The effect of distribution strategy and price on buying decisions minimarkets in Surabaya City, Indonesia

Abstract

The research was conducted to know the impact of changes in distribution strategies and prices on buying decisions made by retail stores or minimarkets due to government policies on social restrictions of the COVID-19. This study uses quantitative research with population data distribution in one of Indonesia’s major cities. It uses a structural model in data analysis with all latent variables linked. They were measuring instruments used using Smart PLS. This study found that with changes in distribution strategies by combining all types of intensive, exclusive, and selective, significant results were obtained at prices and purchasing decisions by customers. The main finding in the study was that the implementation of distribution strategies for government policy adjustments was very effective in reaching customers in all corners of the city so that price adjustments and customer purchase decisions could occur on an ongoing basis.