THE EFFECT OF PRODUCT PRICES ON CONSUMER PURCHASE DECISIONS AT UD GEMILANG ASRI RATTAN

Abstract

This study aims to determine and analyze the effect of product price on consumer purchasing decisions at UD Gemilang Asri Rattan. The type of research used is quantitative research with a causal associative method. The population in this study were all consumers who had conducted transactions at UD Gemilang Asri Rattan, with the sampling technique using non-probability sampling through the incidental sampling method to obtain a sample of 30 respondents. Data collection was carried out by distributing structured Likert-scale questionnaires that had been tested for validity and reliability. Data analysis techniques used include descriptive analysis, model feasibility test (F-test), simple linear regression analysis, coefficient of determination test (R2), and partial hypothesis test (t-test) assisted by the SPSS program. The regression analysis produced the equation Y = 6.344 + 0.582X. Based on the model feasibility test results, an F-value of 65.700 was obtained with a significance of 0.000 (<0.05), indicating that the regression model is highly feasible to use. The result of the coefficient of determination test (R2) showed a value of 0.701, which means the product price variable contributes 70.1% in explaining the variation of consumer purchasing decisions. The hypothesis test result (t-test) proves a t-value of 8.106 with a significance of 0.000 (<0.05), so H0 is rejected and H1 is accepted. The conclusion of this study indicates that the product price has a positive and significant effect on consumer purchasing decisions at UD Gemilang Asri Rattan.