Research Paper
Year: 2019 | Month: July | Volume: 6 | Issue: 7 | Pages: 349-360
The Effect of Promotion, Price Perception and Product Quality on Purchasing Weaving Decisions on Consumers of Raki Weaving Assisted by Deli Serdang Cooperative Service
Muhammad Fazrir Arfan1, Prof. Dr. Amrin Fauzi2, Dr. Endang Sulistya Rini2
1Postgraduate Students Master of Management University of North Sumatera, Indonesia
2Postgraduate Lecturer Master of Management University of North Sumatera, Indonesia
Corresponding Author: Muhammad Fazrir Arfan
ABSTRACT
The development of the UMKM industry helped to increase competition among companies, especially competition for weaving manufacturing UMKM. This competition occurred in North Sumatra, UMKM Weaving appeared to tighten competition. The need to implement the right business strategy for UMKM is to be able to grow and compete with their competitors. Raki Weaving as UMKM Assisted by Deli Serdang Cooperative Service must compete with competitors, by offering their best weaving products. In 2017 there was a decline in sales of Raki Weaving. Many factors influenced the sale of Raki Weaving, including the Promotion of Raki Weaving, Consumer Price Perception about Raki Weaving and Quality Products made by Raki Weaving. This study aims to determine: 1) the effect of promotion on purchasing decisions, 2) the effect of price perceptions on purchasing decisions, 3) the influence of product quality on purchasing decisions, 4) the effect of promotion, perceived price and product quality simultaneously on purchasing decisions of Raki Weaving fabric. The population in this study amounted to 177. Determination of sample size using the Slovin's formula, with error tolerance = 5%, so that a sample of 123 respondents was obtained. The method of data collection is done by the method of documentation, interview and giving questionnaires to respondents. The data analysis technique in this study used multiple regression analysis, at a significant level = 0.05. The results showed that: 1) Promotion had a positive and significant effect on the purchase of Raki Weaving fabrics. 2) Positive and significant perceptions of price prices on fabric purchase decisions on Raki Weaving. 3) Product quality has a positive and significant effect on purchasing decisions in Raki Weaving. 4) Promotion, perceived price and product quality simultaneously have a positive and significant effect on the decision to purchase fabrics in Raki Weaving.
Key words: Promotion, Price Perception, Product Quality, Purchasing Decisions, UMKM.
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