Effect Of Product Quality And Price On IndiHome High Speed Internet Purchasing Decisions In USU Faculty Of Economics And Business Students

Feb 27, 2025 by ADMIN 141 views

Effect of Product Quality and Price on IndiHome High Speed Internet Purchasing Decisions on USU Faculty of Economics and Business Students

In today's digital age, fast and reliable internet access has become a fundamental necessity, especially among students. The University of North Sumatra (USU) Faculty of Economics and Business students are no exception, as they require high-speed internet to complete their academic tasks, conduct research, and stay connected with their peers. This study aims to investigate the impact of product quality and price of high-speed IndiHome internet services on purchasing decisions among USU Faculty of Economics and Business students.

Background and Significance of the Study

The rapid growth of the internet has led to an increase in demand for high-speed internet services. IndiHome, a leading internet service provider in Indonesia, offers a range of high-speed internet plans to cater to the needs of its customers. However, with the increasing competition in the market, IndiHome faces challenges in differentiating its services and attracting new customers. This study aims to fill this gap by exploring the factors that influence purchasing decisions among USU Faculty of Economics and Business students.

Methodology

This study employed an associative method, using primary data collected through questionnaires and secondary data from documentation studies. The population consisted of all students who used IndiHome products, with 93 respondents chosen through purposive sampling techniques. The questionnaire was designed to gather information on the respondents' perceptions of product quality, price, and purchasing decisions.

Results

The results of this study showed that product quality and price of IndiHome high-speed internet services simultaneously had a positive and significant influence on purchasing decisions among USU Faculty of Economics and Business students. In particular, product quality was found to be the most dominant variable in influencing purchasing decisions. This indicates that students consider the quality of the internet services they receive compared to the price paid.

Analysis of the Effect of Product Quality

Product quality is a crucial factor in determining purchasing decisions. In the IndiHome context, the quality of internet services offered includes speed, stability, and customer support. Students tend to choose service providers who not only offer competitive prices but also adequate quality. When the quality of service is high, students will feel more satisfied and more likely to recommend these services to their friends. This creates a continuous positive effect for service providers.

The quality of internet services offered by IndiHome includes:

Speed: The speed of internet services is a critical factor in determining the quality of service. Students require fast and reliable internet access to complete their academic tasks, conduct research, and stay connected with their peers.
Stability: The stability of internet services is also essential in determining the quality of service. Students require a stable internet connection to avoid disruptions and ensure continuous access to online resources.
Customer Support: Customer support is a critical factor in determining the quality of service. Students require prompt and effective support from service providers to resolve any issues or concerns they may have.

Significance of Price in Purchase Decisions

On the other hand, prices also play an important role in influencing purchasing decisions. In this study, it was found that the competitive price of IndiHome could attract the attention of students who have a limited budget. Although product quality is a priority, an affordable price will be a determining factor for students who have to manage their expenses. Therefore, the right pricing strategy is very important to increase the attractiveness of products in competitive markets.

Conclusion

Overall, both product quality and price have a significant influence on the purchasing decisions of IndiHome High Speed Internet among students of the USU Faculty of Economics and Business. The quality of the product dominates more in influencing this decision, but the price should also not be ignored. This study provides valuable insights for internet service providers to better understand the needs and preferences of their target markets, as well as optimize marketing strategies to attract more consumers among students.

Implications for Internet Service Providers

This study has several implications for internet service providers, including:

Improving Product Quality: Internet service providers should focus on improving the quality of their services, including speed, stability, and customer support.
Competitive Pricing: Internet service providers should offer competitive prices to attract the attention of students who have a limited budget.
Optimizing Marketing Strategies: Internet service providers should optimize their marketing strategies to attract more consumers among students, including social media marketing, online advertising, and promotional offers.

By improving product quality and offering competitive prices, service providers can increase market share and customer satisfaction, create long-term relationships, and ultimately drive business growth.
Frequently Asked Questions (FAQs) on the Effect of Product Quality and Price on IndiHome High Speed Internet Purchasing Decisions on USU Faculty of Economics and Business Students

In this article, we will address some of the frequently asked questions related to the effect of product quality and price on IndiHome high speed internet purchasing decisions on USU Faculty of Economics and Business students.

Q: What is the significance of product quality in influencing purchasing decisions?

A: Product quality is a crucial factor in determining purchasing decisions. In the IndiHome context, the quality of internet services offered includes speed, stability, and customer support. Students tend to choose service providers who not only offer competitive prices but also adequate quality.

Q: How does the price of IndiHome high speed internet services influence purchasing decisions?

A: The price of IndiHome high speed internet services also plays an important role in influencing purchasing decisions. In this study, it was found that the competitive price of IndiHome could attract the attention of students who have a limited budget. Although product quality is a priority, an affordable price will be a determining factor for students who have to manage their expenses.

Q: What are the implications of this study for internet service providers?

A: This study has several implications for internet service providers, including:

Improving Product Quality: Internet service providers should focus on improving the quality of their services, including speed, stability, and customer support.
Competitive Pricing: Internet service providers should offer competitive prices to attract the attention of students who have a limited budget.
Optimizing Marketing Strategies: Internet service providers should optimize their marketing strategies to attract more consumers among students, including social media marketing, online advertising, and promotional offers.

Q: How can internet service providers create long-term relationships with their customers?

A: Internet service providers can create long-term relationships with their customers by:

Providing excellent customer service: Internet service providers should provide prompt and effective support to their customers to resolve any issues or concerns they may have.
Offering competitive prices: Internet service providers should offer competitive prices to attract and retain customers.
Improving product quality: Internet service providers should focus on improving the quality of their services to meet the evolving needs of their customers.

Q: What are the limitations of this study?

A: This study has several limitations, including:

Sample size: The sample size of this study was relatively small, which may limit the generalizability of the findings.
Context: The study was conducted in a specific context, which may limit the applicability of the findings to other contexts.
Methodology: The study employed a quantitative methodology, which may limit the depth and richness of the findings.

Q: What are the future research directions?

A: Future research directions include:

Investigating the impact of product quality and price on purchasing decisions in other contexts: Future studies can investigate the impact of product quality and price on purchasing decisions in other contexts, such as business-to-business (B2B) or business-to-consumer (B2C) settings.
Examining the role of other factors in influencing purchasing decisions: Future studies can examine the role of other factors, such as brand reputation, customer loyalty, and social media influence, in influencing purchasing decisions.
Developing a more comprehensive model of purchasing decisions: Future studies can develop a more comprehensive model of purchasing decisions that takes into account multiple factors, including product quality, price, brand reputation, customer loyalty, and social media influence.