Analysis Of The Effect Of Price Suitability, Quality And Distribution Of Product On Purchasing Decisions Of Palm Oil Processing Machines In CV Anugrah Ibu Pertiwi

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Analysis of the Effect of Price Suitability, Quality, and Distribution of Product on Purchasing Decisions of Palm Oil Processing Machines in CV Anugrah Ibu Pertiwi

Introduction

Purchasing decisions are a crucial aspect of business operations, as they directly impact the revenue and profitability of a company. In the context of CV Anugrah Ibu Pertiwi, a company that offers spare parts for oil palm processing machines, understanding the factors that influence purchasing decisions is essential for developing effective marketing strategies. This study aims to explore the effect of price suitability, quality, and distribution of product on purchasing decisions of palm oil processing machines in CV Anugrah Ibu Pertiwi.

The Importance of Purchasing Decisions

Purchasing decisions are actions taken by consumers in choosing to buy or not a product. In the business world, this decision is influenced by various factors, including prices, product quality, and distribution. The purchasing decision process involves several stages, including need recognition, information search, evaluation of alternatives, and purchase decision. Understanding the factors that influence purchasing decisions is crucial for businesses to develop effective marketing strategies and improve their competitiveness in the market.

Research Methodology

The type of research conducted in this study is associative explanatory research with a quantitative approach. The research population includes consumers who routinely purchase spare parts of oil palm processing machines. Sampling was carried out by the census method, which means all members of the population, namely 30 respondents, became part of the analysis. The data used in this study include primary and secondary data that are qualitative and quantitative. The analysis method applied is multiple linear regression, after going through a classic assumption test.

Research Result

The results of the study show that the price suitability and quality of the product have a positive and significant influence on purchasing decisions. This shows that consumers are more likely to buy products if the prices offered according to and the quality of the product meets their expectations. However, product distribution has no significant influence on purchasing decisions. Nevertheless, overall, price suitability, quality, and distribution of the product have a positive influence on the decision to purchase spare parts of oil palm processing machines simultaneously.

The Role of Price Suitability

Price suitability is a critical factor that influences purchasing decisions. Consumers tend to compare spare parts prices with prices from other providers, and they will choose products that provide the best value. A study by [1] found that price is one of the most important factors that influence purchasing decisions, and consumers are willing to pay more for products that meet their needs and expectations. In the context of CV Anugrah Ibu Pertiwi, price suitability is a key factor that influences purchasing decisions, and the company should ensure that its prices are competitive and meet the expectations of its customers.

The Role of Product Quality

Product quality is another critical factor that influences purchasing decisions. Consumers tend to choose products that are of high quality, even if the price is a little more expensive. A study by [2] found that product quality is a major consideration for consumers, and they are willing to pay more for products that meet their needs and expectations. In the context of CV Anugrah Ibu Pertiwi, product quality is a key factor that influences purchasing decisions, and the company should ensure that its products are of high quality and meet the expectations of its customers.

The Role of Product Distribution

Product distribution is an important part of the sales process, but it has no significant influence on purchasing decisions in this context. This may be caused by the construction of consumer confidence in CV Anugrah Ibu Pertiwi as a reliable spare part provider. When consumers already have trust, they are more focused on quality and price, rather than the way the product is distributed. A study by [3] found that consumer trust is a critical factor that influences purchasing decisions, and consumers are more likely to choose products from companies that they trust.

Conclusion

This study provides useful insights for business people and marketers in the spare parts of the oil palm processing machine. By understanding the factors that influence purchasing decisions, companies can optimize their marketing strategies, improve product quality, and set appropriate prices in order to compete in increasingly competitive markets. Overall, greater attention to price suitability and product quality can be the key to improving consumer purchasing decisions in the future.

Recommendations

Based on the findings of this study, several recommendations can be made for CV Anugrah Ibu Pertiwi:

  1. Improve product quality: CV Anugrah Ibu Pertiwi should ensure that its products are of high quality and meet the expectations of its customers.
  2. Set competitive prices: CV Anugrah Ibu Pertiwi should ensure that its prices are competitive and meet the expectations of its customers.
  3. Develop effective marketing strategies: CV Anugrah Ibu Pertiwi should develop effective marketing strategies that take into account the factors that influence purchasing decisions.
  4. Build consumer trust: CV Anugrah Ibu Pertiwi should build consumer trust by ensuring that its products are of high quality and meet the expectations of its customers.

Limitations of the Study

This study has several limitations, including:

  1. Small sample size: The sample size of this study is small, which may limit the generalizability of the findings.
  2. Limited scope: This study only examines the factors that influence purchasing decisions in the context of CV Anugrah Ibu Pertiwi, and may not be generalizable to other contexts.
  3. Methodological limitations: This study uses a quantitative approach, which may limit the depth of the analysis.

Future Research Directions

This study provides several avenues for future research, including:

  1. Examining the role of other factors: Future research could examine the role of other factors that influence purchasing decisions, such as brand reputation and customer service.
  2. Developing a more comprehensive model: Future research could develop a more comprehensive model that takes into account the interactions between the factors that influence purchasing decisions.
  3. Examining the context of other industries: Future research could examine the context of other industries and develop a more generalizable model of the factors that influence purchasing decisions.
    Q&A: Analysis of the Effect of Price Suitability, Quality, and Distribution of Product on Purchasing Decisions of Palm Oil Processing Machines in CV Anugrah Ibu Pertiwi

Q: What is the main objective of this study?

A: The main objective of this study is to explore the effect of price suitability, quality, and distribution of product on purchasing decisions of palm oil processing machines in CV Anugrah Ibu Pertiwi.

Q: What type of research was conducted in this study?

A: The type of research conducted in this study is associative explanatory research with a quantitative approach.

Q: What is the significance of this study?

A: This study provides useful insights for business people and marketers in the spare parts of the oil palm processing machine. By understanding the factors that influence purchasing decisions, companies can optimize their marketing strategies, improve product quality, and set appropriate prices in order to compete in increasingly competitive markets.

Q: What are the key findings of this study?

A: The key findings of this study are:

  • Price suitability and quality of the product have a positive and significant influence on purchasing decisions.
  • Product distribution has no significant influence on purchasing decisions.
  • Overall, price suitability, quality, and distribution of the product have a positive influence on the decision to purchase spare parts of oil palm processing machines simultaneously.

Q: What are the implications of this study for CV Anugrah Ibu Pertiwi?

A: The implications of this study for CV Anugrah Ibu Pertiwi are:

  • Improve product quality to meet the expectations of its customers.
  • Set competitive prices to meet the expectations of its customers.
  • Develop effective marketing strategies that take into account the factors that influence purchasing decisions.
  • Build consumer trust by ensuring that its products are of high quality and meet the expectations of its customers.

Q: What are the limitations of this study?

A: The limitations of this study are:

  • Small sample size, which may limit the generalizability of the findings.
  • Limited scope, which may not be generalizable to other contexts.
  • Methodological limitations, which may limit the depth of the analysis.

Q: What are the future research directions based on this study?

A: The future research directions based on this study are:

  • Examining the role of other factors that influence purchasing decisions, such as brand reputation and customer service.
  • Developing a more comprehensive model that takes into account the interactions between the factors that influence purchasing decisions.
  • Examining the context of other industries and developing a more generalizable model of the factors that influence purchasing decisions.

Q: What are the practical implications of this study for businesses?

A: The practical implications of this study for businesses are:

  • Understanding the factors that influence purchasing decisions is crucial for developing effective marketing strategies.
  • Improving product quality and setting competitive prices are essential for meeting the expectations of customers.
  • Building consumer trust is critical for long-term success.

Q: What are the theoretical implications of this study?

A: The theoretical implications of this study are:

  • The study provides a deeper understanding of the factors that influence purchasing decisions.
  • The study contributes to the development of a more comprehensive model of the factors that influence purchasing decisions.
  • The study provides a framework for future research on the topic.

Q: What are the future research directions for this study?

A: The future research directions for this study are:

  • Conducting a more comprehensive study that takes into account the interactions between the factors that influence purchasing decisions.
  • Examining the context of other industries and developing a more generalizable model of the factors that influence purchasing decisions.
  • Developing a more comprehensive model that takes into account the role of other factors that influence purchasing decisions.