THE IMPACT OF PRICE PROMOTION AND WORD OF MOUTH ON PURCHASE INTENTION ON LAZADA (CASE STUDY BANDUNG'S CONSUMERS IN 2020)

Authors

  • Ihda Salma Sakina Nanjing University of Information Science and Technology

DOI:

https://doi.org/10.35592/jeb.v27i2.1902

Keywords:

Price, Word of Mouth, Purchase Intention, E-Commerce, Online

Abstract

The more technological advances are developed, the more technological innovations there are. One of the new technology is online shopping. People new behaviour is online shopping because they can easily buy goods without going out. The increasing public interest in online shopping has led to e-commerce brands in Indonesia. Lazada, as one of the e-commerce in Indonesia, needs to strengthen its marketing strategy, so people can be interested in making payments on the Lazada platform.

This study aims to analyze whether price promotion and word of mouth can affect the purchase intention of Indonesian people, especially the city of Bandung. The population in this study were the people of Bandung who had shopped or knew about Lazada. Data collection technique with a questionnaire, while the data analysis technique used multiple linear regression analysis, classical assumptions (normality test, multicollinearity test, heteroscedasticity), statistical tests (t-test, f test and coefficient of determination).

From the classical assumption analysis results, the normality test with Kolmogorov Smirnov was obtained significantly more than 0.05, which means that the data distribution is normal. The multicollinearity test received close VIF and Tolerance values one, so it can be concluded that the regression model does not have a problem with multicollinearity. In contrast, the heteroscedasticity test was carried out by the Glejser method declared no trouble found.

Based on the results of multiple linear regression analysis from the t-test, the finding is that, partially, purchase intention significantly affects price promotion and word of mouth. The results of the F-test show that simultaneous price promotion and word of mouth are significant towards purchase intention where f count  > f table.

 

References

<ol><li>Akhlaq, A., Ahmed, E. (2016). Gender differenced among online shopping factors </li><li>Arndt, J., 1967. Role of product-related conversations in the diffusion of a new product. J. Market. Res., 291---295</li><li>Asia Pacific Manag. Rev. customer trust in the e-commerce environment. Journal of Applied Sciences. 13(12), 2316-232</li><li>Assael H. (2002), Consumers Behavior and Marketing Action, Edisi 3, Kent </li><li>Bambauer-Sachse, S., Grewal, D., 2011. Temporal reframing of prices: when is it </li><li>Base One, 2015. A Comprehensive Survey into the Behaviours and Attitudes of the B2B Buyer, Retrieved from https://www.nielsen.com/content/dam/niel sen global/apac/ docs/reports/2015/Nielsen- global- trust-in-advertising-report September- 2015.pdf (13.03.16).beneficial? J. Retailing 87, 156– 165</li><li>Blut, M., 2016. E-service quality: development of a hierarchical model. J. Retail. 92 (4), 500– 517.</li><li>Diallo M F 2012 Effects of store image and store brand price-image on store brand purchase 1234567890" "International Conference on Climate Change IOP PublishingIOP Conf. Series: Earth and Environmental Science 200 (2018) 012019 doi:10.1088/1755- 1315/200/1/012019intention: </li><li>Application to an emerging market Journal of Retailing and Consumer Services 19 360–7.</li><li>Dobele, A., Toleman, D., and Beverland, M. Controlled infection! Spreading the brand message through viral marketing. Business Horizons, 48, 2, 2005, 143– 149.</li><li>Duan, W., Gu, B., and Whinston, A. B. Do online reviews matter? – An empirical investigation of panel data. Decision Support Systems, 45, 4, 2008, 1007– 1016.</li><li>Edward J. Foxb a Kellogg How price promotions work: A review of practice and theory Eric T. Andersona,∗, School of Management, Northwestern University, Evanston, IL, United States bCox School of Business, Southern Methodist University, Dallas, TX, United States ∗Corresponding author: email.</li><li>Graciola, A.P., De Toni, D., de Lima, V.Z., Milan, G.S., 2018. Does price sensitivity and </li><li>Ha, Young & Stoel, Leslie, (2004). Internet apparel shopping behaviors: the influence general Innovativrness. Journal od Retail & Distribution Management. 32(8).</li><li> ntention: effects of trust and security perception. Australian Journal of Basic and Applied.</li><li> International Journal of Electronic Commerce 6(1), 75-91.</li><li>Katz, E., Lazarsfeld, P.F., 1955. Personal Influence: The Part Played by People in the Flow of Mass Communications. Free Press, Glencoe, IL.</li><li>Kim, H.-W., Xu, Y., Gupta, S., 2012. Which is more important in Internet shopping,</li><li>Kiss, C., and Bichler, M. Identification of influencers – measuring influence in customer networks. Decision Support Systems, 46, 1, 2008, 233–253.</li><li>Klenow, Peter J., Malin, Benjamin A., 2010. Microeconomic evidence on price-setting. In: Handbook of Monetary Economics, vol. 3. Elsevier, pp. 231–284.</li><li>Lee, Matthew K. O. & Turban, Efraim (2001) A trust model for customer internet shopping. </li><li>Lien, C.H., Wen, M.J., Huang, L.C., Wu, K.L., 2015. Online hotel bookingMutum, D.,</li><li>Meskaran, Fatemeh, Ismail, Zuraini & Shanmugam, Bharani, (2013). Online purchase </li><li>Mohd Ghazali, E., Nguyen, B., Arnott, D., 2014. Online loyalty and its interaction with switching barriers. J. Retail. Consum. Serv. 21 (6), 942–949. Oliveira, T., Alhinho, M., Rita, P., </li><li>Dhillon, G., 2017. Modelling and testing consumer trust dimensions in e- commerce. Comput. Hum. Behav. 71, 153–164. Pakistan. Organizations and Markets in Emerging Economies, 7(1), 74- 89.</li><li>Ratnasingham, Pauline (1998). The importance of trust in electronic commerce. Internet Research: Electronic Networking Applications and Policy. 8(4), 313- 321 </li><li>Retailing Consum. Serv. 44, 201–213. Sciences. 7(6).</li><li>Sun, Huamei. (2013). Moderating role of online word of mouth on website attributes and </li><li>The effect of specific discount pattern in terms of price promotions on perceived price attractiveness and purchase intention: An experimental research Naci Büyükdag a,* , Ays¸e Nur Soysal b , Olgun Ki_tapci a</li><li> Turney, P. D. Thumbs up or thumbs down? Semantic orientation applied to unsupervised classification of reviews. Annual Meeting of Association for Computational Linguistics, Philadelphia, PA, 2002, 417–424.</li><li>Yu, Z., Wu, Z., Chen, H., Sheng, H., and Ma, J. Mining target marketing groups from users' web of trust on Epinions. In International AAAI Conference on Weblogs and Social Media, Seattle, WA, 2008, 116–121</li></ol>

Downloads

Published

2021-12-11

How to Cite

Sakina, I. S. (2021). THE IMPACT OF PRICE PROMOTION AND WORD OF MOUTH ON PURCHASE INTENTION ON LAZADA (CASE STUDY BANDUNG’S CONSUMERS IN 2020). EKONOMI BISNIS, 27(2), 789–795. https://doi.org/10.35592/jeb.v27i2.1902

Issue

Vol. 27 No. 2 (2021): EKONOMI BISNIS

Section

Articles