding buyers/consumers of an imminent need for the product Reminding buyers where to buy the company's products Keeping the product in the buyers' minds even without advertising campaigns Ensuring the company's product remains the first remembered.
Promotion Mix The promotion mix is various methods or efforts in promoting a product to achieve optimal and satisfying results.
According to Kotler & Amstrong, the promotion mix (Marketing Mi.
is a set of controllable marketing tools - product, price, place, and promotion - that a company blends to produce the response it wants in the target market (Rohaeni, 2.
According to Priyanto.
Martina.
Hamzah.
Somantri, and Syarifuddin .
, the Promotion Mix is a strategy that combines various media and promotion methods as marketing activities.
According to Swastha and Irawan .
in Madjukie .
, the promotion mix has four All forms of non-personal presentation and promotion of ideas, goods, or services paid for by an identified sponsor.
The goals of advertising include:
Informative advertising Persuasive advertising Reminder advertising Reinforcement advertising Media options for advertising include newspapers, magazines, radio, billboards, direct mail.
Ads typically display the sponsoring organization and aim to influence consumers' affective and cognitive responses .
valuation, feelings, knowledge, meaning, beliefs, attitudes, and images related to the product and bran.
, encouraging them to buy the product.
According to Sariwaty.
Rahmawati.
Oktaviani, and Amran .
, the goal of advertising is to direct consumer behavior towards offers or persuade someone to take an action.
Advertising media include print media like newspapers, pamphlets, brochures, leaflets, banners, billboards, and electronic media like television, radio, and the internet.
Sales Promotion Sales promotion is a form of promotion aimed at directly increasing sales through activities like discounts and giveaways, both immediate and through draws.
Public Relations Public relations involve planning to influence public perceptions through the implementation of social responsibility based on reciprocal communication to achieve mutual benefits.
Promotion Indicators According to Kotler and Armstrong in Tambunan & MM .
, promotion indicators Accounting and Business Journal Advertising: Promotional forms displayed in broadcasts, images, or words in brochures, banners, newspapers, magazines, etc.
Personal Selling: Promotional forms conducted through direct personal selling activities with consumers.
Sales Promotion: Promotional forms aimed at directly increasing sales through discount activities and giveaways, either immediate or through draws.
Public Relations: Planning to influence public perceptions through the implementation of social responsibility based on reciprocal communication for mutual benefits.
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PURCHASE DECISION Understanding Purchase Decisions A purchase decision is the process by which an individual evaluates various options and decides on a product from a range of choices.
According to Kotler and Armstrong .
8: .
, consumers make many purchasing decisions every day, and these decisions are the focal point of marketers' efforts.
The consumer's decision to purchase a product involves six decisions .
roduct choice, brand choice, dealer choice, purchase timing, purchase amount, payment metho.
According to Kotler and Keller .
8: .
Product Choice: Consumers can decide to purchase a product or use their money for other Brand Choice: Consumers must decide which brand they want to buy.
Dealer Choice: Consumers must choose which dealer they will visit.
Purchase Amount: Consumers can decide how much to buy when purchasing a product.
The purchase may involve more than one type of product.
Purchase Timing: Consumers decide when to buy the product, which can vary .
, daily, weekly, bi-weekly, monthl.
Payment Method: Consumers decide on the payment method when deciding to use a The process of making a purchase decision is a part of consumer behavior.
Smart companies continually strive to pay attention to and understand their consumers' purchasing decisions.
Companies must understand how consumers make purchase decisions, which involves delving into the purchase decision process that consumers go through.
According to Kotler and Keller in Anita Rachmawati and AnyAgus Kana .
0: .
, "The purchase decision process is a process where consumers go through five stages: problem recognition, information search, alternative evaluation, purchase decision, and post-purchase behavior, which begins long before the actual purchase and has a lasting impact afterward.
According to Buchari Alma in Sri Handayani and Krismiyati .
0: 19-.
, the decisionmaking process can be categorized into three types:
Extended Decision Making: This involves many considerations due to numerous alternatives, such as brand, quality, price, model, and utility.
This category usually appears when purchasing expensive and infrequently bought items, like cars and household electronics.
Limited Decision Making: Here, consumers recognize the problem and evaluate only a few product, brand, and price alternatives.
Accounting and Business Journal Habitual Decision Making: This is a very simple process where consumers recognize the problem and have already decided on the brand, where to buy, and can make quick Based on the definitions by experts, it can be concluded that the purchase decision process is the process by which consumers make decisions about a product through specific processes.
Purchase Decision Indicators Consumers' decision to purchase a product involves six decisions .
roduct choice, brand choice, dealer choice, purchase timing, purchase amount, payment metho.
According to Kotler and Keller .
8: .
Product Choice: Consumers can decide to purchase a product or use their money for other Brand Choice: Consumers must decide which brand they want to buy.
Dealer Choice: Consumers must choose which dealer they will visit.
Purchase Amount: Consumers can decide how much to buy when purchasing a product.
The purchase may involve more than one type of product.
Purchase Timing: Consumers decide when to buy the product, which can vary .
, daily, weekly, bi-weekly, monthl.
Payment Method: Consumers decide on the payment method when deciding to use a HYPOTHESES Promotion has a significant effect on the paint purchase decision process in Medan.
There is an influence of promotion on the paint purchase decision process in Medan, both simultaneously and partially.
RESEARCH METHOD
This research adopts a quantitative approach to collect data.
The data is gathered through survey methods, which involve the researcher or data collector presenting statements or questions to respondents, either verbally or in writing.
To determine the sample size from the population, the researcher used the formula proposed by Slovin in Calvin .
with a 90% confidence level and a margin of error of 10%, resulting in a minimum sample size of 74 people.
Several tests and analysis techniques performed include:
Data Quality Tests: validity test, reliability test Classical Assumption Tests: normality test, multicollinearity test, heteroscedasticity test Coefficient of Determination Correlation F-test t-test Dominant Influence Test Accounting and Business Journal The data collection techniques utilized several methods: questionnaires, interviews, and OPERATIONAL DEFINITION:
This research examines three variables: Promotion (X.
, and Purchase Decision Process (Y).
Variables can be measured with indicators to be identified in more detail according to theory and field studies.
The operational variables used in this study are as follows:
Table 1 Operational Definitions of Research Variables Variable Operational Definitions Indicator Measurement Promotion (X.
Promotion is any form of Periklanan communication used to inform.
Penjualan Personal persuade, and remind the target Promosi Penjualan market about the products Public Relation produced by an organization, (Kotler Armstong In individual, or household.
(Kotler and Keller in Simamora 2.
(Tambunan & MM, 2.
) Likert Scale Purchase Decision (Y) A purchase decision is the process in which an individual evaluates various options and decides on a product from among many choices.
(Kotler and Amstrong .
8: .
) Likert Scale Product Choice Brand Choice Dealer Choice Purchase Amount Purchasing Timing Payment Method (Kotler and .
8: .
) Keller
RESULTS AND ANALYSIS
Respondent Characteristics Based on Gender The Characteristics of Respondents Based on Gender show that male respondents are the most numerous in this study, totaling 53 people or 71.
6%, while female respondents number 21 or 28.
4%, making them the least represented group.
Respondent Characteristics Based on Age The Characteristics of Respondents Based on Age indicate that respondents aged 26-35 years old are the most numerous in this study, totaling 41 individuals or 55.
Respondents aged Ou36 years old amount to 27 individuals or 36.
5%, and the least represented group are respondents aged O25 years old, totaling 6 individuals or 8.
The Characteristics of Respondents Based on Occupation The Characteristics of Respondents Based on Occupation indicate that respondents who work as Civil Servants are the most numerous in this study, totaling 21 individuals or 28.
Accounting and Business Journal Respondents who are students are the least represented in this study, totaling 2 individuals The Characteristics of Respondents Based on Income The Characteristics of Respondents Based on Income indicate that respondents with an income of Rp 6,000,000 are the most numerous in this study, totaling 27 individuals or Respondents with an income of ORp 2,000,000 amount to 4 individuals or 4.
The Characteristics Respondents Based Payment Method The Characteristics of Respondents Based on Payment Method indicate that respondents using credit payment are the most numerous in this study, totaling 51 individuals or 68.
while the least represented group is cash payment, with 23 individuals or 31.
DESCRIPTION OF PROMOTION AND PRICE VARIABLES AND CALCULATION OF
INDEPENDENT VARIABLE SCORES (X)
To assess respondents' responses to the indicators and calculate scores for the independent variables, namely promotion and price, the following can be observed:
Promotion Variable (X.
The indicators in this category consist of five elements: advertising, personal selling, publicity, sales promotion, and direct marketing.
These indicators are presented in five statements as follows:
Table 4 Respondents' Responses to the Promotion Variable Responses Questiions Very Agree
Less Agree
Agree
Very not Agree
Not Agree
% F
Mean X1.
8,1 -
X1.
9,5 -
X1.
X1.
8,1 -
The respondents perception towards the promotion category has the highest average seen from the average of question X1.
ersonal sellin.
which is 4.
while the lowest average is X1.
irect marketin.
with an average of 3.
Accounting and Business Journal
DESCRIPTION OF CONSUMER PURCHASE DECISION VARIABLES AND
CALCULATION OF DEPENDENT VARIABLE (Y)
Indicators of this category consist of five, namely problem recognition .
, information search, alternative evaluation .
roduct selectio.
, purchase decision, and post-purchase behavior .
atisfaction or dissatisfactio.
These indicators are presented in five statements which can be seen in the following table:
Table 5 Respondents' Responses to Consumer Purchase Decision Variables Very not Very Agree Agree Less Agree Not Agree Agree Mean Responses Questiions Yno.
- 4.
Yno.
4,1 -
Yno.
Yno.
Yno.
It can be concluded that respondents' responses to the category of product purchase decision have the highest average seen from the average of question Yno.
roblem recognition .
) which is 4.
1081, while the lowest average is Yno.
nformation searc.
with an average of 3.
VALIDITY TESTING
Validation testing is used to examine the accuracy of the measuring instrument and can reveal the concept of phenomena/events being measured.
Validation testing is used to measure whether a questionnaire is valid or not.
A questionnaire is considered valid if the questions/statements on the questionnaire are able to express something that will be measured by the questionnaire.
Validation testing can utilize correlation coefficients, where a significance value less than 5% .
evel of significanc.
indicates that the statements are valid as indicators.
The results of the testing are as follows:
Accounting and Business Journal
Variabel
Table 6 Results of Validity Testing Indicator r table r Count
Sig
0,1966
0,000
Promotion (X.
0,886 X1.
0,1966
0,908
0,1966
X1.
X1.
X1.
Purchase Decision (Y) 0,1966 0,1966 0,1966 0,860 0,765 0,899 0,423 Yno.
Yno.
0,1966
0,821
Yno.
0,1966
0,782
Yno.
0,1966
0,846
Yno.
0,1966
0,801
0,000
0,000
0,000
0,000
0,000
0,000
0,000
0,000
0,000
Desc.
0,05
Valid
0,05
Valid
0,05
Valid
0,05
Valid
0,05
Valid
0,05
Valid
0,05
Valid
0,05
Valid
0,05
Valid
0,05
Valid Based on table above, it shows that all statement items used to measure the variables in this study have Sig < 0.
05 and the calculated r value > r table, indicating that all indicators are valid for use as instruments in the study or the questions posed in the study can be used to measure the variables under investigation.
RELIABILITY TESTING
Reliability testing is a tool to measure a questionnaire which is an indicator of variables or A questionnaire is considered reliable if a person's responses to statements are consistent or stable over time.
To determine the reliability of a statement, the SPSS 22 computer program is used to obtain the Cronbach Alpha value for each research variable.
The test results can be considered reliable if Cronbach Alpha is 0.
60 (Imam Ghozali, 2007:.
Reliability testing in this study is conducted using the alpha formula.
The results of the reliability testing for each variable are as follows:
Accounting and Business Journal Table 7 Results of Reliability Testing Variable The Cronbach's Alpha Value Promotion (X.
0,914 Purchase Decision (Y) Desc.
Realible 0,793 Realible Based on the table above, it is concluded that all the measuring items of variables and the questionnaire are reliable, indicating that the questionnaire used in this study is a reliable one.
CLASSICAL ASSUMPTIONS TEST
To determine whether the model meets the assumption of BLUE (Best Linear Unbiased Estimato.
or not, several tests need to be conducted, namely multicollinearity test, heteroscedasticity test, and normality test.
uji normalitas Normality Test Figure 1 Normality Test Results Based on the curve analysis in Figure above, it can be observed that the data are scattered around the diagram .
ines distributed alon.
indicating that the processed data follow a normal distribution, thus fulfilling the normality test.
Multicollinearity Test Tabel 8 Multicollinearity Test Independent Variables Tolerance VIF Promosi (X.
0,951 1,052 Desc.
Absence of multicollinearity Based on table above it can be seen that all VIF values are < 10 and tolerance values are > 0.
This indicates that the presence of Accounting and Business Journal multicollinearity in the equations conducted is not proven, thus it can be concluded that the multicollinearity test is fulfilled.
Heteroscedasticity Test Based on the figure above, it can be observed that there is no heteroscedasticity because there is no clear pattern and the points are scattered both above and below the number 0 on the y-axis.
Thus, it can be said that the heteroscedasticity test is fulfilled.
MULTIPLE LINEAR REGRESSION
The multiple linear regression test aims to analyze the influence of promotion and price on consumer purchasing decisions at PT.
Kumala Celebes Motor MAZDA Makassar.
Multiple linear regression analysis is conducted using the SPSS (Statistical Package for Social Scienc.
22 for Windows application, while the confidence level used in multiple linear regression calculations is 95% or with a significance level of 0.
05 ( = 0.
Tabel 9 Multiple Linear Regression Test Results Standardized Coefficien Unstandardized Model Coefficients (Constan.
Std.
Error Promosi (X.
Sig.
Beta
R = 0,910
R Square = 0,828 F = 170.
405 Signifikansi = 0,000 Based on table above (Multiple Linear Regression Calculation Result.
above, the multiple linear regression equation can be determined as follows: Y = a b1X1 b2X2 e Positif Signi Accounting and Business Journal The regression equation above can be explained as follows:
Constant value .
= 3.
This means that if all independent variables have a value of zero .
, then the value of the dependent variable is 3.
In other words, the product purchase decision variable (Y) will remain constant at 3.
642 if not influenced by promotion (XCA) and price (XCC).
Promotion (XCA) to product purchase decision (Y) / bCA = 0.
621 The Promotion variable (XCA) has a positive effect on the product purchase decision (Y) by 0.
This means that if the Promotion variable increases by one unit, the product purchase decision will increase by 0.
Conversely, if the Promotion variable decreases, the purchase decision will decrease as well, assuming that the other independent variable (XCC) is 0.
PARTIAL T TEST
The t-test is used to examine the significance level of variable X on Y partially.
With a sample size of 100 people, the test utilizes a t-test with degrees of freedom .
= n-2 or df = 98, and a significance level () = 5%, yielding a t-table value of 1.
Data processing is conducted using SPSS (Statistical Package for Social Scienc.
The t-test results for each variable X are as follows:
Promotion (XCA) on product purchase decision (Y) In the SPSS calculation, it is observed that the t-value for the promotion variable .
> t-table .
and the significance value is < 0.
which is 0.
Therefore, the alternative hypothesis (HCA) stating that the promotion variable has a positive and significant partial effect on purchase decisions is accepted, while the null hypothesis (HO.
stating that the promotion variable does not have a positive and significant partial effect on purchase decisions is rejected.
Thus, it can be concluded that the promotion variable has a positive and significant partial effect on product purchase decisions among consumers.
DISCUSSION