Examining the Structural Relatiosnhips of Product Price, Product Quality and Customer Purchasing Decision

Abstract

This research aims to test the influence of price and product quality on customers’ purchasing decision. To this, 105 respondents were used to fill up the questionnaires, Smart-PLS 3.0 was used to analyze and test the hypothesis. The results showed that product price influenced positively and significantly on customers’ purchasing decision, while product quality did not. This research enriches the empirical study on price, product quality, and the customer purchasing decision. At the practical level, the result revealed that corporates should emphasis developing and delivering products meeting the needs of customers in price sensitive market in order to stimulate customer’s purchasing decision and enhance corporate’s market share.