The Effect of Price Perception, Product Quality and Promotion on Purchasing Decisions Mediated by Brand Image

Abstract

When consumers have limited time and social mobility due to demand or policy, frozen foods become an alternative as they have several service advantages: more convenient, more economical, faster, easier and can meet protein and health needs. Frozen foods were originally produced and intended for consumption by consumers engaged in various activities. So far, frozen food industry also has good prospects, based on lifestyle or lifestyle changes in today's society, especially among millennials. This study aims to determine the relationship between the effects of price, product quality and promotional activities on brand image-mediated purchasing decisions for frozen food products at a retail location. RF store. This study used a sample of 150 respondents who were consumers of frozen food products studied using the structural equation model hypothesis test – Partial least squares (SEM-PLS) tool. to answer the research questions. The results show that brand image cannot play a mediating role in the product quality variable in the purchasing decision process, because the ρ-value is 0.125 and the T-statistical value is 1.535. Brand image is not a motivator/mediator to convince consumers to buy a product when it is associated with the quality of the product. At the same time, brand image can appear as a mediator between price perception variables in purchasing decisions, with a value of ρ of 0.026, and can also appear as a mediator between promotion variables in the purchase decision, with a value of ρ of 0.026 and 0.016. So, especially for frozen food products sold at RF store, brand image is considered to have the ability to entice consumers to purchase through price perception and promotion. Price perception and promotion are the most important variables in the consumer's mind but they also determine how the product can benefit and desire the consumer. The product is well trusted by the consumers and the consumer will be satisfied with the purchase or possession of the product.