The Role Of Personal Selling On The Decision To Buy Oriflame Products (Case Study Of Extension Management Students Of The Faculty Of Economics, USU Medan)

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The Role of Personal Selling on the Decision to Buy Oriflame Products (Case Study of Extension Management Students of the Faculty of Economics, USU Medan)

Introduction

In today's competitive market, businesses are constantly seeking innovative ways to increase sales and revenue. One effective strategy is personal selling, which involves direct interaction between sales consultants and prospective buyers. This study aims to investigate the role of personal selling on the decision to buy Oriflame products among students of extension management at the Faculty of Economics, USU Medan. By understanding the impact of personal selling on purchasing decisions, Oriflame can optimize its marketing strategies and increase sales.

Background

Oriflame is a well-known cosmetics company that has been operating in the market for several decades. The company has a strong presence in many countries, including Indonesia, where this study was conducted. Oriflame products are popular among students, who are often attracted to the company's affordable prices and wide range of products. However, the company faces intense competition from other cosmetics brands, making it essential to understand the factors that influence purchasing decisions.

Methodology

This study used a quantitative approach, where data was collected through questionnaires distributed to active students who have ever bought Oriflame products. The purposive sampling method was used to target students who were likely to have purchasing experience with Oriflame. The questionnaires used a Likert scale to measure the level of agreement with statements related to personal selling and purchasing decisions.

Data Analysis

The data was analyzed using descriptive analysis and simple linear regression analysis, including partial test (T test) and coefficient of determination. The results showed that personal selling had a positive and significant influence on the decision to buy Oriflame products. The value of t arithmetic (6,270) is greater than t table (1,660), which indicates a significant effect of personal selling on purchasing decisions. Furthermore, the analysis shows that personal selling contributes 65% to the decision to buy Oriflame products, while other factors that are not examined in this study played a role of 35%.

Deeper Analysis

Why is Personal Selling Effective?

Personal selling in the Oriflame context is so effective because it allows direct interaction between sales consultants and prospective buyers. This allows sales consultants to:

  • Give a detailed explanation: Explain the product in depth, answer questions, and overcome the doubt of prospective buyers.
  • Building Trust: Creating a strong personal relationship, shows credibility, and building trust with prospective buyers.
  • Adjusting the strategy: Analyzing the needs and preferences of prospective buyers and offers the right solution.

Other factors that affect buying decisions include:

  • Price: Student purchasing power, price comparison with competitor products.
  • Product Quality: Student Perception of Oriflame Product Quality.
  • Promotion: Attractive offers and promotional campaigns run by Oriflame.
  • Recommendations: The influence of friends, family, and student communities.

Implications for Oriflame

Based on the findings of this study, Oriflame can take several steps to optimize its marketing strategies and increase personal selling effectiveness:

  • Increasing Sales Consultant Training: Oriflame needs to improve training and development of sales consultants to be more effective in building relationships and building trust with prospective buyers.
  • Utilization of Digital Platforms: Accommodating the needs of students today by utilizing digital platforms to reach prospective buyers more broadly.
  • In-depth market research: Conducting more comprehensive market research to understand the needs and preferences of students, so as to develop a more effective marketing strategy.

Conclusion

This study shows that personal selling plays an important role in the decision to buy Oriflame products among students. Oriflame can use these findings to optimize marketing strategies and increase personal selling effectiveness. By understanding the impact of personal selling on purchasing decisions, Oriflame can develop more effective marketing strategies that cater to the needs and preferences of its target market.

Recommendations

Based on the findings of this study, the following recommendations are made:

  • Oriflame should invest in training and development programs for sales consultants to improve their skills in building relationships and building trust with prospective buyers.
  • Oriflame should utilize digital platforms to reach prospective buyers more broadly and to accommodate the needs of students today.
  • Oriflame should conduct more comprehensive market research to understand the needs and preferences of students, so as to develop a more effective marketing strategy.

Limitations

This study has several limitations, including:

  • The study was conducted among students of extension management at the Faculty of Economics, USU Medan, which may not be representative of the broader student population.
  • The study only examined the impact of personal selling on purchasing decisions, and did not consider other factors that may influence purchasing decisions.

Future Research Directions

Future research should aim to:

  • Examine the impact of personal selling on purchasing decisions among a broader population, including students from other faculties and universities.
  • Investigate the role of other factors, such as price, product quality, promotion, and recommendations, on purchasing decisions.
  • Develop more effective marketing strategies that cater to the needs and preferences of students.
    Q&A: The Role of Personal Selling on the Decision to Buy Oriflame Products

Q: What is personal selling, and how does it impact purchasing decisions?

A: Personal selling is a marketing strategy that involves direct interaction between sales consultants and prospective buyers. It allows sales consultants to build relationships, answer questions, and overcome doubts, ultimately influencing purchasing decisions. Our study found that personal selling has a positive and significant impact on the decision to buy Oriflame products among students.

Q: Why is personal selling effective in the Oriflame context?

A: Personal selling is effective in the Oriflame context because it allows sales consultants to give detailed explanations, build trust, and adjust their strategy to meet the needs and preferences of prospective buyers. This direct interaction helps to overcome doubts and build a strong personal relationship, ultimately leading to a purchase decision.

Q: What other factors influence purchasing decisions, apart from personal selling?

A: Apart from personal selling, other factors that influence purchasing decisions include price, product quality, promotion, and recommendations. Students consider these factors when making a purchasing decision, and they can either positively or negatively impact the decision to buy Oriflame products.

Q: How can Oriflame increase personal selling effectiveness?

A: Oriflame can increase personal selling effectiveness by investing in training and development programs for sales consultants, utilizing digital platforms to reach prospective buyers, and conducting more comprehensive market research to understand the needs and preferences of students.

Q: What are the implications of this study for Oriflame's marketing strategies?

A: The study has several implications for Oriflame's marketing strategies. Firstly, Oriflame should focus on building strong relationships with sales consultants and providing them with the necessary training and development to be effective in their roles. Secondly, Oriflame should utilize digital platforms to reach prospective buyers and accommodate the needs of students today. Finally, Oriflame should conduct more comprehensive market research to understand the needs and preferences of students and develop a more effective marketing strategy.

Q: What are the limitations of this study?

A: The study has several limitations, including the fact that it was conducted among students of extension management at the Faculty of Economics, USU Medan, which may not be representative of the broader student population. Additionally, the study only examined the impact of personal selling on purchasing decisions and did not consider other factors that may influence purchasing decisions.

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

A: Future research should aim to examine the impact of personal selling on purchasing decisions among a broader population, including students from other faculties and universities. Additionally, future research should investigate the role of other factors, such as price, product quality, promotion, and recommendations, on purchasing decisions. Finally, future research should develop more effective marketing strategies that cater to the needs and preferences of students.

Q: What are the practical implications of this study for sales consultants and Oriflame?

A: The practical implications of this study for sales consultants and Oriflame are that they should focus on building strong relationships with prospective buyers, providing them with detailed explanations, and adjusting their strategy to meet their needs and preferences. Additionally, sales consultants and Oriflame should utilize digital platforms to reach prospective buyers and accommodate the needs of students today.

Q: What are the theoretical implications of this study?

A: The theoretical implications of this study are that personal selling is a key factor in influencing purchasing decisions, and that it can be an effective marketing strategy for businesses. Additionally, the study highlights the importance of understanding the needs and preferences of target markets and developing marketing strategies that cater to those needs.

Q: What are the future directions for Oriflame's marketing strategies?

A: The future directions for Oriflame's marketing strategies should focus on building strong relationships with sales consultants and providing them with the necessary training and development to be effective in their roles. Additionally, Oriflame should utilize digital platforms to reach prospective buyers and accommodate the needs of students today. Finally, Oriflame should conduct more comprehensive market research to understand the needs and preferences of students and develop a more effective marketing strategy.