An Analysis of Factors Influencing Reliance and Purchasing Decision (Case Study on Real Estate Business in Indonesia)

Abstract

The property business in Indonesia has been very encouraging along with economic growth and a large population. This research is to examine the various factors that can be affected on reliance and purchasing decision in real estate or housing business in Indonesia. Theoretical basis of reliance and purchasing decision can mitigate and control by some factors like product quality, legal and brand image. To analyze the relationship or influence of variables uses the Structural Equation Modeling (SEM) technique with LISREL computer program. This study uses primary data which is analyzed qualitatively as the main reference for further research, and collected by distributing questionnaires, then analyzed by quantitative method. This research finds the product quality, legality, and brand image have a significant impact on reliance. Further, product quality, legality, brand image, and reliance have a significant effect on purchasing decision. The research’s usefulness is terribly important for several sides include managers, companies, and policymakers interested in addressing real estate business performance and mitigation strategies. The study highlighted that reliance and purchasing decision is not only related to internal factors namely quality of product, legality, and brand image, that’s why, this study has limitations.