International Journal of Research and Review Vol.7; Issue: 9; September 2020 Website: www.ijrrjournal.com Research Paper E-ISSN: 2349-9788; P-ISSN: 2454-2237

The Effect of Price, Sales Promotion and Personal Selling on Purchasing Decisions at the Spare Parts Distributor Company, PT Wstandard Indonesia

Rosinta Romauli Situmeang1, Yosserlyn2, Vio Adelia3, Shella4

1234Universitas Prima Indonesia, Indonesia

Corresponding Author: Yosserlyn

ABSTRACT them with attractive prices, and make it easy for customers who need it. Companies also This study aims to examine and analyze the need to develop effective marketing effect of price, sales promotion and personal (communication) promotions, especially for selling on purchasing decisions at the Spare consumers. The marketing function plays a Parts Distributor Company, PT Wstandard very important role for companies in Indonesia. This research uses descriptive quantitative and explanatory research methods. carrying out all activities related to the flow The number of population in this study is 158 of goods and services since from producers customers and the number of samples calculated to end consumers. By paying attention to using the Slovin formula is 113 customers. The sales promotion activities, it is expected that data analysis technique used multiple linear they can influence purchasing decisions. regression. Based on the results of data analysis, Successful promotions at least it is obtained that the partial price has a provide separate information or messages significant and negative effect on purchasing that can change the mindset of consumers, decisions while sales promotion and personal which in turn will influence consumer selling have a significant and positive effect on behavior in order to consume the promoted purchasing decisions. Simultaneously price, product. Apart from promotion, the basis of sales promotion and personal selling on purchasing decisions at the Spare Parts the level of sales volume is price Distributor Company, PT Wstandard Indonesia. consideration. The reality shows that The magnitude of the effect of the variation in currently the price is one of the main factors purchasing decisions which can be seen from that influence the purchasing decisions the coefficient of determination is 40.7%, the made by consumers. The selling price is rest is influenced by other variables of 59.3%. essentially an offer to consumers. If the consumer accepts the price, the product will Keywords: Price, Sales Promotion, Personal sell, on the other hand, if the consumer Selling, Purchasing Decisions refuses it, it is necessary to review the selling price. There is a possibility that INTRODUCTION consumers have a mismatch after making a Today's business competition is purchase because maybe the price is increasingly dynamic, complex, and considered too expensive or because it is not uncertain, thus spurring company managers in accordance with the previous wishes and to be able to think creatively, innovatively descriptions. Thus, the right pricing strategy in order to always provide differentiation is needed. The pricing strategy is very and advantages for their company compared important to attract consumers' attention. to its competitors. Companies are required PT Wstandard Indonesia is a to not only market good products, offer distributor company for various types of

International Journal of Research and Review (ijrrjournal.com) 182 Vol.7; Issue: 9; September 2020 Rosinta Romauli Situmeang et.al. The effect of price, sales promotion and personal selling on purchasing decisions at the spare parts distributor company, PT Wstandard Indonesia motorcycle spare parts under the Wstandard Apart from price, another factor that brand. From interviews and researchers' is thought to influence purchasing decisions preliminary observations, it was found that is sales promotion. Sales promotions carried the problems in purchasing decisions were out by each company aim to influence stock items were not available for certain customers to increase their purchases. types of motorbikes, product delivery to One of the keys to successful customers was often late, the number of personal selling is choosing an effective competitors from other spare parts brands, salesperson. Conversely, companies will the payment period was not in accordance waste money hiring the wrong people. Sales with customer needs and others. From the force cycles cost the company sales, incur data, the achievement of the targets given costs to find and train replacements, and every month tends to decrease. often add to the burden of the remaining Based on sales data, it can be seen sales force to make up for any that in 2018 the sales target was achieved shortcomings. The weaknesses of personal only twice, namely in September and selling at PT Wstandard Indonesia, namely November while in February it was the the lack of knowledge and understanding of lowest. This is due to the lack of active sales the products being sold, so that customer in that month where the working days are questions about the products offered are not not full (Chinese New Year holidays). In understood by personal selling. fact, the number of motorized vehicles is Based on personal selling data, it can increasing. Therefore, it is important to be seen that the existing personal selling is analyze the factors that affect sales volume, less capable of carrying out its role in in this case seen from the factors of price, establishing relationships with customers. sales promotion and personal selling. So that many customers feel disappointed The factor that is thought to and some customer orders are not handled influence the decline in the decision to buy properly. spare parts is the price. The price is thought According to Abdullah and Tantri to influence the consumer's decision to buy. (2014:174), however, if prices are too high, Pricing must be carried out by the company the level of demand will decrease. If the carefully where it is necessary that the price of a stem rises, the demand for the company needs to observe carefully the product will decrease and buyers will look suitability of the price given to customers for other alternative goods that can be used and competitors. If the company sets a price as a substitute for these goods. that is not in accordance with customer According to Herlambang (2014:56), expectations, of course, consumers will not promotion causes people who were not buy. previously interested in buying a product to Based on the data, it can be seen that the be interested and try the product so that price of Wstandard spare parts is higher consumers make a purchase. According to than the price of competitor products. Kurniawan (2014:57), "The purpose of Ichidai products are almost known to all promotion is that consumers are interested customers (workshops) while Tokaido in the product, because of this interest, products have product prices that are far consumers want to buy the product". below Wstandard products but product According to Herlambang and quality is also below Wstandard. Purchase Marwoto (2014:118) the purpose of of Wstandard spare parts products if made personal selling is to build preferences, in cash, you will get an additional 5% beliefs and actions of buyers to decide to discount, but if the purchase is on credit buy a product or service from the company. with a period of 1 month there is no According to Ardianto (2015:19) face-to- discount. face selling is one of the variables in the marketing mix which is carried out orally to

International Journal of Research and Review (ijrrjournal.com) 183 Vol.7; Issue: 9; September 2020 Rosinta Romauli Situmeang et.al. The effect of price, sales promotion and personal selling on purchasing decisions at the spare parts distributor company, PT Wstandard Indonesia one or more prospective buyers which is is research that aims to examine the carried out with the aim of creating a causality between variables that explain a transaction. certain phenomenon." This study aims to examine and The number of population in this analyze the effect of price, sales promotion study is 158 customers in 2018 for PT and personal selling on purchasing decisions Wstandard Indonesia and the number of at the Spare Parts Distributor Company, PT samples calculated using the slovin formula Wstandard Indonesia. is 113 customers. The data analysis technique used RESEARCH METHODS multiple linear regression by t test, F test, This research uses descriptive and coefficient of determination. According quantitative and explanatory research to Ghozali (2013:98), the t test is used to methods. Arikunto (2010:27) argues that partially see whether there is a significant "quantitative research as the name implies, effect of the independent variables on the many are required to use numbers, starting dependent variable. The F statistical test from data collection, interpretation of the basically shows whether all the independent data, and the appearance of the results". variables included in the model have a According to Sugiyono (2017:8), simultaneous influence on the dependent "quantitative research methods can be variable. The coefficient of determination interpreted as research methods based on the (R2) in essence measures how far the philosophy of positivism, used to research model's ability to explain the variation in the on certain populations or samples, data dependent variable. collection using research instruments, data analysis is quantitative/statistical, with the RESULT AND DISCUSSION aim of testing hypotheses which have been t Test set". The nature of this research is The t-test is used to show how far the explanatory research. According to influence of one independent variable is on Zulganef (2013:11), "explanatory research the dependent variable.

Table 1. t Test Coefficientsa Model Unstandardized Coefficients Standardized Coefficients t Sig. B Std. Error Beta 1 (Constant) 17,859 3,940 4,533 ,000 Price -,903 ,307 -,361 -2,945 ,004 Sales Promotion ,523 ,151 ,368 3,464 ,001 Personal Selling ,792 ,228 ,541 3,473 ,001 a. Dependent Variable: Purchasing Decisions Source: Research Results, 2018 (Processed Data)

Based on the results of data analysis, The partial sales promotion has a significant it is obtained that the partial price has a and positive effect on purchasing decisions. significant and negative effect on The results of this study also agree with purchasing decisions while sales promotion Herlambang (2014:56), with promotion and personal selling have a significant and causing people who were not previously positive effect on purchasing decisions. interested in buying a product to be The partial price has a significant and interested and try the product so that negative effect on purchasing decisions. The consumers make a purchase. results of this study also agree with The partial personal selling has a significant Abdullah and Tantri (2014:174), however, if and positive effect on purchasing decisions. prices are too high, the level of demand will The results of this study also agree with decrease. Herlambang and Marwoto (2014:118) that the purpose of personal selling is to build

International Journal of Research and Review (ijrrjournal.com) 184 Vol.7; Issue: 9; September 2020 Rosinta Romauli Situmeang et.al. The effect of price, sales promotion and personal selling on purchasing decisions at the spare parts distributor company, PT Wstandard Indonesia preferences, beliefs and actions of buyers to The F statistical test basically shows decide to buy a product or service from the whether all the independent variables company. included in the model have a simultaneous influence on the dependent variable. F Test

Table 2. F Test ANOVAa Model Sum of Squares df Mean Square F Sig. 1 Regression 2673,874 3 891,291 26,601 ,000b Residual 3652,144 109 33,506 Total 6326,018 112 a. Dependent Variable: Purchasing Decisions b. Predictors: (Constant), Price, Sales Promotion, Personal Selling Source: Research Results, 2018 (Processed Data)

Simultaneously price, sales promotion and personal selling on purchasing decisions at the Spare Parts Distributor Company, PT Wstandard Indonesia.

Coefficient of Determination (R2) The coefficient of determination in essence measures how far the model's ability to explain the variation in the dependent variable.

Table 3. Coefficient of Determination (R2) Model Summaryb Model R R Square Adjusted R Square Std. Error of the Estimate 1 ,650a ,423 ,407 5,788 a. Predictors: (Constant), Price, Sales Promotion, Personal Selling b. Dependent Variable: Purchasing Decisions Source: Research Results, 2018 (Processed Data)

The results of the determination coefficient determination is 40.7%, the rest is test obtained an Adjusted R square value of influenced by other variables of 59.3%. 0.407, this means that 40.7% of the Suggestions that are useful for variation in the dependent variable of further research are, it is suggested to add purchasing decisions can be explained by other variables outside of the variables the independent variable price, sales studied by the researcher. Because the promotion, personal selling, while the coefficient test results show that 59.3% of remaining 59.3% (100% - 40.7 %) the variation in purchasing decision explained by other variables that were not variables is influenced by other variables used in this study. such as product quality, brand and others. It is recommended to inform customers of the CONCLUSION AND SUGGESTION superiority of the product so that the price The partial price has a significant offered by the company is not considered and negative effect on purchasing decisions too expensive, the sales promotions held so while sales promotion and personal selling far are still too minimal so that the company have a significant and positive effect on needs to hold other promotional activities purchasing decisions. Simultaneously price, such as participating in exhibitions and sales promotion and personal selling on providing sales bonuses to spur customer purchasing decisions at the Spare Parts purchases. It is suggested that the research Distributor Company, PT Wstandard results are expected to add to the literature Indonesia. The magnitude of the effect of in the literature the variation in purchasing decisions which can be seen from the coefficient of

International Journal of Research and Review (ijrrjournal.com) 185 Vol.7; Issue: 9; September 2020 Rosinta Romauli Situmeang et.al. The effect of price, sales promotion and personal selling on purchasing decisions at the spare parts distributor company, PT Wstandard Indonesia

REFERENCES 6. Herlambang, Susatyo & Bambang Heru 1. Abdullah, Thamrin & Francis Tantri. Marwoto. (2014). Pengantar Ilmu Bisnis (2014). Manajemen Pemasaran. Edisi 1. Cara Mudah Memahami Ilmu Bisnis. Jakarta: PT Grafindo Persada. Yogyakarta: Parama Publishing. 2. Ardianto, Jony. (2015). 177 Problem 7. Kurniawan, Arief Rakhman. (2014). Total Solving of Direct Marketing. Jakarta Marketing. Jakarta: PT Buku Kita. Selatan: Buku Kita. 8. Sugiyono. (2017). Metode Penelitian 3. Arikunto, S. (2010). Prosedur Penelitian Kuantitatif Kualitatif Dan R&D. Bandung: Suatu Pendekatan Praktik. Jakarta: Rineka PT Alfabeta. Cipta 9. Zulganef. (2013). Metode Penelitian Sosial 4. Ghozali, Imam. (2013). Aplikasi Analisis dan Bisnis. Yogyakarta: Graha Ilmu. Multivariate dengan Program SPSS. Semarang: Badan Penerbit Universitas How to cite this article: Situmeang RR, Diponegoro. Yosserlyn, Adelia V et.al. The effect of price, 5. Herlambang, Susatyo. (2014). Basic sales promotion and personal selling on Marketing (Dasar-Dasar Pemasaran) Cara purchasing decisions at the spare parts Mudah Memahami Ilmu Pemasaran. distributor company, PT Wstandard Indonesia. Yogyakarta: Gosyen Publishing. International Journal of Research and Review. 2020; 7(9): 182-186.

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International Journal of Research and Review (ijrrjournal.com) 186 Vol.7; Issue: 9; September 2020